The Washington herald., 1922-06-16
SELLING PRESSURE
DRIVES PRICES OFF
AFTER FIRST HOUR
Liquidation of Consider
able Long Holdings
Apparent Cause.

NEW YORK. June iS.-After
quiet frst hour with prices steady,
selling pressure again appeared on
hte Stock Exchange. which carried
prices on In a manner similar &C
that on last Monday. A further
similarity in the markets Of the
two days may be, found in the ST.
multsneous weakness in the tive
principal commodity markets-l
those for whest and cotton. In the
reaction in stocks shipping shares
oils and steels were prominent. but
declines of from / 20 3 points were
frequent among Industriais. Rails
were about / point lower. Sales
ran up past the !. SOC. 900 mark. In
bonds. however. the tone was
steady. several of the Liberties
making new highs for the year.
Call money held az az per cent
throuEhout, thus emphasizing the
smooth working Of the Federal re-
serve system under the added bur-
den OF the governments very heavy
transactions In connection with, the
tax date.
sharp Reaction oeeurs.
Dullness during the nrst hours
trading this morning wa, followed
by a fairly sharp reaction lasting
until noon with the voium. Of
transactions greater as prices fell
of. With the technical position
presumably corrected by the break
over the weekend those who hold
the theory that the recent action
Of the market can only be explained
by the liquidation Of \ considerable
line Of long stock appsren.lv had
good arguments TO support such 2
contention in the reaction this
morning. SSudebaker which led tn.
recovery yesterday with brisk
forward movement was one of tr.
leaders in the decline this morn
ing selling of over points II, m
the morning top. There was also
pronounced weakness in the oil
group in spite of the Sinclair divi-
dend announced yeTerdsy sfter-
noon and the report this morning
that the Texas Company would re-
tire its outstanding notes without
resort to new financing.
Announcement that Texas Com
pany would retire its note issue of
s22,7oo.ooo out OF surplus cash on
hand. thus leaving the stock as the
Company's only outstanding capi-
tai obligation, bore eloquent testi-
mny to the exceedingly strong po-
sition in which this company finds
itself. The stock. however. failed
to reflect any enthusiasm on the
part of the trading element over
the announcement After MOVING
up about a point. an eighth at a
the stock declined below the open-
~
Company stock has been more or
less Of mystery for saverai
months. Long before this morn
inE's announcement was made the
financial district has known that
the company was in a strong pas.-
tion. yet the stock has failed In
reflect the fact In some quarters
the reason assigned has been the
liquidation Of some larra estate
holdings. but this has been GeniAd
from authoritative sources.
Exchange.
Most of the European exchanges
were quiet and moved within
marrow range. Sterling gained y
Of cent at Sl4TL italian lire
were slightly higher. and Gsrrnar
marks were little changed at osa
Of cent. French francs furnished
the exception 10 the general condF-
tion. They were active and rallied
as high as ss7 cents, only to dro7
back TO s.s21 cents. A late price.
/ point higher thar low. left IT,
at yesterdays closing price The
news from abroad was fairly sat
isfactory. the renarstions CONNIE
sion having addressed a ro:e 70 the
German government recocni-ir~ y
certain of the hnancizl reforms
which the latter is unde-tab'n~ a-F
calling attention 10 the neccSsitv
[ for steps to cover budcsts-v de9ri'z
Z on account of certain pubic Ss"--
/ ices. TIE tone ~ tre note was
such as to suggest a desire 20 o.