The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-10-14
FINANCIAL NEWS
AND COMMENT
Strength and Weakness Alter
nate in Stock Movements,
With Close Firm.

The stock market has not yet fully
recovered from the effects of the orgy
of melon cutting INDUCED in recently
by several Industrial companies. With
the speculative mind infamed by the
large stock dividends declared by the
STANDARD oil Company Of New York.
Standard oil Company of New Jersey.
Vacuum Oil and National Biscuit. dill
gent search was made yesterday for
prospects OF capital establishments among
other Industrial companies. The search
was highly successful and number OF
prospects were unearthed.
Thus with some stocks suffering from
a too ha"ty advance and others finding
renewed incentive in the stock dividend
assumptions the market was character
lied by rlterna strength md W >akness
Although tn" src~k market had the ap-
pearance az times Il feverish irregular
ity keen obs ars discovered that buy
ing Of a ve"y good character was going
on IN large number Of industrial and
railro"d issues and that final prices
We're better than surface indications.
Violent fluctuations were mostly con-
fined to the high priced Issues such as
on, Mexican Petroleum. Atlantic Rein
ing, American Express, American Loco
motive and American Tobacco. Stand
ard OIL of New Jersey at one time was
snta
vious closing price. Transactions in that
stock were unusually heavy, represent
Ing sales by those who on sober con-
sideration concluded ethat little imme-
di-te benefit would accrue from the
company's stock disbursement.
The decline in Standard OIL of New
Jersey wiped out most of the gain sus-
tained before the announcement after
the close of Wednesdays market OF the
proposed increase in the company's cap
italization with 400 per cent. stock
dividend.
The announcement on Wednesday that
the Government was not contemplating
any new tax legislation this fiscal year
undoubtedly had stabilizing effect on
stock market prices, as was evidenced
to-day. 1t knocked the props from
under the arguments Of the professional
traders. who have been asserting that
many companies were contemplating
stock dividends to avoid taxation. How
ever. it did not entirely chill the enthu-
siasm Of the melon" hunters.
Among the lower priced issues SUBJ
stantial gains were recorded, and toward
the close Of the session renewed interest
was displayed in the rails. Interest in
the rails probably could be traced to the
declaration by the Southern Railway
Company of a semi-annual dividend of
2l2 per cent. on the preferred stock, the
first distribution o. the issue since
December. 1920. Some of the strong
spots in the railroad list were Southern
Railway. Delaware. Lackawanna and
Western, Central of New Jersey, Read
ing and Northern Pacific. Among in.
dustrial specialties showing strength
were Mexican Petroleum. Pan American
Petroleum, National Biscuit. Coca-Cola,
Chandler Motor. May Department Stores
Kelly Springfield Tire, United Fruit.
American Can, Continental Can and
Wilson & Co.
The action of the money market on
the eve of large Government operations
on Monday in connection with the pay
ment OF interest on Fourth Liberty loan
bonds and certificates OF Indebtedness
was watched with a deal of interest
! Despite the fact that the Government
will withdraw at the beginning of next
week S17.000.000 from banks in this
Federal Reserve district money rates
were easier than on Wednesday opening
at per cent. and then declining to Az
per cent. as against the high level of
6 per cent. before Columbus Day.
Cotton and grain were strong. and the
foreign exchange market was Arm. The
turnover In the bond market was large.