Evening star., 1922-07-05
FAIR TONE Shown
IN STOCK TRADE
Special Dispatch to The Star.

NEW YORK, July 5.-Interest in to-
days markets lay mostly in direc-
tions other than the stock exchange.
The stock market had not been
sensitive at any stage to the threat
Of nationwide railroad strike.
It was. therefore, not called upon
velopments over the holiday, which
indicated that the railway shopmen
would have to go 1t alone. without
the support of the other unions, with
the stigma of being outlawed by the
United States Labor Board. and with
In a word, the railway labor trouble
practically disappeared from con.id-
GRAFTON altogether. There was lit-
tie buying in railway shares right at
the opening. but it had only slight
effect. and in the subsequent trading
railway issues were neglected.
Francs Drop Sharply.
The principal episodes of an unim-
portant day werr further sharp
reaction after Mondays excited rise
in cotton options and the establish :
ment Of new high records in some OF
the liberty bond issues. At $40, franc
exchange was down nearly ] Il from
the April high, and had undone all
French financial writer's set the de-
cline down to political causes, and
they are doubtless correct. The data
bearing upon the economic situation
proper are unQuestionably more Ia
vorable.
The latest foreign trade figures
continued to show a close approx
nation between exports and imports,
while the revival in home industries
is attested by what observers declare
to be the complete disappearance Of
the re-employment problem in France.
But the danger lies always in the
political game being played with
such severity in the matter Of Ger
man reparations that Germany will
fall down in her cash payments. 1t is
this danger which the drop in francs
has been apprehending. all the way
from the high of 9.37 two and a half
months ago to the $40 reached today.
The reaction in the cotton market
was not surprising after the extra
ordinary reception given to the gov
ernment crop report on Monday. With
all allowance for the departments
estimates being under expectations.
a jump Of $50 to 40 points in less
things. In the calmer view prevailing
today there was less suggestion of
the possibility Of shortage than there
was when the forecast OF only an
1900, ,000-bale crop was first put out.
Mexican Oils Slump.
There was an hour Of 80 OF fairly
general strength in the stock market.
Then the movements became very
uneven as between individual issues.
can Seaboard stocks. listed on the
curb exchange. following a story that
salt water had appeared in the COM
nany's wells. Inasmuch as Mexican
Petroleum has an important stake in
the same territory. the shares Of this
company and the Pan-American were
heavily sold. The break in the Mexi-
can oils put check upon further
operations for the rise in other parts
Of the list. but did not bring about
much selling.
A number OF pool operations which
were suspended in the pre-holiday
period. were resumed this morning.
Coca Cola made a new high. an
ticipating that with earnings having
reached $1000.00o a month. an in
crease in the dividend will not long
be delayed.
Dupont stock had another squirt to
$50, but inasmuch as its rise was
tors going back to the dividend list.
the stock came down sharply later
when the upward movement in Cen
eral Motors shares showed positive
signs OF halt. Motor accessory
stocks did better-Stromberg, Bosch
Magnetic and Spicer.
Hudson Motors Firm.
Studebaker ran up sharply across
130 soon after the opening, but the
advance was dependent largely upon
short covering. and when the demand
from the shorts was over the stock
came down again. General Motors
succeeded in getting through Is, but
ran into heavy selling at 15k.
Much publicity was given to the
recommendation of prominent
Broadway house to switch from Cen
eral Motors into Hudson Motors. The
house in question does not believe
that General Motors will resume
dividend, while it makes the point
that the two-dollar distribution on
Hudson is sure.
Salt Water BuRaboo.
The old saltwater bugaboo was
brought out to plague the Mexican
oils. and it had the effect desired.
The bottom almost dropped out of
the Mexican seaboard issues on the
curb exchange, following the report
that salt water had been found in
three of the company's wells in the
Toteco- -Azul district. As Mexi-
can Pete has large interests in the
same general locality. the selling
quickly extended to Mexican Pete
stock and to the Pan-Americans.
Considering the violence OF these de-
clines. the rest Of the oil group stood
up well.