Evening star., 1922-01-27
LAST-HOUR RALLY.
!. RESTORES LOSSES
Buying Puts Some Specialties
High for Day-CIosing
Irregular.

NEW YORK. January 27.-Leading
issues were more sensitive to pressure
and tighter money at the opening of
today's stock market. Postponement
of dividend action on Consolidated Gas
caused further reaction of *
points.
= Railroad equipments and shippings
also became heavy. American Loco.
United Fruit sustaining ono point
losses
Rails, coppers and sugars gave way
moderately. Gulf States Steel made an
initial gain of one point, but this was
Immediately forfeited. Preliminary
foreign exchange rates were mainly
higher.
Rumored Steel Hitch.
Rumor of a hitch or possible aban-
donment of one or more OF the pro-
posed steel mergers porvoked fresh
selling Of those shares during the
first hour.
Gulf States extended its reaction to
four and one-half points and Crucible,
Republic common and preferred and
Midvale averaged one point declines.
General Electric was among the
heavy equipments, and metals and to-
baccoS sustained additional losses.
The rally of the second hour. IN
which short covering was a factor,
was led by Corn Products. Dawson
Chemical, Mexican Petroleum and
Columbia Graphophone preferred, the
latter gaining four points. Rubbers
were heavy. however. on the further
cut in the raw product.
Call, money opened and renewed
into next week at per cent.
Hesitation Is Feature.
In all the markets today the chief
characteristic was hesitation, a DISPOSE
tion to go slow about entering new
commitments until more light was
thrown upon the immediate course Of
the business and financial situation.
In stocks the principal source Of mis-
giving was how the market would take
the 1921 reports which are to come out
within the next few weeks, whether 1t
would regard them as water over the
to be depressed by the heavy losses that
will be revealed.
In bonds the main anxiety beyond
question was to the effect which SOL
der bonus legislation, with its threat
OF a nuge new issue of government
securities, would have upon the
money market and upon the invest
ment situation in general.
Liberty bonds, which are the ones
most concerned. because they would
come most directly into competition
with the new bonus bonds, continued
to slip.
On the stock exchange the trad
Ing element again worked for lower
directions. while in others they were
not. Most Of the steels were heavy,
influenced by the check which has
apparently occurred in the negoti-
ations for the two proposed mergers
Of Independent companies. The oils
sponsive to the selling movement and
so were some of the low priced rails.
On the other hand, there were
numerous specialities which not only
held their ground but at times were
bid up: These movements were i'm
pool handling this class OF stocks
felt sure of their position, despite the
action of the general market and
the reaction talk which was heard
everywhere.
Foreign Exchange tronger.
European exchanges were generally
4 stronger. with French francs up 1s
points from their low at the start of
the week, and with German marks up
to so again, as against their recent
low OF AT. Quite possibly the recovery
in mark exchange had some connection
with the disclosure in the Bank Of
Germany's statement that for the third
successive week note circulation had
come down. From the high of month
ago note issues have been reduced only
1.1Oo.0 100000 marks. which is very
slight by comparison with the weekly
increases of three to four billion marks
during the autumn and early winter.
Going through the quotations OF
4.24k, made on December IL, sterling
was higher than at any time in 1921.
1t was noteworthy that the advance in
the exchanges should have gone on in
face of the doubt suggested as to
whether the economic conference at
Genoa will ever naterialize.
Buying Brings Rally.
In the end the stock market gave a
rather remarkable account Of itself In
view of the great preponderance of
hostile sentiment In professional quar-
tiers. With the exception of Republic
Steel, which at one time broke badly,
getting ready for a very poor showing
in the annual report, there were no
weak spots of consequence.
Then In the hnal hour, when traders
had seen that efforts to drive the mar
ket down were not succeeding in
bringing out supply of real stock,
they set about taking In their short
contracts. Buying Of this character
brought about a rally which, in most
instances, restored the early losses
and left number of special stocks