Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-10-29
WEEKLY FINANCIAL REVIEW

New York, Oct. 2S.-Stock and bond
prices were under heavy selling pres
sure most of the week with the result
that there was a material shading Of
quoted values.
Professional selling founded on the
belief that the recent rapid advance
had been o%verdone, especially in high
paid industrial stocks, was the chief
contributing feature to the acute weak
ness in stock prices. Public buying
participation in the stock market was
virtually negligible although there was
abundant evidence of profit taking in
response to advices of the larger com
mission houses.
Weakness in bonds, particularly the
United States government AIS, was
ascribed to heavy institutional selling,
presumably to acquire funds to meet
the increasing demand for commercial
credit, One of the paradoxial features
of the market vas the selling by banks
of the government new Az per cent
bonds which had been three times over
subscribed at par, as low as 99.12, a
discount of 81 cents on 500.
Traders generally were o. the
opinion that the reaction in stocks was
the result Of inside market conditions
not influence to any great extent by
outside considerations. News develop
ments generally were of a constructive
nature. resumption of the six per cent
dividend by the Pennsylvania railroad,
the declaration of an extra cash divi-
dend by the Norfolk and Western rail
road being registered as particularly
significant. While professional senti-
ment was bearish the opinion ives gen
orally expressed that the bull market
had not ended but would run over into
next year although 1t was quite prob
able that some stocks. particularly in
the industrial list had been sold around
their highest levels.
Optimistic reports on the steel in
dustry were given at the ~semi-annual
meeting of the American Iron and Steel
institute. Shortage of unskilled labor.
however. has become an important fac
tor and steel manufacturers frankly
urged a modification Of the immigra-
ton laws to ease conditions. For the
first time in several years the United
States Steel corporation was forced
into the open market to buy semi
finished material because of the short
age due to transportation difficulties.
September earnings statements of
railroads still show the effects of the
shonmen's and miners strikes, but the
record car loadings Of the last few
weeks should be favorably reflected in
next months figures.
In the commodity markets the prtn-
cipal feature was the rise Of cotton
prices. now around "a cents a pound
and the highest in two years. Other
commodities showed an irregular trend.
Stiffening of call money rates was
due to government Withdrawals and
the calling of loans by both local and
out of town banks. Time money is in
good demand ct 4 per cent for the
longer maturities but bankers are de-
handing five for over the year require
ments. The commercial paper market
is firm.
A sharp break in foreign exchanges
carried the French, Belgian and
Italian rates to the lowest prices of
the year. Sterling also yielded, but
rallied toward the end of the week and
carried the others to higher ground. 1
Weakness in francs was attributed
to their buying of dollars with French
funds to meet interest on the val
debts. heavy American purchases OF
raw materials and possibility of a de-
fault in German PREPARATIONS payments.
Political disturbances In Italy N
tributed to the weakness of that rate.