The New York herald., 1922-10-20
FINANCIAL NEWS
AND COMMENT
Prices Generally Move Lower
in C0lOrless Stock Market,
With / to 6 Point Losses.

Aside from certain special stocks iE
which Individual influences. such as
stock dividend prospects. pool operations,
&c. We're at work the stock market was
generally weak yesterday, with net losses
on the day ranging from one to six
points and more in the active list.
Nevertheless. the buying of the stocks
which did move against the generally
lower trend was sufficiently spirited to
suggest that the reaction in the rest OF
the list was largely the result OF
technical condition. for those very stocks
which advanced most were the ones
which have failed to participate to
large extent in the sharp rise OF recent
sessions
The market was a more or less color
less repetition of that of the preceding
day. when certain issues were marked
substantially higher. while others were
sold in large volume under the cover OF
advances The main point of variance
yesterday was that an entirely different
list OF stocks moved against the trend.
Instead of, National Biscuit. Studebakec.
Royal Dutch. Burns Brothers and few
others that were advanced.
Extreme weakness was apparent in a
few stocks, especially Pacific Oil, which
was sold In tremendous volume all day,
breaking at one time more than 6ls
points to a low of ASH. Disconcerting
rumors concerning the corporations abil-
ity to maintain its present dividend rate
were responsible for this drop.
Momentous political developments
abroad appeared to have little effect on
the stock market. AS matter OF fac',
II could not be expected that they would.
The bull campaign in stocks which has
been under way for months has been
based on fundamental Improvement In
business in the United States, and politi-
cal upheavals abroad. such as the Turk
ish affair. &C.. have had no more than
momentary reflection on the Stock tx-
change. There was no reason TO pelieVe
that the fall of the Lloyd George Cabinet
would be given more than passing recog-
milton. In the foreign exchange market,
however. 1t was different.
The day started with sterling ex-
change exceedingly strong and giving
every evidence of a continuation or the
sensational gains of the last few days.
When the news came that the British
was a moment of uncertainty, followed
by a sharp reaction which showed little
tendency to be checked before the close.
1t Is quite likely that the cessation OF
the upward swing and the substitution
of a definite trend in the opposite d.
rection was the result Of purely specu-
lative operations.
The change of the reins OF the BRITISH
Government from old TO new hands
IL tGt H.
ing factor for the moment, but the
thought that it is apt either to shift
the financial policies of the British En-
plre or have any disturbing effect on
business is scarcely worth considera-
ton at this time. British bonds were
inclined to heavness also. rs were
some of the other foreign issues. Ger
man marks again made new low at
3-l00 of cent.
A feature of the bond market was
the wide fluctuations of the 31a per
cent. tax exempt Liberty bonds. This
war loan. on very heavy buying. ad-
vanced in the early trading II q new
record high above 1O3 for the hundred
dollar bond. At that point however. the
demand lessened materially and at the
same time a substantial supply came
into the market and there was reac-
ton of around $3.50 from the ton levels
The buying was largely credited 10. IN
terests seeking reinvestment or pro1its
taken in stocks which have had mete-
oric rises in the last few days.
In the grain and cotton markets there
was little of interest, with most prices
slightly lower. The call money rate
showed a lower tendency for the first
time this week. dropping from to IA
per cent. on the Stock Exchange in the
late trading.