The Washington herald., 1922-06-17
FIN AN GAL
SLIGHT DECLINES
RULE IRREGULAR
STOCK EXCHANGE
Liquidation Brings Point
Loss in Industrials and
Small Drop in Rails.

NEW YORK. June 1t.-Another
burst Of liquidation occurred On the
Stock Exchange this morning. whica
carried the prices Of many Ie.dfnr
stocks on one and two points. This
was succeeded by a frnins up On the
afternoon. which left a number o.
losses Of about one point smonE IN
dustrials and fractional declines
among the rails Some irreruisr1ty
existed. however. and Mexican Petro-
leum made a spectacular rally toward
the close. reaching q fsure six points
above the previous close Bonds alec
were irregular. Liberties being firm
and speculative rails showing some
soft spots. Call money opened At ~
per cent and was reduced to par
cent during the fourth hour.
Bargain Hunters Busy.
This mornings stock market con-
tinued to follow closely the develop
ments during the previous days Of
the week. Buying orders from bar
gain hunters In a few issues resulted
In some higher opening prices. but
after these had been filled Il was
quite evident that the supply OF stocks
for sale was greater than the de-
msnd. and prices accordingly were
marked down during the entire morn
ing. Quite q number Of individual
issues which were prominent in the
advance during April and May dis
played more than common weakness.
Dawson Chemical. Baldwin. Crucibie.
Republic. Houston OIL and Pscihc OIL
were all sold vigorously and orders
were only filled at substantial reduc-
lions from the opening price. Among
the rails. some Of the non-dividend
paying stocks which advanced dur
ing the spring followed the course
Of the industrisls in the same cate
CORY. Offering Of 1000 shares of
Texas and Pacific broke the price
81 points from the quotations TO-
them only made yesterday. ST. Louis
Southwestern was another weak spot
among the rails and even the stand
ard dividend-psying issues IN this
group were marked down steadily.
Some observers were inclined to at
tribute the selling 20 the fractional
reduction in the reserve ratio Of the
Federal Reserve banks and the loss
Of / n points in the ratio OF the Local
institution. just as there were some
who attributed the upturn yesterda,
to the reduction in the Bank Of Ems
lands rate and the hope that similar
action might follow on this side
Those who were in a position 20 fol-
low closely the situation. however
scoffed at such reasoning. According
to the latter group. there IL no rea-
son to believe that the change in this
weeks bank report indicates any fun
damental change in the trend OF
money market conditions.
Inside Conditions Responsible.
According to those whose position
enables them TO acquire at least par
tisi information regarding the com
plicsted forces which AZ the level Of
day-to-day market prices. the mar
ket is being affected most strongly
not by outside influences but by con-
ditions within the market itself
Whatever the cause. there has been
real liquidation OF stocks on = sub
stantial scale since the beginning Of
last week. and in this fact lier the
reason for the rather PERCEPTIONS de-
cline which began early last week and
has been gathering force since that
time. Professional selling has. Of
course. been a contributing factor.
and so has the disinclinstion 20 buy
stocks on the part OF those who can
generally be counted on 90 furnish
support Those who are most fanfl-
lar with the situation are unwilling
TO buy even those issues which seem
to have discounted the reaction which
naturally follows such a long sus-
tanned advance as the market had en-
joyed up to the beginning Of June
until they are certain the technical
factors which have msde for the re-
cent vigorous selling have been cor
| rected
While the general feeling Of the
financial district is strongly pessi-
mistic as to the immediate future Of
the market. no one believes that the
present reaction marks turufng
point in the general advance. Many
observers expect dullness during the
early summer months without ma
terisl change in price levels except
In a few individual stocks. followed
by a resumption Of the upward move
ment later in the year when the pros
poets for the years crops will be
fairly clear and the seasonal upturn
in business which normally takes
place early IN the fall can be fore
seen with some degree OF accuracy