The Washington herald., 1922-12-19
ACTIVE ISSUES SHOW
NOMINAL LOSSES AS
REACTION HITS MART
Reduction of Great Northern
Divident, and Brokerage Fall
ure, UnsettIes Market
By BROADEN WALL

BY BhOADEN WALL
NEW YORK, Dec. 1.-THE stock
market developed q reactionary ten
dency today due TO technical condi-
tions and two unfavorable influences
growing out Of the failure Of one OF
the biggest brokerage houses in the
country, and reduction in the Great
Northern preferred dividend. Most
active issues closed with losses Of
from one to two points. Selling was
heaviest in the late afternoon. Less
was heard about the possibility Of a
loan TO Germany and this found re-
Election in erratic fluctuations In
foreign exchange j. p. Morgans
statement, however, that a loan
would not be considered seriously
until reparetions were readtusted
leads the street TO believe that no
action on lending Germany money
will be taken at this time. Import-
ant investment bankers state en-
phatically that a German loan could
not be sold here unless 'the picture"
was changed. meaning that repara-
tion payments would have 10 be re.
duced and foreign government debts
to each adjusted.
HEAVY SELLING AT FIRST.
An accumulation of buying Crders
over Sunday accounted for improve
nrent in the stock market in the first
hour, some shares making new high
figures. Heavy selling then appeared
in quite a number Of low-priced oil
shares. These offerings followed an
nouncement OF the failure Of one Of
the largest stock exchange brokerage
houses doing business At Kansas
City. Another unfavorable factor
was the announcement that the
Great Northern dividend had been
reduced TO an annual rate Of s DER
cent. This induced offerings Of
other transportation shares, depr.s-
sing prices to around the Lowest
levels reached this year. ACTIVITY
increased as prices drained, more
than a million shares changing
hands. Final prices were near m.
bottom with indications that the r..
action would continue at least To-
morrow.
Commodity prices were generally
nigh with new high records in col.
ton. Call money held firm al >
per cent.
Rumors Of extra cash ana stool,
dividends TO be declared by TN.
steel Corporation were laid TO resi-
when Judge Gary denied that anv
such proposition was under cons,d.
Grafton. The street never really he
lieved that the corporation would
pay an extra cash or stock dividend
me wish being father 20 the
thought.
COPPER IMPRESSIVE.
Strength in the coppers Was r,os,
Impressive. New high records were
made by kennecott. Mother Lode
ana Cerro de Pasco. These shares
are the favorites Of the conner
group because they are lowcost
producers. There is evidence that
the hennecott management will
very shortly make another Offer
OF THIS stock in exchange for
Mother Lode. The new offer is
expected TO be one share of Ken.
necott for each two and a haIf
shares OF Mother Lode. FIurther
increase in the demand for copnar
metal was reported, the price ~.
spending with a fractional advance
The supply Of surplus conner IS
now declared to be below normal
Predictions OF further advances in
It's price are being made by an.
Lhorlues. Absorption Of the Chill.
copper by the Anaconda would
nave a favorable influence on tho
copper market in general as m.
former has been a heavy seller of
the metal ''at the market" rnucb
TO the annoyance Of those com
ranies whose production costs are
much higher.
FISHER BODY.
Fisher Body after touching a
new high record broke more than
eight points. William {, Durant.
former head OF the General Motors
Is credited in Wall street with be.
ing responsible for the activity
in that stock. His sales force Is
understood to be selling certificates
or Interest on Fisher Body stock
his activity has undoubtedly an
moved the Fisher Body insiders.
Rumors that there is danger Of
a corner in Fisher Body are no,
taken seriously.
Less activity in the bond narxa'
is due TO the large volume Of the
most recent Government Offering
that had TO be taken by the hanks
and trust companies. Liberty Bonds
were slightly higher.