New-York tribune., 1922-07-09
Stocks Turn
Downward on
German News
Profit Taking Also a Minor
Factor In the Movement;
Average Loss Is About l
Point; Trading Is Quiet


centers Of this country yesterday, reg
lstering IN declining prices and valus-
tions q elear-eut response TO the un-
certainty Of the international outlook
as financial crisis for Germany draws
near, furnished a significant demonstra-
tlon Of Independence, economically and
financially. Of the Unitede States and
Europe The advancing trend was
maintained only in investment securi-
ties and In this division tho bonds Of
countries immediately concerned with
reparations moved neTously. French
government bonds In particular were
reaetionary.
In the stock market, q net loss on
the average Of about point on a small
volume Of transactions reelected the
effort Of traders 10 revamp their posi-
tion IN anticipation Of possible un-
favorable Developments abroad over
tho weekend. To some extent, profit
taking was still a factor, but the con-
trolling influence was the fear en-
gendered by the German attitude. II
was the frst time In several months
that the European prospect has en-
tered the Stock Exchange with such
force. Yesterday, the probable de-
fault and It's effect upon Europe and
more indirectly upon American pros
perity were uppermost in the trading
mind, almost to the complete exelu-
sion Of domestic topics. The bearing
upon stock prices was accentuated by
the action Of the foreign exchanges
and Of the commodity markets which
were more Immediately concerned. The
fact that chief losses were suffered In
recently advanced fAvorites, notably the
domestic oil group, was merely con-
hrmatory Of the readjustment process
The mark clearly proved that the late
rally on Friday was ephemeraL Deal.
ings at foreign centers were highly ex.
cited and quotations OF practically the
entire list Of exchanges came through
lower. Sterling was fairly steady, 9
condition which was favored by the ar
rival here Of s2,5O0,OO0 in gold
shipped by the British government pre-
sumsbly In preparation for the October
payment Of interest on its debt to the
United States. As marke sank quickly
to q new low at 1871 hundredths Of g
cent, francs and lire were offered In
volume and met with few supportipe
orders. The former declined TO the
minimum level in 1922, It's weakness
being stressed by the realization that
Frances present attitude Is calcu'
lated enormously to broaden the III re-
suits Of Germany's collapse. The ac-
tual news was to degree conflicting;
one report declaring that Germany had
notified the Reparation Commission Of
inability to meet the July l payment
and asked a moratorium; another thai
Germany had funds In hand TO clear uI
this obligation. The tenor Of all ad
vices, however, was in agreement that
a showdown in Germany could not long
bo deferred.
Cotton prices, which have been per.
sistently falling all week on the theory
that European buying will be sharply
curtailed II Germany collapses. sfumpet
40 points, btu regained part Of this or
Japanese purchases, estimated at 25,0OC
bales, to close 10 to "a points lower or
the day. The wheat market was also
unsettled and prices closed IA to 2h
Gets below the final levels Of Friday
Liquidation in this market was genera
and widespread. and easement in prices
was without material interruption.