The New York herald., 1922-07-25
FINANCIAL NEWS
AND COMMENT
Short Sellers, Backed by In
fluence Of Labor Situation,
Force Markets Down.

Stocks were sold heavily and weak
yesterday In a session which brought
more serious discussion of strike ef-
fects than any Other since the great
labor disturbances began. The most
active shares, chiefly comprised in
motor. oil and miscellaneous manufac-
turing issues, declined from a point to
more than four points. Cotton futures
fell 43 to SO points and wheat quota
tions at the days lowest levels were
IL to 3% cents a bushel under the last
prices of Saturday.
1t was not evident, however that in
vestors were extensive sellers Of their
stock holdings. and the ability of three
Liberty bond issues to reach new high
levels was proof that the investment
situation was healthy. Easy money
contributed to this state. time funds
being unchanged from last weeks to
~ per cent quotations for the longer
maturities. while the call loan rate
again Sot uoWH " oT2 pei NS"e-
The quick declines Of such speculative
favorites as Studebaker. Chandler.
Mexican Seaboard and Mexican Petro-
leum. with lesser reactions in Ameri-
can Locomotive. Baldwin Locomotive
and the steel, shares. suggested plainly
that professional traders were the live
liest hands in offering stocks.
Strike developments were not viewed
in the Street as prophetic OF an early
settlement. The Railroad Labor Board
appeared to have given up hopes Of
mediation between rail workers and
managers and the deadlock between
the latter groups looked to be as tight
as ever. Hopes voiced on Saturday
that the early arrival Of shiploads of
British coal would change the fuel
strike outlook were weakened by re-
ports of stiff premiums paid for the
American product in the middle West
where shortages have developed.
The encouraging feature OF the shop
workers strike was that IL apparently
was not spreading to other organlza-
tions, except for sporadic walkouts.
The meeting to be held to-day between
the Baltimore and Ohio management
AMI its shop men will be watched closely
by all interests involved. for in the
present stalemate it is realized, every
individual adjustment of differences
has a strong bearing ON the entire
situation.
Stocks started off well enough, but
before the first half hour of business
had passed 1t was seen that the de-
mand was sluggish in several direc-
tions Chandler Motors fell away so
easily that the company's report or
earnings for the second quarter issued
in the afternoon, acted in no way to
head off sales although it showed more
than half the years dividend earned
in that period. Spectators were wary
about adding to their lines OF oil stocks.
fearing that further cuts OF crude prices
might come along. The confidence OF
short sellers was strongest just prior
to the close. when Steel common was
forced back to 99% for a net loss or
lM points.
Bankers had expected on Saturday
that the Guarantees Commissions re-
mort on German finances would be pub
lie by the opening of the new week. but
over the fact that the
survey was not ready was tempered
by news that British and French
leaders would hold an important meet
ing on August /. AS everything indi-
Gated that the German situation would
be the primary subject of discussion,
emphasis was laid upon a changing
French attitude.
The foreign exchanges experienced
the best demand Of the last fortnight.