The New York herald., 1922-08-13
FINANCIAL NEWS
AND COMMENT
Irregularity Marks Short Ses-
sion i'm Stock Market
Trading Is Dull.

I Indications yesterday that the railway
heads were about to accept President
Harding's proposal to submit the senior
| ity question. principal stumbling block
in the way Of a settlement of the shop
mems strike, to the Railway Labor
Board for decision. had little effect on
the market for securities.
No official statement concerning the ex-
ecutives' attitude could be obtained and
while several statements of an unoffi-
cial character were published. to the
effect that the executives had decided
TO accede 10 the Presidents wishes. the
majority Of traders in Wall street pre-
ferred to have something authoritative
10 go on before making commitments.
As consequence, the market failed to
register it's reaction to the unexpected
turn of railroad events.
Trading as a whole was dull. Trans
actions were numerous, but all through
the half-session they were In exceedingly
small lots-in fact for long periods the
ticker appeared 20 carry nothing except
100 share transactions indicating the
policy OF traders OF big calibre to re-
main out of the market urtil something
more definite than the present unofficial
assertions has come forth. II cannot be
said that there was any definite trend
established all through the half days
trading. While a number of stocks made
substantial gains. some OF them adyanc-
ing almost four points above Fridays
close about as many more registered
just as substantial declines. Irregular
ity was the outstanding feature.
The best evidence Of strength was fur
nished by the same stocks which stood
out as leaders on Friday. namely. the
mail order house issues. some of the
public utilities, certain tobacco shares
and the steels. The last named were
about the only ones which moved as
group.
Buying of the steel shares was largely
for short account. There has been an
enormous short interest built up in those
stocks in the last two or three weeks.
ther contraction OF operations because
of a shortage OF fuel. Traders have ar
gued that not only will current earnings
suffer materially by reason of this re-
of administration officials it may be
some weeks after the settlement of the
present strike difficulties before the steel
industry will be able to get its necessary
supply of fuel once more.
With this short interest in existence.
therefore, 1t required only the buying
which made it's appearance in Lacka-
wanna Steel yesterday on stories that
the Bethlehem merger will be formally
concluded in the coming week, to start
covering movement all through the
group.
The rest Of the market which moved
upward was influenced in its course
largely by group operation. Conditions
for the last day or two have been ex-
ceedingly favorabl 10 begin moves In
such stocks as Sears-Roebuck, Mont
gomery-Ward and similar issues. which
are likely to reflect sooner than the
general list the increase in buying power
in the agricultural districts.
Foreign eXchange dld better yesterday
following cable advices, which indicated
that the present conferences in Europe
might, after all. result in something OF
4 constructive nature with reference 70
ieparations. AL Of the European rates
were higher.
In the cotton market there waE early
irregularity. followed by a period OF
strength as the result Of short covering.
Grain was lower, but business in that
commodity was extremely dull.