The New York herald., 1922-09-29
FINANCIAL NEWS
AND COMMENT
Stock Prices Tend Generally
Lower-Foreign Exchange
Suffers Big Slump.

Wall Street gave little more atten-
tion yesterday to the turn of Ottoman
affairs than has been its custom during
the last fortnight
Foreign exchange rates moved sub
stantially lower. touching new low
points for the present movement and
getting down to figures which have not
been seen since last June.
In the stock market movements were
somewhat mixed with few stocks
but the general trend was lower.
The bond market was forced TO alb
sorb quite heavy selling of railroad and
foreign obligations. but the Liberty is
sues which were so heavy on Wednes-
day recovered small part OF their
losses in most cases.
Stocks did not break as sharply as
they had on Wednesday. nor were losses
as heavy. Many issues held more firmly
at former points of resistance and there
was more of disposition to pick up
some of the better clas of stocks on
recessions. At the same time there was
no indication that the force of the sell
ing had been spent, nor was there any
public element in the market to remain
aloof until definite trend had been
established once more.
Heaviest pressure seemed to be di-
rected against the independent steel
stocks. especially Republic. This was
explained later in the afternoon when
announcement was made OF the final
abandonment of merger plans. Coming
on the heels of official assurance that
any change in the plans would merely
be a realignment OF the merger setup,
the abandonment was shock.
1t was obvious from the action of
Republic, however. that the gist of the
statement, which was issued after the
some operators who were heavy sellers
of the stock. These same interests are
said TO have been sellers of both Re-
public and Midvale in the last few days.
Midvale's rise on the original news of
the merger was relatively small as COM
pared with Republics. and therefore any
reactions arising from a shift in the
plans was certain to fall most heavily
on Republic.
Professional operations still dominate
the stock market. This Is very nat
ural development after the way in which
the Turkish episode was seized upon as
ammunition for an attack against the
long position in the market. Large and
important traders in the so-called pub
lie group have been shaken out OF the
market by the actions Of the profess
sionals and they display no eagerness
to get back.
On the other hand there is a fairly
large group which has refused to be
shaken out but they are unwilling TO
take an active part in the affair at this
time and are sitting idly by to await
future developments. Certain 1t is that
the sending of American warships to the
Dardanelles and the defiant attitude of
the Turk, who, according to press dis
patches. has threatened war unless Eng
land ceases Immediately her fortifica-
ton operations on the Dardanelles, have
not encouraged new operations on the
constructive side of the market.
The weekly reserve bank statements
showed few changes of Importance. Re-
discounts in the entire system showed
a slight drop. while members deposits
wee up some $4,000, 900 and circulation
was higher by more than $24 1000. 10.
The New York banks statement was
equally featureless with very slight
increase in rediscoun's and an advance
of about s35.000,000 In members de-
posits. Government deposits showed a
substantial reduction. The New York
reserve ratio was off seven-tenths of
per cent. and that for the system one
tenth of ] per cent. higher.