The Washington times., 1922-11-05

OF as violent a contest betweei
as has been witnessed in many
At the close of the period there
was "A general feeling that the heavy
decline in stock prices that had been
In process since the middle of the
month was TO be supplanted by Il
new rally that might easily restore
all OF the consequent losses before
reaching its final conclusion. Stats
ticians have figured that the average
level of stock prices suffered con
traction of nearly s points as re-
suit of the violent short selling and
general liquidation of stocks which
took place in the last two weeks Of
October.
Professionals Busy.
For the most part this was nothing
more than a professional bear at
tack, made possible by the over
bought position Of the market. the
overlooking of thinly margined
speculative accounts, the advance in
call money rates, and the aggressive
tactics employed by those who were
behind the drive" Good stocks
of the dividend class that had with.
stood the heaviest pressure that
could be brought to bear on them
IN previous campaigns were ap.
parently the most easily dislodgcd
In the current movement. and losses
ranging from to 10 points were
not uncommon.
1t is significant. however, that in
the very midst Of the turmoil, when
values were crumbling, and margin
accounts weakening, few OF the ac.
tive traders in Wall street had the
least idea that the bull market of
lS22 had run It's course, and that
therefore the highest range of prices
for the year had been seen. The
best Of the market theories coin
eided with the view that not until the
new era of prosperity Is definitely
In sight should the succeeding gen.
eral decline in stock value make its
appearance. This is evidently some
distance removed from the present
time judging from current reports
and statements from the prominent
Industrial organizations of the coun-
try. While their promise for the
future is excellent, a good many of
them are still reporting in red ink,
and are still digging into surplus in
order to pay current dividends.
This fact, together with the
strengthening of the technical posi-
tion of the market by the heavy
short selling of the past two weeks,
furnished the real vasis for the
aggressive recovery that featured
the closing sessions OF the week. A
little more than four of the points
loss in the averages were recovered,
with the best exhibition in the specu-
lative stocks that had been most
hasty in the downward pilgrimag ge.
This in itself was the best evidence
- hn hat rrafnccinno1 hpor.
ish pressure had been responsible
for the decline. But such move
ments are not infrequent, and must
always be looked for in the prog
ress of any major upward swing IN
prices.
Bonds Irregular.
From the opening of the week until
Wednesday noon the decline in prices
of bonds of all kinds continued, the
most severe losses being registered In
the second-grade railroad and indus.
trial securities. There was heavy
selling of bonds of the st. Paul. Erie,
Frisco and Baltimore and Ohio sys-
tens, with an extremely narrow mar
ket for these bonds. and consequently
prices up to that time were extremely
Irregular Coincident with the abrupt
rally in stock market prices, how
ever, the demand for bonds increased
to such an extent that all offerings
were quickly absorbed, and when the
demand continued prices again start
ed inward. Some of the bonds which
had closed somewhat irregularly on
Thursday mounted upward to the
extent of four points on Friday.
Similar conditions prevailed in the
market for Government war bonds
and new Treasury bonds. During
the first part of the week there was
heavy selling of all bonds of this
class, and prices were extremely lr-
regular, but the end of the week wit.
messed an excellent rally all along the
line and the new Treasury "A per
cents regaine dtheir par position.
New offerings of bonds during the
past week aggregated $4,000 900, the
largest group being that of the in.
dustrials with a total OF about $50.
0OO, 900; new farm loan bonds amount.
ed to S6,500 900, and new municipal,
public utility and foreign bonds about
$4,000, 900 each. Long-term State and
municipal loans issued in the month
of October amounted to $4,000, 900,
which is the smallest monthly total
recorded thus far this year.
The end of the week sees a number
of important propositions for new
foreign loans well under way, most
Of them. however. having their origin
In the South American countries. 1t
II also expected that the new Cuban
Offering Of $50, 100000 will be made