Evening star., 1922-10-27
RALLY IN MARKET
CHECKS DECLINES
Changed Sentiment Shown
in Today's Partial
Rec0verieS.
BY STUART p. WEST.

BY Special Leased Wire to The Star.
NEW YORK. October 27.-Today's
developments bearing upon the Wal
street situation were conflicting.
There was a further sharp recov-
cry in the foreign exchanges, which
in view of the uneasiness over the
European outlook. was rcassuring
On the other hand, the heavy selling
of United States government bonds
both old and new. continued. and the
September traffic reports kept bearing
witness to the unusual expense t,
which the railroads of the country
were put during the shopmen's strike
Special Moves Watched.
The trading element laid great
stress upon the action of Studebaker er
today. One of the reasons ascribed
for the selling movement in the gen
eral market was the desire to replace
some important holdings of Stude-
baker stock in advance of the divide nc
meeting on October 81. a house that
has had good deal to do with past
moves in American oil stocks was
sending out bulliSh adViceS on some
of these, and the effect showed in the
market. In view of the fact that In
dustrial Alcohol is regarded dS !:
standard oil property. it was consid-
cred significant that this stock raj
lied more readily than the averaeG
Supporting orders We're brought into
play in Anaconda at so. a single block
of 5000 shares being taken at that
figure. This was the price at which
the new stock was put out tha; was
used for the purchase of The AmerI-
can Brass Company.
Much Interest In Oils.
The strength in Transcontineutal
Oil which was manifest in today :
market was due in the main to the
statement that the property in Co
lombia owned jointly by Transcon
tinental and standard oil of cali
fornia was being proved up by the
drilling of two wells. in one of which
at ZOO feet. an oil sand has been
struck
Apparently the low selling prices
of Caddo Oil common stock recently
have had nothing to do with the
actual condition of the company. For
the first six months of the current
year Caddo showed a net operating
income. after all charges. of S331.oo0
the equivalent of 81 II share on the
common stock.
Sterling Exchange Gains.
Sterling exchange CROSSING st.4'
around noon was up nearly cents il
French francs. which had touch,'
.u6A2 Wei, Back at5OVr fuv .-.'yA'
level. Even German marks wcr" :
shadc b,ttcr. This recovery may
have meant that tn. recent decline
had gone far enough to discount thi
uncertainties of the French bulge
ana the threat of German bankruptcy
or it may have meant simply tina
specuiatorS for the fall were takins
their profits in the exchange marke
TIL. same as they do in any Specula
tive market after particularly rapif
downward turn. But at all svcntt
il had for the time being a faVorabl.
influence.
The drop in our government bond!
was due to causes already pointed
out that are perfectly clear. and hav'
nothing to do with the situation OF
the stock exchange. Still the new
Treasury 4 as. sinking below %. ano
the various liberty Nhonds off another
twenty to thirty points was not ar
inspiring spectacl. for tn. investmen'
or the speculative" markets. some ni
the selling of liberty bonds has beer
coming from corporations needing
more working capital. and some Of il
has been coming from banks.
stock Trading Errntic.
In this connection the decrease re-
ported by the Federal Reserve of S3s.
300. 900 during tn. past week in hold
ingS of United States securities is de-
cidetlly significant. All but Il little over
So 900. 900 of this decrease occurred ir
the New York district, showing the cf-
feet OF the stock market liquidation
upon the credit demands.
Trading in stocks quieted down CON
siderably. and during the greater part
Of the time the tendency was uncer-
tain. In the first hour or so prices
had a fairly general rally under the
but subsequently the movement be
came very irregular, with here and
there some renewal "f selling. Th.
Bank OF Germany once more sur
lasSed all records for II single week 5
note expansion. In the seven days
ending october % it reported an in
crease of $4,000 O00.U marks.
Under these circumstances il is not
surprising that representatives of the
German repArations claimants should
have felt that it was time to act.
Grain More Important.
Renewal of the upward movemen,
in the grain market was from &
larger viewpoint the most important
occurrence of the day. The rise hotf
in wheat and corn was the SharpeS'
Of any day in some time. carrying
prices to the highest of the autumn.
In the afternoon the recovery ir
the stock market became better de-
fined. 1t was not altogether general
but. on the whole covered enough
ground to be convincing.