Evening star., 1922-04-18
taking OF PROFITS
IS MORE GENERAL
Oils, SteeIs, Reading, Ca
madam Pacific and Motors
Are Featured in Realizing.
BY STUART p. WEST.
pecial Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, April 18-The compli-
cations in European politics, threat
ened by the new German Russian
agreement, We're more of an infiu-
Fence in the markets today. Even so.
their effects were small. The foreign
exchanges went lower, especially
francs and lire. Foreign government
securities, particularly the French is
sues, were shaded in price. and there
were periods of very heavy selling in
the speculative industrials on the
stock exchange.
action as occurred was no Nmore than
might have been expected under any
circumstances quite irrespective of
the outside news. The exchange mar
ket would have been the quarter to
reflect serious apprehenSionS over the
political developments had there been
any such feeling in international
banking circles. AS it was, the de-
cline in sterling and continental rates
was too small to be of any import
ance.
Uncertainty at Start.
In the stock market the main ten
dency during the first half of the day
was very uncertain. There was heavy
pressure against most of the indus
trial favorites. but this was offset by
sharp upbidding' of railway stocks
and a few industrial specialties.
1t was quite clear, however, that
the demonstration in the rails was
organized as cover to distributive
sales in the industrial section. In the
afternoon this selling commenced to
show and the decline in many of the
r<recent leaders became quite sharp.
The reactions spread to the bond
market after some of the railway is
sues in the early trading had reached
new highs. The action of liberty
bonds continued to indicate that the
immediate objective had been OBJ
,ained with their return to par.
Flood of Realizing Sales
The market opened under food
of realizing sales. which for the first
hour or more afforded u stiff test of
: it's mettle. There was special pres
. sure against the oils. in which specu
; lative sentiment had been chilled by
the strong arm methods used TO put
up Sinclair. with the consequent vlo-
lent relapse.
While Studebaker and Baldwin
Locomotive were reacting. special
buying made it's appearance in
various other directions, 1t was in
the railway stocks that operators for
the rise were most successful for a
time in diverting attention from the
heavy selling in the industrial list
One after another representative
ISSUES like Atchison. Union Pacific
Louisville & Nashville, Canadian
Pacific and Southern Pacific bettereL
their former tops of the year. The
showing in Atchison's annual report
strengthened the view that an in
crease in the dividend will come later
on.
With Union Pacific and Canadian
Pacific it was simply a case of the
investment demand seeking out
these stocks on account of their at
tractive yield. st. Louis & South
western issues were among the
features.
Decline Is General.
When the market finally turned
.hownward in the afternoon the de-
Cline was very general. 1t was quite
pronounced in the early railway lead
ers, as it was in the industrials. which
had been more or less weak from the
start.
The important steel. motor and
equipment stocks were all down three
$40 four points from their recent high
: before the rank and file of the street
were fully aware that a real reaction
was under way.
There was no news to explain the
drop. The experienced traders rea-
lized that it was inside and not out
side conditions which were account
able for the decline