The New York herald., 1922-08-23
FINANCIAL NEWS
AND COMMENT
Stock Prices Become Firm At
ter Early Selling Due to
Rail Strike Situation.

Publication of statements in yester-
days newspapers to the effect that the
railroad heads viii fight the strikers to
finish rather than surrender on the
seniority issue gave the stock market
sharp turn and at the opening all
the extraordinary strength of Mondays
trading disappeared and in Its place
came hasty movement to sell stocks.
The less impulsive traders waited. how
ever. to see what was going to happen.
was completed it became apparent that
the generally firm undertone OF the
market had in no way been disturbed.
Conviction on this point led to renewed
confidence and once more stocks started
their upward move. Net changes on
the day We're rather divided, with many
issues beneath the closing prices of
Monday, but the trend toward higher
levels appeared to be just as certain
as on the preceding day. when stocks
advanced from one to four points with
scarcely an interruption.
No doubt the early selling was con-
Quoted for professional account and for
those tmid holders Of stocks who took
the published statements of some of the
Eastern executives as representative Of
the heads of all the nations carriers.
That. however. is the point which will
be watched most eagerly at to-days
conference. for there have been intima
tions that the heads of the roads in the
West and South, which have been hard
est hit by the strike. would overrute
the Fasteners in their firm stand.
One interesting feature in yesterdays
stock market was the way in which sew
eral individual stocks, mostly specialties,
were taken in hand and put up sharply
to new high levels. There were num-
Der of gains of more than Ave AMI six
points. and one stock. Glover Leaf,
gained 91a points on heavy trading on
top of rise of more than six points
the day before.
In all these individual instances there
were no news developments in explana-
tion of the moves and most of them
bore all of the earmarks of group
operation. Hints of developments In the
Van Schweringen plans of railroad ex-
pansion were offered in explanation of
the Glover Leaf move. Western Union
was in heavy investment demand, gain
OF from four to seven points were also
made by United Fruit, Otis Elevator
North American Company. General
Electric. American Car and Foundry and
others.
There was real heaviness in the mar
ket for the Government war loans,
practically all issues selling down
sharply. The heaviest loss was sus-
ta!ned by the 31as of the first loan. which
declined about 36 cents, while drop Of
about p cents was recorded by the
fourth AS at their low points Liberty
bonds have had tremendous advance
over the period of the last year and
any reaction at this time could easily
be accounted for profit taking New
ertheless, there was some selling by
inerests who fear the newly agitated
bonus question. In the rail and indus
trial bond list there was much less
activity than on Monday. but a large
proportion of these bonds held firmly
around the previous days closing levels.
Profit taking in cotton brought about
substantial declines, but there was
little evidence Of important liquidation
In that market. The grain market was
unusually active and strong after early
weakness. getting as high as 1037s for
the September wheat option and 109Z
for that OF May.
Call money ruled all day at 3Is per
cent. The demand for call funds aba ted
considerably from the level Of Monday.
due largely to the sudden restriction Of
commission business on the Stock Ex-
change.
Foreign exchanges were under pres
sure. with all of the active rates easing
| materially.