Evening star., 1922-11-06
TURKISH FLARE-UP
DEPRESSES STOCKS
List Sensitive to Danger in
European Affairs-EIec-
tions Also Factor.
BY STUART p. WEST.

BY Special Leased Wire to The Star.
NEW YORK. November 6.-lt was a
question how far today's reaction In the
markets was the result OF the un-
expected fiare-up in Turkish affairs and
how far it was the result of the pessl-
mistic comment over Sunday regarding
Germany's financial plight and the
French financial outlook.
Stocks More Sensitive.
The stock market. after its sharp rise
in the latter half Of last week. was
more sensitive to the unfavorable de-
velopment in European politics ana In
the exchanges than it would otherwise
have been. Still, there was no great
amount of weakness. For half an hour
or so after the opening spectators who
had bought last week endeavored to get
out OF their stocks. and this they were
not able to do until prices had dropped
off point to two points among the
more volatile industries and point
among the rails.
This decline was soon over, how
ever and then the market settled into
dullness, which lasted pretty much
through the remainder of the session.
New buying was held in check, as
was natural. by the unwillingness to
increase commitments with the cleo
tion holiday impending and the pos
SibllltE or more bad news from dDrOau
by Wednesday morning.
Foreign Exchange Weak.
The decline of over cent a pound
In sterling exchange and the unsettle-
ment in the London security market
Were a direct response to the coup
at Constantinople. which introduced
another Turkish crisis quite as acute
as the one of a month ago. The new
low level of the German mark. the
lrra iy, LSpnv oh,
exchange and a further drop in
French government bonds. while they
were. no doubt, helped along by the
Turkish news. would have probably
come about anyway. however, as the
result of the suggested failure of the
conference between the reparations
commission and the German treasury
officials to work out a remedy for
Germany's desperate situation.
The fall in the German mark to one
and half one-hundreths of a cent
was logical accompaniment of an
other tremendous note increase re-
ported in the last Reichsbank state
ment. The jump of nearly $4,000 00O.
600 marks is by far the largest that
has yet occurred in a single week
This makes total expansion in the
paper circulating medium of 8,000,-
100000 marks within the last five
weeks. Under these circumstances,
with the output of new paper cur
TencS constantly growing greater, IL
Is easy enough to understand why the
German government says that it must
have foreign loan or else will throw
up its hands.
French Problems Acute.
So far as the French position is con-
cerned il is all very well for the lead
ers to declare that they will do their
utmost to fight against imitation, but
was the huge deficit confronting they
may not be able to help themselves.
This deficit. varously estimated at
between 5000 OOO.O 900 and 1000, 900. 900
francs for 1923. will have to be
financed either through additions to
the already enormous burden of in
ternal debt or through borrowing
from the Bank of France. which can
only be done at the expense of paper
note expansion.
Moreover, even assuming that
French investors will shoulder this
new load of debt. this will not meet
the contingency of German failure to
continue supplying materials for re-
construction to the devastated regions
of France. The franc has not sold as
low as it did today since the third
week of January, 1921.