The New York herald., 1922-10-12
FINANCIAL NEWS
AND COMMENT
Stocks Irregular, High Grade
Bonds Weak and Foreign
Exchange Strong.

Further weakness in high grade bonds,
strength in the foreign exchanges and
confusing. mixed movements in the stock
market were the outstanding features In
yesterdays financial markets. There
was little significance in the way In
which stocks moved about. Many issues
advanced violently, while others reacted
in an equally drastic manner.
II appeared that factors concerning
individual companies were the only ones
20 which attention was paid. and the
once more to be the all dominating In
fiuence. Declarations of stock disbursc-
ments by the National Biscuit Company
late Tuesday and by the American
Radiator Company yesterday served to
encourage those who are building their
hopes on similar action by practically
every concern with a big surplus.
The Standard oil Company of New
Jersey announced a 400 per cent. stock
dividend. but the announcement did not
appear until after the close OF the mar
ket SO its effect could not be measured.
II is certain, however that the amount
of the distribution was larger than gem
orally had been expected. There had
been talk OF that amount, but the gen
orally accepted view of the situation was
per cent would be made. There was a
fly in the ointment, however. in the an
nouncement that aggregate dividend dis
bursements viii not be increased. In
other words, instead of getting IS a
share each year in dividends, Standard
of New Jersey stockholders will receive,
for the present at least, only 81 q year
after the stock distribution.
Little attention was paid to the Wash
ington announcements that no new tax
program was being contemplated and
that il win not be necessary for cor
porations to distribute their surplus ac-
counts in order to avoid heavy taxation
Absurd efforts were made to show that
the announcement was even more con-
structive than the original rumor. II
seems silly to assert that stock which
has been bid up from 10 to perhaps 100
points in comparatively short time on
expectation Of stock dividends is in as
good a position if it is suddenly dis
covered that there is no necessity for
the stock dividend and therefore none
will be paid. Just because the surplus
is to be left intact is no reason for a
stock to be bid up so violently in a few
days and held around the top level.
Secretary Melons aptness for gauG-
ing the state OF the money market con
tinues to be emphasized as reports OF
the heavy oversubscription to the $780,
100000 Government loan flow in. 1t is
quite likely that the loan eventually
would have been sold If put out on 3
per cent. basis. but the ease with
which it is being absorbed as Az
per cent issue promises we'll for future
undertakings by the Treasury Depart
ment and calls attention once more to
Secretary Melons keen analysis of the
situation.
Although bonds dld not decline
abruptly in yesterdays market, they
were under more or less steady pressure
most of the day. Offerings were sub
stantial and buyers could get about all
they wanted without making costly bids,
Liberty bonds were shaded along with
high grade rail and industrial obliga-
tions. In the foreign section there was
better TOM. reflecting probably the
turn for the better In the Turkish situa-
tion.
Foreign exchange rates. too, did bet
ter on announcement of the signing of
an armistice in the Near East. The
market was quite dull. but sterling
moved above 4.43, and other currencie,
were similarly higher. Even the German
mark paused in it's decline and rallied
slightly above the low quotations or the
preceding day.
ii is still apparent that the big busi-
ness facing the nation is being held IN
check by railroad congestion. The steel
mills, which always furnish a pretty
good picture of industry generally, are
still held back considerably in their
operations because the railroads are un-
able to move their products fast enough
TO keep them from backing up on the
plants Something must be done soon to
relieve this congestion IL the country Is
to receive the full benefit Of the business
ravf,-al now at hand