The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-06-16
STOCKS UNDERGO
SECOND REACTION
Prices of Many Favorite
Issues Fall After
Firm Opening

NEW YORK. June 15.--stock
market today experienced what is
technically known as a secondary
reaction" prices Of many favorite
issues in the various speculative
ug.ps falling sharply after firm
10 strong opening
very Consid cradle part Of the
carly buying evidently represented
sEnft covering, based on cables an
rouncug cut in the Bank of Eng
land discount from to 3la per cent,
,ha lowest rate since January, 1914.
The cut in the British rate was the
a pyge surprising from the fact that
Washington advices quoted treas
: nv officials as opposed to any
ov..ing Of federal reserve rates, in
spite of numerous requests from
branches.
As soon as the early demand for
stocks had been satisfied, heavy
selling orders appeared, especially
IN shippings and equipments. These
leaders, such as Mexican Petroleum,
Smd.uaker, Baldwin and the lnde-
pendent steels.
offerings Of international Mer-
camille Marine common and pre-
n -
7s points, respectively were attu-
Jatcd to the poor earnings shown in
the company's annaul report. and
the less favorable outlook for sub
sdy legislation.
Reasons for the reversals in other
issues were less apparent or con-
yuring but the list displayed its
heaviest tone on news that the rail-
way brotherhoods had taken a more
a.Ero sive attitude on the strike vote
question.
Final prices disclosed net losses
OF TO points in the steels, prom
iucnt equipments, motors and rub
Der accessories. Domestic and for
eigu and petroleums and shippngs
while such rails as Southern Pacific,
Reading and New York Central for
feited ! to points. Sales amounted
to i, $4,000 shares.
Call money opened and held at
IL per cent throughout, that quo
tauon being regarded as very reas-
enable in view OF the heavy drain
upon local reserves for federal in
tcrest payments. Time rates We're
easier for 80 and 60-day loans, but
recent firmness for the longer ma
turtles was maintained.
All the important foreign eX-
changes were strengthened by the
action Of the Bank Of England, but
Dutch, Norwegian and Danish re-
mittances eascd 3 to Is points.
Extensive buying OF Liberty is
sues in which seven of that group
sold at par or better, with new high
records for the 3 f-2s at 10000 aud
the fourth 4 Ids at 10O.10. consti-
tuted the main features Of today's
active and generally strong bond
market. .
Foreign government loans also
were better, presumably as a result
OF the lowering of the Bank of Eng
land discount rate, although British
offerings Jared less well than French
governments and municipals in the
rise OF European issues.
MeXicans were most unstable, the
As and both classes of 5s losing
ground after early trading in whicn
the As and regular 5s showed great
er strength.
Speculative or underlying mort
cages again featured the domestic
railway list, notably Peoria & Eas-
tern Incomes. St. Louis & san Fran
cisco incomes, Erie general As and
{. q o. controvertibles l2s. The
firmer industrials and utilities in
cluded United states steel So and
American Telephone IS. Total sales,
par value, aggregated $l3,4j9,0OO.
Among the latter underwritlngs
good demand was reported for the
new ugo-Slavia S25,0G0,000 issue
Several state and municipal loans
are under way, including City OF
New Haven $2,0OO,00O loan for i'm
provement purposes.