The New York herald., 1922-08-25
FINANCIAL NEWS
AND COMMENT
Stock Prices Irregular, but
Some Shares Advance to
New High Ground.

Special developments in special stocks
accounted for most of the moves OF
consequence In yesterdays stock market.
and no particular significance could be
attached to any of them. There were
number OF big advances, but these
were offset by number of losses
equally as large. and the character OF
the market as whole could only be
described as irregular.
Certain 1t was that definite announce
heads and the strikers to reach an
agreement at Wednesdays conferences
undermined confidence to some degree.
But it was equally certain that the i'm
portsnt holders Of securities were not
yet ready to liquidate; SO there was
practically nothing in the entire market
to which much significance could be
attached.
One of the outstanding developments
of the day was the announcement by the
American Telephone and Telegraph Com
pany that it intended to issue some
S115, 100000 of new stock. Quite
naturally this brought out some heavy
selling OF the shares. and they declined
abruptly. The recovery after the first
furry of selling. however. was rapid,
and at the close Telephone stock stood
at 119Ss, Off ga points on the day.
The announcement was no surprise,
for 1t has been reported for week or
more that the corporation was planning
TO issue some new stock. although 1t was
not expected that the amount would be
quite so high. Because the move was
not unexpected. however, the profess
sionals who attempted to depress the
price of the stock we're soon checkmated.
and the decline, which otherwise might
have run for six or seven points, was
held down to the ga net loss.
Financing of this sort by a great
corporation can scarcely be regarded as
an unfavorable factor. for it indicates
that the policy Of progress and expan-
sion which has put American Telephone
shares among the prime investment
stocks or the country is not in prospect
of abandonment. Expansion cannot be
conducted without funds, and money
cannot be raised except through the
issuance OF some sort of certificate of
obligation or ownership.
Marine shares suffered a severe break
on publication of news that the prospect
of ship subsidy legislation at this time
is dubious In fact, 1t was indicated
that the plan had been definitely post
poned. Just why the Marine shares
should be much affected is difficult to
understand for a vast proportion or the
corporations ships is operating under
the British flag and would not be aided
in material way through the subsidy
plan Nevertheless the shipping shares
We're bid up on prospects of a subsidy,
and perhaps it is only natural they
should react when those prospects fade.
Pools were very much alive in yester-
days session. A number of stocks in
which speculative groups are Interested
were advanced into new high ground
entirely without regard TO the general
list or, for that matter, to the trend OF
other stocks In the same general classi-
fcaticn. Floor operations alone were
responsible for the sharp runup In Steel
common Just before the close. AS q
matter Of fact word came from the floor
before the stock began to move that an
advance could be expected before the
close, and It came on schedule.
The bond market was very quiet. the
only interest being furnished by Marine
6s. which declined abruptly, and by
International Great Northern bonds,
which gained more than q point on
heavy trading Liberty issues were
slightly lower. but the balance of the
market could be best characterized as
firm
Money rates were a little tighter get
ting up 10 per cent. in the late trading
Trading in cotton was without much
Significance, with the close generally
lower