Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-01-05
RECENT MARKET
BREAK RESULT
OF SENTIMENT
Tuesdays Decline Failed to
Touch Fundamentals of
Business.
SUGAR STOCKS ADVANCE
Special to Indiana Daily Times
and Philadelphia Public Ledger.
Rv MONITOR.

Special to Indiana Daily Times
and Philadelphia Public Ledger
BY MONITOR.
NEW YORK. Jan. 5.-The market in
every respect served to SUSTAIN the con-
clusion that the sharp general break of
Tuesday was the result chiefly of tech
meal and sentimental influences, accom-
panied by the effort to take down on the
first business day of the new year some
of the profits accruing from the oper-
atoms of 1921.
At any ratee, there is nothing in the
situation that tends to show that the
decline of Tuesday touched the funda-
mentaIs of the business or financial stu
alton The latest news from Chicago
indicates the existence of healthier
banking condition, and as a result of
this the grain markets recovered from
their attack of nerves and cotton also
displayed good rallying power.
It was rather evident from the outset
of the market that the selling which
was such a disturbing feature of late
Tuesday afternoon, was making its ap'
pearance only ycattered liquidation
in a limited nL =. of Issues. 1t was
not long before the list began to steady
itself Selling persisted in General Mo-
tors, which made a new low level in
anticipation of unfavorable dividend ac
ton which was confirmed later in the
day. Kelly Springfield sold off still fur
Their, but came back well in the after
noon. The strongest stock in the morn
ing was American Beet Sugar, but as the
session progressed all the sugar stocks
turned firm and a sharp advance resulted
under the leadership of American Sugar
and Refining.
II is not perhaps unlikely that the
banking element favored a recovery. The
rate for call money dropped to per cent
after renewing at So. This Development
vas a strong factor in restoring con-
4ence.
The steels turned quite strong in the
afternoon on reports Of large orders be-
ing placed for rails. Another influence
was the emphasis laid by the Iron Age
in its weekly review upon the depletion of
stocks in this country, and the necessity
of consumers for going to the mills di-
gect to obtain their requirements.-Copy
right, 1922, by Public Ledger Company.
WALL STREET GOSSIP BY MONITOR.
Reports of unfavorable action to be
taken by the directors of the American
Sugar Company on the preferred divi-
dend were denied officially by President
Earl Babst. An outstanding short in
tereSt of large proportions took fright
with the result that the price of the
stock advanced more than four points.
Trading was in large volume. sales Of
$500 and 2 400 shares in single blocks be-
ing recorded at IS and another block of
1000 shares changed hands at half
point higher. 1t is reported the out
standing short interest in American
Sugar as well as in some Of the minor
sugar stocks is larger now than at any
time in recent months.
There has been some discussion of the
action to be taken by the directors OF
the International Nickel Company on the
preferred dividend. Both common and
preferred stocks have been weak on
selling reported to be for an estate. In
one influential quarter it is said there
is no cause for uneasiness as to the pay
ment of the next diviuend on the pre-
ferred, but that after that conditions
will determine what action viii be taken.
During the uncertainty Of the early
market, Sears ROebuck was consistently
strong International Harvester was
nearly a point higher than its previous
close at the opening and advanced farther
also on buying reported to be for Chicago
account. The assistance rendered last
week by the president of Sears Roebuck
has changed the status of that company
in the opinion of some usually we'll
informed houses.
The iron and steel reviews contained
a good deal of optimism for he future
Of the industry. Coincident with the pub
LEGATION of extracts from them was the
announcement that the pennsylvania
Railroad Company had placed an order
for $4,000 tons of rails for 1922, and
that the japanese government has pur-
chased IS coo tons of rails. These state
ments appeared at a time when the gen
eraI market was showing signs of i'm
provement and brought buying orders
into the steels and steel equipments,
Gains of one to more than two points
were registered under this buying, and
were held generally to the close.
Advices from Cannes indicating that
a basis for agreement in principle had
been reached in the discussion for stabil-
izing foreign exchanges was without
effect Introduction by Senator Owen OF
a bill to amend the Federal Reserve Bank
act to permit the organization OF Fed
eraI Reserve Bank for foreign transac-
tions embOdying in principle the plan OF
Frank Vanderlip, likewise caused 1T
tie comment One banker expressed the
opinion that this country is doing all
that it can do and that no foreign bank
ing project sponsored by the United
States could exercise any greater in
6uence.
There is a very definite sentiment in
the banking community against involving
United STATES gold in any plan for the
sterilization Of European currency. 1t Is
admitted there is little chance for re-
deeming the great masses of various pa
per currencies that have been issued by
foreign governments. ANY attempt, it IS
pointed out to stabilize these currencles
must rest on the fundamental value Of
gold and the flow Of foreign trade. a
uniform standard of value could not be
maintained unless imports and exports OF
a given country are sufficient to result In
an interchange of international monetary
units bankers here say. Stabilizing ex-
change without assurance IF free flow
of goons would be without effect. There
is IN inclination among bankers to re-
gard any plan of the kind as an excuse
for obtaining gold from this country.
Baldwin Locomotive, after making an
early low just under a. closed at 9j The
volume of trading was comparatively
small. but during the last hour several
sizeable blocks of stock changed hands
when it became known that the Polish
government has paid the semi annual in
terest Oh its bonds held by Baldwin.
Another echo Of the Stutz corner was
heard in the filing of a suit against Allan
A. Ryan by his sister in law, Mrs. Caro-
line S. Ryan for S1,IG57G9. Similar ac-
ton was taken last week by Mrs L..