The Washington herald., 1922-06-14
cIAL
STOCKS REBOUND
NHEAVYBUYlSC
ON EARLY MARKET
Rally No Surprise. But
Quick Start Proves
Startling.

IONEN. June Elclpcu W
the better tone In the stock market
the commodity market enjoyed
natural rally after yesterdays
sharp declines. In the early trading
wheat displayed further weakness,
July entering new low ground at
s1.0s This was due largely to mar
gin calls, which, as in the case OF
the securities market. did not. how
ever. bring forth as large a volume
Of selling as had been ic'pated.
After rallying to s1.Mk. July was
up y cent toward the close at
s1.10&. July cotton meanwhile re-
4. gained 20 points at a late price OF
2l.S6 cents. being supported in par,
by frned tone at Liverpool
After the precipitate declines.
which eliminated during the last
hour of trading yesterday In some
rather violent breaks. stocks rallied
strongly this morning. A few issues
were sold at the opening at prices
below yesterdays close. but in the
majority of cases overnight buying
orders were sufficient to bring
higher quotations from the very
start. The few stocks which opened
on f~showed Improvement within the
first few minutes of trading and by
fhe-end of the first hour had Joined
the majority in the upturn. The VOL
Hpe of trading during the first hour
was very large. but dullness set in
shortly before noon and a sagging
tendency was again evident as re-
.Eards prices of most of the active
stocks.
No Surprise.
The fact that a ra ly came today
did not surprise many observers,
but what did surprise practically
everybody who has ben following
the market closely for the past few
weeks was the fact that IL began
with the opening. A good many
speculative accounts were in neeo
Of addit cnal margin as a result of
tho decline Of the past three days
Of trading and especially of the pre-
cipitrte downward movement of
prices durinr the last hour yes
.tsrday. Last nights rails were
fu'l Of margin calls. and the ex-
recitation in mCst commission houses
vas that there would be a sufficient
sc ling srising from weak holders
Of. stock to produce a continuation
Of the decline during the first hour
al least Nothing of the sort hap
rened. Apart from the testimony
of most of the commission houses
that margin calls were answered
with surprising promptness. it was
perfectly evident from the move
ment of prices that selling on the
part of the weak holders was ur-
important i'll comparison with the
buying orders which We're placed at
the opening.
Those who examined the average
of both rails and industrials at the
close yesterday were impressed
with the extent of the decline. which
in the rails carried the average to
about where il stood during tha
first week in April and for the in
dustrials to fraction below the
low point of May 10. or about where
the average stood during the second
week in April.
Flood OF Orders.
Buyers were offered the first cp-
portunity they hnve had since the
present bull market set in last Au-
gust to buy stocks after a really
sharp recession. and the food or
buying orders. largely from COM
mission house connections. which
appeared at the opening this morn
ing. was eyidenc that the opportu-
nifty was appreciated. In general.
however. the commission houses
were reluctant to advise buying.
opinion in this quarter being prsr-
tically unanimous that while a r.-
covery from the break was due. 1t
would be succeeded by another de-
cline before the resumption of the
upward trend.
Although the avera ces are off less
than points from the years high.
a,sUrprisingly large number of in
diyidual issues showed declines at
last nights closing Of 10 points or
more. The majority of the really
impressive breaks have been in the
oil group. Associated Oil. for ex-
ample. closed yesterday 20I5 points
below the years high; Standard OIL
of California was down 10 points
and the New Jersey company down
HA. Pacific OH was off IL points
and Houston Oil 10S. Some of the
specialties which traders were gaily
bidding up a point or more a day
less than a month ago have also
been encounterinE heavy weather
lately. Dawson Chemical. one OF
the few issues which added another
large loss at this mornings opening
to yesterdays decline was over 10
points below the ears high and
Kelsey Wheel. with loss of 13
points below the years high and