New-York tribune., 1922-03-05
Profit Taking
Is Chief Factor
In Stock Drop
Selling Movement Acquires
Chief Force i'm Spe-
cialties and Securities
Driven by Pool Operations

Liquidation, based upon the desire of
traders to take the profits Welded bv
the recent advance in prices. fixed
dominant characteristic of Yesterdays
financial market as notably reactionaYv.
the foreign exchanges. where iregu-
larity subsequent to FRIDAYS setback
prevailed, being the only execution.
The selling movement in the stock
market acquired chief force in the
case OF specialties and groups of Sc
curities which have recently been
moved upward sharply by pool opera.
tions. Motor company stocks wcr.
especially weak, but the decline was
general and railroad as industrial
shares suffered. The market was mod
eratcly active for r. short session.
transactions involving more than 400.
900 shares
The effect of profit taking sales was
equally in evidence in the commodity
markets. The reaction in the price of
wheat, which resulted in net decline
on the day OF ! Il to 3ss cents, was at
trlbuted to the determination of East
ern speculative interest to unload
their holdings, apparently on the
theory that the recent advance had
been too fast and tina. it was time to
sell The news bearing upon the mar
ket was constructive from the stand
point, especially the report of stzs-
able export business, but was for ti,e
moment without influence. Cotton
prices also sagged and at the finish
were 10 to 20 points below Fridays
closing levels. In this market also.
technical considerations were in con-
troll and little attention was paid to
the government report of fertilizer
sales, which offered meager encourage
ment of an increased crop in prospect
Fluctuations of the leading foreign
exchanges were extremely irregular al
though within relatively narrow limits.
The shifting of quotations was so
rapid as to make trading almost out Of
the question during most Of the ses-
sion, but toward the close sterling and
the principal continentals ACQUIRED
more stability and gradually firmed up
The consequence Of the DAYS mixed
movements was net appreciation
amounting to almost cents in sterl-
ing, points in francs and points in
lire. guilders and the Scandinavians
showing little change. Marks weak
ened, slipping below 40 cent again.
Uncertainties Of the British political
situation supplied the sentimental mo-
tive necessary to supplement the tech
nical factors of unsettlement in the
foreign exchanges. Of collateral in
terest, but of less direct influence was
the published request by the State De-
partment that bankers planning to
float foreign loans in the American
market should give it an opportunity
Tor expressing approval or disap-
approval. The purpose of the Admin
lstration in cutting away the semi
secrecy that has surrounded its policy
i nthis respect is believed by itnerna-
tlonal bankers to be the assumption of
more direct control OF the situation
that funds borrowed here may not be
used to finance purchases from our
competitors and that the loans ar
ranged here may not interfere with
negotiations for the funding of Allied
Indebtedness TO the United States gov
eminent. Until now the lack of a
specifically announced policy has
tended TO weaken its effectiveness.