Evening star., 1922-08-09
STOCK LIST ACTS
VERY FAvORAB[Y
Despite UnsettIing influences
Early Weakness Is Checked
and Strength Evidenced.
by STUART p. WEST.

NEW YORK. August 9.-The stock
market continued today to give proof
of the strength Of its presnt position,
as it has repeatedly during all the
tests of the last month. Had the
Wall street situation been In the
least sensitive 1t could hardly have
failed to reflect the uncertainty of
what Fridays conference between the
striking shopmen and the heads of
the other railway unions will bring
forth. Had stocks been in what are
technically known as weak hands
fhe sensational proposal from Wash
ington to bring receivership proceed
ings against roads confessing their
inability to move their quota of coal
would surely have brought about a
wave of liquidation.
Opened Weak.
AS it was the railway shares had
a maximum loss in the first hour or
so of a half point to a point. Then
rhe selling ceased and even these
Slight losses were partially retraced
in the afternoon trading. The weak
spots which had developed among
individual stocks in Tuesdays market
did not reappear.
On the contrary there was consid-
erable short covering in the motor.
the rubber and tire and other shares
which had been the object of profess
sinnal attack on previous days
Meanwhile the railway equipments
gave a further display of strength,
the steels and coppers held steady
and stocks of companies largely in
terested in gas and electric lighting
either equaled or surpassed their
previous highs for the year.
a Splendid Showing.
Nothing in the financial situation
of @at- la
est this trial of the stock markets
ability to stand UP against the labor
uncertainties.
The foreign exchanges continued
to decline, with French francs off
nearly a quarter of cent from
where they were selling when the
London conference began. The main
Interpretation of this weakness was
that it reflected skepticism as to
whether the German reparations and
1nterallied debt questions could be sat
istactorily settled with such radical
difference existing between the British
and French points of view.
Big Crops Sure.
Possibly there was some connection
between the fall in exchange rates
and the extraordinary showing in
Tuesdays report of August crop con-
ditlons. This points to an unusually
abundant surplus of wheat and corn
availa BILE for export, and the reading
of the situation is that Europe will
turn to the American market to
larger extent than it did last year
and will consequently have larger
requirements to finance in the ex-
changes.
The passing of the new sugar
tariff caused some selling of the
shares of Cuban producers because
the tax of 1.S4 cents upon Cuban
yCTs1rk 10 .-,I Il.
the so rate proposed by the finance
committee and counted upon in the
market all along.
But the declines In those stocks
did not extend far. The position of
the Cuban companies is not affected
adversely, because what they will
have to pay in the shape of increas-
ed duties they will probably regain
in the price of their product. The
new duties will mean for American
in the pound, assuming that the
American consumer will have to bear
the whole difference between the
Underwood duty of cent a pound
pound Consideration of what this
would mean for the earnings of
American beet sugar caused a rush
of buying in the stock.
Gas Stocks Strong.
Gas stocks were among the leaders in
the market, of the day. Peoples Gas
got well across 90 for the first
time. Inasmuch as the regular divi-
dend. at the rate of SIS, was only re-
Gently declared. discussion of an in
crease Is premature. The rise in the
stock is based upon the current earn
ings rather than the current distribu-
ton, the idea being that at the end
of the year the dividend will be
raised.
Shoe Stocks.
There is very little new in the situ-
alton a S it affects the stocks of Endi-
colt Johnson and Brown Shoe, both
of which were strong today. Endi-
colt Johnson in the first half of 1922
earned its full years dividend of SIS
a share, with something to spare, and
for the last six months is expected to
do even better.
Brown Shoe earnings are such that
its directors are expected to place the
stock on the dividend list either late
this year or early in 1928.