The New York herald., 1922-06-13
FINANCIAL NEWS
AND COMMENT
Extremely Heavy Liquidation
Forces Stock and COmmOd-
ity Prices to Fall.

/ SO sharp a fall OF prices as the mar
kets experienced yesterday implies the
| application of some influences common
| to all. but it was doubtful IL any factor
making for reaction was more potent
| than the speculative structure of
the markets themselves. Stocks were
driven back 2ls to more than points.
no group escaping the onslaught of
sales; cotton fell $50 to nearly s.
| bale; wheat lost TO Az cents bushel
and what was evidently selling OF Euro
pean origin carried French exchange to
level half cent under it's best quo
tation Immediately before the bankers
conference met in Paris. while the Ger
man rate eased to point approaching
the lowest quotation of this year Ster-
ling displayed its usual stoical front,
while the other rates were retreating,
but ii, too, was finally impelled down.
ward a full cent to 4485s During the
hurly burly in the other markets call
money calmly moved down to 2at per
cent. after renewals had been made at
) per cent, establishing virtually the
lowest quotation since the fourth week
of January. 1918
The reversal of stocks plainly was the
cumulative product of Intellectual pro-
fessional efforts in the preceding fort
night to attract public following For
ten consecutive days the general level
OF prices either had failed to gain
ground or had lost little each day,
| despite the upbidding of selected list
of specialties and a dozen or so old line
| industrial stocks. The rapidity of yes
terdays recession indicated that stop
loss orders We're uncovered in great
volume, especially among petroleum is
sues. Both rails and industrials were
let go in a flood of selling in the after
noon, the extent Of the last hour break
being displayed in the slump of United
States Steel to level under 81 which
eliminated all the advantage that had
been acquired since the last week Of
April.
Liberty bonds held fairly steady, but
there was a weak tone Of French Gov
ernment issues. and the rank and file of
| corporation securities were infected In
later dealings with the weakness OF
stocks. There were, however, no rea-
sons in the speculative situation why
funded paper should retreat. The gem
eral monetary outlook contained no new
signs of tension, and If traders in stocks,
with long lines carried on margin, had
| been made to feel insecure by knowledge
that brokers' loans had increased 70
three times their amount in the depths
Of last years liquidation this situation
had no apparent application to the in
vestment outlook. Stocks fell and evil
IDENTIFY had been edging off for some
time, for the reason that too many
traders had too many shares and poured
them out with dispatch as soon as prices
became weak. The advance of prices.
which proceeded with few Interruptions
from August to the middle of April, had
PRINTED the upbuilding of a very slight
short account, and the absence of short
| covering purchases was felt acutely yes
| terday.
The over Sunday announcement that
the German loan was off indefinitely
had the effect of undermining specula-
| tive ventures in the exchanges and prob
| ably had bearing upon the reaction Of
| stocks and commodities. The markets
without question had hoped that some
way for funding part OF the reparations
payments would be devised thus light
ening the present strain upon fiscal and
private finances in Germany and assist
ing the allied nations with cash, bu: the
outlook for early action all along had
been considered uncertain. The mar
kets withstood disappointment over the
Genoa outcome with firm front, but at
that time speculation had not become
weary.
Cotton went lower under a heavy flow
of profit taking sales. furthered by sales
for the short account