The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-01-26
fIRST REACTION
0F WEEK COMES
N WALL STREET
NJ STUART p. WEST.

New York. Jan zo.-Tne STOCK
| sz.-xat today bore out the indica-
=. nbseryed at the close last night
800 the position for the moment
- heen weakened by recent heavy
'sa,t covering. For the first time
week a reaction worthy of the
n.ne occurred. For the most part
ms simply the adjustment OF q
tentative situation which called
I - a setback because there were
aa attractive profits accumulated
= traders hands. But the decline
- helped along by outside con-
'sss,ations as well. More sensi-
.svsness was shown to earnings re-
scrts for 1921 which were coming
~ in quantity. Most of these were
~ had. notably the statement for
ss first three quarters by Ana
snnaa Copper. The deficit OF S.
sso0o shown by this company
srought heavy selling into the cop
ver group.
Tse oils were quite as weak as
ne coppers, but here the reason
sz@y not in actual developments,
M. in the expectation, now very
ssneral. that there will be further
"a more widespread cutting OF
rrude oil prices in the near future.
me fact that the December rail-
vav statements thus far published
have not been showing up as well
a. those of November and not near
" as well as those of October, told
again in the railway list. Both the
dividend paying and the low priced
nou-dividend issues were persist
entity heavy. AS the day went ON,
+ these weak spots became numerous
I enough to weight the whole mar
ket down. Equipments, sugars and
{ steel broke with the rest.
studebaker ran up sharply soon
,ter the opening but came down
later, still more speedily as did
the other motors.
81 German marks, after yesterday $
brief respite, again turned down.
Z ward. 1t was rather surprising in
3 This connection that so little atten-
= ton should have been paid to the
project, sanctioned by the German
Z premier for a force loan of bill
g lion marks in gold. If this method
Of raising funds to meet the
2 future reparations installment is
. approved by the German Reichstag
80 that it will be a precedent for
further transactions of the same
IS sort, it will undoubtedly mean the
end Of the imitation of paper note
issues.
- The most significant feature in
z the English and French bank state
{ ments was the further progress in
: both instances in the defationary
% movement There has been only
one week in the last two months
that it has not seen the Bank Of
France reduce its circulation. Also
the government continues to pay of
slowly war advances by the bank
This item came down during last
week $50, 900, 900 francs.
For the third successive day cot
ton prices declined but today'S
break for the first time was really
Violent The cotton market, at the
beginning of the year had fully abb
sorbed the shock of the discovery
that the governments October esti-
mate of the new American harvest
was 100000 bales too low. But
il made the mistake of INDUCING
in too much hope regarding the i'm
mediate demand for cotton goods
both at home and abroad. What
has happened during the last week
! is the natural revulsion of senti-
ment following the discovery, not
only that the goods trade at home
is not as active as il was, but that
English spinners are no longer
keen to buy but are discussing cur
tailment at the mills. The Egyp-
tan political crisis has a bearing
upon the English situation.
The action of the call loan mar
ket was peculiar. At the opening
the renewal rate was marked down
rom 3 TO AZ per cent, showing
That in the judgment of those who
nx this quotation each day, the sup
ply had increased sufficiently over
what 1t was early in the week t.
warrant some concession to bor-
roWers. But in the afternoon the
rate on the new money was sud
denly raised. first to and then to
per cent, and this advance was
SO simultaneous with the increase
vi me selling movement on the
stock exchange that it was hard to
%old the notion that the two Incl
dents were related.
one or two other Developments
besides the rise in money contrib
uted TO the unsettlement in the late
ueaAngs. One of these was furth-
er weakness in the crude rubber
market in London, which resulted
"a drop of some 5 cents a pound
~ rubber prices. This naturally
ieu 10 some rather active selling
VI United States Rubber and simi-
Iar issues. Another happening
WHICH had an unfavorable effect
was the action of the Consolidated
vas board in referring the question
~ a dividend to a special commit
yet, which has the power to decide
- .'netner or not a payment at this
esSuue Is advisable. when the supreme
.ourt has not been heard from on
e decision as to the validity OF
ne $l.25 gas rate. This led to a
rery sharp break in Consolidated
uas STOCK which dragged along the