Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-10-16
STEEL PAGES LIST,
WITH SHARP GAIN
Profit. Taking in the Indus
trials, With Support
Evident in Rails.
BY STUART p. WEST.
.iaI Leased Wire to The Star.

r BY STUART p. WEST.
By:special Leased Wire to The Star.
NEW YORK, October 16.-The day
in the stock market began with an
other remarkable demonstration IN
United States Steel common. reflect
ing outside response to the intima-
tions that were going around wan
street on Saturday that a stock
dividend was by no means fmproDaoie.
With steel moving forward another
point and a half. on TRANSACTIONS OF
fidence was strengthened In the rest
of. the markets. 1t was. however.
very discriminating buying move
. ment. -
Outside of the steel stocks and a
few specialties. the tendency in the
industrial list was very much mixed.
Declines were quite as numerous, II
not more so. than advances.
Rails Supported.
AS usually happens when realizing
sales become heavy in the Industrial
leaders, the rails were taken In hand.
obviously for their steadytng enect.
New York Central got up to par again
Union Pacific, Reading. Atlantic Coast
Line and Norfolk and Western all
drew well up to their high points Of
the year.
The stock market again today was
not interested in much else than
considerations affecting the values of
individual stocks The idea of the
Steel Corporation as belonging to the
group of possible distributors OF
stock dividends made powerful ap-
peal to speculative sentiment ana
gave rise to further heavy buying of
the common stock. This notion would
not down. even when Chairman E. H.
Gary said later in the day that such
a distribution had not been discussed.
Much Activity In Oils.
Oil shares were actively sold early
in the session on further price cuts
for gasoline. but they rallied with
equal aiacrity later on. Pool oper-
were not as keen as on some other
days. yet whenever prices came down
at all these speculative syndicates
were evidently willing to o1er
prompt and effective support.
The most important incident in the
financial news over the week end was
the publication of the details Of the
subscription to the new government
loan.
To those who had thought of it's
being largely a refunding operation.
in the sense that the bulk of the
bonds would be exchanged for victory
notes and other outstanding short
term obligations. the announcement
was a decided surprise.
AS a matter of fact. of the total of
s1,550.000,000 applications for the loan
all but $50. 100000 came from cash
subscribers.
These will get the entire $500. 900. 900,
the conversion Of the victories and
within the next two months to be
taken care of by an additional issue
of the new Az per cents.
Loans Effect on Market.
The assumption. quite common in
investment circles up to q week ago,
that the government financing would
be merely an exchange affair carried
be no fresh tax upon the investment
resources of the country. But now
that this assumption turns out to
have been wrong and half billion
dollars is taken from the market
available for existing securities. new
light is thrown upon the sagging
tendency recently noted in the bond
list.
On account of the surtax provision
wealthy investors probably cut little
figure in the subscription. The fact
that the bonds were applied for three
times over mainly by small people
willing to pay cash. stamped the
transaction as really great popular
loan.
The success Of the new Treasury is
sue had, however. little perceptible
effect upon the markets today. Bond
prices as a rule were firm, with the
exception of liberties, which were
weaker. especially in the case of the
AS But there did not appear to be
any connection between the selling
of the liberties and the new loan. 1t
was due rather to continued liQuida-
ton of security holdings by banks
which are now finding an increased
use for their funds in commercial
channels.
Industrfals Under Pressure.
The strategy of the day on the stock
exchange quite apparently was too
keep railway shares strong as a means
of facilitating selling Of the indus
trials.
stocks like Great Northern preferred.
Louisville and Nashville. Atlantic
Coast Line. Lehigh Valley and Reading
well up to their best Of the year. were
the features in the railway section.
The selling in the industrials. espe-
cially during the last hour or so.
meant hardly anything more than
that. according to the professional
view. last weeks advance had in nu-
merous directions been too abrupt.
Such favorites as Studebaker. Amer
lean Locomotive, Baldwin Locomotive
and American Can came down 2 to
3 points.
Coca Cola was active. advancing
fractionally.
Call money was firmer again, with
the rate up to 5k per cent in the
afternoon. Foreign exchanges had
quite uneventful day. German mark
lost no fresh ground, which is In
teresting, but not necessarily sig
nificant