The New York herald., 1922-01-27
FINANCIAL NEWS
AND COMMENT
Bearish News Weakens Stock
Market-BOnds Soft, but
Victory 3 3-4s Gain.

Considerable material OF use to par
prices was found in yesterdays news
and events. and consequently the market
turned from an uncertain to weak
trend in the AFTERNOON. 1t was the most
extensive reaction since the drifting
period of the first week of the year.
The action of industrial issues, especially
steel. oil, copper and sugar shares, sug-
gested that speculative sentiment re
NAMED in a highly sensitive state in re-
spect to income accounts OF 1921, which
have begun to appear in quantity. and
that the market was no more immune to
unfavorable figures, although they were
expected. than it was to the record of
reduced dividends of last spring and
summer A bright spot in the days in-
dustrial news was supplied by the Beth
lehem Steel Corporations statement.
showing that its common stock dividend
had been earned with a comfortable
margin. but the report, no less than
others, stamped last year as highly un-
satisfactory. The report was made pub
lie after the markets close and was not
reflected in the days operations.
The array of unsettling news con-
tanned these items: Comment on the
fall of cents pound in crude rubber
in the last few days, postponement Of
action on the Consolidated Gas Com
pany's quarterly dividend until the ex-
ecutive committee can consider it next
in the program for one OF the steel COM
pany mergers. deficit of more than
$500. 900 by the Anaconda Copper Min
ing Company in the first nine months
of 1921 and evident determination Of the
Congress to pass soldier bonus legisla-
ton. Such an array of bearish informa-
tion and supposition was more than pool
operations could offset by imparting a
show Of strength to specialties, and a
heavy flow of short sales was evident In
late transactions. Many industrial
stocks left off point to more than
points lower than they did on Wednes-
day. The speculative situation was
helped in no way by an upturn OF the
per cent, with final quotation OF 51a
per cent.
l. That the markets action TO degree
recorded natural flare back from the
recently overdone speculation for the
rise Of particular stocks was indicated
In the comment of the market place.
The fact of poor results of manufactur-
ing companies in 1921 had been made
clear long ago and seemed to be fairly
well discounted in the decline OF last
summer and early autumn. Those mat
ters were taken into account b. -.ore
far sighted followers of securities, and
by them the days retreat was not con-
sidered as really reflective OF new and
trial conditions.
Victory 3s4 per cent. notes reached
upward to a new high point at 100.2S
and the Az were firm, but bonds gen.
orally were again soft. Cotton suffered
a fairly sharp reaction, the options fall
ing As to So points. 1t appears as
though British mill calculations about
the demand for their goods have been
revised downward somewhat Of late and
operations have been reduced. That de-
velopment. supplementing the closing OF
certain American mills by strikes, ha:
emphasized the certainty that the lass
crop will approach. IL 1t does not exceed,
100000 bales, a total 100000 larger
than was looked for in October.