Evening star., 1922-10-26
WALL STREET LIST
IN VIOLENT SLUMP
Bears Continue Pressure
and Many Standard Shares
Drop Heavily.
BY STUART p. WEST.

by Special Leased Wire to The Star.
NEW YORK. October 26.-Further
heavy selling of United States gov
ernment bonds. softness in the invest
ment bond list generally. another
sharp decline. followed later by re-
covery in the foreign exchanges. and
series of very irregular price
changes in stocks-these were the
main incidents in the markets today.
Wall Street "Benrish."
The stock market was repetition
in most respects of the markets IT
the previous days. The same profe T.
sional initiative which two months
ago was continuously directed to put
ting prices up was persistently ap-
piled to putting prices down. Wall
street had no better explanation to
offer for this thar that sentiment
was bearish." There was no pretense
that the selling had to do with out
side developments. 1t was merely
the result OF the discovery on the
part OF the professional element that
the line of less resistance lay for the
time being on the downside.
This was the sequel of the over
speculation in high-priced industrial
stocks which were SO active in Au-
gust and flared up again under the
stock dividend excitement during the
early part of October. These opera
tions had frightened the public and
induced many conservative holders of
stocks to sell. 1t was this change
within the market itself, rather than
any recasting of views regarding the
outside position. which was accounta-
Bile for this weeks decline.
Chandler Holds STEADY.
Motor stocks for some time have
ceased to move as group. Chandler
Motors. below so. has undoubtedly
been well bought by people who have
faith in the assurances from inside
quarters that the dividend Is safe
This sort of buying occurring in a
market where there is a large short
interest mas kept Chandler steady de-
spite the drop in Studebaker and the
special weakness in the Pierce-Ar-
row stocks. The pressure against
studebaker has been very persistent
and was one Of the features of the
market again today.
With Norfolk and Western and
Pennsylvania setting the pace g re-
CARDS dividend disbursements. the
feeling. is more than ever pronounced
that the Lehigh Valley directors at
their meeting within the next six
weeks will do something more for the
stockholders This something more
as the financial district has it all
along. would be an increase in the
regular rate from SO to IS per share
New Stock ON Big Board.
One Of the newcomers on the stock
exchange today was the stock of the
Van Raalte Company. Inc. This COM
pany is in the same line of business
as Julius kayser and Mallinson, but
without the large capitalization Of its
two competitors. There were listed
$4,000 shares of stock of no par value.
Earnings OF the company are reported
in excess of 500 share.
1t Is easier to understand the weak
ness in liberty bonds than the de-
cline in the United States Ans. which
at one time today were down more
than half point. The selling of
liberties by banks and corporations
is plainly due to the larger need for
credit and working capital in indus
try. 1t is by no means, therefore. an
unfavorable sign.
Reasons for Bond Slump.
1t is quite inconceivable. however.
that investment institutions and cor
porations that may have subscribed
TO the new bonds less than a month
ago should be reselling them because
they had suddenly found more
profitable use for their funds in other
directions. Apparently the new gov
ernment loan. in the first place. is ad-
justing itself to the lower levels of
the liberty group and. in the second
place. is preparing itself for future
large issues of the same security.
At the extreme low touched this
morning, French francs were off
nearly cent from their recent high,
little more than a month ago, were
down 21s from their top of the year.
February. 1921. Italian lire have not
sold as low since October. 1921, nor
have Belgian francs since the first
week OF last December
The partial rally in the afternoon
in all these rates was undoubtedly
nothing more than the buying in of
contracts for the decline which regu-
larly happens in any speculative mar
ket after such rapid break as that
Of the past week.
Bank Report ENCOURAGING.
Some reason. however, may have
been found for the Slight turn for the
better in franc exchange. in the i'm.
provement disclosed in the weekly
statement Of the Bank of France. This
showed further contraction Of a.
100000 francs in paper note issues.
thereby, in conjunction with the de-
crease OF the previous week undoing
the greater part Of the billion-franc
imitation Of September. This last
weeks note retirement was again
made possible by repayment of 400
100000 francs by the government
Rails Finally Join Decline.
In the afternoon the selling move
ment was extended to the rails and
these were quite as weak during the
last hour or two as were the industrials.
The selling all through the market
reached its peak midway through the
afternoon. In the final hour there was
heavy short covering which brought
about something Of rally.