The New York herald., 1922-12-29
FINANCIAL NEWS
AND COMMENT
Heavy Selling to Establish
Tax Losses Results in Broad
Stock Market.

The December advance in the stock
market. peak prices Of which were
reached on Wednesday. has been i'm
portant enough TO weaken the technical
position of the market and render ii
vulnerable TO unfavorable Developments.
The situation in the Near East became
filled again yesterday with possibilities
and received more serious consideration
in Wall Street than it probably deserved.
The sudden departure of the British
fleet for Constantinople was used as an
excuse to sell some of the most active
stocks and for a time the market dis
played considerable irregularity. That
this news was just an excuse to sell
stocks was apparent. for II was fairly
definitely known on Wednesday that
British ships would again be sent to
bring the Turkish commanders to a
proper understanding of their position.
Wall Street does not truly believe that
the political jockeying now going on be-
tween nations in Europe will result In
another war.
If any real basis for the belief in an
other war existed II would have been re-
flected in the wheat market. During the
last Near East war scare. when the sit
uation was indeed more dangerous. the
wheat market advanced sharply. In the
wheat market yesterday there was little
buying power and prices closed under
the final quotations on Wednesday. The
cotton market was only moderately
active and prices closed lower.
There was not the fantest suggestion
of war. scare in the foreign exchange
market. Sterling was slightly, lower
but the Continental exchanges showed
some Improvement. The foreign news
was also completely ignored by the bond
market and foreign bonds were steady.
Because of the large number OF
stocks traded in yesterday it was ap-
parent that there was considerable sell
ing for the purpose Of establishing Fed
eral tax losses. Trading was as broad
as on the previous record day, Noyem-
ber IA, last. when transactions were re-
ported in 492 different issues of stock.
This tax selling was most pronounced in
the lower priced stocks which probably
was due to the ruling forbidding the
repurchase OF securities thus sold with
in 80 days. The chance of not being
able to replace their holdings except at
higher prices month hence probably
kept those holding more desirable is
sues from unloading. Thursday was the
last day on which tax sales could be
put through except for cash.
The heaviest selling of stocks was
seen in the last 45 minutes of trading.
Most of the pressure was exerted against
such stocks as Baldwin Locomotive, Cal
ifornia Petroleum, the Standard oils,
StudebalSer and Steel common. a few
re- a,yfl,
particularly Delaware. Lackawanna and
Western, which declined points and
Reading. which dropped more than l
point. In the case of the latter stock the
selling was caused by disappointment
over the published report on the Read
ing segregation plan.
Important losses were recorded in the
industrial specially list and included Du-
pont. off points. American Car and
Foundry. off 3, American Radiator off
3, American Zinc preferred, off go.
points. Burns Brothers \, off 2. Fisher
Body off 3 ~ Houston oil. off 2. Hy-
draullc Steel preferred. off g. Kelsey
Wheel. off 212. Otis Elevator, off and
Otis Steel preferred. off 3.
Among the issues showing advances
at the end of the day were American
Telegraph and Cable Associated Dry
Goods preferred. Chicago. Milwaukee
and st. Paul preferred. Cluett- Peabody,
Maliinson. May Department Stores pre-
ferred. Endicott Johnson, North Ameri-
can Company, Lorillard and Worthing-
ton Pump preferred.
The Federal Reserve statement
showed a decrease Of about s5.500.00o
/ in total gold reserves and about SS,OOe.-
600 in total reserves. Bills discounted
! increased about sl5,0c0,0o0. Fedora
! Reserve notes in actual circulation in
4 creased by about s7.000.000. Cal
money opened and renewed at per
cent and then advanced to 5A pei
cent.