The New York herald., 1922-12-19
FINANCIAL NEWS
AND COMMENT
Selling Of Contracts of Stock
Exchange House That Fails
Biggest Market Factor.

] Aside from heavy selling OF some
large blocks Of stocks. particularly in
the oil group, which probably repre-
sented the liquidation OF contracts OF
the Western Stock Exchange firm
which faHed yesterday, the stock mar
ket was a rather dull and unintcrest-
ing affair Developments affecting in
dividual issues were responsible for
most of the movements which went be-
yond the narrow limits OF the general
list.
The railroad shares were very much
unsettled and there was tendency to
ascribe this condition 10 the lower divi-
dend rate established bv the board Of
directors OF tho Great Northern Rail-
way. That however, was not quite
true for the Street has been talking for
la fortnight of SIS rate on Great North
ern. Ii the decline in the rails was due
10 the Great Northern dividend action.
il was because professional spectators
seized the opportunity TO depress tho
entire group.
by far the biggest factor In yester-
days market was the selling of stocks
for the account Of the New York Stock
Exchange house which suspended trad
ing. 1t was particularly noticeable that
very large proportion of this kind OF
selling was done in the oil stocks in
which the spectators OF the middle
west and southwest, where the firm Is
located, most frequently operate. In
the face of This heavy selling It was
generally felt that the market gave
pretty good account OF itself.
The gyrations OF Fisher Body common
stock furnished some degree OF inter-
est. After advancing to 215 for a gain
OF about four points this stock broke
on reports that a corner had been es-
tablished and hints of official action
to break it. At the close tho price
stood at 2Q3, a loss of more than 8
points from Saturday and of IL points
from the high of the morning.
| In the cotton market theie was con-
siderable activity and no litde strength.
Most options closed substantially above
the 26 cent level, The grain market had
a sensational rise. December wheat adj
yancing 3ss cents above Saturdays close
10 a new high record for the year at
i.27as. Al this figure wheat showed a
\ gain from the years low OF more than
I 20 por cent. At the same time the May
/ option jumped two cents n bushel to
above LES, and the July position got as
high as 1.l6ia. Corn and oats were like
wise strong. The extraordinary strength
iu wheat was, like the weakness in the
sock market. attributed to the failure
OF the Western brokerage firm. which, it
was said. had some large outstanding
short contracts in wheat which we're
covered yesterday.
The November foreign trade figures
made public yesterday exerted a power
ful influence in improving sentiment.
! Exports amounting to moro than 1884,
ooo. 900 stood very much above any other
month this year. showing $4,000, 900
gain as compared with October and Of
nearly $s0,000,o0o In contrast with No
ycmber OF last year. Representing AZ
Il does the first report OF q full month s
| trade since the new tariff schedules be-
came effective. the high rate of exports
In the November statement rather hold
up TO ridicule statements made a few
months ago declaring that the high tariff
would have a decidedly adverse effect
on our trade abroad. Nevertheless. the
feeling etiii prevails among those who
have given the foreign situation close
study that unless there is some modifca-
tion OF the present tariH American for
eign trade eventually will suffer IRE
parable injury.
The stirening OF the call rate ycster-
day 10 per cent. reflected "a temporary
I stringency OF funds here caused BY the
tremendous Government operations OF
iast week. The bond market was dull
/ iis only outstanding feature being the
weakness OF ~. Paul issues Liberty
bonds were in demand at higher prices
Foreign exchange rates moved narrowly
with most changes showing declines.