Evening star., 1922-10-23
STOCKS SELL OFF
IN BEAR ATTACKS
Technical Position Partly
Blamed for Break After
Strong Opening.
By STUART p. WEST.

Special Dispatch to The Star.
! NEW YORK, October 23.-The day. s
break on the stock exchange could not
be set down to any one cause. but
rather to a combination Of causes
| One Of these was the further extreme
weakness in French exchange. which
directed attention again in a rather un-
pleasant way to the uncertainty of
French finances. Another was the
slackenins Of the Investment demand.
which has been q noticeable feature all
through tho last month. Finally. there
/ was the position within the market IT.
self. undoubtedly weaker because of the
extravagances Of the recent specula-
tion in industrial stocks. founded upon
rumors Of stock dividends. which were
| either premature or else made up out
| Of whole cloth.
Bear Raids start Early.
or these influences the speculative
of high priced Industrial shares dur
ing the last few weeks had alarmed
conservative sentiment and still
further alienated public support In
these the buying power, or. better
the resistance which the market was
|capable of holding to professional at
tack, had been weakened. Specula-
tors for the decline started in soon
after the opening this morning to
find out Just how vulnerable the mar
ket position had become. They began
by offering down the shipping stocks.
because OF the court order upholding
the Treasury ruling In the liquor
transportation case.
They pressed down the motor stocks
with considerable violence, although
there was nothing to warrant this
outside of the showdown which the
MI fNH - n a lfnyny a. 1,ys
season of the year. Encouraged by
the quick success attained in these
directions. the selling movement was
extended until. In the early after
noon. 1t became fairly general.
Shift in Funds Felt.
There was not the slightest grounds
for supposing that the fall In sticks
ing the business outlook Of the coun-
try or that 1t was due to disappoint-
ment because the recovery was not
making better progress. On the con-
trary the stock market in some de-
gree has felt. like the bond market,
cial channels. which up to month
and a half ago were available for in
vestment uses.
There has not been the actual
liquidation of stock investments as
there has been of bond investments
due to increasing trade activity. But
the element of investment support.
which all along has been very helpful
to the stock market, is not what II
was up to the middle Of September.
French Francs Weaker.
The weakness of French francs was
more pronounced than on any day so
far. Not since the first week in De-
cember. 1921, when the rate touched
6S8, has the market been so low. Tn
doubtedly the decline during the last
fortnight has been due chiefly to the
fear of unpleasant disclosures when
the chamber of deputies begins its
discussion Of the 1923 budget, as 1t
will do this week.
The selling Of francs had a disturb
| ing effect upon the other European ex-
| changes. Sterling was of cent and
hah from Saturday and nearly cents
from last weeks high. but this was
| scarcely more than the normal reaction
| Of highly speculative market. follow
| ing a sharp advance. The money mar
ket began the week In comfortable
! shape. with most of the Wall street
loans arranged At ~, per cent; ,o
| ment bonds were not affected this time,
as they often have been in the past by
the course OF exchange rates. For the
most part the low points in stocks were
| made in the late afternoon.
| Leaders Dovvn at Close.
| In the closing hour such speculative
| leaders as Standard Oil of New Jer-
sey, Baldwin Locomotive and Stude-
baker were off to ) points. even as
| compared with their opening quota
tions. Steel common was selling 5
| points below its high of a week ago.
These were pretty generous declines
and must hae gone far toward cor
recting the weakness in the specu-