Evening star., 1922-01-11
INDUSTR|ALSL
L|STlESS MARKET
Renewed Buying Of Oils
| Foreign Exchanges Are
? Lower.

Lower.
NEW YORK, january 11.-Features
Of especial interest were lacking at
the dull and uncertain opening OF
today's stock market Bethlehem Steel
was the only prominent issue to reg
ister more than a fractional change,
gaining 1 point. Most other indus
trials were lower, as were also oils
and rails. The market steadied within
the first half hour on renewed buy
ing of Mexican Petroleum. Prelimi-
nary foreign exchange quotations
were lower, especially French and
italian rates.
The recovery of Mexican Petroleum
was followed by advances OF to :
points in Standard Oil of New Jer-
sey. Texas Company. and Houston
Oil. Shorts next covered In equip
Snents. coppers. motors. food special
ties and chain store issues.
Advanced I to 3 Points-
American Locomotive. Railway
Steel Spring. American Smelling. Utah
Copper. Studebaker. Corn Products
and May Department Stores rose to
Crucible and Pullman were among
the few industrials to lag. Eries con-
Hinued to strengthen. but the railway
list as a whole was sluggish
Government bonds were active and
strong. all the Liberty group except
the third AIS and Victory 3Es scor-
ing new high records. Call money
opened at per cent.
Interest in Idle Money.
The principal interest again in to-
days markets centered in the various
manifestations of the great supply of
cities. No further reduction oc-
Cured in money rates themselves.
but the time loan market got more
definitely established on AZ per
cent level This rate applied to stock
exchange loans containing as col
dustrials, but borrowers who were
offering industrials and nothing else
Is security were readily accommo-
Hated at AZ per cent The banks
of the slender demand for specula-
tive purposes, to lend their valuable
balances to anything like the full.
In consequence. these unused funds
turned again into the market for
Rcceptances and into the higher quar-
tors Of the bond list
New Highs for victorys.
The entire group Of victory and liberty
bonds reached new high prices and
standard railway issues were up half
point or more all around
The stock market was dull during the
greater part of the time, but it was a
good deal stronger than many of the
experts had been figuring upon. The
professional rank and file had been bas-
ing their operations on the theory that
the reaction which started on the very
first day OF the new year would be car
fied considerably further.
They had been selling stocks short on
this notion and the result was that the
short interest gradually expanded until
1t reached at the outset of the present
week very respectable dimensions Both
on Monday and on Tuesday the market
had stoutly resisted all efforts to get
prices down. Here and there it was
possible to break Individual stocks. but
this did not have the desired effect of
precipitating general selling move
ment.
Short Interest Mfsgivings.
Today the short interest commenced
TO display misgivings as to whether
1t had not misjudged the market po-
sition- The advance, for the most
part. was confined to the highly
speculative issues In which bear"
traders had been active. Where there
was little or no short account to
work upon the rise was comparatively
small. It was significant that the oil
shares should have been among the
leaders in the recovery when another
all around cut of a cent a gallo, in
Standard Oil Company only this morn
ing.
OIL Shares Rally.
There was every indication as busi-
ness began this morning that the
short interest in the American oil
stocks had grown to large proper
tons. It was especially heavy in
soees SSeh GHmPaay aye aaa ses from on
bear standpoint because Of their
large floating supply. What hap
pened was that these short sellers,
who had been basing their attitude
upon an unexpected cut in Midconti-
rel reduction in Pennsylvania crude.
commenced to get very uneasy over
the prolonged delay in any such an
nouncement.
Texas Up Very Easily.
Texas Company. once short covering
started, ran up very easily. So did Pa
cific Oil and other members of the group
like Producers and Refiners. 1t was re-
called that when the oil market was ad-
vancing last fal the midcontinent ter
ritory followed the lead of the Pennsyl-
vania district usually within a days
time.
Now more than a week has gone by
since the first cut in Pennsylvania crude
and more credence was taken in the
opinion expressed in some quarters that
the Pennsylvania reduction was merely
q readjustment in an individual market
and not signal for a general decline.
Crucible and Mexican.
The market awoke today to better
appreciation of the anomaly Of Cru
chile Steel preferred's breaking ten
points and selling around 80, while
the common stock was OF compare
lively little. 1t thereupon set about
to rectify this situation, and Crucible
Steel common was the weakest thing
on the list from the start A similar
anomaly exists in Mexican Petroleum.
Here Is an per cent preferred stock
which sold today at so. down three
points from the last previous transact
tion and five points from the first Of
the year.
It is four points under California
Petroleum preferred. paying Z per
cent, and yet California Petroleum
common was selling today around A,
with Mexican Petroleum common
around 10s.