The New York herald., 1922-10-01
FINANCIAL NEWS
AND COMMENT
Developments Abroad Cause
Some Selling Unlike That
in Last Fortnight.

Although it IS recognized that the
major portion OF the downward move
ment in the securities markets within
the last fortnight was caused primarily
by a weakened technical position, and
that tie disturbing events abroad only
served as an excellent excuse for at
tack. it cannot be denied that the news
dispatches from the Near East in the
last two days have been sufficiently dis
turbing to cause some selling of secur-
tiles which had not previously made its
appearance.
Friday mornings cables were perhaps
the most unsettling marketwise. that
had been published IN this country, and
although the general list OF stocks on
that day rallied somewhat, the buoy
ancy which ample ana confident buying
power would supply was lacking.
Yesterday all securities moved lower,
a natural development after the display
of the preceding day. There were some
firm spots but those stocks which the
financial community is pleased to re-
gard as the barometers of the real mar
ket condition, including Steel common,
Baldwin and two or three others were
under heavy pressure all through the
short session. The customary week end
covering movement was absent, or else
the covering was accomplished with no
difficulty, for at no time did the course
=, 90 to hIIx eff lxC
Professional operations were again ap-
parent in the attacks on a number OF
issues, especially Mexican Petroleum,
which dropped 6 u points in the two
hours of trading. Other speculative fav-
orites, including United Retail Stores,
Republic Gron & Steel, Baldwin, Allied
Chemical,N Locomotive and others lost
from one to three points. Railroad is
sues were under more or less heaVy
pressure throughout the morning.
Other markets which are apt to reflect
critical political situations abroad gave
evidence of the same nervousness as was
apparent in stocks. Grain prices, al
ways susceptible to war talk, advanced
sharply, while cotton quotations declined
abruptly, losing in some cases more than
was gained in the sharp advance Friday.
In bonds the same factors were at
work and with the general list moving
to lower levels, a number of the foreign
issues We're notably weak. Unofi1ciai
press dispatches from Jugo-Slavia, de-
claring that King Alexander had met
death at the hands OF an assassin and
that the whole nation was in revolt,
added fright to holders of foreign Gov
ernment bonds and as a consequence
there was more selling of this type of
securities than otherwise would have
been the case.
Just where sound and sane discussion
of the possibility of a new war in Eu-
rope ends and where the silly and hys-
terical rawlings of timid, shadow fright
ened individuals begins are rather diff
cult marks to define in view of the haze
which has surrounded most news from
the zone of unsettlement. 1t also is
rather difficult for those who understand
to conceive of a big war when Great
Britain is perhaps the only European
nation which is economically able to
bear such a burden.
At the same time 1t is not unlikely
that the Turks are now In a frenzied
frame of mind, where clashes with Brit
ish forces, however small, would not be
entirely unwelcome. Such clashes un-
doubtedly would find sentimental reflec-
ton in American markets, whether they
were large and important or small and
insignificant, and II may be that what
recognition has been accorded the con-
ditions at Constantinople SO far in the
market has discounted some such de-
velopments rather than actual warfare
on a large scale.
Foreign exchange rates were easier
yesterday, but business in the currencies
of other nations was light and the re-
suits Of the days business furnished no
fair indication of the forces at work
there.