Evening star., 1922-10-15
SPECTATORS BUSY
IN STOCK MARKET
Announcement Of Govern.
ment's New Loan Among
Features Of the Week.
BOND PRICES DECLINE
Interest in the Foreign Situation.
Money Rates Harden, Due to
Seasonal Demands.

NEW YORK, october 14.-Elimina.
ton Of the Turkish crisis, announce
ment OF the governments new ~
per cent loan, decline Of the German
mark to q new low record and dec
laration Of stock dividends by three
important Industrial companies were
the outstanding developments Of the
week in the financial markets. s..
Declaration of stock dividends re-
suited in a heavy speculation in
stocks. particularly in shares Of COM
panies holding large SURPRISES avail
able for distribution. In each Of the
three distributions, however. the best
prices for the shares were registered
just bfore the actual announcement
was made. Publication of the news
invariably resulted in q sharp de-
! cline in the stock. In the case Of
Standard OIL Of New Jersey. which
declared a 500 per cent stock divi-
! appointment on the directors an
tnouncement that no immediate in
| crease was contemplated In the az
gregate dividend.
! Decline in Bond Prices-
Bond prices lost ground as re-
suit of selling of high-grade railroad
and industrial mortgages as well as
the old liberties to provide funds for
| the purchase OF more attractive long
term tax-exempt issues. Active re-
sumption of foreign financing was
one of the features Of the week S
bond market.
| Commodity prices as a rule are
still tending upward, wheat being in
fuenced by reports Of shortage in
(; foreign crops and cotton by the re-
sumption OF buying. suspended by
| the near east crisis. Coppers are
softening slightly. due to a lessened
domestic demand. and the usual sea
sonal reductions are now being made
In the price OF gasoline.
Interest in Foreign Situation.
i Interest in the foreign situation
! was centered on three important
| events-signing OF the armistice in
the near east. beginning Of service on
| the British war debt to this country
and the further collapse in the Ger
| man exchange rate. Great Britain's
| full payment on the debt will be Mon
| gan & Co.. will turn over $780,
| 100000 to the federal government.
approximately half Of this represent
Ing the proceeds In the shipments OF
gold sent here in the last few months
for the account Of the British treas
| ury. Despite the German presidential
/ decree forbidding speculation in ex-
, change and the tremendously week
~ increase Of. more than $1,000. .000.-
900 marks in note circulation. the
mark continues to fall and the cur
! rency shortage in Germany persists.
Local exchange dealers are OF the
opinion that settlement OF 3he repara-
tions question and balancing OF Ger
many's internal budget must be ef-
i fected to insure stabilization Of the
mark.
-. Norwegian ExchAnge Jumps.
Announcement of the sale OF an
| $4,000, 900 bond issue by the Nor
westan ,sovernmett 70 The; National
City Company and an award OF The
! Hague tribunal Of $4,000. 900 against
| the United States on claims arising
out Of the seizure Of Norwegian ships
i during the war, were followed by q
sharp advance Of forty-four points in
| the Norwegian exchange rate. nearly
half of which was cancelled today.
Seasonal demands for money re-
: suited in a hardening Of the rates. A
furry In call money. which sent the
rate up to s per cent. was due to the
calling of loans by local institutions
and the withdrawal OF funds by out
Of town banks and the government.
The closing rate for the week was
| AZ per cent. Rediscounts with the
federal reserve banks. and both the
note circulation and deposit liabili-
ties with these institutions. are in
creasing, but it is generally believed
that sufficient resources remain to
make a further sharp rise in rates
| improbable during the next few
months