The Washington times., 1922-10-29

cOrrectlVe turn OF Jne
direction of its movements are
The general impression In the
speculative district: has been that as
the market has had a good recovery
from the comparatively low prices
prevailing in the first part Of the
month. had INTACT raised the aver
age price level to higher point than
the previous peak of September II,
q reaction was clearly in order. On
THIS assumption, and from the van
tage point of the new high price
level that had been established, pro-
Iesionals began to put out short
hnes; and not unnaturally, holders
OF long stocks who beheld their paper
profits slipping away, were not slow
to Join In the selling movement. But
rs the majority Of speculative lead
rers are still committed to the bull
side Of the market, this selling was
the real basis for the recovery that
featured the closing sessions Of the
week. Xxx.
Rails In Demand.
BY far the best showing this week
has been made by the railroad stocks.
They have not been nearly as spec.
tacular In their movement, but have
followed q consistently upward
course, and have at all times been
In favor with traders who have be-
come suspicious of the skyrocketing
tactics Of the oils and industrials.
New high price records were hung
UP by a small pumber Of the rails.
the most prominent being Reading.
while others duplicated their best
ume Of business.
this week in the shipping stocks,
the chemicals, and a small number
of the individuals. Mexican oils
went into higher ground, but Stand
ard Oils continued their reactionary
trend and closed the week with a
loss. Coppers held well in the de-
cline and pushed forward with the
market at the proper time. The
motor stocks made a poor show Of
resistance to the heavy selling in
this department, with the possible
exception of Studebaker, which was
said TO be under inside accumula-
ton on anticipation of the con-
stinuance Of the special dividend. in
addition to the regular 10 per cent
dividend which was insiguratedTb by
the directors at their last quarterly
meeting. Steel stocks fell away
somewhat abruptly in the first part
of the week, but they were in the
forefront in the subsequent recov-
cry. The steel trade, as revealed
in the semi-annual meeting Of the
Steel and Iron Institute this week,
is now in excellent condition and
production Is proceeding at an av-
erage Of 75 per cent capacity.
There. has not been hacking a
considerable element in the finan'
cial district who appear to be con
vinced that the bull market OF
1922 has been terminated. They
are not taken seriously, seeing that
the business revival has hardly
gotten under way: but it requires
q difference Of opinion to make a
market.
Bond Market.
The recovery which featured the
market did not extend to the listed
bond market where irregularity
continued right up to the close OF
the week. The steady drop in
prices of high class investment
securities, including government
bonds, has been somewhat OF a
mystery to the financial district
and various explanations have been
Forthcoming. Those who apply the
law OF supply and demand to Gov
ernment bonds should remember
that this latest issue Of Treasury
4h's does not add to the indebted
ness of the Government as II is
4
New bond issues during the past
week aggregated about $4,000, 900
with public utility bonds in the lead.
THE largest issue was that OF the
sI2 .OOO. 900. five per cent bonds of
the New Orleans Public Service, Inc.
New railroad bonds amounted to
s3.s75,000, State and municipal to
sIabO0, 900 and public utility 10
S1s.O00,000. Twenty-Five separate
municipal bond issues were success
fully fioated this week.
Other outstanding features Of the
mast week were:
The decline In continental ex-
chang to the lowest points in the
wear. in some cases for over two
years, the advance in domestic call
inan rates, due to the shifting Of
funds away from New York: con-
tinued expansion of trade activity as
renorted by all the important
mercantile reviews: publication of
a number of reports Of railroad
earnings for the month Of Sep.
tember which, for the most part
are not as favorable as had been
sxnected. further advances in com.
modify prices, more particularly in
textiles; general criticism of our i'm.
migration laws by leaders of Ameri-
can industry who state emphatically
: That their activities are being handi.
capped by the shortaEe Of unskilled
labor; increase in the buying of
manufactured products by jobbers
and large retail establishments.