Evening star., 1922-02-24
STOCKS IRREGULAR:
UNDERTONE FIRM
Rails Are Active, Pressure on
the Steels Is
/ Marked.

-NLW Aokh. February Hi-A nine
hoInt drop in Republic Iron & Steel
preferred. following the suspension of
me dividend, was the spectacular
feature at the irregular opening of
9oday'S stock market. Republic COM
mon lost I'll points and affiliated is
sues were lower by large fractions
to one point. crucible and I.acka-
wanna rejecting distinct pressure.
Rails and shippings strengthened
under lead of Canadian Pacific and
United Fruit, but the trend among
active specialtieS and miscellaneous
issues was downward.
preliminary foreign exchange rates
eased on covering of speculative con-
tracts.
Early Tradin. LOSSES
Independent steels sustained further
losses during the morning and Gem
eral Electric. Studebaker and the To-
baccoS eaSed
The market became firmer before
noon, under the influence of invest
ment and speculative rails.
Canadian Pacific. Delaware. lacka-
wanna and Western and Rock Is
land rose , 10 points. and other
tranScontinentals and coalers aver
aged onepoint advances. Market
Street Railway prior preferred rose
4Ss on declaration of an initial divi-
dend.
Motors and kindred specialties oils.
notabl Mexican Petroleum and Cali
fornia Petroleum; chemicals and mail
order and chain store shares also
were in process of further aceumu-
lation.
Call money opened and renewed into
next week at 5l2 per cent.
All Markets Under Test.
All the leading markets-stocks.
grains, cotton and eXchange-were
subjected today to a further test of
speculative realizing sales. The stock
market gave the best account of it
sell: while the reaction was Sharpest
in the exchange. The sharp recoil in
sterling and in francs will no doubt
give some encouragement to those
who have been maintaining that the
TecenE advance was largely the result
of speculation, but this view would
not be warranted by any such de-
Cline as occurred today.
Speculation has been factor in all
the great swings which exchange
rates have been through. but in the
end it has always proved of minor
consequence Sterling. on its first ad-
vance early in the month. got up to
4,3Sst. 1t reacted within the next
week to 4.32I. This. as subsequently
established. was merely a surface va
ration in strongly advancing mar
ket. Today,s downward turn could go
conSide- ably further and yet be class
ed similarly as superficial.
Underlying Strength.
The strong forces underlying the
present stock market were demon
strated once more in the face of the
passing Of the dividend on r.
public Iron and Steel preferred 1t
was made clear that this action has
not been fully expected, as the stock
dropped' points at the opening Of
business. Eight months ago it may
he imagined how an occurrence of
this sort would have upset the gen
eral list. But then the Industrial
movement had not reached the bot
tom of the hill.
A speculative market can adjust
itself to any amount of bad trade
news or unfavorable dividend action.
provided it feels sure that the worst
is over and that better times lie
ahead. Today, as has happened so
many times of late, the action of the
Republic Steel directors passed al
most unnotfced in the general list
outside of the steel shares. Even the
steel group went down comparatively
little.
Busy With Rails and Oils.
There was a brief pause at the start
of business to see what effect the
republic episode would have. Then
operators for the rise got busy again.
directing their energies particularly
TO the railway shares and the AmerI-
can oils. 1t was perfectly apparent
that the sudden increase of acIIvi-y
at rapidly advancing prices in a stock
like Rok Island common, was not
any spontaneous buying movement.
But the important point was not
the prominence of pool speculation in
bringing about such results, as the
fact that real holders, even with the
temptation of very recent ten-poiat
rise, were so disinclined to sell
The market for the oils was evil
IDENTIFY taking account Of the facI that
the decline in midcontinent cru,ie pre-
dicted more than a month ago, had
not materialized and that the time
was drawing near when ordina rily
the demand for Oil produts begins 10
expand.