The Washington herald., 1922-04-05
STUDEBAEER DROPS
FIVE POINTS FROM.
DAYS HIGH FIGURE
Stocks Close Irregularly
AS Market Activity
BrOadens.

New YORK. April 4--Stocks
closed irregularly after a day OF
great activity with the range ot
mutations extending further than
has been the case in any recent ses-
sion The opening was strong.
with a number of new high prices
fotH the year established during the
first few moments of trading. After
the buying OF the first hour had ex-
hausted itself however. profit-tak-
ing, came into the market and lowe-
prices were the rule throughout the
entire list Studebaker's phenom-
email advance of the past few days
was =udely interrupted and the
stock broke some 5 points below the
high established in the morning.
A moderate recovery set in after
noon which resulted In most cases
inFthe recovery of the mornings
losses. but left the majority of Is
sues below the mornings high. Ad-
vances In the speciaities and sugar
stocks served to steady the market.
The. last hou- brought some re-
newed selling of the speculative
favorites. The feature of the con-
tinued strength in the bond market
was the strength in Libertys. five
OF the issues making new highs with
two of the long-term bonds reach
ing par. Call money. after opening
and renewing at ~. per cent. was
advanced to 5 per cent before the
ciose,2
-. Early Prices High.
Opening prices In today's market
n -
the past few days to new high
the steel and equipment issues. a
nunher Of new highs were estab-
listred in the first few moments OF
trading. Studebaker got above l1s.
Steel common was also taken in
Large blocks at higher prices and
there was great activity in the
stock during the morning hours al
though at prices below the high of
the frst hour.
Early reports that directors of
the Studebaker Corporation would
take no action on an increased
dividend were responsible for much
selling of the stock. which broke
nearly 5 points below the opening
figure before noon The rest of the
market, however. seemed very lit
tie Influenced by Studebaker's gy-a-
tiops, and even the other motor
shares were comparatively steady
during the morning hours.
Trading Ii Heavy.
The volume of trading this morn
ing was the heaviest in some time.
During the first half hour sales were
100000 shares and the first hours
turnover amounted to over $500
This is the heaviest trading re-
corded in a single hour in nearly
two years. Considerable profit-tak-
ing was apparent in the large VOL
ume of transactions during the
morning hours and the list in
general lost ground. BY noon
the gains over yesterdays clos
ing figures had been nearly
wiped out. Market observers, how
ever. expressed themselves as sur
prised that the volume of selling lad
not brought more OF a reaction con-
sidering that the technical position
OF the market must have been great
" weakened during the advance of
the-past three or four days. With
more than seventy separate issues
establishing new high prices for
the year. as. was the case during
Yesterdays trading. certain
amount of reaction was regarded as
inevitable.
Liberty Bonds.
Holders of the long term Liberty
issues who have held their original
purchases had their faith and pa
thence rewarded this morning when
two of the long term bonds sold at
par for the first time since the
somewhat atificial trading in these
bonds Just after they were issued.
All the Liberty bonds have been
creeping up day by day for several
months and all the issues are so
close to par that the crossing of that
figure Is Of no practical Importance
but TO those who have not followed
closely the gradual easing of money
rates as reflected in higher prices
for Investment bonds such a deveI-
opment will be a concrete fact def
nitely illustrating the progress
which has been made. Incidentally,
many will regard the occurrence as
a tribute to the wise guidance given
government finance by the present
holder Of the Treasury portfolio.
Though call money opened this
noning at yesterdays closing figure
of 1-2 per cent, the easing OF rates
Tor time loans to the same figure
for all maturities indicated that
the surplus of funds over the re-
duirements Of trade and industry is
still growing and whatever tenn
porary causes may occasionally do
to the call money rate. the tendency
of rates in general towards lower
figures Is still going on apace. The
current week has been remarkable
in that II has given unmistakable
indications OF this tendency in three
directions First, the lowering of
rates on bankers acceptances to the
lowest point in the history of the
American bill market. then the low
ering CT rates for time loans and
nnally the crossing of par by the
long term Liberty issues.