Evening star., 1922-12-06
TREASURYREPORT
AIDS STOCK PRICES
Mr., Melons Message Causes
Inward Turn After Many
Early Declines.
~ STUART r. WEST.

three chief incidents in the f,nancia'
situation today were the continuous
strength of United States govern
ment bonds. the further rise OF ster-
ling exchange and the notable re-
marks of the Secretary of the Ireas-
ury on the business and financial po-
s,tion Of the country contained IN
his annual report to Congress.
In part, the buying of liberties. no
doubt, was the January reinvestment
demand In it's incipient stage. but
more largely it followed the Presi-
dents revenue message on Monday
setting forth the reduction in gov
ernment expenditures and fofe
shadowing a surplus during the next
fiscal year. The significance OF this'
Of course, is that beyond the ftnanc-
ing mentioned today by Secretary
Mellon to take care Of maturing OBJ.
ligations, there will be no need OF
any future government loans.
Mellon Tax Plan Discussed.
We'll street could scarcely attach
much practical Importance to Secre-
tary Melons suggestion that sur
raxes be reduced to maximum OF
will he for the new Congress to de-
termine, and in the new Congress the
radical element opposed to any such
action will have the balance OF pow
er But encouragement was 70 oe
found In the Secretary review Of the
present business position. in which
he emphasized the rise in commodi-
ties, the reductions in inventories.
the increase in the volume of trade
and the full employment Of labor.
cal predictions regarding the Eu-
ropean situation he refers to the
waste of war being repaired and
signs of progress in economic resto-
rations having appeared abroad
Message Helps Market.
The stock market went up after the
publication of the Treasury message.
whereas previously 1t had been dls.
posed to sag. Professional traders at
the outset of the day renewed their
efforts to force decline. They met
with some temporary success among
the railway stocks. which were more
or less unsettled by the prospect of
Northern dividend and the consequent
weakness in this and other of the
northwestern railway shares. but In
the end operations for lower prices
the subsequent recovery a good part
of the Industrial lists more than re-
gained its early loss.
Motor stocks were the leaders in the
Observation-Disclosures Hupp. Moon.
Chandler and Pierce-Arrow. The pro-
fessional view of this movement was
that II was getting ready for the
traditional demonstration preceding
the new year with its annual automo-
!, bile show and its thrush of new
orders.
Cuban American Sugar.
Cuban American Sugar Company re-
ported its income for .n the he, fiscal Year
net profits applicable to the $1O.-
100000 of $40 par value common stock.
after all charges and preferred dtrl-
dends, equivalent to $1.47 a share. 1t
is understood that the depreciation
charges were liberal. These results
compare with a net loss against sur
plus of over s7,000.oo0 In the previous
fiscal year
Because of the restoration of divi-
dends on Kennecott Copper AMI other
current happenings in the ccpper In !,
dustry. unusual interest has attached
to the Forthcoming dividend meetings
Of the four leading high-cost por-
phyry copper producers-Utah. Ne
vada. Chino and Ray-which will
probably be held Friday.
dend will be raised above the present
s3 annual rate. or that payment will
be resumed by any of the other three.
The results for the third quarter of
1922 showed that all OF them have
begun to make money. notwithstand-
ing high costs and operations far be-
low normal.
Punta AIleEra Sugar Strong.
With raw sugar selling around 80.
the Punta Ailegra Sugar Company
stands to show profits OF between 20
and $6 a share on the 100000 shares
outstanding. This also is after al
lowing for sinking fund provisions and
l. tnHn -
prices costs will advance. BY the time
the new 1928 crop of sugar enters
the market Cuba will be entirely free
of any carry over.
For this reason sugar experts inquire
that current price levels will at least
be maintained.
Reaching $4.57 at one time today
for the first time in nearly four years.
sterling completed a rise OF nearly
cents within week and OF nearly
20 cents from the low OF the autumn
This upward movement Is quite the
most prolonged of any since the re-
markable advance in the early part
of the year. 1t shows that with
passing of the season of heavy staple
shipments and with no pressure as
yet from corporations FOR the next
interest installment on the American
war debt, the sterling market Is re-
spending readily to the influences
which are logically carrying 1t back
to the pre-war footing.
The stock market for the first three
hours had been the dullest and
stupidest that Wall street had seen in
months The abrupt change into a
lively buying movement which char
acterized the last two hours was to
be explained simply one one ground.
and that was an overSold condition
within the market itself. For days
the professionals had been pounding
away trying to get prices down. They
had been able to give the list at
times an appearance of heaviness and
even weakness. but it was only an
appearance.
What really happened was that no
liquidation was brought out and that
the short interest was increased 50
that 1t had reached uncomfortable
Dimensions.
Whom short sellers awoke to the
truth that they were going to fnd
dif1culty in covering in their COM
started to bid for stocks with con-
siderable urgency. The rise began
with the motors but quickly spread
to other directions.
Big Gains in Half Hour.
The Pan-Americans rose violently.
Wall street recalling intimations re-
Gently made of a large extra cash
dividend on Mexican Petroleum.
Stocks like Bethlehem Steel and Cru
cible Steel. which had seemed to be
so sensitive on previous days to
half hour what 1t had taken a week
to lose. Even the rails came back
quite readily.
MONTREAL BREAKS ALL