Evening star., 1922-06-05
GAIN IN STERLING
FEATURES THE DAY
Stocks Less Active-Merger
Enthusiasm Fades-0iIs
and TobaCcos Sold.
BY STUART p. WEST.

NEW YORK, June 5.-Nothing
else that happened in the mar
ket was as important as the ster-
ling movement How lageIy the jump
across the $3.50 level was due 10
speculative operations, based upon
the fact that London was closed for
business and the supply Of exchange
drafts originating from domestic
sources was temporarily small. will
not be made clear for another day or
so.
Undoubtedly the completion Of the
British treasury's plans to begin paw
mcnts on the American war debt, has
been strong incentive to fresh
speculation This speculation has in
view that Great Britain has balanced
its budget, has heavily cut down its
paper note issue and has converted
an unfavorablr balance of trade into
a favora BILE one.
In other words. II has either fully
or partly achicl cd the three most
important requisites for the restora-
ZION Of its cure ncy to normal value:
the reXlrn 10 the pre-wsr parity with
the American can he looked upon as
no longer remote possibility.
Speculation Less Active.
Speculative enthusiasm in the stock
market has been cDnsldera bly, less
ened.
This was obvious from the start OF
trading today. There was no grea.
accumulation Of nyer-Sunday buying
orders. such as tho Wall street pools
had been hoping for. Two explana-
tions stood out plainly for the ap-
parent indifference Of the outside
public
One was that the Wild performance
AT the close Of last week in some Of
the industrial specialfies brought a
recollection "f III" sharp check which
the speculative movement received
two months ago when under tbs
Leadership of the sam. highly manipu-
lated oil stocks
The other Was the disullisicn OF the
vast body of traders who had con-
ceived eNtravaEanr notions of what
the various mergers would do in the
way Of enhancement of market prices
The Steel Deal.
The testimony brought on the wit
NESS stand Saturday that the latest
steel merger stock. which came on
The market at 50. was the same stock
in which the bankers and lawyers
concerned in the deal paid 10 for was
calculated 10 have a SOLDERING in
fiuence.
At all events the former steel inde-
pendents and most Of the stock in
Volved in the tobacco merger we're
among the weakest on the list. The
trading qu!eted down as the day went
on. and this decrease in the volume Of
business. quite as much as the reduc-
tino in prices. bore witness 10 the pre-
ValiinE unCerta alnty.
Persisten; selling of Mexican Petro-
ieUr. Baldwin, Stude baker and the
indepe ndert steels Offset the benef-
in call money rates TO 3Ia per cent.
and although hullish efforts persist
I'd In a handful of stocks the main
tendency was downward in the early
afternoon. Mexican Petroleum eX-
tended its loss to AZ
Postum Cereal and National Enamel
ling broke 3I2. Republic Steel 2iz
and California Petroleum 2i.. Mean
time Reynolds Spring was marked
Up 3l2. Lake Erie & Western 21., the
preferred and consolidated gas ? and
New York. Chicago & ST Louis sec
ond preferred 1l2 points
A. the low prices Of the dav. reach
ed in he early part OF the afternoon
on the stock exchange, some Of the
recent leaders were down very sub
stantially from their high points OF
last week.
The r?ain hody of stocks while
heavy were not at all seriously de-
pressed.
In the late dealings steel common
was pushed up to a new high. quite
possibly 10 Offset the disappointment
over the action Of the merger stocks.
and the effect of the news from Wash
!ncton that the Federal Trade Com
mission had taken steps TO prevent
the misunderstanding Steel
combination on ground that il v.olat-
ed the Clayton act
The diversion Of United States Steel
fulfilled the purpose OF checking sell
ing in other parts of the market and
bringing about a certain amount OF
recovery. The last hours dealings
however. We're almost dull, when set
beside the excited speculation Of the
close Of last week