Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-01-05
list Turned WEAK
IN THE AT FTERN00N
Recurrent Liquidation for West
ern Account Undermined
Whole Market

New York, Jan. J.--Thc highly ir-
regular and rather conflicting movement
Of today's stock market reflected the
after effects of the Chicago banking
situation and the recent suspension Of
the prominent wire house. There were
many indications Of renewed liquidation
for the so-caled Western account rs
result Of contraction OF loans in con-
nCction with the banking developments
Of the Windy city. There was also
evidence of further selling for the ac-
count Of the firm which failed last week.
The alternate rallies and reactions dur
ing the session likewise reflected fur
thcr divergence of speculative senti-
ment and the prepOnderant professional
caIiber of the trading. During the
morning the general list put up fairly
strong resistance, but after midday
th"rc was slipping back all along the
line.
At the outset the market was con-
frontcd with the unpleasant news of
tho passing Of the General Motors divi.
dend. While this action had been very
generally expected and while the deCi-
sion Of the board was accompanied by
an illuminating explanation of the
company y position, the incident never
tholcSS was disturbing from n senti-
mental viewpoint. but as a direct mar.
ket factor cut little ice.
In its general character the market
strongly suggested something Of an adj
verse natur" was overhanGng. Just
what this fear comprised It would bn
dttficut 70 determine, although there
hav" been nt!matons the last few days
OF tho recent suspended wire house
troubles involving other interests.
Whether there was any real ground for
apprehension on that score it would
be impossible to say, got in many
man"uvers witnessed during the ses-
sion it looked very much rs if somc-
thing not altogether pleasant was being
lodged.
Apart from the General Motor div.
idrnd incident. there was little news 10
influence the market much either way.
After the erratic gyrations Of yeSter-
day and Monday. both the grain and
cotton markets experienced similar diff
hcuity in finding a stable level rs the
stock market. Quotations for the more
important foreign exchanges were
lower, German marks showing especial
weakness.
The market. however. had one strong
supporting influence in the continued
ensment Of the money conditions. The
'all renewal rate was fixed at per
cent. but dropped almost Immediately
to I per cent. This prompted some
'Ovcring of the shorts interest, which,
based upon the borrowing demand after
the close yesterday, Is again greatly ex-
tended. The buying power otherwise
was found TO be scant. Reports. how
ever, that progress was being made in
the proposed merger Of the independent
steel companies were accompanied by
gains of ! to PIG points in that group,
notably Lackawanna. Vanadium. Re
public and Gulf States Steel.
After the early irregularity the sugar
stocks were taken up again under the
lead Of American Sugar Refining,
which moved above 60. The equip
ments. metals. tobacco and utility issues
also rose ! to 3 points. Rails followed
their recent apathctic course, although
the coalers and grangers developed a
tirmer tone.
The oils turned heavy around midday
with Mexican Petroleum. General AS
Phslt and Standard Oil of New Jersey
and California bearing the brunt Of
the selling movement showing losses of
10 almost . points. The reaction
current quickly spread to other quar-
t"rS of the industrial division. which
quarter appeared to be still vulnerable.
Lacking support except Mt marked
concessions, further severe losses wcrG
sustained throughout the industrial list
during the last hour. Oils, motors and
equipments we're particularly weak and
indicated rather wide pool liquidation
and the unCOvcring Of numerous
stops. The market closed weak al
the bottom prices of the dny.