The New York herald., 1922-09-07
FINANCIAL NEWS
AND COMMENT
Professional Traders Press
Stocks Lower at 'Time Due
for Reaction

The sizable reaction in stocks yes
terday occasioned little surprise as II
was generally appreciated that the tech
I nieal position OF the market warranted
the change. Nevertheless, sentiment in
Wall Street was no less cheerful than 1t
has been since the strike situation
started to clear up last week and all
fresh news developments tended to in
crease that confidence.
Progress toward settlement of the
railroad strike was entirely satisfactory
to Wall Street. although the roads ap-
parently are suffering little embarrass-
ment from labor troubles now. Eastern
roads have been able to add 5000 men
to their shop forces. the greatest accre-
tion since the start OF the strike. The
Western roads likewise are fast getting
their men back. A report received from
| the West said that $50 of the old shop
men OF the st. Paul road applied for
work yesterday, of whom only 45 were
/ needed. The 500 line now has 1900
shopmen as against 1900 before the
strike.
| AS the threat of general strike In
protest against the Governments in1unc-
tion proceedings never was taken
seriously in Wall Street the fact that the
| New York Labor Council failed to vote
in favor of such action did not arouse
enthusiasm.
| Trading in stocks was on a slightly in
| creased scale, but at no time was there
evidence of any panicky liquidation. The
market declined in an orderly fashion on
an average of from to 3 points. The
! selling was undoubtedly a test OF the
markets technical position after a long
period of expanding values. and pro-
| fessional traders chose this time to bring
about a reaction on the theory that real
izing sales would In the natural course
| of events follow the ending OF the labor
| controversy.
There were a few strong spots among
the industrial specialties. notably Chi
cago Pneumatic Tool, Fisher Body. Lg-
gett & Myers and Wilson & Co.
Higher quotations for French and
German exchanges We're seen in the
foreign exchange market. reflecting In
va mild way the more hopeful view OF
the reparations question. Another con-
structive factor in the foreign situation
was the arrangements concluded with
the French by Hugo SHINES to restore
devasted regions at the cost of 13.000,-
900. 900 francs.
The German bank statement showed
another large increase in paper cur
rency amounting to $4,000, 600, ,000
marks. The present total of German
paper currency outstanding Is more than
23S, 900. 900. 900 marks. or more than 100
times what 1t was in 1914.
A break in Mexican Petroleum o.
more than points was precipitated by
the revival of the charge that the Mexi-
can oil fields were fast becoming ex-
hausted. Shipping stocks were weak
being undoubtedly affected by the re-
ports of slump in fall travel to Eu-
rope and the recent cutting of passen-
! ger rates.
1 The cotton market was again under
pressure and quotations were lowered
about S2s5 bale Since the publica-
tion of the Government crop report last
Friday cotton has declined about s12 a
bale. A further relaxation in the money
market resulted In lower quotations for
call money. Call loans renewed at 4 u
per cent. ard then declined to per
cent.
Reviews OF the steel trade made pub
lie by the various trade organs disclosed
the fact that production of steel Is in
creasing while there is the promise of a
still larger increase next week. when
the transportation situation is expected
to improve A labor shortage is still
hampering the steel trade.