Evening star., 1922-06-16
MORE LIQUIDATION
IN THE MARKET.
Support Lacking as Losses
Are Stretched an Addi.
'tionaI Point or Two.
BY STUART p. WEST.

NEW YORK, June 1o.-AS had been
fully explained at the close of busi-
ness Thursday, the stock market to-
day was subjected to a further test
Of its ability to Withstand selling
pressure.
Professional syndicates, as is al
ways the case after so sudden and
violent decline, were altogether
peSsimistic and inclined to further
ventures on the side of lower prices
1t was fact also that the ten days
during which the market had been
going down was not long enough
space to allow proper adjustment OF
a speculative position which had
been steadily expanding for four
months. A large amount of the de
layed liquidation remained after the
first great break last Monday. II
was this secondary selling wave
which bore the market down on
Thursday and Tapped over into The
session today.
Lose n Point or More
The downward movement was not
checked until the leaders of the in
dustrlal list were down another polnI
or two points all around and until a
large part Of the market was below
the lowest of Monday
1t was significant as illustrating
that the trouble lay wholly IN d pre-
vlouS over speculation, but invest
ment securities were not affected at
all
On the contrary. the upward ten
dtncy continued, especially in gov
ernmcnt bonds, with the liberty first
AS at a new high and other mem
bers of the United States war loan
group well up to their best, and WIN
United Kingdom bonds higher than
they have sold in the last week or
more.
French bonds were not as sens.-
tive rs they had been on other occa-
SONS to the weakness in French en-
change, which was again very pro-
nounced. Rates got down again to
their lo-est Of last Tuesday. but
other exchanges including lire and
@terlinG, were only moderately af-
fected
1t is now evident that the market
for franc exchange is beginning To
take more seriously the statements
made by German fnanciers that the
July installment of reparations is un-
certain and that the subsequent
monthly quota is much more dubious
still.
Money 3 Per Cent.
The money market felt the effect of
the distribution of liberty bond in
terest and the supply of funds avail
able at 3 per cent on call loans was
kets was there any reaction to Thurs
days dropping off in the English
bank rate. The possibility of this
forcing the hand of the federal re-
serve authorities continued to be dis
cussed. but the action of the latter Is
of far less consequence than it was
last winter and spring. The thought
is that the general money market
anticipated long ago in its prevailing
level of quotation any reductions
likely to occur in official rediscount
rates.
Durant Motor Co.
Stockholders of the Durant Motor
Company will meet June 81 to vote
on an increase in capital to two mil
lion shares of no par value, common
stock. The present authorized CAPT
tai is one million shares, of which
about seven hundred thousand are
outstanding. The three hundred thou
sand shares of unissued stock is being
held for conversion of stock of Du-
rant Motors subsidiaries into the
shares of the parent company Issue
of the new stock is being asked TO
provide means for possible future ex-
pansion.
Sharp Individual Declines.
The market for many of the recent
specially faroriteS proved extremely
narrow when the selling movement
struck it. Specialists in these stocks
had very few standing orders on their
books. for pool support had. for the
moment, been withdrawn. the mana
gers of these speculative syndicates
figuring that the situation had to be
cleaned up and that there was no use
taking stocks off the hands of the pub
lie at any higher prices than was
necessary. What happened was thar
selling orders put in for execution AT
the market along with stop orders.
were punched together and taken over
at sharp concessions.
Steel Stocks.
At today's low Midvale Steel was
off nearly fifteen points from its high
month ago, when Wall street was
obsesseG by the merger craze. l.
was one of the few stocks of which
ii could be said that il had lost nearly
three-quarters of the entire advance
since last August People close to
Midvale affairs said when the stock
was around 45 and the street was
talking 60 that whatever combina-
ton il went into the shares would not
be worth over 40. But below 81.
where they sold today, such overvalu-
alton as there had been was certainly
wiped out with vengeance. In no
other member of the steel group was
there anything like such a decline
Sugar stocks went down with the
rest of the market but their decline
could not be attributed to conditions
in the sugar trade. CubanAmerican
Sugar and Punta Allegro Sugar are
regarded as peculiarly fortunate in
SO far as their revenues from this