Evening star., 1922-02-08
POOLSAGA|N BUSY
.. IN STOCK MARKET
Short Selling Brings Irregu-
Iarity-RaiIs a Sustaining
j Feature.

NEW YORK. February 8.-Shorts
put out fresh lines at the opening OF
today's stock market, but bull pools
continued their activities in various
specialtiea.
United States Food Products, which
was thrown into bankruptcy yester-
day, recorded further decline Of / y
points to 2k, a new low record.
Coppers, tobaccos, low priced
motors and rails forfeited large frac-
tions. Gulf States Steel and New
York Airbrake made ono point gains
and Adams Express rose 2 points on
rumors Of another cash distribution.
Wells Fargo also rising IN points.
Exchange on London made q new
high, with demand bills at 4.S5A.
LIQUIDATION 10 Steady.
Steady liquidation of minor special.
ties emphasized the irregularity OF
the first hour. Food Products, United
matra Tobacco common and preferred
and Famous Players eased J. to
points, and several OF the cheaper
motors and steels reacted sharply:
Rails were the only sustaining tea
mon and preferred, Northern Pacific.
Erie first preferred and New Or
leans. Texas and Mexico gaining to
The market improved before noon.
Corn Products rallying with Baldwin:
while Gulf States Steel, Chandler and
Studebaker were again taken In hand:
The open rate for call loans held
at per cent, but private onerings
were made at ~ per cent.
French Exchnge Division.
To what extent the advance in
French exchange, which continued to-
day, IL merely an ofrshoot of the
movement in sterling. and to what
extent it is indicative Of improve
ment in Frances financial condition
is a question upon which opinion IL
very much divided. The response
which Improvement in French ex-
change is having in the market for
French government bonds certainly
suggests that it is not wholly a sym
pathetic rise. but implies some real
degree Of economic gain. The strength
of the French external loans shared
interest with that in the United King
dom issues in today's bond dealings.
on the stock exchange. The bonds
were quite as prominent In the ad-
vance as were the stocks. The move
ment started in the st. Paul issues,
spread to the other low-priced mem-
bers Of the group and finally reached
the standard dividend payers. Such
representative stocks as Union Pa
cific, Northern Pacific, Great North
ern preferred and New York Central.
all either equaled or surpassed their
best prices OF 1922.
Extraordinary Strength.
The extraordinary strength in st.
Paul stocks. although the road earned
nj
last year. was another sign. OF which
there have been very many lately,
that the market has its face set to-
ward the futures, and is optimistic
even with regard to properties which
have not yet come out of their slump.
While operations flourish were go
ing energetioally In the railway lists
there was considerable profit taking
in the industrials. In the main this
sort of selling was readily absorbed
individual stocks studebaker went
through its previous high. Chandler
motors was equally strong. and tho
was the usual sharp upbidding in Q
number Of the specialties. with q mar
row market. which easily lend them
selves to ofIicial stimulation.
Exchange Chief Topic.
Further remarkable advance in
sterling exchange was the chief In
cident In today's financial situation.
At $&.36 rates were up 16 cents in
the pound from a month ago. Half
Of this rise has been accomplished
within the last ten days. There were
no developments to throw any fresh
light upon this movement. In the
broader sense 1t is measure of
Europe's economic recovery which
has become more definite and sure
since the first of the new year.
From a more technical point of
view it is the result Of a diminished
foreign demand and lower price lev
els for American merchandise. with
a corresponding curtailment in the
support Of exchange drafts.
Normally this is the season In the
foreign trade when American imports
approach their maximum, while ship
ments of staples are at their mimi
mum. Thia condition exists now
and the excess of exports has been
30 reduced that England is able to
more than Offset it with the so-called
invisible" credits.