The New York herald., 1922-10-07
FINANCIAL NEWS
AND COMMENT
New Standard Oil Melon Off
sets Bearish Factors in
Irregular Market.

| Conflicting influences were at work
in the financial markets yesterday, and
as a consequence there was large
amount of irregularity in price move
ments. Early alarm concerning devel-
opments in the Turkish affair passed,
but not until after it had had a ma
terial effect on the course of the vari-
Gus markets. The big melon-cutting
announced by the Standard Oil Com
pany of New York proved steadying
influence, but the rise of call money
to per cent. in the late trading was a
factor which was not entirely over
looked
While price changes were decidedly
mixed in the stock market, there was
pretty clear evidence of a greatly
strengthened technical position and an
enlarged buying power as a result of
the reaction of the last two or three
weeks. Recessions in the more i'm
portant and more active issues found
plenty of supporting orders just under
the market and it was pretty evident
that professional efforts TO cause atbad
break in the general market could not
be very effective. Those efforts clearly
We're seen in the early trading and
many issues were depressed for a time,
but the rallying tendencies displayed on
every dip of consequence were suffi-
ciently significant to cause a change Of
tactics.
1t needed only the announcement that
the Standard Oil Company of New York
had declared a 200 per cent stock divi-
dend to furnish the incentive for the
rNNt a,.I zutfK, IL
issues, the general market advanced
rather easily. Later there was some
profit taking in the leaders. but gem
orally they held we'll.
The buying of United States Steel
common was particularly impressive
That stock was put to log in the last
hour of business and only receded Il
from its high before the close. With
tonnage figures to be announced on
Tuesday expected to show the largest
increase in untitled orders in years.
traders were heavy buyers of steel,
planning to adopt a position which
probably would prove profitable If the
market reflected properly the big in
crease in untitled orders.
1t was in the Standard Oil group. OF
course, that the real interest centered,
and the speculation which followed the
New York company's announcement was
nothing short of wild. The stock of the
company affected advanced SO points to
new high record at 635. Gains of from
or to 25 points were made in some
of the others. 1t probably is not un-
reasonable to expect that similar action
VIII be taken at various times by some
of the other Standard companies. Ger
tainly the shares of many of them are
selling far out of line with the market
If some such distribution is not in con-
temptation.
In the bond market there was a simi-
lar measure of irregularity Oil bonds.
however, were very strong and many of
the high grade railroad issues held firm
around recent highs. The Liberty group
was higher with the exception of the
Az per cent. Victory notes. The in.
crease in call money rates in the late
trading reflected. no doubt, the lower
reserve position Of the Federal reserve
system shown in Thursdays state
ments
Foreign exchanges reacted early in
the day on the unfavorable news from,
abroad. although later cables indicat-
ing that the mornings dispatches did
not present strictly accurate picture
OF the situation were responsible for n
substantial rally. German marks made
"i'otIFr new low at ft2, as measured In
hundredths of cent. This may or may
not have reflected the German bank
statement showing circulation up by
2G.OoO.0O0 marks to above 100000
600. 600 marks. but it is hardly likely
that the prolific output of new paper
money is any longer factor Certainly
the German Government has advertised
sufficiently its intention to keen I'D tha
operations OF It's printing presses, and
any exchange operations based on that
premise are very likely to have been
completed long since.