The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-06-06

STEEL SHARES
CROW WEAKER
BY STUART p. WEST.


Wall Street. New York, June 2s.
IT was another day of confused
movement on the stock exchange.
wall street was still feeling the re-
yulsion from last months steel
merger speculation. 1t is not so
much the opposition OF the federal
trade commission that it apDre-
hended. The head of the Bethlehem
steel corporation was quoted this
morning as confident that when
the facts were all brought out at
tie inquiry objections to the mer-
ger with the Lackawanna Steel
would be overcome. Undoubtedly
this reflected the views of steel
company officials in general who
went into all the possible obstacles
in a legal way before concluding
arrangements. Rather there has
been sudden awakening to the fact
that the benefits in the shape of
economies to be derived from these
cancellations are not to be realized
In the near future and that the
Valuations which the speculative
community a month ago were set
ting upon the merger stocks were
altogether excessive for industrial
shares which are paying no divi-
dends now and are not likely to for
some time to come.
Weakness in the independent
steel shares was communicated to
the coppers, but here the reason
was of different nature. The dis
appointment among recent buyers
Of the copper shades was not that
merger deals but that they have
been altogether premature in ex-
pecting the resumption of copper
mining and the moderate advance
in copper metal prices to take
shape in dividend action.
In the present day fashion of
movement by groups it was not at
an out of ordinary, while the steels
and coppers were declining, for 9TH
er sets of stocks to be going ahead
Several remarkable advances oc-
Cured among the minor railroad
stocks, Lake Erie and Western, To-
ledo, st. Louis and Western, and
Wheeling and Lake Erie. But in all
these Instances the incentive was
not found either in the general rail-
way outlook or individual company
earnings, but mainly in the quail
fieations of these roads as merger
constituents. The fluctuations in
the oil group were more puzzling
than those in any other quarter.
Some of them, like the Mexican
Oils, were definitely weak. Others
did little, one way or the other,
while still others like Cosden and
Philips Petroleum were very
strong.
With London reopened after yes
terday's holiday sterling rates did
not Immediately down. Sight
drafts on London soon after the
New York opening sold at a new
high for the year at S4.50A, but in
the afternoon, selling traceable to
speculative sources carried the
market down below the $3.50 level
again The net result of the days
operations was to still leave it
doubtful how large a part pure
speculation has played in the rise
Of the last few days. The CONT
mental exchanges were somewhat
higher, but the advances in French
and Italian rates from their recent
low level has so far been quite in
consequential, nor is any very sub
stantial recovery likely until the
question Of the German loan is dis |
posed of.
The protracted decline in the1
wheat market showed some signs |
Of elimination. The exact position /
here will not be known here, how |
ever, until after the departments
June figures on the status of the |
growing crop which are due on |
Thursday. 1t will then appear to /
what extent the downward move |
ment has been measuring the i'm |
provement in harvest prospects and !
10 what extent it has represented |
Inc grain trades overestimate Of t
the export demand.
In response to Mondays increase |
IN the available money supply the |
rate on call loan renewals was re- |
duced from q to per cent and |
fresh loans were freely made at |
Sc. This effectively disposed of |
any uncertainty regarding the char
acter OF last weeks slightly hard !
er tendency. establishing the fact |
tHat 1t was due to merely temper
My Withdrawals from the New
lork market. The Liberty 312s,I
made a new high for the year and
tne frst / \ s again touched par
AS the day went on, the stock
e4cnange operations assumed all !
tae more the character of a series !
Vi Speciality movements while the |
general run of stocks were neglect
VI The selling relaxed in the
steis and coppers and this encour-
sseQ resumption of pool activities |
n me oils and the low priced rails.
reorla d Eastern and Atlanta, Bir-
mlngham & Atlantic were added to
Ae list OF "merger nrncnacfs''