The New York herald., 1922-04-19
FINANCIAL NEWS
AND COMMENT
Stocks Unsettled and Prices
Reaet-Foreign Exchange
Is Lowered.


caused by Mondays turmoil among
industrial stocks became moro effective
In unsettling prices yesterday when the
market contemplated the German Rus
tior by a Republican caucus in the
Senate that soldiers oonus bill should
be passed. The situation in the Genoa
conference also tended to urge selling
OF foreign government bonds. especially
French per cent, and several foreign
exchanges retreated under the same in
fluence. 1t was easy to see why ex-
changes and securities directly affected
by the threatened dissolution Of the
conference without constructive results
should hesitate and draw back, but in
the case of stocks a more comprehen-
sive explanation of the sessions decline
OF IL to points lay in the market
itself. Every one who had studied the
growing speculative excitement Of the
last fortnight knew several days ago
that the advance was too rapid to be
IL.
progress Of the rise. in the opinion Of
conservative market judges, had begun
to lose touch with facts and probabili-
ties OF business and was stimulated
largely by the availability OF cheap
money and the momentum impaired by
skillful operations Of professional hands.
The most extensive reactions, natur-
ally. occurred in stocks which had been
bid upward most insistently since the
middle Of March. including Baldwin
Locomotive. Sinclair Consolidated Oil.
Electric Storage Battery, Chandler
Motor. Mexican Petroleum and Stude-
baker 1t looked as though considerable
distribution of industrial shares was put
through under cover OF buying OF rails.
as new high points were reached by
Atchison Rock Island, Southern Rail
way, Union Pacific and several others
before all classes Of stocks were car
ried lower in the late afternoons heavy
selling. The market was altogether con-
sistent with experiences of other
periods when improving business was
being discounted too rapidly. But
nothing in the days activities indi-
Gated that reactionary Sorces had spent
themselves pretty we'll, and It seems
altogether probable that future develop
ments In Genoa will be recorded in
several markets price trend. The
decline of three-quarter cent in sterling
exchange and OF IL and 13 points re-
spcctively in francs and lire was hardly
sufficiently large to denote great per-
turbation over European politics. In
IN economic sense a treaty providing
preferential trade rights between Ger
many and Russia would. If permitted
hv the allied governments to stand, un-
questionably be Of serious Importance
TO England. France and Italy for the
longer future. but it's value In the
present financial status Of both coun-
tries Is open to debate.
Tho reactionary trend of stocks was
felt in cotton and grain, an ambitious
forward movement of the former being
checked midway in the session, while
wheat futures receded about ~ cents
bushel. AS far as bonds were con-
cerned, IL looked as though realizing
sales OF tho same quality as in stocks
were completed on a fairly large scale.
Spectators who accumulated many or
the second grade rails earlier in the
month had seen quick profits accrue.
I.iquidating. however. found ready
market slightly under Mondays clos
ing prices, and there were Few points
of weakness at the end of the day.
Money conditions continued highly
favorable to the market for funded
securities, all call loans being arranged
at Sii per cent. Commercial paper OF
best names moved more freely at AZ
per cent. than they did on Monday. and
supplies OF funds for time loans on
collateral were substantial.