Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-01-10
STOCKS DEPRESSED,
FEW ISSUES FIRM

NEW YORK, January 10-Shorts
pressed their recent advantage at the
opening of today's stock market, pro-
yoking severe losses throughout the
list. Within the first half hour. de-
clines of 1 to 2h points were made
by prominent oils. coalers, shippings
and rails.
Marked heaviness was shown by
Mexican and Pan-American -Petro-
leums. General Asphalt. Burns Broth
ers, Atlantic Gulf and st. PAU pre-
ferred. Studebaker, Kelly Springfield,
Crucible, Baldwin, Erie, Reading ana
Missouri Pacific also were lower by
fractions to 1 point. Inactive issues.
including Montana Power and Welis
Fargo Express were among the rev
firm features.
Oils, shippings and equipments
added to their early losses during the the
first hour. Chemicals, tobaccos and
kindred specialties also were affected,
losing 1 to points.
Food and leather shares were de-
pressed, Wilson Packing losing 2h
points.
fore noon, steadiness being impaired
by the 3Ia per cent opening rate 1or
call money. This is the lowest initial
quotation in over three years
FThe railway list was dull and ir-
regular. aside from Erie issues. which
averaged l point rallies from yester-
days final prices.
Victory 3As featured the bond
market at the high record OF lO0.lO.
A block of million of the victory
AIS also sold at 1o0.10, duplicating
its recent high record.
I'm Reserve Cut.
1t is scarcely open to doubt that
the drop in call money rates FORE
shadows another cut in federal re-
serve rates and it would not be
surprising if such action were taken,
at least for the banks of the eastern
section at their meeting this week.
AS has been the case right along,
the only reaction to these proofs OF
a superabundant money supply came
in the bond market. where victory
loan bonds, both 3As and 4As, SOLD
at a new high record.
On the stock exchange it was an
other very uninteresting day.
Traders continued to work for lower
prices and were able to uncover vul-
nerable spots here and there. Inc
other things more or less unsettled,
with an appearance of heaviness at
times. But there was no important
selling in any quarter and a large
number of stocks held remarkably
firm.
Foreign Exchanges Advance.
The advance in the foreign ex-
and francs both drew close to their
December high. On the other hand.
German marks did not move SYM
pathetically as they did yesterday. This
does not necessarily mean that the
modification of reparations payments
q m r.
ket, but merely that whatever relief
is in stock for German finances
through a less rigorous enforcement
of the indemnity claims. is for the mo-
ment overshadowed by the continu-
ed terrific outpour Of new paper cur
rency.
The real turn in mark exchanges
can hardly come until Germany
knows just how much and when she
has to pay and make sufficient al
and debit side to balance.
Market Is Unresponsiye.
The market continued today wholly
unresponsive to outside influence. 1t
was much more interested in SOCIAL
ed technical conditions. Low priced
rails were for the most part heavy
again, for the simple reason that
past been recommending their pur-
chase. This has resulted in their de-
Neloping vulnerable speculative ac-
count. The same houses which have
been bulling the rails have been bear
ish on the industrials Consequently,
while a weak long interest has been
built up in the former. a weak short
interest has been created in the latter,
The bear crowd concentrated their
efforts against Mexican Petroleum.
Baldwin Locomotive and one or two
others. They were able to get these
stocks down, but not to start gen.
eral decline. Later on the oils were
under pressure on prediction of i'm
pending cut in mid-continent oil.
Crucible Steel Problem.
The mystery always surrounding
the Crucible Steel situation has deep
ened as the result of recent market
developments. While the common
stock has come down little during
the last week or so and has not had
much more reaction than other steel
shares, the preferred has broken very
badly. From 81, where it sold month
and a half ago. it Is down over 10
ferred stock has had anything like
such a decline-most of the better
class preferred issues are, in fact.
well up to their high even now-in-
dictates some special cause at work.
If the condition in the Crucible Steel
Company is uncertain enough to war
rant the per cent preferred selling
around so, where the return Is nearly
8 per cent, and this in market
where sound preferred industrials
are selling on to 6k per cent
basis then how explain Crucible Steel
common in the COS?