Evening star., 1922-07-12
..sa9eks.ARE. FIRM;
= EXCHANGE j better
Presidents Proclamation
and Improved Foreign Sit
uation Ruling influences.
BY STUART p. WEST.

NEW YORK, July PA better feel
ton. showing itself in further sharp
recovery in the foreign exchanges ana
in foreign government bonds. was the
principal influence in the markets to-
day.
The definite stand taken by the
President in the shopmen'S strike,
that it must not interfere with inter '
state commerce and the handling or
the mails. was very heipful Incl
dent.
The days stock market, encouraged
by these developments, was more ac-
tive and broader and altogether the
strongest market Of the month So far.
The rise was more general and more
important than on any day since the
culmination of the spring campaign.
Cause Of Rally.
The rally in exchange rates was
directly due to the news that the
reparations commission had reduced
the July installment Of 5o.ooo,ooo
gold marks by 100000, or 36 per
cent. Thfx action would have been
of much more Significance had it heen
taken in answer to Germany's Siea
for relief.
The reduction was made only ae-
cause Germany had delivered gooQs
lowing this cash to be applied toward
next Saturdays payment. Neverthe.
less it did ease the situation, even II
only temporarily. Franc exchange
half cent from Mondays extreme 1oF.
German marks around rs hundredths
of a cent compared with their low OF
1871 hundredths. The recovery IN
French and Belgian bonds extendeo
TO Q points, or substantially all the
ground lost in Mondays session.
Harding's Proclamation Hell~..
The declaration by the President,
following the protective measures OF
the state executives, meant that the
whole power of government will be
directed toward helping the roads in
theiS efforts to keep train schedules
running.
II bears out the strongest point
against the strikers. namely. that in
defying the Labor Board, they have
defied the government itself. and must
fight the federal power as well as the
carriers.
be no doubt Of the outcome, and w all
street today, in the particular
strength of the railroad stocks. was
expressing it's confidence that the end
would be soon.
Dividend rails improved
spicuous as the low-priced, non -divi-
dend issues. This class of stocks are
undoubtedly favored by the changed
attitude of the authorities regarding
railway combinations.
Not only are old-time objections
withdrawn, but the Interstate Com
merce Commission Is directly favor
ing it as being in the public interest
mergers like that proposed between
New York Central and the Big -Four.
Action in Industrials.
Among the industrials there were
many individual features Stude anse oaRer
tive among the equipments, Con-
soIidated Gas and Columbia Gas
among the public utilities. the cleo
trio stocks leather. woolen anu paper
shares and stocks of the telegraph
and cable companies were all at. times
in rather keen demand. Some new
high prices for the year were reached
and the general average for. both
industrials and rails was not far
reaction of the first two weeks in
June. 4~-1'- r.
Electric Stocks.
Stocks of the electric and hydro
electric manufacturers were all of
them prominent in the market today.
They were bought on the strength of
advance reports of second-quarter
earnings indicating a substantial
gain over the first three months.
Westinghouse Electric crossed 60
again; General Electric was one of
the leaders of the high priced stocks;
worthington Pump went above so.
and Allis Chalmers common was bid
up on active trading.
International Paper.
Continued strength of International
Paper stock was accompanied by
hints that following the So ton ad-
vance in newsprint papers announced
a week ago there would be further
increase in the near future.