The New York herald., 1922-11-21
FINANCIAL NEWS
AND COMMENT
Spiritless Trading Leads tc
Aimless Series of Fluctua-
tions in Stock Prices.

The outstanding characteristic OF yes
terday's stock market was its extreme
dullness. Professionals were entirely
alone In their operations and the public
interest In the market was completely
dormant. This was not an unusual con-
dition.
1t has been expected that the market
would settle into a quiet. dull routine for
a period following the drastic read
Justment 1t has had. II Is the history
Of sharp changes In the direction OF
market movements that they have
shaken confidence for the moment. and
almost invariably some little time has
been required before outside trading In
terests are sufficiently reassured to once
more take an active part in the market.
Because of this situation II has been
found that about the best that can be
expected of the stock market during
one OF these periods is dispirited and
aimless series of fluctuations. more or
less narrow and almost entirely with
out Significance. II IS the kind of a
market In which the Spectator whose
largest operations are conducted on the
plan OF short, quick turns Is likely to
be whipsawed. as Wall Street terms 1t.
A market OF that character always
fails Go give evidence OF any definite
kFSHu III particular issues until the lIl-
mediate movement, which Is usually not
more than two or three points has been
completed. How long such a discourag-
ing state of affairs In Wall Street win
exist depends entirely on how long II
will take the speculative public 70 re-
cover confidence and once more enter
into the market on a large scale.
or course, there are always individual
developments in connection with various
companies which turn attention to them
and which make for speculation in their
shares, which Is altogether separate
from the, movement Of the general list.
Yesterday, for instance. there was an
assault on the stock of the General As
phalt Company based on unfavorabe
reports concerning new financing, SC
At the same time reports that the di-
rectors of the Public Service Corporation
We're planning to increase the annual
dividend rate at their meeting to-day
produced enough buying orders in that
issue to put 1t TO 100, a new high for
the year.
Dealings in the !, bond market were
small and without significance. No at
tention was paid to the ruling of the
United States Supreme Court that banks
must pay q State capital tax, where
such State tax. law exists, on Liberty
bonds in which capital is invested. The
fact that the Libertys were exempt
from Federal taxation made no differ
ence. according TO the court ruling. At
first there WAS. a tendency to regard
this as decidedly unfavorable to the
United States war loans. but later dis
patches, giving a more complete report
of the courts findings. put a rather
different light on the matter.
In the case In question--An Oklahoma
case--it was held that the bank must
pay tax on the capital II had IN
vested In Libertys. Later advices. how
ever. showed that the ruling also az
fected ''other forms OF tax exempt &C.
curities." So 1t does not appear that
under this ruling there can be any Inn
mediate rush by banks to sell Liberty
bonds and reinvest in other tax exempt
issues, for they, likewise. are included
Individual holdings OF Liberty bonds
are not affected.
| In New York State the ruling means
nothing for the present. for the New
York law runs along tho same lines ms
| the Federal law and makes about the
same exemptions. II Is not likely, how
ever, that the New York State iegisla-
| tors will allow this new source OF
revenue TO go untapped and now legis-
lation looking TO taxation on the capital
OF New York banks invested in these
bonds may he expected at almost any
/ time.
In the foreign exchange market there
were como very violent advances
French francs getting up at one time
almost fifty points over Saturdays
/ figures. Sterling. too, was very strong
selling close 10 its high for the year
The commodity markets were under
| pressure. both cotton and grain closing
substantially below Saturdays final
quotations. Call money stiffened 70 {
/ per cent.