Evening star., 1922-10-19
SHARP ADVANCES,
SHARP DECLINES
British Crisis Has Little e.
feet on Stocks-SpecuIa-
ton in Oils Chilled.
by STUART p. WEST.
I'd Wire to The Star,

BY Special Leased Wire to The Star.
WALL STREET. NEW YORK, Oc-
tober 19-Todays stock market was a
tumble of sharp advances and equally
sharp declines. occurring stimuli
taneously IN individual stocks. These
movements were so entirely the re-
suit of special causes that they meant
little as an expression of Wall streets
Judgment regarding the general situa-
ton.
There was. in fact. nothing in the
news of the day calculated to have
much effect upon the course of prices.
Resignation of the British ministry
did not come as any great surprise.
1t did have some unsettling effect
upon the London market, and United
Kingdom bonds We're down point in
New York. Possibly, too. it was this
which stopped the advance in sterling
exchange.
But a parliamentary election in
England under present conditions,
while it may cause some uncertainty
in financial circles abroad. cannot
conceivably have any terrors for in
veStment capital.
OIL Speculation Slows Up.
Speculation in the oil shares was
suddenly chilled by violent and
quite unexpected break in Pacific
Oil. The published earnings have
shown the dividend barely earned. and
Yet the magic name of standard or
in connection with the company has
led at times to the most eXtravagant
predictions of what the shares would
ultimately be worth.
AS il looks now, Pacific Oil is an
other case where speculative calcu-
lations have far overshot the mark.
The report that the company needed
money for development work and
would have to find it by emitting
dividends was not authori ritativcly
confirmed, but was commonly be-
lieved.
Other Weak spots.
Resides the oils there were enough
other weak spots developed to keep
the market considerably unsettld.
Th Republic Iron and Steel report
for the third quarter. showing a small
deficit as against the surplus for the
preceding three months. was evident
Iy not a fair picture of the present
earnings position of this or any OF
the other steel companies.
1t covered a period wnen steel Iroduc-
ton was severely curtaiied by the fuel
scarcity. Nevertheless the statement
led to a general attack upon the steel
group. which met with some success
Bonds Further Sensation.
The most remarkable single incident
OF the dag was the rise i'll the tax eX-
enpt liberties 3l@S, not only far above
their previous high for the present year.
but to their very highest for all time.
This advance, accompanied as it was
by transactions of unusual magnitude,
might have been consequence of the
extraordinary oversubScription TO the
lew government lean. 1t possibly rep
resented the investment by institutions
and wealthy individuals of funds which
were intended for employment in the
new 4Ls. but missed out in the allot
ment.
German marks sold at 3 "ne-hun-
dredths of cent for the first time.
The decline in French francs was
checked. but French government
bonds We're rather conSpicuouSly
weak in all the markets. The per
cent external loan. dealt in in New
York. went below par-that is, within
less than q point of its extreme low
Quiet buying Seen.
1t is seldom that more, confused
price movement is seen than that on
The stock exchange today. The only
possible conclusion to draw was that
while heavy selling was going on IN
some directions. advantage was being
taken of the disturbed condition to
accumulate a number of stocks in
which sooner or later favorable divi-
dend action is counted upon.