Evening star., 1922-07-10
AMERICAN SHARES
MAKE RECO|'v|ER|ES
BY STUART p. WEST.

week Gnu, pToNIu0A q SoNSS
all the markets today.
In only two quarters did important
weakness appear. -
which the ill-considered speculative
buying following the government
crop report had left the position
vulnerable.
The other was the market foI
French and Belgian loans, esPeciaill
the government and municipaf issues
dealt in here on a dollar basis.
ported at par during the first furry
Saturday, b. Sr9ke near Below nar
decline Of points from Friday
they were selling a week ago: Bel
gian 71as were of u to points on
The he week. French city issues were
conspicuously weak. and the French
Industrial and railway bonds re.
Gently fioated here sold at the lowest
prices so far reached.
Discounted ON Saturday.
In the foreign exchange market the
immediate shock caused by Germany 8
application for Il moratorium had
been absorbed by Saturdays declines.
following the protracted DOWNWARD
movement of the last month.
French francs recovered good part
of what they had lost at the week
end. Italian lire did the same ana
even German marks were higher. THIS
recovery, however, hardly represented
anything more than very large
short interest in German and French
exchange gathering in some OF Its
profits on the familiar theory govern
ing every speculative movement. that
the bad news" long expected was at
least temporarily discounted. The
course of the European public loans
was a much more reliable renection
of opinion regarding the foreign
troubles.
Was in Danger.
1t has been clear for weeks past
that the July installment on repara-
tions was in danger. and that even II
it were paid. subsequent payments In
cash were altogether unlikely. He.
peatedly has it been emphasized that
France did the worst thing for her
own interest when she refused to &C
cede to the Judgment of all the other
allied representatives at the Paris
conference that the reparations pro-
gram must be modified. II Germany
were to be put in position to con-
tinue meeting her obligations.
Yet holders of French and BEL
seriousness of the situation from the
point of view of their countries until
the crisis had actually come.
Doing Better.
Our own security markets recovered
from what slight Ill effects they had
suffered on Saturday. AT times ef-
forts were made to force prices down,
but, they had very little success
weak fasss -'in 1sl' stocks saSsa where there was
a short interest some rallies occurred.
The Standard oils, the Independent
steels. the motors and the equipments
rebounded with considerable vigor,
once 1t was seen that no llQuloatlon
was coming out
American Can was the object of
a special buying movement on un-
official reports of very favorable
earnings and on the analysis Of the
companys financial position which
before to begin dividends on the
common stock.
Nc Selling Pressure.
The market went down on the Ger
man news Saturday and at the out
set this morning. This was simply
due to tho hasty closing out by pro-
fessionals Of stocks bought last
week. There was no important SELL
ing. nothing to indicate that the in
vest1nent community was seriously
disturbed by the developments abroad
How few stocks there were for sale
around the low prices was demoM-
strated when the market turned up
ward as it did toward midday.
In the space Of q quarter Of an hour
win two, American Locomotive two
and the Standard Oil issues two to
three points.
American Can.
American Can was the market leader
on the long side today. 1t held up
better than anything else when other
parts of the list were unsettled. and
went forward the easiest of any when
the general market gave 1t the
chance.
The street understands that 4 new
pool has been formed under auspices
similar to those which have been in
charge of past campaigns.
There is talk Of dividends. but this
talk has been heard SO often in past
tion, that experienced people are
rather skeptical of it now. However.
this much may be said. that American
cam has never been in a better posi-
distributing to common shareholders.
Lake Erie and Western.
No surprise was felt at the news
that tho Nickel Plate interests had
applied to the Interstate Commerce
Commission for permission to marGe
with tn Lake Erie and Western.
Such accumulation was foreshadow-
ed when the latter road was taken
over by the Van Schwerigens several
months ago. The Lake Erie and
Western stocks practically doubled in
price since the sale Of the majority
holdings by the Vanderbilt system.
Home Markets Indifferent.
The indifference of our bond and
stock markets to the European crisis
was to be explained on two grounds
In; the first place, American indus
themselves to An export trade down
TO rock bottom. A complete cessation
of German buying and the crippline g
of the buying power Of France would
not make any vital difference.
In the second place, sober American
has made a serious mistake and faces q
periIous situation for its attitude to-
ward reparations and the proposed
German loan, still feels that France
will prefer to back down on these
points rather than risk bankruptcy
for herself.
Closing Dul-steel Tonnage.
A very dull afternoon in the share
list was only enlivened by the notable
com panies and some Of tho coal
shares. Buying OF the latter found
its incentive in the hope Of q strike
resulting from the latest
efforts put forth by the President at
1odayS conference.
Strength Of the independent steels
appeared to be anticipating early and
favorable decision by tho Federal
Trade Commission on the validity OF
the proposed merger1
a .s.s;.,