Evening star., 1922-11-18
TAXATION SELLING
AIDS PRICE SLUMP
Traders Take Losses During
Week to Be included in In.
come Tax Returns.
By the Associated Press.

BY the Associated Press.
NE" YORK. November 1S.-Severe
sstbacks in stock and bond prices
took place during the early part Of
the week. bringing the average to
approximately the same low levels
Of the June reaction. which was the
hrst serious interruption to the bull
movement which began in the fall Of
1891. Some recovery wAs made to-
ward the end Of the week, Friday
nights averages were below those Of
week ase.
The selling movement In stocks
WAS Influence. In part, by the Begin
ming Of so-caiisd taxation selling"
iarss traders taking their losses now
% - to include them in their 1879 in
come tax schedules. and BY liquida-
tion through brokerage houses which
desired to effect q reduction in their
loans n order to make . favorable
showing on the stock exchange ques-
tionnaire asking for their position in
the market.
Foreign Issues bend Feature.
In the bond market the feature was
tho acute weakness And sharp recov-
cry in foreign securities. The steady
decline Of French bonds had fright.
hAstsnsd to sell "at the market" with
the result that French 7hs and So
ana . number OF the French munich
pal and other continental issues
dropped 70 new low levels for the
ysar. Assurance by local bankers
~ restored confidence and prices im-
yaedistsly began to improve.
stock prices moved in seeming dis
regard Of outside news DEVELOPMENTS.
most Of which were Of a decidedly
bullish oharsster; Possibility Of ad.
Congress and downward tariff re-
vision were used by bear" interests
~ excuses for assaults on the list.
but conservative interests were OF
the opinion that those factors were
too remote ana underlined to be prop
efly discounted at this time.
Cheap Rails Depressed.
Publication OF reports showing that
Q number Of so.called second. grade
charges had 4 depressing effect on
railroad shares. most Of which are
now selling we'll below the high
prices reached last month. However.
statistics on carlosdings continue to
reflect steady Improvement in busi-
n0sS cOho1tlonb th5ooBAS4S tio So~"
try.
Resumption Of dividends by tho
General Motors Corporation and on
the preferred stock OF Montgomery
Ward. together with . number Of
additional stock and extra dividend
disbursements BY prominent indus
trial corporations and the payment
Of the regular dividend on Pacific
OF, which w40 reported At one time
to Be In danger, had . cheerful effect
on sentiment
C1tton ana 0rniA Active.
Cotton prices. which have been on
the upgrade for several weeks. suf-
fered q sharp setback on Thursday,
when prices broke Is . bale. largely
because Of the weakened technical
condition Of the market. A large
speculative interest has developed in
the grain market, all deliveries Of
grain except the December delivery
Of wheat touching new high records
for the season.
An easier tone appeared in the
money market, the call rate dropping
below 1 per cent for the first time in
several weeks. Most OF the time
money business 10 done on per
cent basis. while the best names in
Substantial Improvement has been
noted in most Of the foreign ex-
changes, demand sterling getting
within q small fraction Of $4.4S, as
|compared with 14.4S a week ago.
while both French and Belgian francs
and Italian lire showed good recov-
cry from their recent lows. Brazilian
exchange WAS also strong.