The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-09-14
FINANCIAL NEWS
AND COMMENT
Stock Market Proves Flexible
as Heavy Profit Taking
Makes Appearance.

A severe reaction which was moro In
the nature OF sharp shaking out pro-
cess than impressive liquidation marked
the action Of the stock market yester-
day. Certain of the commodity mar
kets and some sections Of the bond
market were likewise under pressure.
The early trading. particularly In
the share market. was more or less
aimless and without much interest.
During this period. however. some of
the industrial leaders on the list were
marked up rapidly. some OF them
getting into new high ground. Specu-
lative groups were responsible for
this. to a large extent. however, with
smattering of professionals following
their lead.
In the last half OF the session there
developed considerable pressure against
the whole list. Profit taking OF a sub
stantial character was In evidence and
not without reason. Some Of the more
highly speculative issues-stocks In
which there has been particular in
terest in recent sessions-have advanced
very materially. and most of them
showed handsome profits which specu-
lators were eager to take, as soon as
there was the slightest sign of hesita-
ton in their movement. This kind OF
selling. coupled with quick operations
for the decline on the part Of floor
traders. made itself felt yesterday and
once 1t was out of the way the market
CJ>n aH f<~
Perhaps the most interesting develop
ment Of the day was the way IN which
the news of the latest rift between Bel
GUM and Germany on reparations pay
ments was received. Practically all the
foreign exchanges opened off sharply
and sold substantially lower during the
day. Demand sterling receded below
4.42 and French francs declined about
s points. The break in Belgian francs
exceeded that of the French currency
Banking opinion with respect to the
foreign situation remains unchanged
For this reason 1t is natural to assume
that the changes which occur from day
to day in the foreign exchange rates are
a reflection OF speculative operations
as they are influenced by each days news
grist. Little real danger is seen in the
latest so called ultimatum on the part
Of the Belgians. for 1t is confidently ex-
pectcd that the Preparations Commits
sion will be able to arrange a compro-
mise that will be acceptable to both
sides Of the controversy.
The issuance yesterday Of upwards OF
$80,000,000 of bonds. notes and other
obligations was Of especial significance
In revealing to what extent the big In
dustrial leaders of the nation are lay
ing plans for business expansion. 1t
Is hardly likely that any such amount
of money would be borrowed at this
time unless the borrowers were able to
see pretty plainly that they may derive
extraordinary benefits therefrom New
est reports from trade circles bear out
this theory.
In the steel industry especially steps
are already being taken to revive the
activity which was hampered materially
by the shortage of fuel and the rail-
road strike. Assurance that coal soon
will be produced in an almost normal
fashion and indications that a final set
Element of the shopmen's strike is at
hand have caused the steel mills to blow
In some of the blast furnaces which have
been idle for weeks and to make plans
for even further expansion.
In connection with this renewal OF
activity the Iron Age points out that
the August loss or blaSt furnace activity
will be made up entirely within the next
week or ten days. Such an increase in
pig iron production. the review adds.
points to a correspondingly clear sit
uation in the near future in respect to
steel deliveries subject to the handicap
OF insufficient car supply" Since that
review was written. however, announce
ment has been made OF the end of the
shopmens strike and a greater part Of
the handicap mentioned will be removed
soon.