The New York herald., 1922-10-29
FINANCIAL NEWS
AND COMMENT
Pressure Again Lifted From
Stocks, Although Several
Shares Are Heavy.

bouyancy yesterday and the rally on
which they closed Friday afternoon was
continued through the short session.
Nevertheless. there were some exceed
ingly soft spots, notable among which
was AlAed Chemical and Dye. Heavy
selling of that stock. probably not un-
connected with unfavorable rumors con-
corning its position. broke 1t very
sharply. The selling and unfavorable
rumors were in decided contrast with
the heavy demand for the stock. based
on talk of higher dividends, bigger
earnings, etc., not so many weeks ago.
The market as whole, however, gave
evidence OF substantial Improvement
In its technical position as a result of
the declines of the last several days.
IL could not be said that there was a
scarcity of stocks In the general list.
nor was the bidding for shares particu-
iarly aggressive. What appeared m he
the significant point Of tie mornings
trading was the fact that the lifting of
ule pressure on Friday afternoon was
continued through the next day,
it was pretty generally accepted yes-
'eruay tnat the weeks reactionary ten
dency had its basis in speculatiye ex-
cesses. 1t is recalled that after the In st
preceding reaction stocks as a whole re-
bounded with such vigor that In two or
three days they had wiped out all losses
Mhlch ten days Of reaction had caused
ihls snap back was altogether too sharp
ana IL was inevitable that another cor
fAntlVa
tion uppermost In the financial com.
munlty yesterday vas whether or no;
the declines Of the week had correcte,l i
the overdone speculation. Indications
at the close yesterday were that very
much has been accomplished along that
line.
There was pretty substantial evidence
that pools were cnce more getting into
acton. Certain issues In which specu-
iative groups are known to have been
working at various times showed eyery
sign of the customary tests which pool
operators like to put out in feeling
their way along. This was particu-
larly noticeable in some of the lower
priced pool Issues
The rails as group did NOT respond
to the better feeling as easily as the
industrials and many of them declined
those who are inclined to feel that the
bad showings now being reported by
the carriers for September are. re-
sponsible for the lack of interest," in
their shares, but this is hardly probable
when 1t Is considered that there has
been no secret about the tremendous
expenses OF the roads incident to the
shopmen's strike It Is far more likely
that the heaviness OF the rails yester-
day was due to selling by purchasers
who were convinced that the railroad
shares were In for violent advance
regardless Of the course Of the indus
trial list, and who had become dis.
gusted during the last few days when
both groups participated In the decline
Certain 1t Is that a large majority ol
traders has been buying railroad shares
for some time on that theory.
The extent to which heavy liQuida.
ton of stocks helps to correct a heavy
loan position was pretty well indicated
in yesterdays Clearing House state.
ment. Whereas the average statement
showed a daily average increase In
loans, etc.. Of s731 900. the actual state.
ment revealed that on Friday loans
discounts. etc. were off s51.553,000 IL
comparison with the preceding week
marking a significant shift In tn,
course Of loans at the end Of the week
At the same time the member banks
built up their reserve at the central
bank substantially In the closing hours
Of the week. for whereas the average
statement showed decrease of $21,'
! $4,000 in that item, the actual condi
tion disclosed an increase OF s15.529,000
Exchange rates were not quite st
weak, sterling especially getting above
Fridays last figures. In the bond mar
ket 1t was noted that while there was
no especial oouyancy in the market fol
the new Government AIS. at least the
decline was for the moment checked.