Evening star., 1923-01-31
HOLDS new
| BUYING IN CHECK
Stocks Irregular, But Make
Some Response to British
Debt Agreement.
BY STUART =. WEST

Special Dispatch to The Star.
NEW YORK, January 3l.-Witf
the European uncertainties hold
ing new buying in check. profes-
isional traders operating on the shor'
side were able to make more or less
Impression at times in the market to-
dav. But the losses for the most
part were small and stocks were well
supported on the decline. In fact
the support was strong enough to
bring about prompt rallies in the
rn:. s,rjtv of instances after each each
little dip.
me nr,.r party endeavored to max
all the capital it could out of the
United States Steel report, showing
only 81 cents earned on the common
whereas the street had looked for
the full SI.25 TO be covered. Steel
common was forced down Il point and
q half, and this had an unsettling
effect for Il while upon the rest OF
the list.
Dividends Add Strength.
As against the steel figures, how
eveS. encouragement was iound IN
the placing of California Petroleum
common on : per cent dividend
basis. and in the maintenance by the
Studebaker Corporation OF the 10 per
cent cash distribution on the eniarS
ed stock issue. Both these actlpnS.
to be sure. had been anticipated. but
the ensuing strength in California
Petroleum and Studebaker stocks was
a help to the whole market. HeaVy
foreign selling continued in RoEal
Dutch. causing another sharp break'
but this was an exception.
There We're very few weak points
among individual stocks. The mar
l>et interests back of Corn Products
gave another demonstration OF thelr
mower Beechnut Packing Went up
in anticipation of favorable earn :
ingS report soon to be published, and
Interb"rough Rapid Transit was
bought on the strength of the De
cember earnings report. which show
ed for the first time balance TO the
credit Of New York city. after all m
tercst and other charges. including
the Manhattan Elevated guarantee.
Review and OutIouk.
The important incidents in the
financial situation today were the
British acceptance Of tho American
Terms for funding the war debt. the
continued pressure against Frencn
exchange, which carried rates almost
down Ia their record low OF Novem-
Der. 1920 and on the other hand an
sbrurt recovery of some of the
ground lost during the past week III
the French dollar loans.
II was hard IL trace any effect
Of the debt settlement upon the mar
lttS of the day, outside OF nnd :
..ratr rise in sterling exchange ana
an ACCOMMODATING advance in British
government bonds. But ii is an ac-
iticvcm,ut which. in its ultimate bear
ing ulfou the outlook for American
and British finance. is of the utmost
inheritance. Tle payments are
strung cut over such q long PERIOD
that they can hardly be much or a
factor in reducing the TAX burdens
in this country.
Value of Debt Agreement.
The main value of the agreement
In chiefly that it binds the tnlted
S,arrS and Great Britain together
more. closely as the ranking fnanclal
mover, of tn" world. and u pro-
yidcS the final necessary assurance
that British finances are firmly on
their feet.
Tn conflicting movements OF rehcl
eAchaugo and French bonds lett the
question open as To whlch was 'ne
more significant. Francs recovered IN
the afternoon quite a part OF the early
loss. but in the meantime the tacl
had been established that French
credit as gauged b. the value OF
French currency. was rated in the in =
tsruationaI money markets at virtual
ty the lowest in all times.
The. movement of francs, rejecting
as il does the operations of all ma =
tions. is a much more reliable guide
to banking judgment than are the
fluctuations of French bonds. which
are dealt in only in New York. and
the market for which is not difficult
to control.