Evening star., 1923-01-18
MARKETS IGNORE
. FOREIGN AFFAIRS
Stock List in Sharp Upturn
Only Foreign Exchanges
Weak-The Trend.
BY STUART H. WEST.


NEW YORK, January 1S.--With the
exception of the foreign exchanges.
todsy's markets once more showed an
extraordinary Indifference 70 the
European news.
German marks made another new
low record. French francs reached
the lowest in two months and sterling
was off nearly ) cents from high of a
week ago. But neither in the security
or the commodity markets was there
any sign of uneasiness.
Not only was there no liquidation
ON the stock exchange, but prices
Tor the most part went higher. The
same was true Of cotton, while the
wheat market always most suScep-
tlble TO political troubles, lay COM
paratiYely quiet
Decline I'm German Mark.
The Interpretation of these move
mentS was reasonably clear. The con-
tinued decline in German marks was
virtually an Acknowledgement that
with the hope of an agreement on
the reparations question destroyed,
the German currency has become as
worthless as that OF the other unfor-
tunate countries of central Europe.
The weakness in French francs re-
fected again skepticism in banking &
quarters regarding the French ven
ture in the Ruhr. More than ever the
cable dispatches of the morning indi-
Gated that the French public were
Weakening to the disagreeable truth that
collection of the indemnity claims by
force is not going to yield the results
that were first anticipated.
slump in Sterling Explained.
The downward turn in sterling was
much more n result of the hitch in
negotiations for the funding of the
British war debt than it was of
events abroad. AS for the action of
ihe security market, it was sim
ply in keeping with the Judgment
expressed all along, that nothing
which may come out of the situation
n the Ruhr will affect the generally
favorable outlook for domestic trade.
Had the rise of the last month and
half involved any distribution of
stocks things might have been diff
ferent. The market then would have
bccn more sensitive to considerations
of sentiment.
But with stocks in the main still
strongly held, the practical view is
dominant. which is that values depend
upon home conditions and that II
there is nothing sufficiently serious
in the situation abroad to influence
cur conditions here, then it cannot
he the major factor in the market
movements.
Stocks Move Upward.
The stock market gave proof Of the
strength OF us pOSlllpn again lOutN {.
With the foreign exchanges all break
ing, indicating a greater tension than
at any time so far in the situation
brought about through the French se1z-
ure of the Ruhr, there were no signs
whatever OF any liquidation in the share
list On the contrary. the principal
movements of the day were upward.
Traders who had sold short on the
idea that the crisis abroad would event
ually lead to a general unloading OF
stocks were ready TO admit that they
had Judged wrongly. Short covering
appeared all through the market, but
along with this went quite bit OF fresh
buving in special stocks.
The street was quite confident of
the story that the Durant interests
we're seeking control of Packard Mo-
tors and Packard stock was feature
from the start. Hudson Motors was
bought in the belief that, with earn
ings running al the rate Of Sc a share.
an increase in the dividend was likely
later in the year. Timken Roller Bear
ing made new high. also, on talk of
a dividend increase. The stock is now
paying So. but earnings are reported
to be as high as 50 a share.
Central Leather Strong.
The Central Leather stocks were
strong in anticipation of the state
ment for the final quarter of 1922.
cisiSely change for the better in
the leather industry. The big sur
plus of leather on hand has now been
reduced to a comparative minimum
and the outlook is favorable for high
er prices for the product.
Cofncident with the favorable trade
reports of the steel corporations and
the announcement that some of the
plants of the United States Steel Cor
poration are running at S812 per cent
of capacity, estimates were today cur
rent in the street of the earnings of
the corporation for the last quarter
30 nj Fr- Hn r~E-f rvsf 90
OF 1929 IT is expected that on Janu-
ary 80 figures for the last three
months of 1922 will show something
like 81 a share net income on Steel
common. With business improving
steadily. it is calculated that the first
quarter Of the current year will show
about $3.50 per share.
Republic Steel Financing.
1t was looked upon as quite a CO.
incidence that dividends were re-
sumed on Republic Steel preferred
Just at time when the company is
said to be getting ready to do some
financing. Since the first reports re-
garding Republic Steel financing
came to Wall Street the size Of the
bond issue to be fioated has grown
from $I0,0o0,00o to $15.000,O00.
In addition to the two bond offer
ings likely to be made to enable the
Pierce Arrow to get rid of bank
loans, il is understood that there will
also be another issue of stock. This
new stock would be a prior preferred
and about 100000 of it may be au-
thorized. Pierce Arrow has outstand-
ing at the present time 250,000 shares
Of s per cent cumulative preferred
and 100000 shares of common.
Stock Prices Best at Close.
The stock market reached its best
prices OF the day in the final hour
1t was evident then that recent short
sellers were acknowledging their
ability to make capital out of the
European uncertainties and that the
pools in industrial issues were be-
ginning to show some fresh initiative
Covering purchases were especially
noted in United States Steel common,
Republic and Bethlehem Steel, Bald
win Locomotive, Crucible Steel and
Studebaker.
Cosden made the best response Of
any of the oils through the an
nouncement of the increase in prices.
Anaconda Copper rallied well after
being heavily sold in the early part
of the day on the theory that the
two bond issues aggregating $780,
100000 would put such an obligation
ahead of the stock as to indefinitely
postpone it's return into the dividend
list.