Evening star., 1923-05-22
RALLY IN MARKET
| HA[TS EARLY DROP
u. S. Steel Hits New Low at
s5-Margin Traders Forced
to Liquidate.
By STUART p. WEST.

Special Dispatch to The Star.
NEW YORK, May 22.-Liquidation
of the forced characterize Logical
sequel to Mondays violent break
brought new low prices in the market
today. After an hour and half OF
extremely heavy selling prices began
to turn. BY afternoon a good part OF
the market was back to or above the
final levels of the day before.
The stocks which showed the best
support while the early selling was
at its height were the California Pc
troleums, American Can. Anaconda
Copper and American Locomotive. IL
looked as though every share OF Cali-
fornia Petroleum preferred oEereu
was being quietly TAX This stock
will have TO be called in at l20 IN or
der to give the common clear road
to the exclusive benefit OF future
dividend increases which seem :tptly
warranted by the present earnings Of
the company.
Weakest Features.
For the most part the weakest fea-
lures were stocks that have been
brought out only within til last six
months or a year, and which have nor
found their way into the hands OF
the public Attempts to sell this class
of stocks disclosed very poor mar
ket until they had broken , to )
points Again these breaks occurred
regardless of company earnings or
dividend prospects.
Timken Roller Bearing, for instance,
WAS off over points AT one time, al
though it is quite certain that share
holders will receive something ex-
ira in the way of dividends next
month.
the low priced members of its group.
Selling In Zinc stocks.
The selling in zinc stocks was ac-
companied by talk of the reaction in
the industry, but at the prices at
which Butte and Superior. Butte Cop
per and Zinc and Callahan Mining
were selling this morning, such set
back as has occurred in the zinc
trade would seem TO have been more
than discounted.
The afternoon rally was the sharp
est of any that has occurred In inc
last month. 1t started with American
Can and California Petroleum. but
quickly spread to the rest of the list
New York Central distinguished it
self among :he rails b" coming PACK
over > points in very quick order
around $50. and Southern Railway
common Just under so. These two
and other rails like Baltimore and
Ohio and Union Pacific rebounded
easily.
steel Turns AT S0.
Very large amounts Of United
States Steel common had to be abb
sorbed on the way down to 90 before
bring ging about a turn. Copper and
zinc shares bore their part in the
recovery, Butte and Superior more
than getting back its early loss.
The new North American regained
most of the Monday decline follow
ing the declaration of 50-cent quar-
terly dividend, although TINS was
quite in line with what the street
had anticipated.
today were precisely the sort OF
thing which in the past have de-
noted the elimination OF a prolonged
downward swing such as Wall street
has had for the last two months.
Whether or not they bore this sig
r,ificance on the present occasion re-
mains to be seen.
At today's low level prices were
tack to where they stood last No
yember and were little above the
average of last summer, when bust
ness recovery had barely more than
got under way.
Review and Outlook.
In order to justify anJ- such price
levels il would be necessary 10 as
sumo that the trade expansion of the
last six months has been ephemera'
and that the Improvement that has
occurred during this period in com
rany earnings and in dividend pros
poets Is not worth considering at all.
Prices have come down moderately,
and production has been curtailed.
But inasmuch as credit is abundant
and supplies in the hands of mer-
chants and manufacturers are not ex-
cessiye, the two main elements pre-
ceding @ cycle of depression, are alb
sent.
The stock market has rushed to an
extreme in its conclusions regarding
the Importance of the business reac-
rion.