Evening star., 1923-01-16
CRISIS OVER RUHR
! H|TSALL MARKETS
Trading in Stocks Very Dull,
But Liquidation Is Not
Considered Serious.
BY STUART p. WEST.

BY STUART II. WEST.
Special Dispatch to The Star.
NEW YORK, January 16.-The
crisis in Franco-German relations
brought about by the seizure of the
Ruhr was again the overshadowing
feature in the markets today.
German marks sank to a new low
in the course of a panic on the Ber-
lin bourse. French exchange was
not weak the way it was on Monday,
but French government bonds showed
the strain, the 71a S of the dollar loan
getting down within less than point
of the lowest they have ever sold.
Under heavy offerings from the
continent sterling dropped over n
cents in the pound, and was off nearly
3 cents from last weeks high.
The commodity markets were more
sensitive, especially wheat, which
went up at one time rather sharply.
Price Changes Not Great.
On the whole. the stock market was
less concerned over the foreign news
than any other quarter. All through
the forenoon and well into the after
noon trading was dull, with little
change in prices, outside OF few
individual stocks. Evidently investors
and spectators alike had made up
their minds that while this was no
time to add to their holdings, there
was nothing as yet sufficiently
menacing in European affairs to war
rant selling stocks. Selling did come
in as the afternoon went on, but 1t
originated with the professional ele-
ment which was experimenting with
volatile speculative tissues such as
Baldwin Locomotive. Studebaker,
Bethlehem Steel and Pan-American on
the idea that the buying power being
temporarily weakened, this class of
stocks would offer no great amount or
resistance to operations for the de-
cline.
French Outlook Dubious.s
The financial community did not IT.
self become upset by the war talk in,
duged in by some on more sensational
cable dispatches. 1t did find confirnla-
ton for it's opinion, held all along that
the French attitude attempting to
coerce Germany into paying reparations
was a mistake and in it's outcome, from
the French standpoint, extremely dubi-
Gus. This view has been expressed for
months past in the low selling level of
the franc, the only exception being the
brief interval month ago when there
seemed some ground for hope in an
agreement on the indemnity question.
An atmosphere of quietnesS rather
than weakness was the response of to-
days stock market to the unfavorable
European news
Much Short Covering.
few directions, but taking the list as
a whole, there were no signs of genu-
inc liquidation. On the contrary,
short covering made its appearance
in stocks like Baldwin Locomotive,
Studebaker and California Petroleum,
which had been particularly weak at
Mondays close. Along with this
went a modest renewal of operations
for the rise in few carefully chosen
stocks.
American Water Works stocks were
active and strong today on tntima-
tions that the six per cent partfcipa-
ting preferred stock might be put on
q dividend basis at the meeting We'd
nesday. Anticipation of favorable
dividend action was also back of the
rise today in Brown Shoe, and the
prospects of an increase in the cash
dividend on Reynolds B was account
able for the buying in that stock.
Bethlehem Steel Weak.
There were a number of weak spots,
however. Bethlehem Steel B was one
of these, breaking sharply on talk
that the dividend might be reduced or
perhaps passed altogether at the
meeting which is scheduled toward
the end of next week. 1t is realized
that~th 1922 earnings will show UP
poorly, but in view of the large sur
plus and the necessity of getting Mid
vale shareholders to approve of the
merger, it is considered hardly like
ly that the dividend rate will be chang
ed at this time.
The weakness In Coca Cola fitted in
with the, Wall street view that the
recent advance above 80 was due to
the covering of an extensive short in
terest, the elimination of which left
the stock in vulnerable position.
Coca Cola is expected to show $12
earned in 1922, but there is no idea of
any further increase beyond the pres
ent Sc dividend, and in the meantime
the stock is in the favorable technical
position of good news" being all out.
New Copper Merger Rsmors.
The formal announcement of the
completion of the Anaconda-Chile
deal brought rumors of the possible
acquisition of Cerro de Pasco by an
American copper group. Such a deal
would put. other American producers
on the same footing as Anaconda in
the matter of low-priced copper
Chile, as every one knows, Is prob
ably the lowest cost producer in the
world and Cerro de Pasco is not far
behind, owing to its large silver ore
reserves. The main point regarding
the absorption of Chile by Anaconda
copper metal from the South Amer
ican property to Atlantic ports is
only 81 a ton, whereas the freight
from the mines in the west is $16.50
a ton.
Gulf States Steel operations in 1922
are expected to show earnings of
about 81 share on the common
stock, while current earnings are
running at the rate of $12 a share.
Earnings in the last quarter last
year were better than in any of the
other three-month periods and these
earnings are continuing into 1928.
The company showed loss in its
1921 opera lions about equal to it's
earnings last year.. Plants are re-
ported operating at capacity.
Severe Break Mt CIose
The>stock market did not become
definitely weak until the last hour
and a half. Then the professional
element, making a determined drive
against the speculative leaders, sue
ceeded in unsettling the entire list.
Equipment. steels and motors were
heavily sold and oils were leaders in
the decline, in spite of the announce
ment of more price advances in the
Pennsylvania and midwest terri
tories.
Railway stocks held firm until late
dealings. Then they, too, gayes way.
Studebaker was off 2 points and
Baldwin Locomotive nearly 8. Steel
common dropped below /105 under
heavy pressure. The losses in the
oil group extended from a point to
q point and a half.
FOREIGN EXCHANGE.