Evening star., 1923-03-16
MARKET DEVELOPS
DOWNWARD TREND
Attempts to Force Up Prices
Fail in Today's Session.
Several Sharp Breaks.
BY STUART II. WEST.

NEW YORK, March 16.-From the
outset today the stock market wore
a very different appearance from
what it had on other days of the
week The note of buoyancy was
gone, and while for the first hour or
so alf-hearted attempts were made
10 advance a few specialties, the gen.
eral list was decidedly heavy. AS the
day went on selling pressure in
creased and prices began to come
down, in some instances quite
sharply.
The Pan-Americans broke badly on
the statement by the Standard Oil
president that American oil compa-
nies operating in Mexico stood to lose
fully half their original investment
owing to the exhaustion of new oil
territory. Marland, Cosden and SIN
clair were supported for time on the
idea that anything that was unfa-
vorabie for production in Mexico was
an argument in favor of American oil
companies. But later on these stocks
also came down from their top.
Leaders Turn Downward.
Stocks which have had a particu-
larly sharp rise within the last week
or so were naturally the most SEN
sitive when the market started down
Mack Trucks, Studebaker, Kelly
Springfield and American Can were
cases in point. Anaconda Copper,
with the dividend off the price, SOLD
down to so on large transactions. The
steels readily went along with the
rest.
Chandler Motors, which usually
moves with Studebaker, followed the
latter down. and withdrawal of pool
support in Hupp Motors found poor
market for that stock.
Railway shares, having had COM
paratively little rise recently. were
not as much affected as other parts
Of the list by the selling movement.
Today's Financial Review.
The stock market gave further evil
dence today Of being pretty well sat-
ated. for the present. at least, with
favorable news, as oil shares for the
most part had been unreSponSive to
Thursdays advance in prices for oil
in the gulf districts, so the coppers
were quite as Indifferent today to
the report that sales of the copper
metal had been made for export at
17& cents and even higher.
The Fiske Rubber Company Joined
the other tiremakers in a 10 per cent
increase, yet the stock. along with
most of the other members Of the
group, went down.
These were quite significant Incl
dents, as they bore upon question of
how far the stock market had dis
counted the return to profitable con-
dttionS in trade. They were also in
dicative of decided change from the
market of fortnight ago. which was
encouraging business report that
came to hand.
Outside News No Factor.
There was nothing in the outside
news OF the day which could be con-
nected with the reaction in stocks.
Rumors of a new German peace
offer continued to have their effect
changes. Inasmuch as the large
short interest had been built up in
French francs the further advance
could readily be ascribed to covering
purchases by spectators who did not
care to take the risk that these
newspaper stories from the European
capitals were untrue. or else that
nothing would come Of them if they
were true.
The Increase of s41,60o,00o in feder-
al reserve discounts reported in the
weekly statement was reminder of
increasing demands to support the
larger business volume and the high
er priced levels. But 1t was not
any immediate further rise either in
federal reserve discount rates or in
open money market circles. There
fore IL could have scarcely entered
into the stock market calculations of
the day.
Industrial Features.
Industrial Alcohol's continued ad-
vance today was not attributed to any
speculation on the results for 1922 to
ment. but rather to the excellent
earnings predicted for 1929. The in
come account for last year. according
to current estimates. will not figure
out more than IS per share. but at
present Alcohol is said to be earning
over s12. Rumors of a recapitaliza-
tion plan and deals with the Standard
Oil of New Jersey and other members
Of the Standard Oil group have lost
their force recently, and Alcohol is
now credited with standing on its
own feet.
Atlantic Gulf and West Indies fur
nished a noteworthy incident in the
trading again today, reaching new
high for the year. AS pointed out
recently Atlantic Gulf is now operat-
ing all of it's tanker feet at profit.
The 1922 report will probably make
better showing than was expected
some time ago. with at least interest
earned and perhaps something left
over. This year the business of the
company. it is said. will be decidedly
improved.
The days developments on the stock
exchange showed manifest check
upon recent speculative extravaganza.
but did not suggest any serious pres
sure to sell.
Better Prices Mark Close.
The low prices were reached around
midday, then supporting orders later
commenced to make themselves felt.
The equipment shares were bid up,
and this was the signal for renewal
Of buying operations In various other
industrials. The result was to put
stop to the selling movement in the
general list and bring about a mod
crate recovery.
American Locomotive in the last
hour ran uD above 1876 with a rapidity
which demonstrated the scarcity of
it's floating supply, and Lima Locomo-
tive and Baldwin were drawn along.
Cosden's stock was pushed up in the
last hour. In most directions, how
ever. the afternoon recovery only
made up part of the early loss. The
market continued to lack the vim and
activity which had characterized it in
the first half of the week.
Oil Producers Puzzled.
The Mexican oils bore their share
In the. afternoon recovery, following
the bleak which they had had early
in the day on pessimistic references
to the Mexican Oil outlook. The
statement tHdt resources OIL OIL
ply in Mexico are getting so limited
that American companies must, in the
end, lose. half their invested capital,
is the most startling yet made in the
controversy which has been going on
for the last two years on the subject
of Mexican oil conditions
Between the affirmation from these
high sources that the Mexican oil
territory Is rapidly giving out and
the denials by the Mexican Petroleum
interests the public is completely
nystffed as to what to believe.
Copyright. 1921