Evening star., 1923-02-26
TAKING Of PROFITS
SLOWS UP STOCKS
Indications of Liquidation in
Many Directions Gives Mar
ket Uncertain Tone.
BY STUART p. WEST.

M SIIahi L. "ESi.
Special Dispatch to The Star.
NEW YORK, February 26.-The
way the market looked today to many
good judges was that United States
Steel common and a half dozen or so
of the rails were bid up in the early
ution of stocks in other directions
and that later on this selling began
to show.
1t was good tactics to bring steel
common forward as a leader because
the backwardness of this stock and
the fact that it had gained very little
ground since the first of the year had
been a subject of unfavorable COM
ment
The resumption of buying in some
of the railway shares was again in
Splred by the prospect that the Janu
airy earnings statement which will
now be coming out Will make the
same sort of favorable showing that
was made in December
Railroad Earnings High.
1t was said today that Baltimore
and Ohio would show earnings at
the rate of 13 per cent on the COM
mon stock, and this report caused a
brief upturn in Baltimore and Ohio
shares. Atlantic Coast Line was the
majority owner OF Louisville and
Nashville, and the principal benefici-
ary from the prospective stock divi-
dend had another upward whirl. But
these gains We're very soon Cancelled.
In the meantime the general market
was quite unreSponsive TO the
strength in these particular stocks.
Selling went on quietly and persist
emily in the equipments, motors and
coppers. oils. sugars and other lead
ers of the recent advance. While the
street was still asking itself whether
the upward movement had been
checked the fact was that prices had
unobtruSively slipped away until
shortly after midday, and point
losses were shown as compared with
the recent highs.
Review and Outlook.
Interest in the financial situation
today centered upon New York stock
market and its further reaction to
the advance in federal reserve dis
count rates.
II was seen that Wall streets first
professions of Indifference were a
good deal put on. There had been no
rush to sell stock on Friday morning
after the news was known. but it was
realized that an element of warming
was contained in the action of the
banking authorities and this brought
about a suspension of speculative op
erations for the rise. Through Fri
day and Saturday the market had
dragged without much apparent
change. But this morning as it be-
gan to dawn upon the speculative COM
munity that the main upward move
ment had been checked stocks came
out more freely.
A significant feature was again the
markets failure to respond to favor
able trade news. Another increase came
today in gasoline prices in the east
ern territory. while the copper metal
BECAME firmly established on the
1855 cent level. At the same time a
new high price for the season was
reached in the zinc market Yet
all this was quite ignored by the
oil, copper and zinc stocks.
Selling Spreads to Wheat.
The stock exchange was not the
only quarter upon which a halt upon
speculative activity appeared to
check showed in the wheat market
and in sterling exchange. Although
the recent advance in sterling above
s4.72 had solid enough background.
1t was accompanied. as all exchange
four years. by extensive speculation.
What the decline in the rate today
bringing 1t down cents in the
pound from the high, really indicated
"dS IMAM Une customary
drawing down of profits which had
accrued on speculative transactions
The continental exchanges did not
move with sterling. Francs were
slightly higher and marks about un-
changed. In other words there was
nothing in price movements Of the
day to indicate any change of feeling
in financial circles regarding the sit
uation in the Ruhr. Nothing hap
pened either in the money market to
suggest any further developments Of
Importance there.
Rails Shares Also Weaken.
At the low points of the day stocks
were down to three points in many
instances from their recent highs
The attempt to arouse greater inter-
est in the railway division didn't
prove a success.
Railway stocks lost all, and, in some
cases. ore than their forenoon gains,
in the latter part of the day. On the
other hand it could not have been said
that there was any important weakness
no urgent desire to unload. which Of
ten occurs after the elimination of a
prolonged advance.
All that happened was rather def
mite check upon a speculative cam
paign, which had been proceeding too
fast and appeared in danger of getting
out Of bounds. In the final hour there
was a general recovery, accompanied
by some moderate efforts to advance a
few of the industrial specialties
Copyright, 1921