Douglas daily dispatch., 1926-07-22
STOCK PRICES
BREAK SHARPLY
ON WEDNESDAY
(By Dispatch A. Z. Mlrel
otal stock sales 1,665,2OO shares.
(By Dispatch A. 2. Wirel

NEW YORK, July 21.-The stock
market was completely upset in the
midst of promising rally today by
the publication on financial tickers
of Paris reports that the Bank of
France might be forced to suspend
payments to the French government
within a day or two in order not to
exceed the legal maximum of note
Early gains of one to nearly 10
points in many stocks were wiped
out, or substantially reduced, the gen
eral market closing lower on the day..
At the same time, the French franc
dropped from an early high of 2.2O
cents to 2.09 cents and then rallied
slightly when it became known that
the early Paris reports had been ex-
aggerated.
The first dispatches on the tickers
quoted the French finance minister as
saying that the Bank of France
might suspend payments After an
appreciable delay, the tickers Eek
planned the statement applied solely
to payments to the government and
had no connection with the solvency
of the central banking institution.
The Associated Press cable dis
patches meanwhile gave the correct
version on which was that the treas
ury might have to suspend redemp
tion of national defense bonds be-
cause of insufficient available funds.
Wall street was thunderstruck at the
erroneous announcement, emanating
from another news agency, however,
and rushed to sell stocks.
NEW YORK, July 21.-Stock prices
broke sharply just before the close
Of today's market after having given
indications earlier of resuming their
upward movement.
The sudden drop coincided with
the publication of reports that the
bank of France might be forced to
suspend payments to the government
tomorrow the legal limit of note cir
culation or advances to the state, or
both, had been reached.
The early advance had been based
on favorable domestic trade develop
ments The statement in the weekly
steel trade reviews that July produc-
tion and demand were exceeding ex-
pectations was followed, after the
close by the resumption of diyidends
on Republic Steel common. The
Chrysler Motor Car company reported
deliveries of 91,857 cars in the rfist
half of 1926 as against 68,250 in the
corresponding period of last year.
Money continued relatively easy with
large supplies available for stock
market purposes.
The so-called Durant stocks fea-
tured the afternoon rally. General
Motors was bid up from 164% to
17OA, or within a small fraction of
the record high, only to fall back to
1861, off u net on the day.
U. S. Steel common closed over a
point lower at 141, after having sold
as high as 1879 Early buying re-
vived rumors of melon cutting at the
July meeting of directors, but in con-
servative banking quarters no special
dividend is expected before the Octo-
Der meeting Republic Steel crossed
60 and then slipped back to 57%, up
"a net
New peak prices for the year were
recorded by a number of specialties,
including Air Reduction, Texas Gulf
Sulphur, Brunswick Bake Collender
and Greene Cananea Copper. Anacon-
da Copper duplicated the years high
of 81, while Lorillard tumbled over 4
points to a new low at 32% on re-
ports of disappointing earnings.
Marked heaviness also was shown by
Dupont, General Electric and Pull
man.
Rails lost ground with the indus
trials, but the declines were not as
large. Pere Marquette preferred
broke points to S5, presumably on
liquidation inspired by speculative
disappointment of holders of that is
sue over the revised Nickel Plate
merger terms of exchange.
Commodity prices continued mixed.
A n