Evening Star Newspaper, January 21, 1923, Page 27

FINA WEEK MARKETS | * STAND UP WL Some Solution of European ! Tangle Believed Near by Many Large Investors. HOME OUTLOOK BRIGHT Foreign Situation Must Turn for Better or Worse Soon, Finan- ciers Declare. BY BYRON SELLER. Dispatch to The Star. V YORK, January 20.—J'rogress stablishing political and | commer. stability in continental Earope, if any has been made during the week, does not appear on the surface. e French have tightened their grip on the great German iron and steel valley of the Ruhr. The Germans continue their policy of passive resistance Deprived of the great bulk of their coal supply, “I is a question how long German in- | dust escape d How all this will help Franc £ plain. The British and Italian gov-| ernments remain anxious watchers of the port s And the reparations pr on which the future of all Kurope depends, is as far from settled as ever. But, notwithstanding all darkening clouds, the markets of the world are undisturbed Xcept mo- nentarily or in some particular se- curity commodity. It is at once one of the most surprising and inter- esting situations in financial history. 1t is true that the unfortunate Ger- man mark discovered new pos- sibilities in epreciation of quoted price, but no one now expects any- thing ¢ of mark exchange. Sterling xchange Firm, Franc exchange and French Bonds Rave weakened under the progress of events, but the wonder is that the decline has been so small. Sterling exchange holds like the famous rock which in British hands guards the entrance to the Mediterranean. The London money market, which might be expected to be disturbed were half he catastrophes to happen which are discussed in the foreign dispatches. shows no concern. i At home stocks go up easier than | they go down. Bonds and high-grade i investment securities generally are | heavy, but there has been a mar- orption of new offerings. s explanations are advanced to account for this paradox. The most commonly ac is that financial | a are forecasting and discount- | settlement of the whole ' tangle. Certain it is that| there is obstinate faith that a tion will be found. And this faith ex- presses itself in support of the securi- ties mark Early Turn Predicted. neh bonds made new 1 but at its close it was to say that even French bonds were easier to sell than to bu It may be, of course, that the markets | are all wrong and that the disasters which seem to impend will really o o | cur. but markets have an uncanny faculty of being right in matters like these, The only thing to do is to wait and sec. The walling ought not to be lo for the present deadlock cannot &0 on indefinitely. It is to be « erved that there are several possi ities in connection with the French invasion of Ger y | which are of interest to Amer trade: one of these concerns the cop- per industry. 1If all the German pur- chases of copper the to be cut off the | effect on the reviving copper market will not be small. If the iron and steel production of industrial Ger- | many. on the other hand. i$ to be| rhrottled. whether directly by French oceupation or indirectly by cutting | off the coal supply of the rest of Ger- | many, the fron and steel trade of other countries must be stimulated | accordingly. i Gold Another Factor. H There is always another factor than the European situation to be taken into account when considering the apparent strength of the securities market. That is the money situation. Our gold reserves continue to pile up, notwithstanding the efforts to force | more gold into circulation. The re- | serve ratio for the combined federal | reserve system was practically the same this week as it was in the cor responding week of 1922, The differ- ence is only one-tenth of 1 per cent. How far this factor is effective is ad- | mittedly a matter of opinion, but it | eannot be overloked in any thorough | analysis of the situation. \ As far as the trade situation is con cerned there is little change. Per- haps the most noteworthy thing is | the effect of rising costs of produc- | tion on forward. contracts. Even- ! 1ually rising costs at wholesale must | he transiated into rising prices at| retail, and how far the ultimate con- sumer will be willing to go is very doubtful. But no one seems par-| ticularly disturbed about this just now. can these ~———SCALE FOR INDUSTRIALS —— Auto Makers Unafraid. | At any rate, the automobile manu- facturers are not worried. on preparing for the biggest year in the history of the trade. Some peo ple seem to think that the rapidly | mounting expenditures for motor cars | e a dangerous sign of national e travagance. These doubters might be reassured by study of the savings hanks statistics, which show an in- crease in deposits for the year 1922, as compared with 1921, of about 500,000,000. During the same time building and loan assoclations in- creased 17 per cent in members and 15 per cent in resources. Not all Americans waste their substance, From a strictly investment point of view, the facility with which the great Anaconda financing, the largest industrial operation of its kind on record, was accomplished was _the outstanding event of the week. Tt is 1 the more noteworthy because of o doubts so freely expressed as to the detrimental effect on the supply of capital for industrial purposes that | might be brought about by the turn- & to tax-exempt securitles of im- vestors of large wealth. The income fax returns certainly show that more and more capital is going into state and municipal bonds_to avoid the heavy sur taxes. . Yet this dmain does not show on the total amount available for other investments. (Copyright, 1928) Jan. 28— General Cigars. q 5 Producers & Refioers pf., q. Jan, 24— Aliis-Chalmers Mfz., q. Jan. 25— Endicott Johnson, stock Jan. 2 Atchison, g..... Standard Oii'of of.. a Jan, 80— Toledo, St. Louls & Western Toledo, St, Louis & Western pf Jan.' 31— American Can. q...... American Smeiters, pf.. A Americap Smelters, p Fastman Kodak, extrs Norfolk & Western. adj. pf., ‘Tobacco Products A, COPPER MARKET QUIET. NEW YORK. January 20.—The cop- per market has remained quiet dur- ing the past week, and while most of the leading producers are asking 143% for electrolytic, that price has been shaded by second-hands and custom smelters, with _today’s quotations ranging from 14% to 14% . Iron was firm. EX-DIVIDEND TABLE. i | Betvits =f the w NCIAL. "THE SUNDAY The Year 1923 to Date on the Washington Stock E Up to and including January 20, 1923. urnished by W. B. Hibbs & Co., Hibbs Bullding. Sales. BONDS. $5.000—C. and P. Telephone 1st 5s.. 29.000-—Capital Traction 1st 58 - 13,000-~Georgetown 'Gas Lt. 1st os. .000—Pot. Elec. Power 1st a8 .000—Pot. Elec. Power cons, bs. 00—Pot. Elec. Power deb, 6s. 00—Pot. Elec. Power gen. 6: 000—Wash., Balt. and Annap. 00—Wash. Gas Light gen. 5s .500—Wash. Ry. and Elec. cons. 4s 3.000—Wash. Ry. and Elec. gen. §s 2.100—Wash, Gas 7s. 400—P. E. P. gen. mort. 7s. 1.000—Wardman Park Hotel 6s. Shares. STOCKS. 206—Capital Traction 115—Washington Gas 306—Wash. Ry. and Elec. com. 831—Wash. Ry. and Elec. pfd. 30—Riggs National Banl 10—Federal-American . 10—Amer. Sec. and Trust. —Union Trust . —Wash, Loan and Trust st Wash. Sav. Ban —Real Estate Title Insurance. . 48—Meergenthaler Linotype nston Monctype ashington Shares STOC! 1—Munsey Trust RANGE OF MARKET AVERAGES The following chart shows graphically the action of forty repre- w York Stock Exchange. nd including the close of the sentative stocks dealt in on the M covered is the past mcuth, up to Friday. January 19. The lower sec ket. DECEMBER — xchange. Open. High. 881y 9615 90 97 High. 100 Close. 100 Low. 100 The period market the relative of the chart indicate: JANUARY 8 9 1011 121315 16 17 18 19 1920 2 2 2% 27282930 2 3 4 56 : = =l B i | | (Copyright, 1923, Industrials, 1921. 0, December 15 63.90, August 24 Rails, 1921, 6, January 15 June 20 High Low. Twenty Industrial Common Stocks Used Are: Am Can Am Car & Fdy Am Locomotive Aw Smeiting Am Sugar Central Am Goodric Atchison M & St Paul imore & Ohio Del & Hudson Cunadian Pacific Erie Cles & Ohio Tilinois Central Daily Movement of Averages: Thursda: Friday Junuary January | Januar; U. S. BONDS AT A GLANCE 1922 High. 103.02 101.69 Maturity Date. Liberty Liberty iberty Liberty Liberty Liberty iberty 4th 44s ctory 434s.... United States 474s ® Closing bid. CURB STOCKS MAKE NEW HIGH RECORDS 100.4 101.. 101.¢ 101.4 101.4 \Week Sees Many Advances Instead of Declines, Due to Foreign Situation. By the Ansociated Press. NEW YORK, January 20.—The market during the past week was not disturbed to a substantial extent by the unsettled condition of continental stock exchange. Instead of interest being attached to declines, the chief impertance in market operations was concentrated in stocks in which there was vigorous and persistent buying. A number of issues moved up to new high records, among them being Durant Motors, which ranged from 75 to the new high record of 84, and the Indiana shares of that company, which advanced from 20% to the new high of 251. Glllette Safety Razor ! also made a new high, advancing from 267% to 275, and Glen' Alden Coal was prominent ' in the record-breaking group, moving up from 60% to 70%. The Goodyear Tire issues were strong and active, the preferred advancing from 303 to 361 and the prior pre- ferred from 70 to 79%. The common stock made a gain of 2 points to 1 Stutz Motor also moved into high ground, advancing from 213 to 24%. These advances were partly offset by recessions or narrower movements in other issues. Mining stocks came into greater prominence than had been attainad by them in several years. FEWER FIRMS FAIL. 'Totnl of 540, as Compared With 550 for Previous Week. Bradstreet’'s reports 540 failures for the week, as compared with 550 for the previous week and 646, 439, 104 128 for the corresponding weeks 192: to 191 The New England states had 35; middle, 138: western, northwestern, 5 southern, 148; far western, Canada had 78, against 9 for the preceding week. In -the United States about 71.3 per cent of the concerns fafling had $5,000 capi- tal or less and 20.3 per cent had from $5,000 to $20,000 capital. BOND LIST SPOTTY. NEW. YORK, January 20.—Further depression of €ome of the minor for- eign_issues, sharp recovery ‘in some of the speculative raliroad mort- gages and marked _irregularity throughout the rest of the list char- acterized today's _relatively. dull dealings in bonds. Listed bonds are still suftering from the lively compe- tition afforded by the flood of new issues, which have totaled nearly ,000,000 this year. Corn Products Gen Electric 100.98 100.02 100.16 98.90 99;1 i | .103.43, October 14 .. 78.59, January 10 Rails, 1922, . 93.99, September 11 3.43, January 9 l i i Leather Rep Iron & Steel Studehaker Texas Company U'S Rubber Stocks Uned Are: Northern Pacifie Reading. New Haven Southern Pacific Norfolk & Western Soathiern Rwy Pennsyivania Union Pacific TS Steel Utah Copper Westinghouse h Westera Uion January January January — 1923— High. low. 101.48 100.94 9890 98.64 9844 98.10 9910 9846 9860 98.12 9908 9874 9900 9842 100.32 100.20 100.04 99.80 'HEAVY PROFIT TAKING ' LOWERS STOCK PRICES Pan-American’s Plans Start Selling i of Industrials—Foreign | Exchanges Weak. Close Yesterdas. 101.26 *98.50 *98.10 Tield. i 333 407 { 414, 4341 438 4471 4.37 Low. 94.84 96.00 95.60 96.00 95.74 96.74 95.86 80 78 00 00 86 | By the Associated Press. | NEW YORK, January 20.—Selling 1 of the speculative industrial f&\oritca( | by traders who felt that the foreizn | | situation was too critical for them | They g0, exchanges or by liquidation that came | to remain on the long side over lhe} |into many groups of stocks on the week end imparted a reactionary | {trend to most stocks in today’s brief session of the market. although a few | | specialties, notably the merchandis- | |ing_shares. made some goou gains.| The reaction in industrials was accentuated by the heavy uqumnmn! of the pan-American issues, which 000,000 igsue of 7 per cent stock and increased from $150,000,000 to $205,- | 000,000 in the B common. Pan-Amer- | ican A got down below 86.for a net loss of 23 points and the B was off 1% on the day. The other olls| were also inclined to ease, California | Petroleum dropping % point and most | of the active issues showing fractional | ideclines. Marland, however, was| strong, closing nearly two DQ“I(S; higher. ! The so-called leaders, United States | Steel, Baldwin and Studebaker, all i closed fractionally lower; most of | | the selling representing profit-taking | ion the part of recent buyers. | Forelgn exchanges ylelded in re- sponse to selling pressure resulting | in the receipts of disquieting cable dispatohes from Europe. Demand sterling got back to §4.66 and French | francs broke nearly 20 points to, below 6.50 cents, as compared with last week’s high of 6.80 cents and the | oxtreme low_of 6.17 established last ! November. ~Belgian francs and Ital- ian lire alsc were depressed, while | German marks were quoted at .000051 cents, as compared with .000056 last night and the extreme low of .000042 established earlier in the week. CLEARING HOUSE REPORT. NEW YORK, January 20.—The weekly clearing house statement in loans. discounts and investments: 5,852,000 in cash in own vaults and $4,177,000 in reserve of member banks in the Federal Reserve Bank. Net deposits decreased $138,479.000 and time deposits increased $443,574,- 000. Aggregate reserve totaled $545,- 284,000, leaving an excess réserve of $17,136,440, an increase of $12,042,800 over last week. CANADA'S WHEAT CROP. OTTAWA, January 20—Canada's wheat yleld for 1922 was estimated today at 399,786,400 bushels, as com- pared with 800,858,100 = bushels in 19. The average yield per acre 17% bu: The value of the. wheat crop is given as $339,419,000. followed announcement of a new $25.- | STAR, WASHINGTON; BROADENING TRADE 1S NOTED IN STEEL Exchange Fluctuations Check | Buying in Copper—Lead | Remains Strong. l | i | By the Associated Press. NEW YORK. January 20.—Con- tinued active buying features the steel market with evidences of a steadily broadening trade. Production | is increasing moderately although limited in growth by labor and trans- | portation conditlol Prices firmer and irregularity higher. iron is in good demand firmer. Conditions in E UTOpe pected to increase demand he There has been no improvement demand for copper. Foreign buving | has been checked by fluctuati exchange and Iuropean ditions,” while buyers for consumption appear to have cove their requirements last month. I ing producers have shown little Pposition to shade the price of cents and appear confident, but some ¢ shading has been reported by second | hands and small lots of electrolytic are said to be avallable around 1% | he preliminary estimates of ted States geological survey ne with expe ations ndicating a reduction in stocks from 56.000,000 on Decem 31, 192 | 7.000.000 at the d of 1922, 8 easier. owing to unsettling | influences abroad lower fo BN markets and decline in foreign X change. Consumers and deal have been fair buyers on the decli i Lead remains rong. the h movement on cont s aving lit metal available for new business Zine steady, but demand is light from both ~domestic and export sources. Antimony continues firm, mand is less active, are Pig | with prices but de- WALL STREET NOTES. ¥ YORK, January 0. Products Corporation declared lar quarterly 2 per cent dividend, payable February of record February 1. Natfonal Enameiing and Stam Las declared regular quarterly 1} ent com on dividend, pavable March | + O k of record Februa T Equitable Trust Company nounces that interim or vidend of 10 per cent ared by Royal Dutch equivalent to $1.318 on each New York share. It will be paid Febru ary 15 to holders of January 30. dicott Johnson Corporation for vear ended December 31 reports net profit $5.6 30 after charges and tederal tax, equal after p: dend to $13.77 a share .850 outstanding inst net profit of $4,642,8% 79, in 1921. rbuckle Bros | Tron | regu preferred 15, stock an semi-annual | recently de Company, is 50 par on ve reduc Investment That May Yield 4% This issue of Gold De- benture Bonds— offercd in $100, $500 and $1.060 denominations—bears interest, pavable quar- terly. Youll_find them attractive. With the Londs are issued certifi- cates that entitle partic pation in the profits of the Company up to 87 making the possibility 14%, as you see. Partial payment of purchase may be made. Get our explanatory circular. Free for the asking Commercial Loan and Finance Corporation Bond Department. 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