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Show EFFECT OF BAD I NEWS IS SMALL Security Markets Ignore News That Applies to Industries By vi i RT P. WEST. Special CWfeapondent of The standard-Examiner. (Copyright. 1922. by Tho Standard - Examiner) NEW YORK, Aug. 5. The security markets this week largely ignored events and news with a direct application appli-cation to Industry because, for tho most part, such were closely linked up with the great strikes. Undoubted evidence that Iron and steel producers ivere having difficulty from fuel shortages short-ages seemed to be of less dismal Import Im-port than lt would have been on other occasions, as it was felt that an early ending of the coal strike would hange the situation completely. The prospect of a fall of railroad earnings In August from the July level availed avail-ed tho bearish contingent in the stock market little because speculators committed com-mitted to the rise were more impressed impress-ed by the ground swell of growing traffic s..,ri in the June income figures. fig-ures. STABUdTl OF STOCKS 67NUSUAB. From tome angles the relative stability sta-bility of stocks was somewhat curious. Enough blast furnaces had lo be closed down by August 1 because of insufficient fuel to redce the rated daily capacity, some 7,400,000 tons nder the output In July The correl-ary correl-ary to thl- pro , was th- slackening of operations at stoel works and the decline of steel company earnings. As Stocks conventionally seek to discount events far in advance, a decline in steel shares might have been looked for, but. on Ihe contrary, there were very few signs of soiling outside of operations of day to day traders STEEL SALES DECLINE, The steol market came under the unfavorable influence of declining sales to consumers who feared priority prior-ity fuel orders. In case of a prolonged coal strike, might react unfavorabl on their own huslness. Yet, long speculators spec-ulators and investors who acquired their stocks earlier In the year Were not moved to liquidate. Nor were fears Of further complications in the rail strike productive of extensive pressure against shares of the carriers car-riers When things looked darkest Norfolk Western and New York 1 entral reached up to new high points for this year or longer market srrrvnoN analysis The market situation seemed to lend, itself to analysis something along this line The actual damage of the coal strike to industry was as yet apparently appar-ently only In general t rms not to bo described in dollars and cents; be-foro be-foro the damage became severe; the: Strikes probably would end and be followed fol-lowed by a spurt In business and railroad rail-road traffic. in regard to tho rail-, road strike by itself, indications point-, ed toward a final victory by the man-1 agers which If attain, ,!, would work j to chock rail labor troubles; the evi- ' dent desire of coal union leaders to effect a compromise with the opcrat-j ors forecast a resumption of production produc-tion In time to take care of the Industrial In-dustrial needs of the winter months! hence, the seller of stocks stood a chance of buying back at higher prices Inter on. STRIKES END EXPECTED The final outcomu will Fhow, of course, whether such reasoning was sound It Ignored conservative report re-port that the steel corporation plants which were working ut 75 per cent capacity early In July, had fallen to 7u percent, while it- competitors had gom down iroin 7n and 75 per cent to around lili per cent h m.,,l .-mall allowance- for the possibility that priority pri-ority fuel orders would sooner OX later depress the activities of many 1 orpor-atlons orpor-atlons whoso earnings shape the market mar-ket position of prominent stocks. I u ' other words this confident view of the markot outlook was built veryj kurgel) on expectations that th strikes would not last much longer and ,,ubl not leave a dead hand upon manufac-l turlng fpr some time to come. ENGLAND'S CHANGED STAND. After 11 fortnight of almost COinpleti subjucation of foreign developments to domestic affairs, attention vsus this week drawn back rather abruptly to happenings In Europe Probu'dy uncertainty un-certainty over tho true meaning of 0 -OUrrenees over there had not a llttb to do with the cautious market operations oper-ations of the second half of the Weh It was something of a shock to find that the recent near agreement bo-tvvecn bo-tvvecn Fngland und France over O01 -man reparations had become Weakened Weak-ened materially. A month ago foreign news seemed to forecast a roductlon of the Frencu war debts to Britain. The statement by the British foreign office Of) Puts-day Puts-day that nil around concessions in I war obligations muts accompany a remission re-mission of the French obligation to England opened up a discussion which promised to be far reaching and of much Importance to International finance fin-ance and trade. V, S POSITION ON DEBT CLEARER On this side lt was Impossible to determine de-termine the part playe, by politics jo, keying In the week b events. Furthermore Furth-ermore the action of foreign exchanges ex-changes .-poke rather plainly of confusion con-fusion 1 nlhe forclKn 1 enters too The immediate result of disappointed Oer- I man hopes of British aid in the reparations re-parations situation and a new French -stun- toward the Ruhr valley, was a decline of the mark to slightly above ll-lD0thS of a cent, a new low point. Ibut a rally followed almost Immediately Immed-iately and sterling and francs were steady. 1 Some time probably will be necessary neces-sary lor the problem to ho unfolded so It can be understood here. But the renewed debate over allied debts had at least one result of clear outline It brought ref Jexes in official quarters quar-ters In Washington which showed that debt slashing involving tho sum owed to the United States Is not viewed view-ed with approval. nn |