The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-21

| Seu'hB HcdNy pTOnt taxing IN various
groups OF stocks that had shared In
the last two months spirited advance.
The public was more OF factor, which
accounted for the ready absorption OF
offerings by the professional element.
The market gained breadth and in some
quarters reflected an exceptionally
strong undertone with the best buying
seen since the present bull movement
began. In variety OF stocks traded in, as
we'll as In consistent resistance to SELL
ing pressure. the demonstration was the
most noteworthy of any time since the
crushing defeat of the Central Powers
became apparent.
Wall Street, as usual, Is viewing the
| things near at hand. The public has
been accommodating stocks In the belief
that the world scarcely has begun to
realize the good effects Of the peace pact
One has only TO recall the long period Of
drastic liquidation with terrific declines
that preceded beginning of hostilities in
1914 to appreciate that recent advance
, In security prices in anticipation Of
, formal ending OF the world struggle has
been. In comparison, extremely moder-
ate, which does not mean that the pace
In some issues has not been too rapid
| nor that the technical position of the
market has not been weakened by sus-
tained rise that has occurred. But the
thing to remember is that the world of
1919 Is very different from tho world
of 1914.
An unparalleled amount of new busi-
ness will be released BY the signing of
the peace compact This Is natural.
since the world war has been the great
est deterrent to constructive enterprise
with which civilization has been ham
pered. Inasmuch as the United States
has emerged from the struggle inoom-
paraoly stronger financially than ha -
any other nation involved in II, is Il
not reasonable conclusion that this
country will be In a position to benefit
enormously from q formal declaration
OF world peace?
Our Part I'm Reconstruction.
1t is apparent that a thirty point rise
In security prices (the advance in many
sections of the market has not been half
as great) has not discounted the world
wide changes that will follow from the
release Of tho business that has been
was signed. II this nation has played
the part OF banker and merchant prince
for the rest of the world during the war
and In the interval since the armistice
was signed II will be certain to get all
the reconstruction work that It's indus
tries can take care OF while Europe is
repairing It's overweight Industrial
mechanism. including that portion Of It
actually dismantled by the Germans
Any thoughtful view of the outlook
shows that there is a good deal for the
stock market to become excited about
IN discounting the myriad of helpful
influences which will be set In motion
as soon as the Versailles conference
completes its task. This goes far to ex-
plain tho Indifference Of the stock mar
ket to the stagnation OF tho steel indus
try as a consequence of the break down
OF the Redfleld plan for price stabiliza-
ton, tho bad showing of the railroads
under Government control as emph asked
by the shortage OF S27s.o00. 900 for the
fourteen months ended with February
the distress of the copper industry re-
sllt!ng from the immense oversupply OF
the metal. the continued unrest Of labor
and the unsettiement reported in var,ou,
branches OF wholesale trade.
Tho action OF industrial companies In
cutting dividends to reduce expenses and
make good a portion OF the losses sus-
ta'ned from falling of in business has
been ignored by markets Of the last few
days. The indifference recalls the fall
ure OF the market a few months ago to
heed highly encouraging developments at
a tinre when II seemed as II peace was
a long distance off. The present move
| ment Is not illogical. viewed in the light
OF what took place in the stock market
under quite opposite conditions a year
or so ago.
Advance In hank stocks.
The sharp rise in bank shares has
been in response to feeling that the
great lending institutions OF Wall street
would profit handsomely from the bust