New-York tribune., 1919-10-13
In Wall. Street


Rising strength of speculative sccu-
rites in the week just closed demon
strated in rather convincing manner
that the buying power behind this
market is of hugo proportions and is
not restrained by the current unccr-
tainties. The market appeared to have
gotten back into the full swing Of
the rise interrupted BY the decline Of
August. Trading from day to day dur
ing the week was on the most active
scale since July; industrial stocks
mounted steadily higher; and the mar
ket assumed unusually broad proper
tions, especially at the end Of the
week, when there were sessions in
which more than 500 different stocks
were bought and sold on the EX-
change. The enthusiasm of the spccu-
lation for the advance was such as to
bring confident predictions from old
observers that still higher prices are
in store for many of the industrial
stocks.
Although professional traders played
a most important role in shaping the
course of prices on the exchange,
the public came into the market on
much larger scale than in weeks;
in fact, outside participation was the
most active since the resumption Of
pecialists-that is, the less seasonc
stocks--furnished the market with daily
pyrotechnics, which took the form Of
the sensational flights in prices to
record high quotations, but the stand
ard issues also shared in the general
uplift, giving the market much bet
ter appearance than would have been
the case had the improvement been
limited to volatile spccialties. Prob
ably the most striking siugle move
ment came in the steel shares. Here
progressive Improvement occurred on
heavy buying, particularly in the case
of United States Steel common stock,
which reached a price. me%e than 10
points above the low level that ob-
tanned at the time the steel strike
was called in September. Tho gem
eral rise in steel stocks was Wall
Streets further response to the news
Of the week, which indicated that the
strike has actually broken down. Re-
ports from the steel-making centres
told Of further desertions from the
ranks of the strikers. A compromise
was reported In the Youngstown dis
trict, and elsewhere it appeared that
men were rapidly returning and mills
getting back to more normal operat-
ing basis. Everything went to show
that the first conclusion reached by
the financial markets that the strike
would fail had been correct.
Among the other important construct
i've influences on market values were
the more hopeful reports regarding the
health of the President, the ending of
the shipping strike in England and the
prospects that the treaty of peace will
be ratified by the Senate early next
month. These factors at least served
as the basis for aggressive operations
on the constructive side Of stocks. and
with an absence OF investment liquida-
ton, together with the existence OF a
persistent short interest, prices moved
ahead With vigorous momentum, hold
ng strong to the end of the week. The
)oint was made last week in conncc-
ion with the sturdy tone displayed by
stocks generally that investors are
still taking large amounts Of securities
out of the market. This has. of course
tended to reduce the floating supply
making 1t easier to push prices for
ward. At the end Of the week there
was a disposition on the part of most
of the large brokerage houses to ad-
wise greater conservatism in the mat
tire of speculative commitments. on the
ground that while the trend may still
be sharply upward the market has haC
rather pronounced recovery ana set.
backs are to be expected as q matter OF
course. There is no doubt that the
establishing Of record high prices ir
many unseasoned industrial stocks
through out and out manipulation has
impaired the strength of the marke,
structure. What saved the reputation
of the market last week was the fact
that the better class of securities also
moved ahead.
A greater degree of interest was seer
in the railroad stocks last week, where
for time there appeared signs Of &C
emulation. Hopes of early relief fo1
the roads in the shape Of increased
freight rates was dispelled by the state
ment OF the Director General tina
nothing of the sort is contemplate,
during the period of government con
troll. IT was sugge sted,. however, tha
the railroad corporations, if they wisl
to push the rate matter at this time
should undertake an investigation t,
determine what tariffs they believe ar
necessary, and place them before tn,
proper authorities for review
The big play in the market las
week camc in the industrial issues. |
resulted in carrying the average pric
OF thirty standard industrial stocks t
the highest price in the history o
the market. At the peak of the move
ment the average stood at 1861, whic
was fully 2 points above the top o
the advance that eliminated in JULY
The week before the average stood a
ll0.43. The low price Of the year TO
the average was 1920. A year ago tn
average stood at s4so The averag
Of twenty railroad stocks. now aroun
TO-. is fully eight points under tn
high Of the year and less than fou
points above the low. The movemen
of the averages shows in striking man
ner the extent to which the speculato
for higher prices has been concer
trated in the industrial stocks to tn
comparative neglect Of the rails.