The sun., 1919-03-03

continue the brightest spot in the world.
Character Of the Speculation.
In the natural order of things a set
back had to come and therefore closing
recesslons were not unexpected. The
early advance had been rapid enough
to disclose vulnerable points with which
the bear operatLrs were perfectly
familiar. But the market during most
OF the week showed more sustained
strength than had been disclosed at any
time since the armistice was signed. 1t
has been a peace market, receiving pro-
fessional support, but sustained by the
sort of outside buying that had not
made itself felt for months. The prob
ability is that this participation ulti-
mately will enlarge and become more Of
n factor as spring advances. provided no
disturbing Developments are encountered
War hazards have disappeared, but re-
construction uncertainties have to be
reckoned with.
One of the questions which will arise
naturally in connection with further re-
sumption of speculative activity con-
Germs the probable attitude OF April in
vestors. This Is the season when the
market often has been stimulated by re-
investment OF quarterly dividends. dis
bursements of which will begin in three
weeks. A large portion Of January divi-
dends remains uninvested and the ques-
ton Is how much longer will the public
be willing to keep that huge surplus I'M
employed. There are heavy taxes to pay
and a large Government loan to sub
scribe to at a time when cost OF living Is
extremely burdensome. But the average
investor gets tired of carrying a large
trust company balance, yielding only 2
or per cent. interest when seasoned
securities are available at prices show
ing an income return OF 6 or per cent
The late recessions forced back the
highly speculative securities to a safer
basis and placed the market In a strong
technical position. The reaction had to
come for 1t was several days overdue
The chances are that when the upward
movement is resumed In earnest the out
side participation will enlarge and genu-
inc investment buying will become more
-. factor. These are some OF the con-
sderations which give peculiar interest
to the investment outlook at a time when
the Government Is arranging to test the
demand for short term securities with
the largest offering of the kind that tho
american public has ever bid for. The
increased speculative activity may be
helpful, therefore. in preparing the way
for "A genuine broadening of outside sup
port. which, when resumed. may easily
place the market upon materially
HI CHER price level. Such movement
, would be of service in developing a
/ market for many corporation loans
which will have to be provided for as
soon as the Government Offering Is out
Of the way.
Much of this financing is urgent and
would have been attempted before had
ND
bring out the Government loan in the
reached. therefore. a very interesting and
| 10 some extent a critical stage since
March. April and May frequently have
striking developments in the investment
situa ton. II must be remembered that
Wall. Street undertook its own price re-
adjustment long before the movement
gained Roadway In general trade. For
| this reason the process Is advanced fur
| Their in the market for securities than
in the markets for raw material food
! stuffs and commodities.
All these readjustments must come
about naturally and except In rare in
stances cannot be helped by recourse 10
artificial expedients The steel produc-
| ers took that view of the situation In de-
Ginning to commit themselves in favor
of any set programme for the stabilize
ton of prices as certain Federal officers
, had advocated. The probability is that
the industry will be allowed to work out
it's own salvation along natural lines
1t is significant that the most prominent
steel executive contends that conditions
! in the industry have not been rs bad
rs they have been painted and so far
as unemployment goes. the situa ton is
less depressing than 1t has been pictured
This Is certainly reassuring and sug-
geSts that similar stories about condi
! tons in other industries may have been
exaggerated. The fact to be remem-
| bered Is that the whole country Is en-
gagged in readjustment and the process
has been completed partially in many
lines. The chief problem is TO reduce
prices to a basis at which consumptivs
inquiry will assert itself An immense
amount of work remains TO be done and
the situation in some Industries Is urgent
enough to suggest that important ordere
will be soon released.
General Business.
| The country Is doing a large bushes.
| which I'm some centres ahnus cop sidsr