Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-09-24
WEAKNESS OF oils
CHECKED RECOVERY
week's Events Disclosed Con-
cIusiveIy Line of Least Re-
sistance Is Upward

49, York Sept. 24.--Quitc a good
nov ,.ooii1ina was encountered in to-
eea, closing stock market, producing
Gay dorable irrcgularity in price
eoou,ent, eonot TIE recovery WINS resumed
NOV roils Mt the opening and further
tn Wv uo,tiol advances were registered IN
slos'an as.mn on the strength Of the sule
nat corinment notes which, 1t Is be-
Wy Wiri release large amount of
ne.vu' oredits. and which, in turn, VIII
iro1em ro,sGral all around. The indus
DC Ji,.ieions developed q reactionary
uIan, un,nnv Immediately following the ini.
tenuejn ejn,i;ngs M n result OF tho liberal
hai .,na sales. Heaviness of foreign oils
ralhiIhs restraining influence. Royal
G..s Ger.evd vdeclined almost five points, Next
pu'Tpb Tpbotrolcum 3A and General, Asphalt
can rs.,t rs,natro Tobacco continued to
IN Sod on its unfavorable financial
TeatnS Rails we're one to three points
snow. snoSw,nt a. their best but yielded prae-
higImer aIl their gains in the final deal.
ucah' T'he cheaper domestic oils and
hsS, hssrre specialtles made Irregular gains.
'0' c'..,;n elements injected into the
oniot;ve situation the current week
epesubve have been mystifying and mis-
may S;,1 n ouite good many, yet upon
lsau,ns ua nssxamination 1t was not difficult,
el0ST SITisting,ish that the line Of least re-
nncn 70 uo was always encountered in the
hs.aJ ID moyement The market bet
up~snt however, was backed up BY q
Wih W.uho, ~ substantial constructive de-
ian,nents ny~ and bullish factors. Like
=. al preliminary stages OF a major
moyement. manipulatlve tactics played
sn ;mnortant part in tho further up
sm .nrn of security values. Because of
tSs thoroughly ,liquidated state Of the
market. the movement was highly sue
sessful and was continued at the ex-
nsn,e Of A stubborn short interest. 1t
L natural. after having almost unop-
nosed domination for neYrly twenty two
months, the bear contingent, which Is
not a small one by any means. is
dIsposed to contest every inch of the
recovery. All the tricks of the trade
have been and will be applied in the
attempts to counteract the constructive
program. While they may be success
mi in producing periodical halts, it is
quite obvious, no matter what may be
saId to the contrary, they have COM
pletely lost their grip, which will be
difficult to attain again unless some un-
iorescen catastrophe occurs.
The radical change in the complexion
AZ the market situation is due to q
number of contributing as we'll as in
toestng incidents. Primarily among
these transitOry factors is the genuine
and far reaching improvement In the
financial or money situation. First
proof of which is supplied in the unde-
niably stronger banking position. The
progressive correction of the over
strained credit situation Is evidenced in
the automatic reduction of the redis-
count rate by the Federal Reserve Sys-
TEN. This is certain to have far reach
Ing influence on the investment markets
and bring about complete readjust-
rient of the income basis of the bond
market and later find reflection In Y
general realignment of security value
basis. Piling up money at the reserve
centers ordinarily would not be con-
tidered altogether healthful sign. To
come extent it IS not so, even at this
time, yet there is comfort in the knowl-
edge. it represents speedy advancement
in the solution of the problem Of thaw-
ing out the troublesome frozen credits.
In brief, 1t is a clear cut indication Of
rapid clearing of the financial skies,
which. after all may be snid and done,
Is really the real foundation of the hope
OF returning business activity and ma
tional prosperity.
Supplementing the unmistakable
easement Of the money situation, more
direct signs of betterTent in the indus
trial and commercial situation are be-
coming visible. The requickening of an
dustrial activity, it is true, is still q
plant OF tende growth. 1t shows the
wind is blowing in the right direction
and the force of the business deprcs
sion has been spent. No doubt the
progress of convalescence will depend
largely upon the legislative happenings
al Washington. II the cut out pro-
gram Of tie Administration could be
carried to early fulfllment, there is
nttIe doubt but that the comeback would
oe accomplished by much more rapid