Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-05-14
CLOSING MARKET
WAS VERY ERRAT|C
Tee hni cal Influences Out
weighed Fundamental Improve
ment During the Week

New York, May 14.-Movements in
the brief session of today 3 stock mar
ket were marked by extreme irregulnrity.
and in scattering parts of the list were
quite errntic. The indefinite trend was
without particular significance, except
that il served to emphasize the ultra
professionalism of the dealings Tue
conflicting and confusing price move
ment was largely the outcome OF the
familiar week end evening opera
tions of the professional traders Lib
eral covering of shorts in some quarters
was Offset By profit taking and scatter
ing LIQUIDATION in other sections. Inc
wider variations occurred in the highly
speculative specialties, such as General
Asphalt, Sears Roebuck. Atlantic Gun
and West Indies. American Sumatra
Tobacco. Mexican Petroleum and cru
chile Steel. The nervous grratlons IN
these issues naturally affected tho lndl-
vidual groups TO which they are popu-
larly attached. The fluctuations. now
ever. in the general list were rather
narrow.
The cross currents with which tn"
entire market was heavily charged were
without rplation to outside develop
ments. excepting the possibility OF Il
more stringent money market next week
as a result OF the heavy financial opcr'
ations which must be arranged for.
The weeks development quite plainly
and quite forcibly demonstrated that
neither time. events nor conditions were
as yet just ripe enough forN any pro-
tracted forward swing in the security
markets. Efforts to realize the sub
stantial profits accruing from the splr-
tied upward swing Of the preceding fort.
night revealed in the first upon what
a f1imsy superstructure the speculative
movement had been built. II likewise
disclosed the highly manipulative char
ac.er of many of the individual demon
strations and at the same time CAV"
striking circumstantinl evidence OF 1t
still being distributing rather than
an accumulating market. In addition
there was convincing testimony showing
the dominating influence of technical
conditions as the governing factor. rather
than changes in fundamental and eco
nomic factors.
No one will deny the satisfactory
progress in the correction of the funda .
mental and economic situation. no mat
ter from what angle II is measured.
The market. however, has shown con
clusively once more the enhancement
of security values far outstripped the
extent of the improvement accom- =
DllH0eU. IN OIuPI NVlhS' pii''N w -
marked up far ahead of the bettcrment
registered. or in the parlance of the
street. had overdiscounted it, Coupled
to this was the recognition in some
cases. notably attending the motor In
dustry. that earlier estimates of the
swing back to normal conditions had
been over exaggerated, or expectations
had been over -sanguine. In fact, in =
stead of the promised boom. there are
now repeated whisperirgs of a disastrous
trade war. The latter is likely to prove
as much magnifed as the previous op-
timism.
While it is granted on all sides ma :
terial progress has been made in the
de1ation process, accruing testimony
constantly crops out. pointing conclu =
sively to incompletion of the liquida
tion. A forcible reminder of this fact
Is ever presented in the dividend re-
ductions and omissions and the charginG
of Of tremendous inventory losses. II
is true much of this. from market
relative measurement, has been dis
counted, but its presence naturally
serves to stunt the growth of the slowly
returning confidence.