Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-11-28
MARKET PROVES
PUZZLE ON SIDE
OF SPECULATION
Surplus of Funds Explains
Ready Buying of Stable
Investments.
FUTURE TURN QUESTION
Special to Indiana Daily Times
and Philadelphia Public Ledger.
BY MONITOR.

BY MONITOk.
NEW YORK, nov. 2S.-As the week
closes it is admitted by the majority of
the speculative fraternity that any con-
sideratiOn of the market for the last
few days must start with an Interrogation
and end with a question mark. Put in
the form Of concrete inquiry the PROPOSE
lions might be stated as follows: What
has happened and what is going to hap
pen?
In some respects the market has con-
founded the prophets. Predicted reac-
tons failed to materialize and strength
has made its appearance in unexpected
quarters. Even the rails. neglected be-
cause of the discOura cement resulting
from the fading prospects of the funding
bill, the remote promise of a reduction
in wages that would tend to increase
traffic, have broken out of their rut with
an OutbuTst of Old-time buOyancy. Mean
time certain specialties have scared; oils
and coppers have stiffened after their
relaxation from profit taking; and the
whole market has been Frightened up by
a spirit of confidence.
EXPLANATION
NOT VALID.
The strength of the technical position
IS not 4 valid explanation. After an ad-
vance Of more than seven weeks one
ceases TO emphasize that sold out and
oversold condition of the market, and be-
gins to talk of reactions in order to cor
rect an unhealthy speculative condition.
Nor does the improving economic outlook
furnish the clew TO the secret. Trade and
industrial reports are better, but they
are still far from brilliant
Inevitably we come back to the grow
ing ease and abundance of money. Not
only is all fear Of a financial collapse
behind US, but weekly we are reminded
of our growing strength by the rising
ratio of the Federal reserve banks, which
now stands at the record figure of 72.3,
compared with A per cent for the cor
responding week last year. 1t is more
than confidence in financial stability
that is responsible for such movements
as the stock market has witnessed in the
last week. It is plethora of money. It
is an abundance for investment that has
OverfOwed after cleaning up the market
in gilt edge bonds, after absorbing new
issues at a surprising rate, and after de-
pletinS the supply of unimpeachable
preferred stocks
Plentitude of funds and efforts to OBJ
tain safe and attractive yield have
been responsible for the buying that has
made its appearance this week in such
standard issues as Reading, Atchison.
Southern Pacific, Union Pacific. Norfolk
& Western and stocks of similar stand
ing. Ii was cutie natural that the rise
in the standard rails should attract buy
ing to certain issues that are expected
soon 10 reflect the improved position Of
certain companies. When the rails ad-
vance the movement is not confined en-
tirely to the seasoned dividend payers.
Hope and gossip play their part in the
case of less favored stocks.
There has been also quite a searching
out Of desirable specialties-stOcks with
an assured dividend based on stable
eairning power. This accounts for the
strength in the Standard Oil stocks, Gen
eral Electric and Otis Elevator.
It begins to look, therefore, as If the
market was completing the Investment
phase and entering the zone of Specula-
tion. The action of quite a number Of
stocks in the oils, copper, equipment
and steel groups, as well as several spe-
cialties. are beginning to reflect prospects
Of 4 hopeful character rather than stable
assurances.