Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-10-13
UNDERTONEO OF
MARKET is ONE
OF FIRMNESS
Gradual Hardening of Prices
Held Sign of Returning
Optimism.
OIL RESERVE NOT LARGE
Special to Indiana Daily Times
and Philadelphia Public Ledger.
BY MONITOR,

BY MONITOR.
NEW YORK, Oct. 13-Although price
movements on the Stock Exchange ar,
confined within a narrow range with thu
exception of a few specialties that etthel
are under pressure or which are made
the subject of bullish activity by pools
the undertone is one of unmistakablt
firmness. There is an utter absence o.
the depression and uneasiness that ex
listed about this time last year and which
finally expressed itself in a drastic period
of liquidation and decline. At present
this appears to be no expectation of an.
pronounced bullish activity, but the grad
ual hardening of prices in various groups
may be considered a reflection of return
ing optimism.
At present this is manifested mos
strikingly in the oils and in the coppers
In some respects the position Of these
two groups is similar. if not almost iden
teal. The chief point of demarkatiOI
lies in the fact that reserve stocks o.
petroleum are not large, while the surplus
of copper is still burdensome. Just as IL
the case of oil when the decline checked
drilling operations, so the poor marke
in copper metal has restricted production
and demand is gradually eating into
stocks on hand
DOMESTIC OILS
IN ASCENDENCY.
The domestic oils at the moment arr
in relatively stronger position than any
other members of the petroleum group
Production in Mexico, as well as import:
from that country, have fallen off mate
rally, and the bidding up Of crude price:
may be interpreted as an effort to stimu
late oil production in this country. Those
companies that have large proven acre.
age, such as California Petroleum, Pacific
Oil, Union Oil and Texas Company, drC
believed to be facing period of sustained
prosperity. 1t is probable that the South
American copper companies with theil
low labor charges and smaller production
costs will be the first to respond to a turr
in the copper situation.
One striking incident of the week ha:
been the sharp rise in foreign exchanges
The movement, in the belief of interna
tional bankers here, has been largely
speculative. According to rumors, Ger
man banking interests were thoroughly
imbued with the idea that the decline If
the mark would have a serious adverse
effect on other exchanges, particularly
sterling and francs. When the mark was
making its new low level around .78. /,
Is SAID that German SPECTATORS in for
eign exchange went heavily short OF
British and French currencies. Their GOV.
ering in the last few days is said to have
been responsible for the rise.
AGRICULTURAL "BLOC"
DISTURBING FEATURE.
One of the most disturbing features Ct
the present situation is represented by
the attitude of the so-called agricultural
"blOc" in the Senate, which has declared
itself unalterably in favor of a surtax
maximum of so per cent, as well as a
maximum Inheritance levy of 30 per cent
in view of the fact that the President has
taken the broad position that the tax in
the higher brackets ought to be reduced
in order to stimulate enterprise and re-
live the business of the country from an
intOlerable burden, the action of tbs
Western Republicans cannot be regarded
as otherwise than representative Of &
short sighted and mistaken policy. These
high taxes do not constitute a personal
burden. They do not interfere with the
individual consumption of those on whom
they are levied. They merely interfere
with their Industrial and business DC
tivities and to this extent react unfavor-
ably upon the community.
1t will be interesting to note whether
the legislative element responsible for
this movement viii! maintain its stubborn
attitude in the face Of enlightened public
sentiment.-Copyright 1921, by Public
Ledger Company.