Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-12-19
STOCK SHARES
CONTINUE WITH
UPWARDTREND
Predictions of Reaction Not
Upheld by Record of
Market.
SUGARS ONE EXCEPTION
Special to Indiana Daily Times
and Philadelphia Public Ledger.
By MONITOR.

and Philadelphia Public Ledger.
By MONITOR.
NEW YORK, Dec. 19.-Another week
has passed and the stock market con-
tinues to show strength in the face OF
predictions of reaction and operations to
bring IL about. Statisticians recount that
there have been ZIG days of practically
interrupted advance. At the beginning
of the recovery-if it may be called such.
and it deserves to be called mOre-the
rails were the leaders. This was largely
because the stocks of the carriers were
considered "safe" while the industrials
were not. Yet the most striking advances
have occurred in certain groups OF the
industrials.
This was easily applicable so far as
the oils were concerned, but no class OF
stocks related to the productive enter
prise of the country has been exemph-
unless it might be the sugars. Even the
stricken leather shares have advanced
under the impetus of increment in the
value of hides and the improvement In
the shoe manufacturing industry. The
copuers have fell the impulse of rising
prices for the metal. The equipments
have broken out of the ruth some
cases for special reasons, while other
edufpment stocks have gone higher be
cause of their present financial strength
and their future possibilities
IMPROVEMENT IN
MOTORS NOTED.
Motors have improved; the rubber and
tire stocks have responded to 4 more
hopefuI outlook, as well as the appre-
citation in the price of crude rubber which
has added to the value Of inventories
The steeIs have stiffened, not because
business was good, but because 1t was
better and promised to lie still more so.
The same tendency has been manifested
in every group in the list and has EN-
braced those unelassified issues that are
known as "specialties."
In part, the advance has been due to
the irresistible assertion of optimism
the speculative instinct that argues that
as conditions probably will not be worse
they must be better. The technical posi-
tion of the market has been strong.
Speculative holdings of stock are small;
there are yet few signs Of such an in
crease as to bring it to menacinS pro-
nortions: professionals, ever cynical, have
sold short only to cover at loss.
In all this time the market has had
the backbone Of an investment demand.
At least that is what it has been called.
Securities of fixed date and fixed inter
est bearing return have been bought, not
so much because of investment attractive
ness as for the reason that idle funds
were accommodating and purchases Of this
character furnished the best means for
their employment. The movement started
with listed bonds, and. then absorbed new
issues. Later it took up the preferred
stocks. and then it went into the seasoned
dividend payers. It found its reflection
In the stock market in the Standard Oils,
General Electric, American Car and Foun-
drv Company and numerous other
specialties-
Nevertheless. faith in the future was
lacking. Market experience said that the
buying movement must exhaust itself. 1t
has not done so. OF late there has been
n growing feeling that the life food Of
this new capital would exert stimulat-
ing effect upon all industry. Companies
that have needed money for expansion,
Improvement. equipment and other pur-
poses have been able to provide them
selves with funds through ministering to
the popular appetite for bonds.
One incident of the week has been
the Yale Of S55.OOOO0O of New York City
bonds at a price that would have been
impossible short time ago. This is not
so much a tribute to the strong financial
position of New York or the desirability
Of its securities, as an evidence of the
persistent tendency of capital to seek tax
exen pit issues.
By the end Of the year, it IS believed
there will be more or less selling of GER
tain issues for the purpose Of establish
ing losses. Under the statutory pro-
visions Of the new revenue law these
stocks cannot be bought back within
thirty days. Selling OF this character, it
is believed. might easily make its ap-
pearanee among a few Of the standard
rails that are lower than they were at
the beginning of the present year. On ac-
count of the fact that these stocks have
a fairly assured future, it is believed
that they will be picked up again after
The turn of the year. Consequently those
who make fresh purchases of these issues
on recsssions between now and the first
Of the year, may be able to get them at
relatively attractive prices.-Copyrigh
1921. by Public Ledger Company.