Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-07-16
STOCK TRADING
AT A STANDST|LL
Weeks Operations Disclosed a
Conspicuous Lack Of Con-
certed Buying Power

New York. July l8.--It has been
years since Wall Street experienced such
, pronounced case of stagnation as
prevailed in today's closing stock mar
ket. During the greater part Of the
session trading was almost at stand
still. The low ebb of speculative interest
was illustrated in the sales OF The
hrst hour, usually the busiest period OF
the day: which barely totaled "a, 900
shares. Price variations were confined
to the smallest fractional limits. includ
ing even speculative specialties which
commanded foremost attention in the
preceding sessions. In brief the two
hours business was without feature of
any kind.
The weeks operations definitely
brought out two indisputable conditions.
First, that the market conspicuously
lacked concerted buying power, ard sec
ondly, speculative adjustments in many
groups Of the industrial division were
not yet completed. Offsctting this. from
long distance point of view. was the
undeniable testimony that constructive
factors were in the making. which in
evitably will exert powerful influence
in shaping the market trend. For the
moment. the market has Mpsed into a
traders gamble. Little, If any, sig
nificance is to be attached TO the day
to-day erratic variations. BY reason
OF the narrow limitations Of the existing
trading area. the list is always likely
to become either quickly oFersold or
overbought.
Recent Washington developments
would have been sufficient to have in
jected lot of enthusiasm II condi
tions were halfway normal, but the
fact remains that the market does not
AYI lI..
the very interesting question as to what
Is needed to liberate the financial and
speculative community from the gloom
and pessimism with which all hands
appenr to be saturated. The answer
undoubtedly would be found in the
reliable proof of a change for the bet.
ter in the industrial conditions which,
at the moment, are anything but en-
cournging. Earning statements and
other information coming to hand serve
to emphasize the wide ramifications of
the business depression, and this is
made more disturbing because of the
lack of evidence to show any positive
betterment in sight.
Coupled with the unsettling shrink
age of earning power is the disclosure
of the unpleasant financial position of
many of these concerns, suggesting diff
Guilty in meeting fixed charges and tax
requirements. Borrowing of money by
q corporation is all right at times, but
when business is poor. as 1t is at
present. it means an increased burden
with nothing in sight in the way of
profits to Offset IT,
In truth, many Of the concerns, so
flush in cash few years ago when huge
war profits were piing up now find II
quite lnconvenient to make both ends
meet. Not few of them were among
those companies that we're quite liberal
in given stock dividends and stock allot-
ments. Money poor" however, seems
to be quite a general disease throughout
the length and breadth of the land, If
not approaching close to an epidemic.
The responsibility for this lamentable
condition is not difficult to determine.
On the contrary, it is easily traceable
TO the staggering taxation. Therefore.
In the opinion OF number of competent
observeres, little real change can be
expected in the general situation until a
revision of taxation becomes an ac-
complished fact. Some months ago a
well-known authority stated the first
real signs of a turn would come from
Washington. The truthfullness of this
assertion is becoming more strongly
apparent each day. Washington, with
out question of doubt. holds the key of
the situation. Then 1t may be said in
the parlance of the street, keep your
eye on Washington. -