Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-09-05
IMPROVEMENT
NOTED IN BANK.
:. LABOR CIRCLES
Industrial Situation Improves
Through Wage Readjust-
ments and Lower Costs.
DISCOUNT PEsSLMISM
Special TO Indiana Daily Times
and Philadelphia Public Ledger.
BY MONITOR.

BY MONITOR.
NEW YORK, Sept Sat the close of
the weeks trading on Friday, there was
nothing IN the market that was more pro
nounced than the prevalence Of pessi
mism in professional circles. To the av-
erage trader in stocks, this Is most con-
vincing. To the student who follows the
history of market movements. there is
nothing that is less so. Professionals do
not make markets, although they may
be responsible for minor fluctuations
They try to follow markets, and it is in
their constant effort to keep step with
the tendency that they make lose for
tunes.
Mob psychology plays its part with
professionals, as well as with the outside
public. The cOntagion Of pessimism or
optimism guides their operations far
more than Independent and individual
analysis.
PROFESSIONALS
ARE PESSnuSTIC.
These general observations are by way
OF preface to a setting forth Of the mar
ket views OF the talent" on the floor Of
the stock exchange and in some Of TIL
leading brokerage concerns. These gen
tlsmen do not believe an advance is pos
ssals except as an ephemeraI or passing
RaSy While they admit the presence OF
constructive factors in the situation, they
are inclined to minimize their influence
rom market standpoint. The elements
which they believe win be dominant
might be enumerated as follows:
1mprobability of essential legislation
oy Congress In fact. 1t is believed tax
alton revision viii be neglibIe in its bene-
ncfal effects and that the tariff IegisIa-
tlon Will be barrier in the path of
world recovery. 1t is believed numeP-
Gus commercial failures Of magnitude
VIII have to take place. Another bug
bear is labor trouble and labor unrest
and the unsettlement incident to wage
reductions and widespread unemploy-
ment. Probably most important of all
is the depressant 1t is believed will be
Supniied by another orgy OF selling late
In the year ito establish losses" This
process, 1t is argued will he a feature
IN every year where there are losses to
establish. The chart players" are
among tha most rampant of the bears
Ihey argue that no decline ever termi-
mated where the lines on the graph
showed merely a disheartening drop with
Feeble rallies. Until those lines record
sharD and almost perpendicular dron
the chart fend would be violat ting All
the principles Of the art if he bought
-der the delusion the depression was
Fat an end.
IMPROVEMENT
An EEsAF LINES.
Undoubtedly this array makes out =
powerful case for market pessimists. II
is, nevertheless, worth while to note i'm
provement in our banking situation. i'm
proVement in the industrial situation
through wage adjustments and lowered
costs OF production. \ most unexpected
and welcome change has been wrought
IN the status Of a large portion Of our
agricultural population through the rice
In cotton and the growing strength Of
the grain markets. There are many good
judges Of price movements in wheat. who
predict 81 bushel, for this commodity
before another crop begins to move to
market.
Sooner or later these factors and many
others OF favorable nature will assert
themselves, and t remains to be seen
whether the recovery necessarily must be
preceded by the earth shaking collapse
predicted by the professional market ele-
ment.-Copyright, 1921, by Public Ledger
Company,