Evening star., 1921-02-26
WEEK OF MANY FLUCTUATIONS,
INFLUENCED BY CROSS CURRENTS
Business on Restricted Order, With No
Large Buyiing-1ndustrial Corporations
r Put In Order for New Conditions.

alternative would be an almost total
loss of the export trade.
Stocks. Money, Exchange.
The attitude of the financial markets
on the eve of the London conference to
discuss German reparations is one or
much caution, combined. however. with
a quiet refusal to accept the misgivings
and even peSSimiSm expressed in the
press dispatches.
! The foreign exchanges lost ground
early in the week under selling by
spectators who wished to be clear
of the market until the outcome Of
the London gathering could be fore
seen, but the way in which most OF
this loss was subsequently recovered
expressed the real Judgment in bank
ing circles. Like all diplomatic situa-
tions. however, this is one which
promises to alternately blow hot and
cold. 1t suggests moments of concern
for the markets of the next few
weeks and other moments when the
uncertainty will seem to be relieved.
Breathing Spell in Stocks and Bonds.
Both bond and stock markets have
fulfilled in every respect the antici-
pations of a week ago. Finally, the
syndicates bringing out new invest
ment issues recognized that they were
OVERRIDING things. that the market was
congested and that the public appetite
had been satiated. Accordingly. a
halt was called upon new offerings
to give time for the newly issued Sc
curities to pass out of the hands of
dealers into those of permanent in
vestors. 1t will be well if this breath
ing spell is allowed to continue for a
while longer. The investor has at
length learned that he is in danger
OF missing a golden opportunity If
, ne goes slow.
As for the stock market, it has. as eX-
pected, been very discriminating affair.
The decline which eliminated in Decem-
Der measured very thoroughly the
processes of readjustment in the finan-
cial situation at large. The recent de-
cline has been a secondary reaction
which has not been due to general causes
but rather to special causes affecting
particular issues. Where dividends have
! been cut or passed. or else where annual
| reports have appeared, making a worse
| made new low records. But the list in
general is we'll above the December aver
| age. and at no time has there been any
. sign of renewal of the sort of liquida-
! ton which characterized the panicky
| times toward the close of last year.
Market Issues.
The modern market is so big and con-
tains SO many more issues subject to
varying business conditions that it is
/, less apt to have general movement
either up or down Rather. it is in the
| habit of moving by groups. and when
| the question is asked: When is the
! turn coming? the answer is that for
| some classes of stocks it came two
! months ago, for others. a month later.
| for others still it probably has come
within the last week, and finally, for
! others it may be yet some distance off.
! The general rule is that after the worst
! is known about company. even if this
! involves the absorbing of huge inven-
| tory loss with an accompanying enor-
nous draft upon profit and loss surplus
] and entire passing of dividends-provid-
| cd, of course. there is no question OF re-
| ceivership-ths company's securities
have struck bottom.
Copyright 1921