Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-12-10
CLOSING MARKET
HAD STRONG TONE
Weeks Uncertain Drift Sug-
gests Temporary Backset
Impending

New York, Dec. 10.-Today's stock
market developed pronounced strength
after, an irregular opening, and with 1t
c4me an appreciable increase in the
volume Of dealings. The coppers for
q Itime held the foremost attention, but
the Improving tendency was of pro-
kfessive type, gradually extending out to
the other industrials. The oils, inde-
pendent steel shares and some Of the
shipments were given a large share of
attention, but the character OF the
movement suggested hasty covering Of
the short interest all through the indus
trial list. The announcement of the
proposed further reduction in wages
failed to help the rails, which, as
group, were still sluggish. Although the
higher range of quotations invited nuito
good deal Of profit taking, the market
retained strong tone up to the closing.
The uncertain drift of the week
market was not all surprising in light
OF the substantial recoveries scored from
the low level of the year, and more es-
pecially because the recent forward
swing in the security markets had for
its basis the easier money conditions
rather than rejecting any material
change in business conditions. NO real
student of the situation Will deny the
constructive character of recent deVel-
opments both as regarding the foreign
as well as domestic conditions. These
are facts that cannot b. overlooked or
underestimated, as there is not the
slightest doubt but that foundations arc
being carefully and scientifically laid
for a resumption of the country indus.
trial prosperity on a SaiIer, sounder and
mere substantial basis than we ever had
before. While this is certain to be pro-
ductiye Of u growing feeling of opti-
mism, yet on the other hand, as the
weeks market operations disclosed, there
Is a general recognition on the part of
the more conservative observers of the
possibility of speculative enthusiasm
outrunning the progress of the recon-
struction program.
In other words, q close and careful
consideration of the recent movement
would suggest the market was approach
ing or nearly approaching what the
stieet is pleased to call an ''OverbOught'
condition. 1t is reasonably certain,
based upon past experience, that in the
average advance of ~ pOintSs in the
price level a certain amount of a weak
following has been attracted which
technically has become weakening
rather than Il strengthening element of
the constructive speculative program.
This view is strengthened in observable
falling stimulus of the selected pool
demonstrations and the lacking enthusi-
asm over the revamped old combination
yarns centered in such widely separated
Industries as coal mining, independent
steel companies and moving pictures.
1t would not be surprising, measured
from technical standpoint alone, that
q fair sized setback is in order. In
other words, quite a number Of recOg-
nized competent observers firmly believe
chat what has long been known as
healthy reaction is long overdue and IS
now impending. This does not imply
any possibility of the control of the
market situation reverting to bear op-
orators, who for so many months dOmi-
mated the trend of security values, but
1t does mean the elimination of the
weaker superstruCture preparatory to a
general evening up of accounts over the
years END.