Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-11-07
MARKET MAKES
! GAIN AGAINST
ALL OBSTACLES
FirmneSs Due to Optimism
Rather Than Sober
Judgment.
SOME PHASES HOSTILE
Special 70 Indiana Daily Times
and Philadelphia Public Ledger.
EV MONITOR

and Philadelphia Public Ledger.
by MONITOR.
NEW YORK, Nov. 7.-Financial senti-
ment is becoming rather deeply impressed
by the ability Of the market to make
Roadway in the face of numerous cross
currents and conflicting elements, some
OF which are decidedly hostile to improve
ment in security prices. In the opinion
Of some observers, the firmnesS that has
characterized the general list may be con-
strued as evidence Of naive optimism
rather than sober judgment.
This seems rather harsh comment in
view Of the fact that speculation, so far
as stocks are concerned, has been rela-
lively lethargic, while investment issues
have fairly doomed. The turnover in
bonds has been exceptionally large and
United States Government obligations as
well as the better class Of foreign bonds
have shown pronounced strength and ac-
tivity. This demand may be construed
more as 4 reflection of the improved
money situation than evidence of conf
dence in the business outlook. 1t has been
pointed out before IN this column that
the growing ease in the credit situation
has not developed so much along the
lines Of releasing funds to borrowers for
industrial purposes, as to institutional in
vestment-which might be Of a temporary
character-in gilt-edged issues. In other
words, banks seem more inclined to put
their funds temporarily in irreproachable
securities instead of lOaning them out
TO individuals for the prosecution of
the industrial and business ventures. In
this respect, it has been pointed out, the
current investment demand may be some
what deceptive. Abundant funds and re-
60 ~ sDI
may have led to the present investment
movement.
FAVORABLE
SENTIMENT.
Cheerful sentiment in the stock mar
ket is stimulated largely by evidences of
improvement in the domestic business
and Industrial situation and the belief
that the old distributing factors have
lost their influence to q great extent. In
creased activity in the textile industry,
the improvement in the statistical posi-
ton of copper, advances in the prices of
crude oil, gains IN the pig iron output,
and the sentimental effect Of the lower
Federel reserve re-discount rates are ac-
cepted as sufficient to overcome opposing
factors. Moreover, the position Of certain
special groups Of stocks has responded
favorable to the improvement in the gen.
eral trade situation. Among these are
what tire known as the merchandising
and chain store stocks. All are doing
a greatly increased business, and some,
judging from inside reports, have been
able to convert their merchandising eff
cheney into legitimate profits
Only the future can tell the extent to
which these favorable elements are Offset
by other factors. 1t would seem that the
decline in German marks might be ig
nored as a market influence. The inten-
sive activity OF the governmental print
ing presses cannot disguise the fact
that Germany is importing heavily of
raw materials, including cotton and cop
per, and that her population is leading
all Europe in the production of manu-,
featured goods.
SLUMP N FARsI PRICES
HITS PURCHASING POWER.
1t is not so simple to gloss over other
unfavOrable features. There has been a
discOncertins recrudescence Of labor
tr0ubles-the threat Of a widespread coal
strike, violence attending the walk-out
Of the milk drivers in New York, and a
general attitude OF resistance to wage
readjustment on the part Of Industrial
labor. This opposition comes in the face
Of an economic demand for a revision
that viii bring wages more in line with
the prices OF agricultural products
Here the slump in prices, particularly in
the cereals, has reached 4 point where the
reduced purchasing power OF agriculture
viii react disastrOusly upon industrial
labor.
Last but not least, the vacillation and
dema go@y Of Congress keep the business
world in a state Of continued anxiety
No one can foreteu the tariff outcome
taxation revision is up in the air, and
the bonus plan is revived under the spon-
sOrship of a few senatorial frebrands,
who seem to be unaware Of the load of
taxation which the country already is
carrying. 1t is a question whether the
nascent optimism of the financial com
munity viii be able to make progress in
the face OF such obstacles.-CO Copyright,
1921, by Public Ledger Company.