Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-03-14

ment is much smaller. and there has
been a moderate slump in general mer-
chnndisc. the buying demand generally
in the South being small.
Newburaer. Henderson 4 Loeb
While market Developments continue nd
mittedly bad and discouragng. it is
the consensus Of opinion Of leading On
perts there is great danger Of investors
and others interested IN security values
being misled by pronounced pessimisn'
xhich seemingly pervades all quarters
OF the financial community. As mat.
ter of fact there is nothing new in the
general situation to the contrary, the
conditions now cropping out in con q.
nection with the industrial, railroad and
other corporatio have been pretty
clearly outlined ever since the first evi-
dencc of the business depression be L.
came manifest in the closing months OF
last year. The important fuct not TO
be overlooked is despite the unsettltns
surrounding influences. and the un-
checked depreciation of security alues'
there has been actually little real Ii
quidation
While prices have fallen back close
10 the low levels Of last December. there
has been no evidence of the hysterln
which accompanied the downward swing
in that period. TO the contrary, al!
reliable signs point to material e1
tension of the short interest az result
of the complete and unoppoSed domina .
ton Of the professional element. which
sooner or later must be covered. Bis
strides are being made toward res
toratiou ~ normal economic conditions
The curative remedies applied have no'
been very rAlstable doses, but far
reaching results are being obtained. Th'
new administration is already NJ worl
to restore the confidence Of the peopiI'
Of the country. From now on we shoult
look for constructive and not destruc'
tive policies.
Hughes 4 Dier Internally. tn
greatest overshndowing condition max
ing for peasimietic outlook Is IN
railroad situation. which. ms all intel
ligent observers must admit, IL at IN
present moment in distressing an
unfavorable state. Saddled with waE
scales. burdensome and almost ltnbear
able in the manner OF commutation an
The wage 20 he paid, railroad manage
ments are struggling with the problei
in hand which Mt the moment seems i'm
possible Of solution.
The situation surrounding the rail
roads, while Derplexing and embar
ra ssing. is now so serious that II seem
highly probnbl" that concerted actio
will be taken tending TO remove oh
structions and place the roads on
basis where operating expenses can
pnid and an honest return made on m
invested capital which has provided ou
transportation lines.
Jones & Baker-Witn the March
taxes soon out of the way, securiti'
are expected to give u better account
themselves. particularly If reports
: business improvement continue TO at
, cumulate. II is being recalled that att
; March 10 last year the market enjoyt
{ substantial rally
Hecker & Co. disappointment
the action of the market has caus'
d considerable selling by those wi
3 thought the market would have an az
d vance after the inauguration. Consit
= oring the large amount Of railroi
stocks sold during the week. the declin
we're not as big az might have ~be'
expected. Rest opinion is the selling
I being very much overdone in this fuI
damental part Of the market. II q
general situation was mora favoral
q the cutting down of wages would
;, viewed as bullish instead of bearish.
s The Street can only think Of possib
D strikes. and lowering of dividends.
TO the former there are already t
many men out Of work to encoura
., strikes. AS to the latter. such rumO
). are only propaga nda to help the decli
u along. and are naturally doing a
d Of harm by inducing unnecessary sn
n THE TRADER.