Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-09-24
BUYING BEGINS
IN INDUSTRIAL
SHARES AGAIN
Hopeful Outlook Seen in Re-
vival of Automobile and
Steel Lines.
BANKS MAKING LOANS
Special to Indiana Daily Times
and Philadelphia Public Ledger.
RY C. b EVANS

and Philadelphia Public Ledger.
BY C.. B. EVANS.
CHICAGO, Sept. 24-AIore study is now
being given in this city to investment
and speculative possibilities in stocks
than for years past. and it means a for
ward movement in purchases some time
, indeed a beginning already has been
made. 1t is an extremely hopeful situa-
ton. Two years ago, and still more dur
ing the booming war period, the average
trader saw. a price and rose to it but
presently found that he had a hook in his
jaw. The mental attitude was that the
buyer could do no wrong to his exchequer.
The punishment that has been melted out
TO this class is something unpleasant %
contemplate.
During the past two years the more
sober men have been lying low, waiting
for the time when conditions would sug-
gest purchases. and so thorough has lioui-
dalton become that in many instances Gus
toners have been advised to buy into a
stock which was paying no dividends and
the outlook for which the average man
would consider bad.
( Now We have come to a time when
something like organized buying is con-
templated to be under the direction of
those experts who not many months ago
were constantly advising their friends to
keep out of the market Tt is not sur
prlsing that these men are facing forward
when they hear such statements from
good sources as that Of an authority on
United States Steel who declares that its
property could not now be replaced at
figures which would mean less than 500
per share for the common stock.
This looks a bit extravagant, but its
meaning is in the fact that the country
has future and in its present liquidation
is getting ready for the best there is in
that future
There are a hundred stocks including
the preferred list. whose natural mar
ket is Chicago, that are subject 10 these
Investigations and which if the present
thought is correct. will in due time pay
purchasers at present prices large profits
with good interest meanwhile. But this
will take months. in some instances
: years. The outlook mainly is on the
industrials There are instances here
Of insiders selling the stocks of these
concerns because they feel the chill Of
winter coming on and they know that
their works viii not be operated in full
but they viii have the depressing spec
tacle of large numbers of hungry men
waiting for job. The studious outsider
f
There are some evidences that a good
| turn Will come sooner than even the r
| hopeful expect. A highly accomplished
business man in this city who has Just
visited Detroit notes a remarkable up
lift in The automobile industry and in
the spirits of the people. Others are
remarking moderate change for the
good in the Calumet district in and near
Chicago, where the great iron and steel
works are located.
Even the attitude of the banks is chang
ing. They are now inviting. rather fban
discouraging, loans on stock collaterS,
Partly this is due to the release of funds
heretofore loaned in other directions
There is plenty of money" say the
brokers' and it appears only question
Of time when the Chicago bankers will
yield to the new inevitable course OF
events as typifed by the reductions In
discount rates in the Federal reserve
/ banks of New York and Boston. 1t ia
at the eastern centers always where a
movement up or down la the money mar
kei first makes its appearance, and here
there are many 'leftovers" in the loan
account.
The borrowings Of member banks at
the Chicago Federal Reserve Bank have
run low through showing some increase
this week owing to crop requirements.
True it is reported that two of the big
banks have settled their accounts there
by borrowing from their associate trust
companies, but even so. an easier con-
dition Of the market is demonstrated
But always there are shadows where
there is sunlight. We have four or five
years of difficult tmeS ahead of US" says
one well known banker. When we re-
member Europe we cannot doubt this
statement, but moro than ever it is dem
onstrsted this country can run while
others have TO walk and do a good deal
of limping at that
We ourselves have a number of OBJ
stacles 70 get out of the road. but far
reaching vision was given us not merely
to see the obstacles but to feast our
souls on the cool things beyond.-Copy-
right, 1921, by Public Ledger Company.