The Washington herald., 1921-03-06
Inaugural Address Well
Received in Financial
Community.
CHANGE LOOKED FOR
Consensus of Opinion in Bust.
ness Circles Leads to Con-
fident Outlook.

administration enters office fully de-
termined to pursue a live and let
live policy and not hamper business
with a multiplicity of regulatory
business. His statements regarding
the foreign situation were sound
and also statements made relative
to taxation. When the official fam
lily begins to function. as 1t un-
questionably will at the outset.
there unQuestionably will be a
prominent reflection of the changed
Sconditions not only in the securi-
ties markets but in general business
as well. This was the consensus in
financial and commercial circles.
many of the leading interests un-
hesitatingly expressing confidence
in the outlook. The Presidents
message had a steadying influence
in the stock market after a nervous
opening on Friday following de-
cidedly unfavorable news after the
close of business on the previous
day. A large Wall street failure
and a sixty-day postponement of
dividend action by the Atlantic, Gulf
and West Indies steamship lines
both of which announcements were
made after 3 p. m. on Thursday did
not have a tendency to create a
very confident feeling in the minds
of either the speculative of invest
ment public at the opening of busi-
ness Friday morning.
May he Delayed.
Those who have studied the mar
ket situation carefully expressed the
opinion that it might be several
days before any really aggressive
upward movement takes place in the
stock market. but eventually il was
thought prices would do much bet
..fer. 1t is a time for the exercise
on caution. however. because of the
many uncertainties in general con-
ditions. but the opinion most gen.
!, eral was that from now on on all
substantial dips the character of
buying will be better than that of
the selling. When business again
resumes an improving tendency as IL
is bound to in due season, the se-
curities market without doubt will
prominently reflect the changed sit
uation- This should not be inter-
preted as indicating that there will
be quick upward swing in either
the stock or bond markets. but a
gradual Improvement which even
tually will assume wide proportion.
Motor stocks.
There was rather heavy selling of
some of the motor stocks on Friday.
this being particularly true with re-
spect 10 General Motors common
which sold down to the lowest quo
tstion that has been recorded since
the low water mark of last Decem-
ber.
1t was learned that one of the
large holders of this stock who is
recognized as a Durant man and who
has expressed bullish convictions
regarding the stock of the Durant
Motors Corporation, sold rather
heavily throughout the entire ses-
sion on Friday. but the stock was
well taken. Studebaker has held
remarkably well in the face of the
depression of the past ten days or
two weeks during which time Chand-
Ter Motor sustained a rather sharp
break touching a new low record
on the present downward movement,
: but later recovered a part of its loss.
opinion in banking circles is that
the Chandler Motor Company will
reduce Its divident to s6 per share
Per annum at the. meeting to be held
on Thursday or next week and there
are some well-informed interests
who profess to believe that the
Studebaker Corporation will make a
substantial reduction in It's dividend
rate at a meeting to be held in April.
The motor situation at the moment
does not look rosy, but evidently
as business conditions become
righted there will no doubt be a
gradual recovery in the industry.
Great Northern Affects steeI..
Declaration OF the SO a share divi-
dend by the Great Northern Iron
Ore properties had stimulating
influence in the stock of that or
ganization which moved up a few
points on a comparatively small
volume of transactions, closing at
the high of the present upward
movement on Friday.
This action clearly indicated that
satisfactory conditions obtained in
connection with the affairs of that
corporation, notwithstanding the
unsatisfactory situation now OBJ
tanning in the iron and steel in
dustry. The steel stocks as a whole
have not been as popular recently
as may have been desired and un-
less there Is very decided change
in general business conditions the
immediate outlook in the trade is
not one of very great promise.
While the independents have az
fected substantial reductions in
prices the United States Steel Cor
poration thus far has steadfastly
refused to reduce and as a result
has been subjected to rather harsh
criticism generally. 1t Is argued
that eventually the Steel Corpora
tion will be compelled to fall in
line with the independents. because
there appears to be some basis fof
the assertion that in many lines
activity is being retarded because
OF the attitude of the management
of the Steel Corporation officials in
this regard. So long as the cor
poration holds wartime prices. it Is
argued. there is basis for the as
sumption that buying will be con-
siderably restricted which in turn
will have retardins influence over
commercial activities.
OILS,
There appeared to be a quite gem
eral belief that a considerable
amount OF money Will be made in
the oil stocks during the coming
summer. although the immediate
course Of prices may be crfatic.
Prices Of crVde oil have been ma
tari.lly red6ced and It y wsll