Omaha daily bee., 1922-05-22
financial
Che Men 1srk QmeA.
By ALEXANDER DANA MOVES.
o~sAs nss l.sassA wire.

o0AhA nee lenees wire.
New York. May 2l.-Lasr weeks
resumption OF active trading and ris-
ing prices on the stock exchange was
evidently caused by financial, not
political Developments. Insofar As !,
responded TO actual news. It's atien.
ton was hsed on occurrences at
home. not abroad. The new advance
~ stocks Was accurately timed so as
10 prove the financial communities
lack OF interest in the late expert.
menls at Genoa. Probably il would
be going too far 10 say that the mar
kets forward movement expressed
relief AZ the adjournment OF the con.
terence with rs Russian negotiations
and admitted failure. but at least
there Is no sign whatever OF regret.
There are three ways OF explaining
the movement which is now in prog
ress on The stock exchange and, in a
more or less similar way, in other
speculative markets, One is by the
business worlds growing conviction
that trade and industry are passing
INTO period oi distinct revival. based
on returning confidence in stability
oil prices and Oh evidence OF an alb.
normally low rate OF production with
consequent small stocks OF merchan-
disc ~ dealers hands. The second
explanation is the existence OF
money marke, in which abundant
credit can be commanded at the low
est rates since 1917. and can be thus
procured not only for purposes OF
general trade but Tor stock exchange
speculation. The third is the anne.
iite Tor rumor aud conjecture which
invariably develops in a period OF
rising prices.
Upward Turn In Values.
Ihr recovery In prices. taken Inv a.
sson.ln,.t n"a ~ ne least pushed people
.pts, II embodiss that perfectly fsmilisr
pnshomeoon, the upward turn ~ yaims.
y pum iony occurs m.,, with some suddennes. after
=, t.nk P.finu OF reaction. liquidation and
g.,strust had carried them down too Ssr
ihst inc stock exchange and the corn.
nrdssy mda.y markets should be bidding mp
Msit street was talking OF a ruined Euron.
anu insoivent railway system and sn
asinefiean Industrial outlook which was
- = VI uHcEnpiotment 4 hUmA
merely repeats the experiences OF slmiIar
epochs In the past. ''"'
lh" appetite for mystery which has
nsTn displayed In this months actIon nj
the stock market in the matter on ,ha
dent. i"'"'har mel
a year or two eEo purchase OF one In
uustrial company by another was very
apt I" be- described as a 'salyarc NJ
uerelect' In the present altered mood
y Is commonly described as a transac.
a,on IN which the mere exchange OF one
eompanys stock for the stock OF am
ptnsr IS 70 give both stocks a vastly
Amalgamati0n Blocked.
Managers OF half dozen steel com.
phhies confer and dispute continuous
ior month, every successive proposaI
TO- amalgamation being blockaded by the
Jealous watchfulncss OF the neyotiators
70 prevent any single company in the
merger from being ovcr-valucd. But Wall
street knowing this fact. bids up prices
tor the stocks first on the supposition
mat an exorbitant valuation will be placed
or some Of them. second on the theory
tnat swapping of stock by the Companies
concerned Will make the value OF every
before. " was
It is hardly necessary to say to peonle
o. any financial experience that such per-
lormances invariably overshoot the mark.
Iney nave always done so. even In years
When nothing was In sight to modify or
impede the course OF financial recovery
ana no serious person will contend that
precisely such condition exists today.