Mohave County miner and our mineral wealth., 1922-06-02
Inknc0N Famous
 IU on Business Conditions

l Wellesley Hills, May 27th, 1922. Il
 view of the peculiar. way that tn
 stock market has been acting the pas
 few days and the various rumors tha
 are about regarding the great stee mergers, We have sought the> opinio,
 of Roger w. Babson concerning tn,
 same. .- H.:A
 "So far as the long swing goes
 says the statistician, everything
 looks evil, both for the bond marke,
 and for the stock market. We are en
 tering into period of low money
 rates which may extend over some
 years. If so, the bond market will
 continue to climb upward for a simi.
 lar length of time. This does not
 mean that bonds will advance as much
 next year as they have advanced this
 year, nor as much in 1924 as they will
 in 1923. Moreover, reactions will oc-
 cur now and then. The general.ten-
 dency, however, should be for strong
 bond market for several years.N
 "The stock market has not yet
 reached its zenith Those who have
 bought securities and have them in
 their boxes should, not worry about
 present market movements, orr con- flicting runors. We have only start ed on a great broad movement in the
 security markets which will take both
 bonds and stocks to much higher prices. The United States of America
 has always been. a great country; but today it is the center of the worlds production, distribution, and financ- ing. If it is two years before We are back again in another period of pros perity, it will be two years before the stock market turns on it's great trip downward. ' .- ... ......
 "The stock market, however, is like the ocean. In addition to the great tidal movements, there are squalls, storms, and periods of calmness and of roughness. The stock broker watches certain barometer as does the mariner at sea. This barometer strongly suggests today that there may soon be storm in the stock mar ket. It, looks rather cloudy and at points there is pressure which is not The optimistic tone which has been characteristic of the market. for many months has temporarily gone. The rumor-mongers and tip sters are again doing business. In siders who have been accomplishing for some months are known to have distributed their holdings. They are now waiting for shake-down and an- other chance to get aboard before the next upward movement. |
 Regarding the reported steel mer- yer," continued MT. Babson, q will say that there has been much talk about this, so much so that it looks IS if certain parties were using it for window dressing. The capitalization # the combined Bethlehem and Lack wanna companies is about $200,000,- 100. The combined capitalization of with Republic, Youngstown,
 nd other companies proposed to nerge is about $350,000,O 0,OOO. Thus if he entire consolidation goes thru it yould mean capitalization of about $50, ,00O,000z. It is preposterous to laim that this is an equal revival of he United Steel Corporation which as today a clear investment of about ne billion and, a half dollars.
 "When the earnings are considered
 similar condition will be found. For !, lstance, for an average period of . ears the Bethlehem and Lackawanna now gross earnings of about $350,-
 )0,000 while-the Independents men oned above show gross earnings of :. bout $450,000,O00. Thus the total ! ross earnings of the combined com r anies would be not exceeding $S00,- I )0,000, including Bethlehem, Lacla- ii anna, Midvale, and the rest. For the f lme period of time the United s tates Steel Corporation did gross S lsiness of $1,700,0 100000. Et Considering the poor condition of 8 le steel business at the present time, t rather looks as if concerted effort c as being made by certain parties to e ,t out of the stock market or at S ast get out of steel and into copper u
 something else.. Some one asked e e other day for my opinion regard O g a certain New England railroad n ock and my reply was, "Show me the R ock books and l will give you an an- n 'er. If the widows and children still u