Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1922-12-11
Political Prospect
Affects Market

The weekly financial review of the
Henry Clews Company of New York
is as follows.
The polictical situation and the pros
pect of legislation for the winter con-
tlnues to be fundamental stock mar
ket and investment factor. This has
been the case ever since the election
OF last month. Fears however, has
tily expressed concerning the legis-
lative outlook and based upon the ac-
tivitles of the radical "bloc" are be-
ginning to have less effect, so far at
least as the immediate present is con-
cerned. 1t remains true, neverthe-
less, that the attitude adopted by ply
Geological influence on the market,
and that should we, much against our
will, be obliged to witness special
session, to convene next spring, there
might be ground for anxiety in view
of the lack of organization existing
in Congress today.
Meanwhile, the business outlook con-
tinues reassuring. Surveys lately
made by various unprecedented authori-
ties point to the probability of a main
tenance of activity. More than half
of those consulted in a recent ques-
tionnaire put out by bureau of in
vestigation foresaw large holiday
trade and who simply look forward
to the extension of present conditions.
In some lines of industry decided
symp ms of further increase are to
be noted. The copper mining industry
which has so long been depressed is
now decidedly hopeful, as testified by
the resumption of dividends by the
Kennecott Company and the expecta-
ton in dividend declarations in one or
more of the others. On the whole,
the strength shown by the copper
shares has, therefore, been warranted.
The strength of the automobile shares,
a scompared with others, is explained
by the facts that are now coming for
ward with respect to recent produc-
ton and current orders. Large de-
mand for railway equipment has SUI
ficed to make the equipment stocks re-
sist with more or less success the de-
pressing influences at work in the
market. Class Roads report October
earnings over $S5,000,000, equal to
| t.OO pei CCllI Ol ldHIdllfS
The rush of stock dividends which
set in a few weeks ago has hardly
been abated and the total of them
now amounts to something like ST.
300,O00,000. Others are expected, and
the number declared during the past
week has been fully up to average.
Belief that such dividends are not full
ly understood by the public and that
the declaration of so many in success
sion has had bad effect is beginning
to be recognized, as they are of rela-
lively little value to the recipient
owing to the fact that so little effect
has been produced by the dividends
in question upon current prices Of Sc
curities.
President Harding has given encour-
agement to those who believe that
nothing further need be done as re-
CARDS taxation at the present time
by reporting to Congress that he has
succeeded in cutting the prospective
deficit by about $500, 100000 and that
only S273,000 900 remains as a short
age for this year, while next year,
with no increase in taxation, he fore
casts surplus of S1S0,000,000. Sec
rotary Melons message to Congress,
with it's reiteration of former sugges-
tons in favor Of a more moderate inn
position of surtaxes, has, of course,
been well received by the business
community; indeed his views so clear
" expressed found ready response IN
the bond and stock lists.
More and more evidence is accumu-
lating to show the increasingly salts
factory condition of the banks. The
Secretary of the Treasury refers to it
and the experience of the past au-
tumn season, during which it has not
been necessary to rediscount between
Federal Reserve banks or to call very
heavily upon the city correspondents,
confirm the beliefs already entertain
ed by close observers. Funds are now
moving steadily back to the cities, and
apparently will continue to do so dur
ing the rest Of the year. If reas-
sonable adjustment of the PREPARATIONS
problem could be worked out, the eff
feet would be to restore our foreign
business to a sound basis without much
delay, as Europeans are eager custo-
mers for American goods whenever
satisfactory means of payment can
be arranged.
Trading operations have been quiet
during the past week, but the restora-
ton of equilibrium in prices has con-
tinued and there is greater degree
of stability than for some time past.
1t : still true that the public is not
very closely interested in tn market,
and .nis is perhaps the east satisfac-
tory phase of the situation; perhaps
after che radical bills expected have
been ~oduced in Congress and their
death knell is sounded, buying cour-
age will revive. Final adjustment,
however, is some distance off, and no
doubt the market will experience sew
eral up and down turns before then.
1t cannot be doubted, however, that
the recent housekeeping has given it
decidedly better footing and that at
tempts to dislodge stocks now meet
with little or no success. This is large
" due to the fact that most of the
weak spots have been eliminated and
present shareholders therefore are dis