Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-04-10
BULL MARKET
GETTING UNDER
WAY, IT SEEMS
Rising Prices Plus Enthusiasm
Make for New Situa-
ton.
HISTORY is INTERESTING
BY MONITOR.
eciaI 10 Indiana Daily Times
4 Dt,ff~rF-rr.r,Fg DrrErfc Tr1rnr

spectral 10 AAt.4alAL Afa4-e -Aai--9
and Philadelphia Public Ledger.
NEW YORK. April 1O.-Developments
this week evidently have convinced the
most skeptical tat a bull market is get
ting into swIrg. Heretofore we have had
rising market, one. in fact, since last
September. There is a difference. how
ever between q market that merely adj
vance as a result Of gradual hardening OF
prices and a bull market with its &C
compartments Of bUoyancy and intensive
activity. : bull market is a rising mar
kct plus enthusiasm, and this latter quail
ity appears 70 Ee in process OF generation
20 an unusual degree.
In view Of the fact that the week fur
nfShed three days with transactions run
ming over u million and half shares, II
is interesting from the standpoint of
financial history 10 look back over the
last few months and see how irresistibly
the clements of widespread speculation
have been gathering. At nrst came the
investment demand for purely investment
issues. largely institutional in origin.
This began TO overflow into preferred
stocks and standard issues. as individual
investors scented the trend Of coming
events.
MONEY SITUATION
SALE INCENTIVE.
Thus far the favorable money situa-
ton and the technical position Of the
market have been practically the sole
incentives. These did not appeal strongly
TO the rank and file Of the outside op-
orators The sustained advance, how
ever, is beginning 10 prove convincing.
In addition to this the irregular but
constant gains in the general business
situation are adding their quota 70 the
market stimuli. The banking situation
has improved. to a surprising extent, in
the agricultural districts, as reflected
in the rising ratio Of the banks At Dali
las. Richmond, Atlanta, Minneapolis AMI
Kansas City. Operations at steel plants
show constant weekly gains. a great
building program is under way.
This week the orders for railroad
equipment have assumed large proper
tions The railroads themselves are
working into a better position. Their
economies have already exercised an ef-
feet on net returns. with a moderate
volume of traffic. With ear loadinCs in
creasing. there should be q marked i'm
provement in gross. which will give the
carriers an opportunity 10 profit by the
economies instituted in the last two
years.
SCATTERED GAINS
mali, INDUSTRIES.
Scattered gains are reported through
cut al branches Of industry. Automobile
manufacturers are busy. but the truck
department is even more so. Some Of
the plants manufacturing trucks which
were operating on a 20 per cent basis, six
months ago. are now working overtime.
Copper mining has been resumed, and
the statistical position Of the red metal is
sufficiently strong TO keep prices firm. in
the face of an impending increase in out
put. All this means increased employ
ment ard a gain in the general buying
power.
The trade situation is healthy aside
from the prevalence of high prices in
many lines. Retailers are notably under
stocked as a result Of their hand-to
mouth policy. Their purchases for re-
Punishment will serve still further TO
quicken the pulse Of business activity.
The effect Of this improvement is likely
10 become 4 cumulative market influence.
Some Of the conservatives feel that the
utmost caution should be observed,
owing TO the fact that profits for 4 con-
siderable period must be small. This
probably Is true, bur it would be well
rot TO overlook the factor of statistical
Improvement which will be reflected in
ralauce sheets in forthcoming reports.
The assets position will show up most
tavorably, because the annual reports Of
this year have been characterized by a
writing down Of inventories that left
-.othing to the imagination and losses
ave been mercilessly charged off. With
the rise in prices, although only moder-
ate. in the coming year many 4 deficit
viii be converted into a surplus.
This is a state of affairs which demon
strate5 the solid frankness and courage
that characterizes the well managed
American industrial concerns. So long
rs our great enterprises are in such
competent hands there can be no basis
for abiding essimism.-Copyright 1922,
by Public Ledger Company.