Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-02-27
INTEREST KEEN
IN AFFAIRS OF
STOCK MARKET
Securities Gain Strength as
Result of Favorable
Influences.
Special to Indiana Daily Times
and Philadelphia Public Ledger.
Bv MONITOR.

By MONITOR.
NEW YORK, Feb. 27-Accelerated spec
ulative activity and increased public in
terest have been the distinguishing fea-
lures of the stock market for the last
week. Trading still bears much of the
professional stamp, but this is no more
than natural. No tull market ever passed
through the early stages without sur
fering the accusation that its accompany
Ing phenomena were taWdry limitations
Of the real thing, as badly artificial as
the thunder barrel and the flares op-
grated from the wings to produce the
terrifying storms in the old melodrama.
Nevertheless, bull markets have habit
Of getting under way. All the tlme-worn
market mechanism Of the past may be In
voked to get them started, and then we
begin to hear something about the ster-
ling fundamentals that were overlooked.
As a matter Of fact, securities are going
I'D as result of q strong combination
of favorable influences, some of a posi-
tive and others of a negative character.
One is as helpful as the other, If they
can be made to synchronize. The fact
that public speculative holdings Of Sc
curities are not large may not be OF it
self an argument for higher prices, but
when taken in conjunction with an in
creasing supply of idle money and rest
less temperament it constitutes a most
vital element in the situation.
The investment buying movement OF
last autumn merely has overlooked into
the seasoned dividend payers, spread to
stocks of clean repute and hopeful pros
poets, and also has encouraged the ex-
ploitation of issues less desirable in
character These latter movements are
made possible largely by favoring tech
meal circumstances, and they serve only
as sensations of a day.
1t therefore is necessary to differenti-
ate between an advance in United States
Steel and Gulf States Steel, Texas Com
pany and Pierce Oil. Those who oper-
ate without giving value first consider
alton may have occasion for ultimate re-
greet, although they may have to forego
an occasional thrill.
The important developments Of late
have consisted of the rise in farm prod
ucts, the apparently successful opposi-
ton to the soldiers bonus" plan, the
rise in sterling and its ramifying sig
nifcance and the housekeeping in inan-
cial circles that has been responsible fol
eliminating the parasitic establishments
that have constituted a nuisance and a
DEMAND SEEN FOR
FACTORY OUTPUT.
1t will be strange indeed if the ad-
vance in wheat, corn and livestock prices
do not find their reflex in better general
trade reports. Collections already are
improving in the agricultural districts.
Buying by retailers is more confident.
The position of the regional banks oil
the Federal reserve system is impress
sively stronger. With farm products
higher and with the tendency toward
lower production and selling costs in
the industrial field we shall hear gradu-
ally less about the disturbed equilibrium
between our great producing groups. 1t
will take less corn to buy farm imple-
ments, and fewer hides will be required
70 purchase pair Of shoes. The demand
for the output of our factories therefore
will increase.
The rise in the foreign exchanges must
be interpreted from two angles. 1t means
at the moment an increase in the buying
power of certain European countries. 1t
is nevertheless reflection of economic
stagnation. Sterling would not be at
$40 if the industrial centers of Lam
cashire, Nottingham and Sheffield were
humming with activity. Their raw ma
terial purchases would make offerings of
bills too heavy. In some respects the
rise in exchanges is q disadvantage. What
is gained in buying power may be lost in
selling power. We have an illustration
Of this in the difficulty Manchester ex-
periences in selling cotton goods, al
though buyers have to wait in line out
side the mills of Germany. Moreover,
Germany is shrewdly minimizing the I'M
favorable element represented by the low
mark by trying barter here and there,
such, for example, as trading steel rails
for Argentine wool. She gets better
value than if she sold the rails elsewhere
and bought wool with the cheap mark
Satisfaction over the strong opposition
that has developed to the soldier bonus
bill has been one of the stimulating ele-
ments i nthe market in the last week. The
passing of number Of irresponsible
brokerage concerns also should do much
toward clearing the financial circles. The
Investment business of the country is too
vital to the public to be in incompetent
hands.
At present the chief cloud on the hori-
ION consists of the threat of a coal strike
but at present it appears to be no more
than a threat. Undoubtedly the miners
have been receiving unsatisfactory aggre-
gate wage payments, but it would appear
that the remedy lies more along the lines
Of better organizations of the industry
in respect to distribution than in the form
of wage increases which will add ma
terially to production costs in all forms
of nterprise.-COpyright 1922, by Public
Ledger Company.