The Washington times., 1922-11-12

Developments I'm the realm OF
business and industry both at home
and abroad were distinctly favorable
and could in no way detract from
the higher basis OF valuation of
American stocks and bonds, as rep
markets during the past six or
eight months. In fact they sug-
gested, II anything, that good
many Of our securities, as com
pared with other similar periods in
the history of our country, were
not rated at considerably below
their real value.
Professionals active.
But technical conditions must be
taken into consideration, also, and
a stock on any particular day Is
worth Just what 1t will bring in the
competitive market, no more, no
less.
Professionals are quick to take
advantage of every opening for
fractional price changes in their
favor, and are more concerned with
today's profits than with fine ad.
tustment of intrinsic. values to mar.
ket quotations.
The so.called. mercantile stocks,
woolworth, May Department Stores,
kresge. National Biscuit, Endicott.
johnson; ETC., nratfe' the best market
record this week. All OF these
stocks, sold at new. high prices for
1929, in reflection of the extremely
favorable summaries Of business
conditions, particularly as affecting
retail trade. that are being published
by the trade agencies, banks and
especially the Federal Reserve Board.
Not only are the mercantile estab-
lishments breaking records Of earn.
ings, but they are moving into a
period Of prosperity, where they will
greatly benefit by the increased
buying power of the country at large.
The copper stocks were also taken
in hand this week, and after early
weakness, were sent to the best
prices on the movement, and in some
cases to record high prices for the
year. The merger fever has not yet
reached the copper companies,
though 1t Is generally admitted that
a combination of two or more OF the
leading producers Of the red metal
might be a good thing both for
them and for the country at large.
The trouble at present is that the
market price of copper is not far
enough removed from the cost of
production. but the heavy influx of
South American metal precludes the
taking of any definite steps in this
direction for the present at least.
There was also a good call for copper
bonds in the listed bond market and
new high prices for the movement
were established in this department.
Steels Firm.
L. s. Steel ran up to within fraC
tion of its recent high price just
prior to the publication of its month
ly statement of forward tonnage. the
best since the early part of 1921.
and the Independent steels also mad"
q good record in the middle of the
week, only to lose the greater part
of this advance in the late sessions.
Railroad stocks made no further re-
sponse to the highly encouraging re-
ports Of piled-up traffic that is await.
ing the attention of the carriers. Evi.
IDENTIFY the September earnings state
ments showing net return OF less
than per cent of valuation, made d
greater impression on the traders
than these optimistic surveys. The
same may be said for the bulk of In
dustrial shares, which, in the opinion
OF large contingent In the trading
district, have discounted the best
that the next six months can bring,
and therefore are in need OF new
inspiration before they can proce ed
any further upon their upward
course.
The week ends with most of the
commission houses advising caution
in commitments on either side of
the market, and with traders inclined
TO accept the short swings rather
than to hold out for the long pull.
Wavy lines on the price charts prob
ABLY will prevail for a considerable
period, with occasional rallies and
declines in individual stocks as well
as in the market as a whole. Traders
are again directing an anxious eye in
the general direction Of Washington
because Of the probable necessity to
revise taxation schedules in the next
Congress. They feel that IL Is not
unlikely that the new Congress will
fire a broadside against undistributed
surpluses Of the big corporation as
well as stock dividends that have not
been authorized before that time.
Bond Market.
With the exception Of the foreign
government bonds and a small mum.
Der of the speculative railroad issues.
the bond market staged a fair recov.
cry this week, and the increase in
new offerings probably was attribute.
BILE to that cause. American inves.
tors have been disposing Of their for.
eign bonds on a considerable scale
and price tendencies there have been
extremely irregular. Over the past
few months the French government
5 per cents have gone down about IL
points to a new low price, while prac.
tically all OF the continental Euro.
pean government securities have
been under LIQUIDATION, due to the
continued unsettlement in European
matters.
This weeks new offerings aggre.
gated about $4,000, 900, OF which the
public utility bonds, In the total of
$40, 900. 900. was again the largest
item: domestic industrials totaled
Sls, s,000. 900; State and municipal, 81.
o00, 900, and railroad, s4,000.000. The
new $4,000. 900 Chilean per cent
issue was quickly absorbed.
pvA : .>.ie~ trand ~ dor,estiC .ra Al.