The New York herald., 1922-04-10
FINANCIAL NEWS
AND COMMENT
Rise in Security Markets Re-
fleets Steady Increase
in Business.
NEW BUYERS IN MARKET
Indications of Recovery in
Europe Give Promise of
World Betterment.
NEW BUYERS IN MARKET

1t was possible last week to examine
in more detail than before some of the
underlying influences in business which
have been shaping the exceedingly &C
must elapse before industrial results OF
the first quarter can be compared in
dollars and cents with the same period
of 1921, enough information has come
to public attention to show that the
comparison will be encouraging. Prob
ably many steel companies--perhaps
most OF them-will be found 10 have
made no profit. IT is likely that in dis
tributing lines numerous business or
ganizations were still engaged during
the three months in working off and
writing down old inventories from last
year and the year before that. But the
general description OF Industrial results
coming from major centers Is now suf-
ruary was better month than January
and that, March witnessed a genuine
awakening in many departments of bust
ness.
Taking iron and steel. competent
judges report that both selling and pro-
duction went ahead with considerable
force in March. Pig iron was made in
that month at a rate which, IL continued
for year. would turn out so per cent
more than was run from the furnaces in
all of 1921. A representative automo-
bile company produced 143 per cent
more motor cars In the initial quarter
Of this year than were manufactured in
the first three months of last year. and
makers business expanded SO per cent
The railroads, sensing growth OF traf-
| fic, are hurrying in their orders for new
rolling stock and are increasing their
contracts for rails and structural mate
rials. The farmer is buying fertilizers
and utensils much more literally than
year ago because he is experiencing
fairly good prices for his grain and ami
mails and sees much brighter horizon.
Rise Has strong Basis.
The intensely active and strong stock
degree, than before the impression OF
actual facts OF industry and transporta-
tion upon the speculating public. The
succession of million share days--million
and half shares more accurately
certainly was supported partly by buy
ing orders from without the immediate
purlieus OF Wall Street. The spectacle
OF rising prices undoubtedly hastened
public buying. but it was altogether
probable that much of this buying was
based less upon the conviction that
profits could be made because prices were
advancing than because OF plain signs
that the business prospect was measura-
bly, improved.
The stock market is barometer Of
business which is studied by men in
nearly all pursuits. The composite price
OF average groups OF railroad and in
dustrial shares has advanced this year
about thirteen points, which. allowing
both for the spectacular industrials and
the slower moving rails. is considerable
Of an upturn in little more than three
months. Much OF this rise occurred while
business was displaying only modest
signs OF turning back to normal
The question receiving attention now
is whether the recent rate OF progress
can be maintained much longer without
running far ahead of the expansion Of
industry. or without being tripped by
some development unexpected or under
estimated in the exuberance Of specula-
tive endeavor. 1t Is difficult to find a
direct precedent to refer to. In 1904. a
year following a period Of panicky condi-
tions. the revulsion of sentiment from
disturbing matters was so pronounced
that long succession OF million share
days in stocks occurred before there was
sharp setback. And at that time there
were no days In which, as in last week.
more than 40 separate stocks were
dealt in on the New York Stock Ex-
change.
New Measure Is Needed.
The fact that buying Of active stocks