Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-02-13
WEEKS TRADE
ON EXCHANGE
FAIRLY BRISK
Strength of Market Position
Seen in Ability to Resist
Shock.
FLURRIES Do NOT WORRY
IS ecial to Indiana Daily Times
I'D Philadelphia Public Ledger.
By MONITOR.

AAecial to Indiana Daily Times
NNd Philadelphia Public Ledger.
BY MONITOR.
NEW YORK, Feb. 13.-Aside from
such recognition Of a precautionary char
acter as the rank and file have accorded
the apparent certainty that the soldiers
bonus" will would be passed carrying
highly Objectionable provision for
transfer taxes on stocks and bonds, the
market during the week has displayed
rather impressive strength with q fair
amount of activity. Undoubtedly the
professional hand has played it's part in
the exhibition for pools have forced their
favorites to the front and in many cases
with notable success. In these operations
the market strategtsts have been aided
by a strong technical position, for the
books Of the average commission house
have shown no large speculative long
holdings by the public and on each
downward reaction the selling of stocks
by timid holders soon dried up.
The strength Of the market position
has been evidenced by the apparent proof
to shock displaced on several recent oc-
casions. A brief furry of selling is all
that has taken place upon the announce
ment Of disquieting developments. In
other words, most of the unfavOrable fea
lures have been expected and discounted
No one has looked for anything more
than a succession Of relatively unfavor-
able statements from industrial corpora
lions on the business Of 1921. II earn
ings have been fairly good the result
has been an agreeable surprise.
DIsQUIETING FEATURES
A-UELD CONSTRUCTION.
Moreover, some of the disquieting fea-
lures of the industrial situation at pres
ent are regarded as ultimately construc-
tive, such, for example, as wage reduc-
tlons and the consequent lowering of
production costs. In some cases these
may be accompanied by labor disturb
ances, but 1t is not believed that any
of these traditional protests can inter
fere materially with the process of re
adjustment under way
The money situation is getting better
The weekly statement of the Federal re
serve system showed only slight change
in ratio, but the encouraging items are
represented by the marked Improvement
in the position of the Southern and
Western banks, which reflect the distinct
gain in the status of the agricultural
districts. Most satisfaction has been
aroused over the rise in agricultural
product that has gained Roadway dur
ing the week. With industrial produc-
ton costs coming down and agricultural
prices rising, there has been a decided
lesening Of the disparity between these
two producing groups ~
Once more speculative sentiment is
turning to the rails. Reports thus far
received from the Glass 1 carriers for
1921 do not make a brilliant showing,
indicating they do a net of about q
per cent. At the same time there is n
=,
the friendly concern manifested toward
the status of the carriers by some OF
d the leading members of the Adminas-
a tration at Washington. This is not so
EkRpuch In the nature Of solicitude for the
Dads themselves as 1t is a recognition
Y that unless our transportation systems
are placed in a condition to make larger
earnings they viii not be able to pro-
vide the service the business of the
country demands
LEGAL QUESTION IN
RAIL GUARANTEES
It is believed to be possible to obtain
the use Of Government credit in aid Of
guaranteeing the security issues of the
railroads and thus enable them to pass
through the present depression The
question at issue In this respect is evil
IDENTIFY whether the Government has the
legal right to lend its credit to the car
riers or whether definite legislation on
this point would be required.
The expression of protest against CON
troll Of the railroads voiced in an address
this week by one Of the officials Of the
Pennsylvania Railroad will find Ii gen
eral echo in business sentiment. The
drastic policy Of regulation, it must be
admitted, has brought neither benefit to
the roads nor gain to the public.
The rise in sterling has been one Of the
outstanding features Of the week. The
advance has been variously explained
but the leading element in the movement
undoubtedly has been short covering hy
these international spectators in ex-
change who had anticipated a lower rate
for the pound and who had expected to
cover when the normal offerings Of cot
ton and grain bills came on the market
But these offerings never made their ap-
pearance because Great Britain took only
about 90 per cent of her expected re-
quirements in cotton and also let her
E&Theat import8tions run down until stocks
ON Liverpool were only 600 bushels.
There was no recourse for the shorts ex-
cept covering and a remarkable upward
movement was the result. Strength that
imported the final bullish flourish came
from Australias decision to make pay
ments on her war debt to the United
h1uEuOm. GuuOuDJeQiy W0en cotton ana
grain go forward, sterling will react sub
stantially.
It is probably superfuous to give Wall
streets opinion of the soldiers bonus"
The New York financial opinion is not
wholly dictated by considerations Of
egoistic interest. 1t believes that the
bonus" idea is an utterly unnecessary
undertaking and merely an attempt to
buy q political victory at the expense OF
a few scattered groups. So far as the
stax on stock and bond transfers is CON
cerned the opion is unanimous that it
will be disappointing as a revenue pro-
Queer, that it viii destroy the breadth
Of the market at a time when this quality
is so essential and most Of all that 1t
Will reduce income tax returns far more
than the amount that will be collected for
the bonus. In other words, the general
revenue eof the Government will suffer
through the attempt to collect this special