Arizona republican., 1922-01-08
STOCK LETTER
Weeks Reviea0
Furnished By
A. w. COOTE,
Hotel Adams Bldg.

NEW YORK, Jan 7--Opening week
OF trading for the new year brought
into sharp conflict prevailing pro-
fessional factors which have made
the fall rise possible. For six weeks
the ranks of actual bears have been
steadily increased by accesions from
the bull contingent because people
who were extremely optimistic for
the pull were of the opinion that a
reaction was overdue. on Tuesday
following the holidays this point of
view took concrete form in a COM
bination of profit taking and short
selling which brought about quite a
sharp setback. so much so, that opin-
ION was very nearly unanimous as
to the decline proceeding further.
On Wednesday, however, secondary
liquidation failed to appear and the
market had a sharp rally. What we
have been unable to understand is
how people could have held stocks
through December without knowing
that some bad news was inevitable
on the condition around the first of
the year.
When one looks back TO the situa-
tion as it appeared last July and
August and the dire probabilities
were then predicted, the way in
which the financial 'and industrial
world has righted itself is surpris-
ing. We believe that everyone should
be prepared for more bad news. Bus
mess and speculation cannot go
through such an ordeal as presented
itself last year without some fatali-
ties. That the general situation has
discounted these unpleasant Incl
dents seems proven, to our mind, by
the money situation. The most inn
portant thing last week was the de-
cline in the call money rate to 81
and the lower rates for time money.
Money may not be available in un-
interrupted supply at these rates for
time money but we believe the ten
dency is lower.
Under such circumstances, the
policy of selling stocks in expectation
of being able to buy them cheaper
during the next three weeks may be
a wise one, but we believe that for
the average follower of the market
the policy of holding some stocks
now and averaging on weakness will
prove to be the wiser course. Rail-
road earnings continue to show eX-
tremely small volume of contract. If
the roads were on the same tariff
basis as prevailed two years ago the
situation OF nearly half of them
would be critical. Operating figures
show splendid work being done by
executives to bring about economies
by a new spirit on the part of most
of the men. In this case weakest
roads like New Haven, the Ions
drawn out struggle manifests Itself
in critical situation. The old Mel
lon system owes almost every road
in it's territory and all of the big
transcontinental systems heavy bal
ances on traffic paid at New England
points and not live up with the orig
mating carrier. The situation of the
New Haven is critical but it would
not take much to prolong its fate and
help may be given on account of SEN
timental effect. New York Central
which has been favorably mentioned
in these wires, was endorsed during
the week by the George F. Baker, one
of the shrewdest capitalists in the
country when he elected to put his
| connection with this system over al
other roads In the country. Lehigf
Valley is also attracting buying oi
the best type.
Among issues we like US, All, pr.
| Can prf., HI. pr, $50, ALO., AT.
| CDP., Geo., Cons. Cas-, Ell. Mont
| Power, Manitai Sugar, SIX, Stu.
E. f. HUTTON & co.
BY Whelan.