The Washington times., 1922-09-26
Market Comment

Copyright. 1922. by Cosmopolitan News
Service.)
NEW YORK, Sept. 26.-It is be-
coming more difficult to appraise
correctly the effect of both domestic
and worldwide developments upon
the principal speculative markets.
not only stocks and bonds, but COM
modities, foodstuffs, cotton, clothing
material, etc. A good many of the
Wall Street leaders are committed
to the view that the long swings in
stock prices are maintained regard.
less of outside developments, unless,
OF course, they be of such magnitude
| that they are world wide in their et-
fects. Events of lesser magnitude
may delay these movements in price,
but cannot permanently interfere
with them. In the grain markets, IT
Is the export surplus which largely
determines prices, and that is why
wheat prices move so nerVously un-
der the influence of a war scare.
The same might be said for cotton,
though America is not the sole
source of raw cotton.
As to the stock market, the ma
jority professional opinion in Wall
| Street is that the bull market has
not yet been concluded, and that re-
action will not make its appearance
until business and trade in every
! line is booming. While most Of the
handicaps TO booming business have
been brushed aside. it can hardly be
said that the business boom Is here
| in all its force, as yet.
When the prominent steel com
panies, including the United states
| Steel Corporation, marked up the
price of steel rails from $40 TO SAB
a ton, effective October l, It was
! freely predicted that the big rail
road companies would rush in their
+ orders before that date in order to
| take advantage Of the lower price
| The principal advantage TO steel
companies would be in the booking
of orders to such an extent that
they would know to what extent
| they would need TO operate their
mills in the next few months. These
expectations have been realized, and
IL is said that about 100000 tons
in new steel rail orders are over
hanging the market, the largest
item being the New York Central S
requirements Of 100000 tons. AS a
next report of forward business Of
the United States Steel Corporation
will probably be the best for the
year to date.
The railroads OF the country now
have, an average OF 81 per cent
Of their normal working shop
forces. according to reliable reports
of the railway executives. Some
of the largest systems have re-
gained all of their striking forces.
while the roads in the East have
succeeded in building their shop
forces up to 30 per cent of normal.
Officially, the national shopmon's s
strike has not yet been settled,
but these figures show that the
separate peace" agreement has
been quite effective.
Banking syndicates which OF late
have introduced q number of stock
underwritinEs to the investing pub
lie report that they have been as
successful in these operations as
with their bond offerings. The sYs-
TEN seems to be much more sue
Cessful than by the method OF cir
Cularizing Individual investors and
following up with personal calls by
security statesmen. New offerings
which have the Endorsement of
prominent banking and investment
organizations are much more ac-
ceptable than those which originate
in houses of questionable reputa-
ton. Furthermore, the former
method is much less expensive and
more expeditions.
Trading in oil stocks of late has
been somewhat enlivened by the
recurrence of merger rumors, some
of which have been tackled on to
the most prominent companies. The
departure of J. S. Cosden for Eu-
! rope has, of course. revived the re-
port that the Cosden ana Royal
Dutch companies will at least ef-
feet a working agreement Cali
fornia Petroleum. .Barnsdall Sin.
clair, Transcontincntal. Producers
| and Refners, and Houston have AL
been associated in some degree with
contemplated mergers.