Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-10-30
MARKETS PECULIAR
: TURN C0NFUSES Street
Pessirnis,s Say Shares, Espc-
7cially Induslrials, Have Out
: distanccd Their Earnings.
IMPOSING SIDES Ann HOPEFUL
confident Prices VIII Continue Up-
ward, Although Admitting Tint
Many Inaues HIVE lind Sufficient
." depreciation.
Uy IirOndnn Will.

Dy HrOndnn wall.
NEW YORK. Oct. 29--wall Street
''btgins the new week more confused
IMAM for many months as to the
probable trend OF the stock market
':Tho pcSsiinists declare that shares
-"cHpeciaily the Industrial group, have
ou;distanced their earnings While
thoso on the constructive side admit
mat many issues have had sufficient
appreciation in quoted market value
they believe prices viii continue up
ward because stocks are lodged
with the big people and remain to
be distributed
Much Is heard abcu, the banks
and true, companies being desirous
:. OF curtail!ng brokerage loans The
bnnkers ar" also supposed to b.
against Increased speculation in the
stock market. Thls is pure bunkum.
lcchusc the real people ar. heavily
committed to the huIl side and are
anxious t" see q strrnl; and active
stock mark", on which to iiuuidatc
BROKERS L"mns IN EXCESS.
brokers loans are much IN cxccss
OF what they were "a year ago. An
authority SAYS total brnkcrag. loans
AFRO now approximately $500. Oo0. 900
This banker declares that II is gen
orally Understood among the bank
ghg fraternity that loans could cx-
ehnd To S2.250, 100000 before any
measurcs should bc taken TO correct
additional Imitation.
There in a big difference Of opin-
ION as 10 whether The general public
Ia IN this stock market to any cS-
tent Thos. houses which ar. doing
hut lituo business say TIA. rank ana
hlc are not Interested but the big
Kcst commission firms which have
wires stretching to practically all
parts OF the country. are authority
for the statement that tn. public {.
committed quite considerably TO the
bull Side.
because the bond market shows
Assigns OF hesitation - no reason to
Nook for tho beginning OF down
ward movement in stocks ~ one
banker points out. the stock market
did not start It's advance until about
ak months after bond prices began
rising. Movements in stocks arc al
ways carried TO extremes. and this
constructiT" campaign Is mo, comSid
cred an exception by veteran Wall
street men,
STANDARD on ru1,linr.
~ Is the standard OF ready TO trans
fer It's sccurlt!os u the general pub
lic' That is one important question
under discussion in tho financial d.s-
,ric, THIS can be answered yes"
and mo In other words. the in
bus TO gain tho publlcs good viii
FOR business reasons. They are s,nS-
ious TO follow in the footsteps Of the
New YORK T"lephon" and other com
rauics which have permitted in
vcstors To buy their shares in an -t-
\ fort TO Great" good feeling and fore
| Stall hostile lcg!slat!on.
- 'rh" large melons" being declared
by tho standard oil Companies sim
piy represents the method being used
= hy the bis people to transfer SOM
/ ~ their securities 80 persons with
surplus funds. mss group rocor
:, niz"d that 10 obtain the good viii
\ OF the GENERAL public. II was ncccs-
sary to max" people shareholders.
Reduce rnr values.
With Standard oil stocks selling
FOR several hundred dollars pc.
8 share. this MAS impossible. II. there
fore. became cxpcdi.ut TO reduce tho
par values 50 that the securities
could he brought within reach OF The
smaller investor. The possibility or
q increased taxation also furnished an
other important, incentive.
Investment bankers do not believe
there will TO much change in none,
8 rates the remainder OF this year. The
4 fact that many business men hav.
B..bccn selling securities 10 finance in
: creased trade would indicate tha,
early next year there VIII be 1t ma
tcrial expansion in the borrowers by
businesses In general. Bonds always
decline when money rates advance
: and rise when rates rccede. For this
reason there are many who believe
Nhat the top Of the market has been
S.eu for the next six months While
bonds are expected 10 rcccde. stock $
are believed TO he headed upward
because o! the expansion in general
Il trade.