The Washington times., 1922-12-03
STOCK MOVEMENTS
PARALLEL TREND OF
INDUSTRIAL SPHERE
Advance Of Speculative Issues
During Past Week Corrects O
OVerS0Id Market.
BY w. s. COUSINS.

BY w. 8. COUSINS.
NEW YORK, Dec. 2.-Movements
in prices of speculative stocks dur
ing the past week were more nearly
parallel with the trend OF develop
ments in domestic business and In
dustry, the record Of which has
been as encouraging as any similar
period since the midsummer months.
But the advance in speculative
stocks, much of which did little
more than correct the oversold con-
dition of the market, was not re-
sumed until disastrous breaktaoin
sumed until another disastrous
break in some of the market iead.
ers had sent them to the lowest
nrice level since the elimination OF
the October boom.
REACTION RESUMED.
The reaction which had been car
ried to an extreme point In the
previous week was resumed with
out interruption when the market
opened on Monday but the drives
were directed against the specula'
tive leaders with a view to causing
further unsettlement in the balance
of the list. But, far from weaken
ing the foundation OF the price
structure, the heavy selling wnicn
had long been in progress had IN
reality created the best possipie
basis for the rally which eVentuaiiy
came along. Not only was there
considerable short interest built up
=. a resuIt of the professional short
selling over the period Of month
or more, but high grade investment
stocks had been marked down 10
point where they made strong ap-
neal to traders to whom the long
null Investment return inducemeht Is
paramount. The continuation OF
special stock and cash DIVIDENDS oy
important Industrial concerns was
thus a strong point OF contac, De
tween the stock market ana III
yestors of this class.
REACHES PEAK FRIDAY.
The most robust part Of tins
veek's rally occurred on Friday.
C,Iriously enough, this rally was
sandwiched in between two OH
days'' in the market, the Thanks'
giving holiday and the SATURDAY
half.session. 1t Is also worthy o'
comment that the railroad stocks'
which had been so weak under pres
sure in the previous period, now oe-
came the most dependable leaders
An the upward movement. The con-
structiye element in Wall street
ms not slow to realize the fact tnat
A IN a far cry from the threatening
vaporings of a radical element IN
Congress to the substitution OF their
theories for the laws which are now
written on the statute BOOKS. VI
course, II was to the interest OF the
nrofessional bulls to have the bears
ride their hobby to the limit, Tor In
this way they were in position 10
nick up their favorite stocks AZ
much lower prices than II the preak
in prices had not come as II dlo.
The October railroad statements
which are now about completed, are
not as favorable as had been nopen
for mainly for the reason that ad'
ditional repair work which had been
left over from the shopmen's strike
had TO he taken from October earn
inrs, But November car loadings
set a record for all time. and unless
too many impediments are placed on
the tracks in the forthcoming period,
the railroads should now enjoy
season of modest prosperity. An ef-
fort was made this week to cause
weakness in some of the low priced
rails by a renewal of the receivership
rossip about the Erie system. The
attempt was abortive and called forth
q reassuring statement from the
president of the road.
There was a good market for the
Industrial, steel and copper stocks
in the latter part of the week, and
in not a few cases representatives
OF the aforementioned group went
into new high-price territory for the
year. The list Is naturally becom-
ing smaller as the end OF the year
approaches. but there is still room
for belated recognition Of the en-
HANGED value of the securities of In.
dustrial concerns which are making
spectacular records in production
and in earnings for their stock
holders.
Opinion Is fairly evenly divided
in the speculative district as to the
probable developments in the stock
market over the next thirty days.
It is believed that a good portion of
the selling to establish losses has
been completed, though a renewal
Of this liquidation Is looked for In
the latter part Of the month. But,
in contrast to last year the country
is now going into year which, be-
cause OF the excellent accomplish
ments Of the past twelve months,
is reasonably certain to ush!N In
period of prosperity that will easily
surpass any year since the ending
Of the great war. For that reason
Il is logical to look for a resumption
OF the upward movement In the
stock market. early in 1928.
BOND MARKET.
While the demand for bonds dNN
ing the past week has not been as
brisk as II was few months ago,
investment bankers report that they