The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1922-04-29

for IT, record Of ''miliiou.sharo
days on the New York stock tx
change. ~ IL the only month IN
over iva years that has hecn sig
naiixed by n turnover o. OveF two
million sharcs o. stock ON u single
business day, and Il has served to
convince the shrewdest observers
Of Wall street conditions that the
bull market of Igs2 has been a
reality. rherc has not been lack
ing a considerable portion of On
%sorvativc operators m brokers
who have cautioned against III"
bidding upward Of stock prices be-
yond the levels warranted by the
improved busincsh condition. but
whcn spectators are working FOR
a rising market; they seldom, II
over. know when they have reach
ed the top.
statistIcians have figured that
the advance from AZ 10 40 points
In the outstanding liberty bonds has
added over two aud onc-half bill
lions Of dollars TO the hoiderp OF
these war bond issues and THAI the
markot gains OF 80 OF the LEADING
industrial railroad and oil storks
on the New York Stock Exchange
from the low points Of 1871 has
been no less than thgee and a half
billion doil9rs. United States Steel.
for example. which advances from
20 - TO 100 les, means an ap-
probation OF SiA7.4O7,7gs in lne
total market value Of tn stock.
Anaconda Copper has Sdvanood
S6S, 100000 General Electric
sos. 500. 600; New York Central.
81 zoe. 600. Allied Chemical ga
fbp. 0n0: Pacific on 9il3.7h0,oO0:
Baltimore a ohio t2A. 500. 0OU.
Pennsylvania Railroad SiO2. $50
zoe. Consolidated Gas S35. .00O,
S~tudebaker Sf7.fUO.o00.
Naturally, the question arises.
are these corporations really worth
The difference represented by these
figures. and on What factor. or
combination Of factors. should such
"a computation bee based. Surely
there hus been no great additions
To physical property that could Dos
inNenturlod al over thre. billion Of
dollars over N above the previous
year u records.
The question az security values.
stocks ~ woll ~ bonds, hinges
very largely upon tlmt Of net oarn-
ings. The company that can
maintain a good dividend record.
add steadily "a its cash surplus and
expand its productive facilities
- ~ .H y AkN AA NNA NNH
suit If frequent BORROWING. should.
IN the long run. recoivo the best
consideration from American In
vcstorH Hut market prices do not
always for the actual accom-
plishmonts ~ these results. Tho
shrcwd inVostor--or apeculatur-ia
the onc who can forsee them
tarthcst ln advance and profit by
the subsequent rise In prices which
such "a result inevitably ushcrs Ia
Unfortunately, beyond the gem
hrnl Increase In the operating
capacity Of tho steel aulen and
the better showing OF the railroad
CORPORATIONS. the year Ig23 has
thus far produced little more than
promises Of better things to come
Very little has been done to restore
the Wholesale passing Or reduction
of dividends that characterized me
laFt half Of 1890 and the first part
OF 1921 4 great many industrial
organizations that confessed nnnn-
cinl ineapacity bordering on bank
rnptcy have showed very little real
pruRrosl In bottsring their condi-
Ton. many OF them are still in tho
hands Of bankers committees
which are patiently but lnboriously
r}ing 20 put them on their feet.
f~hctorias and plants into which
millions OF dollars tsomo Of the
money representing the results Of
bond galesD have not produced a
dollars worth Of real commoditics
which overhead aud interest
charges have boon steadily mount
tnc. Hundreds NJ small concerns
throughout tho country are mrug-
Hiing along under the handicap ~
united each resources, and thoit
/ "NIIAuINnm Hos moi 81 much - go.
ing out bounteoua dividend checke
az In using their available cash IN
strengthening their position and q
expanding their producing capnrlt,
u - c~alitfnitotM 20 tusc IA rlss
IN stock prices upon an abundant
Ut cheap and otherwise unemployed
money Prosperity can come onl,
through the employment OF All IN,
country . resources including IL,
money supply All such crnA ui
speculative advance bring their
own c%orrectivns with thom ana M,
result h to force reaction with ao.
campaigning unfavornbio condi.
ions. Unless a stronger founda-
lion ron he laid for market value,
Than cheap money and the deeirs
for easy profits through oNccssiV,
speculation. The continued inftatfor
OF prices aboee present levels con
. taiht very decided elements ol
hazard This u an old story which
"a repeatedly boon illustrated III
recent years, but the moral ol
= which never seen 10 be thorotfahl,
learned by the rank and file III
investors Or spectators.
Bonds aud Money
. The market for speculative bond
has been IN "a state Of fcycrlsh ac.
tlNity during the past week. and
prices have advanced more ~
Keeping with tho stock market psc,
Than with the maid ana diEnifiod
tenor Of Investment securities.
N ~ pcrelhlo. 10 find here AMI
There, a speculative bond 'Sat hn.
nearly doubled In price since ths
/. turn Or tho year, and not infre.
1aontly advances OF from rs To =.
per cent In keeping with iLs
Erhdusi reduction ~ muncy rnirs
AwtAaA - ~. lH-l- 49,