Evening star., 1922-04-16
by I. A. FLEMING.


Not a single discouraging factor
developed during the past week to
give Wall street cause to halt and
ask itself whesher,4in the continuous
bull merket for e:last nine months.
the measure of recovery in trade and
commerce had not been fully dis
counted. --'-'- '-- .'-'- 81. -' = e.
The .-miners.. strike. was scarcely
mentioned, save in the news columns
of the press: the Genoa conference.
threatened with disruption in its first
moments of existence. gave. promise,
a little~later, of eventually working
out something for the benefit OF
humanity-ro- one Knows or dares
predict. what. - ~ 49,.
The fact that money is drug on
the market, that business demands
such a comparatively small portion
of it for use in regular channels, ana,
therefore, that government hnancins
as low as 31f per cent Is possiole,
and that bank discount rates are
lower, was readily accorded q wei,
come as an added reason why good
interest-payfng bonds should move
up sharply. and not in any way con-
sidered as cause for caution IN Inc
purchasing Of low dividend or even
non dividend. paying stocks. in wnfch
advances OF % to so per cent have oeeh
recorded "t o.
More Bull Factors. @
When the United states Steel Cor
poratfon selling nearly 80 polntS
higher than ten months ago, an
nounced the first actual increase IN
untitled orders on its books. tne re,
port was received with cneers anu
4harn bulge in prices.
A cent a gallon advance in gasoline
prices has been offered as an excuse
for one of the widest trading Gays
in the oil shares that Wall street mas
yet known.
Shares of corporations that are out
of the dividend class, some OF them
at least for the next decade, are ac-
tually being traded in every Gay.
shares Of stocks of corporations tnss
under the old rules of trading woulo
long since have been struggling for
a wind-up in a bankrupt court.
- The New Method.
The new method, and the one which
Is responsible for the continued SELL
ing. Of these stocks on Wall street.
is found in the nurse treatment
rather than the legal shakeout.
The creditors nurse and Watcn tne
first.
II the patient gives the right kind
of response to kindly nursing oy
creditors, there Is q chance that some
day, some time. there may pc some
the nursing expenses have been paid
One-thirdsof the stocks featured IN
the daily advances carry with them
no dividend distribution.
Serious setbacks are frequently
avoided by q group or pool OF traders
getting back Of correlated stocks on the
discovery Of weakness elsewhere, In
this way offsetting selling
stocks May Continue Advancing.
There is. nothing to indicate that
stocks will not resume their marcn
to 11igher levels with the coming OF
Monday or that the gains OF last week
will not be duplicated.
The printing presses are busy Turn
ing out certificates and bonds. for ITS
fair weather."
There have been no predictions
made here, just q plain statement OF
. facts, nor do they contradict the
theory advanced by many market ad-
vocates that the advance will con-
tinue.
Meanwhile the side-issue operators
using stocks upon which no one has
Information, and bonds against wnicn
no charge for listing has been made
stocks in this and that and the other
corporation--are making a harvest on
the strength Of the rise ,on Wall
street. -,
Tarin Tinkerins.
Tho work Of tinkering a new tariff
law into shape for enactment Is on
at Washington. Usually New York Is
nightly interested in tar16 legtsla-
tion, but just now doesn't appear to
care much whether high or low sched-
ules prevail.
Retirement General
There can be no, question but in
many lines of business there has been
a decided improvement, but the real
thermometers OF trade, the reports OF
credit clearing houses and the daily
clearings themselves, are giving some
Indications of slowing up.
The railroad equipment business,
the metal business, is showing ma
terial betterment and must continue
to Improve. for the reason that the
railroads of the country have 80 long
Neglected their upkeep and mainte-
nance that they can no longer delay In
replenishing their supply OF cars, 10
oomotives and repair work generally.
Immense activity In building opera
tions all over the country has brought
better business.
THE lateness of Easter-April 16-
may be unfavorable for the women's
goods trade, while the sudden change
from early spring to almost mtdsum-
NOR weather will cause quite carry
coats for the midseason trade.
Merchants have not enlarged their
purchases to the danger point, one
severe warning such as they had in
'20.'21 being sufficient to make eau
ton dominant, while the discovered
fact incident as an aftermath to the
occasions mentioned. that 1t Is easier
to ,replenish stocks from time to time
than to keep them when the demand
10 not and then get rid, Of them
through sacrifice. -
What Easy Money Means.
Liberty bonds have grazed and some
of them crossed par. This Is due to
tho fact that they furnish money
rates Of interest with absolute safety.
and that is that the normal channels
Of industry are not active to the point
where the demand for capital is any
thing like the supply avai!ble.
Then rates go down. Government
takes advantage and floats six-month
refunding operations of other maturi-
ties before the market stiffens up.
Many large corporations will prob
ably undertake the refunding Of their
6,7-s per cent loans put out in the
emergsnsy peflGd9 year Sstisr or Two tSsn asG
par, inserted with a view of stimulat-,
dnfr the sale Of the issue. may be ad-
vantageously exercised when nego-
tiations are completed for saving or
3 per cent, mayhap more, annually.
A plethora of money usually attends
periods of unemployment-but not
the unemployed. ~'.r
~ May Go the Other Way.
While everything seems to favor
the continued advance In stocks.
markets have. been known to go the
other way. and the time to sell has