New-York tribune., 1922-03-22
Stock Prices
Higher Despite
Profit Taking
wA
Impulses Toward Continued
Advances ir Securities.
However. Not as Dominant
as They We're Last Week

Security prices yesterday further
revealed their ability to resist the ad-
verse affects of proht-taking sales. In
spite of considerable realizing, indus
trial and railroad shares in some
what irregular session of slightly
diminished activity turned moderately
higher on the average. The mean price
of fifty representative shares, which
showed a decline on Monday, was
higher at the close yesterday than on
Saturday.
Impulses toward continued gains
were not as dominant as last week
Some shrewd operators, after the ac-
celerated upturn of the last three
weeks, which followed slowly rising
prices since last August. were inclined
to believe the time had come for watch
full waiting. On the other hand, de-
spite the changed technical position,
there seemed to be relatively little
willingness to take an extended short
position
To justify continued striking gains
in security prices there ought to be
either marked improveent in domestic
business in the months that lie ahead,
or an adjustment of the economic
tangles growing out Of the war
reparations and inter-Allied debts
or both. Regarding the latter, there
is some reservation regarding the ef-
fectiveness Of what may be attempted
at Genoa, since the United States has
declined to participate in that confer
ence. Concerning domestic business,
observers perceive few signs of
marked gains in current earnings, al
though the devastating effects OF
drastic price declines necesstating
huge inventory write offs which ap-
pear in the 1921 annual reports seem
unlikely to be repeated this year. The
very apparent dulness in business has
been factor in the significant ease
ment of money, which has been one Of
the main fountains and springs Of
strength in the recent security mar
kets. Finding little profitable en-
ployment in business, funds have been
drifting into securities, at first espe-
cially into the investment issues. OF
late there has been a tendency to &C
quire even the most speculative of
listed stocks.
striking Improvement in trade !
would perhaps check the progressive
increase in the abundance of funds, but /
would also, on the other hand, increase /
the profits of corporations and, there /
fore, the attractiveness of common /
shares. After it's long rise, the market
has reached resting point where
spectators desire to orient themselves |
Part of the underlying strength orig |
mates from increasing public buying
by those who were actuated merely by
the spectacle of rising prices. The
abilty of prices to resist selling waves
is notable, yet there is tendency on
the part of the astute to move with
great caution and to study fundamen-
tails assiduously in quest Of signposts
to the future. The money easement
was reflected in new high prices fer
United States government obligations
In quiet market cotton prices rose
from. to IL points, but favorable facts
regarding the wheat crop and diges-
ton of statistics on the visible supply
caused heavy selling of futures and
break of 15s to 3s4 cents bushe
Sterling was firm yesterday, and the
Continentals generally higher, and the
marks declined