Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-02-23
MARKET GAIN
RESPONSE TO
FUNDAMENTALS
Worst Over and Better Days
Ahead Feeling Prevails
in Buying.
FUTURE IS DISCOUNTED
Special to Indiana Daily Times
and Philadelphia Public Ledger.
BY MONITOR.

BY NIONITOR.
NEW YORK, Feb 23.--In the rush of
attempting to comment on the market
influences that make their appearance
from day to day, it is difficult to view
the situation with any degree of per-
spective 1t is another case of failing
to see the forest on account of the trees
There have been various attempts to
explain the strength of the stock market
on the customary grounds of manipuia-
ton or its technical position. These
theories constitute the traditional refuge
Of these who are either unable or I'M
willing to go more deeply into under
lying causes At any rate a market
movement such as has been witnessed
since last September with only Occa-
sional reactions and setbacks must be
responding to fundamentals of major
caliber No mere set Of trivialities
could have exercised such q striking eff
feet on listed values.
TECHNICAL POSITION
MERELY INSTRUMENT.
The technical position Of the market,
the operation of pools and other market
appurtenances are merely instruments
employed to work out Il given objective.
The primal force undoubtedly is a great
speculative tendency, which is now in
the early stages of development. The
stagnation in business, the liquidation
that has been so pronounced in g" many
lines of activity and in so many COM
modities is finding its reflex in growing
interest in the security markets. Here
is found a field for activity and for the
employment of capital released by in
dustry and trade.
Relatively cheaper and actually more
abundant money the liquidated position
Of the market, thereby meaning a fairly
low level of security prices and small
public speculative holdings Of stocks have
constituted the bases upon which the
speculative movement is founded. The
impulse for action is psychological and
is rooted in the deep and abiding OPP
timism that is confident of improvement
The steel industry now is operating. let
us say, on n so per cent basis. United
States Steel is so organized that on a
normal scale of activity it can make a
profit on every operation from the min
ing of its coal and orc to the distribu-
ton of its countless finished products
MARKET LEADER
KEPT IN VIEW.
With a book value far in excess of
any figure at which it has ever sold.
with ample capital reserves and with
IuUuSlIS Itf WING II - ILLlt bNtdNAOIi
for wonder that speculation should turn
to this market leader in the confident
belief that the coming bull market will
register a price for the stock more nearly
in keeping with its known value and its
great prospects.
What is true of United. States Steel is
true of many other listed stocks Of
proven merit The principle can be il
Illustrated by numerous instances, but the
principle remains unchanged. Specula
ton is setting in. It is beginning to
discount the future by saying that the
worst is over and that better days are
ahead The small speculative holdings
of stock and the operations of pools are
merely favorable incidents. Money, of
course. is highly important, but here
also the situation is favorablc.-Copy-
right 1922. by Public Ledger Company