The Washington times., 1922-08-09

Market Comment

NEW YORK. Aug. o. There
always las been, and doubtless
always win be. a difference of opinion
among expert financial leaders on
important questions. This difference
OF. opinion is more apt to express
vself In times OF national crises than
when things are moving along
smoothly. There has probably never
been time since the armtistice when
professional Wall Street was so
sharply divided In its opinion con-
cerning the future course of the
stock market tban at present. Those
who argue strehuousiy for the proba-
bilisies of continued advance or
prices MAINTAIN that the present un-
settlement IL only temporary and
cannot hold up the steady course OF
business reconstruction. The argu-
ment for lower prices Is, of course,
contained In the fear of damage to
important industries because Of fuel
shortage and probable limitation OF
transportation facilities.
AT such times the stock market is
likely to be under the dominance or
professional traders who are eagerly
watching an opportunity to raid
stocks In one direction, and to trap
the shorts I'm others. and II is good
policy for small traders to be ION
the outside looking In" Bankers
and investors may safely follow the
policy of watchfiil waiting. and this
is apparently what they are doing at
the present time.
A prominent commission house
points out that. contrary to a widely
held opinion. this 10 good time TO
purchase the better. grade Of divi-
dend paying motor stocks, for the
reason that the substantial conira-
nies have passed through most
profitable season and are likely TO
conserve their resources sufficiently
to take care of their dividends. II
is most unlikely, they point out,
that a strong motor corporation
would have increased Its dividend TO
10 per cent should there be any
danger Of it's being unable to con.
tinue II for a few years, at least. II
is also pointed out that during a
season of bearish attacks on parti,
have their best opportunities to ac.
quire these stocks at good prices
though. Of course, they may not be
bottom prices. Most people incline
to the view that the motor industry
| will have the best second half year
IN 1922 that 1t has had In q long
time.
In business circles a great deal
of confidence is placed in the
monthly summary of the Fedora
Reserve Board, for the reason that
! this summary is based upon re
ports from a wide circle of business
and financial experts. most OF
which are absolutely neutral ir
their positions and have no par
ticular axes to grind. The board
reports, that the financial position
of business is decidedly better thar
year ago. Inventory on ths
whole has been written off suffi
GENTLY. II had also moved from
distributors' hands. 30 that stocks
maintained have been considerabl,
reduced. Trade obligations hav,
not yet shown a corresponding de
crease. but liquidation OF indebted
ness to banks has made grea'
progress.
Before the end of the week q
more definite idea of the effects
Of the strikes on the July earnings
OF the railroads should be secured
Usually the Kansas City Southern
is the first road to make IL,
monthly report. The preliminary
figures Of the Buffalo. Rochester
and PittsbuI gh railway. the first &c
be published this month. show thai
earnings for July decreased ovei
70 per cent from those of a year
ago. A distinct loss has been met
with by the roads In the union Goa
fields. while the ''ill wind" has
brought extra business to the road,
| In the nonunion fields.