The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1922-03-11

economic indiccs OF N nni
Perhaps these can be most clearly
obrerved In the speculative mar
kots. FOR h is here That puhliu in
terest concentrates and Spectacular
movements In prices always excite
the speculative instincts Of "a big
majority OF the people.
The rise In the stock market
since rho turn OF the year, nc
compnnied BY tower sctbacks aud
reactions than are usually looked
FOR In such % forward movement,
should by an the rules OF the game
be forccnsting q period Of cont
mercial and industrial prosperity
lust a Few months hence There
iH only one Fly IN the ointment and
that IL that the current In
the stock market II Tor the most
part engineered by a group Of pro-
fcasiuuml operators who have ntcn
warning and wash-saling' their
favorltcn round and round the
honrd in the hope OF gradually IN
tlcinG the wary public within tho
ring. and gently but firmly IN
loading upon him, leaving him 10
hold tie bag Judging from the
daily reports OF busted broker
! u tho street. ID would appear that
INC IhhANA nus N'NN hfNfA hNNIk NN
| stocks to q considerable extent.
But these brokers have never
executed n orders. They have
been betting against their cus-
tumorn on tho basis OF heads I
win. tails you lose, ard In some
cufca the dcmund for a lew ulltry
dollars has caused them 10 dccdmp.
! Public Not In.
Az yet there II no evidence OF "A
broad gcnarul demand for stooks.
one that would be a factor la an
upward swing OF prices and until
this public participation II more IN
evidence. Wall strcct VIII profit
little from the window dressing
procena now In operation Leading
brokers are bcckoning franticaliy
10 their mailing lists. advising
them to buy with caution and %
ready TO profit by any setback in
prloen The general view OF
thuru outside the brokerage houses
ia that II Is mor profitable to sell
on advances than 10 purchase on
reaction,
One characteristic Of the finan-
ciul markets Of the present Time u
the tendency Of Investment spcuri-
ties. Their trend i definitely up
wards Save FOR the Out and out
gambler the possibilities for profile
N securities which yield a certain
income should prove sufficiently
rcmunernttvc 20 compensate Them
ftr any profits they may miss 10y
failing "a duhbic In speculative
ifsucH whore thc gains are more
or less spasmOdic ana shortened.
Small blocks OF stocks are being
bought by the rank and file OF in
N%estors, but such purchases have
little effect upon the broad swings
~ the market which now seem to
hc c%npineored by professional OPP
cratlon.
Buslncss.
When we turn to the economic
ana commercial aspects OF the
present situation, a much moro
favorable Wow Is opened 10 our OBJ
ucrNation, II n true that some OF
"a giant corporations are al prcs-
ont publisiing statements thnt
shrw IN extremely unfnVorahly for
ta.l There Is nothing Inspiring
In "a statement such as that OF the
General Motors corporation with
% deficit, after n year y operation.
Of over IS million dollars. But All
mat ~ water hat has gone over
the dam, aud the heads OF thcsr
corporations look forward. not
back ward, They have taken fhpir
losses, marked down their M
vcntoficH ard axe ready to take up
their stride for the year that lies
directly In front, Already their
lA22 operations exhibit a. decided
contrast Ia those OF 1921. steel.
iron, copper, motor and OF Indus
ifioH LOOK with confidence to the
tuturo and In the majority OF casca
thcir security prices have not vet
discounted their wonderful oppor-
tunities FOR profit. The railroads.
too. with the peg OF government
guarantee ana government revolv-
ing funds removed. will mako
better Roadway under the stimulus
OF larger freight ana passenger
tfllHr u "a more favorable attl-
Jude toward them by investors a.
u class and the public in general.
Band Market.
Dow, Jones & Company's indies
number for February, based ON
average price aud yields OF 40 cor
poration bonds, including high and
second grade railroad. public utility
ana Industrial bonds, advanced 40
point IN obruary to 1911. Iiiat,
grade railroad bonds reoeded sliehi-
~ ana the sccund grade issues weto
almost stationery. Public uIllitio.
showed largest gain. i27 poiata.
Industrial iAsues gained eighty.
rms steady movemen; in the Indies
number shows that In the invest
Hichi group bond prices have dis,
counted conditions TO date and a
further trend win doubtless bo in,
h~uenccd by final action In cohgrcss
on the soldier bonus blli. n this
hill u put through without features
nat would dlNturb the money ami
Investment markets., such AZ a gov
eminent bond issue or issue OF ne-
gotinblc treasury certificates. noud
prices should HO higher. While
ihN"stmcnt Issues were stendy lasf
month the speculative list ana