The New York herald., 1922-11-27
FINANCIAL NEWS
AND COMMENT
Absence Of Interest in Finan-
cial Markets Noticeable in
Past Week.
TRADERS MARKING TIME
Industrial and Trade Changes
Lack Significance and Con-
tribute to Apathy.
MARKING TIME

Probably at no time since the long
period of depression ended. more than a
year ago. has there been such complete
absence of interest in the financial mar
kets and such a lack Of significance in
the changes In trade and industry as
during the last week. Not only in
stocks. bonds, commodities. &C.. has
there been a general marking Of time
but industrial operations and indices OF
trade have budged very little from the
points at which they stood Just week
ago. In seeking for a reason for this
sudden abandonment Of interest many
cross currents are encountered. mono OF
which seems to account for the dullness
and apathy.
First, there Is the political considera'
tion. Much has been heard of radical
legislation and drastic changes in exist.
ing laws by a new and reacttonary ele-
ment in Congress-. Tho fact seems to be
lost sight of. however. that nearly thir-
teen months will elapse before that new
Congress takes charge Of the affairs OF
the nation and that by that time the
business boom upon which tho recent
activity has been built may have reached
its peak.
Speculation Overdone.
As far as the stock market is con.
cerned, the explanation is more or less
simple. In It's characteristic action OF
discounting the Improvement and ex.
pansion in business. the market went
highest point a huge public interest was
attracted. The first pause in the ad.
vance was ignored the second attracted
some interest !; then came a sharp break
which suggested very plainly that the
constructive action OF the market had
been very much overdone. and that cor
rective measures were In order.
The stoicism with which the speculat-
ing public accepted Its old role OF being
'in at the top" was we'll evidenced by
the manner in which It responded to
calls for margin. notwithstanding the
continued heaviness of the market 1t
had become a professional market in
which the public dared no longer take
an active part, but must sit back with
it's losses and await the time when the
upward swing would be once moro re-
sumed.
The professionals. finding that In
the absence Of public buying the line
of least resistance was downward, i'm
mediately shaped their plans to meet
the new condition and the result has
been a steadily declining trend Of prices.
The length of time 1t will continue can
be measured only by. the period neces-
sary for both the complete correction
of the speculative position of stocks and
the return of confidence In values as
measured by Stock Exchange prices.
Business Gains Maintained.
So much for the stock market. In
business and iadustry all Of the past
gains have been well maintained, but
there has been little further forward
movement during the week. The weekly
trade reviews record the usual expan-
sion of holiday buying. but so but little
farther. Steel operations are main
tained around the so per cent. level
established a fortnight ago and new
business taken by these manufacturing
concerns suggests that it will be possi-
BILE to continue on the present basis for
some time to come. The same is true
OF other basic lines.
nlficance last week was the way In
which commodity prices have been
maintained near their highest points
for the year. This brings one again to
the discussion Of the farmers buying
power. At no time has there ever been
real lasting prosperity without cor
responding Improvement In the finances
of the agricultural districts. Con-
versely, general business expansion and
steady improvement have almost al
ways followed close on the heels OF a
situation In which the farmers were
made prosperous. How well remcm-
bered Is the almost unprecedented
period of depression in 1921 when the
purchasing power of farm products as
calculated by the Department of Agri-
culture was at its lowest point.
The reduction OF 1900 cars in the car
loadings report made public last week
was something of a surprise and may
have reflected momentary hesitation.
II could not be said that II marked the
end of the heavy crop moving period.
for wheat was one of only three classes
of merchandise which showed an in
crease. The others were coke and forest
products. Bank clearings for the week
ended November q declined 4-1o OF /
per cent, a small drop after an ad-
vance OF Approximately % per cent in
comparison with year ago.
Any change In the banking and credit
position during the last week has been
In the direction of Improvement This
has been largely the result of a return
of large portion of the huge funds
required In the West for the movement
90 crops and of liquidation I'm the stock
and bond markets. Ii does not eeeu,