Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-09-02
Prices DROOP IN
A marrow MARKET
Signals Point to the Situation
Drifting Into a Secondary
q Initiation Period
New York, Sept. 2.-Hollday infu.

enSes and Gompers' threat to call q
general strike produced both q marked
contraction In the volume OF trading
and considerable irregularity in price
movement in today's brief session In the
stock market
At the outset the senelist list held up
fairly well. but during the first hour
the railroad shares and some of the
more active speculative favorites gave
4 ground. The selling movement. how
ever. did not roach very large proper.
tions. but was confined largely to the
more timid traders who were reluctant
ABOUT carrying very large commitments
over the double holiday. When this
pfoht taking runs its course. the mar
ket drifted into a narrow trading area.
strength of domestic issues. particu-
Iarly railroad mortgages. featured the
relatively light dealings in bonds. For
eign Issues were virtually neglected. n
decline of | point in Zurich ss being
the only noteworthy features.
In the railroad list, Erie prior lien
4s made the best showing, registering
gain of IA points. St. faul con-
OF large fractions were made by 81
Paul convertible and refunding 4l2s,
Chesapeake and Ohio convertible IS.
Central Of Georgia Consolidated IS.
Chicago and Alton 3s. Seaboard re-
funding IS and Consolidated 6s. New
Haven Gs. Atchison As. Norfolk and
Western convertible 6s and Baltimore
and Ohio As. Slight losses were shown
by St. Paul general Alps and New
Haven convertible As Of 1888. Liberty
bonds were slightly reacttonary.
If the little stock ticker can still
be regarded as an nfallible barometer
= -
Is plunging headong into what econ.
omists are pleased to call n period of
secondary initiation. In fact. presence
of such symptoms are frankly admitted
by conservative banking interests. This
means. of course. period Of big buSl-
ness ahead for all classes Of industry,
and, in turn, huge earnings for the
transportation companies which will
carry the raw and finished material.
Whether another speculative orgy as
witnessed during the war years will
develop is problematical. but like all
diseases of virulent contagious type
there are no reliable means of meas
uring or sounding the possibilities Of
Its ramitiCations.
Another question is the future rela-
tionship Of this well-detined coming
prosperity in business 70 the stock
market. To those who fix their de-
ductionS from the spectacle of rising
values the market of the current week
offered wide avenue of imaginative
possibilities. Nearly four score of list
ed stocks, representing about twenty
five distinct industries. achieved new
high records for the year. This was
accomplished in the face Of unfavor-
able tendencies abroad. and in face Of
abor disputes threatening 70 disrupt the
al .{n1 Nr,l1
however. for some time past. has work
ed quietly and consistently on the
theory these disturbances would be ul-
timately settled without figuring upon
the terms. That side Of the question
did not seem to bother those directing
the constructive campaign. as they were
looking only at the side when the inter-
ruption of the industrial prosperity
would be removed.
Having pushed market values almost
steadily upward for over twelve months
despite AL forms of opposing condi
stions and circumstances. prompted oS-
tensibly on the fixed idea Of a general
revival OF prosperity was imminent
F,re is growing c0nyiction among
recognized competent observers of the
high peak of market values having dis
counted much Of the reconstruction ac-
complished, 1t is only fair 70 state,
however. far larger number. either
influenced by blind enthusiasm or abil. .
ty to look deeper in the future profess
TO md present convincing signs which,
indicate prolonged period of bolster.
ous speculation and exciting advancing
prices. There is little doubt a muct
higher level of security values will b,
attained when Concret" testimony. II
form of enlarged earnings, is obtain,
able. thereby permitting restoration o
dividend distributions which were :,
drasrically revised as a result of III,
business depression Of 1920 and 1921
The fact that must be conttnuousl,
borne in mind from point of safet,
Is whether or not the tremendous ris,
In security values from the ahnorna
low level Of last year has rot our,
distanced the business improvement.