The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-03-30
RISE IN MARKET
LOOKED FOR
IN n. !. .
Speculative Sentiment Is Inns
proved by Sharp Reaction
in Prices.
ByW. s. COUSINS,
(copyright. 1923: by cosmopolitan

News Service.1
NEW YORK, March 30.-Specula-
tive. sentiment has been improved
by the sharp reaction In prices dur
ing the past two active sessions OF
the stock market and resumption
Of the rise = on a. broad scale Is
looked for by, perhaps a majority OF
those closely following movements
today of prices on the big board.
A number Of the. leading commits
sion houses report short selling has
been conducted on a fairly heavy
scale Of late, and that the short in
terest at present is as large as at
any time this year. There are
considerable number Of professional
traders who long ago concluded
prices were as high ais they are
likely to go on this movement and
have been backing up their con.
illusions by quite liberal short sell
ing.
top" for more than a month, and
If they are strong enough to con-
tinue these operations, they may
ultimately strike their goal. But
he would be q bold prophet who.
would say that prices have reached
their, top.
The .Piggly-Wiggly incident has
suggested the inadvisability Of list
ing for trading. on the stock ex..
change, the stock of companies Of
small capitalization. which. are more
or less susceptible to manipulation
and to the formation Of corners.
The theory Of the stock exchange:
is that all properly rated stocks
should be entitled to a free market
and it is obviously impossible for
the authorities to keep their eyes
peeled for every instance OF
irregular or unfair manipulation.
When the bears launched their
drive against Piggy Wiggly, it was
not that, they loved Mr.. Saunders
less but that they thought they saw
an opportunity % to- make some
money. Had, they succeeded in
pounding the stock, downward, even
temporarily, they would have
profited by the operation.
Critics of the stock exchange
governors raise the point they are
always ready to protect the bears
who "sell themselves into a pocket"
and records show that they have
in nearly every instance ruled off a
stock that has been manipulated
against the shorts. How much
better it would be II the standard
of listing was such that corners
would be much more difficult to
secure.
Wall Street has been so accus-
toned to per cent call money dur
ing the last couple of years that
occasional per cent flurries al
ways cause CONSERVATION. Records
show that from February % to the
latter part of September last, year,
the. call rate did not touch 6 per
cent, whereas in the current year
there have been six different days
since the middle of February on
which the per cent. rate has APP
piled. It makes, little difference to
the customers OF the commission
house, for. they are generally
charged per cent no matter what
the posted rates may be-and in a
s per cent call market their charges
are fractionally above that rate.
An important conference OF rail-
road executives in this city next
week will consider the transporta-
ton act. There are three main
points upon which critics base
their disapprova1. These are: The
provision requiring carriers to give
up to a government fund one-half
of their excess earnings over s
per cent on valuations; the section
establishing the labor board, and
the section providing for group
ing or consultations Of the so-called
weak" and Strong roads.