Evening star., 1923-10-14
TRADING CONFUSED
IN ALL MARKETS
Trend of Securities and Trade
Very Difficult to Discern
Amid Present Moves.
NEW WEAK SPOTS FOUND
Bonds Appear Firmer-Better Ag-
ricultural Outlook as Grain
Prices Go Higher.
BY GEORGE II. HUGHES.

Sptcidl DlsPatch 10 Inc star
NEW YORK, October 13.-In the
present confused state of the finan-
cial markets 1t is difficult in the ex-
treme to discern the trend either of
securities or Of trade on which the
value OF securities depends.
Under the activity of professional
spectators stocks continue to sag
toward lower levels, a movement
which. this week has not been inter-
rupted by rally sudden and sharp
same professional spectators and
traders emphasize the unfavorable
aspect OF the situation, now in one
industry, and now in another.
Last week it was the seasonal de-
cline in the demand for motor cars
and the strenuous competition which
the automobile producers face upon
which stress was laid. The closing
down of the largest cotton mill In
tive of the attitude of buyers toward
advancing prices and predictions
were freely made that manufac-
turers in other lines would shortly
lind themselves confronted by SINH
lar situation.
This Weeks Special Attack
This week the attack has been
shifted to the rubber and tire trade
and to apparent depression in the
copper market. In both cases there
is some basis for the reaction. The
potential tire output does seem to
be excessive in proportion TO con-
sumption. and undoubtedly there will
be some curtailment. It is also
true that there has been a steady de-
cline in the price of copper metal.
1t has been the fashion TO explain
the situation In copper as due to the
inability of Europe to buy, an ex-
PLANTATION which fails, however, in
the case of Germany. Figures made
public this week show that Ger
United States during the eight
months ending August 81 last were
nearly l0S,000,e00 pounds. worth s17,-
100000, a larger amount than was
ers are unable to explain how these
purchases were financed, hut the
fact remains.
Future Prices PuzzIing.
1t is a question of how far these
unfavorable factors have been dis
counted in the market price of the
securities concerned. In the case Of
similar situations IS that the strong
est corporations emerge stronger
than before. Weaker competitors are
eliminated or forced to combine with
better organized corporations. 1t is
also possible that the resourcefulness
of American industry will be demon
strated in the diversifying of activi-
ties. Something of this sort is said
to be going on with the tire pro-
ducers. AS to the price of copper. il
may be expected that sooner or later
lower prices will stimulate demand.
While the stock market seems to
be undergoing progressive reaction
the losses are very small and it is
very doubtful whether there is any
considerable amount of real liquida-
tion going on. 1t must not be for
gotten that men of large wealth are
instances y TO give speculative sup
port to market when the income
tax collector takes half the profit
and leaves the speculator TO shoulder
all the loss. That leaves it to the
small investor to fill the gap and he
works very slowly.
1900 New Stockholders.
In the few securities in which he
is a factor, such as American Tele-
phone and Telegraph, the effect is
seen in a stcadying of the price. In
the case of United States Steel com
mon stock, It is interesting to note
that in the third quarter share
holders of record increased nearly
1000. Investment holdings of steel
common now total nearly so per
cent of the shares outstanding.
Turning to the bond market, the
outlook is much more cheerful. New
offerings of undoubted merit, rea-
sonably priced, meet a wide demand.
Practically all the high grade. bonds
have been firm and this applies to
libertys also. While there is great
difference of opinion about the fu-
ture of money rates, the best opinion
is that no substantial advance Is In
sight. which should make for Steadl-
ness in bonds of highest grade.
Bonds Display Strength.
More important still there has been
little weakness in speculative hands,
even when the corresponding 81 qcks
were being heavily sold. More conf
dence has been shown in the railroad
outlook, notwithstanding the failure OF
the directors of the Southern railway to
take the long -hoped-for action on q
dividend on the common stock, The
improved agricultural outlook as. evil
denced by higher prices for both wheat
and corn has in some degree allayed
fears of a successful attack on tha
transportation act in the new Con-
gress.
This matter of the commodity mar
kets is important not alone as far
as the price is concerned. 1t has a
political bearing and in the case OF
cotton the conflicting forces of short
supply and of resistance to high
prices by the ultimate consumer are
so evenly balanced that the outcome
will throw much light upon the whole