The Washington times., 1923-08-18
SHOW
UPWARD
TREND
Stocks, Bonds, comnoditie
and Foreign Exchange Rally
During Week.
BY w: s. COUSINS,
Copyright, 1928, by Cosmopolitan
Maze GarygfNel

News SerV1cesl
NEW YORK, Aug. 1S.-The rally
in all Of the financial markets this
week was as pronounced as the
weakness that preceded It. Not
only speculative stocks. but Invest.
ment bonds, foreign exchange
grain. cotton and commodities ex-
hibited q strong upward tendency
and the bullish element In Wall
Street freely predicted the end OF
the bear market.
Taken as q whole, the markets
this week exhibited more cheerful
ness than has been seen In the big
speculative district in more than g
month. though most OF the buying
Of stocks was for the account OF
professional operators who found
the supply of floating stocks some
what limited. From reports OF
leading commission houses II APP
pears there has been comparatively
little leaning Of stock during the
last heavy decline. most OF the
shares going into the hands OF In
vestors who are holding them tor
the long pull rather than for short
profits. When the bears looked for
cheap stocks, to cover up their
commitments, they found very little
available, and were compelled to
run up the price on some OF the
market leaders four to eight points.
Reassured By Coolidge.
The markets were more disposed
to consider the effect OF good news
at home than the disturbing reports
coming over the European cables.
Chief among constructive factors
was the reassuring statement Of
President Coolidge to the press on
Monday, and the tremendous gain
in confidence which his initial acts
at Washington inspired. AS to the
European irnbroglio, II 10 felt that
the worst has been discounted. and
that conditions favorable to our
trade win develop In due time.
The weakest section Of the stock
market was In the independent oil
shares, such representative issues
as Sinclair, Marland, Cosden, Phil
Lips and Observation-Disclosures selling
at or near the lowest prices In over
O. year. That q serious situation
has developed in the oil industry,
endangering the very existence Of a
number Of the small producers, is
admitted, but leaders in the oil
business attribute the present crisis
to the hasty marketing of distress"
gasoline for which no storage facil.
tiles are available. In the rally
which featured the closing sessions
Of the week, the oil stocks were con-
spicuous, some issues advancing
more than four points.
Business Conditions Improved.
The rise Of industrial, equipment
ana a number Of the railroad stocks
had its inception in the evidences
Of improving business conditions
throughout the country and in the
general feeling that the revival In
trade and industry will replace the
slump through which 1--WE just
passed.
Inquiry among leaders Of business
in this center fails to disclose any
department of industry that Is not
planning for bigger and better
things directly ahead. More men
are being employed in practically
all lines than at the same period
last year, raw materials are used In
greater quantity, and business sen.
timent is cheerful. Coming at a
time when a large number Of spec
ulative stocks had been pounded
down to the lowest price levels In
year (some Of them in twenty
years., traders in the stock market
have taken the opportunity to buy
up such stocks as they consider
reasonably cheap.