The Washington times., 1924-08-02
TREND
SHOWN ALL
WEEK
Wall Street Convinced For
ward Movement Il Fore
cast 81 Business Revival
by w. s. Cousins,
International News Gatrfea.

by w. 8. Cousins,
International News gseriee.
NEW YORK, Aug. with only
occasional pauses for profit taking
and consolidation. the principal
speculative markets continued their
forward movements this week. In
contrast to the two preceding
weeks, major attention this week {
was concentrated on the stock
market where the leading railroad
Ind industrial shares spurted brisk
~ to new high prices for the year
lnder the stimulus OF increased
TOOL activity and broader participa.
ion in the stock market By outside
raiders.
Prices Climb.
Wall street seems convinced that
the forward movement IN stock
prices, which has been running e.
most uninterruptedly since the
first Of June, ii an accurate fore
cast of a revival of business and
industry few months hence and
conservative banking and business
leaders all over the country concur
lin this view Of the situation. The
rise in averages" to a point almost
equal to the level OF the 1920 bull
market Is evidence to the specula-
tive community that the long
awaited forward movement is "oil.
and wall street Is full OF rtInorg
Of the discmofiture Of sold out bulls
and misguided bears heavily short
Of the market.
Steel and Oils Up.
The steel and oil industries were
prominently before the speculative
community this week because Of
DEVELOPMENTS iii the industries as
whole, while the railroad stocks
were kent in the limelight chiefly
because Of expected announcements
Of important mergers linking UP
strategic railroad systems. Stimuli.
taneously with the declaration Of
another extra dividend on the com
mon stock OF the United States
Steel Corporation. the directors
issued an imposing earnings state
ment for the second quarter, steel
trade Journals reported an increase
in forward orders and operating
rate OF important steel concerns
and Judge Gary confirmed the
statement that steel business since
July I, had shown a fair increase.
Developments in ether lines Of
domestic industry were mostly con-
structive. Copper metal continued
its upward price movement; Cen
eral commodity prices moved up
into a higher range; prominent IN
dustries like automobile manufnc-
turing showed fairly satisfactory
returns with the Studebaker cor
poration continuing its regular
dividend and even with curtailment
in the first six months of the year
earning more than double dividend
requirements.
Stocks BuOyant.
Stock market leaders, like q. 8.
Steel American Can, Baldwin. New
York Central, Standard Oil Of New
Jersey, Pan American. etc, re-
sumed their place at the head II
the forward movement this week
and their buoyancy no doubt served
as an excellent advertisement Tor
the sharp rally in prices. That
public participation is larger IL
shown by the succession Of million
share trading days and the increase
in brokers loans. 1t is also sig
nificant that the market easily alb.
sorbed the heavy profit taking
district and each reaction was the
signal for the beginning Of new
forward movement.
Rail Merger Rumored.,
The so-calIed Van Sweringen Rail-
road stocks. including Nickel Plate,
Chesapeake and Ohio, Erie and
Pere Marquette, continued to enjoy
the largest amount of speculative
attention, all of these issues going
into new high price ground for 1924
as bidding for the stocks became
more and more urgent. The Van
Sweringen brothers have been IN
conference this week with powerful
railroad bankers and executives, and
it is believed that an announcement
of the definite plan OF the mercer
will soon be forthcoming. High.
priced dividend rails like Atlantic
Coast Line, New York Central. etc.
made good market records this
week.
The moderate increase In redis-
counts In the Federal Reserve
Banks is taken as a fOre-runncr
of a gradual expansion in CONNER
ciaI borrowing and hence In bust.
ness expansion this fail. This WIN
not diminish the supply OF specu.
1ative funds, but It will provide
better use for funds now seeItinr
employment in short term note
and investment bonds, and produce
a more healthy condition IN Tie
country as a whole. Reports from
the great agricultural districts are
gratifying, the rise in prices az
food products having changed thI
oifv1o finn ny,f3,.n1,r co.. A., 1,-t1. ~