The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-12-13
FAIL. To
HALT RISING
| MARKE |
Bullish Movement Which Be-
gan Month Ago Has Slight
Set Back This Week
BY w. s. COUSINS,
lnternatianal News seryiee Financial

AnternAeinnal News Service Financial
NEW YORK, Dec. 1s.-The most
severe decline in stock prices since
the upward movement began on
November 5 took place this week.
with heavy selling Of stocks on
Wednesday and Thursday.
In fact, this may be called the
only real setback the list has re.
cetved in five weeks of unusually
large trading, IN more than half of
the fulI session of which transact
tons exceeded 1000 900 shares. The
upward surge Of prices, stopping
not for prOfit-taking or ''consolldil-
ton has caused some concern in
speculative quarters, where, a set
back was expected almost daily.
Profit Taking.
The atmosphere Of Wall Street
was heavily surcharged with bearish
statements concerning the financial
and business outlook on Thursday
e. stocks were crowded for sale, and
prices in leading stocks were lie.
treating with more confusion than
has been seen in the stock ma,Ket
In g month or more.
The bears were blamed for the
circulation of false reports, particu-
lar the runlors that the directors
OF the Federal Reserve Bank would
raise the II discount rate of the
institution at their meeting ON
Thursday. No such action was
!, taken, and it would have been IN
natural IL it had been, since Janu.
airy Is the month of easy money
when investment funds are seeking
employment, and bank deposits are
swollen to, large proportions.
1t Is the best opinion in Wall
Street, however, that the bears have
not been very active in recent
weeks, and. have mad less to do
with this weeks reaction than is
popularity believed. The desire for
protit-taking, particularly by the
professional element was keen, and
became more marked as stock prices
tailed to continue their spectacular
upward movements.
Anxious to Buy
There is another broadly ac.
cepted theory in Wall Street, which
is that sold out bulls, who parted
with their stocks in the first flush |
of the upward movement in No |
vomher and who have been COM |
PEELED to stand by and observe the |
skyrocketing OF stocks which stood |
motionless In their hands for |
months and perhaps years, have
been anxious to bring about a re-
action TO enable them to buy back |
their favorite stocks.
1t is certain that there were buy.
Ing orders aplenty Just under the |
market" and this cushion of buy.
ing support was always sufficient
TO turn the tide in the breaks in |
prices.
The brilliant rise of sterling ex.l
Change, the unusually favorable
monthly forward tonnage report of |
the United States Steel Corporation,
the rise of lead and zinc prices
to the high Of the year and the
stiffening of copper prices; buoy
ancy in grain markets; higher
prices for pig iron and manufac-
tured steel products, abundance of
money, even If call loans did tenn !
porarily hit the per cent rate,
and the firner market for refined
Of! products were the main outside |
factors affecting speculative senti-
ment.
Oils An Exception !
Prices of all but the oil stocks
were marked up in the first two |
sessions of the week. The copper
and motor stocks led off in the
rally on Monday but were soon
joined by the steel, equipment.
shipping, railroad and speciality
stocks in a grand scramble toll
reach higher price levels. Buying !
for investment was an important
feature of the week and II re. |
quired only a small volume of pur
chasing of stocks like American
Telephone and Telegraph, American
Locomotive and the various indus.
trial and railroad dividend stocks
and preferred stocks to send prices
to the best levels of the, year.
Heaviness in the oil stocks. MANY
OF which retraced their steps to
near the low levels of the year.
followed the wholesale liquidation
OF stocks of independent and Stand.
ard on companies.
sUneasiness In the oil industry.
with continued over production and
rumors that the Prairie OIL and
Gas Company, one Of the largest
refining units in the. country would
either reduce or discontinue its
dividend, have been reflected in
the gradual elimination OF the oil
stocks as a popular inv estment and
speculative medium.