The Washington times., 1924-03-22
STOCKS DISPLAY
REACT|0NARY
TENDENCY
Bears Active All Week, Fore
ing General Average Of
Prices Lower.
By w. s. COUSINS.
copyright, 1924, by Cosmopolitan
NoNv0 CnHukna


News Service.)
NEW YORK, March ga re-
dictionary tendency was apparent
In every session Of the stock
market this week: and. while spas.
donnie rallies in the oils and rails,
and small number of the high
priced industrials, helped to give the
market an appearance Of strength
and stability, the bears were in the
ascendancy, and forced the general
average Of prices lower.
The market gave additional eVi.
dence Of the discrimination of
traders in making selections among
various groups of stocks, for, while
some issues established new high
prices for the year, others fell
disconsolately to the lowest levels in
q year or more. Railroad stocks,
under leadership or Norfolk and
Western. Southern Railway, New
Orleans Texas and Mexico, and
the Wabash stocks, were easily
leaders in the upward movement,
while steel, motor, tire and rubber,
chemical and silk stocks exhibited
heaviness and inability to hold their
position in the face Of bearish at.
lacks.
Oil Stocks Strong.
The oil stocks barely held their
own, despite the marked improve
ment in the technical position both
Of the industry and Of the listed
leading stocks. Reduction Of Pan
American dividends was without
special effect on oil securities,
Doheny stocks advancing rather
than declining on the announcement
Monday. In the long decline from
80 to "A over a twelve-months'
period, Pan American stock had
largely discounted the drop in earn
ings last year, though 1t is not so
easy to say what would have hap
pened had the dividend been passed.
Other oil companies reflected low
earnings for 1928 consequent on
heavy decline in crude oil prices,
but those fortunate enough to build
up reserve supply are reaping the
benefits of an enormous increase in
inventory values.
Professional Wall Street-and this
includes a number Of high-pressure
professionals now operating from
the Florida summer resorts-seems
heavily committed to the bear side,
and consequently it IL not surprising
to find the speculative district sur
charged with bearish propaganda.
Outlook Optimistic.
Questions raised about the status
Of the automobile industry brought
significant statements from presi.
dents of prominent motor manu-
featuring concerns. Leaders Of the
steel industry declare there is moth
ing wrong, and railroad heads are
positive in their predictions Of con-
tinued prosperity for carrier sys-
TENS. Then the legislative fiasco at
Washington was emphasized, and
the unWillingness of Congress to CO.
operate with business was stressed
from the fact that the House,
which found 1t impossible to pass a
tax measure, was, nevertheless,
ready to jam through the bonus
bill in forty minutes.
The plethora Of money in New
York and other financial centers is
not a favorable index Of business
and Industrial conditions. Low call
money rates theoretically help stock
market speculation, by reducing car
rying charges on margin accounts.
But the piling up of idle funds to
such an extent that banks are
scrambling for short-term notes and
Government paper, IN order to earn
board and keep" for deposits on
which they pay from 2 to per
cent interest, clearly indicates a
lack Of use for these funds. It is
recognized that the call money mar
ket is not an accurate gauge Of
money conditions, but this week wit
messed the spectacle of time money
rates below 4 per cent for the first
time since 1917.
Financial interest was again con.
centrated on foreign exchange mar.
kets, where French francs continued
spectacular gain to above cents,
the highest Of the year to date.
Sterling was strong. notwithstand-
ing heavy selling in Paris. Com
modify prices were generally de-
Elected downward, with wheat weak
and cotton fairly steady.