The Washington times., 1924-06-14
STRONG
DURING PAST
WEEK
Both Activity and Buoyancy
Is Best Since
May 4
BY w. s. COUSINS.
international News Service Financial
Editor.

By w. 8. COUSINS.
international News Service Financial
Editor.
NEW York, June IA more
cheerful tone prevailed in the Wall
Street speculative district this week,
and both activity and general buoy
ance the stock list gave a better
account Of itself than in any SINH.
lar period since the first of Nav.
To those with bullish inclinations
the action of the railroad shares
was particularly pleasing, many of
the active railroad stocks pushing
through to new high price levels
for the year on what seemed to be
the best kind of investment buying.
Low Money Rate.
The overflow of money and credit,
as emphasized by the second reduo-
ton in the rediscount rate of the
Federal reserve bank of New York,
drew particular emphasis to the
better graie of investment stocks,
many of which, it is clearly recog.
nized, have been selling far out of
line as the money conditions. Cow
ing of shorts. operations of bullish
pools and return to the stock mar
ket Of many small-traders who have
been conspicuous for their absence
since the first of March, helped to
swell the buying power Of the mar
ket. In addition, the switching Of
q number OF the big commission
houses from the bearish to the bull.
ish position relieved selling pres
sure from number Of stocks that
have been hard hit of late, and
brought renewal Of buying demand
for these issues.
Rails Strong.
Railroad consultations, actual and
prospective, formed the basis for a
broad market in standard railroad
shares, combined also with heavy
transactions in the stock of COM
panies affected by the probable
mergers. The announcement of the
acquisition of the Ell Paso and
southwestern by the Southern Pa.
cific lines, and further discussion
OF the linking up of a number of
Western and id-Western systems.
Including Missouri Pacific. Rock
Island. etc. was sufficient motivs
Tor hasty buying Of these stocks.
which responded by rapid advance
to new high price levels. Missouri
Pacific preferred added four poinls
more to its four-point rise of last
week ana sold into new high ground.
southern Pacific. Western Mary
lano. Seaboard Air Line, New Haven
ana St. Paul also figured prominent
~ In the up-swing of prices.
Where was little difference. II
any, IN the economic factors affect.
ing the stock market this week AZ
contrasted with the last few weeks.
The declIre in industrial producrion
and forward orders was as pro-
nounced as heretofore, and the fan
ing OF In mercantile business en-
pnasized the seriousness of the tenn.
porary depression through which
the country Is passing. The month";
~ report of forward business of the
United States Steel Corporation
showed a decline of $50, 900 tons as
compared with a month ago. and
revealed a total, forward tonnage
only half as great as at the same
time last year. '"e
But Wall street and the sneculo.
1--WE community mas ALWAYS cIunv
10 the theory that the stock mar.
Ket always discounts future c"n.
dltions a few months in advance of
their actual happening, and the i'm
presslon has been growing thai
the bottom Of the decline has haan
reached and that IMPROVEMENT in
the near future will be emnhatic
me developments at the CIeveIar M
convention supported, that viaYv
particularly the emphasis on tbs
REDUCTION OF taxes and closer 90.
legislation. anu
Industrial stocks, though NOT ~
actlve as the rails and specia It;os
made corresponding response IN ths
more optimistic feeling In the
street and prices were GENERALLY ~.
clined higher. IA