The Washington times., 1924-04-21
IS
DIVIDED IN
WALL ST.
Rally Of Prices Of IndustrlaIs,
After Bear Attacks. In
tensifIes Discussion.
BY w. 8. COUSINS.
Copyright, 1894, BY Cosmopolitan
NewR gePviea-

NEW YORK, April 21.-The i'm
mediate future Of the stock market
IL always a fruitful topic Of dis
cussion in Wall street. and there
has probably been no time in the
last two or three years when
speculative sentiment has been 50
sharply divided as today. The inter
mittent rally of prices of indus
trials. after successive bearish at
tacks, serves only to intensity dis
cussion.
Bears Active.
There can be no doubt Of the i'm
presstve triumph Of the bears in the
last six neutrality-suspicious. tell the
story. But there is a great differ
enee of opinion among Wall street
experts whose memory goes back
from twenty to forty yeay8, whether
the trend in the stock market IL
accurately portraying OF forecast.
Ing business and industrial develop
ments, or reliable business senti-
ment. In the absence of aggressive
buying power professional operators
can, and do, force stock prices far
below real value; and even bullish
pools, prior to forward movements
In favorites, bear" stocks in order
to buy as cheaply as possible.
Those who look for higher stock
prices make the claim that slow
development Of spring trade has
been fully discounted; that indus
trial production and advance orders
are, with few exceptions, at a much
higher rate than this time last
year; that seasonal buying will soon
be upon the markets. in large
volume, reflecting depleted condition
Of commodity shelves; that normal
business will prevail all summer and
moderate boom ushered in this
tall; and that European conditions
will surely improve.
Stocks Too High.
While coneeding the accuracy Of
some Of these statements, the bears
maintain that prices of many stocks
are still too high; that some indus
tries, notably textiles and automo-
bile manufacturers, are not fulfill
ing expectations, that general bust
ness 1s suhneFnlal, and that pnliti-
cal uncertainty in nresidential
year is bound to have an unfavor-
able Influence on stock trading. if
not on. prices Of stocks traded in.
Another factor with which the
market has been ccntending since
1921 Is the activity Of snlSIl traders
on the markets short side. Twenty
years ago the odd-lot trader was
almost unanimously bullish, ana op-
Grated only when he could buy for
a rise. Arrayed against him was
the professional bear, who profitably
spent his time cunning for soft
spots" Observation of the meth
DDS Of these professionals. and fire..
quent disappointment ever the cut
come Of bullish commitments, grad
ually helped to swing small traders
to the other side Of the market; and
many commission houses now re-
port the largest short interest, for
the general public. In history. This
10 a technical factor which operates
regardless Of Industrial develop.
mauta.
Turning to Industrial conditions,
there was never any ground for
hoping for q business boom this
spring, and therefore there should
be no great disappointment at its
nonappearance. Political develop
Haents are disgusting, though Con.
gress has been known to adjourn
without formulating the construc.
tive legislation expected of It. Com.
modify prices are unsteady, Con.
structive factors far outweigh un.
favorable ones, and American busl.
ness has not forgotten lessons
learned In past reactionaFy periods.