The Washington times., 1925-01-17
PROFIT TAKING
Its RISING
MARKET
Grain Markets Share Interest
With Stocks as Wheat
Reaches New High Level
BY w. s. COUSINS.
international News Service.

NEW YORK, Jan. 17.--PriCes or
speculative stocks this week showed
| the inevitable effect Of profit TAX
ing, professional activity and the
natural weakening OF the "techni
cal position" Of the market by ex-
tended buying with limited reduc'
| tons
There was nothing in industrial
and financial developments to Gre
ate uneasiness In the security
market. On the other hand, trad
| ers who were anxious to convert
napef profits into cash had an ex-
ceilent basis for such operations In
the increase in steel operations to
05 per cent, the advance In gas0-
| line prices for the first time since
early in December, and the I'M
provement in the reserve position
Of the Federal Reserve banks.
THE grain markets shared with
the stock market in speculative In
| tereat this week. The rapid rise
Of wheat prices to around $1.S8
| bushel. the highest in forty years.
outside Of the war period, was IN
/ line with expert predictions, and
the direct result Of short crops
| and heavy consumption In other
parts OF the. world.
The oil stocks were made the lead
/ ers III the forward movement In the
stock market In the early part OF
the week. Under sponsorship OF pow
erfrI financial interests, generally
i e tt,. a1I- ia satl1e standard Oil
Crowd, and the Morgan banking
i house. Marland Oil was pushed for
ward vigorously to the highest lev-
/ els since 1928, in the lead OF the
i most enthusiastic movement IN the
Oh stocks that has been seen IN
many 3, day. "A number OF the oil
/ companies which have been unpOpu-
i lar with spectators in recent yeas
were reported to be liberal benen-
| ciaries Of the newly discovered
Worthann pool, in Texas, and their
stocks forged to the front. In con-
trast to the dismal picture Of crude
Toll Over-production which was dis
j played during the whole Of last
year, bulls in oil stocks sounded the
loud pedal on high consumption Of
gasoline, heavy Withdrawals Of crude
i and refined oils from storage, early
i exhaustion OF the Workman pool.
i high potential consumption in 1928
and ever thereafter, and finally the
weekend boosting Of gasoline prices,
and traders, big and small. tumbied
over themselves to buy oil stocks.
Il The reactions Of Thursday and
i Wednesday were due principally to
officiating, encouraged by the big
i commission houses in special WiroSs
and confidential letters to their GUS
toners. Stocks were brought to the
market in fairly heavy quantity, the
bears helping matters along by short
selling In the industrial leaders.
Prices dropped. but not In confusion.
There were buying orders in good
/ the prevailing level, while bulliSh
pools were on hand to prevent the
decentralization OF their favOrite
stocks.
/ The failure OF the average prices
to break through heir previous
high levels was hailed 20 be an un-
favorable sign to the chart traders,
and this induced g. waiting policy
l on & large body Of traders who
might otherwise have been more &C
| tive in the market. There was an
absence Of market pyrotechnics in
speciality stocks.
/ The motor stocks we're generally
strong and active, with General
| Motors continuing the movement
/ which started in the middle of last
week. Nash Motors also continued
i its sensational advances to higher
i price levels, It's jump to $50 repre-
scented a gain Of 30 points for the
week. Rails were steady, with the
exception OF st. Paul. which re.
Elected the recurrence of receiver.
ship talk and the appointment of en-.
i gineers to make an independent
/ examination OF the road in order to
evolve q plan for Srefunding the s4
/ per cent bonds due June /. It was
felt that such steps should have
been taken long ago. Equipment
stocks were strong, coppers fairly
steady, sugars irregular.