Evening star., 1925-05-23
Public Again Buying Stocks
As Many Issues Go Higher
Lo'O Money, Dividends, Trade Reports
and Rise in Commodity Prices
among Weeks Big Features.

increases are expected. The prospect
or railway mergers continues to make
some OF the medium and low priced
rail shares favorites. Finally, the very
easy money conditions have had their
logical effect in bringing new buying
into the higher grade of dividend pay
ers, both in the railway section and
among the industrials.
Commodity Prices Harden.
All these elements have told in IA
Vor or higher prices, and, AS pointed
out a week ago, constitute a more
sold background for the present for
ward swing than any that existed last
Winter. when the market was so en-
tirely dominated by speculation.
outside industry also Is in better
shape than 1t was four months ago.
Then the commodity price structure
was wobbling and production had been
carried too far. Now the proper re-
adjustment has taken place. Output
OF the mills and factories has been
reduced In keeping with consumption,
founded upon demands for immediate
needs only. Prices came down over
three months without interruption
Within the last fortnight they have
besun to harden, and there is very
little doubt that, in the majority of
which buyers feel confidence again.
May Figures Important.
The April figures on the foreign
trade proved nothing because gold
payments were not resumed until
April 28. 1t will not be until the May
returns appear toward the middle of
June that proper conclusions can be
drawn.
In the meantime the suggestion NAV
he made that while the increased pur-
chasing power of the British pound
will naturally stimulate imports, the
ability to lay hold at lower costs of a
larger quantity of foreign raw mate
rials will help the export movement.
Francs Again Decline.
French francs took another down
ward turn during the week and were
not far away. at their bottom figures,
from the seasons extreme low. This
does not signify disapproval of the
financial policies announced by the
new French cabinet. On the con-
trary. in banking circles these are
regarded as the sanest Of any so far
proposed. But the uncertainty arises
as to how the French people will
treat the project for heavily increased
taxes.
finances Is that too many misleadin
statements have been made during
the last three years from high quar-.
ters.
Federal Reserve Ratio Up.
The remarkable part about the
financial situation at home is that
with stock prices at a new high av
erage and with daily transactions at
the 1000. .000-share mark again. the
4
New York has risen to the highest
of the year. This demonstrates that
the member banks have been able to
finance the increased activities of Wall
Street without recourse to the redis
count facilities of the Federal Reserve
institutions.
This Is the stage of the year when
weather conditions are paramount as
an influence in the commodity mar
kets. The Winter wheat crop of the
United States is evidently going to be
very short as compared with the 10
year mean, but this shortage may be
offset later on by the enlargement OF
the Canadian harvest, which was alb
normally poor a year ago, and by a
better Spring wheat yield in this
country.
Cotton Crop to be Large.
The cotton trade Is looking forward
to another large production and con.
seQuently there is no incentive. any
more than there has been for the
last four months, to recovery. On
the other hand, the fall of 10 cents a
pound or more in prices. as com
pared with a year ago, has caused
an improvement in mill demand and
this is holding the market steady.
Copyright, 1925.)