Evening star., 1925-08-23
BREADTH OF THE STOCK MARKET
BROUGHT ABOUT BY NEW FACTORS
of Money, Increased Population, More
Securities and Disposition to Aid Big Busi-
ness Among Them.

willard they watch their steps all
of the time.
The buying power of the well-to-do
is increased to a much greater extent
than it was in the days before the big
war, and they are exercising this
power materially. Earning power of
the average man has doubled His
expenses have doubled, too, in many
cases, but there is still large vol
ume Of money available for margins.
1t also is true that a very much
greater percentage of Wall Street pur
chases are paid for outright today
than ever before.
The panic, spreading with appalling
results, smashing stocks and break
Ing banks, is a thing Of the forgotten
past, although there may be severe
declines in this or that group of
stocks, but the panic in all its terror,
the kind that used to send Secretaries
of the Treasury hurrying to New
York and frequently to loaning mil
lions to bankers of that city, died with
the incoming Of the Federal Reserve
system Lawmakers should be very
careful how they tinker with that Won
derful measure that was responsible
for financing the war and, with 1t,
helping the great boom movement In
business generally.
New Methods of Doing Business.
New methods of doing business may
be credited in large part for the con
tinued ease of money, one of the
greatest factors in the Stock Market
and also in general business. OF these
new methods more anon, as II Is
really another story.
For months money has been so
plentiful that the Federal Reserve
Banks and the rank and file of ma
tional and other fiscal institutions
have found it difficult to keep their
cash fully employed-a necessity to
good profit.
The cutting of taxes has been a
great help to large corporations, and
they have been able to make more
generous distributions to their share
holders, adding to the strength of the
market.
The promise of further excess and
normal income tax reduction is eX-
tremely encouraging, and is another
evidence of the desire of this ad-
ministration to boom big business, and
little business as well.
Much satisfaction is found in the
general belief that the teeth of the
Federal Trade Commission will not
threaten much longer. In other
words, that they have been pulled
and that the commission. which bust
ness ever disliked, might be legislated
out of existence. Sentiment is said
to favor abolition of its endless in
vestigations.
Utilities Out of the Dumps.
As a general rule public utility
shares. deep in the dumps during the
war, have recovered and have made
wonderful progress toward stability
and higher prices. Power stocks, in
cluding those of practically all develop
ments. are leaders in advances,
They have risen to such a point that
signals of danger have been evident
from brokers' Offices and the predic-
ton made that the reaction would be
in the nature of a smash.
Other Markets Strong.
In other markets the same degree of
activity, in lesser degree has been
witnessed and the upward trend has
been more or less genuine.
Right here in Washington we have
had a number of sensational gains IN
shares.
Railway common has paced all local
shares in its sensational rise 10 1853
with Il 90 points dividend, in addition
to regular distribution to be consider
ed, which would make the gain much
more.
The typesetters, bank stocks and
bonds of all descriptions have made
good gains.
1t has been the broadest kind of a
neutrality-suspicious. the end is not yet.
perhaps the reaction past due may de-
velop, but no one fears it in the way
they used to. when there was less
buying support to the market. now
buyers appear in one group of stocks,
with practically every show of weak
ness in another.
No one breads such a thing as a
smash-and yet II may come.