Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-02-13
TRADE LACKS V|GOR
I. OF 1926 FORECASTS
Profit Margins Low-U. S.
Suit Checks Mergers-ioan
furry Subsidies.
BIZ STUART p. WEST.
Special Dispatch TO The Star.

NEW YORK, February 13.-The
uncertain price changes in the stock
market Of the last week are in keeping
with the view that this is really wait
Ing market. Wide fluctuations have &C.
CURED in highly speculative indus
trial shares, but they have had little
influence upon the main body of the
list, in which the disposition has been
to hold around the present level with
out attempting much in the way Of
fresh initiative IN either direction.
Settlement Of the coal strike over
tho Lincoln birthday holiday came as
a pleasant surprise to Wall Street.
The action Of tho coal-carrying rail-
roads and the anthracite stocks in
Thursdays market had anticipated
an early agreement between mine
owners and union representatives.
The agreement will be submitted to
the tri-district convention for ap-
prevail, after which a contract will be
formally executed by both parties.
Commodity Prices Still Down.
There is no question that business
Developments during the last six
weeks have not come up to the san
guine predictions at the outset Of the
year. In fact Wall Street and the
commercial community have had an
other lesson on the subject of taking
too seriously year end reviews and
interviews from the heads Of big bust
ness which subsequent events have
proved altogether too optimistic. Too
much attention has been paid to the
evidences OF large consumption. such
as the weekly railway tonnage figures
and the data on the distributive trade
Not enough emphasis has been laid
lr,rIy y,rfNoa q
which much Of this business is being
done.
In the steel industry the price
average has beer steadily going down.
1t is lower than 1t was during the
greater part Of 1925, and 1t is much
below what 1t was two years ago.
According to Dun's review each week
OF the last four has shown a decline
in wholesale quotations. Thirty -f1ve
Of the last weeks total changes, out
Of IS. have been downward.
The high cost Of labor is, Of course,
the main factor making for high pro-
which experience has demonstrated
cannot easily be corrected. The sec
ond most important item is fuel. and
this has been advanced very consider
ably by the anthracite strike. Cot
ton goods manufacturers are unable
to get advantage out of the low prices
OF the cotton staple. because they can
not advance their own prices and be
sure Of holding their market.
Loan FURRY Subsidies.
A good deal Of stir was made over
the stock exchange report on broker
age loans. The total Of $s.5l3, 900, 900
looked high in the light OF previous
estimates. But 1t was quickly ap-
preciated that these estimates did not
take in the syndicate loans-that is
the loans based upon unsold portions
Of recent offerings. Also. as the presi.
dent Of the exchange pointed out. new
stock listing had increased 70 per cent
from the outset Of 1919 and new bond
listings 20 per cent.
The market soon forgot about the
loan figures. and the decline in money
rates toward the end Of the week was
accepted as reassurfng. 1t is essen
TALLY a market Of special movements
for special causes, and the indica-
lions are that it will continue in this
way for a while TO come.
Copyright. 19a6.l