Evening star., 1927-04-02
BY CHARLES F. spEARE.

4 Special Dispatch to The Star.
! NEW YORK, April 2-Confused
| views as to the values of different
! classes of stocks were expressed in
| this weeks share market, where new
| high average prices in one section
contrasted with numerous new low
quotations for the year elsewhere.
| The unique experience was given
| Wall Street of seeing gilt-edged rail-
| road. Industrial and public utility
shares moving rapidly upward, at the
same time that the stocks of a con-
siderable body of industrials and one
small group of rails were rejecting
the fears of stockholders that earn
ings could not be maintained at the
1926 rate and that, therefore, divi-
dends might be jeopardized or antici-
pated distribution of profits be long
deferred.
a list of more than two score OIL
textile. fertilizer, baking, electric re-
frigerator, radio, automobile and pack
ing house stocks reveals declines rang
ing from 10 to 80 points from the
years highest. and an average decline
of about IL points. This explains why
there are such opposing opinions con-
corning the market outlook, even
when the foundation of ii appears so
strong, as is evidenced by the almost
daily advance into new price area"by
such widely held issues as United
States Steel, General Motors, Atchi.
son, Norfolk and Western and Penn.
sylvania.
The reaction on one exploring the
stock market lists, in an effort to dis
cover a definite trend in prices, is
duplicated in degree when the va
rious trade statistics are scanned in
order to obtain an idea of how busi-
ness may act throughout the remain
der of this year.
First Quarter Results Mixed.
The March quarter just ended has
been rather better than it had promis-
ed to be at the close of 1926. The
volume of trade has exceeded expecta-
tions, though profits We're not so large
as in the similar quarter year ogo. A
number of ilinourished industries have
been getting on their feet at the same
time that others have become sickly.
The iron and steel trade has shown
great vitality. Railroad carloadings
have been well in excess of other
Winter months, and are now running
between and s per cent above those
OF last March. Except for two or
three producers, the output of automo-
biies is satisfactory Weather con-
ditions throughout the country have
been more favorable to economical
railroad operations, merchandise dis
tribution,- farm work and to stimu-
latlon OF motor car demand than
normally is true
Employment generally has been
satisfactory, and the Nations wealth
has moved upward strikingly on the
basis of a high wage scale and
steadily declining commodity list
There has been no disturbing effect
OF overspeculation or oyerextensfon of
banking facilities to assist specula-
ton as there was in the first quarter
of 1926. Brokers' loans are high, but
not dangerously high, with every evi-
dence that the public which is now
expressing its investment preferences
IN the market is doing so with judg-
ment as to values rather than on
tips
Money has been abundant gold sun
plies have reached a figure that pro-
claims Americas financial supremacy,
our Government has been reducing it's
DEBT as other governments increased
theirs, and the obligations of our Gov
ernment as well as of our strongest
corporations have reached a level un.
paraileled since before the war.
Farm Situation Important Now.
This is the base on which the bust
ness structure Of the country rests
at the opening of the second quarter
or the year, a period normally de-
voted to increasing industrial and
agricultural activity. 1t is the season
when the careful observer watches
how it goes with the farmer rather
more than he concerns himself with
tire manufacturer. But the Industrial
situation meanwhile should not be liz.
i1ored. for there are serious problems
within it and number of disturbing
influences.
Undoubtedly there is overproduc.
ton in some lines of manufacture