Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-15
BY STUART r. WEST
Special Dispatch to Tho Star.


NEW YORK, January 1.-THE
week in stocks has been characterized
largely by small, irregular price
changes. A number of advances have
occurred. some OF them striking, in
individual shares. But these advances
nave been due to special causes and
have had no significance for the gen.
eral list.
1t is astonishing, making compari-
sons with week ago, how many
stocks have either not budged or have
confined their changes to small frac-
tons. This means that the main body
mas been getting nowhere. At times
some of the rails have looked well, at
other times the oils. But where par
ticular stocks have gone up they have
had no influence upon other quarters.
What Is to be the sequel of this
deadlock? Wall Street Is divided in
opinion, but is inclined to be hopeful
rather than otherwise. This is be-
cause while there is nothing to en-.
thuse about in outside conditions and
while favorable money developments
fall absolutely fiat, the market posi-
ton Is better than it was a year ago.
Then Wall Street was getting ready
to pay by it's Spring declines for it's
excuses OF the previous Autumn.
New Incentive Needed.
This Is one side Of the picture. The
other side Is that the favorable fea-
lures have been fully exposed to
view for the last year SO that there
is no novelty to them. An upward
movement must be based upon some
thing fresh, upon something which
will make a new and powerful appeal
to sentiment. A new campaign would
~ m hn Nd
embers Of the 1925 speculation, and
yet what Is there in the situation now
that offers anything essentially differ
ent by comparison?
If Wall Street trading refuses to re-
Spond to q 4 per cent call money rate
and a Az per cent time money rate
the lowest since last Summer-if 1t
cannot be stimulated by the biggest
and strongest bond market in recent
years, IL 1t is Indifferent to every piece
Of good news that comes out in the
shape of dividend increases and fine
earnings statements, then 1t Is hard to
see just what is going to stir it up.
Oils and Rails Watched.
Some people think the oil shares,
If they ever get really started, will
lead the way out. So far such in
creased activity and gains as have
occurred in this group have not been
factor elsewhere. A sensational
episode like the rise in Lehigh Val
ley can bring about certain amount
of sympathetic buying in other rails.
But the effect is not lasting. Most
railway shares look high on the basis
of interest yields and likewise con-
sidering the fact that railroad earn
ings some time since began to COM
1925. There is nothing any longer in
railway statements from month to
month or in the carloading figures
to afford inspiration.
Bond prices averaged higher than
at any time since 1913. The invest
ment situation is more interesting
than the speculative because there Is
a definite motive back of 1t. This
motive is the competition on the part
of owners of capital to get their
funds employed before the money
market works still lower, as many
good judges think it will. Nearly
all classes of bonds have partici
pated in the rise The fear that the
money valuation may further dete-
riorate Is the paramount considera-
ton. The present advance in bonds
is not to be thought of as a move
ment involving overhaste. But 1t
does contemplate the possibility OF
high grade investments being pushed
forward to new high levels and Of
this entailing a corresponding eleva-
ton in other groups.
Commodity Level Sound.
Those who We're looking for general
business to start forward again with
the new year have SO far been dis
appointed. But there is no question