New Britain herald., 1928-04-20
BY PAUL NJ. MAZUR


 Banker, Economist, Author of
 "!Anerican Prosperity. Its
 Causes and Consequences" For NEA Service There are at least reasonable ex- plantations for the enthusiasm of Wall Street in the face of depression elsewhere.
 In the first place. the country IS fundamentally prosperous. Despite spotty conditions through the winter in several branches of industry and in certain sections of the country, and despite the fact that freight loadings are slightly behind last years, and in the face of other re- troactive statistical data of unfavor- able significance. business on the whole has been good.
 More important still. beneath the surface there has now appeared a psychological undercurrent of busl- ness optimism that is not yet defi- nitely felt on the outside and has not yet been reflected in the news paper. Wall Street has sensed it. Unemployment Not Serious Now
 Unemployment if more wide spread recent government figures indicated, is perhaps not so serious as others would have us believe, all though 1t has been definite condi- tion in the coal regions. in Detroit. to some extent in New York and other sections. But this was all an- ,icipated last fall. at least by Wall Street, so that it bears no relations to activities in that quarter now.
 The shutdown of the Ford plant last year caused a general let-do"n in the automotive field and was lm- mediately felt in many avenues or industry so, considering the things that go into the making of automobiles. Unemployment III Detroit was duplicated elsewhere.
 But Ford has resumed. and there ia undoubtedly definite upll1t throughout the whole of the auto mobile industry. It has affected the accessory trades. the steel industry, and innumerable others. Further more. agriculture seems to be on the upgrade, and over-capitalization and other postwar difficulties are being corrected by the process of time. The farmer is getting better prices.
 They say of the stock market that it is an index of futures-that good news is accompanied by sluggish market and bad news is a signal for a bullish movement. The theory is that Wall Street discounts the news long before it happens. and is already occupied with what will happen next. This may account for the present furore at time Of de- pressiye feelings elsewhere. Wall Street apparently anticipates better news ad-improvement in terms of general business volume. It per- haps senses other developments which the financial world regards as indicative of profit oppor- tunitv. Talk of mergers and consoll' dation is usually a favorable indica' tion in Wall Street, and has beer since the creation of the United States Steel Corporation.
 An Era Of Consolidation
 Mergers represent size and strength. which appeal to the Amer ican psychology. Consolidation IS forecast of greater economy and ef. ficiency in manufacture and sales with increased profits for all con. cerned. The country has definitely entered into an era of consolidation and the fact is registered by enthu siasm in the stock market.
 The recent merger report ma, have had something to do with the spectacular rise in Radio Corpora ton, although an important factor is probably that radio has caugh the popular imagination. and ther' is a belief that it may be the neN great industry, like the telephone and the automobile.
 The market has been a specia one in that the securities of twt classes of companies have beer most active-those whose bushes. carry an imaginative appeal to th' public, and those which have beel JULIE is NNii. t'uN~'i h7 cr'i eral Motors The tendency 10 dis count future prospects hase beel operative.
 The technical position of fadi' and General Motors also had consid erahle to do with the surprising up ward movement they led. In eacl case, the amount of floating stool was limited, and the law of suppl and demand operates effectively il the stock market There has in fac been noticeable curtaiiment in th floating supply of most securities I recent years due perhaps to the fac that people are locking them up [ avoid taking profits that will be sub feet to the prevailing high incom taxes.
 But what Is 70 my mind perhap