The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-02-12
CONFIDENCE is
Renewed FOR
STOCK TRADERS
End of Bull Market Is Not
Yet in Sight, Present
Feeling Indicates.
BY ELMER G.. WALLER,
United Press Financial Editor

United Press Financial Editor
NEW YORK, Feb. IL. - Wall
Street had another holiday today,
but it was in different mood from
Saturday when gloom was the para
mount outlook.
Optimism prevailed today instead
of fears of pressure from the federal
reserve board, and the end Of the
bull market appeared not yet in
sight.
Now that the stock market has
had its technical correction Wall
Street looks for resumption of the
advance, with a salvo Of sensational
gains and seething market as Her.
bert Hoover is indicted on March
4, into the Office of President of the
United States.
Changes of heart come fast in
Wall Street. One moment the f1nan-
cial community is depressed to the
depths and the next it may be rid
ing on the crest.
No Change in Rate
That chameleon-like tendency is
natural III a market tense with
prices pulled taut to the point where
they may snap at any moment.
Such was the condition Of the
market when the federal reserve
board announced its new policy last
week.
Call money rose on Friday and
selling sent the list down after an
early recovery.
Of course the rise in the London
rediscount rate was a more potent
factor In the decline which carried
the average down $20.53 in the last
three days of last week.
Saturday and Sunday we're days
in which thought could be given
the situation. Traders returned
Monday confident that the New
York Federal Reserve bank would
retain the S per cent rediscount
rate.
That guess proved true, for there
was no change made in the rate
at the special meeting of New York
bank directors. They will hold
their regular meeting Thursday, but
Wall Street expects retention Of of
the present rate for several reasons.
Situation Is Normal
In the first place, congress has be-
gun to take a hand in the reserve
situation and might make q, sorry
mess of it if a rate rise gave bust
ness jolt.
Then, too, Secretary Mellon has
let it be known that he is adverse to
sudden changes that would start a
radical selling movement.
The situation last week was per-
fectly normal. The stock market
needed correction. The rise had
been very sharp and, naturally, the
subsequent decline was just as
severe.
Over the weekend brokers be-
came more bullish and advised hold
ing good stocks and picking up ad-
dit;ona1 issues On the decline at
bargain" prices in anticipation of a
further advance. Wall Street needed
this advise mostly because it CO.
incided with the general belief in
the Street. -,
The outstanding danger sign just
now is call MONEY. This is forcibly
demonstrated in the abrupt break
Friday when the rate rose to 9 per
cent, and the acceleration of the adj
vance Monday when the rate
dire. ped from s to Z per cent.
Averages Show Cain
Mondays gain resulted in a net
advance of 1882 in the average
price of thirty representative indus
trial stocks. That gain brought the
figure to $310.35.
The railroad average is now at
$156, up SLIT from Fridays close.
The industrial figure is now back
to where it was on Jan. % when
it made a new high to that date
of $3l0.33. The high record for all
time was achieved just a week ago
when the average rose to $322.06.