The Washington times., 1929-08-17
| R R REGULAR|TY
MARKS WEEKS
TRADING
Ry ~. 8. COUSINS

NEW YORK, Aug. IL I.N.SJ-
Though the hilarious upward move
ment in u. s. Steel, American Can
and other speculative favorites con.
tinued with little interruption this
week, the market as a whole was
Irregular, with as many stocks scrap.
ing bottom as were soaring to the
highest levels in history. There was
a strong suspicion at the weekend
that the big bulls had once again
thrown up a Smoke screen In the
shape OF sky-rocketing move in
the popular industrial stocks to as.
sist them to unload their holdings
IN other sections of the market.
The effect Of the reserve boards
atrange action in raising the .re-dis.
count of the New York Reserve
Bank. Thus the plan works out ex.
actly as intended, the banks having
lightened their rediscounts by $780,
100000, while the Reserve banks in.
jected 5000, 900, 900 new credit into
the financial markets.
Big Bulls At Work
The $68,OOO. 900 decrease in Brok.
ers' loans indicate quite plainly the
shedding of margin holdings of
speculative stocks and the accumu-
iation of the same by powerful in.
terests. The big bulls were at work,
but investment trusts and "inSid-
ers" also took large blocks of stocks
out of the market, releasing the
bank loans advanced against their
stocks and easing up the money
market as a whole and the bears
were caught in a bad jam when
the market opened on Friday.
With the improvement in money
market and the maintenance of the
high operating rate of the steel,
copper, motor car, building con.
struction and other important in
dustries. investors and speculatcrs
rushed into the market this week
to buy their favOrite stocks ma.
tionally-prominent economists and
investment experts, as the result
of an important check-up on secur-
fly holdings. reported as increasing
trend away from bonds and mort
cages to equity stocks on the part
of investors all over the country.
1t makes little difference whether
their resources run UP into the mil
lions or at best can be counted in
the thousands or hundreds. they
have learned the benefits of stock
investments and are not likely to
be weaned away from them.
Stocks Split.Up Seen
Impressive bullish leadership OF
United States Steel, American Can,
General Electric, Westinghouse,
New York Central and other high
grade dividend-paying common
stocks inspired confidence In the
market. Wall Street Is convinced
that gratifying dividend increases,
stock split.ups, new stock offerings
on valuable rights ana other
benefits will accrue to hoiders Oh
these stocks over period OF
year or two, which will be perIecIly
logical IL earnings continue at me
present rate.
poration have not given speclal con-
sideration to any form OF recap
italization of the giant Spmpany'
according to reports from reliable
ouarters. n is too soon after the
cora anIetion Of plans for the wiping
MT oe its bonded debt to talk Of
new stock melons, according to Of
ficials of the corporation, but larger
cash dividends will eventually fol-
low the enormous increases in earn
ings that have been reported over
the last few years The same Is
true Of American Can. which has
expanded it's producing facilities
and increased its net earnings on
grand scale in the last three years.
with hardly an exception the in
dustrial and business reviews OF the
week emphasized the continuance OF
the remarkably heavy mid-year
pace of the steel, motor car. copper,
building construction industries.
The backlog of incoming orders
has apparently grown no less, while
in many cases demands have in
creased for quicker deliveries.