The Washington times., 1929-12-23
MARKET
LOSES PUBLIC
INTEREST

NEW YORK, Dec. 20. - The
stock market is being left almost
entirely to the professional ele-
sment.
Public interest has been killed.
Whether the reason for such de-
truction was international finan-
cling plans or real fear OF credit
conditions the result is the same.
No revival Of public interest in
dealings can be expected for
:qui' awhile.
Tax loss selling and continued
bearish pressure kept the list in
& downward trend throughout
the past week. With the start
of the holiday season the bank
ing powers may take advantage
iof the large short interest to give
the market better appearance.
It is too late now, however, for
such action to have much effect
on Christmas trade.
Buying at retail, it would seem
from reports, holds UP in better
manner than might be expected
at q time of a bear market in
stocks. What trade conditions
will be Immediately after the holi.
days is q matter Of dispute, but
nothing more than a rally from
technical influences is looked for
in. the stock market.
About the only vacationistS this
!. winter will be professional mar
8 ket operators and many of them
intend to take long rest.
January / interest and dividend
payments viii amount 20 over
81 ,OOO, 100000. Bankers hope that
most of it will be put to work in
the bond market. They believe
that all possibility of competition
with bonds from the stock market
has been wiped out.
However, with most good bonds
now selling to yield under 5 per
cent, there is not much attraction
to the average security buyer.
There is comparatively little in.
duStrial financing to be carried
out, but there is increasing hkeli-
hood of a, large amount of foreign
financing.
. It is claimed that the flotation
of the first batch Of reparation
bonds can be looked for early in
1890. 1t would be the start of an
era Of foreign financing that
would run for a year or so.
FROM the number Of invitations
pouring in, Wall Street viii give
more time to celebrating Monday
and Tuesday than to the stock
market.
According to advices from Lon
don, the Bank of England VIII put
It's rate on q 4 per cent basis early
ii the new year.
AS the accord with our money
that our rediscount rate would s0e
put to ~ per cent or lower.
While there is considerable TAX
IN tile street regarding gold ship
fnents. the international bankers
are not worrying that credit
conditions will be upset.
They know the foreign ex-
change market is rigged and they
can pull the plug on sterling or
any other currency whenever IT
Is necessary to stop gold move
naents.
The best way for banks to fos-
i ter optimism. 1t is claimed. would
be to show a little more COURAGE
especially in making loans on
good collateral.
Just about this time of the
year newspapers start receiving
the annual expressions Of views
from financial and business lead
ers. The several received thus
Tar are the most lInintereStiflg
and meaningless ever issued.
Those who express definite
siew are bearish.
Others, who are In the major
1 aty, try to be optimistic and ex-
press confidence in the outlook.
Every line Of their opinions. how
ever, betrays their doubts as to
conditions during the first half
faof 1880. Such views, expressed
IN such manner, only enhance
the nervousness Of the public and
tend to extend the trouble.
There is nothing fundamentally
wrong with business but there
has been q definite change in
public psychology and this viii
not be corrected until the bank
ing powers give a new stimulus.
Although the market does not
show It there is bargain hunting
going on. It Is not in the secur-
tiles. that so many brokers like
to cali the good stocks" such as
General Electric. Steel, etc.
It is to be found In stocks Of
established companies with relia-
Bile management that at present
prices yield from Z to over 10
per cent. The bargain hunter
knows that some day such stocks
win climb back to something
like their past glory.