The Washington times., 1929-04-13
WEEK s TRADING
IN STOCKS
ORDERLY
BY w. 8. COUSINS

NEW YORK, April 13. Q.N.SD.--
Important buying of standard in.
dustrial and railroad stocks on the
New York Stock Exchange this
week reflects the belief of the finan-
cial leaders that the credit problem
Is to be solved to the satisfaction
of all concerned. and particularly
20 the Federal Reserve Board, which
mas undertaken the ungracious task
OF sacting as unofficial censor of
the credit market and all its works.
The third consecutive weekly
shrinkage In brokers' loans was
announced this week, bringing the
total 1856, ,000,000 below the total
OF the last week in March, and this
IN spite of the fact that there has
been q considerable increase in the
amount of new stocks and bonds
floated in the outside markets by
the banking houses. These new
elotations require bank credit to
carry" them until distribution has
been made, but in the loan compila-
t1ons 1t all looks like brokers loans.
At least no discrimination is made
between money used in this process
and in stock speculation In the
listed markets.
Trading Orderly
On the whole, the market was a
quiet and orderly one, with trans
actions back to the 0,000-sftare
daily pace and professional opera
ttons responsible for the bulk of the
daily turnover in the active shares.
Extremely favorable reports from
the steel industry stimulated con-
ftdent buying of the steel shares
with Bethlehem and United States
Steel common the favorites. 1t is
expected that the new steel shares
will be offered to stockholders at
$3.50 share on the basis of one
share for each six shares now held,
and announcement to that effect is
expected next Tuesday. On that
basis the rights would be worth
shout 81 share.
Since most OF the efforts of the
big bears to force prices downward
proved unavailing it was the logical
conclusion that the market for the
time had struck bottom. The brok.
ers have so stiffened the require
ments for margin trading that the
accounts of small and large specu-
lators are in unusually strong posi-.
ton, and the sweeping out Of
poorly-margined and weak -kneed ac-
counts is an entirely different
process today from what it was a
few years ago. The reduction of
the floating supply" of stocks by
the outright purchases of individual
traders. investment trusts, etc, has
also had an important stabiIizing
effect upon the market.
ThA iItsnoA oovor4ar n
manufacturing stocks were in good
demand this week, with a strong
cushion of buying orders a point
or two below the market at all
times. This demand was sufficient
to prevent any vide decline in prices
of the welEknown issues on any of
the listed exchanges.
Copper Prices Drop
A decline in copper prices to be-
low 20 cents a pound was without
special effect upon copper stock
prices, for the reason that the re-
cent bulge" to "a cents a pound
in copper metal was never consid.
cred as a permanent basis for the
price of the metal and most of the
producers can make good profits at
IL to 20 cents a pound. Anaconda,
sShllc diu otHeF UlS concerns are
rated as the low cost producers"
Of the copper metal and any price
above IS cents means excellent
profits for them.
The speculative loan situation has
afforded the politicians, amateur
economists and other students of
the great speculative game an op-
portunity to speak their mind on
remedies Of all kinds. but up to
the present time no workable soiu-
tion has been provided. The econ.
on1ist who said that speculation
would have to commit suicide" be.
fore being satisfactorily killed off
probably hit the mark as accurately
as any one.