Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-07
RECOVERY IN STOCK
LIST AMOUNTS TO
SUBSTANTIAL GAINS
Market Pushes Steadily
Ahead During Week Despite
Adverse Trade Reports.
BEARS FAIL IN ATTEMPT
TO BRING ON REACTION
Most of 15-Point Loss Recorded in
August Has Been
Regained.
BY GEORGE T. HUGHES.

Special Dispatch to The Star.
NEW YORK, September cit was
a year ago this week that the stock
market experienced the first preliminary
tremor which resulted in the CONFUSION
of October and November. At the time
the popular comment was that the
market undoubtedly had been bid up
to extravagant heights in whirlwind
of speculation, but there was nothing
fundamentally" wrong with business.
We now know that there was some
thing wrong with business. Trade re-
action had In September of 1929 already
been in progress for two or three
months, although it was not generally
recognized. AS q matter of fact, the
market was tardy in rejecting an in
dustrial downturn, which had started
some time before.
Today the stock market shows sur
prising resistance to adverse news. The
passing of dividends, quarterly reports
showing decreased earnings and further
declines in commodity prices, as for
instance the slump in rubber and the
renewed fall in wheat, are ignored. The
popular comment is that the market
is oversold, but that there has been no
real recovery In business.
Pace Of Pickup Slow.
popular view was wrong in September,
1929, it is wrong in September, 1880.
1t is admitted that it takes q keen eye
to discern signs of trade improvement
these days. Something is to be expected
at this season, normally time of buSis
ness expansion, but the pace is discour-
agingly slow and the favorable items
few in number.
Perhaps the best that can be said
is that there has been an increase in
operations in the steel trade. The
Iron Age puts 1t at SIS per cent this
week, compared with 81 per cent week
ago and SO per cent three weeks ago.
This is good as far as it goes, but it
does not 90 far. Car loadings are
higher this week than they were
week ago, but that, too, ought to be
so at this time OF year. and the total
is much under that of the correspond
ing week in 1920 or in 1928, or for that
matter, in any year since 1922.
ending August %, the latest available
report, over the week ending August is
increase. That Is to say, railway bust
ness is still much under that of year
ago, but there is smaller percentage
decline than there was and the outlook
is for better comparisons as the Autumn
progresses. Incidentally, railroad evecu-
tives are much more optimistic than
they we're. One large Eastern trunk line
sent out an investigator to tour the
country analysing the business Situa-
alton. He returned this week with an
Unexpectedly favorable report.
Gain in Retail Trade.
Retail sales are said to be larger
and there is a better feeling in the
textile trade, but that Is about all.
Electric power production has fallen of
at time when it ought to be expand
ing. Total output, according to the
National Electric Light Association, was
1864 ,043,000 kilowatt hours for the
week ending August 80, against 1875
757,000 for the week ending August
%, and 1,736, 812 900 for the week end
ing August 81, 1929.
Coming now to the action. of the
stock market, there is much in the
way of encouragement. Taking the
averages as q guide, the rally after the
point on July 20, losing Is points in
the reaction which eliminated on Au-
gust IL. At the close on Friday night
this week over IL points of that loss
had been recovered. Traders who oper-
ate according to the chart" are watch
ing to see whether or not the market
will go through the old resistance point
Oh Cne upside, ana II LnaC happens Jney
will be ready TO buy stocks. If the
market turns downward again they will
be correspondingly bearish.
without making any predictions as to
the future, 1t can be said that raiding
tactics by operators for the decline no
longer unsettle the list There were
two striking illustrations of this situa-
ton this week when on Wednesday and
again on Thursday the market had to
meet concentrated selling by powerful
group working for lower prices.
Momentarily the attack succeeded, but
only momentarily. AS soon as the pres
sure lifted, recovery began.
Copyright, 1900