The Washington times., 1930-07-05
7 HIS WEEKS
RALLIES NOT
IMPRESSIVE
Firmer Commodity Prices and
Bond. Market Rally to Give
+. First Signs of Trade Boom
By THE SPECTATOR

DIV HE SF6N IA ORV
NEW YORK, July 5.-Another
severe test is in store for the
stock market next week, accord
ing to market observers who have
usually been accurate in their
prognostications in the financial
district. This weeks rally, accord
ing to these experts. was but
technical rally in a bear market.
liquidation in the meantime haV-
ing dried up by reason OF the
absence of selling pressure in a
holiday week.
At Thursdays close the gen
eral average of 90 representative
stocks was up only 612 points
from the low of the year, and
showed a Appoint shrinkage from
the April peak. The industrials
had rallied only 7 points and
from a 53-point shrinkage and
utilities had recovered but 10
points of 77-point decline.
Loans Drag
Meanwhile the bulls point con-
fidently to the cumulative evi-
dences of a technical improve
ment in the market. Thursdays
Reserve Board figures showed a
new decrease of $197 ,000,0 900 in
brokers loans, bringing the total
to less than the volume of Au-
gust, 1927. Few of the market
observers who are now talking
SAHpnN HNYiNAe iVA oil VNrnh
ability taken cognizance Of that
fact.
There is also the fact that
stockholders lists of the big cor
porations are steadily expanding,
while deflation of commodity
values as well as of extravagant
speculative ideas has been pro
ceeding at a good gait. Firming
commodity prices and a genuine
rally in the bond market will
give the first reliable clues to the
business revival. Accumulation of
good stocks should not be de-
layed much beyond the time
when these indications unmistak-
ably appear.
AHVCSSHACHG 1TuS9 OUylnK
Much has been said of the DO
sitlon which the investment trust
plays in the market, but whether
or not it acts as an important aid
or deterrent to price movement is
question that has not been sat
1sfactorily decided. 1t cannot be
gainsaid, however, that the i'm
portant investment trust is in
position to note the constantly
changing developments in various
companies and act upon them
sooner than the average investor
or trader. In this respect, it is in
tereSting to note the changes that
have been made in the holdings
OF the Lehman Corporation, Spon-
sored by one of Wall Streets lead
ing banking houses. in the period
between December 81 and June 80.
Common stocks that appear in
the portfolio for the first time in
clude 10000 shares of American
Radiator and Standard Sanitary.
$4,000 shares of General Foods,
10000 j. C. Penney, $4,000 Radio,
and smaller blocks of Associated
Dry Goods. Coca.Cola, Colgate
PalmoliVe Peet. Hahn Department
Stores, Liggett & Myers B, Para
mount Publix, Pure Oil, Anaconda
and Kennecott.
Common stocks whose holdings
were substantially ii creased in.
Glide Kroger Grocery, from 49,
O0C to $4,000; National Dairy,
from $4,000 to 10000, and Inter
national Nickel, from 10000 to
$4,000, and lesser changes in Air
Reduction, American Can, Macy,
National Biscuit, Radio-Keith,
Union Carbide, WESTINGHOUSE
Electric, American Telephone and
Telegraph, Electric Bond and
Share, Electric Power and Light,
Pacific Lighting, Humble Oil.
Standard Oil of Indiana, CONNER.
cial Investment Trust and Corn
Products.
Holdings were reduced in Gen.
eral Electric, Eastman Kodak
Consolidated Gas, Pacific Gas
Public Service of New Jersey
United Gas Improvement, Con.
tinental Oil, Gulf Oil and Stand.