Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-23
ADVANCE IN STOCK.
MARKET CONTINUES.
DURING PAST WEEK.
List Displays Better Re-
sistance to Selling Despite
UnfavorabIe News.
INCREASE IN ODD-LOT
PURCHASES is FACTOR
Improvement in Business Sentiment
Has Accompanied Higher
Commodity Prices.
BY CHARLES F. sPEARE.

BY CHAhLES +. SPEAkE.
Special Dispatch to The Star.
NEW YORK, November 22-There is
no occasion this week to revise the
opinion earlier expressed that the prob
able low point in the stock market was
reached on November 10. While prices
have not gained much in net since
last Saturday, public and professional
respect for securities has been in
creased by their ability to resist I'M
favorable outside influences, such as a
succession of important bank failures
and a crisis In the American and
Canadian grain markets that had in it
the possibility of far reaching financial
troubles.
Sentiment in the business world,
meanwhile, has been steadily improv-
ing. A month ago few timid voices
proclaimed the end of the downward
movement in trade. Now there is
daily chorus by the optimists in in
dustry, who are predicting a slow but
sure upward turn from the Autumn
depths Of depression.
The country is in a different mood
and willing to listen to reasonable argu-
mentS in favor of improvement. No
influence has contributed to this
change 80 much as the sterilization Of
securities. This has an Importance
in the reconstruction Of business equal
to a similar, but less positive turn, In
the market for commodities.
Stocks Well Liquidated.
Judging from its action this week, the
stock market has been quite thor
oughly purged of its bad elements.
Those who are most familiar with its
undersurface conditions say that it Is
80 per cent nquidated. In this re-
spect it Is stronger technically than
1t has been in two years.
In other ways it is equally well forth
fed against further attack. 1t is esti-
mated. for instance, that since the mid
die of September nearly 1000, 900 shares
of stock In odd lots have been bought.
paid for and taken "out of the street"
Inasmuch as comparatively small
proportion of the 5000, 900 odd-lot pur-
chases of the October-March period
preceding has been resold, and as cash
buying in units from 100 to 1000 shares
has been active, it must be obvious
that the floating supply Of stocks Is
diminishing at a rapid rate.
Another phase Of the same situation
is the short interest. Just how the
size of this is estimated when so many
individuals are party to it cannot be
explained. Brokers who lend stocks
can probably make the best gueSSeS.
It Is their belief that the bear position
Is more extended today than 1t has
ever been. As large part of this was
contracted when prices were much
higher, the sellers see no reason why
they should hasten to cover. They
argue that the market has not dis
counted the poor corporation statements
for the last quarter Of the year and
the dividend reductions that are likely
to be associated with them. There Is
also the potential short interest grow
ing out of the sales of stocks to estab-
lish losses for income tax purposes
This week signs have appeared that
such securities were being replaced, and
that more will be repurchased before
the 30-day limit expires next month.
Buying for Yields.
Prices have not advanced enough in
the past 10 days to check buying based
primarily on the high income return
available to the investor. In fact,
there Is q Considerable element Of the
public that would prefer to pay more
than the current quotations for stocks
II they were assured that the market
had definitely turned, rather than to
start accommodating them in a period Of
unsettIement 1t is significant that
number of new fixed trusts have
brought or are about to bring out Of
ferings Of unit shares on the assump-
ton that the separate issues in their
portfolios have about reached bottom
prices.