The Washington times., 1930-01-13
MARKET SHOWS
NO Definite
TREND.
BY BRoADAN WALL

ny bMOADAN WALL
NEW YORK, Jan. IL CUS0.-
first full week Of the new year
failed to bring any defininte evi.
dence as to the stock market
trend.
II anything. however, it de-
noted a greater attempt on the
part Of the constructive forces
than in several weeks to generate
renewed optimism toward stocks.
That they failed to encourage
any noticeable revival of activity
ana strength IN the general list
Is not to their discredit. &
Rather, the weeks develop
mentS furnished evidence that
public participation can be stimu-
lated by a strong. market. AS
long as the price fluctuations are
restricted to minor range and the
market gets nowhere in particn-
Lar public interest in stocks will
be negligible.
There is a noticeable. lack of
actlve interest in the stock mar.
ket among bankers. Whether this
IS a reflection Of the nervousness
created by the terrific smash in
pr1ces-and the banks didn't es-
cape altogether-or whether it
marks a determination on the
part OF banks and bankers to-
divert public attention to other
investment channels, remains to
be disclosed.
There is, however, no doubt
out that the banking fraternity
generally would welcome a re-
neWed demand for bonds. Ameri-
can Telephone and Telegraph Com
pany'S financing through a pub.
hc offering for the first time in
years reflects the changed bank
erS' conception of the public in
VeStment appetite.
A: T. & It's last financing
was accomplished through con.
Vertlble debentureS whose stock
privilege resulted in tremendous
speculative appeal to the stock
mflamed public, -,
This time the company is r..
nanclng without any stock inter
est. That the banking commun-
lty is desirous of developing an
active bond market is evident
from their private comments and
their known program for exten.
slVe financing in coming weeks.
+
From a purely technical stand
point the stock market has many
factors to attract q friendly feel
ing Tor the immediate future.
Thus, each time the market re-
Gently has broken cut Of the rut
Of dullneSs it has been on the
upside. Although the rallies fail
to hold, it Is most noticeable that
increased activity develops.
Every sustained upSwing usually
Is preceded by numerous false
starts until finally the improve
ment gets under way almost with
out artificial stimulus.
TWO different thoughts are ex-
pressed in leading stock market
circles with regard to the outlook.
One holds to the theory that this
Is purely a trading market and
that purchases of stocks should
be made only with the expecta-
S1on OF enjoying a small rally.
This opinion also is that the
present Is an inopportune time to
make 1onger-term investments In
stocks. ~
AS opposed to this theory on
the market is another which ar
cues that the present will prove
to besa most profitable period for
long-term Investment In stocks
This latter opinion discoliraees
any trading in the market at
present, holding that price fluc-
tuaClonS promise to be unimpor.
tanG and improbable unless trad.
ers are extremely nimble and
satisfied with only the most mod
est profit possibilities.
interests most anxious to revive
the market broadcast that money
rates will continue extraordinarily
~SSSSS ASSAAAAAAS 0Ou1CCS dIG nor so
confident that an unusually easv
money era is in store. Albert 81.
Wiggin, head of the powerful
Chase National Bank, and one Of
the most aStute bankers in the
country, warns against any such
expectations Of easier money.
The banking fraternity is best
acquainted with the great read
justment in money rates now tax
ing place throughout the world.
This involves the gradual restora-
ton Of gold reserves among vari-
GUS nations. with consequent in
fluence of interest rates, commod-
ity prices, etc. }.
It is too early to determine the
probable results of this ,readjust-
ment on the United States, but
that it will be of consequence can
not be doubted. It will probably
have great influence on the for.
eign trade of this country a mat
ter which is known to be one of
the uncertainties in the minds of
leading bankers. ..