Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-23
RECOVERY CHANGES
TRADER SENTIMENT
Rapid Rise in Stocks Be-
Iieved Likely to Bring
Some Reaction.
BY CHARLES F. sPEARE.
Special Dispatch to The Star.


Special DlSpaLch 70 Ins StaE'
NEW YORK, February 22.-While the
decline in the prices of wheat and cot
ton. persistent for weeks and now APP
proximating the average OF the depre-
citation in securities last Fall, has been
given as the chief reason for the cur
rent reaction in stocks, 1t is the belief
in Wall street that the rapid rise IN
speculative and semi-investment issues
and the swift recovery Of considerable
part of their losses has had most to do
with the change in the market sent1-
ment.
The extent of the recovery from the
low levels of last November is graphi-
cally indicated in the figures published
by the New York Stock Exchange OF
the open market values Of all listed
shares on February l. This does not
cover the entire period when stocks have
been rallying for the high averages this
year have only recently beer made.
Extent Of Rebound.
The Stock Exchange survey, how
ever, gives sufficient proof of the re-
bound when the figures for February
are compared with those of earlier
months to establish the fact that the
market had run into weak technical
position and that advantage of this was
being taken by the professional bear
crowd.
Going back to September l it will be
found that on that date the market
value of all shares listed on the New
York Stock Exchange was $50 ,668, 276.-
854. Although the break did not begin
until October "a in the important issues
there was prior to this a steady sag in q
great many secondary shares so that on
October l the market value of listed
issues was down to $87 1918, Ill ,423. The
heaviest losses in this month we're in the
motors, oils, rails, merchandising, avia-
ton and tobacco stocks, with public
utilities showing a great gain as well as
the issues of investment trusts and
trading corporations
Figures as of November represented
the situation after the extensive declines
on October "a and october 20 and also
the rally on October 81. On November
the market values were ST., 753 CSC, 90S.
On December l they were 500 ,589, $780,
1913, or about $4,000, GOO, 900 lower than
those OF September /. Only moderate
gain was made in values during Deem
Der, according to the Stock Exchange
figures, but in January there was an in
crease of $4,000, 958 1898. making a total
recovery from the low point on Deem
Der l of approximately $5,41o,ooo, 900.
However, had the compilation been
|, made as of week ago it would have
indicated that nearly one-half of the
total depreciation in listed shares be-
tween September and December l had
been regained. The size and the rapidity
of this rally is what bear operators have
considered their best ammunition in
making this weeks attacks on the gen.
eral list.
Comeback OF Utilities.
The greatest recovery in any one
group of stocks has been in the public
utilities. The total depreciation in this
group in the three Autumn months was
SIS 1852, 100000, of which 81 500 900, 900
has been recovered. Next to this group
the largest gain has been in the shares
of electrical equipment companies like
General Electric and Westinghouse Elec-
, trio and has amounted to $500, 00O, 900.
Railroad and equipment company
stocks have improved their market val
ues to the extent of 100000, 900, auto
mobile and accessory concerns $780,
100000, tobacco companies SITS, 000.-
900, food companies $3.50, 900 900, finance
| companies 5000, 900 900, and amusement
company shares 500, 000, 900 in spite Of
the decline in Fox Film stock.
(Copyrisht, 1s3o)