Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-02
Market Holds Up Well During
Week, Despite Bank
Pool Sales.
FURTHER IMPROVEMENT
is PROBABLE IN MARCH
Precedents Show Prices Have Had
Rising Tendency in
Former Years.
BY CHARLES F. SPEARE.
ial Dispatch to The star.

SpSNAAA
NEW YORK, March This weeks
stock market has had to face number
Of influences that have retarded its
progress toward a higher level. Some
Of them have been of q technical char
acter and grew out of the conditions
within the market. Others reflect in
dustrial and agricultural situations in
imical to business and, therefore, detri-
mental to securities.
1t has been apparent for some time
that stocks had caught up with the re-
covery in trade and that a substantial
part Of the day-to-day transactions
were Of professional character. orig
mating mainly on the floor of the ex-
change. Public buying, which was of
such large proportions two months pre-
viouSly, has dwindled to small total
as the shares Of corporations have
again passed from the price area where
they were attractive for an income or
for possible appreciation.
No matter how serious was the out
look for industrial earnings, the buy
erS Of November and December knew
that eventually they would realize sub
stantial profitS on equities" then
quoted much under intrinsic values.
Today their attitude Is that most of
OF the trade improvement, while the
uncertainty that surrounds business
does not warrant adding to their in
vestmentS until there are further def
mite signs Of q recovery in earnings.
Floating Supply Increases.
Although the so-called bankers
poor had no intention of making per-
manent its purchase of 500, 1000, 900 of
stocks, the fact that it has liuuidated
what 1t bought at recent price levels has
been accepted as proof that shrewd
judges OF the market also feel the re-
bound has been sufficient and that the
prices at the two peaks of December 9
and February ID recognized the maxi
mum possibilities In the immediate sit
uat1on. From other sources controlling
large amounts of stock there has been
liquidation or proflt-taking. 1t is with
the increased floating supply of many
individual issues that the market Is
now struggling.
Under the circumstances it has main
tanned an extremely stable position, and
Win rev shares making large gains,
the general average of the industrial
list late In the week was nearly back
to the point from which the decline of
the week previous set in.
Inc commodity market episodes this
week nave been curiously like those in
stocks last Autumn. The Farm Board.
IKE the various banking groups that
tried to sustain the prices of stocks
against . Hood Of offerings, bought too
soon. It's purchases on Tuesday. when
March wheat went below 81 a bushel.
nag the same practical and sentimental
erect as the bid which the Rockefeller
interests made for 1,o00,0 900 shares of
S0GAnnATn u. En
November -. The recovery in the
price OF wheat since Tuesday has been
relatively as great, compared with its
maximum fall, as was that In stocks
aIter the last distressed holdings were
TAKEN out OF the market It now re-
mains TO be seen whether at the present
quotations wheat can hold against un-
favorable trade statistics.
Causes Of Commodities Drop.
There are deep economic and polit-
ical influences affecting the commoditv
situation and bringing so many differ-
ent kinds Of products down to the low
est levels In many years. Primarily. the
Mouple Is one OF overproduction, which
mas not been corrected by anything that
able to do. oAA
An indication Of the check in the
recovery III business, following the mo-
mentum which 1t attained up to the
middle OF February, is given In the less
favorable reports this week from the
iron and steel industry. This is chiefly
due to q decrease in the demands from
the automobile trade, whose purchases
OF Steel this year now are estimated at
only so per cent of 1929.
Naturally, the decline in prices of
farm products, while more serious to
the middleman than to the farmer. re-
tards buying Of agricultural implements
and OF general merchandise. This is
evident In the slow recovery In the
earnings Of retail stores, chain stores
national distributors and is most visible
In the continued decrease in the total
OF railroad car loadings. The January
statements Of the carriers make the
poorest showing in several years and
Will continue unfavorable for Febr1Iarv
and probably through March.
(Copyright, 1sS0)