Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-03
MARKET FOLLOWS
FORMER COURSES
Stocks Recover Faster Than
Business After Crash
Last November.
BY JOHN F. SINCLAIR.

Special Dispatch to The Star.
NEW YORK, April 3.-Are stocks
too high? Is the market technically
healthy? put these questions to L. D.
Edie of the Investment Research Cor
poration of Detroit.
November is notorious as the stock
crash month";" he replied. Look at
the Novembers of 1908, 1908, 1921 and
1929. A study of the periods follow
ing these crashes show that. while bust
ness remained from 5 to Is per cent
below normal for the next IL months
following each crash, stocks recovered
from so to so per cent during the same
period.
To-day business conditions are or
per cent below normal. while the
market has recovered from 40 to 40
per cent from its November lows. So
be your own judge of whether the mar
ket is high or low.
"One must weigh more factors now
in Judging values than ever before.
continued Mr.. Edie. MANY seasoned
market observers believe that the long.
time tendency of money in the United
States is down, and not up. II true,
such a factor becomes OF first I'M
portance."
Yesterday was another 5000, 600
share day, with stocks getting nowhere
In particular.
This writer has received several COM
munications both for and against CHAIN
store operation. The subject is OF t1rst
interest in many parts OF the United
States today.
Herman Roe. the field director of the
National Editorial Association. makes
this statement "Opportunists are al
ready in the field cashing in on the
anti-chain store fever. Solicitors are
obtaining cash contributions from small
town merchants, oStensibly for fght-
ing fund, but what they want is their
share of the easy money"
But r. w. Lyons OF the National
Chain Store Association, answers thus
History has yet to offer major ex-
emple to indicate that an economic de-
velopment of sound origin and beneficial
results can be meaSurably affected by
selfish agitation. The ultimate con-
sumner decides every such battle"
This is fair statement and one That
both independent store owners ana
chain stors operators can subscribe to.
j. w. Sartori. president of the Sc
curity-First National Bank OF Los
Angeles, thinks the present agitation
against the larger and more concen-
trated industrial units will fail because
every economic trend is moving in that
direction.
1T is perfectly possible" says this
Southern California banker, that we
may be entering a general period
of antagonism against modern economic
developments such as the chains lndl-
cate, similar to that which existed IN
the latter part of the nineteenth and
the early part of this century with
respect to large concentration of capital
in business enterprises. If, however the
present economic trend in these par
ticulars is sound, it will, in my judg-
ment win out in the long run.
When asked regarding conditions In
Southern California today, Mr.. Sartori
made this comment
Conditions in Southern California
have not experienced any very per-
ceptible change within the last 80 days
Business is fairly we'll sustained, but at
levels below those of the corresponding
period last year. We have ahead of us
in the next few weeks a water bond
election for a sum of $40 $780, 900. A
part of the money from this bond issue
If it is passed, may be used to secure
additional water in the Sierras-sufh-
million of population. And I believe II
will prove a great stimulus to business
activity in the Los Angeles region"
The Art Dealers Association says that
Americans spent $250,000,000 for works
of art last year.
Of this amount. about one-third was
spent for old masters, this business be-
ing centered in New York, Boston and
Chicago. One picture, Pero Della Fran
cesca's "Crucifxion," brought $375,0OO;
Romney's portrait of Elizabeth, Duchess
of Sutherland" brought $250,0OO from
L. P. Fisher of Detroit.
Some big buyers of old masters are
Thomas B. Clarke, Jules S. Bache,
Lawrence P. Fisher, Joseph P. Wldener,
w. r. Hearst and Adolph Lewisohn.
The other two-thirds of the total was
spent for modern art. 1t included paint,
ings, sculpture, mural decorations and
paintings. Among outstanding collectors
in this field are Mrs. Harry Payne
Whitney. John Ringing, Mrs. John D.
Rockefeller, jr: John Spaulding OF Bos-
ton, George Douglas of Minneapolis and
Edsel Ford of Detroit.
F. Newlin Price, president OF the as
ISOLATION. reports that business during
the months of January and february
was fully up to that of last year.
(Copyright, 1890. by North American News
paper Alliance.)