The Washington times., 1930-01-20
MARKET FUTURE
| ACTION HELD !
IN DOUBT

NEW YORK, January 30
Performance Of the stock market
ast week furnished the best pos.
tble idea Of what probably can
% expected over the immediate
Future.
Opening with o fair degree of
Armness the market entered into
p period Of sustained general bet.
erment In quotations which last
I'D until nid-week.
AZ tho very stage, where the
arket seemed most attractive
pc the bullet element, prices
pesan to slip and finished the
week at levels which more than
cancelled the early Improvement.
All In all, the market dis
played no tendency to break out
OF the treacherous irregularity Of
preceding weeks. It's recent ac-
tlon has been Of a nature to dis
courage temporary trading.
IL mas been noticeable that
group activities thus far have
peen confined to lower-grade is
sues. and even in this group
public following has not yet been
attracted on any sizeable scale.
'Ihere can be little doubt that
Cne short interest at present is
very large. In several stocks
IL probably is the largest on rec
ORD, The shorts have not yet
mad any reason to become fright
ened and run to cover.
The1r very number, however,
probably prevents them from
gaining any substantial victory,
since they afford immediate sup
port on Setbacks.
The present crop of short.
sellers is not quite as brilliant
nor as well-informed as the shorts
who were quietly opposing the
market late last summer. Many
people who formerly were unac-
Quainted with the intricacies Of
Short-Selling have discovered re.
Gently that moderate profits have
been more easily obtainable on
the bear side and therefore have
been more active on this side
OF the market.
The very nature Of recent mar
ket action indicates that the
short interest is quite Content
to maintain its position, but the
size Of the short interest prob
ably is growing daily. EVentu-
n0IvR &I14 Il1A& ic
pared to turn definitely upward,
this short interest probably will
be caught asleep.
In the highest banking circles
there is a noticeable diSinclina-
ton to forecast market move
1nents. Sentiment generally in
responsible quarters leans to the
opinion that it is yet too early
to Judge whether the security
crash will exert more than tenn
porary influence on general trade
and industry.
The first quarter this year Is
expected to show q slowing down
In business activities, but the
more important factor is whether
this recession will develop into
D deep depression.
The setback thus far has been
at an unusually rapid pace, so
that the optimistS are declaring
the recovery will develop sooner
than generally expected.
The other side Of the picture
Is presented by those who fear
the pace may disturb conditions
more than had generally been au-
ticipated. Thus far, it is de,
clared In the highest banking
circles, there is no sign that the
country definitely has broken
out Of the cycle of prosperity
which it has enjoyed for years.
II this cycle of business pros
perity is maintained, the break
in the stock market, severe as it
has been, will prove only a halt
in the march to record breaking
high levels.
That the cycle remains unbro-
ken, however, will be proven only
by trade and industrial develop
ments Of the next few months.
Trade reports coming to hand
indicate that lesSened activities
are apparent even at this nor.
mally dull season. January and
February every year bring slow
ing-tlp in business.
Hope is expressed that the ma
fion.Wide endeavor to, maintain
business viii bring forward sub
stantial buying which ordinarily
might be delayed to later months.
II large-Scale buying is brought
forward, industrial production I'm
doubtedly soon will recover a
normal pace. This will permit
maintenance Of employ men t
schedules and generally sustain
the buying power Of the country.
Belief expressed here that bank
ers are anxious to develop a
more active demand for bonds
received confirmation in the large
scale bond financing which al
ready has developed.
The last week brought the larg-
est volume of bond financing
for any similar period in peace
time history.