The Washington times., 1930-06-16
seen
IN MARKET
!. TODAY
Buying at Current Levels,
= Expert Says, viii Garner
Good Profits, Using Care
BY THE SPECTATOR

BY THE SPECTATOR
The trading on the stock ex-
change for the last few weeks
has resolved itself into a battle
Of sharpshooterS. with victory go
ing to the faction with the most
courage at crucial moments.
1t must be admitted that most
Of the honors recently have gone
to the bears, who had an easy
time depressing prices in Satur-
days short session. According to
those who usually know best, the
short interest in the market at
this time is larger than it has
been in many years. Therefore.
it is illogical to believe that the
constructive forces are going to
'1et the bears get away with
their raids" I expect turther
selling in today's early trading.
and it may continue throughout
the day.
1t is fairly certain, however,
that the shorts will be squeezed
within a day or two, and those
who buy stocks at current levels
will be able to get out with a
good margin of profit. Don't
forget my advice, repeated IRE
quently Of late-buy them when
they look low enough, and sell
on all rallies.
The Tariff Bill
There is a sharp division OF
opinion in Wall Street about the
probable effect of the tariff re-
vision on business and the stock
market. In some quarters, 1t is
claimed that, while business inter
ests were opposed to the new
high schedules, they will swallow
their grievances and string along
with the Administration. At any
rate, it is likely to be a year or
more before foreign repriSals can
have any adverse effect on Amer
lean trade. Little attention is
paid to those who claim that the
new tariff-which is quite certain
to become law-will bring further
caution on the part of business
men and cause them to cut pur-
chases to the bone.
Among the encouraging business
reports is that of the life insur.
ance companies. which state that
new business for May was 4.7
per cent below that of May, 1925,
but that business for the first
five months of the year was 1.3
more than in the same period
last year. Some one must have
money.
Copper Shares
The price of copper metal is
down to IL cents a pound and it
IS. said that. due to the general
slump in industrial activities the
level is firmly established. Both
foreign and domestic demand has
fallen off from last months high
levels. All of which augurs Ill for
copper shares. I think they will
sell lower before they move
higher.
Most well:informed operators
believe the tariff news has been
amply discounted
NdNAV"41OAbA"~AH HACuA
There are few stocks on the big
board that I am willing to recon-
mend at this time, because think
there is good chance that they
may sell lower. I like R-K-O, how
ever, because a deal Is pending
which will materially expand
earnings of the company. OF
course. it is a merger with an
other theater chain. Negotiations
are under way, but may be de-
layed somewhat, due to the action
Of! the stock market.
Dividend payments of the STAN
dard Oil Company for the second
quarter will total $68,590.0 900, a
new high record. which compares
with S66, ,762, 900 in the first
quarter of the year.
Transcontinental Oil
Transcontinental Oil was all
over the tape in Saturdays session
at higher prices. The company'S
bonds sold at new high levels for
the year, reflecting announcement
that the absorption of Transcon-
tinental Oil by Ohio Oil will reach
early consummation The chief
difficulty of "TCN" in the last
few years has been its heavy cap
italization, which served to offset
the effect of successful drilling
operations.
General Motors officials have
been frank in forecasting more
serious unemployment situation
and further business difficulties in
case the tariff bill should pass.
Now that the bill seems sure of
passage, it will be interesting to
note what happens to "GM"
shares, which have held up amaz-
ingly well during the current re-
action.
international Telephone
The weakest feature of Satur-
days market was International
Telephone and Telegraph. which
was offered freely at concessions
all through the session, reaching
a. new low for the year The
pressure reflected knowledge that
the company's earnings for the
current quarter will show no i'm.
provement over those Of the first