Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-19
FINANCE MARKETS
GAIN IN STABILITY
General Business Fails to
Show Improvement, but
Security Prices Advance.
BY JOHN l.. COOLEY,
Associated Press Financial Writer


NEW YORK, July 1s.-The financial
markets have become increasingly stable
this week, despite the absence of i'm
provement in general business condi-
tons.
BulliSh activity in stocks has reached
proportions not seen since Spring ana
has been strengthened by the markets
resistance to selling for both accounts.
Bonds are moving more quietly, doubt
less because of fear that money rates
will tighten with seasonal demands, but
leading banking circles are confident
that credit will remain indefinitely easy
until industrial recovery becomes fact.
Wheat, corn and cotton are moving
more in line with the weather news.
Sentiment in the wheat market i'm
proved measurably on word from WASH
ington that the Farm Board planned to
stop buying until the surplus had been
cut by reduction of acreage.
Pools Score Advances.
Since June "a, when the low point of
the recent break was attained, stocks
have advanced on 10 days and receded
on 6. One or two of the recessions
were very small. Pools selected dozen
or so shares that normally attract a
following and scored some sharp adj
vances, although it was generally ac-
knoWledged that the public following
was practically negligible. On all de-
clines, whether in the form of profit
taking or short selling, the market has
lapsed into dizziness, thereby presum-
ably serving notice of its inclination to
work higher.
Observers who felt that a technical
reaction was due by Thursday or FRI
day failed to see their expectations real-
lied as the market pushed through the
resistance points of previous rallies.
With the short interest impaired, the
possibility of a rather sharp reaction
seemed to be theoretically nearer and
many commission houses warned their
clients to be prepared for such a de-
velopment.
Conservative observers of the mar
kets action seemed to feel that the ad-
vance was largely technical. a rebound
from the recent depths of pessmism
which prevailed up to the Fourth-of-
July holiday. The lack of favorable
news from business, with the exception
of improvement in construction figures
which may or may not be temporary,
was brought forward in these circles
as an argument against much of an
upturn in prices.
Commodities Still Soft.
There seemed to be less fear that
the bulls would everyday their hand,
as they did in March and April, tor it
was generally conceded that the Spring
rush to buy, with the subsequent break,
had demonstrated the folly and the
serious consequences of such maneuvers
On the other hand, it was pointed out
that the country was several months
nearer the exit from the depression and
that fundamental conditions, especially
in credit, probably did not warrant ex-
CeSsive gloom.
The routine reports from various
fields showed that the business decline
had hardly been arrested. Commodity
prices continued soft, freight car load
ings made poor showing and steel
operations further emphasized the
slump. The Oil situation, however, i'm
proved. Gasoline stocks decreased by a
satisfactory future and daily average
output of crude reached the lowest point
of the year. In addition, Texas
producers fell into line with the curtaiI-
ment program already effective in
Oklahoma and California.
Time money occasionally gave EVIL
dence of seasonal Stiffening, but the
higher rates were only temporary, and
the return to the familiar low levels was
marked by a recovery in bond prices
late in the week. Call funds ranged
from to az per cent, rejecting, in
part, an increase of $50, 600, 900 in de-
posits of New York City banks Cecurity
loans of these institutions increased by
the nominal amount of $4,000, 600,
brokers loans gained $40,000,000.