The Washington times., 1930-06-21
TRADERS FIND
P|CK|NGS At
NEWL0WS
Liquidation During Week
Shows Prosperity Blinded
People Coming to Earth
By SPECTATOR

NEW YORK, June 21.z-As pre-
dicted In this column yesterday,
the rally failed to hold and the
close found stocks all through
the list showing losses of / to
more than 10 points. Today's
session. is likely to be dull af-
fair. with prices fluctuating in q
somewhat narrow range and
finally closing at still lower levels.
The current nervous uncertainty
is likely to influence further sell
ling, by traders who would rather
take losses than let long commit
inents stand over the weekend.
AS matters stand. the technical
position of the list is considerably
better than 1t was at the close Of
trading Thursday, and around
today'S lows many stocks will be
attractive. purchases for trading
turns. Traders with courage to
buy today in anticipation Of get
ting profits early next week
might do fairly well on the next
rally. I would warn. however,
against overwhelming commit
ments.
It is reported on good authority
that Electric Bond and Share in
tereStS made substantial addi-
tionS during the weeks liqulda-
tion, to- their holdings in affill-
ated companies, including Amerl.
can and Foreign Power, Electric
Power and Light, American Gas
and Electric, American Power and
Light, and National Power and
Light. OF course, bond and share
interests are in a position to
ignore .day-to-day fluctuations and
held such stocks for the long pull.
Nevertheless, ! am inclined to
believe that purchases of leading
public utility shares at this time
will show handsome profits on
rallies. ..
Some leading bankers profess
to believe that old line leaders IN
the stock list have seen their
lows for q long time to come.
On the other hand some Inn
portant market operations expect
gradually declining prices all
through the summer.
The liquidation during the last
week indicates that many people
whose vision had been clouded by
the prosperity of war days and
the. 1g2S.2s bull market have
wisely decided to get back to
earth and realization Of funda-
mental conditions. They are be-
ginning to realize that 1929 was
an abnormal year, that 1t really
established a peak for all lines OF
business and industry, and that
nothing in history ever has COM
pared with conditions in that
year. The sooner this realization
spreads to the general public, the
Soonet will the country find its
way back to the path of prosper
ity. The struggle back to the path
will depend on hard work, sound
leadership, foresighted business
management ana closer harmony
III GK1S 41dNAUA1 > 1I1Nu0Jk tCOs
With scores of good stocks sell
ing to yield from per cent to
per cent, there Is a feeling in
brokerage circles that bona fide
investors soon will begin to accu-
mulate iSuoh issues in quantity.
Among the stocks most favored
by brokers to squirt upward
sharply on .the next rally are
American Can, Electric Power and
Light; international Salt, Public
Service of New Jersey, Consoli-
dated Gas, General Foods,
Vanadinr1i, and United Aircraft.
Hardly q broker in the street
names D list Of favored stocks
without mentioning all of these.
Among those expected to drift
lower are the chemical and alco-
hol shares, and the amusement
stocks, Opinion is sharply divided
on the rails.
International Sale recently ex-
perienced, a sensational advance,
following news of IS per cent
increase in earnings for the first
five months of the year. The new
shares, representing a three-for-
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