Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-02
OF PUBLIC
TOMARKET IS SEEN
Brokers Review Finds Ample
Buying Power Indicated in
Months Activities.
Special Dispatch to The star.

6peClNl OlSpaLen 70 the star.
NEW YORK, February 1.-The fact
that values have been able to present
such firm front, in the face Of reali-
Zation by bankers and others, indicates
the existence of ample buying power.
says Henry Clews & Co, The month of
January has witnessed the disposal of
nearly $400,000.000 of new issues, and
this taken in conjunction with an esti-
mated reduction of holdings by banks
In the sum of $3.50 900 ,000, shows that
the capacity of individuals and invest
ment institutions to absorb securities is
| very satisfactory. The question how far
banks will continue q process of liqui-
dalton, of course, remains to be an.
swered, but 1t Is entirely possible that
the sales OF securities which they have
carried on during the month of Janu-
airy will not go very much further, de-
pending upon the actual condition of
the institutions and the extent to which
their business customers call upon them
Tor commercial accommodation. With
the Federal Reserve system freely alb
sorbing Government obligations and re-
leasing credit when needed, at very
moderate rates, there need be no doubt
that any further liquidation will be
limited to actual requirements. Failure
to reduce the Bank Of England rate has
been due, 1t is believed, entirely to the
recently rather softer tendency of
sterling, which has deferred the ex-
pected action. In the opinion of local
banking authorities, there is no reason
why the reduction in the reserve rate
which has been expected for some time
past should be made to wait upon action
in Great Britain, and a lowering of it
is accordingly thought likely as q factor
In the early future
Mergers and Read justments.
Announcement of the terms of the
large steel merger which has been pro-
vided for. through the consolidation of
the Republic Iron & Steel Co., the Gen.
trail Alloy Steel Corporation, Doner
steel co. and others, brings to a close
negotiations which have been in prog
reSS for some time, and holds out to
stockholders the prospect Of q profitable
exchange OF securities. Other console
cations and exchanges are also under
way, among those pending being the
offer made by United Gas to exchange
its stock for Southern Gas, while Tide
water Associated Oil has renewed its
offer for the stock Of Associated OH,
good during the present month. Nego-
tiationS for the accomplishment Of
other mergers and consultations are
under way, and It is likely that as
result Of the arrangements growing
out OF them, various issues viii assume
different position in the open market.
The prospective settlement Of the major
troubles Of the film Industry through
an agreement between the conflicting
interests. centering around the Fox Film
Corporation, Is also believed likely to
avoid possible enbarrassmentS In other
nrancneS OF the same group. and con-
SonnAnflU IN ali -
shares in that division In the position
they now occupy. Weaker units are
| expected to have the opportunity Of
consolidating with the stronger upon
terms which may prove advantageous
by putting various issues upon q basis
more assured than that which they have
occupied heretofore. All this process
OF rearTangement and readjustment is
laying the foundation Of q very much
more vigorous and satisfactory market
for coming months, and Is to be re-
garded as piece Of foundation work
essential to the rebuilding of satisfac-
tory conditions.
Market Review and Outlook.
.UnqueStionably there is an increase
OF public interest in the stock market
ana IN investment conditions generally.
Inc tendency toward stronger prices
"-~~ aS Va 40OC 1lhOC 1LSCn IClJ is
responsible for some part of this growth
what has operated more to hold back
activity than anything else, has doubt
less been the fact that many persons
nave questioned the extent Of imme-
date prospect for appreciation. The
optimistic view that is being taken by
capable authorities with reference to
the business outlook should diSpel this
attitude OF mind, and 1t should be re-
membered that, taking the market as
whole, the opportunities to buy which
now present themselves are not likely
to be repeated. While it Is quite pos
Slple proht-taking sales may be en-
situation to be regarded seriously: in
deed, 1t would be easy to lose, as a
permanency, the openings which now
present themselves in many branches
OF the investment field by holding or
TOO long and displaying an over-cautious