The Washington times., 1930-05-17
Credit and Speculation

Credit and Speculation
Current low rates for call and
time money have failed to stimu-
late speculation in stocks. We
may assume that the so-called
public" is still frightened as the
result of the setback that hit the
market a couple Of weeks ago.
The strangest aspect of the situa-
ton is that, although there is an
absence of stock speculation and
little or no demand for money in
the call market, bond trading con-
tinues dull. The question that
arises is what employment is
being found for the huge volume
of funds that remain in the coun-
try? Assuming that these funds
are not going into the bond mar
ket, and that the return from call
loans continues at low levels, it
is logical to expect that there will
be a new outburst of speculation
before the summer has progressed
far. All that is needed to bring
such wave of speculation is
some indication of an uptrend in
the trade and business situation.
Some market observers feel
that the current buying of copper
metal may be the beginning of a
general betterment of business in
most lines.
Kennecott
There is a difference of opinion
about the expected cut in Kenne-
colts rate. The question is
whether the rate will be reduced
to 81 or SO from the present
figure of SIS a year. Because
Kennecott is a low-cost producers
and, with fair rate of demand
for metal, can afford to pay 81,
it is claimed in some quarters
that there will be only a 81 re-
duction. Recent decline of the
stock has discounted any cut that
may be made.
Speculative rails showed more
action yesterday than they have
experienced in months. Everyone
credited the activity to the influ-
ence of the new Van Sweringen
plans.
Western Maryland
There was no apparent reason
for the turnover of more than
$4,000 shares of Western Mary
land and it's advance of more
than 2 points yesterday. From
Well-informed sources, however,
heard the road will make an an
nouncement soon that will show
any advance in the stock to be
warranted.
New Haven, always is promi-
nent in any advance of the car
riers. Yesterday was no excep-
tion, the stock moving up
points and holding most of its
gain.
Pan-American Petroleum "B"
I called attention again to Pan
American Petroleum "B" which
moved up "a points in yester-
days trading. AS I wrote before
a strong combination has been
formed by two of the Streets
leading operators to put this
stock up to IS or 90. I would ad-
wise purchase of Pan Pete at cur
rent levels. I do not think you
will have an opportunity to buy
it much cheaper.
The Warner Brothers Pictures
pool, which operated with Spectac-
ular success, is reported to have
diSbanded. I understand. how
ever, that the RaSkob- Dupont
group still maintains it's long po-
Sition.
Chicago Great Western
Chicago-Great western pre-
ferred was one of the strongest
stocks on the list yesterday, and
looked higher when it closed at
the days high. This issue was
recommended here some weeks
ago, and has given a good account
of itself. 1t looks like an attrac-
tive purchase at these levels.
Allegheny Corporation and
Chesapeake Corporation, two of
the Van Sweringen holding com
panieS, should pan out couple of
points for traders in the next two
or three sessions.
Eastman Kodak
Split-up of Eastman Kodak has
been the subject of gossip and
speculation for several months,
and a large part of the floating
supply of the stock has been &C.