The Washington times., 1930-01-18
STOCK MARRE. |
LOSSESLA|D
TO BEARS
BY w. S. COUSINS
4.

NEW YORK, Jan. 18.-Prac-
tically all sections of the stock
market lost ground this week as
the result Of steady and persist
el1t selling, some Of it originating
In the camps of the bears, and
some representing the final hqui-
dRtion of hopes and prospects
that have been chung to since
the break In the market last year.
Responsibility for most Of the
unsettiefnent In the markets this
week was laid directly at the door
OF the bears, but the scant sup
port given to the favorite stocks
this week by the bulls and the
almost complete withdrawal of
investment buyers and bargain
hunters, made the task Of the
professionals much easier.
When the blow fell on Mont
gomery Ward, Radio and other
Vulnerable spots, prices dropped
away to the lowest range of the
year, though Of course the losses
We're small compared with re-
corded reactions Of the last year
or two.
Notable for Promise
Once again the industrial and
business week was notable more
Tor what it promised than for
y actual performance. Though ope.
ratlOnS OF the steel mills have
peen speeded up to meet the de-
mandS OF important consumers,
me same uncertainty prevails in
the motor car, textile, building
construction and other lines as
before the turn Of the year and
BUYERS OF stock are in the position
o. taking nothing for granted.
Ihey want to be shown"
Wnere the best prospects for
pfQfltS lie, and hence the present
market has been one Of extreme
selectivity, with the utilities and
Ine highest grade industrials
usually preferred. Motor stocks
We're again unsettled and oils
1l0pped on the resumption of
price cutting In crude oil and
gasoline.
Where, rallies occurred in the
faVorite iindustrials and utilities,
the effects were of brief duration,
because Of the general policy of
the bulk of professional traders
20 sell stocks on rallies"
The ranks of the bears have
been swelled by the addition of
thousands Of small traders, who
are following the line of least
resistance and selling stocks be-
cause the big fellows are doing
IT,. The result has been a con-
siderable addition to the outStand-
ing short interest, which in
time may be driven to cover.
at Pets are shown Up
Extreme weakness Of some Of
last years speculative pets laid
bare few of the market ex-
ceSSes of the new era" period.
Montgomery Ward at 1914 was
sold at the equivalent of 69h
for the old stock, which in the
frantic bull market of 1929 was
balooned as high as $446 a share.
The Radio, which topped $500
. share, sold this week at the
equivalent of $3.50 a share.
holster radio almost passed from
the picture when the stock de-
clined to 21s, compared with
80 a year or so ago and CroSley
radio bid at 1875 last year. passed
over the tape below IL.
Correction of speculative ex-
cesSes Of this kind is the most
painful part of the process Of the
Socalled speculative cycles, a
fancy name for the shearing of
the speculative lambs through
the passing to them of stocks
kited to unjuStified heights in a
period of wild bull markets.
Manipulation played the major
role in many of these skyward
movements, and SPECTATORS have
awakened to find themselves
!. loaded up at high prices with
stocks of whose real values they
are densely ignorant.
Week Opened Tamely
The week opened tamely
enough, with transactions on the
big board down to approximately
1900 900 shares a day, the small
est daily turnover since mid-sum-
nier of 1928. In these dull days
stocks moved around in extremely
narrow price ranges, with outside
investment and speculative de-
|, mand lacking, though some of
the brokerage houses reported
bargain-buying of representative
higll-grade shares.
This withdrawal of buying sup
port furnished the best clue to
the bears, who work on the as
sumption that a market which re-
fused to rally should be pushed
down into the dumps.
The money market was true to
form, call, money declining to 4
per cent and an easier tendency
!. In the time money markets. This
was doubtless a factor in the
favorable reception accorded this
week to $500, 100000 in new bond
offerings. the largest weekly vol
unne in. peace-time history.
There was an insignificant in
crease in the volume Of brokers
loans this week and narrow
changes in prices on the prin.
cipal commodity exchanges.
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