Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-22
ADVANCE IN STOCK
MARKET HELD SIGN
OF TRADE REVIVAL
Gains of Week Accompanied
by Increase in Volume
of Trading.
GENERAL PRICE AVERAGE
NOW HIGHEST OF YEAR
Improvement in Commodity Values
Seen as Portent of Better
Business.
BY CHARLES F. SPEARE.

AAOliCAio o6o VIC III ScllG anu AIIlpcI dIlNS
liquidation in stocks came to an end
Values of securities then had been
marked down much below their real
worth. They reflected the desperate
state of mind of the public and the
universal policy of turning securities
into cash or Government bonds.
That mood passed with the ending OF
the year and will not return. It has
been replaced by one of caution in the
repurchaSe of stocks of the Soundest
type and by the exploitation of a lin
tied group of what are known as tbs
blue chip" issues.
Since the middle of December there
has been an average advance in in
dustrials of between Is and 80 points
in rails of about 20 points and in public
utilities of something less than Is
points. The general average of the stock
market on Friday was the highest OF
the year.
Notable Rises in Leaders.
Taking the different groups of stocks
We find that, in individual issues there
has been notable appreciation in price
since the liquidation period terminated
Dealing only with those shares that have
moved normally-in other words, that
have not been overstimulated by pool
manipulation or by the predicament OF
locked-in short interest-we still have
long list with high percentage OF
gain. In the automobile shares, for in
stance, there is Chrysler with an ad-
vance of nearly go per cent. General
Motors, 40 per cent and Nash, 10 per
cent. In the coppers there is Ana
conda with so per cent rise, Kenne-
colt, As per cent, and American Smelt-
ing, 40 per cent. In the iron and steel
group advances range from 35 per cent
in Bethlehem Steel to 20 per cent in
Vanadium Steel and $50 per cent in
Republic Steel. Even in the active oil
group there have been gains of from Is
to Is per cent.
Coming to the public utilities share
list, VIC find such increases as 100 pei
cent If international Telephone i
Telegraph, 80 per cent in United Cor
poration, rs per cent in American &
Foreign Power, so per cent in Electric
Power & Light. so per cent in North
American, 35 per cent in Public Service
of New Jersey and over IS per cent in
Consolidated Gas. In the rails, Balti-
more g. Ohio has advanced SIS per cent
Chicago g. Northwestern nearly so pei
cent Great Northern 40 per cent
Chesapeake g. Ohio about the same
Union Pacific and Atchison each &c
per cent.
In the miscellaneous industrials the
Improvement is reflected in such in
creases as rs per cent in Radio Corpo-
ration, SIS per cent in Montgomery
Ward, so per cent in Johns Manville
nearly IS per cent in Corn Products
30 per cent in National Dairy Products
and from 20 to Is per cent in substan-
tial issues, such as American Can, East
man Kodak. Union Carbon q Carbide
International Harvester and American
Tobacco.
Course of the Market.
In this same week of last year in
duStrial stocks declined an average OF
10 points But they had enjoyed an
average gain of nearly IS points from
the low level of November ID, 1929
Then, from the end of February to the
middle of April, they advanced an
average of 30 points. raising the total
gain from the 1929 low to nearly 10C
points and canceling about so per cent
of the total average decline that had
occurred between the middle Of Sep
TENDER and the middle of November
1929. The sequel to this was series
of reactions that carried the industrial
list last December an average OF &c
points lower than it had been in No
vember of the preceding year, with rails
35 points down from their former low
average flgure.
Those who take issue with the market
in its disposition to ignore the unfavor-
able elements in the business situation
believe that the advances Of the past
two months have sufficiently corrected
the relation between panic values ano
real values; also the important change
that has come about through an i'm
provement in so-called technical mar
ket status. They were confident early
in January that stocks had been thor
oughly liquidated and were entitled tc
a substantial advance.
Such an advance has now occurred
It has steadily progressed in the face
of corporation reports for 1880 thai
were even worse than had been antlci-
pated and in a growing increase in the
number of dividend changes that reflect
either inability TO pay these dividends
or frank uncertainty on the part Of
arrangements as TO the outlook fol
earnings during the remainder of this
year. They also take into account that
the public that makes big stock markets
| is still very poor or disposed to keep its
| funds in savings banks or in short-tern
securities. Primarily, however. it finds
! little encouragement in the immediate
! business situation for following a gen
eral upward movement in industrial OF
| railroad stocks. AS the Spring season
approaches there is rot yet enough IL
sight TO verify earlier predictions thai
! industrial momentum will greatly in
crease in the next few months.
Wall Street As Prophet.
It is true that Wall Street tradition
ally anticipates a revival in trade some
distance ahead, following a long perioC
of depression 1t has an uncanny In
tuition of what is taking place under.
meath the surface of business and fire.
quently reflects this with surprising &C
curacy. It may be doing the same thtni
again. 1t is on record that there ha
been an increase In the number OF bias
furnaces in operation lately. A re
sumption in blast furnace activity ha!
| always been an indication that the turn
in the industrial tide has come. Ger
tain commodities that had been equal,
demoralized with securities, notably cot
ton and copper. have been advancing.
Steel production has moved steadil
forward since the end of December ant
is today about as per cent greater thar
at its lowest point. There has beef
lately a sudden expansion in automobil
production. Silver seems to be on tn
point of being stabilized, with all tina
this means to the countries In the Fa
East as well as to Mexico and Soutl
J America. Car loadings are making bet