Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-22
GAIN IN INVESTMENT DEMAND
NOTED BY MARKET REVIEWER
James B. Clews Finds Stocks Have Been
Showing Underlying Strength-Signs
OF Revival Appear, He Says.

Of places. These are local troubles and
must be cured by local remedies.
Meantime the member bank state
ment, as published from week to week,
shows a steady restoration Of liquidity
In the item Of secured loans through
the progressive reduction OF the total
of that item The general banking
situation looks stronger than for a
good while past. How strong the posi-
ton Of the Federal Reserve banks is
has been shown by the ease with which
they have met the efforts OF the Bank
of France to realize gold in this co1n-
try as illustrated by the immense ac-
cumulattons it is developing through
the conversion of its American bill
holdings into cash.
Progress in Commodity Control
The past few days have also seen
some progress in the matter Of COM
modify control-and in connection with
very difncult phase Of the case, that
Of oil. Following upon the spectacular
closing of the wells in Oklahoma by the
Governor of that State, Texas has taken
drastic steps by adopting far-reaching
oil control bill which viii apparently
give to the executive of the State a
large power of conservation or prora-
ton. These and other like measures
may easily result In carrying the oil
control question over into the next ses-
sion of Congress. at which time the adj
ninistration at Washington has indicate
ed an intention to take hand with Wig
orous conservation measures OF its own.
Some general measure applicable TO the
entire oil territory Is probably needful
in order to render conservation real
and practicable fact in the case. AS
things stand. there has been a distinct
lookup in oil shares and better de-
mand for them has been observed than
for a good while past. The attempt
to control overproduction Of cotton
seems as Intellectual as ever, and 1t
would appear to be beyond the powers
governmental bodies (at least as now
organized) to gain any real results. Much
the same evidently Is true OF wheat, and
there has been no definite improve
ment in the outlook for either OF these
staples. Copper producers are making
another attempt to reduce the output
of that metal, but thus far its success
remains to be demonstrated. Another
small increase in copper metal hold
ings Is fore5een by the experts for the
month of August, but the effect of
it has already been largely discounted
in the prices prevailing for many COD
per shares. Greater stability in the
general average Of commodity prices
indicates that the bottom has probably
win tend upward.
Trend of Earnings.
Results for the first half of the year
are nov so fully at hand that it has
been possible for bankers and others
who habitually make earnings COMPARE
sons to estimate the general results Of
the first part of 1881. They show, as
was expected, broad decline from the
results Of a year ago. The striking
thing about them, however, Is the lack
of uniformity in the showings so made,
and the plain inference to be drawn
from the tables Of earnings Is that a
good many concerns which have had
sound MANAGEMENT and have been free
from governmental overinterference are
able to present good results. Chain
stores. for instance show larger net
profits than In the first half of 1890
and public utilities have in many cases
done very well, IN spite Of a general
shrinkage in the volume OF their bust
ness. The railway results for reasons
which do not call for repetition, are
disappointing. Oil stocks made a dis
CDuThKEl1k 5f1OWGABs h0C W
ton and low prices, while much the
same is true Of copper shares In all
this there is merely the reflection of
past conditions. which have been largely
allowed for. The unfavorable returns
| in many cases are evidently likely TO
prove transitory only, and the fact that
SO large q percentage of enterprises IS
able to show q fairly satisfactory adj
| iustment to the new post-depression
conditions. even at this early date, Is
| promising.
Market Review and Outlook.
| The market continues to be largely
/ dominated by professional operations,
| but In the main has not been acting
| badly. To be sure, the rails are still run
\ ming the gauntlet, but the general run
OF stocks has rather clearly shown
| that there Is no pressing liquidation
/ overhanging them. The Autumn In
vestment demand has not as vet begun