Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-19
IRREGULAR MARKET
! SEEN BY TRADERS
Recent Movement of Securi.
ties Suggests Narrow
Price Changes.
BY CHARLES r. SPEARE.
Deeial Dispatch to The star.

Special Dispatch to The Star.
NEW YORK, November LIT may
or may not be an evidence of approach
ing stability in prices, but it is an in
teresting phenomenon of this months
stock market that it has been in almost
perfect balance, with the price pendu-
lum swinging upward in the first week
of November and backward an equiva-
lent distance in the second week. It is
a long time since such uniformity In
fluctuations has occurred.
These compromising movements have
brought the average of the three groups
of stocks to practically the level at
which they ended in october. In
seven market sessions the industrial list
rose from an average Of about 104 to
slightly above 119. In the six following
sessions It declined to almost exactly
the level of october 30. There was one
day in which the average loss exceeded
the average gain during the period of
advance. Transactions were at larger
average daily total on the upswing than
at the decline. The public was buying
stocks In odd lots while the market was
rising The professionals were selling
in cautious way.
Railroad Group.
About the same movements occurred
in the railroad list as in the industrials,
I1ldb lllc carly IlSlI1B IIG1lu Va
this group was several times interrupted
while the industrials and public utili-
ties were advancing. However, between
the end of October and the beginning
of the second week in November. the
rails advanced an average of about 615
points. Then they dropped back to the
same level as that reached on the last
business day of october. Unlike the in
dustrials there we're heavier transac-
finnC wl1ilo this x1oc daa1iniYaer
than when 1t was advancing. In the
second, or falling price period, a num-
Der Of railroad stocks reached the low
est quotations of the year. It may be
said that this groups average was af-
fected considerably by the persistent
weakness in New York Central and that
the total transactions in rails were
swelled by the unusual daily turnover
in this stock.
The public utilities have followed the
tndustrials more than the rails. AS in
the case OF the other two groups their
average price, which went up 5 points
from the end of October to November
8, subsequently dropped back to about
the same figure as that at which it had
started. Trading in the public utilities
was materially larger while prices were
advancing than when they were de-
clining. Within this group there have
also been new low prices for the year.
Western Union has occupied about the
same relation to the other members of
the public utility list as has New York
Central to the rails.
Irregular Market Expected.
With the market In such remarkable
balance and speculative interests be-
coming smaller, instead of expanding
as the year draws to a close, it is the
feeling in Wall Street that the next
six weeks will witness dull and irreg-
ular movement in stocks as a whole.
There is not much in sight to relieve
the situation or to encourage specula-
ton in either direction. While there
are undoubtedly weak positions in Ger
tain industrial and public utility stocks
and the influence Of rather immediate
dividend action may be bearish on in
dividual railroad shares it is the COM
mon belief Of experienced men in the
financial district that the market has
been liquidated Of its speculative COM
mitments.
For several weeks there have been
only dribbling sales of securities for the
account of banks. The market has re-
fected quite definitely the falling off in
the number of bank failures. These
were reported by BradStreets today as
numbering only IS, compared with s53
in the previous week and 81 in the last
week OF OCTOBER. Against over 5OU
banks that failed in October, the Mo-
Vember estimate is for less than one
third Of that number. There is very
direct connection between this improved
banking situation and the present de-
gree of stability In securities.
Three Groups Compared.
Comparing the three groups Of stocks
with average low prices In 1880. It will
be found that the industrials are about
81 points below the minimum last year
and the rails are so per cent under the
low of 1880, while the current public
utility average makes the best showing
in a shrinkage OF only is points from
the 1880 minimum. Compared with
their high of 1929. industrials are on
an average of 276 points, or 70 per
cent; rail an average of 144 points, or
20 per cent, and public utilities an aver
age Of l04 points, or nearly 30 per cent.
copyright, 1919