Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-22
Brokers' Comment

NEW YORK, August Commission
house adviceS to customers today re-
flected considerable gloom over the
sharp setback in the stock market yes
terday. Some houses. however. still
felt that the major trend was upward.
Extracts from market letters follow:
Hornblower a. Weeks-we would for
the present postpone new commitments
and believe that traders are warranted
in tightening their trading lines during
rally periods until the probable effects,
marketwise, Of renewal of the Discus
sion OF steel wage reduction can be
digested. Despite the selling Yesterday,
which carried the market into new low
ground on the current move, there was
nothing in the performance of the mar
ket the past week to indicate O reversal
Of the main uptrend which got under
way a week ago last Tuesday.
Jackson Bros, Boesel g. Co.-Iooking
ahead to the Fall months, nothing
looms on the surface to change the
view that moderate improvement In the
stock market may be expected. The
slightest evidence Of any infiationary
move, If sponsored by the Federal Re-
serve, would certainly be reflected by q
sharp squirt in commodity prices. This
In turn would logically be followed by
general Improvement in the security
markets. Owing to the new outbreak
of banking troubles In various parts Of
the country, 1t is natural to expect q
lun in constructive operations IN Wall
Street pending complete restoration
OF public confidence. This hull comes
at q time when the short interest is
quite large and growing steadily. We
see no probability Of q Wide-oDen break
under these circumstances.
Charles d. Barney Il Coon the
basis of this evidence we believe II &
well to be skeptical regarding the oues-
ton whether the constructive campaign
VIII be pushed any further. Certainly,
II the selling yesterday afternoon was
primarily a drive against the recent
leadership, the market should snap back
rather impreSsively If the campaign
for further recovery Is still intact. We
are inclined to believe that for the time
being at least this campaign has been
abandoned. Inasmuch as we have re-
Gently suggested trading commitments
based solely on the evidence of renewed
leadership, we would liquidate such COM
m1tmentS unless the market shows an
immediate sharp rebound.
Hamershlag. Borg IL Cove should
not be surprised II the market had some
SOEL Oh CeCkixllCai rally WlLn1n the next
few days, but are impressed with the
fact that q sustained uptrend Is seldom
experienced In stock prices unless 1t has
been preceded by an improved bond
market. The trend of bond quotations
has not yet given us such signal.
Smith, Graham &c RockwelI-The
fundamentals contain little on which to
base a hope for higher prices, but do
contain much that gives reason to ex-
pect the market to go lower Rallies
should be small. Would sell when they
occur,
w. J. Wollman & Co.-while extreme
care Is advisable in the making of
commitments, we still believe that the
present is an opportune time to pick up
stocks for long pull investment, particu-
larry those which by their steadiness
seem to be selling at levels well In keep
ing with even present depressed con-
ditions and in which improvement in
general conditions viii quickly be re-
fiected. We refer particularly 70 the
oils, many of the coppers and some Of
the chain store stocks, whose unit sales
are improving despite slight falling
of In gross receipts due to lower prices.