Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-08
Market Waivers Under Pres
sure of Selling by Profess
sional Traders.
INCREASE IN BUSINESS
CONFIDENCE APPARENT
Preference of Investors for Low
Priced Shares Is
Exhibited.
BY CHARLES F. sPEARE.

BY CHARLES F. SPEARE.
Special Dispatch to The Star
NEW YORK, February There has
been a wavering in the prices Of
securities this week and in market
sentiment. This Is to be expected in
situation that is surrounded by many
unfavorable influences and is still suf-
fering from the shock to confidence
given last year.
However, the business world and the
investing public are showing more
stamina. They take fright less easily
They discount idle rumors. They ex-
hibit some initiative rather than
absolute inertia. More men each
month are willing to predict that the
bottom of the depression in this country
has been reached.
The stock market itself supports
this view in maintaining most OF the
advance made since December. 1t had
good excuse for breaking when govern
ment bonds and high-grade corporation
issues were rejecting the soldiers
compensation debate.
Guerilla Warfare Resumed.
Where dents have been made this
week in the stock price list they have
been put there by professional sellers
The actual holders of stocks have not
been liquidating. Guerilla warfare on
the floor Of the New York Stock
Exchange has been reopened after a
six weeks truce.
The obstinate strength of the market
is the more remarkable inaSmuch as
1t had had much to contend with this
week. Many dividends have been re-
duced or passed. Among them have
been several of the Standard Oh
companies. The progress of the iron
and steel trade has been checked by a
withholding of orders from industries
depended on to advance production.
The terrific force of the depression has
been indicated in corporation reports
for December quarter of 1880 as well
as for the entire year. Earnings on
stocks have had to be measured in
cents instead of in dollars.
Commodity prices have been railing
with the wholesale average now about
20 per cent under that Of II months
ago. Peru requests a moratorium on
her external debt, of which large
portion Is held in the United States
In the early part of the week dealers
in Government bonds complained that
they could not secure bids for them
New corporation issues were quoted
from 10 to 3 points of the list price.
The resistance to this array OF I'M
favorable conditions can only be ex-
planned by the liquidated state OF the
market. It needs to be let alone. 1t
should not be allowed to be provoked
into another decline by those acting
primarily from selfish motives.
Extra Session Is Bugbear.
It is a curious commentary on our
form of government and on the ability
CT those who represent it in Washing
ton that what business most fears Is
an extra session of Congress. Like the
stock market, the country Graves relief
from agitation, controversy and cam
paigns that have no constructive pur-
pose. The measure of recovery in bust
ness here in the Spring months will
depend on whether Congress continues
in session then or whether 1t adjourns,
permitting Mr.. American Business Man
to work out his destiny in his own way.
The sensible suggestions of Owen D.
Young this week with reference to the
soldiers compensation certificates con-
trast with hysterical statements in
other quarters. His recommendations
for banking reform are also deserving
of serious consideration. If the public
commercial banks, it must be assured
that the full amount of protection be
given these deposits and that such ir-
regularities as are daily being published
in connection with the Bank Of United
States investigation be detected and
brought to light before they impair
bank assets and cut down the value
of deposits 40 to SO per cent.
Fixed Trusts Absorb Stocks.
Two phases of the stock market that
stand out conspicuously are the prefer
ence for low-prlced dividend shares and
the steady absorption of stocks by the
fixed trusts. The prevailing argument
against a likely advance in the market
is the sluggishness of the formerly
popular industrial leaders. This Is not
so strange when the earnings OF COM
panies such as General Electric, United
States Steel, Bethlehem Steel, Westing--
house Electric and international
Harvester are analysed. The common
belief is that these stocks have not
been debated to the same relative eX-
tsnt as those in the lower price brackets;
further. they have not the same attrac-
ton from the standpoint of yield.
(Copyright, 1919