The Waterbury Democrat., 1931-05-29
Week Witnesses No
 Change In Market
Vigorous Rally, However, Seen in Artificial Effort t
 Force Shares Down to Rock Bottom

to offset losses. Significant advances have been shown in carloadingss rec tail trade, automobile production and electric power production. Com mercial failures have been lower both In numbers and in total iiabii- ities. President Hoover's committee on emergency employment finds the value of buildings and construction contracts steadily improving with fofal last week amounting to $155,- OOO. 900. while cabinet authorities are reported as finding a general condition of improvement.
 In these circumstances, 1t is nat ural that the general relationship between the market and business should have become the subject or much discussion and difference of opinion. One group of observers IS disposed to contend that market prices, at the time of the 1929 break. responded to a previously noted and announced recession of business activity-their opponents holding that decline in business came subsequent to the market re- cession and was traceable to the de- cline in investment values. Eminent authorities are of the opinion that there had been serious over-expan- sion in business prior to 1923. owen Young, for example, Tn his re- cent testimony before the senate banking subcommittee called atten- ton to the fact that, at the begin ming of 1929, ''the speculative furor was carrying business along with 1t and 1t would have been very much better for business had 1t been checked somewhat in 1928." How ever this may be, both trade and in- yestment levels have receded re- markably and the recessions that have occurred would seem to have supplied a. complete remedy. So far an the stock market is concerned, such recession has been fully two to three times as great as the reduction of business, as may be seen from study of the shrinkage in almost any group of standard shares com. pared with 1929 quotations. Yet business itself Is now admittedly turning toward better things. on either theory, the drift of the mar ket ought to be decidedly upward, Long-range considerations have led many investment authorities to foreshadow a decisive upward turn in August, but there are not few who now indicate the coming month of June as the probable time for decisive alteration in trend.
 Fears of artificial effort to put stocks down through short selling or in other similar ways, are usually the precursor of recovery and there is much to confirm the belief that vigorous rally is due. The question who is really taking the offerings that are now being thrown on the market is pertinent, and there IS some ground for the belief that ac- cumulations is taking place at the hands of large investors who, of course, do not advertise their plans of action. Just when the much hoped flor advance which will her. aid the final shifting of stocks into strong from weak hands will occur, remains to be seen. It may not take place for some little time but IS likely to come suddenly and with It, tie or no warning when it does oc- cur. Meantime the market situation offers some unquestionable bargains to buyers who are willing to exhibit even a very moderate confidence in market prospects and the business future.