Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-16
WEEK FEATURED
: BY BULL MARKET
Upturn in Stocks and Bonds
Attributed to Idea Offer
ingS 0verSoId.
BY CLAUDE A. JAEGER,
Associated Press Financial Editor.

NEW YORK. August 15.-An expert
mental bull market in stocks developed
this week in Wall Street.
While there was little in the weeks
business news upon which to base such
a move, professional traders sensed that
the market had become overso.d, and
found the time ripe to discount the
approach of the seasonal upturn in gen.
eral trade which normally becomes pro-
nounced in September.
The week started inauspiciously with
a collapse of the cotton market in re-
Spouse to the Governments crop esti-
mates placing the yield at more than
Is 600 900 bales, which threatens a
record breaking carryover for the year
of possibly $4,000, 900 bales.
Commodity prices in the aggregate
appeared to be pretty thoroughly de-
iated, however. The Governments
estimate of the wheat crop placed the
yield at 81 per cent above last year,
but the market responded with only a
slight sag.
Gains Impressive.
On the whole, professional traders in
Wall Street felt that detiation had been
carried to extremes unjustified at q
sAAAAC EACAA A0AAAk OA8A4o Va NAAL NAhLDtAAAi
pickup in business are already appear
ing. At any rate, the bidding up of
stocks was the most impressive since
the Hoover debt plan rally of late June.
If the bulliSh activity bore the ear
marks OF those premature efforts OF a
year ago, and again last February, its
proponents argued that the depression
has now run on for two years, going
beyond the span of most cyclical de-
presSions, so that the lapse of time
alone should have brought us nearer
a real turn for the better. 1t Is &C.
knowledged that no violent rebound in
business is expected this Autumn, but
1t is felt that most signs and portents
favor the belief that the worst has been
seen.
Early in the week, railroad securities
both stocks and bonds, were persiStently
and distreSsingly heavy. The average
for the railroad shares was saved in
the nick of time from breaking through
the June 2 low to new bottom foI
the bear market, and the rail bonds
| were supported toward the close OF the
week. The freight car loadingS report
for the latest week showed rather SUBJ
; stantial improvement, but on the whole
there was little to account for the
change In trend. Rather formidable
1
railroads efforts to get an increase in
| freight rates.
Improvement Abroad.
The foreign situation continues tc
show Improvement, although il Is still
/ worriSome enough to make internatlona
bankers rather guarded in their expires
sions of opinion. Particularly en-
| couraging has been a substantial rally
| in German bonds. The budgetary cr1si:
| in England is fair sample OF the Serl.
Gus problems that have to be dealt
with, but the decisive measures which
are apparently being taken have beer
/ lauded in Wall Street, and have bracec
| the London securities markets. The
| Cuban fare up has been viewed calmly
| here.
The committee of experts chosen t.
/ agree upon the technical details OF put
| ting the Hoover moratorium plan into
effect has completed its work, but bank
ers are stiIl wrestling with the problem
/ Of maintaining the $1,000, 000, 900 III
1 short-term credits in Germany. The
! American, British and Dutch bankers
are now in substantial agreement on
| the problem.
/ The advance in the stock market, a.
measured by the price index of 80 IS
| sues. amounted to nearly points. The
index Of 30 rail issues alone, however
/ shows q net gain for the week OF only
about points. Despite the recovery
in bonds late In the week, the prict
index OF 80 issues showed o net los:
) q zoEaea n ~ . uaA