Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-19
STOCKS MAY FACE
TEST DURING WEEK
Bear Element Is Reported
Planning Another Drive
on List.
BY CHARLES w. STORM.

Editor the News Service of Wall Street
Special Dispatch to The Star.
NEW YORK, January l9.-The acid
test Will be placed on the general stock
market this week by the professional
bear element, 1t has been reported.
These bears intend to test the lowest
prices made on December is, last.
by launching a concentrated attack
against the pivotal stocks. If the drive
Is successful, it will be considered evil
| dence that the really important people
In the financial district do not believe
the stock market has reached a base
from which it should advance.
Some of the professional bears began
late Saturday testing the general list
with substantial sales of Allied Chemi-
cal, Bethlehem Steel. American Can
and Westinghouse Electric g. Manufac-
turing. Their selling came just in the
midst Of rally and resulted in a re-
versal of the trend. Offerings con-
tinued light but were made up to the
close of trading, final prices being
around the lowest.
Ford Motor Factor.
The attack of the bears followed thu
announcement of reduction in prices
of from SIS to $45 per car by the Ford
Motor Co. This was seized upon by the
bearish element as an indication that
the outlook for the motor business was
poor. This, however, seemed to be off,
set by Edsel Fords statement, which, In
part, said
Reports we have received from our
branches and dealers throughout the
world lead us to believe the automobile
business will show steady Improvement.
Since the automobile business is basic
one, any betterment in 1t cannot but
have a beneficial influence on business
generally"
Pressure on American Can.
Resumption of substantial selling of
American Can on the expectation that
the prices of cans will be reduced in the
near future was witnessed In the late
dealings. One big professional trader
who has been bear trader for the
most part for many years is reported
to have been steady seller of the stock
recently.
Phillips Petroleum was offered at the
expense of price throughout the short
session, and its steady depreciation is
considered by the Street as indication of
a probable reduction or omission of the
dividend now being paid.
Pool operations were in full swing.
while the pivotal stocks were headed
upward, but were sidetracked as soon
as the big stocks began to show the eff
fectS OF selling.
Hopeful Feeling.
Even If the professional bear traders
succeed in causing a further decline in
the prices of the so-called high-priced
stocks, general feeling in the Street is
that the low-priced issues will give but
little in sympathy, owing to the steady
investment demand for the latter, which
Is resulting in the withdrawal of certifi-
Gates from the Street and which, in the
end, will act as a base from which con-
structive campaigns can be started. 1t
is also believed that lower prices for
the low-priced stocks will unloose again
substantial volume of investment buy
ing, such as appeared at the December
Is low quotations.
There has been a material change for
the better in a number of directions
since the registration of the December
16 low prices. This is particularly true
with regard to the banking situation,
which was never in a more liquid and
sound condition than at present.
There has also been improvement In
general trade and industry, as indicated
by the business indices. Some of the
bearish element contend that factory
inventories may be low, but the per-
sonal inventory is high. This latter con-
dition is doubted
(Copyright, 1881, by North American News
paper Alliance)