Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-09-25
Investors and Spectators
Are in Buying Mood, With
Sentiment Cheerful.
REPORTS OF INDUSTRIAL
RECOVERY ARE APPEARING
Wall Street Impressed by Expan-
sion in Retail Sales During
the Past Week.
BY CHARLES F. SPEARE.

BY CHARLES F. SPEARE.
Special Dispatch to The Star.
NEW YORK, September 24.-It Is
apparent from the maneuvering in the
markets this week that investors and
SPECTATORS alike have a strong urge
toward buying securities.
The abrupt and extended declines in
stocks and bonds the week previous
have been partially recovered In the
face Of conditions among the sensitive
commodities and In the industrial world
that were not favorable to either of
these issues. This emphasizes the
positive and probably permanent throw
ing of Of the apprehensiveness that
was the universal state Of mind a few
months ago and points to determine
ton to regard economic influences as
promising even though they may be far
from satisfactory.
Some Buyers Waiting.
There are many still skeptical Of the
markets and yet to be convinced that
a change Of sentiment Is, of Itself. a
sufficient basis on which to maintain a
price level 50 much higher than that
Of July This means that there are
individuals and corporations that have
stood aside and watched prices advance
and that expect to be able to buy stocks
before the end of this year at mate
rally lower prices This has always
happened after every long period Of de-
cline. There is difference now, In
that this is presidential year.
The debatable point among those who
are the passive observers Of day-to-day
fluctuations is whether their opportu-
nifty will come before or after the cleo
ton. The argument is that If stocks
retain the ground they have already
gained and proceed even further during
October. there must be q substantial
readjustment In prices after the cleo
ton, regardless of which party is the
victor to the actual business conditions
at that time. On the other hand, a
radical decline prior to the election
might enlist the support Of those who
are now inactive and avoid an after
election slump, whatever direction may
be taken by the popular vote.
Evidences of Recovery.
While sentiment Is still the controlling
influence in market fluctuations, 1t Is
less so than 1t was in August, for there
have been numerous indisputable evil
time. None, except those In textiles,
has been spectacular On the other
hand, there are many which do not find
expression except in trade journals, but
which, in the aggregate, have had a
sustaining influence on employment and
on pay rolls the past month They do
not by any means Offset the inertness In
the iron and steel and automobile trades,
and they have not been sufficient to
maintain the commodity or wholesale
price levels Of fortnight ago. They
have, however. effected a slight change
In the purchasing power of the public,
which is reflected in larger retail sales
These. in turn. have started a scramble
to replace long-exhausted stocks of
readily marketable types of merchan-
disc.
1t is worthy Of mention also that. pre-
ceding one Of the monthly periods of
largest dividend disbursements of the
have felt compelled to omit or reduce
their rates. The most important pend
ing development of this nature has to
Steel preferred to be acted on a month
hence. Uncertainty regarding this was
responsible for the violent decline In
the stock early this week. and a subse-
mood of wall street Changed overnight
from one of anxiety to that of conf
dence.
Rail Shares In Favor.
The friendliness shown by BUYERS OF
securities to railroad issues continues to
be an outstanding market feature.
There seems to be general willingness
to make the most Of every favorable
incident that arises in connection with
the transportation industry and to
capitalize ,Iz it. It is felt that the month
point Of the depression for car loadings
and for the earnings on railroad prop
erty investment. Traffic has unques-
tionably begun to expand. Car load
ings are exceeding weekly seasonal
dozen carriers Is still in delicate state
Two Of them may have difficulty in
meeting this years maturities. All,
however, have gained immensely in pub
lie sympathy, so that today there is a
willingness to give them reasonable as
sistance in the working out of their
problems.
Little attention has been given In re-
cent weeks to those affairs abroad that
played an important part in creating a
bearish attitude toward securities last
Spring. Generally speaking, political
conditions in Europe are net much bet
ter than they were month ago. but
show an improvement where financial
considerations are uppermOst. The
bond conversions by Great Britain and
France will relieve both countries Of
heavy interest charges and so improve
their budget situation There has been
some discussion this week Of the date
when Great Britain may return to the
gold standard and a disposition to
credit the report that sterling will be
revalued at around $3.50.
Copyright, 1922