The Washington times., 1935-01-07

Manville, were <a@>>>@'
run by pros Lewis Haney
poets of Government operations.
Cerro De Pasco and several other
metals enjoyed an inflationary
squirt.
The preceding high" of early
December has now been reached
by the averages, and a little
hesitation is apparent. Consider
able "profit-taking"' has gone on.
But the general attitude seems
to be one of waiting to see"
rather than going short, so no
severe reaction is indicated.
Evidently many have decided
to continue the show OF Co
operation" between business lead
ers and the New Deal Administra-
ton, so the Presidents chat to
Congress was taken without the
batting of an eye marketwise. 1t
spoke of a New Order" over
privileged classes, Government
spending to make everybody
happy, and profits limited to a
decent livelihood" earned by
"Work."
Market operators, wever,
seem to think such phrases may
be as elastic as the Constitution.
But it may be that this latest
bulge has been made to facili.
tate unloading. AS 1 say, profit
taking has been obvious, and
unquestiOna0ly some large trad
erS have the idea of getting out
and staying out for q while, un-
til socialistic and inflatiOnary
factors can be sized up.
An examination of some charts
suggest numerous questions. For
, example, what happens to U. S.
Steel whenever it gets above 80?
Will it have to fall back to the
gap" left at 81?
Did Du Pont make top on
Thursday? Will SO be maintained
as support level?
Who were taking profits" an
American Can on Thursday?
. Can Eastman Kodak keep up
the pace, or is its faltering ex.
actly at the November 26 high
significant?
Didn't the bulge in American
Telephone seem to terminate on
Friday?
: What happened to Union Paci.
9tc on Friday, If it didn't stub its
toes?
And why can't it hold above
109?
Why can't Atchison make the
grade above 55, and how much
longer will it run in the trading
range between So and Sc?
I am frankly unable to form
and decided opinion as to the
near future movement of the
market. Perhaps a good many
Others feel about the same. In
that event, maybe one should
stand aside for awhile.
"The true temper of Congress
iS still unknown. The Admins
tration's budgetary proposals
have not been made. The labor
problem has not shaped up,
either as to the next moves of
organized labor, or as to how
far the Government will 20 in
making work." We do not know
when the next wave of initiation
Will come, nor what escapes will
be chosen by those who have
money.
But We do know that further in.
1latlon is more probable than
ever, and that the delay and diff.
ficulty in getting it going are sure
, indications that once started it
will not be controlled.
with things going on as at
present, the only alternative is
some form of collectivist dicta-
torShip, and then the value of
any private property would be
questionable).
So I can see nothing better
than common stocks Of the new
public utility types (unless it be
some real bargain in land or
real estate). If the market re.
:: acts here, I would buy on the
next period of sterilization. If
1t now merely turns irregular
and holds, I would buy as such
ability to stabilize becomes evi.
dent.
An immediate further rise
of magnitude seems unlikely
at the moment, but 1 would
hesitate to follow one up
should it materialize.
/ would stick to medium
priced industrial" stocks of
proved earning power, paying
moderate dividends.