Detroit evening times. (Detroit, Mich) 1921-1958, 1941-07-14
Public Buying
Felt As Market
Volume Scars
BY LEWIS HANEY

Professor or Economics, -. y, University
The stock market last week had
regained all the ground lost since
January % this year. Despite
Greece and Crete abroad, and ex-
treme demands made by labor and
farm groups at home, the average
price OF stocks is right where it
was at the end of 1910.
The composite averages gained
from Ia to 2l2 points during the
week on total volume of over
100000 shares, the largest for
many weeks since last November.
As might be guessed. there were
distinct signs of public participa-
ton" Ordinarily this would be a
danger signal, and it may well
serve now as reminder Of pre-
vious speculative Sprees. For a
while, yet. however, tho market
temperature seems unlikely 10 be-
come excessive. Most of the buy
ing is probably still coming from
persons who have been through
the fire.
On the whole. il seems 10 me
that The bullSh arguments still
outweigh the bearish ones. and
that the market, with more or
less irregularity, is likely 10 go
higher still.
Undoubtedly, war news still
plays a part though apparently
not so predominant a one as for
merly. and such news may not
develop favorably. 1T turned
more doubtful at the end Of last
week..
The demands OF the administra-
ton for huge government spend
ing seem 10 know no limit. and
such demands viii from time to
time, bring proposals for more and
more drastic taxation. Tax uncer-
tainties will remain a drug on the
market.
The well known tennency TO dis
eliminate in favor of farm and
labor pressure groups is all too
evident, and the action OF the
House in striking out measures
designed 10 prevent "defenSe"
strikes is symptomatlc.
Consumer goods industries arc
bound 10 suffer as a result of
priorlties. and Will he more or less
disturbing 10 business.
Finally II IS 10 he noted that
the volume Of trading subsidized
quickly on the rise IN stock prices
Some tendency 10 trade in low
priced speculative issues also APP
peared
But against these points. il can
be argued that the tendency Al
Washington is clearly 10 rely on
borrowing rather than taxation
As usual too. the farm and labor
preSSurcS somewhat Offset each
other. The administration found
means 10 act effectively in the
North American strike.
And there are numerous bullish
arguments
The market bore proft-taking
very well, and the irUegularity al
the week end should strengthen
the technical position.
Signs Of roiational activity and
group strength warrant hope that
further progress may be made IN
the rise.
Nattra11,. ,,,,,,,. ,,,.,r.,t,.1 I'll.
buyers are thinking tina, they have
missed the boat. and they Will now
come in on any small reactions.
thus supporting the market.
The predominance NJ now highs
for the year over new lows has
become pronounced
The industrialS went through
10 a new high closing figure for
the current move.
Some good leadership appeared
including Union Carbide Johns
ManVille, Standard OF New Jersey
and Amersda. This suggests that
idle capital is coming in.
Initiation is not only gaining in
actual effect, but lis gains are now
somewhat beIatedly being recog-
nized by those who have previ-
ouSly denied them Ever. Henderson
says that prices will inn Gold
mine stocks pcrked up last week.
As commodity prices renewed
their rise. corporation bonds
weakened. as is 10 be expected
under imitation.
The voters arc SGT on spending
their growing money incomes.
Who In this administration can
say no 10 them with straight