Evening star., 1944-12-31
THE SUNDAY STAR, Washington, D. c.
SUNDAY DECEMBER g. ls4@
Stocks Reach Peaks
Since 1897 Despite
War Uncertainties
BY BERNARD s. O'HARA.
Associated Press Financial Writer.

NEW YORK, Dec. 3o.-The stock
market continued on the upgrade
through 1914. reaching the best av-
erage price levels since September.
1887. in the face of three multibil-
lion-dollar war loan drives, turbu-
lent presidential campaign and
series of peace Scares."
1t was continuation of the up
ward spiral which started in April,
1912, amid the doubts and fears in
cident to the Nations feverish prep
arations for all-out war in answer to
Japan's attack on Pearl Harbor a
few months before.
Much of the markets progress
was achieved on two spirited moves,
one at mid-year, the other in the
first half of December. Factors COM
monty associated with these two up
swings suggested, at least on tho
surface, some inconsistency in ap-
praisal of events.
Supply of Idle Money Large.
In early July the market estab-
lished a seven-year top on a wave
of buying which Wall Street sources
said was prompted by the successful
launching of the Norm andy inva-
sion. In contrast, the December rise,
which carried the averages well be-
yond the July peak on the heaviest
volume of the year, derived momen-
tum from admissions Of Allied mill
tary and government authorities
that earlier forecasts of Germany's
defeat before the end of 1914 would
have to be revised.
In the first months of the year
and between the two major up
swings the market was governed by
crosscurrents of speculative action
and cleavageS which at times made
so-called peace" shares buoyant
while depressing the securities Of
companies most heavily committed
to war production.
But drawing substantial support
from the vast supply of idle invest
ment money-a condition accentu-
ated by huge Government spending
for war-eveFy period of wavering
brought fresh flow of speculative
and investment buying sufficient to
maintain the forward trend.
Average Up 9 Points.
Measured by the Associated Press
60-stock average the years rise
amounted to about points over the
index of 495 at the close of 1943.
OF the component groups indus
trials and rails excelled with an
average rise of approximately 10
points each. The utility composite
climbed around four points.
Share transactions on the New
York Stock Exchange were roundly
267 400 900 shares for the year, COM
pared with 278,741,76 in 1943 and
l25 SIT 1868 in 1912
The peace scare that troubled
the market did not have such vio-
lent repercuSsionS as in July of 1943
when prices broke sharply on the
Italian surrender and again the fol-
lowing November on the signing of
the Moscow pact. but they neverrhe-
less indicated a good deal of invest
ment caution over industrial recon-
version problems. The vital Ques-
ton was industry's ability to change
over to peace without taking heavy
losses under contract termination,
inventory liquidation and general
| transition costs.
Legislation Is Helpful.
In the final few months Of the
year reconversion was seen in
somewhat more favorable light in
view of Federal legislative action and
future planning by industry itself.
Opening of the election campaign
was the signal for modest revival
of speculative buying by hopeful
market followers, many of whom
concentrated on the utility shares.
Wall Street, however, took the DEM
ocratic victory in stride.
Imitation remained an active word
in the language of boardrooms and
some sources contended part of the
demand for common stocks was in
the way of hedging against posi-
bic further upward spiral in prices.
Whatever the extent of such fears,
they seemed to have no effect on
the market for high-grade bonds,
usually sensitive to imitation threats
because of their fixed interest rates.
The curb market closely followed
the big board trends both in prices
and volume The years transac-
tions in the smaller market totaled
around 73,700,0O0 shares. against
1882 ,463 the year before and
22,327 1922 in 1912.
Closing Session Active.
Despite considerable profit CASH
ing, the stock market today con-
cluded the year by registering a new
7-year average peak on the third
fastest Saturday since last June.
While early advances ranged from
/ lSee STOCKS, Page BID