| Show New York Stock Exchange Ends Brilliant Year s Business By JAMES B. B CLEWS WALL VALL STR STREET New York lork Jan 1 The I.-The The stock market finds Itself in a position of uncommon business prosperity ity and strength Notwithstanding NotwithstandIng Notwithstanding standing the natural letting down which is incident to the holiday seas season on and the inevitably disturbing disturbing disturbing disturb disturb- ing elements element resulting from treasury treas trees ury financing tax selling accumulation accumulation lation o of funds for year-end year disbursements disbursements disbursements dis dis- and the like the price level during the tho month of December December Decem Decem- ber bet thus far has displayed unusual stability and buoyancy Both business business business busi busi- ness and financial prospects continue continue continue con con- excellent and there has been no break in inthe the situation that gives ground for anticipating any decided ed changes In values or 01 In outlook YEAR-END YEAR DEVELOPMENTS While statistics are are of Cour course oure e not note yet e complete for the entire twelve twelvemonths twelvemonths twelvemonths months it is evident that in te major lines of activity business re results results re- re suits will be uncommonly tory The net incomes of class one railroads are now now estimated at 1 for or the twelve months or an increase of over 1924 The gross gros earnings of represent representative representative rep rep- resent industrial Ial corporations are expected to show an advance over 1924 of about 25 per cent while aggregate te output in the major pro pro- lines is estimated at a somewhat somewhat somewhat some some- what corresponding figure In a st number of branches o of business also aau it has been possible to reduce costs This has Iras been notably true in transportation trans tram while in some other el lines larger turnover anc and better organization tion have resulted in lower unit ex ex- ex For the past year the tIle aggregate ag ab a of f building operations is authoritatively figur figured d at about 6 or 20 per cent over 1924 and the current rent forecasts for tor 1926 are placing the probable figures at I I I I I not IlOt less than In rn the automobile trade the output o or of cars is now expected to run well above the tile that has been predict predIct- predicted ed ed while earl early prospects for 1926 a appear pear to indicate a continuation of ot this strong demand Export trades for the tIle year ear amount according to 10 current estimates to about an increase of fully the latter figure showing an excess for the tIle year ear of above Imports All AhL this tills mak makes s sa a very strong background for the stock market and furnishes the tile reason reason rea rca son for thinking that present values may may be substantially maintained or bettered FINANCIAL OUTLOOK ENCOURAGING Banking conditions at the thc close of the year ear likewise show v an excellent position The stock of gold I s i-s reckoned by b the thc controller of the curr currency ncy at t about Deposits Deposits De De- posits in banks are the largest ever recorded being in the neighborhood of General condItions conditions conditions condi condI- of liquidity are good and al although although although al- al though the volume o of loans on s se securities Se- Se is very high there is no flO reason to believe that it has been advanced d to any immediately dangerous dangerous dangerous dan dan- level Sonic Some advance in charges for money during the current current cur cur- rent month was nat rally to be expected expected expected ex ex- as an incident to the various monetary changes which usually go goon goon I Ion on during and which ma may properly be regarded re-gard d as an outgrowth outgrowth out out- growth of the readjustments an and 1 payments which are arc necessary atthe at the close of the twelve months r Tic c community ha has given n less Jess and and 1255 attention to to possible ch changes in the rediscount rates of the reserve system system tem tern and it is disposed to look upon Ulon the early earl future with entire equa equa- Domestic bond issues ff for forthe forthe the year ear will run to about 2500 10 while foreign bond issues are estimated at about Demand for securities for ac actual actual Re- Re investment purposes has been unusually good during the past month and for the year as a whole unprecedented Banks continue to tobe tobe tobe be large buyers and holders of ot g securities se 52 of all descriptions and K It would seem probable that there would be no change in this situation situa tion during the early future suture The buying power shown in taking up Ull issues of foreign bonds has hai also been exceptionally strong and It Isa is isa a notable fact that despite this tills strength it has not operated to curtail curtail cur- cur tail tall the tile genuine demand for old se securities securities se- se already on the market FARMERS' FARMERS SITUATION EXCELLENT According to the latest government government government govern govern- 1 ment estimates the corn corn wheat hay and cotton cattail crops are estimated ed as being worth while ta taking ing the entire farm income for ford the year as a whole It would seem that It ft will not run far from that of 1924 notwithstanding that some shrinkage of i is s value is noted noted rioted not riot ed in the major crops due to the falling failing off of the output o of wheat tt and corn as compared with e early eniy riy estimates The Tile distribution of tIe the income however has been good glod and ard In nearly all parts of the West Vest est estand and South the farmer has been able to reduce his liabilities at the bank banki very materially The active movement nov move ment tent of crops to market has helped ed edthe the railroads in maintaining an excellent excellent ex ex- record which has run at unusually high figures far above 1000 cars per week most of the time notwithstanding I the arrival of the winter wintel season There is every reason every reason to suppose that this traffic record will be maintained and that the heavy movement of staples will continue the only unsatisfactory spot in m the whole situation being anthracite coal as to which conditions show no no immediate of relief The Tile that are under way are aie doubtless a step toward some conclusion con coil elusion but arc are by no means suffIciently sufficiently suf suf- definite a as yet et to hold ibid out positive promise of or adjustment Political advisers indicate that the problems which President Coolidge has been lacing facing are hs urgent th than n many had supposed There will wIl undoubtedly be he a l' l lengthy tax struggle In the senate a good good many modifications of an tile the house bill bili but the present are all In favor of an even larger cut so far as total amount Is concerned while the tile maintenance of the fundamentals of the plan for surtax reduction is practically as as- as There Is no disposition In either eIber party to Interfere with a ver very satisfactory measure of tax relief reHer As for the railroad situation that thatIs I Is likewise progressing favorably With a decision on the Plate I merger which will wil permit that combination com coin comI I to go into effect possibly before the end of or January Januar consolidation legislation Is also to be anticipated come being that the adjournment of the present congress see seea a new era of readjustment and re recapitalization recapitalization re- re capitalization for the sound l roads o al of the thc country fairly well wel open opened Banking prospects are as yc yet not definite but It i. i seems unlikely ly that th the more threatening measures that have been proposed will wl come to actual discussion As for th the Various Various varIous Va va- rious radical projects that have figured on the floor foor of both houses In recent sessions there is none ione that apparently a holds out much In Inthe inthe the way of danger at this time President Coolidge is generally general y admitted ad ad- to have been largely sup sup- thus far fat in his handling o othe of the capitol capital situation and there i Is reason to believe belive that this success will wl continue and increase rather than decline MARKET REVIEW AND OUTLOOK Actual market con conditions have been hopeful during the past we week k excellent support In evidences at times when effort efort was being Ing being made by professional elements to drive prices downward Ther There has nowhere been an any ally considerable in indication indication In- In of liquidation nor h has s any ground been given for thinking that confidence has ils been lost by th tile the public at at large On the renewed interest has been manifested manifested mani mani- fasted in the rals rails rails- as well veil wel as in oil 01 stocks and in in- some of the trials In Iii M. B.-M. B. T. T as the latest ad addition addition nd- nd dion to the paying dividend-paying stocks further evidence of satisfactory conditions con con- Is afforded and the continuation contin cuntin- of extra dividends and fa fa- fa financial announcements have ve 1 amply sustained the confidence conf 5 dence that had already been be expressed expressed ex ex- pressed on the basis of earnings analyses While there has been beel some difficulty In th last fortnight fortnight fortnight fort fort- fortI I night or so in readily digesting the supply of stocks such indications as are afforded In that direction are technical and temporary and there Is no dolbt that that fundamentals arcas are arc areas atcas as good as ever As compared with the activity of the the past few months the market is naturally less Interesting interesting Inter inter- esting esing than It has been but tra traders trad trad- 1 ers ens well wel are nevertheless doing very verv |
