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Show Profit Recessions of 1920 By Ira C. Tichenor , . I PIAT the New York stock market remains practically in the hands of professional operators is demonstrated by the, one fact alone that particular attention now is being paid to reports of various industrial companies, which show losses, some of them of rather large proportions, resulting from operations during 1920 at compared com-pared with profits made during the several preceding years. . Practieally throughout Its history Wall street hat anticipated any prospective pros-pective or assured developments of such a nature as described, and usually to such an extent that Its effect is worn off by the time It 1 actually realised. During the last half of 1920 It was known for a certainty that the earnings of many of the big Industries would suffer a decrease or be transformed into losses as a result of the decrease In -business and the readjustment of prices. It was this certainty that resulted in the constant decline in the mafjet values of the Issues of Industrial concerns generally during the closing months of last year. - It was naturally presumed, however, that this unfavorable condition would be completely discounted by Wall street by the close of 1320. Instead ' of this, the professional opeitorsonUnuetojjretend atjeastjlo go Into a tpasmbllowlng the publication of every report thowlng losses for last year. On the other hand, they completely Ignore the existence of favorable t conditions and the assurance of a continuation of the Improvement In the L general situation. The natural result is that the trading on the New York axchange la narrow and professional. There can be no doubt, however, that Insiders in various companies whose Issues have been dragged along rock bottom ha been quietly acquiring additional holdings, while the more thoughtful of the Investment public also haa availed Itself of the opportunity to get In on the ground floor. L nSouStedly the time is not far distant when the market will be taken out of the hands of the professionals and display real Activity and strength. |