| Show MODERATE TE RISE FEATURES US liST Money Ioney Rates Cheaper Conditions of Trade Trado Are Sound By Dr STUART P r WEST Special 1 Correspondent llOn ent of Standard St n l E Copyright ht 1926 b by Consolidated a Press Association NEW YORK YORE May The 29 2 The fea- fea features fea fe tures turcs ot of the th last week In Lb he e dal citi have hav been the th contin contin- continued ud tied low rAtes for money moneys the th main ot of o high hl h prices for Invest Invest- Investment ment securities 0 a moderate up- up upward up upward ward tendency In stocks and nd un- un uncertain Un uncertain certain fluctuations In the commo commo- commodity and exchange markets The Th time tim Is li put st when low money exerts a n stimulating effect upon bond values value the yield on prime prima In- In in Investments vestments hIlA ha become becom so o low that there is III I no longer any active de- de demand de demand mand inand Offerings of the th he hl grade bonds and mid the higher grade Investment stocks stocke are ar readily taken around round current prices but there ther Is Ino no disposition to bid them up any an lurther In a word the Invest Invest- Investment Investment mont ment market has adjusted Itself to t the th low money market the prospects of money conditions con con- con continuIng Indefinitely the tb way they the are ar now CAPITAL CAUTIOUS C content Investment capital has to be con con- tent with low return unless It cares to take tak chances chance it Is a won won- wonderful time for the th financing ot of o new Issues of ot unquestioned rank but It is not the tho time for a further attempt such as was as made mad last autumn winter and an during th the early win win- Win tor ter to Interest new capital In the th stocks stock of untried enterprises The Th public was badly hit In the radio exploitations and It h has not for for- for gotten the th experience it will be bea b ba a a long Ions while the th prediction may be b before Wall Yali street houses attempt anything similar The Th stock market had an extra extra- extraordinary extraordinary ordinary advance between the th mid mid- middle mid middle dle die of September and the th middle of January It lost a good part of the ground rained gained from the end ot of o January to the th start of May Hay The The- The losses were wr encountered on the th way down The reaction In Involved In many Instances the th un- un undoing Undoing un-dolot un doing rise ot of nearly all 1111 the previous In-I In STOCKS IN IX STRONG HANDS J But Dut It did have the th result of ot put ting putting stocks In stronger hands bands The rhe liquidation ran Its course a largo large short Interest was built up and the feature during the th last two to weeks week has been that professional traders sensing this change chance have been working on the tho th side Bid of o advance Outside participation has ha been mall Pools In Individual Issues recognIzing that there Is no o fur further fur fur- further further ther selling of Importance have havo become more active It has been beena a rising market yet a market strict strIct- strictly 3 ly Iy In professional hands Speculation for tor rising prices as overdone six months montha month ao ago aco The subsequent reaction went too far and market Is go log Ing Inc fo-Inc through no wis an Interval of readjustment The Th whole Wall Wallstreet WallStreet Wallstreet street position depends upon busi bust business business flea ness development The Th ea easi moneY condition ha has little to do with calculations Where Individual Individual ual trade conditions like those tho e In sugar ar and copper are not favora favora-bl favora ble there has hall ha been only a snail ad- ad advance ad vane ad-vane I vance In the th stocks concerned On the other hand railway traffic re- re returns returns re return turns turn have hav been and the promise of a big bir fall business has led to considerable discussion over the th possibility ot of o divi- divi dividends dividends STEEL STEIL PRICES LOW There Ther does doe not seem to be In general business conditions any ex ex-cus ex cuss for speculation In Wall street su such h as there ther was In 1923 1123 and In the th autumn of ot 1926 1925 The trouble Is I I that In many lines It is II difficult to et get et prices up sufficiently sufficiently to offset costs COlta A good deal was made mad of ot the an announcement that teel bars bar had ad- ad advanced ad advanced 2 a II ton was WIlS the first time tim In nearly a a year when there had bad been b en any rise rl In the tb price ot of steel products product But as a matter ot of fact the Lh composite lit cC it steel value continued low It If It Is not going down any further It Is 1 not going golnA up up tip Dunns Dunn's Review states state that the downward trend ot of wholesale commodIty quotations was wa slightly more pronounced this week 41 ot of the 76 75 changes chanie being reductions TRADE CONDITIONS SOUND In a price situation of sort there Is nothing to suggest a a sea sea- season sea season son of ot large larn profits Everybody sees e that at bottom trade condi condl conditions are sound because there ther has ha been no over buying over buyIng and no over over- over speculation such as thee th r was two years ago o But It Is not a R situation to get ret enthused about It IC stocks tok had bad not had a very ex- ex extensive ex fall tall they th y would have hav been out ot of of line with the th facts fact of ot the trade trado situation But Dut having gone down as a much as a they have los los- losIng los los Ing such a large larce part ot ot of the th reo re- re results suItS of ot last autumn speculative campaign they may bo be b considered to have hav undergone und rOD a sufficient re- re re alignment FOREIGN EXCHANGES EXCIL The Tb rally In French and Belgium francs franca did not seem to amount to anythinG except the tb covering In of oan an extensive short Interest Toward the end ond of the th wee week artes slipped oft orf again e ln There Ther WU was wa no rio reason to expect any change In la the tho th situation In the th paper currencies of these two to countries The Th problems problem re- re remal re mal re-mal mal coal oas s acute acut as 81 a ever and there ther is 19 no Internal balancing of the th bud bud- budget bud budget get and no prospect ct of ot assistance from outside loan loans French Belgian and Italian n Is- Is Issues I Is Issue sues sue have hav been barely thel their own thel-own own In the th market of the th week There has ha been no change In la the United States government l bonds The only activity In the tb bond list hu hail been In speculative Issues which have been following the tho course of the tb stock market LIGHT RISK RISE IN LV MONEY MONET The Th slight rise In la money toward the end of or the tb week h had d no sIgnificance sig significance It was due du to the tho th call call- callIng call call ine lug Ing of funds needed for taking care car of ot the end of the th month cor- cor corporation cor corporation requirements It had noth Ing to do with the th In main ln Wall Wallstreet Wallstreet Wallstreet street position which persistently Ignored the th fluctuation of the maney market |
