| Show STOCKS HEAVY BUT NOT Corrective Process Continues Continues After Os-er- Os Speculation Over Speculation Period Hy Dr STUART STUtT P WEST VEST SI Special t al Corr of ot The Copyright 1926 Consolidated Press Association NEW YORK YORI July On 30 10 On the stock exchange In the bond mar mar- market market ket and In some torn of the tho lh speculative commodItIes markets the put past week has been an sn increasing ten teu tendency dency to Inertia As compared with fluctuations of the tho preceding week the price movement In stocks has baa been sma amal and not at all Important The fhe bond market has had very few Cw features The Th Impression prevails alls as It has for tor the th past month or more that In ln bonds have ha fully Cully adJust adjusted d themselves to the thelow thelow th low money level and that unless something unforeseen happens to reduce still further the cost ot of money the th highest grades of In- In investment In Investment vestment Issues have hav passed theIr top The higher class of railway mortgages are arc not down much from theIr best besl and no Important reaction tion has taken place In the th Unit ell States government loans What the tho market tor these thes two sets of ot bonds dIscloses Is that buyers ore are ar reluctant reluctant tant to pay present prices and that where selling calling Is done It Is done at ata ata a concession These Thes are the th char char- characteristics characteristics characteristics of ot a market which In technIcal terms Is described as hen heavy This Is from of which there Is no suggestion In any quarter ter of the he lu lu estment situation CORRECTIVE S Going over the thc principal stock market changes chances of oC the th past few Cew months month It a appeals that speculation was much o over done done r-done last October and November and that attempted revival re In January fell flat Then the inevitable corrective process s1 s sIn setIn In The market went down rap rap- rapidly rap rapidly idly and persistently for tor the ne next three months What has happened since I Is partly a recovery and part part- partly I ly lip a renewal of operations for tor the therise therise rise In stocks which It was either easy to move o on account account of scant supply or which have ha been put up for reasons peculiar to cs There have bce been just as many mani failures as successes In tn the oper oper- operations oper- oper operations operations of the th last month and a ahalt halt half Copper chares thares have gone cone up nothing to speak of neither have havethe havethe the suar sugar shares In a II number I of motors the th rebound has been slight b by cont-aal cont with the th decline from the end of January to Ma May Railway shares share have gained rained ground but for tor the Jr ott n-ott ost part the th buln buying hu has been confined to the tho rails mils which h are actually concerned or orare orare orare are believed to be concerned with merger mercer prospects Some a ad- ad adJustment ad adjustment buying has taken place In old line IIno dividend l paying railway shares share on account of ot the attractiveness attractiveness attractiveness of ot lr ir yield but there has been no general upward movement In this section of the market BUSINESS DRIFT DOWN DOWNA A good deal of comment has hns been made mad on he unusual activity for tor this season ot of o the year In th thu steel Industry It I Is stated that In Inthe Inthe Inthe the mixed business conditions condition now existing the th favorable f points have become more pronounced i Stilt Still even authorities s like Duns Dun's ne I RevIew V which are arc Inclined to emphasize strong features have hao to make mak any qualifications Says Sas Duns Dun's The main trend of markets has been In a downward directIon durIng the last seven seen months The months level of pric prices s In some some divisions of textiles lea leaves little Utile or no mar mar- margin mar mar-cin gl gin of profit for tor individual transactions And the movement toward restriction of output has ha teen been een carried further The Th estimate of July 1 i Is that thai the average cf ct the prIces went down over o 1 per ler cent from fromIlle the Ille month core eore not an Important decrease but sufficient to show that the th main drift In general bus bus- busIness business iness Incas has been further away from rather than a drawing toward more condItions PRICE SITUATION SITU Until the tho th price pric situation tin tin- Im Improves proves It Is hard to see any basis for a bl big bif expansive movement mo on the stock exchange Individual tocks go co up for tor particular rca rea- rea reasons I sons eons those thos Involved In mergers or those which are ar believed to have prospects for some som kind of ot In- In increased In Increased creased dividend disbursement But even een here in the case caso of the Industrials the main cause of the advance 1180 lie lle In the tho th accumulation ot of past put assets rather than bIg ble earn earn- earn Ints togs Ings being belne made mad at present Call money has hos not changed all week eek Some Som slight alIght of oC time money tor or the longer loner dates affected the th desire ot of Wall street stroet houses to stock up with witha S a credit credit supply while It Is cheap There Is little difference between quotations for funds on time tim and funds on call Brokers loan loans as reported at the th end of ot June Jun dis- dis disclosed dis disclosed closed a 8 larger Increase than bad been looked for but where tho hanks banks have hav called In mone money bor- bor borrowers bor borrowers rowers on stock exchange collat collateral eral have found no difficulty In obtaining frech credits French Belgium and Italian pa- pa paper pa paper per currencies all made ma-dc now new lows with the tho th cour of ot the th week tha that thatIs I Is record lows tor for all time The Tho new French fiscal proposals far from baying any reviving effect brought out a storm of protest Banking circles throughout the world were expressing their skepticism skepticism over the th latest efforts to save the franc It Is hard bard to get at the th truth of the th Italian position tion because news from Italy Is I subject to restrictions 00 |
