Show VV CREDIT SUPPLY IS 18 ABUNDANT Stocks Continuo Continue Upward Trend Rails Bails Rally After Decision B- B By Dr GEORGr T HUGHES Corr vt ot PI h Ix CopyrIght 1127 1927 Pre AssociatIon YORK Feb b The 26 Tb 26 2 Th 1 m mi na- na i jot tn trend of at url tn In hn na market Mock ock has ha h been up upward ward card There Thero l t been ot of course courie In iii Individual Issues Andall andall and all the tho gains have o not been held but at one onO tim or another lie ally practically every group croup has como come In Lot for atten attention from speculators peculator tot lot tho advance The rhe trading clement seem to base hav reached the th conclusion that the th line ot of least leut els cis in III t int tho direction ot of higher hither prices Iere still are from toni this thia view but thc they aro gre ro In the de- de decided minority The Th rough treat treat- tre t- t ment that hu has ha been dealt out to the th hott hort hott Interest rest has ha Intimidated that party pretty pr ty effectually Conjecture U is aj ILS to how much of ot the tho th support that a 11 large lare short Interest gh shea es to am a m has ha be been n removed tin Un- Un Undoubtedly the ho th technical position I has been en b en weakened wakened but how e- e eg- eg c Is I uncertain At the tho same annie am time there thero have hav been evl dences dene that public Interest ls Is I on the th so o that taking the tho probabilIty two ta factors factor tors together the th Ity of ot a i reaction temporary but possibly severo ls is heightened l Taking raking a longer range vIew however there thero ther has ha been een no no change chongo In the th situation The rhe Th fun dam thing thine still Is l the th abundant abundant dont dant supply ot of o credit cr which has Its main outlet In the th security markets It Is I this factor which Is underneath the th strength In li stocks s and bonds bond 1 alike There Ther was wu a hardening ot of call calmon mon money y on Friday but that t was wa simply a II preliminary to the th end endot ot of the th month month Interest and disbursements dl Time Tim money was WIlS a II shade had firmer but that was not petition significant either cither The Th peti poal tion ot of the federal reserve reserve banks as revealed In the th weekly state mont ment removed all concern about bout th on y outlook is It Is Isto to be b found In la the th Action ot of States State ont bonds bond two of ot which sold old this week at the atthe th highest lift point In la their thelt history and on a ba l to yield the th In vestor veator less let than S 3 IS Pr por cent U H It 11 bl TEST IEST TES r The Th market was put to a se vere test the th day the th United States State Supreme court handed down the decision In to tho tb 10 I Los oi Angeles and 1 Salt Lake Lak railroad valuation case Wall streets street's first Interpretation was that the tho th decision was waa a 8 blow to the th carriers carrier and railroad rl stocks tock were thrown overboard In 1 one on of ot the th mot most hasty liquidations liquidation thi a thA IhA of 11 Ing price crumbled away Th The rhe Important point however Wall wea wa the th way In which quotations recovered once one it was realised that the th ruling was WILlI wa not as aj vital aj u It had bad scorned cm d to be It Is I true tru that for the th rt rut of ot the tho th week k railroad tocks tock did not occupy so prominent a place as aJ they had bi be be- be tor Zor tore and that attention was wa turn turn- turned turned th ed toward the tho Industrials but only a market In an strong position n could hove hays recuperated so 80 quickly RAiL lUlL LOW LOWA LOWA A a matter ot of fact the su Cu- Cu premo preme court decision d cl lon did Slid not take tak a away woy anything the th railways rail had I It did not affect the th value of ot railroad stocks stock whatever It may have hav done don temporarily W prices price A court ruling on the tho proper basis baals tor for railroad value value- lion ion will not como corn ome until some someone someone one on carrier carrl r brings brine a case cas based basei on an order of ot the tho th Interstate corn com commerce merco merce commission which tho tha raIl rall- rail road In question can claim has donG done It an Injury Meanwhile present dividends can easily be maintained and In a feW cases possibly increased and the 1 prevailing price pric level of ot railroad stocks relative to earnings per share Is ls still stilt far below that of the th corresponding utilities The Th cautious Investor will corn com compare pare capitalization with Ith the th corn com missions mission's valuations but hut even then he will find not a few Instances where property worth under any basis buls of ot valuation Is ts in excess excels or of orthe the total of ot stocks tock and bonds out out out- outstanding standing Just Juit to cite a few examples the th Atchison Coast Line th the Northwestern th the lack wanna the Rock Hock Island the Now Haven Norfolk and Western and the th PennsylvanIa are ar in this thi position NEWS With the th exception of the tho th ott ll production figures figure the th trade trad news new of ot the tho th week have hav been ben favorable and developments de in the tho th oil In show that hat a an effort Is I be- be beIng leg Ing lii made mad to check production Copper Is I decidedly higher hither and anc the th copper stock stocks have hav accordingly Operations In the th industry Indus are ro ar around the tho th bet best ot of the th year although there ther hils been heon no improvement nt in the tho th price situation There Then is optimism about the tho rubber and tire outlook and about textile t conditions condition Compo Compo- among amone motor car furor still creates create doubts but the ability of ot the th leaders leader to make satisfactory profits seems seema seem reason reason- reasonably reasonably ably well assured In this thi connection It Is la interest log IlIg 1 to note not that prIces price ar are aro steadier and that on th the week advances advance and ana declines are ar about evenly divided while last week the outnumbered th reductions greatly bored ril E UNSETTLED D tobe The Th principal question question still to i be an ered concerns concern th the future ot ce agricultural prices price It 11 is too early to pass lass Judgment upon the h effect ot of o tile the th presidents president's veto ot of the lh McNary bill The Tho grain and the cotton markets wilt will them them- solves solve do that that but the th first re- re reaction action is Ii not necessarily decisive No matter what view one ono holds on problem the tho political or the tho economic I lem Involved all admit increased i buling bu power for the tb farmer farm r Isa is I F a 4 I Ian an Ity prosperIty essential for tor Or continued prosper prosper- |