Stockmarket

The unusual activity on the Stock Exchange has continued, accompanied by firm or sharply rising prices. The verdict of Wall Street seems to be that the present is a "creeping bull market," which may last for some time.

One remarkable feature of the recent market activity has been the stationary status of brokers' loans. Usually, as stock prices rise, investors sell out to speculators who buy "on margin," thus occasioning a rise in the amount of money borrowed by stockbrokers at the hanks. No official figures on brokers' loans are kept, but fairly reliable estimates indicate that recently no advance has occurred in their amounts.

The explanation given for this apparent paradox lies in the unusual amount of cash buying of securities recently seen. Holdings of securities by the banks have increased; new issues of securities with real merit have been snapped up swiftly. Public investment in real estate is on the decline; industrial and commercial business, for the time being at least, are in a generally strong financial position. Public funds are flowing into securities because there are few other things into which they can flow.

Some distrust of "inflation" has been expressed, after recent stockmarket volume and appreciation. Actually, stock brokerage firms today are not extended, but in a very sound condition.