Bull

When Thomas Cochran, Morgan partner, sailed for Europe two years ago, he was reported to have said General Motors stock was worth $200 a share (TIME, Aug. 16, 1926). General Motors went above $210.

When John J. Raskob, chairman of General Motors' finance committee, sailed for Europe two months ago, he said General Motors was worth $225 a share (TIME, April 2). It went to $210 on May 7.

But when William Crapo Durant, stock market operator and motor manufacturer, sailed for Europe seven weeks ago, he said nothing striking. And yet he is one of the headiest bulls of the present market (which many sane economists believe is at a peak).

Last week however, upon his return to Manhattan, he said much: "Every analysis of good securities will bear me out that the current trend of stock market prices is justified, and I predict within two or three months we shall witness a bigger bull market than ever before.

"Cheap money will prevail, and it is my opinion that the current tendency of tightening money rates is more due to an attempt to discourage speculation than to registration of any fundamental unsoundness of industry. With the banks continuously increasing their deposits, it is natural that these surplus funds will be placed in outside channels seeking good investment. "I do not share the opinion that the present movement of the stock market is due to any one man or group of individuals but is due to world-wide prosperity. . . . In Paris, London and Berlin good securities have had terrific advances. The world's capital is seeking profitable investment.

"Brokers' loans of $5,000,000,000 don't mean anything. In fact, I don't believe $10,000,000,000* would make much difference. Bank deposits and resources have increased enormously and these funds must be put to work one way or another. The stock market affords a good outlet."

*There is only about $5,000,000,000 actual cash in the entire U. S.