The resiliency which a few groups of
stocks have displayed this week, under
moderate purchases, raises again ttie oft
repeated query about the underlying
stratum of general business. The state
ment that the "corner has been turned"
can easily be drawn out by a little Im
provement of prices, but more facts are
needed than have come to light so far
this year to prove that the complete
basis for expanding Industry lias been
established. It is evident in trade re
ports that there has been a growth of
manufacturing and distribution In some
lines since March 1, and the firm posi
tion of crude oil prices Indicates at least
that the Influence of seasonal consump
tion is being felt. But the steel and
copper markets certainly are not yet dis
playing a material enlargement of buy
ing, and the situation of bank loans In
agricultural regions, as well as some
manufacturing sections, shows that con
siderable deflation remains to be com- |
pleted before the effect of last year's
sudden slump of prices Is entirely re
converted Into a stable foundation for a
new period of prosperity. The time may
be near or It may be far away for a
genuine easement of money in New
York; the fluctuations of call loans be
tween 6 and 6*/i per cent, forecast noth
ing at all and suggest merely that a
dip below 6 per cent, for several days
Is likely, as on several other occasions,
to drive deposits away from New York
to more profitable centres.
