New York, Aug. 4
The extraordinary disparity between the yields of high grade bonds againt the returns from representative stocks, with issues like Chrysler, Schenley and others selling at ten times the first half year earnings in a period of unexampled financial ease, is re-emphasized.
This raises the point whether it may be admitted that grave long term problems are being overstressed: it is stated that rarely does the stock market attempt to look years ahead since money and judgment are too restless.
Within a few months the presidential election and the character of the Excess Profits Taxes will be known, and also if England is able to defend herself.
Meanwhile, factors here are likely to be favourable, and the market will-be tormented only by the prospect of a long war, which London envisages going into 1942.
The fear of disaster is more potent than realization of the event itself, with the Dow-Jones Industrials Average ruling only two points below the day when the Dutch surrendered.
While the market cannot be vigorously out of the rut, industrials gained five points last week, with trading one day the highest recorded since late June.
Text read from the printed page and cleaned; old type leaves the occasional error.