NEW YORK, Oct. 22, 1929 (UP) - The recent bearish stock market has about reached its bottom and an upward movement is in sight, increasing throughout next year, Professor Irving T. Fisher, head of the Yale department of economics, said in an address here.
Fisher said the market would probably be ragged for the next few weeks, beginning a definite movement upward, which would increase steadily. Investment trusts, mergers - particularly in the public utilities field, the Federal Reserve Board, scientific management, labor co-operation and prohibition all have contributed to the stabilization of the market, the economist believes.
Professor Fisher said the factors which had made public utilities stocks sell at a higher ratio than the industrials had been discounted by now and those stocks hereafter would assume a closer relation to others. Those factors were scientific invention, mass production and mergers.
Discussing the importance of mergers in stabilizing the market, Fisher said they had made for more economical operation and had brought about rapid expansion in all fields. Prohibition had aided by making labor more productive and increasing the purchasing power of the masses, he said.