STATE OF BUSINESS: Forget 1929

In Wall Street's big post-election boom, stock prices last week surged close to the 1929 alltime high. For five straight days, the stock market climbed into new high ground; time and again the high-speed reporting tape fell behind floor transactions as traders snapped up stock.

All through the list, from A (for American Locomotive, up 1⅛ to 16½) to Z (for Zenith Radio, up 4¼ to 82), stocks swept ahead during the week.

Steels were particularly strong, with Bethlehem up 8¼ points to 93¾ and U.S. Steel up 4 to 63. International Business Machines jumped 21½ points to 340, an alltime high. On one day when 3,720,000 shares were traded, New York Central accounted for 4% of the activity, closed the week at 24, up 3½. By week's end the Dow-Jones rail average had tacked on six points (127.65), and the industrials were up a fat eleven points, to a new bull-market high of 377.1.

At that level the industrial average was less than ten points below the 1929 peak. But last week Wall Streeters could point to good reasons for the market being where it was—or higher. Even at their current levels, the stocks in the Dow-Jones industrial average are paying dividends at a rate of 4.9% v. only 3.48% in 1929. In terms of 1929 dollars, stocks now would have to be selling almost twice as high to be equal to the 1929 peak. Furthermore, in 1929 the prices of many stocks were based on paper values; in the present market, many stocks are still selling for less than their book values. Because of the differences, many traders have dropped comparisons with 1929 in favor of a new peak; they were wondering whether the Dow-Jones industrials would hit 450.