WALL STREET: Psychosis or Lag?

Wall Street's bear market reached such a pass that a Cabinet member asked the President if he had considered putting a floor under stock prices. The President just laughed. But it was no joke to U.S. investors, who have seen the averages sink for 31 months. Last week a flickering Wall Street rally set off another wave of conjecture on one of the biggest financial enigmas of the war: the divergence of U.S. and British stockmarket prices (see chart).

Ever since mid-1940, British stocks have been pushing upwards. Total rise since October 1940:...