Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-30
BUSINESS UNHURT,
DR.. KLEIN DECLARES
Market Crash Not Expected
to Affect Firm Structure
of U. S. Industry.
BY the Associated Press.

BY the Associated Press.
Official Washington chung steadfastly
today to its opinion that American
business need expect no adverse result
from the collapse OF stock exchange
prices.
Such a view was expressed by DR..
Julius Klein, Assistant Secretary of
Commerce, in a widely broadcast ad-
dress last night, over the National
BroadCasting System, which is under
stood to represent the attitude OF the
administration in general, and COIN
cideS with President Hoover'S previous
statement on the business situation.
No action had been taken by the
Federal Reserve Board, in the face OF
yesterdays precipitous decline in securi-
ty prices, although the board met with
known to have been in close touch with
the Reserve Bank at New York.
Tydings Raps G. o. p.
The break in stock prices was at
tributed to the party In power by Sena-
tor Tydings, Democrat, Maryland, IN
statement issued through Democratic
national headquarters. 1t asserted tnaI
''in most cases there is the ironical
realization that these great leaders, who
q year ago were yelling prosperity are
irving to find a scapegoat in the race
of a $4,000 100000 loss in one week OF
American life"
DIR. Klein cited numerous circum-
stances to support his view thas Amerl-
can business is standing squarely upon
a firm, sound basis. A.
The purchasing power OF the Ma.
ton is at a high level, ne SAID, anu l
may be expected to continue So lily
demand for commodities has not peen
affected by the stock market collapse
ennloyment is on the increase, -:
rapita production booming; stocks CT
manufactured goods have not plleo up
and average commodity prices nave
maintained consistent levels.
"Regardless of regrettable speculative
uncertainties" he asserted, the INDUS
trial and commercial structure OF the
Nation is sound"
Hoover Statement Stands.
Pointing to President Hoover's state
ment of last Friday on the business SIT
uation which expressed high commence
In the industrial structure OF the coun-
trv DR.. Klein said that no interview
ing circumstance could be regarded as
necessitating a change in a single woro
that the Chief Executive uttered.
At the most liberal estimate. he as
serted, only a very small proportion OF
fected by the stock market collapse
less than 4 per cent of the families
and less than l per cent OF the popula-
tion by individuals-with vastly pre-
ponderant majority of the Nation I'M
affected" by Speculative gyrations."
From this circumstance, he drew the
conclusion that American purchasing
power ard o. lsequent demand Tor COM
moditie1 p been scarcely touched by
the fall Security prices.
DR.. Klein said that 1t was Impossible
for him to forecast what might be .ex-
pected on the Stock Exchange "tomor-
row and next week." and improper, as
well, for a Government ofhcial to at
tempt to do so.
Psychology Plays Part.
"The careful student Of American
economic life" he continued, equipped
with an abundance of statistics, can
forecast fairly well the long time trend
of production and of standards OF liy-
ing, and even of many more speclnc
branches of business or other eco
nomic aspects. He cannot foresee ac-
curately short-time changes in eco
nomic conditions and least Of all those
speculative changes which depend
largely on the psychology Of the people
or Of a fraction of the people.
"All of us are justified, in my opin-
ion, in a profound confidence in the
general economic future of the country.
Just what relation should exist be-
tween that confidence and his present
attitude toward the stock market Is
something for each individual to decide
for himself"