Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-03

&Contlnue0 from seventh Page.1
field for industrial development, ans
American investors, once the fever of
speculation is allayed, viii participate in
hurope's development"
There are many who believe that
with the problem of concenCrated creo-
Its clearing up in the United States,
European expansion, backed up by
American dollars, will be as notable
IN the next decade as American expan-
sion has been in the last decade.
Francis II. Sisson, vice president of
the Guarantee Trust Co. of New York,
believes the rapid decline of the stock
prices was due to the small investor
who was 'uninformed as to the intelli-
gent procedure as to buying and SELL
ing securities"
This made him easily subject to psy-
Geological reaction OF an exaggerated
sort.
This attitude toward the market"
continued this banker, was based on
the view that there was no limit on the
process of increasing corporate earnings,
reinvesting profits, and thus further i'll
creaSing the earnings, but the coun-
try's basic concerns obviously could not
go on filling the demands of the pub
nc's imagination"
Effect Of Crash.
: When it began to be generally real
lied that prices of many of the stocks
were out Of all proportion to their pres
ent or prospective earning power, small
investors, unable to supplement their
impaired margins, were precipitated
into the market as sellers, against their
own will.
that the effect of the market crash
upon industry and commerce will prove
either violent or lasting.
But Senator Gerald p. Nye, North
Dakota, wants to know how an actual
loss of $4,000, 900 900 in intrinsic VAL
ues of stocks and bonds can occur in
so short time. He believes the eco
nomic structure of the Nation Is inn
periled by such violent changes, which
threaten the stability and integrity OF
the industrial life OF the country"
So he Is asking that committee Of
five Senators be appointed to "investi-
gate the facts and practices concern
ing or relative to speculative operations
in connection with stock Exchanges
within the United States"
Resolution Is Sweeping.
The resolution of the youthful North
Dakota Senator is sweeping. In 1t he
asks power to subpoena witnesses and
require production of all books papers
and documents, and TO employ account
ants, experts and other assistants to get
the facts. and he insists that the inves-
tigation start Immediately.
An unbiased, candid, frank investiga.
ton of stock market operations should
not be opposed by anybody. 1t is pos.
gible that the Senate in Its present
mood, will pass this resolution.
The bond market, too, suffered In
the screenings which the stock mar.
kets experienced last week-not nearly
50 violent a decline, however, as die
most of the standard stocks SOME
bonds suffered considerably more thar
Others. This was true of the Fedora
Land Bank tax-exempt bonds, which
were traded over the counter at 81
and 81 for Az per cent obligations
q decline of from 8 to 9 points from
their highs. But during the past tw'
days they have been rising rapidly.
Probably the worst bond decline o
the week was the inactive issue of tn
Brooklyn Union Gas convertible 5ias
IL took a tumble of 142 points on
single sale Thursday. But the issu
has not appeared on the tape for
long time. So this drop really repre-
sef1ts the cumulated changes Of tn
violent bear market.
(EepyYight, 1919. By North American News
nanex All1Anea.9