Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-22
Washington Ticker
BY CLINTON COFFIN,

Neither the recurring stock market
shocks nor the renewed spectacles of re-
cession in security prices are inducing
ADLER Government administrators TO
abandon the attitude Of restrained con-
fldence with which they have been re-
garding the business situation for some
months. The impression that they give
observers is of conviction that the
economics OF the production and dis
tribution of commodities in the country
is generally on a sound base, and that
the speculative turmoil is more or less
taking place in compartment OF its
own, relatively affecting little the proc
esses of supply human needs and
desires in all Of their ramificationS
which make up business.
1--WE don't know quite as much as Is
probably desirable of the actual Stats
tics of the subject" Secretary Lamont
Of the Commerce Department remarked
in explaining why he regards the whole
stock market performance as q thing
apart from regular industry and trade,
but my impression is that relatively the
number Of people participating in stock
speculation, even on the unprecedented
scale we have recently witnessed, isn't
large, when compared with the whole
population Of the country. Thus neither
the gains nor the losses they experience
can be expected to alter the consuming
power of the public. 1t has always been
found that both in the upward ascen-
sions and in the probably inevitable fol-
lowing descents, that buying power in
this vast Nation has neither been
Spurred nor retarded
$50 I think that this will be the ex-
| perience again. Further, this speculative
period has had one unusual character
istic which may be expected to reduce
its influence on general business as COM
pared with whatever influence other
speculative waves have produced in their
stocks have scared to extraordinary
heights and held there is that owners
of great blocks have been unwilling to
sell, take the profits and stop the as
tensions, because they were unwilling
to pay the income taxes that 1t would
have occasioned. The great bulk of So
| called profits in this last speculative
period has been singularly paper mat
ter, and the eraSing Of the high figures
Is equally a paper matter.
THE fact is, one can hardly say that
these declines mean losses as we think
OF losses ordinarily, just as the rises
didn't mean gains as We think Of gains
in ordinary affairs. Severe as have been
the losses by probably a large-sized
group of spectators, it seems to be a
fact that the great accumulations of
oSSbAAOASo AAoNC IuoL DCCll 6OlLlB lIIOu6ll
a bookkeeping phase of being marked
up and down. 1 don't believe the eff
fects will be notable In general bust
ness"
Certainly the market proceeding IL
Illustrates in grim fashion for some
| of the present generation Of market
traders what the late Z. H. Gary
said in Washington about the law Of
supply and demand. He was testifying
on that ancient principle before the
Federal Trade Commission one time
when policies of the Steel Corporation
were under fire.
1--WE always noticed that just a
| little bit of surplus will force prices
away down, in way that is dispro-
portionate to the size of the surplus
entirely" he declared. AID just the
smallest shortage, on the other hand,
seems to drive them far up. The varia-
tions aren't in proportion to the sup
ply or needs at all"
That principle has been lately bring
ing obvious havoc to the stock mar
| ket Small as are the days offerings
| Of q given stock, compared 10 its total
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