Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-21
BULLS AND BEARS
RESUME STRUGGLE
Financial District Surprised
by Decline in Stock Prices
Last Week.
BY JOHN F. SINCLAIR.

NEW YORK, October 21.--The week
end debacle on the New York stock
markets hammered prices down to the
lows reached on October 4, wiping OUT
all stock gains made since that time.
Distress selling by too optimistic
bulls and Joyful selling" by excited
bears caused the tape TO be 80 minutes
late In the greatest Saturday share
turnover, but one, in stock market
history.
While public utility stocks were the
hardest hit of the lot, no class OF
stocks escaped the whitening fire OF
the bears. All suffered.
It is the stock markets sixth week
of decline. Has the end OF the decline
come? If not. when?
Who Is wise enough to answer that
question? The person able to can be
rich in a month.
An Old-FaShiOned Opinion.
"But why the decline? No two OBJ
servers answer exactly the same way.
Business is tired" suggests L. NJ
Graves, New York economist. ard
downward trend may be expected
TOO many undigested stock securities
lying about in the vaults of the invest
naent bankers" suggests another.
Banks are demanding a liquidation:
OF long-carried loans; forcing too many
stocks onto the already badly de-
moralized market" said hard-preSSeo
bull to me.
There is an element Of truth in all
Of these comments. But there is
another reaSon-perhaps more impor-
tart than any of those mentioned.
stocks too high or too low?' l asked
Q high Government official IN Washing
ton last week.
when it REQUIRES for interest three
times as much to carry stocks as one
receives In dividends. I am old-fash-
toned enough to believe those stocks are
too high"
# the public decides to buy stocks
for investment and not for quick
turn or q speculation. two things are
likely to happen:
(D A vigorous readjustment of stock
prices, especially in the case OF those
far out of line, and 81 good bonds will
again be in brisk demand.
The titanic struggle between the bulls
and the bears was resumed on the eX-
change this morning. The next few
days should reveal lot.
Survey Requested.
The National Industrial Conference
Board, an important association OF
business leaders, is asking for an ex-
haustive survey of contemporary pub
lie education, particularly as it affects
the adjustment of youth to vocational
life in the United States. The board
believes it Is a very pressing need at
this time.
Such a commission for such an i'm
portant survey should be composed OF
q membership selected comparatively
by organizations representative OF all
the major spheres of influence"
The board. however, cautions against
haste in such move. 1t suggests the
assistance of all agencies for research
in the various fields which are now well
organized and supported.
That the rapidly changing social en-
vironment of today has caused some
EMBELLISHMENTS between the present
public educational system and the con-
ditions under which most young per-
sons begin to earn a living Is very EVIL
dent.
Such a survey at this time would be
of distinct benefit not only to young
people, but it would give business lead
ers a chance to state their case and
tell how far the school system prepares
young people for the active competi-
tive business life into which a vast ma
jority enter upon leaving the school,
room.
LADOf ana LAVE
The American Federation Of Labor,
In its annual convention at Toronto,
came out strongly against the use OF
court injunctions in labor disputes. The
authority for these injunctions has been
found by the courts in the Sherman
antitrust legislation and its various
amendments.
The labor group wants the Sherman
law repealed and has agreed to support
O measure in Congress having for its
purpose the amending or repeating OF
the Sherman or like restrictive laws or
parts thereof
This important question, with its legal
implications has been a most difficult
one for labor to meet. There Is
dispute between the ranks Of labor to-
day regarding Just how 1t should be
handled.
The delegates, by resolutions, favored
the enactment of another measure Ito
prevent the misuse of restraining orders
and injunctionS in labor disputes" AL
ready a bill has been drawn which for
bids courts to grant equity orders re-
Straining unions from striking. This
bill also would withdraw court jurisdic-
ton over boycotts instituted by labor
organizations against employers and
would also forbid damage judgments
against labor organizations which have
conducted walkouts.
But Andrew Furuseth, the stern old
fighting president of the Seamen's
Union. opposed such a projected bill.
He declared that it would arm the
equity courts with far greater power to
restrict union action than they ever
had before; that it would, instead OF
helping the situation, only muddle and
confuse it.
Upon one thing, however, labor is in
unanimous agreement-that is, that the
situation ought to be cleared up so that
there would be no such things as court
injunctions granted against labor I'M
ions in labor disputes.
But how TO bring this about in the
most effective way is problem which
has not yet been solved.
Canadian Wheat Situation.
The Canadian wheat situation is not
healthy. Waiting for higher prices, the
Canadian wheat pool has stored a great
quantity OF grain in terminal elevators
on the Great Lakes, in Montreal and
along the ST. Lawrence It's grain fills
the storage capacity of Winnipeg as well
as hundreds of it's own elevators. In
addition, more than 200 vessels are
loaded with wheat, unable to move
from Canadian. ports because there are
no buyerS-at present.
European buyers believe that they
can get all the wheat they need with
out paying the price demanded by the
Canadian wheat pool. Argentine grain
at the moment is being bought in
Europe.
But the Canadian wheat growers con-
tend that their hard wheat--the finest
in the worlds needed in order to mix
il with the lower grades sent to Europe
from other counties. Should such
prove to be the case, the Canadian
wheat pool should profit handsomely.
Canada expects less by nearly $780,