Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-26

1
for the reaction, have been disap-
And In that year there have beer
but few crumbs of comfort, while
margin traders, wiped out in the holo-
caust were put out at prices many
points higher than present low levels
| and, being out of the market entirely
gradually ceased to worry about 1t ano
turned attention elsewhere.
Just another evidence Of the truth
of the adage that the independent
cash buyer will frequently .overstay his
market in his independent confidence
of a recovery.
And the worst Of 1t Is that there Is
scarcely a readable sign on the horizon
today to indicate taht the end Is at
hand.
We read much in the press concern
ing the current low prices Of COM
modities but fail to find that the lower
figures have been passed on to the
retail trade.
There is in the situation existent
today nothing that Wall Street has
met before. For once, money Is not
the slightest factor in the prevailing
condition. Notwithstanding the fact
that some reputed doctors have ad-
vanced various financial remedies to
better conditions.
Credit is not q scarce commodity
where the applicant Is entitled TO con-
sideration. Bankers are exercising sim
pie caution, safeguarding their interests
and rates are exceptionally low to the
high-grade borrower.
Credit must be given to the Federal
Reserve Board for having stabilized our
monetary system to the point of conf
dence, and changes made In the existing
laws governing the system should be
made only after due elaboration and
by friends of the system.
Senator Glass, chairman Of o special
financial committee. has stated that hts
committee would start an investigation
early in November covering the none
tary systems.
In the meantime consumption Is
steadily going on. Even the great army
of the unemployed. men and women,
must be fed, clothed and housed, and in
time the drain in the stocks of manufac-
tured goods will 60 on until the wheels
will just have to start going round
again, when business will get under way
and gather momentum.
1t may be that our industries have
oyerproduced, that our foreign trade in
the future will not be as important q
factor as formerly, but that Is only O
conjecture.
OF one thing there can be no doubt
and that is that the great home market
as offered by the 48 States can not be
taken away from home industry. Our
neighbors and insular possessions will
not desert America.
Local Securities.
1t would seem as If Capital Traction
shares had finally found a level where
they might rest stabilized and invulner-
able to further raids.
On 4 per cent basis, the present
dividend, the stock Is q much better in
vestment than when it was selling above
par and drawing on its surplus for
much OF the annual dividend. The
Winter should mark increases In earn
ingS as autos are housed and more peo-
pie seek the comfort of the cars. Taxi
competition Is serious.
Mergenthaler'S decline has been COM
paratively moderate. Mercy Is espe-
cially a newspaper typeSetter The
company makes general-purpose ma
chimes for all kinds of typesetting, but
1t has more severe competition in lob
room composition than in newspaper
work. In the latter field there has been
little plant of hard times, relatively
few consultations and much speed,
special issues and growing circulation.
The fiscal year will show the dividend
earned. while the slate is clear Of debts,
bank loans, good will and other dead
weight. Moreover, the million cash and
the Liberty bonds are untouched.
Various Potomac issues are acting
well and all bonds Of the utilities seem
to be holding their own sss.
Bank stocks have been shaded In
many instances, but compared with the
drastic smashes of New York bank
shares the locals are mighty strong.
State banking associations In avery
State win sponsor bills before their
Legislatures for the enactment OF q uni
form law, drawn by the legal authority