Evening star., 1930-06-11
BANKS IN SUPPORT
OF STOCK MARKET
Investment Trusts Also De-
cIared to Have Aided Yes
terday'S Recovery.
BY JOHN F. SINCLAIR.
al nIrnafrh fn The afar

NEW YORK, June 11-A sharp rise
in stock prices on the New York Stock
Exchange in the last hour yesterday
brought heart to thousands of anxious
traders. For week watchers on the
big board have seen the stock price
level sinking lower and lower. Was
there any bottom? If so, when would
it be reached?
The early trading was very discour-
aging. When the U. 8. Steel Corpora
ton reported decline Of 294,993 tons
In unified orders for May 81, as COM
pared with the April 80 figures, it did
not help the situation any. Then when
Radio Corporation broke below 80 to a
new low it looked like another market
crisis had come.
But the last hour did lot to restore
confidence. Most of the blue chip stocks
registered a distinct gain over Mondays
close General Electric was up 312
points, U. S. Steel S, Radio 8, Para
mount 31a, Standard Oil Of New Jersey
3Ea and Columbia Gramophone 2.
Strong buying support from the banks
and investment trusts entered the mar
ket just as everything looked worst. So
burned fingers last November, has been
cautious about getting back into the
market. Yesterday it was traders
market, and most anything can happen
in such a market.
]. Edward Jones, New York oil-royalty
expert, has brought out some pertinent
facts about the crude oil "overproduc-
ton" problem.
There is vast difference between
overproduction and oversupply," said
Mr.. Jones. THE real condition of do
meStic underproduction has been gen.
orally masked by four things: l. An
improper presentatio nand determina-
ton Of supply and demand figures; 2.
In overlooking the significance OF I'M
ported oil; 8. In misinterpreting the
significance of crude oil stocks on hand;
4. In the indiscriminate, If not 1nsld-
ious, slogan 'overproduction."
Mr.. Jones says that when the adop-
ton of the conservation policy forced
decline in the production of domestic
oil during the week of December %,
1929, as compared with the previous
week, the imports of oil increased cor
respondingly.
Domestic overproduction, except for
short periods and locally, is a myth, ="
said Mr.. Jones, "and a general oversup-
ply exists primarily because of imports.
The 13 years prior to January /, 1929,
represents IL years of domestic under
production and but two years of domes-
tic overproduction."
Crude oil enters the United States free
of duty.
Before attacking the problem of
overproduction in the United States, the
problem of Oil import is worthy of a
serious study" says this New York oil
uyfI1
prising facts, little understood by the
people of the United States"
The Chrysler Building in New York
will have the distinction of being the
worlds tallest structure for about one
year. Next year former Gov. Al Smiths
Empire State Building, now being built
on the site of the old Waldorf Astoria
Hotel in New York, will top the Chrys-
have the worlds tall" crown.
But not for long either. Fred r.
French, the realty expert, Is about to
announce the erection of a 100-Story
building on the old Hippodrome plot,
which he recently purchased.
The Merchandise Mart Of Chicago,
however, is far away, in area, the largest
building in the world. 1t has six times
the area of the Chrysler Building, five
times that of the Bank of Manhattan
Co. and twice that Of the Empire State
Building, when completed.
There are many who believe that the
peculiar location of Manhattan Borough,
N. Y.-Situated on an island of rocks
lends itself to world leadership in height
and that it will remain the real home
of the skyscraper. Buildings from 100
to $50 stories are possible and probable
just as soon as a new and much lighter
floor material, built of steel or some
such substance, becomes popular.
But with heavy floors, a building
reaching up beyond 60 or 10 stories, be-
comes a problem.
In 10 years more the New York sky
line" will be dotted with buildings 100
to $50 stories in height.
(CopyriRht, 1880, by North American News
paper Alliance.)