Evening star., 1930-06-21
INDUSTRY REACTS
TODROP IN STOCKS
Some Lines of Business Are
Adversely Affected by
Securities Decline.

Whatever the cause of this weeks
drop in security values on the ex-
changes, the fact remains that this de-
cline has had @ marked effect on busi-
ness sentiment and has tended tempo
rar1ly at least, to slow down operations
in some lines.
In many quarters the tariff is held
to blame for the situation. In other
quarters this idea is denied. On the
one hand, fear Is expressed that the new
rates will further cut down foreign trade.
On the other, it is held that the bill
lust signed presented no surprises and
that every business man has had
chance to adjust himself TO the probable
course OF events in commerce and in
dustry resulting from the introduction
of the new regulations.
Foreign Trade.
In the 13 months that the tariff bill
was under consideration, advocates of
the measure point out, equal opportu-
nifty was given for all interests to make
their protests heard. They add that 1t
was not until the measure was on the
point OF going into effect that some bus
mess interests made vigorous protests,
Government officials believe it is be-
yond possibility for any one to measure
accurately the effect of the tariff on
foreign trade Immediately Foreign ma
tionS must find out how the new meas
ure works out before they will be in q
position to institute reprisals or cut
down trade volume much below present
levels.
Some judges of market conditions de-
clare the stock slump grew out of a fear
OF further business curtailment. If this
was the case, the slump probably has
| had the effect of forcing such a business
curtallment, not because of economic
conditions, but because Of psychological
condltlonS. 1t Is pointed out that many
business men take the trend of the
stock market as barometer by which
10 gauge their operations. These men
apparently DO not take account of the
fact that In the stock market there is
always one group vitally and directly in
tereSted In producing a certain trend of
sentiment, whereas there is another
group equally interested in producing an
entirely opposite sentiment Stock mar
ket operations, therefore, are to be
regarded as an entirely unprejudiced ex-
preston of opinion.
Desplte the uncertainty caused by the
fluctuations in stocks, operations in in
| dustry throughout the country are pro-
ceeding at a pace only slightly dinin-
lShed. This is especially true Of steel.
1000 products. building, manufacture
OF electrical equipment, and retail trade.
NOSSA wei dtAOLAS are SClll on q steady.
| sound basis.
The automobile industry has Stacked
somewhat, but this is due in no small
part to the preparation of new models
to be issued in about a month. This
work does not show openly because the
models will not be available for distri-
button and sale until after they are
| formally shown.
Summer Freight Shipments.
The railroads are beginning to feel
the improvement in Summer freight
shipments. The harvest is moving from
the Southwest, and freight loadings are
increasing in consequence. Coal move
ment Is fair, with the utilities and rail-
roads doing most of the heavy buyinR
Crude oil production shows a Slight
decline, but not enough materially to
anect heavy stocks in storage. Refin-
cries are operating at more than 95 per
cent OF estimated capacity, with an
average OF 3,526900 barrels a dav run
through the stills. but stocks of gaso-
llne In storage have shown a decline
cement prices show little change,
(Copyright, le3oO