The Washington times., 1930-05-19
STOCK MARKET
BUSINESS IN
= DOLDRUMS

NEW YORK, May 10 OS0.
Stalemate still prevails in busi.
ness and the stock market.
The stock exchange has been
enlivened somewhat by occasional
spurts developing from special
situations quite distinct from gen.
eral trade conditions; specifically,
consolidation movement in the
public utility industry, where buy
ing for control, offers to exchange
stock, ETC., encourage speculative
activities.
Except for such activity unre-
lated to fundamental industrial
conditions the stock market re-
mains a docile affair.
A cheering note was introduced
to the business picture by sudden
firming in copper prices. There
is no denying that this was &C
cepted in certain important quar-
ters as possibly evidenc1ng turn
for the better in the entire out
look, particularly in arresting the
general decline in commodity
prices.
Yet the week brought little en-
couragement in this direction;
the majority of commodities
showed additional weakness in
prices. And while farm product
quotations of late have been hold
ing within reasonably narrow
bounds, there is an undercurrent
of nervousness that q renewal OF
the serious downward swing IN
this list, especially wheat, is not
yet improbable.
Longer-term aspects OF tne
present trade depression hold
the center of the stage in bank
ing and economic discussions.
The American foreign trade tlg-
ures for April were highly dis
couraging, particularly the con-
tinued decline in exports.
Banking authorities in the
early stages of the current trade
setback signified chief interest
in the course of our international
trade, stressing the fact that the
United States is dependent on
foreign business for the balance
between prosperity and dul1neSs
in home trade =,
That excess of exports in April
was greater than for the same
month of 1929 is virtually
ignored by soundest economic
students who are more concerned
with the s1arp decrease in our
total foreign trade.
Nor can the decrease in April
external trade be attributed in
more than minor decree to
lower commodity price levels.
Prices on the average are down
but 7 per cent from year ago,
while decrease in exports equals
81 per cent, in imports Is per
cent, and total foreign trade de-
clined % per cent. Worldwide
business depression undoubtedly
finds reflection in our foreign
trade figures.
While this trend is clearly
demonstrated, political chickering's
at Washington continue to hold
up the rates of the proposed tariff.
Retaliations threatened by other
nations, including Americas best
customers, have lately measur
ably weakened the obstinacy Of
old-line high tariff proponents.
Yet the uncertainty still exist
ing regarding final disposition of
the tariff in itself creates addi-
tional nervousness among business
men. Demand is made for imme-
diate decisive action. At least
then the business world can ad-
just itself if need be to the new
conditions.
And the stock market? Con
fronted with a multitude of con-
flicting developments and pros
poets, the speculative and invest
ment markets are witnessing in
ths mean an intermediate period
during which the optimistic and
depressing prospects are being
weighed.
One certainty in the present,
situation is fuller real1zaC1oh tnaC
the public can hardly be counted
upon as an important element IN
the stock market for some little
time to come.
Too severely injured last year
and it's spirit again rudely Jared
by the more recent sharp setback,
the public requires a period OF
recuperation. But it will require
definite evidence of trade better
ment to revive general speculative
interest in stocks.
In the interim the stock market
continues a highly professional
affair with meaningless f1uctua-
tions in the majority Of issues
and with little reason for attract
ing more than moderate partici-
patton.