Evening star., 1930-11-30
STOCKS DEPRESSED
BY SHORT SELLERS
DURING LAST WEEK
Market Gives Evidence of
Being Thoroughly Liqui-
dated-Averages Firm.
RAIL LIST BEARS BRUNT
OF PROFESSIONAL ATTACK
Bank Situation Improves and
Alarm Over Grain Values
Has Subsided.
BY CHARLES F. SPEARE.
.cial niepatch IN Tho Star

DG NnAKSAES II. OEEAnEs
Special Dispatch to The Star.
NEW YORK, November 29-It Is
easy to become impatient over the slow
progress being made in business and
market conditions and to be apprehen-
sive when, as this week, stocks resume
their downward trend. That we are
gradually coming up out Of the valley of
depression is, however, a fact supported
by evidence in several directions.
To illustrate: Copper metal was ad-
vanced to IL cents pound after de-
clining so per cent. It has fallen back
to 1015 cents, but it holds steadily a
cent pound over the low Of october.
For nearly six weeks the price of iron
and steel manufactured products has
been maintained at a fixed basis, al
though the output of the industry has
declined until it is now Al per cent Of
capacity.
The textile trade has consolidated its
gains and is in relatively good posi-
ton after two years of distress. The
latest figures of earnings of the public
utilities indicate a small increase in
gross and net over the first nine
months of 1929. Only half the dividend
cuts reported for october have been
announced for November, with none
this month as significant as those COM
PEELED in the earlier period. And, in
spite of the secondary reaction in securl-
ties now taking place, the New York
Stock Exchange figures for November
will show more satisfactory plane OF
valuations than those of the two previ-
GUS months.
Bank Situation Improves.
Last week the Eastern banking COM
munity was disturbed by the epidemic
of failures in Tennessee, Kentucky,
North Carolina, Missouri, Indiana and
Illinois. Some of the institutions that
closed have been reopened. A few new
but unimportant suspensions have oc.
Cured A situation in New York that
had been giving considerable anxiety
has been adjusted through the efforts
of the New York Clearing House As
sociation.
There has been an absence Of the
ALARMS that ran through the grain
trades of the United States and Canada
fortnight ago. Some progress has
been made in stabilizing the oil in
dustry, though this Is far from being
in healthy state. Merchants who
have been praying for cold weather,
as the farmers last August petitioned
for rain, now have it. 1t is a good
augury for holiday trade. Abroad there
toriums and debt cancellations, but,
in quiet way, conversations have been
going on whose importance in inter
national finance will be disclosed later
Record Dividend Payments.
The dividend and interest payments
to be made on Monday will exceed
those Of the same period In other years.
It Is the rule, rather than the excep-
ton, to find an industrial company
whose current statement shows a
smaller inventory than last November.
Frequently it has a higher proportion
of cash and marketable securities than
during its most prosperous days.
AS a whole the stock market has
been well nquidated. The pressure
against it in this short business week
has been from the professional trader
and not from the investor. The for.
mer laid OF" for awhile from his
regular occupation of abusing values
and gave the Street an opportunity to
regain part Of its courage. With aver
age prices recovering about 20 per cent
Of the September November decline and
investment purchases dropping, he has
resumed his activity and the rumor
mill Is again grinding out false state
mentS.
1N@SA 6AAe&kGS 1ACoVuy SUlUs
The point of least resistance in this
weeks market has been in railroad
shares. Each month witnesses a spasm
of selling of rails as gross and net
revenues reveal heavy losses, compared
with one and two years ago. The Octo-
Der returns are poorer than anticipated.
In spite of this great decline in net,
a large proportion of the carriers are
earning their dividends Few contem-
plate any change in their payments to
shareholders in the next six months.
Only two important railroad dividends
have been affected in year, when over
900 corporation dividends have been
reduced or passed. And they are
balanced by increased dividends.
In the sporting parlance of the sea-
son, the railroads are now down on the
five-yard line. Their executives have
gone into a huddle" They have their
backs up. They have plenty of re-
serve strength, but good generalship,
some substitutions In the lineup and
teamwork are necessary IL they are
to win out in the present crisis.
(Copyright. 1930)