Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-16
Bottom of Market Now Be-
Iieved to Have Been Touch
ed Last Wednesday.
BOOST IN COPPER PRICE
WAS SIGNAL FOR UPTURN
Brisk Gains in Many Groups Fol-
lowed Rise Of Metal
Shares.
BY CHARLES F. sPEARE.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, November 15.--Holders
If securities can today scan the week
end tables of quotations with more sat
isfaction than for many months. The
week has brought out constructive
tendencies in the stock market and in
business of greater proraise than any
witnessed so far this year.
It now seems probable that the low
POINT in industry was reached In Oc-
tober and that the bottom for stocks
was touched last Wednesday In the low
est composite price since the first half
OF 1927. Coincidentally, we had wheat
and other grains quoted on basis SIM
liar to those in the hard times 80 years
ago.
The business index, having fallen ~
per cent between May, 1929, and last
month, was 2 points lower than the
minimum figure in 1921. Agricultural
products were not only lower as class
than many of the present generation of
producers had seen them, but other
staples were at a historic low.
Yields Tempt Investors.
To further strengthen the technical
position Of securities and commodities,
we had the former this week debated to
a point where income return gave the
greatest temptation to both investor
and Spectator since 1921.
The market on Wednesday morning
touched an average nearly 100 points
lower than in the April rise. It was
over so per cent down from the high
average Of September, last year. In two
months the industrial averages had de-
clined IS points; the public utilities and
rails 30 points. In so days the value Of
all listed stocks had shrunk nearly S15,-
0O0, 100000. American Telephone a.
Telegraph was selling to yield per
cent, Consolidated Gas about the same,
United States Steel nearly 5K per cent,
Atchison 5lz per cent and Pennsylvania
over per cent.
Then came the announcement that
the price of copper metal, which had
had been raised to 10 cents. It has
since sold at IL cents.
Stocks Heed COpper'S Signal.
The date Of the recovery in stocks
and in commodities may later be def
nitely fixed at the hour and on that
day when copper producers raised their
price. The mood OF the market, while
one of deep surface depression, had
been changing steadily because Of the
conspicuous values offered, not alone for
securities, but for commodities. It re-
quired only some concrete expression Of
confidence to let q little sunlight
through the clouds that had hung over
the country for so many months. The
fact that other commodity situations
were In process Of correction and that
distressed market and credit situations
were also being relieved gave further
encouragement.
Another constructive development has
to do with the Eastern railroad merger
plan. This has been informally dis
cusSed for two weeks by the executives
Of the trunk line carriers, who, for the
first time since 1928, have been sitting
around the table with q new spirit of
friendliness toward each other, trying
to work out an arrangement that will
strengthen transportation conditions in
their territory.
Political Outlook Encouraging.
announcement has also come this
week from the cooperation between the
two great political parties In this coun-
try. This removes from the realm Of
possible business disturbance O discus
sion over tariff revision and the delays
and petty annoyances by which bust
ness is upset in q prolonged session Of
Congress.
OF all of the countries in the world,
the United States should show the first
and most vigorous recovery. In spite
of its economic problems, 1t has not the
handicap of a political division or the
constant fear of war that weighs down
so hard on all of the nations of Europe
The rest Of the world, and particu-
larry Europe, viii improve as the United
States RECEIVERS its nerve and again
becomes q buyer. There are funda-
mental changes, however, that must be
made In Europe before itG economic
health is restored. It is here that
leadership from the United States is
called for and seems to be developing.
with the prospect that next year will
witness conferences as important as
those that produced the Dawes plan
in 1924 and the Young plan in 1929.
(Copyright le3O)