Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-28
STOCKS ARE CLOSE
TO OCTOBER LOWS
BuIIish Sentiment Subsidies
in Wall Street as Market
Sells OFF.
BY JOHN L. COOLEY,
Press Financial Write


NEW YORK, November 28.-The
financial community took inventory
this week and found that its supply of
optimism was running low for the mo-
ment.
Declines that had been simmering
since early in the month expanded
when the railroad wage issue went over
into December, when steel production
Slackened and when the reparations
problem came more clearly into focus.
Many stocks including American Can
and United States Steel, as we'll as rail-
road shares generally. went to new lows
and the whole market bent so sharply
that the average lows of october 5
came startlingly near.
Bonds Also Decline.
Bonds were unable to shake off their
old habit of following stocks. Railroad
obligations averaged down to a new
minimum and. while second grades old
at their largest discounts, the absence
of strong demand for gilt-edged is
sues was conspicuous. The market
continued thin and once again it was
pointed out by bankers that consider
able discrepancy existed between real
a1lu QuOtCu NdluCS al IIldIly AloIdIlNCc
Although short selling has probably
increased to q marked degree-esti-
mates of the current short position ran
as high as 100000 shares-offerings
have undoubtedly been coming from
holders both large and small, who
bought on the october rally in the be-
lief that signs of business recovery then
apparent warranted long commitments.
In addition to discouraged liquidation,
I. T-~kg l.. - -.
The weeks trade news was bright
ened by word that the Ford Motor Co.
was to go into production of new mod
els about December Is, which means
the placing of heavy orders for steel
and which doubtless will accelerate ac-
tivity by other producers. The steel
industry normally tapers of toward the
year end, strengthening again later in
the Winter but conditions are so alb
normal that forecasters hesitate to
make predictions as to what will hap
pen next month. There are those who
believe, however, that steel output may
take new low for the depression in
December.
Premier Laval's statement that France
would insist on priority OF reparations
payments over GermanyS private in
debtedness, and that she was willing to
reduce reparations only in proportion
own foreign obligations was reaff1rma-
ton of the French position as under
stood here. Meanwhile, the premier
said, France will await action of our
Congress on the Hoover moratorium,
and also the report Of the International
Bank Experts Committee before max
ing known her definite position"
Total Is Reduced.
Although there was tendency In
some quarters to be gloomy over M.
LaVal'S pronouncement, it was pointed
out elsewhere that much Of the German
Short-term credits should have been
liquidated by the expiration of the Hoo
yer moratorium on June 80 next, and
that meanwhile there were to be no
reparations payments. AS for the credits
themselves, it Is currently reported that
repaymentS so far made have reduced
the international total by about one
quarter billion dollars, and that by
February 90, when the present stand
still agreement expires, the volume viii
probably have been reduced consider
ably more. The remainder will, bankers
say, undoubtedly be renewed