Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-09
BY DIR. MAX WINKLER.

President Hoover's plan for the pur-
pose Of bringing to an early end the
existing economic crisis is assuming a
much more anlbitiDus character, than
any project which has thus far been
evolved. A sincere effort is being made
to cure all, or at least most, of the
financial ills with which the United
States is afflicted; The President is re-
ceiVing most cordial cooperation from
the Nations leaders, industrial and
financial as we'll as political, which
augurs we'll for the success of the plan.
1t is, however obvious that the stu
alton cannot be altered overnight but
one is justified in feeling that conf
dence is being restored, which is per-
haps the chief prerequisite to more
complete and lasting rehabilitation
Developments from now on are con-
fidently expected to be of a construc-
movements in the prices of securities
and commodities cannot be predicted,
the situation. viewed from the long
range standpoint, seems distinctly
promising.
Steel Shares Improved.
Improvement in the price of leading
steel shares may be attributed to the
fact that the demand from automobile
and miscellaneous industries has i'm
proved appreciably. AS a result, steel
makers in the youngstown district an
ticipate an increase in steel ingot pro-
duction to about As per cent Of ca
paclty.
Earnings for the first eight months
are equivalent TO the full years diyi-
dend Of 81 so u share on Continental
Can, according to a statement by O. c.
Huffman, president of the company. AL
though canning crops are expected to
be below normal this year and will re-
suit in reduction Of profits for can
manufacturers, this condition should
prices of canned foods and preventing
large carry-over into the new can
ming season.
A movement. backed by leading
American bankers is on foot TO stimu-
late the purchasing power of the people
and thereby check the decline in COM
modify prices.
Sterilization Needed.
While this effort on the part Of
American fnanciers is highly COM
mendable. it is difficult to see how it
will be possible to accomplish this re-
suit. Prices of commodities or securl-
ties, even though unjustifiabiy low. can
not be altered by DEGREES. Furthermore
artificial stabilize ton has rarely II ever
afforded more than temporary relief.
1t should, however, be borne in mind
that no situation can last indefinitely
where commodities sell materially below
the cost of production or where Securi-
ties are quoted substantially below their
inherent values.
From what may be regarded as a
thoroughly dependable source it has
been learned that good deal of the
recent selling from abroad was for
short account and that Paris was par
ticularly active in that connection due
to rumors circulated in France regard
ing the alleged unsatisfactory conditions
obtaining in the United States, and
which rumors in point viciousncSS
greatly surpassed those spread by
Americas own destructive forces in
their own country.
French Sold Short.
Paris was convinced that short SELL
ing constituted at the moment the most
promising business. They went so far
as to endeayor to sell u. S. Government
bonds short and for the purpose made
inquiries at American institutes as TO
whether it would be possible to borrow
bonds for delivery. This would seem
to be one more reason against short
selling in times of stress.
The seven South American republics
which have borrowed in the United
States, and. whose securities are held by
American investors, spend annually
more than 100000. 900 in connection
with the maintenance of their armies
and navies A reduction of only IS per
cent would be equivalent TO more than
per cent on the present market value
Of all the doller bonds outstanding.
Inasmuch as racial enimosities and
national hatreds are less marked in
South American countries than in Eu-
rope. it would seem quite within the
bounds of probability for the various
republics to put into effect a reduction
in their military expenditures of at
least IS per cent, which should go a
long way toward inspiring confidence in
the thousands of holders. of South
American loans which are, in many
cases, quoted at prices which absolutely
border on the ridiculous. The holder
of such bonds awaits only a ray Of
cheer, and such an announcement as is
suggested would be greatly appreciated.
(Copyright 1881. by the North American
Newspaper Alliance, 1ncD