Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-26
COMMODITY GAINS
ARE BUSINESS AID
Recent Firmness in Markets
AugurS Well for Trade
Recovery.
BY CHARLES W. STORM.

EDITOR the news service Oh WAL otIee1
Special Dispatch TO The Star.
NEW YORK, October 26.-Much has
been said about the good expected to
come out of the Hoover-Laval confer
ence but perhaps the most important
underlying factor making for better
ment in the general financial and bust
ness situations is the recent upward
movement in the prices Of commodities.
This has been particularly empha-
sized in the wheat market, where prices
have advanced about 10 cents a bushel
from the recent low levels. The down.
ward movement in the price of wheat
was one of the most important de-
pressing influences on the security mar
kets. The depreciation In the price Of
this commodity was also very impof-
tant factor In contributing to the busi-
ness depression, owing TO the sharp
contraction which It forced In the pur-
chasing power Of the farming con1mu-
mites
Further betternrent in the price of
wheat is expected by the more Specu-
lative economists, and some of the big
geSt operators in commodities and
stocks are reported to have made large
speculative commitments for the rise in
the price of wheat. Names heard in
the street as those interested in
the upward movement in wheat are
Livermore, Rockefeller, Howell and Cut
ten. All four have regulations for
their ability to diagnose commodity
markets.
Copper Improvement.
One of the scattered sources of i'm
provement in industry Is found in cop
per, where purchases Of the red metal
the last week have been the heaviest
for many weeks. A flrmer tendency In
prices Is evident.
This betterment In the demand for
copper has accompanied the 1ntornal
conferences being held among foreign
and domestic producers for further cur
tailment of production, but these con-
versations have had little or nothing to
do with the greater inquiry for the
sued the policy for more than year
of buying from hand to mouth.
Artificial Steps.
One Of the topics of discussion apro-
DOS of the reported Improvement in
business is that the steps looking to-
ward sterilization have been artificial
and will result in another period Of in
fiation. Wall Streets students Of po-
litical economy state that the law Of
supply and demand should be allowed
the commodity markets will be the first
to give expression to this expected in
flation.
While 1t is admitted that the initial
steps taken to stabilize banking and
industry were of an artificial nature
the psychological effect resulting from
it has had a beneficial influence A
little more of this sort Of imitation"
would undoubtedly be most welcome.
De -
whether any imitation has really started
In this regard Moody's Investors Serv-
ice says: I'VE do not see how this in
f1ation' could begin Immediately. It
could not of itself restore confidence,
for pumping credit into a frightened
world is like pouring water into q bot
tomleSS well. It can be built up only
on the basis of restored confidence"
Innumerable signs indicate that con-
fdence is being restored, especially
among the important banking and bust
ness leaders.
Important Sign.
The outlook with regard to the resto-
ration of the credit of the railroads
seems brighter than it was, notwith-
standing the supposed diSpleasure ex-
pressed by the transportation execu-
tives over the details of the small rate
increase offered by the Interstate Com
merce Commission.
There probably will be many more
conversations on the subject, but the
railway executives, especially those of
the big roads which have been the
largest money makers, will eventually
"condescend" to accept the commits
sion's gift.
The fact that some important bank
ing interests are known to have been
sellers of some stocks the latter part of
last week puts a rift in the wave of
optimism which had started to sweep
over the stock market. knowledge Of
the character of this selling has caused
some Of the bigger operators to take
position on the side lines.
(Copyright 1891 by the North American
NeWSpapAr Alliance. me