Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-10
OPINION ON STOCK
TREND IS DIVIDED
Sudden Advance and Expan.
sion of Trading Recalls
1929 Market.
By JOHN F. SINCLAIR.

~------=
By JOHN F. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, February lot looked
like old times yesterday in Wall street.
The Stock Exchange, with turnover Of
100000 shares, enjoyed the largest
trading day since December II, when
100000 shares changed hands. But
there was this difference: Yesterday
the prices rose briskly, while in De-
cember stocks reached new lows on q
bear market.
General Motors made q new high OF
42H, UP as points; y. 8. Steel COM
mon closed at 1885, 3 points
higher; Auburn Automobile was up 1874
points, closing at 17412: du Pont made
as points, closing at 9134, and Case
improved 6h points, closing at 99&.
The Dow-Jones averages for indus
trial stocks was up 1872 points. Every
body looked happy-all except the
bears, and they never look happy, even
when stocks 60 down.
Has the long-awaited stock market
rise actually begun? Many believe it
has Others are not so sure.
The Brookmire Economic Service does
not think so-yet. It says:
TT Is becoming increasingly evident
that the general business situation does
not yet justify q broad advance in
common stock prices. Purchases of
common stocks can be made with more
confidence . little later. Continue to
maintain cash reserves
So there YOU arel Take your choice
Crude OIL Imports.
Last year 81, OO0, 900 barrels of crude
OIL were imported into the United
States. mostly from Venezuela and Co
lombia. II the Capper- bill is
made law, these figures would be cut
to $1,000, 900 barrels year. Besides
refined oil would also be excluded.
The United States Tariff Commission
has made public its findings showing
that it costs $l.08 TO produce one barrel
= OF crude oil in the Midcontinent fields,
including transportation charges 70 the
Atlantic seaboard, as against 70 cents .
barrel from Venezuela, laid down on the
Atlantic seaboard. So the drive to make
the Capper-Garber bin law Is on. It
will be a bitter fight
While 1t is true that only Z per cent
Of the crude oil refined in this country
In the past two years has been ina
ported, the amount has been growing
very rapidly recently. Nearly all Of it
Is coming from Venezuela and Colombia.
Naturally, these countries are very anx-
tous over the situation.
Nevertheless the fight to put at least
q tariff Of 81 q barrel on crude oil and
20 keep out all refined oil has started in
earnest.
The shelI-Union on Co., subsidiary
Of the Royal Dutch Co. Of England,
largely controlled by Sir Henri Deter
ding, would be more seriously affected
by such q tarn than any other COM
pany, for the Deterding company is the
largest producer Of oil in Venezuela.
State Insurance.
Col. Malcolm r. Rorty, vice president
Of the American Founders Corporation,
thinks State control Of unemployment
insurance would be fatal. He believes
voluntary agreement between employers
and employees Is the first step that
followed by legislation authorizing wage
deductions under specific conditions.
But one thing seems very certain
that the cost Of unemployment relief
and Of regularizing employment, like
the cost of WOrkmen's compensation,
should be placed directly upon the cost
Of the product and should be paid by
the consumer-in effect as q sales tax.
we might better attempt to nurse
live fattlesnake than to permit cent
Of taxes Of public money to be used
for unemployment insurance" said Col.
Rcrty.
That's . strong statement to make
business doesn't get started, the Gov
eminent may step in and attempt to
formulate q plan Of action.
Change in Business.
Prof Walton H. Hamilton of Yale
ness ''tne great American collectivism, :"
thinks that any effort which aims TO
restore the old individualism In the
business world is q waste Of time and
that business from now on must be con-
sidered In terms Of the whole group.
Nor does the professor believe that
economics has kept pace with engineer
ing, or the art OF technology. No cau-
tiouS or deliberate effort has been made
'to set our economic house In order. "
The little that has been done Is, for
the most part, the work Of business
men who have been looking ahead, or
1t has emerRed as . by-product Of the
application Of business minds to their
own particular affairs" says the pro-
lessor. I'm all Of US there has been
little regard TO the nature of an In
dustry and the incidents of immediate
activity upon the economic order. We
need, then, to recognize the necessity
for control"
Then how will business control-now
% evidently absent-be brought about?
1T will come, when 1t comes, through
the creation Of government of BUSH
ness, within business; q government
which viii not lose sight Of the ends
and will employ technical industrial
processes and mechanism In the service
Of an economic order" says the pro-
fesSor.
But when Prof Hamilton was asked
the way out Of the present worldwide
depression he replied, very frankly, Il
do not even know the way to the way
out"
That statement is like dash Of cold
water. which is both shocking and re-
freshing-for its candor.
Stability Of Employment.
Restore confidence by insuring sta
bility of employment says Julius H
Barnes. chairman of the Board Of the
National Chamber of Commerce.
It's q good place to start. II q num-
Der Of the leading American industries
would Immediately assure their workers
that they would be given uninterrupted
employment and sustained earning ca
pacity, there is no question but that
buying would increase. As 1t Is today
without knowing what's ahead. even
those who have the money TO spend are
holding on to it.
A beginning has to be made some
where. To restore confidence is the
FIRST in importance. Why not begin
right here?
Copyright, 1881 By North American News
paper Aiianee)
EARNINGS REPORTED.
NEW YORK, February 10 CR.-
Transue O. Williams Steel Forging Cor