Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-24
markets REFLECT
| BETTER BUSINESS
Change From Hope to
Achievement Manifest; Com.
modify Prices Higher.
BY JOHN L. COOLEY.

ASSOclAto0 ETOSS FINANCIAL Writer,
NEW YORK, October 24-The tran
sition from hope to achievement appears
to have made q little progress In the
business and financial world this week.
The outstanding change for the better
was an advance in commodity prices.
Against this had to be weighed slight
receSsions in steel ingot output and
freight car loadings, but optimists were
willing to overlook such tendencies and
to stress the gains made by numerous
raw materials. Firm quotations for
staples, II sustained, would mean that
buyers were regaining confidence, and
1t was pointed out that the first place
TO look for change in the basic trend
was In the commodity markets.
LavaPs Visit.
Premier Laval's visit to President
Hoover and the freight rate decision
overshadowed other news events. What
ultimate results either is to have were
not Immediately apparent, although the
security markets, at first glance, were
unfavorably impressed by the Inter-
state Commerce Commissions offer Of
help, to which was attached the string
OF pooling increased revenues.
The dollar strengthened across the
Atlantic, especially at Paris. How much
OF our gold loss has been due to fear
for the stability of Americas currency
is problematical but the relaxation Of
pressure was welcome not only because
1t slackened the gold movement, but
because 1t indicated Europe was becom-
Ing convinced that the dollar was firm
ly anchored to gold
Although the railroads had hardly
expected the full Is per cent rate in
crease would be granted, they seemed
surprised by the pooling proposal that
featured the commissions decision. OBJ
jections were Immediately raised to q
distribution Of increased revenues with
out compensation, and steps were quick
~ taken toward obtaining a modifica-
ton of the opinion on that point. Mean
while, the carrier executives have de-
cided to let the wage question rest for
the time being.
The stock market rallied Monday and
Tuesday, sagged on Wednesday and
Thursday and then rose again on Fri
day. Technically. the advance yester-
day was viewed as encouraging, since
on the previous dav the rail group had
about duplicated the lows of the pre-
vious week, when a secondary reaction
was completed, and a continuation Of
the decline by the carriers would have
lIdO uLlldfOIdDlt lNlpllCdLlOIlS. OUCH
selling as occurred during the week
was of desultory nature. and trading
was much more active when prices were
rising.
Earnings Statements.
Sections of the bond list displayed
more stability. The foreign group was
generally strong, and United States Gov
ernments, meeting less competition from
the money markets. firmed. Rails were
affected by the uncertainties besetting
the roads. including the knowledge that
some lines are earning their fixed
charges by only small margin.
Third-quarter earnings statements in
many instances are certainly no more
disappointing than had been expected
and have had scant effect on the mar
ket. Next weeks report b. United
States Steel probably will show little
available for the preferred from actual
operating revenue, although there are
reports that sufficient special income
will be available to cover the dividend
on the senior security. What decision
the directors will make on the common
payment is open to quest-cn in Wall
Street. Nevertheless. manv believe the
regular disbursement will be voted out
of the ample surplus.