Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-01
Market Upswing Has Pushed
Averages Above the Levels
of September.
BROADENING INDUSTRY
HAS Hr' PED CONFIDENCE
Rise in Commodities and More
Stable Money Conditions Prove
Constructive Factors.
BY CHARLES F. sPEARE.

Special Dispatch to The Star.
NEW YORK, october 31.-There has
been good news and bad news this week,
to which the response of the stock
market was at first indistinct, suggest
| ing uncertainty over the effects of
events here and abroad, but finally was
definite. 1t is comforting to know that
after a month Of profoundly signif-
cant happenings around the world, Oc-
tober ends with average prices Of stocks
above the level of September 30.
The public Is gradually becoming
more sane in its attitude toward finan-
cial conditions. While Wall Street is
conscious Of this, it has this week
shown new symptoms Of hysteria. There
has been much of what might be called
'blacklegging" going on there. Refusal
to accept as helpful the various con-
structive proposals, all of which have
had their origin this month, has been
conspicuous. Obviously, the situation
demands immediate remedies. Because,
therefore, the National Credit Corpora
ton has not checked the failure of
banks or the Interstate Commerce Com
merce Commissions rate decision has not
prevented railroads from reducing or
passing dividends, or the astonishing
success of the Conservative party in the
British election has not stopped the de-
cline in sterling, Wall Street has had
nlcments of deep despair, expressed in
cynical attitude toward all Govern
ment measures Of relief.
Better Sentiment Develops.
These processes are of slow develop
ment and compel patient reception
Essentially they are sound. Already
they have created sentiment through
out the country reflected in less hoard
ing of money, gradual broadening out
in industry. an improvement in COM
modify prices and greater faith than
has been exhibited since last June In
the ability of nations to get together
and adjust their economic differences.
The Willingness OF the directors of the
United States Stell Corporation and Of
the Bethlehem Steel Corporation to con-
tinue dividends on their common stocks
at the former rates, although neither
earned the three month portion of its
preferred dividend, is an expression of
coincidence by the arrangements of these
companies in q betterment of under
lying conditions.
The situation abroad has come to the
recognized in the United States as the
one that must be improved before the
industrial and credit structure here can
be strengthened. While there was
nothing much that was concrete in the
Hoover-Laval statement Monday. it
contained implications that gradually
are being expanded into evidences of a
rapprochement between France and.
Germany. From this the settlement of,
nrst, the disposition of short term Ger
man credits and second, reparations
payments, should be the outcome.
The broader view of the British cleo
ton Is that 1t gives England a business
government and helps 10 re-establiSh
British trade and British credit This
IS OF greater Importance TO the United
states than any loss In exports that 1t
may be compelled to take in consequence
CT higher British tariffs. It is also i'm
portant to consider that France has
nnally realized she cannot play a lone
hand either in finance or in politics
and continue to draw gold from every
quarter without bringing down disaster
upon herself
The turn in the exchanges this week
mas made 1t clear that the European
lear of the dollar has vanished and it
would not be surprising to see exchange
soon at the importing point.
Stable Money Conditions.
The week. has been freer from money
assurances than those Immediately
preceding 1t. No change has occurred
IN the Federal Reserve rediscount rate
rms has taken some of the pressure
from the market for Government is
sues. The effects of the rapid transition
from extremely low interest rates to
IhoSe that are about normal for this
season from year to year have not worn
Oh ana are visible in the continuance
Oh price generalization in municipal
| oonos and the higher corporation is
sues A factor entering into the former
. 3 the loss OF income, which States par
IcuAarly have incurred as a result of
! the depression. 1t is understood, for
instance, that this shrinkage to New
YORK State in income taxes, taxes on
slshSIerS, ETC., will amount this year to
DetWeen $25,oo0,000 and SIC, zoo, 900.
en- Top OF this is the necessity which
states ana cities are under of charging
Iner expenditures through borrowed
money 70 meet their local unemploy-
ment conditions.
On tie industrial side of the picture
thlS week is slight advance in the
| iate OF iron and steel production, stead
mess IN oil prices, larger sales of metals,
an expansion in the operations Of textile
,litIIS IN those centers not affected by
LaDoT troubles. supplemented by sur
Wy oy the National Association of Man
;uiAceurers which indicates that trade
Is making slow gains. and that in
se4IorleS are at the lowest point in
years. The status of the wheat-growing
SeC'lohS OF the country has been helped
ny an advance in grain prices-pro-
noted by speculative interests, to be
sure, put backed by strong statistical
position While October has approached
the record Of last December in the
humber OF its bank failures. it is en-
couraglng to realize that these tapered
OH sharply in the last week Of the
Rail Dividends Omitted.
The unhealed sore is the railroad sit
| uatlon. This infects other business
conditions, which viii languiSh until
the carriers are restored to q certain
measure Of health. It is Just as neces-
saLy 70 build them up that American
: INDUSTRY shall recover as. that Germany
oe put back on her feet for the good
o. europe. This week has witnessed
ne passing Of the dividend on Illinois
: Isil.xaI common stock for the flrst tifne
nee Civil War days. similar action oy
the Central Railroad of New jersey,
9!VsTS eorsiEece5 enc Of the sr.ssocrats
,Il1on2 r14lrosGs. and reduction IN the
1lflcelei on Pennsylvania stccl. tnS
Lost RS2ely held issus OF its klno.
~lacs the beginning Of the year over
seo.a OF prominent steam carriers nave
/ ossn compelled to make a downward
reg-s,nn In their profit-sharing poilcy.
vi thsse no fewer than so per GEM
mare entirely omitted dividends. Witnln