Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-22
BY JAMES b. CLEws.

Special Dispatch to The Star
NEW YORK, August 22.-In spite Of
pesslmistic predictions of the familiar
variety, the market has continued to
hold its own well, and, on some days.
has shown unmistakable strength. The
volume of business has continued to
be relatively small, out there is clear
evidence of the growth Of genuine in
vestment demand. The prolonged hot
weather and the fact that many va
|, cations have been extended lar beyond
their usual scope, either through choice
or as the result of business inactivity,
have done their share toward reducing
the turnover of trading. But the signs
Of revival are already being noted here
and there and, as the close OF the
Summer approaches, there will be
continued increase IN tine amount OF
business. As for business and economic
symptoms generally, they are In the
main encouraging. 1t IS not likely
that there will be any sudden restora-
ton of full activity, but there Is no
reason why there should not be very
marked growth during the Autumn
months.
Signs Of Business Revival
yiyal have often been mentioned the
marked restoration of the consumption
industries of New England and the
South--shoes, cotton, textiles and wool
ems. These industries have shown that
their recovery is not a flash in the
pam" but is evidently founded upon
real growth of solid demand. During
the week Just past there have also been
some ENCOURAGING indications with re-
Tn "a tTff4l1EfrV
of production seems 10 have reached
the low figure and is beginning to climb
inward. Some large building projects,
recently announced, may be expected
to give a backlog OF demand and
there is likewise good reason to believe
in a somewhat larger purchase OF ma
terial for automobile construction. II
the rate increase, now under consul
Grafton before the Interstate Commerce
Commission should be granted AT an
early date, railway buying Wiil De one
of the first features Of the Fall market.
There has no doubt, grown up IN some
MINDS a fear that the commission mas
changed the determination
supposed by many TO nave Oeen
reached-to grant at least portion %
the railways legitimate demands. For
this oninion there would appear, how
ever. to be, thus far, no warrant. Inc
chiefly disappointing thing about the
Y,rocod,Ire is merely that the commits
sior seems to have thought 1t lncim-
bent upcn the members 10 retain every
shred of red tape in their procedure
that has been evident in the past. ms
may have been necessary or unavoloa-
BILE In view Of the determined opposi-
tion that the advocates OF the rate
advance have been obliged 70 face, put
Il has clearly discouraged many VINO
have been inclined to look forward WITH
authorization 10 a favorable, and early,
decision in the rate case and is Largely
responsible for the continued ueciIle III
railway securities. Other business gives
ground for belief in the fun seasonal
upturn that should be reallzeo ouIh ls
tbe Autunnn with It there ought TO
90 a better volume and larger lnVesI-
Ynent demand for stocks.
Adjusting Credit Conditions.
The week has been fruitful in the
DEVELOPMENT of the credit SITUATION,
both at home and abroad. Practlcsi
decision has been arrived at IN Basic
by the Committee Of Bankers there as
sembled with reference to the major
elements In the German snort-term
credit probIena. It could not have been
exnected that any committee would be
/ able Ia render the whole mass OF ooil-
| cations at once liquid. and this one
| has not done SO. What 1t has done is
apparently TO get from the Germans the
| pledge of all the short-term resources
| mat are likely to be available for the
purpose of restoring the hquidity OF
| the balances and acceptances which the
/ foreign banks have been holding. Mean
time, dificulties in domestic banking,
| involving q group Of bank failures IN
| the Middle West, are the result OF APP
! parertly exec Ssive long-term automobile
1 financing on short-term funds: the
| foreign credit situation paraIleled in
| the domestic field That there we're a
number of sore spots" OF this sort here
and there, throughout the country, has
been apparent for good while past.
REORGANIZATION Of affairs In Chicago.
some weeks ago, cleared UP one Of the
worst such spots, and similar meas
lures have been called for IN q number