Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-20
Brokers' Comment

NEW YORK, August 20.-Stock Ex-
change commission houses, in their
market letters today, were inclined to
the view that further bulliSh efforts
would go forward in the stock market,
but several acknowledged continuing
elements of uncertainty in the situation
and suggested caution. Extracts from
letters fellow
Hornblower & Weeks-Although it
was generally expected that American
Tel. d Tel. would declare the regular
dividend, the declaration Of the regular
dividend for Southern Pacific was net
so certain and may improve sentiment
somewhat toward the rail group. We
are Still confident that the upturn will
again be resumed as the period for sea-
Sonally better business news approaches.
Smith. Graham g. RockwelI-Little
change in the character of the market
seems likely. The dizziness may be fol-
lowed by rally but recoveries will prob
ably not go far in the absence of some
development not as yet foreseen. The
slowness Of business in showing signs
OF improvement cannot be made the
basis Of a bull market.
Shields g. Co--IncreaSing evidence
that pending seasonal improvement in
steel demand viii net come up to recent
expectations is causing more talk of re-
vision OF wages of plant workers. As
soon as the Steel Corporation takes such
action others will follow and the auto
mobile makers probably will follow the
same course. While automobile labor
has been cut by reason of lesser hours
OF work, the manufacturers cannot 20
ahead on truly debated basis until
basic labor cost Is adjusted.
E. F. Hutton e. Co.-TNyo items If
overnight news are apt to have an effect
on the market today. There is increas-
ing talk OF debt revision, and some
observers are disposed TO feel that this
matter is more possible than generally
supposed, due to the fact that French
and Belgian bankers affixed their sig
natures to the Wiggin report. Condi-
tons in England are approaching a
climax. and it looks as though any &C
ton taken will have the effect of
building up revenues to meet expenses
instead Of cutting down expenses to
meet revenues Such a solution will do
the least possible toward aiding mat
ters in England and will not be likely
to affect US tavorably. Government ex-
travagance is not confined to England,
and in this country there are many who
are apprehensive over the same prob
lem.
Jackson Bros. Boesel e. Cove
would expect to see silver rise sharply
even before staple commodities show
improvement. Germany bought 2,000,-
600 ounces of silver in the New York
market last week The world produc-
ton figures on silver for the first six
months of the year are decisively
bullish, showing a falling off of 81
$4,000 ounces. or POI per cent, COM
pared with the corresponding period of
1880
Paine, Weber & Co.-Believe a selec-
tive trading market will be seen for
some time, with oils, merchandising
stocks and few specialtieS scoring
some advances Meanwhile the market
is suffering from need of constructive
sponsorship among the big stocks. Is
sues OF the type Of United States Steel,
American Can, General Motors. General
Electric and Union Carbide are likely
to be supplied freely on minor tempo
rary upturns.
Redmond & Co.-The bond market
has been declining almost daily to new
lows The answer to this is probably
TO be found in certain banking Situa-
tons and when they are cleared up 1t
will be logical TO expect the bond mar
ket to conform to precedent by turning
upward. At any rate, until the bond
market does show more strength, 1t
seems only prudent to be conservative
IN making long commitments in stock.
except with the idea OF taking quick
profits on trading rallies.