Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-28
Appreciation in Securities
Has Reached BiIIionS-Av-
erage Rise 20 Points.
MOMENTUM OF ADVANCE
HAS SURPRISED TRADERS
Increase in Commodity Values Has
Been Important Factor
in Recovery.
BY CHARLES F. SPEARE.

BY CHARLES r. SPEAhE.
Special Dispatch to The Star.
NEW YORK, June 27.-This has been
the most buoyant week in securities and
in commodities since September, 1929.
1t has witnessed sensational change
in business psychology. 1t is not too
much to say that the end of the bear
market in stocks will date from It,
This does not mean the beginning Of
a prolonged or pronounced bull market.
It was not in the minds of President
Hoover and his advisers to effect a sud
den industrial revival or a boom in Sc
curities from the one-year moratorium
on European debts to the United States.
What they were most interested in was
to check the destruction of credit and
of capital that was taking place in Ger
many as an aftermath of the collapse
in Austria. In this they have succeeded
and arc entitled to unreServed praise for
their craftsmanship.
Markets for securities are the most
sensitive barometers of change in indus
try and in politics. Therefore, it is
altogether normal that there should
have been an immediate and extensive
advance in common stocks and in for
eign dollar bonds following the first an
nouncement a week ago that this Gov
eminent was inQuiring how it could best
go about assisting Germany in her
crisis. When the plan later took the
concrete form of a proposal for a one
year moratorium and was agreed to by
all parties in interest except France.
Wall Street realized that an event of
great consequence to this country and
to Europe had taken place and at once
began to express its satisfaction through
the purchase Of securities. It was some
what later before the country at large
sensed the significance and the scope
of the proposal and its bearing on a
market and on a commodity situation
that already had given evidences of
being thoroughly liquidated.
Rise Runs Into Millions.
Any estimate CT the appreciation in
values of securities and of commodities
in world markets-for not only New
York, but London, Paris, Berlin and
Toxic have had great demonstra lions
this week-growing cut Of the political
and financial changes in the world sit
uation, would appear extravagant. The
total runs into billions of dollars. Since
Friday, June 10, for instance, the ave-
rage of so active stocks has advanced
about 20 points. During May the mar
ket values of all of the shares listed
en- the New York Stock Exchange de-
creased $4,000 ,000, 900. This came from
decline in the average price of the
1924 issues selected of less than )
points. 1t is apparent, therefore, that
even more than the depreciation IN
May has been equaliZed by the appre-
citation in the latter part of June.
1t is not improbable that the New
York Stock Exchange average of 1888
for all shares listed on June /, ccln-
pared with 1913 on September /, 1929,
may be the low of the bear market and
that the depreciation in values between
the two dates, amounting to over SAT-
900, 100000 may represent the full ad-
juStment Of a stock market to a period
of deflation which is also expressed in
the decline of S., 100000, 900, or ebout
80 per cent, in brokers loans.
Public Regains Confidence.
1t has been held for some time that
the sterilization of securities, followed
by a small advance, would do more to
change the public mood toward business
than any ether one factor, owing to the
American ownership of
them If this is true, the recent 20 per
cent rise in stocks ought to produce a
different attitude among the
millions of Americans whose wages and
whose income from services or from in
yestments have been sharply curtailed in
the last 18 months. There are still a
few people who take the view that the
American public should not be addi-
tionally taxed in order to relieve Eu-
ropean debtors. The amount committed
for one year is $246, 900, 900. Should it
be necessary to impose additional taxes
to cover an amount ordinarily used to
reduce the public debt, the per capita
charge would be slight.
On the other hand, by giving up
$246 900 900 in debt payments, the value
of securities in one week has appreci-
ated Is times that amount. In three
days the market worth of American
Telephone g. Telegraph stock, which is
held by nearly 100000 investors the
world over, gained the equivalent of the
debt remittance. There are a whole lot
of people who would like to give up
dollar and recover their peace of mind
after going through long nightmare,
to say nothing of the gain of $25 for
every dollar subscribed to good cause
The recovery in commodities has not
been so great this week as that in Sc
curities, though ranging from 10 to 20
per cent. 1t has, however, been enough
to change the point of view toward the
future of those who are more influenced
by movements in grain, metals, cotton,
silver, wool, rubber and sugar than by
the ups and downs of stocks and bonds.
Copyright, 1880.