Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-01
Everybody's
Business
Reviewed Liquidation on
the Part of Eurobeans Is
Believed Partly Resbons-
'b1e for Recent Declines
IN the Stock Market.
BY DR.. MAX WINKLER.

Special Dispatch to The Star
NEW YORK, October 1.-The con-
tinuance Of selling of securities Is as
cribed, to some extent, to renewed
liquidation for the account of Euro
peans. Considerable selling is also be-y
lieyed to have taken place for Cana
dian account. AT any rate, organiza-
tons with important European and
Canadian connections seem to be of
this opinion
Abandonment Of the gold standard
by number of countries led by Great
Britain, together with feeling of I'M
certainty concerning the future outlook
In the United States, appears to have
induced Europe to dispose of substan-
tlal portions OF its holdings for the pur-
pose OF converting the proceeds into
gold. This may account for the in
crease In the amount of earmarked
gold and the renewal of shipments of
the yellow metal to European centers.
Fear that the loss of gold is likely
to result in higher money rates was
held as groundless by no less an au-
thority than Albert H Wiggin, chair
man OF the Governing Board of the
Chase National Bank.
The registering of lower price levels,
the averages being some IS points
| down as compared with June figures.
fantastic prophecies. Among these are
featured the belief, entirely unfounded,
| OF course, that more countries will
abandon the gold standard. that foreign
| trade Is not likely to show any i'm
| provement, that wholesale defaults on
public and private debts will occur, and
that social disturbances are unavoid-
! able. Those familiar with stock mar
ket history know full well that all these
| ideas would disappear Immediately and
that the present hysteria would subside
as soon as stable rally develops. This
cannot be very far off.
Railroad Shares.
Railroad shares. which have once
more given a fairly good account Of
| themselves in the market, despite the
| general weakness, are believed TO dis
count pending favorable developments.
| These are understood to include, among
| others, the ironing out of difficulties
| between the New York Central and the
Pennsylvania in connection with the
consolidation OF the Eastern roads and
with respect to which an important an
nouncement may be made after the
conference to be held today.
Textile Industry.
| The textile industry in the United
States, one of the first to become en-
| gulied IN depression OF ltS own as lar
back as 1925. is today in better posi-
| ton to regain prosperity than almost
any other industry, according to LeaVelle
| McCampbelI, president of the Associa-
| ton of Cotton Textile Merchants.
Buy at present prices and hold or
regret the lost opportunity later, is Mr..
/ McCampbell's advice. He views very
otimistically the outlook for the indus
! try in the next two decades.
| Reciprocal Trade.
The delay in the revival Of reciprocal
trade, which is so essential to business
recovery throughout the world, is due
| in a large measure to Government-im-
posed restraints on business, according
| to T. j. Caldwell, vice president Of the
| Union National Bank Of Houston, Tex.
Mr. Caldwell is of the opinion that
the economic welfare of all nations
would be better served if governments
would eliminate, in so far as possible,
all unnecessary restraints and hard
ships on reciprocal trade He regards
the underlying causes of the present
crisis as governmental interference with
the full flow of commerce in the form
of protective tariffs, embargoes and sub
sides, all of which result in uneconomic
production, unsound capitalization and
credit imitation.
| Copyright. 1881 by the North American
| Newspaper Alliance, Incl