Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-18
TRADERS BECOMING.
MORE OPTIMISTIC
Upward Movement in Market
Considered Probable as
Trade Improves.
BY GEORGE T. HUGHES.

Special Dispatch to The Star.
NEW YORK, October 1.-THE feel
ing toward the stock market of the
active traders at the week end is def
nitely more favorable than it has been
in month or more. 1t is not simply
the expectation of some concrete move
from Washington to re-establish rail-
road credit, although that is an i'm
portant factor in the changed attitude,
but it is cumulative signs of business
improvement which have persuaded
the professional spectators, in whose
hands the market continues, that an
upward movement is logical.
1t is agreed that nothing would
bring more recruits to the conStruc-
tive side than an advance in the rail-
road shares. but it is insisted that such
advance might we'll come regardless
of the efforts of the administration,
helpful as they might be, If traffic
shows signs of an increase. The larger
car loadings reported this week. when
seasonally a falling off was due, are
deemed a straw in the wind. Similar
improvement next week would be con-
vincing, it was urged.
Steel Reviews Watched.
Fully as important would be an en-
couraging report from the steel trade
and for that reason the midweek
reviews are being closely scanned
Meanwhile. from both wholesale and
retail merchants word is flltering into
Wall Street of business revival. Con-
firmation of this view is to be had in the
week end trade reviews. one of them
putting it where weather conditions
have been favorable, October trade is
running ahead of the September record
and is also in excess of last year.
Against this background of domestic
improvement. foreign affairs have lost
their power to upset the stock market.
1t is, of course, probable that any major
crisis would undo the progress so far
effected, but there is less worry about
troubles, political or financial, else
where in the world than there has been
at any time since the Bank Of Eng
land suspended gold payments. This
is not to say that the road to recovery
is regarded as an easy one or that there
are no serious obstacles to any sustained
stock market advance. 1t IS merely to
put on record feeling Of optimism that
has long been lacking.
The stock market took the increase
in the rediscount rate of the New York
Federal Reserve Bank calmly 1t was
undisturbed by the weakness in United
States Government bonds. 1t viewed
with unconcern upward readiustment in
interest rates. The long-continued
policy Of the Federal Reserve authori-
ties in keeping money excessively easy
having failed in its object of strength
ening the bond market and helping
business, it is felt that there can be
nothing adverse In the change. The
assurances of the banking authorities
that the European drains on our golo
supply will not retard revival here are
accepted without question.
Even the prospect of fresh dividend
cuts and omissions Is not quite as ter.
rifying as it was. While in the nature
of the case there can be no official in.
formation, the Street is veering to the
view that the United States Steel Cor
Doration will continue the dividend or
the common stock at the 81 quarterly
rate established at the last meeting
AS for other impe-iled dividends. it Is
held that the market has already dis
counted the worst and trader are listen
ing to the argument that dividends CT
no dividends, earnings or no earnings
stocks have a certain asset value which
is not overestimated in current quota
tons.
Copyright, 1917