Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-12-05
Special Dispatch TO The star.

NEW YORK, December 5.-The rail-
road situation and the various delays
and hesitations of the Interstate Gem
merce Commission in connection there
With are not new, but the placing Of
the Wabash in the hands of receivers
affords striking evidence that the rail-
roads of the country are in urgent
need OF assistance and, as things 60
fnoW, this can only come from a re-
auction In wages, aside from the
| benefit the companies will receive from
| increased freight rates already allowed,
says the weekly market letter Of Henry
| Clews & Co. In addition to this
another matter which has again come
to the front as a disturbing market
| factor is the uncertainty attendant
upon the settlement of the reparations
| controversy. the letter says. With re-
| gard to this, French statesmen cannot,
even if they would, make concessions
Of vital nature without at least show
Of opposing them, otherwise they would
have terms OF Office even shorter than
| Is actually the case. 1t will take
good while to work out Of the situation
brought on by the collapse of Ger
many and the financial troubles that
have arisen out of this condition of
| things. It is not true that any new,
or different, outlook has been produced
within recent times. The trading pub
| lie, however. has become so used to
| looking on the dull or gloomy side of
| things that it now habitually makes
! the most of depressing factors and ap-
parently is disinclined to fight against
! them. To this psychological attitude
must be ascribed many of the tenden-
cies to market reaction that are cur
rently observable. With a market as
| i11IB hoe hn in
a few issues within the recent past,
factors that legitimately tend to put
| stocks down somewhat have had eff
| fects perhaps greater than they were
| naturally entitled to exert. Still Ii
cannot be denied that the present sit
uation is very trying one and holders
| of securities, dependent upon interest
/ and dividends derived therefrom, can
hardly be blamed for displaying great
| anxiety.
Business Prospects.
It is now pretty definitely conceded
that there will be no very constructive
| changes in trade and business prospects
generally until after the turn of the
year. The seasonal upturn in some
| lines of business, such as automobiles,
| has been carried forward to December,
| by one means or another, so that the
last month of the year may have rather
better industrial consequences than
some had expected, but new business
| itself is likely to meet with reviving
tendencies only after the new year has
set in. Winter is always preparatory
! period; and, while the indications of
| better business may show themselves
| toward the close of January, 1t will be
some time after that date before real
assurance of the prospects will be avail
| able. AS things stand, therefore, &C
| tual industrial or trade news designed
| to better the position of stocks will not
me Immediately Forthcoming. Agricul-
| turally, of course, 1t will be consider
| ably later even than the date thus indi-
Gated, before there is anything positively
new in connection with commodity val
ues in that field. The most important
market influences of the early future
will be found in the forthcoming deci-
sion of the Interstate Commerce Com
| mission, with respect to the pooling of
| railroad earnings from proposed in
creased freight rates and the willingness
! OF rail employees to accept reduced
wages. However, legislative and politi-
cal matters will also have to be given
| some consideration. Among these may
| be expected to be the taxation and
| fiscal plans Of the Government and the
outlook for new banking legislation as
! well as the tendency toward action de-
| signed to interfere with the general lev
| els OF commodity prices as, for instance,
| through the renewal of Farm Board
| activity. Fortunately, on all these
points, the indications are favorable.
! Conservatism In tax plans and in bank
| ing measures as well as indisposition
to go further in the support of efforts of
Farm Board enthusiasts to peg prices
/ ytyin yN1o {pa1y he ft,a 1rI1 r@F
A New Session of Congress.
A new session of Congress will open
| with the coming week, and there will
| be abundant opportunity for clarifca-
| ton OF many conditions that have hith-
erto been obscure. The first subject
thus to be dealt with will be the repa-
rations problem and with it probably
| the question of the short-term debt
payable by Germany to American bank
ers At present there seems to be every
intention of clearing up the most i'm
mediate phase of the subject-the rati-
fication of President Hoover's mora
torium-before December Is, or within
| the first week or a little more Of the
new session. This ratification may be
| counted upon. What other elements In
| the case must be debated will depend
upon the turn of affairs that Is indi-
Gated by the French authorities. While
at present they seem determined to ask
in the conferences about to begin in
| Switzerland, for definite recognition of
| the priority Of long-term over short
term obligations, 1t will in fact be
| good while before there is any final or
| positive demonstration of their attitude
| That such a demonstration must be
made before Midwinter, when the Ger
man obligations mature, is, however,
recognized. Other factors Of congress
sional business may develop more slowly,
! and this includes taxation as we'll as
| banking action. There is reason to be-
lieve, however, that action on both these
subjects will be forwarded with the
minimum of delay. Congress is likely to
| be in a frame of mind which desires to
be helpful rather than to interfere with
and attempt undue regulation of bust
ness. This change Of front may largely
alter the ground for fears that have
been expressed with regard to the prob
able hazards of legislative action on
various subjects. There are thus many
| favorable factors In the sphere of poll
tics that have not been counted upon
in recent discussion.
Financial improvement.
1t Is a noteworthy fact that during
| the month or November there has been
such decided decline In the number
of bank failures and embarrassments,
as compared with october, the falling
off has been remarkable, and this is at
tributable in part to the favorable in
fluence Of the new National Credit Cor
poration. In part, however, it may
fairly be assigned to the fact that
| many weak spots have been eliminated,
and doubtful or failing institutions alb
sorbed by others or placed in liquida-
ton. In any case, the financial side of
the outlook Is more favorable than
heretofore, and that is something gained
at least. Projects now on foot for the
| better protection of land credits and
the liquidation of mortgage loans
should, If brought successfully TO a