Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-09
BOARDING OF CASH
is LESS EXTENSIVE
Burst of Strength in Markets
Laid to Loosening of
Purse Strings.
BY CHARLES w. STORM,

Editor the News Service OF Wall Street.
Special Dispatch to The Star
NEW YORK, November "a definite
let-up in the boarding of money as
well as better feeling in banking cir
Giles with regard to the French and Ger
man situations, was the reason for the
burst of strength which appeared III
the market for stocks and bonds the
last week.
Much of the revival in confidence in
the stock market is also attributed to
the sharp rise which has occurred in
the prices of wheat and cotton since
higher prices for these commodities
mean material increase in the pur-
chasing power of the farming COM
munities. Experts estimate that the
enhancement in the quoted market
values of grain and cotton on the
present movement equal an expansion
of upward of half a billion dollars in
the buying power of the farmer and
planter.
Confidence Replaces Fear.
Confidence is steadily replacing fear
as may be cleaned from the fact that
the average price OF 80 industrial stocks
has advanced from low of 86.48 re-
corded on October last to high OF
slightly more than lis registered at
the close of last week. This advance
is also wildly REFLECTED in the reduced
Weld obtainable on cash-dividend pay
ing stocks.
According to Moody's Investors Serv-
ice the average yield on 318 active cash.
dividend paying common stocks listed
on the Stock Exchange AMOUNTED to
9.72 per cent on November 2, which
n bn
end of September and 1904 per cent
at the recent low point of the market
on October 5.
The advance in the general stock
market has been so marked that some
of the important operators are now SELL
ing stocks short because of a belief that
the rise has been too rapid and that
the market will have a substantial re-
action even If it is in a definite major
upward movement.
Business Outlook Better.
Improvement in the securities markets
and the betterment in the prices of
commodities have enhanced the pros
poets of a vigorous upturn in business
early next year. Betterment in the
operations of the steel plants is already
reported and further expansion in that
industry is expected this week, accord
ing to steel experts.
Much of the hope for further i'm
provement in the steel industry is
founded on the belief that considerable
expansion may be looked for in the
motor industry, which is on the point
of bringing out new models. Expansion
in the motor industry is also calcu-
lated to have most stimulating effect
on business in general.
Oil Industry Better.
Another gratifying development Is the
in the oil industry. Prom
inent officials in some of the biggest
oil companies say that present condi-
tionS are now better than they have
been for more than seven years and are
expecting higher prices for crude oil
and gasoline.
General realization of the material
change for the better in the oil industry
began to find reflection in higher prices
for the oil stocks late last week. Most
of the oil shares have been thoroughly
debated, according to important people
in the industry, and speculation in
stocks this week is expected to be