Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-09
BY JAMES B. CLEWs.

! Special Dispatch to The Star.
NEW YORK, May s.-The market as
whole continues to be a vacillating
affair without making much Roadway
or losing much ground. On the one
hand, people who are ordinarily inter-
ested in securities are not disposed to
make new commitments for the time
being until something more definite is
known regarding the trade situation.
On the other hand, the general run of
stocks have been so thoroughly liqui-
dated there is no pressure to sell except
, that coming from the bear element who,
Of course, are always on the alert look
ing for weak spots, and whNl unearthed
making the most of their opportunities.
Nor is there anything at the moment to
change this complexion of affairs, as
| the powers that be, having acquired
practically all the floating supply OF
stocks, have adopted waiting attitude,
| which they can we'll afford to maintain
until business again becomes normal.
| With respect to this it can be said that
in certain branches of trade bright spots
are already appearing.
Measuring opinions.
In view Of present conditions 1t is
natural that business and political lead
ers have been reviewing the outlook
and uttering their opinions with regard
to it, The Secretary Of the Treasury,
in a widely published address, while
not minimizing the present state of
affairs, foreshadows improvement from
the present depression of business at no
very distant date. The difficulties &C
cording to him, are those of transition
from the temporary conditions estab-
lished after the war to the older and
more permanent basis Of trade. AS the
Secretary rightly says mo one should
be discouraged about the ultimate OUT
come" Other expressions of somewhat
similar character have been furnished
during the course of the week, and
several business leaders who have been
asking for more or less drastic changes
in legislation, including tariff revision,
have altered their attitude and are now
| making 1t plain that they do not believe
! in the extreme form Of the views which
had been attributed to them. Taken
as whole, these expressions have tend
ed to reflect far greater conservatism
Of utterance than had been expected.
Trend Of Business.
The rather encouraging views thus
offered to the public have been paral-
leled by the continuation of the better
prospects in actual business which had
made themselves felt heretofore. A de-
cisive advance has taken place In the
output of the shoe industry, for ex-
ample, an increase of about IS per
cent over last DEFENDERS low point
having been reported. The cotton tex
tile trade continues active and appar-
emily is getting back to a condition more
he
war, while reports from the automobile
manufacturing districts are even more
hopeful than was true at the opening
of April. Indeed, many important lines
of business are described in bank analy-
ses as enjoying gains; building con-
strIction is cited as a leader, although
others that are less marked in their
advance are also mentioned. This Is
further emphasized in the monthly sur
veys of the Interior Federal Reserve
Banks, for the opening Of May report
ing moderate improvement in their sew
eral districts, there being decided
gain in wholesaling and jobbing lines
over the preceding month, accompanied
by a slight advance in commercial loans
indicating an increase in the demand
for funds to be used in business develop
ment. In the midwest. the condition OF
business is decidedly better than earlier
! in the year in a considerable number
of representative lines, although not as
good as was the case at the correspond
ing period of 1880. Boiled down as a
whole these reviews are quite hopeful.
Commodity Stocks Problem.
It is being more and more felt that
the continuation Of overhang1ng stocks
Of commodities on a high level Is one
of the most serious problems Of the
situation. The tendency OF copper 10
accumulate further has caused an adj
ditional slight recession in the price OF
the metal with some sales as low as
cents during the past week. Increase
in the production of oil here and there
is taken as an indication OF slackenlng
In the degree of control exerted by the
companies through their conservation
policy, and naturally is disappointing to
those who have been hoping for better
results. There has been no real prog
ress in the attempt to unload the ex-
cess stock of wheat held by the Farm
Board, although that organization has
lately begun paying actual cash for the
wheat which It had previously pur-
chased on future contracts, and Is now
engaged in taking title to 1t. Enlarged
shipments to Europe are now imminent,
the board being apparently determined
to follow policy Of selling out at the
market price, rather than waiting for
any improvement in quotation. The
idea of storage and continuous holding
seems to meet with less and less ap-
proval; indeed, there is disposition in
most trades to feel that the best way
out of present difficulties will be actu-
ally to induce consumers to take the
goods off the market at some price that
would actually lead to the absorption of
products and permit fresh start to be
made without the handicap OF large
overstocks or inventories which still
exist. It is worth nothing, however, that
notwithstanding the difficulties that are
felt as a result of this continued
existence Of oversupply, the average
level of commodity prices shown by
commercial indexes during the past
week, was for the first time this year
stable as compared with the preceding
weekly period. Difficulties growing out
of commodity overproduction are still
severe and likely to continue so for
some time, but the worst effects are
apparently largely thing of the past.
View Of World Future.
The meetings Of the International
Chamber of Commerce in Washington
have afforded an interesting and wholly
hopeful view of the general world
future. According to opinions expressed
there, decided progress Is being noted
in practically all countries with respect
to the trade outlook. There Is an evil
dent feeling that better control will be
exerted next year over production and
trade, although 1t Is widely admitted
that definite action looking to the
improvement OF conditions will be
necessary If immediate advance is to
take place. The mapping out of def
mite programs Of policy at these meet
I 1ngs gives promise that there will be
greater degree OF uniformity of ac-
ton than has been possible at any time
in the past, and consequently holds out
hopeful view for the future in that
respect. Particularly does this appear