Evening star., 1932-11-06
Quiet Upward Trend of Week
Indicates No Fear OF
Result.
STOCKS RESIST SELLING
AS COMMODITIES SLUMP
Maintenance of Dividends by Lead,
ing Corporations Indicate Faith
in Future of Business.
BY CHARLES F. SPEARE.

NEW YORK. November 5-The out
wardly calm manner with which the in
vesting public has watched the ap-
proach of election day suggests that its
composite opinion of the effect Of the
vote is that most admirably expressed
in the statement of Owen D. Young on
Thursday that he was mot afraid of
mobs if Mr.. Hoover is elected and not
afraid of markets or business If Mr..
Roosevelt is elected
III the investor were to be disturbed
by the prospect Of change in the ad-
minlstration of our Government, he
would have indicated this after reading
the speeches of candidates in the last
weeks of the campaign Obviously, he
has turned from these to a consider
alton OF the actual facts of improve
ment in the position of security markets
and in the world of business. He has
used his common sense and acquaint-
ance with historical precedent and bal
anced these against threats and prom
ises known to be employed primarily
for political effect
1t is not improbable that there will
be some hesitation in industry after the
election. There may be some liquida-
eAOI4 ~ ltdLoJIlle OIL STOCKS ana
bonds. But that there will be anything
like return to the unsettled conditions
OF last Spring Is not conceivable
Trade Marking Time
Trade authorities state that there is
a quietness in business that reflects un-
Willingness ID make commitments until
the presidential campaign is finished.
This has been true of other years when
the outcome of the national election
has had relatively little interest for the
PUBLIC at large. 1t is quite likely that
this slowing down is as much due to a
temporary replacement of exhausted
supplies of goods and to the continued
fail IN commodities as to a caution born
OF political issues.
Inc disturbing effect of a steady de-
cline IN wheat prices and in live stock,
the latter having been given as the
reason for an outbreak of banking
troubles in Nevada this week. might
readily have led to renewed LIQUIDATION
OF securities had there been many weak
accounts outstanding or had not the
prevailing sentiment been one Of salts
faction in the present market values of
potn investment and speculative issues.
1t is only another evidence of the
Iqu!dated condition of the stock market
that it has met the reaction in com
modlties, now back to about the aver
age level Of last July, without alarm and
has this week steadily resisted profess
slonal attempts to force prices below
the minimum OF last month 1t is also
important to note that on the eve of
the election, the prevailing trend for
both stocks and bonds has been upward
rather than downward
Resisting Power Shown.
The disposition of securities to ignore
events that formerly would have been
cause for deep unsettlement among
them had previously been shown when
wheat was dropping to historically low
prices and sterling exchange. in its alb
rupt slump last month, unsettled the
MINDS OF bankers in this country and
In Europe. This week similar indiffer-
ence has been exhibited in the face of
the sudden announcement that a re-
celVer has been appointed for the ST.
Louls-San Francisco Railway This is
the largest transportation system to
confess insolvency since the depression
began. In fact. in the extent of its
mileage and the geographical area
covered. it is the most serious failure of
its kind in a decade. 1t has proven
that neither the Reconstruction Finance
Corporation nor the Railroad Credit
Corporation can save properties that
are financially unsound
The implications from this were that
other weakly constituted carriers might
also be compelled to adjust their capi-
tai structures through the medium of
the courts. Yet the Frisco receiver
ship had no terrifying effect on Wall
Street and has been followed by COM
paratively small decline in the securi-
ties OF roads known to be short of cash
and whose arrangements are deeply
concerned over approaching maturities.
Stability of Dividends.
Early in the week there was the same
uncertainty over the policy of directors
Of the General Motors Corporation to-
ward their common stock dividend as
had existed before regarding the divi-
dend on United States Steel preferred
The regular rate was declared in spite
OF the fact that it had not been earned
by large margin. Howeve-, the Gen
eral Motors Corporation has in its pos
session S209. 100000 of cash and Gov
eminent securities. or an amount con-
siderably in excess of the par value of
its preferred stock. Dividends at the
accustomed rate were also declared by
both the Standard Oil Co. of New Jer-
sey and Standard Oil of California, as
| well as on the stock Of Drug, Inc. A
| lower rate was established on the
shares of the Socony-Vacuum Co. which
represents the combination of a year
ago of Standard Oil Of New York and
the Vacuum Oil Co.
Further proof that dividends are ap-
, preaching the point of stabilization is
given in the October record of "a rates
reduced compared with 76 in October,
1881, and 81 passed as against the
omission of lib dividends in the same
month year ago. This decreasing
trend toward smaller disbursements of
, corporation profits is emphasized when
contrasting the October statistics with
those for the first 10 months of 1882
Then dividends reduced and passed
numbered 2513 and were 35 per cent
greater than for the same period of
1881.
fNopvriobt 1Qeol