Evening star., 1932-02-05
Brokers' Comment

NEW YORK, February Stock
market comment was indefinite In
brokerage house adViceS to clients to-
day. Several referred to President
Hoovers drive against boarding.
jackson. Bros, Boesel g. Co.-There
is now under way under administration
guidance in Washington Natlon-Wlde
campaign to utilize the leading civic
organizations of the country to restore
public confidence. At no time since
the stock market first started to crash,
in 1929, has a campaign of this kind
been attempted on so gigantic scale.
The immediate objective, of course, Is
to stop the boarding of currency and
gold and to divert hidden funds into
normal business channels. 1t seems to
us that the stock market cannot con-
tinue to ignore this development in
| definitely. and it is also logical to as
| sumo that the powers behind this move
ment will see the wisdom of utilizing
/ rising prices in the security markets as
q part of their we'll designed plan Of
| getting business out of a rut.
| Redmond & Co-PreSident Hoover's
! appeal for people to put boarded money
! to work either by conservative invest
ment or by deposit in sound institu-
| tionS" in order that it may return to
|
emily was without market influence.
| No intelligent person will dispute the
| Presidents conclusions regarding the
detrimental effects of currency hoard
! ing. but many doubt that much good
will be accomplished by his plea until
| bank failures cease and the confidence
of frightened depositors who have
withdrawn their funds, is restored This
is one of the main tasks of the Recon-
struction Finance Corporation, and the
high caliber Of its personnel holds out
considerable promise of its ultimate
| success.
| Thomson & McKinnon-The CO.
| operation and public support which
President Hoover is being accorded on
his drive against boarding should also
contribute to an early reversal in the
flow Of money. 1t is rather difficult to
come to satisfactory conclusion as to
the meaning Of the markets virtual
halt. In our opinion, it will become
responsive as results of the Reconstruc-
ton Finance Corporation become more
visible.
Shields & Co.-While the trend to
lower wages and less employment con-
tinueS there can be little concrete effect
from verbal effort to restore confidence
! WltnOuJ powerful new Stlmulant 1t
will be difficult to change the market
from the difficult, narrow trading affair
it has been for the last few sessions.
E. F. Hutton 81 Cove would not
get too bearish, for pessimism is too
widespread to be Unfortunately fol-
lowed.
Baar, Cohen & Co.-The principal
thing to remember is that the only
worthwhile selling at this time is that
of diSgusted holders, who believe they
can sell stocks here and buy them back
cheaper 1t is usually out of such a
situation that an upsWing develops
and chances now are more favorable
for an up rather than downswing.
Paine, Webber & Co.-From strict
technical standpoint, industrials could
remain in present narrow trading area
few days longer before giving posi-
tive evidence as to which direction
they will follow when they break out
Of the so-called coil formation into
which they have been working since
establishment of lows on January S
There is other evidence pointing to a
good possibility that old support levels
will soon give way to renewal o
downtrend.