Evening star., 1932-01-12
MARKET DISCOUNTS
CREDIT AID PLANS
Wall Street Awaiting Result
of Congress Vote and
Wage ParIey.
BY CHARLES w. STORM.
The News Service OF Wall Street.


Special Dispatch to The Star.
NEW YORK, January l2.-The gen.
eral stock market is discounting and
will continue to anticipate the creation
of the Reconstruction Finance Cor
poration and announcement of an ac-
ceptance of a reduction in wages by
railroad labor Since both of these
developments would be favorable in
fiuences on the prices of railroad Sc
curities, that group was Yesterday most
prominent for its strength. the average
price of transportation shares closing
shade better than two points over
Saturdays final
Coincident with the pronounced
strength in the rails there we're reports
of aggressive buying of those issues by
some Of the biggest banking houses.
Second-grade and convertible railroad
bonds also felt the stimulus of good
buying and in some instances showed
sharp advances.
Steel Dividend Policy.
United States eel Corporation di-
rectorS are scheduled to take action on
the common dividend January 26, but
it is understood that the Finance Com
mittee of the corporation will meet
today and decide upon what course to
adopt with regard to the next dividend
disbursement The Street will, there
fore, begin watching the market action
of Steel common, strength of which
would be accepted as an indication of
a favorable announcement and heavi-
ness of an unfavorable one.
The tone of the steel news has been
better. Weekly reviews reported an in
crease in operations for the last week
and some of the steel companies are
understood to have made up budgets
based on an average operation OF 40
to As per cent of capacity this year.
This would seem to indicate expecta-
ton of marked improvement in the in
dustry in 1882.
Copper Price Advanced.
AS predicted recently, producers of
copper have advanced the price of the
red metal to 7la cents. Expectation in
the industry is that the price will
gradually work up to Sl2 cents per
pound. Prices of copper were also
marked up by wire manufacturers.
Copper stocks showed firm under
tone by reason of the price advances
from the betterment in sentiment and
increased foreign purchases following
the decision Of producers all over the
world to curtai production.
Railroads Strong.
Distinct strength in railroad stocks
and bonds featured yesterdays dealings.
Be5terment was particularly noticeable
in New York, New Haven & Hartford
stock, which rose nearly points, and
buying was reported for the account OF
two of the largest banking houses.
Railroad executives and represent
atives of railroad labor are scheduled TO
meet on Thursday and the Street feelS
confident that the result will be favor
able. The buying of rails was In antlcl-
patton of such a result.
Since many of the railroad shares
which were formerly regarded as good
investment securities are considered to
be undervalued at current prices, re-
duction in wages would probably have
a most stimulating effect on those
issues.
Larger Profits.
While it is generally conceded that
reports of earnings by industrial cor
pora tions for the fourth quarter OF last
year will make poor showing, opinion
is growing that the statements for the
first quarter of this year will make more
favorable reading because they are ex-
pected to reflect the drastic reductlon
in operating costs by the large indus
trial units
Belief is that even If these corpo-
rations do only as much business as
| they did the last three months period
| they will be able to make better snow
| ing in earnings applicable to dividends
on their common shares.
| (Ccpyright 1892, by the North American
| Newspaper Alliance, Inc.)