The Waterbury Democrat., 1932-07-26
Political Leaders as We'll Wait Anxiously Now for Report of Steel Divid- ends-Entire Market on Monday Took Part in Pleasing Rise
REPORTS OF ALL
 BUSINESS CLASSES
By the United Press)

Financial and political leaders. thrilled by the most sustained '.boom" market on Wall street since last october, looked forward to-day to the United States Steel Corpora tion's action on its preferred stock dividend which never has been omitted.
 Decision of the directors on the dividend was to be announced af- ter the close of the stock market. Hope, lunches, or secret know ledge that the dividend would be paid led yesterday to higher prices on both common and preferred steel stock. Omission of the divi- dend would indicate the worlds largest industrial corporation ex- poets no early business upturn.
 The entire market participated in Mondays. rise or rally. Many pre- ferred stocks, considered safer as investments, rose 3 to points. Common stocks were fractions to 3 points higher. There were few declines. Banks stocks gained as much as 40 points in the case of First National whose bid price was $1,OOO.
 This rise was the most sensation a: since the present advance start ed on July 9, a Saturday. The mar: ket on July had touched low for the year. Yesterdays prices were about 25 per cent higher, the highest gain on per centage basis since the October 5-November 9 rise of about 30 per cent.
 Other rallies since last Octo- Der included that after the Glass; Steagall bill was proposed last February, 20 per cent; the rally af- ter formation of the Reconstruction Finance Corporation in January amounting to 24 per cent; 15 per cent rally in December. The mora torium year ago brought tenn porary 50 per cent rise.
 After each rally there was re- action that dropped prices on many stocks even lower than they had been.
 One who seeks reasons for the recent sustained rise may find many events which may fill his needs. They include:
 Increases in commodity prices, which in comparison with recent lows may be termed sensational. The increase includes chiefly the prices paid for country's agricul- tural products, the foundation of the. farmers prosperity. which in turn Is believed to be the basis of national prosperity.
 Scattered, but numerous reports from all over the country of fac- tories resuming operations, or speeding up a bit after long lay offs, or operation with skeleton crews. Some of these doubtless fol- low summer inventories" when many plants take advantage of slack business to complete what they are pleased to call inventor ies".
 Reports that the Reconstruction X Finance Corporation Is functioning more effectively.
 Indications of more liberal issues of currency, the result of the Glass Borah act which permits National banks to issue notes with govern nent bonds, instead of gold as se- curity.
 The approved railroad merger plans calling for consolidation of most eastern roads into four lines, eliminating much duplication of costs, but also eliminating many workmen, which would result later in an adverse reaction.
 Ease with which government s loans, either in bonds or short term notes, have been f1oated within re- cent weeks. refuting the theory advanced by some that "refation' z policies would result in Hack of confidence" in all securities.
 Even such a small item as a stock exchange seat sale was look ed upon as favorable sign by one financial writer; yesterday a seat sold for $90,O00. which Is $10.000 above the last sale. but about one fifth the price paid during the great bull market.
 As for the United States Steel di- vidend, it probably will be paid out of the huge surplus of the corpora tion if not ordered omitted. The common stock is now on a non-di- vidend basis. And the second quar- ter report to be issued to-day prob- ably will be the most unfavorable ever issued by the corporation.
 Practically every other large cor poration has issued reports this year just as unfavorably, compara-