Evening star., 1932-03-13
STOCKS MARK TIME
AS TRADERS AWAIT
SPRING TRADE GAIN
Market Has Acted Well Dur
ing Week in Face of Divi-
dend Changes.
COMMODITY PRICES FAIL
TO SHOW GENERAL GAIN
Increases in Bank Deposits and
Gold Stocks Strengthen U. s.
Credit Situation.
BY CHARLES #. SPEARE.
Special Dispatch to The Star

HiaIkeI eAnipItS the 1ndeciSion of spec
ulators and investors ever the future
effect on prices of Stagnant business
and probable dividend changes. Con-
siderable resistance has been met with
this week: Failure to penetrate the
carrier hlgh level Of the year has had a
Dearlsh Interpretation. On the whole
| however, stocks have shown less con
| Germ over unfavorable DEVELOPMENTS
than might have been expected. While
there is no public interest being shown
on the buying side, there is equal in
difference to movements suggesting an
| other reaction. Liquidation on the part
OF individuals and institutions appears
! to have run its course. It is quite sig
| niflcant that. in most cases the an
nouncement Of dividends passed or re-
duced causes little unsettlement in
stocks affected. In numerous instances
1t has been followed by an advance
in prices.
Dividend Changes.
Dividend changes this week have
been small in number, but important
In character. The shrinkage in the
earnings of the communication COM
panies has caused the Western Union
Co. to make a second cut in its rate.
This Is now one-half the payment in
1881. The International Telephone z,
telegraph Co. has entirely abandoned
profit sharing with stockholders. Its
income has been cut into by the ex-
change conditions in foreign countries
In which considerable portion of its
earnings originate. This currency sit
uation Is also given as the main reason
Tor the passing of the dividends on
American & Foreign Power preferred
stocks, though, in both instances. the
policy OF the two managements three
and four years ago of buying up prop
critics IN foreign countries subject to
violent political and economic up-
neavals and imposing a heavy load of
debt on them may have been as much
OF contributing factor as any other.
we are now getting from many direc-
tions tne packWaSh OF speculative ad-
ventures promoted In the boom period
py men and corporations whose securi-
ses previously mad enjoyed a high
creole standing among investors. The
astonishing developments in the proa,n
OF so-called insult issues Is a case in
point. '"''e III
Other important dividend changes
this week were those Of the ContinentaI
Illinois Bank Of Chicago, whose rate
was reduced from 81 to So a share !:
the Manhattan Co. of New York. which
halved its rate; the Gold Dust CorDo-
ration. National Steel, Niles-Bement-
Pond, International Carriers. Central
Public Service and Interstate Depart
ment Stores. It is estimated that the
dividend changes of the past year rep-
resent shrinkage in American in
comes comes at an annual rate of $780,
Buyers Slow to Act.
The approach Of the Spring season
brings little evidence of an overflow
OF the confidence in securities into the
Ilelo OF industry. In fact, the demands
OF buyers are being delayed longer than
normal. The contrast in the iron and
steel trade with one and two wears
ago Is striking. Production now is 27
per cent Of capacity, or half that in
early March, 1881, and compares with
oet"een 70 and 80 per cent in the
same month of 1880. The untitled ton
mage OF the United States Steel Corpo-
ratlon on March was AZ per cent
iess than In March, 1880, and so per
cent cent smaller than In the Spring of
lSZZ. when business was Just begin
panic.
Electric power output for the en-
tire country shows a reduction of 8.7
per cent, with the losses In the indus
GIiaI sections steadily becoming greater.
Inere mas been some improvement in
car loaolngs recently. owing to the
cold weather. In spite of the heavy
uecreaSe IN each year since 1929 the
total loadingS for the March quarter
VIII De well below those in the SIM
liar PERIOD OF 1881. This reflects the
ssagnation in the heavy industries and
tne Shrnkage in the volumes of whole
sale and retail trade.
"A rev commodities have strength
neu, witn a notable advance this week
IN packing house products. Grain and
cotton nave also been steadier. More
resEtance mas been indicated in metals
ana rubber, but sugar has fallen to
new low. The inability of connnooGo
tiles TO sympathize with sec1lrities is
que, IN part, to the different technical
conoltons surrounding these two
groupS as well as to the attitude of
banking In terests toward them
whereas there has been a driving IN
OF new issues of securities in the past
two and one-half years. until TODAY
the markets for them are quite bare
OF supplies the output of those com
modlties now selling much under the
cost OF production has not been ad-
1usted to world stocks or to the re-
strlcted consuming ability of peoples
!lvlng IN period of depression. So
far, the reluctant loosening up of
banking credit has been in favor of
securities rather than of Commodities,
ms TACT explains the frequency of
the complaints to Washington that
banks are not doing their part in
bringing about business recovery.
Monetary Situation Improves.
If it were not that fundamental con-
d1tlons here and abroad were steadily
gaining in force, one might be con-
cerned over the outlook, However.
there is distinct change in sentiment
even where this is not influenced by
the daily stock and bond Quotations
While commercial failures have been
increasing this month, those of banks
are small in number. The decrease
in country bank deposits. which con-
tinued from October into February to
an alarming extent has been checked.
Some increases are being reported.
Currency Is coming back into the banks
slowly, but in sufficient amounts each
week to permit institutions to reduce
their borrowings. The monetary gold
stock OF the country rose this week
Tor the Qrst time since the end of
December. This signifies that the out
now OF the yellow metal, which COM
pelied cnsnge IN the banking act, is
ending
An event abroad, which supplements
the constructive Developments here,