Evening star., 1932-10-30
STOCKS MARX TIME
AS TRADERS WATCH
CAMPA|GN
Turnover During Week Is
Small, With Price Changes
Very Narrow.
HOLDERS OF SECURITIES
SHOW NO UNEASINESS
Business of Nation Maintains Ex-
panding Tendency, but Prog
ress Has Been Slow.
BY CHARLES F. SPEARE.

Special Dispatch TO The Star.
NEW YORK. October 29-Absorbed
in the presidential campaign, with its
confusion of statistics and arguments
of financial and economic character.
is is not surprising that the business OF
Wall Street this week reached low
ebb or that the net change in the prices
of stocks was the smallest of the year.
1t is important. however. that on the
eve of what is generally regarded as the
most critical election of the century
there should be so little outward evi-
dence of uneasiness among holders of
securities. This seems to prove that
def1ation has been completed. that
stocks and bonds are not considered as
overvalued and that the likelihood of a
relapse in prices in the event of a
change in the administration, which so
many seem to fear is improbable.
Markets in Harmony.
Along with the time-marking phase
Of securities is a similar condition in
commodities and in industrial life.
There has been since the early part of
July remarkable harmony between the
fluctuations in stocks and in those of
grain. cotton and metals. The low
points Of the two groups synchronized
during the Summer and have subse-
quently reacted sympathetically. Just
as the stock n3arket'this week indicated
that it had reached a dead level so has
the commodity index, falling since the
first of September. apparently arrived
at point of stabiliZation. 1t is also
significant that, although wheat has
lust dropped to price not duplicated
in several hundred years, the effect of
this no longer provokeS unSettlement in
stocks
Again what may be termed the tech
nical quality of the stock market has
been severely tested this week by an
other collapse in sterling exchange.
which has been quoted within a few
points of the low figure of last Decem-
ber An incident of such moment in
finance would have pro-
duced extensive liquidation Of securi-
ties in all of the markets of the world
six months ago. Now it is accepted
with complacency, even though it is
realized that it suggests a weakness in
the credit and social position of Great
Britain that may seriously delay her
trade recovery. The world at large is
looking to the United States for eco
nomic and political leadership and,
temporarily, postponing commitments
until after the November election.
Excess Money Supply.
One result of this universal disincl-
nation to go ahead until the political
horizon clears is the accumulation of
idle funds in every money center 1t has
been possible this week in New York to
borrow money for 90 days at 34 Of
per cent. The call renewal figure of
per cent is as fictitious as the per
cent official rate that had prevailed
the greater part of the year.
Money on call ir London is l. of per
cent Even in those continental
countries that are, one by one. de-
faulting on their government loars,
there is trend downward in discount.
1t is now proposed to reduce the rate
of the Bank Of Germany to 81. per
cent. an extraordinary and unprece-
dented development in German bank
ing
There is an excess of reserves among
Federal Reserve Banks of about 20 per
cent. In spite of the fact that, in the
last four months, the members of this
system have increased their holdings of
Government securities by nearly ST.
100 900 900, they now have a surplus of
Thus We have a trinity of economic
paradoxes-wheat super abundant be-
low As cents a bushel. corn less than
25 cents a bushel and thousands of
underfed; Cotton at 6l2
cents pound and a glut on the mar
ket and thousands underclothed; money
at l per cent for six months and count
less home owners, business men and
farmers struggling to maintain their
equities and. most generally, unable to
borrow at 6 or per cent.
Gains in Employment.
There has. however. been an increase
in industrial employment. The survey
published at the end of this week by
the American Federation of Labor in
dicates that the unemployment total
was reduced from 11460.000 in Au
gust to 10.9000C0 in September. In
the first part of october further gain
was made in the numbers of those in
fa ctories. in the mines and on the farms
who are working full or part time. This
is not entirely a seasonal increase, al
though the labor organization is in
clined to treat it as such end estimates
that, BY January. there will be 13,OOO,-
900 American workers idle.
The evidence that comes from other
sources competent to judge the tides of
trade is that the momentum of the late
Summer months is being maintained
and that there is a decided degree Of
stability in general business. This is
confirmed by the smallest loss in cleo
trio output for the year; by car load
ing figures that have been rapidly ris-
ing during period when lily they
should fall; and by more favorable re-
turns from retail trade centers
1t is easy to belittle the rate of prog
reSs The fact is that business has been
rather than contracting in
the last 80 days.
Copyright. 1922