Evening star., 1932-11-13
Improvement in Domestic
Banking Also Factor in
10-Point Rise.
MOVE SHOWS ELECTION
RESULTS DISCOUNTED
Dividend Declarations Reveal Con-
fidence in Outlook in Trade
World.
BY CHARLES r. SPEARE.
sneriaI niSnateh IN The Star

CpSSAdl IlSbhLSH " AiS 0bnAs
NEW YORK. November H. The
manner in which the markets for Sc
curities reacted to the presidential
election this week was as much Of a
surprise to some as were the unprec-
edented pluralities credited to Gov.
Roosevelt.
The fact that both stocks and bonds
advanced sharply on the eve of the
election and following it. the former
now having had an average rise Of
nearly 10 points, confirms what had
been obvious to unp-ejudiced observers,
This was that securities had not only
discounted the election, but were re-
spending to a permanent improvement
in banking and in industrial conditions
and were protected against further seri-
Gus declines by the liquidated character
OF the market and the absence of weak
accounts in the hands of brokers and
in the portfolios Of the banks. 1t is
only necessary to refer to the present
items of brokers' loans and Of loans by
financial institutions on collateral to
verify this statement.
Opportunity for Action.
So long as the election controlled
the thoughts of the general public. as
well as the activities of all political
parties. there was neither disposition
nor opoortunitf tn move eheed along
new constructive lines. Latterly both
trade and market had reflected this
state of mind and had slumped back
into something of the lethargy of last
Summer.
About half of the advance in the
index of business since the middle of
July had been lost. Commodities had
returned to the average level of June.
Stocks had Cancelled more than so per
cent of the July-August rise. Bonds
were down Is to 30 per cent from the
high point reached at the end of August
after their three months rally. Trans
actions on the Stock Exchange had
steadily tapered of until the daily total
was only the equivalent of half hours
turnover in moderately active session.
There is no longer occasion Tor per-
nitting political considerations to DOM
inatc thc affairs OF the country: rather
an opportunity in the p0-itive note Of
protest on Tuesday againct things as
they are, for Immediately dealing with
economic and social problems on a
nonpartisan basis and putting the best
brains of the country at work on this
Job. This includes such matters as un-
employment relief. the actual rather
than the theoretical balancing Of the
budget, modification Of certain exces-
sive tariffs and an accommodation
| along practical lines and In the spirit
of the times to foreign debtors Of the
| United States
A step has already been taken in
one of these directions. Within two
days of the election communications
| we're received By the Site Department.
, 1r;% e6 oh
rents requesting an eX:eneion of the
Hoover moratorium OF June. 1881.
, which would relieve Greet Britain and
! France, and also Italy. from payments
! due by them to this country on De-
| cember Is.
In the fiscal year ending June Sc
/ 1881, the United States Treasury re-
| ceiyed in cash from IS European ma
| tions the sum of $237, ,229, 100. It also
was in receipt of United States obliga-
tions amounting to over $205, ,000. 900
/ which these debtors rendered In partial
payment Of their obligations. The
moratorium postponed further pay
ments for IL months, so the report OF
| the Secretary of the Treasury for tbs
| fiscal year 1882 will show no income
| from this source; but in the set-up oi
| the budget for the fiscal year 1888 il
had been estimated that receipts Of
principal and interest to the credit o!
foreign debtors would amount to S270,-
100000.
Trade Trend Upward.
The fears that change in the ad.
ministration here would bring abou
another hquidating movement in securi
ties were coupled with an uneaSineS
regarding the effect Of such a politi'
kr.rf ffo
always respond Immediately to events
industry takes its time in registering
its sympathy or disapproval Of them
Therefore, it is likely to be some week
or months before any positive symptom
of industrial recovery from the seasona
decline that has occurred will be visible
One significant fact is that nearl,
all Of the October percentages Of de
crease from a year ago were smalle
than the average for the first 10 month
of the year. The untitled tonnage fig
! ures OF the United States Steel Corpora
ton have increased for three month
in succession, representing the frs
definite turn since the end of 1896
The production of electricity by tn
light and power industry in the wee
before election was only 6.3 per cen
below that Of a year ago. compares
with an average reduction in the prev
ious six months Of l3 per cent from
the 1881 level.
Confidence in the improving outloo
, has been exhibited in the declaration
this week of regular dividends by sucl
! an outstanding railroad as the Uniol
| Pacific and by scores of less prominen
companies 1t undoubtedly will b
further confirmed next Wednesda
when the directors of the America
Telephone g. Telegraph Co. meet for
decision on the payment Of the quar-
= terly dividend to their more than $50, 90
shareholders distributed throughout thi
country and the rest of the world.