Evening star., 1932-03-06
BY DR.. MAX WINKLER.

Special Dispatch to The Star.
NEW YORK, March 5.-The credit
situation seems to have undergone a
marked change for the better. This
applies not alone to the United States
but to many European countries. 1t ID
especially true of Great Britain and the
Scandinavian kingdoms.
While it must be admitted tnat
fundamentals have not as yet improved
sufficiently to warrant unqualifled en-
thusiasm, 1t cannot be denied that SEN
timent has changed materially and that.
as a result Of such change, much
better feeling prevails all around.
Considerable satisfaction is derived
in the United States from the actual
aid which is being extended the rail-
ways and various financial enterprises.
On former occasions, many instru-
mentalities were brought into being to
afford financial assistance, but only In
rare instances was such aid forthcom-
ing The latest measures, including es-
pecially the Reconstruction Finance
Corporation, are not merely theoretical
enterprises The recent constructive
activity of the corporation amply dem
onsrates this point.
Stock Market Inquiry.
The United States Senate committee
charged with investigating stock market
operations has before it a thankless
task. 1t may be seriously doubted
whether the committee will succeed in
discovering all it expects to find.
At any rate, the program is a most
ambitious one. The committee is de-
sirous of finding out not only those al
legedly responsible for the setback In
prices, but also those who helped boost
the market to record heights in 1928
and 1929.
The committee may be interested to
learn that large earnings and CORE
spondingly large profits in measure,
were responsible for rising quotations
three years ago and that declining
profits and poor business conditions
were the chief cause of the decline in
prices during 1901. OF course, the
pendulum, as a rule, swings too far in
both directions. Senatorial investiga-
tionS are not likely to change this.
Dividend Cut Expected.
With earnings of General Electric
falling short of dividend requirements,
the reduction in the quarterly rate to
81 share, as compared with Sl.60 paid
formerly. was in line with expectations.
Those who anticipated maintenance Of
the old rate based their views upon
the very strong financial position Of
the company, as evidenced from the
report which shows current assets Of
more than s219, 9,00O 900, or almost eight
times current liabilities.
Banking Situation.
Considerable improvement may be
assumed to have taken place in the
banking situation. Reliable reports are
to the effect that in a number of in
stances where financial institutions OBJ
tanned accommodations, loans have al
ready been liquidated, while in other
instances applications for loans have
been Cancelled.
Commenting on these developments,
Wilson W. Mills, chairman Of the De-
troit branch of the National Credit
Corporation, predicts that before very
long, banks will feel the effects of the
new confidence inspired by construc-
tive movements now well under way
to the extent of no longer needing
money.
Metal Prices.
The outlook for the future price Of
metals would seem encouraging in the
opinion of Simon Guggenheim. preS1-
dent of American Smelling and Rein
ing. 1t Is probably for this reason that
Mr. Guggenheim states that the man
agement has no intention of selling all
or any portion of excess metal stocks,
adding that if the company holds these
stocks until the return Of more normal
conditions, the metal losses written on
in 1890 and 1881 will be regaineds in
some subsequent year.
(Copyright, 1892. by the North American
Newspaper Alliance, Inc)