Evening star., 1933-07-22
The Markets,

The attitude of the Roosevelt ad-
ministration toward the crash In stock
and grain prices in the last few days
has been that Of watchful waiting.
The opinion is expressed In the highest
quarters that the Goyernment's chief
concern today Is with the employment
of the people and an increase In the
buying power. So far as the stock
market Is concerned the administra-
tion's view Is that the prices have been
far ahead Of true economic conditions,
that it Is not possible and never has
been possible to prevent foolish people
from bidding up stocks beyond their
value and SPECTATORS. big or little.
cannot be saved by governmental ac-
ton OF any other kind Of action when
the squeeze comes.
The unfortunate part Of over r-specula-
ton in stocks and commodities lies In
the fact that when . crash comes the
prices of stocks and commodities 60 far
below their actual values In the panic.
with owners dumping securities and
grains and cotton on the market in an
effort to save something out Of the
wreck" The last few weeks have seen
market prices rise higher and higher
all along the line. It was bull market
of the most bullish kind. That kind Of
. market inevitably was to be followed
by q tumble. The industries Of the
country, which have begun to rally, did
not warrant in themselves these great
increases in prices Of securities or Of
commodities. But the gambling spirit
apparently had seized the speculators
again.
II the Government Is to intervene to
check falling prices then 1t should IN
all equity check prices which, advance
beyond Q safe limit. How the Govern
ment could control the markets Is a
mystery. How 1t could check the spec
ulative spirit Of the people is even more
q mystery. The only methods suggested
look to absolute control Of the markets
by the Government-with power to
close them II It sees nt. The danger
In such q plan Is that legitimate bust
ness might be strangled as well as ille-
gitimate or unsound business. Early
reports from the New, York Stock Ex-
change today indicated Z decided rally,
with stocks advancing 81 to -. They
told also Of plans Of the Stock Exchange
to curtail business hours, beginning
Monday, with the exchange not to open
until noon each day until further notice.
While the attitude Of the admins
tration has been Of watchful waiting,
it could not Of course be unconcerned
In the face Of tumbling prices, the
psychology Of which, II nothing more,
might hinder the whole forward
movement toward recovery. President
Roosevelt Immediately upon becoming
Chief Executive called attention to
the need of laws for the better regu-
1ation Of the markets. It may be ex-
pected that the administration will not
let the grass grow under its feet In
formulating q program to deal with
the markets for submission to the Con-
gress at its next session. Indeed, 1t Is
the duty Of the Government to take
cognizance Of what has happened in
the stock and commodity markets In
the past few weeks. The tremendous
imitation Of values Of stocks in the years
1927, 1928 and 1929 were IN large part
responsible for the crash which was
the forerunner Of the disastrous de-
preston out Of which the country is
nov emerging. Some means Of control
must be found, If there is to be an end
to the continuing series Of infiations
and crashes.