Evening star., 1933-08-09
ANXIOUS
ABOUT INITIATION.
Question Hangs Over Market
and Brings Reactions to
Slightest Rumors.
BY GEORGE T. HUGHES.

6peClti DlSpdtCu 10 Inc StdIs
NEW YORK, August 9.-Just as the
greatest problem facing the business
executive is how to arrange his affairs
so that he can pay higher wages for
shorter hours and bridge the gap be-
tween the time when the increased ex-
pense begins to be felt and the time
when increased turnover and higher
prices for his product will produce in
creased profits, SO the question whether
we are to have outright imitation over
hangs the financial community.
This fear of inflation-to some 1t is
tions Of trend In the stock market. One
day the dispatches from Washington
affirm that pending the Government
financing and the working out Of the
N. R. A. experiment, there will be no
further attempt to cheaper the dollar.
The next morning a report, seemingly
as authentics, is directly to the con-
trary. The President summons to his
Summer home coterie of his advisers
and the market turns on the reputed
attitude toward imitation held by those
summoned.
Traders IN Doubt.
The professional traders to whose
tender mercies the stock market has
temporarily been abandoned are torn
between two opinions. On the one
hand they would like to operate ac-
cording to the outlook for individual
industries and specific units in those
are haunted by the fear that they may
wake up some morning and find that
the powers intrusted to the President
by the Thomas amendment have been
put to use. In their opinion. to be "out
Of stocks" in such an event would be
just too bad. Therefore, whenever the
days developments seem to favor the
imitation side there is furry Of buy
ing in the gold stocks for insurance.
That happened Tuesday.
So far as the stock market goes.
there Is every reason to believe that its
internal condition Is sound. The un-
dermargined accounts were closed out
on the big break. Those that are left
are conservatively financed and there
is not likely to be much liquidation
on margin account before the new reg
ulations go into effect the middle OF
next month. The books of the spe-
cialists carry few selling orders on the
way up That is a situation that could
change suddenly, but it is the situation
today. There is no pressure on the
market from any source in sight.
N. r. A. Success Expected.
So far as the markets go also, the
verdict is that the larger units in in
dustry will successfully solve the prob
lens made by their acceptance OF the
code system, with all that it implies.
1t is not so easy to reach that con-
clusion If one sits down and calmly
analyzes all the obstacles. but the mar
kets do not worry. They believe that
business is improving and that is suf-
ficient for the present. The reasons for
it are not so important.
If one is not to lose perspective, 1t Is
to be borne in mind that world forces
making for industrial recovery are con-
tinuously at work All the efforts of
all the statesmen and financiers and all
the counsels of the economists could
not avert the depression; all their
blundering efforts cannot indefinitely
postpone revival.
The two quarters in which the great
est progress has been made, automobile
output and steel production, now are re-
porting the normal seasonal recession;
but it is not in proportion to the pre-
vious gain and is not considered an
urfavorable omen by those best in
formed. Steel output in July was the
largest of any month in almost three
wears. The automobile index touched
the highest point on the curve in two
and one-half years. 1t was not to be
expected that such pace could be
kept up without pause. Attention now
is centered on retail trade. II that is
stimulated as is hoped by the propo-
nents Of the N. r. A. the setback in the
motor car and steel industries will be
overlooked.
(Copyright, 1889