The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-12-16
Bv ELMER c. WALLER
United Press Financial Editor

NEW 4ORh, Dec. lO.-N VI J..
America, after nearly four years
of devastating depression, slowly
was emerging into better things
as 1888 drew to close and the
outlook for 1884, barring the un-
foreseen, was better than at any
year-end since 1928.
The course of the recovery,
which began shortly after the new
administration assumed office on
March 4, was not smooth. Every
bank in the nation closed on inau-
guration day and remained closed
for several days. The Stock Ex-
change was closed during the bank
holiday. Then came in rapid Or
der abandonment of the gold
standard; legislation for reopen
ing the banks; sharp drop IN the
dollar; legislation giving the Pres
ident broad inflationary powers,
including devaluation of the dol
lar by so per cent and issuance
of S3,OOO,O00,000 greenbacks;
drastic legislation on securities
flotation a vast government pro"
gram to aid the farmer, and sys-
tenn of RECOMMENDATION of industry;
Equalization of SO beer, and on
December 5 repeal Of the 18th
Amendment.
NEW DEAL RESPONSE
First response to the so-called
"new deal" was a sharp uprush
in stocks and commodities. The
rise was inversely proportional to
a drastic decline in the dollar.
Everything moved up until the
middle of July, when the years
peaks were made in business,
stocks and commodities. There
after. the effects of dollar depre-
citation were less and less, but
business began solid recovery
late in the year and things looked
brighter all around
Markets made their lows in
March. but none went to the
depths touched in 1882, when the
average for all stocks listed on
the stock exchange touched $1l.S9
per shape. The average as 1888
came to close was more than
twice that figure. All stock groups
were above the end of 1882 save
the utilities, which were adversely
effected by rate cuts and trend
in many sections toward munlcipal
ownership. So-called "wet" stocks
scared on repeal prospects; farm
shares rose with commodities, and
mining issues with gold.
MARKET FEATURES
Features in the stock market
included Homestake M n l II e
(gold). which rose from low or
lbs to a high of 373; U. S. Smelt-
ing (silver) from 1872 to 1O5 q !;
National Distillers 1873 to ia Is !;
American Commercial Alcohol
from Is to 1913; U. S. Industrial
Alcohol from 1872 to "a; }. l.
Case (farm implements) from
3O1a to 1O31s; du Pont (cheml-
caD from 321s to above 81:
Chrysler (automobile) from 7%
to 52B; and Goodyear Tire and
Rubber from 8 Il to 47h.
These issues and others on the
big board sold off from their
highs but rallied again before
the year end, and many, including
the chemicals, were carried to
1888 highs in December.
Trading was active in shares IN
the summer boom and the years
total was around the 700, OO0,~
OOO-share mark, the highest in
history save the boom years OF
1928 and 1929. ard the year
1880. Bond sales were sharply
higher than in recent years.
GOLD HAS Squirt
Taking April II as par, or l0O,
stocks in the industrial average
rose to 176 on July 10; railroads
to PIG: utilities 1871; 40 bonds
100: wheat 1877, and cotton lob.
Gold. meanwhile, spurted in the
world market and the Reconstruct
ton Finance Corporation raised
the price steadily until it crossed
S34 per ounce. against former
parity of $20.67. In terms of the
French franc the dollar broke be,
low SO cents and then recovered
part of the loss. At the highs the
bound sterling touched 1882 in
dollar terms and the French franc
6.7l15 cents, against parity o.
S4.8665 and 1892 cents, respec-
lively. The pound back in March
was quoted around S3.45 in dollar
| terms.
BUSINESS GAINS
Business made remarkable
gains, lost part Of them, and re-
sumed the recovery as 1888 drew
to a close. Steel operations rose
sharply in the summer boom, but
steel companies failed to make a
profit at the higher rates; auto
mobile business was a feature,
and General Motors Corporation
earnings in the first nine months
of the year showed rise of Gill
per cent as compared with the
corresponding period of 1882.
Factory employment and payrolls
steadily increased. thanks to the