Evening star., 1933-10-30
STOCK PR|CESFA|L
TO KEEP ADVANCE
Heavy Liquidation Appears
After Period of Hesi-
tation.
BY GEORGE T. HUGHES.

opeCldl DlSpatch 10 Inc star.
NEW YORK, October 30-Stocks
and commodities started the day with
advances, presumably in response to
the announced decision of Washington
to extend its gold buying operations
into the foreign markets, but they did
not hold their gains.
The advance in stocks was checked
after the first hour. The market dilly-
dallied up to late in the afternoon,
when liquidation in volume made its
appearance, with the result that the
general list closed lower.
Much the same happened in wheat.
Opening quotations were from frac-
tlons to a cent a bushel above Satur
days close. In the last hour this was
revised and at the end the December
optlon was unchanged, May down II,
and July down 17s cents bushel.
Foreign Exchanges Gain.
In the foreign exchanges there was
sharp advance in both sterling and the
French franc at the opening, with the
dollar, however, rallying after the stock
market had displayed its skepticlsm
about the success of the new gold
policy. The only consistent market OF
the day was that for United State Gov
ernment bonds, which sagged from
start to finish.
Stocks opened higher, with the
largest gains in the gold mining and
other metal stocks After the opening
orders had been executed, however, ac-
tivity fell off. the rise was checked and
although prices held most of the ad-
vance, the market turned extremely
dull.
1t was evident that the rank and file
OF spectators were completely at a loss
to foresee the ultimate consequences of
the new policy. whatever its immediate
effects The whole problem was too in
vowed and the situation too technical
for them. Therefore during the first
two hours after the initial bulge they
did almost nothing either way
Strength in the Canadian gold min
ing stocks was logical enough in view
OF the report that the Reconstruction
Finance Corporation might buy gold in
Canada. 1t is more probable that op-
erations will be initiated in the Lon
don market. but that will have the same
effect on the earnings of the Canadian
producers. for the amount they receive
for their output depends on the Lon
don price.
Dollar Sells Off
Domestic gold stocks were moderately
higher and United States Smelling.
American Smelling and Cerro de Pasco
improved, as they always do when the
metal group is advancing. Texas Gulf
Sulphur was another strong spot. Co.
lumbla Carbon, J. /. Case and Allied
Chemical advanced. The general list
was only moderately higher and failed
to hold its position in the later reac-
ton, but on the other hand was never
weak.
The foreign exchanges moved against
the dollar both in London. before trad
ing was begun on this side, and later
locally. AT the opening here sterling
was up 6a4 cents and the French franc
up IL points, the latter approa ching the
6-cent level Gold in London rose to
131 shillings 212 pence, against 129
shillingS 8 pence Saturday, indicating
corresponding appreciation in the franc
against sterling. The London gold price
converted into dollars at the prevailing
exchange rate was about S31.52 an
ounce. Washington fixed its price for
newly-mined gold today at $3l96, the
highest yet offered.
tCopyright. 1933)