The Waterbury Democrat., 1933-02-02

"The securities markets develop cd strong trend of 0 character refectlng Q certain degree of finar- cial confidence in limited invest ment circles that was in distinct contrast with more general opin- ion regarding either political or business conditions. Significant of q revival of financial confidence was the course of the bond market. Whereas previously United States government bonds were about tho only strong feature here, invest ment capital began during the per- iod under review to seek more ag- gresslvely for favorable opportun- ities in less ultra conservative ds- sues.
 "The commodity price situation during this period showed increas- ing stability, several standard in- dexes registering during the final week slight advances following several weeks of slowly declining prices. Figures for general trade conditions were somewhat confused by the holidays, but there appeared to be a further lessening of tho de- flclency in activity as compared with corresponding periods in re- cent years. Tn q relative sense, q reduction in tho negative aspect of business Is c positive gain as com- pared with tho record of tho past three years with their continuous diet of increasing recessions.
 "In banking the year end state-
 nonts of condition showed that tho key positions in the banking struc- turo as represented by tho larger institutions and the financial cen- ters in strong, llquld position While an unBatisfactory condition persisted fin some sections, the average deposits involved in sus- pended banks wero growing small- CT, which was tho reverse of~the trend in q previous stage of tho banking problem. 4 Fundamental strengthening of the major. fnan- 'clai structure was definitely in pros gress. It Is notable that bank bor- rowers from tho Reconstruction Fi- less than $234,000,000. 20 per cent Of their loans, 2 better showing than for any other class of bor- rcwer.
 "Even in dealing with the poii- tlcal situation as factor in the condition of business, 1t is possl- bic to conclude with c slightly hopeful note on tho disposition of congress to provide q modification of tho bankruptcy law which would allow business concerns and cor- porations to mako adjustmentS of their capital structures and arrange competitions of their obligations with their creditors, without being forced by them, or by obstructive or intransigent minorities of cred- itors or stockholders, into bank ruptcy proceedings, with all they moan in the way of dissipation of assets and destruction of business organizations.
 "Tho plan proposed would per- nit, under the protection of law. an orderly partial liquidation of many businesses which cannot walt longer for general business recoy- cry to pull them out Of their difil- ouities, but which. on the other hand, do not merit complete de- struction through insolvencies. A general readjustmont of capital and debt structures by this means would doubtless so far in remedy ing tho present inequitabie and perilous situation caused by what appears to be q definite lowering of the price level, which renders 1t Impossible for many debtors to meet in full, with present values, obligations incurred at higher levels. This bankruptcy law change, therefore, would constitute m effective and beneficial eco- homie influence, and would go far in robbing the infationists of their chief argument in favor of raising tho price level by flooding the country with debased currency"