Evening star., 1933-12-13

Christmas sales reports are gen.
orally good. The money policy has
helped cotton immeasurably through
the South. The lUhedt and coTn-hog
checks are doing the same thing for
the West. The Hopkins relief checks
are thGtUing the purchasing potCer OF
the city poor. Prohibition repeal has
started large legitimate nep bust
ness.
The Wall Streeters decline to credit
any bad news and are sending the mar
ket up. The belief is general that
higher market levels will be reached
within three months.
On top of all that you have the nor
NAL business trend expectations. Busi-
ness always starts to awaken as nor
NAL prelude to Spring.
Not Worried by Congress.
Usually the experts become frightened
at the convening of Congress. Not SO
this time.
Mr. Roosevelt has Congress fairly well
under control. There will be no ap-
preciable split in Democratic ranks on
the money issue. Senator Glass may
cuss a little, but the Democratic ma
jorities of both houses will be largely
with the President
In addition, he will have the progress
sive Republicans.
That leaves about 20 per cent of
Congress, the group of Republican con-
servatives, as the only opposition. That
kind of opposition may help Roose-
velts game more than it will hurt.
The prospects, therefore, favor a
tame Roosevelt session, rather than
ltUely opposition one
The one trouble spot to which the ex-
perts are looking forward is the financ-
ing the Government will have to do in
the Spring.
Financing Made Difficult.
All these expenditures cost money.
They are going to make financing more
difficult. Action must be taken regard
ing billion in Liberty, bonds coming
due April
Also, there is the troublesome ques-
ton of capital financing. Opinions
about it differ. The majority say Mr..
Roosevelt will have to thaw the capital
finance market or his recovery will hit
Spring setback. They are demanding
amendment Of the securities act.
There are some. too, who believe the
wild men in Congress will remain placid
only for the first few weeks If they
do, you can mark it down in your note
book that Mr.. Roosevelt will veto green
backs, and they cannot pass such an
idea over his veto.
Anyway the problem of crossing these
bridges will be more important when We
come to them.
Trail Leak on Gold.
The Treasury investigators believe
they have found out what caused the
gold leak.
The figure is telephoned to the Fed
eral Reserve Bank of New York as soon
Bank has open cable connections with
the Bank of England The news gets
to London almost instantaneously.
IN announcing it here, officials walk
from the telephone to a mimecgra
machine. An announcement is con-
cocted and run off. Under this set-up,
the figure has reached London seven
minutes before it arrived officially in
Wall Street from washington.
The 1uay the gold price has been
running lately no speculdtor could
make any money out OF it.
AdUGnce knowledge concerning
it lCould not be North dime to any
one.
Treasury officials really do not be-
ury employe. They will be surprised
if they get any evidence to that effect
Some observers also are worried about
financial conditions in certain European
countries. If their fears materialize,
it would have a detrimental effect en-
our rosy picture.