Evening star., 1933-06-04
Average Advance of 80 Per
Cent Recorded in Last
Three Months.
RECOVERY is FOUNDED
ON TRADE IMPROVEMENT
London Economic Conference Ex-
pected to Give Cue for Action
of June Markets.
BY CHARLES F. SPEARE.

Special Dispatch to The Star.
NEW YORK, June 3-In the last
three months there has been an aver
age rise in common stocks of over 30
per cent and a comparative advance in
speculative bonds. The former group
is now quoted at the highest level since
the end of 1881.
Sensitive commodities have enjoyed
an equal degree of appreciation. Farm
products rose II per cent from April
is to May 10. The general commodity
list, however, shows recovery OF ABOUT
Is per cent.
The volume Of trade has expanded
sharply since the middle of March.
when it was nearly 20 per cent under
that of the year previous. 1t is today
IS per cent higher than at the start
of June, 1882. Producers, manufac-
turers, merchants, jobbers, investors
and spectators have all realized an
increased degree of prosperity for most
of the gain has been net.
Stock Buying Recommended.
This momentum, however, is not re-
garded as sufficient. 1t must be main
tanned and stimulated so that prices
will further advance. The f1re mas
been lighted and must be kept going:
II it goes out, so it is argued, the chill
will be greater than before. 1t Is sig
nificant that recovery has been ac-
complished naturally, for the direct
use of the imitation machinery OF the
Government has so far been small.
Money is being withdrawn from saw
ings banks and put into stocks Advice
is being given by bankers to place
liquid trust funds into common stocks.
Good bonds are being sold and the
proceeds invested in equities"
Wall Street, the seat Of the mighty
In 1929, scorned and Inundated three
wears later, once more Is the center OF
the country's attraction.
There is beginning to be some doubt
expressed as to whether the full nfla-
ton program Of the Government Is es-
sential to satisfactory recovery. The
attitude of mind of many people who
accepted it six weeks ago, when the
outlook was dark and prices were low,
is changing. Obviously the wheat
grower must have regained confidence
in his ability to help himself, with
wheat at rs cents a bushel, and the
Southern planter does not feel so i'm
poverished now that cotton is about l0
cents pound. The fact has previously
O06n enDUdSlZcO
rise in bonds has solved some OF the
most serious and immediate problems OF
the banks.
Effects OF Advance.
The effect of the rise in stocks on
individual holders, who had withdrawn
for the past two years as buyers OF
non-essentials, has been an important
factor In lifting retail trade out OF the
dumps. From Chicago this week comes
the report that four large estates. OF
which two had been seriously crippled
bv the decline in securities OF the past
year. have realized enough on the re-
covery to permit them to make the dis
tributions authorized by their founders
and to meet all inheritance taxes.
without any functioning OF the ma
chinery of government for reviving
business by edict. there has been
steady and healthy expansion in its
volume.
Markets for securities have already
gone q long way in accepting the fun
benefits Of q natural recovery in busi-
ness, plus those Of impending infla-
tionary measures. In less than three
months they have leaped forward to a
level where they approximate those at
the end of 1881. Figured in new values
of stocks and bonds, the wealth OF the
Nation has risen many billions Of dol
lars since the end Of March. To this
must be added more billions from the
rise in commodities.
There have been positive signs this
week that real estate is beginning to
feel the effect of these new impulses.
Foreclosures are decreasing, there Is
limited market for urban and suburban
property whereas there had been none
the past two years. Pressure on debtors
is lifting. Collections are improving.
This month will bring further wage and
salary increases.
Watch London Conference.
The approach to the London Economic
Conference Is In an atmosphere OF I'M
certainty and conflicting views. If too
much is not expected Of this meeting
Of international experts the conclusions
may be acceptable as a start toward
meeting the problems that must be
solved before the first steps toward
permanent worldwide recovery can be
taken. Business and markets, there
fore, in June will take their cue from
London, as they have been governed
since March by the various political
and economic proposals emanating from
Washington.
(Copyright, 1889