Evening star., 1933-03-18
Brokers' Comment

NEW YORK, March 1s.-Today,s
brokers' comment was optimistic. In
portant changes in economic and psy-
Geological influences were seen by nu-
merouS commentators, and an extension
OF the stock markets rise was generally
expected, subject, perhaps, to corrective
reaction. Some counseled caution in
following the rise
Munds, Winslow & Potter.-We be-
lieve that a change Of fundamental ma
ture has taken place in the situation.
We believe that powerful forces along
sound and constructive lines have def
nitely set in motion which will success
fully arrest the process of deflation We
believe that the long period Of declining
prices which began In September. 1929,
is now substantially at an end. We be-
lieve this Is the time to deliberately face
new conditions. We are prepared to go
on record in stating that the situation
justifies the confident expectation that
period of better times Is ahead. sub
ject, of course, to temporary setbacks
and the settlement Of temporary din
culties.
Shields & Goa very important con-
sideration to keep in mind is that the
belated readjuStment of the banking
structure threatens some liquidation.
None knows how much. Such markets
as experienced yesterday in the enthu-
siasm of reopening afford an opportu-
nifty that those entrusted with such
operations should not miss. While the
possibility of such selling exists there Is
necessity for extreme caution in follow
ing rallies when the trading pace be-
comes too fast.
Hornblower & Weeks.-The sharp
technical rally, now under way, should
follow through for several days. Busl-
ness indices at the moment are rightly
assuming secondary importance due to
the general belief that reversal In the
downward trend of business was not
likely to be witnessed until confidence
was first restored by the enactment Of
sound fiscal legislation and the removal
of uncertainties in the financial situa-
ton.
Frazier, Jelke & Co-Yesterday'
sharp advance was spontaneous OUT
burst of confidence rejecting Nation
wide relief over the removal Of many
uncertainties in major domestic prob
lens and the substitution of definite
policies regarding banking, Govern
ment finances and Federal compenSa-
ton. While some consolidation OF
ground gained may be necessary, the
extent Of the rise seems no more than
commensurate with the improvement
in the outlook.
Jackson Bros, Boesel & Co.-The
burst of buying could in no sense be
credited entirely to short covering. The
new economic conditions prevailing in
vited a substantial amount of new buy
ing from all over the country and from
foreign countries as well. Nor Is it
conceivable that the potential demand
has in any sense been satisfied. The
pace may be slower from this point on,
but We look for backlog Of buying
power which will bring further appre-
citation. The increased values created
for property will, of course, develop
can be expected to come into the mar
ketS.
Redmond & Co.-From a trading
standpoint, We would be inclined to
take at least part of ones profits on
any sharp bulges, but for the first time
IN more than two years we feel that q
sound basis is being laid for a general
recovery in the securities markets and
general business. AS we view the sit
uation, We believe that there has been
return OF confidence in the ability of
our Federal Government to handle
pressing economic and financial prob
lens and confidence must be the basis
of any sustained recovery.
Thomson & McKinnon-In view Of
the unprecedented rise in stock prices
yesterday, it is needless to say o bit
OF caution should be observed In CIV
ing vent to our enthusiasm. The grain
and cotton markets most likely will be
the markets more immediate influences.