Evening star., 1933-10-08
MARKETS REFLECT
CURRENCY FEARS
At LOWER LEVELS
Prices Tend to Improve,
However, Near Close
of Week.
BY CHARLES w. STORM,
Editor, the News Service Of Wall Street.

Eoltor, the news service OF wall street.
NEW YORK, October Z (NAN.A).-
Uncertainty regarding the adminiStra-
tion's currency policy continued the last
week to eat into the prices Of securities
although toward the end of the week
the chipping-of process which has been
going on in the stock market gave indi-
cations of slowing up.
The extent to which the uncertain
monetary policy has affected stock
prices unfavorably may be cleaned
from the fact that, according to figures
announced by the New York Stock Ex-
change, the total quoted market value
of securities dealt in on its floor depre-
ciated from s36, 1853 .889,3 ,331 September
to S32, 2,729, ,938,196 October l. The
average price of the total securities
listed also deprecated from S28.42 to
S25.32 during September.
Despite weakness in the grain mar
ket, especially pronounced on Friday,
the stock market is beginning to exhibit
relatively firmer undertone and the
character Of the buying IS reported to
be Of better caliber than the selling
The better quality of the buying can
be attributed to less apprehension en-
tertained Of currency imitation, due to
the fact that developments and news
from Washington and other parts of
the country reflect an increased demand
for sound money and less clamor for
imitation.
Bank Policy Watched.
The street Is especially anxious with
regard to the latest step on the part
of the administration to stimulate in
dustrial recovery and increase buying
power through the reopening of closed
and restricted banking institutions.
There Is total Of more than $2,OO0,-
100000 of frozen" deposits in these
institutions and the freeing Of this
reservoir Of funds would have a most
helpful effect on the recovery move
ment.
BY lending money through the Re-
construction Finance Corporation to
these closed and restricted institutions
and accepting their collateral long
step would be taken toward increasing
the volume Of currency and credit with
out issuing fiat money.
Such action. it is also believed. would
have most reassuring effect on bank
ing and business interests and would
replace apprehension with confidence
in the policy of the administration in
handling the financial phase of the
industrial recovery.
Efforts being made by the Govern
ment to induce the railroads to buy
supplies. especially rails and plates, and
thus stimulate the so-called heavy in
dustries. are being received with favor
but the action of Joseph B. Eastman,
CO. ordinator Of transportation, in speci-
flying price of less than $35 ton for
steel rails took some of the cheerfulness
out of the action.
Afraid of Losses.
The steel manufacturers say they
cannot take the business at those fig
ures without incurring losses. The
attitude of the Government in this
matter does not seem reconciliable with
its price policies in other directions. It
seems everything the Government sug-
gests Immediately meets opposition in
one form or another and it is such
developments that tend to slow up the
momentum Of recovery
1t must not be forgotten that one
important purpose is to get more people
back to work and this undoubtedly has
caused the administration to display an
Indifferent attitude toward the posi-
bility of profit or loss on the part Of
the corporations that receive orders.
Considering the frequency with which
new developments and rumors of others
are received in the financial district
there is little wonder the stock market
fails to show any consistent pattern
longer than one session. The specula-
tor and investor are SO bewildered that
there is a constant shifting Of funds
from one medium of speculation or in
vestment to another
This shifting is responsible for the
highly irregular tone Of the stock mar
ket and reflects an exodus of specula-
tors and investors from the railroad
and public utility groups into the oil,
gold, sugar, alcohol and other groups,
where possibilities Of larger earnings
are considered better for the near
future.
Securities Act Scored.
It is generally recognized that an
unlimited amount of capital could be
injected into general industry for the
long term if the securities markets had
a degree of attraction. N some direc-
tions there is undoubtedly sufficient
brightness in the outlook to attract new
capital, but the directors and officers
of the prospective corporations of issue,
together with investment banking in
terests, are reluctant to issue any new
securities owing to the severe provisions
Of the securities act.
(copzrisht 1883, by North American News
paper Alliance. Incl