Evening star., 1933-08-05
Country Seeks Reasonable
Attitude Toward Markets

Throughout the national discussion
of sensational activities in stocks and
grain it is apparent that the popular
verdict upholds the view that the mar
kets should be conducted In such way
as not to interfere with the economic
welfare Of the country. Some sharp
things are said about the speculators'
while there are equally earnest argu-
ments against arbitrary action. The
effect of the value Of the dollar enters
in, while such things as crop conditions
and the independent action Of the So
called alcoholic stocks are mentioned.
In the course of the arguments 1t Is
held that the markets have no effect
on the problem involved In the recovery
act.
Stocks should rise as commodities
20 up and industry resumes" says the
St. Louis Globe-Democrat, but there
has been no Justification for the boom
they have enjoyed. The claim made
for 1t that the market has anticipated
good times In 1894 10 entirely too thin
disguise for the worst Of all the ma
tional evils" The Philadelphia Eve
ming Bulletin remarks that "a grain
exchange code is prepared and the
stock market may anticipate further
regulation, but the business Of re-
stabilizing industry can't go on If the
administrations plan Of recovery is to
be used as the pea in shell game. ="
The Glendale (Caln) News-Press, as
Stunning that 1.-The antics in the pits are
quite apart from the process OF recov-
ery," advises that "tn ordinary gam
bling the player has q chance, though
small, but In buying on margin he
has no chance at all" The Columbia
Is. c. State reflects that the greedy,
like the poor, are always with us, and
their memory for hard knocks seems
Neither industry nor agriculture can
function ON the basis Of roulette
Wheel" AYERS the Asbury Park IN. J)
Evening Press, with the conclusion that
sound business demands natural prices,
attuned to the general economic situ-
stion." The Lincoln State Journal holds
to the opinion that orderly rises ano
declines suit the brokers and bankers
best, not only because OF the STEADY
profits such conditions insure, but BE-
cause violent fluctuations sometimes
smell losses for them, unless the stock
sold or loaned on Is handsomely mar
giried" That paper adds that the
speculative fever swept over the country
and operations tend to indicate that
the bull movement was the work OF
spectators, large and small; that
these operations brought about the
undoing of the operators"
"The bell wether among the stam-
peding stocks" observes the Hartford
Times, was the alcoholic group. and
its drop led the way downward, as It's
rise was in the vanguard going up"
The. Times concludes that 1T Is Q de-
moralizing thought that Q forecast
about the whisky business should have
operated as a guide to the grain and
other stock listings." The Pasadena
Star-News feels that fluctuations OF
stocks hint strongly that, despite Sen.
ate Investigations and Government
chastisements, the bright manipulators
have neither forgotten nor abandoned
their favorite pastime of shearing the
lambs" The Oklahoma City Times
contends that, with the present laws
and present leadership 1t should be
plain to the stock market, as to other
business, that it should adjust its oper-
ations to serve the public, II 1t Is not
courting more Government control"
Government action, in the interest Of
the restoration Of prosperity y sug-
geeted by the Danbury News-I1mes.
The Chicago Daily News suggests that
"if member banks in the Federal Re-
serve system were permitted to loan on
stocks and speculative bonds no more
than SO per cent Of the market value
of the collateral, the more reckless
price manipulations would become al
most impossible" The New York
Times, reviewing the last three admin
istrations, says that when speculation
is allowed to run an excited cpurse, it
is bound in the end to get into trouble. I"
The Miami Daily News believes that
"the flimsy top to our hastily raised
price, structure must come down until
there Is support s for i IN smp!Sy%sns
suggests that "spasmodic fuctuation ID
due to lack of faith In the market"