The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-01-03
MARKETS SET.
RECORD LOWS.
DURING SLUMP
Unsnlved Problems, Bar
To Recovery, Sequel To
Trade Conditions
BY ELMER c. WALLER
United Pres Financial Editor


NEW YORK. Jan. 2. (UP)-
Financial and, commodity mar.
kets during 1882 dropped to new
low depths for the depression
no twin its fourth year. They
Left in their wake n Sc les of un-
solved problems that now stand
in the way Of recovery.
| business leaders were reticent
about making predictions, but
many felt, as the new year ap-
iprOached, that the worst Of the
depression has been seen and
that slow recovery would come
SOME time in 1888.
As stocks declined early in
1.-THE year, Europeans lost conf
dence in America and withdrew
their gold balances. France made
the heaviest Withdrawals. She
has suffered by retaining sterling
balances when Great Britain
abandoned the gold standard and
was not to be caught in SIM
/ liar American situation. And
according to many market eX-
'perts. she was not to be blamed,
for congress appeared to be un-
( der the influence of the bonus
seekers and also appeared to be
coming under the spell Of inf!a-
T, tionary panaceaS.
h NEW LOWS REACHED
\ While gold was ebbing away
bonus marcherS Storming the
capital and stocks and bonds
|! dropping to new lows, commodi'
\ ty prices broke correspOndingly,
/ Business Jagged as buyers pur'
chased only on a hand-tO-mouth
\ basis. Gradually all lines dropped
to their lowest levels in many
years. a sizeable list made new
lows for all time.
Then almost overnight senti.
ment changed. Many efforts
made simultaneously had a com
bined effect on world sentiment
! At Lausanne agreement was
reached but not ratified on the
/ German Preparations. 2n&t &C
cord virtually wiped out the rep,
aratiOns. 4 moratorium aided
other nations over the war deot
agonv. The Glass-Steagall bill
! passed, adding about 4 billion
| dollars in free gold to the Fed,
eral Reserve backlog. Radical
measures. including bonus bill
were defeated by congress. Then
congress adjourned.
I Stocks had plumbed new depths
/ for the depression on July g.
! From then on for two months
they rallied.
! But the rally ended when the
political campaign started. The
first warning of a Democratic
trend came in September when
Maine went Democratic. Stocks
Itumbled Immediately About the
same time. business turned down
i seasonally, the dip being acceler-
ated by caution IN advancing OF
| the election.
/ STREET UNAFFECTED
! Wall Street gradually was edu-
Gated to Democratic victory
and when it came the market
took it without q Qualn. How
ever, other events came into the
picture to prevent a recovery
that many had anticipated. Inc
principal of these was another
drastic decline in the pound
sterling to new record low levels.
THAT drop came simultaneously
with the approch of the Decem.
her Is war debt instalment of
: Great Britain. French francs
! broke to new lows for the year
and European currencies gener-
ally dropped with the pound IN
favor of the American dollar.
Reduction in value OF the
pound sterling seriously upset
! the trade relations of Great bri-
tain. The Englishman's purchas-
ing power abroad shrank sharp
!iy, However, across the Pacific,
Japan also was having difficulty
With her currency, the yen. 1t
dropped more than so per cent
As the pound sank into a rela-
| lively similar level there came
! the prospect of Great Britaln's
J switching more of her trade to
! fbe Orient away from America
The pound rallied sharply when
Great Britain made her war debt
paym ent, while the franc drop
ned as France defaulted.
DECLINE OF POUND
The decline of the pound had
reduced the Englishman's Pur-
chasing power. 1t also under
mined many commodities. Amer
lean wheat broke to record low
levels and thus reduced the pur-
chasing power of the American
! farmer to a small margin of the
levels at which he had contract
ed many debts, notably mort
cages. Silver broke with sterl-
] ing setting an all time low rec
ord below 25 cents fine ounce.
Hundreds of stocks had their