Evening star., 1933-07-30
WILD SPECULATION
CURbED AS THREAT
FOR N.R.A. PROGRAM
Sharp Readjustment in Prices
Helps Technical Basis
and Warns Buyers.
BY CHARLES F. SPEARE.
Special Dispatch to The Star

! Special Dispatch to The Star.
NEW YORK, July 29.-The success
of the industrial recovery program de-
pends almost as much on controlling
speculation in commodities and in Sc
curities and keeping prices Of essen
tials in balance with wages as on
creating a sympathetic atmosphere
throughout the business world toward
the new economic philosophy.
Speculation threatened to upset the
administration plan. 1t has been
curbed by measures that appear arbi-
trary to those who insist on having q
free hand in all of their operations
and who persistently abuse their privl-
leges. Much Of the extravagant ma
nipulation Of stocks, grain and cotton
could have been avoided by the ex-
changes had their officials been more
interested in promoting moderate
price advance than in making commls-
sions for their members.
There is much to be said in favor
of Government regulation after the
near catastrophe of last week and the
SuOS6OuGIll
extended accounts in Chicago and
vicious practices by Triggers" of securi-
ties in New York and elsewhere.
Public More Cautious.
Fortunately the foundation on which
the markets rested was q sound one.
The readjustment in prices has gained
for them q stronger technical position.
Their recent experience has tempered
the mood OF the public and developed
in 1t a desirable spirit of caution and
inclined ii to look at conditions from
a broader viewpoint.
There is social aspect of the mat
ter that is too frequently overlooked
and was completely ignored prior to
the latest collapse in prices. President
Roosevelt, in his address to the Nation
Monday night, in which he was essen
TALLY socially minded, referred to .
nation "half boom and half broke" J."
and further said lit doesn't help much
If the fortunate half is very prosper
ous-the best way IS for every one to
be reasonably prosperous"
There still are between 11.000 600
and 100000 unemployed, though
Gen. johnson hopes that SO per cent
of these may be at work by Labor day.
At the same time comparative few
have been realizing inordinate profits
in commodities. Because Of their op-
erations, the general price level Of es-
sentials was affected to the disadvan-
tage of the consumer. He and not the
producer will determine the degree OF
recovery.
If it were true a week ago that busi-
ness men are responding generously to
the efforts of the administration In
establishing management codes, their
cooperation has been more unanimous
and positive since this weeks appeal
by the President In spite Of prejudices
that are political in their origin ana
others that crxpe from an unwilling
ness to accept ! new order OF things
and be manager instead Of managing,
the majority arc impelled to 60 along
with the industrial program as the one
hope for salvation.
The best opinion is that it will Sue
coed. The doubt expressed Is as to
the period Of success. The maximum
expected is from 18 months to 2 years.
Statements for the June quarter
show that the Nations corporations
are moving out Of the red and into
the black. That of General Motors
was sensational in its results. Earning
80 cents a share in the three Spring
months, the company in the half year
more than covered the present divi-
dend requirements on its common stock
for a full year. In the month Of June,
the United States Steel Corporation
had net revenues of $4,165,870, which
compared with a net deficit IN April
of S763 ,380 AS July steel operations
averaged So per cent of capacity. it
is not improbable that the September
quarter will produce some revenue for
the common stock.
Railroad net receipts for June not
only exceeded those of last year, but
ran ahead of the month In 1881. 1t
is anticipated by executives Of many
lines that the deficits of the first half
of 1888 will be erased by October or
November and that, instead Of earning
only half their fixed charges, as In
1892, they will cover these charges to
December 81 and build up . surplus
even after adopting . more liberal
maintenance policy.
Bank Progress Cheering.
Increased demand for electric power
will put back on their former dtvi-
dend basis in the Autumn q number
of preferred stocks CT public utility
operating companies that were COM
PEELED to make reductions last Winter.
It is encouraging also to note the
progress that is being made to release
the frozen assets of the banks. The
sum of deposits now withheld is $2.-
800 ,000, 900, about evenly divided be-
tween national and State institutions.
Many communities still are impover-
ished by the inability Of their banks
to function
fconvr;0ht 1o22