Evening star., 1933-01-29
STOCKS END MONTH
WITH SLIGHT GAINS
|, IN SMALL TRADING
Waning Confidence Revived
During EventfuI Week for
Business.
INDUSTRIAL ACTIVITIES
SHOW SOME EXPANSION
Many Annual Corporation Reports
Reveal Recent Strengthening of
Their Cash Positions.
BY CHARLES F. SPEARE.

Special Dispatch to The Star.
NEW YORK. January 28.-This week
has been crowded with events that have
either an immediate or somewhat dis
tant bearing on the financial situation
as well as on business.
The majority have been of helpful
character. While they have not stim-
ulated any additional interest in securi-
ties, with markets in an apathetic con-
diticn, they have restored part Of the
confidence that had been waning. espe-
cially toward railroad stocks. At the
same time some Of them have revealed
weaknesses in the banking and business
amount of apprehension.
Inasmuch as imitation talk has been
so general and Is becoming so SPECIFIC
In its terms, the defeat by the Senate
of measure that would have led to the
remonitization Of silver was proof that
the sound-money members Of Congress
still hold the upper hand. Further
progress in arriving at point Of view
on foreign debts has been made in the
acceptance by Great Britain Of the in
Vtation to send a commission to the
United States to discuss this question.
A further reduction in interest rates on
deposits in New York banks has had
the two-fold effect of driving funds
from this center back to the interior,
where 1t is assumed they may be put to
work for the benefit of local borrowers,
and Of increasing the demand for
United States Treasury issues and for
other high-grade securities.
Stir in Rail Circles.
The Pennsylvania Railroad found it
self in a position. after making up its
earnings statement for 1882, to declare
a dividend of so cents a share and
ments on its stock in each year since
1847. On the same day the Delaware
g. Hudson road, whose 9 per cent divi-
dend had been distributed for 25 wears,
but was reduced In the latter part OF
1882. found it necessary to omit it be-
cause of low operating receipts. More
significant than this, however, was the
announcement by the company that it
had purchased a 10 jer cent interest in
the New York Central Railroad which,
with other stock in its control, gives 1t
the commanding position in one of the
leading transportation systems of the
country. The sequel to this investment
will undoubtedly be series Of impor-
tant events not only in the affairs OF
the New York Central, but in the terri
tory which it serves and, not unlikely,
in New England
The other side Of the weeks picture
OF events includes a number of i'm
portant dividend reductions by corpora
tions that up to the present time have
been able to maintain their regular
yates; the failure of more banks, of
which several were of substantial size;
and the apparent disintegration of the
capital structure of important com
panies in the amusement field.
The first month of the year is ending
with a moderate net advance in the
prices Of stocks. The month has also
brought small gain in some phases
Of industrial activity. as in iron and
steel, where production is several points
higher this week than at end of 1882
The output Of the power and light COM
panies IS being well maintained. Car
loadings show signs of volume of
traffic that will gradually balance the
losses of last year.
Commodity prices are affected by the
extreme weakness OF limited number
of items that go to make up the aver
age.
Strong Cash Position.
The striking feature Of many reports
of industrial and public utility corpo-
rations recently has been a strengthen
ing of their credit situation coincident
with a decrease in their revenues. This
is also taking place among many mer-
camille firms that have gradually re-
duced their holdings Of commodities
and merchandise and are today in
strong cash position. There are count
less corporations and firms in the coun-
try that are in position to 60 ahead
on a profitable basis and without much
additional banking credit as soon as
confidence Is restored and there Is evt-
dence that commodities have been sta