Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-07-23
ERRAT|C MARKETS
LAID TO INITIATION
Writer BIames Speculation
on Weak Dollar and Cites
Many Doubts.
BY DIR. MAX WINKLER.
Special Dispa teh to The Star.


NEW YORK, July 22.-Has the bull
market, begun more than three and q
half months ago. come to an end?
Has the new deal put into effect 50
auspiciously by the Washington admin
istration, failed to accomplish what its
sponsors had expected?
Has the group of learned men from
the universities of Columbia, Cornell,
pennsylvania and the Bookings Insti-
tuition of Washington, and the many
other institutions of higher learning
from which they have been drafted,
turned out to be endowed with the same
frailties and weaknesses which are
Characteristic of ordinary mortals?
Have the promises made by states
men and economists that q new pros
pertty is IN the making for the United
States and the American people not
been kept, or Is 1t too early to pass
judgment after two or three days of
declining prices? VIII not the many
codes provided for in the industrial
recovery act suffice to bring about q
change for the better In the economic
and financial structure Of the country?
1929 Lessons Forgotten.
These questions have been and con-
tinue to be asked by an ever-increas-
ing number Of men and women who
forgetting the costly lessons of 1929,
have gradually been entering the mar
ket to make an easy" dollar. Little
did they realize that when one uses
the term easy dollar" one ought per-
haps to explain that the phrase has
two meanings: That of the severely
circumscribed financial writer who
when the market rate of discount drops
an eighth or quarter of a point, cites
the circumstances as evidence that
money Is easy" and that of the moral
ist to whom we are indebted for the
aphor1sm easy come, easy Co." It
may be left to spectators to make the
application.
1t Is somewhat unfair to chide the
public for speculative excuses in 1929,
such criticism may have been justified.
At that time. the purchase of common
stocks at fantastic prices could easily
have been avoided. The conservative
investor could still cling to his dollar,
which was woIsh 100 cents at home
and abroad.
Protection Sought.
Present conditions are radically dif-
ferent. The abandonment of the gold
oenAOolu, dllQ llIc I6SulCaQC OeCuQc IN
the value Of the dollar, the growing
lack Of confidence in the ability of any
man or any group of men to regulate
prices with impunity and the fear of
imitation on large scale, were re-
sponsible for the persistent demand for
stocks and commodities in preference
to bonds, preferred stocks, and fixed in
come issues in general A fight from
the dollar ensued. Every one sought
to protect himself against shrinkage.
However, it would be erroneous to
conclude from the developments within
the. last few days that conditions have
once again taken turn for the worse.
The setback should to q large extent
be regarded as corrective process
long overdue.
Advancing prices in stocks or COM
modlties are doubtless conducive to op-
timism. This, the Government is anx-
ious to maintain at all cost. The codes
submitted by various industries, while
constructive, are not likely to afford q
basis for bullish enthusiasm.
A public works program might have
the desired results This has been au-
thorized and 1t Is confidently expected
that it will be put into effect soon.
Efforts to curb speculation are likely
to prove futile, so long as nothing is
done about the currency.
Copyright. 1899. BY North American News
paper Alliance. Incl