Evening star., 1933-04-16
SECURITY MARKETS
REGISTER UPTREND
| IN WEEKS TRADING
Expectancy of Initiation Is
Declared Possible Cause
for Price Gain.
DIVIDEND SUSPENSIONS
ARE DISTURBING FACTOR
Passing of Payments by Many
Firms Indicates Persistence of
Defationary Process.
BY CHARLES F. SPEARE.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, April l5.-An imitation
expectancy may be said to be re-
sponsible for the main movements this
week in securities and in commodities.
Spectators have senSed the stronger
trend toward legal measures to raise
the price level and have been antici-
pating its effects through broader op-
erations in markets that would most
Immediately reflect it. OF these mar
kets the most sensitive Is that in for
eign exchange.
There are also indications Of ac-
cumulation of manufactured products
as well as commodities by the general
public. which also has its ear to the
ground and discovers q growing opinion
that conditions have reached state
where some radical action must soon
be taken to recover from the effects of
def1ation and. thereby, relieve the
country of its burden of debt and pro-
vide employment for its 100000 idle.
Symptoms Are Mild.
The symptoms Of imitation are so far
mild. They may pass away, as they
have several times in the past On the
other hand, the fact cannot be disputed
that there is deep anxiety among busi-
ness men and bankers over the absence
of any pronounced recovery in industry
as a whole since the bank holiday"
The pressure on Congress to take
action that will bring relief to this situ-
alton is daily increasing. 1t is now
question as to how far 1t can resist the
growing mass movements for the
advance in the price level. restore the
present unbalanced position OF the
debtor and open the doors Of industry
to the unemployed.
There are those who feel that some
thing positive and effective must be
accomplished in this direction within
the next three months; others believe
that the country could proceed along
present lines for another six months
without causing an economic or social
crisis. In some quarters imitation Is as
much dread as plague; IN others
a form of 1t is considered inevitable
and desirable.
No doubt q certain amount of hys-
terra has developed osat Of the increased
pressure en- groups Of debtors and un-
employed which finds its echo in Con-
gress This has not been modified by
the numerous measures that have been
advanced by the administration to give
relief to those whose difficulties seem
to REQUIRE Immediate attention. The
slow functioning of these bills creates
impatience among the distressed, who
demand a quicker form of relief. The
public Is not as passive as 1t was a
year or even six months ago. and It Is
now willing to accept remedies known
to have been permanently destructive
in their effects when applied else
where in order to obtain what may be
only a temporary improvement In its
condition.
Significant action was taken in Con-
gress this week when a resolution was
introduced in the Senate to investigate
the different forms under which in
hation might be effected. Owing to
previous experiences with imitation in
this country there has been a growing
trend toward the revaluation of the gold
plan. AS this has been proposed the
United States Treasury would raise the
price of gold from the present figure
Of $2067 per ounce to $36.17. The
latter has been arbitrarily adopted, as
it would advance the commodity price
level to that existing in 1925.
Railroad Relief.
The delay in advancing the railroad
bill by Congress this week and the
difference Of opinion that has grown
up between the administration and the
sponsors of the banking measure have
made for more caution in financial
circles. This has not been reflected as
much in security prices as in the opin-
ions privately expressed by bankers.
Apparently their influence on the ad-
ministration has modified its earlier
position toward a guarantee or 1nsur-
ance Of bank deposits. although the
popular demand for this has been in
creased.
While there have been a number Of
encouraging incidents this week and
more statements by captains Of in
dustry" to the effect that the bottom
of the depression has been reached
and a slow recovery Is taking place
there is still certain amount Of def1a-
ton in progress. One form 1t takes
is in an increasing number Of divi-
dend reductions or omissions. This has
the same effect in contracting the
purchasing power Of the public as
cut in wages, especially as the amount
involved has now reached such tre-
mendous sum. The other day the
dividend on the Nash Motors was
passed, leaving but one dividend payer
out of a group of six manufacturers
that in 1880 disbursed sits, 900, 900 to
their shareholders. .--
Practically all Of the iron and steel
companies have suspended dividends
on their common and preferred stock.
So have the copper producers. The
railroads have cut of about $3.50, ,000,-
900 from their dividend list. The
public utilities are fast catching up
with them It is quite apparent that
the American Telephone & Telegraph
Co. must now make a concession to
conditions and reduce its rate, after
maintaining it throughout the past
three years. This will affect nearly
1000 stockholders. At the same time
the plight Of the holder Of real estate
mortgages and of guaranteed real estate
certificates Is growing worse.
(ropvriobt 1O2QN