Evening star., 1934-01-05
STOCKS RESUME
DOWNWARD TREND
Rally in Second Hour Lifts
Prices for Time, but !.
Metals Ease.
BY VICTOR EUBANK,
Associated Press Financial Writer.

NEW YORK, January 5.-Stocks al
ternately rose and fell today in quiet
dealings. A rally in the second hour
lifted the list for a time, but heaviness
in metals persisted and the downward
trend was resumed in the late after
noon. United States Smelling lost
nearly points. and declines of / to Q
were shown by Chrysler United States
Industrial Alcohol, Allied Chemical,
Mcintyre, Cerro de Pasco, United States
Steel and American Can. Consolidated
Gas. General Motors and Western
Union were a few of the steady spots.
Transfers approximated $4,000 shares.
Stocks were almost al a standstin in
the early hours, with most of the
speculative favorites dipping and rally
ing only feebly The metal group tur-
ned little heavy. after its late rally
Of the previous session, when imitation
Gry prOtagOniSts lost some Of the fervor
which they had drawn from implica-
tions of the Government huge ey-
pense account. The dollar also re-
covered in foreign exchange dealings
Grains. cotton and most other COM
modities held to narrow groove.
Utilities Improve.
There was mild demand for utility
shares. with American Telephone. Con-
solidated Gas. Public Service of New
Jersey and North American moving up
moderately Douglas Aircraft rallied
point on word that the War Depart
ment planned to buy large number Of
planes. Canadian Pacific. Du Pont, Al
lied Chemical, General Motors and
Union Pacific were fairly firm. Chrysler,
U. S. Industrial Alcohol and American
Can dropped point each. U. S. Smelt-
ing. Mcintyre. American Smelling.
Dome and Alaska Juneau yielded frac-
tions to more than a point. Minor
changes ruled elsewhere
While the financial district was still
wondering just how the Government
was going to spend all of the $4,000
900, 900 il intends 10 borrow in the mex,
six months. few doubts were expressed
regarding the ability of the Treasury to
negotiate the hugh total without any
serious difficulty
II was generally conceded that the
majority Of the funds would be raised
through the Federal Reserve banks Cu|
short-term paper. In some bankir 2
quarters il was felt that an effort might
be MADE. if conditions warrant, to feat
a IOng-term issue because CT the i'm
mense amount of existing short-termI
securities.
Opinions Divided.
Issues already outstanding. Of five
years maturity or less. have risen tCI
/ large proportions. Among these are S5.
l2481U00O in Treasury notes. 81 .627.-
sol 600 in certificates and SI.002, ,730,0 90
in Treasury bills
There was a sharp division of opin-
ion as 10 the lntationary aspects of the
new budget. In some brokerage Offices
the opinion was brozched that, in the|
.ace OF the big Government spandngI
program, 1t would be virtually impcs-
sible 10 avoid both credit and none lary
: imitation The sound money" ele-
ments however. were inclined TO lear
toward the belief that drastic currency
| expansion vas not IN the financing pic.
ture.
Industrial observers were highly in
telested il reports from Washington
that the formation Of a Government
corporation to facilitate the develop
ment OF foreign trade in agricultural
and other products, OF which there isl
now large surplus. has been recon-
mended TO the President by George n.
Peek the Chief Executives special aC-
wiser on commercial matters. Whethell
| such a corporation might conflict with
consular services and other State De-
paTtment agencies was matter OF dis
cuSslOn.