Evening star., 1934-04-01
Roosevelt Stand in Auto.
Labor Fight and Defeat
of Veto Cited.
INTEREST IS FOCUSED
ON FRENCH SITUATION
Final Showdown on International
Currency Question Expected
Within Three Months.
BY CHARLES F. SPEARE.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, March 31.-The end
OF the first quarter of 1884 finds the
business mind confused over the con-
Trajectory phases Of the recovery pro-
gram, the administration swinging
10 the right in the motor strike con-
troversy. but Congress moving well to
the left In the veterans bill vote.
wall Street has been fighting to
retain the privileges that would be
oenleo II II the modified Fletcher
Rayburn measure becomes law. The
stock market has been inert and fea-
tureless, and the bond market quiet
put steady, while attention has been
focused on France, where the battle
TO maintain the franc at its present
level grows more intense,
Tne trend Of industry and of poll
tlcs, the movement of securities and
the f1nal showdown in the interna-
tlonal currency situation may be de-
termlned for year or longer within
the next three months.
In spite of the skepticism in some
business and banking circles over
the permanency Of the motor strike
settlement, the general opinion is that
IN it President Roosevelt accomplished
mucn Tor the good Of industry and
was impartial in his decision. His
phrase, I'VE have charted a new
course In social engineering in the
United States" suggests the type of
social philosophy that the average
man would like to see put to universal
use in trade.
Take Investors Side.
There has been nothing in either
tne motor or the railroad labor ne
EQUATIONS to indicate that the ad-
mlnlstration was taking sides or doing
more than attempting a Just settle
ment OF conflicting proposals. On the
otner nand 1t has been clear that the
sympathy OF official Washington in
the STOCK Exchange regulation meas
ure has been with the investing public
ana that strong prejudices there have
a1ected legislative Judgment. For this
wall Street Is partly to blame. in not
correcting the evils within its own
FAMILY until they became SO odious
IhaV an outside authority felt COM
PEELED to eradicate them. In doing
thls the administration has developed
ierVor Tor reform more intense than
intelligent.
The political and financial implica-
tlons OF the congressional vote on the
FreSioentS veto of the veterans bill
are serious, more so with respect to
the latter than to the former. They
inolcate that Congress is of a mind
10 legislate in favor of aggressive
mlnoritleS, that It has disregarded the
| attempt to sustain the credit of the
Government, and, under pressure. NAV
later be found advocating those forms
OF currency imitation that lead to dis
aster.
FOR the last two months the obli-
cations Of the Treasury have been
rising In price. All new issues have
| peen heavily oversubscribed. The
latest offering Of discount bills has
peen sold at rate of .O8 per cent.
The stage has been set for a large
iong-term loan to absorb the unde-
poslted portion of the called fourth
"A per cent bonds. The receipts of
the Treasury have been nearly SUM-
cIent TO meet current expenditures,
Inc prediction that the national debt
a. tHe eno OF June would be S32.-
oOO, 100000 appears to have been over
estimated, for it is now slightly more
than $26.Q00,000,0 and cannot be
increased $4,000, ,0OO, 900 in the next
quarter. Continued strength of the
treasury position rests on confidence
IN orthodox methods Of financing.
The fact that there Is q great supply
OF money available for investment is
secondary consideration.
Yields on Municipal Bonds.
The effect Of the new turn of
events in Washington will be shown
next week when announcement is ex-
pected Of the terms of the new Treas
ury loan. At about the same time
the State OF New York is to make the
largest offering Of its bonds in sew
eraI years. The pattern Of the
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