Evening star., 1934-01-04
STOCKS RECOVER
SOME Of LOSSES
Market Generally Beats
Time, Awaiting Views on
Budget Message.
BY VICTOR EUBANK,
Associated Press Financial Writer.

NEW YORK, January 4-Forenoon
selling in stocks gave way to mild re-
covery in the late dealings today. Ex-
treme losses of l to more than
points were pared while, in the metal
category leading shares Cancelled losses
and moved UP for moderate net gains.
Late recessionS of major fractions to a
point or so were shown by American
Can, American Telephone, U. S. Steel,
Chrysler, General Motors and Consoll-
dated Gas. Transfers approx1mated
100000 shares.
Equities were a bit heavy In the
early hours in dull trading. The dollar
Jumped about nerVously in foreign ex-
change dealings Sterling dropped
about 4 cents at one time, then trans
formed the loss into a small gain.
The metals, including United States
Smelling American Smelling and Cerro
de Pasco, were the first to come back.
Losers of a point or more, however,
included Allied Chemical. American
Telephone, American Can, Chrysler.
Continental Car, du Pont, General Mo-
tors, Johns -Manville, Westinghouse and
Consolidated Gas.
Totals About as Expected.
The announced Federal deficit for the
current fiscal year of some ST 300, 600, 900,
together with S2,000,000,000 for next
year, was a little higher than had been
expected in some quarters, but was about
in line with the expectations of most
statistical commentators. Much inter-
est was shown in the Presidents pro-
posal to meet the deficits by borrowing
and not by additional taxes. Announce
ment that S6,000,000,000 must be OBJ
tained by the Government through
loans in the next six months, IN add
ton to the refunding OF $4,000. .OO0,O0O
of maturitieS, was studied carefulIy In
bond circles.
Comment on the Presidents opening
speech to Congress was varied In the
financial district, but the concesus ap-
peared to be that the markets, as a
whole, were in about the same sltua-
tiOn they were before Congress con-
vened, and that a number OF questions
of interest to traders and investors still
remain to be answered
While some elements expressed dis
appointment that yesterdays message
failed TO 60 into details regarding the
administrations monetary plans, the
majority of bankers were not sur
prised. 1t had already been pointed out
is some quarters that so far as dollar
SldDlllZdllOH Was WC1O
too many foreign difficulties to permit
| of a 'pegging" agreement at this time.
1t was thought, however, that the
President in a subsequent statement
might outline the steps that have al
ready been taken in the equalization Of
! exchange rates.
Anything May Happen.
Market analysts, while not neglecting
the political factors involved, recalled
that the first month of the year usually
| has been a period Of indecisiVe and mar
rowly limited price changes. They find,
despite the record of irregularity, that
| in more than a score of years there has
| not been a really serious break in
January and highs for the years open
ing month have for some time past in
variably exceeded the closing quota
| tions of the preceding December. 1t
was added, though, that conditions for
the moment are entirely different than
in the past and that anything may
happen"
Notwithstanding the concentration on
Washington, brokerage circles continued
TO watch trade and industry with con-
siderable optimism. Retail reviews re-
ported that merchants were quickly en-
couraged by the continued heavy con-
sumer buying that manifested itself in
the usually dull week after the Christ
mas holiday. oSt-holiday offerings
were said to be bringing a surprisingly
active response.