Evening star., 1934-09-02
|U. S. Bonds Go Moderately
Lower as Pound and
Dollar Ease.
STOCKS GIVE UP MOST
or LAST WEEKS RISE
Corporate Loans Are Fairly Steady
With Exception of Carriers.
Commodities Quieter.
BY CLAUDE A. JAEGER,
A.soei.t.d rrssx Financial Editor.

NEW YORK, September 1.-Finan-
cial markets ended August this week
blinded by a fresh fog Of confusion.
United States Government bonds
receded moderately. and both the dol
lar and the pound sterling were de-
pressed in foreign exchange dealings,
the British currency reaching rec
ord low in terms of the present
French franc, and new low since
February in terms Of the dollar.
Corporate bonds held up fairly well,
with the notable exception Of rails,
but stocks gave up most of last weeks
advance, although trading was ex-
tremely duh, reaching the smallest
Saturday volume in 16 years at the
end Of the week.
Commodities were quieter, and
grains and cotton were inclined to
subside, although hogs and live stock
continued to climb. Hogs crossed So
q hundredweight, against $3.50 q week
ago, and $500 last January. Cotton
futures showed net losses for the
week of 20 cents to 81 q bale, and
wheat futures receded small fractions
to nearly cents bushel.
Helped Early in Week.
United States Government bonds
were helped early in the week by
Secretary Morganthau's recapitula-
ton of the Treasury's position, In
cluding his statement that he ex-
pected ultimately to use the 81 ,00O,-
100000 gold profit" to reduce the
public debt. The Federal obligations
were actively traded and slid on
moderately as the week progressed,
however.
Despite further selling of United
States Governments, however, any
tension that may have existed over
the Governments $1,700, 100000 re-
funding to meet September and Oc-
tober maturities, was eased by news
toward the end of the week that this
would be accomplished in the ortho-
dox way.
Railroad bonds encountered some
| selling as the carriers painted dark
picture of their situation in a plea
for higher freight rates. Steels were
| adversely influenced by q further sag
/ In production to the lowest since the
| Spring of 1888. and announcement
Of 10 per cent wage cut for white
collar" workers by United States
Steel. Republic and Jones &
Laughlin.
Business Is Uncertain.
The confusion in financial circles
seemed to come largely from uncer-
tainties over the outlook for Autumn
business. The threat Of q general
strike in the textile industry next
week was one of the weeks chief
worries. Nevertheless, week end sur
veys said that retail trade was show
ing unexpected vigor, and . number
Of business analysts thought q fair
Autumn improvement in consumers
goods industries was in prospect.
| Wall Street conservatives received
a slight Jolt in the news that Upton
Sinclair, former Socialist, had won
the Democratic nomination for Gov
ernor In California. Furthermore, the
reported resignation of Federal Budget
Director Lewis Douglas was not q de-
velopment to please the financial dis
trict, in view Of his position as the
Administrations outstanding exponent
Of o balanced budget.
Seasonal Factor Seen.
The world monetary confusion was
again brought to the fore by the drop
In the pound sterling. 1t dropped
about cents in New York, getting
below IS for the first time since
February. Seasonal pressure against
sterling usually develops at this time,
however, and exchange experts were
not willing as yet to regard this move
ment as indicating the beginning of
a currency war or race for deprecia-
ton.
The Standard Statistics Co. price
index Of 30 representative stocks
declined during the week 81 points
to 72.5, and the index of so corporate
bonds, o.4 Of . point to s4.1.