Evening star., 1934-05-27
Recovery From Sharp Drop
Leaves Prices Slightly
Below Week Ago.,
PROSPECTS OBSCURED
BY LABOR DIFFICULTIES
Restrained Silver Program Fails
to Impress Infation.Bent
Spectators.
BY CLAUDE A. JAEGER,
Associated Press Financial Editor

hSSoclateo FreSS FlDbnclal Eultof.
NEW YORK, May 26-Securities
stumbled to the end Of the dullest
week In nearly a decade, a week in
which silver provided virtually the
only enlightenment, but it failed to
glow very cheeringly, as far as spec
ulators were concerned.
The stock market declined rather
sharply early in the week, as Presi-
dent Roosevelt's silver message failed
to provide any further indications OF
probable imitation than did the
earlier outlines of the program. But
the selling quickly dried up, and
prices recovered gradually during the
remainder of the week. The price
average of 80 representative issues
finished at IT'S. net loss for the
period Of only 0.5 of point.
The turnover in the stock exchange
for the week was only 3,l79. 800 shares
or less than the average turnover pei
day at this time a year ago. The
previous week had seemed quiet
enough to commission houses. with
only 5.733,444 shares. Activity In
bonds was better maintained. with 9
volume for week of $54,973,000 pal
value, against $67 7,560,000 week
previously, but the price trend ir
corporate issues kept to slightly
downward slant. The index OF 6(
representative issues ended the period
at S5.s, a net loss of 0.4 Of a point.
Interest at Low Ebb.
The sluggishness of the markets
reflected both the discouragement ol
SPECTATORS and the apathy of in.
vestors. The restrained silver pro-
gram provided nothing that imitation
bent SPECTATORS could sink their teeth
into, and professional traders wrapped
themselves in gloom while the bill Il
regulate the securities act took flna
form in conference committee.
News at the end Of the week thai
the final bill would probably provide
for a separate commission to admin.
lister the act was moderately en-.
courasing to part Of the hnanctal
community, since Wall Street pro-
ponents of that form Of administra-
ton have taken it for granted that
the personnel would include some
persons who have had actual expert
ence in the securities business, and
would therefore not impose "unwork-
able" regulations. But there was nc
general agreement on this point In
Wall Street, some circles expressing
the view that Federal Trade Commits.
sion, with its experience with the
securities act, might be better quail
fed than q brand new commission.
Weigh Uncertainties.
The indifference Of investors seemed
to be based largely on uncertainty
over the business outlook between
now and midsummer, when the trend
is normally downward, and the fact
that the situation Is made little
more obscure than usual at this time
of year by the indications Of intense
labor unrest In some sectors. Steel
production declined little more, and
the cotton textile industry obtained
N. r. A. permission for IS per cent
production cut, but the decline tr
automobile production was checked
for the moment at least, and retail
trade reports were a little brighter.
The silver market was Indifferent
to the washington white meta
scheme, probably rejecting in part
the proposed so per cent tax on
speculative profits. and also the belief
that the Treasury's buying program
would be pursued cautiously. The
dollar strengthened against foreign
currencies, after a slight momentary
dip. Bar silver at New York closed
at 4434 cents, of u Of cent fol
the week.
Sensitive commodities. as measured
by Moody's index of Is items, lost
ground during the week, although
grains again flrmed on further
drought reports. Wheat and corr
showed net gains for the week oi
about cents bushel, while cotton
futures lost Is to 80 cents a bale.