Evening star., 1934-06-24
MARKETS REFLECT
LACK Of COURAGE
ON FUTURE TREND
Both Stocks and Bonds SAG,
but Views Improve at
Weeks Close.
CONGRESSIONAL GAIN
IN BUSINESS STUDIED
Commodities Show Rallying Pow
er, Freight Loadings and Auto
Output Encouraging.
BY CLAUDE A. JAEGER,

Associates Press Financial Editor.
NEW YORK, June 23-Financial
markets approached July with notable
lack of courage this week.
AS the period of the usual Summer
lul in industry drew near. shares
weakened decisively. Bonds slid back
a little, in sympathy, and selling of
wheat co-incident with some amelio-
ration of drought conditions impaired
a heavy tone to the principal staple
markets for a time.
Sentiment improved at the end of
the week, however, as business statis-
tics showed contra-seasonal gain in
the movement of freight to close to
the years peak level and automobile
production holding around recent
levels. Also, commodities developed
rallying power.
Half of Advance Lost.
The decline in shares Cancelled
about half the advance of the pre-
ceding fortnight. The Standard Sta
tiSticS Co. price index of 80 repre-
sentative issues declined AZ points to
78.l. The index of so corporate
bonds, however, yielded only 04 of
l point, closing at 86.3 Trading
slackened. The turnover in equities
in the Stock Exchange was only
1868, $50 shares, against 4,532, 500 in
the previous week; and in bonds,
S59,678,000 par value. against STA
785, ,000
A brisk recovery in the Chicago
wheat pit at the end of the week
reduced the net losses in that staple
to only about a cent a bushel, COM
pared with week previously. Cotton
was virtually unchanged for the
period, while bar silver crept up %
of cent, and sugar was notably firm
AS result of the week end recovery
In grains, Moody's price index of Is
sensitive commodities showed a gain
for the week of 0.5 of a point. finish
ing at l4l2. This index is based on
the end of 1881 as 100.
The adjournment of Congress.
which has often been the signal for
bulliSh demonstration in stocks.
failed to generate rising prices this
time, possibly because of the tendency
of professional traders to keep to the
sidelines pending experience with
Federal market control starting July
/. AS matter of fact, the failure
of the market to rally brought out
disappointed selling, eliminating in a
furry of the most active selling in
weeks in the last hour of trading on
Friday. But that was the only time
during the week that the market
emerged from lethargy.
Prime Bonds Strong.
Passage of the housing bill in the
final sessions of Congress attracted
much interest, but had no effect upon
the securities markets, for it was felt
that the 5000, ZOO, 900 home renovation
plan would not develop rapidly
enough to have any appreciable effect
upon general business before Autumn
and that new home building proba bly,
would not develop in volume until
next Spring Indications of active
Treasury accumulation of silver ap-
peared, some after the new silver
policy act was signed, but financial
markets on the whole remained
apathetic, as inflationary implications
for the nearer future seemed lacking.
The high-grade bond market con-
tinued excellent The S131 400, 900
issue of per cent Federal Land Bank
bonds were quickly oversubscribed.
New York City was expected soon to
offer a $6O,000,000 issue and New
York State $30,00O,OO0 The
amendments to the securities act
were expected to bring out some cor
porate issues, chiefly for refunding, in
the near future.
The dollar was again inclined to
strengthen in the foreign exchange
markets. Political and economic de-
velopments in Germany were watched
with some apprehension, but the
Reichsbank maintained its firm grip
on the mark. Some important inter-
national banking quarters were still
inclined to look for eventual devalua-
ton, despite DR.. Schacht's vigorous
statements to the contrary.