Evening star., 1934-07-08
MARKETS FINISH
ONE OF QU|ETEST
WEEKS IN DECADE
Steady Prices Taken as
Sign of Optimism Over
Fall Prospects.
HOLIDAY AcCENTUATES
SUMMER SLACKENING
Choice of Kennedy as Commission
Chief Proves Agreeable Sur
prise to Wall Street.
BY CLAUDE A. JAEGER,
Associated Press Financial Editor.


NEW YORK, July Financial
markets drifted through one of the
quietest weeks OF the past decade
But the fact that securities prices
held up in the face of an abrupt sea-
SOnal Slackening in industrial produc-
ton. with steel production falling to
the lowest level in Is months. was re-
garded as indicating considerable op-
timism over the prospect of Autumn
business revival.
The independence day holiday. to-
gether with the protracted heat wave,
served to accentuate the lethargy Of
the financial community. Both stocks
and bonds crept a trif1e higher. some
OF the gilt-edged bonds. including
United States Governments recording
new highs for the past several years.
1t was oficially the first week Of
Federal regulation Of the securities
markets. but inasmuch as the securi-
ties and exchange act applies chiefly
TO issues on registered exchanges, and
the exchanges will not register until
September /. the Federal control took
effect in theory only. Nevertheless.
professional traders were distinctly on
their good behavior. while the new
Securities Commission organized and
prepared to draw up its regulations.
Choice Is ReaSsuring.
Choice of Joseph P. Kennedy as
chairman of the commission was
decided surprise to Wall Street, and
it was reasSuring to the securities
business to have a man who has been
known for large-Scale transactions
himself chosen for the post. Never
theless, there was widespread con-
victinn that regulation will be decid-
edly rigid.
The commodity markets pointed
upward here and there. such staples
as rubber sugar and silver reaching
new highs for the past four years or
so. but grains and cotton turned
somewhat reactionary. Wheat futures
lost TO 2 points, and cotton declined
nearly So bale.
The favorable reception accorded
the largest corporate security issues
in some time-the S50,000,000 4i4
per cent Pennsylvania Railroad bonds
and S35 .OOO, 900 of Edison Illuminating
of Boston per cent notes-led TO
hopes that the remainder of the year
would see a pickup in the new-iSsue
market, but investment bankers said
corporation officials were still wary of
the securities act, and new financing
would probably pick up only gradu-
ally.
Freight-car loadings and electric
power production as reported for the
last week of June. rose to new highs
for the year, but such industrial re-
ports as were available for the first
week of July indicated sharp curtail-
ment. rejecting in part the usual
midyear Shut-downS and in part
desire to work of inventories in prep
sration for Autumn.
Reich Crisis Watched.
The German political crisis was
watched with keen interest. particu-
larly for any clues it might give to
the probable Outcome of the extraor-
dinary economic position of the
Reich With DR.. Schacht still hold
ing the helm of the ReichSbank, no
immediate devaluation Of the mark
seemed i'll prospect. The fact that
the Germans were willing to modify
the siX-month transfer moratorium
sufficiently to permit payment of in
terest ON the British portions of the
Dawes and Young plan bonds led
American interests to protest vigor-
ouSly against discrimination, and
some banking quarters thought that
an agreement to meet the interest on
the American portions of these issues
would be forthcoming.
The weeks total turnover in the
Stock Exchange amounted to only
1893. 453 shares, and that would have
constituted 8 very dull single session
according to the trading standards of
year ago. In the previous week,
which contained one more session,
only 1901, 500 shares were traded.
The turnover in bonds amounted to
SAC ,938. 600 par value, against $53,-
304 900 the previous week. The
Standard Statistics Co. price index
of 80 stocks rose 6 Of point, to
1876, and the index OF go corporate
bonds, i of a point, to 86.5.