The Waterbury Democrat., 1934-01-02

pcE CCnb dhus IT DGCSSSdAyt ASOu6 $3,000, ,OOO,0OO in greenbacks.
 Years Top on July is. | Markets scared on the mild in-
 flation of the late spring and early
 summer. They reached new peaks
 for the year July IS and then
 moved erratically until October 21
 when q new upturn set in to carry
 through the remainder of the year
 with minor setbacks.
 | The first two months of the ] year were marked by uncertainty. 1 Stocks rose moderately in Janu- ! ary and then made their lows in | February. A total of 389 banks closed in those two months. bring l ing closings since June 30, 1928, to nearly 5000. A total of $287,- 100000 in gold left the country. Money in circulation rose sharply
 as vast amounts were placed in boarding. Circulation January l
 was s5,631. 100000 and on March l l it reached $7,532,00O. 900, a rec ord high.
 Business had almost come to standStill, and confidence had
 wancd to the extent that it was impossible to obtain credit for anything. The resumption of DclHNIIS anu IctuIIl OI was immediately reflected in booming market for stocks and commodities. Wall Street became inflation minded and speculators rushed to place their funds in equity stocks. w-priced bonds, and commodities. Tire effect of lnflation wore off when the dollar touched 69 cents in terms of for eiGn exchange, and later in the year when it was 10 cents lower the market made only meagcr re- SpOnSc.
 Introduction of 32 per cent beer and trend toward repeal of the 18th amendment brought heavy buying into the so7called wet" stocks. That buying car rled on almost to the day of ac- tual repeal December 5 - and new demand was generated for the issues before the year end. National Distiilers rose from 6N to 124M and then was split up: American Commercial Alcohol rose from f3 to 89B; U. $. Industrial Alcohol 13k o 94; Owens-Ill- nois-Glass. S11s to 9Ga4. and Standard Brands from 13$4 to 373s. |
 Mining Shares Strong
 Mining issues were prominent on the upside as the price of gold rose sharply. Homcstake scared from 145 to 373; Alaska Juneau from Ills to 33; American Smelt- ing from i0M to- 53 F and U. $. 1 Smelling from 1:1a to 1O5A Chemicals vied with the miners | for high place late in the year, | and new highs for two years were | made by Allied Chemical, Du pont and Monsanto Chemical.
 Steel issues were bolstered up [ by sharp improvement in the steel industry. L. 5. Steel touched 23% early in the year and then rose to CT F before encountering resist ancc. Electrical equipments were bid lp. Automobile shares profit ed by q jump of 63 per cent over 1882 in automobile production. Farm equipments followed grains higher with Case rising from 30h to 103 F. Rubbers and motor equipment issues followed the course of the automobile division. sharp gains in retail sales aided the merchantile issues.
 The exception to the general trend was the utility group, and that section was making moderate gains as the year drew to q close. Many issues were still under 1892, however.
 Sales Sharply Higher
 Stock sales were around 650,- 900. 900 shares for the year, the largest year in history save the boom years of 1928, 1929 and 1930. Bond sales were sharply higher than the last three years or more. There was dearth of new bond and stock offerings. The falling of, bankers said. was due entirely to the functioning of the 1893 se- curities act, which tended to stifle new flotations by imposing gigan- tic risks on the issuing houses.
 The pickup in business was as- founding in many lines. In the first nine months of 1893 aggre- gate net income of 205 companies was $2O0,369, 900. in contrast with 900. in 1882, q rise of 562 per cent according to a compila- ton by the National City bank of New York General Motors earn ings for the period rose from $10,- 555 ,000 in 1882 to $81, 1,410.000 in 1933. gain of 671.7 per cent. Dividend payments were resumed in many instances: extras were declared in profusion as the year drew to a close and many com panies paid accumulations in ar rears.