Evening star., 1934-07-04
CONTRASTS SHARP
IN STOCK MARKET
General Share Level Well
Below Mark Reached
Last July.
BY GEORGE T. HUGHES.

Special Dispatch to The Star.
NEW YORK, July 4.-The flnan-
cial situation this Independence day
presents a series of striking contrasts
to that of a year ago. In some re-
spects there has been improvement;
in others there has been retrogres-
sion.
The stock market is sharply lower.
taking it as whole, than it was in
july 1888. Then the excited Specula-
ton centering in the liquor shares
was just reaching its climax and the
market was about to break Cur
rently. with activity at the vanish
ing point, prices are not only lower
but there is no speculation of import
ance anywhere and little chance of a
break for that very reason.
Since July 4, 1888, the industrial
stocks have declined about five points
IN the DOw-Jones averages. The
losses in the railroad and the utility
shares nave been much larger. par
! ticularly in the utilities. In this we
see a trace of infiationary influence.
Under depreclating dollar, indus
trials might be expected TO make a
better showing than utilities.
Tax Burden Is Factor
A part of the difference, however.
may be aScribed to the agitation for
lower rates and to the mounting tax
burden, which has pressed harder on
the utilities than on any other group.
To take a few concrete illustra-
tiOns: United States Steel common is
selling 20 points under its price of a
year ago, loss Of over 80 per cent.
Incidentally the preferred stock at
that time was quoted around par. On
the other hand. General Motors is
practically unchanged and Standard
Oil of New Jersey is three or four
points higher.
General Electric is sharply lower
with the utilities, and Eastman Kodak
is much higher. American Can has
held very well, but Auburn Automo-
bile has lost more than so per cent of
its July, 1888. price level
In one part Of the list gains are
uniform. The metal shares are ell
higher than they were a year ago.
and here the influence is certainly eX-
pectation of initiation as well as the
increases in the prices of gold and
silver
Homestake Mining a year ago was
the highest priced stock on the
board and it still has that distinc-
ton. but the figure now is almost 40
points above last years. Dome Mines
representing the Canadian gold pro-
ducers, is up 33 per cent. Howe
Sound has more than doubled its
price
Turning to commodities. wheat is
lower than it was last independence
day. but cotton is 20 per cent higher.
Cotton is much more sensitive 10
changes in the international value OF
the dollar than is wheat. Cotton has
a world market; under present con-
ditionS there is only domestic mar
ket for United States wheat.
In general. however, the cost Of
living is higher than it was year ago.
Dollar Stabilized.
The dollar is stabilized now, where
as it had a fiuctuating gold value in
Midsummer of 1888. On July l, 1888,
the official price for newly mined do
mestic gold was S29 an ounce: TODAY
gold whether OF domestic or foreign
origin. brings S35 an ounce.
One comparison with regard TO
financial policy will suffice A year
ago President Roosevelt was telling
the London Economic Conference that
the time was not ripe for any "srti
fcial stability in foreign exchange"
adding that when the world works
out concerted policies in the majority
of nations TO produce balanced bud
gets and living within their means
then We can properly discuss a better
distribution of the worlds gold and
silver supply to act as reserve base
Of national CurrenCleS.' Today Mr.
Roosevelt is seeking international CO.
operation for the recognition of silver
as a part of the worlds metallic none
/ tary reserves.
1t remains to be added that the
condition laid down by the President
a year ago, that a balanced budget
must be a preliminary to currency
Stabilization has not yet been achieved
in his own counly The deficit was
growing in July. 1888. and it is grow
ing in July 1894 The debt of the
United States is now the highest in
the history of the country. and. while
this is no place for prophecy. it is as
certain as anything can well be that it
will be higher next July than it is
now.
,Copyright 1874. by the North American
Newspaper Alliance, Inc