The Washington times., 1934-07-12

or FOLLOW Lewis Haney
through. Yesterday dullness was
resumed, with little change.
Probably there is important IRE
Bistance" in the leading stocks at
levels not more than one or two
points higher. Personally. I can
zee no reason at present to antici-
pate that such resistance will be
broken in the near future.
The President is away. His
lieutenants are off on speaking
trips, campaigning for the New
Deal party. Under the present
virtual dictatorship, it hardly
seems probable that any vital
change will be made till the
chief gets back.
Then, too, we find a good many
drawbacks which seem sufficient
to hold down these SpaSmodic up
Nard moves.
The utilities as q group are
rather weak, and the passing Of
Its dividend by the Columbia Gas
b Electric Company was jolt.
especially as the president ex-
planned this as being due to in
ereaSed costs and reduced rates.
The rails as group are mostly
backward. While the early move
ment of winter wheat, which has
caused an unusually large Jump
IN the visible supply for this time
Of year, has helped the carload
ingS of some, the total wheat crop
promises to be the smallest in 40
years. Total carloadingS last
week will probably be little be-
low q year ago. Then there are
the new pension bill and higher
wages for railway labor.
The coppers face the threat OF
a decline in copper prices, which
were marked up artificially under
the code. The foreign demand
has been weak, and foreign mar
kets lower.
The motion pictures have to
deal not only with summer dull
ness, but also with the movement
to purify films.
The steel industry, after slump
ing with extraordinary sharpness
from the artificial June peak, has
hardly made the usual seasonal
gain from the Fourth OF July
week. Operations are the lowest
for this season since 1882.
Factory employment apparently
Haclined more than SeaSonally In
June, and labor unrest Is wide
snread. Present indications are
that labor is not disposed to CO.
operate in the building program
loy taking reduced wages.
Finally, the collapse OF New
Deal price-fixing arrangements IS
s1nsettling in those trades which
had depended upon them to main
kain markets.
! But. while no large or sus-
;ained rise Is thus probable, II
Eenains true that the market has
%nnarently established firm bot
Eorn. Those who hold stocks 90
not sell on weakness.
certainly those who have Sc
iected stocks as a hedge against
5nflation have no reason to aoan-
Hon their positions. Sc n a OF
Thomas's blast to Banker Har.
Tison shows that the lntlatlonlsCS
Are on the job. The Comm1ttee
I'm the Nation-or whatever tney
scall themselves-iS agitatlng 1or
",rther devaluation. The Govern
nent is printing up greatly over
valued silver certificates. :,
It can be said that the market
Ihows more volume on the rise
fhan on the decline. It seems 10
FOLLOW that if it is trying to go
anywhere, it is trying to go up.
am inclined to think. there
fore. that as long as there Is SO
great a prospect Of initiation ana
artificial stimulation Of business
:bv New Deal tactics, the stock
market is likely to edge upward
in anticipation.
For the present, one may well
OOnfine purchases to the periods
of 6lips and dullnesS which seem
: sure to recur for some time yet.
In doing 80, the more reason
3: ablv priced ''induStrials'' (Such
as chemicals and dairy prod
ucts) merchandising issues, and
precious metals (gOld and sill
ver), should continue to be
favored when backed by good
earnings,
It is well to remember that in
:flation taken alone cannot logi-
:cally help a stock which has no