Evening star. [volume] (Washington, D.C.) 1854-1972, 1934-06-10
Equities Register Largest
Weekly Gains Since Last
January.
WALL STREET RELIEVED
CONTROL FIGHT Is OVER
Prices Also Appear to Reflect
Sold.0ut Market and Hopes
for Labor Peace.
BY CLAUDE A. JAEGER,
Associated Press Financial Editor.

hGoONldCCN EACco AlldANldl GuItOIs
NEW YORK, June 9.-The stock
market came out of its stupor this
week to record the widest gains for
any week since January.
Progress in other markets was less
striking. Wheat fluctuated erratically,
and ended the period virtually I'M
changed from a week earlier. Cotton
futures advanced $3.50 to S1.6O a bale.
The result of the weeks trading in
corn was net loss of around a cent
bushel. In securities, corporate
bonds were firm, as stocks went up,
but gains were modest.
News of a decisive character as a
stock market influence was lacing.
and the rise in prices seemed to re-
fleet a completely sold out market.
together with feeling of relief that
the Federal Stock Exchange control
legislation was finally enacted, and
uncertainty ended. Also, it was hoped
that rains in the drought area, though
tardy, had somewhat mitigated the
situation there; and hopes that the
labor controversy in nle steel indus
try would be settled peacefully height
ened toward the close Of the week.
Averages Up Sharply.
The share market, as measured by
the Standard Statistics Co. price
average of 80 representative issues,
in this one week regained approx
mately third of the loss from the
high Of February to the 1884 low
recorded a week ago. The average
rose Z points to 812. Trading was
not in large volume at any time. but
1t expanded substantially after record
ing new record for dizziness for the
past decade on Monday. The turn
over in the Stock Exchange for the
week was 4.542 $50 shares, against
2.466,421 in the previous week. which
included the Memorial day holiday.
The Treasury managed to pull a
few surprises in the announcement of
its s8o0,o00,00 financing for June Is.
It was smaller than anticipated. and
coupon rates little lower, and there
was no exchange cffer for the Liberties
called as of next October IS. The
offering was seven times oversub-
scribed. and dealers acknowledged
that the Treasury had shown con-
siderable acumen in managing its
financing so as to keep the cost of
borrowing very cheap.
Corporate bonds had not declined
as much as stocks, and rallied less
vigorously. but the Standard Stats
tics Co. price average of so issues
gained OF of point, closing at 86.2,
or only 1.9 under the recovery top.
Trading in all bonds in the Stock
Exchange aggregated SOS, Isl 900 par
value, against s44 $50 900 last week
Appointments Important.
Wall Street was none too happy
over the final form of the securities
exchange act, as signed by President
Roosevelt this week. but brokers
widely acknowledged that it was not
as bad as it might have been" The
margin requirements, in particular.
were found to be not particularly de-
fationary. The provision that loans
may be made on securities up to 100
per cent of the lowest price since last
July I, provided this is not more than
rs per cent of the market price, was
found to permit margins somewhat
more liberal than many stock ex-
change houses are currently requir-
ing. In view of the wide discretion
airy powers to be given the admins
tering commission. Wall Street was
keenly interested in its probable per-
sonnet.
Amendments to the securities act
were received as distinctly construc-
tive. although the complaint In in
vestment banking quarters was al
most universal that they did not go
far enough. Nevertheless, it was felt
that moderate amount Of financing
would slowly develop. The new
bankruptcy law, just signed by the
President, was also viewed hopefully,
as likely to expedite numerous re-
organizations that might have hung
fire for years.
Trade News Mixed.
Business news remained mixed.
Steel production quickened again, but
commentators disagreed as to how
much this reflected real consumption
demand and how much it meant that
buyers were stocking up for protec.
ton against strike, or rising prices.
Foreign exchanges attracted con-
siderable attention, with the German
mark breaking sharply, and the
pound sterling falling to the lowest
level in relation to the dollar since
February, and. the lowest in relation
to the French franc since the pound
left the gold standard. American
bankers returning from Germany de-
scribed the situation in that country
as decidedly critical, with gold vir-
tually gone and the trade balance
still unfavorable. Retaliation Of the
mark was predicted.
EEPTU lied MEN GATHER