Evening star., 1934-11-18
Spirit of Harmony Develops
in Commercial and Fnan-
CiaI Circles.
CONFi0EHcE is RISING
AS ELECTION RESULT
Trend Toward Sterilization of
Currencies and More Cautious
Government Spending.
Special Dispatch to The Star.
BY CHARLES F. SPEARE.

BY CHARLES F. SPEARE.
NEW YORK, November II IN. A.
N. Alt would be difficult to point
to specific item of business improve
ment since the election. The time has
been too short to expect it. 1t is GER
tain, however, that there is a new
spirit of willingness, both in Wash
ington and throughout commercial
and financial circles, TO work harmo-
niously for recovery.
Confidence is steadily rising. The
country has accepted the election as
proof that a majority of the people
believe in the policies of the Roose-
welt administration and have taken
the stand that it Is better business
sense to follow than to oppose them.
BY lifting the ban on exports of
capital and terminating the loaning
period of the Home Owners Loan
Corporation, evidence has been given
of trend toward stabiliZation of cur
rencies, as well as of more cautious
government spending. Added to this
is the intimation in President Roose-
velt's address to the Advisory Council
on Economic Security that there is to
be modification of his social pro-
gram. This may be interpreted to
mean that recovery will take prece-
dence over reform.
Conflicting Views Adjusted.
Recovery has been retarded by po-
litical and economic conflicts between
those who lend money, who produce
and distribute goods and employ la
Dor. and that other group which today
assumes to direct business to the route
which it thinks business should follow.
Gradually the points of view of these
opposing forces are beginning to
merge. The first gain in this direc-
tlon was in the cooperative spirit
enunciated at the bankers convention
in Washington last month. To this
assembly the new philosophy stated
by Jackson Reynolds was a surprise
and shock. Its reaction to it was
unfavorable. Not over 25 per cent of
the bankers Immediately agreed with
1t. Today 1t has the support of two
thirds Of the leading bankers of the
country. They have capitulated to
the sound sense of it.
At the same time the bankers have
discovered that they were worrying
too much over probable imitation and
the complexion of the new Congress.
This has been described as more prod
igal than radical. The popular con-
ception of these terms is, possibly,
that they are too much alike in their
implications to give assurance of a
turn to the right. The Federal spend
ing program is to be continued, but
with more discrimination and less per-
manent liability for it.
The month of September registered
the low point of business of the year,
and though this is not the season
when expansion normally occurs, 1t
is anticipated that the halt in the
decline indicated in October will have
its sequel in quiet but definite up
lift through the holiday period Ex-
cept for silver, which has sold this
week at the highest price since 1929,
the change in the commodity average
is slight. The iron and steel trade
has been making a moderate increase
from time to time. but operations are
still improbable and will be for the
December quarter.
Railroad Bonds Slump.
There is great need for more rail-
road traffic to maintain the financial
standing of many of the carriers that
managed to cover their fixed charges
in 1888 and had a promising outlook
in the first half of 1884. The bonds
of several now solvent have been
quoted this week at 20 cents on
the dollar or less. They have been
going down while defaulted South
American issues have been going up.
Rail bonds were made legal for
investment by generous interpreta-
ton of future earning power; default
ed foreign bonds are outlawed by
congressional decree. Tradition, in
experience and an easy conscience
have determined investment to such
an extent that an institution or q
trustee In New York State formerly
could purchase Frisco Railroad third
mortgage bond. but not an obligation
of the Canadian Government or the
paper of the Standard Oil Co. of New
Jersey, to cite typical exceptions. If,
when Senator Hiram johnson made
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