Evening star., 1934-06-02
BUSINESS AWAITS
CLEARER OUTLOOK
May Is Period of Economic
"Stock Taking" States
Bankers Review.
BY EDWARD C. STONE.

economic stock taking in the opm-
ion of the American Bankers Asso-
citation, presented in its latest re-
view of business conditions in the
United States. The summary Is not
overcrowded with sunshine. to put It
mildly.
Many of the trends which were
clearly defined earlier in the year,
and especially so in April, reached
point in May where business ap-
peared disposed to await definite as
surances regarding the business out
look before attempting to enter a
more stable forward movement, the
report says.
The situation has also been visibly
affected" states the association. al
most from day to day by politico-
economic developments. Uncertainty
as to the future of the N. R. A. and
its effect on prices has been def
mite retarding factor in industry; an
increasing number of strikes and
threats of more strikes and labor
difficulties in the automobile and al
lied industries; the protracted down.
ward trend of the stock markets; re-
newed threats of important silver
legislation or other forms of inflation
weakness of farm product prices only
modified by threat of a crop failure
more disastrous than low prices; Slow
ness of progress in the public works
program and uncertainty of its effect
on business; buyers resistance to high
prices; above all, Congress and the
uncertainty of what it will do before
adjournment; all these give ample
explanation of the increasing spirit Of
hesitancy"
Gas President Two Years.
Marcy L. Sperry completes two
years as president of the Washington
Gas Light Co. today The prominent
public utilities operating engineer was
elected to succeed George A. G. Wood
on June g. 1882.
Although not a native of Washing
ton, Mr.. Sperry attended the Force
School and was graduated from Cen
tral High School in 1892. He was
born in Annapolis, the son OF Rear
Admiral Charles S. Sperry, U. S. N.
Mr. Sperry came to the washington
Gas Light Co. from the Fall River
Gas Works Co., Fall River, Mass,
where he was vice president in charge
of operations. He began his career in
public utilities work shortly after
graduation from the Massachusetts,
Institute of Technology, his first posi-
ton being with Stone g. Webster IN
Savannah, Ga.
Afterward he became manager OF
the Ponce Electric Co., in Ponce,
Puerto Rico From there he went to
MINNEAPOLIS to supervise the con-
struction and operating organization
of the Minneapolis General Electric
Co.. later returning to Savannah to
manage the Savannah Electric Co.
Years afterward he went to Boston.
where he had supervision of a num-
ber of gas and electric light COM
panies.
Under his guidance the Washing
ton Gas Co. has made steady and
substantial progress.
Varied Ideas on Outlook.
A great variety of ideas on the
near future course of the stock mar
ket are heard in brokerage offices
here. Some brokers look for mod
est advance after the adjournment OF
Congress.
Other brokers here can see no rea-
son for any real upward movement
at present. But stocks are not likely
to 20 much lower, either, these OBJ
servers say. The market is already
thoroughly liquidated, which means
that the possibility of any open break
at this time is remote.
Many New York brokers speak
about the possibility of at least some
upward move before long. To those
who predict early activity comes the
reply that the so-called summer
lull" is very near at hand. Too MANY
big traders are away from their Of
fees. making buying waves rather
improbable.
After listening to the conversation
In the broker houses, the nvester or
trader can take his choice. There
are plenty of views to ponder over.
Time will tell what is going to hap
pen this Summer, and soon, too.
Over the long pull more brokers take
the upside, expecting an increased
volume of trading and an advance
in prices.
Ruling on Wage Reductions.
An Interpretation of the stock ex-
change code whereby reductions in
wages could be effectuated under
article CE) has been made by
N. R. A.
The article provides that the
wages of employees being paid on Sep
tember /, 1888, in excess of the es-
tablished minimum shall not be de-
creased notwithstanding that the
hours worked in such employment
may be hereby reduced.
In a letter to the code authority,
N R. A. held that a reduction in
wages of non-exempted employees
under the code is thus prohibited only
where hours are reduced and that
exchange firms may reduce wages II
"other justifiable causes exist for such
action" However, N. r. A. officials
pointed out that in no event can
wages be reduced below the minimum
of from $12 to S16 weekly as provided
in the code.
This is a matter of intense concern
to Washington brokers, as well as to
brokerage firms all over the United
States. Every effort has has been
made in Washington offices to prevent
any reductions in personnel. The
situation is very delicate and an early
increase in the volume of trading on
the New York Stock Exchange and
other boards is imperative.
Most Savings Are Protected.
Mutual savings banks of the coun-
try, because of the limitation on
amounts which they may accept in
the form of deposits, show the largest
insurance coverage of any banks in
the Federal Deposit Insurance Cor
poration. On the latest available
figures. at least 10 per cent of the
deposit liabilities of the 235 mutual
banks in the corporation were pro-
tected under the temporary plan of
Federal insurance. Less than half
of the mutual savings banks in the
country, however. are members of the
insurance corporation.
The second largest coverage was