The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1935-02-11

dLlu I'll 4Qdy 1dAAJ Woo OAANAN VIVA
ing on the eve of a possible
Supreme Court decision in the
gold cases. This was aided by an
announcement from Washington
that the Government is prepared
to meet any emergency which
might result from an "adverse"
decision. CThe "chaos" which
the Government contended would
inevitably follow such a decision
can, it now seems, easily have
the curse remoVed0
Looked at in one way, it can
be argued that the market is
merely swinging uncertainty pend
ing the decision, and rejecting
minor technical conditions in
trading.
From this point of view, traders
Just bet on another little hazard,
and those bullishly inclined argue
that lack of selling pressure" and
"dullnesS on reactions" are favor
able symptoms. Such points as a
favorable weekly swing in car
loadings and bulge in "the rails"
are emphasized. "Once the deci'
sion is out, all will be we'll"
But 1t may also be argued that
more fundamental issues are in
volved, and that this gOld-clause
decision epitOmizeS the whole
New Deal situation. 1t put the
New Dealers on the spot. Their
monetary policies are an essen
tial part of their spending
policies. Their whole idealiStic
scheme of social planning" and
reform" involves a disregard
for cost. But they can disre-
gard cost only as long as they
count upon robbing citizens who
have money by those age-Old
methods Of kings and pOtentates,
namely, coin clipping and cur
rency debaSement.
A clear cut adverse" decision
would call their hand. 1t would
either Cd force return to real
tStic counting of costs and honest
finance, or 20 drive the Admins
tFation to a more open avowal of
initiation and financial manipula-
ton. (This latter is probably what
they mean by saying that they are
prepared to meet any emergency
A favorable" decision would be
hailed as approaching lax con-
Struction of the constitutional
rights of property and contract,
and clearing the way for un-
limited Government spending Of
"other peoples money"
With or without regard to the
pending decision, it does not seem
reasonably safe to buy most
stocks. Very few that are good
can be called cheap. But would
maintain carefully selected posi-
lions in the smaller and less
prominent companies of proven
earning ability, such as foods,
electrical appliances, and building
materials, as well as highest-grade
gold mines.
The present position may be
indicated by q few technical
comments on individual stocks,
for example, American Can has
plainly been checked at little
over lis. It would probably be
supported at liz, but the gap"
left at ITO may yet prove to
have been an exhaustion gap,"
and the 112-115 turn to have
been a distribution area.
Du Point appears to be lodged
in trading range between 92A
and 95h, with no downward
tendency manifest.
Despite increased steel produc-
ton, United States Steel holds in
a trading range of 34h@36R,
and So seems to be a sort of
critical level.
American Telephone top levels
drift lower, though the stocks
continue to be supported at 1903.
Skillful distribution by insiders
would possibly explain. But Con-
solidated Gas does not seem to
want to stay under 10.
Atchison is trying to hold at
44@45, but shows no definite in.
dications of underlying strength
or tendency to take a rising
trend. Having closed the gap"
left at 100, Union Pacific's action
suggests good chances of being
bought cheaper.