The Washington times., 1935-02-18


md the quest Lewis Haney
for "hquidity." Such stocks rose
on Thursday and Friday, while
utilities were liquidated-includ.
ing some former utility blue chips
which the New Deal has made
very blue indeed.
Among the dozen most active
stocks last week were five utilities,
all lower, and some touching rec
ord lows. There were four motors,
two Of which are on their last
legs and selling for pennies, while
the other two gained 1s-A al
though they are the leaders in
supposed great motor boom Eek
clamation point). Other leaders"
were an inSolvent department
store system and whisky stock.
There have been two big jumps
in the stock market since the
alleged bottom of the depression
in July, 1882. One was the result
of the mythical Lausanne settle
ment" and Hoover open.market
operations of 1882. The other
followed the debasement and re-
pudiation which ushered in the
Roosevelt regime, and was in
anticipation of currency initiation.
The second upsurge was re-
Vived and extended in early 1894
by Roosevelt's gold and silver
speculation and the CWA doles.
Now here we are. The market
and industrial activity are just
about where they were in June,
1933-nearly two years ago.
Taxes are higher. The public
debt is higher. There is more
unemployment and "relief." But
are We any better off than in
1892?
Usually the expanding phase
Of business cycle lasts about
two or two and q half years.
IL this is recovery" that we
have been having, are we near
ing the peak of it? Are we APP
preaching the top of the ROOse-
welt cycle? I don't know. No
one knows. But ask, where are
the confidence and cOOpera-
ton" Of last November and De-
cember? What does It mean
that our Government is spend
ing almost its entire time on
such matters as giving relief to
unemployed citizens, and devils
ing new ways to 60 into debt?
Is this the road to prosperity?
Certainly the stock market is
not saying so. For ten weeks now
a five-week moving average" Of
the market has not varied by one
point. It is hung up, ostensibly
because Of the pending gold clause
decision, but really because we are
nearing a turning point in Ma
tional policy-the decision between
I(D trying to maintain solvency
and economic principles, or "a
abandoning all pretense to sound
ness, and plunging irrevocably into
the bog of debt and paper money.
The people of the country must
soon Cd either revolt against the
New Deal leadership, and return
to coInmon-Sense standards Of hon
esty, values, and costs, 90 or they
must go on to the wildness Of some
new deal.
At the moment, all sober and
thrifty Americans should quit try
ing to defend their savings by buy
ing more stocks. Instead, they
should send millions of protests
to Congress. Let your represen-
tatives know that you want them
to quit spending your money, run
ming your Government into debt,
debasing your currency, and max
ing it impossible for employers to
employ or investors to invest.
If we are to return to economic
decency, profitable production,
and earned incomes, it will be nee
esSary to undergo further della
ton. In that event, a good many
stocks would sell off pending the
reimbursement and real recovery.
If we are to borrow ourselves
out of debt, substitute govern
ment fiat for a money standard,
and government work relief"
for business, some stocks will
have q Spurt-but which ones?
How long?
Better wait a while. There Is
too much danger Of initiation to
warrant investment based on
values. There is too much danger
Of sOcialistic government con-
troll to warrant speculation based
on profits.