Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-04-14
Shock of European Events
Fades as Traders Scan
Cheerful Signs.
u. S. SPENDING MARKED
AS POWERFUL FACTOR
Silver Price Rise Is Regarded
as Compromise to Stave Of
"Greenback" Bonus.
BY J. G. DONLEY.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, April Is (N,A.N.A).-
The financial district is acquiring
more receptive ear for constructive
news and comment. 1t might even
be said that it is looking on the
brighter side of things.
AS a result of this greater opti-
mism, the shock of Hitler's threat
ening attitude and the sudden col
lapse and devaluation of the Belgian
belga seem longer ago and farther
away, as affecting the United States,
than is actually the case.
The real crises in European peace
and the fate of the remaining gold
adherents now seem likely to be de-
layed, and hence have lost what i'm
mediate influence they held for the
financial markets. But forward Of
ferings Of threatened currencies re-
main at heavy discounts, while in
attempts to check the outward gold
flow the Bank Of the Netherlands has
followed up last weeks boost in the
discount rate with another advance
Of l per cent to AZ per cent. The
belief is growing that sooner or later
and the sooner the better-all this
will lead to some serious steps toward
sterilization.
Meanwhile, Congress is making a
broad move to take the profits out
Of war" While that Is not calcu-
lated to make an important dent in
the fundamental causes Of war. it
would seem to make war less objec-
tionable to critics of the profit motive.
1t might even be said to make war
safe for democracy" were it not that
the set-up to accomplish the end of
outlawing possible war profits looks
suspiciously like military oligarchy.
Hope in Pump Printing"
OF more immediate importance to
business and the markets were the
final action on the S4,880, 600 900
work-relief measure and the Presi-
dents proclamation raising the price
Of newly mined silver to II cents an
ounce, as against the 64l2 cents in
effect since December 81, 1888.
The hopes of business. so far as
they center in the prodigiously ex-
banded pump printing" were well
expressed by r. B. White, president
of Western Union. who said at the
annual stockholders meeting, Il can
not help feeling that the large appro-
prlations made by the Government to
restore more prosperous conditions will
react favorably to business" The only
a %
extent of the benefits, how quickly
they may be felt and whether the
ultimate result will be to give the i'm
petus required to carry on after Gov
eminent aid is ended.
1t seems hardly safe to put too
much credence in enthusiastic reports
that the program will get under way
without much delay. A great deal of
time will be required to start projects
going, with the exception of those al
ready awaiting the release Of funds.
and appreciation of this fact will pre-
vent future disappointment. If the
peak of expenditures is reached by
the the end of this year, it will indi-
cate remarkable efficiency, and the
chances would seem to be that the
larger benefits will not be felt before
1886.
Many attempts have been made to
state the work relief sum in compre-
hensible terms One which is both
and somewhat alarming,
because it recalls to mind pictures
which came out Of Germany in the
more hectic inflationary days, states
that I'm $1,000 bills the money in
volved would fill nine bushel baskets"
Effects of Silver's Rise.
Wall Street regards the silver price
rise as the lesser of two evils, since 1t
is viewed as a compromise to stave OH
the "greenback" bonus. 1t is hailed
by the inflationists, but inflationary
results remain in doubt. There has
been a rise Of about $210,000,000 In
the volume of silver coin and certif1-
Gates in circulation during the last
year of silver buying. But the Treas
ury figures as of March 81 reveal net
increase in money circulation OF
slightly less than 100000 900, so that
something more than half of the sill
yer money merely replaced other cir
culation media.
The importance Of the rise to
American mining companies is not
great. but silver miners may find more
encouragement in hope that the up
ward thrust will be continued. Newly
mined silver has been coming to the
Treasury at the rate of about 1000 900
ounces q month. The advance of SIS
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