Evening star., 1935-09-29
WAR FEARS EXERT
BIG INFLUENCE ON
SECURITY TRENDS
Both Markets and Business
Extremely Cautious in
Critical Period.
TRADE LEADERS BELIEVE
DEPRESSION Is OVER
slackening in Recovery Progress
Held Temporary-Employment
Continues to Mount.
BY CHARLES F. SPEARE.
gnarial Dispatch to The Star.

BY CHARLES F. SPEARE.
Special Dispatch to The Star.
NEW YORK. September 28.-The
movements in securities this week
have hinged on the political devel-
opment abroad.
AS the tension eased in the rela-
tions between Great Britain and Italy.
after unsettling the markets OF the
week previous, traders plucked up
courage and repurchased some of the
stocks sold when war between two
great European powers was threat
ened. Likewise bonds became firmer.
Pressure was lifted from the United
States Treasury group.
Underwriters again sought the sup
port of the investing public for their
offerings of high-grade and low
coupon public utility refunding issues,
and with fair amount of success.
Commodities that are susceptible to
rumors of war quieted down, with
quotations primarily affected by the
normally controlling factor Of supply
and demand. This was the COM
plexion of the market until Thurs
day, when the Council of the League
of Nations made its momentous an
nouncement.
In some directions the reaction in
securities and the uncertainty as to
what might come Of the negotiations
at Geneva have produced lull in the
business world. This is no more sur
prising, in view of the steady and
rapid advance that had taken place
since July, than the fact that stocks
should have reacted after six-month
appreciation amounting to 40 per cent
in the averages.
Some indicators Higher.
The degree of industrial decline and
of tapering OF in merchandise dis
tribution Is, however, slight. In the
iron and steel trade it is represented
by q ratio Of Sta per cent Of pro-
duction to capacity. against 50 per
cent the week previous. On the other
hand, the output of electric power is
reported as the second highest on
record and 1871 per cent more than
for the same period Of 1884. Railroad
car loadings are about 10 per cent
greater than In September last year.
Bank clearings show 20 per cent
expansion over the figures of the
comparative 1884 period. In six man
ufacturing centers, Philadelphia, Buff
falo. Pittsburgh, Cleveland, Cincinnati
and Detroit, the average gain was
over 81 per cent; in the marketing
centers of Minneapolis, Kansas City
and Omaha, IS per cent: in the coast
cities Of San Francisco, Seattle and
Portland, 80 per cent, and in Rich
mond, Atlanta and New Orleans it
averaged 10 per cent above 1884.
Recovery has slowed down a bit,
but 1t will proceed again at an active
pace. Testimony to this effect is
available In many quarters. The gen.
eral sentiment of business men seems
to be that the depression is over.
They are making their future COM
mitments on this premise. So con-
servative group as the Advisory
Council Of the Federal Reserve Board
went on record this week to the
effect that business conditions today
were the brightest since 1929. Donald
Richberg, former head Of the N. r. A.,
states that I'VE are in a tide of
improving business" and Joseph p.
Kennedy, who has just retired as
chief of the Securities and Exchange
Commission, declares that the rise
in securities Is mainly due to the
state Of business.
Pay Rolls Are Expanded.
Naturally, employment has enjoyed
the benefits Of higher business index.
In August, so the Secretary of Labor
reports, there was a gain of 10000
in the number of workers in private
industry and an expansion in pay
rolls of ST. per cent. This brings
the total Of the unemployed below
10,000,0 900 for the first time this year.
Still, the figure is so high that it
constitutes the greatest and the most
stubborn problem with which the ad-
has to deal.
The unknown quantity in the busi-
ness outlook Is the foreign situation.
If the crisis should become more
acute it would mean a temporary
arrangement both of domestic in
dustry and of American markets for
securities. For this reason there is
at present a mood of caution and
another curtailment of speculative
contracts, for it would be brave
operator who would commit himself
to engagements at one of the most
critical moments in European history.
The currency crisis which has de-
veloped again in Holland suggests
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