Evening star., 1935-06-30
STOCKS NEAR PEAK
LEvELSAT START
Of SECOND HALF.
Idle Credit and Confusing
Political Developments
Dominate Market.
INVESTORS KEPT BUSY
APPRAISING NEW DEAL
Trade Remains Minor influence.
Imitation Threat Ignored for
Time at Least.
BY GEORGE T. HUGHES.

Special Dispatch to The Star.
NEW YORK, June 29.-Entering
the second half Of the year at ap-
proximately the high point. the stock
market remains subject to the two
influences which have been domi-
nant since the 1st Of January. These
are. first, the great excess OF credit.
and. second, the confusing series OF
developments in Washington.
The money factor has worked con-
sistently to support the market and
will doubtless continue to do so in
the next six months. so far as any one
can see now but what happens IN the
National Capital sometimes makes for
higher prices and sometimes, more
often, perhaps, for lower.
Never before, in recent years at any
rate, has politics played so large
part In determining the course OF
speculation and investment. There Is
no sign now that this force will dis
appear. Congress will have to remain
in session until the tax bill Is drawn
I'D. debated and passed, which will
take the major part Of the Summer.
Even after adjournment. the Execu-
tive Department can supply enough
surprises. judging by the record OF
the past, to keep the market busy in
appraising them.
There is. therefore. no reason to BE-
lieve that the next six months will be
much different from the preceding
half year so far as the main infiu-
ences are concerned.
Trade Out Of Picture.
It is true that this leaves out the
business picture. 1t is conceivable
that industrial revival will be 50 pro-
nounced during the balance OF this
year as to supersede the other two
factors now controlling the market, but
there Is no sign Of it yet.
There has been business revival, and
the writer is Of the opinion there will
be very much more, but it Is scat
tered and hesitant and has not exer-
cised the same effect on security prices
as have other things.
1t also omits the threat Of imitation.
which played so large part in the
market of the two preceding years.
Imitation fears are not so pronounced
at present, nor are they credited with
much influence on prices. This has
not been an imitation market, unless
one chooses to define excess credit as
inflationary.
It has not been an imitation market
in the sense that there have been
violent advances in commodities or
any disposition on the part of capital
to exchange cash for goods or stocks
just because of fear of depreciation
of the dollar. In this respect condi-
tions may also change, although there
are no indications Of 1t now.
U. S. Control Accepted.
The market is now fully subject to
control by the Federal Government,
represented by the Securities and Ex-
change Commission. The experiment
has worked out far better than any
one had expected when the law was
enacted. 1t Is true that its consti-
tutionality Is to be called In question,
but not on the initiative Of the Stock
Exchange nor any member thereof
The statute has been administered
with intelligence and sympathy by its
present head, and opposition to it has
largely disappeared.
The only untoward effect has been
the drop in volume of stock trading,
and that is partly explainable on 9TH
er grounds. Stock Exchange seats
are rising in price again and sold at
the high of the year only q few days
ago. In general, the financial district
accepts Government control with
complacence.
(Ccpyrieh-. 1888. by the North American
Newspaper Alliance, Inc)