The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1935-03-29
STOCK MARKET
TONE IS FIRM
Entire List Is Unsettled
But Optimism Rules as
Session Ends
By MAX BUCKINGHAM
United Press Financial Writer

\SOoyTtSnt, lSOO, Ohittd 1887
NEW YORK, March 20. (UP).
The stock market last night gave
promise of better performance de-
suite the fresh obstacle brought
about by intention of the Chicago,
Milwaukee, st. Paul and Pacific to
reorganize.
In fact, announcement of the
reorganization plan revealed the
stock markets strong undertore
as selling of rails after the an
nOuncement only momentarily dis
rupted an upward trend. Dow
ones Industrial and Utility aver
ages were higher at the close yes
terday than they were Wednesday.
Two major unnerving factors
developed yesterday:
/. Closing of Bourses in Bel
GUM, which to many indicated a
government intention of devalu-
ing the belga soon. Belgium felt
the same way, as there was fran
tic search for places to invest
money as devaluation hedge.
Devaluation will bring further un-
certainty as to ability of France,
Holland, and Switzerland to cling
to the gold standard and will bring
more nervousness in foreign ex-
change. The belga broke more
than 100 points here.
2. Plan of the "Milwaukee" to
go through another Teorganiza-
ton. Some such development had
been expected. But the announce
ment indicated to many that the
governments lending agency-the
Reconstruction Finance Corpora
tion-is willing TO see railroads re-
organize in an attempt to straight
en- out their huge financial tangleS.
These were serious uncertainties
to the market. The latter brought
fairly heavy selling in railroad
shares which unsettled the entire
stock list. But the will of the OPP
timists. who for days have claimed
the market is Just about ready to
step forward . catch up with
business, prevailed and the closing
tone was anything but unfavor-
able. -
In fact some felt that announce
ment of the st. Paul plan would
eliminate one of the market I'm
certainties for there have been
many rumors-some of which un-
settled the stock list-recently
about the road.
While. there was no indication
of a renewed urge to buy stocks,
there was definitely better feel
ing in Wall Street. Many business
and banking leaders believe that
the worst of. the depression is at
an end and that forward strides
for business are due. These views
contrasted with the remarks of
Charles M. Schwab, venerable
chairman of the Bethlehem Steel
Corporation and longtime opti,
mist, who upon returning from a
holiday in France, said:
"From all can hear conditions
are bad in New York City. If the
stock exchange figures have any
bearing, it would seem that bust
ness all over the country is at a
standstill."
Business factors to support the
contention that conditions are i'm
proving are not especially clear
cut. Included among the items
are:
Railroad carloadings to be an
nounced today likely will be the
best total since November 8, but
February and January operations
of class l roads likely will show a
loss of around $40,000,000.
Retail buying compares unfa-
vorably with last year, inasmuch
as Easter was early. but there are
expectations this years Easter
trade will be better than last.
There was a pickup in struc-
tural steel bookings in February
and steel consumption is reported
improving, with possibility of a
cessation in the recent loss in pro-
duction rates.
Utilities problems appear lit
tie brighter, especially after the
New York state senate defeated
an amendment which would have
given the city of New York per-
mission to build a municipal pow
er plant to provide power for city
......