Evening star., 1936-10-25
CAUTION MARKS
CKTRAD|NGAS
ELECTION NEARS
Average Changes Slight
Due to Strength of
Motors, SpeciaIties.
HOLIDAY SALES RECORD
EXPECTED BY RETAILERS
Final Quarters Earnings to Equal
if Not Exceed Total for
Previous Period.
BY CHARLES F. SPEARE.
Specia, Dispatch to The Star.

BY CHARLES +. SfEAhE.
Speciai Dispatch to The Star.
NEW YORK, October 24.-With the
election little more than a week on,
there is a natural tendency among
dealers in speculative securities and
in commodities to proceed cautiously.
This has been evident at times dur
ing the last few days, when the stock
market has wavered slightly and is
sues long popular and quoted at high
prices after a prolonged rise, have
been abandoned for others not re-
Gently exploited. However, the aver
age changes have been slight in pro-
portion to the trend of the market
during the first half of October, due
to the strength Of motor and spe-
cialty stocks.
On business. the approaching elec-
ton has made little impression in
the way of production volume or con-
sumer demand. There persists the
belief that conditions after November
3 will be little different in industry
and in retail trade from those pre-
vailing since the Autumn season
opened.
Holiday Rush Expected.
Expectation Of a record holiday
turnover by merchants seems to be
general throughout the country.
On the side of corporation profits,
the present indications are that the
December quarter will equal, if not
exceed, that of the three months
ended September 30 And to this
may be added the probability that. in
order to Offset the effect of the cor
poration tax. concerns able to do so
will distribute to their shareholders
extra dividends in cash or in securi-
ties. This has been one of the mo-
tives behind this weeks srise in the
stocks of the oil producing and re-
f1ning companies.
Some light on corporation profits
and on the rise in personal incomes
Is given in the figures Just published
Of income tax payments in the first
quarter Of the fiscal year. For this
period, they were about $T7,000, 900
over the same quarter In 1885, an In
crease of 80 per cent. Corporation
taxes gained $42,000,000, or 26 per
cent, and individual income taxes,
$34,4SS, 900, or 28 per cent.
The foreign exchange situation has
quieted. There are. however, political
repercussions among those who regard
the foreign policy of the administra-
ton, as expressed in stabilization Of
the currencies and the Hull treaties,
as Of greater moment to the country
than the financial methods which
they previously had denounced.
Prosperity a Political Factor.
Early In the year, it was this
writer's belief that the effect of q
rising cost Of living would be more
of a factor In the presidential CAM
paign than the degree bf recovery
then apparent. Subsequent trends do
not support this Judgment.
For the spread Of prosperity, the re-
employment, the rise in values of Sc
curities and real estate, and the mod
crate increase in food costs, rents,
fuel and clothing, in proportion to the
increase of wages during the last nine
months, make the tangible evidences
of material well being Of a large SEC
tion of the American public one Of
the strongest arguments available to
the administration. Naturally, these
have been emphasized on every pos
sible occasion.
The purchasing power of wages is
today higher than in 1929, though
that year marked the height of twen-
tieth century prosperity. It is true
that certain food items have advanced
sharply and will go still higher.
Meat. for instance, is expected to
reflect the drought of last Summer;
dairy products also. In general way.
however, the cost of living has not
been the critical problem for the wage
Garner that it appeared to be at the
beginning of 1886.
It may be more so six months hence,
as the retail price index has begun
to advance.
But on October 10 the commodity
price index Of the Department of
Labor was only slightly above that
of the year previous. At 81.2, it COM
pared with TIL three years ago.
In England, the commodity price
index is reported this week at the
highest since gold payments were sus-
pended. In France, there has been
a sharp rise following devaluation.
Prices also are advancing in Ger
many.
copyright. 1896. by the North American
Newspaper Alliance Incl