Evening star., 1936-06-07
TRADERS DISPLAY
CAUT|ONONEvEOF
PARTY CONCLAvES
Issues Concern Business
More Than Any of Last
Forty Years.
SPENDING AND RELIEF
HOLD MOST ATTENTION
Markets Affected by Uncertainty,
but Trade Index Stands
Near Years Peak.
BY CHARLES r. SPEARE.
Srecial Dispatch to The Star

BY CHARLES r. SPEARE.
Srecial Dispatch to The Star
NEW YORK, June 6.-On the eve
of the national conventions, whose
platforms will concern Wall street
and the business elements Of the
country more than any in the last
40 years, there has been disposition
to proceed cautiously in market
operations,
On the other hand, there is little
suggestion in mercantile or industrial
circles Of deferring commitments.
The business index of production
stands up at about the best of the
year.
Retail trade shows phenomenal
gains in many sections Of the United
States. The re-employed in April
numbered 726,000 laborers, of whom
third found work on the farms.
Corporations in the first five months
Of 1886 declared 7S0 favorable divi-
dends as against 470 in the previous
year and June is already giving evi-
dence Of increasing profits for busi-
ness.
Foreign Situation Watched.
The delicate political and credit
situations abroad, especially IN the
approach to some radical measure of
currency adjustment in France, which
would compel Holland and Switzer-
land to follow suit, are having their
effect in restraining speculation in
securities also. 1t is significant,
however, that they did not discourage
investment in the new Treasury loan.
The platforms of the two major po-
litical parties, to be presented this
month, will be Of more direct concern
to Wall Street and to the important
banking and corporation interests of
the country than any framed within
the present generation.
The election campaign to follow will
concentrate on the protests of one fac
ton against the strictly financial and
economic policies inaugurated by the
Roosevelt administration, and on the
denfense of these policies by their
authors.
Nearly all Of the important policies
of the administration, on which the
attack of the opposition will center,
leads back to the functioning of money.
In the decisions of the United States
Supreme Court, from that in the gold
case to this weeks opinion in the
minimum wage law, the question of
monetary compensation, in some form,
was close to the heart of the matter.
Gold Discussion Due.
Wall Street and the banking inter-
ests Of the country will expect to find
in the Republican platform consider
able space devoted to the early action
of the Roosevelt administration in
going off gold. They emphasize the
reputation of the Democratic plat
form of 1882 on the gold clause and
concede nothing to the fundamental
changes in the national economy that
occurred in the nine months after this
was written and which demanded an
entirely different line of action II
those changes were not to ruin the
country.
On the first legal test of the gold
clause in Government bonds, the Gov
ernment won its case, to the conster-
nation of capital, and brought. as a
sequel, the emotional implication of a
dissenting judge that the country was
on the verge Of disaster. Since then.
this court has stood by different phases
Of the gold seizures. This week it ruled
out another attempt by a holder of
Treasury bonds to collect interest In
gold.
In spite of the fact that the pay-
ments are made in dollars at current
value, the price Of Government bonds
has advanced since 1888. Its recent
average was the highest on record
This week the largest peace-time loan
was six to seven tines oversubscribed
at low record rates of interest. It i'm.
mediately sold at a substantial
premium.
As a campaign issue. therefore, the
reputation Of the gold clause plank
will not much excite the average voter.
Many have believed devaluation i'm
perative to adjust our currency not
only to the debated condition in this
country, but to credit throughout the
rest of the world.
Spending Vital Issue.
AS for its attitude toward the other
controversial phase of Government
financing. the public is more vocal.
The average man can understand it.
The subject Of Treasury deficit has
been drilled into his ears for the last
two years. So has that of an all
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