Evening star., 1936-05-24
STOCKS CONTINUE.
TOTAKE COL0RLESS
COURSE IN WEEK
Domestic Business Reports
Lose Force-Guffey Act
Ruling Ignored.
TEMPORARY DEADLOCK
IN COMMODITIES SEEN
Wholesale Price Level About
Three Points Lower Than Month
Ago and Last Year.
BY CHARLES F. SPEARE.


Special Dispatch TO The Star.
NEW YORK, May 23-There has
been little departure this week from
the colorleSs record of business and
market movements prevailing during
May. The statistics of industry and
Of trade, Of bank clearings, car load
ings, electric output, iron and steel
production, retail and wholesale turn
over are favorable but now quite ia
miliar.
They appear to have lost their
force in Wall Street. There the mar
ket is idling. unresponSive to what
might be considered good news, as
the United States Supreme Court S
decision against the Guffey coal con-
tract act. but showing resistance to
bearish events The shadow of the
French currency crisis hangs over it.
There Is always a close sympathy be-
tween the happenings in Wall Street
and those in mercantile and indus
trial circles.
In commodity markets indications
of a temporary deadlock between buy
ers and sellers are present. The
wholesale price level at one time this
week was 3 points lower than a month
ago. 1t shows about the same decline
from the Springtime level in 1885.
Profits Outdistance Wages.
The American Federation Of Labor's
latest survey places business profits
in the March quarter SO per cent
above the same period last year. but
average weekly wages up less than 5
per cent. No one knows whether
there are 10000 900 or 100000 I'M
employed, or which of the several re-
lief methods is best suited to those
lacking jobs and easiest on the tax
payers pocketbook.
One OF the cheering signs Of the
times is the rise in privately financed
construction. In April, according to
the F. w. Dodge figures. this business
was the largest IN dollar value in five
years.
In spite Of their low coupons high
grade corporation bonds hold their
fancy premiums. A majority Of the
United States Treasury issues this
week were at record prices. There
has been no effect on them Of the
recent advance in money rates, though
probably the market is being groomed
for another large issue of Government
paper next month. The reception of
this may depend somewhat on the
status Of the French currency Situa-
tion at the time of the offering. This
weeks renewed flight from the franc
and weakness in other gold currencies
has an ominous look.
The decision Of the United States
Supreme Court this week, in the Guf-
fey coal control act case. strikes an
other blow at the humanitarian phil
osophy of the New Deal by means OF
a rigid Interpretation of constitutional
rights. This was emphasized in the
following sentence from the majority
opinion: Nothing is more certain
than that beneficent aims. however
great or well directed can never serve
in lieu of constitutional power"
Cites Amendment Method.
And Chief Justice Hughes, in his
separate affirmative opinion. took
occasion to remind the American pub
lie that. IL it wishes to change the
Constitution to conform to newer idea!
Of regulation of industry within tht
States, 1t must proceed ''in the appro-
pirate way" that is, by amendments
properly voted. 1T is not for the
court to amend the Constitution BY
judicial decision" he said.
The fact that the bituminous Goa
industry has. for years, been in con-
dition described by Justice Cardozo, ir
his dissenting opinion, as an "anarchil
riot" that the business world, after
March 1888, was in state of con.
fusion and fear demanding for its re-
demption something akin to the N
r. A., under whose codes 1t immedi.
ately began to prosper, Or that the
plight of the farmers of the country
due to a period of fearful def1ation
was a menace to the economy of the
entire Nation, has no Importance, st
1t is argued, in the Interpretation o.
constitutional law when the Fedora
authority imposes itself improperly or
that of the States.
Another Madison Needed.
1t Is unfortunate that there could
have been no Madison to guide the
administration as it erected the rough
structure of its social plan and SO
have relieved it of future embarrass-
ment. The administration has fol-
lowed the example of Hamilton in
assuming that there were implied
powers in the Constitution.
In opposing Hamilton's bank bill,
Madison argued before Congress to
the effect that 1.-The doctrine of impli-
cation Is always a tender one. The
danger of it has been felt by other
governments. If implications
thus remote and thus multiplied may
be linked together, chain may be
formed that will reach every object
of legislation, every object within the
whole compass of political economy
More study of the exact tenor of the
Constitution and less haste in pro-
noting new and vital legislation might
have saved for the country years of
delay in advancing social and eco
nomic principles that inevitably must
prevail.
The effect Of the Guffey coal de-
cision on business is to relieve the
railroads and the public utilities of
increased annual charges estimated
at $40, 600, 900, to check the threatened
change in the channel through which
coal shipments from West Virginia
have passed and to continue the pow
erty of the smaller mines and their
operatives.
(Copyright, 1885, by the North American
Newspaper Alliance, Itro