The Waterbury Democrat., 1936-12-31

01R1S. BUSINESS meanwhile ]
and further gains are anticip
Depression seemed to have been
left behind despite the fact that
much Of the incentive for the re-
covery was artificial. So rapid was
the rise that official Washington
trained its attention on methods to
cope with the situation before 1t got
on Of hand as 1t did in 1929.
Further recovery could easily car
~ over into 1887 In the opinion OF
Wall Street experts. But its scope
depends on checks imposed by the
government. These might include
increased margins, reduction in
market liquidity through segrega-
ton Of broker and dealer activity,
legislation against foreign transac-
tions In American markets, and tax
law changes.
None believes that the admins
tration desires to squelch the mar
ket. A strong stock market induces
confidence in business and helps the
recovery along. The plan that
might be adopted is to prevent q
runaway boom based on himsy cred
It accounts. Just how far the gov
eminent can 60 without disastrous
results Is problematical. But 1t Is
believed efforts will be made to pre-
vents duplication of the 1929 de-
bacle in event the rise continues at
O fast pace.
April Only Month Of Decline
Gains during the past year were
scored in every month save April.
That month broke rise that had
endured for exactly IL months to
become one Of the most prolonged
in recent market history. Bonds
also mounted with U. 8. govern
ments making records. Commodities
made new recovery highs.
Millions and billions can be BAN
died about in addition to the gigar-
III stock appreciation. Bond and
stock offerings approached $1,000
Go9 901, q new 6-year high, but most
81 these were for refunding. The
goVernment's gold holdings crossed
III 500, co0,00 to the highest on rec
ord. Electricity output neared 107,-
O0A000, 900 kilowatt hours, a record;
automobile production approached
100000 units, the best since 1923.
Steel ingot output at 47,700,0 200 tons
was the best since 1929. Building
permits in principal cities were close
to $1,000, 100000 for the first time
since 1881. Car loadings totaled
better than 3e,000,0 900, the best since
1881. The oil industry turned out
: !, 100, 600, 900 barrels Of crude oil, for
O record production. The nations
railroads had net income OF around
$l60,000, 900, the highest since 1881.
Foreigners raised their investments
In American securities to above 81
000, 000, 900. -
stocks generally followed the
trend Of their industries. Utilities
were exceptions to this because OF
government pressure. Leading mo-
tor shares made new highs since
1919. 5teels mounted as output APP
preached 80 per cent Of capacity.
Oils were slow. Coppers rose when
domestic copper was advanced
steadily to II cents a pound. Rams
gained but at q slower pace than
the industrials. Farm shares were
strong on outlook for heavier pur-
chases from the agricultural COM
munity whose income was UP about
10 per cent for 1896. Chemicals
made wide gains. Can stocks de-
clined on poor business caused by
the drought. Gold lost popularity.
Business Rise Aids Market
The market weathered the cleo
ton without difficulty. Following the
democratic landslide, the attitude OF
Wall Street and industry changed to
one Of cooperation with the admin
istration. The European situation
produced momentary flares Of dill
Guilty quickly followed by recoveries.
wall Street doesn't believe Europe
Is ready for q war just now and
hence Is prone to overlook much OF
the seriousness Of the situation
there. Break up Of the former gold
bloc through devaluation OF French,
Swiss and Dutch currencies had
been anticipated and discounted
amply before 1t happened.
The stock market recovery was IN
duced primarily by the business
rally. The latter's pickup In turn
was aided by natural recovery FAC
tors and by artificial stimulation OF
government funds. A soldier bonus
Injected more than billion dollars
into trade channels. Several BILL
lions more came in the form OF re-
lief and public works. These ex-
penditures may be curtailed In 1881
but the financial community hopes
the reductions will be offset by ex-
penditures by industry which wouia
do much to aid unemployment OF
those on relief rolls.
imitation appeared to be out OF
the picture In 1888 and 1t Is not
mentioned as factor In 1887. There
Is of course the basis for giant cred
It imitation In the gold hoard ana
Il a believed the Federal Reserve
wifi take steps shortly to reduce that
base through raising reserve re-
Uncertainties overhanging the
market in addition to fears OF gov
eminent intervention to slow the
rise include the altitude Of congress
with respect to IL. lustry. ability u
the government to continue an easy
money policy. Supreme Court &C,
ton on such items as the Social
security Act and Wagner LABOR
bill. trend of the government IN the
utility industry. and labor's attitude.
YALE PROF. KILLED