The daily independent., 1937-06-02
Uncertainty Is
Serious Bar To
Stock Trading
international Situation ana
Domestic Gold Status
Are Main Factors
By MAN BUCKINGHAM

New York. June 1.-tUPl-Gold
ard war rumors combined TO-DAY
tn create an international market
uncertainty which behooveS eX-
treme caution on part OF traders.
The situation on holiday dcvel-
ODmcntS were:
l. London was convinced that
something will happen to the
American gold price Soon. Gold IS
coming out of boarding through
fear the present high market may
soon be destroyed to the hoard
ers. Private adviceS to Wall Street
from London were that the uncer-
ta;nty likely will be removed. But
until then - no one is tradlng
widely in the market. The Amer
lean inactive gold fund is ap-
o, oaching S300000.000.
.. The international situation
caused by German Shelllng OF a
Spanish port took secondary con-
sideration to the gold problem,
However the tenscneSS was SO
great that no definite market con-
clusions could be established,
Heavy selling of metal shares and
metal was based on the belief that
W3r is not imminent if such de-
velopments as came in the past
week do not precipitate a break.
Bit those bulliSh on metal stocks
still point to the fact that the
situation emphasizes Europe S
war-nervousnCSs and that the rate
to arm will be expedited by the
developments.
The market here opened weak.
Steel and metal shares led and
carried the list sharply by mid
session. U. S. Steel at one time
showed four points loss and loss
es of two to three points were
common. There was some I'M
provement in the final hour-poS-
sibly short Coyering-and closing
losses were from one to more than
two points. Trading volume ap-
proXimated 100000 shares.
Until London's nervousness
Gains down there can be no ex-
pectation of improved trading
here because so much of the mar
ket situation here depends on
London's buying. In addition there
were numerous domestic develop
ments causing caution. including:
Steel-Production schedule this
week. in view of strike StoppageS
is only TIA per cent Of capacity.
This is a drop of 1876 points from
the preceding week and the Wild
est loss since July 2. 1884. The
production level is the lowest
since the week Of December %,
1886. when the operating rate was
II per cent of capacity.
Legislation-The presidents de-
mand for relief from tax lodging
had no effect on the market al
though there was relief at indi-
cations of no new taxes. But the
legislative program of wages and
hours, the power program and the
Supreme court fight add uncer-
tainties to trading. The Supreme
court decisions on several utility
cases were construed favOrably but
not sufficiently favorable to lift
the pressure from the utility Shar-
eS which have been a hindrance
to a rise in the market.
Industrial OperationS-Automo-
bile production in June is estimat-
ed around the May level as COM
panies seek to make up losses that
occurred during the labor shut
downs. However the steel strikes
are not encouraging. Indications
in the machine tool industry are
that some decrease in sales may
be anticipated during the sum-
mer. Farm equipment operations,
however, continue high and eX-
pectatiOnS are for heavy sales
during the summer as advance
adviceS are Of rising farm income
which will bring greater purchaS-
eS of such equipment.
Railroad carloadings have been
excellent but the steel strikes like
ly will cut widely into such ship
mentS if the strikes are prolonged
to any extent. However a good
wheat crop in TIN Weest and north
west will assure good loadingS by
the granger carriers.
The Street today talked about:
Pos IJility that Crucible Steel
in tn, first half will show around
81 a share. Tubize Chatillon
expected to earn around SO a
share for the year. Campbell
Wyant & Cannon Expected to
earn around 81 a share for the
year.
MRE5 q