The Daily Alaska empire. [volume] (Juneau, Alaska) 1926-1964, 1937-10-20
STOCK MARKET SLUMP

The stock market continues to be afflicted with
inferiority complex Shares which have been slump
ing for weeks fail to rally appreciaby although
gains were noted yesterday following big drop the
day before Not only are American shares off but
Montreal and London also report drops Both latter
markets were off yesterday, Montreal reporting some
levels lower than in years.
Scores of reasons advanced, ranging from
alleged Wall Street manipulation to scare. Demo-
cratic Congressman SABBATH of Illinois voiced publicly
yesterday what have been charging in milder
way for some time-political movement on the part
brokers opposed to present securities
regulation effort to embarrass the present adj
mnistration. 1nere may be degree of truth in
such theory but it is hard to believe that there is
any group of strong enough financially to cause
such general depression in stocks. Although it may
be possible that such opposition might take advantage
of contributing factors and aid in forcing shares down
if they saw merit in the scheme
However the fact that reaction is felt on the
foreign exchanges would lend weight to the theory
that the stock market furry is not entirely due to
national affairs and that the unsettled conditions
throughout the world, with two wars actually being
fought are strong contributing factors.
Best evidence that the market filters is of tenn
porary nature and not based general slump in IN
dustEy may be found in the Aaska-Juneau quotations
A. twas down to new low of rs yesterday Yet
the local gold mining company recently declared an
extra dividend and its eight months report shows
an increase in profits and output year ago
Furthermore, those of here in Juneau see opera
lions continuing daily with upwards of 1000 men
employed at good wages and sufficient ore blocked
out for work to continue for years to come.
Thus, it is evident that there is considerable diff
ference between an actual fact and financial
such as emanates from the New York Stock Exchange
The former keeps business generally the keel
in evidence about the country. The latter, too
long an alleged barometer of what going to happen
gives the financial experts something to worry about
and tends to cause spirit Of unrest.
Perhaps some day wizard will come along
with solution to the stock markets intermittent
heebie jeebies. In the meantime, We'll string along
with actual facts-wheels of industry turning at
normal pace-men at work
Even Business Week the financial magazine
which sounds startled every time Wall Street broker
coughs admits that despite the pessimism there
a number of other developments that partly offset
the gloom. For thing retail sales definitely i'm
proved in September and. while automobile produce
ton rising only slowly because Ford has gotten
into line yet the impetus of this industry should be
making itself felt any day now, Steel activity has
dipped below rs per cent of capacity and may
little lower if motor buying in volume is delayed
much longer. Still even 70 per cent of capacity is
bad rate and the industry feels that the pessi
mism has been overdone."
When Business Week and the steel industry both
feel that pessimism has been overdone the rest of
us can feel optimistic to the extreme.