Evening star., 1938-07-11
Wall Street Seen by Press
As Sign of Better Business

Recent ACTIVITY IN the stock market
is interpreted by the press as evidence
that business is definitely on an upward
trend, and that its confidence will ex-
tend throughout the year. It is also
predicted that in the coming elections
voters will give preference to those can
didates who will be inclined to restore
confidence.
conservatives" according to the Rich
mond News Leader. feel that the rise
may reflect no more than passing hope
that the President will pursue a con-
ciliatory course toward business until
after the elections in November. Cau-
tious observers pointed to the vast stores
of unemployed money and insisted that
any rise in the market would prompt
buying out of proportion to the impor-
tance of actual industrial gains. On the
other side, attention was called to the
rise in the exports of motor vehicles,
which. all down the line, will have a
stimulating influence on the heavy in
dustries"
1T is plain common sense" advises
the Hartford Times, that the business
Of this country is not going to stay nat
on its back simply because 1t may not
like the President or because it fears
the administration. The Nations re-
sourcefulness, its Ngor its inherent urge
to do and to make are too great and too
powerful to be overlooked No matter
how many ills we may think we have,
and do have to contend with, the in
telligence and courage of the American
business public should be ashamed to
adopt an attitude of defeatism.'
1T was not unnatural" thinks the
New York Times, that. the market
where prices were averaging we'll above
the years low level of March, should
have risen emphatically. with greatly
increased volume of transactions. How
much Of recovery from the recent very
unfavorable conditions in general trade
was indicated is necessarily a matter of
conjecture. 1t may mean much or lit
tie. Probably 1t makes more impression
from the fact that the Federal Reserves
production index has been lowered in
practically every successive month from
August. 1887. to date"
Recent primary elections" 1t is
pointed out by the Pueblo (Colo) Star
Journal. have demonstrated that the
question OF Endorsement by the adminis-
tration Is not as vital as was supposed.
If 90 to Is Representatives are elected
to displace the radical portions of the
House OF Representatives with true Pro-
gressives. there will be less of tendency
to push through reform legislation which
so far has failed to prove it's full bene-
fits to those 1t was supposed to help,
while on the other hand it has tied the
restrictions around the development of
business so tight that few have been
willing to take a chance on a losing
proposition. While the squirt which
seems to be coming is similar in many
respects to the squirt We enjoyed for a
while In 1888, there is a greater chance
that this time there will be a corrective
Congress to undertake spending and
employment on a sound and construc-
tive basis"
The testimony Of the market" ad-
vises the Pasadena Star-News, which
more often than not is right, is that
business will be better this fall and
probably by Christmas should be de-
cidedly better. Such a condition would
be the natural result of replenishment
OF diminished inventories and the pump
ing Of hundreds of millions of dollars
into channels of trade and industry by
the Governments lending-spending pro-
gram. The borrowed money eventually
must be repaid with interest, but the
spending Of it will be tonic so strong
that even the anticipation of it has
gwen the volatile market a spree"
For months" states the Worcester
Gazette, business analysts have been
saying, guardedly, that there were pros-
poets of better business during fall.
They made special mention of the prom
1s1ng condition Of business inventories.
Resumption Of Government spending is
generally counted upon for some stimu-
lus, temporary though it may be. So
that the stock markets improvement
fits in approximately with general ex-
pectatlons. BY and large, stock prices
have seemed to move a month or two
ahead of the economic curve. That was
the case late last summer before the
curve turned downward. And it had
previously been the case often enough
to give some reason to the view that the
market anticipates a general business
instead Of following it."