| Show INSIDE 1 ST I Politics and Finance WASHINGTON By Paul Mallon Copyright 1933 by Paul Mallon Manon iThe confidential reports Mr Roose- Roose jj is getting setting or OH 0 the business out out- leek ek ire are highly y optimistic The The experts who work in his own rate economic laboratory have ad ad- wed sd him that things generally look fiT aty for at least three months to 5 That Hut Is Li not propaganda but opinion Such opinions I Wre liTe not been worth much since so soI My of ot them went wrong In jn 1929 I FACTORS tot kt th these e are are as good as you can get conclusion is somewhat amaze amax I IIII III- III 1 i. i Most Host of the business indices have been slipping a little during the Wt Jut few weeks or of or at best holding t ow own with difficulty Steel au au- car loadings and even com corn Judal electrical consumption have frozen by the first winds of L The Tie optimism I. I is based on obvious Banks are god 1504 shape for yearend year statements money naney policy h howl l has died i to Ia a gurgle The belief betie is gennat gen- gen that nat the gold price will not go goft ft higher gher The the government Is passing out Ky on a I scale which will reach its itse home time e during January and r I Its financing worries are Cely over until April 1 1 sales reports are gener gener- LU rood j The money policy has hasP P Q cotton immeasurably ably through The wheat and hog corn g arc doing the same sune thing for lit fit t. t The Hopkins relief checks We the purchasing power of lite 2 7 poor Prohibition repeal has a large IDle legitimate new bu busi- busi The b Wall u streeters decline to credit I i bad ad news and ore sending the thep iet up p The belief is general that market levels will be reached wn three months Oi WP top of all that you have the Li 1 1 busin business trend expectations Continued nn on PUt Pace Two TO INSIDE STUFF Politics Polities and Finance Continued rom From Page Pue One business always starts to awaken as asa asa a normal prelude to o spring CONGRESS Usually the experts expert become fright fright- ened ned at the convening of congress Not lot sq so this time Mr Roosevelt has congress fairly well under control There will be beno beno beno no appreciable split in Democratic ranks anks on on the money issue Senator Glass may cuss a little but the Democratic Democratic Demo Demo- Demp- Demp cratic majorities of both houses willbe will willbe wille be e largely with the president In he will have the progressive Republicans That leaves about 20 per er cent of congress t tk group of Republican conservatives as the only opposition That kind of opposition may help Roosevelt's game more than thant It t will hurt The prospects prospect therefore favor a tame ame Roosevelt session rather than thana a lively opposition one MONEY IONEY l IONEY The one trouble spot to which the experts are re looking forward is the financing mancing the government will have to o do in the spring All these expenditures ex- ex cost money They are going going gong go go- ing ng to make financing more difficult Action must be taken regarding a billion million in lit Liberty bonds coming due April 1 I Also there is the troublesome troublesome troublesome trouble trouble- some question of capital financing Opinions about it differ The majority majority ma- ma says Mr Roosevelt will have to o thaw the capital finance market mark t tor or his recovery will hit bit a spring set set- back They are demanding amendment amend amend- ment to the securities act There are some some too who believe the wild men menn in n congress will remain placid only for the first few weeks I If they do you can mark it down in your notebook notebook note- note book ook that Mr Roosevelt will veto greenbacks and they cannot pass such an idea over his veto Anyway the problem of crossing these bridges will vill be more important when we come to them The treasury investigators believe they hey have found lound out what caused the gold jold leak eak The figure is telephoned to o the Federal ral Reserve bank of New NewYork NewYork NewYork York as soon as it is fixed The Federal Fed eral Reserve bank has open cable connections with the trie Bank of Eng Eng- land and The news gets to London al almost almost almost al- al most instantaneously In announcing it here officials walk from the telephone to a mimeograph mimeograph mimeograph mimeo mimeo- graph machine An announcement is concocted and run off Under this setup the figure ligure has reached London seven minutes before it arrived officially officially of- of in Wall street from Washing Washing- ton SPECULATORS The way the gold price has hM been running lately no speculator could make nake any money out of it Advance knowledge concerning it would not be worth a dime to anyone Treasury officials really do not believe any speculator peculator has nas bribed a treasury treasur em- em They will be surprised if they get let any evidence to that effect NOTES Some observers observer also are worried about financial conditions in certain European countries If their fears materialize it would have a detrimental detrimental detri deli mental ef effect on our rosy picture a a aThe The liberals did not know it but George Peek was all aU ready to spring something on them before their blow hit lit him a a a Most of ot the N R A codes are for two wo years Only a few were for a awo I two wo and three months months' periods steel automobiles and these probably will willbe willbe be renewed a S Jokesters are quoting President Nicholas Murray Butler of Columbia as lS saying apropos of his college professors professors pro pro- lessors going into public service The university's university loss is the nations nation's nations loss loss also NEW YORK By James McMullIn Copyright McClure N Newspaper Syndicate The gr growing wing feud between the New NewYork NewYork NewYork York banks and the stock exchange will burst into flame when the senate committee begins taking the exchange exchange ex ex- ex change apart to see what makes it tick Both the the- banks and the exchange face stiller stiffer federal regulation Each is anxious to get ot off lightly as u possible possible pos pos- sible which means blaming the other oth other er fellow for speculative excesses When the exchange gets its iu innings it will try to pin pill the works on the big ba bad banks and the banks will retort in fond kind Local bankers believe Senator Glass will help their cause along because because because be be- cause of paternal p resentment against charges th that the federal reserve system tern tem is is' responsible His interest inthe In Inthe n the Investigation is expected to regis register ter a sharp jump when he gets a chance to belabor the stock exchange exchange ex ex- change crowd He is credited with knowing more about the subject than any other member of the committee and lo local al bankers hope he docs does a thorough job The stock exchange will wiIl insist that thai it can can only control technique and arid that thai technique is not at fault One banker bank bank- banker er erl says you will hear so much about the mechanics m of the exchange you will think youre you're In a machine shop CURB The curb cur exchange Is pleased to know it will get off lighter than its big brother in inthe the matter of ot pools and margins two margins two of the liveliest bones But much of ot the November flight of capital was arranged arranged arranged ar ar- ar- ar ranged by transfer of stocks between curb houses and London and the curb will wi l hear plenty about that T TAXES ES Wall street credits Washington wit with deep st stuff ff on the proposed change in the capital gains and losses provision of or the income tax The proposal provides that the tax shall apply at its full rate on the transactions less than a year old tapering ta ta- cring down to 20 per cent if 11 the transactions are five live years old See what happens Financial big shots who have been saving stocks they bought in 1929 to sell seU for tax losses would only be able to claim one fifth as much loss as they thought they could This angle hasn't been played up but its it's mighty important here here- Dozens of ot Wall street strong boxes are loaded to the lids with 29 boom babies currently selling seIling around a nickel to the dollar Their owners had counted on them to offset future profits at Uncle Sams Sam's expense If II the he new proposal goes through all bets jets will be off off and and are the boys distressed at the prospect Another effect would be to penal penalize Ize ze in and out speculation by taxing short term profits at a higher rate than han long term Some experts think that hat would do more to curb the speculative spec spec- mania as recovery progresses than han any other measure that has been proposed SHIFTS The actions of ot European big business business busi busi- ness as 38 reported to their New York contacts show skepticism about disarmament disarmament talks Siemens the Siemens-the the great German electrical concern has concern has quiet quiet- ly Iy y disposed of its Polish subsidiaries What you dont don't own cant can't be confiscated contIs in m case of war Radio Corporation of America which at one time employed over people In Germany has trans trans- erred those particular departments to England Th This may be come come- dence |
