| Show A As 1933 Nears End Expert Observer Observer Ob Ob- I SLUMP From server Depression Sees America Emerging I By ELMER C. C United Press Financial Editor NEW YORK Dec 15 UP UP UP-Amer- Amer America ica after nearly four years of devastating devastating devastating devas devas- tating depression slowly was emerging emerging emerging ing into better things as 1933 drew to toa toa toa a close and the outlook for 1934 barring the unforeseen was better than at nt any year-end year since 1928 The course of the recovery which began shortly after the thc new administration administration administration adminis adminis- assumed office March 4 was not smooth Every bank in the antion nation nation na na- tion closed on inauguration da day and remained closed for several days The stock exchange was closed during the bank holiday Then Than came in rapid order abandonment of the gold standard standard stan stan- dard legislation for reopening the banks a sharp drop in the d dollar legislation leg leg- giving the Hie president broad brond inflationary in in- powers including devaluation devaluation tion of tho the dollar by 50 per cent and issuance of greenbacks drastic legislation on securities flotation flotation flota flota- tion a vast gov government program to aid the farmer and a system of regimentation regi regie of industry legalization of 32 beer and on December 5 rep repeal al of the eighteenth th amendment New Real Response First response to the called so-called new deal was a sharp prush in stocks and commodities The The- rise was inversely inversely inversely in in- proportional to a drastic decline decline de de- de- de cline dine in the the dollar Ever Everything thing moved up until the middle of July when the years year's peaks were made in business stocks and commodities Thereafter the effects of dollar depreciation depre elation were less and less but business began a solid recovery late in the year and things looked brighter all around Markets made their lows in March but none went to the depths touched in 1932 when the average for all stocks listed on the stock exchange touched 1 1189 per share The average as 1933 came to a close was more than twice that figure All stock groups were above the end of 1932 save the ut utilities which were adversely adverse ly affected by rate cuts and a trend in many sections toward municipal ownership So called wet stocks soared on repeal prospects farm shares rose with commodities and nd mining issues Were vere good Market 1 Futures Futures in the stock market included ed Homestake Mining gold which rose from a low of to a high of U. U S. S Smelting silver from 13 12 2 to 8 5 National Distillers 16 1678 8 7 to 8 7 American Commercial Alcohol from 13 to 89 8 7 U. U S. S In In- Alcohol from 13 12 2 to 94 J. J I. I Case farm implements from 30 2 1 to 2 1 du Pont chemical from 32 8 1 to above 92 Chrysler automobile from 7 4 3 to 52 8 7 and Goodyear Tire and Rubber from 9 4 1 to 47 1 These issues and others on the big board sold off olf from their highs but rallied again before the year end and andl many including the chemicals were carried to 1933 highs in m December Trading was active in shares in the summer boom and md the years year's total was around the share mark the highest in history save the boom years of 1928 and 1929 and the year 1930 Bond sales were sharply higher than thanin in recent years ears Gold Has Spurt Taking April 17 as par or stocks in the industrial average rose to on July 18 railroads to utilities bonds bands wheat and cotton cotton cotton cot cot- ton Gold meanwhile spurted in inthe inthe inthe the world market and the Reconstruction tion Finance corporation raised the price steadily until it crossed 34 per ounce against former parity of 2067 In terms of the French franc rane the dollar dollar dollar dol dol- lar broke below 59 cents and then recovered recovered recovered re re- re- re covered part of the loss At the highs the pound sterling touched in in dollar terms and the French franc 2 2 1 cents against parity of and cents respectively respective The pound back in March was quoted around in dollar terms Business Gains Business made remarkable gains lost part of them and resumed the recovery as 1933 drew to a close Steel operations rose sharply in the summer summer sum sum- mer boom but steel companies failed to make a profit at the higher rates automobile business was a feature and General Motors corporation earnings earnings earn earn- ings in the first nine months of the year showed a rise of per cent as compared with the corresponding period of 1932 Factory employment and payrolls steadily increased thanks to the government campaigns to put men to work Building gained through the aid of the public works administration car loadings made a good showing as compared with 1932 as did electricity output and other major indices Most commodities closed the year ear higher Farmers' Farmers purchasing purchasing pur pur- chasing power was enhanced by government government government gov gov- aid All in all all the foundation foundation tion was laid for building a sounder business structure in 1934 and industrial industrial indus indus- trial leaders were making predictions the new edifice would be so constructed construct construct- ed cd as to resist better the winds of ot depression depression de de- de- de that might blow up in the future |
