Show THE DAILY NEW YORK Fin Financial a n ci a I W Whirligig h i r I i 9 Written for tor The Telegram by JAMBS McMULLIN NEW YORK YORK Quite Quite a few lew of the smart lads lads both both here and abroad abroad- were set for a quick and cas easy cleanup cleanup cleanup clean clean- up if iC the gold decisions had gone the the other way They figured the 69 per cent profit prom on their gold old clause e securities could be put to work at once scooping up tip other investments investments in in- vestments at the temporary panic prices which were expected That would have p pyramided their gains Jains I to startling proportions when things snapped back to normal This doesn't mean that a majority of ot Wall Wan street timers big timers big or r anything anything anything any any- thing like hike it were It-were were in on the play The actual number of ot those preparing preparing preparing pre pre- paring to shoot the works on this system was small But the liquidation liquidation liquidation liquida liquida- tion of at gold clause bonds since the decision was rendered gives striking lag ing evidence that plenty of ot money was involved Speculative enrichment enrichment enrichment enrich enrich- ment would have been spectacular Keen New York observers believe believe believe be be- lieve the public reaction to the picture picture pic pie ture turc of a few shrewd traders making making making mak mak- ing fabulous profits at the expense of the many might have en engendered engen en- en dered grave political consequences They also figure the supreme court I majority must have been aware of thus this angle Its It's noted that the five justices who upheld the new deal are all from New York Boston or Phila Phila- delphia The four dissenters ers come from the thc interior The easterners were presumably better able to appraise appraise appraise ap ap- ap- ap praise accurately the gamble involved in- in evolved and what it il would mean i if the decision went the other wa way Insiders remark that their toughest tough tough- est job was to find logical reasons for lor a step that was socially urgent 0 New York enders bitter-enders are scouting around fo for foran an American living abroad on the income from gold clause Liberties who is willing to test the loophole offered by the court for tor provable losses looses due to repudiation by act of ot congress If It they find one he will be enriched enriched en en- riched with carloads of bonds loaned from here in case the thc long longshot longshot longshot shot comes through The idea is to get et something started in a hurry before congress shuts off this avenue avenue ave aye nue of escape Interested parties dont don't want the test to be made by British or French holders of American bonds They can imagine nothing that would give congress greater pleasure than to enact legislation squelching foreign foreign foreign for for- eign claims for lor damages s. s liS e Secretary new method of raising fresh tresh funds with six and nine-month nine discount bills instead of bonds or notes took Wallstreet Wall Wallstreet Wallstreet street by br surprise Financial sharps figure this departure means three things 1 Government spending will not be as prolific in the next few months as is generally generall expected A good deal o of money can be raised in this way with a minimum of ot excitement excitement but but it would take quite a while to run It into billions 2 B By confining March and April financing to refunding operations the treasury is sure of getting the cheapest possible rates for long- long term issues 3 The administration evidently figures its it's wiser not to plan any large scale new financing until after congress has called it a year e f. A number of ot New York investors invest invest- ors are interested in the new baby bonds as a hedge against their commitments commitments com corn in outstanding government government govern govern- ment issues The terms on which the treasury will repurchase the babies plus babics plus the fact that they are arc nontransferable nontransferable-is is an absolute guarantee that they cannot decline i in n dollar value Some of Wall Wail streets street's confirmed pessimists are apprehensive that federal issues traded in the open market will depreciate ns s s I when inflation takes hold As As- gains in the babies would L help offset such potential losses and arid there will wm be many subscriptions to the tho limit on that basis e e 0 Conservative resistance to Premier Premier Premier Pre Pre- mier efforts to liberalize the Bank of France is worth th wa watch watch- Ing New York In Insiders iders hear there may be an explosion if Baron Edouard Ed Fri Rothschild and Senator Francois Fran Francois cois de French Wendel-French French munitions king king carry carry out their threat to resign resign re sign from the banks bank's board o of regents regents re reo gents if it the government continues to force relaxation of credit require require- ments Rothschild Rothchild and de Wendel tie tic up closely closel with Colonel de la Ia Rocque fiery fiery head of the fascist Croix de Feu So far this organization h has been remarkably quiet quiet but but theres there's a lot of steam sizzling under the lid An open break brcak between the premier and outstanding conservative conservative con eon leaders might blow it through the roof 0 lit 9 New York expected Jerome Frank liberal recently ousted as legal chief of ot the A AAA to AAA-to A to A-to to catch on I somewhere else in Washington Washington- but hardly with the R F C. C Com Corn Comment Comment ment merit runs that Jesse Jones has hai given shelter to new nc deal refugees before but but not to those accused of ot left wing leanings You hear it said that perhaps Jones figures it would do no harm to have a few friends in the liberal camp by the time 1936 1036 rolls around 9 40 9 e 9 eThe The informed know the R II F C has quit playing indiscriminate Santa Claus to starving railroads J Jesse esse Jones Jones' warning that applicants for loans must hereafter prove sound mana management ement and justify their economic economic eco ceo existence was not news t to Insiders Long deferred reorganizations look ver very close now These will be painful to security holders of the roads affected but experts agree the whole rail pic pie ture should be much healthier after the housecleaning 99 Leave it to the French to try to tomake tomake tomake make Uncle Sam uncomfortable As a subtle rebuke for tion American holders of ot French bonds will be paid in the cash equivalent of gold This is a delicate delicate deli deli- cate attention even attention even though the thc embarrassing subject of ot government government govern govern- ment merit debts isn't mentioned mentioned but but New York doubts that congress will swoon with shame at the Gallic thrust us 1 fI 0 I A lit 9 Railroad men generally approve of ot Coordinator Joe Eastman's solution tion for their troubles The Hudson Manhattan railroad is dickering with the city to take over ovet its Manhattan subway lines and cut out mutually damaging com corn competition competition petition with the city's own road rOId The coffee coHee and sugar exchange blames likker for the 1934 decline in coffee consumption by 18 1 4 cups a year rear per pcr capita o 0 t New York got a kick out of ot the William R R. Will Hearst Rogers- Rogers Father Coughlin combine against the world court The irreverent suggest they should really form a permanent firm to be known as the Hill b b e c a u use s e the Wills VilIs and partner could guarantee guaran guaran- tee to give Capitol Hill the willies on demand Frank favored I candidate for tor Pecora's job on the securities and exchange e commission commis commis- sion has sion-has has been member of the San Francisco t I. I ck exchange for or about 20 years and its president for two terms 9 9 9 i Brokers are arc wary of viola violating Ling the I law against giving market Up tips Butin But Butin Butin in these thin times something must be done to stimulate customer in interest in- in terest and terest-and and theres there's no law against answering questions So the stunt I is to telephone clients and ask them if there isn't something they'd like to know All too loo often otten there isn't There will be one significant change in the extended version of N R A. A Imposition of or wage and hour codes code on all industries s within the scope of the law will ill be made mandatory mandator instead of being left to the presidents president's discretion This is not a slap at F. F D. D R. R On the contrary contrary contrary con con- it will simplify his task by making it impossible imposible for foI industries to use the d discretionary feature asa as asa asa a trading point in maneuvering for conce- conce concessions in other directions dirc A number of industries have tried that under that under the present law law and and got ot away with it Cop Copyright McClure Newspaper Syndicate |