Show MONEY MARKETS MARI ETS By James McMullin The T Telegrams Telegram's Exclusive Observer Along Wall Well Strict Street NEW YORK Reports that the president was considering re revision revision re re- vision of ot the Wagner labor labar reI relations rela relations a. a act have boiled down to his authorization for tor a study of or the British trade disputes act New NewYork NewYork New York labor labar chiefs see iee no threat from this source The British law taw 10 1 loudly ly praised but commonly common ly 1 misunderstood by American industrialists in tn In- In provides only for voluntary voluntary vol vol- registration trl of at unions and andIn andIn andin in no way impede Impedes unionizing ac ac- ac- ac Labor men doubt that it win will bo ha found generally applicable ble to American conditions Two amendments amendment to the tho labor act sponsored d by br Senator Arthur will wU get et serious consi consideration con con- si in the next session of ot congress One Oe would give employ employers em ploy r rs the tile rl right ht to call in the theN theN theN N L R B. B The TOe other would make malt the boards board's decisions binding on 01 unions as well as on employers The latter prop proposal al would give protection to the innocent employers employers em era- now caught between two tires Sires But ut the A F L Ij leaders ra are U likely ely to vigorously They dont don't trust the N L R no B B. Besides their attitude is ii that their unions are the only official ones They consider C CIO I 0 unions mere pere in interlopers interlopers in in- This column recently predicted that British financial assistance for tor Italy would be forthcoming as an n unpublicized part of the price paid by Britain for tb the Italian Anglo-Italian treaty A loan Joan hll hanow ha i now been quietly arranged arranged to to the tune of Private bankers In England Engl nd rather than the government itself are putting up the money They are doing so however with the full approval of ot the British cab cab- inet met Insiders understand that the latter has also guaranteed repaY repayment Tent of ot the Joan loan Otherwise Otherwise Other Other- wise the bankers banker would hardly have rated il Ii duce cluce uce a grade A credit risk More financial aid from England England England En En- gland is to be extended as and when the Italians need it But the British prefer to do their helping on the installment basis To the promise of future loans is attached the proviso that Mussolini Musso Musso- lint lini mind his Ps P's and Qs Intentionally or not the limitation limitation limitation limi limi- tation of federal borrowing this month to the refunding of ot o outstanding outstanding out out- t- t standing treasury notes will have an effect on the capital market Lar Large e investing institutions institutions- banks banki and insurance companies especially were looking forward to a big new government issue as an outlet for tor part of ot their huge re reservoir of idle funds This hope has now been indefinitely deferred deterred Their need for tor earnings earnings earnings earn earn- ings is too great to permit this money to remain so it will tend to seek occupation in other channels more eagerly This should help to stimulate successful corporate financing which in turn may give business activity a boost It is an encouraging encouraging encouraging en en- picture except for forone forone forone one important omission There Is Isas Isas isas as yet practically no Incentive to corporations to raise new cap cap- ital Willing borrowers are as essential as willing lenders to bring about credit expansion Some weeks ago this thia column re reported reported re re- ported that the securities and exchange exchange ex ex- change commission was preparing preparing ing to promulgate a new rule of ot great moment to investment houses It would have forbidden investment banking firms to participate participate participate par par- in the underwriting or distributing of new security is issues issues issues is- is sues beyond the amount of their free tree and unimpaired capital This was conceived as a safety first measure to prevent financial financial finan finan- cial houses from jeopardizing their solvency in case the issues they sponsor meet a poor market response This plan has now been quietly quiet quiet- ly dropped Financial men vIgorously vigorously vig vIg- opposed it behind the scenes scenes and and won the support of ot the New York office of the S SEC E C. C The clinching argument was that such a restriction would impede recovery by slowing up the flow of corporate financing to be expected expected expected ex ex- ex- ex when market and business conditions improve Investment bankers pointed out that commercial com corn mercial banks are allowed to loan Joan up to 10 times their capital with government sanction The more New York District Attorney Thomas E. E Dewey de denies denies denies de- de nies he will be a candidate for tor forthe forthe the governorship the more Insistent insistent insistent tent are the political prophets that eventually he will be drafted draft draft- ed and accept His recent indictment indictment indict indict- indictment ment of ot Tammany District Leader Lead Lead- er James J. J Hines lends color to to- their thesis The Hines trial Insiders assert will break into full flower just prior to the Republican state convention convention convention con con- the reaction will wUl seriously seri sen reduce the psychological effect ef effect effect ef- ef of ot his impressive list of prosecuting prosecuting prosecuting pros pros- triumphs Informed opinion however holds strongly that Dewey Dewey- will not slip up He studied the Hines history long Jong and carefully before moving against him Insiders predict predict predict pre pre- dict that he has the goods on the Tammany boss boss' and will be able to deliver Advertising expert author and ancl congressman Bruce Bruc Barton is s a another another an an- other Republican now being seriously seriously se seriously se- se discussed by G. G O. O P. P back- back stagers for the New York gov gov- He was vas head of ot the internationally known advertising advertisIng advertis advertis- ing firm of ot Batten Barton Durstine Durstine Durstine Dur- Dur stine and Osborne and is highly regarded both in New York City and among upstate R Republicans publicans A contest for the nomination between him and Dewey one in influential influential in- in politico remarked would provide an interesting test case case case- the advertiser vs the publicized Copyright 1938 for The Telegram u |