Show news BEHIN THEN tate ea by V released by western newspaper union STOCK MARKET BREAK HINTS END OF inflationary TREND NEW YORK they said bad news from abroad caused the stock market to skid As they put it the international news was a cautionary speculative and investment element yeah it was cautionary to the extent of a maximum 17 point decline that day actually the news was not then much worse than it had been for weeks although a radio commentator ano whose h se views are rarely accepted on anything except births had announced 48 hours earlier something about us having war with russia by january I 1 or some thrilling date other accounts of the break claimed it was psychological taa lat they did not say what it was psychological ch of when I 1 sought out an extraordinarily objective authority to get the inside on the situation asking what in the world happened to the stock market I 1 obtained the pithy explanation it broke yet from this and other sources I 1 was able to obtain some fresh understanding of the cautionary state of the financial mind clearing up some matters which have not been publicly understood namely these following suggestions and conclusions maybe the inflation Is not going to be so inflationary after all perhaps the he stock market is hewing downward to a level which can be established out of 0 the unprecedented volatile economy in which we have been soaring lately maybe we are reaching for some stability who can say SHARE PRICES LAGGED now some financial elements have been complaining that the inflation so far has taken the stock market up less than anything else these people claim wages and i i prices have risen more than profits I 1 or at any rate more than the selling price of stocks you can get nearly any kind of an answer you are looking for along this line but mostly yes if you take a tomato and general motors stock and select your comparative period advantageously you can show the tomato price has doubled and trebled whole general motors has not gone anywhere comparable in general there may be some truth in the supposition that stocks have experienced perien ced less of a price inflation than much goods this Is not an unreasonable assumption because the profits of general motors certainly have not swollen to the same extent as foodstuff sand materials yet when automobiles are produced and sold to full capacity general motors will do the business and probably at a profit and when you get enough tomatoes the price should come down so in this instance you can see this nation is in a unique alque and temporary condition indeed it is practically a miracle that in the midst of 0 an abundance of 0 favorable economic factors with a shortage of goods a national income of where we got along on before prices and wages went up a plentiful supply of money a public demand for everything then at that time the stock market breaks it never happened before SOME STRANGE FACTOR my suspicions naturally were directed toward the possibility that some factor had entered the situation which was little known this they say with authority Is impossible perhaps some foreign government Is carrying on an attack upon our system at its financial core impossible A bundle of our stocks is held in amsterdam and a smaller haq wad in england but no foreign nation has sufficient clent to sta start rt a selling wave particularly not the soviets could there be anything political in thus signalizing signal izing financially the opening of a hard congressional campaign for the administration the answer was its too early and who could do it at any time actually it would be nearly impossible to do because of the broad and scattered ownership of stocks in this country today no one has enough of them to do anything with them you have to get back then to the conclusion that the stock market has begun to suspect the inflation can be stopped and stabilized it may be skittish justly also about prospective profits certainly production is not satisfactory few think the break will continue to more alarming proportions but it if it does the knowledge will grow that this country cannot stand another depression now england has tried to buy herself out of a bankruptcy caused by her high debt by purchasing industries thereby increasing the government debt improving proving working conditions which increase costs of operation and thus increase prices but not profits economists in this country seeing the error of those ways want to keep what we have but make tt it work that is i the problem |