ANNUAL REVIEW
SECTION,
ANNUAL REVIEW
SECTION,
LAKE COUNTY'S HOME NEWSPAPER
EUGENE, OREGON, SUNDAY, JANUARY 1, 1933.
VOL. 84
NO. I
Victory In University
Fray Crowns Chamber's
Community Activities
City And Surrounding Country Alike Derive
Benefit From Cooperative Approach
On Problems Of Common Interest
with its main objective the organization of the fight against the
forn-Macpherson school moving bill during the last year, the Eugene
ehamber of commerce has completed a year of extensive activity,
reaching Into many phases of the community life, according to the
annual report compiled by E. G. Harlan, secretary.
In addition to the work In the campaign against the school moving
hill the chamber encouraged approximately 20 families per month to
-.ma in this trade territory, bringing a monthly Investment of new
"l7,-, ..Heated At SSO.000 a month.
in leaping into the battle to save
fairs eommuiee uuiuiouua ........... uubwuw ............. ...... -
irt as leaders In the fight' With the installation of headquarters in
tittle Deady hall, the fight was carried on from there with thousands
nieces of literature being distributed, campaign funds solicited and
tatters sent to all parts of the state urging a vote against the bill
defeated by the largest vote ever cast against an initiative
measure n ..7.7.
In leaping raw ' --
ths university, a University affairs
committee consisting of leading Eu
.eae citizens was appointed to act as
leaders in the fight. With the install
ation of headquarters in Little Deady
hall, the fight was carried on from
there with thousands of pieces ol lit
erature being distributed, campaign
funds solicited and letters sent to all
parts of the state urging a vote
against the bill which was defeated
by the largest vote ever cast against
an initiative measure In the history
of the state. .
Second In Oregon
United States department of com
merce statistics show that Eugene is
second in Oregon in amount of money
spent for automotive equipment and
supplies," Harlan's report indicates.
"Eugene Is the hub of a great recrea
tional area and in 1932 the chamber
cooperated with central Oregon com
munities in publishing 10,000 copies
of an illustrated folder describing the
Oregon Cascade wonderland. These
were distributed in southern California
and in Canada. Two pages in book
lets published by the American Legion
carried sttractive scenes of Lone
comity to over 100,000 readers this
past summer. Dozens of Bpecial ar
ticles were supplied lending mngazines
and newspapers which brought the
story of this county's many resources
to the attention of interested read
ers." The chamber cooperated with var
ious rosd building agencies and many
citizens have been employed on pro
jects during the past year which have
amounted to nearly -one million dol
lars. The highway committee of the
chamber has devoted considerable time
in the interests of the city, county and
state. While' there has been a national
decline in the volume of retail busi
ness, Eugene during the past year has
shown above-the-average volume for
communities of this size, it is said.
This has been due partly to the ex
tension of highways and the building
of new roads which have tapped dis
tant consuming areas.
An sggressive year 'round cam
paign by the merchants division has
been maintained during 1032. The an
nual Pet Parade attracted over 1000
ehijriren with their pets from all parts
ef the trade territory. The spring
style show, the harvest festival which
drew over 20.000 people, on the final
day, the holiday program and other
events helped in maintaining a sat
isfactory volume of retail business,
considering general economic condi
tions. Helpful To Agricultural
The chamber took a sympathetic In
terest in agricultural problems. Its
committee helped secure contracts for
certain vegetables bought by canner
ies; it cooperated In securing lower
rates on agricultural lime; it spon
sored many large meetings which fea
tured more profitable production of
Poultry; it assisted in securing branded
sacks for potato growers and pro
moted meetings featuring the grading
ef potatoes.
Some progress was made during
SEE EUGENE CHAMBER STORY
. PAGE 3
Ec onomic Considerations
To Guide World's Politics
In 1933; Major Events Due
By STILTON BONNER
'European Manager, NEA Service)
Thfl fourth vbbk tH h - l i a
W depression and unrest, 1933
JT!S at a yesr of tremendous poten
esllties in world history In which
eonomie considerstlons will dictate
" political courses of nations.
Four major events, three of which
r rle;igned to aid in economic recov
ery, are on the calendar. They are;
WORLD economic and monetary
inference, due to be held In London,
otiteunen from many nations will dis-
the stabilization of exchange, the
lowering of trade barriers and other
"Waal attempts to bring about Im
pror.m.nt. DISARMAMENT conference, by
prosentatire, f 60 nations meeting
Jer L.,.;,,, of yitinB, ,pic.. t
-eva. Though last summer's ses
JMns proved barren of real results.
uter hnp., ,r. htM now m Tiew of
uggestions for trading arms reduc
tion for war debt revision or other
C"nmw considerations.
iJk $ DEBT "vision conferences.
Probab It to be held at Wnrhington.
general economic conditions, plus Ger
nr t refn-al to pny any more repsr-
the v V M m"n7 to Mi" hl
debts j s,"'es mnst reduce war
... V bl European nations as a
thi VE F NATIONS on trial, as
..? I "! Ja',an'' ietinnre bT it
IsW 7 Chin'-e Manchuria and e,.
-Jtimetit of th. dummr "republic"
iiMihoui there, Whether tee
the university, a University af-
OF CITY IN 1932
A strengthening of the general
bond sinking funds of the city of Eu
gene, steady progress toward reduced
expenditures,, retirement of warrant
debt and tax reduction are features
noted during the past year by city
officials.
While no attempts were made to
enter upon enterprises involving in
djbtcdness due to the financial pro.
gram, every care was exercised to as.
sure the safeguarding of the normal
welfare of the city, according to R, S,
Bryson, city recorder. Police and fire
protection have been maintained at a
high standnrd, streets have been kept
clean and in repair, sewers have been
regularly inspected and kept open
and drained, and the general health
of the community constantly regarded.
The only noteworthy changes in city
administration was the resignation of
H. E. Wilder as mayor, with the sue.
ccsslve appointment of Elisha Large
as mayor, and the resignation of R.
W. Hall as chief of police and the
promotion of Carl Bergman to this
post. -
During the year the city purchased
a permanent garbage dump ground
suited for all future needs of the city.
It is located on grounds approved by
the state board of health. Payments
to the contractor for aviation field
improvements have been completed
this year.
"While the year's business cannot
be balanced till the middle of Janu
ary, in general terms it may be said
that the general bond Interest, paving
Intersection, sewer, aviation field and
playground warrant accounts are prac
tically on a cash basis," Mr. Bryson
declared. "On January 1, 1933, the
general warrant debt will be approx.
imntely $56,000, an increase of $3000
over the same date last year. If this
outstanding indebtedness is considered,
in the lisht of uncollected taxes, as
an available asset it places toe gen
eral fund in a most favorable position.
"Uncollected taxes for 1930 and
1931 for the general account total
$00,208, and $7,000 is due the city
from the county street and bridge
fund for 1932. If and when this money
is collected, it will retire all outstand
ing debt and give the general fund a
ensh balance of $11,000."
The general bond sinking fund has
been buTlt up to $311,155.24 during
1932, which, with $7,000 of bonds re
tired during the 'year, leaves a net In
crease in the fund of $28,873.73. Vir
tually the entire sinking fund Is in.
vested in sound securities with a pres
ent interest return of over $15,000
per year. This revenue is all credited
to the sinking fund, i
league can compel observance of
solemn treaties la the Issue.
Economic, disarmament and war
debt conferences doubtless will not be
held unto after President-elect Roose
velt takes office, since his policies will
govern the United States' conrse with
regard to each.
A resume of Important world news
in 1032, Including many developments
which led cp to this program for 1933,
follows.
Japan and China
Determined to smash a costly Chi
nese boycott resulting from Japan's
conquests in Manchuria (which started
in September, lail) the Japanese be
gan bombardment of Shanghai on Jan
uary 28, In defiance of world opinion.
Weeks of fierce fighting were ended
by a truce on May 4, which promised
abandonment of the boycott
Japanese military leaders on Feb
mnry 23 set np the dummy "republic'
of Manchonkuo In Chins's richest agrl
cultural and mineral ares. On Sep
tember 20, Japrn formally recognised
Manrlioukiio as an "independent re
public." No other nation has done so.
After months of Investigation a
League of Nations committee, headed
by Lord Lytton of England, returned
a report Indicting Japan lor aggres
sion. recommended It disgorge Man.
chnukun. Japan, claiming the invasion
SEE
economic issya eft
PAGE ft
EUGENE BUSINESSMEN
VIEW 1933 WITH
HIGH HOPES
H. L Edmunds, president ef U. 8.
National Bank All we need in look
ing forward to the new year is a
little more confidence. The nation as
a whole and Eugene has plenty of cap
ital and an abundance of natural re
sources and all other things that go
to make np prosperity. Here in Eu
gene retention .of the university has
created confidence. We have a diver,
sifted agricultural community sur
rounding Eugene and many attractions
for tourists and home seekers and the
city will continue to grow and just
ness develop.
Darwin Grlstow, First National
Bank In my opinion, the outlook for
1933 is, to say the least encouraging.
We cannot expect prosperity to sud
denly appear; the recovery will natur
ally be slow. There,are indications of
improvement In some of the basic in
dustries, and I believe that the bottom
of the depression has been reached. I
think there will be a decidedly notice
able improvement before the end of
1933, and that Eugene, Lane county,
and the state of Oregon will make a
reasonable advancement thereafter.
W. A. Ayres, manager of Producers'
Publio Market "If business is as
good in 1933 as it has been in 1932,
we will come out all right
T. L. Ohlsen, manager of Farmers'
Creamery We hope for a good year
and particularly do we hope for re
lief for the farmers. I believe we
shall see another year of extreme low
bntterfat prices and that we shall see
but little improvement in agricultural
commodity prices generally. Every
thing points still to a surplus in pro
duction. However, we can look for
slight Improvement next year on sur
plus In that lowered buying power and
consumption will tend to curtail pro
duction. Mayor Elisha Large After contin
uing the city's plan of reduction of ex
penditures, started five years ago, Eu
gene Is now prepared to start the
coming year, taking full advantage of
any upturn and prepared against fur
tlier depressions. Tho city is operat
ing on a carefully trimmed budget and
we expect to go through the year in
good shape. One fnct to be rcmera
bered In the city's affairs is that 55
cents of every dollar must be put Into
the sinking fund investments to caie
for bond indebtedness. Therefore we
have only 45 cents on each dollar to
work on. However, with fair tax
collections next year we see no rea
son to feel pessimistic
George C. Stanley, Ralph and Stan
ley stores Our business during 1032
ran ahead of that of the previous
year every month except December,
which fell a little short of the busi
ness done in the same month of 1931.
Carl 6. Washburne: In contacting
people from various sections of the
state during the past few weeks I
have found a general feeling of optim
ism regarding conditions for the year
1933. While no one feels Justified In
predicting definite improvement in
business, most people express the
thought that with the general ex
treme reduction of taxes by munici
pslities, school districts, port dis
tricts and counties and a definable
Improvement In commodity prices,
chances for the coming year are bet
ter than in 1932. Leaders in business
and industry of the state, I believe,
feel that the worst of the depression
has been passed and that the future
holds some promise of better things.
J. W. McArthur: While I csn see
no reason for great optimism for the
coming year, neither do I feel pessi
mistic regarding things because we
seem to be holding our own, having
reduced overhead costs nnd operating
expenses down to a point where we
are readj to go ahead with efficiency
and confidence. We have been neu
tralising losses through economy and
everyone now seems to be prepared
to take advantage of conditions as
they improve generslly.
I. 0. Holt: "I predict fully as much
business for the new year as there
was In the past year. . . . We are not
contemplating, for the present at
SEE EUGENE VIEWS STORY
PAGE 2
HERE'S A
5lad? IU.S. Fleet TtWtS
C'Ti ' 1 ' I WA. j-WjBfitam Pays on War OwtfK Kl rli LW-
X'Trrrjf J.an""c FT I ' i : -fV1 V-Hl iJJ. Hi 1 1 ii .nfA"l.iU. Britain
U Bombard TUf Mussolini's VT '
fywpvl EV modfigJLi B Jlffi i, X IJOth Vnniversary V l
1 I iRevolulion Civet Mttlco's President I Qv ) JZ, Ljt
fW ffi&gjL L fj5r&r&
SZ , , IfrLfvr V y WTHnncer Strike"h
jj . V? LJ& American
RIDING THE
1923 1924 1925 1926 1927 1928 1929 1930 1931 1932
120 'Hi lLJP.a"r-lA
' ENDOFmif , k .'T )y 11 "v
SQ-yl GERMAN I ;jfV Jf0 1
f fcoLLAPSErj . :, y--E. HSfflffr, :rY
-atr &J lENULANB lOKFlVjJ
fjn V lOQLD STANDARD I Mt
- J iiitM I Co'TmoDITY
O "trma m PRICK LO'Sj
1916 '18 20 22 24 26
I-! Pnst.War Infla-1 I I I I I
Htion and Exports! I I I I I
I Si I I I I I I I
200 -:
I World Surplus
J50 f " " z i Grows Extreme
iOO 1 1 am ii I Depression I
WUr19"J- of 1921 L
I Level ' ' i I 1 I V
Lowest Average
5fJ I I I I I I In 35 Years
It's a great life If you don't weaken. Here are three charts which give you a graphle picture of how
the country haa been "taken for a ride" on the "economle thriller" (you remember the up-and-down
thriller at Coney Island don't you?). The top chart showa the general situation since the war, the
minor slumos of 1923 and 1924, the
1927, then the climb to the top of
1932. Whoosh I Did you lose your rat or your snirtr you win notice we now aeem to do cnmoing
out of the nit. Where bound? Everybody hopes for a nice long, flat plateau. ' On the lower left the
chart ahows what has happened to
has been happening In the stock markets.
YEAR; IMPRESSIVE
By HOWARD W. BLAKE SLEE
(Associated Press Science Editor)
NEW YORK, Dec. 81. OP)
Atom-smashing ot a new kind and
improved social relations are two
foremost dreams of science for 1033.
The first Is becsuse It promises a
golden, though delayed future more
prosperous than anything in history;
the second because It can be of im
mediate relief.
Only a small group of physicists
knows ot the rapid developments in
1932 In atom-smasbing and what
these events portend. The most sur
prising of these was an experiment
which upset the time-honored belief
that you never tcan obtain more
energy from a reaction than you put
into it.
But two British scientists, Dr. J.
D. Cockkroft and Dr. E. T. S. Wal
ton, recently shot a 600,000-volt
atomic particle at an atom, which
thereupon split Into two rays, having
a total of 15,000,000 volts. This atom
gave off 25 times the energy it bad
received.
"Unlocking" Energy Simple
Investigation showed that all the
tremendous additional energy was
something that had been "locked up"
in this atom when It was created. It
was the same mysterious "energy of
the atom" of which philosophers have
been talking for years.
But io this case, for the first time,
the method of "unlocking" was theo
retlcslly as simple as touching a
match to wood to "unlock" the energy
SEE SCIENCE PROGRESS STORY
PAGE 4
PICTURE STORY
ECONOMIC
28 301932
I923 24 25
400
500
ZOO
100
long climb upward to lsze, trie
the peak In 1929 and the terlfflo swoop to the very bottom at midyear
the farmers since 1916, and on the
1832 ACHIEVEMENTS
OF SCIENTIFIC WORLD
NEW YORK, Dec. 81. OP)
Following are highlights of sci
ence in 1032:
Atom smashed by new method.
, First photographs ot proton
msde.
Neutron, new "atomic" par
ticle, discovered.
First protograpbs of genes, he
redity units.
Worldwide cosmic ray study.
Piccard sets altitude record In
balloon.
Worldwide "polar year" sci
ence study starts.
Sun's eclipse yields new radio
knowledge.
Marconi extends range of radio
short' waves.
Possibility of life on Venus In
dicated. Universe seen expanding 15,
000 miles a second.
Einstein says earth 10 billion
years old.
Holidays Create
Thriving Demand
In Air Transport
NEW YORK, Dee. 81. (U.B In
creased travel by air, due to the holi
days, Is reported by officials of Unit
ed Air Lines, on some divisions of
which extra, planes were put Into ser
vice to take care of the demand for
reservations. Extremely mild weather
also brought about Ideal flying condi
tions all along the coast-to-coast
route.
According to figures, Just released
by the air line, the first 11 months of
this year showed an increase In pas
senger air travel by over 110 per cent
as compared to the same period of
1031. More than 84,000 passengers
were carried during thnt period as
compared with 40,000 for the same
period last year. In the month of
November, 0.645 passengers were csr
ried, contrasted with 2.S01 In Novem
ber. 1031.
OF WORLD HISTORY IN 1932
'THRILLER'
PEAK OF
STOCK MKT.
BOOM
HOOVER I
MORATORIUM
26 27 28 29 30 31 1932
I I Just Before I I
IThe Big Crash 1
Era of "Coolidge yl I
Prosperity" I y Mora-
I II I ft f torlum
"RBornC'P 4
Commodity F
''11' Lows f
second minor slump ot i2s ana
lower right the chart shows what
By RICHARD D. McMILLAN
United Press Staff Correspondent
PARIS, Dec. 81. (U.PJ With ten
million homes menaced by the specter
of hunger and want, the 25 principal
nations of Europe welcomed the New
Year with subdued rejoicing, but
buoyed up by the hope that the crisis
of the past three years will pass in
the next twelve months.
At no time In the past hundred
years has the Old World known such
widespread stsrvatlon, yet it Is equal
ly true to say that the end of the year
11132 arrived on a wave of optimism
Inspired by the belief that the turning
point hod been reached.
The 400.000,000 people living on
this side of the Atlantic face 1033
with their minds concentrated more
on political than economic Issues,
holding that developments In the field
of political relations will prove to be
the decisive factor in the solution of
the economic deadlock. The prevail
ing belief is thnt 1032 has shown that
economic measures especially the in
troduction of tariff barriers have pro
duced results contrary to those an
ticipated. Crisis In Many Countries
Instead of alleviating the crisis In
the various countries of Europe, tar
iffs have aggravated the sifliation,
notably In France. The consequence
is that the people look to an all-round
esing of the political outlook.
The eyes of Europe therefore nat
urally turn to the United States to
discover what will be the attitude of
SEE EUROPE OUTLOOK STORY
PAGE 3
Business Sees
Reconstruction Ahead;
Outlook Is Optimistic
Adjustment Of International Difficulties,
Progressive Attitude In Domestic
Troubles Expected In Next Year
By JOHN W. LOVE ,
Written for The Register-Guard .
(Copyright, 1932, NEA Service, Inc.) '
The promise ot the new year Is cheering in one respect: the coun
try Is facing Its realities to a degree
days of midsummer, 1929.
This means that many outfits
have been putting off for a long
as a whole will either give up the
levels or decide Dy a supreme etiori to restore them.
A good deal of the settlement Is already behind us. Compromises
ot debt have been made In several directions and are being made
right along In others. Many debtors now struggling with six per cent
Interest may have their burden noticeably lightened during the new
year.
By CLAUDE A. JAGGER
(Associated Press Finsndal Editor)
NEW YORK. W The bond
market was pulled out of a state of
almost complete demoralisation in
June of 1032, and ended the year at
levels well above its beginning.
In the aggregate, bonds slid back'
ward substantially in the last three
months ot 1032, but there hss been a
marked contrast between the action
ot the gilt-edged Issues, and the more
speculative groups.
With money rates sinking to ex'
tremely low levels call money hay.
Ing its most protracted period at 1
ner cent since 1004 It was small
wonder thnt the very highest grade
Issues ended the year at levels above
even those of 1020, when the country
was so engrossed with stocks. But
the more speculative groups reacted
rather substantially after September,
evidently reflecting the feeling that
corporate reorganisations here and
there would still he needed to reduce
unwieldy debt structures.
The collapse of the bond market
came well along in the depression; In
fact It did not actually start until
wide-spread banking trouble BP'
nenrcd In the summer of 1031, result'
Ing In hnsty dumping of bank In
vestments to raise cash. The hope
that banking difficulties were about
over with the formation of the Na
tional Credit corporation and the Re
construction Finance corporation was
apparent In a fair recovery In bonds
around the start of 1032.
A sweeping decline started In the
aprlng, however, and gained momen
tum as congress tussled with the
budget and Inflation talk was nenrn
Gold flowed out of the country, and
banks continued to liquidate invest
ments to raise funds to pay nervous
rfonosltora. Inauinirat on of the fed'
eral reserve system's program of
heaw U. S. government security pur
chases in April brought only a brief
rallv.
Finally, concerted action was taken
by the leading banking Interests,
which formed the $.100,000,000 Amer
lean Securities Investing corporation
for the announced purpose of buying
bonds. It was well-timed, coming
Just before the outflow of gold ended,
and a federal tax measure was finally
enacted. Bank troubles soon began to
dwindle, and prices surged up swiftly
until September, when the trend DC'
gsn to level off.
All listed bonds on the stock ex
change had a total quoted value of
S30.512.OOO.0OO on December 1, 1031,
By June 1 last this had fallen to 3,
fi.'ifl.OOO.OOO. It bounded up to $40,
072,000,000 on September 1, and on
December 1, 1032, stood at $38,005,-00O.00O.
Stock Market Toboggan
Tendency Is Slowed Up
As Industry Stabilizes
By CLAUDE A. JAGGER
(Associsted Press Finsncial Editor)
NEW YORK, Dee. Rl. OP) The
stock market In 1032 broke away from
the bear msrket psttera of 1930 and
103L
Shares reached the year's top
prices In September, and csme to the
end of the annual period well abnre
the lows of summer. In preceding
years of toppling prices, stocks hsd
followed a saw-tooth pattern carrying
them almost stesdily downward to
new lows for the bear market In De
cember of each year.
Calculated on a percentage basts,
the slump In the early months of 1U32
was one of the most severe In stock
market history, but likewise the spec
tacular upswing from early July to
early September, in which price In
dices gained more than 100 per cent,
was unprecedented.
The total quoted value of shares
listed on the stock exchange tumbled
from $.11,105,000,000 on Dec. 1, 1031,
to $15,03.1.000,000 ss ot July 1, 1032.
The market's quoted value in the next
two months swelled to $27.T.S2.000,.
000. An autumn reaction carried It to
$22,2.M),0O0,0OO as of Dec. 1 last.
From December of 1031 until early
March of this year, the market held
to a relatively narrow trailing range,
and appeared to have established a
definite resistance point sround the
lows of 1031.
Enactment of the GIsss-Hteagsn
measure In February quieted domestic
tears (or tht gold standard, and sv
Orderly
unknown since the gay decepUvs
will be making settlements they
time, and perhaps that the country
Idea ot returning to post-war price
Tiie mack of 1032 Is certain to be
remembered for its Ions' tragedy, not
alone for its unemployment, its da
dine of industry, the struggle with
the national finances, but also for s
false dawn in late summer.
Once prosperity seemed reallv te
be coming back, on the wave of sea
sonal improvement In August, but
some of It faded with the eolor ot
autumn. Then the winter of our dis
contents set in, st the same time that
ways out ot our troubles begin to be
come clearer in front ot ns.
A New Beginning
We must. In a sense, begin ever.
Last spring witnessed the develop
ment of a national program which was
remarkably consistent with Itself.
While a campaign against hoarding
was going forward, the government
formed the Reconstruction Finance
corporation to lend to hard-pressed
railroads, banks and Insurance com
panies, followed it with a Home Loan
bank, and protected national banks
with further privileges ot currency
Issue. The sdministrntion canned it
with a conference In Washington te
Initiate the shorter workweek and
industrial purchasing. Then ws await
ed the coming of prosperity.
It arrived, It seemed, on schedule.
The stock market saw the moat re
markable boom In history (In percent
age gain). Commodity prices rose
rapidly. Money returned to the banks.
Business sctlvlty responded In Au
gust. The boom was on. But the
frost was early.
A permsnent resldlnm of confi
dence was doubtless restored by the
acts and decisions of the first half
ot the year, but the dosing months
ended In disappointment Commodity
prices returned to their old lows, due
largely to the decline of the British
pound and other depreciated curren
cies In prospect of large payments te
the United States on war debt ac
count. As gold moved to this country
foreign currencies were deprived ef
some gpld support, prices in their
countries dropped, end those of oar
prices dependent upon their markets
responded. '(
Trade and War Debts
Yet, It does seem as If almost every
single tough problem would be be
hind us If only s solution for the wsr
debts tangle can be found. When this
Is effected, Internationsl traders will
take heart, business activity will re
turn, and national deficits disappear.
To reorganize Individual concerns
while this Is taking place nationally
and Internationally la likely to be the
main task of the new year.
The course of employment was
downward through most of 1032, with
a slight improvement In early fall.
The same description answers for In
dustrisl production. The yesr's close
completed s fonr-yesr decline In for
eign trade, at tha end of which ex
ports were running about one-third of
102S. Yet gold production. United
States and foreign, was rising, a har
binger of better times.
Let ns look at some of the Indus
tries. Electric power production bad
been the last to yield to depression,
but by spring It was rapidly declining,
reselling a low point In July. Steel
production was irregularly downward
8EE BUSINESS STORY
PAGE 2
the market s sweeping rally. The list
finally reached the beat levels of the
esrly months of the yesr on Msrcb fi,
Just a week before the spectacular
suicide of Irsr Krsuger.
The death nf Kreuger and tha sen
sational disclosures which followed
proved an unexpectedly severe blow
to confidence, particularly since it
came at a time when Wall Street
could see clearly that the spring re
covery in business would be meagre.
About a month after Krengsr's sui
cide csme the Insult collspse. In the
meantime congress was having no
success balancing the budget, bank
closings were numerous, and s fresh)
outflow of gold got under way.
In April and May the decline Is)
shares wss precipitous. Somewhat
earlier In the spring various moves
against bearish activity had brought
only momentary rallies.
In June came an end of the gold
outflow, the formation of the $100,4
000,000 banking pool to buy bonds,
the enactment of a federal tax maa
sure, and abroad the Laussnne egress
nient. An esrly June rally was inter
rupted by banking worries In the ln
tarlor. but by early July the market
was able to turn definitely upward.
After two months of steeply rising
prices It becsme apparent that the ad
vance had far outstripped any prob
able near term Improvement In com
porate earnings, and the bitter ns
tlonal political campaign became sn
unsettling factor. Toward the end of
the year, however, the market still
had roughly, halt Its rally.