New York stock market

Title

Language

English

Source

The American Chamber of Commerce Journal Volume XVIII (No. 11) November 1938

Year

1938

Rights

In Copyright - Educational Use Permitted

Fulltext

November, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 27 New York Stock Market (November 10+h) By Numerous conflicting develop ments during the past month found reflection in considerable irregular ity in financial markets. The release of numerous third quarter earnings statements showing rather sizeable losses in many ins tances, uncertainty over the results of the railroad fact finding commit tee, as well as the 1938 fall elections, served to dampen somewhat the bullish sentiment that would nor mally have resulted from the an nouncement of a large contemplated utility plant expansion program. Despite moderate setbacks in some industries, the momentum of the re covery movement has been well sus tained and further expansion over the coming months appears reason ably assured. Pace of the recovery thus far has been one of the most ra pid on record and common sense clearly indicates that the recent rate of advance cannot be maintained in definitely. Some slowing down of the recovery movement, however, should be considered as a favorable rather than unfavorable develop ment, in view of the fact that it may be due to the very conditions that may ultimately bring a more sustain ed and less irregular recovery that might ordinarily be anticipated. Normally, five months of rising in dustrial activity cannot be considered as something that would imperil the recovery movement. Continuation of the rise, however, at its recent rate would mean that the 1937 business peak (which took five years to reach) would be attained within 5 or 6 months—all of which would be quite illogical, to say the least. In short, about the only valid rea son for seriously modifying a cons tructive investment and speculative attitude would appear to be a fur ther over-rapid development of the recovery movement with its conse quent dislocation and disarrangement of the economic structure. Most significant of recent develop ments, insofar as the business re covery picture is concerned, is the National Defence Program. Chief elements on the program, aside from obvious ones of Army, Navy and merchant marine expan sion, appear to be as follows:— (1) a public utility expansion program involving the expenditure of some $3 billions as a first step in strengthening the arms industry areas; (2) a railroad rehabilitation proGlendon B. Loveles Ovejero & Hall gram, in which the sum of $1 billion has been mentioned; (3) industrial plant rehabilita tion, particularly aircraft, automo bile, chemical and heavy industry machine producing plants, with ex penditures tentatively estimated at over $1 billion. The foregoing appears to be the primary purpose of the program. THE MOST COMPLETE LINE OF PUMPING EQUIPMENT, SINGLE STAGE, AVAILABLE FROM OUR MANILA STOCK, FOR VERTICAL, SINKING AND HORIZONTAL SERVICE CAPACITIES Size Type Speed GPM Head GPM Head 4 X 3 SIIH 3500 550 180 300 250 4 X 3 SK 1750 700 150 400 175 4 X 2<Z> SKII 3500 600 275 250 425 3 X 2% SK 1750 325 130 150 145 2 X 2 GS 1750 160 108 100 120 112 x SSUIIII 3500 120 40 50 110 It•> x I'., SSUL 1750 120 35 65 60 2’ •2 x 9 SSL 1750 200 90 100 110 4 X 3 SSN 1750 450 90 150 110 5 X 4 SSN 1750 950 85 500 120 INCLUDING TOTALLY ENCLOSED FAN COOLED, MOISTURE PROOF ELECTRIC MOTORS MANILA STOCK THE EARNSHAWS DOCKS & HONOLULU IRON WORKS ’ 60-118 Second Street, Port Area P. O. Box 282 Manila, P. I. Branch Offices: Tel. 2-32-13 Bacolod, Occ. Neg. Cebu, Cebu The secondary effects are almost in calculable and may become the dom inating market factor, at least over the next year or two. In such an event, the type of reco very from here on, with emphasis mainly on stimulation of the capital goods industries would be vastly dif ferent from the last recovery period when emphasis centered principally in consumers goods industries. The present favorable outlook for business is further enhanced by re cent political trends in which it ap pears that the American people have taken the first step leading to event ual repudiation of the New Deal and its spokesman. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL

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