Index

Rising wheat prices rang the speculative tocsin loudly and fiercely last week. Other commodities became buoyant. Good cheer spread to Wall Street.

Although the report that Russia would export no wheat for two years was denied, wheat surged upward. On every recession, buying by the public became more apparent. Seats on the Board of Trade jumped from $6,500 to $12,000. Arthur W. Cutten, greatest of living wheat bulls, became almost a national hero; telegrams poured in upon him asking how high wheat would go. He merely said he was bullish, named no prices. But in the public imagination "Dollar Wheat" became something to be achieved, in some places already achieved (see p. 15).

"Dollar Silver" was another speculative slogan last week, but more far-fetched than "Dollar Wheat." Shorts covering and the general commodity rise sent the metal to 35|f an ounce against the year's low of 25!^. For the first time silver trading on the National Metal Exchange, Manhattan, became clamorous, wild. Public buying was attracted because silver can be bought on a 6% margin. Companies with stakes in silver-currency nations were in demand, shares of mining com- panies were widely bought. Copper remained at 7^ but it was reported that consumers were taking all offerings. Manchurian war talk aided bullishness in copper, but the strongest copper shares were those with big silver interests.

With British mills more active, consumption in October running 69,383 bales higher than a year ago, it was natural that cotton should join the movement, that last week's price of $33.50 per bale should be 22% higher than the year's low. Although the crop is large, unfilled orders for cotton cloth jumped 51.7% during October.

Other commodities to share in the jubilation included rubber, coffee, cocoa, wool tops, hides. Sugar failed to advance, however, and hogs continued in a rut. Mid-Continent oil prices rose 15^ a barrel to 85^; in many sections of the country gasoline was upped.

Despite the whirl in commodities, important indices of trade failed to reveal any fundamental change-of-trend last week. But since business has usually revived after a rise in commodities, many a businessman was cheerful, prone to look ahead a month or so rather than to express dismay over current figures. Iron Age reported steel operations up to 30% of capacity after being at 29% capacity the week before. Steelmen were encouraged by the prospects of a busy automobile industry for the rest of the year, anxiously awaited the results of the year-end rail buying by the railroads. Buying by farm implement makers was expected to follow the wheat rise. During October, steel ingot production averaged 58,977 tons a day, the lowest since 1921.

Shipbuilding statistics showed that on Nov. i, 24 yards were at work on 93 hulls representing 303,000 tons, against 31 yards, 124 hulls, 354,000 tons two months ago.

The Stockmarket's proximity to being on a cash basis was revealed by the report of members' borrowings on security collateral. On Nov. i such loans were at a new low of 2.33% of market value of all listed stocks against 3.23% the month before. On Nov. i there were 1,284 stock issues listed on the Exchange, aggregating 1,318,586,000 shares with a total value of $34,246,649,000 or an average value of $25.97 a share.

Dividend payments of 924 companies during October were off 25% from the same month last year. Thirty-three extra dividends were declared, seven rates were increased, one company resumed payments, 16 declared dividends for the first time. But 90 reduced, 138 passed their payments.

Automobile production during October (as estimated by Automobile Chamber of Commerce) was 86,328 cars and trucks against 158,942 the same month last year. The month's last week was at the phenomenal low of 10,171 units, but the end of November is expected to find Ford and Chevrolet back in high production schedules.

Carloadings for the week ending Oct. 24 showed a slight gain, rising to 769,673 cars from 762,719 the week before, but still a decline of 190,000 from the same week last year.

Building permits for October in 562 cities declined to $96.258,000 from $m,-474,000 in September, compared with $166,680,000 a year ago.

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