Business: Sweet Uses

Last week, as it is likely to be for some time, major influence upon the New York stock market were the inspirational efforts of Washington. Three weeks ago, when the Federal Reserve Board reduced margin requirements, prices rose in the best weekly rally since the smash started. Then they fell back. By early last week the Dow-Jones industrial averages had set a new low of 123.9. Railroads at 31.7 and utilities at 21.3 were almost at their bottoms.

At this point President Roosevelt waved the white flag of truce in the War Against the Utilities (see col. 3). With utility shares in the van, prices once more turned upward. American Water Works jumped to $15.50, up $3; Electric Power & Light to $14.25, up $2; Columbia Gas &Electric to $10.50, up $2; North American to $23.50, up $3.50. Industrial and railroad issues tagged along, U. S. Steel bouncing hastily back from a new low of $51 to $60.50. At week’s end the Dow-Jonesindustrial average was back to 133 and Wall Streeters, eyeing Washington with something like glee for the first time in many a moon, had justification for holding that sweet are the uses of electricity.