Shanghai, May 4.
General:—All the Dow-Jones averages for industrials, rails and utities broke sharply last week due in part no doubt to a growing realiza-Mien that silver legislation was apparently as far off as ever. Hesitation was also engendered by the fact that the Fletcher-Rayburn Bill was to go before Congress some time within the following week. The Dow-Jones average for the industrials broke through 100 for the frst time since January.
It is felt' in certain circles that the Government intends to pursue a more orthodox financial policy than has been the case during the _past year, The success of its conversion of $1,000,000,000 of Liberty Loan 4%, per cent. bonds on April 19 was apparently taken as an indication that Wecould successfully finance the greater part of the emergency opera-Nous of the "New Deal" by new] bond issues. The Administration has apparently felt that its monetary] policies to date have not been Sucegssful as it had wished in raising commodity prices and that the severe fluctuations in the currency caused by these methods had tended to hinder rather than help general business. The: pronounced. rise business activity experienced during! the past three months has been such that Washington apparently felt that thad gained sufficient headway to continue its upward course without the need of more artificial—ati-
Text read from the printed page and cleaned; old type leaves the occasional error.