Shanghai, June 1.
The confusion resulting from the Supreme Court decision on Monday the N.R.A. in certain essential features was unconstitutional caused heavy liquidation especially of industrial issues in the subsequent trading sessions before the markd closed for the Memorial Day holiday and the Dow-Jones average for this group recorded its widest two day decline (or the year to date. Rails also reacted sharply but. uillities advanced to their highest level since October fon the assumption that the ruling would force drastic modification of the proposed Wheeler-Rayburn Regulation Bill: Commodities were heavy losers on fears lest the Government crop control plans would have to be modified. Grains were particul. arly weak because of belter crop conditions and rubber suffered from the uncertain European monetary situation where a gold run on the Bank of France is occurring.
The opinion of the Court in brief 33 that Congress cannot unreserved lly delegate its legislative powers to the executive branch and that merely because a business which is primarily intro-state has some interstate aspects does not make it subject to federal as distinguished from state control. This ruling apparently invalidates most of the New Deal programme but despite the likelihood of some increased competition, price cutting, uncontrolled {production and wage reductions which may result in labor troubles, it is business from undue Government regulation is an extremely bullish long Neem factor.
The market in Figures:
Thursday Wed'day
Text read from the printed page and cleaned; old type leaves the occasional error.