STATE OF BUSINESS: That Depression Talk

The stock market is extremely sensitive to talk—especially when it comes from high places. Last week a rash of talk from Washington about the state of the U.S. economy unnerved an already shaky market and sent it into a spin.

The boom-and-bust warnings of Secretary of the Treasury Humphrey and ex-President Hoover (see NATIONAL AFFAIRS) helped start a selling wave that sent the Dow-Jones industrial average tumbling 7.23 points (to 469.96) for the widest single-day break in eight months. The market rallied Wednesday, until a selling surge was set off by President Eisenhower's warning that the Government might have to impose...

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