Evening star. [volume], October 25, 1931, Image 63

About Evening star. [volume] (Washington, D.C.) 1854-1972

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Part 6—12 Paget
WASHINGTON LEADS
IN RAISING MONEY
FOR BANK CREDITS
District Is First Large City
| to Announce Full Quota
Raised.
[TOTAL SUBSCRIPTIONS
i ARE NEARLY $4,000,000
local Unit Will Soon Be Ready to
Act on Loan Applica
tion!.
BY EDWARD C. STONE.
Loral bunker* were elated yesterday
over reports that the unit of the Na
tional Credit Corporation formed here 1
Friday night was the first large city i
•ssooiatlon in the country to announce j
100 per cent subscription to the huge i
credit pool being raised to strengthen
the banking situation in aections where
funds are needed for use until frozen
credits can be thawed out. Not only
did every bank in the Capital join in
the national movement, but each one
subscribed as large a sum as permitted
by law.
Washington banks subscribed almost
•4.000.000 to the cause, to be exact
43.939.262. Such quick action is bound
<to have a stimulating effect on other
sections of the country now organizing
their associations. It is also considered
worth more than passing comment that
while the full quotas were subscribed,
yet the Capital will probably make less
use of the national fund than any
other city in the country. The big
lund raised here will be almost wholly
borrowed elsewhere.
In a few days the local unit of the
National Credit Corporation will be
ready to receive and act upon applica
tions for funds. The nine local bank
presdents composing the Loan Com
mittee of the association, have already
organized by the election of President
H. H. McKee of the National Capital
Bank as chairman. He is also chair
man of the Clearing House Association,
which in joint session with the District
Bankers’ Association, organized the
District of Columbia Unit, after much
hard preliminary work by Robert V.
Fleming.
It was Intimated yesterday that such
fine progress is being made elsewhere
In the fifth reserve district that the
District as a whole may also be ahead
ml the other 11 in completing all unit
•rganizations.
Auditor's Section Opens Season.
The auditor’s section of the District
Bankers' Association held its first din
ner meeting of the year at the Press
Club Thursday evening, with Arthur J.
linn, controller of the Federal-Ameri
can National Bank A Trust Co., pre
siding as the new chairman. The
enalrman outlined the plans for the
gear’s work and announced a tentative
program. John N. Higgins, of the Fed
•ral-American Bank’s auditing depart
ment. presented a paper on “The Na
tional Credit Corporation,” which
proved highly inlormative.
It has been arranged so that more
employes of the auditing departments
of the local banks may attend the
section meetings this year if they care j
to do so. The attendance at the first |
meeting indicated that many more i
bankers are planning to take part in
the section s activities during the com
ing months.
Trust Shareholders Increase.
The quarterly report of Massachusetts
Investment Trust has been received by
A S. Goulden A Co., investment bank
ers. It shows that the number of share
holders and shares outstanding have
rontinued to grow ever since the de
pression started two years ago.
On October 20. when the last quar
terly dividend was paid, there was also
• announced by Massachusetts Investors’
’Trust the absorption of another trust,
A with assets of about $4,600,000. 50 per
.jeent of which was in cash. This ab
sorption will therefore give Massachu
setts Investors' Trust an outstanding
paid-in capital of about $30,000,000.
The report states that, aside from
small current bills, the trust has no
debts or liabilities. The securities in the
portfolio are paid for and no money
has been borrowed.
Miller Orders at New Teak.
The Board of Directors of the Miller j
Train Controi Corporation held a regu
lar meeting in the company's office at |
Staunton. Va., Friday.
Vice President and General Manager
Wilier reported unusually good business
lor the past quarter.
It was reported that the signal lights i
et Massachusetts and Wisconsin ave- j
rues, in Washington, have been com- j
pleted and are gi\ing satisfaction This
Is the second installation in Washing- j
ton. the other being at Wisconsin ave
nue and Macomb street.
Heard in Financial District.
Probably no person was more shocked
over the tragic death of Harrison Nes
bit. the Pittsburgh banker killed the
other day on his way to laurel, than
Peter A. Drury, former president of the
Merchants’ Bank & Trust Co. They
were the closest of friends, and when
Mr. Harrison was connected with the
Treasury Department as a bank exam
iner. thev lived in the same block Mr.
Harrison made a wonderful record in
building up the Bank of Pittsburgh, only
to lose it in the crash which claimed so
many other banks.
The Federal Reserve Board announces
that the Kansas City Reserve Bank has
raised its rediscount rate from 3 to 3 1-3
per cent. The Richmond Bank's 4 per
cent rate is still the highest in the
cc untry.
It is believed that the higher redis
count rate now prevailing in most all
the Federal Reserve districts will bene
fit the banks and at the same time
place no extra burden on business.
Yesterday’* Exchange Session.
On the Washington Stock Exchange
yesterday Potomac Electric Consolidated
6s were in the best demand m the bond
division. Stocks were quiet, selling
around recent levels. The day's sales
National Mtge. A Inv. pfd.—loo at 4.
People* Drug Stores pfd —3 at 90.
lans ton ’Monotype — l at 76.
Washington Gas 6e “B —sl,ooo at
4 102 Vs-
Washington Oas 6s “A"—$1,000 at
100 s *.
Mergenthaler Linotype—s at 65. 5 at 65.
American Security A Trust Co.—2 at
291.
Washington Railway A Elec. pfd.—2 at
94
Potomac Electric 6 r ; pfd —3 at 103> 2 .
Potomac Electric Cons. ss—sl,ooo at
101. SI,OOO at 101, SI,OOO at 101,
SI,OOO at 101.
The unlisted securities were called oft
during the session, but no price changes
®f importance were noted
• Washington Clearing House figures
for Saturday. $3,115,772.95.
News of Markets
Pages 1 to 4
Rail Pool Tried in France
Interstate Commerce Commission's Plan to Rehabili
tate V. S. Carriers Is Similar to Arrangement
Made Ten Years Ago at Paris.
BY DR. MAX WINKLER.
Special Dupitrh to The Star.
NEW YORK. October 24 —The re
cent decision of the Interstate Com
merce Commission in reply to the re
quest of the United States transporta
tion systems for an increase in freight
rates includes, inter alia, the sugges-
Uon that Increased revenues resulting
from the proposed advance in rates
should be pooled and utilized to assist
the weaker roads, primarily in order to
enable them to meet their fixed charges.
A somew'hat similar arrangement was
put into effect in France almost exactly;
10 years ago and. since many French
railway issues are owned by United j
States investors, a review of the French
railway act at this time should be of
interest.
By a law passed on October 29. 1921.
the relations between the railroads of
France and the government were modi
fied in many respects. This law, in
some of its provisions, resembles the j
United States transportation act of
1920. It provides for the creation of a
central organization representing all the j
railroads, and is designed to facilitate
co-operation between the roads, as well
I as between the railroads and the state,
I
UPSWING IN STEEL
PRODUCTION SEEN
Trade Circles Expect In
creased Activity During
Next Few Weeks.
Special Dispatch to The Star.
PITTSBURGH, October 24—Of
course the steel trade is interested in
its future, but it is not paying as much
attention to that aspect as might be
supposed. It is very busy watching
costs minutely and it is considering
the future from a different viewpoint
than usual, paying more attention to
the general business and financial sit
uation and less to the current flow
of orders.
Steel makers feel they must watch
every penny, and this means a great
deal of work. In the first place, co6ts
in general must be pared as much as
possible, and in the second place costs
must be considered in the particular
light of orders being small individually,
in most cases for very prompt ship
ment and in general coming in very
irregularly. While there is no price
competition, steel prices being the most
rigid in the whole history of the steel
market, there is what Amounts to com
petition in the expedition with which
orders are filled.
Some of the economies now being in- ;
troduced will be helpful when the steel
Industry becomes busy again, others will
be abandoned W'hen the peculiar cir- |
cumstances of Jhe present disappear.
Steel production in the Chicago dis
trict decreased 3 or 4 points this week,
while the Youngstow’n district had a
greater drop to below 20 per cent.
The Pittsburgh district has shown great
uniformity, holding approximately to a
25 per cent rate since early Septem
ber, while there is not much differ
ence in operating rates of the individ
j ual producers. Total production of the
i steel industry in September was at 28
I per cent of capacity, while each of
■ the last two w'eeks has averaged about
1 point drop, making 26 per cent a
tair estimate for the week now ending
The opinion expressed in some quar
ters that there night be an increase
In steel oroductlon in the next few
weeks has gained ground, the argu
ment being that when there was no
Autumn increase there is correspond
ingly little or nothing to lose as the
end of the year is approached, while in
four individual items there are pros
pects of more activity, in steel for
the automobile industry, the farm im
plement Industry and the tin plate in
dustry and in rails. There has been
almost no rail production lately and
some releases on old orders are fully
expected for rolling to begin about the
middle of next month. The tin plate
industry has just made a small start
making stock in anticipation of next
seasons requirements, this merely bal
ancing a seasonal decrease in current
requirements.
(Copyrirht, 1931.)
SALES GAIN NOTED
BY WEEKLY SURVEY
Steady Improvement Since First of
I
I Month Reported by Fairchild
Publications.
■ -
By the Associated Press.
NEW YORK. October 24—Retail
sales throughout the country showed a
further slight improvement, according
to the weekly survey by the Fairchild
publications. Sales have improved
steadily since the beginning of the
month. October sales to date make a
j slightly more favorable showing with
j 1930. than September, as compared
j with September. 1930
October sales to date hardly show a
decrease greater than 7’ 2 to 10 per cent
below October. 1930, as compared with
a decline of 14 per cent in September
as compared with September. 1930
There has been an actual increase in
the number of units sold In October to
date above a year ago, due to the lower
retail prices.
Retail prices are still tending down
ward The index as of November l
should show a new low in the present
deflation.
'tobacco prices lower
ON FARMVILLE MARKET
By the Associated Press.
FARMVILLE. N. C.. October 24
(United States Department of Agri
culture)—With Tobacco offerings on
the Farmville, Smithffeld, Washington
and Williamston markets heavy in vol
ume on Monday and lighter the rest
of the week, except on Friday, prices
per grade averaged slightly lower this
week than last.
Some leaf, however, sold as high as
S7O per 100 pounds
The official grading service of the
Federal and State Departments of
Agriculture said offerings consisted of
about 84 per cent leaf grades. 4 per
cent cutters ana 12 per cent lugs, which
Included about 4 per cent lemon sides.
40 per cent orange. 3 per cent ma
hogany. 1 per cent mixed and 12 per
cent green. ,
Offerings this week were better in
quality than earlier in the season. There
was not a sufficient quantity of the
best grades, however, to establish an
average.
FINANCIAL AND CLASSIFIED
©he JSumlay filar 1
| for the purpose of effecting a financial
; solidarity which will assure equilibrium
or balance between the revenues from
traffic and the expenses and charges of
j the roads.
Scope of Authority.
The central organization is known as
the “Conseil Superieur des Chemins tie
Fer" supreme council of railways).
This council is charged with au
thority over the railroads in all such
matters as the construction of new
lines. electrification programs, the ac
j quisition of rolling stock and the allo
' cation and use of the same, regulation
of train service and oiiier matters In
connection with the operation of the
roads. It also acts especially in fixing
rates and charges for passenger and
| freight traffic, subject to the approval in
! all cases of the minister of public works.
A joint fund is created, the revenues
of which are derived from the surplus
earnings of the roads themselves. This
! surplus is determined as follows: Each
road shall pay out of its operating reve
nues its operating fixed charges (in
terest. amortization, etc.) and dividends!
on its capital stock, less any payments
i or reimbursements from the state, the
(Continued on Fourth Page)
I -
Loan Chairman
LOCAL BANKERS SUPPORT
BIG CREDIT MOVE.
JH
ik. fc
H. H. McKEE,
President of the National Capital Bank,
who has been elected head of the com
mittee directing the District of Colum- ;
! bia unit of the National Credit Cor- j
poration, formed to handle the immense !
bank pool being raised to strengthen j
i economic conditions. Mr. McKee is:
chairman of the Washington Clearing
House Association. The local banks
| have joined the drive 100 per cent
' strong, subscribing $3,939,262.
ORDERS FOR LUMBER
EXCEED PRODUCTION
Gain in Sales Puts Figure 2 Per
Cent Above the
Cut.
With no marked change in the pro- ;
duction level, lumber orders rallied j
from the slightly unfavorable ratio of
the previous week and were approx
imately 2 per cent above the cut during
the week ended October 17, it is in
dicated in telegraphic reports from 811
leading hardwood and softwood mills
to the National Lumber Manufacturers’
Association. Shipments of these mills
were 6 per cent above their production,
which amounted to 173.869.000 feet for
the week. A week earlier 834 mills re
ported orders 3 per cent below f and
shipments 9 per cent above a combined
production of 175,799.000 feet. Com
parison by identical mill figures for
the latest week with the equivalent
period a year ago shows —For softwoods,
464 mills, production 31 per cent less,
shipments 29 per cent less and orders
34 per cent less than for the week in
1930: for hardwoods. 217 mills, pro
duction 35 per cent less, shipments 17
per cent less and orders 6 per cent
under the volume for the week a year
ago.
Lumber orders reported for the week
ended October 17, 1931. by 575 soft
wood mills totaled 155.105.000 feet, or 2
per cent below the production of the
>ame mills. Shipments as reported for
the same week were 163.401,000 feet, or
3 per cent above production. Pro
duction was 158.387.000 feet.
Reports from 257 hardwood mills give
new business as 21,677.000 feet, or 40
per cent above production. Shipments
as reported for th“ same week were
20.591.Q00 feet, or 33 per cent above
production. Production w r as 15,482.000
feet.
Reports from 490 softwood mills give
unfilled orders of 518.459.000 feet on 1
October 17, 1931. or the equivalent of
11 days' production. This is based
upon production of latest calendar year
—3OO-day year—and may be compared
with unfilled orders of 511 softwood
mills on October 18. 1930. of 776.720,-
000 feet, the equivalent of 15 days' pro
duction.
i The 424 identical softwood mills re
port unfilled orders as 506.491.000 feet,
or the equivalent of 11 days' average
production, on October 17, 1931, as
compared with 739,058.000 feet, or the
equivalent of 16 days' production, for
the sam? week a year ago. Last week's
production of 464 identical softwood
mills was 146.316.000 feet, and a year ,
ago it was 213.523.000 feet: shipments »
were respectively 150.533.000 feet and .
210,816.000. and orders received 142,-
997.000 feet and 216.697.000. In the
case of hardwoods 217 identical mills
reported production last week and a
year ago 14 404.000 feet and 22.151,000;
shipments, 18.842,000 feet and 22,669.-
000, and orders, 20,004,000 feet and
21.335,000.
UPTURN IS FORECAST
FOR REST OF YEAR
Special Dispatch to The Star.
BOSTON, October 24 —The October ,
upturn continues to be of seasonal pro- !
portions, says the United Business Serv
ice. This Improvement contrasts sharp
ly with the poor record of September,
in which the volume of trade was esti
mated to be 32 per cent below normal.
Commodity prices are now firmer, car
loadings have shown an encouraging
upturn and adjustments continue to put
industry on a stronger basis. Unless
foreign conditions become worse, the
course of business during the remainder
of the year should be slightly upward.
WASHINGTON, D. C., SUNDAY MORNING, OCTOBER 25, 1931.
'STOCK PRICE GAINS
LAID TO IMPROVED
BUSINESSOUTLOOK
Securities Markets Respond
Quickly to Signs of Re
viving Industry.
RECOVERY IN COMMODITY
VALUES HELD NOTABLE
Liquidation on Exchange Dries Up
as Better Sentiment Makes
Appearance.
BY C HARLES F. SPEARE.
1 Sppcinl Dispatch to The Star.
NEW YORK, October 24.—T0 have
behind us the period of hysteria, with
its loss of faith in institutions and in
values, is a distinct gain even though
there is little supporting evidence in
the statistics of business and banking
that a change for the better has oc
curred.
Sentiment has improved throughout
the country. More confidence prevails
abroad. Liquidation has been suspend
ed so that the markets for securities
are higher than they were a week ago.
In some of the prominent commodities
• sufficient recovery has occurred to raise
the present values of farm products
$400,000,000 over those of early Oc
tober.
The public that buys and sells stocks
and bonds, that trades in staples, pro
duces and distributes raw materials
and manufactured goods here and else
| where throughout the world is now
* waiting for a consummation of the
plans of an emergency character that
have been recently prqjnulgated, as well
as for the results of the momentous
conference now- taking place in Wash
ington between the President of the
United States and the premier of the
French Republic.
Industry Shows Strength.
While there have been many corpo
ration dividends cut or omitted this
week, these have not applied to the
shares of important companies. In
general, they represent the effects of
j losses in' operating income and in the
income from investments of many com
panies that were formed during the
boom period to make money easily
from an advance in securities. The re
sources of the substantial American
corporations have been affected com
paratively little. Some of them today,
at the end' of two years of the severest
losses in gross earnings ever experi
enced, show’ an extraordinary ratio be
i tween assets and liabilities. This fact
|is likely to persuade the directors of
; the United States Steel Corporation
; r.ext week to declare the regular divi
| dend of $4 a share on their common ■
stock and to Justify the management j
of the Bethlehem Steel Corporation in
sharing some of its reserves with its
stockholders.
The General Motors Corporation has
just presented a statement as of Sep
tember 30 which shows cash, United
States Government and other market
able securities amounting to $264,000,-
000. This is an increase of $85,000,000
since the end of 1930 and is nearly
$95,000,000 in excess of the present
market value of General Motors 5 per
cent preferred stock. The financial
status of other representative corpora
tions, sucn as American Telephone &
Telegraph, Atchison, Topeka & Santa
Fe, Union Pacific, General Electric,
Consolidated Gas of New York and
Standard Oil of New Jersey, to name a
i few, demonstrates tire soundness of the
i industries which they represent and the
strength of the corporate structure of
the country. It is significant, too, that
in the midst of the most serious de
pression of the last half century there
have been relatively few important
mercantile failures, though the mortal
ity figure among what might be called
the parasites on business have reached
an astonishing total.
Freight Rate Decision.
The chief incident this week, and the
one that has had most effect on se
curity prices, was the decision of the
Interstate Commerce Commission in the
15 per cent freight rate case. This ar
rived at the end of a day conspicuous
for the strength of railroad shares. It
bluntly denied the request for an in
crease in tariffs and supported the com
missioners’ refusal by arguments that
will be generally acceptable. It did not,
however, as in other cases of the same
sort, abandon the carriers in their hour
of need, but made a novel proposal to
which there was resistance in some
quarters but subsequent acceptance of
the spirit of the commission's sugges
tion.
Public opinion strongly supports the
commission in its denial of a rate in
crease that would have been eco
nomically unsound and of doubtful
value to those by -whom it had been
proposed. It also sustains this body in
the form of recommendation made.
This is in line with the times and,
in a sense, supplements the method by
which relief is to be extended by
strong banking institutions to those
that are unable to carry the load which
the depression has placed upon them.
It is never quite agreeable to a strong
i and well managed corporation to dig
down into its pocket and assist a poorly
constituted competitor out of his diffi
culties. These are times, however, when
the emergencies are similar to those
in a war period. It is the common
good, rather than individual stability
and satisfaction, that must be consid
ered. In such circumstances it is ap
parent that the letter of laws. as. for
! instance, the Sherman anti-trust meas-
I ure. is carefully avoided by those who
emphasize its features under different
conditions.
The generally held opinion of the
Interstate Commerce Commission is
that it proceeds on the theory that the
shipper is right and the railroad is
I wrong and works toward a steady lev
, eling down of the average of rates,
i There may have been justification for
this verdict out of decisions rendered
in the past. A careful analysis of its
latest opinion disputes the claim that
the commission is antagonistic to pri
vate management of steam transporta
tion. for it makes a number of con
structive suggestions and, for the first
time, shows an appreciation of the
change in public attitude toward rail
road credit. It is for this reason that
friends of the railroads hope that they
will accept the pooling proposal of the
commission and thereby gain the prac
tical advantages of it and avoid threat
ened receiverships. This friendly atti
tude also will give them a standing
with the public and its representatives
ill Congress, making it easier for the
carriers to obtain support for measures
affecting the rate structure, consolida
tions and. pehaps. wages, to be brought
forward for discussion later on.
(Copyright, 1931.)
SILVER QUOTATIONS.
NEW YORK. October 24 (JP).— Bar
silver easier and lower at 29^.
THE INDIAN SUMMER VISION 1
tttrc! (VJtJGET
(Copyright. 1931.)
DROP IN RETAIL FOOD PRICES
RAISES DOLLAR VALUE TO $1.39
The retail purchasing power of the ■
! American dollar, as far as foodstuffs j
i are concerned, is 39 cents greater than
!it was in 1925, according to figures j
i compiled yesterday by Ethelbert Stewart,
commissioner of the Labor Department's
Bureau of Statistics.
In computing the retail purchasing
power of the dollar at $1.39, the com
missioner said that since December, 1929,
the dollar’s purchasing power has in
creased 37 cents. He affixed the whole
sale food purchasing power of the dol
lar at $1.40.
The base of these index numbers, or
100, was December, 1925, and the avail
able data show that for almost three
years both the retail and wholesale food
purchasing power increased only 2.8 per
cent. Two months after the Wall Street
crash in 1929. however, the dollar be
gan to increase steadily in value until
now is it only 8 cents less than in 1914,
the year the World War began.
Drop in Wholesale Prices.
Commissioner Stewart said the pres
ent industrial depression has played no
favorites and, therefore, the purchasing
power of the dolar in cost of living, as
between December, 1925, and June, 1931,
has increased only 18 cents.
He pointed out that during the five
and one-half years wholesale prices of
all commodities fell approximately 35
per cent, but during the same period
the cost of living of the workingmans
family—made up of many items besides
f oO d_fell only about 15 per cent, and j
still more significant to the workman, j
the total amount disbursed as wages in ;
manufacturing industries dropped al
most 40 per cent.
“This decrease of 40 per cent in paj
roll does not mean, of course, that in- j
dividual wage rates were cut in such j
oroportion.” the commissioner explained. |
“Most of the decline was due to the (
discharge of employes, to the prorating
of jobs, and to short-time work. But it
does mean that the income and conse- j
quently the purchasing power of em
ployes in manufacturing industries as a i
whole was less by 40 per cent than it ;
was in 1925, as the widespread charac
ter of the depression leaves no reason
to believe that workers dropped or pro
rated in manufacturing industries could
obtain Jobs elsewhere.
“This series of events, may also be
looked at from the angle of what hap- j
pened to the purchasing power o? j
money during the period of five and
one-half years. Because of declining
prices, the purchasing power of the:
dollar, of course increased. In terms
of wholesale prices, the dollar of 1925
in purchasing power $1.48 in June,
1931, but in terms of total cost of liv
ing the dollar purchasing power in
creased only sl.lß.
“There are thus, in actuality, two dis
tinct “dollars” —the dollar of commerce,
or the wholesale dollar, which increased
its value by 48 cents during the period,
and the dollar of the home, that is,
the cost-of-living dollar, which in
creased in value during the same period
only to the extent of 18 cents.
Declining Pay Rolls.
“Meanwhile, as the number of dol
lars which the workers, at least those
in the manufacturing industries, had to
spend had shrunk, as noted, by some
40 per cent, the workers attached to
manufacturing industries, taken as a
whole, had suffered far more from de
clining pay rolls than they gained from
lower prices on the things they had to !
buy. their net loss being roughly 30 per I
cent. Similar detailed information for |
other groups of industrial workers is
not available, but such as is available
indicates that the situation of most
other groups of workers has been little
if any better than manufacturing.
“Pood, which has fallen so sharply
in price, is the largest single item in the
workingman's budget, but after all it
represents on the average only about 38
per cent of his expenditures, and the
other things which he must buy have
shown no such sharp price declines,
with the result that the index for the
total cost of living has lagged far be
hind the food index.
"Thus, while clothing prices had de
clined, the price index in August. 1931,
was still above 86. and the indices of
rent and fuel and light were well above
80. Moreover, the index for the group
of items classed as miscellaneous, in
cluding such diverse things as street
car fares and doctor's fees and repre
senting some 21 per cent of the ex
, penditures of the average workingman's
family, was actually higher in 1931 than
it had been in December, 1925.
Change in Coats.
“Stated in another way. the change
in the cost of living of the family, as
between December, 1925, and June,
I 1931, was:
I “Pood decreased 28.5 per cent, clothing
decreased 13.8 per cent, rent decreased
15 per cent, fuel and light decreased
11.5 per cent, house furnishing goods
decreased 17.4 per cent, miscellaneous
items increased 1.5 per cent.
“The weighted average decrease of all
items was 15.5 per cent.”
DECREASE IN BANK
DEBITS REPORTED
Decline for Institutions Outside
New York City Due Partly
to Holiday.
Weekly business indicators available
to the Commerce Department through
the Survey of Current Business for the
w'eek ending October 17 show that
bank debits, outside New York City, de
creased materially from the week j
1 previous, due. in part, to the shorter ;
business week in several financial !
centers.
“Total loans and discounts of Fed
eral Reserve member banks.” the de
: partment survey’s summary said, “were
I slightly under the week previous and
j about 19 per cent under the corre
| sponding week a year ago.
“Interest rates on call money in
creased after twenty weeks at the same
level, the average index for the week
being 58.2, against 48.5 for the same
: week last year. Time money rates in
creased over the previous week, reach
ing the high level of the year estab
lished during January and February.
The average price of representative
1 stocks increased slightly from the pro
, ceding week, but were 46 per cent under
the same week in 1930. Bond prices
continued the decline which has been
: under way since the second week in
1 July, reaching the lowest quotation for
the year. Number of business failures, !
i a£ reported by R. G. Dun & Co., j
increased as compared with the week
previous, and were about 16 per cent
over the number of failures reported
for the same week last year.
"Wholesale prices, as measured by
Fisher's composite index of 120 com
modities, increased fractionally from
the year's low. Prices of agricultural
products continued to decline, reaching
a new low for the year, and 36 per cent
under last year. Prices of non-agricul
tural products increased fractionally,
but were almost 13 per cent under the
same week last year. The price of
cotton middling Increased slightly,
while the price of electrolytic copper
remained at the same level as for the
preceding week. The composite iron and
steel price for the week continued to
decline, reaching a new low for the
! year.
“For the week ending October 10,
increases occurred over the previous
week in cattle receipts, cotton receipts,
electric current production, lumber
| production, and petroleum production,
while declines were recorded in bitumi
nous coal production, freight-car load
ings, hog receipts, steel ingot production
and wheat receipts. For the same
period the New York Times Composite
Index of general business activity
showed a decrease of 0.2 point, while
the Business Week Composite Index in
creased by 0.5 point.
CHICAGO DAIRY MARKET.
CHICAGO, October 24 (JP).— Butter-
Receipts, 10,699 tubs; market weak;
creamery specials (93 score), 31a31* 2 ;
I extras (92 score), 30 s / 2 ; extra firsts :
| (90-91 score), 28 , 2 a29' 2 ; firsts (88-89
score), 26a27; seconds (86-87 score),
24a25; standards (90 score, centralized
carlots), 29.
Eggs—Receipts. 2.134 cases; market
steady; extra firsts, 24) 2 &25: fresh
graded firsts, 23 V 2 ; current receipts,
19522: refrigerator firsts, 17 Mi refrig
erator extras, 19al9'a
•
Classified Ads
Pages 5 to 12
- T
INVESTMENT BOND
MARKET IMPROVES
Rising Money Rates Fail to
Check Advancing Trend
of List.
i ———
Bpocial Dispatch to The Star.
NEW YORK. October 24 —Though it
j was marked by & heavy volume of
liquidation in United States Govern-
I ment and other high-grade securities,
| the past week was nevertheless a
period in which the investment market
took on fresh hope.
The decision of the Interstate Com
merce Commission flatly refusing the
15 per cent freight rate increase appli
cation and calling upon the carriers to
help themselves caused only a minor
change in the market's level. All week
long the foreign situattion presented a
cheerier picture as continental markets
paralleled an improvement In trade
activity, as high hopes were expressed
for a favorable outcome of the con
versations between President Hoover
; and Premier Laval of Prance, and as
the foreign exchange market settled
; down to a steady level which ended ex
change gambling and assured a stable
basis on which to carry international
j trade.
Prime Issues Gain.
The market, measured by the aver
ages. changed but little. High grade
issues were weak at the beginning ot
! the week's sessions and then advanced
strongly on Friday, after the New York
Federal Reserve Bank had failed to
make the third successive advance in
the rediscount rate. However, specu
lative bonds, both foreign and domestic,
paid scant heed to the changes In the
; money market and were actually ad
vancing on the broad front while the
prime group was declining.
Wall Street accepted without pro
test the indications of rising monev
rates. On Monday it was convinced
i that the week would see even higher
i rates and as a consequence there
! was liquidation In United States
j Government securities and high
i grade municipals that compared
with the frantic selling of junior
I bonds in bygone months. More than
j was wiped off the mar
ket value of Treasuries and Liber
j ties. New York State 4s dropped
jto 4.50 per cent yield basis. Seerc
, tary .Mellon, who only a few weeks
I a K° found his 90-dav Treasury bills
snapped up at at a .49 per cent annum
; yield basis, had to pav 2.69 per cent
j to market his latest issue.
Meanwhile, with the prospect that
some specific plan would be devised
to help Institutions holding large
amounts of greatly depreciated rail
road securities, the market was not
disposed to be unsettled by the denial
of the freight rate Increase. As a
matter of fact, junior railroad securi
; Wes that had advanced broadlv the I
week before in anticipation of a 10 per j
; cent rate increase, declined only nar
; rowdy and It was evident that the de
| eision had generated very little liqui
| dation.
New Offerings.
During the week new bond offerings
; amounted to $20,625,000, all munici
pals. This compared with no Issues the
week before and with $98,039,539 In
the same week of 1930. If the money
market Is stabilized around the pres
ent level, some new' emissions may be
expected, but It Is doubtful If any but
most attractive)? priced and solidly
secured flotations will receive atten
tion.
(Copyright, 1931.)
- -- •
PLANT RUNS OVERTIME.
NEW YORK, October 24 (Special).*
: —Full-time employment for all the
workers in the Corona typewriter plant
in Groton, N. Y„ during the coming
Winter Is Indicated by present sales
and productive plans, according to an
announcement today by Fowler Man
ning, president, L. C. Smith Ac Carona
Typewriters, Inc. The plant, employ
ing 700 workers. Is now operating on
an overtime basis.
FOREIGN ECONOMIC
PICTURE BRIGHTENS
DURING PAST WEEK
Hoarding of Money Has De
creased on Continent and
Exchanges Improve.
ATTENTION IS CENTERED
ON LAVAL’S VISIT HERE
Conferences Between President
Hoover and French Premier May
Solve Financial Problems.
Sp*ci«l Dispatch to Thf Star.
NEW YORK. October 24.—Cable and
radio dispatches to the Business Week
Rive the following survey of business
abroad for the week ending October 24:
Europe.—The business trend is better.
Immediate conditions are only very
slightly changed, but sentiment and
prospects—though the latter must still
be hedged with reservations—have
brightened progressively throughout the
week.
The hoarding movement on the con
tlnent has slackened and actual re
versal Is probable if the present im
proved trends continue. Return to the
previous abnormally low bank rates is
unlikely. It is the consensus that the
former cheap money policy resulted In
greater loss of bank interests than could
possibly be gained by industry under
present conditions.
Security Demands.
Exchanges are steadier. Dollar short
sales have appreciably slacked. Scandi
navia clipped 1 per cent from the re
cent vertically raised protective bank
rates, which is an Indication of stronger
inherent conditions. If, as expected,
the Reichsbank now weathers the im
mediate exchange crisis, the greatest
remaining financial weakness is Austro-
Hungary. where French assistance is
under negotiation.
Attention is riveted on the Laval
visit to Washington. Previous miscon
ceptions that the visit was tantamount
to a conference, at which decisions
would be made, is giving way to the
realization that the meeting is essential
ly Intended as preparatory to subsequent
Franco-American negotiations under
the direction of their respective heads
of state, who, after tills personal ex
change of views, will be more able to
reconcile such dissonances as will oc
cur between their respective parliaments.
European opinion Is inclined to think
the crux of the discussions will be
reparations, war debts, disarmament
and gold policy. The complex rests in
I the French demands for security guar
antees. If a formula, both satisfying
to France and Internationally accept
able, can be evolved, agreements
liquidating most, if not all other prob
lems. are believed to be a practical pos
sibility.
Germany.—Chancellor Bruenlng’s an
nouncement of a determined program
to maintain economic equilibrium, and
his survival In the political assault in
the Reichstag, have united the Nation
alists, and, for the moment, have lifted
the most serious threat overhanging
European peace.
The Reichstag has readjoumed till
February 22. This respite Bruenlng will
use to push (I) work on the Franco
j German trade co-operative agreement
(2) work on the government's new
Economic Advisory Board. Hitlerism is
spreading. Though the trade surpluses
are steadily strengthening the ultimate
exchange position, it is realized that
the necessity for long export credits Is
among the causes for the slow reflux
to Germany of urgently-needed export
proceeds. Reichsbank's final resort of
cutting off from rediscount privilege all
exporters, who are guilty of not repatri
ating their export proceeds is expected
to show Immediate material effects.
France. —Reassurance has begun to •
succeed the nervousness of recent weeks.
Failure of the German Nationalists to
gain political control was s source of
great relief and gratification. Similarly,
the reported Federal Reserve Bank of
France agreement, whereby the Bank
of France maintains its balances In the
United States against earmarking
equivalent gold, have both dissipated
French fear of dollar exchange losses
and Increased exchange confidence, the
forward discount of dollars falling
sharply.
Budget Deficit.
Laval, prior to sailing for the United
States, succeeded in replacing appre
hensions that he would permit himself
to be ambushed in Washington.
Meanwhile, the greatest cause for
domestic concern—the budget deficit—
has been allayed by the announcement
that $240,000,000 in new economies
without increased taxation are probables
and that the current fiscal year would
terminate December I, Instead of April
31, thus permitting both earlier effec
tiveness of budget reforms and avoid
ance of their becoming Issues in the
1932 elections.
Great Britain. —Elections—due Oc
tober 27 —are impeding and overshadow
ing business, though devaluated sterling
is still a benefit to e^norters,
It is generally expectea that Ike
Nationalist government will be returned,
and that there will be tariffs next yafir.
Stock markets are cheerful. The de
mand is good for short term loans and
the general tone Is nopeful.
Northern interest centers in the Sino-
Japanese affair with the feeling wide
spread that there will be some further
diversion of China's cotton goods orders
to Lancashire.
The attendance of Gov. Norman at
the B. I. S. meeting in Basle has quieted
British rumors as to his pending retlre-
J ment. It is still felt that he will not
go forward to renomination in Novem
ber, but even this, in view of his rapid
improvement in health, is now more
doubtful.
POWER FIRM CONCLUDES
ELECTRICAL CONTRACTS
Special Dispatch to The Star.
BOSTON, October 24 —New England
Power Association, a division of Inter
national Hydroelectric System, has in
creased deliveries of primary electric
energy to the Edison Electric Illuminat
ing Co. of Boston by 50 per cent, or
nually to 150,000,000 kilowatt hours an
nually to 150,000,00 kilowatt hours an
nually-. This power is being supplied
under a contract providing for the
sale of electricity for renewable periods
extending for 2 years from October I.
1930. Deliveries of energy will be at
the new rate during the balance of the
term of the contract, except that dur
ing the last two years the amount is
reduced.
Power delivered under this contract
is generated at the 215,000-horsepower
Fifteen-Mile Fall* hydroelectric plant,
which New England Power Association
completed, a year ago.
i