FIXED DEBT GAINS
IN BUSINESS LULL
Growing Mortgages Regarded
as Important Damper
By the Associated Press.
NEW YORK, June 28.—One thing
that the business slump seems to have
"stimulated" Is fixed debt—bonds and
While bank loans, brokers' loans, re
tail credit and similar forms of more
liquid debts have been liquidated in
great volume, total bonds and mort
gages outstanding at the end of 1931
actually Increased 5.7 per cent from
A tabulation by Moody's shows the
3931 total of fixed debt to be $134,- j
■700.000.000. as compared to $127,400,
000.000 In 1929 and $99,400,000,000 in
The 1931 total represents almost half
of the national estimated wealth of
$285,000.0î>0.000 in 1931.
Held Recovery Obstacle.
The rigidity of this item is held by
Moody's to be a principal factor pre- ;
venting recovery from present business
conditions. This opinion is held be
cause prices have gone down. Declin
ing prices mean that the debtor must
sell more goods to get the dollars to
pav the debt.
Thus the $134,700,000,000 debt is. as
measured by the decline in -wholesale
prices, 33 per cent harder to pay off
than .it would have been in 1929. If
the debtor must sell raw materials he
needs 45.7 per cent more goods, because
raw material prices have fallen that
much. If he sells manufactured goods
he has to meet a decline of 26.5 per
cent in their wholesale prices.
Similarly, if he is a renter, or a wage
or salary earner, his task usually is
more difficult because he is receiving
Not only is it necessary to sell more j
goods or do more work to get the same
number of dollars, but it is more diffi
cult to sell the goods or to get the
These difficulties apply to more liquid
forms of debt, but not in the same
measure, since brokers' loans, for in
stance. are secured by collateral which
may readily be turned into cash.
Federal Debt Increases.
The fixed debt of the Government
was $17,500,000,000 at the end of 1931 !
—it is now about $19,000,000,000. In
1929 it was $16,500,000,000. This debt ;
must be paid from taxes, and taxes [
must be Increased to get more money
from taxpayers who are earning less.
Corporate debt was $44,900,000,000 In
1931, as compared to $41,700,000,000 in
1929. To meet their debts the corpora
tions must sell more goods for less
money when the difficulty of selling Is j
Similar is the case of $37,000,000,000
worth of urban real estate mortgages. !
$9,000,000,000 worth of farm mortgages
and $8,100,000,000 of foreign bonds.
Interest charges on the total of $134,
700.000.000 are about $8,100,000,000,
which is $200,000,000 more than in 1929.
These figures are based on the face
velue of the obligations, but what will !
actually be paid on them remains to be |
seen A good many bonds have been
defaulted as to interest, some as to I
In other periods much of the fixed
debt has been wiped out or reduced in
that way. There are reorganizations,
where the bondholders take common
stock in lieu of bonds, or take renewed |
bonds, or other settlements.
The market value of all bonds on
the New York Stock Exchange is about
30 per cent less than the face value,
the amount that would be paid did the
bonds mature fully.
CO-ED TAKING PART IN DEMO
Only recently graduated from North
western University. Ruth Stllwell has
plunged Into politics with the Demo
crats in Chicago. She hails from
Florida. —A. P. Photo.
Murderer and Suicide Was Erro
neously Given Prison Record.
CHICAGO. June 28 (Λ3).—The Asso
ciated Press erroneously reported Satur
day, July 25, that Roy Parks, who shot
and killed his wife, his son and Mrs.
Barbara Endre and then committed
suicide, was an ex-convict.
The Information was obtained from
the phicago police. Matt Miller, brother
in-law of Parks, says the information
was incorrect. The Associated Press is
glad to make this correction.
We rid your house of these
pernicious pests by using
—in special vaults. All insect
life destroyed. All furniture
mothproofed by us is—
Guaranteed 4 Years
WE WILL BE GLAD TO ADVISE
YOl ABOUT ANY VERMIN PROBLEM
824 Albce Bid*. Natl. 2058
Here*8 a Break for You! Manufacturer
Closes Out 20 of His Fine
• . . to sell at ridiculously lotc prices!
All are ball bearing. All full size. Painted
fabrics·. Woven stripe coverings. And some
with Permatex all-weather covers. Shop early.
4 Sample Glulers,
originally $ 17.95..
3 Sample Gliders,
8 Sample Gliders,
5 Sample Gliders,
(Sixth Floor, The Hecht Co.)
THE UIECHT CO·
F STREET AT T* FREE PARKING WHILE YOU SHOP HERE
7th, 8th and Ε Sts.—NAtional 9800
No Connection With Any Other Washington Store
You Will Be as Cool as a
Shore Breeze in This New
Kind But Firm
Linen Mesh Keeps
You Cool and
Buy Yours Now
and Save $1.05
V·. 5-\ I
Every pore has a chance
to breathe—yet every curv·
is under control ! Linen
meth corsette, with elastic
inserts. Lace cup-shaped
brassiere—cut low in back
for evening wear. Size» 34
to 40. »
Send Them to
Our Storage Vaults
A Dress for Everything
That Can Possibly Turn
Up Over Next Week-end
We've thought of all the invitations you could pos
sibly get for the Fourth of July week-end—and we're
ready for any emergency! For $10, you can get the
trickiest evening frocks that will be a sensation any
where—mousseline de soie, embroidered organdy with
tiny taffeta jackets and filmy chiffons with velvet gir
dles. And perfectly grand washable silks for moun
tain, shore or town wear! Sizes for misses and women.
Where They'll Be Safe
Moths and furs are deadly enemies—so don't
take any chances ! Our fur vaults are the most
scientific obtainable—our cleaning methods the
fteak of perfection. Fur coat# cleaned for as
îttle es $7. Store your coat today—just call
rUK STORAGE—SHCOND FLOOR
4th o' July
Turn a bare back to the
waves—and you're in the
1932 swim! Brief, tricky
suits in the novelty weaves
that have captured the sea
going crowd. All shades
COTTON JERSEY SLACKS
with "kerchief top—flashing red,
orange, blue, ftreen or white.
Sizes 14 to 20.
BEACH SHOP—SECOND FLOOR
If You Must Spend Just a Little
Spend it on Cotton Dresses
Narrow or Wide
The sort of cool, practical sports frocks
that are almost a uniform with well dressed
young people. Shirtwaist types that look
as if they had been made to order by a
very good English shirt maker! Tie on
the shoulder tennis frocks! Golf dresses,
qualified for success, for they fit so well!
White and pastels. Sizes 14 to 40.
Phone Orders to Jane Stuart, ΝαίΊ 9$00.
DAYTTTL FROCKS—THIRD FLOOR.
You're Buying a Lot of Comfort in This Sale !
Gibson Island Chairs
We Bought Them Special
We saw these chairs scatterec^all
around the beach at Gibson Island.
We knew they'd be great for your
lawn, porch, or Summer cottage—
and here they are, way below what
you'd expect to pay for them. Green
and orange; adjustable back.
OUTDOOR FURNITURE—FOURTH FLOOR
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