Evening star. [volume], May 14, 1933, Image 59

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

Image provided by: Library of Congress, Washington, DC

                
News of Markets
Pages 1 to 4
FINANCIAL AND CLASSIFIED
Classified Ads
Pages 5 to 13
Part 6—14 Pages
WASHINGTON, D. C., SUNDAY MORNING, MAY 14, 1933.
GLASS BANK BILL
PASSAGE IS URGED
BY FRANCIS SISSON
Head of Association Believes
Measure Should Speedily
Become.Law.
—
SUGGESTS BROADENING
OF U. S. BANKING SYSTEM
Sudden Shifting of Large Commer
cial Deposits Should Be Lim
ited, He Declares.
BY EDWARD C. STONE.
Passage of the Glass bank bill by
Congress at the earliest possible date
Is urged by Francis H. Sisson, presi
dent of the American Bankers' Asso
ciation. At the same time he makes
some very vital suggestions concerning
Imffrovements In general tanking con
ditions. While in this city the other
day he asserted that the problems In
volved in our fundamental banking
legislation are "about 90 per cent
political rather than economic."
The questions involved and the
eomments Mr. Sisson makes have
direct bearing on the Glass bill which
Is again being given special committee
attention in Congress in an effort to
speed up its progress. Fourteen points
are offered for consideration of the
business and financial communities by
President Sisson. as his own views and
those of the A. B. A., on the best ways
of improving the banking system In
the United States. He advises:
First, the passage of the revised
Class bill as soon as possible, but along
with It the creation of a commission
to recommend after mature deliberation
the further changes that should be
made in our banking system, in our
Federal Reserve System and In our
monetary system.
In order that banks generally may
become members of the Federal Re
serve System, the provision of the
Reserve act should be so broadened
as to allow for admission to member
ship of numerous Stat& chartered
commercial and mutual savings banks
not now within the system. Again,
we want to concentrate power and re
sponsibility in banks under central
direction.
Opposes Bank Holidays.
Provision should be devised against
any proclamation of banking holidays
by governors of states. That monkey
wrench In the machinery started our
trouble not so long ago, Mr. Sisslon
says.
Branch banking privileges should be
uniform within states for all banks,
•whether holding national charters or
Btate charters.
Reasonable limitations should be de
vised to control the sudden shifting of
large commercial deposits. A good deal
of the trouble in this last banking cri
sis came not from runs by small sav
ings depositors, but panicky corporation
treasurers who began to shift funds
around the country in a most disastrous
and upsetting manner, who were fearful
of losing money and quite unwarrant
edly in many cases.
Restraint on real estate speculation
Xrould probably prove to be a safeguard
to American banking comparable to
that which would result from a restric
tion of speculation In commodities and
securities. All this talk about holding
down Wall Street speculation, too many
of our legislators have ignored the fact
that the greater part of the burden
Upon our banking system has been the
frozen loans upon farms and homes
which could r.ot b? thawed out to meet
deposit demands, the A. B. A. president
believes.
A Federal commission on banking
legislation should consider regulation of
Interest payments on all classes of de
posits and of requirements that deposi
tors should give notification of inten
tion to withdraw time deposits.
I Scores Loaning to Officers.
Federal legislation should provide for ,
the careful and rigorous regulation of 1
the granting of loans by banks to their
town officers and directors, M'hich seems
b simple and fundamental thing. It Is
a law of the "State of New York and
Should be the law all over the country.
As the general banking system Is
strengthened the Postal Saving System
should be progressively restricted, and
the Government should be kept out of
the banking business.
Deposits of public funds In banks
should have the same status as private
deposits and should not be accorded spe
cial and additional securities, which is
pow required.
A more effective co-ordination of the
activities of the Federal Reserve banks
Is greatly needed. In the last crisis there
was a considerable breakdown of our
Federal Reserve system through failure
of various member banks to co-ordinate
their activities as it had been hoped
they might. The original banking plan
Which was submitted by bankers
through the Aldridge Commission and
Jater by others provided for a strong
central bank in Washington with
branches outside. For political reasons,
and not business reasons, that could not
pass. We set up this system today with
32 independent Reserve banks scattered
about the country and without adequate
authority to make them co-ordinate and
to govern the flow of credit interchange
ably among them. As a plain matter of
practical efficiency, as well as economic
theory, that is one of the questions we
should tackle, Mr. Slsson says.
Would Change Reserve Ael.
The present emergency provisions
(with respect to member banks borrow
ing from the Federal Reserve banks
should be retained as permanent pro
visions.
Consideration should be given to a
possible modification of the Federal Re
serve act by which the system would be
given power to change the amount of
member bank reserves required. This
power would afford control over any
threat of dangerous credit inflation.
Consideration should be given to a
change in our Federal Reserve act by
which a minimum required relationship
would be established between our stock
of monetary gold and the combined
total of our reserve notes and our bank
deposits. This would nullify most of
the dangers inherent in the hoarding of
currency, President Sisson concludes.
Bank Mercer run rrogresses.
As noted elsewhere In The Sunday
Star, tbe proposal to merge a number of
the local closed banks is progressing
•with rapidity. For a long time after
these institutions failed to receive Gov
ernment licenses to reopen, very little
news regarding future hopes, plans or
possibilities was forthcoming.
In the past few days developments
have been surprising in their rapidity.
It looks now as if at least six local banks
would join the move to form tbe pro
posed central bank. The directors and
other officials of these institutions feel
that one entirely new institution would
be much stronger than It would be pos
sible to make these banks as units.
M time has gene on since tba bank*
BUSINESS GAIN EXTENDED
BY LEADING INDUSTRIES
Commerce Department Notes Expansion
in Steel, Automobile and Coal
Trades During Past Week.
By the Associated Press.
AN expansion in domestic busi
ness activity during the week
ended May 6 was noted in the
weekly review of the situation
by the Commerce Department.
A number of important industries,
including steel, automobiles .and bitu
minous coal, have bettered the operat
ing rate of the corresponding period of
last year, and other major business in
dicators have advanced to a level ap
proaching last year's.
The freight-car loading report was
favorable, the total advancing 42.706
cars to the highest point since last
Fall. The decline of 3.3 per cent from
the same week of 1932 was the smallest
since 1929. - Construction contracts
awarded in the final week of April were
again extremely low.
Retail trade in April was decidely
better than in March, and sales last
week were further improved. Market
ings of agricultural products .jgcpanded
during the week, cotton and 'Aieat to
a larger extent than live stock. Hog
receipts were lower than a week ago,
but all classes were higher than last
year.
Commodity prices advanced at a leas
rapid pace and Fisher's wholesale price
index reached the highest level since
the end of November. Cotton and
wheat extended their recent gains.
Copper was higher, and advances in
Individual iron and steel items were
reflected in a slight rise In the com
posite price. The Bureau of Labor
Statistics wholesale price index for the
week of April 29 showed the largest
Increase since the index has been
available.
Bank debits outside of New York
moved upward, although showing a
larger percentage decline from a year
ago than in the preceding week. Both
time and call money rates were quoted
at 1 per cent, the latter being re
duced about \\ per cent. Money in
circulation underwent a further reduc
tion of $43,000,000 and is now about
9 per cent above a year ago compared
with 35 per cent at the March peak.
Commercial failures were up slightly
for the week, but the total remained
relatively low and about one-fourth
less than In 1932.
Recent Wave of Buying Re
sults in Increased Mill
Operations.
Bj the Associated Press.
NEW YORK, May 13—A rash of
tiuying In the cotton goods and other
textile markets has brought the in
dustry the greatest volume of business
in recent years, textile interests re
ported.
Despite the suddenness of the revival
»nd the unusual circumstances attend
ing it, many of the mill operators
expressed the belief that it signalizes
the end of the industry's long slump.
The present situation, they point
aut. is totally different from the little
(lurry of last Autumn and the short
lived pickup in 1931 and 1930. In
each of these instances tobogganning
raw material costs and the unchecked
decline in purchasing power presented
i formidable barrier to any basic im
provement in the industry.
Even now, it is admitted, no one can
say when consumers are going to enter
the market on a scale comparable with
present production, but the fact that
jobbers, retailers, chain stores and
mail order houses are clamoring for
supplies for their bare shelves, buying
an a scale far greater than at any
previous time in recent years, has
given the mill men confidence that a
decided upturn in consumption is near
it hand.
The great change that has taken
place in the cotton textile situation
can be measured more or less accu
rately by the advance of about 3
cents a pound In raw cotton from the
levels prevailing two months ago.
(Copyright. 1933.)
PENNSYLVANIA RAILROAD
WILL CONSTRUCT PIER
Special Dispatch to The Star.
BALTIMORE, May 13.—The Penn
sylvania Railroad has completed plans
for building a pier at Canton, to re
place the three destroyed by fire last
July, and contractors are preparing to
submit estimates.
The new pier will be 930 feet long
uid 223 wide. There will be a deck of
:oncrete on timber piling and a super
itructure of asbestos-covered metal, with
metal doors and sashes.
Bids are returnable by the end of
May. The new pier, to be known as
Pier No. 1, will replace the destroyed
piers, Nos. 2, 3 and 4, the loss of which
was estimated at between $600,000 and
$800,000.
rAKOMA PARK LOAN
FIRM READY TO OPEN
Announcement ,1s made by the
Takoma Industrial Bankers, Inc., of
Takoma Park, Md.. that they will
open offices, at 32 Carroll avenue, for
business tomorrow morning. The com
pany Is in the business of making small
loans of (300 or less, on mortgages and
other security.
William North Sturtevant, for years
connected with Harriman & Co. of
this city, is secretary-manager of the
company and will be in active charge
of its operation.
Takoma Industrial Bankers, Inc., is
an affiliate of the Lincoln Service
Corporation (holding company) of
Washington.
Furniture Sales at Peak.
NEW YORK, May 13 VP).—The New
York Furniture Exchange, Inc., reports
sales of furniture at a new high peak.
For the past week sales volume was IS
per cent ahead of the corresponding
week in 1932.
closed, there has been a change of
heart among many officials. They have
been giving more consideration to the
rights of the depositors. Failing to re
open as unit banks, they have come
to feel that the best way to help the
depositors get part of their money free
is to unite. - Hence the merger drive.
Several banks, however, still believe they
are going to reopen as units.
pnrposes of "Spokane Plan."
Much is being said about the "Spo
kane plan," upon which the local merger
efforts are based. It worked success
fully in Spokane and, what is more vital,
has Treasury approval. The plan groups
requirements laid down by the Treasury
regarding new capital, surplus, preferred
stock, common stock, quick assets,
frozen assets—rules which must be met
in full. Raising of new capitalization
is considered the most important re
quirement. ,
The plan is not mysterious. It insists
on complete separation of all slow or
questionable assets from prime or liquid
assets, the former to be trusteed and the
latter to be taken over by the new bank.
It also stipulates that the frozen assets
are to be disposed of by conservators or
trustees to the best possible advantage
of depositors in closed banks.
The two outshining aims outlined In
the plan are intended to turn one or
more closed into a going institu
tion and the liberation of as many tied
up depoaiUa* possible, ^
Insurance Head
D. C. UNDERWRITERS NAME
OFFICERS FOR YEAR.
THOMAS P. MORGAN, JB.,
Manager of the Washington office of
the Mutual Life Insurance Co. of New
York, was honored by his fellow agents
at the annual meeting. He has long
been active in the District of Columbia
Association. His most notable service
during the past year was his work as
committee chairman in connection with
the joint sales conference of Washing
ton and Baltimore insurance men, when
all previous attendance records were
smashed.
INCREASE IN COPPER
PRICES IS REPORTED
Pickup in Consumer Buying for
September Delivery Gives
Boost to Market.
By the Associated Press.
NEW YORK, May 13.—Copper con
tinued to display strength this week,
advancing % cent t* the basis of 7
cents for electrolytic.
Rumors of impending important an
nouncements concerning Summer cur
tailment schedules by large producing
interests were accompanied by more
active domestic consumer buying or
ders, which were principally for Sep
tember delivery. Foreign demand also
was more active at advancing prices.
Fabricators advanced wire products
cent per pound.
Tin prices, now approximately dou
ble the low of last year, maintained
their advances on steady daily con
sumer absorption of moderate offerings.
Nearby supplies of Straits tin in this
country are limited, while tin plate
production was reported increased to 60
per cent of capacity.
The first gain in unfilled orders of
the United States Steel Corporation
since October, 1932, and a further In
crease in steel ingot production to an
estimated 31 to 33 per cent of the
country's capacity, reflected continued
good Inquiry for steel from the auto
mobile industry and increasing activ
ity in tin plate mills and building
trades.
SWISS FAIR PROVES
AN UNUSUAL SUCCESS
. The Swiss legation announced yester
day. that the seventeenth Swiss Indus
tries Fair from March 25 to April 4,
1933, at Basle registered a great success.
The number of exhibitors rose from
1,123 last year to 1,157. The attendance
broke all previous records; 90,197 buy
ers' tickets for two to three visits were
issued, as compared with 75,370 in the
previous year. The number of Swiss
visitors rose by 12 per cent. There
were likewise more visitors from abroad.
Visitors came from 19 European and
8 overseas countries. It is worthy of
special note that the number of visitors
from Germany rose considerably, i. e„
from 346 last year to 515 this year.
Visitors from France and Italy fell
ofT slightly, but there were more from
Austria, Hungary and Czechoslovakia.
With respect to transactions at the
fair, expectations were considerably
exceeded.
NEW LUMBER BUSINESS
SHOWS IMPROVEMENT
By the Associated Press.
The progress which has characterised
the lumber Industry during the last two
months was evident again during the
week ended May 6, when orders for
new business at the mills exceeded
206,000,000 feet for the first time in
two years.
In announcing th; report which was
received from leading mills through
out the country, the National Lumber
Manufacturers' Association said that
production likewise was higher than
for any week since last Fall. The out
put was given as 123,845,000 feet, with
new business amounting to 308,689,000
feet, and shipments to 149,544,000 feet
the upturn was shared by both hard
wooda and softwoods, the. association
I said* " .
STOCK PRICES RISE
III ACTIVE MARKET
DURING PAST WEEK
Upturn in Commodity Quota
tions Provides Stimulus for
Advance in Securities.
- /
BANKS ARE BENEFITTED
BY GAIN IN QUOTATIONS
Indus trial and Railroad Groups
Show Greatest Appreciation
in Brisk Trading.
BY CHARLES F. SPEARE.
Special Dispatch to The Star.
NEW YORK, May 13.—The highest
average prices for Industrial and rail
road stocks in months, with the public
utilities lagging behind, and a buoyant
market for nearly all classes of bonds,
except municipals, have developed this
week out of the expectancy of early
use of the measures for lifting the price
level contained & the newly enacted
farm bill.
The public has not accepted entirely
the injunction in President Roosevelt's
radio address that it should avoid "the
foolish course of letting this improve
ment come back on another specula
tive wave." It has hastened, as it
always does, to anticipate events by
heavy purchases of common stocks and
junior bonds, as well as of the most
volatile of the farm products. No other
course could have been expected.
Meanwhile, the position of the dol
lar abroad has been uncertain from
day to day, but with indications that
the ultimate end of the process of de
valuation will leave it at a discount
of about 15 per cent in relation to
foreign currencies.
Program Set In Motion.
The point has been reached in the
campaign to raise the price level where
debate has ended and bills are being
whipped into shape, progress in the
direction charted by the inflationists.
It may be said that while there is
deep anxiety in many quarters over
the possible effects of inflation the
mood of the general public is one of
growing conviction that it has wit
nessed the worst phases of the de
pression and that there will be a steady
gain in the re-employment of those
who have been without work for months
or years.
Emphasis has been placed this week
on the numerous corporations that
have added to their pay rolls or have
increased wages. There is nothing yet
in this to get excited about. Those
benefitted represent an infinitesimal
fraction of all who are identified with
Industry In its manifold branches.
There have been a number of signifi
cant developments which. If continued,
will tend to brighten up the general
business picture. Among them this
week are the advance in iron and steel
operations to above 31 per cent, with
some districts operating at 60 per cent,
and the first increase since last Octo
ber in the unfilled tonnage orders of
the United States Steel Corporation;
the gain in electric power output over
the same period of 1932;.the increase
in car loadings, which has prompted
several railroad executives to express
themselves in more optimistic terms
than for several years, and intense
activity in certain sections of the tex
tile trade. This has experienced a
record business at rising prices in the
last few days.
Living CoaU Rising.
In the commodity markets specula
tion has not been so violent. It was
at first tempered by the disposition to
consolidate the gains of the last two
months and later moved swiftly ahead
on the bullish trade statistics. Whole
sale food prices are slowly rising and
are now 15 per cent above those at the
end of February.
The current strength in all the
United States Government Issues, In
spite of the Inflationary doctrine of
the day and the refusal of the Treas
ury to maintain gold payments on its
obligations, is evidence that the pre
liminary stages of Federal Reserve
absorption of Government paper have
already been entered and that they
are being followed by astute Insti
tutional and private Investors.
The degree to which the provisions
of the inflation bill hiay be employed
to bring about the required recovery
in prices will depend upon the extent
of public confidence in the business
and banking structures. Have these
been restored to. a sound basis? Or
do they need to be propped up still
more? The answer with respect to
business is available in some of the
statistics of the week.
A practical problem is raised by the
advance in securities. Banks have
loaned large amounts on stocks which
they accepted as collateral prior to
the break in 1929, and, subsequently,
when they took over loans of their
customers from brokers. Stocks are
today at prices where many of these
loans could tie liquidated without loss
to the lender, as the loans have been
steadily reduced since they were first
negotiated. It would, therefore, stxm,
to be a good time for banks to reduce
one form of commitment which has
been an embarrassment to them for
several years.
Boiid Policy.
Their policy respecting bonds which
they own, and whose serious depreci
ation has been one of the most dis
turbing factors in their situation, is not
so simple. While it is true that many
bonds have experienced a great recov
ery, they are still at a large discount
from cost. To liquidate them even at
the present level would result in a
serious write-off in bank surplus and
reserve accounts. The only exception
is in that class of securities in de
fault and which have already had an
enforced mark-down to nominal fig
ures, from which there has been a
substantial appreciation. Advantage of
this condition might well be taken by
Institutions. As to their other bonds,
they may as well enjoy the thrill of
the rise in them and pray that it con
tinues.
(Copyriabt. 1933.)
ELECTRIC POWER OUTPUT
TOPS FIGURE FOR 1932
Br the Associated Press.
NEW YORK, May 13.—For the first
time In nearly three years electric out
put consumption last week ran at a
higher rate than in the previous year.
Last week's output of 1,432,707,000
kilowatt hours, as reported by the Edi
son Electric Institute, was 0.5 per cent
ahead of the 1,429,032,000-ldlo watt -
hour production of the same week last
year. A moderate gain also was shown
over the figure of the previous week,
.which was contrary to the usual sea
I social trend. The last gain in output
' " In the week of June
THAT GOVERNMENT AND INDUSTRY PARTNERSHIP.
weuo,
'A&OOT THAT (i/SK-OPEMER
XOOR PWSTNtK
<jQU> Me.^tKD
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DEMONtfRtfOP,
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'Copyright. 103.1.)
HOME REPAIR EH
ACCOUNT EXPANDS
Agencies Expect to Extend
$75,000,000 Credit for
Renovation Work.
By the Associated Press.
CHICAGO. May 13 —The building and
loan Industry expects to lend upward
of $75,000,000 this year to American
home owners lor modernization and
repair projects.
Already more than $15,000,000 has
been advanced to 18,150 families since
January 1 for such expenditures, the
United States Building and Loan
League announced yesterday on the
basis of a Nation-wide survey covering
the first three months of 1933.
The volume of lending, however, is
expected to increase during Summer
months. States thus far showing a
marked activity in this direction include
New Jersey, Illinois, Indiana, Virginia,
North Carolina, Kansas. Georgia, New
York, Kentucky, Pennsylvania, Michi
gan and Missouri.
Of all building and loan associations
reporting to the league about 65 per
cent listed some loans for renovation of
homes. From two associations with the
highest score in this respect the aver
age home owner has borrowed between
$850 and $1,000 for Improvements.
At least half the amount lent so far,
said Morton Bod fish, executive man
ager of the league, has been made pos
sible by local associations' access to
money from Federal home loan banks.
AUTOMOBILE OUTPUT
INCREASES SHARPLY!
Production for Week at Highest |
Figure Since June, 1931.
fains Are Steady.
Br the Associated Press.
DETROIT, May 13.—Cram's automo
tive reports in a weekly analysis of the
motor car industry today says:
"Automobile production during the
week ending May 13 ascended to the
highest weekly figure attained since the
week of June 27, 1931. Output was es
timated at 51,671 units. It was the
eighth consecutive week production has
Increased over the preceding period.
"Production of passenger cars and
trucks in the United States and Can
ada for the first six months of 1933
will amount to approximately 930,000
units, based on the current trend and
expectations for the remainder of May
and for June." Output for the cor
responding period a year ago was 911,
117 units.
"In view of current improvement In
business activity,'' the analysis adds, "it
is unlikely that such a precipitous de
cline as occurred in the second half
of 1932 will appear in the second six
months of 1933.
"A tentative estimate of 1,700,000
units for total 1933 production seems
consistent with-the current trend and
outlook."
Last year's total was slightly more
than 1,400,000 units.
•-»
PRICES OF WHOLESALE
HARDWARE ADVANCE
Special Dlipatch to The Star.
NEW YORK. May 13.—Activity in
wholesale hardware has recently, in
many cases, exceeded expectations.
Hardware Age says in its market sum
mary. Staple purchases to avoid future
price increases have been more liberal,
though not broadly speculative. Quo
tations have been advanced or with
drawn by manufacturers in numerous
instances, and the inflationary influ
ences, coming at a time of very low in
ventories, are rather quickly felt by
buyers.
While there is some disposition to
defer Important business decisions be
cause of the legislation now pending,
the momentum already gained hat kept
Price of Dollar
Advances in Light
Week End Trading
Br the Auoclatcd Pre si.
NEW YORK, May 13.—Trading In
foreign exchange markets was light to
day, but the American dollar managed
to move up moderately In terms of
leading European currencies.
Both the British pound sterling and
the French franc sagged, the former
losing S of a cent at $3_97>2 for
cables, while the latter was down .01
of a cent at 3.63 cents. Dutch guilders
yielded .15 of a cent at 47.25 cents.
Swiss francs were off .15 of a cent and
Belgian belgas dropped 1-30 of a cent.
Funds of Italy, Germany, Spain.
Canada. Shanghai and Mexico eased.
The 'Japanese yen was fractionally
higher.
Recent Increase in Output
Has Followed Gain
in Sales.
Br the Associated Press.
DETROIT. May 13 —In the midst of
what producers and sales executives be
lieve is the "recovery" period, the motor
car industry is attracting more atten
tion to its production and sales figures
than at any time since the boom months
of 1929.
In 1929 automobile men watched the
dizzy pace set by the factories as ve
hicles came from the assembly lines in
such huge numbers that before the
year was completed more than 5,000,
000 units had been poured out to swamp
a market able to absorb only about 75
per cent of the output. They saw April
and May of that year bring forth more
cars than were sold throughout the
United States in all of last year.
Once again the April-May production
figures are being watched closely, for
output is upward bound. So. too, are
sales statistics. April production this
year amounted to approximately 175,000
units. May has every indication of
touching 200,000 units. This is a mod
est showing compared to the 663,000,
636,000 record of April-May four years
ago. but the current figures contain a
significance that was entirely lacking in
1928.
At that time a production record
was the major objective of the Indus
try, relatively little thought was given
by the factory heads to the problem of
distribution. Now, so far has the co
ordination of output and distribution
been carried, that an increase in pro
duction schedules means an Increase
has developed in purchaser demand.
Moreover, barring the unexpected, the
current month will mark the second
consecutiye month to show an increase
in output over the corresponding month
a year ago.
Bank of England Statement.
LONDON, May 13 W).—'The weekly
statement of the Bank of England
•hows the following changes in pounds:
Total reserve increased 978,000: circu
lation decreased 996,000; bullion de
creased 18,000; other securities de
creased 13,000; public deposits increased
3,563,000; other deposits decreased 7,
071,000; notes reserve increased 996,000;
government securities decreased
440,000.
The proportion of the bank's reserve
to liability is 53.48 per cent compared
with 50.30 last week.
Rate of discount, 3 per cent.
Bank Loses Court Flea.
FREDERICK, Md., May 13.—Applica
tion of the Fidelity and Deposit Co.,
Baltimore, requesting the court to mod
ify the decree, which included the as
signment of four mortgages now In the
bands of the receiver of the closed
Central Trust Co., Frederick, to the
People's Banking Co, Smlthsburg, was
denied by Chief Judge Hammond Uraer
FEDERAL RESERVE
BANKS STRONGER
Improvement in System Has
Been Steady Since Re
cent Holiday.
BT CHAS. P. SHAEFFER,
Associated Press Business Writer.
The position of Federal Reserve
banks has been strengthened Immensely
since declaration of the banking holiday
arising from the crisis early in March.
Since that time a total of $1,646,009,
000 has been returned to the Reserve
banks and to the Treasury, representing
a part of that abnormal sum consti
tuting money in circulation. At the
close of business on May 10 the amount
in circulation had shrunk to $5,892,
000,000 from the peak of $7,538,000,000
cn March 6. indicating withdrawal of
funds from hoarding, as well as more
normal restoration of the conduct of
business through the medium of check
ing accounts. The present, total, how
ever, is still $461,000,000 higher than at
the same time a year ago.
Of the amount returned to the Gov
ernment more than $750,000,000 was
in the form of gold and gold certificates.
At $3,442,134,000 on May 10, gold re
serves of the 12 Reserve banks were
$758,595,000 higher than on March 6,
and at the highest level on record.
All the factors outlined above have
combined to raise the ratio of reserves
to combined deposit and note liabilities
of the Reserve banks from 45.6 per cent
on March 6 to 64.6 per cent at the close
of business May 10.
In the meantime the total monetary
gold stocks of the Nation have risen
$70,000,000 since the banking holiday,
amounting to $4,313,000,000 at the close
of business on May 10. These figures
show less of a recovery than the Federal
Reserve bank figures alone, due to the
Tact that the return of gold shipt>ed
abroad or earmarked for foreign account
was less rapid than the recovery of
gold from circulation in this country.
However, the segregation of all gold
stocks in the Treasury or in the Federal
Reserve banks, as ordered by President
Roosevelt's proclamation, has had the
effect of bulwarking the Nation's credit
base to an unparalleled degree.
Total gold stocks of the United States
amount to approximately 40 per cent ot
the world's total, and this amount, most
of which is in direct control of the
monetary authorities of the Govern
ment. is larger than that of any other
country, exceeding the French supply
by more than $700,000,000 on the basis
of the latest official statement of the
European republic's holdings.
TWO LOCAL FINANCIERS
JOIN LAWRENCE R. LEEBY
Lawrence R. Leeby of Lawrence R.
Leeby A Co., investment bankers, with
offices In the Southern building, an
nounces that Henry C. Privette and J.
W Wartenberg have become associated
with the firm in the capacity of vice
presidents. Both men have had wide
experience in the investment banking
field and have recently been associated
with Robert C. Jones St Co.
Mr. Privette is a law graduate of the
University of North Carolina, but gave
up his practice about five years ago to
enter his present business.
Mr. Wartenberg was formerly presi
dent of the Investors' Club of New York,
and until the Fall of 1931 was asso
ciated with the Glanninl banking in
terests,' with offices In Albany and
Syracuse.
BUSINESS GAINS NOW
AT LAST-YEAR LEVELS
Special Dispatch to The Star. ,
BOSTON, May 13.—The rise In busi
ness activity, says the United Business
Service, has now carried volumes up to
the point registered at this time last
year. The service points out that this
Is the first time since the depreasion
started that aggregate business was
been on the same level as la the corre
FOREIGN ECONOMIC
HOPES ARE PINNED
ON LONDON PARLEY
Financial Centers Abroad Are
Planning for Meeting
Next Month.
BRITISH TRADE SCORES
SUBSTANTIAL UPTURNS
French Industry Alio Reported
Better, With Improvement in
Iron and Steel Operation!.
Special Dispatch to Tb* Star.
NEW YORK, May 13 —Cablet ud
wireless dispatches to The Business
Week give the following survey of busi
ness abroad for the week ending today:
London.—Britain Is looking forward
to the World Economic Conference with
Increasing buoyancy. There Is a gen
uine and growing optimism over the
business outlook. Orders are Increas
ing. More men have been taken back
to work In the building, public works,
contracting, tailoring, distribution, brick
and tile, transport, hotel and general
and marine engineering industries.
Shipbuilding is expanding again. So
are the motors industries. There have
been only minor setbacks In the coal,
cotton textile, pottery. Jute, boot and
textile finishing Industries.
Market* Buoyant.
Stock markets are buoyant, with in
dustrials and commodity shares being
bought now so as to share In the re
covery. Dollar exchange, after col
lapsing to a new low at the very end
of last week, has recovered this week,
though fluctuations are still violent be
cause of continued uncertainties over
future policy In the United States.
Francs have been weak. So has the
Dutch guilder. Fear persists that these
two currencies will be wholly forced off
the gold standard before the World
Economic Conference can re-establish
the gold standard on a new basis.
Bank clearing figures continue to
show rises in deposits, indicating that
excess money is awaiting Investment in
good Issues when the public becomes
more certain that recovery is more than
temporary.
Copper interests in this country have
formed a new development association
after the style of the Copper and Brass
Research Association In the United
States. It is the purpose of the or
ganization to find new uses for copper.
Success of the British Coal Utilization
Council in finding new uses for coal has
stimulated this co-operative eflort
among the copper Industries.
Berlin.—The "heroic" period of thi
"national revolution'' is over and there
is every reason to believe that thing!
will soon enter a more quiet course. Foi
the present, however, there Is still un
certainty and a growing apprehension
over the isolated position in which
Germany is finding herself as a result
of the last five months of political un
rest and nationalistic excesses. These
are reasons for the weakness on securi
ties markets this week, and for the lull
in industrial activity. Developments,
economically, are more featureless than
in many weeks.
Nothing has come from Chancellor
Hitler In this second week since the
Labor day speech to make any more
definite the vague proposals he made
for domestic recovery. His suggestion
of aims has appeased the mass of Ger
mans. Executives are more interested
in learning the methods and means.
Paris.—Business continued to improve
this week. Iron and steel activity is
greater. Biggest boost to the business
came from government orders for rails—
nearly 86.000 tons—for 964 kilometers
of new lines. Textiles also are reviving.
Lille, Armentieres, Roubaix and Tour
coing all report increased activity. And
finally, automobile production has been
stepped up with sudden improvement in
demand.
Production
At the end of March the general
production index stood at 104, compared
with the monthly average for last year at
96. Building trade showed up worse,
the index standing at 93 contrasted
with 100, the average for last year.
CARLOADINGS DROP
SLIGHTLY FOR WEEK
Decrease of 11,857 Reported Dur
ing Period Ending May 6 by
Railway Association.
Br the Associated Press.
The American Railway Association
announced yesterday that loadings of
revenue freight for the week ending
May 6 were 523,819 cars, a decrease of
11,857 from the preceding week and
10.132 under the same week in 1932.
Miscellaneous freight routed during
the week of May 6 was 197,066 cars, a
decrease of 9,224 from the preceding
week, but 632 over the same week last
year: less than car-lot merchandise.
164,343, an Increase of 2,224 over the
preceding week, but 20,784 under the
corresponding week last year; grain and
grain products, 39,412, a decrease of
2,102 under the preceding week, but
10,834 over 1932 and 4,159 over the same
week in 1931; forest products, 19,167,
418 cars above the preceding week, but
255 cars under the same week In 1932;
ore, 5,766. increase 44 cars and 3,572;
coal, 76,665 cars, decrease 630 and 3,729;
coke, 5,481, decrease 129 from the pre
ceding week, but 256 cars over the same
week last year; live stock, 17.919, de
crease 2,458 from the preceding week
and 658 under the same week last year.
Cotton Consumption.
Br the Associated Press.
Cotton consumed during April was re
ported yesterday by the Census Bureau
to have totaled 470,685 bales of lint and
54,731 of linters, compared with 494,187
of lint and 50.082 of linters in March
this year, and 366,481 of lint and
52,174 of linters In March- last year.
EARNINGS REPORTED.
NEW YORK, May 13 (/P).—Per share
earnings of corporations reporting in the
past week with comparisons with the
previous year Included the fololwing:
1933. 1032.
Quarter ended March 31:
Noranda Mines v.$0.30 >0.41*
New Jerser Zinc fi
Conscl'd Film Industries 12 .17
Grand Union Co •.07 t.32
Year ending December 31:
United Liiht A Power....... .*4.01 tl.OS
Cont. Gas A Electric *15.85 *23.83
Year ended Dcember 31:
Louisville Gas A Electric tl.02 MM
Standard Power A lint .38 2.68
•Preferred.
t Common
JO® combined class A and a mi—