Evening Star Newspaper, August 22, 1927, Page 13

> _——— DROP IN REVENUE SHOWN BY MARYLAND RAILWAY Decrease in Coal Shipments First Two Weeks in August Assigned as Cause. Bpecial Dispatch to The Star. BALTIMORE, August 22—Falling ©ff in coal shipments is reflected in ‘earnings of the Western Marylana ‘Railway for the first two weeks in August. Estimated figures for the period show receipts from all =ources of traflic of $802,350.91, again«t $990,. 417.16 last year, a decrease of 19 per cent. Revenues for hauling coal showed a comparative loss of $191, per cent. Every class of tri cept shipments in less than lots and miscellaneous, showed creases_compared with last year. The Western Maryland also had an unfavorable month in July, and be- cause of that fact and the losses in August total estimated earnings for the perfod from January 1 to August de- THE EVENING BTAR, WASHINGTON, D. €., MONDAY, AUGUST 22, 14 are only $46,912.69 ahead of 1926. Of this gain, $34,463.41 was contrib- uted by coal traffic, movement of which was well ahead of 1926 until the beginning of July. The Western Maryiand is essentially a soft coal carr deriving more than half of its total earnings from transportation of that commodity. The coal industry has been sorely depressed throughout 1927 thus far, but operators are hopeful that with the advent of cooler weather demand for the product will be stimulated. Some authorities believe the turn will come within a month. HIGH RECORD IN TOBACCO. Report on Week's Receipts and Sales of Maryland Product. Special Dispatch to The Star. BALTIMORE, August 22.—Both re- ceipts and sales of Maryland tobacco last week set high recor the former with 3,357 hogsheads and the latter with 2,049 hogsheads. Demand con- tinues very good, with prices holding firm at the high levels established several weeks ago, despite a stock in State tobacco warehouses of 15,624 hogsheads. Quotations today for leaf tobacco, per 100 pounds: Inferior, 5.00 to 8.00; frosted, 3.00 to 4.00; sound common and greenish, 9.00 to 16.00; good com- mon, 17.00 to 30.00; medium, 31.00 to 40.00; good to fine red, 41.00 to 55.50; .00; seconds, common to me- . 5.00 to 24.00; seconds, good to , 25.00 to 45.00; upper country air cured, 3.00 to 25.00. S oS It's always to a man’s credit to pay cash. ke GENERAL 1927. NEW YORK GRAIN PRICES. NEW YORK, August 22 (#).—Flour steady; Spring patents, 7.60a8.00; soft Winter straights, 6.25a6.65; hard Win. ter straights, 7.25a7.60. Rye firm: No. 2 Western, 1.115 f.0.b. New York and 1.09% c..f. export. Barley steady; malting, 8915 c.if. New York Wheat futures opened firm; domes- tic, September, 1.437% asked; Decem- ber, 1.48. local distributors we offer th OW, in the full swing of our factory’s leadership in sales, we want thousands more car owners to join this growing trend of top quality tire buying. So beginning tomorrow morning at 8 o’clock A SPECIAL TRADE-IN SALE on the General Tire. This time bigger values than ever...the greatest of this or any year. With prices so low and our special allowance for your old rubber, it will cost you less than you fermerly put into tires of half the mileage. We are going to take into account the good-will value of new custom- ers, the word-of- mouth advertising thru thousands of new users rolling on Generals and running up their biggest mileage records. ~That is Every make, every size, taken in trade on Generals. Now is the time to equip for perfect running the balance :? this summer, perfect non-skid during the winter months and still your Generals will be practically new for next season’s driving. Have you noticed any peculiar wear in your tires? Regardless of make, see us. Ask about our proper sizing for new- est model cars. Adds tgousands of miles. ‘The used tires go on sale as fast as we take them in. Open a charge account. Just mention the stores where you have accounts and tell us to charge it. why both we and our cus- tomers find that the trade-in pays—pays us for the extra allow- anceswe makeand pays you not only in immediate sav- ings but in satisfac- tion that outlives the service of sev- eral ordinary sets. No need to delay when you can get Generals during this sale at less than your usual investment for tires. 13th & Eye Sts. N.W. Lfifl,e @, CO INCORPORATED Open Evenings During This Sale Special for owners of FORD, CHEVROLET, DODGE, ESSEX AND ALL OTHER POPULAR PRICED CARS During this trade-in sale we also extend The Famous G-T-A-C Payment Plan GENERAL TIRE ACCEPTANCE CORPORATION P&t\\y Main 67 special opportumty/ For those who want the convenience of easy terms All or Part of Your Trade-In Allowance Accepted as Down Payment~Terms to Suit You on the Balance A matter of nickelsand dimes FOR A FEW WEEKS and you get the extra economy of Generals FOR A YEAR OR TWO AGTIVEBUSINESS INFALL FORECAST, Bank Group Cites “Money and Crops” as Factors in Estimate Outlined. The Contin Banks of ( report on cite money factors 1 7 and crops as twe the situation le that s Fall.’ ggregate American farmer money income of the this based 's crop pects and price is slightly larger than the fi : It clearly bespea K Gross farm income for_the ended July 1, 1927, was 4.7 per ¢ smaller than in the preceding crop year, but was 8.8 per cent larger than tho "average of the five preceding vears, in this publica- tion for 1925 926 have erred on the side of conservatism. 1f a we are underestimating the incre; in the farmer's money income thi he composite condition of all crops he same as ths the outstandi C shows v:‘ op condition and Montana | the best. Wheat, Corn and Cotton. The wheat crop should be million bu wan last year. Wheat grow et at least 40 million_dollars more for this cro than for last year's A poor corn crop stands out as the most unfavorable item in agricultural production. ever, should mean an increase of some 60 million dollars in the aggregate value of this short crop. Cotton promises to run between 14 and 15 million bales, against nearly 18 million last year. The cotton situa- tion is healthy both from the point of view of the planter and of the manu- facturer, Income from hogs is likely to be some 5 per cent smaller than last year. Beet cattle will continue profitable. The fruit grower is out of luck as ze of crop but higher prices will et the crop sh to largely The ly 18,000,000 bales—w u\\e‘l§ than years prece s a godsend to textile industry of foreign countries, especially Ei /‘latd 4 ar ending June 30 the total E\rmrl of c was 3,171,000 more than in the p"oro the total value, $860,000,000, was §34,- 000,000, or 6 per cent, less than the smaller number of bales exported the preceding year. Nineteen twenty: Lven Liomises to ba more prontable to cotton growers. We are inclined to view the present situation as promising 14,000,000 to 1 0,000 bales. This, with the in- creased carry-over of about 2, ,000 from the previous crop vear, gives a healthy situation, whether regarded from the point of view of producer or manufacturer. Money Tells Business Story. For years rising prices accompanied business expansion and falling pric went along with business contraction. But last year and so far this year the price barometer has been a flop, for falling prices have accompanied a record volume of business activity. But money still tells the story of business. The simple formula is that tight morey regularly precedes business de- gression, while easy money either stimulates or sustains business activ- ity. The only problem, then, in apply- ing the formula, is to determine what the state of the money market will be this Fall. To do this it is necessary to analyze the three most important s y market, t and open market policies of the reserve banks, and the demand for funds. First as to gold. Everybody knows that the United States has the largest stock of monetary gold of apy coun try in the world. ‘The huge amount of gold in the United es has made for relatively low money rates and adequate credit during a period when business has been extremely active. The old notion still held by some business men, that easy money is a sign of poor busines dates back to the time when it was often necessary to think in terms of gold deficits. That money can be ez when business is active is explained largely by the magnitude of the pres ent gold surplus. The other conclusion to be drawn from the gold statistics noted above is that the continued importation of & has made for the continuation of e money. Indeed, gold holdings are now so large that a sizeable amount could flow out of the country in the course of foreign trade without causing any arked tightening of mo 11 exports of merch 1y wheat and cotton per cent, year. But ey dise—par- Second Important Factor. ‘The reduction in the rediscount by the Kansas City Reservé Bank followed by the St. Louis, New York, Boston and Cleveland Reserve while made possible by the easy st: of the money market, was the cause of extended newspaper comment Since then the Dallas. Atlanta and Richmond Reservs Banks have the procession. And the prime commerclal paper York—the best indicator of tion of money market—soon a first reductions declined to 3% per cent. This decline was unsea- sonal, just as a 4 to 41; rate in May, June 'and July had heen unseasonal. | In August money should show signs should ease off. aren't behaving | ing of | is part of the story ter of redis take igible pap to July it mercial paper rates as they should: rediscount rates Of course, in the ma counts member b initiative . by offeri But by lowering the r a period of the vear when a e in discountable pap to oceur the reserve banks to exert more than moral pr Collateral evidence as to the | able strength of the commercial de- | mand for funds this Fall can be | found in a comparison of certain busi- | ness indices this year with the same figures for last year. This evidence | has to do with trade, industrial pro- duction, building and agriculture. Trade Volume Pointers. Trade volume is indicated by car loadings and bank debits. For the period of May 14 to August 6 the| total of car loadings was 4 per cent lower than for the same period of 1926. Figures showing merchandise shipped in less than carload lots tell substantially the same story Bank debits, which reflect trade pay- ments, give a slightly different pic- ture, Splitting the difference between cludes both car loadings and bank debit figures. we find that the volume of trade this year is about the same as last and the Autumn pick-up in trade will start from nearly the same level as last year. This argues a trade demand for funds of about the same proportions as last Fall. The Federal Reserve Board's index of industrial production—which in- mnullctuflnl and min- But in | — usually | | of becoming firmer, while from March [_ So com- |? able | 8 EGG PRICES MOUNT IN LOCAL MARKET Slight Increase in Butter Also Noted—Fruits and Vege- tables Active. An'flh r increase in the price of s was re xmw-d this morning, the stated, “and heavy ent _re: went to The fresh lected 35 cents, while ready sale at 38 and 40 l‘h'\ Dealers this n #& prices pre 1 about rning predicted that ably will continue high ecember 1, when the 1 be put on sale in of a fraction of a cent er ]»nr"fll in the larger butter was reported this morning, g the already firm condition Wholesale Prices. 1-pound prints, 44a 9. killed—Beef, 18a20; 1 Live stock—Calves, choice, 13a13%; medium, 10al1; thin, 7a8; Spring lambs, 13a1313 Fruits and Vegetables. Report on fruits and vegetables, com- piled by the Market s Service B reau of Agricul m ware and and pin} J beral; demand Ir weaker; 5-doze 5025.00; dition loy 4.00. Green peas—Supplies light; demand moderate, market firm; Colorado, 45- pound crate: 026.00. Onions- limited; demand moderate, market about stead; Mas- sachusetts, d sacks, Yellows, No. w York, 100- . 8. No. 1, or- ion, 2.00a2.25. few ordinary | pound dinary cond Fruits and Potatoes. pplies liberal; demand htly weaker; Virginia, Elbertas, large to very 00a3.00; best mostly 2.50; large to v Bonas large and Nlee hashen lbertas, No. 1, 1 1 Pears—Supplies light; _ demand moderate, market steady; California, hoxes, Rar(la"t!% medium to large size, ligh New Jersey, 150+ r\uund acks, Cobblers, U. 8. No.1, Sweet pmnmee~5umwhes moderate; demand light, market dull; North Carolina, cloth-top barrels, No. 1, | 0a4.00; poorer low as 3.00. Old Tennessee, bushel hampers, Nanecy Halls, No. 1, 1.25a1.50; few | higher. Melon Demand Light. Watermelons—Supplies light, market steady h Carolina, boat | per 100 melons, receipts, Thurmond 3 and 30 pound average, 50.00; \,2 lot ' sales, North_Carolina, d-tiers, | : demand 5 a and Mary- | bushel baskets various varieties, | few higher. | *“Blackberries—Supplies Nberal, not cleaning _up; demand light, market steady; New Jersey, 32-quart crates, Black Diamonds, 4. Cauliflower—Supplies light: | limited, market steady; | crates, few sales, 4.00. . SUGAR MARKET UP. NEW YORK, August 22 (#).—The local raw sugar market was quiet early today and as no fresh business 10 to light prices were unchanged | at 4.4 for Cuban, duty paid. | The raw sugar futures market was | quiet, but the undertone was firm. Covering by September shorts and buying of the later positions by trade demand Colorado, pony houses and at mnldd\ prices were net unchanged to 2 points higher. The dy spot market and reports that was still showing interest in raws were factors on- the o changes occurred in refined, with ne granulated ranging from 5.60 to . Withdr s over the week end were of fair proportions, but new business was limited to nearby re- <, | quirements only. Electric Output Gains. CLEVELAND, August 22 cial).—Ohio’s production of electric rrent for light a power is in- creasing considerably faster than that of the country as a whole, statistics show. Ohio produced 4,78%,385,000 lowatt hours of electric. energy last a gain of nearly 14 per cent States pro- kilowatt hours, cent for the (Spe- . _The United 3,398,314,000 ase of 11.9 per over 192 Cuced an incre year. Production of el the past five 3 per cent, whi | has increased 54 that of the wumrv per cen STANDARD COPPER PRICES. LONDON, August 22 (#) Standard spot, £55 Gs; fu , £55 128 electrolytic copper, spot, £62 58: 2 10s; tin, spot, £289 128 6d: 4 1is 6d; lead, spot, £22 futures, £ s §d: zinc, spot, 17s 6d; futures, £27 15. 6d: Ing—was appreciably higher the first six months of this year than in the corresponding period of last year, Building, as measured by the num- ber and value of permits, was only slightly lower for the first six months of this year than in the correspond- ing period of last year. And con- struction actually under way gives reason for the belief that there will not be such falling off in building as to bring about a heavy shrinkage of demand for funds in that quarter. A three-way analysis of the In- fluences affecting money then seems to show: that gold, if it affects the situation at all, will work in the direction of easier rates; second, that the rediscount and open market pol- icies of the Reserve banks are likely to maintain easy rates: third, that the Autumn demand for funds should he about as large as last year. net result is that, at most, we not e: énect more than the seasonal in- creas®in money rates that occurred 1 in 1926.