Evening Star Newspaper, November 20, 1927, Page 43

SAVINGS & TRUST STOCK AT NEW TOP At 525 It Becomes Highest- Priced Bank Share Listed Here. BY EDWARD C. STONE. Stock of the National Trust Co. the Washin Stock Exchange vesterday at taining a new high mark for the year and holding its record as the highest priced bank stock in the Capital. The last previous place at 321, Yesterdav's transfe cluded two °0-share and two 10 share lots. The market closed with 524 hid and 526 asked As quotations now stand, nearest price rivals are tional and Washing Riggs has sold as hi 510 vear, the last sale hei 490 the last sale in Washinzton Loan & Trust was recorded at 500, with the high for the year an eighth of a point higher. Capital Traction steck closed week with a 40-share turnover 209%, 43 shares of Potomac Llec Power per cent preferred moved At 2061, while the same corporation’s € per cent prefe ed brought 110 Washington Rail v & Electric pro ferred sold to the extent of 55 shares While there was much bid- the now famous Railway common. no sales developed. the ma g with a bid of 443 and 418 sold on sale tool the stock’s Riggs Na this while ch as the ington Gas 3 ng at 8515 ocery mreferred rewistered Merchants’ Transfer & Storace preferrec 105 old off fractional 50 shares of National Mortzage & In- | vestment preferred came out at Local Bonds Also Are Strong. The bond division was alse strong with Saturday trading unusually heavy, the reason heing ascribed funds released by the redemption of the second Liberty loan. as a whole experienced the broadest local hond market in months. | Yesterday's transactions opened | with two $500 transfers of Washing- | ton Gas 5s at 10314, an eighth higher | than they have previously sold this vear. Washington Railway & Electric general 6s next appeared on the board | at 1041, fractionally above the last | sale. Georgetown Gas rame ont at 1027, a half point above the year's | best previous s: Capital Tr 55 commanded . and Washinzton Gas 6s A, moved at 103% for baby bonds The day’s heaviest hond trading took place Jate in the session when three sales totaling $25.000 were recorded | In Potomac Electric consolidated 5s at 1031, an advance of 13 over the best previous 1927 nrice. There was much other bond hidding. but too high | prices were asked to stimulate further trading Five important icsues on the lneall hoard are now heing quoted ex-divi- dend. They are the two Potom Electric Power preferred stock, Wash- ington Railway & Electric preferred and common, and Lanston Monotype. | The Saturday calling of the unlisted securities revealed few changes. The bid on Miller Train Control advanced from 113 to 2. Munsey Trust stood at 152 hid and 160 asked, while the bid on City Club 7s camc down from 55 to 50. Governors List New Stock. The hoard of governors of the local exchange have listed for trading the $1.000.000 capital stock of the Termi- nal Refrigerating and Warehousinz Corporation, havinz a par value of $50 per share. The stock is being quoted on a when-issued basis and 18 to be exchanged share for share of the stock of the Washington Market Co., the latter stock now having been taken off the hoard. Several months ago the stockholders of the Washington Market Co. voted to change the name of the firm to make it comform more closely to the kind of business heing conducted. The old name was not considered broad enough. More than 98 er cent of the shareholders favored the| change. The chairman of the hoard | 5 Charles J. Bell. the president Wrisley Brown. and the American Security & Trust Co. is acting as transfer agent in the exchange of stock. Bankers to Expand Service. Bankers at th. Houston convention were told that the day for the bank of limited service is passing. Depart- mental banking with its wide variety of service is rapidly gaining in popu- larity. Instead of transactine certain husiness in one hank and other busi- ness at another hank. the hank cus- tomer is finding it to his convenience to transact all of his business under one roof. ‘The passage of the McFadden hill has done much to advance depart. mental hanking. especially among ) tional bank members of the Wederal Reserve System, who have since o tablished savings and trust depart. ments. Tltimately. convention speakers claimed, nearly all hanks in the Unit. @4 States will he departmental banks, | rendering a similar service. { | | 61y RErios “ Federal Reserve Changes Desired. When Congress convenes it is to he memorialized by the banks that stockholders of the Federal Reserve Bank of Dallas to amend the Federsl Reserve act so that naper eligible for | discount _will include demand and wight drafts secured by shinping docu- ments covering domestic shipments of non-perishable. readily marketahle staple agricultural commodities The | member banks in the Dallas district | assert that failure to include this class | of paper was evidently an oversizht on the part of the framers of the act. and inasmuch as this hars certain types of commodity drafis that are extensively handled by member hanks | from heing rediscounted. steps should | be taken without further delay to| remedy this situation. Hoover Writes an Prosperity. The Magazine of Wall Street vestel Aav observed ite twentieth hirthday with a special edition. The publi etarted in 190 as “The Ti Among the special articles in anniversar is one by Herhert and another president of change, on . Simmor York Stock “Speculation CONSTRUCTION ACTIVE. NEW YOr ovember 19 (@) Activity in larze construction oper tions in the I'nited States promises ta hold at a fairly high level, based on the of new wor * reaching the propos ev value of co the last week risin from £39.000,000 the week h Graw-Hill Construction Daily report Pronounced activity in school con- struction was a featu: NEW YORK EQUIPMENT. Navember 19 (P).— While buy electrical equipment by central station companies is on 2 somewhat reduced basix, the demand from indus s is picking up. Elee. 1 World reports. Buying by the utilities is expec to imp after the turn of the vear. In the Southeast a number of fextile mills have an- nounced expansion programs which eall for expenditure of inore than . n National | on Loan & Trust. | to | The week | ISPAIDON U. S. Note—This is the first of a ArMcies on the finances o 1 Government next ' published in December. he' Nation's resources It pays to lend money I Ssam. for almost always he liquidites | his debts in a better dollar than that which he horrows. The dollar which | {we lent him in order fisht the [ World War and to help aur alties in doing so had a haxinz power of | {ipst a little over 50 cents. The re sult was that while the nominal, the par value of the money which we lent | to the Government was over $24.000, | 000.000. these dollars served to buy no | { more woods than $12,000.000,000 would | i hiave bought in 1913, Since the clese of the war repayments of borrowed | money have been made in a dollar | having a purchasing pow r—on the aver of 61 cents, but this was| | largely due to the very low value of | | 44 cents in 1926. Since 1920 the dol- | {lar h been fairly stable a pur- | chasing power approximating two- | thirds of its pre-war value. If it pr serves this status until the debt is all | paid, eay for the next 30 years, then | the bond holde 1 have regeived | pproximately $1 000,000 of pur-| chasing power for the §1 000,000 of purchasing power which they lent the Governme according n - statistics compiled by the Bankers’ Trust Co. of | w York | The same thing happened to the | { people who lent the money with which | | the Civil War was foughf. They took | | their_money into fhe Treasury at| Washington, and into the subirea | uvies at New York and other cities | nd left it there as though it were | votive offerinz. not knowing that they | wonld ever see it azain. This was | true especially in the early days of | the war after the disaster at Bull Run and when McClellan was making h ineffectual campaign inst Rich- {mond. The dollar which these de- voted mtirots lent for the conduct of | the war had a purchasing power of | about €4 cents. The dollar in which | they were eventually repaid had a purchasing power of ahout $1.05— azain 1t paid to trust Uncle Sam, Made Money on Mexican War, | i to Uncle | The old gentleman fared hetter in connection with the financing of the | Mexican War period. He received a dollar with a purchasing power of a dollar ard 4 cents and repaid this borrowed money in a dollar with nurchasing power of about 9% cents, but in his financing of the second war with Enzland he fared very bad- Iv, for he received only a 50-cent dol lar and paid back an S0-cent dolla Howeve this was an unpopular war and very difficult to finance. The same thing is true for the Revol tionary War, but for different re sons. ~ People ‘of means hesitated to lend money to the Continental Con- gress, which bad no right to Jev taxes, and therefore no means of as- rinz repayment of borrowed money. Hence it was that in the early days of the war resort was had to issues of paper money, which followed the El‘llal course of exe ve fiat money issues and shortly faded out of sight. If it had not heen for the success of Arthur Lee, Silas Deane and Col. Laurens. of John Jay and John Adams and above all of Benjamin Franklin in sccuring aid from Louis VI. t0 A small extent from Spain and a loan guaranteed by France from Holland, and of Robert Morris, in his never-to-be-forgotten efforts af home the outcome of the Revolu- forary War mi 2 ry e ght have been very From the close of the war until the inauguration of Washington, John Fiske. the historian, aptl ed the critical period of our histo when there was only the semblanc of a central Government, even the interest upon all forms of public debt, | Loth foreign and domestic. fell into arrears This condition led to the m_ln_nll(m of the present Constitution giving the central Government the | taxing power and other definite gov. | ernmental functions. The inaugura. | tion of Washington as our first Presi. | dent at Federal Hall, in New York, on April 30. 1789, and the appoint. ment by him of Alexander Hamilton as the first Secretary of the Trea. ury was followed immedi: tely b steps to fund the revolutionary debts | of the Continental Congress and, upon lheuur:e_m xd\'ice{ of Hamilton, of the | assumption and funding of the State debts. When the revolutionary debts were all funded they were found to amount to ahout 00,000, of which was due in for-| i es—$7,562,000 to thz Prf‘m‘!\ government, $250,000 to Spain and $500,000 to Dutch investors. The French and Spanish debts were paid | in full by 1796, partly from the pro-| ceeds of new loans made in the Dutch markets and partly by the funding 4:5 $2.340,000 of the French debt in into domestic debt. Our loans t Holland were all liquidated by 1809. Since then we have only directly | borrowed abroad in two or three in- stances, but at times foreign investors have held considerable amounts of | lhf? securities of our Government, | which they have hought in the open | m ket. i The Louisiana Purchase. | One of the most interesting of the | new borrowings abroad took place | when, in 1804, durinz Jefferson's ad-| ministration, we bought all of France's | ms in continental United States own as the Louisiana Purcha this involved an expenditure of 000,000, This sum was paid by giving nee $11 6 per cent honds aims of American France, chiefly for ating 0,000. The opportu- nity to make this purchase arose be- se of Napoleon's necessity for re- purces with which to fight his wars cainst the other FEuropean powers. Incidentally, it may hbe mentioned that only short time previously apoleon taken Louisiana from Spain. The Louisiana Purchase ga nx title not only to the present State of Louisiana, hut also to the territory comprising the present States of Ar- ansas, Missouri, lowa, Neb th and South Dakota: a part of the nesota. Kansas, Wyoming {and Oklahon nd ‘to about one- lof Colorado, area lar, Great B rmany, pain. Portug: In 1922 the Cen the wealth of these S 000,000 Other acquisitions of terr id for by sales of hond of Florida from Spain ia $5,000,000; worth in 1922, ac- 10 the census, $2,410,000,000; the acquisition, between 1845 and 1833, of the greater part of our Southwest territory, also of California, by the annexation of from Mexic an out 000—n territory now valued at $30, 741,000,000 Then came the purchase of Alaska from Russia In 1867 for 87,200,000, of the Philippine Islands from Spain in 1898 for $20,000,000, and of the Vit Tslands from Denmark in 1917 for $25.000.000. A recent esti- mate of the wealth of the Philippine Islands s §2.747,000,000. We have had Ni 50 10 the of Min- | st ¥ mbined tes at $60,8+ r rding | honde- | tion for the first Liberty | war {1812 added $82,12 | ating |1t ory. chief- | eAdy to take un. e the | P2JiCY in reeard to taxation changed THE SUNDAY BETTER MONEY THAN BORROWED NATIONAL DEBT Eight Billions Lopped From Great Burden Brought About by War——Payments‘ Purchasing Power Greater. ducad in continental United States of total value of over $684,000,000, Constructive Loans. Other constructive for which the money has been found by borrowing are § the pur- $2.000,000 for chase in 1792 of stock in the first bank and in 1817, of the United States £7.000.000 for the purchase of stock in the Second Bank of the United States To aid in the construction of the first railway to the Pacifie, loans were made of $6£.000.000 n K cent Currency Sives” they used fo be called; while that sreat waterway from the Atlantic to the Pacific, the Panama Canal, which e the . ernment. including equipment and fortifications, about $100,000.000. was financed out of Treasury surpluses, but was reimhursable in case of need to the extent of $375.000,000 from P ama Canal bond issues. Up to the time of the war only $133.000,000 in round figures, of such honds had bheen sued. The halance of the authorized te was merged into the authoriza- loan. ailrond companies, with ago repaid The Panama purposes « The Pacific one small exception, lon the loans made to them. Canal has earned gros opened to traffic on August 15, 1914, to June 30, 1927, from transit and busi- ness revenues, $303.728.000. As the operating expenses have to 799,000, the Treasury has net revenue from thi £50.979.000. an av vear. This is, age. the net income fiscal years having averaged over £15.000.000, amounting to $17.433.000 in the fiscal year ended on June 30 last. But, after all, math has heen the chief cause of the creation of publioc debt in our country, as it has been in other lands. As we have seen, the Revolutionary was responsible for an_initial debt of some $77.000,000, the War of 000 1o the debt, the Mexican War and its aftermath re- ilted in the creation of a debt of \754.000. The Civil War piled up debt of $2,694.000,000 and the Great War was responsible for a debt nearly 10 times greater—namely, for $24, 000,000. Traditionally, the American people have believed in promptly pay- ing off debts and therefore have cheer- fully borne the burdens of taxation which this involves. Plznned Early Payment. Hamilton had no sooner succeeded in funding the debt inherited from the period prior to Washington's ad- ministration than he was found advo- cating the creation of a sinking fund for its liquidation. Notwithstanding the necessity of some new horrowing, by the close of the Federalist period, the old domestic deht had fallen §2 768,000 and the foreign debt 4,000. But the nearer war with France, and Treasury deficits involved in putting the new Government on its feet, cre- the new city of Washington establishing lighthouses, putting down the outbreak in southwestern Pennsyl- vania against the imposition of in- ternal revenue taxes. the creation of a customs service and a postal serv- ice, had mvolved new borrowing of some $12,737.000 xo that when Jeffer- son came into office he found a debt of $83,038,000. Notwithstanding the increase made necessary by the pur- chase of Louisiana the debt had fall- en to $45.210.000 hy the end of 1811. Four vears later the war expenditures had raised it to $127.335.000, From then on until 1834 the debt steadily docreased until at the close of 1834 it was entirely liquidated. This result was due to an important extent to the large sales of public lands. Treas- ury deficits, the Mexican War and the acquisition of Texas, the South- west territory- and California were some of the causes which accounted for the fact that just prior to the Civil War, we again had a debt, az- tment _of 000 a however, aver. in the pa war and its after- Lgregating on June 30, 1860, $64,844,000. The Civil War raised the debt to a maximum of 44,649,000 on August 31, 1865. The amount of this debt jwas so appalling that at the time many thoughtful people felt that it wonld be a hopeless task to liquidate any important part of it for years to come and pamphlets and news- per articles were written to show that a “national debt is a national blessing.” One writer summed up his conclusions in the following words: “Emerging victorfous from: the most gigantic war the world has seen, with the rescued Republic on our shoul- ders, it was becoming that as we {marched home to peace and to labor, some of us should exultantly propose to pay off instantly the huge debt of our great salvation. ‘Twas a war song. It was pleasant to hear. | But the thing proposed cannot be done. would be impossible to raise the money to liquidate it,”” and he con- cludes, *Let us aceept the public debt as public wealth, as the bond of polit- ical and national union, as the safe- guard of indust KL the basis of anking, as our orphans’ and widows® funds The national debt rightly managed will be a national blessing. Outcome Was Happier. However, notwiths nding the view taken by the writer just quoted and Ly many others at the time, the sub- seq developments made for a happier outcome. The Nation took a different view of the proposition and, as a matter of fact, the revenues from ion proved to he so great that it was a comparatively easy mat- ter to cut down the deb nd frequent- Iy the Secretary of the Treasury was compelled to go out in the market and buy bonds with the surplus rev enues at the lowest price for which they could be obtained. Tt happened that the industrial interests of the country were very strongly opposed to reducing the customs duties and the pecple generally upheld this posi- tion, re-electing to the seats of power in Washington those who were in favor maintaining high customs duties. The usage: had grown up during the war period of maintaining high internal revenue taxes asa rough way of harmonizing the Interests of !Illl)flr“’l! and manufacturers and so it hannened that there was not anly opposition to a reduction of customs duties Lut also opposition to a reduc- tion of the internal revenue. This state of affairs made it necessary for the Secretary of Treasury constantly to be in the market for Government honds and made it e ble to renew at lower rates of interest such por- tions of the debt as he was not quite Before the zeneral of the deht had heen reduced from the maximum at which it stood of $2,845.. 000.000 on August 31, 1865, to $2.156.- 000.000 ten vears later. The average amual rate of reduction after that wag slightly slower, hut proceeded v:;’ dily ‘m»md vear to vear until 1393, when " the debt stool £961.000,000. O The necessity of huving gold with which to maintain the convertibi f‘\r the |~nnrrdm:!;nm and the Spanish ased the debt 10 a max £1.436.000.000 hy 1899, 'mt\"f':'r:‘r: that noint it azain declined, reaching A new minimum fust hefore the onen- ing of the Werld War in 1914, when no estimates of the wealth of Alaska. However, it may he noted that the otal wvroduction of gold in Alaska from the carliest mining in 1880 to the present time is estimated at ove $365.000.000, and of silver at over 1 000.000 fine ounces. While, since 1879, when statistics first began to be pub- it rtood at $1.188,000,000. so that the logie of events shawed that even thourh a national debt might he a na- tional hlessing. vet in a country like anrs, where wealth is increasing ran. idlv, it iz anparently imnossible to so »diust Goverpment revenues that there will not ke a surplus. and this $ 100,000 in mew electrical equipment. lished, Alaska has lu;fl goods Fro- cAR be used fa no other way so ad- STAR. WASHINGTON, PRIGES G0 HIGHER - IN'STEEL MARKET ;Continued Heavy Buying of Copper for Export Lifts I the Price. | By the Associated Prese NEW YORK, provement in prices of many of zteel featured operations maiket during the week. seemed to center largely in railroad purchases of 1928 delivery of vari ous equipment, while further relea of contracts by railr s cpecterd Fabricating mills are anticipating the placing of liberal tonnage owing to the various gonstruction work planned. Important contracts for future deliv- ery were ulso reported pending for pipe and gas lines. Pig iron demand ¥ steady. Continued heavy huying of copper for export with an improvement in the demand for domestic consumers. has been reflected by an advance of 1g in the market for electrolytic cop- per, with sales reported at 135 de livered in the Connecticut Valley. <ome cases producers are said now holdinz for 13%. Tin prices advanced rather Iy and were established at a about 2 cen of 19.—Tm grades November Activity to be sharp level of above the low the vear. Consuming demand showed decided gain, with fair pur chases also for shipment the first quarter of the v Lead was sted Producers were reported as bookinz a fair business, but were also said to be unwilling to sell heyond December shipment at present prices. Zine prices displayed some recov- ery from the ent setback. There was a fair inquiry, with the bulk of orders for shipment after the turn of the year. Ore unchanged. ntimony was steadier with less pressure on the part of sellers here of spot and nearby shipment offers. Consuming demand was fair. A. C. L. CO. DIVIDEND. NEW YORK, November 19 (&) An etxra dividend of $2 was declared today by the Atlantic Coast Line Co. of Connecticut, a holding company, in addition to the regular quarterly of £2.30, pavable December 10 to stock of record November 30. This bring dividend pavments for 1927 to § against $11 in 19 CLEARINGS SHOW GAIN. NEW YORK, November 19 (#).— The Northern Jes Clearing House Association reports clearings of $49,385.308 for the week ended No- vember 18, against week before and $4 ago. 08, a year vantageously as in freeing the coun- try from debt. In the eight years which elapsed from August 31, 1919, when our pub- lic debt reached its maximum of $26. 96,076,000, to August 31, 1927, when it stood at $18.309.625.000, there was a reduction of $8,287,096,000, or of over a billion dollars a year. If such a rate of reduction can be maintained for the nmext 187 years, the Nation will then be entirely out of debt. Of this amount, $1,752,000,000 would be provided for from payments on ac- count of principal made by the for- eign nations owing us money, leaving $16.557,625,000 to be provided by the taxpayers. However, if it is deemed wise to reduce debt payments to an average of $750,000.000 a vear, it would then take 241, years to liqui- date our obligations, foreign debt receipts on account of principal would take care of $2,640,- 000,000, leaving the taxpayers to pro- vide $15,669,625,000. Or the debt could he paid off in 30 vears if the Meople are taxed $500,000.000 a year, or for £15.000,000,00, and the ~balance of eign debtors, from payments on ac- count of the principal of their debts which by that time should have come to hand. Admittedly, there can be no bhetter economic preparation for emergencies which may arise than to clear away as promptly as possible the wreckage nd the burdens of an emergency pe- riod through which a nation may have had to pass. It is argued by some economists that a war is paid for by the generation which conducts it and that no part of that burden can be passed on to future generations. Like many statements which have met with approval because of the standing of those who have made them, this pronouncement is only partly true. It is perfectly evident that the actual materials used in the: conduct of a war must be secured while the war in progress, the clothing for the sol diers and the food which they con- sume, the ammunition and ordnance necessary to the conduct of the war 1l have to be obtained. from day to and week to week as the war progresses, and are all consumed in the same way so that, in this sense, |the generation which conducts a war finds the resources with which the © 1< carried on. But, on the other nd. it is true that the financial bur. den of the may be passed on for an indefinite period. Still Burdened by Waterloo, For instance, France is still dened by the expenses of her with England and other n. ended with the hattle of Waterloo, in 1815, and by the expenses of the Franco-Prussian War in the early 70s, Similarly. a substantial part of the debt of the British people tod incurred in meeting the expen. neatly 100 vears of ‘war, which n 18 bur wars ended Italy is burdened by debts which have come down to the nation from previous generations. It does not matter that these debts are in- ternal debts owed by the nation to the saving classes of its population. They are debts for the payment of interest upon which the nation. as a whole. must be taxed, and. therefore, a public debt so long as it remains unpaid involves a burden upon the taxpayers of the nation, and so true i« this that an examination of the in- come accounts of the nations of the world today will show that in most cases the charge of the public debt is one of the heaviest burdens which the nation has to carry. The reduction of indebtedness fol- lowing each perfod of crisis in our country's history has not so much heen one of policy on the part of the Government, although there has al- ways heen a strong sentiment in favor of debt reduction, as it been that the growth of the country in material resources has heen so great that the Giovernment has nearly always been in a position of having more or less substantial sums of surplus revenues, It has been comnaratively easy in the vast for the United States Govern- ment to keep out of debt. It mav not he g0 easy to follow this course in the future now that there are no more new lands to bhestaken up and now that the population is becoming derse and our condition is hecoming more nearly that of an old country. There fore it would seem to he a part of nrudence and good judgment to liauidate, the present indebtedness of the conntry as promntlv as possile while it is still easy to have surplus funds, because tite’ time mayv com pacsibly sooner than now seems prol ahle, when this will not he easy and when we will find ourselves in a posi- tion where we may be unable to liquidate indehtedness, 4Canv, FEIEE) in the! as fair and the tone to the market | In| 26,760,423 the | of ‘which amount | $3.309.625,000 provided from our for-| fons which | N. C. NOVEMBER 20, 1927-PART 1.' FLOOD OF MONEY BOOSTING PRICES Bond Income Rate Low—Po- | litical Outlook Playing | " Larger Part. BY CHARLES F. SPEARE. | Special Dispateh to The Star NEW YORK, November 19.—The | income returns on all hizh-grade in- | terest and dividend-payinzg American securities have heen comisg down this week as funds have Rowed in Jlume inte the security markets. o rontrolling factors in this situa- om have heen a scarcity of supply of hoth honds and stocks and the e in money r These are likely to exert their influence for some time to come, Bonds have already entered the zone of values that distinguished the vears of cheap money in the early art of this century. United States | Treasury issues this week have sold helow a' 3.20 per cent basis. Liberty 3125 have risen until they provide the purchaser With only a trifle over 3 per cent. First mortzage rails are all close to a 4 per cent yield: good 41, per cent public utility bonds are up to about par, and the best of thd 5 per cent indus mortgages are hetween 104 and It is apparent that the day when the incomes from a select list of secur ties would materially assist in covel ing the cost of livin Se Stocks have same road as bond it a swifter pac )f an average for industrial shar high as that now obtaining. Neither is there a parallel for the prices be- ing quoted for a large group of rai road securities, many of which did not exist 10 years ago. The com- posite figure of all of the income bonds, preferred and common stocks of the railronds that went into re: cefvership between 1914 and 1 subsequently issued new secu replace those on which there I default would compare very ably with that of any other period. Public utility stocks are not so high on the whole as they were two years ago when the craze for combinations and the attendant holding company was at its height, though the prices on the best of these stocks are in velatively the same position as those of an equivalent type of railroad and indnstrial issues. There remains, therefore, a com- paratively small group of what may be called investment railroad stocks that are still well under the guota- tions prevailing in the last great era of low interest rates and broad public speculation in securities. From th standpoint the opportunity for fur- |ther expansion in market values would seem to be rather limited. Four Swings in Prices. Tn the past four months there have bheen four pronounced swings in prices. A slump in August was followed by a rally late in that month and in September. Liquidation in October produced the largest decline of the vear, but by mid-November two-thirds of the average of this decline had been regained. Meanwhile, what has happened in the realm of business, of banking and of politics to correspond with these violent fluctuations? Stock values are based on several elements. First of all is the element of earnings on capital. Next, the proportion of these earnings paid to the stockholders and the proportion that goes into reserve or may be applied to additions or betterments from which great earning power is created. This will establish a book value and indicate equities on which a third form of appraisal of value may be based. There are also to be taken into account in estimating the ir price of a stock the general condi- tion of business, the state of national politics, world-wide affairs and pos- ties of consolidations or other means to effect greater economies and promote efficiency. Industrial Profits Decline. Since the first definite turn in the market this year developed in August, there has been a steady contraction in industrial activity and in industrial profits, but latterly an expansion in the purchasing power of the agricul- tural States which should very soon be translated into more orders for manufacturing concerns. If one were to take six representative stocks from the industrial and railroad groups and measure their present worth on the basis above outlined, nearly all would compare unfavorably with their worth last August. There was less available net profit in the September quarter | from which stockholders might expect to share than in the June quarter, and there will be an even smaller balance in a large number of corporation state- ments in the December quarter than that of September. In spite of these ‘ts, stocks have been advertised in the past three months by their advances than by their declines. There are only two ways to explain this contradictory condition. One is universal employment today of | money in the markets for investment and speculative securities inasmuch as the accumulation of funds outruns the normal commercial requirements, with banking institutions steadily ex- panding their holdings of securities until these agsregate $6,100,000,000. The other leavening process is politi- lcal in its character. It expresses the | policy and program of the leaders | of the Republican party who are con- | cernea primarily with' national pros- perity in the next 12 months and propose to nurse along this prosperity and emphasize iy constantly. Wirst 1d_foremost the Coolidge adminis- tration has been identified with the material well being of the country imd as the chief apostle of prosperity. Mr. Coolidge may find it difficult to resist the approaches of a party that must expect to receive its strongest <upport from those who have not benefited from its program since 1924, Wall Street has never been willing to admit_that Mr. Coolidge | would not run. No small part of the recent recovery in stocks, when trade symptoms have been satisfactory, is due to its conviction that he would be a drafted candidate next June. Politics Putting on Brakes, Were the political outl up there would he a decided impetus lin business and especially in quarters that have felt the restraint of both producers and customers since the August statement from the Summer | White House. The effort on ever hand now is to stabilize industries that have been demoralized, for in- stance, sug: oil, iron and steel and textiles. Encouragement to go further along these lines would be given were the political policles of the countr for the next four or five years more clearly defined. as the relations with Europe, in a competitive sense, also enter into the situation most intimate- ly. Undoubtedly the great slump that has occurred in the building industry, especially in Industrial centers, re- flects the timidity of those who have been carrying onextensive develop- ment programs and now are pausing to xee whether production is to ex- pand, emplovment to be maintained. rents to hold up and amicable rela- tions hetween capital and labor to continue. With the country floodgd with cheap money, the strong movément in thé foreign exchanses is of only academic interest. We have played the part we should have played in granting loans and bank credits to the rest of the world in the past five years. It now hecomes a question whether our duty has not been completed and only those tes. trial 106, me by v Prices High. traveled along the nd many of them There is no record 1 lin )k 1o clear |1 | stock Baltimore Markets November 19 (Spe- grain quotations: red Winter export. red Winter, garlicky, do- mestic, 1.36%; corn No. 2 domestic. 1.02: cob ¢éorn, 4.90a5.00 barrel: oats No. 2 white spot No. 3 white spot, 581:a59; 00a1.00. g While turkeys will be a principal attraction for the Thanksgiving holi- day next week, other lines of lm(_h live and dressed stock will also be in good demand, owing to the high prices prevailing for turkeys and fa Iy liberal shipments of large fat stock re advisable from nearby points, but in shipping, dressed poultry should be iced or shipped in refriger cars. hipments istended for the Thanka- giving heliday should be timed to ing BALTIMOT clal. — Clo Wheat, No. 1.367; No 2 reach here not later than Monday for | dressed stock. market rules on turkeys, of 2 cents a live and Tuesday for The general live poultr: steady to firm, which show an advance pound over last week's prices. T ceipts of chickens have bheen liberal the past week and the market shows a slight decline today. but is expected to advance next week, when a good market is looked for both Monday and Tuesday. Large young Turke: 8 pounds and over, are bringing 23 to 25 cents a pound, but old stock will not bring over 35 to 40, while poor and crooked breasts are slow at 23 to 0. There has been too many small, pbor, rough looking springers in the shipments this week and the market sure did decline, closing to- day at 25 to 26 from medium to large and and 24 for Leghorns, while poor and thin fowl is slow sale at 18 to 20. Fat Hens Demand Fair. pld hens continue in falr demand at 22 to 26 but stock weighing less than 313 pounds as well as Leg- horns moves slow at 17 and 18, wh old roosters are draggy at 14 to 17 Ducks and geese in good demand Inrger shipments of these lines : able for the holiday with turkeys higher. The market closed steady today at 23 to 25 for young ducks 4 pounds and over, but lighter stock is neglected at and 18, while geese bring 24 and Z5. Guinea fowl and pigeons hold firm at 40 to 90 each for the former and 20 to 30 a pair for the latter. Owing to the warm weather prevailing this week, the dressed poul- try market has ruled generally easy with prices mostly in buyvers favor at the following quotations: Good to fancy turkeys, 41 to 45 cents a pound; old toms, 38 to 40, and poor and crooked breasts, 25 to 30; choice, young chickens bring 26 to 28, and old and mixed 25 to while old roosters are neglected at 16 to 18 choice to fancy dressed ducks and geese bringing 23 fo 28. Demand for rabbits continues good but most of the stock is arriving in poor condition and many of them being spoiled in fransit and unusable. Choice rabbits are bringing 3.50 to 4.00 a dozen and 2.50 to 3.00 for fair to ®ood, but poor and sticky stock is slow sale at 1.00 to 2.00. Receipt of native and nearby eggs have been fairly liberal this week, but the demand continues good for fresh laid stock and,the market closed today at 48 cents g’ dozen for firsts in free cases and 45 cents a dozen for current receipts in free cases. Won't Grade First. Most of the arrivals will not grade first and have to he sold as current receipts, while the trade generally will pay a premium of from 3 to 5 cents a dozen on strictly fresh laid stock. Eggs must be carefully graded and show quality to bring this premium. Demand for native and nearby garden truck has eased off this week owing to increasing receipts of Southern vegetables and the market rules easy at_the following quotatio White potatoes to 1.75 per 100 pounds and 1. 00 a barrel: sweet. potatoe a barrel: yams, 2,00 to 2 a barrel; beets and carrots, 3.00 to 4.00; cabbage, 2.00 to 4.00: Eastern Shore caulifiower, 1.00 to 2.00 crate: kale, to 30 bushel lettuce, 1.00 to 2.00 a hamper: onio 1.00 to 1.75 per 100 pounds: oyster plants. 6.00 to 7.00 100: parsnips, 40 to 30 basket: pumpkins, 10.00 to 20.00 per 100: Savoy cabbage. 25 to 30 bushel; spinach to 60 bushel, and turnips, 25 to 35 basket. Cattle Generally Easy. The live cattle market rules gen- erally easy at this time of the year with demand centered principally on poultry and little change in prices is looked for until after the Thanksgi ing. Top grade cattle, however, especially hand weight veal calves, meets with ready sale, but all under- grade stock is slow sale at inside prices. Quotations today at Light Street Whart: Ny Beef cattle, first qnality, pound, 10 | to 12; common to medium, 6 to 9; bulls, as to quality, 5 to 713: cows, choice to fancy, 6 to 7, common to fair, 3 to 5: oxen as to quality, 5 to 7 milk cows, choi per head, 50.00 to 75.00: common to fair, 30.00 to 00; calve: veal, choice, pound, 1415 to ; large, fat, 12 to 14; large, rough. 8 to 10; rough and com: mon. 7 to 8; sheep, choice, 5 to 6: old bucks, 4 to 5 lambs. Spring. choice, 13; fair to good, 10 to 12; com- mon, thin, 7 to 8: hogs, straight, 913 to 10; sows, f to 8; stags, 4 to 5; pigs, 13 to 15: shoats, 10 to 12, Policeman's Leg Broken. Policeman R. H. Kaylor of the Bureau, while driving his e south on Seventh street collided at N street with proceeding east. He was thrown to the ground and his right leg broken. He was rushed to Emer- gency Hospital, where he received treatment. SILVER PRODUCTION. NEW YORK. November 19 (#).— The United States produced 4.930.000 Fo% 4Ua! fine ounces of silver in October, against 4,691,000 ounces in September. Canada produced 1,696,000 ounce against 2.023.000 in Sentember and Peru's output was 1,637,000 ounces, against 1.456,000 in September. the American Bureau of Metal Statistics reports. GASOLINE CHEAPER. NEW YORK, November 19 A further weakening in prices oceurred last week, Paint and Drug Reporter states. Gaso- line prices charged motorists at ser; ice stations in ten principal market- ing territories of the Untied States | veraged 17.94 cents a gallon, against | §.04 cents the preceding week and | 7 cents last year. | . ATCHISON TRAFFIC DOWN. NEW YORK. November 19 (#).— Freight traffic on the Atchinson, To- peka & Santa Fe in the week ended November 18, declined to 38,814 car- loads from 45,234 a year ago. S A FORD PLANT COMPLETED. NEW YORK, November 13 (#).— The Ford Motor Co. has completed an assembly plant at Mon*évideo, Uru. guay, with daily capacity of 30 cars and_trucks. 1t will employ 120 me loans that are of a most legitimate character should be made. Certainly until the German situation clears it not advisable that additional German municipal or State loans be sold in this market. It will not hurt the country to lose some of its gold, though this might very quickly lead to a stiffening in money rates, should the movement to Europe gather headway. It is quite possible that a dangerous inflation in security prices may eventually be cor- rected through the adjustment of the STERLING AT NEW HIGH SINGE 114 Motors Center of Rising Mar- ket—Upward Movement Is Broad. By the Ass: NEW 19.—Re- sumption of upward movement | St prices in today's stock market was | accompanied by the establishment of a new high since 1914 by sterling ex- “hange. Bullish operations in stocks, influenced largely, by the continued of money rates and the turn better in of the basic lifted than a score issues to new high levels for the vear, or longer. the net gains ing from 1 to 6 points. nnusually heavy for session. Motors were again the center of speculative Interest. General Motors moved within a range of less than 1 point, closing 3 of a point net higher 13214 on a total turnover of about 000 ‘shares, Hupp opened with a block of 10, ares at 281; set a new and then fell back to nall fractional loss on ckard established a new high closing ag the top. Plerce eferred fell back more than 2 points, but most of the other motors improved fractionally. Motometer, with a gain of more than 2 points, |featured the accessory grou Midland Steel Products I'p. Midland Steel Products preferred continued it sensational gain by soar- ing 7 points to a new record high at 207, or nearly double the year's low of 106. United States Cast Iron Pipe, one of the favorite speculative ve: hicles of William C. Durant, advanced another 2 points to United States Steel common closed three- fourthe higher at 144la. Wall street is eagerly waiting to find out the ef- fects on demand of the recent in- crease in steel prices. Pools again were actively at work among the specialties. The list of new 1927 highs included Anaconda Copper, Associated Dry Goods, Arnold Constable, Beechnut Packing, Brook- lyn Edison, Cigar, Congo- leum, Freeport , International Paper, Intercontinental Rubber, Mont- gomery Ward, National Biscuit, Radio Corporation, Sears-Roebuck and Shu- bert Theaters. Continental point iated Press. YORK, the November ease for the industries, some more Trading was a half-holiday Insurance dropped 3 and about a score others showed recessions of a point or more. Although the railroad average {showed a small gain on the day, sub- stantial recessions took place in Lack- awanna, Pittsburgh & West Virginia preferred and Norfolk & Western, although the last named attained a new peak at 199 in the early trading, closing at 196. Rutland preferred jumped nearly 6 points in reflection of a downward revision of earlier es- timates of New England flood damage. Raw Sugar Drops. Except for a drop of 1-16 of a cent 2 pound in raw sugar, there were no changes of importance in the com- modity markets. The weekly clearing house state- ment showed excess reserve of $10.- 621,630, an increase of $5.266,140 above that of a week ago. Aggregate reserve totaled $664,802,000. The de- tailed statement of actual conditions this day showed mixed changes. Loans, discounts and investments in- creased $80,720,000: reserve in the Federal Reserve Bank of member ban $20,895,000, and net demand deposits, $120,477.000. Cash in own vaults dropped $2,356,000 and time de- posits, $9.000, Demand sterling touched a new top at 4.87 25-32. Japanese yen rallied about 1 of a cent to around 46 cents, but most of the other leading rates | showed slight recessions. TEACHING OF HISTORY PROBLEM IN LONDON| Inferior Text Books and Poor In- struction Charged, as in Chicago. Correspondence of the Associated Pr LONDON.—Chicago isn't the only place where there's trouble over teach- ing English history. In London a big row is raging. A bombshell dropped on the Board ot Education by an investigation which indicates many history teachers know little history themselves and haven't the slightest idea of how to teach what little they know. History text books in London schools are inferior. Only 2 schools of 41 have adequate | history libraries. | | No school possesses a historical | | atlas. | Maps are used but little, even in the | | best schools. | Only 85 children of 1.305 could as- | sign with accuracy three names to each of four consecutive centuries in | British history In the higher classes 28 per cent of the children couldn’t write a reason- ably accurate account of any two per- sons or events chosen by themselves. Children themselves bear out the poor quality of instruction, the report Here are some typical | answers: Becket was a very good fighter. (This answer was held to show a lack of knowledge of both history and fight- ing.) King John was forced to sign the Magnet Charter. The Normans lived in Germany. Previously they lived with the Danes. rang i 43 COTTON DECLINES IN SHORT SESSION Market Closes Barely Steady at Losses of Six %o Eleven Points. 7 the Associated Press. XEW YORK, November 19.—The cotton market was quiet again today. Prices moved within a range of 15 or 16 points. After selling up from January broke to 19.40, ng at that figure, the general et closing barely steady, at net declines of 6 to 11 points. The market opened steady at a de- cline of 3 to 6 points in response to relatively easy Liverpool cables. Com- paratively light offerings were readily absorbed by week end covering and de buying, and prices steadied up several points in early trading. December advanced to 19.47, and March to 19.75, but demand then tapered off and the market later eased under a renewal of liquidation. There was also some Southern selling here shortly before the close. December declined to 19.33 and March to 19.60. The close was within a point or two of the lowest The bulk of the business was at- tributed to further liquidation of De- cember contracts, and evening up of other accounts for over the week end and the ginning report expected at the opening on Monday morning. The December liquidation was largely in the way of continued switching from near to late months. Leading spot interests were credit- ed with buying at about 28 points un- der March, as they have been doing for the past few days. This took care of the near month offerings, but after the early demand from shorts had heen supplied, there was comparative- ly littla demand for other positions and the late market yielded under small offerings. Local traders were talking of a probable ginning of around or slight- Iy over 11,000,000 bales prior to No- vember 14, but there appeared to be enough uncertainty as to the showing of Monday’s report and its possible ef- fects on crop estimates to hold general business in check. Private cables said there had been hedge selling and liquidation in Liver- pool on the expectation of large gin- ning returns from the American crop and reports of an easier market for Egyptian cotton in. Alexandria. The amount of cotton on shipboard awaiting clearance at the end of the week was estimated at 122,000 bales, against 192,000 last year. O e T CAMBRIDGE AIR RACES WITH OXFORD POSSIBLE Undergraduates of Latter School Have More Than 75 Pilots in Student Body. Correspondence of the Assoclated Press. OXFORD, England.—Oxford under- graduats are taking to aviation and there are more than 75 certified pilots in the student body. As a result of their activity in the university, the government has as- signed four airplanes to the Oxford air squadron. Seventy-five more undergraduates are now receiving air training in these machines. The preliminary ground training is carried on within Oxford, where stu- dents have access to five airplane en. gines and a full outlay of airplane parts. The students then go to a royal air force station nearby for their flying experience. To stimulate flying university au- thorities are permitting aviation dur- m% school time. t is considered possible here that airplane races between Oxford and Cambridge may some day be acknowl- edged sports, as popular as boat rac- ing, cricket, rugger and soccer. TINIEST PHOTO SHCWN. Speck Invisible to Naked Eye Placed on Exhibition. LONDON.—The smallest photograph in the world, so tiny as to be invis- ible to the naked eye, is on ‘“exhibi- tion” at the Royal Photographic So- ciety here. In the center of a-little piece of glass is a minute circle; in the middle of the circle is an infinitesimal speck, which is hidden to the naked eye. Under a microscope, however, one sees a photo of Niepce, one of the in- ventors of photography, taken by Prof. Goldberg. King John was fond of putting a ;\!an in prison and forgetting all about | him, | “CHIC” HOMES HAVE BARS | Former Institution | American Adopted by France. | Correspondence of the Associated Press. PARIS. Bar” and “bartender” | have turned French. The bar is accepted now as a sort of “high-life” (pronounced igg-liff) ad junct, and small private ones are reg- ularly being installed in pretentious homes. The bartender, however, has changed his name. He is a “barman” here. The “Bar Americain came here after the war and is inscribed on the windows of thousands of cafes, hotels and restaurants in France. It is not always a real, mahogany bar; usually there is nothing but the sizn and a disposition to sell mixed drinks, so far as the mixing ability of the waiters permit. The private home bar is considered quite “chic” in modern, frivolous so- ciety, and photographs of new installa- tions Are shown quite frequently in magazines and newspapers. i Her Logic. From the Boston Transcript. Mrs. A. (at resort).—Doesn't it worry you to write to your husband for more money’ money market to a withdrawal of gold as well as of credits now held here on such a large scale for the account of Epmlz? banks. . § Mrs. B.—Not at all. If he's having a £ood time he owes it to me, and if ho 't having & good time he has saved | » Ships sail from New York twice every | week in the year to THE GOLDEN CARIBBEAN On ises ting 22 or 24 days a:ea:;;‘l:' to route selected at a cost of $315 and up. Havana, Santiago, Cuba; Port Antonio and Kingston, Jamaica; Cristobal, Panama Canal, Pan- ama City; Port Limon, Costa Rica; Puerto Barrios, Guat. mala City, Guatemaia; Carta= na, Puerto Colombia, Sar fi-rl , Colombia; Tela, Hon- duras can all be visited. All shore trips included you pay for ticket, good in price beds, all outside rooms, service that makes ‘‘every passenger a guest. Write for booklcts Passenger Department United Fruit Company 17 Battery Place, New York. N. Y. =