Evening Star Newspaper, April 7, 1929, Page 39

FINANCIAL. ' {ONEDF STk |[ BOND SUMMARY - TRADING DECLINES Effect of High Money Rates on Business Causing Concern. BY CHARLES F. SPEARE. Bpecial Dispatch to The Star. NEW YORK, April 6.—What matters most now in the financial situation is the future effect of prolonged high money rates on business. It is the fear of a trade recession, involving not only domesti¢ but foreign demand for manu- ! 101 factured goods, that intensifies the struggle. between the Federal Reserve and Wall Street and easts over the whole controversy the shadow of politi- cal interference. A banker returning this week from a month’s absencé in Europe confessed finding a’ distinct change in our in- dustrial outlook during his stay abroad. Concretely, he found new building eon- struction slowing down, due to the dif- ficulty in floating real estate bonds and to the exorbitant rates at which mort- gage money is loaning. From the auto- mobile trade he heard reports of an ex- cessive production, particularly in low- priced cars, which has overbalanced current demand, with the added feature of cancellations due to the recent un- settlement in stocks and the losses sus- tained by a part of the public. This suggests more than seasonal dullness in the industry later in the year. The effect of a recession in these two major lines of business is likely to mean less demand for iron and steel. The rapid rise in coppér metal has had a tendency to restrict developments in some lines depending primarily on this basic commodity. There is more hesita- tion in buying for future delivery. Foreign Trade Affected. ‘The fact that so much Xorelfn capi- tal is being loaned here in the call money market restricts business abroad and reduces the purchasing power of some of our best foreign customers. In addition to these specific signs of trade Teaction, there is the fear of further disturbance in the stock market, to which business always responds in greater or less degree, and the unknown factor of Federal Reserve policy in bringing about the desired reduction in speculative commitments. If we take, however, the actual re- sults of business during the first quarter of 1929, we find in them abundant cause for the optimism that has pre- vailed and on which so large a part of the rise in securities is based. This week there have been additional divi- dend increases among the copper com- panies. Ten.or a dozen of the largest manufacturers of automobiles have re- ported their shipments for the first three months of the year and some have exhibited their preliminary earn- ings statement for this period. “All in- dicate growth and large profits for shareholders. Pig iron production last month aver- aged well up to previous high records for the period, with iron and steel mills running close to capacity. Numerous manufacturing and distributing cor- porations have their dividends. The chain stores and national distribu- tors show a high percentage of in- creased sales over a year ago, when they were contrasting with the slack- ness that characterized many lines of trade, the sctual gain in the March quarter being nearly 15 per cent. Car loadings have been satisfactory, with an estimated movement for the second quarter of the year probably 71; per tl:;gg -over the corresponding period in Commeodity List Lower. There is an absence of inflation in the general run of commodities. The Wwholesale commodity price list foday is lower than at any {ime in over a year in spite of the fact that metals have had such a sensational advance. This is due very largely to the decline in numerous farm products and to con- spicuous weakness in a few other com- medities, sugar being outstanding. The decline this week has carried raw sugar to the lowest price since 1902 and is giving serious concern to the bond- holders of a large group of Cuba sugar- producing companies. The average rate for call money this ‘week has ben above 914 per cent, which follows a cost, to the borrowers on mar- gined stocks d March of from 10 to 11 per cent. Time money is 9 per cent, or higher for some e ties than it was even in the critical period of 1920 when the Federal Re- serve rediscount rate was advanced to 7 per cent. Commercial paper is firm at 6 per cent. While legitimate busi- ness can obtain all of the credit it needs, the rub is not in the amount available, but in the rate demanded by the lender. When this carries through to the borrower it obviously restricts a great deal of development that may be postponed six months” or a year, or until the cost of captial is low enough to justify the corporation or the mu- ‘nicipality in entering upon an expan- sion or improvement program. ‘There are increasing signs that high rates for money are checking progress in parts of the South and in the grain growing sections of the West. This will show up later in the 'year, in crop statistics and merchandise in farming communities. Trading Volume Shrinks. ‘This mixed set of conditions in busi- ness and in creadit has caused & sharp decline in the volume of trading in securities, as a portion of the public has retired from the market and the professional operators have found it wiser . to reduce thelr commitments while a cure for the money situation is being sought by the Federal Reserve. ‘The ave! of stock prices at the end of the week is not much different from that when the market closed for the A limited number of out, but not much advan- tion on either the side, . It will be & Jloping - another vigorous speculatio) :u.clru‘lnmyld the December and Feb-. breaks. 4 ru;rh_ve two weak featurs in the Federal Reserve situation “I:efl f,n:‘ lack of har- 'UNITED' STATES GOVERNMENT. - 1929 Righ. Low. 9931 974 Lio3%1832-47...... 100.1 98.9 Lib 1st 4% 47 10012 9%.17 Lib 4th 435 1933 98.18. 95,4 * USI%s 1940-43. 98.20 95.12 US 3%s 194347 10817 9818 US 3% 1946- 99, 106.18 100.8 U S 48 1944-54 111.26 105.0 US4%s 1947-52 FOREIGN. . Argentine 5 June's9. ... Argentine 6s A '57 1 Australia 5856 ... ., Austria 7s '43. Bank of Chil Belgium 6s °56 Belgium 7%8* Belgium 83’41 Bolivia 7sct '6 4 Bordeaux 6s i Brazil 6%s 19 Brazil 83 41.. Canada 5s "5 Canada 5%8°29.... Chinese Govt Ry § Copenhagen 58 '52 Czechoslovakia 8s '51. Denmark 6s "42 964 109 105% 100% 44% 97 11 Fiat 7s "46 war. Finland 7s '50. 4 French 7s ‘49 French 7%= '41. 4 German 7s'49. Greek 6s 1968. Irish Free State 55 ‘60 ¢ Italy 78'51... % Japanese 6148 '54. . 101 Kreuger&Toll 58 ct wi ‘59 Mexico 45 1904-54. Milan 6158 °52.... Netherlands 6s '72. 4 New South Wale Norway 5%s Orient Dev 5 . Paris-Lyons-Med 6s Peru 6s’ Peru 7 Pirelli C % Poland 8s'50 Queensland 6s 47, 4 Queensland 7s " 4 Rhinelbe 7s. . ¢ Rhine Westphalia 6s'52.. Rio de Janeiro 88 '46. ... Rio Grande Do Sul 65 '68. . Rome 6158 '52.... . Sao Paulo State of 83°36. Seine Dept of 78. . Serbs, Croats&Sla Serbs Croats Slov Sweden 65 ‘39, Swiss 5148 '46 .. Toho Elec Pwr 7855 TUtd Kingdom 51837, Uruguay 6s 1960, . Warsaw 78 1 Yokohama 8s MISCELLANEOUS. 4 Abram & Straus 53%s'43.. 111 . 102% Alleghany Co cv §8 '44 Am Agri Chem 7% Am Beet Sugar 6s°'35..... Am International 5148 ‘49 A Sugar Ref 6537 Am Tel & Tel cl tr 4s Am Tel & Tel s £ 5 Am Writ Pap 6547, Anaconda Cop 6s Anaconda ev d ‘Armour & Co 415839 Armour of Del 5% 43 Atlantic Ref deb 5537 Bell Tel (Pa) ref 5548 4 Beth Steel p m 55 '36 Beth Steel s f 65 '48 Certain-teed 5%s 1 4 Chile Copper 58 47 Colon Ol 65" Comm Invest 5 Comm Invest deb 68" Con Coal (Md). 18t ret Cuba Cane Sug cv deb Detroit Edison ref Dodge 65'40.......... Fast Cuba Sug 7%8'37... General Cable 5148 1947.. Gen Motors 8837.. . ..., Goodrich (BF) 6%8 1. ... 4 Humble Oil & 2 4 Indiana Steel bi Inter Cement 5s 48, . Inter Match 554 Inter Mer Marine Inter Paper 58 A '47...... Inter Tel&T cv 414839, .4 Kendall 53; "48 (war). ... Kelly-Springfield 85’31 . 1 Lackawanna Steel 55 % Laclede Gas 5% Liggett & Myers Loew’s Inc 6541 wi North Amer Ed 53 '57.... Northern States Power 58 Pacific Gas & Elec 5s'42. . Pacific Tel & Tel 65’52 Pan-American 6s ‘34, Paramt-Fam-Lasky 6s '47 Philadelphia Co 58 '67. Philips Petrolm 54 s Postal Tel & Cable Publie Service 4% s 48 Sinelair Oil 6830, Sinclair 011 78 "37. 4 Sinclair Crude Oil 5%s. Stand Oil N J 5s... Stand OII N Y 4% Transcon Oil 6% '38 United Drug 5553 U S Rubber 15t & r 2! 102% 100% U S Rubber 7%s '30. High, Low. 97.30 97.6 9910 9822 99.6 96,11 9830 99.11 6 96.8 6.2 30 . : 2,28 100.8 102.26 +.16 .106.30 106.8 106.30 1}” 88 10415 Am Sm & Ref 1st 55°47... 101 1 1929 © o Net. Close. Chee. 97.80 +.18 +.194 +. 16 96.16 +.{5 99.30 +.8 98 91n UK 93 80/4 Wal 20 oo, | 19 93 3 9%, 102% 102 100 B & O re 1044 102 110 107% 94 108% 86% 98% 1% 8% 99% 92 ~ 90 . Atizntie P4+l +4t] |+ 86 Nk AL ]+ kA Chi & W Chi & W Den& R Erie 18t Erie gen Erie ref Erie con Inter Ra; Mil El R, Ni +1 4+ BEFEFESESR 22 sEtli4+1 ) e 9B% 96 4 100% 102% + 95% 96% 98 981 9% 94% 89% 91 Wabash ‘Wabash 4 100% 100% 100% 61, and 615 per cent. bass. ' Munici- /'uu all ‘over the country are mak- g short term commitments, in lieu of parmanent borrowing, on a 6 per cent basis. Even this earning power fails to attract institutions and private investors who can obtain'9 per cent on 90-day money and who see very little decline in the average rate for' call money and greater 1] ever after August 15, ;hll':;ckt:er! is_pronounced S their earning power over a period of from three to five years. RS BOND PRICES MIXED. Strain Brings Out Further Selling. NEW_ YORK, April 6 (®)- issues were hea! oy , mean- liquidation that have already discounted | Man 3 Wholesale Market Yesterday's market fruits and vegetables (com by Market News Service Bureau of Agri- large | mostly around 3.00; some qualif ;| Tow a5 2.0, PR | Ol Beie few, 3.00; ce—Supplies light: demand light, s piia ana 191, g% g 93% 90 AthT&SF 108% AtehTo & San ' 4% O gold 4548 96% B& Ocviys'ss ‘99% B.&Oref 5 Chicago Rys 6s '27. Chi R1& Pacref 4s'34. ChiR1&Pac4kswi Chi Union Station 4 Chl Union Station 6%s. CCC&StLS: C/CC & St L ref 6i Cleve Terminal § Colo & Sou ref 415 '3 Cuba R R 58 52 Cuba North §%: Del & Hudson 5%s " Den & Rio Grande cn 4s Detroft United 4%s '3: Florida Bast Coast 58 '74. Grand Trunk s f deb 6; 1 Grand Trunk 78 *4 Great North 4% Great North gen 51852, Great North gen 7 : Havana Elet Ry 51 Hudson & Man adj 6§ 89 * Hud & Man ref 585 Illinois Central 4 Inter Rapid Tran Inter Rap Tr 58 sta Inter & Great Nor ad Inter Ry Cent Am Kan City South 4 Kan City South 58 Kan City Ter 1st 43 Lake Shore 4s'31. Louls & Nash uni 48 Minn & St L ref 48°49 MABtP&SSME%s'S & Tex prin Mo Pacific gen 4875, Mo Pacific 5s F". . Missourl Pacific 55 G u Bl 4 N Y Cent deb 4s '3 Y Cent ref imp 55 2013. 105 Y Cent deb 65 '35. NYChi&StLref5%sA 106 NYChi &St Lref§%sB. 105% NYNH&Hevd 121 Y State Ry 4%s N Y West & Bos Norfolk & W en on 101 ' 98% Ui .k,“;fhhlllth... P &L 5% 4T, (worth 8s 90 Walworth 101 100% 100% 100% ~ 99% 100% — % High. Low. Close. en 48’95, 91% 90% 9% + % 48 3% 111 118% +1'% 5% 9% 9l . % 90% 9% + % . 96% E 101 101% + % 1 101 +1 104 - 102% - % 108% < % CL 1 B&OS8 W Div s '50 4 Bangor & Aroos Boston & Maine § Broadwy & 7th Av bs 4 Brooklyn Manbat 1st 6s A .~ 95% 0. 98% % Canadlan Pacific deb 4 Central Pacific 45 '49 Chesapeake Corp 55 Ches & Qhio cv 4 %38 '3! Ches & Ohlo gen 4% Ches & Ohio 41§ ChiB&Q4% Chi B & Q ref 58 ‘71 Chi & East 111 gen 58 51 Chi Great West 48 4« ChiMStP &P 5s'7 95 . 95 . 101% 1024 + % 81 82 —-% 66% — % ‘90% 905 — % 3 3% —4 107% 107% S0 81 ern Ind con 4i sern Ind 5% 62, G West 5855 con 43 '96 lien 4s 5867 78730 =SeeE ¥ Frssrses U Al e o B 1 I MBS a = 78 e F&EF pid Tran cv 7 [BRER T S FRrzes y & Lt 1st ref Fefrsses + :I4++K+l = seFrees 108 LRSS 2 2 " & . 87% 2047...101% 2047.. 111 98% 85% StL & San Fran 58 B'50.. 100% St Louis S W con 48 '32... StP K CS§ Line 4 95% %s'41.. 91 4s 58% Seaboard A L con South Pacific cv 4 South Pacific col 4 South Pacific ref 48 Southern Ry gen 45 Southern Ry 1st §s " Southern Ry dev 6% Third Ave adj Union Pacific Union Pacific Virginia Ry 1st 3 Va Ry & Power 58’ 18t 53’39 ‘Wabash 5& B 19’ 5%8'75 % mpers, . 3.00; tulv” fancy Bountifuls 3.50a4. Mght, market stea crates, fancy, 3.00a8. ‘Peas—Suppl light; demand market steady; South Carolina, bushel hampers, large pod varieties, 2.75a3.50; i 355 i o : s Brazras" green, ' 2.50a3.00, and 5 o 9 +up- o 1 1004 108 1| 8B4 8T 105% 100 a2 7 2% 38 19% Telaurograph (1) 16% Tennessee Copper (1) 57% Texas Corp (3) 661 5b% Texas Corpn 1 . 8% Texas Corp fu pAId. 724 Texas Guit Suiur (4)- | 13% Texas Land Trust. 16% Thatcher Mfg. 35 Thatcher Mfg BY (3.60) *The Fair (2.40) The Fair pf (7) ‘Third Avenue. Thompson J R (3.60). .. Tidewater Asso Ofl..... Tidewater Asso pf (6).. Tidewater Oil ¢80c)..... Tidewater Oil pf (5). Thmken Roller B (3). Tobacco Products(1.40). Tobacco Products (A).. ‘Tobacco Prod ctfs A. ‘Tobacco Prod ctfs C. Transcontinental Ol Transue & Williams (1)." Trico Products (2% ‘Truax Traer Coal 1. ‘Truscon Steel (11.20)... 4 Twin City Rapld Tr (4). 46% Twin City Rapid Trans.. 99% Underwd-Elliott-F (4).. 115% Underwd-EIl-F pf (7)... ’3: 81% 18% 2% 16% 51% 45% 24 ) Union Ol of Cal (2)...... Union Pacific (10). 2 United Biscu United Cig: . United Cig Stores pf (¢)./10] United Dyewood. ... ... United Dyewood pf (7).. United Elec Coal (3).... United Frult (c4). .. United Paperboard. ..... U 8 Cast Iron Pipe (2).. USCIrP st pf (1.20).. ¢ USCIrP2dpt(1.20). .. U 8 Distributing. ....... U 8 Distributing pf (7) 1 7 158% 1334 26% % 1 124% 20 404 98 81 4 77 57% 58 2% 193% 157% 144% 141 109%, 88% 141 136 3 848 16% 35 8% 3% 7 60 82 U 8 Ind Aleohol pf U 8 Leather... U S Rubber......... U 8 Rubber 18t pf. U S'Smelt Ref&M(3%). . U'S Smelt REMPL(3%) . U S Steel (7).... U S Steel pt (7). U 8 Tobaceo (3). U 8 Tobacco pf (7) .. 140 Univ Pictures ist pf (3). Univ Pipe & Rad . Uil Pow & Lt A (62).... 4‘0‘9." 8 27 Van Raalte.... Van Raalte pf. Viek Chemical (4). 143 - Victer ) 114% 110 Vietor 2 16% Virgini B0 - Va-Caro Vulean ‘Vulean Detin: 61 91% Wabash 81% Wabash B (5 ‘Waldorf Sys Al 141 = FEEP 96% West Penn K West Penn El = e = ¥ NEL FIALHIEI AL+ 0+ & waedy + 30% White Eagle 40% White Motor: 24 White Sewin, 47% White Sewin; 19% Wilcox Oil & 37 cxeET * it o FEE 1+ K1 17 Wilson & Co 59 Wilson & Co “Fr B 43 82 220 Wright Aero 70 5% Atlantic Refi 1% Goodrich Ru % Kreuger & T 49 3 Dividend rates payments based on U | 4% in stock. Plus 8 Paid last Jear—no in stock. ~d Payable { Plus 10% in stock. . | in stock. % 11/25 of a share in stock. & Pl MARKET RECOVERS AFTER EARLY DROP 5= Selling Wave Checkei! in m Later Déal_lngs—nails Lead in Upturn. By the Associated Press. NEW YORK, April 6.—A wave of made effective ments and State CURB ISSUES DECLINE. Market Sags Under Heavy Week End Liguidation, YORK, m 6 (#).—The Curb end liquida- Traders tion. last nea: uucb,ca' eflm $5,307,982. crease of $669.377. Pbr'th‘: firs! ter per cent over the corresponding 19: period. Granger & Co., has been elected chair- | man of the board of the Federal Match Corporation. to -cost about $1,000,000 has been :e‘hn:'by the General Electric Co. They system in New England. 55%; Mexican dollars, 43, WALL STREET BRIEFS NEW YORK, further id this week as irregu~ the stock market. erings declined to $19,- | April 6 (@) —New | stocks dropped $1,600,000,000. Total meltings_of 14 United States! refiners from January 1 to March salss of the 8. H 14.4 per cent over , an in- of this year Jeftrey S. Granger of the New York to:x yhchln(e firm of Sulzbacher, An order for 21 giant transformers re- used on a 220,000-volt electric SILVER QUOTATIONS. NEW YORK, ‘April 6 (7).—Bar silver, We Will Sell All or Any Part 10.000 Jefterson 6s 1939 @ 93. 199 Chathan APt %ig 0 0 %" 5 L IR AL A y. e vesi. Pra. -Cr 5 Secur . & Gua, tate. & In: s. n_Prd. ity Units, FOT 1 i dividend. 1king Ma (4). Meh pr pf(7). 1 Chy . Chem 6% 89" Va-Caro Chem pf (7) Detinn Vulean Detin ‘Warner Bros pf (2.20) 32% Warner Quinlan (2),.... #6% ‘Warren Brothers (15)... 144 48% Warren Bros 1st pt (3).. 52 15% Warrenp Fay & 91% Webster-Eisenlohr. 106% West Penn Power pf(6). 1 Wegt, Penn Power pf(7). l::h 70 Wheeling & L Erie pf. 43 White Rock Min 8 (3). Wilcox & Rich (A) 2% 34 Wilcox & Rich (B)...... 24% Willys-Overland (e1,20). 96% Willys-Overland pf (7). 9 Wilson & Co.... 192% Woolworth F W (6).... Worthington Pump. Worthington Pump (A). 66 Worthington Pump (B). Wrigley W.Jr (13%) 61% Yale & Towne (4)... 35 Yellow Truck & Coach. 80 Yellow Tr & Coach pf... 52% Young Spr&Wire(12%). 105 Youngston Sheet & T (5) 130% RIGHTS—EXPIRE. % Am & For Pow, Apr1l.. 2 Am Steel Fdry, April 15. 26'% Anaconda Copr, June 18. 1% Glidden Oil, April 25.... % Missouri Pacific, May 1.. Motor Products, April 15 Sou Cal Edison, May 21.. % Warner Quinlan, Apr23. 1 siven in the above table are the anpusl cash atest aUnit of trading less 4 A% Fi when earned. e us 6% in stock. k Plus 1'% a share in stock. n L ke Low Interest and Commis.ien Rates.. Prompt Servige THOS. E. JARRELL CO. ' Realtors 721 10th St. NW. Main 766 L = ) » = sEsesss TEORI it 44 004000000+ " tUEUREs wFertt®REE in P (7). =asu§ ning (A) . m ( %) Pipe. Salaried People “Character Plus Earning - Abilisy Our Basis of Credii - EROVIVMENTS | WASHINGTON WIMSETT COMPANY 903 N. ¥. Ave., 2nd Floor. lec pt (6) lec pt (7) + Pl++++1 1+ EFEFESER LT T (RN was $F ¥ @) 8 (1). SR ¥ | o LEHMAN’S TIRE SHOP 12th & K N.W. g Machine & M pf (4).. Ga; . “Convenieatly Located on 14th Street® |.! 1529 14th St N.W. ' Dac. 3320 }: (A) of. 2)..... In Nearby Virginia 51/2% Insurance Co. Commonwealth Investment Co. 917 15th St N. Phone Main 3023 2 58% 1% 3 3% 7 1% 2% K 1% 50% 3% ng, Apr29.. bber, Apr 24 oll, April 13 The Commercial Natienal Bank Pays interest on DAILY BAL. ANCES. on Savings Accounts. Interest starts from DAY of deposit and is earned to DAY - of withdrawal. Come in and let us explain. Resources Over $19,000,000 14th & G Streets R. GOLDEN DONALDSON, President auarter] alt yoarls dociarat han 100 share tohs 1Partly_ extra. 1o [Plus 3/28 in_ st preferr X Money to Loan Srst deed of trust om real estate. First Mortgagé and 2 Constru_c’tio_n Loa.n "Applications Invited at 5% Glover & Flather 1508 H St. N.W. - Main 1758 anadysis . free. Write o T T I 268 | CLARK,CHILDS & COMPANY | e 120 Broadway h. X New York, N. Y. WASHINGTON OFFICE 1508 H STREET NORTHWEST NEW YORK STOCK EXCHANGE NEW YORK COTTON EXCHANGE NEW YORK COFFER EXCHANGE NEW ‘YORK CURS MARKET NEW YORE PRODUCE EXCHANGE BOSTON STOCK EXCHANGE CHICAGO BOARD OF TRADE Telephone Metropolitan . 320 JAMES SLOAN, Jr, Manager F1 RAs’ »o R TGA.GS SECURED.BY . - AMPLE VALUE The money has: been' loaned on the improved .real’ estate back of our e » FIRST MORTGAGES —only after conservative ap- praisement — and, provides a .wide margin of security; while the interest doesn't vary . throughout the entire term of * the mortgage. ; + In amounts from $250 up. Over a Third of a