Evening Star Newspaper, May 26, 1929, Page 77

FINANCIAL THE SUNDAY STAR, WASHINGTON, D. C, MAY 26, 1 029—PART PICTURES GROWTH OF D. . EXCHANGE Parris Reviews Splendid Growth in 48 Years—Other Financial Notes. BY EDWARD C. STONE. Paid $25 for Seat | | | | | i Albon K. Parris, one of the found. | ers of Crane, Parris & Co., gave a most interesting talk on the history of the Washington Stock Exchange before the | Columbia Historical Society a few eve- nings ago. Mr. Parris has been an ex- change member the longest of anybody in the financial district, is & former | president and has devoted a great deal of time in assembling all the past rcc- ‘The oldest stock exchange in exisf ence is the Paris Bourse, he sai founded in 1726. The London Ex- change was founded 47 years later. ‘The Philadelphia Exchange was started in 1790 and the New York Ex-~hange got under way about two years Jater. All efforts to establish an exchange in ‘Washington failed until 1881. The or- ganization was limited to 20 members and started out with 19; the number being later extended to 40. The first seats on the exchange cost $25, while one recently sold for $4,025 and an- other for $4,500. Mr. Parris held one of the original $25 seats, bought by the firm h worked for when a very young man. ‘When he started out for himself, his employers told him to “keep the seat, | that it wasn't worth anything any- way.” In 1905 and 1906 three seats sold for $10,000 each, yet with such a splendid profit on a $25 seat that was given him, Mr. Parris refused to part :\'Xth his membersiip and still retains t Novel Mecthod in Deliveries. Mr. Parris recalled to his hearers that in the early days delivery of ail securi- ties had to be made with a horse and buggy. He often spent hours traveling around town in this manner to fulfill contracts during the daily sessions of the exchange. Gas stock was one of the most popular issues in the early days, as it sull 1s. George H. B. White, father of George ‘W. White, now president of the Ni tional Metropolitan Bank, was the first exchange president. Business on the exchange has varied greatly. William B. Hibbs, who served seven years as president, and Eugene E. ompson who, like Charles C. Glover, sr., served ve years, were conspicuously active in stimulating business during their terms, the historian asserted. The exchange has weathered all the nancial panics, business has been kept on an even keel and the organization has gained in prosperity and influence. ‘The exchange was one of the first to join the Assoclated Stock Exchange Association which is made up of a dozen exchanges outside of New York. ‘When the exchange was founded, ex- clusive of Government bonds, there was 28 securities listed. Today the nufh- ber has increased to 98. Steady prog- ress is shown in the volume of busi- ness transacted, which in 1927 amounted to $2,184,000 of bonds and 71,335 shares of stock, and in 1928 to $1,986,041 in bonds and 88,745 shares of stock. During the exchange's existence there have been 189 members and 24 presi- dents have presided over the pro- ceedings; George O. Walson now oc- cupying the chair. During his address Mr. Parris gave many personal side- lights and concluded by predicting steady and even increasing expansion in exchange business. Governing Board to Meet. A meeting of the board of governors of the Associated Stock Exchanges, & voluntary association composed of the ‘Baltimore, Cincinnati, Cleveland, Colum- bus, Detroit, Hartford, New Orleans, Philadelphia, Pittsburgh, St. Louis and Washington Stock Ilchlngs will be held at the Lord Baltimore Hotel, Balti- more, tomorrow. The routine work of the meeting will center on discussion of the reports of the following committees: Program for 1929 convention, membanmeg..wnys and means to stimulate interex ngs busi- ness, trading methods and publicity. Application of the Los Angeles Stock Excgmge for exchange membership and applications of member firms for asso- ciate membership will be acted upon. The officers of the association are: Fugene E. Thompson, Washington, president; Williaa M. Louderman, St. Louis, vice president, and Clark C. ‘Wickey, Detroit, secretary-treasurer. The assoclation has just released its 1929 directory which contains informa- tion on the officers and governors of the association, member exchanges, associate members, officers and gover- nors of member exchanges, members of member exchanges, securities listed on member exchanges, commission schedules of member zxchnn,es and the constitution and by-laws of the asso- clation. Satarday D. C. Market Steady. The Washington Stock Exchange witnessed quite active trading in the final session of the week, bonds getting their share of attention. Chesapeake & Potomac Telephone 58 came out at 993, $1,000 Washington Gas 53 sold at 99%, 99%% and 8935, Po- tomac Electric first 5s figured in a $2,000 transfer at 993, and $1,000 Cap- ital Traction 5s sold at 97';. Potomac Electric Power consolidated 5s figured in a $3,000 transaction at 1017 and the bond market closed with $500 Bar- ber & Ross 625 moving at 94%%. The first stock transfer was in Capi- tal Traction at 95. The stock closed at 94% on only a 19-share turnover. Federal-American National Bank stock moved at 335, Federal-American Co. preferred came out at 100 and Potomac Electric Power 5!3 per cent preferred registered two small sales at 10513, ex- dividend. Seventy-five shares of National Mort- gage & Investment preferred sold at 5 at and 70 shares of Real Estate Mort- gage & Guaranty Co. preferred at 7%4. There were but few changes during the week in the unlisted securities quota- tions, The asked price on Raleigh Hotel £tock was lowered from 90 to 85 and the asked price on Woodridge-Langley Savings Bank stock was placed at 40, with 20 bid. D. C. Bankers' Convention Notes. Interest is developing at a lively pace in the District Bankers' convention at Montauk Beach on June 20, 21, 22 and 23. The reservations’ committee chairman reported a marked increase in applications, the prcgram commit: tee has practically completed arrange- ments for the business sessions, the sports, entertainment and other com- mittees are ready for the gong. There (2 will not be an idle moment from ar- rival on Thursday morning until the train leaves on Sunday night fcr the return trip. There are more cups to be played for this year than ever. The conven- tion comes late enough so that ocean bathing is expected to be added to the attractions. The Cark Fisher de- velopment has been pushed rapidly since last year, a total cf $8,500,000 of a $23,000,000 budget for 10 years hav- ing already been spent, according to latest reports. Power Output Gain. NEW YORK, May 25—American Water Works & Electric Co. reports power output of its electric subsidiaries for April, 1929. of 155.970,008 kilowatt hours, an_increase of 10 per cent over April, 1928, when power output was 141,430,440 kilowatt hours. For the four months ended April 30, 1329, total output- was 627,710,306 kilowatt hours, egainst 575,358,611 kilowatt hours in the same period of last year, an in- erease of 9 per cent. } ALBION K. PARRIS, | change history, pictured before the Co- tion’s growth, early struggles and splendid CAUSES OF NERGER ERA ARE STUDEED | Industrial Expert Finds Com- binations Are Result of Post-War Conditions. By the Associated Press. NEW YORK, May 25.—Speeding of | communications and transportation, {says the industrial economist. Dwight Farnham, is an important factor in stimulating the present tendency to- ward great industrial and financial mergers. scale consolidation era, submitted to the recent convention of the American Management Association, Mr. Fainham lists seven principal forces behind the movement: 1. The overbuilt condition of indus, try after the war. % 2. The development during thes war of mass production, which rcsulted in the general introduction of scientific methods in administration, finance, sales and production. 3. The increased cost of equipment required for mass production. i 4. Improvements in technical prac- lce. 5. New inventions resulting from re- search. 6. The high cost of distribution caused by attempts to dispose of the increased output resulting from na- tional advertising, high pressure sales methods, national distribution and di- rect contact with retailers. 7. Application of mass methods to purchasing and retail distribution through the medium of chain stores. ‘This movement was further assisted by the trend of population toward the cities, by the development and popu- larization of the automobile and by the growth of hard surfaced highways. Wholesale Market Yesterday's daily market report on fruits and vegetables, compiled by the Market News Service Bureau of Agri- cultural Economics, said: Cabbage—Supplies liberal; demand moderate, market dull; Norfolk section, Virginia, 11;-bushel hampers, pointed type, 75a90; few 1.00; east shore, Vir- ginia, barrel crates, pointed type, 1.75a 2.00; few low as 1.50; Norih Carolina, holdovers, fair quality and condition, crates, pointed type, 1.25. Lettuce—Supplies moderate; demand light, market dull; OCalifornia, crates, Iceberg type, 4-5 dozen, 4.00a4.50; fair quality and = condition, 3.00a3.50; 6 dozen, fair quality and condition, 2.00a 2.50; few 3.00. Onions—Supplies moderate; demand light, market steady; Texas, standard crates, yellow Bermudas, mixed No. 1 and No. 2, 1.85a1.90. Potatoes—Old stock; supplies moder- ate; demand moderate, market steady; Michigan, 150-pound sacks, Russet Rural, U. 8. No. 1, 2.25a2.35; new stock; supplies very light; demand moderate, market slightly stronger; South Caro- lina, cloth-top stave barrels, Cobblers, U. 8. No. 1, 6.50a6.75. Strawberries—Supplies moderate; de- mand moderate, market slightly weak- er; nearby Maryland, 32-quart crates, various varieties, 3.50a4.50; Delaware, 32-quart crates, various varieties, 3.50a .00. Tomatoes—Supplies moderate; de- mand light, market steady; Florida, sixes, ripss and turning, wrapped, fancy count, 3.00a3.50: few best, 4.00; choice count, 2.25a2.50; few best, 2.75a 3.00; some ordinary condition, all sizes, 1.00a2.50. ‘Watermelons — Supplies light; de- mand light, market stead: Florida, Tom Watsons, 34-36 pounds average, fine quality and condition, 1.00al.15; 28x30 pounds average, fair quality and condition, 60a75. String beans—Supplies liberal; de- mand light, market dull; North Caro- lina, bushel hampers, green. 1.50a2.00; South Carolina, bushel hampers, green, 1.00a1.25, Cucumbers—Supplies light; demand light, market slightly weaker; South Carolina, bushel hampers, fancy, 1.75a 2.25; 1 condition, low as 1.50. Squash—Supplies moderate; demand light, market steady; South Carolina, bushel hampers, white, 1.00a1.25; few, 1.50; yellows, supplies not cleaning up, fair’ condition, 75a1.25. Eggplant—Supplies light; demand slow, market steady; Florida pepper crates, fancy, 2.25a2.50; fair quality and condition, 1.75a2.00. Carrots—Supplies light; demand light, market steady; California, Western lettuce crates, 2.7523.00; few fancy, slight!y higher. aulifiower—Supplies light: demand flow, market dull; California, pony crates, 1.75a2.00; mostly 2.00. Peas—Supplies moderate; demand light, market slightly weaker; Norfolk section, Virginia, 5-peck hampers, mostly 2.25, few 2.50. Corn—Supplies moderate; light, market about steat bushel baskets, 2.50; cantal .75, Beets—Supplies moderate; demand | moderate, market dull; Norfolk section, Virginia; 60-bunch crates, 3.50a4.00. Oranges—Supplies moderate; demand light, market slightly weaker; California, boxes, No. 1, medium size. 3.25a3.50; emall size, 2.50a2.75. Grapepfruit—sSupplies light; demand demand | 2, medium size, 3.25a3.50. Infringement Claimed. “The Piercs Arrow Motor Car Co. has taken legal steps against the Arrow Alrcraft & Motors Corporation of Have- lock, Nebr., alleging the use of the w “Arrow” in their corporate title {5 an infringement of its trade mark and | +wade name rights. Buys Trust Certificates. 1.FW YORK, May 25 (#).—A bank- sindicate has purchased for public ring within the next few days an issue of $5,825,000 Southern Pacific Co.'s cquipment trust 42 per cent certificates, maturing June 1, 1930 to 1944, inclusive. | | lumbia Historical Society the organiza- | In an analysis of the present lergel light, market steady; Florida, boxes, No. |. 'TRADERS CONFUSED OVER STOCK TREND Market Drops Ten Points During Week—Recovers Third of Loss. | | | BY CHARLES F. SPEARE. Special Digpatch to The Star. | NEW YORK, May 25.—Roughl: ! stocks have regained since Wednesday | one-third of the 10-point average loss occurring in the first part of this week. Following the precedents of December 'and March there was prompt but tem- porary recovery from the pronounced liquidation which brought industrial shares down an average of 25 points be- ween May 10 ‘and May 22. The usual “secondary reaction” occurred Friday. | The market is being let down grad- | ually so that its reactions may not have | a disturbing effect on business. It still { i Authority on Washington Stock Ex-) has a reserve strergth that cannot be | | ignored. No recent week has produced such scnsational episodes bearing on invest- ment and speculative securities as those of the United States Supreme Court de- cision on_Monday in the St. Louis & O'Fallon Railway case, and the refusal of the Federal Reserve Board to grant the applications of the New York and Chicago banks for a higher rediscount rate and its rejection of a recommenda- tion by the Federal Reserve Advisory Council that the higher rate be made effective. Two Contrasting Views. most_constructive arguments protecting investment capital rendered in years; certain it is the most stimulating pro- nouncement that has come to the ears portation act was inaugurated in 1920 On the other hand, the Federal Reserve Board has been accused of creating an autocratic power in Washington to regulate money rates, whereas the in- tent of the framers of the act was to have a democratic administration of Federal Reserve policles. June to See Funds Scarce. . The spread between the 5 per cent Federal Reserve rate and open market rates increases. Sixty-day money is now nearly twice as high as Federal Reserve money. Acceptances are about 1 per cent above the official rate. Tempo- rarily, call money has been easy. It may be much higher in June and in July. No one denies that the effect of meeting payments on approximately $1,000,000,000 of new stock and bond issues next month, supplementing the normal demands of June 15 and July 1 financing and disbursements, will create a temporary scarcity of funds. The attitude of thosz who are privi- Jeged to exercise the various “rights” expiring next month has undergone some change since new capital issues were announced. The value of most of these “rights” has dropped off from one-quart-r to nearly one-half in con- trast with the rising tendency of such “extras” last year. It has been notice- able that stocks on which dividends have been increased have not responded favorably. Altogether there is a strong suggestion that the public has about all of the securities it wishes to carry, or else it feels that 1t can increase its { time. ‘This is clearly enough indicated in the motor group. which has made no response to figures of March and April production er to higher dividends, while reflecting the possibility of an earlier than seasonal elowing down in the motor industry this year. Market Values Shrink. ‘There can be no doubt that liquida- tion has been taking place in recent | weeks and that the accounts of large speculators have been materially re- duced. At one time Wednesday 25 per cent of all the stocks quoted on the exchange were at the lowest of the year. The in- dividual declines from the 1929 high, in shares that have been popular. ranged from 20 to 65 points. Expressed in another way, this meant a shrinkage in market valuations of from 10 to nearly 50 per cent. . ‘That the selling has not been confined to any one.group of industrial shares is indicated in such losses as 65 points in Chrysler, 55 in Anaconda Copper, 45 in Montgomery Ward, 40 in National Cash Register, 30 in American Tele- phone & Telegraph, 43 in Canadian Pacific, 33 in Simmons Co., 31 in Sears- Roebuck, 28 in Kennecott Copver, 27 in American Smelters, 26 in Cerro de Pasco, 24 in Radio. 75 in Johns Man- ville, 35 in Hupp Motors, 18 in Genersl Motors new, and 20 in United States Steel common new. There were even larger individual losses than these, such as 185 points in J. X. Case, which represented a 40 per cent decline, and over 200 points in Adams Express. A significant market incident, and one reflecting not | only the change of sentiment in recent months ‘but the overpromotion of stocks, was the reaction of from 20 to 40 per cent in the prices of half a dozen young industrials that were marketed with great eclat last Winter and to which the public rushed for a “free ride” but has since discovered that it actually paid a high fare for its specu- lative journey. Margins Deeply Cut. Obviously, these reactions must have cut deeply into margins, although margins have been higher than in any other bull market. Accounts that have been covered to the unusual extent of 435 t> 50 per cent have been reduced to a basis lower than those that were customary prior to 1928 and 1029. This has compelled the selling of a pertion of stocks owned to protect t re- mainder. Such selling, together with offerings to preserve existing profits. has had much to do with revising the general price list. There is still a substantial and po- tential buying power on which the market may ever it becomes panicky. It would be difficult to analyze the cause of this week’s increase in the loans of “others” when the average rate for eall money was the lowest in nearly four months and at the same time the average of industrial stocks was 25 points below that registered a fortnight ago. It might have been assumed that !he in- vestment trusts and the individual capitalists, who have money out on call, would have withdrawn enough of it for market, purchases to have reduced thel total loans. This may suggest that they do not yet regard prices as sufficiently attrec- profitable investment into a speculative fropomlom However, the funds are here and will in time be employed. Whether they will leave the call market for the stock market before the aver- age call rate drops below 6 per cent and there is established in the lender’s mind a consclousness that the period of high money i8 over can only be determined as the facts develop. Bpecial Dispatch to The Star. NEW YORK, May 25.—The Federal Reserve Board would immediately solve its difficulties if it Jowered money rates instead of raising them M. Rothenber- ger, paftner in the firm of Jerome B. Sullivan & Co., sald. Mr. Rothenberger suggests that a 312 | per cent rediscount rate would do more good than a 6 per cent rate as there would be no profit fo corporations in lcaning at such a low rate. He explains that the Federal Reserve Brard defeating its own purpose wien it causes uncertainty in the credit market by artificial restrictive measures, t is being used =5 An American motor hoa on the Roman Tiber. The court opinion was one of the | of railroad executives since the trans- & holdingg to better advantage at a later | lepend for support when- | tive to make a switch from a sure and | Banker to Retire | | A. P. GIANNINT, Noted Pacific Coast financial wizard, | t0ld Chicago friends the other day that he expects to give up banking on May 939, when he will be 60 vears old. | He became famous by establishing the | largest system of branch banks in the country. The son of an immigrant, he began business as a fruit dealer. BROKERS DIALECT HAS QUEER TERMS Trading in Wall Street Devel- ops Unique Style of Language. | By the Associated Press. NEW YORK, May 25.—Wall Street's | special vocabulary contains hundreds | of ‘words and phrases with strange and complicated meanings which would tax the ability of experienced linguists. Window dressing, whipsawed wash- ing, long and short pulls, dead stock, crowd, bottomry bond, dumping, going long, earnest money, soft. firm, easy, going short, ballooning, pyramiding, by the lot, carrying, dear money, pinholed, professional, shaking out, bucketing, bull, bunched, flier, bear and iron clad note are a few words of th> financial dialect that has grown until it would fiil a book. Window dressing is applied to the action of banks in calling loans in order to make their cash balances ap- pear large in their periodical scttle- ment. Whipsawed means that a loss has been suffered both in buying and sell- ing. Washing is the way Wall Street de- | scribes the operation of buying and | selling the same stock simuitaneously | for the purpose of making quotations | and generally for the purpose of in- | ducing speculation. Long and Short Pull. Long pull means the buying of an, issue for the purpose of holding it| s:veral months or years. Buying for the short pull is the purchase of stocks with the expectation of a quick rise, | enabling them to be resold at a profit. Bottomry bond is a mortgage on a ship wiich is payable at the end of a voyage. If the ship sinks the bond is forfeited. A sum advanced by a purchaser to a seller, to bind a verbal bargain be- tween them, is earnest money. { When the stock list is soft, it means| that prices are easily dented. Pirm is generally used as the antonym. Ballooning is what happens when prices have been pushed too high for safety and beyond real values. Pinholed refers to that condition a bond or security is in after having dozens of sale tickets pinned to it. Dumping is the practice of selling; in foreign markets below the price in the domestic market. It also refers to the offering of large blocks of a stock for sale in such quantity as to depress prices. “Shaking OCut.” Mhnipulation of the stock market in a way to force security owners to sell, is called thaking out the market. Bunched 1s applied to an operation in which s»veral brokers combine their orders. This is forbidden by the New York Exchange. Bucketing means the sale or pur- chase by a broker of securities against the sale or purchase by one of the broker’s customers. A fller is a speculative purchase of secufitles by one who is regularly en- geged in some other business. 'WORLD SETS SWIFT PACE IN BUILDING! By the Associated Press Current Department of Commerce re- | ports indicate that the world might bz | approaching one of its business periods of intense rebullding and gigantic engi- | neering construction. Construction projects now under way lor ready to be launched include every variety of undertaking. New school buildings are an important part of Canada’s program, but the list also| includes a copper refinery, textile shop, office buildings, stores, a freight termi- {nal, an orphanage, huge tunnel and a | number of manufacturing plants. On the world’s varied construction | calendar are included a department store in Norway, a hugh motion picture houses in Plymouth, kngland; $60,000,- 000 worth of public' works construction in Cuba and a number of restaurants, town halls, shops and officer in Great Britain. Huge electrical power houses are being bulit in increasing numbers | throughout the world, particularly in! Japan and South America. Shipbuilding shows o recent ten- dency to expand in all shipping coun- | tries. This fact, together with reports | of the construction of big piers and | the improvement of landing facllities in many parts of the world, indicate | widespread expectation of a gigantic world trade revival. Merchant shipping construction in- creased by 200000 gross tons during | the first quarter of the year, based on Lloyd’s Shipping Register. The total is slightly under the 2,893,000 gross tons constriction a year ago British yards ar- building 1,441,000 tons, the United St1tes 56,000 tons and | tve remainder in clher countries. | o | { | | | WEEKLY CLEARINGS. NEW YORK, May 25 (#).—The weekly statement of the New York Clearing House shows: Total surplus and undivided profits, $2,576,400 decrease. Total net demand deposits (average), $3.698,000 decreace. Time deposits (average), $3,764,000 decrease. Clearings week ending today, $8,068, 303,479. Clearings week ending May 18, $8,- 485,033.741. Clearings this day, $1,612,743,130. United Gas Improvement stock split- up: 5 new common and' !s thave $5 | preferred for each commen and rights | for 10 per cent n°w common at $20; [New Wall | horns taking the middle ground betwcen {the bull and the bear, { called it. | advantage of capital to seek a national i tional to State supervision. It was to place new common on $1 annual basis; dividends on new shares equiva- | lent to 85.62 on old common, versus | $4.50 now paid. INVESTMENT TRUST SHINES HARKETS | | Street Element; Uses Enormous Capital in Trading Operations. BY I. A. FLEMING. The real trouble with Wall Street is| that there are too many stocks on its trading list, that too many people are trading, investment trusts are too numerous and that every purchase and | sale made contemplatss the actual receipt and payment therefor of good American dollars, With the enormous operations of the | last few years the investment trust has | played no small part. One authority as typified this new factor in market | operations as a sturdy ram with great dy to join in the fight between the two old enemies, as_personal interests dictate. = Market observers have reported time and again_evidences of the part played in manipulation by the so-called invest- ment trusts making them speculative pools rather than investment buyers. With their enormous capital they u: it to inflate or deflate prices, influence advances and declines to their own advantage and aid the buils to advance and the bears to smash values. The ease with which large profits have been taken out of th> market in | the last few years by layman traders has caused such an influx of new buvers that it looks very much as if every one was speculating while the high rate for call loans has been a severe test for some bankers who have actually strained their own credit in an attempt to take advantage of high interest rates. The great rank and file of the bank- ing fraternity has not been influenced to action out of the normal kind, send- ing their secondary reserve of the Street while caring for their regular customers without advances in rates, save where lcans were desired to aid in holding on | to speculative securities. The Exceptions. In this, the fifth regional district of the Federal Reserve system. some bankers have almost overstepped good banking ethics in order to gather in the interest. They have borrowed from the Richmond Reserve Bank, through rediscounting, the only avenue open, grecdily, it being charged that their loans, in rare instances, excesded the deposits of their institutions. Collateral for the lines rediscounted | has probably been one of the factors in the betterment in Government se- curities. Statements of many banks, if forthcoming at this time, would prob-| ably rhow a large increase in bonds borrowed for use as collateral. It is even reported that the legal rate of interest has been exceeded in ex- ecptional instances where the borrower admitted that he proposed to margin s2curities with the proceeds. It is an easy matter to get around the legel rate when a lender wishes to do s0. In place of interest starting with the life of a note, it is deducted at the making thereof, “discounted” so that the rate is paid in advance on the loan. In computing the rate, interest thould alto be figured on the interest deducted. It is questionable if local bankers have taken advantage of the opportunity to discount important notes, although on small notes the method is frequently used but not to evade the legal rate of the District. Discounting is in general use by lenders of small amounts and moderately large ones to salaried bor- rowers, no in business and not pre-| pared to give security other than the {riendly indorsements of fellow em- ployes, which are insisted upon and an:cd upon as the real backing of the ncte, i | Threats Worked Well. Wednesday's liquidation on Wall Street was most_satisfactory to the Federal Reserve Board and to oth s interested in the strained credit situa- | 1 9 tion from the helpful standpoint. The threat in this instance came from the advisory committee of the Federal Re- cerve Board, which advocated the im- |1 mediate increase in the rediscount rates of certain Reserve banks from 5 to 6 per cent. These banks are among the in- stitutions that have been pushed to limits by speculative borrowing. Special Diapateh 1o The Star NEW YORK, May 25, 1929. Stocks (average of 50 issues) Bonds (average of 40 issues) Foreign oonds (averag> of 10 issues). Federal Money rates in N Call Time Reserve ratio ew York: Unfilled steel orders Pig iron production. Building permits: Number of cities Amount : Commercial failures (R. G. Dun Number .. Liabilities . : Revenue car loadings: All commodities... . Grain and grain products. . Coal and coke. . : Forest_products Miscellzneous produ & Co. ct: Live stock. s 590 . $538,446,731 Week’s Financial High'ights High. 24790 24233 25150 246.88 This Week. Last Week. . 87.39 87.50 104.79 Year Ago. 70.0 Last week. 6 to 15 9 Month of April, 1928. 3872133 105,183 . 104.64 Week. Last Week. 5.9 75.1 This week. sieitonn 9 to 912 Month of Mar., 1929. 4.410.718 119,822 Month of April. 1929. 4.°27.763 122,087 582 590 $407.365,423 347,940,526 reports) : 2 1.818 .021 1,987 $35,260,702 $36,355,691 $37.985,145 v 4.1929. Previous week. Year ago. 047,922 1,050,192 1,002,411 36,955 12 171.630 69.409 408,000 71,595 26,305 169,960 'GERMAN DOLLAR BONDS SAG IN REPARATIONS IMPASSE Special Dispatch to The Star. NEW YORK, May 25—The steady ragging down of price for German dol- Tar obligations in the New York market, with this week's prices the lowest in by American holders over the possibili- ty of a disagreement in Paris, which would undoubtedly have serious conse- quences on German credit and on their investments. ‘There are approximately $1,700,000,- 000 of various kinds of German external loans listed here. Some of them still the German government 7s, which have held remarkably steady around 105 throughout the three-month conference over reparations. On the other hand what are believed to be some of the strongest of the Ger- man credits have been consplcuously weak, such as the Central Bank for agriculture bonds, of which $110,000,- 000 were floated in this country and are now off 15 points from the original price; the state of Prussia 6¢s and 6 per cent loans, the Electric Power of Germany 61¢s, in which company the two years, reflects the nervousness felt stand above their issue price, notably | German government has a large invest- | | ment, and the honds of the strongest cities, such as Berlin and Frankfort. Germany’s public utilities, her great | electrical companies and her iron and steel combinations have all at different | times in the last few years financed their requirements with American dol- | lars. These Joans were widely dis- tributed in this country. Most of them sold a premium a year or 50 ago. Recently they have been dropping | steadily until they are well under their | | cost price. | All the pressure that could be brought ) on the German representatives in Paris has been extended by international bankers who have assisted Germany in recovering her credit and in supplving the capital to re-establish her indus- tries. It has been plainly stated that unless Germany agreed to the modifi- cations propo: by Chairman Young she neef not expect to obtain further loans in this country. ‘herefore, the market for German d<lar loans is being killed and unless there is a new German attitude, it will be a long time before it is re-established. { i | WHEAT PRICES GAIN AFTER EARLY DROP | Market Steadies on Rally After Values Decline to Record Dy the Associated Pres: CHICAGO, May 25.— A tumble in wheat prices today to below any level heretofore touched this season failed to bring about general selling, and the market promptly recovered. Rains in Canada were the chief reason for the temporary break in wheat values. How- ever, buying on the decline, specially on the part of previous sellers, developzd in sufficient volume to steady the market. ‘Wheat closed irregular at 's net de- cline to 1; advance, corn unchanged to 1, higher: oats, ! to down, and cents. WHEAT— No one would have been surprised if | ! the rates had been advanced Thursday, but the beard hesitated, probably for | the reason that 6 per cent is the rate | now asked by most of the larger banks from their customers in legitimats busi- ness. i Trading will probably feel the effect of the threats of higher rates for a few | days at least, and a carrving out of the | threat will, in all probability, await the resumption of trading on the broad scale and with advancing prices, luring more and more traders into action. Grain Speculation Easier. In the heyday of grain speculation on the Chicago Board of Trade the wheat and corn operators had a different way of doing their buying and selling. A sale of ‘wheat for May delivery did not contemplate the actual delivery of the grain, neither the next day nor with the advent of May, save on rare occa- sions. Only sufficient money was used in the transaction to safely margin it. It was generally contemplated that he transaction should be settled by a purchase of the amount of grain in- volved, also on margin, and the trade eliminated, and settled by the payment to the winner, if that term may be used, whether the seller or the purchaser, of the difference between the two prices— | 8o that unless in exciting times com- paratively small amounts were needed compared with the tens of millions re- | quired to clear a day’s business on Wall | Street. “Ringing the trade,” they | “Corners,” infrequently developed on the Board of Trade, resulted from the | refusal of some buyer to settle a trade, | to insist-on delivery of contrac's ang the buyer accumulating grain for a specific delivery, until there was much more grain bought for that delivery | than there was in store and the sellers, caught “short,” had to pay fhe piper. Quite as often the buyer found his back broken by the large receivts of grain, followed by the fizzle of his corner and financial ruin. Controller Pole’s Address. Before the Maryland Bankers' Asso- ciation on Thursday at Atlantic City the controller of the currency advanced | some decidedly interesting views of the stuation with regard to the national banks of the country. With other things he urged a new banking policy for the Nation to meet present day con- ditions. He said: “It is not criticism of the State banks and trust companies to say that the Government cannot rely on them to| serve {ts instrumentalities in the en- forcement of a Federal fiscal policy. “If 'Congress would protect {tself against the loss of its present banking instrumentality it must make it to the rather than a trust company charter. The aiternative, perhaps, would seem to be the elimination of the national banks in favor of 48 distinct systems of banks under the supervision of 48 separate banking departments. Within thé past six months 79 national banks with re- sources of nearly $8,000,000,000 have passed under State jurisdiction.” This criticlsm of the national banks will be a surprise to many, also the fig- ures regarding the transfer from ni en- erally believed that the McFadden amendment had given the national about equal advantages with the trust companies. They have the same right as trust companies subject to local Jaws, and may also add “trust com- pany” to their titles. They must carry Ik Octoner RIBS— |Mav July September Special Dispatch to The Star. NEW YORK, May 25.—The Alex- ander Hamilton Institute Review says today: The outstanding signs of a coming buciness slump are ¢1) continuation of high money rates with little prospect of a conspicuous decline in the im- mediate future (2) low bond prices (3) declining commodity prices (4) curtailment of building contracts (5) over production of automobiles (6) re- duction in loans to foreign countries (7) prospective curtailment of e wheat growers' purchasing power be- cause of the recent sharp slump in the price of wheat. The current state of business, how- ever, is decidedly satisfactory. Checks cashed in 141 jcities in April totaled $74,782,000,000 “this year, as against $67,003,000,000 last year. an increase of 11.6 per cent. Although checks cashed in April were 10.5 per cent be- 1o the March figure, this decrease was due chiefly to a quieting down of stock market speculation. CURTAILMENT IN COPPER OUTPUT HELD BENEFICIAL Curtailment of output by a number of leading copper producers cribed by Barron's Finencial Weekly as the most constructive step in many years, The industry has long suf- fered from wide price swings, and con- sumers as well as producers will benefit through maintenance of a staple price. If, as is expected, stabilization will be effected at 18 cents a pound for domestic delivery, the question of sub- stitution must bs faced. The Barron's writer belleves that substitution will be limited, and that the growing use of electricity assures a steadily increasing demand for copper. ‘“‘Where lightness 1s desirable in novelties or specialties, aluminum must win. Where zinc will answer, and cheapness is important, zine will be used, whether copper be 15 or 18 cents. But the real stable consumption of any metal is due to demands that it fills better than any substitutes. The expansion of nickel consumption, despite a relatively high cost, shows that price does not hamper expansion in flelds in which the product is betfer and more efclent than others.” s Sweeping streets is skilled 1 mzt;iemlon of a judge in England re- cently. | { | per cent of their capital stock—3 per | cent called—upon which they receive dividends. The controller called atten- tion to the fact that, while there were | 5,000 bank failures in the last eight | years, there was not a single fallure of | a metropolitan bank. State banks have not the capital or | resources, the management or the con- | trol that 1s given to national institu- tions, save in the District of Columbia. | The controller called attention to the trend of the age, centralization of capi- larger reserves upon which they receive no interest and they must also invest 6 tal, of industry ublic utlitites to the passing of the unit organizations. provisions unchanged to a rise of 20| is de- | | packed _firsts, Baltimore Markets Special Dispatch to The Star. BALTIMORE, May 25.—The general | live poultry market holds steady on ail I'nes with th2 exception of old hens. demand for which has eased off, and all large fat stock, especially Spring chick- ens 21 pounds and over meets with ready sale at full'quotations. There are too many small, thin Springers arriving. however, which are not desirable and chipment of this sort not advisable as | it only tends to lower the values of the | b-tter fowl. Mixed, colored Springers | 2 pounds and over are bringing 43 to 45 | conts a pound and 115 to 2 pounds. 40 to 42, but smaller wiil not bring over 35 | to 36, with Leghorns selling mostly 30 | to 40 as to size, while all poor. thin | fowl as well as stags generally slow sele | at 25 to 28. Old hens in more liberal | receipt the past week and with demand only fair th: market rules easy at 33' and 34 for stock weighing 31> pounds 2nd over, but Leghorns will mot bring | | over 30 to 32. Old roosters in ample supply and slow sale at 18 to 20. Young ducks in gocd demeznd at 23 to 25, but ¢ma’'l and poor ducks will not bring over 120, while old ducks cre not wantsd at | any prize. ' | Large young Guinea fowl, 3! pounds and over. scarce and wanted at 90 to .10 each, but smaller not so desirable t 50 to 75, while old stags are neglected t 50. A fairiy good demand prevails both voung and old pigeons at 35 40 a pair. Egg Receipts. Receipts of native and nearby eggs have been running moderate the past | week, but with fair offerings on the exchange market has held steady to firm all weex and closed at a slight cdvance over opening prices Mondey. A fair and constant Gemand prevails fcr 21l first quality eggs and no accumu- iations of this sort noted. The market ‘les~d today at 30 cents a dozen for firsts in free cases but small, un <ized current receipts will not bring ! gvar 20. While reczipts of old potatoes have been running light from ctirer sections {1 |a | Al for to 1 | i i | | 4 H | ation. oq CHINA IS SEEKING COMMERCIAL ERA Trade Expert Arrives in U. S. to Study Methods of New World. BY JOHN F. SINCLAIR. | Special Dispatch to The Star. NEW YORK, May 25.—Dr. Ts Zung Koo of Shanghai, China, has arrived in the United States. His coming has ot been heralded, nor have the news- papers given any great amount of space 1o his doings. Yet he and James Yen, the founder of the movement to sim- | piify the Chinese alphabet, are con- | sidered to be the two most important vyoung leaders in China. i While James Yen, who was in | America last year. was educated in the | United States, Dr. Koo received his | education in the Far East. Yet he | speaks English like a native, | For nine years Dr. Koo was on the administrative staff of the Chinese | roilway service. He was the Chinese | representative at the _international {opium conference at Geneva in 1925, | and has been in conference constantly with the new leaders in China, help- ing to shape the future of that vast country. Well Known in U. S. Two years ago Dr. Koo came to the United “States as_the oficial repre- sentative of the Shanghai Chamber of Commerce and 46 other leading com- mercial and financial institutions of China. At that time he addressed many of the leading business institu- tions of the larger cities and built up a marvelous reputation for coneise, comprehensive speech. Any one who talks with him ecan cee immedintely why he is one of the outstanding leaders endeavoring 80 earnestly to modernizs old China. “There are four basic points around which the bettle between the culture of the East and the culture of the West i3 centered in China today,” said the vouthful statesman. “The points cf fermentation are clearly seen by all competent students. Briefly, they are: 1—Western culture has entered China and brought democracy into a back- ground of autocracy. Of course, things are bound to happen in such a situ- 2—For 2,000 years, China's background has been ethical. Now comes the Western culture approach- inz us with the Scieaupwiafonk fer- mentation 15 most severe at this point. 3—The idea of socialism has made greai inroads in China, particularly with industrial and student groups. 4— China’s background hzs been built upon the theory that the individual cxists for the state, a social idea. The new Western approach emphasizes the value of personslity. To understand the pressnt China, keep these four points in mind constantly.” Dr. Koo is small, slight of build, per- haps in his early 40s, loogu twenty-five, with black hair and black eyes which giow as he g . I asked this Nationalist Chinese leader what his government was aim- ing to do. Wi‘hout 2 moment’s hesi- wacion he replied: “From 1505 1) 1911 was the plottine era. Before t I was too y to T 5 n the revolut! almcs. tco good to b2 true. o “Dark Years.” “In fact, it was too good to be true, for the years beiween 1911 and 1925 w2 might call the ‘dark rs' of modern China. The year 1926 was the crisis year. Then every leader who had the interest of China at heart realized that China’s only salvation was in gets ting together. This was the year the National’st movement really took form. “For iwo years, little was accom- plished,” Dr. Koo went on. 1 1928, most of the slogans 4 :0ple began with the words ‘down wiith." But now things are changed, redically changed. Most of the slo- ns today start with the words ‘build p. “So a constructive program could not be started until there was some basis for beiieving that the troublous condi- ticns wers smoothing out and settling Cé)‘ln. That settling down has already ctarted.” “And the new program of China is what?” I asked. “Briefly, we can put it again under four hezds,” Dr. Koo replied. “In th® first place, our leaders want political unification of all China. For the first five years after the revolution, the provinees rcfused to give up their au- thority to the naticnal government. But in Oc‘cber of last year the central government of China was created. That is important, bscause it was taking the first step first. When this movement becomes a little stronger, then there | | | he demand has eased off and the market is dull with values a shade lower at 1.15 to 1.40 per 100 pounds. but Mc- | Cormicks and Reds will not bring over { 1,00 to 1.25 a bushel for the former and {1130 to 2.00 for the latter. With increasing receipts of native and nearby garden truck, which is, gradually displacing Southern _veg- | etables, the market holds firm under: a fair-good demand at the following| quotations: | ‘Asparagus, 175 to 3.35 a dozen, but culls will not bring over 1.00 to 1.26 stringless green beans, 2.25 to '2.50 | hamper: beets, 1.50 crate; kale. 30 to 50 bushel; lettuce, 40 to 75 bushel: Spring onions, 1.00 to 1.25 100: peas, 1.25 to 2.00 hamper. radishes, 150 to 2.00 100; rhubarb, 2.00 and 3.00 100. and spinach, 25 to 75 bushel. Live Stock Market. | The general live cattle market holds steady under light receipts and on the | wharves and fairly good demand, but | centered, however. on first quality stock. | Common to crdinary cattle plentiful | and slow sale at inside prices. Spring lambs, 60 to 70 pound, in good demand, | but receipts have been more liberal the | past week and prices are mostly in buyers’ favor. Quotations today at Light Street | Wharf: Beef cattle, first quality, pound, 5t | 113z to 12; common to medium, 8 to| 10.” Bulls. as to quality, 7 to 8. Cows, | | choice to fancy, 7 to 9; common to fair, 4 to 6. Oxen, as to quality, 6 to 8. Calves, veal, choice, 14 to 141;: large, fat, 12 to 13; large, rough, 9z to 10; thin, 8 to 10; rough and common, 7 to 8. Sheep, choice, 6 to 7. Old bucks, 4 to 5. Lambs, choice, 15 to 16; falr to good, 12 to 14; common, thin, 8 to 10. Spring lambs, 60 to 70 pounds, 16 to 161;. Hogs, straight. 10 to 1115, Sows, Live pigs, 10 to 14. Shoats, 10 to 12. Closing grain quotations: Wheat, No. 2 red garlicky, spot, 1.08% bid; May delivery, 8.08% bid; corn, No. Z export May delivery, no quotations: No. yellow domsstic spot, 1.02a1.03; cob corn, 5.25a5.50 per barrel; oats, No. 2 white domestic, spot. 56a57: No. 3 white domestic spot 54a55; rye, nearby, 90a1.00. CHICAGO DAIRY MARKET. CHICAGO. May 25 (#).—Butter— Lower, receipts, 15741 tubs; creamery extras, 413,: standards, 413, extra firsts, 40%a41,; firsts, 39'2a40; sec- onds, 38a39. Eggs—Lower, receipts, 25,204 cases: extra firsts, 30';; firsts, 2915a30; ordinary firsts, 28a29; storage 31%; storage packed extras, 3134, B;nxl;lh to Japan. RIO DE JANEIRO () —Japan is forging ahead as a customer of Brazil with two steamer lines ving direct service between the countries. In 1928 the Oriental empire took 50,000 pounds of coffee, 40,000 pounds of sugar and ' 60,000 pounds of fro: ts. Of 9,300 bus drivers in London, 5,320 will be evolved a Domfirl constitution in which Nationalist China will fit. But so far, this has not been done. Problem of Government. “The national government is faced with two difficulties in its relationship with the provinces—what taxes should given to the national government and what to the provinces, and again— how much military power should be turned over to the national government, and how much should be left to the 2 It is along these lines that much f the disputing is going on today. Not to determine we want a Te- public, but to determine in a republie the place of the national government, and the place of the state h'.ovenmznt “Our second task, and this is just important as the first one, if not more 80, is to prepare a plan by which the people will become ready for self-gov: ernment.” “Self-government? self-government today?” “No, not yet. We have been an auto- crat for over 2,000 . Our people are not ripe for complete self-govern- ment yet, and it will take all of our time and effort to get the people of China ready to take over the power of governing themselves in, say or 40 years. This task of getting the people of China ready naturally falls into two divisions: First, the program of educa- tion. It is a surprising thing, that | through all of the troublous times through which China has passed since 1911, the program of education has re- mained intact. Every Chinese leader favors more and more education for the masses. Again, thousands of voluntary 1= zations have sprung up all over China. They are Helping in every way they can to create new interest in social, com- mercial and democratic movements. “The material development of China is our third task. Take electricity. Only a few of our larger cities have it. Mil- lions and millions of our le have never seen an electric light. task of lighting up China will take 50 years, and billions of dollars. ““Take the use of motor busses. It is expanding as fast as good roads are built. A romantic chapter in China's history. Millions of our people have never seen a motor bus. “The immensity of the task appals every one who has ever studied the subject. “The fourth big job is the re: ment of our international relaf The silk of China coming into the United States pays a tariff duty. Who sets the tari You do. American goods entering China g’y a duty. Who sets sets the duty? ‘ou do, for it is fixed by the Western nations, not by China. ~ You see, it is & case of ‘heads I win, talls you lose.’ We believe this relationship should be cha: “Again, when I enter United States, I am ruled by the laws of this courtry. but when an American or an Englishman enters China. he is still fa\‘m!d by_the laws of his own coun- ry, not China’s. The Nationalist movement wants to sce thise matters adjusted the basis of equity and zeciproeity. just- recently received awards for careful driving. y (Copyright, 1920, by North American Newi TRt e SAper Allianced TR