Evening Star Newspaper, September 8, 1929, Page 75

BANK STOCKS HERE MARKET SITUATION - GIVEFINERETURNS Riggs’ Latest Advance Draws Attention to Profits in Many Issues. BY EDWARD C. STONE. Attention was again drawn to Wash- ington bank stocks during the week when 30 shares of m changed hands on the stock_ex- change at $590 per share, a new high record. . At $590 per share Riggs stock ylelds but 2.5 per cent, which seems rather small at first glance. But the low for the year in the issue was 550, so that the gain of 40 points puts the yleld in an entirely different light. Local bank presidents will tell youl that many bank stocks in this city, as| well as in New York and most every- where else, are too high. The yield Is far too low, they say. But they shake their heads when you call their atten- tion to the gain in points which these investments have scored in the past few months. While Riggs furnishes the latest “shining example.” yet there are several other local bank stocks which have shown handsome returns during the nt year and for several years back. is the highest-priced bank stock in the city, with the single exception of United States Savings Bank, which is now. selling at 600, ylelding exactly § per cent. Profits Surprisingly Large. ‘Third in the list of high-priced local stocks is National Savings & Trust, which last changed hands at 560, al- though at one time this year it moved t0'570. The yield at 560 is 2.1 per cent. Next to this stock comes Washington Yoan & Trust, which last sold at 535, giving a yield of 2.6 per cent, and sell- ing once this year at 545. e low for the present year in Na- tional Savings & Trust was 507, so the K\.l:chmr of the stock at that figure & profit of 53 points compared ;Al:h resent quotations, in addition to ing vidends. Stockholders in Wash- gton Loan & Trust can add 13 points since the low of the year, not so start- 1ing, perhaps, but the stock has also been climbing steadily for several years. In the 500 class also is to be found Security Savings & Commercial, which recently changed hands at 517. This is 4 points under the high for the year and means a yield of 3.2 per cent. In the 400 class are to be found American Security & Trust, with a yield of 3.2 per cent at its present price of 456; National Metropolitan sell- ing at 410 and ylelding 3.4 per cent, and Columbia National quoted at 40214, giving & yleld of 3 per cent. To this list might be added several other lower priced local bank stocks which have advanced in recent months, giving their holders an excellent profit in addition to_the moderate dividends. In this era of bank stock investing, banks in the National Capital are play- ing an active part and making a show- ing which is highly favorable when compared with most other banks in the country. New York Bank Stock. Guaranty Trust, Bank of Manhattan and National City were the leaders from the standpoint of advance and activity in the New York bank stocks market during the month of August, these three issues recording gains ranging from 15 to 34 points net among the 14 active leaders. The range of the average of these issues shows some interesting changes for the month with a rapid recovery from the break which followed the advance in the rediscount rate of ‘the New York Federal Reserve Bank. The average price of 14 leading bank stocks on August 1 was 363, according to records compiled by Hoit, Rose & ‘Troster. Between that date and Au- gust 8 stocks held firm, with little gen- eral change, the average on the latter ‘date being 361. On August 9, however, due to the advance in the rediscount rate, the average dropped to 346, but recovered sharply after that level was reached, closi at 375 on August 30, which was the high for the month. Guaranty Trust was the leader from the standpoint of total recovery and net gain for the month. It opened at 905, dropped to a low of 880 on August 9, rallied to 997 and closed at 989, a net gain of 84 points for the month. Bank of Manhattan opened at 852, re- acted to 840, then advanced 95 points to 935, and at its close of 920 was up 68 points for the month. National City reacted 12 points to 388, then recovered 27 points from its low, and at 415 on :‘u‘\ut 30 was up 15 points net for the Y. An Amazing 10-Year Record. A 10-year growth of 15 representa- #ive bank stock investments, prepared by Clinton Gilbert, reveals some inter- esting facts concerning the progress of small initial investments made in these institutions. ‘The statistics are based upon the cost of 10 shares of stock as of September 6, 1919, of each of the following banks: Bank of New York ‘Trust, Bankers' Trust, Chase Nationfl], Chatham Phenix, Chemical Bank & ‘Trust, City National, Central Hanover, Continental Bank, Guaranty Trust, Manhattan Co., Manufacturers’ Trust, New York Trust, Public National, Title Guarenty & Trust, and the Bank of United States. An individual investment comprised of 150 shares, representing part owner- ship in each of the listed institutions, would now contain in the aj ate 2,084 shares through capital increases and par value reductions. A total orig- inal investment of $55,950 for 10 shares each of the 15 banks would be $126,403 as of September 5, 1929, by the addi- tion of $70453 in the form of sub- scriptions to new stock. Further, the present holdings of 2, cost in all $126,403, have an market value now of $504,120. ividends received during the .. period totaled $47,722, which, along with an tion of $377.717, gives & net it of $425,439, resulting from the purchase of the 150 original shares and subsequent exercise of subscription oo privileges. Rapid Progress in Trusts. National banks are registering re- markable progress in development and accumulation of both individual and corpon':u rglult bunxnfi ‘There appears no er ground for com- pfl‘fm, says Trust Companies Magazine, on the score of ki competitive latitude in the fiduciary field when it is noted that within less than a decade the national ““"““‘u“fifi'"'m‘fi‘:’@?afiii ts . have ul mm ts mdnl $4,237,638,663, trust com- tration. openuon': n‘nd act rave Sonie pencils, erasers, blank dexes, typewriters, calculating machines and chemicals are benefitting. The mbber industry is laying out huge sums raincoats for the Fall and Winter con- sumption of the school children. te | Federal Reserve ROBERT V. FLEMING, President of Riggs National, spent his vacation at Ocean City, N. J. During the past week Riggs stock touched $590 per ‘share, & new top price. HUGE SUMS SPENT AS SCHOOLS OPEN Clothing Bill . of Students Amounts to Millions Dur- ing Academic Year. BY J. C. ROYLE. Special Dispatch to The Biar. NEW YORK, September 7.—Retail trade today is experiencing to the full the influence of one of the potent fac- tors in trade known to America. This is_the ‘annual outfitting of school and college students for the academic year. Before the next fortnight is over, the families of this country will have ex- pended $2,250,000,000 at a most con- servative estimate, to prepare their off- spring to receive their education, most of which will be furnished them free. The United States has no prouder boast than is founded on its system of free and ' compulsory education, . but that education costs money entirely out- side the assessments on taxpayers who support it. There is scarcely s family in the country with children of school or col- lege age which will spend less than $10 per child in outfitting them for the be- ginning of school. Purchases Are Large. President Hoover has pledged himself to aid in the establishment of educa- tional facilities for the children near his fishing camp in Virginia.. He unquestionably will find adequate sup- port both from individuals and from the Commonwealth of the.Old Dominion. But it is extremely unlikely that the poorest mountaineer in that section will send his children to that school with- out some expenditure outside his ordi- nary budget. The self-respect of both native and foreign born citizens de- mands such a course. The purchases for this purpose will range from a minimum of $10 to several hundred or even several thousand dol- lars. On the opening day of the public schools in New York and Chicago and San Francisco and a score of other cities, the writer ventures: to' predict it will be impossible to find a child im- properly clothed among the pupils. Before the end of this present school year, the children of America will have scuffied through 80,000,000 pairs of shoes, and the manufacturers and re- tailers have to be prepared to sell that number. Makers and dealers in over- coats, stockings, caps, shirts, under- clothing and every ramification of fem- inine attire from kindergarten dresses to elaborate evening frocks will benefit. The demand of the younger generation as expressed in the next two weeks may change the whole style trend of a dozen industries. Publishers Benefit. ‘The educational demand pierces to the heart of a score of industries. The makers of school furniture feel it more in the Summer season than at this late DECLARED BETTER Sudden Deoline This Week Is Followed by Rapid and Strong Recovery. BY CHARLES F. SPEARE. Special Dispatch to The Star., NEW YORK, September 7.—Even & rampant bull market may become monotonous in the daily &n‘ up of new‘”agh n‘rtl‘m records, der conditions SUPDOTters grow confident. There develops a stale con- dition within it and s degree of tech- nical weakness. Then a sudden blow strikes it; it staggers, recovers and goes one its upward way. The air is cleared, weak unts are eliminated and from point ' the situation is materially’ improved. ‘This is what happened this week after a steady advance since August 9, during which the averages for indus- trials and public utilities had risen 45 points and the rails had reached the highest level in their history. ‘There was'no real change outwardly bout the colla) ply t other stocks would decline, just as they have been advancing. is a safe prophecy. Any one could make it. Soon- er or later it will be verified. It does not, however, seem to apply to the pres- ent situation. Already there is s bat- tle on betweenythe statisticians, with those marshaling the constructive facts in the outlook having the better of the contest. Many Undigested Securities. In only one respect is there a proper analogy between the condition in stocks and that which reached its climax in mn‘mmr:n;imu in mfl. ;flu‘t‘ is & grea y of undigested and “frosen” local securities with which interior mar- kets will have to deal for a long time to come. These have been created out of es, copled the policies of the larger cor- orations both in m g and in issuing new stock instead of bonds for capital urposes. ‘These securities interior anks are carrying in loans. Such loans w1 be liquidated slowly. An even more serious situation is that of loans by banks to real estate operators and to building and loan associations based on inflated valuations. Out of this there must eventually come in sections of the East distress not unlike that which has prevailed in portions of the South. ‘The unknown quantity in the market situation is the capacity of the invest- ment trusts to go on absorbing- stocks and their disposition towa their holdings as profits accruing become so large as to tempt their re-sale. So long as new trusts, with capital ex- ceeding that of many of our largest banking institutions, continue to be formed for the J: of buying se- curities, and at the same time the sup- ply of the character of stocks whic! they purchase remains unchanged it will be difficult to produce any very great or prolonged market reaction. We are firmly convinced, however, that the day will come when the investment trust will require -as careful study for what it may be doing on the selling side of the market as for the influence it now plays in producing market ad- vances. New Trust Capital Created. The largest amount of new invest- ment trust capital created since the movement in this direction started on a broad scale in 1927 is that of the last six or eight months. This coincides with the period of highest price aver- ages for industrials, public utilities and | empl rails, not only in the Coolidge-Hoover bull markets, but in any other. ‘Opportunities have been afforded in- vestment trusts and trading corpora- tions, whose charters were taken out as late as May 1, to realize profits on their capital stocks running at an an- nual rate of between 50 and 150 per cent. Probably no type of American corporation has ever before gained suc- cess on such a scale in so short a time. Naturally this has deeply impressed the” investing public, which recognizes its own limitations in measuring the ac- tual values of securities and also its lack of courage in staying with a stock when it declines. Consequently, the American investor has to a considerable degree abdicated as a direct purchaser of individual stocks. Instead he has placed his market af- date, but it is still a factor with them. The' makers of writing papers. pens, , CAT( o footwear, overshoes, slickers ‘and Publishers are reaping their annual harvest from the textbook fleld. Rail- roads are finding their passenger revenues augmented, while the sale of has sporting goods taken an unusual jump. FIFTH DISTRICT BANK REPORT ON CONDITION By the Associated Press. i RICHMOND. Va., September 7.— The Federal Reserve Bank of Rich- mond in a statement issued today showed the following financial condi- tion at the close of business Sep- tember 4: Resources—Gold with Federal Re- serve agent, $46,656,000. Gold redemp- tion fund with United States Treas- ury, $3,125,000. Gold held exclusively against Federal Reserve notes, 781,000. Gold settlement Board, $29,299,000. Gold and gold certificates held by bank, $7,157,000. ‘Total gold reserves, $86- 237,000. Reserve other than gold, $6,508,000. ‘Total reserves, $92,745.000. Non-reserve cash, $4,042,000. Bills Secured by United States obligations, ~$19,808,000. liscounted, $41,373. Total $61,181,000. _ Bills bought on open market, $2.956000. United States Government securities: Bonds, $1,152,000; Treasury notes, $657, 000. Total United States Government securities, $1,809,000. Total bills and securities, $65,946.000. , $49.- “fund with | cases ‘otal resources, $219,643,000. -Total liabilities, $219,643.000. ‘Total amount of bills discounted and bought for week ending September 4, $85,721,000. Ratio of total reserve to deposit and Federal Reserve note. lia- bilities combined, 62.48 per cent. FAST ACTION NEEDED. NEW YORK, ber o' nnsiber of stocks Anat are traded simultaneously in several dif- ferent countries have taxed the fairs with groups of men who he be- 1ieves have the facilities for investigat- ing securities and are looking more for long profits than for quick market turns, The commonest grievance that the American investor has with him- self is that in the last two years he has sold his stocks too soon. There is much figuring going on today through- out the country on the profit A or B might have made if they had held Steel, or taken their “rights” in Amer- ijcan Telephone or International Tele- phone, had not been argued out of their Atchison with 50 points profit at 200, but nearly 100 more points more today, et cetera, et cetera. Investor Feels Secure. As a holder of the stock of an in- vestment trust, whose portfolio contains blocks of practically all of the impor- tant corporation securities and whose management is supposed to buy more stocks when the market breaks rather than sell them, as the public has been in the habit of doing, the modern in- vestor has a ‘sense of security and sat- isfaction never before realized. It is true that if he were to sit down and work out the prices.of the stocks held by his “trust” on the basis of the cost to him of his investment trust shares, he would find that in some he had been paying quite remium for the & high et iasge, hows lect comj . ) = o e et 22 8] 3 ey ueg standpoint of careful investigation om infor s re-emphasized ‘that they are making their investments primarily in securl- ties .that may be high in price, but whose quality is undoubted. “Mob Movement” in Finance. The channel throtgh which invest- ment trust capital is flowing into market is steadily con A same time the volume of ‘this capital is increasing because d a§§§ Spectal Disvatch tc The Star. NEW YORK, September 7, 1920. Stocks (average of 50 1s5ues).....ceveoone « Bonds (a of 40 issues)...... Mi‘nb::d‘l"(.wo! 10 issues) . llono’ir rates in New York: Time 5 ' Unfilled steel orders. Pig iron production.. Bullding permits: Number of citles umber Liabllities . Revenue car loadings: All commodities. Grain and grain products. Coal and coke Forest products. Miscellaneous products. Ore ... Live stock. 577 579 $289,156,107 $265,147,516 Lo g ! 85 300.08 30188 9 This Week. Last Week. veees 8585 Vs Liiil 10445 10460 This Week. Last Week. ' 3 v 983 A Yo ar This Week. 6 tod 8% to 9 Month of June, 1929, 4,266,910 123,853 Last Week. 7T 09 8% to 9 Month of July, 1928. 4,570,927 99,091 Month of July, 1929, 4,088,177 112,110 877 $332,312,452 1,767 . 1,723 $31,374,761 429,586,633 929. Previous week. Year ago. 1,100,267 1,080,698 56,180 82,487 ¢ INSURANCE PLAYS LARGE PART IN MODERN BANKING SYSTEM Financial Institutions Extend Policies of Protection as Operations Increase in Scope and Size. BY I A. FLEMING. Insurance is & very large of the business nor does there seem to be the slightest indication that it 'flllnbe r:duead in ?fiwfll‘dh:‘!,m i terest paymen zefl charged with 25 cent of the total e , with banks straining their ef- forts to """".u';:. v,lfi. hcuh'.th;a m" when the previ Tl or cal money offer an opportunity to do busi- ness and make more money. But the cost of fiduciary insurance is mounting somewhat with the increasing risks that attend banking, so that there would be few days and nights of any- thing like peaceful rest from the dread of a hold-up, forgery is the fall of & heretofore honest telier, chicanery by a trusted member of the official staff who has been advanced to high place. When the crime is committed it stuns, it hurts and seems impossible, but it is borne by the bank with less regret if the loss falls entirely on the bonding, and as a rule it does—it is the bank’s business to see that it does. Kinds of Insurance. There are different kinds of policies, including the so-called blanket, like charity itself, in that it covers & mul- titude of sins. Here is the full list: 1. Bankers’ blanket bonds. 2. Individual fidelity bonds. 3. Burglary insurance in addition to bankers’ blanket bonds. 4. Hold-up and robbery insurance in addition to bankers’ blanket bonds. 5. Fire insurance on equipment. 6. Insurance on loss of business by reason of fire. 7. Insurance on loss of rent by rea- son of fire. 8. Forgery insurance on direct obli- gations of the bank. 9. Forgery insurance on savings ac- counts. 10. Forgery insurance on commercial accounts. 11. Group insurance on the lives of loyes. 12, ‘Insurance for injuries to the public or employes. 13. Tornado insurance. 14, Registered mail insurance. 15. Plate glass insurance. 16. Workmen's compensation. sistent placing around his peace of mind. Not All Sins Published. Not all crimes against banking are sppropriately punished. One man held in high repute as a note teller in some manner got away with $65,000 of money s, X short, comty tay i the Jal ments. A short, comfy stay e jail, rides after working hours. A close observer of many years in the banking business has noticed many instances of crimes unpunished in the slightest. insurance company has the say— ‘The the culprit generally is given disgrace- ful publicity, but it is up to the in- surers to prosecute. " associa- tions and the American Bankers’ As- sociation are in favor of exercising the law without fear or favor. What the insurance company wants is the recovery of the loss, all if pos- sible, in any event the limit that may be obtained from the relatives of the man who made the mistake, always “in- tending to replace it.” Life Insurance, Too. Banks are likewise interested in life | ;. insurance trustsvand in life insurance as collateral for loans. In this latter connection we are advised by the pres- ident of the District of Columbia Life Underwriters’ Association that the proper procedure when policies of in- surance mn‘"r tlg:eptzu%’ as ;olutenl is of pol under a per mifiment by both the an the beneficlary, and notice to the home office of the company issuing the pol- w{ such assignment with acknowl- ‘The cl is not sz S mamael = In the Matter of Fees. that of “tips” and “inside | pora and nup;m should be rendered. After man; Corporate Fiduciaries’ Associa New York City has agreed uaon a sched- ule for services. The matter has erally debated and given united able to discern signs of eral that have been on the down grade. &u n'r.'finhua:' will vote, e meeting, shortly wl%:.: & few weeks, L wm mcmm ear to be $1 per $1,000 par value of bonds and 50 cents per $1,000 par value of stocks deposited, with minimum annual fee of $10 for the statement. B, Agent—There should be no re- striction on the services to be rendered. ‘The fee should be 3 per cent on the income of principal to $500,000; 2'; per cent on the income of principal to $1,000,000, and 2 per cent on the income of principal over $1,000,000. C. Escrow agreements—a minimum fee of $26. D. Corporate trusts: 1. Transfer agent—VYearly fee, $150. ‘This allows for transfer of 100 certifi- cates and 50 cents for each additional certificate. Acceptance fee, $100, and attorneys’ fees. 2 Minimum yearly fee, [ ID . allows for the transfer of 250 certificates and each additional certificate, 25 cents, Acceptance fee, $100. 3. Authentication of bonds and notes —Attorney’s fee and, 1, 50 cents for bonds if all of $1,000 denomination. Optional—2, $1, par value Ol.md‘ cordance with the work involved. 4. Paying agent for coupons, ete.— ‘The charge for this service, 3 of 1 per cent on the amount of coupons. 5. Acting as fiscal agent and paying agent. (Making returns to the collec- tor of internal revenue). This charge, 1, of 1 per cent. Collection of rents, fee, 5 per cent on gross rents collected. Revocation te: under life insurance and Mr. Baden, chairman of the commit- tee, stated further that in considering the subject, htful consideration FINANGING RECORD August Figures Are Highest in History—Stock Total Is‘Huge. - Special Dispatch to The. Star. CHICAGO, September 7.—New in- vestment trust stock financing in August was the largest ever recorded. n?reunflnt 60 per cent of volume of new security offerings for the month, accor: mon?] investmen! and New York. ... ‘The huge trusts and financial offerings, totalling $372,152,500, more than offset the marked decline in industrial and pub- lc utility stock issues, as well as the the lowest level this year. 4 Total New Financing. ' The total of new stock, bond and note financing for the month was $625,~ 054,067. This represents an increase of ‘was pvmxl.:npr.:lr mfi i J:l’ll:l-:’ a) ly per_cen T than the total for August, 1928. Bond and note financing in August totaled $190,608,337, which is 9 per cent larger than the total for August, 1928, but 39 per cent below the July total. Stock offerings registered a total of $425,545,730, which is approximately 474 per cent larger than the unusually low volume recorded for August, 1828, but was 68 per cent greater than last month. s All classifications in the bond list showed a marked decrease from July. The volume of industrial offerings was less than half of that of the previous month. There were only 60 bond offer- ings during the month, as compared with 101 issues the previous month. Investment trust and financial issues 87 per cent of the volume of in August, as compared ‘with 60 per cent of the previous month. ‘There were 28 issues, the largest of these Mn, the following: Tri-Con- tinental Allled Co., Blue Ridge Corpora- Manhattan-Dearborn Corporation, 1l Utility Investments, Inc.; Fourth National Investors Corporation, Solvay American Investment Corporation and American Equities Co, Division of Underwriting. Of the combined stock and bond totals, New York investment bankers underwrote by far the largest share of the August issues, being responsible for a total of $314,769,750—29 stock lssues totaling $221,814,750 and 17 bond issues totaling $92,955,000. ~ Chi- cago was second with a combined total of $102,051,500—10 stock issues, total- 5 and 14 bonds issues ling $11,422,000. Boston was third with a combined total of $86,170,000, followed by Detroit and Cleveland. The Lawrence Stern & Co. (weighted hé :‘:hm yleld) ne‘w b;nd and r:mm offe figured at offering prices, lhowed“ another slight increase in Au- gust, the index !Mnfllg‘s;; 599 per com) w .95 per cent nfl":‘.’. largely due to an in real estate and railroad ylelds. The average industrial yield now stands at 6.11 per cent, real estate 6.23 per cent, public utility 5.75 per cent and ral 5.84 per cent. The forelgn aversge yield also showed a substantial increase, due to the high yielding $15,000,000 Chilean consolidated municipal loan, now being 7.50 per with 6.45 per cent tion, Insul t. Fune Porelgn Industris al Riliroad Totals 3190.508.337 ~$183.363.200 oFigures vy ihe Bond Buser, New Tork. STOCK FINANCING IN AUGUST. A t. 19290, t, 1938 BRI AUkt Pinancial Bublie 19,681:325 has been given to the varying condi- [ Real est tions of members of the section, recog- nizing that some have been engaged in fiduciary sérvice for many years, oth- ers for only a few years. PRICES ARE MIXED IN CURB TRADING Utilities Bid Up Violently—Food Shares Make Good Headway. By the Associated Press. NEW YORK, September 7.—Price trends on the Curb Market were confusing today, as violent operations carried a few utilities and specialties sharply higher, while week end profit taking de, a wide as- sortment of the recent leaders. Trad- g Was 1y heavy in the las hour, &nd the ticl ran for nearly half an hour after the closing gong. Standard Power & Light was again a sensational performer, adding more than 16 points on top of yesterday's gain of 22, an another record price above 170, Electric Invest- ors, however, a point, and American Superpower a fraction, United Gas Im) which has been rather al wumnrmer, closing more T, NEW YORK COTTON. Slight Reaction Caused on Report of Drought Relief. 4 Electric | the! d mm&sm%p:d&mfium $74,402,078 HIGH TRADE LEVELS" SEEN BY EXPERTS Parm Income Now Expected to Equal or»rul ‘Last Year's Revenues. Special Dispateh to The volume _ of investment |’ very heavy falling off. in bond offerings, w&h reached % MI INANCIAL Is Vauable Ruse In Selling Stocks By the Associated Press. utility management company rose uplfllfi on the nrencthp‘n S8~ tema lly circulated “grapevine” Tumors regarding new contracts. ‘ An officer of the company was’ asked for a statement and he “The are completely ndless. I happen wplh.nm’v it two or three large holders of trotted out these rumors to themselves a higher price.” rr UPWARD BUSINESS TREND CONTINUES Commerce Department’s Re- view Notes Spotty Condi- tion in Some Lines. By the Assoclated Prees. ‘The business situation in the United {can States during the week ended August 31 presented & number of spotted fac- tors, but generally speaking was a con- tinuance of the high volume of activ- ity and production which has prevgiled during the Sumnier. In most linés of g::ntr‘y‘ .:.gmy was at a higher level = rresponding period in 1928, loadings set new high records during the week. Wholesale and industrial commodity rices generally remained unchanged rom the level of the preceding week, but. agricultural prices showed rising trends, cotton and wheat being among those in. the latter ‘category. Business failures were less mumerous than irr eithier the preceding week or the corre- npox:fln:. Ngrrltod ot“llut ye:r. on the week’s busin z&d}fimfl. the Commerce Deplr&m:;: “The volume of money turnover dur= ing the week ended August 31, as Te- flected check payments. was lower than in the ‘week, but consid- erably higher than in the correspond- ing Pertnd of 1928, according to the ‘weekly statement of the Department of Commerce. Steel-plant activity showed a further recession, but was still con- siderably above the level of last year. The output of bituminous coal during the latest reg:rted weke showed a gain over both the previous week and the same period of a year ago. troleum production reac! record during the week. cotton into Crude pe- a new high i consideratyy were considerabl! larger than in corresponding perlog & year earlier. Cattle receipts at pri- mary markets were lower than a year 2go, while hog receipts showed a gain. ‘The movement of commodities through mu rehllol:mh as indicated by dings, s substantially greater than in the same period of 1928, General Index Lower. ' “The general index of wholesale prices showed little change from the previous week, but was 3 per cent lower than in the same week of last year. Cotton prices continued to rise, be! higher also than a year ago. Iron and steel Ecfl were unchanged from the preceding week, but showed a gain over the same week of last year.. Band loans and discounts were considerably larger than a year ago, but showed very little change from the preceding week. In- terést weeks on both time and - call money averaged higher than in either SOVETS PG, . FOR WORLD TRADE, Russian Government Is Tak- ing: Steps to" Increase * Volume of Exports. ]sml.l Dispatch to The Star. NEW YORK, ‘September T.—~Russian Soviet, leaders seem to be concentrating in these last few months of business expansion. Perhaps it would be better to say business stability. Two items of importance to Ameri- business, announced last week in .« Wway the wind is T the Soviet leaders ! an- nouncement that about. two nd Soviet' business men were now in the _ United States studying American indus- trial and bysiness methods, .29 United States does go so far as to permit . United States constls to vise passports . of Russian governiment agents for ad- mission into the United States. Evsry one of these’ agents who is mol 36~ sonally objectionable is given the per- mission to enter. - But no passports are given to the United States citizens for _ travel into Russia, due of course to the fact that the Government of the United . States has not officially the Sovlet g:emmem,-o{ Russia, althor it has n in control of Russian for a longer periéd now than the gov- érnment of any other country of Europe. Adviser Selected. ‘The’ second announcement of im- portance was that Thomas D. Campbell of Hardin, Mont., known as the world's jargest wheat farmer, had been selected by the Soviets to act in an advisory capacity in the United States for the Soviets in the purchase of new farm equipment to the tune of possibly $400,- 000,000 with snother $100,000,000 for road building machinery. These -are ‘Tom * Campbell; boy who now farms 90,000 acres of land in Montana, will have the op- portunity in “hie next fivé Years of | organizing and developing 30,000,000 acres—one third of all thé avafiable farm land in Russia. 4 & s It is said that the Campbell farming corporation is to' be used as a model in this new rural development. The farms will be divided fhto units of 100,.- 000 acres each. Each one of them will be a complete working unit in itself, with a local manager for eaich of them. All the machinery used for ‘each 100, 000 “units will be repaired at general shops and all electfic power ‘used will likewise be ‘generated there. It is thought that thé 100,000-acre unit is the size best adapted to the most effi« cient work. Doubtless this is the sug- gestion which Campbell himself has given to the Soviet government, and they have followed his estion. This new 30,000,000-acre development, it should be pointed out, is land that is not na&\zmu}vmon. It is virgin soil, 80 t of large scale opera- tion will be complete. When the Soviets get through with this experiment—for it is only. in an experimental stage yet —many valuable contributions should be learned from this operation, which can be used, not.only for Russia, but in other countries as well. Export Problem. It is known that while Russia is one of the largest producers of wheat at the present time, still during the last two years she has not.been akle to send any of it outside of her country. Russia not_only consumed it all but, d o & in her large g,,‘:‘. viét. govérriment was forced to & _considerable amount. Mr. Campbell visited Russia last Winter and already nearly a million acres of land have been put under cultivation. It is thought by nex‘tngum- | mer the Campbeil program be | under way- and ariother five million acres put under cultivation. Mr. Campbell himself is enthusiastic abont the scientific and thoroughly practical way_that the job is being undertaken. But even if it.is as suc- cessful as Campbell belleves it will be, he does not believe Russia will be able to export any wheat for another five But how much business is America doing with Russia today? It is known than | that two of the largest of American- last year. Stock prices reached high level during the week, whua‘b‘;;: prices, showing no cl from the g‘rgv_l.mu week, were lower than a year In forelgn countries the department reported that no serious effect g;'m :{:‘e Ar:eatgle svrgg dwhu}e‘ crop had yet e mrsuul“m_fltmm e irought conditions in le coffee market was quiet, had im- proved slightly with considerable op- timism prevalent. In Eastern Canada the business was described as 'S “fair to good” and for the prairie prov- op! ess and financial authorities, forecasts that general business will continue at cur- rent high levels for the remainder of flw:vfilu. le drought has substantially .re- duced crop prospects in some districts, the recent increase in icultural ices assures a total farm income at least equal and probably slightly above last year. In the industrial fleld the steel, au- tomobile and machine tool industries the Mdn{‘r.i; 4 newer indust radio, ‘electrical refrigeration l‘:d smflonul;au n:tnerd lumelzx:t l& become actors business situaf The two major unfavorable factors are high money rates and reduced activity. In neither of these , has the influence on business situation been suf- offset the many favorable GRAIN MARKET. ‘Wheat Prices Are Easier in Small Range of Trading. CHICAGO, September 7 (#).—Wheat the general ficlent to factors. §= g 4 & § g i g EE i5 E? i g i i lnceas ‘um‘;'eneou “Bri commercial conditions on the whole,” the department said, 'F:re on l'e::e) .p;:fi:p:n lll'll;fly better than they . some cases, notabl; in the coal and the iron and steel tndesy. conditions are considerably better than a year ago. Unemployment figures indi~ cate a steadiness of business. There is & general belief that a drastic reorgan- ization of the cotton industry is neces- aay m':"i.mpmva the cotton trade con- SAYS SPECULATION RAISES WORLD RATE Expert Declares Money ‘Supplies Are Greatly Reduced by Market Demands. By the Associated Press. 2 NEW YORK, September f.—Ben- jamin M. Anderson, econo: i Chase National - Bank. belleses ® that Call money has higher during the past two months than in the same period last year. The in- ce:nn {l:.l:n that th ld:u;n% m e America is m:‘?:: E" m":::.mh pay for m& to get increasing volyme of ch_transactions ign. countries, in fore] has raised the cost of credit for all pur- conditions, slthotugh | ti corporations—the Ford Motor Company and the General Electric Company— have both entered Russia on a fairly axb.l&anlhl basis. Ford has been selling Lately, he has agreed automobile and tractor and to co-operate with them in its op- eration for five years aufter its comple- lon. rd company is laying its plans carefully and it is understood that it will take at least four years before the Russian plant is ready to manufacturé. Until that time ‘Ford will be able to sell Ford parts with the co-operation of the government. The General Electric Company . has entered Russia in a rather vigorous way and has agreed to co-operate closely with the government in return for the sale-of its products on an instaliment . This is merely the entering wedge. It should develop into a very important part -of the company’s ac- tivities, for Russia’s need of electrical appliances is almost unlimited. . Other U. S. Concerns. 1 But thl:e tu'e nuthtr Am‘herlicm con- % cerns—almost as as the corpora- ° tions named—who hrn‘:/ee in their limited - way, made a business peace with the - Soviet government. - Some -of these are the H. L. Cooper. C. hkelping in the electrical power expansion; the Du Pont Co., the Longacre Engineering and Construction Co., the Radio ration %{, Am%fla, the Nitrogen ., an other engineering com- panies. * % In fact, the business already between Soviet Russia and mdfl‘lflhow' A pur- chases and es are handled in the United Staf to inc e 755,000,000 jeaek i ) Its line of credit. has also been 000 line of credit to aid in fts sion. 1. Theodore M. Knaj , sty Russian _conditions, m&“fl&& _ (Continued on Ninth Page.) T &) § i i 1 ; ik : 19.24a19.26; 19.55819.57. 5 2 £ H g H H : £ o § £F & Efi’sg ith l' i