Evening Star Newspaper, November 17, 1929, Page 90

6 WASHINGTON STOCK PXGHANGE 10 MEET Annual Session Will Take - Place Wednesday—Year Has Been Successful. BY EDWARD C. STONE. The annual meeting of the Wash- Ezwn Stock Exchange takes place next ednesday, November 20, after the reg- alar trading session. The Exchange %3 now winding up one of the best years its long history, trading during most ©f the present year having far exceeded that previously recorded. Transactions during the Summer season held up fuch better than usual and many single day's sessions this year have smashed all other records in volume of turnover. Along with the active volume of busi- Dess there have been many wide price fwings. Capital Traction stock has drawn special attention all the year. | The high for the year in this issue, has been 107';. The other day the stock sold at 75, the refusal of the Pub- Iie Utilities Commission to grant higher car fares having been assigned as the reason for the limited number of sale: at_the lower figure. Washington Gas Light stock has also commanded much attention. The con- tast over control of the company and | the possibility of expansion in earnings | by outside interests caused this stock | to climb to 131!3. This action was fol- lowed by a period of inactivity, but the New York Stock Market crash caused & small amount of it to be brought out the other day and sold at 100. Utility Stocks Popular. Next to Capital Traction the largest turnover in any local utility stock so far this year has been in Potomac Elec- tric Power 5!5 per cent preferred stock, nearly 4,300 shares having changed hands. The high for the year in the stock is 110. It is now selling between 102 and 103. ‘Washington Rallway & Electric pre- ferred comes next in the popularity list. ‘The stock is now selling between 93 and 95 after being up to 993,. The turnover has been about 3,500 shares. ‘The turnover in the miscellaneous list has also been heavy. As usual, Mer- genthaler Linotype and Lanston Mono- | type sales have been extra large. Broad | interest has been manifested through- out the year in local bank stocks and much more business has been registered in the bond department since the late Summer. The local exchange has no advance slate of officers to be voted for at Wed- nesday’s meeting. This year’s officials, who have taken wide interest in the affairs of the local securities market, include: George O. Walson, president of the Liberty National Bank, president: Ed- ward L. Hillyer, vice president Union ‘Trust Co., vice president; C. J. Gockeler, vice president District National Bank, | secretary, and Lawrence A. Slaughter, | vice president Commercial National | Bank, treasurer. Members of the board of governors are George O. Walson, | Eugene E. Thompson, head of Crane, Parris & Co.; Edward L. Hillyer, Y. Booker, head of Y. E. Booker & Co. C. J. Gockeler, John Poole, president Federal-American National Bank, and Carroll Glover, member of the invest- ment firm of Glover & Flather. Maj. Ennalls Waggaman, head of | ‘Waggaman & Brawner; Frank B. Pryor, | member of the same firm, and George | ©O. Wolson, as head of the exchange, | entertained the members at an oyster | Toast yesterday afternoon at Wild Rose | Shores. just_out of Annapolis. There | were about 50 in the party and a de- lightful afternoon was reported. ere were several guests present aside from the exchange members. The roast was held on the old Waggaman estate and the bidding for oysters was more excit- ing than any bidding for securities ever witnessed in the local mart. l FINANCIAL l . GEORGE 0. WALSON, President of the Liberty National Bank, is just completing a y service president of the Washington Stock E: change. The annual meeting of the sociation takes place next Wednesday, | including election of officers. INVESTMENT BOND PRIGES IN DECLINE Market Adversely Affected During Week by Action of Stocks. Special Dispatch to The Star. NEW YORK, November 16.—In the midst of favorable conditions for a re- vival of bond trading and consequent Aadvance in prices, the investment mar- ket this week touched its lowest level since 1925, The explanation is, of course, that forced seliing to secure cash to support stock accounts and to buy stocks at their new Jow levels was too great for investment buying to balance it. This was true in every session of the week except that of Priday, when the forced selling of domestic bonds died away with a rising stock market, and bonds responded with a general advance, South American Bonds. Apart from purely technical causes, | the feature of the market was the ex- treme weakness in some South Ameri- can bonds, particularly those of the Brazilian coffee growing states, and of the Brazilian government. Various projects to strengthen the intrinsically weak position of the coffee market have so far failed and Brasilian financiers have met with small success in trying to float a big loan to stabilize coffee prices. The Coffee Institute is said to be holding back the equivalent of a year's crop of coffee in the hope that some individual or syndicate will buy on the chance of ultimately realizing & compensatory profit. The chances of this, with security markets as they are, and so many fruitful sources of specu- lation and investment to hand, are considered nil. As a result, the obliga- tions of Brazil and her states have been sold at prices from 2 to 20 points below those of last week—new low prices for the year. Undoubtedly, also, the weakness in cocoa and rubber ‘lflm—‘lw exports of Brazil—have helped to undermine | these bonds. Advance in Bonds Pleasing. Local bond men were rcltly pleased | Wwith the advance noted in Government | bonds at the end of the week. Heavy | buying of United States bonds on the | New York exchange Priday, following | the brisk bidding earlier in the week, sent five of the seven active issues to new highs for the year. Most of the | buying was attributed to corporations and investment trusts, which have not been able to employ so large a percent- age of their surplus funds in the call- money ket as formerly. Deal were heaviest in the fourth | Liberty s, which advanced 23-32 to | 100 23-32 after having touched a peak | of 100 24-32. Buying of this issue was Political troubles, together with a resultant shutting down of trade, are blamed for the losses in Colombian bonds, which were brought out in ex- cessive amounts in New York in 1927 | and 1928, Other foreign bonds ended the week | fairly strong after touching new low | prices on Wednesday and Thursday. German issues were weak on Friday fol- lowing the publication of the statutes of the International Paymcnu Bank. The fact that the Nationalist referendum to decide whether or not | n d effect on these bonds. 3 unusually heavy in the outside market also. The first Liberty 4Ys reached a| new high for 1929 at 100 17-32, up 18-32 net for the day. Other record tops were made in the Treasury 414s at 112 19-32, up 25-32; the Treasury 4s at 108 19-32, 2. and the Treasury 3%s at 2, up 9-32. Klein Finds Inventories Low. Assistant Secretary of Commerce Klein says that none of the usual signs of a business crash are visible as an aftermath of the recent stock market decline, inventories showing no conges- tion in merchandising stocks. “There is a steady adjustment be- tween supply and demand,” he added. “Wholesale prices are relatively low. | ‘Taking the year 1926 as the normal| basis of 100, wholesale prices now are | at 933." Klein, however, took cognizance of the losses suffered by thousands of large and small investors in the mar-| ket slump, | “There won't be much tinsel on| America’s Christmas tree this year—but | there will be a tree,” he said. | Financlal District Gleanings. John B. Larner, president of the Washington Loan & Trust Co., has been appointed a member of the committee on legislation of the trust company di. vision of the American Bankers' Asso- ciation. This is considered a highly im- portant committee. Mr. Larner has al- ready served on many other A. B. A. committees. { ‘With the introduction of a new form of A. B. A. travel check, reduced to the size of the new paper money, the American Bankers' Association and the. Bankers' Trust Co. of New York an- nounce that a $200 denomination will be available for the first time. Here- tofore the checks have been issued in denominations of $10, $20, $50 and $100. The lower purchasing power of the dollar, as compared with the values 20 years ago, when the checks were first adopted, prompted the addition of the $200 denomination. Luther A. Swartzell, vice president of Market in Good Position. For the rest. the bond market is now | in a good position. Bond prices are low, vields are high. Money is cheap. Time- money is 515 per cent, with ightly better rate obtainable in the outside market. Brokers' loans have come down about $2,750,000,000 from their high | point of a month ago. And the scarcity 5f bonds continues, with only $45,761,000 new offerings during the week, against $50,000,000 called in the same period. The new offerings compared with $16,866,000 last week and $75,765,000 a year ago. New issues included $20,000,000 Nickel Plate three-year 6 per cents, $18,500,000 Montreal Harbor Commissioners, 40 years, .5 per cent—guaranteed by the Canadian government—and a number of’rn;]um:!pll [nd state issues. e American Sugar Refining Co. called $5.000.000 of 15-vear § per cents and the Union Pacific decided to pay out of cash reserves $45,000,000 of Oregon Shore Line 4s, which it guar- anteed. UPTURN IN GRAIN PRICES IS RECORDED Wheat Closes Four Cents a Bushel Higher on Constructive News. By the Associated Press CHICAGO, November 16.—Optimism at Washington over the prospect for high grain prices and a thriving export busi- ness in North American wheat buoyed up prices on the Chicago markst today, | and wheat reached its best levels of the week. The close was 43 cents a bushel higher than yesterday, March wheat having advanced to an extreme gain of | | 4% cents during the session. The table: Swartzell, Rheem & Hensey, has just completed 51 years of service with this widely known local firm of mortgage | Wheat — December March Close. E 130 bankers. Mr. Swartzell is in good health | }15¥ and keeps in very close touch with | Corn both local and national business affairs, | December , ‘Washington brokers state that i vestment buying was undoubtedly the reason for the stronger tone on the New York stock market at the end o% the week. Yields on sound stocks at present levels are considered to 'O to be resisted. Some first-cl stocks are lower now than they wer four years ago. Care in the sclection of issues is the big point brokers here are stressing. RADIO CORPORATION REPORTS ON EARNINGS By the Associated Press. arch May | —onts | December | Maren ... May | | COPPER COMPANY SOLD. | MEDFORD, Oreg., November 18 (/).— | Closing of & transaction whereby the Consolidated Copper Co., of this eity obtained control of the Blue Ledge Mine NEW YORK, November xn.-—’rh.' property near here from the Charles H. Radio Corporation of America and sub- | Towne estate of Boston, Mass., and the sidiary companies, including the Victor Guggenheim interests was announced 'alking Machine Co., reported net earn- | here vesterday by George F. Hughes of ings for the quarter ended September Los Angeles. Hughes said the financing 30 of $8720.389, and for the nine|of the purchase and for development months, $13,725,876. This compares | Was provided by Middle Western and with net for the corresponding quarter Eastern capitalists. last year of $5,221,145 when the Victor S e il S l“"” “‘"“d;‘k-&';:’:’ ,,‘,':' SILVER QUOTATIONS, ccme from sales, commu . H the third NEW YORK, November 18 (&), estate and other operations in Ber Chveh, UL Agpnen dotiave, 38 was $63,271,926. 3. | i foundation THE SUNDAY STAR, WASHINGTO pesae Exchange_| (QUTLOOK IN STOCK | [ Weeeke MARKET IMPROVED Week Ends With Rally as Credit Situation Rapidly Clears Up. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, November 16.—Con- struetive policies of a local and national character got the better of destructive forces in the middle of this week and abruptly checked stock market liqui- dation of a more alarming character than any that had preceded it since the downward movement in prices be- gan early in October. The week ends with a recovered | poise by Wall Street, a substantial rally in stocks from Wednesday's low levels and with the ills of the money market fast disappearing, as quotations for securities again approximate their actual worth. One can not be too confident of the immediate outlook for stocks in view of the enormous amount of wreckage from the market collapse that is strewn over the country. There no doubt will be days of reaction and discouragement as stocks “taken over” to relieve firms, corporations and individuals are slowly liquidated. There will also have to be price adujustments to changes in the lortunes of corporations, as a smaller volume of business affects their earn- ings and their ability to maintain divi- dends. It looks now, however, as though the acute phase of the stock decline, which have deeply involved the markets for commodities and for do- mestic and foreign bonds, has over and that with the 40 per cent cut in brokers’ loans, the reduction in the Federal Reserve rate of rediscount to 415 per cent and a general slashing of short and long time interest rates, ihere would be a gradual stabilization of prices of speculative securities and im- proved demand for investment issues. Fear Seizes Stock Buyers. The fright which possessed holders of securities early ‘this week, and brought men with the highest grades of stocks and bonds down to Wall Street with the determination to sell them at any price, was due lurx!!y to the failure of the market to hoid the rallies that had followed the decline of October 24 and October 29. It was intensified by the knowledge that many individuals and corporations had purchased stocks | between the middle and the end of | October on the assumption that they | had reached bottom only to find them- selves in much the same serious situa- 2:‘1,\’“ n? othil: ::l(;! had lurrletl 8tocks Tom the level of t October 24, © T This caused the resale of great| quantities of stocks only recently bought and a terrific shrinkage in the market value of the shares of trading corpora- tions, investment trusts amd institu- tions that were known to have prema- turely entered the market and to have nearly exhausted their cash resources. This combined selling by two groups brought Wall Street closer to disaster on Wednesday afternoon than it had been at any time previously this year. A phase of the distress which con- tinued for another 48 hours after the stock market crisis had passed was the offering of the primest municipal and torporation bonds and of public utility | preferred stocks for bids, and the| sacrifice of these investment issues| either to protect margin accounts or to employ their proceeds in the pur- chase of depreciated equities. Along | with it was a virtual colla in the market for & considerable body of South American and Central American bonds and in German issues which were floated two years ago when salesman- ship was at a premium and ignorance 111!5 values of foreign securities astound- 8. Europe has had her great currency panics since the war in which the Rus- sians, Germans, Italians and the French madly exchanged their depreciating money for securities or converted it into commodities or real estate. With America panic took the reverse form. ‘The American public that had been in the stock market attempted to convert shrinking securities into cash within a few weeks of the time when securities to it appeared more valuable than cash This stzange flight of capital is one of the most extraordinary chapters in post- war financial history. On s Solid Foundation. Securitles now rest on a more solid than they have had in several years. They pay good dividends at current prices. Even should divi- dends be reduced somewhat in con- sequence of smaller operating profits. this contingency has been fairly well discounted in this week’s low quota- tions. Obviously there should be a careful selection of stocks to avoid in- vestment in industries that must be af- fected by what has happened in Wall Street. There should also be a close analysis of present prices in relation to prices of the same stocks on the old basis of classification. While many look cheap today it will be discovered they are not bargains when they are traced back through a series of “split ups’ and various capital diluting processes. As a middle ground between the pu chase of “equities” at their present lev- cls and yields and mortgage or deben- ture bonds, the public utility preferred stock today carries with it most attrac- tive features. In this week's massacre of investors many such stocks were ressed down until they touched prices giving the buyer a return of from 6 to 7 r cent, and in one notable instance of nearly 10 per cent. Formerly the ob- jection to this class of shares was that they carried with them small possibili- ties of appreciation, as many were close to their call prices. This no longer ob- tains, for they are quoted all the way from 10 points to 30 points from the redemption figure. There is probably less likelihood of disturbance to public utility earnings in the near future than to those of industries or railroads, which makes this group of preferred stocks one of the most satisfactory out- lets for those who now have investment funds available. These shares, like bonds, are influ- enced by money rates. As time money has declined in the past 6Q.days from above 9 per cent to 5'2 per cent and 1 |as a 4% per cent rediscount rate will compel a steady reduction in the rate on call, prefererd stocks, along with fixed interest obligations, will benefit thereby. Strength in Business Situation. The abllity of Wall Street to through the greatest and swiftest depre- ciation in securities in its history » | due to the universal demand for ade- quate margins on brokerage accounts 132 * |and to the manner in which the New York banks had fortified themselves against just such an episode as had oceurred. The strength of the business situation at the present time rests in the cautious attitude of merchants and 30'2 | manufacturers throughout a long period of prosperity, so that today there are no serious complications in the way of ex- | cess stocks of merchandise or inflatea prices of commodities. In the seven weeks of decline in stocks, commodity prices are off about 2!, points and nearly 3!z points since the end of Jul&. The wholesale commod- ity index lower than it has been previously this year or during 1928. This change has been affected in considerable measure by the decline in wheat and cotton. There are also many other ele- ments associated with it. It can hardly be expected, however, that a slump in securities, estimated t% have reached a figure equal to one-half the annual income of the people of the United States, can fall to have its effect on their purchasing power or on their mental attitude toward the things they While it is true that a of the shrinkaj per profif normally buy. cline in and savings of Lhmmu of individuals. s Financ Special Dispatch to The Star. NEW YORK, November 18, 1929. Bonds (average of 40 issues) Foreign bonds (average of 10 issues).. Federal Reserve ratio. . uocl:;y rates in New Yorl i Time Unfilled steel orders. g iron production. . permits: Commercial failures (R. G. Dun & Co. Number . Liabilities Revenue car loadings All commoditie Coal and coke Forest product. Miscellaneous pr oducts o ..., Live stock.. Stocks (average of 50 fsSUeS)......cev. B 584 . $250,583,028 ‘Week of November 2. 1,071.65 ial High Lighté Last Week. Low. High. Low. 176.09 212.00 197.20 This Week. Last Week. 86.65 86.01 104.11 104.56 Last Week. Year Ago. 69.8 674 This Week. Last Week. 815 to 6 6 815 to 6 6 to 6% Month of Month of Sept., 1929, Oet., 1928. 3,902,581 3,781,030 118,553 108,822 This Week. High. 186.95 ‘This Week. Month of Oct., 1920. 4,086,562 115,745 596 584 $218,344,506 $292,359,188 . Teports) : 1,568 2,023 | $34120,000 $3¢,990,000 1929. Previous week. Year ago. 50 1,133,810 219,845 62,605 449,097 50,228 38,760 1,822 $31,314,000 33,059 ! PANICKY STOCK Action of Exchange BY I. A. FLEMING. Governors of the New York Stock Exchange showed the financial kings of the country how to check panicky selling of stocks far below their actual value. These big fellows, the kings, appar- ently did not care much about the drastic character of the liquidation, permitting the rank and file of margin speculators to take their medicine irre- spective of the dosage. Margin calling was not an amuse- ment to the brokers of the country but a necessity, and they did not hesitate to press for more and more margins at the first indications of the de-pyramid- ing of the millions of shares of long stock, on which but & part of the price had been paid. That the drop was not worse was due to the large margins that were demanded for marginal pur- chases. For years traders in every city, men, women™ and some near-children, . have been trading in stocks and generally making modest profits. Other more important operators have been piling up, pyramiding profits, until they were 50 large that the fortunates hesitated to cash in, disliking to give the Gov- ernment its large share—and the tear- ing down process has wiped away money earmarked for tax money and bank ac- count alike, When the speculators, large and ;mllll. squirmed there was none to help. elp. No Money for Stocks. ‘The banks would not lend a dollar for marginal account; securities that had not lost such a large part of their intrinsic value on paper were brought out of strongboxes and sold on the mar- kets where they were listed, bringing serious declines. Bargain hunters, figuratively, roamed through the lists of the New York Stock Exchange, made their selections and the banking fraternity refused to advance the money to acquire the stock. “The first duty of this bank is to its customers, then its shareholders—if you want cash for your business you can have it—not for stock purchases, out- right or margins.” Nearly three weeks of declines, pools giving it up just as the small trader had to, the clerk and the millionaire, and it looked as if there really wasn't any bottom to the market, days they will stop comment of one of older traders in Washington. No one inquired about investment trusts, bank support, Rocke- fellers buying, etc., they had lost con- n:ence in the big fellows—they doubted them. “Put You Cards Down—Face Up.” ‘Then came the order to all members of the New York Stock Exchange, “Members of the New York Stock Ex- change will furnish full information regarding their transactions in stocks, their principals, amount of specific stocks, long or short, and the principals, and all other facts in connection with transactions on the New York Stock Exchange by Saturday evening: out- of-town members have until Monday morning to report.” In other words, expose the innermost secrets of your business. And when the governors call the ‘members respond. Some Could Not Afford. It will be an interesting “Exhibit A™ that the governors will have before them for their consideration. slump—plain talk about truth—have re- mained hidden by brokers’ secrecy, but they do not want to be r top and pressing at a time like this, when perhaps they are accredited with trying to check the decline. It is one of the probabilities that many of the short the account of magnates, and coverin; that sent the market to higher levels Thursday and Friday has closed many of these accounts, so that the governors will still be in ignorance. Mr. Mellon Helped. Secretary Mellon aided also in his prediction of a material reduction in income taxes. A reduction would be very welcome to big and little business Am\t now, a bit spotty under the in- uence of the stock panics. The se- our larger cities, is sadly strained. It is the gilt-edged stocks no less taken out of vaults and dumped in an effort to raise the needed cash to pro- tect a Wall Street transaction, while many an_investor, high and dry and unaffected by the smashes, has been scared and turned his favorite invest. ment into cash. Many Really Unaffected. BY "SHORT SELLING™ INQUIRY to Frightencd Liquidation—Tax . Cut Also Big Factor. “Some one has money—one of these | off,” was the | Interests that have been aiding the | ecognized as on | for further depression | ies have been for | & Improvement in Values Is Noted curity situation in every mart, in all; than the minor shares that have been | While there have been very serious SALES HALTED Governors Puts End will in time recover the greater part of | their apparent loss. It is the record of the past. Stocks held in strongboxes, paid for, wil} come back one of these fine days. Is goesn’t require a very long memory to recall Steel common at 70. Margined stocks that have been sold for the account of the buyer are gone for good and all. ‘Wherever {ou may place the respon- may also place the responsibility for killing the greatest bull market that ‘Wall Streel has ever known and also for dragging out the finale, if finale it be, a long time. It was hard work to smash the list to the lows, so far, for the trad- ers had grown fat and considered the market a plaything for themselves, but once accelerated the pace downgrade was daszling. Has the Market Turned? ‘This was the question on the street Friday and around the offices and banks on Saturday. Will the rs come out again on Monday and take further toll, | being again able to hide their identity? ‘Time will answer the ‘question, but it would“not be much of a surprise for many if an attempt was made to start the reactionary trend again. The ch@ince from now on, in the opinion of many brokers is for a two-sided market, with improving trend. - According to the statistics of the American Bankers' Association, the total savings deposits in the United States as of June 29, 1929, were $28,217,656,000, representing a decline | | from the previous year. There was also | & loss of 500,000 depositors in the same ear. % Gains were made in the New England and Pacific States, and the losses were gltntrlburod largely’ through the Middle ates. New England reports & gain in sav- ings and in depositors for every State, equal to $10 per inhabitant. Last year New York gained $49 per capita, but | this year the increase was $6 per person. What would statistics based on the present show? More savings poured into the vortex of speculation. Mayhap some of the savings are finding invest- ment, for there are many stocks, good. safe purchases, that will pay for their purchase-plus. Money will be a cheap commodity again within a short time, but the 10- share traders will have to save before they will again cut much figure in stocks, Local Securities. In common with other security mar- kets, the local situation was sadly strained, many stocks striking new lows and many of the best shares sustaining substantial declines. ‘The banks of Washington are in fine condition and no permanent price re- cessions are anticipated. Capital Traction dropped to & new low at 75. There should be supporting orders around 70 to 75, but probably a little weakness when the dividend cut_is announced. Capital Traction shares are not going to pleces. The company cannot geu | higher rates from this Utility Commis- sion, but it can cut’its dividend to 5 per cent and pay that dividend, irre- n;peeuve of the court action on higher ares. Merganthaler directors meet Tuesday, the shareholders at Brooklyn on Wed. It will be a proxy meeting of smail importance. Directors will de- clare the increased basis dividend and ! | igh-grade Potomac preferred shares have sold off with the rest, but they are safe for the future COTTON PRICES GAIN IN ACTIVE TRADING at Short Session of Exchange. Special Dispatch to The Star. NEW YORK, November 16.—The improvement in prices on the eotton exchange which started Wednesday gained momentum today under the largest volume of business of the week, and December sold at 17.57, or a cent a pound above recent low records. Strength abroad and a virtual ces- isation of all selling preisure left few |contracts in the market and nctive buying operations carried the list up over 30 points, ending at the top. Spots | were advanced 25 polnts to 17. ! A further sharp advance in Live | pool prices due to continental buyin ;0f American contracts in that mar- !ket helped quotations here. A gain in wheat and the improved | be_high lplllk'd green and coloring forced. losses to many, there are also many Who | feeling in commodity markets generally have sustained large paper losses who have not been forced to sell and who J——— | 1t _has rendered unsaleable for a long | period of time many corporations and Iveal estate securities that in the | hands of individuals and institutions. By just €0 much this reduces the buying and lending power of the holders. Tax Reduction an Aid. An_unfavorable effect on business, therefore, of the stock market collapse can hardly be avoided. At the moment it is more sentimental than actual. It will probably show up more clearly in | the next few weeks. Such a program as a reduction in the income taxes of corporations and individuals should tend to_modify it. On the other hand, the political situation in Washington aggra- vates it. Although there are potentially greater aecommodations for iness as a result of the decrease of $2,700,000,000 in Wall Street loans, it 1s doubtful if this new supply of credit will be in demand im- nmrlnuly. as the business man is dis- posed now to try and get his bearings rather than to ahead through the fog, after the nightmare experienced in the last three weeks. i reduced selling pressure and for two days very little cotton has been coming on the market in the shape of hedges from the South. Reports from Memphis indicate little good grade cotton pressing on the mar- ket and shippers are endeavoring to ‘secure supplies to fill Dezember en- gagemnts. Owing to unfavorable weather and the fact that larger pot interests have bought steadily during {the earlier part of the season, the | basis remains high and in many in- {stances has advanced despite develop- | ments financial circles the past few | weeks. According to reviews of general trade conditions, speculative pressure light- [ened preceptibly toward the close of the week and there was a tendency to | ;look on the brighter side of things| | pending a clearer view of the extent of ireadjustment. This is now conceded | to have been fully warranted by the | | speculative excesses of the early - part of the year. | Cotton range: Open High Low Dec. 1787 17, Ja May Jul | Clos= D. C. NOVEMBER 17, 1929—PART FIVE. . TRADING 1S QUIET AT D. C. MARKET Large Supplies Carried Over by Dealers—Poultry Receipts Heavy. ‘Wholly unsatisfactory trading condi- tions along most lines in the wholesale district were reported at the close of | the past week's business. Market closed with large quantities of commodities of various kinds still undisposed of, | dealers reported, some of them perish- able, while they had plentiful supplies of commodities which could be carried over to start the coming week's busi- ess. Retailers in the vicinity of the whole- sale markst district came to the rescue of wholesalers to a limited extent and disposed of fruits in an advanced stege of ripening and vegetables which ecould not be well carried over to next week, thereby saving total losses on such com- modities. Immense quantities of poultry were received by wholesalers for the week end trade, and coops of chickens, ducks and keats were very much in evidence. Turkey receipts were not very heavy, although buyers displayed much inter- est in prospective receipts for the Thanksgiving holiday trade and the probable prices which will prevail, More Shipments Expeeted. It was reported by local dealers that many carloads of turkeys will be head- ed in this direction, chiefly from the South and West, early in the week. Fairly heavy receipts of live turkeys are expected to begin tomorrow and co tinue until 2 or 3 days before Thanks- giving. Dressed stock probably will not reach here much before the latter part of the coming week and the first of the next week. “Receipts of dressed turkeys,” said a dealer, “will depend much upon weath- er conditions. Should the weather next week be anything like that of the past few days, receipts of the dressed stock will be late reaching here. If, on the other hand, the weather gets cold, re- ceipts the middle of the coming week should be fairly heavy.” Information from the turkey-raising sections of the South and West con- tinue to tell of plentiful supplies of the king of the barnyard fowls ready for market, receipts promising to be much heavier than during the ‘Thanksgiving periods the past few years. Nothing definite has yet been stated as to th» actual prices which will prevail for the holiday trade. but dealers continue to forecast a probable 45 to 50 cent market. In San Antonio, Tex., & section from which heavy shipments of turkeys are made to this city for the holiday trade, the middle of this week, toms and hens, alive, were quof 20 and 21 cents, while at some other points in Texas, buyers were trying to get ship- ments as low as 18 cents, the informa- tion being furnished by the Bureau of Agricultural Economics, Department of Agriculture. The usual differential of 5 cents less for old toms and 10 cents less for No. 2 stock is made, according to the Gov- ernment report, and the wide range in Duytne: ?rim is_indicative of the un- settl feeling among the trade. “No matter what happens,” remarked & dealer, “there will be plenty turkeys to luppl.)‘! demands and prices will not Closing of yesterday’s markets found live turkeys quoted at 35 and 37 cents, dressed stock being held at 43 and 45 !?; young stock and 39 and 40 for the old. At the closing of the week’s market dealers reported prices of commodities at about prices quoted yesterday, as follows: 4215043; Eggs—Hennery, 58a60; fresh I ~“FINANCIAL l Banker Honored JOHN B. LARNER, President of the Washington Loan & Trust Co., who has been appointed a member of the legislative committee of the trust company division of the Amer. fcan Bankers' Association. He has al- ready served on several other A. B. A. committees. FARMERS ESCAPE INMARKET CRASH Little Damage Caused Grow- ers by Price Collapse. Grain Sold Early. BY OWEN L. SCOTT. Special Dispatch to The Star. CHICAGO, November 16.—While the stock market was reaping destruction in the financial centers, the Nation's farmers, who had something of the same sort of calamity hit them in 1921, this time have ‘escaped with little damage. Prices of grains and some other farm commodities have been smashed by the general speculative debacle—with 20 per cent of the value of wheat knocked off in almost no time—but still the re- turns are but little under a year ago. December wheat at this time last year was selling around $1.15 a bushel. It is there now. The same is true of many other agricultural commodities. Sold Grain Early, But this year there is evidence that farmers smelled a rat in the price sit- uation. They dumped their grain to | market just as soon as they could har- vest and thresh. Winter wheat farmers obtained relatively high prices—around | $1.50 & bushel—for their erop. Spring wheat farmers sent their grain to mar- ket in record-breaking volume at a time when prices were 20 cents above those now prevailing. flected a decrease in_the volume of business in Northwest States. “This decrease can be attributed largely to the abnormally early move- ment of the grain crop this year, which Butter—One-pound grints, tub, 41a42'5; store packed, 30. zlelected, ng, 35a 55a56; current’ rece) 505! Poultry, alive—Turke: young, 37: old toms, 35; Spring chickens, 27a28; medium, Leghorns, 23a24; fo 18; ducks, 15a20; ke old, 30. Dressed—Turkeys, you: 432 45; old, 39a40; Spring chickens, large, 34a35; medium, 33a34: broilers, 35a36; roosters, 24a25; ducks, 29a30; keats, 7088 clg . 50858, Meats—Beef, 20a22; veal, 24a28; lamb, 26a2 rk loins, 23a26; fresh hams, 2222 resh shoulders, 20a23; smoked hams, 25a26; smoked shoulders, 18a20 bacon, 28; lard, in bulk, 14; in pacl ages, 15. Live stock—Calves, 1415a15; lambs, 1212a13. Weather conditions throughout most of the week were unfavorable for heavy “trading, dealers saying it not only less- ened appetites of consumers, but it also made trading so uncomfortable that buyers falled to materialize in the usual large numbers. “It even lessensd the number of buy- ers of certain commodities to be ship- ped back home by parcel post,” eom- mented a dealer. “Usually at this season,” he added, ‘“many persons make purchases of fruits and delicacies to parcel post home, but there has been a noticeable absence of such persons in market this season.” Fruits, vegetables and other com- modities siutable for the Thanksgiving holiday season continued in heavy sup- play throughout the week, commission merchants having attractive supplies from various sections of the country. ‘Tree-ripened and tree-colored grape- fruit from Florida shippers appeared in the local market the past few days, and dealers say they are much sweeter and much bstter flavored than the fruit , young, 40a6! “Just about as sweet as oranges commented & dealer, “requiring no sugar to make them palatable.” Other Fruit Receipis. Grapefruit sold at $§3 and $4 a crate, according to size and quality. Florida oranges were plentiful yesterday at $350 and 34 a crate, the California stock selling from $3 to $7.50. Kumquats, a Florida product, reached the market the past week, Th:y came crated in quart containers, but were in slcw demand. Dealers quoted them at 15 cents a quart and because of the slow sale expressed a willingness to sell them at a lower price. California persimmons, a show fruit, extra large, came in plentiful supplies all the week, finding slow sale at $1.50 for small and $3 for large crates. Few Cuban pineapples also appeared on the market and were offered around $6 a crate. Small quantities of satsumas, product of Alabama, and tangerines, grown in Florida, met a light demand. Modern receipts of cranberries were reported the past few days, and dealers say there will be plentiful supplies for the ocoming holiday season. Early Blacks, top quality, sold around $3.50 for one-quarter-barrel orates, late Blacks selling as high as $4.50. There is no likelthood of a shortage in receipts of celery or other vegetables for the apprcaching holiday season, cel- ery always being in demand when turkey dinners are in- order. Prices, according to quality, ranged from $1.7% to 83 a crate. Displays of heavy receipts of vege- tables continued throughout the week, coming from both nearby and distant | points. Kale, spinach, turnip aprouts, | & dandelion and watercreas were received in large quantities, prices being ma- terially lower than prices a month ago. Dealers also had large quantities of artichokes, peppers, cabbage, sprouts, lettuce, onions, potatoes and California tomatoes. Cucumber receipts were only moderately heavy, while light receipts of Florida squash were reported. Fairly large quantities of mushrooms were received during the week, faney stock selling as high as $1.38 for 3- pound baskets. Some not top quality sold as low as 75 cents. Brussels had carried the September volume of individual debits to the highest level on record.” the Federal Reserve Bank in the ninth district Ng)fitd today. “Farm income from cash crops and hogs marketed during October in this district was 45 per cent smaller than the income from these sources in Oc- tober last year. Prices of wheat, oats, rye, flax, eggs, potatoes, butcher steers and hogs were higher in October than & year ago, while me of corn, barley, hens, butter, fluid milk, feeder steers, veal calves and lambs were lower.” Likewise in the present speculative price collapse, the Government is be- ing called upon to bear part of the burden. The farmer who joins a recog- nized co-operative organization is as- sured by the Government of a return several cents above the price he re- ceived last yes It is evident that the guarantee of base price of $1.18 is going to cost the farm board some real money, provided prices do not advance materially from their present levels, be- ;:u‘u loans are being made on that sis. It is evident also that this guarantee might have & decided market influ- ence, because it makes hasty selling at a sacrifice by farmers foolish when by holding they are assured by the Federal Government of & return higher than the present market price, Statistical Position. ‘The statistical position of the grain markets is considered bearish because of the tremendous visible supply, with terminals glutted and the movement into consumptive channels relatively slow. But the record-breaking market- ing early in the season probably ac- counts for the huge supplies and at present prices grain is considered very attractive to buyers. In the Northwest dairying is becom- ing fully as important as grain growing and live stock raising. A study of the cash income of dairy farmers in Min- nesota, made by the agricultural ex- pansion division of the University of Minnesota revealed that this income totaled $4.465, for the average dairy- man in 1928. Of this amount $1,640 came from the sale of dairy product:, $1,041 from the sale of hogs, while poultry and eggs netted $414 and the sale of cows and other cattle $728. With diversification and an eve to marketing when prices look right, the Midwestern farmers appear to have weathered the present storm in much better shape than the financiers. CHICAGO LIVE STOCK MARKET CHICAGO, November 16 (#) (United States Department of Agriculture).— Cattle—Receipts, 300 head; compared A week ago heavy steers, 50 cents to 1.00 lower; excessive supply of heavies, many of them overfat, sold at decid- edly new low levels for the year; bull kinds at 11.25a13.25; practi top, 14.00; extreme top, vies, 15.00; some yearlings changed little, but all others lost 50 cents, in instances 75 cents; ex- treme top yearlings, 1590; several loads, 15.00a15.75; heifer yearlings up 15.10; she stock very uneven, fat bout 25 cents lower; low cutters Western grassers in run; stockers and feeders about 25 to 50 cents lowe: heavy feeders showing most deelin best H&;fl stockers, 12.00; feeders, up 0 1} % bulk, stockers and feeders, heep—Receipts, -6.000 head: run in- cluding 1,275 clipped lambs to arrive: about 10 loads of feeders and few Westerners; i market a shade 82-85-pound lambs, by the week 43 doubles from feeding stations; 9,750 di- rect: light runs dhctm’ late advance; compared a week ago fat lambs fully 25 cents up: fat ewes strong: top prices; fat. native lambs, 13.00; fed Westerns, 13.75; fat ewes, bulk prices: na- lambs, 12.25212.75; fed Wssterns. A new reservoir at Montreal, Canada, will cost $2,300,000. yearlings, 9.0010.00; fi ewes, 5.2525.65; f¢ lambs, strong: moxmu. 12.00a12.50; choice, ll.’fl | | i | As a result there now is being re- | equal to what she owes for INEW YORK SECURE AS BANKING CENTER International Bank Is Not Expected to Affect U. S. Financial Status. BY JOHN F. SINCLAIR. Special Dispatch to The Star. NEW YORK, November 16.—The banking and financial center of the world will not move from New York, either now or in the future, as a direct result of the organization of the new Bank of International Settlsments. Nor will the bank affect in any im- portant way the course of world trade or commerce This much, at least, is evident nqw. Much hds been said and more has been written about the position which the United States Government has taken in the matter. Some American citizens believe the Government should enter wholeheartedly in bullding ul this new bank by having the Feder: Reserve officials act for the United States. This was the plan in mind at the beginning Stimson’s Challenge. But Secretary of State Stimson chal- lenged this position in most emphatic language. After saying that the United States had no interest in German repa- rations, other than those small sums which were received in settlement of cleims judicially ascertained by the Mixed Claims Commisison (United States and Germany), and for the ex- pense of the occupation army, which both the allies and Germany asked for, the Secretary of State made this state- ment: “The Government of the United States will not permit any officials of the Federal Reserve system, either themselves to serve or select American representatives as members of the pro- posed international bank.” The Government of the United States, therefore, is out of it. So is the power- ful Federal Reserve system. is 8 hard blow for those who believe that this pew international bank is neces- sary for stabilizing reparations and world credit conditions. After all, for what is this new bank created? Its official spokesmen have stated that it l"l-lnfl;elu; pflmlrllyu:m\u urpose of giving temporary ce Yn transferring German annuities to the countries receiving the same, and, sec- ond, to allow the investment in German reichsmarks, currently , 4o the account of the allies am g the f Gist of Agreement. it baldly, Germany has ,oogam.m gold mi Putting nually to the allles. was to under the Dawes plan. The director neral of reparations, & position now led by & young American, 8. Parker Gilbert, was then created as the col- lection agency for the allies within Germany. The Young plan, which succeeded the Dawes plan, was signed by Belgium, France, Great Britain, Italy, Japan and Germany on June 7. plan provided for a Bank of International Settlement, to take over the duties of the repara- rations commission. Naturally, the po. sition of director general is abolished. Two questions arise connection with the bank and its possible effect on the United States: First, will the bank be able to help Germany pay any more reparations than she could without if? | Second, will the bank take the wo:ld | leadership in financial matters from the | Peder: rve system and the Bank of England? Answering the first question, Ger- many will be able to pay as much in reparations as her total trade balance plus her outside borrow! come to. No more. No international bank can affect the problem. The same rules for settling international balances will con- tinue as they did before this new bank was created. Sound Settlement Needed. Lewis G. McFadden, chairman of the House of Representatives banking and currency committee, takes this ition. He says that the international bank “is ‘an intellectual funk hole,’ to mgl':{ the words of a well informed economist, for the commission did not want to feel immediately the high ex- plosives sure to . > off when the real problem of reparations is af fog Mr. McFadden continues: “Given s {sound reparations’ settlement, it should ey v elp either or_her creditors.” e But the international bank will saon | be set up in the beautiful City of mmi | Switzeriand. It will have & capital of $100,000,000, governors, com) the governors of the six central of Great Britain, Belgium, France, Ger- many, Italy and Japan. In addition it will have iwo governors chosen by the fixed governors from the United States, and six more governors, each selscted by one of the ':t nlx“tmm his country, as & representative local busin 1n§|‘utrles. 1 business and ine other governors from other - tries in the world can be added be’m::. directors. The chairman of the board, the most powerful figure in the organ- | ization, is to be elected by the governors for a term of years and it is e: ted that an American, probably Melvin A. Traylor, now president of the First Na- tional Bank of Chicago, may be chosen. Important Point Settled. Already one ticklish point has been disposed of. The new bnk hn” not to issue notes or create chedif that it shall merely act to recel ambllln, transfer and distribute repara. lons. t, and v So it will be a clearing house reparation payments, notn‘ln mum‘: tional bank of issue, and not s competi- tor ]:t the great central banks of the world. But to return to the first S:Ifin A nation—and this applies to in this nlzumon—en?p the g exceeds her buyi Temporarily, she ean buys more than she sells, But over long period, no nation can go on buy: ing more goods from the world than she sells to the world. This problem Germany is facing now. If her total exports, both visible and invisible, for the year amounted, let us say, to $1,000,- 000,000, and her imports amounted, let us say, to $1,000,000,000, Germany :"ould have no money to pay repara- ions. Then she could pay her: reparatio and keep from defaulting only by bor- rowing from other nations an amount the year. it should be noted ce the close of the ¥'s exports even equaled By way of passing, that in no vear sin war has German, her imports. Carries On by Borrowing. _She has ecarried on only by borrow- iag. But_this condition eannot g0 on forever. When bankers refuse to loan more money then her problem becomes acute, The internationa: wank eannot meet this problem in any way. Most observers believe that Germany will not be able to meet the re] pay- ments laid down by the plan. Answering the second question: The International Bank already has severed aotice on the world that it will not be A superbank—at least, not for the pres- Without power to issue currency or to create new credite, it becomes merely a mechanical organization, cre- ated to handle more e fously the transfer of the sums m Germany has agreed to pay. It is also true, as . T. E. Gregory of the London School of Economics observed while in the United States this Fall, “without the central banks being willing to give up some of their powers, the new Inter- natienal Bank eannot hope to major importanee in world business. (Copyright. 1920. by North American News- ver Allianee.) ent.