Evening Star Newspaper, February 4, 1930, Page 14

- A—14 ¥¥¥ FINANCIAL. ABSENTEE CONTROL ' OF BANKS DECRIED Financial Leader Sees Harm | to ‘Business-in Spread of Merger Plan. Special Dispatch to The Star. NEW YORK, February 4—The “revo- Tution” in American banking is a trend the effect of which is absentee control, and if allowed to spread throughout the Nation can inflict serious on business, according to George W. Davi- son, resident of the Central Hanover Bank & Trust Co,, in the current issue of Printers’ Ink Monthly. “Banking is a service, and since it is & service of credit, it is a service of a kind highly unique,” Mr. Davison states. “It would seem that banks deal in money, but in his heart every banker knows that banks deal in character, and character is not merely local. It is individual. It is the character, com- positely and separately considered, of every banker’s customers—customers whom he knows by sight and by name and by reputation. Sentiment in Banking. “I believe that America's banking sys- tem, evolved through the years since it began, has helped our Nation to its place in the economic sun. The history of our banking is a story of epic achieve- ment in industrial co-operation. But achievement by whom and by what? By individual bankers and by individual banks. “What is the local business man to do if. when he goes to the bank, he must talk with a manager who regards credit as a commodity, who is allowed to exer- cise no discretion of his own and whose decisions are formulated for him—and formulated in advance—by a manage- ment that, hundreds of miles away, must draw its guidance from the cri- . terion of credit ratings, or what is more likely, from the criterion of collateral values? “American banking can continue to serve the American business man just as it has served his needs and helped him in the past, but not by absentee control, not by superorganization, not by piling power on power. Virtue in banking is not a matter of size. “Ou: national financial machine is a & mechanism that, thanks to the Fed- eral Reserve System, is as strong, para- doxical as the statement may sound, as its strongest link “As to the quality of the service, as to its flexibility and its possibilities’ for adaptation to local and individual needs —and national needs as well—there van be no question that the independent local banks in the towns and cities are in a better position to serve their com- munities and the country at large than would be any chain or group whose con- trol is centralized. Concentration of Wealth. “The concentration of money power, of credit power, in any center of our land or in any-group of centers vio- lates our American creed. Not only is such a concentration un-American, it is anti-social. Because it would serve | to ref business and hamper business initiative it is uneconomic. “T submit that we have in America ' today an efficient banking system, a system structually adapted to encou: age and foster the highest degree of in- itiative and individual enterprise on the part of business men, but it is a system that, with independence and individ- ualism as a desideratum, can be devel- oped and strengthened. It can be de- veloped and strengthened by strengih- ening the independent, individual banks. “Long - ago banks throughout the TUnited States began establishing corre- spondent relationships with banks in the principal cities—relationships by Which the smaller banks deposited por- tions of their funds in the larger banks and looked upon the larger banks as consultants in all manner of banking roblems and as co-partners in solv- g those problems. “Correspondent banking involves no concentration, no shifting of control. ‘The independent bank remains inde- pendent, operated by its own directors and officers and owned by its own stockholders. The smaller bank’s corre- spondent banks in the large cities are correspondents of their own choosing. Between the smaller bank and its larger correspondents there has grown up through the years a bond of confidence and co-operation. Correspondent Banks. “Let the larger banks extend and im- grove the service they render to their - Smaller correspondents. Let the larger banks unite in group consideration of the many ways in which they can be Delpful. T know that they will find the smaller banks highly receptive. I know. for instance, that they will find a ma- Jjority of them in favor of correspond- ent-bank _conventions—conventions in which each of the larger banks can call 1ts correspondents together for the study ©f mutual problems.” Yoitlrs NCOME TAX — Failure to receive a form does not re- | lieve a taxpayer of his obligation to fiie an income tax return and pay his in- come tax within the period prescribed— on or before March 15, 1930, if the re- turn is filed on the calendar-year basis, as is true with most individuals. Forms may be obtained upon request, written or personal, from the offices of collectors and deputy collectors of internal re! enue. The tax may be paid in full or in quarterly instaliments, due on or before March 15, June 15, September 15 and December 15. Persons whose net income for 1929 was derived chiefly from salary or ‘wages and was not in excess of $5,000 | should make their returns on Form | 1040A. Persons whose net income was derived from a business or profession, including farming, or from the sale or rent of property, although the amount was less than $5000, are required to use the larger Form 1040. The use of Form 1040 also is required in the cass where the net income was in excess of $5,000, regardless of whether from sal- ary. business, profession or other sources. ‘The filing period ends at midnight March 15, 1930. The returns should be filed with the collector of internal rev- enue for the district in which the tax- payer lives or has his principal place of business. SHOBT-TE;H SECURITIES. (Reporte¢ by J. & W. Seligman & Co.) hicago Rock Ghile Copper Co 80 194700 C acking Co. 5138 Fdison EL 11 Boston 4%s 1930 Y. Chi. & St. Phillips Pet. Co. 5¥4s 19 Pure Ofl Corp 5%s 19 ‘Shel: Union Oil Co. 5s_15: b 4 Sinciair Crude Oil Co. 5l 938 97 Standard Oll N, Jersey 82 1946, 1013 St. L. Ir Mt. & So. Ry. Bs 1931 99% 8t L Southvestern Ry. 4s 1033 875 it & Co. 58 5 o of Calif. 5s 1935 . 99% 5! 93% 48 :9”" % A 103% Wheeling Steel Corp. § ot Wheeling Steel Corp et sukidy Warsaw, Poland, will establish bus s vices, 79% 251 234 221% Phila Company (17). 110 121% 116 ‘Pitts& W Va (6) THE EVENING STAR, WASHINGTON, D. C NEW YORK STOCK EXCHANGE Recelved by Pritate Wire Direct to The Star Office. (Continued From Page 13.) Stock and Dividend Rate. % 38% LouG & 128 Louls & Nas 32% Ludlum Steel (2) 67 McCrory B (2). 91 McCrory pf (6) 35 McGraw-Hill (2) 14% MclIntyre Porc M(1). 82 McKesson & Rob (2) 44Y% McKes & Rb pf(3%). % 70 Mack Trucks (6). 159% 137% Macy (RH) & Co(n2) 12% 12 Madison SqG (13%). 45 Magma Copper (5) 25% Man Elec Supply . 30% Man Elev mod (d. 39% Marlin-Rockwl] t4% 20% Marmon Motor (2 37% Mathieson Alkili (2 49 May Dept Strs (n2). 16% Maytag Co (12) 76 Maytag Co 1st pf(6). 29 Melville Shoe (2). ... 154 Mengel Company (2) 1;1« Mexican Seaboard. .. ~Prev. 1930.~ s Miami Copper (4) Mid-Coutinent P (2). Midl Stl Prd pf 14. % Miller Rubber. . . 103 Mil El R&L pf (). 121 Minn Moline Pwr. .. 1% Minn & St Louis. 33 MStP&SSM. 54 MStP&SSM114). 467% Mo Kan & Texas. 103 Mo Kan & Tex pf( 87 Missouri Pacific 134 Missouri Pac pf (5). 361 Mohawk C Mills (3). 38% Montgomry Wrd (3) 49 ' Monsanto Ch (g1%). 3% Moon Motors. ..... . 584 Morrell J (3.60). . 82 Morris & Essex (3%} 1% Mother Lode (40c). . 41 Motor Meter G & E. . 26% Motor Wheel (3). 12% Mullins Mfg........ 576 Mullins Mfg pf (7).. 46 Munsingwear (14). . 18 MurrayCor(b2%stk. Myer(FE)& Bro (2). 51% Nash Motors (6) 18% Nat Acme (1%) 11 Natl Air Trans...... 9% Natl Bella Hess (31) Natl Biscuit (7). NatBisn (p2.80).. .. Nat Cash Reg,A(14). 608 61 Nat Distillers (2)... tl Lead (5). tl Pwr & Lt (1) tl Radiator, 4 Natl Radiator pf. 70% Natl Surety (5)... 35% Nat Tea Co (2) 27% Nevada Copper 40 Newton Steel (3). N Y Central (8). 130 NYChi&StL (6 180 N Y & Harlem (5)... 80s 300 32 114 108% NY NH & Hart (6).. 122 NYNH&HDpt(7).. 1 124 13% N Y Ont & West..... 23 1% N Y Railways pf. 1 g 100 N Y Steam pf (6) . 80s 101 111% N Y Steam 1st pf (7) 20s 112 19! 3 245 16% Norfolk Southern... 2 226 Norfolk&Westn(10). 83 Norfolk&Wstn pf(4) 90s 93% North Am(b10%stk) 51 North Amptf (3).... 85% Northern Central (4) 10s 45 Nor Ger Lloyd(3.41). 1 51 84% Northern Pac (5) 6 85 82% North Pacet (5). 6 9% Ol Well Supply. O1l Well Sup pf (7) 3% Oliver Farm Equip. . 31% Olivr Fr Eq ev pt(3). % 2% Omnibus Corp. 300% 280 Otis Elevator (6) 30 Otis Stee] (234) 50 Outlet Co (4).. 17% Pacific Coast 1st pf. 52% Paclfic Gas & E (2).. 72 Pacific Lighting (3). 10s 208 11 56 17 55 15% Packard Motor (1). 52 Pan-Am Petroleum 50% Pan-Am Pete B. . 47% Panhandle P & R pf. 48% Paramount-F-L (3). 214 Park Utah....... 17% Parmelee Trans 1%.. 2% Pathe Exchange 5 Pathe Exchange A. .. 28Y% Patino Mines (3.89) 6% Peerless Motor Car 26% Penick & Ford (1). 63% Penney (JC) (2%). 93% Pen (JC)pfA(6)... 2 95 6% Penn Dixle Cement.. 4 7 72% Pennsylvania RR(4) 146 80 230 People’s Gas Chi (8). 4 246 43% 38% Phelps Dodge (3).... 2 40 1 228 50% Phila Co 6% pf (3).. 1 11% Phila& Read C&1.. 3 Phillips-Jones pf (7) 10s 8% Philip Morris (1).... 2 35 31% Phillips Petrm (n2), 26 21% Pierce-Arrow A 1% 1 PlerceOil.... o4 il 37% 34 Pillsbury Flour (2). 50% 45 Pirelli Co A (2.88). 103 Pittsburgh Coal p! 3 53 1 47 52% 16% 1% 14 72 10 21% 20% Pittston Compa 27% Poor & Co (B) (2). 58 Pipe L (15) 3 7% Pressed Steel Car.... 28 52 Pressed St1Cpf (7).. 1 8% Prod & Refiners. . 2 52% Proc & Gamble (2) Prophylactic Br(2). 81% Public Serv, NJ 3.40. 92% Pub Sve NJ pf (5). 106% Pub Sve NJ pf (6). 143 Pub Sve NJ pt (8). 82% Pullman Corp (4) 6 Punta Alegre Sugar. 22 Pure Ol (1%). 77 Purity Bakeries (4). 34% Radio Corp. . 53% Radio pt A (3%) 68 Radio pf B (5). 2 19 Radio-Keith-Orph A. 142 33 Raybestos Man 2.60 121 Reading (4). 47 Reading 1st pf (2) 44% Real Silk (5). 3% Reis (R) & Co. 25% Rem Rand (50c). 95 Reming-Rnd 2d (8). 10% Reo Motor Car (.80). 4 72% Repub Ir & Steel (4). 6 107 Rep Ir & Stl pf (7) 4 Reynolds Spring. 72% Reynolds Tob A (3). 49% Reynolds Tob B (3). 22% Richfleld O1l (2). 18% Rio Grande Ofl (2). . 44% Ritter Dent Mfg (13) 37% Rossia Inc (2.20).... 52% Royal Dutch (a3.20), 111% Safeway Stores(es). 96 Safeway pt (6) Prairi 5 10s 43 b4% 122% 9674, 109 55% 10s 4815 St Joseph Lead (13 112 107% St L-San Fran (8). 94 92 St L-San Fran pf( 31% 24% Savage Arms (2) 13% 4% Schulte Retall St Sales— Add 00. High. Low. 7 4 % 171 66% 6 " 52% 8 33n 2 23% 5 36 64 34y - 40s 100 11% T4% ~Prev. 1930.— High. Low. Prev, Close. Close. 404 182 41% 40 135 104 30% 48% 23% 85 132 33 92 62 32 25 33 12 38 77 19 16 70 1827 139 300 10 215 56 % 10 101 25 % 60 Y Y% 141 U S Ste % % 5% Virgini 264 Virgini 8 65 51 ol 83 v Y% 26 % Y% 132 i 46 501 Wi 99 105% 190 7% Whi 27 88 78 10:30 A M., 1 117% S 967 105% Safeway Strs pt (7). 10s 109 5 B6% payments base: 3 10 10 | of stockholders. 8tock and Dividend Ra 9% Seaboard Air L 93, Seagrave (e1.20) 82145 Sears Roebuck (3 915 Second NatlInV..... 1 214 Seneca Copper. 3 7t Servel Inc. .. . 2214 Sharon Steel H (2).. 36% Shattuck(FG)(t1%) % Shell Unfon (1.40)... Stmmons Co (£3) . 7 Simms Pet (1.60).... 14 Sinclair Con Oil (2).. % Skelly Ofl (2)... 23% Snider Packing pf. 951% Solvay Am Inpf5% 24% So Por Rico Sug (2). 56% Southern Cal Ed (2). 119% Southern Pacific (6). 1 Southern Rwy (8)... Spalding(AG) (3)... 19% Spang-Chalfant. Spang-Chalfnt p! 134 Sparks Withngtn(1). 20% Spencer Kelg (1.60). 15 Spicer Mfg. 5 39% Spicer Mfg pf (3). Splegel-May-St (3).. 26% Stand Brands (1%). 117'¢ Std Brands pf (7)... 1093 Stand Gas & El (3%) 6413 Stand G & Epf (4).. Stand O of Cal (2%4). Stand OII N J (12).. Stand Ofl N Y (1.60). 1% Stand Plate Glass... 1 Stanley Co of Amer. 100s Starratt (L S) Co(2). 2 10% SterlingSecA...... 8 Sterling Sec p£(1.20) 1 36% Sterling Sec cv pf(3) Stewart-War (h3%). 6 Stone & Webster (2). 40% Studebaker Co (5). % Submarine Boat... 102% Sun Oil pf (6) 6 Superior Oil. 20 Superior Steel....... 815 Sweets of Amer (1)., 2% Symington. . 814 Symington (A) 15% Telauto Cp (11.25)..: 1,944,400 Dividend rates as given in the above table are d on the la Unit of trading less than 100 shares. stock. h Plus in stock. i Plus m Plus %% in stock. Sales— Prev Add 00. High. Low. Close. Close. 3 10% 104 10% 10% o ) 48 26 3 39 18 13 18 38 53% Texas Corp (3)..cuvs 5 13% Texas Pac Land Tr. Thatcher Mfg (1.60). 40% Thatcher pf (3.60)... 9 Third Avenue 11% Thompson S 11% Tide Water Asso 60c. 14' Timken Det Ax 180 70% Timken Roller (3). 2% Tobacco Products. 8% Transcontinental Ofl Transue & W (1), 30% Trico Prod (2%). 33% Truscon Stl (g1.20) 24% TwinCity Rp T (4).. Twin City RT pf(7). 97% Und-Ell-Fisher (5).. Underw-E1-Fs pf(7). Union Bag & Paper. . 76 Union Carbide (2.60) 43% Union Oll of Cal (32) Union Pacific (10)... 43'% Utd Aircraft& Trans. Utd Afreraft&T pf 3. Utd Biscult (1.60)... United Cigar 30% Utd Corporation. 46% Utd Corp pf (3) 5% Utd Dyewood. United Elec Coal. United Fruit (4).... % 854 85% § 31% Utd Gas & Imp(1.20) Unit Piece Dye W (2) 4% United Stores A 15% U S Distributing. 18% U S & Foreign Secur. 94% U S Frelght (3)..... 110% U S Ind Alcohol (17). 16% U S Leather A....... 181 U S Plpe & Fdry (2). 18 US Plpe&¥ 2d pf 1.20 U S Realty (5) 214 U S Rubber. 47% U 8 Rubber 1 33% U S Smelt Ref (3%). 5214 U S Smelt Ref pf 3% 166 U S Steel (7). t (7) P! 32% Univ Leaf Tob (3 30 Univ Pict 1st pf(8. 2% Univ Pipe & Rad.... 3814 Util Pwr&Lt A (e2). 4 Vadsco Sales Corp. 49% Vanadium (t4). 87% Vick Chemical ( 2 60 Vulcan Detinning, Wabash....... Wabash pt, A (5).... 24% Waldorf Systm (1%) Walworth Co (2) 21% Ward Baking A. 4% Ward Baking B. 38% Warner Bros Plc (4). 36%s War Bros P pf (2.20) 165% Warner-Quinlan (2). Warren Br Warren Bre 5% Webster-Eisenlohr. . 22% Wess Oil & Snow (2). O&Snpt (4).. West Penn El A (7). 97% West Penn El pf (6). West Penn El pf (7). 104% West Penn Pw pf(6) 113% West Penn Pw ot (7) 13% Westn Dairy (B).... 24% Western Maryland. 40% Western Pacific pf. Western Union (38 43% Westngh Ald Brk(2). Westinghse E&M (5) Westhse E&M pf (5) 29% Weston El Ins (1)... hit White Motors (2)... 36% White Rock M S (14) Sewing Mach. 27% White Sw Mch pt (4) Wilcox Rich (A) 2%. 19% Wilcox Rich, B (2).. 7% Willys-Over (1.20).. 67% Willys-Over pf (7). 3% Wilson & Co. . 7% Wilson & Co A 64% Woolworth (2.40) 67% Worthington Pump Worth Pump A (7) Worth Pump B (6). 12% Yellow Truck & C 36% Young Spring (3) 108 Young Sheet & T (5). 5% Zenith Radlo........ RIGHTS EXPIRE % Am R Mill 1% Balto & Ohio.Mar 11 1% Col Carbon..Mar 11 % ErleRR.. Sales of Stocks on New York Exchai .June 15 Feb 28 374,000 12:00 Noon., 2:10 P.M. at guarterly or haif exi 1 Plus 9% In stock. a Paid in stock. d Payable when earned. 10% " in stock. g Plus 6% in % in stock. k Pius 3% in stuck. nPlus 5% in stock. p Sublect to approvai Washington Ticker BY CLINTON COFFIN, Associated Press Pinancial Writer. A persisting fall in the wholesale price levels of staple commodities, which has now reduced the table of market values down to a point about 5 per cent below that which prevailed at this time iast year, is a matter currently giving cause for interest and concern among economic observers and business ad- visers alike. This downward slide of basic prices originated early last year with a group of tropical commodities of great importance to American con- sumption, rubber, raw sugar, coffee and cocoa being included in the list of things which cheapened with relative suddenness. “To the extent that products in that class led the price decline the American economic situation has probably been bettered,” Julius H. Barnes, chairman of President Hoover’s business survey conference, commented. “These tropical raw materials .which took the brunt of | thi early price depression are mostly items which this country imports in huge quantities, and the fact that the United States can get its supplies for a smaller outlay of money can hardly be a mat- ter for dissatisfaction.” ‘ However, the pressure on wholesale prices in Winter months has obviously been traveling clear along the whole gamut of products. Finished steel prod- ucts have averaged about 2 per cent less in price than a year ago; the entire group of non-ferrous metals, barring copper, for which an export price of 18 cents per pound been held for months, has slipped downward notably. Tin and silver on wholesale markets are selling at nearly the low prices of his- | tory, while zinc and lead quotations are at figures much below the average of the last 20 years. Likewise bituminous coal and petro- | 1eum, products in which the American output dominates the world picture, | have been scraping bottom for weeks. Cotton, wheat and live stock, since the turn of the year and in spite of Federal Farm Board, have weakened P~ tibly. Though manufactured articles in eneral have not been so seriously af- lected, there is scarcely an item on the list of important raw materials which has not yielded. Opinions differ markedly as to what is price movement p es and the realization of the situation is only now becoming general. It is frequently pointed out that the most recent ex- perience the business world has had | with declining prices for basic commod- ities dates to 1920. Adoption of aid extended the producers through the :_“” hand-to-mouth buying methods was general after the onset of price reces- slon and the volume of trade continued to mount through succeeding years. Most people feel that American produc- tion and distribution remain geared to work well through a period of declining prices and there is another set of opin- ions which looks for an upward turn in the price levels this Spring. DIVIDENDS DECLARED. NEW YORK, February 4 (#).— Regular Pe- Pay- Company. Rate. riod. able. Bankers & Sh Inc.$1.50 Q Feb. 5 Detroit Edi; Q Apr. 15 Fed Pow & Feb. 1 A Mar, 1 e !%A eh. 28 doc y 1 Q ar. 1 Feb. § Feb. 5 Hidrs. of record. TREASURY CERTIFICATES. (Reporte¢ by J & W. Seligman & Co.) Rate—Maturity. Yot 3128 B rl i ok By 313 Dec. 1, [now in trouble. If the public are al- | of copper—International Nickel and : | field of national commodity marketing TUESDAY, FEBRUARY 4, 1930. TORONTO EXCHANGE|BANK BORROWINS | ON BETTER BASIS Standard Stock and Mining Agency Leads World as Metal Mart. BY J. F. SINCLAIR. Special Dispatch to The Star. TORONTO, Ontario, February 4.— Ten years ago one could have pur- chased a seat on the Standard Ex-| change, Toronto, for less than $1,000, The last sale was for $95,000, but that was before some of its léading members i were indicted last week. The Standard Stock and Mining Ex- change of Toronto, as it is officially called, is the leading mining exchange in the world. In the hectic days two | years_ago it was competing with the | New York Stock Exchange in the num- | ber of shares which were being handied daily—oftentimes as many as 4,000,000. In 1925 87,847,000 shares were traded in. Last year the number reached 279,488,000 shares. Translated into dollars, its sales increased from $43.- | 369,000 in 1925 to $707,000,000 four | years later. }” Many in Toronto believe it to be |a “close” corporation. It has but 51 | memberships ~altogether, and the 5 firms which were indicted last week for conspiracy by the Ontario govern- ment own 15 of the seats. It is also thought that indirectly they control another 10 or more. “The big five,” who were indicted for bucket shop methods, did very much the largest percentage of the total busi- ness on the exchange. | The government atcion has de- moralized business, and mining shares at_the moment are at a standstill. ‘W. H. Price, attorney general of On- tario, has stated that the worst is over and that from now on conditions will become more substantial. It is reported that much of the %rouble has been due to the inability | of the public to “sell stock short.” Some say that more than $100,000,000 of short sales will show up as the result of the investigation of “the big five” lowed to buy stock, but have much dif- ficulty in selling it short, there is a vast amount of bucketing possible. 2 Fred J. Crawford, president of the exchange, is giving the fullest co-op- eration to the government and work- ing with it in develoring additional safeguards, which will prevent such an occurrence in the future. Copper Situation. Business leaders in Canada are watch- ing developments in the copper situa- tion with more than passing interest. When it was announced last week that the Anaconda Copper Co. had closed its Leonard mine in the Butte, Mont., dis- trict, such news received front page mention in the larger cities. Why? Because Canada is moving to the front as a great producer of copper. Last year the country produced about 242,400,000 pounds of copper valued at $43,362,000. This year, if conditions re- main stable, its total copper production should exceed 300,000,000 pounds. Should copper prices remain as they are at present, around 18 cents per pound, Canada will be able to make a big showing. Her two largest producers | Noranda—have such rich deposits that both could earn very substantial profits at 17 cents or even at 16 cents per pound. And they could earn their divi- dends even with copper at 15 cents per pound. Canada is ready for any copper en;ergency»even if it means a drop in price. ; Canadian Wheat Pool. ‘The Canadian wheat pool is having | its own trying times these days. In the it is one of the greatest experiments ever attempted. Up to this time—unlike Brazil in its coffee experiment—it has not had the | backing of the government. It is really a co-operative and not a governmental endeavor. The wheat carry-over of 1928 was | 48,000,000 bushels. By December, 1929, this carry-over was still in the hands of the pc.1and it had incurred a carrying charge of 28 cents per pound or roughly about $13,500,000. Now the 1929 wheat crop was short in Canada. Also in Argentine and Aus- tralia. It looked like a good time to hold wheat. The world needed it and apoarently there was not much of it. It was a clear case of speculating for the “rise.” But the wheat carry-over in Argen- tina, United States and Canada was the largest on record. This fact was really underestimated. Along with this condition Europe be- gan to agitate for home-growing wheat. In scores of big shops in England ap- pears this sign: “No American wheat | used here.” Other European countries are pushing their own substitutes if they have no wheat to market. On August 1 wheat closed on the Winnipeg market at $1.73. On August 30 it was down to $1.52. The last of September saw it close at $1.43. No- vember closed at $1.41. Still Canada holds on. It has dimin- ished her business; it has hurt her trade and it has caused her money to be at a discount in the United States. Her bankers, who have loaned about $1 a bushel, are anxious to clear the debt. A new crop is in the making. It costs money to carry over wheat. Can they or can they not, work it off at a profit? The Canadian pool handles a little over 50 per cent of the wheat crop. No one today can tell for a certainty just what the result will be. “I understand that the governments of the Western provinces are back of the wheat pool, and this will add con- siderable stability to the situation,” said Sir John Aird to me in discussing this situation. “ Secs Business Advance, | Sir John Aird, president of the Ca- nadian Bank of Commerce, an $800,~ 000,000 institution, also told me condi- tions were clearing up in Canada pre- paratory to a real business advance. “I do not believe that Canada was as much affected by the stock market crash in November last as was business |in the United States,” Sir John said. | “We have a diversification here in our business life divided roughly into three parts: One is the purely farming indus- try, which has been for so long our big- gest; the s:cond is the development of our natural resources, including mining and water power, and the third is the rapid expansion of our manufacturing enterprises. “All three are showing a remarkable development over the last decade, but especially is this true in the develop- ment of our mining and manufa turing. While the United States has been at work a long time and has de- veloped much of her natural resources, Canada has only begun. Yes, this is still a young man’s country.” The Canadian Bank of Commerce is building a new head office in Toronto to cost about $5,000,000 and it will be one of the show places of this aggressive city of 800,000 people. Canada’s navy consists of three 8,000~ ton trawlers, all of which are now frozen in for the Winter. So Canada’s expense bill for its navy upkeep is not a source of worry to business. “Oanada’s delegation to the Naval Conference in London is larger than the personnel of our entire Navy,” com- mented the Right Hon. Arthur Meighen, 11 review of credit and business by the DROP IS REPORTED New York Institutions Cut Total to Smallest in Several Years. Special Dispatch to The Star. NEW YORK, February 4—Reduction of member bank Indebtedness to the | smallest_amount in two years was the principal credit development of the past month, according to the February Federal Reserve agent of the Federal Reserve Bank of New York. The av- erage borrowings of New York City banks from the local Reserve bank, the review says, were, in fact, during the last two weeks in January the small- est in several years, and on two day January 14 and January 30—all the larger New York City banks were en- tirely out of debt at the Reserve bank for the first time since November, 1924, Reduction Began Last Year, “In the latter part of 1929 the re- view _continues, “some reduction of member bank indebtedness had been accomplished_chiefly with funds made available by Reserve bank purchases of bills and Government securities in the open market. In January such pur- chases were discontinued, and the prin- cipal factor in the reduced dependence of member banks on the Reserve banks was the seasonal return of currency from circulation to the commerciak banks and the redepositing of this cur- rency at the Reserve banks for credit to the reserve accounts of member bnn_‘k_;';e total - al net return of currency in this fashion between Christmas slnd January 25 amounted to over $450,000,~ 000, which was about the usual seasonal return flow. Ot this currency return between one-quarter and one-third | occurred in this district and the re- | m“:de{hm ‘pther districts. “Another factor in the repayment of | bank indebtedness was pnyn;urfher liquidation of credit in January. This liquidation was largely seasonal and | included the retirement of temporary credit extended by the banks over the year end, though there was also a sizeable reduction in security loans and a reduction as well in other loans, mostly commercial, Money Rates. “While money rates continued in January the decline begun in preceding months, this decline was perhaps less than might have been anticipated from the considerable reduction in the bor- rowing of banks in New York City There was little evidence in the money | market of any free surplus of funds. While money rates declined in Janu- ary, the review says, this decline was not so sharp as was the drop in member bank indebtedness. Normally the two developments are closely related. Fail- ure of the one to keep pace with the other is ascribed by the review to the sluggishness of movement of money rates, the financial community being unusually cautious in_its operations. =0 ous n 1is _operations. 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