Evening Star Newspaper, February 9, 1930, Page 34

C—6 [FinanciAL | THE SUNDAY ST AR, WASHINGTON, D. ¢, FEBRUARY 9, 1930—PART ONE. i« FINANCIAL ' COMMITTEE HEADS, NAMED BY WALLER Slaughter and McKee Will Arrange Program for Next Bankers’ Convention. BY EDWARD C. STONE. President Wilmer J. Waller of the District Bankers' Association yesterday announced the appointment of the chairman and vice chairman of one of the most important committees to ar- range for the June convention of the association which is to be held this year at Asheville, N. C. Laurence A. Slaughter, vice president ©f the Commercial National Bank, will act as chairman of the program com- mittee and will be assisted by Henry H. McKee, president of the National Capital Bank. The other members of the committee will be made known shortly. George O. Vass was made general convention chairman some time ago. Both these bankers have done some most valuable work for the association, and their selection for this committee will be accepted with general favor. Mr. Slaughter was chairman of the hotel committee in 1925, has also served the association as vice chairman of the program committee and in past years has served on the entertainment and transportation committees. He is thoroughly familiar with the work of the association, as well as with the banking problems which should be given the major portion of the pro- gram at the coming annual conclave. Iie has been prominent in banking circles in Washington for years and is & member of the Washington Stock Exchange. Mr. McKee was president of the Dis- trict Bankers' Association in 1913. He has been connected with National Cap- ital Bank since 1889, is a trustee of the East Washington Savings Bank, | chairman of the Washington Clearing House Association and became nation- ally known by his addresses before the American Bankers' Association on the | question of branch banking. A. L. B. Committee Is Named. ‘T. Hunton Leith, banquet chairman, and A. E. Henze, president of Wash- ington Chapter, American Institute of Banking, have announced the member- ship of the reception committee in: connection with the institute's twenty- | sixth annual dinner and entertainment to be held on Washington's birthday at the Willard. A large number of senior bankers have agreed to serve this committee which is made up as follows: Frank M. Perley, chairman; Francis G. Addison, jr.; Harlod W. Burnside, F. H. Cox, Victor B. Deyber, Charles James C. Dulin, jr.; MoGunde. Howard Moran, 3 ade, Howard Moran, John Poole, C. H. Pope, I. J. Roberts, L. A. Slaughter, James A. Soper, W. %dl(l- Bfgw!ll, v% Wfi‘il:id ‘Wilmer J. aller, George O. n and George ‘W. White. - ™ ! Busy Session on Exchange. ‘The heaviest trading of the week was reeoh rded m:ert::ywm'an Stock Ex- change yest o ing firm. Capital Traction closed the week at 887 after opening at 88 flat, on a light turnover. Mergenthaler Linotype scored another new high mark, reaching 109 and closing_at 1087. Potomac Electric Power 5 2 per cent Stock came out at 108, Washington Railway & Electric preferred moved gl "l/l‘)l’elmed and Phe‘ogles Drug tores lerred changed ds at 105. One hundred and fifty shares of Real Mortgage Estate & Guarant; ferred came out at 7. b red 2 ares of Security Saving & Commercial registering 976y, same as the last sale. Lanston Mono- type figured in the transactions for the first time in several weeks, 12 shares | E:";"}g at 115, against the last sale ! a # Bonds drew their full share of at- tention. Washington Railway & Elec- tric 4s came out at 85, 85, and 85%. Barber & Ross 615s sold at 8815. Wash- ington Gas 6s, series B, sold at 106, the series A bonds moved at 102%, while Washington Gas 55 moved at 101. Calling of the unlisted stocks showed \'eel;_\'k few quotation changes during the w on the " Collections Slow in District. Sixty-nine wholesale firms, represent- ing five leading lines, sent reports to the Federal Reserve Bank of Richmond | on their December, 1929, business. All | lines showed lower sales during the | month than in November. most of the | decreases being seasonal, but all of the five lines except shoes also showed lower sales last month in comparison with sales in December a year 3 hardware and drugs reporting declines of 16.1 per cent and 12.4 per cent, re- spectively. Total sales in the year 1929 were lower in every line for which fig- ures are available than sales in 1928, dry goods showing the greatest decline | with 5.9 per cent. : Stock figures are available for four of the five lines of trade reported upon, and three of them show seasonal re- ductions in December in comparison with stocks on hand at the end of No- vember. At the end of 1929 stocks of groceries, dry goods and hardware were smaller than those on December 31, 1928, but shoe stocks were materially larger on December 31, 1929, than on either December 31, 1928, or November 30, 1929. Collections were somewhat better in | December, 1929, than in November in | all lines except hardware, but wprpk clower than in December. 1928, in all lines except drugs, in which the per- centage of receivables collected during | the month was exactly the same as in | the previous December. | 1,104 Fewer Banks in 1929. Mergers and closings of State and na- tional banks in 1929 reduced the bank population of the United States by 1,104 | net, continuing the decimation in num- ) bers of banks which has been going on since 1922, according to the annual vey on this subject issued by the A ican Banker. | During 1929 695 State and national | banks were reported closed anl 799 more institutions gave up their icdentity in mergers. A total of 317 i ‘were chartered by various State tional authorities, and 73 cl were reported reopened. Of the 695 banks closed outirght 50 were national institutions. Of 799 banks merged only 228 Te na- tional banks. Of the 317 new banks 119 were national and 198 were State chartered. The total number of charter: rendered :n closings and merp thus indicated as 1494 and ° number of new institutions 380, mak- ing the net reduction in the numbe: of banking institutions during the year 1,104. Heard in Financial District. James A Soper, chairman of the in- stitute’s forum committee, received tole- graphic information yesterday that Dr. Birl Schultz, education director of the New York Stock Exchange, had been taken ill in Chicago and would be un- able to_appear here next Wedne:day night. He was booked to give a motion picture lecture on the Stock Exhange. at he Hotel Raleigh, the meeting now be- ing postponed until some time in March. Washington cleared $26.028,000 this | only u sur- week, against $22,890,000 last week, a (V] decrease of 13.3 from the corresponding week in 1929. Check payments continued to declin> during the week ended February 1 and were also smaller than for the corre- week of last year, according to Department of Commerce. uthorization for the Federal Reserve Bank of Cleveland to erect a building at- Pittsburgh for its branch there is given in s joint resolution favorably reported to the House by its banking comm:ittee, ‘The branch building is to cost $875,000. | i LAURENCE A. SLAUGHTE! Vice president of the Commer: b tional Bank, was appointed yesterday to take charge of one of the most im- portant committees in connection with the annual convention of the District Bankers’ Association, to be held in Asheville, N. C., in June. SENIOR SECURITIES MARKET IMPROVES Easing of Money Rates and Drop in New Financing Aid Prices. Special Dispatch to The Star. NEW YORK, February 8.— The dominant factor in the investment mar- ket during the past week was money. At the beginning of the week, money had a firm tendency, chiefly due to month-end requirements, but Tuesday and Wednesday saw an easing, while on Thursday, the action of the Bank of England and the Federal Reserve in cutting their rates down by a half of 1 per cent established a condition which enabled bonds, especially high-grade is- sues, to make definite headway. The Federal Reserve Banks in Cleveland and Chicago followed New York's example in_cutting their rates on Friday. It was the first general recovery since early in December, as one thing after another has arien to keep prices down. In December it was tax selling. In Januarv it was a flood of new issues brought out at cut prices. This week’s reduction of rates coincides with a much diminished volume of new financ- ing, and, of course, some of those Who sold out their holdings in December to show losses on their income tax returns are now buying their lines back again. This has also helped the market. Decline in Commodities. Then there is the influence of the continued decline in commodity prices. After a mild midweek display of strength, these markets saw a decline on Thursday to new low levels for the season. As long as this tendency con- tinues, bonds may be expected to gain in price and, consequently, decrease in yield. This trend is illustrated by an analysis of yields. New corporate securities showed a decrease of 54 per cent in yield dur- ing January, the average standing to- day_about 5.05 per cent. against 5.5 in December. Many of :’he new offer- ings were high-grade bonds. age of industrial bond yiclds tod: about 6.01, real estate 6.16, public utility 5.22 and railroad 4.79. Foreign bonds average around 6.17 yield as compared | to 6.71 in December. ! New flotations during the week totaled about $68,000,000. There was $8.000,000 of municipal bonds. Of the balance the most interesting issue was that of $14,000,000 Siemens and Halske participating debentures. While the face amount of the debentures is $400, the price at which they were offered was $933. The debentures are to carry a 6 per cent coupon, but the company agrees to pay, in addition, the excess over 6 per cent of the dividend rate on the company's: common stock. Since the present dividend is 14 per cent this gives the $400 face value bond a market value of well over $900, the level heing established in trading during the week as between $935 and $970. Hence the issue, while calling for $14.000.000 will actually yield something like $32,500,- 000. There was also $20,000.000 Louis- ville and Nashville bonds offered by J. P. Morgan & Co. at 941;. The issue is made up of $15,000,000 of 4155 to yield 4.375 per cent and $5,000,000 of 4s to yield 4.96 per cent. Domestic Bonds. ‘While domestic bonds have sho increased activity, and United State: Government issues closed the week at their best levels of the year, it was in the foreign department that the most consistent strength was shown, taking the week as a whole. As was the case last week, French descriptions led in activity and appreciation the 7 per cents and 712s both going to the high- est prices since issue. The 758 are not callable and even at their high of 123 offer an attractive field. while the 7s are callable at par at the rate of | $4,200,000 per annum. These are drawn by lot and the investor, if his bond were drawn during the first few vears he holds it, would find his maturity yield considerably reduced. However, this bond touched 116. Weakness continued in Australian bonds, which have been depressed for some time due to over-financing by the federal and provincial governments in incidental to the decline in wool prices and the extravagance of labor govern- ments. With the exception of the Queensland issues. Australian obliga- tions stand about 10 points below their $250,000,000 of those floated in New York outstanding. Reassuring the Australian prime and they retraced part of ground. "In addition Australia shipped 7,000,000 pounds of gold to London to build up a reserve to take care of over- seas commitments. Peruvian issues were active and a little higher in response to announce- ment that Peru will shortly pay $4,000.- 000 of a $5000,000 short term credit rranged here last year. Cuban bonds were strong with announcement of the arrangement ot an $80,000,000 credit, part of which will be used to retire $40.000,000 of outstanding public works nds. NEW BOND FINANCING. NEW YORK, February 8—New financing for States and municipalities to be offered next week will approxi- mate $40,000,000, compared with about $30,000,000 last week. One large offer- ing, for which bids will be called on Wednesday, is an $18,000,000 issue of highway bonds of the State of Arkansas. irginia will offer an issue of $5,000,000 | nighway bonds Tuesday. CI.EABIiWES OFF 22 PER CENT. Bank clearings in the United States for the week ending February 6, as re- ported to Bradstreet's Journal, aggre- gated $11,620,288,000, as against $10,- 000 in this week last year. There is here shown an increase of 15 per cent over last week, but & loss of 22.2 per cent from uwgf{ke week of 1928. this market at a time when Australia }l ¥ is going through a business depression original offering price. There are about |} 104,685,000 last week and $14,939,896,- | ti e ———— LOWER BANK RATES - TOASSIST TRADE i Reduction in Rediscounts Is: Expected to Act as Spur to Industry. BY J. C. ROYLE. { _Further reduction of the rediscount rates ‘of the Federal Reserve Banks of New York and Chicago is not to be ex- | pected for two or three months at least. ! It is likely that all the other Reservc banks will come to 4 per cent and that they, in turn, will maintain that rate until warm weather comes. These facts have become apparent in Government financial circles. It is felt that the re- duction of the New York and Chicago rate to 4 per cent, followed by drops | to 4'; per cent by all others except St | Louis was sufficient to fulfill the pur- | pose of the Federal Reserve Board, while | a further reduction might again set up conditions similar to those which ex- isted before the stock market break. ‘The New York reduction was not un- expected, but it was essential that it be not made before London reduced its rate or there would have been a perfect stream of gold crossing the] ocean. It is believed here that the lowering of the rate will act as a spur | to industry. It may even give a breath or two of oxygen to the scarcely breath- ing stock market. The revival in volume | of trading recently which brought with | it at least one 4,000,000-share day was | not displeasing to the powers that be around the Treasury Department. ! Unguarded Stocks. On the other hand, the rate now established is not calculated to cause the issue of any huge volume of stock It is the attitude of the Treasury De- partment that there are too many un- guarded stocks running around now. It it felt that the inflation in the stock market brought out scores of security issues which might ' better have never beeh the subject of bid and asked quo- | tations. It is pointed out that this has been the case in previous financial upheav such as 1893, when real | estate was the subject of speculation; in 1906, when the mining stock boom was at its height in the furor of the oil excitement in California and Texas and other States, and during the Florida land excitement. i ‘This should not be taken as indi- | cating there will be no new financing. | New financing is absolutely essential if | the programs as laid out by the indus- | trial railroad and utility leaders of the country are to go through. But this financing will be industrial, not promo- tional, in character. In other words, the number of new corporations is likely to show a drop from its peak of 1929. The existing rates are sufficiently low to allow for this type of issues, but not low enough to encourage speculative | financing. It is worthy of note that much financing is being done privately. Such issues are being taken up privately and never offered to the public at all. One authority places the volume of new bond and note financing in January at $740,348,000, as compared with $186,. 166,000 in new publicly offered stock offerings. Trend Toward Bonds. There are indications of a trend toward bonds as compared with stocks | in the current issues. This is specially | true in railroad and utility financing. There is reason to believe that this trend is a welcome one so far as the Federal Reserve Board and the Treas- | ury Department are concerned. The strength of the market for new bonds is indicated in the drop in yield in se- curities of the higher grades. The Federal Reserve Board is not going to make rates for any of the regional banks or exert pressure on them, but it is felt that if the low rates are not maintained it might check pro- grams to stimulate producers to go ahead with plans for meeting future de- mand which will develop when the weather gets warm. Moreover, there is a good deal of insistence around the Capital that rates for the farmer be made as correspondingly low as those for the industrialist. The St. Louis rate is likely to drop also as soon as the benefits to agriculture and industry in that section resulting from such ac- tion are fully realized. One Treasury official is known to feel there is no reason why the cut should not be made. (Copyright, 1930.) | | i UPSWING IN WHEAT FOLLOWS DECLINES Market Recovers Some of Lost Ground in Dealings at Short Session. By the Associated Press. CHICAGO, February 8.—With the Federal Farm Board scheduled to meet Monday to consider organizing a stabi- lization corporation, the wheat market here tended upward at the last today. A majority of traders leaned to the view that the proposed new auxiliary of the Farm Board would be quickly created, and that for at least the time being .the effect would be bullish. Weather conditions over domestic Win- ter wheat territory were also being watched sharply and had a tendency to bring about week end buying to even up_accounts. Wheat closed irregular at 14 net de- cline to Y4 advance compared with yes- terday's finish. Corn closed lgal; to e high- 7 gain Low ' &l URGED TO AID MARKET Special Dispatch to The Star. NEW YORK, Februaty 8—Although there are indications that the used car market: will improve. conditions in this respect for the couniry in general show little change as yet. Considerable senti- ment favors co-operative junking, cov- ering all sales areas, as a feasible way out of the used car dilemma. This plan provides that manufacturers shall take certain number of new cars bought by the latter, the old cars to be junked and worthwhile parts and materials salvaged. It is contended this plan will create a larger market for new cars and financially aid the dealers. SEEEL DEMAND UP. PITT! GH, February 8 (Spe- cial) —Important increases in the de- mand for steel alloys, notably chrome nickel alloy and stainless chrome steel, are reported by Harry E. Sheldon, pres- ident of the Allegheny Steel Corpor: jon. company’s alloy mills at Brackenridge, Pa., are now working at full capacity and production has doubled since August, Mr. Sheldon statean | there being large supplies of fruits and one used car from each dealer for a g Week’s Financial High Lights By the Astociated Press. Brokers’ loans... Federal Reserve sy: Holdings (United States) Securities . Gold reserve. Rediscounts Bank clearings. (Final three cipl Car loadings week ending January 25.. Crude oil production (barrels).... Stock sales (N. Y. Stock Exchange) Bond sales (N. Y. Stock Exchange) | New financini Call money rate Time money rate. Commercial paper. — | | Last week. Same week ‘29, | $3,345,000 $5,669.000 % 69.3% | $476,536 $200,989 | 2,985,212 2,663,920 456,941 851,621 9,680,402 14409616 This week. $3,402.000 8.0% $477.844 2,976,563 381.442 11,113,902 e.) 847,353 2,615,600 18,801,830 $49,497,000 135,769,000 862,621 2,595,000 19,961,350 $55,377,000 07‘623.0(19 926.474 2,680,050 | 24.898.330 | $55.267,000 | WHOLESALE MARKET ACTIVE DESPITE INCLEMENT Merchants Report S WEATHER atisfactory Business. Retailers Also Declare Week Has Sh “It has been strictly a weather mar- | fishermen for much of their suppues‘ ket,” was observed by a wholesale deal er at the close of the week's market yesterday. “And such weather as was experi- | enced,” he added, “never was looked upon as being beneficial to trade.” In spite of all the bad weather, ho ever, wholesalers received heavy ship- ments of commoditics and managed to wind up the week's business very satis- | factorily, according to reports. | Most dealers had commodities to | carry over the week end, a condition | that is naturally expected, most of the ock carried over not being of the per- ble kinds. | t is absolutely necessary to carry | over some stock with which to begin | the Monday trade," observed.a dealer, | “and the stock on hand at the close of | the week's market, for the most part, was just what is needed for the early Monday morning trade.” Business Is Better. Business in the commission house dis- trict proved unusually attractive to many retailers during the week, accord- ing to statements of such merchants, vegetables to offer the trade during the entire week. On account of the snowfall of the previous week, dealers anticipated a shortage in supplies of the so-called greens, especially kale and spinach, from the Norfolk, Va. section. Re- ceipts of the two greens and collards fell off to an appreciable extent, as did receipts of spinach, but growers in other sections came to the rescue. An 8-inch fall of snow in the region of Norfolk the week before put a tem- porary stop to the cutting of greens in that garden section and several big trucks from this city, reaching there just after the snowfall, had to be parked there several days. When the w disappeared and truckers were able to resume their work of gathering crops, the trucks were | filled with barrels and baskets of the | vegetables. single truck holding a carload of them, and the good roads| enabled drivers to resume their trips between the Virginia city and wholesale | houses here. Increased receipts of such vegetables, large quantities coming from Texas, re- | sulted in lower prices. Spinach, for i stance, had sold at $2 a bushel and kale | as high as $2 a barrel, but with the renewal of the shipping and receipt of products from Texas, a material drop in prices was recorded. “Kale always is cheaper than spinacl commented a dealer, “often selling at one-half the price of the latter.” Spinach prices dropped from $2 early in the week to about $1.25 yesterday. Collards. also from the Norfolk section of Virginia, proved a good seller lasf week at $1 or more a bushel basket. Cold weather put an end to the crop of broceoli in the vieinity of Norfolk, but California growers supplied quantlties of the popular vegetable to local dealers, Commodity Prices. At the close of the week’s market, | which, according to reports, was satis- factory to most dealers, prices of vari- ous commodities were quoted as follows Butter—One-pound prints, 391,240 tub, 3715a38';; store packed, 25a30. Eggs—Hennery, 41; fresh selected, 41 hennery, 40. Poultry, alive—Turkeys. young, 32a 33; old, 27a28; Spring chickens, large, 30; medium, 30; broilers, 32: horns, 28; fowls, 26; 20 ducks, 15a20. Dressed—Turkeys, young, 36a38; old, 32a33; Spring chickens, 35a37; broilers, 38a40; Leghorns, 35; fowls, 28a30; capons, 35a40:; roosters, 22a23; ducks, 28a30; keats, 50a60. Meats, fresh killed—Beef, 23a25; veal, 28; pork loins, 28; fresh hams, 25; fresh shoulders, 20; smoked hams, 25a 27; smoked shoulders, 22; bacon, 25a 26; lard in bulk, 121%; in packages, 1315, Live stock—Calves, 16; lambs, 1 Poultry and egg dealers had a week of changes in prices to require their at- tention. The previous week, egg re- ceipts showed such an increase that prices dropped several cents a dozen. Then came the snowstorm to interfere with hauling eggs from within a radius of 100 or more miles of the city. Even then it was belleved by dealers that prices would not increase, dealers relating that hens usually continue lay- ing when they once start and reason- ing that the storm would be of such short duration that receipts would not be affected. “But thc roads in rural sections of the nearby States became virtually im- passable,” commented a dealer, “pre- venting some of the big haulers from reaching the city with cargoes of the hennery products. “And higher prices were the natural result,” he added, “but prices are bound to drop the next few days unless an- other and more severe storm is ex- perienced.” While whole prices of the hennery product yesterday continued at prices quoted early Friday, there was a ten- dency at lower retail prices on the farmers' line, some haulers dropping to 45 cents a dozen early in the day. These haulers also offered poultry at prices below prices demanded by most re- tailers, but their lower prices had no appreciable effect upon the wholesale market. | | Poultry Supplies. ‘There were not many turkeys in evi- dence on the farmers' line yesterday, but haulers had large quantities of chickens, capons, ducks and a few keats to offer the retail trade. They also had quantities of pork and pork prod- ucts, home-prepared food and apples. Wholesale poultry dealers continued to reccive fairly large quantities of turkeys from Maryland and Virginia goultry raisers, receipts in some of the ouses being heavy enough to present the appearance of Christmas business. “Years ago,” remarked a dealer, “the turkey business amounted to but little after the close of the Christmas holi- season, many consumers buying the fowl only at the Christmas and ‘Thanksgiving holiday season.” “But now it is different,” he added, “the demand continuing fairly heavy as long as the ter séason lasts, and a few consumers demand them through- out the entire year.” Receipts of marine products were light early in the week and prices were not cheap. An increase in receipts of oliday y king | cultural Economics) own Good Results. of fresh fish, the several varieties of flslh coming from there finding ready sale. Crabmeat continued scarce and high, very small quantities having been re- celved from Biloxi, Miss., and Crisfield, New Orleans, La., shippers sent | supplies at about the highest prices | quoced this season. Shrimp, both green and cookea, continued in plentiful supply. Probably the largest quantities of muskrats ever received in this city ceached local dealers the past week. They were offered at 25 cents eacl “The muskrat is about the cleanest of all animals,” commented a dealer, thoroughly washing all food before pa taking of 1t, but the name probably is the one reason why many persons re- fuse to make purchases.” Oranges and Grapefruit. Commission merchants reported heavy receipts of oranges and grapefruit from Florida shippers, low prices increasing the demand. Some of the oranges werc from the Inaian River section of Flori- da, reputed to be one of the best orange: growing secuions of the State, and were exceptionally large. Some of the grapefruit also was much larger than the average fruit and of splendid quality, being very heavy. Oranges were quoted from $3.50 to $5.50, grapefruit prices covering a range be- tween $3 and $5. Many small oranges also were received the past week and sold at prices making it possible for retailers to offer some as low as 15 cents a dozen. Apples continued in moderate supply most of the week, receipts increasing yesterday as a result of weather condi- tions making it possible for haulers to bring supplies from the Shenandoah Valley of Virginia. Bushel baskets of the fruit, mostly Virginia and Pennsyl- vania stock, sold at prices ranging from $1.25 to $1.75, few fancy apples selling slightly higher. Fancy box stock from Washington sold around $4 and $4.25. Pears, fancy stock from Oregon and Washington, were offered at $5 most of the week. ~Alligator pears, not very plentiful, were quoted from $9 to $11 a box. Pin les, grapes, cranberries | and honeydews were among other fruits | offered the trade during the week. New potatoes, Florida stock, received | during ‘the week, was the interesting feature of the week's vegetable market. Some of the fancy stock, received in boxes, sold at $4 a box, barrel stock sell- ing at $13 and $14, No. 2 stock selling slightly lower. Light supplies of hothouse cucum- bers, mostly from Indiana, met a weaker market the past few days, boxes of two | dozen, fancy stock, selling at $4. Extra | fancy stock sold at $4.50. Tomatoes | have not been very plentiful, dealers report, and prices are not cheap. An | improvement in their quality was | Teported. | _ Best quality string beans were in light | Teceipt the past few days, ;hlmpel‘s selling as high as $4. receipts of cabbage, Florida and South Carolina stock, and several other varie- ties of vegetables were reported during the closing hours of the week's market. Fruit and Vegetable Review. Yesterday's daily market report on fruits and vegetables (compiled by the Market News Service Bureau of Agri- said: Apples—Supplies moderate; demand light, market steady; boxes, Washing- ton, extra fancy, medium to large sizes, Delicious, 4.00: ; mostly 4.00; Stay- mans, 3.00a3.25; large sizes, 2.75; extra fancy, medium to large sizes, Spitzen- burgs, slightly decayed, 3.003.25; bushel baskets, Virginia, unclassified, 21 inches up, Staymans, 1.40a1.50; Yorks, 1.25a 1.40; U. 8. No. 1, 21 inches up, Yorks, 1.50a1.75; Staymans, 1.60a1.75; Penn- sylvania, U. S. No. 1, 21, inches up, | Yorks, 1.40a1.50; U. S. No. 1, 2% inches up, Yorks, 1.50a1.65. Cabbage—Supplies light; demand moderate, market firm; new stock, Florida, 15-bushel hampers, pointed type, 2.50a2.75; old stock, New York, l;o:‘;pounda sacks, Danish type, mostly Celery—Supplies moderate: demand light, market steady; Florida, 10-inch crates, dozen, 3.00a3.25; 6 dozen, 2.75 a3.00; dozen, 2.25a2.50; 10 dozen, 1.75a2.00; few higher. Lettuce—Supplies moderate; demand light, market steady; California, Im- perial Valley, crates, Iceberg type, 4 dozen, 4.50a5.00; mostly 4.75; 5 dozen, best, 4.50; fair quality and condition, 3.5084.00; Arizona, crates, Iceberg type, 6 dozen, fair to ordinary quality and condition, 2.00a2.75. | . Onions—Supplies moderate; demand light, market steady; New York and | Michigan, 1 unds sacks, yellows, U. S. No. 1, medium to large sizes, 2.25a 2.50; Ohio, 100- ids sacks, yellows, U. 8. No. 1, medium size, mostly $2.25; Colorado, 50-pound sacks, Valencia , large size, fair condition, 1.25. uwen—sugguu light; demand light, market about steady; Maine, 150- pound sacks, Green Mountains, U. S. No. 1, few sales, 4.85; New York, 150- pound sacks, round whites, U. S. No. 1, 4.50a4.65. . String beans—Supplies light; demand light; market steady; Florida, bushel hampers, green, 3.75a4.00; fair to ordi- nary quality and condition, 2.50a3.00. Eggplant—Supplies light; demand light, market steady; Florida, pepper crates, fair to ordinary quality and con- dition, 2.50a3.50. Squash—Supplies light; demand light, market dull; Florida, p;gper crates, wrapped, 4.5085.00; ordinary quality, large size, low as 3.50. ‘Tomatoes—Supplies ligh demand light, market steady; Florida, lug boxes, ripes and turning, wrapped, 6x6, few sales 5.00a5.25. Unknown origin: Re- s, ripes, wrapped, fancy count, 1 ;' fair_condition 'low as 3.00; choice count, 2.50a3.00; some overripe lower. Spinach—Supplies liberal; demand light, market steady; Texas, bushel baskets, Savoy type, mostly ; fal quality and condition, 1.0081.25; Vir- ginia,” Norfolk section, bushel baskets su:voy‘m. ordinary quality and condi- n, 3 c-unnuwer—aurpuu liberal; demand moderate, marke ltzlld‘y; California, T, ht; demand Peppers—Supplies light, market firm; lorida, pepper crates fancy, 6.00a6.50. Peas—S8upplies light; demand light, market slightly weaker; Mexico, 45- pound crates, 4.00a4.25. Light numerous varieties of fish, especially those from Winter nets operated along the Potomac River below Alexandria, was reported the past two days. Shad and herring continued in light receipt all the week, prices of shad be- ing higher than during the preceding week, while the price of herring con- tinued the same, 10 cents a pound. Dealers relied upon North Carolina Carrots—Supplies liberal; demand light, market steady; California, West- ern lettuce crates, bunched, 3.00a3.50; Arizona, Western lettuce crates, bunched, mostly 3.00; Texas, Western Ilettuce graous. bunched, some fair quality, 2.50a “Beets—Supplies very light: demand light, market steady; few sales; Texas, Western lettuce crates, bunched, 3.50. - bushel | & | | | RECOVERY IN STOCK PRICES GONTINUED Market Forges Ahead During Week—Commodity Values Show Further Drop. BY CHARLES F. SPEARE. Special Dispatch to The Star. i NEW YORK, February 8—Steady recovery from the ills that grew out of | the speculative excess of last year is! being made. It was most conspicuous“ this week in a succession of reductions | in rediscount rates, starting with that of the Bank of Germany on Monday. from 62 to 6 per cent, and followed the action of the Bank of England on Thursday in cutting its rate from 5 to 41; per cent, and later that of the! Pederal Reserve Banks of New York and Chicago from 4: to 4 per cent. | This brings money rates in the finan- | cial capitals of the world down to a | basis where business may borrow to advantage and where it is more profit- able to invest in securities than in money. Minimum rates for some time have been established in the three centers that attract most capital and from which radiate the current sentiment concerning domestic ang foreign securi- ties, New York, London and Paris have | been provided with discount rates suf- ficlently low to permit them to embark on long-deferred programs of industrial and foreign trade expansion. The way has been paved for setting up the bank for international settlements, and for the floatlag of the first porvion of the reparations loan, and then for the send- | ing of additional American capital into those parts of the world that have been hungry for it since 1928 and can only buy goods in America as America con- tinues to prov'de funds for their internal development. Business Sentiment Helped. Easy money In the United States, or rather in New York—for there are still a number of the Federal Reserve dis- tricts, whose rediscount rate is 4!z or 5 per cent, and whose loaning rate is 6 per cent and higher—will help busi- ness sentimentally; actually only as it permits of the easy flotation of securi- ties from whose proceeds industrial or public utility expansion will proceed. It is a restorative, but not a cure. Easy money does not mean that business is better, but that business has been poor and that in the present situation the combined deflation in securities and in industry has released abnormally large sums of capital to the open market, which always attracts it when it has no employment elsewhere. Sentiment rather than fundamental conditions upset business after the stock market panic and an improvement in sentiment growing out of a stock mar- ket recovery has had already, and will continue to have, the greatest influence in restoring the business man's courage and starting him to expand on the guarantee of easy money rates. Commodities Continue Decline. One feature of the business situation that continues to disturb is the decline in commodity prices, especially those of wheat and cotton. During January both showed a decrease of over 1 per cent. More striking than this was the de- cline in the 12 months to February 1 amounting to nearly 11; per cent, and bringing the average to the lowest level for that month since 1922. This har- monizes with various other measure- ments of commercial depression, which indicate that the slump at the end of 1929 was the most severe since the de- flation period following the war. ‘There is a special reason in nearly every instance where a major com- modity such as wheat, cotton, rubber, coffee or a metal has shown a steady decline. The fact that all commodities have been on the down grade and have moved quite sharply in this direction in recent weeks suggests that there has been a normal lag after the break in securities and that the natural conserv- of the recognized commodity indices | Chairman of Board : PETER A. DRURY Has just been re-elected to his impor- tant official position in the Merchants Bank & Trust Co. He was president of the bank for many years, about a year ago asking to be relieved of some of the details and being. succeeded In the presidency by Rolfe E. Bolling. BANKS MORE FREE INSECURITY LOANS Investors in Stocks Active in New York Market as Credit Expands. Special Dispatch to The Star. NEW YORK, February 8.—The de- cided improvement in attitude through- out the investing community which has been evident for some little time past continues, says James B. Clews, and has given the market at recent sessions a more genuine tone of improvement than it has been able to show at any time since the late panic. Already re- flex results of this condition of affairs are making themselves felt throughout the country among dealers and pro- ducers who are inclined to get their point of view in a large degree from the financial market. In the opinion of & good many busi- ness men, the tendencies to curtail- ment and discouragement which showed themselves at the time of the panic were_effectually offset, or neutralized, by the courageous policy of financial and other stabilization which then followed. In the same way, the current improvement of market conditions is leading the way toward greater activity in business than could otherwise have been expected, and is bringing about a restoration of trade on a large scale. Investors Are Active. Reliable estimates for the month of January are now available and show that in the aggregate a total of about $662,000,000 of new bonds were sold in this market. Although current fig- ures for member bank condition show that there has been a continuing ten- dency on the part of some banks to- ward the liquidation of investments, it is also true that loans on securities have moderately increased at that are in strong reserve condition, so that the net amount of credit supplied during the month has definitely en- arged. 7'he situation thus presents a hopeful aspect from the point of view of new domestic flotations, while at the same time there has been fresh indication UTLITES GROWTH DECLARED STEADY Further Expansion of Indus- try Forecast by Head of Large Concern. BY JOHN F. SINCLAIR. | Special Dispatch to The Star. NEW YORK, February 8.—John J. | O'Brien, wide-awake president of H. M. Byllesby & Co. of Chicago, thinks that more attention will soon be given by the public and the lawmakers to the sharply increasing degree of competi- tion which is springing up between gas and electric utilities, The great strides made in steam and internal combustion machines, due to their higher efficiency, will offer in- | creasing competition to the extension | of power. Just now cheap coal and oil prices, caused by overproduction, makes an unusual situation. Neither does this utility leader believe that utilities are approaching any over- extension or overproduction. “The facts point to the contrary. And this is why expansion will continue on a reasonable earning basis,” Mr. O’Brien says. Cheaper gas pipe manufacture has had a lot to do with it, too. That's where L. R. Smith of Milwaukee comes into the picture. Automatic Production. L. R. Smith, 46, president of the A. O. smith Corporation of Milwaukee, was employing 1,200 men when he began to develop his now famous auto- matic machines His original purpose was “to build a plant to run without men.” He spent five years' time and $8,000,000 on the chance that his automobile frame plant would run. It did and it was not long before the company was making, in Milwaukee, a large part of the auto- mobile frames used by General Motors and several others, which were sold at a price far lower than the com- panies could make the frames in their own_factories. “We started out to build 7,280 frames with 180 men. This was our objective. We know now that we can build 8,000 frames with 120 men,” said Mr. Smith. It wasn't a boast. He was stating & plain fact of scientific interest. Enter the factory, see it humming with life, every piece of machinery delicately attuned to every other—and hardly a worker to be seen. With his automatic frame machinery perfected, Mr. Smith tackled another. In four months from the time he con- ceived the idea of manufacturing fln pipe he had his automatic gas pipe factory going. Today, after two years in the business, he sells more gas pipe than all the rest of the steel companies of the United States combined. “Last year we did $60,000,000 gross business, made $7,500,000 and paid $600,000 in dividends,” said Mr. Smith. “But we did it with 400 engineers and eight salesmen. Orthodox business re- verses the process. We believe success- ful American business in the future will follow scientific research rather than high-powered sales methods to sell of favorable consideration of new for- eign issues. This has encouraged ex- jatism of bankers toward making new {loans has played a part in the com- modity situation. In this connection it is of importance to note that the bor- rowings of member banks of the Fed- eral Reserve this week are the lowest since 1927 and that the item of bank loans on securities is steadily thouzh not materially decreasing. Stocks Trend Upward. much to recover ground lost last Au- tumn and to recognize the beginnings of a turn in business and the benefits of a fairly long period of moderate money rates. This week the average of industrial and public utility stocks was 10 points higher than that reached on December 9. This conclusively proved that liquidation of all of the distressed stock taken by banking pools or other agencies had been liquidated or placed where it was not likely to come into sight except at materially higher prices. At the end of this week the average of rails has also advanced above the December 9 figure, and in spite of the poor November and December returns to the carriers and every indication that they will make an unfavorable showing in the first two months of this year, there has been an increase in the de- mand for them and a corresponding ad- vance in their market value. Altogether the stock market picture is more at- tractive now than it has been in some months. Compared with a 50 per cent depreciation in the market average be- tween the middle of September and the middle of November, or a decline of 148 points, there is now only a shrinkage shown of 28 per cent, and an_average loss of 87 points. amount of market recovery ought for a time to satisty Wall Street. It is much greater in percentage than has occurred in any branch of business except iron and steel. It has recog- ni the prospect of easler money and what this means as a stimulant to in- dustry. The public s again showing symptoms of a speculative fever and an inclination to buy stocks which were obviously attractive investments two or three months ago. Trusts Are Rescued. The investment trusts and trading corporations have in many cases been rescued and their securities restored to a more satisfactory price basis by the general advances in stocks of all classes since the end of the calendar year. A majority of those that have reported for 1929 show total market values much below cost. This condition has been mlfflil“y improved in the past five weeks. A typical case is that of a trust whose portfolio in December 31 showed an excess of cost over market value on{ & group of 34 issues, representing 207.- 000 shares, of about $2,609,000. With port trade interests who believe that the restoration of a strong market for foreign securities in New York is dis- tinctly essential to the maintenance of our foreign shipments upon the satisfactory basis of 1929. In spite of downward tendencies in wheat, cotton and other staple prices, the chairman of the Farm Board is understood to hold to the opinion that there will be no change in the loan policy of that ‘The stock market has already done | organization, its effort being made to ! endeavor to maintain values at or near their present levels as long as is prac- ticable. Market Review and Outlook. With investment recovery thus well under way, it may be confidently ex- pected that a similar revival of specu- lative activity will not be far off not- withstanding the slightly downward tendency of the loan_ account durin the past few weeks. Heavy selling of “distress” stock which has occasionally taken place, largely for bank account, has been well absorbed and the ablility of the best issues to recover and even to move to new high levels is good evidence of the fact that the market is now headed upward. That being the case, far-sighted buyers, who are able to pur- chase with a view to holding for a rea- sonable time, are more and more gen- erally completing their purchasing pro- grams and expect to operate under them as opportunities offer. Delay in following their example and in map- ping out policies may easily lead to the missing of valuable opportunities at or around current leveles, as the present situation unquestionably holds out many inducements to the buying| public. PRICES OF COTTON FUTURES SHOW GAIN Market Steadies After Recent Break and Again Points Upward. By the Associated Press NEW YORK, February 8 —VYester- day’s sharp break was followed by ral- | lies and the development of a steadier | tone in the cotton market today on covering and trade buying. Advances met some further liquidation but the offerings were lighter than recently. May contracts sold up to 15.60 or 25 points net higher. The close was several points off from the best under realizing, with May closing at 15.50 and with the general three exceptions all of the stocks owned by the company have advanced since the end of 1929, so that the present excess of cost over market value is only $1.000,~ 000. In other words, what wasa 15 per cent shrinkage has been reduced to one of about 5 per cent. The stock of this company has nearly doubled in price compared with its panic level. bu still 35 per cent under its “high” for 1929 and 25 per cent below its issue gl‘l . Others have net done so well, ut all are improving. A common incident in the affairs of the investment trusts and trading cor- porations last year, and now being re- vedled, is the extent to which so many of them seem to have depended on trading profits rather than on income in order to establish a price for their shares and to cover interest and divi- dend requirements on their senior obli- gations. The list of those that realized more doliars out of the sale of securi- ties from their portfolios than they did in interest on bonds, dividends on stocks and interest on call and time loans is a long one. would seem that a different policy I would have to be adopted by trust market closing steady at an advance of 10 to 21 points on all months except January, which was net unchanged. Futures closed steady, unchanged to 21 points higher: March, 15.29; May, 15.50-51; July 15.74-76; October, 15.96; Decembesriolu.lfl-ll. Spot steady; mid- January . Marcn May e o Opening: May, 18.26: Jul: cember, 16.04. —e Close. 16.07 1829 18'50-.51 18.74-.76 1607 March October, 15.33; De- managers from now on, if the credit of their senior securities is to be improved. “ither through more careful invest- ment or the application of a greater part of their funds in income produc- ing securities, they must build up a fund to cover interest on bonds and dividends on preferred stocks and es- tablish a surplus independént of earn- ings of the precarious kind that may be derived from taking profits on tempo- rary market commitments. (€oprisht, 10303 ‘This practical dreamer has other far- reaching plans in mind, soon to be an- nounced. He has only started. He is young. He has visions of what Ameri- can industry—automatized—can do in the future. One of the finest engln!erlna re- search departments in America is be- ing built at his plant. He believes in it because it has made him what he is— one of the most prosperous and im- portant business leaders in the country. Huge Oil Dome. One of the largest oil domes in the United States is near Fresno, Calif. It is called Kettleman Hills, an area about 8 miles long and 112 miles wide. The Standard Oil Co. of California owns about 50 per cent of the fleld, the United States about 40 per cent, and the rest is held by various companies and individuals. Ofl production there is shut into about 14,000 barrels & day by an operators’ agreement, which expires on July 1, 1931. But there are many rumblings among the small owners that they are being unlawfully squeezed out. Should the operators’ agreement fail, Secretary of Commerce Wilbur has de- clared that $1,000,000,000 in resources will be wasted, and the American mar- ket demoralized by the unlimited pro- duction of this field, which geologists have estimated contains more than $4,000,000,000 worth of ofl and natural gas. Secretary Wilbur suggests four rem- edies to avoid trouble in this fleld. 1—Pool all profits and divide them :figrdinl to the acreage owned in the eld. 2—Have the large companies purchase all the small holdings. 3—Have the Government purchase all the land from owners who refuse to sign the limitation agreement. rganize a holding company to control and probably exploit the entire development of Kettleman Hills. More rich oll flelds have been dis- covered in the United States in the past 2 years than in the preceding 10. The small producer finds hard sledding. But this is true—overproduction has always been present in the ofl business. The big corporations, in spite of it, have grown fabulously wealthy. So it's not an insuperable handicap. Britain's Debt. Great Britain's public debt is about $38,000,000,000—more than twice that of the United States. It isdess by about $2,000,000,000 than it was at the end of the war, but it is higher than it was five years ago. Chancellor of the Exchequer Snow- den estimates that for the fiscal year of 1929-1930, the interest and manage- ment of the war debt will take about 45 per cent of the current business ex- penditures of the government. o QI 'mwl';’nflmt t%iu,u.':.sso.ow— of a expenditure of $3,389,- 520,000. ks et No one who has studied the question of war debts but realizes that such a tax burden bears very heavily upon British industry, resulting in an overhead which has become a severe handicap to that industry in its competition for in- ternational trade. nofi[tlléhnru}:h tnd‘e "l greater in value an it was in 1913, its s year before the war. e {Copyright, 1930, by North American News Paper Alliance.) GAIN IN COPPER TRADE SEEN BY VOGELSTEIN Special Dispatch to The Star. NEW YORK, February 8.—Stocks of refined copper will be of normal size by Midsummer as a result of curtail- ment of production and improvement in consumption of the metal in th- nfilnlm of L. Vogelstein, chairman of the board of the American Metal Co. Mr. Vogelstein ‘ believes the industry has taken a definite turn for the better and points to larger orders coming .0 wire drawers and to a somewhat larger total volume of copper buying in the t week or 10 days compared with ember or January. The full effect of curtallment at the mines now under way will result in production of blister copper at the smelters from scrap and virgin ore at an annual rate of 1,800,000 short ton: per year, compared with 2,225,000 short tons last year, according to Mr. Vogel- stein. An appreciable increase in production ildsummer or early at the mines by M Fall may be necessary to meet demands, n. in his opinios SILVER QUOTATIONS, NEW silver, 4¥°Ru§m?nmd:u”u: Kyl |