Evening Star Newspaper, February 23, 1930, Page 67

News of Markets Pages 1 to 4 Part 6—12 Pages e Bt TRUST CONFERENCE REVEALS INCREASE IN BANK BUSINESS Growth of Public Demand for Executor Service Shown in Reports. INVESTMENT IN STOCKS FOR ESTATES DISCUSSED Branch Banking and Compensation Charges Considered at Meeting. BY EDWARD C. STONE. Local bankers declare that the Mid- winter trust conference in New York brought out some tremendously inter- esting facts on the growth of this serv- ice in banks and trust companies and at the same time focused attention on some extremely baffling points in the handling of estates. People are becom- ing more and more “trust minded” year as the so-called “trust idea” steadily tightens its grip. Branch banking came in for a lively discussion, the claim being made that the small community can be supplied with metropolitan trust service only by the big banks taking over the smaller ones. The question of what earnings trust departments should show and the the inside workings of banks. One of the most interesting addresses related to the desirability of purchas- York, discussed Trust Accounts” and incidentally men- tioned the effect of the stock market crash them. “Blue Chip” Stocks Put Down. ‘The market crash, he pointed cut, it down “blue chip” m’& just as as other stocks Life Insurance Company, that had that concern been an jnvestor in common stocks during the 56 days from Sep- tember 3 to October 29, 1929, it would et averages, 508,000,000. However, even what might have hap- pened to trustee accounts ent of trust laid down. proposition must be considered on its merits. Yield is a good indicator. Many stocks, he said, would not have been purchased before the crash had yield been thought about. ‘wildcat: heaven's sake come and help ” me let it #o. Statistical Data Held Vital. “Statistical data should always be carefully in considering the subject,” said Mr. Wilson. “In cases the company’s record is satis- over l‘ perlod’ o‘; years, from of earnings, manage- ment, asset position, the nature of the indy and its prospect for the future, to be justified in for certain accounts. Whenever the yield from common stocks is less than the yield from high-grade bonds it is time to _stop—Ilook—and listen! ‘The price of bonds is usually by the price of of even the best ently controlled by stocks are speculative forces and are often entirely Anot important factor ‘v‘:"mm' is this : When the yield from high-grade stocks is considerably more the yield from high-grad Cunil We are 1 & gh-grade Londs A-:;m) ét Ilmt:inle to ~such st should be purchased for any trust accounts. At l:he same time too high a yleld is often a danger Normal o mal conditions. Of course, said Mr. ‘Wilson, only a reasonable portion of each trust fund should be invested in common stocks, even in cases where it seems desirable and is permitted by terms of the trust. The propor- tion which may be invested in com- mon stocks depends upon the facts of each case. Some trustees feel that no trust funds should be invested in com- tocks, as the landlady raid Very easy money determine whether yields usually indicate nor- Well, there is a tim el ere is a e and place to buy common stocks.” = Proper Compensation Necessary. ‘The necessity of trust companies set- ting an adequate scale of compensation in the handling of trusts was stressed by L. H. Roseberry, Los Angeles banker; practical reasons for establishing “living trusts” were explained by Lane D. Web- ster of San Diego, Calif,, and the best ways of spreading the trust idea were g:run&d by F. R. Behrends of Los An- les. Funds for charitable purposes admin- istered through community trusts now exceed $32,000,000, and have doubled in the last two years, Ralph Hayes, direc- tor of the New York Community Trust, informed the conference. There are now 75 community trusts in the United States, he said, distributing annually more $800,000. ‘These trusts, he said, utilize banks and trust companies in their various cities as fiscal custodians, but the in- come from the trusts is distributed un- der the supervision of a committee I‘&- ted by the banks and the public. committee in every case, he ex- has the er to amend the a fund is used in condif tions make obsolete. The first community trust was established in Cleveland in 1914, he said. Financial District Notes. One of the most important announce- ments made in the local financial dis- trict during the week was the statement of Secretary C. z Gochk:xl‘er !}l‘l:; the ‘Washington Stock Exchange se- cured new quarters because of the American Security & Trust Co.'s pro- rogram. Building was select- ed by the special exchange committee, made up of George O. Walson, Eugene ng | by its women is increasing yearly,” FINANCIAL AND CLASSIFIED he Sunday Star Classified Pages 5 to 11 WASHINGTON, D. C, SUNDAY MORN G, FEBRUARY 1930. * 23, | GEORGE A. GARRETT (upper), A. CHESTER FLATHER (center), ARTHUR FORAKER (lower), Who took the initial steps toward form- ing an organization of the 16 New York Stock Exchange houses doing business in Washington. The aim of the n- ization is to bring about more uniform ractices be elected in a few days. Women Now Own More Than Half of Corporate Stocks Buy Sound Issues and Hold Securities Much ‘Women own well over half and in many instances 60 per cent of the stock outstanding of the leading railroad, public utility and industrial corpora- tions of the United States, according to a statement by the publishers of the Encyclopedia Americana. Their total investment is reckoned in excess of $60,000,000,000. “The wealth of our country controlled says the statement. “This is due not so much to the increasing interest of women in financial affairs as it is to the fact that women are usually the recipients of the large fortunes bulilt up our enterp: business men and of their life insurance. “Corporations which come directly in contact with the daily lives of women, light, power and gas companies, show h"l' mu‘:olmunm, a continual gain in the percentage of woman stockholders | over men. Women are not so inclined | to be interested in oil companies, but | show a decided preference for the shares of our premier railroads. “Women also show more of a tendency to buy and hold securities than do men who are likely to take a speculative position. Men do not seem to value the regular dividend or interest payments as much as women and are more in- clined to take long chances, often with large losses.” INDUSTRIAL ACTIVITY SHOWS IMPROVEMENT| Power Demand Ahead of December, but Below Same Period Year Ago. ) Special Dispatch to The Star. NEW YORK, February 22.—That in- dustrial activity in the United States during January made a 4.6 per cent gain as compared with December, but was 8.1 per cent below the mark estab- lished in January, 1929, is shown in the consumption of electrical energy by more than 3,600 manufacturing plants throughout the country, Electrical World reports. General manufacturing reached the low point in the present cycle ip December, but a marked up- ward swing became evident in the fig- ures for January operations. Manufacturing operations in the three | principal industrial sections of the/ country all reported a higher rate of activity in January as compared with | December. New England’s gain was 12.6 per cent, the Middle Atlantic States, 4.4 per cent, and the North Central States, 17.4 per cent. Continued drops in man- | ufacturing activity were reported for ! the Southern States, with 15.6 per cent, | and the Western States, with 8.7 per) cent. Every section of the country, however, reported manufacturing activ- | ity last month was lower than in Jan- | uary, 1929. For the first time since last August the automobile industry, including the manufacture of parts and accessorles, | showed greater productive activity. Public Service Electric. Nearly $27,000,000 has been author- ized for the 1930 budget for Public Service Electric & Gas Co., operating subsidiary of Public Service Corporation of New Jersey. This provides for new construction, extensions, imj 'ements and betterments for both electri¢ and gas departments throughout the company’s territory in New Jersey. ! was difficult to settle, the location, rental charges and length of the lease being the chief issues at stake. The place chosen is very close to the financial center of Washington. Local bankers report that deposits have shown a substantial increase since the controller’s last call on December 31, 1920. What March 15 will do to these deposits remains to be seen. The savings departments are said to be par- tage will | the market’s strength to liquidate one- ADVANGE N STOCK PRIGES HALTE BY *HEAVY OFFERNGS Securities Bought in Panic Sold in Rising Market of Recent Weeks. DECLINE IN COMMODITY VALUES IS DISTURBING Business Situation Is Favorably Affected by Abundant Sup- ply of Money. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, February 22.—A bull position in stocks which had grown stale and - unresponsive to stimulation met with its first reverse this week since the early part of January. Average prices on Thursday showed the heaviest loss in two months. This change in the market situation recognized the fact that speculative securities had been rising faster than was warranted by earnings and prospects and that the improvement in industry as a whole did not justify as much of a recovery in stocks as had taken place since the middle of January. The high average prices established the week previous had permitted the resale at a profit of stocks purchased in the October and November breaks. This selling was of large enough dimensions to hinder the operations of those who were making the most of the more cheerful business sentiment to distribute special issues. Evidence that banking pools and finance companies were feeding out stocks in the upper price ranges of the market increased from day to day. One institutional group that bought between issues last Autumn took advan of third of them. It was apparent that that had overstayed their markets 1f & dozen conspicuous industrials were reducing their commitments, being convinced that the outlook for these stocks in the next few months is not an encouraging one. Commodity Index Low. of ter influence on stocks than heretofore was the decline of prices of wheat and cotton and the al at- tention directed to the falling level of all commodities. Not since 1922 the commodity price index been as low as it is today. In January wholesale prices were 4 cent under the year previous. the downward move- ment is due primarily to the shrinkage in value of farm ucts, the tendency runs through nearly a dozen important items and affects economic and political conditions in many parts of the world. Not only are commodities here nearly as low as after the war deflation, but the same is true in Great Britain and in Fran ce. Associated indirectly with this is the matter of unemployment. The in- crease in the number of people out of work in January ‘“'rh"]:l above the seasonal percentage. e figures com- iled by the Bureau of Labor indicate t a 1 per cent decrease in unemploy- ment in October was followed by de- mma{overa;ercentmwwamher and. December and 1.8 per cent in Jan- depression and, e coming o Spring, conditions will change for the tter. such as chain stores, department stores, | bef Political Effect. ‘The_decline in wheat has a political as well as an economic reaction, but, with the fall in the price of nearly 55 cents a bushel from the high point of last Summer, a condition has developed quite similar to that brought when stocks in November had s0 far below their intrinsic values that they were rescued from a further col- lapse by an enormous volume of in- vestment buying. heat this week has been under the cost of production. Consequently, there has been a demand for it from sources that would not respond to the decline until wheat reached a level where it could be purchased at little risk, even though its statistical position remained bearish. To a less extent, the same is true of cotton. On Priday the Interstate Commerce Commission supplemented its general scheme of railroad consolidations by approving the unification plan set up just three years ago, by which the Northern Pacific and Great Northern lines were to merge in order to effect economies estimated at $10,000,000 & year. The decision could not have been other than that rendered. It had been fully anticipated. But it acted as a spur to a market that had been weighted down by other influences toward the end of the week. ‘The legal aspect of consolidation of corporations has undergone quite a change since the United States Supreme Court ordered the dissolution of the Northern Securities Co., in 1904, with which were identified the Great North- ern and Northern Pacific, and since the court in 1911 separated Standard Oil of New Jersey and Vacuum Ofl, for the latter now is returning to the bosom of the Rockefeller family. Money Supply Abundant. The release of funds from specula- tive markets and from industry is still large enough to counteract other de- mands. Where there are no serious “frozen” situations, there is an abun- dance of capital at low rates of interest. With the exception of a slightly lower total in 1927, the present volume of member bank borrowings at the Federal Reserve is the smallest since 1925 and their ratio of reserve the highest. Everything has been done for business that could be done in the way of pro- viding it with cheap money and sur- rounding it with an atmosphere of pub- lic confidence. If, with such a corps of distinguished nurses, it cannot get up from its sickbed quickly, it will be | because the {llness from which it is suffering took ‘a deeper hold than has been admitted and will require a longer period of recuperation to correct it. (Copyright, 1930.) . Equitable Life Assurance. At the annual meef of the board of directors of the Equitable Life As- surance Soclety of the United States, held today, the seventieth annual state- ment was approved, including an ap- propriation of $50,620,000 for distribu- tion to policy holders this year in dividends. In his annual report to the { board, President Thomas I. Parkinson announced that the assets of the com- pany as of December 31, totaled $1.179,391,164, an increase of $103,267,- 531 over the preceding year. Pt Automatic telephones have just been .. ll:. Thompson and Edward L. Hfllye:'.uit ticularly pleased with the present trend. installed in Singapore, Blitish Malayi : « $50,000,000 and $75,000,000 of selective | tjme uary. probably in the trough of the |092, e d, };mh the . t | of M'FADDEN BELIEVES BANKING IS MENACED Member of Congress Warns Against Spread of Chain Systems in U. S. Says Federal Reserve Has Tended to Centralize Re- sources of Country. Chairman Louis T. McFadden of the House banking and currency commit- tee fears for the future of the Federal Reserve system if the recent trend to- ward an entire change in banking methods continues indefinitely. is probably no problem before the country today of greater importance than the subject of our future banking policy, he declares. He bases his fears largely on the rapid spread of chain or group banking. He considers the apparent decline of independent or unit barking as noth- ing less than alarming as it is being followed by the substitution of various methods of branch banking, group banking, and chain banking, and a centralized holding-company control of the country’s banks. Sees Centralization. “Developments indicate,” Chairman McFadden told Congress the other day, “that the Federal Reserve system, in- stead of decentralizing banking re- sources in the United States, has tended to centralize banking to an ex- tent far beyond that which existed prior to the enactment of the law. ‘This is evidenced by the increased size and importance of big banxs, princi- pally in New York, Chicago and other large citles, so that at the present time we find that the concentrating of Na- tion-wide banking assets under control of these big banks or their affiliations has become so important that it is overshadowing the entire Federal Re- serve system of operations. “One naturally begins to wonder whether or not some of the large banks or groups may not entirely dominate the election of officers and directors of many of the Federal Reserve banks and so be a factor in the determination of the changes in Federal Reserve policy which_are made from time to the Federal Reserve Board.” At another point in his address, Mr. McFadden sald: “We find the develop- ‘There | BY GROUP PLAN LOUIS T. McFADDEN. ment of chain banking or holding-com- pany control reaching over city, county and State lines, and the Federal Re- serve districts, to the four corners of this country, with total assets running into billions of dollars, thereby repre- senting a tremendous concentration of banking assets under the control of a centralized holding company; and this is not all. Within the past wyear the group plan has developed, whereby banking is being centralized and con- trolled in groups within the confines of trade areas. We find such groups being fostered in St. Paul, Minneapolis, San PFrancisco, Seattle, Boston, Pitts- burgh, Cleveland, Detroit and many other cities.” Urges Study of Situation. At the conclusion of his remarks, Representative McFadden said that he did not know just what legislation should be enacted to meet the situation, adding that none could actually be passed at this session of Congress. He urged a complete: study of the entire banking situation with a view to find- ing out what legislative action, if any, is needed. To th'.‘l‘: end hel'nngs.lre be_bej during the present week. Ffo-l:nh\s speeches, Mr. McFadden appears much more favorable to branch banking than to chain banking, which, he says, has until comparatively recent- Iy been considered “a highly dangerous practice.” CANNHARYLAN CROPVALUE SHOWN Increase of $5,792,000 Re- vealed in Report of Federal Agency. Special Dispatch to The Btar. BALTIMORE, February 22.—The gross value of all crops raised in Mary- | land during 1929 was $65,688,000, a gain | of $5792,000 over the preceding year, according to the December estimates of the crop reporting board of the Ped- eral Department of Agriculture made | public by 8. R. Newell, agricultural statistician for Maryland. The total truck crops in 1929 were valued at $11,427,000, a gain of $4. 000 compared to 1928, when a value $7,335,000 was reported. Other crops for 1929 were valued at $54,261,- 000, or a gain of $1,700,000 over 1928. Melvin Stewart, seretary of the Mary- land Farm Bureau, pointed out that the figures did not show the expense of raising the crops, taxes paid, or previous crop losses. “In one section of the State I know of a good crop last year which did not | lquidate the deficits of several bad preceding years,” he said. A decline in both the production and acreage of corn was shown. In 1929 the report lists 525,000 acres in corn, producing 19,162,000 bushels, valued at $16,863,000. In 1928 there were 530,- 000 acres, producing 19,345,000 bushels, valued at $17,024,000. The yleld of 36.5 bushels an acre, the unit price of 88 cents a bushel and the average value per acre of $32.12 were unchanged for the two years. Wheat showed an increase from 530,000 acres in 1928 to 541,000 in 1929. The production in 1929 was 9.~ 468,000 bushels valued at $11,172,000, compared to 8,745,000 bushels valued at $11,106,000 the year preceding. A total of 50,300 tons of sweet corn was reported grown in 1929 on 38,700 acres. The value of the crop was esti- mated at $754,000. In 1928 the crop value was established at $745,000. An increase from 326,000 bushels of snap beans for table use in 1928 to 520,000 bushels in 1920 was quoted. The value of the crop in 1929 was set at $967,000 as compared to $326,000 the previous year. ‘The 1929 strawberry crop was valued at $2,391,000, compared to $1,546,000 in 1928. The value of market tomatoes for 1920 was estimated at $1,092,000, while that of tomatoes for manufacture was set at $2,257,000. JANUARY BUS.INESS HELD 92.5 PER CENT NORMAL Business will probably continue at the January level through the first quarter of the year, says the Brookmire Eco- nomic Service, with a probable decline in the second quarter. “Preliminary figures for January show a recovery in our business index to about 92.5 per cent normal. The figure for December was 89 per cent, showing & decline from 104 per cent in October. The January recovery apparent was not quite as great as expected. “The advance in the business index from the December low is caused by the sharp expansion in automobile produc- tion and the more than seasonal rise in steel .production and cotton con- sumption. Building construction shows a further decline, but still remains sub- stantially above the normal line.” Poles Get $40,000,000. NEW YORK, February 22 (#).— American money has made possible ex- tensive reconstruction of the Polish Na- tional Railways. In undertaking construction of 14,000 freight cars and 1,000 g:uenm coaches, the firm of Lilop, Rau & Lowenstein obtained $40,- 000,000 through the Standard Star Finance Corporation, a subsidiary of the Standard Steel Corporation. | ber, according to the Italy’s Flower Tnfifio«d. SAN REMO, Italy, February 22 (#).— Italy produces flowers mainly in this Riviera region, which sell at home and abroad for $16,040,000 annually. Cut flowers are the chief income Kroducm. More than 9,000 acres in the nation are devoted to flower cultivation, b RECOVERY CHANGES TRADER SENTIMENT ' Rapid Rise in ‘Stocks Be-| lieved Likely to Bring Some Reaction. BY CHARLES F. SPEARE. | Special Dispatch to The Star. NEW YORK, February 22.—While the decline in the prices of wheat and cot- ton, persistent for weeks and now ap- proximating the average of the depre- ciation in securities last Fall, has been given as the chief reason for the cur- rent reaction in stocks, it is the belief in Wall street that the rapid rise in speculatijve and semi-investment issues and the swift recovery of a considerable part of their losses has had most to do with the change in the market senti- ment. The extent of the recovery from the low levels of last November is graphi- cally indicated in the figures published by the New York Stock Exchange of the open market values of all listed shares on February 1. This does not cover the entire period when stocks have been rallying, for the high averages this year have only recently beer made. Extent of Rebound. The Stock Exchange survey, how- ever, gives sufficient proof of the re- bound when the figures for February 1 are compared wif those of earlier months to establish the fact that the | market had run into a weak technical position and that advantage of this was being taken by the professional bear crowd. Going back to September 1 it will be found that on that date the market value of all shares listed on the New York Stock Exchange was $89,668,276.- 854. Although the break did not begin until October 24 in the important issues there was prior to this a steady sag in & great many secondary shares so that on October 1 the market value of listed issues was down to $87,073,111,423. The heaviest losses in this month were in the motors, ofls, rails, merchandising, avia- tion and tobacco stocks, with public utilities showing a great gain as well as the issues of investment trusts and trading corporations. Figures as of November 1 represented the situation after the extensive declines on October 24 and October 20 and also the rally on October 31. On November 1 the market values were $71,753,650,908. On December 1 they were $63,589,338,~ 823, or about $16,000,000,000 lower than those of September 1. Only moderate gain was made in values during Decem- e Stock Exchange figures, but in January there was an in- crease of $4,300,958,398, making a total recovery from the low point on Decem- ber 1 of approximately $5,410,000,000. However, the compilation been made as of a week ago it would have | indicated that nearly one-half of the total depreciation in listed shares be- tween September 1 and December 1 had been regained. The size and the rapidity of this rally is what bear operators have considered their best ammunition in ml{l‘r‘l:' this week's attacks on the gen- eral list. Comeback of Utilities. e total depreciation in this group in the three Autumn months was $5,262,000,000, of which $1,500,000,000 has been recovered. Next to this fl'oup the largest gain has been in the shares of electrical equipment companies like General Electric and Westinghouse Elec- tric and has amounted to $600,000,000. Railroad and equipment company stocks have improved their market val- ues to the extent of $500,000,000, auto- mobile and accessory concerns $350,- 000,000, tobacco companies $175,000,- 000, food companies $1 ,000, inance companies $200,000,000, and amusement the | company shares $100,000,000 in spite of s the decline in Fox Film stock. (Copyright, 1930.) Tax Collections Drop. Income taxes collected durin, ary, both corporate and individual, totaled $31,040,484, which was $5,870,- 315 less than collections for January, 1929. Total tax collections during January also decreased under January of last year, ires bel espectively, $84,630,491 and $00,640, Receipts of miscellaneous taxes dropped only $139,636 under January of last year to make a total of $53,580,006. Janu- to | New York and Vacuum Oil shares, as INEW 0L MERGERS MAY- SOON FOLLOW STANDARD COMBINE $880,000,000 Deal Expected to Give Rise to Further Alignments. CUT IN OUTPUT DOUBTED BY OBSERVERS IN TRADE Greater Competition in World Mar- kets Seen During Coming Weeks. BY JOHN A. CRONE. Special Dispatch to The Star. NEW YORK, February 22.—Forma- tion of the $880,000,000 General Pe- troleum Corporation, second biggest oil concern in this country and third largest in the world, through a merger of Standard Oil of New York with Vacuum Oil Co, climaxes 2 week marked by falling crude oil and gaso- line prices and declining oil security quotations. The consolidation, from an oil trade point of view, is interesting not only because of its effects on world petroleum markets, but because it is the first marriage of two Standard Oil units of the trust dissolved by Supreme Court decree in 1911 and because it further breaks down the marketing territories of the former trust. Within the last week average prices of crude oil and gasoline reached their lowest levels in more than a year. Dur- ing the same period Standard Oil of well as their two chief rivals, Standard Oil of New Jersey and Royal Dutch, respectively, declined to record low quo- tations for the year. Hope for Better Market. ‘This merger, which joins the world’s greatest distributor of lubricants, Vac- uum, to the second largest American oll marketer, Standard Ofl of New York, has created hopes in the hearts of speculators for a better ofl share market. The combination may hasten a dozen or more pending consolidations. The oil trade, however, does not look for any decline in petroleum produc- tion or any lessening of competition as a result of this merger. The combine, since both of these firms are outranked by more than a half dozen producers in the United States, does not promise to bring about a solution to the present glut of oll. It is likely to bring about greater competition in both domestic and world markets. Royal Dutch Shell, which, it will be , battled with Standard Oll of New York several years ago in buying Russian crude and distributing it in foreign markets, may meet greater competition. Only recently Vacuum, which sung‘\:n«( New York Standard in its Royal Dutch fight, made some agree- ments with the Russian oil syndicate. Although Standard Oil of New Jersey recently acquired Anglo-American Oil Limited, a former foreign subsidiary of the original Standard Ofl trust, through formation of the Standard Oil Export Corporation, the Standard-Vacuum deal will be the first welding of two former domestic units of the trust. “As to the permissibility of a union of two former subsidiaries of the Stand- ard Oil Co. (New Jersey).” writes Her- bert L. Pratt, chairman of Standard Oil of New York, in a letter mailed today to shareholders, “counsel have advised that this tion was raised before the Supreme Court of the United States in the dissolution case and that that court held that after the subsidiaries had been freed from the control of the Standard Ol Co. (New Jersey), they would be en- titled to pursue any course of conduct lawful for any one else.” Invasion Moves. Several years ago the various one-time units of the Standard Ol trust began to invade each other’s marketing territory. Standard of New Jersey bought the Beacon Oil Co., thereby invading the marketing area of Standard Ol of New York. Standard Oil of Indiana, through Pan-American Petroleum, invaded many Standard Oil territories. Vacuum Oil, which had under the trust been solely a distributor of lubricants, became a pro- ducer of oil in Texas and a marketer in this State. Standard Ofl of New York, through Jurchue of General Petroleum Corporation, a California _producing company, invaded Standard Oil of Cali- fornia’s territory. These invasion moves are now expected to move at a fast pace as a result of this merger. (Copyright, 1930.) Austrians Eat More Rice. Austrians are becoming rice eaters despite the fact that the country pro- duces none. It comes from Italy, Brit- ish India and the United States. Amer- ican rice is rapidly increasing in popu- larity because of its attractive appear- ance and the fact that it is ao]‘:le in small sacks. “Not Social Club. NEW YORK. February 22 (#).— The Bankers' Club of America, in the heart of the New York financial dis- trict, with a membership of 2,200, is a business enterprise and not a ‘“social, athletic or sporting club.” The Court ipg o ROY A. YOUNG, Governor of the Federal Reserve Board, who was among the distinguished finan- clers at the banquet of the American Institute of Banking last night at the Ads PRODUCTION IS HELD EXCESSIVE FOR U. 3. CONSUMER DEMAND Exports and Imports in Jan- vary Throw Light on Buyer Situation. UNFILLED STEEL ORDERS FURNISH BRIGHT SPOT Merchandise Prices Sag in Sym- pathy With Decline in Raw Materials. BY JOHN F. SINCLAIR. Special Dispatch to The Star. ‘Willard. INVESTHENT BOND BUYIG LACKENS Market Still Digesting Recent Large Flotations—For- eign Group Off. Special Dispatch to The Star. NEW YORK, FPebruary 22.—There was a considerable slowing up in the investment market during the week. Some of this movement was attributable to increased activity in stocks during the early days of the week, and some was caused by the fact that the senior market is still digesting bond flotations put out in the past five or six weeks, The Chicago situation continues to affect the municipal market. During the week the total of new municipal offerings was negligible. The only issue of any size was for $10,600,000 City of Newark, N. J.,, 412 per cent bonds, which went at par, Foreign exchanges have been weak as a result of funds shipped to New York for investment, but this money was not in sufficient quantity to support the sagging investment market. A total of about $75,000,000 new issues was brought out, against $150,465,000 last week and $62,473,000 the week before. A considerable ning of new flotations is expected in the im- mediate future as a result of the pres- ent dullness. It is expected that the offering of the $500,000,000 oraso treas- ary financing that must be done to meet March 15 maturities will be put off a ‘week or so. ‘While the prime group held to its levels, or advanced fractionally, declines were general in junior railroad issucs and other bonds not rated as high grade. Traction issues were active at firm levels on the announcement that the Detroit Traction Co. had been granted an 8- cent fare. In the foreign department there was some activity in Chilean issues, at un- changed prices, as a result of the ar- rangement of a 60,000,000-franc loan in France. City of Berlin bonds de- clined as a sequel to the news that the city had been forced to pay nearly 10 per cent for a $10,000,000 bank ac- commodation. Weakness continues to be the chief characteristic of South American issues. Many of these countiries have had economic and consequently political troubles as a result of the world de- cline in commodity prices. Brazil's efforts to move out her coffee crops— she now has two years' crops to sell— have met with scant success and it is felt certain now that she will have to meet the market to take her loss. Par- allel, but perhaps not so acute, con- ditions prevall in respect to rubber, sugar, beef, minerals, wheat and other exports of South America. These conditions have been reflected in the bonds of all South American countries. A comparison of the differ- ent countries, as indicated by groups of their bonds outstanding in this market, shows that Argentine issues high of 97.68 in 1929, a low of 84.37 in the same year and a low of 8556 this year. A Chilean group stands at 92.25 against a high of 97.37 last year, a low of 87 in 1929 and a low of 91 in 1930. Uruguayan bonds average today at 96, compared with a high of 100 last year, a low of 91.87 in 1929 and a low of 93.25 this year. The decline is most pronounced in the case of Brazil, whose bonds still average over 20 points below their best levels of 1929. The average is 79.75, compared with the 1929 high of 100.18, a low of 72.81 in 1929 and a low of 75.53 in 1930. Colombian issues are almost as far below their high, standing today at 74.66 against their 1929 high of 9241 and lows of 65.33 in 1929 and 67.95 in 1930. The Peruvian average is 75.5 compared with 90, and a low of 68 in 1929 and 69 in 1930. Bolivian bonds are at 91, or 13 points below their best level of 1929. In 1929 they :’;n't!lx low as 76.75 and in 1930 touch- The fact that there has been re- covery fo this extent speaks well for the soundness of South American gov- of Claims has so held in exemgnnx it from a 10 per cent tax for such clubs. ernments. (Copyright, 1930.) A picture of George Washington as the country's first outstanding business statesman with a score of business in- terests as far-reaching as any of the present-day captains of industry was presented last night by Merle Thorpe, editor of Natlon's Business, in a radio talk over a Nation-wide hook-up of the National Broadcasting Co. “Everywhere,” Mr. Thorpe said, in part, “there is evidence that Washing- ton was a highly successful business man. He was a banker; he was an engineer; he was interested in trans- portation, both highway and waterway; he was a manufacturer; he applied science to his farming problems; he was & real estate dealer and one of the first large scale American exporters. “He was the first to understand and late our national opportunity in development of the West. He was first Virginian to see that tobacco was played out because the land was worn, and to meet his farm problems P asington. M. Thorpe poin Wi n, Mr. The ted out, kept a careful record of his business transactions and used a system of “cost accounting” which was quite unusual in those early days. “There is scarcely a problem which Washington’s Business Acumen Praised By Magazine Editor in Radio Address| transportation, public lands, agriculture. One lesson he gave us. As a business man he studied both sides and had tolerance for both sides of every ques- tion. If we have our present prohibition troubles, Washington had his Shay's rebellion. And the fanatical ‘wet’ and the fanatical ‘dry’ could profit greatly by studying the moderation and toler- ance which characterized Washington in_the days of the whisky rebellion.” Washington’s experience as a prac- tical business man, Mr. Thorpe de- clared, enabled him as the first Presi- dent to give form . d direction to the eminent position America has reached today in industry and commerce. “Wash- ington,” he said, “stood out against government in business, and clearly defined our philosophy of private enter- prise as against Government competi- s Clubs Start Farm Careers. EAST LANSING, Mich., February 22 ()—Michigan 4-H Clubs seem to start farm careers. Ninety-six former mem- | bers of boys and girls' clubs are fresh- men at the State college here. Thirty- Wasl . faced which we do not face g, in different forms—finance, two of the boys are specializing in agri- | culture, 14 of the girls in home eco- ' nomics, % stand today at 89.43 compared with a ! NEW YORK, February 22.—"How about business? Do the figures indicate a business recovery? Give us the facts,” writes a Georgia reader. This correspondent, who evidently likes figures, probably knows that the United States exported $487,956,000 in January of 1929, as against $417,000,000 this year—a drop of more than $70,000,~ 000; imports were $368,336,000 in Jan- uary last year, as against $312,000,000 this year—a drop of more than $56,000,~ 000. So both imports and exports are off. Bank debits for January, amounted to $82,845,000 as agai 454,000 this year—a decrease again of $22,391,000. Building construction, ac- cording to F. W. Dodge, has declined from $409.967,000 in January, 1929, to 1$343,975,000 last month. Auto production showed 402,154 units |a year ago January, as against a pre- liminary estimate of 290,000 in January last; the United States consumption of cotton was_ 668,386 bales in January. 1929, and 577,235 bales for January this year. Pig iron production in January, 1929, amounted to 3,442,000 tons and 2,827,000 last month. Steel ingot production amounted to 4,490,000 a year ago and 3,786,000 this year. But the unfilled steel orders at the end of January one year ago were 4.- 190,487, and 4,469,000 this year. This is the bright spot. With very few exceptions, the prices io( merchandise have tended downward since January. The decline in exports has hurt both business and agriculture. Harry W. Hosford of Cleveland states the situation in a nutshell when he says “there is more merchandise being pro- duced than the public can consume.” Natural Gas Business. Probably the largest distributor of natural gas in the world is the Columbia Gas & Electric Co., with 63 4 |its revenues derived from luc- tion and distribution of gas. The consumption of natural gas has increased 408 per cent during the last 24 years, and at present it represents about 75 per cent of the tofal gas pro- duced. With the development of a L!- ter quality of pine, which resists rust |and corrosion and prevents leakage, the natural gas business has jumped ahead. The more recent movement to con- serve the gas of the oil wells has like- ~ wise had its effect, because natural gas as a fuel has twice the heating value of coke oven gas, its closest competitor. Of all the natural gas produced last year, 80 per cent was diverted for in- dustrial purposes and only 20 per cent went into domestic use. Columbia Gas & Electric’s big gas fields are in West Virginia and Ohio. In the next year or two the extension of pipe line into the leading industrial centers of the Eastern seaboard is expected to be very rapid, parelleling the expansion of the electric light and power industry during the past decade. The electrical industry will continue to grow and develop, but the gas fleld is only in its infancy. Merger Idea in Sweden. Ivar Kreuger of Sweden, head of the firm of Kreuger & Toll, has gone a long way in business since he landed as a green country boy in New York looking for a job and experience. The merger idea in Sweden began 21 | years ago when Mr. Kreuger, who with {his_partner. Paul ‘Toll, combined 11 Swedish factories into the United Swed- ish Match Factory. Then in 1917 he Jjoined all the important match com- panies of Sweden into the Swedish | Match Co. Now, in order to obtain match con- cessions in the various countries, it is the custom of Mr. Kreuger to make a loan to the various governments at rates much more favorable than can be:ob- tained from the bankers. A short time | ago he loaned $125,000,000 to Germany, while bankers were dublous about the | proposition. But he got the match | monopoly for all Germany, which, over | & period 50 years, is a most valuable concession. Already Mr. Kreuger has loaned va- rious European governments more than $300,000,000 and stands today as the moc‘td powerful match figure in the world. No American “Peasants.” Bertrand Russell, British philosopher and writer, after a personal swing about the United States, sees a vast difference b;_tween the South and all other sec- tions. The South, he views as agricultural, aristocratic and retrospective, while the rest of the country he calls industrial, democratic and . praspective. “A peasant as he exists in Europe and Asia js practically unknown in the | United States. This is an immense boon to America and perhaps its most im- portant superiority as compared to the old world, for the peasant everywhere is c!rue: avariclous, conservative and ineffi- clent.” This British philosopher believes that the civliized world will continue to be- come more standardized and mechanized and that these two forces together will make “internationalism become easier as the differences between nations di- minish."” * It is upon such an emphasis that American industry has rendered its most v:_lllunhl: service, according to Mr. Rus- s 1029, st $60,- Gold Port Tax. The port of Rio de Janeiro charges a 2 per cent gold tax, payable on all shipments in and out. The port of g-mu. its competitor city, has no such X. So Rio's trade is diminishing and San- tos’ is increasing. A commission ap- pointed to -investigate found that the 2 per cent tax had already paid for the cost of constructing the Rio port. Then why not abolish the tax? ot 80 easy. The tax will probably remain as long as the present concessionaires continue to operate the port. Rio, in the meantime, finds the tax, paid in paper, represents about 9 per cent of the official value of the merchandise clearing the port. World shippers, other things being A . by the Nor O Newspaper Alllances® Amriesn