Evening Star Newspaper, April 6, 1930, Page 77

News of Markets Pages1to S INCREASE DEPOSITS SINCE STOCK BREAK Gain of $1,087,574 Shown Over December 31 Figures, Auditor Savage Reports. STEADY UPWARD TREND IN SAVINGS INDICATED Capital’s Institutions Make Better Showing on Call Than Those in New York. BY EDWARD C. STONE. ‘Washington banks are making up the losses in deposits which they suffered following the New York stock market crash, as reflected in the bank state- ments of December 31, 1929. Local bank deposits revealed a gain on the March 27, 1930, call of $1,087,~ 574.08 over the December figures, ac- cording to an official compilation com- pleted yesterday by Audley A. P. Savage, auditor of the National Savings & ‘Trust Co. ‘The national bank group showed an aggregate gain of $3,138,840.10 over De- cember returns and the savings banks group reported an increase in deposits amounting to $1,295477.40. The trust companies, however, fell down to the extent of $3,346,743.42, much of this decrease being explained by the fact that the Continental Trust Co. deposits have been switched over to the national bank column. Upward Trend Gratifying. ‘The main point brought out by the latest official statement is the fact that the trend in local bank deposits is up- ward. While a gain of over $1,000,000 is not to be considered lightly, yet the turn in the tide is more significant. The business tide has been way out and still is way out, yet the bank de- posit tide seems to be running in now at a fairly satisfactory rate. Washing- ton has made a far better record than New York, which has just reported a falling off in bank deposits since the December call. ‘The highest bank deposits on record in Washington were reported after the call of October 3, 1928, when the fig- ure totaled $274,233,831.27. On the call of a few days ago bank deposits in the Capital totaled $256,870,920.93. The total on December 31, 1929, was $255,- 783,346.85. On October 4, 1929, deposits ‘were $269,589,885.64. On June 29, 1929, thev amounted to $264,479,938.06, and U ..cu 27, just a year ago, they totaled $268,200,277.86. The tabulation of Mr. Savage ap- | pears elsewhere in The Star's Sunday financial section, presenting in detail & most interesting comparative state- ment covering every bank in the city. Leaders in Various Groups, In the national bank division, Riggs had "the largest increase over the De- cember call, in the savings bank group the Potomac Savings Bank headed the list, while among the trust companies the National Savings & Trust Co. noted the largest deposit increase The report of the Commercial Na- tional Bank includes for the first time the deposits of the Continental Trust Co., the consolidation of these two banks having taken place since the lasr call. The bank showed an in- Gicase of $874,957.44 which President Cooper said would have been much larger had not the Commercial deposits on December 31 been about $1,500,000 excess of their normal amount around that period. Some of the other banks which had particularly good gains in December also failed to keep up the pace on the March 27 call. Young Favors Branch Banking. Many of difficulties now confronting tural districts in bank failures would have been avoided had trade area branch banking been permitted years @go, Governor Young of the Federal Reserve Board, told the House bank- ing and currency committee. He agreed Wwith a member of the committee that the biggest argument in favor of branch banking was that the banks in a sys- tem would have to go to the assistance of any one of the members which were experiencing & run by depositors or any similar distressing condition. He added there was less likelihood of & run on a bank in a branch system than on an_independent unit bank.” Discussing the Pole plan for trade area branch banking, Mr. Young ad- initted there was some difficulty in de- termining the limits of Federal Reserve districts. " That difficulty, he said, arises * Zrom the overlapping of districts, He saw no serious situation which \ might develap and believed that the ) 12 Federal Reserve districts with the 25 branch districts comes as close as s practicable to limited trade areas. Wall Street Giants Pictured. Richard D. Wyckoff, best known in ‘Washington as editor of the Magazine ©of Wall Street, is author of a book re- cently published by Harper & Brothers under the title, “Wall Street Ventures and Adventures,” which gives some in- teresting pen pictures of such legendary figures as Morgan, Harriman, Livermore, Schwab and John W. Gates. Mr. Wyc- koff writes most entertainingly of some of the worst panics and sensational booms the Street has known. In his younger days he made a close study of the methods by the leaders in the mar- ket as he was himself in the brekerage business at the time. Everybody knows there is a tremen- dous amount of manipulation in Wall Street in these times. But fortunately the market has grown and business ethics have tmproved until no one man can bring about such startling corners and breaks as was done in the old days. The book recalls the evils of over- extension, names the important points about a stock which influence its rise and fall and includes many ofher facts of intenest to all traders. Perhaps, how- ever, his anecdotes are the best part of his book. Saturday Trading Quiet. Trading was very quiet on the Wash- ington Stock Exchange yesterday, the folowing transactions having taken mac Electric 5%% pfd.—1 at 108%, Mergenthaler Lirotype—10 at 107%. National Mtg. & Inv. pd.—100 at 4k, al ‘ash Rwy. & Elec. 45—$1,000 at 88Y4, $1,000 at 88%;. Washington Gas 65 B—$100 at 1043, $100 at 104%. Potomac Electric 512% pfd.—5 at 108% Marchants’ Bank & Trust Co.—10 12515, Lpcal Trade Keported Better. Some Wi n merchants are look- ing for a“mwmdylmprovemem in local business during the rest of the year. One merchant said yesterday that his March sales were the largest in the his- tory of his business, even far ahead of the December period. Myr. Fleming Comments FINANCIAL AND CLASSIFIED he Sunday Star WASHINGTON, D. C., SUNDAY MORNING, APRIL 6, 1930. pect on Happenings in the World of Finance and Interprets Their Meaning With Relation to Events of Other Days. BY I A. FLEMING. New Yorkers, graduates in the fleld of public utilities, know how to go about obtaining from utility commis- sioners, common councils, mayors and governors that which they w(nm.. Appropos of con=- ditions that have existed for many years and will, in all probability, be radically changed in the not distant future: ‘Washington Gas Light Co. was in- corporated by act matter of some 76 years ago. In the m’t‘erim be&ween then and now S —— numerous attempts have been made to secure permission of the lawmakers to increase the stock of the corporation in order to finance ex- tensions and improvements. The city has spread out all over the District and even into Maryland and Virginia and the chief fuel for cooking purposes has been gas during all the intervening years. Pipes have been laid by the company in every direction east of Rock Creek, not financed by new stock issues as cus- tomary with stock corporations, except one increase of $110,000, but by certifi- cates, “exchangeable for stock if the Congress of the United States should ever permit an additional stock issue,” | but matured and paid off long ago. | Bond issues of a very limited amount | W! were used to finance betterments—in all $10,756,500—modest ‘capital in- creases, when it is remembered that the stock has never been over $260,000, | par value $20 a share, on which 18 per | ulmr}c dividends have been paid for some time. They All Tried to Get Increase. Every executive of the company through the corporate history of the | company tried to increase the stock, but Congress stood pat—on gas at least. Last year the control of the company was sold to some gentlemen from New York, representing a utility interest. Georgetown Gas Co., also chartered by Congress July 20, 1854, with terri~ tory west of Rock Creek set aside for its field of operations—truly a restrict- ed business opportunity for many years, but today one of the most promising with its population increasing every day. It had capital of $150,000, and was al- ways more or less controlled by the Washington Gas Co. Has Owned It for Years. The Jatter has actually owned all of the Georgetown’s stock for many years, | aying rather high prices for the last | ew hundred shares. There was a law | against another corporation owning con- trol, but it was aoquired and held just the same. The Washington Gas Co. has been | trying for years to secure permission to merge the Georgetown Gas Co., to take it over as a measure of economy, but | was blocked at every attempt. New Yorkers Look Like Winners. Right now it looks as if the new owners, who acquired control of Wash- | ington Gas by purchase at $125 a share and less, have impressed the desirability of increases in the capital stock of the company as may be needed for the proper extensions of service and for the merging of the two gas companies, giv- ing, therefore, if Congress agrees, a cut in the price of gas. Just how important this concession will be to consumers remains to be seen, STEEL CONSUMPTION EXPECTED TO GAIN Seasonal Increases Are Declared | Likely in Some Lines of Trade. 8Special Dispatch to The Star. PITTSBURGH, April 5.—Steel de- velopments of the week have not been definitely favorable as to tonnage, while they have been unfavorable as to prices, declines being again decidedly in evi- dence after a couple of months during which there was no more than a little softening. Conditions all around are decidedly peculiar for this date in the year, when ordinarily mills have quite a backlog and prices are steady. In the last few weeks there has been no distinct change in the general rate of steel production. Steel ingot pro- duction has averaged slightly over 75 per cent of late, having come down from a peak rate of about 85 per cent at the middle of February. Precisely why that peculiar bulge occurred will probably never be explained. Jug by mill backlogs, which are light, production is hardly likely to hold its recent rate, but that is hardly a criterion when buyers all down the line have been so conservative. Sea- sonal increases should be expected in some lines of steel consumption, but others may lose part of their momen- tum. AUTO OUTPUT AHEAD OF FIGURES IN 1928 Producers of Low-Priced Cars Get-' ting Still Firmer Grip on Business. While running considerably under record figures of 1929, the production of motor cars thus far this year is still ahead of 1928 figures, according to this week's United Business Report. The producers of low-priced cars have succeeded in an even firm- rfices “Than they had st oo o n year, the sales of cars thus far this year, Ford has succeeded in 36 per cent of the total, compared with 33 cent last year, and Chevrolet is credi with 28.5 per cent, compared with 22 per cent a year ago. Ford and Gen- eral Motors combined do approximate- ly 74 per cent of the total automobile business, the remaining 26 per cent be- ing accounted for by about 20 less im portant manufacturers. It must be borne in mind, however, but that it will make a great differ- ence in the ncome of the manufactur- ing corporation is not at all probable. Cuts in the cost of electric current from time to time have been steadily fol- lowed by increases in the manufactur- ing corporation’s earnings. Ot course there is the })umblmy of a slip or a blocking of the entire plans of the gas corporations, but at this writing the chances seem to favor enactment. That the interests controlling the corporations are satisfied with the out. look and are not expecting a check- mate is further evidenced by the re- tirement of Ord Preston, one of the most_efficient presidents the company has had, who has been president since the retirement of Howard Reeside. Mr. Preston was a very large shareholder and his action forced the new owners to pay $125 a share for all the stock- holders cared to liquidate. Mr. Pres- ton was not forced out, but did the forcing—and retires to give attention to large personal affairs. Looks Ridiculous. ‘That a gas-producing corporation serving the greater part of Washing- ton, a city of over 500,000 population, should be restricted to a capitalization of $260,000 is itself preposterous. It has all the appearance of being the best melon in the garden, and it will be worthy of comment, if the New Yorkers do not give evidences of their great ability in inflation of gas stock— Im;: prices, although that may come ater. The Railway Situation. Local capitalists in harmony with a few Philadelphians furnished the medium for the merger in one cor- poration of all the public utilities of ashington. The Washington Securi- ties Co. was organized and before the matter had become common knowledge a large quantity of the common stock of the Washington Railway & Elec- tric Co.,, had been acquired, some of the shares at high prices. The late Senator La Follette threw a marlin spike into the plan with his amendment preventing any utility company from holding, or acquiring more than 20 per cent of the capital stock of any other local utility com- a. ny. ‘Washington utilities, checkmated thus | early in its career, was forced to the wal Creditors, bankers of Washing- ton, acquired large holdings of rail- way common very cheaply and, not being speculators, resold to a New York corporation at the same low price, $61.50. That stock is now worth $600 a share bid. Merger Attempt Fails. Another merger attempt went by the board, being fought to a finish before Congress and the utility commissioners. Just at this time the trend is toward a consolidation of the street railway companies under the title of the Capi- tal Transit Co., the old-time favorite, Capital Traction disappearing, the ‘Washington Rall Co. exisfing as the holding corporation. It is reported that the Pepco com- pany will not be in the combine, so that rallway common shareholders may get a reward in big dividends. All the common stock of Potomac Electric, but a few shares, is pledged to guarantee an $11,613,000 4 per cent bond issue known as Rallway 4s, due 1951. Looks Likely. Here again there’s a chance for a slip-up between expectation and con- summation, but if it goes through, credit will once more have to be given New Yorkers—local talent couldn't do it. Suggested compensation for permit- ting this merger are existing passenger rates for 18 months, concessions in children’s fares and some minor mat- ters. Holland Cabbage Shipment to Fill Empty U. S. Larders Special Dispatch to The Star. BALTIMORE, April 5.— For the first time in the memory of commission men here Dutch cab- e being brought to this country and thousands of baskets were unloaded from ships this week. Commission merchants say the circumstances arises because of a shortage in the American supply, and the country has been forced to reach out as far as Hol- land for its cabbage, they say. ‘The millions of tons of Winter cabbage produced in the United States and harvested last Fall have been consumed. Now, along water front may be seen beasing Dutch export tags, Wich export, tags, whicl have to be passed by United States custom officers, as the vegetable is subject to duty. “It is the first time in history that the American cabbage mar- ket has been sold out,” a com- mission man said. “Of course, there is new cabbage coming from the South, but we have usually had the fine, old stock with us until May. I don’t know what caused a depletion in the market, other than that the American people are eating more g:l;bnge products than ever ore.” REDUCTION IN WHEAT - ACREAGE IS URGED Meetings Are Being Held in Mid- west to Prevent Over Planting. | Special Dispatch to The Ster. 3 ? KANSAS CITY, Mo, April 5.—While | Percolators and Washing Machines a decrease of $13,000,000 in deposits in the past three months is shown by the national banks of this city, this is noth- ing exceptional, for the same percentage ot'dec:’;u is ced mp‘the rural banks of the interior and to a degree is seasonal. ucing country 1.t e el 0 0 e . i are having a strong demand that competition is severe and little likelihood t}l h&mflb even oaching those of year ;:r'" isolated instanqgs. Meetings there is L m‘fim WEST COAST GAINS STEADILY IN TRADE REVIVAL PROGRAMS Business Becoming Stabilized Under Influence of Better Credit Conditions. RECENT MERGERS ASSIST RETURN TO PROSPERITY Opening of Natural Gas Fields Ex- pected to Benefit Bay Distriot. BY CHARLES F. SPEARE. Special Dispatch to The Star. SAN FRANCISCO, April 5.—During the hectic period of stock market spec- ulation last year one brokerage house with wide connection on the Pacific Coast did a dally business of 400,000 shares, which is evidence that people in San Francisco and Los Angeles and in between are not unlike those of New York, Chicago, Boston or Detroit when the seasons of easy money making in securities come around. This, however, was a higher per- centage of the total daily turnover of that period than is being shown today, for while the Pacific Coast is following the share lists carefully and respond- ing to some of the “tips” that come over the wires, it is skeptical of the present rise and has been taking advan- tage of this week's advance to & new high point in utilities and rails to real- ize profits. is simply represents a cross-section of the attitude of the country, which has seen in the last two months a trebling in New York Stock Exchange sales and an advance in all three of the major groups of stocks to the highest average since last November, Put in another way, there has been & recovery of 45 per cent in the indus- trials, of 63 per cent in the public utilities and of nearly 25 per cent in the rails from the bottom of the trough last Autumn, Business Trend and Outlook. In no other direction has there been improvement comparable with that in junior securities. It is beginning to be recognized in this part of the world, as elsewhere, that while business is better in fact and in sentiment than it was in January, it has not moved shead in March and in the first week of April in proportion as it had been expected to do under the stimulatiing effects of low money rates and rising quotations for stocks. ‘The first quarter of 1930 has passed and has been one of stabilization. The second quarter now being entered should reveal the benefits to industry of a si: month rest from a prolonged specul tive spree and from -estrictive policies, both as they apply to the production of mechandise and to the expansion of manufacturing and distributing facili- tes. Although this Federal Reserve dis- trict has experienced less effect from the national business and speculative disturbances than any other, and is one of the “white” spots on the commercial map, bankers here are frank to say that they look for a slow improvement. because they believe the country is still overstocked with goods and also on the historical ground that there never has been a quick rebound from a decline of such proportions as we have recently witnessed. The urge of cheap money ;.o speculate shows its results in rising oans, 2 Steady Progress on Coast. San Francisco is proverbially a con- servative town, and no more so than in her busniess life. She is inclined to be slow in taking advantage of her facilities. One finds in her steady progress, but no overdevelopment or overpricing of values. Like the rest of the Pacific Coast, she has witnessed in the past 10 years—more especially in the last 6 years—a rapid change in her industrial life, as increasing population has encouraged the setting up of fac- torles for the fabrication or assemblin of articles consumed in this territory or to be shipped to the Far East. There can never be complete eco- nomic independence in California, as she is too far from the supplies of raw materials such as make great industrial centers possible. Each year sees many additions to the list of companies that provide the people of this State with their daily needs and their luxuries. A great spurt in this direction is pre- dicted with the opening up of the nat- ural gas fields in the Kettleman Hills district. . The Kettleman Hills district means to San Francisco what those of Signal Hill and Ventura have meant to Los Angeles for many years. The spirit of combinations and new financial or corporate alignments has become A}ulu strong on the coast and brought forth this week the big merger of North American Co. properties with those of the Pacific Gas & Electric. The United States Steel Corporation and the Bethlehem Steel Corporation have within a few months absorbed the two leading iron and steel manufactur- ing plants on the coast. There is daily gossip of mergers of food and dairy companies, shipping lines and chemical manufacturers. Out of the present oil situation is bound to come the elimina- tion of a number of the smaller pro- ducers who have been a thorn in the flesh of Standard Oll of California, the Union, Shell and other large producing and marketing concerns. (Copyris.t. 1930.) ELECTRIC IRONS TOP SALES IN APPLIANCES Next in Popularity in 1929, Recent Survey Shows. Heading the list of electrical - ances sold during the uund-rq;'&x 1929, according to a survey of a large ctrical com| of various from 13.7 to 16.4 per|fas . Automat sol home customers. ic_heat- rercaben oo, 44 15 1% s Bouse heating intallations increased from 166 to 352, or 112 per gent. FOREIGN BUSINES DISPLAYS FIRMER TONEDURING WEEK Indications of Spring Revival Are Seen in Various Countries. COMMODITY PRICE DROP HAS DEPRESSED TRADE Cheap Money Acts as Aid in Re- storing Confidence in Outlook. By the Associated Press. NEW YORK, April 5—Cable dis- patches to the Business Week give the following survey of business abroad for the week ending April &: Europe—Relatively speaking, busi- ness is improving. Winter's accumula- tion of purchasing power has this year been seriously curtailed by evaporation and fall of commodity values. With this evaporation profit margins, both agricultural and industrial, have been lost. Unemployment has reduced wage savings. More goods and less wealth to buy them have resulted. Absorption must precede revival, and this will take time. On the other hand, there are indications that price levels have hit bottom and are hardening. If present cheap money were withdrawn, the gloominess of the business outlook would be accentuated to the depression point. Given the relaxation now in course, further recession of activity is not expected, but it is unlikely that sea- sonal recoveries will approach last year's exceptionally high rate, or more than equal 1928 business volume. Great Britain.—Business sentiment is more irregular. If it is less buoyant than during the past two weeks, when successive bank rate reductions encour- aged greater optimism than probably was substantiated by actual conditions, the extreme pessimism of preceding months. Once the budget uncertainties are removed, the tariff policy an- nounced and the tax burden established, there will be a real opportunity for a careful stocktaking of realities. The past fiscal year closed April 1 with a deficit of $72,000,000. Estimates for the coming year forecast the necessity of $200,000,000 additional revenue, but the actual extent and the kind of increased taxes cannot be known before the bud- get bill is announced, April 14. Unemployment Problem. Unemployment, now 1.622,000, has | reached its peak since 1922, but indica- tions of seasonal revival now are more apparent, with relatively cheaper money and renewed long-term capital activity favoring enlargement of consumption, particularly of goods for capital ac- count, such as building and plant ma- terial and machinery. More plentiful money also will enable industry to con- tinue to reorganize and take advantage of any trade expansion. ‘The textile industry faces new labor problems. Wool operatives may strike as protest of the Macmillan Commis- sion findings involving 9 per cent wage cut. Cotton operatives are disturbed which will go far toward enabling in- dustry to recover its competitive position with eventual benefit to the unemployed in the textile industry, now the largest category of Britain's workless. Germany.—The new Bruening cab- inet, composed of bourgeois elements, represents the badly needed “business man’s government” but, unfortunately, it is politically sandwiched between Socialists and Fascists, and is depend- ent for a majority upon the moderate wing, the German Nationalists. Despite the fact that the new cabinet includes three new ministers who voted against the Young plan, Bruening and Curtius promise continued adherence to the plan. Inclusion of Herr Schiele, noted agro-economist and leader of the Nationalists, as food minister may age still more radical farm relief measures than the tariff increases passed last week and already effective. Attention already is focusing on the ambitious program of de-taxation and credit relief for East Prussia. The new minister, Bredt, leader of the so-called Business party, forecasts the possi- bility of early partial de-control of national artificial rent restrictions. An international consortium, which includes Lee, Higginson, will advance credit totalling $116,000,000, first part available early in April, the second in reduction of the floating debt and eas- ing of the immediate tight position of the treasury. Despite the political crisis and little, if any, seasonal activity, busi- ness is somewhat more optimistic due to the renewed foreign participation in the bond market, the success of the $20,- 000,000 Rhine Westphalian issue floated in New York, and the expectation that credit forthcoming will relieve the money market of the constant pres- sure of government borrowing. Commercial failures still continue at a high level and this week include out- standing Hamburg leather firm of & Rasmussen, with liabilitles of $4,- 000,000 and involving 16 German and British banks, Situation in France. FRANCE.—Business is confident, not- withstanding reports of decreased activity in some trades and failure of the Senate to pass the budget bill be- fore expiration of the fiscal year end necessitating recourse to provisional monthly appropriations at least for April. Preliminary announcements of proposed detaxations cause some confi- dence. As a result of successive false starts, the stock market, under efforts of professionals to break public specu- lative lethargy, has petered out. It is believed the government is desirous of holding the market confident, but in sus till it is determined what dis- tion it desires to make of the Young nds, expected to be issued in May. There is a probability that the total of $100,000,000, ’s share, will issued to the federal debt sinking fund basis for exchange conver- ding 5 per cent and 6 cent domestic bonds. Meanwhile d issues, though below the Feb- continue to absorb capital, for the past 15 months now Short- YORK, April 5 (#).—The Commonwealth Utilities Corporation ired control of the St. Louis County Water Co. through the of 75 per cent of the outstan: mon stock at $225 a share. The total assets of the St. Louis County Water Co. are listed as $10,000,000. there is no tendency now to revert to | over the proposed extension system ex- | pected temporarily to displace labor but | mid-June, thus permitting substantial ; 's | average of the eight active issues bels be | highest levels in two years * government bon able Classified Pages 6 to 13 OTTERBACK, ANACOSTIA BANK HEAD, STARTED AS MESSENGER Widely Known Financial Fig- ure Observed 63d Birth- day Last Week. Became Cashier of Institution When It Was Founded 20 Years Ago. From messenger boy to bank presi- dent s the life story of Maurice Otter- back, president of the Anacostia Bank, who celebrated his sixty-third birthday on April 3. Two other events are also combining to make the present time of particular concern to the “Mayor of Anacostia.” His bank showed a sub- stantial increase in deposits on the last controller’s call and the institution will be 20 years old in May. Educated in the Washington public schools, Mr. Otterback became a mes- senger for the National Capital Tele- phone Co., later absorbed by the Chesa~- peake & Potomac Telephone Co. He soon became assistant chief operator, but resigned in 1891 to become note teller in the National Capital Bank. In october, 1907, he gave up that posi- tion to Hecome manager of the Ana- costia branch of the Union Savings Bank. His next mave was to assist in the organization and become the first cash- ier of the Anacostia Bank, which start- ed its successful career in May, 1910. Mr. Otterback was elected president of the bank in June, 1918, and has been at the helm ever since. The bank moved into its own building in July, 1925, and is still doing business in this fine home. Mr. Otterback is a director in the National Capital Insurance Co. and the Eastern Building & Loan Associ- MAURICE OTTERBACK. ation, and a trustee of Sibley Memorial Hospital and the Swartzell Methodist Home for Children. He is a member of the Chamber of Commerce, Board of ‘Trade, Association of Oldest Inhabit- ants, Anacostia Citizens' Masonic Order and Trinity M. E. Church. His son, Raymond E. Otter- back is employed by the Union Trust Co., having also selected banking as his profession. Maurice Otterback never misses a District bankers’ convention. As the expression goes, “He spins a wicked top.” At the convention when the Mc- Lean Cup was captured by Howard Moran and J. Frank White, the Ana- costia banker's scores almost upset the spinning honors of the other well known local financiers. INVESTMENT BOND ISSUES MARK TIME! Demand for Fixed Income Se- curities Quiets Down Dur- ing the Week. Special Dispatch to The Star. | NEW YORK, April 5.—The lull in the investment market continued during| the past week. It was accepted by Wall Street as a temporary halt in the money rates is to be terminated soon. | Bond prices declined and advanced | by minute fractions in rather quiet mar- | ket sesions, the only serious reverse | being in the foreign department, which | was affected by profit taking. An average of 50 issues typical of the | entire list ended the week at 94.07| against 94.24 the week before, or vir- tually unchanged. This was the natu-| ral result of the continued low levels of money rates. Time money, which opened the week at 3% to 4 per cent, | hardened around the 4 per cent rate in midweek, and bankers’ acceptances | crept up an eighth from their lowest quotations. This move in money, if it can be called a move, had hardly any perceptible effect on the list. World Trade Conditions. | International conditions bearing on| the money market and bond prices| showed no important change during the past week. Commodity prices, the wide decline of which aided the bond market's advance of three weeks ago, seemed to be on the way to recovery. Sweden and Switzerland reduced their | | bank rate, but this, in view of the re- | tention of the London and New York rate at their present levels, was taken merely as’ an adjustment to previous cuts in rates. ‘There was a total of about $100,000,- 000 of new issues compared with $150,- 000,000 last week and $210,000,000 the week before. Since a good half of this week's offerings was municipals, the sit- uation in that market has been relieved somewhat. White muncipals are still go- ing over the counter at their best quota- tions since 1928, the addition of $50,- 000,000 to the dealers’ scant supplies prevented what promised to be a scar-| city. All of the issues were small and with the exception of two Canadian issues no foreign borrowings were re- corded. The steadily diminishing flood of new flotations, which was inspired by the extremely active market of mid-March, has helped dealers to distribute the supplies on hand. Decrease in volume of bond trading to the $10,000,000 level on the Stock Exchange also has bene- fited the market. Thus the market’s technical position has been improved. Undoubtedly, a good portion of the $750,000,000 paid in dividends and bond interest at the end of March found its way into the investment market. Government Group. U. S. Government obligations made small advances during the week, the 103.742, compared with 103.636 the weel before. Since the legal rails and public utilities paralleled this improvement during the latter part of the week, in- stitutional buying was indicated. The prime rails ended the week at an aver- age of 94.73, compared with 94.91 the week before, and 10 high-grade public utilities stood at 99.61, compared with 99.87. A group of 10 industrials im- proved from 85.28 to 85.67. Ten junior railroad bonds stood at 89.63, as against 89.96 the week before. ‘The average of 10 representative for- eign bonds ended this week with an average of 100.71, compared to 101.16 the week before. This drop was chiefly occasioned by selling of South Ameri- can, German and Central European ob- ligations. In connection with the drop in German bonds, it is pointed out that such an issue as the German repara- tions 7s have been pushed up to their in prepara- tion for the first installment of the new reparations bonds to be put out in May German reparations 7s went to 109%;, an advance of more than 3 points from the low of the year. They dfl?ped holders sold to over a int when Similarly, some been to new highs in order to bring out new issues, and they subsequently slumped with !h:nflnfl distribution of the later offerings. In connection with the issues, advices from London had tively allotted io it. The total of $300, 000,000 will now be divided, roughly, follows: Paris, $200,000,000; London, $25,000,000; New York, $50,000,000. and Huge Natural Gas Supply Will Turn Wheels of Trade Great Midwest Project Marks Change in Trend of Fuel Distribution. BY J. C. ROYLE The millions of cubic feet of natural gas now being wasted are likley to be employed as a result of the current trend in fuel distribution. The latest and largest project along this line has made this evident to fuel men, public utilities heads, Government offi- cials and industrial leadcrs alike. advance of fixed income securities to| “'“This move was the starting of work | higher price levels, rather than as an' on construction of parallel gas lines | indication that the period of cheap from the Panhandle field of Texas to| the manufacturing centers of the Mid- west. In this project some of the largest utility interests and oil and gas produceys are associated. They include the Cities Service Co., Standard Oil of New Jersey, Texas Corporation, the Insull interests, Columbian Carbon Corporation, Phillips Petroleum and Skelly Oil. A 1,330-Mile Project With various extensions these lines will have a length of 1,330 miles. It is the most ambitious project yet under- taken, although other long lines to the Southeast and in California already are in operation. Many large manu- facturing centers will use natural gas fuel for the first time as a result. Goverment officials see in the move a trend largely in industrial fueling. It is realized, however, that natural gas, either mixed or unmixed with the manufactured product, can and wil be used for domestic purposes in the districts served. Federal fuel special- ists estimate that gas to be delivered from the Texas Panhandle can prob- ably be purchased at from 5 to 10 cents a thousand cubic feet. The cost to consumers varies, but for domestic uses it is placed at about $1 a thousand cubic feet. ‘The two parallel lines just started, it is estimated, will cost approximately $100,000,000. But while the outlay is enormous there seems to be a fine mar- gin of profit for the project, with a corresponding profit to the consumers in the form of reduced rates. The Bureau of Mines has no data as to the | V. cost of transportation over such dlstances.“:ut indicates that overhead, depreciation in equipment and the vol- ume of gas delivered must be considered in fixing rates. As to rate, the Interstate Commerce Commission has no jurisdiction over interstate transportation of gas, but in some States utility commissions have intra-State regulatory powers. It is be- lieved, however, that the rates the gas companies can offer will result in less use of coal and fuel oil. The oil com- panies engaged in the project will, how- ever, receive a return from a product hitherto wasted and expect to ope! other markets for ofl which will equal- ize the loss of costumers for fuel ofl. Supply Is Ample. ‘The Bureau of Mines states that there is now available a supply of natu- ral gas in the Texas area sufficient for the needs of the territory to be served by the new lines for at least 25 years. The supply is by no means confined to the Panhandle area. The companies involved have tremendous gas reserves and a big mileage in collecting and dis- tributing gas lines in Kansas, Arkansas, Louisiana, Oklahoma and other areas which would be readily available to supply the needs of manufacturing ter- ritory from Denver eastward and north- ward to Detroit and Cleveland. The big new development is made possible physically by the development of welded pipe and the steel industry is due to benefit also from the con- struction of these and other gas lines. (Copyright, 1930.) CONSUMPTION OF TIN IN MARCH INCREASED American_consumption of tin during March reached the highest level in 13 months, totaling 8,675 tons, an increase of 75 per cent over the February con- sumption of 4,940 tons, according to official statistics made public in London today. The world’s total consumption for March exceeded production by 531 tons. Supplies of tin for the month amounted to 11,902 tons, compared with 13,102 tons in February, repre- senting a decline of 9 per cent. De- liveries, on the other hand, totaled 12,- 433 tons, an increase of 38 per cent over Fel . bonds for the new reparations issue. It was an active period for converti- ble bonds. Under the influence of a strong stock market, such descriptions as American Telephone convertible 415s, International Telephone 41;s, General the balance in other European capitals. Paris, having hge maturities of French at hand, wishes to be % exchange these outstanding N Theater Equipment 6s, Warner Broth- ers’ Pictures 6s, Texas Corporation 5s, Atchison 4l2s and New Haven 6s went to new high leveis. (Oflm.ht,zllfl.) Association, | I Ads —_—— STABILIZED MONEY URGED BY BANKER ASNEED OF TRADE Sir Charles Addis Believes Temporary Price Inflation Might Not Do Harm. WOULD ADJUST SUPPLY OF GOLD TO HOLD VALUE Commodity Rate for Metal Is Im- portant Factor in Industry, He Points Out. BY JOHN F. SINCLAIR. Special Dispateh to The Star. NEW YORK, April 5.—“The world of finance is out of joint,” says Sir Charles Addis, director of the Bank of England. n his opinion, many nations are suf- fering from powerful doses of deflation and “a moderate dose of temporary in- flation would not do any harm.” “What Great Britain is suffering from is not low prices, but falling prices,” he insists, because the real fall in prices during the last five years was unstable money. Sir Charles also sees the need of ade justing the supply of monetary gold to the demand, s0 as to maintain the com- modity value of gold, and he hopes that central banking co-operation on the scale contemplated in the formation of the Bank for International Settlements will perform this function. In lecturing before the Institute of Bankers in London, Sir Charles declared that the bank should demonstrate clear- ly to the world that it will not function to make profits, but “substitue co-opera« tion for competition.” “Four O’Clock Coffee.” Brazil has decided to take the bull by the horns, or, in other words, to make the world drink more coffee. When a country’s leading source of income ceases to be an income some- thing is wrong. Brazil knows what is wrong there, and that is world overpro- duction of coffee, with its consequent diminishing_prices. “Four o'clock coffee,” the Brazilians think is the remedy. If “5 o'clock tea” | has become an established fact throughe out the British empire, then certainly “4 o'clock coffee” can also be made a daily custom in the lives of Americans, Frenchmen, Germans and Russians. To bring this about, a concerted effort is now being made by the Brazliane A‘merlcl.n Coffee Promotion Commis- sion. According to available figures, the average American now drinks about 1212 pounds of coffee a year, or some | 375 cups in 365 days. We are now | drinking about 45,000,000,000 cups of { coffee yearly in this country. |”, But there is a limit, even in rich America. Business. Cycles. ‘Walter P. Chrysler is not a believer in_“cycles of depression.” In a recent statement, he says: “While there are bound to be fluctus ations causing peaks and valleys in | business, I se¢ no reason for forward= looking people to anticipate definite periodical cycles of depression. other .words, it certainly does not fol- low that depression is inevitable because of 1, 2 or even 10 years of prosperity.” Referring particularly to his own ine dustry, he does not anticipate any so- called “cycles of depression” over the next five years, believing that approxie mately 26,000,000 automobiles, or an annual output of 5,200,000 vehicl will be produced during this period. so, it will really constitute an increase of 14 per cent from 1930 to 1934 over the preceding five-year period. This automobile manufacturer is optimistic over the business future. In Printers’ Ink he tells why: 1—That only a small percentage of cur population was affected in the re= cent stock market recession. 2—That our national wealth was in nowise impaired, except in paper value of securities. 3—That wealth is more widely dis« tributed than ever before in this coun= 4—That the banking situation throughout the country has been mate« rially strengthened by the withdrawal of large blocks of money from the “call” market, thus easing bank credits and making plenty of money available for local enterprise and improvements. 5—That savings banks deposits are on the increase, February showing a de- cided gain over January, 1930. Foreign Business. American corporations are not all using the same methods in expanding their foreign business. In the automobile fleld, the Ford Motor Co. is developing its own fac- tories in each country, building its rr- sonnel and business from the groun \lf General Motors in following the pol- icy of buying a working interest in vari- ous foreign companies. ‘The du Pont Co. is expanding in Eu- rope by using methods somewhat simi- lar to those adopted by General Motors. So far, however, the du Pont Co. has not purchased a controlling interest in any company. Its aim is to co-operate and assist and not dominate in any enter- prise. It will be interesting to watch which type of organization, the Ford or the General Motor-du Pont, is the more successful. Perhaps both of them will be used widely by other American cor- porations in foreign trade expansion. Latin-American Prospects. Latin America’s importance shows up once more in the announcement that English financiers are striving to secure a financial foothold in Buenos Aires, and are eager to secure all or part of the new $100,000,000 loan which the | Argentine government expects to issue. For months rumors in banking cir- cles persisted that the Argentine gov- ernment was negotiating a loan of that size with American bankers. believed that the note addressed to President Irigoyen by the local repre- sentatives of Baring Brothers of Lon- don, asking him to authorize negotia- tions, will result in the loan being di- vided between New York and London. Baring Brothers’ representatives in- timated that the Bank of England was considerably interested in closer rela- :lm with Argentine banking institu- The fight for Latin American finan- cial supremacy is on! (Copyright. 1930. by North American, News- paper Alliance.) e MARCH SALES UP. Schulte-United 5c-$1 Stores, Ine., re- ports an increase of more than 85 ?" cent in March sales and more than 109 ompAny Taports o IS D ‘com] PO s n opera- tion at the end of March compared with a total of 50 stores in operation on the corresponding date last year. 4