Evening Star Newspaper, May 4, 1930, Page 79

News of Markets Pages 1to 4 Part 6—12 Pages FINANCIAL AND- CLASSIFIED he Sunday Star WASHINGTON, D. C, SUNDAY MORN NG, MAY 4, 1930. Classified Ads Pages 5 to 12 SAVINGS AND TRUST (0. STOCK AT $o80 OND. C. EXCHANGE Advance Puts Issue Points Higher Than First Quotation This Year. OTHER BANK SECURITIES PROMINENT IN TRADING ‘Washington Base Ball Is Again Bid Up on Fine Show- ing of Team. BY EDWARD C. STONE. National Savings & Trust Co. stock 20ld at $580 per share on the Washing- ton Stock Exchange yesterday. This is an advance of 1 point over the last previous sale and up 60 points from the first sale made this year. National Savings is within 20 points of the highest priced bank stock in Washing- ton—United States Savings, which last sold at $600 a share, Disf National Bank stock also figured in a small sale yesterday at 214 and Federal-American National figured in a 20-share turnover at 283. Bank of Bethesda stock also appeared on the board, changing hands at 63. Potomac Electric Power 6 per cent pre- ferred sold in a small lot at 111, Capital ‘Traction sold in a small lot at 75, and the remaining trading was devoted to bonds. Capital Traction 5s came out at 94%, ‘Washington Gas 6s, series B, sold at 1044 and 103, while Gas A bonds rem tered 102%. Washington Gas brought 101 and the market closed wlf-h $500 Washington Railway & Electric 55 selling at 57'/ Wa Base Ball stock again Teflected the standing of the club at the Head of the American League. The bid price was raised 5 points from 50 to 55 and the asked price went up from 70 to 75. This is a jump of 10 points in less than 10 days, but the spread of 20 points between the bid and asked qunuum has prevented any sales. In the unlisted department the asked price on Raleigh Hotel stock was ad- vanced to 65 and the asked price on ‘Washington Savings Bank stock was Taised from 18 to 20. Essay Contest Judges Appointed. President W. J. Waller of the Dis- trict Bankers’ Association has appoint- ed the three judges to select the win- x':;n tmd"u ln‘nnuelv essay contest open students ‘ashington Chaj American Institute of Banking. Sk ™~ ‘ndges who will render the im- Putvac. Tulings on these essays are George O. Walson, president of the Liberty National Bank; Francis G. Ad- dison, Jr., vice president of the Security BA vings & Commercial Bank, and How- ard Moran, vice ident of the Amer- ican Security & t Co. These three men know their essays and have pre- ly served on similar committees. The institute contestants must turn in there essays tomorrow. Each essay has a number but no name on it, so that the judges have no way of know- ing who the writers are when they read them over and note their fine points. As is quite generally known, the win- ners of the first three places are given It teresting. The re!u.rd this year will bo trips to Ashville, N. C. Some Retail Trade Comparisons. The Reserve Bank of Richmond's monthly review shows that retail trade in Washington in March was off 14.3 per cent, compared with March 1929, Salvs from January to April 1 were 4.7 per cent lower t-:;:; they were in corresponding period a year Stocks on hand in retail Wzru 1;'&:1. clty were 5 per cent larger than in Mnrch of last year. stocks on hand were hmly due to the receipt of merchan- for the Easter trade, the report expl ks Y e, sent five impor- hnt lines of mfi"um reports on their W Muarch buunul to the Federal Reserve Bank of Richmond. March sales of Eo, 2, et 1o Bl arc] les, but drug sales were in the 1930 month. March sales wed seasonal increases over February sales in all lines except dry goods, in which there was a decrease of less than one-half of 1 per cent. in the first quarter of lno (n groceries and shoes were larger than sales in the corresponding three months of 1929, but dry goods, hard- ware and drug sales lower this the decline in drugs beln[ aue in qu part to unusually large sal in January, 1929, as a result of a mfld epidemic of influenza. Credit Easier Than Last Year. Money conditions are, fundamentally, considerably easier than a year ag Co. York, are still substantially below the levels that prevalled in April, 1929, and, although money has naturally firmed at the midmonth and end-month periods, the process has not been ex- cessive. In fact, the ease with which the ordinary periods of money strain have been passed testifies, even more convincingly perhaps than the ex- tremely low rates of March, to the fun- damental cheapness of credit at present. ‘While money was scarce continuously last year until the stock market break, it was the excessive rises in rates at the heavy payment dates that empha- sized the condition. In many quarters there is considerable ‘confidence the outlook for the con- tinuance of relatively easy money. Cer- tainly, present indications do not point to a sufficiently rapid increase in gen- eral business activity to put a strain upon credit conditions very soon, and, unless the Stock Market should experi- ence an unusual outburst of speculative activity, it does not appear that there should be any material firming in in- terest rates in the next few months. ‘With money conditions remaining stable and the flush of heavy bond dealing with the vigorous advance and subse- axtnt reaction passed, the outlook for income securities wou|d not ap- pear to be unfavorable, the bank con- cludes. Named for Executive Council. ‘The following five bankers have been pominated for the executive council of the fiduciaries section o( the District Bankers' Association: F. P. H. Siddons, American Security & Trust ca chair- man; Irving Zirpel, Union Trust Co.; George M. McKee, Riggs National} CI D. Ratcliffe, Munsey Trust, and Ralph P. Barnard, District National. Howard Moran, vice president of the mfllcln Becuflty & Trust Co., is an- onur ashington banker who will at- nd the executive council session of can kers' Association, wm owu tomorrow at Old Polnc Somfort, Vi 60/ ADDISON IS D. C. SPOKESMAN AT BANK COUNCIL MEETING | Security Savings Official Was Named at Montauk Point Convention Last June. Native of Maryland Is Grad- uate of Local Schools and Active Financier. Francis G. Addison, jr., vice presi- dent of the Security Savings & Com- mercial Bank, will represent the Dis- trict of Columbia Bankers’ Association at the Spring meeting of the executive council of the American Bankers’ Asso- ciation, which opens tomorrow at the Chlmbfl’lln-vmderbflt Hotel, ol Point Comfort, Va. With the exception of the annual convention in the Fall, this is the most important meeting of the kind held during the year. Mr, Addison was elected a member of the A. B. A. council at the meeting of the local association last June at Mon- tauk Point, Long Island, to serve for three years, He is a former president of the District Bankers’ Association, has served on the association’s most im- portant committees and is now chair- man of the committee on law and leg- islation. Born in Prince Georges County, Md., Mr. Addison obtained his education in the public schools, specialized in busi- ness courses and later graduated from the Georgetown Law School. lived in Washington since 1904 and re- sides in the Georgetown section of the city. He i= a director in the Security Savings & Commercial Bank, treasurer INVESTMENT BOND MARKET IMPROVES List Climbs About Half Way Back to March Peak During Week. Special Dispatch to The Star. NEW YORK, May 3.—With the low- est Federal Reserve Bank rediscount rate in six years in force and a conse- quent luwenn‘ of time money rate— 90-day bill ped to below 33 per cent !ur the first time in years—the in- vestment market came out of its gloom during the latter half of the week. ‘There were two or three almost vigorous sessions with prices rising sub- stantially from the low levsl.s to which they had been driven by the competi- tion of a flood of new offerings. As a matter of fact, the list climbed about half way back to the high levels estab- lished in March. True, the total of new offerings in the week was larger than that of the previous week, or about $175,000,000 as compared with $165,000,000, but the stimulus of the cheaper money rate could no longer be ignored. And since the market had declined to the point where bonds could compete with the call money market, there was a great deal of buying by banking houses, in- surance companies, estates, and to a g'renter degree than has been the case March, by the public. Byndicates Dissolved. mm&mm:dumpmhzm factor was the dissolution during the week of I numbvr of ouuhndln( lynd.l- cates and amount of umold notabl; yumepmwcinmrchmd early April. A few of these syndicates were broken up by force of circum- stances, in that the market dragged so far below the offering level of their flo- tations that they could no longer . - ford to “peg” the price. An instanc of this was the case of the Erie R.-u- cent of 1975 Gf $50,000,000 mid-April. The offer- of France to 2% per cent. Both the lnwelt rates in years. the ehetper money R‘:’é’ thus announced by large pean central banks is partly by |tion mwmon for the first $300,- ent of German repara- flonl bond and partly reflects the desire of the banks of England and l"nnce to favor thc lnv-tme'nt and busine interests of their respective counmea New Flotations. The future of the New York invest- ment market, efore, rests on the amount of new flotations. Even such favorable circumstances as those gur- rently obtaining can be flood of new offerings is too large. The German reparations bonds are not ex- pected to involve much difficulty in dis- mbu'.lon and New York may take more than the $100,000,000 that has been tentatively set aside for this market, But the success of the issue, when effected, is sure to be the herald of a large number of foreign loans, many of which have been purposely postponed to make way for the reparations offering. ‘The recent cleaning up of odds and ends in the bond market has reduced the supply of tax exempt issues to a pomt where it is estimated to be less than $50,000,000. This is a compara- tively small amount and it has placed what is equivalent to a scarcity value on certain prime municipal and Gov- ernment bonds. However, new offerings approaching the $100,000,000 mark are scheduled to be brought out in the municipal market in May, and these should take care of the demand. Meanwhile, municipal bonds have ad- vanced with the rest until they are back almost to their high point of a month ago, when the yield ranged from 3.60 to 4.40 per cent. (Copyrisht, 1030). WEEKLY BANK CLEARINGS. atatement of the New York c! house shows: ‘Total surplus and undivided profits, $1,171,246,200, unchanged. ‘Total net demand deposits (average), $88,076,000, increase. ‘Time deposits (average), $5,846,000, |mc!em Clearings week ending today, $8,263,- |8 192,414 Clt week A 26, $7,- 352,876,990. b e y day, ‘"l.“'.ll'. He has | vis NEW YORK, May 3 (#).—The weekly |y, learing FRANCIS G. ADDISON, JR. of the Better Business Bureau, member of the board of trade and several other organizations. President John G. Lonsdale of the A. B. A. will preside at the council meeting, which will hear important re- rts from the agricultural Nmmuslan. ing practices commission, ruptcy commission, commerce and m rine commission, economic policy, Fed: eral legislation, fiftleth anniversary, national bank division, public relations, education, saving bank division, State b‘.rl}.k division and trust company di- on. Mr. Lonsdale will report to the coun- cil as president of the association and for the administrative oommmu other of will also make reports. INCREASE IN CROP ACREAGE EXPECTED U. S. Figures Indicate 2 Per Cent Gain in Planting for 1930. BY FRANK 1. WELLER (Associated Press Farm Editor.) Unless bad weather or some other factor interferes with the farmer's in- tention to plant, the crop acreage in 1930 will be about 2 per cent larger than last year's. ‘This estimate, prepared by the Bureau u mppomng a determined campaign to_slice 0,000 acres off the usual As compared with acreages grown last nlr, hpofil hom MM farmers indi- ‘increase in corn, z%Muu,21mnmxzmm.am grain sorghums, in potatoes, 8 sweet potatoes, ln tobacco and 15 per cent in beans. Presumably the durum wheat acreage will be reduced 15 per cent, and the peanut acreage 5 per cent. The intend- ed wheat other than durum is about the size of last year's. Farmers carried over into the new season a moderate stock of food and feed crops, which was encou: in itself, but agricultural economists are generally agreed on the risk involved by the declining commodity markets o euly sprlnx and the feeling of economic inty, Eec Hyde warns that produc- tlm:n:!ll; ly is running ahead of world :nu Roberts, vice president of the Nmoml City Bank of New York, says that an attempt to maintain the same population on the farms will mean an increasing llll’fl}ul of pmducu, ac- companied by falll Expansion of clplclty w ‘produce, be says, has resulted in fewer persons be- ing needed on farms. TOBACCO GROWING CONTEST IS PLANNED Maryland Association to Hold Com- petition for Boys in 4-H Clubs. Special Dispatch to The Bt: BALTIMORE, May 3.—To the interest of young mlcunuru\‘a m tobacco raising, the Southern mryl.md ‘Tobacco Growers’ ation has a nonnud a tobacco-growing demonstra- for youths from 14 to 21, belong- uu o 420 Clgbs, A trip will be awarded at the end of the season for the best quality to- bacco grown by a contestant on a half- acre tract. Planting, cultivation, har- vesting and stripp! all must be done by the contestant, who also must write an account of his work. There is no restriction on the amount of tobacoo & contestant may grow, but only the yield from & half-acre tract will be considered in awarding prizes. ‘The prize in each of the five tobacco- growing countles is a free trip to the annual meeting of the Tobacco Grow- ers’ Association and the Maryland Farm Bureau-Agricultural Soclety meeting in January. GRAIN MARKET Prices Show Further Decline in Sympathy With Stock Break. CHICAGO, May 3 (#)—Forced down- ward both early and late by the infl ence of stock market smashes, whut today barely escaped going as low as $1.00 & bushel here. Examination of records showed this to be in violent contrast with the average price in Chi- cago from 1890 to 1929, inclusive, the average for that period being 1.21%. Export demand today for North Amer- ican wheat was rather.slow, but some quantities of indefinite amount were said to have been taken for Europe on the downward swings of the market. Wheat closed nervous, at but little above the day's bottommost level, 782% & bushel under yesterday's fin’ ish. Corn closed %a¥ off, oats un- changed to % up and provisions un- changed to 7 down. = s lLnw: [ 4 Ehnn!.nx a national shipping m RECOVERY IN TRADE| [_rrsaine omeer_J DECLINE IN STOCKS CONDITIONS ABROAD IS DECLARED SLOW 40utlook Brighter in Britain, Says Survey in Busi- ness Week. TAX CUTS MAY REVIVE INDUSTRY IN FRANCE Germany Enjoys Good Export De- mand, With Reichsbank Posi- tion Much Stronger. Special Dispatch to The Star. NEW YORK, May 3.—Cable dis- patches to the Business Week give the following survey of business abroad for the week ending May 3: Europe—Business is not yet out of the holiday lull. Within another week it is expected that final organization of the international bank will be com- pleted and decision made on the first reparation loan. England definitely fears no catastrophical consequences from increased taxation, although un- easiness concerning its effect upon the xupply of capital persists. France has acted tax reductions, but passed si- muluneausly its first compulsory social insurance law, whose costs must in- evitably be added to manufacturing costs and {mu levels. Germany, in fur- ther developing the new lgflculturl.l policy, has succeeded in raising domestic values, but it is urlous)y feared exporters of manufactured goods will suffer reprisals in foreign markets. Italy has further consolidated her syn- dicalist system with the inauguration of a councll of corporations, a superstruc- ture, designed to give national unity to existing separate syndicates correspond- ing to each fleld of enterprise. Final settlement of the Eastern Euro- pean reparations questions at the Paris conference removes this condition, stip- ulated by Italy and England before their ratification of the Young plan. Immediately following these ratifica- tions subscriptions will be opened for international bank shares. Fifty-six per cent of a total share capital of $100,~ 000,000, will be divided into 2000,000 five hundred dollar shares, or 112,000 shares will be assigned in equal parts 1o seven participating powers. It is ex- pected that the German Reichsbank and United States and Japanese partici- pating private banks will retain their shares, whereas issue banks in England, France, Belgium and Italy will offer shares for public subscription. There is general anticipation that these certifi- cates will be oversubscribed everywhere. Smaller allotments, prnhnblieot 6,000 shares each, are expected to be made to Switzerland, Holland and Sweden and the balance gradually repartitioned among other goid standard countries. Business Slow in Britain. Great Britain.—The business outlook is discernibly brighter, but immediate business is still slow and featureless. Succeeding weeks probably will be eventful as various developments now germinating will develop. The series of foreign loans, l.\rudy ‘underwritten, will, when issued, test the market and determine the Vllldlty of British capi- tal away from the pound. Fresh ru- mors are current that Lord Kylsant ll ut the Business Week has learned his plans are more apt to tend toward disin tion of his group and reas- nmu- n into four or five main hold- Amnnl current conditions, the coal trade reports better inquiries, but little new business, while several local col- liery districts are closing down. Steel has taken some good contracts; iron re- mains unchanged. Cotton is still flat, handicapped by the Indian tariff and disturbed conditions in China. The wool outlook is better, with a prospect for settlement of the Burnley labor dis- pute. Both motors and rayon are im- proving after Snowden's announcement um duuu will nnt be chmeed. The shipping to thaw and ral nra mufler uthmh idle tonnage April 1 was still 892,000 tons, the highest in the last eight years. Trend Uncertain in France. France—Enactment of the tax-re- duction program and of the first French compulsory social insurance law domi- nated business interest this week, though there is no obvious reaction. New conditions are not yet reflected in general business, and the probable trend is puzzling. Sentiment seems a shade less optimistic, whereas it had been expected to react favorably to the realization of the long-awaited tax cuts. ‘These reductions cut taxes $75,000,000 to a total (over 14 months) of $210,- 000,000, or 10 per cent of total budget revenue. Lack of response from busi- ness is in part attributable to the pecu- liar multiplicity of Prench taxes which makes even larger aggregate reductions, when dispersed through many tax cate- gorles, fail of material single effect. The new social insurance law repre- sents a leap into the dark. }j)ponm'l prophesy the plan will eventually neces- sitate far greater costs and re-enact- ment of taxes to maitain budget equill- brium. With important revenue reduc- 2t | of production. The tre machin JOHN G. LONSDALE, President of the American Bankers' Association, who will conduct the Spring sessions of the executive council, which open at Old Point Comfort, Va., tomor- row. During the past week he took an important part in the sessions of the United States Chamber of Commerce. U. S. Officials Aim To Promote Firm | Demand for Labor Railroads Set Example in Modern Plan to Stabi- _lize Employment. BY J. C. ROYLE. Even the best informed statisticlans are uncertain as to just what the em- ployment situation is today in the United States. Comparisons with sta- tistics of previous years not only are “odious” but entirely misleading. Officials of the Department of Labor declare the conflicting opinions as to the industrial situation have come about as a result of inability to adapt old figures and old ideas to present conditions. There i3 no question that the rail- roads, for example, are doing more con- struction and repair work than they have done in the last decade. This does not, however, indicate that a larger number of workmen are employed by the railroads. Through the use of modern machinery it is now possible, according to rallroad men, to do five times the amount of work done in past years with the same number of men. On one division of a big trunk line territory carrier a gang of 60 men, in- cluding a foreman, removed the old rails and the tie plates and laid 637 thirty-nine-foot rails, weighing 130 pounds to the yard, in one 8-hour day. ‘That is equivalent to 12,421 track feet or about 2}z track miles. Under the old system the same crew would have gneed 135 rails of the same length ut of considerably less weight and would have constructed about a half mile of track. ‘The same situation applies to every of employment and every industry. lbert Stewart, commissioner of la- bor statistics, said yesterday that this country does not need five times as much Tailroad construction now as in 1920, nor does it need five times as many buildings as it did 10 years ago. He declared there is not enough capital to finance such & volume of work, an it would be useless if it were 3 It is quite obvious that this country is not going back to the old methods nd toward mod- ernized ery will continue. This, according to Mr. Stewart, will mean a shorter working day and a shorter work- ing 'uk ’x'hc Indulmll Conference declar duchlr'e em- geoyu lndlsmmlmm!y ceased to a policy of American industry. The board advocates the stabilizing of em- ployment to obviate seasonal fluctua- tions in the demand for labor. One way Iugesud for doing this s to determine advance the probable amount of outgut required over a year and then distribute the production fairly evenly over the 12 months. This more feasible than is generally sup- , even in the handling of perisha- le raw ma . In such materials the problem has been simplified by new methods of storage and refrigeration. Another stabilizsing method suggested is for the lnyzr tq manufacture an- other product which utilizes the same machinery and personnel which turn out the major product. The third meth- od suggested is intensive advertising and sales effort. (Oopyright, 1930). Three-Million Policy. A life insurance policy for $3,000,000 has been placed on the life of Junior Fleischmann, son of the head of the yeast concern, mmmuunu what is said to be the I t insurance ever placed on & single life at one time in the city of Cincinnati, with the possible exception of & policy taken some time 2go on Mr. Flelschmann's sister. Ship Washburn’s Body Today. VIENNA, May 3 (#).—The body of Albert Henry Washburn, former United States Minister to Austria, who died here last month, will leave here today for C'herboul& ‘whence it will be taken on the Leviathan for New York May 13. ‘The widow and a son will accompany tions, and state committal to an un- | the known extent on the costs of social in- surance, prosperity becomes an increas- ingly vital necessity to French finances. A more immediate effect on business is seen in successive additions of employ- ers’ wage contributions to manufactur- ing and trade costs, entailing an in- crease in the general price levels esti- mated at anywhere from 2 per cent to 14 per cent. Reichsbank Strong. Germany.—Sustained exports and the strong position of the Reichsbank are the solitary bright spot in the increas- ingly gloomy aspect of business condi- tions when contrasted even with the limited degree of seasonal improvement now progressing in other European countries. Business is shocked by the heavy dismissals of workmen from lead- ing industrial plants hitherto considered relatively least effected. During the week, Siemens discharged 2,000 hands, &X;fi{fd Steel Works 5,000, Leuna Syn- c Nitrogen plant of the Farben-|more than industrie 1,500 and Mansfield Copper Works 800. Total unemployment in the first week of April was 3.050.000. which is 400,000 over the figure & ago. Building trades are now employ- ing only 47 per cent of their members, compared with 53 per cent 8 year ago, notwithstanding the mild Winter and Spring, compared with last year’s un- precedented cold. Financial difficulties of manv German municipalities are the principal causes for contraction of new building. Farm relief is launched and the re- cent radical increase in agricultural tariffs has succeeded materially in in- creasing domestic grain prices, but not wtthout serjously threatening Germany's incredses have port subsidies would now presage dump- ing German surplus foodstuffs upon nel[hbor markets and further increase the danger of reprisals upon German exports of manufactures. ‘The severe freight tie-up in German ports is apt to hasten further shipping fusions. Following the Hapag- Lioyd agreement, the fusion of all six of the leading German lines is rumored. Already interlocked, they include the Hamburg-South America, Hansa, Woer- mann and German East Africa lines. German exporters are winning suc- cess in India. An order has recently been placed by the Indian failways, hitherto utilizing primarily British ma- | Pe! terials, for 34 German Schwarzkopf lo- comotives, which are expccud to keep that company occupled till Autumn. Ttaly.—Further reduction of the bank Jjustment of the existing monetary conditions, but it is ar | interpreted as a symbol of restored cur- rency stability. The effect on business sentiment is reflected in the stock mar- ket’s favorable reaction, both to the bank rate reduction and m Mussolini’s emphatic reaffirmation of a policy of systematic reduction ol lhlyl public debt, which he called the mortmain of Italian finance, whose servicing is now requiring no less than one-quarter of the total revenues. He also gave as- surance that bonded debt maturities berlnnl.nu next year would be met. e Business Week is authoritatively intormad that Isotta-Ford negotiations, ‘which were reported abandoned, are be- ing actively continued, with hope for consummation. - | are slow and it will DURING WEEK LAID 10 SLIM EARNINGS Easier Credit Conditions Fail to Offset Bearish First- Quarter Reports. UTILITIES COMPANIES RUN COUNTER TO TREND Action of Rail Issues Reflects Dis- turbed Conditions in Car- rier Industry. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, May 3.—There has been & decided reversal this week in the Wall Street attitude toward those influences that go to create security values. In- stead of huoyuntly anticipating the fu- ture, as it did during March and the first_half of Aprfl it has been mourn- ing the past. The effect of this has been to create one of the most distress- ing periods that the market has experi- enced since last Autumn. We are now getting the backwash from the November panic, as this is represented in poor earnings, reduced dividends, increased failures, lower commodity prices, something of a buy- ers’ strike in certain raw products and manufactured articles and a reduced— actual or sentimental—purchasing power in the necessities of life. ‘The speculative element was unwil- ling a short time ago to admit that these together could do more than transient injury to securities and put them aside in its mistaken judgment that there would be this Spring a re- vival of business and, therefore, a build- ing up of corporation earnings to a point where the existing level of “equi- tles” would be justified. Now it sees the pictures of national business affairs ob- scured by events and records that are slowly being replaced by more promis- ing ones and accepts only in part the optimistic reviews presented this week by nearly every branch of industry in the United States by the Chamber of Commerce and in the speech of Presi- dent Hoover, in which he declares that the worst of the crisis is behind us and that “with continued unity of effort we shall rapidly recover.” Public Avoids Losses. Markets suffer more from technical weaknesses than from any other one factor. The April market was obvious- 1y unsound from the premise on which it was based. ‘There are benefits in almost all sit- uations. Out of the present decline in stocks there has already been & re- bound in bonds and willingness on the plrt of the underwriting lynnlclfcl to tiate loans which eclined ment that a impossible so long as were attracting by their spectacular advances the major interest of the in- vesting public. It also followed that the reduction in rediscount rates here and abroad would not have been made with stocks daily soaring to new records and the speculative passions of the people again being aroused to a high pitch. It was proof of the overbought condition of the stock market that it gave no re- sponse to the abrupt change in money conditions this week. Adjustment to Trade Conditions. Between the low level of last Janu- ary and the high price of mid-April industrial awcka mvmced an average or 50 flpo ave 25 polm.s trom the top of last month This is a fair adjustment to the indications of restricted trade given in March quarterly statements of earn- ings ana to conspicuous signs of over- production and reduced purchasing power. These have been revealed in the cut in copper metal from 18 to 14 £ cents and in a steady shading of quo- tations for iron and steel, culminating on_Friday in & reduction of $2 to $3 & ton in the products of one of United Siltel smr; important subsidiaries. ustment also takes into account | to e adjust dlvldends that have been reduced. The. average of railroad stocks this week was mugl lower '.hl’x;l .'fh:“ other time during the year, or Decem= ber decline. From the high figure of the end of March, the reaction in this group-of shares amounted to an average of-over 17 points, with an uninterrupted fall from the early part of April until a rally put in its appearance on Friday. This unusual decline was a recognition of the highly disturbed state of the transportation industry, which has been more serfously affected by the business reaction than any other. As early as last November the net operating income of the carriers showed a decrease of 24 per cent, eomplred with the same month in 1928. An equal loss occurred in December. In January the decrease was 28 per cent, in Feb- ruary 30 per cent and in March over 37 per cent. This was not due entirely to ‘the smaller movement of rreight or the steady loss in passenger Earnings Inerease Likely. Tt is not likely that the average rail net operating income decrease of 30 per cent in the first quarter of 1930 will be duplicated in the second three months of the year, though car load- ings in April were disappointingly small nnd with quotations as they are in agri- culture, in mlnulutll!lng, in iron and steel, in building and in mining, gross earnings cannot recover a great deal this Spring. Against this element of earnings, in calculation of whether railroad stocks now are reasonable in price or whether one must further ad- j\mt fiouflom to income, is the fact dividual issues with long divi- dend records and large surplus earn- ings are selling as low as they have at any time in the past two years and that when they reach an income basis of between 5% and 6)2 per cent in a riod when money is quoted as low s at present, investors will buy them along with preferred stocks and mort- gage bonds. ‘There is no occasion to change the statement consistently made in this review for the past month that, while business is lmmvlngeamdlly. its gains some months yet before the country returns to what it may consider a normal basis of pro- duction. It has overproduced raw ma- terials; it has overstimulated the sale of manufactured lnlclel by hi:h prs- sure methods and i some of its best tml‘n mmmm me power to buy here by draining their money markets in order to assist in the Wall Street speculation. It is debatable how far minimum money rates will stimulate business. | w Director l ' HARRY M. BEDELL, Mattress manufacturer and well known local business man, has been elected to the board of the Bank of Commerce and Savings. He is greatly interested in the Board of Trade and Chamber of Commerce, having served on many important committees. He is a prom. inent Mason and president of the Ex- change Democratic Club of Calvert County. Md. LOANS AGAIN HELD FACTOR IN MARKET Heavy Selling of Stocks Fol- lows Sharp Expansion in Brokers’ Borrowings. Special Dispatch to The Star. NEW YORK, May 3.—There have been too many elements entering into this week’s decline in the stock market to claim arbitrarily that one or two have been the main causes of the re- action. It is significant, however, that the heavy selling has coincided with another sharp in brokers’ loans and that the volume of Wall| time, Street commitments in loans is again being actively discussed after having been a more or less dead issue for sev- eral months. The Federal Reserve loan figures this week showed an increase of $57,000,000, or to a level $946,000,000 above the low figure on December 24. The New York Stock Exchange loan total showed an increase last month of nearly $407,00 in March over Febru- 000, lwg and of $183,000,000 over January. This makes 80 far this year of time oemblned on the basis of POOR FOREIGN CROP MAY AID DROOPING U. . GRAIN MARKET Drought in Argentina and Australia Expected to Af- fect Current Yield. CHEAP MONEY RESULTS FROM LACK OF DEMAND Industry and Securities Markets Are Operating on Smaller Cash Basis. BY JOHN F. SINCLAIR. Special Dispatch to The Star. NEW YORK, May 3—To say that wheat authorities in both the United States and Canada are doing some tall thinking these days is to utter a truism. May wheat a dollar a bushel in Chi- cago! Pretty bad, pretty bad! But maybe prices will change and the carry- over will save the situation, think some. Let's take Canadian situation first. The Dominion Bureau of Statis- tics says that Canada will have a carry- over on August 1 of 115,000,000 bushels, as_against 104,000,000 bushels in 1929. But this does not, as one observer points out, take care of the amount of Cuudll wheat in storage in the Uni u ‘This, if added, would incre: ledl! carryover from 20,000,000 h) 25,000,000 bushels. 8o to g!b it down to 115,000,000, Canada must export be- tween April 1 and July 81 at least as much as she exported last year. Not much encouragement in thisl U. 8. Figures. ‘What of the United States? The De- partment of Agriculture figures show 280,000,000 bushels of wheat available in the country for export from April 1 to June 30 or for carryover. “Unless the United States exports much faster than s year ago, the supply on hand July 1, 1930, will be greater than that of last year, which approxi- mated 240,000,000 bushels,” says the Wall Street Journal. Not s very rosy picture, either. Of course, between now and lurvut Argentina and Australia will be pretty much out of the market, 8o Eu- Tope is expected to turn to North Amer- ica for her supply. But wait! res show that from Figure August 1, 1929, to the end of last week, the world exports of wheat were 451, 000.000 h\u‘l’:ell’.x mi&l‘: 697,000,000 & year ago an two years ago. Reading these n:uuu. one might ex- pect wheat export to smaller this year than last year md the American carry-over proportionately larger. ‘The one favorable factor from the Ax:’;flun and points of m complilation, of apparent & oonsiderable part of this e :lon o( over 25 cent in loans year has been due to the increase in stock exchange trans- actions and to the higher price level established between the first of the year and the middle of April. There has also to be taken into account, in analyz- ing the increase, the accommodations ted to bankers for carrying securi- ties during the process of wholesaling and retailing them. One trend that deserves comment is the increase in time loans this year. This has amounted to about 85 per cent an _expansion in demand of 18 per cent. however, are at present less than 15 per eene of all of the so- elued “Wall Bs;elet A reasonable to expect a change in thh situation, as the llauldlflon in stocks that has occurred ln the past two weeks had not begun to be reflected in the statements of the Federal Re- serve or of the New York Stock Ex- change at the end of April. Next week's Federal Ruer" report on loans of the shrinkage in market values. Wall streee would not be very much rised if this loan reduction amounts tween $150,000,000 and CZWM- 000. In the week of October 30, 1 * loans d unsettled than since the trying of last October and November. (Copyrisht, 1830) STEEL HOLDING NEAR OLD RECORD MARKS Production Rate Being Well Main- tained in Most Important Centers. Special Dispatch to The Star. ers and business doctors have given the public the imprwlon that le"l trade has in a depression, an mntmonlyunnlwdoumuwh and walt for improvement. They re- port very carefully the respiration, temperature and pu!n of tlu patient and make comparisons from day to day, but they do not name the disease or suggest & remedy. ‘The course of steel does not indi- cate that there is much in this view of the situation. Steel did particularly | P well in 1928 and altogether exception- ally well in the first half of last year, should show a sharp decrease, in view the of one nation may turn out to be the good fortune of an- other—in wheat raising. Cheap Money. “Why is money so cheap now, when it was so dear six months ago?” asks a New Yor: r?ndsr et While business begun fore the stock market break of h.lht.l"lfl. it was still going strong and requiring vutk':mounu of credit to carry on its The stock and bond market, too, was absorbing u:\m u&d more me. ‘until money rates rose to a new Tecord, since the panic of 192. Neither of these factors is taking as much credit as it did then by many bu- lions, Industrial depression is world- wide. Business -is slow. English busi- ness is feeling it, so is business in Italy, France, Belgium and other countries, as well as business in the United States. So less money is needed now. And the New York stock market ukm( much less credit than it di 000,000 'r.rs:::é‘:zao o an -énnu nu;may.mm; ltovi“'a‘gper Never has the conservative Bank of hings: (1) speculative wilt '133:? m. tes Thelp? U oney ra doubtedly chea) A Y, v:lubr bull.non m I ess, mortgage loan fleld, build- ing and road construction un; buxln:l 'eml’lfl-llgll ly it will be arly of great help in preparing the fleld for the new repZu- tion bond luue. of which America is yet it is off only a little by such a short-range comparison. It is above a general trend line made by the records of tonnage up to 1928, with allowance at the rate, and it is only alightly below a trend line con- structed by including the last two years. ‘The steel trade's habit, however, is to take the highest record made and then expect to equal or exceed it; ‘l:lence ting stantly increasing ity, the same tonnage demand mm greater pflu competition. Steel production has decreased fl!lhtly in the Chicago district and in the East, also at Buffalo. The Pitts- burgh district maintains its rate and seems well faru.flpd to eonunue for several weeks. rate of steel ingot rod\m.bn oflwl int Sent” ol “Tull preserts capaciy. Apare cent of present capacity. from the showing made in the last two years it has been considered and seasonal for steel production to jecreasing Rates have been low enough the past three months to make it profitable to borrow and expand if there was money to be made in expansion. That cheap money will assist in the distribution of investment securities there is no doubt; also ing attracting new nw.&a loan. (Copyright, 1990.). by the end of March, and by that vle' seasonal decrease .!be:un about & month later than usual. Some of the trade reports ex: ate the weakness in steel prleum ummm"‘fl:fl'mmu o!;gmd soon absorb around $100,- Sugar Prices. BY' wyr(m have reached new low illett & Gray, authoritative sugar statisticians since 1860, announce oe"“nf. bound, whild the Suly sestion 1y , while i tho futires market dipped.to L35 cemta dipped —prices slightly below th mvlvq“ ju’gt.'ilgyn?: elevelnuch:d refiners, all competing and overls each oul“‘!hd about four or nva ‘ 'eu-of’“ Nation,” sald Rudnlph Sbrecflu. in au- sugar prices the But this “sweet” d.rum 1is fll’ from '-hn. uf.hough such a move has been under way some time. (Coprriant. 1930, 65 Nerin American News- Paber Alliance.) Cutler-Hammer Expands. NEW YORK, May 3 (B —Asmeta of Union Electric Milwaukee, mflmm:l M B Ot iamer, sitocuve Kiay oot