Evening Star Newspaper, August 3, 1930, Page 69

News of Markets Pages 1 to 4 Part 6—10 Pages gt 'FINANCIAL AND CLASSIFIED he Sunday Sta WASHINGTON, D. C BUSINESS SLUGGISH INFIFTH DISTRICT, SAYS BANK REPORT Federal Reserve Survey for| June Says Activity Was Below Seasonal Level. AFARTMENT AND HOUSE BUILDING REPORT MADE Construction in D. C. Is About 50/ Per Cent of Each Type, Says Review. BY EDWARD C. STONE. In his monthly review of credit, busi~ | ness and agricultural conditions in the | fifth Federal Reserve district, William W. H agent «of the Richmond bank, seys that June business did not measure up to seasonal level and the | half year closed with trade at about the lowest point reached since the re- ccssion set in last Fall. A few favor- able signs appear in a survey of the | sctivities of June and early July, but on the whole there has been a progres- sive gecline from month to month this year. ¥ Rediscounts for member banks held by the Federal Reserve Bank Rich- mond decreased nearly 7 per cent be- tween the middle of June and the middle of July, and Federal Reserve note circulation continued to decline, the latter a seasonal development. On July 15 the Richmond Reserve Bank Was discounting only about 30 per cent as much for member banks as on the same date last year. Loans in report- ing member banks declined last month, while their investments in securities were increased. Debits to individual accounts figures for the four weeks ended July 9. _1930.i show a seasonal increase over debits i the preceding like period this year, but fell below the total of debits reported for the corresponding four weeks in 1929, and aggregate debits in the first half of 1930 also failed to equal the figures for the first half of last year. Fewer Commercial Failures. Commercial failures in the fifth dis- trict in June were less numerous than in June, 1929, and last month’s liabil- ities were also below those of June a year ago, but the figures were never- theless high, although better than those for other sections of the country. provement in June and early July, and prvement in June and early July, and perhaps became worse in sections of the district. Coal production in June was in less volume than in June last year and showed somiewhat more than a seasonal decline in comparison with May. Textile mills reporf®7hio improve- ment in the demznd for cotton goods, and restrictions in operating time spread further during June. Most of the mills are running about 75 per cent of full time. Cotton prices continued to de- cline during most of the past month, althougn the downward tendency was checked in the third week of July by unfavorable news on the new cotton crop. Permits issued in leading cities for construction work, Mr. Hoxton reports, were fewer in number and lower in valuation than the figures for June. 1929, which were also low. Contracts awarded compared more favorably with earlier periods than permits issued, chiefly due to road construction. Retail trade as reflected in department store sales made an unfavorable comparison with June, 1829,.trade, and wholesale trade also reported a considerably smaller volume of business this year. Too Early to Judge Crops. In agriculture, prospects vary widely in different sections and in different crops, but on the whole the past month or six weeks has not been favorable, insufficlent rain having fallen to supply | needed moisture to the growing crops. | It is, however, too early in the season to form definite opinions on probable crop yields. Thirty-five department stores in this | district, located in 18 cities, sold an average of 59 per cent less goods in June, 1930, than in June, 1929, a very large majority of the stares reporting smaller figures. Total sales during the balf-year ended June 30, 1930, averaged eight-tenths of 1 per cent less than sales in the first half of 1929, a decline probably accounted for by price declines this year. The reporting stores in Bal- timore gveraged 2.7 per cent larger sales during the first half of this year, but ‘Washington stores decreased an average of 1.0 per cent and the other cities an | average of 7.4 per cent. Stocks on hand in the reporting stores declined seasonally in June, de- creasing an average of 54 per cent during the month, and on June 30 were 53 per cent smaller in seliing value than at the end of June last year. Part of this decline in comparison with 1929 figures was also probably due to price changes during the year, Mr. Hoxton announces in the comprehensive sum- | mary. Babson Writes Investment Book. “Investment Fundamentals” is the title of a book just brought out by Harper & Bros. and written by Roger | ‘W. Babson. The new book tells much about the continuous working plan for your money, which the writer has ad- vertised so widely from his statistical headquarters. 4 | M The writer purges all investors first | He to g=t some money in the savings bank. | take out-a reasonable amount of life | insurance and then establish a definite budget. He considers the budget p'an as most essential in establishing the habit of saving, meeting all bills snd Jaying aside a certaln amount each month for investment. Mr. Babson divides his investment suggestions under three major heads In part 1 he favors buying sound stocks when the market appears to be near the bottom. In all market swings there are four periods—accumulation, rising prices, distribution and falling prices. He says no investor can hit the very top-for selling and says that much sell- ing has to be done while the market is still advancing and most people are buying. The success of this plan de- pends upon having plenty of reads money when stocks are low. His second plan is to have a good pumber of the best bonds. He believes no nvestment portfolio is sound with- out seasoned bonds. His third plan is ‘he purchase of securities in growing industries with the idea of future rather than present enhancement. The first stock list is intended to furnish large profits, the bond list an assured and safe income and the third list future profits. All securities should be bought outright, so that they can, if necessary, be carried through a slump, Mr. Babson warns. I.;lfl Reviews Local Business. ‘The first monthly issue of Wash- m Current , pub- Business by eulul 8. Lusk, Inc., appeared yesterday.® This statistical organiza- 1 { i | EDWARD J. McQUADE, vice president of the Liberty National Bank, sailed yesterday from New York for the Panama Canal and a trip up the Pacific Coast. The bank official is also first vice president of the District of Columbia Bankers’ Association. Bonds HOldWFil‘;;l Buring Week, but Make Little Gain Cheap Money Fails to Give Impetus tq Market. Few Large Issues. Special Dispatch to The Star. NEW YORK, August 2.—Though the bond market equaled its vious high mark of the year during the past week, there was little to indicate the immedi- ate arrival of the thriving market that has been so confidently predicted of la te. Standard Statistics’ index of 30 bonds touched 100.5 on Monday, maintained that level on Tuesday, dropped to 100.4 on Wednesday and Thursday and at ihe end of the week was back at the high point again. Tuesday's and Wed- nesday’s sessions saw & little heavier volume of trading than' has been the case in recent weeks, but dullness on Monday and late in the week brought | the week’s total down to the level so prevalent since the opening of the year. Low Money Rates. Much has been said about the effect of low moncy rates, but a little analysis of the present situation will reveal that, though money rates are today as low as they were in April, 1928, the Standard Statistics index during that month crept up to 102.4, against’100.5 today. So it is apparent that the market, aespite its recent advances, has not yet climbed to the highest point possible under current money market conditions. On the other hand, it is quite true that the_market today is as high as it has been since the high point of July, 1928, and that, with the exception of the pesk reached early-in 1928 and in the Winter of 1927, it is at its highest point since 1916, The favorable interpretation to be! taken from this is that the investment market still has lesway in which to in- dicate, as it traditionally does, the re- turn of business activity by a surging upturn. During the week there were $118,968. 900 of new bonds put out, which, while almost double the figur€ of the previous week, was still much below the record week of the year. It compared with | $33,187,500 in the like 1929 week. The largest single issue was $50,000,000 of Genersl Gas & Electric Corporation 415 and 5 per cent serial notes, due 1931 1935. It is interesting to note that the five-year maturities of these, at the of-| fering price of 95.75, yield 6 per cent, "l fat vield in the current tightly priced | short-term market. New Large Issues. In prospect there are few sizable is- sues. The Ontario Power Service Com- pany, Ltd, has _anncunced new financing totaling $20,000.000 of bonds. ‘The company is & subsidiary of Abitibi Power & Paper Co. Large amounts of forzign financing are still being held back, though the past week saw the flotation _of $10,000,000 Saxon Public Works, Inc, 5 per cent guaranteed notes, due 1932, priced at 97, to yleld 6.35 per cent. The notes carried the un- conditional guarantee of the Free State of Saxony and the high price indicated the reluctance of the market to accept anything but the highest grade of for- eign dollar b-nds. Really good foreign bonds were in strong demand. as witness the advance of the French 7s and 7'2s to new high | levels. (Copyright. 1930.) 'NEW YORK COTTON NEW YORK, August 2 (#)—Futures closed steady, 3 to 7 points higher; October, 12.90a12.92; December, 13.09; January, 13.16a13.17. New contracts™ October, 12.64a12.65; December, 12.83a 1284; January. 1292: March, 13.11; May, 13.25. Spot steady; middling 12.85. g il Cotton range: BESREE! EEEE T tion specializes in real estate informa- tion, so that the review deals largely with building, vacancies in apartments, offices and stores; sales of new homes, compared with the number being built, etc. Referring to apartment construction, the review says that for the first time in four years new construction in house units about equals new apartment con- struction, 607 apartment units and 546 new houses have been started. This ratio will not continue, however, as three or four big apartment projects will probably be started soon. ‘The number of apartment units start- ed so far this year is considerably less than at any similar period during the last 10 years, the review adds. This pronounced slackening of aj b building will probably bring fewer apartment vacancies than existed in November, 1929, when 9.9 per cent of all apartment units in the city were ant. Generally, the review states, bulldins is running behind 1929 anmd 1928 an will probably continue to be of less volume than in 1929. The main rea- son for this is that residential building siderable amount of private construc- tion can be looked for mflflm 'nl:wuy in residential 4 ter & HIGHER PRODUCTION WILL AID RECOVERY INNEXT 3 MONTHS Low Point of Depression Is Believed Reached With Stocks at Dead Center. DROUGHT BRINGS NEW ELEMENT OF DANGER Irreparable Damage to 0mp; Al- ready Reported—Wall Street Matches Trade Trends. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, August 2.—There have been new discouragements this week for the holders of securities; also elements in -the surroundings of business and finance to encourage him to hold what he owns and possibly justify his taking advantage of sharp declines that have occurred in the stock list. The market has reached another dead center. This is always reflected in a condition of ex- treme dullness, such as is now being witnessed. Better things are expected in August for industry than obtained during July. There is reason to believe that tne low point in the depression has been reached. The average of the various index numbers did not get quite o low in June as at the ena of December. When they are available for July it will be discovered that they went below those of the previous month. The re- action_then was more than a seasonal one. It represented the cumulative ef- fects on producers and consumers of & half year of hard times. During this period, however, the low ebb of production is believed to have been more than balanced by’ the vol- ume of buying for actual necessities of business and zor domestic requirements. Gradually, therefore, the factor of an oversupply of commodities and manu- tactured goods is being improved. It is well known that a slight change in the attitude of buyers immediately quickens the pulse of all commerefal enterprices. There is a modest hope that the same thing may happen this month. Definite Recovery Indicated. The question at issue now is- whether busmes:uu to enjoy more than a sea- sonal recovery. It 1s generally accepted that it is entitled to this and that it will be reflected in a higher percentage of production in the latcer half of Au- guest and will carry through until the end of October. Opinions differ as to the ouilook after the slack has been taken up and accommodation rendered to the lnduslrhlv.‘u:l;lnlnnfl-lmn and turat acti mukgmm in the Autumn. There is & disposition again to the date of permanent improvement beyond the resent year. Some statistical organ- tions put it off as far as the middle of 1931. § Obviously & new element has been in- troduced into the situation in the past few weeks by the drought, which has been more severe in sections of the country than for the past half century and has already done irrepsrable dam- age to the corn crop. An adjustment to this during the week is found in a price for corn above that of wheat, though still 20 cents lower than' a year ago, wheat selling at the same time about 45 per cent under its quotation of las August. Stocks Watch Trade Trend, The stock market continues to look to business for leadership. slow to discount any but the most posi- tive indications of improvement in that irection. It makes false starts but quickly corrects them. jppears to be limited in the extent of its advances. Declines go but a short distance before they are checked. This wéck we have had the statements of the railroads for ‘June and for the first, six months of 1930. For the shorter period the net operating revenue has averaged 34 per cent under that'of June, 1929. For the longer term nu- merous roads have indicated a reduc- tion in revenues applicable to fixed charges and dividends ranging from 20 per cent to 70 per cent. At no time since they came under Federal control, except during the strike of shopmen a year or so later, have the carriers’ been up against conditions so hard pressing. as those for the six months already reported, as well as dur- ing the month of July. Industrial Earnings Down. Preliminary figures of industrial earn- ings for the first half of the year do not make so poor a showing as those for the carriers, but they are enough to- unsettle the minds of holders of in- dustgial securities. A compilation pub- lished today by the National City Bank indicates net profits of 275 corporations in the January-June period about 247> per cent under those of the compara- tive term in 1929. It is worth noting, however, that while this reduction amounted to $204,000,000, the same cor- porations this year had a decrease from 1928 of only $19,000,000. is record, and the dividend reduc- tions actually made this week and oth- ers threatened, provided plenty of am- munition for the bears to use with the market as their target. They made a few bull's-eyes. Generally ~speaking, their operations were not successful. ‘The only conclusion that one can gain from this is that, weeks ago, holders of securities who did not care to nurse them through the depression period sold them. Those who held them have a strong faith in the ultimate recovery in the earning power of American indus- tries and American railyoads. There is all the time a steady flew of money into the market and an absorption of securi- ties that return a good vield and show every indication of continuing present payments to their owners, (Copyright, 1930.) LOWEST 1930 MARKS ABOVE 1923 TRADE It a) the ' Brinkmann, Lewis ‘& Co., The lowest level of trade activity in 1930 is above the f established in January, 1923, which was a period of active business expansion, according to an analysis published in the Rmu! edition of the Kissel, Kinnicutt W, proving conditio ml.h'l.n‘ m;:g:_ S conditions fol . es- proving conditions- following a depres- sion, and such a recovery is now clearly in_evidence, the Review says. Low commodity prices are attributed primarily to the shrynken world mmy of bank credit and currency, providing insufficient units of money to sustain the incre number of commodity transactions which must occur if com- modity prices are to be maintained. WITH BANKING FIRM. . Hampton Baumgartner, formerl A;flhd with Hambleton & Ooy. vice ‘president ' of bankers, of Baltiniore. MELVIN A. TRAYLOR, former president of the American Bankers' Association, who has many personal friends in this city, recently celebrated the completion of quarter of & century in his chosen profession. He is now president of the First National Bank and the First Union Trust & Savings Bank, of Chicago. He started his career as a farmer boy in Texas, Business News in Retrospect | Progosed Revision of the Federal Reserve Act Is One of the Most Import- ant Matters to Come Be- fore the Next S#ssion of Congress. ‘ BY L A. FLEMING. One-of the most important, if not the matter of the greatest weight, that will' come before the next session of Congress will be the proposed revision of the Federal Re- serve act, Many are the demands that have been made for the opening of this question, with a view of eliminat- prov- have ~been found want- ing and adding to the power of the Federal Reserve Board, while fur- ther equalizing ap- parent advantages in favor of State banks so that the nati on al banks ma ave th same ‘privil 2 . On the 1 eges. 927-1929 bulge in stocks there ‘was a great demand from many interests to curtail brokers' loans, as & means of restricting stock specula- lon. Then when the smash came in the Fall, there was some talk about apply- ing the breaks to short sellers, although Just how this was to be accomplished was 1:,o¢ indicated at the time—unless A. Fleming, It will be by la Senator Glass' Measure. Senator Glass of Virginia heads the committee named by the Senate to delve into the activities of the national bank and Federal Reserve systems. the width and scope of the \ilass bill there promises to be banking debate and hearings during the session even to the preventiomr of action until the first session of the next Congress. Bankers’ associations all over the country, State and nasional, will want to be heard on every proposition, while many individuals will also have their say, ‘also. Equality, in so far as privileged banking is concerned, between State and national banks is said to be gen- erally favored. Chain banking will have a hard time in the hands of this committee and on the floor of both houses of Congress, and is not gen- erally favored by bankers. Group banking, as advocated by the present controller of the currency, is also likely to be taboo. Branch banking, bitterly fought by some local bankers when first intro- duced here, is sald to be favored by Senator Glass, restricted only by the borders of a State. Interest Rates, - Because there are a number of States that limit by law the legal rate of in- terest that banks may charge to 6 per cent, for the reason that in credit emergencies, with the reserve rate climbing," it is impossible for banks in the State referred to to rediscount their eligible paper with profit, it is proposed that member banks may charge State limits, or 1 per cent above the Federal rve rate. Senator Glass holds that brokers’ Joans, the butt of much criticism, might have been controlled by the provision of the national banking act, restricting loans to any one person to 10 per cent of the capital and unimpaired surplus of the bank, although it is admitted that this provision does not apply to all loans. ‘Would Apply to Affiliated Banks. It is proposed to make affiliates of national banks restrict loans to any one person or interest to 10 per cent of the paid in and unimpaired capital and 10 per cent of its unimpaired . surplus. Under the proposed law affiliates of na- tional banks would be required to make reports to the controller of the cur- rency, as done by members. Bankers have long contended against the idea that the Federal Reserve sys- tem was organized and put in motion as a moneymaker, either for itself or for the Government, although it is a fact that they are nearly all big money- makers. The banks that are members of the system furnished the capital for the Reserve banks, and on this they re- ‘cetve 6 per cent annual interest, but they do not receive anything on the hundreds of millions of reserves that they are forced to carry with their refiol:l institution. up the surplus of the regional banks with 25 per cent of ‘all earnings, to fatten the regionals until they acquire 100 per cent of capital as surplus. ‘Then this, too, would go to the Govern- ment as franchise tax, but 50 per cent of the profits would be distributed ‘to the member banks as dividends. Elimination of the Secretary of the M&m the Reserve Board is ’:mnmnny different views of the _remedies applied, it is not improbable thet ‘action will be long delayed and proposed to_continue to build | ¥ FARM BOARD EDICT ON ACREAGE CUTS 1S BEING SPURNED Western U. S. Is Apparently Planting More Grain Than It Can Sell. BANKS RENEWING LOANS ON WHEAT IN STORAGE Estimate on Buying Power of Agricultural Districts Con- tinues Uncertain. Special Dispatch to The Star. KANSAS CITY, Mo, August 2.— -| With Summer two-thirds gone, the esti- mates of ultimate farm buying power | continue to be uncertain. The corn belt, after a full month of baking sun and only local showers, faces a serious, depreciation in its crop prospects. Up- land and early fields are mostly hope- less; others may yet have a fair yield with proper moisture. Cattle men, who are settling their re- cent undertakings with losses on a mar- ket practically 50 per cent of one year ago, are not inclined to make another attempt at this speculation and are contemplating the situation with doubt- fulness as to just what is to occupy their Winter activities. At present preparation for the new wheat sowing is under way with no in- dication of decreased acreage, despite the farm board’s advice. ticularly true of the high plains area, where mass production is a popular the- ory of procedure. Low returns of other crops in the Eastern section inspire wheat planting as a method of securing some use of the soil. Rural banks are showing increased loans and slow liquidation of paper. Producers are not borrowing against their wheat, which is being held in large quantities, so much as they are renewing their notes and placing their grain as security to carry along debts in hope of a higher price. The affect is to keep the banks on a basis of narrow reserve, for while deposits have increased from grain that has gone to market, the im- mediate use of money to meet passing obligations maintains a low deposit con- dition unusual at this period of the year, (Copyright, 1930.) |JUNE BUILDING OFF IN FIFTH DISTRICT | Contracts Actually Awarded Made Much Better Showing, Rich- mond Bank Says. Building permits issued in June, 1930, in 32 fifth district cities were lower in number and lower in estimated val- uation than those issued in June 1929. Permits for new work issued last month numbered 1,162, compared with 1,299 permits for similar work issued in June a year ago. Valuation for new work in the smallest figures in recept years, and even less than the low total of $8,620,- 540 reported for June last yeaf. Com- bining valuation figures for both new work and alterations and repairs, and comparing the total with the corre- sponding total for June 1929, last ‘month shows a decline of $2,655,155, or 25.8 per cent. Baltimore, Washington, Richmond and Norfolk all reported low figures for June, 1930. Among the smaller cities, several showed satisfactory figures in proportion to population, Columbia, S. C.. Wilmington and High Point, N. C.; Salisbury and Hagerstown, Md., all reporting relatively high totals. In several of the reporting cities large building _ prospects were definitely planned during June, but permits were not issued until after the close of that month. Contracts actually awarded in June for construction work in the fifth reserve district totaled $37,665,960 compared with $34,431,160 in contracts awarded in June last year, the district making & mch better showing in con- tracts awarded than in permits issued. The contract award figures include both urban and rural construction, including road building, bridges, etc, while the figures on permits issued include proj- ects inside city limits only. Of the contract awards in June this year, $10,120,240 represented residential types of construction, a relatively low | figure for this class of work. GRAIN MARKET CHICAGO, August 2 (#).—All deliv- eries of wheat today sold at new low | price records, outdoing bottom levels heretofore unreached in many years. Instability of wheat quotations were consequent to a considerable extent on expectations of a liberal increase of the United States’ visible supply total on Monday. Notwithstanding that the wheat mar- ket was, in some respects, the per- former, corn attracted more attention during much of the day, and averaged higher, with March delivery attaining a new top price record for:the season, the weather forecast for next week in- dicating that there would be no gen- eral breaking of the drought. ‘Wheat closed nervous, %a% lower than yesterday’s finish. Corn closea irregular, ranging from net decline to 1% advance. Oats, . '4a% off, and provisions showing 17a45 advance. Grain range at principal markets: September Wheat. 862 883 Chicago . 84 s Winnipe Liverpool ty. 84, (October) 93 (holiday) Mareh Wheat. Chicago 5% Winnipeg ¢ ¥ Liverpool (holiday: icago .. Kansas City 1100 Chicago . Kansas City Chicazo . Minneapol . ‘Winnipeg (Octobe: —_— ‘that some very important ¢l will be made even with these The Fede; ‘This is par-! June, 1930, was only $6,147,036, one of | -| favorable earnings, as some stocks, . | tion “Dividends,” SUNDAY MORNING, AUGUST 3, 1930. Classified Ads Pages 5 to 10 By the Associated Press. Business declined during the week anded July 26, as compared with the previous week, and with the corre- sponding week of last year, the Com- merce Department reported in its week- ly review of the situation at home and abroad. The volume of check pay- ments is used by the department as ils barometer. The report found wholesale prices but slightly changed from a week ago, but were 16 per cent lower than the corresponding period last year. Iron and steel prices likewise showed no change from last week but, like whole- sale prices in general, were lower than a year ago. Bank loans and_discounts of mem- ber banks of the Federal Reserve sys- corded but slight change when com- pared with the preceding period and the corresponding week in 1929. Aver- corded increases over both prior periods. Interest rates for call money fell off, while those for time money were higher than last week. Both rates were materially lower than a year ago. Building and engineering projects, and the activity of steel mills for the period ended July 19, showed market gains over the week ended July 12. As compared with a similar period in 1929, both indicators registered declines. Bank loans and discounts and the prices of leading stocks for the week ended July 26,1930, recorded increases over the week ended July 28, 1928, two years ago. In Canada the latest government crop report, for July 24, indicates a general improvement in Western crop conditions over the previous week, owing- to_widespread rains and more moderate temperatures. The Manitoba tem for the week ended July 26, Te-| change TRADE DECLINE IS INDICATED IN WEEKLY COMMERCE REPORT Wholesale Prices Slightly Changed From Last Week, but 16 Per Cent Lower Than in Same Period Last Year. wheat yield promises to be heavy, al- though reports of rust and lodging are damaging. Saskatchewan prospects are fairly good in the western, northern and east central districts, but range from fair to poor elsewhere. Alberta reports heavy crops in the north, un- even conditions in the central eastern section and reduced yields elsewhere. Business conditions in Brazil continue unsatisfactory, with many classes of trade reporting less activity, bringing almost all lines far below normal, Jan- uary to May trade figures show export values have declined 13 per cent and the largest favorable trade balance many _years. Exports have been light and the import volume has fallen be- low rTecent low levels. Industrial ac- tivity has declined further and ex- has fluctuated _considerably. The credit situation remains un- changed. The slowing up of business in Cuban age prices for representative stocks | trade centers, customary during the | showed no change from last week, but | Summer months between crops, has were much lower than a year ago.|brought the volume of business turn- Bond prices, on the other hand, Te- |over this year down to a level consid- erably below that of any period in the last six years. Because of general busi- ness inactivity, currency has been flow- ing into the banks, which, finding the volume in excess of current needs, have States. From France comes the unofficial re- workers throughout that country are deduction of social insurance assess- ments from their pay. The principal strikes are said to involve 15,000 metal- ers in Lille, several thousand textile workers in Roubaix and Tourcoing, and 10,000 textile workers in Armen- tieres. In addition there are 7,000 strikers in Rouen, of whom approxi- )Tately 2,000 are dockers, and 2,000 at avre. LOWER PRICES SEEN AS BUSINESS AID Revival in Demand for Goods Expected This Fall as Trade Improves. Special Dispatch to The Star. NEW YORK, August 2.—Improve- ment of the business outlook has been particularly noteworthy in connection with retail trade, says Henfy Clews & Co. As is well known, the total volume of such trade has held up quite well, and stocks ef commodities have been considerably drawn down, so that much larger orders placed with manufac- turers will be necessary. At the same time, it is believed that the lower prices for mew goods which will be offered to consumers, and the fact that many concerns are now so closely sold out that their Autumn purchases will give them fresh stocks in almost all depart- ments, will bring a decided revival of demand. Reporting authorities find that whole- isale dealers were 21 per cent lower in volume of sales during June than they were a year earlier. It is to be remembered, however, that these sales were expressed in dollars and that a large part of this decrease ds offset by the fact that this year's sales took place at far lower prices. In retail business, where the price level has held up much better, and where sales have continued on about the same basis as last year, comparisons in dollar figures are favorable. There seems to be little reason to doubt both good wholesale and retail trade during the coming Autumn. Price Cuts in Luxuries. Expensive items of individual pur- chase, such as automobiles and the like, are undergoing pronounced reductions, some important cuts of the kind having been announced during the past week, while renewed selling effort is to be directed toward the consumer. The result should be a favorable Autumn season in these branches. Demand for basic products, particu- larly iron and steel has continued strong, . although naturally and neces- sarily below last year. Allowing for the reduction of building, due to ex- cess supply in many parts of the coun- ‘try, and to moderate recession in sev- | eral “other branches of demand, the steel and fron trade has given a good account of itself since the first of the year. and continuing on up to the pres- jent ‘moment. Financial Conditions Improved. The month of July has shown con- siderable improvement of financial con- ditions. Bonds, which had tended to become congested.in the hands of deal- ers who had offered them on the mar- ket without being able to sell them, have been reduced in amount and are now beljeved by the best observers to be hardly in excess of average or normal quantities so carried. The total financing for the month will run to about $700,000,000 of which from $130,- 000,000 to $150,000,000 are refunding. ‘The interests which have been en- deavoring to put prices up to higher levels are evidently still behind the mar- ket, ,believing that present values are distinctly low. Greater activity and desired by both business leaders and the political authorities; and it may reasonably be expected that the mar- ket will continue to exert its influence. ‘The future of the market, of course, | depends upon the condition of business, and given issues are likely to fluctuate under the influence of favorable or un- es- pecially among the rails, did during the past week, quite noticeably. CHEAP MONEY CLEARS WAY FOR RECOVERY ‘The most encouraging factor revealed in a comj the present indus- trial situation with all other depressions in modern history is that the recovery which inevitably follows a slump in business has usually tome after there has been a sharp and substantial reduc- on in terest rates, ‘according to the monthly review pub- lished by Kidder, Peabody & Co. “With rates on,three to six months’ commer- cial paper in the neighborhood of 3 per cent at present as against about 7 per cent just a year ago, the way lpglelu cleared for a recovery,” this publication says. “As pointed out before, however, easy t extent & tom wonderfully and any ehange should be - the well considered. a more hopeful outlook are urgently | LED BY UTILITIES | Public Financing Aggregates $3,991 ,411,000 for First Seven Months of 1930. - Special Dispatch to The Star, NEW YORK, August 2—New public financing in the United States the first seven months to July 31, 1930, excluding domestic and Canadian mu- nicipals, aggregated $3,901,411,000, ac- cording to preliminary compilations announced by Otto P. Schwarzschild, editor of American Underwriting Houses and Their Issues and T of Na- tional Statistical Service, New York City. This total compares with $4,149,- 448,000 for the same périod of 1929. The review includes stock issues as well as bonds and notes.'' Preferred stocks of a set par were considered at par, while all no par stocks were eal- culated at public offering prices. The record was compiled from advertise- ments of syndicate offerings and the head of the syndicate was assumed to be the firm appearing in the leading position in the advertisement. The compilation reveals that J. P. Morgan & Co..led the list of invest- ment houses during the first seven months by heading syndicates amount- ing to $660,778,000. Harris, Forbes & Co., with $335,259,000, ranked second and Luhn, Loeb & Co. third, with $244,325,000. ‘The results of the first seven months from the standpoint of total business participated. in, either as head or par- ticipant, show that Harris, Forbes & Co. accounted for the largest volume, with $1.116,764,000. The National City C6. ranked next, with an aggregate of $1,087,994,000, while the Guaranty Co. of New York was third, with $971,- 794,000, » An analysis of the financing during | the first seven months reveals that of the total new offerings of $3,901,411,000, bond and note issues ted $3,- 452,557,000, or over 80 per cent of the total, while stock issues amounted to only $448,854,000. Domestic public utility financing totaled $1,390,125,000, accounting for more than one-third of total offerings. Domestic rall sues ranked second, with $594,590,000. Canadian corporate and other foreign issues aggregated $802,461,000, while new financing for financial and invest- ment companies totaled $232,670,000, of which over two-thirds comprised bond and note offerings. During the first seven months of 1929 new offerings in behalf of Public Util- Aties 2amounted to only $710,011,000, for railroads only $152,493,000, while in- vestment trust financing reached a total of $1,120,869,000. MONEY REMAINS EASY WITH RISE UNLIKELY Low Interest on Loans Makes Good Return on Dividend-Paying Stocks or on Bonds. Special Dispatch to The Star. NEW YORK, August 2.—The money tion of a change in ‘the trend of rates able last month to obtain accommoda- ;lnl".ls! l? low as 317 per cent. This per- of a very satisfactory margin return on dividen = interest-bearing bon levels. The banks are discounting at the Federal Reserve on the smallest scale in many years, There could be a considerable increase in the demand for money to meet the seasonal requirements without affecting current momey quotations. These rates have not so far been influenced by the large exports of goid to France and Canada and by the tendency of the exchanges of other countries to move, toward the gold-importing level. Just why France persists in taking 50 much gold when she already holds over one ind three-quarter billion dollars of it is a puzzle. It may be explained more readily on political than on economic grounds. At a time when her government apd municipal ohligations are selling in this market at the highest prices Those. of - Gentral Bury appointing action this week "‘; e o weel new, German and Austrian Tsues, e néw. transferred large sums to the United | ypcle port that between 70,000 and 80,000 | pacame now on strike in protest against the | g YEAR'S NEW ISSUES g stocks or | States Building and the current | Sisting of more than 12,000 byilding and | paign to | Sets of BIG. REFORESTATION PLANS ARE HALTED BY STATE TAXATION Western Lumber Interests Hesitate to Extend Opera- tions, Fearing Imposts. BAN ON SOVIET GOODS CAUSES MANY PROTESTS import values 30 per cent, resulting in | Lowman Decree May Soon Be Modified After President Hoover's Intervention, BY JOHN F. SINCLAIR. Special Dispatch to The Star. NEW YORK, August 2—Cut-over lands—that is, the stump lands left after the timber has been cut—are becoming a problem in many of the Western lumber States. Twelve years ago Cloquet, in the Northeastern part of Minnesota, was a prosperous sawmill town, surroundsd by _timber. The great forest fire of 1918, In 400 persons lost their lives, destroyed the town and much of the timber. What the people should do an immedjate problem. ‘The Weyerhaeuser interests were the lumber men of the town. They decided to rebuild the city and install & great variety of wood utilization plants, based ultimately upon a plan lurgical workers and 7,000 textile work- | of reforestation. Since then this company has spent $93,000,000 in this charming city of 10,000 people for the development of different wood-using industries. In 1928 Minnesota voted to make reforestation economically possible by revising their land tax laws. Im- mediately the Weyerhaeusers made a plication to put 172,000 acres of cut- over lands under that law. But the authorities of St. Louis County rejected the application, ana ‘Weyerhaeusers announced the abandonment of their reforestry plans. It's largely a problem of taxation: Reforestation is badly needed in the United States. The rejection of this application was largely based upon the fear that these lands, now subject to regular taxes, would pay too small a share of the county taxes for the next 50 years, and thus throw the ad- ditional burden upon the rest of th2 land. Reforestation is with a practical not be worked inseparably tied up tax program. It can- out otherwise, Lowman’s Record. Seymour Lowman, who stirred un American business interests this week his strong statements against im- portations of Soil:b goods, has besn for- three years istant Secretary of the United States®Treasury. After graduating from high school and a business college at Binghamp- ton, N. Y., he studied law while serv- ing as a ncnozrl'p er in a law office at Elmira. In 1891, at the age of 23, he was admitted to the New York Bar and has practiced law since that time at Elmira. In addition to his law practice and his extensive farming interests nearby, he is a vice president of one of the Elmira banks and -an officer in sev- eral other corporations. He has been in New York politics for many years. A member of the New York Assembly for two sessions, a member of the New York State Sen- ate six years and lieutenant governor of the State for one term. Under pressure from President Hoover, Mr. Lowman agreed re- consider the embargo on Soviet goods. “seasoned” statement . should be announced shortly. Protests against the embargo have been received from all parts of the country. It looks now as if a modi- fication of the embargo decree s probable. Australia’s_trade is being slowed up these days by the heavy discount of 8 per cent on her money. Ordinarily, the United States sells to the Australian Commonwealth about 8 per cent, if continued, means $12,000.- 000 annusily, or $1,000,000 a month lolss by American exporters on exchange alone. ‘What goods are affected? About $25,- 000,000 of oil products is one of the largest items, Australia, a vast continent, about equal to the United States, has only 6,500,000 people. Her adverse balance of trade is about $10,000,000 a year. Until the discount, caused by this unfavorable trade balance, is lifted, American trade with this progressive commonwealth, will probably be slow. Grain Corporation. .- With the purchase last week of a Jarge Minneapolis grain farm, the Farmers’. National Grain Corporation, the grain marketing organization of th> Farm Board, has become the greatest single factor in the world's wheat trade. C. E. Huff, its president, sess a big future ahead. In just eight. months the wheat farmers, through co-operative efforts, have rounded out an organiza=- tion in the Spring wheat region. So now it has five divisional agencies in the country—one on the Pacific Coast, and one ecach in the Northwest, the Northeast, the Southeast and the Scuthwest. Mr. Huff expects his organization to handle at least 200,000,000 bushels of the 1930 wheat crop and probably half of the 1931 crop. “The elimination of a possible 3-to- 10 profit-takings and the establishment of the Farmers' National as the most important factor in the foreign market,” says Mr. Huff, “means that American market has gone from the month of | wheat has becom ssible to buye: July into August without any indica- | anywhere in the :v;r?;’ e Such work is closer to the “collective” for call or for the loans. Those who | heart of the F: Board than an buy stocks on borrowed money were ) other. prics i i Building and Loan Plans. M. Bodfish, manager of the Unifed Loan League, con= H. loan associations, has opened headq ters in Chicago to begin an active cam= to tell the American people more llbout the building and loan association One out of every ten people in the United States is a member of some building and loan association. TI these associations—now almost $9,000,000,000—are used largely in build- ing homes, and about 500,000 are built “| each year. Loans are made on residences and are paid back on a monthly or weekly basis. How have they succeeded? The records show that in the past 10 years losses have been practically nothing—ranging from 1 1,000th of 1 per cent to 14 1,000th of 1 per cent of the total re- sources. Mr. lii:lievel that as the work= (Copsright, 1930, by North American Newss | Daver %)