Evening Star Newspaper, September 7, 1930, Page 65

» " News of Markets Pages 1 to 4 Part 6—12 Pages THRIFT AND WORK URGED FOR RETURN OF U.5. PROSPERITY Bank Association Official Points to Recent Growth in Savings. CORRECTIVE PROCESSES ARE NOW IN OPERATION Improvement in Trade Conditions Near at Hand, He De- clares. S BY EDWARD C. STONE. Sane prosperity is on the way, but it will not come merely by wishing for it, declares Thomas F. Wallace, presi- dent of the National Association of Mutual Savings Banks. Mr. Wallace believes that hard work and economy are the first essentials of normal rather than feverish activity. Institute Teacher DR. GEORGE HARNHAM, Who is to conduct a course in public discussion and debate in Washington Chapter, American Institute of Bank- ing, this year. He is pastor of the Cleve- land Park Congregational Church and was a special lecturer at George Wash- ington University last year. BOND PRICE INDEX, “Nothing proves this more conclusively than the remarkable progress made by mutual savings banks all over the coun- try during the first half of 1930. Their deposits on July 1 showed a gain of more than a quarter of a billion dollars over the previous high total reached in July, 1929, the exact gain being $255. 672,624. This means that for a consid: erable number of people there has been a right-about-face. Instead of count- ing on endless profits from the fruits of speculation, they are getting back to & normal attitude of mind, which in- sures the return of a normal rather than a feverish and unhealthy activity. “This changed spirit in the minds of the people of country gives me confidence that a turn for the better s near at hand. It was in 1927, when ‘we entered upon an era of speculation, that the real crisis occurred, which culminated in the deflation of October, 1929. Just so our present chastened frame of mind, if sincerely followed up by honest endeavor and faith in our- selves and our country, will bring a prosperous 1931, “We are still in the midst of some of the necessary though painful cor- rective processes which must be gone through if a per foundation is to be laid for soun: mmwmpemy. Some houses that were built upon the sand are bound to be swept away, but the value of sound foundations and honest work ‘utgereby will be the more em- ‘Phas Many Encouraging Facts. “Meanwhile there are many encourag- ing facts to be noted. The recession in building activity is grad ‘There are fewer ed were six months ago. The :a to the consumer is steadily being luced, and manufacturers and whole- salers by wholesome udu?gvn- in their prices have reduced invenfories and put themselves in a sounder. financial “If the retailer will now follow suit, and make reductions commensurate with the prices at which he can buy new goods, his sales will be greatly increased and the wheels of industry will begin to turn. In proportion as he delays such actions the ntumdot nor- mal prosperity will be retarded. “Only a blind man will shut his eyes to the fact that the ‘great drouth’ which has cast its blight over our coun- try this Summer—with its resulting failure of crops and lessened sustenance for live stock—is ‘bad news,’ and must inevitably retard the full recovery of business. But so vast are the agricul- tural resources of our country that, al- though districts and individuals will suffer, we will still produce a tremen- dous total. This surely will tend to show all of us how dependent the fundamental prosperity of our country is upon agriculture, and how important it is for the whole country to realize the importance of preserving' the ‘vocation of farming.’ ¢ “In short, we must learn anew that there can be no lasting gain or pros- perity without a corresponding ex- penditure of thought and effort.” New Institute Instructors. ‘Two new instructors have been ap- pointed to teach in Washington Chap- ter, American Institute of Banking. Mrs. Anne -Tillery Renshaw will have charge of a women's ‘class dealing with problems of the average business woman in her daily associations, while Dr. George Farnham, pastor of the Cleveland Park Congregational Church, will conduct a course in public discus- &lon and debate. Mrs. Renshaw has an A. B. and educa- tional degree from’ George Washington University, general culture diploma, School of Expression, Boston, and 12 years’ college and university telchlng experience. She was formerly nationa chairman of the Curry League; chair- man of literature in the local Pen Women's League, and director of the Asheville Summer term, School of Ex- pression. , Dr. Farnham received the B. A. de- gree from the University of Iowa in 1917; B. O. degree from Northwestern University, and B. D. degree from Yale University in 1924. He was formerly head of the blic speaking depart- ment in the State Normal School of Chevey, Wash., and from 1927 to 1930 a special lecturer in public speaking at George Washington University. He served in the United States Navy during the World War. Dr. Parnham's course will be designed to meet the needs of business men and women in the local banks, and the edu- cational committee of the chapter will encourage the organization of a debat- ing team as well as participation in the chapter’s speaking contest in connection with the $50,000. Giannini Foundation Public Speaking Contest, which offers annually prizes amounting to $1,100. ‘Worst Times Believed Past. While recent business changes have been irregular, the situation affords a basis for belief that the worst months of the depression have been seen, as- serts the National City Bank in its its latest review. Business has held up under a combination of unfavorable con- dions, viz.: Seasonal relaxation, serious crop scare and a’ world-wide reaction in full swing. Two important industries are hold- ing back the recovery and affect the prospects for Fall business—house build- ing and the manufacture of automo- biles, the City Bank says in discussing details of the situation. For the first half of this year there was a decline of 44 per cent in the motor output. Turning to the drought the review says: The consensus of opinion seems to be that the Government's August report on corn, estimating the crop at 000 bushels, will not be ex- 2,212,000 ceeded. Mr. Legge, chairman of the | AT RECORD LEVEL Demand for Investment Se- curities Continues at Brisk Pace. BY BYRON SELLER. Special Dispatch to The Star. NEW YORK, September 6—With a substantial amount of interest and dividend distributions at the end of August to provide for, the volume of buying in the fixed income securities market during the past week was much increased and prices went to a new high level for the year on the average. Standard Statistics’ index of 30 bonds stood within a point of its peak of 102.4, made in the Winter of 1927-1928 in the “booming bond market.” Since the investment market has ad- vanced over the past few weeks at a slow though steady pace, it has almost caught the economists and market forecasters unawares and little talk has been heard recently of the strong in- vestment market that traditionally marks the beginning of a business up- turn. However, there is no mistaking the tremendous strength of the bond market. Inactive Bonds Gain. Tape watchers during the past week or 50 have been interested to see ordi- narily inactive bonds brought out and, in sales sometimes consisting of a single bond, marked up 1 or more points. This has occurred in bonds ilke Long Island Railroad refunding 4s (1949), Delaware & Hudson 4s of 1943 and Southern Railway 65 of 1956. Another case that points out the scarcity valyes that have been estab- lished for p! investment favorites is the way m which Baltimore & Ohio first 4s, which normally sell 1 to 1l points below Atchison general 4s, have driven up until the two bonds are both selling on approximately a .10 per_cent basis. Toward the end of the week traders found that there were very few offer- ings of high-grade legal rails and public utilities or municipals on the market. Investors were forced to re- sort to desirable issues. The re- sult was that a long list of second grade rails, public utilities selling on a 5 to 5%, per cent basis, and semi-speculative industrial descriptions were advanced one or more points, thus eflectufiy decreasing the spread between the top and secondary grades. Volume Increases. Volume reached above the $8,000,000 mark daily against a little better than $6,000,000 last week. This, of course, only includes transactions on the ex- change and is but an indication of the much larger counter trading. Against such a demand, the week’s total of new bonds at $67,150,000 was absorbed without a flutter. Most of it consisted of high-grade public utility bonds. The total compared with $67,~ 907,000 in the previous week and $8,- 976,000 in the same week of 1920. Meanwhile there was merely a thin stream of municipal offerings, not nearly enough to check the demand. Current ylelds in this section of the market have declined until Middle West and Far Western communities, which ordinarily have to pay a slightly higher price for accommodation, have been able to borrow well under 4 per cent. Buffalo, N. Y., secured a record price for an issue of long-term obligations, at a total cost to the city of 3.91 per cent. The threatened tightening of money rates has failed to arrive or even give any sign of its coming. As a matter of fact, the London market has such a glut of funds on hand, with British treasury bills selling on a 2%, per cent basis, that the New York money market has been more or less assured of the further retention of low money rates by a moderately large export of British balances to this market. (Copyright. 1930.) munity and the Individual farmers upon whom the brunt of it falls. The price of wheat, which at one time showed a gain of about 10 cents per bushel on the strength of expected use of wheat in substitution for corn, has dropped off to about the low of the season, influenced by good crop reports from Canade and several estimates of a world crop larger than last year’s. Sales of Russian wheat from day to day, although not large, are a disturbing influence because of the lack of knowl- edge of how much wheat there is to come out of that country. The money market has continued in a state of ease during the past month and the seasonal expansion in credit in the last half of the year has not yet become pronounced. The bond market in August afforded a particularly bright spot in an othe: wise drab picture of Midsummer dul ness. Many high-grade municipal, rail- road and public utility issues have pushed into new high ground for 1930 and are now selling close to the peak levels of 1928. On the other hand, in- lesser extent in the recent advance, the bank comments. s Mrs. Anne T. Renshaw will address the meeting of the Women's Committee of Washington Chapter, American In- stitute of Banking, tomorrow evenin Federal Farm Board, whd deprecates the talk of a general crop ocalamity, ts the corn crop at 2,000,000,000 els. Unquestionably this represents a serjous loss, not so much to farm group as & whole as to the ge: com- requirements that normally takes place | finish. dustrial bonds have participated to a )} FINANCIAL AND CLASSIFIED The Sunday Star WASHINGTON, D. C, SUNDAY MORNING, SEPTEMBER 7, 1930. Classified Ads Pages 5 to 12 RECOVERY IN STOCK| IFOREIGN BUSINESS LIST AMOUNTS 0 SUBSTANTIAL GAINS Market Pushes Steadily Ahead During Week Despite Adverse Trade Reports. BEARS FAIL IN ATTEMPT TO BRING ON REACTION Most of 15-Point Loss Recorded in August Has Been Regained. BY GEORGE T. HUGHES. Spetial Dispatch to The Star. NEW YORK, September 6.—It was a year ago this week that the stock market experienced the first preliminary tremor which resuited in the convulsion of October and November. At the time the popular comment was that the market undoubtedly had been bid up, to extravagant heights in a whirlwind of speculation, but there was nothing “fundamentally” wrong with business. We now know that there was some- thing wrong with business. Trade re- action had in September of 1929 already been in progress for two or three months, although it was not generally recognized. As a matter of fact, the market was tardy in reflecting an in- dustrial downturn, which had started some time before, Today the stock market shows sur- prising resistance to adverse'news. The passing of dividends, quarterly reports showing decreased earnings and further declines in commodity prices, as for instance the slump in rubber and the renewed fall in wheat, are ignored. The popular comment is that the market is oversold, but that there has been no real recovery in business. Pace of Pickup Slow. ‘The chances are that just as the popular view was wrong in September, 1929, it is wrong in September, 1930. It is admitted that it takes a keen eye to discern signs of trade improvemenj these days. Something is to be expected at this season, normally a time of bu ness expansion, but the is discour- agingly slow and the favorable items few in number. Perhaps the best that can be said is that there has been an increase in operations in the steel trade. The Iron Age puts it st 55 per cent this week, compared with 54 per cent a week ago and 53 per cent three weeks ago. is is good as far as it goes, but it does not go far. Car loadings are higher this week than they were a week ago, but that, too, ought to be 50 at this time of year, and the total is much under that of the WI‘- ing week in 1920 or in 1928, or that matter, in any year since 1922. ¢ndn‘¥ August 23, the latest available report, over the week ending August 16 represents a more than normal seasonal increase. That is to say, way busi- ness is still much under that of a year ago, but there is a smaller fimfl ge decline than there was and outlook is for better comparisons as the Autumn progresses. Incidentally, railroad evecu- tives are much more optimistic than they were. One large Eastern trunk line sent out an investigator to tour the country analyzing the business situa- ation. He returned this week with an unexpectedly favorable report. Gain in Retail Trade, Retall sales are sald to be larger and there is a better feeling in the textile trade, but that is about all Eiectric power production has fallen off at a time when it ought to be expand- ing. Total output, according to the National Electric Light Assoclation, was 1,664,043,000 kilowatt hours for the week ending August 30, against 1,675, 757,000 for the week ending August 23, and 1,738,812,000 for the week end- ing August 31, 1929, Coming now fo the action, of the stock market, there is much in the way. of encouragement. Taking the averages as a guide, the rally after the Midsummer break reached its high point on July 28, losing 15 points in the reaction which culminated on Au- fl:at 12. At the close on Friday night s week over 12 points of that loss had been recovered. Traders who oper- ate according to the “chart” are watch- to see whether or not the market will go through the old resistance point on the upside, and if that happens they will be ready to buy stocks. If the market turns downward again they will be_correspondingly bearish. Without making any predictioris as to the future, it can be said that raiding tactics by operators for the decline no longer unsettle the list. There were two striking illustrations of this situa- tlon this week when on Wednesday and again on Thursday the market had to meet concentrated selling by & powerful group working for lower prices. Momentarily the attack succéeded, but only momentarily. As soon as the pres- sure lifted, recovery began. (Copyright, 1930.) GRAIN MARKET CHICAGO, Sept. 6 (#).—Suspension of trading in grain futures in Buenos Aires and reports of a revolution there sent all grain prices soaring here to- 4day. The market opened with depres- sing news of lower prices at Liverpool and slack demand for North American wheat for export, and aside from a flurry of strength at the start had de- clined steadily. News of the South American outbreak sent wheat and corn prices violently upward. The up- ward bound of prices carried some de- liveries of wheat as high as 4 cents a bushel over the low figures of the day. Wheat fluctuated wildly at the peak of the rally with the trade in general unsettled and nervous. The close was well under the day’s high levels, but still above yesterday's clos- ing prices, Corn eased down from the best levels because of selling against offers and on resting orders, and the close was little better than yesterday's Wheat closed nervous and unsettled at 1%al7% cents net higher than yes- terday's finish. Corn closed unsteady from 34 cent lower to 7 cent higher, oats from unchanged to 3 cent up, and provisions ranging from unchanged to 3 cents advanced. WHEAT— High. Low. Close. September 87 82% 8bY at the Roosevelt Hotel. Miss Janel Johnston, from the national office of the institute in New York, will also be a special t and speak. It will be the first and Winter seasop. nner meeting of the Fall ot Ma; GEORGE L. STARKEY, President of the National Bank of ‘Washington, is taking his vacation In the form of an extended motor trip North, having left here a few days ago. Mr. Starkey started at the very bottom in the banking profession and has been with the same institution over 40 years, He is also on the executive committee of fl:e ‘Washington Clearing House Asso- ciation. ONLY 26 PCT. DROP IN BROKERS’ LOANS Generous Extension of Credit by Banks Revealed in Latest Survey. Special Dispatch to The Star. NEW YORK, September 6.—The to- tal volume of credit employed in carry- ing securities has declined only 26.6 per cent from the high point of last year and 20.3 per cent from the levels of last Summer, according to the Alex- ander Hamilton Institute’s current weekly. In computing the total credit used in security loans, the loans of all reporting member banks have been combined with loans for the account of others reported by the New York City banks and loans from non-banking sources shown by the New York Stock Exchange report. Large Reductions Noted. “Since the stock market break last Fall there has been a marked deflation in the brokers' loans reported by the New York City banks and by the New Eo':k Stock Exchange,” says the insti- shown-by the reporting member banks, but it has been much less in extent than the drop in loans shown by the first two sources. A combination of the three reports will evidently give a more complete presentation of the course of security loan deflation than any of the Andividual series.” The comprehensive index of all se- curity loans makes it apparent that “the deflation in total security loans is less drastic than the two brokers' loan statements would indicate. It is also apparent that the decline has been greater than the figures of the report- ing member banks taken alone would show.” The contraction of credit shown by the composite figures ‘“is slightly less than one-half of the per- centage drop shown by the two brokers' loan statements. But it is more than three times the percentage decline shown by the statement of all report- ing member banks.” ' Figures Modify Reports. “These comprehensive figures do not negative the story of a drastic curtail- ment in brokers’ loans. They modify the figures, however, by showing that it is in this field chiefly that security loans have been curtailed and that the volume extended by the banks has not been correspondingly reduced. “There are various surmises which may be made with regard to the loan total. There is the possibility that some part of it is representative properly of commercial loans. There is the fur- ther probability that, from the borrow- ers’ standpoint, a proportion of the loans are ‘frozen.’” a0t A month-by-month comparison of all security loans shows the present volume to be lower than at any time since the end of September, 1928, SEASONAL INCREASE IN STEEL TRADE SEEN Special Dispatch to The Star. PITTSBURGH, September 6. — fortnight should now be allowed for ful- fillment of predictions made in the steel trade for more than two months past that there would be a decided increase in tonnage in September. The pre- dictions began to appear when demand decreased sharply in June, this being called an early arrival of Summer dull- ness. The predictions refer to seasonal im- provement in steel, not to any material change in general business conditions Vacationing is particularly marked just before Labor day and is supposed to come to a complete stop then. Allow- ing time for buyers to formulate plans and translate them into orders, definite and easily visible results should come by the time the middle of September is past. Any increase later could be no more than a flash, not materially af- fecting the sum total of steel production in the last four months of the year. Steel production during July and August averaged around ‘56 per cent of capacity, against an average of 67 per cent during the first six months of 5:(: year. The 27 per cent drop in the tonnage rate was quite unusual and unprecedented in recent years with the exception of 1924. Plainly, then, the important question is whether the first six months were particularly good or the last two months particularly bad. ‘There is room for suspicion that in the six months there was much mo- mentum left over from the previcus trade. activity and from 1929 incomes of corporations and individuals. Accord- ingly it is only a seasonal increase trom the 56 per cent producing rate, not a return to the 7 per cent rate, that is the height of expectations. ‘There is one distinctly new item in the situation, a growing disposition among steel sellers to stop the con- tinued decline in stcel prices. The first vis'ble move in this direction has come this week in the sheet trade, sheet mills insisting that they are going to hold to the open market prices they have hitherto been shading or cutting. There are intimations that sellers of bars, shapes and plates contemplate taking a sim] stand, mn.— 10%0.) SENTIMENT SHOWS TURN FOR BETTER Seasonal Demands Give Promise of Improvement Later in Fall. STEEL CARTEL ABANDONS PRICE FIXING SCHEDULE Countries Eastern Agricultural Adopt Program of Sales Policies Special Dispatch to The Star. NEW YORK, September 6.—Cable dispatches to the Business Week give the following survey of business abroad for the week ending September 6: Europe.—Business sentiment for the first time in many weeks has turned more cheerful as the Fall seasonal de- mands begin to make their appear- ance. So far, however, only consum- able commodities are affected; the pick- up has not yet extended ¢o the heavy industries. There is, fortunately, no inclination to over-value the prospects. It is fully realized that long-existing slackness cannot be relieved in a few weeks, but it is felt that if Fall busi- ness is fair or average, it will ma- terially diminish the difficulties of the Winter and prepare the ground for pos- sible definite improvement in the Spring. Money continues plethoric and bill markets are barren, indigation enough that the inciplent demand which has cheered business has not yet been translated into trade. The steel cartel, failing to maintain discipline among its members—especial- ly Belgium—has abandoned its last price control schedule on beams and roducts. All that remains of the cartel are export agreements protect- ing domestic markets, but the belief prevails that the cartel can be recon- stituted on the sales comptoir system when immediate strains are relaxed. During the first half of this year, car- tel production of 15% million tons compared with 175 millions in 1929. Under the plan, production in the Saar Basin and Luxumbourg actually changed but little; in France, it in- creased; in Germany, there was a bulk loss of 1,700,000 tons. The rail, pipe and wire cartels are functioning smoothly. Warsaw Conference. Eastern European agricultural states have concluded their' conference at Warsaw. A program has been drawn up which provides for the. co-ordina- tion of export sales policies. Econo- mists anticipate & n farm car- tel to develop around new group. Great Britain.—Current market re- ports indicate & continuation of the in- cipient business improvements first noted last week. Though the volume of business not actually larger, the volume of inquiries has distinctly ex- panded. Coal exports have increased and without any decline in price. The recent cut in fron prices is considered to mark the bottom. Pig iron is be- ginning to move, and the demand for finished steel is improving slowly, though spasmodically. British buyers of steel are antagonistic to the conti- nental sales competitors, which favor home industry. Exports of electrical equipment and machinery have in- creased. The non-ferrous metal mar- kets are quiet, but steady improvement is anticipated. Small price-testing or- ders on cotton textiles were received during the week trom India, China, Egypt and South America. If raw cot- | ton stabilizes, large commjtments .are expected from these countries. The Lancashire Cotton Corporation has re- opened five of its mills, some of which have been idle since 1928. Woolens and leather are quiet. The Trade Union Congress now in session at Nottingham, and represent- ing 3,700,000 labor members, opened with a striking presidential address by John Beard, in which he scored advo- cates of national socialism as affording no promise for greater prosperity and asserted that the bulk of British labor seeks, not replacement, but its own place within the capitalistic system. Mr. Beard's words carried great weight, for, as representative of the trade unions, he ke for an organization which largely controls the Labor gov- ernment. of Snowden’s uncompromising free tradelsm and of complete protectionism as a cure, all. Rather, he advocated that the trade unions remain inde- pendent to judge which measures can best be applied to particular cases. With the passing into receivership of the Lamport & Holt line, the finan- cial condition of the Royal Mail, holder of two-thirds of its stock, came again into the limelight. Long in financial difficulties because of inflated assets, this condition of Lamport & Holt, and the rumor that Royal Mail is negoti- ating for the sale of its Australian lines to Lord Incheape, lends weight to the common belief that Royal Mail will not much longer last as such. France.—Business is quiet and fea- tureless. The usual seasonal pick-up is not yet evident. Rather, market reports indicate continued gradual business re- cession. Gold imports have again as- sumed considerable volume; the stock market is somewhat stronger after its prolonged lethargic decline. Textile strikes, now localized in the North, are as yet unended, but the solidarity of the owners is beginning to disintegrate and it is expected the jssue shortly will be resolved. A Franco-Rumanian most-favored- nation commercial treaty has been signed under which Rumania accords to France new lower treaty rates on agri- cultural machinery, shoes, pharmaceu- tics, soaps, perfumery and silks. These concessions are automatically extended to the United States as well because of the existing most-favored-nation treaty. Rumania, in the new treaty, is accorded a low duty on corn with a special import contingent for France. The Bucharest press had previously reported that France also obligated herself to import 400,000 tons of petroleum products and erect a refinery in France to handle Rumanian oll. For this concession she was to be entitled to the free import of an additional 400,000 tons of crude oil. While the report is denied and unsub- stantiated in the treaty, it is considered significant in view of continued nego- tiations for a special petroleum-tobacco agreement. Germany.—Basic business depres- sion remains unchanged, though opti- mists see a bit of hope in cheap money, a slightly stronger trend on the stock market and somewhat better business sentiment and despite the disturbing in- fluence of the pending elections. The Federal Institute of Business Research reports no improvement in coal, steel and machine bullding, but production of consumables has revived slightly. ‘The opinion prevails that Lgobenu.l buy- ved pending the conclusion the government's efforts to bring . about the price reductions discussed last Beard was intolerant both | &4 Washington Bank President Writes to Friends From Rio de Janeiro. Believes City Has Fine Fu- ture—Tells of Trip to Fi- nancial District. Maurice D, Rosenberg, president of the Bank of Commerce & Savings, Sev- enth-and E streets northwest, has sent word to friends that he is having a wonderful visit in South America. His last message to John M. Riordon, exec- utive vice president of the bank, stated that he was stopping at a hotel in Rio de Janeiro which offered a marvelous view of the harbor. He added that he had been making a brief study of busi- ness conditions and had just enjoyed a long chat with the manager of the office of the National City Bank. He had visited the banking section and ex- pressed the opinion that Rio de Janerio is a city of wonderful resources and promise. Mr. Rosenberg left Washington sev- eral weeks ago on a wedding trip. While president of the bank, he is still actively engaged in the practice of law, having been a member of the Dis- trict of Columbia Bar Association for many years, He was one of the found- ers of the Bank of Commerce & Sav- ings and has been president of the in- stitution ever singe. Mr. Rosenberg” is a native of this city, where he was born in 1866. He is a member of the Board of Trade, Co- ROSENBERG STUDIES BUSINESS IN SOUTH AMERICAN FIELD MAURICE C. ROSENBERG. lumbia Historical Society, District Bankers' Association, Town and Coun- try Club, past master of Harmony Lodge, A. F. and A. M., and a director of Equitable Life Insurance Co. He served during the World War as one of the four-minute men, making many speeches and acting as a mem- ber of the legal advisory board of the Liberty loan staff. He has also served as legal counsel for many important or- ganizations, including the Merchants and Manufacturers’ Association. In politics he is a Republican. {Increase in World Wheat Crop Seen By U. S. Observers Total Yield of 2,337, 139,000 Bushels—Rye and Corn Figures Given. By the Associated Press. A world wheat crop of 2,337,139,000 bushels, an increase of almost 3 per cent over last year, was forecast today by the Department of Agriculture on the basis of reports from 26 countries. Reports from 19 countries indicated a world rye crop of 814,436,000 bushels or about 2 per cent less than last year's production. European production of feed grains— corn, barley and oats—was reported to total 20,788,000 short tons, as com- pared with 35,572,000 short tons last year, or a decrease of over 16 per cent. ‘The feed grain survey did not in- clude specific figures on the Rumanian crop, which are not available. - The. latter is estimated at about two-thirds of its total for last year, which would mean a decrease in European produc- tion of more than 18 per cent. The European corn crop Wwas given as 2,356,000 short tons for 1930, as compared with 2,968,000 short tons last year; oats, 14,524,000 short tons this year as against 18,315,000 last year; and barley, 12,906,000 short tons for i:gg as compared with 14,269,000 for DECREASE IN FARMS REVEALED BY CENSUS By the Assoclated Press. Farms decreased in the last decade in Georgia, New Jersey, Delaware, Maryland and the District of Columbia. A’ Census Bureau announcement to- day of the farm total in those States now as compared with 1920 follows: Georgia, 256,252 farms, as against 310,- 732 in 1920, a decrease of 54,480, or 17.5 per cent; New Jersey, 24,563, as against 29,702 in 1920, a decrease of 4,139, or 17.3 per cent; Delaware, 9,758, as against 10,140 in 1920, a decrease of 382, or 3.8 per cent; Maryland, 43,313, as against 47,908 in 1920, a decrease of 4,595, or 9.6 per cent; District of Co- lumbia, 106, as against 204 in 1920, & decrease of 98, or 48 per cent. PENDER SALES DROP. NEW YORK, September 6 (Special). —David Pender Grocery Co. reports gross sales for four weeks ended Au- t 30, 1930, of $1,135,793, compared with $1,145,449 for the corresponding period of 1929, a decrease of 0.8 per cent. Gross salés for the eight months ended August 30 were $10,315,803, com- pared with $10,105,068, an increase of 2.1 per cent. DIVIDEND DECLARED, NEW YORK, September 6 (Special). —The directors of Spencer Trask Fund, Inc., have declared a second quarterly dividend of 25 cents a share, payable September 30 to stockholders of record September 10. The initial quarterly dividend of 25 cents a share was paid on June 30 last. Wall Street Briefs By the Associated Press. Operatons of the Youngstown Sheet & Tube Co. will remain unchanged next week at 55 per cent of capacity. Car- negie Steel plants in the Youngstown district also will remain at 55 per cent. Newton Steel Co., Sharon Steel Hoop, Empire Steel and Mahoning Valley Steel Co. also will operate on sched- ules unchanged from this week. Sales of the Kroger Grocery & Bak- ing Co. for the four weeks ended Au- gust 30 totaled $19,808,508, a decrease of 9.4 per cent from $21,880,207 for the like period last year. Sales for the 34 weeks ended August 30 were $176,~ 548,895, a decrease of 6:1 per cent from $188,577,233 for the corresponding period last year. August 30 the com- pany had 5216 stores in operation -g;;nn 5607 on the same date of 1929. Gross sales of 23 leading chain store systems for the month of August showed & decline of 10 per cent compared with the same period last year, while for the eight months ended August 30 the sales for the same systems decreased 273 per cent compared with the like period of 1929, a compilation by George H. Burr & Co. shows. ‘The Melville Shoe Corp. reported August_sales of $2,113958, a decrease of $12,399 from sales for August, 1926. Sales for the first eight months this year totaled $18,910,721, an increase of 13.80 per cent over sales for the first eight months of 1929. August sales of S. H. Kress & Co. amounted to $5,124,685, a decrease of 3.6 per cent from $5,360,949 during August lué yuAr. s-tlel” for the eight mnnn;l CAN MAKERS SEEK FOREIGN BUSINESS American and Continental Companies Buy Into Large British Interests. | Special Dispatch to The Star. NEW YORK, September 6—Foreign expansion has featured the can-making industry this year, both American Can Co. and Continental Can Co., Inc., the two leading units, having announced the acquisition of interests in British companies. The can situation in Great Britain differs from that in the United States in several respects. The use of “general line” cans for tea, oils, paints, var- nishes, coffee, candy and many other tea, tobacco, candy, biscuits and similar commodities. Many cans reproduce famous paintings of Royal Academicians ;zd m?‘th‘er emlx:fyntm:mm. m’:nymhc- a) requent g spec Var- nished and rubbed down by hand. The large amount of British goods made for export also fosters the use of cans, as many foreign climates require tin con- tainers as protection against insects, moisture, dust and damage. Total Sales Compared. Total sales of general line cans fh Great Britain are estimated in the trade to be between $20,000,000 and $25,000,- 000 annually. Rather more thar one- half of the total production of such cans is from the plants of the Metal Box & Printing Industries, Inc., the largest can manufacturers in the Brit- ish Isles. Continental Can Co., Inc., acquired a substantial stock interest in L Comioast with the pigh n con Wi e highly develo] state of the general line can 1nduszyd. the canning of fruits and vegetables is in its infancy in Great Britain. A statement last June by Sir Edward Jones, chairman of the British National Food Canning Council, puts the num- ber of “open top” packers’ cans used for fruits and vegetables in the Brit- ish Isles in 1929 at between 16,000, 000 and 18,000,000 cans or “less than ;1'5 can for every three of the popu- on.” In that year the American produc- tion was 5,000,000,000 cans or approxi- mately 41 cans per person. Even al- for importations into Great Britain of 800,000,000 cans of meat, milk, fish and fruit, the British per capita consump- tion was far below that of the United States. Referring to fruit alone, Sir Edward Jones stated that British con- sumption was between five and six cans per capita, compared with well over 25 cans per capita in the United States. Status of Can Industry. Approximately 50 per cent of the open top can production in the United Kingdom is furnished by Britisn Can Co., Ltd, in which “American Can Co. recently acquired a substantial interest through British Can Shares, Inc. Undeveloped condition of the can industry in Great Britain 1s indicated by comparison of their two leading companies with the two leading .. meri- can companies, Although the popula- tion of Great Britain is approximatsly one-third that of the United States, the combined net worth of* Metal Box'& Printing Industries, Ltd., and British Can Co., Ltd., at the end of 1929 was but $9,384,375, compared with $210,- 059,786 for American Can Co. and Continental Can Co., Inc. In that year the two British companies made com- bined earnings of $1,344,378, compared with combined earnings of $31,692,504 for the two American companies. NEW YORK COTTON NEW YORK, September 6 (#)—Trad- ing in cotton was comparatively quiet in v | goods, t I mucmg lowing for large American exports and | BETTER BUSINESS INFINAL QUARTER SEENBY SEAGRAVE Corporation Executive Be- lieves Orderly Upward Trend Will Soon Begin. CITES MANY FACTORS POINTING TO REVIVAL Expects Steady Upswing Will Be Continued Into Year of 1931, BY JOHN F. SINCLAIR, !p;:lnl‘lvmlnnlch to The Star. YORK, September 6.—Wh asked Louls H. Seagrave, mefldenetno} the United Founders Corporation, if he believed that industry in the last quarter of 1930 would equal or ex- lnm' that of 1929, he'replied by say- g: “The final business quarter of 1929 was characterized by so many uncer- tainties that comparison is of dubious value. I am confident, however, that the final quarter of 1930 will witness more than a seasonal revival of busi- ness. I expect to see an orderly up- ward pro of luction and dis- tribution. It should prove a healthy quarter regardless of actual volume comparisons. I don't, however, expact any vigorous upswing in trade activity during the balance of this year. The Ln:; u,?,“‘n""g rru ml.lktely to witness the S Of recove the full swing of it.” ot Factors in Recovery. “Then what forces are making for business recovery?” I asked hlmf - “The reduction of surplus goods, in many cases to the point of elimina- tion, has brought production and con- sumption of goods back into an ap- frvx!mnte nce. This will be ffig- lowed by the speeding up of produc- tion and restocking of depleted shelves of dealers and merchants, It is be- coming daily more evident that cur- rent money rates are an increasingly important force for business recovery. The accumulative effect of lmfi' available capital and credit on rea- sonably attractive terms is a certainty, notyn l]:"eculll!lllqon. “Yes, ess is at the point of rally- ing from the setback. The influence of the drought has been exaggerated. The real business condition has been repre- sented as being in more of a alumpe&ln has actually been the case, because of comparisons with the abnormal preced- 1:: -’r‘u“iu l:e will not be alizing it is possible we cannot them. tariffs and other cause for apprehension.” “Are there any forces holding back business recovery?” “The forces which are holding back business recovery are Mz teristic, dency to compare the current situation with the abnormal year of 1929, Pessimism and the customary prognostication of all the bad things that might happen, which always come from the mouths of pessimists when things are mo- mentarily looking dark, will, in my opinion, give way to optimism when Autumn_business, characteristic of the season, begins to get under way. Al- ways in the past we have within a year or so looked back to laugh at the unreasonableness of such fears when fundamentals were beginning to grow sounder. A year from now we will all be smiling at current fuflml.nn." Mr. Seagrave, largely responsible for organizing and developing the Ameri- thecan Founders’ Corporation and its vast investment affiliations in hundreds of different industries throughout the world, was. born. at Council Bluffs, 18wa, 38 H);elu ago. PR . was graduated from the Spokane, Wash., High School, and then from the Unlversity of Washington 13 years ago. After a couple of years as a news- g:per man he became manager of the attle office of the Lumberman’s ‘Trust Co., In 1923, he was appointed sales manager of the First National Corporation of Boston, Mass., resigning that post to become president of the ’Amgzl%m Founders’ Trust of New York n . Famed as a foot ball player in his college days, he still takes a keen inter- est in sports. Platt’s Service. A ‘The resignation of Edmund Platt from the Federal Reserve Board is fore- cast by the announcement that he is to become an associate of George P. Rand in_the Marine Midland Co. of Buffalo. Mr. Platt has been vice president of the board almost continuously since his appointment by President Wilson. He was reappointed in August, 1928, to serve for the full term of 10 years, or until 1938. Up to the present he has been a member o. the board for a decade. Before that he was a member of Congress and chairman of the House Committee on Banking and Currency. ‘There is an intimation that Mr. Platt’s resignation was brought about to enable Eugene ‘Meyer, jr., to qualify as a mem- ber for the New York district. If this is true it raises a serious question of governmental policy. Has the Federal Reserve member been asked to resign to make room for some one else? If so it makes the board political, subject to the dictation and policy of the administration. To prevent this the Federal Reserve act provided for a 10-year term for the the market here today and prices seemed sensitive to small orders either way. An opening advance on relatively steady cables was followed by declines under week end realizing and some Southern selling, promoted by a favorable view of the weather situation, rather large pri- vate crop figures, and a feeling &lt recent covering had eased the tethnical position. After selling up to 11.5¢ at the opening, the new December eased off to 11.43, or 14 points net lower, and closed at 11.47. The general market closed barely steady at net declines of 9 to 13 points. Futures closed barely steady, 9 to 13 points lower; October, 11.52; December, 11.67; January, 11.77. New contracts— October, 11.30; December, 11.47-49; January, 11.55-57; March, 11.69-75; May, 11/86-87; July, 12.00. Spot, quiet: middlings, 11.55. B members, so that they should be able to remain independent. Mr. Platt has always been highly esteemed as a member of the board. ‘Edmund Platt has been for a decade one of the most valuable men on the "Whi ulati l"‘ill last en speculation was rife ear, and the sky was the limit in avuryfl!ln(, Mr. Platt kept his head and was known to be in favor of putting the credit breaks on long before they were ap- plied. He was in favor of higher re- (Copyright, 1930. by North American News- paper Aliiance. PAYS 505 DIVIDENDS. BOSTON, September 6 (Special).— The American Mutual Liability Insur- ance Co. announces its 505th consecu- tive dividend. This dividend is 20 per cent of the premium on all policies ex- or terminaf from October 1 October 31 inclusive of this year, §