Evening Star Newspaper, October 5, 1930, Page 75

News of Markets Pages 1 to 4 Part 6—14 Pages WASHINGTONBANKS ADD §10,000,000 10 SAVINGS DEPOSITS Great Increase Is Shown Since Break in New York Market. “D. C. EXCHANGE RESUMES SESSIONS ON SATURDAYS FINANCIAL AND CLASSIFIED he Sunday Star Institute Committee Planning First Forum Meeting of Winter Season. BY EDWARD C. STONE. ‘Washington banks have added more than $10,000,000 to their deposits since the New York Stock Market crash late last year. These same banks also gained over $3,500,000 between the controller’s calls of June 30, 1930, and September 24, according to an official tabulation com- piled by Audley A. P. Savage, auditor of the National Savings & Trust Co. On the call of December 31, 1929, the first after the market break, the local banks reported deposits of $255,783,- 346.85, in comparison with total de- its on September 24 last of $265,- 06,200.93, the difference being a gain of exactly $10,077,145.92. On the call of October 4, 1929, just before the stock tumble, deposits in Washington totaled $269,58,885.84. Deposits on June 30, 1930, the last eall previous to the one issued last Monday by the controller, were $262,- 052,926.88, so that the gain in the past three months in the Capital has been Just $3,653,274.05. Comparisons Made by Groups. Elsewhere in The Star's financial section the deposits on September 24 for every bank in the city are printed. ‘The national banks as a group gained $3,260,221.20 and the savings banks as & group added $569,407.37 to their de- posits. But the trust companies as a whole did not make as good a showing, their deposits being below the total figure for the June 30 call. ceptionally large in the savings banks and in the savings departments of the national banks and trust companies. This is a situation that always prevails in: times of depression, thrift coming rapidly to the front. The call came earlier in September than it ever has in the past. Had it come early in October, it is estimated that the local banks would have had very much larger deposits, with the October 1 dividend checks on deposit, as well as money placed in the banks by people who have been out of the city all Summer. As it is, however, local bankers are rr-unn:: with the bank figures, report banking situation in the D. C. Exchange Open Saturday. ‘The Washington Stock Exchange re- sumed Winter sessions yesterday after being closed since June. : ¢ Electric preferred opefied closed with a five-share while Merganthaler Linotype, the other | - type stock, saw one sale of but three shares at 95. Riggs National Bank stock figured in & single-share sale at 475. The remain- % trading was in bonds, $3,000 Railway & Electric 4s selling at 897% and $2,000 more at the same figure. most- issuss holding around recent lev- | els. Members, however, often express | regret that W. B. Hibbs no longer at- tends the exchange regularly. Mr, Hibbs was for many years the most lctlvcltrlm thr;e exchange ever h::é On et days often made a marl in l“:wck lynd his “buy or sell” offers . _'The active trading the_ late Charles J. Bell, especially in local bond issues, has never been equaled by any other member since his death. Institute Planning Forum. ‘The Forum Committee of Washing: A I consists of A. E. . A. Boper, tional Bank: 1. J. cashier of Riggs National Bank: Harold W. Burnside, assistant cashier of Riggs; T. Hunton Leith, assistant cashier, Se- ! curity Savings and Commercal. Plans are being made for the first forum meeting, which will probably be Teld on October 14 in the Willard room of the Willard Hotel, at which time a talk will be given on some subject of interest to all the banking profession and which will be followed by a general iscussion. Members of Washington Chapter will ve an opportunity to display their sl in minature golf. A tournament open to all members of the chapter will be held at 7 p.m. on Wednesday, Octo- ber 8. The Athletic Committes consists of J. E. McGreary, chairman; K. Birg- feld. W. H. Callan. G. P. Grau, jr.; L. H. Johnson and William Winstead. —— PLAN FOR GERMAN LOAN IS REPORTED COMPLETE By the Associated Press. NEW YORK, October 4.—Completion of arrangements for the $125,000,000 credit to be extended to the German government was reported in banking circles today, and it was believed that offering of the six months' notes would be made soon in the interna- tional markets. . The loan will contain three renewal elauses, so that its total life may be extended to a period of two years. The cost to the Reich, it was said, would be about 6 per cent. - Some bankers expect the notes will carry a 43 per cent _coupon. Lee, Higginson & Go. is beading the syndicate. QUARTERLY DIVIDEND. WILMINGTON, Del, October 4 WASHINGTON, B0, SUNDAY MORNING, OCTOBER 5, 1930. Classified Ads Pages S to 3 At the American Bankers’ Association convention in Cleveland important committee assignments were given to these Washington financiers: Francis G. , jr. (upper left); Robert V. Fleming (upper right), George O. Walson Addison, (lower left) and Howard Moran (lower Business News in Retrospect Trend Toward Branch Banking Proves to Be an Outstanding Feature ofe the Recent Convention at Cleveland. Positive By L A. FLEMING. ‘The future of the independent or unit bank was one of the chief sub- the Amzrlu: a Cleveland during the past week. It was plainly on trial with its defenders and critics as well, the former con- tending that unit banks bad not failed to fulfill their full duties but that where delinquent it was & case of mis- management on the part of officers. ‘Trend was very positively in the di- Tection of ch banking, communi- state wide and “it seems as ol T if the sentiment r {might be even enlarged when it was checked by a resolution refusing to per- mit enlargement of th: opportunities of the national banks beyond the privi- | leges given to the State banks by legis- latures of the States, this act confining sentiment to State-wide branch banking. While recognizing the unit banking system _the economic necessity for branch banking in rural was ““Tn his first authenticated article since his election Rome C. Stephenson, the newly elected president, predicted a further movement toward banking and larger units. districts “Branch :nklng u;d oup banking have enjoyed a remark- ble growth within the last few years: | there is no certainty that some weak- ness will not develop. There is no lack of praise for the stable manner in which_most of these banks are operat- ing. Rather certain it is that one or both of these systems will play a large part in future banking. They have de- veloped too far and entrenched them- selves too strongly to expect them to withdraw.” Passing of Strictly Savings Banks. The Committee on Savings of the Savings Banks' Division declared that the strictly savings banks were passing “the way of the Dodo” and that they would meet with greater competition from commercial banks, and their elim- ination will be helped along by branch banking. Howard Whipple, Bank of America of California, said: “The convenicnt geographical location of branch offices gives departmental banks’ dous advantage over the single locaton, single-charter savings bank.” State Division Fights Back. State bank division fought back at the prevalling sentiment in favor of branch banking and went on record in favor of the unit system. The resolu- tion adopted by the group follows: “We believe that sound, independent banks of adequate size, located in mar- kets which will properly support such a bank, will continue to provide ade- quate facilitiex to thousands of com- munities throughout the country. At the same time the group gave in- dorsement to the dual system of bank- ing as it now exists, State and national. Uniform reserves were recommended. Want Clear Title, The convention urg:d legislation to enable national banks acquiring trust companies by merger or otherwise to obtain clear titles to the trusts imposed on the trust company absorbed or merged. A declsion in a case of this (Special) —At & meeting of the direc- tors of Atlas Powder . the regular i dividend of 1% per cent on the ed tal stock was de- ible in cash November 1 to mh&’"" of record at the close of business Octover 20. GROCERY SALES OFF. | NEW YORK, oc'soh" ‘x(swm‘}: : thern Grocery Stores, Inc., repo Soous sales Tor the 28 days ended ber 27 of $1,199,100, compared wi $1,311,500 for the corresponding period of 1929, a decrease of 8.5 per cent. For month period Septem. ,%fl:‘.’m were $12,081,415, compared $11,347, increase P 179, an of 8.4 per kind adversely, came down from the Unitad States Circuit Court of Worces- ter County. Some Plant Anent Federal Reserve. ‘Membership in the Federal Reserve system was charged with being too ex- ive for the privileges attendant reto; this referring to the fact that the reserves carried with the reserve banks do not yleld returns as interest nor_give any share of their tremendous profits to the banks that furnish their capital. Aplennaer D. Noyes, financial editor of the New York Times, closed his address as to'g::-‘n “Let us not we:flnok the fact previous epochs revival, industrial achievement. lication of mew and president of the | operating branches a tremen- | right). D. . MEN ARE GIVEN IMPORTANT POSTS Other Service Are Allotted to Capital Financiers. Rome C. Stephenson, new president of the American Bankers' Association, has already put Washington on the banking and financial ‘map, four local bankers having been accorded special honors at the national convention just concluded in Cleveland. Francis G. Addison, jr., who represents the District Bankers' Association on the executive council of the American Bankers' Association, has been appoint- ed to membership on the Taxation Com- mittee, Federal Legislative Council, Fed- eral Legislative Committee, State Legis- lative Council and State Legislative Committee. George O. Walson, president of the Liberty National Bank and of the ‘Washington Stock Exchange, was made & member of the committee on public relations, and Howard Moran, vice president of the American Security & Trust Co., was placed on the Executive Committee of the Savings Bank Divi- stn. Mr. Walson served on the Public Relations Committee for several years and Mr. Moran has been acked to serve for three years more on a committee on which he was already a member. Robert V. Fleming, head of the Riggs National Bank, was elected a member of the executive council of the National Bank division of the association, being one of only five bankers chosen from all over the country for this service. It will be recalled that Mr. Fleming served last- year on a special committee dealing with taxation in connection with na- tioria]l’ banks. - - Enthusiastic Over Sessions. Local bankers who have returned from Cleveland are enthusiastic over the convention. President Hoover's ad- dress was naturally the outstanding highlight of the session. It was the first time a President of the United States had addressed the A. B. A. and he got a greeting long to be remem- bered. His address was considered bril- liant, informative and filled with com- mon sense. Local bankers sald yester- day that it was received with great fayor by all the bankers present. Next to President Hoover's address, the report of R. S. Hecht of New Orleans, chairman of the economic policy commission, on ‘“Problems We Must Meet,” stood out prominently, Mr. Addison sald yesterday. ‘The address of Alexander T. Noyes, financial editor of the New York Times, was another high spot. Mr. Noyes spoke on “Cycles of Prosperity.” He believes the bottom of the business depression has n reached and sees a slow but constant recovery In busi- ness. A. B, A. Stand Modified. Thornton Cooke, a Kansas City | banker, made an address on taxation that gripped his hearers, while Fred W. Sargent, president of the Chicago & Northwestern Railroad, spoke on the “Drift Toward Confiscation,” in which he scored Government competition with private business. He appealed to bankers for support in securing the prosperity of the rairoads and preserv- Ing the integrity of railroad invest- ments. recognition of the fallacies and blunders that had prevailed before the economic reckoning.” ‘The election of Edward S. Wolfe, for- merly connected with the District Ni tional Bank in official capacity, now president of the FPirst National of Bridgeport, as head of the national bank section, pleased local bankers. Guaranty Trust Views. In its regular monthly review of the business situation the Guaranty Trust Co. of New York City has one para- graph rudm{hu follows: ““There is nothing abnormal or unprece-~ dented about the present situation. It is & perfectly natural reaction, such been witnesced many times before and will continue to recur at intervals as long" as our economic organization is what it Is. The return of the next wave of prosperity is as inevitable and cer- tain as was the termination of the last wave, Slowly and surely the forces that will bring about the reaction are at work.” This certainly should be a crumb of comfort to the atient, I mflmn& who have vm.h?m and ‘.’3&«: wi our was not ‘based merely on aggressive .'_buccn‘er"!nfll_ every dollar or two slump in the mar- m;mm“u&m Committee Assignments and| DECLINE IN STOCK MARKET IS HALTED NEAR PANIG LEVEL Lack of Public Participation Held Favorable Factor in Situation. ECONOMIC DEPRESSION HAS WIDESPREAD EFFECT Present Conditions in This Country Reflect Unsettlement of Busi- ness Abroad. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, October 4.—The de- cline in the stock market this week stopped a little short of the low aver- age of November, 1929, though the rails went below the panic level, and scores of individual shares from the industrial list dropped further down the price e. With them went bonds, whose market position is affected more by earnings than by money conditions. Except for the much smaller volume of liquidation, it has been a period reminiscent of a year ago, but with the former vulnerable elements in it, such as extended credits in speculative enterprises, a_top-heavy market and & bewildered public committed to all sorts and conditions of new securities, en- tirely eliminated. What we are dealing with now 1s an economic situation more distressing than any since 1893. For the first time since this last major panic, practically every important country in the world, except France, is seriously affected. This fact makes it more difficult to de- termine the depths to which the depres- am”lumly g0 and the probable extent Trade Centers Linked. It is impossible today for one to travel in this country or in Europe and | not realize how inter-related domestic and foreign trade and credits have be- come since the war and how necessary it is that sound economics and stable governments should permanently pre- vail where, in the one case, raw ma- terials, and, in the other, manufactured products, are the source of national wealth and the basis of universal em- ployment. The people of the United States have had to learn in the last 12 months, and especially in the last six, through loss of trade and a sad shrink- age in the value of their investments, that what goes on in Great Britain, in Germany, in Russia and in South and Central America, directly affects their particular business and their individual incomes. 1Its application may be remote ni many instances, but traces of it will be found in nearly every distressed commercial situation that exists within our borders. Not only does the international char- acter of the ression render. analysis of it more difficult than in the past, but new elements have entered into it which confuse the outlook. They are nearly as much a cause as were the traditional factors of overspeculation in securities, real estate and commodities, | overproduction of finished goods and, as a corollary, unsound banking practices. British Outlook Obscure. As an illustration, take current condi- tions in Great Britain and in Germany. In the former country, whose' prospects are probably more obscure than those of any great power today, we find what has never before existed since the early part of the last century, namely, a polit- ical and soclal situation that ars down on industry nearly as hard as do the fall in commodities and the loss of trade through inability or an indisposi- tion to go along with modern methods in organization and in machinery. Were Great Britain able to release her- self from the grip of labor policies and high taxes and had she the former co- operation of her dominions, much of the present hopelessness in iness circles would disappear. Out of the crisis there is at last developing some unity and ini- tiative among industrialists, very little among political parties. In Germany cause and effect, in their relation to the existing depression in trade and in the market value of securi- ties, are difficult to separate. The great success of the National Socialists (Fascists) in the September elections has been credited to the severe economic conditions from which Germany has suffered. The world-wide repercussions of this episod have been entirely from its political significance. Politics Causes Confusion. The profession of propaganda to which the war gave birth is today play- ing many tricks on the public. It is little wonder that the man in the street gropes about trying to find a satisfactory explanation for all that is occurring and is taking toll of his wages or increment. Out of this propaganda develops the mental state, or psychology, that in 1929 made men feel that they were sitting on top of the world and that in 1930 has reduced them to blubbering converts to the doctrine of despair. It is unfortunately true that in Europe at present emphasis is being placed on the serious economic status in order to bring about political advantage. game has been played to a gerous degree both in Great Britain and in ‘Germany. Fortunately for the United States, it does not have to deal with this mixture of economics and politics. ‘While there will unquestionably be a political reac- tion from unemployment, low prices of agricultural products and the losses and depreciation in securities, one here is not always compelled td analyze the business situation both from the eco-| nomic or social and the political stand- point. For this reason, recovery in the United - States should be earlier than in Europe. And there is nothing that the rest of the world awaits with such eagerness at the moment as signs of permanent revival in this country. “Invalids” Drag on Business. At another important point the con- ditions, or business policies, now pre- vailing in America and in Europe are quite different from those in other years of crises. Probably the most important, and one tending to prolong the depres- sion, is the unwillingness to liquidate the bad situations and take the losses from them. No one wants to any one or be hurt. Consequently, very country there are great num- of corporate invalids being carried along whose permanent recovery would be assisted if they were made to start over on & sound basis of capital and efficiency. Along with this is the question of sustained wages, sustained retail pi s after a long term of falling prices of | commodities, and opportune methods in dealing with overproduction of wh t, coffee, rubber, wool, etc. In other wo: s, the world previously has has been made to take its 3 been willing or | medicine in POLITICAL FACTORS DELAY RECOVERY IN FOREIGN BUSINESS Reactions in U. S. to German Elections Decrease Invest- ments Abroad. MERCHANDISE STOCKS APPARENTLY DEFLATED Period of Low Prices and Losses Believed Ended—Outlook Better. Special Dispatch to The Star, NEW YORK, October 4 —Cable dis- patches to the Business Week give the following survey of business abroad for the week ending October 4: Europe.—The encouraging upsweep in business earlier in the month has given way to another period of uncertainty and suspended commitments. Although the basic economic conditions are shap- ing for the better, and from this point on would probably support a definite, if slow, recovery, the latent improvement cannot make headway against new political tensions which have grown out ot the German elections and the un- certainty of further developments and the spread of chauvinism in Poland, Jugoslavia and Austria. Another un- steadying factor is the varying nervous reactions in the United States to the German elections, to Russian dumping and the Sisto failure. There is even some fear that the United States may succumb to another wave of panic and hysteria. Sooner or later, accumlated unfulfilled requirements will find ex- pression. To this may be added 12 months’ unspent purchasing power which has been accumulating during the recent restricted period of consump- tion. Stocks of raw materials, except- ing coal and iron and steel, have been materially reduced, some of them to the point where any revival of demand would occasion shortages. Merchandise stocks are thoroughly deflated to hand- to-mouth levels. Prices on primary materials are believed to have reached levels where further changes would be in the nature of normal fluctuations around a consistent average. In short, the period of deflation and losses is ended. Favoring revival from this point is the etxreme plentifulness and cheap- ness of money, the necessity for re- stocking requirements and the re- sumption of suspended new enterprise and capital investment. British Business Dull. Great Britain.—Britain’s trade posi- tion remains dull with business very much out of spirits. Coal shows slight improvement in some qualities, but there is still no widespread develop- ment of general demand. Iron and steel is flat. Despite textile price cuts, demand is not picking up. Money re- mains easy with no demand either by investors or by trade. German and Australian financial difficulties and the break on Wall Street have caused marked reactions on the stock ex- changes. London attributes uneasiness of t'm metal market to Wall Street depressio.. and reaction to the German elections. The bears, active all week, seem to overlook moves which are under way now to cut down production and cur- tail visible lurpuel of tin. ‘The general trade position is strong- ly overshadowed by semi-political move- ments preparatory to sessions of the imperial conference, which opened Wed- nesday. Business has reacted favorably to two significant moves. The first is the joint memorandum frcm the Ped- eration of British Industries and from the Trade Union Congress suggesting that the conference set up a permanent empire secretariat with a permanent empire trade conference. The second is the formation of the National Coun cil for Industry, backed by such lead- ers as Sir William Morris, Lord Melchett and Sir Robert Horne, in all of whom | wa: business has confidence and respect. Germany’s Financial Program. Germany.—Already weikened by se- vere ‘depression, business is struggling desperately against the combined ad- verse influence of the crisis in German credits abroad and new heavy deflicts in the federal budget. Political chaos has caused a disastrous repercussion on domestic stock, bond and money mar- kets. Withdrawals of gold from the Reichsbank since the election are said to exceed 103,000,000 marks. Unem- ployment_increased nearly 100,000 in the first half of September, raising the total to 2,983,000. These reports cast added gloom over German business last week. Following prolonged closed delibera- tions, the government announced Tues- dey night a striking program of finan- cial administrative reform. Drastic cur- tailments of public expenditure are out- lined. The government realizes the im- possibility of providing immediate cover for the fresh deficit during the current fiscal year, estimated as high as 180,- 000,000, and has proposed to distribute the deficit over the next three years by means of banking credits to be negoti- ated. Herr Luther’s visit to the United States is linked with the project to his | secure bank credits of $100,000,000 to cover the prospective deficit. Main features of the reform program are: (1) the President and federal min- isters agree to & 20 per cent reduction of salaries, and invite members of the Reichstag to agree to the same reduc- tions; salarfes of all other public em- ployes to be reduced by 6 per cent, the yearly economy of this move to total something like 30 million dollars; (2) federal revenue to be curtailed by $25,- 000,000 by transferring certain items to states and communes; (3) reorgani- zation of unemployment insurance to liberate- the Reich from direct subsidies, effecting a saving of $60,000,000 and leaving only the so-called emergency unemployment relief, estimated at $100,- 000,000; (4) increase in the tobacco tax to yleld $40,000,000; (5) radical curtallment of appropriations on all government departments. France.—Business is routine in char- acter, evidencing neither any tencency to improve or retrograde. Sentiment is not alarmed over the German situ- ation though uneasiness is growing. Ir- ritation was occasioned by the failure of the naval negotiations with Italy and the British note suggesting arbitration looking toward comj ition of Brit- ish holders of French franc war bonds for the subsequent exchange deprecia- ce herself last year tion. While brought arbitration proceedlng inst J cslavia and Brazl on half of ~h holders of pre-war bonds, pro- ngs which The Hague court sus- d, these bonds contanied gold or | exchange clauses, whereas the wch bonds held in Britain are ex- se¢ in francs only. BY IRVING T. BUSH, President of the Bush Terminal Co. an "o Rternational Bxport Corporation. As Told to J. V. Fitz Gerald. What the world needs today is an economic disarmament conference. While I would not presume to tell the President of the United States what he ought to do, the call for such a conference - might well come from Mr. Hoover. I have just re-| turned from an ex- tended trip through Europe, and what | 1 saw there im- pressed upon me the fact that the United States must take the lead in any program for economic peace. I hasten to ex- plain exactly what I mean before any i can | ot Irving T. Bush. Me of favoring the abolition of tariffs: I believe in tariffs. They are the | most effective means of "equalizing | ‘wages and the standard of living. How can any one survey the astonishing de- velopment of manufacturing in the United States and deny that much of it is due to the consistent policy of protection? Tariff Idea Strong Medicine, It is the contemplation .of this phenomenon that has convinced the people of Europe that they ought to| dose her industries out of the same | bottle. Watchers abroad have seen the | United States grow within a few gen- | erations from a straggling, loose- Jjointed fringe of agricultural colonies to the wealthiest and most powerful nation in the world. They have seen the sclence of mass Producuon develop behind American tariffs and they have | marveled at the workings of that other Americanism—high wages for employes. ‘The tariff idea is strong medicine. | Like most stimulants, it is all right if | used with caution, but it becomes a bad habit when indulged to excess. Europe | got busy with tariff agitation immedi- | ately after the United States raised her rates considerably as European coun- | tries threaten to follow the American lead and enact higher barriers, the United States would be the logical coun- try to suggest a conference, the pur- pose of which would be the rationaliza- tion of tariffs on a co-ordinate scale. i I reslize that this is a revolutionary proposal and that a lot of private and | professional scoffers will arise to hoot at it. But in my opinion such a con- | ference holds the greatest hope for the | future of foreign trade. Thirty years | 2go the suggestion that a group of men | should sit down at tables and talk out the Fl’obknu of competitive armaments | | would have appeared fantastic. We | have become accustomed to secing such | matters settled in a sane and friendly | interchange of views. Why could not | the statesmen and business leaders of the world do the same thing with eco- nomic ;questions? Dawes Commissions’ Work. A step in this direction has already | been taken. The work of the Dawes | Commission was economic. It dealt with: debts on the surface, but beneath lay the industrial syst:m of the world. The operation was successful to the point that the patient nearly died. The | Young Commission followed. It is too | early to speak definitely of its success. The important thing is that we are get- | ting ‘into the habit of talking frankly | with the people of other countries about | armaments, debts, international dis- putes and even economic_problems. I would like very much to see the present administration at Washington call together the governments of all na- tions for such a gathering. Surely this lis a step in the right direction. The time should be as soon as possible—the place, Washington. Not only would an economic disarm- | ament conference do much to stimulate the exchange of goods on which all business lives, but it would help remove dangerous commercial rivalries which are one of the most fruitful causes of Ts. ‘What could & conference do when all nations seem bent on an orgy of tariff building? Pirst, it would recognize the legiti- mate national. uses of a tariff, It should be a bulwark behind which a nation could erect an industry which it is best fitted to perfect. It is recog- nized that countries and races have a genius for specialization, just as some men have talents in particular lines. This is what brought about foreign trade in the first place. In primitive tribes each family or group was self-contained. It made every necessity of life. But the migra- tion of one person or family to another locality brought them in contact with other peoples. The emigrants introduced to their hosts the implements and processes with which they were familiar. In going back: to the old cave to visit the home folk they carried with them the handiwork of the distant tribe. Thus, one group that made better bows or canoes than another found a demand {ord its product. That was foreign rade. Speclalization in Trade. The process has continued until spe- cializatlon has reached a high state, both with the individual and the nation. The French are marvelous designers and workers in objects of art. The Bohemians are makers of fine glass- ware. Britain is a shipping country. Germany's. sclentific and chemical products are admired by the world. The United States has outdistanced all com- criminatory and vitiates existing agree- ments, by which American films enter- ing Frnace are limited to seven imports for each French film produced; whereas American films entering Germany can enter only film for film with German production, and only within a limit fixed advance by the government. The new Franco-German reciprocal agree- ment would extend virtually national status to fllms procuced in one of the countries and marketed in the other | without regard for the existing quota restrictions still binding on America. Italy.—August business statistics, just released, confirm the then current re- ports that business was declining. The Federation of Italian Industries, on the other hand, in a receat meeting ex- pressed optimism over the relative re- sistance of Italian industry to world depression. The belief was general that certain branches of industry have al- ready turned the corner and are now on the upgrade. Confidence in the gen- eral prospects for improvement was widespread. Immediate industrial conditions are spotty. Wool, cotton and motors are sagging. Some optimism has been cre- ated with the beginning of the execu- tion of the government public works program, the recent increase in ship- | building orders, both foreign and do- | mestic, and the increase in orders for Iron and steel are already the stimulus of these fresh “Trade Trends and Qutlook President of Bush Terminal Company Believes the United States Must Take Lead in Promoting a Program for Economic Peace. petitors in the making of automobiles and certain other machines. Here is an inevitable economic law which can be seen at work all around us. Tariffs cannot destroy this law. My idea is that the rations should abandon what seems to be a feverish attempt fo turn back to the status of primitive peoples and live unto them- selves. Such a theory is fantastic when the world is daily shrinking to smaller proportions through the perfection of | transport. The world must move forward as a unit. All intelligent students are giving up the idea that one nation can profit by the ruin of another. The raising of wages and the widening of humanity's }'equl;tn‘:nu form the only safe basis lor business progress. Su eve naked black in Africa coul dm:‘flordeg buy shoes. The benefit to trade the world over would be incalculable. So, the way to lift the world out of the depression is not by each nation trying to corner all productive activity at the expense of its neighbors, but by admitting the rights of every country. Each has a right to produce and manu- facture as well as sell the articles which it is fitted by temperament, inherited qualities, climatic conditions and natural location to make more cheaply or better than its neighbors. This is bound to happen anyhow. An inevitable law is bringing it about. We can walt to see it accomplished by slow and painful evolution, or we can help by intelligent co-operation. Europe Looks to U. 8. 1 Industrial Europe has come to look to the United States for leadership. It is following the United States in elevating its' standards of living by the payment of higher wages. Rightly or wrongly, | Europe blames the United States for the slump in trade, and by the same token it looks to the United States for the re- | covery of business. On my return from Europe I found that the tempo of commerce was still slow, that the unemployment problem remained unsolved. Yet the United States is vastly better off than any Eu- ropean nation except France. That is true not only of the condition of indus- try, but of the outlook for the future. The natural inclination and the vast wealth of America are insurance against long-continued pessimism. Conditions are discouraging. But I can discover no | possibility of their getting worse—and | there is every indication that they must become better. Just now it looks as if the principal thing lacking is courage to go ahead. That is true of business executives as well as consumers. Many of them are sitting on vast surplus funds that could now be wisely and profitably employed in extensions. I wouldn't dare make such a state- ment if my own conscience was not easy. During the last year I have been working to creaté in Europe an impor- tant systeni for foreign trade distribu- tion. An element in this system is a new document which we call a service certif- icate. It cuts the red tape caused the use of the many ipping papers heretofore necessary. Goods can be sent abroad by means of this single certifi- cate and immediate advances obtained from ‘banks. It opens foreigh flelds to many of our manufacturers who have not had the capital or organization nec- essary to the development of distant markets. ‘We are thinking internationally. What we are doing in a small way can be ac- complished on a vastly larger scale by the action of resourceful men brought together by the common need for inter- national economic disarmament. (Copyright. 1930. by North American News- Daper Alliance.) AUTOMOBILE OUTPUT DROPS DURING WEEK Recession Particularly Noticeable | in Low-Priced Models—Work- ing Hours Rationed. Special Dispatch to The Sta: ¥ IT, October 4.—Further - re- cession in ‘volume of automobile man- ufaeturing- 45 in progress, conforming to reduced demands of distribution. Anparently. .the Summer. layoff of two to three weeks decreed by numerous plants had the effect of reducing dealer stocks, byt . not enough to establish a surplus of orders for the factories to work ahead on and thereby make ‘ ‘good the predictions and a September- - revivdl that would general.. - All companies, however, are not af- fected alike. Those that have the newer 1931 models out are experiencing activity that may be described as fair under the circumstances. Among them are Buick, Studebaker, Packard and othérs whose recent introductions have stimulated busihess for them. Contrasted 'with' this ‘group are the lower-priced makes, among which the seasonal. model changes are few as yet. As a consequence production of them is lagging below previous levels. It is lessened volume in this division of the industry that is likely to affect September returns adversely. ‘Whereas the normal weekly volume of all plants should reach approximately 100,000 cars, the weekly total now being maintained is estimated to be ranging about 50,000. To keep up business sentiment, the producers are making special effort to ration the working hours among as many employes as possible in order to maintain factory morale and standards of finished work in various departments, (Copyright, 1930.) - . Midland Bank Has 242 Branches In London Aldone A map contained in monthly review of the Midland Bank, Ltd., showing the distribution of over 2,070 branches of the Midland Bank in the Counties of England and Wales, and the number of offices of its afiliations in Scotland and Northern Ireland, indicates that the bank has 242 branches in London alone, which is more than the com- bined branches of the Corn Ex- Bank Trus United States and Manufacturers’ Trust Co., in the Greater New York area. A recent tabulation by the American Banker showed that there are nnuzlr‘.:‘ch banking tmu {n Manhattan. ork- shire County, the Midland branch banks number 315, while in Lan- cashire there are 179. There are 83 In Glamorgan, 76 in Warwick and_Lincolnshire 61. Altogether 2,500 branches rated Midlan three” aied (Coprrisht. PROSPEROUS TIMES 10 FOLLOW TRADE DROP. SAYS GRACE Bethlehem Steel Presiden: Believes Way Has Been Paved for Recovery. DECLARES NO OBSTACLE TO IMPROVEMENT EXISTS Advocates Maintenance of Present Wage Scales and Increase in Employment. BY JOHN F. SINCLAIR. Special Dispatch to The Star, NEW YORK, October 4.—Eugene G. Grace, president of the Bethlehem Steel Co., sees in the present depression & time of readjustment as a “forerunner of increasingly prosperous times.” “In our industry the most satisfac- tory sign for the last quarter of 1930 is that steel prices are slowly but steadily strengthening, especially for the principal products,” said Mr. Grace. More satisfactory operating and em- ployment conditions will develop if prices continue to be stabilized, but it ls not reasonable to expect the last quarter of 1930 to exceed or equal the corresponding period in 1929.” “Why i5 it not reasonable?” “It is generally recognized that the country is in a period of readjustment. To look for a too rapid return to peak conditions would be unjustifiable,” he replied. “It is much better to discount the future and find that conditions may exceed anticipation than to expect too much and have hope deferred. The stabilizing of prices after a readjust- ment is usually the forerunner to nor- mal business, and that is one of the outstanding constructive factors in the present situation.” Good Manzgement. When I asked him what was the most effective force at the prcsent time making for business recovery, he said: “Good management. Times of busi- ness readjustment bring about a more searching analysis of costs and a prun- ing of unessential expenditures. Such economies, however, must be undertaken with broad vision. It has been tradi- tional in the steel industry to utilize times of quiet business for construction and reconstruction of plant equipment. We have been doing a great deal of that during the current year, and there have been similar developments in other companies.” ‘When I asked him why business was not coming back faster than it is, and whether there were any forces that were holding back such recovery, he re- plied that he knew. of none. “The Nation overproduced and there ‘was an extra volume of buying in 1829, which- brought about ‘an inevitable re- action,” said the steel manufacturer. “Every effort must be made to main- tain the wage scale and spread out em- ployment as effectively as - possible. Business men in this present situation have maintained a more constructive attitude than at any similar time in the past, and that itself will hasten re- covery.” During his experience in industry Mr. Grace has gone through all the ups and downs of the business cycle, but that has not thrown him off his balance. “The trend of the general business curve “in the United States has been upward from the beginning,” he con- tinued. “There are -various peaks and valleys, but the gemeral direction has always been one of increising pros- perity. A Nation of 120,000,000 people will soon use up the oversupply of houses, automobiles and the scores of other = products which make up our standard of living. As soon as that oc- curs there will be a rapid return to normal business conditions.” “And in the meantime what's to be done?” I asked. “Meanwhile, steps should be taken to- ward improving our fundamental struc- ture. We should enlarge our merchant marine, so as not to be dependent upon foreign bottoms for our tsadé. The pro- gram of highway and municipal con- struction advocated at Washington re- quires time before it becomes effective, but we shall soon be feeling the good effects from that direction. All lines of business have ‘problenis of retrench- be | ment, but the history of the country in- dicates that such conditions have al- ways been the forerunner of increas- ingly prosperous times.” Vatican State Mortopoly. ‘When Mussolini made his agreement with the Vatican whereby the Vatican State again came into being as & po- litically free government, it carried with it the salt and tobacco monopolies which the Italian government had con- trolled. . . The sale of these two commodities are made to residents of the Vatican City and to those persons whose voca- tions cause them to spend most of their time within the city limits, according to_the Department of Commerce. From the preliminary reports, the Vatican State monopoly has resulted in an incr-ase in the prices of both ‘to- bacco and salt. Before the state was created the inhabitants of the Vatican City had imported these products from Italian factories almost at cost. Still the advanced prices now are less than those in effect throughout Italy. It is understood that the Vatican State's profits on tobacco range from 50 to 70 per cent, as compared to 200 to 300 per cent realized by the Italian government. Automobiles in China. China, with its 300,000,000 people, had only 35,489 automobiles registered on last January 1. Above 77 per cent of the cars registered are of American make, an increase of 24 per cent over the number in operation on January 1, 1929. ‘There are many Chinese cities of 100,000 to 200,000 people that have never seen an automobile. China has few good roads—most of its roads are impassable. This is one of the reasons for the limited sale of cars in that vast republic. Still, the number of automobiles imported into China during 1929 was twice as large as in 1928. The figures are as follows: In 1925 the number was 3246; in 1926, 4,609; in 1927, 3,519; in 1928, 4,204; in 1929, 8,3869. Shanghai, with 2,750,000 Chinese and 55,000 foreigners, has the largest num- ber of cars of any city in the nation. But the government of China is coming more stabilized. Quick trans- portation is a necessity, under modern conditions. Tt is only a matter of time when China will be one of the greatest markets for American cars. 1070 by North Amec:'s paper Alliance.) - . SILVER QUOTATIONS. ' YORK, October 4 (#)—Bar sil- 1 News-