Evening Star Newspaper, October 12, 1930, Page 73

News of Markets Pages 1 to 4 FINANCIAL AND CLASSIFIED @he Sunday Star Part 6—14 Pages GAPITAL TRACTION ENDS WEEK AT 54 ON EXGHANGE HERE September Report Expected to Show Increase in Com- pany’s Earnings. FIFTH DISTRICT RETAIL SALES SHOWN BY CITIES _'l'reunry'l $102,525,000 New Issne Far Oversubscribed—Echoes of Bankers’ Convention. BY EDWARD C. STONE. Capital Traction stock closed the week on the Washington Stock Ex- change yesterday with two small sales at 54. This was fractionally higher than the low for the week, which was also the lowest price ever recorded for the local issue. The market wound up with a very small spread between the bid and asked prices, 54 being offered and 54! asked. Holders of the more than 2,300 shares outstanding are now awaiting with keen interest the September financial state- ment, as it will give the best indication et as what the higher carfares are ikely to mean in the long run. The report will be available in a few days and is expected in the financial district to show a gain over September, 1929. Two bank stocks figured in the trad- ing yesterday. Riggs National sold a 455 on a small turnover and American Security & Trust steck came out at 870, also on a small lot sale. Both quotations were lower than the last previous sales in these two issues. Other transactions during the session included sales in Potomac Electric Power 5% per cent preferred at 108%j, the 6 per cent preferred at 111; Mer- genthaler Linotype at 93'2, and Wood- ward & Lothrop preferred at 107. Notice was received on the exchange that the directors of the ‘Mono- type Machine Co. had declared the usual 13 per cent dividend due at this time and also the extra 3 per cent dividend which has recently been de- clared every quarter. The two divi- dends are payable November 29 to shareholders record November 19. Securities in the unlisted department were called off and few changes in quo- tations noted. Attention was called to the fact that the exchange will be closed tomorrow, Columbus day, al- t.houflzh the local banks are open as usual. The New York Stock Exchange closes, which means that the tickers will be silent in all the Washin; broker offices. v Investors Picking Up Stocks. Securities are not going begging, as rs on the surface; '.gey are being absorbed by that large part of our population which is not stock market minded but still holds firm to the faith that a business revival is in the 3 the Piancial World will say in its next issue. Indications of this are seen in the wnn:;:m increase in shareholders reported by corporations. “The Nation’s financial background is too strong for the ultimate business re- covery to be lon cation says. g chasing power is not impaired and our ample cash resources need only the re- turn of confidence to invigorate them ;:’u‘e u::m immediate ces when they are/steeped moods and m"@’ Under such cir- cumstancés, they must be considered from the broad viewpoint, unrelated to the present fluctuations, of the next major movement which is destined by the natural law of cycles to assume a constructive form.” Investment bankers in Washington made similar statements during the week. There has been good invest- ment buying in the market for several weeks, they assert, but it has not been sufficient to check the downward move- ment. They insist, however, that such buying exists in a large measure. Retall Sales Gratifying. Announcement that retail sales in Washington for the first nine months of the present year were only 1.5 per cent under the corresponding period last year caused general satisfaction here. ” Percentage comparisons for other Jeading cities in the fifth Reserve dis- trict, with the corresponding periods in 1929, are given below: Sept. Jan.-Sept L 1930. Citles. Asheville, N. C. Washington, Winston-8aiem. N. C. ther citles. Sul Dasvoanaca Salinmeamons! ‘The Carolina: Of the 74 stores which sent in Sep- tember figures, 10 reported higher fig- ures than for September, 1929, while 64 stores failed to come up to the level of the previous year's business, the Federal Reserve Bank of Richmond reported. Treasury Issue Oversubscribed. The Treasury's $102,525,000 issue of 62-day Treasury bills was oversub- scribed by almost $260,000,000. The bills, offered on October 7, to care for the immediate needs of the Government, are to be issued in two series, about half to be dated October 15 and maturing December 16, and the remainder to be dated October 16 and maturing December 17. ‘The average price of the bills to be issued is about 99.680. The average rate on a bank discount basis is about 1.85 per cent, the Treasury announced Yesterday. A. B. A. Convention Echoes. John G. Lonsdale, retiring president of the association, stated during the week at Cleveland, in the course of his address, that all taxes are too high and there is a growing bellef that tax systems do not spread costs equitably. gton | of sound through space, | 9| itles. | | | | Trade Trend WASHINGTON, B.;. C., SUNDAY MORNING, OCTOBER 12, Classified Ads Pages S to 13 1930. and Outlook Radio Corporation Head Urges Every Industrial Firm to Make Its Immediate Task an Early Resumption of Normal Activity—Cites Duty of Workers. BY DAVID SARNOFF, sider: adi ratio e, % thta T g B Gt ‘There are two things to be borne in mind in any consideration of current business conditions and economic trends. Pirst, however acute some of us may have regarded the situation in America during recent months, business in the United States has been much bet- ter than it has been in Europe. Second, this last depression can be made to serve a very useful purpose if industry utilizes its lessons and learps to treat causes before they create their inju- rious efTect. I believe—and the industry with which I am asso- clated is proceed- ing on this basis—that the:e is going to be a general revival of trade. Not only are there indications pointing in that direction but there are some evidences that a recovery already is setting in. ‘We cannot predict with any assurance when this will reach a restoration of full prosperity. If we were able to make an exact determination of busi- ness trends over a future period we would be so closely in charge of all the governing factors of trade that clogged markets, depressions and unemployment no longer would be bogies. As far as I know, about the only thing we can forecast without exercis- ing a control over it is the weather, and that for only a few days ahead. Even there we sometimes find a downpour | when we expect a pleasant day. Task of Industry. Our immediate task, as I see It, is for each industry to make the best contri- bution it can toward a resumption of normal conditions. We all know that eventually complete business and indus- trial recovery will come. The problem is to bring it about as quickly as possi- ble, and it is not a solution to stand by idly and predict and await returning prosperity merely because prosperity | always has been restored after a slump. | Radio has been an important factor in the gratifying business conditions that prevailed for a number of years prior to last Autumn. But in some respects, radio does not afford a normal or average example of an American | industry. It is still new. It has been | moving rapidly over a period of eight| or ten years in an endeavor to get the utmost of public value out of a new| scientific discovery, the transmission | David Sarnoff. Improvement has followed improve- ment, and almost every year a product | has been offerd by different radio manufacturers so superior to old g:; vices that an abnormal ce been created. This has meant the| employment of many new men, and it | has meant an expended market for many other industries. National prosperity is always stim- ulated by the creation of new and| useful arts. But in many instances these have been built upon the foun- dations or over the ashes of some mpefluvs but no longer serviceable id not destroy any other come. But to envision the future of radio we must consider thé scope of its possible service. ‘What is the ultimate objective of our great industrial development, our so- called Machine Age? Is it not more | leisure, greater liberation of the indi- vidual, greater reliance upon the forces of Nature? All mankind covets leisure— not the leisure of idleness, but leisure that gives opportunity to know life in its fullness, to enjoy wholesome recrea- tion, to_acquire new information. Man covets leisure to experience the emo- tions that surge to the dramatic arts, to feel the charm and inspiration of music. In giving to our hours of leisure a higher purpose and a greater worth, radio has the opportunity for its most conspicuous contribution. Its aim is en- tertainment, education and instruction of the highest attainable order. Its de- vices must be the best that can be con- structed to achieve that end. With such a mission there can be no final goal, and for such an industry no real sat- uration point. Conditions Abroad. I mentioned that conditions in the United States are better than they have been in Europe, I returned from Europe last month and while there had a good opportunity to observe conditions in England, Prance and Germany. Busi- ness in France is surprisingly good, but the depression is very noticeable in Eng- land and Germany. Europe's economic and financial situation seems to be de- dent for its improvement upon that the United States. It is now generally recognized in Eu- rope that the United States is the key nation in world economics. With Eu- rope waiting for the United States to resume full-scale operations, the prob- lems of the United States assume a world-wide significance. The problems cannot be viewed from the standpoint of one or two American ipdustries; it is international in scope. (Copyright, 1930, by North American News- aper Alliance.) RENTS ARE NOW BACK T0 LEVELS OF 1920 Surplus of Loanable Funds Ex- pected to Help Present Real Estate Situation. Spectal Dispatch to The Stas NEW YORK, October 11.—Rents are | back to 1920 levels. The difference, as noted by the Alexander Hamilton In- stitute’s current weekly, is that whereas in 1920 the trend was upward, today the trend is a continuation of a six- year decline, ‘The decline, which in its early stages reflected overconstruction, is ndw ag- gravated by hing pu: power. Tenants are taking advantage of an oversupply of space by moving | freely wherever Ignt concessions are offered. Pending readjustment of values on| the basis of reduced rents, buyers are slow. Decline in building costs affects unfavorably the market value of ex- isting improvements. Purthermore, pur- chasing power is now restricted. The sales market suffers also through forced sales due to foreclosures of mort- It stimulated and gave | those businesses which | might be regarded as its nearest com- | petitors. It brought into existence the | practical talking moving picture and | it contributed new methods of record- | ’m( it revitilized talking m.u:hlnel n 3 Of course, radio has made its rapid strides because the public has been re- | ceptive and able to buy its products. | We anticipate a continuation of that | ability. We have set about to con- tribute in every way possible toward | resumption of business by beginning | (ulll scale production operations our- selyes. “Back to Work” Movement, ‘The R. C. A. Victor Co. has centralized its manufacturing activities at Camden, N. J, where that municipality inaugu- rated a “back to work” movement, which it was hoped would be of en- couragement to other industrial areas and a general stimulus to business throughout the United States. In many other industries new lines of products are now being offered, new models are being placed on the market and there is much evidence that in- creased trade activity is anticipated | during the remainder of the Autumn and the Winter months. ams are being enlarged and extend In radlo, the recent wol series acted as a stimulant for sales, and the congressional campaign which is now in progress, and which probably more than any previous campaign in the history of American muu is be- ing carried on by radio, also been responsible for increased radio activ- There are always many remedies sug- gested whenever business shows a slight falling off, and when the depression has been of real duration those who wish to offer a diagnosis and suggest a’cure are much more numerous. 1 dg not minimize the importance of thit kind of discussion. It is only by the application of a great deal of effort and by much thought that the problem of removing these pronounced drops in | business can be solved. Certainly every industrial leader in the United States should consider at this time whether his own business has been conducted in a manner that would contribute to the general stabil- ity of the national economic structure. If it has not, very likely it has not been conducted in & manner that will yleld the best results over a sustained period of operation. Service of Radio Industry. ‘There is a great deal of difference between sound thinking and idle dis- cussion. There has been a great deal of talk by professional optimists, who usually are amiable but indiscreet, and by professional pessimists who very frequently are purposeful and who seek to profit by the thorns they sow. These He believes that one of the formidable restraints to business at the present time is mounting taxation. Craig B. Hazlewood stressed the need for better bank management. “Whether we operate unit banks, branches or ups, we must improve our manage- :::n!p‘" He advocated the unit banking system and stated that unit bank fail- ures are no indication that that system is a fallure. He ma%tained that the zflnflp‘l cause of trouble in banking due to lack of good management. Assigned as Military Advisers. Lieut. Col. George V. Strong, Infantry, at Fort Leavenworth, Kans, and Maj. Robert L. Walsh, Alr s, at Paris, France, have been detailed as military advisers to the United States delegation at the seventh meeting of “the Preparatory Commission for the " Disarmament, to be held in Geneva, Rwitzerland, beginning November 6. two groups make no contribution, either in periods of prosperity or of stress. ‘They trall, and should, in the rear of the marching column. ‘The substance of the United States and its reliance in periods of economic readjustment are the workers, whether they be artisans or executives, who have the energy to attempt and the courage and determination to go ahead. Business cannot succeed by being timid. It should not be shaken or misled either by the ll%% loans. e surplus of loanable funds, how- | ever, as shown low interest rates, | promises to save the situation, says the institute. By virtue of this condition mortgage money is in good supply and purchases can be financed readily, while borrowing on mortgage security | is greatly facilitated. DEPOSITS ARE LOWER IN NEW YORK BANKS Reports Differ From Showing Made in Washington After Con- . troller's Recent Call. New York City's 19 largest banks and trust companies in every case showed | lower deposit totals at the call as of _September 24, compared with June 30 last. ‘The chief factor in reduced deposits is the decreased turnover of banking funds resulting directly from smaller volume on the New York Stock Ex- change and the generally low level of business activity. Another factor in reduced deposits is the fact that the most recent bank call was six days prior to the heavy turn- over of October 1, whereas the preced- ing one was on the date when finan- cial transactions are at a midyear peak, June 30. Many if not all the ipcal banking institutions had much rger deposits on October 1 than on the bank call date and would have made a much more favorable compari- son at that time with June 30. Conditions in New York are quite different from those prevailing in ‘Washington on the last call. The banks in this city reported a total gain of $3,653,274 in deposits since June 30. As noted several days ago, a call date close to Octaber 1 would have shown a still larger increase here. The increase in savings deposits in New York does not seem to be boosting the totals as they have done in Washington for many months. A S, NEW YORK, October 11 (#).—An opening advance in cotton was followed by reactions of several points under week end realizing influenced by weak- ness in stocks and grain, but the mar- ket firmed up again in the late trading |on covering and trade buying. New December, after selling off to 10.43, ad- vanced to 10.53 and closed at 1052. ‘The general market closed steady at net | advances of 12 to 13 points. Futures closed very steady, 12 to 13 | points higher. October, 10.29, nominal; December, 1053, nominal; January, | 10.63, nominal; new contracts, October, 10.32; December, 10.52a10.53; January, 10.63a10.64; March, 10.88a10.85; May, |11001a11.02; ~July, 11a18al1.21; spot, | steady; middling, 10.45. January, old . January,- n misgivings of the professional “bear” or | }! the misleading of the bl professional b As for the ultimate service of the |9 radio industry, I have a profound belief chat the full story of radio development has not been unfolded. We cannot forecast the future in mere terms of new equipment and new devices. How futile it would have been to attempt 10 years ago. New agencies for | instrumental- CHICAGO DAIRY MARKET. FEAR PSYCHOLOGY | PERVADES STREET AS STOCKS DECLINE Deflation of Market During Week Has Made Yields. Attractive. PANICKY LIQUIDATION HITS FOREIGN EQUITIES Free Offerings of Securities Follow Political Disturbances Abroad. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, October 11 —It is diffi- | cult to say how much of the 45-point | average decline in stocks in the past month should be charged against the Fascist success in Germany and the civil war that has broken out this week in Brazil. Both episodes have empha- sized the world-wide political and social disturbances and have revealed their intimate bearing on economic condi- tions. They have also added to the fear that has for months possessed capital- istic interests which have, in succession, witnessed an unprecedented shrinkage in securities, a sharp drop in corpora- tion earnings, commodity prices the lowest during the present century and a drought that has brought great dis- tress to & considerable portion of the | normal wealth-producing population of the country. The chief sufferers in this latest market decline are of a erent cali- ber from those who saw r fortunes wiped out a year ago. are from the wealthy classes. Thé general pub- lic was 50 terribly hurt last October and November that it is still nursing its injuries. It is not an important market factor today. Fear Psychology. On the other hand large operators in stocks, trading corporations, private capitalists who have in recent years greatly increased their ratio of “equi- ties” over fixed Interest securities and concerns that have confused their func- tions as brokers with those of under- writers and promoters, are all affected, either mentally or as to loan margins, by the steady decline in the shares which they own or have hypothecated. uently, there is prevalent a fear psychology in Wall Street similar to that from which business has suf- fered in the past six months. Unfortu- nately, just as there were beginning to be signs of a breaking of the clouds over some portions of the business world, with purchases of commodities when they had dropped below the cost of production and of finished goods to fill in exhausted supplies, the new un- settlement in securities, domestic and foreign, has given trade another chill. Stock exchange failures have disturbed the confidence of investors. Investment Yields Attractive. From the standpoint of investment return, which, though an old-fashioned e of price, still has its followers, opportunities today are extremely tempting to those who have free capital to employ. Taking ten stocks! whose dividends are amply secured by current earnings or cash re- serves, namely United States Steel, American Telephone & Telegraph, Con- solidated Gas, Eastman Kodak, Stand- ard Ofl of New Jersey, Texas Corpor- ation, General Motors, New York Cen- tral, Pennsylvania and Great Northern, we find that against their average yield a year ago of about 3.15 per cent there is now an average of over 5.50 per cent. In contrast with the orderly decline in stocks this week has been the pan- icky liquidation of South American and German dollar bonds. The American ublic is temperamentally unqualified to golfl foreign investments. With a majority, either as individuals or as in- stitutions, more as a gamble and a means of averaging up their income returns than as permanent participations in the de- velopment of overseas countries. Germany's Credit Record. Only a little less violent than the drop in South Americans has been that in German securities. The credit of Germany has been temporarily shat- tered by the September elections. It is foolish to compare Germany and Brazil. The one always met its commitments and has a will and ca- pacity to pay. The other has been a poor debtor for years and has borrowed against all of its resources. It is well to remember that French dollar bonds, in the crisis of 1925 and 1926, which was more serious than that now facing Germany, also dropped to startling levels of return. In the last four years they have appreciated from 35 to nearly 50_per cent. In view of this week's events it is worth repeating that world politics embarrass the efforts of those who are endeavoring to bring about constructive policies in business and finance and make it more difficult than in other periods of crisis to forecast the future. The early reconvening of parliamentary bodies in Great Britain and in Ger- many, as well as in Prance, will bring to the front measures that may have an important bearing on our own in- vestment and trade conditions. (Copyright, 1930.) SEPTEMBER AUTOMOBILE PRODUCTION REPORTED Based on shipping reports of the Na. tional Automobile Chamber of Com- merce members and reports of non- members, the total September produc- tion for the entire automobile indus- try is estimated at 226,361 cars and : trucks in the United States and Canada. This is a 3 per cent decrease under August, 1930; 47 per cent below the September production of 1929 and 40 per cent below the five-year average for September. First nine months’ pro- duction is estimated at 3,061,983, or a decrease of 37 per cent, under last year and 18 per cent under the five- yéar average for the period. PAYS SECOND EXTRA DURING PRESENT YEAR Special Dispatch to The Star. NEW YORK, October 11.—The As- sociated Telephone & Telegraph €o. directors have declared an extra divi- dend of $1 a share on the $4 Class “A” stock, payable November 1, to stock- hy of record October 17. This is 1l CHICAGO, October 11 (#).—Butter, 7467 tubs, firm; creamery extras, 4, extra firsts, 35a36; b4 :mme entertainment, new es of sight and soung, will surely 4 “seconds, 20830, Eggs, 6,014 cases, steady; prices unchanged. these have been regarded | un the second extra of $1 a share to be declared for 1930, the first having been paid on Augdst 1. It was indicated that this policy of paying $2 extra r year will be carried out iin the ture as earnings it Business News in Retrospect Political Revolts Have Add- ed to Industrial Unrest in Many Sections, With Further Unsetdement of World Markets — Stock- holders Watch for Turn. BY I A. FLEMING. It has been just one thing after an- other, until one wonders if the stock market will be able to stand the next shock that develops. Friday's situation for a time looked decidedly serious, alded by heavy short - selling, which, hcwever, led to a quick fecovery when the bears un- dertook to cover their sales, Fallure of brok- ers has been due entirely to old scores and not to overtrading of re- cent origin; scores that should have been settled a year ago—and there are too many more L A. Fleming, transactions of the leftover variety for the good of the security business. Bankers hold that there is compara- tively little danger from old trades and they also report that some large in- terests are adding very materially to their holdings of high-grade shares. With Europe appareatly settling down to peace and quiet after weeks of “simmering,” with threatening indi- cations, South America has turned from ways of peace and quiet to revo- lutions, ructions and civil war, adding one of the most potent threats to the recovery of confidence. Coming on top of industrial depres- sion, a drought that is proving a most serious matter and that will necessitate much costly feeding of animals all Winter, large unemployment and other depressing influences, the uprisings in razil, Argentina and other South merican states is most unfortunate. It matters little whether one looks at business, big or little, be it investments, building operations, mortgage loans, manufacturing or even retailing, busi- ness is poor to say the least. One does not notice unfavorable con- ditions here in Washington as readily as elsewhere. The Government lives and functions with an army of men and women during good and bad times, the stores have ample support, theaters, movies, base ball, foot ball and other amusements for the outdoors are liber- ally patronized, with comparatively lit- tle unemployment. Authorities report reductions in stocks and a better demand for mer- chandise, especially noted in textiles which have been more or less slow for some time, Shareholders Waiting. Many people are holding securities, shares in corporations, rail and indus- trial, on which they have serious losses, shares that are w&“d for and locked away and that will not have to come out, save for further destruction of confidence. Rumors are dangerous things, rumors without foundation are deplorable and unfortunately can not be controlled. Some One Is Carrying Stocks. The total value of all stocks listed on the New York Stock Exchange as of October 1, this year, is sald to have been $60,143,183,165. During the month a decrease in values of more than seven billions has been reported. Friends of the market hold that the severe shrink- age that has taken place has fully dis- counted all the untoward happenings of the year. Henry Clews & Co., in their weekly market letter, say: “The trouble is not that a good many stocks are not worth what they are now bringing, but is rather, that, due to timidity, uncer- tainty of mind and various other kin- dred factors, there is a dearth of buyy ers in the market.” True, too true, but give the “timids” a couple of weeks of sustained bull markets, let the leaders of Wall Street show a little confidence themselves and the rank and file will get back of the movement toward better prices as a it. ‘What the future will develop will be seen. Stocks may go lower, or they may recover from present levels, but one of these days there will be a reckoning. It may be delayed a long time, or it may come sooner than ex- pected, but the recovery will come, the United States will go ahead and peace and prosperity reign again. Common sense suggests & continual preparation against that time, if one would take advantage of the flood tide, a preparation and an effort to be in a position to even up for the weary months of waiting and paying. Local Bankers Congratulated. At the recent convention of American * Bankers’ Association at Cleveland local delegates were fre- quently congratulated as representa- tives of the District of Columbia or- ganization for the wonderful success that has been attained here in the dis- semination of credit news to the dis- comfort of the questionable borrower. Furthermore, the success of the Dis- trict bankers' conventions has been widely advertised. Many requests have been received by the local association for information on the different meth- ods in vogue in this city and for credit formulas and information as to the conduct of the bureau. HOLLYWOOD, FLA., EDITOR FILES DAMAGE ACTION Two City Commissioners and For- ' mer Police Chief Among Con- spiracy Charge Defendants. the By the Associated Press. MIAMI, Fla, October 11.—Two city commissioners of Hollywood, Fla., and a former police chief of that city were among five defendants named in a $48,- 000 damage action filed in Circuit Court here yesterday by an attorney for O. D. Stiles, publisher of the Hollywood News. The city commissioners named are James M. Breeding and B. L. David, and the former police chief is Clare G. Stout. Other defendants are Alice. White, said to be a former resident of Chicago, and Steven Colder of Holly- Only the praecipe for summons was filed. Thomas M. Lockhart, attorney for Stiles, said the plaintiff would at- tempt to prove a conspiracy against him in connection with the of statutory charges against him in August. L‘::khlfi sald that he would attempt to prove that Stiles had been made the subject of conspiracy because of editorials in his paper regarding al- leged lawlessness in Hollywood. PR More American soda fountain exported p- ment is being this year last, 5 bringing |. POLITICAL FACTORS CONTINUE T0 SWAY FOREIGN BUSINESS Trade Situation in England! and on Continent Un- settled. LONDON INVESTMENT MARKET IS STRONGER {Few Important Industrial Changes Are Noted During the Past Week. Special Dispatch to The Star. NEW YORK, Octob:r 11.—Cable dis- patches to the Business Week give the following survey of business abroad for the week ending October 11: Europe.—Business continues to be uns:ttled. The improvement in German political conditions early in the week, the universelly favorable impression of the Bruening program, and the increas- | ing belief in the political impotency of both extremist partics were reflected in greatly relaxed business uneasiness. Sentiments, as reflected in the stock markets, strengthened perceptibly until the Brazilian revolution and its finan- cial commodity implications arose, along with nervous reaction both on securities and foreign bonds in Wall Street, and the relapse of wheat and unexpected continued unsteadiness of metal prices. Some concern is felt over the political iaspects of recent devclopments in East- ern Europe. Renewed Fascist-Socialist conflicts in Austria and the outcome of the new elections in November, the | resignation of Premier Maniu in Ru- mania which raises the question of the identity and policy of his successor, and finally the prospect of a Pilsudski dicta- torship in Poland have been outstanding subjects of business speculation. Though business seems momentarily to be mark- ing time and deferring commitments, there are indications that long-dammed- up initiative is awaiting only the first favorable opportunity for exertion. Caplital Exodus Continues. ‘The capital exodus from Germany continues but the volume is lower, and British and American credits are re- ported adequate to cover French with- drawals. Quarterly settlements caused no appreciable tightening of money except in transient London, though the year end Is expected to find present lax rates considerably stiffer. The London investment market shows signs of reviv- ing activity, though it is still of the “trial balloon” variety. The week has brought no important industrial changes except for the failure of the steel cartel to reach an accord on the new program regulating production. . The firmer price trends of the early of the week have not been main- tained but wider buying is reported on bulges. Unemployment is rising season- ally but so far is not unusual. Great Britain.—Although it is difficult to find concrete evidence of better busi- ness, a very definite spirit of optimism is reviving, helped, no doubt, by the general feeling of Autumnal activity. There is some slight improvement in the general trend of iron and steel on the London exchange, but reports from Sheffield and other provincial centers are not so cheering. Cotton inquiries are keeping up but there is no actual trade increase. Hide and leather and associated commodities are flatter than 2 week ago, and wool is no better. The metal market is still disturbed. Figures for last week reveal an increase in the unemployed of 6,245, which brings the total to 946,718 more than at this time last year, with cor- responding demands on the dole fund. Declines in France. France.—Gradual business recession continues. Measured in carloadings, it is running 10 per cent behind last year; in iron and steel production, there is a decline in August over July produc- tion, which, in turn, was below June. Industry reports narrowing profit mar- gins. Rising prices and costs and shrinking. volume are causin the squeeze. Indicative of expected further recession is the action of Altsholm, which passed its dividend and placed more than $2,000,000 in reserve, evi- dently to conserve resources against an anticipated lean year. It must be observed, however, tha the Prench business trend is still gov- erned primarily by domestic factors and is little associated with world de- pression, due to the highly self-con- tained character of the national eco- nomic structure. It is now experiencing both a normal change in the business cycle and complications occasioned by the exceptional monetary conditions caused by an excess of gold and capi- tal which is tending to promote price inflation. Two factors cushion against overacute depression: (1) French cau- tlousness against overexpansion in times of prosperity, resulting in an un- usual degree of industrial equilibrium; (2) the presence of 2,000,000 foreign workmen, whose re-emigration would precede the development of any mate- rial unemployment. Germany.—The nation’s political and business situation continues to hold the center of world interest, but despite some nervousness which still prevails, general sentiment is more confident. This reflects particularly the favorable acceptance of the Bruening program at home and abroad. Anything resem- bling a financial panic seems to be a thing of the past. The demand for for- eign bills has subsided, and the out- flow of gold for foreign exchange is considerably below the demand during the first two post-election weeks. More optimistic business sentiment is supported by the improved political outlook, inasmuch as the Socialists have given up the idea of wholesale repeal of the July emergency decrees and are show! a concillatory attitude, | which foreshadows a possible parlia- mentary compromise. —_— EARNINGS HIGHER. ‘The West Virginia Water Service Co,, a subsidiary of Federal Water Service Corporation, reports gross revenues of $846,179 for the year ended August 31, 1930, as compared with $800,133 for the preceding 12 months. Operating expenses, maintenance and taxes, other than Federal income tax, totaled $453,- 105, as against $426,936. Gross income amounted to $392,475, which compares with $373,197 for the year ended Au- gust 31, 9. 1 | e FINE BANK RECORD. Sanger N: Annis, bank commissioner for the State of Maine, has recently re- ferred to the fact that there has been no failure of a Maine bank for more than three years. He favorably com- the extension of ba facilities - through branches to smaller towns and cities of that State with results which ‘beneficial the interght of the were communities F. R. KERMAN, Who was recently elected head of the Financial Advertisers’ Association, the national convention being held in Louis- ville, Ky. He holds an important posi- tion with the Bank of Italy, in San Francisco. Common Stocks Investment List Changes Rapidly Financier Declares Securi- ties Need Much Watching| Every Year—Cites Changes Speclal Dispatch to The Star. NEW YORK, October 11.—The aver- | age life,of a high-grade common stock | investment is between 5 and 10 years. | There must be a gradual flow of stocks | through the strong box as economic conditions change, if deterioration is to be forestalled. These are the observa- tions of Edward B. Twombley, chair- man of Insuranshares Corporation of New York, “Out of 20 common stocks which were high-grade investment isssues in 1900, 16 issues, or 80 per cent of the total, had so deteriorated by 1925 that they could not meet the original requirements by which they were se- lected,” Mr. Twombley states, adding: “Selections were made on the basis of earnings and dividend records, rate of growth, Investment standing, market activity and future prospects, Sweeping Changes Noted. “In tracing the life histories of com- mon stock investments selected at va- rious times between 1900 and 1925 one striking fact stood out. The deteriora~ tion of investment portfolios, even though selected under the most rigid regeu;lrlmen", was progressive. The ol portfolios suffered far more than the newer-ones and the amount of de- terioration showed an impressive direct proportion to the age of the portfolio. Even in the group of 20 stocks selected as of 1925, there were 4 issues which would most certainly the present time. “Changing economic conditions were almost entirely responsible for the de- preciation of the originally high-grade investment, which the investigation re- vealed. These changes could not be originally foréseen, but could be recog- nized when they appeared. A prompt substitution of investments would have lproduud eventual gains instead osses. Factors Causing Declines. “Some of the changes which de- throned prime investments may readily be rec: . The opening of the Pan- ama Canal injured several Western railroads; post-war convulsions in lard and cotfon crippled American cotton oil; the aftermath of the sugar boom broke the dividend record of American Sugar. The automobile and the de- clining potency of the nickel robbed Manhattan Elevated and many other tractions of their prosperity. Chang- ing styles, invention of substitutes and a frenzied cattle market contributed to the decline of Central Leather. The migration of the New England cotton industry to gain the cheap labor and power of the South ruined mills with almost a century of stable earnings be- hind them. The radio and high-priced housing ruined the piano business. A change of public taste from cigars to cigarettes seriously affected several to- bacco stocks. Financial Curiosity, “The first portfolio chosen in our in- vestigation as of 1900 would be a finan- cial curiosity now. It contained no oils, no chemicals, no electric equipments, no chain stores and no motors. Ten railroad issues comprised one-half of the stocks selected. “The portfolio chosen as of 1925 con- tained representatives of all of the in- dustries named above, but reflects sharply the effects of Government reg- ulation on railroad stocks during the intervening years, for it includes but three of these issues.” PLANTING OF WHEAT IS SPEEDED IN WEST New Crop Sowing Reported Un- der Favorable Weather Conditions. Special Dispatch to The Star. KANSAS CITY, October 11.—With moisture and .growing conditions im- proved over the wheat belt this week, the new sowing is getting e start that | j is encouraging to the producers. Planting continues at top speed and seems likely to have two weeks more to g0 in the Western portion. Shomehow there is generally a belief that better E‘flm for grains are in store and the olders of wheat are in no hurry to send their supply to market. Perhaps, too, there is a relaxation from the tense- ness that affected the whole interior during the heat of a droughty Summer. Acceptance of conditions and less dis- position to complain are noticeable. After all, there are more units in the! production record of every principal crop except corn than a year ago for most of this area. When marketing conditions mme much of the anxiety :Lta“w“ months will be for- 8 Here and'there are reports of what merchants like to call a “buyers’ strike.” to_customers who, wif not be selected at | than ith | wages. It's almost lusions from EARNINGS DECLINE KEEPS PACE WITH COMMODITIES DROP Statistics Show Cost of Liv- ing Has Decreased as Wages Dwindle. UP-TO-DATE FIGURES ON EMPLOYMENT LACKING New York State Records Give Fair Indication of Conditions There. BY JOHN F. SINCLAIR. Speclal Dispatch to The Star, NEW YORK, October 11.—Are work- ing employes better off now than they were a year ago? It's doubtful, despite the drop from 94.4 in October, 1929, to 823 in October, 1930, shown in the Irving Fisher Commodity Price Index. The United States Department of Labor issues a report, showing the average per capita earnings of American workers. These are secured by dividing the index of the pay roll totals by the index of employment. Prom August, 1929, to August, 1930, the department reports a drop of 10.6 per cent in the per capita earnings. It also shows a drop of 10 per cent in retail prices and 14 per cent in wholesale prices. The Labor Bureau of New York uses the same methods of figuring and has reached approximately the same con- clusions. It figured a 10 per cent drop in the average per capita earnings in the same period, but offered no figures on the subject of commodity prices. Government Figures. Other figures, watched by students of this question, are those issued by the Depm‘ tment of u::; siving the aver- age full-time wor employes in o} - ating establishments. Thase = figures cover some 10,000 _establishments in the United States. In August, 1928, 98 per cent of the employes in these estab- lishments were enjoying full-time labor. The finding for August of this year i 91 per cent. This percentage, however, is not as accurate as the figures dealing with the average per capita earnings, be- cause the same 10,000 establishments were not used in both cases. This, of course, makes this particular find- ing interesting but inconclusive. Wages and Living Costs. One often hears the comment that wages and salaries have ped dur- ing the last year, but that the cost of living, as s in commodity prices, more than makes up for the drop, and, therefore, those who are employed are better off now ever. In a word, that ti:: gfilu ll purchase more now & year ago. The res referred to above show that whllg‘:m- ployed labor ht;:od;f"f off than it Was a year ago, the pping price level has just about kept up wilhpw-‘e re- a;xcuon. plus the part-time labor fac- T An analysis of the declines recorded in such basic commodities as wheat, o flour, beef, pork, coffee and refined sugar at primary markets, as compared with the average decline in retail food prices, shows that while these com- modities declined anywhere from 19 per cent in sugar to 47 per cent in coffee, Bradstreet's Retall Food Index for the week which ended October 4, 1930, shows a decline of only 1625 per cent as compared with a year ago. A checking of these six food items shows an average decrease of 25 per cent in retail prices. xlab retail food prices with other commodities included declined, on the general average, 1624 per cent during the last year. These figures seem to indicate, likewise, that even if wage scales had been main- tained at the level of one year ago, and no unemployment existed, the wage earner’s dollar would have increased only 1635 per cent in purchasing power, in spite of a 25 per cent drop in mar- ket prices of wheat, flour, beef, pork, coffee and sugar—six of the most im- portant food items in modern Hfe. Estimates on Unemployment. Many conservative economists esti- mate that the number of unemployed in the United States today is at least 3,000,000, with several more millions working two to four days a week. Some industries today are taking on men— the radio industry, for example. Many of the country’s largest corporations have announced that they have not re- duced wages. But this depends on what is meant. The rate per hour, ar the amount per day, may not be reduced, but the total working hours of labor in most industries has been reduced. This is what causes reduced purchas- ing_power. It's a well known fact that some of these industries are working their staffs on a part-time , and this, of course, naturally reduces the total wages paid during that period. ‘The figures quoted are not conclu- sive for the whole country, but they in- dicate a very decided drop in wage- earners' income through unemploy- ment and through part-time work, From all the information available, I should assume that the total salary and wage decreases in the United States are from 20 to 30 per cent under those existing_one year ago. Thus the drop of 162-3 per cent in retail food prices is not very comforting to men and women out of work or to those who are working three days a week and suffer- ing thereby a loss of 100 to 50 per cent income. New York Figures. ‘The figures in New York State, thanks largely to the efficiency of Miss Frances Perkins, industrial commission- er, are as complete as the figures of any State. The increase of about 2 per cent in factory employment in New York from the middle of August to the mid- dle of September is the first gain re- rted since October of last year. It was in the field of women’s headwear and women's clothing firms that the largest gain was reported. "These results are based on figures from about 1,700 fac- tories which report -egularly to the New York State Department of Labor. But any one who has had the pa- tience to read thus far in this lfl-fi:‘h that the most need today is comprehensive up-to-date labor statistics dealing with employment and impossi] to draw conc] the present half- baked data which are availabl 15| (Copyrisht, 1030, by North American News. -mmunmm-mmm% paper Alliance. EMPLOYES INSURED, Employes of the King Edward Hotel approxi- & of Toronto are provided with mately $383,000 in combination with