Evening Star Newspaper, October 26, 1930, Page 69

News of Markets Pages 1 to 4 Part 6—14 Pages SIDDONS IS NAMED CHAIRMAN FOR D. €. BANKERS' MEETING Appointee Has Been Active in Affairs of Association. Record Given. {TRADING ON EXCHANGE IN MODERATE VOLUME | aptial Traction Stock Continues to Feature Market, Closing at 50 1-4. BY EDWARD C. STONE. President Lanier P. McLachlen of the District Bankers' Association yes- | terday announced the appointment of Frederick P. H Siddons, secretary of | the American Security & Trust Co., as chairman of the General Convention | Committee for the 1931 annual con- clave. The convention takes place in June, but it has become customary to make this appointment far ahead of the event in order to give ample t.Lmz' for the extensive preparations. The four-day sessions make up the most important gathering of local bankers held during the year. Mr. Siddons, the newly named chair- man, has already done a great deal of work for the association and is one of the most active of the younger bankers in Wuhlngtmm He was born on No- ‘vember 8, 1895, in this city and is the son of Justice Prederick P. Siddons. After attending the public schools he | graduated from Western High School in 1913, later going West to the Univer- sity of Wisconsin, receiving his A B. degree in 1920. ~After entering the banking flield Mr. Siddons decided he wanted a knowledge of law and at- tended National University Law School, {mn which he received his degree in 923. . When the World War came on Mr. Biddons entered the Field Artillery, serving in this branch of the service from June 1, 1917, to September, 1919, being & second lieutenant at the time of his discharge. He entered the em: ploy of the American Security & Trust Co. on March 24, 1920. Two years later he was selected manager of the new business department, elected assistant secretary in January, 1924, and secre- tary in January, 1926. His service on standing committees of the District Bankers’ Association in- cludes a year's chairmanship of the Committee on Commercial Trade Ac- tivities, chairman Committee on Insur- ance, first chairman fiduciaries section snd present chairmanship of the Pro- tective Committee. He has also served n.:u & member of many other commit- "Much Other Service Rendered. In connection with previous conven- Mr. Siddons has also rendered He was vice chair- | the same committee in 1928, chairman of the Publicity Committee for two years, as well as being a member of several other committees. ‘Trade, University Club. Columbia Historical Society, legal fraternity of Sigma Nu Phi and the Zeta Psi Fraternity. Following the custom which has pre- vailed for several years, Mr. Siddons will be elected secretary of the District Bankers’ Association at the next con- vention. That is the first rung of the Jadder which leads to the presidency. It takes four years to climb it, as the secretary becomes second vice president, first vice president and then head of the association. Last year's convention was held at _@rove Park Inn, Asheville, N. C. The ¥two previous conventions had been held at Montauk Point, Long Island. Four ears ago the convention was held at Lot Springs, Va. The place of holding the next convention will no doubt be settled in the near future by the coun- il of administration in order that the dates may be reserved for proper hotel accommodations. D. C. Stock Exchange Trading. Trading on the Washington Stock Exchange yesterday was in moderate volume and confined to a limited num- ber of issues. The most important transactions of the day took place in Capital Traction stock, which closed the week at 501, the same as Friday’s closing quotation. The day’s sales in this issue reached 105 shares. ‘Washington Railway & Electric pre- ferred, both the Potomac Electric Power preferred issues, National Mort- & Investment preferred and Real g{:u Mortgage & Investment pre- ferred recorded sales during the session. The only bank stock out was National Bank of Washington, and bond trading ‘was confined to two issues. The shares traded in and the prices follow: Barber & Ross 61;5—$1,000 at 87. Capital Traction Co.—10 at 5 20 Ve, 10 at 50Y, 10 at 50% 80’4, 5 at 50%, 20 at 50%, 10 Potomac Electric 6% pfd.—5 at P;rwmn Electric .5 % pfd. 108%. National Bank of Washington—10 at 45. 2 Sational Mtge. & Inv. pfd.—40 at 5. Real Estate Mtge. & Inv. pfd.—50 at ®4vashington Rwy. & Elec. ptd.—10 at 98%. Potomac Electric 6s, 1953—8$100 at 105. Calls Pessimism Unwarranted. The present depression, in the opin- fon of Melvin A. Traylor of Chicago, former president of the American Bank- | ers’ Association, who has many friends among Washington bankers, is only a repetition of what has happened be- fore, following abnormal boom periods. ‘As has siways taken place, there will be & recovery from the present period, once sufficient’ thought, transiated into ac- | tion, is accorded the problem, he says. “What is most needed is normal con- duct business leaders,” he stated. “An ted period has followed abnor- mal conduct, mostly in buying beyond present needs and pocketbooks, and the situation must be deflated. I do not think this on wholly accom- lished. » Rf‘ the height of the boom our pey- ehology was all wrong, but today's pes- simism is as unwarranted as undue op- FINANCIAL AND CLASSIFIED Ghe Sunday Star WASHINGTON, D C, SUNDAY MORNING, OCTOBER 26, 1930. Classified Ads Pages S to 12 FREDERICK P. H. SIDDONS, Appointed by President McLachlen of the District Bankers’ Association as chairman of the General Committee to arrange the next annual convention. Mr. Siddons has already rendered con- spicuous service to the local orgam- zation. —Harris & Ewing Photo. Factors in Trade Upturn Shown by Check of Industry Pay Rolls, Cloth Sales, | Bank Loans and Build- | ing Indicate Progress. Special Dispatch to The Star. NEW YORK, October 25.—While general business is unmistakably on the | road to recovery, progress so far has been feeble and spotty, furnishing testi- mony to the probability that the vol-; ume of business will not reach satisfac- the earliest, says the Alexander Hamil- ton Institute. It should be considered encouraging, however, that the worst of the depression is now over and that the present tendency is upward. pessimism which has been so prevalent lately is entirely unwarranted, | and statements to the effect that the| prosperity of the past will never return and that the country is facing a re- duced standard of living are ebsurd. Prosperity depends upon production, | and the means to produce are as great; now as in 1929. | ‘The United States still has machin- ery, abundant natural resources and an energetic, capable and intelligent peo-| ple. Given these fundamentals, nothing can stop over the long-term trend in- creasing production, greater prosperity, a higher standard of living. A period of depression 1s not a sign of degenera- tion, but a sign of progress. It is merely the result of zealousness overdone, & characteristic which is the root of progress. Out of all the depressions | which have occurred in the past, a greater prosperity has eventually sprung. Evidences of Upturn. Evidence that business has already made some upward progress is fur- nished by the following facts: 1. Manufacturing activity, as meas- ured by factory consumption of elec- tricity, has been on the increase since July. The September index was 110.7, Julm" 105.3 in August and 105.1 in uly. 2. The total amount of wages paid to factory employes was larger in Septem- ber than in August. 3. In September 24 industries re- ported an increase in employment over ugust. 4. The index of machine tool orders was 1359 in September, as compared with 113.8 in August and 91.1 in July. 5. Bales of cotton cloth have been steadily increasing since June. Average | weekly sales in September amounted to | 72,000,000 yards, as compared with 47.- 000,000 in August, 45,000,000 in July and 32,000,000 in June. 6. Residential building is showing in- creased activity. Contracts awarded in September totaled $99,000,000, as against $83,000,000 in August. Preliminary re- ports indicate a further increase in Oc- | ber. 7. Bituminous coal mining has been on the increase since June. Production in September totaled 28,580,000 tons, as against 35,661,000 tons in August. More Power Being Used. 8. The output of electricity for the | week ended October 18 totaled 1,%710,- | 000,000 kilowatt hours, as compared with the 1930 low of 1,565,000,000 kilo- watt hours for the week ended July 12. 9. Forelgn trade is showing expan- sion. Exports in September amounted to $318,000,000, as against $298,000,000 in August and $267,000,000 in July. Im- ports in September showed an increase over August. 10. Commercial loans have been on the increase since the end of Septem- ber. For the week ended October 15 loans of reporting member banks amounted to $8,606,000,000, as against $8,453,000,000 for the week ended Sep- tember 24. 11. Wholesale commodity prices, on the average, have shown ljttle change since July, indicating that the bottom ! has been reached. 'WOOLLEN NA'MES FOLLIES BEARING ON BANKING Evans Woollen, president Flatcher Savings & Trust Co. of Indianapolis, mentions the following seven follies which have bearing on the present business situation: acted as if the rate of business activity in the early part of 1929 could be con- tinued indefinitely. “2. The folly of regarding the de- pression as caused by the stock market crash, which came four months after the depression had started inexorably | depression was only ‘psychological’ and could be shooed away by big talk. “4. The folly of the provincial view that ‘we have nothing to do with abroad’ that business here can get well while business abroad is sick, and that we can shut out imports without impairing the markets abroad which are essential for our surplus products. “5. The folly of mortgaging future income for luxuries and of thinking that business can be permanently stimulated by a practice which antici- pates, but does not enlarge purchasing power. “6. The folly of expanding business ism of 1928 and 1929 u.f'll do not think we can profitably set wp artificlal methods to help. Unrea- sonable anticipation of future needs would only create & vacuum when time came for those needs normally to be flllgldA “I a) Wfln and don’t want be ; to ‘:hmmflhm'lfld und to return.” by advertising and salesmanship that absarb all the profits “7. The folly of not now organizing each his own affairs to meet conditions as they are, instead of relying on pre- dictions that activity like that of early 1929 is around the corner. Tolbehmf:.‘ predictions may ol true—if they do, so mi the better— but again may not. tory proportions before next Spring, at 1l | producer—Katanga. | shows that it recovered last year 123.03 | “3. The folly of thinking that the TARIFF ON COPPER IS HELD NECESSARY 10 SAVE INDUSTRY Statistics Show American Producers Cannot Compete With Foreign Interests. WAGE SCALE AFFECTED BY CUT IN METAL PRICE Trade Expert Cites Figures to Show Plight of United States Producers. BY JOHN F. SINCLAIR. Special Dispatch to The Star. NEW YORK, October 25.—"Why do copper prices continue to sag? Think of 9 cents a pound for copper, the low- est since 1894! It's all a mystery to me. I give up,” said & copper man re- cently. The statement was puzzling. Here was & man who had been active in this metal all his life, and he admitted he didn't know what was the trouble with it today. Here are the facts: The world, out- side of the United States, produced 2.- 155,525,000 pounds of copper in 1929 and consumed 1,969,000,000 pounds. This left a surplus foreign production for the year of 186,525,000 pounds. ‘The United States, on the other hand, produced 2,052,696,000 pounds of cop- per during the same year and consumed 2,238,000,000 pounds. In a word, the United States consumed 185,304,000 pounds more than it produced. The world production was closely balanced between production and consumption. Copper Statistics. But let'’s look a liftle closer into the figures. If we take the 1930 world pro- duction capacities and compare them with the 1920 consumption we find Production South America. Europe Japan an Others Total foreign. Consumption 1929, d Austraissia.. Excess_foreign. United States. . Consumption 1 Excess U. 8.. Foreign _exc U. 8. Exces: Total excess. Armstrong’s Speech. I asked Frank G. Armstrong, New [New President of Associa- tion Has Long Career in Finance. tee Member in Building Up Membership. Henry T. Ferriss of St. Louis, who has just been elected president of the Investment Bankers' Association of America, is held in high esteem by local members of the organization. He has earned the honor through long service to the association and excep- tional financial ability. Mr. Ferrls was born in St. Louls, Mo., in 1882. He was graduated from Cornell University in 1902 with a B. A. degree and from the Washington University Law School in 1905. His many years judge of the Circuit Court of the City of St. Louis and also of the Supreme Court of Missouri. Mr. Fer- riss practiced law from 1905 until 1915 when he became vice president and counsel of the Mortgage Trust Co., St. Louis. In 1920 this company was pur- chased by the First National Bank in St. Louls and shortly thereafter its name was changed to the First National Co. Mr. Ferriss then became execu- tive vice president of the First National Co.. which position he still holds. Mr. Ferris has been active in the work Trade Trend Waits Upon Relief of U BY RUDOLPH SPRECKELS, ditions may be showing signs of im- provement here and there, the United States cannot expect a return of real prosperity until the present state of unemployment overcome. Once a means is devised to remedy this situation the country will be able to see clearer business skies. Municipal, State and national agencies, as well as private groups, are now working York copper leader, whose recent speech | before the American Academy of Po- | litical and ‘Boclal Science on the cop- per industry ‘made a profound impres. sion throughout the country, for his | estimate of the world’s copper cutlook during the next 10 years. | “With annual production capacities ' now of nearly 5,000,000,000 pounds and | consumption surely not over 3,600,000, 000 pounds for 1930, and figuring a continued increase of copper consump- tion at the rate of 6 per cent per year from 1930, we must come to the in- evitable conclusion that the present known production capacities, plus stocks | on hand at October 1 of this year, ap- pear sufficlent to supply even this greatly increased estimated co - tion for the next 10 years,” sald Mr. Armstrong. “New production rapidly equipping and developing in Africa and elsewhere will further extend the time in which consumption can be expetted to overtake production. 4 “From thsee figures, you see that the United States can produce and consume about half of the copper of the world | now,” continued this copper man. “But it has reached a ciisis. I think we ought to face the fa No purely American copper company can gompete in an unrestricted free trade market with the present and rapidly deyeloping cheap foreign coppers. Not only is the labor element too big a factor, but the high-grade ore of foreign coppers adds to_the difficulties. For example, let us take one typical American copper property—the Nevada | Consolidated—and compare its produc- | tion record with that of the big A:rican Katanga's record | pounds of copper from each ton of ore | mined and treated, while the Nevada | Consolidated—one of the finest, largest and most capably operated of Amer- ican properties—recovered but 20.66 pounds of copper from each ton of ore—a tremendous difference! Cheap Foreign Production. “But why are foreign companies able o produce copper cheaper than Amer- | ican companies “I have given you part of the an- swer—the richness of the ore. But the other, and a great, factor is the cheap | labor used in producing the copper from foreign mines. Let us refer to Katanga once more, the large African copper mine. According to the latest reporis, wages paid to unskilled laborers by this company varied from $1.46 to $7.29 a month, Tations being provided (which amounts to 18% cents a day), while semi-skilled workers received 312.15 a month. “Or take the mines of Chile. The official figures show an average, in American money, of $1.08 a day. Com- pare that with American labor getting | from $4 w0 $7 a day for the same work.” Onc of the difficulties involved in the present copper situation is the fact thut | | porations—the Anaconda and the Ken- necott—both are largely interested in foreign copper. The figures show that ican copper production 'is decreasing, | that in other parts of the world it is { increasing. |, "I do not believe the statement that | foreign copper can be laid down in New York City at anywhere from 5 to 9 cents a pound can b: contradicted,” continued Mr. Armstrong. “Such ‘a condition absolutely demoralizes the | copper mines of the United States, and | American workmen are forced out of work by such a procedure. Had the | United States Steel Corporation pursued | A policy of competing with itself, seek- | Ing out foreign countries where iron | and steel could be produced more | cheaply than in the United States, and supplying the products therefrom to the world markets, including the United States, duty free, it, too, would find itself in the same predicament that the international copper interests are in | today.” Urges Tariff on Copper. the two largest American copper cor- | on plans to take up the slack in unemployment and hasten the return to better times. U n questionably such efforts will help matters for the time being, at least. Bullding projects, for which the public money has been appropriated, will be carried through on & big scale. This means employment for many idle persons. As an emer- gency measure it will only help so far as the appropriations run. The money must be spent some time, and there could be no better period than right now. But the Government might very well g0 & step beyond this. It is recognized that the United States now is in a real emergency period. No man can say lolph Spreckels it will be a year or more before it is out of the woods. As an emergency measure it might be sound policy for the Government to make no effort to reduce the national debt over the next three or five years. Increase in Buying Needed. Such action would result in a re- duction in taxes all along the line. It would be a relief to many businesses that have been sorely pressed and ma: still have difficulties to overcome. encourage business to go ahead with plans for expansion. It would make for a more cheery outlook on the future. ~ The employment _situation would improve, sales of materials would rise, car loadings would increase and recovery in most industries would ollow. Only the ability and the Inclination to spend more, on the part of the public will again permit manufacturers to in crease production and employ more quite as favorably as business.to any policy that reduced taxes through the suspension of payments curtailing the national debt until such time as it is thought the present emergency no long- er_exists. Further reduction in taxes could be obtained by a change in the drastic prohibition’ laws. The Government could raise a billion dollars a year through an internal revenue tax on alcoholic beverages, were they legal. As it is the Government is spending vast sums for the attempted enforcement of laws that experience has convinced all, save the most rabid, cannot be enforced. There is liquor to be obtained in every section of the United States by those who wish to drink. As matters stand, the Government, instead of collecting taxes on this consumption, is actually paying out millions in a futile effort to | Only the bootleggers are prospering through this state of affairs, and they and the ever increasing lawless bands of racketeers corrupt, bribe and under- mine respect for government. The farm problem, next to that of | anything more than a temporary re- “1. The folly of having thought and | during the present year, while Amer- | covery in business. Many prescriptions have been written for the farmer and tried out on him. Some patients may have survived, but they can hardly be rated as good insurance risks at this time. Suggestions for Farmers. The farmer produces too much, doesn't diversify his crops enough, and is inclined to overwork his land. If all farmers would limit their crops, permit a certain amount of their land to lie | fallow. and go in for diversification in the foodstuffs they raise, hard times and the agriculturists would be compar- ative strangers. Germany has such a plan. The law there limits the various crops and the amount of land to be tilled, and govern- ment agencles specity what foodstufls are to be raised in the different sec- tions. _Of course, the United States extent they are? It constitutes, in my “‘Then what do you est as & way out of the present diffculties?” I asked im. “Instead of allowing fore! lén:er the Un‘lle‘: States duty uty suffielent to_keep f SOpRET S b 3B S copper be ted t, wi iron and steel, and aluminum—in fact, copper to ree, & opinion, & glaring example of the power and atory methods of those who control our tariff policies. There's not a single argument in support of any reason for a duty om any which does not apply with equal force to capper.” (opyrignt. 1030, by Ncfin ;‘m‘flcln News l |Has Been Active as Commit- father, Han. Franklin Ferris, was foiv ‘While the unfavorable business con- | %1 with any degree of accuracy whether | It | would increase public buying power and | labor. The general public would react | | prevent the sale of forbidden drinks. | unemployment, demands solution before | | the United States can get started on | all other metals—are protected to the | ‘metal | firm FERRISS, INVESTMENT BANKERS' HEAD. IS WELL KNOWN HERE HENRY T. FERRISS. of the Investment Bankers' Association of America, having served for four years on its Real Estate Securities Committee, one year on its Industrial Securities Committee, two years as chairman of its Membership Committee and two years as chairman of its Municipal Se- curities Committee. In 1926 he was elected a governor of the association, for a three-year term, and in 1929, a vice president. In 1908 Mr. Ferriss married Miss Edith Platt of Lake Forest, Ill. They have four children. and Outlook Leader of Sugar Industry Believes Better Business nemployment—Suggests Reduction in Taxes as Remedy. couldn’t hope to pass such a law. But practically the same result could be achieved by appropriating money to be lent to farmer: the Government |8t so much per acre on crop mort- | Bages. making as a condition for loans | crop limitation and diversification. The | United States Department of Agricul- ture has officials in every county, it has the farms of the Nation platted, it knows from its records of soil analysis |and climatic conditions what can best be produced in any given are: It is in a position to utilize this knowledge, in the making of loan con- ditions, to ald the farmer in solving his own problems and in so doing to | help the business and industry of the country at large. Experience shows that |the only time the farmer gets good | prices 1s when the demand is equal to | the supply. If the price of one product is good one year it invariably follows that farmers increase the planting of |that crop the next year, and the | bottom drops out of the market as a consequence. Crop Diversification. | _‘The farmers have no way of know- ing what others are planting, con- | sequently overproduction of one or | more products generally results in | glutting the market. Diversification of | crops under some directing agency would help solve the farmers’ problem. Government money lent to them, | under the terms I have set forth, would | stabilize production and put agricul- ture on a sound basis. Such loans on crop mortgages would become a revolv- |ing fund and require no further taxes |in ald of agriculture. | " Although the farmer's plight has | been serious, and still is, the retail food industry has held up well during the period of depression. People must eat | whether times are good or bad. They {can do without the luxuries, and even certain necessities, but they must have Wholesale food prices as & group in September were some 13 per cent under the corresponding month last year, al- though they were 3 per cent over the average price for August, according to available Government reports. Chain store sales in foodstuffs, according to reports, showed only a very slight drop in September from the previous month. FOREIGN ECONOMIC DEPRESSION SHOWS SIGNS OF CLEARING Bruening Victory Dispels | Fear of a Debacle in Ger- man Finance. FRENCH MAY AUTHORIZE DISTRIBUTION OF GOLD| Bankers Inclined to Believe Young Plan Revision 1Is Necessary. Special Dispatch to The Star. NEW YORK, October 25.—Cable dis- patches to The Business Week give the following survey of business ab; for the week ending October 25: Europe.—Rarely has one week brought a more rapid clearing of real or im- aginary economic or political storm- clouds. ‘The parliamentary victory of the German government, though by no means considered final, at least has dispelled immediate anxiety, while the conclusion of the successful ratifica- tion of the international credit and the unexpected decision of the coal syndicate to join the price-wage reduc- tion movement have been favorably noted. Where French obstructionism was feared one week ago, it is now ru- mored that the government is formu- lating a program of measures to un- block French capital congestion and promote a much needed redistribution of both capital and gold. Improvement in Germany. Meanwhile the peseta has staged a sharp recovery as Spanish authorities take steps to stabilize currency and probably to resume the gold standard. vement, and the an- t Brazil will meet the on foreign loans, ied to exhaust itself, has rallied sagging bond markets, while stock exchanges, which already had been rupol::xn‘ to general improve- ment in the situation, ad- vanced further on better Wall Street advices. Metal and grain prices have :ecavend appreciably from the recent lows. improved on better Indian market ad- vices, while imposing oversubscriptions for recent British gilt edged issu stimulated the expectation of greater investment activity. Abnormal ex. change and gold movements have prac tically ceased. but this may not mean anything, for there are no figures available for all | the grocery stores in_the country. | Generally speaking I should say that | there has been little reduction in the | food store business. | While those in the United States have | been having their difficulties, the peo- | ples n some other lands have suffered | | much more from the general depression. | The United States has built up tariff walls, and in doing so has laid itself open to reprisals from foreign nations. Some manufacturers, to beat the game, | are opening plants in other countries. Plea for Constructive Plan. By this policy they are decreasing the export business and the outlets for the | production of their factories in the | United States. Their production in the | United States will of necessity go down, | and their overhead, charged against less production, will increase the cost of articles_produced. The United States has been facing & serjous situation, and will continue to be confronted by it until constructive means are found to remedy matters | The country ‘might as well look the | facts in the face and strive to deal with | the problem Intelligently and thor- oughly. T am not pessimistic regarding the future. The United States has weath- ered successfully other periods of de- oression. It will do so again. But the country needs to develop courageous leadership and s progressive and intel- ligent program in which busin<ss, labor ard the Government will co-operate to get. the best results in the shortest time. (Copyright. 19%0. by North American News- paper Alliance.) _ NEW YORK, October 25 (#).—Clos- 1ing bid and asked prices on stocks of | leading New York national banks and trust companies follow: NATIONAL BANKS. Bank of Ame b Chase Natioj Chatham & First National Manbattar, Co TRUST COMPANIES o 7 114 D0 ~14150 941 rica. . 1 na Phenix. . Bankers ... Gentral Hanover Corn Exchange. Chemical | Guaranty Trving . | Manufactu; New York. | NEW YORK, October 25 (#).—Stocks | toward restoration of public confidence | | lieved overnervous business and caused irregular; week end realizing checks ad- vance. Bobnds lar; domestics move quietly; Brasilian strong. Curb : profit taking easily absorbed. lar; _ster] cables Sugar holiday. The disposition to consider seriously and not unfavorably the German con- tention necessary. Bt:?ker:fl! 1 inclined to be- ately at the proposal are inc! - lieve it is not only justifiable but eco- nomically advisable. It is the con- sensus of fon this week, even in Germany, that it is highely desirable to avold & moratorium because of the unfavorable effect it would have on in- ternational credit. Eventual revision may become an effort to bring about a co-ordinated scaling down of war debts on the plea of economic revival. This is dependent on the attitude of the United States. Small hopes are en- tertained that Congress will even con- ud’er the proposal under present con- ditions. Agrarian Conference. ‘The second agrarian conference at Bucharest has struck seemingly Insu mountable snags due to the mixed agra- rian and industrial nature of the coun- tries involved. Tangible work likely to produce some effect is expected to come from the Politico-Economic Committee appointed to carry out what at Warsaw was termed agricultural rationaliization, but which the new conference terms a correlation of production and trade. Europe is surprised but not greatly perturbed over the move by the Soviets to discriminate against purchases in France, Rumania and Hungary. Pur- chases in Rumania and Hungary have always been negligible, but orders from France have risen to more than 27.000,- 000 a year, are of considerable impor- ance to the French non-ferrous metal ustry. The Russian decree encour- | ages non-utilization of vessels, ports, railways and commercial facilities of the three countries. Great Britain—Business remains de- pressed. The coal industry is running into increasing difficulty in finding mar- ket demands to equal production. Iron and steel, jute and hides are flat. There is some 1mprovem:m in th]e bn.l':mlnd H for cotton goods and raw wool. none for mlnufM.‘):ure;i wool. The leather trade is brightening. ‘The Imj o al Conference has already thrown all British political parties into a new state of chaos. The Torles will go to the ballot favoring national econ- omy, an emergency tariff on manufac- tures, a wheat quota system at a guar- anteed price, anti-dumping measures against foreign fruits and vegetables,' and further imperial preferences. As well defined as the program is, the party has not unanimously accepted it. France.—Slowing inclining activity evident since June, is expected to con- tinue well into the next year, independ- ent of world conditions. The decline is still relative, for unquestionably France is the most prosperous country in_continental Europe. The grain crop failure is now offi-| cially confirmed. ~Wheat production this year will total only 6,300,000 tons, compared with last year's official record of 8,700,000 tons, which, according to private count, ran to 9,500,000 tons. Prices and living costs continue to rise, notwithstanding the further decline in wholesale values as incoming ship: ments of gold continue to pile up capi- tal without proper outflow into industry. The weight of taxation is likely to be- come & major issue before the present phase of the business cycle is com- pleted. Germany.—The parliamentary victory of Ghancellor Bruening, though no defi- nite solution to the political crisis, is an important milestone in the path, and financial stabilization. Last week’s political developments re- an all-round favorable reaction on finance and trade. The panicky demand for foreign bills has subsided; exchan rates have returned to normal levels. ‘The Reichsbank statement for October 15 still shows a loss of gold totaling 60,000,000 duri the previous week, but an increase of 9,000,000 in foreign ex- change holdings, which indicates that the bank's conversion of gold into for- eign bills and checks is now ahead of the receding demand for foreign cur- rency. Cotton_prospects are considered | R. HOLTBY MYERS, Newly elected president of the United States Bullding and Loan League, of Los Angeles, will be in this city Wednesday night to address the District of Colu bia Council of Building and Loan Asso- ciations. My Myers is a member of the road | Hoover committee appointed two months ago to study ways and mens of en- couraging home ownership. His marked resemblance to Thomas A. Edison has caused much comment. Business News in Retrospect The Present Situation in ‘Wall Street Is Apparently Without Parallel in the History of the Stock Market. BY L A. FLEMING. “There 15 no balm in Gilead,” mnof| e | in the New York Stock Market—to the weary waiters and watchers who for over a year have looked and longed for the reaction that they had been taught to expect followed every drastic movement, the this contingent, Tepresenting Vnat unfortunate group who owned their investments, specu- lative and other- wise, outright, and who naturally re- fused to e & big l?ss. tpwr!e!{errmg to sit an T A Fleming. - 3od their stocks for the reaction, have been disap- pointed. And in that year there have been but few crumbs of comfort, while margin traders, wiped out in the holo- caust, were put out at prices many points higher than present low levels and, being out of the market entirely, gradually ceased to worry about it and turned attention elsewhere. Just another evidence of the truth of the adage that independent cash buyer will frequently overstay his market in his independent confidence of a recovery. And the worst of it is that there is scarcely a readiable sign on the horizon 'blodldy to indicate taht the end is at and. We read much in the preis conecrn- ing the current low prices of com- modities but fail to find that the lower figures have been passed on to the retail trade. ‘There is in the situation existent today nothing that Wall Street has met before. For once, money is not the slightest factor in the prevailing condition, notwithstanding the fact that some reputed doctors have ad- vanced jous financial remedies to better conditions. Credit is not a scarce commodity where the applicant is entitled to con- sideration. kers are exercising sim- ple caution, safeguarding their interests and rates are exceptionally low to the high-grade borrower. Credit_must be given to the Federal Reserve Board for having stabilized our monetary system to the point of confi- dence, and changes made in the existing laws governing the system should be made only after due deliberation and by friends of the system. Senator Glass, chairman of a special financial committee, has stated that his committee would start an investigation of men and women | RECOVERY IN STOCK MARKET IS LAID T0 SPECULATIVE URGE Extent of Long Decline Has Improved Technical Con- dition of List. SENTIMENT IS IMPROVED BY GAIN IN COMMODITIES Statements of Business Leaders Help to Restore Public Confidence. BY CHARLES F. SPEARE. Special Dispatch to The Star. MVNI‘;W“"YHO‘RK, Oc'obewr ls.l—!pecu.ll- e ict prompt people to bu; stocks this week when the action oz the market gave as little assurance of its stability as at any time this year and in spite of the depressed state of in- dustrial and railroad affairs. Their Intuition may have been correct or it may later be found to have been T Bertan It o that demand for secur- ities has increased not only where it reflects professional commitments but as it has developed among those who have withheld their support for months and are now, with discrimination, in- vesting t,hekmelpl&: in de:oux\d equities. ly, per currents that have been flowing in the market have ben more ant than those on its surface. Casl ‘hases have been | st since last November. The technical strength of the stock list hes | been proved by its resistance to severa) severe tests du the week, such as oll and steel, wretched exhlb‘l:lhvol corporation el‘r“llg ings in the September quarter have been received. Extent of Price Deecline. There are several reasonable explana- | tions for this change in aentlme:,t,. The first is the extent and duration of the decline. On Wednesday the Standard Statistics weighted average of 404 | stocks was exactly on a par with the averege of high and low prices in 1927. Taking a shorter period of reckoning, we find that on the same day the Wall | Street Journal average of industri | sharss was down 60 points from the | September 10 level, while railroad and public utility shares were from 20 to 22 points off in six weeks. Although the September-October de- cline was not so expensive as that in May-June, it from a consider- ably lower average and continued over 2 longer term and so was more de- structive of confidence. At the begin- ning of this week nearly 65 per cent of more than 1,000 issues listed on the New York Stock Exchange were at thc | lowest prices of tHe year. | In earlier stock market declines the downward movement has terminated at | the end of 13 months. In others it has | run for 21 months. The accepted high | average of the 1929 market was that of | September 3. So the slump this year | has already overrun by several weeks that of other similar perfods. How- ever, many students have claimed that we were in a bear market between Feb- high-priced industrial and public utilities were reaching their tops in the Summer, scores of others had dropping for eight months. The extent and duration of the de- cline, therefore, give basis for consid= eration of the stronger technical posi- tion of the market. On what may be called its sentimental side it has gained flg; mnn%h vield enever the average on com- mon stocks rises above that on high- grade bonds, there will be increased buying of stocks, independent of con- ditions surrounding business or the stock market. Just now the yleld on stocks is a] one-half of 1 per cent greater than on bonds. It is not so high as in 1921, for prices are not 50 low as then nor should they be. An estimate was made recently that in the depression of a decade ago American corporstions paid dividends that were not fully earned amounting to less than one-third the total that will be distributed this year and has been earned. While e:g 't metal has declined to a point fch'“precludes a profit to any but the low éost producers, cot- m s:: rallied 43 a bale and wheat early in November covering the mone- tary systems. In the meantime consumption is steadily going on. Even the great army of the unemployed, men and women, must be fed, clothed and housed, and in time the drain in the stocks of manufac- tured goods will on until the wheels will just have start going round again, when business will get under way and gather momentum. It may be that our industries have overproduced, that our foreign trade in the future wili not be as important a factor as formerly, but that is only a conjecture. Of one thing there can be no doubt and that is that the great home market as offered by the 48 States can not be taken away from home industry. Our neighbors and insular possessions will not desert America. Local Securities. It would seem as if Capital Traction shares had finally found a level where they might rest. stabilized and invulner- lbg to Xu‘rther nlfl:b‘ n a 4 per cent basis, the present dividend, the stock is & much better in- vestment than when it was selling above par and drawing on its surplus for much of the annual dividen ‘The Winter should mark increases in earn- ings as autos are housed and mare peo- ple seek the comfort of the cars. Taxi competition is serious. Mergenthaler’s decline has been com- paratively moderate. Mergy is espe- cially & newspaper typesetter. The company makes general-purpose ma- chines for all kinds of typesetting, but it has more severe competition in job- room composition than in newspaper work. In the latter fleld there has been little plaint of hard times, relatively | few consolidations and much speed, special issues and growing circulation. The fiscal year will show the dividend earned, while the slate is clear of debts, bank loans, good will and other dead- weight. Moreover, the million cash and the Liberty bonds are untouched. Various Potomac issues are bonds of The decline this week in a group of raifroad holding compnay securities is a sequel to a phase of speculation in the past two years in an itch for consolidations. industrial mer- gers 30 years ago were mainly of com- panies in the same line of business. The reaction from them was due chiefly to stock watering and to attempt to stifle competition. The more recent me of rallroad lines, or their control through concerns, ive seemed to P Lo L ST T omoters & e their stockholders. g A large part of the so-called “weak situations” that have developed in Wall Street represent commitments in enter- prises unrelated to the main functions of the corporation or firm under suspi- clon. Linked with this is the fact that under the infection of a speculative era, of the A. B. A, providing for the trans- fer of all rights as trustee, executor, ete., held by a trust company when and in the event of a sale or merger to or vw‘lt{ll‘.:mumuhnk.nnmmr- ving. well and all to be 190 BRANCH OFFICES, Branch banking is well established in Philadelphia. ~Forty-four national g3 2