Evening Star Newspaper, January 4, 1931, Page 61

News of Markets Pages 1 to 5 Part 6—10 Pages DEPOSITS HIGHER IN LOGAL BANKS SINCE SEPT. CALL Controller Asks for Repbrts From All Institutions as of December 31, 1930. MARKED GAINS SCORED IN SEVERAL INSTANCES Substantial Growth Also Shown During Full Year—Thrift Wave Helps Accounts. BY EDWARD C. STONE. Following the call issued yesterday by Controller Pole, asking for the con- dition of all Washington banks on De- cember 31, 1930, indications pointed to & gain in deposits over the figures re- ported on the call of September 24 last. Of the banks reached before closing time yesterday noon, 12 reported gains in deposits and 13 a falling off since September. However, some banks an- nounced such substantial gains that it is believed that the aggregate total of the 40 banks operating here will show a moderate increase. ‘The showing caused general satisfac- tion among local bankers. Some of the banks reporting small declines over the September call announced that the re- ings . The banks as a8 whole paid zfi -hou‘t $7,000,000 in '.h;.l WaY. Wltll;l; awals for other year-en purposes & drew deposits down temporarily. ns with the call of De- cember 31, 1920, are even more inter- esting as they indicate that nearly all the banks in Washington have made wery substantial deposit progress in the past ‘The banks year. e ect a year of most remarkable thrift on the part of the patrons. Below are given the figures of as many banks as could be reached yes- terday after the controller'’s call was sent out, the reports of December 31 being compared with the previous call of September 24: Last Two Calls Compared. FINANCIAL AND CLASSIFIED he Sunday St WASHINGTON, D. C, SUNDAY MORNING, JANUARY 4, 1931. Bankers’ Chairman CLAUDE H. WOODWARD, Chairman of the District Bankers' Asso- ciation Convention Program Committee. The other members of the committee were appointed yesterday. INVESTMENT BOND MARKET IMPROVES Many Issues Respond Quickly to Better Demand Dur- ing Last Week. Special Dispatch to The Star. NEW YORK, January 3.—In the past week the bond market successfully turned the end of 1930, was relieved of its depressive load of tax selling and, starting the new year, was buoyant un- der the influence of the seasonal rein- vestment demand. ‘The manner in which speculative is- sues bounced from their lows on Friday was evidence of the presence of a short interest, but even high-grade invest- ments made gains running to as much as a couple of points. There was a good deal of purchasing by investment houses looking for an immediate upturn. Banks and insurance companies were back in the market. Money Rates Remain Low. Money rates, beyond a slight flurry just before the year ended, remained at their bof ‘The volume of trading, 586 | while nol' large, was of satisfactory pro- 8 | portions. Standard Statistics index of 291 244 | 30 bonds showed a gain of a compared with $46,012,124 on Decem- ber a year ago, a gain of almost $8.000,000. Other banks have also made splen- did in .proportions commensurate to their size. Program Assistants Selected. Chairman Prederick P. H. Siddons of the 1931 Convention Committee of the District of Columbia Bankers' Associa- gram H. Woodward, president of the Mount Vernon Savings Bank, as chairman and Charles H, Doing, vice president of Washington Loan & Trust Co., as Already named: E. J. McQuade, vice president Lib- National Bank; H. H. McKee, V. iai';“m?" c‘flmz mgn N ert , presiden o ictor Deyber, presi- can National Bank and Trust Co.; Francis G. Addison, jr., president Se- curity Savings and Commercial Bank; Howard Moran, vice president Ameri- can Security & Trust Co.; Joshua !nnx:. jr., president District National Ba New Listing on Exchange. ‘The Board of Governors of the ‘Washington Stock Exchange has ‘Woodward & Lothrop common on the local board. The preferred stock has been on the exchange for a long time. ‘The dividend which the common stock is to pay has not yet been decided by the Woodward & Lothrop directors. ‘The opening bid on the stock yester- day was 25. Saturday trading on the exchange ‘was quite active, the following trans- actions taking place during the session: ‘Washington Gas 6s “A”—$200 at 102. ‘Washington Gas “B"—$500 at 106. ‘Washington Rallway & Electric 45— $1,000 at 86. Capital Traction Co.—20 at 40, 10 at 40, 10 at 40, 1 at 40. Potomac Electric 5% per cent pre- ferred—10 at 1073%. ‘Washi Gas Light—9 at 118%, 10 at 119. ‘Was] hington Loan & Trust Co.—1 at Federal-American Co. common—10 at 28, 10 at 2 at 28Y,. Lanston Monotype—5 at 102. Mergenthaler Linotype—10 at 86, 10 st 86, 5 at 86%. NEW LEADERSHIP SEEN IN ECONOMIC MARCH Special Dispatch to The Star. NEW YORK, January 3.—The com- ing decade will differ in several broad economic from . | secured. Ral familiar eco- | Ne: point. But it was not in what the market did that the Street manifested the most interest. The market's prospects, ac- Men who look upon the bond market as a sound and conservative mart, in which the dollar has & chance for sur- vival, were ‘profoundly impressed when they examined the annual bond market tables and found net declines of from 5 points spread all through the list. in mind that investors in It is interesting to note, however, that at exisf levels bonds are more at- tractive n their yields are compared to money rates than at any time since 1920. Acco g to a study compiled this week, the) excess of representative bond yields oer the average cost of money is 1% cent. It is therefore logical to suppos, that, if there is no oversupply of new\issues, if industrial earnings do not dip new lows and cause renewed bond Hefaults, and if money rates remain ically cheap, bond prices will fill the gap. As to new financing, thire is a great amount in prospect. Much' of it, how- ever, is municipal and there is a steady market for such bonds. Second and third grade industrial and public utility financing will have to await a much more fortuitous market than the present, unless it is done by way of short term notes, attractively priced and ilroads and other corpora- tions whose bonds enjoy the favor of the list legal for investment by s&vings banks and trust funds will have Zittle difficulty in putting out their offerings, but even these will have to be pficed closer to the market than was the €ase in the early part of 1930. Foreign List. In the foreign department many sofy spots were seen at the end of the week, Bolivia defaulted the January 1 interest on a 7 per cent issue. Panama became embroiled in a revolution. England faced a coal strike, with prospects of the trouble spreading. e Mexican Congress adjourned without taking action of the debt refunding agreement. Argentina was forced to assume responsibility for a $16,000,000 credit which the city of Buenos Aires could not conveniently pay. (Copyright. 1931.) NEW ;ORK BANK STOCKS NEW YORK, January 3 (#).—Over- the-counter market. Closing bid and asked prices of New York banks and trust companies: Asked. America 60 Chelsea .. Chemical ' oity ... Commercial Eirst Nationa Bankers ....... Brooklyn “Trust Central Hanove: Continental Corn Exchange pire .. Guaranty rving ... Manufacturer: w York Trust. INVESTMENT TRUSTS NEW YORK, January 3 (#).—Over- the-counter market. Beposlied Bank She sei P %Nn%flg{‘ ser B..... ependence s & Curtis Invest Astoc. 37 jers of Industry . '8 aders of Industry s Mass_Investors Trust . Nat! Indust Shrs Nor Am Bid, Asked. . 1% T STOCKS SHOW FIRM UPWARD TRENDS IN NEW YEAR TRADING Constructive Note in Railroad Merger Announcement Aids General Market. PRESSURE ON LIST LIFTS AS TAX SALES CONCLUDE Early Part of 1931 Expected to Bring Harmony Into Many Industries. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, January 3—It was & common saying in the latter part of 1930 that, until some development oc- curred that would turn the mind of the public away from the disintegrating effect of declining prices of securities and of commodities and fix it on a spe- cific program of a constructive nature, there could be no more hope of a re- vival in business or in stocks. An event of the desired nature has taken place this week in the announced agreement of the four Eastern railroad systems to effect a consolidation that will be in the public interest and per- mit them to launch out on a campaign of expansion stimulating to every branch of industry that prospers as the carriers have the means or are in the mood to progress. No less inspiring than this fact is the evidence of leadership in Washington and in Wall Street in promoting an entente in the field of steam transpor- tation that may encourage others to look forward and not backward. Four Lines Make Concessions. The proposal for a division of the trunk line territory has the approval of President Hoover. It is the result of concessions between four of the strong- est rallroad systems of the country, en- couraged by their bankers and a major- ity of their stockholders. It is in ac- cord with the spirit of the transporta- tion act passed by Congress in 1920. It has been, in effect, advocated by the Interstate Commerce Commission. It promises to improve railroad service in the area covered by the mergers. There is every prospect that it will quicken the puise of business. Those who op- pose it have nothing to offer that will equal its influence for betterment of conditions from which the entire coun- right to merge, it will be because Con- gress, which 10 years ago favored con- solidations in the public interest, now rejects the idea, or through the unwill- ingness of a majority in the Interstate Commerce Commission to stand by pre- vious declarations in behalf of a unifi- cation of systems east of the Mississippi and north of the Mason and Dixon line. Effects on Labor Anticipated. It is obvious that the benefits of con- solidation to the carriers must come large] curtailment of duplicate service. This affects labor. Probably 75 per cent of the economies to be effected will be in .the item of wages. The road that other mergers pro- posed in the Northwest and in the Southwest in recent years have had to | working f travel has been over a natural opposi- tion from those who saw in them the loss of positions at division points, in shops, in offices and as members of train crews, net threat of still greater unem- ployment in railroad service, where the total employed has been falling month by month, is one that has been an- ticipated by the carriers. It may be said that every means will be taken to avoid displacements and reallocation of per- sonnel, while the consolidation’ plans are being carried out. Neither Presi- dent Hoover nor the men who have been most active in bringing about the merger agreement would have spon- sored it had not assurance in favor of :nlmum considerations for labor been ven. Trade Stability Furthered. There are indications that the early 2:11 of 1931 will be notable for efforts bring together interests, whose con- flict in policies of production and dis- tribution has contributed to the de- pression in business and in securities for the past 16 months. Some progress in this direction has already been made in the copper metal trade. This is now being evidenced in the greater stability of copper shares. In 1930 these shares depreciated over $1,250,000,000. The movement has re- sulted this past week in the smallest output of crude oil since the Summer of 1926. As one of the major indus- tries and one whose securities are widely held, an improvement in the petroleum trade is highly essential to ‘general prosperity. Oil stocks last year &howed a net decline in market value of @pproximately $1,800,000,000. It is also Bir to assume that indications of @reater friendliness in Washington to- Ward the railroads will modify the at- titude of Congress and Government cammissions toward the public utili- ties, whose shares on the New York Exchange in the last 12 months de- preciated over 50 per cent, or about $2,250,000,000. in the banking world there are signs of greater co-ordination and strong leadership since the epidemic of bank sxmemlons broke out last Autumn, T has been reflected recently in an absence of bond liquidation, followed this week by a vigorous recovery in all of domestic issues, The stronger market for both stocks and bonds since the end of the year is not based so much on a favorable change in sentiment as on a change in technical conditions. If there were ever any doubt as to the effect of tax sell- ing, % must have been dismissed dur- ing the past 24 hours. Without any direct improvement in their speculative or vestment status, securities re- bounded many points when freed from the pfessure of liquidation whose main purpoge was to reduce income tax pay- ments, (Copyright, 1931.) FIRST REPORT ISSUED « BY BANK OF AMERICA teh to The Star. consoli ind liabilities of its State affili- e Bank of America (California), Trade Trend and Outlook Head of General Electric Co. Explains Its Policy in Endeavoring to Maintain as Large a Working Force as Possible at All Times. BY J. V. FITZ GERALD. Special Dispatch to The Star. > NEW YORK, January 3.—The secu- rity of jobs for the worker is a goal for which industry should strive as a means to prevent possible future periods of unemployment with the accompanying usiness depression, in the opinion of Gerard Swope, president of the Gen- eral Electric Co. ‘The experiences of recent months have made him and many other indus- trial leaders of broad vision realize more than ever the value of any program which will tené to minimize unemploy- ment and make wage earners worry less, from day to day. about whether they can keep their jobs “It is realized that the first step in solving the problem of unemployment in industry is to use every available means of keeping men at work,” Mr. Swope said. “The study of ways and means of bringing some form of relief to em- ployes for whom no work can be found in times of general industrial depres- sion should go hand in hand with efforts for greater stabilization. Feeling of Security Necessary. “The important thing in industry, as in life, is that all men and women, in order to devote themselves whole-heart- edly to the tasks before them, have their minds at peace. They must have a feel- ing cf security in regard to taking care of the responsibilities that lay before them. That is. first they must have 8 liking for the job on which they are working, and then a feeling of security for the future. “This the General Electric Co. is en- deavoring to meet, but always along the line of working with the men. There- fore we have: 3 “First, a .f2 insurance plan to which :he men and the company are contribut- ng. “Second, a plan for assisting employes to purchase or build homes. The com- pany never becomes a landlord, but as- sists those who wish to acquire a home. “Third, rather than have the men in- vest in the common stock of the com- pany, which is subject to the fluctu- ations of the market, we have provided & company where the General Electric Co. takes the stock risk and the em- ployes invest in the bonds. These are redeemable at any time for the amount the employes have put in, and while they are in the active service of the company they receive a return of 8 per cent on ' their investment. The employes are also represented on the board of governors. “‘Fourth, our pension plan to provide for old age. Both employes and com- pl'x%'“ S:nmgfine to the lxun& . 3 e unemployment plan, which also is co-operative, with the un- usual feature of the unemployment emergency.” Employment Policy. Stabilization of employment is now being ht by his com through the out of a definite policy, Mr. Swope explained. Leaders of in- dustry in other fields will await the outcome of the experiment with great interest. Once it shows signs of work- uccessfully it will probably be ted by manufacturers in general, ei%cx;l wfifi{, or uu; n.:h:nurety‘ 'nder policy com) lans, when business is increasing, %y gwnpe said, to “increase the working force by adding and to employes as slowly as possible ally “busy depariments by iransiors from other de) nts.” i contemplates a resort r ore in the . It would gm‘mpml‘ pone plant renewal and maintenance work as much as possible, employing the men on regular production, ‘When work begins to fall off the plan calls for the following policy, Mr. Swope pointed out: “Cease at once. Cut out all possible overtime and bring departments down to normal week. Transfer people from slack to_ busier departments. Stimulate the sales de- partment to retain co-operation from &:fi:{)mfl;s and get business for future ery. Further, Mr. Swope explained, the plan would call for the building of standard apparatus for stock up to the number of months shipments based on the average of the last three years' sales, adjusted to the expectations of the next two years. In this connection the company has announced that 50 weeks of work of STRENGTH IN METAL MARKETS IS NOTED Steel Industry Reports Better De- mand—Copper Values Hold Firm, January 3.—A better feeling was evident in the steel market at the opening of the year. There has been a gain in first quarter contracting cpvering many lines, and the trade was impressed with the prospective tonnages Yor public and utility projects, part of which will be the Government program, funds of which were very recently ap- propriated by Congress to help the un- employed situation. Improvement in rallroad buying was also looked for. In- got output for January is expected to improve materially. Prices were quite steady, some material showing the best un;etln & year and a half. Pig iron was quiet. Copper held steady with domestic prices quoted in all guarters at 10%; cents for electrolytic delivered in the Connecticut Valley. The c..f. quotation was advanced 3 cent to a parity with the domestic price. Foreign buying was in moderate volume, but smeiters are sald to be exvecting an improvement as consumers have covered future require- ments to only a limited degree. Domes- tic fabricators have remained out of the market pending development of demand for finis] products. More definite in- dillcatllnnsml.:‘: exp::uguw be availabl shortly e automotive and buil industries. S The tin market reacted toward the close of the week as a result of an un- expected easy tone abroad. There was an optimistic situation existing on the cf lucers wit effort to supplies. e e CHEVROLET OUTPUT. NEW YORK, January 3 rolet Motor Co., ber totaled 64,01 uction for pany’s history, W. S. Knudsen, presi- Mai dent and general manager, announced | M on his arrival for the New York Auto- mobile Show. ber is d GERARD SWOPE. not less than 30 hours each week have been guaranteed for 1931 in the incan- descent lamp department. “We feel that we can do that in this department,” Mr. Swope said, “as there we are dealing with a standardized product, not subject to obsolescence or deterioration. Therefore we can keep a steady production throughout the year by manufacturing lamps for stock dur- ing the Summer, when the demand is not so great, for sale in the Fall, when the days are shorter and therefore the demand for lamps is greater. Other points in the stabilization plan, explained Mr. Swope, include bringing up to maximum stocks at all fac- tory and district warehouses, and the use of men on maintenance and repair work to bring plant and equipment up to a high standard. The normal week would be cut as generally and as gradually as possible, by departments, down to 50 per cent of the normal week and construction of increased plant fa- cilities previously planned would be glunwd, using employes as far as possi- e. The unemployment emergency fea- ture, Mr. Swope said, consists briefly of a fund to which joint and equal con- tributions are made by employes and the company. “There is joint participation in the administration of the plan,” Mr. Swope continued. “It provides for aid, through group action, to thoseworkers who are in need, require temporary loans, be- come unemployed, or for whom only part time work is available. In times of unemployment emergency it involves co-operation and assistance from those employes of thee company not usually affected by unemployment, and assist- ance by the tompany in equal amount. A Starting Point. “This plan is not final, in form or in substance, and may be modified by joint action of the employes and the company. Frankly, it is an experiment, and none of us knows how it will work out. In any event, it is a starting point. The company is glad to join its employes, first, in trying to find a so- lution, and, second, in ameliorating the tragic effects of unemployment on par- ble for their unemployment.” Stabilization of business in general means stabilization of employment, Mr. Swope believes. This naturally means more constant buying power, with re- sultant benefits to manufacturer, whole- saler, retailer and the public to com- plete the cycle. Mr. Swope is optimistic regarding the the electrical industry in | power companies throughout the United | States for 1930,” he said, “show only a slight decline in the use of electric power by commercial organizations and in industry and show that the electric energy used in the homes, even in a year of depression, increased over 1929. “We expect this course to continue and therefore look ahead with confi- dence, believing thaf, the electrical manufacturing business as a whole, in this new year, should surely be no worse, and somewhat better, than in 1930.” (Copyright, 1931, by North American News- paper Alliance.) WHEAT VALUES RISE IN ERRATIC MARKET Profit-Taking Sales Cut Down Early Advances—Close Is Unsettled. BY JOHN P. BOUGHAN, Associated Press Market Editor. CHICAGO, January 3.—Wheat and corn both developed an upward trend today, but encountered profit-taking sales on the part of recent buyers. An incentive to new purchasing was talk of negotiations for a lon to China which would permit of imports of grain on a la: scale. It was asserted that wheat imports were now cheaper than rice in the Orient. Wheat closed unsettled Y5 to % cent net higher, corn unchanged to 1 cent m. oats ¥4 to % cent advance and pro- jons unchanged to a rise of 12 cents. Predictions of smaller world ship- ments tended to strengthen wheat, and so likewise did an official forecast of generally fair weather next week over domestic Winter crop territory, where moisture dearth has been complained of. Indications of export business in Canada were a further encouragement to buy- ers, together with word of adverse har- vest conditions in tina. m;m prices for corn acted as an additio; stimulus. Big shrinkage of corn_receipts at- tracted much attention. Primary corn arrivals were but 507,000 bushels against 1,610,000 a year ago. Chicago had only 1 cars, compared with 189 at this time in 1930 and , St. Louis and Kan- sas City receipts were also meager. Omaha advices said 40 stations called had been able to furnish only 2 cars. Oats sympathized with corn. Provisions held about steady. M (). —Chev- o o B for ticular employes, in no sense responsi- | PrX Classified Ads ) Pages S to 10 FOREIGN BUSINESS PENNEY CHECKS UP DISPLAYS HOPEFUL TONE DURING WEEK Rate of Increase in Unem- " ployment Has Shown De- cline in Europe. CONDITIONS IN AMERICA ARE WATCHED CLOSELY Trade Leaders Prepared for More Aggressive Program During New Year. Speclal Dispatch to The Star. NEW YORK, January 3.—Cable dis- patches to the Business Week give the following survey of business abroad for the week ending January 3: Europe.—At the end of the year Eu- rope is taking stock of what has hap- pened to business in 1930 and what 1931 is likely to hold in store. Foremost among the political-eco- nomic issues will be the tariff truce and associated problems of trade relations; secondly, the necessity for realignment of European economic rivalries and in- terpretation of the most-favored-nation clause, occasioned by attempted forma- tion of an Eastern Europe farm bloc and customs union, and, lastly, co-ordi- nation of central bank policies and ef- forts of private bankers to restrict ac- tivities of the International Bank. Business Confidence Gains. Year end trends—The Autumn sea- sonal revival fafled to come up to ex- pectations, due primarily to the out- break of political disturbances. Busi- ness confidence, however, ' has slowly gaining since mid-November, with sporadic evidence of actual im- provement in individual industries. Though unemployment has reached new record post-war levels, the rate of increase in recent weeks is below pre- vious years. Given at least stability in other important world areas, business in Europe seems prepared to make the new year a turning point for more ag- gressive new departures. Conditions in the United States, however, are the main cause of concern, the belief being | d: general that no improvement in Eu- rope can go far as long as conditions in the United States hold a possibility of further disintegration. Rapid recov- ery, even under most favorable condi- tions, is an improbability. On the other hand, incipient improvement may be expected to gain momentum concur- rently with the progress of economic adjustments. It is generally expected that conditions at this time next year will show appreciable gains—always providing no new developments, polit- ical or otherwise, occasion setbacks. London.—With Christmas followed by a bank holiday, little business was done last week. This week opened quietly, with all commodities slack except coal. Stock markets are not active, but the tone is better. The metal market was erratically active on the announcement of the tin-restriction . The ice jumped to $605 from the low of $585, registered before the holiday. Reduction of the Pederal Reserve dis- count rate in New York took London by surprise. It is generally interpreted as a gesture to reassure Wall street rather than something of international significance, though it is expected it may cause a flow of French funds to New York, thus relleving the French gold drain on London. “The spread-over” scheme of work: ing in the coal industry has been cepted in all districts, but Jocal trou. bles in South Wales threaten a stop- page when the present truce ends. In view of the large surplus stocks at the pitheads in Germany and Poland wait- ing to gobble up British markets should the stoppage become effective, the Brit- ish public is inclined to look upon.pro- tracted disagreement between labor and | importe owners as incredible in the present de- pression period. Restrained Optimism. Lancashire mill owners face & major walkout if they persist m introducing the “more loom” system. The country faces the new year with restrained optimism. Statements from important industrialists lead to the fear that Britain is {mm{l 1- .;ztmt wtttt.wh old war between caj the ,normal citizen apathetic. Social services, excluding war pensions, cos 1,709 millions last year compared with 316 millions in 1911. On the other hand, Britain is gradually getting costs down by effecting rationalization and pursuing & more modern sales policy with the basic expectation that a better year is coming. Paris.—France was carried well into 1931 on the momentum of the pro- nounced business boom of the preceding 2 years before the influence’ of world depression_and reversal in its own do- mestic cycle began to take effect. Dur- ing period of steady decline of world prices, French domestic values continued upwards and reached new peaks under the influence of increased import tariffs and current inflation. France consequently carries forward into the new year a swollen price struc- ture. Where other countries now are looking to 1931 for recovery or stabiliza- tion, France faces a year of deflation through which the others already large- ly have passed. Business views the prospects ahead seriously, realizing that deflation has become an economic necessity, but that no deflation is fundamentally possible without the correction of certain con- ditions which have grown up during the inflation Christmas Trade Good. Berlin.—The Christmas calm has completely dominated politics and busi- ness. Sentiment is largely shaped by two factors—unemployment, which passed 4,000,000, and the new lows on the stock market. Reaction to the re- duced discount rate in New York has scarcely the discussion stage. Oh: trade, despite gloomy pro- phecies, was above expectations. While uh:tz‘:}lmrm dtn ipared 1312 cen per cent com wi year, of necessities, including foat | iarch ALFRED P. SLOAN, JR., President of General Motors Carpora. tion, whe has declared that Axierican business during 1931 will be “exactly what we make it—no better and no worse.” QUIET TRADE WEEK NOTED IN REVIEW Department of Commerce Reports No Improvement in Holiday Period. By the Associated Press. Business conditions failed to improve during the holiday week ending De- cember 27, as the progress was meas- ured by the Department of Commerce in its weekly review of the situation at home and abroad. Bank debits showed & decline from the week previous, and were also under the corresponding week in 1929. Business failures decreased from the week previous, even after c are made for the number of business ays. Total loans and discounts ef Federal Reserve member banks continued the fractional decrease of the previous four weeks, but in comparison with the same week in 1929 a decline of 6.3 per cent was recorded. + Interest Rates. Interes. rates were the same as & week ago for time money, but call money rates were lower. Both rates ago. Wholesale commodity prices dropped Fcorded s yeur, Farm producta, recol year. tiles, metals and : terials during groups alone ton middling anl The receipts of wheat at it centers continued to increase over the previous continued ver curred in bituminous coal production and in building contracts awarded in 37 States. Declines from the previous week were recorded in the production of steel ingots and in petroleum pro- duction. Weakness of Peso. ‘The continued weakness and larity of the peso exchange is frregu- visibly refiected d n the higher prices paid for goods in the Argentine and has resulted in the reduction of the demand for and the sale of such goods. The unimproved credit conditions ob- taining in Buenos Aires and in the foreign manufacturers and shippers. In Brazil the business outlook is gen erally considered unpromising, owing largely to the unsatisfactory financial position of the government, continued low coffee prices and exchange tainty. The credit situation is increas- lnllg unsatisfactory. volume of Canadian business in 1930 is now estimated at more than 20 per cent below the 1929 turnover. Little hope is held for an early recovery in 1931, although a substantial improve- ment is anticipated in later months. COTTON PRICES FIRM ON COVERING SALES Trade Buying Also Tends to Lift Market—Close Is Strong. By the Associated Press. NEW YORK, January 3.—Cotton was generally firm and higher today on continued covering and trade buy- ing. An opening decline in r to the Livi cables was quickly recovered and while there was enough realizing to cause some irregularity, levels of the prices reached the highest day in the late trading. up to 10.29 and closed at 10.28, with the general market closing firm at net advances of 10 to 18 points. Cotton futures closed firm, 10 to 18 higher; January, 10.21; new contracts, January, 10.09; March, 10.28-20; May, $5:05; ecorber, 11.05. ‘Spo sieads, -95: mber, 11.09. g 'middling, 10.30. January, old Ja ary, clothing and shoes, showed remarkable resistance. In man; y scarcely dropped below the figures for 1929, '.gou!h values dropped from 10 per cent to 15 per cent, depending on the fall price. FINANCE COMMISSION TO SAIL FOR PERU | 8pecial Dispatch to The Star. NEW YORK, January 3.—Headed by Prof. E. W. Kemmerer of Princeton University. a group of experts in gov- ernment finance, today on_the steamshi) A telephone which tells of the|The 10 | owner's absence takes a of the republic of Peru. ‘was at the of Peru, the ap- cases, volume | Pec NEW YORK, January 3 (). Oil & Gas Co.,, and Prairie Pj] Co., are or the petro- lustry and some announcement regarding the newest the company’s is a few weeks, of report. No of- ficial comment w nable. The re- assembled by invitation of of the porters are accustomed to receive from | the uncer- | em} ON EXTENT OF DROP INSTORE BUSINESS Company Official Does Nof Believe Figure Will Greatly Exceed 10 Per Cent. DECLARES QUOTED VALUE OF STOCKS DECEPTIVE Says Many Issues on Board Do Not Reflect Worth of Cor- porations. BY JOHN F. SINCLAIR. Special Dispatch to The Star. NEW YORK, January 3.—J. C. Pen- ney, 55, chairman of the board of the J. C. Penney Co., which, operates more than 1,500 department and dry stores throughout the United States, having gross sales of about $200,000,000, is checking up figures to learn just how good or bad business was in 1930. “I am of the opinion that a 10 per cent decline in the ess of chain department stores will not be greatly exceeded, if it is reached, in the sales figures for 1930, as compared with .u:lole otl 1929,” Mr. me:"l ’n;ld “‘Gross les of our company 0 may ex- ceed of any previous year, with the exception of 1929; computed on the b‘lho!lve:‘emuperlm.mfll- u showing, a natural reflection of the fact that dur- ing the last two years we have added located in small com- Wage Scales. “In your opinion, can wages be held indefinitely at their present levels, while prices continue to decline?” I asked. “So far as I can see, every effort is l&eln: m to main m“ n&:: rela- ve ra buying power wi dollar that was maintained during ‘Lh‘: ediately prec: the pres- ent economic situation,” said Mr. Pen- ney. “That, after all, is the important thing—the maintaining of the relative ;mrvmembuyin.pomolmew ollar.™ “Do you believe that short selling' should be curtailed or prohibited on the New York Stock Exchange during de- pressions in business, as many are ad- vocating?” was my next question. “I see no hy governmental action should be asked to curtail short selling_any ‘more than I same Government transactions this point of view during days was forgotten entirely. “The price level continues to drop, not only in the United States, but throughout the world. Do you see any permanent recovery until this situ: is corrected?” was my next question. “It is undeniable that the last few years have witnessed one of the great- est orgies of price inflation the world has ever known. A reaction to such & condition is a natural economic occur: rence. Producers, manufacturers and distributing agencies must adjust theme selves to the basic conditions upony which sound prosperity is dependent. this adjustment will be of productiond Mass production, as such, is not justi= fiable unless it is based uj & sound knowls of the powers of the market to_absorb output.” lere’s another revolutionary idea, aced in the innocent phrase “sci- entific control of production.” ‘The matter of unemployment has al- ways been a subject of great interest to Mr. Penney, for it deals with the hu- mane, the personal side of commercial life. He is known to have made more of his partners wealthy than any other business man in the history of America, with the exception of John D. Rocke- feller, sr. The J. C. Penney Foundation has spent millions of dollars in giving hundreds of old ministers (his was a minister) a home in Florida. “Do you favor an unemployment in- surance plan, supported by industry and supervised by the State, to alleviate further unemployment disaster?” I asked. “Would a five-day week, or & shorter one, help?” “Unemployment distress, as we see it today, is something which could not be alleviated by unemployment insur-. ance,” was the quick response. “Such insurance is a consideration for the fu- ture protecting a recurrence of present situation. In certain industries, the short week seems to offer the possibility of increasing the unit pay roll by 16 per cent. In other industries, 1t would mean a similar curtailment of productive working time.” “Would a modification of anti-trust laws be of especial value now?” was my . political attempt to development of business. seem to work in the long run. In gen eral, the public has benefited the activities of large organizations, most cons) results of whose ef & forts have been to simplify manufac- , distribution costs and afford &