Evening Star Newspaper, January 24, 1931, Page 13

FINANCIA T TREND DOWNWARD | [NEW YORK CURB MARKE N CURD TRADING Price Changes Mixed as Market Encounters Pe- riods of Selling. b BY JOHN A. CRON ®pecial Dispatch to The Star. NEW YORK, January 24.—Punctu- ated by two periods of selling, the Curb Exchange today finished with mixed price changes, but with the trend gen- erally slightly lower. Trading slowed on each decline and tended to quicken on the rally that took place at the end of the first hour. United Gas again was the outstand- ing leader of its division. Opening on & block of 5000 shares at 117, un-| changed, it steadily slipped off to 11! at which level it showed stubborn resist- sance and was inclined to advance. Small moves in the higher-priced in- dustrials like Aluminum Co. of America and Great Atlantic & Pacific Tea were followed by a flurry in miscellaneous industrials, many of which appeared on the tape for the first time this week. The usually active low-priced gold shares also began to appear and were trailed by such coppers as Hudson Bay yMining, Noranda Mines and Shattuck Denn. Anglo-Chilean Nitrate rose a & ‘Then came a spurt in the motors. Ford Ltd. opened off 5% at 18%, but before the end of the first hour was above the 19 level. Ford Motor of Prance at 9 was up a point. Cord Manufacturing was dull. The omission cf the quarterly com- mon dividend by Massey-Harris caused traders to shy at farm implement shares today. Deere & Co.. the only issue in this group to appear with any degree of frequency, fluctuated within a point range. E General Theaters Equipment prefer- red overshadowed all other movements in the amusement list. Columbia Pic- y tures, Fox Theaters A and Technicolor were moderately firm. ] United States Gypsum, which has lied for listing on the New York Exchange, was up fractionally sgain today. Atlas Plywood opened up %. Bwift & Co. eased. Glen Alden Jost an early gain. General Fireproof- ing sold off. BONDS ON THE CURB MARKET. DOMESTIC BONDS. High. Low. Close. s 67 99 O " 35 '68 1083 103% 103% uminu ; 2 1040 3 Aluminum Ltd 55 48 99 99 99 6Am Cmwih Pw 65 '40 80 1n thousands. bama Pw 1 i Dis s 19 Enic, Ry cog 8 2027, in ar 8las ‘52 Cltles Service 85 '30 0! fogge y_Pki LETEEE S505 E 8 35‘:: (73 T 2R2LUT TR 2R IR2SA LT 282! SSossadssnsge 8 3 S S S G S A a 55 '35 onal Tes ner Bros 6s 1 Neis: Bosserel-anmatB it e t L Gas &.C 6 0;! n’Ant s 3 axer Co 68 A 45. . B 3 5 in s &% o8 ] oot Basns ! E22225>5 8% 23 o, 3 14 53 058 35eg228e » oL REbE 5 56 9935 : i N 102 96 3 YA BD Ser i A 46 9814 aldorf-Astor 75 ward B 8l 10113 02 i Rio de Jun 63 3 Ruhe " Crem on Rubr G Co 6’ ; xon Pub innes W, Unit Indust 6'as '41. ithout warrants. 1tssued. ! 1 exce%unl those des) which shows those s —Prev. 1930.— Stock and | Hish. Low. Dividend Rate 20% 9% Affiliated Prod 1.60.. 68 Axfa Anscopf.. 111 Ala Pow cum pt (7). 1§ Alexander Indust. 4% Allied Mills (60c) . 01 Aluminum Co of Am 7% Aluminum Co Ltd. .. Alum Goods (1.20) .. Alum Ltd A war Am Austin Car..... AMCP& LA (ad).. AmCity P&L B b10% Am Com P’ A (h10%) Am Cyanamid B. Am Equities. . Am For Pow war Am Founders. . Am Gas& Eln (31).. Am Invest Inc B Bales— 7 8 268 6 608 11 3 s R 14¢ 4758 16 [3 16} 1 8 3 Am Natural Gas. Am Superpow (40c). Am Tel & Tel 2d pa. . Am Thread pf (25c) . Am Ut&G B vte(20c) Anchor P ¥ (b10%). Anglo Chil Nitrate, Appalachian Gas Arkansas Nat Gai Arkans 29 Assoc G & El war. Assoc G & E pf (5 Ass0 G & Elct (8)... Assoc G & Eall ctfs, Atlas Plywood (2).. Auto Vot M cv pt pt. Aviation Cp of Am.. Bahia Corp isiue Ridge Corp. Blue Ridge cv pfa3. Braz Ti & Lt (b8% ) Buckeve P'L (4).... Buft N&EP pf (1. Butler Bros. .. Canada Marconi J Cent Pub Sv Aal.76. Cent St El (k40c). Centrifug Pipe (60 Chat Ph Al n.v. (1) Citles Serv (g30c). Citles Serv pf (6). C Illum (1.60). Clev Tractor ($0¢) Colon Oil. Col Oi1 & Gi Col Pict vte (f1%) Cmwith & Sou war. . Com Wat Sv (b6%) Consol Auto Merch. . Consol Copper-. . Consol Gas Balt 3.60. Consol Laund (1).... Cooper Bessemer (2) Cord Corp. Cosden Oil Creole Petro Cresson Cons Crocker W he . Curtiss Wright war. Cusi Mex Mining.... Dayton Alr & En. .. Deere & Co (g1.20).. Detroit Aircraft. Dress SRA (313)... Dresser Mfg B (2).. Driver Harris new Driver Harris pf (7). Dubilier Cond & Rad Duquesne Gas Cp wi. Durant Motors EastG&F A East Util Inv A Eisler Electric Corp. Elec Bond & Sh (b6) Elec Pow Assoc (1). Elec Pow Asso A (1) Elec P & Lt op war.. El Sharehold pf (af Emp Corporation Emp Pow pt (14.60), Emp Pub Sv Aal80. Europ Elec deb rts Fabrics Finishing. Fairchild Aviation Fansteel Produot; Flintkote Co A. . Ford M Can B 12.10. . Ford M France 2c. . Ford M Ltd (p3T3). Foremost Dairy Pr.. Foundation For Sh Fox Theater Cl A Gen Aviation Gen Baking. . . Gen Baking pf (3)... 4 Gen Fireproof (2)... Gen G&E cv pt B (6) 200 Gen Laundry Mach. . Gen Th cv pf wi (3). Gerrard (SA) Co.... Glen Alden Coal (8). Giobe Underw (30c). Gold Coin new Golden Center. Goldfield Consol . Goldman Sach T C A&P Tean.v Guif Ol of Pa (114). Hall Lamp (40c).. Happiness Candy Hecla Mining (1) . Helena Rubenstein. . Hudson Bay M &S .. Hydro Elec Sec (2).. Hygrade Food Prod. Imp Ol of Can (50¢) Ind Ter Illu Oil A. Ind Ter Iilu Oil B. ind Pipe Line (3) Insull Ut (tb10% %) Insurance Sec (10c). Intercontinent Pet n Int Petroleum (1)... Int Utilities A (3%). Int Utilities B Intersta 24 1 2651 161 . 2 62 1 Note—All stocks are sold in one hundred-sha; ated by the letter s (80s) (2508), ks were sold in odd lots. Add 00. Open. High. ~Prev. 1930.— re_lots By High Dividend 1 Irving Air Italian Sup Italian Sup . Low. Close. 14% 67 13 Ky 4% 7 3 " 5 5 0 162% 1 8l 15 Leh C& N Lily Tulip Lion Ol & Loew's Inc LoneStar Long Islan Louisiana Magdalena Mavis Bott Mead John Mercantile 5 1% 1% 3m Mid St Pet Mid W St U Mount Pro t Elec P At Inyest t Rubbes N Y Tel pt Niag-Hud Noranda M Nor Am Av Nor Am Ut Nor Europ Oliver Farn Outhoard M PACG & E Pac Pub 81 Pandem O} PenderD G Philip Mor Ple Bak of Pitney B P Prince & W PS of N Il Pub Ut Hol Pub Util Hi Pub Ut Ho Rainbow Li Reliance M Reybarn Co. Reynolds 1 Roosevelt St Anthon St Regis Paper (1).. Saxet C Schulte T Seaboard Util (50c). Seg Lock & H (50c). Selected In. Sel Ind (fu SWG&E Stand Of1 1 ‘Technicolo Teck Hugh: Tri-Cont Cq Tubize Cha Twin 8t N G pf (A).. Ungerieide 'n NG of C Init Corp w nit Dry Dock Equij nit Fou ( “nit Gas C ‘nit Gas w Tnit Gas p Unit Lt &P Unit Lt&Pwr(B) (1) Unit Lt& P U S Elec Pow. U S Foll (B) U 8 Gypsun U 8 Lines p It P&l cf Jtility Equ Util & Ind. Vacuum (4 Van Camp Walker (H Wil-Low C Wil-Low ¢ ygstn S&T G 0 U t I Bl 10% 98 T]h 10% 13% RIGHTS, Pacific Gas Pub Srv N Sou Calif Edison | Dividena | annual” paymen stock ment’ dividend 1% in stock. 3% in stock rates in d tes t. *Ex n Pius 8% HE EVENING STAR, WASHINGTON Stock and Jonas & Naumburg.. Libby McNell & L. . er Ch & S (1.60)... Mid West Ut (b8%). Mo KanP L (b10%). Mo Kan P L vte..... Mont Min & A Inc., Mtg B C Am sh 2.82.. Nat American Co.... Nat Sh Tr SecA( w Brad Oil (40c) . ew Eng Pow pf (6) New Hav Clock (1).. Newmont Min (4). Ning 8h M4 (40¢). Outboard Motor B. .. Pac Western Oil Paramount Cab Mfg. Pennroad Corp Penn Wat & Pow (3) Petrol Corp war. Pilot Rad Tube A. Plymouth Of1 (2) Prince & Whitely Puget Sd P&L pt (6) Selected Indus pr pf. Shattuck Den Min. .. Shenan Corp pf (a3). South C Edpf C 1%.. Spanish & Gen rc Stand Motors. Stand Oil Ky (1%).. Starrett Corp. Swift Interna Tob Prod Exp (10¢). nit Stores Zonite Products (1). Com Edison..Feb 2 & Payable in cash_or Received by P Direct to The Star Office Bales— Rate. Add 00. Interst Hose Milix. . Interst Pow pt (7) Chute ( perpow A. perp war. . n(140).. Cup (175) Refintng. . WA, . sn (). A Lt (60c) Lan & Ex. synd son(1314) Strs (1).. vie B It (1%) d (1.60) ). 100, wr pf ( ors. .. r Mach. .. 50c) 2 2 1 4 2 4 5 1 2 5 l 1 2 8 1 1 1 0 7 4 1 1 1 1 6 " 1 . 7 6 1 1 1 1 5 . (6%).. Pow (40¢c) ines. jat A war 11 Sec Oil Corp. . m Eq wi.. Mot A. stpf1. cA(1.30). rB. 3 TisAL L. Am A (@) n (20¢) "hitely pi (8)no par 1 (50c) 01d war. . 1d xw 50¢ um Pr B.. anag..... nvest. . Field Inc. old o B T T e e L T TP U U PR P T R T TSP AP - T c-818t.. dustries. . 11 p stpd). Pt (7). nd (2 o ) t(3) T, Inc.. es (60c).. orp war tel (B)... r Fin Cp.. Can (1.40) Dt (538).. b2-35 8h) orp. ar Eiy..c.o wr A (1). .2 . 25 1 wr pf (6). m (1.60).. ot (1) Batlo iities. Yaisis Pkg pf. ) €1) . afater] 4 afeter pf. 154 upf(51). 108 100 26 8% 57 8% By 8% 4% 16% 100 84 18% 2 16% 100 2 Expire. 3 18 1 - 0B oliars based on dividend. 4 14 214 224 2 Iast_quarterly o tPartly extra. ~sPlus b Ps . -k % in stock. k Plus 10% 1n stock. & Elec. .. 2 1ll..Feb. 2 21% 21 217% 2% E 4 Al 21% | 24 in stock. Pl in stock. o SOUGHT BY BUYERS Demand Also Develops for Low- | Priced Issues on New York Market. BY CHARLES F. SPEARE. | 8pecial Dispatch to The Star NEW YORK, January 24.—The fash- jons in speculative and investment stocks today call for a low price in dollars or & high income return. This tered its attention on “blue chips” and was not at all particular about the return on its capital. One of the most striking develop- ments in the recent stock market has been the demand on brokers for lists of low-priced snares. is reflects a Te- action from a market condition where depreciation 1n dollars was greatest in the favorites of two years ago. It also indicates the caution of purchasers of stocks in the matter of limiting their commitments to issues that are now so low thgt it is reasonable to expect they will not decline much further. Advan- tage of this demand has been taken by have been made up largely of stocks sclling below $30 a share. A list of stocks from which the pres- [ ent analysis has been made was pre- | pared by a New York Stock Exchange firm. It includes 22 issues selling be- | tween $4 ana about $10 a share and 28 ! stocks whose current prices range from * laround $10 a share to $20 & share.. In | both groups comparative quotations be- | tween the high prices of 1929 and 1930 and present ones are given. These have been reduced by the writer to av- erages for the various periods for the two different sets of stocks. In the first group the average mar- ket value of the 22 issues, at their top in 1929, was $37 a share. sumably in the Spring boom, the high average was $24 a share. Today it Is $8 a share. In dropping from the high average of 1929 to that of the prescgt time, these 22 stocks have had an av- erage loss of about 80 per cent. Only 6 of the 22 stocks are now paying divi- dends. The average yield on them is 7! er cent. The most extreme changes n this list are those of Columbia hophone. which has dropped from its gn,} of 88% to about 8, and in Coty, from above 82 to the present fig- ure of around $9 a share. (Copyright. 1931.) HIGH STOC_k YIEiDS | CHICAGO LIVE STOCK MARKET | 8. several fixed trusts, whose portfolios | In 1930, pre- | CHICAGO, January 24 (#) (United States Department of Agriculture).— Cattle—Receipts, 300 head; compared week ago all killing classes largely 50 lower, but 50a1.00 under last weelu‘st high time; light yearling heifers and | other classes she stock semi-demoralized great part of week; fat cows selling as |low or lower than any time in 1930, | but week end clearance broad:; exces- | sive supply little heifers offered; dressed By the Associated Press. | market very slow, especially on cows; | meat bulls closed on a downward trend, but vealers worked 50a75 higher; stock- |ers and feeders, 25850 lower in sympa- | thy with killer steers; most fat steers, W | and few fat cows above 6.00; best light w yearling heifers. 11.00: bulk, 7.25a8.75; | meaty feeders up to 9.00. Sheep—Receipts, 3,000 head; including 1,800 direct;today’s market nominal; for week 43 doubles from feeding stations, 11,700 head direct; compared week ago all grades fat lambs and yearlings, mostly 50 cents higher; fat ewes and feeding lambs. 25 cents higher; late market. generally active; closing bulk good an‘ choice fat lambs scaling 92 pound: down, 9.00a9.35; few 9.40a9.50; latter price the week's and also season's top; ! heavier lambs, 8.75a9.00; native bucks, to m M la; | corporation.” ‘The suit was brought by Harvey Y. pr 001 | tive ewes, 3.50a4.75; weeks bulk fed | yearlings, 7.00a8.00; white faced range | feed Jambs, 7.7588.10. | Hogs—Receipts, 20,000 head, includ- | ing 18,000 direct; opened steady. later trade weak to unevenly lower: t-p, 8.25; bulk, 130-210 pounds, 8.00a8.15; 220-300- pounds, 7.20a7.75: pigs and packing sows scarce; compared with week ago, light weights steady, heavy weights 10a25 lower; shippers took 1,000: esti- mated holdovers, 2,000; light lights, | good and choice, 140-160 pounds, 8.00a | 8.25; light weights, 160-200 pounds, 7.90a8.25;: medium weights, 200-250 pounds, 7.40a8.10; heavy weights, 250- 350 pounds, 7.00a7.55; packing sows, medium and good, 275-500 pounds, 6.35a7.00; pigs, good and choice, 100- | 130 pounds, 7.504 5. the im asl fir to BALTIMORE STOCKS. ial Dispatch to The S BALTIMORE, Januar: lex 8TOCI 200 Baltimere Trust 10C & P Telephon Lo Pa Y 24 i Last sale. Zu Co . . e Balto pfd 5, Bl I REMOVAL OF WARD have been filled in the Circuit Court | nere asking the removal from office of eers ‘Rnlpg S. Kent and William . Evans ith “the market styles most | 8.50a10.50; extreme top yearlings, 13.50: | president and chairman of the boar o iar n 1620, when the public cen- | neavies, 13.10; few steers above 12,00 | of directors, respectively, of both the | the removal from office of nine direc- | baking company, incorporated under the clares the company is completely dominated by the holding Breidenbach, who holds 20 shares of 28.35; throwouts, 6.50a750; fat na- | George B. Smith of New York filed & = ringing action. Smith holds 5 stock in the corporation. operated an year, according to the action, the com- pany netted only $485,000, or a loss of 73 per cent in com earnings for the same period of | (@uotations turnigh 3 ome, DIRECTORS SOUGHT ockholder Charges Mismanage- | ment Has Occurred in Baking Company’s Affairs. BALTIMORE, January 34.—Papers | ard _Baking Co ration and the | ard Baking Co. Ti action also seeks | rs of the corporation. ent is alleged. ‘The corporation, organized under the aryland laws, is a holding unit for the Mismanage- ws of New York State. The suit de- “entirely and eferred stock the corporation. tition to join with Breidenbach in ‘The petition asserts 0 shares of preferred In addition to the removals asked on e ground that the concerns have been in a “careless, wasteful and nprovident” manner, the proceedings k that the officers and directors make | accounting of $1,335,000 of the ‘m's money alleged to have been used buy outstanding stock. During the first six months of last with the 1929. FOREIGN EXCHANGE. ed by W. B Hibbs & Co.) ominal gold Selling checks today. $4.8500 3siitc 13.84c 23764 ndon, ris pound franc. .. sels. be inark. Hpa.: .o franc urich, D. C, SATURDAY, TAX N HONIPA UTLITES PLANKED Oregon Governor Has Pro- posed Levy on Publicly- Owned Enterprises. BY GEORGE E. DOYING. From the capital of Oregon comes a proposal that is looked upon here as a move to nullify one of the strongest arguments of the public utility interests against public ownership. This is the plan just submitted by Julius L. Meler, newly inducted Governor of Oregon, that publicly owned utilities should be taxed on the same basis as those pri- L y | vately owned. Whenever the subject of municipal ownership is being argued, the oppo- nents invariably dwell at some length upon the large sums paid in taxes by privately owned utilities as compared with no taxes on municipal plants. This argument has proved particularly ef- fective in cases where it was proposed to acquire for a city the property of & private concern, in which event tax- ation would cease and the public treas- ury thereby be depleted. Question of Rates. Of course, the municipal ownership advocates point to the prospective lower rates to consumers as being adequate compensation for this loss, but the answer to this has been that this saving, if any, goes only to the con- sumers, whereas the tax loss is suffered vocate of publicly owned utilities and State development of water-power re- sources, it is not his policy to exempt them from taxation. “‘Were the districts within which the development occurs the only jurisdiction to be considered,” he said, “the exemp- tion would be of no great concern. But it must be borne in mind that such districts, municipal or otherwise, are parts of wider jurisdictions and that such exemptions would throw an in- urden of taxation on citizens gwpnw:lpgun( in the benefits of the ce. ““To subject such properties and de- velopments, whether private or publie, to’ the same general rate of taxation would mean that a part of the advan- tage that sprin m hydroelectric development would accrue generally to the people of Oregon.” Bill Introduced. In the State of Washington & bill has already been introduced in the Legislature to carry out this idea, al- though the proposal is in different form. This measure would levy a tax of 5 per cent of gross earnings upon any electric light and power system, gas lighting and heating system, water sys- tem, street railway or other transpor- tation system, golf course, auditorium or port facilities owned or operated by any city, town. port or water district in the State. The measure states that the tax shall be paid by every munici- pal_corporation “for the privilege of exercising its franchise, right or au- thority to own or operate each utility.” (Copyrixht, 1931.) Markets at a Glance NEW YORK, January 24 () —Stocks irregular; motor and accessory shares rise. Bonds firm; active issues narrow- ly higher. Curb irregular; utilities heavy. Foreign exchanges 'irregular; sterling and French franc higher. Cot- ton lower; Southern selling. Sugar easy; European selling. Coffee lower; trade selling. GRAIN MARKET CHICAGO, January 24 (Special).— The wheat market was easier today under scattered selling and an absence of buying power. The market ignored the better tone in Liverpool. March, old opened 7912 to 79%; new, 791;; May, old, 8113 to 81%; new, 82% to 82%; Y After first half hour new, 79%; May, old, July, 64%. Corn was weak under continued liquidation. March old opened 64} to ew, 645 ; May, old, 66, to 661 ; to 66%: July, 6732 to 67% After first half hour March, old, 64 new, 64%; May, old, 66%; new, 667%; July, 67%%. Provisions were Oats were easier. | lower, CHICAGO ST(.)CK MARKET By the Associated Press, CHICAGO, January 24.—Following is the complete official list of transactions in stocks on the Chicago Stock Ex- change today: BTOCKS High. Low. Close. N i ub Ser pf 100 Cent il ‘Sec ....... 400 Cent Pub Serv ‘Al 1150 Cent & Bo West .. . 50 Cent States Util 'pf 100 Chic Investors ..... 4300 Cities Service .. 725 Comwlh e o o EEse e MeNelil " 50 Lindsay Likht 38500 Majestic House 150 Marks Bros ... 1200 Marshall Field .. 50 Super-Mala ift & Co 50 Swit A terrier and .a duck at Arkley, Eng« land, have become chums. JANLARY 24, , | be listed on the Stock Exchange. 1931. FINANCIAL. SIGNS OF TRADE RECOVERY OBSERVED BY OWEN D. YOUNG Business Si tuation More Sensitive to Im- provement, He Believes—Whitney Explains Exchange’s Influence. Special Dispatch to The Star. NEW YORK, January 24.—Owen D. Young, addressing members of the New York State Bankers' Assoclation, which held its Midwinter business conference at the Federal Reserve Bank, said there were signs that the business situation had reached a point where it could be regarded as more sensitive to improve- ment. For some time, he said, conditions have been in a sort of “dead center” be- tween overproduction and reluctance on the part of the consuming public to He pointed out that there inevi- tably comes a time when the needs of the public become imperative and he was hopeful that improvement along this line would soon be manifest. Part played by the New York Stock Exchange in American business life was dent of the Exchange, in an address de- livered at a banquet of the New York State Bankers' Association, holdling its Midwinter conference here. Mr. Whit- ney also spoke of the close contacts that have grown up between the banks and the security markets. Even the farmer is dependent, upon and benefits from the development and operation of the security market, Mr. Whitney stated, explaining that he benefits from the capital supplied to the raflroads and to manufacturers who sell to him and buy from him. Market Reflects Conditions. Referring to the business depression, he said “we all know depressions do not last forever” and added that the effort made on all sides to maintain employ- ment “will inevitably make its weight felt in maintaining consumption.” Mr. Whitney concluded with an ex- pression of belief that the stock mar- ket closely reflects business conditions. It “constitutes a supreme single expres- sion of modern economic life,” he said. “The many contacts which the Btock Exchange possesses with the different as) of American economic life are seldom sald. ‘‘When we turn from the ultimate buy- ers and holders to the original sellers of securities, another wide sphere of rela- tlonships between the Stock Exchange and American business is discovered. The stock market is naturally of tre- mendous consequence in the ceaseless task of supplying new capital for the permanent use of American commerce and industry. In this work, the com- mercial banks of course participate. But the primary burden falls on the invest- men! bankers, whose special task it is to distribute securities. The invest- ment banker frequently has resort to the organized security market in this work, and by listing new security issues there obtains for them a distribution to in- vestors throughout the land. “In this way the New York Stock Exchange, with its vast network of quotation wires furnishin ourrent prices to the furthermost points in the country, and the similar network of private brokerage lines connecting even small communities with the New York financial center, provides a regular ma- chinery for facilitating the flow of the Nation's capital into productive in- dustry. When the modern corporation issues ‘rights to subscribe’ to additional shares, this mechanism suffices in most cases to bring the matter to public af tention and to distribute the new se- curities. ~With new security issues, however, banking sponsorship is prac- tically always necessary. Yet, year after year, the stock markets where such issues are listed form an in- dispensable task in slowly season! the issues and thus them suitable for the permanent security investor. Financing of Industries Abroad. “The international shifting of listed securities also has at times an impor- tant effect upon both American in- vestors and American industry. Years ago, very securities were held by foreign powers. At one time, for example, a5 much as 70 per cent of New York Central stock was registered in London. Such for- eign holdings of our security issues have long since n largely repurchased by American investors, and thus reab- sorbed through the American security markets. Just as American industry years ago benefited very greatly from the entry of its securities on the for- eign stock exchanges, so more recently the New York Stock Exchange has not |only helped to repatriate American | stocks and bonds, but also to assist in the financing of industries abroad by listing foreign securities. “So intimate have the relations be- iween the security market and our major industries always been, that one might easily trace the vast development and constant changes in American business over the past century, merely by studying the price sheets of the New York Stock Exchange. Originated in the specific effort to market the United States Government debt and the shares of New York banks and in- surance companies, the New York stock market has for over a century per- formed similar services for the securi- ties of our vast modern railways sys- tem, for our great extractive industries in coal, oil and the whole range of metals, and also for our extensive public utility, manufacturing and commercial lines of business. 1In recent years a process of what we might call ‘mass investment’ has been required to finance the heavier and heavier mechanical re- quirements of mass production, and al most all of the producing interests of the country have resorted to the stock market to obtain the new capital which progress and new invention have so continually necessitated. How Farmer Benefits. “Almost alone among American pro- ducers. the farmer has rarely incorpo- rated his business, but has continued to conduct it as an individual. Thus there have never been share issues represent- ing agricultural production of sufficlent size for public distribution. The stock market has therefore been unable to as- 3 |sist the financing of agricultural pro- duction in the same way that is has with other industries. If such agricul- tural securities existed, there is, of course, no reason why_they could not Fre- quently the distributors of farm prod- ticts have incorporated and their bonds {and shares have long been listed_and dealt in upon the exchange. Such \listed issues as Armour or National SATURDAY, described oy Richard Whitney, presi-| large amounts of American | Dairy Products are examples familiar to every one. It has been remarked that, financially speaking, the farmer needs more partners and fewer creditors. If shares which represented his indis- pensable work as an agricultural pro- ducer could be created, they might prove highly beneficial in farm financing. “Nevertheless, the farmer has derived very great indirect benefits from the development and operation of stock ex: changes. In marketing his produce the farmer is, after all, just as dependent upon efficient means of transportation as the miner or the mnuruutuu'r. ndispensable part the Ameri part, the American would of necessity be forced into a con- dition of life closely resembling that of the peasant class abroad. It must also be realized that the American farmer of today has, like many other producers in the country, adopted labor-saving machinery of many sorts. “Today he employs machines to shell and grind his corn, to harrow his land, to reap, shock and thresh his wheat, to cut silage and to hoist hay. On the dairy farm he uses milking machines, separators and other such devices. The automobile, the motor truck and the tractor have everywhere been pressed into his service. In the past few years the extension of our electric utility sys- tems has likewise begun to place com- mercial power at the farmer’s disposal. Thus, the American farmer of today has become in reality an agricultural engineer, employing machines and la- bor-saving devices of all sorts and need- ing such raw materials as chemical fertilizers, petroleum and other fuels and electric power. It is characteristic | of the progressive attitude of our farm- ers that they utilize the radio to keep themselves in touch with weathe: re- ports and with the markets and prices for their produce. “If the facilities of the security mar- ket on the Stock Exchange have assisted machinery manufacturers of this coun- to obtain capital needed in the work mass production, they have resulted indirectly also' in providing many fa- cilities for the farmer as well as the city dweller. This is one very important reason why life on even the small farms in this country more closely re- sembles life in our great cities than in any other country in the world. Our Standard of Living. ‘The material test of any society is, after all, how far it can create wealth, and how broadly it can share it among every one. American business men have |long and rightly considered a high standard of living in this country to be the supreme general aim. It may seem somewhat out of place to speak of high standards of living in the face of wide- spread unemployment. But we must remember that even recently the standard of living in the United States is actually much higher than that which has ever prevailed in any other coun- try, even at the height of prosperity. “‘Moreover, we all know perfectly well | that depressions do not last forever, |and that the halt of a few months | should not discourage us concerning an | improvement in American tandards of |living which has gone on steadily for a century. In the present depression, a splendid effort has been made by al- most e one to maintain employ- ment, and this effort—so new a factor in the business cycle—will inevitably make its weight felt in maintaining consumption. Stock Market a Mirror. “There has been much controversy recently as to whether the stock mar- ket does or does not forecast business conditions. But the public, with & sure instinct for practical truth, has little doubt that it closely reflects them. The interest which the American public has shown in stock market prices cannot, therefore, be attributed simply to a desire for speculative profits. For the market on the Stock Exchange holds up a mirror where mnumpon7 American civilization may view itself. Not a significant business development, nor an important happening, but what is speedily reflected in its sensitive surface. “Sometimes * the stock market is spoken of as if it were all bottled up in a building in Wall street. Actually it is a creation of the whole American people, and it responds to those strong | human motives of hope and fear which | sweep through American public opin- ion. The course of its prices cannot be exgrmed in any single formula. They reflect not only the trend of business affairs here and abroad and the deci- sions of forelgn chancellories, the as- surance of peace and the shadow of war, the existing statistics of trade and the changes in legislation here and abroad by which the modern world is governed. Ramifying in all directions into the daily lives of countless creators, dealers and holders of securities, the stock market constitutes a supreme | life. It is a living, pulsating mechan- everywhere stadily pass into a practical effort to realize the dreams of science, invention and national well-being.” ADVANCE IN RAILROAD Special Dispatch to The Star. NEW YORK, January 24.—The av- erage of railroad stocks today approxi- mated the high of two wecks ago, when the general market reached its best level of the mon after an upward swing at the end of December. The consistent strength in the rails has been one of the unexpected and significant features of the entire mar- ket performance. It has been aided by the replacement of stocks which were sold by individuals and institu- tions late last year, in spite of the fact that current earnings continue poor and are not likely to show much change for the better during the Winter or early Spring. Eastern rails are still being benefited by the proposed con- solidation and those in the West and Southwest by preliminary figures for 1930, which will indicate that their dividends were covered in spite of the heaviest decline in net earnings in a decade. STOCK AND BOND AVERAGES By the Associated Press. JANUARY 24. STOCKS. 50 Industrials. 124, Month 2go. Year ago. Two years Three yea High, 193 1. Low, 1930-31. High, 10 Industrials. . 902 Two years ago.. Three years ago. ism by which the savings of the thrifty | S!t¥ STOCKS WELL SUSTAINED | * A3 ITREASURY FINANCE PLANSAREWATCHED Bond Dealers Anxious to Learn Form of Refunding Operations. Special Dispatch to The Star. NEW YORK, January 24.—Dealers in United States Government obliga=- tions are now discussing the probable terms and form of the Treasury fi- nancing which will anticipate the ma- turity in March of the $'s' per cent notes called for payment in that month. ‘The big question i8 whether Secretary Mellon and his advisers will deem it wise to continue a program of short- term issues, which has been held to for a number of years, or embark on a policy of long-term financing under the present favorable and almost un- precedented conditions in the money market. So great has been the demand for Government securities and so low have been interest rates that today the United States liberty loan 31s are sell- ing to yield less than 2 per cent and the fourth 4% liberties below 23; per cent. The long-term Treasury certifi- cates have not been so popular recently, because of their far-away maturities and also on account of their high pre- miums. Therefore, they are quoted at an average slightly under 3!4 per cent. In contrast, the shortest of the United States Treasury notes, or those falling due next June, are being priced to yleld slightly over 1 per cent and the Sep- tember and December maturities be- tween 1.30 and 1.55 per cent. Major Operations. The major refunding operations fac- ing the Treasury are those of the fi liberty loan, amounting to $1.933.000,000 and callable in June, 1932, and $6,268,- 000,000 of the fourth liberty 4148, which m{ be taken up at the Government's option in October, 1933. The absolute maturity of both loans is in 1947. It is ed that the optional provision in instances will be dealt with and that the condition of it & lower average of interest rates on these Government loans. It is the feel- ing amq Government ong n bwsxds that the Treasury could sell a large amount of long-term bonds on t‘lpcroembuh that this will be a pted. The bill sponsored by Secretary Mel- lon recommending an increase of $8,- 000,000,000 in the authorized amount under the second liberty loan act, has Jjust passed the Ways and Mean: mittee of the House of Representatives. - This is the first step to be taken in connection with the proposed refund- ing operations. The increase approxi- mates the amount of the firgt and fourth liberty loans that may be called in 1932 and in 1933. It is expected that Congress will eventually approve the measure. One of the main er- ences of opinion regarding it has to do with the effort to make the additional bonds tax free. The argument for this is that United States Government obli- gations should be on a parity as to tax features with those of munici- palities. Tax Exemption. Precedent for the action is to be found in act of Congress in 1929, which {;zs full tax exemption to short-term asury bills. This was later expanded when exemption was granted to cer- tificates of indebtedness. In June, 1930, any profit that accrued from the sale of lls was made exempt from normal and surtaxes. The argument of the Government officials is that a fully tax-free Treas- ury obligation could be marketed at a higher rate and with a lower coupon than those which now only have ited exemption, and that in this way, the Government debt service would be materially reduced. Recently the Com- mercial and Financial Chronicle has taken issue with this theory and has pointed out that, owing to exemption from the present taxes, the. Govern- ment would stand to lose no less than $60,000,000 a year in revenues from taxes. There has never been a time since the great war debt of the United States was created when conditions favored the issuance of as low coupon rate long- term Government bonds as now. Con- sequently, there is very little doubt as to the desirability of ending the short- term Treasury note and Treasury cer- tificate emissions and putting Govern- ment finances on a long-term basis. The question of whether these issues are to be partially or completely tax exempt is incidental to the major proposition that must be adopted within a comparatively few months. (Copyright, 1931.) NEW YORK BANK STOCKS NEW YORK, January 24 (#).—Over=- the-counter market: Bid. Asked. America o . o Bk of U S units. single_expression of modern economic | Chase 903 1023 2500 n Natl. TRUST COMPANIES. Bankers ........ arrima Proples Corn Exchange . County . Guaranty in 1ng Manufacturers . New YOrk....... United States Westchester Tit Four Rooms, Kitchen and Bath Electrical Refrigeration THE ARGONNE 16th and Columbia Road Reasonable Rentals Our low prices are for cash deli only. W. A. Egg..$14.60 W. A. Stove, $15.30 W. A. Nut..$14.75 W. A. Pea...$1040 Buckwheat. . $8.10 Coke .......$10.75 Fairmont Egg, $8.25 New River Egg, $11.00 Also 11 kindiing coals are screen B. J. WERNER 1937 Fifth St. N.E. North 0079 Just Think of It— ‘The Star delivered to your