Evening Star Newspaper, March 24, 1931, Page 12

SERIAL BUILDING ASSOCIATION 7th St. and La. Ave. N.W. - 65th ‘Issue of Steck Now Open . hrlublefl'fiv:' Money loaned to members on easy monthly payments James E. Connelly James F. Shea President Secretary & srrciaL’ @ EASTER HOLIDAY TRIPS At Practieally HALF PRICE 16 - DAY - LIMIT ROUND TRIP TICKETS SOLD ON AP) AND_4 PROM WASHINGTON TO ANY POINT IN THE SOUTH EAST, INCLUDING CHARLESTO! SAVANNAH, AUGUSTA, FLORID, ATLANTIC COAST LINE MASIL D.P.A. TEL. NAT. 7835, ST. N.W., WASHINGTON, D. C. Towels and Toilet Tissues Prevent Contagious Diseases Spread- Factories and Homes Subscribe Today It costs cnly about 1% cents per day and 5 cents Sundays to have Washington’s best newspa- per delivered to you regularly every evening and Sunday morn- Telephone National 5000 and the delivery will start immedi- ately. The Route Agent will col- lect at the end of each month. 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BAYERSON OIL WORKS COLUMBIA 5228 Try Autocrat ithe next time you need oil, and judge its advantages for ROACH DEATH HEADACHE? Headaches, whether from scomach, merves, periodic cause, eating or drinking, cas be relieved in few minutes by Capu- dioe, the new prescription in liquid form. Works in one-third the time usually re quired by other forms. Try it for Sick Headaches Two teaspoonfuls of Capudine 1s sure to re- lieve the most stubbora “sick” headache in short order. Women'sHeadaches No dope or harmful drugs in Capudine to dis- turb normal functions. Safe and quick relief from headaches during periods. ““Moming- After” Headaches No need to go through the day with & “hang- over” 'headache, wheo dine will end pain and brace youupina jiffy, Make This Testl.. Next time have a headache w© drug u?r: and gee a bortle of Epu- ‘u. or take a dose at the soda fountain. Thea time the action. Note bow quickly in disappears a0d you “pep” right up, m‘k. 30c, 60c bottles, or by the dose as drug store soda fountains. HICKS a»fl GROUP INSURANCE New Form of Protection Is Factor in Promoting Per- sonal Policy Sales. » BY J. C. ROYLE. A tremendous field for individual en- deavor by insurance men through the country has been opened this month. This has resulted from the startling in- crease in the group nsurance fleld, which has been led by General Motors. The big motor manufacturing company added to its already - record-breaking group life insurance policy, which totaled previously $347.471,000 on th: lives of 160,000 employes, & policy which coveted 19,235 dealers and their employes, totaling 150,000 individuals in all. Each one of these recently in- sursd men may secure & minimum pro- tection of $2,000. Life insurance ip general in recent months has shown a decline in most of its departments, but there has been A startling * gain _exhibited in the amount of group insurance taken out. This can be attributed to a mutual de- sire on the part of employers and em- ployes to safeguard the future of the familles of ths workers of this country. Strong Promotion Factor. In addition to providing this protec- tion, the gain in group insurance ha: opened a wide fleld for the individual insurance agent whose business, as a result in the next nine months, can be expected to show material gains. This insurance by wholesale, it has been found, does not diminish the retail sales of lifo insurance by individual agents. In fact, it gives an avenue of approach such as they have never had previously in the history of the busi- ness. Group insurance has proved to be a strong factor of promoting the sale of other lines of personal insurance through a development of appreciation of insurance protection and the fact that the amounts which may be se- cured under the group plan are neces- sarily limited. Group insurance, in addition, has become a stable factor in the lessening of labor turnover, accord- ing to many Jlevel-headed business ex- ecutives. The truth of these state- ments is borne out by a declaration of J. H. Birkett, assistant secretary of the Prudential Insurance Co. of America. i Mr. Birkett says: “Reviews have been made & number of times of claims paid under group contracts to ascertain what other insurance, if any, was in force on the life. These studies show 40 per cent with no other life insurance. In many of the remaining cases there was only a small amount of weskly premium insurance, or about sufficient to cover burial expenses. . It is evident that group insurance is not taking the place of other forms, but is remedying the ex- isting situation of inadequate insurance among wage earners, “The contacts mdde through the group insurance transactions lead to'the plac- ing of individual ordinary policies, and the movement as a whole is educating employes to think of life insurance in terms of larger amounts. . - Featurés of Contract. : “Why is it that an individual appli- cant must pass medical examination, while this is not required for a group? “The law requires that at least 75 per cent of all who are eligible must apply before the froup contract can be issued. In actual practice the enrol- 1 ment nearly ays exceeds 90 per cent. All of those insured are at least able to be at work, and experience shows that the mortality in such a group will be about the same normally expected be- cause individual selection adverse to the company has bzen eliminated. “If an individual applies for & whole life policy—that is to say, & policy with a level premium which will not be in- creased in the future—we have got to consider, in fixing the emount of such premium, that the claim rate will in- ith each year of age, and in the claims slone may call more than the premium. In the earlier years the fixed premium will be more | than, needed, for the claims will' be light, and a large portion of the pre- mium is therefore laid by or reserved to meet the 4ncreases in. later These legal reserves are the chief items in the billions of dollars held by the insurance eompanies as their assets. “Group insurance is based upon the prineiple that while the age and mor- tality rate for an individual increases the average age for a group of employes may remain approximately the same because those stantly ampflm. out and being replaced by younger lives. For this reason there is not the need for & reserve and it is practical to issue a one-year renewable term policy. This saving of the reserve factor, coupled with a marked saving in expenses, - accounts for the lower schedule of premiums charged the em- ployer. In turn, the contribution rate set for the employes is still Jower, be- cause the concern usually puts im a good share of the premium payable to the insurance company.” (Copyright, 1931) ' . ANTI-DUMPING ORDER. By the Associated Press. Secretary Mellon yesterday signed an anti-dumping order against the impor- tation of matches from Pinland, Nor- way, Esthonia, Sweden, Latvia, Austria, Holland and Poland. The edict is ef- fective immediately. Under the regulation the duty will be the difference between what is consid- ered a fair price for matches by the Treasury Department and the price at which the product is dumped in the United Stats Guaranteeing The Trade Mark Satisfaction IMIANY an hour is lost in shop- ping. How often you need an article and guess wildly as to where it may be obtained? If it's the unusual in-Office Equipment _ call National 9. Here you will find in stock all of the usual lines of Office Equipment and in addition such items as— Storage Cabinets Typewriter Stands Perpetual Calendars Telephone Book Covers Budget Books - Desks, Chairs, Ete. ‘We're Rightly Called the Business Man's Department S AL K., &'A la l‘N‘é‘l’ON-D'G tore for | life. | at the older age are con-| THE EVENING STAR, WASHINGTON, TARIFF REDUCTION IS URGED AS CURE FOR TRADE RECESSION SHflws BIG GAlNS Economislt Believes Stimulus to Foreign Business Would Follow Revision of Pres- ent Schedules—Reviews Situation. “We are in the midst of a severe) business depression, which is world- | wide. The most serious obstacle in the | way of early recovery is the state of our foreign trade. The most serious obstacle in the way of the revival of | our foreign trade is our high protective tariffs. The quickest way to get out of the existing depression is to reduce our tariffs so that our foreign custcmers may sell more goods here and get more doliars with which to pay interest upon their debts to us and with which to buy our goods. If we do not buy we cannot sell. If we don ot buy enough we cannot sell enough,” said Benjamin | M. Anderson, Jjr. economist of the | Chase National Bank, recently in an clation at Philadelphia. follows mn part: “Bankers and economists have been The address World War. But the country has been | slow in learning the lesson. The propo- did not seem to bear it out. and_early 1920, without selling very | much to us. She bought without limit of price or quantity as long as we | would give her credit. And then, sud- | denly, we awoke to the fact that Europe had overbought on credit, that she had | bought recklessly end irresponsibly, that, as a result, foreign currencies in our ‘markets were dropping rapidly to very great discounts, that our mer- chants and our mgnufacturers, who | were selling to Europe on credit, were | themselves in debt because they were | unable to collect their debts in Europe, and our seeming prosperity of 1919 and early 1920 passed quickly into the great | crisis of 1920-21. | Foreign Trade on Credit. | “We learned no lesson from this. Instead we raised the tariff in 1922 And again the higher tariffs, for a time, | seemed to impose no restraint upon our | exports. Our exports even grew. And | for six and a half years after 1922 our export trade held well and even in- creased in volume. Fcr another six and a half years we s0ld in large volume to the outside world without buying in adequate volume from the outside world. But once more we were doing it on credit. A very unusual situaticn in the money market, due to the fact that we almost alone of the countries of the world, were on the gold standard, and that all the free gold of the world wasy flowing to us, made it possible for us to expand credit on a great scale, and made it possible for us to take foreign bonds on a great scale. We sent goods to the outside world ann in exchange the outside world sent us paper promises to pay in the future. Then the gold situation changed in 1927-28, and the money market situation changed in the United States. Our ability to take foreing bonds was suddenly greatly re- duced, and out appetite for foreign bonds was greatly diminished. Begin- ning in the latter part of 1929, the ability of the outside world to buy from us sharply and violently diminished. “This time, we were not faced with reckless and irresponsible buying on the part of Europe. In 1919 and 1920 Eu- rope was on the paper money standard, and lacked the restraints, the restric- tions, which the gold standard imposes. “Today, Europe is on the gold stand- ard and determined to stay there. The gold standard imposes sharp limitations on the creation of debts. The gold standard makes debtors responsible and makes them feel responsible in a way that they do not feel when the printing press works freely and all difficulties can temporarily be solved by printing additional paper money. “Europe is very responsible now, and the outside world in general is very re- sponsible. ~ Having a . limited supply of dollars, they conserve their dollars. They use their dollars, first, for the most urgent purposes. The most ur- | gent purpose is the payment of interest and amortization upon debt previously | created—they have been busy borrow- ing, and we have been busy lending for the past decade, and, for that matter, |since 1914. The debt of the outside { world to the United States is very great. land the interest charge, that first charge upon their limited supply of dol- lars, is very great. Only what they have Jeft after paying debt service here {can they use in buying our goods. Unbalanced Production. “That is not enough to enable us to export enough of our surplus products to keep our export interests in good shape. We are, therefore, in an un- | balanced business conditi Lacking satisfactory export markets, we have 00 large a proportion of our labor, capital, and land geared up and equipped for producing goods for export, and, unless | we can improve our export markets, we must shift a very substantial proportion iof our activities from producing for ex- port to producing for the domestic markets. “Given time, and given sound money, security of property, and the enforce- ment of contracts, private enterprise will adjust itself to almost anything. No government can pian and direct the economic life of millions of people. Economic life goes on, and economic re- adjustments are made, as individual en- terprises study their peculiar problems, expanding here, contracting there, get- ting out of lines, where returns are low, INVESTMENT SECURITIES and Stock: Excellent estment T COURTLAND = NIXON 1518 K St N.W. National 1926 B fioney to Loan Shoreham Building Comfort in Business HY isn't it of equal importance to sur- round yourself with com- fortable offices as a com- fortable home? That's the idea in mind of the designers of the Shore- ham Building— to plan and equip, so that not only the highest effi- ciency should be attain- ed, but the utmost in practical comfort — and in the successful accom- plishing of which Shore- ham Building. service is a contributing factor. Inquiry and Inspection Welcomed. MSKEEVER &GOS 1. el e Rental Office, Room 520 15th at H National 5643 and getting into lines where returns are better. Taking time enough, we can fnally readjust ourselves, and the rest of the world can Teadjust itself, to this tariff situation. We can curtail agricul- tural production, we can abandon farms, and farmers can move to the cities and find new ways of making a living. We |can reduce the production of automo- biles, of copper, of oll, of cotton, of agri- cultural machinery, and other impor- tant export lines. ‘We can crowd more of our population into those lines en- gaged in producing for the domestic market, But this is a slow process, and a painful process, and an unnecessary process. We can cut through and can | make this readjustment unnecessary if |1y, make this plea, saying that while address before the Foreign Policy Asso- |we can restore our foreign trade, and | they would gladly go into a general| we can do that by lowering the tariffs. “From many parts of the world com- laints come of surpluses of goods. The telling the country this ever since the | cry of overproduction comes to us at.a |jand and Sweden, two of the small| time when, all over the world, produc- | tion is sharply lowered from what it sition was made in 1919, and the fact | was a year or two ago. There is talk of | tries of the world, do not feel this, and Europe | overproduction of grain and live stock. | do not believe #. Through all the na- bought from us on a vast scale in 1919 | And certainly we have more of these | tionalistic struggies and competitions of basic foods in the United States than our people can consume. But there are many in Europe eating black bread who would gladly eat white bread if they could afford it, and there are many in Europe eating meat once a week who would gladly eat meat three, four or five times a week if they could afford it. They cannot afford it because their hands. are tied by lack of markets for the fine products which they turn out with limited tools and machinery. But with an abundance of skilled hand work, they make fine things which we cannot make so well in this country, because labor is relatively scarce and high priced for us, and we use our labor eco- nomically for mass production in com- bination with great masses of machin- ery and equipment, or in combination with our broad acres of land. A sur- plus and glut of agricultural products exist here, and a surplus and glut of fine, artistic manufactures in Europe— D. C, TUESDAY. or a surplus capacity to produce fine manufactures. But if the tariffs were lowered, these gluts would disappear. cee X Tariff Not Only Factor. “The tariff does not tell the whole story of our great depression, of course. If there were time, I should like to dis- cuss other contributing causes, especially the resistance to price and wage read- justments, the maladjustments in the money and capital markets, and the difficult situation which governments and gréat industrial combinations have created in the efforts to maintain arti- ficial prices for a multitude of com- modities, as coffee, copper, rubber, cot- ton and wheat. The wheat situation especially has become incredibly diffi- cult. Our own Government stepped | into & situation in 1929 which govern- ments and pools in other countries had already made impossible. Lowering the tariffis will not correct all the evils which come from all these causes. But it would help enormously, even in this very difficult wheat situation. * * * We Can Act Alone. There are those who would say that it is well enough to reduce the tariffs, if all countries will do it, but that no country can do it alone. And many of the small countries of Europe, especial- | world movement and would gladly fol-| | low the lead of some great country, they| | alone cannot venture to do it, But Hol- countries of the world, and two of the | most. intelligent_and enlightened coun- the post-war period, they have quietly | adhered to their policy of admitting for- | eign goods without unreasonable re-| straints, and they are today eminently | satisfied with the results of their policy. | | Their economic difficulties today are less| acute than those of most other coun-| tries. While many of the countries of Europe were building higher and higher walls to keep out foreign grain, Den- mark quietly bought all the grain that MARCH 24, 1931. fon that the lowering of our own 'Aflfll} without reference to what the rest of the world may do, would be sufficient to cut through quickly the worst of our difficuities. I believe that many other countries would follow us in this. Those that did not reduce tariffs would fail to share the expanding world trade to the same extent as those that did. But we ourselves would promptly get into the hands of foreign customers a larger vol- ume of the dollars which they need to buy our goods, and our export trade would make a very prompt response. Tariff and Standard of Living. ‘There are those who fear the lower- ing of the tariffs because they believe that the American standard of life is de- pendent upon the tariffs, and particu- larly because they believe that high ariffs make high wages. This doctrine has very little standing among econo-| mists. Wages do not depend upon tariff, and standards of life do not de- pend upon tariff. Wages depend upon the productivity of labor per man, and | the productivity of labor per man de- pends, other hings equal, upon the abundance or scarcity of the land and capital with which labor works. The country which has a comparative abundance of land and capital and a comparative scarcity of labor will have high wages, as is true of the United States. In a country like China, where men are abundant, capital scarce, and land scarce, land rents will be very high, interest rates will be very low, tariffs or | no tariffs. American labor is high, in comparison with ', be- cause land and capital are relatively scarce, whereas in ; Jand and capital are relatively sca: and labor relatively abundant. . The great rise in wages in the United States_since the pre-war days has not been due to the tariff. We had high tariffs before the war. 'The greatest factor in the rise of has been the restrictions of immigration—first, those imposed by the war itself by the mili- tary situation, and, second, those im- legislation after the war, American labor has nothing to fear and everything to gain. by and large, from a lowering of tariffs in the United States, ¢ ¢ ¢ Moderate Tariffs, Not Free Trade. I have said almost nothing that would have had a bearing on the political controversies regarding the tariff, as we used to hear the matter discussed in the tranquil pre-war days when the world was in balance. I have said nothing about the prices which Amer- ican consumers must pay for goods as a result of the tariffs, I am prepared to concede that protective tariffs had their beneficial side in earlier periods of our history, that they developed our | manufactures sooner than they would otherwise have been developed, that they hastened the growth of our cities, draw- ing in population from country to_city faster than it would otherwise have come, they that hélped in making our Bank Executive Available In Prime of Life Many years’ residence in Washington and fine record of accomplishment in New York and New England, now wishes to return to Washington. Would purchase stock or accept satisfactory salary. any one chose to send her, at low prices, using it to fatten pigs from which to | | make the very superior Danish pork products, particularly bacon, which she sold at good profits. | | Our tariffs were too high in 1929. We | hould have lowered them. Instead we alsed them. Many foreign countries | rapidly responded by raising their tariffs in retaliation. There are those who are | hopeless about the matter, because they say that no country can act alone. I| wish to express here the confident opin- | This man has a remarkable record for bank building. If your bank is standing still or going back or if you need a high class bank executive you should consult this Address Box 67-Z., Star Office cities by making our profitable and our city life able. 1 | the necessity of a a further drift of Uy to city, a fu abandonment_ of farms. I propose s reduction in the tariff not the interest of readjust- ment and change, but in the interest of stability. Several farm relief measures were in- ugurated recently in_Czechoslovakia. ‘ Associated Gas and Electric Company Dividead No. 25 on Class A Steck The Board of Directors has declared the regular quarterly | dividend on the Class A Stock | " ., of b0c per share payable May 1. 1931, in Class A Stock at the rate of 1/50th of one share of Class A Stoek, or, at the holder’s option, in $5 Dividend Ser; Pre- ferred Stock at the rate of 1/140th of one share of said Preferred Stock, for each share of Class A Stock held of record at the close of business March 31, 1931, Payment in Class A Stock will be ‘made, ¥ all stockholders entitled thereto who do mot, on or before April 10, 1931, request payment in cash or Preferred Stoek. This doss not apply to those who have fare filed permanent dividend crders. Dividend Ne. 2 on Cumulative Preference Steck [t Dlvfl-‘| Series) The Board of Directors also declarea regular quarterly dividend on the imulative Preference Stock ($4 Dividend Beries) of $1 per share or 1/70th of a share of $5 Dividens Brock, M record 31, 1931, Payment in $5 Dividend Series Preferred Btock will be made to all holders of Cumu- lative Preference Stock who do not, on er Before April 10, 1931, request payment in cash. Serip for fractional shares of Claw A Btock or $5 Dividend Series Preferred Btock will not be delivered, but will be eredited to the stockholder’ ® full share has accumnlated. may purchase sufficient additional serip W esmplete full shares. M. C. O'KEEFFE, Secretary. Maweh 34, 1931 a [ ] =il NI = . ] Like Color . . . the best Gasoline is Blended HE artist stands Before his canvas with color-laden palette. Blues, greens, white and touches of warmer tones are blended by his inspired brush as the waves of the seascape take form. 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