Evening Star Newspaper, March 26, 1931, Page 12

them past other cars.. PHONE YOUR DEALER TODAY . .. o s . - L. P. STEUART, Inc. New Car Department Service Department 1401 14th St. N.W.| | 1119 21st St. N.W. H. R. King Motor Co. 514 H St. N.E., Washington, D. C. Prince Frederick Motor Co. Prince Frederick, Md. Waldorf Motor Co. Waldorf, Md. Jesse M. Gue Damascus, Md. Pence Motor Co. Manassas, Va. Southern Maryland Garage Upper Marlboro, Md. Blythes Garage Lanham, Md. Central Garage % LaPlata, Md. THE EVENING STAR. WASHINGTON, MARKET ACTION HELD NO CLUE TO FUTURE OF WHEAT PRICES Withdrawal of Farm Board to Mean Restoration of Free Trading—Surplus Problem Is Chief Drawback. DIAMOND MARKET DECLARED FIRMER Adjustment of Production to Sales Has Good Effect on Prices. BY J. C. ROYLE. Prices of dlamonds not only have withstood with unexpected strength the period of depression since late 1929, but there are indications now appearing in reports to Government dcpartments that the price trend of the precious bits of carbon is turning upward. This fact, according to those in close touch with the industry, has come about as a re- sult of stabilization of the diamond in- dustry and the maintenance of a bal- ance between supply and demand. Diamonds are on the list of so-called luxuries. They are supposed to be af- fected deeply by the trend of business conditions. The strength shown by the diamond market is taken, there- fore, as an outstanding example of the possibilities of adequate stabilization of production and marketing from within the ranks of an industry itself. The fact that the government of British South Africa is also concerned in this effort has not detracted from the strength of the example. Quality Regulated. Since the passage of the precious stones act of 1927, the South African government has had vested in it very wide powers to assist the diamond in- dustry through regulation of the quan- tity of diamonds which can be put on the market from time to time. But the law indicates clearly that it was the in- tent of the act that these powers should be exercised only when the industry was confronted with difficulties it could not itself overcome. In 1927, when the Namaqualand flelds were at the top of their produc- tion, the industry was threatened with disaster. Production rose to a peak in Beptember of that year when over $2,500,000 worth of rough stones were placed on the market. Under wise ad- ministration production in that fleld fell to about $6,000,000 for 1930. For the whole South African field the pro- duction in 1930 was under the $10,000,- 000 mark. Under normal conditions, it is estimated world demand is fully up with production. The South African government pos- sesses the power to prevent any repe- tition of overproduction from alluvial flelds within the union and the gov- ermnment has made it plain it is de- termined that production should not again assume such unreasonable pro- portions as to constitute a menace to the diamond trade as a whole or to the profits of the individual diamond | Bo companies, The Minister of Mines of South Africa declared at the begin- ning of this r that the government intended to limit its own sale of dia- monds proportionately with those of other big producers and would only sell diamonds for export through the Syndicate. New Era Started. ‘The formation of the Diamond Cor- poration marked the beginning of a new era in the diamond industry. The existing agreements with the old syn- dicate expired the first of this year but on that date’ s new agreement be- came operative for a period of four years, which has the full co-operation of the Minister of Mines and Admin- istrator of Southwest Africa. The agreement does not include outside producers directly, but most cordial relations exist with the diamond com- panies of Angola, the Congo and West Africa, which have subscribed to the policy of limitation of production and lxreel 'd to make sales through cne chan- n el. Diamond men say these facts have assured the public of the stability of the price of the diamond and as a re- sult there is now being experienced an increasing demand for the finer grade of stones. The diamond “season” is now approaching. Sales are gener- ally more brisk in anticipation of June weddings and graduations. Diamonds are not numbered among the recessi- ties but many of the 9,000,000 young women under 18 have yet to be con- PRODUCTION OF POWER CONTINUES TO INCREASE | By the Assoclated Press. NEW YORK, March 26—Electric power production, an important barom- eter of industrial actlvity, continued to show improvement in the week ended last Saturday as compared with 1930. ‘There was a less than a seasonal de- cline in total kilowatt hours from the previous week, and the total was only 23 per cent under the aggregate for the corresponding period of last year. For the week ended March 14, the de- crease from 1930 was 3.4 per cent. Re- cent gains have been made on the At- lantic and Pacific Costs, whereas the fiifié‘“ industrial region is running be- BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, March 26.—There are two aspects of the situation brought about by the Farm Board's announce- ment that the so-called stabilization | purchases of wheat will end with the present crop—two viewpoints from | which it may be discussed. First, there is the effect on the grain markets them- selves, and hence on the condition of the agricultural population, and, sec- ond, there is the probable influence of the announcement on the general eco- nemic outlook. It will be the wheat market which will appraise the results under the first head, and it will be the stock market which will do the same for the second question. Cotton and other farm prod- ucts are likely to move sympathetically with wheat, particularly as cotton has been the object, although to a much less extent, of the Farm Board's buying operations. Speculation at Low Point. ‘The important point, however, is to realize that the immediate reaction in any of these markets, including stocks, is not necessarily the final judgment. Speculation in all these marts is at comparatively low ebb, and it may take |a_considerable period before the exact effect on prices may be seen. It is also to be remembered that there was nothing unexpected about the board’s decision. It was a foregone con- clusion that the experiment the United States attempted in wheat would fail, as surely as did that of Great Britain in rubber, of Brazil in coffee and of Cuba in sugar. The only doubt was as to the exact time when defeat would be ad- mitted. The stock market has been con- vinced all along that the greatest ob- stacle it had to hurdle on the road to recovery was this very situation which has develog:g in wheat. To that extent the news been discounted. Now, as to the grain prospect, one thing has been gsined and that is the restoration of a free market. Specula- tion in wheat, hnmfered as it was by half knowledge snd half suspicion of the Farm Board's operations, has dropped off to an alarming extent. That situation at least will be corrected now. Traders will be allowed, as far as the new crop months are concerned, to ex- press their views in quotations and so make the market a help and not a hindrance to those who have legitimate business to transact therein. Holdings of Board. ‘There remain the I f ;hn‘t u-cquh-ed by the Farm Board dur- g rah esf tes these at somewhere be- tween 150,000,000 and 200,000,000 bush- els, but the exact is not known, the Government ref to make it public. It is true that surplus will still overhang the market, but it is in- conceivable that the board should dis- pose of it in any manner as would in- terrupt recovery, if and when recovery comes. It is on record to that effect. as hopeless as it seems. There is an enormous overproduction and there are indications of another crop, not only in the United States, but in other nroduclr;} countries. Russian men- ace remains and yet we are dealing with an agricultural product dependent on weather and all other vicissitudes to which crops are subject. The world price today assumes the largest possible production. “FEE” SCHEME REVISED. Advocates of McNary-Haugenism Urge Equalization Idea. BY OWEN L. SCOTT. Special Dispatch to The Star. CHICAGO, March 26.—The “ i- zation fee” scheme of :mn':‘m on wheat effective through dumping of surplus supplies on foreign markets, with the cost assessed back on the pro- ducers, is bobbing up again in the grain States where liticlans appeared shocked over the Farm Board announce- ment that it is pulling out of price stabilization operations. At the same time heard in Spring farmers are pictured as feeli once again they are being called upon to bear the brunt of acreage restriction demands. The outburst from politicians is such that it suggests an agressive at- tempt to revive McNary-Haugenism. Effect of Surplus. Even the grain trade, badly damaged by the Government policy of price peg- ging, gave few huzsahs at the an- nouncement of an end of the pr m. Leading members of the chlcuoog: d of Trade—world center of grain de ings—claim that so long as the Gover: ment holds 200,000,000 bushels of wheat without announcing a definite policy for disposing of it, this huge accumulation will act as an impossible weight on the market. That causes traders to agree with Chester H. Gray, Washington repre- Union Wall Papers WELCOME THE SUN! ¢ Would you ase sure longer life to your wall papers? Would you have them retain their original beauty — immune to the sun’s rays—safe from fad- ing? ® Then by all means ask your paperhanger or dec- orator for Union SUNTRYD Wall Papers. They offer you exquisite new designs and color- ings—they are sun- fast—and they cost no more. Insist upon them. UNION W ALL PAPER CO. Washington imore Pittsburgh + : - Norfolk LINION “Lastingly Beautiful *SLIN-TRYD sWALL PAPER BN Q9 S0 N ARSI tIll-(uud operations. ~Senator | Meanwhile, the world situation is not || D. C., THURSDAY, sentative of the America: reau Federation, that 5 now is not improbable. In 1895 July wheat here sold at 50%; cents a bushel, with cash wheat at 487; cents, and values now are lower than at any time since June of that year. ‘The belief expressed by those closely in touch with Farm Board operations is that this organization was without funds to finance another year's mar- ket operations. The present board chairman has indicated that loans to farm associations total about $250,- 000,000 out of a total Farm Board ap- propriation of $500,000,000. To acquire and carry the approximately 200,000,000 bushels of wheat now held by -the board would call for a larce slice of $200,000,000, while cotton stabilization operations also are presumed to be ex- pensive. This would leave little for another year of activity without addi- tional large appropriations. “So long as these accumulated stocks of wheat hang over the market, held only by the vague suggestions that they will be handled in such manner as to impose & minimum of burden upon the price level, they will serve wholly as a depressing influence intimidating buy- ers of all classes,” saild B. W. Snow, a widely known trade authority. But most criticism is coming from the Farm Bu- cent wheat Russian Blouse Pajamas, with the 1.95 Sweater and Hose Sets; all wool; new 34,95 173% and 18. More of the Wonderful Shetland Suits | We're fortunate to be able to com- mandeer more of this remarkable weave. It's all-wool; we line them with Celanese and fashion them in the latest mode. Choice of Grays, tans and browns: 328.75 Extra Knickers to Match, $6.50 Another Group of Specials for Friday And a broken lot of Mode Smart Shirts—sizes 1334, 1434, 16, 163, 17, Clearance at... The Mode—F at Eleventh MARCH 26, 1931 Northwest, where McNary-Haugenism got its start and where lug wheat planting is about to get under way. The complaint is that the Farm Board made no announcement of its future plans while Winter wheat farmers in the Southwest were putting in an acreags as large as a year ago. Now the board announces: “Spring planting of wheat is at hand. Let farmers in that region heed the warning to reduce acreage, and as plant- ing time in other regions rolls around, farmers there should do the same.” Much the same policy of concentrat- ing on Spring wheat acreage was fol- lowed a year ago. after Winter wheat ‘was coming up. The Winter crop again is in prime condition and mises an- other 600,000,000-bushel yield unless un- foreseeable developments occur. The Spring wheat crop normally is under 300,000,000 bushels. Right now there are approximately 450,000,000 bushels of wheat in sight in this country with the prospect of a carry-over of 300,000,000 bushels—caus- lnf grain authorities to despair of the price situation. (Copyr! WEST VIRGINIA WATER SERVICE FIRM REPORTS West Virginia ‘Water Service Co., & subsidiary of Federal Water Service Corporation, reports revenues of $853,679 for the year ended January 31, 1931, as compared with $816,783 for the preceding 12 months. ting expenses, maintenance and taxes, other than Pederal income tax, totaled $474,- 649, as against $435,845. Gross income amounted to $379,030, which compares with $380,939 for the year ended Jan- uary 31, 1930. 1931.) AT Nearly 19,500 radio receiving licenses have been issued free to the blind by the British government. Broadcloth Shirts, plain colors; mon- shrinkable; collar 31.60 '3 for $4.78 This Man Knows how to Grow Hair is a skilled Thomas’ scalp specialist. 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