Evening Star Newspaper, May 12, 1931, Page 14

A—14 wix FI CHEAP MONEY SEEN HOPE FOR BUSINESS Lower Call Loans Traced to Reduction of Redis- count Rate. ' BY JOHN F. SINCLAIR. NEW YORK, N. Y, May 12 (N.AAN.A).—A listless and indifferent stock market greeted traders yesterday. Interest charges for renewals of call loans dropped to 1 per cent, the lowest in 23 years. This is understood to have resulted from the cut in the rediscount rate of the Federal Reserve Bank of New York to 1% per cent. The cut in the bankers' acceptances also had its effect. If cheap money is the dynamo which starts business, as many economists have stated repeatedly in the past, the situation seems hopeful right now. NANCIAL. | THE EVENING NEW YORK STOCK EXCHANGE Received by Private Wire Direct to The Star Office. (Continued From Page Stock and Dividend Rate. Teo Motor ctfs (40c) Republic Steel. . Republic Steel pf.... Reynolds Metals (2). 40% Reynolds Tob B (3).. 1% Richfleld 4 Rio Grande Oil . 22 Rit Dent Mfg (2% ).. 16% Rossia Insur (220).. 715 Roy Dtch(m1.3404) . 38% Safeway Stores (5).. 5% St Joseph Lead (1).. St Louis & San Fran. St L-San Fran pf (6) St L Southwestern. . Schulte Retail Strs. . Schulte Retail pf (8) 1601 Seaboard Afr Line... ~Prev, 1931~ High. Low. 8% 7 25% 12 27% 1% Servel Inc. Shattuck F Shell Union Ofl.. ... Shell Un Otl pf (6% Simmons Co. ......0 4 Sinclair Con O1] (1).. Sinclair @11 pf (8 Skelly Ofl..... Solvay Am pf ww 5% South Port Rico Sug. South Cal Ed (2) ‘President Hoover has aimed his first attack on the Treasury deficit at the Nation's military expenditures. After a lengthy consultation with officials of the War Department, it has been de- cided that substantial economies are possible without weakening the national defense. Future expenditures in the Government's civil activities cannot be pared down in the same way since they are authorized by Congress and extend in many cases for years to come. 1t is natural for the administration to attempt every desperate remedy before resorting to an increase in taxes especially with another presidential election next year. Yet in the face of so huge a deficit, one wonders how much the administration will be able to do in the way of economizing in this fashion. Despite appreciable reductions, the balance of the deficit remaining to be met will call for more decisive ction. 5 Financial observers feel that even an early upturn in business conditions will il to save the situation, since it takes some time for the reaction to be felt in revenue returns by the Government, but there is no point in preaching calamity, and the present deficit of $1,- 000,000,000, while huge, is far from catastrophic. The International Chamber of Com- merce résolutions, adopted in Washing- ton last week, leave Hendrik Shipstead, Farmer-Labcr Senator of Minnesota, unmoved. | The Senator’s comment was that foreign governments pay their debts to the United States with “less than one- half of 1 per cent of their national in- come, less than 3 per cent of their na- tional budget, and less than 13 per cent of what they spend for armaments for war. Senator Shipstead believes that “if a man is only your friend on condition that you pay his bills, his friendship is of doubtful value.” What the Senator wants is a revision of the Treaty of Versailles, which he believes is holding back European recovery, but about which Europeans “talk of only in whis- The Minnesota Senator's views are probably held by a great many others. The American people are fer from unanimous on the subject of war debts, reparations and disarmament. Gov. Eugene Meyer of the Federal Reserve Board is reported to have said recently that what the country needs right now is “less water in the banks and more water on the ground.” This means that Gov. Meyer is opposed to any artificial pumping of credit into the financial reservoirs of the Nation. But_he does favor plenty of rainfall “It seems strange to me that the Federal Reserve policy has not been smaecu to moré severe scrutiny and criticism than it has” said a Western banker in New York this week. “If the ‘of the Pederal Reserve, at , was to minimize,"if not thing ly its policy if it allows such a_condition 10 exist as we are in now. Before we are through the: Federal Reserve will have plenty to answer for.” There is a growing feeling through- out the United States that the Federal Reserve System should get a move on, tell the people what it is attempting t0 do and how it expects to co-operate to bring the country out of the present business slough. The illness of Capt. Robert Dollar of San Francisco has been followed closely by Americans. A rugged, vigor- ous Presbyterian, this 87-year-old vet- eran is easily the dean of American shipping. He has men on the Pacific Coast how to build up an extraordinarily successful steam. ship business with the Far East. Probably no American is better known or better liked in India, China or Japan. In China, where they have frequent revolutions, he is known to the leaders of all sides and he can and does travel between lines of fire in perfect safety. For 30 years now, Capt. Dollar has had his ships plying over the Pacific Ocean. It was in 1901 that he took his first lumber cargo to China. Today he has a fleet of 50 ships, of which 9 are the finest “around-the-world” liners on the seven seas. A bombshell has been exploded by Ttaly, Austria and Hungary, cn the very eve of the League of Nations meeting, | with a triple trade agreement. The| force of this detonation is almost cer- tain to knock Briand's French plan into a cocked hat. The form of this new economic alli- ance may help solve the present diffi- | culties in Europe, distasteful as it may be for French ambitions. It is made up of separate Austro-Hungarian, Austro-Italian and Italo-Hungarian The three pacts are tied to- gether by a triparte treaty. Politics may guide, but are powerless to control the economic currents of Eu- rope. Here is the beginning of the break-up of the artificial jam brought | about by a host of tariff barriers. Al- ready the natural trade areas of the old continent are drawing their true boundaries regardless of the political | map. ‘The member nations of the new cen- tral European bloc will enjoy cheap ex- port credits, tariff rebates and import quotas. The flow of commodities emong them will be eased. When the current of fresh economic vitality gains mo- mentum, it will doubtless force the floodgates of economic nationalism all over Europe. It is one of the most| momentous events in post-war times | and seems destined to alter the whole economic and political structure of the continent. Naturally, the impact will be world-wide and will be felt by busi- ness in the United States, too. (Copyright, 1931, by North American News- paper Alllance.) |city gas to ultimate consumers, the de- South Pacific (6) South Ry (8) South Ry pf (5). Spear & Co. . Spiegel-May-Stern. . Stand Brands (1.20 Stand Comel Tob StandG& E (3% Stand G & E pf (4) Stand G & E1 pt (7). Stand Ol Cal (h2%). Stand OII N J (12)... Stand O1l N Y (1.60). Sterling Sec A Stewart Warnel . Stone & Webster (3). Studebaker ¢1.20)... Sun Ofl (11).... Sun Oil pf (6). - Superheater (234) . . 17% 20% 4 88% 64%a 57 109% 101% 513 33 b2 33% 26 17% 2% 10% 35% 18% 34w ‘Tennessee Corp(50c) Texas Corp (3)..... Tex Gulf Sulph (4).. Texas Pac Land Tr.. Thatcher Mfg (1.60). The Fair pf (7) . Thermoid Co Third Avenue 5 Thompson Starrett. . Tide Water As (60c). 4815 Tide Wat As pf (6).. 7% Timken Det Ax (30c) 714 Transamerica (1)... 61 Tri-Cont Corp. 297 Trico Products(2%). 2 40 Twin Citv RT of (7) 108 14 Ulen & Co (1.60).. 1 Und-Ell-Fisher (5).. 1 “nion Carb & C 1.60. 165 S _w Sral 106% 102% 9 i 5% 3% 4% 68 12 18 11% 45% 62 21% - (ST T Sales— Add 00. High. Low. Close. Close. 3. 5 4 8 13% 30% 15% 51% 13.) ~Prev. 1651~ Un Pac! Un Pac! Un Tan Unit At Unit Bi Prev. 5 13% 30% 15% 51% 1% 4% 24 21 31% 51% 16%4 Unit Co Unit G Unit G % US Ind: U S Re: U S Ste 119w 2 3, vadasc: 76% 87% Vanadi 108% 71% 4115 Vulean 26 Waldor: War Bt West Pa El pf (6) a El pf (1) n Dairy (A) n Dairy B.... n Md.. . n Pacific n Union (8). g A B(2). West P: Wester Wester: Wester: Wester: Wester: Westin, Wilcox Willys- Wilson Wilson 66 5% 10:30 A.M... Dividend , rates cash payments' based tions. 5 Unit of tradin n_stock. stock and Dividend Rate. % Unit Corp pf (3). Unit Fruit (4).. Wess Oil & Snow (2 WessO&Snpf (4).. 3 Prev. Close. 173 86% 20% 31% Sales— Add 00, Higa. Lov. Close. 8170 167'% 168 86'5 86! 207 32% 39 7 22% 51w e (10)..00.n ific pf (4)... 1 kCar (1.60). reraft. iscuit (2) D (76¢) & Im (1.20). & Im pf (5). us Alcohol(2) U S & For Sec pf (6). U 8 Freight. U S Gypsum U S Leather USPipe & F alty & Imp(2 U S Rubber. el (7). Univ Leaf Tob (3). Univ Pic 1st pf (8). 2 Univ Pipe & Rad Tt P&T, A (at2 35 o Sales Corp um Corp'n 98% Va Elec & Pwr pf. Det (4). Wabash RR...... Wabash RR (A). 1 Sys (1%) .. Walworth Co (1).... Ward Baking p? (7). Warner Bros Plct, Warner Quinlan. ... 1 50 os cv pf (3)..100s 1 10s 10 Westing EI&Mfg (4). Westing E&M pf (4). Wextark Radio Strs. Wheel & L Erie pf... White Motors (1) 0il & Ga Overland. & Co & Co Woolworth (2. 4 Worthington Pump Wrigley (Wm) (4) 23 Yale & Towne (2) 18'% Youngs Spring (3). 2% Zenith Radio.... Sales of Stocks on New York Exchange. L1258 3 + 200000 12:00 Noon....... 600,000 000 2:10 P.M. . 1100,000 as given in the above table are the annual oc the latest quarterly or half yearly declara- g less than 100 shares. fPcrtly extra. tPlus! n a Pald last Washington Ticker BY CHAS. P. SHAEFFER, Associated Press Business Writer. ‘The widespread. cheapening of money rates in this country, culminating in a reduction of the rediscount rate of the Federal Reserve Bank of New York to 13, per cent last week, is expected in Government circles here to result in foreign cuts, particularly with respect | to the London market. Such a procedure would€o a long way | toward punctuating the barrier that | has been put before the unhealthy im- portations of gold to this country by the New York rate reduction. Officials here believe the abnormally low return offered here will divert surplus funds of other countries into channels offering more profit. English business has already become stimulated on the cxpectation of easier money there, trade advices state. Trad- ing in gilt-edged securities is said to be on the upgrade, and many British firms plan to go into the money market for | needed credit requirements. inion varies as to the probable im- mediate effect of the New York cut in domestic business. It is agreed, how- ever, that it will have no beneficial effect on the stock market, but should help substantially the price level of Govern- ment and the highest class industrial bonds. By the latter group is meant those bonds of industries about whose payment of interest there is no reason- able doubt. Government leaders also hope it will drive much money into the American bond market, putting the latter in po- sition to absorb new issues which are held necessary to_trade recovery. The Bureau of Mines reports com- mercial stocks of bituminous coal used largely for industrial purpcses amount- ed to 29,500,000 tons on April 1. In comparison with the amount on hand at the beginning of the previous quar- ter, this is a decrease of 7,700,000 tons and is the smallest tonnage in storage for any period on record since 1922. Exports during the first quarter of the year averaged 175,000 tons a week, as against 331,000 tons in the preced- ing quarter. The weekly rate of con- sumption in the United States during the quarter amounted to 8,868,000 tons, as compared with 8,987,000 tons in the previous quarter. In comparison with the average weekly rate of consumption during the last quarter of 1930, the rate of home consumption shows a decrease of 1.3 per cent. Stocks of anthracite in retail ygrds on April 1 showed the usual seasonal decline, being 38 per cent under those on hand January 1 and also are some- what less than on corresponding dates of other recent years. In terms of days' supply. the present stocks of anthracite are equivalent to 21 days’ requirements. Dr. E. B. Swanson, chief economist of the Division of Petroleum economics of the Mines Bureau, says natural gas conveyed through long-distance pipe lines in this country replaces oil rather than coal. This is true, he says, not only in the case of domestic heating, where it is well known that ofl is suffering from the new competition more than bitumi- nous coal, but to an even greater ex- tent by its substitution for oil by man- ufacturers of artificial gas in the en- them. In fact, so far as substitution of natural gas for oil for this purpose makes it possible to reduce the cost of velopment may even result in an in- creased demand for bituminous coal, or coke made from bituminous coal, as to | the, source of municipal water gas. | Dr. Swanson said there is no oc-| casion to fear a_ shortage of matural | gas in this country, as two Western natural gas fields alone can meet the present and prospective demand for gas | for 37 and 75 years, respectively. The Federal Reserve Board's condi- tion statement of weekly reporting member banks in leading cities on May 6 shows decreases for the week of $128, 000,000 in loans and investments, $56, 000,000 in net demand deposits and $74,000,000 in Government deposits and FOREIGN EXCHANGE. tations furnished by W. B. Hibbs & Co.) s Nominal gold Selling checks Value London, pound Rome, Zurich, franc Athens, drachma Madrid, peseta Vienns. sl : Budapest, Dengo. . Prague, crown (nom.) ——e BAR SILVER NEW YORK, May 12 (#).—Bar silver steady and Y, higher at 28Y;. Dealers reperted offerings light. Galoshes shipped from Poland to Lat- via last year weighed nearly 14 tons, ] an increase of $12,000,000 in time de- posits. Loans on securities declined $16,000.- 000 at all reporting banks. and “all other™ loans d:opped $55,000,000 at all reporting__ institutions. Holdings _of United States Government securities | declined $26,000,000 at all reporting banks, and holdings of other securities decreased $31,000,000 at all banks. Borrowings of reporting members from Federal reserve banks aggregated $36- 000,000 on May 6, a decline of $2,000,000 in the week. Great Britain is making a drive to entrench itself in the Arg:ntine motor car market. Evidence of this fact is vices to the Department of Commerce which report 40 modgls of pnunfir cars and 25 models of trucks were displayed by 17 British car and truck manufacturers at the exposition of British arts and industries at Buenos Afres. richment of the water gas produced by | £ tives are accustomed to American stand- ards in both construction and in ap- rance. . Press comments and orally expressed opinions incident to the show agreed that the cars as a whole seemed to represent careful manufacture, but did not have the type of design which Ar- gentina now expects in its motor cars. ‘The lines of the British cars were straight rather than flowing; many, especially the smaller ones, were built top, somewhat like a pyramid. colors, generally, were ‘conservative, but the Argentines usually prefcr brighter colors. GLASS COMPANY’S NET ' MAKES GOOD SHOWING Special Dispatch to The Star. TOLEDO, May 12.—Owens-Illinois Glass Co. and subsidiaries for the 12- month period ending March 31, 1931, shows net earnings of $2.32 a share for the 922,173 shares of common stock outstanding. These earnings are after deducting interest on the outstanding debentures and dividends on the pre- ferred stock. The earnings on com- mon stock for the 12-month period ended December 31, 1930, were $2.45 per share. DRY GOODS MARKETS. NEW YORK, May 12 (Special).—Cot- ton goods markets were fairly active today. Print cloth quotations were un- changed at 5 fcr 64x60s and at 5% for 68x72s. Raw silks were quiet and un- changed. TREASURY CERTIFICATES. (Reported by J. & W. Seligman & Co.) s Bid. Ofter. 4 Canadian Nor. ARt 102'2 Chi. Northwestern R. R. 3 15: Island 45 1934 , 55 1947 7 & Rio Grande 4';s 1936 Gen. Mot. Accep. Corp. 8s 1937 General Petroleum_Corp. 55 1940 General Theaters Equip. 6s 1940 Goodyear T. & R. 55 1957 Grand_Trunk of 651936 108 Guit Ol of Sheantl Canada 55 1937 s | 947 i932 Wheeling St Wheeling STOCKS EX-DIVIDEND. NEW YORK, May 12 (®).— Company. Brooklyn Edison........... Consol Gas (N Y) 'C.. 00 rbanks Morse 7% DIf... Loblaw_Gr Lt Oahu Ry & Phila Sub Water pf. NEW YORK, May 12 (#).— Final. Pe- Pay- Hidrs. of Compady. Rate. riod. able. record. Venezuel Ofl Con.121a% .. . e Omitted. Cal Pac Title & Tr Prentice Hail.... Paramount Pub..62%c Q@ Schukert & Co...11% Regul p1.31.50 Knox. ......37%¢ met Cot ' Mills. .33 nt Ind Pow 7% cum Df........ Chicago Invest Bf Columbia_Pict pI...7; Congol Nairn pf.51.75 Rt P & L'pf. .50¢ June 27 June 5 June June May June June June June June 5 ¢ O OOOEnE0000P woDd > cum pf Nebr Fow 67 o. 1% pl...o New ‘En, PS8 o §6 hio Pw ‘:'} Pl itts Youn{un & el Do, 8147 . 31 prentice Hall §3 pi.T Eublic Biee’ Lt pF 31 Spenc Kellosg & 5.20c St D:Iber Mg . 25 Since 97 per cent of automobiles in the Argentine are American, the Na- DOOOONOOOOOLOOOO LOO wide at the floor and tapcred in at the | The | |HAMMOND CLOCK NET IN SHARP" ADVANCE Special Dispatch to The Star. CHICAGO, May 12.—Net income of the Hammond Clock Co. for the year | ended March 31, 1931, was $507,721, after all charges, including depreciation and Federal income taxes, equivalent to $5.46 a share on the 93,000 shares of common stock issued and subscribed, the annual report mailed to stock- holders today shows. This compares with a ret income of $155,937 in the | year ended March 31, 1930, equivalent | to $1.68 a share on the same basis. CHICAG(; DAIRY MARKET. CHICAGO, May 12 (#).—Butter— 116,603 tubs, firmer: creamery extras (92 |score), 21 ; standards (90 score, car- |lots), ‘2134 extra firsts (90-91 score), 201,a20%; firsts (88-89 score), 1915a20; | seconds '(86-87 score), 18a19. | ._Eggs—23,085 cases, firm; extra firsts, 117%; fresh graded firsts, 1634; current | receipts, 1415a151;; . storage packed 'firsts, 18',; storage packed extras, 19. Poultry, alive—2 cars, 35 trucks, firm; fowls, 187;a19%;; brollers, 31a34; roosters, 13; turkeys, 20a23; old ducks, 17; heavy Spring ducks, 20; geese, 9. INVESTMENT TRUSTS NEW YORK, May 12 (#).—Over-the- counter market: | Bid. Asked | Al_Am Investors Shrs “A" 8 8% A B C Tr Shrs series D... A B C Tr Shrs series E. Am & C & 3en Eauities Chain & Gen Eauit 6'%' | Chain ‘Store Invest. . | Chain Store invest Bi | Chain_ Store Shr Owners....... Chartered Invest 3 4 Chartered Invest pf Chelsea Exchange A Chelsea Exchange B Cumulative_Tr Sh. Corporate_Trust Shares Crum & Foster Ins B Crum & Foster Ins pf Crum & Foster Inc B Crum ‘& Foster Inc 87 Deposited Bank Share N | Deposited Bank Shrs N Y Diversified Trustee Shrs A Diversified Trustee Shrs B.. Diversified Trustee Skrs C First_Amer Corp_.... ... Five-Year Fixed Tr Shrs Fixed Trust Shares A Fixed Trust Shares B Fundamental Tr Shrs A Fundamental Tr Shrs B General Equity A Granger Trade, ... . Gude Winmill Trad. Incorporated Investo; Incorporated Investors Eauit Independence Tr Shrs.... Insur Sh & G Int Eecur Corp Am B. Int Secur Corp Am 6 Int Secur Corp Am 8 Investors Trustee Shares...... Jackson & Curtis Invest Assoc. Jackson & Curtis Sec Corp pf. Leaders of Industry A B Leaders of Industry Leaders of Industry | M | May 1|y Nor ‘Am Trust Shares.. Northern Secur ... L | Old" Colony” Invest” Trust Old Colony Trust Assoc Oil Sharts Inc units.. Public Service Tr Sh, Representative Trust Research Inv Corp.. Secur Corp Gen 36 pf. Second Int Secur Corp Second Int Secur oCrp 8ec Int Secur Corp 6% ank . Spencer Trask Fund . Stand Am Trust Shrs. Stand Collat Trusteed Super Corp of Am Super Corp of Am Buper Corp of Am Tr Shrs Super Corp of Am Tr Shrs Trust Shrs of Amer... % Trustee Stand Invesi Shrs C... Trustee Stand Invist Shrs D Standard Oll Shri B c.. D Two-Year Trust Sh Twentleth Century Fixed Tr Fixed Shrs. .. United Bank Tr .... .. U'8& Britisn Int Lid A /U 8 & Britisn Int L td B! U £ & British Int Lid 33 U 8 Bl L% P bnr B ec T Shrs' B. Universal Tr STAR. WASHINGTON, D. C., TUESDAY, IBOND LIST WEAK | B R g 54| Wash. (301 , | Washington Mechanics ' (30) INHEAVY TRADING Holders of Junior Railroad! Bonds Flood Market and Force Decline. BY F. H. RICHARDSON. Spectal Dispatch to The Star. NEW YORK, May 12—Holders of junior railroad bonds took fright to- day in the face of the report of a small deficit by the New York Central fcr the first quarter and threw their bonds onto the market for what they would bring. Prices melted away 2 to 4 points in the same bonds that were s0 heavily bought last week, and recent gains were wiped out—some issues drop- ping to new lows. The list in general was weak, with | the exception of the highest grade sea- soned investment securities. Foreign dollar bonds pursued the same trend in general, with acute weaknesses in the Argentine group, where a govern- mental deficit of over $40,000,000 was expected to add flame to the revolu- tion that has been smoldering there. Argentine 6s were off 4 to 6 points, under 80 for the first time since issue and from 15 to 17 points under ac- customed levels. Trading was heavy all through the list, activity being increased by some forced selling occasioned by the weak- ness of stocks. Money rates were un- changed at_their low levels. It was the same situation that has been seen so many times in the mark:t in the past 18 months. When the in- vestment market gets every factor into place for an upturn, something comes along to cause renewed unsettlement. The rise in secondary carrier bonds last week was based not on first quarter earnings, which were decidedly bearish, but on April earnings and favorable prospects for the second and third quar- ters. Very likely the New York Cen- tral itself w'll show a vastly better re- port at the end of the second quarter. Today, however, St. Paul 5s, Erie 55 of 1967 and 1975, Rock Island 4!3s, Mis- souri-Pacific general 5s, 5s and 5)s; Frisco A 4s and 4!>s and others were sacrificed in large blocks. New York Central bonds also reflected the liqui- dation with fractional declines in the recently issued 415s. Nickel Plate 4158 dropped heavily after their recent wide Trecovery of 10 points from their low. So did Nickel Platz 515s. At the same time Atchison general 4s advanced to a new high price and there was a keen demand for such prime issues as American Telsphone 5s, Chesapeake Corporation 5s, Columbia Gas & Electric 5s, Consolidated Gas 5358, Great Northern 7s, National Dairy Products 5Y;s, New York Telephone 6s, Philadelphia Co. 5s and Standard Oil of New Jersey 5s. Austrian government bonds were fractionally lower in response to the announcement that the Kreditanstalt had suspended payment, though the decline was checked by the news that the government would aid the bank to reorganize. South American issues, especially those in which portions were floated in both London and New York, werz subjected to arbitrage operations and prices were slightly higher here while London quotations were heavy. But weakness persisted in South Amer- lcans, owing to the slide in Argentine issues. Europeans were mostly un- changed. The municipal market was strong and active. A syndicate headed by the National City Co. secured New York City's offering of $52,000,000 of four- year co te stocis 100.0119_for all or none of the bonds as 3's. This was a basis of 2.99702 per cent and constituted another record price for New York's obligations. The remium was $6,188. There were five ids submitted. United States - Government continued to make new highs, (Copyright, 1931.) issues Washington Stock Exchange SALES. Potomac Electric 6s 1953—$500 at 109. Washington Rwy. & Elec. 45—31,000 at 907, Capital Traction Co.—19 at 34, 10 at 34, 2 at 34. Waschington Gas Light Co.—10 at 116, 10 at 116, 15 at 116. Riggs National Bank—10 at 371, 10 at 370. Columbia Sand & Gravel pfd.—10 at 93, 3 at 93. AFTER CALL. Potomac Electric 6% pfd.—5 at 113%. Potomac_Electric 5 pfd.—19 at 110%. Capital Traction Co.—5 at 34. Washington Gas 6s “B"—31,000 at 10635, $1,000 at 106%. Bid and Asked Prices. BONDS. PUBLIC UTILITY. Amer. Tel. & Tel. 4%s '39. Am. Tel. & Tel. ctl. tr. 58 R R & Pot. guar. 55 & P. Tel. of Va. b Capital Traction R. R. City & Suburban £s. Georgetown Gas 1st 5 Potomac Elec. Cons. 5 Potomac Elec Wash.. Alex. & Washington Gas 4%ss. Washirsion Gas 58 Wash. ‘Gas o, ash. Gas 65, series Wash' Rwy. & Elec. 4s.. MISCELLANEOUS. Barber & Ross. Inc.. 6'as. Chevy Chase Club 5i6.. Golumbla Country Club 5735 5 Cons. Title 6s. STOCKS. PUBLIC UTJLITY. : . 8%2% ! Wash. Rwy. & Elec. com. (7)..] & Wash. Rwy. & Elec. pfd. (5)... NATIONAL BANK. Capital (14).... nd (9e) 0 Waskington (13). TRUST COMPANY. Amer. Security & Trust Co. (15) Continental Trust (6).. ... ..... 1 Natl Savings & Trust (i2i) Prince Georges Bank & Trust Union Trust (8s) Wash. Loan & Tri SAVINGS BANK. Bank of Bethesda (6%) Commerce & Savings (i East Washinglon (12) Potomac (10). . FIRE INSURANCE. American (12) Corcoran (10) Firemen's (8): .. Nationzl Union’ {i$) TITLE INSURANCE. Columbia (6h) ... i Real Estate (6h).... - MISCELLANEOUS. ss. Inc. Bldg. Cor and & Gravel Natl Sec. pfd. ( Belz, * Barber & Ros Col. Medical Col. S Dist. Eme Fed.-Am. Co. com. ed.-Am._Co. pfd. *Ex dividend. b Books closed. €50¢ extra. has, extr ; 35% extra. - bt MAY 12, 1931. .FINANCIAL, I ON NEW YORK BONDSW Received by Private Wire UNITED STATES. (Bales are in $1.000.) Sales. Higl Low. Close. Lib3%s32-47.. 8 10213 10210 10213 List4%s32-47. 1103 8 103 8103 8 L4th4% s 33-38 364 104 20 104 17 104 20 U S3%s40-43.. 13 102 22 102 21 102 21 3%s41-43.. 110222 102 22 10222 %3 43-47. 105 102 31 102 27 102 27 35 106 29 106 27 106 29 5 108 20 108 29 108 29 5113 8 113 8113 8 Sales. High. AbItIDI P& P 18 50% Ab & St 5%3 43, 101 Adams Exp 8 Allegheny o5 4 Allegheny 55 *4 Alleg Corp 53’5 Allis-Chalm 68 °3 Am Chain 6s ‘33 Am £ P 88 2080 Am1GCh5%s*45. Am IntCp 5%58"49.. Am B&R 1st 58 '47. Am Sug Ref 6s Am T&T cv 4%, Am T&T 58 °65. Am T&T c tr 58 '46. Am T&T 588 £°60. . 3 Am T&T 5%s 43 Am W Wks bs '34. . AmWat Wk 6375, . Argentine 5s ‘45, Argentine May Argentine 6s Ju '59. Argentine 6s Oc '59 Argentine 6s A '57 Argent! Arm & Co Low. Close. 49 4y 100% 101 7 88 Atchison adj 4s Atchison gen 4; Atchiscv 4%4s " Atch Ariz 435 °62. ., At & Danv 2d 4s '48 AtC Lcol 48'52.... AtCL4%s"64. At Gulf 5559 At Ref deb 55 ‘37 Australia 4%s ‘5 Australia 65 ‘55 Australia 5s ‘57 Austria s"43. .. Austria 7s'57 ctfs. B&O4s'48., B&O4%s’33. B & O conv 4 60 B&O1istbs’48.... B & O ref 5595, B&O 58D 2000. .. B&O6s'95. ., B&O P&WV 4841, 1 B & O Sw dy 68 '50.. Bk of Chile 6 4 BK of Chile 63, Batav Pet 4148 43.. Belgium 6s '55. Belgium 634 Belgium 1 ‘55 Belgium 7 Bell Tel Pa bs Berlin Cy El 6555 Berlin CyEI 634 s'51 Beth Stcel pm 6336 Bollvia 7558 Bolivia 7s 69 Bolivia 8545.. Bordeaux 6s '34. Bos & Me 65 '55... Bos & Me 55 '67 Brazil 6%s '26. . Brazil 6%s 27, Brazil 7s. Brazil 85 41. Bremen 7s '35 Bk EdgnAb Bklyn Elev Budapest 6s '62. ... Buenos A 65’61 Pv. Buff Gen El 415581 BR & Pitt 4%s 57. Bush Ter con 68 55. Canada 45 '60 Canada 6862 Can Nat 438 ‘64, Can Nat 4358 °57. Can Nat 4345 '68. Can Nat 4% s "5 9 a wrpmtoaed Srocaon AR Can Nor 6%s db *46 Can Nor 7s deb 40.. 0 Can Pac s ctfs ‘44. Can Pac 58 '54. Cent Pac 45°49 Cent Pac 55 '6/ Cert-1d deb 6 Ches Corp 65 "4 C&Ogen4¥%s RO aSRmeI~E Chi & Ias 111 68 51, Chi Grt West 48 '59 Chi Ind&Lou 6s'66. Chi M&SLP 43%s E. Ch M&StP 4%s°89, Chi M StP&P C& W Ind cv 4 C& W Ind56%s 4 . Chile Cop db 55'47. CCC&StL 4%s E. Clev Term 4%3'77. Clev Term 5%s ‘72, Colomb 6s Jan '61.. Colombia 68 '61 Oct Colon O1l 6s *3i Colo & Sou 4348 °35. Colo & Sou 4% '80. Col G&E 58 May ‘52 Com Inves 53849, 50 Cuba Nor 5%s "42.. Csecho 8561, k 2 D&RGrgn4s D&RG W 63’55 Det Ed G&R4% Det Edison rf 5s Deutsche Bk 6. Dodge Br ¢l Donner St 7s ‘42 Dugquesne 4% krie con 48 A 53... Erle Gen Eriecv 68’67, Erie 58°76... Flat7s war.. Ftat 73 ex wi Finland 5% Fram | D 7%s French 7s°49. . French Gvt 7%s 41 Gelsenk’chen 63 ‘34 Gen Baking 5%s '40 3 German BK Ger Cen Bk 65°60J 12 Ger Cen Bk 65’60 0 39 German Bank 7s'50 2 Goody’r Rub 58 " GrandTr sf db Grand Trunk 7s *40. t Nor 4%48'76 D.. Grt Nor ¢%s"77 B. Grt Nor gn 5% ‘52, Grt Nor gen 7s Hoe & Co 6% s '34.. Hol-Am ss f 6 . Hud & M adj 6867, 8! 78Y; Hud & Mr£58/5T.0.19.100 . 9% 100, Direct te The Star Sales. High. Close. 01 101 102% 106% Low. 10; 102% 11l Cent 4s 53 1 Ce K 111 CCStL&N 4%s.. 15 11l CCSIL&N 63 A..113 111 Steel 4345 °40. 21 Inland Stl 4348 A’78 Inland Stl 4s% B'81 Int Rap Tr bs Int Rap Tr st Int Rap Tr 6s 32 Irt Rap Tr 783 Int Cement 58 48 Int & Gr Nor 63 '52. Int & G Nad 6s°'52. Int Hydro El 68°44. Int M Co 5s ret 41, Int Maich 6841, Int Pap 63 A *47 Int Pap 6s ‘55 IntRysCAS Int T&T4%s’63.. iat TET cv 4%s'39 Mt T&TSs"55.... Irish Free St ts "60. Italy 7s°51... . italy Pub Sv 78 '52. Japanese 5%s ‘65 6% ‘54 hCP&L4Y . Kan CFtS&M 4s ‘38 Kan City Sou 58 '50 Kan City Ter 4s'60. Kend 5.8 48 ww Kresge Found 6s 36 Kreug & Toll b3 "6y Lackaw St 53 '50... Laclede 535 C '53. Lake Shore 3%s '97 Lautaro Nit 68 54.. Leh Val cv 48 2003, LehV cv 4%s 2003.. Leh Val 5s 2000. ... Lig & Myers 58°51. Lig & Myers 7s Loew’s 68 ex war La & Ark 5869 McCormack 6s'34. . McKes & R.5% Manh Ry 1st ke K Mex 4s asstd Mexico 5 A ‘45 Midvale Stl 6 Milan 6%s ‘53 Mil E Ry & L 68 *61. M StP&SSM con 4s. MSP&SSM 5% MK&Taljbs 67, MK&TprinésA. Mo Pac gen 48 *75 Mo Pac bs F 17 Mo Pac 68 G *78 Mo Pac 58 H Mo Pac ref 52.. Mor & Co 1st 4%; NCh&StL4s'78., 1 Nassau Elec 45 °51.. Nat Dairy 5%s "48.. 51 50% 7 1017% 101% Nat Rad 6%s "47..,. 4% 4% 111% 111% 46 46 45 45 9815 98% 95% 95% 101% 991 < 106% 107% NYCentdb4s'3s.. 9 NY Cenrf 43452013135 NYCreim 68 2013.. 34 N YCentdb6s'ss.. 1 NY C&StL 4%8'78.110 NYC&StL N Y Edison 53 B * NY ELH&P 58°48.. NY NH&H 3% NY O&W 1st 45°'92. 10 NY O&W gn 4s°55.. 39 49 NY W&B %8 Nord 6% '50. Nor & Wnev No Am Co 55°6 N A Ed'son 55C'69 10 Nor Am Ed 5% 5 NorOT & L 63°47.. 1 Nor Pac 38 2047.4.. 23 Norway 5%s Norway 63’43 Norway Norway 6s ‘52 Ogden&L Ch 45, Oreg-Wash 4s ‘61 Orlent dev 5% Orfent PacG & K1 68"42... Pac T&T 1st 5537, Pan-Am Pet 6; Paramount 68 4’ Paris-Ly M 6s ‘58 Paris-Ly M 7s'58 I WARBURG BACKING - SETTLEMENT PLAN Supports Traylor’s Sugges- * tion Against Present . Daily Practice. BY CLAUDE A. JAGGER, Assoclated Press Pinancial Editor. NEW YORK, May 12.—Wall Strect has long been inclined to boast over the marvelous mechanism with which it set~ tles its security transactions. Virtually all transactions on the Stock Exchange are settled for cash through the clearing corporation within 24 hours, whether it is a 2,000,000 or & 16,000,000 share day. The busy Wall Street broker is in- clined to regard somewhat condescend- ingly the European practice of settling Stock Exchange transactions once & fortnight. 1t was something of a shock, therefore, * when Wall Street read in the afternoon papers a week ago today that a promi- nent Chicago banker, in addressing the ; International Chamber of Commerce in ‘Washington, had singled out the day-to- day scttlement as a crude Wall Street practice, which, for the -general eco- nomic welfare, should be abolished. ‘Warburg Books Traylor. But what the rank and file in Wall Street may regard as the somewhat radical view of the daily settlement taken by Melvin A. Traylor, president of the First' National Bank of Chicago, finds an occasional strong supporter in emincnt Wall Street banking circles. Most prominent of these is Paul M. Warburg, chairman of the Manhattan Co. and one of the founders of the Federal Reserve System. Mr. Warburg wrote in favor of the periodic settle- ment as long ago as 1907, and subse- quent events, particularly the stock market boom and crash of 1929, have only strengthened his conviction. Aside from the fact that it may re- sult in an unnecessary amount of labor, there is little objection to the day-to- day settlement of stock exchange trans- actions of itself, but it is felt tlhli its 1 the New York money market. Under the present scheme, brokers loans are placed for a single day only. Call loans are so designated because they are payable on demand. The ex- treme liquidity of the call loan market, therefore, makes it the chief reservoir of short-term funds. It is the boast of the stock exchange that not a cent has lzv:r bemnlzltnk:n:“lendn In“the cam‘l} n marl corporations individuals who have large sums for temporary employment are accustomed to put at least part in the call loan market. Short of Expectations. Mr. Warburg explains in his recently published two-vo::’;ne ‘work on the Fed- eral Reserve system that the present call loan market so dominates the short-term money market as to make 1 is not limited to foreign Its_ sponsors mvwm rg belleves that the di- from become Joans and banking control over them would be ccnsiderably increased. Real Danger Seen. same time, since rates would At e tly periods instead of Teserve system, there has been no duplication of the 125 per cent rate reached in 1907? The Federal reserve efforts to curb the on of brokers loans the most wholly unsuccessful. burg sees in this lack of control of the chief market for fluid funds a real danger. “It is impossible to believe,” Mr. Wa: burg has written, “that a country e: 99% | celling in business acumen will perm: Phila €0 55°67..... 21 Phila & d 65’49 11 Phillip Pet 5% 8°39. 39 PlllsbF M6s'43... 2 P CC&StL 4%8°77.. 1 Por RTam 6s'42.. Pos Tel & C 53 '53. . Pressed St C 55 '33. Prussia 6s ‘52 25 Public Serv 4 Pub Sv G 4% Queenland 7s°¢1. Read gn 4%s8 A '97., Read Jer Cen 4s'51 10 Rem R 5% 8 A 47 46 Rh: Roy D 4545 ww.. StL IM R&G 4s°33. 64 StL&SFindsA. StL&SF 4% 64% St L&SF pr In 88% 88% 100% 100% 83 83 Sao Paulo 8536 Sao Paulo 8s°69.., 3 Saxon Pu W 633s'61 21 Saxon 7s ‘46, 5 Seab A L rf 45’49 Seab A L 48 st ‘50 Solvay Am 53 ‘4 Sou Bel T&T § Sou Pac ref Squ Pag ¢%8 . YRStn Sn&T 6» 78 nently submit to the hazards of a sys- tem that perpetrates the wastes and risks involved in varrying a structure of ‘many billions of dollars of loans callable and renewable from day to day.” He acknowledges that a change to a term settlement plan should be under- taken graduslly, and points out that it would need certain safeguards to pre- vent excessive security speculation. , Tex & Pac 6sC Third Av ref & Third Av 1st 5: Third Av adj b Toho El Pow §: Tokio 534861 Tokio El Lt 65 53 %8 '67. 1 Un P 1st rf 55 2008, Unit Drug cv 68 ‘53 Utd King 5!‘: .. 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