Evening Star Newspaper, June 9, 1931, Page 14

TA_14 ¥x% FINANCIAL. BANKS ARE BLAMED IN BUSINESS SLUMP British Labor Chief Demands That Financial Houses Be Nationalized. BY JOHN F, Bpecial Dispatch to The . NEW YORK. June 9.—The demand that Great Britain nationalize its banks grows more insistent in the ranks of | the Labor party. Naturally the party's heads are not likely to press the point at the present time. unless some great crisis forces the issue, but W. H. Hutch- inson, president of the Amalgamated Engineers' Un‘on, has come out in favor of the move | In seeking reasons to explain the new support this idea is receiving in Great Britain today. one comes inevi- tably to the depression. It is widely held that the banks have been found wanting. Their credit policy is under fire. Chained by caution and self-in- terest, according to their critics, the banks have starved business and in-! dustry of the credit resources which are the life-blood of business. For th's reason, many business men | are to be found joining hands with labor. These men probably do not seek outright nationalization. but merely | want to frizhten the banks into a more | liberal credit policy. Among the Labor- ites, of cource, the motive is plain So- clalism. George Bernard Shaw recently told a labor group that tinkering with socializing industry was futile for “the bankers are the ones who rule the roost. Even in the United States, there has been much grumbling about’ the heavy mortality in banks and the ultra-con- servative po'icy of the Federal Reserve, What banking needs today. and what every other indust ying for, is vital leacrship New Five-year Plans, The Russians are formulating sched- | ules for a series of five-year plans. to follow the present one, which ends in 1933. Vice President Lmov e ‘state planning commission sees Soviet Russia supplanting the United States as the premier producer of coal, electricity, steel and other heavy indus- trial items by 1940, The huge Dnieperstroy hydroelectric power plant, which is being constructed under the supervision of the American engineer. Col. Hugh L. Cooper, is near- ing_completion and will be the largest in the world. But the Soviets are draw- ing_specifications for a similar project on the Volga River which will dwarf the | Dnicperstrov. By 1940 they expect to| be penerating, 00.000 kilowatts— | 40,000.000 more than the output in the United States today. The electric power system of the Soviet Union is probably the most vital part of its industrialization drive. Electric power is the bedrock. of the present industrial age. Lenin himself once represented the idea in the form of an equation. “Electrification plus; Sovict, power equals 100 per cent Social- | e While still taking the United States #s their technical model, the Soviets have swung_their electrical machinery orders to European countries, where they receive more favorable credit terms. The more continental equipment is used, the harder it will be for Amer- ican manufacturers to recover this huge | market later. Since the Russian elec- trification plans call for huge expendi- tures over the next 25 vears., the loss to America in this field is incalculable. Silver Problem. It looks as though the nations linked with the silver problem are going to adopt a policy of “passing the buck,” s0 far as doing anything about it is concerned. A resolution passed by the International Chamber of Cownmerce calls upon the governments involved to convok> a silver conference, but fails to_specify which one is to call it. The Unit=d States, despite its exten- sive interests in the question, due to her being a great silver producer and Asiatic trader, has consistently taken a non- Recelved Stock ana Sates— Dividend Rate. Plerce Ol Df.......0 Pierce Petroleum. . Pillsbury Flour (2).. Pitts Steel pf (7). . Torto Ric Am To(2). PRAm Tob B.. . Prairie Ol & Gas. Prairie Pipe L (3) Pressed Steel Cal Proct & Gamb i Prod & Refiner: Pub Sv N J (3.40) Pub Sv N 1 pf (6) Pub Sv N J of (1) Pub Sve G&E of (5) Pullman Corp (4) 515 Pure O1l. . 244 Purity B: 12 Iadio Corp .. 3114 Radio Corp B (5). 11'4 Radio-Keith-Oroh A. 11 17's Raybestos Man 2.60 Reading Ry (4).. Real Sili{ Hos(b10% Remington-Rand. .. Reo Motor Car (40¢). Republic Steel. . . Republic Steel f. . Revnolds Metals (2). Reynolds Tob A (3). Revnolds Tob B (3). Rhine W El P(a2.14) Richfield Oi Rlo Grande Ofl. ... Rossia [nsur (220).. 247 Rov Dteh(m1.2404) . T8% Safeway Stores (5). 14' St Joseph Lead (1).. 9 St Louis & San Fran. 15% St L-San Fran of (6) St L Southwestern.. Schulte Retail Stri % Seaboard Alr Line. .. Sears Roebuck $2% . Servel Inc....... Shattuek F G (+1%). Shell Unton OM1. ... Shell Un O11 pf (5%) Khubert Theater: Simmons Co. Simms Petroleum Sinclair Con Ofl (1) Skelly Ofl. South Port Rico Suf South Cal Ed (2). Southern Dairies(A) South Pacifie (§) South Ry (8). ~Prev. 1931~ 2 6 1 108 3 1 5 24 314 15% 20% 628 6 Spang-Chal pf (6). Sparks Withing (1). Spencer Kellog (80¢) Splegel-May-Stern. . Stand Brands (1.20). Stand G& E (3%). Stand O11 Cal (h2% Stand Oll of Kansas. 4 Stand OII N J (12).. 238 Stand Oil N Y (180). 347 Starrett (LS) (12%) 1 Sterling Sec A... 1 Ster] Sec cv pf (3). Stewart Warner. Stone & Webster (3). Studebaker (1.20) Sun Ol (11 Sun Ol pf (6). Superheater (233). Superior Ofl. Superior Steel Symincton Tennessee Corp(s0c) Texas Corp (2)..... Texas G Sulphur (3) Texas PC & OIl. . Texas Pac Land Tr Thermold Co 1 74 26 138 1 5'4 Third Avenu Third Nat Inv(m5ic) % Thompson Prod 1.20. Thompson Starrett. . Tide Water As (60c). 35 (Continued From Page 13.) Add 00, High. Low. Close. Close. 10% THE EVENING STAR, WASHINGTON, D. C., TUESDAY, JUNE 9, 193V, by Private Wire —rrev. 1931~ High. Low. 68 38 54 Prev. 10% 1% 274% k8 12 3 9% 1815 105 10 14 27% 45 12% Timken Timken Und- 11 Union ¢ Unit Cai Unit Co unit Fr US Fre S Ind 20% 361a 25% 162% 150 T 99y 110 s 8 s s 8 s s U U U U u u u u 3 Univ Pi 31 19% Ut P& 6% 3% 17 71% 4| 109 | 1w 26 27% 15 20% T 464 188 108 92 112 103 11215 10314 9% 9 150% 3614 1073 1191 2% 40 614 1 Va-Car 714 Va-Car 591y V 38's Vulcan 141 2213 Warren Westy White White I Wilcox Willys- Willy Wilson 3%, 44 1 Bam 37 66% 76 78 29 42 3915 Yngstw 1415 You 13% 11 Dividend rates as eiven in the above table ure the annual cash payments based on thy *Unit of trading less than 100 shares. §Pasable In s in stock no regular rate | £Plus 8% in stock | 1 Plus 50c in special preferred stock. 54 | this year—no regular Sound Practice Stres tacts With Depos committal stand. Great Britain fears repercussions in India, where her finan- cial tactics are deeply resented. and FPrance, while interested in Indo-China, is not likely to take the initiative. One country in the world is eager and willing to start the ball rolling, but she can't. because . she hasn't sufficient weight in world councils. That country 1s China Nevertheloss, this vital problem can- not be lost in the international diplo- matic shuffie forever. Book Production. After a year's trial, mass production of low-priced books, and advertising policy. came up for review recently be- fore the American Booksellers' Asso- ciation. In the main, the dollar books are loocked upon as successful. Long intervals betwesn the issue of the criginal standard priced edition and the dollar reprints were asked, with from one to three vears suggested. With enough time in between, the dollar books | would actually be bought by those who | would or could not pay more. A lively attack was made on the publishers’ and sellers’ method of ad- vertising by Maj. I. D. Carson of N. W. Ayer & Son. “Your advertising.” Maj. Carson said, *'should appeal to the girl in the 5-and- 10-cent store as well as to the intel- lectual. If you will disguise your copy more, a larger body of readers will notice it. Now thev pass it by, recog- nizing it as a typical book advertise- ment.” “Stand by" Periods. Doldrums in the shipping industry has resulted in an_ interesting innot tion A considerable part of the losses sustained by passenger steamship com- panies in slack times is due to the “stand by"” periods. As such es the ship lies idle at the wharf, eating up money in maintenance and deprecia- tion, wita no income to offset losses. The Cunard Line, therefore, is al- ready busy with its' week end cruises from New York out into the Atlantic and back. ‘ihe fees are quite moderate. This move has been followed and elab- orated upon by the French Line with a series of six-day cruises during the Summer, from New York to Bermuda, to Halifax, and return. This new fea- ture has proven good business, for the public has responded enthusiastically. The soundness of the scheme has not escaped the attention of the British maritime leaders, and_similar _cruises are planned for the English Channel, via London and stops at French port Thus, a line operating between Amer can and British ports would be able to put the “stand by” time at either end to a profitable use. At the same time, lots of people are going to get a great deal of benefit and fun out of this new form of “travel.” (Copyright, 1931, by North American News- paper Alliance, Inc.) COAL PRODUCTION. By the Associated Press. Production of bituminous coal during the week ended May 30 slumped 162,000 tons, or 2.4 per cent, as compared With the previous week, the decrease being | due to obscrvance of Memorial day. Total output for comparable periods as compiled by the Bureau of 6,466,000 tons Previous week. .6,628,000 tons Same week last year - Chicago, Burlington & Quincy. NEW YORK, June 9 (#)—Net oper-! ating income of the Chicago, Burling- ton & Quincy Railroad for May is esti- mated at $1444.000, an increass over the $1,007,562 reported for the like month’ last year. mate for May, the t-tal for the first five months this vear would h> $3,943,000, compared with $10,934,417 for the cor- responding period of 1930. .7,590,000 tons ! Including the esti-| Special Dispatch to The Star. PITTSBURGH, June 9.—Two thou-| i sand bank officers and employes from all sections of the country are here for the | twenty-ninth annual convention of the | | American Institute of Banking, the| { educational section of the American | | Bankers' Association, - conducted for | | the purpose of training bank workers of | | all classes in sound and efficient bank | { methods all the way from clerical Tou- | {tine up to executive policies and ad- | ministration. The institute has 73,000 members in 300 cities of the country | and conducts 223 local banking schools | | attended by over 43,000 students. The | | convention itself consists for the greater | | part of intensive conference discussions | | of various-banking problems and operat- ing practices. These got under way this afternoon | In eight simultaneous departmental | conferences papers covering a broad | field of practical bank work were the | basis for special discussion. The sub- | jects put under consideration were | audits and accounting, bank adminis- | tration, business development, advertis- ing, credits, deposit functions, invest- | ments, investment banking, savings banking and trust functions. Selling Banks. ! In the departmental conference on business development and advertising, | of which R. E. Hotze of Edward Bird Wilson, Inc., of this city, is tife leader. | J. A, Avary. jr. of the First National | Bank of Atlanta, remarking that Pitts- {burgh had “given to the world its master salesman, Charles M. Schwab, talked on “Selling the Bank to the In- dividual and Corporation.” He said the personality of the bank is just as im- portant as that of an individual and its success or failure is dependent upon this more than anything els: “Advertising alone cannot permanently sell and build the bank,” sald Mr. Avary. “Regardless of mass cont{ct through the billboards, magazines ~ and local papers, and through a direct-by-mail campaign, if these are not backed to the fullest by the proper functioning of the bank, they soon lose their impor- tance.” too often meant, he said, “giving the bank,” adding, “our fleld is highly com- petitive, but unless we charge for the services we render, we cannot long oper- ate. If you give exceptional services, you have a right to charge for them. It doesn't matter how much business vou get, it isn't worth a cent unless you can show a profit on it.” There is no substitute in a bank de- { velopment program for personal con- | tact, Wallace L. Robinson of Farmers' Trust Co., Lancaster, Pa., told the con- ference. Newspaper advertising, direct- by-mail and other forms are merely the barrage beyond which the active solicitation for business building must jadvance and the “officers and employes | Who are on their toes are your greatest |asset,” he said. Newspaper advertising ispace should be used to convey a definite story, he said, since the ultimate goal of a bank is dividends and not PRACTICAL WORK IN BANKING DISCUSSED AT A. | Boston, Robert J. Rendall, Some methods of “selling the bank” | I. B. MEETING sed as Best Asset for Financial Institutions—Personal Con- itors Are Urged. savings banking, led by Lindly A. Bond. assistant treasurer Home Savings Bank. president Hudson City Savings Bank, Jersey City, N. J, sald that a great deal of success of a locality is dependent upon the wis- dom end justice of those directing the local bank which has “the opportunity of being the controlling force in the | commerce and civic life of its neighbor- hood,” and the selection, character and caliber of those represented on the bank's payroll is therefore of the great- est importance to the life of the insti- tution. The president of a bank, Mr. Rendall said, in all he thinks and does is advertising the caliber and tempera- ment of his institution and; if he mea- sures up to the average standard of American citizenship, “I guarantee that such a man will succeed by his own in- fluence in making the great majority of those who serve in the bank useful, honest and upright employes Public Confidence. Public confidence is founded cn good management, said H. H. Reinhard, vice president Mercantile-Commerce Bank & Trust Co., St. Louls, declaring that public confidence is the very foundation stone of all successful banking and bus- iness enterprises. He said that good management “incorporates the well de- fin~d principles of prcducing maximum service at a minimum cost, building along the lines of conservatism, di- versification, liquidity and stability. the bold adoption of charges for service rendered wherever necessary, the co- operation with other banks in the es- tablishment cf credit bureaus and clear- inghouse groups and the cultivation of that indispensable asset, Never in the history of banking had the word “liquidity” assumed such vital im- portance as in the past 15 months, he said. when its degree “often spelled tife difference between success and failure.” No safeguard yet discovered is so sal- utary or possesses such force of re- straint against impulses to dishonesty as the check of one man against an- other, declared F. L. Whittier, auditor, Fidelity Savings Trust Co., Kansas City, in discussing “Audit and Control of the Savings Department.” He said that in his opinion any bank which hes in oper- ation any savings control system in which any cne man controls all of the records which will complete a transac- | tion is inviting disaster as surely as a | man investigating the contents of a gasoline tank with a lighted match. In discussing real estate bonds at the departmental conference on investments and investment bamking, Julian W. Tyler, secretary, E. G. Tillotson & Co., Cleveland, said this class of securities had suffered from the public conviction, nourished over a long period of years, that real estate is the safest form of investment. Charles I. Norman, vice president Highland Park State Bank, Highland Park, Mich., was leader at this conference. An element that must be emphasized in real estate financin, declared Mr. Tyler, is earnings, as here- tofore there has been tco much reliance upon well intentioned appraisals as to value, Other elements that must re- | celve a new emphasis, he added, are the economic need for the improvement, a greater margin of safety and a mcre merely spreading its name broadcast ! regardless of cost and money return. Fred W. Thompson, First Merchants’ told the con. business. Discussing “Obtaining Leads and Their Successful Follow-Up,” he said almost any type of contact with the public may lead to new business if the bank man. is wide awake and tactful, telling of an insurance man in New subway, or step on his foot, and then, after apologizing profusely, make friend of him and sign him up for in: surance. In the departmental conference on York who used to jostle a man in the| liberal allowances for vicissitudes. He | said he hoped that real estite bonds will te divorced sc far as humanly pos. sible frcm operailons that are specula- i tive and will be sold orly by these whose experience in loaning ey upen real | estate security entitles them to assume i the grave responsibility invelved in the | marketing of any investment. | Other Papers. Mr. Tyler said that in time real es- tate will return to the “prcud -place | once deservedly occupied by 1f. as the premier investment,” declaring this to be a desirable consummation, for “it makes for a steadier and healthier citi- Stock a; Dividend Tide Wat As pf (8) Tide Wat Ofl pf (5).. Tri-Cont Corp. . Tri-Cont Corp pf (6) Trico Products(2%). Truscon Stl (§1.20).. Ulen & Co (1.60). ..., Un Ol of Cal (2). Un Pacific (10).. Unit Alrcraft. Unit Afrcraft pt (3).. Unit Cigar Story Gnit Corp pf (3). Unit G & Im (1.20) Unit G & Im pt (5) Unit Piece D W (2) U S & For Secur. Leather A.. . Pipe & F (2)...0 P &F 1st (1.20).. Realty & Imp(2) Rubber. Rubber 1 Smelt & Ref (1). ) S Steel (7). U S Steel pf (1) U S Tobacco (4.40) Unit Stores A. . Univ Leaf T pf (8) S Vadasco Sal 23% Vanadium Corp'n 'ar Chem pf (7).. 98% Va Elec & Pwr pf(§) Wabash LK. ... Waldorf Sys (13%). Walworth Co. . Warner Bros Plct. Warner Quinlan..... 1 Warren Bros (3). West Pa EI pf (6). West Pa I pf (1) West Pa Pow pt (8). 2008 Western Md. .. Western Union (8).. Westing A B (2). Westing EI&Mfg (4). White Sew Mach pf.. Woolworth (2.40). Worthington Pump.. Wrizlev (Wm) (4).. 6% Yellow Truck. Yellow Truck 2% Zenith Radio Zonite I'rod Corp (1) Sales of Stocks on New York Exchange. b Payable in_ stock. good will.” | NEW YORK STOCK EXCHANGE Direct to The Star Office. Bales— Add 00. High. 143y 1 65 1 35 7% 9% R 94 a3 18% 10% run 501 194 155 Det Ax (30¢) 256 Roller (3)... 15 23 Fisher (5).. Th& C2.60.. 15 rbon '3 20 48% 56 27% 104 23'% @ 16 20 o 22 18% 15% 12 21% 15 89 141'% 67 4% i 1051 31 21% ro (76c) uit (4) ight. . .. us Alcohol(2 of. c 1st pf (8) L A (et2.15 % 29% 11y 81 60 1055 43 Chem. .... Chem 6% »f.. 1 10s 10514 105 45% 43% 11 11 26 244 6% Det 2 11 1 4 15 2 108 1108 Fdy & P (2). 3 17 4 ] co Chlor (2).. fotors (1).... Rock MS 1434 16 29 6% 8y 49 1% 678 44 Tin s 4 011 & Ga Overland. .. Over pf (7) #Co.... . 107 54 31 €08 1 1 7315 Aia a“ 47 19 12 n Sh&Tu (2 Surine (3) 1 . 200000 1 . 1,400,000 00 Noon. 10 P.M. . 900,600 + 1 600,000 e latest quarteriy or hali-yeari 1Partly extr Plus 9% in stock. eP e Payable in in stock. hPlus 2 k Plus 3% in stock. n Plus 8% in stock. ip. € Plus 6% rate. | zenship when people are land-minded | rather” than stock-minded.” Other papers presented at this con- ference were “Relation of Investment | Department to Trust Department,” by | Dr. Ralph E. Badger, executive vice | president, Union Guardian Trust Co., | Detroit, and “Pros and Cons of Sales to Customers,” by William N. Pope, vice president, First Trust and Deposit Co., | Syracuse, N. Y. 1 The ethics of credit investigation, like the ethics of business, consist in | nothing more than the application of | sound moral principles,” said Harvey | L. Welch, manager of ‘the credit de- | partment ‘of the First National Bank | in St. Louis. in his address before the | departmental conference on credits, | which was led by Meltille M. Parker, | secretary, United Security Trust Co., | Philadelphia. “Unless business men adhere to and accept some sort of standard practices, sound co-operation is impossible,” Mr. Welch said. “In seeking and giving credit information, all those involved should realize, first and foremost, that they are acting as trustees for other people. Most of the | information which they have to give, and which they obtain, is given in con- fidence, and unless all parties accept| certain standards of conduct with re- | gard to this information, they are vio- | lating a trust and are undeserving of any consideration. Prcfessional ethics | in"the field of credit are just as im- portant as in the field of medicine | or law. Until credit men fully realize their responsibility in this connection. | they can never hope to achieve the full possibilities of their profession. In | simplest terms, the ethics of credit in- | vestigation are a practical application of the golden rule.” Other special papers presenting topics for discussion at this conference were | “Moderate-sized Credits and the Amor- tization Type Loan."” by Joseph E. Birnie. assistant cashier Morris Plan Bank of Richmond, Va., and “The Credit Risk in Collateral Loans.” by Alan G. Warner, assistant vice president Chatham Phenix Bank & Trust Co., New York. | _Subjects discussed at the depart- | mental conference on bank adminis- tration were “Better Bank Management | Through the Control of the Invisible Assets,” by -A. C. Hoffmeier, deputy examiner Cleveland Clearing House Assoclation, ~ Cleveland; “Keeping the Bank Liquid,” by Raymond O. Dexter, vice president Second National Bank, | Boston, and “Costs in Banking” by | Charles Zwingli, First National Bank | of Chicago, Harry H. Hahn, vice presi- dent and cashier National Central Bank, Baltimore, was the leader at this con- | ference. Importance of Auditors. The position of auditor in a bank is’ today one of the most essential to a | Seasoned investment issues of the car- well managed institution, the conference on audits and accounting was told by Frank V. Grayson, auditor Federal Re- serve Bank of Cleveland. Audit work demands men of the highest type, said Mr. Grayson, and now, as never before. are thinking and up-to-date auditors sorely needed. He said that the best advice that can be given to any one entering the banking business is to join the local chapter of the American Institute of Banking and take up the prescribed study courses. In a paper on “Trust Department Auditing,” William H. Lindsay, con- troller Provident Trust Co., Philadel- phia, emphasized the necessity of clarity and legibility in recording transactions. “Income Tax Problems of Banks” wi discussed by R. D. Bond of R. D. Bond & Co., public accountants, Detroit. Arthur J. Linn, controller Federal American National Bank & Trust Co,, iwashington, D. C., presided at this con- ference. Howard Ritter, auditor Federal Land Bank of Baltim:re and Federal Inter- mediate Credit Bank of Baltimore, led the discussion at the departmental conference on deposit, functions, at which the following papers were pre- | sented: “The Transit Department and | Some of Its Problems,” J. R. Evans, | maneger transit department, Indepenc | ence Trust Co, Charlotte, N. C. i“Prablems in Connecticn With the { Hand!ing of Non-Cash Items,” J. Bick- |ley Jackson, manager collection de- ! partment, Philadelphia National Bank, Philadelphia, and “The Gold Wire Set- tlement Fund,” John. A. Johnston, assistant cashier Baltimore branch | Federal Reserve Bank of Richmond, Va. ‘Tomorr:w there will be three con- ferences, beginning with breakfast at 8 am. and lasting until noon. Henry Verdelein of. the First Securities Cor- poration, Minneapolis, will preside at BONDS ARE HIGHER IN ACTIVE BUYING Foreign Dollar List in De- mand-~German Group Continues Weak. BY F. H. RICHARDSON. Speclal Disgatch to The Star. NEW YORK, June 9.—Bonds moved substantially higher today, especially foreign dollar descriptions. The strength of the foreign list was attributable to a general tone of opti- mism as a result of the broad hint from ‘Washington that the United States Government would view favorably the modifying of war debt funding agree- ments provided a substantial reduction in the armaments of the Continental powers is agreed upon. German issues were weak at the start because of overnight advices of a movement for immediate reparations revision and the announcement that France would oppose the linking of debt reduction to disarmament. But more mature consideration of these events put them in their true light as preliminary jockeyings and the German list rallied. Young Plan 5!5s, Reparations 7s, German Central Bank bonds, munici- pals_such -as Berl'n 6s, Cologne 6'is and Prankfort 6155 turned upward, some | of them sharply. The trading in the Young Plan bonds was particularly heavy. Some improvement in commodity prices and in South American exchanges was reflected in a sharp demand for Argentine, - Chilean, Brazilian and Co- lombian credits. Argentine 6s. which recently sold down around 65, were most of the tim~ at 83 or better. Chilean 6s and Brazilian 6's. 7s and 8s moved ahead. Sao Panlo Coffee loan 7s gained only fractionally, but Sao Paulo 8s ®ained 4 points and City of Sao Paulo s were a point higher, Australian bonds were quiet, but price changes revealed an upward trend. Cables from Melbourne sdvised that the conference of state premiers, federal ministers and opposition leaders had agreed on a drastic economy pro- gram in order to prevent national de: fault on indebtedness. Another bullish argument was that suggestions to force bondholders to accept lower interest rates on outstanding issues by threats of penal taxation were abandoned. This was feared for its possible effect on Australian exchange. The sdvance extended to funior do- mestic issues, notably the obligations of the railroads. Frisco 4'.s, Erie 5s. Mis- souri Pacific ‘5s, Chicago & Northwest- ern 435, Pennsylvania 6!,s. New York Central 4'is, Southern Rallway 6'.s, St. Louls Southwestern first 4s, and Chesaprake Corporation 5s all improved. riers were firm. Washin;non Stock E;change ” SALES. . Washington Gas 4':5—$1.000 at 100%. Washington Gas *A"—$2.500 2t 103. Potomac_Electric 6% pfd.—5 at 113, 5 at 1127,. Potomac Electric 5'2% pfd.—1 at 1101}, AFTER CALL. Capital Traction Co.—10 at 353, 10 at | 35'3, 10 at 35'. Potomac_Electric 5'; % pfd.—5at 110'%. City & Suburban 55—$1.000 at 73. Bid and Asked Prices. BONDS. PUBLIC UTILITY. Asked Amer. Tel. & Tel. 4'as '39 Sanan Am. Tel. & Tel. ctl. tr. 5s Anacostia & Pot. R.R.'Ss. .. Anacostia & Pof. Guar. 55 : C & P. Tel. of Va. s . | Capital Tiaotion R. R. 85 City & Suburban 53 Georgetown Gas 1st 55000 B Potomac Elec. cons. 8'c...... ! Potomac Elec. 65 1953 Wash., Alex. & Mt Ver. Washington Gas 4'as Washington Gas : w Gas 65, series A Wash. Gas 6s. series B Wash. Rwy. & Elec. 4s. MISCELLANEOUS. Barber & Ross, Inc.. 6'as. Chevy Chase Club 5.5 Columbia Country Club §ias D. C. Paper Mfs. 65 W. M. Cold Storage 35 STOCKS. PUBLIC UTILITY. Amer. Tel. & Tel. (9). 7 i Capital Traction Co. 3 ELIN Washington Gas Lt. 'Co. (181 . | N. & W. Steamboat (12) 201 | Pot. Elec. Power 6 pid Pot. Elec. Power 5'2% pid Wash. Rwy. & El com. (1) Wash. Rwy. & Ei pfd. (5. NATIONAL BANK. et Capital (14) Columba (12 T Commercial (stamped) (10 District (8)... e Fed.-Am. Nail. Bk & Tr. (2 Liberty (741 T et Lincoln (121" Metropolitan” '(14) Riggs ( s Second _(9e) Washington (13) TRUST COMPANY. Amer. Sec. & Tr. Co (15).(... 205 310 I Continental Trusi (6). 3 : Natl. Bav. & Tr. (12:) Prince Georges Bk. & Tr Union Trust (8s) : Wash. Loan & Trust (i} SAVINGS BANK. Bank of Bethesda (6%) Com. & Savings (10) East’ Washington (12 Potomac (10).......". Sec. Sav._& Com. Bi Seventh Street (12) United States (30) Wash. Mechanics (20} FIRE INSURANCE. American (12).. Viasaen Corcoran (10 e Firamen's (8.0 'l National Union {i$).01110 : TITLE INSURANCE. Columbia (6h) . Real Estate (6h) MISCELLANEOUS. Barber & Ross. Inc.. com. Col. Medical Bidg. Corp. Col. Sand & Gravel ptd. (1) Dist. Natl. Sec. pfd, (7). . Emer. Bromo-Selz. “A Federal Storage pfd. (8). Fed.-Am. Co. com. (1.70f} Fed.-Am. Co. pid. (8) Lanston Monotype (8 Mer. Tr. & Stge. com. Mer. Tr. & Stge. pfd. ot Mergenthaler Linotype (6):... . Natl Mige. & Iov. ofd, (8. 00 Peoples Drus Stores pfd. (6} Real Est. M. & G. pfd. Security 'Storage (de) Ter. Ret. & Wh. Corp: The Carpel Corp. (1.50c) W. Mech. Mtge. com. (6 Wash, Med. Bldg. Corp. (s} Woodward & Lothrop com. Woodward & Lothrop pfd. *Ex dividend. et bBooks closed. 527 ‘extra. c€30c extra. y21a% extia. n25c extra. "3 130 extr 1% extr extra. By the Assoclated Press. ‘The tariff war between New Zealand and Canada, both British possessions, became more acute last week when the preferential rate was removed from all Canadian imports into New Zealand with the exception of a few products, including motor vehicles and engines. Shipments of other products were thus made subject to the general tariff duties, applicable to imports from the U United States and other non-prefer- ence countries. In effect, the change constituted an average increase of 20 to 25 per cent ad valorem on Canadian imports in- asmuch as that is generally the margin between the preferential and general rates. The existing preferential rates to other parts of the British Empire continue unchanged. a chapter administration conference. There will also be a chapter publicity conference, with Aubrey O. Docley, Federal-American National Bank & Trust Co., Washington, presiding, and William A. Polk, Bank of America Na- tional Trust & Savings Association, Los Angeles, will preside ai $he public speaking conference. ON FINANCIAL. Received by Private Wire Direct to The Star Office . UNITED .STATES. (Bales are 1n $1.000.) Lo 2-4 Higl . Close. 2 102 20 102 20 102 20 D24 10314 103 14 103 14 L4th4%s33-38 126 104 30 104 28 104 28 US3%s 40- 3%s 4347, %8 46-56, +. 26 102 29 102 27 10228 3%s41-42,., 15 10231 102 31 10231 5103 4103 4103 4 10 107 10 107 10 107 10 .. 10 10913 109 11 109 11 .30 114 Sales. High. AbItibl P & P 5363 Adams Exp 4s'48. . Allegheny 53 °44. Allez Corp 65 ' Allis-Chalm 5 Am Ag Ch 7%3 41, Am Chain 6333, Am F P 63 2030 Am1GCh5%s Am Int Cp6lgs ‘49, Am N Gas 6%s"42., Am S&R 1st 5847, Am Sug Ref 6s'37.. Am T&T cv 4%8'39 Am T&T 58 °65..... Am T&T c tr 5s '46. Am T&T bu 8 £60.. Am W Wk 58 '34. .. AmWat Wk 68 '75., Am Wr Pap 65°47.. Argentine 55 '45. Argentine 53s '62. Argentine May ‘61, 26 4T% 6% 6814 59% 101% 108% 101 6% 9814 Argentine 6s Ju '59. 3 Argentine 6s A ‘57, Argentine 6s B '58.. Arm & Co 4%s'39.. Arm Del 515843 .. Atchison gen Atchiscv 4%s 41 Atch Ariz 4%s 62, AtCL 1st4s'62. AtCL4%s’6 At Ref deb 6 '37. Australia 43 s ‘56 Australia bs '65 Australia 6357 Austria 7s'43 & Austria 7557 ctfs. Ban & Aroos 4s ‘51, Bk of Chile 645 '57 Bk of Chile 6%3 61 Belgium 63 '55 Belgium 615 " Belgium Belgium 7s ‘66, Bell Tel I'a b5 B 48 Berlin Cy El 6s Berlin 'y Beth s Bolivia 7 Bolivia 85 4. Bordeaux 65 '34 Bos & Me 55 ‘67. Brazil 6143 '26 Brazil 648 Brazil s. .. Brazil 8s 41 Eremen 7s'35. Bk Ed gn A 63 Bklyn Elev 6% Ekiyn Man 6: Bklyn Un 5345 Bklyn Un ist 6 Budapest 65 112% 105 9% 8644 100 101% 51 % 58 107% 86% o814 1001 K91y 106% 101 100% 108 103% 913, 635 65 104 109% 115% 110 108% 678 Buenos A 6361 I'v. ¢ Calif Packin Canada 43 ‘6! Canada 4 Canada 5s n Nor 413835 n Nor 7s deb 40.. ‘an Pac deb Can Pac 4158 '46., Can Pac 4138 '60 Can Pac bscifs '44. Can Pac 5s Cent Pac 43" Cent Pac bs '60. Cert-td deb 55 s Ches Corp &5 " C&Ogendlys'9z. . i C&OshsA C&O4lasB Chi & Alt 3s. CB&Q4lss C B&Q 11l dv 45 49, Chi Grt West 4s ‘69 Chi M & St P 4559, Chi M&SUP 4335 E Chi M SU&P b5 ‘75 Chi M & St P adj 58 ChikNW g 3145 C&Nwn 4138 ¢ Chi & NW con 4%s. Chi & NW 6138 ChiRI&Pr | Chi R1&Pac 47 |C& W inucv s C& W Indo%s Chile €3 '60. Cologne 65 “olomb 65 Jan 61.. Colombia 6s ‘61 Oct Colon il 65 '38. Colo & Sou 4138 Col G& bs May. Com Inves 538 "45. CCMd istrfbs Con Pwr Jap 6% Con Pow Japan 7s.. Copenhag 445 '53.. Copenhag b5 52 Cuba 5145 45. Cuba RItrf 1345°36 3 Cuba Nor 545 ‘42 Czecho 88 51.... Del & Hud rf 4s'43, jDel & Hud 5%s Denmark 443 62.. Denmark 53 55 Denmark 6s 42.. nver Gas 5851 D& R Gr gn 4s '36. D& RG W bs'65... DRG & W stbs'78 Det Kd G& 4% Det Edison rf Det Unit 4145 '32 Deutsche Bk 6s '32. Dodge Br cl 68 '40.. Donner St s '42 Duquesne 4%s '67. Dutch East I Mar. . Dutch East | Nov Dutch East 16s'4 Dutch East 1 65 '6; Erle 15t con 45 '96 Erle Gen Eriecv Erie 58 '75. Erie & Jer 63 '56. Flat7s war Ftat Ts ex Finland 5%s '58 Fmiand 7s ‘b Kla K Coast 55 ‘74 Fram 1 D 7%s"42 French 7543, French Gvi7%s "41 Gelsenk'chen 63 ‘34 Gen Motors'6s '37. . Gen P Sv 5%s ‘39 Gen Th Eq German 5% German Bk 6s '38. . Ger Cen Bk 6560 J Ge:man Bank 7s ‘60 German 7s rep 49.. Ger Gen EI 78 45... Goodrich cv 63 '45. Good 1st 6% Goody'r Rub 58 GrandTr sf db 6s'36 Grand Trunk 7s ‘40 Grt Nor 43876 D. 3 £9 2 29 1 43 1 7 1 Grt Nor 4%s°77 £. 116 Grt Nor gn 6% 6! Grt Nor gen 78 "36. Greek 6 HavERL&P 5s Hoe & Co 643 34 Hud & M ad) 685 Hud & M rf 58 ‘57 Humble O1l 53 ‘37. Hum O&R & Hungary 7% IBTIistpfésa.. LICent 48 53..0000 2 63 8 6% 11330 113 30 Low. Close 47 B6% 68 58 101% 103% 100% 75 98 85 12 101% 104% 12019 108% 106 108% 110% 10215 104 57 70 100% 112% 105 97% 86% 109 1011 50 56 58 10714 =6 o8 9474 ®R% 106% 101 100 108 105% 911 6215 65 103% 1097 115% 109'5 1083 47T K6% 68 59% 101% 103'% 101 100% 101% 101% 103% 106% 10615 111 Cent ref s 111 Cent 4% 5 66 11 CCSIL&N BS A. . Inlard Stl 45% B" Int Rap Tr b Int Rap Tr 65°32.,. Int Rap Tr 78°32, .. Int Cement 63 48 Int & Gr Nor bs ‘5| int Hydro El 6s Int M Co 55 rc Int Maich 58°47... Int Pap 63 A 47.... Int Pap 6s°55...... Int RysC A 53’3 Int T& T 4%5'52 Iat T&T cv 4343 Int T & T 6855, Irish Free St £s ‘60, Italv 78 '51. . Italy Cr't PU 78 italy Pub Sv 7, Japanese 61 s Japanese 6% Jugosl Bank 7 Kan CFtS&M 4 Kan City Ter 45 '60. KanG & E 4% ‘80, Karstadt 65°43. Kreug & Toll 65 59 Lackaw St 65 ‘50 3 Laclede 5345 C ‘53 Lake Shore 3%s '97 Lautaro Nit 68 ‘54.. Leh Val cv 45 2003 4. Long Isi rf 4s " Long Isl db 55 Lorfllard 5% Lou G & El L& Nuni4s'40 .., L &N 4%s 200; L&N1strf5ls. Lyons 6s'34. McKes & R 5%s 50 Manh Ry 1st 4390 Market St 75 40 Marsellie 65 ‘34 Midvale Stl 58 Milan 63%s ‘62 M1l E Ry & L 51 M SIP&SSM 6%48. . MK & T 1st 4590 MK&T4sB 62 MK&Taijss Mo Pac gen 4 Mo Pac b3 F “77... Mo Pac 53 G 'T Mo Pac bs H '80. Mo Pac ref 53 '81. Mo Pac 5%scv ‘49 Mont Pow 53 '43 Mont P db 6s A ‘62 Montevideo 65 '59. Montevideo 7s ‘52 Mor & Co 1st 4% t Dairy 53848, at Rad 6% 47 Netherlands 6s N Eng T 1st 58’5z, New S Wales 63 57 ew S Wales 63 ‘58 YCgnits'or.. Y Cent db 4534 Y Cen 4s'ss..... ¥ Cen rf 41352013 NYC re im 65 2013, N Y Cent db 68 °35.. NYC&StL4s" NY C&SIL 438 NYC&StL6s32. NH&H 3158 "54. H&H 45 65 NY 3 .34 9 24 59 72 5 29 12 1 21 11 13 16 1 10 4 5 27 1 93 Y NH&H 4%s 67, NH&H clt 68 NH&H cv db 68 O&W 1st4s’92. Y O&W &n 45°55. Y Rys Inc 6s 6. N Y Tel 413839, N Y Tel 6341, N Y Tel 63 49 NY W&B ¢%8 ¢ ord 638 '50 No Am Co 55 Nor Am Ed bs Nor Am Ed 5 Nor Pac r1 63 2047. Nor St Pw 68 B "¢1. Norway 53 ‘63 Norway 5%n Norway 65 '43. Norway 65 '44. Norway 6s°'52.... Ortent dev 51 58, Orient dev 65 53 PacG & Kl 5542 Pac T&T 15t s 37, Pan Am Pet 6 Paramount 65 °47.. Paris-Ly M 6s Paris-Ly M Penn 4s ‘4§ Penncy 414560, Penn gen 413 65.. Penn 415870 . Penna 4%s D'81.. Penn 4% s 63 - Penn 6145 '36 Penn O&D 435 Peoples’ Gas 5s. Pere M 1st 4s Pere Mar 4135 80.. Pere A 1st 53 ‘56 Peru 6s'60. . Peru 7s'59.. Phila Co bs Pnila & Read 6349 Phi}lip Pet 538 * Pillsb F M 6s PCC&SIL 43387 Poland 6s '40 Poland 7s " Poland 88 50 ..... Port Gen El 41560 Pos Tel & C 55 33.. Prague 7148 '52. .. Prussia 65 ‘52 Public Serv 4s PubSv G 4l 67.. Pub Sv G 4%8°70.. Pure Ol 53 '37 Rend gn 4% 8 A 97, Rem Arms 63 A "37. Rem R5%s A '47.. Rhinelbe is 46.... Rhine West 6352, . Rhine West 63 'b3. Rhine West 6s 'f Rthine West 78 '50. Kich Oll cal 68°44. ., Riode Jan 6% s ‘62, Rio de Jan 8s '46... B Gr De Sul 63 '68.. Rio Gr W 1st 4839, Rome 614352 Roy Dds'45 w SIL IM R&G 43°33.. StL&SFin StL&SF4% St L&SF pr In StP Un Dep 58'72 Sao Pau 78’40 rets, Sao Paulo 8s°36... 3a0 Paulo 83 '50. Saxon 7s'46. Seab A L Sea All F Selne 7s"42. Serbs-Cr-S1 7 Serbs-Cr-S Shell Un Of1 6: Shell Un Ol 55°49. Shinyetsw 6% " Sinclair Ofl 68’38 Sinc O Tscv A'37.. Sinc Cr O 6%s '38.. Sinc P L 58'42..... SW Bell T 65 A '54.. Sou Bel T&T b8 "41 Sou Pac coi 4 Sou Pac ref Sou Pac 4%s5 6 Sou P 43%8 69 w: So Pacific 4148 '81.. Sou P&OUr 4% '77. Sou Ry gen 56.. Sou Ry 58'94 Sou Ry 634 St Ol N J b8 StOfl N Y 438 51, Swiss b8 46, Tenn El P 65 A "47. Tex Corpcv ba 4. Tex & Pac 58 B'77. Tex & Pac 6s C Texas Pac 6s D 80, Third Av ref ¢s°60 Third Av adj 5= '60. Toho El Pow 78 Tokio 55 '52 Tokio 518" E Tokio El Lt 68’ 53. . Un'Faztat (b 7 UnFacrt 49, i ’ » e Sn aBuanuiBassmmmacReeklos manxB el elnen " - o ParaBlocen BI% 971 10674 80% 92% 9T% 9814 55 90% 1031, 1038, 1004 B4t 43 87 103% 108 96 95% 103 95 107% 99%, 98 10374 105 6315 5 100% *2 9514 86 High. Low. 80 751 871 89% 967% 106 80% 92 9714~ 981¢ bl 893 103% 10315 10015 Ba 42 86'% 108 94% 85's 101151011 88 Ny Close. 80 5% 878 92% 70 % 60 92 83 943 1021, BB 104 * | for_bankers' accep! 9 | Jard, | sacks e vone BONDSmoeexensscs] INEW BILL POLIY AIDS RESERVE BANK U. S. Agency Now Has Bets ter Control Over the Money Market. BY DAVID LAWRENCE. Just two years have elapsed since the Federal Reserve System put into effect its policy of buying bankers' accept~ ances or bills as a means of easing Lhe credit. machinery of the country. Looking back cver what has happened, satisfaction is expressed here that the method of purchasing bills by the Fed- eral Reserve banks has afforded an op- portunity for elasticity, wnich has now been coupled with adjustments in re- discount rates in such a way as to give the Federal Reserve a better control on the money market than it has had since the system was creaved Back Bone of Financing. . _Two years ago controversy was rag- ing in the banking world as to whether a raising cf the rediscount rates would end speculation and cause deflation The Federal Reserve Board was reluc tant to agree to an increasing redis- count rate and did so only by introduc- ing at the same time a bill policy which was intended to make the whole credit j machinery of the country function more smoothly. Bankers’ acceptances in the last two years have grown in usefulness and, while there is not much going on in foreign trade now, the same bills will undoubtedly be the backbone of foreign trade financing when the revival in trade dces materialize. The easy-money policy of the Fed- eral Reserve took on more definite pro- portions shortiy after the October, 1929, stock market decline, until now it e aggressively carried on, in the hope of stimulating “he bond market and as- sisting in the general revision of in-, terest rates. The Treasury Department has un- | questionably benefited by the low money rates, because its issues have been brought out at a great saving in inter- est over previous Government borrow ings. It is still conjectural as to what has been accomplished in the commer~ cial world by the easing of money, Those who looked for a revival of busi- ness through a strong bond market have been disappointed, because the banks show reluctance to become heavy purchasers of bonds. notwithstanding the fact that they have accumulated large funds which they cannot profit- ably invest in the call money market, {or even in Government securities |are now selling at such a low yield. Bill Policy Important. The belief cxists here that ultimately the Federal Reserve policy of low money rates will have a substantial effect on business revival, but that it will take many months, perhaps, before the gen- jeral revision in interétt rates i achieved. Banks gencrally are beginning to | question the wisdom of paving interest {on demand deposits. and there is a jtendency to shun new savings accounts at the old rafes of interest S y this rearrangement of interest rates which takes so much time and which is delaying the full effect of the low money rates estab- lished by the Federal Reserve both on | rediscounts and on the rates quoted ces or bills. Slowly but surel the Ped- eral Reserve bill policy has become as important almost, the rediscount | rate as a_means of controlling money | rates, and this has boen done within |24 months under conditions which | have successfully tosted the flexibility | of the entire Fedcral Reserve system. (Copyrisht. 1931) Washington Produce Butter—One-pound prints, 29; tub, 28, Eggs—Hennery, 19a21; current re- ceipts. 17a18 Poultry, alive—Turke broilers, colored, 35a3 ers, 25a28; hens, colored, 23a24: Leg- horns, 17: roosters. 12al4: ducks. 15: keats, young. 70a80: old. 40. Dressed— Spring_ broilers, colored. 38a42: Leg- horns, 25237: he1s. 24a26; Leghorns, 18; , 16; keats, voung. 70a80; old, 40. Meats—Bef. 12i.a131,: veal, 13a15 lamb, Wes 18220: Spring. 23a pork. loins, fresh hams, 171.; fr oked hams. 18 d shoulders, 12: strip bacon, 21 in bulk, 10: packages, 11 Live stock—Hogs, hea 5.5026.25 light and medium, 6.50a6.75: pigs, 6. 6.75: loughs, 3.00a4.50: calves, 4.00a 8.00: Spring lambs, 6.00a9.0 Fruits—Apples, box, 2.50a: 1.0022.00: pears. by cantaloupe: 3.25a3.50; standards, 3.00a3 . 2.50; fiats. 150; oranges. 4 lemons, 5.0026.00: limes, per 100, pineapples, 2.50a2.75; strawber- 2.00a5.00; blackberries, 4.50a7.00. , 5.0026.00; plums. 1.25a : bananas, 1.5023.00; .50: rhubarb, per 100 bunches, 4.00; cherrics, 32-quart crates, 5.00: fancy box, 2.00a2.50; honeydews, 2.0023.00. Vegetables—Potatoes, new, per bar- rel, 2.50a3.00: old, 100-pound sacks, 2.00: corn, 2.00a2.50: string beans, 75a 100; Limas, 4.50; cabbage, 50a75: kale, 30 a40; spinach. 30a40: beets, per 100 bunches, 4.00a5.00; carrcts, per 100 { bunches, 6.00a7.00; squash, 1.25a150; asparagus, per dozen bunches. 2.00a 12.50; tomatoes, 3-pan crates, 1.00a1.25; | 6-pan crates,” 2.50; cucumbers. 2.00a 2.50; eggplant, 2.50a3.00; caulifiower, 1.50: lettuce, 40a50; Spring onions, per 100 bunches, 2.00; Bermudas, 50-pound 1.50a1.75; peas, 1.00a1.25; cel- ery, per bunch, 1.00. vs. 20 Spring Leghorn broil- smol MILL CONTRACT AWARDED. NEW YORK. June 9 (/) —United Engineering & Foundry Co. has received a contract for a new cold rolling mill from Otis Steel Co. of Cleveland. The contract is a supplementary order to that placd earlier in the year by Otis Steel with United Engineering, involv- ing close to $2,000,000, under which one new hot mill and the reconstruction of a second hot mill are being undertaken for the Riverside, Cleveland, plant. Eales. High Low. Un Pac 4368 945 948 Un Pac 4% 1021 1017% Unit Drug cv 58 25 10015 100 Utd King 618 37 1077 U S Rub 1st 53°47. 63 Un St1 W 6155 A 47 Ud St W 63, Utd St W 6155 C 51 Uruguay 6s 60 Uruguay 65 '64 1021 100 1067 106 921 9715 91% 91 92 9% 54 3614 100% R2 948 851 101% B Utah P & L 58 Uti] Pow 58 59 ww. Util Pow 5%s "47.« Vert Sug 1st 7 Vienna 6s Va Ry 4%s'62. Va Ry & Pow b8 Wabash 5158 Warn Br Pic 6339, Warn Quin 6s 3! Warner Sug Warsaw 78 58 . Wst Sh 1st 4s 2361, West El deb 55 '44. West Md 4s ‘52 Wes' Md 5%s 77 West Pac s '46.... West Un Tel s '51. West Union bs '60. . West Un T 6343 '36. Wh & L Ecv pf '49. W & LE rf 415 ‘664 Wil-Ov 15t 6345 33, Wil & Co It 6541, Yokohama Testn Sn&T b | Yng StU&T 58 B which “