Evening Star Newspaper, June 21, 1931, Page 59

l News Part 6—12 Pages NEW A.1.B. RECORD SCORED AS YEAR'S ACTIVTY IS ENDED [ Officers of Washington Chap- ter Pleased at Showing Made by Students. MORE THAN 85 PER CENT COMPLETE THEIR WORK Two New Courses Were Added to Curriculum During the Present Year. The percentage of students com- pleting their prescribed courses of the ‘Washington Chapter. American Insti- tute of Banking, last season broke all records in the history of the local chapter. This was disclosed last night by Aubrey O, Dooley, assistant trust of- ficer of ‘the Federal-American National Bank & Trust Co.. who was chairman of the chapter’s Educational Commit-| tee. He is now president of the chap-| ter, succeeding Frank M. Perley of thel American Security & Trust Co. i “Officers of Washington Chapter are | particularly gratified over-the fact that a new record in class mortality was4 HOOVER'S AID PLAN in reporting on the year's educational | established this year,” said Mr. Dooley, activity. Total Enroliment 664. “The class enroliments for both Bemiesbers totalled 664. Of this num- ber there were 391 class enrollments in subjects that are required to be.com- pleted before a student may qualify for the standard certificate of the insti- tute.” Mr. Dooley stated that 85.08 per cent of the students enrolled in the prescribed courses successfully com- pleted their work. The class mortality for the year was, therefore, 14.92 per cent, which was by 5.08 per cent the lowest in the history of Washington Chapter. ‘The whole record for the year, Mr. Dooley said, indicated “one of the most successful years in the history of the local institute. The chapter's educa- tional program for the last year,” he explained, “embraced 16 ‘courses in 12 different bankingz subjects. During the Fall term there were 16 classes a week in eight subjects and in the Spring term 15 classes a weck in nine subjects. This resulted in an average of 231 class hours a week for the entire term. | During the year two new courses were introduced in the curriculum, one a #pecial class for women in “Problems of Personal Efficlency,” the othaer in “Real Estate.” Both of these classes experienced a large enrollment and proved highly instructive and successful. Announcement was made that 14 cer- tificates in public speaking will be awarded members of that class. Again | the local chapter has cause to be proud because this marks the first time stu- dents of Washington Chapter have earned certificates in that subject. The class conducted 28 sessions of 1': hours each which work was supple- mented by special assignments includ- ing participation in debates and public speaking contests, concluding with a final examination. For the first time Washington Chapter had a representa- tive in the A. P. Giannini District Pub- lic Speaking Contest which was held in Lancaster, Pa. ‘There were 12 members on the faculty last year which included prominent bankers, lawyers, accountants and edu- cators. Washington Chapter has one of the best teaching staffs among- the 2.’23 chapters in the national organiza- tion. Prank M. Perley of the American Security & Trust Co. whom Mr. Dooley succeeds as president of Washington Chapter, presented a complete report of the chapter activities during the year to the District of Columbia Bankers' Association at Hot Springs. Va.. last Friday. Mr. Perley’s report was en- thusiastically received and highly com- mended by members of the association. Dividend Declared. ‘The, board of directors of Blue Ridge Corporation has declared the eighth regular quarterly dividend on its optional 6 per cent convertible prefer- ence stock, series of 1929, payable on September 1, 1931, to stockholders of record at the close of business on August 5, 1931, at the rate of 1-32d of one share of the common stock of the corporation for each share of such preference stock, or, st the option of such holders (providing written notice thereof is received by the corporation on or before August 15, 1931) at the rate of 75 cents per share in cash. New Bond Issue. Halsey, Stuart & Co., Inc., have pur- chased and are expected to offer early next week a new issue of $4,500,000 Houston Lighting & Power Co. (Hous- ton, Tex.) 47> per cent gold bonds, series E, due June 1, 1981. Proceeds from the sale of these bonds, which will constitute a first mortgage on the properties of the company, will be used to retire series B first mortgage 6 per cent bonds, due 1953 and out- standing in the amount of $2,000,000; a like amount of 51; per cent first mortgage bonds, series C, due 1954, and for other corporate purposes. ‘The company, incorporated in 1906, supplies electric power and light to 73 communities in a growing and pross perous section of Texas, including the City of Houston which the company has served for the past quarter of a century. Houston, according to 1930 census figures, has a population of 292,352, compared with 138,276 in 1920, an increase of more than 110 per cent within the decade. —_— RICHMOND MAN ELECTED PRESIDENT BY MILLERS By the Associated Press. RICHMOND, Va., June 20.—Edwin C. Forkler of Richmond was elected president of the Piedmont Millers’ As- sociation at the final session of the annual convention here today. Robert Morrison of Luray was elefted first vice president and Karl Statesboro, ‘Witt, Asheville, N. C. POTATO MARKET. CHICAGO, June 20 (#).—(United States Department of Agriculture)— Potatoes—Receipts, 76 cars; on track, 240 cars; total United States shipments, 1,312; new stock dull, trading rather slow; sacked per hundred-weight Louis- {ana, Mississippl, Texas, Arkansas Bliss Triumphs, 1.45a1.55; poor stock, 1.10 ‘mostly around 1.35; Alabama, 1.40a ; North Carolina barrel Irish Cob- | bert W. Atwood, noted financial writer, | acterize ¢ | ductive security ; | first five months this year of Markets Pages 1 to § McQuade Is Named New President—Atwood Delivers an Instructive Address. Financiers Make Merry in Sports Program and Enjoy Stunt Dinner. BY EDWARD S. STONE, Staff Correspondent of The Star. HOT SPRINGS, Va., June 20.—In- stallation of officers elected earlier in the day and the “family dinner” climaxed the thirteenth annual conven- tion of the District of Columbia Bankers' Association, which ended here tonight. The newly installed officers include: Edward J. McQuade, president; C. H. Pope, first vice president; George O. Vass, second vice president; F. P. H. Siddons, secretary, and Albert 8. G ley, treasurer. Frank J. Hogan will again serve the association as general counsel. Each new officer was personally es- corted to the platform amid vigorous applause and given the oath of office. The ceremony was carried out impres- sively before an unusually large at- tendance of the delegates and followed a long list of reports touching every phase of the association’s work during the past year. It also came after an unusually constructive address by Al- who discussed needed reforms in the banking and business worlds. FINANCIAL AND , CLASSIFIED he Sunday Sta WASHINGTON, D. C., SUNDAY MORNING, JUNE 21, 1931. D. C. BANKERS ELECT OFFICERS AS ANNUAL CONVENTION ENDS A EDWARD J. McQUADE. At the annual dinner Mr. Hogan was master of ceremonies upon request of Thomas J. Groom, chairman of the Entertainment Committee. The eve- ning was devoted to fun—business de- pressions, bank failures in the West, what to do with interest rates and new ways of increasing profits, not being given a thoughit. Song hits featured the dinner after! (Continued on Third Page.) PRASED N STREET Proposal to Assist Germany | Is Hailed as Construc- tive Move. | INCOME TAX ORDER DECLARED LIMITED Permission for Officers to ln-‘ spect Returns Applies to 19 States. Special Dispatch to The Star. NEW YORK, June 20.—Bankers who | have been financing went so far today as to char- the news from Washington | that President Hoover has initiated ef- | forts for the relief of Germany as “the most constructive development that has | taken place in foreign affairs since the end of the war.” It was felt in Wall Street that the ‘Washington announcement came at the moment when it would have an im- portant psychological effect in indus- trial and in political circles. It is gen- erally believed that the change in the | attitude of the administration followed ! conferences which Secretary Mellon has | had in London with the prime minister | of England and with the governor o(‘ the Bank of England. They were able | to give him information regarding the | state of affairs in Germany, which had become much more serious since Mr. Mellon left the United States a fort- night ago. | In spite of the advance in the redis- | count rate of the Bank of Germany | on Monday, that institution has been | losing gold and foreign exchange until the reserve of the Reichsbank today was close to the 40 per cent minimum. t was announced this afternoon that thé _three or four large private banks i Berlin had granted the government a credit of 250,000,000 reichmarks in order to cover government debts which are near maturity. This loan was made on the basis of 9 per cent interest. | One effect of the announcement that | the United States has taken a more sympathetic attitude toward the erisis in Germany should be to check the outflow of foreign capital in Germany and also stop the “flight of the mark.” | French and American lenders have | been withdrawing funds from Germany | this month and have been refusing to renew credits when they became due. fact that the United States Gov- | ernment now takes the attitude that | it must play a part in helping Ger- | many to carry on changes the whole | attitude of the banking world toward German credits. It is too early to speculate on what form American support for the German | situation may take. The most logical method of assisting her would be to | defer for some stated time the payments | which are being made by different countries to the United States, but which depend on the reparation pay- ments originating in_Germany. In spite of the fact that the Young plan greatly reduced the amount of annusal repara- tions payments set up under the Dawes | plan in 1924, the decline in commodity prices and the industrial reaction that has occurred in Germany make her sit- uation as a debtor much more serious today than it was when the debt terms were revised—Tfor all time, as everyone thought then—in the Winter of 1930. (Copyright, 1931.) NEW YORK BANK STOCK MARKET IS STRONGER By the Associated Press. NEW YORK, June 20.—The New York City Bank stock market during the past week registered a moderate re- covery as compared with the previous week, the dollar-index figures compiled by Hoit, Rose & Troster shows. Based on June 20 prices, 16 leading bank and trust company shares were quoted at 16.9 times known earnings, against 17.2 times at the close of the previous week. The yield now stands at 4.839 per cent, against 4.753 per cent a week ago. WEEKLY BANK CLEARINGS. NEW YORK, June 20 (#).—The weekly statement of the New .York Clearing House shows: Total surplus and undivided profits, $1,247,148,000, unchanged; totdl net demand deposits (average), $136,050,000, decrease; time deposits _(average), $32,020,000, crease: clearings week ending today, $5,981.560.222: clearings week ending June 13, $5,423,539,548. New Security Flotations. ~NEW YORK, June 20 (#).—New flotations Df‘g; $1,285,000,000, or 70.5 per cent of total new offerings, tation perfod of lous except for slightly lower res T ported in 1928 and 1929. e survey says that the figures offer “convincing evidence that at the present time lit- tle new capital is available except for distinctly productive purposes, such as construction and additions. to equip- ment.” SILVER QUOTATIONS. NEW YORK, June 20 (#).—Bar sil- ht}bn BY JOHN F. MILLER. President Hoover's order permitting uals to be inspected by certain State officers applies only to 19 States, tax experts pointed out yesterday. In al probability the President will be asked to modify the order so as to make it applicable to all States, they sald. ‘The 19 States yhose officers will have access to th¥ Federal returns, under the present regulations, are those having an income tax. Nearly a dozen Jurisdictions which have no income tax are making an ernest effort to collect property taxes on owners of stocks, bonds and similar property, in order to relieve the pressure on real estate. Those jurisdictions would be able to locate millions of dollars in securities, which their owners have failed to list, if given access to the Federal returns. In Pennsylvania, for example, non- exempt stocks and bonds are liable to a tax of 40 cents on each $100 of their actual value. State authorities esti- mate this levy is no moré than 20 per cent efficient. ‘California has a 20-cent tax and Nebraska an 80-cent tax. Other jurisdictions involved are Con- necticut, District of Columbia, Iowa, Kansas, Kentucky, 'Maryland, Minne- sota, Rhode Island and South Dakota. Oklahoma and Virginia have a so- called intangible tax on certain securi- ties, but those States also have an in- come tax and will, apparently, be able to use the Federal returns in making a | check-up. New Hampshire and Ten- nessee impcse a levy on interest and dividends. "This levy reaches only stocks and bonds, but is called an in-| come tax and quite likely falls within the terms of the new regulations. Ala- bama and Michigan have recording fees on securities that might also be affected. (Copyright, 1931) | NEW CANAL FREIGHT RECORDS REPORTED Welland nnd_ ;t‘ Lawrence Business Increases as Railroad Car Loadings Diminish. Special Dispatch to The Star. TORONTO, June 20.—Car loadings, for 50 many years considered an ac- curate barometer of Canadian business activity, are no longer proving an exact record of freight traffic, even on land. Various evidences reveal the falling off in both domestic and external trade during the current year as compared with the records for the corresponding periods of 1929 and 1930. But no one of these comparisons tells quite so pessimistic a tale as that to be gathered from the record of rsilway earnings. Therefcre, while no figures are avail- able representing the amount-of the transportation business captured by the motor trucks, it is evident that the new competition partly, though not completely, accounts for the decline in Tailway freight traffic. A comparison of car loadings in re- cent weeks with those of the corre-. sponding periods of last year reveals the heaviest declines this year in the less-than-carload lots. For the week ended June 6 the 49,957 from figures for the same week of 1930, but an increase of 3,080 over those of the previous week, [ merchandise, live shown in general stock and pul, During the last six weeks, Wi one exception, the loadings have shown a progressive im- provement. opped to ade fcr that month. trade in (Copyright, 1931). —_— Coke Production Of. By the Assoclated Press. £: 5 Production of coke declined again in May, and stocks on hand increased. ‘The c] affected both the furnace product_coke for the 31 was 3,125,571 tons, an average INDUSTRIAL STOCK 'LIST IS DEPRESSED INWEEK'S TRADING Rail Shares Not Helped by Application for Increased Freight Rates. BEAR AT%ACK RESUMED IN ABSENCE OF SUPPORT Thin Market Readily Yields to Liquidation, Despite Better Business Reports. BY CHARLES: F. SPEARE. Special Dispatch to The Star. NEW YORK, June 20.—The applica- tion this weck by the railroads for a 15 per cent advance in freight rates did not prevent another decline in rail- road stocks. The improvement in vari- ous lines of industry, including textiles, ofl and wearing apparel, was not suffi- clent to protect manufacturing and dis- tributing company shares from further forays by the bear element or to halt some liquidation. ‘The mood of the Street changed from one of cheerfulness, following the rise between June 2 and June 12, to one of disappointment over the failure of prices to hold. There was not, however, the discouragement or the despair that were everywhere reflected in the earlier days of the month. A new element was suddenly intro- duced into the market situation on Sat- urday by the announcement that the Washington administration is giving at- tention to conditions in Germany and will take steps not only to strengthen them, but to assist in economic recovery here and abroad. It took Wall Street some time to appreciate the significance of this announcement. When it finally began to dawn on speculators that one of the most i.m;:omm political and financial moves of been made, there was an impressive ad- vance in securities. This may prove to be the incident that in the future will be credited with turning the entire market trend into a more promising channel, | Portan The stock market this week has been identifled with forelgh . peqera] income tax returns of individ-| almost too small to give its decline sig- nificance. It has fallen to the lowest totals in some years, with the turnover on Wednesday only 900,000 shares. Fluctuations have been out of propor- tion to volume. The market has been thin. There has bzen an absence of sponsorship for leading issues. Again the professional traders have had the right of way. They are from those flroum of whom President Hoover in is Indianapolis speech on Monday said, “They make their contribution to dis- tress by ralds on our markets with purpose to profit from depreciation of securities and commodities.” He also stated in this same address that it must be determined “whether the facilities of our security and commodity exhanges are not being used to create illegitimate speculation and intensify depressions.” Some Rate Increase Foreseen. ‘The freight rate application is well presented. It has besn well received throughout the ccuntry. It will ob- viously meet with opposition in quar- ters where the day's work has for years consisted in an effort to pare down rates, regardless of the effect on rail- Toad credit. It is a fair guess, how- ever, that the Interstate Ccmmerce Commission, after the usual amount of reliminary investigation, will grant a h percentage of the increase. Mean- while the railroads must cut their cloth to the new pattern and abstain from paying out more than they earn. This conservative policy has resulted this week in additional dividend reduc- tions. It may later effect changes in cther dividend rates. it has taken some time for the gen- eral decrease in corporation dividends to have an influence on the investing public. In spite of the 1,200 to 1,300 rates that were reduced or omitted in 1930, there was comparatively little de- cline in the total of dollars paid out to shareholders. Many corporations last year continued the rates put into effect In 1928 and in 1929. Not a few in- creased their payments. A consider- able amount of capital that had only begun to make a return to shareholders in the latter part of 1929 was receiving the maximum return.on it during 1930. It has been only since the early part of this year that the dividends can- celled or contracted have begun to play & part in the economy of the country. There will be nearly 1,000 dividends rntd this half year at a lower rate than n the previous six months. This in- cludes -reductions and omissions on many large individual amounts of cap- ital. Consequently, the total dollar re- duction in dividends and in interest is believed to be between $50.000,000 and $75,000,000 monthly. This does not in- clude inure:’t h"l‘lde;lnllét on l’;‘l ‘esme mortgages privately held or publicly dis- tributed, or the contracticn in interest payments on commercial and thrift accounts in the different groups of Second Quarier Reports. ‘The nearness of the second quarterly reports to be made by col tions whose stocks are listed or publicly dealt in has a tendency to develop & bearish attitude on the part of specu- lators and to make for caution among investors. ‘There is little doubt that the, record of the second three months of 1931 will be shown to have been as lean as the first quarter. Then indus- trial profits were off from 40 to 45 per cent. The market situation, however, is in better condition to hear this tale of industrial woe than it .was at the end of March, when the average of prices was over 30 points higher now. 1t is true that commodity prices are Jower by as much as 6 or 7 per cent than they were on March 31 and that 255§ Reports Record A. L. B. PRESIDENT TELLS OF SUCCESSFUL YEAR. AUBREY O. DOOLEY, In his'annual review of activities the president of Washington Chapter, A. 1. B, declared more than 85 per cent of the students had completed their courses. Oil Trade Tums Hopefully Toward Proration Parley Conference at Austin, Tex., June 29 May Prove Boon to Industry. Special Dispatch to The Star. ‘TULSA, Okla., June 20.—The eyes of the ol trade are turned to the forthcgming State-wide proration con- ference in Austin, Tex., on June 29, the past decade had |in mission will meet oil producers in a final effort to e East Texas fleld within the proration fold. Im- it oil executives are convinced that, if the situation in that tfouble- some area can be brought under con- trol, orderly production of ofl can be restored and the foundation laid for price advances such as have been put into effect in California. ‘The alternative to failure of the con- ference, should such be the outcome, probably would be a call issued by Gov. Ross S. Steriing of Texas for a special session of the Legislature to enact amendments to the proration laws which will put teeth into them. 1t is recognized by all elements, how- ever, that voluntary obedience to pro- Tation rules is fer preferable 16 en forced observance. Independents Blamed. Independent producers in East Texas, whose rebellion against proration regu- lations promulgated by the State Rail- road Commission precipitated the cur- rent demoralization in u'be]‘zi‘lnbu:lness. are beginni to_see the of rea- son and lgnl’ullu that there is no possibility of making money so long as unbridled production is permitted in that fleld. No longer are those small producers attracted by the lure of imaginary profits to a policy of riotous drilling. A slump in prices to as low as 10 and 15 cents a barrel has convinced them of the folly of such a course. It is estimated that éven with a 35- cent market it would be necessary to produce about two-thirds of all re- coverable oil in the fleld to recover merely the capital invested. But even that possibility has faded with the weighted average price of oil in the field estimated to range between 17'; and 20 cents a barrel. Proof of a change of heart among East Texas oll producers is seen in numerous conferences of independents which have resulted in evolution of a voluntary plan to curb production. That plan would limit output of ofl to an average of 300 barrels to every 20 acres in the fleld. Several hun- dred independent oil producers have given their assent and will try to put it into effect today. Markets Depressed. Meanwhile, six months of disorderly development of the East Texas field, which already has caused a break of 6625 per cent in the crude oil market of the midcontinent area, continue a depressing influence in the markets. The crisis has been intensified within the week by the withdrawal of support from the East Texas crude oil market of large units. This action, unprece- dented within the recent history of the development of all fields, has created probably the most chaotic marketing conditions ever witnessed in the oil in- dustry. The situation has taken on the appearance of the last stages of a struggle for the survival of the fittest. (Copyright, 1931.) TREND OF POPULATION TOWARD CITIES SHOWN By the Associated Press. Populaticn growth - of the United States has represented a steady \and 'lun‘c‘nul.u stream towards the larger les. s This is proved by Census Bureau statistics covering the last 30 years, which show the urbsn population was 40 per cent of the total in 1900, jump- ing to 45.8 in 1910, to 51.4 in 1920 and recording a further increase to 56.2 in 1930. The buredu classifies as “urban” those communities of over 2,500 popula- tion. ‘The 93 cities of 100,000 population in 1930 represented 29.6 per cent of the total lation, the net increase for . { Py is the most urgent need toda Surety Co. has leased umm% i RESULTS OF TRADE WAR DENGUNGED BY INDUSTRIAL LEADER Spreckles Declares Losses to Humanity Will Exceed Those of World Conflict. SAYS ANTI-TRUST LAWS HIT PROSPERITY PLANS Price Cutting Causes Unprofitable Business and Lower Wages, He Asserts. BY JOHN F. SINCLAIR. Special Dispatch to The Star. NEW YORK, June 20.—Rudolph Spreckles, New York sugar refiner, re- plying to a question as to his views regarding ess improvement, made some statements which are worth seri- ous_consideration. “1 have no information,” said Mr. Spreckles, “which indicates resumption of business activities along constructive, that is, profitable, lines. “We are traveling in s vicious circle. Decreased demand for their products forces industries to curtail production. Reduced production increases the unlt.‘ cost of each article produced because fixed expenses must be charged against a lesser quantity. Less labor is required, therefore many employes are discharged :r ‘ne obliged to work on a part-time asis. “A price cutting has resulted in un- profitable operation in most industries, therefore wages have been reduced by direct cuts or by reducing the work days of employes and, in either case, the buying power of employes has been severely curtailed in addition to the enormous loss of business due to our unemployed having no available means with which to buy. Commercial War Losses. “Industrial leaders cannot restore prosperity because our anti-trust laws forbid concerted action by members of ahy. industry. “The Josses incurred during the forld War,” continued Mr. Spreckles, “will appear to be trifiing in amount when compared with the losses sustained by reason of the present commercial war. And I may add that human suf- fering among the masses today is worse than it was during’'the World War. Those who remained home then were employed and well paid, while our soldiers who faced the enemy were fight- ing for a cause they believed to be in the interest of humanity. “Both our civilian population snd those in our Army and Navy had the benefit of governmental support with- out stint. whereas today our Govern- ment refuses to accept responsibility in a crisis far more destructive of life and the happiness of its people. “For the past two years our people have been assured at frequent intervals that the turning point was just around the corner, At no time was there justi- fication for the optimtistic statements when issued, as is easily shown by sub- sequent events. Not a single- con- structive act has been taken by either our private or public leaders during this long period of human suffering. “We will soon be approaching an- other Winter, and, unless a ocon- structive program be promptly formu- lated, I am convinced that rioting by the hungry, with bloodshed and de- struction of much property this Win- ter, 15 likely to occur. Obligations to People. “The victors in the present commer- cial war are likely to find themselves in no better position than were the victorious allies in the World War. In fact, their position may be worse, be- cause they cannot collect reparations from the concerns they have destroyed and the people will not permit them to regain their losses by charging exces- sive pn:l?, “Ruthiéss competition cannot be stopped by any power other that the National Government. Not until that fact is recognized and intelligently acted upon will there be much hope of a re- turn of prosperity, in my opinion. “It is silly for any one to say there are indications of improvement unless those who utter such statements can point out what the favorable signs are,” said Mr. Spreckles in conclusion. “In- creased business activities carried on at 8 loss would merely hasten the time when a total collapse might occur. “There is no excuse for those holding positions of ‘responsibility in private or public life dll!eilrdln‘ their obliga- tions to the people as a whole. People will become impatient if men enjoying the role of leadership and personal ad- vantages cohtinue to ignore the dis- tress of the multitude.” Gold Stock at Record. Gold keeps rolling into the United States. Germany is chiefly Ible. When will the movement end? The monetary gold stock of the United States has again reached a record fig- ure. Last Wednesday it stood at $4,893,- week. This large increase in gold stock in New York is traceable to the financial and political difficulties in Germany, which have caused a drain on Germany in recent weeks by forelgn depositors. It seems a strange commentary on fiscal policy that with half the world 50 bai in need of gold, the United States and France continue to gather more of the metal, so that trade keeps moving down hill, instead of up. When everybody is crying out for world conferences of one kind or an- other, some responsible leader should suggest the need for a gold conference. A redistribution of the world's gold sup- y. Bankers’ Association deserve serious study. He urged Indiana bankers to insist on- at least a 20 per :Ixal reduction on all taxes—State, local Classified Ads Pages 5 to 12 oins Broker Fi LOCAL FINANCIER NOW WITH STOCK EXCHANGE HOUSE. ‘Who has just become assoclated with Goodbody & Co. Mr. Shepherd enjoys a_wide acquaintance in Washington. NEW WHEAT CRO HARVEST DELAYED {Heavy Yield Cuts Down Pros- | pect of Profitable Return ! This Year. Special Dispatch to The Star. | KANSAS CITY, Mo., June 20.—With harvest somewhat delayed by rains, the wheat belt is- waiting on the activity of gathering the notably large crop in sight, while trade and bank interests are wondering just what the producer will do with his money—what there is of it. When he gets down to figuring he finds that he actually has no profit, but he will- have some ready cash and upon this basis are sustained hopes of betterment in business. ~ Curiously, there is far less discourage- ment than was manifest last Autumn and Winter, due to the familiarity with the problem and the adoption of ways i and means to meet the new conditions. { The first distribution of the wheat money will, of course, be devoted to meeting current obligations as far as it will go and after that any surplus will be . Many resy adjustments have been made on the farmsteads that have cut down ex- penses and while every sort of produc- tion is diminished in return, the pro- ducer out of debt is getting along and ready for replacements as soon as. he can make them. Spring trade has been below last year except in case of spe- cial sales and exceptional values. An interesting sidelight on the in- vestor's attitude is the continuance cf sales of utility preferred stocks. Salesmen ere busy disposing of these on the installment plan and are ab- sorbing the spare sums professional and salaried workers are able to save. This, of course, affects savings bank accounts in the interior and is due to a feeling that utilities are more favorably situated than other icerns. While legislatures have indi investigations of rates and farmer members are inclined to anti-power attitudes, the large distri- bution of ownership has thus far held | public service commissions to fairness in their regulation of rates. ‘The new corn crop is coming along fairly well, with probability of going into the heated term in strong posi- tion. The tendency toward diversified | production should induce a greater use of corn than formerly and balance the activities of the producer better than has been seen during the last several years. Out of this he may work out a sounder system that will fit into his situation. 1 (Copyright, 1931.) STEEL PRODUCTION IN FURTHER DECLINE! | Ingot Output Is Now Estimated at 38 Per Cent—Copper Prices. Are Lower. By the Associated Press. NEW YORK, June 20.—Slow seéa- sonal declines in steel ingot production continued last week owing to further tapering off in demand for certain lines as well as the closing of some “high- cost” plan mated at 38 per cent of capacity and|is 000,000, & gain of $80,000,000 for the |further reductions are expected in the trade before the anticipated Fall pick- up. There was a smaller demand from the motor car industry, while orders for rails, tin plate and wire also declined. Demand for fabricated steel and tubular goods is fairly well sustained. an- nouncement of advances of some prod- | ucts in the third quarter has been made. Current prices are generally un- changed. Pig iron is dull but steady. per eased to the 8-cen: basis at which price a fair foreign business de- veloped, with sales abroad so far this month estimated at 30,00 tons. Do- mestic consumers were interested in orw:»”aw ements as well as the possil concessions, obtaining nearby :netal at , but metal was not freely offered for late delivery and prices were main at cers’ levels. i ki i S H % g 3 ifi agf FOREIGN ECONOMIC SITUATION AIDED BY | BANK RATE RAISES Business Conditions Continue to Reflect Psychological Factors, However. ALL EUROPEAN BOURSES ARE FIRM AT WEEK END Continued Flight of Capital From Germany Proves an Unset- tling Development. Special Dispatch to The Star. NEW YORK, June 20.—Cable dis- patches to the Business Week give the following swift survey of business abroad for the week ending June 20: Europe.—The three most important European ministries—England, France and Germany—on the same day, met and defeated opposition parties on ques- tions of political policies. In each case, the defeat was decisive and augurs well, at least during the coming Summer months, for a period of armistice on political animosities. The long expected fall of the Austrian cabinet, which oc- curred on the same day, was of less significance. Throughout the week. however, uneasy psychological conditions have weighed heavily upon the business situdtion. The almost catastrophic rate of the exodus from Germany of gold foreign currencies culminated Saturday in forcing the Reichsbank to lift th> rediscount rate from 5 per cent to 7 per cent. This step was drastic, but the gravity of the situation seems fully to justify so energetic a measure in order to re-establish confidence in the effi- ciency of the German government both at home and abroad. Despite this rise, and the somewhat more optimistic fezl- ing which is prevailing after the week end regarding the critical state of Ger- man politics, the Reichsbank has been forced to continue the sale of additional foreign bills and gold which indicates that pressure on the Reichsbank con- tinues. Bank rates both in Austria and Hungary have followed Germany's lead, but increased only 11; per cent. Creditanstalt Liabilities. Prolonged negotiations over the liabil- ities of Creditanstalt have reached the decisive state. Withdrawals have ceased and foreign creditors have arrived st a definite agreement with the Austrian finance minister not to withdraw durinz the coming two years the 71 millions in credit which have been placed with Creditanstalt. The nw government is expected to rTatify immediately this accord. Dominated by the better disposition in New York, European bourses are well sustained this week except in Berlin where the continued capital flight is the cause of a slight panic. After the increase in the bank rate. however, sharp reaction set in and stocks d bonds regained a part of their previous losses. Bankers in France are paving the way for a large conversion of French rentes and the public expects the move to come before July 1. This conver- sion will cover a total of 8,150 millions, means a saving to the government of $49,400,000 annually. The French pub- lic, however, is uneasy over this opera- tion, recalling the only minor success of the recent Jugoslav stabilization loan which bankers still hold in larg share. The e X pessimism probably is un- warranted, although of late confidence in France's ability to override unscarred the present world economic crisis is somewhat shaken. Abundant supplies if liquid capital now earning only negligible rates point to the success of any safe domestic loan regardless of foreign politics. Accord among the international nitrate producers has been frustrated by patriotic interests, especially in France, where strict protection has been granted manufacturers in order to stimulate the growth of this im- portant -peace and war time industry. London.—Britain watched its politi- cal -erisis comc to a head and peter out in-e more or less farcical manner this week, and let business take its course, which turned out to be little ¢l d from last week. A few lead- ers made a bull point out of the pos- sible fall of the MacDonald govern- ment, and another and larger group played up the large influx of gold, the success of the Woolworth issue, and the firmness in Wall Street. But, on the whole, the business outlook is little changed. Inquiries for Textiles. Beyond the moderate activity of the stock market, in which oils and home industrials were featured, there were encouraging reports of increasing in- quiries for textiles and more improve- ment for rayon. Metals show no confidence. The im- mediate interest in tin, caused by last week’s announcement that a pool may be formed to take over surplus stocks, lagging on termination of the South Wales tinplate cartel agreement. Fixed prices and output quotas are already abandoned. The future is again un- certain, Industrialists are manifesting interest in the report that British automobile production dropped off only 1 per cent in 1930, and that total output surpassed that of France, making Britain the world’s second producer. Paris.—General conditions continue to be monotonously uniform. and there is no prospect of any notable improve- ment. Business Is slack. Sales are becoming increasingly difficult. Pessim ism is growing. Except that unemployment is down another 41; per cent, there is no indi- cation that the seasonal pick-up is con- durx:mpeé 14 po::u’h'elm° th. ‘Xg’l)l( hfl:‘ ow the April fig- ure, and retail prices are down 7 points, but sales are not holding up. Within recent wecks the decline has spread to almost every of product, indicating that the deflaf cycle is accelerating. Political Outlook Improved. Politically, the outlook is slightly im- Lmvefl. Immediate interest is centered the success of Premier Laval in win- the s the Chamber for