Evening Star Newspaper, July 1, 1931, Page 15

FINANCIAL. " CURB SHARES GAIN INLATE DEALINGS Bears Believed to Have Re- tired Contracts in Final Trading. BY JOHN A. CRONE. Bpecial Dispatch to The Star. NEW YORK, July 1.—Stocks finished ‘higher on the Curb Exchange today after a weak opening and several fitful rallies. The desire of bears to be out of the market over the July 4 hcliday prob- ably was responsible for some of the short covering which proved ‘beneficial to the market. Electric Bond & Share ‘was up almost 2 points near the end. As the world fiyers, Post and Gatty. New York-ward there was a faint ir in the aviation shares. Niles-Be- ment-Pond, which through its stock holdings in United Aircraft has an in- terest in the flight, was virtually un- e hanged. United Light & Power A moved ahead as New England Telephone de- clined. American Superpower and Ni- agara Hudson Power in the last few minutes rose fractionally, as did Cities Service and Standard Oil of Indiana. National Fuel Gas in the natural gas division and Pennroad in the rails re- ceded. Ludlow Manufacturing Associ- ates, an inactive industrial, rose about :‘gomu from its last sale a fortnight LHICAGO LIVE STOCK—MARKIT CHICAGO, July 1 (#).—(United Btates Department of Agriculture) — 16,000 head, including i slow, uneven; weak to 15 lower: bulk, 170-220 pounds, 6.90-7.10; practical top, 7.1 ds, 5.50a7.00; pigs, 6.50a6.85; pack- sows, 4.25a5.10; light light, good and choice, 140-160 pounds, 6.85a7.10; light weight, 160-200 pounds, 6.90a7.15; me. dium weight, 200-250 pounds, 6.65a7.15; heavy weight, 250-350 pounds, 5.40a6.8! king sows, medium and good, 275- pounds, 4.00a5.15; slaughter & and choice, 100-130 pounds, ‘V Cattle, receipts, 9.000 head; calves, 2500; sluggish outlet for all classes; fed steers, yearlings and she stock weak to 25 lower; many bids off more; bulls ;r:;rlm&n ml:?o ;h.rp‘l’yulo;;er: “mr'll fed ., 840 outstanding medium weight steers, 8.15. & Blaughter cattle and vealers—Steers, good and choice, 600-900 pounds, 7.25a 8.75: 900-1,100 pounds, 7.00a8.75; 1,100- 1,300 pounds, 6.50a8.50; 1,300-1,500 poands, 6.25a8.00; common and medi- ‘um. 600-1,300 pounds, 5.00a6.50; heifers, good and choice, 550-850 pounds, 6.50a 8.00; common and medium, 3.5026.50; cows, good and choice, 4.00a5.25; com- mon and medium, 3. 00; low cutter and cutter, 1.75a3.00; bulls (yearlings excluded), good and choice (beef), 4.00a 4.50; cutter to medium, 3.25a4.35; veal- ers (milk fed), good and choice, 5.508 7.00; medium. 4.50a5.5y; cull and‘com- mon, 3.00a4.50. Stocker and feeder cat- tle—Steers, good and choice, 500-1,050 pounds, 5.50a7.00; common and medi- um, 4.0085.50. Sheep—Receipts, 12,000 head; weak to 25 lower: early bulk, choice native lambs, 6.75a7.25; few, 7.50; plain Montanas unsold; choice fed yearlings, 5.50; most fat ewes, 1.00a good and slow, ewes, ' 90- 150 pounds. medium to choice, 1.00a ;.25; all weights, cull and common, 50a MARKET CHICAGO STOCK By the Associated Pre CHICAGO, July 1 —Pollowing is the complete official list of transactions in stocks on the Chicago Stock Exchange today: High. 33 8TOC] Low. Close. 38 Mach... RS Gt Lakes Alrcraf Gt Lakes Dreds Grigsby-Grunow _ 5358558 3¢230585 22 ERCAO *OEF RT3 T I SRS 2y 57 100 Vortex Cup 50 Vortex Cup 100 Wahl ... (o SulEtael! Yates 100 Zenith Stock sale: adio i today, 91,000 BONDS. Western Util 512 '32 99% Tnsuil Util 65’40, 86% d sales today. $32,000. BALTIMORE STOCKS. Speeial Dispatch to The Star. BALTIMORE, July 1.— Bales. STOCKS. 980 Arundel _Corporation 2 P Telepho 2% shares. 3] Northern Cent R R com. 60 New Amsterdam Cas $Pa Water & Power 3 C 10 Western Marylend Dy BONDS. 1000 Maryland Electric Rwy lst 5s. ... 1000 Maryland Eleciric Rwy 6las. 3000 United Ry & Elec income 45 z Rz NEW YORK CURB MARKE Note—All stocks are sold in mfluwmufl shows 6% Alr Investorscv pf.. Aluminum Co of Am Alu Co of Am pf (6). 4 Aluminum Co Ltd... Am Cit PAL Bb10%. Am Com P A (b10%) Am Corp (f15¢) o Am Cyanamid Am Dept Stores. Am Equities. . Am For Pow war. Am Founder: Am Gas & Elec (11). Am Gas& Elpf (6).. Am Invest. Inc (B).. Am Laundry Mach 2.175: Am Natural Ga: 1 Am Superpow (40c). 101 Am Superp 18t (6).. 1 Am Util&Gen (B)vte z 1 3268 131 2 1 Arkans NatGasA... Art Metal Wks (60¢). Asso G&EI (4 * Ass0G & El ot Atlas Utfl Corp. Atl Bahta Corp. Bigelow-Sanford. Bridgep Mach (25¢) Burco Incev ot (3).. Cable Radio T vte... Caro Pwr & Lt pf (7) Celanese 1st pf (7). Celanese Cp pt (1) Cent Pub SveA b10% Cent Stat El (b10%). Cent $t Bl pf xw (6). Chain Store Devel. .. Ch: Alnv. (1).. Service (g30¢) Col Ol & Gas vte Co Picture vie (75 Colon 01l 5 Cmwlith Edison (8)..100s Cmwlith & Sou war.. Com Wat Ser g123%4e 4 Consol Aircraft..... Consol Auto Merch. . Con Gas Balto (3.60). Con Roval (30c) Cont Shares conv pf. 4258 Cord Corp. 2 Corp Sec Ch (b6%). . Cosden Oll.. Creole Petroleum Crocker Wheeler. .. Cuban Cane pr opt w. Cust Mex Mining. Dayton Alr & Eng. Deere & Co (1.20). De Forest Radio. . Deisel W Gilb (134). Derby Oil Refining. . Detroft Alrcraft Cp. . Dubilier Cond & Rad. Duquesne Gas Corp. % 0O N CI 3 e i O 0 B9 e B0 00 e 00 East G & F Assoc. East St Pow B (1)... _East Util Assoc (2). East Util Assoc cv. . Eisler Electric Corp. Elec Bond&Sh (b6 %) Elec B & Shcu pf5.. Elec B & Sh pf (§) Elec Pow Assoc (1). Elec Pow Asso A (1) Shareholdg (b6 %) “mp Corporation. ... Burop E Ltd A (60¢) Europ Elec deb rts. . Evans Wallow Lead. Fajardo Sugar. Falcon Lead. . Federated Metal, Ferro Enamel (A) 4 Fiatrets (94%e) Fischman & Son: Ford M Can A (1.20) Ford Mot Ltd 36 3-5¢ Fox Theater Cl A. Franklin Mfg Co Gen Alloys. ... Gen Aviation. .. Gen Leather Co. Gen Theat Eq cv pf.. Goldfield Consol. . Goldman Sach T C... Gold Seal Elec new. ., Grt A& P T pf (7) Grief & Brpfx (7).. Groc Strs Prod vic. .- Gulf Ollof Pa (1%). Hazeltine Corp (2).. Holophane Co (80c)., 4 Hudson Bay M&S .. Humble Ol (13%). .. Hydro Elec Sec 1.40.. Imp Ofl of Can (50¢c) Industrial Finan ctfs insull Inv (b6%)... Insurance Sec (40c) Intercontinent Fet n Int Hydroev pf33%. 10 Int Petroleum (1)... 2 u s AN 0N AT i L WS A1 28 e POWR O o 65 08 16 Interst Pow pf (7) n Superpow A. Italian Superp war. . Lackawanna Sec (4). Leh Coal & Nav 1.20. one hundred- by the letter unum:‘y-mwummm. Btock a. Bales— Dividend Rate. Add 00. - 2 100 10! 9% ~Piev. 1031~ Hisn. Lo, -share lots 8 (80s) (3508), % 1 High, Low. Close. 102 8 8 8 % 137 131% 137 1° 100 89! Nia, N W 1% 9 7% 38 1% 32y 223 “ | nual payment. 224 Stockand - Sales— Dividend Rate. Add 00. Open. % Leonard O11. . . b % Lone Star Gas n $8e. Ludlow Mt Assoc 10. MacMarr Stores (1). % Magdalena Synd. ... Mapes Con Mfg 13.75 May Rad & Telev(1). Mead Johnson(t4%) Metal Tex pt p£(3%) Mid Sts Pet vtc A 22¢ Mid West Ut (b3%). Minne-Honey pf (8). Mo-Kan Pipe L (A). Mountain Prod (1).., Nat American Co. Nat Aviation. Nat Family Stor iag-Hud Pow B w.. g Sh Md (40¢)... Niles-Bemt-Fond (1) Nipissing. Nor Am Aviat A war. NoAmL&P (b8%). Nor Europ Oil Corp.. Nor Ind Pub S pf (8) 5% Nor St Pow pf (§) Northw Yeast Co 12 Novadel Agene (4). 14 Ohlo Copper Ohio Pow pf (8. PacG& B 1stpf 1%. PacG&Epf 1.37%.. Parker Rust Pr (3) Pennroad Corp (40e), Penn Wat & Pow (3) Philip Morris Ine Phoenix S C pt (3). Pllot Rad Tube A... Titney Bowes (b4 %) Plymouth Oil (1) Poterero Sugar. Pratt & Lambert (4) Producers Roy Corp. Pub Util Hold war. .. Pub Util Hold Cp xw Pub Ut Hold cu pf(3) Rainbow Lum PrB.. Relter-Foster. 4 Republic Gas Corp. Reynolds Invest.... Rossia Intl Cp (10¢). Royal Typewriter(3) Rubberoid Co (4) Ryan Consolidated. 8t Anthony Gol St Regls Paper ( Salt Creek Pro(1.40) Segal L & H (ab0c).. S1.1Ind full pd (5%). stock. kPlus 10% in stock. stock. p Paid Received by Private Wire Direct to The Star Office Ill:, Low. Close. % L | | 1 18 10s 107 107 107 107 821 1321 132% A% 4% 41% 41 2% 31% 1% 114 2% s M 8 s 1 YT TIOIOPS [P PR o e - S P e 888 % 108% 291 % % 109 20% B mad N c) > AR E e » = & Singer Mfg (115).. Smith-Corona vte. Solar Refining...... So Am Afr Lines 1st. South Penn 011 (1). South CEdpf C1% Sou Pipe Line (2) Southld Royalty 2 SWG&EDL (7). SW Penn P&L (1)... B Spleg May Stern pf..125s Stand Oll of Ind (2) .. Stand Oil of Ky 1.60.. Starrett Corp bf (3).. Stuts Motor Car Sunray Ol (b6%) Syracuse W Mach B. Technicolor, Ine. Teck Hughes (§0¢) Texon Ofl&Land (1 Tobacco Secur, Ltd 41 Union O1l Assoc (2). Unit Corp war, Unit Founders. U 8 Inter See 1st pf. Unit Verde Exten (. Uti] PALt(at1. Ut P&L B(at1. VacuumOfl (3)..... Vic Finan Corp(40c) Walgreen Co. Walker Mininj Wiworth (FW) ‘Woolworth Ltd pf. “Y" Oll & Gas.. Dividend rates in dollars based on last quarteriy or semi-an- *Ex dividend. : ’ ock . 1 Ltd. 449 1Partly extra. IPlus 4% in stock. bPayable in stock. e Adjustment € Plus 6% in stock. hPlus 1% in Plus 3% 1n Iast year—no reguiar rate. CORPORATION REPORTS TRENDS AND PROSPECTS OF LEADING ORGANIZATIONS. NEW YORK, July 1.—The following is & summary of important corporation news prepared by the Standard Statis- ties Co., Inc, New York, for the As- sociated Press. News Trend. According to the American Petroleum Institute, daily average crude oil pro- duction for the week ended June 27 was 2,441,950 barrels, a decrease of 40,- 400 barreis from last week. This is en- couraging, as all the major districts contributed to the reduction. Gasoline stocks at refineries declined 432,000 barrels to 41,868,000 Freight car loadings went against | hali the downward trend usual at sea- STOCK AND BOND By the Associated Press. advanced 6,663 cars from the previous week to a total of 739,116 cars. | § creases were shown in all commodi- ties with the exception of coke, miscel- laneous freight and merchandise in less than car lots. The Companies. Hamilton Bridge passed quarterly common dividend; paid 25 cents May 1. Third Avenue Railway May net in- come, after interest on 5 per cent ad- justment income bonds, $76,972, against $58,138; 11 months’ net income, $211, 680, against deficit $244,537. Arizona Power Co. 1930 net income, $93,951, against $198,433. Baldwin Locomotive Works gets $3,- 000,000 order from Westinghouse Elec- tric & Manufacturing for parts for electric engines. Boots Pure Drug Co. Ltd., common share earnings, year ended March 31, $2.03, against $2.04. Columbia Pictures earnings for year ended June 28 estimated at $4 a share. Crocker-Wheeler Electric Manufac- turing expected to report deficit for first f. Idaho Power 1930 combined $7 and $6 AVERAGES, » WEDNESDAY, JULY 1. STOCKS. 50 Industrials. 114 20 Rails. 80. ings expected to cover bond interest and depreciation; tonnage volume off 25_per cent. Pennsylvania Railroad — Interstate mze::e eunmoh‘mon examiner recomi pr agreement for use of station by Long Island Rail- Reo Motor Car June output it 50 per cent ahead year ago, due princi- i’;iuy'm!‘owmm of new low price - Wagons. Western Pacific Railroad Co. deficit, after charges, $355,026, against deficit,” $360,374; flve months’ deficit, $1,523,604, defict, $1,649,431. Sherwin-’ Co. reported pay- ing $30 & share for control of Canadian concern. American Department Stores reduces capital represented by common stock from $1,234,000 to $341,470; difference transferred to surplus. Atchison, Topeka & Santa Fe Rail- way reduces round-trip Chicago-Pacific Coast fares ranging from $50 to $75. Empire Steel—Court orders receiver to _continue operations of company. International Business Machines first five months’ profits 4 per cent ahead of like 1930 period. National Trade Journals—Time for deposits under reorganization plan ex- tended to July 14, 1931. National Dairy Products subsidiary, Sheffield Farms, lowers cream price about 25 per cent to meet competition of small independent distributors. Raybestos-Manhattan, Inc., common share earnings five months to May 31, T1_cents. Westinghouse Electric & Manufactur- ing reports good gain in refrigerator sales for first half. General Electric gets $1,750,000 order for electric meters from New York Edi- son. - Standard Ofl of New York cuts gaso- line from 1.2 cents to 2.8 cents s DAY, ; EREERRE iRt HH P 3 S 59355 STIEERE, 232282232333232282823 e 7 Fairbanks Mor Pederal Wat 5! PFirestone C M 55 Firestone Tire 55 '42 Rubber 5'35 P 5 nap 14 Insull Utilit' 68 B 2 Intercon Pw cv 68 1Int Pw Sec 7s E 37 Intern Am 3 36 Intersta Power 55 Co 58 A 47 P sel % 8 ! K.nlwl’ Uzacl g‘ '47 ? Kopper " @ad $1av 58 ‘45 i high P 8 65 go xington Uti] 3s y McN & L 58 chi e s B asemonts s e e 222222722 ZZZIRRZRZREZZR H 2 o 3 9" 'S = T CTCTOTPIDTI - PV JOPS 00 5 R 2| 9, LU EEEER el gidial Q> brey's b >2 52880, 22208\ 2 2 8tand Tel 8izs A . 10 Stutz Motor 7'as ‘3T 48un Oll 3las 55un Pipe Li L o lec Po Tenn Pub Serv Tex City Ga g gadagacade s A [-TOOTPIOTUTITR - SO - L 1 - aeorareee 424 B k 8s Danzig Port 6'zs '52 2Lima C Peru 6!3s '58 1 Medellin Col 75 '51. . 13 Mendoza_ Pr 7%s ‘81 r Unit El Ser 1s '56 xw 81 1Unit Indust 6%s 41. ww—With warrants. Xw—Without warrants. n—New. wi—When issued. MONEY MARKET.” NEW YORK, July 1 (#).—Call money. held at 1} per cent, the renewal rate, today in the official market. Funds were available outside at 1 per cent. Time money was firm, with 5 and 6 month maturities one-quarter of 1 per cent higher at 13, to 2! per cent, compared with 14 to 2 per cent pre- v Other maturities were un- changed. Bankers' acceptances were moderately active, with both demand and supply fair. Asking rates were un- changed. Commercial paper was quiet » | age of $234 a share, dropped to an aver- | JULY 1, 1931 WAR DEBT HOLIDAY PROPOSAL REVIVES DROOPING MARKETS Business Sentiment Throughout Wprld Due to President Hoover's Action. BY CHARLES F. !nAll‘. Special Dispatch to The Star. NEW YORK, July 1.—Until a week ago it could be said that there was Inot enough evidence of improvement in the business situation or in the mood of the public to support the arbitrary statement that a turn in in- dustry, in markets for commodities and in securities had arrived. However, the sudden injection of the one-year mora- torjum proposal has had an immense effect on markets and on sentiment, and in the closing days of June there has been witnessed the most radical turn- about in Wall Street attitude on record. A crisis in Germany that was leading to a request for a moratorium has been averted and international psy- logy has undergone a complete re. Billions of dollars of values have been added to domestic and for- eign securities, commodities lied sharply, corporations that were considering a reduction in their divi- dends have been influenced to main- tain the status quo because of the bet- ter conditions ahead, and there has also been some translation of this good feeling into larger volumes of trade. ‘The situation is not altogether con- vineing, however, inasmuch as there is | strong opposition in France to the Hoover proposal, and a nationalistic policy there may ruin the full value of the accommodation which the United States is giving Germany. If it could | be known at this writing that France | would make the concessions necessary | to the fulfillment of the Hoover plan | one could say positively that the lnwi point in the bear market for stocks had been reached on June 2 and that | not only had the end of the business depression been witnessed, but that a permanent, though slow, recovery was in_sight. ‘There had been indications prior to the moratorium proposal that stocks were liquidated and that there was a new degree of resistance in the market for many commodities. It was also the opinion of many judges of condi- tions that business had struck bottom. ‘Therefore, a basis for slow recovery in securities had been established, though this might have been upset again had | the German crisis been allowed to run to its full consequences, It was on a foundation that from the domestic standpoint was growing stronwex month by month that the international situa- tion was imposed, with a response reg- | istered in values that was tremendous, More Disposition to Buy. ‘There are a number of merchan- dising and producing situations that| have improved materially’in the past month. These are symptoms of the ex- haustion of supplies that have taken place and of a disposition to release money for goods that have been ad- justed to manufacturing costs. The public is not likely again to be a spend- thrift for some time. On the other hand, it is not hoerding quite 50 much | as it was earlier in the year. The big industries, like iron and steel, automobiles and building construction, face a quiet Summer. The broader movements of trade embrace those things which the average householder | necds and has been dispensing with | for 50 long. Parallel may be found in | the preference which those who are buying stocks show for the issues of corporations that deal in the necessities of life. They zlso exhibit a strong in- clination to buy shares moving in the | lower price ranges, say from $10 up to $25. ‘Between the early part of last Sep- tember and the middle of December the average price of stocks declined over 70 points. From December 17 to the end of the year there was a recovery of about 10 points. Obviously the market then was technically due for an even greater improvement. This it had dur- ing January and February, when it moved up on the optimistic statements from Washington and by industrial leaders regarding the imminence of a business expansion. In the last week of February average prices were nearly 40 points above December prices. Then began the 100 days of liquidation which ended on June 2, with the average of the market 25 points lower than that of December and 65 per cent below that of_September, 1929. In some re ts this was the most trying period of the entire 20 months of declining security prices. It was the one in which confidence in the outlook | for values was at its lowest and fear and fright took strong hold of the aver- age investor. Stocks that had been in| most demand in 1929 were sold with | the greatest difficulty until a list of 35| issues, two years ago quoted a er- age of $70 a share. Less than 15 com- mon stocks were then listed at prices above $100 a share. At this time 200 foreign and domestic bond issues were being offered from 60 cents to 15 cents on the dollar. It was a “rich man's panic” similar to that of 1903, except that it was of much greater proportions and started at a level where stocks, based on their low averages in 1930, had been, regarded as most attractive investments following a year and a half of deflation. Since June 2 and mainly following the Hoover proposal on June 20, the stock market has had an average ad- vance of nearly 30 points, which can- cels about 60 per cent of the decline that had taken place in the period of quiet panic between February 24 and June 2. Outruns ' Previous Depressions. We may consider the present de- pression as having extended over a pe- riod of 2 years, of which 21 months have reflected its worst pl . In point of time this outruns the depres- sion of 1920-21 and is about equal to that of 1893-1895. Its severity is greater than that of either of these early panics; the intensity of its effects on business and on personal fortunes greater than that of any other depres- sion in the country’s history. Because it has run so long and car- ried prices of securities and commodi- ties so low as well as reduced the pro- ductive capacity of the country to a point where supplies are becoming scarce, it may reasonably be argued that the critical aspects of both the market and the business situation have been endured. It does not mean, how- ever, that even if we have touched bot- tom in all markets there will be an im- mediate or substantial rebound. The illness of the country and of the world has been intense and prolonged and recuperation will be slow and cover- ing many months. Foundations of Recovery. We can feel at this time, however, that_the industrial health at least of the United States is better than it was | There are economists who believe that its. | P°Relief to some extent has been given Shere mast be many Tore consequences ‘mus two falling earnings cantile failures and in numerous divi- om‘x‘m lul layed an important in an formi un{lmenc here oonoern&‘gn the future of American business and of American markets for speculative and investment securities. red the most has developed abroad since the war. Out of the difficulties of the Creditan. staldt in Vienna came a loss In May occur- crisis thaf FINANCIAL, ™™ yxx Greatly 1mproved as Half Year Ends, parts of Central Europe and even into some of the stronger neutral countries. ~ Turn In Foreign Outlook. Writing in the last week of June, after the surprising turn in the attitude of the administration at Washington on foreign debts, one can make one's self 2 l New »Yérk Cotton ‘Special Dispateh to The Star. NEW YORK, July 1.—After selling within 4 points of the 10-cent level, which was 65 points under high levely of last week for October contracts, prices on the Cotton Exchange turned abruptly upward today and after ad- vancing 30 points ended 21 to 24 points higher than Tuesday. Private reports that rain was needed over a large ares stimulated the buying movement and the list closed at the top, meef very little advance. jpots were points to 10.15, believe that ltere again a turn has come ! pecamper about and that along with the evi- dences of betterment in this country— even though these si are none too prominent—there is the beginning of a movement in which the leaders of all | nations will co-operate in order to over- come the present world troubles. The economic and financial crisis in June may be "Elnlleled with the military crisis in Spring of 1918 which was met by the appointment of a supreme commander to direct all of the allied forces that had been operating with entire lack of co-ordination. Even should the situation in Europe be brought under control, however, it will be,a long time before the shat- tered fndustrial organizations abroad can be integrated and the confidence of investors re-established. Therefore, this country must look to its own people for the support of markets for its raw materials and manufactured goods. The monthly foreign trade fig- ures during the past year, and par- ticularly those just published for May, tell a plain tale of the impoverishment in South and Central America, in Con- tinental Europe and in the Far East. it may take the greater part of a gen- eration to overcome the eff2cts of in- tense natfonalism, with tariff barriers in every part of the world, and that we must meet this situation and adjust our output of manufactured products and of products of the farm to the con- suming capacities of our own 120,000, 000 _people. There is no doubt that in' the past six months the spectrs of Russian com- petition has been more in the minds of the American people than it was during 1930 and that much political capital in the United States is being made of the alleged successes under the Soviet five-year plan, in order to! disturb those who have become more discontented and more inclined to fol- | low new leaders as their employment and their earnings.and savings have steadily diminished. Distress Aylrtd. The weekly pay envelope of Amer- ican workers as a whole has been ma- terially -reduced. There is not today, nor has there been at any time, the widespread distress that characterized | other major depressions. There has | been greater sympathy and unity of policy between employers and employed, so that fewer people than heretofore have been cut off with no sort of job. Such work as there has been to do has been more intelligently spread around among those who most needed it. It is a striking fact that up to date there has been a comparatively small withdrawal of savings bank deposits in centers of industrial activity and in other centers an increase in such de- those whose incomes or wages have been reduced by the sharpest decline in food prices, as well as in the prices of other necessities, experienced 11 the past 20 ye It is now possible to ob- tain food and clothing at from 20 to 25 per cent below the costs of 1928 and in 1929. Rents are also lower, though not as much as the¥ should be in proportjon to the decline in build- ing costs #nd in building values. The man who lives on his income has the advantage of this change, though at the same time the disadvantages re- sulting from a very general reduction in dividends, in interest on back de- posits and in the frequency of default on_real estate mortgages. ‘There is a large element in our popu- lation who actually or psychologically are prevented from taking initiative by the reduction in their income on invest- ments and the depreciation in their securities that has stared them in the face since November, 1929. There has never been a time in this country’s his- tory when so many thousands of peo- ple were “blue” because of the .condi- tion in securities. For this reason it has seemed to many economists that the starting point in any pronounced and permanent domestic business situa- tion " will ‘be *found when prices of stocks and bonds establish themselves at higher levels and stay there. Money at Low Levels. Along with the lower prices of com- modities as compensation for lower wages or income has come the situation with respect to interest rates that has not been paraileled in a quarter of a century. This has been reflected n-ore in long-term than in short-term quo- tations. Call loans have held consist- ently at 11, per cent, with an occasion- 1 drop to 1 per cent. This is not much different from the level in the latter part of 1930. On the other hand, six months money has declined from 21: per cent bid to 1'; per cent bid and four months money from 2, per cent | to 11, per cent. Commercial paper is now quoted at 2 per cent against 2% six months _ago. ‘The Federal Reserve rediscount rate last January was 2 per cent in New York and 33, per cent in nine of the Federal Reserve districts. Today it is 114 per cent in New York and from 2 to 2% per cent in five of the other Re serve centers. Meanwhile, brokers loans have de 25 per cent after a drop of over 42 per cent in 1930 and are the lowest since June, 1924. This is only one of the phases of liquidation which has brought the credit structure of the country back to or below that which obtained even before the bull market in stocks was initiated seven years 8go. ‘There is every prospect that borrow- ing rates will be casy for the remain- der of this year. They mnay not touch such a low average as in the three months just ending. But they will be such as to take away from the bor- rower in all sections of the country the frequent handicap of interest rates too onorous to permit cf business com- mitments. The lender of money has been com- pelled to take a cut in his wages along with the other concessions to hard His interest on savings is being reduced, his former rate on his checking account is at about the irreducible minimum asked to Corporation Finances Strong. One of the ways in which the pres- ent situation shows a stronger char- acter than in other through the reduction corpora ger course, infinitely more se- 1907. There have been ma; and y more ions due to the condition of “frozen estate loans and to a depreciation h‘x'.: it | securities which has d has of confi- | bank suspensions, 100 more showing investors “and in 1930, assets” in real | ent Grain CHICAGO, July 1 () —Sharp breaks in corn prices today carried the market down 45 cents a bushel. Moisture fore- casts and a crop estimate of 914,000,000 bushels more corn this season than last year were largely responsible. The pres- ent condition of the new corn crop wi unofficially reported as better than a 10- year average. Wheat sold down to with- in a fraction-of the season’s low-price record. Corn closed semi-demoralized, 2%s 4% cents lower: wheat, 1'2a213 down: oats, 2%a3% off. and provisions show= ing 2 cents to 27 cents setback. WHEAT— High. Low. July . 574 5 September 583, December CORN— July September December OATS— by i Septembe; December RYE— July . 3eptember December NEW YORK. July 1 (#).—Stocks strong. popular shares resume forward movement. Bonds irregular; rails sag. Curb firm: utilities rally. Foreign ex- changes firm; sterling and French francs gain.’ Cotton higher: trade demand. Sugar higher; spot market. Coffee higher; buying. CHICAGO, July 1 (#).—Wheat easy; bearish Farm Board sta‘ement. Corn weak; beneficial rains crop estimate. Cattle 1o and lower. trade METAL MARKET. NEW YORK, July 1 (#).—Copper dull; electrolytic, spot and future, 81;a9. Iron quiet, unchanged. Tin steady; spot and nearby, 25.50; future, 25.62. Lead steady: spot, New York, 4.40; East St. Louis, 4.22. Zinc steady: East St. Louis, spot and future, 3.90a3.95. Ane timony, 7.05. SEABOARD AIR LINE. Report to Interstate Commerce Com- mission: 1931 1930. May sross ..$4.187.518 34.057.07¢ Net operating 17.198 41 income '3 1153 Five months gross 21138434 23.415.138 Net operating income . 2. 3372818 — PARIS BOURSE PRICES. PARIS, July 1 (P —Trading was quiet and prices were firm on the Bourse today. Three per cent rentes. 87 francs 60 centimes. Five per cent loan, 103 francs 80 centimes. Exchange on London, 124 francs 221, centimes. The dollar was quoted at 25 francs 54 cen= imes. SILVER QUOTATIONS. NEW YORK, July 1 () —Bar silver steady and unchanged at 29%. al creased and, more significant, the average amount of their resources was measurably greater than it had been. This situation will tend to about more consolidations and stimu= late the trend toward branch 3 ‘The immediate railroad situation bound up in the recent application of the carriers for a 15 per cent increase in freight rates. This is an emergency measure and will alleviate, but not cure, the ills in the transportation industry. Associated with the railroad troubles and likely to be reflected in the con= troversy over the proposed rate increase are the questions of railroad wages. the position of the farmer. whose products have dropped below the cost of pro- duction, and the necessity for support- ing a part of the credit structure built on the foundation of railroad bonds and railroad stocks. Not a little, there- fore, of the confidence that is stirring with respect to the proportions of busi- ness in the next six months is due to the faith that business men and bank- ers have in an increase in freight rates which will re-establish railroad credit, expand railroad buying and eliminats g: possibility of railroad wage redu ns. Comparative Charts Worthless. In trying to find a way out of the present’ situation it is not of much ey abd 1 She Sivancement, of in an advi science in so many flelds, while also taking into account the radical 'm- litical and economic movements it are going on over the world, to com-* pare 1931 with 1921, or 1907 or 1893. ‘There is no satisfaction in knowing that we have been living recently in a period of greater industrial and economic dis- turbance than has previously faced the every tirely commendable. The world faces changes in the next five or ten years that are so different from those with which business men and politicians had to deal in 1921 or in 1907 that one set of statistics today or a dozen different kinds of charts may fail entirely to forecast the fu- ture, if they sre based on what these same barometers indicated at other times of reaction. Outlook for Industry. No doubt the United States will rogress in the future further along certain lines than ever before. In other a declining birth rate have a lation to industrial W geared up decade by. te tion i 1