Evening Star Newspaper, July 12, 1931, Page 53

+ pany had a total net income of $45.- News Pages 1 to 4 of Markets FINANCIAL - AND CLASSIFIED . he Sunday Sta Part 6—12 Pages WASHINGTON, D. C, SUNDAY MORNING, JULY 12, 1931 Classi.fied Ads Pages S to 11 INREASE N BANK DEPOSTS REACHES SIE3061 ND.C. Auditor Savage Reports Large Gain During Last Year—Result Analyzed. CAPITAL TRACTION NETS $5,405 RISE IN INCOME; Revenues for Half Year Cover Dividends by Gcod Margin. Figures Given. BY EDWARD C. STOM Local banks have scored the remark- able gain in deposits of $16.300,481.09 in the year since the controller's calli of June 30, 1930, according to & bank | analysis completed yesterday by Audley A. P. savage, auditor of the National | Savings & Trust Co. Total deposits in Washington banks | on June 30, 1930, were $262.050.916.88, while on the call of Jun 1931, they amounted to $278.351.397.97. thus re- vealing the above-noted splendid growth and at the same time depicting an un- | usually sound condition. i This_official tabulation. which is al- ways placed on file in the offices of the District Bankers' Association, shows a falling off in agerecate deposits be- tween the call of March 25 and June I | | Michael. New President BANK DIRECTORS SELECT BUSINESS LEADER. JOHN A. ECKERT, Fresident of the Columbia Planograph Co.. who has been placed at the helm of the North Capitol Savings Bank fol- lowing the resignation of Theodore He has been a director in the bank for years and tikes a very active interest in Washington trade and civic organizations. —Harris & Ewing Photo. INVESTMENT BOND MARKET STRONGER 30, this year, of $3.626.527.97. However, in' connection with this comparison it! should be borne in mind that the Dis- | trict personal tax was dated July 1| instead of January 1, as in previous| years. Bank officlals are frank to state | that withdrawals on account of this tax accounted for the fact that aggregate| deposits at the end of June did not | equal or exceed those of March 25. | Gain Since Wall Street Break. Comparisons bring out the fact that| Washington banks are still ahcad in| their total deposits of the funds they had on hand before the Wall Street break in the Fall of 1929. Controller | Pole issued a call on October 4. 1929, | shortly before the memorable tumble, which showed total bank deposits in ‘Washington amounting to $269,589,- ! 885.64. The call of a few days ago pre-| sents an increase in deposits since that time of $8.761,512.33. | To mention the last two calls again, it is not surprising that a slump in | deposits is noted. The banks reported | the largest aggregate deposits on_hand on March 25 in the history of Wash-| ington. In spite of the thrifty condi-! tion pictured in the increase in save! ings deposits, it wes hardly expected | that the bamks at this time would | smash the best record ever made. | A tabulation is presented elsewhere in The Star's financial section showing | the deposits of every bank in the city on June 30, compared with the figures reported on March 25. By groups the national banks had a decrease in de- posits of $3,517.332.55. The trust com- panies as a group also had a decrease amounting to $1.917.339.88. wh'le the savings banks of the city added a total of $1.808.144.46 to their Geposits in the three-month period. The Columbia National made the largest deposit gain of any bank in the city, with the Park Savings Bank running second. The third largest in- crease was reported by the Security Savings & Commercial, with the Chevy Chase Savings Bank and the National Bank of Washington next on the list. Reference to the table shows that sev- eral other banks had most gratifying advances. Capital Traction's Net Higher. The June financial report of the Capital Traction Co. shows a gain of over $10.000 in operating revenues for the month, an increase in net income and also a gain in net earnings for the first six_months of the year Operating revenues totaled $35 017.68, against $340.623.05, an increace of '$10,394 63; operating expenses re- quired ~ $249141.11, compared with | $245,606.76 in Junc a year ago, an in- crease of $3,534.35, leaving an operat ng | income, after taxes, of $74,265.87, azainst $68.860.58, or a gain of $5.405.29. The traction company had & non- operating income of $5,315 and a gross income of $79,580.87, compared with After other deductions of $3; 739.17 from gross, the street car col 84170, in comparison with $40,884.32, | or an increase of $4.957.38. 4 Revenue passengers carried on the | company's lines in June totaled 3,923, 678, against 4.371,383 in June a year ago, a falling off of 447,705. Traction's Half-Year Earnings. The company’s Teport for the first | six months of 1931 shows operating revenues of $2,084,294.66 against $2,-| 125,179.89 in the like 1930 period, &, decrease of $40.885.23. Operating ex- | penses and toxes totaled $1,635,090.36, | compared with $1,685482.19, a reduc- tion of $50.391.83 Operating income totaled $449.204.30, Against $439.697.70, an increase in this item amounting to $9,506.60. The no operating income was $12,121.96, prac- tically the same es last yeer. Gross income showed an increase of $9,125.46. | Deductions called for $187,327.82, against $183.109.52 in the first half of 1930, or an_increase of $4.218.30. Net _income for the six months to- taled $273,998.44, against $269.091.28 in the like period a' year ago, an increase so far this vear of $4.907.16. The num. ber of revenue passengers carried dur- ing the first six months of 1931 totaled 24,167.432, agalnst 27,788,175 a year ago, | a decrease of 3.620,743. i Study of the figures indicates two particularly interesting high spots. One | is the June gain in operating revenues and the other the more important fact that the net income for the first half year covers the dividend for the six' months by a good margin. Bankers' Bulletin Appears. ‘The Monthly Bulletin of the District Bankers' Association appeared yester- day and is devoted largely to a glance( backward at the recent convention at Hot Springs. George O. Vass, the re- tiring secretary, as the bulletin’s “staff reporter,” has written scintillating ac- count of the big annual event, with the following introduction: Scene: Union Station. Time: Monday morning, June 22. Where have you, been, sez Deyber? I've been t' th'| Coronation iv Ed McQuade, sez Bra- hany. Was it a good party, scz Deyber? | Good! 't was perfect, sez Brahany. I don't see how 't could 'a_been. sez Deyber, without meself an’ Biil Waller, #n’ Harry McKee, an’ Howard Moran. Well, sez Brahany, there was other b'g| financeers absent too, like Jake Pole, Andy Mellon, Gene Meyers an' Joe Schiavone. What happened to Mc- Lachlen, rez Deyber? He got a goold watch an’ chain an' a big sinse iv gelief, sez Brahany. Well, he made a ! bonds DURING LASTVEEK Sentiment Improves on Belief That German Credit Will Be Assisted. Special Dispatch to The Star. part of the week in the investment market. every one stood by to see what effect the definite agreement on Pres- ident Hoover's debt plan would have. Toward the close of the week the mar- ket had an uncertain tone because the agreement had not, as expected, en- tirely stopped withdrawals of short- term credits from Berlin. stop the run on German credit, avert a collapse of the Reichsmark and thus lay the foundation for German re- covery. When these withdrawals persisted end it became evident that quick ac- tion was needed to prevent a- bank'ng crisis, both stock and bond markets reacted. German Government 5'» per cent bonds—vhich have reflected the investment markei’s opinion of what was oc-urring in Europe more accurately probably than any other barometer— dropped to a new low on the move- ment. Other foreign bonds followed suit. Sentiment Shifts Suddenly. These developments gave pause to the overopt'mistic element and a wave of uncertaintv developed. It was obvious that Wash'ngton, London and Paris, having set their hand to the plow, would not turn back and leave the rest of the furrow unfinished. But it was hard to convince the markets here and abroad that Dr. Hans Luther could. by the mere asking, secure the 500,000,000 credit he needed in order to set the affairs of the Reichsbank and Germany in order. “devisen,” or fore'gn exchange, had reached the alerming total of nearly 2.000.000,000 reichsmarks since the first of July However, on Friday sentiment ishifted abrupily to the other side, and German had a_vertical recovery, on the expectation that the Relchsbank would receive aid. Bonds were quick to fol- low the lead of the fast-moving Ger- man group. During this period the domestic bond market acted with significant firmness. When stocks reacted in midweek and foreign bonds were breaking rapidly, the junior railroad and industrial list held closely to its previous level. Trad- ers became impressed by the perform- ance of bonds such as Erie 5s, Missouri- Pacific 5s. Nickel Plate 4lis, United | States Rubber 5s. Goodyear 5s, Shell: Union Ofl 5s, Texas Corporation 5s, | Paramount-Publix 5'.s, Famous Play- ers 6s, International Hydroelectric 6s and International Cement 5s. There was not one of these that did not in June break badly with the stock mar- | organized, :f],:'e‘l‘_cf:n“'g“’g‘}’l’:d{;fx; |from 1925 to 1930, warranted a broad downturn, then such ! 6,000000 unemployed do not complete ket. and it was natural to suppose that if the market's conception of conditions bonds would go with it. They did not, and at the end of the week speculators sterted to pick them up in fair quan- tities largely because of their previous firmness. Domestic News Better. Quite apart from this, the news at home was better. Confidence did not sink to its low mark of June, despite temporary reverses in the foreign situ- ation. It was true that both cotton and wheat had sharp dips, but few doubt that there is any reason behind these except the after effects of govern- mental market operations. Wheat, as a matier of fact, with a Canadian gov-! ernment condition estimate of 58 per cent against 92 per cent a year ago, had a good' reason for advancing. (Copyright. .931.) BANK STOCK QUOTATIONS CHANGE LITTLE IN WEEK By the Associated Press. NEW YORK, July 11.—The New York City bank stock market during the past week again registered little change as compared with the pre- vious week, as indicated by the dollar index figures complied by Holt, Rose & Troster. Based upon July 10 prices, 16 lead- | ing bark and trust company shares | were quoted at 18.2 times known earn- ings against 18.7 times at the close of the previous index. The yield now stands at 4.518 per cent, against 4.398 per cent a week ago. gra-and Prisidint while he lashted, sez Deyber. He sure did, scz Brahany. e remainder of the account is given over to a more serious review of the business s new officers, and the new standing committees. The issue also contains the resolution which paid such a glow- ing tribute to the late I. A. Fleming, who was so much misseg at all the convention sessions. NEW YORK, July 11.—In the early| This had | been the main object of the plan—to | ‘Withdrawal of | | There are as many more who are work- | pay roll fell nearly 40 per cent. slons, mention of the | REACTION IN STOCK MARKETS BELIEVED 10 BE TEMPORARY Prospects Declared Brighter, Despite Setbacks During the Yeek—Tone Improved, LIQUIDATION MOVEMENT PROBABLY COMPLETED Nation's Business Has Been Laying Sound Basis for an Early Recovery. BY CHARLES F. SPEARE. Special Dispatch to The Star, NEW YORK, July 11.—Even though the stock market this week hesitated and then reacted on the continued { heavy withdrawals from the Reichsbank, its_setback was of minor proportions and there is every reason to belleve that 1t has been rescued from the pros- pect of another slump in July or August, | which would violate the low levels of last_month. The improvement in the Reichsbank's reserve ratio this week, the diminish- ing demand for foreign exchange at Berlin and the strengthening of both stock and bond markets here near the week end are evidences of the world's faith in Germany's ability to secure sufficient redjscount credits to support the mark and, in the long view, pull herself out of the present troublous condition. The market, therefore, must now deal for a time with domestic factors, such as unfavorable corpora- tion statements covering the second quarter of the year and with the in- evitable reduction and omission of divi- dends. These will have their influence on speculative sentiment and on the attitude of investors, though not =o positively as if they were still associated with a crisis abroad such as was brew- ing when the reports of the first three months of 1931 were published. Be- fore the “debt holiday” was proposed the business mind of the country had already swung from “fear to confi- dence.” In the signs of steadiness in! securities and in commodities, a better | | psychology had been created. All this { would have changed, however, had the | momentum of a run on German credit i not been checked. Time to Move Forward. It is now t'me to begin to go ahead: to think in terms of what is to be rather than in those of what has been. | Sufficient adjustment has been made | to the overexpansion in industry, in! agriculture, in the output and the in- flation of securities and to personal extravagances to bring the business and investment situation back to a sound basis. Certainly there has been enough liquidation to restore the confidence of | those who are considering the purchase | of stocks and bonds, commodities or | merchandise, or who are of a mind to! Te-establish enterprises that have lan | | dormant for a year and a half. If one does not believe that liquida- tion has run its course and thinks that | further shrinkages should occur before the economic structure is in sound health, let him consider the following acts: The general business index has fallen over 30 per cent since October, 1929, | representing one of the sharpest de- [ clines on record, and has only recently touched its low point. Prices of listed securities have con- {tracted between 60 and 65 per cent {from the 1929 level, eliminating at least $45,000,000,000 of what may have been regarded as fictitious values. Commodit'es have declined in the | past two years an average of 27 per | cent and are close to the pre-war level. Brokers' loans have decreased nearly 80_per cent. | There has been a contraction of over one-third in the volume of bank | clearings. | More than 2,000 banking institutions | have failed and nearly 40,000 commer- | | cial insolvencies have occurred during this depression. Over 2,000 corporation dividends have been reduced or passed. | Railroad earnings have decreased | about 35 per cent in that item from which interest and dividends are paid. | Actual Wages Reduced. It might be argued that while this is all true and seems to be a sufficient cure for the excesses of the past, there has been too little liquidation of wages and not sufficient writing down of | losses which are quite visible in com- modities, merchandise, securities and real estate. ! Union wages, per se, have not been | reduced. Actually the pay envelope of 1 The 5.000,000 to the record of thcse who are victims of the industrial and financlal setback. ing a few hours a day or a few hours a week, not infrequently at a lower wage scale than formerly to eke out enough for bare necessities. Surely they have experienced wage liquidation in its bitterest sense. From September, 1929, to January, 1930, the factory The individual who, through industry and thrift, has created a competence to relieve himself of public care when he can no longer labor on, has also had his rightful wages liquidated in the loss of dividends, interest, rents and the lowering of rates on money on de- posit. His position is entitled to just as much consideration as that cf ‘the man who is still working to obtain eco- nomic independence. Adjustment in Commodities. Commodities have been quite gen- erally reduced to the market level and do not ccnstitute the problem with | banks and merchants that they did in| the 1921 panic. The present depres- sion has been conspicuous for an ab- sence of large mercantile failures, though significant for. the increasing number of middlemen who have been forced oiit of business. This is one cf the beneficial aspects of the adjust- ment. The pricing of merchandise at re- tail to the recognized parity with com- modities and wholesale values had been resicted through 1930. Latterly it has been recognized that in order to move goods there must be substantial con- cessions to buyers. (Copyright. 1931.) POTATO MARKET. CHICAGO. July 11 () (United States Department of Agriculture).— Potatoes, 92; on track, 136; total United States shipments, 1,227; weak, trad- iny only fair; sacked per cwt, Mis- souri cobblers mostly 1.60a1.65; Ar- kan<as end Missouri triumphs, 1.90a 320165 Virginia barrel cobblers, 32.90a {in {people get RAILROADS' PLIGHT DECLARED SERIOUS NATIONAL PROBLEM Expert Says Present Condi- tion of Carriers Affects Every Citizen of U. S. BILLIONS ARE INVESTED -IN VARIOUS SECURITIES Further Reduction in Earning Power Would Be Calamity, He Believes. Special Dispatch to The Star. NEW YORK. July 11.—The depres- sion in the United States cannot be lifted until something is done to relieve the railroads, declares F. J. Lisman, New York authority on rallroads and rallroad economics and securities. It is a problem that touches the pocket of every citizen, he says. If confidence could be restored among the enormous number of people who hold railroad securities, so that they would spend their current income, it would make a big difference in business. As it is these people are conserving their income for fear of what may hap- pen to their investments. Railroad securities form the back- bone of America, being held by savings banks, insurance companies, trust funds, etc. Should these investors become panicky and start a serious liquidating movement, it would strike a disastrous blow at the country’s financial struc- ture. Mr. Lisman pictures that should the railroads be permanently placed in & position where they cannot earn more than they are earning today there would be such a shrinkage of security values that railroad stocks would be practically wiped out. Extent of Investment. ‘The railroad problem is of even more immediate interest to the American public than the present involved inter- national tangle. The railroads need the public and the public needs the railroads, Mr. Lisman declares. He continues: “At the moment the international debt question looms large in the eye of the public in all countries, but the total net amount involved is approximately | only one-quarter of the total investment | the railway system of the United | States—that is, in the neighborhood of $23,000,000,000, on which during the current year, possibly not over 2 per cent will be earned. “While most people are confident that the present business depression is tem- porary, some seem to think that trucks and busses are going to cut further into railway earnings. At any rate, it is certain that in order to conserve the | capital invested in railroads something constructive must be done. “If the railroads should be perma- nently unable to earn not more than the barely 2 per cent which they are earning now, after having earned about 5 per cent during the five-year period ending with 1629, then the market ap- praisal of the capital invested in rail- road securities will be reduced accerd- ingly; it will shrink to somewhere be- tween $5.000,000,000 and $8,000,000,000, or perhaps even more which means the wiping out of practically all railroad stocks and the shrinking of bonds owned by savings banks, insurance companies, corporations, estates and individuals, whose purchasing power will be im- paired accordingly. Object of Rate Plea. “The railroads have asked for a 15 per cent rate advance not in the ex- pectation that they will be able to en- force such an advance on every com- modity. The public seems to think that the railroads will have smaller earnings if such an advance were enforced, but the public does not realize that the rail- roads merely ask for permission to raise the rates 15 per cent on every-{ thing because in the meanwhile, as promptly as possible, they want to s(uf:l\'I the effect of a rate advance on !:lchl separate commodity, because they cer- tainly do not want to put on a higher rate than the traffic will bear. “But if the railroads cannot earn a fair return they cannot continue to maintain their property to serve the public as efficiently as they do. They cannot transport the products of Cali- fornia to the Eastern markets within less than one week at a rale which a few decades ago would have been thought of as preposterously low. After used to modern facilitles hey take them as a matter of course, just as the present younger generation { finds it difficult to imagine the world without telephones, not to mention elec- tric light, gas, matches, steam trains, etc. “The railroad system has developed the United Stat's. It is continuously necessary, which is evidenced by the fact that even in the poor year of 1931 the steam railroads are still carrving ap- proximat-ly nine tons of freight one mile every day for every man, womnx; and child in the country for the sum o 1 cent per mile or about 9 cents per day per person. If this traffic wer> cnn:led on the highways it would take a \e;y long while to get the freight over !, ; congested highways into the citi’s an there would not be room for any other | AND NOW, WHEN THE CUPBOARD IS FULL (Copyright. 1931.) W S0y 7 COMMODITY PRICE HELD ENCOURAGIN |President’s Stand | On Short Selling | Rouses Criticism Minneapolis Chamber of INCREASE N TRADE * VOLUME FORECAST Recent Stabilization Called Commerce Head Defends Bradstreet Survey Reveals Sign of Strength in Home Business Structure. Special Dispatch to The Star. NEW YORK, July 11.—Security and commodity markets show the enervating effects of unduly drawn-out dickering over the debt moratorium and of in- creased skepticism regarding its ade- quacy in meeting the European emer- gency, both undoubtedly the outcome of exaggerated and impatient expecta- tions, says the Business Wcek in its report covering the week ending July 11. The stebilization of commodity prices in June is clearly encouraging, as are many indications of strength in the domestic business structure. The out- come of the seriously strained situa- tion In Germany is still uncertain, and the direction of domestic Federal Re- serve policy cannot as yet be definitely determined. But the European outlook hes unquestionably improved as a re- sult of the moratorium move and ener- getic international financial co-opera- tion, and the aprarent indications are thet the Federal Reserve authorities have embarked at last on an aggressive expansion policy through open-market operations. Such a policy is not only enforced by the necessities of the situation, but supported by the unparalleled credit po- sition of the Reserve System. If it is pursued persistently every precedent of previous periods of recovery from de- pression points plainly toward progres- sive and possibly rapid improvement. The index for the latest week regis- ters some slight reaction from the sharp slackening of business in June, but it is still too early and too contrary to the usual seasonal trend to expect any con- | clusive evidence of the immediate in- fluence on the level of production and | trade of new psychological and financial factors now in the picture. The index for the current week reads at 75.5, compared *with 74.8 for the previous seven-day period and with 1014 a year_ago. maintenance expenses. The quality of transportation will rapidly deteriorate and everybody will suffer accordingly if the railroads cannot earn a fair r-turn ‘e'l':l’lxg‘l]ee bulk of our Eastern trunk lh"les' are carrying approximately somewh-re | over 10,000 tons of freight every d-y’ in the year for each and every mile of their main and branch lines at th> nom- inal cost above mentioned. Some main lines are hauling as much as 180.000 tons each day per mile of line, which is equal to about 125 tons every s:cond. Public Needs Railroads. " . ital invested in railroads is equal to S:ep tland on2-half times the present debt of the United States Government. Many people can visualize what would happen to lots of investors if the obli- gations of the United States Govern- ment were to becomr worthless: the re- sult of railroad securities becoming worthless for lack of nourishment would the same. bE"’I'he old talk about railroad securi- ties boing watered has been proven in- correct by the physical valuation which the Interstate Commerce Commission has carried on now for years; also by somparison of the capitalization per mile of our railroad system with those of th> various hoountl'iu in Europe—and e Dublic carnot get on without the rallroads and the railroads cannot get on without the public. Congress regu- lates the relations between the two and has delegat-d this power to the col mission with a mendate that the rail- roads are entitled to a fair return, which has been fixed at 5% per cent, and that transportation rates should be fix:d ac- cordingly. Thg ’x"lflroflds for the last 10 years, up to the beginning of this year, have been spending about $15,000,000 a wee! to improve ana modernize their facili- ties. They hav'ehneoee;;:l‘%‘m l:g'l:l;- elled to stop el - :t.hu and even t‘d’&tflfl: reduce thelr on their money and thus be unable to secure the necessary additional capital. “The Government mu'S‘L) treat t}};l;l; fairly by allowing them earn a rem:n and by ceasing to subsidize the railroads’ competitors by supplying and maintaining free right of way for trucks and busses for long-haul business and by actually going into the busin:ss of sup- plying transportation by water for its own account. The Government is now doing this not only without earning in- terest on the money invested but act- ually at an out-of-pocket expens: each year even before charging anything for taxes, interest or maintenance of the waterways. Pleads for Fair View. “People are entitled to the best fa- cilities possible at a price which will give a fair return on the money investd and on an equal basis for all. In the long run this will mean truck and bus service for short haul and to and from all small communities, which, in many cases, is _&robably more economical rail service. “Quite likely 6 is also cheaper to move in| traffic by water whenever such traffic originates and terminates alongside of the wat rways. If tonnage is to be re- load=d, the savings of hauling by water, even over a frez right of way, disappear very rapidly. “The American people must tak> a broad-minded, fair view of the problems before them—national and inter tional. If they fail to do so the pres'nt period of depression may last indefi- nitely.” (Copyright, 1931, by North American News- paper Alliance, Inc.) SILVER QUOTATIONS. NEW YORK, July 11 (#).—Bar silver quiet, 28%, & decline of Y. | Speculative Practice. | R | By the Associated Press. MINNEAPOLIS, July 11.—Charles T. Stevenson, president of the Minneapols Chamber of Commerce, today took ex- ception to President Hoover's condem- nation of short wheat sales by specu- lators. He said, “the trouble today is | not too much speculation but too little. He said that the Federal farm mar- Keting act “has been successful in but one thing, and this is minimizing spec- |ulation—as a matter of fact, it has practically eliminated it.” This, he said, had the result of de- | pressing prices because it has removed | | speculative energy, which ordinarily | would furnish support for buying of | wheat. “Buyers fear that the Federal | Farm Board might at any time becom: an_extensive seller,” he said. | Stevenson called attention to the | presence of Federal supervisors in this |and other contract markets, to whom | sales must be reported daily. He said he considered it “strange in view of the | existence of these inspectors, together | with the powers under the Federal grain | futures act,” that the alleged manipula- tion reported to the President could | have or should have been permitted to manipulation.” “In this unfortunate and futile con- troversy it should be remembered that th‘: price of wheat was more than twice what mT;keunx. in Axgust, 1929,” Stevenson | said. ing were too low. No amount of expla- | fact.” BLAMES FARM BOARD. Former Exchange Head Defends Short Sales. CHICAGO, July 11 (#).—Joseph P. Griffin, former president of the Chicago Board of Trade, in a statement issued today, said that unwise marketing policy of the Federal Farm Board, rather than short selling, was to blame for dec‘}inlnw prices of commodities. He ST id “Short selling has never been the cause of permanent declines in com- modities, although that fallacious be- lief is widespread. The short does not add one bushel or one bale to the available supply of wheat or cotton, but he does create two buyers—one at the time he makes his short sale and again when he himself covers his short contracts. “The prevailing low wheat values are caused by overproduction. Current prices of wheat in Chicago closely an- proximate Liverpool values, and at the moment Chicago is about 15 cents per bushel above the normal parity with Liverpool. We are now harvesting one of the largest crops of Winter wheat ever raised. The carryover of wheat in this country and Canada from the 1930 crop, is unusually large, and this holdover roughly will satisfy about 75 per cent of our probable exports during the 1931-2 crop year.” JUNE AMERICAN STORES SALES ARE UNCHANGED American Stores Co. report sales for the four weeks ending June 30, 1931, of $10,938,706, as compared with sales for the four weeks ending June 30, 1930, of $10,950,207. This is a decrease of $11,501, or ore-tenth of 1 per cent. Sales for the six months ending June 30, 1931, were $69,490,301, as com~ pared with $71,538496 for the like period in 1930, a decrease of $2,048,195, or 2.86 per cent. e S JULY INTEREST. Holders of domestic corporate bonds, United States governments and foreign dollar bonds will receive $237,876,011 in interest in uly, according to the Standard Statistics Co. Calls, redemp- and /maturities during July will amount to $138,823,622, it is today when the Federal | Farm Board first became a factor in| “It declared prices then prevail- | nation or excuse can dispose of this| Factors Pointing to Early | Upturn in Business. By the Associated Press. NEW YORK, July 11.—A midyear survey of business by Bradstreet's, re- leased today, points out that there are a number of factors in the present situ- | ation which give a sound basis for opti- | mism as to the outlook for the last half | of 1931, | The survey finds that the most out- standing and basically important thing that has happened since the first of the year wes the continuance of the fall of commodity prices. | Although the Bradstreet commodity price index had shown a 25 per cent de- | cline from October 1, 1929, to January 1. 1931, the index had an additional drop of 7.7 per cent to July 1. |~ “However,” the survey says, “there are some signs of resistance which distin- | guish the decline of the past half year | from the decline of 1930. For two | months of 1931, April 1 and July 1, the Bradstreet index has shown increases, from October, 1929, to March of this year. Judging the commodity price movement from another angle, that of the breadth of the upward movements, it is found that more and more com- modities are showing monthly advances in the face of the general decline. The total number of these advances in the first six months of this year was 114, | which compares with a similar total of | 80 in the corresponding period of 1930 and with 66 in the last six months of 1930. Apparently a level of resistance is being reached. * * * “In conclusion, it need not be pointed out that at this midpoint of the yesr | there is a most remarkable balance be- tween the favorable and unfavorable | factors in the economic situation. There | 1s one factor in the situation that is wholly unpredictable—the psychological effect that even a small improvement can have on the general sentiment of | business. Business is apparently at about the same point as it was six months ago—perhaps better, and cer- tainly no worse. The temptation to make prophecies at this time is great. but under the present circumstances the most logical attitude would be to be surprised at nothing.” |RECORD WHEAT CROP ESTIMATED IN KANSAS By the Associated Press. TOPEKA, Kans, July 11.—Kansas’ 1931 Winter wheat crop was officially estimated today at 200,896,000 bushels. A new all-time record for the coun- try's chief producing State. The indicated production based on July 1 condition, compared with pre- vious records of 180.000.000 bushels in 1914 and 177,361,000 bushels in 1928. The State's Winter wheat harvest acreage, 12,566,000 acres, also set a new record despite the campaign of Federal Farm Board officlals for re- duced plantings. The acreage last year was 12,310,000, The bumper crop comes at a time when wheat prices have dropped to the lowest level in more than a third of ‘Wagon wheat prices in Kansas were quoted yesterday as low as 29 cents a bushel at some places. SAVINGS DEPOSITS GAIN. NEW YORK, July 11 (#).—Deposits in mutual savings banks in New York State increased $15,521,560 in June, the smallest monthly gain this year. June deposits brought the total amount due to depositors to a new high rec- ord of $5,097,298,447, according to fig- ures made public by the Savings Banks Association of the State of New York. The gain in savings deposits in June compares' with a gain of $22,092,778 in May, the previous smallest monthly gein- this year. FOREIGN ECONOMIC STATUS IS CLOUDED BY CREDIT IMPASSE Delay in Debt Holiday Plan Proves Unfavorable Fac- tor for Europe. BUSINESS TONE IS GOOD IN LONDON AND PARIS Stock Markets Reflect Revival of Public Interest—German Trade Slow. Special Dispatch to The Star. NEW YORK, July 11.—Radio_and cable dispatches to The Busin:ss Week give the following survey of business abroad for the week ending July 11: Europe.—World business is less buoy- ant. The delay at Paris was almost fatal to G<irmany and caused a renewal of the gold and foreign credit drain. Spain is faced with banking difficulties of the first order. Britain, sensitive to varfous foreign uncertainties, has given way to a degree of t-mporary nervous- ness though the general tone still is good. France is tempering domestic dis- satisfaction over the debt accord with an improved local labor outlook. Th> immediate future is not bright. Central Europe probably will pick up if the German situation clears. Italian indus- try is entering the Summer slack period, but is optimistic. ndon.—Despite the uncertainty caused by the delay in settling the mor- atorium issue, the business tons is good. Settlement 1s receiv:d as a strong oull factor, but the fullest psychological effect has been lost by delay and the near collapse it has brought to Ger- many. Cotton textiles are in a better position;: wool is steadier. Non-ferrous metals have staged a strong recovery. Commoditi<s in general relapsed late in the week. Outlook Improves. Stock markets continue to reflect re- viving public interest. Just now inter- est focusing on the long-awaited re- port of the MacMillan Committee on Banking and Finance. Due July 13, it is expected to include some criticisms of the Bank of England policy. Paris—In the last trying week of the Franco-American moratorium negotia- tions, the French business outlook im- proved slightly despite the generally un- favorable reaction in Franc: to the whole plan of a moratorium. One of the most encouraging factors in the improvement is the partial set- tlement of the strike among the textile workers. As a whole, business is less concerned over the ° sacrifices imme- diately involved in the Hoover mora- torfum plan than with the growing realization that the Young plan defi- nitely is dead. Two factors loom large. One is that this vear's budget deficit, already large, will be augmented by the $80,000.000 of unconditional pay. ments which had been counted as lia- bilities. The seccnd is the fear that this Joss will increased next year by France's guarantee to other creditor countries in case Germany demands & further moratorium. Early Franco- German political negotiations are scheduled to settle these problems, but | Paris is frankly skeptical of the results. Berlin.—Business is greatly relleved by the Paris settlement, though the half-month delay in the consumma- tion of the Hoover plan has deprived it of a great deal of its. original psycho- logical effect and has allowed the process of disintegration of the German currency and credit system to make dangerous, though not yet irreparable, progress. Gold Drain Resumed. After a short respite following the announcement of the moratorium plan the gold drain on the Reichsbank has resumed. Gold is leaking reached $25,000,000 on Monday, $13. 500,000 Tuesday and $10,000.000 Wed- nesday. The general council of the Reichsbank finally has been forced to reimpose credit restrictions which at first it was thought pessible to abandon. Current June indicators, including | savings deposits, bond sales and fail- continue without resort to the author- | whereas there has been a steady decline | ures, reflect the deepening depression, ity and measures which exist to prevent | while the one-half per cent rise in the cost of living index, the first in- crease in many months of continuous fall, partly is the result of the burden imposed by the emergency decree, in- cluding the doubled sugar tax. De- partment store sales have been re- markably maintained, due mostly to the stimulating influence of spectacular price cuts. This is not representative of the greater contraction in other retail sales. —e DEPLETION OF GOODS WILL BOOST TRADE BY EVERIT B. TERHUNE. What will bring about an upswing in_business? The depletion of goods in the hands of the consumer and of materials in the hands of the producer. When will depletion reach the point cf needful replacement? I believe that within 90 days we will experience a powerful forward surge in business that will be based on neces- sary and wholesome demands for both goods and materials. Is our high stancard of living justi- flable? Yes, according to all the economic pregress. Mention one reason why. ‘While population has been increasing 60 per cent, industrial production has increased 300 per cent. This 5-to-1 ratio means that people must use and consume more things if industry is to | function eccnomically. Our greates problem today is how to discribute tickets (purchasing power) more equit- ably so that the necessary flow of pro- cuction won't get diverted into barren buying territory. What is t# status of installment sell- ing at present? Like other types of sales, its volume has decreased. Does that mean that it is unsound? No. Since its volume in proportion to total sales has varied but little in the: past few years, it appears to have proven its soundness in a period when the rectitude cf financial and credit structures of all types has been severely tested. Tules of 5 it Business Publishers’ “’Ofl’fl!llll:’ g“fll"ko‘n‘;fli ) CHAIN STORE SALES. NEW YORK, July 11 (#).—June sales reported by 44 chain store com- panies showed an aggregate of $253.- 182,912, a decrease of thirty-four hun- dredths of 1 per cent below $254,054.- 594 reported for the like month last year, a compilation by Merrill, Lynch