Evening Star Newspaper, July 26, 1931, Page 51

News of Markets Pages 1 to 4 Part 6—12 Pages CAPITAL TRAGTION GRIPS ATTENTION OND. C. EXCHANGE Sharp Advance in Stock Re- calls Wide Moves in -Recent Years. DIVIDEND BEING EARNED; TAXI RATE WAR WATCHED New' Figures on Insurance Death Claim Payments—Fifth Dis- trict Bank Notes. BY EDWARD C. STONE. Capital Traction stock, which has caused so much surprise.on the Wash- ington Stock Exchange by advancing about 10 points since the first of the year, and 6 points within the past few days, has varied a good deal in quo- tations in recent years. Comparisons show that in 1926 the stock sold from 118 down to 103. In 1927 the local utility issue made a high mark of 112 and dropped down to 103%. In 1928 the stock climbed to 11612 and at one time during the year was down to 1051, ‘The next year, 1929, found the stock reaching its highest point at 107': and then joining in the general crash late in the year and tumbling to 74, al- though bus competition with the street car lned had more to do with the slump tkan the Wall Street break. The ®ock sold well below par throughayt 1930. The highest it got was 92/ and the low mark was way 40. During the long and line the dividend had been m 7 per cent to 4 per cent, to g0 lower until it hit 32% vear. Then the turn came and it stfted back, very slowly at first and thenifaster until it has now in- a par value of $100 should have great intepst. . ‘Tractiontouched 43 during the week, but settle{ back & point in Friday's closing trgling, a small lot selling at 42. Earnigs covered dividend require- ments in fe first half year, the results causing grpt joy among the stockhold- ers. Wha{will happen in the last half depends of the outcome rate war. | D. C. Lymnh Cause Surprise. Insurand men here were Intensely interested h the announcement made by the Naonal Underwriter that the District ofiColumbia had the largest amount ofgdeath claim payments per capita of py section of the United States in 130. As noted in yesterday’s Star, per ppita payments on death claims averge $26.62, followed by New York with n average of $26.50. Further audy of the report covering conditions ]l over the ccuntry shows that there pre 714 life insurance deaths aroused such claims of $1,000 or more in 1930, which | accounted ir 18 per cent of the total. Of these leven payments were for $1,000,000 £ more, 16 from $500,000 to $1,000,04 35 from $250,000 to $499,- 000, and 19 for $100,000 or more. The claims for 500,000 or more amounted to $21,800,1¢ or 8 per cent of the grand total. The Jaims for $100,000 or more totaled $5230,087, or 12 per cent of the grand tal. Although the large life insurance death claimare more spectacular and attract mormotice, 82 per.cent of the Jarge volum/paid out on death claims in 1930 wento the beneficiaries of the many small plicyholders in the country. Not only ) life insurance companies pay huge pms annually for death claims, butin 1930 these companies paid $53,53p34 permanent disability claims, comjred with -$34,213,602 in 1928, a gaimpf $19,323,332, or 56.4 per cent. The largedlife insurance claims paid in 1930 on ® lives of women were on Elizabeth MAshforth, New York, who lefi $499.41life insurance, and Mrs. Joel C. Clorewife of a prominent Cin- cinnatl attorly, who left $200,000. Fifth Dtrict Reserve Notes. The July Hletin of the Federal Re- serve Board jows that the rediscount rate of the pderal Reserve Bank of Richmond hd changed but twice dur- ing the pastpar. Just a little over a year ago it been 4 per cent for a Jong time. & July 18, 1930, it was reduced to 3'per cent and on May 15 last it was Igf it now stan ‘The revlew{}vu building contracts comparisons May and April and May of last jar. Building contracts in the Richmdl district in May totaled $20,972,000 inglue, against $21,937,000 in April and P,943,000 in May a year 2go. Building peits issued in 15 citfes in the Richmdl district in May totaled 89,602,000, cogared with $9,274,000 in April of thigear and $8,492,000 in May, 1930. Commercialilures in this district in May numipd 149, compared with 156 in April }d the lower fisure of 124 in May a&ear ago. Liabilities in ay, 1931, toled 2,297,000, compared ith the highl figure of $3,878,000 in April and thelgher figure of $3,068,~ 000 in May, 13. Debits to idual accounts in the Richmond Bajin Masy totaled $641,- 000,000 in sn financial centers, against $654,0000 in April and $771,~ 000,000 in Ma} year ago. Other nancial Notes. Once 2gain hshington leads al the »ities m the f§ Federal Reserve dis- trict in depahent store sales, the gain of 8.7 pdcent over June, 1930, being well ady the district average of 3.4 per cen PennsylvaniaRailroad stockholders reached a new pk on June 1, 1931, at 241,454, On Ju1, 1931, the total was 240,734, a decre of 720 from the June 1 peak, but alicomparing with 233, 414 on Januall, 1931, an increase of 7,320 for thhalf-year period, and with 207,869 ofuly 1, 1930, increase of 32,865 for t112 months. Members of { Bank Women's Club ot Washington i thelr annual outing at Indian Spri Farm, near Pohick, Va., yesterday. | large representation of the members| attended, TREASURYERTIFICATES. (Peported by J| W. Selizgman & Co) rity. id. er. Rate—Matu 180 45 9f the taxicab | red to 3 per cent, where | New Chairman BANKER HEADS EDUCATION COMMITTEE. i RICHARD A. NORRIS. NORRIS APPOINTED 0 HEAD EDUCATION WORK F INSTTUTE Assistant Bank Cashier Well Trained for Post—Other Members Named. Richard A. Norris, assistant cashier of the Lincoln National Bank, has been appointed chairman of the Educational Committee of Washington Chapter, American Institute of Banking, Aubrey ©O. Dooley, chapter president, announced yesterday. The new chairman has long been identified with chapter work and is well qualified through experience to assume the leadership of this important committee. Mr. Norris received his education in the public schools of Washington and has held the offices of chief consul, treasurer, second vice president, and is this year serving as first vice president of the chapter. In addition, he has, at one time or another, served on prac- tically every ccmmittce of the chapter and has attended three naticnal con- ventions of the institute, at Philadel- phia, Tulsa and Pittsburgh. Course Enlarged. The educational program, the carry- ag out of which this committee is charged with, will be the most compre- hensive ever offered students from local banks. The enlarged curriculum, started entirety this Fall. At the time the new program was inaugurated students were required to complete five subjects in the standard course, whereas those who enroll this year will be required to complete eight subjects. The subjects now comprising the standard course are: Banking 1, law 1, law 2, economics, banking 2, credits, 1, credits 2 and banking 3. Under this plan students who take one subject a semester and attend two classes a week of one and one-half hours each, will require four years to obtain the stand- ard certificate. A new course will be offered in bank management and the committee has under consideration the inclusion of one or two other new courses in the curriculum. If these plans materialize, it will mean the addition of two or three members to the faculty. Committee Members. ‘The membership of the Educational Committee is composed of Robert H. Lacey, Columbia National Bank, vice chairman; Constance D. Fogle, I. J. Roberts, Riggs National Bank: A. E. Henze, J. Earle McGeary, W. B. Hibbs & Co.; Robert E. Lee, James A, Soper, Lincoln National Bank; Mabel V. Royce, se L. Royce, Norman E. Towson, Washington Loan & Trust Co.; Henry F. Kimball, Frank M. Perley, American Security & Trust Co.; Walton L. Sanderson, Lois A. White, Federal- American National Bank & Trust Co.; 8. Winifred Burwell, National Metro- politan Bank; T. Hunton Leith, Se- curity Savings & Commercial Bank, and Robert A. Sisson, Washington Sav- ings Bank. AR V) HIGHER OIL PRICES ENCOURAGING TRADE Extensive Shutdowns of Wells Re- flected in Stronger Tone of Market. Special Dispatch to The Star. v TULSA, Okla, July 25.—Higher prices for crude oil are spreading as operators are shutting in wells in two of the older major pools in Oklahoma, which heretofore have been an impor- tant source of supply. In the general advance a top price of 42 cents was reached this week, or approximately 7 cents a barrel over the quotations that prevailed prior to the July 8 ultimatum. Reversal in the course of crude oil prices, although applying to only 20 per cent of the daily production of the five Southeastern States, is the result of the withdrawal of nearly 150,000 barrels daily of fresh petroleum from a market available to inland refiners, whose crude oil requirements could be profitably met only from the field in which the shut- ting down of wells is being practiced. Oklahoma City operators have been most responsive to the new order. An- nouncement of the largest company in the fleld that it would co-operate with the movement has increased the num- ber of inactive wells to more than 500, It is now estimated that 75 per cent of the producing area and capacity are inactive. Curtailment has reduced purchases of three of the important buyers from 80 to 90 per cent. As compared with last week’s run of approximately 50,000 bar- rels & day from Oklahoma City by Sin- clair and Standard Oil of Indiana, this week's purchases averaged about 11,000 and 9,000 ls a day. Standard of New Jersey is running approximately 2,000 barrels, against 20,000 barrels a week ago. Continental Ofl also suf- fered, averaging about 3,500 - barrels daily, as compared with 13,000 a week previous. During the middle of the week the production of the field fluctu- ated from 64,000 to 110,000 barrels s Bept. 15 1038... 100 7:32 100 18- 100 1 100 18-32 100 3032 101 8-33 dally, as compared with a dally average barrels the week preceding. (Copyright, 193L) three years ago, will be offered in fits| of 140,000 barrels last week and 250,000 « FINANCIAL AND CLASSIFIED he Sunday Star WASHINGT ., 9 . SUNDAY MORNING, JULY 26, SECURITY MARKETS ARE QUIET PENDING GERMAN DEBT PLAN Financial and Political Crisis Abroad Acts as Brake on Trading. STOCK PRICE AVERAGES | ARE RELATIVELY STEADY Steel Dividend Action Is Expected to Give Clue on Wage Policy. BY CHARLES F. SPEARE. Spectal Dispatch to The Star. NEW YORK, July 25.—So long as there was confusion over the outcome of the London conference and the po- sition of Germany remained in doubt, there could be no incentive for either speculative or investment commitments in the American market. Consequently, a part of this week has witnessed al- moest complete stagnation on the ex- changes. Not in five years have trans- actions fallen to such a low state. With all this wihdrawal from the market by both professionals and the public, the | price average has held relatively steady. This is the most important fact of all those bearing on the situation. The po- litical and financial crisis abroad is of greater scope and severity and more far-reaching in its effects than any one set of circumstances producing panic among investors in this country on three separate occasions since October, 1929. Yet it has been faced with sur- prising calm by a peovle who are more conscious today of the bearing of Eu- ropean conditions on American, pros- perity than they were a month ago. ‘The reason for this is that securities have been liquidated. On the other occasions they bad not been liqui- dated. The promises for business in the second half of the year were better in June than they are in July. The German crisis was known to be serious six weeks ago, but only by those who dealt with Germany in the capacity of lenders. Latterly the trou- bles have led to insolvencies on a large scale, and every one has been conscious of Germany's plight. Still stocks hold well above the minimum figures of June 2. Commodity Markets Sensitive. Commodities have not acted so well. They, too, appeared to have been liqui- cated. On this assumption they en- {joyed a substantial rise in the latter part of June. They are more sensitive to international politics and finance than stocks, especially cotton, copper, rubber and wheat. So the commodity {average this week has been practically {at the earlier low reached in June. More | favorable symptoms have appeared in sugar and oil. These, by a small frac- tion, improve the general commodity status. Speaking in terms of merchandise, business also appears to be liquidated. It has had its advance deferred by the unexpected uncovering of conditions of credit in Germany and of political hatreds in France not realized either in American financial or dipiomatic cir- cles. It will pick up again- as these are corrected and removed for a period of years from the catalogue of bearish factors. Market _sentiment was helped by President Hoover's optimistic statement that the program adopted at the seven- power ‘conference in London should expedite recovery from the world-wide depression. The Bank of England raised its rate in order to check the flow of gold from its vaults and there were bank rate increases in Germany, Hun- gary and Austria. In the case of Ger: many, of course, the advance of the rate was automatic with the dropping of the Reichbank’s gold reserve to the danger level. Apparently, however, the Federal Reserve Bank has no intention of advancing its rate. This indicates closer co-operation between the Bank of England and the Federal Reserve, as a parallel increase in the New York rate would tend to nullify the beneficial effect England rate. The rate increases abroad need have no sequel in further heaviness in domestic bonds and stocks. Steel Dividend Awaited. ‘The domestic event that has played an important part in the immediate course of the market is the dividend action next week by directors of the United States Steel Corporation. Per- haps too much emphasis is being placed on this. The importance of the iron end steel trade as a barometer of general industry as not what it was before the days of automobile produc- tion. Neither is steel common the out- standing and constant leader of specu- lation. There are a number of corpor- ations that have a larger shareholders’ list than United States Steel. The real significance of the immediate dividend policy bears on the question of wages. If the rate is reduced it will be not because earnings have not been suffi- clent to cover the quarterly require- ment, but to allow, with good grace, the management to begin to revise downward the schedule of pay among its mill forces. On the other hand, should the current dividend be main- tained this decision will be accepted as an indication that wages are to be for an improvement in business in the second it of this year. If the question of the dividend is to be settled entirely on the basis of earn- ings dur the period ended June 30, there would be no question as to the outcome of Tuesday’s meeting. During the three months the average produc- tion of the company’s plants was under 40 per cent of capacity and prices were low. Conditions have been less satis- factory in July than in the June period, with steel mill capacity generally at a new low level and only 50 per cent of the ratio of a year ago. Current earn- ings, however, are not necessarily a true reckoning on which to determine the distribution of profits. Many cor- porations are cutting down on this dis- tribution. It is significant that the number of dividends omitted is now about balancing those reduced. Reserves Set Aside. ‘This is true chiefly of corporations and banks that have established only a moderate reserve in the years of a}enty and have no secondary reserve fall back upon when gross earnings decline, collections are slow and losses on securities or real estate cut into un- divided profits and impair surplus. The situation with strong corporations like United States Steel, General Motors, General Electric, Standard Oil of New Jersey, the Atchison, Pennsylvania and Union Pacific Railroads; American Telephone & Telegraph, Consolidated Gas of New York, Commonwealth Edison of Chicago, National City Bank, Chase National Bank, Bankers' Trust Co., the First National and the Illinois (Continued on Third Page.) the increase in the Bank of | maintained and that the directors look | IBALANGED DEMAND AND SUPPLY URGED AS ECONOMIC NEED Sale of Excess Goods in New Markets Suggested as Prosperity Aid. OVERPRODUCTION IDEA DISPROVED BY FIGURES H Statistics Show Reductions in Com- modity Qutput During Last Year. BY DR. MAX WINKLER. Special Dispatch to The Star. NEW YORK, July 25.—Only a rela- |tively short while ago practically the iwhole world was prosperous. ‘The United States was definitely in the lead. Today we find mankind in a state of gloom and despondency. All or most of the prophets who two years ago felt convinced that the boom would con- tinue, that there was nothing in the situation to warrant anything but un- qualified optimism, are now equally out- spoken in their predictions that we are in the midst of a crisis the end of jwhich is not in immediate sight. These prophecies will prove as unreliable as did earlier predictions. It is, however, of interest to recall that many economists and serious stu- dents of economics and finance incline to ascribe all our present ills to the problem of overproduction. To begin with, overproduction is rarely, if ever, the cause, but rather the resuit, of eco- nomic disturbances. Secondly, a study of production figures for 1930, as com- pared with 1929, and especiglly with 1928, reveals that the overproduction idea is, on the whole, rather illusory. Production Compared. We have selected eight principal commodities, including wheat, cotton, sugar, copper, coffee, ruboer, tin and lead, and, with the exception of coffee, we fail to discover any serious over- production in any of them. Compared with 1928, three of the commodities un- der review (wheat, copper and tin) show definite declines, four (cotton, sugar, coffee and rubber) show in- creases, while one (lead) shows no | change’ for 1930. ‘When comparison is made with 1929, we find that, in 1930, five of the eight commodities under review (cotton, cop- per, rubber, tir and lead) show de- creases, and only three (wheat, sugar and coffee) commodities show a gain. fact that the population of the world has gained within the past three years, indicating that. potentially, at least, the consumptive capacity, even though not actual coasumption, of the world has increased rather than fallen off. In any event, the statistics cited should tend to dispel the much-talked- of theory of overproduction, because, even absolutely speaking, the output of representative products in 1930 has not lonly not increased as compared with 1928 and 1929, but has, in a number of cases, registered losses. Metal Output Decreased. The decline is greatest in the output of copper, of which 1,603,000 long tons were produced in 1930, a decrease of 16.25 per cent as_compared with the preceding year, and 6.18 per cent from the 1928 output. Tin production last year showed a de- cline of 8.71 per cen from 1929 figures, and of 1.03 per cent as compared with 1928. The output of lead was €qual to the 1928 production, but showed a decline as compared with 1929 of 4.93 per cent. { The decline in the production of cot- ton was relatively small, amounting to only about .02 per cent as compared with 1929. Compar:d with 1928, how- ever, last year’s output shows a gain of 9.42 per cent. In the case of wheat. the increase in 1930 amounted to 6.79 per cent over 1929, while compared with 1928, there was a decline of 5.50 per cent. In the case of coffee, the problem ap- pears rather a serious one. Iast year's output was more than twice the 1929 production and even in comparison with 1928, thers was a gain of 10.97 per cent. Rubber, tin and lead show rather ap- preciable declines from the 1929 pro- duction figures, the losses aggregating, respectively, 4.86, 8.71 and 4.93 per cent. In comparison with 1928, the output of rubber showed an increase of almost 25 per cent: that of tin showed a decline of slightly over 1 per cent; while the output of lead showed no change. Lack of Balance. ‘The main causes of the economic dis- turbance reside in the distinct lack of balance between supply and demand, which in turn is responsible for the precipitous decline in the price of im- portant raw materials and agricultural products. The re-establishment of an cq(xllbrlum between supply and demand wolild, therefore, seem the most portant step which the world would have to take in order to restore normal- ity for the American people as well as for the rest of the world. This could best be accomplished by a method devised by countries which pos- sess an abundant supply of commodi- tics and goods as well as adequate credit facllities, which would render it possible for countries with low standards of liv- ing, but high potential consumptive powers, to acquire, without undue bur- dens being placed upon them, such ex- cess goods. Prosperity of a lasting character can come only when wealth production is shared by all, or, at least, by a great majority. (Copyright, 1931, by North American News- paper Alliance, Inc.) POWER RATE AGITATION MEETS LITTLE OBJECTION Special Dispatch to The Star. TOPEKA, Kans, July 25.—Agitation for lower power rates is being met by the utility companies with little oppo- sition. Many of them in the last few days have voluntarily reduced rates as conditions warranted and are continu- ing readjustments to cover their entire territory. Others are conferring with the Public Service Commission and ap- parently there will be a moderate re- duction throughout the State with little Iri iction. The State is spending $100,000 inves- tigating gas rates. It is confining its efforts to the Citles Service plants. This does not affect other compantes. companies are greatly-im- e B i.sA new steel ving their equipment. g:cr on line is being com- pleted over a 100-mile division of the United Power & Light Corporation and eventually will tie up all the North American properties in the State, which serve 250 cities and villages and over 000 1ATIS. ooy, a1 ) Account should also be taken of the! 1921. Classified Ads Pages 5 to 11 . I — | (Copyright. 1931.) INVESTMENT BONT |American Banks Hold $350,000,000 AUTO PRODUCTION | MARKET IS LOWER " ermman CrecitSCHEDIES | OWER Feature of Week Has Been Revival of Interest in New Issues. Special Dispatch to The Sta NEW YORK, July 25.—Apart from the disappointment manifested by the | investment market in the results of the | London Conference on the German crisis, the moct significant occurrence this week was the quickening of inter- est in the new-capital market. It car- ried more emphasis because it came at a time when trading in stocks and bonds was at the lowest level of activity in five years. Naturelly, the negative outcome of the London meeting was reflected in lower prices for bonds, both foreign and domestic. Disappointment was expressed | g fair total for short term credits in almost universally and the decline in German bonds to new lows since their For the market as a whole, however, it was more a case of inactivity than of price changes. Comparatively speaking, prices held surprisingly wéll. They did not duplicate their June lows, at least, and the market was so thin that in the case of some German industrial bonds losses of 16 to 25 points were caused gc;;fih the sale of fewer than 10 n The fact that offerings of approxi- mately $7,500,000 in bonds, which had been on the books of floor traders, were withdrawn showed that the time had come when investors—both instifutional and individual—felt that it would be like throwing money away to sell at prevailing prices. It was noticeable that all markets were thoroughly liquidated. Bank Rate Advance. Probably the most direct appraisal of the London decisions was the ad- vance of 1 per cent in the Bank of England rate. It is true that the in- crease_was not duplicated by the New York Federal Reserve Bank, but it was evident that this was due to the bank’s closer relations with the Bank of Eng- land. An advance in the New York rate would have rendered the higher rate in London ineffective in its sole purpose—to check the flow of gold to France and America. No small amount of satisfaction was expressed at the at- titude of the New York banks in ab- staining from shipping gold from Lon- don to New York when foreign ex- change quotations made that operation profitable. It was somewhat surprising, there- fore, to find a number of ifew public utility bond issues very quickly ab- sorbed. Bond underwriters_themselves were pleasantly surprised. It was dis- covered that there was a broad demand for high-grade new bonds and amore acute demand for- high-grade short- term paper than at time since the start of the bear market in October, 1929. The United States Treasury sold two batches of 90-day bills at an an- nual bank discount basis of less than .50 per cent. Probably it could be argued that the premiums thus placed on safety are evidences of a renewed cautiousness on the part of those having surplus funds. But bond dealers expressed gratifica- tion at the existence of a good demand for bonds at the slowest season of the Jear. Offerings During Week. ‘The total bond offerings of the week, 737,000 in the same 1930 week. But a matter of fact, this week’s offer- ted well aver $60,000,000. ugh issues such as the Common- wealth Edison $20,000,000 of 3! per cent notes have already been oversub- bed, they will not be formally of- fered until next week. Municipals have been scarce, but many new offerings are in course of preparation. One of them is a $45,000,000 block of Detroit city bonds, authorized by the City Council to refund maturing short-term loans. The foreign market ended the week \ ') {of | ; | 000, consists of credits maturing from recent recovery was_simultaneous in | New York, London, Paris and Berlin. | | Credits not yet due are not of pressing | interest. | ture for several months and doubtless | could be renewed easily in most cases. | Large Eastern Institutions Have About 90 Per | Cent of Total. ‘ BY CARLTON A. SHIVELY. Special Dispatch to The Star. NEW YORK, July 25—Wall Street bankers have prepared for their own purposes a survey of credits granted by American banks to German government, state, municipal and corporate custo- mers which are outstanding. Participa- tion of American banks is less than half the total estimated at $1,200,000,000 to $1,500,000,000 for all Germany’s credi- tor countries. The much-talked-of credits which American banks are now, by common consent, maintaining, amount to around $350,000,000. Large Eastern banks have about 90 per cent this. Assuming that $1,300,000,000 to be force in Germany, half, or $650,000.- 90 days to over a year. The remainder are credits due in less than 90 days. Many large ones do not ma-| Banker are chiefly concerned over the one, two and three months’ credits. The $650,000,000 is a world total figure. The share of American banks is about $350,000,000. Since so large a share of the total is domiciled in Wall Street, it is easily controlled and it is not particularly difficult to secure agreement to let this portion of the credits remain out. These credits are quite safe. With a return of confidence and a flow of capital in her direction, they will rapid- ly _regain their liquidity. Wall Street estimates tha® not to exceed $35,000,000 of these short-term credits are extended, directly or in- directly, by banks in other cities. Some interior banks have been making vigor- ous protests against standing pat on their share of th: temporary frozen |also credits. There is nothing to prevent any portion from being withdrawn, but so difficult is withdrawal, on account of the red tape involved in the new German financial control measures, that the average bank will find it better to maintain its position as creditor. (Copyright, 1931.) REICHSBANK RECOVERS MARKS BY EXPORT PLAN Special Dispatch to The St NEW YORK, July 25.—Some of the frightened German marks that were |g turned into dollars or francs or sterling a few weeks ggo did a chameleon stunt within the last week and are now Ger- man money again This was disclosed by today's statement of the Reichs- bank, which shows gains in_ foreign currency reserves and smaller losses in gold marks, despite the reopening of the banks in that country The report, covering the period from July 15 to July 21, shows holdings of 1,352,800,000 gold marks, or a decline of only 13,300,000 marks ‘against a loss of 85,700,000 in the preceding week. ‘This, of course, partially reflects bank- ing decrees that banned capital ex- port, and these also are shown in the increase in foreign currency reserves of 35,100,000 marks against a decline of 246,500,000 in the previous week. Issuance of more money is shown by the gain in circulation item from 4,161,- 800,000 to 4,194,600,000 marks, or a rise of* 32,800,000, after a jump of 50,- 100,000 marks in the preceding week. In the previous week the banks had been closed for three days, so this week re- flects the extent of demands for cur- rency on the of depositors seeking to withdraw their funds from banks. (Copyright. 1931.) = at or near its lowest level on the move- ment. Little can be hoped for in any part of it until the market is convinced of a substantial betterment of condi- tions in el to o e | Eeitried Suring Augush July Output of All Factories Estimated at 200,000 Units. BY EDWARD W. MORRISON. Special Dispatch to The Star. DETROIT, July 25—Production of automobiles for the month of July is currently estimated at slightly more than 200,000 units. The periods of violent hot weather which have visited almost every section of the country have not contributed to motor sales, nor have the unsettled financial conditions here and abroad been such as to spur business for the dealers. The industry generally will be satis- fied if production reaches as high as 205,000. This will be something of a drop from the June figures of 254,000. It represents also a contrast to produc- tion of 275,000 units for July, 1930. Nevertheless, when figures for the pre- vious months lt the year are placed side by side, comparison shows the decline is hardly more than seasonal. Vacation Periods. ‘The manufacturers of cars in the low-priced brackets continue to' enjoy the lion’s share of the business. How- ever, Hudson-Essex was able to report a 21 per cent increase in production for the first two weeks of July, compared to 1930. Vacation periods will, of course, continue to interrupt the schedules. Reo and Graham-Paige each will be closed from August 1 to August 17. In the final tabulation of July pro- duction figures, it would not be sur- prising if the Ford Motor Co.’s share would show more than normal shading. Ford activity has been at an ebb. June production in Dearborn was, in fact, hardly up to the expectations of the rest of the members of the industry and it would not be surprising if this month the Ford sales curve shows a down- ward trend more marked than that for some of its competitors. Although Chevrolet reports a steady continuance of sales, the spotlight seems to have been seized for the pres- ent by Walter P. Chrysler with his new Plymouth. The factory schedule orig- inally called for 20,000 Plymouths for July. Once the car was on the market, the dealers began clamoring for them. Now the factory instructions are' “As many Plymouths as can be turned out:” and this probably means between 25,000 and 30,000 for July. ‘World’s Fair Building. General Motors, it is revealed, will be on hand at the world's fair in Chicago in 1933 with its own building. Willlam . Knudsen, president of Chevrolet, signed contracts the other day for the expenditure of $1,000,000 for the proj- ect. The building, which will provide 100,000 square feet of display space, will be located along the lake shore near Thirty-first street. (Copyrisht, 1931.) AUGUST TO WITNESS BUSINESS ADVANCE Indexes ‘Have Improved During Past Two Weeks, Records Indicate. Special Dispatch to The Star. BOSTON, July 25.—In the last two weeks, says the United States Business Service, business indexes recovered the losses of the first part of July. The United Business Thermometer records business this week at 27.2 per cent be- low normal, which is 2 points above the monthly figure for June. The pres- ent u trend has now gained sup- port the steel industry, which had been successive new lows since March. improve- ment is by major FOREIGN BUSINESS AGTIVITIES REMAIN IN STAGNANT STATE Trade Conditions in Europe Await Result of German Credit Plans. HEAVY LOSSES OF GOLD DEPRESS BRITISH POUND Commodity Prices Continue Low, but Wheat and Coffee Are Higher. Special Dispatch to The Star. NEW YORK, July 25.—Cable and radio dispatches to the Business Week give the following survey of business abroad for the week ending July 25: Europe.—Business activity has been subjected to a process of refrigeraticn and i3 awaiting new developmeuts of the ecrisis in Germany, whose foreizn trade is completely disrupted by meas~ ures for government control over mone- tary disturbances. Stcck markets are temporarily hibernating; conditions in commodities are no better. The most disturbing factor of the ‘week is the fresh drain on British gold, emounting to 85 millions in the six days before the discount rate was raised to 312 per cent. French and Dutch were the greatest takers. ‘The British position, as an interna- tional banker, is likely to be sorely tried in the next few days despite the cur- rent opinion of the English that they can easily weather a $150,000,000 gold loss without undue inconvenience to the London money market. The present rate of efflux, however, is too precipitous to continue more than an- other week without producing an anal- ogous financial crisis such as Germany has just experienced. This is due to inadequate knowledge by foreign coun- tries of real internal conditions. Ac- cording to Parker Willis, this is the most important reason why Germany was allowed so long to continue in the uneconomic plight which has existed for many months. French Not Optimistic. ‘The fact remains that despite the dogged optimism of the British regard- ing their ability to tide over this criti- cal period, France and Holland are not so optmistic. French holdings alone in England are conservatively estimated well above one billion in balances and deposits, togzther with hcldings of bills and treasury bills which as customary, at first premonition, she will repatriate. ‘This would weaken, if not entirely wreck, the English money market. The feeling is not uncommon in France that French banks should withdraw these funds from England in retalia- tion for the recent English pro-German sn;?a'.hifi. cscow adroitly suggests that the only real point of contact in the seven- power conference in London was the fear of a general proletarian revolu- tion. Otherwise, everybody was for himself. Berlin.—Despite the gradual relaxa- tion of the bank moratorium, business is fhcreasingly hampered by other re- strictions added daily by new emer- genéy decrees. Under this drastic paralysis of the credit machinery, the couhtry cannot keep going for long. ‘That business and the public are do- ing their best to adapt themselves to the regime of mitigated bank holidays and still are showing remarkable disci- pline was manifested in Berlin Monday, when the banking moratorium was partially removed. Only 4 per cent of the depositors in savings banks availed themselves of the new opportunity to secure small cash payments. Food supplies are functioning normally, and prices have not increased. Other re- tail trade is practically dead. Buy- ing is reduced to an absolute minimum suggestive of the complete absence of inflationist psychology. Street rioting has been exaggerated in the foreign press. Actually it is limited to a few western towns and even there the police force is in absolute control. Markets Remain Stagnant. Rumors are current that Americans are interested in public utililies with the object of taking over properties in some of the financially distressed com- munes. Allegedly the National City Bank shows an interest in the communal owned shares of Rheinisch Westfall- isches Elektricitaetswerk—A. G. London.—The increasing seriousness of the German crisis, the reality of having the negotiating statesmen of seven countries meeting in London, the menacing gold drain—120,000,000 left England in seven days—all have had a sobering influence on business. There are, however, no signs of panic. Stock and money markets have reacted most conspicuously, but, except for erratic fluctuations of the exchange rate, there has no great change during the Cotton and woolen textiles, iron, steel, and coal are all quieter. Of all the commodity prices, tin and corn show the greatest weakness. Wheat and cof- fee are up. The first empire sugar conference is meeting in London, with 40 . delegates attending. Marketing problems occupy the .center of atten- tion, with_empire preference urged. Paris.—Business has been doubly sensitive to news from London. Of basic importance is the outcome of the London seven-power conference and the meetings following in Berlin. Related, is the critical situation, which has developed in Britain's own bank- ing world and which has caused heavy London withdrawals by France and Holland. ‘The Bourse is erratic, with prices generally down. Commodities foilowes the world trend with no unusual activ- ity in any line. Signing of the trade agreement with Russia has aroused the interest of manufacturers of electrical equipment and machine tools, Who an- ticipated a prompt renewal of Suviet business on a much larger scale. R RN S | INDUSTRIAL EARNINGS BETTER THAN EXPECTED By the Associated Press. NEW YORK, July 25.—Aggregate net earnings of industrial corporations which have thus far reported for the second quarter of 1931 make a dis- tinctly better showing than had been erally anticipated, a survey issusd Moody's says. This preliminary complication shows profits for 107 com- panies which were 40.2 per cent higher than in the three months,