Evening Star Newspaper, August 3, 1931, Page 15

Sale of U.'S. Products to Foreign Nations On Bong- Term Credit Showld Go a Long Way Towerd whereby the United States Mwu%fi;&ovgn lyav’vlflbe:l;moredltw kuthoworld dimouities, The .hm':fu toward solv- all, result in a mate: rlse ln price of the eom- modities affected. It is intimated that loans eoverlns such purchases will run for two years an wlll bear flsdrer cent interest. In order to be ective, loans should run for a eoudeug:s longer period of time and the rate should be more in line with ex- s.llnmey rates in the United States. e of the first tnnucuom contem- §§- 53 g | Glose. 16 IOI lll i 1 3 1 1% 11% PR e " e 2 2 Taxes Raised as Imm of|" Federal and State Estab- ‘Special Dispateh to The Star, NEW YORK, £ ; i€ sfig‘ i i [ ;E; Firm Opening Followed by Steady Advance in Piv- otal Issues., 33 g % Am 31% Am City P&L(A) al, * l 5% AmCit PAL Bb10%., 7 10% AmCom P A (b10%) 12 3% Am Corp warrants.., 16 18% 18% 8% 10% at Better Levels Buring Last Week. FT aa'-=§*=;s§“§§ EESE £ el ;?s?fiis~!‘ BY FRANK I "ll.l-ll;' Assoclated Press Farm Editor. Nnhkhwumthmchmeu f yelflln& BY JOHN A. CRONE. Special Dispatch to The Btar. NEW YORK, August 3.—Prices were slightly higher in quiet trading on the Curb Exchange today. The inactivity conformed to the dullness gripping all security markets and the price trend Nat m NM "l-Il' ll‘l:)fl 48% Am Gas & Elec (31) . 3414 4m Lt & Trac (3%) 1% Am Pneumatic Sy 8% Am Superpwr (p40 SonSunnnans » » - was a reflection of that on the Stock Exchange. The opening was firm and the only group to show any particular activity was the utilities. Electric Bond & Shares rose toa net gain of %, reached and advanced again. Cities Service was virtually unchanged. Standard Ol of Indiana was a small fraction lower. International issues were relatively inactive today due to the closing of the London market for the seasonal bank holiday. In the absence of overseas offerings, however, Ford Motor Ltd. and ‘Woolworth Ltd. common firme: Utllities Power & Light “B” “shares oke to a new low level for the year with an initial decline of 5% points. ‘The advance in Pennsyl CTU ofl prices was reflected in the quotation of South Penn Oil. Mean- while, the trade read with interest of the decrease in California crude output and watched details of operations in the Oklahoma field, awaiting some ac: tion from Gov. Murray. Ohlo Ofl pre- ferred opened up a point. Plesin DOMESTIC BO) usands. 1Alabama Pw 4%s '67. 9 Aluminum Co 68 '52 1 AReCE"E s oad 10 er !Am P & L 65 2016. 106%a 3 Roll M 435 /33 81 Amer Roll Mul'ss Ap) Gas 65 " o ST FPEEES 82320253 3338 P 5, 1Chi Dis E1 415 e s Eice 3t 35 1013 38 52027 6014 S1as A 49 66' s 63 East Ut Inv 55 " Edis I Boston 55, n m! s NG % § Empire Dist E 53 '52 O&R 5las '42 59 - 3% Atlas Util Corp. 1% Bahia Corp... 13% BeneflenalIL (1%).. 15 Bickfora$ Inc (1.20) 20% Bigelow-Sanford. ... 13 Bliss Co (EW) (n1) 3 dlue Ridge Corp. . 27 Blue Ridgecv pfal.. 12% Brazil Trac Lt&P(1) 168 Bt-A T cup B 97 710¢c, % Br Celanese rcts. ... 26% Buft N&EP pf (1.60). 3% Cable & Wire B rots. 1% Canada Marconi. 10 Cent PubSveA b Cent Pub Sve pf (4).- 50s Cent Stat El (b10%). 14 Cent StEIpfxw (8). 2 Cent West PSAally Qa NBeEe e T b - Brow Crown Zel pf A (3 Curtiss Mfg Co (A Curtiss Wright war. Cusl! Mex Mining. Dayton Alr & Eng. Deere & Co. ... De Forest Radlo. ... Derby Oil Refining.. Detroit Alrcraft Cp Dubilier Cond & Rad Duke Pow (5).....s Duquesne Gas Corp. Durant Motors. Eisler Electric Corp. Elec Bond&Sh(b6% ) 4 Elec B & Sh pf (8).. Elec Pow Assoc (1). Elec Pow Asso A (1) Elec P& Lt op war.. Ford M Can A (1.20) Ford Mot Fran 37%4e Ford Mot Ltd 36 3-6o Foremost Dairy Pr.. Foundation For Shs. Gen Aviation. ... Gen El Ltd rets 37%. Gen Pub Sve pf (6).. 108 Gen Theat Eq cv pf.. 10 Goldfield Consol. . 1 \Goldman Sach T C. [ Gray Tel Pay St3%. 1 t At&P T nv (16%) 2508 rtA&P Tt (7).. 108 Hammond Clock (2). 1 Happiness Candy. .. Helena Rubenstein. . Humble Of) (12%).. Insull Inv (b6%) Intercontinent F. Int Hydrocv pf3 Int Petroleum (1) Int Superp (+1.10. Int Utilities B. Int Utllities pr pi Kolster-Br (Am 8h). ® Bow par o Eis » » DO DO 0o N0 0 S i 05 119% 35% 1 60% 225885 1% 2% Paramount c-b Mtg. 26 hrn Davis (11.55). % Pub Utll Hold war.. 83% Puget 84 P&L pf (5) 98 Puget Sd P&L pf (6) 6% Republie Gas Corp. % Reynold & St Anthony Geld. 104 S Regis Paper 3% Solar 20 82 1% b vidend. stock. j Plus 1% 9% Niag-] ) 1% Niag-Hud Pow A W.. 1% Niag-Hud Pow C w. % Nitrate Cor) Bhe % Signature Hoslery. Refinin 12% South Penn Ol ( 28% lflClllleA'(l“). 24% Swift&Co (3). 6% Teck Hughes (60¢).. & Tonopah Belmont. ... 21% Ungerieider Fin Cp.. 17% Union Am Invest.... 9 Un NatGasCan (1) 4% Unit Founders. 4% Unit Gas Corp. 1% Unit Gas war. 84% Unit L& Pwr pf “). 17% Unit Lt &Pwr £ (1), 3% U 8 Elec Power w! 12 U S &Overseas war. 5% Unit Verde Exten (1) 6% Utl] PALt(at1.03%). Ut P&L B(at1.02%). L'Ill Pwr n Lt pt (7).100 14% uuu lnd of (l%).. 22% Vacuum Ofl (2).. Van Camp Pkg pf... *Vick Financial (30c) u&. Walgreen Co. den Copp: m Wlworth (FW) Ltd. ¥ “Y"Oll &Gas....... RIGHTS. Vestvaco. .. end rates in doliars Dbag L"'-h lmdnu. pre 8% in ‘stack. 2% in stock. &k 10% stock. 1 Plus 8% In stock. B Pald last yesr—no regular ri = =!u—.-unuu- E-.u---u--.-l 10 ChileB, 17 war 2 - ot 00 TR RO N I et et M g8 B s Invest. A AR N R LR AR RN BN AN R A S = FTatmmms PORWS Jo 23 2 1% Expire. .Sept 1 10 % based on iast quarteriy or semi-an- 1Partly extra. 1Pius ¢ b Parable ‘in stock Plus D stock. 10" stoek atock. m rnn 3% INCREASED GOLD OUTPUT URGED AS MEANS TO STOP DEFLATION Economist Points Out That Gain in Re- serves of Metal Will Result in Better Prices for Commodities. 15 Koppers O & c " 3 Kresge 53 1 Laclede 3 Nebraska Pw New Eng G&E 83 Eng G&E 55 nNew Eog G&E 5s '50 4 New Eng Pw 5 nluonum u,a IYNYP&LA i s 43 871 7 9 xw 104 168 1003 51 930 3 & EI Pacific G & E BC 8 Pacific Pw & L Bt wesezess 2328 e SRR RFOEES g 8S I3 & aes SEEEEF 5338 G $3ggaSegesa R BESF SES 552 :r:;%::s: * = & 333388 BIS33N! & With warrants. " warcants. Special Dispatch to The Btar. NEW YORK, August 3.—Increased for the next few years, a gain in gold reserves and a recovery m mmmodlty prices can be assured ac- cording to John S. Burke, president of the Midas-Lode Corporation of New York, and a well known economist and ennneer, it producers in this count: b Central llld So\llhdAflll;flclln dll'e -4 u\m‘ aware e inducement vl.lnnl higher gold values and eomequenb lower production costs and ty and San Francisco is suggest:d by this authority in an inter- gew wmnh mndolph Economic Service. e sald: - “The gold committee of the League of Nations has lrmrenuy reached & con- dition of absolute pessimism relative to any chance or probability of even hold- lnl current Iold pmdueuon that lously inadequate w me‘t previ l cndlc dmnds as evidenced s con position of Germany with serves that are $275,000,000 less they were at this time last Increase Is Possible. “There is am| that Canada will be able to increase its commodity circumstances we have to tinucus and ~level of prices. ¢ * un e evidence at this time ress would doubtless be severely handi- capped.’ Original Proposal. “The original proposal, of the League of Nations’ committee was to lower the if total output was but $275,000,000, ‘which mi q’:wer many other needs, not inclu Tuding India. And it should be remembered, also, lhglummaotmmk(orln- ternational Settlements conceived one of its functions as a met.hnd“ of muxn serves, a conception that appears to have been dissipated in the actual op- eration -of that bank and somewhat the -credit functions. interna- mmmfim and even an increase in the gold re- ion | lcad and zinc companies, Even | tent, of British production which implies the larger part of Canadian output despite a greater profit. This has been proven in the past and will undoubtedly con- tinue to be true of the future. “A domestic market for gold at a slight premfum should also encourage what may be called earmarked g:;f credits ;ruzhmllht bemeXpected m”:ell:;; e of the prevailing congestion fi,\e London market and the tendency or encouragement toward centralization, particularly in France. “I have not touched upon the indi- cationd of opening up visgin gold terri- tory, but at a suhsequent umon of the —were presented authorities. New Gold Areas. “Mr, Brownwell, chairman of the Board of the American Smelting & Re- fining Co.; Mr. Russell, an eminent mining engineer, associated also with that Otis corporation, and George Bmlth, formerly chle! of the United by three Amenun n: relative to sup) or alleged rich afln‘uu hm deposits in Si- f Russia. * “Mr, Russell dlrecled attention to the ties of the desert areas of Aus- Oentral Asia and dround the Sudan and trophical areas of the head- waters of the Amazon and joco “Mr. Smith .::nflmd his }'erme;rkl to explored partly explored areas of this country, stating that there is a fair chance that some appreciable gold deposits may be found, particularly in Western Montana and South Central del. and says the outlook in Alaska also encouraging. “The incentive to increased d is naturally stimul ductidn in those districts of this coun- try where former output was either dis- continued vrl:: ofmld'“ = dh\;:htn the cheaper gold an er pro- duction costs. the various California Seopensa 1n. ? han B s v e past ‘mont siderable_activity is also Arizona, Nevada and Montana. The San Counby district of California, ac- to the most recent reports, should be able to make an exception- ally good record frof now on. “Gold. production, where obtained as by-product, chiefly by the copper, this and sha b et year, any. sharp year will 'depend, to a , upon a return to higher ‘metals: e o Ry 274 | lished by the New York Trust Co. A serlous obstacle in the development of popular interest in the subject, ac- cording to the article, is that | burden is not feit directly by the fiscal than HZ,“;.“’T’I“ is to say, the total amount increased more than five times in the 14 | 15, years between 1915 and 1930. “Allowance must be made for the fact that the 1930 total includes annual ex- penditures for interest on the public debt and for public debt requirements, due, in a large measure, to the extraor. dinary costs of the World War. ever, v.hue are costs which the Nation hu bear, and even if both items, together in the year 1930 for ture of ll 118 Zfl 216, against 22,900,868 in 1916, are completely ell.mlmud the Federsl govern- mental functions by more than 370 per cent in the 15 years.” * ¢ * State and local government costs have increased \mlnurmpmly year after year, the articl 3 me; in 1928, . which amounted to $12,609,000,- 000, the ral Government accounted for 31.5 per cent; State governments, 14.5, and local governments, nperan The article eanunuu' Increase in Taxation. “The effect of increasing mental costs is m;:fluud in govern. owing an all- Fede: generally agree um the time has ar- rived when determined measures are necessary to deal with the problem of growing public expenditure and indeb- tedness and the mounting burden of & | taxation which has followed from them. “A more even distribution of taxes would alleviate the burden to some ex- tent, but taxes, after all, are the effect of governmental costs ‘and not their cause. If conditions are to be remedied, they must be attacked at their source. unnn i | In other words, it will be essential for governmental bodies 1o circumscribe their own activities, budget their ex- penditures with greater care, and, in short, stop squandering money which, in the last analysis, they hold and dis- tribute in trust for tie public they represent.” CHICAGO STOCK MARKET By the Associated Press. CHICAGO, August 3—Following 'is the complete’official list of transactions in stocks on Chicago Stock Ex- change today: Sales In lose. and on account 3 ‘59 5 esyeg, % 3= 5558, 208! et = 100 Interst P' cc 7l Y EEH £ estic. H il Aterial Serv d West Tel. PR :zzzigzzz 7 EEEy £ * & 35 *7i% gl u:f/- 120 1 2% 8t i it fiv. ] s§==§§s§§§s§§§s ERN IO 5 = 58as 3 223289501 28 3o F5F g:a__: ! Zate’ 13 555 L 33 3 geages SoutEen ES S §§3§§ss§§§s;;s sles S £ 388 w5385, ....u:n ¥ R sales n—lim ‘& B CHICAGO nmr m sf !f‘ 1;: | Sale rm.ed is the sale to Germany 75,000,000 bushels of whut hels 'arm Board, and about of about d b‘{ufl“ eotwn. Plans to sell eopper m nllo being considered. In this vuy, trade would e through the remoul of the neuimy for the immediate .g-vm 18 obliged t of commodities which the coun- ml:uy in nny case. Last gn Germany from the United tes of wheat, cotton and cogpet totaled 'm.uoooo marks, equivalen were more than ‘There is no reason wh to advantage between the inclu the various nited States ga o nited States gnd some of her debtor coun- Latin American transactions | Sup to about 172,000,000. In, 1925 sthe corr%ondim . DR. MAX WINKLER. ents could not be made |2 nations. In ns to other dnnn'll. ‘which ‘would nullify the desired Steel Earnings. Some people :have been wondering | Present why the earninfs of the United States Steel Corporation for the June quarter made a relatively poorer showing than those of Bethlehem. Exclusive of special income, the United States Steel Corpora- tion for the second quarter about 6 cents & share for or the preferred, while Bethlehem showed about $1.47 on especially smooth Few pn;b:gley mllz, t.hn Steel y one of coun! largest | tho g‘r:ducm of cement, a business which | the been especially depressed. Nor has the acquisition last year of the Ofl Well Supply Co. of Pittsburgh proved espe- cially profitable as yet. In , it may be pointed out that the National Supply Co., the biggest ent ise in the field, was obliged to pass divi- dend for the first time in its history. Another reason is probably the fact that United States Steel depends to an appreciable extent on rail busipess, which has not been particularly satis- factory. At the present time, however, United States suel is operating at a somewhat more satisfactory figure than Bethlehem, which would seem to fore- shadow a better showing for the Steel Corporation during the current quarter, as compared with Bethlehem. " Credit to England. Restoration of confidence in Great Britain’s finances is probably the main purpose of the credit announced Satur- day by the Federal Reserve Bank on behalf of England, to the amount of $125,000,000. The Bank aof France has granted a similar credit. Inasmuch as the rate which England will pay is appreciably below her own bank rate, this credit may be looked upon as distinctly satisfactory ar- rangement as far as Great Britain is concerned. It is, however, doubtful whether the country will make any use of it, as was the case with regard to a $300,000,000 credit arranged in the United States in 1925 in connection with the stabilization of the pound sterling, and of which the Reserve Bank })‘nnmmm to have taken $200,- added that the t is merely an agree- ment on the part of the Bank of France and the Federal Reserve Bank to pur- chase from the Bank of England prime acceptances. It may perhaps be German Measures. mm‘:nl.l lnu:u.ru ukk:en by Geru-: many prevent comp! econom! chaos and which include, among others, s the rediscou rise in cent, are not ing on Saturday, A Albert, H. Wiggin, the American of the committee, poinmd out thlt the principal duuu u?e( mnv% part of the existing short- term into long-term obligations. Before any long-term financing can undertaken existing German bonds will have to advance appreciably. Thus far there is no evidence of this taking place. Drop in Loans. On the basis of existing conditions the decline in the price of Austrian loang in the New York market cammot easily be explained. One may therefore conclude that the weakness was largely sympathetic in character. Of Austria’s provinces, three have obtained financial accommodations in the United States: Lower Austria, Upper Austria, and Styria. Their dollar debt approximates $4,000,000, |$13,500,000 and $3,750,000, respectively. Reduced to a per capita basis, the Upper Austrians owe American in- vestors $15.67; the Lower Austrians, Jess than 3.00, and the Stryians, some- what under $4.00. The per capita ex- penditure for debt service during 1931 amounts to $1.17 for Upper justria; 96 cents for Styria, and only 12 cents for Lower Austria. One cannot, therefore, say that these Austrian provinces are faced with a serfous debt problem, and that the American investor in their securities need have cause for apprehension. Incidentally, the above figures, per- taining to debt charges, apply to the total indebtedness, both internal and external. (Copyrisht, 1931 by the North American wspaper Alliance. Inc.) 1 Grain Market By the Associated Press. CHICAGO, August 3.—September | corn and wheat receded in late dealings today. September corn was sold by a leading s ‘while ber wheat declined in sympathy with corn of enlarged receipts owing to decreased grain freight rates. Th! domestic Winter wheat croo was unofficially estimated as the second largest cn record, and the Unife * States wheat vlslble supply ihcreased 6,363,000 000 bushels. unsettled, 33 lower, ! provisions unchanged to 5 cents decline. | . WHEAT— CORN- September December March May .. OATS— September December Mey .... ' BAI.'I'I‘\IO“ STQCKB. Special Dispatch to The Star. 5. 80 Arundel Corpo: Mt Ve 310U '8 Fidelity & Guaranty.. BONDS. 1000 North, Avenue Market ds 2000 United Rwy & Elec 1sp ited Ry & Elec IO WEL R ey % ‘Wilkins Mlm'lb!!' one of the princi- pal characters in Dickens’ “David Cop- perneld " is said to have been suggested by Dickens’ father and mother. off; oats, 7,711 down.'-nd» New York: Cotton Special Dispatch to The Star. NEW YORK, August 3.—After steady- ing a dollar a bale under professional covering, the cotton market today came under pressure again, and prices not only lost.all the early improvement, but broke a quarter of a cent, making new low records for the year. Southern in- terests sold steadily following the up- turn, and October broke below 8% cents, leaving the list 4 points lower to 1 point higher than Saiurgay. Spots were reduced 5 points to 8.10. Cotton range: . ceover .. BT RU BN | December 1 & January u s | Jareh May 51 a6 9 90 914 8386 NEW YORK BANK STOCKS 1., NEW YORK August 3 (#).—Over- the-counter marke*: BANKS. Bid. Asked. America . 401: a3y at Phel Commercial Nai A: 'riumuu CERTIFICATES. ried by J. & W. Seligman & Co) aturity. Bid. O t. 15, 1931 100 00 28-33 100 30-5i2 101 5-32° 101 7-32 STOCK AND BOND AVERAGES By the Associated Press. MONDAY, i FH fgik i § ] 5 T ] H " fggns AUGUST 3. 7! 32 30 of ffer. | momentary unrest. M the first time in weeks ll. could said that memory, is from July 1 to 17 the seven big feed- In‘ States took 41,000 head, compared ith 29,000 a year earlier. Thln ight natives have predominated by lfln‘ odds, sellmg largely at $4.50 ta $5.50. There has been a ma‘er mov:- ment out of the Mont.x. W) and the Dukotu re favorable sections of Wyo- ming and Northern Nebraska got a lot of cattle from the drought country and now grass is getting so short there that the trade believes a glut of thin West~ erns may show up any time. The week's advance accentuated the relative scarcity of strictly grained-fed steers. No doubt recent advances have caused some finishers to hold cattle for still better money, but marketings all over the country pretty clearly show that the season’s crop has been mar- keted and that the scurry for this type ofl;nnu nfil{h contt:me ow wel e price may carry on is another matter. ' Most of the current upturn came in th face of a rather sluggish beef market. Unless the out- let improves prices may be near the cracking point, except on choice, light yearlings and strictly choice steers scaling 1,400 pounds. Supply abate- ment in the latter has been evident for three weeks. Shippers have been the mainstay of the market on weighty bullocks, while all interests wanted light steer: yearlings, Fefll]ly light heifers mixed yearlings scaling under pounds. Hog Prices Gain. In contrast with last week's market, there was a good clean-up of hogs each day, and prices, under light loadings, advanced 40 to 65 cents, with packing sows, which now average 40 to 50 per cent of the run, advancing 25 to 40 cents. The top on hogs is equal to the highest peak since the middle of March and within 10 cents of the top for the year. A year ago the market was on the threshold of an advance which carried prices up almost $2 in two weeks, but a fuil repetition of such a bounce in values is not generally an- uciplt.ed this_year. A sharply higher fresh pork market a¢ Chicago had much influence on prices, although Eastern markets failed to advance materially. Sheep and lamb advances early in the week following improvement in the * dressed trade were substantial, but peak prices were not maintained, this being reflected in a draggy market and unvenly lower foot prices as the week closed. Late prices, however, still show 25 to 50 cents above last Thursday on fat lambs. Fat sheep and yearlings are mostly 50 cents higher, the shortage of the supply probably’ being responsible for maintenance of the advance. l Brokers’ Comment | NEW YORK, August 3.—Brokerage house commentators today wondered whether the selective liquidation wit- nessed last week would become more general. Any further decne, which is rather expected in some quarters, is likely to be slow and orderly, in the opinion of observers. Frazier Jelke & Co.—The key to the present market situation is the extent of investor liquidation, not the amount of necissitous selling to be accom- plished. For this reason the current decline is likely to be more gradual and less spectacular than the selling movements of last June, last December or last October, and the liquidation is more likely to smolder than to come to a spectacular climax, as the selling did in early June. Hornblower & Weeks.—We feel the Saturday morning foreign news is im- portant enough to shape the direction the early trading this week. Although some students expressed con- cern over the fact that the Bank of England found it advisable to contract foreign loans, despite the strenuous ef- forts which she had already made to put her own house in order by raising the rediscount rate 2 per cent in two weeks, we, nevertheless, feel that this situation was inevitable and the actual gl:n!mg of these foreign credits by ris and New York to London may at least mark the first step toward international co-operation. Shields & Co.—The adjustment of labor costs naturally will cause some d com- prise an influence to hastening the market to an attractive investment level where accumulation such as wit- nessed two months ago should lay the foundation for an advance in security Values that will be warranted by actual SS. thPenln!S Redmond & Co.—The downward re- adjustment of values may not be fully completed. In the absence of any new complications in the European situa- tion, there is ground for the belief that it may be accomplished without any wide. break' in prices, although still no definite assurance tnat the June !ows in the recognized averages will not Much depenm on what dunng the next few weeks and whether the Fall recovery in business comes up to expectations. Charles D. Barney & Co.~—The imme- diate problem presented by the market is whether the special liquidation of the past few days will become eonunnut And spread to the list in ‘enenl are inclined to doubt that it will X! there were at the resent time Ampor- hnt general 1i m"‘-’:flf luve it wot the market, we 'I.ll far. otmninnownmd nelnnlennbe f that the mar- slow downswing.