Evening Star Newspaper, August 31, 1931, Page 14

A—14 ¥¥¥ FINANCIAL RACKET Real Estate Bonds Hit by Swindlers Who Mis- inform Public. Bpecial Dispatch to The Star. NEW YORK, August 31.—The disor- anized condition of the real estate mar- et has given birth to a new financial racket, according to H. R. Daniel, of the investment house of E. D. Babcock & Co. The new racket is partly respon- sible for some of the huge declines in the market values of real estate securi- ties and Mr. Daniel warns holders of these bonds to investigate carefully be- fore selling them at greatly depreciated prices. “Taking advantage of the fact that many real estate bond issues are going into default,” he said today, “and that millions of dollars’ worth of defaulted issues are now in the hands of the pub- lic, illicit operators are getting in touch with security holders and giving them highly colored and distressing state- ments regarding their bonds. The result is that in many instances they virtually give away their bonds. “It is quite conceivable that much of the hysteria and mistrust now existing among real bond holders is due to the activites of these swindlers, Many pa- thetic stories are being told regarding the tragic losses that have been sustain- ed—losses which in some cases mean the wiping out of the lifetime savings of elderly persons. “Those who own real estate bonds should. for their own protection, be wary of persons who attempt to induce them to dispose of their holdings. They should, first of all, dea) only with per- sons whom they know to be reputable and be sure that the prices at which they dispose of their bonds are in line with the current quotations in the un- listed market. “It is extremely unfortunate, from the standpoints of the real estate situation, that such a confused situation exists at this time. There probably is no type . of security in which there is such a wide discrepancy between intrinsic worth and market values as exists in the real estate market today. Many issues are changing hands at prices utterly out of line with their real worth, while many bond holders are holding onto securities that can hardly ever be expected to show much appreciation in value.” " U. S. TREASURY OFFERS $1,100,000,000 IN BONDS ‘The Treasury is offering $800,000,000 in 3 per cent Government bonds and $300,000.000 of 1's per cent 12-month Treasury certificates in connection with its September 15 quarterly financing. The bonds will run for 24 years, with an option to redeem them after 20 years. Treasury maturities September 15 total $634,387,000, including $334,211,000 of 2% per cent certificates and $300,- + 176,000 of 1!, per cent certificates. The cffering of bonds by the Treasury 1s in line with its decision to take ad- vantage of the present easy market to divert some of its short-term obligations into longer-term issues. This is the third issue of bonds made by the Treasury during the present calendar year. The 3 per cent rate for 20-year bonds by the Government is a new low record for an issue of this maturity. The interest of 1! per cent on the certificates also constitutes & new low record yield for this type of issue, —— Equipment Stocks. NEW YORK. August 31 (Special).— One market commentator today, in re- viewing the conditions that eventually will make for better business, refers to the deplorable state of railroad equip- ment and the need of putting this in shape to take care of the normal traffic Tequirements. This eventually means » a great deal of work for the equipment, companies. It will probably precede purchase of new cars and locomotives, orders for whch the last three years have been at a minimum. The stocks of all the equipment companies reflect the absence of new business. with sig- nificantly low levels for the™7 per cent preferred issues of American Car & Foundry, American Locomotive and Baldwin Locomotive, which are selling * 2t an average return of over 11 per cent. INVESTMENT TRUSTS NEW YORK, August 31 (#).—Over- the-counter market: . Bid. Asked. C Tr Shrs D 4 , A 0: Gen Sec B . ¢ Gen Sec 33 pf Br & Con 67 pf Am Comp Tr Shrs . 3 Denos. Repos Second Int Sec Tt Sec ° Secur Corp Selected Am Selected Income Sh Trust Sec o 18R en < s ) BBy a5 aoaunuwanon S, oatl® e s | three or four months. FINANCIAL., Stock and Dividend Rate. Socony-Vacuum 1.60. South Port Rico Sug. Sou P Rico Sug pf(8) 40s Southn Cal Ed (2) 3 Southn Pacific (6). Southern Rwy (m6). Southern Ry pf (5).. Sparks Withing (1). Stand Brands (1.20). Stand Gas&El (3%). Stand Oil'Cal (h2%). Stand OJI NJ (12)... Sterling Secur (A).. Sterling Secur pf. Stewart Warner.... Stone& Webster(m2). Studebaker Co(1.20) Sun Oil pf (6)..... Superheater (2%). Sweets of Amer (1) Symington exas Corp (2)..... Tex Gulf Sulphur(3) Tex Pacific Coal&Oil Tex Pacifie Land Tr. Thatcher Mfg Co. Thermold Co. ... Third Avenue. . Tide Water Asso Oil§ Timken Roller B(2). Transamerics (40¢) nion Oil of Cal (2). on Pacific (10). t Alrcraft. . 7 Unit Alreraft pt (3). 16t Unit Corp (75¢) 1 44% Unit Corp pf (3) 3 Unit Electric Coal 484 Unit Fruit (4)..... 25% Unit Gas&Im(1.20) s Unit Gas&Im pf(5) 3 U S Gypsum (1.60). (Oontinued From Page 13.) Bales— Add 00. Hig! 1 102! THE EVENING STAR. WASHINGTON, D. C, MONDAY, AUGUST 31, 1931 NEW YORK STOCK EXCHANGE Received by Private Wire Direct to The Star Office. ~Prev. 1951+ High. Lot h. Low. U 8 Ind; 102 US U 8 Pip U S Smi » U8 S U S Ste United 6% 108 71% 3814 Vulean 26 B Waldor! 17% ‘14 36% 2 31 4% 374 66% 5% Yellow Westva Willys- Worthii 800 | 15w 29 14 no regular rate. n Pl COMMODITY PRCE QL0 SGNEN Statistical Survey Discloses Prospects in Various Lines at Present Time. Special Dispatch to The Star. NEW YORK, August 31.—A digest of contained in a current bulletin by the | Standard Statistics Co., of New York, follows: “ ! Barley—We advise buying moderately | ahead on_1-cent dips. | Brick—With the busiest season of | the year now past, there is no evidence | to_indicate a near-term price advance. Burlap—Five-point breaks should be | taken advantage of to satisfy needs for | the next six months. | Butter—Purchasers are still justified | in buying ahead on !;-cent recessions. Cement—Inasmuch as price bemr-i ment probably will be postponed at | least for several months, wo do not | advocate forward buying at this time. | Cheese—Is still an attractive buying | zcne, and we advise fairly heavy pur- chases for seasonal account on frac-., tional declines. Cosl, anthracite—The outlook for this division is unsatisfactory and we advise that ccmmitments be deferred. Coal, bituminous—Expectation of ex- | pansion in consumption and prospects | for higher prices lead us to advise cov- ering requirements three to six mcnths | in advance. | Coco2—We continue to advise taking | advantage of 10-point recessions to | satisfy needs for the next six months. Coffee—Pending definite clarificaticn | of Brazil's financial difficulties, we would restrict forward purchases to 20-point declines. | Copper—We expect intermittent price strength during coming month. Cover- | age through the first quarter of 1932 weculd be justified on further set-backs. | Corn—Only minor price fluctuations | are expected during ths near term. We | would restrict purchases to immediate needs. Cotton—Poor statistical position points toward lower prices and makes hand-to-mouth buying policy wise at the present time. Cottonseed oil—Current quotations have rather thoroughly discounted ad- verse influences, and purchasers are ad- vised to build up a reserve supply cn 20-point declines. Eggs—We continue to advocate a | policy of moderate storing during periods of price weakness. Flour—A probable change in wheat price trends necessitates unusual plia- bility regarding industrial flour pur- chasing policies, and fairly long-term coverage probably will become advisable before the year end. Gasoline—We would contract some- what mcre liberally for future require- ments. Hides—In view of possibly lower spot prices, we continue to advise that ad- ditional commitments be made only on reactions. . Hogs—With little prospect of in- creased demand during the near future, we would restrict purchases to current requirements. Jute—We continue to advocate a policy of accumulating known require- ments for at least six months abead, taking advantage of any moderate weakness which might materialize | within the near future. Lead—Prices should display irregular strength through the remainder of 1931, Early 1932 requirements should be cov- ered on recessions. Linseed oil—Coverage of at least six months’ requirements at 8.3 cents or is advised. Lubricating oil — We advise a more liberal buying policy *han during re- cent months. Oats—In our opinion, prices are well deflated. and moderate forward pur- chases are warranted on 1-cent dips. Paper—With production exceeding demand and stocks high, we see no reason for making long-term commit- ments in the wrapping and fine paper division at this time. Parafin—We continue to advise building up a reserve supply at current prices or on !i-cent declines. Petroleum—We would contract liber- ally for requirements over the next Pig iron—Unpropitious price outlook justifies maintenance of hand-to- mouth consumption policies. Rayon—cellulose = acetate—We con- tinue to advise purchasing for immee diate needs only, Rayon—viscose—In anticipation of a moderate advance in prices, we advise that requirements be covered for at least three months in advance. Rosin—We advise that requirements up to the next season be covered grad- ually on 10-point recessions. Rubber—We think coverage should be assured for the next several months on | further price’ recessions, say to 5 cents, | but advise against longer term commit- ments in the face of the unfavorable statistical situation. Rye—Although price strength is con- wheat situation, we advise moderate forward purchases on 2-cent declines. Shellac—Consumers are justified in taking advantage of market weakness to build up a reserve supply for future requirements. Silk—ran ndications that further | bonds. and the market | result of the bank failures. | turn gained impetus as the July re- | ports revealed no check in the slide of tingent upon the clarification of the | price adva will be witnessed lead us to counsel forward-buying for known Stock and ‘ Dividend Rate. U 8 Gypsum pf (1) Leather (A), U 8 Realty & Imp(1) U 8 Rubbe: . 83 siven in the abovs table a based on the latest quarterly or half tra. 1Plus 4 Bales— : Add 00. High. Low. Cl 1132 132 us Alcohol e & Fdry (2). tg&Ref pf 3% 1.Corpn (4).. 162 el pt (7)., 41 Stores (A). 37% 89% 87 Univ Leaf Tob (3).. | P&L(A) et2.15. 281 Vanadium Corp..... 9844 Va Elec&Pwr pf (6).100s 107% 19 28% 16 29 Detin (4)... Wabash RR. . £ Sys (1%).. & Warn Bros Pictures. Warner Bros pf 3. Warren Bros (2 Warren Bros cv pf 3 Wesson O&Sno pf (4) West Pa EI pf (6) West Pa West Pa Pwr pf ( Western Maryland. . Western Pacific pf. . Westinghse A B(2).. Westing EI&MIR (4) 139, 654 Weston Elec Inat (1) 3" 1315 51t (T) co Chlor (2). White Motors. ..... White Rock (14%3).. White Sewing Mach. Overland. Woolworth (2.40) ngton Pump. Wrigley (Wm) (4).. Truck 14% Youngs Spring (3).. 107 Zonite Prod Corp (1) 3 Sales of Stocks on New York Exchange. E L/ ¢ S| ) 200,000 12:00 Noon. 500,000 2:10 P.M. < the apn -yearly dec % in stock. TPlus 9% in stock. b Payable in stock. e Payable In ock. . h Plus 2% in stock. i Elus 80 n’ k'Plus 3% m Paid this lus 5% in stock 2%% 1n stock. INVESTMENT MARKET SHAKEN BY HEAVY SALES DURING MONTH Bond Av;rages Driven to Lowest Point Since 1921—Foreign Situation Was Chief BY F. H. RICHARDSON. Special Dispatch to The Star. NEW YORK, August 31.—Persistent liquidation, thing but the most conservative of bonds, characterized the past month in the investment market. Measured by the averages, the bond market was driven to its lowest point since the latter days of the 1920-1921 depression; but this is hardly a fair comparison, because the dip in railroad securities accounted for fully 80 per cent of the depreciation in domestic bonds. In the foreign department one crisis after another brought liquidation into virtually every group of dollar bonds and the month ended with the list an average of approximately 70 for all foreign bonds. This indicated a mar- ket value of only $4.500.000.000 for the $6,500,000,000 par value of dollar bonds outstanding. ‘The British crisis came as a body blow to a market that had not fully | recovered from the effect of the drastic readjustments following in the wake of Germany's near collapse. It coincided with extreme softness in South Amer- ts partial moratorium, as Argentina wavered in her determination to repay in gold the $50,000.000 credit due Oc- tober 1 and doubts were cast on the immediate outiook for service on the debts of Uruguay, Colombia and Brazil. Rail Bond Decline. By far the mcst serious and signifi- cant development of the month was the rapid melting of market values of do- mestic railroad securities. About $900.- 000,000 was written off the valwes of carrier mortgages in August and the market value of all rail bonds listed on the New York Stock Exchange shrahk to a point nearly $2.000,000,000 below the $10,767,045,569 value reached early in 1928. The liquidation which & month ago wa$ heaviest in the highly speculative carrier bonds, such as St. Paul adjust- ments, Missouri-Pacific general 4s, In- ternational Great Northern adjustments and the like, broadened near the month end to include the better second-grade issues, like Erie 5s, Baltimore & Ohio 4155 of 1960, Southern Pacific 412s of | 1981 and the recently offered New York | Central 41,8 and Pennsylvania 4lss. Then the selling generated nervousness among holders of high-grade railroad had a situation unique since the start of the bear mar- ket in 1929. Railroad bonds, long re- garded as the safest of investments. such_as " Atchison general 4s, Great Northern 7s, Northern Pacific 4s and Chicago, Burlington & Quincy 4s, were depressed 2 to 7 points from their highs. And this was at a time when public utility issues of comparable quality were still reaching new tops. ‘The heaviest liquidation of railroad sécurities came just after the clesing of four important banks in Toledo, and at that time the selling was attributable | to nervousness among other banks and selling by investors needing cash as The down- carrier earnings, and the operating in- come of all class 1 roads for the first half of 1931 was revealed as 37 per cent under that of the first half of 1930. One group of roads, for the year ending July 31, 1931, showed fixed charges earned an average of 1.70 times, against 3.20 times in 1930, which was itself a poor railroad year. It was only neces- ry to set this against the pet income sary | of 25 utilities that showed earnings of 3.60 times fixed charges for the same riod, against 3.62 the year before, to Bain some understanding of what the market was discounting. Rate Increase Demanded. Some were counting on a quick and favorable decision from the Interstate Commerce Commission on the carriers’ application for a 15 per cent horizontal foreign rate increase. But as the hear- ings before the commission went on it became more_evident_that_the_result needs during the next two or three months, Silver—For those who have not al- ready covered remaining 1931 needs, we advise such a policy at present. Steel—-In the absence of indications of price stability in most steel classi- fications, we see no reason for exten- sive forward buying at this time. Steel—scrap—In. view of the weak statistical position, we advise that only immediate requirements be filled. Sugar—We advise consumers to keep comfortably covered on requirements over the next few months. Tin—Days of price weakness should be utilized to cover remaining 1931 re- quirements. Turpentine—We advise the gradual accumulation of requirements up to the next season on 1-cent breaks, . Wheat—Lack_ of speculative support will tend to prevent a sharp recovery in prices until the termination of the heavy marketing ceason. However, consumers are now advised to gradu- ally accumulate forward requirements on 2-cent breaks. ‘Wool—Only near-term requirements should be covered at this time. Zinc—With a gradual improvement’ ;a statictical postltlon mfllelt?‘d.mi ve coverage of req the first quarter of 1932 i§ justified. would be & eom at no time approaching | the outlook and suggested purchasing ' heavy volume, but drastic in effect be- rolicies for important commodities, as | cause of the lack of demand for any- Cause. doubted the efficacy of an increase as a measure to restore the roads to a paying basis. The confidence of execu- | tives of other forms of transportation that business would be driven their way was not calculated to help the market for railroad securities. Another factor entering into-the sit- uation was the absence of any proposal to suspend for a time the rigidity of the regulations governing the qualifica- tions of rail bonds for inclusion on the New York State list of investments legal for savings banks and trust funds. A bond like the Atchison general 4 per cent is included in the portfolio of near- ly every savings bank in the country, and enjoys therefore a firmer market. That particular bond is not in question just now because the Atchison will cer- tainly earn more than the required one | and ‘one-half times fixed charges this year. But many other issues of class 1 Toads are in the doubtful list. including | obligations of the Baltimore & Ohio, |New York Central, Pennsylvania and Boston & Maine. ‘The immediate result of all this was a market almost devoid of bids for rail- road bonds. At the same time there | was a steady tone in industrial issues | | and, of course, with the demand for further | jean bonds as Chile declared complete prime investments heavier than ever, there was volume buying in prime utili- ties, municipals, short.term paper of \l readily cashable nature and long- term United States Government bonds. All of this latter group advanced | slightly. The Treasury disposed of blocks of 90-day bills at prices ranging from an annual yield basis of .49 to .63 | per cent, which reflected a record de- mand for these short-term securities. Detroit Issue. The discriminating nature of the in- | vestment demand, however, was ap- | parent in the comparatively low price ' | received by the City of Detroit for $30,- 1000,000 of its bonds. Detroit's obliga- | tions have ruled high in past years, but | the city has recently been burdened by | & large floating loan structure, and in- vestors have adjusted their appraisal of | its obligations accordingly. Railroad | bonds were almost impossible to put out and the Soo Line had to offer a 5-per cent-yield basis on‘$10,000,000 of one- year notes, even though the issue is backed by deposit of $12,500,000 of 5's | per cent mortgage bonds on which the interest is guaranteed by the Canadian | Pacific Railway. Ca | 'Total new bonds issued during the b | month amounted to only $108,895,000, | against $268,755.000 in July and $332. | 796,033 in August, 1930. Over $90,000, | 000" of August's total consisted of mu- nicipals. It was the smallest total for | any ‘month this year, and was signifi- [cant of the current market in that were issued. | For the first eight months of 1931 to date bond offerings have amounted 0 $3.120.196,760, compared with $4.- 684,084,914 in the same period of 1930. | Domestic Bonds. So far as domestic bonds are con- cerned, it is evident that considerable | readjustment of the economic scene is | necessary before any broad improve- ment may be realized. Quite a few railroad. bonds are selling at levels that cast considerable doubt on in- terest payments. Receiverships or con- solidations of a few of the small roads are inevitable, in Wall Street's opinion, d until these situations are cleared away, a decision on the freight rate increase is given, and there is some check in the decline of rail earnings, little change in the situation is iooked for. Wall Street does not doubt, how- ever, that the railroads— with more | efficient management today than ever | before—will adjust themselves to new | conditions and demonstrate the vitality of an industry in which the American people ‘ have an investment of over $21,000,000,000. (Copyright, 19313 CHICAGO DAIRY MARKET. CHICAGO, August 31 (#).—Butter, | (93 score), 27%a281}; extras (92 score), 27%; extra firsts (90-91 score), 251.a 26; firsts (88-89 score), 231582475; sec- onds (86-87 score), 21a22},; Standards (90 score, centralized carlots), 26: Eggs, 15,797 crates, firm; extra firsts, 21; fresh graded firsts, 19a20; current Teceipts, 15a18. . P N METAL MARKET. quiet; electrolytic, spot and future, 71 273, 1 .22, Zinc steady; timony, 6.60. Quicksilver, 83.00a86.00. —_ POTATO MARKET. CHICAGO, August 31 (#) (United | States Department of Agriculture).— Potatoes, 102 cars; on track, 297 cars; total United States shipments Saturday, 508 cars; Sunday, 23 cars; steady to firm on most stock; t Just fair; sacked per cwt, Wi , Cobblers, 1.10a1.20; ordi , 1.00a1.05: ‘Triumphs, 1.10a1.25, few higher; Minne- Cobblers, 1 sota .00a1.15; sand Ohios, 1.00a1.10; I¢ Russets, 1.75a fancy, 1.90; 1 Triumphs, 12521.35. i New Treasui-y Offering Gives only bonds of unquestioned high merit | SO Lai 19,943 tubs, steady: creamery specials NEW YORK, August 31' (#).—Copper | 3% X! toms recei 206 were $35,1 penditures IHIGH-GRADE BOND | GROUP IS HIGHER Impetus to Market—Cor- . poration Issues Firmer. BY F. H. RICHARDSON. BSpecial Dispatch to The Star. NEW YORK, August 31.—The an- nouncement by the United States Treasury today of an offering of $800,- 000,000 in 24-year 3s provided an un- expected stimulant to high-grade bonds. United States Government long-term issues advanced from 5-32 to 9-32, bringing their yields to slightly above 3 | per cent. Prime corporation issues were | firmer. The only other effect, however, was in the money market, where 90- day time money was quoted firm at 11 | per cent, with some reduction in the supply. 'Bond trading was in small volume, The second-grade domestic list con- tinued to fluctuate erratically. Profit- taking in the junior rails ¢ontinued, but there was also some buying, and a few issues scored gains. The fact that a arge oversubscription is expécted for the new Government financing was of no aid to the general list and, since stocks took a reactionary view of de- velopments in the money market, some | soft spots appeared. In the rails there were small declines in Chesapeake Corporation 5s, Chicago & Eastern Illinols 5s, ‘Erie General Lien 4s. Kansas City Southern 3s, Nickel Plate 4l2s, Pennsylvania 615s, and Alleghany 5s, of 1949. On the other hand gains occurred in Alleghany 5s of 1944 and 1950, Baltimore & OQhio 4155 of 1960, Chicago Great Western 4s, Chicago & Northwestern 4%s, Dela- ware & Hudson Refunding 4s, Erle A 4s and 5s of 1967 and 1975. Missouri Pacific 55 and General 4s, Nickel Plate | 6s. Frisco Prior Lien A 4s and 4!2s and Western Maryland 5!5s. International Telephone 5s dropped a : point. International Match 5s were fractionally higher. Kreuger & Toll 5s eased. Other international issues also reflected the irregularity in foreign dol- lar bonds. Industrials moved uncer- tainly. Armour of Delaware 515s sagged a point. Pure Oil 5125 of 1937 declined 8 point and_ then recovered. Dodge Bros. 6s, and Youngstown Sheet & Tube A 5s were firm. The chief interest in the foreign de- partment was centered in Brazilian bonds. Declines of 4 to 7 points fol- lowed announcement that the Brazilian government would suspend sinking fund payments on all external loans with the exception of two refunding issues and the coffee loan of 1922. Brazil 6155 and 88 were off 5 points. The bonds of the Brazilian states dropped a point or more. Sao Paulo coffee loan 7s of 1940 were weak. although not affected by the present announcement. Colombian issues were strong. on the announcement of the Colombian presi- dent’s intention to visit New York to arrange finances. Other South Amer- | leans were inactive. German bonds were higher at one time. reacted, and then recovered again. British issues were firm. The municipal market was strong. Talk of income tax increases in New York and other States and the predic- tion of some observers that PFederal taxes would be increased has increased the demand for tax-exempt securities. Washinfitcfi Stbék E);change SALES. Cap. Tract. 5s—$1.000 at 83%;. Wash. Gas 6s A—$1,000 at 103'. ;Cl’n Traction Co—10 at 35!z, 10 at 51 5. Pot. Elec. 5+ % pfd—10 at 1103, 5 at 110z, AFTER CALL. Wash. R. & E. 45—81.000 at 04. Wash. Gas 41,581,000 at 10015, Lanston Monotype—5 at 86'5. Bid and Asked Prices. BONDS. FUBLIC UTILITY. Asked. Rwy. & Elec. 4s... ... MISCELLANEOUS. Barber & Ross. Inc. e Chevy Chase Ciub 5! Columbia Country D. C. Paper Mfs W. M. Cold Storas STOCKS. PUBLIC UTILITY. & Tel action Co, C Wash. Rwy. & El. pfd NATIONAL BANK. relal (stamped) (10). Fed.-Amer Natl. B & Tr. (2). 46 Liberty (75).. 190 ncoln (12). etropolitan’ (i4) Riges (155) ... Second (9e) - Washington (13)..." TRUST COMPANY, Amer. Sec. & Tr. Co. (15). Continental Trust (6). Natl. Sav. & Trust (i3t} Prince Georges Bk & Tr. (6 Union Trust (8s)....... Wash. Loan & Frist (i4) SAVINGS BANK. Bank of Bethesda (68)... gom. & savings (10) East Washingtor Botomac (104 Sec. Sav. & Ce Seventh Street (12) United States (30) Wash. Mechanics (20) FIRE INSUFANC! (12). 101 American TITLE INSURANCE. Columbia (6h). Real Estate (6h MISCELLANEOUS. Barber & Rosg Inc. com . Medical Bldg. Corp. Gol Sand & Gravel pfd. (1 . C. Paper. fa st. Natl. 7] er. Bromo-8elz. A Federal Storage pfd. Fed.-Am. Co. com. ( Real Est. M. Security ‘Storal Ter. Ref. & Wh. Cory The Carpel Corp. (2| ward & Lothrop pfd. o md'um Wash, Med. Woodward & Lothrop com. Wood ro 5% extra. CHECK TOTAL DECLINES. By the Associated Press. : Checks cashed on individual bank accounts in 266 leading cities of the Federal Reserve system aggregated .13 per cent less during the week ended August 26 than during the previous period. ‘The totals, for comparable weeks, follows, based on reports to the Reserve Board * Week ended August 26, $7.541,000,- 000; previous week, $8,691,270,000; same week last year, $9,783,737,000. U. 8. TREASURY BALANCE. ‘The United States Treasury balance announced today as of close of business August 28, was $144,183911.12. Cus- for the th [ wox BOND Received by’ Private Wire UNITED STATES, (Bales are in $1,000,) Sales. High. “Low. Close. Lib3%s32-47.. 6 102 7 102 7 102 7 102 30 102 28 10227 th4l,s33.38 42 104 25 104 25 101 7 10111 10228 10222 10215 102 22 5 107 31 10731 112 12 11212 11212 Sales. High. Low. Close. Abitibi P&P 68’63, 6 b4' B3 bdv Adams Exp 48°48.. 26 843 Alleghany Cp 55 '44 Allegheny b8 '49. .. Allegheny 55 '5! Am Chain 68'33 AmF P 30 AmIGChb%s Am Intl 5%s "4 Am Metal 5%s Am Sug Ref 65 '3 AmTiTev4% AmT&T 588 1'60.. 3 Y —rwulnee~S8xeRonuaaie 5 tine 51862, Argentine May '61. Argentine 6s Ju'59. Argéntine 65 A '57. Argentine 68 B '58. Arm & Co 4%s839.. Arm Del 5% "43... Assoc OI1 6535 . .. Atchison gn 48 '95. Atchisev 4%8'48.., Atch Ariz 47386 AUCLI1st4s’s2 Atl Ref db58°37. .. Australia 4%8°56.. Australia 58 o Australia 5s‘87.... Austria 7843 Austria e 11215 112% 103 103% 96U 967 102 53% 534 611 614 6115 o Y 60% 06 106 76% 6% L Bk Chile 63561 Batav Pet 438 Belgium 65 '55. 1135 113% 961 97 518 515 103' 103% 10415 1043 Bolivia 8347 18% 184 Bordeaux 6s°34.. .. % 105% 105% Bost & Me 4% 861, 867 87 Bos & Me 55 Bos &Me 55 '6 Brazil 6148 '26. Brazil 6338 °27. Brasil 7 Brazil 8541, Bk Ed gn A 5549 Bklyn Elev 6 Bkiyn Man 65 6 Bklyn Un 1st 58'50. Budapest 6862.... Buenos A 6s'61 Pv. Buft Gen El 418’81 Bush Ter con 55 '55 Bush T Bldg 58" Canada 45 60 Canada 4335 " Canada 5% 52 Can Nat Ry 4 Beth St rf - 1077 1077 51 51 100 100 105% 105% 53% 53% 39, 391 1061 106% 85 85 7 97 95% 951 102% 1023, 106 106 100% 100% 100 100% 997 997 1015 1018, 10412 10445 104'2 104y 10515 105t 102 102 119 119 113 1134 81% 818, 9T 974 961 96'x 1021, 10215 10810 108% Can Nat 58 July Can Nat &s Can Nat58°70..... Can Nor 413835, .. Cen Nor 6725 db *46 Can Nor 7sdb'40. . Can Pac db 4s .o Can Pacific 4138 '46 Can Pac 4335 '60. Can Pac 55 ctfs'44. Car Clin & O 68 Cent |11 G&E 58 C&O4%sB'95 CB & Qgen 4s'58. Chi & Est 111 58'51. . Chi Grt West 45’ Chi M & St P @ Chi R Chi R1cv 4155760, Chi RT& P 4lzs'52 C TH&SE 1n 5860, Chi Un St 58 '44 C & W Ind cn 48'5: C& W Ind 5%s'6: Chile 63°60...... Chile 6361.... Chile 6s* Chile 78 Chile Cop db 58 '47 Christiana 6s CCCRStL 418 E' Clev Term 4138 Clev Term 533872, Colomb 63 Jan '61.. Colomb 6s'61 Oct Colon Ol 6s '38 Col G&E 58 May'52. 5 Col G&E cou 55 '61. Com Inves 514849, Con G NY 4%8°51, ConG N Y 5%s'45 Con Pwr Jap 6%s.., Con Pow Japan Copenhag 4138 '53.. o wa S adarofilonlan~a 3 87 76 6l 100% 100 921y 921y 10213 102, o Roass Y 961 961, 103% 1038 10712 1074 9Ny 96 Cuba Nor 5% '42.. Del Pwr&L 4%8 71. Del & Hud rf 45 '34. Del & Hud 5138 '3 Denmark 4138 '62 Denmark 5148 '55 Denmark 68 '42 D&RG W b8 Det E G&R4128'61. Det Edison rf 55'49. Dodge Br cl 65 '40. . Duquesne 4 Dutch East Dutch East 168’6 East C Sug 714837 El Saivador 85 '48. . Erie 15t con 4 Krie con 45 A ‘53, Frie conv 45 B. o gen 4s. .. Erie cv 58 °67. 005 100% 100% 92 921y 102 102 95% 95% 100% 100% 1051 106'% 47 48 1041 1043 107% 1073, 92 92 1048 1043, 101% 101% 2 101 101% 15% 15% 807 874 6674 87% 72 6% 17 10214 102% 118% 118% 125 126W 61 61 oy aro SR ARaRE NN Fla E Coast Fram D7 awen 58w German Bk Ger Cen Bk Ger Cen Bk 6s German Bank 7s'50 5 German 7srep’49.. 6 Goodrich cv 68 '45.. 21 Good 15t 6155'47... 9 Goodyr Rub 58'57.. 12 GrandTr sf db 65'36 1 Grt Nor 4% E. 1 Grt Nor5s8'73..... 3 Grt Nor gn5%s8'52 6 Grt Nor gn 78 '36.. 20 Greek 6s'63 2 Hav El Ry 5%8'51. 1 Hoe & Co 6%25'34... 6 Hud & M adj 58 '57. 14 - Hud & Mt 58'57.. 18 Humble Oil 55'37.. 17 Humble 0 5%s8'32. -9 Hungary T%s 111 Bell Tell Il Cent 4% 111 Cent 6% 5 '36 11 CCStL&N 4% 903 90% & 107% 107% 86 86 86 90 . 90 99% 9% 106% 106% 84 84 10% 10% 58~ 53 0% Tin 964 96l 108% 108% 102% 102% 80 . 80 -107% 107% 1 1 60 61 103% 103% | M 99% 99% Int Rap Tr 6s '3 Int Cement 58’48 . Int & Gr Nor 65'52, Int Hydro El 68 "44. Int M Co 53 ret'sl.. Int Match 68 47... Int Pap 55 A *47 Int Pap 65 °55. Japanese 5% '65. Japanese 6%s ‘G4. Jugosl Bk 78 '57. . Kan CF(S&M 45'36. 5% Kreug & Toll 58'59. Laclede 515 C'53 Laclede 5135 T Lautaro Nit 6554, Leh Val cv 45 2003, Lig & Myers T8'44.. Loew’s 65 ex w "41.. Long sl rf 45°49. . Long 1sl db 55 '3 Lou G & F 5552, L & N uni 4840, L&N 4782003, L & N 55 B 2003. Lyons 63 '34.. cKes & R 5% 50, Manh Ry 1st 45'90 Marseille 65 '34. . Mex 45 asstd 1910 Midvrle Stl 5536 Milan 63355 MK & T adj bs'67. MEK&T pr In 58A'62 Mo Pac gn 4575 Mo Pac 5s A '65. Mo Pac 58 F " Mo Pac 5155 A ‘49, Mobile-Ohio 4= '38. Mont Pow 6843 Mont Pdb 55 A Montevideo 78 Mor&Co 1st 4% 539 Nat Dairy 5 Ni NYCgn3y NY Cprfdsg 9 1 4 31 20 27 10 IS amornfenBS s cannlrane ~SxadnaaiZe Nor Pac 58 D 2 Nor Pacr16s 2047, Nor Am Ed 68 '57. . Nor St Pw 6s B'41. Norway 55 ' Norway 638 '65 Norway 68 '43. Norway 65 '44. Norway 6s 5. Oreg-Wash 4561, , Orient dev Orient dev Pac G&E 55’42 Pac T&T rf 58'52.., Pan-Am Pet 65’34, Paramount 65 '47. . Paris-Ly M 6s '58. . Paris-Ly M 7s'58. Penn 4% s D '81. Penn gn 41356 Penn 4135°70 Penn 635536, Penn P&T, 4155 Penn O&D 4158 '77. Peoples’ Gas os. Pere Mar 4% '80. Peru 6s '60 Peru 6561 Peru 78’59 Phila Co 53 °67 Phila Eiec 4s°7 Phillip Pet 5% s ° Pilish F M 6s'43 PCC&StL 434877, Poland 7s * Poland 85 '50 5 Port Gn El 41;5'60. ‘42, Public Serv 4s Pub Sv G 4358767, Pub Sv G 4%s'70.. Pure Oil 53%s Read gn 4145 A '97 Reading 4158 B'97. Rem Arms 6s A '37. Rhinelbe 7s '46 Rnine West 65 Rhine West 6s Rich Ofl Cal 65 *44. Rio de Jan 614 53, Rio de Jan 8s46. .. R Gr Do Sul 65 '68., R Gr Dp Sul 85 '46. Rio Gr W 1st 4539 Rome 648 '52...... Roy D4s"45 ww... StL IM R&G 45'33. St L&SF in 4s StL&SF4%s'78. StL&SF p15s B '50 StLS Wev4s'32. StLS W 5s°52.. StP&KCSL4%s. Sao Pau 7'40 ret. . Sao Padlo 85 '36. Sao Paulo 88750. .. Saxon P W 6135'51. Saxon 7s '45. . Seab A L cv 63 "45. EeaAll Fla 6s.A '35 Seine 78 *42....... Serbs-Cr-Sl 75°62... Serbs. 1 85 '6: Shell Un Ol 58 '47. Shell'Un Ol 5549, Skelly Oil 5% 5 '3 Sinclair Oil 6% s'38 Sinc 0 78 cv A *37.. Sine CrO5%s°35.. Sinc P L 5x'42. . Sou Bell T&T &8 ‘41 SW Bell T 5s A Sou Pac ref 4 Sou Prc 415 '68. Sou Pac 4%s'81. .. Sou P&OT 4 %s 77, Sou Ry &n 4s'56. .. Sou Ry 55’94 . Sou Ry 6x ‘56 Sou Ry 6%s'56. ... Sou Ry M&O 45 '38. StOfl N J 5846 3tOil N Y 4%8 5 Sweden 5% 8 ‘54, Swiss3%s'46..... Taiwan EP5%s71 Tenn EI P 6s A '47. Texas Corp 5s"44.. Third Av rf 45'60. . Third Av adj 5’60, Toho El Pw 78 '55.. Tokio 5% '61. Tokio El Lt 8 . Un Pacrf 45 2003.. UnPac4%s'67.... Unit Drg cv bi Utd King 5% U S Rub 1st 58'47.. Un St W 8143 A'47. Ud'St WE%sA'51.. Ud St W 5%sC’51., Uruguay 88 '64 Util Pow §3%4 47 Vanadium Vienna ¢s '50 3 = a 0 aEGepannanannn manianS- g -1 20 maaee SIS annomadlanieb veanarabannas o ® ES Soan 1 73 811 T5% 67% 4815 685 844 75 102% 100 97 105 1023, 40 69 69 101% 1013 FINANCIAL. NDS o] [RADRS PEASED AT FALL PROSPEL Past Week Based on Business Gains. BY CHARLES W. STORM. Bditor the News Service of Wall Street. Special Dispatch to The Star. NEW YORK. August 31.—Develop- ments during the last week have been of much encouragement to the financial district, and this better feeling began to find reflection in a stronger stock market on Friday. The fact that the gains made that day were maintained and in most instances enlarged on Sat- urday led to the belief that the new upward movement represents something more than a technical rally based on short covering by professional traders. A continuation of the upward move- ment would be considered significant and would encourage the belief that real banking support has been respon- sible for the recent stability of stock prices. Constructive Developments. Evidence of progress in the direction of “stabilization of the fnancial and business situaticns is coming to hand in 2 more impressive manner. The prompt and decisive action taxen with regard to relieving the British financial situ- ation is a source of much encouragement The street is of the opinion that the granting of $400,000,000 of one-year credits by American and French bank- ers will result in improvement in the British financial situation dnd thereby remove that as a depressing influence on the stock market. With the German and English finan- cial necessities provided for, the news from Europe in the future is expected to be of a more favorable nature, Business Improvement. While unfavorable conditions prevail in general industry and trade through- out the country, the fact that expansion has started in the New England States leads to the hope that it will extend to other parts of the Nation. Just as little or no attention was paid to the be- ginning of the business depression in 1929, so very little cognizance is now ;fl:fi taken of the betterment in New nd, and, in fact, most 1 belittling it. i The crystalization of the unfavorable financial conditiors in Germany and | Great Britain came at an inopportune time from the viewpoint of those who have assumed a constructive position in |the stoct market. These =European troubles have delayed business impro; ment in this country so that seasonal betterment is not expected to develop as early as usual. Hopes are running high, howeter, owing to the favorable indications re- ceived from the New £ngland States. The Alexander Hamilton Institute is authority for the statement that 14 in- dustries have emerged from the bottom 4| of the depression and. in spite of a general lowering of wage rates, are pouring increasingly larger wage totals into the pockets of workers, Ald for Bonds. Another source of encouragement to the financial district is the steps being taken by the leading investment bank- ing houses to improve the market for sccond-grade bonds. The steady de- cline in prices of these bonds has been > | one depressing influence on the stock market. It is known that prominent investment bankers have been seriously | discusging ways and means for taking those second-grade railroad bonds off th= hands of out-of-town bankers and redistributing them to investors where they will stay put. The removal of these bonds from the portfolios of the banking institutions would be of substantial benefit to the banks and would at the same time re- move a condition which has been a sore spot in the nation’s banks. Discussions with regard to helping the market for second grade railroad bonds have reached the point where it is expected that a syndicate will be organized to purchase large blocks of these bonds from time to tim.e The investment bankers will then inaugu- rate selling campaigns throughout the country with a view to placing the securities with investors. Improvement the Jattér part of the week in the prices of these bonds un- doubtedly grew out of a demand stimu- lated by the knowledge of what is go- ing on in investment banking circles. Further improvement in the prices of second grade railroad bonds undoubt- edly would serve to revive confidence in the transportation stocks. The latter, however, continue to labor under the influence of possible reductions in a number of dividends. It is because of this apprehension that the dividend meetings of a number of the big rail- roads will be anxiously awaited. ‘The continued poor shcwing of earn- ings and the improbability that the railroads - will receive any relief from the Interstate Commerce Commission until the late Fall would seem to indi- cate that the boards of directors of the railroads will have to use earnings as the sole yardstick with which to meas- ure out dividends to shareholders. Betterment in Oils. There is no doubt in the financial district that conditions have been im- proving in the oil industry as a result of the shutting down of flush produc- tion in East Texas and Oklahoma. Oil stocks showed some increased activity and strength by reason of the general idvance in prices of crude and gaso- line, but the upward movement in the oil group was slowed down by the ina- bility. of the general stock market to get anywhere during the early part of the week. A resumption of the advance in the oils, however, is expected to be wit- nessed when the Texas Railroad Com- mission and the State of Oklahoma an- nounce the allowable production fig- ures. ‘These figures are expected to be bullish on the industry and are ex- pected to furnish the signal for the revival of activity and strength in oil stocks. (Copyright. 1831. by the North American Newspaper Alliance, Inc.) Furnaces to Be Reopened. NEW YORK. August 31 (P).—Six more melting furnaces at the Bracken- ridge, Pa., plant of the Allegheny Steel Co. are to be placed in operation this week. Only two have been in operation for the past several months. PARIS BOURSE PRICES. PARIS, August 31 (#).—Three 4 cent rentes, 89 francs 25 centimes. Five per cent loan, 105 francs. Exchange on London, 123 francs 97 centimes. The dollar was quoted at 25 francs % centimes. Sales. High. 5 104 Low. 104 4315 Va Ry 1st 58'62... Wabash 4%s 7 Wabash Laed Wabash 58 D80 Wabash 518 '75 Walworth 6s Warn Br Ple Warn Quin West Md4s'52.... 4 West Md 6%5°77.. 16 w 7 West Union 55'60. 14 Wes: Un 6145°36. . Wil-O I8t 63 Wis Yokohama 6 7] Est 5sA'TE. 15 97 Ygstn B&T 5s B'70. 26 96