Evening Star Newspaper, September 6, 1931, Page 33

Part 6—12 Pages FINANCIAL AND CLASSIFIED he Sunday Star WASHINGTON, D. C, SUNDAY MORNING, SEPTEMBER 6, 1931. Classified Ads Pages 5 to 12 TRUSTFIRV HOVES INTO NEW OFFIES ASBUSIESS ANS New Ten-Story Addition of5 American Security Is Hand- some Building. VARIOUS DEPARTMENTS Occupancy of New Quarters Marks Fourth Movement for Ex- pansion of Firm. BY EDWARD C. STONE. ‘Transfer of all departments of the American Security & Trust Co. from the main office, at Fifteenth street and Pennsylvania avenue northwest, into the bank’s new 10-story addition was completed yesterday, according to an- nouncement by the president, Corcoran Thom. and the bank .will open for business Tuesday in the handsome new guarters in the American Security Building. The old banking house, which for the past 26 years has served as the com- pany’s main office, is being remodeled and upon completion of the alterations will be connected and used jointly with the present addition as the main office. The company in its regular banking and trust business will occupy the first, second, third and a portion of the fourth and the tenth floors, as well as the basements, while the remaining floors of the 10-story structure have been designated as rentable area. Quarters Greatly Expanded. These new and enlarged quarters were designed and arranged to meet the requirements of the various depart- ments. Moder: equipment has been in- stalled throughout the bank, so that the work of each department and the transacting of interdepartmental busi- ness will be facilitated. The safe deposit department. located on_the downstairs floor of the new buflding. is one of the largest and most modernly equipped in the city. Its huge vaults represent the latest developments in protection of this kind, and its large number of conveniently arranged cou- pon rooms assures complete comfort and privacy to customers. On the first floor is located the banking department. which includes the paying, receiving and note tellers. These departments, however, at the time of completion of the work cn the old build- ing will be relocatd in the first floor 1coms of the united buildings. The se- curities and foreign exchange depart- ments have also baen established cn this ficor. Fine Trust Accommodations. ‘The entire second floor has been given ove to the trust department, The ar- Tanz:ments. equipment and furnish- ings meke this department one cf the most attractive in the building. Several operating departments of the company are located on the third floor. | Among these are the bcokkeeping. per- | s°nnel, purchasing, credit and the de- Tartment of public relations. The au- diting department has been established on the fourth floor. The directors’ room. staff dining yooms and kitchens occupy the entire tenth ficor of the building. From this | point can be had an excellent view of the city's skyline and the Potomac. Bank Organized in 1889. The occupancy of new quarters in the building marks the fourth distinct movement by the trust company toward expansion. Orgnized in 1889, the com- pany was tempcrarily located at 1419 G street northwest, until 1891, when it was removed to 1405 G street. In 1905 the company was transferred to the handsome new bank building at Fif- teenth street and Pennsylvania avenue. where it remained until the present transfer. ‘Through a merger with the Home Bavings Bank in 1919 the trust com- pany. acquired additional hanking offi- oces. It now has five offices, located in the varlous sections of the city. It has capital and surplus funds totaling $6.- 800,000, and its resources, according to the latest published statement, smounted to $41,501,650.38. Heard in Financial District. Eliot H. Thomson of the Washington Yoan & Trust Co. started on his annual vacation yesterday. While away he will attend the annual convention of the Financial Advertisers' Assoclation in Boston. Bank clearings in Washington for the week just ended totaled $20,382,000, against $17,077.000 a week ago, ap in- crease of 1.0 per cent Tickers in the local broker offices were silent today and will be again on Monday, Labor day. The Washington Exchange and the banks will also be closed Monday. McCrory Stores Corporation today re- ported a decrease in sales in August of 5.7 per cent, but only 0.5 per cent for the. first eight months of 1931. Both Woolworth and Kresge also reported slight August declines. Washington _clearing _house for Saturday: $3.916,974.75. DECLINE IN ELECTRICITY PRODUCTION REPORTED By the Associated Press. Production of electricity by the elec- tric light and power indusiry of the United States amounted to 1.637.533,000 kilowatt hours during the weei ended August 29, a d~crease of 3 per cent from the correspond'ng w The National Electric Light ation, which made the calculation, re- ported the Atlantic seaboard r: an increase of 2.3 per cent in output above last year. while the cen- tral industrial region, bounded by Buf- falo, Pittsburgh, Cincinnati, St. Louls| and Milwa: showed as a whole, a decrease cf 6. a'though the Chicago district decreased but 3.3 per cent. The Pacific Coast declined 1.9 per cent. DIVIDEND CHANGES SMALL IN AUGUST Dividend changes in August were the smallest reported for any month of 1931, according to the Standard Sta- tistics Co. Increased dividends were! paid by 4 concerns, exiras by 22 and initial payments were made by 13. Reduced and passed dividencs totaled 112. Detailed figures covering the changes in the first eight months of 1930 and 1931 are given below. months. 1 | { figures 31. ¢ 674 | 68 | 38 416 152 1.441 863 863 Total favorable Increased . Bank’s Head HARRAS & EW INGw President of the Amn:-rici Trust Co. which yesterday moved into its handsome new addition. Mr. Thom is one of the city's leading bankers and has guided the trust company for sev- eral years. BANKING FACULTY NOW CONPLETED Local Students of Finance to Have Able Group of Instructors. Richard A. Norris, chairman of the Educational Committee of Washington Chapter, American Institute of Banking, yesterday announced the complete fac- ulty and courses for the coming school year, which starts on September 21. The members of the faculty and the courses they will conduct follow: Raymond B. Dickey, LL. B, LL. M. member District of Columbia Bar, in- structor in Law I and Law II, connected with Washington Charter as instructor since 1920: in 1922 was made an honor- ary member and is now one of the three honorary members of Washington Chapter. In 1924 he was made dean of the faculty and still continues in that office. Eliot H. Thomson, LL. D.. publicity manager, Washington Loan & Trust Co., Banking I. F. Joseph Donohue, AB, LL. B., for- mer instructor, Catholic University, member of the District of Columbia Bar, Economics and Banking I Bolitha J. Laws, LL. B, LL. M., for- mer United States attorney, District of Columbia, member of the New York and District of Columbia Bar, Law I and Law IL James Daniel Cushman. certified pub- lic accountant. and Willlam Gordon Buchanan, certified public accountant, instructors, ~Georgetown University, redits II. Cdames C. Dulin, LL. B, assistant treasurer, American Security & Trust Co.. member of the District of Columbia Bar, Investments. register of wills, member of the District of Columbia Bar, Trust Functions. ; Harold W. Burnside, A. B., assistant cashier, Riggs National Bank, Credits I. George Farnham. B. A.. B. O., B. D. former lecturer public speaking. George Washington University. Public Speaking. Frederick P. H. Siddons, A. B, LL. M., secretary, American Security & Trust Co., instructor National University, Banking IIL Elmer Louis Kayser, A. B, A. M, director, division of university and ex- tension students, George Washington University, English in Business. Students who enroll for the first time this year will complete Banking I, Law I, Law II, and Economics, in the pre- standard group: and Banking II, Credits I, Credits II, and Banking III, in the standard group. Students must receive the pre-standard certificate before re- ceiving credit on any standard course subject toward a standard certificate. EXPORTS OF FRUITS SHOW BIG INCREASE Active Sales Efforts, With Short Crops in Europe, Result in Larger Shipments. By the Associated Press. Expcrts of United States fruits showed a substantial increase during the last fiscal year. Short apple and pear crops in Europe, coupled with continued and active sales efforts, were the chief factors in bring- ing about the gain. Official statistics of the Commerce Department indicated shipments of fresh fruit durirg the period were valued at $66,529,000, as compared with $50.468.000 the previous year. Dried fruits totaled $29,661,000, as compared with $28,622,000 in the previous period. Active sales promotion and close at- | tention to efficient packing methods on the part of American shippers and their agents were cited by the depart- ment as having played an important part in increasing the foreign sales despite depression. In European markets during the last year short apple and pear crops in the Netherlands, Germany, France and Belgium were largely responsible for the increase. Trade cbserevrs pointed out. however, that had not able and active American trade promoters been on the scene purchases from the United States to make up the shortage might not have been nearly so large. American fruit is sold almost exclu- sively on a quality basis, the prices of European competitors in most cases being lower. An essential part of the American success has been the highly developed grading and packing of the exporters, which guarantees delivery abroad of fine-quality fruit in first-class conditicn. SHOE CENTERS FURNISH REAL INDUSTRIAL CHEER Special Dispatch to The Star. NEW YORK, September 5.—Accord- ing to the latest reports the shoe cent>rs of the country are among the few bright so0ts to be discerned in the present in- Gustrial picture. Factories are hum- ming everywhere at, or close to, ca- pacity. Manchester, N. H., reports the Dbest business in years and that the town has almost no unemployment problem. In fact, virtually the e thing is heard from all towns whgre shoe manu- facture is the principal pation STOCKS DEPRESSED BY CONTINUED DROP IN GARRIER SHARES Dividend Omissions, Railroad Receivership and Poor Earn- ings Affect Market. | THREAT OF TAX RAISE ALSO INFLUENCES.LIST Industry, With Costs Low, Ready to Respond to Buying Revival. Is BY CHARLES F. SPEARE. | 8pectal Dispatch to The star. NEW YORK. September 5—Having met. with surprising calmness the series of disturbing political and financial events abroad during August. Wall Street was upset this week by develop- ments in the domestic situation that were of small importance compared with those it had ignored. This fllus- trates’ the degree to which it watches for a lead in American conditions and is sensitive to changes at home. The omission of dividends on Lehigh Valley and J. I. Case stocks, receiver- ships for a-railroad and public utility holding company, the failure of trade | to expand or to give evidence that it would turn upward this month, and the threat of higher income taxes to cover the growing Governmen: deficit have again unsettied investors snd led to a new low average price for railroad shares and a shrinking of the margin | remaining over the June minimum for | industrials and public utilities, The action on the two dividends that were passed was somewhat abrupt shareholders in both properties had Teason to expect that they might be let down more gradually. The disposi- tion today is to go the limit in con- tracting contingent liabilities. So we find 60 per cent of the dividends on which favorable action has been taken in the past eight months to have bren entirely omitted. The market position of many bonds being what it is, corp- { oration managers are disposed to sur- | much protection as possible and to | make sure that they have ample funds to meet all interest and sinking fund | payments. Consequently, the stock- ! holder frequently suffers more than the | current position of the balance sheet land the income statement scem to | warrant. Dividend Decisions Ahead. Directly ahead are half a dozen im- portant raflroad and industrial divi- dend decisions which will play an * portant part in directing the mo ment of stocks. Railroad shares are | discounting_further reductions in the | declines that have brought many carrier issues to the lowest figures the end of Government control #nd one average price list to a level not equaled since 1898. 1In other words, the estimate of the market place today is that American railroad stocks &s & class are worth no more than they | were a few years after (he greatest| period of railroad bankruptcies that | this country has ever witnessed. Wit | all of the loss in traffic in the past | ars there have been only two | rships and these for properties that would have been able to weather the storm if their managemen's had | not lost their heads and exploid | southern territory already abundantly | supplied with transportation factitics With equally poor judgment, other railroad managements subsequently | sought to extend their jurisdictions | through the purchase, at absurd prices, | of stocks of other lines which have since | passed their dividends and have sul-| fered a tremendous depreciation, It might almost be sald that there has| | not been a successful promotion of new | railroad bullding on a large scale since before tne adventures of the Goulds with the Western Pacific and the Rockefellers in the St. Paul. And when it comes to the advantages arising from the so-called “strategic _ purchases” which were originated by E. H. Harri- man 25 vears ago, and more recently copied by the Pennsylvania and Van Sweringen interests, the records fail to disclose results over which a share- holder in any property might find gratification. Rate Ruling Awaited. Some sort of decision will probably be given in the freight rate case by the ! Interstate Commerce Commission next month. If the railroads receive half of what they ask for it will help their position sentimentally and give them a better credit standing. The rate in- crease will be slow to translate itself into larger net earnings. Therefore, we must expect to see a succession of de- creased and probably omitted railroad dividends in the next six months. There is a great difference. however, between a railroad that has been com- pelled to discontinue dividends and one with a margin of earnings sufficient to pay the interest on its bonds. Although fhere are a limited number of those that will qualify this vear as to legal- ity for their bonds, there are a com- pargtively small number unable to cover their full fixed charg-s for 1931.. One may se> the reasonableness of selling by trustees who have a liability for a depreciation in bonds stricken from the legal list. It is a somewhat stupid and misinformed private investor who will sell at current prices railroad bonds out- standing in an amount per mile about 25 per cent the present cost of re- placement and in the extremist condi- tions imaginable to maintain interest. Business Cuts Costs. ‘The contagion of economy which makes popular and even fashionable the wearing of old or moderate-priced ; clothes, the driving of cheap cars and the foregoing of expensive vacations, ! obviously delays the improvement in business so that in the industrial world September is as discouraging as August | | | round their direct obligations with as | { with ~ Argentina ARGENTINA 15 HELD DESERVING OF BANK SUPPORT I CRISIS Would Embarrass Republic in Difficult Situation. COMMERC_E HAS LAGGED AS INVESTMENTS GREW | But Nation Has Shown Inherent Honesty as Debtor to United States. BY DR. MAX WINKLER. Special Dispatch to The Star. NEW YORK, September 5.—Today, the Argentine Republic celebrates the first anniversary of the revolution, which took place on September 6, 1930, result- ing in the overthrow cf the Irigoyen regime and the establishment of a pro- visional government under Uriburu. The enthusiasm with which the change was received in the United States found expression in a loan to Argentina, extended by New York bank- ing houses to the extent cf $50.000.000 for one year, at 5 per cent, or on terms lower than those ever accorded the Ar- gentine Republic within 16 years. Not since 1914 has Argentina been able to borrow cn more satisfactory terms. Early that year, $15,000,000 was obtained in London on a 6.383 per cént basis. About three years later, the National City Co. of New York made its debut as a lender to Argentina, grant- ing the republic a sh-re-terms loan on & 6.185 per cent basis. In 1916, Hall- garten & Co. of New York, loaned money to the government on a 6.278 per cent basis. Other Loans Underwritten. In 1925, & Co. underwrote & short-term Argentine loan cn a 5.34 per | cent basis. This was followed by a loan arranged through the Morgan firm on a 5.333 per cent basis. For the period 1925-1928. J. P. Mor- gan & Co. were the bankers for Ar- gentina and 1-ans arranged on behalf of the government were at rates vary- |ing from 5.128 to 5788 per cent. In | April of last year, the Chatham & | Phenix arranged a $50.000,000 issue on 6.03 per cent basis, which was refunded | by the one-year 5 per cent issue referred to above, through the banking firm of Brown Brothers now 1dentified with the Harriman interests. It is this issue which has been caus- ing appreciable embarrassment. not only to Argentina, but to the bankers. The past year has been most trying to the southern republ Her economic and financial c°ndition has not im- ufficiently to enable her to re- pay, without serious inconvenience, the $50.000,000 lcan, To be sure, she still Possesses a large stock of gold, appar- ently the only means cf discharging her debt, and American bankers see no rea- son why the gold could not be shipped here in settlement, ignoring en! y the censequences of an economic nature re- sulting from a shipment of such pro- prrtions, At this time Argentina could but il afford to part with more gold. The po- sition of ‘the peso is not particularl; satisfactory, and, while still protected | | by a large reserve ratio, confidence is lacking, and the further export of the yellow ‘metal will merely tend to ag- gravate an already difficult situation. Is not this going to affect rather se- riously future American-Argentine com- mercial relations? Would it not be desirable if United States bankers, whose vaults are filled with gold to overflowing, could see their way clear to aid Argentina in her efforts to stage | a comeback, rather than impede her | rehabilitation> America’s stake in Ar- gentina and her trade with the country are certainly substantial enough to war rant bankers giving serlous considera- tion to the advisability of not pressing too hard a harassed but inherently honest debtor. American Investments. Prior to the war American invest- ments in Argentina aggregated only $40,000,000, while American-Argentine commerce totaled $96,860.000, of which 872,458,000 represented exports to and $24,402,000 imports from Argentina. In other words, America’s trade with her southern neighbor showed in 1913 a balance in favor of the United States aggregating more than $48.000,000. At the beginning of the current year American investments in Argentina were estimated at $871,169,000, larger than those in any of the South Amer- ican republics and exceeding America’s stake in the whole of Latin America, with the exception of Cuba. Against this 22-fold increase, as compared with the pre-war figure, America's trade in 1930 was only slightly in excess of double the 1913 figures, Last year the United States exports to Argentina amounted to about $130.000.000, while imports to- taled somewhat less than $72,000,000, resulting in a balance of trade in favor of the United States of about $58,000.000. Great Britain's investments in Argen- tina have, during the same period, in- creased from $1.860,700,000 to $2,140.- 104,000, a gain of slightly more than 15 per cent: while British-Argentine trade last year amounting to almost $400,000,000, shows relatively little change as compared with the pre-war total of $409.469,000. In 1930, the bal- ance of trade was in favor of Great Britain to the n;nounz of dmore t{’mln ,000,000, against an adverse bal- :}iseo(or the United States of about $58,000,000. Adequate Return Difficult. These figures might possibly indicate that Great Britain is a somewhat more logical place for Argentina to seek finan- clal accommodations than the United States. However, both American and British investments in the Argentine Republic appear to have grown faster than their commerce, and it is not en- tirely unreasonable to venture the sug- and the trade index is near the low of the year. There is another side to this situation, however, which has a more favorable aspect. Economy has ! also become the controlling passion | of every operating executive in the country until costs in practically all lines of business are so low that any increase in orders would quickly change the figures on earning sheets from red to black. During part of 1928 and during most of 1929 costs were so high that increases in gross earnings fre- quently produced only a slight acere- tlon in net. Whenever the situation' changes for the better the ratio of net gain to gross increase will be the h'ghest in years. Some of the unfavorable industrial developments of the week were the decline in the steel industry, where it is suggested by trade reviews that a wage reduction may be necessary; smaller output of automobiles in July and August than last year; a reduction in _commodity prices during August ..{(Continued on Second Page.) i i gestion that both the United States and Great Britain have reached a point where the additional placement of funds should be very carefully scrutinized, be- cause it is becoming increasingly diffi- cult for the southern republic to provide an adequate return to foreign capital. This should not in any way be in- terpreted as a warning against addi- tional placement of funds in Argentina. It does, however, mean that if further investments are to be made, they should be for strictly constructive pur- =, and that their proceeds should, within a reasonable period of time, be- come revenue producing. ight, 1931, by North American News- (CoprrEnt, o er Witince, Tnes Mo Vo il U. S. TREASURY BALANCE. ‘The United States Treasury balance, announced today as of close of business September 3, was $116,693,517.55. Cus- toms receipts for the month to date were $2,917,131.44. Total ordinary ex- penditures mlsu,an,'m,u. NOW WE CAN BUY HIM ANOTHER ONE. {Further Exports of Gold |’ ICE TRADE ENJOYS RECORD BUSINESS Sales Give Evidence of Pass- ing Previous High Mark Last Year. BY ALVIN RESCH. i Written for the Associated Press. ! CHICAGO, September 5.—The Na- tion's ice industry, the yearly turnover | of which approximates worth of manufactured and natural ice, | this year can boast of the best business in its history despite depression. Although no definite figures on its| 1931 business are available, sales are| expected to show an increase over last year, when a record total of more than 56,000.000 tons of manufactured ice was sold, to register an increase of 5.34 per cent over 1929 figures. | Unlike most industries, the ice busi- ness suffered a depression of its own long before the crash of 1929. By fight- ing its way out of an economic abyss five years ago, the industry long since recovered sufficiently, not only to set new marks for itself, but also to con-| tinue untroubled by current business woes, i Steady Increase. | While industrial depression has re- duced the ice business in the South and | in areas wholly dependent on the wel-| fare of a single crop or industry, favor- able weather and other circumstances this year have more than made up for that loss by creating record trade in the North and Far West. It might have been a different story for the ice industry if it had not given its own bootstraps a vigorous jerk in 1926. From 1919 to 1935, according to figures of the National Association of Ice Industries, ice sales increased con- sistently every year, with a record rise of 13.4 per cent in 1925. In 1926, however, there came a de- cidedly poor year for ice companies. Mechanical refrigeration had made its debut in a big way, and capital fled from ice. Yet ice manufacturers have done more business than ever in 1926. When mak- ers of mechanical refrigerators began their intensive campaign of public edu- cation, the ice industry followed, timidly at first, with a program of its own. Now members of the national asso- ciation, representing 1,800 ice com- panies, whose production totals 80 per cent of the Nation's total, are spending five times as much in telling the public about ice as they spent in 1925. The percentage of families using some sort of refrigeration has increased, and with it has come business both for me- chanical refrigerator concerns and ice companies. In 1930 the gross output of ice per capita was nearly 1,100 pounds, against 450 in 1912, Car Icing Grows. Now the ice Industry has an invest- ment exceeding $1,000,000,000, and Les- lie C. Smith, secretary of the national association, says: “We believe we still have room for a 50 per cent growth in the domestic field.” Increased sales in recent years have been due not only- to greater domestic consumption, Mr. Smith says, but also to growth in car icing sales. The quan- tity used for car icing has increased at an average rate of- 6 per cent & year for 12 years, he says, due to the vastly greater consumption of perish- able products. l USE OF MARTIAL LAW IN OIL FIELDS FAVORED By the Associated Press. Martial law in the oil flelds is gain- ing proponents. Hailed at first as a_questionable gov- ernmental means of maintaining a price level for the beenfit of private in- dustry, it is now generally recognized as a step necessary to conserve flagrant waste of a most important natural re- source. The drastic action was taken iIn Oklahoma and Texas, where the State governments, combating the problem of overproduction, cl the wells until crude oil returns to_a fair price, con- sidered $1 a barrel” It was believed here the action might be the forerunner to stabilization plans within the indus- try on a wider scale'than ever before ted. v ( $450,000,000 | g U. S. Trade Gain Later This Mont h “Sunshine Talk™ Is Being Replaced by Energy In Sales Efforts. BY BRADLEY W. TRENT. Special Dispatch to The Star. NEW YORK, September 5.—A norma! seasonal improvement in business, with a slight upturn coming rather late this | month, is the business men h general prediction of ere on the post-Labor skeptical about attaining the complete seasonal increase due at this time. the business landscape is the replace- ment of “sunshine talk” with “sales energy.” Light inventories of manufac- tured articles now in the hands of both the manufacturer and the ultimate con- sumer is another cheerful factor. Basic Industries Lag. ‘The public, which has long deferred buying, partly through fear, partly in an effort to obtain lower prices, but large- 1y because it had overbought two years ago, now appears to be purchasing critically, but somewhat more liberally. This movement naturally is reflected in the lighter consuming companies, such as merchandising firms, but the basic One of the most hopeful aspects of | construction, continue to lag. Banking is one of the brighter sides of the present business view. It is true that banks are insisting that credits be reduced commensurate needs, which are shaped both by lowered sales volume and reduced quo- tations. Commercial paper, however, is at lower levels than it has been at any time in the last decade, even for names other than prime. Time money, too, is cheap and abundant. The harvests, because of low prices rather than yield, will neither provide much in the way of farm purchasing power no go far to liquidate indebted- ness incurred this year at the planting season. but in many sections today conditions are much better than a year 2go, when drought wrought havoc over & large area. The steel trade's immediate future is somewhat clouded by the prospects of such seasonal buyers as the automotive and railroad industries. Producers of automobiles intend to continue at rather low rates of operation until the new models are placed on display early in November, which would mean that the steel trade cannot expect much in the way of automotive buying until mid- October. Railroads frankly assert they will buy no more steel and iron than is absolutely necessary, in view of their shrunken revenues. September, however, has been a no- table month in trade expension if one looks at the years 1924, 1926 and 1928, In industrial production September B:'oved & less busy month than August 1023, 1927 and 1929, but in all other ma urihg les was recorde in September. = (Copyright, 1931.) 1,400 TEXTILE DESIGNS BOOKED IN AUGUST By the Associated Press. NEW YORK, September 5.—More than 1,400 textile designs intendéd for use on Spring season fabrics were reg- istered during August with the Textile Design Registration Bureau, which has been organized by the textile industry to act as a clearing house for cotton, silk, linen, woolen and rayon designs for the purpose of eliminating duplica- tion of patterns between textile houses and as an aid in the campaign against design piracy. VIRGINIA BUILDING RICHMOND, Va., September 5 (#).— Total assets of the building and loan associations in Virginia ranked twenty- second among those reported by the 92 organizations of the United States Building and Loan League, based on 1930 figures. ‘With the total Virginia Association assets recorded at $60,439,644, an in- crease of $1,561,002 was noted over the previous' year. Total assets of the league associations increased $128,964,939 during the fiscal year ended December, 0, according to figures compiled from 11,777 associ- ations, v outlook. Many of them are frankly | with present | AUTO PRODUETION e by eers |G [N T B Extension of “Vacation Period” Causes Curtail- ment of OQutput. BY DAVID J. WILKIE. ‘Written for the Associated Press. DETROIT. September 5.—The up- ard curve September was expected bring to the automobile industry seems to have been somewhat flattened out by the fact the Ford Motor Co.’s “vacation period” curtailment has been extended about a week longer than it generally had been expected to last. When the Ford Co. curtailed opera- tions on August 1 resumption on the three-days-a-week schedule was ex- pected on September 1, although no definite statement to that effect was made by the company. Approximately 20,000 workers have been advised to report for work again September 8. Personnel Increased. ‘The return of these employes will bring the Ford personnel up to about 70,000 workers. as compared with some- thing more than 100,000 in normal times. Despite the curtailment, which { industries, such as steel, motors and | it has been pointed out is not a | “shutdown™ in the strictest sense of :ge K[\;g{d.nlh‘;LFt‘)rd :afly pay roll in | the ro! istrict has approximated $500,000. £ Considerable speculation continues | manifest in automotive circles as to | whether the ‘“shutdown” period has been utilized by the Ford Co. for a retooling of plants in preparation for an altered model A. The company has neither confirmed nor denfed that changes are to be made in the cur- rent model. Rumor has it, however, that the Ford car shortly will appear with longer wheel base, probably free- wheeling and other changes of less radical consequence. In the same price bracket, Chevrolet is expected to continue production through September. Whether the full pay roll of 33,000 men will be con- ‘inued will depend largely upon im- mediate development in retail demand. During August Chevrolet produced 54.- 958 cars and trucks, compared with ;:.:;22 in the corresponding month last Several other plants that closed down during July and August have resumed operations, but production activities are proceeding rather cautiously. Plym- outh, which with Chevrolet and Ford make up the larger part of the low- price production field, has been an ex- ception, but this generally has been at- tributed to the fact that it Tecently introduced a new model. With no new models for presentation at this time, Buick's production during August totaled 4,298 cars, compared with 20,004 during the like month a year ago. It is pointed out that a year ago the heavy production schedule reflected liberal sales of new models introduced at that time. Buick, with five:: n'}‘.:','fu’&, in ;he same price bracket, 4 g its new models later in the year. o Replacement Buying. ‘The Buick plant is planning to close down a few departments at a time during September for inventory. A “staggered” plan of suspension was decided upon in preference to a com- plete shut-down because of employment conditions. e much talked “delayed replacement buying” may amount to when it finally is re- leased is given in a statement by Alvan Macauley, president of the Packa: Motor Car Co., and head of the Nation- al Automobile Chamber of Commerce. In a statement in which he urged that “unemployed dollars” be “put to work” that they might become the “self- starter” for “better business and great- er prosperity,” he said: “Hundreds of thousands have run their old cars a year or two longer than usual. Many of these thousands now hesitate to buy new cars for fear of being charged with flaunting their own prosperity or because of what t‘,’h"t:::! in business associations may price flield) we know that in 1930 some 40 per cent of those who should have “In our own clientele (the higher-| CREDIT T0 ENGLAND FAILS T PUT LIFE IN EUROPEAN TRADE Britishers Continue Skepticad of Investments in Their Own Country. FRANCE IS ATTRACTING BULK OF PRIVATE FUNDS Creditor Natiops Abroad Accept Basle Advice, but Disagree on Interest Rates. Bpecial Dispatch to The Star. NEW YORK. September 5.—Cable and radio dispatches to the Business Week xll\"e L!die lfolluwlnz survey of busi- ness abroad for the wee September 5: T Europe.—The conclusion of a franc- dollar credit equivalent to £80,000,000 granted by American and French bank- ers to the Bank of England has failed to produce the desired peychological effect in Europe. Last week it was thought that if England were only tided over its immediate difficulties Europe would enter a period of relative tran- quillity. But now the contrary seems to have been the case. While sterling has been made sales proof for some time to come by the gigantic mobilization of foreign credits with which banking is able to parry the repatriation of foreign capital, theses credits are not sufficiently invulnerable to meet the combined flight of domestic and foreign funds. Flight of Capital. The situation is daily becoming more accentuated due to the average British- er’s lack of faith in the ability of the national emergency government to insti- tute economy measures required to bal- ance the budget that will be palatable toa voting majority. Therefore, domestic capital is continuing to seek a safe harbor outside of England, most of it finding its way to France. All creditor lons except the United States are now agreed in principle upon acceptance of the conclusions of the Basle Committee which, in view of the fact that Germany is unable imme. diately to refund its short-term credits, approved their extension for six months and proposed that each country sep- arately negotiate terms of renewal. Eng- land suggests interest rates of 7T per cent, France 8 per cent, while the hardy Dutch see nothing less than 12 per cent, However, it is thought likely that some concerted action will be taken to reach 8 fixed interest rate equitable to all countries. The death of the Anschluss has been officially announced. It is curious to note that it was not the polemics of The Hague Court that caused its de- cease, but the course of financial events more powerful than human wishes, Since the outset, developments have been such as to force both Austria and Germany to resort to French financial aid which was inevitably conditioned upon the complete repudiation of the Anschluss. It is rumored that France. in ex- change for the recent credit to the Bank of England, intimated that she desired England to recall the 150,000.- 000 shilling Austrian _credit. loaned over the heads of the French bankers, :lx::uwhlch é.;nnovi' only ;:pnyable by a lar cre placed Austr! French banks. A Seeking New Loans. Bulgaria, Poland, Hungary. Rumania and Yugoslavia again all find them- selves momentarily pressed for new {loans and are turning their eyes to- jward Prance in hopes of relief. But, xcept in the case of Austria, interna- | tional lending activities by Prance will henceforth be greatly diminished. Bankers are becoming increasingly fearful of the way demands are ac- cumulating with no end of the crisis in_sight. Berlin. — Germany continued this week to make some progress back to- ward normalcy, but under two shadows. One emanated from the stock ex- changes, reopening on Thursday after being closed for 53 days, with the new level of securities prices drastically lower. The other was cast by the in- stability of the foreign exchange situ- ion. Savings bank returns for the two panic months of June and July show a drop in deposits from 2.67 billions to 2.57 billions, or 3.8 per cent. which was considerably below expectations. Industrial employment is continuing its gradual decline. with the striking exception of the radio industry. to which the Berlin show brought unexpectedly heavy domestic and foreign orders. Paris.—Conditions continue subnor- mal, with the outlook none too bright, but any acute development of depres- sion. throughout the country creating problems similar to those faced by Eng- land seems unlikely. Unemployment is increasing slowly, ‘the week's advance amounting to 2 per cent. But time cuts are spreading, particularly in Northern France, where over 60.000 metal workers are now affected by the recent decision of the railways to suspend rolling stock orders in view of their deficit. Political Handicap. Persistent country-wide inclement weather has serfously damaged the wheat crop as yet unharvested, thereby throwing off "previous estimates of French wheat requirements. The ex- tent of the damage is set at 20 per cent at least. London.—Although British business is temporarily reassured by the prompt economy measures of the new govern- ment,- there is no underlying certainty. The refusal of Labor to follow Mac- Donald, Snowden and Thomas makes the government “national” in name only, with some possibility of finding its program reversed by a Labor -vic- tory when electlons are held. ‘The Labor policy is based on resist« ance to dole cuts, increased direct tax- ation, mobilization of foreign invest- ments with insistence that the crisis is exaggerated by bankers who are instru- ments of an international conspiracy to reduce wages and lower the workers® standard of llving. BOND REDEMPTIONS. Bond redemptions aggregating $94.« 587,020 scheduled for September, 1831, while somewhat less than the $148,698,- 200 for August, are nearly twice the September, 1930, total of $49,220,000. do so, keeping their old cars.” The Packard company is one of the latest to decide upon the establishment of a plant in Canada, following tariff changes that imposed increased duty upon motor car imports. With few exceptions, practically all the leading American motor car manufacturers have arranged for Canadian production tacliies