Evening Star Newspaper, September 20, 1931, Page 55

News of Markets Pages 1 to 4 Part 6—14 Pages BUILDING PERMITS IN DISTRICT THIRD AMONG U. . CIIES Report Reveals Major Gain in August Over Previous Month and Year Ago. KRAFFT AT EQUITABLE INSURANCE OFFICE HERE Fewer Failures Indicate Turn in Business—Dividends- and Other Notes. BY.EDWARD C. STONE. Showing major gains over both the month and the corresponding month a year ago, Washington in August took third place among Ameri- can cities in volume of building permits according to omch}rrepom made . The entire communities in the its in all the cities and by the survey amounted in August, a decline of from July of this year when was $113,957,349 for the Permits ed the| Offerings of Distress Gaso- 5 citles advances' over August, 1929 ~—Washington being included. Krafft Joins Equitable Staff. Prof. Willard H. Yeager, of George Washington University, will conduct a new course in debate at debate The class is to be lim- ited to 25 members and already half that number have enrolled. The com- mittee plans to develop a team for de- bates with Baltimore, Richmond and other nearby institute chapters, the suc- cess of last year's work in public speak- !Xrlg having aroused great interest in this &rt. Fewer Fallures in South. Dun’s compilation of insolvency sta- tistics reveals fewer business failures in the South in August, indicating im- proved business conditions. The re, shows 64 failures in the Richmond Re- in August, rt reveals practically the same conditions as a year ago—83 this year in August, 84 last year in the same month and 80 in 1929. Covering other districts, the report adds: “A separation of the August report by Federal Reserve districts shows fewer failures in the Boston district than in A of last year. The Boston Fed- eral Reserve district comprises prac- ‘ tically all of New England, and any improvement in that section is certain to have a beneficial effect on business conditions in the country as a whole. “Furthermore, in the South and in the Chicago district fewer mercantile defaults occurred this year. The povement shown in the three important sections, esvnlall{ in the manufac- turing districts of New England and Chicago, are particularly worthy of note.” Heard in Financial District. Deeohotdore i this. city, hab decared city, lec] % 1y é!vm‘:nd of 75 of regular yable October 1 stock Beptember 1. stock 1s ‘hange. 2| recommendations for solution of the OIL CURTAILMENT FINANCIAL AND CLASSIFIED he Sunday St WASHINGTON, D. C, SUNDAY MORNING, SEPTEMBER 20, 1931. Teaches Bankers UNIVERSITY MAN SECURED FOR DEBATERS. PROF. WILLARD HAYES YEAGER Of George Washington, who will con- duct new course at Institute of Banking. He iIs an educator of experience and co-al of several books on public S —Harris-Ewing Photo. EFFORTS RENEWED line Cause New Decline ° in Prices. Special Dispatch to The Star. TULSA, Okla, September 19.—Ef- forts to curtail operations are being | renewed in the refining branch of the | oll industry as the result of declining | prices in the wholesale gasoline nu.rl ket. The quotations reached a new i low level for the current movement, with continual offerings of small amounts of the commodity at conces- slons. The distress gasoline originates at probably not more than a half dozen of operal far ‘t’he ’nii.\u:u-m mo\;mznt. is restricted, but it is expected spread. In contrast with the weakness of the market, prices of lubricants REPORT ON SILVER MARKET IS AWAITED Committee of Experts to Announce Plan for Stabilization, of Metal. A By the Associated Press. Considerable interest awaits the re- port of a committee of experts on silver, called together by the International | Chamber of Commerce, who will sub- mit s recommendations to the international council of the chamber on | ¢; October 23. ‘The reluctance of certain of the gov- ernments int to call or attend a diplomatic conference led the international chamber to perts from several of the countries principally interested in the production and consumption of the metal to dis- cuss what measures may be suggested by the chamber to ate the severe effects upon trade and industry of the decline and instability in the price of silver. The conference was scheduled for this week in Paris, but the local chamber believes no report will be made of its findings until formally received by the council. Demonetization policies of ths British government in India and the French government in Indo-China, together with the large stocks of silver in India and China and the complicated cur- rency questlons in connection there- | with, maks this problem one peculiarly adapted to expert consideration. Nu- merous important organizations and groups in the United States have re- peatedly drawn attention to the need for an international conference for the discussion of this matter. The dependence of Mexico and to a | 1! less degree, certain other Latin Amer- icen countries, on silver production and the vital part it plays in the non- ferrous mining industry in the United States and Canada, emphasize the im- portance to American business interests of prompt and adequate study end question. Institute of Accountants, Special Dispatch to The Star. NEW YORK, September 19.—Fear summon ex- | prob} STOCK LIST SINKS |GERMAN ECONOMIC | STATUS DECLARED | TONEW LOW MARK INWEEK'S TRADING Fear of Credit Collapse Abroad Results in Heavy Selling on Exchange. LOSSES DOUBLE COSTS RESULTING FROM WAR Commodity Declines Apparently Checked, but Prices Are 8till Irregular. BY CHARLES F. SPEARE. of a general credit collapse in Eu- rope, and particularly the inability to see h to a satisfactory solution of the political and economic situation in Great Britain, has again haunted Wall Street this week and produced an- other low level of prices for American stocks and bonds and for continental dollar obligations. In the two years since ber 19, 1929, when the summit of the “new era” movement was reached, a destruc- tion in values of securities and of com- modities double the tremendous direct cost of the World War has occurred, while politically and financially Eng- land and Germany have gone backward to a status approximating that of the middle of the nineteenth century. Effects of Foreign Crises. ‘The United States has tried to shake itself free from th extraol ing place on the Bank of England so impressive that large credits by this country and France were necessary to preserve the sanctity of sterling. Lat- BETTER THAN IN"24 Unfavorable Factors Seven Years Ago More Numer_'ous and of Deeper Import. STRIKES AND WAR HELD EUROPE IN THEIR GRIP Occupation of Ruhr Put Central Powers’ Resources in Hands of France. BY DR. MAX WINKLER. Special Dispatch to The Star. NEW YORK, September 19.—Bad though the German situation is, few will deny that it is infinitely better than it was at the beginning of 1924. More- over, at that time, the adverse situation in Germany was materially aggravated by unfavorable conditions prevailing p!‘g:et:illfly thl’&ughout flt:;e !:lflre ‘world. opments during Wo preced- years had been of a disquieting na- ture. A brief review of these develop- ments is pertinent. ‘There were strikes in, Germany, in Denmark and even in South Africa. Civil war was raging in Ireland; Benito Mussolini seized power in Italy and formed the first Fascist government, viewed at that time with alarm by most of Europe. Albania, which was to be elevated to an independent kingdom, was in the throes of a revolution. German Appeal Refused. The Reparations Commission flatly refused Germany’s appeal for a mora- torium. Greece ‘Turkey were at war, which ended disastrously for both belligerents, as wars generally do, but especially for Greece, which was torn asunder by revolution and civil war. terly there has developed in Holland, Denmark, Sweden, Switzerland and Nor- way, nations with strong credit nor- mn{ly, a succession of financial disturb- the | befell the empire of Japan. A revolu- figure S e e ‘The August figures of forel trade this week indicate a phase n?n!hl.l in American exports, valued 44 per cent Jess than a year ago and 56 per cent lower than those in the year of the great high-tariff victory. For the first time since 1914 imports last month ex- ceeded exports. The British foreign trade figures for the year to date too oy e nf main- the traditional exchnnxz parity. Threat to Pound Sterling. Bo we have come to a situation in market for securities at the of this week, when it is the threat to the sterling, instead of the decay of railroads, that forms the battle cry of the bears. The mutiny in the British Navy has made the world lllf Heavy liquidation of American securi- ties has been presumed to come from British owners, though just why mfi lish investors should sell the best stocl on the New York market at the same they are exporting their capital, can only be explained by those gentle- men of Wall Street who sit up nights to find picturesque reasons for market fluctuations. Involved in the British lem is the fear of a national elec- B Erdmm e St ‘whicl it 5 sible to maintain mmd ‘lm',h:edu-lhflllnz pound is being dis- great periods of prosperity in Germany, after 1924, and in Prance, after 1926, followed the revaluation of the mark Liquidation of Banks. Turning to the domestic situation, where it may be separated from egecu ;g cur:iditl(;gl .bmt d m encouraging development for early liquidation of distressed banks and prompt payment to itors of & substantial percentage of There is little excuse for the long y In relieving depositors that follows bank- P, ey L of from cent of the marketable assets ‘withholding distress entire communities. ‘The insistent demand for greater latitude on the part of the Fed- eral Rescrve in rediscount vileges EA LS E S nter. Whose a6 t by Jl:od“"“l Reserve would funds e the American will talk on “Conservative Accounting, @ Safeguard to Investors” in a radio talk to be y’s economic structure. ‘The occupation was followed by strikes the proclamation of martial law Greeks, e Te- 8s is befitting a victor, to sign ty. The Ukraine and 1ying the League of Natlons. 8| it salvation in & dlcuwnhln.m i Opportunity for Profit. A disaster of unparelleled dimensions tion and general strike broke out in Portugal. A new revolution broke out in Greece. The British Parliament was dissolved. By November 3 the mark, which, at par of exchange, was worth 4.2 to the United States dollar, declined to a level where one dollar .could trillion, two hundred bil- Quotations of German thought to reflect accurately the ex- status of the Reich as well as the part of the rest of the world, saw in = t.‘ tu;ua; -ponunm Off¢ t{h‘tor profit. Such o] jes offer them- selves oceulon.pflly. and people with relatively restricted means, but with limitless courage and a certain degree of vision, who take advantage of the (Copyright, 1931.) U.S. TOPS LIST OF INVESTORS IN CANADIAN ENTERPRISES BY CHARLES LYNCH. Special Dispatch t6 The Star. OTTAWA, Ontario., September 19.— ‘The United States is the greatest for- eign investor in Canada and has de- cidedly stepped ahead of Great Gritain in this respect, according to a bulletin issued by the Federal Bureau of Sta- tistics, which declares that the United States owns 1,071 branch industrial plants in Canads, with capital invested c(':‘l,l".m,m. or 68 per cent of the total. Great Britain's $246,616,000, or 14 per cent, is distributed among 172 sub- or affiliated concerns, there are 17 foreign branches with a capital invested of $5,982,000. In all there are 1,260 branch, sub- |is sidiary and affiliated concerns in Can- | thal ada with a total capital of $1,746,220,- 000, of which Canada owns $304,032,000, or 17 per cent. The bulletin states that many of the American branches in Canada, although listed as American controled, were not entirely controlled by United States capital. Many were but 20 per cent and others as low as 50 per cent controlled, noek‘l;; those not abroad, all of which are entirely foreign while | this owned, was $1541355,000. Of this, Canada ‘holds 18 per cent, or $277,~ Canadians hold a of stock in British than they do in similar American con- cerns, the report shows. Of the $199,- 141,000 of British capital in this coun- try, Canadians hold but 12 per cent, or $24,387,000, as compared with 18 per cent of the American capital invested ‘The bulletin states that Canada owns $1,259,000, or 22 per cent of the re- mainder of the foreign capital invested bhere, while Great Britain and the United States hold but 1 per cent of money. Control of Canadian enterprises still remains in the hands of Canadians. It estimated by the Statistics Bureau t the total capital invested in Canada is $17,500,000,000, inclu the bonded indebtedness of the Domi , provinces and municipalities, with the exception of private capital in homes and farms. It is estimated that of this $17,500,- 000,000, about 65 per cent, or $11,500,~ 000,000, is owned in Canada; cent, or $3,500,000,000, in thé. United States; 13 per cent, or_$2,200,000,000, in Great Britain and 2 per cent in other countries. Canada’s total wealth is about $30,- 000,000,000. (Copyright, 1931.) GRAIN VALUES LOWER AS STOCKS WEAKEN situation, reap handsome profits, The writer knows of two organizations in the United States, one in the East and one on the Pacific Coast, which entered the German investment market on a rather extensive scale and, within the relatively short of two years, realized a very sul tial “(1;:1 It is also worth recal that in Great Britain a trust was ine ted for the of investing exclusively in Central pe and that within one year it had been able to report earn- ings equivalent to the entire original capital. ; ’ll,‘lm signal for the change in the sit- uation, as far as Europe in general and Germany in particular are concerned, was n by the League of Nations. The ce Committee of the League adopted, among other measures, two of far-reaching import—approval of a loan to rehabilitate the Austrian Republic and an order to inquire into Germa fiscal crisis, with a view to remedies. Recent Progress. Despite all the diiculties with which the world is confronted today, one is forced to admit that much progress has been registered within the ren cgutm years and that not all su progress | of could Foflsibg.hnvz been neutralized by the adverse happenings of the past two Nevertheless, the market for German stocks is materially below the levels es- tablished early in 1924. Assuming a price of 100 in 1924, the shares of the three leading commercial banks, which Beptamper 16 ot 30,07, THis group nc at 93.67. group in- cludes the Deutsche Bank, quoted at $14.63, as oomm with $19.04 early avz“h"ffn Sidss sever %o B .52 seven years ago, and the Dresdner, quoted at $9.68, as com) with $11.42 in 1924. index of nine representative and most actively dealt in industrials de- clined from 100 in 1924 to 23.07 on ny's | 1 jesting Corn Hits New Low Price—Wheat Also Sells Off Sharply. BY JOHN P. BOUGHAN, Associated Press Market Editor. CHICAGO, September 19.—Persist- ent crumbling of securities led to sharp breaks in grain prices late today. Stop loss selling developed both in wheat and corn, with wheat down to almost the lowest figures this season and corn at new records. All else but bottom | the weakness of stocks was apparently lost sight of for at least the time being. ‘Wheat closed nervous, 1%al¥_cents down; corn, 5all, off; oats at %alls decline and provisions 10 to 35 cents that additional new finan- Russia might be drawn in were regard- ed as making more probable a curtail- ment, if not complete stoppage of wheat exports from Russia. A 1 authority on wheat said that should current estimates of Chi- nese requirements be anywhere near correct, with Russian advices of & smaller crop and probable less exports from Russia, North rica should be provider to import nations, especi- ally the first part of next year. He added that ntina and ~Australia however, would watching on of | additions and improvements which have been made in the meantime out of earnings as well as out of pro- ceeds from the sale of loans and credits obtained at home and abroad. ‘This group includes the shares of Siemens & Halske, one of the electrical ufact: that today | ing owners to | Pri . | ences fluenced by COTTON PRICES DROP - Classified Ads Pages 5 to 14 THE HOLE IN THE GRINDSTONE. 5LAQN000 DRP OGEURS N BONDS Index of 60 Issues Is Now Down to 87.8, a Record Low. Special Dispateh to The Star. NEW YORK, September 19.—Domes- tic bonds listed on the New York Stock Exchange suffered a depreciation this ‘week of about $1,000,000,000. Standard Statistics’ index of 60 bonds dropped from 90.4 to 87.8, a new record low. That index, however, covers only do- mestic issues. If a reliable index of foreign dollar bonds were available, it would undoubtedly show a considerably T e. A fairly representative list of 10 for- "“'u,. had °:n‘llv e dur. tals to the total of 5:.&0,900,000‘ in listed on exchange :I:F :ln an indicated depreciation of $1,170,590,000. The total shrinkage in market values, therefore, was over $2,000,000,000 and since as many issues are traded elsewhere it may be conser- vatively estimated tha domestic and foreign hands of American have TO NEW LOW MARKS | “seee Heavy Southern Selling Depresses the Market, With Close 13 to 16 Points Lower. By the Associated Press. s the NEW YORK, September 19.—Cot- | The ton broke into new low ground for the season here today under heavy Southern selling and liquidation which seemed to be promoted by the increase in Southern offerings combined with some nervousness over the situation in China and uncertainty as to the further action of sterling exchange. December contracts sold off to 6.40 or 16 points net lower and closed at that figure, with the general market closing easy at net declines of 13 to 16 points. ‘The opening was steady at a decline of 3 to 7 points. Liverpool cables were better than due on the New York close of Priday, but this was attributed chief- 1y to readjustments following yesterday’s recline in sterling which might tend to widen New York-Liverpool differ- and the market here was in- the appearance of heavier Southern selling orders. This evident- ly promoted liquidation of some old long accounts and while offerings were taken by covering or trade buying en sale down orders, prices gradu: ked lower. wv;te volume of Southern hedging red off somewhat after the early :g,:flnn had been absorbed, but the from this source continued ‘weakness market outdid ward the end of the week when anx- jety over the British crisis became (Copyright, 1931.) S S BELIEVES SAVINGS GAINS ally | acute, FOREIGN BUSINESS FAILS T0 REGISTER SEASONAL ADVANCE Buyers Still Cling to Policy of Small Hand-to-Mouth Purchasing. COMMODITY PRICE LIST SHOWS STEADIER TONE British Securities Markets Are Buoyed by Growing Demand for Tariffs. Special Dispatch to The Star. NEW YO Sej - - RK, wmbe:mu—mlo P efsf :g! r@s LT % their supporters admit the inevitable consequent rise of mplayme‘t and slacker trade, thus making the ter outlook black. Well based estimates of Winter unemployment run as the week | port second we exaggerated spread between foreign and «domestic nr'ljw unchanged when eom- pared with January. The stock market has touched new resistant. mestic self-sufficiency. mernts are inconsistent with oft- assurances of French co-opera in international economic reorganization, and also tend to reduce the importance of Prance as a world factor, save as it is offset by colonial expansion. Berlin—A new wave of and WILL END DEPRESSION |in imports in the mamummmvmm il ot}