Evening Star Newspaper, October 11, 1931, Page 61

News of Markets Pages 1 to 4 Part 6—12 Pages WASHINGTON STORE SALES HOLD WELL DURING SEPTENBER Decline Is Smaller Than Av- erage for Fifth Federal Reserve District. GAIN SCORED IN FIRST NINE MONTHS OF YEAR Capital Traction Net Earnings Show Marked Improvement Since August Report. BY EDWARD C. STONE. Retail sales in Washington in Sep- tember were only 1.3 per cent lower than in September, 1930, while the av- erage decline for the Fifth Federal Re- gerve District was 6 per cent, the Fed- eral Reserve Bank of Richmond re- ported vesterday. The report also showed that department store sales in the Capital for the first nine months of the present year were 0.8 per cent ahead of last year, this city being the only one in the fifth district to make & gain during that period. The aggregate amount of retail sales in 57 department stores in 24 cities of the Fifth Federal Reserve District in Septerber, 1931, was 6 per cent less in dollars tha total sales in September, 1930, 19 stores increasing while 38 de- creased in sales during the 1931 month. Sales last Month showed the usual seasonal inerease, amounting to 25 per cent over August sales, however. In the United States as a whole, 513 stores reported an average decline of 14 per cent in sales in comparison with sales in September, 1930. Cumulative sales in the first nine months of 1931 decreased 4 per cent in the fifth district and 9 per cent in the Nation in comparison with sales in the corresponding nine months of last year. The fifth district record for Septem- ber, 1931, was second only to the rec- ord of the Boston district, and for the nine months of 1931 fifth district sales declined less than sales in any other district. Sales Compared by Cities. ‘The Richmond Bank presents a table showing the individual percentages of changes in sales in important cities which have three or more department stores; the comparisons being made with September, 1930, and the first nine months of 1931 with the like period a year ago: Sept. 1931 Jan.-Sept . 1931 ©alE swnmul Cities Baltimore, Md Charl Washi Winston-Salem, n 2 36 17 58 13 16 11 13 28 5.0 & s The figures business is picking up in Norfolk and Lynchburg, Va., and that trade in Durham, N. C.. is also nearly as good as in Washington. Business in Baltimore is better than in Richmond, both for September and the year to date. Fifth District Stands Second. At headquarters of the Federzl Re- gerve Board in this city it wss an- ncunced yesterday that preliminary fig- ures on the value of department store sales show an increase from August to September of somewhat less than the estimated seasonal amount. The Fed- eral Reserve Board's index, which makes allowance both for number cof business days and for usual seasonal changes, was 84 in September on the basis of the 1923-1925 average as 100, compared with 88 in August and 81 in July. In comparison with a year ago the value of sales for September, acccrding to the preliminary figures, was 14 per cent gmaller. The aggregate for the first nine months of the year was 9 per cent smaller. Percentage increases or decreases, compared with the similar periods a ear 2go, follow: . s B 1 No.of roorre 20.° stores. 513 Jan o Bep.t Bep. W 2 U. 8 Total for SitennSasSma 5 L : Onber figires preliminary: in most e month had the same number of days this year and last vear. t was the first time in many months that any district has surpassed the local territory in retall sales. The fact that Boston and surrounding territory turned a monthly decrease into a 2 per cent gain will cause general surprise. Con- gratulations will also be in order. $10,000,000 Bank Deposit Gain. Elsewhere in the financial section of The Star appears a statement compiled by Audley A. P. Savage, auditor of ghe National Savings & Trust Co., showing total deposits in all banks of Wash- ington on tke date of the controller’s last call. cated September 29. It is n interesting summary which Mr. Savage preseus the figures for the three banking groups, national banks, savings banks and trust com- | nies. Deposits are lower than on m! June Sflp(‘n]l. but are far ahead of the returns on the corresponding call last year, on September 24. The June 30 call‘came on a Gov- ernment pay day, when the banks are always filled with cash bv Government workers, while the September call came | after large payments of personal and Teal estate taxes. It is also stated that copsiderable money has recently been switched from bank accounts into in- vestments, the recent slump in stocks having produced what were considered unusual opportunities on the buying side of the New York and other narkets. m’rhe analysis reveals the local banks in splendid condition. This last call finds aggregate deposits of the 39 banks at $275,187,827.46, compared with de- posits a year ago on September 24 amounting to $265,706,200.93, or a gain in the past 12 months of $10,081,626.53, an unuesually large vearly increase. Washington clearing house figures for Saturday were: $4,466,411.74. Capital Traction's Net Better. ‘The September report of the Capital Traction Co., out yesterday, showed marked improvement over August. The company reported a net income for the month of $9,452. while in August the traction net showed a deflcit of $17,408.03. Adding the two totals (Continued on Third Page.) FINANCIAL AND CLASSIFIED he Sunday St WASHINGTON, D. C, SUNDAY INEW A. B. A. HEAD WELL KNOWN N_DISTRICT FINANCIAL CIRCLES lHarry J. Haas Has Won Rapid Success in-American Bank- ing Profession. Held Numerous Offices Be- fore His Advancement to Present Position. As a reward for his long and brilliant service, Harry J. Haas, vice president of the First National Bank, Philadel- phia, and known personally to many ‘Washington bankers, was elected pres- ident of the American Bankers’ Asso- clation at the fifty-seventh annual con- vention just ended in Atlantic City. He succeeds Rome C. Stephenson of South Bend, Ind. From his first bank- ing peeition as Summer clerk in the First National Bank of Berwick, Pa., to the highest office in the gift of the A. B. A, his advance has been steady and flattering. Mr. Haas was born in Luzerne County, Pa., January 20, 1879. He at- tended Wyoming Seminary and College of Business, Kingston, and the Univer- sity of Pennsylvania School of Accounts and Finance, ad graduated from the American Institute of Banking. He be- gan his business career as a salesman, and was later a newspaper correspond- ent, secretary and treasurer of many organizations and an accountant. While working in the interests of the American Bankers’ Association, Mr. Haas has been a member of the Execu- jtive Council of the Administrative Committee, chairman of the Member- ship Committee and vice president and chairman of the Executive Committee, National bank division. He was one of the incorporators of the Association of HARRY J. HAAS. Reserve City Bankers, is past president of the Pennsylvania Bankers' Associa- tion and 15 president of the Bank Offi- cers’ Club of Philadelphia. He is married and hes one son. He is & member of the Merion League, Bank Officers’ Club, Down Town Club, all of Philadelphia, and the Penn Ath- ietic Club, Merion Cricket Club and the Mascnic Fraternity. Mr. Haas is a Republican, makes his home in Ard- more, Pa., and is interested in golf, fish- ing, motoring and water sports. At the Atlantic City election when he was advanced to the presidency, Fran- cis H. Sisson, vice president of the Guaranty Trust Co., New York, was made first vice president and Francis Marion, president of the First National Bank of Houston, Tex., was elected sec- ond vice president. Sisson will be ad- | vanced to the presidency at next year's | convention at Los Angeles. D. C. BANKERS LAUD ADDRESS BY KENT New Yorker Made One of Most Impressive Speeches at Convention. Fred 1. Kent, director of the Bankers’ Trust Co., New York, made what Wash- INVESTMENT BOND MARKET INPROVES Public Sentiment Revived by Rapid Advance in De- benture Prices. Special Dispatch to The Star. 'NEW YORK, October 10.—The in- | ington bankers declare was the most | vestment market turned this week from | important address at the Atlantic City } the prespect of utter chaos to the cheer- convention of the American Bankers' ful and inspiring spectacle of rising | Association. His brilllant speech was | prices. The vitality of the advance car- :’rluen lé‘ntlastdfg:c gafl-"‘;filsflmfié | rled public sentiment with it. The bond e | market touched its low level Monday, e aler el Aabioal) but by the end of the week had recov- Mr. Kent discussed political matters along with finance in a way that gripped | ered an average of 5 pcints, one of the | largest advances made in a single week | every banker present, his first point since the start of the bear market. It being an attack on opponents of an ex- tension of the inter-governmental debt | brought an appreciation of $2,000,000,000 in bond values in the week. | holiday. He declared the postpone- President Hoover's plan to set up a ment of the date when debt payments will have to be resumed is necessary to | 500,000,000 revolving fund for the pur- in i | business_recovery. | Mr. Kent, who is chairman of the association’s commerce and marine commission, said it was clear earller in the year that a moratorium on intes governmental debt payments was ne essary, that his commission recom- | mended such a step, but that “it was | politically impossible to get it because of the forces in government that are necessary in order to allow a mora- { torium to take place until the catas- trophe developed and was upon us. Mr. Kent advocated that this Gov- ernment, with the other governments, arrange for an extension of the morato- rium, preferably for three years, through { allowing business to resume itself some- { what and allow commodity markets to be stabilized, possibly at some higher level. Provision should be made, he said, for reconsideration of the capacity of the nations involved to pay before | | holiday. "Arey we,” he asked, “going to run along from now until close to that date with the uncertainties existing without knowing what we are going to do so that we will have to have another catastrophe before: the moratorium is i "%’:’3 e;l‘m of Premier Laval of France to the United States this month said Mr. Kent, will afford an_opportunity for M. Laval and President Hoover to “pre- pare to do what the nations may need to have done for our further protec< tion.” | " Mr. Kent viewed the growing burden 2! of taxation in this country with con- | cern. He pointed out that Federal, 7! State and municipal expenditures in 25 1929 amounted 0 | about an eighth of the total income of ¢ 1 $78,000,000,000. He stated that many 3 | municipalities hatl reached the point to $9,500,000,000, or wHere they found it difficult to meet their debt charges. Mr. Kent called upon the bankers tq fulfill their responsibilities in relieving the distress of those who want to work {but do not have jobs, but he urged them to oppose the dole system because of its unsettling effect on national | finances; moreover, he said. the dole serious infures the mentalitv of the pe-ple and has a tendency to pauperize them.” LARGER CROPS TEMPER TEXAS PRICE DECLINES Special Dispatch to The Star. | DALLAS, October 10.—Tempering to some extent the effect of the decline in ‘ i the price of agricultural commodities is the larger prospective production of the ‘ district’s principal crops. On the basis of September 1 estimates of the De- partment of Agriculture the indicated production of practically all crops for the eleventh Federal Reserve district showed an increase over that a month earlier and in most instances greatly exceeds the actual production in 1930. The improved outlook for food and feed crops is particularly encouraging, as ! ample supplies are assured for use dur- ing the coming season. Weather conditions have been very favcrable for harvesting and good progress has been made with most crops. Cotton picking has proceeded slowly due in part to the lateness of the crop. Livestock and their ranges are in fair to good ccndition in most sections of the district. CHICAGO DAIRY MARKET. l CHICAGO, October 10 (&) Butter— Receipts, 9,389 tubs: firm; cremery specials (93 score), 34',235: extras (92! score), 34: extra firsts (90291 score(, | 31a32! firsts (88a89 score), 27129; seconds (86a87 score), 24a26; stand- ' ards (90 score, centralized car lzm),i 3315, Eggs—Receipts, 3.405 cases; steady; firsts, e:cru“ firsts, 26; lfruh g 2 ; -current recel 3 i pum‘mux refrigerator firsts, -extras, 19a10%. - the expiration of the extended debt: | pose of releasing frozen bank assets was the motive power behind the improve- ment. Other important factors included the steadying of foreign exchange rates, which put a check on exchange gam- bling and relieved thg markets of the oppressive burden of Speculative selling {on this aceount and the prospect that | the forthcoming Hoover-Laval discus- sions may result in some reciprocal agreement regarding war debts and dis- armament. Bank Rate Change. With these matters in mind, the mar- | ket was able to ignore the uncertainty engendered by the election campaign in England, the instability of the German situation as a result of a cabinet shift, a 60-day moratorium declared by Brazil and the fact that few signs of improve- ment in domestic trade were in evi- dence. When the New York Eederal Reserve | Bank raised its rediscount rate to 215 per cent, the change was immediately reflected in lower quotations for United States Government securities, high- grade municipals, railroad equipments and other forms of readily cashable paper that ordinarily move solely with money rates. But Wall Street was inclined to greet the apparent end of the cheap-money era with a sigh of relief. The attempt |to bring about a broad improvement in |the bond market by the artifice of keeping money rates at low levels had Tun a long course without arriving any- where. It is true that the turn in the money market probably put a damper on Sec- retary Mellon's hopes of refunding any ipart of the fourth Liberty loan in 1933. This was shown by the drop in the market quotations for this loan down |to & 3.40 per cent yield basis, where |it formerly had ranked virtually as a short-term security. | The decline in Government issues had |an even greater significance. Govern- |ment bond dealers had been saying for |months that once junior bonds and the stock ymarket gave evidence of a turn |there would be selling of Governments |by those who last year took shelter in their safety and tax-exempt provisions. | The proceeds of their sales were turned |into second and third grade rail bonds, !junlor industrials, semi-speculative util- |ities and other bonds that had been theavily depressed. Second-grade rail {bnnds like Missouri-Pacific 5s, Erie 5s |and Alleghany 5s recovered 5 to 15 |points from their lows. Industrials such as Dodge Brothers 6s and Texas Corporation 5s ranged from 5 to 6 points above their lows. Utility bonds improved as sharply. Rail Issues Helped. “Railroad issues, in addition, were helped by the probability of a favorable decision on freight rates and by the unofficial, but effective, measures taken to protect savings banks from the ne- |cessity of having to take large losses |on bonds driven far out of line in the previous week's insensate market. During the week new bond offerings 1dropped to a single issue of $12,000,000 {Federal Intermediate Credit Bank ibonds. - Its successful flotation drew at- tention to the advance in .these and |Federal Land Bank bonds. The total jcompared with $23,812,000 last week and $119,739.000 in the same 1930 week. (Copyright, 1981.) { French Bankers En Route Here, NEW YORK, October 10 (Special) — Charles Farnier, under governor of the Bank of France, and Robert Lacour- Gayet_seiled speedily from France for New Ycrk late Thursdey. They are coming here at the invitation of George L. Harrison, governor of the Federal Reserve Bank of New York, who, it is s21d, telephoned last Monday to Paris and invited Gcv. Clement Moret® to come over here. The governor, who never visited New York, was too busy, so Mr. Parnier was invited and Gov. Moret asked Mr. Gayet to accom- MOR NG, OCTOBER 11, 1931. REBOUND N STOCK FOREIGN ECONOMIC PRICES 1S BOON 10 PUBLIC CONFIDENCE Vigorous Upturn of Week Proves Dramatic Event in Wall Street History. HOOVER CREDIT AID PLAN ROUTS FEARS OF PUBLIC Investors Beginning to Respond to Real Values of American Securities, BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, October 10.—On Mon- day, despondency and a general feeling of hopelessness in the outlook and fears for the banking structure of the coun- try, with intimations that business on the exchanges might be suspended; subsequently, elation and confidence and great buoyancy in markets following the several credit relief measures which fo- cused at the White House conference Tuesday night. Such are the strong contrasts in one of the most momentous and dramatic weeks in American finan- cial history. “The tree never quite grows to Heaven.” This was as true in 1929 as in other years of great speculative en- thusiasm. Likewise, no country, its commerce and its evidences of material wealth drop so deep into the trough of depression as its people predict. This is the lesson to be learned from 1931. There is a kind of automatic reduction of leadership and of ways and means of taking care of a crisis, political or finan- cial, when it reaches the point, as it did a few days ago, of involving all of the people in all parts of a nation. Unfortunately, conditions frequently must get so bad that credit is univer- sally affected before relief measures are conceived and put into effect. The country has paid a tremendous price for temporizing with situations over which control is now being exerted and for lack of individual initiative. The events of the week emphasize the de- gree to which responsibility everywhere in the world is being put up to the gov- ernment when it should be assumed, and in the past was accepted, by men of courage and a capacity to organize and deal with emergencies. Steps in the Recession. In the sequence of events, a reaction from inflated prices of securities two years ago had brought about a quick and drastic decline in common stocks. ‘This caused such a destruction in mar- ket values that it quickly contracted the buying power of the public, so that bus- iness began to suffer from the first phase of the market panic as early as Decem- ber, 1929. Out of this developed the decline in commodities which eventually played its part in the troubles abroad. The reduced earnings of corporations alarmed holders of securities, especially those of railroad stocks and bonds, so that a steady and unprecedented depre- clation set in in domestic issues coinci- dent with the general disintegration in the prices of South and Central Ameri- can and Central European dollar obli- gations. As a high proportian of the assets of American_banks is represented in cor- poration bonds, the shrinkage affected many Institutions throughout the coun- try. Eventually there was general alarm among depositors in banks, reflected in withdrawals of currency that was being hoarded each week at a rapidly increas- ing rate. The situations in Chicago and vicinity last Spring and in Philadelphia and its neighborhood the past two weeks | were of the kind that compelled imme- | diate action and out of which has now developed a_comprehensive and most elastic plan for dealing with this phase of the crisis and at the same time bring- ing about many collateral advantages. Confidence Is Restored. ‘There is no alchemy in this program to turn what is brass into gold. The first benefits from the announcement of a “bankers’ pool” of $500,000,000 were psychological. They evidenced con- structive effort and the formation of & plan whose supplements had been thought out in advance. On Monday the American people seemed to have lost their faith. Now they have recovered their nerve and are willing to await patiently the practical reactions from an application of oxygen to numerous members of the banking business world | whose life was fast ebbing out. It is recognized that the law of the “survival of the fittest” will apply now, as in the past, and that the new plan cannot make poor assets good assets or re-create out of inferior managers a body of men endowed with great busi- ness wisdom. A lot of bad and irre- and be liquidated. It is those that are fundamentally strong, but embarrasse by narrow markets for their assets that will be most benefited by the proposed distributions of additional credit through a regibnal banking agency. A week ago this writer stated that “the stock market will not stabilize until bonds stop declining. Business will never recover until stocks are stabilized.” Because of the Government plan there already has been new life injected into the bond market and new hope reflected in the stock market and, to some ex- tent, in the market for commodities. It is fair to presume that these changes will gradually modify the point of view of the producer and consumer and that, while no great enlargement of business activity is to be expected this year, it may be confidently predicted that the period of constant recession in the trade barometers has ended and that little by little the volume of foods moving into the hands of the public will increase as their alarm over their bank deposits and their investments lessens. Basis of Permanent Rise. The stock market has not yet had an improvement of the duration or extent equal to that which came out of the “debt holiday” proposal last June. It in a position, however, to benefit more from its latest relief measure, as this specifically concerns the domestic situation, than it did from the earlier one, because it is more understandable and directly agfllluble by and to the American public. Furthermore, the market position is technically stronger than it was four months ago, due to the tremerfdous liquidation that has taken place meanwhile, thus establishing a b of real values to which investors are now willing to respond. If, out of the conferences that are to be held here next week between representatives of the Federal Reserve and the Bank of ‘France and later between President Hoover and Premier Laval, there is the supplementary advantages procured of an understanding both on credit distri- bution and the subject of international debts and_disarmament, the basis of a sound and permanent improvement in American investments will have been created. The_appearance of political unity tn _(Continued on Fourth Page.), 4 trievable situations must go by the bonr:y_,1 & Yoty (Rtanic seoina with 1158, 161> 9 L o~ o 7w Sy GERMANY HELD UNABLE TO PAY | REPARATIONS AND TRADE DEBTS BY DR. MAX WINKLER. Special Dispatch to The Star. NEW YORK, October 10.—Is Germany | really and truly as poverty-stricken as she wants her creditors to believe? It is almost axiomatic for an in- dividual who is indebted to his neighbor | to plead poverty whenever called upon to discharge his obligation, especially when he is convinced, rightly or other- | wise, that the debt is not an equitable | one. How much more true is this in the case of governments, who find it | much easier to evade payments than individual debtors? Reparations Bugaboo. For 13 years, the world has been kept | in suspense and does not as yet know | how much Germany can or must pay. | Germany maintains that she cannot pay | reparations and commercial loans as well, which the very beneficiaries 0(; reparations payments have permitted to grow to a rather impressive figure. On the other hand, many of the allies who | found receipts very convenient, refuse | to admit Germany's claims that she is | unable to meet all payments. An examination of statistics pertain- ing to Germany's economic situation | should throw light upon conditions in the country. At the beginning of the current year, the index of industrial production stood at 105.4, taking 1925 as 100. Compared with other important nations, France heads the list with 130.1; Great Britain is third with 96.1, while the United States is last with 90.8. _ In regard to the output of electric power, Germany shows an impressive growth. At the beginning of 1931 the index stood at 157.6. The United States was a close second with 145.6, with Great Britain a distant third, the British electric power ,consumption amounting to 111.0. The corresponding figure for PFrance is not available. Building Reports. Building construction showed the greatest gain in France, the index fig- ure standing at 171.5. Great Britain lowed by Germany with 86.6 and the United States with only 72.2. Even in regard to .unemployment Germany is not nearly as hopeless as one is often led to imagine on the basis of reports emanating from cer- tain not entirely disinterested sources. At the beginning of this year the index of employment stood at. 839, taking | the as 100 the 1925 figures. Great Britain ranks first with 945, followed by the United States with 83.9. ‘ With respect to foreign ttade, Ger- many'’s exports for the first five months f 1931 show a shrinkage from the same period in 1930 of 24 per cent, while the decline during the same in- terval of United States commerce amounted to 37.1 per cent, England to 34.7 per cent and that of France to 289 per cent. Figures per- taining to German imports are some- | what less satisfactory, although rela- | tively more favorable than those of the United States and Great Britain, which report losses compared with last vear of 37.0 and 23.8 per cent. re- spectively, against a loss of 349 per cent by Germany. The decline in | French imports amounted to only lsgnich&rd C. Ross, agricultural statistician per_cent. The index of 1930 monthly average of bankruptcies stood at 101.4 in many, against 114.6 for France, and 1242 'for the United States. The cor- responding English index was 89.3. Germany leads in regard to freight traffic statistics. The index at the beginning of 1931 stood at 106.1, taking 1925 as 100, compared with 105.5 for France, 97.3 for Great Britain and 90.0 for the United States. $35 Per Capita Debt. Exclusive of reparations, the debt of German Federal Government amounts to slightly more than $35 per capita, a figure which compares ex- ce})uonllly favorably with other coun- tries. According to the Reichs Kredit Ge- sellschaft, & prominent state-controlled financial institution in Germany, the country had a favorable balance of trade for the first six months of this year amounting to about $224,000,000; while the net balance of services re- ceived over those rendered totalled about $21,400,000. Interest on commer- cial debts absorbed $102,340,000, leaving a favorable balance of international payments of more than $143,000,000. Loans arranged and credits granted to- talled $457,000,000, against which there were withdrawals of $333,200,000 and reparations payments of $214,200,000. It is, therefore, obvious that, with- ut loans, Germany could not meet PAyment on account of both reparations and commercial obligations. It is equally obvious that the status of the latter would be greatly improved by 2 drastic adjustment of the reparations obligations. (Copyright. 1931, by the North American Newspaper Alliance, Inc.) BETTER TIMES SEEN IN NEW ENGLAND Wage Adjustments Expected to Decrease Retail Prices of Manufactured Goods. Special Dispatch to The Star. BOSTON, October 10.—Industry in New England and the country as a whole, which had shown definite signs of improvements from January until June;” was adversely affected by the financial strain abroad which inter- rupted the recovery, according to the September summary of New England business, just released by the National Shawmut Bank of Boston. The bank points out, however, that the rate of productive activity is still slightly above the level of January. Distribution, after allowing for seasonal factors, is below anuary levels. IhfiT;L se :lylln'u in trend,” the bank states, “were accompanied by sharp de- clines in the securities and commodity markets. Retail prices in general, how- ever, remained stable and thus in- creased the disparity between retail and wholesale price levels. . Recent wage reductions and foreign competi- should tend to decrease retal mu-m of manufactured In the Bivted have such price .dém“mtmenu have stim- consumer d and thereby served to increase employment.” SEPTEMBER STEEL ORDERS IN DECLINE Drop of 24,624 Tons in Unfilled Total Is Smaller Than Expected. that of | Ger- | MARYLANDFARMER. INCOME DECREASES Estimated 1930 Income of $77,785,000 Is 22.4 Per Cent Less Than in 1929. Special Dispatch to The Star. BALTIMORE, October 10.—Prelifn- inary estimates place the gross income from farm products in Maryland for 1930 at $77,785,000, or 22.4 per cent less than was received in 1929, according to for the Maryland crop-reporting service. In spite of the drought last year the cash income was placed at $62,407,000. Cash income of commodities actually sold off the farm declined more than | the gross, dropping 24.5 per cent from ! the $82,619,000 received in 1929. The | gross and cash income in the drought | year of 1930 were both about 20 per cent lower than the average of the pre- ceding five years. Incomes from crops and live stock were low in 1930, but live stock income OUTLOOK CONTAINS BRIGHTER ASPECTS Pound Sterling May Be Sta bilized at 15 Per Cent Below Parity. BANKS SHOWING ABILITY TO TAKE CARE OF RUNS Comparative Steadiness of Securs ities Markets Has Aided in Bol- stering Business Senfiment. 8Bpecial Dispatch to The Star. NEW YORK, October 10.—Cable and radio dispatches to the Business Week give the following survey of business abroad for the week ending October 10¢ Europe.—With the disquieting excep= tion of Germany, where more, and pos- sibly serious, financial and political trouble is brewing, the trend of Euro= pean developments and immediate prospects is somewhat, if still only superficially, more favorable. Initial tensions occasioned by England's aban- donment of the gold standard have somewhat relaxed. England finally has decided on gen- eral elections at the end of October. It is expected that the national gov- ernment will be returned, made up of sections detached from all three parties —Tory, Liberal and Labor—uncome mitted to any definite program, but given a blanket mandate to take such measures as its discretion finds neces~ sary to meet present economic ex- igencies. Sterling continues to oscillate ere ratically. As yet, there is no indica- tion as to what may be the true eco- nomic value at which natural stabill- zation and a return to gold parity could be effected, but indications are that stabilization at a rate 15 per cent below parity probably will be attempted after the elections, if these result as now ex- pected. Bank Runs Few. Notwithstanding several rather im- portant bank failures in various Euro- pean countries, few bank runs have started so far, and such as have wers readily controlled. But the movement for repatriation of foreign assets and establishment of extreme domestic liquidity against contingencies in the uncertain future continues to be the most conspicuous financial trend, along with the growing popular hoar tendency. In France, banks actually are sawing up gold bars and retailing slices at premiums. Public gold abw sorption is estimated at nearly two million dollars weekly. Every coun is manifesting a tendency toward seif detachment from outside commitments as far as possible. These tendencies, coupled with distrust in the soundness of the American banking structure, underlie and explain the wholesale liquidations of foreign-owned American securities and commercial paper. London.—Business picked rompte :ly after the lnnouncemen:’pflpu! the long-awaited national election was set fors October 27. terling and the stock markets steady. Resentment over the confi‘: uance of foreign exchange restrictions is growing, most leaders charging they are no longer necessary. They prevent exe port of sterling and hinder legitimate trade in forward currencies. General optimism under the first effects of dee valuation continues. Textiles are bete ter. Inquiry on rayon is stronger. Business in iron and steel, after earls unsteadiness, is strong. Inquiry for cus has improved, includes an order fof 110,000 tons for the Danish state rais ways. Concern Over Germany. Financlal interests are more concern- ed over pending trouble il Germany and declined less than crops. The gross in- come from live stock showed a decline of 10.6 per cent from 1929 to 1930. Gross income from crop sources last year was 34.1 per cent less than that of 1929 and about 359 per cent lower than the five-year average. Cash_income from crops in 1930 de- clined 37.3 per cent from 1929, and was 39.3 per cent lower than the average for the five years 1925 to 1920, Cash income from live stock sources of all kinds last year was only about 10.6 per cent lower than the previous year and was slightly higher than the five-year average. 'RETAIL SALES DROP the United States than over their own position. The New York gold effux and the feverish fluctuations in Wall street are expected to bring back to London much expatriated capital. Recurring rumor that the leading London finance house is tottering, owing to European and South American commitments, is unconfirmed, but adds to the general uncertainty. Occasional unemployed demonstrations in Glasgow, Salford and London are not significant. Paris.—Banking difficulties and wide- spread withdrawals of deposits have conspicuously increased this week, with hoarding a feature of the immediate situation. Banque Nationale de Credit, whose troubles were believed ended last week when a consortium under the ladership of the Bank of France came IS LAID TO WEATHER Little Change Reported During Week—Total Below Same Period in 1930. By the Associated Press. NEW YORK, October 10.—Retail sales showed very little change during the past week as compared with the previous week, according to the weekly survey by the Fairchild publications. Total sales for the week, however, con- tinued below the corresponding week in 1930. The decline in sales for the first nine days is hardly greater than the decrease recorded for September as compared with September, 1930, which showed a decrease of 14 per cent. Unseasonable weather has been re- [PYATS MR VR W sponsible for the failure of Fall e of mer- NEW YORK, October 10.—Unfllled | chandise to show an increase. Lower orders of the United States Steel Cor- | temperatures toward the latter part of poration showed a decrease of 24.624;:2:5m§ ""‘d“’h to d“‘m“‘“' sales of tons in September to a total of 3,144, | tant improvey. warnase: With & resal- 833 tons as of September 30. In Au- Retail prices still tended downward, gust & decrease of 235,359 tons was | With & new low in the present deflation reported. recorded for the retail price index. ‘The backlog of August 31 was 3,169,- | to its aid again, is in a precarious posi- tion. Depositors, still not reassured, are continuing their withdrawals, until they have nearly exhausted the consor- tium’s guarantee fund. The position of the Banque de L'Union Parisienne like- Wise is & cause of concern. Failure of Comptoir Lyon-Alemand, prominent metal dealers, who were capitalized at 8 millions, has jeopardized their asso- clated Firminy steel works, which em- ploy 10,000 workers. Government in- tervention may be necessary. The business tone is pessimistic, in generally taking a skeptical view over developments in England and Germany and being increasingly. concerned over the growing domestic budgetary deficit. August production figures show declines. Coal was down 10 per cent, pig iron 20.per cent, steel 15 per cent. Berlin.—With the political outlook marred by the reconstruction of the cabinet and reassembly of the Reichstag on October 13, German defense of the rapidly dwindling gold reserve has ene tered the final decisive stage. Industry, at the same time, has opened s new wage cut campaign in an effort to meet British automatic reduction of real wages by proportionate lowering of nominal mark wages. - Outflow of Gold. The financial setback, forecast in the Business Week September 23, has been accelerated by the British crisis and s reflected now in the alarming outflow of gold and foreign exchange from the Reichsbank. Since September 8 Among the items showing increased de- 457 tons. On July 31 unfilled orders clines in recent weeks are included both men’s and women's underwear and aggregated 3,404,816 tons, against 3,- | domestics and luggage. 479,323 tons on June 30. On Septem- ber 30, 1930, unfilled orders amounted . to 3,424,338 tons. Financial circles had ted moderate decrease in the steel backlog. It had been pointed out that although production had been kept at a low point throughout September, incomirg busi- ness was small and did not equal ship- | ments. The decrease was substantially small- er than had been expected in Wall Street. SILVER QUOTATIONS. NEW YORK, October 10 (#).—Bar silver steady and % higher at 20%. » Wall Street Goes On Holiday Until Tuesday Morning By the Assoctated Press. NEW YORK, October 10.—The finan- cial community entered on a two-day holiday at the closs of business wdlYAl All of the financial markets, the banks and commodity marksts will be closed | Monday, Columbus day. drain has reached a net total of 78 millions. The loss is due primarily to (1) gaps in the previous foreign ex- change regulations, notably the jncom- plete control of proceeds on export sales; (2) repurchase of their own de- preciated gold bonds issued abroad German corporations and heretofora not prohibited; (3) the retarded, but wein. terrupted, transfer of proceeds on saleg of securities on foreign account. Dividend Changas. NEW YORK, October 10 (#).—Un- favorable dividend changes during the past week numbered 41 and were {om than for any week since the first of says. Favorable seven and also were 3