Evening Star Newspaper, October 14, 1931, Page 12

FA—12 GERMAN INDUSTRY CONTINUES. QUIET Business Men Are Trying to | Solve Problem of Pro- i duction Costs. " Recent developments, especially in nnection with the depreciation of the und sterling, have had an unfavor-! @ble repercussion in Germany, and do- estic developments, including the con- ued reduction of working capital and unsettled political conditions, have also been adverse, the Department of Com- nerce has announced. German business is strenuously en- Weavoring to reduce production costs, but definite improvement is impossible ®ithout a resumption of more normal ternational credit operations, accord- g to a Berlin cablegram to the de- partment. 1 Situation in France. The department has also been l%' e @ised that e gradual recession continu fn French industrics, but the financial position, except for the difficulties of peveral banks, has shown remarkable rength. A cable said more favorable eather since September 1 has par- tially offset the edverse effect on agri- gulture of the extreme damp Summer. Spain has experienced relatively little effect from recent financial develop- | ments, according to a department cable, with business continuing on a low level. Foreign trade has been unusually slack. Commenting further on favorable and uniavorable factors in last week's developments, the depariment said: “Egyptian foreign trade has suffered from recent exchange uncertainties, and domesti~ business has been cur- tailed 25 a result of the sharp drop in tourist traffic. Greeg importers have been placed in a rather difficult situd- tion, owing to the extension of forelgn exchange control regulations. Inabil- ity of the Polish government to reduce expenditures to keep pace with the decline in revenues is causing a con- siderable deficit; foreign trade has de- clined sharply. with imports particularly restricted. Seasonal improvement is 4n evidence in Canada, although buying gemains cautious. Japanese Trade Depressed. “The principal Japanese industries pemain depressed, with future restric- tions of production likely in cotton textiles and kecner competition ex- ected in iron and steel, as a result of e decline In the pound sterling and the Indian rupee. British Indian ex- port trade has feiled to respond as ex- pected to the depreciation of the rupee. General conditions in French Indo- China show some gain, although credit eonditions are unsettled and the rice market is weaker. Slightly firmer copra and abaca prices have strength- ened optimism in the Philippines, al- though actual conditions are ~un- changed. Exchange developments have caused somewhat more active trading in Australia and a lightening of the unemployment _problem. “Import trading and distribution re- main depressed in Argentina, but ex- rts of corn have been extremely ac- | ive with grain prices rising. Mexican business has not responded appreciably to the improvement in exchange; petro- Jeum production and gold and silver mining continue to decline.” Everybody’s Business Apprehension Over Far East- ern Difficulties Influences Seciirilies— German VB fects Also Seen. BY DR. MAX WINKLER. Bpecial Dispatch to The Star. NEW YORK, October 14.—Once again the securities markets seem to be under the influence of the foreign situation. ‘The Far Eastern difficuities, with Japan seemingly defying the League of Na- tions, the Kellogg pact and other in- struments designed to promote peace among natiogs, are causing scme appre- hension, even though it is still hoped that Japan will not resort to actual warfare. News from Germany also leaves a good deal to be desired. Dr. Hjalmar Schacht, the former president of the Reichsbank, prompted no doubt by political ambitions, has been giving out very alarming statements regarding Ger- many’s fiscal conditions for the pur- pose, it would seem, of impressing the Reich’s creditors with the fact that continuance of reparations payments will be impossible if Germany is ex- pected to meet all commercial engage- ments. Bruening More Constructive. A much more constructive attitude is that of Chancellor Bruening. He se- werely criticizes Dr. Schacht for his ut- terances and has definitely come out inst a moratorium by Germany, threatening to resign at once should Parliament declare one. He further advocates the creation of an economic general staff empowered to evolve an economic program of which the corner stone would be the maintenance of the stability of the German mark. Dr. Bruening regards the enforcement of a plan for funding short-term debts and final ciarification of question as of decisive importance. ‘Those who fear important political changes may take place in Germany, which are likely to be viewed with mis- givings by the country’s neighbors, should bear in mind that reactionaries are much more threatening and formi- dable when out of power than after they assume power and with it certain responsibilities News from abroad, together with the gather marked advance during the greater part of the past week in the prices of securities, has somewhat weakened the technical position of the market, and have combined to bring and brought about lower quotations. It is, however, within reason. to assume that nothing will occur to”warrant the be- lief that serious unsettlement is im- pending marketwise. Bank Aid Assurance. ‘The Hoover plan relative to the formation of a $500.000,000 corporation will assure the country that banks with sound assets in any part of the United States may obtain aid when needed, according to Mortimer N. Buckner, president of the New York Clearing House Association, and head of the new enterprise. Mr. Buckner also points out that the amount of money subscribed by the banks in each district will not limit the amount they will be able to borrow. ‘The articles of incorporation of the enterprise, which will be known as the National Credit Corporation, are being filed today at Dover, Del., and the op- eration of the undertaking will be put into effect within the next few days. ‘The anticipated successful function- fng of the corporation should bring to an end the epidemic of bank failures and the hoarding of currency, thereby Jaying a more solid foundation for a revival of business and the return of pormality. An immediate repeal of the so-called Yecapture provisions of the interstate comgerce act, which grant the Gov- ernment the right to recover one-half of the carnings above 6 per cent of the \alue of a railroad, is advocated by R. C. Fulbright, chairman of the com- mittee of the National Industrial Traf- fic League. The repeal of this statute, continues Mr. Fulbright, and a revision of the unsound rate-making rules, will do more to re-establish public confidence . #ng the impaired credit of rallroads the reparations | THE EVENING STAR, WASHINGTON, D. C, WEDNESDAY, OCTOBER 14, 1931 NEW YORK BANK AND TRUST STOCKS SCORE RAPID GAINS Rise in Securities A Credit Aid Plan ttributed to Hoover and Prospect of Higher Interest Rates. BY CHARLES F. SPEARE. Special Dispatch to The Btar. NEW YORK, October 14.--Two ele- ! ments have entered into the buoyancy |in the stocks of New York bank and trust compagies and in those of other ! eities \l‘he%(fluflunal shares have a broad market, | tended to the general banking situation through the National Credit Corpo- ration and the prospect of increasing terest rates on deposits to the extent | that this may draw back into the banks ‘funds of institutions and individuals | and permit-of the enlargement of their earning assets. | _The advance in bank stocks during the past week has amounted to about 25 per cent and is one of the sharpest in months. It started from a level where the shares of New York institu- tions showed a depreciation in market values from 1929 of nearly 85 per cent, | representing one of the heaviest shrink- ‘ages that had taken place in any group | of securities. The action of such stocks | has brought into question the soundness | of the policy that prevailed a few years lago of splitting up bank stocks into | smaller units in order to popularize them with a public which has shown its timidity over such issues during the period of depression. Many believe that had bank stocks bcen owned in large blocks as formerly and by their original wealthy clientele there would | not have been the slaughier in prices that has taken place in them. | Few Decreases in Dividends. | It is significans that in spit> of the + depreciation in the securities held by New York banks and trust ccmpanies | 1and of a reduction in normal earnings during the period when interest rates had been at the lowest in this gener- | ation, there should have been so (ew‘ decreases in the dividends on bank | stocks. With two or three exceptions all are paying as much as when their | earnings were at the top. The unusual | condition has prevailed of returns of 10 | per cent and over on the shares of the | two largest banks in the United States. Furthermore, recent statements indicate that they have not only been covering | their dividend requirements, but have ' been adding to their undivided profits. | Recently the deposits of the local banks have experienced harp reces- .sion. The statement yesferday of the | Federal Reserve Board of the condition {of member institutions on September 7| These are the relief ex- in showed & decline of $639,000,000 in time and demand deposits compared with the week previous. It is expected that gradually these deposits will be returned, now that the public nervous- ness over banks in general has been dispelled. Some of the losses of the commercial banks have been reflected the gains of savings institutions. Following each reduction in the rate of rediscount of the New York Federal Reserve Bank during the past year there has been an equalization in de- posit rates on the part of members of the New York Clearing House Associa- tion. The last one, which was put into effect in the Spring, brought the rates down so low that the country bank re- ceived hardly any net from its corre- spondent in New York. The same was true of money loaned on call where the official rate was 11, per cent, and fre- ouently the outside rate, 1 per cent. from which a commlssion is generally subtracted by the leading institution. While time-money rates have advanced since the Federal Reserve raised its re- discount to 217 per cent, and there has been an increase in the rate on bills. the latest appearing yesterday, call money has not shown much change. The most recent statement of brokers’ loans indicated a total of loans by “others” of nominal proportions. Concessions to Borrower. During rates on moderate the period of extreme low bank deposits there was & conzession to the borrower— say. from the normal rate of 6 per cent to 5 per cent—and an adjustment in some sections of the country from & 6 per cent to a 5 per cent basis on real | estdte mortgages. There was, however, never a full revision of the primary borrowing cost to the extremely low rates of interest that have obtained. Consequently, increases in rates on de- posits, following that on Federal Re- serve rediscount rates, are not ex- pected to penalize the borrower for some time to come. What the banks hope it will accomplish is to bring a return of deposits of corporations and individuals to them from the market for short-term Government and mu- nicipal securities that were also pro- viding the lowest rates of return on record, but, even so, gave a better net yield to the holder than he could ob- tain on his demand deposits. (Copyright, 1931) [URGES 60-DAY BAN ISEVEN INDUSTRIES HELD ON SHORT SELLING Boston ‘Man Scores Bear Methods and Believes Move Would Restore Confidence. Special Dispatch to The Star. BOSTON, October 14.—Urging that the New York Stock Exchange be com- pelled to put a ban on all short selling for 60 days, A. S. Brown, jr., president of a concern which makes a feature of construction reports, has sent the fol- lowing telegraphic plea to President Hoover: “Business and confidence go hand in hand. Business cannot go ahead with- out confidence. Confidence is being throttled and has been throttled for more than a year by professional short sellers, who not only will not allow securifies to return to prices represent- ing their true worth, but every little while depess them farther and cause more necessitous selling. Many believe that a 60-day moratorium on short selling, with some restrictions there- after, would do more than anything else to restore confidence and stimu- late business. A two-day ban on short selling worked well. Why not ask the Board of Governors of the New York Stock Exchange to ban short selling entirely for 60 days? If they will not comply with your request it will be be- cause they know the quick recovery that would follow would be conclusive evidence to the public that short sell- ing is most injurious to business in times of depression and appropriate legislation would follow.” RICHMOND BANK HEAD ON CREDIT AID BOARD Special Dispatch to The Star. RICHMOND, Va., October 14—John M. Miller, jr., president of the First and Merchants’ National Bank of {Richmon@, has been appointed a mem- ber of the board of directors of the Na- tional Credit Association, the $500,000,- 000 corporation planned to release frozen assets of the Nation's banks. Mr. Miller, recognized as one of the leading bankers of the South, will rep- resent the fifth Federal Reserve dis- trict, of which Richmond is the center, | when_the board meets Saturday at the augurate the work of organizing the entire country. nerally than anything else that can done by the coming Congress. It is estimated that the Interstate | Commerce Commission will demand | about $350,000,000 from the railroads | under the terms of the recapture clause. | Steel Corporations’ Outlook. On the basis of information thus far | available, steel corporations are not likely to make what would be regarded less, this need not necessarily affect ad- versely shares of leading enterprises. A favorable decision by the Inter- state Commerce Commission should help the carriers appreciably, and in- asmuch as the railroads are the largest consumers of steel, the outlook for steel companies may be viewed some- what optimistically. Furthermore, pur- buying of steel products generally. The time has come when railroad wages must be reduced, says Fairfax Harrison, president~ of Railway Co. Railread labor should make the same have done, continues Mr. Harrison. He adds that it organized labor would ac- ! cept a reduction in wages equivalent to that taken by the offizers, the road would be very much better off than it is today, although it would still be in an uncomfortable position. With United States Government lI.‘Kmds selling to yield 32 per cent and | slightly in excess of this figure, vand with the rediscount rate at 2! per cent, an increase in the rate of interest paid by banking institutions is likely to be |nuthoflud by the clearing house in the not distant future. At the present time checking ac- counis do not earn more than one-half of 1 per cent. It is also likely that the | prevailing low rates have played an important part in the withdrawal of funds for foreign accouwl, so that a higher rate might tend to keep funds, now moving to forelgn centers, in New ork. ‘The flight from the gold standard continues. Three more countries have followed the example set by Great Britain last month. The new members of the paper standard include Finland, g'nl;th:rn Rhodesia and Southern Rho- esia. The effect of this move on American trade and industry is not expected to +b> very pronounced. America’s com merce with Finland approximatcs $20,- 000,000 a year, while trade with the Rhodesias is negligible, their principal dealings being with Great Britain. How- ever, copper companies operating in Rhodesia should benefit. right. 1931, by the North American b Newspaper Alliance, Inc.) {New York Federal Reserve Bank to in- | chases by the railroads should stimulate | the Southern | contribution as the officers of the road | RELATIVELY WELL OFF Seven industries, states the United Business Service of Boston in its cur- rent report, are in a relatively good position at the present tume. These are as follows: Specialty bakers, distributors of dairy products, package food companies, cigarette manufac- turers, chain stores, domestic refriger- ator manufacturers, and utilities. VIRGINIA TOBACCO OUTPUT FORECAST 114,112,000 Pounds Is Esti- mated Yield for the Present Year. By the Associated Press. RICHMOND, Va., October 14.—Vir- ginia tobacco production in 1931 was forecast today at 114,112,000 pounds by the Federal-State Crop Reporting Service. This forecast is slightly below the September 1 estimate of 117,815,000 pounds, but still above last year's pro- duction of 111,776,00f unds, the re- port, prepared by Henry M. Taylor, State agricultural statisticlan, explains. Average production for the past five | years was 121,753,000 pounds. 98 Per Cent Harvested. Growers reported 98 per cent of the | crop harvested on October 1, due to | favorable weather conditions. ‘The forecast for flue-cured tobacco declined, as the leaf is thin and lighter greater this year, but the forecast of 65,169,000 pounds is about 14 per cent below last year. Flue-cured markets during the first three days sold 916,596 pounds at an average price of $7.51 per 100 pounds. Quality is estimated 10 per cent good, 32 per cent medium and 58 per cent common. Fire-cured tobacco is forecast at 34,128,000 pounds, practically the same as the September estimate, but con- of 23,330,000 pounds. The burley crop improved slightly | during September, but the yield per acre is not expected to be as heavy as | last year. Acreage is larger, so the fore- cast of 9,996,000 pounds is slightly | above last year's production of 9,750,000 pounds. Good Maturity. Sun-cured tobacco matured in good condition and the season was quite fa- vorable for curing. Yield is heavier 000 pounds, as against 3,380,000 last year. Weather conditions throughout the United States were generally favorable for the development of late tobacco and unusually favorable for harvesting and curing. Flue-cured production of 694,194,000 pounds is 19 per cent less than 1930 production. Burley prospects improved for the entire cauntry during Septem- {ber and a production of 467,773,000 | pounds is forecast, about 34 per cent above last year. | Tmport Rates Increased. ‘The Italian government has increased the rates of import duty on rice, ac- cording to & radiogram received by the Commerce Department from Commer- | cial Attache Mowatt M. Mitchell at | Ro The new duties, in paper lire per 100 kilos gross, are as follows (old rate in parentheses) : Rice, in the husk, 41 (11); Partly husked, 50 (15.50): cleaned, 60 (23.90), and ricve meal, 60 (23.90). to present holders of Regarding a New Telephone: District 9310 than expected. The yleld per acre is | siderably above last year's production | than last year, being forecast at 4,819, | CRUDE OIL PRODUCTION GAINS 20,022 BARRELS By the Assoclated Press. TULSA, Okla, October 14.—Small gains throughout the United States, with the exception of Oklahoma, ac- counted for an increase of 20,022 bar- rels in the daily average crude oil pro- duction for the week ending October 10, the Oil and Gas Journal estimates, bringing the total output to 2,155,514 barrels daily. Oklahoma's production was 251,135 barrels, as compared with 273,135 bar- rels for the previous week. Total midcontinent production was 1,232,797 barrels daily, as compared with 1,230,706 barrels. East Texas pro- duction was 403,884 barrels, as com- pared with 381,306 barrels. Kansas' output was 107415 barrels daily, in (‘:.r;l'l;rut to 107,210 barrels the previous Eastern production was up 3,000 bar- rels daily to 118,000 barrels. ‘The Rocky Mountain pools flowed 92,427 barrels daily, as compared with 90,984 barrels. Califorpia’s production was up 12,250 barrels daily to a daily total of 505,000 barrels. 'COMPANY FINANCING RULES ARE ADOPTED Chicago Curb Exchange Requires Full Reports From Corporations Before Listing Stocks. | By the Associated Press. CHICAGO, October 14.—Measures to ‘hcumu company financing considered |to be of a promotional nature, but at the same time protecting the interest of investors, have been adopted by the | Chicago Curb Exchange. It was announced today that when a | corporation which has given options on | blocks of its treasury stock makes ap- | plication for listing on the Chicago Curb Exchange the Listing Committee will require that certified copies of the option agreement and all assignments of such agreement, together with a list | of all dealers who will participate in | the sale of stock, and copies of all vir- | culars gnd sales material to be used in the salé of the stock, shall be filed with | the committee. Before the stock may be listed and offered for sale these ar- rangements must be found unobjection- able by the Listing Committee. “Under present conditions in the se- curities markéls an underwriting of a new stock issue is practically unknown,"” sald Clarence G. Troup, president of the Cutb Exchange. He added: “The Curb Exchange has received | during the last year a large number of | applications in connection with which | investment bankers have secured op- tions for the purchase of treasury stock | and have proposed to distribute this stock against these options. Our List- ing Committee has felt that this method of distribution opens up many objec- tionable possibilities. | “The additional safeguards which the | committee has now thrown around such | applications will now, however, make it | possible for the Curb Exchange here to accept listing applications from corpo- rations regarded as meritorious but { which have been unabie to effect financ- | ing_arrangements involving an_under- | writing by an investment banking ! institution.” IMPORTANT INFORMATION CORPORATE TRUST SHARES ACCUMULATIVE SERIES Contained in a special circular, a copy of which may be had on request | GrAHAM, PARSONs & Co. 1422 WALNUT STREET PHILADELPHIA 48 WALL STREET NEW YORK 300 SOUTHERN BUILDING—WASHINGTON | as a satisfactory showing. Neverthe- | OFFICERS: GEO. W. WHITE, President 0. H. P. JOHNSON, Vice Pres. A. A. HOEHLING, Vice Pres. Trust Officer and Gen. Counsel C. F. JACOBSEN, Cashier R. P. HOLLINGSWORTH, Asst. Trust Officer S. W. BURWELL, Asst. Trust Officer C. E. BRIGHT, Asst. Cashier R. E. BRIGGS, Asst. F. E. HILDEBRAND, Cashier F. V. N. COOK, Auditor CCESS to the complete cilities few, who can' carry large ances . . . But is an advant open to all, desiring The Best in banking. @For the convenience of Pay- day Depositors we will be— OPEN UNTIL 5:30 P.M. THURSDAY, OCT. 15th National Metropolitan Bank Capital, Surplus & Undivided Profits Over $2,300,000.00 and Exceptional Service of this veteran bank is not a privilegé of the favored ‘The Oldest National Bank in the District of Columbia DIRECTORS: LOUIS D. BLISS T. BRICE, fa- bal- age vl TLLY. JR. E. FRANCIS ‘RIGGS H. C. SHERIDAN | ?7rom, NEW YORK AVENUE a¢ FIF TEENTH @ Heeping Washington Men Well Dressed ® Closing Out "OUR ENTIRE STOCK Except a Few Nationally Advertised Brands Prior to Reorganization P-B is Nationally Known for high quality in MEN’S AND BOYS’ CLOTHING, HAB- ERDASHERY, HATS AND SHOES. Prices throughout our entire stock are now radically re- duced. Quick clearance is in order. New Fall merchan- dise just received or arriving daily is included. All sales are final; all trans- actions for cash only. Smart Fall Topcoats Greatly Reduced $19.50 It’s topcoat time, gentlemen, and here are the topcoats— the new types and textures for Fall, 1931. Drop in and slip into a smart tweed or a covert. that is being worn by well-dressed men. for beauty and durability. Select from every shade All Celanese lined Newest Fall Suits Greatly Reduced $19.50 Worsteds are right up in front this season. They’re fashion- able as a fabric can be, and they’re more durable than most other fabrics can be. Every one of these suits is a fashion- able, durable worsted, lined with lustrously rich Celanese. Blue Serge Suits With Extra Trousers $94.50 We call your attention to two facts: First, that these are really Greatly Reduced fine blue trousers. serges; second, that every suit has two pairs of Single and double breasted models, all hand- somely lined with Celanese, the fabric that looks like silk and wears ](’mger. Sizes 35 to 48—regular, short, long and stout. Two-Trouser Suits Greatly Reduced $29.50 Here.are styles that we offer by “special permission of the copyright owners,” models that are exclusive with this group, handsomely tailored. We do not believe that their quality can be even approached elsewhere at a price as low as $29.50. Every suit has extra trousers and is lined with a fine quality Celanese. All sizes—regular, short, long and stout. No Charge for the Usual Alteratiors Free Parking at the Capital Garage While Shopping Here New York Avenue at Fifteenth Branch Store: 3113 Fourteenth N.W.