Evening Star Newspaper, October 17, 1931, Page 13

FINANCIAL. NEW YORK STOCK EXCHANGE Received by Private Wire Direct to The Star Office. "THREE MORE BANKS BACK HOOVER PLAN Liberty, Franklin and Na- 't tional Capital Vote Sub- -seriptions to Fund. i , BY EDWARD C. STONE. Three more Washington banks have | voted to support the Nation-wide move 'to ‘heip-stabilize banking adn economic !conditions and have subscribed their {full quotas to the fund of $500.000,000 'or more being reaised by the National ! eredit Corporation. These three banks are the Liberty .National, Franklin National and the i National Capital, the directors of all fthree showing marked enthusiasm over [the idea of 8 pooling of funds to frec sound but frozen assets and thereby place many institutions in a more liquid position. In all these banks the opinion was expressed that the move is sure to prove most helpful. Plans Sent Clearing Houses. Tn all the larger cities in the country the clearing house associations are giving valuable service in working out the plans, the same being true here Copies of the plan of organization and for operation of the National Credit Corporation as well as subscrip- tion blanks to the notes of the corpo- ration have been sent to all clearing houses throuhgout the country. —For the guidance of the interior banks which will be affiliated with the local associations. the method to be followed to obtain the facilities of the corpo- ration is explained. It is essential that each bank subscribe to the notes of the corporation on the basis of 2 per cent of ‘the net demand and time deposits ?of the subscribing bank mot to exceed iin any case 10 per cent of its capital nd_surplus. | B hete i ‘a limit to the liability of | fach member bank in respect not only f its own obligations under the plan. | ut aleo of the obligations which may "be incurred by the group of which it} is_a, member, The conditions under which advances fmay be made by the corporation to any group or association in excess of the ' aggregate note subscriptions by the members of that association is also explained. Will Give Banks Needed Cash. Copies of the plan of operation of the credit fund, which have been re- ceived in Washington, declare that the credit corporation will assist banks with sound assets (even if mot tmme- diately lquid) in obtaining casi. The| support of the .banks of the country is being given to the plan because of the sound banking principles on which it is bemg developed. It is believed that the greatest contribution that can be made to confidence is to have the public understand that banks mfay be ®ssured through the Credit Corporation of being zble to convert sound slow assets into ‘cash when necessary. Every bank and trust company in the United States is being requested to subscribe for the gold notes and many of the savings banks have already stated that they wished to be included in the movement. While Washington banks are in too good & position to need funds from the pool, officials say they are glad to give a helping hand to less fottunate institutions where they may nced -te convert some of their Sccurities into cash in an effort to keep more - liquid.. School Savings Meet Hard Test. hool savings in the United States during* the past year successfully met its greatest test of adverse times, in- creasing the area of its operations and affording financial succor to families whose incomes bave been reduced, it is shown in the annual national report on school savings banking issued by the savings division of the American Bank- ers’ Assoctation. “School savings during the year clos- ed June 30, 1931, had its greatest test and_demonstrated its possible service,” W. Espey Albig, deputy manager of the association 1 says in the report. throughout the country 4.482,634 chil- dren deposited $26.783.610." Eighteen more schools have school savings than Aast year, the number of children util- izing school savings is 115,097 smaller ‘snd money deposited loss by $2,329,453." He points out that these figures show that the number of schools, as com- pared with jast year, where savings may be deposited by children and they may hLave instruction in the meaning and use of money, has increased. while the number of pupils depositing de- creased by only .025 per cent and de- yosits by only 8 per cent, despite wide- Spread unemployment. “That for two years school savings ha$ faced adverse conditions and yet continues to enlist interest and enter new territory evidences the soundness of the idea of giving children a work- ing knowledge of what money is, the part it plays in everyday life and the maghirery by which it is conserved and utilized in -the best manmer for the| good of the child or the family,” Mr. | Albig declares. | Heard in Financial District. The National Association of Mutual ualty Companies and the National Associdtion - of Automotive Mutual | Casualty Companies will hold their an- | nual meetings at White Sulphur Springs, Va., October 19, 20 and 21. Pestal savings deposits on September 30 totaled $460.914.464, against $414. 985,325 a_month previous, and $188, 924,190 on September 30, 1930, accord- ing to the. Post Office Department. Hugh Leach, former head of the Charlofte branch of the Federal Re- serve Bank of Richmond, has been appointed, managing director of the Baltimore branch, succeeding Albert H. Didley, who resigned to become exec- utive ‘vice president of the Baltimore Trust Co. The .board of governors of Wash- ington Chapter, American Institute of | Banking, has voted to print one more | iscue of -Deollars and Sense, the chap- ter official news medium. It is also hoped that by the time this issue.hss been printed funds. will be found.in | some out-of-the-way plice with which to k~ep the publication going indefinitely. The last_number was onc of the best | ever published. . AUTOMOBILE CARTEL | URGED BY FRENCHMAN | he Assotfated Presy. . EW YORK, October 17—An inter- natfonal “cartel,” under which the lead- ing antomobile makers of five coun- tries would agree to limit their output on 4 prearranged percentage basis, was | proposed yesterday by Andre Citroen, Prench antomobile manufacturer. Hi¢ plan announced following a lunchéon given him by directors of the National Automobile Chamber of Com- merce, contemplates ““a‘ binding agree- ment which would prevent competition in such .severe. form that manufac- turers.would suffer.’ “Such ‘a program,” M. Citroen said, *would felieve the fifidustry of many bad features it now possesses and would allpw production more along the lines of actugl supply for slemand rather than probability of an unprofitable saturation of the markets.” The five countries which produce ‘most of the world's. automobiles are the United States, with 80 per cent of the total world ‘output; France, England, Canada and Germany. LGt o Rediscount Rate Reduced. ©SLO, Norway, October 17 (#).—The National Bank of Norway reduced its discount rate today from 7 per cent to 6 per cént. THE EVENING, STAR, WASHINGTON, D. C., - Stoeks sold In 100-share lots except those desigmated by letter “s.” Stock and Bales— N 167% 102 195 124% 185% Low. Dividend Rate. 214 Abitibl Pwr & Paper, 7 Adams Express (1).. 2214 Adams Miilis (2).... 10 Addressograph (1).. 52 Alr Reduction(t4%). 7 Alaska Juneau (40c) 3% Allegany Cor} 8 Alleg Cp pf $30 Alleg Cp pf x 330 w.. Allled Ch&Dye (n6) . Alpha Port Cemt (1) 3 Amerada Corp (2 % Am Brake Shoe( Am Can Co (5)..... Am Car & Fdry (1).. Am Chicle (13) Am Colortypi ‘Am Comel Alcohol. .. Am European Secur. Am & For Power.... Am & For Pwr 2d pf. 3 Am Haw St'ship (1). Am Home Prod 4.20. Am Tce (2) Am Interna b Am Locomotive (1). Am Lo'motive pf (7) Am Mch & Fdy 1.40., Am Metal C 0ucooenes Am Natural Gas pf.. 220 Am News (133%)...0 Am Pwr & Lt (31) Am Radiator (§0¢).. Am Republics. : Am Rolling Mills. ... Am Safety Razor (5) Am Smltg&Ref (1%) ‘Am Snuff of (6) Am Solv & Chemical. Am Steel Found (1).. Am Steel Fdry pf(7) Am Sugar Ref (5). Am Sumatra Tob. Am Tel & Telex (9 Am Tobacco B (16).. Am Water Wks (3).. Am Wat Wks cta(3). Am Woolen Co...... Am Woolen Co pf. 4« Am Zinc & T.ead. Anaconda Copper.... Archer Danfel Mid. . Armour of Del pt (1) Armour of 111 (A)... Associated Dry G (1) Atch To&S Fe (10). . Atlantic Refining (1) Atlas Powder (4).... 5 Atlas Stores (1). 8415 Auburn Auto (£4 215 Aviation Corp (Del). 6% Baldwin Locomotive 36 Baldwin Loco pf (1). 28 Balto & Ohlo4)...... 4815 Balto & Ohlo pf (4).. 87 Bang & Aroos pf (7). i Barker Br Barnsdall Cors Bayuk Cigar (3)... Bayuk Cig 18t pf (1) Beatrice Cream (4).. Beech-Nut Pkg (3).. Bendix Aviation (1). Best & Co (2) B Bethlehem Steel (2). Bethlehem Stl pf (7) Bohn Alumn (1%).. Borden Co (k3)..... Borg Warner (1) Briggs Mfe (11%) Bklvn-Man Tran (4). Brunsw-Balks. . Bucyrus-Erfe cv pf.. Bucyrus pf (1)...... Budd (EG) Mfg pf.. Budd Wheel (1). Bulova Watch (80 Burronsh A M(t13% Bush Term deb (7). . Butte Copper & Zinc. Byers (A M) Co Calif Packinz (2). Canada Dry G A (3). Canadian Pacific 1% . Cannon Mills (1.60). Case (J 1) Co Cavanaugh-Dobbs. Cent Aguirre (134) 4 Century Rib Mills Cerro de Pasco (1 Ches & Ohlo (2%4)... Chesapeake Corp(3). Chi Great Western. . Chi Great Westn pf.. Chi Mil StP & Pac. Chi Mil StP & Pac pf. Chi & Northwest (4). Chi Pneu Tool. 3 Chi Pneu Tool pf Chicago R 1&Pacifie. Chi R1& Pac pf (T). Childs Company..... Chrysler Corp (1). City Stores. . Coca-Cola (17%).... Colgate-Pal-P (2%). Collins & Alkman. ... Collins & Atk pf (7 Col Gas&El pf A (8). Columb Carbon (4).. Comm Credit (1.60).. Comcl Credit A (3).. Comel Inv Truat (2). 9% Comel Solvents (1).. 415 Comwlth&Sou (40¢). 674 Congolm-Nairn (1).. 61 ConsolGasN Y (4).. 93 Consol Gas NY pt(5) 914 Consol Laundries(1) 20 ConsolRwys pf (6).. 21 Container Corp (A). Container Corp (B).. 4 Contl Baking (A).... Contl Baking (B). Contl Baking pt (3 Contl Can (2%). Cont Insur (2.40) Contl Motors Cont] Oil (Del) ‘orn Products (3). « Coty Inc..... Crucible Steel. Cuba Cane Product Cudahy Packing (4). Cushmans pf (8).... Curtiss Wright...... Curtis Wright (A) Cutler Hammer. 93 Delaware & Hud (9). 2915 Del Lack & Wn (2) 112 Detroit Edison (8 12% Diamond Match (1). 22% Diamond Mtch pf 1% Dome Mines (1)..... Domn Stores (1.20).. 21 Dresser (SR) (A)... 42% Drug Corp (4). 53% Dupont de Nem 108ts Du Pont de N pf(6) 93 stman Kodak (18) stman Kod pf (6). iaton Axle & Spr(1). Eftington-Schild pf. Elec Auto Lite (4).. Elec&Musical Instru Elec Pwr & Lt (1). ¢ Pwr & Lt pf(6). Slec Pwr & Lt pf (1) lec Storage Bat (4). & Pub Svc (1.60).. “ederal Sc Fed Wat Sve A(1.20 Firestone T & R (1). coster Wheeler (1).. Foundation Co...... Fourth Nat Inv mb5c Fox Film (A) (2%} Freenort-Tex (3) Samewell Co (3 * Gardner Motor. 3815 Gen Am Tank Ca: 9% Gen Asphalt (2). 17 Gen Cabl 25 Gen Ci; 24% Gen Electric (1. 11'x Gen Elec spec (60¢) . 3014 Gen Food Corp (3).. 21, Gen Gas&El A (e30¢) 32 Gen Mills (3).. 94 Gen Mills pf (6). 2214 Gen Motors (3) 85 Gen Motors pf (5)... 4% Gen Public Service 221, Gen Ry Signal (5). 1% Gen Realty & Util, 17 Gen Realty & Util 1% Gen Theatre Equip 9% Gillette Saf Ragor. 415 Glidden Co...... 48 Glidden Co pr pf (7). 3% Gobel (Adolf). .. 18 Gold Dust (2%)..... 5 Goodrich (BF)..... 16 Goodyear T& R (3). 3% Gotham Silk Hoslery 1 Gould Coupler...... 1% Graham-Paig 5% Granby Con Mj, 315 Grand Silver ). res. Add 00. 1 10 1 > - pneaRaR A D a5~ 104 @ Zoawna 83 1 108 1508 10 508 sEesSosse $52 T+l 14000001+ +11 LhA L FEFEETE ~—1931— R 12315 45 64 7 18 24% 3ty 26 29% 153 1% 1034 194 613 5814 16% 6915 547s 6915 261 131% Stock and Bales— Low. Dividend Rate. 25% Grant (WT) (1). 20 Great Northn pf(4 12 Great Northn Ore(2) 80% Great Wn Sug pf (7). 10 1% Grigsby Grunow.... 3 14% Gulf Mobile&Nor pf. 2613 Hahn Dpt St pf(6%) 11 Hall (WF) (1.20).... 71% Hershey Choc (5). 17 Holland Furn (12%) 3 Houdallle Hershey . . 521% Househld Fin pf 4.20. 19 Houston Oil. 4 Houston Oil (new) 124 Howe Sound (2).... 7% Hudson Motor (1)..« 3% Hupp Motors. . 23% Illinots Central (4) 5 Illinois Cent 11 (4) 21 45 Insp! Insuranshares Del A Insur Shr(Md) (40c). 4 Interboro Rap Trans Interlake Iron...... Int Bus Machine(né) Int Cerpent (4)u.eses Int Combustion Int Combustion pf... Int Harvester (23). Int Harvester pf (7). Int Hydro E1 A (e2). Int Match pf (4). % Int Nick of Can (4! Int Nick Can pf (7). Int Paper pf. 4 Int Paper & Pw Int Printing Ink. 254 Int Salt (3).. 4, Int Tel & Tel (1). 95 1sland Creek pf (6) 31 Johns-Manville (3).. 99 Jones & Laugh pf(7) B1c Kansas City Southn. 3315 Kan City Sou pf (4). 1, Karstadt (Rudolph) . 8 K’'mann Dept Stra(1) 815 Kayser (J) & Co (1). A Kelly-Spring Tire... bix Kelly-Spr T 8% pf. . 3is Kelsey-Hayes Wheel 6 Kelvinator Corp. .. 20 Kendall Co pf (6) 10% Kennecott Copper(1) 19 Kresge (S §) (1.60) 514 Kreuger & Toll 1.61). 18 Kroger Grocery (1). 40'4 Lambert Co (8)..... 18 Leh Val Coal pf (3) 17% Lehigh Valley R R, 35 Lehman Corp (3) 181 Lehn & Fink (3). 7 Libbey Owens Glas: 40 Ligg & Myers B (16 20 Link Belt (1.60) 15% Liquid Carbonic 27% Loew’s Inc (3). 1, 1 McCrory (B) (2).. 383 McKeesport T P (4) T's McKesson & Rob (1), 19 McKes&Rob pf(31%) 2'4 McLellan Stores. ... 15% MackTrucks (2).... 2 Madison Sq Garden 2'% Manati Sugar pf.... 6 Manhattant Shirt(1) 9% ManhatElev mod gtd 13 Maracaibo Oil Exp. . 12!x Marine Midld (1.20). 11% Marlin-Rockwell (2) 13% Marshall Fleld (214) Mathieson Alkil (2) « May Dept Strs (2%) Maytag Co 1st pf (6) Miami Copper. Mid Continent Petm. Midland Steel pf (8). Mo Kan & Texa Mo Kan & Tex p: Missourd Pacific Missouri Pac pt (5) Montgomery Ward. . Morrell (J) & Co (3) . Mother Lode. .. Motor Wheel (1), Nat Supply pf (7)... at Surety (2). ev Copper (80¢) Newport Co (1) Newton Steel. . Noranda Mines. Nort & Westn (112). Norf & Westn pf (4) 194 Northern Pacific 3). . 613 Ohto O, ... 15, Omnibus Corp - 201 Otig Elevator (2%) 3% OIS Steel. . . 16 Otis Steel prpf. 2995 Pacific Gas & El (2). 35 Pacific Lighting (3). 914 Pacific Mill 100% Pacific Tel&Teleg(7) 4 Packard Motor (40¢) 10% Paramt-P(m1.62 Pathe Exchange Penick & Ford (1)... Penney (J C) (2.40). Penney(JC) pf A (6) Penn Railroad (3)... Peoples Gas(Chi) (8) Pere Marquette pf. .. Pere Marquette pr pf Pet Milk Co. Petm Corp o Phelps Dodge Co. Phila Co 6% pf (3). 80 Phila Conew (6).... 3% Phila&Reading C& I 3715 Bhillips-Jones pf (7) 9 Phillp Morris&Co(1) 4% Phillips Petroleum. . 75 Plerce Fetroleum 2615 Pirelll (A) (m3.13) 6 PittsCoal....ces Pitts Coal pf. Pitts Steel pf........ Pitts Terminal Coal. Poor & Co (B) Port R Am Tc Postal Tel&Cable pf Prairie Oil & Ga ipe Lin Car Public Sve NJ(3.40). Public Sve NJ pf (6) Pullman Corp (4) - [PEPTCT TN PSSOV~ PP o 5 12% 10% 25 Radlo-Keith-Orph A Raybestos Man (1.60) Remington-Rand. .. Republic Steel. Republic Steel pf Reynolds Tob B (3). Rio Grande Ofl. Purit o,®» 91, St Joseph Lead (1). 6'5 StL-San Francisco.. 713 StL-San Fran pf(6). 3814 Scott Paper (31.40). % Seaboard Air Line 513 Seaboard Ofl........ 81 Sears Roebuck (2%). 1; Seneca Copper. 3% Servel Inc..... 4 Sharon Steel Hoop. . 11 Shattuck(FG)(t1%) 31 Shell Unfon OIl.. 238, Shell Union Oll pf... 514 Sinclair Consol Oil.. 3% Skelly Ofl....00vee 12 Sloss-Sheff Steel pf. % Snider Packing. 12'4 Socony-Vacuum 1.60 49% Solv Am pf ww(5%) 28%, Southn Cal Ed (2)... (Continued on Page, 14.) E Net. Add 00. High. Low. Close. Chge. 2 32 32 32 —1% + % + % +2 - % + % +1 -1 e 4 s EER EFE FaS 1 © 7 L o = 16% 105 +10 32% — % 101 + + % 2 % s 1n " Y +1% SATURDAY, ISTOCKS HOLD FIRM INPROFIT TAKING Market Tone Steadyat Week End Session—Trade Re- ports Watched. 3 BY GEORGE T. HUGHES. Special Dispatch to The Star. NEW YORK, October 17.—While quotations were not much changed, the stock market at the week end had a confident appearance. Prices were & point or two higher during the first hour, but that was followed by realiz- ing and a drift back to Friday's close. On the other hand, there was no weak- ness anywhere and stocks were well taken on the reaction. Steel Watched. Close attention was paid today to the course of United States Steel on the theory that this old-time leader would again indicate the trend of the general market. So far the indications of busi- ness improvement have been confined to retail and distributing organizations, with the heavy industries operating around their low point of the depres- sion. ‘There has been no hint of any change in this respect, for while Wed- nesday’s trade reviews were hopeful for the fron and steel outlook, the rate of production showed no gain. United States Steel today, however, was very steady around the best of the current recovery. The street was com- ing to the belief tha® the next dividend will be $1, as was the last one. Mean- while there is a large short interest in the stock, and if next week's trade re- ports are at all optimistic, this short interest could easily be driven to cover. General Motors was another stock that acted as though it was under ac- cumulation. Estimates of third quar- ter earnings were_being revised down- ward, but that seemed to have been discounted in the price of the stock. Standard Oil of New Jersey Was an- other industrial in which offerings were easily absorbed. For the ofl industry it is said that inventory lésses have all been taken, and, while profits are modest, last quarter reports ought to make & better showing. The railroad shares at one time during the session were actually strong, but they sold off also under profit taking. Rails in Demand. Buying of the rails was based pri- marily on hope of a favorable rate de- cision and of a Washington move toward strengthening the position of the railway bonds. In this case also regardless of these somewhat artifictal aids to recovery. speculative interests were not overlooking the possibility of increased car loadings Among the few features of the day was a sharp advance in National Lead In small floating supply, it took only a comparatively light amount of buying to put the stock up 6 points. Amer- jcan Sugar Refining, which was up 4 points Friday, pushed ahead again to- day and several other generally inac- tive issues gained Outside the stock market interest at- tached to the sharp advance in cot- ton. The wheat market started in higher also. This hardening of com- modities is increasing confidence in the future of securities and, therefore, the fact that for the first time in 12 weeks advances outnumbered declines in Dun's list of wholesale commodities Was pointed to as justification for a con- structive attitude toward stocks by the increasing_speculative interests turning to the bull side. PRICES FOR VIRGINIA TOBACCO IRREGULAR By the Associatell Press SOUTH BOSTON, Va, October 17.— Medium grade or: e leaf tobacco here vesterday averaged about the same prices &s on Thursday. Fair grade orange leaf averaged about 20 per cent lower prices, and low grade orange leaf averaged about 40 per cent higher prices than on Thursday. First quality orange lugs averaged about the same prices, and second qual- ity orange lugs averaged about 20 per cent higher prices than on Thursday. Medium grade orange lugs averaged about the same prices and low grade lugs averaged lower prices than on Thursday. ‘The lemon side of second quality lugs averaged about the same prices as the orange side, while third quality lemon lugs averaged about 30 per cent higher prices than the orange sld\ Offerings were light in volume and averaged lower in quality with medium to common orange and mahogany leaf and lugs predominating. A very small percentage of better leaf and lug grades was offered. At Petersburg, Va., offer- ings were light in volume and consisted chiefly of medium grades orange leaf and lugs. Medium and common grades showed a slight decline in prices while good and better grades averaged about the same prices. Orange leaf—Fourth quality (B4F), 10.30; fifth quality (B5F), 5.70; sixth quality (B6F). 240. Orange lugs— First quality, (X1F), 18.70; second qual- ity (X2F), 15.80: third quality (X3F), 7.30; fourth quality (X4F), 2.60. LARGER FUEL. OIL SALES REPORTED THAN IN 1930 Special Dispatch to The Star. NEW YORK, October 17.—The sub- sidiary companies of National Service Cos. report sales of fuel oils for the Year ending September 30, 1931, at 20,- 819,427 gallons, an increase of 10,732,- 000 gallons over the previous 12 months. The National Service Cos.’ organiza- tion distributes at retail and wholesale products of several larger oil companies to 180 of the important cities and towns of Westchester County, N. Y., and the New England States from Bridgeport, Conn,, to Portland, Me. Money to Loah Secured by first deed of trust 1 Prevalling Interest and commussions : Joseph 1. Weller 0wt & Trant SINCE 1899 MONEY TO LOAN at 5 and 6°% Before Placing or mn'e'-‘v‘l‘n':“!ur Ist and 2d Trust Consult WELCH Realtor Loan Specialist 13th_and N. ¥. Ave. N.W. (Natlonal 'savings’ & Trast Co. Natlonal 4346 Blds.) First Mortgage Loans Lowest Rates of Interest and Commission Thomas J. Fisher & Company, Inc. National Organization desires to sublease its spacious quarters in modern, centrally located office building. Greatly reduced rental. Address Box 210-H Star Office OCTOBER 17, 1931, FINANCIAL RAISING OF DISCOUNT RATE HAS WEAKENED BOND MARKET Increase Has Also Put!New York Charges in Line With Those of Foreign Money Centers. BY CHARLES F. SPEARE. Speclal Dispatch to The Star. NEW _YORK, October 17.—The abrupt change by the Federal Reserve from a policy of minimum rediscount rates to one that recognizes the con- dition of high money prevalent throughout Europe was welcomed in financial circles. What ever may be its purpose it brings into line the re- discount rates of the present money center of the world with those of its competitors who, if they must have American gold and must draw down their balances here, cannot do it as great advantage in such transactions as they could a fortnight ago. How- ever, it is playing havoc with the mar- ket for Government bonds and high- grade corporation securities. Since England went off the gold basis on September 21, there have been striking changes in the Federal Reserve gllflfln. ‘Taking the statements of ptember 16 and October 14, a com- parison shows a reduction in the gold with Federal Reserve agents in that period from $2,225,948,000 to $1,653,- 575,000, Decline in Reserves. Total gold reserves have declined from $3,470,000,000 to $2,836,000,000. Federal Reserve notes in actual circula- tion have increased from $2,010,322,000 to $2,321,817,000. Pinally the ratio of total reserves to deposits has dropped from 78.4 per cent to 61.8 per cent and L4 sociation banks in the past five months when they have been large balances at that figure while paying their depositors from 314 to 4, and in some instanccs 4% per cent. are now to recelve 115 per eent. is may lead them to increase their d its and make smaller purchases of term government and municipal securities, of which they have been Tholders, sacrificing yield on their investments to the condition of extreme liquidity. Tt would seem as though every money policy that is put into effect to help the bond market actually hurts it. The cheap-money policy of the Federal Re- serve, which was primarily introduced to stimulate bond buying, proved a fail- ure. Prime Issues Affected. ‘The present policy of change has demoralized the market for United States Government issues, as well as for the highest grade of railroad and public utility obligations. Yesterday the last issue of Treasury 3 per cent bonds, which sold at par a month ago, were offered at a discount of 7 points. 3l per cent loan of last Summer, which was many times oversubscribed and sold as high as 101.21, was down to 9315, Fourth Liberty 4'4s have dropped now compares with about 81 per cent | N€&rly 3 points since the rediscount rate at_this date a year ago. Nearly $650,000,000 gold has gone from the Federal Reserve. more that has been shipment. 000,000 shipped this week approxi- | Smallest amount of depreciation mately $114,000,000 was assigned to | the Bank of France. Gold 15 not going where it is needed. It is simply being | driven out of the world's largest de- | pository into the one next in size. Consequently, the redistribution of the gold supply, which has been held to be one of the policies necessary to an improvement in international condi- tions, has so far failed. Belgium, Hol- land and Germany have been getting lhellr hmlle. Although it has been frequen stated that the United States co\?lfl Io‘g $1,000,000,000 of its gold, the outflow has assumed such proportions in such a short time that today there is a different attitude toward the gold move- ment than that expressed two weeks ago. Although this is not officially ex- was raised from 1'; to 3'> per cent. Banks have been filling their port- | follos with Government obligations on Th | o Cmarke o | the idea that these were ot only the Of the total of about $129,- | Safest of all paper, but subject to_the Now they are witnessing larger daily shrink- ages in the newest of the Government long-term loans than in some of their holdings of corporation obligations. (Copyright, 1931.) Business Failures Fewer. By the Assoctated Press. Business fallures showed a declining trend during the week ended October 10, as their change the Commerce Department. index that follows the average is given for comparable weeks, based on repre- fi)xgtlng the 1923-1925 weekly average as ‘Week ended October 10, 127.3; pre- ;zil%u; week, 133.4; same week last year, pressed. there is an intimation of it in the advances in the rediscount rate of | the Federal Reserve Bank of New York, first from 1% to 2 per cent and then | from 2'. to 3!. per cent. It is not| reasonable to believe that these in- creases would have been made at the same time that the market for govern- | ment securities was jeopardized as it has been, if no concern had been felt over the volume of gold exports. Rate on Deposit Raised. ‘The sequel of the increase in the Ped- | eral Reserve rediscount rate to 3'. per | cent, again to be followed by banks in | other central reserve districts, is the | lifting of interest rates on the deposits | of member banks in the New York | Clearing House Association. So far this | ff has been moderat>. It is doubtful if | the advance is sufficlent to effect much caange in the attitude of depositors, or 1o stop hoarding. On demand deposits, which had been receiving 13 of 1 per Resérve District No. 5, REPORT OF CONDITION OF THE Morris Plan Bank of Distributor Wanted A Virginia corporation desires a distributor for high class product for the District of Columbia. Deal will require a man of ability and financially responsible. Address Box 199-K, Star Office FIERSST PLAY LEAST Washington ington. in the District of Columb! close of business on September RESOURCES. and discounts .. .$1,830,077.17 deposits assigned as teral to loans . 659,700.44 1.170.367.73 | } er bonds. stocks, and se. ities owned o 2500000 37.473.56: " fur- n se. niture and fixtures, $6.888.39 _14,36195 . Cash and due from banks 253/428.36 checks and other | stems . 360.91 Other assets . 1156365 | Total . $1,475,082.60 LIABILITIES Capital stock paid in.... Surplus $200.000.00 S 50.000.00 17, Undivided, profiis et €9.143.15 29.957.45 L tr bank, do solemniy Subscribed ‘and sworn to before me thi: 6th_day of October. 1931. (seal) FRANCIS U. L CRILLEY. otary Public. Correct—Attest: BERTRAM CHESTERMAN, EDWIN A MOOERS. GEORGE C. SHINN. Directors our Ower a Third of a Century Without a the 6% | Loss May be | from $250 ¥+ A—13 BUSINESS CHEERED BY CREDIT PLANS Hoover Action Declared Con- structive Step by Standard Statistics Company. Special Dispatch to The Btar. the nouncement of President Hoover's plans for reli the commercial Lo situation,” giving further aid to farm loan banks and urban real estate, and more vigorously forcing the issue with foreign debts, are constructive devel- opments of transcending importance, says the Standard Statistics Co. of New York, in a current survey of the business situation. The survey con- tinues, in part, as follows: ‘At last we have concrete evidence that we may look to Washington and ‘Wall Street alike for the constructive, aggressive leadership that has thus far been absent. The President'’s an- nouncements have not solved the world’s economic problems, nor this country's ecopomic problems. Ahead of us there lie periods of difficulty, hes- itation, doubts, perhaps even near- despair. But the plans call for the centralization of effort toward a com- mon end. If these particular plans should fail, out of them should come others which should prove workable. ‘These plans appear basically sound. At the moment, they appear to have & better than even chance of being worked out, in one way or another— if not entirely, then at least in some of thel‘l; ‘:ore uulmlnl T 5 - lous avorable developments seem quite likely to appear during th near term future. - i “Domestic business is thoroughly de- flated, and is unlikely to dranup‘ n'yntly below the current very low level. Ul- timate improvement is inevitable, al- though no one knows how long it will be delayed.” The COMMERCIAL NATIONAL BANK 14th and G Sireets Banking in All of Its Phases 'y on Hand to Lean on M First Deed of Trus 6% Interest 643 Indiana Ave. N.W. MORTGAGE SAFE WITH AT SOME OF YOUR INVESTMENT MONEY Even if you are speculatively in- clined, it is the-better part of good judgment to place a portion of your investment money in first mort- gages that are as nearly loss-proof as anything can be. In the case of 6% FIRST MORTGAGES your principal will be secured by Washington property have conservatively appraised, and interest will throughout the term of the loan. which we not vary purchased in amounts up. B. F. SAUL CO. 925 15th St. N.V Lincoln National Bank of Washington, D. C. (U. S. Government Depositary) CONDENSED STATEMENT Condition of This Bank as Shown by Report to the Comptroller of the Currency at the Close of Business Loans and Discounts Bonds Owned: U. S. Bonds Other Bonds Banking Houses and Real Estate (Purchased for Expansion of Banking Houses). .. Other Resources. U. S. Redemption Fu September 29, 1931 RESOURCES .. $3,622,464.95 o .$1,353,512.38 ©71,103,866.30 Equipment .. ... ovsessvscoss n R Cash and Reserve.......c. 00 Capital Stock SUBPIUS: < o0t v s0as LIABILITIES 2457,378.68 .. 36253971 240171.76 15.234.60 6,000.00 1,372,596.24 $8,076,385.94 ¥ 100500 UNAivided PYORES Y svesrss vennonsus soessunsosssne: 7085346 Reserve Funds (For Circulation Other Liabilities DEPOSITS Interest, Contingencies, etc.)... $1,179,833.46 e 23,175.33 .. 113,400.00 e 393.72 L. 6,759,583.43 $8,076,385.94 Lincoln National Bank 7th and D Sts. 17th and H Sts.