Evening Star Newspaper, October 25, 1931, Page 63

News of Markets Pages 1 to 4 FINANCIAL AND CLASSIFIED he Sunday Stav WASHINGTON LEADS IN RAISING MONEY FOR BANK CREDITS District Is First Large City { to Announce Full Quota Raised. [TOTAL SUBSCRIPTIONS { ARE NEARLY $4,000,000 Local Unit Will Soon Be Ready to Act on Loan Applica- tions. BY EDWARD C. STONE. Local bankers were elated yesterday over reports that the unit of the Na- tional Credit Corporation formed here | Priday night was the first large city association in the country to announce 300 per cent subscription to the huge | credit pool being raised to strengthen the banking situation in sections where funds are needed for use until frozen edits can be thawed out. Not only did every bank in the Capital join in the national movement, but each one :ubsc bed as large a sum as permitted y law. ‘Washington banks subscribed almost 84,000,000 to the cause, to be exact #3,939,262. Such quick action is bound o have a stimulating effect on other sections of the country now organizing their associations., It is also considered worth more than passing comment that while the full quotas were subscribed, wet the Capital will probably make less use of the national fund than any other city in the country. The big fund raised here will be almost wholly borrowed elsewhere. In a few days the local unit of the National Credit Corporation will be ready to receive and act upon applica- tions for funds. The nine local bank | presdents composing the Loan Com- mittee of the association, have already nized by the election of President H. H. McKee of the National Capital Bank as chairman. He is also chair- -man of the Clearing House Association, ‘which in joint session with the District Bankers' Association, organized the District of Columbia Unit, after much hard preliminary work by Robert V. 1t was intimated vesterdsy that sich ‘made elsewhere B ohien senerve disteice thar the District as a whole may also be ahead @f the other 11 in completing all unit arganizations. Auditor’s Section Opens Season. ‘The auditor's xtlon of the District Bankers' Association held its first din- mer meeting of the year at the Press Club Thursday evening, with Arthur J. %inn, controller of the Federal-Ameri- can National Bank & Trust Co., pre- $lding as the new chairman. The enairman outlined the plans for the Fear's work and announced a tentative m. John N. Higgins, of the Fed- eral-American Bank’s auditing depart: mment. presented a paper on “The Na- mm:i' h‘l’(’;lfll - 'Corpa.‘l;luon." which provs y informative. Tt has been arranged so that mor2 employes of the auditing departments of the local banks may attend the| section meetings this year if they care to do so. The attendance at the first meeting indicated that many more) bankers are planning to take part in the section’s activities during the com- ing months. Trust Sharcholders Increase. “The quarterly report of Massachusetts Envestment Trust has been received by A. S. Goulden & Co., investment bank- ers. It shows that the number of share- holders and shares outstanding have rontinued to grow ever since the de- pression started two years ago. On October 20, when the last quar- terly dividend was paid, there was also sannounced by Massachusetts Investors’ A *Trust the absorption of another trust, Awith assets of about $4,600,000, 50 per jecent of which was in cash. This ab- sorption will therefore give Massachu- setts Investors' Trust an outstanding paid-in capital of about $30,000,000. The report states that, aside from emall cyrrent bills. the trust has no debts or liabilities. The securities in the portfolio are paid for and no money | has been borrowed. Miller Orders at New Peak. The Board of Directors of the Miller *Train Control Corporation held a regu- Jar meeting in the company's office atl Staunton, Va., Friday. Vice President and General Manager Miller reported unusually good business for the past quarter. It was reported that the signal lights at Massachusetts and Wisconsin ave- nues, in Washington, have been com- pleted and are giving satisfaction. This is the second installation in Washing- ton, the other being at Wisconsin ave- nue and Macomb street Heard in Financial District. Probably no person was more shocked over the tragic death of Har n Nes- bit, the Pittsburgh banker the other day on his way 1, thar Peter A. Drury, former president of the Merchants' Bank & Trust Co. They Were the closest of friends, and when Mr. Harrison was connected with the Treasury Department as a bank exam- iner, they lived in the same block Harrison made a wonderful record in building up the Bank of Pittsburgh, only | 1o lose it in the crash which claimed so | many other banks. The Federal Reserve Board announces that the Kansas City Reserve Bank has raised its rediscount rate from 3 to 31-3 per cent. The Richmond Bank's 4 per cent rate is still the highest in the ccuntry It is believed that the higher redis- | count rate now prevailing in most all the Federal Reserve districts will bene- fit the banks and at the same time place no extra burden on business Yesterday's Exchange Session. On the Washington Stock Exchange yesterday Potomac Electric Consolidated Bs were in the best demand in the bond division. Stocks were quiet, selling sround recent levels. The day's sales National Mtge. & Inv. p{fd.—100 at 4. Peoples Drug Stores pfd.—3 at 90 Lanston*Monotype—I at 76 Washington Gas 6 “B'—$1,000 at 102V, Washington Gas 6s “A" 1003, Mergenthaler Linotype—S5 at 65, 5 at 65 American Security & Trust Co—2 at —$1,000 at 291. ‘Washington Railway & Elec. pfd.—2 at 4. Potomac Electric 6. pfd.—3 at 103!, Potomac Electric Cons. 55—$1.000 at 101, $1,000 at 101, $1,000 at 101, $1,000 at 101 The unlisted securities were called off \SALES GAI {10 the weekly Mr. | { ward WASHINGTON, D. C, SUNDAY }\iORI\'I.\'G. OCTOBER 25, 1931 Classified Ads Pages 5 to 12 Rail Pool Tried in France Interstate Commerce Commission’s Plan to Rehabi tate U. S. Carriers Is Similar to Arrangement Made Ten Years Ago at Paris. BY DR. MAX WINKLER. Special Dispatch to The Star. NEW YORK, October 24—The re-| cent decision of the Interstate Com- | merce Commission in reply to the re. quest of the United States transporta- | tion systems for an increase in freight rates includes, inter alia, the sugges- | jon that increased revenues resulting rom the proposed advance in rates should be pooled and utilized to assist the weaker roads, primarily in order to enable them to meet their fixed charges. A somewhat similar arrangement was put into effect in France almost exactly | 10 years ago and, since many French railway issues are owned by United | States inwestors, a review of the French rallway act at this time should be of interest. i ’ By a law passed on October 29, 1921, the relations between the railroads of France and the government were modi- | fled in many respects. This law, in | some of its provisions, resembles 'the | United States transportation act of | 1920. It provides for the creation of a central organization representing all the | railroads. and is designed to facilitate | co-operation between the roads, as well | as between the railroads and the state, for the purpose of effecting a financial solidarity which will assure equilibrium or balance between the revenues from traffic and the expenses and charges of the roads. Scope of Authority. ‘The central organization is known as the “Conseil Superieur des Chemins de Fer" supreme council of railways). ‘This council is charged with au- thority over the raflroads in all such matters as the construction of new lines, electrification programs, the ac- quisition of rolling stock and the allo- cation and use of the same, regulation of train service and oiier matters in connection with the operation of the roads. It also acts especially in fixing rates and charges for passenger and freight traffic, subject to the approval in all cases of the minister of public works A joint fund is created, the revenucs of which are derived from the surp! earnings of the roads themselves. TI surplus is determined as follows: Each road shall pay out of its operating reve- nues its operating fixed charges (in- terest, amortization, etc.) and dividends on its capital stock, less any payments or_reimbursements from the state, the (Continued on Fourth Page) UPSWING INSTEEL PRODUCTION SEEN Trade Circles Expect In-i creased Activity During | Next Few Weeks. t Special Dispatch to The Star. PITTSBURGH, October 24.—Of | course the steel trade is interested in its future, but it is not paying as much attention to that aspect as might be | supposed. It is very busy watching | costs minutely and it is considering the future from a different viewpoint than usual, paying more attention to the general business and financial sit- uation and less to the current flow akers feel they must watch every penny, and this means a great deal of work. In the first place, costs in general must be pared as much as possible, and in the second place costs must be considered in the particular light of orders being small individually, in most cases for very prompt ship- ment and in general coming in very irregularly. While there is no price competition, steel prices being the most | rigid in the whole history of the steel | market, there is what amounts to com- petition in the expedition with which orders are filled. Some of the economies now being in- troduced will be helpful when the steel industry becomes busy again, others will | be abandoned when the peculiar cir-| cumstances of the present disappear. Steel production in the Chicago dis- trict decreased 3 or 4 points this week, while the Youngstown district had a greater drop to below 20 per cent.| The Pittsburgh district has shown great | uniformity, holding approximately to a 25 per cent rate since early Septem- ber, while there is not much differ-| ence in operating rates of the individ- | ual producers. Total production of the | steel industry in September was at 28 per cent of capacity, while each of the last two weeks has averaged about 1 point drop, making 26 per cent a fair estimate for the week now ending The opinion expressed in some quar- |ters that there might be an increase steel oroduction in the next few weeks has gained ground, the argu- ment being that when there was ho Autumn increase there s correspond- ingly little or nothing to lose as the end of the year is approached, while in four individual items there are pros- pects of more activity, in steel for the automobile industry, the farm im- plement industry and the tin plate in- dustry and in Tails. There has been almost no rail production lately and some releases on old orders are fully expected for rolling to begin about the middle of next month. The tin plate industry has just made a small start making stock in anticipation of next season’s requirements, this merely bal- ancing a seasonal decrease in current requirements (Copyri 1931 NOTED ,N.‘ BY WEEKLY SURVEY Steady Improvement Since First of Month Reported by Fairchild Publications By the Associated Press NEW YORK, October 24 —Retail | sales throughout the country showed a further slight improvement, according survey by the Fairchild Sales have improved since the beginning of the month. October sales to date make a slightly more favorable showing with 1830, than September, as compared with September, 1930 October sales to date hardly show a decrease greater than 7'z to 10 per cent below October, 1930, as compared with decline of 14 per cent in September compared with September, 1930 There has been an actual increase in the number of units sold in October to date above a year ago, due to the lower retail prices Retail prices are still tending down- The index as of November 1 chould show a new low in the present deflation. TOBACCO PRICES LOWER | ON FARMVILLE MARKET By the Associated Press. FARMVILLE, N. C. October 24— (United States Department of Agri- culture) —With Tobacco offerings on the Farmville, Smithfield, Washington and Willlamston markets heavy in vol- ume on Monday and lighter the rest of the week, except on Friday, prices per grade averaged slightly lower this week than last. Some leaf, however, sold as high as $70 per 100 pounds. The official grading service of the Federal and State Departments of Agriculture sa:d offerings consisted of about 84 per cent leaf grades, 4 per cent cutters and 12 per cent lugs, which included about 4 per cent lemon sides, 40 per cent orange, 3 per cent ma- hogany, 1 per cent mixed and 12 per cent green. Offerings this week were better in Fublications. steadily during the session, but no price changes figures of importance were noted on Clearing House for Saturdsy, $3115,175.85. quality than earlier in the season. There was not a sufficlent quantity of the best grades, however, to establish an average. Loan Chairman LOCAL BANKERS SUPPORT BIG CREDIT MOVE. H. H. McKEE, President of the National Capital Bank, who has been elected head of the com mittee directing the District of Colum: | bia unit of the National Credit Cor- poration, formed to handle the immense bank pool teing raised to strengthen! economic conditions. Mr. McKee is chairman of the Washington Clearing | House Association. The local banks have joined the drive 100 per cent strong, subscribing $3,939.262. 'ORDERS FOR LUMBER EXCEED PRODUCTION Gain in Sales Puts Figure 2 Per Cent Above the Cut. With no marked change in the pro- duction level, lumber orders rallied irom the slightly unfavorable ratio of the previous week and were approx- imately 2 per .cent above the cut during the week ended October 17, it is in- dicated in telegraphic reports from 811 leading hardwood ‘and softwood mills to the National Lumber Manufacturers' Association. Shipments of these mills were 6 per cent above their production, which amounted to 173,869,000 feet for the week. A week earlier 834 mills re- ported orders 3 per cent below and shipments 9 per cent above a combined production of 175,799,000 feet. Com- parison by identical mill figures for the latest week with the equivalent period a year ago shows—For softwoods, 464 mills, production 31 per cent less, hipments 29 per cent less and orders 34 per cent less than for the week in 1930; for hardwoods, 217 mills, pro- cuction 35 per cent less, shipments 17 per cent less and orders 6 per cent under the volume for the week a year Lumber orders reported for the week ended October 17, 1931, by 575 soft- wood mills totaled 155,105,000 feet, or 2 per cent below the production of the same mills. Shipments as reported for the same week were 163,401,000 feet, or 3 per cent above production. Pro- duction was 158,387,000 feet. Reports from 257 hardwood mills give new business as 21,677,000 feet. or 40 per cent above production. Shipments as reported for the same week were 20591.090 feet, or 33 per cent above production, Production was 15,482,000 Teet Reports from 490 softwood mills give unfilled orders of 518,459,000 feet on October 17, 1931, or the equivalent of 11 days' production. This is based upon production of latest calendar year 300-day year—and may be compared with unfilied orders of 511 softwood mills on Qctober 18, 1930, of 776,720,- 000 feet, the equivalent of 15 days’ pro- duction. The 424 identical softwood mills re- port unfilled orders as 506,491,000 feet, the equivalent of 11 days' average production, on October 17, 1931, as compared with 739,058,000 feet, or the equivalent of 16 days’ production ihe same week a year ago. Last week's Droduction of 464 identical softwood mills was 146,316,000 feet, and a year ago it was 213,523,000 feet: shipments were respectively 150.533,000 feet and 0,816,000, and orders reccived 142.- 997,000 feet and 216,697.000. In the case of hardwoods 217 identical mills reportéd production last week and a vear ago 14,404,000 feet and 22,151,000; shipments, 18,842,000 feet and 22,669,- 000, and ' orders, 20,004,000 feet' and 21,335,000. UPTURN IS FORECAST FOR REST OF YEAR Special Dispatch to The Star. BOSTON, October 24.—The October upturn continues to be of seasonal pro- porticns, says the United Business Serv- ice. This improvement contrasts sharp- Iy with the poor record of September, in which the volume of trade was esti- mated to be 32 per cent below normal. Commodity prices are now firmer, car | loadings have shown an encouraging upturn and adjustments continue wnru( industry on a stronger basis. Unless foreign conditions become worse, the course of business during the remainder of the year should be slightly upward. for | STODKPRE GANS LAD T0 INPROVED BUSIESSOUTLOOK Securities Markets Respond Quickly to Signs of Re- viving Industry. RECOVERY IN COMMODITY VALUES HELD NOTABLE Liquidation on Exchange Dries Up as Better Sentiment Makes Appearance. BY CHARLES F. SPEARE. | Special Dispatch to The Star. | NEW YORK, October 24.—To have I behind us the period of hysteria, with its loss of faitk in institutions and in values, is a distinct gain even though there 'is little supporting evidence in the statistics of business and banking that a change for the better has oc- | curred. Sentiment has improved throughout the country. More confidence prevails abroad. Liquidation has been suspend- ed so that the markets for securities are higher than they were a week ago. In some of the prominent commodities sufficient recovery has occurred to raise { the present values of farm products $400,000,000 over those of early Oc- tober. The public that buys and sells stocks and bonds, that trades in staples, pro- duces and distributes raw materials and manufactured goods here and else- where throughout the world is now waiting for a consummation of the plans of an emergency character that have been recently pramulgated, as well as for the results of the momentous conference now taking place in Wash- ington between the President of the United States and the premier of the French Republic. Industry S While there have been many corpo- ration dividends cut or omitted this week, these have not applied to the shares of important companies. In general, they represent the effects of { losses in' operating income and in the income from investments of many com- panies that were formed during the boom period to make money easily from an advance in securities. The re- sources of the substantial American corporations have been affected com- paratively little. Some of them today, at the end'of two years of the severest losses in gross earnings ever experi- enced, show an extraordinary ratio be- tween assets and liabilities. This fact |is likely to persuade the directors of | the United States Steel Corporation next week to declare the regular divi- stock and to justify the management of the Bethlehem Steel Corporation in sharing some of its reserves with its stockholders. The General Motors Corporation has just presented a statement as.of Sep- tember 30 which shows cash, United States Goyernment and other market- able securities amounting to $264,000,- 000. This is an increase of $85,000,000 since the end of 1930 and is nearly $95,000,000 in excess of the present market value of General Motors 5 per cent preferred stock. The financial status of other representative corpora- tions, such as American Telephone & Telegraph, Atchison, Topeka & Santa Fe, Union Pacific, General Electric, Consolidated Gas of New York and Standard Oil of New Jersey, to name a | few, demonstrates the soundness of the industries which they represent and the | strength of the corporate structure of the country. It is significant, too, that in the midst of the most serious de- pression of the last half century there have been relatively few important mercantile failures, though the mortal- ity figure among what might be called the parasites on business have reached an astonishing total. Freight Rate Decision. The chief incident this week, and the one that has had most effect on se- curity prices, was the decision of the Interstate Commerce Commission in the 15 per cent freight rate case. This ar- rived at the end of a day conspicuous for the strength of railroad shares. It bluntly denied the request for an in- crease in tariffs and supported the com- missioners’ refusal by arguments that will be generally acceptable. It did not, however, as in other cases of the same sort, abandon the carriers in their hour of need, but made a novel proposal to which there was resistance in some quarters but subsequent acceptance of the spirit of the commission's sugges- tien. Public opinion strongly supports the commission in its denial of a rate in- crease that would have been eco- | nomically unsound and of doubtful value to those by 'whom it had been proposed. It also sustains this body in | the form of recommendation made. | This is in line with the times and, {in a sense, supplements the method by | which relief is to be extended by isn’nng banking institutions to those that are unable to carry the load which the depression has placed upon them. | It is never quite agreeable to a strong jand well managed corporation to dig | down into its pocket and assist a poorly | constituted competitor out of his diffi- culties. These are times, however, when the emergencies are similar to those in a war period. It is the common good, rather than individual stability and satisfaction, that must be consid- ered. In such circumstances it is ap- { parent that the letter of laws, as, for instance, the Sherman anti-trust, meas- | ure, is carefully avoided by those who | emphasize its features under different | conditions. The generally held opinion of the | Interstate Commerce Commission is that it proceeds on the theory that the shipper is right and | wrong and works toward a steady lev- ,eling down of the average ‘of rates. { There may have been justification for | this verdict out of decisions rendered in the past. A careful analysis of its | latest opinion disputes the claim that the commission is antagonistic to pri- vate management of steam transporta- ‘ion, for it makes a number of con- structive suggestions and, for the first time, shows an appreciation of the change in public attitude toward rail- road credit. It is for this reason that friends of the railroads hope that they will accept the pooling proposal of the commission and thereby gain the prac- tical advantages of it and avoid threat- ened receiverships. This friendly atti- tude also will give them a standing with the public and its representatives i Congress. making it easier for the carriers to obtain support for measures affecting the rate structure, consolida- tions and. pehaps, wages, to be brought forward for discussion later on. (Copyright, 1931.) SILVER QUOTATIONS. NEW YORK, October 24 (#)—Bar silver easier and !; lower at 29%. dend of $4 a share on their common | the railroad \s’ R AN §\. B ,. RN \ N ) MY, Ve (Copyright, 1931.) YEAR. BUDGET BALANCE, OK! NO TAXES, NORENT, NO GAS BILL, NO GROCERYBILL. ./ /) NO coALBILL. )/ NO EMPLOYMENT NO INCOME TAX NO INCOME ! DROP IN RETAIL FOOD PRICES RAISES DOLLAR VALUE TO $1.39 The retail purchasing power of the { American dollar, as far as fdodstuffs | are concerned, is 39 cents greater than | it it was in 1925, according to figures compiled yesterday by Ethelbert Stewart, | commissioner of the Labor Department’s Bureau of Statistics. In computing the retail purchasing power of the dollar at $1.39, the com- missioner said that since December, 1929, the dollar's purchasing power has in- creased 37 cents. He affixed the whole- sale food purchasing power of the dol- lar at $1.40. ‘The base of these index numbers, or 100, was December, 1925, and the avail- able data show that for almost three years both the retail and wholesale food purchasing power increased only 2.8 per cent. Two months after the Wall Street crash in 1929, however, the dollar be- gan to increase steadily in value until now is it only 8 cents less than in 1914, the year the World War began. Drop in Wholesale Prices. Commissioner Stewart said the pres- ent industrial depression has played no favorites and, therefore, the purchasing power of the dolar in cost of living, as between December, 1925, l"l';d June, 1931, has increased only 18 cents. He pointed out that during the five and one-half years wholesale prices of all commodities fell approximately 35 per cent, but during the same period the cost of living of the workingman's family—made up of many items besides food—fell only about 15 per cent, and still more significant to the workman, the total amount disbursed as wages in manufacturing industries dropped al- most 40 per cent. - “This (‘i):crease of 40 per cent in pay roll does not mean, of course, that in- dividual wage rates were cut in such oroportion,” the commissioner explained. “Most of the decline was due to the discharge of employes, to the prorating of jobs,and to short-time work. But it/ does mean that the income and conse- quently the purchasing power of em- | ployes $n manufacturing industries as a whole was less by 40 per cent than it was in 1925, as the widespread charac- ter of the depression leaves no reason to believe that workers dropped or pro- rated in manufacturing industries could obtain jobs elsewhere. “This series of events may also be looked at from the angle of what hap- pened to the purchasing power o money during the period of five and one-half years. Because of declining prices, the purchasing power of the dollar, of course increased. In terms of wholesale prices, the dollar of 1925 in purchasing power $148 in June, 1931, but in terms of total cost of liv- ing ‘the dollar purchasing power in- creased only $1.18. “There are thus, in actuality, two dis- tinct “dollars”—the dollar of commerce, or the wholesale dollar, which increased its value by 48 cents during the period, and the dollar of the home, that is, the cost-of-living dollar, which in- creased in value during the same period only to the extent of 18 cents. Declining Pay Rolls. “Meanwhile, as the number of dol- lars_which the workers, at least those in the manufacturing industries, had to spend had shrunk, as noted, by some 40 per cent, the workers attached to manufacturing_industries, taken as & whole, had suffered far more from de- | clining pay rolls than they gained from lower prices on the things they had to buy, their net loss being roughly 30 per cent. Similar detailed information for other groups of industrial workers is not available, but such as is available indicates that the situation of most other groups of workers has been little if any better than manufacturing. “Food, which has fallen so sharply in price, is the largest single item in the workingman's budget, but after all it represents on the average only about 38 per cent of his expenditures, and the cther things which he must buy have shown no such sharp price declines, | with the result that the index for the | total cost of living has lagged far be- hind the food index. “Thus, while clothing prices had de- clined, the price index in August, 1931, was still above 86, and the indices of rent and fuel and light were well above 80. of items classed as miscellaneous, in- cluding such diverse things as street car fares and doctor's fees and repre- senting some 21 per cent of the ex- Moreover, the index for the group | | | | | gnfllfllfll of the average workingman's mily, was actually higher in 1931 than had -been in December, 1935. Change in Costs. “Stated in another way, the change in the cost of living of the family, as between December, 1925, and June, 1931, was: “Food decreased 28.5 per cent, clothin, decreased 13.8 per cent, rent decre: 15 per cent, fuel and light decreased 115 per cent, house lu.rnlahlnf goods decreased 17.4 per cent, miscellaneous items increased 1.5 per cent. “The weighted average decrease of all items was 15.5 per cent.” DECREASE IN BANK DEBITS REPORTED Decline for Institutions Outside New York City Due Partly to Holiday. Weekly business indicators available to the Commerce Department through the Survey of Current Business for the week ending October 17 show that bank debits, outside New York City, de- creased materially from the week previous, due, in part, to the shorter business week in several financial centers. “Total loans and discounts of Fed- eral Reserve member banks,” the de- partment_survey's summary said, “were slightly under the week previous and about 19 per cent under the corre- sponding week a year ago. “Interest rates on call money in- creased after twenty weeks at the same level, the average index for the week being 58.2, against 48.5 for the same week last year. Time money rates in- creased over the previous week, reach- ing the high level of the year estab- lished during January and February. The average price of representative stocks increased slightly from the pro- | ceding week, but were 46 per cent under | the same week in 1930. Bond prices continued the decline which has been under way since the second week in | July, reaching the lowest quotation for | the year. Number of business failures, a‘ reported by R. G. Dun & increased as compared with the week 0., | previous, and were about 16 per cent | ket v: over the number of failures reported for the same week last year. “Wholesale prices, as measured Fisher's composite index of 120 com- modities, increased fractionally from the year’s low. Prices of agricultural products continued to decline, reaching a new low for the year, and 36 per cent under last year. Prices of non-agricul- tural products increased fractionally, but were almost 13 per cent under the same week last year. The price of cotton middling increased slightly, while the price of electrolytic copper remained at the same level as for the preceding week. The composite iron and steel price for the week continued to decline, reaching & new low for the year. “For the week ending October 10, increases occurred over the previous week in cattlé receipts, cotton receipts, electric current production, lumber production, and petroleum production, while declines were recorded in bitumi- nous coal production, freight-car load- ings, hog receipts, steel ingot production and wheat receipts. For the same period the New York Times Composite Index of general business activity showed a decrease of 0.2 point, while the Business Week Composite Index in- creased by 0.5 point. CHICAGO DAIRY MARKET. CHICAGO, October 24 (#).—Butter. Receipts, creamery specials (93 score), 15 extras (92 score), 30!2; extra firsts | (90-91 score), 281,a2915! firsts (88-89 | score), 26a27; seconds (86-87 score), 24a25; standards (90 score, centralized carlots), 29. Eggs—Receipts. 2,134 cases: market Mm-m ne:zn 2!::;"‘. 24‘5-"25: MW , ; current receipts, 19a22; refrigerator firsts, 17%; refrig- erator extras, 19a19!3. by | INVESTMENT BOND MARKET IMPROVES |Rising Money Rates Fail to Check Advancing Trend of List. @pecial Dispatch to The Star. NEW YORK, October 24 —Though it was marked by a heavy volume of liquidation in United States Govern- ment and other high-grade securities, the past week was nevertheless a period in which the investment market | took on fresh hope. | The decision of the Interstate Com- merce Commission flatly refusing the 15 per cent freight rate increase appli- cation and calling upon the carriers to help themselves caused only a minor change in the market’s level. All week long the foreign situattion presented a cheerlerd;lcwre as continental markets parallel an improvement in trade activity, as hl,h hopes were expressed for a favorable outcome of the con- versations between Prmnt Hoover and Premier Laval of ice, and as the foreign exchange market down to a steady level which ended ex- change gambling and assured a stable basis on which to carry intemational e. Prinie Issues Gain. The market, measured by the aver- | ages, changed but little. High grade | issues were weak at the beginning of | the week's sessions and then advanced strongly on Friday, after the New York Federal Reserve Bank h: failed to make the third successive advance in | the rediscount rate. However, specu- | lative bonds, both foreign and domestic, | paid scant heed to the changes in the money market and were actually ad- vancing on the broad front while the prime group was declining. Wall Street accepted without pro- test the indications of rising monev rates. On Monday it was convinced that the week would see even higher rates and as a consequence there was liquidation in United States | Government ~ securities and high- grade munieipals that compared with the frantic selling of junior bonds in hvgone months. More than | $700,000,000 was wiped off the mar- « ue of Treasuries and Liber- ties. New York State 4s dropped | to 4.50 per cent yield basis. Secre- tary Mellon, who only a few weeks | ago found his 90-dav Treasury bills | snapped up at at a .49 per cent annum vield basis, had to pay 2.69 per cent | to_market ‘his latest issue. | ~Meanwhile, with the prospect that | some specific plan would be devised |to help institutions holding large amounts of greatly depreciated rail- road securities, the market was not disposed to be unsettled by the denial of the freight rate increase. As a matter of fact, junior railroad secu: ties that had advanced broadly the | week before in anticipation of a 10 per | cent rate increase, declined only nar- rowly and it was evident that the de- ;e!‘?n had generated very little liqui- on. New Ofterings. During the week new bond offerings amounted to $20,625,000, all munici- pals. This compared with no issues the week before and with $98,039,539 in the same week of 1930. If the money market is stabilized around the pres- ent level, some new emissions may be e L but it is doubtful if any but most attractively priced and solidly “ucurm ed flotations will receive atten- 7 (Copyrisht, 1931.) PLANT RUNS OVERTIME. NEW YORK, October 24 (Special) | —Full-time employment for all the workers in the Corona typewriter plant in Groton, N. Y. during the coming Winter is indicated by present sales and productive plans, g an announcement today by Fowler Man- ning, president, L. C. Smith & Carona Type: , Inc. The plant, ing 700 workers, is now opera an overtime basis. FOREIGN ECONOMIC PICTURE BRIGHTENS DURING PAST WEEK Hoarding of Money Has De- creased on Continent and Exchanges Improve. ATTENTION IS CENTERED ON LAVAL’S VISIT HERE Between President Hoover and French Premier May Solve Financial Problems, Conferences Special Dispatch to The Star. NEW YORK, October 24.—Cable and radio dispatches to the Business Week give the following survey of business abroad for the week ending October 24: Europe.—The business trend is better. Immediate conditions are only very slightly changed, but sentiment and prospects—though the latter must still be hedged with reservations—have brightened progressively throughout the week. The hoarding movement on the con- tinent has slackened and actual re- versal is probable if the present im- proved trends continue. Return to the previous abnormally low bank rates is unlikely. It is the consensus that the former cheap money policy resulted in greater loss of bank interests than could possibly be gained by industry under present conditions. Security Demands. Exchanges are steadier. Dollar short sales have appreciably slacked. Scandi- navia clipped 1 per cent from the re- cent vertically raised protective bank rates, which is an indication of stronger inherent conditions. 1If, as expected, the Reichsbank now weathers the im- mediate ‘exchange , the greatest remaining financial weakness is Austro- Hungary, where French assistance is under negotiation. Attention is riveted on the Laval visit to Washington. Previous = ceptions that the visit was tantamount to a conference, at which decisions would be made, is giving way to the realization that the meeting is essential- ly intended as preparatory to subsequent Franco-American negotiations under the direction of their respective heads of state, who, after this personal ex- e dissonances '.glu ot as oc- cur between their respective parliaments. European opinion is inclined to think the crux of the discussions will be war _debts, reparations, disarmament and gold policy. The complex rests in the French demands for security guar- - antees. If a formula, both satisfying to France and internationally accept- able, can be evolved, ts liquidat: most, if not all & 4 pnoueJ pos- lems, are believed to be & sibility. ed to maintain economic oa:ulbflnmwo,p‘ml: his survival in the polif assault in the Reichstag, have united the Nation- alists, and, for the moment, have lifted the most serious threat overhanging European peace. February 33, This Tesptie Biuentog wi use'to push (I) work on the Franco- | German trade co-operative agreement (2) work on the government’s new Economic Advisory Board. Hitlerism is spreading. Though the trade surpluses are steadily strengthening the ultimate exchange position, it is realized that the necessity for long export credits is among the causes for the slow reflux to Germany of urgently-needed export proceeds. Reichsbank’s final resort of cutting off from rediscount privilege all exporters, who are guilty of not re| ating their export proceeds is e: to show immediate material effects. France—Reassurance has begun t succeed the nervousness of recent weeks. Failure of the German Nationalists to llln' pomltul ;unml ':l.on a source of : great relief and gratification. Similarly, the reported Federal Reserve Bank of France agreement, whereby the Bank %{ ’Pt?dncesltl;:mum: itlln;flllne- in the ni es against earmarking equivalent gold, have both French fear of dollar exchange and increased exchange confidence, the forward discount of dollars falling sharply. Budget Deficit. Staten, ‘sucoeeded In Sepacing. sppes ates, succee: hensions that he would p permit himaselt to be ambushed in Washington. Meanwhile, the greatest cause for domestic concern—the budget deficit— has been allayed by the announcement Without increased taxation are probable without incres ation are and that the current fiscal year 'ua terminate December 1, instead of 31, thus permitting both earlier effec- tiveness of budget reforms and avoid- ance of their becoming issues in the 1932 elections. Great Britain.—Elections—due Oc- tober 27—are impeding and overshadow- ing business, though devaluated sterling is still a benefit to exporters, It is generally expectea that tne Natlonalist government will be returned, and that there will be tariffs next yesr. Stock markets are cheerful. The de- mand is good for short term loans and the general tone is nopeful. Northern interest centers in the Sino- Japanese affair with the feeling wide- spread that there will be some further diversion of China's cotton goods orders to_Lancashire. The attendance of Gov. Norman at the B. I S. meeting in Basle has quieted British rumors as to his pending retire- ment. It is still felt that he will not go forward to renomination in Novem- ber, but even this, in view of his rapid improvement in health, is now more doubtful. —_— POWER FIRM CONCLUDES ELECTRICAL CONTRACTS Specia) Dispatch to The Star. BOSTON, October 24—New England Power Association, a division of Inter- national Hydroelectric System, has in- creased deliveries of w% e o, of, Boston by 60" et cmmk o . of on nually io 150,000,000 Eilowatt hours wa- being sale of electricity for renewable periods extel for 2 years from Octover i, 1930. Deliveries of energy will be at the new rate during the balance of the term of the contract, except that dur- ing the last two years the amount is T Power delivered under this contract erdelive T erated at the 215,000-horsepower