Evening Star Newspaper, November 1, 1931, Page 69

News of Markets Pages 1 to 4 FINANCIAL AND CLASSIFIED he Sunday Star Clossified: s Pages 5 to 12 Part 6—12 Pages DROPF 11920 INDISTRT'S BN CLEARNES SHOWN October Figures Reveal De- cline From Those of Same 1930 Month. SEASONAL TRADE GAINS HAVE LESSENED DECLINE Recent Reports of Richmond Fed- eral Reserve Bank Show Local Business Improvement. BY EDWARD C. STONE. Bank clearings in the National Cap- #al in October totaled $106,592,111.85 compared with $118,084915.3¢ In Oc- tober, 1930, » falling off cf $11,992,- ] i : LS i i ¢ £ ] o & 2 issues d o o sound y aggre- 'l”'wvlh 's last e&‘\n o il 29 focussed attention on with the the September call a still farther back is 12, 1916, Washington deposits of $96,208,- sy here “had 1,326.20. The Fall call 10 and re- Jumped * to 10 ‘local deposits had Teached 'l.lli?’.g'lt.'ll. an increase of u.'-.- Autumn eall in 1938 came on October 3 and found deposits near the gltys \all-time record, deposits being 4.232.831.27. That pace appeared a Bit too lively and on October 4, 1929, deposits aggregated $269,589.885.84. By September 24, 1930, they had dropped back to $265,706,200.93. pen b L FE T bt ? Septomber 29, were $275,787.827.46 The figures are sufficient to mu long and steady bank growth . Best of all, the gains have been made by sound banking practices. Institute #Has 288 Students. Class enrollments in the Fa» last, local deposits Then the pen- | dulum swung forward and on the call | WASHING VIRGINIA BANKERS HONOR UNIT ORGANIZER. VIRGINI'S CREDIT WORK UNDER WAY Under Guidance of Julien H. Hill. | PRIGES ATTRIBUTED . TOGAINSIN TRADE IMarket Upswing Has Pushed Averages Above the Levels of September. BROADENING INDUSTRY HAS HF'PED CONFIDENCE Rise in Commodities and More Stable Money Conditions Prove Constructive Factors. BY CHARLES F. SPEARE. Special Dispateh to The Star. NEW YORK, October 31.—There has been good news and bad news this week, to which the response of the stock market was at first indistinct, suggest- ing uncertainty over the effects of events here and abroad, but finally was |definite. It is comforting to know that “nnerh: month of vr:i%nd.ly m- cant happenings around the world, Oc- tober ends with average prices cf stocks above the level of September 30. The public is gradually becoming more sane in its atiitude toward finan- cial conditions. While Wall Street is conscious of this, it has this week shown new symptoms of hysteria. There has been much ofmv‘rm might beM “blacklegging” going on there. fusal to accept as helpful the various structive pro had their this month, has been conspicuous. Obviously, the demands immediate remedies. Because, therefore, the National Credit - tion has not checked the fallure of banks, or the Interstate Commgrce Com- merce cedommmmm nx: decision has not prevented rai m or dividends, or memm success of the Conservative party in the British election has not th e de~ tions. | cline in sterling, Wall Street has had he uum:ywmrl‘mnn Educated at t! of 5 he elmem‘the ba ladder rapioly, bel d of the State- ! s mggnmm.;mm . E. Beaman, president, Norfolk Na- Bank of Commerca ‘Trusts; president, Lynchburg & Trust Co.; J. Tyler chairman, Pirst National Ex change Bank of Roanoke; Plum mer, vice president and cashis jonal Bank, i 3 s N . Net News; Oliver J. Sands, prsldent.'mflun Bank & Trust Co., Richmond: William H. Schartaschild, president, Central Na- tional Bank, Richmond; Walker Scott, vice president, Vi . Richmond; C. E. any, president, Farquier National Bank, Warrenton; John C. White, vice president, First & Merchants National Bank, Richmond, and John T. Wfl.son..grmh Bank of Commerce & Trust, Richmond. The Loan Committe organized by electing Mr. Hill chairman and Louis W. Bishop secretary-treasurer. The unit is known ciation, No. 1, of the Fifth Federal Re- serve District.” MORE CHEERFUL MOOD DEVELOPS IN STREET Special Dispatch to The Star. NEW YORK, October 31.—It was re- |garded as significant by Wall Street ithlt the main headlines in this morn- ing's papers dealt with events and statements that were of a highly con- structive nature. ment by President Hoover outlining the various points in the business and bank- |ing situation where improvement has | occurred, the repayment by the Bank of England of a substantial portion of its Joan from the Bank of France and the Federal Reserve Bank of New Yor the rise in wheat and the confident e; Dression as to the future of business by A. H. Wiggin of the Chase Bank, Presi- dent Sloane of General Motors and President Farrell of the United States Steel Corporation It is a long time since such a grist of cheerful news has been displ: ing incidents cf the depression as they have come out here ; | and abroad. crease of 81 students. A decrease was anticipated by the committee and local | officials were recently informed | Merg- it the Te- by the national president, Henry Jer, that other chapters i oA Cotton Seed Price Raised. EL PASO, Tey., Octaber 31. Cotton Industri perating gins in the Mesilla Valley of New Mex- ico, has ann cunced an increase in the seed from $7 to Independent ginners have g $7 to $8.75, most prominent business, professional |and civic Jeaders who are bank di- = | rectors. chapter said the ‘would in ity the s { tended to routd Financial District Notes. Norman E. Towsen, assistant treas- {urer of the Washington Loan & Trust . has written a most interesting | treatise on “Employment: Leisure and i Its Utidization.” The Council of Administration at- matters only at its has moved its trading to the Bquitable Build- 20 Broadway, according to no- e { moments of deep despair, expressed a cynical attitude toward all Govern- ment measures of relief. a z Essentially they are . Already they have created a t through. out the country reflected in less hoard- ment out as National Credit Asso- | These included the unusual state- | ed. It | .1 was quite welcome after the weeks of y | portrayal of harrow! , it gradually imp] . | are being expanded into evidences of a rapprochement between France and Germany. man credits and, seccnd, reparations payments, should be the outcome. The breader view of the British elec- tion is that it gives Engiand a business government and helps to re-establish British trade l:ld credit. This States than any loss ml{be compelled to tal f higher British tariffs. portant to consider lly realized in consequence It is also im- that Prance h she cannot play a lone hand either in or in politics and continue to draw gold from every quarter without bringing down disaster up’iu'nh herlelf‘.n th e turn e exchanges this week has made it clear that the European fear of the dollar has vanished and it would not be surprising to see exchange soon at the importing point. | Stable Money Conditions. The week\has been freer from money i disturbances than those immediately preceding it. No change has occurred This has taken some of the pressure from the market for Government is- sues. The effects of the rapid transition from extremely low interest rates to those that are about normal for this season from year to year have not worn off and are visible in the continuance of price demoralization in municipal ’b‘rnds and the higher corporation is- sues. It is understood, for . that this shrinkage to New State in income taxes, taxes on enlarging expenditures through borrowed |money to meet their local unemploy- ment conditions. On the industrial side of the picture this week is a slight advance in the {Tate of iron and steel production, stead- Iness in oil prices, larger sales of metals, | an expansion in the operations of textile | mills in those centers not affected by labor troubles, supplemented by a_sur- | ey by the National Association of Ma | ufacturers which indicates that trade |1s making slow gains, and that in- Ties are at the lowest point in The status of the wheat-growing s of the country has been helped N advance in grain prices—pro- moted by speculative interests, to it _backed by strong statistical While October has approached record of last December in the | Dumber of its bank failures, it is en- | couraging to realize that these tapered jOff sharply in the last week of the month, 5 The | uation conditions, {the " cay | measure iers of health. It is just as neces- fary to build them up that American s Irdusiry shall recover as, that Germany |be.put back on her feet for the good of Europe. This week has Wi d ng of the dividend on Illinois for the first time . similar action by g:nning of th > of prominent steam carriers have compelled to make a downwar o tn thelr pmm-mgu g °se no fewer than ‘have entirely omitied dividends. Within the next few weeks several more are (Continues on Third Page) In the Federal Reserve rediscount rate. | TON D. €, SUNDAY MORNING, NOVEMBER 1, 1931 BLOW AGAINST HOARDING SEEN IN RAISING OF BY CHAS. P. SHAEFFER, Associated Press Business Writer. ‘The latest report of the Federal Re- serve central banks, combined, sho that the abnormally high len.luot maney 21, Tepr highest figure 1n the last five years except during short seasonal rises. Ordinarily increased money in circu- lation means expansion in trade and industry, as ‘more cash is required to carry on operations. As statistics of business production and commerce at present do not bear out this theory, the money policies o & of redisoount rates 48 DISCOUNT RATES cause was ascribed by officials to in- creased withdrawals caused by hoard- 'I"he recent action of the Federal Re- serve Banks in reversing their easy- upward held here to have o ‘lu:.‘ i llntwy“ in drcuhl of local 3 week ended October 28. Year-end periods, when de- mands are met and when annual dis- bursements are made, always cause & seasonal rise in money in circulation. The increase in use of checks as a medium of payment is a factor which tends :: reduce the umou'xfi of :ur; rency in use, emphasizing the presen huge supply. However, the decrease last week is belleved to show definitely that the hoarding movement is arrested and that money is being redeposited as con- fidence returns. ORDERS FOR LUMBER AGAIN ON INCREASE Sales Were 1 Per Cent Above Pro- duction for Week Ended October 24. Lumber orders were 1 per cent above the cut during the week ended October 24, 1t is indicated in telegraphic re- ports from 816 leading hardwood and softwood mills to the National Lumber Manufacturers’ Association. No rise in the production level was indicated, the combined output of these mills being given as 168,218,000 feet for the week. Shipments were reported 7 per cent above this figure. A week earlier 831 mills reported orders equal to the cut, 177,536,000 feet, for these mills, and shipments 9 per cent above this figure. Comparison by identical mill figures for the latest week with the equivalent pe- riod a year ago shows—for softwoods, 457 mills, production 33 per cent less, shipments 25 per cent less and orders 30 per cent less than for the week in 1930; for hardwoods, 215 mills, produc- tion 40 per cent le: nipments 16 per cent less and orders '3 per cent under | the volume for the wek a year ago. Lumber orders re) for the week , | ended October 24, 1931, by 582 soft- wood mills totaled 150,349,000 feet, or | 2 per cent below the production of the |same mills. Shipments as reported for the same week were 159,785,000 feet, or 4 per cent above production. Produc- tion was 153,405,000 feet. Reports from 252 hardwood mills ('l\'e new business as 20,060,000 feet, or 45 per cent above production. Ship- ments as reported for the same week were 20982000 feet, or 42 per cent above production. ~ Production was 14,813,000 feet Reports from 485 softwood mills give unfilled orders of 491,123,000 feet on October 24, 1931, or the equivalent of 10 days’ production. This is based upon production of latest calendar year— be | 300-day vear—and may be compared with unfilled orders of - 527 softwood feet, the equivalent of 15 days’ produc- tion. The 417 identical softwood mills re- port unfilled orders as 477,516,000 feet or the equivalent of 11 days' average production on October 24, 1931, as com- pared with 734,126,000 feet or the equivalent of 16 days’ average produc- tion for the same week a year ago. Last week's production of 457 identical softwood mills were 141,096,000 feet and a year ago it was 209,825,000 feet; ents were, respectively, 148,988,000 feet and: 198,805,000, and’ orders re- ceived 139,195,000 feet and 199,611,000. In the case of hardwoods, 215 identical mills reported production last week and 8 year ago 13,372,000 fest and 22448, 000; chipments 19,420,000 feet and 23, 129,900 fect and 21,304,000 Directorate Increased. NEW YORK, Octcber 31 (#).—The Products board of directors of Westvaco Chlorine | H been in- | creased from five to seven. C. B. Hib- | Natl Corporation bard of the Guaranty Co. and F. D. lv-e&{al Hornblower & Weeks have h"det\n to the board, e mills on October 25, 1930, or 778,476.000 | and 23,139,000 feet and | ts | orders 18,639,000 feex CREDIT EXTENSION Agrees to Three Months’ Loan Renewal. By the Associated Press. LONDON, October 31.—The Federal Reserve Bank of New York and the Bank of France have granted the Bank of England a three months’ extension of the major part of a credit advanced last August in an effort to restore con- fidence in the pound sterling. The two foreign banks granted the request of the Bank of England for extension of $150,000.000 of the $250,- 000,000 total credit, both participating eqe“d‘;uy as they did in the original credit. ‘The Bank of England, in announcing the extension from October 31, acknowl- edged that it had made the request and that “in part provision of the balance, repayment of which was proposed by the Bank of England, the sale of £15, 000,000 in gold bars has been arranged.” Several newspapers attributed the drop in sterling during the past day or 50 to extensive dollar purchases by the Bank of England for the purpose of | paying off the loan. |RETAIL SALES TREND IS DECLARED MIXED By the Associated Press. NEW YORK, October 31.—The trend of retail sales during the past week was mixed, with some sections of the country showing an increase while other sections showed a decline, according to | the weekly survey by the Fairchild pub- | lications. = Preliminary reports on Octo- ber sales indicate a probable decrease of 10 per cent as compared with Octo- ber, 1930. September sales registered a decease of 14 per cent under septem.v‘ | ber, 1930. | Fall apparel sales have declined under a year ago, due to unseasonable weath- er. Retail prices of apparel have been | reduced markedly in many instances to | | stimulate sales. |" According to available reports, No- vember 1 retail prices may show the | greatest decrease under the previous | month for 1931. Early reports received - INSURANCE STOCKS NEW YORK, October 31 (#).—Over- | the-counter market: | Aetna Cas & 8 | Asricultural . Amer_Home Bid. Asked. | 46 51 Fid & Dep.. . : " remen's 1o .- % 1 GRANTED TO BRITAIN & New York Federal Reserve Bank|still | men’s is 14 TRADE GAIN NOTED IN'FIFTH DISTRICT URGED AS METHOD OF FREEING CREDIT Noted Economist Advocates Suggestion Recently Made by Controller Pole. URGES CLOSER SCRUTINY IN GRANTING OF LOANS Believes More® Expert Advice Would Prove Helpful to Many Small Institutions, BY DR. MAX WINKLER. Special Dispatch to The Star. NEW YORK, October 31.—In view of the many complex problems which con- tinue to confront the banking institu- tions in the United States, Dr. George W. Edwards, an authority on banking and finance, was requested to express his views on these very vital questions. £ H g i b B §E gé Egfe o il center. “The Federal Reserve ported, for 1930, the failure of over institutions, with liabilities in excess 3 the nine- September and Early Octo- | 2> ber Marked by Seasonal ; Rise, Says Review. By the Associated Press. a:':mu x:.‘he the fifth. Federal announced ln% credit, business Nn’:d a i up- though less than in recent years, the usual August - business was General iess tobk a turn during September; and, increase ~over shown. . Business Failures Fewer. seB'ul!nefll faflures in lhemd.l.:u;l;t ll: reported abou CERt Tewer 1 humber. but mvolving Ja bilities about 50 per cent greater, than Employment conditions showed no lmwo?/eml in September or the first half of October, and coal production showed a seasonal increase over Au- gust, but was much below September, 1930, production. Retail and wholesale trade both crops, possession. of which will enable farmers to get along with less cash or credit this Winter than they needed last year, when the drought killed all gardens, reduced fruit and truck yields to a minimum, cut yields of corn in half, or worse, and burned up pasture grasses, Rediscounts Gain. ADVANCE IN'STOCK | [« ~ew muckmone was weeoeo ] BRANCH BANK PLANIPOLITICAL FACTORS CONTINUE TO SWAY OVERSEA BUSINE European Situation mmninl; Clouded, Pending Action on ! Reparations Issue. i [ 4 BRITAIN IS BENEFITED BY NATIONALIST VICTORY German Exchange Crisis Alleviat- ed—Results of Laval's Visit to U. 8. Awaited. Special Dispateh to The Star. NEW YORK, October 31.—Cable and radio dispatches to the Business Week give the following survey of business abroad for the week ending October 31: are now - confident French. . | United States will In its summarized statement of con- | ing diti f October 15, the Reserve Bn‘n.rsfiwzd rediscounts held totaling more than $32,000,000, as against $23,- 000,000 for September 15 and $18,000,- | ¢o October 15, 1930, i paper held_increased on ber 15 to assets as of October 15 3 t_$57,918,000 on Sepember 15 and ,377,000 on Octo- ber 15, 1930. HOSIERY TRADE ADOPTS COMMERCIAL STANDARD By the Associated Press. A general conference of the hosiery trade has approved the adoption of a ercial standard. Believing that a reduction in the variations of l:ngths is of economic importance to both the user and the manufacturer, the conference, held the show declines for most stores reporting. | U to delivered by the ufacturer. The standard length for women's hose under adoption is 30 ; that for inches for size 10 and un- der, and 14! inches for sizes above 10. 2 bank may experience difi- culty in diversifying its loans and dis- counts due to the type of clients it z?;"u ml;“ 'Mu help. v uate security woul in miti- gating ' this difficulty. 3 there is no justification for the existence of a low-grade portfolio of bond hold- ings, which are either in default or have suffered a sharp price decline. o G e pla y on banker, who frequently was requently un- derwrote and sold issues without dis- crimination. “Particular] ment_houees which sold South Ameri- can bond issues, whose proceeds fre- quently were diverted to hannel gne to bear on them Srmany nor take any unexpected initi- ative similar Hoover bombshel} Similarly, German demands for in the cause of ly s this true of invest- | for: