Evening Star Newspaper, November 8, 1931, Page 67

News of Méz:kets Pages 1 to 4 RESD RAPILY IN BANKS HEREDURNG YEAR Undivided Profits and Funds for Dividends Also Higher, Controller Reports. BOND CLUB MEMBERS TO HEAR RAIL EXPERT Baturday Trading Reviewed on Local Exchange—Institute Committees Appointed. BY EDWARD C. STONE. ‘Washington's 39 banks had total re- #ources of $337,034,000 at the close of business on September 29, the date of the controller's last call. This figure compares with slightly larger resources ©f $340,180,000 on’ the cali of June 30, 1931, but _shows a substantial increase over the September 24 call a year ago, when total resources of 40 local banks | aggregated $326,633,000. Details from the abstract summary of the condition of local banks on Sep- tember 29, reveal that the banks here have aggregate capital stock amount- ing to $32,328,000, national bank capi- talization being $11,175,000; savings bank capital stock, $2,753,000 and trust company capitalization, $9,400,000. Local banking institutions have a to- tal surplus of $20,278,000, of which $8,725,000 is held by the national banks; $1,803,000 by the savings bank group, and $9,750,000 is on the books of the trust companies. While the ag- egate capital stock of the local banks s remained unchanged for some time, they had a little larger surplus fund at the time of the June 30 call and also ® year ago in September. Large Undivided Profits. Washington banks now have und vided net profits amounting to $6,696.- 000. The division of these profits shows | that the national bank grcup holds $3,073,000, the savings banks have $834,000 and the trust companies are carrying $2,789,000. Although below the June figures, the aggregate undivided profits are substantially ahead of the report made following the call of Sep- tember 24, 1930. Another item of special interest in| the Washington bank summary relates | to reserves carried for dividends and! contingencies. These reserves now total | $7,539,000, compared with the lower fig- ure of $1,505,000 revealed by the June 30 call, end the still lower figure of $1,452,000 reported at the time of the September call a year ago. 1 Centroller Pole's summary, taken as it is from the individual statements of all the banks in the city, will be re- ceived with great interest and satisfac- tion by local bankers, since the abstract depicts Washington financial institu- tions in a very sound position. Little wonder that the status of the banks here is the envy of bank officials in scme of the far corners of the country. As already noted, Washington resi- dents had $120,218,000 salted away in savings on the date of the last call, against $113,878,000 in thrift accounts in September, 1930. There are now 325,379 savings passbooks held by de- positors, compared with 315,650 savings accounts in the local banks a year ago. | Trading on D. C. Exchange. ‘Washington Railway & Electric pre-, ferred sold to the extent of 10 shares! on the Washington Stock Exchange yes- terday at 94, the same price as in other sales during the week. A 100-share block of Real Estate Mortgage & Guar- anty preferred changed hands at 6! and Potomac Electric Power 5! per cent preferred registered a 6-share sale at 1067, up 4 from several other quota- tions recorded in the past few days. Bond business was confined to $1,000 #ale in Washington Gas 6s, series A, at 1007%, up i. . The securities not listed under Ex-| change rules were called off and few changes in quotations noted. The bid on Cosmos Club 4!5s is now 83, May- flower Hotel 6s stand at 25 bid and 27 asked, and 44 is now being asked for National Press Building first 512s. The largest spread between bid and asked prices in this list is on Munsey Trust Co. stock, 100 being bid and 160 asked. Lawrence M. Proctor, president of the ‘Washington Bond Club, announced yes- terday that Julius H. Parmelee, director of the Bureau of Railway Economics, will be the guest speaker at the No- vember luncheon at the Carlton Hotel next Tuesday noon. Mr. Parmelee will discuss “Railway Credits and Rates.” The Bond Club officials are highly | elated@to have this railroad expert ad- dress the members. He was the first and one o’ the chief witnesses for the railroads . the recent gate hearings be- fore the Interstate Commerce Com- mission and showed a remarkable :nowledge of railroad finances and traf- “What railroad Wnds are likely to do in the next few weells Is of the greatest | pbration will be known as National | Credit Association No. 2 of the Fifth 000,000 MARK FINANCIAL AND CLASSI @he Sunday Star WASHINGTON IS PASSED IN CREDIT AID SUBSCRIPTIONS Corporation Head Predicts Original Re- quest for Half Billio | | | | By the Associated Press. NEW YORK, November 7.—More than $400,000.000 of subscriptions to gold notes of the National Credit Cor- poration are already assured from banks throughout the country, Mor- time= “ Wuckner, president of the corporation, reported after a meeting of the Executive Committee at the Federal Reserve Bank. “The amount already subscribed,” saild Mr. Buckner, “and the “indorse- ment of the plan throughout the coun- try satisfy the committee that the original estimate of $500,000,000 will be exceeded. The committee accord- ingly has instructed the officers of the corporation in their discretion to issue an initial call for 10 per cent of sub- scriptidns to the notes as soon as any applications for loans from banks in fully organized associations are filed.” n Will Be Exceeded. No Loan Applications Received. Although the corporation, formed for the purpose of assisting well managed banks throughout the country to weather any crisis, has been ready for business several weeks, not a single application for a loan has thus far been received. Subscriptions of the various banks, Wl and if needed, will be deposited in their district Federal Reserve banks. This does not mean, however, it was said, that the money thus raised will be used only in the Reserve district in which it is subscribed. It can be sent to any other district to meet an emergency. ‘Those present at the Executive Com- mittee meeting were George M. Rey- rolds of Chicago, chairman of the board; Mr. Buckner, Daniel G. Wing of Boston, Livingston E. Jones of Phila- delphia and Arthur E. Braun of Pitts- burgh. | MARYLAND CREDIT FUND IS 5280000 Sixty Banks Participate in‘ National Campaign— Larg- er Total Is Likely. With $5.280,000 already subscribed by 60 banks in Maryland, the total Mary- land subscription to the $500,000,000 National Credit Corporation will around $6,000,000, according to Charles E. Reiman, who was named organiza- | tion manager for Maryland and ap- | pointed chairman of the committee. The committee was organized on Oc- | tober 20 with representatives of 80 of the approximately 130 banks in Mary- | land represented at the meeting, at which Mr. Reiman was _selected as chairman and Matthias F. Reese, man- ager of the Baltimore Clearing House, secretary and treasurer. At the meeting of the committee it was decided to allot the various coun- | ties of the State to four subcommittees, 50 that the banks in those counties can confer directly with representatives of | the credit organization located in their | vicinities, without the necessity of com- ing to Baltimore. Under this arrangement the following out-of-town committee members will deal*with banks in the counties men- tioned below: Henry Shriver, First National Bank, Cumberland: Garrett and Allegany. Holmes D. Baker, Citizens' National | Bank, Frederick: ~Carroll, Howard, Washington and Frederick. T. Howard Duckett, Prince Georges Bank, Hyattsville: St. Marys, Charles, | Prince Georges, Calveri and Mont- | gomery. William S. Gordy, jr., Salisbury Na- tional Bank, Salisbury: Worcester, Wi- comico, Dorchester, Caroline, Somerset, Queen Anne, Talbot and Kent . Banks in Anne Arundel, Harford and Baltimore Counties will deal directly with the Loan Committee in Baltimore. Maryland's unit of the national cor- Federal Reserve District, and the loan committee consists of 10 members. In addition to Mr. Rieman, the members | are: Morton M. Prentis, president of the First National Bank, Baltimore; A. H. S. Post, president of the Mercantile Trust Co., Baltimore; W. Bladen Lown- des, president of the Fidelity Trust Co., Baltimore; Howard Bruce, chairman of | the board of the Baltimore Trust Co., Baltimore; W. Graham Boyce, vice president of the Union Trust Co., Balti- more; Holmes D. Baker, president of | the Citizens’ National Bank of Fred- | erick; Willlam S. Gordy, jr., State| controller and cashier of the Salisbury National Bank; Henry Shriver, presi- dent of the First National Bank of Cum- berland; T. Howard Duckett, vice pres- ident of the Prince Georges Bank, Hy- attsville. Although the Central Loan Commit- tee for the State had been completed, Mr. Rieman pointed out that no Mary- land banks have yet called upon the credit association for loans. INVESTMENT MARKET GAINS DURING WEEK Index of 60 Bonds Advances 2 1-2 Points Above Low of Year. Special Dispatch to The Star. | Importance to bond men here and every- where. ~ Mr. Parmelee’s information | eomes from behind the scenes. Institute Committees Named. ‘Three important committees—Ar- ehives, Audit and House—were appoint- ed yesterday by President Aubrey O. Dooley of Washington Chapter, Amer- ican Institute of Banking. The Ar- chives Committee includes Robert G. ‘Witton, First National Bank of Alex- andria, chairman; J. Earl McGeary, W. B. Hipbs & Co.. Norman E. Towson, ‘Washiagton Loan & Trust Co.: William G. Winstead, National Metropolitan, and William P. Keith, American Security & Trust, Co. . B Mr. Whitton, the new chairman, was educated in c¢h2 Alexandria High School and the Washington Preparatory Scheol. is an institute graduate, has been on ell major commygttees and the board of governors and was a delegate to the na- tional conventions at Philadelphia and ‘Tulsa. He is assistant cashier of the bank in which he is employed and presi- dent of the Mortgage Finance Corpora- tion of Alexandria. ‘The purpose of the committee is to maintain records of chapter activities, preserve such records for future gui ance and collect historical data on in- tute matters. ‘The Audit Committee chairman is Lloyd H. Johnson, Northeast Savings Bank, and the other members are Ar- thur E. Meade, Departmental Bank, and Nelson M. Stokes, Lincoln National. Chalrman Johnson got his first banking experience in Syracuse, N. Y., where he was educated end took a special course in fine arts at Syracuse Uni- versity. He has taken many Washing- ton Chapter courses and has been with the Northeast Savi~e Bank since 1921. The committee which he heads audits all committee accounts, treas- wrer’s records and verifies all the chap- ter's receipts and disbursements. Miss Anna P. Crawford, McLachlen i bond prices has not been as rapid, per- NEW YORK, Nov. 7.—In the past week the investment market regained virtu- ally all of the ground it had lost during the entire month of August. Standard Statistics’ index of 60 bonds ended the week fully 21, points above the low of the year registered early in October. Translated into dollars this means that bonds listed on the New York Stock Exchange have appreciated about $1,- 750,000,000 from their 1931 low. In- cluding issues listed elsewhere and un- listed bonds, it is estimated there has been a total appreciation of not less than $3,500,000,000 in bonds held by American investors. ‘Traditionally every recovery is inau- gurated with an improvement in ecm- modity prices followed by a broad ad- vence in bonds. The present climb of haps, as scme past recoveries, but it has one feature that has been lacking in all other upturns of the bond market since the start of the liquidation of 1929. The advance has been in heavy volume, with day to day sales from 30 to 40 per cent heavier than a year ago, and almost twice as heavy as those of the stagnant days of last Summer. The market has gained momentum on the advance. ‘The new-capital market is still in the doldrums. Only $5,000,000 of bonds were put out in the week, following a week In which there were no offer- ings. In the same week of 1930, $40,- 525,000 of new bonds were offered. The outlook for new issues is improving, { however. (Copyright,_1931.) R. Flemer, Naticnal Metropolitan; Wil- | lam F. Russ, Munsey Trust Co. and { Nelson M. Stokes, Lincoln National. Chairman Crawford is an institute graduate, member of the Board of Gov- ernors, has served on the Women's Committee and several others. Th Banking Corporation, was made chair- man of the House Committee, the other members being Ellen C. Crawford, ican Security & Trust Co.; George committee, as the name indicates, sees that the class rooms and all equipment are always in perfect order for the ban] students. Loan Assistant D DUCKETT. T. HOWAR! . o i —Harris-Ewing_Photo. Increase in Retail Sales Is Reported During Past Week By the Associated Press. NEW YCRK, November T7.—Retail s showed a marked improvement during the week, according to the week- ly survey by the Fairchild Publications. The movement of goods was more fa- vorable than during any week in recent months. The improvement in sales was due to more sessonable weather, an im- provement in psychology and a gain in farm purchasing power. Reports Te- ceived indicate substantial gain in sales in the wheat States. Kansas City in particular reports the most favorable volume in several years. Apparel sales gained during the week. This referred to both men’s and women's wear. There was a marked improvement in women's coat sales. Despite the improvement in whole- sale prices, the trend of retail prices continued downward. Latest reports | indicate a new low in the present de- flation. There is generally a lag be- tween wholesale and retail prices. . JOINT STOCK LAND BANK AID FROM U. S. IS SOUGHT: The Federal Government should come to the aid of the joint stock land banks as well as the Federal land banks, it is contended in a brief for the Joint Stock Land Bankers' Association. Everett Sanders, former Secretary to ex-President Coolidge, is the author of the brief, which contends that any re- medial legislation should apply equally to both joint stock and Federal land banks and their borrowers. In support of this contention, quota- tions are listed from authorities, over a number of years, backing the asser- tion that because the bonds of the joint stocks are termed instrumentalities of the Government, and because there is an avowed public purpose carried out in the operation of these banks, accord- ing to Mr. Sanders, “the ‘geod faith and credit of the sovereign’ requires that it come to the aid of the joint stock and Federal land banks, which from their inception have been nothing but Federal instrumentalities, the main purpose of which has been to perform a Govern- ment function.” |WHEAT RISE WILL AID STOCKS, SAYS McNEEL Commenting upon “this sub-cellar bargain basement” in which many com- mon stocks are now selling, R. W. Mc- Neel of Boston points out that promi- nent agricultural and mail order stocks will benefit financially, and eventually marketwise, by the current spectacular rise in grain prices. Mr. McNeel writes: “The advance of over 30 per cent in the price of wheat is most important. ‘There are between 1,000,000 and 1,- 500,000 wkeat growers in the United States and between 3,000,000 and 4,- 000,000 persons actively engaged in wheat producing. Many others are af- fected indirectly. Tending to restore buylng power in cne of our most de- pressed indystries, and above all, tend- ing to restore confidence and hope among a large section of the people, it is also demonstrating that the price of something can go up. It will surprising if this is not gradually com- municated to other commodities, and to the securities markets. { PRICE STABILITY CALLED BEST SIGN OF TURNING Special Dispatch to The Star. BOSTON, November 7.—Wholesale prices have shown better stability in the past five months than at any time in the past two years, says the United Business Service. Since early in June there have b2en minor gains 2nd losses that_in total offset each other, so that on Novembar 1 the price level was practically the same as in the early Summer. This price stability is probably th> most encouraging feature in the busincss world at the present time. Falling prices are a great burden to industry be- cause of inventory losses, hesitation on the part of the buyers and sacrifice sales. With the price decline halted—at least in the major raw materials—in: ven occur, hoi et losses no longer margins 1 3 will be more active, and profit will be protected, ADVANCE N STOCK MARKET FOLLOWS COMMODITIES CAN Remarkable Upturns Wheat and Silver Attract Interest of Traders. DAY in BOND LIST BENEFITED BY IMPROVED PROSPECT Money Stringency Disappears and United States Gold Stocks Show Notable Increase. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, November 7.—Com- modities have held the center of the stage this week; securities, especially stocks have been in the background. For the first time in two years there has been a definite and apparently le- gitimate upward trend in those values that are fundamental to a healthy con- dition of business in this country, and which play a prominent part in de- termining commercial and banking sentiment abroad. For instance, the remarkable rise in foreign dollar bonds, which in some issues represents a re- covery of 75 to 100 per cent from the low figures of the last month, 45 in- timately associated with the advz ice in wheat and silver, for as these co™ modi- ties once more approach the procuction cost level the problems connected with both internal and external debts of South American _grain-growing and silver-mining republics are lessened. The rise in wheat developed from the fact that this staple a month ago was selling at the lowest price on rec- ord, duplicating the situation then ex- isting in many corporation stocks that were also lower than they had be>n within tthe memory of man. In both cases the irreducible minimum of value had been reached. The incvitable re- bound took place simultaneously. With wheat the so-called “technical situa- tion” was favorable, rather more so than with stocks, for visible supplies were decreasing, negotiations were go- ing forward covering the purchase of grain by foreign countries and the out- look._here and abroad indicated a re- duction in acreage as well as yield for the oncoming crops. Farm Outlook Brightens. If it had been a presidential year one might have suspected that leverage was being created through the appreciation of nearly 50 per cent in wheat in the month prior to election day. There is no doubt that this change, represented in a half billion dollars of added money value to the wheat unsold, has already effected o decided uplift in sentiment in the ag- ricultural districts. It lightens up the bustness skies in the Central West and the Southwest and helps to religve the darkness that still envelops the indus- trial East. The situation in silver is rather dif- ferent from that in wheat. Its decline had also gone so far that existing rec- ords could not keep up with the steady fall in price. It had dropped far below the cost of production. In spite of this, as in wheat, the output of silver has been out of proportion to the demand for it and to the supplies on hand. There is both a political and an economic relation to the rise in silver. It has an international. as well | as a national aspect. In the minds of many gold, as the absolute soverign in the monetary system, has been per- manently dethroned. The abandon- ment of the gold standard by England and the Scandinavian countries, along with the situation in South America and the delicate position of Germany, has brought a cleavage in the ranks of economists that is likely to find expression in strong arguments for in- ternational bimetallism. It may sur- prise many to know that in the Re- publican_platform of 1896 there ap- peated the following: “We are unalterably opposed to every i measure calculated to debase our cur- rency or impair the credit of our country. We are, therefore, opposed to the free coinage of silver except by international agreement with the lead- ing commercial nations of the world, and until such agreement can be ob- tained the existing gold standard must be preserved.” Buying Power Enhanced. It has been admitted for nearly two years that a part of the world depres- sion is due to the reduced purchasing power of those countries in which silver is the monetary unit and that their commercial vitality has steadily been declining as the price of the white metal fell month by month. In all, therefore, a tonic has been administered to the enervated business world as the prices of wheat and silver have risen, while additional recuperation has set in those Iccalities where the market value of crude o1l has approached nearer to the production cost than it has been since the early part of 1930. Commercial reports from the South lately have been decidedly optimistic, contrasting sharply with those of a year ago. So far there has not been much effect of these few pronounced commodity ad- vances on the general wholesale list. ‘When the downward momentum has continued so long and with such strength, it will take some time for the tide to change. This is truer of retail than of wholesale prices. In the former we have evidence again this week that |the swing is still to the advantage of the consumer. Bradstreet's figures today food index has declined nearly 1!, per cent from the week previous. During a month when prominent commodities bave been enjoyirg a spectacular rise, there has occurred a decline of 2.8 per cent in retail food quctations. This be | permits of the trading argument be- tween employer and employe that a reduction of modorate size in wages is amply compensated for by the lower cost of living. There have already been pronounced reductions in food prices and in those of wearing apparel, ‘The next readjustment, and the one that will complete the trinity of ad- vantages afforded the wage earner or the person with a moderate competence, is to come through a reduction in rents. Quite naturally throughout the country these hav:h ge:fln hu?d at a level which exrreucu Ining power on propert; valus in 1928 and 1929; not ?hag:e 0¥ today. The owners of apartment houses and office bui'dings in metropclitan cen- tors have adopted the same business philosophy 2s th unionized woriker who prafers to remain idle rather than to make the slightost concession from th2 union scale. This stubbornness on the part of the landlord is leading to an increasing number of foreclosures and receiverships and the consequent distress of a considerable body of bondholders. An easement in ~conditions where there has been acute strain apj this week. It has been visible the money market. Time loans and ac- (Continued on Third Page.) - [ political | show that in the past week the retail; MORNING, NOVEMBE iLD 1931, R 8, (Copyright, 1931.) (iassified Ads Pages 5 to 12 | BY DR. MAX WINKLER. | Special Dispatch to The Star. | NEW YORK, November 7.—The resig- i nation of Jose Maria Marulanda, Co- lombia’'s minister of finance, may be at- tributed to his insisting that Colombia emulate her neighbors and suspend pay- ments on external obligations. tion’s chief executive, Olaya Herrera, is understood to favor prompt maintenance of debt service, irrespective of the sac- rifices which the country may be called upon to make. With more than $300.- 000,000 invested in Colombia by Ameri- can interests, the suspension of pay- ments by the southern republic, if re- sorted to, will not be viewed with in- difference in the United States. ‘The expansion, or even the main- tenance, of the commercial relations between the United Stetes and the re public of Colombia will depend un- doubtedly upon the evidence of Ameri- ca’s southern neighbor to honor con- tractual obligations, and to respect the rights and privileges of creditors; upon the honest and sincere efforts on the part of Colombia to abandon unsound economic policies and introduce order into her financial house, and last, but not _least, upon the willingness of Co- lombia’s creditors in the United States to co-operate with the republic in a spirit of friendliness and equality, rather than one of hostility and guperi- ority. Co-operation Needed. Once there is definite evidence of gen- uine co-operation between debtor and creditor, the prospects of a return of confidence and normality in the econ- omic status of nations will be much more promising. ‘To be sure, one is not unmindful of the many errors which mitted by both borrower and lender within the past few years; nor is one unmindful of the sincerity with which such mistakes may be assumed to have been made. The fact, however, remains that Colombia permitted herself, or was permitted, to accumulate a debt, the full service of which, under pre- vailing circumstances, constitutes a de- cided burden upon the nation. United States investors are apprais- ing Colombia’s credit in the American market at 20 to 35 cents on the dol- lar. Such is the discount at which are quoted the various obligations of the republic, her departments, her municipalities and mortgage institu- tions. Is it not somewhat inconsistent if one expects 100 cents on a dollar placed in Colombia, when the latter's creditors put a value on it of only one- fifth or one-third? This situation doubtless is due to fear on the part of American investors that Colombia may cease Dlymen:fl;)n her contractual obli- tions altogether. "An it is within reason. to assert that Colombia does not wish thrown against her the stigma of default and as the country’s creditors are just as anxious for Colombia to maintain her good name 2nd prestige among the nations of the world, it would seem that there is only jone path which Cclombia can choose. ! She must do her utmost to continue to pay interest on her contractual obliga- ticns with the promptness and punctu- ality which have characterized her pol- ijcy for many years, and if temporary aid is required it should be extended, as was done in the case of & number of European debtors. The United States owes that much to her neighbor, unless she feels that the dollar invested in is sacred Europe more to American bankers than the dollar placed in Co- lombia. If it should not prove feasible to aid the republic at a time when aid is most needed, it may become neces- sary to permit Colombia to pay, with respect to her debt, whatever she may be able to do without completely under- mining her economic structure, but no change should be effected until the uestion of capacity is definitely deter- i mined. - Sinking Fund Payments. mbia's créditors might, however, mn?z one concession and thai is an agreement relative to the suspension of all sinking fund payments for a period of five years, with Colombia reserving the right to resure amortization at an earlier date. The nation’s creditors might further arrange for Colombia's fiscal hgents to utilize amortization funds, in the future, for the purchase of bonds in the open market, rather than, as seems to be true of many Co- have been com- | IPLAN TO MAINTAIN COLOMBIAN DEBT SERVICES IS SUGGESTED lombian issues, through drawings by lot at par, irrespective of existing loan ar- rangements. Thus, it should be possi- | ble to do away with the very disheart- ening spectacle of having a bond paid off at par, while the market quotation is around 15 cents on the dollar. As to the department and municipali- ties, as well as mortgage institutions, it might be desirable to subject their external obligations to a careful analy- sis, with a view to determining the cir- cumstances under which loans may have been contracted, the terms on which they were made, the manner in which proceeds were utilized, as well as | take care of their indebtedness. On the basis of such study, it should be possible to effect such adjustments as may seem desirable and expedient. suspension of sinking funds should ap- ply also to the obligations of the depart- | ments, municipalities and mortgage banks. | In order that the above suggestions | may be effective, the request for their | adoption should come from the credi- tors, or whoever may agree to act on their behalf, rather than from the gov- ernment of Colombia, or the various political subdivisions. (Copyright. 1931, by the North Newspaper Alliance, Inc. RECOVERY IN STEEL OPERATIONS IS NOTED Industry Hopeful of Reversal in Decline as Pick-Up in Orders Occurs. ) American By the Assoclated Press. NEW YORK, November 7.—Moderate recoveries in steel operations occurred creases in orders and specifications placed and the trade is now hope- {ful that a reversal of the steady de- cline in production since last March may occur this month. Optimistic statements by leaders in the industry and recent advances in wheat, silver and other commodities have encouraged the industry. Ingot production advanced slightly for the second week to about 30 per cent of capacity, owing to slightly larger buy- ing of rails’'and miscellaneous lines. While structural awards remain small and operations of pipe and tube mills are light, the outlook is said to be for increased activity in the automobile industry. = Prices hold unchanged. Bet- ter inquiry has developed for pig iron at steady prices. A more cheerful tone was reported in copper owning to improved export buying, reports of increasing activity some domestic copper and brass rolling mills and expectations of further expansion in the coming week. Eiec- trolytic holds steads at 7 cents for delivery in the Connecticut Valley, with custom smelters supplying the demand. Consumers and dealers were more active buyers of tin for delivery in the next three months fol a period of restricted purchases and prices ad- vanced late in the week. Early de- clines in lead as a result of increas- infworfl receipts at smelting plants were followed by a moderately improved de- mand and the market has become steady. Resistance of sellers to accept further concessions resulted in a firmer tone in zinc and the market recovered part of its recent losses. late in the week. Demand, however, is restricted. Antimony was about steady. HEATING SUIT DROP-PED. CHICAGO, November 7 (Special) - Suit for infringement of patent brought against Jamés P. Marsh & Co., man- ufacturers of heating systems, by the C. A. Dunham Co., which has_ been three years in the United Court_at Chicago, has missed by consent of counsel, is is announced here. m%;;fl,elnfi: oll China’s exports i‘: = fiscal year were shipped the United fll"l.’ | the capacity of the various debtors to | The recommendation relative to the| in the past week, reflecting slight in-|aré CPUNFRGEGAIS REACH 00000 American Farmer Has Most Encouraging News Within Two Years. BY OLIVER SHERWOOD. | Bpecial Dispatch to The Star. CHICAGO, November 7.—The farm- er today ended his most optimistically eventful week in two years, with agri- cultural leaders now busy pointing out that the farm will lead this country back to prosperity. Tangible support for their conten- tion is provided in a $500,000,0"0 paper value addition to the four principal ! grain crops since the low prices estab- lished on October 5, With this im- provement has come relief to banks in agricultural areas, to insurance com- panies with huge farm loans, and to manufacturers and distributors selling to the agricultural population. Just how real has been the improve- ment of the past month is demonstrat- ed by a table of prices of grains, showing price quotations for October 5 and for November 5. , Following is the situation as viewed by the wheat farmer: Future contract— December ... May July change: Future contract— * Qct. 5. 38%c 36%c December My . 23¢ ?ac “Reasons for this aitered situation in leading agricultural commodities are found in world developments. These 1. Inability of Russia to continue last year’s record of exports, which to- taled 110,000,000 bushels, owing to slow farm collections, poor quality of wheat, and the need for holding grain until the threat of trouble in Manchuria is dissipated. Russia last week exported 1,100,000 bushels compared with 5,000,- 000 for the same week last year. 2. Crop shortages in Frante and Ger- many, where a wet harvest played havoc with ylelds and where a short potato crop complicates the foodstuffs prob- lem. Heavy foreign buying of American grain has been a recent feature. 3. Sales of 67,500,000 bushels of Farm Board wheat from the Stabilization Cor- poration holdings of over 200,000,000 bushels. This relieved the market of the fear of dumping. 4. Dry weather over the Winter wheat area, where the new crop has had a much less auspicious start than it re- ceived a year ago. Winter wheat acre- ngeli.s estimated to be reduced 15 per cent. 5. Partial failure of the Canadian crop, where 230,000,000 bushels were raised, compared with a norral 400- 000,000-bushel crop. Also a failure in our S| wheat belt, where scarcely 100,000,000 pared with a normal crop of 225,000,000 bushels. This accounts for $1.03 a bushel paid for premium grade amber durum wheat during the week at Min- neapolis. 6. Smaller acreage in the Southern Hemisphere, with the Argentine crop offic! reported 19 per cent smaller in acreage than a year ago. Adverse grow- ing conditions also are reported. ‘These developments indicate a changed world outlook in wheat. But trade au- thorities believe that the recent price advance has discounted all of the fa- vorable developments up to the present. Trey are inclined to attribute talk of collar-a-bushel wheat to the propaganda o!bincc\llltnn seeking to interest the public. Gains already made are of more than usual ¥rportance to the farmer. Trade statisticians advise that nearly 60 per cent of the 1931 crop still remains on farms, compared with a normal holding at this time of less than 50 per cent. Around 400,000,000 bushels of wheat alone is still available for sale by the farmer at the higher-price level now " (Copyright, 1931 bushels were grown, com-| BRITAIN WILL TAKE TIME T0 CONSIDER TS FSCAL POLCY London Financial Distriet Does Not Expect Immedi- ate Tariff Action. STABILITY IN DOMESTIC PRICE LEVEL IS SOUGHT Any Further Change in Monetary Conditions Will Depend on Foreign Events. BY LEONARD J. REID, Associate Editor - 3 Speciel‘Cable Disacch 1o The siny o™t LONDON, November 7.—After six weeks of political and economic drift- ing, the financial district hopes that the ‘ormation of a strong ncw cabinet is L1e prelude to concentrated government study of urgent policy and problems. It is taken for granted that it is Parliament’s determination to balance the budget, aided by effestive adminis- trative action on all necessary econo- mies. Given this-condition, tenporary declines in sterling are not a matter for serious concern or one requiring emer- |gency tariff action to check the so- | called dumping. Propaganda Discounted. Protectionist press propaganda alleg- ing abnorral imports is heavily dis- counted and in any case the deprecia~ ticn in sterling is a sufficient barrier against the flood. The general impres- sion in the financial district is that future fiscal policy will be a matter of long deliberation by the government, which is unlikely to impose an im- provised tariffl. On the contrary, the weighty influence of the best expert banking opinion is emphasizing that such action by Great Britain would in- tensify the already growing paralysis of international trade. The longer view. according to ma- jority opinion in the financial district, is that British monetary policy is de- pendent on developments abroad. It is agreed thet it is desirable to do the ut- most to limit unsetling fluctuations in exchange reserves the only practicable mearts in pursuit of this aim is the maintenance of maximum stability in the British internal price level. Premature revalorization of sterling would be a most perilous policy. since in the first place failure to support it at the selected figure would be disas- trous to British credit; in the seccnd place, the consensus of banking opine | fon holds it inadvisable to tie the Brit- i ish price level to gold until full assur- ances are given that the causes which led to the 1921 breakdown—namely, reparations, international debts, tariffs and French economic nationalism— are removed. In the meantime the maintenance of a 6 per cent Bank of England dis- count rate and a stiffer market bill rate reflect the intention of the author- ities to check absolutely the slightest tendency toward inflation, leaving .he pound to find a level adequate to cor- Tect the import and export balance of payments. Quiet Period Indicated. Trade centers report further prog- ress in textiles, but it is uncertain how far the bigger inquiry for coal, iron and steel will crystallize into actual orders. Railway traffic is slightly bet- ter and a slow reduction in unemploy- | ment continues. ; ‘The reaction in gilt-edge issues was partly profit-taking and partly a mis- |taken analogy to falling exchange. | The market was unusually narrow, wita jlarge interests waiting to come in after a possible further fall. The market expects substantial activity in gold mines as soon as South Africa leaves the gold standard, which now appears to be inevitable. Other mines are held back by the uncertainty in the com- modity outlook and the price of sterling. The general tendency to mark time is expected to continue in the imme- diate future in most sections, with a steady hardening of tone for further recovery, provided there is no out- standing collapse abroad. (Copyright, 1931.) i | :\VIRGINIA SALES TAX PROPOSAL OPPOSED Suggestion for Levy on Tobacco Fails to Gain Committee Mem- bers’ Support. Speciel Dispatch to The Star. RICHMOND. Va., Novorber 7.—The sales tax on tobacco mentioned by H. F. Williams of Fajrfax County as one of the suggested methods of increasing the revenues of the State, when he ap- peared with a delegation before the Legislative Budget Committee, seekin the indorsement of the $2.000,000 ap- propriation for public education, to provide for a nine-month school term in all counties, is not received with favor by at least two members of that body, who were quick to express their opinion. J. Sinclair Brown said that the result of such a tax would be that the manu- facturers would most certainly cut even the low prices they are now paying to the producers, which would hurt the to- bacco growers of Virginia. Senator W. A. Garrett, who lives in the tobacco belt, declared that he would be afraid to go back home if he voted for such a tax. Of course, it is realized that any seri- ous consideration of a sales tax on to- bacco would raise a storm of protest, though it would yield more revenue than the combined tax on amusement tickets, soft drinks, cosmetics and bill- boards, which Mr. Williams mentioned had been discussed at a recent meeting held under the auspices of the State Association of School Trustees. > Gov. Pollard said that figures on amusements tickets, soft drinks and bill- boards had been compiled and investi- gation had shown that combined they would not bring more than $1,000,000. He admitted that a tax on cosmetics had not entered into his calculations. SALES SHOW GAINS. Store sales of Grand Union Co. for ; the four weeks ended October 31, 1931, were $2,673902, comparing with $ 812,319 in the corresponding four wee’ of 1930, an increase of $61,583, or 2.19 per cent. Tons of merchandise sold increased approximately 19 per cent. SEWING MACHINE NET. White Sewing - Machine Corp. and subsidiaries report for nine months ended September 30, 1931, net loss of ‘Iw“l,lJT. after wlh:h'flm depreciation, etc., loss of $252,% 164 for correspon period of 1920,