Evening Star Newspaper, November 29, 1931, Page 71

3 News of Markets Pages 1 to 4 —_— Part 6—12 Pages FINANCIAL AND CLASSIFIED The Sunday Star WASHINGTON, D. C, SUNDAY MOR e G, LOGAL APPLEANTS SEEK VACANT SEAT ON LINTYPE BOARD Mergenthaler Director Likely to Be Chosen From D. C. Stockholders. EXTENSICN OF BRANCH BANKING IS ADVOCATED Ponds Extra Active on Exchange Here—Christmas Savings Clubs Open Tomorrow. BY EDWARD C. STONE. | Wide interest is being man: ‘Washington in the ec i director to fill the vacancy on the Mer- | ganthaler Linotype board caus>d by the | dcath of Edward J. McQuade. As more than one-third of the company’s stock eld by local investors, it is considered most certain that a Washington man will be selected During the past week sevoral Wash- fngtonians have expressed a_desire to Ferve on the board It would be prema- ture, however, to'mention any names. Tt is quite possible that the selection may not be made from any of the pres- ent candidates, at least not until the matter has been given considerable thought For years Washington has had two Tepresentatives on the Linotype board. At the annual meeting a few days ago, Frederic D. McKenney of Washington was re-elected a director, as well as vice president and general counsel of the company. The other directors include Albert H. Sawyer, Ogden L. Mills, Norman Dodge, ©Ogden M. Reid, A. Hungerford Pollen, Joseph T, Mackey and Roy C. Gasser. Among the officers are Norman Dodge, president: Joseph T, Mackey, executive ~ice president and treasurer, and Wil- Qiam W. Welsh, secretary. Stockholders Meeting Likely. It is expected in the local financial district that a meeting of the Wash- 4ngton stockholders in the company will be called soon, in order to give them the ichance to agree on some shareholder to represent them on the board. Such a move will insure harmony in the selec- tion and be of considerable value to the | directors in filling the place. Several years ago the Washington shareholders in Mergenthaler had an fctive organization. When there were no vacancies on the board, there was little for the stockholders to consider at | meetings and the association became in- | active, It now looks as if it would be revived long enough to assist in the «choice of a director. Coples of the annual report have ‘been stiidied with much' interest during the past week. Business conditions hit the company's order book rather severely during the 12 months, but the concern 1is in an unusually strong cash position. “It was natural that there should have been a decreasing demand for the products of the company, with 2 corresponding shrinkage in income,” Mr. Dodge reported. One paragraph of his report has mroused especial interest among local stockholders, this being what the com- pany expects to do next year with new Pproducts or inventions which the firm will have on the market. Would Extend Branch Banking. Steady extension of branch banking 4: advocated by Gaines T. Cartinhour, w0 has written a book on “Branch, | Croup and Chain Banking,” published | by the Macmillan Company. The | anthor, assistant professor of banking and finance in New York University, discusses at length the control of groups, chains and branches, a matter which looms before Congress in con- nection with the possible changing of e of the provisions of.the. Pederal erve act. “Whatever may be the arguments &gainst branch banking in other re- spects,” Prof. Cartinhour writes, “the .economic worth of the system as a means toward the betterment of bank- irg facilities on a more widely ex- tended scale is not likely to be ques. tion It would seem that the ten- dency, apparently inevitable in the face ©i the economic changes being brought | about throughout the country, would call for Subjugation of local pride and assumption of a broader viewpoint— one that is national in scope.” In conclusion he says: “It is prob- able that when Congress acts in the matter it will adopt legislation far more radical than would have been thought possible two or three years ago, While the outstanding problem is the «:tent to which branch-banking powers ould be permitted by national banks, | is_likewise concerned with changes 11 chain and group banking, with a view to determining what Federal en- actments, if any, should be adopted with reference to these instruments to banking concentration.” The writer quotes the controller of the currency as saying: “If the rate ©i increase in the next 20 years equals that of the last, by 1948 the aggregate banking resources of the United States will exceed $240,000,000,000.” ecast should be reasonably accurate, s Dr. Cartinhour, then it appears ve are facing a genuine development in banking concentration, In his opin- jon, under most conditions, branch banks, rather than group banks, will b the best for the country. 1932 Christmas Clubs Starting. Thirty-one Washington banks are etarting their 1932 Christmas Savings Clubs tomorrow, the membership en- sollment period to last until the middle oi January. The goal this time is more than 100,000 members and subscrip- tions of more than $8,500,000. One more bank has joined the Christmas_club ranks for the coming year, the Liberty National. has had $1,000 and $2,000 savings clubs for years, but is now adopting the planas carried on by the other local banks, which handle weekly sums from 50 cents up to $20. The $1,000 plan i a trifle too strenuous for the ma- Jerity of club members This year's funds from the 1931 clubs will be distributed in a few days and every member will be happy with the added holiday funds. The banks in towns adjacent to Washington had ifested in t Linotype Head FORMER WASHINGTON MAN 1S RE-ELECTED. NORMAN DODGE, Who has been returned to his post as president of the Mergenthaler Linotyp~ Co., “which position he has held for many years. He has an cxcellent busi- ness record. The compan: very widely heid in this cit; FINANCING OF HOME WILLBE DISCUSSED Hoover Conference Here Is Expected to Attract 2.000 Delegates. BY WILLIAM LEE. ‘Within the next few weeks more than 2,000 men and women, representing every State in the country, will flock here to attend President Hoover's Con- ference on Home Building and Home Ownership, which will hold its opening session next Wednesday. For more than a year the 25 commit- tees appointed by the President to or- ganize and prepare for this conference have gathered from every community within the borders of the United States all pertinent facts and statistics which can aid them in drafting a program designed to improve housing conditions and to facilitate the financing and con- struction of new homes. The President himself is primarily interested in the financial problems which arise in accordance with home building, and he plans to ask Congress when it convenes to set up & system of credit institutions designed to liberalize the terms upon which the prospective home owner can obtain funds with which to erect a dwelling. The work of the President’s confer- ence will not, however, be limited in any way to the field of finance and credit. ~Almost every problem which arises in accordance with home owner- ship will be reported on by a committee which has devoted more than a year to the study of each of its phases. The first general session of the con- ference, which will be attended by more than 500 real estate and buiiding op- erators from New York State alone, is to be held on Wednesday night, when President Hoover will deliver the open- ing address. Several correlating committees will devote their time to assembling the work of the other individual groups and will also attempt to draft a compre- hensive plan for rendering effective the | conclusions and recommendations of the i special committees. In a large measure the success of the conference will depend upon the man- ner in which individuad real estate men, contractors, architects and private bankers receive the suggestions of the conference. A program of State and municipal legislation will also doubtless be recommended, while some national | legislation may be expected, particularly | in respect to the matter of financing | construction. ‘The conference will adjourn on Sat- urday. (Copyright. 1931) COPPER QUOTATIONS ADVANCED SLIGHTLY Buyers Still Hold Aloof, However, Despite Report of Curtail- ment Agreement. By the Associated Press. NEW YORK, November 28.—The copper market remained at andstill today, but quotations were advanced. Pending more definite information regarding the reports from abroad of a change in the attitude of Belgian pro- ducers toward the curtailment plan urged by British and American pro- ducers, buyers held aloof. The quoted prices for domestic ship- ment were purely nominal, but ranged from 6'; to 6% cents a against the low record of 6'; reached earlier in the week. Offerings of metal pound, as | at 6 cents, however, were said in the trade to be extremely scarce Some cus- tom smelters withdrew from the ma ket entifely, and the large producers remained out of the market, as they have for some time. Copper Exporters. Inc., continued to quote the metal at 7 cents a pound, ¢. 1. 1., European base ports. ferred—10 at 931%; 10 at 93%; 10 at 1 931, ‘Washington Railway & Electric 4s— $1,000 at 86; $1,000 at 86; $1,000 at 86; $1,000 at 86; $1,000 at 86; $1,000 at 86; $1,000 at 86. Washington Gas 55—$1,000 at 100; 51, per cent pre- ferred—10 at 106%; 2 at 106%. Potomac Electric 6 per cent preferred unusually large clubs this year and much of this money will find its way 4into the tills of local stores. The year's foresight and thrift are now furnish- ing the gold which Santa has to have before he can travel very far afield. Local Bonds Unusually Active. Local bonds were unusually active on the Washington Stock Exchange Vesterday, the following sales around Tecent price levels being reported: Potomac Electric Consolidated Bs-— $1,000 at 1013, Washington Gas 6s “A"—$1,000 at 100 < Electric Consolidated 55 AC | 81,000 at 10134, | ¥ itiagion Halway & Eeatric pre- —5 at 110%. Notes in Financial District, Dallas D. L. McGrew, until recently counselor for the Japanese embassy, | g has joined Loomis Sayles & Co., Inc., investment counsel, of this city. At a meeting of the board of direc- tors of Sa-Lax Corporation, held at the local office, the board voted to increase the dividend rate from 7 per cent to 12 per cent per annum, payable to all stockholders of record of November 15, on December 15, Secretary C. M. Hop- kins announces. American Tobacco Co. declared the regular quarterly dividend of $1.50 on the preferred stock, payable January to stock of record Dece) 0. STOCKS LOSE GAN OFLASTMONTH OROP DURNE VK Wall Street Steeped in Gloom as Securities Values Hit Toboggan. SENTIMENT IS HBPEFUL OUTSIDE OF NEW YORK Forecasts of Better Business and Rising Markets Freely Made in Other Sections. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, November 28 —It must be said of markets for securities that they have lost all of the ground gained | during October and in the first week of November. For the sidth time in the past two years stocks have broken through what had seemed to be the final point of resistance, where their market value, relative to that precedent, had given them something of a “bar- gain” quality. Fortunately, sentiment outside of Wall Street has not been tuned so closely to the fluctuations in the mar- ket place as it was two months ago. In portions of the country there is a dis- tinctly better feeling and a willingness to go ahead after standing still so long. The very cheapness of securities and cammodities, the liquidated condition of Wall Street as reflected brokers’ loans, the low inventories and the strong cash position of many corpora- tions, the attractive price level of man- ufactured articles and the necessary re- placements after two years of living on the surplus stocks carried over from 1929 justify the increasing number of forecasts of better business and stronger markets next year. ‘Wall Street as Barometer. It is easier to sense an approaching change at a distance from Wall Street than where one's feelings and actions must be influenced by the daily spec- tacle of a great depreciation in the quoted value of the highest as well as the lowest grades of securities. It is always a question how far Wall Street accurately reflects the true state of af- fairs outside of its own boundaries. Many persons believe that if the doors of the New York Stock Exchange were closed and the policy adopted of for- bidding the daily publication of prices, in vogue in Berlin for over two months, there would be a more confident feeling everywhere. This is a debatable ques- tion. It came to a test on the morn- ing after Great Britain went off the gold standard, when the governors of the exchange rightly decided to main: tain a market but to prohibit those fictitious operations that would exag- gerate the nature of the crisis. If it is necessary completely to liquidate the situation before its health is restored, the sooner this is effected the better, even though the process is a painful one. ‘The investing public is not buying stocks because it has lost so much money in them, even from its frequent purchases since the low levels of No- vember, 1929. The speculative public has for some time reversed its normal process and is selling stocks “short.” It has the same enthusiasm for the bear position today, after a deflation un- equaled in any panic in 50 years, as it bad for the same stocks when they were at record heights two years ago. This swing from one extreme to an- other is an evidence that securities are in a buying range. Two Cases Require Remedies. Definite improvement in securities is dependent to at least 75 per cent on such remedies as may be applied before the end of the year to a betterment in domestic railroad credit and to an ad- justment in the German debt situation. So long as these two sores remain un- healed they will affect the entire body of national and international credit. The tragedy of it is that both have to be prolonged in order that men may play their petty game of politics. The business world comes to nearly a halt, millions of wage earners lose their jobs | and tens of thousands of security own- ers their income, while private and pub- lic interests trade back and forth be- hind the scenes and, in the process of trading, utter sentiments that they do not believe. It is known to be a fact that last week’s conferences between the railroad executives and the representatives of the railroad brotherhoods were carried on in a spirit of great friendliness and with a sympathy that never before had been expressed by each side of the controversy for the problem of the other side. Yet tho announcements that were published Monday suggested an irreconcilable difference. between the two and the opening of a bitter wage war between them. Likewise, Premier Laval of France, in order to satisfy his constituency and to hold his office, returns home after his_conference with President Heover and puts out a proclamation not at all in harmony with the spirit of the interviews here and probably not what will be substantiated when the final agreement with Germany is effected. Strong Spots in Industry. ‘There are many strong elements in dozens of corporations whose securi- ties have no support that might well be exploited without hurting the dignity or upsetting the traditions of corpora- tions and banking houses that had plenty to say in favor of these securi- ties when they were three and four times their present prices. More leaders in_corporation and institutional life might well follow the example of Presi- dent Willard of the Baltimore & Ohio who, whenever an unfair and inaccu- rate attack is made on the railroads, promptly hits it on the head and gives the public a true sct of facts. It is better to err a little on the side of optimism, after two and a half years of industrial reaction, than to remain mute for fear that 100 per cent of & forecast may not be realized. Compared with the average of stock prices on November 9, that of the in- dustrials has since declined 23 per cent, of the railroads 30 per cent and the public utilities 20 per cent. For three weeks there has been almost no interruption in the downward direction of stocks and bonds. It is a strange and mystifying situation. There are fewer bank failures each week than in ood times. Thus the factor of insti- tutional selling that unnerved Wall Street some weeks ago has been re- moved. In railroad shares it has been to some extent replaced by a deep ap- prehension on the part of theff holders over the future of the entire steam transportation industry. So we have leading stocks like Pennsylvania selling this week at the lowest price since 1877 and New York Central, & Nashville and othiers at f) with | which the older men of the present Wall Street generation are not familiar. In no other department of the market [ | WHEN \ B\TE IT COULD EM, THERE AWT NO MORE! X ARSI W S N | | [ OVEMBER 29, 1931 "BE A LOT WORSE HEAVY DROP IN Cabled’ trade reports received last week from Gerrany by the Commerce Department werc not encouraging. Its rayon industry reported a sharp de- cline, the department was informed, and employment and department store | sales showed heivy reductions. In summing up the business situ- } ation there, the Gepartment issued this { warning as to credits and collections: “The credit and collection situation is the most difficult since the stabili- zation of the German currency. Owing to the financial crisis and the restric- tions on payments on the part of banks, business men temporarily have lost. the full disposition of their bank accounts, and collections of outstanding accounts is seriously hampered. “While reputable firms make every | effort to meet their obligations as far as possible, a number of concerns take un- fair advantage of the situation and suspend payments to the limit. As a result of the s>vere lack of working capital, the heads of prominent firms in the Dresden district are said to have personally called upon their customers to_collect outstanding accounts.” The Reich's gold reserve, according to sources outside of the department, has now fallen in American values to $247,000,000, as compared with $274,- 000,000 a montn ago and the high point of $653,000,000 1t the end of 1928. Loss in Reserves. The week's aggregate loss of Te- serves, 72,000,000 marks, was the largest since September. The Reichsbank as- cribes this drain of reserves, which has been uninterrupted since September, partly to evasions of foreign currency ordinances, but mainly to the unsatis- factory working of the Basle agreement. That_agreement, according to Berlin dispatches, required repayments of credit beyond Germany’s power. In fact, as one correspondent views it, the agreement ignored the Layton Com- mittee’s recommendation that the vol- ume of foreign ciedits then outstanding in Germany should be maintained. The feeling now e<ists in Germany that more prolongation of the Basle agree- ment after February will not of itself be adequate. At the time the agreement was con- cluded Germany expected her repay- ments to foreign creditors would not ex- ceed 200,000,000 marks monthly. The Reichsbank now calculates, however, that since September there has been re- paid, including interest, 942,000,000 i marks or nearly 400,000,000 per month. | The Reichsbank does not admit that any serious flight of capital is proceed- ing, but it holds that importers are not making full use of the reimbursement, credits which foreign banks are o'blige by the Basle agreement to give. The importers, fearing losses by unforeseen fluctuation of foreign currencies, assert they are taking advantage of the agree- ment because they are forbidden by the currency ordinances to insure them- selves against such risk by buying foreign exchange. ‘The Berlin representative of the Commerce Department reported the de- mand for rayon on the German market GERMAN TRADE SHOWN BY COMMERCE REPORTS | decreased during October because of the economic crisis in the country. Con- sumers have restricted their operations to calling for delivery of quantities con- tracted during the Summer months, and manufacturers were able to close very few large deals, according to his cabled report. “Abolition of the gold standard in England,” the department's correspon- dent explained, “enabled the British textile industry to dump lange quantities of its products on the world markets. A number of countries that were form- erly good customers of the German tex- tile industry adapted their currencies to that of the United Kingdom, so that the German textile industry can now effect sales in these countries only at very insufficient prices. “Furthermore, quite a number of German rayon consumers | considerable losses through old con- | tracts that were cflected in British or | Danish currencies. The difficulties en- | countered by the German rayon con- | sumers also reacted on the producers.” It was reported the smaller domestic demand is also to be noticed in the decline in imports. Imports of rayon yarn, which averaged roximately | 1.3 million kilos per month in the pe- } riod from April to July, 1931, dropped to an average of about 800,000 kilos In August and September. As the shortage of foreign currencies in the German Reichsbank has been reported as be- coming worse, the department was ad- vised, it is quite likely that imports of rayon yarn will become still smaller during the next few months. Employment Reduced. ‘The number of industrial jobs in Germany which were filled was reduced from 51.4 per cent in August to 50.1 per cent in September, the number of working hours from 44 per cent to 433 per cent, according to offie cial German figures received by the department. These figures, it was ex- plained, are based on an arbitrary standard set up by the Government statistical office estimating the number of jobs and hours to ve worked when industry is running at full capacity, so that these figures mean per cent of capacity, According to the Assoctation of Ger- man Department Stores department | store sales in Germany in August and September have fallen off beeween 15 and 16 per cent, as compared with the same months & year ago. Sales in food- stuffs are 12 to 13 per cent below, cloth- ing from 17 to 19 per cent. The reduced sales in foodstuffs can all be traced to the reduction in prices. The amount of food s0ld was the same in quantity, but in case of clothing | price decline does not entirely make up the loss. Women's and children’s clothes, | shoes and cotton goods were sold in | much smaller quantities, while men's furnishings, knitted gooas and woolen cloth were sold in about the same quan- tity, but at lower prices. Futniture and kitchen ,utensils were sold in somewhat lower quantities; the reduction below last year was 15 per cembin August and 23 per cent in Sep- T, —_— tem has such a change in values occurred as in that related to the carriers. If we take a group of 25 prominent com- mon or capital stocks we find that, in 1929, they sold at an average of $155 a share. Several of them, such as Atchison, Union Pacific,c Norfolk & ‘Western and Chesapeake & Ohio, reach- ed nearly double the general price level. Even as late as the Spring of 1930, after nearly six months of falling revenues, the average of this same group was $130 a share. Then it began to drop gradually and, as in the past, it gave the cue to the rest of the market. Last June, at about the time the car- riers were petitioning for a 15 per cent increase in freight rates, the average stood at $56 a share. This week it was close to $31 a share. The decline has gained in momentum with the reduc- tion and omission of devidends. The international money situation has been disturbed at the end of the week by a break in sterlingto about $3.50. Money here is easier, which will give the Treasury Department an advantage in promoting another huge issue of notes on December 15. These will have to be priced above the market rather than, as in the past, below it, in order to receive a satisfactory response, (Copyrisht, 1931.) - Home Ownership . Advertising Drive Is Urged at Once | Spectal Dispatch to The Star. NEW YORK, November 28.—“Only by an immediate advertising campaign can brokers, developers and builders stimu- late public desire for home ownership and thus do their share toward foster- ing new construction and relieving un- employment in the 32 major building industries,” Charles D. Fiske, president of a firm of Westchester realty brokers, said today. “Concerted nafiondl advertising will increase the number of potential home buyers,” Mr. Piske declared. “Only then can we inaugurate the construction pro- gram for which President Hoover has called. We must create the demand for homes before we construct them, or we shall throw thousands of new homes on an overloaded market.” sustained INVESTMENT BOND DECLINE IS SHAR Fixed Income Securities Reg- ister Heavy Losses Dur- ing the Week. Special Dispatch to The Star. NEW YORK, November 28.—Al- though marked by a comparatively small volume of trading, with the Thanksgiving day holiday giving pause to the market, this week has witnessed the sharpest depreciation in bond values of any week since the begin- ning of the bear market. Compara- tive figures are not available, but it is extremely doubtful if any week in any previous depression had such a dras- tic revision of prices for fixed income securities. During the week Standard Statistics’ index of 60 bonds dropped a full 3 points, which—taking the New York Stock Exchange's compilation of total bonds listed as a gauge—meant a de- preciation of $1.500,000.000 in listed bonds, with all other bonds probably losing an equal amount. Redlroad Bonds. In railroad bonds the idex dropped 6 peints, a depreciation of $648,000,000. There is a total of $10,827,957,360 par value of railroad bonds listed on the New York Stock Exchange. At the end of this week this group was valued at_$7,230,000,000 in the open market, a figure more than $3,000,000,000 lower than the same bonds were valued as recently as last March. Selling was not in heavy volume. Daily sales ran from $4,000,000 to $5,- 000,000 under October’s heavy trading. The price declines could not, therefore, be blamed on any new flood of liqui- dation. The truth was that the Octo- ber optimism that saw a vastly im- proved market for railroad bonds as the result of a promised business re- covery had evaporated in the face of October earnings reports, new crisis abroad, and the refusal of the railroad unions to submit voluntarily to 10 per cent wage reduction. When one of the large statistical services announced its intention to revise the ratings of many carrier bonds drastically downward, the last obstinate bidders for “‘bargains” carrier issues withdrew and the market was -left virtually without support. Seasoned rail bonds such as New York Central 41;s, Southern Pacific_4as, Northern #acific 6s and Rock Island Refunding 4s lost 4 to 8 points on the sale of a handful of bonds. Other Factors. Meanwhile high grade securities were depressed because of other consider- ations. In December the Treasury must raise approximately $1,500,000,000 in order to meet bill and certificate ma- turities and tide the Government par- tially over its deficit. United States Government long term issues declined on Wall Street’s opinion that Secretary Mellon will hardly be able to do better than sell about $500,000,000 of 3 to 5 year notes—probably carrying a 3% to 334 per cent coupon—and $1,000,000,000 of one-year certificates of indebtedness to be sold on a discount basis, probably around 2'; per cent. ‘This unsettled prime corporation is- sues and municipals, all of which moved down 1 to 2 points during the week. They, as well as governments, were additionally weakened by the pres- from a declining stock e form of margin calls. The new capital market was idle again, the week's offerings aggregating only $12,466,920, all municipals. This compared to $13,954,400 in the previous week and $46,874,000 in the same 1930 week. (Copyright, 1931.) —_— Plant Operations Increased. NEW YORK, November 28 (#)— Several large orders obtained by the Globe-Wernicke Co. within the past few weeks have resulted in operations in the company’s Cincinnati plant being increased to full time. Henry C. Yelser, {:, prsnl?fint, said that the txack}ol wg sure time oparation for four five months. 4 Classified Ads Pages 5 to 12 IDEBT SETTLEMENT | IS MAJOR PROBLEM OF WORLD FINANCE Adjustment of German Obli- gations Held Necessary to Economic Recovery. lU. S. IS NET CREDITOR IN REPARATIONS SET-UP Total of $27,500,000,000 Is Still Owing to Allied Coun- tries. BY DR. MAX WINKLER. Special Dispatch to The Star. 2 NEW YORK, November 28.—It is becoming increasingly evident that Ger- many constitutes the crux of the entire international financial and economic situation. An adjustment of German debt problems, involving both political and commercial obligations, is a pre- requisite to economic rehabilitation, not alone of Europe, but of the world. Two committees have been named to investigate these questions with a view to determining the capacity of the Reich to adhere to the provisions of the various loan contracts. Should it be found desirable or necessary to reduce German reparations payments, the affected creditors would in all likelihood insist upon a corresponding reduction in their debts to the United States. Analysis of the entire problem per- taining to reparations and inter- government debts reveals that Germany is the net debtor and the United States the net creditor. Partition of Payments. On the basis of the provisions of the Young plan and the funding arrange- ments between the various allied powers and the United States, the following payments are scheduled to be made: Germany, as matters stand at present, will pay a total of about $27,500,000,000. France is scheduled to receive a total of $14,500,000,000. Her payments to her creditors aggregate $10,800,000,000, leav- ing a net_balance of $3,700,000,000. Great Britain will receive $10,800,- 000,000, and will pay out $10,000,000,000, retaining $800,000,000. Italy's receipts total $4,100,000,000; her payments to creditors absorb about $3,900,000,000, leaving a net balance of $200,000,000. FOREIGN ECONOMIC OUTLOOK AFFECTED BY TARIFF ACTIONS Manchurian “Incident” Ex- ‘pected to End With Inquiry by Neutral Nations. NEW COMMODITY PRICE DROP DISTURBS TRADE First Application of British Duties Has Little Effect on United States Exports. Special Dispatch to The Star. NEW YORK, November 28.—Cable and radio dispatches to the Business Week give the following survey of bus] ness abroad for the week ending toda The Manchurian Crisis.—A cabinet crisis in Tokio was added this week to the long list of uncertainties affect- ing Far Eastern business. China still fails to present a united political front, which has strengthened the world's de- termination that “China’s responsibil- ity” to negotiate as an entity remains to be investigated. It seems likely now that the Manchurian “incident” will end sooner ar later in a thorough inves- tigation by neutrals, which will prob- ably be the best way of acquainting the world with the Far East and will even- tually benefit all business. Paris.—The new breakdown in com- modity prices, the veritable orgy of in- ternational tariff making, the continued slackening of internal productivity, and increasing demands upon the already- strained budget—all are depressing {business and the Bourse. Prices there- on are rapidly approaching the year's lows. ¢ Exports Expand. October foreign trade, like that of most other countries, showed a slight expansion of exports. The deficit of $24,000,000 is the lowest since March, 1930, but is primarily due to heavily restricted imports of rawstuffs; the 10 months’ foreign trade deficit of $420,~ 000.000 is a record, and compares with last year's already exceptional $300,- 00%3001 unhl:g;lrhla l:lllhuA reign plays an important part in the economic xtructurep:! the country. Many of these foreign work- ers cannot be exported without great inconvenience. Workers in the coal mines are almost entirely recruited from foreign sources because French The other powers, including Poland, Rumania, Jugoslavia and Czechoslovakia, are scheduled to receive $3,800,000,000, and to pay out about $2,100,000,000, thus retaining $1,700,000,000. The United States will receive a total of about $22,000,000,000, provided, of course, payments are made in accord- ance with the various plans which have S0 far been devised. Transfer Problem. It has been maintained that the total payment due the United States repre- sents only a small percentage of the budgets of the respective debtors and that very much larger sums are ex- pended in connection with the mainte- nance of armies and navies. While one does mnot advocate the spending, or rather the waste, of large sums on armies and navies, such ex- penditure, it must be admitted, is the unfortunate but inevitable by-product of modern civilization. It should also be remembered, however, that such ex- gandmlre is made almost exclusively at ome. while payments on account of foreijgn debts are to be transferred abroad. ‘The significance of the transfer prob- lem is obvious, not alone to economists, but to all those Americans, individuals as well as institutions, who own foreign securities of various categories, with re- spect to which they are being called uper:‘_' rather frequently to forego pay- ments. 4 It is also being held that suspension of payments on account of intergov- ernmental debts and reparations weould affect the nations as a whole, whereas default with regard to commercial debts ! will affect only a certain number of people who hold foreign securities and who are doubtless in the minority. “Foreign Investment.” In this copaection it should be point- ed out that term “foreign invest- ment” is distipctly a misnomer, and that because of the pronounced eco- nomic interdependence it is difficult, if not impossible, to segregate the so- called domestic investment from the so- | called foreign. If, as some maintain, it is ethically wrong to deprive coming generations in the United States of what justly be- longs to them, is it not, by the same process of reasoning, equally wrong to levy taxes on coming generations else~ where and call upon them to discharge a debt which their ancestors are ac- cused’ of having contracted?” (Copyright, 1931, by the North American Newspaper Alliance, Inc.) RETAIL TRADE GAIN REPORTED FOR WEEK Mercantile Reviews Find Evidences of Upturn in Certain Lines of Business. By the Associated Press. NEW YORK, November 28.—Some improvement in retail trade, giving evi- dence that holiday cheer is entering this phase of business, is reported in the weekly mercantile reviews. Dun’s finds that a few of the depart- ment stores in the New England States report volume up to that of a year ago. Men's cold-weather apparel is moving in a few territories west of the Missis- sippl River. In the Southwest confidence has re- placed fear to a large extent and busi- ness seems to be definitely on the up- grade. In the South nearly all lines of trade have improved, and an improvement in employment also has been noted with textile mills increasing their operations to almost 100 per cent during the last 30 days. Pacific Coast heavy rain- fall in many sections and snow in the Slerras have stimulated business in the fruit and farming areas. Bradstreet’s reports that retail trade has not suffered from the depression to the same extent as the heavy in- dustries, and that food stores every- :‘hemre have been active due to Thanks- ving. In New York City, the review adds, the shoe trade has been equal to last year, and freezing weather in the West has been a distinct help to seasonal lines and rains in several cities of other sections have benefited the sale of ap- parel and footwear. National City, 48%2; Comm workers are not easily adapted to this type of work. Berlin—Only long suffering gives Germany the equanimity to carry on with a show of fortitude in the face of gloomy events ahead. The couptry is ::ulm:ry me.re%o olb rl‘;s creditors, ‘but is g some order cth%uc n.mncec(. % = e relapse of world prices, the fresh crisis in Eastern Germany and the host of new tariff threats have discouraged leaders. The porcelain, glass and wool- en industries are dismayed by Britain's new 50 per cent anti-dumping duties. Importers, on the other hand, are faced with reduced allotments of foreign ex- change by the Reichsbank. Previous quotas are cut 25 per cent. October output of coal and steel showed a further decline, causing the Stahlverein to shift to & drastic con- centration of production in a few super- modern plants. With steel mills operat- ing at 40 per cent of capacity and exports making up 75 per cent of the outrut, only 10 per cent of capacity is working to sat home demand. London.—British enthusiasm ran away with the market last week, pushed stocks and general market optimism to somewhat unwarranted levels. Re- action this week, therefore, is to be ex- pected. The tone is still good. Activity 1;‘ &rocreum( at a generally accelerated Anti-Dumping Duties. At home, the first batch of Runciman anti-dumping duties has been well re- ceived. Abroad there is general con- gern over the new duties. The United gu'fis “0:]“ hard hi; in the,l:l:tl levy. antinental Europe, however, Iready feeling the effects. France is particu. larly upset. Britain is the country’s principal foreign market. Because feel- between the two countries is none too friendly, France is inclined to look on the new duties as being particularly ;!fi:bde at Paris, and threatens to re- ate. . In Poland, the shoe, clothing and woodworking industries are suffering from the new impost. For years large quantities of these products have been shipped to Britain, but the new ban is prohibitive, has actually caused the can- cellation of recent orders. Continental shipping interests are faced with British competition. At the depreciated value of the pound, British rates are roughly 20 per cent below the old rates established by organized ship- pers. ‘The extent to which the “Buy British” campaign has gripped the ingenuity of sellers and the imagination of the pub. lic is evident in the campaign now de- veloping to make Scotland s Winter playground. ONTARIO REPORTS GAIN IN.USE OF ELECTRICITY By the Associated Press. ‘The amount of electrical energy de- veloptd and utilized by the publicly owned utilities of Ontario has grown from 1,000 to 1,250,000 horsepower in 20 years. A report to the Commerce Depart- ment states the number of municipal- ities and townships served has risen from 12 to 668, the capital invested from :3,623.!0001“00 3359.“!,0’:;'.'. and the eserves have wn zero $103,857,683. s i In the last 15 years the number of consumers served has tripled and rates for current have more than halved. An extensive plan of rural electrification, begun nine years ago, is being com- pleted at the rate of 1,800 miles of transmissjon lines a year, and the On- tario government has recently appro- priated $2,000,000 to be loaned to farm- ers in order that they may take full advantage of the electrical facilities for light and power. NEW YORK BANK STOCKS Special Dispatch to The Star. NEW YORK, November 28—Bank and trust shares were dull and irregular today. Brcoklyn Trust at 230 was off 5, Chase National, 39%, off !,; Chatham- Phenix, 22, off 1; Chemical, 33%, up Continental, 171, off Y: Corn Ex- ff 3; Guaranty Trust, 296, 38, off 14; Manufac- New York The following were unchanged: Bank- ers Trust. 67, Central Hanover, %gg. First National, 2270, and Empire, 26; Public, 21, 3