Evening Star Newspaper, December 5, 1931, Page 13

LONSDALE AGAINST RESERVE CHANGES Banker Believes Time Not Right for Amendments to Banking Act. STONE. D Lonsdale. former Bankers' Assoclation, | bank president and a n the Federal Reserve does not favor any BY EDWARD € president g€ ral Reserve John D. Lonsdale, ispicion, and it would do anything that e high regard in which I A law-making hysteria is ys a dangerous thing, and it seems t would be extremely 1pt to amend the Fed- t as to the eligibility of t purposes at this It certainly canj liquidity, and even is desirable, the reasons refully studied so that such ht to be made will be con- ng a period of normal con- Federal Reserve act is & con- and changes in its pro- id be approached cautiously cy conditions can be met by emergency organizations, which during the emergency can supplement the existing facilities without the danger of weakening them. If at any time ex- periments outside of the system are found to be successful, then later, when calm, constructive judgment is possible, | the desirability of putting them into the | Federal Reserve act might be con- sidered,” the banker concludes Mr. Lonsdale's views are very highly | considered by Washington bankers, | many of whom know him personall Local bankers have recently been dif cussing the Federal Reserve act very | freely and predict it will be one of the | most important issues before the ap- proaching session of Congress Savings Reveal 80 Per Cent Gain. It is highly fitting in this year of de- | pression to turn to a similar one, the | year closing June 30, 1921, just 10 years American Bankers' Jour- As compared with that year, the and area now has gained 64 per inhabitant in saving de- posits, every State showing a gain. In the Middle Atlantic States the increase 18 more notable, indicailng a gain in excess of 80 per cent per inhabitant, in which ever In the Bouthern althougi not all the States in the area have an advance per | inhabitant over 1921, yet the savings per individual for the’ group has_in- | creased by over 16 per cent. The East | Central States go forward, as do_the | Pacliic States. In only the West Oen- | tral st a loss registered. i New Speculation Mania Seen. gy the world is now engaged in| epeculation as unreasonable and as un- | reasoning as during the bull market | ©of 1929 is the implication cf an item on hoerding in the current bulletin of the Alexander Hamilton Institute. Gold and currency, however, instead of com- modities and shares 'in corporations, are the favcrites of the present mania. Poi that bank deposits have decreased about 9 per cent since Sum- mer, against a normal seasonal tend- ency to increase, and that Federal Re- e notes have been increased to the astonishing percentage of 38, against a normal of about 3, the institute ques- er the full significance of s been popularly realized. | , When money was so Scarce that people were paying 8, 9, even 14, per cent for day-to-day ~loans, they were competing madly to exchange it for commo; i shares. Today, when cu abundant, the pub- lic is eagerly competing for it. This is speculaticn money, the bulletin says. Treasury to Redeem Notes. It is_announced that the United | States Treasury will redeem all out- | standing 3'. per cent Treasury notes, | series C, 1930 to 1932, on December 15. | This is a vepy important notice as in- | terest will cebse on these notes on that some times overlook re- tices and six months later lost half a year's in- d be remembered that | date on this series is | Twe Bankers Congratulated. \ ! were recelving | today on the | aday anniversaries. | president_of the 1 Bank and of the was one 1, president of the rporation, and <s0ci- bankers banker McCrory Reports Sales 2 in N 1 per cent totaled $36,- | $36.440.678 a 0.1 per cent 495, compared year ago B. & 0. OFFICIAL HITS RAIL REGULATION with a decrease of just more Bar tered his chal merce Com- that the ment of r impair- he declared ockholders and ¥ 42,000,000 ac- counts in savings banks and the value f the 60,000,000 or. more life insurance icies outstending ited out BETTER BUSINESS SEEN IN ATLANTA SECTION “Indications are that we have safely weathered the business storm, ani now are at the turning point. Atlanta has maintained a high position in the re- tail Bales curing the period of depres- sion,” J. P. Allen, president of the At- Janta Retail Merchants' Ascoclation and | head of the J. P. Allen department store | Tere, states “Our holiday trade is picking up,” | 28 124% 129% 1521 28y 86 14's 23w 513 90 204 203% 108% 120 23% 1315 64 ' 3 R7% 8014 | 107 1414 90 81 64 25 461 70% 1287 29 95 43 764 308 2% 5% 26 69% 4% 126% 15 207 347 5% 13 3214 113 2% 1% 69% 63 1% 16% 45 45% 1314% b2y 14% 13% 378, 26% 8% Bl 4 12 12 £6% 15219 18 8% Bl 107 124% 186% 43% 2% 784 he said, “and should swing into full| 47 activity within another week or two. “People are buying more sensible things and beginning to inquire for the better grade merchandise,” 26% 481y Ba% 12 THE EVENING NEW YORK STOCK EXCHANGE Received by Private Wire Direct to The Star Office, Bates— Dividend Rate Abitibl Pwr & Paper Adams Express. . Adams Exp pf (5). Addressograph (1).. Amiiated Prod 1.60. . Alr Reduction(t4%4) Alaska Juneau (40c) Allegany COrp...... Alleg Cp pf $30 ww. . Allied Chemical (6). Amerada Corp (2). Am Agri Chem(Del). Am Bank Note (2) Am Beet Bugar..... Am Brake Shoe(2.40. Am Brake Sh pf (7). Am Can Co (15) Am CanCoof (T)... Am Car & Foundry Add 00 4 11 28 10 107 Am Car & Fdy pf (1) 39 Am Comcl Alcohol. . Am Buropean Secur. Am & For Power. Am & For Pwr pf Am & For Pwr pf(7) Am & For Pwr 24 nf. Am Haw St'&hip (1). Am Tome Prod 4.20. Am Jee (2). Am International. .. Am La Fr&Foam pf. Am Locomotive. ... Am Lo'motive pf (7) Am Mch & Fdy 1.40.. Am Metal Co. Am Pwr & Lt of (). Am P&L! pf A st(5). Am Radiator (60c).. Am Radiator pf (1) Am Republics 3 Am Rolling M. . Am Safety Razor (5) Am Smitz&Ref (1%) Am Steel Foundry Am Steel Fary,pf(7) Am Susar Ref pf () Am Tel & Telex (9).. Am Tobaceo (16).. Am Tobacco B (16) Am Water Wks (3). Am Woolen Co . Am Woolen Co pf... Anaconda Copper. . Anchor Cap (2.40) Armour of Del pt (1) Armour of Ill (A)..e Armour of Ill (B)... Armour of Il pf... Arnold Constable. . .. 15 Associated Apparel.. Associated Dry G(1) Atch To&S Fe (10).. Atch To&S Fe pf (5) Atl Coast Line (4) Atlantic Refining (1) Atlas Stores (1). ... Auburn Auto (f4)... Autosales pf. . 215 Aviation Corp (Del). 5% Baldwin Locomotive 20% Baldwin Loco pf 22 Balto&Ohlo4)..... 31 Balto & Ohlo pf (4) 90 Bamberger nf (6%). 4% Barnsdall Corp'n. ... 65 Bayuk Clg 1at pf (7) 27 Beatrice Cream (4).. 1% Belding-Hemingway 12% Bendix Aviation (1). 24% Best & Co (2) . 22% Bethleham Stesl (2). 75 Bethlehem St pf (7) 7% Blaw Knox (50¢). 85 Bloomingdale pf (7) 3ohn Alumn (1%).. Borden Co (3).. Borg Warner (1). Briges Mfg (11%).. 4 Brockway Mot Trk.. Brockway Mot Tr pf Bklyn-Man Tran (4) Bklyn-Man Tr pf (6) Bklyn Union Gas (5) Brunsw-Balks...... Bucyrus-Erie. Bucyrus-Tirie cv pf.. Budd (EG) Mfg Budd Wheel (1), 10 Burrough A M(t1%) 8515 Bush Terminal pf(7) 1's Butte Copper & Zinc. * Butte & Superior. 12% Byers (A M) Co. 10% California Packing. . 25 Calumet & Hecla.... 714 Camp W&C Fdy (1). 14 CanadaDry G A (3). 11 Canadian Pacific 1% 384 C INDCo..uuuns 113 Caterpillar Trac (2). 2% Celotex Co 1% Celotex vto ctf 1015 Celotex pt. 15 Cent Aguirre ( 214 Century Rib Mills 974 Cerrode Pasco (1).. « Checker Cab Mrfg. Ches & Ohio (2%) hesapeake Corp(2). *hi Great Western. . Chi Great Westn pf. Chi Ml StP & Pac. .. M1l StP & Pac pf. « Chic & Northwstn. .. Chi & Northwestn pt Chi Pneu Tool pf. ... Chicago R 1&Pacific. ChiR1& Pac 6% pf Chi R1& Pac 7% pf. Chrysler Corp (1)... City Ice&Fuel (3.60) ¥ Investing (5)... quipment(1). abdy pt (1) R “oca-Cola (A) (3) ‘oleate-Pal-P (23 Columb Carbon (4).. Comm Credit (1.60). Comci Inv Trust (2) Comel Inv Tr pf 63 Comm Inv evpf(es). Comel Solvents (1). ou (30¢) ou pf (6) alrn (1). 8 (B)ies prpf e, Consol ¢ Consol ¢ 3% Consol F 7% Consol Fi 61 Consol Gas N Y (4).. 93 Consol Gas NY pf(8) 915 Consol Laundries(1) % Consol Textlle. ..... s Container Corp (B). i, Contl Baking (A). 31ix Contl Can (2%). 19'3 Con’ Insur (2.40).. 11 Contl Motors 415 Contl O11 (Del). 7 Contl Shares . 864 Corn Products (3). 128 Corn Prod pf (1)... 3% Coty Inc. . 10% Crex Carpet. . 24 Crown Cork pt 22 Crucible Steel, 2 CubaCo...i... 29 Cudahy Packing (4). 11 Curtiss Wrignt, 2 ¢ Wricht (A) Are & Hud (4). Del Lack & Wn (2) Detroit Edison (8).. 12's Diamond Match (1), 6% Dome Mines 1) 1T on Stores 11 21 Dres KA (3%4) 42% Drug Corp (4) 2'3 Dunhill Internatl 53 Dupont de Nem (4 101__Du Pont de N nf(6). 90'« Eastman Kodax (18) ngton-Schild pf.. ilec Auto Lite (4).. Jlectris Boat ilec&Musical Instru tlec Pwr & Lt (1) lec Pwr&Lt pf (7). ec Storage Bat (4) Fed Water Service A Fed Dept Strs (25¢). Fid Ph Fire In(2.60). Firestone T& R (1), Firestone T&R pf (6) First Natl Strs (2% ) Fisk Rubber . ub 1st pf conv er-Wheeler « Fox Film (A) 3l Freenort-Tex ( " Gardner Motor. ..... 382 Gen Am Tank Car(4) 9% Gen Asphalt (1) 14% Gen B 25 GenCIEAr (4)ce.osen 24% Gen Electrio (1.60).. 11 Gen Elec spec (60¢) .. o Y- I0E. { - PPN P » » esignated by letter “x.” et High. Low. Close Chgi - % +1% ~—1931— High. 6915 42 51 21% 3RY 31 57% 80% 1231 45 18 4078 10% 10 8% a9t 60 36% 143 44 193 1014 54 10814 30% Stock and Bales— Low. Dividend Rate. Add 00. 30% Gen Food Corp (3).. 17 244 Gen Gas&El A(e30c) Gen Milis pf (6). 14 Gen Motors (3) Gen Motors pf (5). Gen Public Servic Gen Ry Signal (5). Gen Realty & Util... Gen Realty & Utll pf, Gen Theatre Equip.. Gillette Saf Razor. Gillatte Saf R pf (8), Gimblel Bros pf (7).. Gildden Co. . Gobel (Adolf) Gold Dust (24) Goodrich (B F) Goodrich (B F) pf. Goodyear T& R (3). Gotham Silk Hoslery Graham-Paige...... Granby Con Min (1). Grand Unfon. Granite City Steel(2) Grant (W T) (1).... Great Northn pf(4).. Great Northn Ore(2) Great Western Sug Grigsby Grunow. . Gulf States Steel . Hahn Dept Stores. 80 Hershey Choc of (15} 124 Holland Furnace Co. 81 Homestake M (7.30). 3 Houdaille Hershey. . 52 Househld Fin pf 4.20 19 Houston O1l. 4 Houston Ofl 7% Hudson Motor (1). % Hupp Motos 10% Illinols Centri 1% Indian Motor Cycle 21 Indust Ravon (4) 364 Inzersoll Rand (4). Inland Steel (2 Interlake Iron. . In. Agricultur Int Bus Machine(n| nent (3) . mibustion Int Harvester (23). Int Hydro El A (e2). Int Match pf (4). (nt Merchant Marin, Int Nickel of Can 20¢ Int Paper & Pwr (A) Int Paper & Pwr (B) Int Paper & Pwr C. .. Int Printg Ink pf (6) Int Salt (3). Int Stlver. ... Iat Dept Stores (2) 10% Int Tel & Tel (1). 15'% Island Creek Coal(4) 24 Jewel Tea (14%5)... 18% Johns-Manville (1) 99 Jones & Lauch pf(1) 8l Kansas City Southn. 8 K'mann Dept Strs(1) Kayser (J) & Co (1). Ceith-Alb-Or pf (7). Kelsey-Hayes Wh Kelvinator Corp.... Kennecott Copper(1) 27 Kinney (G R) Co... 2 Kresge Dept Stores. 1508 Kresge (SS) (1.60). 11 Kreuger & Toll 1.61). 365 Kroger Grocerv (1) Lehigh Val Lehman Co Lehn & Fink (3). Libbey Owens Glass. Ligg & Mvers B (15) Link Belt (1.60) Loew's, Inc (t4) . Loft Inc A Loose-Wiles (13) Loose-Wiles 1st (7). 508 Lorillard (P) (1.20) 31 Louisiana Oil o 1 Lou Gas&El A (1%) 1 ulsville & Nash(4) 2 McKeesport T P (4). 24 McKesson & Robbins 10 McLellan Stores. ... 2 Mack Trucks (1). Macy (RH)& Co(n3). M 1 Sugar. 5 Manhat v gtd (1) ManhatElev mod gtd Marine Midld (1.20). 4 Marmon Motor Car., Marshall Field (3%) Mathieson Alkilf (2) May Dept Strs (2%) Maytag Co. ... Maytag Co pf (3). Melville Shoe (2). Miam! Copper. Midland Steel (3)... Minneap Fioney R(3) MStP &S S Marle.. Mo Kan & Texa A Mo Kan & Tex pf (7) & Missour! Pacific..... Missour! Pac pf (5) Montgomery Ward. . Mother Lode. . Motor Wheel (50 Muilins Mfg. . Mullins Mfg pf. Murray Corp. 1514 Nash Motors (2). 314 Nat Acme Co. . 1% Nat Bella Hess. 9 Nat Bella Hess pf 37% Nat Biscuit (2.80). 3l Nat Cash Reg A 1% 0% Nat Dary (2.60). 1 Nat Dept Stores. .. ®% Nat Dept Strs 1st pf. 18 Nat Dist I'rod (2) 130 Nat Lead pf A (7) 13% Nat Pwr & Lt (1). Nat Steel (2) t Surety (2). v Copper (80¢) N Y Central (4). N Y Chicags & St N Y Chi & StL pf.. N Y Investors...... NY N H & Hart (4).. H&HDpt (1), randa Mines (2)., Norf & Westn (112). North Am Aviation. Nor Amer(b10%stk) North Am Ed pf (6). Northern Pacific 3).. 672 Ohlo 01 1 Oliver 4 Oliv 1% Omn 201 Otis El 244).. 201s Owens 111 Glass (2). 24 Pacific Gas & Bl (2). 100% Pacific Tel&Teleg(7) Packard Motor (40¢) Par-Pub (b10% stk) Pathe Exchange » Patino Mines Pecerless Mot Penick & Fi Penney (J Cy (2.40). road (2).. Peoples GasiChi) (8) I'ere Marquette pf. .. I'et Corp of Am (1) Pheips Dodge Co. ... Phila Co 6% pf (3).. Philn&teading C & I Uhtitp Morris&Co(1) 1s-Jones pf (1) s Petroleum. . um., .. « Pillsbury Flour (2) Port Ric Am Tob(A). Prairie Oil & Gas. ... ‘rairie Pipe Lin roct & Gamb ¢2.40 'ro & Refiners...... 1 & Refiners pf. . blie Sve NJ(3.40). Public Sve NJ of (6) NJpt(7) 1 Corp (3) *ure U1l Baler P a3 ERar e anRBP 3 vavmne § @dio Corp. Radio Corp pf A 3%4. Radio Corppf (B). Hadio-Keith-Orph A 25 Raybestos Man(1.60) 3 Reading Rwy (4) 7 Real Silk Hostery 1 Remington-Kand..., 11 Rem-Rand 1st pf (1) 2 Reo Motor Car(40¢). 15 Republie Steel, 55 Republic Steel pf... 4 Reynclds Tob A (3). 50 : Iteynolds Tob B (3). 17 Hio Grande Oll. .. 1 Rossia Ins of Amer 6 Royal Dutchof NY.. 13 3K Safeway Stores (b). 1 75 Safeway Strspf (6). 408 85 Safeway Strspf (7). 208 854 9% StJoseph Lead (1).. 1 1l% (Continued on a 14) STAR, WASHINGTON, D. C. | | | | “approach in size thi SATURDAY. DEC EMBER 5. 1931. STOCKS GOMIGHER AT SHORT SESSION Active Issues Gain as Mar-| ket Displays Show of Strength. BY GEORGE T. HUGHES. Spectal Dispatch to The Sta NEW YORK, December 5.—Recover- ing from its t over the German sit- | uation, today's week end stock market | staged a substantal rally. The assur- | ances given by the German Fascist| leader as to commercial debts had their | effect, not only in the bond market, but | in the share list as well, and the result | was a welcome show of strength | How much of the improvement was due to short covering ot be saidd but one thing vas evident—there was no pressing liquidation. For the moment at least the market was bare of large | offerings nge was down 50 | points at the opening, but recovered a | part fo the loss later. Bank stocks, which had gone off Friday with Ger- man bonds, were moderately higher, and that helped the stock market also. | Active Issues Recover. All the active issues in which opera- tions for the decline had been carried on in recent weeks were 1 to 2 points higher. Auburn Auto up over 5 points, reflecting the s technical | position in that stock. zation of less than ¢ a short accour ong with a capitali- | 0,000 shares and that believed to | floating supply. Another stock that gave signs of an oversold condition was American Tele- phone & Telegraph. In this case the floating supply is, of course, adequate for any normal borrowing demand, but pessimism on the outlook has been over- done. The stock for some time has been supported around 125 and it was 3 to 4 points above that level today. United States Steel, Allied Chemical and | American Can rallied moderately. Of the three, American Can met the larger offerings on the advance The rails gave a much better account of themselves and that was regarded as a highly favorable omen. Chesa- peake & Ohio and Atchison were especially prominent. The lower-priced | railroad ‘issues lagged, with a new low | for Erie common The Street was looking forward to | President Hoover's message to Congress for constructive suggestions. It was par- ticularly interested in the possibility of | organizing something similar to the War Finance Corporation. Probably because | there was no_exact information as to what would be done along this line, | shorts were all the more willing to take | in their contracts over the week end. | Steel Trade News. | News from the steel trade was mildly optimistic. Youngstown reported that | production in certain lines would be increased next week to the highest level | in three months. There were also indi- | cations of a hardening of the price | structure. Electric Auto Lite declared | the regular quarterly dividend of $1 on its common stock, coincident with | the announcement that 300 workers had been added to its Toledo plant this | week. Tarkets at a Glance NEW YORK, December b (#).—/ Stocks strong; rails and utilities rsll)4‘ Bonds irreguiar; rails and foreigns im- | prove. Curb irregular; utilitles firm. | Foreign exchanges easy; Canadian dol- | lar at new 1931 low. Cotton steady; | trade buying. Sugar steady: Cuban support. Coffee higher European | buying. | PARIS BOURSE PRICES. PARIS, December 5 () —Three per cent rentes, 82 francs 60 centimes. Five er cent loan, 100 francs 30 centimes. xchange on London, 84 francs 87%% centimes. The dollar was quoted at 25 francs 523 centimes. CLEARING HOUSE FIGURES. | Washington Clearing House figures for today: $4,139, 1 | SILVER QUOTATIONS. NEW YORK, December 5 (#).—Bar silver quiet and steady and 4 higher at 29 cents. | e = | U. S. TREASURY BALANCE. | The United States Treasury balance announced today as of close of business December 3 was $132,214,431.31. Customs | receipts for the month to date were | $3,193,302.04. Total ordinary expendi- | tures were $11,760,728.44. | NEW YORK BANK STOCKS | Asked. | 3804 | 311, 4815 2314 Chatham’ Phoenix 35.. Trust Companies. 82Y% 33% 18'a | | 60%4 _Trade Reports at a Glance. By the Assoctated Press. NEW YORK, December 5—Tabloid review of wholesale and retail business conditions and the state of crops as reported to Bradstreet’s this week from the following centers, on the basis of comparisons with condi- tlons in the same areas in the corresponding week last year: ‘Wholesale £ and ob trade. . Fair Quiet Fair Quiet Quiet, Fair Quiet, Quiet Fair Quiet Quist Quiet, Quiet, Quiet, Fair Indianapolis Louisville Milwaukee Pittsburgh Des Moines . Duluth i Kansas City . Minneapolis Omaha St. Louis .. St. Paul Baltimore . sales active, buy prices low Christmas savings funds help trade. Indianapolis—Christmas buying tive, although below normal Louisville—Wholesale jewelry and holiday trade better, but lower than 1930; Christmas savings checks Milwaukee—Milwaukee day helps retailers; colder weather stimulates many lines Pittsburgh seasonally active, Des Moines—Higner wheat prices helping trade; ployment up slightly. Duluth—Buying cautlous; manufacturing, lumber and coal slow. Kansas City—Christmas activity building slow, Minneapolis—Cool weather helping retail trade, but clothing shows no improvement: coal trade up. Omaha- grocery trade fairly steady. St. Louls—Wholesale coal trade better; lead and zinc slightly up; re- tailing in gencral improved. St. Paul—Furniture fairly active parel somewhat increased. Baltimore—Pre-holiday qulet tn | a. high percentage of so-called | and other fiduciary institutions were al- off sharply during 1931, | been required to carry them at their actual market' quotations. | J Retail trade. Comment. Chicago—Holiday sales increased, toys leading. Cleveland—Steel remains at 35 per cent; domestic coal better; food Detroit—Chevrolet to exhibit new models; Ford soon to begin output; Colder weather alding coal trade; no relief in unemployment; STOCK AND BOND By the Asso SATURDA STOCKS. 50 Industrials. Today. .. 719 Previous da: Week ago. . Month ago. Year ago Three years ago. Five years ago... High, 18 Low, 1931, High, 1930 Low, 1930. . High, 1929 Low, 192! Industrials. . 69.8 69.8 Today Previous day. Week ago. . Month ago Year ago Two years ago... Three years ago. High, 1931. s Low, 1931.. High, 1930. Low, 1930.. (Copyright, 1931, Standard Statistics Co.) LEGAL BOND REQUIREMENTS MAY SOON BE LIBERALIZED 'Bill Is Considered for York Legislature Regulations on Debentures. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, December 5—Within a few weeks the superintendent of banks in fhose States that impose certain re- strictions on the investments of savings institutions and trustees will be com- pelled to reach a decision regarding the status in 1832 of securities that technically will then be no longer legal, owing to failure to cover their interest requirements by specific margins. The situation today parallels that in 1921 when the depression cut deeply into the revenues of the railroads a\ndl legal bonds theoretically passed off the legal | list. At that time full appreciation of | conditi was taken by the banking authorities, who made "the necessary concessiohs under which savings banks lowed to carry such bonds in their port- | folios and “at cost” rather than “at| market.” New Law May Be Passed. Conferences now being held between banking interests and representatives | of the New York State Legislature and | the New York State banking depart- ment are expected to result in the filing of a bill at Albany early in January which will temper"the terms of the savings bank law and greatly ease the position of the savings banks during the present crisis. It has never been reasonable to anticipate that the super- intendents of banks in this or in other | States would exercise their authority | and compel institutions to sell securi- | ties that had not fully realized legal | requirements, when the bond market | was in & demoralized condition and the | pressure of a few offerings on it re-| sulted day after day in wide open breaks in junior mortgage issues. | There i no equivalent during this| century for the collapse in second-grade railroad bonds that has taken place in | the past three months. In the last| 19 market sessions this group of bonds | has declined into a price area where, they have sold between 20 cents and 40 | cents on the dollar. Most of these bonds originally came out well above | 90; some above 100. Until 1831 they | have all fulfilled the legal requirement | that they show earnings in each year | for at least five or six fiscal years, amounting to one and one-half times | their fixed charges. They were quali- | fied as to legality by having paid cash | dividends on_ their stocks, also for five | or six fiscal years, equivalerit to at least one-fourth of fixed charges. It has been propesed that the regula- tion, as to the term during which in- terest charges must have been earned, | be increased from five years to eight vears, and the entire périod under sur- vey be 10 years instead of ‘six years. This would give some of the roads more latitude and permit them to qualify, even though their earnings have fallen Rating Change Suggested. A more liberal attitude on the part | of State superintendents of banks and | of National bank and Federal Reserve | bank examiners is likewise believed to | be under consideration in behalf of commercial banks. Under the present rulings generally adopted there are cer- tain classes of securities that realize a rating high enough 80 they may be arrjed in the portfolios of banks “at o in spite of the fact that they have dipped down well below so-called book values. ,Other securities of lower ratings have had to be depreciated by specified percentages. In cases of de- faulted bonds, banks holding them have | Since these rulings were put into | effect about three months ago the bond market has steadily declined. Condi- tlons have become such within the past wo weeks that it has become impossible to sell any considerable amount of | efther high-grade or inferlor types of | bonds. - | Under the circumstances, there has ecn a growing disposition on the part of bank examiners to take a more Manufacturing and industry. Quiet Quiet Slow Fair Quiet Fair Quiet Quiet Quiet Quiet Quiet Quiet Quiet Quiet Quiet Collections. Fair Slow Fair Slow Slow Slow Slow Slow Slow Slow Slow Slow Slow Slow Slow Fair Quiet Quiet Fair Quiet Fair Quiet Fair Fair Quiet Fair Quiet Fair Fair Fair helps retailers; building fairly ac- help buying bullding slow; em- below normal; zinc sales increase; ; demand for holiday lines and ap- industry, but retailers doing better. , DECEMBER 5. | uation more from a practical and com- | mon sense point of view than from one | side the current items are cash, mc- | FINANCIAL ** A—13 FEWER BUSINESS - FAILURES NOTED {November Insolvencies Are Less Than Those of Last Year. AVERAGES ciated Press. 20 20 Rails. Utilities. 39.0 113.1 37.0 109.7 36.7 109.9 48.7 1246 98.9 164.9 130.9 189.1 103.7 104.3 106.2 203.9 36.7 1015 1416 281.3 | 86.1 | 1678 3 Special Dispatch to The Star. 1 7 | NEW YORK, December 5 Insol- | vencles in the United States in No- | vember numbered 2.195 against 2,362 20 |in October and 2,031 in November of Utilities. . | |last_year, according to the records of 216 2 | [R. G. Dun & Co. These figures cover | only business defaults and do not in- | clude individual bankruptcies or the | suspensions of banks. There was a | decrease last month from October of | 167, & decline of 7.1 per cent, and an | Increase of 164 over November of last | year, or 8.1 per cent. A year ago, when | conditions in November were somewhat | strained, the decrease in that month | from October was only 93, or 4.4 per 168’8 iy | cent, while the increase over Novem- e . | ber of the preceding year was 235, or i | 13.1 per cent. By both comparisons | the November insolvency record for this year makes a slightly better showing. Liabilities last month were also bet- ter than for the preceding month. The amount involved was $60,659,612. This total compares with $70,660,436 in Oc- tober, an unusually heavy sum, exceed- ing the total reported for each month in 1931 since January. In November of last year $55260,730 were involved in the business defaults then. These comparisons clearly indicate that the disturbance which occasioned the un- usually heavy record in October has been largely eliminated. Insolvencies this year exceed those of any preceding year. For the 11 months of 1931 the number was 25,527 with liabilitles of $663,096,052, not in- cluding banks. For the same period of last year there were 23,830 similar de- faults for $584,600,481. From June to S:Dlel;nber, inclusive, this year some cession occurred in these figures, but the October return again gmmt a rather unfavorable showing. 1In 1930 business failures involved heavier t normal, with no relativity between | than for any previous reccrdaug‘ rtnmclhaal: prices and values, and to permit the |time. This year there will be a fur- status quo to prevail where there is a | ther increase. sound position with respect to a m jority of the investments in the bank's portfolio and in its commercial loans. “Freeze In” Period. This means, of course, that there will be a period of “freeze in” until a return to normal conditions. The important fact is that those who have authority are now dealing with the sit- Introduction in New to Relax Present liberal attitude toward bank portfolios, realizing that insistence on the sale of certain bonds would only lead to increased demoralization and further banking troubles. The disposition now is to regard market conditions as ab- 99.96 PER CENT HELIUM PRODUCED IN TEXAS By the Associated Press. Manufacture of several hundred C feet of helium that was 99.96 percéflt fd“l: B;Qnounied by the Bureau of es. The work was perform A"A'?:l!l"o' Tex., plant. i ca ough the production of helium of this unusual purity is still in the ex- perimental state, it was said the amount in question was obtained at the rate of 50,000 cubic feet per day and that it a;srl’slt be safe m‘ 5!“19 that the method some promise of com: i - bears & mercial appli Previous to the operation at Amarillo the average purity cf helium obtained by the Army and Navy did not exceed 96 per cent. However, the helium pro- duced during 21, years' operation of BY GEORGE T. HUGHES. the plant has averaged better than 97.8 per cent and at no time flurlng the el It is now time to expand the imag- inary balance sheet " & basiiie gresent fiscal year has it dropped below these studies and to separate assets and liabilities into the two classes most used in analyses, namely, fixed and current. Here, then, is the suppositious set-up: ASSETS. “in’" i that may be correct from a statutory standpoint but ou$ of whose rigid ad- herence there womld undoubtedly de- velop serious baniig difficulties. (Copyetent, 1831.) Financial Statements aAger cent. an indication of what this puri means to the Navy's dirigible Akl’%n‘ tl{ is pointed out that an increase in purity of helilum of as much as 1 per cent ‘mcreases the useful lift of the ship by |about two tons. Therefore the fact | that the Amarillo plant produces helium of a 2 per cent higher purity than was formerly obtained has given the Akron 200.900 | an increased lifting power of about four :000,000 | LO0S: In like manner, an increase in b 7 0 purity to 99.96 per cent would also give almost the ultimate lifting capacity. LIABILITIES, i ¥ § - Tire Sales in Italy. By the Associated Press. Trade dispatches from Milan, Italy, state virtually the only progress being made by American automobile tires in the Italian field is by those in a posi- tion to compete on a price basis. Property ... Investment! panies . Good will Cash . < Accounts recelvable Marketable securitiel Inventories ........ 15.000,000 7,000,000 A © 9000000 (less reserve) 10, Siees et Capital stock . Funded debt .. Reserve for contingencies Notes payable ... : Accounts payable Reserve for taxes . Surplus Now what is known as the financial position of & corporation as set fcith in | The higher priced American lines, Its balance sheet is the relation between | '683rdless of acknowledged quality su- the current assets and the current lia- | PEHIOTItY, are not being taken by the bilities, the amount by ~hich the for- | Public 85 much as are the tires offered mer exceeds the latter being knowns as | 208 Price parity with domestic makes. the working capital. Curren: assets are Office Space those which be i1, " oF which can be turhed thte: ek R0 Saul Building 925 15th St. N.W. regular course of business, and current One Large Room at $52.50 per mo. liabilities are those which must be met | within a relatively short period. | Suite of 4 Rooms at $92.50 per mo. In the above statement on the asset counts receivable, marketable securities and inventories, the total of which is $48,000,000. On the other side, the cur- rent liabilitles include notes payable, accounts payabla and reserve for taxes, or n tlolllmDL ?la.gon,ooo, and working capital, which is the difference by the two, is $30,000,000. s This is a reasonably good showing. Many corporations are stronger and many are weaker. In any event, it is this ratio wnich the analyst interested in the corporation's securities looks to when he first examines a financial | statement. | All outside rooms. assuring abundance of light and air. Excellent service. the eart of the Anancial distrier™ 1 B. F. SAUL CO. National 2100 925 15th St. N.W. (Copyright, 1931.) — e Money to Loan | g}:ngxm.E%?fsll(‘ Secured by first deed of trust on real estate. 14th and G Streets Prevailing interest and commissio; Banking in All of Its Phases oseph I. SINCE 1899 MONEY TO LOAN At 514% and 6% Interest Before Placing or Renewing Your 1st and 2d Trust Consult WELCH Realtor Loan Specialist 15th and N. Y. Ave. N.W. (National Savings & Trust Co! Blds.) National 1346 First Mortgage Loans Lowest Rates of Interest and Commission Thomas J. Fisher & Company, Inc. MORTGAGES — SAFETY AND STABILITY When you invest in our 6% FIRST MORTGAGES you have these two assurances—that the investment is a safe one, with your money secured by conserva- tively appraised improved Wash- ington real estate and the interest Over'a Third of a remains stable throughout the term of the mortgage. Century Without a Loss A May be purchased in amounts from $250 up. B. F. SAULE CO. National 2100 925 15th St. NW. THERE IS NO SUBSTITUTE FOR SAFETY