Evening Star Newspaper, January 4, 1932, Page 13

FIN CURB ISSUES DROP IN SMALL MARKET Leading Stocks Off Fraction- ally—Motor Shares Un- der Pressure, BY JOHN A. CRONE. Bpecial Dispatch to The Btar. NEW YORK, January 4.—Resuming the trend that marked the close of the first session of the year, the Curb Ex- change opened lower today and con- tinued to drift towards lower levels, but trading slackened as prices declined. Electric Bond & Share opened un- ehanged but at midday showed a net ! Joss of 3. Cities Service was off 4 at this time after opening with a frac- | tional decline. Standard Oil of Indiana | ylelded % to the 14 level after initially | pearing unchanged wSouLh Penn Oil proved one of the weakest spots in the Standard Oil di- vision, as it opened down 2 points at 10. Standard Oil of Ohio at 26! showed a drop of 1!; points. Frac- tional losses were registered during this od by Standard Oil of Kentucky, ternational Petroleum and Imperial Oll of Canada. In the miscellaneous oll group, Gulf Oil was unchanged but inactive. Pressure was resumed against the motor shares. Ford Motor of Canada A was the first to decline. It soon was followed by Cord Corporation, but Ford Motor, Ltd., at this stage showed stubborn resistance Curb stocks were lower at the open- ‘American Natural Gas common stock was suspended from trading on the Curb Exthange until further notice. The company, like its parent and affiliates, is under the process of re- organisation, Its closing sale Saturday was at 3-16, up 's for the day. It bhad & 1931 range from 575 to 1-16. Near the end of 1930 the stock sold sbove eferred shares suf- ‘820 & ghare 1 g‘nd-Wul!m and P: Public utility fered from some eific Coast liquidation in the forenoon, which accounted for the decline of 434 in Arkansas Power & Light preferred and losses of a point each in Electric Bond & Share $5 and $6 preferred and United Gas preferred. Pittsburgh & Lake Erie Railway saged a rally of 2': points, thereby attracting attention to the limited rail liat on the curb. Chicago, Burlington & Quincy was inactive, though its earn- ings for the 11 months ended Novem- ber 30 showed a net of $7.56 a share against $11.72 a share in the same 1930 riod. D.Ele(‘uic Bond & Bhare started off on & 1,400-share trade at 10%, unchanged, but Jater eased narrowly. American Gas & Electric, Central Public Service A and United Light & Power A were all lower. In the ofls, Cities Bervice was off 8 small amount at 5%. Standard Ol of Indiana was unchanged at 14%, but Standard Oil of Kentucky at 1313 and Standard Oil of Ohio at 26} were both lower, the latter by nearly 3 points. Industrials were steadier. Aluminum Co. of America at 50’ and Great At- lantic & Pacific Tea at 142 were un- changed. American Cyanimid B was off narrowly. Trading corporation equi- ties had a heavy tone. Goldman Sachs opened on a 1,600-share deal at 3, a(!J fractionally, end United Founders was off slightly at 15%. Mine shares were lower, with United Verde and Roan An- telope both declining. The motor shares were steady, in spite of weakness in the same group on the big board. Cord had a amall decline, but Durant and Ford, Ltd, were both firm. Aviation shares were little changed. In the gas company issues Appalachian was lower, but United Gas had a small advance. FOREIGN EXCHANGE. furpighed by W. B. Hibbs & Co.) e Nominal gold Selling checks 1u ANCIAL D. C., MONDAY, JANUARY 4, 1932. NEW YORK CURB EXCHANGE Received by Private Wire Direct to The Star Office. in 100-share lots except those des Stock and Sales— Dividend Rate, Add 00. Open. High. 2 8w ¥ All Am Gen Corp. Allled Mills Inc. . Aluminum Co of Am 13508 AluCoof Ampt (6). 3 Am City PEL (A) 83 5 Am Cit PAL B b10% . Am Com P A (b10%) Am Com Pr B(b10%) Am Corpn (£30¢c) Am Gas & Eleo (11). Am Invest Ine (B).. Am Laundry Mch(2) Am Lt & Trac (234). Am St Pu Sv (a1.60). Am Buperpower Arkansas Nat Gas. Arkans Nat Gas A. Ark P &L nf (). Arcturus Rad Tube, As50G&EL (A) b5 %.. AssoG & Elct (8)... Asso Tel Ut (b8%) Atlas Plywood. 109' Auto V Macv prpt2 Bliss Co(EW) (b8 %) 1 Blue Ridge Corp. ... % Blue Ridge cv pf(ad) Borne-Scrymser.... Brasil Trac Lt&P(1) Brill Corp B, .. BritATcou B 1.13 3-5 Brit Celanese ret Bunker Hill & Sull.. Cable & Wire B rcts Canadian Marconi. Carnation Co (j1%). Cent Pub Sve A b5 %. Central States Elec. . Chi B&Q R R (10)... Cities Service (g30c) Citles Serv pf (6)... Claude Neon Lits Inc. Club Aluminum Uten Col Oll& Gas vte. Columbia Ple vte Commwith Edison Cmwlth & Sou war, . Consol Alreraft. . Consol Auto Merch Consol Copper., . Con Gas Balto (3.60) Consol Gas Utility A Consol Retail Stores Contl G&E pr pf (7). Covper Range Cord Corp. Corroon&Rey pf(A). Creole Petroleum. .. Crown Cent Petrol. . Crown Cork Intl (A) Curtiss Wright war. Dayton Alr & Eng Deere & Co. Driver Harris new.. Duke Pow (5) Duquesne Ga. Durant Motor: Duval Tex Sul wi.. East Uti] Assoe (2). East Util Inv A. . Eisler Electric. Eles Bond&Sh (b6 % Elec B & Shcupf5.. Elec B& Shpt (6)... Elec Pow Assoc A (1) El Shareholdg (b6 %) Elec Sharhldg pf (a6) Emp G & F cu pf(1). Emp G & F cu pf(8). Employ Reinsu 11.80 Eureka Pipe L (4).. Europ Elec deb rt. Europ E Ltd A (60¢) Fajardo Sugar. ederated Capiti Ford Motor, Can., A. Ford Motor, Can., B. Ford Mot Ltd 36 3-50 Gen Aviation.. GenE Ltd rcs 86 3-5¢ Gen Empire (1) Gen Theat Eq cv p! Glen Alden Coal (4). Globe Underwrit 40c. Gold Seal Elec new.. Goldman Sacha. ... Goth Knitback Mch. Gt A&P Tea nv(16%) Gt At&Pac Tea p{(7) Gult Ofl of Penna. .. e 8665 apest. pe e erown (nom.) 11.22¢ . 268¢ 268c > 18.65¢ . 268¢ 18.95¢ MESTIC BONDS, i High.' Low. % = 4 X i los i Bitiatas Segg, e paEns S S sTRasaR SISTT = Uu! FISRES Hazeltine Corp (1).4 Hecla Mining (40¢) .. Hollinger Gold 170c. Horn & Hard (2%).. Hudson Bay M & S. Humble Ol (12%).. Hydro El Securities. Imp Of1 of Can (50¢) Insurance Security. . Intercontinent Pet n Int Hydro cv pf 3%. Int Petroleum (1). .. Int Superpwr(11.10) . Internatl Utility (A) Int Utilities B, In'state Equity S Italian Superpow A., Knott Corporation. Lackawanna Bec (4) ~Prev. 1931.— High. Low. L % 25 5% 107% 83 2 % ignated by letter “s.” st Divi 8y Long Is 5 17% 4 Mo-Kan 8% 21 184 % 9% 1% 58 61 Nat Foo Nat Fue 1% 5 N Y Tel Niag- Niag-Hu Noma E North Ei Okla Ga PacG & Pac Tin Pandem Pennroa Peppere Phoenix Prod Roy Prudent. Reynold Rossia 1 alt Cre Selecred Slet Ind Singer N Swift & Taggart Tung So Un Shoe U S Elec U S Foil W USé&In U 8 Inte; Walker, Watson % Wenden 124 & 44 5 % Com Edi 1% Pub Sve Dividend rates in nual payment. °Ex d & Payable in cash or dividend, _{ plus toc] »i stock. RIS 3% in ok APl 104 Ik 4 244 4% Land Co of Florl Lone Star Gas n Louisiana Lan & Ex. Mangel Stores pf. .. Mass Ut cv pf (2%).1008 Mavis Bottling (A).. Mid Weat Ut (b8%). Mohawk Hud 1s Nat Aviation. ., Nat Bd & S Corp (1). Nat Investors Nat Pow & Lt pt (6).500; Nat Pub Sv A (1.60) Nat Screen Sv (2)... Nat 8h T Sec A t60e. New Eng Pow pf (6). Newmont Mining. ... New Process (70c).. NY&Hondur Ros( N Y Steam Cp (2.60). Niag-Hud Pow B w.. Niag Share(Md) 20e. Nipissing. Nitrate Corp Chile Ohio Copper Parker Rust Penn Mex Fuel 113 . Phila Co new(11.40). Philip Morris [ne. .. Pierce Governor Pilot Rad Tube A. Pion G M Ltd (12¢).. Pitney Bowes (b4 %) Pitts'& L B (110). .. Pittsbgh Plate G (2) Pub Ut H Cp cum pf. Pub Utl] Hold xw... R'way & Lt Sec (13).1008 4 Reiter-Foster. 3 Reliance Int A. Reliance Manag Roan Antelope Min.., St Anthony Gold. Regis Paper Sec Allied Corp (1 Sl Ind al ctfs(5%). South Penn Oil (1).. Sou Cal Ed pf C(1%) South Col Pwr A(2). Sau Pipe Line Stand Ofl of Ind( Stand Of] of Ky 1. Stand Oil Ohio (234) 6008 Stutz Motor Car..... 4 Tob Prod of Del wi.. Iriplex Safety Glass Tri-Cont Corp war... Tri-Utilities Tubize Chal . Tung Sol Lamp(1).. Un Gas of Canada (1) Unit Car Fast (40c). Unit Corp war : Unit Founders. Unit Gas Corp Unit Gas Corp war. Unit Gas pf (7). Unit Lt & Pw A Unit L & Pwr pt(8). U S Dairy (A) (6) Unit Verde Exten (1) Univ Ins (1%) Utll Po & Lt (b10%) Util Pwr & Lt pf(7). 4+ Utll & Ind . Utility & Ind pf(1%) Van Camp PKg. . Van Camp Pkg pt... Vick Financial (30¢) Welch Gr Juice (12). 50 Woolwth Ltd 17 4-bc in stocl us 8% in stock. Sales— d 00. Open. High. IR 16 su cupfB(6).. 25; 85 tock and idend Rate. Ade 4 H Pipe 6 d Prod B. 1 Gas (1). PL(6%). 1d Pow A w., B Tec (40€). ... uropean Oil. s & El pf (7) Elstpf1%. Cop spec (2) oil. ¢ d Corp (40¢) 1 Mfg (4).. Secur Corp. alty (b10%). 10 jal Invest... & 4 s Invest. ... ntl (10c) . ek Prod industries 5 14 prior(s%).. 2 ifg (). . 1 0 Co (2) Corp. B 1L pt (3) Mach(t3%). Pow ww. (B) (500) tl Secur. r Sec 1st pf.. H (250)..... J W) Co... " 36, o 8 k) 36‘44! Coppe | 8% | 1 4 RIGHTS—EXPIRE son.... 8 1% 1u 14 NII.Feb 1 1 2% 24 24 | dollars based on last quarterly of semi-an- ividend. 1Partly extra. IPlus 4% in stoek. stock. b Payable in stocl e Adjustment | stock. & Plus 6% in stock. hPlus 1% in | X. kPlus 10% in stock. m Plus 3% in D Pald lsst year—no regular rate. 8l Everybody’s Business Down Trend Starting New Yot Munl, Caused. by Failure of Two Banks. Credit- Corporation Slow. PRTSTPIO ST, 0% 2 | Special Dispatch to The Star. BY DR. MAX WINKLER. | { NEW YORK, January 4—The first | trading day of the new year opened { under rather unfavorable auspices. The closing of two banking institutions with | ageregate deposits of about $50,000,000 was probably the main cause for the downward trend on Saturday. The de- cline was helped materially by the an- nounced receivership of Americ | Commonwealth, a $200,000,000 ut * | holding company, headed by Frank T. Niag_Falls Pow 65 /60 No Ohio P&L 6%s '81 Nor tat Pow 4135 '61 Ohio¥ Edison 4 Southern N G 6s 1 Southw G&E 5 3 Goutn LA S Stand GAE s Del 65 ‘44 3 Wiscon P&L 55 F '58 FOREIGN 83t BONDS. B _Without warrants. E'flu tasued.” , | to know the rea | Hulswit of Grand Rapids, Mich. | 1t would be very helpful if a state- ment could be issued by competent authorities, which would once and for all clean up the many peculiar notions entertained by the bulk of the Ameri-| can public in regard to the status of | the National Credit Corporation. L There is no doubt that depositors in the City Bank and Trust C8. of Hart- { ford, Conn., which closed its doors or Saturday, or in the People’s State Bank of Charleston, S. C., which was so forced to shut down together with 44 branches in 41 towns, would like ns why the corpora- tion does not funct What has be- come of the promises and the man reassuring statements made at the time the organization was launched? Swing of Pendulum. It was not so very long ago when economists of the new school scoffed at those who hesitated to purchase com- mon shares, which sold for more than 10 times reported earnings. Such conception was regarded as too ortho- dox and as distinctly backward At the present time, the pendulum has swung too far in the other direc- tion. [Even sound financial institutions are quoted in the market at prices equal to or appreciably below 10 times showd profits. A notable instance is the stock of the Chemical Bank and Trust Co. of New York. Earnings for 1931 are estimated at S2.44 a share, an increase of well over 8 per cent, compared with the previous year's showing. The decline in General Motors to a new low level was attributed in Wall Street circles to belated liquidation, rather than fear over unfavorable ac- tion at the forthcoming dividend meet- "“f several weeks hence t is, of course, possible that the set- back may have n helped by the y | crude rubber. o constant gain by British automobile manufacturers in markets formerly | monopolized by America. It is obvious that, as time goes on, countries with | depreciated currencies will be obliged to trade together rather than with the few remaining countries whose ex- changes are either at or above gold parity. Relief must, however, not be expected from abandonment of the gold standard, | but rather from an effort to help thos | countries which are off the gold star | ard to return to it. Prediction of Gains, A gain of 50 per cent in sales of the Seiberling Rubber Co. is predicted for 1832 by F. A. Seiberling, president. This should mean approximately $12,000,000 as compared with only about $8,000,000 for the past year. Mr. Seiberling also asserted his belief in the rubber industry being in the van Wwhen the business revival comes. The future of price movements, he continues, will depend upon what steps the English or the Dutch, or both, may take in re- gard to curtailment of production of A restriction of output should send the market upward and bring a beneficial increase in tire prices. Deflation has not been completed, in the opinion of Albert H. Morill, presi- dent of the Kroger Grocery and Baking Co. It 15, however, not unlikely, he con- tinues, that business might possibly stage a partial recovery without com- plete deflation. He feels that confidence n some lines is returning, or least lack of confidence is decreasing. This, Mr. Morill holds, is particularly true of nancial conditions in the Middle West. | made by the National City Bank in its | PLEA FOR GOLD BASE ADVANCED BY BANK National City Sees Chaos in Gen-! eral Abandonment of Yellow Metal Standard. By the Associated Press. NEW YORK, January 4.—A plea for | maintenance of the gold standard is | monthly review. “If all countries should gold standard and use paper currencies | leave the | ! LIVE STOCK PRICES IN FIRMER TREND Pick-up in Eastern Shipping Demand Has Improved Market. BY FRANK I. WELLER, Associated Press Farm Editor. The cattle market has experienced a healthy underfone in anticipation of a broader outlet for beef after the holidays. In the last few days Eastern shipping demand has picked up and there has been a good clearance of most grades and types. At Chicago Eastern shippers absorbed the lower grades at firm prices and local killers showed more interest in the trade. Although there were many sacrifice sales to free the coolers of old stock, fresh meat sold 50 cents to a dollar above the low time last week and the lower grades turned at $2 and higher in spots. Steer Prices, was 50 cents to $1.50 higher at Chicago, veal $1 to $2 higher, calf meat 50 cents higher and lamb and mutton steady. There was little constructive news in the lamb market. Despite that demand was improved, supplies remained liberal. Receipts at the twelve markets for the first four days of the 275 compared with 185,300 for the first four days of the previous week. run was duplicated in hog re- which for the twelve markets 700, compared with 365.700 a k and in cattle receipts, which were 114,600 for the first four days, compared .with 65,880 for the same period a week ago. Hog prices continued their downward trend and in most instances sold on a 5-cent lower basis than last .Tuesday at Chicago. There light-weights were in the best demand and readily ab- sorbed. Marketings of live stock were about normal the first half of the week and showed sharp increases in all depart- ments over the curtailed Christmas week movement. The tendency on most classes and grades during the first two days of the week was to lower price levels. On Tuesday's market at Chicago light hogs sold around to 10 cents lower and heavy butchers fully 10 to 15 cents be- low the close of last week. Tuesday’s Chicago top was $4.55, with the bulk Steer meat | of good and choice, 170 to 210 pounds, selling from $4. to $4.50. Butchers averaging from 230 to 290 pounds sold on a weak closing market that day, largely from $4 to $4.25 and packing sows mostly from $3.50 to $3.65. Demand Is Uncertain. The cattle market has been uneven. Demand the first two days of the week was strongest for desirable yearlings and light stebrs, which, with most she stock, sold largely around steady levels with last week's closing. Heavy steers and many medium weights took 25-cent declines in Chicago trading. The ex- treme top on thaimarket was $11, paid for light steers. A sprinkling of choice steers and yearlings of all Tepresenta- tive weights sold from $10 to $10.75, but cattle of choice grade were scarce and the bulk of slaughter steers sold from $5 to $8.50. The lamb market at Chicago closed Tuesday on a weak to 25-cent lower basis than late last week. Choice fat lambs are selling at Chicago around $6.25, the bulk of the better grades from $5.50 to $6, and throwout natives from $4 to $4.50. Baltimore Markets ispatch to The Star. IORE, Md., January 4—White 100 pounds, 85a90; sweet bushel, 50a90; yams, barrel, beans, bushel, 2.50a2.75; 100, 2.00a3.00; Brussels sprouts, per 10 2.00a3.00; Brussels sprouts, per quart, 10al5; cabbage, bushel, 75a1.00. carrots, crate, 3.00a4.25; caulifiower, crate, 2.10a2.25; celery, crate, 1.50a3.00; cucumbers, hamper, 5.00; lettuce, crate, 3.50a5.00; onions, per 100 pounds, 2.70a4.80; peppers, erate, 1.50a3.00; spinach, bushel, 50a65; squash, bushel, 50; tomatoes, crate, hamper, 20a . grapefruit, Bpecial BAL potatoes, potatoes, 1.00a1.25 beets. per nips, 50a1.00 Dairy Market, Chickens—Young, 18a22 horns, old hens, . 1d, roosters, 10a12; ducks, 12a23 guinca fowls, pair, 2585 0a30 Receipts, 792 cases; current ; hennery white, 27a32. Butte and fancy creame 28a32; ladles, 20a21; process, 23u24: store packed, 15a16. Live Stock Market. Cattle—Receipts. 200 head; fair sup- ply: market steady, Steers—Choice to prime, none: good to choice, 7.0028.00; medium to good, 55026.75; fair to medium, 4.2585.25; plain fair, 3.50a4.00; common to plain, 3.00a3 Brils—Choice to prime, none: good bice, none; medium to good, 4.00a fair t dium, 3.5024.00; plain 3 50, common to plain, Lef 2 5a. receipts, to ck 4.50 to 3.00a3 Ca to ck 4.00 to Choice to prime, none; good e, none: medium to good, 3.75a fair to medium, 3.25a3 i to 5.0026.00; medium to’ go: having no fixed relations to each other,” states the review, “international trade | would be in a state of chaos and do- | mestic trade would be in almost as| great confusion. In truth, the situa- | tion would be intolerabie “Most of the persons who seem read- ily disposed to try the experiment of cutting loose from the gold standard for a little flyer in inflation apparently have no conception of the confusion ! and disaster which might result know the terrible experience of Europe | with inflation after the war, but doubt that anything like that could happen to the United States.” Citing the rather violent fluctuations of the British pound sterling following abandonment of the gold standard, the review points out: h “The effects of such fluctuations in the value of a country’s mouey cannot be other than harmful. It is frue that a depreciating currency makes for rising Normal Development, Swift and Co. expects to go ahead its normal development plans in according to G. F. Switt, president, prices, he continues, have practi- ched bottom, and the current uld be a good one for the in- His own company, Mr. Swift vear sho Gustry its out, is in an exceedingly strong | fiancial position, with operating costs fubstantially reduced to meet the new level of prices, | According to an exhaustive study pre- a | Pared by Dr. Julius Bzigeti, ministerial councilor in the Royal Hungarian Cen- | ral Bureau of Statistics, Hungary's | favorable balance of international pay- ments—that is, the excess of all credits all expenses, visible and invisible— amounted for 1930 to 71,405,617 pengoe, or about $12,000000. Exclusive of Joans contracted abroad and proceeds from the sale of Hunga- Tlan assets to foreigners, the balance was adverse to the extent of more than $41500,000. Loans totaled somewhat 1°ss than $65,000,000, of which the ma- Jor portion represented long and me- dium term loans. _The above figures indicate conclusive- Iy the country’s dependence upon foreign borrowing. Fallure to secure loans last year is doubtless responsible for the one-; moratorium on the ex- ternal obligations of Hungarian debtors. (Copyright, 1832 by the Nojth American Newsoapss Alllanee, Inc.) but if a currency depreciates it becomes worthless, and if ntly fluctuates up and down, ces all business a gamble. “All countries want the price level raised, but common-sense dictates that a higher price level would be a poor swap for chaos in monetary systems and therefore in all business. Inflauox}‘ is never a way out; it is only & way in. FEDERAL RESERVE RATIO. By the Associated Press The ratio of total reserves of the 12 central banks to deposits and Federal Reserve note liabilities combined showed an abrupt drop during the week ended December 30. The ratio for comparable periods follows, as reported by the Re- serve Board: Week ended December 30, 61.9 per cent; previous week, 64.4 per cent; same week last year, 73.7 per cent. Dividend Meetings. NEW YORK, January 4 (P.—Sev- eral important dividend meetings are scheduled for this week. There is par- tieular interest in tgxee E:fim';;‘;m. road meetin 3 Other m.m:u include Westinghouse Electric, Nash Motors, American Smelt- ing & Refining, Allis Chalmers and Cerro de Pasco Copper. They | :) | merit. | market s dull and quiet, with prices 45 plain lain, 2.50a3.00 Frésh cows an Sheep and moderate su cep, 1.00a3 Hogs—Receif fair to medium, 4.00a4.5 30.0060.00. ceipts, 1,000 arket strong- . 4.00a7.50. s, 3,300 head; fair sup- market % 5.15a5.40; 4.5025.00; medium, 5.15a5.40; 3.40a4.15; light pigs, 5.0085.20; 7.40. alves—Receipts, 250 head; light Supbly; market higher. Calves, 3508 .50, d Springe 1 Hay and Grain Prices. Wheat—No. 2 red Winter, export, no quotations; No. 2 red Winter, garlicky, spot, domestic, 59; January, 59; Feb- ruary, 5 Corn—No. 2 yellow, domestic, spot, 4504 cob corn, new, 2.00a2.10. domestic, spot, starting to tities, but £ been attemy ictly on v and ed, selling Demand for old in buyers' favor at a range of 13.00a 16.50 per ton. Straw—No. 1 wheat, 8.5029.00 per ton; No. 1 oats, 9.00a10.00 per ton. FOOD COMPANY MERGER BECOMES EFFECTIVE By the Associated Press. NEW YORK, January 4—Merger of Best Foods, Incorporated, a division of Gold Dust Corporation, and Richard Hellman, Incorporated, a division of General 'Foods Corporation, has been announced. C. M. Chester, jr., and Randolph Cat- lin, presidents of General Foods and Gold Dust, respectively, in a joint state- ment said “the brands of both com- ?mies will retain their identities, but he operations of the two distributing systems will be joined.” The new com- pany will be known as the Best Foods, Incorporated, s FINANCIAL. INSURANCE BUSINESS SHOWS ‘GREAT STABILITY DURING YEAR BY ROLLIN M. CLARK. The outstanding feature of the insur- ance business in 1931 has been its sta- bility in the face of most trying condi- tions. Of unusual significance is the fact that there has not been a single failure of any large insurance company. The few that have occurred have been relatively small concerns and have oc- casioned little or no loss to their pol- icy holders and other claimants. ‘The most troublesome problem to in- surance companies has been the de- cline in security values. In this re- spect the life companies find them- selves in a different situation from that of the fire and casualty companies. The former invest chiefly in high-grade bonds, first-mortgage loans on farm and other property and policy loans, while the latter hold bonds, mortgages and large blocks of common stocks. Payments Increase. ‘The life companies have made great- er payments to their policy holders and their beneficiaries than in any previous year. Current income has gerferally proved sufficient for this purpose. These companies are permitted to value their bonds on an amortized basis if amply secured and not in default as to principal or interest. By this means they are enabled to avoid the use _of existing market values. There is ample justification for this because such hold- ings do not have to be liquidated. The fire and casualty companies, on the other hand, have ordinarily been required to use actual market values at the end of each year in preparing their annual statements for submission to the various State insurance depart- mepts. Because of the unusual situa- tiok created by the decline in market quotations, the national convention of insurance commissioners has adopted a formula this year prescribing a “fair average market value.” This action, however, was not unanimous and it is possible that several States will insist upon the use of December 31 quotations, with some leeway in deserving individ- ual cases. One problem that is likely to be en- countered by Insurance companies in the future is that of finding adequate sources for the investment of their as- sets, assuming that conditions in the financial world show no decided im- provement. Life companies, for exam- ple, have always been heavy investors in farm mortgages and in railroad bonds, although in Tecent years the percentage of their assets in these in- vestments has declined. If the outlook for these investment media does not seem attractive for the future, more funds must be placed in other forms. Diversification Suggested. A suggestion was made before & joint meeting of the American Eco- nomic Association and the American Statistical Association here this week that life insurance companies should be permitted to invest 15 per cent of their assets in diversified common stocks in order to provide them with ample sources of investment in the future. The attitude of the vast rhajority life insurance executives are against such & plan and in view of the fall of stock rices in the last two years, there s lit- tle likelihood of a change in their posi- tion at this time. (Copyright, 1932.) PRICE INDEX OFF 18 PCT. IN YEAR Grains, Feed, Live Stock and Textiles Showed Largest Declines During 1931. As measured by the Natjonal Fertil- izer Association’s wholesale price index, wholesale prices declined about 18 per cent during 1931. During 1930 whole- sale prices declined about 16 per cent. On December 31, 1931, the index num- ber for 476 commodity quotations (1926-1928 equal 100) was 65.1. A year previous the index stood at 79.7, while two years ago the index number was 95. Based on the single year 1913 as 100, the index number on De- cember 31, 1931, was 91. Upturn Fails to Hold. During the first six months of 1931 wholesale prices moved steadily down- ward. In the early Fall the decline was temporarily registed for several months and mid-November showed a substantial increase in wholesale prices, New weaknesses in prices during De- cember, however, carried the index number to the record low point of 65 on December 19. During the week ended December 26, 1931, a small in- crease of one fractional point moved the index number up to 65.1 Of the 14 groups comprising the 1 dex of 476 commodity quotations, grains, feeds and live stock and textiles showed the largest declines during 1931. The decline in the prices for grains, feeds and live stocks amounted to more than 32 per cent during the year, while tex- tiles declined about 24 per cent. Fuel, including petroleum, declined 21 per cent and foods about 19 per cent during 1931. PFertilizer materials declined 16 per cent and mixed fertilizer 15 per cent during 1931. Fats and oils de- clined 14 per cent, while building ma- terials dropped more than 13 per cent | during 1931. House furnishings de- clined almost 13 per cent during 193!. Metals dropped gbout 9 per cent and chemicals and drugs about 6 per cent during 1931. Agricultural implements declined about 3 per cent during the year. Heaviest Losses Noted. Many of the individual commodities during 1931 sold at the lowest prices in years, some in decades, while wheat at one time sold as cheaply as in the days of Queen Elizabeth. Agriculturai prod- ucts and basic raw material prices evi- denced the greatest shrinkages. Som of the commodities that showed hea: losses during the year were corn, wheat, hogs, cattle, lard, butter, coffee. silk, rayon, cotton, wool, hides, petroleum, rubber, silver, heavy melting steel, cop- per, lumber, alcohol and rosin. Brokers’ Comment NEW YORK, January 4.—Brokerage opinion, as indicated by today's Stock Exchange commission house advices, continued to take a cautious stand, in the main. Nevertheless, the market’s ' resistance to further pressure last week was regarded as encouraging. Com- ments follow: Charles D Barney & Co—From a long-range viewpoin{, there app: to be little reason for increasing margin commitments until the stock market has remained in a dull trading range for & period of time and then started a gradual advance, based, obviously, on fundamental rather than technical fac- plain | tors. We feel certain that the action |that is near the irreducible minimum. 25023.25; common to plain, |of the market itself will indicate more definitely the time to buy for the long 'rs—Choice to prime, none; good | pull than will any attempt to analyze the vast complex of fundamental. in- dustrial and financial factors. While to’ fair, 3.00a4.00; common to|we agree with the view that 1932 will |in all probability mark the transition from extreme depression to the begin- ning of gradual recovery, we do not believe it is possible to guess when the turn will come in the stotk market We would, therefore, keep long-range speculative holdings at 40 per cent or less, Thomson & McKinnon.—The mar- ket rather nervously awaits important corporate dividend meetings this week, notably, Santa Fe and Westinghouse. However, it cannot be said that the market is unprepared for disappointing news from this direction. While the market evidences no positive trend, we are encouraged over the action of bonds. Jackson Bros., Boesel & Co—United States Steel and Bethlehem Steel are scheduled to meet for dividend action in the last week of January. Omission of Bethlehem's dividend is generally expected, and it would cause no sur- prise if United States Steel's common dividend were discontinued temporarily Payment of -dividends out of surplus was continued by many corporations during 1931, but this policy does not tend to sustain market values. W. J. Wollman & Co—Those having money have opportunities now for buy ing securities at ridiculous prices, but they must be patient and not expect the recovery to come too rapidly. Hornblower & Weeks—A policy of caution at this time dictates that defi- nite evidence of the completion of the downward movement should be awaited before being in a hurry to buy stocks. St. Louis fiank Closed. ST. LOUIS, January 4 (#).—The Vandeventer National Bank of St. Louis, with capital stock of $250,000 and deposits of approximately $1,250,000, was ordered closed by its board of di- rectors early today and an assistant pational bank examiner was asked to take charge. ‘There has been & slow run on the bank for several weeks, the directors id, S C. Johmson i president of the institution. TEXTILE INDUSTRY ENJOYS GOOD YEAR Execution of Deferred Orders Plays Important Part in Trade. e — BY CHAS, P. SHAEFFER, Associated Press Business Writer. At least one bright spot on the in- dustrial horizon in 1931 was presented | by the textile industry. The subnormal volume of business in | this industry in 1930 resulted last year in considerable improvement from the standpoint of volumé and sales. This came about, the industry declares, through the fulfillment of deferred or-| ders, many of which yet remain to be| taken care of. Profits were said to re- main unsatisfactory, however, due to the prevalling lower prices and the narrow profit ranges. Cotton, particularly, improved its po- | sition. Production, sales and shipments have all been at higher levels than in {1930, while the trend of inventories has been definitely downward during the year, Prices have moved downward dunni the period, but the descent has been less pronounced than last year. Output of the wool industry for the year appears to be larger than in 1930 despite lower production during the last few months, The price situation in this industry is less favorable than in cot- ton, due, it is said, to an almost reck- less sacrifice in prices to meet the limited market offered in this field. Silk and rayon have done particularly well during the year, with the latter operating at nearly capacity levels. Silk was hurt to some extent by the up- heavals in China and in Japan which resulted in violent fluctuations in the raw market. Just now_the chief diffi- culty appears to be calling a halt on the declining raw market, caused by overzealous competition of producers. Commodity Price | Trends of Week BY H. N. McGILL, Editor McGill Commodity Service, Inc. AUBURNDALE, Mass., January 4 (#)—The closing week of 1931 brings a new low point in the downward trend of commodity prices. Out of 14 individual groups, five were lower, six increased and three re- mained the same. The index for the month of December will also show a decline, as out of 224 commodity price comparisons, December 31, against De- cember 1, 56 declined and only 36 in- creased. Industrial prices showed resistance against the downward trend and showed a fractional increase over the previous week. The groups influencing this slight firming in prices were fuels, paint materials, fine and coarse textiles, and vegetable olls. Building materials, hides and leather, and non-ferrous metals were lower, and chemicals, fer- rous metals and paper remained the same. In recent months industrial prices have shown outstanding ability to resist the generally downward trend. | From January to December, industrial | prices declined 17 per cent. During the | first six months of the year the decline | was 13 per cent, and from June to De- cember only 4 per cent. During the past year industrial activity has de- | clined to a point more than 30 per cent below normal and many major indus- tries are running at a rate of capacity Security prices have been drastically deflated, and commodity prices are at a point com?firnble with the year 1911. Fundamental conditions would indicate that rock bottom has been reached and that the next broad movement can only | be upward, even though this may de- velop slowly. Agricultural prices resumed their downward trend after two weeks of re- sistance to bearish pressure, and have | reached a new low point. Unlike indus- | | trial prices, this group has shown an| almost continuous downward _ trend. | From January of this year to October, | agricultural prices declined 21 per cent. | A sidewise movement was n evidence | | during October, and a good rally oc- curred in November, which lasted only | three weeks. Since that time the de- | cline has been renewed, and the index | now stands 23 per cent below the first of the year. Live “stock prices during the past week showed the greatest decline of any of the groups. From January to June live stock prices declined 28 per cent. | During the latter part of June and early | July a rally took place, and then a side- wise movement was in evidence until the first week of September, when a de- cline again was renewed. At the pres- | ent time the index for this group stands | at 43 per cent below the first of the! | vear. | Most important price changes in the Jl\ga;%)llll:;:ekly commodity price indices— Previous Year All commodities . Industry Agricultu Live stoc! Expansion Program Planned. NEW YORK, January 4 (#).—John E. Zimmerman, president of the United Ges Improvement Co., announced today that U. G. I. subsidiaries would spend more than $28,000,000 in 1932 for plant ! additions and improvements. i EARNINGS REPORTED." NEW _YORK, January 4 (#).—Per shore earnings Of corporations report- ing last week included | | for by Japan. BANKING MERGERS BECOME NUMEROUS Year Marked by Many Con- solidations of Capital Throughout Nation. NEW YORK, January 4.—The year 1931 will go down in banking history as an eventful period of readjustment to the worldwide economic depression. The depreciation of commodities and securities, along with heavy liquidation of credit, a tendency toward hoarding in some sections, wide fluctuations in foreign exchange and gold withdrawals, wrought many changes in institutions and in banking practices. Formation of the National Credit Corporation was undertaken late in the year as a result of recommendations made by President Hoover, to provide assistance from a huge central pool to }mnxs whose assets were temporarily Tozen, Many Mergers Arranged. The year was characterized by many failures and closings, voluntary as well as_involuntary, and by a number of important mergers. There were some large consolidations and some of the huge expansion programs from 1930 were continued. The Mellbank Cor- poration is an example of the way some banks expanded. This Mellon- owned corporation continued to add to its sfstem of banks in the West Penn- sylvania or Pittsburgh trade area. New York State banking institutions, excluding credit unions, personal loan and loan and savings associations, as of eptember 30, numbered 492, which contrasted with 546 as of December 31, 1930. Of the 1931 total 190 were banks, 147 trust companies and 146 saving banks, compared with 206, 158 and 149, respectively, at the 1930 year end. The latter total also included 33 private bankers who were somewhat reduced in number during 1931. During the year approximately 25 State institutions were closed. None of the closed institutions in New York State were savings banks. Twelve State banks and trust companies merged. Deposit liabilities and other creditors at the close of 1931 in State institutions that were closed either during 1931 or in 1930 amounted to $283,101,122. This cludes some banks involuntarily closed at the end of 1931, as well as seven credit unions and three private bankers. he liquidating dividends paid out by [such institutions during 1931 approxi- mated $65,763,293. Payments to other creditors amounted to $35,324,214. Market Movements Wide. Bank and trust share fluctuatios 1931 attracted widespread It(enlionrtsb.-m cause (1) their advances or declines invariably preceded buying or selling movements in general security marts; (2) the public, for the first time in any panic period, held substantial amounts of such stocks; (3) their market de- preclation, on a percentage basis, was second highest of any important se- curity division, being exceeded only by investment trusts, and (4) dividend re- ductions, approximating 6 per cent, in bank and trust shares were the smallest in a list of 30 security classifications. The peak of bank and trust stock averages was reached on February I7 at 82.4, or nine days before other shares attained their 1931 maximum. The high point was attained after their climb from the valley of 67.7 on December 17, 1930, which compared with the 1930 summit of 155 reached on April 1. From the 1931 top the market went through a series of intermediate swings until it hit a low average of 35.5 on December 17 last. In other words, bank and trust stock averages from their maximum to their minimum in 1930 and 1931 registered declines of 56 per cent and 61 per cent, respectively. The following table shows the price range of eight New York bank stocks: Loss 1930 in low, points. 9 40 192 2 75 51 3325 1735 395 4 1931 Institution. low. Bankers' Trust.. 49 Central Hanover 109 Chase National.. 24} First National.:.1.600 246 1412 Guaranty Trust. Manhattan Co... 23!z 64 National City... 34'2 80 Volume of Trading Loss. Market activity of these shares in the over-the-counter houses here in 1931— such houses are connected by wire serv- ice with Boston, Hartford, Philadelphia, Chicago, Pittsburgh and Detroit—was about one-half that of 1930, or a daily average of 50,000 shares, and about one« third of the daily volume in late 1929. It is estimated that 95 per cent of the selling of bank stocks in 1931 came from individuals. The only large-scale public participation on the buying side came in the Spring. Bank shares do not have the *“cushions,” but are pro- vided by short sales, the only continual buying support coming from the ine stitutions themselves. Such market pur- chases ultimately were taken either by the institution's officers or by their customers. Irving Trust (Copyright, 1932.) Grain Market By the Associated Press. CHICAGO, January 4 —Influenced by weakness of securities and of cotton, the grain markets suffered early downe turns today. Molsture in drought regions of domestic wheat territory, both Viin- ter and Spring, gave added impetus to sellers. Opening Y4-% lower, wheat afterward sagged further. Corn started !a-1; off and continued to point downward. At about 1 cent a bushel setback, wheat received better buying support owing more or less to an estimate from a trade authority that feeding of wheat to live stock in the United States during the lest six months had total:d as much as 129,000,000 bushels. He figured domestic farm stocks December 31, however, as 235,000,000 bushels, and supplies in mills and elevators as 88« 000,000 bushels. A bullish construction was placed on announcement that wheat afloat for European countries amounted to 20,816,000 bushels, against 31,104,000 a week ago and 27,272,000 at this iime last year. Japanese requirements of Uniteq States wheat this season were forecast as under those of last season. It was shown that in two months Japan's wheat imports from this country totaled considerably below the figures for the same period in the two preceding years, whereas Australia had gained, and thaf significant quantities of new crop Australian wheat have been contracted Bears laid stress also on word that Germany's acreage of Winter wheat and of rye had both been augmented. Corn and oats sympathized with wheat weekness. Provisions were responsive to hog market declines. Special Dispatch to The Star. NEW YORK, January 4.—Opening cotton prices today were 7 to 13 points lower in heavy liquidation from com- mission houses and an absence of foreign demand. The neéw troubles in India were construed as bearish for American cotton export prospects. nuary opened at 6.26, off 7; March, 6.35, off 9: May, 6.46, off 10; July, 6.65, off 12; October, 6.91, off 12, and De« cember, 7.04, off 13. AL LRV November Lead Output. NEW YORK, January 4 (#).—Amers Year ended September 30— 1931 $1.43 0. 98 17 08 i 193 $19. 3 L] ican Bureau of Metal Statistics esti- mates November world output of ree ed lead 119, at short tons, against 117,084 in October and 144,835 in No- vember, 1830, ‘