Evening Star Newspaper, January 17, 1932, Page 55

News of Markets Pages 1 to 4 FINANCIAL AND CLASSIFIED he Sunday Star 7 Classified Ads Pages S to 11 Part 6—12 Pages WASHINGTON, D. (., SUNDAY MORNING, JANUARY 17; 1932, SUBSTANTIAL GAN NOTEDBYW.R.&E. IN ANNUAL REPORT Surplus Income Up $153,394 in 1931, President Ham Tells Stockholders. TAXI COMPETITION CUTS DOWN GROSS EARNINGS Officers Re-elected—Bonds Popular on Exchange—Record Turnout of Bankers Forecast. BY EDWARD C. STONE. In his anpual report to the stock- holders of the Washington Railway & Electric Co., yesterday, President Wil- Jiam F. Ham reported surplus income | for the year amounting to §2,023.437.37, | an increase of $153,394 during 1931. The traction president also reported a balance for the year credited to profit and loss of $1.221454.04 His statement showed a decrease in gross earnings from operations of over $271.000, but there was an increase in miscellaneous income, including _divi- dends from the Potomac Electric Power Co.. of $149,806.60. The corporation also made a cut of $§250.341.85 in operat- ing expenses, which played a vital part in the company’s net gain in income during the yea Washington Railway & Electric’s con- densed statement for the year 1931 gives the following picture of the year's financial activities. Comparisons With Previous Year. Increase or decrease. i 1031 Gross earnings from operation $5,267.270.13 *$271,033.63 | Miscellaneous income Gncluding vi- r 1.851.004.81 7.136.274.94 149.806.60 *121.227.03 | | 4.483.391.91 *252.341.85 ( el | ©ross income (less | operating expenses, 2,654.883.08 131.114.83 on tinded and unfunded debt 631,445.66 *22.279.11 Surplus__ inco for the yea: *Denotes decrease. Disposition of Surplus, Surplus _income for the year dd* miscejlaneous rofit and loss ad- ustments . 3 Loss: ) Pavment of §% div- idend on preferred tock me, T00$2,023.437.37 $153.394.00 | 1931 £2,023.437.37 78.016.67 £2,101,454.04 | 5 . ... 3425.000.00 Payment of 7% div- idend on common stock . 000.00 Balance for the year cred- ited to profit and loss...31.221.454.04 Taxi Competition Cuts Earnivgs. Study of the reports shows that the keen taxicab competition during the latter months of the year made a severe inroad into earnings. The officials of the company have hoped that the Pub- lic Utilities Commission would place more regulation upon the taxicab bus ness in the city, but the situation still remains the same as it has been since the low-rate taxis began operations. The annual meeting ‘of the Potomac Power Co. was also held yesterday, as the two corporations have the same | officers and directors. After presenting | his financial report for the Washington Railway & Electric Co., President Ham made no extended comments regarding | the figures. With the Potomac Power rate matter before the courts, Mr. Ham deemed it unwise to go over the details | of thesituation at yesterday's meeting. He will report soon on the rate status. The board of directors was elected, consisting of Woodbury Blair, Edwin C. Brandenburg, Daniel J. Callahan, F, W. Doolittle, Robert V. Fleming, Julius Garfinckel, Edwin Gruhl, William F. Ham, Robert N. Harper, Cloyd H. Mar- ¥in, Lennard H. Mitchell, Clarence F. Norment, Eugene E. Thompson and Harley P. Wilson. The directors met immediately and elected their officers for the ensuing year: William F. Ham, president; S. R. Bowen, vice president | and general counsel: A. G. Neal, vice | resident and controller; H. M. Keyser, ecretary, assistant treasurer and coun- gel; J. E, Tenly, treasurer; H. G. Hay- don, assistant controller; Willlam I Clarke, _assistant secretary-treasurer, snd H. W. Kelly, assistant secretary No changes were made in the legal and operating staffs of the railway or Potomac companies. At the meeting | , 133,912 shares were represented in per- | son or by proxy. Trading on D. C. Exchange. Bonds got all the attention in the week’s closing trading on the Washing- xchange. The sales: 6s “A”—$100 at 10075, $1,700 at 100. $100 at 100', £880,000.00 hington 1007« n Gas 6s “B" $1,000 at 60, $1,000 | $1,000 at 60 | ies were called off urday and very few | noted. The high- | on the board is which is quoted at 2 Washington Gas Light 1ave been the most active | ar list and Washing-' ic preferred has been the leader in the stock division. Record Attendance Predicted. indicated the largest | sbankers on record Midwinter open meet- takes place tomorrow | evening at the Willard, Secretary F. P. | H. Siddons being swamped with notices | from those expeting to be present, | Several special guests have been in- | vited. David Lawrence, editor of the United States Daily, is always heard with unusual interest. President C. H. | Pope will preside In addition to the chief address, sev- eral important reports will be presented by committee chairmen and heads of assoclation sections BOSTON WOOL MARKET. Epecial Dispatch to The Star. BOSTON, January 16.— Various des of French combing wools were actively sold at the close of the week in the Boston wool market, comprising the bulk of the business. Graded wools of this type moved at 52-55 for choice Jots, while original bag lines brought 52-53. Lines containing short French combing and cloth'ng staple realized 50 cents. California French combing was available at 45-47. Medium graded wools and fleeces were relatively quict. Fine territory combing clean was quoted today at 57-58, French combing 53-54, half-blood 54-55, three-eighths blood 48-50 and quarter blood 41-43. Pine Ohlo fleeces were quoted at 23 2415, grease basis; half-blood and three- fllh;-hl bloog 23-24 and quarter blood 21-22. t 60 attendance of I at any of thi ings. The mee | crease, FOREIGN TRADE OF U. S. DROPS TO LEVEL OF 1916 Favorable 1931 Balance of Less Than Half of Mark Set for Year The Commerce Department said yes- terday that the foreign trade of the United States in 1931 dropped to a new post-war level, with imports tre lowest, since 1916 and exports the low- est since 1914 The official figures of the depart- ment revealed that, although there was a favorable balance of trade of $334.- 076,000 for 1931, it was less than half as large es in the preceding year. Exports dropped from $3.843.181,000 in 1930 to $2424183000 in 1931, a reduction of $1,418,998.000. Imports for 1931 were worth $2.090,107,000, a decrease of $970.801.000 from the 1930 total of $3,060.908.000. A pick-up in imports was noted in December, but decrease was likewise noted for American exports. Reaction From Abroad. Dr. Julius Klein, Assistant Secretar? of Commerce, explained the import gain was probably a reaction from the depreciation of currency abroad. “The figure for December imports probably reflects the beginning of ar ticipated larger imports from Europe. Dr. Klein said, “facilitated by a fo eign exchange depreciation. The in- however, was not as great as observers had expected.” FEDERAL RESERVE POLICY SEEN STEP TOHALT DEFLATION Easier Credit Regarded as | Implied Intent in Cutting Rates for Bankers’ Bills. 334,076,000 of 1930. ‘mrim are emergency measures and {t is held unwise to build plants in the | country which would be forced to face strong foreign competition when the | tariffs are withdrawn.” As to the outlook for foreign trade |in" 1932, Dr. Klein said, “It is at best indefinite.” ¢ commerce executive asserted that | recovery from the world-wide depres- sion “undoubtedly must begin in_this | country because it has a more resilient {and mobile economic _structure, which is better able to arjust itself to chang- Ing_conditions.” 5 | "He said he believed “the domestic situation will, however, feel the effect of any unforescen changes in Europe.” | "In his opinion tbe reconstruction finance corporation bill will be a “po- tent influence in preventing further ill act as a “cushion shocks from European | economic developments and as a seda- tive for jagged nerves.” December Figure. Foreign trade figures compiled by the department showed that December exports totaled $184,000.000, as against | $274,856,000 ~in December, 1930, and $1935555,000 in November. With the exeeption of July and August, the De- cember figure was the lowest since Sep- :TIME IS BELIEVED RIPE FOR STRATEGIC ACTION Stocks and Bonds Enjoy Best Re- covery in Months as Pressure Is Lifted. R N BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, January 16—The im- | plied “intent of the Federal Reserve Board in reducing buying rates for | bankers’ bills this week is that a step is being taken in the direction of easier credit, or away from the process of deflation that has been going on for over two years, toward one of moderate inflation. This has not so far been | supplemented by a lowering of redis- Speculation Is Rife on Suc- I. J. Roberts Appointed Head| | Rumors that E. T. Weir, president of | be offered the position are also dis- A sharp rise in imports, he continued. | tember, 1914, when tre amount was had been considered probable, but that | only $156,100.000. there had been a “sharp shrinkage in | December imports rose from $149, the buying power of this country.” He | 725000 in November to $153,000.000. as pointed cut that much of the mer-|compared with $208,636.000 in Decem- chandise that came over in December |ber, 1930. The December amount was and that is arriving now was con-|the lowest, with the exception of No- tracted for before the exchange factor | vember, of any single month since Sep- entered the situation. tember, 1915, when the total was $149, Discussing conditions in Great Brit- | 200.000 ain, which has been the best customer | The favorable balance of trade in of the United States in recent months, | December was $31,000,000, as against a the Assistant Secretary said that be- |favorable balance in December, 1930, of cause of “the extent to which the pur- | $66.220.000. chasing power in England has declined, | ~ Gold exports for the year went up to it is difficult to estimate the effect on | $466.794.000, as against only $115967.- American exports of such individual | 000 in 1930, a gain of $350,827.000. Most factors as the buy-British-goods move- |of this increase has been attributed to ment, - protectionist tarifis, the de-|a “raid on the dollar” in September and preciated currency, together with the October. extension of American branch fac-| Imports of gqld for the year showed | tories in Great Britain.” | a gain of $216,065.000, from $396. Y | 009 in 1930 to $612,119,000 last year. At Best Indefinite. | silver exports last year were vaiued He said the branch factory movement |at_$26.485,000, as compared with $5¢.- in England had not received the im-| 157,000 in 1930, while imports were $28.- petus that was expected “partly—and | 664,000 in 1931 and $42,761,000 the pre- this is important—because the British ! ceding year. HEAD OF UL STEEL INSTITUTE PLANS PUZZLESINDUSTRY ANNUAL BANQUET | | of Committee for Feb- ruary 13 Session. cessor to James A. Farrell. By the Associated Press. 1. J. Roberts, assistant cashier of the NEW YORK, January 16.—The steel | Riggs National Bank, has been ap- trade continues to buzz with gossip over | pointed chairman of the Banking In- the probable successor to James A.|stitute’s 28th Annual Banquet Commit- Farrell as president of the United | tee, by Aubrey O. Dooley, president of States Steel Corporation, but high| Washington Chapter. Other members officials of th2 corporation” have main- | of the committee have also been named tained a discreet silence. Mr. Farrell | for the event, which takes places on recently announced his retirement as Saturday evening, February 13, at.the of April 18. ‘Willard Hetel, . 1t is expected in usually well-informed r. Roberts is a former president of steel quarters that the new president of ston Chapter, has ed as the Jargest steel company in the world rman in previous will be a technical man taken from the in a large measure with! ranks of the company. of last year’s dinner. The! Names most frequently mentioned of | vent, the chief social event of | late are those of Eugene P. Thomas, vice | the institute, brings to- president of United States Steel, and I. rge groups of both senjor and Lamont Hughes of Pittsburgh, president officers. of the Carnegie Steel Co., one of United The Program Cemmittee is already States Steel’s leading subsidiaries. functior and has tentative plans for Dow, Jones & Co. reports that one | special entertainment features, a guest name being mentioned in Middle West- | of honor of national prominence, and a ern steel circles is that of Sewell Lee |speaker of outstanding ability. Last Avery of Chicago, now president of the | year President Stevenson of the Ameri- United States Gypsum Co. Mr. Avery|can Ba; ' Association attended the was made a director of United States | dinner, & id also the national head Steel last July, taking the place made of the in: tacent ml')) the death of George F. O e AN Rumors that Myron C. Taylor, chair- | _Others on the committee are Frank man of the steel corporation’s Finance | M. Perley, American Security & Trust Committee, might also take over the | Co. and Miss S Winifred Burwell, Na- presidency, are completely discredited in Metropolitan, vice chairman; ouarters close to the steel corporation. T M. Krieg, Riggs Na- Miss Gertrude G. National, assistant secre- Earle McGeary, W. B. treasurer. The other | ee members include: Barker, Morris Plan; ¢ ggs; H. W. Burn- m A. Cady, Ameri- can’ Securi Jesse Chaney, Com- mercial; F > Cook, District; F. H Cox, Commercial; George R. Flemer, etropolitan: ¢ ance D. Fogle, ges: A. E. Henze, W. B. Hibbs & Co.; Lloyd Hv Northeast Savings: Hen F American_Security Claude W. Riggs; Robert H Frank W. Lee, Mount | Junior b: the National Steel Corporation, might credited in these quarters. ACTIVITY IN STEEL IS REPORTED QUIET Auto Manufacturers Delay Orders to Await Public Response for New Model Cars. Banquet Con Willard_ G enneth Bir side, Riggs ncoln; T. Hunton s & Commercial; nion Trust; Rich- neoln; Stuart S. Ogil- itional; Nathan Poole Robert M. Poole, Riggs: Mabel V. Royce and Rose L. Royce. Washington Loan & Trust; Wil- liam F. Russ, Munsey Trust; W. L. Sanderson, Federal-American. Paul J. Scltzer and A. W. Sherman, American Security & Trust; Robert A. | Sisson, W Savings; James A. W hington Lot ;- RZ;?:;;(:; L. Weber, ational Lois A. White, Fede H. Whitton a G. Whitton, First National Alexandria, Va.: Mildred C. Woodcock, American Secur- ity & Trust By the Associated Press NEW YORK, January 16.—Slight in- creases in steel activity have been less than recent conservative trade predic- tions and the slowness is attributed partly to a disposition of automobile manufacturers to await public response to new models before anticipating re- quirements 3 For the week steel ingot production was estimated to have increased a point to above 25 per cent of capacity. Hopes for future expansion are said to be based on anticipated improve- ment in rail buying. Pig iron was quiet, with slight easiness in Southern prices, but * elsewhere markets were steady. Export demand for copper, which had fmproved late in the previous week, tapered off following declines in Lon- don and the market became dull Tin was firmer, reflecting partly ad- vances in London and lessening pres- \GROUP INSURANCE RECORD MADE BY EQUITABLE LIFE {sure of domestic resale offerings below | The Equitable Life Assurance Society an_import parity. reports that, despite the business de- Demand for lead expanded to the | pression in ‘1931, its group insurance best proportions for several months, | premium income established a new high with buying for prompt and February record in the history of the company. chipments in excess of daily produc-|The 1931 Tecords in group insuramce tion, | business are: For group life, $127,510,- Buying of moderate quantities of | 043; and, on the basis of volume red- zinc by large consumers in prompt |its ‘adopted by the soclety for group positions developed at lower quotations, | disability, $14.821463, and for group but demrnd for more distant delivery |annuities, $9,727,122. was resiricted, with somewhat increased | selling pressure reported. Antimony was quiet and steady after recent purchases absorbed the more pressing offerings. NEW YORK CLEARIN{} HOUSE NEW YORK, January 16 (#)—The| weekly statement of the ¢ 3 5 S 1c1¥mn]z S T g |~ Total surplus and u: $4,625,000 Gold Received. | $1,028,309,400, unchange NEW YORK, January 16 (#).—Gold Total net demand de| transactions today consisted of an im- | $119,190,000 decrease. port of $4,625,000 from Argentina, ac-| Time deposits (average) cording wkthe New York Federal Re- mcrlewfixgs s serve Bank statement. Clear week ending toda & There were no exports and no net | 225735, J Y, $4,282, change in gold earmarked for foreign!| Clearin Ngs week account. 01361505, . hUng January 9, divided profits, ed. Posits (average), $8,306,000 Y | nizing = | count rates or by purchases of Gov- ernment securitics. The amount of the latter in the Federal Reserve portfolio has recently decreased instead of in- creased while bills discounted have re- mained stationary. Undoubtedly a new banking method or philosophy has been adopted by the central authorities, who have timed it with the cessation of liquida y member end non-member inst and expects to promote it through such agencies as the Reconstruction Finance Corporation. It also coincides with a strong undercurrent of confidence in an adjustment on German credits that will be helpful, if not entirely satisfactory, to creditors here and abroad. Recoy leadership both in Washing- ton end in financial centers that had | been ccnspiculously absent during 1931, the investing and speculative public have reversed their positions in the market, and with pressure lifted, stocks and bonds have enjoyed the best re- coveries in months. Strategy Well Timed. Unquestionably the psychological mo- ment has arrived for the strategic move initiated by the Federal Reserve authorities. ~The degree of deflation in commodities, in securities and in loans to brokers as well as those held by banks had approached, and in some items exceeded, that of other major crises. Most of the banks at the end of the year had “put their houses in order” to the detriment of the bond market and of many of their best bor- Towers in pursuing a practice which the controller of the currency ought to deprecate rather than to encourage. They were in a position, therefore, after the turn of the year, to resume their normal functions, and having adjusted their financial structure to the effects of a price cyclone which swept away about $175.000,000 from the assets of three prominent security affliates, to consider those responsibilities attached to chartered lenders. Liquidation of credit had been on an enormous scale and far in excess of that required to bring the financial structure back to a sound basis. From figures that have just appeared in the American Bankers' Association Journal it is shown that between September, 1929, and September 30, 1931, there was a reduction of 91,000,000, or 20 per cent, in the sh term credits of Federal Reserve member banks and y reported er amount would be indicated if the combined reports of the banks as of December 31 last were available, as some of the heaviest liquidation oc- curred in the final quarter of 1931. Reflecting this deflation were prices of railroad securities, less than a fort- night ago, lower than they had been for a half century; farm prices that have not been approximated in 30 years and ouotations for various other commodities below those known to living men. Obviously, the time for a material regeneration had arrived. Important Dividend Meetings. There have been no unsettling divi- dend changes this week: a few have been even hetter than anticipated. The important meetings at which recogni- tion may be given to improved credit prospects occur in the second half of the month and include those of the United States Stel, Pennsylvania Rail road and Bethlehem Steel companies. 1t is not unlikely that they and others will determine the rate of dividend next to be paid by the outlook for the | | future rather than on failure to earn | their dividends during 1931 There is every reason to believe that the corporation bond market has seen its low levels. It is not 5o certain what he outcome of proposed Government financing is to be on outstanding Treas- ury obligations. Although these are at the base of the credit structure of the country, they have been pitifully. weak at times recently. In his special me: sage to Congress on January 4, Pre ident Hoover stated that “the recent depreciation in prices of Government securities is a serious warning which reflects the fear of further large and unnecessary issues of such securities.” Since this was delivered all classes of Government loans have touched the lowest prices in a decade, with the latest long-term issues at a discount of about 18 per cent. An Infl\';]ence inimical to the market for these loans has been that of “short selling.” ‘There is an old slogan that one should not “sell the United States short.” Recently it appears to have been a rather popular pastime. If there is any warrant for it at all, it is the foar that a reckless borrowing policy by the Government may compel additional | loans at rates of interest éxceeding the yields on existing loans and that, in- stead of *balancing the Government budget through measures of economy, the United States debt will expand to the extravagant proportions reached in those countries that have gone off the old basis. : The sharp political division in the coming campaign may grow out of two opposite philosophies in the field of economics, the one contending for an easy road for the taxpayer, which might be popular with the masses, and the other for a rigid adherence to the prin- ciple of meeting debts by curtailing governmental and municipal extrava- gances. The issue is one that has been Clearly promoted recently and is likely to be fought over with as much intens- ity as those relating to prohibition, the tariff and international debts, (Copyright, 1032.) Steel Operations Gain. NEW YORK, January 16 (#).—Dow, Jones & Co. estimate that Youngstown Jistrict, steel plant operations next week :vjflfi l‘;e !:c .’Mp per cent of capacity, an increase of 3 per cent over the current week. SNEAK OUT \F THEYD LET AUTOMOBILE SHOW DECLARED SUCCESS Attendance and Sales Both Exceed Records of Last Year. BY HARVEY ANDERSON. Special Dispatch to The Star. NEW YORK, January 16.—“Happy days are near again” i the chorus heard on all sides on the closing da)" of the National Automobile Show, as manufacturers, dealers and the public unite in acclaiming it one of the most successful exhibits of the motor in- dustry in several years Not only did the attendance exceed last year's show by more than 35 per cent, but the actual sales were greatly increased for a number of lines of cars. The public response, in the words of S A. Miles, show manager, was Te- markable. The Show Committee of the National Automobile Association _ex- pressed itself as “more than gratified” with the results. It was reported that there were visi- tors at the show from every State in the Union. Large delegations of dis- tributors, sales managers and dealers left the city today for their home cities with the conviction that the auto- motive industry is now in a position | to lead the country out of the slough of depression on the upward trail to wore prosperous times. Crowds End Tension. Mr. Miles summed up the week’s ac~ complishments thus: “The show arrived at a tense in- dustrial moment—when full of uncertaintly regarding what the public reaction would be in the matter of purchasing the products of America’s largest manufacturing incustry. “The first big question was answered a few hours after the doors were opened, when it was seen that the attendance was breaking last year's record by more than one-third. “The second question, of whether or not the public would buy cars, received a most encouraging answer. Exhibitors began tc report sales from the very be- ginning. Both in actual sales and in negotiations entered into for trade-ins, last year's exposition was surpassed con- siderably.” Heads of several motor companies declared emphatically that they saw signs of returning confidence on the part of the buying public and that the impetus given the industry by the New York show and other shows throughout the country will assure a satisfactory volume of production during 1932. Must Overcome Fear. Alvan Macauley, president of the National Automobiles Chamber of Com- merce, sounded the keynote of the week in an address before the Mer- chants’ Association of New York when he said that “the co-operation of all business can bring about a return of public spending, effacing the fear and hysteria which now hold the con- sumer’s dollar in check.” “It is the fear of buying new things which must be overcome before we can have a return of prosperity,” Mr. Ma- cauley asserted. “We cannot bé pros- perous if people do not buy. and it is the action of each individual person in loosening his frozen dollars which will create the great buying waves that this country so urgently needs.” On Monday the Brooklyn show, twenty-first of the annual series, will open at the 106th Infantry Armory, continuing until January 23. It is heid under the auspices of the Brooklyn Motor Vehicle Dealers’ Association. The Newark show opens today, to con- tinue until January 23. The middle- western section of the show will be beld in Chicago from January 30 to February 6. (Copyright, (Reported by Chi Rate—Maturity. 23%s June 15, s’ Mar. 15! i 100 1-33 100 1-33 the air was | Everybody’s Business Financia) Prestiga of League o Nationselipolved) in Bulgarid's Fiscal Crisis. BY DR. MAX WINKLER. Special Dispatch to The Star, NEW YORK, January 16 (N.AN.A). —What Versailles proved to Germany, key, Trianon to Hungary, Neuilly has proved to Bulgaria. There is only on | no_salvation. Bulgarians, “the Yankees of the Balkans,” were sufficiently short-sighted to choose the wrong allies during the Great War. Bulgaria’s sice lost. An indemnity was imposed upon the coun- lry amounting to $434,250,000, equiva- lent to about $80 for each man, woman | and child living in this tiny and great- ly impoverished Balkan kingdom. Expressed in terms of the country’s | own currency, the per capita burden of reparations is equivalent to 10,536 leva. A United States Senator suggested that the Germans reduce their daily con- sumption of beer by one glass and, | presto, she will be able to pay repara- | tions. What would he suggest to the Bulgarians? Perhaps one smell less of attar of roses, which is one of the | country's principal products. Met 1925 Agreement. Despite continuous warfare with her | neighbors and resultant economic and fiscal difficulties, Bulgaria has met her obligations promptly and faithfully. It was not until the outbreak of the World War that she found it necessary to suspend payments. In 1920 negotiations were entered eign creditors with a view to settling this question and removing from the nation the stigma of default. An agree- ment was finally reached in 1925 pro: viding for the payment of interest on the various loans held abroad, in the 42 per cent of the coupon, with pro sions for an increase in these percent- in full. The nation has carried out the of ‘this arrangement most meticulously. The only appreciation shown by foreign creditors has been the persistent selling to a very considerable extent arg in- dicative of impending default. The world-wide economic depression has not spared Bulgaria. Despite rigid economies, she has been finding it diffi- cult to make ends meet. She has ap- pealed to the League of Nations for financial assistance. She may get it If she fails, she will be obliged to an- nounce that her present financial situ- ation does not permit of the payment of interest and sinking fund on all her foreign obligations. Must Follow Hungary. Bulgaria, therefore, will have to adopt a method to which her northern neigh- bor and former ally. Hungary, took re- course a short while ago—that is, she will_have to deposit Bulgarian money in the national bank, to be transferred and made available for her foreign creditors, as and when conditions allow. Bulgaria has outstanding in the American market two issues aggregat- | ing about $17,500,000. Her entry into the American market for financial ac- commodations took place in 1927, when a 7 per cent loan of $4,500,000 was underwritten by an American banking syndicate for the purpose of providing, among others, funds for the settlement of about 120,000 Bulfarian - refugees from other countries. Proceeds were to be expended under the direct control of a commissioner appointed by and re- sponsible to the League of Nations. In the following year, Bulgaria ob- tained in the Amecrican market a 715 per cent loan of $13,000,000, proceeds from the sale of which were allocated for various governmental purposes, in- cluding liquidating budgetry deficits. There is no doubt that the successful marketing of the above loans was due to confidence which the investors placed “|in the ability of the League of Nations to look after their interests. The League would thus n&pur to have a certain mor,l obligation toward those into with representatives of her for- | St. Germain to Austria, Sevres to Tur-| | | | | terms | RESTORATION PUT UPTOINDIVIDUALS Advertising Held Means to Start Motion to Better Business. “The only thing that will restore business as a whole is for each and | thing left to the conquered—to expect | every one of us to restore his own busi- ness,” declares Earnesto Elmo Calkins in Agvertising and Selling. “Advertising has not lost its power. These are the same people Who were such enthusiastic customers two years ago. They still must live. have the same wants and desires. We got them to buy through advertising when money was plenty. Do we expeci them to buy without advertising when money is scarce? Still Use Advertising. “Nearly every business that has been determinedly and confidently pushed this year has succeeded and has made money. Some of them are retail stores and some are manufacturers. They still believe in advertising. They are still confident of the future. They know some people have money, they ask for it and they get it. They are little spots of prosperity in a sea of depres- sion, not enough yet to leaven the whole lump. “But if each shop and store and factory and service station will endeavor to sell with all its might and main, and use advertising with the same courage and confidence it did when business was good and pgople were buying with- out urging, these little spots will soon cover the country and business will be good. “All wealth comes from dollars in motion, rolling around the country, buying goods at the retail store, going most appreciated -currency specified in | On back to the factory to buy more the bonds, at rates varying from 30 to | 8oods, paid by the factory to its work- men or for more raw materials, spent by the workmen for goods at their 3 retail ages until the original rate is restored | stores. Advertising Is Ne . “The only known way to set dollars in motion is by advertising, by making the goods or service so tempting, so of Bulgarian issues down to levels which | desirable, so needed that they will bring in the dollars of those who still have them and thus supply dollars to those who now have none, so they, too, can buy things. “Advertising will do that if we put our whole soul into it and put good merchandising behind it. We must be- lieve in our own advertising if we ex- pect others to believe in it. “If a million storekeepers do this now it will put business in high gear —not immediately, there is nothing miraculous about it—but it will be motion and that motion will be for- ward and upward. And that is ell that's needed.” —_— | x‘h?t purchased securities sponsored y_it. If the League should fail to make necessary arrangements to tide Bulgaria over the present difficult period, and if default should result because of such failure on the part of the League, the prestige of this body would suffer im- measurably. Politically, it has not al- ways had the smooth sajling which its most ardent adherents anticipated. Financially, however, the League may be said to have been eminently success- ful. It has been responsible for the rehabilitation of Austria, the recovery of Hungary, the restoration of Greece, and the renascence of Bulgaria. De- fault on a League loan would be highly regrettable It is hoped and expected that Bui- garia will not be forced to adopt the extreme measure. Those identified with the origination and distribution of the country’s obligations among investors in all probability will do their utmost to extend temporary assistance to a They still | FUROPE'S BUSINESS SHOWS CONCERN IN REPARATIONS PACT Orderly Agreement or Hard Struggle at Lausanne to Be Factor. OTHER NATIONS LOOKING TO FRANCE TO TAKE LEAD simistic Despite No Real Improvement. Srecial Dispatch to Star. NEW YORK, January 16.—Cable and radio dispatches to the Business Week give the following survey of business abroad for the week ending today: Europe.—Whether reparations end in on orderly agreement or after a strug- gle which could easily precipitate a series of further crises is a major worry to world business. On France rests the major decision. Britain is mildly optimistic over the outcome of pending conferences; has prospects for better domestic business. Italy wants an end _ Teparations; is industrially less France is changing govern- trying to delay a definite deci- sion on reparations until after elections, playing for a better bargaining position abroad, facing rapid industrial decay at home. A Bulgarian moratorium is like- Iy to be fcllwed by several measures in Greece, Jugoslavia and Austria. Germany is helpless. France Not Uneasy. Paris.—If there is any uneasiness in Paris, it is due to no fear concerning reparations themselves (France intends to pay her war deSts only proportion= ately to reparation receipts). Rather there is fear lest once the reparations checkrein over Germany is -relaxed, Germany wi'l attempt other revindic: tions, such the right arm and the re- turn of the Polish Corridor. As yet there has not been time for | the national equipment program to show any effect on business conditions. Unemployment continues to rise with laber restlessnes more evident, especial- ly around Paris. ® The just-published November production index continued the 2-point monthly drop which has Tepeated itself each month since Au- gust, ang Wihéch now has reached 115, compared with 140, y m_llgw the monthly average e $80,000,000 year-end expansion I(!f bank note circulation is Cnnmting very slowly. The Bank of France, due to the generally unfavorable comestic situation and to the prospect of sharp- :y reducrdtgcuvity in 1932, is expected 0 pursue the recent policy re of its foreign bnlsnce‘s}. S London Optimistic. Londen.—British business refuses to be wholly pessimistic despite a lack of data to show real improvement in the general situation. In the industrial fleld encouragement is derived from the increase in trade inquiries. In the finapcial field there is cheer in the better tone on the stock market and tfe continued hope that the Lausanne Conference will at least determine con- ditions which will prevail for a fixed time, as limited as that may be. Rumors are abroad that the cabinet is in serious disagreement on its tariff scheme, due. to be announced with the April budget. Pressure from all sides for protection is unrelenting. The iron and steel in- dustry, in particular, is demanding im- mediate aid. Treasury officials are anxiously scanning first reports of the income tax yield. Not only is the rate increased this year, and the exemptions lowered, but three-fourths of the year’s tax is payable now. More than 1,500, 000 new taxpayers are added by the lowering exemptions. During the first nine days of the year, tax returns_totaled nearly $73,000,000, which is $32,500,000 more than were |paid in the first nine days last year. German Industry Worse. Berlin.—Chancellor Bruening's repar- ation statement is officially interpreted as Germany's inability to pay in ac- cordance with the Basle report and not as any unwillingness on the part of the Reich. Opinion is strongly opposed ' to any short-term prolongation of the rep- aration moratorium with a six-month adjournment of the Lausanne Confer- ence. The money market is remark- ably easy. Nearly 90 per cent of the Reictsbank’s year-end credits were re- ! paid in the first week in January. The general industrial position has further worsened. Unemployment at the year end stood at 5,600,000 and is increasing rapidly. The coal and steel industries contribute the largest number. RETAIL FOOD PRICES DROP THROUGHOUT COUNTRY Retail food prices throughout the country, according to figures compiled vesterday by tie Labor Department’s Bureau of Statistics, continue to slide down the scale. The bureau noted a reduction of 2 per cent on December 15, as compared with figures compiled as of November 15. This reduction places the average de- crease in retail prices for the year at 16 2-3 per cent, according to the bureau. Washington, Springfield, Il Salt Lake City, St. Louis, Philadelphia, Peoria, Mobile and Minneapolis each noted a 2 per cent decrease during the 30-day period ending December 15. This reduction places the yearly decrease here at 17 per cent. CHEMICAL REPORTS JUMP IN EARNINGS IN 1931 Special Dispatch to The Star. NEW YORK, January 16.—The Chemical Bank & Trust Co., which has just made public its annual report, states that the bank in the year ended December 31, 1931, earned $5,113,000, equal to $244 a share on 2,100,000 shares of stock as against $2.25 a share earned in 1930, a fine showing during a panic year. ‘The bank now has 14 offices in New York City, one in Brooklyn, one in Chicago and one in London. It is a charter member of the New York Clear- ing House Association. CORPORATION EARNINGS. NEW YORK, January 16 (#).— Per share earnings of corporations reporting mylhe pa:td\'x"(‘k included: ear ended Noven Guit - States TNt w20 Pensylvania Pow. & Lighi Puset Sound Pw. & Light Vigginia, Elec” & Power 1931 1030 513.00 $16.83 nation which is anxious and willing |} to meet pa tractual obl lCaD}'th'fi {menu in full on all con- gations. 1932, by the North American lewspaper Alliance, Inc.)