Evening Star Newspaper, January 31, 1932, Page 63

News of Markets Pages 1 to 4 FINANCIAL AND CLASSIFIED he Sunday Star® Classified Ads Pages S to 12 Part 6—12 Pages WASHING TON, D. C., SUNDAY MORNING, JANUARY 31, 1932. DEGREASE N BANK CLEARNGS SHOWN BYJANUARY TOTAL Manager Bright Reports Fig- ures for Month Were $92,855,736. WARM SPELL DECLARED REASON FOR SHRINKAGE Merchants Hope for Better Busi- ness With Advent of Visitors to Bicentennial. BY EDWARD C. STONE. Total bank clearings ‘in Washington for the first month of 1932 became available yesterday when the Washing- ton Clearing House Association made its monthly report, the figure being lower than in January a year ago January clearings amounted to $92,- 855.736.29 in comparison with $109,764,- 61434 in January, 1931, Manager Charles E. Bright reported, and with $101,680,373.56 in December, which, of course, included Christmas trade. Clearings were ahead of last No- vember when the number of checks cancelled the local clearing house totaled $91,546,846.82. The reason for the slump in clearings in January of this year, compared with January year ago, is laid largely to the warm Weather which has so interrupted trade in Winter goods. Both these months experienced the same mercantile lull after the holiday rush. Merchants, however, feel sure that there will be come colder weather dur- ing the remainder of the Winter and that they will make up a part of the trade they have so far lost. They are also looking for the first of the visitors connection with the Washington 1itennial celebration to begin to send some money here in February. rings in Pebruary last year totaled 75 and in February With only modest im- t in business conditions, both v be surpassed eport will cause Weekly reports | from almost every large city in the country have revealed a falling off iu bank learings. In the week just closed, every big city in the United States re- ported that clearings were lower than in the same week last year. No doubt the monthly reports from other cities will show that Washington clearings are not down nearly as much as else- where, especially in the leading indus- rial cities. Racquet Club Bond Committee. Holders of the first mortagage 7 per cent bonds of the Racquet Club, which defaulted in interest January 1, 1932, met yesterday -afternoon in the to consider what steps should be protect the interest of the ers. There were present 35 in- dividuals, representing $335,00 par value of bonds. The total amount of bonds outstanding is $575,000. fter considerable discussion a com- mittee of five was appointed to make a survey of the situation and report to | 588, the bondholders at a meeting to be held the club rooms February 15 at 4:30 pm committee includes W. C. Sulli- Y. E. Booker, W. Wallace Chis- Allen MacCullen and H. R. Haw- thorne of New York. Merganthaler Linotype sold higher on the Washington Stock Exchange yes- terday, closing the week at 53. A block of 50 shares of Capital Traction came out at 18, the stock selling at lg higher on smaller sales before the close. Potomac Electric Power 515 per cent preferred was again strong, com- manding 104 In the unlisted department Mayflower Hotel 6s showed a little more strength, e bid price being moved up to 20 with asked. The bid on Metropolitan va National Press Building first 5125 were quoted a bit lower, 39 being bid in- stead of 40 and 41 asked in place of | 3. The bid on Connecticut Pie Co. was made 130. Yesterday's sales: Mergenthaler Linotype—4 at 53, 4 at 53 Washington Gas 6s “A"—$500 at 100, $1,000 at 100 Capital Traction ‘Go—50 at 18, 5 8t 18'5, 5 at 18l Potomac_Electric 51, per cent pfd —1at 104, 5 at 104, 4 at 104, 3 at 104, 2 at 104 Washington Gas 6s 993 Bankers to Welcome Guests. 1. J. Roberts, chairman of the com- mittee planning the twenty-eighth an- nual banquet of the American Institute of Banking, which takes place at the Willard on Saturday, February 13, has appointed the following the Reception Committee: T. Hunton Leith, assistant cashier, Security Savings & Commercial, chair- man; Francis G. Addison, jr. presi- dent, Security Savings & Commercial; James H. Baden, vice president, Com- mercial National; Charles D. Boyer, cashier, Federal-American National; Harold Burnside, assistant cashier, Riggs National; R. Jesse Chaney, as- sistant cashier, Commercial National; Victor B. Deyber, president, Second National; Charles H. Doing, jr. vice president, Washington Loan & Trust; James C. Dulin, jr., assistant treasurer, ‘American Security & Trust; Joshua jr., president, District National; V. Fleming. president, Riggs National; E. E. Herrell, president, In- ternational Finance Corporation; La- nier P. McLachlen, president, McLach- len Banking Corporation; Harry G. Meem, president, Washington Loan & Trust; Howard Moran, vice president, American Security & Trust; John Poole, president, Federal-American Na- tional; C. H. Pope, vice president, Mun- sey Trust; F. P. H. Siddons, secretary, American Security & Trust; James A. Soper, vice president and cashier, Lin- coln National; W. W. Spaid, partner, W. B. Hibbs Co.; Frank J. Stryker, president, Columbia National; Corcoran Thom, president, American Security & Trust; George O. Vass, vice president, Riggs National; Wilmer J. Waller, vice president, Federal-American National; George W. White, president, National Metropolitan; E. P. Wilson, secretary, National Savings & Trust; Claude H. Woodward, president, Mount Vernon Savings, and A. M. Nevius, vice presi- dent, Riggs National. Eléven members of the committee are past presidents of Washington Chapter and all are greatly interested in insti- tute affairs. Reservations indicate that the success of the dinner is already as- sured. “A"—$100 at January Stock Transactions. NEW YORK. January 30 (#).—Jan- uary transactions in stock on the New York Stock Exchange totaled approxi- mately 35,000,000 shares, the smallest since August, 1931, and the lowest January volume since 1923. 1930 were | | usage in Washington, according to John BY DR. MAX WINKLER. Special Dispatch to The Star. NEW YORK, January 30.—Without | making allowance for the change in the purchasing power of the dollar, | the cost of participation in the World War to the United States was $37,- 644,000,000, or substantially in excess | of $300 for every man, woman and clid living in the country. This does not take into account the losses represented by soldiers who died on the battlefield; nor does it include | the wounded and crippled who, instead | of being assets to the Nation and so- clety in general, became a distinct liability. The United States was probably the only country entering the war, not from a desire for more territory or riches, but prompted solely by the de- | sire to make the world safe for de-i mocracy, to end wars, and to estab- lish the principle of the self-deter- mination of nations. America’s Sacrifice. | If none of these ideas or ideals was | achieved, it is no fault of the United States. She has contributed very liber- | ally to what was represented to be | a most worthy and noble cause. She gave freely of her men and means. She bore its burdens and did | her utmost to lighten appreciably those | of her allies. The loans advanced to | them and the credits established on SOUND ECONOMY IS URGED IN HANDLING OF WAR DEBTS Default on Commercial Loans Would Be Blow at Recuperative Powers of Germany. | She has always viewed important in- their behalf, were funded on the basis of the capacity.to pay of each respec- tive debtor at the time. To be sure, one can appreciate today the difficulty residing in any attempt to compute in advance the capacity of a country to discharge contractual ob- ligations. In any event, the terms of the funding agreements demonstrated conclusively a desire on the part of the United States to accord the fairest and most equitable treatment to debtor countrles. 1t is obvious that the epithet of shy- Jock dces not in any way whatever ap- ply to the United States. Of course, America is not very popular with her debtors, a fate chared by all creditors who are in the process of collecting. “Lend, and the world will borrow freely; Collect, and you stand alone.” Great Britain’s attitude toward po- litical debts is entirely commendable. ternational problems in a much more altrustic manner than was and is be- ing done by her friends across the Channel. Britain's Attitude. Did not Great Britain forgive the | debts of her continental allies during the Napoleonic conflicts, thereby hastening the general rehabilitation of the world, and Europe in particular? Has she not proclaimed her intention ~ (Continued on Third Page.) PHONE NET MOUNTS 13 N YEAR C. & P. Annual Report Shows | Marked Progress During ‘ Past 12 Months. l Net income of the Chesapeake & Po- | tomac Telephone Co. for the year 1931 | amounted to $1,965,632, compared with | $1,298,236 in 1930, or a very substantial gain during the year of $667,396, ac- cording to the annual financial state- men: filed Wwith the Public Utilities Commission yesterday. | Telephone operating revenues for the | 12 months ended December 31 amount- | led to $9,223629, as compared with 1$8,654,334 in 1930. Total operating ex- | penses were $6,179.983, as compared | | With $6,286,020 in 1930. Taxes for the year were $686,747, as compared with | $570,370 for 1930. | After deducting taxes, uncollectible, interests, rents, etc., the balance before dividends for the year amounted to the above-mentioned $1,965,63Z. The com- | | pany’s gross_construction program for | { the 12 months amounted to $3,340,397. | | During this period the total plant has | | increased from $30,789,242 to $32,778,- | December Net Up $25,181. Telephone operating revenues for December, 1931, amounted to $804,586. Telephone operating _expenses were $576,218. After deducting taxes, uncol- | Tectible, interest, rents, etc., the balance | before dividends amounted to $140,233, | compared with $115,052 in December, 1930. The total plant at the end of | the year amounted to $32,778,588. | Washington was served by 179,266 | telephones at the close of business De- | | cember 31. This was a net gain of 10,786 for the year. In December tele- phone users made 20,524,000 calls. In addition to this growth in telephones, which added to the value of the service, local service was extended to suburban points with substantial savings to| Washington subscribers. The continued increase in telephone A. Remon, general manager of the com- pany, required the addition of 147 tele- phone employes during December. It has also enabled the company to pro- ceed with its construction program, which, in addition to the regular tele- phone employes, gives employment to 160 men. Some Yearly Comparisons. 12 months, 12 months, 1931. 1930. Telephone revenues Telephone operating ex- penses ... : operating 9,228,629 6,179,983 8,654,334 6,286,029 Net telephone operating revenues .... £3.043.646 $686.747 65158 $2.368.305 Taxes . . $570.370 Uncollectible 43.768 Total deductions from operating revenues Total operating incomes Non-operating revenues $614.138 $751,905 2291741 1,754.167 Total gros: Interest .. Total deductions from ®ross income ........ $361 Balance before dividends $1.965.632 SEASONAL GAINS NOTED IN TRADE Boston Forecast Sees Slightly Higher Business Activity Out- look for Month of February. s income 3 ) Gt 464.085 $516.090 31,208,236 Special Dispatch to The Star. BOSTON, January 30.—The United Business Thermometer registers trade and industry at 36.9 per cent below normal for January, compared with 36.7 per cent for December and 36.5 per cent for November. In its report | of January 30, the United Business | Service states that this sidewise move- ment in the adjusted indexes indicates that so far this year activity has in- creased seasonally just about as much as usual. The service states that the trend should continue _sidewise, or slightly upward, during February. BUILDING WAGE CUTS MAY TURN INDUSTRY Building wage cuts may bring & turn in industry, says the Standard Statis- tics Co., in a current survey, which fol- lows in part: “The board of governors of the Building Trades Employers’ Association of the New York area recommends a wage cut of 25 per cent for all work- ers in the trades, effective as soon as present contracts expire on April 30. This proposal will be voted upon by the association on February 3, and will wbflbly be adopted. It already has n given extended consideration and is in line with shrinkages in other " 3 Reports Gains L. B. WILSON, President of the Chesapeake & Potomac Telephone Co., which has just reported important improvement in earnings dur- ing the year 1931. Between increased earnings and economies the company had an extra good year. FARMERS, INCOME SHRINKS STEADILY Midwest Still Displays Nerv- ousness Over Future Credit Situation. Special Dispatch to The Star. KANSAS CITY, Mo, January 30.— The first month of the new year has shown little financial betterment | through the farm country. Closing of a number of banks, some considered among the strongest in the Southwest, has had the effect of increasing the nervousness of depositors and slight causes start runs that are beyond con- trol. Such happenings are, of course, infrequent and confined to localities. What is of more importance is the gradual seepage of deposits because little new money is available. It may be that the banks have lessened their own volume of deposits by striving for liquidity, but the natural impulse is to attain preparedness, regardless of profits. Typical Instance Cited. It is greatly to the credit of this city that its banks have gone through the last two years without a suspension or serious embarrassment of any of its financial institutions, due to the care- ful and friendly co-operation among the banks and the centering here of the business of six important States. The fact is that the city banks are feeling the strain less than those in rural cen- ters, which depend so greatly on the return of field and ranch, both giving little income that can be utilized in credit. ‘Take a typical instance of just what happens to the average farmer. In the Fall of 1930 John Latham, out in the wheat belt. borrowed $1,100. He raised 3,000 bushels of wheat, the principal output of his farm. Last Summer, hoping for higher prices, he renewed his note and held his wheat. This week he sold it at 38 cents a bushel, receiv- ing $1,140, or $10 less than his note and interest. What did he live on and how can he hope to meet any other debts? His land is all under cultiva- tion, but he can hope to realize little more yield. In former years he would have had $2,000 pxtra money—now he has none. He may reborrow, but that does not help. This is what is happening—together with withdrawals to buy Government Rg:gsin:e;);m}:g in D(:stal savings or me or feaxd) n safety deposit The feeling of the Western bankers is that the congressional action adopt- ing reconstruction plans and aid to land banks is six months too slow—that if there had been positive action early last Autumn, it would have been a pre- ventive of much uncertainty and stim- ulated a greater confidence in the finan- cial situation of the interior. ‘Weather Aids Stockman, A notable open Winter has aided the stockman. Plows are already running in some fields, preparing for the Spring plantings. Any idea that the producer is going to let fields lie fallow is er- roneous. The work of the farm will go on, though with some readjustment to STOGKS SHOW AN ATENDOFNONTH, BUTTONEISHEAW Liquidated Condition of Mar- ket Shown by Action of Past Week. TRADERS ARE UNCERTAIN ON FUTURE PRICE TREND Opinion Divided on Whether Equities Have Now Touched Their Ultimate Lows. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, January 30.—January is ending with domestic and foreign bonds well above their average at the close of last year and with an absence of liquidation from banks and private investors. Stocks have not reacted to the low level reached early in the month, though this week’s decline has reopened the question whether they have touched their ultimate bottom. The zone of serious political disturb- ance has shifted from continental Europe to the Far East, with complica- tions growing out of the attack on Shanghai by Japan that may intro- duce a new element into an already unsettled international situation. Tak- ing this into consideration, and with the significant dividend announcements recently, it attests to a liquidated con- dition of the stock market. It has performed well in registering such a relatively small decline lately. Credit Relief Provided. The month ending today has been devoted to the development of agencies that can take the strain from corpora- tions and institutions whose credit has been damaged during a two and one- half vear period of depression: also in bringing to a focus wage adjustments that have seemed to be necessary if certain industries were to remain sol- vent and others to reconcile differences between producers and consumers. During January there has arisen a new economic_philosophy which looks upon continued deflation as unreasonable and is promoting & policy of moderate inflation to counteract the forces of depression. The new thought has been expressed this week by the Undersecre- tary of the Treasury, Ogden L. Mills as_follows: ; “The calamitous process of deposit and credit contraction must be arrest- ed. The flow of funds from all parts of the country to the financial center should be reversed. The full use of available credit should be encouraged. Each bank should become a strong polnt, radiating strength and confi- dence. Resources are truly important only to the extent that they are used.” The machinery of tre Reconstruction Finance Corporation is being set up. It is about ready to give aid to its most urgent applicants with funds that have been created out of this week'’s Treasury sales. Supplementing it are the National Credit Corporation, which is_operating more smoothly and effec- tively among the distressed banks: the Railroad Finance Corporation and the Federal Land Bank. These combined auxiliaries to normal banking facilities ought to absorb the emergency situa- tions throughout the country and per- mit national and State banks to return to the business of rendering accommo- dations to good clients. There is little excuse for them now to sell out the collateral of customers or to maintain the fantastic degree of liquidity which they established at the end of Decem- ber and have quite generally main tained during January. As Secretary Mills_states, “resources are truly im- portant only to the extent that they are used.” Unwillingness to employ them frequently leads to a belief that the status of an individual institution is not as secure as it is pictured. Check Liquidation First. In their early stages the effect of the new reconstruction agencies will be that of checking liquidation rather than promoting expansion. There- fore, the public may for some time feel a sense of disappointment in their efficiency. It is necessary, however, to build a foundation before the super- structure can be erected and until confidence can be permanently devel- oped by a period of suspended and completed liquidation, a definite upturn is impossible. It is the belief that such confidence will be steadily pro- moted. Unless there is to be an entire re- casting of our economic structure, and this is not now apparent, the mortgage obligations of well managed railroads and public utilities and their common and preferred stocks are today at a level that compels serious considera- tion from the investing public. Aid Given Germany. Progress has been made during the week in easing the position of Ger- many's creditors by a one-year exten- sion of the “standstill” agreement on short-term loans. Had it not been for the Shanghai episode there would have been a more comfortable feeling over the entire foreign situation, as there were evidences of some concessons on the part of France to the more mod- erate reparation terms of the other European powers. It is obvious that Japan is now taking advantage of the economic crisis all over the world to impose her authority in China. This fact makes her action the more unpop- ular and reprehensive. The delay in carrying out the policy of inflation’ which the Federal Reserve Board began two weeks ago, when it Jowered rates on bankers' bills, is due to the French withdrawals of gold and was ‘adopted in order to modify the opinion abroad that this country is launching out on a definite inflationary program. The railroad wage negotiations pro- ceeded slowly during the week as the score or more of labor organizations considered the petition of the carriers and, independent of each other, voted on it. Fall Street has been irritated over thd delay, but when the amount involved is considered, as well as its effect on the income of a body of work- ers whose actual earnings in 1930 and in 1931 were not high, the time given to discussion of the 10 per cent cut can- not be regarded as unreasonable. With a possible $200,000,000 saving in wages and a $100,000,000 addition to freight rates, plus assurance that any carrier with a legitimate claim can receive as- sistance from the Reconstruction Cor- poration, it is apparent that a brighter day is dawning for the railroad indus- try. This should infuse new blood into those industrial arteries that are al- meet the new conditions. If credit can be expanded during the next 60 days, the Middle West will be in a position to improve its financial structure. It starts on the last month of Winter hopeful of betterment. ways nourished when railroad credit is good. (Copyright, 1932.) Britain's coastline, 5,000 miles long, is now guarded by 800 men in the coast IT SEEMS THERE WERE TWO SCOTCHMEN (Copyright. 1932.) ARGUMENTS FOR GLASS BILL | ARE SEEN IN BANK FAILURES Spectal Dispatch to The Star. NEW YORK, January 30.—There is a strong argument in the statistics of bank failures presented in the Federal Reserve bulletin for January for that section of the Glass banking bill which would encourage present non-member institutions to ally themselves with the Federal Reserve System. Of the 2,290 total of bank suspensions reported for 1931, no less than 1,880, or about 80 per cent, were of State and non-member institutions. They repre- sented 70 per cent of the total of $1,759,484,000 deposits involved. Many of them were inccrporated during the period between 1900 and 1920, when there was an increase in banks doing business from 10,000 to 30,000, and, as Ogden L. Mills, Undersecretary of the Treasury, stated in his address before the American Acceptance Council Mon- day night, “events have demonstrated that the increase in number was a source of weakness rather than of strength.” Weakness in Banking Structure. During 1931 there was a total of 1,318 bank failures within the two geo- graphical areas classified as East North- | Central and West North-Central. The first comprises the States of Ohio, In-| diana, Illinois, Michigan and Wisconsin, | which had 609 failures, and the second Minnesota, Iowa, Missouri, South Da- kota, North Dakota, Nebraska and Kansas, with 709. In 1930 these two divisions had a total of 692 failures, so | that for the two years they have wit- nessed the closing of over 2,000 of their banks, or 60 per cent of the entire number of suspensions in the United States. This obviously indicates a weakness in the banking structure and in bank- ing practice and one that it will be the effort of Congress to improve when it gets around to it. Of course, the tre- mendous decliné in farm products and in the value of farm lands has been an important factor in causing the downfall of banks in agricultural States. The fact remains that this section of the country was as much overbanked as was that in the North- west soon after the war. The latter territory experienced deflation eight or ten years ago. Consequently, it has had comparatively few banking failures the past two years, with a total in I931 of | only 62 for the States of Montana, | Idaho, Wyoming, Colorado, New Mex- | ico, Arizona, Utah and Nevada. The | | increase in this area last year was | mainly in Celorado and Idaho, reflect- ing the unfavorable mining conditions. In 1930 there were 215 banking fail- | ures in the South Atlantic States as | against 257 last year. In the East | South Central States, which include | Kentucky, Tennessee, Alabama and | Mississippi, there were 141 in 1930 and 152 in 1931. In the West South Cen- | tral States, which embrace Arkansas, Louisiana, Oklahoma and Texas, there | | were less failures last year than in the | | year previous owing to the drop in Ar- | kansas from 133 to 58. i Failures Analyzed. | On both sides of the continent there was an increase in failures last year over those in 1930. For instance, the | New England States had only 12 sus- pensions the year after the panic began, while in 1931 the number was |33 In the Pacific Coast States of | Washington, Oregon and California failures in 1930 numbered 11. In 1931 they were 54. The Middle Atlantic States were relatively immune from banking troubles in 1930, when the total suspensions reached 30, whereas a year later they had mounted up to 230, of which 137 were in Pennsylvania. Out of the total of 3,616 banks that suspended in 1930 and in 1931, with total deposits of $2,662,000,000, the number reopened is 409, or about 12 per cent, with deposits of about $210,- 000,000. The relatively small percentage of deposits released imposes on the banking authorities one of their most serious problems and one that the ad- ministrative banking measure and that proposed by Senator Glass attempts to solve. The main effort of the National | Credit Corporation has been to prevent further suspensions. The improvement in this direction during January as compared with December indicates a considerable measure of success. The important work to be done from now .on is in the quick liquidation of in- solvent banks and the release of funds still unavailable to depositors and con- stituting an amount nearly double the | accepted figure of money in hoarding throughout the country. (Copyright, 1932.) MERCHANT STEPS ASIDE TO AID YOUNG MEN Special Dispatch to The Star. CHICAGO, January 30.—“In order to give a young man a chance,” Walter Scott today announced his resignation as vice president in charge of mer- chandising and member of the Execu- tive Committee of Butler Brothers, with a record of the longest service of any individual ever associated with the company. When 16 years old, Mr. Scott went to work as an office boy in the Boston house soon after the firm was started. He has been on the pay rolls of the company for 54 years and for 45 years he has been a director. Mr. Scott is an outstanding figure in merchandising circles. He has been in charge of the buying offices.in New York for many years. He said that he was Tetiring because he felt he had reached the time in life when room should be made for a younger man to climb up the ladder. Westinghouse Loss Indicated. NEW YORK, January 30 (#.—In a letter to stockholders, Andrew W. Rob- ertson, chairman of the board, and F. A. Merrick, president of the Westing- house Electric & Manufacturing Co, stated that the company would prob- ably show a loss from all operations for 1931 of approximately $3,250,000. Incoming business fell off very sharply during November and Decem- ber, the officials said. At the present time current assets are 12 times great- er than the current liabilities, or in other words, the company has $12 to pay for every dollar it owes. The letter added that at the pres- ent time incoming business is not large, but the management is reducing expenses continuously and “has no hesitancy in saying that if we do the :l‘l??n‘?s‘;‘im of m:film 1932 as we » & sul profit will be shown,” 155, 53 . PENNSY’S NET IN 1931 ABOVE $1 PER SHARE Official estimates indicate that Penn- sylvania Railroad net income for 1931 will be slightly in excess of $1 a share, or a little over 2 per cent on outstand- ing stock. This figure would compare with $5.28 or 10.56 per cent earned in 1930. Competition of other forms of transportation, says the Wall Street Journal, continues to be a thorn in the flesh, but the real problem in 1931 was a lack of traffic due to the low levels to which industry generally had fallen and a general slowing down in prac- tically all lines of actiity. Notwithstanding the continued dras- tic decline in gross revenues, the man- agement was able to hold operating ratio at 78.75 per cent, which com- pares with 74.92 per cent in 1930 and with 72.23 per cent in 1929, the lowest point since the war and not far from the record for modern times which was 70.9 per cent shown in 1916. STOCKHOLDERS MEET. RICHMOND, January 30 (Special).— Stockholders’ annual meeting of Black & Decker Manufacturing Co., Henry M. Thomas and Chester F. Hockley were elected directors to fill vacancies on the board. Frank J. Nagel was elected treasurer. Other directors and officers were re-elected. DIVIDEND CHANGES. NEW YORK, January 30 (#).—There were 67 unfavorable dividend changes in the past week, compared with 58 in the preceding week, the Standard Sta- tistics Co. T today. Dividends reduced numbered 22 and 45 were omitted. Favorable revisions totaled 12, against 16 in the previous week. They consisted of 5 extras, 4 resumed, 2 1 incresse, o INVESTMENT BOND MARKET S DRAGGY Sino - Japanese Clash and Rail Wage Parley Affect Price Trend. By the Associated Press. NEW YORK, January 30.—The in- vestment market ended the week in a somewhat gloomy and apprehensive frame of mind, after watching bond prices pursue a downward course. Dis- turbed by the Sino-Japanese clash at Shanghai, Wall Street was fearful of some flare-up which might project one or more of the great powers into the struggle. The railroad wage conference at Chicago spent another week without reaching a definite agreement. Bond price averages dropped more than 2 points below their best levels of the year to date. Japanese govern- ment bonds broke 4 to 7 points to new low levels for the bear market, with yen exchange down to a new low. There was nervous selling in the entire list of forelgn and domestic descrip- ions. Bright Spots. However, the picture was not without its bright spots. ‘The Shanghai “war scare,’ just as the Manchurian crisis had done some months ago, caused an abrupt climb in some commodity prices. Bargain hunters were in the market for bonds as the week ended. One in- stance was that of Japanese government 5155, which sold down to a new low. For a time on Friday there was no bid for them and then a bond sold at 68. Immediately a number of floor traders started bidding briskly for the bonds at 58 and a little higher. Similarly in the Test of the list, even though prices showed substantial declines on _the week, many issues closed much above their' lowest levels. As for the domestic railroad situation, the Reconstruction Finance Corporation |15 about to get under way, and under this and other administration plans the railroads will be able to obtain the re- sources they need to meet bond maturi- ties and interest and get their systems in shape for the recovery. It was for this reason, no doubt, that Missouri- Pacific 5lgs, after dropping rapidly with not a vestige of support, were heavily bid for around their low. The same applied to Nickel Plate 6s, Erie 5s, St. Paul 5s and many another junior carrier bond. Another hopeful factor in the rail- road situation is the constructive work the Interstate Commerce Commission can do in rounding out consolidation plans. For instance, this week the Southern Pacific was given conditional permission to acquire the St. Louis- Southwestern. The immediate result was that cotton belt bonds ran up 14 to 19 points. New Capital Market. By far the most promising develop- ment of the week was the revival of the new capital market. While the week’s total of just over $41,000,000 compared with $201,064,000 put out in the same week of 1931, it was a great improve- ment over the weeks of December and January when no bonds, or enly a few hundred thousands of dollars’ worth, were all that could be sold at any price. ‘The impetus for this sudden activity, of course, was the success of the New York City offering of $100,000,000 of 6s the previous week. The bonds were bid at a premium for a few days after offer- ing and New York State’s issue of 415s was not even offered to the public, so anxjous were the bankers to get it. Municipalities immediately arranged to reoffer issues on which bids were re- fused in December and early January and undoubtedly the next few weeks will see a more normal stream of these descriptions. Meanwhile the utilities have found litle difficulty in marketing high-grade bonds around a 5.25 to 5.50 per cent yield basis for 20-year bonds. New York Edison sold $25,000,000 of such an issue and Brooklyn Edison and United Electric Light & Power both have similar issues pending. ‘The outlook for the investment mar= FOREIGN BUSINESS 1S HANDICAPPED BY Unemployment in Germany Has Risen Close to Six Million Figure. FRENCH IMPORT QUOTAS AFFECTING U. S. TRADE British Situation Shows Improve.- ment—Ttalian Business Reflects Usual Winter Decrease. Special Dispatch to The Star. NEW YORK, January 30.—Cables and radio dispatches to the Business Week give the following survey of busi- ness a_bmad for the week ending today. Tokio. — Certain banking interests here are concerned over the Shanghal incident. Japan’s investments in this largest of Chinese cities are enormous, There are 3,000.000 spindles in Jap- anese-owned textile mills alone. Tokio despite the uncertainty, is showing a degree of business stability The mar- ket is comparatively steady. Stocks continue to gain £lightly. Elections, now scheduled for Pebruary 20, are ex- pected to return a majority for th Seiyukai party, recently called Business and the banking community are satisfied with the new short-term credit “standstill” agree- ment. although they realize its possible beneficial cffects are greatly paralyzed by reparations unsettlement. - Features of the week here are the remarkably easy money market and the firm un- dertone on the stock market, in spite of the unabated decline in industrial activities. The number of unemployed was close to 6,000,000 at mid-January, which is up 300.000 since the year end. Coal alone showed some slight seasonal recovery, while the machinery industry in December was working at 32 per cent of capacity. compared with 34 per ent in November and 38 per cent October. The decline in" this. and other, industries is bound to contin during the next few months as a re- sult of the higher tariff walls and of depreciated currencies. ‘Wholesale Price Deflation. Price deflation has brought the wholesale index for the first time to ‘Jfle 1913 level. The price commissioner { claims the cost of living is down 7 per | cent since December 9 and that he ex- pects it to be down 10 per cent by mid- February. Paris—American business men in Paris are up in arms over the continued fils(‘rumnawr)' extension of the French import quota system. Following last week’s promulgation of radio con- tingents, whereby the United States, formerly first, is now placed in a poor third, while Holland, formerly third, is placed in first (in order to favor & Franco-Dutch combine), new con- tingents were promulgated this week to affect meat products, condensed milk, and especially electrical equipment and appliances. The American Chamber of Commerce in France has taken the initiative in forming a committee not to protest the French right to adopt quotas, but to contest the above dis- criminatory applications. There is every indication " that there is a growing segment of French public opinion, | where well informed, which does not support these recent trade practices. Although registered unemployment has risen 30 per cent in the first half of January and crossed the 200,000 mark, and business indicators continue steadily downward with carloadings off 24 per cent, compared with the same time last vear, the Paris Bourse is holding steady at 15 per cent above year-end | lows, but 50 per cent below the 1929 | average. Similarly, though gold hoard- ing continues, confidence in banking conditions has largely recovered London.—The general tone of busi- ness in- Britain during the past week was good. London was particularly stirred by developments in the govern- ment caused by the cabinet controversy on tariffs. Reason for the departure from constitutional practice of cabinet collectivity is the desire to impress foreign opinion with the solidarity of the government on other aspects of the national policy. If it has accom- plished this end abroad, it certainly has not at home. Repayment of Credits. The Bank of England repayment of Franco-American credits without a loss of gold has made a favorable impres sion and is construed as a sign of un- expected strength of sterling and of the ade balance. The case of repayment prompts the expectation that Britain soon will be a lender again if repara- tions and war debts are eased. The ex- change loss was borne by no bank, but by the government. The failure to in- crease the fiduciary issue to meet the emergency was especially welcomed. Milan.—Generally speaking, condi- tions in Italy are little changed other than for the usual Winter decrease of activity, which has brought unemploy- ment to the million mark, an increase of 50 per cent over last year. Only one-fourth of these are on the dole. Cotton mills are beginning to feel sterling depreciation. Already suspen- sion of one-quarter of Italy's 1,000,000 spindles and 40 per cent of the 150,000 looms has been proposed. The government has decreed com- pulsory concentration of the metallurgi- cal companies into two cartels, one for rolled and the second for bar products. This marks another step in the devel- opment of Italy's corporative system, though the new cartels are initially of only six and nine month duration, re- ctively, and, unlike the existing sul- phur and marble trusts, do not yet op- erate under government supervisors. Lira exchange continues to be weak, but the position of the Bank of Italy is easy. Exchange weakness is partly at- tributed to restrictions adopted by the export markets. The minister of finance has authorized that the subject of im- ports from those countries hampering trade payments be studied with a view to taking suitable reprisals. CHICAGO DAIRY MJ{I—IKET. CHICAGO, January 30 (#)—Butter —Receipts, 10,868 tubs; steady; cream- ery specials (93 score), 22a22'3; extras (92 score), 2115; extra firsts (90-91 score), 20%4a20':; firsts (88-89 score), 19',a20; secords (86-87 score), 18la 19; standards (90 score, centralized car lots), 21%. Eggs—Recepits, 7,582 cases; steady; prices unchanged. to ket is somewhat uncertain, ewing to the political haze over the foreign hori- zon, but it is encouraging to find the market reacting in a comparatively steady manner to news developments that a few months ago would have been demoralizing to securities. (Coprright, 1932.) y ~