Evening Star Newspaper, February 5, 1932, Page 15

FINANCIAL CURB SHARES DROP ON LIGHT DEALINGS Public Utilities Lose Steadi- ness as Offerings Are Increased. The Fe Cur ard Bpeci patc NEW YORK stocks on the drifted dowr dealir It lack of rby bids rather Teri that quotations failed by bringing out Prices of nge today ceedingly thin i the r midday rst about a & Power A point. Stand- wed a fractiogal | » was true of Ford fol | ollowing in Investor: asy 1ition of the when it was five air- sufficient The Chinese last year, but makes. Also om a drop spot in s-Hc Chicago. of a the vwell ad- ngthened d Swift eteria early actional sty is one of that has nfavor- A Chicago ea Co. Was acquisition ares resisted able. dis; negotia of with po an a- anged tive rail Benefi- to a new but other s were stea BONDS ON THE CURB MARKET. 1222220 22 2 2 24 0 62% 390 39%2 40 45 45 26 301 1010 45 $ 3412 40 45 45 28 303, | 3 41 3 2078 29% Up to a little over 100 years ago, dis- ease was a deep mystery to the world. Elec- | | Stocks ~Prey. Hich 143 13 92 1037 224 16% sold In 100-share lots except those d 1931~ 8tock and Sales— Low Dividend Rate. Acme Wire Atnsworth Mfg. Ala Gt Southern (4). 1 Ala Power pt (6).... 108 Aluminum Co of Am 600s Alum Goods (1.20) .. AmCitPw & Lt B Am Com Pow A..... Am Com Pow B..... Am Cyanamid B Am For Pow war. Am Founders. ... Am Gas & Elec (11). | e Am Invest Inc (B).. 3 1 2 7 4 1 17 2974 128 Bl 3 | 4f Am Laundry Mch(2) 15¢ | Am Mfg Co pf (5) 4 | Am Maracaibo Am Superp 1st (6).. ([ Am Util & Gn B vte. Appalachian Gas. Arkans Nat Gas A . Asso Elec Indus Ltd | 25 Ass0 Tel Ut (b8%).. { As=0G&EIl (A) b5 % 3 Atl Secur Corp... Atlas (7ti] Corp. Atlas Util pf (3). | Atlas Utilities war.. | Auto Voting Mach. Beneficial I L (1%) Blue Ridge Corp Borne-Scrymser . Brasil Trac Lt&P(1) Brit Celanese rcts Carib Syndicate. Carman & Co A (2).. Cent Pub Svo A b5 %. Central States Klec. . Cities Service (£30¢) Cittes VL (6)... Claude Neon Lts Inc. Clev El I1lum (1.60). Colon Ofl. Colum G Col O11& Gas vte. . ommwlith Edison (322 Cmwlth & Sou war.. Consol Afreraft..... ) o Merch.. « Balto (3.60) C 3as Utility A, Cord Corp. Cosden Oil.......... Creole Petroleum. ... Crown Cork Intl (A) Cus! Mex Mining. Dayton Alr & Eng Deere & Co. . De Forest Radio Detroit Alrcraft Doehler Die Casting. a Dubllier Cond & Rad Duke Pow (5).... Duquesne Gas. . East Sta Pow (B)... last Util Asso (4). ast Util Assocev.. Edison El Bos 13.60. Elec Bond&Sh (b6% ) Elec B& Shcupfb.. Elec B & Sh pt (§) Clec P & Ltop war. . lec Sharhldg pf (a) Fedders M5 Co A Ford Motor. Can., Ford MLtd (p36 3 Foremost Fabrice Gen Alloys. . Gen Aviation GELtd Glen Alden Coal (4). Globe U'wirs (p 40¢) |2 Golden Center. Goldman Sachs. ... Graymur Corp (1). . GUA& D Teanviéi 7 Gt At&Pac Tea pf(7)1208 11 Gulf Oil of Penna... 5§ 2i Horn & Hard (233) .. 2 Hudson Bay M&S.. 11l Pow & Lt pf (6).. Imp Oil of Can (50¢) Indian Ter I1lu Ol A Indus Fin Insull Inv (b6%). .. Insur Coof N A (2). Int Clgar Mach (21) & Int Hydro cv pt 3% .. 258 Int Petroleum (1) 11 Internatl Utility (A) 4 Int Utilities B 0 Interstate Pw pf(7). 108 Interstats Equities. Iron Cap Copper. ... Irving Air Chute 50c, italian Superpow A. Lack Securities (4).. Lehigh Coal & Nv(1) Leonard Ol1. 5 lerner Stores....... dray Light (R0¢) Ar Gas n 85c. Long Is cu pt B(6)..100s & Magdalena Synd.... 5 nee Copt. Add 00. Open. Hish. Low. Closc THE EVENING STAR, WASHINGTON, D0 BRIDAY NEW YORK CURB EXCHANGE Received by Private Wire Direct to The Star Office. 1932 Low 1% 1 W 22 4 16 4% 60 Prev | Hign 5 47 5% 50 12% 30 25% ignated by letter * 38 5o 51 9 9 0% 17 ’7 b 3 31p an 5% 26% ki 49 3 5% 254 79 484 105 18 3% Meniph Mo-K 3 3 5% 3 Nat Inv Nat Pow & Lt pf (6) Nat Pub Sv pf (7) Sevpf ww 315, T Sec A 160c. Nat Sh Nat Tr N New Newmont Mining. . NYP&Ltpt(7)... N Y Shipbuilding Cp N Y Telpf (6%).... Niag-Hud Pow (40¢) Niag-Hud Pow A w fud Pow B w hare(Md) 20c. Nitrate Nor W ev pf (3) Northern Pipe Line n Nor St Pow A (8). Novadel Agene (4).. Ohto Copper Pac G & E 1t pf 1%, Pac Western Oll Pan Am AIrways Pennroad Corp (40c) Phila Co (new) 11.60 I’hilip Morris Inc. Pilot Rad Tube A Pion G M Ltd (12¢).. Bowes (b4 %) ith OIL (pific). ve.N Illn p(8). t11 Hold xw.... iiney o2 h s o Fise s g S nith ( ou Cal vuth C So. Union W tand Ofl of I tand Ol of Ky 1.60. 1 and Silver & Lead t Corp p itz M tarret nl Sun In Swift & Swift Internat’l (14) Iv Gold M Ltd(4c) Technicolor Ine. . Tech H Tri-Ut Tubize Chate! Unit Corp war Unit Foundprs Unit Gas Corp 61y 8% 6% Unit Unit Lt & PwA (1) Us USE Ut 5 Van Camp Pkg. Van Ca Vick Financial (30¢) Stock and Divid Margay Mass Utll Mavis Bottling (A). Mayflower Asso (2) Mercantile Strs (1).. Mid West Ut (b8%). Minne-Honey pt (6). n Mo-Kan Pipe L (B). Mohawk Hud 18t(7).2008 Mohawk Mining (1), Mountain Prod (80¢). Nat American Co. 21, Nat Aviation... } Nat Ba &S Corp (1). t Unfon Radio. New Bradford Oil lanc iblic Gas Corp. . 3 an Bros (3). Rubberoid (4)... Anthony Gold. egls Paper. Salt Creek Prod (1).. Sec Allied Corp (1). egal L elected Industrie; le Indalctfs(it) lct Ind prior(5%). entry Safety Cont Shattuck Den Min Shenandoah Corp pf. ger Mfg (8).. A.0). ith-( South Penn O11 (1) Ed pf A (1% S0 [ oc Pow ww. .. U S Inter Sec 18t pf S Lines pt Unit Verde Util Po & L.t (b10%) Bales - Add 00. Open. . 4 2y * 260 I 13 4% 62% Rate. Low. Close. 4 2yt % 26% 4 13 Assoc N Gas (60¢) Pipe Line 4 3 8 estors....... 3 L1008 . b0s nsit (1), ¥ Zine ( Corp Chile B Mining. Manag & Hdwr.. PEB (1%). 4 pf C(1%) orp g (1).. 46 tor Car COOSERERS ent pf (3)... Co (2) hes (60c) e Pro Krooer oromem—te » 5 quired for nece | | By the Assac | crease of $42.000,000 | in mone | part by decre: s Corp war.. o he e re — sate 1 T e £y (A) (8). ten (1) & Ind pL(1%) p Pkgpf... Walgreen Co war Walker, H (25¢). Wenden Copper Wes W v wi Wl rat nual payment a Payable in cash dividend. stock stock son ) Plus n P low Cafeteria low Cafe pf (4). fPlus 87 1 Md pf Tones. Everybody’s Business Timidity of Money Hoarders Keebs Business Tuirnover Ebb, While In- Would Speed at Low vestment Trade. DR. MAX WINKLER. | | BY ; NEW YORK, February 5 (N.AN.A) —The business turnover in the United States would increase five to ten times |if the huge sums which have been | hidden by timid Americans could be brought out and put to work. President Hoover estimates hoardings at $1,300,000,000, and urges the people to put their dollars to work, either by | conservative investments or by deposit in sound institutions, in order that the hoarded money may Teturn to the chan- nels of economic life The cnly difficulty about the Presi- de exhortations resides in the fact ;| that the average American who is with- wing his dollars from circulation is | somewhat skeptical in regard to what ! constitutes a conservative investment and which institutions are to be con- sidered sound. Those who are informed on these points do not as a rule hoard their money. The embers of liquidation are slowly burning out, according to one of Wall street’s keen commentators. The action of the securities market is regarded as t(ms(luumg the culminating stages of a great deflationary movement | Although it is difficult to state with |any degree of certainty when the | process of readjustment will be over, it is safe to assert that a genuine advance in the price of shares will have to be | preceded, or at least accompanied. by | more impressive action of the bond | market. | 80 long as the market for fixed in- | come-bearing securities continues de- pressed, lasting improvement in the | price of equities is not likely to be | witnessed. | dra ‘There is no definite improvement as yet indicated in the economic trend, according to Alfred P. Sloan, jr., presi- | dent of the General Motors Corpora- ticn. Commenting upon the reduction in the dividend on the common stock of this corporation from a $3 annual | basis to $2, Mr. Sloan calls attention to the importance of maintaining its im- | pregnable financial position in & period | of uncertainty such as prevails at the | To what extent improvement abroad would help the company may perhaps | be gathered from the fact that $20,- | 639.000 was charged last vear against | income to provide for contingent losses | resulting from revaluation of foreign exchange holdings | The brief stimulus to the business of the Sears-Roebuck Co. which followed | the Hoover one-year debt moratorium | last Summer has been succeeded by further decreases in the buying power | lof the corporation’s consumers in 1ts sales volume | sales so far this year do not appear to show any change as compared with | the turnover in the second half of 1931 It is, however, intimated that as the year advances the margin of decrease | is likely to grow less, provided there will be no appreciable change in commodity | prices. Conferences, whether national or in- ternational, invariably achieve one con- crete thing —they fix the date and place | of the next conference. | Word has just_come from Paris to the effect that France is willing to initiate and call a world economic non- | after aggression conference immediate the Disarmament, Conference, now con- vened at Geneva. Regardless of what the various conferences which have been held at the instance of European powers since the armistice have achieved, they have kept Europe out of war, which is, after all, much more costly, although as futile a8 conventions, if not more so. Ford of Germany, owned jointly by the Ford interests and the powerful German dye trust, is expected to pay on account of 1931 a dividend of from 4 to 5 per cent. At prevailing prices of about 16!z, the yield varies between 6 and 7 per cent. Present levels repre- sent a shrinkage of more than 73 per cent as compared with a price of 62, at which shares were introduced in the Berlin stock market in 1929, and a shrinkage of nearly 70 per cent as com- pared with quotations a year ago. The outlook for the current year is not only dependent upon the general Evropean situation but also is somewhat obscured by the fact that a Ford car in Germany is more expensive than the more popular cars manufactured by the Opel Automobile Works, affiliate of General Motors. While it is true that New South Wales bonds were not sold with an Australian | Government guarantee, the common- wealth is nevertheless responsible for the loans which went into default on February 1. By virtue of act No. 4 of 1929, entitled financial agreement vali- dation, the debts of the state govern- | ments as of July 1, 1927, were taken over and assumed by the commonwealth | government on July 1, 1920 entered into between the commonwealth and the state governments in June, 1927, subsequent)y ratified by the state parliaments and by the commonwealth parliament on March 29, 1928. Accordingly there is no difference technically or judicially between obli- gations of the government of Australia |and those of its various constituent | parts. (Copyright. 1932. by the North Newspaper Alliance, Inc.) 0 o FOREIGN EXCHANGE. (Quotations furnished by W. B. Hibbs & C0) Nominal kold Sellin checks value today. 48605 33437 3915¢ 393%c 1394c 3770 519c American London, pound. . Paris, franc Brussels, belga Berlin, mark Rome ' lira Zurich. frane Athens, drachm: Madrid, peseta.... Vienna. schilling. Budepest pengo. Prague, crown (nom.) Warsaw. zloty Copenhagen, Oslo, erown §tockholm,, pel ! anadian discount, 12%%. This law gave effect to an agreement | CORPORATION REPORTS TRENDS AND PROSPECTS OF LEADING ORGANIZATIONS. EW YORK, Feb ng is a summary of corporation news prepared Standa Statisties Co. Inc York, for the Associated Press News Trend. the twenty-second consecutive week brokers’ loans declined, dropping $£8.000.000 to $505,000.000, the smallest total since January 25, 1918, according to the report of the Federal Reserve Bank of New York. During the week ending February 3, loans made by member banks for their own account declined $13.000,000, while loans for out-of-town banks increased $5,000,000 and loans for others were unchanged iary 5.—The fol- important The Companies. Bayuk Cigars 1931 carnings before ve. $3.04 Buffalo, Rochester & Pittsburgh December net operating deficit, $166,- 568 vs. net operating income, $197.330; 12 months net operating income, vs. net operating income, common share inventory loss 1 cent Dry Ginger Ale deficit, quarter ending December 31, $23590 vs. net income, $203.276, equal to 40 cents & common share. Gotham Silk Hosiery.—Stock holders to vote on proposal to merge, Gotham Knitbac Machine Corp. Int te Hosiery Mills 1931 net in- come $65.366. equal to 66 cents a com- mon share, vs. deficit $49.163 Standard Oil of California selling third-grade gasoline in Los Angeles at 11 _cents a gallon Borg-Warner Corporation — Produc- tion of free wheeling units up 100 per cent over year ago; all clutch contracts renewed. Capital Management liquidating value December 31, 1931, $15.67 a common share, vs. $26.90 December 31, 1930. | Durham Hosiery Mills 1931 net in- come $74,504. equal to $2.28 a preferred | share, vs. deficit $12,557. Foot-Burt Co. 1931 deficit $189,079, vs. net income $26,156, equal to 27 cents | & common share. Grant (W. T.) Co. January sales up 9.3 per cent; 12 months up 6 per cent. May Department Stores declared 45- cent common dividend; formerly paid | 621, cents quarterly. McLellan Stores January sales off 0.9 per cent. Puget Sound Power & Light—1931 ?ggr preferred share earnings $27.79 vs. Telautograph Corporation—1931 com- mon share earnings $1.57 vs. $1.54, United States Envelope reduces wages and salaries 10 per cent. Virginia Electric & Power—1931 pre- ferred share earnings $19.89 vs. §19.76. American _ Steel Foundries — 1931 deficit $791,373 vs. net income $2.801 .- 442. equal to $2.37 a commen share. Crown Cork & Seal declared 30 cents | 000.000. BAKING FIRM CUTS COST DURING YEAR Continental Takes Up Bonds and Stocks and Lowers Price of Bread. An index of the extent to which the public has benefited by lower bread prices during the past year is given by the report to stockholders of the Con- tinental Baking Corporation, made to- day by M. Lee Marshall, chairman of the board. Through its operation of the Corby and Havenner plants in Washington the Continental is one of the Capital's largest industries. Reductions in prices by the Conti- nental amounted in 1931 to $4,624,000 Of this reduced cost to consumers, $2,- 846,000 was represented by lower flour costs, leaving net economies passed along to the public of $1,778,000 above the saving in the principal raw mate- rial. This showing, in the face of gen- erally less favorable conditions than ex- 1sted in 1930, Mr. Marshall attributes to the fact that advertising activities were continued with undiminished vigor through the year and that, while sav- | ings in costs were promptly reflected in the price to consumers, there was no attempt to reduce prices at the sacrifice jof quality During the year $1,000,000 in subsid- iary bonds were called, resulting in a saving of $60,000 annual interest. This leaves a total funded debt of subsid- farfes of $2,161,302.32, as compared | with $8,125,779.64 at the end of 1925. During the year 28,345 shares of 8 per cent preferred stock was cancelled, with resulting savings in dividend require- | ments. Provision for depreciation amounted to $1,700,000 in excess of the sum re- ry-addit s to prop- erty. Upkeep, repairs and improvements for the year amounted to approximately $950.000. Cash and Government securi- ties increased approximately $2,000,000 ?land the good will item was reduced by FEDERAL RESERVE CREDIT ITEM GAINS Increase of $17,000.000 Reported for Week Ended February 3. Daily Average $1,830,000,000. ated Press rage volume of Federal Resery outstand: 1g the week en ported by the Federal | was $1,830.000,000 Tt $17,000,000 week, the FEBRUARY 5, 1932. FINANCI FINANCE CORPORATION IS HELD AID TO BUSINESS CONFIDENCE Statistics Company Believes New Govern- ment Agency Will Prevent Further Bank Closings and Benefit Security Markets. Special Dispatch to The Btar. NEW YORK, February Standard Statisties Co., Inc, sued the following statement At their present prices good bonds and good stocks have discounted every major and every minor catastrophe that can possibly be foreseen excepting only one. That one is a general col- lapse of the American credit structure. We do not belfeve that anything that is at all likely to happen in Europe will bring about further serious defla- tion of American securities. We do not believe that anything that is likely to happen to American business can be sufficiently bad to bring about furthe: important declines. And if there wer assurance that a general collapse of credit had been averted we would be willing to underwrite the proposition that sound corporate securities are not only cheap at their current levels but cirt cheap, and barring minor tech- nical recessions could go in only one direction, There is, then, one outstanding ques- tion the answer to which must be sought at this time. This is the ques- tion: Does the Reconstruction Finance Corporation insure against the credit collapse? In other words, will operations avert major banking diffi- has is- culties and wholesale railroad insolv- | encles? We belleve the answer emphatically | is that it will Appropriation Adequate. The effect of this bill might well be virtual guarantee of bank deposits. without _specifically committing _the United States Gove nent such a dangerous policy. The act itself has been very carefully tho: t out ‘The appropriation provided appears to be arge enough to meet any possible re- Guirements The Reconstruction Finance Cor- poration can be considered as a huge a liquid fund available to all the banks be | loaned to by each that their as need arises, monies returned to the corporation individual bank immediatel period of stress is passed and there- fore available to any other bank While it is of course impossible for any one outside of the management to say with positiveness what policies this corporation will p L is pos- ible to say wh do persor out the expen ing him that, if and when $683.000.000 | sity arises those assets wh sponding week | sesses and which heretofore 3 to $1,810,000.000 000,000 for corresponds with an i money in c culation and a decrease of $20.000,000 gold stock. It was offset in ses of $8.000.000 in mem- ve L d $ increase of his increas the week ber bank res 000 in unexpe: member deposi of $10,000,000 1 Justed Holdings of $9.000.000 2t ted bills declined ieral Reserve Bank i of Philadelph land. and incr York and San Francisco. and $17,000,- ! 000 at'all Fede The system fn open mar tes and bills $14.- of United States Trea! sed $12.000,000. New York Cotton Special Dispatch to The 8tar NEW YORK, February cotton prices were u nged to points higher today. Trading was slow and foreign demand small 5.—Ope March started off at 6.60, up 2;: May | 677, unchanged: July 6.93, October 7.15, up 1 up 1 and CHICAGO LIVE STOCK MARKET CHICAGO, February 5 () (United States Department of Agriculture).— Hogs—Receipts, 25,000 head, including 10,000 head direct: active. 10 higher: 170-210 pounds, 4.20a4.30: top. 4.30% 20-250 pounds. 3.90a4.15: 250-310 pounds, 3.75a3.90: 140-160 pounds, 4.0024.20; pigs. 3.25a3.50; g sows, 3.3523.50. Light light. go d choice, 1402160 pounds. 4.00a4.25; light weight, 160-200 pounds, 4.10a4.30; medium welght, 200. 3.90a4.30 heavy weight, 4.00; packing Y 75-500 pounds, 3.30a3.60 and choice. 100-130 pot Cattle—Receipts receipts, 500 head; I market, steady to strd cline; common and steers and stock predominating: best steer: 0; bulk, 500a6.25: most fat cows, 2.75a3.50; demand still nar- Tow for practically all classes. Slaughter cattle and vealers: Steers, good and choice, 600-800 pounds. 6.7589.75: 900~ 1,100 ' pounds, 6.7 1.100a1.300 pounds. 6.75a9.75; 1.300-1,500 pounds, 6.7589.75: common and medium, 600- 1,300 pounds, 3.50a6.75. Heifers, good and choice, 550-850 pounds, 5.00a6.50; common and me- dium, 3.00a5.00; cows, good and choice, 3.0044.00; common and medium, 2.50a 3.00: low cutter and cutter, 1.50a2.50: bulls (yearlings excluded) =good and choice (beef) 3.00a3.75: cutter to me- dium, vealers (milk fed) good and choice, 7.50a9.00; medium, 6.50a7.50; cull and common. 4.00a6.50. Stocker and feeder cattle: Steers, good and choice, 500-1050 pounds. ' 4.25 5.50; common and medium, 325a4.50. Sheep, 12,000 head: nothing done; asking higher and bidding unevenl. lower; good to chocla lambs, bid. 6.7 7.25; extreme top late vesterday, 7.40. Lambs, 90 pounds down, good and choice, 6.50a7.40: medium, 5.50a6.50; all weights, common, 4.50a5.50; ewes 90-150 pounds, med 4.25; all weights, cull and common, 1.75a3.00; feeding lambs. 50-75 pounds, good and choice, 5.00a5.50. Maryland Bank Reopens. BALTIMORE. February 5 (Spe- cial) —The Provident State Bank of Preston, Caroline County, has reopened for business, to mark the reopening of the second Eastern Shore bank within the week, according to George W. Page, State bank examiner On Monday the Queenstown Bank of Maryland. in Queen Annes County, re- sumed business after having been closed since the first of last October. The Provident Bank closed last October 8 Depositors of the two institutions have agreed that their withdrawals will not exceed stated amounts and will be made at minimum _intervals specified in agreements with bank officials. 1d good gs. good 3.25a3.85 calves. an-up t week’s de- medium__ grade INTEREST RATES. By the Assoclated Press Money rates remained unchanged last week as their averages were calculated by the Commerce Department. In the table that follows the average for both classes of funds is given for comp: rable periods, as compiled by the de- quarterly common dividend; formerly paid 60 cents, American Republics Corporation— é_fllgl deficit $4,156,308 vs. deficit $927,- v Time. Call Week ending January 30.... 3.75 250 Previous week o . 375 250 Same week last year....... 200 130 um to choice, 2.50a | total Reserve Bank acute stress t anland have therefore now become withe e has felt time loans liquid ion W of col were non-liquid good by the very reason of the form of this corporation If the “X" bank has Ic corporation $2,000.000 h, normal conditions would be reasonable credit and whose under itled to loans are or th bank and e to suppose will tell renew the 3 further 1 . with t nce thas f t do infortunate as to expe . tion, that s Finance Corporation will be glad to extend to them all possible atd and will accey s loan and o milar loans whic hey possess as collate We do not bel e that an be made to . tely take T hrough this corporation loans from banks wh 1 have the confidence merely to make such more liquid. and the whose o s _are mental than they are 2 1 ‘The proper interpretati by bankers should be effect has a $2,000,000.000 ¢ him which permits the bank to exten: loans, buy securities and operate in a normal way The character of the board gives the necessary assurance as to their ability and courage to take whatever action is required to meet the emergencies which may arise. As a matter of fact, & Portion of the board have a record of having previously ough the me- dium of the War Finance Corporation, done a similar job. They not only ac- complished the purposes for which this corporation is designed, but were able to report to the American public with- in a few years that they had operated at a profit. We are justified in be- lieving that this corporation Wil ob- tain equally satisfactory results The major weaknesses in the credit structure at the present moment which the Reconstruction Finance ,Coroora- tion must eliminate are bank failures and threats or public fears of whole- sale receiverships of our major railroad companies. There can be no doubt as to the ability of the corporation to make a definite statement. if they will. to the effect that the second WoIry can be eliminated. They can, if they sce fit. make a definite promise to advance the necessary funds. if they are not h available through ordinary channels, to | prevent any major ratlroad bankrupt- cies. Aggressive Action Needed. The first undertaking, and the one which is of course most important, is much more difficult. but can also be accomplished if action is aggressive and courageous enough The fact that men of such caliber and public standing as Charle: Dawes. Eugene Meyer, Andrew Mellon and the other members of the board have not only sponsored the organiza- tion of this corporation, but are willing to accept responsibility for its success, in itself justified the fullest degree of public confidence. If these gentlemen can get over to the public,_ but particu- larly to the banker, the idea that they definitely mean to stop bank failures, bank failures will stop before the cor- 5—Tne] its | G.| poration has used more than a minor portion of its funds. If and when the American public_believes that all bank deposits are safe, from that moment they are safe On the other hand, if each individual and particularly each banker, sits back and refuses wholehearted co-operation with the Reconstruction Finance Cor- poration it will’be utterly impossible for this corporation. this group of men, or any other corporation or group of men, to_prevent banks from failing. From the standpoint of the banker, the mere existence of this corporation should remove from his mind sufficient worry, as to the liquidity of his bank, so that he will again become a banker He should immediately demonstrate that he is s courageous as he would expect those men to be. Relying upon thelr help in case he is so unfortunate as to experience a run in the near fu- ture, he will start to operate his bank first' by granting whatever sound loans are being asked for in his community. Having met these pressing needs, he should give further evidence of his courage by the purchase of as many sound bonds as he can afford to carry Many sound bonds are available today at prices which will certainly not be duplicated in many years, if cozfidence in our general credit strugture is re- stored within the next 30 of 60 days. The banker should also recommend to those of his depositors and clients who normally are investors that they purchase similar bonds for their private accounts. There is no good reason why that he will make normal collateral | loans against such security to those of his customers who Wwish to make such commitments The individual or corporat should also purchase the kind of securities which ordinarily meet his particular requirements. In’ those few cases w e the individual feels justi- fied i ng to increase his total commitments, this is the time to borrow on_reasonable margin The individual who is pract ligated to take action tod “hoarder.” Under preva tunats vestor type ally ob- is the the conditions which have there has unfor- v to be justification for the withdrawa} of funds from some of our institutions. There has never been excuse for the retention of those 1 xcept in those | idual was so markets that that the pur- United States s would give him | urity, a8 he had | but an nd Ly he did ern; not only in the income not as currency also Immediate Purchases Advised. ¢ assurance that the Recor Finance Corporation should as to the safety of bank de- now becomes a disgrace. and | should attach to the person who continues to hoard currency. Cer- tainly those who still have some doubt as to the ability or willingness of this corporation to take care of their par- lar bank can have no possible ex- cuse for not purchasing United States Government short term securities or re- depositing through the United States Postal they are of the type| who can d to take And bu men and ord vestors consider the of an av less our comple an_utter iness should cred collapse. and that now see h an_ope nhesitatingly recommend that i icularly bonds individ- ma- bankers ST, hoarder. se immediat 2 may comply with requirements as to g By the Associated Press. CHICAGO, February 5 in values early toda ied New York Stock Market declir ence was a setback at Liverpool, where was reported as wheat qu demand for at to 1 off and contir e Tending to steady the wheat mar after early declines were rumors t Russia had dispatched 75.000 troops to Vladivostok. near the Manchurian bor- der, where Japan has been taking con- trol of railroad facilities to which R sia claims part ownership. The rumors, however, were unconfirmed. and for the time being failed to stimulate rallies | Bears continued to stress advices in- dicating that damage to domestic Win- ter wheat promised to be unimportant One leading crop authority asser that the cold might prove more benefi- cial than harmful beciuse of checking abnormal Winter growth. He said, however, that danger would come from another warm spell followed by a sud- den drop to around zero. Corn and oats traders took their cue largely from wheat action. Provisions reflected firmness of hog values. Southern Pacific Traffic. | NEW YORK. February 5 (@) — Traffic of the Southern Pacific system is running about 20 per cent under last year at this time, Paul Shoup. president of the road, said toda This rate of decrease is al might be expected in view cf ge conditlons, he_ said. Regarding the railway said “It cannot bo what extent railroad employment increase through the wage redu: agreement, but it can be said that | out doubt there will be a great acal more employment than if the reduction had not been agreed to.” | The Southern Pacific, Mr. Shoup said vill place orders for 20,000 tons of this week, and will make substantial | purchases of ties. wage cat, he imated as to will From Y 50 Today..... Previous da; Week ago.. Month ago. Year ago......... Three years ago. Five years ago. ... 1086 High, 1932........ . 68.8 Low, 193 1580 High, 1931. 1402 Low, 1931... . 60.0 High, 1930. . 12024 Low, 1930.. 129 61.6 . 6L . 610 . 583 L1248 .216.0 20 Industrials. Today..... Previous day Week ago.. Month ago.... Year ago...... Two years ago. Three years ago. High, 1932.. Low, 1932.. High, 1931. . Low,' 1931.. High, 1930.. Low, 1930.. 61.6 67.8 STOCK AND BOND AVERAGES By the Associated Press. ay's 5:30 Ed STOCKS. Industrials. BONDS. 20 Utilities. 91.8 98.2 7.7 92.7 171.8 2164 102.5 106.0 92.7 203. 92.8 281.3 63.8 60.1 129.7 203.6 106.1 0.8 60.0 1443 61.3 205.8 1147 60 Total. ASI GAIN IN INSURANCE DEMAND FORECAST Santiago Disaster Expected to Increase Earthouake Policies. BY ROLLIN M. CLARK. An increased demand for earthquake insurance, particularly in the South- eastern States, is anticipated as & re- sult of the Santiago disaster. It has always been the experience of this country that an earthquake scare develops at once in the vicinity of a section which sustains a severe shock. For example, earthquake insurance premiums in California in 1924 totaled $290.000, but in 1926, the year aftar the Santa Barbara quake, they had in- creased to more than $2.500,000. Freeman's View. Two factors stand out to allay any fears that citizens of Florida and other nearby States may have regarding a possible recurrence of an earthq their sector at this time. First tiago is in a major earthquake belt, while the Southeastern Sta and secondly, records indicate a period of immunity from destructive quakes in a locality following the occ latter is the a prominent engineer and insurance ex- ecutive, who has just completed a 900- page volume on the subject of eart quake damage and earthquake insur- ance. Mr. Freeman that eartl expresses the opinion rance can be w ten successfully in the United St y at an unusu W rate which have a popu appeal. He d have this coverage combined with e policy to mi nderwriting — expense. ‘This method of including earthquake cover- age with fire insurance was recently adopted for San Francisco and vicinity, accompanied by a drastic reduction in premium rates It is Mr. Freeman's contention that similar protection could be made avail- able for dwellings east of the Roc Mountains at an additional annual cost not to exceed 2 to 5 cents per $100 of ance, provided the insured would agree to stand the first $50 of damage to allow for possible old plaster cracks. In 1930 the average earthquake ins ance rate in the United States was near- his arguments for popu- larizing this form of insurance through lower premium rates Freeman points to the as been ficient to destroy structures in any ne earthquake, the successful ance of hundreds of ordinary standing in close proximity to dam structures, the small average proportion of damage in relation to the sound value of the property found within affected areas and, finally. a_contention that earthquake-proof buildings can be built, to & height of 100 feet at a very small increase in cost over unsafe buildings Result of Inquiry. The studies made by this investiga- tor have led him to the conclusion that o future earthquake will be more seri- han those which have occurred in the past and that only one major Gisaster may be expected. on the ave- rage. in the region east of the Rockies ev y century (Copvright, 1833.) Baltimore Markets : beans, bushel, crate, 1.40a1.50 quart, 10al5: cabbage, ham- caulifiower, crate, 1.50a per hundred pounds, 3.00a crate. 1.50a2.75; spinach, celery, crate, 1.50a3.00 bushel, 150a2.00; tomatoes, 100350 eggplants, crate, 150a turnips, 35250 bushel, 35a1.50 2.25. oranges, berries, quart, 25; kale, bushel, 30a40 Dairy Market. 18a21; leghorns, 15a leghorns. old, 14a 10a12: d 12a20: geese, 11217; guinea fowls, pair, 30a65; tur- keys. 16a32: pigeons, pair, 2082 Eggs—Receipts, 1,856 cases; ts, 16; western firsts, 16. B good and fancy creamery, 21a 24'.; ladles. 15al6; process, 20821; store packed, 10all Live Stock Market. Cattle—Receipts, 500 head: supply: market steady. Steers—Choice to prime, none; good to_choice, 6.00 to 6.75; medium to good, 475 to 575: fair to medium. 4.00 to 475; plain to fair, 350 to 4.00: com- mon to plain. 3.00 to 3.50 Bulis—Good to prime. none: good to 1e: medium to good. 4.00 to 5: fair to medium. 350 to 4.00; plain to fair, 3.25 to 3.50; common to plain, 3.00 to 3.25 Cows—Choice to prime, none: good to choice, none; medium to good. 3.75 to 4.00; fair to medium, 3.25 to 3.75; plain to fair, 2.50 to 3.25; common to plain, 1.50 to 2.50, Heifers—Choice to prime, none; good to choice, 5.00 to 5.50: medium to good, 450 to 5.00: fair to medium. 4.00 to 4.50; plain to fair, 3.00 to 4.00; com- mon to plain, 250 to 3.00. Fresh cows and Springers, 30.00 to 60.00. Sheep and lambs—Receipts, 200 head: light suppiv. market steady: sheep, 1.00 to 3.00; lambs. 4.00 to 7.40 Hogs—Recelpts. 1,100 head: light supply, market steady: lights. 4.50 ta 4.95; heavies, 4.25 to 4.50: medium, 4.65 to 4.90; roughs. 275 to 3.75; light pigs, 4.00 to 4.50; pigs, 4.25 to 4.60; trucked hogs. none Cattle—Receipts, 75 head; light sup- ply, market steady; calves, 4.00 to 9.50. Hay and Grain. Wheat—No. 2 red Winter, spot. domestic, 61!, 611,; March, 623, Corn—No. 2 yellow, 43a44: cob corn, new, barrel Oats—No. 2 white, domestic, 35235 No. 3, 34a34!, Ry carby. bag lots, 40245, Hay—Receipts; 13 tons. General hay market quiet. Receipts ample of timo- thy, but good, mixed hay scarce and bringing premium. Prices range from $12 to $16.50 per ton, as to grade and kind. Latter figure for choice clover mixed. The poorer grades of timothy are irregular in price. Straw—No. 1 wheat, 8.5029.00 per ton; No. 1 oats, 9.00a10.00 per ton. WORKMEN'S INSURANCE RATES ARE INCREASED Special Dispatch to The Star. NEW YORK. February 5—Rates on workmen's compensation insurance have been increased approximately 19 per cent during the past year and, if pending revisions by the rate-making bodies are approved, another 1 per cent will be added. During 1931 the Legis- latures of 31 States enacted amend- some of which would obviously the cost of such insurance, the National Industrial Conference Board says However, a still more serious problem was presented because of the falling off n industrial pay rolls due to the depression. All of the rate increases going to make up the total of 19 per cent in- crease during the past yvear have been emergency rates, made largely to wips out a deficit in the premium income. 5al.25 onions Chicke 7: old hens 5. Tooste <, young 13a18 nearby fi light garlic! February delivery, spot, domestic, 200a2.10 per