Evening Star Newspaper, February 6, 1932, Page 14

FEL RUARY 6, 1932. FINANCIAL. [ovses o BONDS o v ] ) ||, §, BANKS SERVING PUBLLC i I ATER: Bll!l.‘ Hign - Low. How Institutions Met Odds in 1931 Is Explained by Bank- ers’ Monthly. FINANCIAL, ANY LOANS PAD | INWESTERN BANKS ;'Money Has Come to Min- neapolis Rapidly During Past Few Weeks, Says Survey. THE EVENING STAR, WASHINGTON, .D. C. SATURDAY, NEW YORK STOCK EXCHANGE | BONDS DEPRESSED T =t AT SHORT SESSIUNL Continued Decline in Equities";, Has Unfavorable Effect in Trading. Bales. High Lake Shore 3343’97 Lautaro Nit 63 ‘54. | Lieh Valcv 45 2003, | Liz & Myers 63 '61. Loew's 63 ex w '41.. Long Isl rf 4549, . Lerillard 58 '61. La & Ark 55 °60. Lou G & E1 6352, L & N uni 4840 L & N 41452003, Lvons 6s'34.. Low. Close. 75 12% 58 % 12% 53 98Y% 831 73 85 A2 92 | ‘4‘41 64z | 100 34 | 100 64 Close. 949 983 Bales— Net. Add 00. High. Low. Close Chse. 108 1061 106% 1063 3 5% 5% 35% 34% [T 24% 28% 67 67 1 8% 8% E 2% 21 2% 39% 1% 8% Btock and Dividend Rate West Pa Pwr pf (7). Western Dairy (B).. Western Maryland Western Unfon (6) Westinghse A B(2).. Westinghouse (23%). Westinghse 1st (31) West Vaco Chlor 1.6( White Motor. ....... Wilcox Oil & Gas Willys-Overland . Willys-Overland pf.. Wilson & Co (A). Woolworth (2.40). .. Worthington Pump. . Wright Aeronautical 8% Yale & Towne (1 9 3 Yellow Truck... 3% Dividend rates as given in the above table are the annual cash payments based on the latest quarterly or hali-yearly declarations. *Ex-dividend. s Unit of trading less than 100 shares. 1 Partly extra. $Plus 4% in stock. a Paid this year—no regular rates. ePayable in cash or stock. f Plus 8% in stock. hPlus 2% in stock. ) Plus $1 in special preferred stock. k Plus 3% in stock. mPaid last year—no regular rate. nPlus 5% in stock. P Plus (Continued from Page 13.) Bales— Lib 3% 8 32-47 9412 949 84%s32-47 55 983 9730 h4%z33-28246 994 99 51951-5... 16 85 8510 149 26 86 15 % M41-3 91 91 20 %57 40-3. 9 9126 %s43-47. 18 9018 9016 %8 46-56. S 43 44-54. 7 92 92 US4i%s 47- » . High. Low. Close Ch 204 2% 2 22 224 224 18 13% 13% T % 4 4 15% 15% 38 38% 100% 1031 Stock and High. Low. Dividend Rate. 1213 1% U S & Forn Secur 77% 20% U S Indus Alcohol. 374 10 U S Pipe & Fdry (2). 36% 54 US Realty & Imp. 20% 33 US Rubber. ... 12% U S Smtg & Ref (1). 3 U §Smlr&R!lpl!\fi 36 U S Steel (2). 94 U S Steel pf (7) 136 U S Tobacco pf (7). . 52 21 United Stores pf (4). 31 7% Util Pwr & Lt A (2). 76% 11 Vanadium Corp 71% 20% Vulcan D'tinning (2) 26 Wavash R R. . 51 Wabash RR (A). 27% Waldorf Sys (1%). 8% Ward Baking (B). 5Tis Ward Baking pf (7). 20% Warn Bros Pictures (e » Warner Quinlan 57% Wesson O&Sn prm. 1z 99 4 8514 86 16 91 26 91 26 90 18 92 96 10 100 4 1 ] J ] 4t s s s s s s s 3 3 3 Us3 USs3 USs3 US4 121 96 969 6 1003 High Manh Ry 1st 48'90. Marsellle 65 '34. Milan 6%48°52. ..., MIl E Ry & L 68 '61 48 100 Bales. 1 2 4 15 29 Low 10 34 31 28 28 57 93 101% 9074 IS 13714 Close. Abitibl P&P 58°53. Alleghany Cp bs 44 Allegheny 5849 Allegheny 68 '50... Am F P 582030.... Am Metal 5%8°34.. Am S&R 1st b8 BY F. H. RICHARDSON. Special Dispatch to The Star. NEW YORK, February 6.—Bonds dipped to new low ground on the move- ment in moderately active trading ! {today. The market lacked any in- | AmT&Tcv kel TaT6s ¢ centive toward a rally because of the |AM ; continued slide of stocks and the ger= | A IET S temlcs: eral pessimism in the air as the week | fev ended. ‘lm T&T 6% s 43 Railroad bonds were under the | Argentine 5s°45. Bpecial Dispatch to The Star. MINNEAPOLIS, February 6—The ninth district Reserve Bank reports ‘ that customers of country member banks repaid loans to these banks at| an unusually rapid rate during the| fourth quarter of 1931 This conclu- sion is based on & preliminary tabula- tion of the loans and investments of member banks in the district as of De- 1t can hardly be called anything but |a triumph when you realize that the | banks of America had almost insur- mountable difficulties to work against C&T in 1931, says the Bankers' Monthly, MK&T In 58A’l Mo Pac gn 473 | published by Rand McNally & Co. Mo Pac 55 F 77 5 | 53 | It was not enough that we should Mo Pac 53 G 78, . 5315 5 Have had to suffer from the greatest Mo Pac 5s H '30. . 3 |stock market crash in history. We Mo Pacrf6ss1... | have also had to deal with the greatest Mo Pac5lksA'49.. world depression on record MK &T 45 B 6 " M K & T adj5s '67. 1% 1% 1010, oEn 36 14 % 48% 73 West Pa Elpt (7). cember 31. In the fourth quarter of | 1931 the reduction in loans to custo- by country member banks was 700,000; in the fourth quarter of the reduction in customers’ loans | 5.100,000; in the fourth quarter of e reduction was only $500,000, the fourth quarter of 1928 the s $1,600,000. Of the loan customers of country ng the last three months of 11 part, about $2,000,000. the elimination from ' the figures of member banks um\l\ closed during the quarter. An- other small part of the reduction was oubtedly due to the writing off of in losses, but even after allowance for these two factors, the fact remains that the loan repayment by borrowers from country bakks was greater in the latter part of 1931 than in the same portion of any of the preceding three panks 1931 due to lable evidence shows that the de- depcsits of country banks dur- juarter was more raptd than in loans. This was evi- in their security es due from cor- nd by increases in from other banks. | banks decreased their holdings (including accept- al paper, broker's loans ies) by $11,000,000 during the last quarter of 1931. During ap- proximately the same period, the wee reports of this bank show that country "i‘mbt“ banks increased their borrowings from the Federal Reserve Ba x«’\rl\ $2,000,000. Records of the group of city banks which report weckly to this office show that corre- nt balances for country banks ng both member and non-mem- ks, decreased $9.000,000 during last quarter of 1931. The called reports of these same city banks Teveal fhe fact their joans to country b ¢ both member and n member b increased $1,000,000 dur- ing the quarter. During the ye: 1931, loans and in- westments of country member banks | reduced $56.000,000, or 11 per t Loans to customers were reduced lh”“r\ 000 and investments were re- ed $22,000,000. Throughout the {ry member banks maintained her totals than d in t banks untry m estment es, com secur 1 y member | the district do not reveal e city banking trends of the of 1931, because the depos- nember trust company and a savings bank were absorbed by one of these nks during the | quarter, whic the figures of | the group. fig: as reported, show an increase of $6.000,000 in loans | to custom and a decrease of $14,-| 000000 in investment holdings. of Janu- member banks increased wings from this Federal Re- a small amount, which was, nevertheless, sufficient to raise their total borrowings to the highest figure for any January since 1914. STEEL PRODUCTION IN U. S. ESTIMATED January Figures of American In- serve stitute Show Gain Over December Output. B5 the Associated Press NEW YORK, February 6.—Steel in- got production in the United States for | January, as calculated by the American | Fron and Steel Institute, showed a | slight gain over December, but was the &mallest for the first month of the year | 1908 he calculated output of all com- nies was 1,461,290 tons, a small in- ver the previous month, when s 1,302,399 tons, but substan- “Jess than that of January of 1931, the total was placed at 2.458,689. ith the exception of December, the for January was the lowest since tember of 1921. In no first month @f the year, however, Iron Age's records sh no such small output since 1908, Jhen the January total was only 934 000 tons. The institute’s tabulation Foes & y to 1917. Operations during January averaged 54 per cent of capacity, an in- creased from 23.58 per cent in Decem- | ber, but this compared with 42.86 per ¢ent in January of last year. The aver- Sec for 1931 Was 3960 per cent. CHICAGO STOCK MARKET CHICAGO, February 6 [he he complete officia (#).—Follow- list of trans- Chicago Stock Hygh. Low. Close e 28 str o West Chicago icago Pl Lakes Rireratt 00 ¢ Srunow €800 T 00 Insull 300 1ron 100 Jeflers: Leshy d ser.! 182 5558 Bancorp vest Util 2 [ 50 Process 150 Publ! 40 Pub s a 85 2 320 Quaker Oats P50SaB5m— S 3 Intl 30 Wacker Dr Bid Co ‘pi 700 U S Radio & Tel.. et = | dropped from 25 t. 312 212% in stock. JEWELRY TRADE AFTER 2 UNFAVORABLE YEARS Outlook Brightened by Proposed Control of Production and Materials—Prices Are Advanced. Special Dispatch to The Star. NEW YORK, February 6.—Jewelry| broke away from the category of the | luxuries many years ago. In all civilized nations it has become a necessity, be- ing just as necessary to the toilet of the well-dressed woman as are her hat | and her shoes. It 1s chos2, too, Wwith the same fastidious regard for line and color, says a special survey prepared by the research department of R. G. un & Co. For there is nothing that can add more lavishly to a woman's charm or enhance more strongly her personality. It is one of the chief contributory touches to that undefinable allursment upon which man’'s aggressiveness and courage have fed for un‘old ages. To | provide the jewels for her undying ce- light and perpetual .oveliness has been the motive behind more wars of con- quest than history is willing to record. Unfortunately, * like many of the necessities in the decade prior 1o 1929, the buying public has Lcen ferced to eliminate from its budget most Of the allowance ordinarily allotted to jewelry. That it could not suppress entirely the desire for it is evident in the shift to substitutes in the form of novel with a lessened intrinsic value, Sales Decline General. In spite of the ncrease, however, in the sales of items in th> lower-priced brackets during 1931, neither volume nor dollar total came anywhe.e near the record of 1930. Taking the country as a whole, sales of staples, sich nis clocks, watches, silverware and novelties, de- clined from 15 to 35 per cent from the total of the year previous, while sales of precious stones, :ncluding diamcnds, 50 mer cant, The decline in ‘'ne dollar value of merchandise sold was even larger, be- cause of the price recession in most items offered. The larger quantities of | distress merchand:se which were thrown on the market duriag the holiday to be moved at any prica, keep the dollar sale ing a better showing The Christmas trade, on vhich so many retailers had ouilt high hoves was a disappointment in most centers. In the New England States and in some paits of the Middle West sales nearly were on a par with those of 1930, but even in these territories the concen- tration of demand on the cheaper grades of goods naturally brought aown the dollar volume. Ordinarily, retaflers of fewelry record their heaviest business in December, | period, did much to volume from mak- | sales during that month constituting per cent of the entire annual volume. June is the second hLeaviest month, with 7.9 per cent of the sales; and November takes the third place, with 7.4 per cent of the total vear's volume. The remainder of the business is distributed over the vear as follows: January, 5.11 per cent; February. 4.5 per cent; March, 52 per cent: April, 5.6 per cent: May, 6.9 per ceni: July, 5.9 per cent: August, 6.3 per cent; Scp- tember, 7.1 per cent, and October, 6.9 per cent Varied Lines Handled. ! As the department stores each year are advancing in their encroachments | on the field of the retailers of jewelry exclusively, the latter have been forced to add more and more lines to their | stocks, in order to maintain volume. | As a_consequence, the retail jeweler now handles not only precious metals and gems, but nearly everything of an artistic and ornamental nature, includ- ing art pottery, fine china, glass, bronzes, marble statuary and paintings. | Frequently scparate departments are maintained for fine leather goods. trav- | eling accessories and toilet sets, feather | fans and art objects of bronze and | copper. Chests of mahogany and rare | woods frequently are carried in con- | junction with the silverware goods. while umbrellas, canes, fmlntnm pens and razors are featured in the sections handling merchandise for men. Whil2 stationery departments long have bcen maintained in retail jewelry establish- ments, they now have been enlarged to include all the requisites of the writ- ing table. The number of side lines h'mdlod seems to depend largely on the clien- | tele served and on the nature of the | competition offered by the local depart- | ment stores. For the purpose of & | general summary, it may be stated that the stock of the average retail jeweler falls into the following classification Article. Per Cent. s stones . Jeweled watches Silverware . Gless, china, pottery. Toilet goods and novelties Stationery . Other articles . 100 Because of the nature of the lines | handled, jewelry stores are more elabo- rate in point of cquipment than the average retail merchandising establish- ment. This naturally adds to the overhead, which is increased further by the safety measures that must be maintained in the shape of massive vaults, burglar alarms and detective service. This brings the operating ex- pense of the modern well equipped retail stores up to 37.7 per cent of net sales for firms doing a business of less than $20,000 a year, and 35.7 per cent for those doing a business of more than $20,000 a year. The stock turn ranges from 0.8 per cent a year for the small stores to 1.1 per cent for the large | ones. Repairs Sustain Volume. Of the total of net sales in 1931, it | is estimated 21.1 per cent was the re- sult of sales of diamonds and other precious stones, while watches con- tributed 15.7 per cent. Sales of gold and platinum jewelry added 12.9 per cent to the annual total, with repair work accounting for approximately 12.6 per cent. The material needed for repair work amounted to about 2.8 per cent of the total inventory value. In fact, many practical jewelers, who for many years had slipped away from the technical end of the business to devote their efforts to buying and sell- saoSeSeEnaand 23wal s today, 58,000 shares. BONDS. 166000 Insull Util 6s 1940.. 20 3000 Chi C Ry ctfs 5s '37_42% i Bond sales today. $171,000, ing alone, were thankful last year that they had not lost their skill as a watch- maker, engraver or jewelry repairer. For it was the cleaning and adjustment of watches and clocks, modernizing Jewelry settimgs, stringing and match- | the rule | tually all the new platinum production IS IMPROVING Sales of Essential ing pearls and beads, repairing fountain pens and engraving that cnabled many a jeweler to pay his rent and save him from writing off & loss at the end of the year. Manufacturers’ Output Low. The productive branch of the industry | made a more favorable showing in 1931 | than the distributive branch. Thas is, | the decline from the 1930 level was le: marked. This was the result large | of the drastic cut in production in 1930, which brought the year’s cutput to | nearly 25 per cent under the 1929 record. As the carry-over stocks at the end of 1930 were exceedingly large, manu- facturers aligned their output in 1931 to actual orders. As a result, part-time schedules were throughout the entire year, with over-time work :ntirely absent, even during the holiday season. It is necessary to go back 1921 to find a year with an output as low as the $136,- 88,892 estimated for 1931, Most of the jewelrv in the United States is manufactured in the Eastern States, with New York as the center of the manufacturing and _importing trades. Of the annual imports, approxi- mately $19.000,000 is representea by precious metals, chiefly platinum. Of the precious stones brought into the country each year to the value of $75,- 000,000 rough uncut diamonds account for $12,000,000, unset diamonds $42,- 396,000, and pearls $7,060,000. Numerous Price Readjustments. Although less drastic than in many other industries, several important price changes were announced in the Jewei:y trade during the past year. Quotations on platinum were advanced about 10 per cent a year ag, and have con- | tinued practically unchangcd. Cut dia- monds now are cheapcr, because of a 10 per cent reduction in the import duty. which became rffective in 1930: uncut diamonds are duty free. Other precious stones have been tairly firm in price, but synthetic gems have tended to depress quotations There have been no changes of con- sequence in gold prices, but crude filver is low. This has resuitad in a drop of nearly 30 per cent in articles manu- factured of sterling silver, tnd 10 per | cent in silver-plated ware. In fact. current prices of sterling snd plated | silver are so low that the public is beginning to increase its purchases. American_ silverware today compares favorably in design and workmanship with any European product, and lends itself to so many uses that at present prices even the modest home can step out of the dining room and enjcy the benefit to be derived from additiona! purchases. For silverware aiwavs has been a prized possession, and “he jact that it is so enduring makes it valued as an heirloom. Pride of possession and lasting worth keep the demand for 1t fairly _constant. Last October a company was organ- ized in London to buy and resell vir- originating in Russia, Canada, South Africa and Colombia. This constitutes the major portion of the world output of this precious metal. Since the for- | mation of this company prices have been firm, with indication of further advances at the first signs of increased demand. Diamond Prices Pegged. The feature of the diamond market today is the better tone evident not only in the United States but through- out Europe. This is due largely to the announcement in November of the rati- | fication of the agreement between the | Union Government of South Africa and | the Diamond Corporation, Ltd.. which provides for a control of production and sales until December 1, 1934, thereby maintaining a uniform price standard No new sites are to be shown until August, 1932, and production in alluvial fields in South Africa has been reduced to about one-tenth of what it was a few years ago. The fact that diamond shares have WASHING declined greatly on the London Stock Exchange encourages the diamond trade, while it discourages diamond share investors, because of the reasons for, the decline. One of these is the fact that the mines have been working at a loss. It recently was cited that during 1930 one of the leading mines in South Africa produced diamonds to a total value of £140,000 sterling, while the cost of mining amounted to 1260, 000 sterling. Consequently, the mine produced as little as possible in 1931. and during the middle of the past month discontinued work entirely. Another factor that has made for improvement in the diamond trade has been the growing demand for this stone for investment purposes. This has been brought about, in part, by uncertainty of the value of currency in various countries, and many wise investors feel that they can insure themselves against depreciation by buying diamonds, as | their bulk is small and the demand for | them universal, Collection Status Unfavorable, ‘When compared to the sales, collec- tions for the year were considerably below the average for the last five vears. Slowness was in evidence par- ticularly in the South and on the Pa- cific Coast. The widespread unemploy- ment had an unfavorable bearing on | installment payments in nearly all dis- tricts, and collections in this division were difficult. The credit loss on the total net sales for 1931 was 0.61 per cent, taking re- | tail distribution as a whole, ranging from 0.23 per cent for stores doing a: annual business of $500,000 or more, to a high of 0.93 per cent for stores doing an annual business of $100.000 to $250,- 000. Apparently, most of the houses con- ducting a purely credit business are § cluded in the latter group. Only 2 per cent of the annual value of jewelry sales is made by installment houses. The credit loss in stores located in the large cities was much below that of the small towns. This means that credit terms are much more rigid in the large cities or that they are more effectively enforced or that a better collection system is operated. In geo- graphical diisions, the largest credit loss of 1.08 per cent on total annual | sales appeared in the Pacific Northwest. with the smallest. of 024 per cent, in the New England States. Outlook Better Than In 1931. All branches of the jewelry industry are far more cheerful regarding the | prospects for increased business than they were at the beginning of 1931. the holiday business started so late in December, many purchases were carried over into January, some retailers re- porting an unexpectedly large volume for that month. Current business has been fair, with sales on the increase in those districts where farmers now are receiving money which was intend- ed for payment in December Retailers' stocks have been depleted in most instances to the point where the greater portion of their sales now are being passed on to the wholesaler and manufacturer. No purchasing for stock is anticipated until there will have been sufficient activity to make prices advance. Even then, doubtless, pur- chases likely will be held down to small quantities, because of the difficulty that retailers have experienced in ob- taining credit with which to meet their current obligations. In spite of curtailed buying power and uncertainty of outlook, it must be remembered that the desire for the possession of jewelry never lessens. It !is a desire that runs the entire gamut of peoples of nations, with but little of its strength impaired in the up- swing from the savage to the cultured member of modern society. At present the desire awaits only & more favorable turn to break through the repressions that the last few years of enforced economy have hardened Weakness in Rails. NEW YORK, February 6 (Special).— The weakness in railroad stocks today could only be accounted for by Wall Street as due to the application of the Pennsylvania Railroad for assistance from the Reconstruction Finance Cor- poration in_financing its electrification program. This was an unexpected peti- tion, coming from one of the strongest railroad credits in the country, but in- asmuch as it has to do with capital | improvements rather than with re- quirements for interest charges or ma- | turities it has less significance than Wall Street placed on it. GTON STOCK EXCHANGE QUOTATIONS AND DAY’S SALES SALES. ashington Gas _6s 100'4, $1,000 at 100}, Capital Traction 55—$1,000 at 60, $1,000 at 60, $500 at 60. Bid and Asked Prices. BONDS. [ PUELIC UTILITY. Amer, Tel, & Tel. 4%s '39 n. Tel. & Tel. ctl. tr. 5s. £ Pot. R, Rl bs . & Pot. Guar. bs P. Tel. of Va. 55 al Traction R. R & Suburban “A"—$1,000 at Lol Potomac Elec. Potomac Elec Wash., “Con: 65 1 Alex & Mt. Vernon ctf s s . series A ceries B Elec. 4s MISCELLANEOUS. r & Ross. Inc.. 625 Chase Club 3%as Columbia Country Club 525 W. M. Cold Storage 55 STOCKS. PUBLIC UTILITY Amer. Tel. & Tel (9)........ Capital Traction Co. (2) Wash. Gas Lt. Co. (i8) .. N. & W. Steamboat_ (12) Pot. Elec. Power 6% pfd... Pot. Elec. Power 5127 pfd Wash Rwy. 1. com. (7)., Wash. Rwy. & EL pfd. (5)] NATIONAL BANK Min. price. Agked. 175" 550 313 i 190 * 400 275 50 Capital (14) . Columbia (12} Commercial (stamped) (10} District (8). Fed.-Amer. Natl. BK. & Tr. Liberty (79)......... Lincoln (10)... Metropolitan <m Riggs (15)..... Second (9¢) Washington @ 2 TRUST COMPANY. Amer. Sec. & Tr. Co. (15)..... Natl. ‘Sav. & Tr. (12f)..... Prince Georges Bk. & Tr. (6). Union Trust (8s).... Wash. Loan & Tr. (16)....." TITLE INSURANCE. Columbia (6h) .. o Real Estate (6h).... | United States (30) |Dic: |w SAVINGS BANKS. Bank of Bethesda (61) Com. & Savings (10) East’ Washington (12) 00 Pot. Savings Bank (10) 5 ec. 8av. & Com. BK. (17)...! venth Street (12)........... Wash. Mechanics (20) FIRE INSURANCE. American (12). : Cyrcoran (10) Firemen's (8) National Union (i3} MISCELLANEOUS. Barber & Ross, Inc., Col. com Medical Bidg. Corp. Paper_ Mfg. pfd Dist. Natl. Sec. pfd Emer. Bromo-Selz. A" Federal Storage pid. (8) Fed.-Am.” Co. com. (1.20f) Fed.-Am’ Co. pfd. (6).... Lanston Monotype (6) Mer. Tr. & Stge. com Mer. Tr. & Stge. pfd. 6) o (10) N ‘Mergenthaler Linotype (6) Natl. Mtge. & Inv. pfd. (8) ' [ Peoples Drus Stores pfd (8iz).. Real Est. M- & G. pfd. (8) fecurlty Storage (o) ... 10 er. Re vh. Corp. (3) The Carpel. Corp. (3) Meeh. Mige. com (6 Wash. Med. Bldg. Corp. | Wdwd. & Lothrop com. Wdwd. & Lothrop pfd. *Ex dividend bEooks closed na5c extra. 130c extra 81% extra eltz% extra, Unlisted Department. BONDS. Army-Navy Club 5s. Cosmos Club_ 43as Comumercial Cluo Mayflower Hotel 65 Meiropolitan Club 435s.. . Nat. Press Bldg. st 5125 . STOCKS. Anacostia Bank.. Chapin Sacks 8% pf Connecticut Ple Co... Chr. Heurioh Brewery. District Title Insurance Co Pranklin_National k. Munsey Trust Co.. North Capitol Savings Bank.''. ..... National Capital Insurance Co.. Northeast ~Savines Bank : Park Savings Bank. Raleigh Hotel Co. Washington Savings i Washington Title Insurance Co. Washington Base Ball Club Wocdridge-Langdon Sav, Bank. 2% extra. ¥21%c, extra, 3 extra. h47 extra 5% extra Minimum price Asked 90 As |} heaviest pressure and some of the more highly speculative types touched levels not far above the December lows. The highest grade issues remained firm be- cause of the steady demand from investors for these descriptions. One Stock Exchznge house today sent its | advised as purchases more attractive than common stocks. The list included bonds of roads that have earned fixed charges one and one-fourth times or better in 1931. The weakest of the junior types were Chicago & Northwestern 4%s, Western Maryland 4s, Missouri-Pacific 4s and bs Illincis Central 4%s, Rock Island re | funding 4s, Chicago Great Western 4s, Baltimore & Ohio 4!2s and Alleghany Corporation 5. High-grade utilities were _steady. American Telephone 5s were unchanged Consolidated Gas 5'ss were narrowly lower sues as New York Telephone 4,5, Duguesne Light 41,5, Utah Power & Light 5s, P:uladelphn Co. 5s and West- ern Union 5s. Industrials were gen- erally lower, however. United States Government bonds were 2/32 to 632 | higher. Municipals lost ground slightly. | In the foreign department a lower range of prices was the rule. Japanese Government s and 6';s were off fractionally. Tokio 5!25 and Yokohama 6s sagged. The Far Eastern situation was still a source of uneasiness. German Government 5!,5 and Dawss Reparations 7s dipped about a point. German Central Bank issues and Ger- man municipals and corporate obliga- tions were lower. Other Europeans were mnot much | changed. but had a tendency to ease. |sterling. South Americans were gen- erally lower, Argentine 6s of various maturities by a point or more. Aus- tralians continued firm. BUILDING PLANNED Building permits issued In fifth dis- trict cities in December, 1931 and 1930 Reserve Bank of Richmond; Permits issued. Total valuation. 1931 1930 $801.600 $1,842.240 465 580 19,100 11:855 Va Va Va | Betersburg | outh nd. 8385 125,831 41,654 | 141350 | 1 V. Va | cn W Va £ W, Va c e c Jr.es0 3 1:320 N. C e High Point Ralelgh, N. Rocky Moun Washington..... 1.386:125 INVESTMENT TRUSTS NEW YORK, February 6 (#)—Over- the-counter market: A B C Tr Shrs Totals . 1,826 $3,039,0. Bid. Asked Am Am Pars cv ol ctis & Am Ins Stocks Assoc nd Ot | Atl Sec g Atl Sec war Atl & Pac Int units Atl & Pac com ww All & Pac pf war Bankers Ni g B! Jla Corp . Industry ral Nat Gorp Chartered, Chelsea Exch 2 Chelsea Exch B Cumulative, Corporate Tru: Corporate Trust A A Corporate_Tru: Crum & Fost | Depos Bk St Div Diversified Tr fied Tr D Eauity Invest conv stpd | Equity Trust Shrs Five-Year Fixed Tr Fixed Trust Fixed Fund Tr Fund Tr Granger Gude Wicmill Trad Incorp Tnvest Independ Tr Int Sec Corp Am A Int Sec Corp Am B |Int Sec Am 67 Int Sec Am 6 Inv Tr N Y Coll Invest Trust Leaders of T Leaders of i Leaders of Indust C w Priced Shrs ... fajor_Corp Si Fats Thvest Tr.. Mutual Inv Mutual Manage Nation Wide Sec . Natl Indust s Natl Tr Shrs 5 N Y Bk Tr 8hrs Oil Shares units Old Col Inv Tr Old Col Tr Assoc Petrol Trad A Public Serv_Tr Repres Tr Shrs Second Int Sec A " Second Int Sec B! Sec Int 6% 1Ist pf........ Secur Corp Gen $6 pf Selected Am Sh Selected Cumul Sh_. Selected Income Sh Selected Manage Trust Shawmut_Bank_. . Spencer Trask Fund .. Stand All Am Tr.. Stand Am Tr Shrs Stand Collat Trust.. State Street Invest Super of Am Tr A Super of Am Tr B Super of Am Tr C Super of Am Tr D Trust Shrs of Am... .. Trustee Stand Inv C Trustee Stand Inv D Trustex St Ol A... Truste St Oil Shrs B Trusteed N Y C Bank Trusteed Am Bk Sh. Trusteed Am Bk A Twentieth Cent Fixed Tr Two-Year Trust Sh. United Fixed Shrs.... Unit Fdrs 1-70th com. United Ins Shrs. United Bank Tr... U &« Brt Int Lid A S & Brit Int 13 pi U £ Elec Ft- & Fow A U S Elec Lt & Pow B. Universal Tr Sh. Estimated saving for the Chesapeake & Ohio Railroad during 1932 through the recent 10 per cent weg> reduction taken by organized | vill amount to around $4,000,00, i on the past, Yyear's payments. clients a list of 27 rail bonds which it | There was support for such is- | Great Britain 5!.s moved down with | IN FIFTH DISTRICT are reported as follows’ by the Federal | 3045 | CI 131910 | logss | 112,023 | | Finiana syses. .. | Int & Gr Wor 63 '56. Aryentine 5%s 62, Argentine May '61. Argentine 63 Ju's3. Argentine 65 Oc'69. Argentine 63 A '67. | Argentine 63 B '68. | Arm & Co 4% Arm Del 6% Atchison gn ¢ Atchiscv 4% At Gulf 68’59 Atl Ref db 53°37... Australia 43366, Australia 58 Australia Austria 78 '43. .. Austria 78 ‘67 ctfs. B&O4s'4 | B&O 4% B&OSwdvbs's0. Ban & Aroos 4s'51. | Bk of Chile 6% ‘67 Bk Chile 6%3 61 Belzium 63 ‘66 5 | Beigfum 6%s "49. Belgium 7s ‘56. | Belgium 73 '68..... Bell Tel Pa 53 B 48 Bell Tell Pa 53 C'60 Berlin Cy El 68 '55. Beth Stl pm 65 °36.. Bolivia 78 '69. Bolivia 85 47.. Bordeaux ¢s 34 Bost & Mo 4% '61. | Brazil 6% 10 100% 23 100 s 9 6% 6 & 5 100 10 69% 18% 18Y% 21% 98 850 9313 217 Brazil 85 '41 g Pk Ed gn A 6a'49.. | BXlyn Man 6563 ., | Bklyn Un 18t 68'60. | Budapest 63 '62. ... | Buenos A 6561 Pv. Bush Ter con 58 56 nada ¢s 6| Canada ¢%s Canada 55 '52. Can Nat Ry 44556 Can Nat 4% | Can Nat 58 July'ss. Can Nat 63 Oct '63. Can Nor 78 db "40. . | canPaca ¢a... | Cent 11 G&E 53'51. | Cont Pac 5s 60 Ches Corp b3 '47. Q11 dv 45 45, 1 ~h1 & Est 111 55'61 “hi Grt West 4559 Chi Ind&L gn 58 '66 | C M StP&P 68°'15 |CM&StPad)sa | Chi&NW 41482037, C&NW 4145 C 2037, | Chi& NWen4xs 5| Chi Rwys 55727 Chi RI&P gn 45 '88. Chi RI& P rf 4334 ChiRI& P 4%s'52 ChiR1cv4les 60, Chi T Hinc fs'60.. Chi Un Sta 4%5 63, Chile 63 '61. Chile 63°63. Chile Cop dh §s " 41 Christiana 65 °54. . R aRunanSe BoD L N o CCC&StL5 Clev Term 5873 Clev Term 5%s 72, | Colomb 6s Jan '61.. | Colomb 6s'61 Oct. Colon O11 68 '38. Col G&F 53 May Col G&E cou 6361, ConG NY 4%s'61.. ConG N Y 5%8'45. Con Pwr Jap 614s.. { Con Pow Japan 7s. | Consum Pow 5252 | Copenhag 4%s'53 Cuba 634845 Cuba R R 58 '52 Cuba RRrf 7145 Cuba Nor 53 Czecho 88 '51. Czecho 85 '52. Denmark 63 '42 Del & Hud 6% D&RG W 68 '55.. Det E G&R4% 561, Det Edison rf 58’49 | Dodge Brcl6s40.. | Duquesne 4348 | Dutch East 16552, | Dutch East 16847, | Erie 15t con 45°36.. | Erte cen 48 | Briecvbs67. | Erie 5875 s P e O R L PP Y CTST PP LTS PHOIRS L -y s |Fram 1D T%s"42.. French 784 French T%s ‘41 | Gen Baking 5% 40 | Gen Motors 6s°37.. Gen P Sv5ls'39.. Gon St Cas 55849, German 5% '65. German Bk Ger Cen Bk | Ger Cen Bk Ge*man 78 rep *49. German Bank 7s 50 Ger Gen El 78 '45. .. Goodrich cv 45.. Good 1st 6%3 47 Goodyr Rub 58'67 | GrandTr af db 6¥36 | Grand Trunk 7a'40. Qrt Nor 414576 D. Grt Nor 4%s'T1 E. Grt Nor gn 7s 36 Greek 65°63.. Hud & M adj 68 '57. Hud & M rf 68 "57.., Humble O 5%s'32. Hungary T%s 44 111 Rell Tell 53 °56.. 111 Cent 45 °'52. ... 111 Cent rf 48 '55. 111 Cent 4% "36 (11 Cent 6148°36. ... 11 CCStL&N 4%s.. 111 CCStL&N 53 A... 111 Steel 4% Int Rap Tr 58 Int Rap Tr sta ‘66.. Int Rap Tr és 32 Int Rap Tr 7s32... Int Cement 68 °48. . 8, Int & Gr Nor 6s'52. Int Hydro K1 6844 Int M Co s ret'¢l.. Int Match 53747 Int Pap 58 A "47. Int Pap 6s'56... Int Ry C A 58°72... IntT&T4%s"62.., Int T&T cv 4 % 8’39, Int T & T 6855 Irish Free St 53 '60 ltaly 78 '51... Italy Pub S 78 '52.. Japanese %865, . Japanese 6145 '54. . Jugosl Bnk 78 '67.., Kan City Ter 4530, Kan G&E ¢35 '80.. Karstadt 6343 Kresge Found Kreug & Toll 6s'59. Lac G St L bs 34 Laclede %8 C53.. Laglods 5348 D60 . e “ ber Sacnue G308 vHularasrhBhnum e ema~a 0= A 55 97 70 w - Nassau Elec 45 '51. Nat Dairy 5% s ‘48, Nat Steel 53 ‘56 Netherlands 65 72 N Eng T 1st 5552, Nw S Wales 65 '57. Nw S Wales 4 NYCgn3k%s97.. N Y Cent4s'os. ... X Y Centdb 4s'34. N Y Cent 4, q:lwu disn 5s B'44. Fd4 15t S“ill HE&H cd s’48. Y Rys 6s A '65. Y'J»lll/n ‘39. Sh Md5%s ord 64 ‘50 Nor Am Ed 55 C 63 Nor Am E 5%s'63. orOT & I.6s'47. Ncr Pac 48 " ceea Nor Pacri 047. Nor St Pw £s A "41. Nor St Pw 6s B *41, Norway 5% '65. orway 6844, orway 6s'52. Oreg-TWash 45°61.. Orfent dev 64 8'58. Ortent dev 63 ‘3. Pac GRE 58 '42.. Pac TAT 1st 6837, Pac T&T rf 5952, Paramount 6347, . Paris-Ly M 68 '53.. Paris-Ly M 7 '68.. Penn 434 s D31. Penncv4s 60 Penn 44570 Penn i Penn Penn Penn Penn P&L 4348 31 Pere Mar 4145 '80.. Pere M 1st 58 '56.., Peru 63°60. . | Pntia Co b 6 Phila Elec 4811 Phil & Rea” 6349, Philllp Pet 5% Philippine R P& W V4%sC60. Poland 7s'47 Poland 8550 Port Gn El 415 5'6! or R Am T 65 42. { Pos Tel & C 55'53 Prussia 6s | Public Serv s PubSvG4ls Pure Ofl 5% 37 Queensianc es 47 Queensiand 7s“41. Rem Arms 65 A '37 Rem R6%3 A 47.. }nnme.he T8'46.... Rnine West 6352, | Rhine West 63 55. e West 7850, 0 Gr W clt 48 '49. Ar& L4l 34, Rome 63458 '52. . | Roy D 4s 45 ww... IM R&G 4838, L&SF 1n 48 A ‘50 StL&SF 43588, S1L&SF pl5s B '50 St LS W 13t 4389, W cn 4332, W 6s'52 SanA& AP dn il 10 Pau 78'40 ret. a0 Paulo 85 '26 Saxon P W 63 eab A Lov 6345, erbs-Cr-S17s'62. ell Un Ofl 58 '47. iell Un O11 B hinyetsu 68 '52. TO6%s 38, . Sinclair Ol1 6% #'38 ncO7scv A ‘37, cPLbs 42 ssons 63 ‘36 ou Hell T&T%s 41 W Bell T 53 A '54. ou Pac col 4349, Sou Pac ref 4s'55. Sou P 44869 ww. ou Pac 4%s 81 ou Ry gn 4s '56 ou Ry 5394 ou Ry 6556 ou Ry 6143 '56. 80 60 611 1008 881 83% 102 561 96% |5t01 N ¥ 43861, \“z\le'\ 5 Taiwan E P 5’\‘]’7‘ Tenn EI P 63 A 41. Texas Corp 5s "¢4.. | Toho E1 Pw 63732, Toho El Pw 78 '55. Tokio 58 ‘52 Tokto 5%s Tokio El Lt 63'53. Un Pac 1st 4347, Un Pac 43 ‘63 Unit Dre cv 58 '53. Utd King 53483 U 'S Rub 1st 5347 Unit SS Cop 6s '37. UnSt W 63%s A4T, Uruguay 63 60 Utah P & L 53 '44., Utll Pw 65 '59 ww., Util Pow 6% 847, Vanadium St 55°41. Vienna 67 52.. Va Ry 1st58°62... Va Ry & Pw bs ‘34, Wabash 1st 5339, Wabash 2d 5539, Wabash 5345 ‘75 Warn Br Pic 68'39. Warner Sug 7s '41. Wst Sh 15t 48 2341, West E1dDb 55 44.. West Md 4s '52.... West Pac 53 46 West Unton 535 - 974 54 147 29 oo ~e 94 50% 4214 | 6412 €5 641y 66 £61k 803 6l wiOore Tokohama 63 '61... — . NEW YORK ECONOMIST SCORES SHORT SELLING | | Spec Dispatch to The Star. to President Richard Whitney’s recent defense of short selling on the New York Stock Exchange, A. Vere Shaw, an economist, has written “The Case Against Short Selling,” takes issue with the claims of the exchange official. He differentiates be- tween sound and unsound short selling ments against the latter. Unsound short selling, he says, ob- structs the operation oz supply and de- mand. It involves something akin to conspiracy or breach of contract on the part of both the corporation and the shareholder. It involves non-disclosure of essential facts by the seller and creates risks, while there is no e dence that it possesses virtues to com- pensate for its cost to bona fide stock- holders, This type of short selling should be eliminated by the exchange .or by the public, the writer declates, . | 6913 | 98y, | 725 | NEW YORK, February 6.—In reply | in which he| and brings out several strong argu-| True, more banks closed than in any other year, but still we have a bank for every 6,173 people. That is more banks per 1,000 population than we .. | had in 1890, when we had 1 bank for cvery 9,808 people | It seems quite possible that one bank {for every 10,000 people is enough to | give adequate banking service today, particularly since banks are now equip- ped to handle more business than in 1890. Banks Handle More Depositors. | We have better roads, which have -y, | already taken thousands of people away their smaller local communities larger centers for trading and | from |to the | banking. We have larger banks and better transportation in the cities where 1 bank can care for more than 100,000 de- positors. If our banking system had not been well organized it could not have so nobly withstood the failure in 1931 of the largest number of businesses in any , the magazine asserts he loss of confidence among de- sitors was greater than at any other cur history. The result was a withdrawal of bank deposits over a period of months and an aston- ishing increase in the hoarding of money. In spite of all this, the year closed with nearly 20,000 banks (19,923) oper- |ating approximately 22,000 banking offices | Only about 2 per cent cf total bank resources were tied up in closings. The expected recovery of these temporarily frozen deposits amounts to $1,326,000.- 000. The expected recovery frcm business failures amounts to only 000. This is due to the fact overy to depositors in banks is n reco to creditors of SSes, Si the magazine. 88.4 Per Cent Average Recovery. It is estimated that business bank- ruptcies are returning only about 5 per . whereas bank w.sings are even- tually liquidating 88.4 pei wem. TEIS estimate is based upon figures supplied in the 1931 annual report of the con troller of the currency in which 1073 nationa! bz tabulated as having been comp! quidated in the past 5 vers. Eighty-four of these were d 10 Oper.cent or more. The age recovery was 88.4 per cent The realization that many banks had to close because of unwarranted with- Is made by depositors caused lo- ees to be formed to get the of depositors. _ This the recpening of 182 cal comn co-operation brought about banks. In mi agreemer, its credi their balances time the bank was closed for a pi sutficiently long to enable the bank to loans. re of 182 very favorably with only reopened in 1930. he strength of our banking r emphasized by comparil x‘umb r of new banks organized in lflunl and 1931. The n 158 for the fir and 275 for the pa yes zazine Teports In addition to this, many banks im- proved their position by merging or otherwise combining more than one in- stitution. This process resulted in the elimination 733 organizations. This, | of course, brings about cperating econo- mies as well as strengthened personnel. ROOSEVELT TRIP STIRS MEMORIES OF FATHER Elder as Son Crosses State on ases, the depesitors signed draw the depos reopened banks 62 North Dakotans Recall “Teddy"” Way to Philippines. ted Press. Dak., February 6—To tans came recollections a rough riding Theodore sevel, who nearly a half century was a cowpuncher on its Tanges. hzy wore spurred by the cross- State trip of Theodore Roosevelt, jr., en Toute to the Philippines to become Gov- ernor General. Theodore, jr. was only ¢ lad when | his father ‘'sold his ranch holdings in | the Bad Lands, near Medora, but, he sald here before leaving the State yes- terday. he hopl‘\ to return some day | for a leisurely time in the area the late President knew as one teeming with | buffalo. He told of the tug North Dakota has on the Roosevelts and of his father's pleasure in later years as he recounted cxperiences in riding with cowboys, liv ing their life as they cared for his 3,000 head of cattle “My father alw Dakota because understood him them,” he said. EVERYMAN’S INVESTMENTS BY 1t is easy to give advice on invest- se days ments, but to many of us in thes the advice is worthless because we have | no money to invest. In fact it is all some of us can do to k2ep the money we have already invested. If we consult the quotations for securities on the | financial page we can be persuaded we | have not succezded in keeping even | that There is one think, however, which we can and must do in justice to ourselves and to those dependent upon us and that is to make any sacrifice necessary to keeping up our life insurance. Throughout the entire depression, a d pression in many respects unequaled in the history of the country, the great life insurance companies have maintained their deserved reputation for financial impregnability. Policyholders who needed funds have always b2en able to | negotiate loans on their life insurance when they could not secure them an where else. As the wave of unemplo; | ment mounted and as wage reductions multiplied, the demands on the insur- ance companies increased, but they were always met. | Now it is often necessary to borrow | in this manner, but it is a privilege that |ought not to be abused. Generally | speaking it ought to be the last resort :mnd always it ought to be the first obli- gation cleared up when circumstances permit. To take any other course is un- fair to the beneficiary the life insurance was originally designed to protect. Meanwhile, whatever other economies have to be practiced, the premium on the insurance policy must be paid. Probably there are people who carry too much life insurance, but they are very rare. Most of us carry too little and none of us can in these times afford to permit a policy to lapse if there is any way of keeping it in forco. It is one investment never regrcited and cne that does not depreciat> in market price., (Copyright, 18324 MINOT, er North Dak ¥s said he liked North the people out here and he understood GEORGE T. HUGHES, |