Evening Star Newspaper, March 6, 1932, Page 61

News of Markets Pages 1 to 4 FINANCIAL AND CLAS: 54 Bl | | V) he Sunday Star Part 6—12 Pages Classified Ads Pages 5 to 12 WASHINGTON, n.: @ SUNDAY MORNING, MARCII 6. 1932. D. C. BANKERS PUSH PLANS FOR ANNUAL GATHERING IN JUNE Chairman Woodward An- nounces Committee for Meeting at Hot Springs. W. R. & E. BONDS LEAD TRADING ON EXCHANGE Yocal Banks Ready to Aid in Ef- forts to End Hoarding of Funds. BY EDWARD C. STONE. Claude H. Woodward, chairman of the General Committee, arranging for the annual convention of the District Bankers’ Association, to be held at Hot Springs, Va., in June, yesterday an- nounced the complete membership of this committee, every bank in the city having accepted an invitation to be represented. The president and one other prominent officer in each bank have agreed to serve. This is taken to indicate the im- portant place that the four-day as- sembly has taken in the yearly pro- gram of association activities and par- ticularly during the present period of | rcadjustment and reconstruction. Mem- bers of the General Convention Com- mittee, aside from Chairman Wood- ward and Edward L. Hillyer, vice chair- man, include: Corcoran Thom and Howard Moran, American Security & Trust Co.; Mau- rice Otterback and W. L. Koontz, Ana- costia Ban! Raymond L. Schreiner ana Barton Perry, Bank of Bright- wood; Maurice D. Rosenberg, Joseph Sanders and John M. Riordon, Bank of Commerce & Savings; John C. ‘Walker and J. Ezra Troth, Chevy Chase Savings; Frank J. Stryker and Robert H Lacey, Columbia National; Wade H. Cooper and James H. Baden, Com- mercial National; J T. Exnicios and Charles E. McCoy, Departmental; Joshua Evans, jr., and Barnum L. Col- ton, District National. John C. Yost and S. Wilson Earn- | thaw, East Washington Savings; John Pocle and Wilmer J. Waller, Federal. American National Bank & Trust Co. John B. Cochran and Samuel M. Thrift, Franklin Nagional; W. W. Spaid and Karl W. Corby, W. B. Hibbs & Co.; Fra J. Kauimann, jr., and Leonard H. Hoyle, International Exchange Bank; Rolfe E. Bolling and M. F. Calnan, Liberty National; Floyd E. Davis and James A Soper, Lincoln National; enier P. McLachlen and - Archibald McLachlen, McLachlen Banking Corpo- ration; Bertram Chesterman, -Morris Plan Bank; Emmett C. Davisoa and Robert T. Highfield, Mount Vernon Savings. ¥ C. H. Pope and C. D Ratcliffe, Mun- sey Trust Co.; George L. Starkey and Edmund H. Graham, National Bank of | Washington; Henry H., McKee and H. C. Stewart, National Capital Bank; George W. White and C. F. Jacobsen, National Metropolitan; William D. Hoo. ver and E. Percival Wilson, National Savings & Trust Co.; John A. Eckert and E. 8. Burgess, North Capitol Sav- ings; L. P. Steuart and W. Reginald Lewis, Northeast Savings; A. F. Jorss and Robert S. Stunz, Park Savings; Henry W. Offutt and B. Agee Bowles, Potomac Savings. Robert V. Fleming and Avon M. Nevius, Riggs National Bank; Victor B. Deyber and William M. Hannay, Sec: ond National Bank; Francis G. Addi- son, jr., and Julius I. Peyser, Security Savings & Commercial Bank; John D. Howard and John M. De Marco, Sev. enth Strcet Savings; Edward J. Stell- wagen and Edson B. Olds, Union Trust Harry G. Meem and Charles R. Grant, Washington Loan & Trust Co. Eara Gould and A. Scott Offutt, Washing- ton Mechanics Savings; Thomas E. Jarrell and R. P. Gibson, Washington | Bavings Bank. Trading on D. C. Exchange. Washington Railway & Electric 4s ! featured Saturday trading on the Wash- ington Stock Exchange. The market opened with $500 selling at 83, fol- Jowed by a $1,000 sale at 83, another $1.000 transaction at 83' and a final sale in *he $1,000 denomination at the same price. In the stock department the first rales were in Mergenthaler Linotype, in which four small ot sales were regis- tered at 42. Capital Traction stock fig- ured in several small lot sales at 1813, the same price which has prevailed for scme little time for this issue. Capital Traction holders are doing very little | trading at present, the majority await- ing the outcome of the merger move now before Congress. The market closed with 25 shares of | Carpel Corporation selling at 10%.. It was the first sale in this issue in many weeks, the food stock selling consider- ably lower than a year ago. As usual| on Saturday, quotations in the unlisted | department were checked over, prac- jeally no changes in quotations being | noted in the past week. Anti-Hoarding Bonds Described. Secretary Mills has issued a most complete circular describing the 2 per | cent United States Treasury certificates aired to banish hoarding of money. He says, in part The certificates will be dated March 15, 1932, and will bear interest from that date at the rate of 2 per cent per | annum, payable semi-annually. The certificates will be payable on March 15, 1933, and will be redeemable before maturity, at the option of the holders, | at par and accrued interest, on 60 days' advance notice by the holders. The | principal and interest of the certificates will be payable in United States gold coin of the present standard value. Bearer certificates will be issued in denominations of $50, $100 and $500, | with two interest coupons attached pay- able September 15, 1932, and March 15, 19033, respectively. The certificates shall be exempt, both as to principal and interest, from all taxation (except estate and inheritance taxes) now or hereafter imposed by the United States, any State, or any of the | possessions of the United States, or by any local taxing authority, and will be accepted at par in payment of income and profits taxes payable at the ma- turity of the certificates. Applications will be received at the Federal Reserve banks, as fiscal agents of the United States. Banking institutions generally, including all the Washington banks, will handle applications for subscribers. Unemployment Awaits Turn. In its latest review of conditions in the Fifth Federal Reserve District, the Reserve Bank of Richmond announces that the employment situation showed $500,000,000 GOLD INCREASE ESTIMATED FOR YEAR 1931 BY BRADLEY W. TRENT. | Special Dispatch to The Star. NEW YORK, March 5—While the | world for some time has been talking of a possible shortage of gold, statistical evidence available tends to prove that the visible supply of the vellow metal | is increasing and that the gain last | year was about the largest ever known to have taken place in a calendar period | of 12 months i Roughly. the increase is estimated at approximately $500.000,000. What a gain of those dimensions means to the civilized world may be gleaned from the fact that the average annual in- crease in visible supply of gold during the previous five years is estimated to have been but little more than one- half that total. The substantial addition to the world visible supply of gold last year was due to two factors. One was an increase in the world production of new gold The other was the disgorg- ing of gold from hoards of several na- tions traditionally known as absorbers of the metal over a period of many years. World production of gold in 1931 is estimated to have been from $430,000,- 000 to $435,000,000. That is but mod- erately smaller than the high record of $469,000,000 registered in 1915. The low record for recent years was estab- Heavier Production and Release of Hoarded Supplies Have Swelled Visible Supply of Metal. lished in 1922, when the production | totaled only $318.000.000. The gain in annual rate of production in the last decade has been $112,000,000, if we use | the lower estimated figures for 1931, and $117,000,000 if the higher figures are taken. Several gold-producing countries last year yielded more of the precious metal than ‘they ever produced in any single vear before. Notable in the list are Africa and Canada. Canada not only established a new high record for pro- | duction last year, but also supplanted the United States as the second largest gold mining country of the world. The Federal Reserve Board has compiled statistics on the output of the Rand Gold Field of South Africa, and makes the total $244,141,000. Other fields, such as Southern Rhodesia, the Belgian Congo . and the Gold Coast of West Africa, mined as much gold last year as in 1930, if not more. Although the United States was forced down to third rank as a gold ccuntry, production of this country also registered a substantial increase of $2,755,300. The Bureau of Mines es- timates the total at $48,907,100, against $46,151,800 the previous year. The present outlook is that gold pro- | duction this year will surpass that of last vear. It is predicted that both the Transvaal and Canada will register new high records. (Copyright, 1932.) STEELAND COPPER QUTLOOKINPROVES Better Buying Expected in Trade Circles—Prices Are Holding Steady. By the Associated Press. | NEW YORK, March 5.—Sentiment in the steel trade was rather more cheer- ful this week, owing more to prospects for improvement, especially in automo- | bile demand, than because of any change in the market. Ingot produc- tion continued at 26 per cent of capaci- | ty. The trade is hopeful, however, that | releases of specifications of a large mo- tor car manufacturer will lead to im-! proved demand from other quarters. | Moderate interest was noted from rail- | roads and awards of structural shapes | increased moderately to the best weck- ly volume of the year. Prices held steady. Better interest in pig iron was reflected by an estimated 6 per cent increase in production in February and that market continues steady. Continued fair export buying of cop- per steadied the market and domestic prices were advanced by custom smel- ters 34c to 6c for electrolytic delivered ! in the Connecticut Valley. Home con- | sumers, however, remained out of the | market, owing to uncertainty over the | cutcome of producers’ curtailment con- | ferences and faflure of demand for fin- ished products to expand. GAS USERS INCREASE IN LAST TEN YEARS Gain of 40 Per Cent Noted Be- tween 1921 and 1931 in Association Report. By the Associated Press. NEW YORK, March 5.—Users of nat- ural and manufactured gas in the United States increased by 40 per cent between January 1, 1921, and January 1, 1931, & survéy by the American Gas Association discloses. Statistics issued today by the asso- ciation show a gain in customers served by the industry from 11,452,000 to 16,009,000. Users of manufactured gas increased from 8,837,000 to 10,471,000, while natural gas users increased from 2,615,000 to 5,524,000. New York leads in the number of gas customers, with a total of 2,915,000, or | a little more than 18 per cent of the | total in the United States. Next in rank come Pennsylvania, Illinois, Cali- fornia and Ohio. These States have 53 per cent of all the gas customers in the country. The next five States, in order, are Massachusetts, New Jersey, Michigan, Texas and Missouri. It is estimated that approximately 1.200 companies are distributing gas in the United States. This figure does not include numerous companies which transport natural gas and Wwholesale their entire produce to distributing com- panies Ten years ago. it is stated, natural gas was distributed in 19 States (and insignificant quantities in 5 additional States). Natural gas now is consumed in 34 States. Over 90 per cent of gas users in West Virginia. Kentucky, Mis- sissippl. Arkansas, Colorado, Montana, Ohio, Utah. Wyoming and California are being rerved with natural gas. RAILROAD BUYS BUS LINE IN VIRGINIA The Federal Court in Richmond has authorized Norfolk Southern Bus Cor- poration (Norfolk Southern Railroad subsidiary) to take over the Virginia Beach Bus Line and the Coastal Coach Lines, now in receivership. The order was made on recommenda- tion of the receiver of the Virginia Beach and Coastal Coach Lines. Court authorized the issuance of $12,000 re- ceivers' certificates to take care of cer- tain liens against the property of the iwo companics. New Bond Offerings. NEW YORK, March 5 (&) —Bond offerings_by Missouri and California account for a considerable part of the total of $9.485788 in new State and municipal financing scheduled for next week, says the Daily Bond Buyer. The past week's total was $15,037,864 and the weekly average for the year to date is $16,811,968. E Woxl;érs Recalled to Jobs. NEW YORK. March 5 (# —The New York Central Railroad Co. has recalled no improvement in the first six weeks of 1932, but unusually mild weather lessened the hardships of those persons “e';!: are out of work. 'The Wiriter tem- persture has been 80 moderate that (Continued on Fourth Page.) known today. In addition to the 1,200 added to the force at West Albany and 1.500 at the Collinwood shops, the road has added 465 more men to its Beech Grove, Ind, shops and 565 at West Albany. 5 g 3 additional men to its shops, it becam-! Heads Committee BOOKER TO ACT FOR RAC- QUET CLUB BONDHOLDERS. A Protective Committee to represent the 7 per cent first mortgage bonds of the Racquet Club has been formed by the Fact-Finding Committee of five re- cently elected by the bondholders. The Protective Committee is made up of E. Booker of Y. E. Booker & Co., chairman; W. W. Chiswell, president of the People's Life Insurance Co., and J. B. Carter, local attorney. A bondholders’ protective agreement is now being prepared and will be mail- ed to the bondholders in the near future. The American Security & Trust Co. will act as depositary for the bonds. The original Fact-Finding Committee of five will continue to function, acting in an advisory capacity with the Pro- tective Committee. The Fact-Finding Committee consists of W. C. Sullivan, chairman; W. W. Chiswell, J. B. Carter, Allen McCullen and Y. E. Booker, sec- retary. Owners of Racquet Club bonds are requested to communicate at once with the Protective Committee. (Qdd-Lot Trad;rs | Hit by Sales Tax And Broker Tolls | By the Associated Press. NEW YORK, March 5—The small Y of Wi Street's speculative com- munity, known as odd-lot traders, have found a new bugaboo in the form of higher sales taxes now levied on stock transacti While . they pa | paid by ons. percentage of tax increase precisely the same as that rge investors, the smaller buyers have been hit harder because odd-lot brokerage houses have increased their commission as a result. |, _A small decline in buying by small | traders is reported by odd-lot brokers |in the current week, although pur- chases by large buyers have shown a slight gain. This change which has be- | come noticeable in the first week that | the tax increase has been effective is | regarded as a possible indication of greater reluctance to buy and sell be- cause of the higher margin of expense Which the trader must hurdle in order to make a profit . | JInvestors are not greatly affected. The tax increase does not mean much 1o a man who buys his stocks for the long pull.” Tt is the small in-and-out trader, brokers say, who finds his higher operating charges troublesome. INVESTMENT TRUST VOTES 2 DIVIDENDS | In acdition to the regular quarterly | cash dividend of 25 cents per share, | the board of directors of Incorporated ‘In\'cswr; has declared a stock dividend of 2!, per cent. Both these dividends are payable April 15 to stockholders as | of record March 22. | ,Sales of Incorporated Investors have shown a distinct upturn since the first of the year. During the last half of February over 40,000 shares were sold through dealers located in the princi- | pal cities throughout the country, &c- | cording to reports from the Wi ton office. Unfavorable Dividend Changes. NEW YORK, March 5 (#).—There were 57 unfavorable dividend changes in the past week, compared with 54 in the preceding week, according to & com- pilation by the Standard Statistics Co. | Favorable changes numbered 9, against '8 the week before. 'SECURITY MARKETS /SHOW STRONG TONE INWEEK'S TRADING Some Commodities Also Dis- play Firmer Trend and - Rising Prices. U. S. BANKING SITUATION IS GREATLY IMPROVED Business Statistics Continue Mixed, However, and Dividend Reduc- tions Become Numerous. BY CHARLES F. SPEARE, Special Dispatch to The Star. NEW YORK, March 5—The most important incident in a week that has | witnessed higher markets for securities and some commodities, and during which there has been an added growth in confidence, was the announcement that the British treasury would repay before the due date $150,000,000 of the $200,000,000 banking credit cbtained :n this country lase August. This reflected not only the surprising recovery in British finances within six months of suspension of gold payments, but was another exhibition of the tra- ditional respect of London bankers for their obligations and was the more im- pressive since it came at a time when there is the too frequent attempt to de- fault or to extend maturing commit- ments. It adds to the banking prestige of England and places that country in a more favorable position from which to negotiate in subsequent credit and political arrangements. It is a part of | the process, now gaining force, to dis- entangle the complicated maze of in- ternational money affairs. Along with it is evidence of an easier credit condition in the falling rates for bank discounts and for bils. Great Britain has also reduced the | credits secured from France. Her fiscal situation is steadily improving. When the government deficit in this country as well as Prance and in Germany is increasing, there is the suggestion that England may come to the end of her official year showing a surplus. Inas- much as the banking crisis in the United States developed its acute phase after England suspended gold payments, it is of great significance that she is rapidly putting her house in order and is again preparing to play her part as an international banker and trader. / Bank Situation Strengthened. Comparative peace now reigns in the American banking world in contrast with the chaos of the period between September and the early part of Feb- |ruary. - Bank suspensions are rare. This is not only because of timely as- sistance from the Reconstruction Finance Corporation, which has taken over most of the work of the National Credit Corporation, but is due to the greater confidence on the part of bank depositors. There is no evidence yet | of a return of hoarded money in any | substantial sums. This may be quick- ened by the sale of so-called “baby” bonds 1n spite of the lack of incentive that this type of issue affords. While the Reconstruction Corporation has ! already accomplished much in reliev- ing acute banking troubles, there is beginning to be an indication of a freer offering of banking credit and of an acceptance by banks of the new privileges afforded by the week-old Glass-Steagall bill. The emergency loans, which the Re- | construction Finance Corporation is i making to the railroads reveal, in the applications for them, the precarious | condition of most of the carriers, whose | |current cash accounts have dwindled | to the point where they could not meet all of their vouchers for labor and ma- terials, and, without replenishment, | must have compelled them to default on serial payments of equipment trust notes. It is apparent that this agency will be forced to use its funds to the legal authority and that the conditions with *‘which it is dealing are infinitely worse than those which earlier faced the War Finance Corporation. Tt is understood that the most pressing sit- uation in the public utility field, and one that has given grave concern re- cently, has been relieved by the Dawes organization. Restoration of Confidence. ‘With the protecting arm of the Gov- ! ernment thrown around institutions and | corporations that could no longer help themselves, it may be taken for granted that there will be no further disturb- | ing _outbreaks in financial or business ‘clrcle& Just how far confidence will be permanently established by this, un- less there is proof of industrial pro- gress here and of political reconcilia- tions abroad, remains to be seen. The improvement so far is sentimental. The tide is still running out. The latest Bradstreet’s index of wholesale com- modity prices reveals it on March 1 at the lowest since August, 1899, and 46 per cent below January, 1928. The| general index, however, has been al- | most stationary for several weeks, with a decline in metals balanced by an ad- vance in other commodities. Iron and steel production has so far made no response to the proposed Ford program. Car loadings waver between small losses one week and moderate gains the next. Some roads report a slight increase in traffic last month over January due to local conditions. The volume of electric production has been decreasing. The power and light industry, which pointed upward for nearly a year and a half after general business turned in 1929, is now feeling the cumulative effect of industrial stag- nation. Building construction suggests comparatively little expansion on the eve of the season when development begins, though there is reported to be much repairing and replenishing as a result of the lower wage scare and a more advantageous basis on which to purchase materials. Retail trade, ex- tremely poor in January and February, is somewhat better this month. In the past 10 days the national distributors ‘have noted a more responsive attitude (on the part of their regular patrons, | More Dividend Changes. These conditions have a sequel in additional changes in dividend rates. ‘The most significant this week was the reduction by the General Electric Co. tp a $1 a share basis from the level of $1.60 a share that had been paid on the present stock. Thus three of the outstanding industrial corporations of the country, General Electric, United States Steel and General Motors, have been compelled to make aradical cut in their profit-sharing policy and one that affects the incomes of tens of thousands of investors, Corporation dividends recently omitted include those on Johns-Msnville common, Utilities Power & Light common, Lehigh Valley Rallroad preferred, Department (Continued og, Third Page.) “BACK-TO-FARM" MOVEMENT AIDED BY LACK OF CITY JOBS Special Dispatch to The Star. KANSAS CITY, Mo, March 5—A new angle on the “back-to-the-farm” movement comes from the rural sec- tions. Ordinarily at this time of year the country districts have in motion a series of public sales, formerly the “vendue,” | of deposits that helped carry well into | when farmers put up at auction all | Spring. Now sales are exceedingly rare, | their implements and household goods | cXcept where pressure forces a change. | and prepare to leave the place. Scores ordinarily occur in every county, and professional auctioneers are kept busy “calling” the sales. This year, with the exception of closing an estate or an execution by & creditor, the sales are rare. ‘The explanation is that for many years it has been easy for the tenant or the landowner to get a job in town— he could work in a garage, drive an oil truck or secure other employment that he felt would give greater return than farming. Now he knows of no job. He finds that it is more satisfactory to stick to the farm, even though the re- turn in cash is meager—for it does give him a home and a living. So he is not selling off his chattels and the town- ward movement is halted. ; This year has also seen the definite | passing of the annual “settlement day,” March 1, when in earlier times rural banks were crowded with customers | who were transferring deeds to farms, making . settlements in notes or cash and the banks had a temporary swelling Such sales as have been made during the past six months are for the most part for not more than the assessed value for taxation, probably 25 per cent below the figures of two years ago. The rural banks continue to show a shrinkage in deposits, due to the need of funds for carrying on operations more than to hoarding. ‘Some relief will come when wheat held by produc- ers is marketed and as live stock fed during the Winter goes to market. How- ever, it is not likely that much better- ment in this direction will come ungi] a new crops is harvested. | _Spring work is far advanced, many | fields already being ready for plant- ing, with indications that seeding will be on the usual scale. (Copyright. 1932.) TRADING IN SILVER HITS YEAR’S RECORD Activity Shows Marked Increase on the New York Metal Exchange. Special Dispatch to The Star. NEW YORK, March 5—The largest volume of silver trading this year took place on the National Metal Exchange during the week just ended. Dealings were stimulated by the continuance of coinage purchases by Belgium and Ger- many, by rumors that the Indian gov- vernment might reduce the import duty of 13 cents an ounce now levied on silver, and by rumors of a large silver coinage issue in Mexico. India's silver reserves are fast being depleted, as the natives are exchanging their hoards of gold for the white metal. The treasury plans to issue 100,000,000 rupees of new paper currency this month. Meanwhile the silver rupee coins that are leaving the treasury are not being returned in even a fraction of normal volume. Unless unforeseen happenings intervene, the Indian gov- vernment will have to begin coinage of silver mot later than June. The treasury on February 20 held silver bul- | lion, which is already part of the re- serves for notes, amounting to 62,954,- 070 ounces. GREATER INDUSTRIAL ACTIVITY IS FORECAST During this month and next the general level of production will rise, states the United Business Service of | Uptrends in 51 out of 60 im- | Boston. portant industries are forecast. Those which should show the greatest in- creases in March are: Sugar refining, tobacco, shoe, \electric power, auto- mobile, tire, building, chemical, lum- ber, steel and coal. The market position of silver is one of accumulating strength. With a rapidly falling outturn from the mines, and a trend toward increased monetar: use, the outlook for the silver industr: is more promising today than it has been for half a century. GUARDIAN LIFE REPORTS SHARP INSURANCE GAIN A net increase in assets of more than 8 per cent and a gain in insurance in force equivalent to 20 per cent of the year’s paid production during 1931 are reported by the Guardian Life Insur- ance Co. of America in its seventy- second annual report made public yes- terday by C. D. Harrison, Washington agency manager. Surplus earnings exccedlni likewise, established a new high record which is attributed to an exceptionally favorable mortality experience as well as investment and managerial policies pursued by the company. Paid production for the year advanced the Guardian’s total of insurance in force to $516,201.459. A net increase in assets of $7,082,682 brought the year- end total to $91,819,758. ~ $4,000,000, | | economists and brokers, say a deadlock OUTPUT OF COTTON CLOTH INCREASES Atlanta District Reports Gain in Every One of Past Nine Months. Special Dispatch to The Star. | ATLANTA, March 5—The Atlanta Federal Reserve Bank reported today that for each of the past nine months production of cotton cloth by mills in the sixth district reporting to the Fed- eral Reserve Bank has been greater than in the same month a year earlier. Production by these mills in January | declined 11.8 per cent from December, | but was 19.0 per cent greater than a | year ago. Stocks also declined from | December, but other reported items in- | creased, including a gain of 41.3 per | cent in orders, and all reported items | show increases over January, 193}, ex- | cept the number of workers on pa | rolls of reporting mills. January figures reported by cotton yarn mills show declines in production, shipments and unfilled orders, but increases in stocks, orders and number of workers for the month, and production, shipments and orders were reported in larger volume than for January, 1931. U. S. RAILROADS SCORE FINE FUEL RECORDS Amid the generally disappointing figures recording the results of railway operation in 1931, one gleam of light | appears in the annual report of operating statistics just issued by t8e Interstate Commerce Commission, ac- | cording to the Railway Age. This arises from the fact that the 1931 unit consumption of railway fuel set the ninth consecutive annual record for in- creased efficiency in freight service and the eighth consecutive record in pas- senger service, “In | “when a comprehensive program to in- crease transportation efficiency was | adopted by the Association of Railway Executives. 161 pounds of fuel were re- quired in freight service to move 1,000 tons a distance of one mile. This figure was euccessfully reduced each year until in 1931 this same amount of work required the comsumption of only 119 pounds of coal, a decrease of 26 per cent. Likewise, the fuel con- sumed in moving a passenger-train car one mile, amounting to 18.1 pounds in 1923, was cut to 14.5 pounds in 1931, o reduction of 20 Per cent.” . Sugar Parley Handicapped. NEW YORK. March 5 (#).—Advices {rom Cuba to B. W. Dyer & Co., sugar is indicated between the Chadbourne |group and the Cuban Sugar Institute | faction. Indications at present are thai an unrestricted suj crop will be per- mitted unless Javan and European ad- herents of the Chadbourne plan make additional concessions to Cuba as re- gards production and export quotas, the Cuban re, assert. 1023," says the Railway Age,| INVESTMENT BOND - MARKET IMPROVES Recent Price Movement En- courages Belief That Re- covery Is Permanent. | Special Dispatch to The Star. NEW YORK, March 5—Bonds ag- | vanced steadily this week until they reached the average level last touched in early January. This meant that, disregarding two days on which the price level was unchanged, the invest- | ment market has improved for more than 15 consecutive sessions. This fact in itself might be construed as be because the farther the mar- ket a¢ ices the larger becomes the potential selling hanging over it as long acoounts gather profits. But the mar- ket has risen gradually and absorbed profit-taking as it went along. From any standpoint this is a highly desirable state of affairs. The market has improved without sacrificing its | technical position, and when one adds | to_this the long list of constructive de- velopments bearing on the market, it gives rise to the belief, now widely held in financial circles, that the invest- ment market has the bright road of | broad recovery right ahead of it. Probably the most important factor |affecting seasoned investment bonds has been the decline in the number of daily bank closings. The market has been relieved of much of the selling incidental to liquidating the affairs of banks, and, in addition, an organization has been set up under Federal sponsor- ships to inject some discrimination into the liquidation of closed bank portfolios. The basic factor behind the stronger banking outlook is the operations of the Reconstruction Pinance Corporation. The same influence has caused a broad improvement in railroad and other cor- poration bonds. Railroads have been granted loans already and others are to have them. Then the hand of Charles G. Dawes and his associates in the important work of rehabilitating industry was seen in the sudden recovery of some utility bonds Whose excessively low prices had drawn the market's atten- tion to at least two situations in this fleld that were causing concern. ‘With these factors in mind, it was easy to see why the week’s offerings of $40,506,000 in new bonds were so | easily distributed. As the week ended the air was filled with reports of syndi- cates forming to underwrite new bond offerings. United States Government bonds were again pushed up, the improvement from the December low averaging about 9 points. Besides the $750,000,000 that this rise added to the value of Treas- uries and Liberties outstanding. it im- proved prospects for the financing the Treasury will have to do soon to bridge the deficit and look after maturities. ‘The Sino-Japanese situation waned as a arket influence. Japanese bonds, in fact, moved slightly higher. In Eu- rope, the extension of the Reichsbank's credits in London and Paris contrasted with England’s repayment of $150,000,- 000 in New York and $65,000,000 in Paris on two $200,000,000 credits ar- ranged last year. It is believed the bet- ter outlook in England, France and the United States will have much to do with a satisfactory ending to the repa- rations conference arn;l'ned for June. 32.) FAR EAST INCREASES U. S. IRON PURCHASES By the Associated Press. American exports of iron and steel products to the Far East showed an increase during January, as compared with the same month last year. ‘While total shipments to all points were lower during the month, the Com- merce Department reports the Far East’s purchases amounted to 17,286 tons- in 1932, as compared with 14,600 gross tons in January of last year. Total exports during the month amount2d to 40,660 gross tons. The Far East led all other trade areas in point of tonnage, purchasing 42.5 per cen: of the total, as compared with 15.7 per cent in January last vear. Despite the rise in takings of the Far East, Cai ada, with a total of 10,129 tons, re- mained the chief individual market for this country. FOREIGN ECONOMIC PICTURE PRESENTS BRIGHTER ASPECTS Japanese Securities Strengthened by Prospect of Peace at Shanghai. BRITAIN'S INDUSTRIAL POSITION IS IMPROVED Paris and Berlin Reflect Changes for Better in European Financial Outlook. Special Dispatch to The Star. NEW YORK, March 5.—Cable and radio dispatches to the Business Week give the following survey of business abroad for the week ending today: Far East.—Sporadic talk of a truce at Shanghai and the ultimate ending of hostilities have reacted favorably on Japanese exchange and on bonds. The lack of any definite agreement, however, has precluded any lasting improvement. Though Shanghai shops reopened as soon as hoestilities moved from the im- mediate vicinity of the International Settlement, general trade is increasing- ly curtailed. It is estimated that 200,- 000 factcry workers have been thrown out of employment, and another 140,000 handicraft workers are temporarily em- ployed because of fighting in districts in which they worked. Only eight Chinese and one British textile mills are still operating. Yarn production is running at a scarce 10 per cent of y. The Shanghai Stock Ex- is expected to rcopen soon. The Japanese situation 1s economic- ally less favorable. Foreign trade in the la: 0 days in February continued to sho heavy adverse balance. Im- ports exceeded $20,000,000, mcre than one-third of which was cotton. Exports ran to only $12,500,000. Paris.—There are only the slightest indications of improvement in trade and industry. Wholesale prices reveal a slight Tise of 4 points in all products, and of 6 points in products particularly French. Some activity has been noted in metal semi-manufactures, and a few | textile factories (particularly wool) in |the North have increased the number of operatives. One of the ‘signs of the Itimes, and a measuring stick of busi- iness conditions in France, is afforded |by the decline of French government |Fevenues. In January receipts reached |the lowest point during the last 10 months. The yield from the sales tax, | perhaps the best available barometer of business conditions, is now 20 per cent below the return of a year ago. Since last November customs returns have shrunk rapidly. In January re- jceipts fell $20,000,000 below the es- timate and $76.000.000 below recei] in January, 1931. Total deficit for the year closing March 31 is estimated at $2§0,000,000, but these estimates exclude deferred obligations totaling several times this amount. London.—Financial and industrial Londzn brightened perceptibly this week, due to a number of developments. Sterling has been steady. Investment interest, which has lagged in recent weeks, is reviving. Returning confi- dence is bringing a brisk demand for gilt-edged securities. Industrial interest has focused on two developments. The British Indus- tries Fair is meeting with unusual suc- cess. The second, and far more significant development, was the establishing, on March 1, of Britain's 10 per cent general tariff. Britain's harbors presented wild . scenes as 400 vessels crowded into ma- jor ports to discharge cargoes before they were caught by the new tariffs. Jammed in the Tilbury district below London were 200 vessels, among them the President Harding, whicl had | raced across the Atlantic with a 3,364- ton general cargo. For several days Lloyds and other insurance brokers did a moderate business in insurance against failure to arrive ahead of the deadline. Not a few vessels, caught in unusually heavy Channel weather, failed to pass customs Before midnight February 29. Berlin.—Business, during -the - past week, has been digestimg the bank re- organization plan Wwith no sign of panic and no shifting of deposits. Nor has there been any . unfavorable de- velopment connected with the reopen- ing, on a very restricteq basis, of the Berlin Bourse. Stock trading was brisk the first afternoon, but ?fie govern- ment’s prohibition on the quotation of prices has prevented the return of nor- mal functioning, and this week trad- ing has dwindled to small proportions. Retailers in particular have been en- couraged by the announcement from | the price commissioner, Carl Goerdeler, that he considers he has completed his | duties. Unemployment figures for recent weeks seem to indicate that the peak was reached in mid-February; that it was no higher than was foreseen last Fall. The government is drawing small hope from this failure to exceed ex- pectations, however, since industrial jactivity is at such low levels, building is absolutely stagnant, and exports a: dwindling. The machine industry is working at barely 30 per cent of ca- pacity, electro-technical shops at 45 per cent of capacity, general engineer- ing industries at 31 per cent of ca- pacity. BRITISH STOCKS HIGHER. BY LEONARD J. REID, Associate Editor of the London Economist. Special Cable to The Star. LONDON, March 5—An incipient end-of-February upswing in confidence in the financial markets blazed forth this week into ebullient optimism, not- withstanding the unchanged Bank of England discount rate. The factors chiefly responsible for this were: First, the relieved Shanghai ten- slon; secondly, talk of big budget and tax reductions; thirdly, glowing ac- counts of the status of the “British In- dustries Fair” order books, and, fourth- ly and most important, the announce- ment of the Paris and New York re- payments on the British treasury cred- its, coupled with the abrogation of all foreign exchange restrictions. Responsible circles here feel similarly as does the American administration, standing ready to welcome a revival in gmndence. but the more balanced view that it would be desirable to dis- countenance a disturbing bull specula- tion' in sterling currency and securities, since the foregoing factors require qualification, first, the budget will still maintain the world's highest scale of taxes; secopdly, the “British Industries Fair” entHusiasm consists largely of tariff propaganda not reflected in any real signs of export expansion; thirdly, market optimism overlooks thc menace of a Central European breakdown, which Is now confronting the Financial Committee of the League of Nations, while, fourthly, the credit s do not represent a clear "W z (Copyright, 1932, ot X