Evening Star Newspaper, March 13, 1932, Page 59

News of Markets Pages 1 to 4 Part 6—12 Pages “BABY BOND" SALES EXCEED §1,000, IN FIFTH DISTRICT Federal Reserve Bank of Richmond Reports on Prog- ress of Campaign. PURCHASERS TO OBTAIN NEW ISSUES ON TUESDAY Bankers Note Inoreased Inquiries for Securities During the Last Few Days. BY EDWARD C. STONE. Applications for more than $1,000,000 worth of the new U. 8. Government 2 per cent “baby bonds” have been re- ceived by the Federal Reserve Bank of Richmond, it was announced in the Virginia Capital yesterday. The new bonds will be available next Tuesday, the issue being dated March 15 and paying interest from that date. Application blanks have been placed ‘with all the banks in Virginia and with all the chambers of commerce, the re- lded. This drive to bring idle money back into eirculation has been the chief sub- #ect of conversation among Washing- ton bankers during the week. They have been taking applications in in- creasing amounts in the Kut few days and their orders are reflected in the total requests for the bonds already Teceived at Richmond, as all the orders for the fifth Federal Reserve district are being handled through the Reserve Bank. Figures reported to the District Bankers' Association from the individ- ual banks have revealed much concern in the drive. Interest in the campaign has increased steadily. Not only has money been brought into the banks for investment in the so-called “baby bonds,” but revived. buying has been shown in other sound investments which return larger yields. The sav- ings departments of the banks have also profited by many new deposits. Reports Please D. C. Bankers. ‘The total amount of money placed in the new bonds indicates to bankers that has not been practiced here as extensively as many had sup- g:‘ned. Bankers know of many cases, | it the feeling prevails that the total amount is not very large. Attention is called to the fact that money taken from banks to meet home expenses by persons out of work, does not come under the head of hoarded funds. It is also stated that a good many Washing- ton le have sent money to help relatives in other nla‘cea. who were in dire meed because of closed . ‘These funds have been kept in very active circulation. District Bankers' Association is a marked improvement in confidence. ‘more are expected by the time the bonds actually begin pay- ing interest. The purchases already | noted will make possible the extension of over 3500000 new credit in the| Capital. Ghiselli Takes New Position. Frank E. Ghiselli, former vice presi- dent of the Merchants Bank & Trust Co. and later of the Pederal-American National Bank & Trust Co., at the Fifteenth and H street branch, has be- come affiliated with Robert C. Jones & Co, investment bankers with offices in the Shoreham Building, according to announcement made yesterday. Mr. Ghiselli is widely known in the finan- cial circles of Washington, having been engaged in the banking business for over 30 years. He started his banking career with the West End National Bank and when that bank was consolidated with the Citizens National Bank, he re- mained with the joint institution. Later he helped to orgamize the Com- mercial National Bank, remaining in its employ for 17 years as an officer. In 1923 he became identified with the Merchants Bank & Trust Co. and in 1925 he was promoted to vice presi- dent and director, and was chairman of the advisory board of the Twentieth street and Pennsylvania avenue branch. Mr. Ghiselli is a thirty-second-de- gree Mason, treasurer of National Lodge, No. 12, F. A. A. M., and treas- | urer of Almas Temple Shrine, A. A. O. N. M. S. He is also a member of the Elks, Washington Beard of Trade, the Racquet Club, Cosmopolitan Club and the Kenwood Golf & Country Club. Two transactions in Potomac Elec- tric Power 6s were the most impor- tant deals on the Washington Stock Exchange yesterday, both $1,000 bonds selling at 105% Washington Gas Light bonds. series B, 65, appeared on the board at 100%. The only other sale for the day was in Capital Traction stock, 10 shares chang- ing hands at 19, up half a point from the last sale. The stock closed with the week with 181, bid, offered at 20 American Telephone & Telegraph has becn added to the list of issues now quoted ex dividend, the others being Mergenihaler Linotype and Peoples Drug Stores preferred. The exchange notified of the 2 per cent dividend just declared by the on Trust Co. and the 7'» per cent erly dividend voted the United States Savings Bank. At yesterday's session the unlisted issues were called off, but no changes made in the quotations. As the playing season approaches, Washington Base Ball stock stands at 62 bid and 82 asked. Bankers Push Dinner Plans. Announcements of the regular Spring meeting and preconvention dinner of The District Bankers' Association have been sent to all member banks b Lanier P. McLachlen, president of Mc- Lachlen Banking Corporation, who is chairman of the committee in charge of the occasion. The program will contain, beside the usual reports and business to be trans- acted, announcement of the many fea- tures of interest being arranged for the 14th annual convention, several promi- nent guest speakers and an unusually attractive entertainment. The dinner will be held on April 12 FINANCIAL AND CLASSIFIED he Sunday Star WASHINGTON, .D. C, In New BANK OFFICIAL JOINS IN- VESTMENT FIRM. FRANK E. GHISELLI, Former vice president of the Federal- American National Bank & Trust Co., who is now with Robert C. Jones & Co. For several years he was vice president of the Merchants Bank & Trust Co. and was active in organization of the Com- mercial National. —Harris-Ewing Photo INCREASE IN STEEL OPERATIONS NOTED Average Daily Tonnage Out- put Is Gradually Work- ing Higher. PITTSBURGH, March 12—Steel production is gradually working its way upward. Comparing average tonnage output per working day there was 12 per cent increase from December to January and 4 per cent further increase for February. March may be counted on to show & higher rate still, as thus far there is a slight gain over the February rate, and heavier production is expected toward the close of the month from automobile trade and other influences. ‘The increases are much smaller than those that have occu;red at thhllwh:‘u in years, regarded as season i~ L‘l’mp.n. but that is in line with steel trade expectations. It was thought that with such a very conservative irit everywhere present buyers all ZMIJII line would make commit- ments less early than usual, the influ- ence of weather being slow to be felt. meumu?‘ tnd:':h chief ?‘; puhn-l ment lowing ite of October was supposed to be poorest month, with prom- o in production. Instead, November was still lighter, and while December and January did better, the preliminary re- port for February shows a decrease again. The steel trade still expects much more automobile production in the next few months than in the last five, which showed a monthly average of only 104,000 cars and trucks, United States and Canada. ‘The Steel Corporation’s unfilled ton- nage decreased by 102,521 tons last month, and this looks unfavorable, but history shows that February unfilled tonnage changes have not foreshad- owed the course of affairs. In 1923 the year ended very poorly. In 1924 there was a moderate increase and steel production had a terrific decrease to July. In 1926 there was a large loss, but the year proved to be a very thmufhm ise continuous and large increases ot February showed a large increase, but | good one. As far as time has itted it to be 50, the steel price stal tion move- ment inaugurated over a month ago is 2 success. The slightly advanced prices are being universally quoted on new business, and where orders have lately been accepted at lower figures this has been against old commitments or quo- tations. There have been actual sales at the advanced prices and there ap- pears to be no actual cuttifg at the present time. (Copyright, 1932.) BACK-TO-LAND MOVE |EXPANDING IN CANADA Many Settlers From United States Tre Taking Up Land in North- western Provinces. Special Dispatch to The Star. TORONTO, March 12.—In spite of the low prices of farm produce, a back- to-the-land movement is proceeding successfully in Canada. Most of the 15,185 settlers from the United States last year and of the 25632 in the previous year went on farms in the Northwest. In addition to these new- comers from south of the line. 20,352 Canadians crossed the border to their home country last year, while 31,608 returned in 1930, the majority of the French-Canadian repatriates being set- tled on the land During the last 14 months approxi- mately 44.000 persons have been taken from industrial centers, where employ- ment was declining, and have been placed on farms. In Manitoba this movement of the unemployed to farms has been part of the government re- lief scheme. In Quebec the provin- cial government is making a plan to repurchase farm lands sold for mu- nicipal taxes and to place on them families who are anxious to return from urban centers to the country. In Nova Scotia plans are on foot for the establishment of unemployed coal miners on the land. In the Far North mining and pros- pecting are so active that the trans- port companies on Great Bear River are enjoying’ an even busier season than in the days of a flourishing fur trade. (Copyright, 1932.) LOCAL BANK CLEARINGS at the Columbia Country Club. During the afternoon a golf tournament open 1o those attending will be held and the prizes awarded during the evening, The annual Spring meeting draws expected that the coming conclave of the Hot Springs, Va, this year may dra & larger crowd than usual, MAKE RECORD FOR U. S. Washington bank clearings totaled $29,516,000 last week against $20,467,- 000 in the previous week, which was an year . This was the only increase Shown in_the United States. although some of the other cities their decreases materially. AS TRADERS AWAT SPRING TRADE GAIN Market Has Acted Well Dur- ing Week in Face of Divi- dend Changes. COMMODITY PRICES FAIL TO SHOW GENERAL GAIN Increases in Bank Deposits and Gold Stocks Strengthen U. 8. Credit Situation. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, March 12.—The stock market exhibits the indecision of spec- ulators and investors cver the future effect on prices of stagnant business and probable dividend changes. Con- siderable resistance has been met with this week. Failure to penetrate the earlier high level of the year has had a bearish interpretation. On the whole, however, stocks have shown less con- cern over unfavorable developments than might have been expected. While there is no public interest heing shown on the buying side, there is equal in- difference to movements suggesting an- other reaction. Liquidation on the part of individuals and institutions appears | to have run its course. It is quite sig- nificant that, in most cases, the an- nouncement of dividends passed or re- duced causes little unsettlement in stocks affected. In numerous instances it has been followed by an advance in prices. Dividend Changes. Dividend changes this week have been small in number, but important in character. The shrinkage in the earnings of the comrunication com- panies has caused the Western Union Co. to make a second cut in its rate. This is now one-half the payment in 1931. The International Telephone & Telegraph Co. has entirely abandoned profit sharing with stockholders. Its income has been cut into by the ex- change conditions in foreign countries in which a considerable portion of its earnings originate. This currency sit- uation is also given as the main reason for the passing of the dividends on American & Foreign Power preferred stocks, though, in both instances, the policy of the two managements three and four years ago of buying up prop- erties in foreign countries subject to Vviolent political and economic up- heavals and imposing a heavy load of debt on them may have been as much of a contribut; factor as any other. direc: i devel::on‘ &n vh:mg' o e Tnsull lssues 1 case 1n Other important dividend « es this week were Tllinof those of the Continental is Bank of Chicago, whose rate was reduced from $4 to $3 a share: the Manhattan Co. of New York, which halved its rate; the Gold Dust Corpo- Iation, National Steel, Niles-Bement- Pond, International Carriers, Central Public Service and Interstate Depart- ment Stores. It is estimated that the dividend changes of the past year rep- resent a shrinkage in American in- comes at an annual rate of $1,250,- | 000,000 Buyers Slow to Act. The approach of the Spring season brings little evidence of an overflow of the confidence in securities into the field of industry. In fact, the demands of buyers are being delayed longer than normal. The contrast in the iron and steel trade with one and two years 8g0 is striking. Production now is 27 Per cent of capacity, or half that in early March, 1931, and compares with between 70 ‘and 80 per cent in the same month of 1930. The unfilled ton- nage of the United States Steel Corpo- ration on March 1 was 42 per cent less than in March, 1930, and 50 per cent smaller than in the Spring of 1922 when business was just begin- ning to recover from the post-war panic. Electric power output for the en- tire country shows a reduction of 8.7 per cent, with the losses in the indus- trial sections steadily becoming greater. There has been some improvement in car loadings recently, owing to the cold weather. In spite of the heavy decrease in each year since 1929, the total loadings for “the March gquarter will be well below those in the sim- ilar period of 1931. This reflects the stagnation in the heavy industries and the shrinkage in the votumes of whole- sale and retail trade, A few commodities ened, with a notable advance this week in packing house products, Grain and cotton have also heen steadier. More resistance has been indicated in metals and rubber, but sugar has fallen to & new low. The inability of commod- ities to sympathize with securities is due, in part, to the different technical conditions surrounding these two groups as well as to the attitude of banking interests toward them. Whereas there has been a drying up of new issues of securities in the past two and one-half years, until today the markets for them are quite bare of supplies, the output of those com- moditles now selling much under the cost of production has not been ad- justed to world stocks or to the re- stricted consuming ability of peoples living in a period of depression. So far. the reluctant loosening up of banking credit has been in favor of securities rather than of commodities. This fact explains the frequency of the complaints to Washington that banks are not doing their part in bringing about business recovery. Monetary Situation Improves. If it were not that fundamental con- ditions here and abroad were steadily gaining in force, one might be con- cerned over the outlook. However, there is a distinct change in sentiment even where this is not influenced by the daily stock and bonq quotations. While commercial failures have been increasing this month, those of banks are small in number. The decrease in country bank deposits, which con- tinued from October into February to an elarming extent. has been checked. Some increases are being reported. Currency is coming back smf; the banks slowly, but in sufficient amounts each week fo permit institutions to reduce their borrowings. The monetary gold stock of the country rose this week for the first time since the end of December.™This signifies that the out- flow of the 'yellow metal, which com- a cl in the banking act, is An evet ts the constructive devel ‘here, was the reduction in the Bank of Bng- have strength- SUNDAY MORNING, MARCH 13, 1932 T Doy KNOW, GOSH 1 HOPE THAT'S POISON LAND AHOY! IVY AND NOT ye yaD —= . AN OLNE BRANCH DONT You? ALL THIS I waNt 2 COPPER PRODUCERS TOREDUCE OUTPUT Indusfry Hopes for Price Sta- bilization Through Cut in Production. BY BRADLEY W. TRENT. Special Dispatch to The Ste~ NEW YORK, March 12.—Domestic copper interests today hailed the new curtailment agreement, announced by representatives of the world’s leading copper companies, as offering a pro- gram which should stabilize the in- dustry for some time. By many it was regarded as marking a definite turn for the better. A a result of conferences here last- ing more than a month, the leading copper producers have agreed, effec- tive April 1, to hold to an operating rate of 20 per cent of capacity, com-| pared with 26', per cent at present. This will decrease the monthly world output of copper from 85,000 tons to between 65,000 and 70,000 tons. It is expected to bring production below the present rate of consump- tion, the net result of which would be a reduction of surplus ‘stocks now burdening the industry. At the same time the foreign and domestic copper interests agreed that foreign sales would continue to be made through Copper Exporters, Inc., the co-operative selling organization, which recently has been somewhat dis- rupted by dissension over marketing arrangements. ‘The copper market, weak for several days, firmed up on the announcement. In the last six months the red metal has been selling at the lowest prices ever recorded, prices being below pro- duction costs of most companies. Cutting production to 20 per cent of capacity is expected to Tesult in the closing of most American mines in the Summer months. Producers said it would be better to close down en-|pare by-iaws, which will be presented | tirely for about six months in the year and operate at about 40 per cent of capacity during the other six months. Several American companies followed this plan last Summer. Approximately 30,000 tons of the world’s monthly production of 85,000 is accounted for by companies that were not represented at the confer- ences here. Some of these are small independent units and others are in Japan and Canada. Canadian pro- ducers that have a large gold content in their ore would be under a hard- ship, it was pointed out, if they re- duced output drastically. (Copyright, 1932.) INDUSTRIES RATED IN GOOD POSITION ‘The following industries, because of their excellent performance to date in resisting the effects of the depression, and their outlook for continued stabil- ity of sales and profits during the early future, are listed by the Standard Sta- tistics Co. in a current survey as “most promising”’: Chain stores, cigarettes, dairy prod- ucts, electric and gas utilities, package foods, specialty bakeries and telephones. land rate of rediscount to 4 per cent. This is the lowest since last Summer, when an advance was compelled by the crisis in Germany. An even more sensational incident was the rise in sterling to a level 50 cents in the pound above the low point reached some months ago. Though this was deprecated by English bankers and was short-lived, it was another expres- sion of the faith that exists in the ability of Great Britain to recover her banking prestige and, eventually, to restore sterling to a level permitting her to trade on equal terms with the rest of the world. The chancellor of the exchequer this week expressed sat- isfaction over the banking measures | adopted by this country which, he be- lieves, “will be beneficial not only to the United States, but to the whole At the same time he stated Bank Suspensions Hit Lowest Mark In Past 4 Years Speclal Dispatch to The Star. NEW YORK, March 12—Bank sus- pensions ebbed nearer the absolute vanishing point in the weék just passed, only $990,000 being tied up in 11 gmall institutions which were reported as closing their doors by the American Banker. The rate of closings since March 1 is the lowest since 1928, which in turn was the lowest in 10 years. one of and the rest small State institutions. Only three national banks have been permitted to suspend since February 19. Reopenings last week were four, bringing the number of resumptions thus far this year to 71. [HOME CREDIT PLANS | MADE AT ANNAPOLIS | Association Is Formed to Promote Construction and Repair of Residences. Special Dispatch to The Star. ANNAPOLIS, Md., March 12—With an aim to provide more liberal credit to persons who would build homes or busi- nesss establishments here, 2 new organ- ization, the Annapolis Contractors’ As- sociation, was formed here last night. Under the plans local citizens will be enabled to erect homes at & lower cost, vet with the same high workmanship in addition to having a more liberal | credit system than in the past. Clarence M. Bassford, local con- tractor, has been named chairman of the association and Morris Meade its secretary. In addition a committee of | five, composed of Mr. Bassford, Fred W. | Carlson, Samuel B. Dove, O. C. Macey | and Harry E. Bean, was named to pre- at the next meeting. In addition to making possible bufld- | Ing of new property on a time-payment basis, the contractors aim to have the | same privilege extended to remodeling | or modernization of existing property. The association decided upon an adver- rtmnz campaign to place the matter be- fore the public. Representatives of several building and loan associations were present at last night's meeting and discussed the financial side of the new organization. JOHN HANCOCK LIFE MAKES GOOD SHOWING The annual statement for the year | | 1831, published by the John Hancock Life Insurance Co. of Boston, shows | that the net cost to policyholders was reduced, insurance in force was in- | creased to $3,612,850,000, a special re- serve of $5, 000 was established to | meet any extraordinary requirements, and the surplus was increased to over | $43,000,000. The company reports al- | most $10,000,000 insurance carried by Washington residents. NEW YORK BANK STOCKS NEW YORK, March 12 (Special).— Bank and trust shares rallied slightly near the end of today's dull session. Banker's Trust at 63'; was up 1, Brooklyn Trust, 250, off 5: Central Hanover, 153, off 1; Chase National, 41, up %: Chemical, 354, up '; National City, 51% up 3,: Commercial, 161, off | 1: Continental, 1634, up ’s; Empire, 25, up 1 ; Corn Exchange, 6412, up 1; First National, 1825, up 5; Guaranty, 317, up 5; Irving, 201, up %; Manufacturers Trust, 3214, off s; New York Trust, 92, Y. ‘Title Trust, 5612, off 2. Man- hattan at 34!; was urichanged. DIVIDEND DECLARED. National M" cllndnmlu‘r 3 March 30 to holders :fmm 21. The last previous payment was 50 cents 8 and 1. INVESTMENT BOND MARKET SELLS OFF Junior Railroad List Records Sharpest Losses After Recent Gains. Special Dispatch to The Star. NEW YORK, March 12—After ad- vancing about 112 average points—the latest phase of an advance that has carried bonds a full 10 points above Their December lows—the investment market experienced an reac- tion as the week ecnded. The declin were chiefly in the junior railroad list, where it has become increasingly evi- dent that some situations exist that even the powerful Reconstruction Finance Corporation may have difficulty | in setting right. The law providing for the Finance Corporation outlines quite definitely that loans made to carriers or other companies must be backed by suitable collateral, and it is doubtful in some cases that the collateral is available. Wall Street has become convinced after a full month of an advancing bond market that the administration in ‘Washington will not allow any further railroad defaults, but it is not easy to Ssee just how this can be done in some cases. U. 8. Yssues at New High. ‘There is nothing in business activity, carloadings and other factors bearing on the carriers’ position to indicate that any turn for the better in gross in- comes is in sight. However, that is merely & somber spot in a picture that is otherwise brighter. United States Government bonds now stand at new high levels for the recovery and the ag- gregate value of bonds, as measured by Standard Statistics’ index, 1s some $7.- 000,000,000 above the total at the 1931 low. With miost Liberties and Treasuries selling around a 3.75 per cent yield basis it was apparent that the Treasury correctly gauged the market when it announced its March financing in the form of $900,000,000 in 3'; per cent 7-month and 33; per cent 12-month bills. These were oversubscribed nearly four times and were selling at s to % point premium. The municipal and equipment trust market responded to the strength in high-grade bonds. New York City is- sues were quoted around a 5%, per cent basis, against 6 per cent only a few weeks ago. Some State bonds showed substantial improvement, Pennsylvania Railroad equipment were bid for around a 5.25 per cent basis and other equip- ments improved. ‘The imminence of the German elec- tions caused quite a flurry in German bonds. Emphatic declarations by con- servative candidates that Germany would honor and pay every private obli- gation, no matter what the outcome of the reparations conference, served to send Young plan 5's, Dawes Repara- tions 7s and other German bonds sharp- ly higher. Later in the week Presi- dent Von Hindenburg's expressed fears of a radical victory caused some profit taking and much of the earlier advance was lost. Gains in Sterling. ‘The sharp rise of sterling after the Bank of England had ceased selling it was a spectacular feature of the money market. But it declined rapidly after the reduction of the Bank of England rate and it became apparent from the speech of Chancellor Neville Chamber- iain that no present attempt to run sterling back up to its old par was contemplated. ~ British 525 dropped about two points under the top they established earlier in the week. ‘The Sino-Japanese War ceased to be 2 market factor and Japanese bonds were steady. Australian issues con- tinued their improvement, based on re- vision of Australia’s emergency tariff. Canadian exchenge jumped to a new high for the recovery in sympathy with the rise of sterling and because Can- ada's favorable trade balance is still Classified Ads Pages 5 to 11 AUTO TRADE LOOKS FORTURNING POINT INNEW CAR SALES Latter Half of This Month Ex- pected to Mark Seasonal Pick-Up. LATEST MODELS READY FOR DEALER DELIVERIES Competition in Low-Priced Field Promises to Be Keen Through- out Spring. BY EDWARD W. MORRISON. Special Dispatch to The Star. DETROIT, March 12.—The second half of March promises to bring the turning point in the automotive year, With the movement of new Ford models into dealers’ hands underway at last, the attitude of impatience which has been evident among the other manufacturers of low-priced cars may be expected to disappear. Each manu- facturer will know, finally, the cards that his competitors hold, and the scramble for buyers' signatures will start. New Models. It is revealing no secret to say that the first two months of 1932 were a disappointment to the industry. The gauge af sales is to be found in the ac- tlon of cars that sell below $1,000. When Ford was compelled from week to week to delay the appearance of his new eight and four, he cast a huge question mark across the automotive screen. The buying wave that was expected to inau- gurate 1932 was suspended, as if in midair. The delays that Ford encountered were not caused by engineering mis- takes or inferior workmanship. They were simply the result of Henry Ford's personal zeal in testing every part that goes into a new model. When he has performed test after test, the car is Teady for production—not before. But Ford competitors found no solace in the carefulness that was exhibited at Dearborn. They heard prospective buy- ers tell salesmen, “We want to wait for a Jook at the new Ford.” Other buyers indicated they wanted to compare val- ues after the new Ford had been placed on the market and readjustments in prices, if any, had been made. Still other buyers were canny enough to say they thought used-car allowances might be larger after the battle in the low- priced fleld waxed hot along in the Spring or Summer. Small wonder that competitors became impatient to see the new Fords. The appearance of the new models from Dearborn may be greeted with huzzahs from all the Ford dealers, but ! there will be almost as many cheers from Chevrolet, Plymouth and Willys- Overland dealers. The question mark will have disappeared. Of course, none of the Ford com- petitors is without a program. Each is prepared to meet the new eight in his own way. In at least one organiza. tion there is a disposition to watch closely the early public reaction to the eight before mapping a final program. Trade Rumors. Nevertheless, one may learn in De- troit almost any day that: (1) Chev- rolet will counter with an eight of its own; (2) Chevrolet will stand pat on its six; (3) Chevrolet will resume manufacturing a four, maintdining a four and a six to meet Ford competi- tion of a four and an eight. And any| one may take his choice. | A new Plymouth will be on the mar-/ ket early in April. It will be a four, of course, but it will be dolled up so much that its old friends will hardly know it. The wheelbase will be lengthened from 110 to 112 inches. The engine will be increased from 56 to 65 horse- power. The body will be streamlined. The radiator will carry a heavy nickel shell, with the vanes in the artificial front sloping well toward the base. Free-wheeling “floating power” will from the present me . 'The new line will consist of seven body types. Meanwhile a newcomer in the low- priced field is cutting a swath that has compelled other manufacturers to rub their eyes. This is the Rockne, spon- sored by Studebaker. The company shipped its 5.000th car this week and now boasts of a dealer organization of 1,100. Plants in Detroit and South Bend are now in operation, with De- troit production 200 units a day. Pro- duction in both plants is expected to reach 6,000 units for March. (Copyright, 1932.) — 'ORDERS FOR LUMBER SHOW FURTHER GAIN Association Reports New Business for Week Ended March 5§ Exceeded Mill Output. Due to continued low production, lumber orders for the week ended March 5 again exceeded production, the excess approximating 44 per cent, it |is indicated in telegraphic reports to {the National Lumber Manufacturers’ Association from regional associations covering the operations of 709 leading hardwood and softwood mills. Produc- tion of these mills amounted to 101,- 709,000 feet. Shipments also exceeded production by about 39 per cent. A week earlier reports covering 707 mills gave orders 45 per cent above and shipments 49 per cent above a cut of 100,750,000 feet. Comparison by iden- tical mill figures for the latest week with the equivalent period a year ago shows—for softwoods, 449 mills, pro- duction 51 per cent less, shipments 36 per cent less and orders 37 per cent less than for the week in 1931; for hardwoods, 188 mills, production 47 per cent less, shipments 34 per cent less and orders 46 per cent less than the volume for the week last year. Lumber orders reported for the week ended March 5, 1932, by 508 softwood mills totaled 132,962,000 feet, or 47 per cent above the production of the same mills. Shipments as reported for the same week were 125,484,000 feet, or 39 per cent above production. Pro- duction was 90,201,000 feet. Reports from 222 hardwood mills give new business as 13,668,000 feet, or 19 per cent above production. Ship- ments as reported for the same week were 15,870,000 feet, or 38 per cent f worke bef Septembe: afi‘;‘!.fl: -| o ers before T, , & least. BRITAIN HAS HOPES OF EARLY REVIVAL IN TRADE POSITION Recent Improvement i Owt« look Creates Optimism Among Business Men. DEPRESSION IN FRANCE IS APPARENTLY DEEPER Italy and Germany Are Still Beel ing Effects of Unemployment and Slow Markets. Special Dispatch to The Star. NEW YORK, March 12.—Cable and radio dispatches to The Business Week give the following survey of business abroad for the week ending today: Great Britain.—Business is strongly optimistic. Markets are active and in- vestor interest is sustained. In no oth- er country in Europe is there stronger conviction that the “tide has turned, nor has any other country equal justi- flcation for this conviction. Unem- ployment in February declined. Stocks continued to climb.” New issues con- tinued to be oversubscribed. Foreign exchange restrictions are gone. Re- turns from the British Industries Fair were very good. France.—In striking contrast to the domestic indicators in Britain which offer legitimate backing to the recent burst of financial activity, French in- ternal conditions remain unfavorable, Unemployment rose further last week. Iron and steel production is now 13 ber cent below the December totals, 37 per cent below figures for this time last year. Not a single index of busi- ness indicates yet that the industrial depression has been checked. French Pursue Briand Ideal. After several weeks of increasing ac- tivity, the Bourse reacted early in the week, but recovered later. Quotations were up, and sterling and dollar ex- change were slightly below Tuesday's high. Briand’s sudden has had no material effect, at home or abroad. France for some time has his Mnlyl' i eal of political rapprochement. Italy—Though Italy is included in most of the mentions of countries likely to be aided by pending “behind the scenes” developments in l‘r\huln;u mlou:cl'eak is still oug] ne is steady. Stocks are firm notwithstanding a veritable epi- demie of dividend cuts, and the bond market Activity prominent, and del ’Adamello their dividends recently, it cast wide- spread gloom over the market. Now Fiat has announced a 10 per cent wage cut, though pledging at the same time that there will be no further R lmpem:::fl:m’:s dnu.; the silk in- lustry are contemp! wage cuts, but none has been mm‘c’afi. & two factors are out~ standingly hopeful. Unemployment at the end of February showed no increase; stood at slightly over 6,000,000. The rediscount rate of the Reichsbank has been reduced, making it easier for busi- ness to secure necessary financing. German Bonds Depressed. Though Germany is distinctly aided by the renewal for three months of the B. I S. credit to the Reichsbank. the necessity of meeting the required 10 per cent amortization drained the Reltgs- bank of foreign exchange at a time when it could ill afford it. In the face of numerous more favorable p abroad the government is resolved, - ever, to do its utmost to maintain s favorable balance of trade, even if means a ruthless throttling of the al- ready closely guarded sales of foreign currency to importers. Bond prices have been depressed again because of rumors, officially de- nied, that the government contemplates & fresh statutory reduction of interest Tates on securities beyond those decreed g‘xz the last emergency decree in Decem- BRITISH POUND EASIER Slight Recession Follows Recent Rapid Advance in Price, BY LEONARD J. REID, Associate Editor of the London Economlst. BY Special Cable to The Star. LONDON. March 12.—The big issue during the past week was whether ster- ling, swept upward on Monday and Tuesday by an .influx of funds fully comparable to that of the worst day of the flow in reverse direction last September, would become the sport of an uncontrollable speculation. This question tem, ly was answered by the end of the week by the ability of the authorities to control the situation, thanks partly to the additional redue- tion in the bank rate and partly to profit-taking by speculators. The market since has been easier around $3.65, but it remains to be seen whether buukpurchnes are not resumed next week. As to the present situation, though responsible opinion is indisposed fto negative Chancellor Neville Chamber- lain’s announcement respecting ulti- mate reversion to the gold basis as the only obvious course, opinion in banking circles is unanimous that early stabilization' is quite impossible since the uncertainty as to the future of gold and sterling prices affords no solid grounds for estimating a proper permanent exchange level which would enable Great Britain to balance her foreign payments. Meanwhile, there is unanimity also in considering trade and employment figures to be no economic justification for an advance in the pound above, saj, a level representing a 25 per cent depreciation. (Copyright. 1932.) BETTER DEMAND SEEN FOR CORN PRODUCTS ‘While current consumption of refined corn products is running about 10 per cent behind last year’s figures and about 22 per cent under the record total of 1929, there are indications, according to the Corn Industries h Founda- tion, that stocks of these products in consumers’ hands are at the lowest levels since the depression began. “Practically all current orders re- above production. . Production was 11,508,000 feet. SILVER QUOTATIONS. ceived by corn refiners for ‘starches, sirups, sugar and dextrins s NEW YORK, March 12 (#).—Bar sil- first ver steadier and cents. % higher st 20% has