Evening Star Newspaper, July 24, 1932, Page 45

.N ewé of Markets Pages 1 to 5 FINANCIAL AND CLASSIFIED he Sunday Star’ Classified Ads Pages 5 to 12 WASHINGTON, D. C., SUNDAY MORN JULY 24, 1932. Part 6—12 Pagil CHAIRMENOF A.1.B UNITS ARE NAMED BY CHAPTER CHIEF Norris Appoints Various Com- mittee Heads to Serve for Coming Year. VASS TO BE CHAIRMAN OF INSTITUTE ADVISORS Tiggs National Bank Official Was Prime Mover in Exranding Activ- ities Last Year. BY EDWARD C. STONE. Richard A Norris of the Lincoln Na- ident of Washington an Instit nportant step pter head and appointed the fol- lcwing committee chairmen to serve curing the 1g year Education—Robert H National B nance—PFrank M. Perley, American rity & Trust C Lacey. Colum- Dagenais, Riges fabel V. Royce, Washing- Loan & Trust Co. quet—James A. Soper, Lincoln s and Sense—A. E. Henze, W.| Arthur C. Doying, Wash- & Trust t Vo r H. Sanderson, Bank & and Debate—Aubrey l-American Bank & d Public Education— . Security Savings & Womer nittee—Mrs. Gertrude ¢, Liberty National e committee chairmen have \otable service for the insti- veral being former Messrs. Perley. v and Leith hs nd Mr. Leith has » national execu ca vear's president and | who is District to the agreed the work for 3 year aid more than any other cne per- ‘on in arranging for the Institute’s reatly enlarged quarters. Market Advance Causes Stir. Bond men in the local financial dis- trict are especially pleased over the ength now being displayed in the bond market. The advancs in stocks and the increase in trading volum? also brought joy to the brokerage houses and at least made a temporary ak in the “Summer lull” How _1’:!1" ard trend will b maintained. predict: it mav be pro- brief. The Alex- ite thinks e o L it will »d mot_without, accom- and not w t hope for future. The reparations question rassed from uncertaintv to agree- drawn its gold ond the strain has ess has been made in and both in the L A Ay jor cradit condifi * prices h ept vace with ~ descent of business to the depths thev kept pace when the ascent was the progress rapid. s been the same pressure to convert into cash that convert cash there was and credit s. For nearlv three vears 1as become dearer. And be- thet, while corporations and Als have fewer dollars. those A 1se of he purchase of everything for which ney exchanges than would have “n deemed possible a few years ago, he institute says g4 Heard in Financial Disf ©. A. Pierce & Co. now are accepting 1ds selling at 15 for margin accounts. etofore the minimum vrice for ~ds on m: 70. The move, firm ctates. s ectuated by the ling in_the bond the willingness of th> relaxed Mo . signed by ay in the local finan ye! Manv hanker: been opposed to the bill cn that it wou'd encroach upcn d. although ntended to nish loans 115 who can- t get money final o oiae iy Te. W. W. Spaid Chapter, fternoon, boin who has been a member of v for a rumber of yers and r winner of the same trophy. nson Press 'W YORK. July 23.—While the wce of trade between this country anada is hlv favorable to the States, intangible items tend to gcuare the account Tourist expenditures are pointed out 4n important factor in Canada’s financial condition. In this connection, Teliable estimates to the Commerce De- partment indicate something like $240,- 000000 was spent there by United States tourists in 1931, As against this amount. Canadians spent but $56.000,- 000 in this country. leaving an unfavor- able tourist balance of $184.000,000 against the United States. This amount was almost enough to cover the balance of United Staies merchandise during the same period. Lumber Production. Lumber production during the week enced July 16, as measured by reports to the National Lumber Manufacturers Association, amounted to 110,292,000 Tect, with orders and shipments about 4 per cent in excess of this figure. There | ich they have will go much further | d | completely under the shadow of the New Director CAPITAL TRACTION VACANCY FILLED. | S. PERCY THOMPSON, | Who has just been named to the street ! railway ccmpany’s board to take the | place left vacant by the death several| weeks ago of Edward J. Stellwagen. Mr. | Thompson is a prominent lumber dealer. ! BRITAIN'S BUSINESS ' WORLD CHEERED BY - LOANINTEREST GUT War Debt Conversion Will Save Large Sum for Em- pire’s Trsasury. ch to The Star. July 23—Cables and| wireless d s to the Business| | Week give the following survey of busi- | ness abroad for the week ending today: | London—Tre continuing successful | progress of converting the war loans to the lower interest-bearing basis is cheering British business. The tone | lon the stock market is good despite | |slight price set-backs this week as| | profit-taking continued. News from | Germany, too, took a little of the| | buoyancy out of bond buying, though | es are still well above the old pre-| usanne low | touched its cheapest| borrowing record last week when Treas ury bills sold, for three months. at an average discount of 105 6.84d per cent. compared with 17s 2.38d per cent the previous week. Coal Mining Curtailed. Activity in the coal mining regions| is being curtailed with resulting in-| creases in the number of unemployed. | The number of jobless at the end or“ June was 8,000 above the total at the | lend of the previous month. In most | | other lines of industry, however, there| {has been some improvement. = Ship-| | builders have received their first orders for_the year. The most discouraging element in the | | foreign trade outlock is the awkward| | situation which_has developed in the| | relations with Ireland. The squabble over l2nd annuities is dragging on. Lon- | don has levied a tariff or Irish imports: | astensibly to mzke up in the budget the sum which Dublin has refused to pay. Dublin, in turn, is planning re-| taliatory tariffs. And with the di | pute continuing. Germans are after the | Irish coal market, and are likely to get. | Welsh coal miners already are wor- | ried over the outcome. | Pari liament has wound up its | | Spring session and adjourned, but with- | out balancing the budget. In the face of a declining trade balance, higher in- come texes were voted. which will run from 12!, per cent on minimum in- comes of 10,000 francs to 35 per cent on the higher brackets. Stock ma: during the week firmed, with advances being registered | by rentes and reils generally. Rentes, in particular, were firm following the passage by the Chamber of bills d igned to help the tre: government's clearly to convert a considerable part of the internal debt along lines adopted by the | British. {_After a slight :ncrease in activi | May. ~ the metallurgical industry is | again depressed. this time by the de- | crease in military and naval orders re- sulting from budget economies. Auto- | mobile sales. on the other hand, are re- ! ported by the country's three largest | firms to be running ahead of actual | production. Th= slight improvement in i texti'es contintes, but there are no hopefu! reports from the coal areas | Unemplovment on July 9 was again | slightly up. | Berlin—Germany is in the throes of {2 serious political campaign, which is | strongly_curtailing business aggressive- I is two-thirds of | Special Dispa NEW YORK | ' n placed under a dictator and Berlin under martial law as a resuilt of the clashes between political factions. | Political Factor. | Business, which was somewhat cheered by the first reports of the Lausanne ce- ets had al- sion, is now cision, though stock ma Teady discounted the d coming elections (July 31). The placing | of Prussia under a dictatorship is likely { to revive the secessionist ta'k in South- ern Germa Stock prices ened, but bonds are more resistant. Industrial activity shows no signs of improving soon. June steel output fell | 28 per cent below the May level as do- | mestic business failed to develop and | large Soviet orders were completed. { The number of unemployed decline though seasonzl improvement is far be- low normal. Tariff Stops Imports. NEW YORK. July 23 (Special).— Protective duties levied by Congress | against oil. copper, coal and lumber and embodied in the emergency revenue act of June 21, 1932, have had a tempo- rary effect of increasing the supply of those commodities in this country, a | survey discloses, but have reduced im- | vorts sharply and in the case of copper have shut foreign products out entirely. | The effect on prices has been negligible. | Paper Production. NEW YORK. July 23 () —Most im- portant divisions of the paper industry « continue to operate below the level of 1931, having been adversely affected by reduced demand and unsatisfactory | prices, reports Standard Statistics Co. ‘The wrapping paper division is expected to make a reasonably favorable com- parison with last year, due to voluntary cuts in output by the three principal producers, L] | these are signs of the times. j suring feature is that in its broadest SECURITY MARKETS REFLECT IMPROVED BUSINESS OUTLOOK Price Advance During Weck Stimulated by Approval of Railroad Merger. COMMODITY FRICE GAIN IS ENCOURAGING FACTOR Wall Street in Hopeful Mood as to Early Settlement of World Economic Problems. BY GEORGE T. HUGH Special Dispatch to The Sta NEW YORK, July 23 —The passing of another week has deepered the con- viction that the business situation is very gradually undergoing a change for the better. 2 1t is no easier to give convincirg evi- dence of this change today than it was a week ago: on the surface all that is apparent is an altered attitude. It is not to be forgotten, however, that at this stage revived confidence must necessarily precede revived trade. The most important domestic hap- pening of the week was, of course, the approval by the Interstate Commerce Commission of the Eastern railway con- solidation plan. The markets responded robustly to the announcement, although the most casual reflection demonstrates |that no immediate benefit to the rail-| roads can be expected. The mere ap- proval of a consclidation program means nothing in the way of increased traf- fic or larger earnings. It does not touch the problem of motor vehicle or waterway competition. Beneficial & Sentiment. Then, too, there sre numberless de- tails to be arranged before the plan cen be put into effect and almost as many conflicting interests to be harmonized. It is unnecessary to dis- cuss the technical aspects of consolida- tion here, but merely to emphasize the fact that. despite the advances in both stocks and bonds which followed the announcement. there is much yet to do and that the progress so far made is of psychological value only. There were even those in Wall Street who echoed with approval the cynical comment of Commissioner Eastman in his dissenting opinion, to the effect that “the people of the country are either fighting to bar the wolf from the door or ihey are struggling inside the threshold to keep his fangs from their throats. They have liitle time or end on railroad consolida- To accept that view. would be as much a mis: ush to the conclusion that prosperity was to be restored because railway consolidation was at last in sight. The fact is that a beginning, and an important one, has been made. Tt does bring into relief the disposition on the part of the public authorities to co-operate with the railroads in solv- ing their most difficult problem, and that is an advance. Oils Join in Rise. If the better tone in securities had been confined to railway issues there would have been left little support for the claim that the markets had recos nized any change for the better in businecs ~ prospects. About all that could be said would be that it was rec- ized that the prices of railway bong nd stocks had reeched so low a level provement. However, the markets did not confine their approval to rail- way descriptions. In stocks and bonds the ¢jl group was as strong as the railroad Jist. And here there is sta- tistical proof of recovery vealed concretely in earning statements and in the petroleum price structure. It looks as if at last the oil producers and distributors had put their business , the same cannot be said about the public utilities. Steps taken toward control of dividends on common stocks now owned by holding compa ‘Wisconsin and in Alabama arc likely to be imitated in other States. Somewhat similar is the action of the New York Statr Commission in the Rochester Gas & Electric case. All The reas- aspect the course adopted by th> pub- lic authorities is in the interest not only of the consumer, but of the holder of utility s>curities. There have been abuses in this field and they must be remedied if further financing is to be accomplished successfully. It would have been better if the reform had come from the insice, but it had to come in any event. Outlock in Commodities. Outside the security fleld entirely, there is ground for encouragement this week in the scattered advances among commodities. For the most part these geins have been in the minor markets, with the great staples. wheat and cot- ton, laggards in. the movement. It is not for a financial writer in New York to discuss the outlook for either wheat or cotton. The authorities on the former are in Chicago and on the lat- ter in New Orleans. He can say, how- ever, without breaking any confidence, that speculaters in Wall Street. lean and hungry after so long a famine in the stock market, are casting longing eyes on what seems to them to be fair pastures elsewhere. Without disputing the statisticians who tell of the over- cupplies of both these commodities. but more especially of wheat, the Wall Streeters are persuading themselves that prices are at bargain levels and that they can be advanced with a little Jjudicious help. Should they be right in this theory and both or either of these markets rally, there would be an immediate sympathetic response in stocks. For months past the commodity market has reacted on the security market and vice versa. Fundamentally it is just as true as ever that we shall not emerge from this depression until there has been an upward movement in com- modities. The German Situation. There is another proof of the altered attitude on the part of the financial community which deserves mention. That is the way in which the drastic measures taken by the German govern- ment to regulate its internal affairs were received by the markets. There was a time Wwhen any sign of disorder on the other side, social. political or econcmic, unfavorably as pessible. It is not so today. The Street looks on the new regime in Prussia as & constructive development. It may not prove to be that, but until events show that the theory is wrong it will be believed that the Germans are working out their own problems to the advantage of them- selves and the rest of the world. No_well-defined opinion is prevalent (Continued on Second Page.) any change must be cn the side of | in | It is re-| was always interpreted as | GAINS IN INDUSTRY SHOWN BY SURVEY OF TRADE CENTERS Better Quotations on Farm Products Reflected in Quick- ening of Business. PLANT ACTIVITY SHOWS INCREASING TENDENCY Gradual Additicns to Pal Rolls Are Reported in Some Manufactur- ing Districts. As commodity prices stiffen, reports from all sections of the country indi- cate an improvement in business. Ac- cording to these reports, the outlook appears to be more cheerful than at any + time during the last three years. The following dispatches, covering a variety of industries, cite evidences of | the reported improvement: MINNEAPOLIS, Minn, July 23— Sharp increases in market prices of {hogs and beef cattle during the last two |months and the prospects of a fine grain crop in the Northwest, assuring cash incomes for farmers and ample supplies of live stock feed for next Fall and Winter, have improved the agricul- tural situation, reflected in a better feeling and a slight upturn in business activity in this city and throughout the | surrounding territory. | Several lines of industry in this and other larger Northwest centers are re- ported to have added workers and in- jcreased pay rolls this month. Grain | {traffic in’ the next six months is ex- | | pected to do much to improve the earn- {ings and financial position of these | rallroads and optimism is general in | transportation circles. | Activity in apparel and other textile | factories has held up relatively well this vear and their operators are planning to | | meet increased demand next Fall. Man: { ufacturers of all classes of farm ma- | chinery expect an active replacement | demand from farmers whose equipmerit | has become pretty well worn out, and are arranging increased préduction pro- grams. Mill Operations Expanded. | PROVIDENCE, R. L. July 23—Gen- | erally speaking, the present month has witnessed a moderate improvement in manufacturing activity, largely a sea- sonal development. Retail trade volume | remains unsatisfactory. although actual | | volume is making more favorable com- | | parisons with last year than dollar sales | total. | Woolen and worsted plants have been | expanding their operations subs tially. This is a seasonal development | ‘markmg the beginning of the Fall| | season. Jewelry plants show signs of | increased sctivity in the preparation of | Fall samples. Silk mills show scme signs of improvement. Cotton manu- acturing shows no marked change in operations, which are very slow, ex- cept in rayon divisions where activity has been fair for sbout three months. Knitting mills are reasonably active, but not excitedly so. Rubber manu- facturing is reasonably active, not a new development. Employment Gains. LOUISVILLE, Ky., July 23.—Among | heartening signs listed by the Louisville | Board of Trade in a series of Mid- summer _optimistic industrial notes {was a June cmployment increase ir seventy-two plants of 7.7 per cent over | th~ same menth last year. | The most substantial gains in em- | | ployment have ben made in the to- baceco factories, whore cigarette manu- facturing is booming. with two shifts working daily at most of the piants. | Indications for better tobacco prices | this Fall are going to help Kentucky farmers, as well as the manufacturers, the trade body reported. Among construction work about to begin in the city’s trade area is a $200.- 000 Army Hospital at Fort Knox, addi- | tional sewer projects in the city to cost | $1,000.000. a_new Evangelical Hospital | to cost $25,000, and $2.000,000 worth of | extra highway construction work in the State. Increased Hog Prices. DES MOINES, Towa, July 23—The| | value of Towa's hogs and cattle in- creased through higher prices $154,- { €00,000 from early June to mid July. | Although there has been some re- action in prices due to a l°t up in| pork consumption during the heat | wave, prices are again steadying and much of the increased value has been held. Farm experts are confident that the next move will be upward. Pay Rolls Larger. LOS_ANGELES, Calif., July 23— State Director of Finance Vandegrift announces that, in the States building construction, labor improvement in |June as compared with May in Los | Angeles County showed an increase ; |of 254 per cent in employment, 29.7 | per cent in pay roll and 3.5 per cent in per capita earnings. Seasonal activity in canning is help- ing to relieve the unemployment sit- {uation. Several rubber companies have re-employed 2 number of men and have stepped up the working hours. Coal Mines to Reopen. SCRANTON, Pa., July 23.—Through- fout the Lackawanna County section of {the anthracite field, coal companies | are placing mines and breakers in { readiness for an expected busy season starting the last two weeks of August. | During the remaining days of this |month an increased demand is ex- | pected as prices will advance 20 cents | a ton on August 1. Printing Business Improves. DALLAS, Tex., July 23.—With bank clearings here showing a gain of $3,000.000 in weekly flgures. new con- struction under way or definite proj- ected to cost about $400,000. the printing business reporting 50 per cent improvement over last year and the city tax payments exceeding 1931 fig- ures, business conditions here supply some basis for folk to consider chang- ing their views regarding the depression. In addition a building program to cost about $3,000,000 is under way at the University of Texas, Austin. Large Plane Order Placed. CLEVELAND, Ohio, July 23.—The Waco Aircraft Co. has begun making war planes for Brazil on official con- formation received for the building of 15 ships, the largest single order ever received by the local concern. The order totals $200,000 and five military ships will be delivered three weeks from today. All 15 will be shipped by boat from New York to Rio de Janeiro. The Brazilian order makes a total of 31 planes for which orders have been entered by the company this month. New Indusiry Established. SYRACUSE, July 23.—Establishment of a new industry in this city, which may mean construction of similar a | | TAKING A VACATION TO FORGET BUSINESS — MY, \'T5 QUIET OUT HERE/ HLMOST A9 DEAD L, A4 TH OFFICE! & £ v‘??/ 53 A v (_i Y] = IF\ CouLd JusT GET BUSINESS OLT OF MY MIND 50 | BOUGHT A THOUSAND SHARES AT 304 AND, ’AHD STAY OUT OF THIL (AMP! You BEARSY ¢05T ME F\FTY 7 THOVSAND DOLLARS . WHAT A PooL \T MUST HAVE TAKEN TO SHOVE A HiLL LP TS Haw! RECOVERY INBOND MARKET IS BROAD List Retraces Ground Lost During the Last Three Months. Special Dispatch to The Star. NEW YORK, July 23—The invest- ment market made more Progress up- ward this week than it has in any week ince early in January. In its rise from the low point of May 30 it has recov- | ered all the lost ground of the last three montt Th~ advance has been broad, ng in every depariment of the ket, foreign and domestic. Measured against the total market value of bends listed on the New York Stock Ex- change, the advance has reinstated market values to the amount of more than $2.500.000.000. ‘Toward the end of the week the im- provement gained impetus chiefly be- tak cause of the decision of the Interstate | Commerce Commission’s approval of the four-party merger pian for all Eastern railroads except the New England lines. Since this is exactly what the railroads | have wanted and have been working on the Natlon's stores con for years, it gave a strong push to carrier bonds. In some of them the advances were sensational, amounting to 10 to 15 points. In prime issues. where values had been driven below a level commensurate with intrinsic val- ues and money rates, the gains ranged from 2 to 4 points. Industrial and utility bonds also moved ahead. partly because of the im- provement in the rails and partly be- cause of numerous signs of a quicken- ing of the pulse of industry and rising commodity prices. At the same time the market ap- praised, by dint of bidding up United States Government bonds to new high prices for the movement, the home loan relief bill and its attendant provision legalizing Treasury long-term bonds as currency media The outlook for bonds is now con- sidered brighter than for many month: So much for the immediate outlook. Observers of more distant horizons in- | sist that world recovery will be retarded until America adjusts her war debts ac- counts with her former allies and pre- vails upon the nations of Europe to | curlul_l armaments and until a general lowering of tariffs is brought about. While many are watching events at the British Imperial Conference in Ottawa with fear lest an_intra-empire tariff agreement rob the United States of val- uable foreign trade, others welcome the possibilities of the Ottawa discussions. “hey believe that any co-operative agreement concluded there. no matter to whose detriment or betterment. will serve as the needed incentive for a world-wide movement to level tariff ibarriers and remove restrictions that paralyze international trade. (Copyright. 1932.) Plant Order Placed. NEW YORK, July 23 (#)—Alco Products, Inc.. a division of the Amer- | ican Locomotive Co. has received an | order from the Pure Oil Co. for a com- plete vapor recovery plant for the man- ufacture of gasoline from refinery | vapors, to be erected at Muskogee, OKla. | —_— Municipal Financing. NEW YORK, July 23 (#).—State and municipal financing will continue in small volume during the coming week. Issues scheduled for offering by the Daily Bond Buyer total only $6.931,149, t‘omlgnr!d with $6,966,064 in the past| plants elsewhere, has just been an- nounced by the Prosperity Co., manu- facturers of laundry machines for 22 years. The new division will handle a re- cently invented process for shrinking cloth. The capacity now is 250,000 yards a week, and can be stepped up to a million yards. The number of em- ployes is gradually being increased. (Cepyright, 1832. by North American News- PITIERt paber Alliance, 36, | ners’ Council of America. Commodity Price Advance Carried To Record Figure 7 the Associated Press NEW YORK, Jui | commodity prices outnumbered declines this week in Dun's list of wholesale commodity quotations. | The 33 advances recorded constitute | a record number of gains for the past thirty-five weeks with the exception of | last week. PO BUYING FOR FALL TRADE INCREASES Liberal Purchases Are Re- ported in New York Whole- sale District. W. TRENT. 2. —Advances in BY BRADLEY Special Dispatch to NEW YORK, Ju ly 23.--Buyers for rue to be at- tracted here in large v ries of trade events M >f them are interested in Fall merchan- dise, which they are purchasing lib- erally within certain price limits, but they are shopping carefully and re- maining here longer than they usually do at this season. As the doors of the New York Fur- niture Exchange opened for the usual Autumn merchandise display about 400 buyers from all parts of the country sought admittance, or about 5 per cent more than a year ago. Prices were un- changed from a ye sell from $45 to $75 were featured Quality Is Higher. Unchanged quotations but higher quality was stressed at the opening of new lines by wall paper manufacturers. The 25 and 35 cent ~olls, feature of last vear's displays, were outnumbered by new offerings ranging from 50 cents to $1.25 a roll retail, with bright colors | precominant. The wholesale show rooms of the china and glassware trade greeted many out of town buyers. Low-priced dinner sets, with floral designs and new pat- terns, along with the sguare dinner plates were stressed. The well dressed man this Fall, if the displays in the neckwear district today ave any criterion, will wear knitted and crocheted ties. Stripes. college and regimental colors and bright colors generally are predominant, the more prominent lines priced at $1.50 to $3 retail. Over at the fur auctions opening sales showed quotations had declined 10 to 20 per cent. Badger. Russian sable and skunk were unchanged, but | other lines were lower. Business leaders insist that mill cur- tailment and delayed purchasing in many lines will have the effect of rushing many products. This movement | will be given momentum because sup- plies of many kinds have been allowed to sink to subnormal levels. Cotton Goods Output. Cotton goods production for June is cited as an example. It is at its lowest level since 1928. Stocks have decreased 3.3 per cent, but unfilled orders are at a new low level, so mills in this line are changing operations slowly. Speeded operations of local and New England shoe factories also are partly explained by figures furnished to_ the New York Hide Exchange by the Tan- June shoe production showed more than a sea- sonal decline from May and was 26 p>r cent below the normal for last month. Then hides and skins were declining. but now they are pointing upward. {Copyrignt. 1932.) Hardware Better. NEW YORK, July 23 (#).—Warm weather has had a stimulating effect on demand for Summer hardware sup- ylles, according to dealers. Demand for low point. L] business hardware continues at a| | | on institutions which become members | | of the system.” says Herbert U. Nelson | | | | STABLIZEDREALTY VALUES ARE SEEN Home Loan Bank Bill -pected to Strengthen Credit Situation. BY F. A. RESCH. ‘Written for the Associated Press. CHICAGO, July 23—The real estate 1d has hopes that realty values will cfinitely stabilized” by credit pro- the recently passed home loan “The setting up of an independent reserve system for home financing in- stitutions is bound to have a tremend- ously steadying and stabilizing effect of the Estate of Chicago. executive secretary National Association of Real Boards. “By the leadership it will give it will influence non-member institutions in the home loan field. Supporting Influence. “Such a large advance in this one great sector of real estate financing is bound to have a supporting influence on all real estate credit supply, real estate investment and real estate develop- ment.” The projected home loan bank sys- tem, Mi. Nelson explains, “goes far to supply a gap whose existence has been felt for some time in our national redit structure. It is a large step toward separating home financing from short-term financing, and so a large step toward r ago, but suites to freeing home ownership from hazards and unnecessary costs.” But a warning probably should be given, he says, that it will take some time to set up the new machinery and | more time for direct action of the bill | to make itself felt in full. “Already, however, the country is put on notice that there will presently be available, for use through properly safe- guarded institutions, capital to the amount of $125,000.000 for the sound financing and refinancing of owned homes, and a further credit supply to | the extent of $500,000.000 which can be created when and if needed. “That assurance alone is bound to ! have a steadying effect.” New Credit. As new credit is released for home financing. Mr. Nelson says, there should be corresponding release of previously existing credit to other types of mort- gage financing “The new system.” he declares, “pro- vides a Federally supervised control of at least a large poriion of the capital supply for home financing. This should mean some leveling off of peaks and de- pressions both in capital supply Bnd“ in construction “Federal standardization of factors affecting loan safety should encourage a much better geographical distribu- tion of capital for home building and home buying. Coal Prices Advanced. NEW YORK, July 23 () —An ad- vance of 20 cents a ton effective Au- gust 1 on egg, stove and chestnut sizes of anthracite is announced by the Reading and Lehigh Valley Coal Cos. Pea coal was marked up 10 cents a ton. Further advances of 20 cents a ton on September 1 and October 1 are said to be planned by the companies. Federal Reserve Ratio. By the Associated Press. The ratin of total reserves of the 12 central banks to deposit and Federal Reserve note liabilities combined showed a slight recession during the week ended July 20 as compared with the previous period. In the table that fol- lows the ratio is given for comparable weeks, as reported by the reserve board: Week ended July 20. 56.2 per cent Previous week. 56.3 per cent Ex-! IEND OF DEPRESSION SHOWN BY COURSE OF SIMILAR CRISES Century and Half of Economic History Reveals Change Is Due. TRADE COLLAPSE OF 1873 RECALLED AS PARALLEL Slump in Industry of Late 80's Is Traceable, Like Present One, to War. BY DR. MAX WINKLER. | Special Dispatch to The Star. NEW YORK. July 23—On th, sis { of past experience covering more 'V";‘?a"‘: | @ century and a half, it appears with- |in reason to assert that the prevailing | economic crisis is in its last stages | Confirmed pessi refuse to take cognizance of t hey adhere to a destructive doctrine as stubbornly as they refused to abandon i the used to idon their optimistic | surely | were fooled | now Of the 1 25 depressions, o the 25 depressions, both major and character, Which have oc- in the past 150 years, only one, which occurred in' the' coutse.of the past century, lasted for five years Two continued for a four-year period ‘\\hA](‘ the majo v lasted two or, at | most. three years. Those which occurred {in the course of one single year were only minor disturbances or flurries. Of | the” depressions which occurred during | the twentieth century, two extended fo: {a three-year period: one lasted two i years; and one for about a year. Cri of 80s. The most severe of these depressions which bears perhaps the closest resem- | blance to the present crisis, is the o | which occurred in the late 80s of the | past century. A contemporary Amer- ican economist, writing of the crisis refers to it as “a most curious and, in many respects, unprec- edented disturbance and depression in trade, commerce and industry which manifesting itself in a marked degree in 1873, has prevailed with fluctuations of intensity. up to the present time." In other words, the crisis was traced { directly to the war between France and Prussia, as the present disturbance is traceable to the cataclysm of 1914- 918 § | Examining culti one reports concerning diffi- ] during the period referred finds that prices of nearly | staple commodities were abnormal |low; that values of precious metas were undergoing a radical change; that large amounts of capital were being destroyed through new inventions and discoveries, and that even larger sums were being consumed through exten- | sive reductions in the rate of interest Innd profits; that labor was discon- | tented; that the antagonism of na- tions was increasing; that industrial and commercial competition was greatly menaced: that the permanency of civilization itself was threatenec. and that the populace was demanding | “wise remedial legislation” for the eco- | nomic and social ills which existed. Curious though it may seem. condi- tions in Germany, victor in the war were more depressed than in vanquished France. The reasons for thi: ancmalous situation weer ob: war indemnity, that is. reparations which had becn exacted from France. resulted in an abundance of ready capital to such an extent that | banking institutions almost begged for | the oppo ty to place loans at rates las low per cent with manufac- turers, for the purpose of enlarging their establishments. The whole country was thus enabled { to proje: ge in all sorts of { indus ancial undertakings Thousands of new concerns were called linto existe In Prussia alone. 687 i joint stock companies were organ- ized within 18 months, with an aggre- tal of almost 2,000,000,000 sum unbelievably large for | those days | Industrial Growth. The growth of industrials was phe- nomenal. Hundreds of thousands of men and women abandoned agricul- tural pursuits and sought employment in trades. Prices rose; prosperity was most pronounced: profits were abnor- {mally large: weges were high, with Strikes everywhere for higher pay: im- { ports grew: credits expanded, and the Standard of living improved in propor- tion. Every phase of life was exag- gerated, including optimism. The situation had grown most un- natural and could not, therefore, con- tinue. Reaction and collapse ' came with great suddenness, but “without anticipation on the part of the multi- tude” An cconomist. describing the changed condition in Germany at that fime, informs us that “great fortunes rapidly melted away. industry became paralyzed and the whole of Germany Dassed st once from a_condition of Ereat prosperity to a depth of financial. industrial and commercial depression that had never been equaled.” The crisis was not confined to Ger- many, ‘It embraced all of Europe. the United_States and reached as far_as Australia, where “th: poverty * * * Was more extreme than at any former | period in the history of the coloniss.” s reasons for the upheaval, econo- mists advanced the following: 1. Heavy losses occasioned by de- striictive wars 2. Excessive speculation 3. Continuance of heavy expenditure in connection with maintenance of armies and navics 4. High fariffs and restrictive com- mercial policies of nations 5. Unsettled international affairs and | fear of impending war: G Scercity and appreciation of gold. " Depreciation of silver. Unproductiveness of foreign loans Plethora_of idle capital Overproduction. Lesson of History. All this happened half a century ago. Has the world benefited from earlier experiences? Hardly. If one were asked to adduce reasons for the present eco- nomic unsettlement, every one of the above points would fit admirably. When pessimism reached its peak and when the masses began to despair, the turn was at hand. The recovery of the con- tinent was spectacular, as it had been on other occasions, because the life of nations since time immemorial has been characterized by a “series of trade de- pressions and trade inflations. of confi- dent adventure and utter helplessness, of boom and crisis.” (Copyrizht. 1932. by North American News- paper Alliance. Inc.) 9 8. 9. 10. CURB SEAT HIGHER. NEW YORK, July 23 () —A seat on the New York Curb Exchange to- day wes sold for 818,000, up $1,500 from the last transaction, a e