Evening Star Newspaper, January 8, 1933, Page 51

News of Markets Pages 1 to 4 Part 6—12 Pages LOGAL G4S BONDS NET WITH FAVR AMONE INVESTCRS New $8,500,000 Issue Placed on Market—Will Run 25 Years and Yield 5.42 Pct. | PROCEEDS TO PAY OFF MATURING OBLIGATIONS Peoples Drug Store Sales Reported for 1932—Better Conditions Forecast. BY EDWARD C. STONE. | In the local financial district yester- @ay, wide interest was manifssted n the | new issue of $8,500,000 Washington Gas Light Co. 25-year refunding mortgage €old bonds, to be dated January 1, 1933, | and due on January 1, 1958. These bonds, which have just been placed on sale, are priced at 941% and interest, to yield over 542 per cent. It was reported yesterday that they are already in ex- cellent local demand. The new issue, of course, has bees approved by the Public Utilities Com- smission of the District of Columbia. In- terest is payable January 1 and July 1. ‘The circular describing the bonds in- cludes information from Marcy L. Sperry, president of the gas company, showing that the local company, incor- porated in 1848, distributes gas without competition directly and through the Georgetown Gas Light Co., a subsid- iary, to the entire District of Columbia and through other subsidiaries to con- tiguous territory in Maryland and Vir- ginia, offering service to a ation of about 550,000. ooy ‘The proceeds from the $8,500,000 lssue are to be used for payment at ma- turity on April 1, 1933, of $4,000,000 6 per cent bonds and $3,000,000 42 per cent notes, due on the same date, t| remainder of the funds to be applied to operating requirements. Referring to , the circular ‘ Year’s Earnings Reported. ‘The consolidated earnings of Wash- ington Gas Light Co. and subsidiaries for the 12 months periods ended Sep- tember 30, 1932, and September 30, 1931, respectively, and annual charges on $16,199,500 of funded debt to be out- standing upon completion of this financing and the application of the proceeds thereof, are as follows: 1932, 1931 " O enmes ™ 56.453,038 $6.492.400 revenues Operati g maintenance & llf;{cludilrlll g 2EOTT waze000 4372783 ments. etc .$2,220,038 $2,119,647 Annual inter = 65 on funded debt to outstanding - 8s atove . 824,975 Net earnings for the 12 months ended September 30, 1932, after deducting $192,030 credit to reserve for retire- ments (computed as to property within the District of Columbia in accordance with regulations of the Public Utilities Commission of the District) were over 2.47 times such annual interest charges. Over 87 per cent of consolidated net earnings before credit to retirement reserve was, for the same period, de- rived from earnings of Washington Gas Light Co. aione, the circular adds. The circular refers to the valuations of the properties in the District of Co- lumbia and in Maryland. which are now being made, and details the secur- ity back of the issue. Relative to the management is stated that the supervision of the company is in charge of business and professional men, all residents of Washington. One of the concluding statements in the circular | says that dividends have been paid on | the gas company’s common stock for more than 56 consecutive years. Peoples Drug Earnings Improve. Earnings of Peoples Drug Stores, Inc., ‘were announced yesterday for the fuil year and for December, 1932. Earnings in December totaled $1,712,360 against $1,778,834, in December, 1931, a decrease of $66,474, and a percentage decrease of 374 Earnings for the full year 1932 totaled $16,199,006, in comparison with earnings in 1931 of $17,469,013, or de- crease during the past year of $1,370,007, and falling off of 7.27 per cent com- | pared with 1931 The management of the big drug chain reports that while sales were Jower in December of the year just ended than in December 1931, there was considerable improvement noted in | of the company’s territory. It is | ed that this recent improvement read to other territory. ed encouraging. { percentage figures also give a| picture. The decline of only 3.74 | e: cent for December is very much | ge!ier than the year's average of 7.27 | per cent. Ovens Charlottsville Office. | cuarles D. Barney & Co., members | of tne New York Stock Exchange, who maintain_offices in Washington and Winston-Salem, N. C., and_are con- nected by direct wires with Richmond, Va., will broaden these Southern activi ties tomorrow morning by establishing a new branch office in Charlottesville, Va. This expansion on the part of a firm back to 1873, and which | ny depressions come and go, ith its policy of prepa- tly increased business activities in the United States at the end of he current economic disturbance. | In line with these views, this house has materially widened its activities in recent months and now_ operates im- portant branch offices in Chicago, Phila- delphia, Minneapolis, St. Paul, Mil- waukee, and other cities in the East, Bouth and Middle West. The company’s Washington office is located on_the ground floor of the Woodward Building, in charge of Frank P. Morse and Edward W, Gamble, jr. Security Affiliates Favored. W. W. Smith of St. Louls, president of the Federal Advisory Council of the Federal Reserve Board, has submitted recommendations to the Senate Bank- ing and Currency Committee, relative to the Glass banking bill, which favor bank affiliates. Abolition of affiliates would seriously curtail the existing facilities for providing long term capi- tal, in the opinion of the council. Chairman Smith’s letter further says: “We belleve that unless member ‘banks are permitted to continue their contribution toward the maintenance of these facilities, the ruultm.mhmty of American business to in - term funds will become a major source \ FINANCIAL AND CLASSIFIED he Sunday Star WASHINGTON, D. C, Gas President ALL OFFICERS RE-ELECTED AT ANNUAL MEETING. MARCY L. SPERRY, Who was retained at the head of the | Washingtan Gas Light Co., when the delayed annual stockholders' session was held during the past week. The | postponed election was due to orders, from the Publiz Utilities Commission | owing to a controversy over voting of | out-of-town stock which has now been adjusted. Mr. Sperry succeeded G. A.| G. Wood as head of the company a year ago. INVESTMENT BOND MARKET IS STRONG DURING PAT WEEK, U. S. Government and Gilt- Edged Corporation Issues Make Good Gains. Special Dispatch to The Star. NEW YORK, January 7.—The bond market, after hesitating briefly on the first trading day of the new year, surged upward in succeeding days at a faster rate than in any week since the | August advance, Utility bonds of higher grade made their best prices in two years. Other groups established their best prices on | the movement. Foreign dollar bonds continued the advance started in De- | proporiions and. there. was refoieing P anc ere was rejoicing among the members of the bond crowd, who had been on & pu::y slim commis- - weel The turn of the year brought no great changes in the business situation. However, better sentiment has prevailed all Winter, when compared with the same period of 1931, and there is a ten- dency to ignore adverse news. The market has reached the frame of mind where railrcad receiverships, dividend | omissions or reductions, bond defaults | and such things are taken withr equanimity. Government Economies. Nor has politics proved as yet to be the unsettling factor that was antic- ipated. Federal economies are slow in coming, but State and municipal gov- ernments have been quick to fall into line in the retrenchment parade. New York City’s new mayor, in his inaugural speech, surprised the enemies of Tam- many Hall by the scope of his proposed expenditure cuts. New York City bonds had a sharp rise as a result. Munic- ipals generally have been firm in the | past few weeks and the year-end rein- | vestment demand proved a further; fillip to them. \ The foreign situation has ceased to trouble the market very much. Im- provement in Germany’s exports in the past year has enabled the Reichsbank to make available to German corpora- tions and municipalities supplies of | dollars needed, not only for service of | purchase their own bonds in this mar- | ket for the purpote of retiring them. | In fact, many Europeans have been | able to buy external dollar bonds listed | in this market for individual invest- | ment. A group of German bonds have | had an average advance of more than | 25 points from their 1932 lows. Eu- | ropean doliar issues generally are now ! ;‘elling from 10 to 15 points above their | lows. | On the other hand, political develop- ments in America have had some effect on European markets. Senator Borah's speech in the Senate was not inter- preted in Wall Street as containing any serious threat of inflation, yet in Eu- rose far enough above the point at| which gold exports to the United States | are profitable to assure the end of the gold movement for the present. Un- doubtedly sterling would also have had a sharp rise but for the stern hand of the Bank of England and the British | treasury authorities, who are determined | that sterling shall mot rise to the point | where British manufacturers will lose | their adventage in the markets of the | world. | U. S. Bonds Higher. Canadian dollars have remained firm | at about the point where Canada’s | profits on her sterling payments bal- | ance her Icss on payments in American ' dollars Cenada’s pavments in this | market for the next three months are unusually light, so that a firm trend in | Canadian do'lars may be anticipated. | to This has alreedy been discounted by a | rise of 4 to 5 polnts in Canadian dollar | bond. United States Government bonds con- | tinued to rise during the week. This was a natural consequence of the de- | mand for liquid investments and the | size of the amounts of idle funds in | the market, and at the same time| testimony to the merket's belief that no | large Treasury financing is to be ex- pected for some time to come. (Copyright. 1933.) SRRl B Young Renamed Director. pointment of Owen D. Young as a di- rector and deputy chairman of the New York Pederal Reserve Bank was an- nounced today. J. Herbert Case has been renamed chairman of the board and also Reserve agent. at the expense of the Federal Reserve banks is contrary to the lines laid down in the original Federal Reserve m that is, 12 sutonomous regional supervised, but not opented. by the Feleral Reserve Board.” of difficulty.” “The bill, in several places, increases 1 Reserve the wer of the Board,” continues the letter, “and de- creases the power of the Federal Re- serve Bank. We believe that such a grant of additional power to the board While Wi banks have no ISECURITY MARKETS | They have been | cent NEW YORK, January 7 (#)—Reap- SHOW PR TRED I WEEK'S TRADIG Business Discouragement Is Not Reflected on Various U. S. Exchanges. DEBT CORRECTION HELD NECESSARY TO RECOVERY Process of Deflation in Real Estate Is Apparently Making Some Progress. BY CHARLES F, SPEARE. Spectal Dispatch to The Star. NEW YORK, Januzry 7.—The three critical situations today are those sur-| rounding the raliroads, urban real es- tate and farm mortgages. All are in-| volved in debts too heavy to carry now or in the future and in interest charges out of proportion to the income from which they must be met. The solution of the problems con- nected with an adjustment of these va- rious forms of debt demands the im- mediate and serious attention of the statesmen and banking interests of the country. The railroad debt accumulated over a long period of years, but chiefly in the decade between 1920 and 1930. The rtion of it that has become an em- arrassment to the carriers developed from a program of enlarging transpor- tation facilities and increasing the effi- ciency of those already in existence; also in the purchase of properties that in some cases were legitimately required | to integrate certain systems, but in| others represented the desire for addi- | tional power or strategic advantage. Traffic Currents Change. Today there is an excess of railroad facilities due to a decline of nearly 50 per cent in the Nation's business, but as well to the new forms of competition that have developed in the past 10 years and whose effects on the currents of traffic and on rates will be permanent. It is obvious, therefore, that the rail- road plant cannot sustain the weight of debt imposed on'it and that if a healthy railroad credit structure is to be estab- lished a sfibstantial portion of the junior railroad bonds that have been floated since 1920 must be scaled down or transferred into some form of non- interest-bearing or contingent interest type of obligation. In urban real estate, as well as in real estate in suburban areas contiguous to metropolitan centers, there has been since the war the same kind of inflation and promotion that occurred in corpo- ration securities from 1925 to 1929. Values of land and bulldings were driven to exaggerated levels. Loans were made in conformity with these boomtime appraisals. There was an overproduction in the building industry along with expansion in the field of 2‘::}3])0"“1011 and in the industrial Billions of dollars’ worth of real estate securities, predicated on the high values and rents of the 20s, were dis- tributed among investors. than 50 per cent of these are in default. Widening of Deflation. . The deflation of this section of the real estate securities market is nearing completion. It is now, however, reach- ing that class of urban and suburban real estate mortgages that were made on a conservative basis, but whose posi- tion is today affected by the inability of owners of property to meet their in- terest payments and their taxes on ac- count of the perpendicular decline in their rentals or in the income which they derive from their labor or services or from various kinds of investments. The attempt to correct the several efects of inflation by more inflation has been made i the pest year. It is being proposed again in Congress. It cannot succeed. It will make a bad situation worse if it follows the lines that have been experienced by other countries since the war. We must get as quickly | their external obligations, but also to|as possible down to the hard facts that debts created during the period of pros- perity cannot be prolonged and that concessions must be made in all critical circumstances between creditors and debtors. Security Markets Firm. In spite of the discouragements that have faced the business world at the beginning of the new year, markets for securities this week have been astonish- | ingly firm. The strength in stocks is {attributed somewhat to renewed dis- {cussion of currency inflation. Bonds | that should react adversely to such a | suggestion have likewise been buoyant. influenced by the enormous amount of free money seeking | rope it was used as an excuse to sell | Sro ht and still showing & strong It is | dollars, with the result that the franc | RESSHEER! 0 diher” Government or municipal issues or the highest type of corporation loans. (Copyright, 1933.) LOUDOUN COUNTY BANKS ANNOUNCE DIVIDENDS Spectal Dispatch to The Star. LEESBURG, Va. January 7.—Divi- dend action announced by the board of | directors of four of the six banks in Loud-un County showed no deviation from tota's for the last six-month period, the total amounting to $11,000. The Lcudcun National Bank, Lees-| burg, ennounced a semi-annual divi- dend of 4 per cent and the distribution ockholder: of checks totaling $4,000. The People’s National, Leesburg. de- clared a semi-annual dividend of 3 per and wrote checks aggregating ,000 to its stockholders. The Purcellville National Bank, Pur- cellville, voted its usual semi-annual dividend of 6 per cent and mailed to its stockholders checks to the value of $3.000. The Rcund Hill National Bank, Round Hill, voted a semi-annual distribution of 21, per cent for a total of $1,000. Stockholders of five of the banks will meet Tuesday for the purpose of electing officers and receiving reports frem their directors. STATE FINANCING. NEW YORK, January 7 (#).—New State and municipal financing sched- uled for next week totals $15,498,750, as compared with $9,011,130 this week, says the Daily Bond Buyer. issue is a $9,000,000 biock of City of Quebec bonds, to be sold on Tuesday. $3 Stationery Reorders Good. in [ banking cil is made each of the 12 and | cial) —According to an ‘o_New England are doing volume of business in current promo- tions of wril paper than they did last year and 1931, | losses during the final month of last Today more | SUNDAY = MORNING, JANUARY 8, 1933. Classifie d Ads Pages 4 to 11 GAININ INDUSTRIAL | AGTIVITY NOTED AT BEGINNING OF YEAR Drift to Lower Production Checked by Upswing of Last Fall. VARIOUS LINES DISPLAY SIGNS OF EARLY UPTURN Increase in Orders for Basic Ma- terials Shows Pick-up in Con- sumer Demand Is Maintained. Special Dispatch to The Star. NEW YORK, January 7.—Although starting the new year at a lower produc- tion level than was recorded at the be- ginning of 1932, the trend of industrial activity is upward and not downward as it was then. In fact, the drift of output to lower levels, which had been in evidence persistently since 1929, was checked definitely by the strong upswing last Fall, stubborn resistance having been offered to even the usual seasonal year, says Dun's Review. Aside from the trades which were occupied with inven- tories, schedules during the week rose slightly, with steel production up some- what, due to automobile material re- leases. Requirements from miscellane- ous sources were well maintained, al- though generally small, but railroad or- ders have been delayed, and demand for pipe and tubing is almost absent. Tne farm implement industry is coming into the market for small tonnages. January specifications for tin plate have improved. Textile Production. Large production in relation to the output of other major industries is the outstanding feature of textiles at the opening of the year, and indications now point toward a continuation of at least the present activity in manufacturing for the balance of the Winter. Volume orders: are beginning to be received by shoe manufacturers, and some factories are expected to start on the new run next week. During the final quarter of 1932 production of shoes exceeded con- | siderably the totals for the correspond- ing months of the previous year, while December retail sales were larger than in the same month of 1931. The in- dustry is planning to increase the sale of men's shoes this year by the develop- ment of distinctive Summer types, increase, and January output gives in- dication of running ahead of the per- centage of gain set down for December over November. The automobile tire industry is re- ported to be in the most favorable in- ventory position in years, as stocks are at least a million units less than a year ago, with current production restricted. There has been a continuance of the moderate movement of glass to automo- bile manufacturers, but demand for both | plate and window glass is slow lnl strengthening. Statistically, the oil business is in the best shape in several years, and the 1932 operations are held to have been profitable. Production in the machine tool trade continues to| drag, and there has been no noticeable improvement in the operating schedules of hardwage manufacturers, as Spriflg orders have been light thus far. The meat packing industry in 1932 kept up its tonnage volume, maintained em- | ployment at a relatively high level, and contributed a normal quota of business to the agencies of transportation. Al- though prices were low and profits were | small, and in some cases entirely lnck-; ing, consumption of meat showed little | change, as compared with the figures of | the two years preceding. Cloth Output. The average production .f carded cot- ton cloths for 1930, 1931 and 1932 was approximately 80 per cent of the aver- | age production in the peak years of 1928 and 1929. It is stated that no other major industry can show such a favor- able comparison over a similar period. It is believed that the industry is pretty | thoroughly liquidated and with any in- | creased support from general business conditions should lead to a fairly uni- form trade. Wash goods converters have been increasing their preparations for offering printed novelties for the Spring season and active buying is looked for in the next few weeks. Full-fashioned hosiery manufacturers | are employed comfortably, and new types of full-fashioned rayon hosiery are expected to be a feature of the Spring markets. Rayon producers are well sold up on many types of rayon, and the demand has far outrun capacity on many of the fine denier yarns in viscose and other qualities and on many specialties in the acetate lines. NEW BOND ISSUES. NEW YORK, January 7 (#).—New bond issues offered in the New York market this week totaled $14,700,000, against $1.915000 in the previous week and $2,672,000 a year ago. U. 8. TREASURY BALANCE. | B the Assoctated Press. Treasury receipts for January 5 were $6.256,457.14; expenditures. $16.534,- |550.84; balance, $508,155,336.49. Cus- toms duties for five days of January | were $2,637,785.25. Land Bank Officials Named. { BALTIMORE, January 7 Special).— | At the meeting of directors of the Fed- eral Land Bank and Federal Interme- dilate Credit Bank cf Baltimore Charles S. Jackson was re-elected president; H. 8. Wynn, first vice president and treasurer; D. G. Harry, second vice president; E. Paul Crider, secretary. and L P. Whitehead, general counsel. Hugh 8. Mackey continues as man- ager of the Federal Intermediate Credit Bank of Baltimore. He salled for' Puerto Rico, where he will spend several months supervising the activities of the Puerto Rican branch of the two Balti- more banks. | | Dry Goods Business Gains. NEW YORK, January 7 (#).—Buying of dry goods in the primary market has l‘ncrund d::huy during tl:: wee:; the orders were to staple goods for fill-in purposes. Gaithersburg Bank Election. GAITHERSBURG, January 7 (Spe- announcement. B. Severance, cashier, an elec- | Hon for directors will be heid at the First Gaithersburg, January 10, at 1 which will be lighter in weight cooler on the feet. -, ducing centers employment continues to | wa TECHNOCRATIC SHOPPING MAY BE CONFUSING CERTAINLY/ You @AVE ME A 5 0MIT BiLL OF ELECTRIA ENEREGY — | T00W 00T FOR Tit' POUND OF (HEESE AND GAVE YU 3 UNITS OF WATER POWER, \ iz UNTS OF DALY HEN ENEREY, 4 UMITS OF WIND- MILL ENERGY, 72 QRIT OF STEAM POWER AND |3 ONITS OF FARM-H\RED- MAN ERERGY . AOUNT EM Y ? Vi o ) ViV AUTO TRADE SEES HEEN COMPETTION Sales Efforts During Present Year Will Be Sharply Increased. B the Associated Press. DETROIT, Januarf 7.—How many motor cars the automobile industry will build and sell in 1933 is the subject of considerable speculation but very little authoritative prediction as the first quarter of the new year gets under The conjecture ranges all the y from 1,430,000, the approximate | wa, aggregate of 1932, to 2,000,000 or more units with one guess apparently as | good as another. At the figure given, 1932 touched the low point in production for the indus- try since 1918, and if the demand for automobiles in the coming 12 months requires an output that even approxi- mates 2,000,000 units it will be regarded as cause for rejoicing on the part of manufacturer and distributor alike. Drop in Output. The drop in aggregate production since the boom period of 1929 has been more precipitate than at any time in the industry's history over a like period of time. From 1900 until 1918 the in- | dustry’s record was one of constantly increasing_output, starting with 4,192 units at the beginning of the century and reaching a high point of 1,873,949 passenger cars and trucks in 19i7. %Markets Closed In Respect to Coolidge Memory By the Associated Press. & NEW YORK, January 7—Xméfican security and commodity markets, with few exceptions, nmnn:g. lvln% my as a mark of respect to s In New York the,only markets open were the grain division on the Produce Exchange and the dairy and poultry market. Some of the large business concerns also closed, but the banks, because of | their charter requirements, transacted business as usual. POLITICS MAY HALT RECOVERY IN TRADE |Economists Expect Year of | Irregular Improvement. | Believe Depression Over. | Special Dispatch to The Star. | NEW YORK, January 7—A sum-| | mary of leading authorities on the busi- | ness and investment outlook shows that BUSINESS LEADERS NORE PIIST Confidence “Expressed in Prospect for Substantial Recovery in Trade. By the Associated Press. NEW YORK, January 7.—The first week in the new year brought no change in the general complexion of business and trade, but confidence is manifest in many quarters that 1933 will record a substantial recovery from the depression, the Weekly Trade Re- views said. “Business seems to be relieved” as- serted Bradstreet’s, “that 1932 has be- come history; with the exception of those who feel that the old order is doomed entirely, every one seems to feel that 1932 has been the worst phase of the battle against economic adversity. Commodity prices, in spite of the sharp decline during the last weeks of the old year, are still above the lows of the year. The drop in the past year was 15.9 per cent, ag2inst 21 per cent in each of the preceding years. “The combined index of business shows a similar growing resistance with | the passing Jyear of depression. Failures have shown a much better record at the end of the year than they did for the previous year. Among other series that hold their own over the low point of | 1933 is expected to be a year of irregu- | lar improvement, with a good possibility | of a sharp rebound in business and | the year are carloadings, automobile production, cotton consumption, bitum- inous coal production, bond prices, gold In 1918 output dropped to 1,170,686 the security markets. The principal |stocks and bank deposits.” cars and trucks. From then until 1927 there was considerable From an aggregate production of 3,580,- point on which authorities on the busi- | | of the next important swing but the | Dun’s said: “Resumption of business fluctuation. | ness outlook differ is not the direction | fo]lowingthe year end recession is gain- ing momentum. In scme directions it +lion units were cut from the produc- | tion mark in 1930; another million in | gverage of current economic opinion, | 000 vehicles in that year, output Went | speed with which this move is likely | 1 t moderate progress up 10 5,600,000 cars and trucks in 1929 | to get under way, sccording to Gage | e, mpresion that i e and then started downward. Two mil- | P. Wright, editor of the business Eco- | quarter, wit¥ a more defiinite forward nomic Digest, which publishes a weekly | yovement ¢oward she close of the 1931 and approximately the same num- pexiod:" | ber in the year just closed. Those of the trade who look for a sizeable increase in production and dis- tribution of motor cars in the coming 12 months point to the expectation of the keenest of competitive activigy in the low price field during the year. Conceding that the sudden rush in the latter weeks of 1932 to get new models into production took scmething from the volume that might have gone into the aggregate of the 1933 output mark, the more optimistically inclined feel that the fight for business this year will bear results requiring an increase in_production. The first quarter of the new year opens with the plans of virtualy all producers in the low price field except- ing Ford already disclosed. For Ford the position of being last to reveal in detail his plans for the approaching season is a more or less accustomed one. Already, however, it has given rise to a number of rumors, which the execu- tives of the company have chosen to | ignore as is their traditional custom. One rumor has it that experiments are under way with the fuel phase of motor car operation which if success- ful would greatly increase mileage po- | tentialities. ‘Whether this is one of the hundreds of routine experiments con- stantly under way in the Ford labora- tories or has direct bearing upon the company's plans for the line of cars with which it will enter the season's competition is a matter for the future to disclose. Like all other rumors con- | cerning the company’s plans it has not been commented upon by Ford execu- tives. Prepares for Competition. When the Ford activities are dis- ething In preparation for the competition the new season is to bring the Ford Co. already has set about the establishment of additional sales facilities. Factory sales agencies have been established several cities regarded as strategic So far these have been con- in its. Rogd-onlhy o | weighted according to the record for | accuracy of each in past forecasts. | Economists are practically unanimous |in the belief that the bottom of the | depression was touched in the Summer | of 1932. | Government interference with private | business in 1933 is expected to be great- er, rather than less. The necessity of catering to the demands of organized minorities will force the adoption of | dangerous experiments, such as meas- | ures designed to provide farm relief and, | perhaps, some tinkering with the cur- rency. Politics also is expected to hinder or prevent the scaling down of the tariffs | which many economists regard as the | principal obstacle to business recovery. | The political situation must be listed as [llnkunflvorlble factor in the 1933 out- | look. } Those authorities who comment on | the banking suitation believe that a | definite start will be made toward the | establishing of branch banking and that we shall emerge from the depression | with & much stronger set-up than that | prevailing in 1929. |~ Pew authorities enthuse over the agri- | cultural outlook; most believe that the | presence of huge supplies makes a sub- stantial advance in farm prices and gross cash farm income improbable. TOBACCO PRICE AT PEAK. | _GREENEVILLE, Tenn, January 7 | #).—A new season’s high average for burley tobacco on Greeneville markets was set yesterday when 457,828 pounds sold for $73,971.62 or an average of $16.15 a hundred pounds. Receivership Declared. ‘NEW ORLEANS, January 7 (#).—The FURNITURE' INDUSTRY HOPEFUL OF UPTURN Leaders Express Confidence in Out-| look for Business During the Coming Year. By the Assoclated Press. CHICAGO, January 7.—Leaders of the country’s retail furniture industry have expressed hope in general as to the 1933 outlook for their business. Jesse Benesch of Baltimore, who was elected president of the National Retail Furniture Association at its annual banquet, was cautious in his forecast, saying volume might be low for the first six months of 1933. But C. C. Rutherford, Knoxville, Tenn., looked for an upturn after the presidential inauguration and a restora- tion of public confidence. “We can be reasonably sure that we have reached the bottom,” said Samuel E. Kohn of Denver, who believed the market for home furniture was already reopening. George Butler of Hartiford, Conn. said: “There, will be more failures, of course. Too many factorfes and re- tailers never should been in busi- ness. It is recorded that soon after the Civil War 90 per cent of the business men failed. We have had nothing like that. The land rings with the warnings technocra of the alarmists— cy racketeers and what n?: but I believe the heart NEW PARIS REGIME 1S CONFRONTED BY ECONOMY DEMANDS Unbalanced Budget, Empty Treasury and War Debts Are National Problems. GERMAN BUSINESS MEn IN MORE HOPEFUL MOum British Trade Tone Is Optimistic, With Iron and Steel Indus- try Showing Gains. Special Dispatch to The Star. NEW YORK, January 7—Cables anc Wireless dispatches to the Business Week give the following survey of busi- ness abroad for the week ending today: Paris—France at the beginning of 1933 is faced with three vital quea{iou —an unbalanced budget, an empty treasury and war debts. So far the Paul-Boncour-Cheron combination has remained silent on all measures to be taken to balance the budget, but de- fending themselves upon obscure con- stitutional grounds, thus avoiding any long darwn out political debate. It must be granted that there has already been a presidential decree for- bidding any new enlistment of gov ment employes during 1933, wm means an estimated saving of 100,000,00 francs. This is insignificant in itself, but points to a probable renewal of ef- fort to reduce government salaries. Ten and twenty per cent cuts in salaries in general business have become com mon since last November, besides an a) preciable increase in part-time wor) The pubMc, as a result. is incr!l.llfll& inclined to favor a like reduction government salaries despite the loud protestations of functionaries, as well as ex-soldiers and pensioners, who are backed by powerful protective organiza- tions which lobby in their favor any time the question of reduction is Securities Prices Higher. In spite of the uncertainty of budget difficulties, and the disquieting aspect of many Central Euroj governments, many of whom depend on Prance, prices of almost all first-class securities on the Paris Bousse are higher, in some cases considerably higher, than at the be- ginning of 1932. Berlin.—Politically, Oemxn{ 5 a little less optimistic this week. The Christmas truce is over, and, while the Reichstag does not meet again at once, to :‘nmermtrywvnrkxlnumdu- ,'-n‘-lgé tone of business, nevertheless, i3 confident, . Annual bank reports and unusually easy this is due principally to by business and to the absence of gov- ernment borrowing. The position of the Reichsbank has been ened by fresh gold shipments from Russia. London.—There were no striking busi- ness gains in Britain this week, but the general tone is distinctly o] 3 The iron and steel industry has main- producers coal are encouraged by better demand. The steel industry received a Christ- mas present in the form of a £160,000 order for ol tanks for Haifa. This is a part of the business which is coming out of the plan to open the Mosul Oil Fleld. Haifa is the port at the British end of the pipe line from the oil field. ‘Whessoe Foundry & Engineering Co. booked the order. More than 8,000 tons of British steel will be used. Reports from the Clyde indicate that interest in shipbuilding is picking up Islowly. An outstanding optimistic fac- tor was the government’s report that tariffs are responsible for 218 new in- dustries in Britain, which will loy more than 10,000 new workers. Far East.—The Chinese have tremen- dous faith in walls. Every old city and almost every modern village is sur- rounded a wall. And China has been more or less protected in the north for centuries by the Great Wall, which is still an effective barrier to bandits along a part of its course. Japanese Offensive. Last week the Japanese moved south of this wall for the first time in their Manchuria campaign (except for their sporadic thrust at Shanghal early last year). Actually, Shanhaikwan (the city which they occupied in the first day of fighting) is located on the very spot where the Great Wall comes to the sea. But it is on the inside of the wall. That is what threw all the Chi- nese in North China into a panic. Shanhaikwan itself is an unimportant place, but it stands as the outpost of Chinese power toward Manchuria. Japan has a definite goal. Ostensibly it is the Province of Jehol, which bor- ders Manchuria on the west. Jehol is the old Summer playground of the emperors, which has recently been j turned into a vast homesteading region, to which have migrated many Chinese from the crowded plains south and east of Peiping. ‘The Chinese reason that Japan's goal may extend beyond Jehol. 1If it does, it is likely to include Tientsin and Peiping. Both citles have suffered from the last 10 years of civil strife in China, but both show remarkable resiliency, both produce large revenues. Shrewd Chinese think that Japan has found the financial drain of consolidat- ing her position in the less well or- ganized Manchurla area too great, that Tokio is going to try to take over the two choice plums to the south—Peiping and Tientsin—and control the vast revenue which comes annually out of that region. ACACIA MUTUAL LIFE REPORTS ASSETS GAIN Despite generally adverse conditions, the Acacia Mutual Life Insurance Co. jmade substantial progress during the year 1932. The preliminary statement in connection with the sixty-fourth an- nual shows that assets increased more than $4,100,000, bringing total assets to more than $49,000,000, while cash in bank on December 31 was above $1,000,000. New paid-for insurance to- taled over $36,000,000, bringing total in- surance in force to more than $355,- 000,000. More than $2,000,000 was in death benefits during 1932, wi a sum in excess of $1,100,000 was paid to licyholders in dividends. Living pol- icyholders received more than $2,700,000 in other disbursements in the course of the year. More than $2,800,000 was loaned to policyholders in the 12-month period an e as an_ex. cussing the figures.