Evening Star Newspaper, March 5, 1933, Page 51

News of Markets Pages 1 to 4 Part 6—12 Pages GORE BANKING BILL WOULD FEDERALIZE FINANGIAL SYSTEM Measure Designed to Put All Institutions Under Re- serve Board. LOCAL TRADERS EXPECT EXCHANGE OPENING SOON Prompt Adjustment of Situation in New York Money Center Is Predicted. BY EDWARD C. STONE. Bankers are studying the purposes of the joint resolution introduced in Con- gross by Senator Gore which is intended to strengthen the bank situation. The bill provides that any bank may qualify, with the approval of the controller of the currency. as an associate member for A period of two vears of the Federal Reserve bank in the district in which 1t is located without subscribing to the enpital stock of the Reserve bank. The bill was referred to the Banking and mittee. ovides that the bank must egree to comply with the rules and regulations under the Federal Reserve act unless the controller of the cur- rency. with the approval of the Secre- tary of the Treasury, relieves the bank €f such compliance. The Reconstruction Finance Corpora- tion could be called upon to aid in the carrying out of any rules or regulations prescribed by the controller. Under the bill the government would Bmmediately indemnify the deposits of Bny bank against any losses which Would be directly caused by compliance with the provisions of the act. Among other results the bill is aimed ®o bring all banks into the Federal Re- e#erve System at least temporarily. Once in, the author of the bill thinks, many would remain. “Made-to-Order” Bull Markets. Answering the question so often| d of “What will put the market Richard D. Wyckofl suggests, in editorial in the current issue of | ck Market Technique, that every, person who is now a holder of any stock listed on the New York stockg;- change buy five additional shares. more or less, of the same or any other ccm- mon stock, according to his or her re- sources. “If 20,000,000 stockholders thus buy en average of five shares each, their aggregate purchases would be 100,000, 000 shares, or at the rate of 1,000,000 shares for the next 100 Stc ck Exchange sessions,” writes Mr. Nyckoff, “a made- to-order bull market should result. The mverage prices of stocks should thus i, advanced 50 per cent over the prices | ruling March 1. This would mean a ¥ise of some $25 a share in stock sclling from $50 to $100 and increas= the cqui- | ti>s of all stockholders by some 30 bil- lions of dollars. “Here is an acom from which a very | tall cak can be made to grow.” American Ice Co. Report. The annual report of the American $ce Company and subsidiaries for the car ended December 31, 1932, certified ¥ independent auditors, shows net Tofit of $1.424.313, after depreciation, | terest and Federal taxes, equivalent sfter dividend requirements on the 6 referred stock to $1.04 a| 200 no par shares of com- | zcluding 40,800 shares in | _This compares with $2,- | 55 on the common stock $n_1931. The financial statement also shows that current assets as of December 31, 2032, including $380.422 in cash, mmounted to $2471.419, and current Qiabilities were $1.742,257. This com- prres with cash of $430,831, current Mzsets of $2.862.719 and curpent liabili- #ies of $1.681,376 at the close of the Previous year. . In the current assets statement, the ®ompany gives no consideration to in- ‘vestments in its own stocks and bonds #mounting at average cost to $1,739,- 730 at the close of 1932, compared with $1828469 at the end of 1931. The zeport is of special inierest to Wash- ington as the company has maintained # large plant here for meny years and # good deal cf the stock is owned here. Exchange Action Startles Traders. Market followers in the Washington Wrokerage offices just before opening time 8t 10 o'clock vesterday were given a surprise when ‘it was announced that the New York Stock Exchange would ke closed as long as the bank holiday lasted in New York. Following the ial gains made in the market | ¥ both traders investors | thronged local board rooms to sec what Eilocks would do on inauguration day, many cpinions being expreesed that the gains would be held and further ad- wances scored Those who knew of the bank holiday in New York were doubtful that the Exchange would open. They cou'd not picture the big mart in operation with- out the necessary banking facilities. Yet morning testing on the ticker tape was over and it was just a question of ninutes before the quotations would be flashing across the translux, before the final annovncement arrived. It was a disappointing halting of Friday's sudden outburst of enthusiasm and increase 1n volume. Further flashes ove: the tape and news tickers quoted leading New York financiers as stating that the bank situation in the money center of the United States would have to be promptly adjusted and that the Exchange would soon be open again. Heard in Financial District. Richmond was onb of the cities that geported higher bank clearings during the week ending March 1, a gain of 5 per cent over the same week last year being noted. Total clearings for the country were higher than any week s far this year, substantial improvement baing noted. - The president of Safeway Stores Inc., B. M. Skaggs. states that the company will annournce puyment of the regular dividend cn its common stock withim the next few days. New State and municipal bond issues approved by the voters of six munici- palities in six States during the month of February totaled only $586.000, a new all-time low figure, according to the Daily Bond Buyer of New York. Fig- ures for February of previous years were $2427.300 in 1932, $48.300,900 in 1931 and $17.772,500 in 1930. National Tea Co. has declared the regular quarterly dividend of 15 cents on the common stock, payable April 1 to stock of record March 14. —_—— 'STOCK PURCHASERS FAIL | IMARKETS |Exchanges Are Pre Checking BY GEORGE T. HUGHES. Special Dispatch to The Star. EW YORK March 4—With lo- cal banks closed and the bank- ing moratorium national in scope, there was nothing else for the Stock Exchange to do but to suspend business. The closing was not dictated by any concern as to the market, as it was at the outbreak of the war in 1914. At that time the New York Exchange remained open un- til all the other exchanges in the world had closed. At 9:45 o'clock on the morn- ing of July 31, 1914, the governors of the exchange were notified that there were no bidders for stocks. All of Eu- rope was trying to sell. In that situa- tion closing was compulsory. Shorts Nervous. ‘Today there would have been plenty of buyers for stocks if they had had the opportunity to trade. As a matter of fact. the market closed last night high- er than it has been in a week and the only sign of nervousness was in the ranks of the shorts. In London, where there was limited trading in American shares, quotations were not much changed from the finals of last night here. Pigured on the basis of sterling at $3.46, United States Steel was quoted in London at 26's. against Friday's final here of 26'.: Canadian Pacific at 9 against 9'x, and General Motors at 10% against 10%. It is true that the urge to cover, which was responsible for much of yes- terday's strength in the New York Stock Market, was founded on fear that the exchange would be closed today. Un- der the rules, short contracts cannot be settled until the exchange formally re- opens, and no short wanted to take chances for an indefinite time. That, however, is not the whole story. The supply of stocks for covering purposes was limited, as it would not have been if the gensral speculative public had been as apprehensive as events would seem to warrant. day. The clesing of the exchanges and the banks was accompanied by a cessation of all dealings in foreign currencies here and in the dollar abroad. A pro- There was no worry | about being long over a possible holi- | 'FINANCIAL AND CLASSIFIED he Sunday Star WASHINGTON, D. C., CLOSING FORCED BY BANKING HOLIDAY EDICT vented From Doing Business by Temporary Denial of Privileges. hibition was put on transactions in London to curb excessive speculation, and in Paris there was only a nominal quotation fer the dollar in terms of francs. Europe preferred to await events before taking any fresh position on the exchanges. Action in London. ‘While all the banks were closed to- day, in some of them the safe deposit departments were open. Gov. Lehman explained that it was not his intention to deny customers the right of access to their safe deposit boxes. The fact that speculation in the ex- changes was stopped in London led many people to believe that the Bank of England was co-operating with the Federal Reserve Bank here in handling the crisis. A few guesses were made as to what sterling would have sold for if there had been any opportunity to trade, but, of course, these were pure conjectures. In view of the extraordi- nary withdrawals of gold, it is certain that the rise in sterling would have been violent. | " Customers’ rooms were well filled be- | fore the hour set for the opening of the | exchange today. In view of yesterday's | market demonstration, interest was in- | tense. When it was announced that | business would be suspended locally some attempts were made to trade in wheat in Winnipeg. but orders were ac- | cepted only from those who had Ca- | nadian balances, and they were very few. Market in Metals. Wirnipeg advices were that wheat was fluctuating rapidly, with wide swings between trades. In general, prices were sharply higher. Half through the session May was up %, July up 34 and October up 7. | The Mining Exchange here | closed. but there were reports that an | uncfficial market for silver was operat- ing. Sentiment among traders in silver | was very bullish, but that was subject | to change with the news from Wash- ington. Taronto reported an irregular market for gold stocks. Lake Shore and No- | randa were lower and Hollinger and | Dome higher. Teck-Hughes was un- | changed. was (Copyright. 19:3.) U. S. GOLD SUPPLIES DECLINE $125,000,000 Foreign Earmarking and Exports Reduce Stocks During Last <12 Business Days. By the Associated Press. NEW YORK, March 4.—The reduc- tion of gold fl; the (Unétedx‘:tlm,l through the medium of ‘“fore! ear- marking” and setual exports, in the last 12 business days has been approx- imately $125.000,000 in the aggregate. Most of the loss has been suffered through earmarking operations. with the relatively small actual exports having been represented by shipments of gold to the so-called “safety” countries— namely, Switzerland, France and Hol- land. Despite the frequent reversal of the trend of the gold flow in the last two years. the latest available figures showed the country's monetary gold stocks at £4.460,000,000, or well above the monthly average of such stocks during 1928 and 1929, when that" average stood at $4.- 250.000,000. The subsequent rise and | fall of gold stocks here has reflected chiefly the frequent transfer of funds esigned chiefly to seek safety of capi- | tal by the shippers. . IN HALSEY-STUART CASE By the Associated Press. NEW YORK. March 4—The motion of, Michael Cohen and Herman M. Stein, purchasers of Corporation Se- curities stock from Halsey, Stuart & Co., for judgment against the invest- ment firm for the amount of their pur- chases, was denied yesterday by Federal Judge Frank J. Coleman. 'WHEAT PRICE GAINS ON WINNIPEG MART Some Cash Grain Transactions Re- ported at Chicago Despite Closing of Pits. By the Associated Press. CHICAGO, March 4.—Closing of ‘Ameflcnn grain exchanges today re- sulted in the transfer of a huge amount of specuiative trading to Winnipeg. Wheat prices in Winnipeg opened 1; 7g cent higher than yesterday, but trade slackened soon and prices fell back somewhat. Near the close, how- ever, & big rush of buying orders from the United States swept prices up al- most 3 cents above Friday's finish. Traders who had sold short early be- cause of the closing United States ex- changes were stampeded into covering and the market closed near the top. ‘The Liverpool market was closed be- fore the United States exchanges were suspended, but prices there were 1%, | to 1% cents a bushel higher than yes- | on the New York banks for currency-to terday. A few transactions in cash grain were consummated in Chicago, but traders were wary because they were unable to hedge cash purchases in the futures market. 'INCREASE IN SILVER PRICE IS DISCOUNTED British Brokers Question Expedi- ent of Artifically Raising Quota- tions qn White Metal. ‘The plaintiffs alleged that although they were given to understand the | banking firm had purchased the entire $40,000,000 serial gold note issue. it had actually purchased, for investment and resale onlv $30.000,000 worth. In opposition to the motion, Halsey. Stuart & Co. submitted a voucher or return check for $28.728.276.78. by means of which. on April 24, 1930, it paid the $30.000,000 (face value) in securities. The firm further stated that it had entered into an agreement to purchase the entire issue, but that only $30,000,000 worth was issued to it. The Corporation Securities handled Insull securities. Cohen and Stein bought $9.860 worth of stock between them. It was said. however, that hold- ers of between $300.000 and $400.000 face value were prepared to press claims for reimbursement if Cohen and Stein succecded. |COMMERCIAL FAILURES ARE SHARPLY REDUCED Commercial failures in the United States continue lower. The total this week, as shown by the records of Dun & Bradstreet, Inc.. was 571, compared with 637 a year ago. The complete re- port for February this year is not available at this time, but for the past four weeks the number has been 2,432, compared with 2,861 a yvear ago and 2,591 in the same period of 1931. This year's defaults were 15.3 per cent below those of last year, and 6.5 per cent un- der those of 1931. Furthermore, 2919 business failures occurred in January, 1933, the decline for February being 17.0 per cent, which is in excess of the usual reduction for those two months. Quite an improvement appeared as to the number of business defaults in the South and the West. Failures in the Fast and for the three Pacific Coast States were slightly more numerous than they were a year ago. Of the past week’s failures in the United States, 363 had liabilities of $5,000 or more in each instance, against 368 and 418, respect- ively, in the two weeks preceding, and 445 similar defaults a year ago. Canadian failures numbered 66, against 61 in the week previous. Last year, for the correspon period, 65 defaults occurred: ~Cotton Movement. NEW YORK, March 4 (#).—Move- ment of American cotton into sight this week totaled 149,000 bales, against 264.- 000 bales a year ago. Forwardings to mills of the world aggregated 274,000 Bank Closings Fewer. NEW YORK March 4 (®.—The erican Banker says that bank clos- in February numbered 131, as com- red with 243 in Janaury. bales, compared with 281,000 in the same 1ast year. Exports of 152.000 bales compared with 275,000 bales. The figures are compiled by the New York Ootton Exchange Service. By the Associated Pr Pixley & Abell, leading British bul- lion brokers, declare in their annual circular on silver that benefits arising from any sharp artificial rise in price appear doubtful for some time to come. | Exception was made for those na- tions which already have large stocks of silver for immediate disposal. “such, for instance. as the governments of India or Spain.” Referring to the remonetization of silver, they stated that well meant ef- forts to accomplish this end in 1932 had less effect in moving prices than formerly, due possibly to the fact that the speculative element in the market is becoming increasingly skeptical of results. It was stated that the British gov- ernment has little faith in the efficacy of this method of remedy. either in in- creasing her trade with India and China or in increasing the world’s sup- plies of available gold. The circular declared that the fact the gap between producticn and con- sumption is being slowly but steadily | Jessened by natural means. ‘“The fall in production, owing to the low price of the metals of which silver is a by- product, as well as the low price of sil- ver ltself, has taken some years to become really noticeable, and when it is remembered that the fall in price began as long ago as 1926, since pro- duction is comparatively inelastic, it may be assumed that it would take nearly as long for it to increase again to anything like the record figures of 1929, it declared. ey ML New French Trade Restrictions. By the Assoclated Press. Further restrictions in the foreign trade world have been set up in a provi- .;::g gt the French budget law just pub- ed. A report to the Commerce Depart- ment reveals that the provision author- izes the ministries concerned to impose during 1933 special fees for import i- censes covering products subject to quoto restriction and to fix maximum selling prices for these products. ‘The amounts -of the tax on the licenses to import restricted products have as yet not been announced by the ministries that administer the quotas | on the various products, it was re- ported. PARIS BOURSE PRICES. PARIS. March 4 (#).—Three per cent rentes, 76 francs 75 centimes; 41 per S Bxehangt on Landon, 8735 c! on .35, lar. was unquoted. P The dal- reabaks \ | SUNDAY MORNING, MARCH 5, 1933. Classifie d Ads Pages 5 to 10 STOCKSWITHSTAND L srowemn — — ]/FOREIGN INDUSTRY SELLING PRESSURE DURING PAST WEEK Securities Market Reflebts Effect of Widespread Bank- ing Troubles, However. DEMAND FOR CURRENCY INCREASES MONEY RATE Issuance of Clearing House Cer- tificates Is Suggested to Relieve Drain on Cash. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, March 4—The country this week has cxperienced a banking crisis more severe and covering a wider area than any in which it has been in- volved in the past three years. It is comparable to those that occurred in Austria and in Germany in the Sum- mer of 1931 and in Great Britain in the following September. It is of a scope and intensity that compels imme- diate control through the application to it of some form of national restrictions on the withdrawal of banking deposits or the general employment of clearing house certificates, as in the panic of More than half of the States in the Union have already enacted laws or by decree have prohibited depositors from taking other than a small percentage of their funds from their local institu- tions. In a number of States “bank holidays” are in effect and the stock exchanges in these States are-cubject to the same inhibitions that govern bank- ing practice The chief collateral effect of this banking situation. which has spread this week from the Atlantic to the Pacific. has been a demoralized market for those securities that represent the highest percentage of investments in the port- folios of the banks and are most readily available when it becomes necessary to convert bank assets into cash. United States Government bonds have been under great pressure and have declined sharply in price. They are now from 4 to 7 points under the high levels of January. At the same time the best quality of both long and short term cor- poration securities, which a few weeks ;gn had sold on a yield basis recalling he cheap money era in the early part | of this ceptury. have been sacrificed to current necessities. One of the most significant of the phenomena of the period is the com- parative stability of stocks. This once more emphasizes their liquidated con- dition, though it may be evidence that the public, influenced by inflation talk, is turning from fixed interest-bearing securities payable in gold to “equities.” e Money Rates Stiffen. ‘Wor the first time in over a year the money market has moved out of its state of passiveness, when rates for call and time loans and for acceptances | were of nominal proportions. to one ! where there is again an urgent demand | for monéy at what are now regarded as | stiff rates. Prior to the Michigan holi- | day loans for 30 to 90 days were quoted at ! of 1 per cent and acceptances at 1y of 1 per cent. The same maturities are now 2'> per cent and 2'¢ per cent. Call money has been “pegged” since the end of 1931 at 1 per cent. It has ad- vanced to 4 per cent. These changes and the unexpected advance in the New York rediscount rate to 3!, per cent directly reflect the great demand meet _conditions in the different locali- | ties where banking restrictions are 1 | operation and the loss of nearly $100.: 100,000 in gold. They could not have been avoided with a drain that has pulled from tais center in about & month’s time over 60 per cent of the $1,000,000,000 recovery in deposits which the metropolitan _institutions _experi- enced from the Spring of 1932 to the early part of last January. Causes of the Crisis, ‘These are the effects of the present banking crisis. Now as to its causes. In January it was the almost universal belief that, while there might be a post- ponement this Spring in business re- covery, we had reached the low point in the industrial depression and need have no further fear concerning the banki situation. During the first six weeks of 1933 bank failures were comparatively small. But Congress felt its bounden duty to make known to the public just what banks had borrowed from the Re- construction Finance Corporation last year and how much they had borrowed. ‘The publication of these figures was the first shock. It was followed by a new outbreak of banking troubles which involved only moderate-sized institu- tions. Then came the Michigan “holi- C’omcldtnt with this were the startling revelaetions in the testimony before a Senate hearing' of Charles E. Mitchell of the National City Bank of New York. ‘This developed a public pyschology to- ward banks in general that had an even greater effect on sentiment than what had previously happened. It is safe to say that large sections of the public that had maintained their mental balance in the face of restrictions on the withdrawal of deposits over the country became suddenly panicky as they read the accounts of what had! been going on among the officers of the should nct be altogether forgotten that i second %nzen bank of the country dur-) forced to suspend for the first time in {1ing 1929. The sequel of all this was the rapid extension from East to West and from North to South of the legal provisions hurriedly created in order to protect the banks from withdrawals, and, it may be said, to safeguard the depositors | from themselves. Immediate Action Urged. ‘The important thing now is to find a way out of the banking difficulties, re- serving punishment of those who have been partly responsible for them for a later date. What has to be done must be done quickly. At the same time it must be effective and mechanically pos- sible. England went off the gold basis overnight. The Federal Reserve Board and the clearing house associations in the rela'vm': cenlficn c‘nulii :‘;‘ r.lhmdly omul a y of clea ouse B:l‘fificnm Wh|g;"l would check the cash drain on the banks without imposing too t a burden on the business world. It would have the effect, as it did in 1907, of relieving the acute phases of the banking crisis and protecting the investment markets, and especially that 1t against as may be required to effect changes in the future may come later, when the emotional phases of the situ- ation have evaporated. It is, for one thmxs urgently required that markets be stabilized in order to Tmit the Government to go forward g: its of refunding its early 3 for the mufi&::? prvmm:! means "?”J Terotions snd’ to political divisions. I CAN'T WOBK "THAT. THERE'S T00 MANY PIECES AND 1L BET NONE OF ‘EM TIT ANYHOW | / MERCHANTS URGED TO EXTEND CREDIT TO RE Bradstreet Executive Urges Business Men | UF G[]”] STANUARD GULAR PATRONS to Supply Customers’ Needs Until Banking Situation Is Cleared. Special Dispatch to The Star. NEW YORK, March 4.—Locally wholesale buving in many lines broad- ened during the past week. due in part to the scund credit extension policies | of manufacturers, wholesalers and job- bers here to merchants in sactions where banking withdrawals have been restricted. New York reports the turn- | .withdrawals. and the inability of chain stores to depart from their usual cash sales pclicies,” according to Dun & Bradstreet's. “Our present banking troubles affect to only a slight degree the essential test of safety in the customer, which or the time being is the reduced cash at his disposal” E. B. Moran, execu- BRITONS SEE NEED Economic Conference May Discuss Restoration of Sound Money Base. BY CHA®. P. SHAEFFER. Certain British financial quarters are looking to the forthcoming World Eco- nomic Conference as an opportunity to over of rayon in wholesale markets in- | tive of the Bradstreet Co., pointed out | lay the foundation for a return of an creased. Retailers are doing a brisker | husiness in men’s clothes. New Orders Booked. Meanwhile road salesmen are book: ing many small-sized orders and re- | orders. The latter include y coat | lines, sheer dresses. blouses and mil- | linery. Hardware orders widened. In- dustrial activity. however. is twming lower except in lines where a seasonal demand is insistent. Milder weather most of the week aroused interest in women’s Spring wearing apparel. including such articles as millinery, hcsiery and shoes. The better volume of men's clothing re- flected unusual price appeals which are being made in an attempt to clear out present stocks for Spring goods. “Many retailers in the Middle West reported an increased credit business, due to the restrictions placed on bank | | | today. “It is the farsighted manu- facturer and jobber who will take into account this fact, remembering that it in no way reflects upon or diminishes the final buying power of the customer. That should be determined upon the basis of past experimbce with the customer. his present resources. earn- ing power and personal integrity.” Credit Is Essential, Mr. Moran urges merchants to adopt the same attitude toward their custo- mers, “for a merchant to ccnserve his business today must resort largely to credit and trust to the rapid rehabili- tation of our banking system to liquify such accumulated credits against his customers. As a matter of fact the only alternative for him is to shut shop or yield his business to more far- sighted competitors.” (Copyright, 1933.) CHICAGO MARKETS FORCED TO SUSPEND Grain Pit Closed for the First Time in Its History—Stock Trading Stops. By the Associated Press. CHICAGO, March 4.—Operation of all commodity markets in the Middle | ‘West, except those dealing in perish- able goods, was suspended today. The only exception was in the live stock exchanges, potatoes, poultry and a few others, forced to remain in oper- ation to protect shipments of perish- able products. Transactions in these markets were nominal. ‘The Chicago Board of Trade was its long history. Not even during tke hectic days of the war were the huge grain pits closed. So unexpected was the announcement suspending opera- tions that the Board of Directors were forced to adopt “ground rules” to uro- tect traders who dealt in indemnities. Indemnities, or “put and take” trading, as it is popularly known on the street, were declared void and the monev paid for such transactions ordered refunded. :H\gltqu for next week remained in oul ‘The Chicago Stock and Curb Exchange quickly followed the action of the New York Exchange and suspended opera- tions, also forbidding members to accept or make deliveries, except those ap- proved by the Clearing House Corpora- tion managed by the exchange. CHEMICAL INDUSTRIES HOLD FAIRLY WELL on has affected the ndustries in United States to a lesser extent than ‘The chemical ties in general, according to, a | ated commodi report to the American Chemical So- clety by Otto Wilson, statisticlan of n, based on preliminary fig- ures of the United States Department of Commerce for 1932. hemical imports fell off 422 per cent and chemical exports declined 29. E cent, Mr. Wilson points out that statistics may be considered as & delayed effect of the since chemicals in the .8 it enal years had held up better than the gen- GOLD STANDARD SEEN AS FIXTUREIN U. § Germans Believe That Present Money Base in This Country Will Be Maintained. Special Dispatch to The Star. BERLIN, Germany, March 4.—Gecr- many is thoroughly alarmed about the banking situation in the United States, | but does not believe that the Americans will be foolish enough to desert the gold dollar. Therefore, whe today dollars Teas, cannot be sold for any price in Paris or London, they are being taken here at just one-quarter of a cent under their normal valye. Other Germans are grinning, noting that they long ago told their Amer- ican creditors with money tied up here that the day might come when they would be glag to have their funds i @ermany rather than at home. (Copyright, 1933.) OBSOLETE EQUIPMENT HAS BEEN INCREASING By the Ascociated Press. ‘The Chamber of Commerce of the United States declares 55 per cent of the present industrial equipment is now more than 10 years old and inefficient. For three years, it declares, replace- ments and improvements have got little beyond the bookkeeping entries in the depreciation account, adding that about $5,059,000,000 worth of equipment that ordinarily would ‘have been replaced needs a transfusion of newness. chamber that any com- pany which tries to keep the competi- ting antiques within ked for self de- off are the rail- with superannu- or the building own- to rent outmoded ML T Sears, Rocbuck Sales. CHICAGO, March 4 (). —Sears, buck & Co. reported that sales from January 30 to February 26, the period ‘of their 13-month fiscal year, amounted to $15,826,847, 194 t from the $19,647.639 4 spoke .4 per cent 647,639 re- period in g il corresponding > international gold standard. | _ Such is the editorial viewpoint of the | London Statist, inancial publication of the Kingdom. which sees restoration of the gold basse as the ‘“essential pre- requisite of a general revival in inter- national trade.” | Hasty Action Opposed. | No suggestion, however, is made that the former conditions of the British gold standard of 1925 shculd be continued if and when a return to gold is efTected On the contrary, it was declared that | “we obviously cannot repeat the mistake of 1925 and rush back to gold, leaving | other countries to return later at pari- ties which gave them widely disturbing | advantages in international markets.” Many and varied opinions have been advanced from time to time by financial experts of Britain anent the subject, but all are agreed that great care should be | exercised if a modified restoration of gold is to take place. Almost unanimous is the declaration that there can be no | doubt that the return to the gold stand- !ard until the conditions under which it is to work have been improved would | do more harm than good. Periodic dispatches which have come to the attention of the Federal Re- serve Board indicate that England feels she has the whip hand in the matter. and there will be no precipitate return to gold. One communication said that in many countries the abandonment of gold was not regarded as a tragedy from the purely national point of view. Hope for Agreement. Spokesmen for the kingdom have de- clared that if a return to gold is to be made it must be a fairly general and simultaneous return, and if it can be done at all it can be accomplished only by international co-operation. ‘The Statist believes the forthcoming conference offers the opportunity for such international discussion as might lead to world adoption of an equitable | gold base. CANADIAN BUSINESS SENTIMENT IS IMPROVED By the Associated Press. Improved business sentiment in Can- ada was reported in a dispatch to the ‘Commerce Department. Commercial failures there in 1932 to- taled 2420 with liabilities of 51.629.000 Canadian dollars. compared with 2.216 failures the previous year involving 52,- 553,000 dollars. Production figures for January showed increases in concentrated milk where outpat of 4,126,962 represented a sub- which increased 7 per cent over De- 3,358 units turned out was 36 per cent more than in December. ADVERTISING. PROVIDES STIMULUS TO BUSINESS By the Assoclated Press. manufacturing and distributing adver- tised products have made a better rec- ord during the depression than those purveying _unadvertised products, said Clarence Prancis, executive vice presi- dent of the General Foods Corporation, in an address before the Sales Execu- tive Club of New York. He deplored stantial increase over last year; pig iron, | cember, and in automobiles, where the ' KEEPSEYEONU.S. BANKING SITUATION Germans Also Concerned Over Excesses in Closing Po- litical Campaign. DOLLAR DECLINE CAUSES UNEASINESS AT PARIS British Equalization Fund Used to Prevent Rapid Rise in the Pound Sterling. Special Dispatch to The NEW YORK, March 4—Cables and wireless dispatches to the Business Week give the following survey of busi- ness abroad for the week ending today: Berlin.—Germany is almost at the end of one of the rcughest political campaigns that the country has ever witnessed. The burning of the home of the Reichstag this week gave Hitler the opportunity to declare the most drastic cpen warfare on the Communists. It also gave him an opportunity to silence mest effectively the final campaign ef- forts of his opponents. Obviously, the government to be in charge after Su day’s elections will be a Hitler gover ment. It remains to be seen whether or not they will win a 51 per cent of the votes cast at the polis or whether they will need to use other methods to remain in poser. Industry Remains Quiet. Business, naturally, is unsettled by all the campaign excesses, though se curity markets have remained remark- ably sieady through it all. As a matter of fact, there was more financial con- cern over reports concerning United States banks this week than over the outlook in Germany. Industrial production turned s during the week, except for ti mobile industry, which is busy filling orders booked at the unusually success- ful Berlin show. Scrap iron prices are up on special demand from Italy and Japan, but the ccal end iron and steel industries are general: ive. Cot- |ton and rayon textiles are iess active week, but the wcolen industry is this busy. Berlin is watching th= Soviet credit situation with some cor n. It is in- | creasingly evident that the Soviets, de- | spite every effort which has been made to keep up with the maturities due Germany this year. are under a strain. The German government has quietly been urging banks to advance the So- viets $35,000.000 against future imports of Russian gold, oil, timber. furs and manganese. It is generally believed that Germany will need to make. some concessions if the Soviets are to avoid default. but it is also believed that Ger- mans are willing to do this to hold Soviet friendship. Paris—France has been concerned during the latter part of the week over the fresh decline of dollar exchange Quotations have once more dropped to the gcld export peint and such banks as the Guaranty Trust Co, are swashped with demands for * transfer of dollars into other currencies. It is widely rumored that the Bank of France is co-operating in the absorp- tion of dollars. It is admitted, also, in informed quarters that forward market operations have narrowed down so drastically that even moderate pressure produces an exaggerated effect on futures rates. While the current rush to sell dollars may be only one more attack on the dollar by a handful cf professional speculators, it is true that banking authorities have become somewhat alarmed over the prolonged American banking crisis. There is constant dread * lest the United States abandon the gold standard which would mean that France would be forced to do the same thing almcst immediately. Preoccupa- tion over these two problems has caused the serious developments in the Ger- man situation to go more or less un- noticed. London.—England remains dominated by the menace of financial trouble in the United States. The closing of the Michigan banks followed hard upon a particularly pessimistic dispatch from the Washington correspondent of the (London) Times, and this conjunction of prophesy and event thoroughly un- settled transatlantic confidence, Far East Hostilities. The pound sterling might have risen dangerously had it not been for the | prompt intervention of the exchange equalization fund, the efforts of which were followed by a fortunate selling of British pounds by American banks anxious to rush their resources back into home currency In addition to the fears of trouble in America, the war cloud in the Far FEast has remained an unsettling factor, and the prospects of serious civil trouble in Germany have also affected both business and stock market deal- ings. And. of course, there is still tension in Gentral Europe following the Austrian arms incident and the recur- ring rumor that Germany, Hungary and -Italy have entered a secret alliance. AMERICAN STOCKS HIGHER IN LONDON Quotations for Leading Issues Show Sharp Gains Over Last New York Prices. i | | i i By the Associated Press. LONDON, March 4—Closing prices of leading ‘American securities traded today on the London Stock Exchange (quotations are in dollars figured at 4 shillings to the dollar) American Tobacco “B” Tel. Chrysler Corporation Gonsolidated Gas K General Motors Hydro Electro ..: . International Nickel International Tel. National Dairy NEW YORK, March 4.—Companies| Sou Union Pacific .. United Afrcraft’ & Trans. United Fruit .. United States Ste: Unfavorable Dividend Changes. NEW YORK. March 4 (#).—Stand- ard Statistics Co. reports 38 unfavorable dividend changes for the week ended Friday, the same number as in the previous week. There were 10 favorable changes, increase of two. La v