Evening Star Newspaper, March 12, 1933, Page 45

Part 6—8 Pages DR STORESALES OF PEOPLES CAAN IPIRTESFIR R Lower Total Than Year Ago Held Reasonably Good by President Gibbs. NET OF $3 PER SHARE EARNED ON COMMON| Local Traders and Ingestors Deeply Interested in Reopening of New York Exchange. BY EDWARD C. STONE. ‘Total retail sales of Peoples Drug Stores, Inc., the big drug store chain with headquarters in Washingtcn, dur- | ing 1932 totaled $16,180,162.75, com- pared with $17439.031.77 in 1931, a decrease of $1,258,869.02 which repre- sents a percentage decrease of 7.22 per cent. After making adjustments for )| closed stores, the decrease in sales volume was equal to 5.80 per cent. These figures were brought out in the annual report made yesterday by the drug company, of which, M. Gibbs is president. The report added that net ecarnings for the year, after providing for adequate depreciation and all cther charges, including Federal income taxes at the increased rates prescribed by the 1932 revenue act, were $511,795.10, of which, $143,981.50 represents dividends declared and paid on the outstanding preferred stock and $367,813.60 as earnings applicable to the common stock which is equivalent to $3 per share on the common stock. During the year, President Gibbs re- ported to the stockholders, seven retail stores were closed as the result of ex- piring leases wich were not renewed due to the fact that the locations either were unprofitable or that satisfactory renewal terms could no be arranged. This reduced the number of stores in operation at the end of the year to 117 as compared with 124 on December 31, 1931, there being no new stores opened during the year. President Gibds renorted that the financial condition of Pcoples Drug was better at the end of the vear than on December 30. 1031, the ratio of current assets to current lHabilities being 3.4 to 1 as ccm-ared with 3 to 1 at the end of 1971. The érug company added that furthor progress had been made during the vear in th~ development of merchandis~ produced in the firm’s own laboratcries. In view of the economic conditions prevailing through the year, the offi- cials believe the results are highly sat- isfactory. Reasonably satisfactory re- sults during this year are believed to be assured by the continuance cf pres- r;n business and merchandising poli- cies Peoples Drug Stores preferred stock has always been listed on the Wash- ington Stock Exchange and the com- mon is listed cn the New York Stock Exchange. In normal times there is a large amount of trading in both these issues. Market Predicticns Impossible. ‘The Washingtan offices of the New York Stock Exchange firms are anxiously awaiting reopening of the; “big board,” this action being wholly dependent on the resumed banking operations. There has been a great deal of discussion here during the past week as to what the big market wil do when the tickers start moving and business is resumed One man’s guess is as good an another although the advance in commodity prices is usually interpreted as a bullish sactor. A study by Adminis‘acve and Re- search Corporation of the price action of common stocks after the only two previous extended closings of the New York Stock Exchange indicates that there is no precedent as to how the market may open after the present closing. “When the exchange was closed at nocn September 18, 1873, as a result of the failure of Jay Cooke & Co., promoters of the Northern Pacific Railroad, the average closing price for a representative group of 20 stocks, principally railroads, was 65.41,” this review states. “On the first day of the | reopening these same 20 stocks dropped to 5853 on average.” “The action following the closing on July 31, 1914, previous to the outbreak of the World War, however, showed & marked rise cn the opening date, De- cember 12, 1914. The 20 Dow Jones industrials closed at 51.88 on average and opened at 54.72. At the opening the exchange permitted trading under Testrictions and it was not until April 1, 1915, that all restrictions were re- moved By that time, after four months of stable and slightly increas- ing market prices, the Dow Jones averages had risen to 61.05.” | Offers Way to Ban Hoarding. i A recommendation that the Federal | Governmernt issue one-year notes bear- ing interest of 3 to 4 per cent as a means of bringing about a return to the banks of gold still hoarded and of aiding the Government in its short- term financing, was made last night in a telegram from Louis Guenther, pub- lisher of The Financial World, to Sec- retary Wocdin of the Treasury. Mr. Guenther’s telegram follows: ' “I wish to submit for your respectful consideration a suggestion to meet the hoarding problem. Make public an- nouncement of a one-year Government note issue bearing 3 or 4 per cent in- terest which will be delivered to all those who will deposit cither gold or currency in their banks. Bankers could be instructed to give receipts for such money with Government backing that deliveries of the Government one-year notes will be made by the banks as scon as possible. Such a| plan would appeal to those seeking absolute ggfety for their funds and at the same time would aid the Govern- ment in its short term financing which will be especially heavy during the next six menths.” Non-Ferrous Metals Strong. NEW YORK, March 11 (Spacial).— ‘There can be no doubt about the strength in non-ferrous metals. The price of lead has advanced 10 points on top of an earlier rise of $5 a ton. Zinc was unchanged Friday, but it was up $4 per ton the day before, and the trade describes the rise as spec- tacular. Consumers were described as nervous and preducers as not anxious to sell. Buying was said to be for ac- count of users of every class. New State Financing. NEW YORK, March 11 () —New H. | greater cheerfulness and less apprehen- FINANCIAL AND he Sunday WASHINGTON, D. C, BANKING CRISIS UNITES NATION FOR RECOVERY Confidence in the President’s Leader- ship Has Resulted in Better Feeling Among /Business Men. BY CHARLES F. SPEARE. Special Dispatch to The Star. EW YORK, March 11—It is sometimes necessary for a man to be shipwrecked in order to recover his spiritual conscience. It seems to have required of this country that it experience a national banking crisis to bring it to a realization of the defects in the benking system, to unite it in a plan to cerrect these, and, in the process of reconstruction, to accept the sacri- ?cea that go with it, This week has developed a new psychology on the part of the public toward existing conditions and a new philosophy in dealng with the future. stalking around in nearly every situa- tion have disap- peared and, in spite of the inconven- fence of 1imited cu;nncy llnd hi‘m- unded pay rolls, the people ve Egne about their daily tasks with Charles F. Speare. sion than they have expressed in months. It is not tog much to assert that the events of the last few days mark thegaaott:eflua!pefiodotm depression an we may expect & dual improvement in the business fe -cf ‘thé country, though we should not look for too much of a recovery in the next few months while the neces- sary réadjustments are being made. Strengthening the Banks. ‘These readjustments will possibly in- volve some further shocks to the pube lic, ially to the depositors in what are as the “weak” banks. President Roosevelt in his message o made it clear that the first task was to reopen “all sound banks.” Other banks:are to be reorganized and reopened as it may be found necessary to strengthen their capital structure and to place them on a secure basis. This is time to deal with individual situations in such a way that they will no longer infect the general position. It may be done now with less T0 INCREASE DEBT AND RETAIN CREDIT Nation Occupies Outstanding Lead on Basis of Per Capita Obligations. NATIONAL RESOURCES OUTWEIGH LOANS 16 TO 1 Statistics Show Extent to Which Other Countries Have Gone in Expanding Their Borrowings. BY DR. MAX WINKLER. Special Dispatch to The Star. NEW YORK, March 11.—Every time disturbance to all concerned than |the United States Government is about would have been le earlier. It has been known for months that there were numerous banks that had exhausted a large portion of their liquid assets in meeting the-demands of their depositors and that, with the shrinkage in their securities and in their real estate investments, they have suffered heavy drains on their surplus and even impaired their capital. Such a condi- tion is a menace to the sound banks. They have had to combine to carry their ‘limping _competitors. _The sug- (Continued on Second Page.) BANKERS PREPARE 0 REOPEN MONDAY All Sound Institutions in Na- tion Are Ready to Resume Business. BY VICTOR EUBANK. Associated Press Financial Writer. NEW YORK, March 11.—The coun- try'’s banking machinery was being ociled up today in preparation for pro- cceding under a full head of steam Monday when most of the large in- stitutions in all States are expected to open for normal business. The principal New York banks, in addition to filng reopening applications with the Federal Reserve Bank, were accepting deposits on an “if and when” basis, and several of them were meeting pay rolls in full and cashing all necessary checks. At the same time the hoarders’ “gold rush” gained headway, Wwith lines of coins, bullion and certificate changers swamping the tellers at 22 windows of the Federal Reserve Bank. The bank opened for the receipt of gold at 8 o'clock this morning and expected to remain cpen all afternoon. The bank’s usual closing hour on Sat- urday is noon. Tabulation of yesterday's receipts, principally from penitent and fright- ened hoarders, disclosed that of the $20,000,000 received at the central bank here, $11,500,000 was in coin and bullion and the remainder in gold cer- tificates. Federal Reserve notes are given in exchange for gold. Federal Reserve member banks filed their recpening applications with regional central banks and these were transmitted, generally by telegraph, to the Treasury at Washington. Prompt replies to all applications were ex- pected, owing to the fact that the exact condition of member institutions is on file at the headquarters of the Federal Reserve Board. It was not believed the names of those banks permitted to Teopen, or whose resumption of busi- ness was delayed for cne reason or another, would be made public. Certain foreign exchange business will be transacted for known commer- cial purposes and it was even expected the Federal Reserve Bank wculd be permitted to earmark some gold under special Government license. GAIN IN CAR LOADINGS REPORTED FOR WEEK Increase of 18,748 Over Preceding Period Noted, but Total Is Below 1932 Figures. By the Assoclated Press. The American Railway Association announced yesterday that carloadings for the week ended March 4 were 477,827 cars, an increase of 18,748 over the preceding week but 81,652 under the same week in 1932. Miscellaneous freight loaded during the week of March 4 totaled 160,256 cars, an increase of 9,628 cver the pre- ceding week, but 36,360 under the cor- responding week in 1932; less than car- lot merchandise, 162,052, an increase of 18,662 over the preceding wezk, but 29,452 under last year; grain and grain products, 27,861, decrease 458 and 3,510; forest products, 15,240, an increase of 1,100 over the preceding week, but 5249 under last year; ore, 1,364, decrease 325 and 732; coal, 92,166, decrease 9,475 and 3,201; coke, 4,863, an increase of 13 cars over the preceding week, but 221 under last year, and livestcck, 14,025, decrease 397 and 2,927. ——— Federal Reserve Ratio. By the Associated Press. The ratio of tctal reserves of the 12 Federal Reserve banks to deposit and Federal Reserve note liabilities combined showed a further shrinkage during the week ended March 8, as the change was recorded by the Reserve Board. In the table that follows, the reserve ratio is given for comparable weeks, as_announcer by the board: Week ended March 8, 45.6 per cent. Previous week, 53.5 per cent. Same week last year, 68.8 per cent. Large Typewriter Order Placed. WOODSTOCK, Iil, March 11 (#).— ‘The Woodstock Typewriter Co. has recelved an oide: for 623 typewriters for immediate delivery to the Pitts- burgh, Pa., Board of Education. —_— State and municipal financing sched- uled for next week totals $7,288,404. says the Daily Bond Buyer. Most of this week's offerings, aggregating $4,- 530,732, were postponed because of the banking holiday. Paris Bourse Prices. PARIS, March 11 (#).—Three per cent rentes, 75 francs 90 centimes; 4% per cent rentes, 89.50. Exchange on dollar was unquot WHEAT AND COTTON IN SHARP ADVANCE Other Commodities Have Shown Higher Trend During Banking Holiday. By the Associated Press. NEW YORK, March 11.—The two “big money” commodities, wheat nnd cotton, continued their climb to higher price levels where markets were open today, and a renewal of buying in va- rious food products, metals and tex- tiles, lifted many goutations to the high- efl.‘s‘hm since the start of the bank holiday. Some observers expressed the opinion the brisker demand in these markets reflected increased buyer confidence on the expectation of an early resumption of banking operations. The possibility that Government remedial action in the present crisis might invelve direct efforts to raise the general price fevel also was cited as a factor in the demand. Cotton holders were chary about nam- ing prices for spots. LIVE STOCK PRICES SLIGHTLY IMPROVED Steers and Other Classes of Cattle Have Gained During the Past Week. By the Associated Press. In & general way live stock markets | have come through a hectic week, with very little fundamental change from the seasonal trend. ‘With the exception of weighty steers the more important classes of cattle are about 25 cents higher, fat lambs and yearlings 10 to 15 cents higher and hogs are virtually unchanged. Chicago paid a practical top of $7.25 for long yearlings, compared with an extreme top of $7.30 last week, while the upper crust of the light and long yearling sup- ply moved freely at $6.50 up. The prac- tical top on hogs was $3.75, the same as a week ago, and on the close shippers did not go above $5.60 for lambs. It was hard to reconcile the final analysis to the early boom caused by uncertainty as to whether the markets would stay open in the face of the na- tional bank hd}dfly. Demand was whipped into a frenzied state during the first two days of the week. The| fresh pork market went wild, prices jumping up at the rate of $1 an hour only to flop back later. The extreme' peak reached $4.40 for hogs and the general market was at the highest levels in six months, ' 'Gains of around 75 cents on 100 pounds were red be- | fore a record. run of supplies allowed buyers to take off the upturn as rapidly as it was put_on. i The inflation.-market had shot the general price level of cattle up 25 to; 75 cents only to be swept back when the country rushed in all classes and grades, establishing a new trucking rec- ord. Fat lambs jumped to $6.40 at Chi- cago, the highest point since January,' but the market collapsed just as sud- denly. The close was 50 to 75 cen under the week’s high time, the top dropping successively frcm $6.40 to $5.85 and finally to $5.60. TWO SLAYERS EXECUTED Die in Chair at Ohio Penitentiary Within 15-Minute Period. COLUMBUS, Ohio, March 11 (®.—| ‘Within less than 15 minutes two men dled last night in the electric chair at Ohio Penitentiary. | John (Red) Downing of Cincinnati, slayer of two women, entered the chair at 7:30 o'clock. Six minutes later he was pronounced dead. Guards then led Mathay Brown, Cleve- land colored man, to the cheir. Downing was convicted of slaying Mrs. Mauree Bonzo, wife of an Ohio Penitentiary official, while he was on parole from a previous sentence for slaying Inez Williams of near Cincinnati. Brown was convicted of murdering a colored Steel Prospect Brightens. NEW YORK, March 11 (#)—The pect for an early resumption of activities has brought a more favorable sentiment in the steel trade. Order cancellations have not been numercus in spite of the credit diffi- culties, it is said. more, Lond 87%. ‘The | their, Mdm.l‘l %, e to issue a new loan, whether for pro- ductive purposes or to refund maturing obligations, many hold up their hands in horror. What, one hears them ex- claim, a new loan on top of an already unbearably heavy debt and an equally unbearable debt burden? That such views are untenable, and the result of superficial examination of or complete dack of familiarity with the situation is evidenced from latest statistics. America’s total debt aggregates to- day about $20,500,000,000, or about $5,- 500,000,000 less than the peak figu: established in the first post-war year. Reduced to a per capita basis, the dn- debtedness of the Nation amounts to about $165 for every man, woman and child living in the United States. Against this debt, there is the national wealth of the country, estimated con- servatively at $2,680 per capita. In other words, for every dollar of debt the United States possesses more than $16 of national resources. Debt Comparison. This ratio is encouraging enough to warrant the assertion, that the Govern- ment's debt is not only not too heavy, but even an increase need not be viewed with especial alarm. This thought is advanced because of the widespread bellef that the credit of the Govern- ment would become seriously impaired it it saw fit to assume additional liabilitles, particularly in connection with protection which it might be called upon or care to give to depositors. This is apparent if comparison is made with similar statistics of other important nations. Take Great Britain, for example. Her debt amounts, at par of exchange, to ebout $36,500,000,000, or close to $800 per capita, or almost five times America’s per capita indebiedness. The wealth of the Island Kingdom is estimated at $2,170, equivalent to a ratio of only about 28. That is, for every dollar of debt the British possess less than $3 “(;mth basis n_the of a similar ritie for the United States, the debt of the coun- try could be increased to approximately $120,000,000,000, and the Natlon's in- debtedness would still represent a smaller percentage of the resources than in the case of Great Britain. A large debt does not necessarily imply insolvency, just as a small in- debtedness is not a dependable criterion for a nation’s solvency. Great Britain, with a per capita debt of close to $800, is still regarded as a first-class credit risk, while China’s credit is relatively low despite the fact that her per capita debt amounts to only about 50 cents. There are many intangible factors which enter into the making up of a nation’s balance sheet. Good will is not the least significant of these fac- tors. Certain corporations value their good will at many millions. Why could not a nation adopt a similar policy? Compared with debt and wealth sta- tistics of other countries, the position of the United States is distinctly more satisfactory. The debt of France, in- cluding political or intergovernmental obligations, amounts to about $455 per capita, while her wealth is estimated at $1,450. That is to say, for every dollar of debt France has less than $3.25 of resources. On the basis of French sta- tistics, the debt of the United States should be approximately $103,000,000,000. Other Nations’ Status. ‘The case of Italy is also interesting. ‘The kingdom's total indebtedness, in- cluding intergovernmental debts and commitments to the Vatican, aggregates about $242 per capita, compared with a per capita wealth of $605. In other words, for ‘every dollar of debt the kingdom of Italy possesses only about $2.50 of assets. Applying these figures to the United States, it would seem that America's indebtedness could be increased to sub- stantially more than $130,000,000,000. Switzerland, which for some reason or other seems to have appealed to Americans as a haven for funds fran- tically and needlessly withdrawn from institutions, is also, on the basis of sta- tistics, in a less satisfactory position than the United States. The debt of the Swiss Confederacy aggregates $237 per capita, while the national wealth is estimated at $2,375, a ratio of about 10 to 1. Copyright, 1933, by North American News- (e paper Alliance. Inc.) WILL RETIRE OFFICER Head of Massachusetts State Po- lice to Get No Pension. BOSTON, March 11 (®).—Gov. Joseph B. Ely yesterday said Alfred F. Foote, commissioner of Public Safety, would be retired next Wednesday with- out a n, He is commander of the State police which has been under investigation. ‘The troubles of the State police grew out of a complaint made to the Gover- nor by a group of Fall River business men. They claimed that the police were mishandling their funds, that resorts. Foote receives !.h: Federal pension of 3, under emergency officers :elmlremmt act. He is a war veteran. POLITICAL CAMPAIGN ON Horner Wants Chicago Council to Name Mayor Pro-Tem. CHICAGO, March 11 (#)—Another tical cam) opened in Chicago pouwd-y. e Gosens of potential candi- ’CLASsIFIEb Star SUNDAY MORNING, MARCH 12, 1933. U.S. IS IN POSITION | UPWARD TREND IN COMMODITY PRICES IS HIGHLIGHT OF WEEK Large Grocery Purchases, Reduction in Gasoline Sales and Successful Pro- 0 BY JOHN A. CRONE. Special Dispatch to The Star. NEW YORK, March 11.—Persistent strength of commodities in the whole- sale primary markets, heavy purchases of groceries on charge accounts, sharp curtailment of gasoline sales, because of the shortage of ready cash, and gratifying response to promotion sales were high lights in the business picture this week. Naturally retail trade was greatly re- stricted, because of the banking holi- day. Changeable temperatures wete blamed for the lack of interest gener- ally in Spring merchandise. . The latter development was reflected in x unset- tled wholesale markets for ny fin- ished products. Large Open Orders. Canceled orders and postponed ship- ments were numerous, but most of these instructions came from the smaller merchants and were offset by the huge open orders being written “lY for chain stores and other large retail establish- ments, which were trying to protect themselves against advancing quotations that are bound to follow spurts in basic raw materials. On one point all commentators were agreed—the public displayed a strong spirit to carry on business despite dif- ficulties. This spirit proved that confi- dence and credit alone can mechanism of commerce fun with almost clock-like regularity despite the lack of money of the comforting re- assurance of a gold support. The gold embargo naturally t im- port trade. The lack of official foreign exchange quotations in terms ‘of the American dollar retarded exporf activ- ities. Both of these difficulties, how- ever, will tend to disappear with the banking moratorium. Business leaders stressed the fact that there has been too much banking interference with commerce and trade. Any banking reforms that will tend to keep bankers in banks and out of plants, factories, railroads and ships will be welcomed by leading industrial- ists, many of whom blame their plight either on what bankers have®done or have not done. Advertisers Get Business. Retail stores here that did the best business this week either ogered un- usual credit facilities or ads d such unusual merchandise values ghat these could not be resisted. Taxicabs esti- mated their traffic was cut 50 per cent. Railroad and steamship c also dwindled, but this was due mostly to the lack of cash. The commodity and security ex shutdown enabled many bankers, rs and clerks to take vacations, but only a few of the more progressive travel .xncles seized t.l;:z k:ppoflunlty by offering to accept cl . Spring "buying is expected to be de- layed from two to three weeks as a re- sult of the financial situation, accord- ing to Dun & Bradstreet’s weekly re- W, ough Easter is not/many weeks this authority . continues, normal provisions have of men'’s parel division coats, W trimmed variety, continued in brisk de- mand, with blue and gray the leading shades. Reorders on fur-trimmed suits were heavy and there was an active call for the swagger suits in three-fourth and seven-eighth lengths in both mono- tones and tweeds, 3 'l:hdln“mmrm?l‘w rly in th K ew ea] e weel ts and to m”;uedln comx: advance {.lmverpool and Southern spot matkets. Shoe Production Gains. ‘motion Sales Noted. leather has been moving slowly, but thére has been an active demand for upper leather. Fancy leather for noveity shoes is selling well and the hide mar- ket has displayed increased firmness in the price structure. “In the silk trade the light sale of | goods during the last few weeks have led to rigid restrictions of out The substantial contraction of production in | rayon yarns in the past two weeks came as a surprise to those outside of the trade, 2s the industry as a whole has | been operating on a basis of 100 per cent capacity since last September. The | proposed lowered price lists were with- drawn following the proclamation of the bank holiday and the firming of some of the textile raw materials, and prospects now favor the possibility of an advance.” (Copyright. 1933.) RETURN OF CHECK CLEARANCES URGED Financial Leaders of the Nation Seek Restoration of Normal Business Conditions. By the Associated Press. - NEW YORK, ' March 11—Wall Street leaders are actively discussing means to resume regular check clearing operations as the next step—and a vital one, in their opinion—designed to re- store the business situation to a normal basis. Some said that, with a development of this character, the currency problem would take care of itself, if measures against hoarding were temporarily i tely 90 t of the pproxima per cen e business of the country is normally car- ried on by the checking system. Busi- ness is becoming paralyzed, it was said in financial quarters today, not because there is a lack of currency outstanding but because the clearance of checks has come to a standstill. These views were set forth in a memorandum by Dr. Lionel D. Edie, Wall Street economist, and concurred in by & number of bank executives. ADVERTISING MANAGERS REPORT BUSINESS GAIN Middle West Displays Signs of Re- vival in Business—Stores Planning Sales. By the Assoclated Press. he CHICAGO, March 11.—Department store executives and newspaper ad- vertising managers in the Middle West business revi! Chicago’s newspapers showed an ap- preciable increase in advertising for sales in the big State street retall stores, indicating improved prospects for busi- ness. Upon expectation of bank reopenings Monday, most stores were to be large sales for next week. U. 8. Shares Gain in London. NEW YORK, March 11 (P.—Con- NEW CONSTRUCTION CONTRACTS EXPAND Reports From South Show In- crease of 55 Per Cent in February Figures. By the Associated Press. BALTIMORE, March 11.—Construc- tion contracts totaling $27,390,000 awarded in the South last month were 40 per cent above January and 55 per cent more than in February of last year, the Manufacturers’ Record says in its current issue. The total amount of contracts since | last January 1 was placed at $46,862,000. Representing a gain of 30 per cent over the first two months in 1932, which had a total of $35,891,000. Last month’s awards compared with $19,472,000 in January of this year and $17,604,000 in February, 1932. Gain This Year. The record further said the valua- tion of contracts let to March 1, this year, is 30 per cent in excess of the combined lettings in January and Feb- ruary of 1932. Besides, the February total exceeds the value of lettings in both March and April, 1932, amounting :o 1fl7,l)'l§.000 and $26,024,000, respect- vely. Jn month's contracts included $9.- 019,000 for industrial plants generally, filling stations, garages, bus and truck terminals, levees, revetments and dikes, sewers and water works. Contracts placed for additions to established manufacturing plants and for new industrie] enterprises amounted to $4,865,000. A $2,000,000 cil pips line contract in Oklahoma was the biggest single project in February. Other contracts called for the con- struction of cold storage and ice plants, oil refineries, a radio station, lumber and textile plants, creameries and dairy plants, canning and packing factories and a paper mill. General building work included apartment houses and hotels, associa- tion and fraternal structures, bank and office buildings, churches, dwellings and stores. The value of contracts let in February for that classification of work was $1,279,000 compared with $1,215,000 in the first month of the year. Public Improvements. Contracts in February for dredging rivers, inland waterways and harbors along the Atlantic seaboard and the Gulf Coast amounted to $2,679,000. February’s contracts for road paving totaled $8,750,000. ‘The added signi- ficance when it is considered that some of the States have not yet embarked on their 1933 road program because en- abling legislation is now pending, pro- hibiting the mapping out of definite programs.” Awards for public buildings amounted to $8,341,000 in February as compared with $5,804,000 for this classification in January. — COTTON AT SEVEN CENTS ving | IN TWO SOUTHERN STATES Spot Sales in Virginia and Georgia Show 50 to 100 Point Advances. By the Assoclated Press. TLANT -cent FIARGALLONDON WATCHIG THEAT TOEOLDSTANOARD Price of Metal Abroad Is at Present Fixed by French Franc. AMERICAN STOCKS GAIN ON FOREIGN EXCHANGES Sharp Advances in German Securi- ties Accompany Success of Hitler, but Trade Remains Dull. Special Dispatch to The Star. NEW YORK, March 11.—Cables and wireless dispatches to the Business Week give the following survey of business abroad for the week ending today: London —President Roosevelt's emer- gency measures have been received more calmly in London than in Lan- cashire, where cotton textile manufac- turers have been upset by the closing of the New Orleans.Cotton Exchange and later the New York Exchange. Dealings in all foreign exchanges were suspended March 4, when the news of the New York holiday reached London, but normal trading was resumed March 6, except in dollars, though a rate of exchange was determined on travelers’ checks to accommodate the large num- ber of tourists always in London. The main reaction in financial Lon- don, as far as foreign exchange is con- cerned, is the anxiety over the future of the gold standard. At present the price of gold is fixed by the French franc, with the anticipation that if the United States is forced off the stand- ard, Holland must follow and probably France. When this develops the Bank of England is expected to declare her- self ready to take all gold offered at 120s, thus providing a fixed point in the flux of unlinked currencies, and Te- storing Britain virtually to the gold standard. If this development mate- 1 rializes, Parliament will increase the ex- change equalization fund another £50 millions, bringing the total amount available to the fund to £225 millions. American Stocks Higher. Stock markets have renewed their ac- tivity following a few days of uncer- tainty. American stocks, when quoted, are generally rising. Gold mining shares are erratic. The uncertainty ihe fu- ture of the gold standard evidently is not yet fully realized in some of the great gold regions where speculation re- cently reached a new climax. Commodities have been strong all week. Cotton showed the sharpest gains, evidently due to the feeling that inflation is inevitable in the United States. Demand, however, has been steady, especially in the Far East. Metal prices were gemerally up. Industrially, the only gains for the week were re- ported from the iron and steel and en- gineering industries. Beyer Peacock are working day and night shifts on an order for 20 locomotives for the Soviet government. The contract stipulates delivery within three months. Paris.—After a dismal week end due to the news of the United States bank- ing holiday, the atmosphere again is cleared with the renewed belief that the dollar is solid except for deliberate self- undermining. _ Till now the guiding principal in Prance has been concen- trated in keeping the status quo despite the evolution of world economy, with the few iconoclasts held in disrepute. Since Saturday it has been admitted t the ultimate fate of France is linked to the United States as well as to England and that without a solid triple entente, as displayed in war times, Prance’s destiny is as uncertain as the Sibylline leaves. This realiza- ion is intensified by the new evidence of extreme German nationalism as demonstrated in last Sunday’s elections. French bankers are on pins and needles because of the uncertainty of President Roosevelt’s banking reorgan- ization plans, fearinf lest wanton dol- lar devalorization will drag along Swiss francs, Dutch florins and finally French francs themselves, and that it will even frustrate British efforts to maintain sterling at a sound and adequate level. in—For the first time in three years Germany has a government backed by a clear majority in the Reichstag, thus removing the constant political un- certainty which has been an important factor retarding business stabilization. The Hitler-Hugenberg coalition govern- ment returned a 52 per cent majority in the elections March 5. Hitler is at the helm .in Germany. German Industry Quiet. Securities have already responded with sharp advances. Steady and in- creasing investment of “standstill” credits in German stocks and bonds is an important bull factor. Industry, however, is stagnant, because exporters are apprehensive that Hitler's extremist policy of protecting the farmer will bring retaliations abroad. During the week the tariff on eggs was jumped to 12 times its former rate and the import tax on cheese was doubled. RECASTING OF BANK SYSTEM DEMANDED Unified Set-Up of Financial Tnsti- tutions Is Urged as Protective Measure. Special Dispatch to The Star. NEW YORK, March 11.—What Con- gress in its special session may do to enact emergency banking legislation is only a bit more important in the eyes of the banking world than the steps |it may then take to effect an entire re- jcasting of the banking system of the un! cot : More sentiment has been created since Saturday in favor of a unified banking set-up than could have been possible by means of propaganda car- ried over a period of normal years. ‘The public is now demanding a co- ordina system as a buttress during the crisis. This provides the necessary leverage of public opinion to bring them once and for all under one centrally located authority. It is not the plan to dilute or weaken the general banking situation by taking into the Federal Reserve System a large number of institutions that are at t of the class that Senator Glass liquidated. At the a re- to assist them the transi-