Evening Star Newspaper, April 18, 1933, Page 14

A—14 BANKERS PROPOSE REFORM PROGRAM Recruiting of Federal Reserve System Urged by Ex- ecutive Council. FF¥ BY EDWARD C. STONE. A broad program of banking reform was adopted by the Executive Council of the American Bankers' Association in session at Augusta, Ga.. according to Robert V. Fleming, president cf the Riggs National Bank, and E. E. Mount- joy, Washington representative of the Americzcn Bankers' Assoclation, who attended the meeting. Both praise the report of Lecnard P. Ayres, vice presi- dent of the Cleveland Trust Co., chair- man of the Economic Policy Commission, which formulated most cf the proposals, as one of the highlights cf the meeting. Among the proposals is one to bring banks generally into the Federal Re- serve system on a broadened basis of admission to membership that would take in numerous State chartered com- mercial and mutual savings banks not now in the system. In discussing the need of a further co-ordinaticn of the Federal Reserve system itself, the report suggests that “perhaps a solution is to be sought in the formation of a central bank of the United States,” of which the present 12 independent Federal Reserve banks weculd beccme branches. A summary nf} the program approved by the association is as follows: Glass Bill Revislon Urged. | 1. A revised Glass bill should be en-| acted now and the Federal administra- | tion should create a commissicn to recommend, after mature deliberation, the further changes that should be made in our banking system, in our Federal Reserve system and in our monetary system. 2. In order that banks generally may become members of the Federal Re- serve System the provisions of the re- serve act shauld be so broadened as to allow for admission to membership of numerous State chartered commer- cial and mutual savings banks not now within the system. 3. Provision should be devised against the independent proclamations of bank- ing holidays by Governors of States. 4. Branch banking privileges should | be unifotm within States for all banks. | whether holding national charters or | atc_charters. | 515 Reasonable limitations should be | devised to control the sudden shifting of large commercial deposits. Would Curb Speculation. 6. Restraint on real estate specula- tion would probably prove to be a safeguard to American banking com- parable to that which would result from a restriction of speculation in commod- ities or securities. 2 7. A Federal commission on banking Jegislation should consider regulation of interest payments on all classes of | deposits, and of requirements that de- positors should give notification of in- tention to withdraw time deposits. | 8. Federal legislation should provide for the careful and rigorous regulation of the granting of loans by banks to| their own officers and directors. | 9. As the general banking system is strengthened the postal savings system should be progressively restricted. | 10. Deposits of public funds in banks‘ should have the same status as private | deposits, and should not be accorded epecial and additional security. Other Vital Proposals. 11. A more effective co-ordination of the activities of the Federal Reserve banks is neeced. ’ 12. The present emergency provisions with respect to member bank borrowing from the Federal Reserve banks should | be retained as permanent provisions. | 13. Consideration should be given to| a possible modification of the Federal | Reserve act by which the system would | be given power to change the amounts | of member bank reserves reguired, Xor‘ this power would afford control over any threat,of dangerous credit inflation. 14 Consideratiofi should be given to a change in our Federal Reserve act by which 2 minimum required relationship | would be established between our stock | of monetary gold and the combined total of our Reserve notes and our bank deposits. This would nullify most of the dangers inherent in the hoarding o(‘ currency. = 15. Expansion of business activity is our most- pressing national need. It/ should be fostered by the national ad- | ministration, by the Federal Reserve banks, by all commercial banks and by business men generally. Mr. Fleming reported that the bank- ers expressed praise of the present Washington _administration for the| manner in which various angles of the present economic situation have been attacked. The business outlook was discussed at length. The advance is bound to be gradual in the opinion of most of the bankers at the Augusta meeting. Bankers from all over the country ex- pressed opposition to the guaranteeing of bank deposits, taking the view that| such a guarantee places too much of the cost of bad banking on the shoul- ders of good banking. While the president of Riggs gave great credit to Col. Ayres for his re-| port, Mr. Mountjoy declared that the | report of Mr. Fleming as chairman of | the \ association’s National L(‘gmlmi\'e1 Committee, was of equal interest. This| roport gave in detail legislative hap- penings in Washington since the na- tional convention last October. At the meeting of the District Bank- | erb’ Association next Friday Mr. Flem- ing will make a complete report to the logal association on the Georgia ses- | sions. He will have considerable to sav on the recent growth in postal savings and the suggestion that the | pgstal savings system should permit checking accounts. , Gas Light Stock Sells at 58. Ten shares of Washington Gas Light | stock sold at 58 on the Washington Stock Exchange today, the first cale in this issue in a long time. Mergen- thaler sold at 23':. up ' Raiiway preferred came out at 817°.. Several bonds sales were also recorded around recent levels. | s e NEW YORK EGG PRICES NEW YORK, April 18 (Special) — Quotations for eggs in the wholesale cash market today were: Mixed _colors—special 16; standards, 14al4'.: storage packed i firsts, 13; seconds, 12a12! dirties, 11al1',. Whites—nearby estern receipts, Spc- standards, 15'.al6; Browns—nearby packs, 16a18; packs, 14%a sclected, cials, undergrades, 14a14';. and Western special standards, 14'.a15%. ' POTATO MARKET. ‘CHICAGO, April 18 () (United States Department of Agriculture).— Potatoes, 89; on track, 265; total United States shipments, 542; supplies mederate; trading moderate, market steady; Wisconsin round whites, 75a 80; unclassified, 65. Minnesota and Nprth Dakota Red River Ohios, 70a75; Idaho Russets, 1.30a1.40; mostly 1.35. Dollar Weak on Bourse. {PARIS, April 18 (#).—The dollar clpsed weak at 25.25 francs on the Bburse today, with subsequent private tmading at 25.18. {The selling tendency was attributed in financial circles to continued discus- slon of inflation. - 1933~ Low. 3 39 8 5% 1% T 47y 11 FINANCIAL. NEW YORK STOCK EXCHANGE THE EVENING STAR, WASHINGTON, D. C., TUESDAY, 'APRIL 18, 1933. Received by Private Wire Direct to The Star Office. Yesterday's Stock and Dividend Rate. Adams Expre Adams Express pt Adams Millls. Addressograph. Adv Rumley. . AfMliated Prod 1.20. Air Reduction (3) Alaska Juneau (60 Alleghany Corp. Aileghany Steel Allied Chem & D (6). Allis Chalmers Mfg. Alpha Port Cement. . Amerada Corp ( Am Ag Chem (Del). Am Bank Note. ... Am Bank Note pf (3) Am Beet Sugar....... Am Beet Sugar pf... Am Brake Sh&F 60c AmCan (4).... Am Car & Foundry. . Am Car&Foundry pt. Am Chicle (13)... Am Come'l Alcohol. . Am & Foreign Pwr. . Am&Forgn Pw pf(6) Am & For Pw pf (7). Am & For Pw 2d pf.. Am Hide & Leather. . Am Hide & Leath pf. Am Home Prod (3).. Am IceCo. ... Am International Am Locomotive. Am Locomotive pf. ‘Am Mach&Fdy (80c). Am Metal Co. . Am News (1%)...... Am Power & Light. . Am P&L $5 pf (1%). Am P&L $6 pf (1%) .. Am Radiator. ... B Am Radiator pf (7).. Am Rolling M1l Am Safety Razor Am Sm & Ref Am Sm & Ref 7% pf. Am Snuff (13%).. Am Steel Foundry Am Stores (12%)..01 Am Sugar (2).. Am Sugar pf (7) An Sumatra Tol Am Tel & Tel (9)... Am Tobacco (5)..... Am Tobacco (B) (5). Am Water Works(1). Am Woolen. .. Am Woolen pf...... Am Writ Paper pf... Am Zinc & Lead..... Anaconda Copper. Anchor Cap (60c). Archer-Danfels (1) . Armour of Del pf(7). Armour of Il (A)... Armour of 111 (B)... Armour of 11l pt Artloom Corp. ... Asso Dry Goods. Asso Dry G 1st pf... Asso Dry G 2d pt. Atchison....... Atchison pf (5). 4 Atlantic Coast Lin 31 515 31 9% 81 91y 20 Atlantic Refining(1). Atlas Powder. - Atlas Powder pf (6). Auburn Auto (2).... Aviation Corp (Del). Baldwin Locomot. . . 6 1308 7 5 Baldwin Locomot pf. 220 Baltimore & Ohlo.... Baltimore & Ohilo pf. Banz & Aroost (2) Barnsdall Corp. Bayuk Ciz 1st pf(7). Beatrice Creamery. . Belg N Ry pt pf 4.09. Bendix Aviatien Best & Co.... Bethlehem Steel Bethlehem Steel pf. Bigelow-Sanford. Bohn Alumn & Brass Borden Co (1.60).... Borg Warner. Briggs Mfg Co - Bklyn Manhat Tran Bklyn & Queens. ... Bklyn&Queens pf (6) Bklyn Union Gas (5). Brown Shoe (3) Brunswick-Balke Bruns Term & R Bucyrus-Erie. . 4 Bucyru: 813 ki Bucyru Bullard C Bulova Watch Burr Add Mach(40c). Bush Terminal. .. Butte Copper & Zinc. Butte & Superior. . . Byers (A M) California Packing. . Calumet & Hecla..... Canada Dry G A (1). Canadian Pacific. Cannon Mills (1 3 Case (J I) Co. Case (JT) pf (4). Caterpillar Tractor. Celanese Corp. . Cent Aguirre (1%). 74 Cerro de Pasco. “hes & Ohfo (2%) Chesapeake Corp (2). Chi & Eastern Il Chi & Eastern 111 pf.. Chi Great Westn pf. Chi Mil St P & Pac Chi Mil StP & Pac pf. Chi & Northwestern.. Chi & Northwest pf.. 4 Chi Pneumatic Tool.. ChiR1& Pac 6% pf. Chi Yellow Cab (1).. Chickasha Cot O(1) Chrysler Corp'n..... City lce & Fuel (2).. City Stores. ... . Coca-Cola Co (7).... Colgate-Palm-Peet. . Colg-Palm-P pf (6).. Collins & Atkman.... Colo Fuel & Iron.... Colo Fuel & Iron pf. Columb G&EI(bS0c). Columb Carbon (2).. Columbia Pict vic Commercial Credit. . Comel Cred pf B (2). Comel Inv Trust (2). Comel Soly (60c) . Comwlth & Southn. . Comwlth & Sou pf(6) Congol-Nairn (60¢). Congress Cigar (1).. Jonsol Clgar... . Consol Cgr prpf 6% .. Consol Cigar pf (7). Consol Film.... “onsol Film pf...... Consol Gas N Y (4). Consol Oil Corp. Consol Textile...... Container Corp (A). Container Corp (B). Contl Baking (A). Contl Raking (B). Contl Can (2). .. Contl Diamond Fibre Contl Insur (1.20)... » Contl Oil Del Corn Products (3) Tig Corn Prodpf (T).... Cream of Wht t2% .. Crown Cork & Seal... Crown C&S pf (2.70). Crown Zellerbach Crucible Steel. Crucible Stecl pf. 4 Cuha Co.... 3% 17T% 9% 1% 26 12 10% 10% 6% 2% 29 32% 98l 1'% 61% 46 130 120 6 34 3% % 20% 10 2% 1 % 1 ™ 3% Cuban-Am Su; “uban-Am Sugar pf. Cudahy Packing 2%. ~artis Publishing... Curtis Publishing pf. Curtiss-Wright. . Cushmans pf (7).... Deere & Co pf (20¢).. Delaware & Hudson. Del Lack & Westn. .. Devoe & R 1st pf (7). Diamond Mateh (1).. Diamond Mach pf 1% Dome Mines (11.30). Dominion Stores 1.20 Doug Afreraft (76¢c). Dresser Mfg (A).... Dresser (SR)Mfg(B) Drug In¢ (3)........ Dupont de Nem (2).. Dupont deN db pf(6) Eastern Roll Mills. . Eastman Kodak (3). Eastman Kod pf (6). Eaton Mfg Co. . Eitington-Schild. Elec Auto-Lite, Electric Boat. Elec & Musical Instr. 20 o 3 et o D e R T e o 0 w3 Elec Pwr&Lt..oooes o L 4+ A4t LR G - +13 i 444 £ PlA+ 04+ 14441 @i FEFRETE FFFIT FE FEFPF Fr & 5 E FEEF FOEREES F FES 15 201 2t 3 80 201 1513 381 238 62 50 110 3y 9% 2 % =+ '/¢l 211 +1 hi 120 17% 30% 11% 814 6915 21% 130 Yesterday's 1933~ Stock and les Low. Dividend Rate. Add 00. High. 6'3 Elec Pwr&Lt 46 pf... 2 8 21 Elec Storage Bat (2), 1 26 Endicott-Johnson(3), 18 64 Equitable Of Bi(1).. 3% ErieRR. 4 Erie R R 1st pf. 10 Fairbanks-Morse pf. Tt Fed'd Dep Stra(60¢).. 4% Federal Lt&Traclon. 15 Fed Mines & Smit. .. 18 Fed Mines & Sm pf. . 1% Fed Water Service A 10' Fidelity-Phoen 1.20., 914 Firestone T&R(40c). 42 Firestone T&R pf(6) 43 First NatStrs (2%). 4' Foster-Wheeler. 2 Foundation Co 13% L 80s Fourth Nat Inv 1.10 Fox' Film (A)....... 12 Frankin Simon pf(7). 16% Freeport-Texas (2 9 Fuller Co pr pf. 2% 808 18 Gen Am Investors 13% Gen Am Trans (1) 4% Gen Asphalt. . 13 Gen Baking (2). 2'% Gen Bronze. 6!z Gen Cable pf. 29 Gen Cigar (4).. 4 Gen Electric (40¢). Gen Elec spec (60c) Gen Foods (1.60) . % Gen Gas & Elec (A).. Gen G&E 6% cvpfA. Gen Mills (3). Con Mills pf (6) Gen Motors (1). Gen Motors pf (5. Gen Outdoor Adv. Gen Outdoor Adv ( Gen Public Service. . Cen Ry Signal (1) Gen Realty & Util. .. Gen Kealty & Util pt. Gillette Saf Raz (1). 66 Gillette Saf Rpf (5). 3 Gimbel Bros. . Gimbel Bros p: Glidden Co.. 2 Goodrich (B F). Goodrich (B F) pt Goodyear Tire&Rub. Goody'r T&R 1st (2). Gotham Silk Hoslery. Graham-Paige. ..... Granite City Steel(1) Granby Consol Grant (WT) (1). Great Northern pf... Great Northern Ore Great West Sugar Great Wn Sug pf(7). 8508 Grigsby Grunow.... 7 Guantanamo Sugar. . Guantanamo Sug pf. Gulf States Steel. Gul Hahn Dept 215 Hamilton Watch. 6912 Helme (GW) (17) 15 Hercules Powder 1% Hershey Choc (3). Hollander Sons. Homestake M(110). . Houdaille-Hersh(B). Houston Ol e Houston Ofl (new).. 2 Howe Sound (40¢) Hudson Motor Car. Hupp Motors %13 11linois Central..... Illinois Cent 11 (4).. Indian Refining Industrial Rayon (2) Ingersoll-Rand(1%). Inland Steel & Inspiration Copper. . Interboro Rap Tran: Interlake Iron. . Interconti Rubber Int Bus Mach (6).... Int Carriers Ltd 20c. IntCement......... Int Combustion. Int Combustion pf. Int Harvester (60¢).. Int Hydro-Elec (A).. Int Merchant Marine Int Nickel of Can. Int Paper & Pwr p Int Printg Ink pf (6) 208 Int Rys Cent Am ctfs 2008 Int Salt (132). ] Int Shoe (2 Int Silver. Int Silver pf. Int Tele & Teleg 13 Interstate Dept S 11 Island Creek Coal(2 121 Johns-Manville. 3 42 Johns-Manvillepf... 90s 35 Jones& Laugh pf(1) 30s K C P&LT ISt pfB(6) 1208 Kaufmann Dept St.. Kayser (J) & Co Spring Tire. .. y-Sp Tire 6% pt. Kelsey-Haves (A). Kelvinator Corp Kendall Co pf (6). Kennecott Copper Kimberly-Clark 513 Kresge (SS).. 1415 Kroger Grocery (1). 221, Lambert Co (4) 3% Lee Rubber & Tire. 57 Leh Port Cement. 34 LenPortCmtpf3 1 Lehigh Valley Coal. 214 Lehigh Val Coal pf.. 8% Lehigh Valley R R.. 3713 Lehman Corp (2.40). 12 4% Libbey Owens Glass. 10 Liggett & Myers(t3) 3 Ligg & Myers B (15). 58 Lima Locomotive 1 6% Link Belt (40c). 10% Liquid Carbonic 813 Loew’s Inc (1) 13, Loft Inc. ... 19% Loose-Wiles Bis (2).x 10% Lorillard (P) (1.20). 137 Lou Gas&EIA (1%). 21% Loulsville & Nash... 4 Ludlum Steel. ... 91, McAndrew Forbes(1) 1 75 McAnd Forbes pt (6) 1878 Mcintyre P M(11%). 58 McKeesport TP (4). 47 McKesson & Rob pf. 4 Mack Trucks (1). Macy (RH) & Co (2). Madison Sq Garden. ] anaZeaBmpteReiBe 6% 164 1l 49 Manati Sugar. Manati Sugar pt. hattan Elev gtd Manhat Elev mod gtd Marine Midld (80¢c) Marlin-Rock (1).. Marmon Motor Car. . Marshall Field & Co. Mathieson Alk (13%3). May Dept Stores (1). Mengel Co. . . Mengel Co pf Miam1 Coppe Mid Continent g Midland Steel Prod. . Min-H'well Reg (1) Minn Moline Pow... 5% Mo Kan & Texas Mo Kan & Texas pf. Missourl Pacific pf. . Mohawk Carpet..... Monsanto Chem 1% Montgomery Ward. .. Morrell (J) & Co (2). Motor Product: 115 Motor Wheel..... 1% Mullins Mfg. 5 Mullins Mfg pf. 1% ¥ array Corp. . 8 Myer (FE) & Br 11's Nash Motor. 1% 1'% Nat Bella Hess pf Nat Biscuit (2.80) Nat Dairy Prod 1.20.. Nat Dept Strs 1st pf. 15 Nat Steel (50¢).... 4 Nat Supply Co. 2% Nat Surety.. N 14 N Y Central. 100 N Y & Harlem (5) 11% N Y N H & Hartford. 32 18 NYNH&Hartpf.. 6 7% N Y Ont & Western.. 15 1% N Y Shipb'ldg (10c). 12 31 N Y Shipbldg pf (7). 90s 17% Noranda Min (a1.10). 84 111% Norfolk & West (8) . 1 124¢ + % 83% 77 Nori& Westnpf (4). 40s 5 241 n -24% =g +6% =iagl =35 + 1 +1 +3% Pttt d44+ 41 s s rsEEes 2 STOCKS IN ADVANCE ON BRISK TRADING Market Moves Forward Steadily After Irregularity in Opening Sales. BY GEORGE T. HUGHES. Special Dispatch to The Star. NEW YORK, April 18.—Except for a brief period at the opening, todayz stock market was active and strong. The best prices were made in the last hour and the close was not far below the Rest of the session. ‘The sugars were the leaders, followed closely by the steels and the rubbers, but all the industrials which had any commodity attraction at all were ac- tively bought. The upward swing was 5o strong that it took along with it, although to a much less degree, the rails and the utilities. American Sugar refining not only touched a new high, but at 50 was up 6 points on the day. Gains elsewhere were not as pronounced, but there were a number of advances run- ning from 2 to 3 points. The market wes not impressed by the reports from Washington that the drive for inflation had collapsed. On the contrary, it displayed implicit faith in some form of currency expansion. And yet the factor of improving busi- ness entered into the matter, especially in the case of the steel and the can stocks. The announcement in the late after- noon that the Chicago & Eastern Illi- nois had made application for reor- ganization under the new bankruptey | law tempered enthusiasm for the rails, although such a development had long been anticipated. Commodities were strong without ex- ception. Spot sugar made a new 1933 high. Wheat went into new high ground. with September selling above 65 cents a bushel in Chicago. Gains at the close ran from 1! to 2 cents. Other grains were up more or less, with barley having the largest rise, almost 4 cents in the case of the May delivery. Silver, down at the opening, was up 70 to 80 points in midafternoon. The foreign exchanges fluctuated nervously but uniformly against the dollar. In the last hour sterling was up 4 cents, francs up 3 points, the belga up 5 points, guilders up 34 points and Swiss francs up 12 points. Volume of trading in stocks during the first two hours was light and the net changes mixed. American Tele- phone made ancther new low by & frac- tion and the public utilities generally were heavy. Coca Cola was weak, off at one time 3 points, but that was a special case. Among the strong spots were Great Western Sugar at a new high. American Sugar Refining preferred. also at a new high, and American Sugar common, close to its old high. Special buying | came into McKeesport Tinplate within a fraction of its previous top. The com- pany made a good showing in earnings for 1932, everything considered. and its financial position is strong. The pres- ent outlook for McKeesport's business was reported favorable Steel stocks were firm all through the irregularity in the rest of the list, espe- cially the shares of the steel companies, Bethlehem and Youngstown. The equipment stocks were well supported, with General Railway Signal a feature. WHEAT SUPPLY SMALLER. NEW YORK. April 18 (|—The vis- ible supply of American grain shows the following changes in bushels: Whea! decreased 1.822.000, corn decreased 1 123,000, oats decreased 225,000, rye in- creased 107,000, barley decreased 5,00. NEW YORK, April 18 (#.—Bar sil- ver firmer, !, higher, at 28 Stock and Dividend Rate. North Am Av 151 North Am (b8 % st North Am Ed pf (6) . 5t North German Lloyd 9% Northern Pacific. ... 1 Norwalk Tire & Rub. 4%, Ohio O11 14 Oliver Farm Eq 3% Oliver F Eq pr 64 Omnibuspi A (8). 213 Oppenheim Collins. . 101 Otis Elevator(60c) .. 9312 Otis Elev pf (6)..... 1 15 Otfs Steel...... 21, Otis Steel pr pf. 3113 Owens 111 Glass (2). Pacific Coast 2d pf... Pacific Gas & El (2). Pacific Lighting (3). Pacific Mills...... el Packard Motor Car. . Panhandle Pro&Ref. Park & Tilford. ... Park Utah. ... . Parmelee Transport. Patino Mines....... Penick & Ford (1)... Penney (J C) (1.20). Pénn Dixie Cement. . Penna RR (h50¢). Peoples Gas Chi (5). Pere Marquette pr pf Petrol Corp of Am Phelps Dodge. Phila Co 6% pf (3).. Phila& Read C&I... Phillips Petroleum. . Pierce-Arrow. Pierce-Arrow pf Pierce Oil pf. . 5 Pillsbury Flour(60c) Pitts Coal. Pitts Screw Pitts Steel pf. Pitts Plymouth Oil. Poor & Co (B). 5 Port Ric Am Tob(B). Postal Tel&Cable pf. Proctor & Gam(1%). Proc & Gamb pf (5).. Pub Sve N J (2.80)... 4« Public Sve NJ pt (5). Public Sve NJT pf (8). Pullman Corp (3)... Pure Oil. . Purity Bakeries (1) Radio Corp 4 Radio Corp pf (A) Radio Corp pf (B)... Radio-Keith-Orph... RR Sec 111 Cent St Raybestos-Man (60¢) 4 Reai Silk Hoslery. .. Remington-Rand. Reo Motor Car. Republic Steel Republic Steel pf. Revere Cop & Br pf. Reynolds Metals(1) . Reynolds Tob B (3).. 1% Richfleld Oil. . . Rossfa Ins of Amer. Royal Dutch < Safeway Stores (3).. 2 17% St Joseph Lead Schulte Retail Stores Seaboard O1l (50¢c) . 4 Sears Roebuck...... Servel Inc . Sharon Steel Hoop. .. Sharp & Dohme.. Shattuck(FG) (2 Shell Union Oil... 4% Simmons Co......uu 4% Simms Petrolm (25¢) 7 Sloss Sheffield Steel. . 8% Sloss-Sheft Steel pf. 3 Snider Packing... 6 Socony Vacuum 40c. 15% So Port Ric Sug 1.60. 17% South Cal Edison(2). 114 Southern Pacific. ... 4% Southern Railway... 5% Southern Railway pf % Sparks-\Withington. . 1 Spiegel-May-Stern. . 13% Standard Brands (1). 5% Stand Gas & Elec. ... 8% Stand Gas&El pf (4). 6 19% Stand Oil Calif (2) . 17% 12% Stand Oil Kansa. - T Commodities'and Special Dispatch to The Btar. NEW YORK, April 18.—The momen- tum toward inflation has become so strong that it is unwise to close one’s eyes or ears to it, even though it may not be regarded as the proper means of correcting the present economic troubles. It is a force that must either spend it- self: or be diverted in a way that will do least harm. It is today sufficiently prominent in discussions in Congress and among individuals to warrant seri- ous attention. The trend that the agitation for im- proving the price level has taken re- cently is toward a devaluation of the dollar. Advocates of it maintain that this will be not only the most effec- tive method of lifting burdens from debtors and promoting industrial ac- tivity, but that it can be accomplished more quickly than other forms of in- | flation, and, in the end, will leave less unpleasant reminders of a distressing chapter in the financial history of the country. Power Vested in Congress. ‘The Constitution of the United States provides that “Congress shall have power to coin money and regulate the value thereof.” The present price of gold is $20.67 per ounce. The content of the dollar is 23.22 gralns of fine gold. One recommendation is that a new price of $36.17 per ounce be es- tablished; another that the 23.22 grains standard of gold in the dollar be re- duced to 15', gralns, under which an ounce of gold would be worth $31. 1t is taken for granted that any legis- | lation invoked for the purpose of changing the gold content of the dollar must become effective overnight, 5o that | there could be no preliminary specu- lation based on it, as there would ob- viously be if the subject were debated | and it was evident that a change wns’ imminent. In this respect the situation in the United States is different from | that which prevailed abroad a few | years ago, when devaluation occurred after a long period of inflation and such countries as France, Belgium and | Italy established a new gold basis at| a point where values, according to the | current price index, were at approx-| | imately a parity with those when the obligations affected were incurred. | The immediate effect of reducing | the gold content of the dollar would be to make gold worth more in pro- | portion to the revaluation basis. Those | who possess gold would profit by the | transaction. It is estimated that this | gain would be over $1000.000,000 on the gold reserves held in the Federal Reserve banks. There would be more hoarding of gold unless the Govern-' FINANC PLAN TO REDUCE GOLD CONTENT OF U. S. DOLLAR IS: DISCUSSED Proposed Devaluation Scheme Should Have Immediate Effect Upon Prices of Common Stocks. ment could check this by stringent regulations and espionage. ‘The primary effect of a devaluation of the dollar should be most visible in prices of commodities and. common stccks. Assume that the price of gold were to be raised 50 per cent. The logical sequel would be en advance in quot-ilons of, say, wheat and cotton. at export points, of about the same amcunt. Prices for industrial stocks would be expected to have a similar appreciation. One commentator states that the value of lumber and building materials wculd at once rise 50 per cent. ‘The effect of the higher prices would be an increase in the purchasing power of producers of commodities, which, in turn, would revive business in merchan- dise norm#lly b-ught on a considerable scale when farm prices are satisfactory. The appreciation in lumber and build- ing materials would raise the values of improved real estate and check fore- closure sales. It would revive the build- ing industry, where there exists today one of the largest grcups of unemployed. Effect on Bonds. A collateral effect of revaluation of the dollar is its action on.bonds. This would not be uniform. It is dificult to see how a changed basis for the dollar could avoid some depreciation in Gov- ernment lcans and in high-grade corpo- ration mortgages. These are tradition- aily affected by their gold status and by the going rates for money. Their prices today are not influenced by any ability to cover their service charges. On the other hand, a great number of corporation bonds are currently quoted at the lowest prices in their history because of the impending danger of default. They do not sell in any relation either to the gold contract in the indenture or to the current. money rate. If the revaluation stimulates industry, theee bonds wiil gain their proper proportion | of return in increased earnings and, | consequently, the danger of their de- fault will lessen. Therefore, bonds of this type ought to advance, perhaps even more than common stocks. The present price of gold of $20.67 per ounce was established nearly 100 years ago by Congress, after it had been zet at $19.29 an ounce in the year 1792. Except for a period during the panics of 1837 and 1857 and from 1862 to 1879, this figure has been consistently main- tained. The fact that there is now active consideration of a change in the price level of gold is one of the many evidences of the unprecedented char- acter of the financial crisis by which the country is faced. (Copyright. 1931 CHICAGO DAIRY MARKET. | CHICAGO, April 18 (#.—Butter, 9921; firm; creamery specials (93 score), 201,a20%; extras (92), 18%; extra firsts (90-91), 19%,: firsts (88-89), : standards (90, centralized carlots), e el FOREIGN EXCHANGE. | (Quotations furnished by W. B. Hibbs & Co.) Nominal gold Selling checks value today. | ndon, pound.... S4Ki5 §3 Paris_franc ... . o a9hc | | Brussels. belaa. . | Berlin. mark : 2301 | Rome. lira. ... { Zurich, franc .. Atnens. drachma. . Madrid. peseta . .. Vienna/ schilling " | Bucapest. pengo Prague. crown (n.) Warsav. zloty . . Copenhagen, crow: | Oslo.” erown. . Stockholm. crown | Montreal discount Net. ~ Low Close. Chge | High. Loy 5l 31, 22% 1% 18 + %, 6 4 49 49 3%, 5% 5% + 108 12 51 1 347y 6% % Superior 2 2% % 2 Fuperior 8. .8 1. Symingt 704 Tow 4 5 154 12% 9514 2t 41 3y 5% — Stand Of | down since July 1, |of the men to return to work because Stock and Sales Dividend Rate. MILLS AT CUMBERLAND IN OPERATION AGAIN Special Dispatch to Tne Star CUMBERLAND. Md., April 18.—The hot mills of the N. & G. Taylcr Co. tin plate manufacturer. resumed op- erations vesterday after being shut following refusal the company would not sign a new werking agreement, but offered to con- tinue the wage scale that was being paid as long as market conditions would permit. Nearly all the old men have gcne back. The pickets placed about the plant | by the Amalgamated Association of Iron, Steel and Tin Workers have been witkdraw, The strike affected about 125 men. It was announced all the mills wculd go in cperation as soon as | | manned, but local ien would be given | preference. For nearly 40 vears this has been a leading Cumberland indus- ry. Yesterday's Net. Low. Close! Chge. 281 287 44 3 Add 00. High. 1 . 87 20w 34y + 2 Studebaker Corp. .. . Studebaker Corp pf. . 3808 2 ofl. Stea| on (A). Texas Corp (1). Tex Gulf Sulphur(1) Tex Pacific Land Tr. Thatcher Mfg Co. The Fair pf. .. Third Avenue. s Third Nat Inv (90¢). Thompson (J R) (1). Thompson Products. Tide Wi ter Asso Ofl. Tide Water Assoc pf. Timken-Detroit Axie Timken Roller Bg(1) Transamerica Corp. . Tri-Cont ‘Truscon 1 Corp . Steel. L Ulen & Co. Und-Ell-] Und-Ell- Fisher(50¢) Fish pf (7). Union Cart & C (1).. Un Oll of Calif (1) Union Pacific (6). Union Pacific pf (4 Unit Afrcraft. Unit Afrcraft p! Unit Biscuit (2).. Unit Carl Unit Cor U S Hoft U U S Leat US Leat] U S P&F U S Real! Util Pwr 144 T 3 1% 6% 3% V 5015 35% 85% 654 23% 12% 8% 5% Waldorf 37 West Pa Western 79% - 5% ¢ Western 871 — 1y 12% + % 34% Wrigley 1335 5% 10:30 AMu..... 1:30 P.M. Divitend rates as Dayments based on th 4 Unit of tradin; 4% in stock. & Paid stock. e Payable 2% in stock. J Plus $1 in stock. m Pald last year—no o Payable in seris. % Walworth Co....... 11% Ward Baking pf (1). 1 Warn Bros Pictures. ‘Warren Bros. . Warren Bros Wesson O & Sn (50 Westing’se Air B(1). 3 Westinghouse Elec. . % Westvaco Chiorine. . i Wheeling Steel.. = 2 15 Wheeling Steel pf. Wilcox Oil & Gas. Wilson & Co.. 8 Worthington Pump. 14 Worth'n Pump pt A.. 2% Yellow Truck... 715 Youngstown Sh&Tn. 3% Zonite Products. * 3 Sales of Stocks en New York Exchange. D (400). Unit Corp pf (3) Unit Electric Coal ¢ Unit Fruit (2). . Unit Gas&Im (1.20), Unit Piece Dye Wks. US & Forn Sec pf... U S Freight...... U S Gypsum (1). 'man. . S Ind Alcohol. her. .. her (A) U S Pipe&Fdy (50¢). 1st pf 1.20.. ty & Imp. U S Rubber. U S Rubber 1st pf. .. USSmtg & Ref (1).. U S Smtg&Ref pf 3% U S Steel. . U S Steel pf (2). % United Stores (A)... Tnit Stores pf (3%). &Lt (A)... Vanadium Corp. Van Raalte. .. - Car Chem 6% pf. Va-Car Chem 7% pf. Va Elec&Pw pf (6).. Vulcan Detinning. .. System (1) PYS-T YN So Elecpf (7). Marylsnd. . Union. . - 3 ®_o 2aln 2naBRioran (Wm) (3).. A 12:00 Noon. 440,000 210 PR, 940,000 siven in the above table are the annuai cash test quarterly or haif-yearly declarations. 140,000 7 jess t) this in cash or stock. fPlus 8% in n:eh h Plus special preferred Plus 3% in tegular rate. aPlus 5% in stosk IAL. FEDERAL RESERVE SYSTEM STRONGER ‘All Accounts Have Shown Betterment Since Recent Banking Holiday. BY CHAS. P. SHAEFFER, Associated Press Business Writer. Betterment, without exception, has taken place in every account of the Fed- eral Reserve System since the banking crisis in this country reached its peak on March 8. ‘The item considered of the most im-~ portance—monetary gold stocks—has shown a relatively small gain of $50,- '000,000, but the 12 banks in the mean- | time have added $631,907,000 to their |total geld reserves, indicating the | proress made in segregating the yellow metal in the Federal Treesury and its agencies. Money in Circulation. Money in circulation has shown a de- crease of $1,391,000,000 during the five- week period, indicating a return of con- fidence by depositors in banking insti- tutions, which represented itself in the redeposit of a major portion of this amount, which was, in turn, restored to Federal agencies to serve a useful pur- pose in the expansion of credit. ‘Total Reserve bank credit appears re- stored to normal proportions, the amount outstanding on April 12 being $2,528,000.000. The principal changes in'the various items making up this ac- count are found in bills ciscounted, which declined almost $1,000,000000 to $428.000,000 on April 12, and in bills bought, which dropped off $70.000.00) to total $247,000.000. Both these items on March 8 portrayed the frantic ef- forts of member institutions to realize on all eligible paper, thus procuring funds to meet heavy withdrawals. Also, the last five weeks have shown a steady increase in the Federal Re- serve ratio of gold to note liabilities and deposits, combined. This ratio on April 12 had risen to 60.6 per cent. as com- pared with a low level of only 45.6 per cent on March 8. Principal Items. In the table that follows the principal Federal Reserve bank items are given for the close of business on April 12. as compared with comparable figures as of the close of business on March 8. as reported by the Federal Reserve Board (000,000 omitted) : April 12. March 8. Bills discounted .. 8428 Bills bought . > 2 U. S. Govt. securities. ... 1,837 | Othtr Reserve bank credit 16 Total Reserve bank credit 2.528 | Monetary gold stock 4293 | Treasury currency ad- | justed : .- 1,013 Money in circulation. ... 6,147 | Member bank reserve bal- | atices: ... Unexpended |~ funds. non-member de- posits. etc. Federal Reserve ratio 2,096 . 491 ..60.67 e Steel Rail Production. NEW YORK, April 18 (#) —Onl; 402566 tons of steel rails were Dl’oY duced in the United States last year, | the smallest volume since 1877. Pro- | duction in 1931 was 1,157,751 tons and in 1930 output totaled 1.873.233 tons. The figures are compiled by the Amer- |ican Iran and Steel Institute. NEW YORK NEW YORK. April 18 (#) —Over-the- counter market : Quotations 2s of 2 BANK STOCKS o'clock. Bid. Asked. Bk Manhatt. Chase Natl ( Commercial : Fifth Ave (*44) First Natl (100) Natl City (1) .. Public 2) . TRUST COMPANIES. Bankers (1) = e * | Guaranty (20} Irving (1) IN'Y Title & Mtz |N ¥ Trust (5, : Title G & T (1.60) . United States (60 . “Includes extr: INVESTMENT TRUSTS NEW YORK. April 18 the-counter market: Quotations as o {12 o'clock. Bid. Asked. Am Bank_Stock 105~ 1.28 Bullock Pund. Cumulative Tr Sh Corporate Trust Corporate Trust A A’ Corp Tr A_A Mod . Corporate Trust. Accum Ser.. Corp Tr. Accum Ser Mod. (. —Over- | Mass Invest Tr Spencer Trask Fund. . Stund Collat Trust... .. Super of Am Tr A Super of Am Tr AA B Super of Am Tr Super of Am Tr B B Super of Am _Tr C.. Super of Am Tr D. Trust Fund Shrs Trusted Am Bk A Bank Stock Guide or lnl(llIFSSPQ!A‘PIRQll;(klh]‘!" and prospective purchasers. Free Upon Request George M. Ferris & Co., Inc. Washington B Nat. Secured by First Mortgages Safe—Conscrvative Wm. H. Saunders Co., Inc. REALTORS Dist. 1016 1519 K St. WHETHER IT'S A First Trust Loan on improved Real Estate INSURANCE of any kind REAL ESTATE you wish to sell or purchase INVESTMENT in 1st Mortgage Notes or Rental Property you cesire managed Consult Floyd E. Davis Co. 733 12th Street NW. @ NATL. 0353 R ESTABLISHED OVER 40 YEARS