Evening Star Newspaper, April 23, 1933, Page 53

ews of Markets Pages 1 to 4 Part 6—14 Pages BROKERS SWAMPED AS PUBLIC RUSHES BACK INTO MARKET Purchases of Securities Show No Lack of Funds Among Investors. SECURITY & TRUST CO. JOINS FEDERAL RESERVE Agents Here Write $13,185,000 New Insurance During “Finan- cial Independence Week.” BY EDWARD C. STONE. In a whirlwind finish yesterday Washington brokers wound up one of the busiest weeks since the record- smashing days just before the Wall Street crash in 1929. Almost out of a clear sky brokerage business here and all over the country assumed amazing proportions as stock quotations started wild advances. The advance in commodity prices, which had been going on for several days, caused the sudden swing back to stock trading. Then came the talk of inflation and the announcement regarding the gold standard. Almost instantly the local broker offices, in which there had been many vacant seats every day. were so jammed that it was difficult even to obtain standing rogm in the board rooms. While there was a mad rush to buy stocks and very heavy transactions in bonds, brokers reported that many of their clients took profits toward the end of the week. Caution is now the watchword, brokers assert, the lessons of 1929 not yet having been forgotten. The amount of funds available for in- vestment and speculation proved a surprise, since it had been frequently claimed that the market could not stage an advance because of practi- cally no buying power. ‘What the big markets may do during the coming economic conferences is the subject of greatest conjecture ‘Time alone will tell. In regard to possibilities it is interesting to note that after Great Britain went off the gold standard in 1931, British common stocks on the London Stock Exchange advanced 26 per cent to April 20, 1933, while in the same period Ameri- can common stocks dropped 45 per cent. Joins Federal Reserve Sysiem. Announcement was made at the Treasury yesterday that the American Security & Trust Co. of this city had been admitted to membership in the Federal Reserve System. It is the first bank in Washington to join the Federal Reserve since thc present campaign was started to get banks all over the country to take out such membership. However, the local wrust eompany had decided to enter the Federal Reserve before the Nation- wide drive was started. All national banks are compelled to be members of the Federal Reserve System, but membership is optional ‘with trust companies and State banks. ‘These banks may join by qualifying for such membership by depositing the Tequired reserves, etc. The American Security & Trust Co. will enjoy all the benefits of Federal Reserve membership, such as borrow- ing directly from the Federal Reserve Bank of Richmond and being granted other wide benking powers. Corcoran Thom is president of the trust company, which has a capitaliza- tion of £3,400.000. Deposits on the controller’s last bank call on Decem- ber 31, 1932, totaled $31,480.002.64. Insurance Boom in District. John L. McElfresh, chairman of the District Life Underwriters’ Association Committee on “Financial Independence Week” yesterday announced the results of the drive during the past six days by &ll_the insurance men in Washington. During the period 453 applications for life insurance were written by the va- rious offices. The total amount in- volved in these aplications was $13.- | 185000, the chairman stated. This is considered & remarkably satisfactory return for & city the size of the Na- tional Capital. It far exceeded expec- tations, agents freely admit. They also state that it required some very stren- uous efforts on their part. Insurance men here also consider that Washington made a good showing in new business during March, reports this week showing a total of $3,407.000 in policies being written, 30 per cent' under the same month a year ago. ‘Washington's percentage figure was the same as the average for the whole United States. Junior Bankers Announce Debates. The annual public speaking contest of Washington Chapter, American In- stitute of Banking, will be held in the chapter rooms, Bond Building, Four- teenth street and New York avenue northwest, tomorrow at 8 p.m. ‘The winner of the local contest will be awarded the Bank President's “Trophy for one year, and will represent ‘Washington Chapter in the A. P. Giannini District Contest to be held in ‘Washington on May 6. In the District contest on May 6 institute members from chapters in Delaware, District of Columbia, Maryland, New Jersey. North Carolina. Pennsylvania, Virginia and ‘West Virginia wiil compete for the honor of representing this district in shs finals at the Chicago convention in June. ‘The judges of the local contest will be Maurice Rosenberg, Bank of Commerce & Savings; Elmer Louis Kayser, director, division of uni- versity and extension students, George ‘Washington University, and Raymond B. Dickey, Washington attorney, dean of the faculty of Washington Chapter. Aubrey O. Dooley, Public Speaking-Debate will preside. Would Guarantee Deposits. Another bill favoring quick payments ©of deposits in fuil in all cases of banks which have suspended business has been introduced in Congress by Repre- sentative Carter of California. The Government would make no con- tributions, & fund being established by mmhuuom from Federal Reserve and leral Reserve member banks. If a bank is closed, up to $50 would be ?ud to depositors at the end ‘of the first week, the same the second and third weeks, and the full deposit paid 8t the end of the fourth week if the bank is still closed. The Federal Reserve Board would be empowered to borrow up to $500,000,000 ' réspol from the R. F. C.. from member or from the Federal Treasury. Rapid Transit Earnings Improve. The Washington Rapid Transit Co. has filed its March financial statement with the Public Utilities Cq 3 yevealing a deficit in net income of $3,860.66 for March in comparison with deflcit of $6,463.19 in the correspond- g month a yesr ago. The bus com- pany also made & good deal better s president of the ! chairman of the' Committee, | Discusses Credit FIFTH DISTRICT BANK VISITS TREASURY. GEORGE J. SEAY, Governor of the Federal Reserve bank of Richmond, who was called here to conter on stimulating the flow of money into business, the problem of closed banks and other vital financial matters. Governors of most of the other Reserve banks were also present, as were R. F.C. officials. INVESTMENT BOND PRICES DEPRESSED DURING PAST WEEK Inflation Proposals Result in Selling of Prime Securities. Special Dispatch to The Star. NEW YORK, April 22.—Wall Street was agitated this week by speculation over what form of inflation will event- ually become effective in the United States and predictions as to what it will do to securities and commodities. While prices were rising for stocks and commodities, the bond market did not boil upwards excepting a few groups. High-grade bonds were sold. Second and third grade speculative descriptions and the bonds, both internal and ex- ternal of the countries whose curren- cies were rising against the dollar, ad- vanced sharply. Bond trading rose from a daily average of between $8,000.000 and $10,000,000 a day to about $20,~ 000,000. Decline in Governments. ‘The weakness of United States Gov- ernment bonds was caused by exactly the same factof¥ that' affected cor- porations and municipal bonds. It had nothing to do with the security behind the bonds or the ability of the borrow- ing corporations or governments to pay their interest and meet maturities. It was a result of liquidation for the ac- counts of investors who believed that inflation is here and that bonds of the highest grades should be sold because of the ultimate reduction in the pur- chasing power of the income derived from them. Inflation may take one of a number of forms. The most popular theory is that the administration will undertake at the coming international conferences in Washington to do something for sil- ver and then make an agreement with the nations of the world to set up a plan to stabilize all currencies. This would naturally have to include those nations, like China, that are on a silver basis. Another theory as to inflation is based on the Thomas amendment to the farm relief bill and is, briefly. that the Treasury will print fiat money with which to meet all govermental expendi- tures and maturities. This scheme, of course. would result in uncontrollable inflation. Wall street does not believe this type of currency expansion would be permitted. It would bankrupt every insurance company, all savings banks, many commercial banks, and all in- vestment trusts placing their faith in bonds, and it would prostrate the in- ternational credit of the United States. Still another form of reflation or in- flation that is believed possible involves devaluation of the dollar. This might be effected by reducing the gold content of the dollar, by raising the price of | gold. or by reducing the legal minimum of gold reserves behind the National currency. Now, either the first scheme, of a managed international currency, or one of the three involving dollar devalua- tion would have the same effect mar- ketwise. England has already had a | similar experience. Let us assume, for | the purposes of illustration, that the i dollar is devalued 30 per cent. Then, | theoretically, stocks and all commodi- ties would advance by that amount, the cost of living would rise by a like per- centage, corporate earnings would in- crease, and the income from fixed in- terest bearing securities would pur- | chase only 70 per cent of what it would | before inflation. | Effect in England. Unfortunately for this theory. these things did not happen in England. | English stocks and commodities had | but a brief rise, the cost of living hard- | ily advanced at all and bonds, after a|{ brief period of unsettlement, recovered to money rate levels. It remains to be seen whether the experience of the United States is any different. (Copyright. 1933.) MONETARY GOLD STOCKS OF U. S. CONTINUE GAIN ! By the Associated Press. | _ Monetary gold stocks of the United States continued to rise during the | week ended April 19 as the change was | recorded by the Federal Reserve Board. ' are given for comparable periods, as announced by the board: Week ended April 19, $4,313,000,000. Previous week, $4,293,000,000. Same week last year, $4,377,000,000. showing the first three months of the present year than in the like od a year ago. The net loss in quarter of this. year totaled $15,572.22, compared with $23,509.75 in the cor- nding quarter of 1932. This was the first of the March utility state- ments to be filed with the commission. All the others are due this week. Heard in Financial District. Lawrence R. Leeby & Co., Southern Building, dealers in investment securi- ties, are distributing a et giving “A of the Bre: ustry as 8 G for Potential Investors.” the position of the In the table that follows the total stocks| & first | news to FINANCIAL AND CLASSIFIED Sunday Star Ch WA |ADVANGE IN STOCK MARKET PROMOTED BY GOLD EMBARGO Public Has Poured Funds Into Security Holdings Dur- _ing Past Week. CURRENCY LEGISLATION WILL CONTROL TRENDS Wall Street Anxiously Awaits Re- sults of International Conference on Economic Policies. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, April 22.—It is not pos- sible even now to comprehend the mag- nitude or the significance of the sensa- tional events that have taken place this week and from which the entire mone- tary position of the United States may be long influenced. ‘The violent fluctuations in securities, commodities and in the foreign ex- changes give a clue, After all, they represent the confused and almost panicky state of mind of a public sud- denly faced with a set of conditions that are intricate in their character and not easily understood. The ultimate trends in all kinds of values will be controlled nearly as much by what develops in Congress in the way of enactment or rejection of proposed currency measures. Wall Street is also anxiously awaiting such determination as is reached at the forthcoming economic conferences on tariffs sand international stabilization of gold Public Psychology Changes. ‘We had had for some weeks the ex- pectancy of inflation. This had been evidenced in commodities and in cer- tain types of securities. It immediately reached the proportions of & panic among those who were short of com- modities and securities when announce- ment was made on Wednesday that this country was to_abandon the gold standard and an effort made to raise the level of prices as a measure to counteract the processes of deflation. ‘The entire psychology of the pub- lic at once changed. Instead of hold- ing cash, which was the universal pas- sion a month age, it became popular to turn cash into securities of -the “equity” types. At the same time, as a phase of the “flight of capital” from the dollar, there was a tremendows de- mand for foreign securities issued in dollars, which recently were considered quite worthless, and, along with this, eagerness to open bank accounts in Canada and abroad. The discount on the dollar became greater than in the past 60 years, while the exchanges of European countries for ths. first time since revaluation after the war, rose above their parity. In effecting a rise in the price level there has been immediate suc- cess in those commodities that have the largest speculative following and whose influence on the most vocal groups of inflationists is greatest. The producer of wheat and cotton, as weil as of corn, silver and sugar, has over- night recovered a larger degree of pur- chasing power than he could have con- templated a month ago in s gradusl rise covering the remainder of this year. This helps to alleviate the dis- tress that confronted him and from which he was asking relief through various measures that would not only lift prices, but moderate his interest charges and the principal of his debt. On the opposite side of the situation we have the consumer with a fixed income and also obligations of a rigid type who must pay the higher prices for commodities out of an inelastic fund from wages, services or from & return on investments. Common Stocks in Favor. ‘The markets for securities have al- ready demonstrated that the sequel of all inflationary programs by govern- ments is to lift the prices of commodi- ties and common stocks and to depre- ciate the quoted values of certain classes of preferred stocks and bonds. Under such a condition the public in mass rushes to buy the one and to sell the other. It discriminates between groups, but not between individual members of groups. Naturally it chooses the common stocks of “corporations identified with commodities that are rising. It also prefers the shares of corporations re- lated to the major industries, on the expectation that, given an advance in the price level of commodities, there will be a steady expansion in the pur- chasing power of communities. This, in turn, is expected to be translated into more employment and again into more purchasing power. This class of common stocks is in no way regulated as to the amount of earnings that may be produced on it. Therefore it has an advantage, under present conditions, over the shares of railroads and public g;flifiu that llrei;‘&mml;. to return public regulati . ‘The dramatic announcement that the gold standard was to be abandoned by the United States stunned Europe as much as did the news from London in the Autumn of 1931 that Great Britain had suspended gold payments. This action has been construed as a major move in a campaign to take from Great Britain the advantage she has held over the United States in international trade since sterling went to a discount of nearly 30 per cent. To many. this like the first move in a trade war that will extend the period of ml%m— sion and to modify which it Roosevelt invited delegates from abroad to come here and discuss measures of relief. It will probably be found, after these conferences have been held, that a satisfactory understanding has been reached on the entire question and that no devaluation race is proposed. Favorable Developments. Apart from the movements in securi- ties based on inflation there have been number of developments this week that might have prompted purchases on their merit alone. The advance in the production of iron and steel to 23 per cent of capacity was the fourth in past month. unfavorable condi- tions to growing wheat and in the planting of Spring wheat had a mate effect an wheat prices, were many little straws in the trade indicate gradual recovery in different lines of industry. The week was distinctive for having had no im- portant dividend reductions. (Copyright. 1933.) World Zine Production. NEW YORK, April 22 (®.—World zin uction in 83,826 short tons, oy £ e aetil ooy SHINGTON, D. C, EMBARGO ON GOLD MAY BE DECLARED SHORTLY AT PARIS Effect of Y. S. Action on Franc Closely Watched by Financial Experts. HITLER ECONOMIC PLAN IS AWAITED IN GERMANY British Business Circles Are Gen- erally Encouraged by Improve- ment in Several Key Industries. Special Dispatch to The Star. NEW YORK, April 23.—Cables and wireless dispatches to the Business Week give the following survey of business abroad for the week ending today: Paris.—The decision of the United States to impose an embargo on gold was no surprise $o Paris, but there is no unity to the speculation as to what will be’the ultimate reaction on the French franc. It is widely expect- ed, however, that France—the last major bulwark of the gold standard— will be forced to clamp down & similar embargo, at least until her position can be defined. This should not imply that the Prench question the strength of their currency. It is pointed out in each heated argument that the position of the French is quite different than the British position when the pound ster- ling went off the gold standard, and the American position when the dollar went off ln'l'dfl mnr;h internal prices for major icultural mnnngned at artificially high levels by means of extremely high protective tar- iff walls. In many cases prices are double those on world markets. Par- ticularly has this protection applied to wheat. Thus, when the decline of the | dollar forces commodity prices up, France is little affected internally. French Monetary Position, In one respect the Prench are pleased that the embargo and the de- cline of the dollar has come now. It removes & tremendous burden from the shoulders of M. Herriot, France's repre- sentative to the informal Washington conferences. Now, they reason, the core of the conference will be a mone- tary question, rather than war debts and tariffs, in the discussion of either of which France is at a disadvantage. But in monetary matters Prance, last stronghold of the gold standard, thinks she can shine. Herriot will play the role of "M'f: e(!mkwut‘l exlt:‘lfi lent), for it ere be a flerce battle between the United States and Britain as to whether or not_sterling (including the whole bloc of 30 or more nations whose curren- cies are tied to the British pound) willingly or forcibly will be returned to gold standard rules. Business generally is little changed this week. The March foreign trade balarice still shows a large deficit. Un- employment is approximately the same as it was at this time last year, but con- tinuation of the Citroen (automobile) strikes indicates that workers are not yet reconciled to the idea of wage cuts which are now as necessary in France as they have proved to be in other countries affected earlier by the de- pression. Berlin.—German interest this week centered in the Hitler promise to an- plan for “the new deal.” It is to come in the form of a four-year plan for in- dustry and labor. He has promised that it will bring relief to farmers and ab- sorb the unemployed. These are his two first duties. After that, he is likely to press his plan for state reorgan! tion after the Mussolini model of a “‘corporate state.” Business activity has continued to re- flect seasonal recovery this week, but the public is losing hope for more than & seasonal gain until the new program scu under way. Securities markets re- lect persistent confidence, however, and the March foreign trade returns show an increase in exports which lifts the all-important (to the foreign creditor of mn) foreign trade surplus to $15,- Britons Encouraged. Expert demand for German automo- biles has declined seriously this year, but home demand has been stimulated since Chancellor Hitler de- creed complete freedom from automo- bile taxes on all new cars. Automobile shares have been in greater demand fol- lowing widespread discussion of the “motorization_of A London. — Easter, the first public holiday of the English year, fc closely (this year) by the announcement of the new budget, has a trick of in- augurating a change of mood. It marks & certain seasonal slowing down of business, but it provides a new starting point for plans and enterprises. Business leaders in commercial Lon- don are generally encouraged by the week’s developments. Steel production is increasing, rail traffic is heavier, shipbuilding in March showed a pick- up for the first March in three years and the output of electricity has estab- lished & new record. timism has been stirred by the nu- 102 MARYLAND BANKS {ON 100 PER CENT BASIS State Commission. Reports on Con- dition of Institutions Follow- ing Recent Holiday. Special Dispatch to The Star. nounce May 1 (German Labor day) his| greatly | Considerable op- | UNDAY MORNING, APRIL 23, 1933. CIRCUS TIME IS HERE (Copyright. 1933.) Classified Ads Pages S0 I8 Specisl Dispatch to The Star. H EW YORK, April 22.—That sec- tion of the farm bill which re- lates to the administration's Proj regarding inflation and which causes most anxiety directs the Secretary of the Treasury to authorize the issue of United States notes. ‘The feeling is that even with this high-sounding name they smell like 5 backs.” And “greenbacks” are popularly known as “fiat money.” It was the act of 1862 that first permitted the United States to issue notes of this character and to embark on an era of inflation which led to successive issues of irredeemable Government paper. Redemption Plan. The difference between the “green- backs” of earlier days and those that may become a financial expedient, in case other provisions in the farm bill are not workable, is in the proposal that the United States notes are to be redeemed annually at the rate of 4 per cent of the outstanding issue. They are to be legal tender for all public and private debts. They would be issued in denominations from $1 to $10,000 and for the Yu.rpo! “of meeting ma- eral obligations to repay sums purchasing United States bonds and United States.” The aggregate amount at any one time is not to exceed $3,000,000,000. It is to be hoped that an emergency will not arrive when recourse must be ‘made to financing Government require- ments by paper in this form. The effect of it has always been to depreciate all other kinds of currency and to drive | out good money by the weight of bad money. Furthermore, once started such an issue never seems to be in sufficient quantity to satisfy the cumulative de- other interest-bearing obligations of the | grou] FIAT MONEY PUTS BURDEN ON WAGE-EARNING CLASS ILal'ge Issuance of “Greenbacks” by Gov- ernment Raises Cost of Living at Expense of Workers. mand for it. And it does not do for | the public at large what its sponsors | claim for it. As an illustration, take the effect on g:lcu and wages during the “green- ck” period of the Civil War. The price of gold in currency rose from a premium of 3 per cent, shortly after the suspension of specie payments at the end of 1861, to 72 per cent in the early rt of 1863. In that year the price level, on the basis of 100 in 1860, had risen to 148.6, while the advance in wages had been only 10 per cent. In 1864 prices were 90 per cent higher than in 1660; wages were up only 25 per cent. With the purchasing power | of earnings greatly reduced, wage earn- ers carried the heaviest burdens of those days. This was especially true of Government employes and those who in this generation are described as the | “white-collar class.” Would Destroy Savings. ‘The span of 70 vears since the Civil ‘War has not produced economic changes that will prevent a similar burden on wage earners and the salaried class in the event that inflation becomes violent and uncontrollable. Not only that, but it will wipe out savings of those who have invested their funds in high-grade securities and mortgages and will only be of advantage to the speculative ips. This has been the uniform ef- fect of inflation in every nation that has finally yielded to its lure for cor- recting what has seemed to its people to be the unsupportable strain of years of deflation. An exception is the ex- perience of Great Britain. ‘The United States is in a peculiarly | strong position as to its gold holdings | and its trade balances. Therefore, con- fidence is felt in its ability to manage inflation rather than to become infla- tion's victim. (Oopyrisht, 1933.) ADVANCE IN COTTON { Market Rises, However, After Gov- ernment Declares Embargo on Gold—Trading Heavy. By the Associated Press. vanotd from 6.80 to 7.77 at the high level of Thursday morning, or nearly 1% cents above the low price touched on the reactions of late last month, as a result of covering and heavy general buying. Evidently this was sufficient to attract some Southern selling or price fixing, as well as active realizing. July sold off to 7.35 today, hut the lanting as a result of weather con- while low umperlt‘uul:l l‘nn said BRINGS OUT SELLING| COMMODITY PRICES CONTINUE TO CLIMB Advances in Farm Products Put Index on Higher Level Dur- ing Last Two Months. By the Associated Press. For the second econsecutive week, prices Yor farm products advanced the general level of commodity prices, as|by the ems measured by the National Fertiliser Association. Wheat, cotton, cattle, hogs, butter and feed stuffs all made noteworthy gains, and raised the index level of 57.1 per cent of the 1926-28 average, or one point higher than a month ago. The present level is 11 points higher than it was two months ago, and at at_62.3. During the week 10 of the 14 major index ‘were af- ’ood; fertilizer materials and mix fertilizer. None of these groups showed pronounced losses. With the exception of corn, rye, wool and apples, all farm products that showed price c!un(: advanced dur- ing the week. Other basic commodi- tles that gained included heavy melt- copper, silver, rubber Lower prices rule for calfskins, = LAW ON BUILDING - APPRAISALS URGED Contractors Seek ‘Blue-Sky’ Legislation on Realty Assets. By the Assoctated Press. Formal recommendations that the proposed national “blue sky” bill shall contain mandatory requirements for certified building appraisals in con- nection with real estate bond issues will be made by the governing board of the Associated General Contractors of America. The association declares that respon- sible contractors believe that such a provision would go far toward re-es- tablishing confidence in construction securities and would bring about an investment revival in projects necessary for the continued progress of the Na- tion and in relieving unemployment. “We propose,” 'ward J. Harding, managing director, declared, “that there be inserted in the act a require- ment that in {issues based on real estate mortgages, there shall be flled with the proper authority as a matter of public record a standardized form of consolidated appraisal, the same to be certified to by architects, engineess, general contractors, realtors and fiscal agents,. respectively, and that jes of such consolidated appraisals- be charge. This, we believe, will prevent the issuance of securities in exeessive amounts, which in the past frequently have been far in excess of any in- t;l‘mlc worth of the underlying prop- y.” Groundwork for the recommenda- tions will be laid at the annual meet- ing of the governing board of the as- sociation here on May 1. Other sub- jects to be discussed will be the launching of construction backed by Federal credit; the activities of allies of organized contractors as carried on through the Construction League of the United States; the new results of nego- tiations with surety companies lpoking toward more active co-operation in the improvement of surety bond writing; and numerous specific legislative pro- CURRENCY CIRCULATION GAINS $5,000,000 IN WEEK By the Assoclated Press. Actual circulation of the new cur- Tency was increased by $5,000,000,000 during the week ended April 19 to total $24,529,000. There is a total of $37,064,000 outstanding, but $12,585,.- mo! this nn‘:unt is held 'I,{ the Fed- ‘Reserve issuing bank. is backed by $46,552,000 of paper eligible act, includ- of the Minneapolis Reserve Bank em- ployed the new currency for the first time during the week, placing $20,000 in circulation collateraled by Government securities. Other Reserve districts which have taken advantage of the new currency privileges are Boston, New York, Phila- delphia, Cleveland and St. Louis, with New York accounting for more than half, having in actual circulation a total of $16,987,000 POTATO MARKET. CHICAGO, April 22 (P).—(U, 8. De- partment of Ml'lfll.‘tm. ) —Potatoes, 59; ergency ing $41,744,000 o(hnuncno‘muu Government. dy stocks, Wis- consin rotind white, few sales 75; Idaho russets mostly 1.40-145; Colorado Mg~ Clures, 1.50; Minnesota Red River Ohios, 70-75; new stock, supplies liberal, trad- ing moderate, market weaker; Texas bliss triumphs, No, 1, 2.40-2.55; No, 2, Sugar Melt. ORK, April 22 (P)—§t T i thls, SouTeY available to the public at a nominal | UPSWING IN TRADE WELL MAINTAINED INMANY SECTIONS Retail and Wholesale Lines Report Continuation of Recent Advances. INCREASE RUNS COUNTER TO SEASONAL FACTORS Public Buying Has Depleted Stocks of Goods on Merchants’ Shelves. Rural Business Gains. BY JOHN A. CRONE. Speeial Dispatch to The Star. NEW YORK, April 22.—Tr: retall and wholesale, unpro‘vdei h&u‘h ;:enkd cou:;nry to th; usual post-Easter , as the wave hasing co:tllnued. e of public purc] ong with trade betterms - pansion of some lines of m;ustrym Mthtreu was & burst of buying in commodities and securities. The latter directly re- flected the inflation proposals at Wash- ington, talk of diluting the gold eon- I;x: of the dollar, and the gold export The gold embargo caused the dollar to slump in terms of foreign currencies, but to the extent that the dollar's de- cline enables American exporters to compete on a better basis against other nations in world markets, it may prove 8 real benefit to commerce and trade. “Price-Fixing” Awaited. Meanwhile, business generally awaits constructive legislative measuyres de- signed to help large groups, ranging from farmers to manufacturers, by what, in effect, will be “legalized price- fixing.” Since many of these proposals have not yet been interpreted clearly by either the business or the financial worlds. it is impossible to forecast how long the advance in commodities or securities will continue. Leaders are fl:]t.sedd !h;'l]l,I defpile uncertainties, re- and wholesale trade has essed and industry expanded. e Neither the unfavorable weather nor the pre-Easter buying checked the pub- lic in its retail purchases of novelties, accessories, glassware, curtains, house- wares, jewelry, furniture, paints, wall- paper and garden materials. “With mail and telegraphic orders reaching the highest point of the year last week.” said Dun & Bradstreet, Inc., in their weekly review today “it was ex- pected that activity would drop per- ceptibly in wholesale markets. Such was not the case. however, as the quantities of merchandise ordered by mail this week showed less of a post- Easter reduction than normally. The number of out-of-town buyers registered here exceeded that of a week ago. This was rather natural in view of the observance of religious holidays and the brisk retail trade necessitating the presence of full store staffs at home. Many of them reported sell-outs of pre- Easter merchandise. The result is that they are now ready to push fresh mer- chandise. Stores scheduling promotions of cut- price garments are not finding such goods easily, for t‘)e simple reason that, unlike a year ago, manufacturers did not make goods for stocks this year. As a_result, makers have clean shelves, which means that firmer price trends are shown in many of the women's ap- parel lines. “Reports from salesmen on the road.” jaccording to Nation-wide surveys of {Dun & Bradstreet, “indicate that rural ! sections were in better buying mood | than had been noticed at any time this year. Advancing prices for farm produce are helping the agricultural communi- i ties, and with rural banks reopening after a prolonged moratorium, it is ex- | pected that the volume of buying by rural and semi-rural merchants will . increase steadily during the next month ,and a half. In addition to groceries 1and foodstuffs, orders for which ad- vanced fully 2 per cent, it was & good | week for ready-to-wear clothing, milli- ;nmery and shoes, with most of the itravelers’ orders specifying prompt | shipment.” In men's clothing the demand for topcoats continuedgbrisk. The cotton trade is all excited about National Cot- ton week, for some 30,000 reailers have promised to participate in the program scheduled for next month. Gains Continue. ‘The automotive, steel, metal and lumber industries continue to report In electrical goods manufactur- ing the refrigeration branch seems to be the only unit that really is busy. Crude oil shows a further decline in | production, and gasoline inventories are | decreasing. The silk industry is slightly more active. In the glass industry de- | mand comes chiefly from brewers and automotive makers, with no signs yet of any improvement coming from the construction trades. (Copyright, 1933.) STOCKHOLDERS SHOW FAITH IN COMPANIES "Public Makes Allowances for Dif- i ficulties in Maintaining Earn- ing Power of Firms. By the Associated Press. NEW YORK, April 22.—Spring’s mel- as been absent from amiable toward executives in spite dividend cuts and dividend eliminations. lers at most of the elections of impor- tant companies have sought to make things as comfortable as possible for management by eschewing that “why- ] dlfln&tzou-do-bemr-tot-wx-compnn" 1t is true the American Tobacco meet- last week lacked the tioned. The showed not the s bacl Gividend intentions: B el ‘I-ufl‘l &8 &% preylous /‘ g