Evening Star Newspaper, May 7, 1933, Page 53

News of Markets Pages 1 to 4 Part 6—14 Pages UPTURN IN TRADING AGTIVITY 1S NOTED - FINANCIAL AND CLASSIFIED' he Sunday Star WASHINGTON, D. C, EXPANSION IN BUSINESS CONTINUES DURING WEEK Aut omotive and Lumber Output at Year’s ON LOCAL MARKET| Peak—Other Lines Show Brisk Gains as Commodities Rise. Demand for Bonds and Stocks Has Shown Marked Improvement. BANKERS ARE IMPRESSED BY SISSON’S ADDRESS Head of Association Believes Eco- nomic Tide Has Turned. Compares Systems. BY EDWARD C. STONE. Marked revival of interest has re- cently been developing in connection with securities listed on the Washington Stock Exchange. Ever since the ending of the national Bank holiday and the reopening of the New York and Washington Stock Ex- thanges, busizess or the local board has proved more satisfactory. Feverish trading during recent ses- sions of the New York Stock Exchange has turned attention to the stocks and bonds in general and other exchanges have profited by this increased activity, Washington among them. More activity has been shown in nearly all the local listed bonds. So far this year the largest trading in any one bond issue has been in Washington Gas Light 5s, 1958, a comparatively new issue. Georgetown Gas Light 5s have also been in the limelight. Next in popularity have been Wash- ington Railway & Electric 4s, 1952; Capital Traction 5s have appeared in the trading quite often and generdbus interest has been displayed in Wash- | ington Gas Light 6s, series B. Poto- mac Electric Power issues have not been forgotten, both these bonds selling far above par. Local Market Trend Upward. In the stock division the largest amount of trading has been in Wash- ington Railway & Eleetric preferred, which closed the week at 80. Next comes Potomac Electric Powet 51 per cent preferred, which is selling above 106. Capital Traction, which has been quiet awaiting definite merger yesults, recently got away from its low for the year, the last sale being at 6%3. ‘The highest priced local stock at present is Potomac Electric Power 6 per_cent preferred which last moved at 108%. In the miscellaneous list, Mer- genthaler Linotype has recently dis- played better strength. Peoples Drug Stores preferred appeared on the board during the week, following the quarterly report which revealed a slight gain in earnings over the corresponding period @ year ago. The stock now ylelds. 8.6 per cent. Lanston Monotype is now selling at 45. The exchange has just received notice of the declaration of the regu- lar quarterly dividend of $1 per share, to stockholders of ‘The recent trend of the local market has been upward. Many local issues never took such a tumble as most of the New York stocks experienced after the 1929 break. So it is easier for them to come back. Incidentally, there are about as many local stocks selling above $100 per share as there are on the New York Exchange, an amazing statement considering the hundreds and hundreds of issues on the Wall Street board. But e glance at the New York list shows 1t is true. Sisson Cheerful Over Outlook. Bankers are commenting on the bril- Hant address which President Francis H. Sisson, of the American Bankers' Assoctation, made before the United States Chamber of Commerce. He takes a hopeful view of the outlook, declares the ebb economic tide has turned and i3 coming toward shore. In conclud- ing his remarks, Mr. Sisson said: “I want to say this, that I feel and know a great many thoughtful students of the situation feel that the ebb tide has turned. Far out at sea it is as yet but if it isn’t restrained unduly by ‘some haphazard legislation and re- stricted action, that ebb tide is coming back for sure in due course just a&s surely as it went out. The great power ding its course and of bringing it back to its safe harbor lies very largely with our Federal Government today. The task is theirs and it isn’t so much & constructive task as a negative task | of not doing fool things that will keep | it from doing its normal and national and absolutely certain performance of | natural laws. “I think we may somewhat liken our situation to the old English story of King Canute who stood at the shore and tried to sweep the tide back with | | 1, a broom, that neither the Pederal Gov- | di: ernment nor anybody else’is going to be able to keep it back, but we want it to come in as soon as it may and as helpfully as possible.” Banking Systems Compared. At one point in his address Mr. Sis- son made a8 most interesting compari- son_of banking systems when he said: “We are told many times of the model which the Canadian and English systems set up to us. Well, there again consider the political aspects of it. In England, there are five great banks that control the banking business of the British Isles. Can you image allowing five great New York banks to control the banking business of the United States? Some of the United States Senators, whom you and I all know, would lose their ‘voices in wrath and expostulation the next day if it were even suggested. It just isn't possible in our political system to concentrate ‘wealth and power in such a manner. “But there again that is political and not economic. The bankers know what | the right thing is and would do it! efficlently and on the whole effectively | for the country if they had the privi- Jege of doing it. The reason they are ot allowed that privilege is because ! we built our scheme bf Government on | this system of 48 States and the Federal ! Government, and we surrounded the ‘banking business with 49 different kinds of laws and restrictions which make ' it impossible for it to operate effec- tively as organized business ought. That | is the fundamental difficulty in our | whole situation. I assure you that it 1s not with banking connivance or in Bccordance with banking judgment. “In the Cenadian system you have the central government standing abso- | lutely behind its banking system. They have nine banks in Canada which real- ly handle the whole situation with branches scattered all over the coun- try. They’have had fio failure for a number of yegrs. It is idle to talk mbout their mot having had any fail. { band wagon” in a period They have had several very disas- trous failures, eight or ten years ), the Home Bank, the Merchants’ and the Bank Natiqpale. They curled up s disastrously as some of ours have,” Mr. Sisson asserted. Sales of G. C. Murphy Co. for April totaled $1,628,753 against $1,488.333 in April, 1932, & of 9.4 per cent. the first sales were just \ For | have expressed much ¢ below ' the plan. BY JOHN A. CRONE. Special Dispatch to The Star. EW YORK, May 6.—National| business continued to expand this week, causing gains in em- ployment, retail and wholesale trade and car lofidings. Lumber and automotive production reached a new peak for the year, elec- trical consumption showed the smallest recession for any week to date, and commercial solven- cies recorded a sharp decline. ‘The rapid man- ier in which Con- gress carried out the more impor- tant parts of Pres- ident Roosevelt's recovery program, the progress of the international con- versations at Wash- ington, and the President’s plans for industry and the railroads added to the general brightness of the business scene. Markets Stimulated. ‘The inflation bill stimulated com- modity and security markets. It nat- urally caused much shifting of money from banks to raw materials and fab- ricated products, in the wholesale and jobbing centers, but it is too early to say how much of the present retail purchases are based on the prospect of higher retail prices. General business betterment resulted from delayed retail buying. In fact. public purchasing has steadily picked up since Easter. % The first important upward revision | of tire prices in nearly eight years nat- urally brought out advance purchasing John A. Crome. ‘pledruooflmm tion in prices in Summer, buying of wearing apparel only for current needs. Some of the bigger department and g to bankers, have set aside special which staple-and standard goods of all descriptions—that 1is, where the ele- ments of fashion and style do not en- ter—might be bought ahead so that these stores might profit from the gen- eral inflationary movement. Ideal " Spring weather in some sec- ylng of women’s wear, men’s clothing, hardware, garden tools and groceries, provs be the best of any week in 1933. House furnishings, carpets, rugs and paints also moved briskly. Despite the broader buying, retailers in most cases have not yet marked up It rather It has checked clearance | prices. The inflation talk has I | the number of promotional sales. | has tended to emphasize qualit than price. sales. Activity Above Normal. “The fact that activity in wholesale markets is continuing above the nor- mal season level,” Dun & Bradstreet state, “with buying prolonged far be- yond the usual limits, cannot be at- tributed solely to the desire to cover future requirements. For the reports from salesmen on the road indicate that the orders placed are for actual requirements. “The furniture trade, which has been in the doldrums for a rather long time, now is giving evidence of some recovery; there is a better demand and dealers’ stocks are low. Refrigeration equipment houses report further im- provement, although competition in the industry is keen; some plants have doubled their output of last season.” (Copyright, 1933.) CARLOADINGS GAIN FORWEEK 542,706 Best Report in Months Made | by American Railway Association. By the Assoclated Press. “The leavening influence of beer and brightening business brought the most | optimistic carloading report from the American Railway Association yester-| Lanston Chairman DIRECTORS AGAIN HONOR LOCAL FINANCIER. ay that has come in many montbs. % The Teport, which is taken generally as an indication of business trends,| showed 42,706 more cars loaded during | the week of April 29 than had been| during the preceding week. The figure was still 18,521 under the same week of | last year, however. The largest increase was shown In miscellaneous merchandise loadings | which includes beer shipments. This increase was 21,052 cars over the pre- ceding week and 6,573 above the same | week of the previous year. The report also showed increases in grain, ore and coke shipments over the corresponding weeks in 1932 and 1931 The decrease in all loadings from 1932 was the smallest this year. | Officials of the car service division sald their reports from throughout the country indicated a general pick-up in | the steel industry which would account | for the increase over last year in iron ore and coke loadings. There have been | slight increases reported prior to !.hm" week. | ‘The grand total of 41,514 cars was an_increase of 6781 over the week ended April 22; 8749 over the corre- sponding week last year and 4,589 over 1931, the first time that a full week’s loadings has shown an increase over 1931 in the last 16 months. ‘This was attributed by Railway As- sociation officials to the increase in grain prices and to the demand by brewers. Railroad officials said the real index of buying throughout the Nation was less than carlot merchandice loadings, which showed an increase of 1,978 over the preceding week, but still was 22 951 under last year. They pointed out, however, that increases in such classi- fications as coke, ore, grain and mis- cellaneous freight usually preceded a pick-up in less than carlot merchan- se. While declaring this report the most optimistic in over a year, railroad offi- cials said figures for the week ended May 6 must be awaited to deiermine whether the increases signified & real upward swing in business. WAGE INCREASE GRANTED BY DETROIT CORPORATION By the Assoclated Press. DETROIT, May 6.—Ira Copeland, president of the American Store Equip- ment Corporation, announced today that wages of all employes of the De- troit, Muskegon and New York branches of the corporation and its subsidiary, the American Bar Equipment Co., will be increased 10 per cent, effective Mon- day. About 400 employes are affected, Mr. Copeland said. “We feel it is the logical move to in- crease wages and spur on business re- covery, now that it has started, instead of lett! wages wait until everything else has cared for,” he said. Holland Gold Ban Denied. AMSTERDAM, Holland, May 6 (#).— The president of the Bank of Nether- lands, Dr. L. J. A. Trip, declared today that rumors that Holland is contem- plating an embargo on gold exports is “complete nonsense.” Sterling exchange was quoted at noon 3 ~ at 8.371, guilders, and later advanced M: to 8.60, due to a speculative movement against the guilder. the record of a year record shows the trend has turned. United Business , Boston, fore- casts that businéss volumes in May will be larger than in April, because there is always a tendency “to get on the of rising prices. Retall trade is also expected to increase because of seasonal reasons. The definite g;:pos-l made to stock- holders of the nklin National Bank, by the officials in their efforts to re- open the bank, have met with the approval of a number of depos- itors. Some of depositors ago. The April J. THILMAN HENDRICK, Elected head of the board of the Lan- ston Monotype Machine Co. at the an: nual meeting ,held here, has been a guiding spirit in the company for years and is a former District loner. ‘While the Lanston plant is in adel- phia, the stock is very widely held in Washington. VIRGINIA TOBACCO BRINGS $5,483,242 Season’s Sales Reach 63,020,968 Pounds at Average of $8.70 Per Hundred. By the Assoclated Press. RICHMOND, Va., May 6.—Virginia tobacco producers realized $5,483,242 on all types and grades of tobacco during the past season, reports of the commis- sioner of agriculture showed today. Bales amounted to 63,020,968 pounds, for an average of $8.70 per hundred pounds. The 1932 crop was the small- est since 1876, and while prices were higher than in the previous season the average price was the lowest since 1 with the exception of 1931-32, Flue-cured sales amounted to 432,796.- 623 pounds at an average of $8.11, against 69,652,779 at an average of $7.03 for the preceding year. Fire-cured sales amounted to 13,276,960, the small- est of any year for which records are available (since 1909). The average price was $8.19, against $4.94 the pre- vious year for 26,900,611 inds. Burley sales amount to 5,755,418 pounds at an average of $14.74, com- pared with the previous season’s sales of 7:952,657 at an average of $9.11. Sun- cured sales, amounti to only 1,191.- 967 pounds, the smallest since 1909, averaged $6.57, against $5.76 for the 1931 crop. Danville led the State's mrg;;.s in vzlume vgm & total of 24,- X pounds, ran far ahead of South Boston, with 71.1';35 P VIRGINIA BANK RECORD BETTER THAN AVERAGE By the Associated Press. LEXINGTON, Va., May 6.—A study of Virginia banks during the depression was presented here before the Virginia Sg:lnl Science Association by Dr. = ley D. Southworth, professor of eco- nomics of the College of William and ary. Dr. Southworth's study showed that ot ayetass Toosse frors bask suspen. average rom banl B sions were‘:’lllhfly more than 40 cents $100 of deposits, while the Virginia ks lost little more than half this proportion, 23 cents. per year. CHICAGO DAIRY MARKET. CHICAGO, May 6 (#).—Butter—Re- ceipts, 10,582 tubs; firmer; creamery specials (93 score), 22%a33; (92), 22; extra firsts (90-91), 21%3; firsts (88-89), 21; standards (90, cen- + cases; er; Fraded firsts, 102 o0 19% receipts, 13; storage packed storage packed extras, 15%, reported . extras | Jargest number ADVANCE N TOCK | PRCES CONTINES DURING PAST WEEK Markets Pushed to Higher Levels by Passage of In- flation Measures. PRIME BONDS HAVE HELD STRONG UPWARD TREND Movement Reflects Activities of Government in Attempting to Balance the Budget. BY CHARLES F. SPEARE. Special Dispatch to The Star. y NEW YORK, May 6.—There have been curious inconsistencies in the mar- ket for securities this week. These have led to more confusion of mind among those who are watching prices as an index of what inflation might do to them. Under inflation, common _stocks should advance. This they have done to a remarksble extent, so that today scores are quoted 100 to 200 per cent over their low levels of the year. It is also logical under the same set of cir- cumstances for bonds, either in default or on which interest is still being paid by the grace of lenders, to rise as their prospects of covering their charges im- prove—if inflation is the proper cure for sickly corporations. They, too, have doubled and trebled in price. Treasury Issues Advance. On the other hand, inflation, pro- duced either by an expansion in the currency or by raising the price level through a devaluation of the dollar, should effect an adverse change in the status of high-grade railroad and public utility bonds as well as in the obliga- tions of the Government. The fact is, however, that this last group of securi- tles has maintained a strong position throughout the period of debate on in- flation, with all of the long-term United States Treasury loans in great demand at _rising prices. This phase of the investment market conforms with the trend of Govern- ment obligations while France was de; valuing her currency a few years Then French national issues maintained their old market values. It also agrees with the record of British funds after England went off the gold basis. To a certain extent it reflects the improved status of all three governments in bringing their budgets to a balance and thereby creating the primary condition from which all national credit is fixed. been alarmed over the possible effect of in- flation on securities that have been made the foundation of the investment porfolios of individuals and institutions. It is insi that this country must raise the price level in order to lift the burden from debtors and to prevent a crisis that would imperil world civili- zation. It is maintained that the pres- ent price level cannot sustain the ex- isting debt structure. The propaganda for inflation is at times as irresistible as was that promoted for political pur- poses during the war. The strength of the position of the political leaders s inflation Tests on the weariness of the people after a four-year struggle against losses of all sorts and their impatience for the dawning of a new day. 'rhe{ are not satisfied to wait while natural forces bring about s change. Possibly they do not sense the improvement that has recently taken place in many di- rections, Commodities Up Sharply. Substantial progress, however, has al- AN SUNDAY MORNING, MAY 7, 1933. AMBITIOUS DE Q .’! 1 Classified Ads Pages 5 to TREASURY FACING REFUNDING TASKS $13,385,926,450 of Debts Must Be Handled With- in Five Years. BY CHAS. P. SHAEFFER, Associated Press Business Writer. One of the major fiscal problems con- | fronting the Government is funding of $13,385,926,450 of falling due during the the re- indebted- next five years. ‘This outstanding obligation is made up of all classes of borrowings, but the most important item in the entire }'roup is $6,268,095,250, representing the fourth Liberty Loan of 1933-38, bear- ing interest at the rate of 4%, per cent. ‘The remainder consists of notes, cer- tificates and bills of the Treasury, r!g; resenting its short-term debt. cluded in the total is $4,075,677,200 of notes with maturities beginning May 2, 1934, up to February 1, 1938; $2,123, 785,000 of certificates and $918,372,000 of relatively small issues of Treasury ready been made in lifting the level | pijis of prices. On March 15, when the banks reopened, Moody's commodity index st at 88.1. This week it was above 108. In the same period Sep- tember wheat has risen from 55 cents a bushel to 76 cents and September corn from S1 to 43 cents. Wheat is now higher than it has been since 1931. Cettan futures were quoted at 61 cents a pound on March 15 and are now at 9 cents, a better return to the mduur than he has realized since September. Silk futures have ad- vanced from $1.15 to $1.55, copper metal on the Exchange has gone from 4% cents a pound to 6% cents. Along with this is a recovery in the iron and steel industry from a 15 per cent level in the middle of March-to one of 30 per cent this week and a sub- stantial rise in the price of scrap iron. ‘The most interesting feature of this week's market has been the activity and strength in railroad common stocks and in railroad junior bonds. This may be to a considerable extent sepa- rated from any inflationary influence. It is predicted on the sound theory that the railroads have entered an era in which they will accommodate them- selves to new,conditions, instead of ig- noring them, dnd will receive the bene- fits of legislation permitting them to operate with freedom from restrictions that have long held down their net re- turns. (Copyright, 1933.) CANADA BANK FINDS CROPS 3 WEEKS LATE Special Dispatch to The Star. ] MONTREAL, May 6.—In its first crop report for the season, the Bank of Montreal reports that agricultural oper- ations throughout the Dominion, owing to a backward Spring, have been de- layed from one to three weeks later than usual, but conditions in other re- spects, especially in regard to moisture, are generally favorable. In the Prairie Provinces the seed bed generally is in good condition and moisture conditions are better than for the past few years, but warm weather is needed to promote growth. Pastures in most parts of the Dominion have Wintered well, but in Southern Sas- Katchewan and Manitobs 1t is reported | 7, The largest Treasury note issue out- standing is $834,401,500, maturing Sep- tember 15, 1937, and ring _interest at the rate of 3% per cent. In addi- tion, there is an issue of $508,328,900 of 3 per cent notes falling due April 15, 1937, as well as $5Q0,000,000 of 27% per cent notes ma in May, 1936. All Treasury bill issues outstanding are for amounts of approximately $100,- for the purpose for current needs. These, it is e ted, will be the first class of obligation to be discontinued if and when the budget of the United States becomes balanced. DOLLAR WHEAT TALK IS HEARD IN PITS Large-Scale Public Buying Has Lifted All Grains and Provisions. By the Associated Press. CHICAGO, May 6.—"“Dollar-a-bushel wheat” is now the slogan of speculative buyers who take infiation as their guide. Some large operators add that should anything seriously adverse happen to the 1933 Spring crop of the United States and Canada there is no telling how high wheat will go. They ify, however, an important proviso—namely, that public buying continue on the big scale that has been the rule of late. Compared to & week ago, wheat this morning was 8Y,a8% cents a bushel higher, with rye 9%all cents up, corn at 7%a87% gain, oats lifted 2%a3% and pmv'lllon.l showing a rise of 32 to 57 cents. Optimists relative to inflation as a wheat price stimulus point out that foreign markets are beginning to re- spond more actively to quotation upturns in the United States, and that Winni- peg, Rotterdam, Buenos Aires and Liver- pool have all been developing strength. In some quarters this is en &s con- firming talk that a tendency toward world inflation exists. Partioular sig- is attached by many to the that growth so far has been negligible. | agvanced f: 117 BANKS REOPENED DURING THE PAST WEEK o By the Associated Press. NEW YORK, May 6.—During the past week 117 banks reopened on an un- restricted basis, the American Banker today. This is by far the of weekly resumptions lm’le’ehemm‘ % berh‘ol reopenings, numi says the publication, indicates rapid in the bank reconstruction pro- bilitation to 10 cents higher than a week ago. e MONETARY GOLD STOCKS INCREASE DURING WEEK ‘B the Associated Press. Monetary gold stocks of the United States showed & tht upward trend during the week ended May 3 as change was measured by the Fede: Reserve Board. In the table that f lows the total gold stocks are given for comparable periods, as announced Stock Rise Adds Nearly 7 Billions To By the Assoc! oted Values| 1ated Press. NEW YORK, May 6.—The April rise in the stock market added nearly $7,000,000,000 - to_the value of shares listed on the New York Stock Ex- chn'fi‘ aceor to the exch 's monthly compilaf announced 3 The 1,221 issues listed had a May 1 aggregate value of $26,815,110,054, com- pared with $19.914.893,399 at the be- ginning of April. The average price rose to $20.73 a share from $1541, LIVE STOCK MARKET Steers, Hogs and Lambs Show Price Gains Dur- ing Week. BY FRANK R. WELLER, Associated Press Parm Editor. A much livelier cattle market than continued liberal receipts and the slug- gish condition of the dressed trade would suggest, has led some observers 1o believe that consumption is assuming & broader scope. Com with previous years supply figures are not excessive; but consumer | demand was broader then. The as- sumption that it is increasing was based on the fact that as many or more cat- tle than has shown up in recent weeks turned readily this week and at prices varying 25 to 40 cents higher around the circuit. Hog prices gained 5 to 20 cents and sheep 10 to 50 cents, all according to the individual market, despite the fact fresh pork prices declined at Eastern centers and the aggressiveness displayed by shippers last week almost entirely disappeared in sheep and lambs. Some attributed much of the upturn in live- stock values to the inflationary wave which has stimulated numerous other commodities. The Chicago top on steers stopped at $7, 10 cents under a week ago, but the trade showed willingness to pay $7.25 for prime offerings—a commentary on the short run of choice light cattle. The steer trade is a $4.50 to $6 affair, the advance showing in the fact that the practical stopping point has been ad- vanced from $6.25 to $6.50. Because values continued to creep up- ward in the face of sluggishness in the dressed market, numerous attempts were made to depress prices, but sales- mendw:lr:- bullish at times and de- manc ys proved as broad or a lit- tle broader than the supply. NEW LUMBER BUSINESS SHOWS LARGE INCREASE By the Associated Press. New business booked at lum- ber mills during the week en April 29 was not only heavier than any pre- viaus week of 3!31,”2\5 ‘Was greater than any week two in Begm.nben s making this announcement the National Lumber Manufacturers’ Asso- ciation said orders amounted to 186,- 487,000 feet, or 38 per cent higher than for the same week Iast year. mlfi‘]‘: a wl 163,676,000 feet. Glass Demand Improves. prove- ment in demand for plate and window glass was quite noticeable in the past Furniture Sales Increase, NEW YORK, May 6 (#).—Stores of Summer ing niture ticularly =2 s good buyer interest, porch, lawn and b-nhm HAS BETTER TONE ==: FARM CASH INGOME 1S SHARPLY HIGHER March Figures Are 17 Per Cent Above Low Point in February. Svecial Dispatch to The Star. CHICAGO, May 6.—The cash income of farmers during the month of March, poin, Tached 'l Pepruary. ‘accsrding | reac] . according to estimates made by the State Street | Research and Management Corporation in conjunction with the Corn Industries Foundation, who base their studies on the estimated actual sales of enough selected farm staples to make up & 71 per cent sample of the total cash income from all farm produce. “Stimulated by moderate price im- provement in several major farm com- modities,” says the estimate, ‘“March cash income rose about 17 per cent above the February low and brought the accumulated total for the first three months of the year to about $775,000,- 000 for all United States farm cash in- come. This is a decline of about 22 per cent from the same period of last year and & decline of 65 per cent from the first quarter of 1929.” It is pointed out that cash income of farmers is not to be confused with gross income, which includes the mar- ket value of produce used by farmers and their families and on which the Defi;mn.ment of Agriculture released an est] for 1932 last week. The De- partment placed gross income for the past ~ year at $5,143,000.000, whereas actual cash income during the same period amounted to approximately $4,200,000,000. Cash income is a closer measure of the actual volume of farm purchasing power and the ability of the farmer to pay taxes, debts and other charges than is income. “The improvement t appears in the March figures resulting from mod- erately increased prices for cotton, corn, wheat, cattle and hogs, without doubt has favorably influenced cash in- come totals for April,” say the research organizations. “It seems clear, how- ever, that although the immediate re- sult of inflationary sentiment is bene- ficial to prices, any normal improve- ment in farm cash income as a whole will await the execution of farm legis- lation and a reasonable test of the operation of the Government program.” ADVANCE IN COTTON IS WELL MAINTAINED Buyers Become More Confident as Market Forges Ahead at Re- cent Sessions. By the Assoctated Press. NEW YORK, May 6—The increased activity and strength of the cotton mar- ket here during the past week has been attributed to a further broadening of general interest based chiefly upon the progress of the farm relief bill and its inflationary features. Advances in securities and other commodity mar- kets have contributed to the confidence of bufin.fvhl(l’e the demand for cotton probably found some eneouragement in talk of unfavorable prospects for the new crop _start, rts of continued firmness in the goods market and a disposition to somewhat increase estimated of end-season consumption in this country as a result of increasing Southern' mill activity. PFirmness in Liverpool and further depreciation in the dollar by sterling ex: been con! oh the vance, which carried the price of July contracts here up to approximately the 834-cent level or about $11 per bale/ above the low price touched on the re- ! action of late last E | Reports continue to indicate inten- in the South. | wm:fid mu::n”g vity In fertilisers. expected at 8 per cent, and there Iterated increased acti 13 :JNRL_J FOREIGN FINANCIAL WORLD IS LOOKING T0LONDON PARLEY Depression Talk Subsides in France as Commodities Show Upward Trend. BRITISH MARKETS RISE ON NEW BUDGET PLANS Bullish Facters Also Supplied by Recent Trade Pacts With Den- mark and Argentine. Special Dispatch to The Star. NEW YORK, May 6.—Cables and wireless dispatches to the Business Week give the following survey of business abroad for the week ending today: Paris—France is going in for inflae tion. Comodity prices are throwing off depression ballast. So are stocks. The Bourse has been booming all week. Only government bo: m’g:: m?:& nds got tangled Te a reason. France, the technically still on the gold mfi; knows that the old standard is gone. Only techpically will the treasury pay out gold francs. Actually, one can't get to the gold. Britain has found it to her advantage not to try. And the pound sterling is in the best position to raid Paris. Prance and Britain are obviously going to stick together om manetary ‘1::;:‘ a;; the French resl- ‘coun ready t into the revaluation line llgnxo‘:"lgg Britain and the United Stal only a matter of time. S TE Signs of Trade Upturn. s:fmflcml that Paris is talking cpenlg the futility of holding th: World Economic Conference in June unless there is some previous three-way 18 Tatio befween steving. the ‘Sotr ween and the franc. e G , there were concrete signs val g whju&lfly th: . March iron an steel production have just been dis- closed, and the records show marked improvement. Steel output ran to 586,000 tons, which is 18 per cent above the February total, and is the highest monthly output since October, 1931. Iron production jumped 525,000 tons, up 12 per cent on February, and the highest since December, 1931. Since the first of the year seven furnaces have been blown in, making the total now operating 85. Unemployment is London.—Since England has heard details of the new national budget and because they are no more drastic than was 5 ‘h:hz b\xxm"" has re- characterized t e Ihe’ ot It is meay be a battle between the dollar and the pound, but the auspicious begin- nings of the Washington conversations have helped to make London optimistic over the possible good results of the World Economic Conference. Also bull factors were the announce- ments of the new trade accords with Depmark and the Argentine. By the terms of the new Anglo-Danish trade agreement, British coal, coke, steel mesh and jute Denmark duty free. In return the Danes are promised quotas on bacon, ham and eggs, which are only a little smaller than the annual exports to Britain in the last three years. The Argentine treaty assures Britain an increased share in the foreign ex- change regularly available in Buenos Aires, and the new £10,000,000 loan is reported to be for use in England for paying interest to British holders of Argentine sterling securities. In.—Hitler made one of the smart- est moves since he became chancellor when he turned May 1, the day when Communists in Germany have been ac- customed to demonstrate and win a hearing, into & nation-wide celebration g:thercmplgh victory of the Nazis. A y o es was climaxed with an address gy “the leader.” It was a memorable day, marking the monapoly of Nazi power over all of Germany. Germans expected Hitler's speech in the great Tempelhof arena at the end of the day to outline for them an economic program toward which they would all strive during the coming year. They were disappointed. There was the usual magnetic Hitler oratory, but no definite program. Features of Schedule. Features of the vague economic schedule were compulsory labor service for young Germans (so they will re- spect manual labor from having had a share in it), an appeal for a “buy now” campaign, more urging that indi- viduals feel it a personal responsibility to help find work for the unemployed, the promise of a mtnszm ‘works prognmhunp]nnx an i gram. the protection and aid that is to be given to small business. Stocks rose sharply, bonds slumped, on his reference to “an absolutely nec. essary reduction in interest rates.” Bondholders expect mortgage rates to be cut. Industrialists that German re for debt reduction will open oreign markets, so that Germans can at least sell enough abroad to meet their interest obligation. VIRGINIA MANGANESE MINES TO BE REOPENED Bpecial Dispatch to The Star. ‘WINCHESTER. Va., May 6—Largs in Prederic) manganese mines Shenandoah Counties, idle most of the time since the World War, are to be reopened soon, it was understood here today. It was sald that terms of the recently enacted appropriations bill, re- iring all materials for Government purchased, if possible, in sountry, will result in a definite £ tnd” the ‘conseqient reoperiog ot e _consequen the Virginia Valley mines. RISE IN SILVER PRICES STIRS WESTERN TOWNS Bpectal Dispatch to The Star. SAN FRANCISCO, May 6.—Enlivened by ithe announcements of mine opera- tors from Virginia City, Nev., to But& Mont., that production will be resum on the approach of 40-cent silver, many “ghost towns” of the old West are