Evening Star Newspaper, June 25, 1933, Page 51

News of Markets Pages 1 to 4 FINANCIAL AND CLASSIFIED he Sundiy Stad Classified Ads Pages 4 to 12 Part 6—12 Pages WASHI NGTON, D. C, SUNDAY MORNING, JUNE 25, 1933. VOLUME OF SALES OND. C. EXCHANGE PASSES 1932 MARK First Half Year’s Business and Price Levels Are Pleas- ing to Officials. LAIDLAW & CO.COMPLETES NEW BROKER OFFICES Bank Association Head Soon to Name Committee Chairmen for Coming Year. | Trading on the Washington Stock | Exchange during the first six months of 1933 has been well ahead of business transacted in_ the like period in 1932 Cemparison shows substantial gains in bond trading and in many stocks. Offi- cials of the exchange naturally are | pleased with the half year's resuits The pick-up in business on the local exchange of course indicates gradual 24th Election GATLEY AGAIN GUARDS BANK ASSOCIATION FUNDS. ALBERT S. GATLEY, Who was returned to the treasurer’s office at the recent annual meeting of the District Bankers' Association at the Columbia Country Club. As usual, his annual report ignored the depression and showed a good balance on hand. He is executive vice president of the Lincoln National Bank AUTO SALES PUSH improvement in business conditions in the Capital. The fact that volume has | outdistanced the record of a year Bgo’ reveals a new interest in local invest ments, which the general depression | 0 _cramped for a time. ! Bonds have played a particularly im- | portant part in the market activity of the past few months. The largest amount of trading has been in Wask- ington Gas Light refunding 5s, 1958, a new issue, which proved very popular. With a few days still to go to July, there has been a turnover in these bonds totaling $320,000. Georgetown Gas Light first 55 and Potomac Electric Power consolidated 55 have also drawn special attention in the past few months. Washington Railway Electric 4s, 1951, have been even more favored, the turnover so far this year reaching $104.500. Gas 6s, se- ries B, appeared on the board almost daily, while Gas 6s, series A, were among the most active bonds in the list up to the time they were redeemed. Switch- ing from this issue into longer term investments was a substantial help.to market trading. Local Stocks Popular. Local stocks have also been in good demand in the last six months. The largest share turnover has been in Potomac Electric Power 5': per cent preferred, 1,208 shares changing hands | S0 far this year. Washington Railway | & Electric preferred has enjoyed sales totaling 846 shares. Next in importance among the util- y stocks has been Potomac Electric Power 5!, per cent preferred. Capi- tal Traction has seen 875 ShaTes—SOM 1" although many holders are keeping their stock pending the merger of the local street car lines and the exchange of stock in connection with that move. | In the miscellaneous division Mer- genthaler Linotype and Lahston Monc- type have been the most active. Peo-, ples Drug Stores preferred has come | to light recently after being quiet for | some time. Prices in both local bonds and stocks have held up well, many PRODUCTION WITh NO SIGN OF SLUMP Next Six Months’ Total May Equal Amazing Level of First Half. BY EDWARD W. MORRISON. Special Dispatch to The Sta DETROIT, June 24—All signs for the automobile industry still point to “full steam ahead.” In the light of the mounting bank of dealer orders, there will be no de- cline next month from the heavy June output totals. If any changes are made in production levels for July, these will be in the direction of speed- ing up assembly lines rather than slow- ing them down. The public appetite for small, light cars appears far from satisfied. The three largest producers — Chevrolet, Ford and Plymouth—are already lay- ing out their schedules for July and they are keeping in mind the buying mood which bas seized the Nation as they make their plans. | Schedules Speeded Up. All three of these manufacturers found it necessary to increase their June schedules right in the midst of production. A fair estimate of their output for June reads like this: Chev- rolet. 85,000: Ford, 50.000: Plymouth. 35.000. This approximate total of 170.000 will represent almost 70 per cent of the output for the whole in- dustry. now being close to the high mark for the year. The present officers of the Exchange | are C. H. Gockeler, president; Y. E.| Booker, vice president; Karl W. Corby, | secretary, and James M, Johnston, | treasurer, Laidlaw & Co. Installs New Board. | With the installation of a new quo-| tation board over the week end and| completion of other office arrange. ments the Capital office of Laidlaw & Co.. members of the New York Stock | Exchange, which recently was opened | at 727 Fifteenth street, under the man- | agement of G. Bowie Chipman, is one | of the most spacious and completely | €quipped brokerage offices south of New | ork fr. Chipman announced yesterday the following associates in his.| ormer office are on the staff of the new Laidlaw office here: L. W. Todd, | Jesse L. Suter, Fred J. Marble. J. L, | Leverton, Philip P. Friediander and C B Hilliard, cashier | > Laidlaw office opened last week old Swartzell, Rheem & Hensey g, which lends itself excep- well to the requirements of | rodern brokerage service. The new board occupies the south wall of the lass-ceilinged room and exemplifies | features of st ard con- with excell ing_and lity from ts of the som Independent Audits Spreading. ago 500 corporate r mall_listed and of th ptants, for t or fiscal years then h w to discoveri = ac- found Washington s had given the reports by to a report s that 391 ck-up of 500 companies for the caler 1932, or the fiscal years showed that the majority with reports to stock- holders of 406 independent audits, or a gain of 3 per cent in confromity wunl @ growing public demand. storkholders | 15 companies had joined The busiest places in Detroit right now are the offices of the purchasing sgents, particularly of those compa- nies which are expanding output. Much of the buyving that is being done is made only to meet current needs. With each jump in output, the purchasing agents find it necessary to make swift commitments. Last Fall a number of companies made heavy purchases at ow prices, but these have almost’ all gone into new cars. Estimates are being made that as much as 45 per cent of the 1933 out. put will be achieved during the second half of the year. Should Ford bring out new models during the late Sum- mer or early Fall, an almost even division between the two halves of the | year might be seen. Truck Sales Maintained. This would be almost unprecedented. ; since for the last five years the bulk of the year's output has been created | | in the Spring months. Last vear hard- Iy more than 30 per cent of the cars were produced after July 1 Enlarged sales of trucks continue to present a favorable picture of business conditions. Truck sales are. in fact, also expected to hold up during the second half of the year “Better cotton prices are helping sales in the South, and betier prices for farm products are stimulating ac- tivity in the west,” says Cram’s automotive reports “It is probable that more trucks will in the second half of this year 1 in the first half. Sales for the first s'x months will total about 100,000, approximately the same figure record- i ed for the first half of 1932. half reach b> an_increase of ver 1932.” e, 1 ORDERS AT LOW POINT By the Associated Press EW YORK. June teel 7 ir and were 24 the lowest to! tor and istics Institute ¢ tion, which says that s publi~ work gram s reverse the trend. June Ycungst ce will be he active list Monday. putting tion 46 of the 83 furnaces in Odd-Lot Brokers ‘ Rushed by Orders | Of Small Buyers Specin! Dispatch to The Star i N YORK. June 24 —The . e been rushed X this month as public has its_place longside of as 2 buyers ks Teport nsiderable withdrawal of de- posits. persumably for the pur- pose of investing in securities on the theory that “equities” have a better outlook under inflation than money in the bank. (Copyright. 19:33.) 1f sales | 120,000 the ! I con- showed a ! i 1s IBRIISH BUSINESS | STILL GAINING, BUT AT REDUCED PACE I Leaders Hope for Ultimate! Stabilization of Dollar. ‘ Uncertainty Felt. FRENCH JOBS INCREASE, .REICH LULL APPEARS Official Paris Newspaper Calls Par- ley a Disillusion—German Slump Laid to Politics. s | Special Dispatch to The Star NEW YORK. June 24.—Cables and wireless dispatches to Business Week give the following survey of business abroad for the week ending today: London —British business is under the influence of the conference and so is less buoyant this week than it has been, though the tone still is good Both stocks and commodities lagged during the days when stabilization of world currencies was rumored, but both soared later as the dollar sagged. This new price rise is largely artificial. Un- employment is declining slowly, and iron and steel production is slightly up, but progress is slow. Most en- couraging signs of recovery are still the reports from the northern manu- facturing regions that industry, long depressed, is steadily improving Pessimism was general when the sta- bilization rumor was blasted. A good ! deal of interest now is attached to the coming visit of Prof. Moley. It is hoped that there will be some agreement among the central banks to keep the dollar, unofficially, within an agreed price range. French Disillusioned. Paris.—French reaction to the World Economic Conference is expressed tvp- ically in Le Temps, official daily news- paper, this week: “It would be diffi- cult not to recognize tha! the London Conference is a disillusion, at least for those who have placed any hope in it of arriving at a solution of the international economic puzzle.” France's stubborn demands for a re- turn to the gold standard as a pre-, requisite to all other accomplishments at London have brought no results. Stabilization, which for a few days was reported possible, has again fallen | into the background. The uniting of efforts to raise prices now occupies first attention. Business meanwhile is unchanged. Unemployment continues to decline slowly. Industrial activity is greater than a year ago, but there is no marked activity. The Bourse was quiet this week. Berlin Trading Lags. Berlin—Germany has been strongly influenced by political developments this week. Securities have sagged as a result, and industrial recovery lagged. Outstanding developments from the domestic point of view were the de- flant moves by Chancellor Dollfuss of Austria_to curb all Nazi activities within his country. Penalties for any breach of the chancellor's demands are drastic: Germans are enraged. The Dollfuss government represents, to the Germans. the French influence in Aus- tria which prevented the Anschluss two yéars ago and which now prevents closer ties between the two countrie: Foreign trade returns for May, jus announced. show a vast unexpecte improvement. Despite the various boy- cotts against German goods, exports are up 11 per cent. Imporis increased 4 per cent, showing a reviving de- mand for raw materials for industry. Americans in Berlin are considerably nterested in recent Woolworth adver- tising. There are more than 80 stores in the Woolworth chain in Germany. Several new stores which were to be opened this Spring were not allowed to open due to the Hitler ban prohib- iting all new retail stores, but particu- larly new department stores and new units in a chain. ‘Woolworth Plea Issued. From the first there has been no special prohibition on Woolworth as a foreign store. Legislation has applied equally to all chains. Woolworth, nev- ertheless, is making a definite appeal for German sympathy in recent ad- vertising. Featured in advertisements this week were the reports that the | Woolworth Co. bought more than $7,000,000 worth of German goods for consumption in Woolworth stores other countries; that more than per cent of the goods sold in W worth stores in Germanyv are of G man origin; that Woolworth pays Ges man landlords each year in rent more | { than $1.000,000: that Woolworth pro- i vides jobs for more than 4,000 Germaa employes. \GOLD HOARD AIDS BANK OF ENGLAND Largest Reserves in Its History Represent Amazing Recovery | From Sag in 1931. | | By the Aszociated Press { Gold reserves of the Bank of England i are now at the highest peak in her his- | tory, the Federal Reserve Bulletin for | June revealing a total of $904,872,000 as { of last April 30 e Bulletin also showed that Brit- during May the basis of ates. indicating a total of $1.€00.000.000. e figures poriray a magnificent : for Great Britain when it is reserves of gol $656,092.000 at the 1931, which saw the ndard in that coun- try. The total at the end of Avril com- pares with $587,951.000 on the corre- sponding date a year ago. World gold production ports of gold 82,000, on close of September end cf the gold st in 1932 at- 000.000. the Federal Reserve Board re- ports, surpassing the previous peak year, 1915, by $27.000.000. of leading petroleum units, SOUTHERN DAIRIES HAS | LOSS DURING YEAR particularly Special Dispatch to The Star. EW YORK. June 2¢—The report ,of Southern Dairies. Inc., and subsid- { faries ntrolled by National Dairy Products Corporation) for year ended December 31, 1932, shows net loss of 1$330.78) after taxes. depreciation, in- | terest and subsidiary preferred divi- { dencs. A loss of $165.471 on property sold or abandoned was charged against ! mand FIVE MAIN GOALS SEEN N INDUSTRY CONTROL PROGRAM Spread Work, Higher Wages, Minimum Prices and Quotas Cited. WAR ON DISTRIBUTION EVILS RELD LATER AIM Economist Declares Business Should Quit Fearing Labor Clauses and Prepare for Benefits. Special Dispatch to The Star. NEW YORK, June 24.—The national industrial recovery act calls for five main lines of action, four of which the Government is stressing at the present time, according to Edgar L. Heermance, industrial econcmist of New Haven, Conn. “The act aims to regulate hours by agreement so as to spread work,” Mr. Heermance said in an interview here today. - “It authorizes the raising of wages to increase purchasing power. It permits the producer to charge mini- mum prices. It allows the setting of production quotas to approximate de- Eventually it will regulate un- fair practices in the distribution of goods." Mr. Heermance, author of the recent book, “Can Business Govern Itself?” a study of industrial planning, has spent the last 10 years in research on the trade association movement in this country on which he has come to be recognized as an authority. “The industrial recovery act.” Mr. Heermance explained, “will add to general purchasing power not cnly by spreading employment, through the re- duction of hours, but by actual increase of wages for the shorter working week The average business man is dazed by this act. His chiel reaction is worry over the labor clauses in the law. Labor, however, will not be allowed to interfere with the primary purposes of the act, for there will be no extortions through unionization man should forget the labor side of it and throw his whole energies into the new privileges given to bim by the Government. Minimums Provided. “Manufacturers will be permitted to set minimum prices. Heretcfore some lines of American business have tried to agree on actual prices just as the German cartel or the English trade associatlon.tried to do. This is diffi- cult, almost impossible, because price is 2 mechanism to adjust demand and supply and as such a mechanism it cannot be pegged. “There is no freedom to fix prices under the recovery act. There is to be an agreement on minimum prices. This is important because some manu- facturers now are selling below costs. While business men cannot agree on actual prices, they can rule out selling below ccsts through the setting of minimum_quotations. “The first problem here is to fix the minimum price. Assume a eertain Frice line for an industry. Some manufacturers are bound .to produce below that line of costs, others just abcut on the line and others above it. The problem, then, is to reach a mean, strike an average which will show costs that will permit a profit on the minimum prices. At that level some business men will be either put out of business or compelled to bring their costs within the defined range. This minimum price will work cut in a trade where there are not too many small, high-cost manufacturers. If there are too many such turers there will be much bootlegging of prices ume of production to keep it in balance with what people will buy. This will require industrial budgeting—that is, budgeting by whole industries rather than merely by companies. This will be a complex problem, for it will mean the extension of scientific management 10 an entire trade. There are'in the United States al 500 trade asso- clations of manufacturers representing, verhaps, 1,000 fairly distinct lines of products. PFifty out of the thousand— certainly not more than that—are pre- pared for budgeting in some form. Quota Plan Proposed. “An industry proposes to set up with the co-operation of the Government a national quota which will be based on a certain period. perhaps the preduc- 1 season. The various divisions of he industry will then have to decide on Low much each division can pro- duce and in turn the diviston will have to allot preduction to individual com- panies. Once that production quota is set it will become law and violators | will be subject to penalties “There are two difficulties with this. First, this industry is not prepared to set a future quota, for it has neither <he technical staff ncr the technique, 450 it will have to guess and its guess may what be either high or low. Second, should each unit's quota be and n such quota be enforced? manufacturer will be com- pelled io report all sales by sending a duplicate sales slip to his trade asso- ciation. Furthermore, every business man will have to make out regular re- ports on the schedule of working hours, wages paid, costs—a subject that the average business man does not now—and shipments, which in many never have been tabirlated “The prcblem right now before the average trade association is to educate the small business man in what the industrial recovery act calls for. This means that the little business man will e to iearn something about cost accounting, statistical reports and busi- ess management.” 4Copyright, 1933.) {RULING ON PARAMOUNT jtained the new high figure of $495.-| INTERESTS D. C. HOLDERS Local holders of stock in the Para which states that Referee Henry K. Davis has handed down an order con- firming the position of the trustees of Paramount-Publix Corporation in con- tinuing the operations and contracts of the solvent subsidiaries of the company This order is regarded by the manage- ment as important, since it maies pos- sible the orderly carrying on of the business of the company without re- ! ferring all action to the court. This_stock was taken off the New York Stock Exchange board several deficit account. For year ended De- cember 31, 1931, net loss was $64.879. exclusive of loss of $189,205 on sale of capital asseta. weeks ago and is now quoted on the Produce Exchange. Years ago it was the leading picture stock on the “big board.” ‘The business | manufac- | “Business will be able to control vol- | h | which are now carrying on the business. i SEEMS AS IF SOMEBODY DID SAY SOMETHING ABOUT THEIR COMING TO VISIT US THIS SUMMER. WAIT ‘TILL WE GET SOMETHING Oty AND WE’LL RIGHT DOWN UPTURN IS MARKED INSHPPIG HORLD Navy Program Spurs Yards. Gains Also Shown in Traffic Handled. Special Dispatch to The Star. NEW YORK, June 24.—The shipping world, salt water and fresh water, building and transportation, is looking up. The United States Government is starting a naval construction pro- gram; the first barge fleet from New | Orleans has arrived in Chicago; the { first vessel en route from New York to { Milwaukee, via the Great Lakes, has !boocked a capacity return cargo of i beer, and intercoast freight trade and | transatlantic passenger business is im- proving, according to steamship circles here. The merchant marine usually Is ex- pected to help the Navy. but tables have been reversed with the allocation | Wednesday of the first four ships to the Portsmouth, N. H.; Charleston, S. C. and New York Navy Yards, un- der ‘the Government program which calls for the building of 32, vessels These will take three years to construct and cost about $259.000,000. 40,000 to Get Jobs. Three objects will be accomplished | by the naval program. It will keep the shipyards going. keep intact the skilled personnel of shipyards, and save the merchant marine Work now being undertaken the Government will require about 52,000 men, or 40.000 more than now em- ployed. About 12,000 will be at work in “ravy yards and about 14.000 in | private ‘vards. with industries allied to shipbuilding requiring around 26,000 men Atlantic Coast shipyards expected to submit bids for the Navy's ships in- clude: Newport News (Va.) Shipbuild- ing & Dry Docks Co.. Bethlehem Ship- building Corporation, Quincy, Mass.; Federal Shipbuilding & Dry Dock Co., Kearny, N. J.. Maryland Dry Docks Co.. Baltimore; Pusey & Jones Corpo- ration, Wilmington, Del. and United Dry Docks., Inc.. and New York Ship- building Co.. both of New York. On the Pacific Coast, General Engineering & Dry Docks Co. and Bethlehem Ship- building Corporation, San _Francisco. and Todd Dry Docks. Inc., Seattle, are expected to submit bids. | Naval Program Helps. The naval program is bound to en- courage the building up of the Ameri- can merchant marine. This was al- | ready indicated today as the trade + here learned that Sun Oil Co. is start- | ing work on two tankers, that a con- tract has been placed by the Bull Line, and that projects of the Swayne & Hoyt and Savannah Lines soon may be placed. Operation of the Mississippi barge line to Chicago and the New York- Great Lakes-Milwaukee line marks a trend to inland ports. Albany. N. Y.. for instance, is taking quite a little traffic out of this port now. as ocean- going vessels steam directly up the Hudson. This year there has been a marked Iinuvase in travel in American ships, both in the transatlantic and South American trade. Value of exports and !imports through Baltimore ' Mirroring the stepping up of steel opera- tions, there was greater activity on the , Great Lakes, especially in ore traffic. | Ninety ore vessels were in commission mount-Publix Corporation will be much | last week, against 67 a vear ago. Forty | interested in a dispatch from New York, 'now are actually carrying ore, against | 15 a year ago | (Copyright, FURNITURE INDUSTRY SETS ORDERS RECORD By the Associated Press. | NEW YORK, June 24 —May was the best month for the furniture industry since September, 1932, says the current bulletin of Seidma; Seidman, ac- 1923 increased. | WHY I8 T WORLD DionT THEY TELL US THEY WERE COMING? WEVE LET The COOK GO AND MAVNT A BE Jil Code Expected To Increase Prices And Boost Shares FAVORABLE BOND: e * WARKET EXPECTED NEW YORK, June 24— Belief is ex- | | pressed that with the formulation of | | the code for the ofl industry now being | drawn by leaders in the trade, another | advance in crude oil prices is in near- | term prospect. With this possibility in mind, a good | deal of study is being given the position | of leading petroleum unts, particularly With a view to sizing up their inven- | | tory standings. € | " Oil prices recently have been at the | BY BYRON SELLER. lowest 1‘;1"”5 in h“‘g"-“" lt“d "“io"'tm?‘ | Special Dispatch to The Star. panies lave proceedes o adjust the | value of their inventories accordingly.| NEW YORK, June 24.—Although the As prices recover they naturally stand | trade news contlnued to be predomi- to benefit through a reversal of the | nanuy bullish the investment market D e et o the |displased a_hesitating tone at times list with inventories equivalent to $11.22 gfif\'?“-‘,,'"fhfafi;, \;:;elg o pm‘x“gm nv;hgfe- }o:::‘ réo:;orgii;: ise;‘:ogé lsan?n ‘s?rn hesitating phase was discernible more share and Standard Oil of Ohio third | through decreased volume than in any with the equivalent of §7.72 & share. | unsettlement of s ( Strength Held Vital to Aid Government’s Plans for Recovery. | covery in business is to continue, the | : . 2 TH EORISTS D".'FER | losses in the initial months of the year | will certainly be wiped out. Any other presumpticn is impossible in the face ON STOCKS’ TREND of the many demonstrations of the administration’s ability and determina- st i“m’ to put through its program of | i | recovery. The outlook for all bonds Some Fear Reaction and Others save the highest grade issues, whose | prices are contingent on money rates, | should therefore be favorable. | In fact, a strong bond market is a | orime requisite of the recovery program. | The Government cannot by itself finance — |all_industry. It must help the bond market to get back to a point where corporate financing, now impossible, can be acccmplished at reasonable in- terest rates. To this end the Government bond market has been dressed up and will continue 1o be supported by the Fed- cral Reserve's open market policy. Al- though trading has been quieter, the prices of Government bonds remain around their highs of early June. The recently issued five-year 2755 are qucted at a premium. By the first of August the market will know whether or not the response of in- dustry to the recovery measures is to be sufficient to enable the markets to carry themselves. Upon this hinges the Treasury's course in financing. for it will be in August that the heaviest demands under the public werks pro- gram and the industry control bill will be made upon the Treasury. (Copyright. 1933.) Spurn Caution, but Both Agree on Long-Term Rise. By the Associated Press. | NEW YORK, June 24—Arguments on ‘“‘corrective reactions,” ‘“resistance levels” and “world prices” are engaging Well Street analysts. but. outside of the consensus _that the trend apparently is upward—at least for the “long pull’— opinions and theories are extremely varied While one school of theorists holds that present prices must ultimately ad- just themselves to a probable slowing down of industrial improvement some time between now and Fall, others hold that the country is in the early stages of a real cyclical upswing in business which will experience only temporary and unimportant halts until the so- called “normal” operations of 1926 are reached. It is pointed out that on a gold dollar basis the present industrial stock averages are actually below the peak of last September and only around the low pomtvs of eaxl}; 1932, ) 1STERLING No:r LIKELY 'EGGS AND BUTTER i TO GO WITH DOLLAR | By Cable to The Star. | REACH NEW PEAK LONDON, June 24 —There is no pos- | sibility that sterling will follow the dol- |lar. The British treasury is still hos- — tile to definite stabilization, but the Bank of England is strong enough to keep sterling pegged to the franc for | the time being. Orders to Highest Prices of Year | 'Tne franc is not entirely safe. as Lon- | don support was necessary this week, on Chicago Market. but there is confidence that the French | R | government will maintain a hard fight | to protect it. Meanwhile, seasonal payments start- Heavy Buying Sweeps Future By the Associated Press. the CHICAGO. June 24.—Heavy buying ing soon are expected to check the de- butter to the highest prices of the year will be no intervention by the British on the Mercantile Exchange toda pound in butter and from !, to 1 cent dollar and the franc. |a dozen in eggs (Copyright. 1933.) 3 cents a pound, up i cent, with the November at 243, June eggs’ closed o | SLIGHTLY IN HALF YEAR . - J By the Associated Press. . Silver Styles Broadened. . for 13\ American refineries from Jan- NEW YORK. June 24 (A).—Manu-|uary ] to June 17 totaled 1765.000 long | will offer wider variety of styles and | 1932 period. Deliveries of 1,570,000 tons | patterns in Fall lines this year. Con- | compared with 1,515,000 a year ago. merchandise is planned. Interest in vewter hollow ware continues light. | - SCRANTON, Pa. July 24 (#)—Two Store Sales Still Lag. | silk_companies in’ Scranton and one NEW YORK, June 24.—Safeway | in wages for their emploves ranging Employes of .| exchange fund to check the autumnal | MARKETS REFLECT UNGERTAIN COURSE AT LONDON PARLEY Stocks Not as Responsive to Bullish Trade News After Long Rise. INDUSTRY MAINTAINS RAPID IMPROVEMENT Inflation on Top of Natural Ad- vance Expected to Place Wage Earner in Difficult Position. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, June 24—It has been made clear this week that the major purpose of the Roosevelt administration is to raise the price level in the United States and defer ccnsideration of other economic policies until this has been accomplished Consequently the dollar is now at the greatest discount since the country went off gold and there is less evidence that stabilization of the currency is to be attempted cr seriously discussed by the American delegates to the London Economic Conference. The American delegation has been split apart by the contradictory views of its members, the one internationally inclined and the other strongly coma mitted to a natiosalist policy. In this atmosphere of doubt and dis- agreement the markets have pursued an uneven course. Because they have had such a substantial rise in the lasy three months they are not so responsivey to bullish news as they were. also is a growing doubt as to the abil- ity of the administration successfully to carry on a recovery program that involve so many new policies and must be handled with such delicacy. Await Inflation Moves. Outwardly markets have been im- pelled by the expectancy of inflation. Actually there has been little done to promote inflation. The Federal Re- serve purchases of Government securi ties have been comparatively small. _The machinery of the various infla- tion acts has not been set in motion, nor will it be for some weeks. Securi- ties. commodities and trade have been taking care of themselves, responding to_natural conditions. It is not accurate to presume that those who are buying securities are !unpelled wholly by the inflation mo- tive. They believe that the natural !recovery in business conditions makes many common stocks and junior bonds reasonably safe as i the promise of dividends resumed and interest fully earned. Commodities that have declined in price below the cost of production are likewise regarded as desirable, especially if measures are adopted to maintain a more perfect balance between output and consump- tion. ~The logical sequel of deflation I is a period of price advances that may be too rapid and too extreme in rela- | tio to recovery. This always has oc- curred without inflation. Despite these facts there is every in- dication that the legal forces of infla- tion are to be set in motion and that it is the intention of this country to promote a rather violent rise in’ the price level. The burden will be ca: ried by wage earners and those de- | pendent on small incomes, for costs will rise faster and further than com- pensation for labor or for services. Trade Picture Brightens. Iron and steel production has reached the 50 per cent level, being higher than since April, 1931. Output of elec- | tric power is greater than it has been since January, 1932, and within 2 per cent of the total of two years ago. Car loadings in the third week of this month were nearly 14 per cent over those a year ago. Outside of New York, where they are affected by the huge turnover on the Stock Exchange, b;;\i’k clearings are in excess of June, 1932. Retail prices have advanced after a four-year decline. The department stores are_making the best showing in months. Even the long stagnant build- ing industry is beginning to show of life. The Department of Labor esti- mates that 1,000,000 persons have been re-employed since the end of April. With the year's wheat crop likely to be the smallest since the early 90s, the question of the existing supply is not so important. It will be difficult, however, to control production if this shortage and inflation methods force | the price above a dollar a bushel. Clearing up the debris after the bank holiday is a siow and unsatisfactory process. There still are about 5,000 banks either closed or under restric- tions. No closed bank is so badly off that 1it could not disburse at least 10 per cent to fits creditors. Yet there are Ihundl’ecls whose quick assets with a good market represent 50 per cent of deposits, that have not paid out a penny. The controller of the currency and every State banking superintendent has ’(he power to compel the conservators or receivers of banks under their ju- risdiction to declare prompt dividends to depositors. This they should do. (Copyright, 1933.) |U. S. BUSINESS CALLED | BIGGEST RECOVERY AID Special Dispatch to The Star. ' BOSTON, June 24—The World Eco- nomic Conference will probably drag along for a long time, with protracted Jjockeying for position, says the United Business Service of Boston. Net results of the conference are likely to be of far less importance to American busi- | ness than the domestic recovery meas- i ures of the administration. These have got off to a fine start, the service comments, and business volumes are continuing to mount, with increased buying reported in practically all lines. The New Deal is creating purchasing ability by transferring power from tax- payers to producers. HOPES FOR $1 WHEAT BRIGHTEN AT CHICAGO By the Associated Press CHICAGO, June 24—Prospects took on a new sparkle today for dollar- bushel wheat Word that the Chicago Board of Trade would begin on Monday 0 quote regularly the price of wheat deliverable next May aroused immediate specula- tion as to how soon the blackboards would chalk up the farmers' old-time ideal: “Wheat, May, $1.00.” Some enthusiasts suggested the | countants to the industry. New orders June 17 aggregated $16.843,735, a de- | received during the month were 61 per | crease of 5.1 per cent from a year ago. | cent greater than in May, 1932, and 49 The company operated 3,315 units in per cent more than in April, 1933, 1t |the recent period, as compared with was reported. 3,460 in the 1932 interval, swept all future deliveries of eggs and | cline of the dollar naturally and there Gains ranged from ', to !, cents a | depreciation of sterling against The June delivery of butter closed at | - . at 14, up a full cent, with the October NEW YORK, June 24.—Sugar melt | | tacturers of stiver-plated hofiow Ware | tons as against 1,695.000 in the same centraticn on low and medium price . Silk Plants Raise Pay. in Taylor today announced increases Stores’ sales in the four weeks ended | from 10 to 15 per cent. been given a | the Canova Silk Co. have answer lay in the fact that May, 1934, 15 per_cent boost. while employes of [ wheat contracts already have changed Carol Silk_Corporation, Scranton, and | hands here at around 90 cents, and Plymouth Silk Mill, Taylor, were given | that breadstuffs have soared 6 to § advances of 10 per cent. " cents a bushel within & week. ’