Evening Star Newspaper, December 16, 1934, Page 77

News Part 5—12 Pages of Markets Pages 1 to 4 WASHINGTON, D. C, FINANCIAL AND CLASSIFIED The Sundoy St SUNDAY MORNING, DECEMBER 16, 1934 Classified Ads Pages S to 11 .. STORE AL WLL FINSH EAR FARAEAD OF 193 11 Months’ Report Shows Gain of 20.4 Per Cent. Margin Is Widening. CAPITAL TRANSIT PAYS DIVIDEND OF $240,000 Park Savings Bank to Start First Payment to Depositors Dur- ing Present Week. BY EDWARD C. STONE. Based on the report that department store sales in Washington in the first 11 months of this year were 20.4 per cent better than in the like period a year ago, it now seems certain that 1934 will end with retail trade in the Capital from 20 to 25 per cent above the 1933 record. The report just made by the Fed- eral Reserve Bank of Richmond show- ing that retail sales in Washington in November were 25 per cent ahead of November, 1933, was followed by an- nouncement of the 1l-month per- centage records for this city and others in the Fifth Reserve district. December trade has been so good that the year's record is sure to be most satisfactory. Both the big stores and the smaller ones are jammed to the doors every day, not by mere shop- pers but by actual buyers. In the eight more shopping days before Christmas, the rush will continue. Up to December 1, Washington's sales totals were better than the aver- age for the Fifth district, which re- vealed an advance over 1933 of 18 per cent, based on returns from 48 stores. Outside of this city, the territory in- cludes Maryland, Virginia and West Virginia and the Carolinas. Other Cities Enjoying Gains. Other cities in the Fifth district have also scored most gratifying gains during the last 11 months. So far this year, Charleston, W. Va., sales are up 32.7 per cent. This surprising record is partly due to the fact that sales in that city last year took a very serious tumble. Lynchburg, Va., also stands above the Washington mark with a gain of 24.7 per cent. Baltimore’s advance in retail busi- ness has been more conservative, sales being up 12.8 per cent. Richmond sales so far in 1934 have been 19.2 per cent higher than last year. Hunt- ington, W. Va. reports a 16.8 per cent advance. Norfolk has enjoyed a good year in retail trade, sales now being more than 15 per cent ahead of last year. A group of 16 stores in other fifth district citles hung up a 22 per cent gain, showing that the improvement is general. That conditions in this trade area have been better than elsewhere in the United States is revealed by the Federal Reserve Board's announce- ment that 513 stores all over the country reported an average pick-up of 13 per cent in sales for the 11- month period. Transit Pays $1 Dividend. Hundreds of holders of Capital Transit Co. stock in Washington re- ceived checks in the mail yesterday covering the $1 dividend recently de- clared by the directors. It was the first dividend since the merger of the local street car lines went into effect on December 1, 1933. As there are 240,000 shares of stock outstanding the payment means a distribution of $240,000. Since the North American Co. controls Capital ‘Transit, more than half the payment goes to that company. The stock, however, is very widely held by indi- viduals. The former Capital Traction stock was exchanged into the new stock. The payment was indeed welcome. Holders of the old Traction stock had not received a cent in dividends for several years. The stock got so low that to sell it meant almost giving it away. So owners held on, Now they are getting some slight reward for their patience while the price of the stock has also advanced, It closed the week at 27. The other day it was up to 29. Two years ago it was down to 4. The dividend was fully warranted. The first year's earnings have not been announced, but are estimated to be around $3 a share. The upswing in revenues has been astonishing. Park Savings Payment Starts. John F. Moran, receiver for the Park Savings Bank, will begin the dis- tribution of the 20 per cent dividend tomorrow morning. The bank will be open Monday, Tuesday and Wednesday up to 8 pm. for the convenience of former depositors. Then regular bank- ing hours will prevail. To simplify handling of the checks, the receiver states that the cages will be marked alphabetically. Each de- positor will then lose no time in get- ting to the right window. Depositors must present the receipts given them when their claims were filed. Checks will be mailed only to those living outside of the city. Those with proven claims will get their money at once. Others will have to wait about two weeks. There are 14,000 depositors, and it is the first payment since the bank closed. About $600,000 will be distributed. Norman R. Hamilton, receiver, re- ports that more than 1,500 depositors in the Northeast Savings Bank have not yet called for their share in the second dividend of 25 per cent, $75,000 awaiting them at 1406 G street north- west. He added that 800 checks, to- taling $38,500, are awaiting Seventh Street Savings Bank depositors, and 250 checks, involving $7,000, are being held on Washington Savings Bank ac- counts at the same address. That means about $120,000 has not been claimed. The Bank Women’s Club of Wash- ington will hold its Christmas meet- ing at the Olney Inn, Olney, Md, at 6:45 pm. Wednesday, December 19. It is to be a closed meeting and din- ner will be served to members. Miss Alice H. Whitton, president of the club, will preside. EXCHANGE SEATS HIGHER. NEW YORK, December 15 (#).— ‘Two New York Commodity Exchange seats were sold yesterday at $2,450 and $2,500, respectively. The previous \ransfer was at $2,300, Canadians Claim Lead in Recovery As Index Climbs Special Dispatch to The Star. TORONTO, December 15.— Canada’s sharp recovery is shown by figures released by the Domin- fon Bureau of Statistics. The bureau’s economic index at the close of the first 11 months of 1934 stood at 95.3, compared to 793 at the same time last year. “Measured by information available regarding 15 important countries,” says the bureau bulle- tin, “industrial production in Canada showed greater recovery in 1934 than in any other coun- try of the group except one.” The gain in Canada was some 15 per cent, compared to 2.5 per cent in the United States. (Copyright. 1934. by North Ameri- can Newspaper Alliance. Inc.) STOS ELL OF, BT BONDS REAGH NEW PEAKLEVEL Shares Await Clearer View of 1935 as Industrial Loans Forge Up. BY CLAUDE A. JAGGER, Associated Press Financial Editor. NEW YORK, December 15.—Stock prices backed away from.their recent tops this week while waiting for a clearer view of 1935 prospects, but in- dustrial bonds pushed up to new highs for the recovery. Trading slackened somewhat, and save for a brisk flurry or two, selling in stocks was in modest volume. The market had a good cushion in the week's business news, which included a rise in steel production to the best level since June, sharp gains in retail trade, and a jump in freight move- ment above 1933 levels for the first time in weeks. 8. E. C. Watchers Alert. Some brokerage quarters were in- clined to attribute the sag in stocks to greater activity on the part of the Securities and Exchange Commission’s market watchers. Some professional traders were rumored to have pulled in their lines. But about all that could be learned definitely, however, was that the commission’s investigators are active, and Wall Street is more convinced than ever that when the commission said, in effect, “no monkey business,” it meant it. Many quarters in Wall Street say the commission is doing a constructive job. The week’s turnover in shares in the Stock Exchange declined to 5,309,227 from the previous week's total of 6,232,451. The Standard Sta- tistics Co.'s price index of 80 stocks dipped 2.1 points to 72.6, which is 3.3 points under the Autumn peak reached the previous week. The bond market was mixed, with gilt-edged issues generally steady to firm. Standard Statistics Co.'s price index of 20 representative industrial issues rose 0.4 to 85.7, a new high since March of 1931, but the index of 20 rails dipped 0.6 to 83.4 and the in- dex of 20 utilities barely held steady, closing at 89.0, off 0.1. Rail Bonds Confused. The railroad bond market was a little confused by remarks of Jesse Jones, chairman of the R. F. C, who said in an address in New York that railroads that must be reor- ganized must not put it off too long, and that the Government cannot in- definitely carry the burden for roads that cannot earn their interest charges. On the other hand, he added that if Congress extends the life of the R. F. C. it will continue to lend to any ralilroads that can put up suitable collateral. The commodity markets were mixed. Grains reacted from their peaks of the last fortnight. Wheat registered losses for the week of 1% to 23 cents a bushel, and corn of 1 to % cents & bushel. Cotton, however, showed gains of 25 cents to $1 a bale, and more distant deliveries rose rather briskly in response to the heavy vote in favor of continued crop restriction polled in the referendum of cotton growers. B WOOL TRADING DECLINES SLIGHTLY DURING WEEK By the Associated Press. BOSTON, December 15 (U. S. De- partment of Agriculture).—Domestic wools sold fairly well in the Boston market during the last week, but on the whole slower than during the pre- vious week. Fleeces had some call at 27a28 cents in the grease for fine Ohio Delaine, and at 23a24 cents for French combing of similar grade 64s and finer wools. Limited quantities of 56s, three-eighths blood Ohio wool sold at 28a29 cents for strictly combing and at 26a27 cents for clothing. In West- ern grown wools, the largest demand was on French combing 64s and finer territory wools at 68a73 cents scoured basis for graded lines and at 65a70 cents for original wools. REVIEW PICTURES BROADENING RISE - OF RETAIL TRADE 11 Cities Over Large Area All Helped by Favorable Trend. COLDER WEATHER SPURS DEMAND DURING WEEK Inventories of Jobbers and Wholesalers Continue to Shrink. Gains Spread to Factories. By the Assoclated Press. NEW YORK, December 15.—Tab- loid review of business reported by Dun & Bradstreet, Inc., in the four divisions of wholesale and jobbing, retall trade, manufacturing and in- dustry, and collections this ~week, compared with the corresponding pe- riod last year. Active (A), fair (F), means equal to; good (G) above; quiet (Q), slow (8), below last year. Wh. Ret. Mfg. Baltimore ..... Chicago . Cleveland . Detroit ... Indianapolis Kansas City . Louisville . Pittsburgh St. Louis Toledo . ‘Youngstown .... Baltimore. — Christmas shopping and the arrival of real Winter weather carried retail sales 10 to 30 per cent higher than a year ago. In- ventories of wholesalers and jobbers continued to shrink, placing heavier demands on- manufacturers who were increasing schedules. Industrial op- erations holding recent gains de- spite usual tapering-off at this sea- son. Industrial employment main- tained; employment in distributive branches increased. Chicago.—Sharp upturn in nearly all trade branches. Retail dollar turnover running 20 to 30 per cent above last year: largest Christmas sales since 1930 indicated. Early snows made wholesalers’ stocks in- adequate to meet demands for rub- ber footwear. Phenomenal gains be- ing reported by manufacturers of farm equipment; most plants running at capacity. Wider call for bullding materials, forcing brick companies into production for the first time in five years. Early Christmas buying reaching highest level in five years. malm for better grades of than last year. Novem- ber department store sales 16 per cent above 1933 figures. Heavy snows and cold weather cleared wholesalers’ stocks of rubber footwear. Gradual improvement in industrial operations, particularly in automobile parts and steel divigions. Ohio employment in November gained over October for first time in 11 years. Many labor dis- putes still unsettled. Detroit.—Gradual upturn in evi- dence since mid-September acceler- ated in all branches during week. Contributing factors included bank pay-offs of nearly $100,000,000, in- creased employment and pay rolls in industrial centers, and larger farm income. Dollar volume of retail sales up 16 to 20 per cent from com- parable 1933 week. Largest indus- trial gains being made by automobiles and steel. Output for first quarter of 1935 estimated at 800,000 to 900,- 000 cars and trucks. Indianapolis.—Holiday trade get- ting well under way, with volume of sales rising rapidly. Broadness of Christmas buying thus far indicated gain of 25 to 30 per cent for Decem- ber over 1933 sales total. Retail sales up 20 to 25 per cent for week and 15 to 20 per cent above last year's com- parable figures. Wholesalers rushed to handle reorders for Winter mer- chandise, due to sudden change to colder weather. Manufacturing oper- ations increasing slowly but steadily. Kansas City.—The slight recession in trade during October and early November was overcome and volume in both the wholesale and retail branches moved upward briskly. Cold weather requirements taxed the fa- cilities of wholesalers in making rush shipments, and in some lines stocks were almost entirely exhausted. De- spite the increased number of fami- lies on rellef rolls, Christmas buying already running larger than a year ago. Savings banks deposits largest in years. Results of modernization drive not up to expectations. Louisville—General trade of busi- ness continued to be favorable, both locally and in the surrounding terri- tory.” Christmas purchases 10 to 12 per cent larger than a year ago; to- tal retail volume up 15 to 18 per cent. Wholesale volume 15 to 20 per cent better than in corresponding 1933 week, with dry goods, notions, hard ware and electrical supplies and ap- pliances leading. her prices for farm products, live stock and tobacco (Continued on Third Page.) 50000000000 Q0QQRQQQQQ0 LEL LT T UL nOOOODOOOODg HOLIDAYS T0 BRING NEW EMPLOYMENT PEAK FOR' BRITAIN Total Expected to Reach 10,340,000, With Two Millions Still Idle. FRENCH FARMERS FORCE DELAY ON PRICE CUTS Powerful Associations Unimpress- ed by Flandin Promise of Strong Policies. Special Dispatch to The Star. NEW YORK, December 15.—Cables and radio dispatches to Business Week give the following survey of business abroad for the week ending today: LONDON.—“More people will be working in Britain between now and Christmas than at any time before, but there are still nearly 2,000,000 who are without work. Previous em- ployment peak was in September, 1929, when 10,300,000 persons were em- ployed. The Christmas rush this year is expected to push the employment total to 10,340,000. “London entered & new phase of gayety with the royal wedding, but it is doubtful if the rest of the country has yet reached the spending mood which is evident in the capital. Re- tail sales rose again in October more than 3 per cent above the previous month, making a steady rise for 12 months, expect for April. Women's wear and hardware have done better than the average, but furniture 1is easily the leader in the year’s advance. Note circulation has already increased more than 10,000,000 pounds above the level for the same period last year. Before Christmas it is expected to jump 20,000,000 pounds above last year's figure.” Flandin Issues Threat. PARIS.—" ‘This Parliament now has to choose whether it desires to solve this crisis or not. This is a govern- ment which governs. This is a Parliament which makes laws. No outside organizations, whatever they may be, should be able to make it draw back from its task.’ “French parliamentarians were properly impressed when tall, vigorous Premier Flandin made this threat. Not so the powerful French farm as- sociations. Before the week was over they had made their infiuence felt on their representatives in the French Chamber of Deputies, and _the Flandin lovemmen:h. hll:‘lcuded to their de- mands to nt of postponing the date on which drastic price reducing legislation was to become effective. “Until the last few years France has never raised enough wheat to sup- ply home demand. Eager to be in- dependent of foreign supply (espe- cially for military purposes), French wheat growers have been coddled with a towering tariff wall which lifted the internal price of wheat in France as much as three times above the world price. Nature ruined the grandiose scheme by providing bumper crops in two successive years. “Cost to the government of main- taining & minimum price guaranteed to the powerful French farm electorate has been enormdus. Since last year, it has been more than the purse- pinched Frenchman has been willing to shoulder in taxes. Various govern- ments have attempted to cut living costs by reducing taxes. None, until the present Flandin government came to office, has had the courage to in- sist that Prance can no longer afford this luxury of home-grown wheat, at least at present prices.” Reich Upturn Hailed. BERLIN.—“After. the slight relapse of business activity during July-Sep- tember, current indicators for October and November are making a better showing. A new upturn in the heavy Industries seems, in contrast to pre- vious months, to make up for pro- duction losses in consumers’ goods in- dustries caused by restricted operation and measures imposed in order to save raw materials. Despite these indus- trial gains, employment dropped 87,000 in November, due largely to declines in outdoor work, especially residential building.” SILK TRADING TO START. SAN FRANCISCO, December 15 (#).—Trading in raw silk futures will begin Monday on the California Com- modity Exchange. The exchange will operate under the sponsorship of the San Francisco Chamber of Commerce, Trading hours will be from 11 am. to 2 pm. ASSET VALUE: INCREASES. NEW YORK, December 15 (). — Net asset value of National Bond & Share Co., an investment trust, as of November 30, was equal to $40.90 a share on the capital stock, against $40.75 on May 31, and $40.49 on No- vember 30, 1933. Superplanes Expected to Make Enough Speed For Breakfast in New York, Luncheon on Coast BY JOHN A. CRONE. Special Dispatch to The Star. EW YORK, December 15— Breakfast in New York, lunch in Los Angeles. Doubly super- charged airplane engines, with supercharged cabins for cruising speeds approaching 400 miles an hour in the substratosphere, will make such a meal schedule possible. “The time is not far off when pas- sengers may breakfast in New York and have a late lunch in Los Angeles,” sald T. Park Hay of Trancontinental- Western Airways, in a talk here today before the Metropolitan Automotive Engineers. He was tracing the prog- ress of transcontinental flying from the train-plane-train combination of 1929, when the speed averaged around 114 miles an hour, to the present overnight plane service, which aver- ages better than 200 miles an hour. “High altitude flying with super- charged cabins would be practical only for distances of 800 miles and over,” 0 explained F. W. Caldwell, winner of the 1933 Collier Trophy. “It would be more economical to use planes flying at lower altitudes for shorter dis- tances.” Cabins can be made soundproof and air-conditioned at low cost, ac- cording to Stephen Zand, acoustical engineer for Sperry Gryoscope Co. This ought to be good news to people who get airsickness, which, of course, results chiefly from noise. These are just a few of the techni- cal developments now taking place in the airplane field. The industry now would like to see Postmaster General Farley’s airmail rules scrapped. En- gineers and executives believe that the Federal Aviation Commission, now preparing a report for President Roosevelt, will recommend the repeal of the Black-McKellar airmail legis- lation enacted by Congress following Mr, Farley’s cancellation of airmail contracts last Pel o Planes from January 1 to Septem- ber 1 carried 2,572,459 pounds of air- ¥ mail, which contrasts with 4,952,181 pounds in the same period of 1933. The loss this has meant to the air- plane operators can be figured in dol- lars and cents. The loss that whole- sale cancellation of airmail meant to many lines of business cannot be com- puted. The mileage of scheduled airlines, due largely to the three-month air- malil cancellation, was only 26,674,332 this year against 34,802,522 in the first nine months of 1933. In the aviation business there are plenty of executives, like Frank A. Tichenor of Aero Digest, who want to know why the Federal Aviation DNDEND GANS S REEORDPACE Favorable Changes Reach 75, Largest Total of Depression Period. By the Assoclated Press. NEW YORK, December 15.—Fa- vorable dividend changes in the last week numbered 75 and were more numerous than in any other single week of the depression, according to the Standard Statistics Co. of New York. Unfavorable changes totaled 12, against 4 in the previous week. Details of changes follow: Favorable, Increased — Aetna Casualty & { Surety, Bank of Commerce & Sav- | ings (Washington). Pacific Finance, { Tintic Standard Mining, Briggs & Stratton, Island Creek Coal, Cana- dian Canners, Carolina Power & Light 87 ptd, Carolina Power & { Light $6 pfd, First & Merchants National Bank (Richmond). Cin- cinnati Union Stock Yards. Resumed—Chapman Valve Mig., City Auto Stamping, Florsheim Shoe class A, Florsheim Shoe class B, Irv- ing Air Chute, Sengamo Electric 7 per cent pfd, Spang Chalfant & Co., Occidental Petroleum, Virginian Railway, Wehle Brewing, Western Pipe & Steel, Evans Products, Pie Bakeries, Food Machinery, Wiebolt Stores. Extra—Aetna Casualty & Surety, Aetna Life Insurance, Ambassador Petroleum, Bandini Petroleum, Chese- brough Mfg., El Doredo Oil Works, Chicago Mail Order, Ferro Enamel, Hercules Motor, International But- ton Hole Sewing Machine, Reece But- ton Hole Machine, Singer Mfg., Weeden & Co., Building Products class A, Building Products class B, Con- solidated Mining & Smelting of Canada, Loews, Merchants Bank of New York, Munsey Trust Co. (Wash- ington), Petreloum Bxploration, Acme Steel, Albany & Susquehanne R. R, Atlantic National Bank (Jackson- ville), Bon-Ami class A, Bon-Ami class B, Canadian Canners Conv. pfd., Cream of Wheat, Harbauer Co., Third National Bank (Nashville), ‘Bickfords, Bloch Bros. Tobacco, Co- lonial Trust Co. (Waterbury), Inde- pendent Pneumatic Tool, Interco- lonial Coal, United Loan Industrial Bank, Day Trust Co. (Bosten), Deisel-Wemmer-Gilbert, Ideal Ce- ment, Loomis Sayles Mutual Fund, ‘Trust Co. of Georgia (Atlanta). Initial—Pilgrim Trust Co. (Boston), Wwinn & Lovett Grocery, Bank of ! Yorktown, Electrical Products Con- solidated (Seattle), National Bank (Detroit), Pittsburgh Oil & Gas, Pond ‘Creek Pocahontas, Duquesne Brew- ing. Capitol National Bank & Trust Co. (Hartford). Unfavorable, Reduced—Eureka Standard Cons. Mining, Empire Sefe Deposit, Provi- dence Gas, Real Estate Loan of Can- ada, United Verde Exten. Mibing, Bank of the Manhattan Co. Passed—American Su 1st Ipld., Charles Gurd & Co. pfd., Stand- ard Gas & Elec. $7 pr. prf., Standard Gas & Elec. $6 pr. pfd, Standard Power & Light $7 cum. pfd, Chat- ham Saving & Loan (Savannah). November cash dividend increases on 600 common stocks, according to Moody's, amounted to $26,700,000. This represents the largest gain for a single month since that realized in November, 1933. Since the low point of June 30, 1933, cash dividends on these stocks have increased by $199,- Commission thus far has not asked j 000,000. Mr. Farley to testify. These air ex- “Some writers have gone so far as ecutives feel that all the records in}to attribute the numerous recent the Post Office Department dealing | declarations of extras to a consclous with the cancelled contracts should | effort to reduce surplus, to escape be made public so that American busi- taxes on surplus. ness may know exactly where it stands | _“These extras are being earned in when dealing with Federal officials the future. (Copyright. 1934 [ in|the great majority of cases, and therefore do not cause an inroad on corporete surphuses.” > NOW WHERE WILL THEY TIE THAT ON Y, %// g ) Financiers Await Next Radio Talk From White House By the Assoclated Press. > NEW YORK, December 15.—For important cues on political probabili- ties, the financial district continues to wait for President Roosevelt's next “fireside” chat. to say to the country before Congress convenes. Meanwhile, a congressional forecast by Raymond Moley, member of the President's original “brain trust,” in the current issue of the magazine Today has been widely quoted in Wall Street. Moley asserts the administration probably will continue to have its way with Congress, that proposals for establishing a central bank will be de- feated, that only a weak compromise bonus measure is likely to pass and ‘that President Roosevelt probably will be able to keep inflationists from run- ning out of bounds with monetary legislation. SHARP GAIN SEEN AT TEXTILE MILLS Rise in October and November Leaves Activities Above Levels of Year Ago. Special Dispatch to The Star. NEW YORK, December 15.—“Tex- tile mill activity during the first 10 months of 193¢ was approxi- mately 19 per cent below the similar period of 1933, and 15 per cent below the first nine months of the average year in the 1924-1931 period, roughly assumed as normal,” Textile World reports in its December issue. “As we predicted last month, Octo- ber figures reflected a sharp pick-up. We estimated that activity for that month would approximate that for October last year; final statistics showed only a 2 per cent difference, in favor of October, 1933. Although further figures are not available at this writing, we would estimate No- vember activity as slightly ahead of October, and 10 per cent ahead of November, 1933. “From an employment standpoint November was a good month in tex- tiles. The snapback from the strike- paralysis of September continued at a satisfactory rate. Mill activity was at a good level for November, “Unfortunately, from the price standpoint there were some woefully weak spots. Print cloths and carded yarns gave a particularly bad per- formance.” LAG STILL MARKS PRIVATE FINANGING Corporation Loans Amount to Only 11.3 Per Cent of Year’s Total. Special Dispatch to The Star. NEW YORK, December 15.—Com- pletion officially today or the.United States Treasury quarterly financing directs attention to the impartant role played by Government financing, national and local, in American mar- kets this year. Securities publicly offered—bonds, notes and shares—by corporations in the first 11 months of this year took only 11.3 cents out of every financing dollar. The Treasury in the same! period took about 77.5 cents out of every financing dollar, which con- trasts with 87.9 cents in the like 1933 period. All types of Government financing—farm loan, home loan, other governmental agencies, States, cities and communities—took 88.7 cents of every financing dollar, as against 92.2 in the first 11 months of 1933. The United States Treasury in the first 11 months of this year floated $10,345,561,700 in various types of issues, along with $2,018,360,055 non- Treasury financing. Non-Treasury financing included $703,411,100 for farm loan and other governmental agencies and $603,552,510 for States end municipalities. The latter figure does not include funds obtained by States or smaller units from any agency of the Federal Government. ‘Therefore, corporate and foreign gov- ernment financing amounted to only $511,396445 as against Treasury financing of $10,345,561,700 and other types of government financing of $1,506,963,610. The foreign government financing publicly offered does not include the Dominion of Caneda one-year notes taken by a group of big American banks. The corporate financing does not include about eight large issues purchased by a few large institutions, chiefly life insurance companies. These omissions, however, do not affect the general trends. (Copyright. 1034.) GLASS ACTIVITY LAGS. NEW YORK, December 15 (#).— Seasonal decline in orders and pro- duction, says the American Glass Re- view, is now apparent in the glass in- dustry. The demand for glassware for table use has tapered since the first of the month, a natural reaction at this time, it was said. Insurance Policy Loans Reduced 104 Millions as Recovery Starts . Special Dispatch to The Star. EW YORK, December 15.— Searching the report of the life insurance companies, sub- mitted yesterday at the con- vention of life insurance pres- idents, evidence of recovery in the financial status of policy holders is found in the item of policy loans. For the first jime since the depres- sion began such loans have been re- duced. The decrease amounts to $104,000,000. It compares with an in- crease of $1,600,000,000 from 1928 to the end of 1933, or about 90 per cent. During the last year the companies had a net increase in total admitted assets of $803,000,000. The largest ad- dition to investments was in United States Government bonds. By adding $663,000,000 to their portfolios, they have a total of $1,468,000,000 of such paper—the largest amount they have ever Over & period of years the life in- ) down their real estate mortgage hold- ings. These reached a peak of $7,089,- 000,000 at the end of 1931. They are today $5,507,000,000, or a drop of about 22 per cent in three years. The decrease in urban mortgages since 1931 has amounted to $911,- 000,000, or about 18 per cent, and in farm mortgages to $818,000,000 or 40 Only moderate chmel‘ ‘were made surance companies have been cumnxl this year in the investments in rfll-l BUSINESS RETURNS 10 JULY LEVELS IN FURTHER ADVANCE Iron and Steel Industry Reports Best Volume in Five Months. RETAIL SALES LIFTED BY CHRISTMAS RUSH Social Differences Cited in Dawes’ Comparison With Nation's Past Depressions. BY CHARLES F. SPEARE. Bpeclal Dispatch to The Star. NEW YORK, December 15—The index of business activity this week has moved up to the level of last July. For some time now its advance has been constant. Likewise the iron and steel industry shows steady progress, with no in- terruption to its upward trend since October and with the largest volume in five months. Steel scrap prices, & recognized barometer of trade varia- tions, are a dollar a ton higher than In early November. It is officially stated that the electric power output for the week of December 8 was the greatest in four years. e Reports from different sections of the country tell of stores crowded with Christmas shoppers who are buying merchandise freely and whose pur- chases are expected to realize a dol- lar value exceeding that of any year since 1929. It seems rather foolish to attribute all of this holiday demand to the spending of a people cushioned with public funds. What it signifies is that the spirit of confidence in recov- ery is growing stronger and, as the public thinks it sees the end of the depression, it is more willing to draw on its reserves or to make use of its current income. Dawes’ Words Cheerful. It is pleasant to read the words of former Vice President Dawes; how profitable the reading may be can better be told next June. To predict what may be the economic status of the country six months hence requires courage, though it may not reflect accurate judgment. Mr. Dawes rightly emphasizes the time element in recovery and draws parallels between the present depres- sion and those of the past. The crisis of 1873 ended in 1878. That of 1893 also ran through its acute phases in five years. The one beginning in the Summer of 1929 has been more ex- tended and more severe than the earlier two. For this reason” there is the legitimate argument that it will end like the others—with a sudden realization on the part of consumers that they are bare of essential goods and must begin to replenish. There are, however, quite different social and economic conditions in the United States and over the entire world than prevailed in 1878 or in 1898. These may be factors retarding the return of business health of a country that obviously is in & mood for going steadily ahead. We are not today the homogeneous people we were 35 or 55 years ago. We are more sensitive of and responsible to the political and monetary condi- tions of Europe and the Far East. The middle stratum of the business and professional world, conscious of its abuse and exploitation in the last gen- eration, is now becoming articulate. For the first time it realizes its power. Foreign tariffs shut out our surplus goods, which moved more freely in the past and eased down the effects of a dorhestic crisis. ° New political phi- losophies and new economic principles control in Russia, Germany and Italy. There i8 a certain backwash from them to these shores. There has been in every depression some strange set of circumstance which seemed to offer an insurmount- able barrier to a return to normaley, but in each instance the laws of sup- ply and demand, the inevitable swin from reaction to recovery, have oper ated and slow recuperation has bee followed by vigorous material health. Of ‘course, there must be a skillft physician to prescribe for the chill fevers, indigestion or skull fracture o his patient and cne who employes th right remedies Zor building up de stroyed tissues. Among those in the banking and business world who criti- cize the present administration fo: its methods in trying to revive indus- try there is a disposition to forget that the ills from which we are suffering were nearly all contracted prior to 1932. The physiclan now in charge was compelled to take a case that was seemingly incurable. The patient at times has been intractable. The fact that the physician has been of another school than his pred- ecessors has made his job more diffi- cult. His regime has been one in which direct action toward relief and sympathetic understanding have re- placed cure by faith or by amputation. This is more likely to succeed than the old method of treatment which exalted the doctrine of the surival of the fittest. Domestic Outlook Good. Turning back to the domestic inci- dents of the week that give a clue to later developments of importance, or which should hush up rumors. of im- pending unfavorable events, we find them in several directions. Senator Fletcher, chairman of the Senate Banking Committee, has committed himself this Winter to a policy of let- ting banking legislation stand. This eliminates the prospect for a central bank, which has been a disturbing factor. Secretary of Agriculture Wal- lace, in his annual report, writes of the uselessness of trying to raise farm incomes by greater restriction of out- put. Jesse H. Jones, chairman of the Reconstruction Finance Corp., says his agency will continue to be helpful to the railroads, but that those in need of reorganization should get about this work before it is too late. The Federal Trade Commission has added another flluminating chapter to - | the history of public utility holding companies, which all investors in the securities of power and light operating concerns should read with satisfaction. Amendments are to be made to the securities exchange act that will assist t"l.no".l':"n refunding of large amoun! coupon mortgages and debentures. (m:& 1934, bn Hofl-hm}lllflu. .