Evening Star Newspaper, January 1, 1935, Page 14

A—14 * INVESTORS WATCH RELIEF PROGRESS President’s Message May Cause Brief Pause in Big Markets. BY CHARLES F. SPEARE. NEW YORK, January 1.—The form of sentiment that prompts men to speculate in stocks or in commodities, to invest in Government or municipal bonds or in corporation issues and in real estate will be increased or retard- ed by the messages President Roose- velt brings directly to the Congress, and, through it, to the American public. Consequently, with so many vital subjects to be actively reopened for debate, there is likely to be a brief pause in markets and in business fol- lowing the conclusion of the largest turnover in the retail holiday trade in 5 years. The focus of the public mind is to- day on the question of relief. A year ago it was on the currency. In other words, at the end of 1933 the country ‘was concerned with the spect of inflation during 1934. While inflation and Government spending to promote relief cannot be entirely separated, #the direct method of accomplishing a rise in commodity prices by the processes advocated in the Thomas program are not now a part of the administration program. Twelve months ago it was feared that they would soon be made effective, Swing Toward Dole. It is significant, too, that in less than a year the social philosophy of industrial leaders of the country has swung toward the “dole” and away from work relief. For a long time after the effects of the 1929 crash began to be apparent, the British form of aiding the unemployed was de- scribed as something the American people would not tolerate. To put men and women “on the dole” was unthinkable, But the Committee of 70 at White Sulphur Springs made it apparent that this is the method it now recommends rather than the expensive and budget-disturbing way of aiding the unemployed by work that is neither self-liquidating nor productive. The unknown quantity in the immediate situation is the proposed 8ize of the relief and public works appropriation. The figure generaliy mentioned in Washington is $5.000,- 000,000 to cover the requirements for the remainder of the fiscal year to June 30, 1935, and for the iwelve months to June 30, 1936. In the fiscal year ended June 30, 1934, the budget provided for $1,677,000,000 for the P. W, A, and for the fiscal year to June 30, 1935, for $1.089.000,000. The trouble in both periods has been to create sufficient work to absorb the appropriation. This is also a problem likely to plague the administration when it comes to deal with a sum nearly twice as large as it has had at its disposal heretofore. Program’s Weak Feature. ‘The weak feature of the Govern- ment financial program, as seen by those who keep in close touch with it, is the continued dependence of the ‘Treasuty on the banks as buyers of all new loans. No appeal has been made by it to the public to subscribe to these loans. It is doubtful if, in the increase of $4,600,000,000 in the Government debt in the past year, the public has directly been a purchaser of 10 per cent of the new direct Treasury issues. A bolder policy of attracting the attention of the private investor to new long-term Treasury issues is one of the suggestions offered by bankers to the administration. This could better be done now than a year ago, for, in the meantime, interest rates on all commercial bank time deposits and on savings bank deposits have either been reduced voluntarily to 21, per cent or so ordered by Federal Reserve Board, the F. D. I. C. or State Banking Commissions. It is not im- probable that the rate will later be cut to 2 per cent. On bank balances no interest is being paid. ‘Therefore, a 3'; per: cent 15-20 year U. S. Treasury bond should appeal to the American investor. His aid will be required if the administra- tion successfully floats additional relief loans in the next 18 months to the amount of $5,000,000,000, (Copyright, 1935.) STORE ADVERTISING SHOWS BIG GAIN Retail Copy Occupies 9,625,000 More Lines in November Than Year Ago. Special Dispatch to The Star. CHICAGO, January 1—Improved retail sales have been reflected in an increasing volume of newspaper adver- tising, an analysis by Advertising Age of lineage figures for 77 leading cities in November shows. Store copy occu- +pied 9,625,000 more lines in November, 1934, than in the corresponding month of last year, an increase of 11.4 per cent. The total was 93,798.000 lines. Although some classifications showed decreases in November lineage, news- paper advertising as a whole gained 5.7 per cent. The total for the 77 cities was 152,808,000 lines, as com- pared with 143,650,000 for November, 1933, a gain of 8,158,000 lines. General advertisers increased their newspaper representation in Novem- ber somewhat, rolling up a total of 27,440,000 lines, a gain of 692,000 lines, or 2.6 per cent. Automotive, which has had a big gain for the year, slumped compared with November of last yesr, with a loss of 2,608,000 lines, or 345 per cent. The total was 4,944,- 000 lines. ————— YEAR BEST SINCE 1930 IN U. S. GAS INDUSTRY Special Dispatch to The Star. NEW YORK, January 1.—The gas industry in the United States in 1934 showed an improvement for the first time since 1930, registering an increase in customers, - sales and revenue over the preceding year, ac- cording to Alexander Forward, man- aging director of the American Gas Association. Manufactured and natural gas companies, suppiying towns and cities with a population of 80,000,000, served a total of 15,700,000 customers. Of these, 10,000,000 were served by the manufactured gas industry and the remaining 5,700,000 were served by the natural gas industry. Investment in the gas industry was approximately the same as for 1933. Gas range sales in 1934 showed re- markable increase. Approximately 1,000,000 gas ranges were sold in the year, representing a gain of about 280,000 or nearly 40 per cent over 1933, FINANCIAL. THE EVENING .STAR, WASHINGTON, D. C, TUESDAY, JANUARY I, 1935. FINANCIAL. TRANSACTIONS IN N. Y. CURB STOCKS IN 1934 Stocks and dividends. TOTAL CURB SALES. Total stock sales to date...... 60,046,000 shares Year ago . 100,813,194 shares Two years ago . 57,055,668 shares By the Associated Press. NEW YORK, January 1.—Following is a table of {ransactions in stocks on the New York Curb Market during the year 1934. It gives yearly sales, price ranges and net changes from the previous year on stocks listed prior to January 1, 1934: Stocks and dividends, Acnol Prorx Acme Wire yvtc ! Adams Mil 1 ofd Aero Sup A. ‘Aero Sup Mfg 1 Asfa Ansoc . Year's Net High. Low. Last._ change. Ainsworth (1 Alr Inv war Invest . Invest cv pid. $6 ptd (6) Alxaml Cons .. Alsoma Cons ptd . Alliance Inv . Allied Int Inv' . B Allied Int Inv év n!u Allied Mill e € ‘bfa (11 Goods (.40). Am Invest Invest war Laun Mch ( Lisht & T (1 & T pt (1 alse Of) My & \(An\cnhn o0 B b aTemD 3 S oe Anch Post P Angio-P Oil Apex El Appal El Pow pf (7 ‘Arctur Rad Tube Atk Nat Gas Atk Nat Gas A Ark Nat Gas pf ATk P& Lt pf (467 As Tel L’d Pt 11’;‘ As Tel Ut - As Tel Ut cod At B&Cst RR pf Atl Cst Fish Atl Cst Line (ln Atlas Corp AUIas Corppt A () Atla Babcock & Wil (.40). 51 Baldwin bond rts g Bauman (L) pf Bellanca Alre Bens ‘& Hredzes. Bens & Hedges pf. Bickfords Bickfords pf (2' Blauners (1) Bliss EW.. Blue Ridge Blue Rid ¢ Blumenthal ( Bohack (HC) Bohack HC 1 pf (1. Borne Scrym Botany C Mills Bourjois (14g) Bower R Bear 41! Br Am Oil reg (80) . Br Am Tb B (.445%) Br Am T reg (045%) Brit Cela 13 s SRR, TPttt Fny Butler Bros . Bwana McKubs Cab & Wire A. Cab & Wire B Cab & Wire pf { (mu.) Celluloid D Celluloid Cen Hud. PSSt Cty & Sb Homes (¢} City Auto Stpg (10g) Claude Neon, Lts. ) g @S i3 o 22 B S @ e Cons Mng & Cons Ret, Strs + j Cont Ol Mex Cont Secur . Coon (WB) Cooper-Bess .. Goop-Bess of ww ‘opper Ra EoPE Corp Cam)” & Rey . 13 A Cosden Oil Cournulds ( "85() p & Sons o SeFedaa Crown C Pet Crown C Intl A (% k) Cuban Tob ... Cunro Press ( Cuneo Pr pf (613)... Gurtis Mtg (Mo) Dan Reeves party Pet 4-;: Davenp H De Havil Air ("fifilY Dzlscl W Gilb ( Derby_Oil S & 5 LR e Ea A R R oy - 29 w3k P @ Dulblher Con ‘. Duke Pow!r (3) Dunlo, 3088 Durhai m al n ecorm L |+ e ]+ X - 19313 ] Yenrs Stocks and dividends. in dollar, Duval Tex .000 166.900 D00 5 11850 11.%00 Lsoo 908 1m| 2100 10.200 1RR00 400 1,600 21600 & K00 13 600 20.970 1.200 80, 13,100 Eagle 'Ith Lead . Illl Gas East G & P 6 ofd (i) East G&F pr pfd (4'2) East Sta Pow ast Easy Wash M B Economy Groc ros St (128) !Ie:lrc# Elgin Nat Wat ch’ . Emp D Pl Emp G & £ uh Emp G & F 8 D Emp G & F Eauity Corp . Eureka_Pipe Europ El A ( Europ EI deb rt: Evans Wallo . e e of Ex-cello A & T. Fairchild Av Fanny Parmer ' Pansteel .. . Fedders Mig A Fid Bieetnbos Feder Feder Can'bi " FE D Corp'stid (13 Flintkote. FlaP &L 7 pf Ford M Can A (1'4&) Ford M Can B (1'48) Founda For Fro G&Mcv.pf (I Garlock Pke G - Aviation Elec (Germ) (.80) Gilbert (AC) Gilbert (AC) pf (3'zk) Glen Alden 114b) Globe Under Godchaux Sug Godchaux Sug Gold Seal Elec oldfield Con T&R (©) pt (D) 1n~‘ Gorh Inc pf Gor Mix vic ex (1w Grand Rap V (1,1 Gray rel Bs a Atl_& P nv Gt AlpSst ot Gt Nor Pap (1) Green{ T&D ... Gulf Sta Ut $6 pf (6) Gypsum Lime & Alab Hall Lamp_ (30%).... Hamilton Gas vic Handley p pf (.1462) Henry Holt (.60) Heyden Chem(135b) . Hir Walker Hir Walker pf (1) A . Holling Goid' (1 40b) Holly Sugar Holly Suzar pf (5! .m Horn (AC) 1 pi Hom & Hard "r orn & Hard p Hudson Bay M&S Humble Oii (1) Huyler's Del Husl Del pf stpd Huyl Del pf (4) Hydro El Hygrade Fd Hygrade 8ylv (). I P&LS6 pf mP & Lo o Tilum_Chrs Imp Chem lnd 4 msl Ihternat Pet Int Pet reg (20). Inter Prod Ime' S Ps' B "‘!l r Inter Inter Ut prpf (:'2) Inter Ut war new.. Inter Ut war . Interst Equit Inters Eq cv pf. Inters Hos (7) .. Inters Pw Del pf. Iron_Cap T wiTe “Migvte @ Road Irving Air Ch (.10%) Isotta Praschini . Ital Superpow A Ital Super deb rf 250 10,400 3100 10.230 Jer C P&L 5'25 pf (5'2) Jonas & Ni Jonas & Naum pf. Jones & Lau Stl Kan City PS pf vic A Kerr Lake (10%). Kinks Co Lt pfB Kings Co Lt pfD Kingsb Brew . Kirby Pet (.108) . cN & Liberty Bak p! ) e Lion_Oll : uis L & Lucky Tiger ( Lynch Corp Mangel Strs. Mangel Strs pf Maryland -Cas Mass Util Asso Massey Harris Mavis Bott A. Mayflower As (2) B ant 4y Meeora Mchs Dredge, *(1%2b) Mead John “(4b). Mead Membh N Gas (108} Memph P & L pf (7) Marcant Strs it Strs pf (7 Merrittec &' 8. Mermitee & Mesabi_"Tron Metro Ed rf Mexico-Oh; Michigan G & REERy T3 o Sz g LNPAFPASZIRARS D & o 83 » (et Yeat's Btocks and dividends, s. in dollars. +8, c it (R REARERNEaT | | +++ 4[ |1+ ++44 +1 % Invest war lnven pf @ t Leat] P&Ln[ul) Neisner Bros pf Nelson (H) (as) N Y Auction : Newmount Min B Hon Tos (414b) NY Merchant, (132} P& F 7 of hipbd Fd 440) NY Steam NY Tel pf (62 NY Transit (.30 NY Wat Svc pf . Niag Hud Pow h Md B. Niag Sh Md A pfd un Niles-Bem P Cent Tesas Europ Oil Northa Warev pid Nor In¢ P S 6 pfd ! Norind P8 ¢ otd 3 ] Otlstocks (40g) .. Outbrd Mot A_.. Qutbrd Mot B Overseas Sec A0 Pac 5R.000 4.000 3 500 Pub Sve pf Tin Spec Ban- Au AlL (138) Pantepec Oil ... Paramt Mot Parke Davis (1.80g) . Parker_Pen Park Rust-Pr Pender Gr A (3'2) Pender Gr'8 ('28) Penin Penin Tel P! (7)) Pennroad Pa Cent L&P of (2.£0) 2nta Pepperell (1) Perfect Circle Phila El Co p! (5) Phila El pf Philip Moms “Cons Pied .( Nurfh Q‘mb . Pierce Governor Pines Winter( Pioneer Gold (80} itney-Bowes (20 Bitts Bews & LE, Pitts Lak Bitts Edfrines. Pitts P! Gl (1.6 Ponds Crk Pocah ¢ Potrero Sugar Powdrell & Alex... . Pow Corp Can Pow Cp en 15t ol () Pratt & Lam (1 Bromies &l (1 Prentice Hall ('zf) Prentice Hall Prod Rov ( Prop Real vic. .. Propper McCall Providence Ga: Pruden Inv Bruden Inv bt Q an Prere . Quaker OQats (fib) Quaker O2ts pf (6). 12912 134 Railrord Sh Rwy & Lat S f e Feyhm Inc. . 55 olds Inv (12g) ;S iX Dry (‘vas llx) 2Pk RiEh"Rad cum: ot Rike Kimier (15) Roch G pI D (i) Rolls Roy Gl Roosevelt Fd Root Ref Root Ref p Rossia _Intl Russeks F Ave n Cons S con e 10 Sait Cr Frod (80) B vi e Seaboard Util ...:.. Exchange Topics BY FREDERICK GARDNER, NEW YORK, January 1.—Reaching the end of 1934 trail, the stock market today retained the chastened, sober air characteristic of it during most of the year. There was an under- current of quiet confidence in the financial district, founded on the belief lasting recovery was under way. It was reflected in further rallying tendencies in the share list. But in speculative quarters there was no disposition to celebrate the new year with the exuberance displayed in other years, when final sessions of the yedr marked a respite from liquidating phases of -a bear cycle or a transition to another year of business expansion. While business improve- ment trends have been visible for some time, Wall Street has been stay- ing close to shore in the stock market, waiting for new year developments to verify current indications of further improvement. U. S. Control Big Factor. With the close of 1934, the stock exchange came to the end of the first six months of Federal control. In the interval the market has been restricted to one of the narrowest ranges it has occupied for so long & period in about ten years. Although the business background since July did not furnish inspiration for so- called “constructive operations,” the gentle fluctuations- of the market in the meantime are accepted generally as a good indication of what specula- tion is like -minus its old-time “leadership” from pools, heavy trading by “insiders” and a large following of the outside public attracted by the sight of rapidly rising prices. Clues to Future Missing. From the viewpoint of chart eorists, the stock market ended the ear without giving definite indication the direction of its next major ‘The major trend is connder«l rally upward. But since the last l‘uuplwlncwppedonm.luly, 1933, the share list has remained in what _Hih._lIow. Iast ue:cr 0 Sceman Bros (3%b)11 49 Lock . a:500 10.900 4K.600 11300 5.500 ) 100 Un Ei L Unit s Pl caaaadaaddaddc mmmmmmm”‘mmmw al 0! c I} Ed 2 Unit Stores vie 108 113 Veacz Mex Oil. Venezuel Pot 1 400 1400 Thpiex 8 G1 (47180 Tri Sta T&T, Trunz Pork Strs (.60) Tubize Chat Tubize Chat A Tuneg-Sol Lamp .. Tung Sol L pf () ) 3 5 £y L) 3 ) = H -4 Foil B (.60). Lines pf. 4% SIS (212} 0 (28) 62) Sullivan Mach Sun Invest : Sun Inv pt | Sunray Ol Sunshine Mng ( 68b) . Finch Ol Taggart . Tampa El ‘Tastyeast A ‘Technicolor Teck-Hugh G (40} Tenn El POW l of 14). ‘Tenn Prod Texas P & L Texon Ol (34| ‘Thermotd pf Tob & Al Stk (473%1 1 Tob Prod Exp (.108) .. Toh Sec Ltd ll)‘r'a I3 u,) 1758 Bt 60 m Inv Dhexcefied Mre. AP pf (Mo Union Gas Canada Union Tob Union Tract (3:g) United Airc & T war. Unit-Car.. Unit Chem Unit Chem pt pf. Unit Corp war .. (.70b) Un Molasses Ltd Un Prof Sh Un Prof Sh pf 1] Unit Shoe M 1413b) M pf (1'2 Il!_ul end a3 e | F bt Waco Airc . . Wahl Co aitt & B A.. Waitt & B B . Walgreen war West Auto 8up A (4b) | West Cartrid pf (6). West Md 1st pf West Pow_pf (7) West T3 8 vic \1:1 il st Wright 2 > SIS Sl [+ttt 44 44 ] b 4 2258 o A Wilson Jones (18) . Wisc P&L 7 Woodley Pet (.2 Woolwth Lid Woolwth ot ( < pt (1% 208) .. market technicians call a “broad trading area.” From the chart-read- er's viewpoint, the most significant technical development of the year was the test stocks withstood on the late July break. The market then ap- proximately duplicated the lows of October, 1933. Since mid-September, the intermediate trend has been up- ward but the list still must hurdle the peaks of last February to signal | the start of a new phase in the major bull cycle, as chart-readers dope out the technical signs. Bonds, Commodities Up. In contrast with the trendless back- ing and filling of share prices through 1934, with utilifies and rails losing ground for the year, bonds and com- modities on the average pointed upward., The trends on display in bonds and staples is one major reason why the financial community generally remains bullish on stocks. It was pointed out in various quarters that bonds and commodities often signal the major moves for stocks. The year-end upturn in bonds left high-grade issues on the average at about peak levels of the year and well above their average prices at the close of 1933. An uptrend in commodity prices in recent weeks also has be- come more clearly defined at the year end. The moody index of spot com- modity prices is almost back to the peak established last August, consider- ably above its level at the close of 1933, New Financing Expected. Bond men say the investment mar- ket is in shape to absorb a consider- able amount of new financing early next year, however, some investment dealers declared they expect no im- portant amount of new financing un- less Federal regulations governing is- suance of new securities are modified further with the view to eliminating some of the objections raised by finan- cial interests. It was suggested the new year might see a further develop- ment of the technique of refunding and new financing through the plac- ing of loans with small groups of in- 4 | stitutional investors, thus avoiding registration requirements. Lower Expense Desired. Refinancing during the coming year is expected to be chiefly for the pur- pose of taking advantage of bond market conditions to cut down ex- pense of funded debt. Railroad and utility maturities in 1935 are expecied to be smaller. Railroad maturitles next year are figured at about $350,- 000,000, not counting R. F. C. loans, short terms debt and other emer- gency advances. This year rail ma- turities totaled about $370,000,000. Five roads must provide between them for more than $100,000,000 in maturi- ties next year. They are the Colorado & Southern, the Erie, the Maine Cen- tral, New York Central and the Nickel late. Anthracite Group Leads. ‘Weekly stock price indexes compiled by the Standard Statistics Co. shows the anthracite group scored the larg- est appreciation between January 3 and December 27 of this year, with a gain of nearly 50 per cent. The! fire insurance group was next with 42.3 per cent. Other groups well up- toward the top in appreciation and their percentages of gain are: 28; machinery, 25.1; meat p-cldng 23; auto accessory, 22.5; tobacce, 18.5; retail, 15.5, and busineu equipment, 8.7. On the side of the decline the steel group showed a loss of 152 per cent; utilities, 16.9; copper stocks, 11.5; autcmobiles and trucks, 12; chemical, 7.2, and railroads, 14.5. The year-end rally of the market has re- duced these losses. —_— BALTIMORE LAND BANK DIRECTORS APPOINTED Special Dispatch to The Star. BALTIMORE, January 1.—Appoint- ment of David Y. Harry, of Plyesville, Md., and Frederick P. Weaver of State College, Pa., as directors of the Pederal Land Bank f Baltimore was announced by W, I Myers, governor of the board. . | cials, CITIES' FINANCES INBETTER SHAPE New Methods of Raising Revenues Give Cheer to 1935 Outlook. BY JOHN A. CRONE. Special Dispatch to The Star. NEW YORK, January 1.—While flags fly and bands play, fllpunndl of newly elected municipal and State { officials were sworn into office toda \ They face, most of them, books muc! |moxe generally written in black ink than did their predecessors a year or two ago. i _The business side of many of the 182,659 governmental units in the 48 States is in better shape today than a year ago, thanks to strict economies, rising tax collections, new sources of taxes, better tax collection methods, and many mergers of overlapping units. ‘Taxpayers, however, will not relax their watchfulness over public trease uries, for the very improved condition of these may make some new officials eager to start on a spending spree. From all parts of the country comes word of the necessity of caring for the unemployed, accompanied by the sug- gestion that taxes, because of relief, should be increased. Nevertheless | many governmental units that have {power to levy taxes or incur debts have reduced tax rates or piled up a surplus which will be used to pay for relief. The cost of food. clothing and shel- ter in 1935 will depend in no small degree on the taxes these businesses have to pay. The consumer, whether he believes it or not, is the real tax- payer, even though he may not own property or pay an income tax. Trend Toward Cash Basis. One of the most significant develope ments on the business side of munici- pal government in 1934 was the trend toward a cash basis. This is an oper ating method whereby revenue is ace tually collected before it is spent. One of the first large cities to adopt such a business like policy was Newark, N. J. In New York State, Yonkers led the list. Cities that go on a cash | basis refrain from borrowing money | for current operations. Another significant trend is that of | hiring independent auditors to exam- ine a municipality’s books. With 127,108 distinct school districts, 3,053 counties, 16,366 incorporated commun« ities, 20,262 towns and townships and more than 8000 miscellaneous types of local government, there has been no united movement to introduce uni- form accounting practices or uniform tax collecting methods. And yet it is conceded that taxpayers, who share the benefits of good government and | pay the penalties of poor government, should be completely informed about their financial affairs as the stock= holders in a corporation. Independent audits and periodic examinations of all financial trans- actions are now beings sponsored by | progressive municipal and State offi- who see in them not only & check on carelessness and wrong do- | ing but a positive aid in setting up the most efficient methods of modern ace . counting. Many Refunding Programs. A special committee of the Invest- ment Bankers Association has made a long study of counterfeiting and forgery of municipal bonds. It said: “Recently there have been declared operative a number of very compre- hensive refunding programs involving large amounts of bonds, and there will undoubtedly be more to follow. This is going to result in the near future in the preparation of a great quantity of municipal refunding bonds. In view of the opportunities which will be present for fraudulent duplication as a result of careless handling or of eventual counterfeiting of poorly pre- pared instruments, it is hoped and urged that bondholders’ committees or nny others having jurisdiction over the | preparation of these bonds will make + | 8 thorough study of the various factors covered in this report 2 RESERVE BOARD ISSUES CONDITION STATEMENT By the Associated Press. The Federal Reserve Board's condi= tion statement of weekly reporting member banks in 91 leading cities gave the following summary of the principal assets and liabilities to- gether with changes ‘or the week and for the year, in millions of dollars: Dec. 26. Dec.19. Dec. 27, Loans and in- A3 se- curities. total To brokers snd dealers: In New York Outside New York : Other loans: .. U."S. Govern- ment direct ++ Cash_in vauit. Net demand de- posits Time deposits Gove r n ment depos! Due Feom bariks Due to banks Borrowings from Federal Reserve banks *Includes loans on real o loans. 1Includes olh!r securities. U.S. TR.ADE IN LEAD. Chinese trade in the last year has shown a heavy adverse balance, with the United States the leading import source. b 4+ — 23 e and other Market Averages By the Assoclated Press. o 5 s ARBRIR B DB WO D DL D LR s E’“h (1932).. Hi 2) Low (1932) (1926 average equals 100.) (Copyright, 1934, 8td. Statistics Co.)