Evening Star Newspaper, January 6, 1935, Page 55

News Part 5—12 Pages of Markets Pages 1 to 4 VOLUNE HOUNS SHARPLY ON D, EXCHANGE N 19 Bonds and Stocks Also Register Marked Price Gains Over 1933. ANNUAL BANK MEETINGS ARE DUE NEXT TUESDAY Washington Gas and Carpel Di- rectors Declare Usual Quar- terly Dividends. BY EDWARD C. STONE. Trading on the Washington Stock Exchange during 1934 was far ahead of business in 1933, both in stocks and bonds. There was a turnover of 7,- 639 shares in public utilities issues and 6956 shares in miscellaneous stocks. Trading in public utility bonds in- volves a money turnover of $796.200, according to a compilation of the year's business prepared by W. B. Hibbs & Co. Washington Railway & Electric Consolidated 4s experienced the larg- est total trading during the year, vol- ume reaching $239,500. Capital Trac- tion first 5s came next in popularity, with $194,000 in these bonds changing hands, while Anacostia & Potomac Railroad first 5s, 1948, stood third in the list. Business in Washington Gas Light first 5s, 1960, was nearly as_good. In the public utility stocks, Capital Transit was the most active. with a turnover of 3,705 shares. The street railway merger focussed special atten- tion on this issue. Washington Rail- way & Electric preferred stood second in the number of shares changing hands in 1934, with a total of 2,111, while Potcmac Electric Power 5!, per cent preferred stock was third. In the miscellaneous group, Mer- genthaler Linotype topped the list with 3,775 shares changing ownership. Next came Lanston Monotype, which re- corded sales of 1356 shares. Bank stocks were returned to the listed securities during the year. was modest, but sales were recorded in national bank, trust company and savings bank stocks, the national bank sales being the largest. Both fire in- surance and title insurance stocks elso figured in the year's sales. Notable Gains Shown. The year saw many surprising ad- vances in prices. Capital Traction bonds moved from 62 to 90, Anacostia & Potomac R. R. 5s climbed from 49 to 783%, Washington Gas 5s, 1958, opened the year at 80 and closed at 100';. Railway & Electric 4s ran from 83 to 99 and City & Suburban first 5s went from 64 to 78. In the stock division notable gains were scored by Capital Transit which moved from 14 to close at 26, by Washington Gas in a climb from 45 to 62 and by | Merganthaler in a run-up from 21 to close the year at 32. Other important advances were also recorded, the com- plete report appearing elsewhere in the financial section. The governors of the Washington Exchange announced yesterday that beginning tomorrow delivery on all securities will be made daily at 1:30 o'clock instead of 2:15, the time pre- vailing for many years. The change has been made on account of the new 2 o'clock closing of the banks. The 1:30 rule will give holders of securities an opportunity to place them in safe deposit boxes before the banks close. Saturday trading on the Exchange opened with $1,000 Washington Gas Ss, 1960, selling at 110':. Washington Gas 6s, series B, came out at 103. After call, Anacostia & Potomac R. R. Bs figured in two $1,000 sales at 781.. On the stock side, 10 shares of Mer- genthaler Linotype came out at 30, unchanged from the last previous sale. Annual Bank Meetings Near. All the national banks in Washing- ton and several trust companies and savings banks will hold their annual meetings next Tuesday, January 8 In some instances, after the stock- holders elect directors for 1935, the directors will organize at once by elect- ing officers. The December 31 bank call by the eontroller came as expected, and found the banks here with slightly higher deposits than they carried on the Oc- tober 17 call. Deposits are up nearly $35,000,000 over the call on Decem- ber 31, 1933, a highly satisfactory gain in 12 months. The year end call is always dated eon the last business day of the year 80 that the Treasury’s records will be complete as of the calendar year. That date, however, is not compul- sory, and is never announced in ad- vance. A. B. A. Journal Cheerful. The American Bankers’ Association Journal, in pointing to important progress attained in 1934, says: “In 1934 automobile accessory man- ufacturers increased their earnings by nearly 250 per cent; electrical equip- Business Perley Will Head A. L. B. Committee For 1935 Banquet M. Perley, an investment of- the American Security & Trust Co., has been appointed by Walton L. Sanderson, president of ‘Washington Chapter, American Insti- tute of Banking, as chairman of the annual Banquet Committee. This will be the thirtieth annual dinner sponsored by the local bank- ing fraternity and is looked forward to with a great deal of pleasure by both the junior and serior bank- ers. The first ban- quet was held in 1905 and since that time these annual affairs have been held without inter- ruption until last year, when the continuity was broken on ac- count of the an- nual convention ) of the institute which met in this city. Purther de- tails regarding this function, such as i"me' place, prominent guests and spe- jcial attractions, will be announced later. Mr. Perley served as president of tWa.shmglon Chapter in 1930-31, after Frank ficer in Frank M. Perley. having held almost every other elec- | | tive office. He has been chairman of all the important committees and has been a delegate to annual conventions | for a number of years. had much to do with banquets. He has also ‘previaus annual BANKS MAINTAIN HIGH PERCENTAGE OF LIQUID ASSETS 'Ratio of Federal Bonds and Cash at 80, One Report Reveals. Special Dispatch to The Star. NEW YORK. January 5.—An ex- amination of the statements of New York and Philadelphia banks now publishing their reports of condition | as of December 31 indicates no change in the two-year-old policy of main- taining a high percentage of liquid assets; in other words, assembling their assets in the form of Govern- ment securities and cash. One New York Trust Co. reveals an 80 per cent ratio in Governments and cash to deposits. Another institution has 77 per cent; a third shows 71 per cent. The Philadelphia banks report- ing range from 53 to 67 per cent liquid with a larger proportion of “other securities” and municipals than their New York correspondents. Lower in Smaller Banks, In the reserve cities and among the country banks the proportions will be found to be much Wwer, though everywhere the tendency to increase the Government bond portfolio during 1934 was a distinct trend in the in- vestment of new deposits and the re- investment of proceeds of liquidated commercial, real estate and security loans. There has also been noted a definite increase in the bank holdings of municipal bonds. The proportion to governments, however, is low, rang- ing from 2 to 5 per cent of deposits. In some cases municipals have been lumped under the heading “other securities,” as in the case of a New York institution that shows 26 per cent of deposits in this catégory. This bank, by the way, has securities and cash totaling $12,000,000 more than deposits. Taxable Types Scarce, In the classification of securities” in bank statements are listed bonds and stocks of railroad, public utility and industrial corpora- tions. With a few exceptions the portfolios of metropolitan banks are thin with respect to securities of the taxable type. Two Philadelphia institutions account for 13 per cent of investments to deposits in this group and another about 30 per cent, the latter probably including munici- pals in its general division. All in all, the sum of bonds, other than governments, owned by the larger banks, is small. It contrasts with an investment by the life.insurance com- panies at the end of 1924 of more than 25 per cent of their assets in corporation mortgages. (Copyright. 1935.) N DIVIDEND DECLARED BY AMERICAN MACHINE By the Associated Press. NEW YORK, January 5.—American Machine & Foundry Co. declared the regular quarterly dividend of 20 cents ment by over 200 per cent; office equipment by over 150 per cent; chem- {cals, 44 per cent; miscellaneous mmanufacturing, 56 per cent, and non- ferrous mining by over 200 per cent. Fifteen oil companies changed a deficit ©f $6,835,000 into profits of $17,082,- 000; machinery manufacturers from a deficit of 81,564,000 to a profit of $4,- 811,000, and building materials, a deficit of $2,947,000 to a profit of $3,- 250,000. Thirteen steel companies re- placed a deficit of $41,700,000 with a profit of $12,900,000. “Tobacco companies increased their earnings 166 per cent. International ‘Telephone & Telegraph changed a net loss of $239,223 in the first nine months of 1933 to a profit of $1,457,- 898 in the same 1934 period. Corpo- rate dividends announced up to De- cember 1 approximated $2,500,000,000, as compared with $2,385,000,000 for the whole of 1933.” More Dividends Declared. Directors of the Washington Gas Light Co. have declared the regular quarterly dividend of 90 cents per share on the outstanding stock, pay- able February 1, to shareholders of record January 15. Directors of the Carpel Corp., a food distributing concern, with the head office in Washington, have voted the usus! quarterly dividend of 25 cents & share. It is payable January 15 to stock of record January 8 | » payable February 16 to stock of record February 1. “other | FINANCIAL AND CLASSIFIED he Sunday Sta WASHINGTON, D. C, UPTIRN WIDENED BY RETAL TRAE, STEEL AND AUTOS Motor Orders Held High Enough to Keep Plants Busy Until March. LULL IN STORE BUYING LESS THAN SEASONAL Demand Shifts to Industrial Cen- ters From Farm Areas—Whole- sale Trade Active. BY RADER WINGET, Copyright. 1935, by the Assoclated Press. Business took a confident step last week into the new year and pointed with pride to substantined gains. Steel and automobile production and general retail trade were un- doubtedly the leaders, but electric power production and car loadings de- clined somewhat less than seasonally. The week was broken by the New Year holiday, and many plants were closed for inventory, but the usually dull period was enlivened by numer- ous contra-seasonal developments sus- taining or adding to some previous gains. Steel production was at 39.2 per cent of capacity as estimated last week for the entire country by the American Iron & Steel Institute, the highest point for that usually very quiet week in four years. That point marked the eleventh consecutive w g>k- I1y increase and was 4 percentage points above the previous week. Automobile production was & ma- jor spur to steel. Motor orders were Treported high enough to hold assem- | bly lines until March. Employment month and 60 per cent above this period last year. Dealers opened the annual New York show with high hopes of laying the basis for sales records for recent years. Retail sales dropped last week from the previous week, but less than the same seasonal fall a year ago. De- mand is reported by authorities as shifted to industrial centers from agricultural communities, a change | noted by an unusually early influx of buyers in the wholesale centers. Power Total Down, Electric power production for the week ended December 29 was reported by the Edison Electric Institute at 1,650,467.000 kilowatt hours, an. in- crease of 7.2 per cent over 1933, but a drop from the previous week. The highest' Christmas week on record. Freight movement on class 1 rail- roads totaled 425,120 cars for the week ended December 28, off 122,775 | cars from the previous week and un- The drop from the previous week however, was less than usually experi. enced at that time of year. Some of the reports from individ- ual Federal Reserve districts follow: BOSTON.—General business in the first Federal Reserve district con- tinued moderately slow, but the fish- ing industry showed substantial bet- terment. Fish landed last week in Boston, largest salt water fishing port, weighed 2,830,000 pounds, and re- ceipts were $155,411, against 2,500,000 pounds and $90,000 in receipts in the similar period last year. Cotton man- ufacturers reported slow sales, and wool circles found only a fair demand. NEW YORK —Retail trade last week in the New York metropolitan area of the sécond Federal Reserve district was reported quiet, with dol- lar volume of sales about equal to last year. The response to January sales was said to be spotty. For the week ended December 29, however, parcel deliveries in the metropolitan area were 31 per cent over the same week a year ago. the Buffalo area were about un- changed from the previous week. Richmond Report Good. RICHMOND.—Business was re- ported up to or above seasonal in Richmond, Washington and Baltimore in the fifth Federal Reserve district. Debits to individual bank accounts were up $13.000,000 in Baltimore and $4,000,000 in Richmond last week over a year ago. Washington and Baltimore retail trade was estimated at above last year, and Baltimore re- ported a slight employment gain, but slow construction. North Carolina mills remained closed. PHILADELPHIA. — Merchants in the third Federal Reserve district re- ported the demand for New Year celebration supplies the best since 1928. Jewelry trade in December was given as 30 per cent over 1933, and carded and combed wool prices ad- vanced on a strong demand. Hosiery manufacturers indicated business fell last week, while the draperies in- dustry was dull. Increased tempera- tures cut anthracite sales for the week ended December 22. ¥ CLEVELAND.—Under the impetus of increased steel and automobile pro- (Continued on Second Page.) | now is estimated 35 per cent over last | week-to-week decline was less than | seasonal, and the total marked the| der the comparable period of 1933./ Steel operations in | BRITISH INDUSTRY CONTINUES STEADY RISE IN NEW YEAR 36,000 More Persons Have Jobs Than Month Ago. Bankruptcies Drop. COTTON, COAL, MOTORS SHOW LARGEST GAINS Insurance Selling in Record Vol- ume and Railroad Traffic Holds to Higher Trend. Special Dispatch to The Star. NEW YORK, January 5—Cables | and radio dispatches to Business Week give the following survey of business | abroad for the week ending today: LONDON—"British business boomed into 1935 with 36,000 more persons | employed on January 1 than on De- cember 1, with a record of 600 fewer bankruptcies than in 1933, with in- | surance selling in record volume and | with rail traffic steadily increasing. | Cotton, coal and motors show the best improvement. A larger volume of money flowed into new issues than in any year since 1930. “Government-urged rationalization | of various industries, especially steel, has been sufficiently successful to lead | England to expect similar moves in | the textile industry this year. Present ! plan is to scrap 10.000.000 spindles | with the aid of a government grant of | about $10.000,000, the plan depending |on the ability of spinners to agree among themselves on what spindles | shall go. If the plan is successful (and public opinion is strongly be- | hind the government more than the industry) it is likely that further ra- tionalization, previously rejected, will | be reconsidered. “New Yorkers, familiar with the in- genious apartment house projects of Fred F. French, will be interested in | the rumor current in London that the | New York operator has secured an | option on property along the Thames in Grosvenor road and plans to build there another ‘Tudor city.” Its con- | templated 1,300 apartments with a total of 4.370 rooms in a group of buildings around a central park will not be unlike the little community in New York's East Forty-second street. |London has recently become very ‘apartment conscious.” Small, com- pact, furnished and unfurnished units have been renting as fast as they can be prepared. French Buying Improves. PARIS—“While the French business outlook in the last few months has not been favorable, the recent slight improvement was reflected in the im- | proved holiday buying, which was more animated than in 1933. The olitical future looks much brighter han a few months ago. and there s some confidence now that the Flandin government will straighten | the financial situation. This confi- dence reached the man in the street when the price of a loaf of bread dropped 13 per cent. “Still indicative that the country is going through a severe deflation and all the ‘curtailment’ that Americans must remember goes with it is the increase by one-third in the number of registered unemployed in 1934. Paris is preparing to combat this de- cline in the amount of work available by inaugurating a slum clearance pro- gram and going ahead with building plans for the 1938 exhibition.” Berlin Is Optimistic. BERLIN—“Optimism is more gen- eral in Berlin than in some years due to the improved international outlook and to the continued expan- sion of domestic business. Two less favorable factors are the new con- troversy over the guaranteeing of Austrian independence and the con- tinued difficulty of carrying on ex- port business. “The advance of the bond index during December from 92.07 to 94.09 has roused fresh hopes that the gov- ernment may be able to carry out its conversion operations, long planned, but always thwarted by unfavorable developments. “Abnormally warm weather is mak- ing it possible for construction activ- ity to continue at a steady pace and has prevented the usual seasonal de- cline in the number of employed. “In connection with the Nazi reor- ganization of business to fit into the system of the corporate state Berlin is now informed that the regional divisions will correspond with the 13 new areas which in future are to be the ‘provinces’ of the Reich. “Nazi promoters of the reform point out with particular satisfaction that it will not be possible in future for an individual firm to enjoy di- rectly all the benefits of a trade as- sociation without being a member and paving membership fees. Under the new ‘Magna Charta’ of business, each firm has to register with the compe- tent organization and become a member.” Industrial Leaders Oppose Curb on Qutput And Price Fixing by Codes, Survey Discloses Special Dispatch to The Star. EW YORK, January 5.—Amer- N ican industry is _strongly against limitation of output as an_economic principle, es- pecially if imposed by the Government. It also is against price- fixing by code. It might, however, favor a code-controlled open-price plan. These conclusions appear evident as a result of a cross-section of busi- ness opinion collected by the Associ- ated Business Papers, Inc, which is sounding sentiment with an “eco- nomic ballot,” printed in 17 member magazines. A large percentage of readers who voluntarily fill it out and mail it here are heads of their own firms. A question on the ballot reads: “In your line of business do you favor limitation of industrial output—by Government control? By industry control?” The answer to Government control of output is a re- | the [ 4 sounding “no.” Only among a few hardware and shoe retailers are there scattered “yeses.” Output control by industry, how- ever, has more supporters, though the plan is voted down almost 2 to 1. The paint, bakery and hotel indus- tries are solidly against it. Ratios against it in other industries are: Shoe factories and stores, 8 to 5; chemical plants, 50-50; steel plants, foundries, metal fabricators, 100 to 2; oil refiners and distributors, 7 to 6; food packers and canners, 7 to 2, and hardware producers and retail- ers. 50-50. ‘The price-control question on the ballot reads: “In your line of busi- ness do you favor a plan for control of prices—by a code provision estab- lishing price-fixing? By a code pro- vision establishing an open - price plan?” Definite price-fixing, thus far, has been voted down in the ratio of 4 to 1. In the steel industry alone, total vote received up to today [} was 101 against price-fixing and 31 for it. Every other industrial group, however, registered heavier propor- tions on the “no” side. The oil indus- try was negative by a ratio of 11 to 3; shoe producers and retailers, 13 to 2; machinery producers, 6 to 2; hardware manufacturers and produc- | ers, 38 to 10; meat packers, 8 to 2; | hotel and restaurant men, 4 to 1, and so on down the line. On the question of code-controled open-price plan, the division of opin- jon was about 50-50. Paint manu- facturers favored it 3 to 2, foundry- men, 5 to 3; oil refiners and distribu- tors, 8 to 5, and Mardware retailers, 19 to 14, but they were outvoted by other trades. Meat packers were nearly 8 to 1 against it, the shoe in- dustry, 9 to 6; steel makers, 6 to 5; bakeries and chemical plants, 50-50; machine shops, 5 to 3, and hotels and restaurants, 4 to 3, (Copyright, 1035.0 /,/// o= Wil ) iy 7 SUNDAY MORNING, JANUARY 6, 1935. ; 777N 4 //1// /114 | [III/A Classified Ads Pages 5 to 10 BRILLIANT ARRAY OFAUTOS VIEWED New York Show Models Represent Expenditure of Many Millions. BY JOHN A. CRONE. Special Dispatch to The Star. NEW YORK, January 5.—When the thirty-fifth automobile show opened here today there was revealed, in an elaborate modern setting, more than 200 complete passenger cars and chasses, representing 28 makes— results of the efforts of nearly 12,000 automotive engineers over the last six months. This brilliant array of 1935 models is the fruit of months of designing, planning and preparation, and the expenditure of millions of dollars. One company alone, General Motors, spent $35,000,000 in new machinery, tools and plants, for its latest models. Simplicity, safety, speed and roomi- ness, rather than decorative devices, are emphasized in this year's models. There are novel spring suspensions, including the independent front wheel mounting and the semi-elliptic. Springbases are longer, or the distance between the points of attachment of the front and rear springs has been lengthened, which makes practical the increasing of body lengths several inches without an increase in wheel- base. Then there is the softer spring (lower deflecting rate) with double- acting snubbers to check any ten- dency toward pitching. One of the safety features is the reduction of the pressure by the foot necessary to disengage the clutch. This, one of the many ease-of-control introductions, is a notable achieve- ment when it is considered that the power of engines has been stepped up, requiring a greater spring pressure of the clutch. This year the weights of many cars have been reduced, thanks to the rapid progress in alloys. Thus many 1935 models, without sacrificing either safety or dependability, have less car pounds per horsepower to propel and less pounds for brakes to stop car movement and less wear on braking materials. The public demand for more riding comfort without sacrifice of body space—the ride-between-the-axles- idea—is being met by moving the en- gine forward and over the front axle, gaining in some models as much as nine inches and materially increasing overall body length, without a cor- responding increase in wheelbase. Some cars are nearly two inches lower than formerly, as a result of a modern spring design which makes practical the lowering of the center of gravity, without sacrificing body headroom. (Copyright. 1935.) MOODY’S INDEX SHOWS RISING TRADE TREND By the Associated Press. NEW YORK, January 5.—Statistics appearing during the last week in- dicated a rising business tendency. ac- cording to Moody's index figures for freight car loadings, electric power production and steel ingot output. These index figures are adjusted for seasonal variation—that is, if the change from the previous week should coincide with the normal seasonal change, the index figure would be un- changed. Com- . bi L Car oadings, 63.0 61.9 ] 2 58 1 Latest week Prev. week. Month ai Year ag 1934 Hig 1934 Low. (1928 weekly average eq! (Copyright. 1935. by o Fot e d. % 4 2 i > FEorsce 83r223 = g3 £ 5w 3 g December Profits of Carriers Likely to Top 1933 Marks By the Associated Press. NEW YORK, January 5—Net operating income of the majority of the class 1 railroads during December, to be published short- ly, is estimated to be slightly better than in the same month last year despite the fact that unseasonably cold weather over a large area during the last 10 days caused & drop in car loadings. One factor calculated to benefit the carriers income is the sharp curtailment in operating expenses put into effect late in November. |MARKETS EXTEND GAINS IN CANADA First Sessions of 1935 Helped by Cheerful Corporate Reports and Dividends. Special Dispatch to The Star. TORONTO, Ontario, January 5.— The first sessions of 1935 in Canadian higher, with the industrial list led by specialties and the junior issues in demand on the mining board. ‘While corporate reports are making their appearance and dividend dis- bursements are verifying the improved results during the last year over 1933, in greater abundance during Decem- ber than for many years. Ford of Canada was one of the most active local stocks, greeting the new 1935 car with new high prices on the market. Among the issues showing strength are the railroad equipment shares. These shares are influenced partly by better results for Canadian railroads in 1934, but chiefly by the fact that it is rumored the government will finance the purchase of new equip- ment by both the Canadian National and Canadian Pacific railroads. (Copyright. 1 by North American Newspaper Alliance. Inc.) FOREIGN BONDS MOVE HIGHER IN DECEMBER Special Dispatch to The Star. NEW YORK, January 5—Repre- sentative foreign bonds advanced 1.76 per cent during December, according to the Foreign Bond Association, Inc., index of 50 representative issues, which rose from 5852 on November 30 to 59.55 on December 31. The 30 Eu- ropean issues in the index rose 2.58 per cent during the month, while the 4 Australasian issues rose 1.78 per cent The 16 South American issues declined 0.26 per cent. Record Crowds stock markets found prices creeping | retailers report that money appeared FEWER SECURITY EXCHANGES LEFT |Produce Mart Is Latest to Give Up Trading in Bonds, Stocks. BY CHAS. P. SHAEFFER (Associated Press Financial Writer.) Fewer security exchanges remain on the list of the Securities and Ex- change Commission to carry on the 1935 tussle for business. Since the advent of the S. E. C. to power last July, half a dozen minor exchanges have closed their doors, merged cr announced their intention to_quit. ‘The decline in speculation and lack of public interest in securities have left some of the small local exchanges hanging on the ropes. At least three of those which have fallen by the way- side left the field simply because business was too slow. Two yieided o the frowns of the 8. E. C. ‘The latest to join the retreat from the field was the securities end of the New York Produce Exchange. It was entirely a voluntary move on the part of the Produce Exchange. According to its announcement, it will give up securities trading by the end of Feb- ruary. The produce exchange went into se- | curities in the late stages of the big [ bull market. For a time it did a | hustling business in trading on a | “when-issued” basis. It also had a list of permamently | issued securities, mainly in what Wall Street calls the “penny” division. But the depression dearth of new financing and promotions virtually eliminated “when-issued” business. Some of the smaller exchanges have been considering giving up their status as registered exchanges and moving into the over-the-counter field in an effort to keep going. The Hartford, Conn., Stock Exchange is said to have looked into the possibilities of doing that. 3 Fourteen local exchanges have been given temporary exemption from regis- tration as national securities ex- changes, among them the Honolulu, Manila and Philippine Stock Ex- changes. Twenty-three have been fully registered. That makes 37 still within the jurisdiction of the S. E. C. But some of those in Washington who have been following the fortunes of small exchanges in the last year and watched the struggle a number of them to keep going would not be surprised to see the ranks thinned further in 1935. NEW YORK LIVE STOCK. NEW YORK, January 5 (B (Btate of riculture — e and HET including 4,170 ew so0d orl . Sheep steady; S State, 9.50. choice ewes. 4.00. Are Expected At Home-Furnishings Shows CchGO, January 5.—With furnishings shows open in made preparations for the largest at- years, according to furniture men, manufacturers during the semi-annual By the Assoclated Press. attendance expected to be the largest in receni years, two important furniture and home Chicago Monday amid forecasts of marked improvement in business. The American Furniture Mart has tendance for any show since 1930. With the outlook for business more promising than it has been for -three more than 6,000 buyers from all sec- tions of the country are expected to see displays of approximately 600 two weeks national market. At the merchandise mart, advance [} buyer registrations for the furniture and ailied markets already exceed those of the Summer show by 49 per cent. Approximately 125 carloads, in- cluding 11,000 pieces, have been ship- ped in by 668 exhibitors participating, in the furniture, floor covering, lamps| and house furnishings markets. According to the American Furniture Mart, manufacturers have reported ! that prices cn the whole will probably | be slightly higher than the prevailing level of the past Fall, but not enough higher to cause retail merchants any increased consumer resistance. Reports from retail stores, it was reported, indicate stocks of furniture on hand are universally low and that most buyers are coming to the market this season prepared to replenish stocks for 1933, - ' $9,500,000,000, BUSINESS WAITS FOR CLARIFICATION OF FEDERAL PLANS Roosevelt’s Relief Stand Encouraging—Budget Problem Is Next. PRESSURE INCREASED AS LIVING COSTS RISE Wholesale Commodity Index Hits Four-Year Peak in Week. Higher Taxes Due. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, January 5.—As the next impulse to business, in one di- rection or the other, will come out of the contents of President Roosevelt's messages to Congress, it was to be expected that the holiday period would be followed by dullness in re- cently active lines of trade and hesi- tation in the markets for securities. While there was much that was idealistic in President Roosevelt's Fri- day address, it took a realistic and practical view of the relief question and one that gave satisfaction to business interests long demanding that the Federal Government be less generous with its spending and that “made work” be done at a rate of pay that will not compromise private ine dustry. Business was also encouraged by the statement that such appropriation as has to be made for public works will be “within the sound credit of the Government” to maintain it. Ale together, the message confirmed the impresssion that in matters of nas tional economy the President is all the time becoming more conservative. The pattern and policy of many industrial and financial commitments will be made by what the administra- tion sets forth in the budget message Monday and by such outline of legis- lation as Congress presents at the opening of its session. The public has now read and di- gested the many financial reviews printed during the week and has taken note of the optimistic tenor of most of the opinions expressed therein. There is a widespread feel- ing that recovery is on the way, though its pace this year may be dis- couragingly slow to the impatient. If this mood can be preserved, it will do more than any other factor to stimulate the flow of capital into | those lines of industry that most need help and to which the largest number of the unemployed are related. The rise of 4!, points in iron and steel production to 41 per cent of capacity and the statement that $205.000.000 has been used in better housirg are encouraging. Living Costs Rising. In his message to the New York State Legislature Wednesday, Gov. Lehman said, “Relief must go on as long as the present economic crisis | remains with us.” This is the crux of the financial problem immediately facing State and National law- makers. They must work out the most equitable form of administering relief. The pressure on those with- out employment, as well as on those who are receiving direct or work re- lief, is increasing with the steady rise in the cost of living. This week the wholesale commodity price index has touched the highest point in four years. The conspicuous gains have been in foodstuffs. It is in them that the advances in the next six months will be greatest. Farm products, as a group, show an appre- clation of 30 per cent since the end of 1933. The average rise in wheat, corn, oats and rye has been 22 per cent. Other food products are up 20 per cent, with beef 50 per cent high and lard double the cost at this period last year. Cotton costs 25 per cent more and rubber is up 45 per cent. _ The major items in arbitrary liv- ing costs—namely, food, clothing, fuel and, quite commonly, rents—are a more severe tax on the family budget than they have been since the early days of the depression Higher Taxes in Prospect. If the intention is to throw back on local communities and on the States a larger proportion of relief expense than they have heretofore borne, this will mean either greater direct taxes by such political divisions or larger | issues of bonds. There appears to be j agreement that Federal income taxes are not to be increased this year. On the other hand, there will undoubtedly be a spread of the sales tax method for meeting emergency costs. About 30 States already have it in effect. The | impracticable Townsend old-age pene sion plan does not suggest the sales tax as a new idea but one whose re- turns are to be multiplied. A recent survey made by the Na- tional Industrial Conference Board indicates that total taxes annually paid in the United States amount to or one-fifth of the present yearly income of the Nation. A fair revision of the tax laws would place a larger levy on those with the highest incomes, a reduction in the normal tax in the lower brackets, re- moval of the exemptions from all civil servants, some of whom have ine | comes, tax free, of 315,000 to $17.500, and the application of the tax payment principle to every citizen earning over $500 a year. The sales tax has the virtue of reaching thousands who today should contribute toward the cost of government but by various indirect methods avoid it. (Copyright 1935, by North American Newspaper Alliance. Inc.) SMALL SAG REPORTED IN TRANSIT REVENUES Special Dispatch to The Star. NEW YORK, January 5—Transit tevenues for the calendar week end- ing with Saturday, December 29, 1934, as reported by a representative group of companies recorded slight reces- sions from last year as shown by the transit journal Indicator. which stands at 99.90, as compared with the corresponding week in 1933. “This is a slight reduction from the figure for the week ending December 22, 1934, for which the Indicator stood at 101.23,” it is stated in the report. “Mixed trends characterized the last week of the year, which included the Christmas holiday.” 3