Evening Star Newspaper, March 10, 1935, Page 59

News of Markets Pages 1 to 4 Part 5—12 Pages BANKS T0 RESUME D. . LOAN DRIVE SIDDONS REVEALS Modernization and Other Needs to Be Stressed in Advertising. MORE THAN $516,000 GRANTED UNDER ACT Campaign in Capital Newspapers Will Be Started in Middle of This Month. BY EDWARD C. STONE. Member banks of the District of Columbia Bankers' Association are to resume their joint advertising cam- paign for modernization loans under title 1 of the national housing act for other types of loans, Frederick P. H. Siddons, president of the association and secretary of the American Secur- ity & Trust Co., announced yesterday. ‘The renewed drive will start the mid-| dle of this month. Advertisements will appear in all the Washington papers and will run from four to six weeks, President Sid- dons stated. The association will also use the radio, co-operating with the Federal housing administration in its better housing program. The banks here have already ex- tended credit to more than 950 bor- rowers, amounting to over $516,000, under title 1, resulting in a large amount of repair and alteration work and other substantial improvements that might otherwise never have been undertaken. President Siddons pre- dicts an increasing demand for this type of credit this Spring and says the banks are solidly behind the bet- ter housing program, anxious to as- sist in every way possible. Charges are frequently heard that the Washington banks are unwilling to make loans. The fact they ad- vertise for them would seem to refute all such claims. As a matter of fact the banks live by loans, have a great deal of money on hand which they are anxious to put out and are con- stantly hunting for new loaning op- portunities. They do, however, refuse to grant loans unless they are sure the money can and will be paid back. Auditors Plan Spring Meeting. R. Earle Haycock, chairman of the auditors’ section of the District Bank- ers’ Association, received-word yes- terday that the third annual Eastern Regional Conference of Bank Audi- tors and Controllers, sponsored by the national association, will be held in New York City on April 27 and 28 at the Hotel Montclair. On Friday sessions will be held in the morning, afternoon and evening, while the clos- ing session will take place on Saturday morning. Chairman Haycock states that the program, in process of preparation, promises to be of timely interest to those engaged in audit and control activities and will include various prominent speakers and round-table discussions. It will be recalled that the auditers’ section of the District Bankers’ Asso- ciation, which also is affiliated with the National Association of Bank Au- ditors and Controllers, sponsored the first regional conference in Washing- ton at the Willard Hotel two years ago. Last year a second conference was held in Philadelphia, with approx- imately 200 auditors and controllers present. The New York conference is ex- tending every effort to meet the high standards set in the regional meetings held in this city and Philadelphia and is urging the attendance of Wash- ington ‘bankers. It is expected that many of the members of the Wash- ington auditors’ group will arrange to attend the meetings. High Marks Sei on Exchange. Nearly all the bonds listed on the ‘Washington Stock Exchange are now selling at high marks for 1935. In light trading yesterday Washington Gas 5h, 1958, recorded two $1,000 transactions at 104%. Stocks were neglected. The end of the week found such issues as Anacostia & Potomac R. R. first 5s, Anacostia & Potomac R. R. first guaranteed 5s, 1949; Capital Traction 5s, Potomac Electric Power Consolidated 55 and Potomac Power Refunding 5s, Washington Gas and Washington Railway & Electric bonds quoted at peak prices. Some of these issues are not only the highest they have been this year, but for several years. Washington Gas Light 5s, 1960, fur- nished the surprise of the week when they changed hands at 115':. In spite of some of the best prices on record being bid for local bonds, there are comparatively few offered for sale. Brokers say they nave a lot of orders on their books that they can’t fill. The same is true of the leading stocks on the board. Financial District Notes. Robert N.-Harper, president of the ‘Washington Auditorium Corp., has recefved many congratulations on the payment of coupon No. 5 on the first trust bonds. There are $400,000 of these bonds outstanding and they had been in default since 1927. If the Auditorium had been freed from taxes, as its greatest competitor, Con- stitution Hall, has been, from $7,000 to $8,000 a year could have been paid holders of Auditorfum securities, Col. Harper says. The Munsey Trust Co. directors have voted the regular quarterly divi- dend of $1 per share on the out- standing stock, pavable April 1 to stock of record March 22 and an extra disbursement of 25 cents per share payable at the same time. Hilleary G. Hoskinson, general chairman of the annual convetition of the District Bankers' Association, to be held at Hot Springs in June, has practically completed his special com- mittees to arrange for the meeting. Chairmen and other members will be announced shortly. GRAY CLOTH STEADY. NEW YORK, March 9 (#).—The price situation in the gray cloth mar- ket has not shown any particulsv improvement, although inquiry broad- ened considerably with a number of sales going through at current price levels. » FINANCIAL AND CLASSIFIED WASHINGTON, D. C, BRITISH POUND SLUMPS AGAIN AT WEEK’S CLOSE ' |Seriousness of Balkan War Situation I and Recent Advance Blamed for Sharp Recession. By the Associated Press. Another sharp slump in the British pound sterling upset foreign exchange markets yesterday. Increasing seriousness of the Bal- kan war situation and the recent sub- stantial advance in the British cur- rency were believed to have invited both profit taking and short selling | during the short session of all markets. In London the dollar gained 1'% cents, closing at $4.7734 to the pound sterling and in New York the British unit later extended the decline to 234 | ‘clent.s. ending at $4.76, the low of the: ay. In Paris the dollar was steady at an equivalent of 8.673 cents to the franc and in New York francs were .01 of a cent higher at 6.68 cents. Other lead- ing gold units, including Dutch guilders and Swiss francs, also were higher in terms of both sterling and dollars. Based on the france at its final New York rate the dollar was at a discount of 70/100ths of 1 per cent compared with 54/100ths on Friday and a pre- mium of 69/100ths a month ago. INVESTORS STUDY 1934 CORPORATION REPORTS CLOSELY Management and Financial Policies Show Wide Variations. BY THOMAS E. FLANAGAN. Associated Press Financial Writer. NEW YORK, March 9.—With| ledgers closed on 1934, between 10| and 20 millions of investors are now | poring over earnings reports and bal- | ance sheets of companies in which | their savings are placed. It is important for the investor to | know whether net has been chopped | by extraordinary charges, such as processing taxes. | Statements must also be searched | for unusual additions to income—| profits made which will not appear | again—from such things as the sale| of real estate or securities or other out-of-the-way sources. While a company's money-making | abilities hinge always upon general| business conditions, management and | financial policies also play a big part. | Statements Are Theoretical. | These things are to some extent re- flected in the balance sheet. These statements are high theoretical and give only a relative idea of what re- sources a concern has and what it owes as of a particular date. For instance, in the matter of as- sets, every accounting apprentice is immediately taught that about the only two items which mean what they_ say are “cash in banks” and “securi- | ties at market.” | One example of the extent to which | theory enters into every balance state- | ment is seen in the entry “plant and equipment.” Whereas a factory in- | cluded in this item may be valued at | $2,000,000, its essential worth to the| company as a money-maker might be] far less than that sum, or even nothing. Although it may have cost $2,000,- 000, it may have become run down, its machines out of date and its pull- ing power reduced to zero by some | shift in economic trends, or the dis- covery of a substitute which renders its products obsolete. “Book Value” Differs. | Another factor which admits of | wide theory is a “book value,” the| amount which would return to the commmon shareholder after prior claims | if the company were to liquidate as-| sets as carried on the balance sheet. No two companies follow the same accounting practices, although con- cerns in the same field tend to show some degree of uniformity. Differ- | ences in methods among companies m the same industry are matters of | individual policy. It is axiomatic in financial circles that balance sheets can be made to do tricks calculated to befuddle even expert accountants and bankers close ta the company. COUNCIL IS APPOINTED T0 HELP BANK CHAIN By the Associated Press. SAN FRANCISCO, March 9— John M. Grant, president of Trans- America Corp., has announced the di- rectors had appointed an advisory council of 14 to assist A. P. Giannini, president of Bank of America, in di- recting the activities of the banks ' controlled by Transamerica. | L. M. Giannini, son of the builder | of the far-flung Transamerica system and former president of it, will head the council. | “The council will be expected to devise ways and means to take imme- diate advantage of any Federal legis- | lation that will permit branch bank- ing,” Grant said. . SUGAR MELT INCREASES. NEW YORK, March 9 (#)—The sugar melt of the 13 United States refiners from January 1 to March 2 was 670,000 long tons against 510,000 in the like period last year. De- liveries amounted to 575,000 tons against 475,000. | ment has issued a decree co-ordinat- | setting up local boards composed of TRADE UNSETTLED AS BRITAIN' SEES POUND GO LOWER Flow of Funds From London Anticipates Paris Cheap Money Policy. Special Dispatch to The Star. NEW YORK, March 19.—Cables and radio dispatches to Business Week give the following survey of business abroad for the week ending today. LONDON.—"The week’s flurry in the foreign exchange market—with the rapid decline of sterling—has un- settled business in England but is| causing no panic. The rapid flow of | funds from London to Paris, which is causing the drop in sterling, is caused by the desire of the French to get their gold in Paris before the government’s cheap money policy be- comes operative. First withdrawals | from London began as long ago as| January. It is believed possible in | may be dragged off gold by the new competition from British exports as ;l:efl éwund sags below its old parity of “Frightened ‘by the move, however, politicians are eagerly turning to trade reports to prove to the public that business has not suffered under their guidance, and that there should be no sharp shift to labor and socialism. “Industrial production in 193¢ was | about 12 per cent greater than fh | 1933, and 18 per cent above the 1932 | output. Manufacturing industries | showed the greatest expansion in ac- !c!vity. their output last year being nearly 2 per cent above the 1929 figure. Britain's 12 per cent increase in production compares with an in- crease of 24 per cent in Germany and 4 per cent in the United States.” Paris Is Not Worried. PARIS.—“For the present, France is not worried over the decline of sterling exchange, but if the movement con- tinues and is followed by further dol- lar devaluation, the situation will be- come serious, not only for France but for all of the countries remaining on the gold standard. Flandin can be expected to handle the situation firmly. Fortunately, his backing is stronger ncw than it was several weeks ago, though it could change quickly since the agrarian bloc in France is solidly opposed to him. “The business outlook has not im- proved. Activity on the Bourse is restricted. Employment has not re- covered. Deposits in the postal sav- ings banks have increased 700.000,000 franes in the last two months, thus relieving the treasury of the need to borrow. “Following the reorganization of the | country’s broadcasting system so as to include owners of receiving sets on ! the new control boards, the govern-| ing all forms of transportation and transporters and clients. These local groups are to make recommendations to a central board of transportation which will in turn back legislation making the proposals compulsory.” BERLIN.—“The Leipzig Fair, Dr. Schacht’s new plan to subsidize ex- ports, the flurry in sterling exchange (Conticued on Second Page.) - . STUDEBAKER REDUCES PRICES ON 1935 MODELS Special Dispatch to The Star. SOUTH BEND, Ind., March 9.—Free from legal entanglements and fit for | action, the new Studebaker Corp. to- day sharply reduced delivered prices of the 1935 cars. i “Studebaker is down to fighting trim,” said Faul G. Hoffman, president. “We've shaken off many burdensome expenses. We have millions of dollars in new capital. We have no bank loans. We have no preferred swck.| Our plants have been written down from $49,000,000 to $15,000,000. All these things have reduced our manu- facturing costs—and we're passing the reductions on to the public right away. “The price reductions are made without reducing the quality of our cars in any way.” Retailers to Weigh Plans For Pushing “Trade-In” Sales ITH housecleaning time im- minent in American homes, department store mer- chants are planning te study the possibilities of the “trade-in” market existing in used merchandise which might serve as the stimulus for new purchases in retail stores. While questioning whether or not the practice is sound merchandising policy, the Merchandising Division of the National Retail Dry Goods Asso- ciation announced its intention of making a thorough-going survey of “trade-ins” during the next few weeks. Although furniture stores have come to accept the trading in of old furni- ture, refrigerators and radios as an established practice in their business, the practice up to this time hastnot been widely adopted in the depart- ment store field, according to T. L. Blanke, general manager of the Mer- chandising Division. The study will seek to unearth the disadvantages as well as benefits to be found in “trade- | in” methods, he said, and record the experiences of department store mem- bers in the organization in the prac- tice. Not ‘only Spring weather, lending | the urge to American home owners to dispase of out-serviced merchandise for new , opens the possi- bilities of the “trade-in” market, but the influence of the Federal Housing Administration and other Government agencies in encouraging home mod- ernization and home building will broaden the sales potentialities in this field, according to the Merchandising Division LI SUNDAY OPTIMISM RULES MOST REVIEWS OF BUSINESS AGTIVITY Freight Loadings Register Best Gain—Steel and Auto Rates Rise. CONSTRUCTION REMAINS LAGGARD IN UPTURN Electric Output Holds Ground, but Lumber Total Moves to Lower Levels. BY RADER WINGET, Assoclated Press Financial Writer. An optimistic interpretation of the current position of national business and industry was voiced last week by most analysts. Of the major straws in the trade winds, carloadings reports floated further than the rest. For the week ended March 2, there were 604,642 cars loaded, a gain of 9.4 per cent over the week before. All classes of freight increased to a total above the usual seasonal gain, although the aggregate missed by a thin margin the totel for the like week of 1934, Automobile production last week was estimated by Cram’'s at 86973 units against 83899 units the pre- vious week. Steel production last week was 48.2 per cent of capacity against 47.9 the previous week as estimated by the American Iron & Steel Institute. Analysts reported the recent de- clining trend has been halted, al- though the opening of books for orders in the second quarter failed to bring the expected rush of buying except in flat rolled steel. Steel Makers Hopeful. Steelmakers are looking hopefully toward the expected expansion in out- door work and production of farm machinery to pull them out of any | London that Holland and Belgium | drop that might be occasioned by the stocking up indulged in by the motor industry earlier this year. Electric production practically held its own for the week ended March 2, but lumber production for the same period declined. The lumbermen, however, pointed out that both ship- ments and orders were ahead of pro- duction and Spring construction work was expected to contribute a substan- tial boost in the near future. ... ... General industrial production dur- ing the present mdnth is expected by some analysts to show only slight increases unless construction activity expands, as it usually does at this time. The new Belgian trade treaty, which was heralded as a benefit to general trade. has been attacked by those industries, particularly cement and steel, which claim they stand to lose through downward adjustment of the tarift wall. Another foreign development which had its effect on trade was the gyra- tions of the pound sterling. A few commentators feared a ‘‘currency war.” But a sharp recovery later in the week laid to rest some of the worries over the exchange situation. First qualms over uncertainties in- cident to re-enactment of the national industrial recovery act before it ex- pires June 16 were in evidence in some quarters, and a few analysts raised the cry that confidence would not be restored to business until Congress | either kills the N. R. A. or extended its life. District Reports Given. Individual reports by Federal Re- serve districts for last week follow: BOSTON.—New England’s shoe in- dustry entered the final week of its pre-Easter spurt anticipating a show- ing as good as last year when business was best since 1929. Wool trade ex- perienced a better than normal week. Cotton manufacturers, however, re- ported slowness due’ to a withholding of buying orders. NEW YORK.—A combination of erratic weather and a late Easter caused retail trade in the New York metropolitan area to fall under 1934 levels, and some retailers predicted March would make a poor showing. Mail orders were higher than the previous week but under the expected total because of the late Easter, and the arrival of buyers was the lowest this year. PHILADELPHIA —Retail trade in the third district was larger during the last week of February than when the month opened, but against 1934 the figures were less favorable. The entire month of February, however, showed retail sales above the same period of 1934. _ CLEVELAND.—A combination of increased steel production and favor- able weather boosted department store sales in the fourth district around 1 per cent, but other business was about unchanged. Richmond Gains Shown. RICHMOND.—Sharp rises in bank debits pointed the way to business improvement in virtually all lines in the fifth district. Baltimore, Rich- mond and Charlotte made particularly good showings.. Washington noted a substantial pick-up in residential building operations. Maryland new car sales were double 1934, and gen- eral industry was active in plant and equipment rehabilitation. Wholesale (Continued on Third Page.) - WOOL TRADE ACTIVE AT BOSTON IN WEEK By the Associated Press. BOSTON, March 9 (United States Department of Agriculture).—An ac- tive trade in the Boston market dur- ing the last week included moderate quantities of a fairly wide selection of domestic wools and large quanti- ties of fine wools. Lines for which demand was heavy were original bag lots df shorn French combing and. clothing 64s and finer territory at 58-60 cents scoured basis, average French comb- ing at 60-63 cents, and average 12 months Texas wools at 61-63 cents. Sales of Ohio and similar fleeces in- cluded strictly combing staple at 26-27 cents in the grease for fine or 64s and finer, at 27-28 cents for 58s, 605, ¥ blood; at 26-27 cents for 56s, 3 blood, and at 2315-24 for 485 , Y blood. . i MORNING, MARCH FROM HIM THAT HATH SHALL BE TAKEN— he Sundwy Star 10, 1935. Classified Pages S to 12 Ads F00D PRICES SOA FARINTWO YEARS Nation-Wide Rise Placed at 34.2 Per Cent by Fed- eral Experts. BY J. R. BRACKETT, Associated Press Business Writer. The rise in retail food prices since February, 1933, was estimated offi- cially yesterday at 342 per cent. This was a country-wide figure ment of Commerce. It was made clear that the increase was smaller in some sections and larger in others. not available. The following table shows the per- centage that food prices increased February 15 this year: All foods. ...... Cereals e Meats ..... Dairy products. . vegetables | Miscellaneous . *No change. iDecline. The increase in food prices has been steady over the last two years, the table revealed, but now apparently is continuing at a somewhat slower rate. Officials have predicted further gains. While high food prices find little favor in populous centers, they are sought by the edministration to give farmers higher earnings for their produce. A principal complaint of agricultural interests in recent years has been against the relatively low prices of farm products. The increase in prices, has not all gone to the farmer. however, The as a result of paying higher wages ers failed to benefit much last year because their crops virtually were wiped out by the drought. SECOND GOLD RUSH T0 ALASKA STARTS Procession of Machines Features Search for Metal at Higher Price Levels. By the Associated Press. SEATTLE, Wash, March 9.—The second great gold rush to Alaska is a procession of machines. Prospectors and miners will swarm into the territory in the Spring, but today Alaskans says the “gold rush of the machines” is under way. Giant dredges, drills and other heavy equipment is being rushed to Alaska on orders prompted by the $35 an ounce price for gold, and hopes the price will go to $41.50 this year, making it possible to derive great profit from workings heretofore dis- regarded. “Great quantities of heavy mining material are being taken to Alaska by ship, transported to airplanes, and flown into the interior, in the ex- pectation of a tremendous gold rush,” said Eugene Allen, Alaskan editor. “Today, & man can cover ground in two hours that would have taken him six months in the old days, so more gold territory is being opened up.” GLASS TREND FAVORABLE. NEW YORK, March 9 (#) —Active demand for certain plate glass prod- ucts, a gathering momentum in the glass container division and further improvement in the stemware and tableware section are the prime favor- able factors in the current glass trade pieture, says the American Glass Review, v calculated by experts of the Depart- | Figures for the different regions were from three different dates up to| distributor’s charges have risen also| and for other reasons. Some farm-| Grocery Volumes ' Far Ahead of 1934 OnTonnage Basis By the Associated Press. NEW YORK, March 9—Dun & Bradstreet says in a special survey of the grocery trade that the volume of sales now exceeds that of the same period last year by 10 to 15 per cent on a tonnage basis and 20 | to 25 per cent on a dollar basis. One Teason for the sustained increase, ing prices, which have spurred con- sumers to lay in supplies for the fu- ture. METAL QUOTATIONS SHOW STEADINESS Tin Recovers Most of Midweek Losses Later—Copper Trade Watches Conference. By the Associatec Press. NEW YORK, March 9.—With the exception of tin, non-ferrous metals ruled steady in moderate trading last week. Sharply irregular fluctuations in sterling exchange had their direct reflection in tin quotations here, -but midweek losses in the metal price had been almost completely recovered as the week closed. Interest in copper centered in the arrival here on Friday of leading Eu- ropean producers who are expected to confer immediately on a world copper | marketing agreement. Although offi- | cials have remained non-commital, the Impending conference was re- flected by a slightly steadier Euro- pean market on moderate business. ‘The domestic Blue Eagle price re- mained unchanged at 9 cents, although buying picked up moderately in the past day or so. Reported sales thus far in March are about 7,000 tons. | After a few offerings had been | absorbed at slight concessions at the vance in zinc reported in the previous ‘Week was generally established. Demand for lead was irregularly | distributed at unchanged prices. Anti- | mony was quiet and unchanged. U. S. STEEL SHIPMENTS By the Associated Press. NEW YORK, March 9.—The United States Steel Corp. reported today that its shipments of finished steel prod- ucts in February increased 49,082 tons to 583,137. The shipments in Janu- ary totaled 584,055 tons. In February, 1934, they were 385,500 tons. By the Associated Press. NITED STATES agricultural exports are showing further decreases. i According to the Division of Foreign Crops and Markets the export index on 44 leading farm products stood at 59 for January, the lowest for that month in more than two decades. For all commodities except cotton, the index dropped to 43 or less than one-half the pre-war e eozmlxnd showed me“mmu thxeuArym export ex sipce ; wheat in- cluding flolu'.npone of the lowest monthly exports on record; fruit, the second lowest January index since 1923, and lard, one of the lowest January indices so far recorded. May and June imports of cured pork into the United Kingdom from nen- Empire countrieyy may not the survey says, is constantly mount- | | opening of the week, a $3 a ton ad- | INCREASE IN FEBRUARY | Agricultural Exports Decline Still Further During Month LOWER COSTS AD | ~ RETAIL CLOTHIERS |Larger Stores Take Lead in Lifting Margin of Net Profit in 1934, By the Associated Press. | CHICAGO, March 9.—Men's ap- | parel merchants experienced a fair | turnover and lower costs and came out | of 1934 with a net profit, the sixth | ;annull Nation-wide business xurvey} | made by the National Association of | Retail Clothiers and Furnishers shows. | Summary of the recently completed | survey indicated profits were created in 1934 on a different basis than in| | 1933, one of several unusual circum- | stances in the trend of clothier’s busi- | s } ‘The margin of net profit among smaller stores, the survey revealed, was just a shade better than a year | ago—3.6 per cent, as against 3.1} Among larger stores, it jumped from 2 per cent to 5.2 per cent. The survey | showed big volume clothiers had the | | edge because of more efficient mer- chandising. Their profits were higher even though expenses were greater. | Pointing out that salary and°other expense items declined substantially, | the survey indicated small stores could hardly blame the retail code for their | less desirable showing. On the other | | hand, said the National Clothier, trade | journal of the association, raising prices—forcing the merchant to cut his mark-up—would be a circumstance confronting large and small stores FLURRY' INDICATES GREAT DELICAGY OF MONEY SITUATION Stabilized Currencies Held Vital Need for U. S. Busi- ness Recovery. DISTURBANCE CREATES ADDED UNCERTAINTIES Between 20 and 25 Per Cent of Late 1934 Improvement Wiped Out, Observer Declares. BY CHARLES F. SPEARE. Special Dispatch to The 8 NEW YORK, March 9.—The un- fortunate misconstruction of the com= ment of President Roosevelt on the status of the dollar and its sequel in the markets for securities and the foreign exchanges provided the lead- ing episode in Wall Street and busi- ness affairs this week The situation respecting the value of all international currencies is so delicate at the moment that any suge gestion of action affecting their future immediately becomes the basis for speculation as to the possible degree of inflation. There is little doubt that those countries most concerned with the present unsettlement of the exchanges are jockeying for a position and are gradually getting in form where they can begin to trade with each other. The decline in the pound sterling. the pressure of the gold bloc group and the demand here for further de- valuation all suggest an early arrival at a common point of negotiation. If not, one cannot be optimistic over the outlook for business recovery in the United States or in those nations with which it has active trade re- lations. Trade Gains Erased. The disturbance in the foreign ex- changes has added another factor to those adverscly affecting the volume of trade since the end of January. Between 20 and 25 per cent of the improvement that occurred from October to January 3 has been lost. This is reflected chiefly in speculative securities, as common stocks and junfor bonds. From the high level of the year. stocks this week showed an average decline of about 9 points and Jjunior bonds 3 points. Numerous railroad bonds are lower than in any previous phase of pessi- mism over their future. It is need- less to say that those now quoted between 15 and 20 cents on the dollar have discounted the extremes of re- organization, for if, in a debt scaling operation, they are to be exchanged for stocks. the future earning possi- bilities of the debtor companies should provide, an equity worth more than current bond appraisals. An illustration ci the need for re- adjustment of deb: is given by the president of the St. Louis & San Fran- cisco Railway in recommending that the annual interest charges of this system be cut from around $13,000,000 to $4,000,000. Such a slash would re- sult in placing $108,000,000 consoli- dated mortgage 4', per cent bonds, sold in 1928 at 97, on a non-income basis along with $10,000,000 of 6s of the same issue and compel a sharp reduction in the rate on $117,000,000 of prior lien 4 and 5 per cents. In 1930, when the Frisco was borrowing heavily from the banks, it was paying unearned dividends of 8 per cent on its common stock. This caused the trouble that bondholders are now being asked to rectify at heavy sacrifice. ‘When the promoters of the reckless policies of the “new era” begin to reform, they become more righteous than the suddenly converted inebriate. This writer believes that much rail- road debt requires downward adjust- ment, but that the junior bondholder should not be required to accept terms resulting in inordinate earn- ings for common stocks held by pres- ent managements, and so far escap- ing assessment. Treasury Loan at Premium. alike, and “the larger firms were ap- parently unharmed by it to any great extent.” Other highlights of the survey were: Advertising costs for small stores increased; for large stores it was less than for the previous year. Busheling expense was less for the small stores; greater for the large ones. Taxes were lower for the small group; higher for the large group. Accounts receivable charged off were slightly lower for the small stores; slightly higher for the large ones. LUMBER MIL.LS REVEAL JUMP IN SHIPMENTS By the Associated Press. NEW YORK, March 9.—Lumber shipments from mills for the week ended March 2 were the heaviest of any week of the year and were 22 per cent above thase of the corresponding period of last year, reports the Na- tional Lumber Manufacturers’ Asso- ciation. New business was above the average of previous weeks. Jof bonds at 2.302 The huge refunding operation of the Treasury, in which it is retiring the called Fourth Liberty 4!y per cent bonds, with a 20-25-year issue at 27g per cent, the lowest rate on long-term Government paper in half a century, has not been appreciably affected by the events of the week. The new loan was quoted at a sub- stantial premium when first an- nounced, for it offered a better return than outstanding maturities. New York State also established this week a new low record cost for borrowing, when it sold $45,000.000 per cent. These were subsequently offered for public subscription at one-fourth of 1 per cent for the one-year portion and at 215 per cent for bonds running from 1961 to 1985. The Federal intermediate credit banks have just placed $20. 000,000 three and six-month debene tures at 1'2 per cent, a rate comp: ing with 215 per cent a year ago, and the Federal Home Loan Banks have reduced their interest charge from 4 per cent to 312 per cent. The ability of the Federal Govern- ment, States and municipalities to borrow at constantly improving levels obviously encourages the habit of spending. So long, however, as private capital is unwilling to venture into 103,216,000 pounds. The new quota is 23.5 per cent less than actual im- ports from foreign countries during the corresponding two months of 1934. The United States’ quota is 8.1 per cent. That gives this country ap- proximately 8,360,000 pounds, com- pared with 10,215,000 pounds actually exported during May and June last year. For the last two seasons actual im- ports of apples and pears into France from the United States have exceeded the quota allotments. This tendency prevailed in the first quarter of the 1934-35 season, when actua} imports were more than three times the size of the quota allotment. It seems probable, in view of the short supplies of dessert apples and ars in Europe, that the United such fruit in France during the last exceed | quarter of the spason. tes again will find a good outlet for | gwarq the market for corporation securities and will not freely negotiate com- mercial loans or loans on real estate, the volume of excess bank reserves will increase and credit inflation will proceed. While there appears to- be less prospect of currency inflation than a year ago—in other words, the em- ployment of “printing press” money to encourage recovery—the bank re- serves now backing up in the banks, and enlarged with each new issue of Government bonds, must soon begin to spill over the dam. It is encouraging to read that the head of the Federal Housing Adminis~ tration expects “an amazing rise in the number of new homes being erected” in the next few weeks, even though this prediction has been re- current since last November. Some figures have just been compiled by the National Industrial Recovery Board showing the need of building con- struction if business is to move for~ (Copyright o Slacorth American Newspadll. Alliance, Inc.)