Evening Star Newspaper, March 17, 1935, Page 63

4 boulaye, News of Markets Pages 1 to 4 Part 5—12 Pages SIDDON APPOINTS BANKERS 10 PUSH ANNUAL CONCLAVE Preston Is Vice Chairman of Committee in Charge of 1935 Convention. OTHER BANK LEADERS ARE INCLUDED IN LIST Capital Traction Bonds Sell at New Peak Price on Wash- ington Exchange. BY EDWARD C. STONE. Frederick P. H. Siddons, president of the District Bankers’ Association, and secretary of the American Security & Trust Co., announced the appoint- | ment yesterday of 22 officers in Wash- | ington banks to serve on the General | Convention Committee for the 1935 | eathering to be held at Hot Springs, Va., May 30 to June 2. President Siddons recently ap- | pointed Hilleary G. Hoskinson, vice | president of the Riggs National Bank, | general convention chairman, and Ord | Preston, president of the Union Trust Co., has now been selected as vice | ehairman. The other members of the | committee, named yesterday, include: Corcoran Thom. president, American Becurity & Trust Co.: J. Frank Camp- bell, president. Anacostia Bank: Maur- ice D. Rosenberg, president. Bank of Commerce & Savings: C. F. Burton, president, the City Bank: Frank J. Btryker, president, Columbia National; B. W. Earnshaw, treasurer, East Wash- ington Savings Bank: E. C. Graham, president, Hamilton National; W. W. Spaid, partner, W. B. Hibbs & Co.: Rolfe E. Bolling, president, Liberty National: Floyd E. Davis. president, Lincoln National: Lanier P. McLach- | len, president, McLachlen Banking Corp.: Bertram Chesterman, presi- dent, Morris Plan Bank; C. H. Pope, vice president, Munsey Trust Co.; | George L. Starkey, president, National | Bank of Washington; Henry H. Mec- | Kee, president, National Capital Bank; George W. White, president, | National Metropolitan; H. Prescott | Gatley, president, National Savings & Trust Co.; Robert V. Fleming, presi- | dent, Riggs National; Victor B. Deyber, | president, Second National; Francis G. Addison, jr.. president, Security Savings & Commercial. and Harry G. Meem, president, Washington Loan & ‘Trust Co. Ord Preston, the vice chairman, has | been president of the Union Trust | Co. for several years, having suc-| ceeded the late Edward J. Stellwagen, | one of the founders of the bank. Before becoming head of the insti- tution Mr. Preston had rendered long service on the Executive Committee. He has been a regular attendant at the annual conventions of the Dis- trict Bankers' Association since ac- tively entering the banking field. To many people he is particularly well known as a former president of the | ‘Washington Gas Light Co. President Siddons said yesterda: that the committee handling the pro. gram. transportation, hotel accom- | modations, sports and other enter- tainment will be announced shortly. Traction Bonds at New Peak. Capital Traction 55 sold at the | highest figure on the Washington | Stock Exchange yesterday that they | have reached in several years, 97':. They had changed hands earlier in| the week at a new high of 97. Yester- | day the bonds advanced half a point and recorded three $1,000 transfers | at the new level, making a gain of 713 points during the piesent year. H ‘Washington Railway & Electric preferred stock was in lively demand yesterday at 103%. In seven consecu- tive sales of 10-share lots the stock maintained its recent advance; also standing at the best quotations so far 1935. { Lanston Monotype stock appeared on the board, 10 shares changing | ownership at 50, same as other recent transactions. Mergenthaler Linotype stock was also in the trading zone, two 10-share lots moving at 30, the price | which has obtained for some weeks. | The week’s business closed with Washington Gus Light 6s, Series B, eelling at 10335, price unchanged and mt the 1935 peak. During the week Capital Transit stock moved against the upward trend in other issues. The stock closed with 22 bid and 23!, asked. ‘The stock has sold as high as 2615 this year, the last sale being made at 23. Washington Gas Light 5s, 1960, pro- Vided a thrill on the Exchange during the week by selling at 11514 for the first time since they were listed. Financial District Comment. Brokers in local New York Stock Exchange houses yesterday expressed great interest in the latest move of the Becurities Exchange Commission to push along efforts to establish rules and regulations for over-the-counter trading. There has been a great deal of discussion on this point. In Hartford, Conn., most of the past amount of trading in insurance stocks is being done over the counter, with- out regulation. In Buffalo the Ex- change has suffered a severe falling off in trading, the same situation pre- vailing in other places. The ex- changes declare that all trading should be on an even basis and that there should be no advantages in the sale of securities off the exchanges to the detriment of the organizations which are complying with the Com- misison’s regulations. Gov. Eccles of the Federal Reserve Board says that the banks receive $320,000,000 in interest on Government obligations and a billion, as has been claimed by some critics. He terms this interest a subsidy to the banks ‘which is necessary to keep them alive in the “present loanless period,” and to repay them for their services as depositories and clearing houses. Edward E. Fisher of the foreign department of the Riggs National Bank was receiving congratulations yesterday for a high honor conferred by the government of France in his selection as an Office d’Academie in recognition of his services in the in- terest of France. Natice of the honor was conveyed to Mr. Fisher by the French Ambassador, Andre de kfl- Plan Convention Memb s of the District Bunkers® Associati"n who have been appoint- ed to head the 1935 General Con- vention (‘ommittee are Hilleary G. Hoskinson (upper), vice president of the Riggs National Bank, ~hair- man, and Ord Preston (lower), president of the Union Trust Co., vice prisident. The comunittee was combleted yesterday. RETAILERS EXPECT SALES RUSH WITH MILDER WEATHER : Favorable Conditions in the South and Southwest Al- ready Spurs Trade. Special Dispatch to The Star. NEW YORK, March 16.—Arrival of | a wave of mild Spring westher is all that is needed to send & flurry of Easter shopping through th~ retail | stores of the country, the National Retail Dre Goods Association con- luded in & survey of the pre-Easter trades outiook today. Many areas in the South and South- west, where balmy weather has been | | prevalent curing the last few weeks, have already experienced a heavy consumer cemand for Spring mer- chandise. With the Easter season approaching its peak within the next few weeks generally favorable weather will lift retail buying to a high pitch of activity in all sections, the association reported. Store mecrchandise stocks, although generally somewhat lower than a year ago, are more than ample to meet the first ouslaughts of an intensi- fied buying wave, the report declared. But with the first evidences of heavy customer demand many stores will enter the markets with hew orders and reorders for Spring goods, re- stimulating the business of manu- ployment in their mills. Because of the late arrival of Easter this year on April 21, as against April 1 in 1934, March retail sales can be expected to do little more | than equal those in the same month last year. With the 1935 Easter peak arriving in April, however, retail sales for that month should be proportionately higher next month than in April, 1934. Merchanis generally agree that the buying movement for the season will reach its crest dusing the week of April 8, according to the associa- tion, and sales increases during that month over April last year may run in many cases as high as 25 per cent to 30 per cent. ‘The general sentiment among re- tailers is that February, March and April sales throughout the country will show at least an 8 per cent in- crease In comparison to the same months of 1934. FINANCIAL AND CLASSIFIED WASHINGTON, D. C, MARKETS FORESEE GOLD BLOC MOVE FOR DEVALUATION iProspect Unsettles Prices. Slight U. S. Effect Likely After Decision. IACTION WOULD SPEED |, WORLD STABILIZATION I ‘lose Scrutiny of Belgian Unit| Brings Selling—Conference To- morrow Awaited. H SUNDAY FINANCING TO CUT TAXEXENPT LIST, DEMAND SPURRED State and Municipal Issues Lifted—Large Federal Savings Foreseen. CORPORATE REFUNDING HELD CHEERFUL SIGN Desire to Cut Interest and Take Advantage of Market Trend Dominates Action. BY J. G. DONLEY. BY THOMAS E. FLANAGAN, Associated Press Financial Writer. } NEW YORK, March 16.—Wall Street | Iorflgn exchange circles are leaning very strongly to the belief that the $old bloc is getting ready to devalue. How much they may devalue, and when, is said to be anybody’s guess.| Until definite action is taken, most observers chink the prospect will be an unsettling factor, but once devalua- | tion is out of the way. a number think | the last serious obstacle to stabiliza-- tion of world currencies will be found to have been removed. So far as the effect upon the United States is concerned, most foreign ex- change oxperts say it will be slight. It is the sterling bloc of currencies whose fluctuations seem to affect American price levels. While the lower dollar chould in theory have helped American exports o gold bloc countries, the fact has been that the gold bloc has mostly been surrounded by high tarifl walls and import quotas. Leaders to Confer. The Belgian currency is being | watched for signs of cracking, and the | here fact that it was under scrutiny | "Yas enough to bring considerable sell- ing of that currency in New York and London. The fact that Belgian and Krench authorities are going nto a Huddle over the moretary situation on Monday has been enough to arouse {resh doubts over the Belgian situa- don. Belgian industry has been severely depressed by the deflationary | effects of the declining pound and dollar. The recent trade pact with | the United States may help, but is thought to have come too late to make the position of the belga secure. | Wall Street international financial | “uarters say a number of gold bloc | :mancial authorities express the opin- {sn that devaluation of their cur- _ncies is almost inevitable, but that it Ims been politically dangerous even to «&ggest it publicly, because of the Yusses suffered by the thrifty French #ld Belgian people as a result of the pbst-war devaluation, and the pride ¥ the Swiss and Du‘ch over the #Yility to maintain their pre-war Jurities, 1 ;Furthermore, all of these peoples vere close to the terrific German in- | £ation which wiped out the savings of | the middle class ana caused frightful saffering. i | ‘Nothing like the post-war inflations is threatened now. Some think a 20 per cent devaluation would do the trick. But public sentiment is such that the ground must be thoroughly pre- | pared before 't would be possible for | any French government, for instance, | to devalue and stand i British Pound Is Strong. Selling of the belga prompted by tue fear that Belgium may devalue | 1er currency featured foreign ex- | change markeis today. Weakness in this and other gold bloc currencies contrasted with strength in sterling. The gold currencies were at the level where gold shipments to the United States would have to be made in order to protect rates against fur- | ther declines. In New York the belga weakened 1.16 of a cent to 23.16 cents. In London the dollar was a little soft, and in later transactions in New York the pound was 1 cent higher at $4.80%. In Paris the dollar strengthened at an equivalent of 6.526 cents to the franc, and in New York francs showed the same degree of easiness at 6.59 | cents, off .0033 of a cent. At the closing rate for francs the | facturers and serving to benefit em- dollar was at a premium of 66-100 of | 1 per cent, compared with a premium | of 60-100 of 1 per cent Friday and a | premium of 53-100 of 1 per cent a | month ago. | —_— 'HIGH LEVELS ARE HELD BY RESERVE BALANCES By the Associated Press. Reserve balances of member banks of the Federal Reserve System remain near the recent peak. The weekly re- port of the Reserve System shows a gain of $33,000,000 in members’ re- serves. The sharp new year upturn was checked recently by a seasonal expansion in circulation and a slowing down of gold imports. Comparative figures on total re- serves, as reported by the Federal Reserve Banks, follow: Week ended March 13 Preceding week. . . Same week last yeal 588.000.000 000,000 100,000 Special Dispatch to The Star. NEW YORK, March 16.—The Gov- ernment's fiscal program has turned preponderantly to conversion, with a two-edged purpose—to get rid of old “gold clause” obligations and make important savings in interest charges. The program made a big step for- ward this week in the calling for redemption of all the first Liberty bonds, holders being offered the priv- ilege of exchanging for other obliga- tions. An effect of this wholesale retire- ment. perhaps not entirely unforeseen, was to create a broadening demand for municipal and State bonds. This demand grows out of their tax-ex- emption features. The approximately $1,400,000,000 of first Liberty 3'as was the only group of outstanding Federal obligations entirely tax ex- empt, the various 4s and 4!;s into which a portion of the earlier issue had been converted being exempt only from surtaxes. That tax distinction, of course, explains why something less than one-third of the original 315s took advantage of previous con- version offers, which held out the bait of a higher interest rate. Reflecting the serious gap to be left in the supply of tax-exempt bonds, the demand for New York State bonds, issued last week on a 21: per cent basis, was so strong im- mediately after the Treasury’s an- nouncement that they were bid for on a basis of 2.25 per cent, with the best offer 2.10 per cent. Corporate Refunding Operations. Corporations, it is to be noted, have in the last week begun to enter the capital market in pursuance of re- funding plans which are patterned after those of the Federal Govern- | ment. The purpose is one and the | same—to accomplish a saving in in- terest charges by taking advantage of the prevailing demand for mortgage investments which has resulted in a low-yield basis. Corporation plans have been facilitated by the new reg- istration forms, which, while they have not removed the liabilities and moral restraints upon the issuer im- posed by the securities act of 1933, have brushed aside many of the most annoying technical obstacles. Encour- agement has also been found in the | willingness of Chairman Kennedy of the 8. E. C. to co-operate in every pos- sible way. | The result is that $88.000,000 of | corporate refunding in two issues is | now under way, and Commissioner | Landis has announced that two other ;large corporations are preparing to | register new bond issues which will amount to $50,000,000 each. This will bring the total of capital issues in sight for the week up to $188.- 000,000. The extent of the sudden expansion of such operations will be appreciated when comparison is made with the total of corporate financing for the months of January and Feb- | ruary combined, estimated by the Financial Chronical at $37.517,000. Estimates are that, if all corpora- tions having callable bonds now sell- ing at premiums were to take ad- vantage of the existing opportunity to reduce their fixed charges, the re- sult would be some $800.000,000 in re- financing. Such operations would not glut the securities market, for they would not represent the raising of any new money—merely an exchange by | investors of old securities for new. New Financing Expected. The most encouraging feature of these corporate refunding operations is that experience of the past has | always been that refinancing usually | precedes and prepares the way for new fln;nclmz which implies putting rew capital to work in improvements and expansion. Announcement by the Treasury that some $600,000,000 of the “gold profit"—all that remains unexpended —would be used to retire circulation- privilege bonds, did not come as a great surprise. First publicity to such a plan was given last August. At that time, it also was first-page news, and the same discussion ensued, then as now, in relation to the pros and cons of its inflationary implica- tions. The immediate effect of the move merely is to retire the rela- tively small amount of national bank notes now in circulation, to close the jdoor to all such issues in future (Continued on Third Page) Corporate Financing Remains at Low Levels As Government Agencies Take Over Burden Special Dispatch to The Star. EW YORK, March 16.—Do- mestic corporate underwrit- ings during the year 1934 were only 7.2 per cent of the 1927-29 average, while the epproximate value of security trading on the New York Stock Exchange in the same year was but 13.2 per cent of the 1927-29 average, according to a compilation made by the invest- ment management department ot Calvin Bullock. Curtailment of se- curity trading was even more marked for the first two months of 1935 with the volume estimated at but 8.8 per cent of the 1927-29 average. Contrasting this state of financial affairs with that in other countries, the study continues: “It has been a commonly observed phenomenon following past major cyclical depressions that new corpo- rate financing has always expanded rapidly close on the heels of geperal business recovery. been the recent experience of both England and Canada since the de- pression lows of 1932. Clearly it has not been the experience of the United States. Our total domestic corporate underwritings in 1934 were actually 27 per cent below the 1932 volume.” Investigating the contraction in short-term private credit subsequent to 1932 the survey reveals that it also Las undergone severe deflation when measured in terms of total loans of the reporting member banks alone. Such loans reached a level of approx- imately $15,000,000,000 in 1927, de- | clined to $10,200,000,000 at the end $8,100,000,000 in .February, 1935. “The declining trend of private long- term capital financing has been met by a rapidly rising trend in new Government financing. A substan- tial proportion of the proceeds of huge public borrowings in recent years is being passed on to pri: ‘business has 'in. the form of int te long- | of 1932, and stood at a new low of | term credits through several govern- mental lending agencies, thus directly displacing in part the need for pri- vate credit. “Naturally the question here arises— what of the future? Are the old channels of long-term capital financ- ing to be permanently diverted, even ic part? This is not an idle query, when due consideration is given to the extreme stagnation existing today in all forms of private credit. both long and short term. Undoubtedly the Government has made many hon- est attempts to stimulate the expan- sion of private credit, largely in order to extricate itself from the con- tinued necessity of supplying all the capital needs of private industry, manifestly an impossible task. On the other hand, any spontaneous ex- pansion in private credit seems con- stantly to be thwarted by offsetting experimental legislation disturbing to private enterprise. At present, there- {fore, & complete imm. MORNIN he Sunday Star NG, MARCH 17, 1935. WHAT A CREW! Classified Ads Pages 5 to 12 ~ ,,y @) CHEMICAL FIRMS LEAD IN RESEARCH Industry to Celebrate 300th Anniversary of Founding | April 22 to 26. Spectal Dispatch to The Star. NEW YORK, March 1f —Studies made public by the Tercentenary Committee of the Chemical Industries show that in expenditures for re- search the chemical companies lead | all groups in American industry. | “The chemical industry, in addition to its own achievements, bas become stimulator and scientific pacemaker ' for American industry as a whole,” declares the committee in 2nnouncing a national symposium to be held during the celebration in New York, April 22 to 26, under the auspices of | the American Chemical Society of the 300th anniversary of the founding of this industry in America. Pointing out that gas welding has | introduced revolutionary changes in the steel fabricating industry, the re- port, predicting continued progress, asserts that “the chemical industr stands ready to make synthetic pe- troleum from coal whenever the nat- ural supplies have become exhausted.” Of the total of 1575 research laboratories in the United States, the great majority are attached to com- panies in the chemical and chemical “process” industries, according to the report, prepared by Dr. Theodore M. Switz, consulting engineer of New York City. The average research | budget for 40 or 50 leading companies | is slightly less than $200.000 per year. | Several medium - sized companies | spend as much as $400,000 or $500,000 | each year. “The leader in the field is un- doubtedly du Pont, which in 1933 spent a total of $5.800000 on re- search, of which $1,800,000 was for the control of quality and yields of | existing products and $4,000,000 was | for the development of new products | and processes. The practical effect’ of this unusual attention to research| has been that the chemical industry has been very profitable and well able to weather the storms of the de- pression.” AUTO CLUB REPORTS GAINS IN INSURANCE Keystone Concerns Pay More| Than $5,419,000 in Claims in 1934—Assets $3,119,000. ‘The Keystone Automobile Club Cas- ualty Co. had an outstandingly suc- cessful year in 1934 and the company now is in the strongest financial posi- tion in its history, it is reported by officials on the basis of the annual statement of condition to the vari- ous insurance ers. Assets of the company, an analysis of the statement shows, total more than $3,119,000. Liabilities include a reserve of $1,188,254 for public liabil- ity losses; $758,033 for unearned pre- miums; $200,000 for asset fluctuations: and more than $400,000 as a contin- gent reserve. Claims paid for policyholders last year through the Keystone Automobile Club Casualty Co. and the Keystone Automobile Club Fire Co. totaled more than $5,419,000. The combined surplus to policyholders was more than $1,- 466,000. I GLASS RATE MAINTAINED. NEW YORK, March 16 (#)—Pro- duction averages in the glass indus- try for the closing first quarter com- pare favorably with figures for the same period last year, according to the American Glass Réview, | o e | Commodities Sag SHARP BREAK IN COTTON SENDS MARKETS DOWN. | | NEW YORK, March 16 (#) .— Precipitated by a sharp break in cotton, the commodity market was generally lower this week. The Friday close follows: Wheat (No. | 2 red, N. Y.), 10834, off 31:; cot- | ton (middling N. Y.), 11.50, off 95 | points, and hogs (top, Chicago), | $9.40, off 35c. —Copyright, A. P. Wirephoto. CANADIAN STOCKS | LAG BEHIND TRADE Lose “Gold Clause Advances” and | Drop Below Marks of Last December. Special Dispatch to The Star. TORONTO, Ontario, March 16—/ While Canadian corporation reports | reflected improvement in industry and | trade and general business conditions | are satisfactory, the stock markets continue dull and heavy. All the apgeciation in stock prices that followed the gold clause decisions in the United States has now been eliminated. The average of 20 indus- trial shares has fallen below the 100 mark for the first time since Decem- | ber 14 last. | Interlisted stocks on the Canadian | markets followed the New York trend this week. A few domestic issues showed sharp losses at various times | for no apparent reason, indicating that the markets are thin, so that a very little selling upsets prices. In the last month, mining stocks | have turned upward on a broad front | on several occasions, but the advance | has been checked swiftly and most of the gains eliminated. (Copyright. 192 by North American | per Alliance. Inc.) FINANCE REPORTS TOPI OF FORUN D. C. Accountants Will Hear | Experts Explain Mod- ern Methods. An open forum on the subject “Modernization of Financial State- ments” will be the feature of the meet- ing in Washington of the National Association of Cost Accountants, next Wednesday evening at the Carlton. Dr. William M. Deviny, professor of accounting at the Catholic University of America will lead the discussion and William H. Churchill, controller of Peoples Drug Stores, and president of the chapter will preside. During the past few years, as a re- sut of the decline in earnings, divi- dends and prices of securities of cor- porations, the investing public has taken a more critical attitude toward published financial statements. Cor- porations and their accountants have been attacked for issuing unduly opti- mistic and sometimes misleading statements. Among the more important of the objections raised which will be d:s- cussed by Dr. Deviny and the mem- bers of the chapter will be: Over- condensation of statements, especially of the earnings statement and the surplus division of the balance sheet; inflation of profits by inclusion of items which do not properly belong in current operating profits: charging items to surplus which would unfa- vorably affect current operations if included among expenses, and failure to disclose changes in accounting policies which prevent a fair com- parison of two consecutive year's operations. Accountants and students of ac- counting are invited to attend and participate in the discussions. WOOL TRADING ACTIVE AT BOSTON IN WEEK By the Associated Press. BOSTON. March 16 (United States Department of Agriculture) —Greasy combing domestic wool was quite ac- tive during the last week with some slackening in demand noted toward e end. Average 12 months Texas wool moved at 60-63 cents scoured basis. Strictly combing staple of most grades of Ohio and similar fleeces moved in moderate volume at 26-27 cents in the grease for 64s and finer, at 27-271; cents for 58s, 60s, 13 blood, at 26-27 cents for 56s, 35 blood. at 231,-24 for 48s, 50s, !4 blood. and at 21-22 cents for 46s, low !4 blood. Imports of Foreign Butter Pass 7,000,000-Pound Mark BY FRANKLIN MULLIN, Assoclated Press Staff Writer. HICAGO, March 16.—The United States has imported more than 7,000,000 pounds of foreign butter since Janu- ary 1, almost seven times total imports of this commodity dur- ing all of 1934. Butter produced in eight countries has been shipped to New York, boost- ed over the 14 cents per pound tariff wall, tad apparently marketed at profit to shippers. | While foreign butter 1mpomtions“ have clouded the domestic market for | this important farm commodity, the | fact that this large an amount has| been put into consumption in compe- | tition with American butter is con- | sidered in produce circles as not as important as it appears. Traders today pointed out that there is & genuine need for butter to supply the domestic demanq that continues fair despite high pr Domestic pro- duction simply has been too short for the demand. Most authorities assert the market now hinges mainly on a question of consumption at the present price level, in connection with which competition with substitutes, particularly oleomar- garine, is an important factor. Not to be lost sight of, however, is the fact that domestic cold storage stocks March 1 were the smallest, with the exception of 1927, on record, totaling only about 8,000,000 pounds. Production has shown no signs of increasing materially, the make in the near northwest last week being esti- matcd 18 per cent less than last year and only 0.9 per cent above the pre- vious week. Merchantile authorities estimated 7,112,000 pounds of butter has been imported sacé the first of the year mostly from New Zealand, with scat- tered shipments from Argentina, Siberia, Latvia, Luthania, Sweden, Denmark and Australia. More is en route, it was indicated. with the pres- ent price statllp favorable. TRADE IS CHEERFUL DESPITE DROP OF SOMEBAROMETERS Steel Rate and Loadings Down—Break in Cotton Is Blow to Textiles. AUTO OUTPUT EXTENDS RISE TO 97,090 UNITS Pick-up in Retail Activity Pushes General Business Ahead as Easter Approaches. BY RADER WINGET, Associated Press Financial Writer. Although many major barometers of the Nation's business fell last week, signs appeared that the ex- pected Spring upturn was spreading its broad blanket of revived activity. About half of the reports from 13 Federal Reserve districts indicated & steady rise in general retail buying and other consumer demand outlets, and some reports on anticipated sales of Spring merchandise were decidely enthusiastic. Among the basic indicators of the trend of business, automobile produc- tion was stepped up last week to 97,900 units from 86,973 the previous week, as estimated by Cram'’s. Motors have led the recovery van since December with production the first 11 weeks of this year reported by Cram’'s at 45 per cent over the same 1934 period. Steel production fell from 48.2 to 47.1 per cent of capacity, as estimated by the American Iron & Steel In- stitute. and a decline of 2.9 per cent from the previous week was registered by carloadings for the week ended | March 9. A decline was in order, but | not so large. Most Changes Slight. On a broad scale, however, the | changes over the country were slight, with retail trade picking up in antici- pation of Easter in numerous centers to pusl: general business ahead. As an example cf the slight change, | the weekly business activity index | for the Pittsburgh district compiled | by the Bureau of Business Research of the University of Pittsburgh fell from 71.8 to 714 in preliminary esti- mates. | Most serious upset was the sudden break in cotton prices which carried quotations well under the 12-cent mark, a point which hitherto had been considered a peg point because of the Government loans of that amount to producers. A blow was dealt to the cotton textile market which already was weakened by a seasonal production decline. In New York, textile trade | stood still for a time while buyers vainly argued for lower cloth prices. The plan by Donald R. Richberg, executive director of the National Emergency Council, to cut codes from 731 to 181 was received favorably by most analysts, but proposed elimina- tion of price fixing was viewed with concern in some business circles. | ‘Those who held inflation fears were | reassured by the Treasury announce- ment of retirement of national bank | notes from the general gold “profit” fund, and by the call for redemption | of $1,900,000,000 of first Liberty Loan | bonds. Reports by Districts Given. Individual reports from Federal Re- serve district for last week follow: BOSTON.—The cotton market slump frightened most of the few buyers in the New England finished products field, but a few specialized lines, including branded bleached goods, received strong buying support. Shoe production tapered off and bad weather caused concern to retailers. Wool sources reported a fair trade volume. NEW YORK.—General retail trade in the New York metropolitan district was slowed by weather, but buyers ar- riving in the wholesale market were more numerous than the previous week or the same week a year ago. Cotton textile markets stopped on the fu- | tures market break as buyers pressed for lower cloth prices. PHILADELPHIA.—Retail stores in the third district reported a 6 per cent increase in business volume over the previous year. Retailers were reported preparing for the largest Spring sell- ing season in three years, particularly, | in clothes. CLEVELAND.—Youngstown district | steel operations increased, but the (Continued on Fourth Page.) FURTHER D.ECREASE IN LIVE STOCK SEEN Curtailment of Feed Supply to Bring Additional Loss, Accord- ing to Hamilton Institute. Special Dispatch to The Star. NEW YORK, March 16.—Due to the decrease in the feed supply which was caused by the 1933 and 1934 droughts and by the Government's acreage curtailment program, the sup- ply of every species of live stock has declined to the lowest figure in more than 50 years, according to the Busi- ness Conditions Weekly of the Alex- ander Hamilton Institute. Hogs showed the sharpest decrease. The number on January 1 was 35.2 per cent smaller than a year ago and 46.6 per cent below the 1932 peak. “The number of cattle and calves on farms showed a decline of 11.2 per cent during 1934. “It is clearly indicated that the Na- tion. from the standpoint of its live stock capital, which is an important factor in the welfare of the people, not only failed to make progress toward prosperity last year, but moved definitely in the direction of poverty. A continuation of this trend is in prospect for 1935, since the short sup- ply of feed promises a further reduc- tion in the number of live stock. “It is already evident that this Spring's pig crop will be well under the small crop of a year ago, since the number gf sows to farrow show & reduction of Y7 per cent.”