Evening Star Newspaper, January 1, 1937, Page 19

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FINANCIAL. IDLE FUNDS SEEN FACTOR IN MARKET Inflation and Foreign Gold Disregarded as Causes of Price Increases. BY ARTHUR H. NORRIS, Cambridge Associates Staff. The curtain falls on another year of rising security prices. From March of 1935 there has been an unbroken succession of ascending peaks and, after each, there has been expecta- tion of a major reaction. But after & short breathing spell equity prices have continued on their way upward, defying portents and precedent. From mid-December, 1935, through the first quarter of 1936 the averages climbed without interruption. In late April there was short sharp reaction but a quick recovery followed and the march resumed. Very slight pre- election uncertainty was manifested | and after the balloting, stocks| snapped to fresh highs, 30 points above the January 1 level, according to the New York Times index cover- ing 50 stocks. The bull market is now four and a half years old. Common stock vrices are up 360 per cent from their de- pression lows. S. E. C. officials and other financial authorities are giving grave consideration to methods of controling a boom with the implica- tion, of course, that if stock prices are not. already too high they promise s0on to become so. “Habits” of Money Cited. 1t may be valuable, therefore, to at- tempt to probe the secret of the mar- ket’s buoyancy. It appears to this writer that, as such, “inflation,” “foreign gold” and similar explana- tions of common stock values can be disregarded. The real basis of the' situation seems to be something more | even than business recovery, cxperi-| enced and expected. The real clue is given by “money’—man’s creation, perhaps, but motivated according to| arbitrary, obstinate habits of its own. ‘Way back yonder in the closing days of the “New Era,” when the lure of profits enticed millions into bor- rowing money at rates of interest to| get rich without working, the highest grade long-term corporate bonds were selling at prices which afforded a secure interest return at the rate of | 4.7 per cent. At that same time, with business | earnings at the best in the country’s history, the per share earnings of a representative list of common stocks were equivalent to only 3.6 per cent on the market appraisals of those stocks. The dividend yields were even | ‘ less. Money Seeks Action. Basically, money seeks action be- cause the individuals controlling it seek action in greater or less degree. ‘The range of money’s activity is wide. But tirelessly it seeks out the oppor- | tunities to earn more money—to get | a return. Broadly, the sphere ofl money’s action is limited by the pull- | ing power of two sources of return: | (1) Relatively riskless, fixed income, eredit instruments of high-grade bor- rowers. 12) Relatively risky, certificates of participation in the earning power of Individual businesses. Although many “investments” give returns which are really combinations of interest and profit earned, the rela- tive pulling power of these two basic | sources of return is the major con- trolling influence over money's action. | Unerringly, though by sometimes | elow and tortuous paths, money, like water seeking its own level, flows | toward the source of return which 1s most attractive, risks considered. In the accompanying chart an at- tempt has been made to present, at vestment history of the last few years, the comparative attractiveness or earning power of money invested in high-grade, long-term bonds and lead- ing common stocks. As indicated in earlier paragraphs, the investor had the choice in 1929 of accepting 4.7 per cent on the best grade of credit obligations or taking earnings yields of only 3.6 per cent on common stocks in the hope that later earnings, In which he might share, would be at yet higher levels. About that time Andrew Mellon dropped his now famous remark that “bonds are a good investment.” The figures above indicated that he was only too correct. Yield 5.4 Per Cent Return, ‘The last four bars on the chart indi- eate the condition and relationship of bond and equity returns today and during the market rise in common stocks during the last two years. The bulwark behind the remarkably steady and uninterrupted advance in common stock prices since March, 1935, is de-i picted in this chart. In March, 1935, | common stock earnings afforded a return of nearly 5.9 per cent as against only 3.58 per cent for long-term bonds. Obviously there was a sufficient mar- gin between the two to justify an ex- tension of common stock holdings. By February, 1936, the rise in stock prices had sufficiently outstripped common stock earnings to reduce the earnings return to 4.84 per cent. While some selective reduction in common stock holdings was therefore justified, the margin between interest rates and stock earnings yields still seemed to Justify retaining a good position in equities. The reaction in April, plus & continuing rise in earnings, raised the earnings yield in May, 1936, to 5.49 per cent as against 3.35 per cent on high-grade bonds—suggesting the desirability of adding to common stock positions. As this is written, earnings still afford a yield of 5.4 per cent on com- mon stocks as against 3.24 per cent on long-term corporate bonds. The as- sumption, of course, is that present stock prices still rest on a fairly solid foundation of present earning power in relation to cost in the market and high-grade bond yields. It would seem a reasonable conclu- sion that if there is a real “boom” condition extant in the United States today it is more of a boom in high- grade bonds than in business earnings and common -uxk prices. FUR GOODS INDUSTRY SCORES LARGE GAINS By the Associated Press. Products of the fur goods industry, Census Bureau statistics show, were valued at $143,784,000 last year, an in- crease of 78.6 per cent over 1933, the last preceding census year. Striking gains also were listed for wages and employment in the indus- try. At $21,103,000, the former were B3.5 per cent over 1933. Wage earn- | first 11 months of 1936. ers numbered 12,510, or 52.4 per cent over 1933. As measured by the Census Bureau, the industry consists of establish- proteeting ments engaged primarily in the manu- | policyholders in these companies aré' Unemployment among union labor TRANSACTIONS ON N. Y. STOCK EXCHANGE IN 1936 (Continued From Fifteenth Page.) Year's Stocks and dividends ales. in dollars. 24,600 Pet Milk (1) ... . 381,300 Petrol Corp of Am(a0e) 358,600 Pfeiffer Brew (1.20)_ 972,200 Phelps Dodge (a1%) 45,700 Phila Co 6% pf (5) 11,200 Phila Co pf () new _. 27,600 Phila Rap Trans (d) 45,470 Phila Rap Trans pf (4) . 412,700 Phila & Reading C&I__ 424,600 Phillip Morris (3)___ 19,700 Phillips-Jones Corp_ 830 Phillips Jones pf (7) 1,467,900 Phillips Petrolm (a2%2) - 82,600 Phoenix Hosiery. 2,580 Phoenix Hose pf (3 191,700 Pierce Oil pf 741,200 Plerce Petroleum 58,000 Pillsbury Flour (1.60) 1,630 Pirelli Co (a3.13) - 94,500 Pitts Coal._ 31:900 Pitts Coal pf _ 130 Pitts Fort W & Ch (7 400 Pitts Fort W& Cpf (7). 831,600 Pitts Screw & B a52c.. 3,400 Pittsburgh Steel_ 48,030 Pitts Steel pf 30,900 Pitts Term Coal 5,768 Pitts Term Coal Df 446,900 Pitts United Corp 30 Pitts United Corp pf. 49,380 Pitts & West Va 50 Pitts You & A pf (7). 37,700 PittstonCo___ ____ 657,200 Plymouth . 12,800 Pond Creek Poc (2)-. 426,800 Poor & Co B 135,100 Porto Rican Am Tob A. 96,400 Porto-Rican Am Tob B_. 277,800 Postal Tel & Tel pf (d) 361,800 Press SteelCar_________ 00 Press Steel 1st pf (25¢) - 00 Press S C 2d pf a1.04%4 800 Proctor & Gamble (133). 360 Proctor & Gam pf (5) 525,200 Pub Svc of N J (12.40) 44,600 Public Serv N J pf (5)_. 33,200 Public Serv N J pf (6)._. 14,400 Public Serv N J pf (7). 6,700 Public Serv N J pf (8) _ 5,600 Public Serv G&E pf (5)_ 909,200 Pullman Inc (1%)- 3,098,400 Pure Ofl. __ __ 55,000 Pure Oil pf (6) 31,970 Pure Oil pf (8)_ 22,200 Purity Bakeries \Hoc) - 24,800 Quaker State Oil (80c) 9,813,100 Radio Corp____ 241,300 Radio Corp 1st pf (313) 392,700 Radio Corp pf B 2,138,600 Radio-Keith-Orph (d) 22,090 R R Secur 111 Cent. e 175,100 Reybestos Man (11%) - 99,000 Reading Rwy (2) = 18,150 Reading Ry 1st pf (2)_. 16,347 Reading Ry 2d pf (2) 94,800 Real 8ilk Hosiery - 6,920 Real Silk Hos pf zlfl Y2 67,600 Reis (Robt) ... .. _ 18,500 Reis (Robt) 1st pf 115,900 Reliable Stores (a50c) _ 1,339,400 Remington-Rand (160c). 9,000 Rem-Rand pf ww (413) 700 Rensselaer &S (8) - 1,662,600 Reo Motor Ca 3,625,500 Republic Steel_ 67,900 Republic Steel p(, — 122,400 Republic Steel pf (12) 195,700 Revere Copper_ 61,400 Revere Copper A _ 180 Revere Cop&Br pf(5%)- Revere Copper pf a3l - Reynolds Metals (1) Reynolds Met cv pf(5%) Reynolds Spring (1) . _ Reynolds Tobacco (3) Reynolds Tobacco B (3) Rhine West EP____ Ritter Dental Mfg (1) . 47,500 Roan Ante Corp (11.12) Hllh l@v Last. lfi% 194 5% THE EVENING 24 : 520,700 Safeway Stores (12) 1,460 Safeway Strs Inc 5% pf_ 6,840 Safeway Stores pf (6) 8,050 Safeway Stores pf (7). 603,800 St Joseph ead (al) ._ . an Francisco (d) . an Fran pf (d) St L Southw’n (d) . St L Southw’n pt (d) Savase Arms (al) Schenley Distill (13) _ Schenley Dis pf (5%2) Schulte Retail Stores _ 2 Schulte Retail Strs pt__. Scott Paper (12) . .. Seaboard Air Line (d).._ Seaboard A L pf (d) Seaboard Oil (1) - Seagrave Corp__ Sears-Roebuck (12) Sears R & Co rts Jan 15_ Second Natl Invest Second Nat Inv pf $4.65_ Servel Corp (11) Sharon Steel Hoop 11.20 Sharon Steel H pf (5)___ Sharp & Dohme Sharp & Dohme pf (315) Shattuck (F G ) (t50¢) . Sheaffer Pen (2) . ___ Shell Union Oil (a25c) Shell Union Oil pf (5%3). Silver King CM (60c) Simmons Co Simms Petroleum Skelly Oil = Skelly Ofl pf (6)__ Sloss Sheffield Steel Sloss Sheflizeld S pf (7). Smith (A 0) Corp'n_ Snider Packing Socony Vac Ofl (a70¢)_ Solvay Am pf (5% ) So Am Gold & P (a30c) - So Porto Rico Sug (12) - So Porto Rico Sug pf(8) South Cal Edison (1%) Southern Pacific Southern Railway Southern Railway pf South’n R M&O ctfs (4) - Spalding (A G) - - Spalding (A G) 1st pf_ Spang-Chal&Co pf(316) Sparks Withington._ .. Spear & Co (a50c) Spear & Copf (5%) - spencer Kellogg (1.60) _. Sperry V& C (al) = Spicer Mfg (a3) Spicer Mfg pf (3) Spiegel-May Stern (5) . 17% 11% 239,500 St L- 388,600 St I 9,890 1,600 157,600 1,033,300 2,458,300 1.466,100 1,287,800 12,300 81,600 12,100 5.740 1,094,800 145,300 750 42,800 2,419,300 197,200 16,590 260,500 +1 |+*+'}++<I+I+ e 110,100 2, ”62 000 2,012,300 & 3,106,900 55, STAR, Stocks and aividends in dollars. 000 Ruberotd Co (11) . 36.500 Rutland RR pf_ 10 6,900 Spiegel A Square D Co (B) (al%) Stand Brands (180¢) Stand Brands pf (7). _ Stand Com Tobacco _ Stand Gas & Elec (d) Stand G & E $4 pf (d) Stand G & K $6 pf (d) Stand G & E $7 pf (d) Stand Invest Corp Stand Oil of Calif HXL, Stand Oil of Ind (1) - Stand Ofl of Kans (al) Stand Oflof N J (¥1)___. Starrett ( §) (11.40) Sterling Products (3.80) Net Low. Last. chge. 4% 119 <19 % 8 + % 27 42% + 9% 96 98% 108 110 +1 110% 111% + % 22 4% +24 3 + 1% 6% + 4% 13% + 5% 28% +10% 15+ 1% 43% — 8% 94y High. - 119 49% 29 114 114% 50% 3% 6% -1% 17% + 1% 8 +1 3 3 8% + 6% 43 + 7 T + 3% 83% +17% 1% 4% + 1 891 +22% 28% +11% 30% + T 8 108 4% 10% + 5% 6214 +19% 16% + 5 41% + % 28% +12% 102% — 6% 14 + 2% 45% +25% 3% 4% 533 1144 - 109% 43% 18% 129 13% 97 2T a2 Spf(6%) Studebaker Corp_ Sun 01l (11) un Oil pf (6) Superheater (a%c) Superior Ol Superior Steel - utherland Paper 11.60 eets Co of America wift & Co (71.20) 4 T5% 4 “!,- Swift Int] Ltd (2) ' Symington Gould ww “0‘- 1915 SECURITY ACT HELD AID TO' INSURANCE [New Groups Expected to| Become Acquainted With Annuity Benefits. (By Cambridge Associates.) With the advent of the new year | & new competitor enters the insurance several important points in the in- | field—a competitor with resources be- yond estimate, with an agent wherever & post office dots the United States, and with the express power to compel the great majority of wage earners to sign on his dotted line. And yet insurance underwriters generally are prone to regard the entrance of Uncle Sam into the business of furnishing protection as more likely to add to the number of insurance holders in private companies than to subtract | | from them. Certainly the approach of the date set for exaction of social security con- tributions from employes brought no indication that the sphere of the pri- vate insurance company is to be cur- tailed, New life insurance amounting to $7,133,159,000 was written in the The same 1935 period, for special and non- recurring reasons, showed new in- surance totaling $7,341,224,000, only 2.83 per cent move. Increase Is Envisioned. Just as the Federal theater projects have benefitted the commercial theater by bringing to a new public the de- lights of the legitimate stage, the social security act is expected to give a vast new group of people a con- ception of the possibilities of in- surance. Insurance men generally envision a steady, well-defined in- crease of interest in insurance gen- erally and in old-age annuities in par- ticular, since to many, especially in the middle income classes, the scale of weekly benefits under theé social se- curity act appear so inadequate. A significant trend worth noting is the growing tendency for individuals to purchase life insurance for special purposes. This broadening of the usefulness of insurance has come about, in part at least, because of higher estite and inheritance taxes. Through insurance it is possible for individuals to make sure that suf- ficient cash will be available to meet the immediate charges against their estates and so avoid losses that might otherwise be incurred through s forced sale of assets. Tax Advantage Is Faclor. Another factor impelling an increase in the amount of insurance carried by the well-to-do is the tax advantage gained in certain instances by the life insurance estate. Insurance planned to take care of educational expenses or to provide a business footing for & son or daughter at a certain age has, of course, been common for many years, but, under the stimulous of the uncertainties of the recent past demand for insurance for this purpos¢ has been substan- tially stronger. The strength of the private life in- surance companies today is strikingly revealed in a recent survey of the in- vestments of 49 companies holding 92 per cent of the total assets of all legal resérve life insirance companies in the Nation. Over one-hilf the assets of these companies are invested in Government and corporata bonds, approximately one-fifth in real estate mortgages and the rest in real estate, policy loans ahd miscellaneous asséts. Altogether holdings the |Research Brmgs Big Harvest for | Machinery Trade By the Associated Press. MILWAUKEE, January —“In: | telligent planning plus a murngenus attack has brought reward to the | durable goods industry in 1936.” de- | clares Otto H. Falk, chairman of the board of Allis Chalmers Manufactur- | ing Co. “Plans for recovery were laid at the time when business was at low- est ebb and the far-seeing manufac- turer sent his engineering staff in search of something new to build with which to force retirement of ob- | solete machinery., The reward is here and from where I sit nothing short of a national calamity or severe la- bor unrest can cause recession of the present brisk demand for durable goods. “With the mills and factories of this industry humming along in high | carried | gear, other industries are with it and so unwinds the spiral.” 'LARGE GAIN SEEN IN FARM EQUIPMENT| In Spite of Setback, Volume for 1936 Should Bé 30 Per Cent Over 1935. (By Cambridge Associates.) (T Iokieien Tow:l &t mliyear by tie | ourpose of positive control of the supply recurrence of drought conditions, sales of agricultural equipment will not come up to previous expectations. Nevertheless, it is felt that the total volume for 1936 will be reported at least 30 per cent in excess of 1935. Government orders for use by the C. C. C. and exports were no little factor in the improvement. In the most recent prosperity year, 1929, total farm equipment sales were approximately $600,000,000. Fifty per cent of this volume was concentrated in tractors and harvesting machinery. Expressed in relation to net income available for operators’ labor, capital and management, this figure was about 10 per cent. It is estimated that a similar percentage held for 1936, with net income approximately $4,000,000,000 and gross expenditures for agricultural equipment in the neighborhood of $400,000,000. Prices should continue at good levels and the farmer may be expected to exannd his purchases at a satisfactory zate. FOREIGN TOMATO PASTE MAY BE DISPLACED £recial Dispatch to The Star. NEW YORK, January 1.—The United States consumes about $5,000,~ 000 worth of tomato paste annually, and all of it (12,000,000 pounds) has been com! from Italy, where the special pear-shaped tomato used for the paste is grown. Now in Califor- nia production of these tomatoes is rapidly approaching a point where the entire United States demand can be supplied, acccrding to Business Week. — iy ADVANCE REGISTERED BY CEMENT INDUSTRY By the Assoclated Press. Products of the cement manufac- turing Industry last year were valued at $120417,000 Census Bureau sta- tistics lhaw. &n increase of 38.5 per cent over 3. Wages totaled $20,- 903,000, lrheotso’l per cent and wage-earners numbered 20,696, an in- cfease of 30.7 per cent. facture of fur garments, robes and |valued at approximately $23,000,- members in New South Wiles is now goods. similar ‘ 000,000. less than 10 per cent. A | MacMillan report, just before WASHINGTON, . C, FRIDAY, Btocks and dividends in Golars. 200 Symington Go 97,200 Telautograph (60c) .. 866,100 Tennessee Corp (albe) . 13 76,100 Texas & Pacific RR..__. 49 1,862,900 Texas Corp (1) . __ 417,600 Texas Gulf Prod (lBDI‘) 643,500 Texas Gulf Sulphur(12). 1,363,200 Tex Pac Coal & O a25c__. 844,900 Texas Pacand Trallc . 411 Tex Pac L'd T (old) a10_ 101,500 Thatcher Mfg (1) 4 7.300 Thatcher Mfg pf (3.60)_. 57,100 The Fair__ __ 2,850 The Fair pt (7)A 506,100 Thermoid Co _ 128,100 Third Avenue_ 26,900 Third Natl Inva(1.90) 26,800 Thompson (J R) (150¢ 355,300 Thompson Prod (a1)%). 856,900 Thompson Starrett __ 57,900 Thompson Starrett pf 1,236,200 Tide Water Asso (60c 54,600 Tide Water As O pf (6) .. 1,279,600 Timken-Detroit Axle 11_ 440,800 Timken-Roll Bear (12)_. 1,269,500 Transamerica (140c) 481,300 Trancont’l W’'n Afr a25c. 161,500 Tr&W A (a25c)rts Jan 6 184,700 Transue & Willms(160c) 794,600 Tri-Cont'l Corp (ai0c) .. 34,400 Tri-Contl Corp pf (6) . _ 176,400 Truax-Traer Coal(a2ic). 55,900 Truscon Steel ___ 606,900 20th Century F F (a2)__. 336,200 20th Cent Fox F (a2) . 246,700 Twin City Rap Transit_. 23,750 Twin City R T pf (14) 109 229,900 Ulen & Co = 216,200 Und-Ell-Fisher (a2% 248,900 Union Bag & Paper (2) . 869,300 Union Carbon & C 3.20 . 530,500 Union Oil of Calif (1) 189,600 Union Pacific (§) - 57,400 Union Pacific pf (4) 103,900 Union Tank Car (1.20) ._ 2,334,900 United Afreraft (a50c) 1,220,600 1nited Air Lines(a20c) _ 36,000 1nited Am Bosch 163,000 United Biscuit (1.60) 1,430 United siscuit pf (7 136,700 United Carbon (13) _ 44,900 United Carr Fast (12) . 5,256,000 Tinled Corp (az0c) 432,700 United Corp pf (3) 957,900 United Drug (a75c) 191,400 United Dyewood (1) 4,140 United Dyewood pf (7) 318,600 United Electrie Coal 74,400 United Eng & Fy (: 332,800 United Fruit (+3) 1,875,800 United Gas Imp (1) 20,600 United Gas Imp pf ( 106,000 United Paperboard (d)_ 35,500 U S Distributing 51,180 U S Distributing pf 167,300 U S & Forn Securitie 16,200 17 S & For'n 1st pf (6) 153,400 U § Frelght (1) 174,500 U S Gypsum 72 4.770 U S Gypsum pf (7) 287,300 U S Hoftman 19,000 U § Hoffman pf (23 ) 877,600 U S Indus Alcohol (1) __. 151,600 U S Leather vt ____ 349,900 1S Leather vte (3) 31.600 1 S Leath pr pf vie (14) 788,500 U S Pipe & Fdry (1%) 1,022,700 U S Realty & Imp = 2,698,700 U S Rubber _ _ 937,300 U S Rubber 1st pf_ 403,700 S Smelt & Ref (a19) 21,900 17 S Smelt & R'pf (3‘1) 6.198,800 U S Steel Corp ZE% 249,200 17 S Steel Corp pf «7 11,300 U 8§ Tobacco (15) 1,510 U S Tobacco pf (79 970,400 United Stores (A)_ 13,400 United Stra pf $14.81%% 49,600 Univ Leaf Tobacco (13) - 3,400 Univ Leaf Tob pf (8) __ 15.430 Univ Picture 1st pf 100 22 17 1“ 168 102 High. Low. Last 15% 12% 9% LY 8% 4% 15% 14% 1.375 1 000 1054% 284 149% 31% 325 3% 33% 96% 35'% 9% 48% 8% 92 165 115 JANUARY 1, 1937. Net i cnge. | iaten sales 14% 8 u| 12% + 3% 4712 +19 4% 425 192, 60 Vicksbgh 79,900 227,200 2,410 187,900 Walker « 699,600 53,500 168,800 325,400 214,800 230 20,980 296,400 23,900 5,980 12,130 16,110 Western Western Western Wesingh': Wehtinh" Wheel & 263,400 ,395,900 1.217,600 233,600 55,080 87,800 38,670 74,600 937,900 Zenith Radio. 493,400 Zonite Products Dividend rate as | declarations 2 +Annua) rate—not 164% + 7% | 4 paid this year. 101 <49 153 50 Stocks and dividends in dollars. 1,211,300 Utility Pwr & Lt (A) 432,100 Vadsco Sales Corp_ . 7.900 Vadsco Sales Corp pf_. 764, 'IM Vanadium Corp - an Raalte (a3%) 4, 'M) Van Raalte 1st pf (7). 116 53.800 Vick Chemical (12)__ 20 Vicksb'g&Shreve pf(5) .. 598,400 Va-Caro Chemical .. .. 420,800 Va-Caro Chem 6% pf.. 9,550 Va Elec & Pwr pf (6) 17.470 Va Iron Coal & Coke . __ 9,830 Va Iron Coal & Coke pf_. 4,400 Va Railway ot (6) 4,470 Vulcan Detinning (a8) _ 370 Vulcan Detin pt (7)_ _— Wabash RR (d) . Wabash RR pf (A)(d)__ Wabash RR pf (B)(d) _ ‘Waldorf System (11.20)_ Walgreen Co (2) Walgreen Co pf (6%) - Walker (H) pf (1) Walworth Co (d) - Ward Baking A Ward Baking B ‘Ward Baking pf (37) Warner Brothers Warner Brothers pf ?32,700 ‘Warner-Quinlan (d) Warren Bros Warren Bros cv pf. Warren Fy & Pipe (7 ‘Waukesha Motor (1) Webster Eisenlohr . _ Webster Eisenlohr pf. Wells Fargo = Wesson Oil & S Wesson Oil & Sn pf (4) West Pa Elec A (7) West Pa Eiec pt (6) West Pa Elec pf (1) West Penn Pwr pf (£) West Penn Pwr pf (7) Western Maryland - Western Md 2d pf. Westingh'se 1st pf( Weston Elec Inst(a85c) . Weston Elec Inst A (2) Westvaco Chem (1) - Westvaco Ch 5% pf 113 ‘Wheel & Lake Erie ‘Wheeling Steel Wheeling Steel pf (16)_ White Motor White Rock M S (1.40) __ White Sewing Machine_ White Sewing Mach pf_. Wilcox Oil & Gas Wilgon & Co (50¢) Woolworth (2.40) Worthington Pump Worthington Pump pf A Worthington Pump pf B Wright Aero (al) Wrigley (Wm Jr) (73) — 67,300 Yale & Towne (160c) - 500 Yellow Truck._ 320 Yellow Truck pf (335) _ 169,400 Young Spr & Wire (73) 1,139,800 Youngst'n Sheet & Tube 13,700 Youngst'n S&T pf 5%) - 122 bpaid last year | zeceivership or being rorganized FINANCIAL. W Net, High. Low. Last. chge. 1 3% 3%+ % % = S % 1% + 30 481 11 16% 29% + 8% 49% 401 + 8% Q114 + 3% 42% — 13 7915 +16% 84 +16 % + 2% 65 +19% 13+ % 11% -+ 6% 35 + 8% 128 75 & Shrevpt 137% 128 4% % 10% 5 19 % 16% 38% 114% H) (2) STEEL GONCLUDES YEAR OF GROWTH Eighty Per Cent of Capacitv for Industry as Whole Forecast in 1937, (By Cambridge Associates.) Another year of expansion has been concluded by the steel industry. Al- though the average rate of produc- tion for the year was only about 60 per cent of capacity, the peak was around 80 per cent, necessitating a rush to get new machinery into op- eration for the meeting of demand. Steel is not, as it is generally con- ceived, a single commodity, except in the ingot stage. Finishing capacity is made up of various types of ma- chines equipped to turn out differeni products. Thus 80 per cent of capacity for the industry as a whole may mean 40 116% 124% 1214 23% Pacific __ Pacific pf_ Union (a2) se A 3 (al %) - se Elec (a; 4 9% 964 50% 15315 5 ’~'; ) 160 333 39 32 35% LEpf (5%) per cent for rail-producing machinery and 100 per cent for machinery turn- |ing out sheets and strip. Sheet and strip machinery, in fact, | was in large demand in 1936, and makers are booked well into 1937. | Automobile demands for wider sheet | for stampings have been a potent fac- tor, but other demands have bulked large in the total. The new machinery not only turns out wider sheets than ever before but it turns them out faster and at less cost. As a result, the mills which were not equipped with proper machinery were definitely | handicapped. In the heavy steel categories, rails and structural steel, demand was disappointing in relation to estimates at the beginning of the year. Never- theless a substantial increase was wit- nessed, and further improvement in “|the demand is a virtual certainty. | Alloys are finding greater use, and | the whole industry is becoming con- scious of a trend toward greater | specialization. Educational programs on the uses of alloy steels are stim- a3 # - * + $ + - - 2 1293 421 413, 105 R7% R 111y 42% 11% 34 9 W Th given in the above table are the annual "‘euh payments based on the latest quarterly or half-yeariy | including extras. tAccumulated dividends d Companies reported in | NEW GOLD VALUES SEENAID TOTRADE Tr:partite Pact Promises Better International Ex- change Stability. BY F. PAYSON TODD. (Cambridge Associates Staff) Declaring that we have created a new type of gold standard, Secretary of the Treasury Morgenthau gave ex- pression, on the occasion of the French devaluation last September, to the growing belief that the closest ap- proach to the old type of international gold standard that can be expected for some time is a system patterned after the present English monetary arrangement. And while many may lament the benediction on the true gold standard, it is likely that a return of internationel confidence and in- creased flow of goods across our bor- | ders will come in spite of it. Development of the present attitude towards international money matters may be traced through a period of years, but the first concrete expression of it was contained in the so-called Britain went off gold in 1931. Taking a real- istic view of the situation, this report recommended Great Britain’s adop- tion of & managed currency for the of money, and consequently, the do- mestic economy, irrespective of con- ditions obtaining outside the realm. Briefly it (1) acknowledged the de- sirability of a gold reserve to make settlements in the international bal- ance of payments, but held that (2) domestic enterprise could and should be freed from dependence on external influences of a temporary nature and protected against the shock of sudden and basic readjustments. Confusion has reigned since Britain’s historic act, owing to the fact that no agreement between nations could be reached. The United States surren- dered to the new theory of monetary control in 1933, while France strug- gled valiantly against hardships to keep the franc-gold relationship she had prematurely adopted. All nations were interested in stability between currencies, but one group maintained that the simple gold standard offered the logical means since it precluded manipulation, the other that manage- ment of currency would remove the pressure towards changing existing international currency relationships. In short, the whole period between the British action and the French move, five years almost to the day, was characterized by disagreement First Mortcace Loans District ot Columbia— Nearby Maryland — and /irginia— Homes Apartments Business Properties Terms from 3to 15 Years Also Monthly Payment Loans 1321 C¢n-. Ave. N.W. between powers on the shape eventual stabilization was to assume. To be sure, the end is not yet. The so-called gentlemen's agreement of | September 25, 1936, between France, Great Britain and the United States was not a stabilization measure in fact. But because of this action the road towards eventual accord is clearly defined, and barring the in- Jjection of extraneous influences, gyra- tions of currencies in terms of each other can be reduced to the point where there is & minimum of inter- ference with the normal course of trade. Thus it is felt in some quarters that we are opening a new chapter in foreign relations, out of which will grow the greatest exchange of | goods between nations the world has known. Tangible evidence of trade revival expectations of other nations lies in the desire expressed by both Great Britain and Fragce to enter into negotiations with the United States looking towards revision of war debts. The former is in a position to con- clude an arrangement, having shown material gains above 1929 levels of business, although it is unlikely that an agreement will be reached without extended bickering. France has not recovered as yet the sharp losses of gold occasioned by the uncertainty of the pre-devaluation period, and is therefore far from the point of mak- ing offers which can be even con- sidered. Nevertheless, the anxiety of these nations to bring the subject to light again indicates their desire to pave the way for financing of new ventures. Perhaps the most serious threat to the working out of remalning diffi- culties is the growth of alliances and defenses. Fundamental as a basis for monetary accord is & mutual trust between nations. In a year when the extended Chaco dispute came to a conclusion amid the roar of guns in Ethiopia; when the closing of the Ethiopian difficulties merely prefaced a civil war in Spain with serious international implications, little hope can be extended for rapid progress in the restoration of a smooth flow of world commerce. Economic nation- alism, which grew out of internal stresses in many countries, has ripened into a distrust beyond the power of diplomats to allay. Many Developments in Year. Tmportant monetary developments of the year were many. Beginning on » silver note, January saw the forma- tion of a pact with Mexico for the purchase of the white metal. This was later followed by & similar pact with China. In February blocked credits in Braszil were released almost in full, and trade relations between that country and the United States be- came cordial. Hints of a triangular ON IMPROVED D. C. PROPERTY Immediate attention on your ap- plication for buying, rebuilding or refinancing. Loans payable monthly. No charge for appraisal if loan is not made. Interest charged only on unpaid balance of principal. EQUITABLE C OPERATIVE BUILDING AssocwrmN 915 F STREE{. N.W. Organized | exports of capital. arrangement between Great Britain, | | France and the United States were heard in April, but the subsequent election of the Socialist Premier Blum | stilled the rumors. The Dominion | Province of Alberta defaulted on a | bond maturity in April, and Poland placed an embargo on gold exports in the following month. The Blum gov- | ernment placed severe restrictions on Following this a period of quiet held, but on July 19 the franc was seized with a weakness from which it did not | recover. The Spanish civil war began | in the latter part of July, which con= | tributed to French difficulties. Finally, on September 25, devaluation was an- nounced with the approval of the United States and Great Britain. \PULP CONCERNS REPORT SUBSTANTIAL PROGRESS B: the Assoclated Press. Employment, wages and production |in the pulp industry increased sub- stantially last year, Census Bureau statistics show. At $167,208,000, total value of the industry’s products was 24.1 per cent over 1933. Wage earners last year numbered 23,623, an increase of 17.7 | per cent, and wages totaled $23.401,- | 000, an increase of 29.3 per cent. Irish residents of London rrc;ntlv observed the fifteenth anniversary of the signing of the Irish treaty. Switzerland and Holland, Italy and Czechoslovakia followed. The long | outward flow of gold from France and | her internal deflation was arrested, but as yet confidence has not returned sufficiently to start an incoming tide of French capital. Late in November, Belgium, the | Netherlands and Switzerland accepted the invitation of the initiators of the | gold exchange of October 13 to join in stabilization efforts. ~Other nations | are walting until the advantages are | more tangible. 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