New Britain Herald Newspaper, January 11, 1929, Page 26

selling their holdings, thus come into possession of BANKING CHAPTER 5z, 2 o T fits which many of them are in & | positien to lend to the Stock Ex- \ | change until such time as the prices w B — of securities or of real estate suit them better. The abundance of mort- B M mh Wu gage money during this period has b ) led to the refunding of many mort- | funds, which have come back xmame | market, includin Members of New Britain Chapter, 31'::‘::;‘ fl::‘:’ Renahel oS A. L. B, at their meeting last night | trusts, floating issues easily in the at the Burritt hotel, were addreased | eriod of bank expansion, have also- by Benjamin M. Anderson, jr., New York banker and economist. Operations of the New York | stock exchange and the federal re- serve banking system were dis- cussed by the speaker. whose talk o mg corporations, forelgn banks, foljows: § {investment trusts, and so on, avail- “Iu response to the rising rates ,ie gor Joans on the Stock Ex- of interest at the stock exchange. | nange s the prior expansion in there has been an immense Increase | ornins pegets and deposits by the during the past year in “outside |, ,nye What does the long-run fu- money.” that is, loans not made fOT | 4,re hold with respect to the volume the account of chartered American |ge guch funds? The answer seems banks and trust companies, in the | fairly clearly indicated. For the brokers' loans figures. These loans | present, certainly, the expansion of are made for the account of indi- viduals, firms, corporations, forelgn s no longer making excessive re- banks, and private banks. The fed- | gerves. On the contrary, we have eral reserve authorities, recelving |lost $500,000.000 of gold since the weekly reports from the New York peak of gold holdings in 1927. The city member banks, place the figure | rederal reserve authorities are no at $927.033,000 on January 4, 1925, | longer pursulng an easy-money and at $2,165,066,000 on January 2, | policy. The reserves of the banks of 1929. These figures obviously cover the United States are no longer ex- only that part of the ‘“outside | cessive. The volume of new securi- which is handled through |ties currently floated s reduced, and ew York city member banks |the interest rates at which new and trust companies. The more in- | honds can be placed are not attract- clusive flgures of the New York |ive to borrowers who do not need stock exchange, covering all brok- to borrow. Assuming, then, that the ers’ loans, whether made through | period of easy money and rapid bank New York city banks and trust |expansion is over, the presumption companies or not, show an addi- |would be that the volume of liquid gional item of ‘“outside mcney” |funds in outside hands avallable for which amounted to $621,097,000 on |loana at the Stock Exchange would December 31, 1927, and $1,038,943.- | ultimately diminish rather than and have thelr gagees are in possession of liquid market loan. {then, of the great volume of free 080 on December 31, 1928. Combin- gages, with the result that the mort- | in many cases, large funds for stock “The original fountain and source, | funde in the hands of individuals, | Sooes g rasfotodend dhe of o real. soars vipradee i Ibank credit is over. Incoming gold | ERWIN MAKES PLEA " FOR AIRPORT HERE Believes Faster Trmlsportmim]i { Would Benefit Gity | A certificate of appreciation to the city of New Britain and the Stanley Works for efforts to further the cause of commercial aviation, and bearing an original signature of Col. land Dallas each have their flelds. Hartford's proximity to New Britain is an advantage to flying between | the two cities. A plane can get suf- ficlent altitude and coast from one town to the other. Let's put New Britain on the air map.” Sketches Air Mail's Progress Mr. Erwin sketched a short his- tory of the air mail which was start- | ed between Washington, D. C., and | New York city 10 years ago. He | told how the routes were gradually | extended toward the west until now San Francisco and New York are linked by mail service which takes a little over a day for a letter to pass. He explained that the air muail service is constantly on the gain was shown by the increase of the ing the two sets of figures gives us & total of “outside money” in brok- ers’ loans of $1,548,730,000 at the beginning of 1928 and of $3,205,- 009,000 at the beginning of 1929, &n increase of $1,656,279,000, or of 107 per cent “Will this great volume of ‘out- #ide money’ remain permanently at the disposal of the Stock Exchange? We- shall find our answer, I think, by considering the original source from which it came. How does it Yappen that corporations, foreign bank: Fosse n of large volumes of high- ly liquid funds which they can lend | corporations have issued securities, | to the. stock market at high inter- 'est rates? It has never happened be- fore in our history, even when money rates were much higher. “The answer is to be found in the Bxpansion of commercial bank kredit in the United States between karly 1922 and early 1928, an ex- ansion amounting to 141 billion ollars in loans and investments, nd to 13 billion dollars in de- osits. This great expansion of bank redit represents savings only in ninor part. It represents primarily & multiple expansion of bank credit based on excess reserves, the excess yeserves being due to (a) excess of gold, and (b) easy money policies at the Federal Reserve Banks. Unneed- ®ed by commerce, the new bank credit was utilized in real estate mortgage loans, in finance paper, and, above all, in the buying of bonds and in loans against mecurities. This facilitated an im- mense increase in the volume of new #ecurity issues, and a great number | ©of corporations obtained funds in this way, which they could use in paying off bank loans, in increasing working capital, in plant extension, and finally, in building up liquid re- werves of cash. A great flotation of Yoreign Joans took place at the same time, which placed the outside world in possession of a great volume of sbogt term funds in dollars. *“The bank expansion led also to a | great rige in the prices of urban and suburban real estate and in securi- ties. The old holders of real estate Skating Schedule NO SKATING ANYWHERE TODAY POOR PA BY CLAUDE CALLAN “Nora is goin’ to have company fo rdinner, an’ Ma wishes she had some way of lettin’ the company know that the nice napkins are some Nora borrowed from us.” y 'ght. 192§, Pusliswers Symdicate) installment | grow, though for a time, if interest | rates stay high, it may even in- crease, i “At high rates, foreigners are | glad to leave their funds at the dis- | posal of the New York stock ex- change. With lower rates, they will ! be disposed to take part of them | home, and in the process take some izold, Business corporations will | gradually tend to use their excess | of liquor funds. They have maturi- ties of existing obligations to meect ; which they would refund in an easy | money market, but which they individuals, and firms, are in | would pay off in the face of firm |flying fleld in New Britain was the | other office along the route, he con- | money rates. Presumably, too, the | not merely to get cash for indefinite contingencies but rather witha view |to very definlte purposes in the fu- | ture. They have got their money when it was easy to get, but they | mean to use it at a later time. In- | vestors lending temporarily to the | stock exchange look forward to the time when security prices will be more attractive, and when they will buy securities themselves instead of holding loans against securities. The long-run tendency would, therefore, be for the money in the hands of private lead- era to be reduced to more normal | proportions, unless it is fed by & re- newal of bank expansion. “The situation may be imperfect- {1y represented by the analogy of a | for a period of several years in a wide valley with many tributary | streams, and with great arcas In | which lakes could be formed. The extraordinary flow from the head | waters, which had filled and over- tilled the main channel, ccases, but |1t takes a long time for the level { to be reduced and for the flood to subside, The excess water comes pouring back from the tributary rivers and creeks and from the lakes which have been formed in the creck valleys. We might add to {our picture the influence of im- mense siphons (symbolizing the Tigh interest rates) bringing back | water even from those lakes whicn | could not otherwise release it. TENDERED FAREWELL PARTY A tarewell party was tendered | Joseph Ferony at the home of his | parents, Mr. and Mrs, J. Ferony of 186 South Main strect last night. | About 60 guests were present. Gamas |and dancing were enjoyed and a buffet lunch served. Mr. Ferony will |1eave for Middlebury, Mass., where | he will be employed by the W. T. |Grant Co. | | AUNT HET BY ROBERT QUILLEN “A good appetite ain't very hard to please, an’ it always looks to me like the longer a widower waits the worse fooled he gets.” (Copyright, 1928. Publimmers Syndicate) L b1 Ideal Home New Cottage Facing North End Park COMMERCIAL COMPANY INSURANCE REAL ESTATE Commerats! Tress Compony Bolding Tel. 6000 CaTE——" unusual fund of liquid | great river which has been in flood | riumber of routes since the service was created, not only to the west- ward but also to the north and the Charles A. Lindbergh, has been | presented to the Stanley Works by | i | the Daniel Guggenheim Fund for the ' south. Over 30 companies now are Promotion of Aeronautics. The cer- ¢Ngaged in carrying air mail. This | : hibited for the firn""" increased the number of air {ti0cate Jpas: exhiblied, o8 {miles flown. During the first year time last evening by Postmaster H. |, or"s ‘milion miles were covered, E. Erwin in an address on aviation 20o% 0 B 0 e ornual mileage is to the members of the Hi-Y club at | conoigo byl "over ten million. the Y. M. C. A. The Stanley “orka\[ e £t heinst eesatly by | recently had “New Britain” painted | qing" the air mail service, and has | on the roof of a factory building. A |gnce the Boston-New York route | plea for the boys to use their Influ- gy first cstablished, contributed | ence towards providing an adequate | y;ore mail proportionately than any keynote of the address. | tinued. The postmaster in the course of | Mr. Erwin told how local air mail his talk said he had been criticized | ig handled. The sacks are closed at for his activities in favor of aviation | 5 p.m. and sent to Hartford shortly recently by a woman who asked:|afterwards by train. The sacks are “Don't you know that the basic prin- | picked up at the Hartford railroad | | ciple of successful transportation is | station by a motorcycle which brings | | the ability to start and stop on in the air mail from a “feed” route | time2” [to the north and it is taken drectly | I realize this, and know that no | to the flying fleld in time to be pick- successful transportation system can ' ed up by the mail plane at 7:30 p. function properly without a place | m. to start and stop on time” added| “That the air mail saves much |the postal official, “but if New Brit- | time thre is no question, and time {ain gets a place to start and stop saved in such instances is vital to on time, schedules, fogs and storms | industries such as are carried on in will take care of themselves, s0 far New Britain,” averred the speaker, as we are concerned. | as he pointed out how industrics in | Starting and Finishing Place Needed | towns of much emaller size than New | "“We need a place to start and | Britain are at present taking advan- | finish. The more of these places|tage of the air mail service. | there are, the sooner storm and fog | The postmaster concluded his ad- | hazards will be eliminated. Planes dress by telling the boys what is be- now are being equipped with radio | ing done by two committees now In- | apparatus to enable the pilot to tell | Vestigating available sites for an air where he is at any time of the day | field in this city. He spoke favor- or night. This equipment operates |ably of two proposed sit in conjunction with apparatus on the | _Following the address a collection | ground. These outfits are made more | Of first air mail stamps gathered valuable by the multiplicity of start | [rom letters which were sent on in- {1ng and stopping places. Tt is obyl ial trips over 43 different air mail | ous that such utfits at Bridgeport, | lincs were exhibited. Envelopes with | New Maven and New Britain would | Aif mall stamps which crossed the | make flying much safer than if | Atlantic both ways on the Graf Zep- | there were mone between New York | Pelin were included in the exhibit. and Hartford. T S Tian | |*““There are towns and cities in the| _ WEOPENS ARTISTS stIT | | country not more than quarter the ~The rotion by the defendant for | size of New Dritain that have their | reopening of the suit in the matter own airports. These towns are far|o¢ J, M. Kavanaugh of New York | seeing communities. Rome, N. Y., 19| against Harry Kevorklan and ©t. | only half as big as New Britain, but | Stephen’s church was granted by | it has its own field from which one | Judge Henry P. Roche. The suit| of the princijal competitors of the | was heard some time ago, and a | Stanley Works can get its products | judgment was rendered by default |and quotations out in a hurry. Is|for §224.72 for the plaintift fo re- | the early bird that gets the business; cover for paintings made for the | |let's not be the lazy bird. church. The defendant claimed that | | “They tell us we aro too close to ! at the time of the hearing he was | !Hartford. 1It's only a step from|not prepared with his side of the, | Minneapolis to St. Paul but both |story and states that the paintings | | cities have fiying fields. Fort Wayne | were not for him but for the church. | JUST KIDS IN TO 1 COME <, DONT BE LIKE THAT ASH.! YGOTTA Certificate Sent to Stanley Works |PROHIBITION T0 GET HORE HONEY Tncruseof $35,000,00 for B forcement Approved Washington, Jan. 11 (M—An in- crease of $25,000,000 in the fund for prohibition enforcement was approv- ed today by the senate appropria- tions commuttee. The increased funds which would become available immediately to the prohibition bureau was voted on mo- | tion of Senator Harris, democrat of Georgia, who recently described en- forceinent as a “farce.” Since the prohibition law became | effective ten years ago, the govern- | ment has been appropriating around $18,000,000. and if the proposed in- crease goes through the money to use in enforcement would be trebled. | The increase must be approved by the senate and the house. The sen- ate committee has asked the prohi- bition bureau for a statement show- | ing how it would spend the proposed | $25,000,000. Including the funds for { maintenance of the coast guard serv- | lice the total appropriation in con- | nection with prohibition enforcement | thia year is about $15,000,000. BSenator Harris who is a dry, at- tributed the “farcical” conditionsin enforcement to the lack of appro- priations rather than to the admin- istration. He asked originally for $50,000,000, |Monocle Nearly Causes Loss of Eyesight | Paris, Jan. 11 UM—The monocle always crewed tightly into the right eye of Joseph Caillaux, former | premier, nearly caused him to lose | the sight of that organ when he met with an automobile accident near Chartres yesterday. He arriv- ed here iast night with a broken nose and the eye injured. Just too late to attend the opening sitting | of the 1929 session of the senate in | which he had intended to take part in the attack on the Poincare cab- inet, | The accident occurred when Calil- laux's machine collided with an- other automobile. No permanent | injury was suffered. ZEPPELIN'S PROGRAM Berlin, Jan., 11 (A—A strenuous program of flying for the giant diri- gible, the Graf Zeppelin to include 2 | trips to America in June and July, and thereafter a possible trip around the world, is outlined in a tentative schedule by Dr. Hugo | Eckener, the Zeppelin's master, to a | Tageblatt interviewer yesterday. The American trips would be | made with passengers, mail, and | parcels aboard, Dr. Eckener said; | the round the world trip would be undertaken soon thereafter, depend- ing, however, on his being able to replenish his motor gas in America. ENGAGEMENT ANNOUNCED Mr. and Mrs. Bernard McGuin- niss of 75 Smalley street have an- nounced the engagement or their | niece, Alma DeMore, to George Bur- dick, son of Mr. and Mrs. Charles | Burdick of Walpole, M The wed- ding will take place next month. GIRLS' CLUB ELECTS Mrs. Edith Eppler was elected president of the Monroe Girls' club at a meeting held lagt evening at ' the home of Mrs. B. Warner of 15 Lyons street. She will be assisted in office by Miss Helen Speziale as sec- | retary and treasurer. Plans for the coming year were discussed. Lunch- | con was served and an enjoypble evening passed by all. 5 FANCY APRON BALL The first of the season's social af- fairs of the Holy Cross parish will take placa tomorrow evening when the Children of Mary will give a fancy apron ball at the Y. M. T. A. & B. hall. The event of the evening will take place at 10 o'clock at which time all the girls and women will stage a grand march and prizes will be offered for the best looking aprons. The proceeds of the ball will | go toward the church. IF DocTor SAYS WALK TEN MILES A DAY YGOTTA, ANTC?;?!O = Wholesale The Stamp of Quality Your First Thought for Dependable Hardware KOLODNEY’S SNOW SHOVELS—Reinforced, to give strength and fitted with sturdy wood handles ICE CHOPPERS—The chopper is of steel, highly sharpened, and attached to a strong 50 c handle ... MAIL BOXES—The new improved type at a special price - 50° and up PYREX CASSEROLE with stand— Heat f glass. Will crel:k xv:vl'l(l)‘e’n i'nn:\?en s Mt s2’95 ROTARY ASH SIFTERS— Heavily galvanized ...... $2.69 OIL HEATERS- Here's a popular siza Heats a room quickly, smokeless and odorless $5.95 and up &AtSH B}?ILERS;:‘!’einloued copper ttoms, heavy gau mebal G e s e s1'98 PAINT—It's cheaper to paint than repair. Special for Satur- day only. VELUMINA inside wall paint, washable, all colors, per gallon .......... s2'79 100 rooms of Wallpaper, value 25¢ to $1.00 per roll. For Sat- urday only, per sl .00 We carry a complete assortment of Shc Skates in these popular makes. Barney & Berry and 34-95 and up Spaldira’s MICROMETER—Rachet stop, Brown & Sharpe make. For the mechanic. We carry a full line of all Brown & 35.40 Sharpe tools. .............. Are you in need of any of the following items: Gasouine Blow Torches, Door Checks, Andirons, and Fire Place Sets, Electric Heaters, Incinerators, Ash Cans, Weather Strips, ete. “MAKE KOLODNEY’S YOUR HEADQUARTERS"” KILEDKEY BRES HARDWARE COMPANY 220 MAIN ST. PHONE 909 “GROWING WITH REASON" “PROMPT DELIVERIES EVERYWHERE” BRISK. TEN- MILE \WALK! o City Items — Mrs. Johnson of 96 Shuttie Meas dow avenue reported to the police the theft of her son's bicycle from Central Junior high achool. Good coal makes warm friends. City Coal & Wood. Tel. 217.—advt. Walter D. Sullivan has sold & " two family house on Everett street to Harry W. Thompson. Mr. Thomp- son, in turn, has sold land In Bel- videre to Mr. Sullivan. Both sales were made through the agency of Carison & Carlson. Positive extermination vermin. Berg Exterminating Co., 76 Laurel, Hartford, 3-9907.—advt. Men's nest, Order of Owls, will hold & meeting this evening at ] o'clock at the home of James Meek- er of 80 Pleamant street. THE HERALD CLASSIFIED ADS Alphabetically Arranged fer Quick aad Ready Reference LINE RATES for CONSECUTIVE INSERTIONS Yoarly Order Rates Upon Application Charge Prepatd ! 3 days ¢ daye...1 line Count ¢ words to & line 14 lines to as inch. Minimum space 3 lines Minimum Book charge, 38 cents. Telophone 335. Ask for six time rate. The Herald will not be responsidle for errore after the firet Insertion. time 13:30 p. = dally; § & m. Saturday. ANNOUNCEMENTS Bartal Lots, Monaments ’ WEW BRITATN MONUMENTAL WORKM. 113 Osk 8t Monuments of sll sises and ~Sewcriptions Wessenshie Phens N33 Florists 3 ORTON FERNA. Very reasonabie prices. NDELLI'S GREENHOUSE, 318 Oak 8t._Telephone 318 FLORAL pleces, cut flowers and_potted plants_at reason prices. Hennin- ger's, 334 LaBalle 8t Telephone 4673-M, Lost_and Found [ CAMEO PIN LOST between 32 Lincolm St. and public library. Valued as gift. Liberal reward. Call 6276-R. FOUND, FRENCH BULL. Owner may have by paying for this ad and ap- plying at 50 Chestnut St Have You BABY CHICKS FOR SALE? Now s the time to Advertise. CALL 925 THE HERALD Classified Ad Bection