Evening star., 1925-07-10
URGES REDUCTION
IN ALLIED DEBTS
Economist Says U. S. Should
Take OFF Amount Dollar
Has Gained in Value.
BY CHAS. r. SHAEFFER.

BY CHAS. r. SHAEFFER.
Reduction of allied debts TO III.
United States by more than a quar-
ter, to compensate for the present
advanced commodity value OF the
dollar. compared with its value when
the loans were made, is advocated b.
Prof. Gustav CasseI Of Sweden, one
OF the leading economists Of Europe.
In an article in the current America
Bankers Association Journal He
also advocates further reduction Of
the debts by substantial ratio rs.
a compensation for the extra bur
den" which he says the American tar
ff imposed on nations making pay
ments 10 this country
There can be no doubt OF the
legal obligation of the foreign gov
ernments to pay the debts. The
principal nations indebted TO the
United States wish to get rid OF their
burdens, or at least to see them re
duced TO minimum, without having
their own reputation for fnancia
solidity diminished thereby or def
nitely excluding themselves from the
possibility of financial help in future
wars. But such desires certainly 40
not deserve any support whatever.
Acknowledgment OF the claims or
the United States does not, of course
exclude the possibility OF discussing
the amount that can rightly be claim
ed, and the economic conditions 10
der which such claims are justified.
Notes Change In Values.
Most of the advances were rnada
when the general level of prices in
America was much higher than nov
The value of the dollar IN which the
advances were made was much less
fhaf hA NrA1 AoT Ia a.
Where the monetary unit Ia subjected
TO violent alterations It 10 bound 10
lead to an intolerable amount OF rea /
injustice. This is doubtless the case
with regard to the foreign govern
nent indebtedness now under discus
sion.
The present dollar exceeds the cid
dollar in value in the proportion Of
21s to 15s. This means that the
ought to be reduced by 2T.4 per cent
In the case OF Great Britain, there
fore, the debt ought to be reduced
from 81 ,577,000,0 900 by about S1,25o.
100000 10 s3,327, 900 900. In the case
Of France the principal Of the debt
would be reduced from s5,34o, 600 900
TO about s2.425 ,o0o, 900. The reduc
tions are substantial enough, They
cannot be said unjustIy to reduce the
SldltilB OI Inb Ch1t6O SLdk8S. ouI
they would 90 a long way toward
making the payn1snts q financial
possibility for the indebted govern
ments.
Local Securities.
While business on the. local Stock
Exchange was good, compared with
the record made Thursday. there were
no especial features to the trading
Prices showed good strength through
cut the list without change.
Railway common was nominal. but
the bid price was advanced to 104Is
and the asking quotation to 1861.
The preferred sold at 81. -
Capital Traction was quite firm al
par.
washington Gas seId In a small wsy
at So to 62L
In the bond section Gas IS were
traded in at 1o51s for round lots and
1925 TO 1031. for small lots.
In the unlisted list q quotation in
the stock of the Washington Base Ball
Club was interesting, as II sensed the
better chance for the club repeating
in the present race, when the bid was
increased to 70. but buyers and sellers
are too far apart in their views To
permit Of transactions.
Dividend Checks Sent Out.
The Real Estate Mortgage and Guar
anty Corporation sent out the semi
annual dividend checks this morning
together with the report OF the presi
dent, L. e. Breuninger.
It reports the business Of the cor
poration for the fiscal year ended June
80, 1925, has been very prosperous
one. The assets increased from ST.
23.616, June 80, 1924, to $2,354, ,07s,
June 80, 1925, and the net discounts,
surplus and earnings have increased
from s145.426, June 80. 1924. to $3e7,-
319, June so. 1925. After paying $5s.-
900 today the net, surplus, discounts
and earnings amount to S309 319.7s.
The corporation has paid 8 per cent
per annum from the time Of its organ
ization on the preferred stock and >
per cent on the common stock until
the present dividend, when the stock
holders received an increase Of one
fourth of one per cent TODAY Mr.
Breuninger stated that the outlook
never was better and that all signs
point TO the coming year being one Of
larger growth and larger earning
power.
Leave Here for Convention.
Sixteen Representatives of the local
chapter, American Institute OF Bank
ing. left Washington at 10:55 this
morning for Kansas City to attend
the annual convention Of the national
organization, from July IA to II.
Those comprising the delegation
include Harold W: Burnside. r. Jesse
CLANCY, A. E. Henze, Wilmer j.
Waller, Charles! D. Boyer, Clarence
F. Schatz, Alfred w. Sherman and
Mrs, Sherman. T. Hunton Leith
George E. Irelan, d. e. Wisecarver
Raymond p. Lochte, Mrs. Helena D.
Reed, Catherine Kreis, Florence Nj.
Miller and Mabel Royce,
/. c. G. Values. Southern Railway.
The Interstate Commerce Commits
sion today announced tentative
valuation Of S251, $3.50 on the proper
ties of the Southern Railway system
which proved TO be a figure much be
low that assigned by the corpora atiop
itself. The Southern has outstanding
capital issues against its property
with par value of S425, ,47S,473, while
it's book investment account is S32T.-
922,214.
The announcement today of a tenta
tive valuation for the Southern, which
is more than $40. 200, 900 below that
company's book investment account
covering it's own property, IL expected
to institute q controversy which NAV
be pushed into the Federal courts.
The tentative valuation as found
today will be laid before the Southern
officials for criticism, and the commits
sion fherNaffer will give opp0rtunitV