Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-11
Washington Ticker
BY CLINTON COFFIN.


AS the Stock Exchange panic of 1929
recedes into history it is becoming evil
dent that its damaging effect on the
country's economic structure has been
markedly less than that inflicted by
preceding speculative collapses, in 1907
and 1921. Two points leading to this
conclusion that attract the notice of
banking observers are the entire alb
Sence of national bank failures and the
equal absence of exorbitant rates of in
terest, even in the period when finan-
cling the market Stringency was neces-
stating transfer of cash and bank
credit on the most spectacular scale yet
witnessed.
In 1921 collateral interest rates touched
80 per cent and in 1907 the top was
even higher. This inevitably transferred
tremendous strain to business opera
tons and forced commodity Liquidation
that Wed with the security liquidation
in occaSioning widespread losses. In
1929 money never varied perceptibly
from the per cent interest level.
This last experience was in no re-
spect money panic" John w. Pole,
controller OF the currency, observed.
There wasn't any shortage of credit in
the country and there isn't any now.
The Federal Reserve System was in
condition to furnish cash to any reaSon-
able extent on proper paper, but in fact
wasn't called upon for more than nor
NAL Reserve action.
1T is pretty clear, after the expert
ence, that this ability to endure the
SeVerest shocks that can be presented
by speculative recession is now inherent
In our banking, monetary and credit
structure. The establishment of the
Federal Reserve System, and the regu-
larization of its functioning after Is
years or experience, is unuueStionably
the factor that operated to hold money
rates level and conf1ne the play of en-
forced liquidation exclusively to the Sc
curities field"
From 1924 until late in 1927, when
American absorption with domestic Sc
curttieS pushed its way to the front, this
country was furnishing capital to for
eign nations at an unexampled rate
Flotations Of foreign bonds, notes and
finally corporation stocks on markets
here ran up totals quarterly that almost
equaled war loan performance.
1t remains an open question as to
whether the outflow Of domestic CAPT.
tai will set In again. In Washington,
diplomatic circles rather look forward
to the prospect, but as yet the invest
ment banking houses which manage
such enterprise seem not to have sub
mitted new proposals Of the kind to
Federal agencies for the tentative sort
of approval that was customary two
years ago In such matters.
1T seems to be fact that there Is a
rather limited field at the moment in
Europe for borrowing from the United
States, as compared with the showing
in 1927" Grosvenor B. JONES' Com
merce Department specialist in finance,
remarked. Germany and German In
duStries probably present the potential
borrowers who will make the first call
for new funds, even though the recent
loan of $125O00.000 arranged for the
German national government by the
Swedish match combination takes care
of the current needs. There will be
some demand from Italy for industrial
expansion, from Austria for electrif1ca-
ton of railroads and from Hungary for
general purposes.
France will not be borrower abroad
and will probably supply all the main
capital needs of French zones of inf1u-
ence. Great Britain has never bor-
rowed heavily from private American
funds. Much will depend upon interest
rates, but have some doubt that rush
of American funds to foreign countries
is going to set in again at any early
date"
Perhaps the most popular item Of
American edible products with world
trade just now is the ordinary canned
sardine. One of the notable things
about the trade in it, rapidly expand
ing as It is, arise, from the demon
stration that the worlds tropical areas
are shown to be turning to American
canning plants and American coastal
waters for an essential part OF their
diet.
it appears that, while Belgium, Great
Britain and Canada each take more
than 100000 pounds Of American
sardines every 80 days the dark-skinned
races of the world furnish a more
important demand. The Philippine
Islands alone consume 1,400,O00 pounos
of the fish q month; British Malaga
takes in excess of $685. 900 pounds; Java
is put down for $4,000 pounds. while
the balance of the Netherlands East
Indies consume 100000 pounds in
British India, Mexico, and the Ar
gentine are other stable export points.
The only other American fish product
that finds a world market in quantity
approaching the Sardine trade Is
canned salmon, and the exports OF
this relatively expensive food are con-
centrated to Great Britain and Aus
tralia.
What IS a perfect diamond? There
Is an official answer now, set down by
the Federal Trade Commission, With
the aid of representatives Of the entire
national jewelry industry, and 1t will
probably be of interest TO every hopeful
engaged girl. AS the commission puts
it, perfect" diamond is one which
is free of flaws, cracks, carbon spots,
clouds, cloudy texture or blemisheS OF
any kind when examined by a normal
eye under an ordinary diamond loupe."
A diamond loupe is the usual form
of magnifying glass used by jewelers.
and watch workers.
Drought has caused heavy damage TO