Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-11
Washington Ticker
By the Associated Press.


Possible methods of checking the
regime of high interest rates in the
call money market are now being
studied by Senator Edge. New Jersey,
member of the Senate banking and cur
rency committee. At least one factor
in the situation might be dealt with
by legislation, in his opinion as so far
formed
LAS far as I can see, the high call
money rates and the indirect effects
of it are really the only points that may
need attention" Senator Edge declared.
IT haven't been able to find that, be-
cause of the high collateral loan rates,
commercial borrowers in any region
have been unable to obtain the regular
cash advances from banks which they
have normally been entitled to receive
at ordinary rates.
Nevertheless, with the run Of 10, IL
and II per cent interest rates on the
Wall Street market, there has been a
powerful attraction tending to build
up credit stock Of immense size, earn
Ing very large return, and directed
exclusively to stock market loans.
don't think this sort of lending should
be forbidden, but to prevent the crea-
ton Of an extra bank credit system in
the country 1t might be discouraged.
Nov, one of the ways in which the
situation might be met and these high
rates perhaps curbed would be to enact
an amendment to the Federal income
tax law by which the income of indi-
viduals or corporations could be prefer
entially subjected TO an increased tax
to the degree to which they had been
earned by abnormal interest rates. That
would perhaps take the attraction out
Of the call loan market for lenders. I
have gone far enough into the subject
to discuss it with Secretary Mellon and
am trying to get all the information
can on the subject"
American manufacturers of airplanes
and operators of air transport are
following with considerable interest the
attempt to get an international conven-
ton governing air transport, which will
be the subject Of Paris conference
next month, to which all nations have
been invited to send delegates.
Our principal interest lies In the
standards of airworthineSs and the reg.
ulations for air use which may be agreed
upon" said William p. MacCracken, IT.,
who will head the American delegation
to the gathering. The present inter-
national convention, to which the
United States never adhered. set up a
commission to prescribe traflc and air.
worthiness regulations. In 1923 we eff
fected q Pan.American Convention, in
which these matters were left largely
to settlement Of each nation concerned,
Germany, which as q nation failed
like the United States to adhere to the
original international agreement, was
largely instrumental in getting the
Paris conference summoned It Is to be
expected that issue Of international ver-
sus national control of air commerce
will be thoroughly debated at the COM
ing sessions"
Deep disappointment is expressed in
offlcial circles over the collapse of wheat
prices which has followed the inaugu-
ration Of voluntary export rate cutting
by railroads on wheat and Aour at the
suggestion of the administra lion. Never
theleSs, 1t Is not expected that the price
drop will serve to prevent the carriers
from putting the temporarily reduced
schedules. which lower the cost OF NOV
ing wheat to the seaboard from the
West by about cents per bushel, into
effect.
THE step represents the possible OPP
portunity OF letting American producers
Into the world market on q little more
even terms with the Argentine and
Canadian growers who have lower
transport cost" said Senator Capper,
cause Of the price fall"
Letters from the Western wheat belt
which have come TO the Kansas Sena-
tor since the rate.cutting program was
initiated have indicated considerable
interest In proposals for reducing
wheat Hcreage and so limiting the size
Of future bread crops.
One steady source Of Government
revenue Is now fully developed and at
forded by the Panama Canal. To the
close Of business on May. 3, the last re-
ported date. the canals toll receipts
this fiscal year have totaled $2S,iAl, les,
and operating expenditures have been
Se,044,6ae. The net operating pfofat Tor
the year will considerably exceed 4i6,.
0o0, 600, approaching toward, o fair re-
turn on the 5000, 100000 cost OF cutting
the isthmus. a-. ,~-e-e
Some almost startling foreign trade
increases are being exhibited by the
growth of world tastes for still novel
and typieally American electrical prod
ucts. Electric refrigerators shipped
abroad during March were valued at
$l,417,o20, or just three times as much
as exports of like articles In the same
month last year. Radio sets exported
in the same month were worth 81 ,ASe,-
600, or almost double the value OF ex-
ports for the same period year ago.
Insulated copper wire and cable ship
rnents, which 20 to installation and
servicing of electrical equipment, also
RAW