Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-04
MINING STOCKS.
Washington Ticker
BY the Associated Press.

BY the Associated Press.
Wall Street prognost!cators were wrong
again on the Federal Reserve Boards
report of weekly loans of New York
member banks to stock brokers and
dealers, as for the seventh consecutive
week the loans increased to set a new
high record of $6,804, 100000. On Wall
Street there had been some predictions
that decrease would be recorded for
the first time since the week ending
August IA.
The loans for the past week-that
ending october D did display, how
ever, a response to the present status
of the stock market, of declining rather
than rising prices. The increase OF The
loans for the past week was $43,O GOO, 900
over the previous week, which had In
turn shown one of the highest gains OF
the year, with 1892, 100000 more than
the loan total of the week of September
10. The smaller increase was interpret
ed to be due to lesSened activity in the
stock market.
Federal Reserve officials feel that the
continuance of the upswing in these
speculative loans, with its concomitant
effect of being an important factor IN
the maintenance of the tightness OF
credit, is an affair which cannot be
greatly remedied through artificial
means. They believe that the diminu-
ton of this flow of credit into the spec
ulative field will be accomplished chiefly
through a natural and perhaps gradual
readjustment of the business situation.
If, as present induces portend, there
q, c1apkpninc nf the 6llSi.
ness pace from the high activity OF the
past Summer, this slowing up OF buSl-
ness will have a SOLDERING effect upon
speculative sentiment and will bring
about the apparently desired objective
of reducing these speculative loans 10
basis commensurate with what the
Reserve officials believe should be the
credit allotment of the stock market on
a par with its activity.
The anomalous situation OF sub
siding stock market and increasing
speculative loans is explained by the
Reserve System officials as due in part
to the recent extremely large financing
of investment trusts, particularly dur
ing September, and also to the heavy
volume of new capital issues. The
threat of certain Senators to seek a
thorough investigation of the brokers
loan situation has subsidized for the
present at least. probably because they
have come to the belief that there is
no legislative remedy and also because
they may haze come around to the
view of the Reserve board members
that the condition can be allev1ated
by natural economic factors.
An interesting index of the movement
of credit was drawn by officials from
Yesterdays brokers' loans report, name
ly that for the second consecutive week
the banks outside New York were fur
nishing the demand for credit to move
crops and for industrial needs by di-
minishing their loans in the New York
New York, according to the report.
decreased their brokers' loans during
the past week by $50.000,000 under the
preceding week. The gain came through
SAT 900 600 increases for the past week,
both by the New York member banks
and by corporations and individuals.
The loans by corporations and in
dividuals-those "for account of others"
now amount to nearly so per cent Of
the total brokers' loans, having for the
past week a total of $3,907 zoo, 900,
compared to the New York member
banks loan figure of $1,071 900. and for
out-of town banks, $1,826, OO0, 900. The
fact that these non-banking lenders
control the situation is one of the
obstacles in the path of any corrective
banking measures which might be at
tempted by the Federal Reserve System.
In publishing a report containing
trade practice conference regulations
adopted by 81 different industries, the
Federal Trade Commission says that
these conferences afford effective
mechanisms "for self-regulation and
self-government of industry" But the
oi,.~ Of thu rn0111o tp1y oy1fNr0or1 ont
in the hands of a disinterested i'm
partial governmental body such as the
commission, the report says, adds ma
terially to the general observance of
the rules" adopted by the trade con-
ferences.
The commissions enforcing power
"obviates the necessity of the use of
such power" The report said that out
of 800 to 400 rules adopted by indus
tries the power of the commission has
been invoked with reference to only a
dozen regulations.
Under present indications it is very
likely that the two amendments to the
tariff bill, adopted by the Senate, pro-
posing the future abandonment Of for
eipn value as q basis for assessing ad
valorem rates, will be enacted into law
Congressional leaders do not believe
that any strong opposition to the do
nestle valuation plan will develop In
the House. -
Until the bill is enacted into law with
the amendments, the Treasury Depart
ment and the Tariff Commission viii
not set I'D machinery to revise the pres
ent valuation formula. The Tariff Com
mission under one amendment woulc
be authorized to convert all ad valoren
duties into rates based upon domestic
valuation and report to Congress the
revised percentages by January l, 1882
Under the other amendment, a Govern.
ment agency, probably the Treasury
would be instructed to ascertain the
most practicable formula Of domestic
valuation.
"The foreign value basis Of assessing
ad yalorem duties" Chairman Smoot Of
the Senate finance committee says, "ha;
had a long trial and, progressively ovel
| the period of its application, shown it,
unSoundneSs. The basis has made II
possible for INSCRIPTIONS importers II
GROSSLY undervalue the commodities
| they bring into this country. The do
nestle valuation would overcome All tns
evils Of the present system OF dutiablt
value, would give to American labor
| industry and agriculture that measure
| Of protection intended for them undel
the law, and result In an increased rev
enue to the Government through tne
prevention Of differentiation OF I'M
ports now possible"
s @