Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-23
SEES NO MENACE
|. IN BROKERS' LOANS
Bank President Points to In.
creased Prosperity and
Wealth of U. S.
BY JOHN F. SINCLAIR.
Special Dispatch to The Star.

special Dispatch to The Star.
CHICAGO, May 23.--Eugene M Stew
ems, president of the Continental Ma
tional Bank & Trust Co. Of Chicago, the
States outside of New York City, does
not see cause for alarm in the total
amount of brokers loans now on the
New York Stock Exchange.
1T Is dif1cult for any person or
group of persons, without more knowl-
edge than we now possess, to say
whether the five and one-half billions of
dollars at present invested in brokers
lonas are too much or not" Mr.. Stevens
said. Perhaps, based on the wealth Of
the country, the present total does not
represent as much credit as two and
one-half billions did five years ago.
Business conditions are basically
sound In the Middle West-in fact, they
are better than we dared hope for six
months ago. 1t is surprising how bust
of credit"
Are the banks In the Chicago terri
tory lending much money In the New
York market on call?" asked
mo. Hardly any. We have a legiti-
mate commercial demand in Chicago. A
customer who has done business with US
for years came In this morning and
asked for 100000 for business expan-
sion. He was entitled to 1t and we gave
1t to him at per cent, although we
could have put that money out on call
in New York on the finest security on
earth and we could have Melted around
IL per cent
Asked why deposits in the large CEN
trail banks are down below what they
we're a year ago, the Chicago banker
said:
THE deposits are off for several rea-
sons. Probably the outstanding one is
the number Of people who have sent
their money to New York to get the
high call rate. OF course, it is higher
now than 1t has been in years. Nat
urally. with high money, short-tirne
commercial paper rates are high, and so
are bonds.
II happen to be on the board Of
trustees of Chicago hospital. which
has more than half a million dollars in
the banks. One of the trustees called
up this morning and said we could buy
hlgh-grade Government securities to
net nearly per cent. Instead Of leav-
ing the money in the bank, he felt it
should be invested until it was needed
Large profits would result. I had to
agree.
Naturally, people will not leave their
money in the banks in large amounts
at 3 per cent when they can get high
grade securities very much above that
figure.
These two factors are largely re-
sponsible for the slight drop in bank de-
posits."
How many Of the people Of China are
starving No one knows authoritatively. It
Is known that at least 1000, 900 Chinese
men, women and children are suffering
from lack Of food; some reports In
crease this number to 100000.
The chances are that the correct fig-
ure Is somewhere In between.
Ernest w. Picknell one Of the chief
field directors of the American Red
Cross and formerly superintendent Of the
Associated Charities in Chicago, an un-
usually capable, thorough and serious
minded investigator. has been delegated
by the Red Cross to make an intensive
study of famine conditions and report
at the earliest moment possible with
full information. He expects to sail
soon for China with three other Red
Cross men.
This work will have the unqualified
support of the Chinese national gov
eminent at Marking and Of the United
States Government.
It has been suggested seriously in
recent weeks that the surplus wheat in
the United States be purchased by the
United States Government and given
to China. This surplus on July will
be very considerable, 100000 bushels
in excess Of the carry-over Of last year,
probably.
At the same time, harvesting has al
ready started in Texas on the new crop
Of Winter wheat, now estimated at
more than 625,00o,0o0 bushels.
May / there were more than AZ
467,000 acres in Winter wheat in the
acres harvested in 1928. This is an in
crease Of IL per cent in the United
State alone. Increase in both Winter
and Spring wheat acreage is shown
constantly in Canada and the Argen-
tine. So the carry-over this year In
wheat is the largest In years.
To return to the faminine In China.
When the facts are definitely ascertain
ed by the United States it Is felt that
there will be no difhculty raising funds
to meet the situation.
Ray M. Hudson, United States
Bureau of Standards. told the National
Retail Dry Goods Association that the
key to prosperity in these days of keen
competition and shrinking profits could
be given in three words, simplify and
standardiZe."
STANDARD sizes, standard colors,
standard supplies and standard COM
modities, these are the demands OF
business today" he said.
Dry goods merchants are learning
rapidly that the expense of assorted
lots of goods, which mean big in
ventories, heavy maintenance costs, OBJ
solete stocks and idle investments. is
the hole into which profits are poured.
The three words used by Mr.. Hudson
are really the basis upon which the
most successful distribution in modern
industry rests.
r. H. Ashton, president of the Amer
lean Railway Association, believes that
no other nation in the world could
continue as careless as the United
States and survive. Only the almost
li.nitless resources and wealth of the
United States prevent a catastrophe,
he says But the condition. constitutes
a serious strain on the financial re-