Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-19

Washington Ticker
By the Associated Press
For the remainder of 1929 finance
and industry In the United States will
have to be conducted in the face of a
commodity trade balance much less
favorable" than has been experienced
in recent years, but should not find the
experience either unsettling or depress-
ing to general business. This is the con-
clusion formulated by the Government
trade observers after considerable anal
ySis of May trade figures, which showed
the Nation in a month had purchased
Sl4,000,000 more in foreign goods than
it sold abroad as exports in the same
period. This is the first month in three
years in which such an import excess
has been produced by months foreign
trade.
IF the present price levels of wheat,
cotton and some forms of the meat
products which bulk so largely in Amer
lean export totals continue through the
Fall" said Grosvenor M. Jones, chief
Of the Commerce Departments finance
section, we may anticipate that the
national favorable balance of trade will
be considerably below that Of 1928,
which set a record only exceeded by
the years Immediately after the close of
the war. But it would be wrong TO in
terpret the large totals of imports that
may continue to be brought in each
month as a bad factor in the business
picture. If these imports are made up,
as usual, of raw materials, of stuffs
that constitute the basis Of internal
indicate national ability to maintain q
high state of activity in the creation
of new wealth.
There has been a disposition arising
from the experience Of England on the
part of some American economists, to
expect that our national balance of
trade would necessarily turn very
shortly to favor foreign nations. This
is because the continued flow of capital
out of this country to foreign invest
ment runs up great sums in interest
and dividends, which have to be paid
back to Americans largely in the form
Personally, 1 do not consider that this
has happened yet. One months trade
figures, especially month in which
normal trade currents we're disturbed
by special factors, do not constitute
an extensive base for making estimates.
We shall probably have a balance of
trade less favorable for 1929 than we
had for 1928, but we will, nevertheless,
continue to ship more commodities
abroad than we import"
one reason for expecting the con-
tinuance of favorable commodity trade
balance, with American exports is ex-
cess of imports. is that foreign lending
on a great scale by American capital
Is likely to be resumed. This has been
shut of In recent months by credit
construction in the United States. but
is likely to resume again with falling
interest rates here, and so long as
capital Is flowing out Of the country
economists expect heavy export bal
ances TO parallel it.
Foreign lending hasn't stopped:
there is only lull in it." Mr.. Jones
said. "A considerable number of loan
projects, approved by bankers and Dor
rowers, are held in readiness to 60 to
public offering in this country when
ever money market conditions Justify
1t. Further. there Is much direct in
vestrnent abroad now in course OF being
made by domestic corporations, which
does not take the character Of formal
loans"
Tin cans and pasteboard containers
have grown sufficiently popular for
cigar packing IN recent years to force
the makers Of standard cedar cigar
boxes to q considerable degree of In
dustrial revolution. The National Cigar
Box Association, which holds its an
nual meeting at Atlantic City next
week, will hear considerable about steps
which members have taken or may take
to meet the conditions.
Popularity of tin and pasteboard
containers has forced series of mergers
In the box industry" said DR.. Hugh P
Baker of the United States Chamber
of Commerce, one of the trade experts
invited to the session. Another thing
it has done is to require very heavy
increase in capital investment. Five
or six years ago cigar box factory
could be organized with about &2,00C
worth of machinery; today, In the light
Of necessity for low costs in the prod
ucts, 1t takes $4,000 worth of auto
matte machinery to equip even me-
dium-sized plant"
A very large portion of bituminous
coal sold during the coming years viii
be transferred under a standard form
Of contract, just drawn up and &C.
cepted by the National Coal Commits.
sion, representing the producing indus.
| try, and the National Association Of
Purchasing Agents, in which is included
most of the buyers of large coal con.
| signments. The principal advantage o.
the document form developed by thu
coal association committee, which wa,
headed by H. A. Glover of Indianapolis
and the purchasing agent group, whose
chairman was T. w. Harris, jr., Of thu
| Du Pof1t Corporation. lies in the brevits
and uniformity it offers. It is expected
| that its terms will hereafter apply II
! the largest part of the $50 900, 900 toni
| OF coal sold annually in the country or
contract.
Two-thirds of all automobiles sold a
! retail, one-half of all groceries anC
/ about one-third of the dry goods han
died by department stores now appeal
| to be sold on credit. The estimate wa
compiled by DR.. w. 2. Plummer of tht
| Commerce Department out of surve!
that took cognizance of the experience
of great numbers of business establish
ments in each line.
| Less than / per cent of the credi
purchasers. on the average, defaulted OF
obligations, the study further showed
The bad debts Of automobile credi
amounted to about one-third of pc
cent of the sales, while the bad grocer,
accounts were about one-half of l pc
cent of the credit business. Depart
ment store experience in selling on in
stallments showed the greatest credi
! loss, amounting to IL per cent, though
| on regular charge accounts dry good
merchants reported less than one-hal
Of per cent loss.
American silk manufacturers hav
triumphantly proven that silk cloth TO
parachutes used as airplane equipmen
does not have to be bought abroad
The first fabrics hich proved satisfac
tory in meeting the requirements o
| aviators who have to abandon tnei
planes whites till aloft came from abroad
but when the Bureau of Standards tool
up recently scientific analysis of tn
quality of materials demanded, q mum
Der Of domestically produced suitabl
silks were found. American makers ar