Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-29
WOULD EXTEND BAN
ON SOVIET GOODS
Senator Reed and Matthew
Vol Demand Sweeping
Exclusion Policy.
BY JOHN F. SINCLAIR.
Special Dispatch to The Star.

BY JOHN r. SINCLAIR.
Special Dispatch to Tbe Star.
NEW YORK, July 29-Russian pulp,
wood has been excluded from the Unitet
States, because it was loaded on tn,
boats by convict labor. Now American
manganese producers demand simila
exclusion of Soviet manganese, becauS'
it is produced by 'Slave" or forced
labor
Senator Reed of Pennsylvania ana
Matthew Vol. vice president of tbs
American Federation of Labor, haw
Joined hands In an attempt to exclude
all Soviet goods from the United State
on the ground that all such goods ar
produced by forced" or "semi-fcrced'
labor.
II we carry this policy to It's logica
conclusion, 1t means that much African
rubber, now supplying the Unite<
States, must be excluded. 1t means
too, that many South American prod
ucts, handled by "semi-forced" labo
must be placed under the ban.
American inspectors would nave
be sent out to all parts OF the world u
investigate where forced labor o
'slaye" labor is used. Such action woult'
create endless confusion and discord.
But perhaps the present move Is al
rected only against goods from Sovle
Russia. Then it is purely politlca
and not q business program.
If such a disastrous policy become
a. part of the law, and If we allow Ger
tain favored products to come in whn
we exclude others, the foreign trace
the United States will be put IN seriou
jeopardy.
goods. based on what is called forced
labor, is filled with dynamite.
Is the large increase in acceptance
holdings by the foreign central bank
taking the money and credit contre
from the Federal Reserve system? Man
think 1t Is.
Foreign central banks of issue, in
Guiding the Bank of International Set
Elements, have been buying banker;
acceptances in increasing amounts
the New York market Today thes
foreign bankers probably hold abou
half of the acceptanceS outstanding
The Federal Reserve Banks report
july % records that the holdings
bankers bills for "the account OF for
eign correspondents" then totaled $48l,
315 900, nearly half of the total out
standing.
, American bankers are watching par
ticularly the Bank for Internations
Settlements, now a big buyer of bill
There are some who believe that,
this bank is intended to be balanc
wheel in international finance, it coul
sell its bankers acceptanceS in "a hour
and cause the Federal Reserve Banks
pick UP these millions at a time whe
it might npt be convenient.
OF course, the Federal Reserve toda
could do it very easily. The Feders
Reserve Banks on July % had NOR
than $500 900 900 of United States Gov
eminent securities, which could be yer
easily disposed of in case the accept
ances owned by foreign banks had
be absorbed quickly.
Nevertheless, the growth in foreig
bill holdings is now of such proportion
that it cannot be ignored and has
be watched carefully.
The two largest buyers in this fiei
are supposed to be the Bank Of Franz
and the Bank of International Set lie
ments.
The comprehensive report of r. N
Sims of the National Association
Supervisors of State Banks. as of Marc
81 last, reflects, las a whole, health
condition of the banking institution
of the country"
At that time, the 24,6l4 individus
banks were divided into 1928 Stat
and 1916 national banks with toJs
capital assets of $9,963, 100000 tots
deposits of S57.446,0 900 and tota
resources of $72,038.000, 900.
The State banks are gaining on t1
national banks. Their capital surplt
600 on March 81 last, while those OF tn
national banks were $3.799, 00e 900.
Thus the State banks havs 81 pc
cent of the capital assets, as agains
SO per cent held by the national bank
Deposits in State banks show u
strong-$35, 805 900 900, as against sal,
$40, 100000 for national bankS-abou
so per cent for the State banks an
40 per cent for the national banks.
The number OF individual banks de
creased from 29,953 in June, 1920, :
24,614 on March 81 last-nearly 20 pc
cent.
Capital assets, in the decade, hav
increased over so per cent; deposit
only 40 per cent, from sal ,000,0 100000
to over $57,446, 900 600; while total as
sets have grown from $4,000, 100000
to over $4,000, OOO, o0o-a SO per GER
increase.
When Paul d. Dickens OF the Depart
ment of Commerce announced this
during the first half of 1880, tots
of $804, $50, 20l of foreign financing wa
completed in the United States, 1t wa
a surprise to most bankers. It's nearl
500, 100000 more than for the cor
responding period of last year.
Should this rate continue, the all
time record Of 1927, when foreig
financing reached 1882, sos, 900, will b
broken.
Leaving out of account the refund
ing obligations of about $232,000,0 0t
the new foreign financing for the frs
quarter amounted to $232, 623, 900 an
the second quarter TO $427 ,339 900.
Government issues were favored, wit
total of 1894 ,025, 900, as against $72.
1854, 900 in the corporate field.
But the surprising thing is that Lati
America stands at the top of the lis
as the heaviest borrower with IL issue
aggregating $142,363. 900. Europe take
second place with five issues totalin
$125, 100000, followed by Canada
third place with 20 issues, $l04, 872. 500
then the Far East with three issue
totaling $62,500,000, and the rest scat
tered.
Truly a remarkable record!
tCopyright, 1890. by North American News
paper Alliance.)