Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-07
CREDIT CHEAPER
IN WORLD CENTERS
Action of New York Reserve
Bank Taken as Bust
ness Aid.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, February Mooney is
getting cheaper, if central bank rates
are any indication.
When the Federal Reserve Bank OF
New York reduced its rediscount rate
from Az to per cent yesterday after
noon, it quickly followed the morning
announcement of the reduction of the
rate of the Bank of England from 5
per cent to Az per cent.
Last W ok the Bank of France re-
duced its rediscount rate from 3la per
cent to 3 per cent, and it was followed
by the German Reichsbank, which re-
duced its rate from 6l, to per cent.
So New York, the money center, again
leads the way in reducing rates in the
United States-the only Federal Re-
serve now having a 4 per cent rediS-
count rate.
Six Federal Reserve Banks maintain
a Az per cent rate-Boston, Philadel-
phia, Atlanta, Chicago. Kansas City and
san Francisco; San Francisco and Kan
sas City both having reduced rates in
December.
The other Federal Reserve Banks
which still maintain the per cent re-
discount rate are those in Cleveland
Richmond. St. Louis, Minneapolis and
Dallas.
The Federal Reserve policy is CO.
operating at the moment in bringing to
the country cheaper money and plenty
of it. The New York rate change
should and will have definite and
favorable effect on business conditions.
World Price Con.yoi
The Royal Bank of Canada. with as
sets totaling billion dollars, urges CO.
operation among the central banks of
issue to control world prices.
1T should be possible within narrow
limits to prevent either a rise in the
fall in the price level; or decline in
the value of gold, which is an advance
in prices" says the Royal Bank.
Intelligent control of the worlds sup
ply of gold does present difficulties
One is the reluctance of any country
to part with its gold reserve, once ac-
cumulated, even though it may be much
greater than required by the business OF
the country"
Spain and Argentine are two present
examples of this.
For thousands of years the demand
for gold has had a definite effect on
prices. However, the consensus seems to
be that there is plenty of gold in the
world. if the central banks of issue will
handle the problem as frankly and in
diligently as other business problems
are handled.
Opportunities in Canada.
THE fastest thinker in Canada" is
what William w. Evans, chairman of
the Canadian General Securities, Linn
tied, of Toronto, has often been called
by fellow Canadians.
This youthful financier was born in
fINn1 Ia t0Tr 81 roy0 to
Ontario, 80 years ago. After gradual
ing from both the University of To-
ronto and Osgoode Hall, he entered
the legal department of the Canadian
National Railway in 1914 and was made
western solicitor, with headquarters in
Winnipeg, at the age of 20. Two years
later he resigned returned to Toronto
and entered the investment banking
field
1T would be foolish to say that Ca
madam business has not been affected
by the stock market drop of last Fall
and by the difficulties which the Stand
ard Mining Exchange in Toronto has
experienced in recent weeks" said Mr.
Evans. But one must never forget, in
speaking of Canadian conditions, that
we are now at the same period in the
development of our natural resources
that the United States was Immediately |
after the Civil War. American business |
leaders looking for new fields could do |
no better than pay Canada a visit now
and study over opportunities at first
hand"
And that's just what many Ameri- |
cans are doing this Winter.
Foreign Auto Exports.
A pan-European combination, COM
prising Germany, France, Italy, Aus
tria, Belgium and CZechoSlovakia, to fix /
a definite quota of American cars for |
each country, beyond which no more |
will be allowed, is not beyond the realm |
of possibility. American manufacturers |
are thoroughly alive to the situation.
Exports of automotive products from |
the United States in 1929 reached the |
impressive total of $3.50 1853 900. Eight |
years earlier-in 1921-their total value |
was but So, 900 900. So the importance |
Of exports to this industry is evident
But Europe, III 1929. was not the |
biggest auto market. Canada, Argen- |
tina and Australia were the chief mar !
kets for passenger cars, with the South |
American countries making large gains. |
Automotive rubber goods exported |
came to S43000,000 in 1929. That |
there was only slight increase over |
1928 was due largely to the building |
of factories Of American companies in /
Canada, United Kingdom, France, Ger |
many, Australia and other foreign ccun- |
tries. This movement, already Signifl- |
cant. is gaining in momentum and i'm |
portance every year.
Farm Wages.
Farm wages-the lowest paid in |
United States
While they increased during the first |
10 months of last year, they declined |
from October last to January l SUBJ |
stantially, says the United States De- |
partment of Agriculture.
If we figure the 1910-1914 pre-war |
wage level as 100. we find that the index |
162 one year ago in the same month.
wages per month. with board, for the |
United States were placed at $3229 |
on January !, compared with S3304 |
on January /, 1928: wages per month |
without board, $46.80 as compared |
with $47.20 a year before.
The farm hand working by the day |
was getting an average of Sl73 on |
January I, last, as against S1.78 the |
year previous, while wages without !
board were S2.27, compared with S234
January /. 1929.
The highest monthly wages paid are
on farms in the Far Western States;
the lowest in the South Atlantic States. |
Any way it is figured, farm wages, |
rejecting farm conditions. are very low
(Copyright, 1890, by North American News
paper Alliance1