Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-11

IAiuS NuA John Is, Iarnefs
tailment for vaca-
tions and inventories should be some
what more marked this year than
usual.
Corporate earnings for the first half
year are admittedly unfaVorable. out
no more than generally anticipated,
and they will soon be history. The
present part-time schedules of produc-
ton are little out of the ordinary for
the hot-weather season in good years
and bad. The concurrent lowering OF
the commodity price level and the
working down of excess merchandise
stocks is creating a strong statistical
position in a host of industries.
Apparently a great deal OF the I'M
certainty expressed this year has been
caused by the business and investing
public having overlooked two of the
strongest elements in business today.
"One is the lquidity of the American
banking system, whose central banks
still hold more than $4,000, 600 600 OF
gold and have made net gain of $780,
100000 in the first seven month OF
the current year, despite heavy gold
exports recently. Member banks are
owing less to the reserve banks than
at any time since 1917. A piling up of
deposits has driven commercial paper
down to and 8 a per cent. and bank
ers' acceptances to rs per cent, and
has turned a huge flow of fund into
the investment market that has raised
United States bonds still further above
par and absorbed $3.50, 600, 900 in fixed
term issues at advancing quotations
"A second element is the strong
financial position of American business
corporations, not only of the gigantic
consultations such as make profits of
$4,000, 900 year and upward, of
which there were no less than 1T in
1929. but also of several thousand
smaller companies engaged in all the
various industries and scattered in
every section of the country. One
cannot fail to be impressed with the
manner in which these companies, with
rare exceptions, have during recent
years, built up their surplus accounts
increased their capital stocks, written
down property valuations and liquidat-
ed indebtedness"
New Treasury Financing.
The Treasury is out with its latest
financing an offer of about $3.50, eco
Treasury bills, which are to be sold on
discount to the highest bidder. Bids
will be opened next Thursday at the
Federal Reserve Banks, or branches,
up to 2 O'Clock, but will not be re-
ceived at the Treasury here.
The new bills will be dated August
Is, 1880. and will mature on November
II, 1890, and on the maturity date the
face amount will be payable without
interest They wiz be issued in bearer
form only. and in amounts or denomi-
nations of 1000, $4,000 and 100000
maturity value.
No offer for less than 81 900 will be
considered The returns derived from
sale of these bills will be used to run
the Government until September in
come taxes.
Larner Returns.
John B. Larner, president of the
Washington Loan & Trust Co., re-
turned to his desk today after an ex-
tended motor trip through New Eng
land with Mrs. Larner and their daugh-
ter Anna.
John j. O'Connor, manager of the
finance department of the Chamber of
Commerce of the United States, Will
be one of the speakers at the convention
of the Mortgage Bankers Association of
America, to be held at Detroit, Septem-
Der is to l3. He will discuss Mort
gage Finance and General Business"
The general topic of discussion at the
convention will be financing of home
ownership. Five hundred delegates
from 40 States are expected to attend /
the meeting, of which the keynote will
be Management: the Responsibility of
the Mortgage Bankers in the New
Decade"
Income Reported.
Net income of the 275 industrial,
utility and railroad corporations for
which comparative data are available
for the first six months of 1928, 1929
and 1890, in the latter period was 50
per cent Of that for the first half of
1928. according to the Standard Stats
tics Co. of New York.
Tpcor1a for the first half nf 1000 in
the case of these 275 corporations was
129 per cent of the 1928 figures. Split
ting up the whole into three groups,
industrial, utility and railroad, the
utility and railroad, the utility claSsifl-
cation was the only one to show a gain
in 1880 over 1928. 1t was also the
only one of the three groups to ap-
proximate the 1929 totals in 1880.
In line with the movement now under
way in France to retire loans fioated in
the United States, the Est Railroad Co
of France, which sold a $4,000 600 Z
per cent bond issue here in 1925
through Dillon. Read & Co, announces
today that it has elected TO redeem on
November !, the outstanding portion of
this issue, amounting to Sl8,663 900. The
issue which consists of Z per cent ex-
ternal sinking fund gold bonds would
not normally mature until November
/, 1854.
In making the announcement of the
redemption Dillon, Read g. Co, fiscal
agent for the company in the United
States, state that payment vii be made
at los and interest accrued to Novem-
Der !. at their principal office in New
York City.
Market Values Decrease.
Market value of so representative
stocks on the New York Stock Exchange
at the close of the week ended Satur-
day, August 8, 1880. was S23 ,287 ,095,-
885, decrease of 81, 062, 776, 1872 or APP
proximately 436 per cent. under the
value of $24 349 .872, OPT at the close OF
the preceding week, according to COM
pilation by Mcclure, Jones g. Co, men,
bers of the exchange
This compares with $42 3l8 148.640
the value of the shares at tha close of
the corresponding day in 1929.
Trading was quiet on the Washing
ton Stock Exchange. with heaviest
transactions in Capital Traction SIS,
which sold at 1894. Washington Gas
3 IS B went at l04, while the same COM
pany's Is A changed hands at l02 y.
Capital Traction stock was on rising
market from "a to 64t2.
Mergenthaler sold in one block of
seven shares at 81. Washington Me-
chanics Mortgage common was in de-
mand. with several small blocks going
at 9 to 5ia.
Ernest Gerstenberg, vice president of
the Merchants Bank e. Trust Co.. in
charge of the branch at Twentieth
street and Pennsylvania avenue, is on
vacation in New Jersey. F. E. Ghiselli
is In charge of the branch during his
absence.
w w. SDaid of w. b. IIibbs a. Co.