Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-05
GAIN IN BUSINESS
ACTIVITY IS NOTED
Good Weather and Easy
Credit Aid in UpsWing
of Industry.
BY JOHN F. SINCLAIR.

NEW YORK, April 5.-Good weather
and easy credit conditions are respon-
sible for the increased business activity
which is showing itself in many parts
of the United States.
With the Federal Reserve Bank OF
New York operating on 312 per cent
rate, the same as the Bank of England,
compared with per cent in New York
and 6Ia per cent in London last Fall, the
rates IN other countries are being al
fected by easier money. The RelchS-
banks rate has moved down from 7l2 TO
5 per cent, while the Central Banks of
Holland and France, both money ceE-
tiers, are even lower than those of the
United States and England-a fiat 3
per cent. !
There are some who believe that the
rates quoted in the United States by the
Federal Reserve are too low, and that
the New York rate may move up rather
vigorously in the next few weeks.
Both the English pound and the
French franc have been very strong
since the New York rates were dropped.
French and English banks and business
firms have been withdrawing large sums
of money from the United States, be-
cause they are not able to do any better
they are in Lon,..l or Paris.
On the other haI.,., .lere has been q
considerable amount of foreign money
sent to New York banks in the last
fortnight, some of it presumably Tor
stock market operation.
Certainly investment trusts and for
eign buying have been the two bullish
factors in the market since the impress
sive stock advance began two weeks ago.
Tl,,, 81, u 1n
York Stock Exchange continue. Yes
terday's record of $4,000 was the
heaviest turnover for 1880. The stand
ard stocks like American Can, United
States Steel common, International
Telephone 81 Telegraph. General Elec-
trio and Radio, all moved up vigorously
on trading in big blocks.
The public may not be buying so
much, but some large investment groups
especially investment trusts, who
have been waiting for months on the
enthusiastically have decided that
the time to buy has arrived.
Automobile production is on the in
crease. Although the 100000 cars
cent below the figures for March, 1929,
they represent an increase of 18 per
cent over the figures for February.
The National Automobile Chamber of
Commerce, whose duty 1T is to keep
close finger on the pulse of the auto
industry, favors flexible provision in
the tariff regulating importation OF for
eign made cars. Through Its newly
elected president, Robert w. Woodruff,
president of the White Motor Car Co.,
the chamber states:
These provisions are an essential
factor in the world tariff condition con-
fronting all engaged in export trade:
The chamber presents very sensible
viewpoint, How can American eX-
porters hope to cope with situations
arising in other countries when excess
sive tariffs irritate the manufacturers
in these countries against tariff Sltua-
tions here. The chamber wants proVi-
sions for changes necessarily pertinent
to the welfare of auto manufacturers
sales in other countries.
In other words, the chamber wants
effective tariff revisions when needed,
whether Congress is in session or not
The United States exports for 1929
reached S5,241 100000 gaining $113,-
100000 over 1928, and establishing
new record.
Imports. on the other hand showed
even a greater increase, 100000, 900
greater than the preceding year, the
balance of trade being $841 100000 in
favor of the United States for 1929 as
compared with ST 037 100000 for 1928.
Analysing the figures, the real rea-
son for the export expansion centered
in the development of finished manu-
still held first place in value, machinery
and electrical apparatus. automotive
products, and gasoline followed in the
order named.
The import growth came from the
larger purchases of raw materials and
northumberland products for our
factories. But there was also a large
increase in the value of imports In fin
ished articles.
OF course these figures do not include
interest on American debts held abroad.
Nor other invisible items, such as tour
ist expenditures and money sent to for
eign countries for other purposes than
the purchase of goods.
Representative Francis Seiberling of
Ohio has joined with Representative La
Guardia of New York in protest to At
torney General Mitchell against the pro-
posed Bethlehem Youngstown merger.
In letter to the Attorney General
Mr.. Seiberling calls upon the Depart
ment of Justice to make an investiga-
ton to protect properly the interests
OF our people"
Mr.. La Guardia's resolution, already
ultAOuuCSu dIlu CdlllIlS upOIl IIlS AGlOL"
ney General to stop the merger, charges
"a subtle plan backed by the United
States Steel Corporation to create an
American steel trust"
Mr.. Seiberling's letter says that
"Ohioans are proud of the successful
and independent industries developed
among Them" and that the merger of
these industries with great Eastern cor
porations will have the effect of making
their cities mere mill towns"
Charges that the merger is being
forced through purchases of large blocks
of stock and that promoters of the
merger are determined to consummate
it at any cost, irrespective of its legality
or the effect upon the people of North
ern Ohio" are also included in Mr..
Seiberling's letter.
In some quarters it is said that many
Youngstown stockholders are opposing
the merger, fearing reprisals on the part
of United States Steel Corporation, and
the reduction of 81 ton in the price of
pipe by a subsidiary of that corpora
ton, the National Tube Co., is regarded
by the opponents to the merger as a
warning against it.
When the steel industry starts fight
ing sparks fly. Next Tuesday, the battle
of ballots will begin.
(Copyright, 1890, by North American News