Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-27
PREPARATIONS LOAN
PROSPECTS BRIGHT
Bankers Expect Forthcoming
Issue viii Be Greatly
0verSubScribed.
BY JOHN F. SINCLAIR.

BY JOHN F. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, May 27.-Business mer
pretty generally are saying:
Lets get the reparation bond issue
out of the way as soon as possible Sc
that an opportunity can be had fol
regular business to expand and de-
velop.'
why is the bond market hesitating;
Money is cheap-cheaper than 1t has
been in years. Banks are full of 1t
unable to loan it at profitable rates.
Unless new complications arise at
the bankers meeting In Paris, next
Monday, June 2, is the day when the
full details as to the reparation issue
are expected to be announced. These
bonds are to carry 5 II per cent cou-
pom, with principal amortiZed In IS
years, and sold to net the investor
around 6 per cent, although the exact
rate to the purchaser has not yet been
determined.
In nine different nations the issue
will be offered simultaneously, with the
United States taking about $50, 200, 900
Of the total of $300,000,0 900.
Yes, it will be greatly overSubScribed,
not only in the United States, but in
most of the other money centers.
But the bond market, in the mean
time, is waiting for the job to be COM
pleted. Investment bankers will be
glad when this issue is out of the way.
The opinion of Benjamin M. Ander-
son, jr., Chase National Bank economist,
who opposes any extension of branch
banking in the United States, is chal-
lenged by Lyman E. Wakefield, presi-
dent of the First National Bank of
Minneapolis and vice president of the
l. snf-
controls many banks throughout the
ninth Federal Reserve district.
After explaining that experience In
the Northwest showed plainly that there
are many small towns and villages not
able to support q unit bank where q
branch bank can meet the situation,
Mr.. Wakefield says:
New York's domination Of American
banking rests to a certain degree on
the correspondent system, which Mr..
Anderson advocates as the perfectly
adequate relationship of the large and
small banks. The trade area branch
system, the regional group plan or the
combined group and radial branch pro-
posal would promote greater financial
independence of the trade areas or
group regions.
"Mr. Anderson places considerable
stress on the point that q small bank
in one-crop community can attain the
needed diverSif1cation through resort to
the open market and call loans on the
New York Stock Exchange. That is
perfectly true, but, pursued to its ulti-
mate conclusion, 1t means the continued
drawing away of a community's accu-
mulated capital. A diversiflcation of
area, of risk and resource, which would
permit region to retain its capital
safely within its borders appeals to me
Is the better way"
The battle lines are forming!
Safety is, after all, the real challenge
This is the conclusion of Prof. Edison
J.. Bowers of Ohio University in his
new book, Does 1t Pay to Work."
It Is study dealing with industrial
accidents, In which Prof. Bowers insists
that at time when production is in
creasing by leaps and bounds and prac-
tical efficiency Is almost q religion in
business, the cause of safety is much
slighted and ignored.
After going into the facts showing
that more workers are injured and
killed in the workshops in America than
there were killed in war and that
workers are safer in the war trench
than in the modern factory, he quotes
figures to show that rs per cent or
more Of all the accidents could be
avoided.
Working mems compensation insur-
ance has been developed primarily to
pay injury benefits, rather than to pre-
vent accidents" says Prof. Bowers. ZAP
parently there Is no relationship be-
tween such seemingly diverse things as
safety guards and insurance premiums
or weekly benefits and classes in book
keeping"
ExorfIv Thosa v,L1o baya oors;SarnS
the problem so far have not seriously
dug into production costs. But they
will-ultimately Prevention, compen-
sation and profits must be viewed as re-
lated parts of one comprehensive whole
eff more and more goods, in an I'M
ending variety, are produced and en-
toyed, then those who are responsible
for the producing should be held ac-
countable for safety and those who
use the goods should pay the cost"
are his concluding words.
The political and financial leaders
Of both Austria and Hungary have been
visiting Paris and London and New
York lately in the hope that each Of
these countries will be able to float q
substantial foreign loan to carry on
on the borrowed money.
Neither country has recupera, ID since
the war. Both are hard-up today and
unemployment has been growing stead
ny for 1s months in both places.
Hungary, its farmers largely inter-
ested in wheat and wine, has suffered
untold disaster in the low prices. Buda-
pest and Vienna daily report new bank
ruptcies and many suicides.
The League Of Nations helped Aus
tria once, but she is no longer able
to finance herself out of income. The
same goes for Hungary.
Chancellor Schober of Austria, for
mer Vienna chief of police, has lately
visited several European capitals for
the sole purpose Of arranging a new
loan.
When the peace treaty divided Aus
trta and Hungary into several eco
nonic parts, the conferees probably
did not realize what they were dnina