Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-04
DECREASE IN BANK
DEPOSITS IS NOTED
Money Rates Are Cheap All
Over WorId-Wheat Gain
Aids Stocks.
BY JOHN F. SINCLAIR.

NEW YORK, April 4.-baHk deposits
are slightly of from their December
totals, according to the reports Of two
New York leading organizations issued
on March 81. The National CITY Bank
shows a drop of $4,000, 900, with total
deposits of $1,471 100000. and the
Guaranty Trust Co. decline of $175,-
100000, with total deposits of $l,l33,-
100000.
But money is plentiful and cheap.
While the official rate on call money
yesterday was per cent, many conces-
SionS to 312 per cent were made in re-
newals. Central bank rates continued
to drop in other parts Of the world. Yes
terday the Bank of Switzerland reduced
its rediscount rate from 31z to 3 per
cent and the Bank of India reduced
from 2 per cent to 6 per cent.
While no change took place in the
Bank Of England rate, which remained
at 81 per cent, reports from London
indicate that easier money is having Its
effect in improved business conditions.
Yesterdays stock market activity at
the close was helped by the spectacular
rise in wheat for a gain of 4 cents a
bllShel on improved foreign demand and
various reports of crop damage by
drought.
Despite the cry Of bad farm prices,
farmers are going ahead.
In every product other than durum
wheat, peanuts and hay American farm
ers have signif1ed their intentions to
plant larger acreage. Fifty thousand
farmers told the Economics Bureau of
the Department of Agriculture that 1880
would see an increase in acreage Of 2
per cent over 1929.
The bureau is inclined to view the
matter conservatively, making allow
IlnfQV0FQhln =
ing time, droughts and floods. But even
that doesn't check the enthusiasm of the
'intend-to-plant" reports.
The Federal Farm Board battle to
restrict production in the staple lines
especially wheat and cotton acreage
may yet succeed. But so far it has
made little impression on the farmers,
Paul M. Mazur, New York investment
banker, in a recent book, America
Looks Abroad" tries to answer the
question of how the United States may
continue to collect $1,000, 900 900 OF
annual interest on foreign loans and
export balance of about the same
amount.
After analysing the pros and cons of
the whole situation, he comes to the
conclusion that the thing is impossible
and concludes that it is "the most seri-
Gus threat to Americas standard Of
living and economic program that the
future holds"
Only the other day, Owen Young
talked in the same vein, when he
declared that the living standards of
America could not be permanently
maintained at measurably higher level
than those of other civilized countries
Either we shall life theirs to ours, or
they will drag ours down to theirs, u
was his conclusion.
The present time is SOLDERING, think
ing, rejecting time. Business men are
reading everything dealing with foreign
trade.
But perhaps in the next few years
world trade will expand to two or three
times its present volume. If so, the
present problem Of debts and credits
will be comparatively small one.
But no American can, with safety
conduct his business in a complacent
manner in an era which has forced the
United States into the position of the
worlds greatest creditor.
Redfield Proctor, president of the New
England Council, in discussing the
future of transportation facilities in
that section Of the country says that
the control Of the railroads there by
New Englanders has been steadily
diminishing.
New England, an important manu-
featuring center of the United States.
must rely largely on railroads. Much
raw material is shipped in, manu-
featured into the finished product and
then shipped out.
So the railroads continue to be the
greatest carriers of merchandise, raw or
manufactured. If fewer and fewer New
Englanders are interested financially in
the railroad systems which traverse
their territory, then indefinite reten-
ton of the status quo among New
England railroads is the least likely of
Gil the possibilities m the situation.
This Is the view Of President Proctor.
New EnglanderS, too, will try to find
Got who owns their railroads.
Business cannot permanently improve
until the commodity price level becomes
more stabilized.
Bradstreet's April 1 index of COM
modify prices indicates that perhaps
che worst is over in the commodity
situation. Commodity prices dropped
AArch. But up to March the decline
was rat rapid.
Durins the last four and one-half
years commodity prices have lost IS
per cent Of what they added in the
previous four and one-half years.
Today commodity prices are almost
back to the level reached in June,
1921. Bradstreet's index of SO articles
shows that from the low of 1921,
reached in June, to the high of 1925,
reached in December, this index moved
up from $10.616 to $l44O5.
Then the long drop began. The last
-FOUR years showed that up to April l
last, the index had dropped to $il.1s3
It moved up during the 1925 period
by 3.78. The last four years, it moved
down $3.22-thus losing IS per cent OF
the earlier gain.
There are many who believe the
March lows will be the record and
that another long upward swing is
about to begin.
copyright, 1880, by North American News.
paper Alliance