Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-06-20
AID SEEN
IN CHEAPER MONEY
Falling Commodity Prices Are
Declared Obstacle to
Trade Recovery.
BY JOHN F. SINCLAIR.

York Federal Reserve Bank from to
..-S...-2l2 per cent registered two favorable
business signs yesterday.
",e- After a week of violent declines, the
market in turnover of 3,75O,o0O shares
j., g. saw prices rise from to IL points.
.s Short covering had a lot to do with
= the recovery, but prices maintained
their strength well to the end of the
.,r,t session.
The dropping of the discount rate
in New York for the sixth successive
,ac time since the stock market break last
- october brings the rate down to the
ssolowest level since the Federal Reserve
% Bank began, Is years ago.
. The New York rate now is the same
"o as that of the Bank of France and
= half a point lower than the Bank of
bel England. The English rate is likely
- to follow suit and cut from 8 per cent
80 to the 2l2 per cent.
a. Money. too-the quick-turn CONNER
= cal kinds going begging. CONNER
a. cial paper has been selling from to
80 per cent and call money rules at
2l1 per cent on the Stock Exchange,
with plenty of it available outside at
80 per cent.
s.... Cheap money is an important factor
81" in bringing back prosperity. But 1t Is
other factors-Such as the falling world
> price level-that are holding back trade
recovery at this time.
William A. Jones, high executive Of
- the Henry L. Doherty Co. and the Cities
-,t. Service Co, scheduled to be the next
- president of the National Electric Light
Association, told the annual light ana
irn power convention in San Francisco that
there are as many automobiles owned In
"a. the United States as there are light and
T0~poWer customers Recent figures 1nol-
- cate that it costs about $3.50 a year to
ava maintain a small, popular automobile
- Mr. Jones said this represents six
Il. times the amount that the average fam
&c lily pays for light and power and we
- must conclude that the American fam
= lily can afford to use much more of our
service than 1t now takes, If we can but
show the added benefits and the COM
." forts which will come through wider
~ use"
no Mr.. Jones also told the convention
that "a per cent of his domestic Gus
toners now own electric irons, A per
cent own vacuum cleaners, 80 per cent
own washing machines, and only 4.5
own electric ranges and "a own domes-
-t tic electrical refrigerators. No satura-
ton point in sight here.
- Often it is said that a successful
p leader knows early in life just what he
j., wants to do. But William A. Jones had
no such premonition. Born on Mis-
81. souri, farm 80 years ago, he did odd
Q er Jobs to get schooling, carried papers,
:" drove delivery wagon for a soda water
loafactory, and worked in a grocery store
catering to an Italian construction gang
/. r laying the first natural gas pipe line,
r7 which carried gas to Southwest Missouri
from Kansas
: - Recently asked whether the young
- man today has as much chance as he
an, did Is or 20 years ago in business, Mr..
e Jones replied:
ANY young man in a large organiZa-
tuition who is willing to pay the price in
> personal sacrifice, who Is willing to
=. subordinate everything to his work, has
- thrown at him or can make for himself
all the opportunities he can prove capa-
bic of handling. Usually there are re-
sponsible jobs going abegging because
grf men are not willing to sweat enough to
master the problems involved"
= Now, Mr.. Jones is the active head of
-p~130 utility and oil companies and rarely
takes day of, even for golf or riding,
~ his favorite recreations.
Gov Roy A. Young Of the Federal
o. Reserve Board championed trade area
branch banking before the Minnesota
Bankers Association.
The governor said that 80 per cent
of the 5000 banks which failed during
the nine years prior to June 80, 1929.
had less than 100000 capital each, and
as result of this condition. while adj
uniting that experience with group
banking so far has been too limited
to permit us to be dogmatic,'' he favors
the Pole plan of extension of branch
banking within certain definite trading
- zones.
!, Il think that the logic of events forces
~ us to conclude that branch banking
within limited area is a reasonable con-
81, cession to make to the present-day con-
- ditlons which must be met" the gov
ernor said in his address. Beyond this
limited concession ! preserve an open
mind in the hope that a timely ex-
perience will help us develop the right
"a kind Of banking system for our chang
ing economic world"
Do The difficulty in the matter, Gov.
Young thinks, Is in defining the def
30 mite trade areas. None of us as yet
10 has been able to do So" he said.
nv In this column quite recently the
question of whether any executive is
worth 81 100000 year in salary to any
49, corporation was discussed. opinions
differed as was to be expected. But
,. what about million-dollar fees?
-, This week two fee contest cases have
appeared in the business world. Dis
-, putes as to the value of the services
rendered have brought them into public
attention.
William Van Allen, architect of the
new S14,000,000 Chrysler building in
~ New York, is demanding for his services
6 per cent fee ($865, 000) on the total
49, cost of this new History Skyscraper
! =. This charges per CENTS that estab-
lished by the American Institute OF
l"~ Architects, although many architects
charge as high as 10 per cent of the
total cost.
- Mr.. Chrysler. believing such fee toe
large. offered SITS, 000-or a little over
/ per cent. But how much is such serv.
ices worth?
Another case is that of Wayne John.
son, former solicitor of the United
- States Internal Revenue Department
who claims a fee of $1,000, 900 for oh.
tanning an income tax refund of S33,.
100000 for the United States Steel Cor.
poration.
Was it worth $4,000, 900 to the United
States Steel Co. to secure a refund OF
- its income tax Of S33, 900 900 from thu
United States Government? This is tn,
- question. The late Judge Gary ther
chairman, was to determine the fee o
~ Mr.. johnson. But the judges deatF
=. held the matter up.
sa,,- Today mtllion-dOllar fee is not un
usual, and scores of them are con
-. tracted and paid every year in the bust
= 90 ness world.
r CcopyriEnt, 1880. by North American News
- r=per Al'lanceD
INVESTMENT TRUSTS
NEW YORK, June 20 CP).-Over tn
-1.S counter market:
G. Az =. s.,. Bid. Aske!