Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-02
.HYSTER|A BLAMED
FOR MARKET ILLS.
Apprehension Exceeds Any
Panic State of Other Years,
Veteran Says.
BY JOHN F. SINCLAIR.

BY JOHN Z. SINCLAIR.
Walter w. Price. wise and experienced
| senior partner of Livingston 81 Co, oil
| New York, has never seen state OF
mind as "hysterical and apprehensive
as that which exists at the present
times
Reminiscing the other day this Wall
Street leader said he had gone through
the dull periods of 1893 to 1898, and
the panics of 1901, 1907, 1909, 1914
1920 and the crash of 1929.
Il saw Union Pacific in 1897 worth
nothing, and assessed for SIS share,
said MIR. Price. Il saw Atchison Rail
road sold under foreclosure in 1895.
witnessed the supply of gold in the
United States Treasury sink below
$50, 00o, 900, and through the direction
of Grover Cleveland with the aid of
]. p. Morgan, replenished by the pur-
chase of gold in Europe to the extent OF
500, 000, 900, paid for in 4 per cent
United States bonds at par without
commission.
And yet through all these times, ]
never witnessed state of mind as alb
surdly exaggerated as that which exists
at the present moment"
1t was Anatole France, penetrating
French writer who wrote:
1T has always been mans destiny
to fall into contrary excesses, and the
recovery from those excuses is always
labored and prostrating.
Labored and prostrating! History
has a way of repeating itself.
F.. ]. Lisman. the New York banker,
doesn't think much of the term easy
money" It's wrong use of words, be-
cause easy money" is the hardest to
get. 1t should be called low interest
money"
Two years ago, any one DESTROYS of
erecting a new building in the business
section of any large community, as for
example, the Grand Central zone of
New York, could have obtained loan
of 10 per cent of the cost of the prop
erty, plus the expected cost Of the build
ing, with practically no further explain
alton or security beyond the surety
bond, guaranteeing completion.
But today let the same borrower try
to secure a similar loan! He may Sc
cure one, IL he can show a contract
from a big responsible tenant for a
large amount of the space, or If as
sured that the owners are prepared to
pay taxes. interest and other charges
during the early period, without rely
ing on the buildings income.
Says Mr.. Lisman: Outstanding loans
or bonds, generally looked upon until
lately as quite safe, are now treated
with more or less exaggerated skep-
ticism It's the old story of the dough-
nut-lost year the lender saw only the
dough; now he sees only the hole"
In a word, there's plenty of money
available at record low rates for quick
turn, amply secured, like brokers loans,
at rates from 112 to 2 per cent. But
there is not yet available any great
amount of money for capital invest
ment, like building construction, etc,
at reasonable rates. It's coming, for
money cannot lie idle In the banks in
definitely. But that time has not yet
arrived.
Speaking of mortgage money, the Ma
tional Association of Real Estate Boards
in a survey based on reports from
428 local real estate boards, represent
ing the principal cities of the United
States and Canada, reports an improve
ment in the supply of capital available
for real estate loans.
Thirty per cent of the cities repre-
sent a norm" between supply and
demand Of credit. In real estate
mortgage loans and capital. AZ per
cent report that desirable loans are
seeking capital and % per cent report
that mortgage money is seeking loans
Six months ago, real estate loans
were seeking capital in So per cent OF
the cities: 10 per cent reported sur
plus of capital seeking investment and
% per cent reported a norm between
supply and demand.
1T is mortgage money, quickly avail
able and In abundance, that Is of til
greatest help to the building industry"
one construction builder said to me.
a. T. e.
we look to see good business in the
Fall
While Americans and Canadians
have gone wild over radio and have
Duilt up an industry, which has sold
radio merchandise exceeding $4,000 :
100000 to the American people in the
last 10 years, Europeans are largely in
the photograph stage"
One of Germany's growing exports
| today is the sale of Photographs. It
accounted for IA per cent of her musical
instrument export in 1929, or Is per
cent greater than In the year preceding
While the United States was the
largest and most important market for
German musical instruments, taking 81
per cent of the total, the export of
German monographs and records to
the United States was small To Great
Britain, Germany sent pianos, guitars
Harps mandolinS and accordians in a
| decreasing amount, but her export of
monographs to the British Isles showed
a big increase.
But the Far East-China, India and
Japan-are big buyers of British, French
and German monographs and phono-
graph records these days.
The Weather Bureau is to give out
more frequent and regular reports over
the entire $4,000 miles of airWays used
daily In the United States
Teletype lines will provide 24-hour
communication, with exchange of re-
ports once each hour for 5000 miles
Of the total. The remaining 5000 miles
will be served by reports transmitted by
telephone or telegraph and at such in
terValS as will best meet current needs.
Scattered throughout the United
States are ITO reporting stations, which
transmit the weather findings to the
major centers and from there broad
cast to the aircraft in flight through a
rapidly expanding network of radio sta
tions maintained by the Department of
Commerce.
This year the total Weather Bureaus
appropriation for all phases of its air
ways forecast and study amounts to
81 100000.
While many people yet hesitate to fly.
the Government and business are striv-
ing in every way to make flying safer