Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-21

for the price condition affecting both
cotton and wheat. More than half of
all American cotton is consumed abroad,
and while the proportion of American
wheat so consumed Is much smaller
the influence IL has on price fiuctua-
tons Is decisive. 1t is the paradox
confronting the grain markets that
European taking of breadstufs from
North America out of the 1929 crop
is 200. 900 900 bushels or more less than
normal this year.
France is one of those countries to
which expenditures OF American tour
lists and remittanceS from American
bankers are more important economical
" than the regularly studied exchanges
OF commodities between the two coun-
tries. DR.. Julius Klein, Assistant Secre-
tary Of Commerce. worked out some
concrete representations of the state
Of affairs today in the course OF an
address made to the French Chamber
OF Commerce in New York City.
For example. our purchases of mer-
chandiSe from France in 1928 totaled
nearly Sl5s, 600. 000," DR.. Klein observed.
But the purchases made by our tour
lists of French services in 1928 totaled
nearly $4,000 900" DR.. Klein OBJ
served But the purchases made by
our tourists of French services and
goods were estimated at $2l5000, 900
that year These we're, of course, all
on a retail footing with the correspond
ing additional profits to distributors.
Though our tourist expenditures IN 1929
in France probably declined by some
$40 900 900, or about 20 per cent, the
decrease was still not sufhcient to bring
the total of this volume of retail trans
actions below the purchase OF imported
French goods at wholesale by American
friends The net balance of trade was
for 1929 very favorable to our French
friends
Another item in this same category
is the large and steadily growing French
total of investments in the United
States Long-term holdings of this
sort probably amount to $500.000,0 900,
and the amount of French capital en-
gaded in short-term investments in the
United States is about as much more.
AS to the commodity trade between
the United States and France, DR.. Klein
added, it remains amazingly stable
over years of comparison. He eStl-
mated that in 1929 the United States
bought per cent of all French ex-
ports. as compared with 81 per cent
bought In 1918; and that American ex-
ports made up 10.7 per cent of French
BS-
cent in 1929. Tourist expenditure and
investment earnings. he demonstrated
altered much more the balance OF trade
between the two nations than did the
merchandise exchange.
Federal Trade Commission efforts to
lay bare and analyze the financial
structure and management methods OF
a typical holding company of impor-
lance in the utility field will come to a
head next Monday at public hearings
in Washington. The enterprise selected
for first treatment is the American Gas
main units of the Electric Bond &
Share Corporation, which last named
entity is probably the most important
centralized unit in the utility field at
home or abroad.
1t is nearly a year since accountants
and agents of the commission began
field work on the American company
and undertook the compilation of Sc
curities issued by it and its 10 sub
sidiary operating corporations, which
distribute light and power through nine
States. Several characteristic applica-
tons of the discussed manage
ment contract" in the American COM
pany organizations will be brought up
for discussion.
While the form and terms of man
agement contracts differ, they are gen.
orally understood to incorporate ar
rangementS by which the subsidiary
operating corporation pays TO its hold
ing company amounts ranging from ?
to 10 per cent of annual gross earn
ings. In return for this it obtains
various services, financial aid and man.
agement. The terms of these arrange
ments represent one of the important