Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-03
BANK CONFERENCE
WATCHED CLOSELY
Meeting in London May
Cause Changes in Finan-
CiaI Situation.
BY JOHN F. SINCLAIR.


Special Dispatch to The Star.
NEW YORK, November 3.-As was
predicted in this column october %, the
proposed New York conference of the
central bank leaders of the world has
been called off So many complications
arose it was decided to hold the meet
ing in Europe.
George L. Harrison, governor OF the
Federal Reserve Bank OF New YORK,
leaves this week to attend the confer
ence abroad. When Mr.. Harrison start
ed for Europe in February last the New
York Federal Reserve Bank rate was 4
per cent, that of the Bank of France 3
per cent and that of the Bank of Eng
land Az per cent. Following Mr.. Har-
rison's conference with the central bank
leaders in Europe, the New York Federal
Reserve Bank rate moved down to Its
present level of 81 per cent, the rate
of the Bank of England went to per
cent and that of the Bank of France
to 212 per cent.
Perhaps far-reaching changes in the
financial situation will occur as a re-
suit of this next conference of the CEN
trail bank leaders, which will take place
in London within the following two
weeks.
Farmers Problems.
J. C. Nichols of Kansas City, builder
of model subdivisions discussed with
the writer lately some OF the problems
that are confronting the farmers OF the
West.
so many lines of business have been
passing through rapid change in meth
DDS and styles that there has been nee
essarily large losses in this readjustment
period" said Mr.. Nichols. The re-
markable improvement in the uses of
machinery will in the long run be of
general public benefit, but the improve
ment necessarily has created temporary
losses. In the agricultural areas of the
West the large amount of labor being
released from farms by the use OF i'm
proved machinery has tended to in
crease the unemployment problem. The
expenditures on the part of farmers for
machinery under present prices have
not as yet proved profitable to them,
but in the long run these expenditures
should turn into gains.
81 believe the tendency of the last
few years for dieting and reduction in
the amount OF food consumed is
factor in our surplus food supply The
tendency for less hard physical labor
as result of use of machinery has
also reduced the amount of food con-
sumed by laboring people,
Upon the question of cities issuing
bonds to open up new public improve
ments to help the unemployed situa-
ton, Mr.. Nichols said:
while I believe in carrying on all
needed public improvements at this
time in order to increase employment
and thn use of materials, I do not feel
that the emergency of the situation is
so great as to justify any public i'm
provements which are not actually
needed In the long run the public
pays the costs and the benefits must
be weighed over long period rather
than the immediate relief"
Some Firms Prosper.
When George B. Everitt, president
of Montgomery Ward & Co., announced
that this company had lost $2,848, 900
for the first nine months of this year
it sent chill down the backs of many
investors, who feared for the future
of every blue chip stock. The Mont
gomery Ward Co. common stock divi-
dend of rs cents, due last week, was
passed and the dividend money, nearly
$500, 900 was kept in the treasury for
use in the company'sc program OF fu-
ture expansion.
But many other businesses, instead
of showing a loss in net profits, are
showing an increase, or at least are
making an excellent showing in COM
parison with 1929.
Here are few, comparing them with
the 1929 record: