Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-30
BY JOHN F. SINCLAIR.
Special Dispatch to The star.

Special Dispatch to The Star.
NEW YORK, January 30.-When Z.
H. H. Simmons, president of the New
York Stock Exchange, at the close Of
one of the worst bear days in the stock
market in November said that the
amount of short interest was only one
seventh Of 1 per cent of the total listed
sales 1t showed in cold figures as moth
ing else could the fact that short SELL
ing is not widely practiced.
This short selling business can't
quite understand its the way one
stock market bull expressed himself to
the writer.
Should short selling be permitted? In
some countries 1t is prohibited.
But in falling market short selling
is undoubtedly the best stabilizer. It
creates potential buying power"
Had short selling been more extern
Sive the stock market decline might not
have gone so far nor so fast. The alb
sence Of short selling was due to the
sad experience of bears in the pro-
tracted bull market" says one market
observer.
When the elder j. P. Morgan said
never sell United States short" he was
only expressing the common sentiment
and feeling Of the shrewd investor.
The report of the United States Steel
Corporation, showing net earnings for
1929 Of $3.50 $4,000 staggered even
wall Street. It is the corporations best
record since the war. The net earnings
increased over 1928 by more than ST.
100000 q week.
Think OF company setting aside for
depreciation more than $5,000,000 a
month"; After taking out of net earnings
every conceivable kind of depreciation
there was left $l97, 53l 900. Preferred
stock dividends took $25,219,677 and
common stock dividends took 500, 40S,-
600. This left surplus of almost $109,-
900, 900. as against $39 100000 for 1928.
The record years of the United States
Steel Corporation were 1917, when net
earnings scared to a little more than
$295 600, 900 900, and 1916, when they
hit their all-time record peak of $780,
$4,000.
Ingot steel production is now running
at the rate Of more than n per cent OF
capacity, as against 70 per cent week
ago and 81 per cent two weeks ago.
The steel business is looking up,
Find a substitute for pulp or cut
down the size of newspapers" is the
suggestion Of w. d. Robb, vice president
OF the Canadian National Railways,
speaking before the Canadian Pulp and
Paper Association in Montreal.
Some 6,32s,OO0 cords of pulp wood,
worth $4,000 900 in 1928, were fabri-
Gated into finished goods, worth more
than $l0S, O00, 000," said Mr.. Robb be-
fore this gathering. 80 the value of
the raw material was multiplied 2h
times by the manufacturing process.
Rayon, too, Is demanding more pulp.
So Is the paper box business"
Conserve Our Forest" is becoming a
national slogan in Canada. Sir Henry
thornton agreed with Mr.. Robb and
called attention to the need of sub
stitutes whereby production may once
more overtake consumption in the
Canadian forests
Sir Henry's point Is promarily that
Canada badly needs scientific re-
search study in the solving of this
very important problem, which con-
Germs not only Canadian business, but
American as well.
Next to wheat, paper is Canada's
main export.
France reports decrease of more
than $4,000, 900 in exports last year
over 1928, and an increase of $685.
600, ODD In imports in the same period,
causing an unfavorable trade balance
of $3.50, 900 ,000
Ordinarily such adverse figures would
cause great alarm, but not in France.
For her invisible items" more than
counterbalance the unfavorable bal
ance in merchandise. These invisible
items" In the case Of France are largely