Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-01
BUSINESS SURVEY
/. STICKING TO FACTS
Avoiding Conclusions Which
Brought Criticism of
Earlier Reports.
BY JOHN F. SINCLAIR.


National Business Survey Conference
wisely leaves out drawing conclusions or
avoiding interpretations. In the past
the committee, made up of a score of
well known business leaders, has been
subjected to sharp criticism because OF
a tendency to draw conclusions This
time bare factual statements of business
are announced. without comment.
The promising business signs, at the
moment, are easy credit and the sta
bility of savings deposits. Business re-
vival in a few foreign countries like
France, Sweden, Denmark, Switzerland
and CzechoSlovakia are noted.
A careful reading OF the report will
show no extraordinary signs of business
recovery yet; that the commodity price
| level is far from stabilized, even at the
present record lows, and that bank
| liquidation of security loans is probably
II In submitting the report, Mr.. Barnes
wrote:
inportant lines of business and indus
try is submitted with confidence In lts
essential accuracy. -
The gathering of unbiased tactS az
this time is placing the emphasis where
it should be.
Iuis Monies de Oca. Mexico's secre-
| tarv of finance, who Is in New YORK
| discussing with international bankers
| Mexicos outstanding and foreign oeot,
/ is not the first representative OF tnis
neighbor republic to negotiate loans III
! the United States .,.o
! .1uarez was President of Mexico, the
| New York firm Of Daniel Wooonouse O.
| Co. agreed to purchase S30,OOO,OUO ONT
wear Mexican government bonds to pear
! interest at 7 per cent. But the loan Ieli
| through. The Mexican Minister SV
washington challenged 1t, ana WINE
about az 900 900 of the bonds were beau
fifuIlv engraved-ready for sale-they
never were sold to investors.
wear later, j. w. Lies OF New YORK
underwrote a 25-year per cent loan
for S2.950,000. After that a score Oh
other Mexican government loans FOL
lowed until in 1918 the Mexican gov
! eminent secured a l0-year 8 per CENT
| loan for 100000 pounds cover So
600, OOO) A year later, the entire FED
eral debt defaulted. - 10.
eight different issues outstanding, total
| ing S265 ,OOO, 900. This is principal only.
Interest-issued in the form of certi7-
Gates script. and warrants-adds an
other Sl37 100000 making total OF
/ S4O2 800 900. This does not INCLUDE the
railway debt, now almost as large as the
national debt. ~ =,
default, be funded into new loan!
| This is the problem today confronting
the bankers and the Mexican represent
atives.,
Max Winkler, New York banker, a
! student of international debts, says that
unless Mexico succeeds in developing
her resources and increasing her COM
merce, American investments are not
likely to increase very materially over
the present figures"
Nevertheless, the impression Is quite
prevalent on Wall Street that the
various national issues will be funded
into one and arrangements made to
start paying on the obligation, even al
though the amount paid by the Gov
eminent for the next few years would
be relatively small
Sir Herbert Holt, Canadian capitalist,
and Lord RotneTmere, British news
paper owner, have joined forces to form
the largest newsprint manufacturing
corporation in the British Empire.
The deal has been pending for
months. The Holt-Gundy interests of
Canada control the Canada Power 81
Paper Corporation. The Rothermere
interests control the Anglo-Canadian
| Pulp 81 Paper Mills, Ltd
Last Fall the Canada Power & Paper
Corporation secured control OF the
Wayagamack Pulp & Paper Co. and the
Port Alfred Pulp 81 Paper Corporation.
In the new deal six mills in the Prov
ince of Quebec will be brought under
the control of one company, five of
them being in close proximity, says E.
G. Sabine, United States trade commits
sioner in Montreal, and Lord Rother-
mere and his group are to become
major stockholders in the Canada
Power & Paper Corporation.
American newspaper owners, who
are buying paper for $55 ton, should
be putting SIS and $40 away in a re-
serve fund for every ton of paper they
use. When the paper situation clears
up and overproduction is thing of the
past paper will sell on a reasonable
basis" said Sir Herbert Holt to this
writer not long ago.
AT how much a ton?" I asked.
Certainly not less than SIS, a figure
which would enable every one to live"
This should interest neWsprint pur-
| chasers, especially the phrase that the
| figure would enable every one to live.
Germany's Rhineland celebrated in
scores of cities and towns last night
with the ringing of church bells and in
| ii GENERAL SD44b VI lGJOlC4llSs TldBoy
! bunting. bands, eating and drinking
For the last soldier bearing the tri-
colors of France left Germany yester-
day, after occupying German soil for
| IL years,
What did it cost Germany to foot the
bill of occupation for those 10 years?
| The latest figures indicate it will reach
| the stupendous sum of $1,500,0 900 0O0
This item in the budget has been a
dead weight on Germany since the war
! She could do nothing about it, for the
allied powers had decreed that the oc-
! cupation army should remain until GER
| tain conditions of the peace treaty we're
| met by Germany,
To Foreign Minister BRAND Of France
and the late Gustav Stresemann, then
! foreign minister of Germany, must be
given largely the credit for the present
! evacuation.
Germany is again the absolute ruler
! of her own land.