Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-24
IRON TRADE INDEX
DECLARED FAULTY
Federal Reserve Economist
Says Industry Is Not Safe
as Barometer.
BY JOHN r. sINCLAIR.


Bank of New York, takes issue with
those who believe that any one indus
try-like pigiron. for example-can be a
safe barometer of trade. The "pigiron"
barometer, says Mr.. Snyder, was zone
OF the worst that could have been
found, misleading as to time, violence
OF movement and effect"
Mr.. Snyder thinks of trade in terms
many times broader than pigiron, with
trade that covers the making and sale
OF products, reaching in value maybe to
$lOO,OOO.O 100000 or more and involving
transactions of not less than $1,000.
coo. 00O, OOO."
Inc Snyder barometer, therefore. is
measured by "the total exchange of all
goods, services, securities and propertv
IN nation whose total tarde is possibly
greater, measured in money TRANSACT
lions, than all of the rest of the world
put together"
so in measuring the relations Of
credit and trade the Snyder yardstick il
vastly diHerent thing from the "old
pigiron" complex.
Gold Supply.
We should be suffering from a veri-
| table gold famine were it not for the
economy practiced In this country and
some otner gold standard countries" saws
reginald McKenna, British banker
4nls question OF sufficient gold SUD-
ply 10 meet the demands for il in the
use OF currency and arts has become a
pronlem OF worldwide Importance.
Many bankers and economists, how
ever, hold the McKenna belief that
economy through the central banks is
Cne solution OF the problem. The con-
| SehIratlon OF reserves in central banks
mas mace Tor greater proportion of
credit being available and a more EN-
cient distribution. This is SUBSTANTIALLY
the view of A. Parker Willis.
| irving Fisher OF Yale, an optimist on
tne SCock market, is much more pessf-
! mlSLic over the gold situation. He is
IearfuI that gold famine NAV occur in
the not too distant future.
! But Albert Wiggin, chairman of the
CnaSe National Bank. insists there is
enough gold in the world to do the leri-
slmate business of the world at com
portable rates of interest"
While there are conflicting ouinions
ABOUT 1t, the weight of opinion favors
the view That no gold famine is near.
Refrigeration.
No industry has felt competition anv
OF mechanical refrigeration.
PROBABLY half dozen products ara
Wloely advertised backed up by strong
NATIONAL sales organizations
Inc business of mechanical refrioer-
atlon is growing, but the competition in
Cne neld Is becoming very severe. This
new conoltlon has been brought about
oy several companies shifting from
Eaolo ana other mechanical euuipn,ent
enterprises to that of developing new
refrigeration units and atten1nting tn
market them through sales orrani-
1atlons already developed for other
Reports from the various companies
cropped since November, SUFFERING some
Wnat from the trade conditions. the in.
| StallaClon OF mechanical Refrigeration in
household units is in excellent demand
earnings OF mechanical refrigeration
companies, broadly considered. have
peen at low ebb during the last sew
eral months, and the majority of con-
Germs are likely to have dificultv In
showing satisfactory returns in the nres-
statistics.
The ice companies seem to be doing
Detoer. For ice is regarded now. more
tnan ever, as necessity.
Inc significant thing with reference
to ice companies is that the seasonal
demand for ice is becoming less marked
every year. All classes of people demand
ice today not as luxury, but as a nrin1e
necessity. This has resulted in a steady
upward demand with Winter and sum-
mer business getting nearer together in
No one would have predicted such a
result 10 years ago.
Germany's Trade Position.
Gerard Swope, 81, president of the
Seneral Electric Co., sees Germany as
tne real International business rival of
| the United States.
| with the YounC Y,Iar q, oeronA -.
many would offer much more severe
competition induStrially than ever be-
lore, even before the World War" saws
the General Electric leader. Germany
Is now In poor condition industrially
put the sentiment of the Young plan
ana the adoption of its measures will
bring immediate enhancement Ia her
commercial status"
:, rms American executive is a firm be-
| never IN mergers and cartels for Eu-
rope, on the ground that they are rem
oerlng real service in the elimination
Oh WaSteIul competition. While Euro
pean industries will thus be enabled to
conne togetner and agree on restrictive
programs, such mergers and cartels In
many cases would be outlawed in the
united States because of Sherman anti
| trust provisions.
The General Electric Co. of Ger
many is partly owned by the American
SeneraI Electric. It's directors are Owen
ID. Young, Gerard Swope, Clarke Mir
rlor, Arthur Baldwin and j. Edmonds.
Also. 1t has an interest in Siemens a.
HalSke, leading German electrical
company. and recently took over slO.-
100000 OF participating debentures of
that company
| OF recent weeks the General Electric
has co-operated in the formation of the
European Electrical Corporation, Linn
tied, a substantial international public
utility holding and management com
pany.
And so. leading American companies.
such as General Electric are becoming
more vitality interested in the welfare
OF European nations than casual COM
ment would indicate.
Sees Better Business.
Eugene M. Stevens. president of Con-
| t1nental Illinois Bank & Trust Co. of
Chicago, the only billion dollar bank
! under one roof in the United States.
| is inclined to believe that In most lines
OF business the low point has been
reached and that an Improvement In
business and industry from now on may
be expected.
Replying to my question concerning
credit conditions in the Middle West
he says:
Credit is plentiful in Chicago for
commercial business purposes and there
| has been considerably easier tendency
in loaning rates. The banks are out OF
| the Federal Reserve Bank here and
have ample money for the demands of
business, which are expected to increase
over the next few months"
And the business outlook" I in
quired.
Unless something unforeseen hap
pens we are looking forward to a good