Evening star., 1931-12-26
BY DIR. MAX WINKLER.

BY DIR. MAX WINKLER.
Recovery in Europe will not come
until reparations are cut out, eliminated
in their entirety, and armaments cut
drastically, according to Senator Will
liam E. Borah, head of the Senate
Foreign Relations Committee. If Europe
cannot see her way clear to accomplish
this, the United States had better come
out of Europe and stay out, he con-
tinued. While it may cost the country
something to come out, it will bankrupt
it to stay in, the Senator adds
One cannot, however, quite follow his
argument made no doubt with the ut
most sincerity, that the United States
has, since 1915, put close to $45,000,-
100000 in Europe, and that this
Stupendous sum has not ended the eco
nomic crisis in Europe. but has brought
an economic crisis to the United States.
No one knows better than Senator
Borah that little, If any, of the loans ad-
vanced by the United States to Europe
actually left the country. They were
used almost exclusively to purchase
Americas excess production at a con-
siderable profit to American producers.
Railway Relief Started.
The first step to relieve the much
harassed railroads is now being taken.
The Interstate Commerce Commission
has just granted permission to the roads
to put into effect the freight rate in
crease approved recently
The increase is expected to rest an
additional revenue of $100,000,000 to
$125 000,0 900, which together with the
anticipated wage cut of 10 per cent
should enable the various transportation
systems to- continue to take care of
their funded indebtedness.
The obligations of the so-called
secondary roads should respond to these
distinctly favorable developments. Once
again stockholders are given explana-
tions in place of dividends which have
been earned. Col N. L. Howard, presi-
dent of the North American Car Com
pany, informs holders of the preferred
shares OF his company that the dividend
will be covered more than twice for the
current year. However, in view of the
considerable amount of equipment trust
certificates maturing next year, and the
disadvantages current in the bond
market. directors thought it advisable to
conserve cash.
The colonel adds that preferred divi-,
dend requirements would be applied to
the redemption of equipment trust GER
tificates
Earnings Keep Level.
1t is hoped that market values now
universally depressed will in due time
regain the normal levels below which
they have sunk from the extreme
heights two years ago, according to
Albert A. Jackson, president of the
Girard Trust Company of Philadelphia.
AS to the earnings of the institution,
Mr. Jackson calls attention to the fact
that profits for the year ended Novem-
Der 80, 1881, were exceeded only by the
record figure of 1929.
This does not, however indicate the
depreciation in the trust company's
securities account, despite a reserve
fund of $2,00o,000 set aside toward
shrinkage in market values and other
contingencies.
Hopes we're entertained that discour-
aging bank failures would cease as soon
as the National Credit Corporation
commenced to function. The enter
prise has been in existence for some
time and the closing of banks through
out the country goes on. The situa-
ton in the New Haven, Conn, area has
become so precarious that the clearing
house was obliged to issue a ruling to
the effect that all members must re-
uuire the 90-day statutory notice for
the withdrawal Of savings deposits.
In the meantime the Nation expects
salvation from a bigger and better
reconstruction finance
corporation.
Building Experts Hopeful.
Building authorities are looking with
hope and a degree of confidence to-
ward the new year, according to A. E.
Dickinson, president of the Indiana
Limestone Co. A shortage OF modern
homes is developing similar to that OF
the postwar period, he continued add
ing that residential construction will
probably be the first type Of building
to revive activity in the industry.
Cuba's independence and economic
well-being are contingent upon re-
adjustment of the tariff treaties with
the United States. according to Count
Niolas Del Rivero. publisher Of Span
ish Americas second oldest daily. the
Diario de la Marina. Count Del Rivero
per cent preferential tariff on Cuban
products to 40 per cent. and an adj
vance to As per cent in the preferential
tariff on American goods to Cuba. as
compared with present rate Of Is per
cent.
Such changes would give great i'm
petEs to the islands sugar industry,
serve to alleviate the economic depres-
sion, and be of general benefit to both
countries. 1t would also help the,
$500 100000 Of American funds invested
in Cuban sugar properties out Of
total of American capital in the re-
public estimated as well over S1,200,-
100000
Germans to Pay Gold.
Most of the German internal debts
are scheduled to be paid in gold. Pay
ment in marks is therefore to be made
on the basis of quotations of the yellow
metal. So long as the mark is at par
or within the so-called gold points,
obligations are met in German cur
rency. The Continental Rubber Co. of
Germany, in which American capital is
understood to be interested has just
announced that the coupons on its gold
mark bonds dealt In on the Amsterdam