Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-03
Everybody's
Business
Gsrman Currency Unlikely
to DsSrse'sts a. Before.
Wheat Rjss Partly Due
to Drop ~ Soviet Sh,b-
Ynsnts.
BY DIR. MAX wISKLER.


depreciate again as II did during the
post war period overlook one cardinal
point. After the conflict Germany's
debt was almost exclusively payable IN
marks 30 that a decline in the latter
meant a corresponding saving for Ger
many. At the present time the coun-
try's obligations are payable not in
marks but i'm gold. This applies to in
ternaI as well AZ external issues.
When one realizes this. he Is in q
position 10 appreciate the remarks
made by Or. Luther, head OF the
Reichsbank, when he pointed out that
Germanys very existence depends upon
the maintenance of a stable currency,
and that the large foreign debts would,
with every decline In the value Of the
mark. stand at higher value in the
books OF the debtors.
"A poor country must be cheap" said
DR. Luther. eff IL succeeds in estao-
fishing its payments and prices on this
basls. the effect will be secured on a
solid foundation, which q depreciation
OF the currency will give only for a
very fieeting period. No country that
has had 20 endure, as Germany has,
the CHASTITY experience OF our postwar
imitation can tolerate q fresh nlow 70
confidence IN the future of her savings,
certainty and fear.
'The gold and dollar parity Of the
mark must be maintained IN oil circum-
stances +" concludes Or. Luther.
Factors in wheat Rise.
The continued rise In wheat To
new high for the current movement
NAV be attributed TO q number OF fac
tors. Chief among these are the de-
cline in shipments from Soviet Russia
during october and the belief that
Russia may suspend shipments for the
balance OF the current year and for
1882, a reduction in the world crop
outside of Russia Of about 100000 OO
bushels, a decidedly poor crop IN En-
rope, and the uncertainty as 10 the
stability of the various national cur
rencies, which may be assumed to nave
led TO the purchasing of grain by people
who prefer to place their funds into
tangible commodities rather than keep
them IN currencies which may soon de-
cline in value.
Barring any untoward developments,
in regard to Russia, the ad-
vance in wheat is likely to continue.
Although the amount Of business
done by the Westinghouse Electric Co.
in recent months was much less than
in previous years, a small profit has
resulted through greater efficiency in
operation, according to an official state
ment. Orders received during the first
nine months OF the current year,
amounting to about 100000 900, rep
resent a decline as compared with last
year Of 22.5 per cent.
The announcement states further
that even though general curtailments
A. A., all If
the efficiency of the company and its
hurt, but IL anything, have been i'm
proved.
Lack Of Buying Effect.
Lack OF buying is largely responsible
for the present depression, according
to Daniel willard, president Of the Ball
timore q Ohio Railroad.
Although Mr.. Willard expresses the
view that the present crisis cannot last
in a nation the size of the United
States, he refuses to venture an opin-
ion on the date of a business revival.
He indorses the plan Of the New York
Central in seeking voluntary wage re-
duction OF its employees, adding that a
10 per cent cut in the salaries of en-
ployes earning over $500 a year has
Just been placed in effect by the Balti-
more 81 Ohio.
The point has been reached where
certain roads can scarcely meet nXed
charges and are threatened with insol-
Vency, according to Patrick H. Joyce,
chairman OF the board Of the Chicago
Great Western Railway.
Mr.. Joyce adds that the present eco
nomic trend toward lower living costs
has made wage cuts unacceptable, and
-
cerned there is no alternative to gen.
eral wage reduction.
Regardless Of the attitude which the
railway unions may take, downward
adjustment is likely to be elected
shortly. Such a move is expected to be
of considerably greater aid to the car
riers than the recent decision OF the
Interstate Commerce Commission on
freight rates.
Within the next two weeks the Union
Pacific directors will meet for dividend
action, and the regular payment OF
$3.50 a share is expected. Earnings Tor
the full year probably win fall some
what short of the dividend requirements
Of $40 It Is. however, within reason to
expect that the possibility OF a larger
income from the roads half interest in
the Pacific Fruit Express may offset
such deficiency.
New England Power.
The final quarter OF the New England
Power Association should show salts
factory earnings, according to Frank d.
Comerford, president. The shrinkage
in profits reported for the first nine
months of the current year, as COM
pared With the same period in 1880,
Mr.. Comerford attributes to the in
L.. Al. "a e..
ing plants, which could not be utilized
to full capacity because OF the prevail
ing depression.
Adoption by Congress of q joint reSo-
luton to suspend the restraints OF the
antitrust laws, particularly the Sher-
man act. during the period OF the
present national economic emergency
is urged by Wilson Compton, secretary
and manager Of the National Lumber
Manufacturers Association.
Mr. Compton adds that he would ad-
vocate suspension only in so far as
these laws relate 70 cooperation be-
tween competitors for the purpose Of
controlling production, stabiliSing mar
ketS. maintaining employment oppor-
tunities and conserving natural re-
sources.
Holders Of Australian bonds should
derive considerable encouragement from
recent constructive happenings in the
commonwealth. The deficit for the
first quarter Of the current fiscal year
is CT 4e5 600 as COMPARED with a
deficit Of E6, TAT 900 in the correspond
ing period last year, due largely 10 an
increase in income and a cut in eX-
penditu-e, but also because Of re-
ALLEGATION OF interest payment dates
under the conversion loan arrange
ments made recently.