Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-26
BRITISH MAINTAIN
CURRENCY LEVELS
Government Saves Large
Sum by Bringing Pound
Back to Par.
BY JOHN F. SINCLAIR.

Special Dispatch to The Star.
NEW YORK, January 26. - Wher
Frederick G. Goodenough, chairman Of
Barclays Bank of England, in his an.
nual address said that Great Britain
had Cancelled many billions of her wal
debt and indirectly suggested that
other countries might do likewise. he
of course, did not mention that the
British government had worked fran
tically to bring back the pound sterling
then at $3.17-to par. S4.875.
Why did The British government
want the pound up to par? Because
the British had enormous investments
in every part of the world. The amount
not less than SIS, ZOO, 900, 000-was ali
payable in pounds. But the pound was
worth only SIT. Now increasing the
value OF the pound from SIT to
$4.875 meant that foreign debts owed
to Great British were to be paid at
the increased rate.
So while Great Britain did cancel
some questionable war debts, her pol
icy of increasing the pound by more
than one-third was the reverse. That
policy made her responsible debtors
pay more, not less.
Road Construction.
Three billions of dollars-that's the
amount which will be spent during this
year by ITO nations and political sub
divisions on roads and road construc-
ton. According to the United States
Department of Commerce this total
will be larger than those of 1880 and
1929-both record years.
Argentina's program is perhaps the
most ambitious. Recently the new gov
eminent there issued a decree calling
for bids for the construction of some
800 miles of paved highways, with an
outlay estimated at $200,O00,00
Japan, with its 100000 people. ex-
poets to put $20,000,000 into roads in
1881: Canada about $20,000,000.
Every nation seems to be improv-
ing its highways This is encourag-
ing news to the man looking for work
The Spring cannot come too soon for
him.
Examining Oil Fields.
j. Elmer Thomas, past president Of
Biologists, has sailed for Europe to
look over the oil fields there. James
Warburg of Kuhn, Loeb g. Co., and
T. M. Pettigrew, who brought in the
famed Kettlemen Hills for John Hays
Hammond during the feverish wildcat
drilling around Los Angeles some years
ago, left a week earlier to look over
German oil fields. There's altogether
too much production nova severe
overproduction, in fact. Northern Eu-
rope, especially Germany, is becoming
the scene of quiet, but intense, oil ac-
tiyitieS, covering recently discovered de-
posits in an enormous area. It's a
pretty good guess that the next big
chapter in oil history will be written
there.
The next IL months should reveal
at least part of the story Of what may
be, expected from the German oil fields.
Business Improving.
John u. Calkins, governor of the Fed
eral Reserve Bank of San Francisco
said the other day that the best OBJ
servation on business conditions that
he had heard recently was one which
pointed out that business was improv-
ing in at least one particular.
There may or may not be overpro-
duction at the present time" Gov.
Calkins went on to say. but one thing
is sure-there is no longer overpredic-
ton That evil seems to have been
pretty well eliminated.
"I think that this depression has
taught us that the business statistics,
data and charts are interesting but not
in themselves suficient to keep us out
of depression. The confident economist,
armed with his statistics, often says
that such knowledge will prevent bust
ness trouble to a large extent. But /
think that idea has been pretty well
exploded
The cocksureness that prevailed only
a short time ago about the new golden
age of business has entirely disappeared.
Dangers of Unemployment.
Here is what H. H. Breach, national
president of the Electrical Workers, has
to say about unemployment:
Nothing is more fatal to a human
being than idleness-especially OF the
mind. It eats him up. Decay sets In.
Nothing destroys his mind, his self
respect and morale quicker. 1dleness,
illness, old age-go together. The hap
piest people are those kept busy.
There's no substitute for job"
That's it-exactly. Its not only IN
getting work to help support family;
it's in keeping busy, so ones own
morale and courage does not sag. This
side of it, believe, is more important
than any other.
Morgan Resources.
Louis Corey's book. just out, The
House of Morgan" is well worth read
ing. In 1929, ]. P. Morgan & Co. held
90 directorates in 70 corporations, with
combined assets of $4,000 900 900. and
in addition. by reason of Morgan's in
fluence through affiliated corporations
controlled $4,000, 100000.
MIR. Corey shows that this ire
mendous control is concentrated in l61
persons in the Morgan organization
who hold more than 2,450 interlock-
ing directories in corporations. Think
Of it!
The Corey book, a painstaking, care
full piece of work, shows just how the
elder Morgan worked out his plan tc
establish a community Of interest be-
tween industry and finance. 1t gives
closeup word picture Of the man: how
he worked and schemed to make the
House of Morgan the outstanding
financial house-not only in the Un1tec
States, but throughout the world
which 1t Is.
Students of finance cannot afford Il
miss reading this book.
Commissions on Loans.
When the press dispatches from
Peru stated recently that the depoSeC
President of Peru and two of his SON
had been ordered to pay back to thu
national treasury about $500, 900, al
legged to have been the amount received
as a commission for giving a Peruvian
loan TO a certain international bankint
group, it caused considerable Surprts
In Wall Street
But not to those who have under
stood that for years there had beef
commissions given to go-betweens an
Intermediates for securing loans fron
many countries besides Peru.
The custom has grown up becaus
of the unstable political conditions tina
have surrounded many of the coun
tries. It has been far too loosely deal
with and it has been the source @
much trouble to American investor
later.
The next few years should see
decided change for the better. And
will, as soon as more detailed informa
ton is insisted upon by the investor
foreign securities.
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