Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-12
Washington Ticker
BY CHAS. p. SHAEFFER,
Associated Press Business Writer

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The widespread cheapening of money
rates in this country, eliminating In
! reduction of the rediscount rate OF the
Federal Reserve Bank Of New York to
| 10 per cent last week, is expected in
| Government circles here to result in
/ foreign cuts, particularly with respect
| to the London market.
Such procedure would go long way
| toward punctuating the barrier that
has been put before the unhealthy i'm
portations of gold to this country by
| the New York rate reduction. OHcials
here believe the abnormally low return
| offered here will divert surplus funds OF
other countries into channels Offering
more profit.
| English business has already become
stimulated on the expectation OF easier
money there, trade advices state. Trad
| ing in gilt-edged securities is said to be
on the upgrade, and many British firms
plan to go into the money market Tor
needed credit requirements
Opinion varies as to the probable I'M
mediate effect of the New York cut in
domestic business. 1t is agreed, how
ever, that 1t will have no beneficial effect
on the stock market, but should help
substantially the price level of Govern
ment and the highest class industrial
| bonds. BY the latter group is meant
those bonds of industries about whose
payment of interest there is no reason
able doubt.
Government leaders also hope it will
drive much money into the American
bond market, putting the latter in po-
sition to absorb new issues which are
held necessary to trade recovery.
The Bureau of Mines reports COM
mercial stocks of bituminous coal used
largely for industrial purposes amount
ed to 29500,000 tons on April ]. In
comparison with the amount on hand
at the beginning of the previous quar-
| ter, this is a decrease of 100000 tons
| and is the smallest tonnage in storage
| for any period on record since 1922.
Exports during the first quarter of
| the year averaged 900 tons week,
/ as against 331 900 tons in the preced-
! ing quarter The weekly rate of con-
sumption in the United States during
| the quarter amounted to 6,866,000 tons,
as compared with 8.987,000 tons in the
! previous quarter. In comparison with
| the average weekly rate of consumption
during the last quarter OF 1880, the rate
of home consumption shows decrease
of 13 per cent.
Stocks of anthracite In retail yards
on April l showed the usual seasonal
decline, being 80 per cent under those
on hand January and also are some
| what less than en- corresponding dates
of other recent years. In terms OF
days supply, the present stocks OF
anthracite are equivalent TO Il days
! requirements.
DR. E. B. Swanson, chief economist
| of the Division of Petroleum economies
of the Mines Bureau, says natural gas
conveyed through long-distance pipe
| lines in this country replaces oil rather
than coal.
This is true. he says, not only in the
! case of domestic heating, where II Is
well known that oil is suffering from
the new competition more than oltuml-
nous coal, but to an even greater eX-
| tent by its substitution for oil by man
ufacturerS of artificial gas in the en-
richment of the water gas produced by
them. In fact, so far as substitution OF
natural gas for oil for this purpose
makes it possible to reduce the cost OF
city gas to ultimate consumers, the oe-
! Velopment may even result IN an IN
creased demand for bituminous coal, or
coke made from bituminous coal, as 10
I the. source of municipal water gas.
DR.. Swanson said there Is no ocI
casion to fear a shortage OF natural
gas in this country, as two Western
natural gas fields alone can meet tne
present and prospective demand for gas
for 81 and rs years, respectively.
The Federal Reserve Boards condi-
ton statement of weekly reporting
member banks in leading cities on May
6 shows decreases for the week OF SIZE,
900 900 in loans and investments, 800 :.
900 900 in net demand deposits ano
STA 600 900 in Government deposits ano
an increase of $4,000 900 in time de-
POSTS. ooo
Loans on securities declined SIG ,O0O. :,
600 at all reporting banks. and al
,other"t loans dropped $55,O0O.O 600 at an
reporting institutions Holdings oil
United States Government securities
declined $26,000000 at all reporting
banks, and holdings Of other securlties
decreased $3l 600, 900 at all banks.
Borrowings of reporting members IRON
Federal reserve banks aggregated $50,
900 900 on May 6, decline OF $2,OOO'OOI
in the week.
Great Britain is making a drive u
entrench itself in the Argentine motol
car market. Evidence of this fact i
seen in advices to the Department o.
Commerce which report 40 models o.
passenger cars and rs models OF trucks
were displayed by II British car ane
truck manufacturers at the exposition o.
British arts and industries at Bueno
Aires.
: Since 81 per cent of automobiles IL
the Argentine are American, the Ma