Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-16
STREET POWDERS
MARKETS DEPTH
Traders Speculate on How
Much Further Prices
Must Sink.
BY JOHN F. SINCLAIR.

always Ue ICSHCCOCOy says eAAC Wv
His holiness thinks we have lost sight
of the elemental man. Destroy human
dignity and you destroy not only all
dignity but the possibility of using 1t
to fashion better material world.
Although the Pope eschews COM
munism and socialism as unorthodoX,
he admits the many points of resem-
blance between them and the church.
Only the Socialist would reverse the
method of treating this ailing world.
Instead of reforming men first, he
would reform economic society as a
starter and let the new order of things
automatically improve man. The sin
Of capitalism would seem to be that 1t
has thus far shown no real determine
zion to renovatc anything. But It's
. Job that's got to be done-the sooner
the better-and capitalists might easily
take goodly part OF the Popes text
for platform.
How much further must the market
sink before it gets on level with bust
ness? This is the question Wall Street
is asking after watching stocks loop the
loop downward again yesterday, with
United States Steel dangling on the
edge of 100! Blue is the favorite color
in the Street today-optimists are
frankly discounted.
u. S. Steel was the first leader to
crack, and was forced down till it
reached 101, but by closing time 1t had
fought back to 1903. Auburn was bat
tered down about II points, till 1t
dropped below 200. General Motors
lost nearly points, closing at 20. Rails
retreated a bit, but as a whole showed
good resistance. American Can dropped
2k points to 1929.
Coming back to Wall Streets medita-
tions. ii should be clear that there is
nothing abnormal about the markets
course. 1t is relentlessly pushing down
to the solid foundations 1t catapulted
from during the speculation jag of the
new era" The conspicuous absence
of breezy optimism in Wall Street today
indicates that traders have decided to
face that fact. It is only natural. how
ever, to wonder what and where the
end will be, since no man actually
knows.
THE Americans, Dutch and Ger
mans are so far ahead of Great Britain
in commercial aircraft that they are
getting a grip on the worlds aircraft
market which will be hard to shake OF
in the DAYS to come. 1t Is the history
of the American domination of the
worlds automobile market repeating it
self"
These are the worls Of Lieut.. Comdr.
Glen Kidston, famous British flyer killed
last week in an accident. He felt that
Great Britain was tagging in civil avia-
ton because her home territory AFFORDS
too small base for q large transport
system. While it might be expected
that Great Britain's far-f1unR empire
would give her a fine opportunity to
expand her aviation lines, this is not
the case. Her dominionS have a large
measure Of autonomy In such matters.
and have developed their own bnes and
purchased foreign machines.
But Lieut.. Comdr. KidStonS refer
ences to impending world aircraft dom
nance by the United States is the most
important point. It may mean that
with the return Of prosperity Americans
are likely to find a field for expansion
that may furnish the same spur to in
dustry as the automobile did for over
two decades. The United States may
even gain that supremacy in interna-
tional air trafic. which may equal the
glory of the Yankee clipper ships on
the sea a century ago!
Agricultural relief in Minnesota has
come rather high! About eight years
ago the Legislature of that State estab-
lished a farm credit organization. To-
day the State is responsible for rural
mortgages totallng over $4,000, 000l
ildb SOuIiOo 4lkC q 1Ob VI 6db
Minnesota is a rich State.
The actual loss to the State is about
Sc, 900 900, and the credit organization
ii set up has still 100000 900 Of unused
credits available for further work. Con-
siderable assets have been accumulated
in real estate through over 1000 FORE
closures, about 1,700 of which it still
holds. The organization spent $500, 900
in reconditioning these farms for re-
sale. The present time is not favorable
for their disposal but return of
normal conditions will enable the State
TO realize On these holdings.
When 1t is remembered that the plan
still has many years to run, giving OPP
portunity for readjustment of finances.
the picture seems less sensational. Aid
has been extended to 12.257 farm units
which might otherwise have succumbed
to distress conditions and become a
burden TO the State.
Early in its existence politics got in
some effective work, but recent over
haulings are likely to improve matters.
The experiment is worth watching.
rather exciting race with time be-
tween Soviet Russia and Great Britain
Is taking place in Sinkiang Province,
China's wild West" The new Turk
sib Railway, recently constructed by the
Soviets in Turkestan, almost encircles
this rich Chinese province and Is drain
ing practically all its economic wealth
into the Soviet Union.
For long time the Chinese govern
ment has planned a motor road from
Peiping to Urumchi. capital Of Sin
kiang But devastating civil wars have
prevented 1t, and MOSCOW has method
ically been fastening her powerful grip
on that territory
Now Great Britain has sent an expe-
dition through the Himalayan Mountain
ranges of Northern India into Sinkiang
AS II progresses, it is establishing suit
able bases for planes which will follow
/ In this way the British hope to estab-
J lish an air-freight route into the noun
tain-ringed province Later. they plan
motor road which will enable motor
caravans TO penetrate, carrying imports
! and exports.
Speculation is rife in Wall Street as
to the effect the death Of George F.
Baker Is likely TO have on the policy OF
the institutions over which he ruled
while alive. This applies particularly
of course, TO the First National Bank
and its trust affiliate, the Guaranty
Trust Co.
The discussion is whether a merger
may be expected or whether the FIRST
National, under the direction Of George
r. Baker Jr., who is the principal in
l1eritor of his fathers estate, and Jack
son F. Reynolds, president, will pursue
the old policy of independence.
While other banking institutions have
been busy merging for expansion pur.
poses and erecting impressive new sky
Scrapers, the First National has re-
manned close 10 its own line and haI
been doing a great business in its ole
quarters at Wall Street.
GcopyriEht. 1891. by the, North American
Newspaper AnianceD