Evening star., 1931-12-17
Everybody's
Business
Gold Standard Surges to
Front With Jabanese Ac-
t,on-A b n d o n m Mt
Should Make for Higher
Quotations-Ra;1 Waoe
Cut Decision EXPECTED.
BY DR.. MAX WINKLER,

Special Dispatch to The Star.
NEW YORK, December 1.-THE gold
| standard Is once more the brief topic
Of interest. With Japan off the stand
| ard, reports are current that the United
States may follow suit
Professional spectators for the de-
cline apparently do not realize that
abandonment of the gold standard
should make for higher rather than
lower quotations. This was borne out
by events in japan, where prices scared
Immediately following the ccuntry's en-
barge on gold exports. In fact, prices
advanced so sharply that authorities
deemed it necessary to close the ex-
changes.
The weeks events are likely to be
featured by two developments Of a con-
structive character. An agreement on
the rail wage cut Is expected conf
IDENTIFY at an early date. This should
make for better feeling all around, es-
pecially in the railroad division, which
has been especially hard hit.
Extension Favored.
The other development refers to the
question of German short term credits.
The Reich's creditors are inclined to
agree to an extension, thus evidencing
| confidence in the inherently sound posi-
tion of the country and in the likeli-
| hood Of an equitable adjustment being
| effected in regard to the country's
political indebtedness.
E. A. Cudahy is a confirmed bull on
| his own stock The book value, he
maintains, is approximately sixty per
cent higher than the price.
An investment in the common stock,
Mr.. Cudahy adds, should be profitable
one to the company. This statement
was made in connection with the pur-
chase by the company in the open
market of about $4,000 shares of stock
at an average cost of S4352, as COM
| pared with a present market value of
| about $32 a share The latter figure
| is equal to slightly more than ten times
! earnings for the fiscal year ending
+ Oct. 81.
| Competition Impossible
1t is utterly impossible for American
| petroleum producers to compete with
| foreign oil, according to Writ Franklin,
| Of Tulsa Okla. president of the Inde-
I pendent Petroleum Association.
Mr.. Franklin adds that continuation
OF free Importation must mean the ulti-
mate disappearance of the American
tndepent producer, refiner and market
! er. He thinks there should be either
proper tariff protection or some ade-
| quate restriction upon the Importation
OF cheap foreign oil now entering
| American ports to the practical de-
struction of the business.
| The effect of the passing of railway
dividends upon Union Pacific is some
what exaggerated Among the princi-
| pal holdings Of the system are shares in
the New York Central, Illinois Central,
Chicago & Northwestern. and Balti-
more & Ohio. Only the last named is
still paying dividends.
The loss to the Union Pacific as a
result of the dividend omission by the
! above systems approximateS Sl.70 a
share. While this figure constitutes a
rather important item. it is worth re-
membering that the roads's income
even under present trying conditions is
adequate to permit of the payment of
| liberal dividends. The liquidation in
the shares therefore would seem to
have gone somewhat too far.
c. & O. Boom Expected.
Among the railroad shares which are
wage decision. Chesapeake g. Ohio
ranks prominent. For the first ten
months of this year. this road net ag-
gregated $3.l6 share, or slightly more
than 9 per cent below last years figure
| This compares with annual dividend
| requirements of $3.50 a share. Little
change is expected during the balance
OF the year.
Nearly 80 per cent of the road S
traffic consists of coal and more than
IS per cent Is originated on the COM
Pany's lines. Although the coal move
ment has been somewhat reduced as a
result OF the warm weather, it is a
| foregone conclusion that the dividend
on the common will be amply covered
| 1t is needless to mention that the
abandonment by Japan of the gold
standard will not affect obligations of
the japanese Government. cities or
corporations. which are payable in
! dollars, according to Juichi Tsushima,
financial commissioner of the Imperial
Japanese Government.
Payments to Be Harder,
| 1t will. however, render it somewha.
more difficult for the country to make
payments, because lower exchange
will require larger sums to take care of
the service charges on the nations ex-
| ternal obligations. Since Japans ster-
ling debt is rather large. the decline
in the value of the pound has been of
some help.
1t is hoped and expected that addi-
tional funds poured into the Cosach
! Chilean Nitrate CO.. will not rec-
resent good morev being sent after
bad. Arrangements have just been
made whereby American bankers will
provide for the current financial re-
quirements of the company during the
remainder of the present nitrate year.
ending June 80. 1882.
Medley G. B. Whelpley spokesman
| for the bankers, points out that the
new financial arrangements are pred
icated on the Chilean governments S
reaffirmation on the nations historic
policy that financial obligations con-
tracted will be respected by the govern
ment, thus evidencing again the con-
| fidence in which the undertakings of
the Chilean Government are held In
the financial markets of the world.
In the meantime, Chile's entire ex-
ternal debt continues in complete
default.
| The moratorium epidemic is spread
ing. Reports are current that Hungary
may be obliged to request a partial
moratorium For some time, the coun-
try has been experiencing difficulties
in securing foreign exchange necessary
to meet the service on the various eX-
ternal debts. She has enough pengoe,
but the question of converting them
into dollars is the great problem facing
her.
The League Of Nations loan is not
likely to be affected. but holders of
municipal, bank loans and corporate
issues may be called upon temporarily
to forego interest payments.
| (Copyright 1881. by the North American
Newspaper Alliance: Inc