Evening star., 1931-12-21
BY DR.. MAX WINKLER.

Special Dispatch to The Star.
NEW YORK, DeceT Der 21.-The i'm
pressive advance in securities and COM
modities markets, marred somewhat by
a recession in sterling on the Canadian
and the Scandinavian exchanges. was
not due, as some suspect. to artificial
support lent by the banking interests.
TIE rise may be said to be the result
Of favorable developments, both dOmeS-
tic and foreign. of much more funda-
mental character. Among these may
be mentioned the reported change in
the attitude of the French. who are
apparently willing to accept the view
that commercial debts are entitled TO
preferential considerations.
Mr.. Lamont'S statement to the effect
that the short-time German credits do
not in any way constitute a menace to
the American banking situation were
also regarded as highly constructive.
So were his views concerning the gen.
eral attitude of Germany toward con-
tractual obligations of a non-political
character
In the domestic field encouraging de-
velopnents include the appointment by
tie railroad executives of a committee
to negotiate voluntary cate cuts with
union heads and the prospect of sat-
istactorv adjustment being reached at
an early date.
Takes Optimistic View.
This is borne out by the optimistic
statements by Daniel Willard. president
of the Baltimore e. Ohio Mr.. Willard
points out that steps already taken or
planned to ease the carriers difficulties
are reaSSuring.
o.. III - =
strong financial position and has ade-
quate cash on hand. according to Philip
G. Gosler, president Nevertheless, the
company is changing its dividend policy
by paving common dividends in per
cent cumulative preference stock rather
than cash at the rate of 81 so share.
This change, Mr. Gosler points cut, is
prompted by the desire to conserve
cash resources.
On the basis of prevailing quotations
of Columbia Gas preferred, the pro-
posed payment represents only about
60 cents on the dollar. However, i'm
provement in price, confidently antici-
pated, and the conversion feature rem
der the present low return on the COM
mon stock apparent rather than real.
Copper Curb to Help.
Barring any untoward happenings,
the outlook for copper and copper shares
may be viewed with a certain degree
of optimism. Producers of about 80
per cent of the worlds total have
reached an agreement regarding cur
tailment of output and the sale of for
eign copper. Production will be cut to
about $4,000 tons a month from a
present output of 100 900 tons and about
l75000 tons two years ago.
Consumption figures are not avail
able, and if estimates of 10000 to
100000 tons a month may be relied
upon, an appreciable advance in the
Whether the advance will be sustained
will depend entirely upon the demand
In this connection the European situa-
ton will play prominent part, because
of the normally large consumption of
the metal by number of European
countries.
Rather than pay dividends the Gulf
Oil CO. of Pennsylvania is using its
cash to buy up oil properties at bargain
prices. 1t is difficult to comprehend
why the management is not inclined to
afford the stockholders an opportunity
to take advantage Of existing low prices
They, too, might find ways Of employing
the dividends to which they are en-
Tiled TO CeClQeQ advantage.
An official of the company states,
however, that while the omission was a
difficult step to take, it will prove to
have been the most desirable policy for
stockholders from a long-range view
point.
Foreign Bonds Drop.
Foreign bonds, very popular medium
for the investment of funds not SO very
long ago, are establishing new lows
each day. To be sure, many issues al
ready have stopped, and others may
socn stop, payments, which adds to the
unpopularity of that type of obligation.
Nevertheless, it is within reason to as
sumo that not all foreign debtors are
insolvent or willful defaulters. Prices
in ma ajority of cases are appreciably
below bankruptcy levels.
This is especially true Of German
loans. Thus far there has not been
days delay in the payment OF either
principal or interest. Prices would be
better were 1t not for q special ruling
by the Reachsbank. The latter has op-