Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-22
i. S. MOVE AWAITED.
IN POWER PROJECT.
Canada Will Not Take Initia-
tive in st. Lawrence River
Development.
BY JOHN F. SINCLAIR.


Special Dispatch to The Star.
NEW YORK, January 22.-Gov.
Roosevelt OF New York may or may not
have in mind the Democratic nominal
ton for the presidency, but he is max
ing strong case for political support
in championing the recommendations Of
both the minority and majority mem
bers of the St Lawrence Power Develop
ment Commission.
Both of these reports are based on
the theory that the great power which
has been going to waste in the st. Law
renee should be harnessed as soon AS
possible and that the small consumer,
as distinguished from the large manu-
facturer, must be given the first consid-
Grafton in the distribution Of that power.
Reduction in Costs.
Should Canada agree on the site and
program, the construction of the dam
and power house. at a cost of $40, 900 600,
means cost OF but $40 per horse power
each year, as against twice that figure
for Steam-generated power. Probably 1t
will cost more, but these are the Gov
errors estimates.
If the power plant and dam is built,
the question of the transmission of the
pONSI 1OI COIlSulIlDblOll DGNOillGS iii
portant. Here the Governor asks the
Legislature for authority to work along
alternate lines: Either to negotiate with
a private company to build and operate
the transmission lines on a cost basis,
with the management fee added for
this service: or the State of New York
itself construct and operate the trans
mission lines
1 discussed this matter with certain
officials in Ottawa recently. Canada
naturally is interested in the St Law
renee project, as submitted by the State
of New York, but it's attitude is that it
will not make any decision in the mat
ter until the United States Government
as the sovereign body itself. submits the
issue TO the Dominion government
Government Grain Policy.
Hugh Bancroft, Wall Street Journal
editor said the other day that the
United States Government is engaged
''in one of the most indef2nsibie bits
of folly that has ever been tried in its
attempt to aid the wheat growers by
buying wheat 20 cents above the
market
Mr.. Bancroft pointed out that the
British tried it with rubber and failed;
Brazil tried it with coffee and failed;
Cuba tried it with sugar and failed;
powerful individuals tried it with cop
per and failed. Then, what chance is
there for p2gging wheat? Chairman
Legge of the Farm Board smiles and
replies. Wait and see
When it comes to stock market specu-
lation. Mr. Bancroft docs not believe
that lit can be stopped" He observes
that the United States Government it
self is carrying on one Of the greatest
Speculations ever tried-that in wheat
Bull and bear markets are an ex
\ r-F zIrWS
of human nature" said Mr. Bancroft,
land you can't change human nature"
Millions of Americans who never saw
Wall street will recognize this as dis
tinctly the Wall street point Of view.
Country Banks.
John w. Pole. controller of the cur
rency, after telling the Senate commit
tee that 90 per cent of the bank fall
ures during the last five years were
rural banks, rather sadly added that he
did not see very much future for the
country banks. He believes that there S
only one answer to the problen-and
that is an extension of branch banks in
certain definite commercial areas.
Those areas. he believes, should b.
clearly defined and outlined by COM
mittee of non-interested parties con-
sisting of the governor of the Federal
Reserve Board the Secretary of the
Treasury and the controller of the cur
rency.
In large commercial centers, we have
developed a type of banking which Is
strong end Efficient" said Mr.. Pole.
''Fo- this reason banks should be al
lowed to establish branches IN their
trade areas"
But in comparing country and city
banks. he made this statement: City
bank failures have an every case been
due to special conditions, while country
banks are the victims of faulty sys-
tenn"
Reserve Bank Earnings.
Not much is being said these days
about the earnings of the Federal Re-
serve Banks The 1880 record is Meth
ing to boast about.
The Federal Reserve Bank of New
York is typical. It is the largest and
commands the most interest. Its earn
ings dropped more than so per cent IN
1890. Still il earned SO per cent on
paid-in capital, against POT per cent IN
1929.
If both capital and surplus are taken
into account. IL earned 81 per cent
as contrasted to "a per cent last year.
The capital OF the New York Bank, or
December 81, 1880, was S65,577 900, a.
against SCI. 30l 600 at the end of 1923
while the surplus stood at $50, SIS 900
against $40 600, 600 at the close OF tht
previous year. Recent member bank
mergers and failures in the New Yori
district accounts for the 5hrinkage II
its capital and surplus.
In view of the low state Of trade las
wear, the record of earnings is gooC
one. But. still, that is the wrong poin
to mphasize-Federal Reserve bank
were never made 10 earn money. Tha
is not their function, and already to-
much emphasis has been placed on tina
point.
Thomas l.. Chadbourne, chairman o
the American sugar delegation, Is re
turning TO the United States full o
hope and enthusiasm for the Worl
control of sugar production. He is re
turning with the signatures OF seve
exporting countries to his proposition
to bring this control into being
Czechoslovakia, Germany, Poland, Hun
gary. Belgium Java and Cuba
It will take some time TO whip tn
contract into final form, but that's onl
a technical matter, without any pract
cal difficulties viii it work? The mas
sive-framed New York lawyer says
will He believes IL will work, in spit
of the fact that he knows all too we
that such plans have been diSastrou
IN copper. in coffee, in rubber, and pos
sibly in wheat.
Now we'll see what happens
sugar! Five years is the testing periot
The contract is dated to run from Jar
uary ], 1881.
Ccopyright. 1881 by North American New