Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-19
Everybody's
Business
$500, 900, 900 Gold Re-Sh,f-
From France to u. S. Ex-
bected. Hoover Admin
'strat'or Sets EXAMPLE
for Economy.
BY DIR. MAX WINKLER.

Special Dispatch to The Star.
NEW YORK, October 19.-There are
rumors, apparently we'll founded, to the
effect that France will reship 5000, 000,-
900 of gold to the United States. This
should set at rest fears abroad regard
ing the economic status Of the United
States and put stop to the continued
Withdrawals of funds from New York.
While it is true that the position Of
the dollar is impregnable and that fur
Their substantial Withdrawals could be
effected without impairing America S
currency system to any appreciate eX-
tent, it is nevertheless annoying to be
subjected to constant raids from abroad.
Frances move therefore would be very
helpful in restoring the we'll merited
confidence abroad in the United States.
1t would not be surprising to md
that the announcement of French gold
shipments to the United States will be
made on the day of the arrival in
New York of Pierre Laval, French prime
minister. Such a move should augur
we'll for the succeeding discussions be-
tween M. Laval and President Hoover.
Government Sets Example.
The United States Government is set
ting an example of how to economic.
With a large deficit facing the coun-
try, even meritorious projects can. must
and will be deferred, according to the
Nations Chief Executive. A reduction
of more than IA per cent is to be Ell
fected in the various branches OF serV-
ice ashore, afloat and in the air, as
compared with the original estimates,
and indications are that even further
cuts may be made and put into erect.
The administration is careful not to
introduce measures which might inter-
fere with the aid in expanding employ
ment as long as the unemployment
crisis continues, and points out that the
essential services of the Government
must and will be continued; ana tnaC
such reductions as might be recon-
rended will not impair the services.
Treasury Ruling Helps.
Considerable advantages should be
derived by business from ruling by
the United States Treasury Depart.
ment to the effect that gold notes OF
the National Credit Corporation VIII De
accepted as collateral to secure deposits
of ni,blic moneys Hitherto, only COM
mercial paper and bankers acceptanceS
were available for discount at 80 per
cent of face value.
The same privileges will be accorded
the notes of the corporation. This
should enable the banks. which nave
subscribed to the issue OF the National
Credit Corporation to use their oanK-
ers' acceptances and commercial paper
for discount at the Reserve banks, ana
use gold notes against Government de-
posts.
Even a small gain in the earnings
of industrial corporations at this Time
Iaserues considerable attention. For
the third quarter CT the current year,
du POINT reports an increase In pTohts
of approximately per cent, as COM
pared with the corresponding 1880
quarter on slightly larger number OF
shares.
For the first nine months, the earn
ings per share show Shrinkage OF less
than IA per cent against the same
period last year, when du Pont received
the General Motors extra dividend.
without this dividend the decline In
profits would be appreciably below 7
per cent.
Assets In Liquid Form.
The large city banks, and particular
" those in Boston and New York, are
more liquid today then ever before in
Bucklin, president of the National
Shawmut Bank Mr.. Bucklin ascribes
this condition to the fact that most of
the institutions have seen the present
crisis approaching and have prepared
for it by placing their assets in liquid
shape.
Due to the depression, humanitarian
principles have superseded those of ma
terial and practical nature, according
to. W. X Kellogg, president of the
Kellogg Co.
New machinery, which would have
replaced several hundred women en-
ployes, will not be installed for the
present, under orders from Mr.. Kellogg,
who ADDS that the company's plant
operates now "a hours day on six
hour shifts.
World Watches Pound.
The financial sterilization of the
world depends upon speed stabiliza-
ton of the pound sterling, according
to Joseph M. Caillaux, former prime
minister of France, and negotiator of
the Franco-G German debt. accord.
M. Caillaux. expresses the belief that
an excessive decline in the value of the
pound must be prevented because a