Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-23
Everybody's
Business
TEMPORARY Modification Of
the British Bank Act Is
Suggested As Hystera
Over Susfens'on of Gold
Standard Subsidies.
BY DIR. MAX wRINKLER.


Special Dispatch to The Star.
NEW YORK, September 23.-The
hysteria occasioned by Great Britain's
drastic step appears to be gradually
subsiding. No one wishes to under
estimate the seriousness of the measure
to which that country has rescrted, out
the feeling seems to prevail that the
event. after it occurs, is less formidable
than the fear which precedes 1t.
A temporary modification OF the bank
act may and probably viii help Great
Britain, but the important thing at
the moment is to find ways and means
of preventing the pound f,om fluctuat-
ing within wide limits, which would be
more harmful to British business than
a lower but stable currency. F1nan-
cial circles appear to be regainlng con-
fidence. and barring any new untoWaro
DEVELOPMENTS, it is hoped that the
senseless sacrificing OF securities may
soon cease.
Unsettiement in the bond market is
still a factor, the importance OF winch
should not be ignored. But, mere TOO,
fundamentals are not needed at all.
and sales are often realized at levels
which border on the fantastic. A
per cent South American provincial
issue on which october interest Is &C
tually on deposit with one OF Americas
important banking institutions sold at
II per cent. In other words, the next
interest payment will approximate 81
per cent of the price.
Laval Report.
It appears that the situation would
be helped appreciably II the STOCK ex-
below a certain figure, be quoted nat,
that is, minus interest. This should 40
away with short selling OF bonds, or
most of It. which has of late been an
important factor in the downward
movement of So-called second grade
issues
The trading fraternity. as well as the
investing public, derived considerable
satisfaction from report that the
French premier. Pierre Laval, might
visit Washington. The United States
and France control most of the worlds
supply of gold, and a meeting between
French and American authorities might
possibly result in the evolving OF a plan
designed to adjust the existing maids
tribution of the yellow metal mas
much as the worlds commerce and
finance depend upon the free circula-
tion of capital, which, in turn, is de-
pendent upon the free circulation OF
gold. 1t is obvious that Franco
American agreement on the gold ques-
ton may conceivably mark definite
turn for the better.
Wage Reductions.
The announcements that the United
States Steel Corporation and the
Youngstown Sheet and Tube Co. VIII
reduce wages Of employees 10 per cent
came at what may be considered the
psychological moment. Few, II any,
viii question the justification Of such a
move which Is fully warranted by ex-
isting conditions in the industry.
The recent standStill as regards steel
purchases due to the uncertainty over
the precise nature of the wage adj
iustment should come to IN end and
while consumers may mold OF orders
awaiting possible concession IN prices,
the situation in general may he said to
have assumed q much more clarified
aspect.
Inasmuch as the proposed reductions
are relatively not as great as would
appear justified by the decline n the
general, price AeTels no. serious objection