Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-19
RAISE IN BRITISH
. BANK RATE URGED
Bank Economist Feels Higher
Charge viii Aid Empires
Finances.
BY JOHN F. SINCLAIR.

BY JOHN F. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, February 19.-Dr. B. M.
, Anderson, jr., economist of the Chase
National Bank, told Chicago audience
last night that the British gold drain to
France does not grow out OF funda-
mental financial weakness but to the
British reluctance to raise the bank rate
and tighten credit in London"
DR.. Anderson still feels that this Is
the right way out for Great Britain,
supplementing it possibly by British
funding loan in France and the United
States.
"A readiustment of this kind would,
moreover put British industry in pos
Sition to share in world business re-
vival when it comes" the doctor said.
IAN infiexible wage scale in one coun-
try is difficult to maintain in chang
ing world
=, France has huge short-time credits
both in London and in New York. she
could embarrasS England at any time
by withdrawing a substantial part OF
these credits and Great Britain knows IT,
This situation has caused great I'M
easiness in banking circles in London
The suggestion of DR.. Anderson Is an
attempt to find a way out.
Plan for Small Investors.
George " Mclaughlin, president OF
the Brooklyn Trust Co, has developed
an interesting plan in connection with
his trust department.
The officials of the trust company ac-
cept funds of $500 or more from its de-
positors. merge them into $4,000 units
and invest the proceeds in diversified
list of securities. 1t is really fixed IN
vestment trust for small investors. Al
though only originated in May, 1929,
has 100 QQ6 units sold
with total investments aggregating about
$11, 100000.
on February 10. this money was in
vested as follows: Bonds, 22.59 per
cent: preferred stocks, ,36.11 per cent;
common stocks, 1888 per cent; mort
cages, 6.3 per cent, and cash 4.o7 per
cent.
The charges for administering the
trusts are very small per cent OF
the principal on entering and closing
out the account and i per cent
annually while it is in force. Under
this arrangement, the holder OF the
trust certificates is allowed to iquldate
and get his money at any time. He re-
ceives, more or less, the amount ne IN
vested, depending upon the market
value of the securities, which the trust
holds at the time of his withdrawal.
This experiment is being watched
with interest by other trust companies
Railroad Expenditure.
Are the railroads slipping? In the
short-haul passenger traffic, yes; in the
long-haul passenger traffic, maybe, ana
in freight traffic, the backbone OF the
business, nc.
Perhaps that is VIII Gen. w. w. At
terbury, president of the Pennsylvania
Railroad announced yesterday that the
Pennsylvania expected to start imme-
diately on the expenditure of some
$175.000,0 600, the whole sum to be ex-
pended within the next two and hall
years instead of being spread over five
years.
complete the electriflcation of all Penn
sylvania lines between New York and
Washington: second, to complete the
new Philadelphia terminal station now
under way: third. to erect a new pas
singer station at Newark and new
bridge over the Passaic River; fourth,
to abandon Manhattan Transfer and
build a new bridge over the Delaware
River; fifth, to make extensive i'm
provementS around Baltimore, and
sixth, to remove scores Of dangerous
railroad crossings
If the action of Gen. Atterbury is in
dicative of what is going On in the
minds of other railroad executives, the
railroad industry should be the one to
lead the Nation out of the depression.
Charles Flint Retires.
Charles r. Flint father of the
i trusts has at last decided to take it
easy. He has announced his retirement
from the business world, in which he
has played so important a part during
the last 40 years.
. During his career Mr.. Flint organized
% of the largest industrial corpora
tons in the United States, including
N1on
United States Rubber Co. and the In
ternational Business Machines Cor
poration. But this is not all of his
work-far from it. He negotiated
treaty between Brazil and the United
q States and sold navy 10 them. He
carried for months letter of credit,
totaling $4,000, 900, for Russia; he
Wright and Wilbur Wright, airplane
inventors, money to allow them to
carry on their valuable work.
1t was two years ago, at the age OF
30, that Mr. Flint astonished Wall
street by going back to work again at
the old office he had made famous
generation before.
But now he has abandoned business
and has resolved henceforth to have a
good time and see the world.
Indian Situation.
The situation in India has improved
as a result of the three-hour conference
which Gandhi had yesterday with Lord
Irwin, the yiceroy Of India. Gandhi
has insisted all alcng that India shall
be free TO handle her own finances.
Great Britain has never consented to
this arrangement.
Nevertheless, all reports coming out
OF India indicate that the severe ten-
sion which has gripped the nation since
the release OF Gandhi from prison has
slackened considerably. Every indica-
ton points to better state of affairs.
That's good news for the business
world.
New York TO India in IL days-this is
the latest news from the airplane front
The l2,000-mile route from San Fran
cisco TO Calcutta has been opened by
the Imperial Always of London. Rapid
freight service from the United States
is expected TO be an important contribu-
ton TO the gross receipts.
Tied up with this will be another fast
freight service from England 10 South
Africa. This is the next route which
will be opened by this same company.
1t probably is no exaggeration to write
that within five years every part OF the
civilized world will be within weeks
reach of every othel part.
Copyright, 1881, by North American News
paper Alliance