Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-21


practicable. It seems, however, til
sooner or later in the United Sta
undated.
It is earnestly hoped that leaders in
public as well as private life will give
serious consideration to this question
before they may be compelled by circum-
stances to do so. Especially when one
sees that similar happenings abroad are
Immediately attended to with govern
mental agencies coming to the assist
ance of closed institutions, with the re-
suit that the depositors' funds are
safeguarded.
Danish Remedy Cited.
1t may be recalled that when the
Danske Iandmandsbank, one of the
leading banks in the Scandinavian
countries, collapsed, arrangements were
made under the auspices of the Danish
government to rehabilitate the institu-
ton. The depositors did not lose one
cent. Incidentally, Denmark, in order
to carry out the plan successfully. OBJ
tanned q credit from the United States
for that purpose.
enna's largest bank, failed, the Aus
Credit Anstalt, a Rothschild institu-
ton, to absorb the Boden Credit, guar
anteeing the depositors' funds When,
three years later, the Credit Anstalt
got into difficulties, the government,
with the aid of foreigners, including
American bankers, stepped in with the
result that the depositorS lost nothing.
Rumanian Bank Saved.
When banks in Rumania failed, the
National Bank stepped in and worked
out arrangements satisfactory from the
point Of view Of the depositors.
When the Darmstaedter and Ma
tional Bank, Germany's third largest
bank, closed its doors, the German gov
eminent assumed responsibility for the
funds of depositors: and when the
Dresdner Bank required additional
funds to ward OF difficulties. the gov
eminent subscribed to an issue Of pre-
ferTed stock.
Even in New South Wales, place
which in recent months has become
notorious for its failure TO meet con-
tractual obligations, a bill has just been
introduced providing for an issue of
$50 ,0U0, 600 in debe1tures to be used to
assist the state savings bank of New
South Wales, which closed its doors
last April
American depositors are not likely to
continue to view indefinitely with equa-
nimity the steady closing Of banks in
the country with nothing being done
10 actually aid the depositors outside of
ordering Investigations or calling con-
ferences.
A good deal OF the worlds economic
troubles is due to the attempt on the
part of certain individuals TO further
schemes which are economically un-
sound. Even though those sponsoring
them may not be prompted by personal
gain, the fact remains that If effected
they are bound to do good deal Of
damage.
When the veteran bonus bill was In
the process of being adopted. it was
held that the United States Treasury
could not at the time stand the drain.
The advocates of the bill, however,
maintained that the release of funds
would result in an increase in expendi-
ture for productive purposes and thus
furnish a stimulus 10 revival of bust
ness. Although well over billion dol
lars has been disposed of among war
veterans. tfsre Is little If any indica-
tion of any Improvement which can be
traced directly to the passage OF the
bill.
In view Of the above, it is dif1Gllt to
comprehend the renewed efforts of the
national commander of the American
Legion for additional soldier relief leg
islation to be urged at the coming seS-
sion of Congress.
Next month the Baltimore & Ohio
Railway board will meet for dividend
action. AT the June meeting the an
nual rate was reduced from 81 to SIS.
The earnings of the system, together
with the general situation obtaining in
tho railroad field, would not seem to
warrant the maintenance of the pres
ent rate. Furthermore, at current levels
the yield Is well in excess of 10 per
cent, an sbnornlally large return when
with prevailing monetary con-
ditions. Unless something very radical
takes place within the next few weeks |
TO justify continuance of the SIS basis, I
one may look for reduction to So and |
possibly $3.50 a share, at which rate |
per cent.
Billion Dollar Oil Merger.
Through the merger of a number of /
oil companies under the |
direction of the Sinclair interests, there |
In size only the largest of the Stand
ard Oil units, and ranking as the larg-
est independent concern in the |
petroleum industry In the United States. I
have been going for some /
time and 1t was generally felt that
an agreement would be reached One /
more organization has been added to /
The billion-dollar group
Iriasmuch as the combine should /
make possible the introduction Of many |
one may view with GER
tain degree of favor the effect of the
combination upon the companies in
folved, namely, Sinclair, Tide Water
Associated, Prairie Oil 81 Gas, Prairie
Pipe and Rio Grande Oil, and the oil
in general.
Unless the Shut-tn of the oil fields
n Oklahoma and Texas is discontinued,
further advances in the price of gaso-
inc may be expected. A number of /
important concerns have already put
INTO effect an increase. and advances
n the Middle West are predicted in
he near future. It may, perhaps, be
If interest to point out that the de-
line In the output is expected by |
many familiar with the oil industry I
o average 1000 900 barrels daily, of
which East Texas viii account for 10
Der cent, with Oklahoma accounting
or the balance.
Whether it will be possible to defy
or an extended period Of time the
laws of economics by in
with the problem Of supply
md demand is subject TO reasonable
iegxee Of doubt.
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