Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-03
COMMODITY PRICE
RECOVERY IS VITAL
Turn in Business Depends on
Improvement in Raw
Material Values.
Special Dispatch to The Star.

of the stock market rise and whether
ness should watch the commodity mar
kets, where the true story will be told.
There can be no real business recov-
cry until countries producing the raw
materials of the world can operate at a
profit. That is the significance of the
rise in commodity prices. If the rise
holds, the world will quickly recover its
lost prosperity. Copper has advanced
to cents. Most producers in the
United States can operate at profit
when copper is at the 10-cent level.
War Debt Situation.
American financial leaders are show
ing no anxiety over the war debt situ-
alton. They say that while France is
jockeying for position and trying to
drive the best bargain possible, she will
eventually have to concede to President
Hoov S wishes. No government these
business men say, would dare risk the
dangers of again throwing the world
back into the chaos it was in before
Mr.. Hoover made his postponement
proposal.
to tell the story of just how close the
world was to a calamity even greater
than the last war. Level-headed men
know that the depression cannot be
turned into prosperity overnight even
II the Presidents proposal does go into
effect but fear will have been elimi-
mated, and with hope and trust restored
the world will right Itself.
Fear caused the disaster and the
elimination of fear will repair the
damage. Billions of dollars have been
in hiding in recent years because OF
world uncertainties. and when this
money loses its timidity things will
begin to happen in the business world.
Debt Holiday Plan.
w. B. Storey, president of the Atchi-
son. Topeka & Santa Fe Railway, has
said that it was too early to predict
the effect upon busineSsDin this coun-
try of the proposed moratorium. but
he admitted that the attitude OF the
people might change sufficiently later
to cause substantial increase IN the
volume of general business and in rail-
road traffic.
The Guaranty Trust Co., in its
monthly survey issued yesterday SAID
that hopes have been revived for
recovery in business, where doubt and
pessunism had prevailed.
AS a stimulant to constructive Ell
fort and thought" the trust company
says, 1.-The debt holiday proposal may
we'll mark the change in business attl-
tude which precedes and helps vivity
business"
Business in China.
One hears only of wars and raw
aging armies in China and never imag-
ines that country as fertile spot
for the growth of new business enter
prices. Yet China is building its first
newsprint plant at Pichou. on the
upper Sungari, in Huatien Prefecture;
Kirwin Province. When the new mill
hn fret
print paper under Chinese management
in China.
The machinery for the plant will be
ordered from America and negotiations
are already under way with an Amerl-
can firm in Shanghai The Northeast
ern paper mill will be capitalized at
S4 900 600 and work will be started in
the Fall. 1t will begin With the manu-
facture of newsprint at the rate OF
about S4,O00,000 a year. Operations
will be in charge of Mr.. Chin-Kan.
South American Credits.
Any financial assistance extended TO
South America will be done privately
and not through Government channels,
although Washington will loom lmpor-
family in the background, it is believed.
Most of the debts floated by South
American countries in the United states
are public debts and the bonds are In
the hands of American investors. ANY
moratorium declared on such pubic
debts would amount to default ana
therefore could not be put into effect.
What probably will happen is that
the United States Government may
bring pressure to bear on private bank
ers, through the Federal Reserve Banks,
to renew old credits and extend new
ones to South American borrowers. 1t
is believed the Federal Reserve Bank in
Dc
tentative plans for this program.
Sentiment in Street.
There is plenty of sentiment in Wall
Street beneath the hard-boiled crust.
The firm of Harris, Forbes g. Co., the
father of bond houses, moved to its
new quarters in the Chase National
sary by the merger of the firm with
the Chase Securities Corporation.
All day Tuesday the entire staff, off,
GERS and employees alike, were busy
packing and making ready for the NOV
ing vans. Throughout the day members
of other Wall Street houses were call
ing to say good-by at Sc William street.
one of the few old fashioned red brick,
red limestone buildings remaining in
the street, which has BAN the home
of Harris, Forbes & Co. for about 40
years.
The directors of Harris, Forbes &, Co.
held farewell luncheon in the dining
room of the old building. Business has
ben resumed as usual by the firm in its
new quarters at so Cedar street.
Temporary Overproiuction.
With an overproduc ion OF almost
every raw material at present. it seems
rather ludicrous for scientists to be
constantly making experiments to find
new sources of coal, oil, ETC. but it
must be remembered that the overpro-
duction of many raw materials is only
a temporary matter, and some day the
regular sources of supply will dry up.
It is said that as long as the world
lists Nature will provide for the needs
of humanity, in one way or another.
Mr. Edison is experimenting with the
dreaded golden rod in the hope of max
ing synthetic rubber. The Russians and
the Germans are finding thousand
uses for the worlds waste matter. The
Russians have found a new rubber
yielding plant. In the House of Lords
recently, Lord Rutherford, the famous
scientist. recounted an experiment be-
ing conducted in England for the pro-
duction by --arious processes OF oil from
coal. He emphasized the desirability OF
Britain possessing an Independent Oil
supply. and rhis could only be produced
through coal.
Oil from the earth is now being sold
at such low prices that its production
from coal could not be done at an
equivalent cost The situation will
change, however, when oil once again
rises in price.
Britain has tremendous coal reserves.
As a matter of fact. the coal industry
is one of her chief embarrassment
experiments have shown that it is
scientifically possible to provide the
bulk Of the British oil supply from
avsilable coal