Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-04
Everybody's
Business
Rise IN Comm odities Nate
rally IMPROVES Senti-
ment in Financial and
Business Circlcs-Wor st
Passed.
BY DIR. MAX wINKLER.

NEW YORK, November 4-Senti-
ment in the financial and business
circles seems to have improved ma
terially. The impressive rise in COM
modities, led by wheat, has contributed
greatly toward bringing about this
change for the better.
While it is true that the problems
still awaiting solution are many and
complex, it is within reason to assert
that the worst is passed. This, of
course presupposeS no untoward oc-
currences either in the United States
or abroad, where the situate is still
fraught with a great deal OF uncer-
tainty.
The series of conferences between
leading statesmen. the reputation of
radicalism by British voters, the
changed attitude on the part of creditor
nations toward intergovernmental debts
and reparations, the cessation of gold
Withdrawals from the United States
on a large scale for the account of
Europeans, the return of confidence as
evidenced by the practically complete
disappearance of boarding and last, but
not least, the thorough liquidation of
both securities and commodities have
prevailing opinion.
Effect on Oil Shares.
Although Improvement in securitie1
prices has been fairly uniform, the Gil
shares would seem to have given q
somewhat more satisfactory account of
themselves nlarketwise. The reason
for the rise in these shares is due to
an advance in the price of Midconti-
nent crude and the belief, that all inn
portant purchasing companies will fol-
low suit.
The advance came somewhat as
surprise because it was thought that
since the heavy consuming season for
gasoline was drawing to close, no
changes would be effected. In regard
to oil shares it is also worth bearing
in mind that the oil industry is one
of the first to feel the effects of the
depression. 1t is not impossible that
oil shares may lead the recovery.
The discount at which the United
States dollar has been quoted on the
leading continental European exchanges
has been reduced very markedly. At
the present time, the dollar in Switzer-
land is quoted at 1902 cents. In Am
sterday, it sells for 1895, followed by
Paris with 9975 and Brussels with
99.74 cents.
It has BEEN figured out that the
Swiss franc is the only currency which
is still above the gold export point
that is to say, Switzerland is still in
position to withdraw gold from the
United States at profit.
However since the Swiss currency
has of late shown certain signs OF
weakness, the quotation slightly above
the gold export point need not be
considered of great significance.
FavorabIy Affected Earnings.
Earnings of Cream of Wheat Cor
poration in coming months should be
favorably affected, according to d. F.
Bull, treasurer.
Commenting upon the decline in
profits during the third quarter, Mr..
Bull points out that the shrinkage
was due to a reduction in price made
as of September !, and especially TO
the refund allowed to customers. This
expense, however, was charged against
the preceding month. and may be re-
garded as a non-recurrent item.
With earnings for the first nine
months amounting to $l.88 share, it
is reasonable to assume that earnings
for the entire year will suffice to cover
in full the prevailing dividend OF $3.50
a share
The metal market is confidently ex-
pected to adjust itself at considerably
higher prices, according to Charlss D.
Mr. Bohn expresses the hope that
his company in the course of time,
should be able to dispose OF its inven-
tory at a profit. The company carries
about S4 000, 900 of metals inventory,
purchased at prices somewhat III excess
of prevailing levels.
Mr.. Bohn also points out that bust
ness fell off considerably in the last
two months and that the expected sea
sonal upturn in September did not ma
terialize. These factors, together with
the curtailment in the motor industry,
BONN Aluminum's principal customer,
doubtless will find reflection in the
company's earnings.
Dole Problem Tackled.
Great Britain's coalition government,
which is predominantly Conservative,
is tackling the dole problem. Changes
are contemplated which are expected
to save the nation about E10,000,0O0 a
year.
As the measures to be taken viii re-
suit in the elimination of considerable
number of those who have hitherto
shared in the dole, it is likely that COM
plications may arise. Whether the
hoped-for Improvement in general bust
ness conditions will be SUFFICIENT TO on
set these is too early to state. -
While small. earnings of the Nflsn
Motors Co. should be considered satis-
factory in view of the general Situation
and the depressed conditions existing.
not only in the United States, blt all