Evening star., 1932-02-08
Everybody's
Business
Halt IN Downward Trend Of
Securities Prices Called
Necessary to Restore
Confidence and End
Hoard'ng.
BY DR.. MAX WINKLER.

NEW YORK, February 8 (N.ANA)
1t is sincerely hoped that President
Hoover's efforts to bring out boarded
funds will succeed. At any rate, lead
ers OF business, industry and civic
organizations are pledged to assist the
Nations Chief Executive in his endeavor
to restore hidden wealth to circulation,
by inducing hoarders to invest their
accumulations of capital and thereby
start anew the wheels of industry and
revive employment.
The persistent downward trend in
the price Of many fixed income-b bear
ing securities will have to be arrested
before full confidence can be restored
In this connection, the recently formed
Reconstruction Finance Corporation is
expected to be Of material assistance.
Disturbances abroad continue to
gather momentum The Far Eastern
situation is not improving. Disarm-
ament talk at Geneva is likely to prove
futile, as 1t has proved on previous oc-
casions. A Franco-German rapproche-
ment is still far from being realized.
are not nearer solution than they
have been.
Europes difficulties in meeting her
debts of purely commercial character
are becoming more marked Austria is
likely to emulate her neighbor and
former partner, Hungary, in regard to
her obligations abroad. Indications are
that the former dual monarchy or what
little has remained Of 1t, may request
a moratorium on the various Austrian
government, provincial, municipal and
corporation bonds sold and still abroad.
Uprisings are reported from Latin
America, and the few nations which
have not as yet revolted may do so.
The extent of Americas stake
abroad makes it necessary to watch
foreign developments very carefully.
Lasting improvement in the United
States is to a certain extent contingent
upon what is happening abroad. and
this improvement in turn is dependent
upon a'speedy and reasonable adjust
ment of the political debts including
reparations.
Discussing the business outlook in
general. Walter P. Chrysler, head of the
automobile company bearing his name,
expresses the opinion that "recupera-
tive and corrective forces are at work
which will soon make it possible for
the sun to begin to shine through the
clouds of business uncertainty"
Mr. Chrysler estimates 1882 produc-
tion of automobiles at 10 per cent above
1881 figures 1t would be of interest to
know the current years consumption
statistics, which would prove of more
immediate value than figures relative as
to output.
The discount of about IA per cent at
which Canadian dollars are quoted in
New York is affecting seriously Ameri-
can business. Within recent weeks
large consignments of structural steel
and iron have been taken into Canada
from Great Britain to supply the de-
mands of Canadian manufacturers who
formerly ordered their requirements
from the United States.
Australia was the first country to be
affected by the depression and will be
the first out of trouble, according to
David NJ Dow, official secretary for
the commonwealth in the United
States
While there is no doubt that wish
remembering that Australia actually
has succeeded in overcoming a good
deal of the difficulties. This is to a
certain extent evidenced by the coun-
try's excess Of exports over imports, re-
sulting from the recently introduced
emergency tariff.
Unfortunately the position Of some
Of the constituent states does not ap-
pear to have grown better. This is
especially true of New South Wales,
holders of whose bond are still waiting
for the interest due February l.
Frances penetration into the coun-
tries of her Central and Eastern
European allies continues. Due to the
close political connection between
France and Czechoslovakia, loan of
about $25, 600, 900 Is expected to be
granted the latter, to relieve the coun-
trys treasury, which is short of liquid
funds owing to the prevailing crisis.
The loan, If consummated, is ex-
pected to be secured by lien on the
Czechoslovak tobacco monopoly. subject
to the outstanding per cent loan held
largely by American and British in
veStors.
Tyrol. for years known almost solely
to tourists and mountain climbers, was
introduced to American investors some
six years ago. As result, Tyrol Hydro
electric bonds, guaranteed by the prov
ince and its capital. Innsbruck, are held
in the United States and are traded in
on the New York Stock Exchange.
Holders will be interested to learn
that for the first time in many years
Tyrol will be able to meet expenditure
out Of revenue without resorting to bor-
rowing. The budget for 1892 is con-
fidently expected to balance at 22,-
loo, 900 schillings, equivalent to about
| $3,15O,00O Whether funds will be
transferable remains to be seen.