Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-01-13
Everybody's
Business
Brusn;ng's Remarks Sustain
French Prediction That
Farley at Lausanne on
Jan. Is VIII Be Failure.
BY DR.. MAX WINKLER,

NEW YORK, January 10 (N.A.NA).
Passage by the United States Senate
of the Hoover proposal to create the
Reconstruction Finance Corporation
should be viewed favorably. The over
whelming majority with which the bill
went through is especially gratifying:
It indicates conclusively that official
Washington realizes the seriousness OF
the situation and is doing all it can to
bring about relief
Europe is once again to the fore.
The remarks by the German chancellor,
Herr Bruening, although merely stat
ing what the Basel Committee of Ex-
ports set forth in its reports, seem to
have stirred up the French ire. Paris
papers are capitalizing the situation,
and predict the failure of the Lausanne
conference, scheduled to be held Janu-
airy Is.
While the seemingly new oontro-
versy may affect securities, especially
German and other European issues, 1t
Is difficult to comprehend the sudden
excitement. Those who have read the
Basel report. which bears the signature,
among others, Of M. Rist, eminent
French economist: M. Tranquil, Belgian
copper magnate; Signor Beneduce, 1tal-
ian statesman and economist, and Mr..
I,
that Germany is believed to be unable
at this time to pay both political and
commercial debts.
This Is all Herr Bruening has said.
He may have been somewhat more
emphatic about it, but he is German
and was addressing himself to Germans
New Rail Corporation to Meet.
Within less than two weeks the re-
DO 1rnoI Credit COTn0TQ a
ton will meet for the first time. E. G..
auckland, president. in all probability
will report on the plans of the enter
prise for providing funds Immediately
for the benefit of financially weak
carriers.
It will be recalled that under the
recent agreement to pool revenues from
rate surcharges funds will not be avail
able until about the middle of March.
The Credit Corporation therefore will
perform valuable service in providing
funds Immediately to needy systems
without awaiting receipt of the rate
increase payments This should help
the so-called secondary group Of rail-
road securities.
A proposed per cent tax on auto
mobiles might we'll cut motor sales to
such an extent that in the end less
revenue will be received by national and
State governments than Is being re-
ceived at the present time.
This is the view expressed by B. L.
Hutchinson, vice president and treasurer
OF the ChrySler corporation. Many will
share Mr. HutchiSons attitude, even
though they doubtless realize the stu
pendous task with which the Govern
ment is confronted in balancing the
budget during the present emergency.
New York City Seeks Bond Issue.
New York City, largest and wealthiest
city in the world, seems unable to
secure S20,000,000 for unemployment
relief. Despite the pronounced taxable
wealth within the city, and despite the
latter's tax-levying powers, bankers
maintain that unless rigid economy is
practiced they do not see their way to
market successfully New York City
bonds.
Well said, but one regrets that the
bankers did not advocate rigid economy
when Porto Allegro or San Paulo, Medel-
lin or Buenos Aires, Budapest or De-
breczin, Graz or Innsbruck, Nurem-
berg or Cologne, appeared in the Ameri-
can market for funds. These and
countless other cities were readily &C
commodated. New York will have to
wait.
Bolivia Expected to Pay.
Holders of Bolivian bonds, which are
quoted at 7 or cents on the dollar, or
equivalent to the coupons they bear,
may derive consolation from a state
ment by Senior Abelli, Bolivian Minister
to the United States Bolivia, says the
Latin American diplomat, has never IN
any way questioned the validity of its
obligations or given any intimaticn that
they will not be liquidated in time.
1t may be recalled that Honduras,
another Latin American republic, set
tied with her foreign debtors almost so
years after default. Had Honduras
waited only one more year, such settle
ment would have Synchronized with the
centenary of the country's first default,
in 1927. Hondurans apparently are not
sentimental.
One may confidently expect Bolivia
to pay eventually. When and how re-
mains to be seen. At this moment
prospects are very slim.
Copyright. 1892, by the North American
Newspaper Alliance, Inc)