Evening star., 1932-01-16
Everybody's S
Business
U. S. Program to Aid Banks
Is Fe1t, According to
Latest REPORT of Federal
Reserve Banks.
BY DR., MAX WINKLER.

NEW YORK, January Is (N.AN.AJ
The Governments program to aic
banks and other financial institution.
throughout the country is beginning te
be felt. According to the latest re-
port of the Federal Reserve Banks
money in circulation has registered 9
decline of s42,000,000, which would
seem to indicate currency gradually i
returning to the banks.
It is also encouraging to observe
that despite a net loss in gold of Sl0,-
5l3, 900 during the past week through
exports and additional ear-marking by
foreign banks, and IN spite OF lower
imports, the gold reserve OF the Fed
eral Reserve banks showed gain o1
well over S16,000000.
Reference was made here recently tc
the possibility of bringing into being
one more fiscal institution to help solve
the many complex economic problems
with which the United States is cen
fronted. 1t appears that the supposl-
ton has proved correct.
A depoSitor's relief corporation is tc
be set up If the Beedy- Thomas bill is
adopted The capitalization OF $780,
900, 900 will be subscribed by the Gov
ernment and the Federal Reserve sys-
TEN. The corporation will issue IL
own securities up to $500 100000, fol
the purpose of anticipating liquidation
of free assets of closed banks to the ex'
tent of half of the contemplated return
U. S. People Would Pay.
In other words, depositors would re-
ceive Immediately about 80 per cent O.
their funds. 1t is, OF course, Wortf
remembering that all the hundreds O.
millions that are proposed in the flna
analysis will come out OF the pockets
of the American people.
No difficulties are anticipated at the
conference between the railway ex-
ecutives and the brotherhoods convened
at Chicago to decide on wage reduc'
ton. A number of companies have al
ready succeeded in making private ar
rangements with their employees.
The latest move in this direction Is
that made by the Bangor & Aroostoos
Railroad, which is not represented in
the wage controversy by the commit
tee of railroad presidents. A 10 per
cent reduction for one year has just
been arranged with all its officials
clerks and shopmen.
Atterbury Hopes for Wage Cut.
Gen. w. w. Atterbury, head of the
Pennsylvania Railroad, is hopeful that
organized railroad labor, as their con-
tribution in helping the country recover
from the depression, will voluntarily Of
fer to accept the proposed wage reduc-
ton of 10 per cent.
The saving, Mr.. Atterbury estimates
would amount to from S200.000,000 to
1925, 100000 year. He adds that II
these hopes are disappointed, the rail-
roads will be compelled to proceed for
mally under the terms of the transpor-
tation act, which will involve regret
| able and harmful delay.
1t has been estimated that the lC
per cent reduction in the wages Of the
| organized employees of the Great North
ern Railway Co. should result in a saw
ing of about s3,6o0,O00. This is
equivalent to about $l.44 on the pre-
| ferred stock of the system (there be-
| ing no common), and compares with
about 81 so expected to be reported fol
the past year on the roads Junior Sc
curity.
If one adds the benefits to be de-
rived from the recently granted freight
| increase, another $l,500,000 will be
available for the carrier, or total Of
we'll over So a share, exclusive of the
roads own operating income.
The outlook for the Great Northern
and its various securities therefore may
be viewed with a considerable degree
of optimism.
One hears very little about the Pull.
man Co. these days. A conservative
investment once, the shares have re-
ceded rather sharply in price, due u
reduction and fear of entire omission
OF dividends. The status Of the com
| pany may be assumed to be dstmctl.
| on the mend. After the 10 per cen
wage cut, some orders are expected tt
be released by the carriers. Pullman
should obtain considerable portion II
| the distribution Of whatever orders ar
| placed for new equipment.
Auto Maker Expects U. S. to Buy.
The last year provided an acid tes
for the management Of financial insti
| tutions as well as business in general
| according to John Ballantyne, preSiden
of the Detroit Bankers Co. He also point
out that those who have made the ad
| iuStmentS necessary to meet changed
conditions can face the future with
good deal of confidence. Mr. Ballan
tyne refers to his own company as hav
ing made such adjustments.
The public is expected to respon'
to the big values that now are bein
offered, in the opinion OF L. A. Miller
president Of the Willys-Overland &C
Mr.. Miller adds that since TIE auto
mobile industry is such big economi
factor, it may result in that buying &C
tivity which will start general busi
ness on its way to normal.
AS a result of the disorganiZation ol
the foreign exchange markets, the diff
culties in carrying on trade and com
merce are increasing Nations face
with currency problems are therefor
resorting to the primitive method @
barter,
Hungary is at present negotiatin
with Austria, Poland and Rumania t
purchase her salt consignments
these countries In return, Hungar
, agrees to ship Austria agriculture
Lpreducts. agricultural machinery
Rumania and wine to Poland.
| (cbpyright. 1882. by the North America
Newspaper Alliance, Inc.)