Evening star., 1932-07-06

recent advance IN
commodity prices. N -
The moderate C. Bowie Chipman.
trends has done away with good deal
of the gloom that was prevalent some
weeks ago. Middle Western business
men are looking for no runaway I'M
provement but they believe that busi-
ness. which has been scraping bottom
for so many months, may have passed
the low point and is now ready for q
long, gradual climb.
Men conducting business concerns Of
their own appear to be the most en-
couraged over the outlook in Indiana
and neighboring States, Mr.. Chapman
said He also was told that people
owning their own homes are making
many more small improvements such
as painting papering, developing their
gardens, etc, than was the case few
weeks ago.
Commodity Index Advances.
As forecast by two consecutive ad-
vanceS of Bradstreet'S Weekly Food In
dex and by the more favorable reports
received from many centers in the
United States, BradStreet's Commodity
Index as of July l advanced from
Sc. 1924 to Sc 1886. an increase of z per
cent. This is probably the most encour-
aging factor that has developed in the
past six months-a strong indication
that commodity prices are nearing sta
bilization, Bradstreet's says.
In the list Of LOG commodities there
were Is advances, 40 declines and so
which remained unchanged. The
main items causing the increase were
in the livestock and meat group. Beef,
hogs and mutton advanced enough to
more than offset the decline in the 40
commodities. Copper was another
commodity showing Improvement.
Somewhat contrary to past experience,
Bradstreet's finds the textile group
reaching a new low upon the flrst ad-
vance Of the index. However, the I'M
provement is in the raw material group
entirely, and it is interesting to note
that raw materials usually lead the
wav in major price movement.
This is the first advance that mas
taken place in Bradstreet's index for
over II months.
Fifth District Reserve Notes.
The Federal Reserve Bank of Rich
mond says that the number OF failures
in MAY, 1882 was next to the lowest re-
ported for any month this year, but
exceeded the number of failures in May
of any other year since 1922. May,
1892 liabilities were the lowest for any
month since last October, and were ex-
ceeded by May figures in 10 of the past
13 years 1919, 1920 and 1925 being the
only years in which lower liabilities
were reported in May than were re-
ported for May, 1882.
Between May IL and June Is, this
year. total loans and discounts at the
49 reporting banks declined by $685.
600, loans on stocks and bonds decreas-
ing S8,731 900 and all other loans de-
creasing 81 OPT 900. The decline in
loans during the month was larger than
normally occurs at this season; in fact,
prior to the past two years loans tended
to change relatively little at this time
of year.
The reporting banks increased their
investments in bonds by $8,572.000 dur
ing the past month, and also increased
their reserve deposits at the Federal
Reserve Bank by $1o,849,000 the latter
an unusually large increase which is
probably temporary. Cash in vaults
decreased moderately between May II
and June Is.
The textile industry in the fifth re-
serve district, which held its own better
than many other Industries during the
early part Of the depression, has
recently restricted operations further,
and in some cases mills have been
closed entirely for the present. Cotton
consumption in the fifth district in
May, 1882 totaled 158,464 bales.
Bonds Hold Exchange Interest.
Bonds drew mcst attention in light
trading on the Washington Stock Ex-
change today. The largest transfer
was in Potomac Electric Power Con-
solidated SIS, $4,000 changing hands at
1925. Three $1,000 transactions in
Washington Gas Light 6s, series A,
were recorded, all made at 99 The only
stock sale was in Potomac Electric
Power per cent preferred, a small
lot changing ownership at 108H.
Frank L. Dame, chairman of the
North American Co., said today that
electric power output Of his company's
subsidiaries had shown a marked
uniformity" during the second quarter,
and that the usual seasonal decline was
absent. Substantial fluctuations oc-
CURED in the same period of 1881.
After recovering 20 per cent in three
days from the May 81 bear market low
New York City bank stocks turned
downward the second week of June
Holt, Rose & Troster report in their
monthly compilation. According to the
firms weighted averages, II stocks
closed June 80 at 1857 compared with
May 81 bear market low Of 3l.34 and
June 4, months high, of 1857. Despite
show improvement in price for the
month. First National showed a net
gain Of so points and Bankers and Corn
Exchange also closed higher
Francis NJ Savage. a retired Wash
lngton bank president sailed today
from Baltimore aboard the steamer
Hayre for Scandinavia. While away
Mr.. Savage will visit Russia He has
already made two visits to Russia. the
a IN ~ L,
the former banker expressed a great de-
sire to see Russia again and note the
changes that have taken place in the
past "a years. Mr.. Savage believes that
with intensive farming Russia could
supply the whole world with wheat,
even without the aid Of Czechoslovakia.
On his last long tour, Mr.. Savage
visited India among many other places.
He has visited almost every country In
the world, a tour in Africa being one
OF the most interesting trips he ever
took
At the time of his retirement from
local banking, he was president of the
Central Savings Bank which was pur-
chased by the Security Savings g. Com
mercial.
Cleaned in Financial District.
Raymond G. Marx, controller of the
Riggs National Bank. has written a
most comprehensive pamphlet on the
taxable items included in the new tax
on bank checks, which is being dis
tributed to the banks patrons and
others interested
It is reported that one Of the larger
local banks collected S400 in taxes on
checks in the few days remaining in
June after the new levy went into effect.
The tax runs into real money very
rapidly.
For the third consecutive week whole
sale prices. as measured by the index
Of the National Fertilizer Association,
advanced during the latest week The
advance during the week was smaller
than for either of the two preceding
weeks and was due chiefly to rising
prices Of a small number of important