Evening star., 1932-01-06
BY DIR, MAX WINKLER,

BY DIR. MAX WINKLER.
Special Dispatch to The Star.
NEW YORK, January 6.-News from
Europe is somewhat more encouraging.
A Franco-German agreement in regard
to the reparations question is con-
fidently expected. Whether a final So
luton will be reached is as yet diff
ficult to state. Suffice it to say that
the various powers involved are almost
unanimous in regarding the intergov-
ernmental debt problem as one of the
chief obstacles to a genuine and last
ing revival of business.
From other parts of the world news
is less cheerful Difficulties in Japan,
renewal of troubles in India, attempts
to stage new revolt in Argentina and
complications in Honduras are not es-
pecially conducive to optimism.
The effects of these events upon
world economic conditions are not
quite so significant as those on the old
Continent, to which the United States
is much more closely bound, eco
nomically and financially. Although
there may be some more selling OF
Far Eastern and Latin American issues,
the securities market as a whole is not
likely to be affected to any appreciable
extent.
New Finance Corporation.
Further progress is reported in con.
nection with the recently proposed
Reconstruction Finance Corporation.
Capitalization is fixed at $4,000 100000
to be obtained through the sale OF
debentures. In the event that the
latter should prove unstable, the
United States Treasury will buy them
from the Finance Corporation and
issue it's own bonds for that purpose.
Regardless of the method of financ-
ing, the enterprise ought to be launched
at once. The time has come to stop
f1ddling and get the measure passed,
according to Silas Strawn, president OF
the United States Chamber of Com
merce, who regards the creation OF the
corporation as the major need Of the
country at this time.
Stock Written Down.
The man in the street, that is, the
average American was enticed by the
tremendous profits which Wall Street
had held out and who now discovers
that not all is gold that glitters, should
have grounds for consolation. The
powerful Continental Illinois Bank &
Trust Co., whose destinies are guided
by Arthur Reynolds, one of the coun-
trys most competent bankers, finds 1t
necessary to write down 100000
pany to $1-these shares were originally
purchased at cost of $4,000, 900.
Such step, Mr. Reynolds points out,
was deemed advisable in view Of the de-
cline in the market value of securities.
Sees Better Sentiment.
F. e. Williamson, the new head of the
New York Central, directs attention to
the rather gratifying fact that the road,
or its predecessors, has been paying
dividends without break for So con-
inclusive. The period included the
panics of 1873, 1893 and 1921, and the
present depression each followed by
slow recovery. The disbursement for
the entire period averaged So per cent
per annum.
Mr.. Williamson does not as yet see
any change in traffic trend, but he does
note better underlying sentiment He
concludes his observations by express
ing the hope that the 10 per cent VOL
untary wage cut negotiations will be
concluded successfully.
Dividend Reduction.
Declaration by Atchison, Topeka g. |
Santa Fe of S150 for the quarter, as
compared with $3.50 paid previously |
was not surprising. In view of the de- !
cline in earnings reduction was gener- |
ally looked for.
Commenting upon the budget for the
current year, w. B. Storey, president, |
points out that it will amount to $25,- |
100000, which represents carryover
of SIS 100000 for 1881 and $10,000,000 |
set aside for 1882. OF the 1882 figures,
Sc 900, 900 is accounted for by new lines
and $4,000,000 for new work on existing
lines.
Belgian Bonds.
With gold cover of 81 per cent, ru-
mors regarding the possible abandon
ment of the gold standard by Belgium
are entirely groundless. 1t Is also worth
bearing in mind that the kingdom has
no important credits tied up In Ger
many, Russia or Central and South
eastern Europe except for purely trade
credits. These, according to an official
Of the National Bank of Belgium, are
fully balanced by similar credits on for
eign sales in Belgium.
In any event 1t Is difficult to account
for the recession In the price of Belgian
issues listed on the New York Stock
because they are all payable
In United States gold currency Of the
weight and fineness obtaining at the
time Of fiotation.
Government Economy.
Every one Is economizing today, even
Poland, for instance, will
cut expenditures for the current year
(1932-33J from 1886 200, 900 zloty, bud
seted for the past year, to 2,452, 400, 900.
! decline of more than IA per cent.
Revenue is expected to amount to q
,75, 900, as compared with 1880, SOC, 900.
!. loss Of close to Is per cent.
An anticipated surplus for the past
fiscal year of 100000 Zloty turned into
! deficit of 77,400,0o0 zloty. equivalent
% about 100000. If Poland could
zee her way clear to spend less on !
armament, there would be reasons for
expecting a budget surplus or at least ,
equilibrium. In this, however, Poland
ioes not stand alone.
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