Evening star., 1932-08-29

Z.
executive secretary of the Radio Manu-
facturerS' Association, who was III
Washington today.
TIE upward movement started, ne
believes. in the Midwest, with the Sale
of wheat at prices several cents hlgher
than the growers had originally eX-
pected to receive. A survey OF the STU
alton made by Mr. Geddes, based on
trips throughout the Middle west con-
vinced him. he said, that the buylhg
movement started there in the smaller
towns where farmers receiving better
prices for their wheat began to spend
first for the necessities, such as ShueS'
overalls, clothing and then gradually
other things.
Crop Prospects.
Merchants. bankers ana oIncIS
throughout this Midwest section: Mf.
Geddes said. now feel encout aS9d aISo
with prospects of good corn crop. even
though the farmers may noi ee' VI. MI-@o
thev should for this COMMONLY. IRON!
his Chicago headquarters Mr. GeddeS
has Travelled extensively and bases ms
oninion on personal conferences with a
large number of manufacturers, puSl-
nessmen and bankers Mr. GedaeS Is
we'll known here in tN National Capt.
tal where for years he was with the
Washington bureau OF the Associated
Press. -,
The radio industry. he reports has
felt improvement from the genera! pick
up. We're not out of the WOODS YET,
but things are definitely better, he SAID
"The curve is mp. Some companies
which experienced their worst months
in July are out Of the red and into the
black already Automobile sets are
going strong, more so in the Middle ana
Far West than in the East. The I'M
provement in August is more than sea-
sonal. We are not getting excited
about it, but things are improving,
People begin by buying necessities first.
and when they begin to buy radios 1t
seems to be a definite sign of better
business generally
Trading on d. C. Exchange.
washington Gas bonds and stock
both figured again today in trading on
the Washington Stock Exchange, prov
ing the most consistent leader on the
board in activity. The IS A of this
company went at 99la, up a fraction
from last prior sale, but sold eff a frac-
tion at $685.. The 6S B turned over at
1O234 fraction up. Potomac Electric
5l2 per cent preferred sold at l03l ?,
same as prior sale.
couraged by record sales on the New
York stock market. are revising consid-
erably upward their estimates of rev.
enue from the Federal tax on security
transfers.
Security transac ctions were at a low
ebb when the tax bill was passed ana
the department put the probable rev.
erue from stock and bond transfers
during the 1888 fiscal year at S20,00O,-
600. But with sales accelerated to pres
ent levels, experts agree the Govern
ment's income from this source will be
much larger
Though total sales from July l to
August "a were 84018,684 shares of
stock, officials say that any exact es-
innate of the tax is impossible until
actual reports from collectors of inter
nal revenue are received
This is because the tax of cents a
share on stock of no par value increases
to 5 cents on shares selling over $40,
while the departments regulations in
some cases fix the tax on a stock GER
tificate for a given number of shares
at the face value of the certificate.
A conservative view of the general
business situation is still persisted in
by the Alexander Hamilton Institute
While higher raw material prices are
essential to a general price recovery, |
says a statement from the institute,
the rise since June is not open to an
unreservedly favorable Interpretation
because 1t was accompanied by an ad-
vance, although less pronounced in the
prices Of finished goods
Such procedure suggests the in
fuence of artificial imitation which may
possibly be developing in view of the !
various measures taken in that direc- |
ton. If artificial initiation proves to |
be the cause of the current upturn in |
the price index, the upward movement |
is in danger of meeting with a serious /
reversal in the not distant future
"A natural and sound price advance !
is dependent upon the elimination of |
the abnormal spread between raw mate !
rial prices and finished goods prices |
through a downward trend of finished |
goods prices as well as through an up
ward trend of raw material prices A |
reduction in the prices of finished goods |
must be made before the purchasing |
power Of raw material producers can
be sufficiently restored to enable manu- |
tacturerS to work at a high enough |
rate to consume that quantity of raw
materials which is necessary to raise
the prices OF raw materials into align
ment with finished goods prices
There is not yet sufficient evidence,
however, to assert. without reservation,
that the recent strength in raw com
modiy markets is not the first step in
the direction of natural and sound
general price advance"
Revival Not Measurable"
The revival in business is mot yet
measurable, according to Standard
Statistics Co. survey of the week.
Business in general reflects little ad-
ditional indication that an advance
movement can Immediately get under
way. Traditionally Labor day marks
the transition point between the leth-
argy Of the Summer and seasonal eX-
pansion in the Fall Whether direct
evidences of revival will be witnessed
Immediately after Labor day this wear
is yet uncertain. Measurement of the
extent Of these influences however,
should be definitely available within
another month
From a broader viewpoint the situa-
ton is favorable in that with stabili-
zation now accomplished, constructive
programs can be inauglEated without
the fear of their being Immediately
sWamped in a broad tide of further
general deflation. At the existing eX-
treme low level Of operations. however
the success Of such measures would
make a noticeable contribution to gen
eral activity"
Heard in Financial District.
L. E. Meany. manager of the real
estate department Of the Federal Amer
lean National Bank & Trust Co.. has
return from vacation.
Corcoran Thorn, president of the
American Security & Trust Co, has
left for his vacation IN New Hampshire
Howard Moran, vice president of the
American Security 65 Trust Co, is leav-
ing TODAY on vacation
Charles E. Howe, treasurer Of the
American Security & Trust Co, re-
turned today from vacation at Mifiin=
town, Pa.
NEW YORK BANK STOCKS