Evening star., 1932-02-22
Everybody's
Business
Federal Program to Relieve
Economic Situation Held
Just Begun. With Anti
Lav Revision EFFECTED.
BY DIR. MAX WINKLER.


the Nation is confronted, is by no
means over 1t has just begun, In the
opinion of competent observers.
A number Of highly constructive
measures have since been proposed,
and before the effects OF one are over,
new projects are announced. These
have followed one another in rather
rapid succession recently. The Ma
struction Finance Corporation, the
Glass -Steagall bill, the anti-hoarding
campaign, and the curbing of short
selling are among the measures pro-
posed which are designed to end, or at
least alleviate. to a very material ex-
tent, the existing crisis.
What is Washington going to do
next? Some believe that drastic
changes in the antitrust laws are i'm
pending. Others believe that some an
nouncement relative to prohibition may
be next on the agenda. No one knows
definitely, but all are agreed that the
administration is determined to hasten
the return of prosperity, or at least Of
what Is generally regarded as normality.
If, as Is generally believed, resump-
ton Of buying will facilitate a return
Of better days, corporations should set
an example. 1t seems. however. that
each one expects his neighbor to do the
spending. reserving for himself the
preaching.
In passing or reducing dividends, en-
terprises remind their stockholders that
1t Is to their interests as we'll as to
that Of the company in question to
conserve cash at this time Occasional
ly they add that the cash position is
excellent. Why the corporations should
be desirous of conserving cash, exhort-
ing the public at the same time to buy
and bring back prosperity. is difficult
to explain.
Buying rates In. the New York mar
ket for cable transfers payable In for
eign currencies reveals that the dollar
has undergone a slight shrinkage in
centers where the gold standard is still
being adhered to.
In Switzerland the dollar is worth
only 1885 cents. This Is due to the
pronounced increase in the stock of
gold of the National Bank, owing, it
would seem, to the flight of capital
from Central European countries. Swift
zerland does not welcome this condi-
ton because she cannot find suitable
employment for funds. Banks do not
care to accept deposits, with the result
that depositors offer premium for
having their funds accepted.
In Amsterdam the dollar Is worth
1884 cents, in Brussels 99.78 and in
Paris 1882 cents.
Records continue to be established In
international commerce. One of the
reasons for the existence of this situa-
ton is the erection Of tariff walls
which impede greatly the free exchange
Of goods.
Last months trade, as reported by
the United States. Is the lowest since
the war and shows decline of more
than one-third from the January, 1881,
figures. German foreign trade in jan
uary reached the lowest point in more
than generation while Frances COM
merce last month was the lowest since
the stabilization of the countrys cur
rency.
One hears a good deal these days
about defaults on the part of foreign
governments and political subdivisions.
Holders of defaulted bonds criticise ve-
hemently bankers and all those who are
responsible for the sale of such securi-
ties IN the American market. The beam
In their own eyes, many investors con-
venlently ignore. Scores of American
cities have defaulted on their outstand-
Ing Indebtedness and yet no inveStiga-
tions are TO be ordered.
Although holdings by Belgian ma
tionals OF Chilean bonds in complete
default are relatively small, the in
A Protective Committee has Just been
organized, under the auspices of the
Belgian Council Of Foreign Bondhold-
ers Association Beige Ia Defense des
Detenteurs de Fonds Publics) at Ant
werp. The committee is headed by F.
van Roy and includes B. Russeaux, F.
van Nuland and NJ. Walckiers.
Perhaps American holders CT de-
faulted Chileans can obtain protection
from a foreign council. being deprived
OF the aid which would accrue to them
from an American council of foreign
bondholders, yet to be formed.
France is beginning to have her trou-
bles. Industry and commerce are feel
ing the depression keenly.
In order to relieve the pressure, the
government has decided to intervene
To this end the government has organ
I'D the National Credit Corporation
Credit NationaD which will advance
loans and credits to medium sized
financial institutions
FUNDS for this purpose will be de-
rived from the sale of 200, 900 ,000-
franc issue bearing interest at per
cent per annum. Bonds, priced at 99a.
are tax exempt and enjoy the benefit
OF a governmental guarantee.
(Copyrisht. 1882. by the North American
Newspaper Alliance, Inc.l