Evening star., 1933-06-03
PR|CE-F|X|NG PLAN
WILL Be EMF F0RCED
Effects of Industrial RecoV-
cry Act Are AnaIyzed by
Business Leaders.
special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, June 3.-Adaptability
not size, will be governing factor in
future business. Research and selling,
rather than production, will be empha-
sized. Commodity speculation, which
will be so devised as to permit long
term commitments, will overshadow Sc
curity speculation, as there will be a
dearth of high-grade securities.
These are some of the conclusions of
thinkers-not stuffed shirts-in the
fields of business and finance, which
just now are undergoing the most pro-
found changes in American history.
The national industrial recovery act,
which very few business men profess to
understand, temporarily will affect
many individuals through its attempts
to control prices, production and wages.
In the long run, however, economic
laws always control.
Views of Leaders.
Restriction of output and price fix
ing, as bibliograph!eS in the Congress
sional Library show, from the earliest
times have never proved effective for
more than short periods. business
leaders assert that legislators are mot
ignorant of such historical attempts"
but approve Of them now merely for
political expediency."
The views cited herein are from
leaders in various fields. In each case
the writer, who in this instance is
merely summarizing and recording, not
commenting, was compelled to promise
not to quote or use the exact language
of the person interviewed.
Adaptability, rather than size, Will De
the success factor in business over the
next few years. Leaders point out that
they have held hundreds OF new meth
ods and products back until pending
laws are passed. because their plans
involve the complete scrapping OF pres
ent plants as well as machinery. In
one or two cases much praised me-
chanical innovations in Russia Will ap-
pear elemental compared with macnlnes
now ready for the builder here.
Business plans to devote more money
To consumer research and place greater
emphasis on selling and perhaps some
what less on production projects. Col
lections, for instance, under the new
technique envisaged, will be up to the
seller and not to the buyer.
GoId.-There will be an attempt 10
establish a gold bullion market here.
Whether this will be permitted by the
Government is not yet known. II not
there will be an attempt to speculate
in gold beyond American borders.
Securities.-The present Stock Ex-
change ruling on Allied Chemical COT
poration is Just the start of number
of such rulings. Although it may be
necessary to drop a number of securi-
ties from the list, the exchange govern
ors intend to enforce their ideas about
corporate publicity. AS the Curb Ex-
change list has kae11 much reduced, and
will be greSSiy whitfield before Its gov
erning board finishes It's present task,
ana the Stock Exchange list will also
be diminished, the supply of listed Sc
curities will be much smaller.
Commodities.-The passage OF the
truth in securities bill' and the pres
ent Senate investigations will not re-
suit in any immediate flood OF new is
sues. With the credit machinery geared
to a speed never before considered pos
sibls. there will be a dearth of really
high-grade securities, so speculation VIII
be increased in comodities. Com
modify specialists already are endeavor-
ing to devise long term commitments.
Instead of speculating in positions for
a few months or a year, they hope TO
arrange contracts whereby it will be
possible to speculate or hedge over
period of or 10 years. Problems like
crop weather, floods. plaques, droughts,
famines, etc, remain to be solved.
Barter.-Some European delegates to
the World Economic Conference in
London next month will urge a plan
to permit international barter. An
automobile manufacturer in Detroit
could sell his product to an Indian
handler of curry, the machine to be
paid for in five years, but it would be
up to the Detroit seller, not to the In
dian machine buyer, to arrange the
manner in which payments would be
made. In other words, the Detroit
automotive maker would have to find
some suitable commodity to accept in
exchange and then dispose of the COM
modify so accepted.
Commodity Clearing House.
In March, 1881, attempts were made
to establish world clearing house'for
commodities, working on the same prin-
ciple as the average clearing house in
this country does for bank checks or
securities. Some of its proponents pri- |
vately received great encouragement |
from international bankers in leading |
financial centers of the world. The |
bankers even now, however, refuse pub
licly to indorse a world commodity |
clearing house.
(Copyright 1881