cfc_19300705.pdf

financialI.

VOL. 131. [SATURDAY, JULY 5 1930. NO. 3393.

t'inantial CirranultPUBLISHED WEEKLY

Terms of SubscriptionPayable in AdvanceIncluding Postage-- 12 Mos. 6 Mos.

Within Continental United States except Alaska $10.00 $6.60In Dominion of Canada 11.50 6.75Other foreign countries. U. B. Possessions and territories 13.50 7.76The following publications are also issued. For the Bank and Quota-

tion Record the subscription price I. $6.00 per Year: for all the others Is$5.00 per year each. Add 50 cents to each for postage outside the UnitedStates and Canada

CIODAPIONDIUMI MONTHLY PUBLICATIONSPUBLIC Unterr(seml-annually) RANK AND QUOTATION RECORDRAILWAY & INDINITHIAL(fOlIT a year) MONTHLY BANNING' RECORDSTATE; AND Musicirst(eeml-ann.)

Terms of AdvertisingTransient display matter per agate line

5 Cents

Contract sad Card rates requestn4 Owosso OrrxceIn charge of Fred. II. Gray, Western Representative.

208 South La Salle Street, Telephone State 0613.LONDON OvvicsEdwards & Smith. 1 Drapers' (,ardens. London. E. O.

WILLIAM B. DANA COMPANY, Publishers,William Street, Corner Spruce, New York.

PubiLshed every Saturday morning by WILLIAM B. DANA COMPANY;President and Editor, Jacob Seibert; Business Manager, William D. Riggs.Tress.. William 1)ana Seibert: Sec., Herbert 1). Seibert. Addresses of all. Office of Co.

Change of Address of Publication.The Commercial & Financial Chronicle,

having long suffered from inadequatefacilities for handling its growing sizeand growing subscription list, has movedinto new and larger quarters, and is nowlocated at

William Street, Corner Spruce,New York City.

P. 0. Box 958, City Hall Station.

The Financial Situation.While the business situation gives as yet little

indication of any turn for the better, unfavorablefeatures continuing to predominate, there is at leastone favorable development, namely, the adjournmentof Congress. We would not be 'classed with thosewho are constantly decrying Congress and findingfault with its work, especially would we not care tobe included with thor who never cease denouncingthe United States Senate for its lengthy debates anddiscussions, and its deliberate methods generally.We feel that the speed with which measures are onoccasions rushed through the House of Representa-tives, often under the influence of the party whip,and by the application of Czar-like methods, is notconducive to legislation of the best type.In the Senate, on the other hand, there is greater

independence of judgment and of action, and alsoconsideration of new laws from a broader stand-point. This is helpful and tends to insure betterlegislation. The slower and more deliberate meth-ods of the upper House of Congress, we think, areto be encouraged, rather than the reverse. Even theprotracted consideration of the tariff bill, we feel,

has not been without attendant good. It has atleast served to direct attention to some very glaringfeatures, the nature of which would never have be-come known except for the extended discussions inwhich the Senate indulged.However, Congressthe old and the new com-

binedmay be said to have been in almost continuous session since the first Monday in December 1928,the old Congress functioning from that date untilMar. 4 1929, and the new Congress having been con-vened in special session only a short while thereafterand having remained in session up to within a fewdays of the beginning of the regular session in De-cember 1929, and having since then continued itswork right up to the present dine, making altogethera period of 19 months. Moreover, during the wholeof this period it has never been under any distinctleadership or strong guidance, and its action, orlack of action, had created a feeling of uneasiness,which now that Congress is definitely out of theway, will disappear, removing the uncertaintieswhich had prevailed, a state of things which cannotfail to be beneficial. At the least, the threat of fur-ther legislation, possibly of an adverse character,will no longer hang over the community. To thatextent, therefore, the outlook is more assuring.We think, too, the new tariff may possibly, for the

time being, become an instrument of good in thehands of President Hoover and his Administration.The tariff barriers have been raised higher, and thatcertainly does not tend to promote trade by theinterchange of goods. As a matter of fact, the wholeworld is up in arms against the higher duties thatare to be levied upon foreign goods, and reprisalsand retaliatory measures are threatened on everyside. Certainly the news which has come the presentweek from the other side saying that Italy has morethan doubled its duties on imports of American auto-mobiles is not of an exhilarating character. ButPresident Hoover has from the first laid great stressupon the advantages that may be gained from theoperation of the flexible division of the new tariffact. To us it seems that the wide latitude allowedfor appeal to the Tariff Commission, it being left tovirtually anybody and everybody to solicit theservices of the Commission may prove harmful. Wefear that as a result the Commission will all thetime be overwhelmed with requests for the modifica-tion of this rate or that rate by Congress as well asby everyone else, and as a consequence there will beeverlasting uncertainty rather than the stability; andcertainty which is so much needed and so muchdesired.But President Hoover has plans of his own for

giving effect to the flexible provision in its new form,and it is just possible that under his wise guidanceit may prove, at least for the time being, an instru-

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL CHRONICLE [VOL. 131.

ment for alleviating or moderating some of the illeffects that might attend the operation of the newschedules of duties, against which, as already stated,the whole outside world is protesting, and also agood portion of the domestic world. A cablegramfrom Paris, published in the New York "Times" onWednesday of this week is very suggestive in thatrespect. It appears that Ogden L. Mills, Under Sec-retary of the United States Treasury, sailed recentlyfor Europe, managing to escape all publicity, andis expected to arrive in Paris to-day'. This hasnaturally given rise to many conjectures as to thepurpose of .his visit. The "Times" correspondentstated that in well informed French quarters thebelief prevails that Mr. Mills is on an important eco-nomic mission for President Hoover, and that thepurpose of the visit is to inquire into the reactionin France and elsewhere in Europe to the new sched-ules of higher duties. It has been denied that Mr.Mills is engaged in any such mission, and the state-ment is made that he sailed from home simply forthe purpose of taking a vacation.Presumably that is correct, but, being abroad, it

would be strange if the President did not avail ofhis services in precisely the way indicated. Mr.Hoover is quick to think and quick to act, and itmay well be that Mr. Mills' sojourn in Europe willbe availed of to pave the way for changes in thenew tariff act so as to make it less unsatisfactoryto foreign countries. In the statement issued byhim, preliminary to the signing of the tariff bill,he indicated very plainly the broad possibilities hehad in mind. Among other things, he said:

"On the administrative side, I have insisted thatthere should be created a new basis for the flexibletariff, and it has been incorporated in this law.Thereby the means are established for objective andjudicial review of these rates upon principles laiddown by the Congress, free from pressures inherentin legislative action."Thus the outstanding step of this tariff legisla-

tion has been the reorganization of the largely in-operative flexible provision of 1922 into a formwhich should render it possible to secure prompt andscientific adjustment of serious inequalities and in-equalities which may prove to have been incorpo-rated in the bill."The new flexible provision establishes the re-

sponsibility for revisions upon a reorganized TariffCommission, composed of members equally of bothparties, as a definite rate-making body actingthrough semi-judicial methods of open hearings andinvestigation, by which items can be taken up oneby one upon direction or upon application ofaggrieved parties."Recommendations are to be made to the Presi-

dent, he being given authority to promulgate or vetothe conclusions of the Commission. Such revisioncan be accomplished without disturbance to busi-ness, as they concern but one item at a time, and theprinciples laid down assure a protective basis.

"The principle of the protective tariff for 'thebenefit of labor, industry and the farmer is estab-lished in the bill by the requirement that the commission shall adjust the rates so as to cover thedifferences in cost of production at home and abroadand it is authorized to increase or decrease theduties by 50% to effect this end. The means andmethods of ascertaining such differences by the Com-mission are provided in such fashion as should expe-dite prompt and effective action if grievancesdevelop."When the flexible principle was first written into

law in 1922, by tradition and force of habit the old

conception of legislative revision was so firmly fixedthat the innovation was bound to be used with cau-tion and in a restricted field, even had it not beenlargely inoperative for other reasons. Now, how-ever, and particularly after the record of the last15 months there is a growing and widespread real-ization that in this highly complicated and in-tricately organized and rapidly shifting economicworld the time has come when a more scientific andbusiness-like method of tariff revision must be de-vised. Toward this the new flexible provision takesa long step."The complaints from some foreign countries that

these duties have been placed unduly high can beremedied -if justified by proper application to theTariff Commission."I believe that the flexible provisions can within

reasonable time remedy inequalities; that this pro-vision is a progressive advance and gives great hopeof taking the tariff away from politics, lobbying andlog-rolling; that the bill gives protection to agricul-ture for the market of its products, and to severalindustries in need of such protection for the wageof their labor; that with returning normal con-ditions our foreign trade will continue to expand."

President J. M. Kurn, of the St. Louis-San Fran-cisco RR., has coined an expression which is highlydescriptive of the situation prevailing in the indus-trial world to-day. After talking in a very encour-aging way of the outlook for the company of whichhe is the head, he was questioned on the tariff andreplied by saying that although a few industrieswould benefit, he was of the opinion that "legislatedprosperity" was economically unsound. That is pre-cisely what is ailing the world to-day. There are toomany attempts at "legislated prosperity"and toomany schemes to accomplish by artificial meanswhat cannot be obtained by natural means. Thetariff is a conspicuous instance of attempts at "legis-lated prosperity." And the attempts are not con-fined to government or to the United States alone.The copper trade has the present week again falleninto a state of demoralization, the price of coppernow being down to 11y2c., without attracting anybuying orders of consequence. Here we have an in-stance where private individuals, namely, the copperproducers, undertook to maintain artificially highprices and then, having failed in the attempt andlost their market, are now paying the penalty.Cuban raw sugar has the present week touched anew low level in all time, the July option for sugarhaving on Wednesday fallen to 1.22c. per pound.Here it was attempted for a long time, through theintervention of the Cuban Government, to hold upthe price in the face of excessive supplies, and theattempt signally failed, as it has in so many otherinstancesrubber for example. Then, what is theFederal Farm Board engageein doing but seekingto hold wheat and cotton at levels not justified byprevailing conditions, even though it must be ad-mitted that prevailing prices for both staples wereeven before the present month's further collapse atabnormally low levels. What is the result? Wheatat Chicago drops over 20c. a bushel during June, tothe lowest level reached in 16 years, and cotton loses3c. per pound more.The time has now arrived for getting back to first

principles. Prices must be allowed to take their nor-mal, natural course. There can be no return ofprosperity until this is done. The country is suffer-ing to-day not only from the after results of the stockcrash of last autumn, but from a multiplicity of


JULY 5 19301 FINANCIAL CHRONICLE 3

attempts to bolster by artificial means what can notbe sustained in the ordinary way. Now that Con-gress is out of the way as an unsettling influence, thetime has arrived for grappling with the problem ingood earnest. We are glad to see that this truth isbeing recognized and expression given to it in afrank, outspoken way. One of the latest utterancesof the kind is contained in the current bulletin ofthe First National Bank of Boston. Among thecauses that may be retarding recovery, in the opinionof the Bank, are artificial efforts to prevent furtherdeclines in the prices of commodities by price fix-ing schemes and cartels and the "belated decline" inretail prices which have not kept step with the re-duction in wholesale quotations. "The world hasbeen suffering from a superabundance of commodi-ties, in relation to effective demand," says the Bank,which asserts that the world commodity prices havebeen receding gradually since 1925, and that thesedropped rapidly in the latter part of last year fol-lowing the business recession in this country. Theliquidating process now under way is reported by theBank to be bringing supply into more normal rela-tionship with market requirements but the defla-tionary movement has been stifled somewhat alongthe way by price-fixing schemes. "These," continuesthe Bank, "may stem the tide for a while, but in thelong run they will tend to aggravate matters by pro-longing the liquidating process." Failure of retailprices to follow closely on wholesale reductions, it isargued, "means that the great army of producers,including manufacturers, farmers and practically allthe principal raw material producing countries, havehad their purchasing power sharply curtailed; pricesof goods they sell in the world's market have droppedconsiderably more than the prices of goods they pur-chase. "As a result, world supplies are not being asrapidly depleted as they would be if a better pricerelationship existed. Right prices, after all," it iswell "are those that move the goods. Stocks,especially of foodstuffs in the hands of consumersand retailers, are in many instances very low, withthe result that any sustained buying movementwould likely witness a rapid depletion of commodi-ties in producing centers."

the new Federal Reserve bill buying rate will at-tract a number of offerings to the bank of issue."The new buying rate did attract the bills. Fromthis week's Federal Reserve statement it appearsthat the Reserve Banks increased their own holdingsof acceptances by $55,172,000, and added $17,627,000to the holdings of their foreign correspondents, mak-ing $72,799,000 that they took over. But why shouldthe Reserve Banks stand ever ready at hand for thispurpose? Why force the rate still lower when it isalready lower than it should be? Anyway, who getsthe benefit of these artificially low money rates?Is it the ordinary merchant or .business man, oryet again the much oppressed farmer? Everyoneknows that these questions carry their own answer.But, as appropos, we may note that Arthur Rey-nolds, Chairman of the Continental Illinois Bank &Trust Co., recently made the point that the ex-tremely easy money in the cities does not mean simi-lar ease in the country. "One factor which holdsback farm buying," he said, "is relative tightness ofmoney outside of the leading centers. Money may beeasy for some purposes in big cities, but when thefarmer goes to a country bank asking for loans forvarious purposes, he does not find it so easy."

The Federal Reserve Bank of New York on Tues-day further reduced its buying rate for bankers' billswith maturities of from one to 45 days to 17/870.This is another instance of a departure from correctprinciples. Why should the Federal Reserve Bankkeep underbidding the market, when bills get downto such abnormally low figures? When money ratesrule low beyond all reason, why should the ReserveBanks step in and by their operations accentuate theease. Governor Young of the Federal Reserve Boardhas recently told us that Federal Reserve credit is"high powered." Why should this high poweredcredit be put afloat when there is no need for it andwhen the low money rates so plainly demonstratethat the ordinary banking credit is in superabundantsupply and that, therefore, "high powered" Reservecredit should be withheld. We notice that the NewYork "Times," in its news columns, in referring tothis latest lowering of the Federal Reserve buyingrate, says: "The firming of call money rates inci-dent to the end of the month demands, has compelleddealers in the past few days to pay more for fundswith which to carry their portfolios than the billsthemselves yield. Consequently it is expected that

Two statements of brokers' loans have made theirappearance the present week, and they both testifyin a most emphatic way to the liquidation which hasbeen in progress on the Stock Exchange for the lasttwo months or more. One of these statements is theStock Exchange's own compilation for the evenmonth, which closed on Monday (June 30), and theother is the regular weekly report of the FederalReserve Bank of New York for the week ending Wed-nesday nightthis time July 2. The Stock Ex-change return always deals with larger totals, beingmore comprehensive in scope. It shows a contrac-tion for the month of June of over a full billiondollars, the exact amount of the shrinkage being$1,020,120,623. This, moreover, follows $315,299,447decrease during May, making a contraction for thetwo months combined of $1,335,420,070. This is cer-tainly a remarkable record of reduced borrowingon the part of the Stock Exchange, and it has onlyonce in the past been surpassed for magnitude ofamount, namely, at the time of the stock marketcrash last autumn, when the total of brokers' loansduring October and November shrank in amount ofover 21/2 billion dollars4The weekly Federal Reserve figures of brokers'

loans are the same in character, even though notquite so large. For the week ending July 2 therehas been a further decrease in amount of $197,-000,000. This follows $371,000,000 decrease the pre-vious week, $211,000,000 decrease the week preced-ing, and $103,000,000 decrease the week before, mak-ing a contraction for the four weeks combined of$882,000,000. The feature noticed in previous weeksfor a long time past is again in evidence, by whichwe mean that the bulk of the falling off is in theloans made by the reporting member banks for out-siders. For the latest week the loans made by thereporting member banks for their own account showa decrease of $54,000,000, while the loans made foraccount of out-of-town banks fell off $59,000,000,and the loans "for account of others" $83,000,000.The changes here indicated find still more strikingreflection when comparison is made with the figuresfor the corresponding date a year ago, or on July 3


4 FINANCIAL CHRONICLE [Vox,. 131.1929. The grand total of these brokers' loans inthe three categories combined now stands at only$3,219,000,000 as against $5,769,000,000 on July 31929, showing a contraction of over 21/2 billion dol-lars. In face of this big reduction in the grand totalof brokers' loans, the loans made by the reportingmember banks on their own account actually in-creased from $1,255,000,000 to $1,710,000,000. Onthe other hand, the loans for account of the out-of-town banks are down from $1,580,000,000 to $654,-000,000, and the loans for account of others from$2,934,000,000 to $856,000,000. The two outsideclasses of loans together foot up only $1,510,000,000now, against $4,514,000,000 on July 3 last year. Theexplanation for the change is found, as previouslyexplained in these columns, in the fact that with callloan rates so low as they now are, the outside lendershave retired from the brokers' loan business and thebanks have been obliged to take over the loans sur-rendered.In the case of the statements of the Federal Re-

serve Banks, there are three distinct features thepresent week. In the first place, there has been abig increase in the holdings of acceptances purchasedin the open market. We have alluded further aboveto the fact that the Reserve Banks further loweredtheir buying rate for acceptances the present week,cutting the rate to 17/8%. Evidently this latest re-duction sufficed to give the Reserve institutions asupply of bills. At all events, the acceptance hold-ings of the 12 Reserve Banks increased during theweek from $102,313,000 to $157,485,000. The Re-serve Banks during the week also further enlargedtheir holdings of United States Government securi-ties, the total of these having increased from $576,-970,000 to $595,953,000. On May 28 the holdingsof Government securities stood at $529,770,000. Inthe five weeks since then, therefore, the addition hasbeen over $66,000,000. At the same time the mem-ber banks increased their borrowing at the ReserveBanks, the volume of discounted bills having risenduring the week from $231,505,000 to $260,413,000.Altogether, the result has been to increase in amountof $105,000,000 the volume of Reserve credit out-standing during the week. With money ratesalready so low that the Reserve Banks felt it in-cumbent to lower their buying rate for acceptancesto 17/8%, the Reserve authorities evidently wantedto make sure that this extreme state of ease shouldnot be interfered with, and with that idea in mindthey made the large addition already indicated tothe volume of Reserve credit outstanding. The totalof Federal Reserve notes in circulation was in-creased during the week from $1,402,869,000 to$1,432,252,000, while gold reserves fell from $3,059,-174,000 to $2,993,409,000. It should be noted thatthe Reserve Banks, besides increasing their ownholdings of acceptances in amount of $55,172,000,also increased the aggregate of the holdings of ac-ceptances purchased for their foreign correspond-ents in amount of $17,627,000, making altogether$72,799,000 of acceptances that they took over dur-ing the week.

The stock market this week, with the approach ofthe Independence Day holidays, and the Stock Ex-change closed both Friday, July 4, and Saturday,July 5, has been a dull affair, with speculative deal-ings light and trading otherwise limited. With busi-ness thus restricted there has been no resumption

of the downward slump in prices; on the contrary,values have held relatively steady, and in most ofthe active issues there has been somewhat of anupward reaction, as a result of which a very smallportion of the antecedent heavy losses were recov-ered. The market, however, is very narrow exceptin the issues actively dealt in from day to day. Inthe case of stocks only occasionally dealt in the saleof a few hundred shares has sufficed to bring aboutfurther sharp breaks in prices, with declines of 5points, 10 points, and even 15 points in some minorinstances. For the general list, the level of valueshas been well maintained, and in most cases some-what improved. The week's developments regardingtrade and business have been mostly of the same un-favorable nature as for a long time past. For in-stance, the "Iron Age" reports that steel mill opera-tions are now at the lowest rate for the year, withingot output for the country averaging only 60% asagainst 64% a week ago. The "Age" observes thatas July 4 is one of the two holidays in the year thatis generally observed by industry, many expectoperations to decline further and drop as low as50%. The United States Steel Corp. is operating at70% of capacity against 72% a week ago. Raw cop-per has also again been falling into a demoralizedstate, and naturally the copper stocks have not beenbenefited thereby. Call money rates, owing to prepa-rations for the large first of July interest and divi-dend disbursements, at one time touched 3% asagainst 11/2@2% last week, but on Thursday wasback to 2%. The following stocks touched the low-est figure of the year the present week.

STOCKS MAKING NEW LOWS.Railroads--

Atlantic Coast LineManhattan Elevated modified guar.Peoria & EasternSt. Louis-San FranciscoSouthern Railway

Industrial and MiscellaneousAmerican Brake Shoe & FoundryAmerican Commercial AlcoholAmer. La France dr FoamiteAmerican LocomotiveAmerican Rolling MillAmer. Solvents & ChemicalBritish Empire SteelButte Copper & ZincCelotex Corp.Chesapeake Corp.City Ice & FuelElectric Auto-LiteElk Horn CoalE. I. du Pont de NemoursEureka Vacuum CleanerGamewell Co.Gillette Safety Razor

Industrial h Miscell. (Concluded)Gimbel BrothersHoudaille-Hershey class BHupp Motor CarIndustrial RayonInternational Printing InkInternational Salt newInternational SilverJohns-ManvilleJordan Motor CarMarmon Motor CarMcLellan StoresMinneapolis-Honeywell RegulatorMoto Meter Gauge & EquipmentNational Department StoresPeerless Motor CarPittsburgh CoalSimmons Co.Spencer, Kellogg & SonsThatcher ManufacturingTimken Roller BearingUniversal Leaf TobaccoU. S. Smelt., Refining & MiningVadsco Sales

The volume of trading has kept steadily dwin-dling. At the half-day session on Saturday last thesales on the New York Stock Exchange were only586,590 shares; on Monday they were 1,843,050shares; on Tuesday, 2,278,850 shares; on Wednes-day, 1,231,130 shares; on Thursday, 1,384,250 shares.Friday was Independence Day, and a holiday. Onthe New York Curb Exchange the sales last Satur-day were 267,100 shares; on Monday, 571,500 shares;on Tuesday, 556,400 shares; on Wednesday, 442,600shares, and on Thursday, 406,600 shares.As compared with Friday of last week, net gains

quite generally appear, though interspersed withsome losses as exceptions to the rule. Fox Film Aclosed on Thursday at 40% against 40 on Friday oflast week; General Electric at 67 against 66; War-ner Bros. Pictures at 411/2 against 401/2; Elec. Power& Light at 671/2 against 651/4; United Corp. at 31%against 30%; Brooklyn Union Gas at 126 bid against124; American Water Works at 83% against 82%;North American at 943% against 921/2; Pacific Gas &


JULY 5 1930J FINANCIAL CHRONICLE 5

Elec. at 551/4 against 5534; Standard Gas & Elec. at90 against 89%; Consolidated Gas of N. Y. at 106%against 102%; Columbia Gas & Elec. at 625/8 against61%; International Harvester at 8214 against 827/8 ;Sears, Roebuck & Co. at 627/8 against 611/8; Mont-gomery Ward & Co. at 34% against 327/8 ; Woolworthat 571% against 531/2; Safeway Stores at 79% against78; Western Union Telegraph at 162% against 160;American Tel. & Tel. at 207 against 20614; Int. Tel.& Tel. at 43% against 42%; American Can at 117%against 115%; United States Industrial Alcohol at68% against 63; Commercial Solvents at 22%against 22; Corn Products at 921% against 927/8;Shattuck & Co. at 37% against 33%, and ColumbiaGraphophone at 1714 against 181/8.

Allied Chemical & Dye closed on Thursday at 255against 262% on Friday of last week; Davison Chem-ical at 2714 against 26%; E. I. du Pont de Nemoursat 1001/8 against 1031/8; National Cash Register at47 against 47%; International Nickel at 24%against 24; A. M. Byers at 717/8 against 71; Sim-mons & Co. at 2314 against 2414; Timken RollerBearing at 57% against 61; Mack Trucks at 52%against 51; Yellow Truck & Coach at 25 against24'7/8; Johns-Manville at 7714 against 76; GilletteSafety Razor at 63% against 69; National DairyProducts at 49 against 48%; National Bellas Hessat 9% against 9/8; Associated Dry Goods at 361%bid against 33%; Lambert Co. at 827/8 against 80;Texas Gulf Sulphur at 52% against 51%, and Bol-ster Radio at 314 against 31/8.The steel shares have not failed' to share in the

general recovery, notwithstanding the further con-traction in the steel business. United States Steelclosed on Thursday at 1577/8 against 155% on Fri-day of last week; Bethlehem Steel at 79% against78%, and Republic Iron & Steel at 41% against 39.The motor stocks are also generally higher. GeneralMotors closed on Thursday at 40% against 38% onFriday of last week; Nash Motors at 33% against01%; Chrysler at 27% against 25%; Auburn Autoat 97 against 98%; Packard Motors at 137/8 against1314; Hudson Motor Car at 301/8 against 28%, andHupp Motors at 137/8 against 13%. The rubberstocks are irregularly changed. Goodyear Rubber &Tire closed on Thursday at 57 against 57 on Fridayof last week; B. F. Goodrich at 25 against 25%;United States Rubber at 211/2 against 20%, and thepreferred at 421/8 against 41%.The railroad stocks have moved slightly higher.

Pennsylvania RR. closed on Thursday at 74%against 71% on Friday of last week; New YorkCentral at 159 against 155%; Erie RR. at 39%against 381/g; Del. & Hudson at 152 against 149;Baltimore & Ohio at 10214 against 101; New Havenat 101 against 100%; Union Pacific at 207 against20234 ; Southern Pacific at 114% against 111; 3fis-souri-Kansas-Texas at 35% against 35%; MissouriPacific at 6014 against 62%; Southern Railway at921/8 against 92%; St. LouisSan Francisco at 881%against 891%; Rock Island at 98 against 97%; GreatNorthern at 79% against 74, and Northern Pacificat 72% against 71y8.The oil shares also show slight improvement, but

have otherwise been without special feature. Stand-ard Oil of N. J. closed on Thursday at 65 against 64on Friday of last week; Simms Petroleum at 211%against 20; Skelly Oil at 2914 against 29%; AtlanticRefining at 351% against 34%; Texas Corp. at 51%against 51; Pan American B at 581% against 567/8;

Phillips Petroleum at 32 against 31; Richfield Oilat 16% against 157/8; Standard Oil of N. Y. at 32against 30%, and Pure Oil at 2034 against 20.The copper stocks have often lagged behind. Ana-

conda Copper closed on Thursday at 50 against 50on Friday of last week; Kennecott Copper at 38%against 38%; Calumet & Hecla at 15% against 147/8;Andes Copper at 22% against 23%; Calumet & Ari-zona at 517/8 against 527/8; Granby ConsolidatedCopper at 217/8 against 20%; American Smelting &Refining at 591/8 against 571/8, and U. S. Smelting &Refining at 18% ex-div. against 19%.

Extremely dull and slightly irregular stock mar-kets prevailed in all the important European finan-cial centers this week. The important half-year set-tlements were consummated with ease in every case,with indications of monetary strain entirely absent.The markets remained quiet, however, as the imme-diate business prospects are poor in all the indus-trial countries. Unemployment in Britain is steadilyincreasing and the 2,000,000 mark forecast for nextautumn is likely to be reached much before thattime. Latest figures indicate that 1,885,300 are un-employed out of the 12,000,000 registered work-people, an increase of 110,193 in the preceding fort-night. The total is now 762,587 more than a yearago. Revenue returns of the British Governmentfor the fiscal quarter ended June 30 are reflectingthe developments by a sharp drop, causing perturba-tion in both official and business circles. In Ger-many conditions are similarly gloomy, notwithstand-ing a slight decrease in unemployment in June. Re-ductions in wages have been general in the Reichsteel industry. Conditions in France remain un-changed with money extremely abundant and busi-ness fairly well maintained. Reports from Italy arebrief and fragmentary, but it is apparent that con-ditions are poor with stocks on the Milan and Romemarkets steadily declining. Spanish markets havebeen upset by the sharp drop in the peseta. Steady de-clines in the prices of the important commodities arecontributing heavily to the depression in all markets.The London Stock Exchange was fairly confident

at the start, Monday, but some irregularity devel-oped in the course of the session and changes at theclose were not important. The gilt-edged list wassteady, while slight improvement took place amongthe international issues. No public interest wasmanifested in the British industrial section andprices changed but little. The tone was better Tues-day, but trading remained very moderate. The An-glo-American issues gained slightly while the gilt-edged list also improved owing to a sizable reinvest-ment demand occasioned by the half-year dividenddisbursements. Home rails were soft and Britishindustrials almost motionless. After the close of themarket announcement was made in London by thedirectors of Cables & Wireless, Ltd., that they areunable to recommend payment of any dividend onordinary stock for the period to December 31, 1929.This development caused heavy selling of the stocksof the company Wednesday and they dropped to rec-ord low levels. The session otherwise was quiet,with the gilt-edged section firm while other depart-ments were quiet and virtually unchanged. Oilstocks were firm in Thursday's session at London,as several favorable company reports were issued.Gilt-edged issues also were well maintained, but themarket otherwise was quiet and dull.


FINANCIAL CHRONICLE [VoL. 131.Pronounced ease in the month-end settlements on

the Paris Bourse gave tone to the dealings on thatmarket in the initial session of this week and priceswere well maintained, with some issues showingfurther improvement. Business remained small,however, and the buying disappeared almost entirelytoward the end of the session, causing slight declines.Bank stocks remained firm throughout, with Bankof France shares the leaders of the group. Fewtransactions were registered on the Bourse Tuesday,but selling orders appeared in somewhat greaternumbers than buying orders and prices slippeddownward. Bank stocks and the international is-sues were irregular, but electrical, steel and coalstocks sold off steadily and closed at the lows forthe day. The dullness continued Wednesday with alittle forced liquidation in evidence, bringing fur-ther declines in quotations. Purchasers were hesi-tant and prices at the close were again at the lowsfor the session. Movements were irregular in Thurs-day's dealings at Paris.The Berlin Boerse was steady and moderately ac-

tive Monday on the unaccustomed ease in effectingmonth-end settlements. Industrial issues such as I.G. Farbenindustrie were active and higher, and im-provement was also registered in the prominent elec-trical stocks. Increasing interest by the public inbonds and preferred stocks was reported. The open-ing Tuesday was again firm, with improved reportsfrom New York a factor. As the session progressedbusiness declined and stock prices also dropped, wip-ing out the early gains. A few issues which are ex-pected to benefit from the liberation of the Rhine-land maintained their improvement. Some demandfor artificial silk shares was reported from Switzer-land and these issues advanced a few points. Thedullness at Berlin was even more pronounced Wed-nesday and prices continued to decline in the earlypart of this session. The downward movement washalted later, however, with Reichsbank shares lead-ing the recovery. Net changes resulting from thesefluctuations were small. Prices were again soft inThursday's session.

An event of outstanding importance in the post-war annals of Europe took place Monday, June 30,when the last French soldiers departed from theoccupied German territory after a progressive evac-uation that had extended over the several previousmonths. Four companies of French infantry com-prised the last remnant of the occupation forceswhich rumbled out of the Mainz railway station in atrain of fifteen coaches. The French Tricolor waslowered noon from the Grand Ducal Palace in Mainzwhich since 1918 had been the French military head-quarters. General Guillaumat, commander-in-chiefof the former Allied Rhineland Armies, received theflag and after turning over the military head-quarters to the German authorities, he also departed.At Wiesbaden, just across the Rhine, the British,French and Belgian colors were lowered from theroof of the headquarters of the Interallied Rhine-land Commission. Crowds of Germans watched thedisappearance of these last emblems of the occupa-tion, but they confined themselves to a few approv-ing shouts and the singing of patriotic songs. Theliberated cities were immediately bedecked in thecolors of the German Republic, however, and laterin the day uniformed police arrived to take overthe work of policing the towns. At night bells and

whistles and booming guns marked the start of amore general celebration, while all along the his-toric river bonfires flared. A significant develop-ment followed Tuesday, when mobs in the town ofKaiserslautern engaged in summary reprisalsagainst German leaders of the Rhineland Separatistmovement fostered by the French several years ago.Three Separatists were injured and their homes orplaces of business destroyed.Evacuation of the Rhineland was thus completed

in accordance with the general settlement of prob-lems growing out of the World War visualized byleaders of the European nations who conferred pri-vately to this end at Geneva in September, 1928. Thescheme called for the definitive settlement of thereparations problem and the subsequent withdrawalof Allied troops from the Rhineland. Foreign Min-ister Briand of France referred to the project fromthe beginning as the "final liquidation of the WorldWar." Dr. Gustav Stresemann, fornier Foreign Min-ister of Germany, and M. Briand are universally re-garded as the prime movers in the broad plan whichnow is consummated. The Young plan, embodyingthe desired settlement of reparations, came into fulllegal operation in May and the way was thus openedfor the liberation of occupied territory. Under theVersailles treaty this occupation might have beenextended to 1935, and even beyond that date if Ger-many failed to live up to her treaty obligations. Pro-visions for hastening the evacuation was also madein the treaty if Germany complied with her under-takings before the expiration of the fifteen yearsoriginally set and this she is considered to have donein accepting the Young plan. In a very real sense.therefore, the project now completed marks a turn-ing point in European affairs.A few misgivings were expressed in Paris regard-

ing the end of the military occupation, largely on thebasis of France's concern with her national security.Some Paris journals professed to discern hopes ofrevenge on the other side of the Rhine. Other formerAllied countries had withdrawn their forces monthsago, and in these the withdrawal of the last Frenchtroops was regarded with complacency. In Germanyrejoicing was general at the approaching end of theoccupation, and when the hour of liberation arrivedorations, resolutions and exchanges of felicitationswere well-nigh universal. In a speech before theReichstag late last week, Foreign Minister Curtiusdeclared that with the imminent complete evacua-tion of the Rhineland, Germany's foreign relationswere entering upon a new phase. He gave assurancethat the Reich would seek to achieve its future objec-tive through peaceful methods only. His own nextobjective, he added, is the friendly settlement of theSaar question between France and Germany. Nu-merous tributes were paid in Germany to the lateGustav Stresemann, whose unwavering faith in thepolicy of European reconciliation was a factor ofinestimable importance in bringing about the Youngplan of settlement and the Rhineland evacuation.Official German figures were given out at the sametime, showing that the costs of the occupation fromthe Armistice to its termination Monday were ap-proximately 6,500,000,000 marks. The area occupiedembraced 31,000 square kilometers with a populationof more than 6,000,000.Foremost among the official acts of the German

Government in recognition of the evacuation wasthe issuance by President Paul von Hindenburg of


JULY 51930.1 FINANCIAL CHRONICLE 7

a proclamation to the German people. This proc-lamation, signed also by all the members of theCabinet, called the occasion one for hopefulness,"notwithstanding the clouds that continue tothreaten the political and economic existence of Ger-many." Evacuation of the Rhineland fulfilled thedemand of all Germans, after long years of hardshipand waiting, the document stated. Noteworthy inthe proclamation as indicating again the probablenext step of German diplomacy, a Berlin dispatchto the New York Herald Tribune said, was the in-clusion of greetings to "our brothers in the Saardistrict who still await their return to the mothercountry." No stone will be left unturned to makethis reunion speedily a reality, it was indicated. TheGovernment in Berlin also celebrated the evacuationby holding a special Reichstag session at which PaulLoebe, President of the Parliament, read the saluta-tions of that body to the Rhinelanders. A militarysalutethe first heard in Berlin since the war endedwas fired Tuesday by a Reichswehr artillery com-pany, and this, together with the pealing of bellsthroughout the land, marked the end of the cele-brations.

With the special session of the United States Sen-ate for consideration of the London naval treatynow imminent, attacks on the agreement were con-tinued this week by the small but articulate mi-nority opposed to it. Three members of the SenateForeign Relations Committee who have voiced oppo-sition to the treaty made public last Sunday an ex-haustive minority report in which the pact wasroundly condemned. Declaring that they preferredto "trust the defense of America to those upon whomit rests in time of peril," rather than to "hystericalinternationalists whose thoughts are with any buttheir own people," the minority report asserts thatthe treaty does not conform to American naval policyand-would place the United States in a position ofweakness where it could not adequately protect itscommerce in time of war. The three Senators al-leged further that the pact fails to give the UnitedStates parity in naval strength with Great Britain,while savings to American taxpayers also were saidto be absent. "It is a billion dollar treaty for thepurchase of naval inferiority," the minority reportstated.Press correspondents in Washington point out

that efforts to delay action on the treaty willbe made in the special Senate session. In the eventof a long debate an exodus of Senators may takeplace, it is indicated, and with`a quorum lacking voteon the treaty might go over until after the fallelections.Determined opposition to the treaty was also reg-

istered this week in Great Britain, notwithstand-ing the failure of similar attacks recently in theHouse of Commons. Two leaders of the BritishGrand Fleet during the World War, Earl Beattyand Earl Jellicoe, renewed the attack in the Houseof Lords Tuesday. Lord Beatty declared that Bri-tain is "about to commit the great appalling blunderof signing away the sea power by which the BritishEmpire came into being and is maintained to-day."Britain is the only nation to which sea power meansexistence, he added, and she is the only power tomake any disarmament or reduction. British seapower will be lowered to such an extent "as to ren-der her impotent and incapable of protecting the con-

necting links of the Empire," he said. Lord Jellicoe,equally opposed to the treaty, cited technical reasonsfor rejection of the document by the British Govern-ment. Discussion of the treaty in Japan was con-fined this week to the Supreme Military Council, theCabinet and the Privy Council. It appears likely,according to a Tokio dispatch to the New York"Times," that the pact will be submitted to thePrivy Council for ratification early in July.

Agitation regarding the high import duties of theHawley-Smoot tariff was again apparent both inEurope and the United States this week. In Paristhere were discussions as to whether the visit toFrance of Ogden L. Mills, Under-Secretary of theUnited States Treasury, might have any connectionwith the contemplated working of the flexible pro-visions of the tariff. It was suggested in a dispatchto the New York "Times" on the basis of "well in-formed French sources" that Mr 4 Mills might beengaged in an "important economic mission forPresident Hoover" incident to the passage of thetariff bill. Mr. Mills made plain before he left Wash-ington last week that his journey was a purely pri-vate one for vacation purposes.An indirect attack on the new tariff was made in

Paris,' Tuesday, by former Premier Raymond Poin-care. In an address at an international gathering,M. Poincare scored the "unhappy incidents of recentyears, and above all those of the last two or threemonths, which come as a result of blind economy andselfish nationalism." Pierre Flandin, French Min-ister of Commerce, reiterated in a statement to theAssociated Press on the same day that France reliesupon the American sense of fairness for an equitableadjustment of tariffs. The Italian Government tooka step early this week which all correspondents sug-gested was an act of reprisal, occasioned by theAmerican tariff, though official basis for the sug-gestion appeared to be lacking. Without previousnotice, the Rome Government published in theofficial gazette a decree increasing the import dutieson automobiles by 110 to 120%. "It is understoodin official circles," a dispatch to the AssociatedPress said, "that Minister of Corporations Bottaiwas mainly responsible for the new and radicaltariff. He was credited with having declared to theCouncil of Ministers that unemployment in Italy,particularly in the field of automobile works, mustbe stopped."

Officials of the new Bank for International Settle-ments have completed the second important step inthe distribution of the capital stock of that institu-tion, according to an announcement made at Baslelast Saturday. Acceptances have been received, itwas disclosed, from all the 10 European centralbanks which were recently invited to subscribe tostock in the bank. These institutions took a totalof $20,000,000 of stock, paying in one-quarter of thesubscription price. The outstanding capital stockof the bank was thus increased to $82,000,000 from$62,000,000, a Basle dispatch to the New York"Times" indicates. The original subscription wasmade, it will be recalled, by the central banks ofthe six countries interested in reparations, togetherwith private banking interests in the United Statesand the central banks of Holland, Switzerland andSweden. The central banks of Portugal and Yugo-slavia have also accepted the invitations to cub-


8 FINANCIAL CHRONICLE [VoL. 131.

scribe which were issued to them late last month,subject to the condition that their currencies mustbe placed on a gold basis before they are allowedactually to take the stock. Of the authorized stock,$18,000,000 remains unissued, and this is being re-served for other central banks. Applications forstock have been received from central banks in SouthAmerica and Africa, it is said, but since none of theapplicants fulfills the condition of having its na-tional currency on a gold basis none has yet beenaccepted.The reparations functions of the Bank for Inter-

national Settlements, which comprise its essentialreason for existence, have been started with thereceipt and distribution of the proceeds of the recentinternational annuities bond flotation. "Already,however," the "Times" dispatch remarks, "thereappears to be a marked tendency among the bank'sofficials to regard this reparations work as a sec-ondary function and to concentrate more and moreon the bank's other functions of protecting curren-cies, handling deposits and transfers for the centralbanks, and otherwise acting as a common agent forthem. This tendency is especially true of the Amer-ican officials, President McGarrah and Vice-Presi-dent Fraser, who are using every American methodpossible to speed the organization of the bank'spurely business side."

The absolute control exercised over Soviet Russiaby Joseph Stalin, General Secretary of the Com-munist Party, was again illustrated at the currentconvention of the party in Moscow. The meetingbegan June 26, but the reports of developments havebeen slow in coming through, owing to the rigid newscensorship in the Russian capital. It appears, how-ever, that M. Stalin scored a personal triumph thatplaced him more firmly in the saddle than ever be-fore, and that Russia will continue to be ruled inaccordance with Communist doctrines as interpretedby the party leader. The convention is the sixteenthheld by the party, but it is more than two yearssince the last convention. As on former occasions,it provided something of a test of strength betweenthe Dictator and the Communists who hold divergentviews. Opposition of late has been very mild anddiscreet, however, as few members care to court theexile that was meted out to Leon Trotsky. The"Right Wingers," Alexis Rykov, Michael Tomekiand N. A. Uglanov, all made speeches early this weekrepudiating their "right heresy," and the party sup-port of Stalin thus seems to be universal.Other than these evidences of Communist Party

consolidation, the most important event of the con-vention was a lengthy speech by M. Stalin onJune 27. This address was divided into three parts,a Moscow dispatch to the New York "Times" said.The Soviet Dictator dealt first with world affairs,minimizing present Russian difficulties in the lightof the growing unemployment and falling productionin capitalistic States. Russian affairs were nextreviewed, and these were presented as glowingly aspossible. The five-year industrialization plan is tobe accomplished in some departments in three or fouryears, while in the agricultural field the State farmprogram will be accomplished in three years, M.Stalin promised. In the last part of his speech hedeclared the present convention inaugurates an eraof full collectivization and the elimination of theKulak, or rich peasant, as a class. He stated, more-

over, that the party was never so solidly organizedaround its leaders as to-day.

Swift strokes by the compact revolutionary forcesin Bolivia caused a quick overturn of the Govern-ment in that country last week, definitely removingfrom the political scene former President HernandoSiles, who resigned recently so that he might securea change in the Constitution and his own re-electionin violation of the original provisions of that docu-ment. After a week of suspense, during which allcommunications were interrupted, reports of theoccurrences were sent out from La Paz last Satur-day. A dispatch to the United Press declared thata military committee was in control of the capitaland that the movement which started at the Orurogarrison had been successful, with the revolutionaryleaders in command of all the important cities.Tranquillity was immediately restored throughoutthe Republic as the aims of the movement were pro-claimed. Decrees were issued to the effect that thefundamental aim of the revolution was to insure theconstitutional order of succession to the Presidency.All censorship was lifted and newspapers and corre-spondents were given absolute freedom from officialinterference. Political parties were given the rightto hold public and private meetings, while politicalexiles were informed they could return to theirnative land. Casualties were few in the revolution,but Frederick P. Hibbard, American Charge d'Af-faires at La Paz, cabled the State Department inWashington early this week that one American wasslightly wounded by gunfire. Former PresidentSiles took refuge in the Brazilian Legation when thefighting went against him, while General HansKundt, his chief military supporter, took refuge inthe German Legation at La Paz. It was indicatedTuesday that they will both be permitted to leaveBolivia in safety. Secretary of State Stimson saidin Washington this week that it is too early to dertermine the question of American recognition of the -new regime.

There have been no changes this week in the dis-count rates of any of the European central banks.Rates remain at 51/2% in Austria, Hungary, Italyand Spain; at 41/2% in Norway; at 4% in Germany,Denmark and Ireland; at 31/2% in Sweden; at 3%in England, Holland, Belgium and Switzerland, andat 21/2% in France. In the London open marketdiscounts for short bills on Thursday were 2 3/16%against 21/4% on Friday of last week, and 214% forlong bills against 2 3/16@23/4% the previous Fri-day. Money on call in London yesterday was 11/2%.At Paris the open market rate continues at 21/2%,and in Switzerland at 2%.

The Bank of England statement for the week endedJuly 2 shows an expansion of 5,051,000 in notecirculation and since this was accompanied by a lossof 545,282 in gold holdings, the decrease in reservesamounted to 5,596,000. The Bank now holds 157,-228,008 of gold in comparison with 155,705,931 ayear ago. Public deposits fell off 9,834,000 bringingthe total of the item down to 11,670,000, whileother deposits rose 22,477,951. The latter includesbankers accounts and other accounts which increased20,529,024 and 1,948,927 respectively. Propor-tion of reserves to liabilities dropped from 48.79% aweek ago to 40.02% now. A year ago the ratio was


JULY 5 1930.] FINANCIAL CHRONICLE

33.01%. Loans on Government securities increased220,000 and those on other securities 18,085,347.Other securities consists of "discounts and advances"and "securities." The former showed an increase of14,017,659 and the latter of 4,067,688. The dis-count rate is unchanged at 3%. Below we show acomparison of the various items for five years:

BANK OF ENGLAND'S COMPARATIVE STATEMENT.

1930.July 2.

1929.Jul: 3.

1928.July 5.

1927.July 6.

1926.July 7.

Circulation a363.582,000 369,100,858 137,167,000 138,257,930 142,217,610Public dePositv 11,670,000 28,296,091 19,686,000 19,205,447 16,498,498Other deposits 122,367,940 112,856,286 126,830,000 104,376,681 105,595,110Bankers' accounts 84,305,246 75,558,462 Other accounts.-- 38,062,094 37,297,824

Government secure_ 49,075,547 37,281,855 28,769,000 47,546,982 37,520,328Other securities____ 49,324,739 75,278,746 79,742,000 61,488,071 74,559,756Dint. & advances 29,916,820 52,321,206Securities 19,407 919 22,957,540

Reserve notes & coln 53,645,000 46.605,073 56,013,000 32,566,516 28,053,350Coln and bullion__ _157,228,008 155,705,931 173,428,234 151,074,446 150,520,960Proportion of reserve

to liabilities 40.02% 33.01% 38.24% 28.35% 23.26%Bank rate 3% 54% 4 ti % 4 ti % 5%a On Nov. 29 1928 the fiduciary currency was amalgamated with Bank of England

note issues adding at that time 234,199,000 to the amount of Bank of England notesoutstanding.

The French Bank statement for the week ended -June 28 reveals a gain of 47,000,000 francs in goldholdings. Owing to this increase the total of the itemnow stands at 44,051,890,329 francs. Gold at thesame time last year aggregated 36,624,700,705 francs.Credit balances abroad increased 84,000,000 francsand bills bought abroad 45,000,000 francs. A gainof 1,108,000,000 francs is shown in note circulationbringing the total of the item up to 72,594,032,765francs, as compared with 64,921,820,345 francs atthe corresponding week a year ago. An increaseappears in French commercial bills discounted of1,349,000,000 francs, in creditor current accountsof 999,000,000 francs, while advances against secur-ities declined 28,000,000 francs. Below we give adetailed comparative statement for the past twoweeks as well as for the corresponding week a year ago:

BANK OF FRANCE'S COMPARATIVE STATEMENT.

Changesfor Week.Frans:.

June 28 1930.Francs,

Status as ofJune 21 1930.

Francs.June 29 1929.

Francs.

Gold holdings - _ __Inc. 47,000,000 44,051,890,329 44,004,890,329 36,624,700,705Credit halo. abed_Inc. 84,000,000 6,904,153,076 6,820,153,076 7,299,794,554French commercial

bills dIscounted_Inc1,349,000,000 6,253,843,101 4,904,843,101 8,057,964,892Bills bought abed_Inc. 45,000,000 18,696,634,262 18,651,634,262 18,429,160,015Adv. agst. secureDec. 28,000,000 2,719,344,327 2,747,344,327 2,322,007,058Note circulation-. Inc1,108,000,000 72,594,032,765 71,486,032,765 64,921,820,345creel. curr. accts__Inc. 999,000,000 15,358,120,515 14,359,120.515 78,115,303.958

The Bank of Germany in its statement for thefourth week of June shows a gain of 647,454,000marks in note circulations. Other daily maturingobligations fell off 157,008,000 marks while otherliabilities rose 752,000 marks. The total of notecirculation now is 4,721,436,000 marks, as comparedwith 4,838,647,000 marks at the corresponding datelast year and 4,674,202,000 marks in 1928. Theasset side of the account reveals a decrease in goldand bullion of 47,000 marks and in silver and othercoin of 28,314,000 marks while deposits abroad andinvestments remain the same as last week. An in-crease appears in reserve in foreign currency of 1,-673,000 marks in bills of exchange and checks of435,535,000 marks and in advances of 130,548,000marks. Notes on other German banks and otherassets record decreases of 16,967,000 marks and 31,-230,000 marks respectively. The total of gold heldby the Bank now stands at 2,618,874,000 marks,which compares with 1,911,384,000 marks last yearand 2,083,180,000 marks two years ago. Below wefurnish a comparison of the various items for thepast three years:

REICHSBANK'S COMPARATIVE STATEMENT.

Changesfor Week.

Assets Reichsmarks.June 30 1930. June 29 1929. June 30 1928.Reichsmark& Reichsmark:. Reichsmark*.

Gold and bullion Dec. 47,000 2,618,874,000 1,911.384,000 2,083,180,000Of which delve. abed Unchanged 149,788,000 59,147,000 85,626.006Reeve In for'n curr_....-Inc. 1,673,000 358,836,000 360,526,000 250,044,000

Bills of exch.&checks Inc.435,535,000 1,783,605,000 3,001,218,000 2,477,172,000

Silver and other coinDec. 28,314,000 142.521,000 115,862,000 85,385,000Notes on oth.Ger.bks Dec. 16,967,000 4,443,000 3,324,000 7,593,000

Advances Inc.130,548,000 185,829,000 194,331,000 138,279,000

Investments Unchanged 101,022,000 92,889,000 93,996.000

Other assets Dec. 31,230,000 589,270,000 562,049,000 684,172,030

LiabilitiesNotes in circulationInc.647,454,000 4,721,436,000 4,838,647,000 4,674,202,000

Oth.dally matur.obligDec157,008,000 491,624,000 631.313,000 525,207,000Other liabilities Inc. 752,000 213,622.000 329,227,000 215,417,000

Money rates in the New York market were easyin the short business week now ending, notwith-standing the sharply increased end-of-the-monthdemand. Disbursements on June 30 were heavy,while the holiday demand for currency also wassubstantial, but these needs occasioned only a slightand temporary tightening of call money rates. Inother respects, the market was inclined to ease fur-ther from the very low levels previously established.The buying rate for bankers' bills up to 45 claysmaturity was reduced to 17/8% by the New York Fed-eral Reserve Bank early in the week. Reductionsin rediscount rates were announced Wednesday bytwo banks of the Federal Reserve System, the Phila-delphia institution lowering its rate from 4% to31/2%, while the Boston institution lowered its ratefrom 31/2% to 3%.

Call loans hardened early in the week, in connec-tion with the large month-end requirements forfunds. Withdrawals by the banks amounted to$75,000,000 Monday, and to $80,000,000 Tuesday,but they were negligible thereafter, and rates againdropped. A level of 2% was established for renewalsMonday, but the demand caused an increase to 3%for new loans. Tuesday's session was substantiallysimilar to that of the previous day, but renewalswere fixed at 21/2% on this occasion, while newloans again advanced to 3%. The period of greatestdemand being over, a level of 21/2% prevailed all ofWednesday on the Stock Exchange, with moneyavailable in the unofficial outside market at 2%.In Thursday's final session of the week, renewalswere again fixed at 21/2%, but funds were availablein plenty, and the rate dropped to 2%, while streetloans were reported at 11/2%. Time loan rates wereunchanged. Reports of brokers' loans made avail-able this week included both the tabulations regu-larly published. The comprehensive Stock Exchangecompilation, covering the full month of June, showeda reduction of $1,020,120,623. The tabulation ofthe Federal Reserve Bank of New York, covering theweek ended Wednesday night, registered a declineof $197,000,000. Gold movements for the sameweekly period, as reported by the Federal ReserveBank, consisted of imports of $1,115,000, with noexports and no net change in the stock of gold heldear-marked for foreign account.

Dealing in detail with the call loan rate on theStock Exchange from day to day, on Monday, afterrenewals had been effected at 2%, the rate on newloans advanced to 3%. On Tuesday the renewalrate was fixed at 21/2%, after which there was againan advance to 3% in the rate for new loans. OnWednesday all loans were at 21/2%, including re-newals. On Thursday, after renewals had been putthrough at 21/2%, there was a drop in the rate fornew loans to 2%. Friday was Independence Day


10 FINANCIAL CHRONICLE For,. 131. Nand a holiday. Time money has ruled dull. Quota-tions on Monday remained unchanged. On Tuesdayand since they have been 21/2@234% for 30 and 60days, 23/4 for 90 days, 234@3% for four and fivemonths, and 3% for six months. Prime commercialpaper in the open market continued in brisk demandthroughout the week and little or no difficulty wasexperienced in disposing of all the paper available.Rates were unchanged at 31/4@31/2% for names ofchoice character of four to six months maturity,with an occasional extra choice transaction at 3%,and 31/2@3%% for shorter choice names and othernames.

The market for prime bank acceptances has beensluggish and without noteworthy moveinent. TheNew York Federal Reserve Bank on Tuesday, July 1,reduced its buying rate for bankers' acceptances to17/8%, and was evidently successful in securing alarge line of bills. The 12 Reserve Banks increasedtheir holdings of acceptances during the week from$102,313,000 to $157,485,000. At the same time theyincreased their holdings of acceptances for theirforeign correspondents from $463,642,000 to $481,-269,000. Altogether, the Reserve Banks took over$72,799,000 of bills during the week. The postedrates of the American Acceptance Council are now2% bid and 17/8% asked for bills running 30 days,and also for 60 and 90 days; 21/2% bid and 2% askedfor 120 days, and 21/4% bid and 21/2% asked for 150days and 180 days. The Acceptance Council nolonger gives the rates for call loans secured by ac-ceptances, the rates varying widely. Open marketrates for acceptances also remain unchanged, asfollows:

SPOT DELIVERY.180 Days 150 DaysBid. Asked. Bid. Asked.

Prime eligible bills 234 234 23.( 23490 Days 60 DaysBid: Asked. Bid. Asked.

Prime eligible bills

2 11.1 2 134

120 DaysBM. Asked.214 2

30 DaysBid. Asked.2 114

FOR DELIVERY WITHIN THIRTY DAYS.Eligible member banks 214 bidEligible non-member banks 234 bid

Two of the Federal Reserve Banks have this weeklowered their rediscount rates. Effective July 3,the Boston Federal Reserve Bank reduced its ratefrom 31/2% to 3%. On the same date the FederalReserve Bank of Philadelphia changed its redis-count rate from 4% to 31/2%. There have been noother changes this week in the rediscount rates ofany of the Federal Reserve Banks. The followingis the schedule of rates now in effect for the variousclasses of paper at the different Reserve Banks:DISCOUNT RATES OF FEDERAL RESERVE BANKS ON ALL CLASSES

AND MATURITIES OF ELIGIBLE PAPER.

Federal Reserve Bank.Rate in Effect on Date PreviousJuly 3. Established. Rate.

Boston 3 July 3 1930 334New York 234 June 20 1930 3Philadelphia 33. July 3 1930 4Cleveland 334 June 7 1930 4Richmond 4 Apr. 11 1930 434Atlanta 4 Apr. 12 1930 434Chicago 314 June 21 1930 4St. Louis 4 Apr. 12 1930 434Minneapolis 4 Apr. 15 1930 434Kansas City 4 Feb. 15 1930 414Dallas 4 Apr. 8 1930 414.San Francisco 4 Mar. 21 1930 414

Sterling exchange was again more active and firmerthan in many weeks. The range this week has beenfrom 4.85 11-16 to 4.86% for bankers' sight bills,compared with 4.855/i to 4.85 15-16 last week. Therange for cable transfers has been from 4.85 29-32 to4.86 17-32, compared. with 4.85 27-32 to 4.863/i a

week ago. The market was rather exceptionallyactive for the short session on Saturday, largely asa result of the movement which began. last week oftransfers to meet half-year-end requirements. Fol-lowing Saturday's active trading there was a reces-sion on Monday in reaction after the half-year-endbusiness had been cleared up, and purchases ofexchange fell off. On Tuesday the rate workedslowly higher and cable transfers reached 4.86) atthe close on news of a further cut in the New YorkReserve Bank bill buying rate. The market be-came extremely active on Wednesday, when sterlingrose to 4.86% for cable transfers. Much of thepresent firmness in sterling is due to the transfer offunds in connection with tourist traffic. However,a more important factor arises from the convictionin banking circles that there will be no furtherreduction in the Bank of England's rate of redis-count, and that sterling will be firm and in demandso long as money rates continue as easy as they arein New York and until the seasonal pressure againstLondon becomes effective toward early autumn.Another important factor lending firmness to sterlingat this time is reported to be a pronounced Americandemand in London for high-grade bills. It is alsostated that there is a strong demand on Americanaccount for the British funding loan.

Sterling has improved with respect to most of theContinental exchanges except the French franc.Exchange on Paris has moved strongly againstLondon, and in Wednesday's market cable advicesstated that the sterling rate against Paris openedat the lowest levels in the present movement at123.59, but recovered later to 123.65, after theshipment of 430,076 gold from the Bank of Englandto Paris. A total of approximately 1,358,000 goldwas shipped to Paris from London on Tuesday,Wednesday and Thursday of this week, includingapproximately 490,000 which was purchased inthe London open market. London dispatches stated-----that the bullion market expects France to purchasemore than 1,000,000 in the open market next Tues-day and to continue to make withdrawals from theBank of England during the next few days. Thisweek the Bank of England shows a decrease in goldholdings of 545,282, the total holdings standing at157,228,008, compared with 163,851,130 a yearago. On Monday the Bank of England bought 22in foreign gold coin and sold 8,737 in gold bars. OnTuesday the Bank sold 227,268 in gold bars. Ofthe total of 518,000 South African gold available inthe open market, approximately 495,000 was takenfor shipment to Paris and the balance was absorbedby ;the trade and India at a price of 85s. %d. OnWednesday the Bank of England sold 430,076 ingold bars (reported taken for shipment to Paris).On Thursday the Bank received 75,000 sovereignsfrom abroad, released 100,000 sovereigns and sold207,986 gold bars from abroad. The gold soldwas for Paris.At the Port of New York the gold movement for

the week June 26-July 2, inclusive, as reported bythe Federal Reserve Bank of New York, consistedof imports of $1,004,000 from Colombia and $111,000chiefly from other Latin America. There were nogold exports and no change in gold earmarked forforeign account. In tabular form the gold move-ment at the Port of New York for the week endedJuly 2, as reported by the Federal Reserve Bank ofNew York, was as follows:


JULY 5 1930.] FINANCIAL CHRONICLEGOLD MOVEMENT AT NEW YORK, JUNE 26-JULY 2, INCLUSIVE

Imports.$1,004,000 from Colombia

111,000 chiefly from other LatinAmerican countries

Exports.None

$1,115,000Net Change in Gold Earmarked for Foreign Account.

None

Canadian exchange is slightly easier, due it isthought, to considerable transfers from Canada tothe New York security markets. Bankers look uponthe weakness in Canadian as temporary. On Satur-day and Monday, Montreal funds were at a discountof 1-64 of 1%. They firmed up on Monday to 1-32 of1%, but in Tuesday's trading dropped to 3-64 of1%. On Wednesday the rate was 1-16 of 1% dis-count, and on Thursday were quoted at 3-64 of1% discount.

Referring to day-to-day rates sterling exchange onSaturday last was strong in tone. Bankers' sightwas 4.85%@4.85 31-32; cable transfers 4.86 3-324.86 5-32. On Monday sterling displayed an easiertone. The range was 4.85 [email protected]% for bankerssight and. 4.85 29-324.86 1-16 for cable transfers.On Tuesday sterling was again in demand. Therange was 4.85%@4.85 15-16 for bankers' sightand 4.864.86'/ for cable transfers. On Wednesdaysterling was firm. The range was [email protected] 3-16for bankers' sight and 4.861/[email protected]% for cabletransfers. On Thursday the market continued firm.The range was 4.86%4.863A for bankers' sightand 4.86 [email protected] 17-32 for cable transfers. OnFriday owing to the Independence Day holidaythere was no market in New York. Closing quotationson Thursday were 4.86% for demand, and 4.86 7-16for cable transfers. Commercial sight bills finished at4.861/3, sixty-day bills at 4.84 1-16, ninety-day billsat 4.83 3-16, documents for payment (60 days)at 4.84 1-16, seven-day grain bills at 4.8511-16. Cotton and grain for payment closed at4.86%.

Exchange on the Continental countries is firmer,but except for the demand for tourist accommodationthe firmness is derived chiefly from transactionstaking place outside the New York market. Frenchfrancs have been especially firm and have moved upsharply. As noted above, francs are firm with re-spect to sterling. Paris has withdrawn from Londongold to the amount of approximately 1,358,000 andthe London market expects that France will take themajor share of the open market gold next week andwill continue to make withdrawals from the Bankof England besides. The exceptional firmness of thefranc which developed in the New York market onTuesday took traders largely by surprise, as therewere few offers of francs to be found in New York.There is a growing belief in banking circles thatFrance will take gold from the United States verysoon, especially since francs show no sign of weaken-ing and in Wednesday's trading the market expe-rienced a plentiful supply of offers at new higherlevels. The offerings were the result of a rush tomake commitments in the expectation that the ratemight move still higher. This week the Bank ofFrance shows an increase in gold holdings of 47,-000,000 francs, the total standing at 44,051,890,329francs, against 36,624,700,705 a year ago.German marks have moved up fractionally, fol-

lowing the trend of firmer sterling quotations.Money continues exceptionally easy in Berlin andthere is every expectation in banking circles that

the Reichsbank will again lower its rate of discountas the last reduction, to 4%, still leaves the Reichs-bank out of touch with the trend of the money mar-ket. The private discount rate remains at % of 1%below the Reichsbank rate and first-class borrowershave been finding accommodation at 13%, whichis a record low rate. It would seem that foreignfunds are no longer being offered in Germany, asBerlin interest rates are not tempting. On thecontrary, Germany is rapidly repaying foreign short-term credits. The change in direction of the flowof funds is responsible for the comparative weaknessin mark exchange during the past few weeks in com-parison with the high of 23.90% quoted in New Yorkin the early part of the year.

Italian lire are steady and show a firmer undertonethan in several weeks. The firmness in lire is partlyseasonal; due to tourist transfers and immigrantremittances. Part of the firmness arises from theimprovement in the trade balance, which is no longerdue entirely to decreased wheat importations but isattributable also to increased exportations. The ex-cess of imports for the first five months of this yearis stated at 2,362,000,000 lire, as against 4,676,000,-000 lire during the corresponding period in1929.The London check rate on Paris closed at 123.71

on Thursday of this week, against 123.73 on Fridayof last week. In New York sight bills on the Frenchcentre finished at 3.933/s, against 3.92 11-16 onFriday of last week; cable transfers at 3.93%, against3.92 13-16; and commercial sight bills at 3.9278,against 3.923'. Antwerp belgas finished at 13.96for checks and at 13.97 for cable transfers, against13.95 and 13.95k. Final quotations for Berlinmarks were 23.8334 for bankers' sight bills and23.8434 for cable transfers, in comparison with23.813.' and 23.82% a week earlier. Italian lireclosed at 5.237/3 for bankers' sight bills and at5.24 1-16 for cable transfers, against 5.23 11-16 and5.237/3 on Friday of last week. Austrian schillingsclosed at 143', against 143, exchange on Czecho-slovakia at 2.9634 against 2.96%; on Bucharest at0.60, against 0.60; on Poland at 11.25, against11.25; and on Finland at 2.52, against 2.52. Greekexchange closed at 1.29 7-16 for bankers' sight billsand at 1.29 11-16 for cable transfers, against 1.29 5-16and 1.29 9-16.

Exchanges on the countries neutral during thewar have been steady, with Holland and the Scan-dinavians showing firmness in sympathy withsterling exchange and as a result of transactions.originating chiefly outside the New York market.The outstanding feature of importance in the neutralsis the sharp rise in pesetas on Wednesday followingan announcement from Madrid that the SpanishGovernment has definitely decided to stabilize thecurrency. There was a large conclave of bankers andeconomists in Madrid on Wednesday to study themonetary situation. Peseta exchange fluctuatedwildly all week. In Monday's trading pesetasdropped below 11 cents for the first time in manyyears, going as low as 10.85 for cable transfers. Theuprush on Wednesday brought the rate to as highas 11.77. The dispatch on Wednesday that attemptswould be made to stabilize the currency was the firstofficial announcement of the sort from the Berenguercabinet. It is not expected that the peseta will beactually stabilized until November or December when


12 FINANCIAL CHRONICLE [VOL. 131.

Parliament convenes again, but it is thought that thisdelay should prove favorable to the Government'splans for allowing sufficient time for the exchangeto recover to more satisfactory levels.

Bankers' sight on Amsterdam finished on Thurs-day at 40.213%, against 40.18% on Friday of lastweek; cable transfers at 40.23, against 40.193/2; andcommercial sight bills at 40.183/2, against 40.153/2.Swiss francs closed at 19.39% for bankers' sight billsand at 19.403/2 for cable transfers, in comparison with19.373/i and 19.383. Copenhagen checks finishedat 26.77 and cable transfers at 26.783I, against26.753/2 and 26.763%. Checks on Sweden closed at26.863/2 and cable transfers at 26.873%, against26.853/ and 26.86%; while checks on Norway finishedat 26.78 and cable transfers at 26.793, against26.76 and 26.773/2. Spanish pesetas closed at 11.54for bankers' sight bills and 11.55 for cable transfers,which compares with 11.21 and 11.22 a weekearlier.

Exchange on the South American countries isextremely dull. Brazilian Inilreis are steady. Ar-gentine paper pesos are again ruling lower and arethe cause of considerable anxiety to business inBuenos Aires. The past few weeks have been themost disastrous suffered by Argentine exchangesince the gold conversion office was established in1890 with the principal object of preventing widefluctuations in the exchange value of Argentinecurrency. When banking hours closed on Dec. 16 afew hours before the decree closing the conversionoffice was issued, dollar quotations were 106.35 andsterling 463.d. for the gold peso, which made thepaper peso worth 41.3 American cents. Currentlythe peso is quoted at 35 15-16 cents in New York.At present the low quotations for the peso are largelythe result of the low prices and backward demand forArgentine products, especially wheat and othercereals, flaxseed, wool, and hides and leather.Meanwhile Argentina's imports of manufacturedgoods, especially from the United States, GreatBritain and Germany, bear a disproportionate rela-tion to her exports of foodstuffs and raw materials.Peruvian exchange is at all times exceptionally quietin the New York market. At present the market isextremely thin. Bankers have no difficulty in buyingPeruvian, but find it almost impossible to sell.New York bankers and foreign exchange traders areno longer quoting in terms of the Peruvian pound,but in terms of soles. According to the law passedon Feb. 11, the par of the sole is fixed at 40 cents,10 sols equaling one Peruvian pound. This law isnot to take effect, it is understood, until February1931. The law prescribes penalties for selling Peruviancurrency below this stabilized figure. Heretofore,until within the last few days, Peruvian exchangehas been quoted nominally at $4.00 for the Peruvianpound. However, trading in the open market inNew York and London is now quoted on the basisof the sol. The nominal quotation then would be 40cents. In the open market, however, the Peruviansol is quoted this week, as last, at 37 cents. Argentinepaper pesos closed at 35 15-16 for checks, as com-pared with 35 15-16 on Friday of last week, and at36 for cable transfers, against 36. Brazilian milreisfinished at 11.10 for bankers' sight bills and at 11.33for cable transfers, against 11.35 and 11.38. Chileanexchange closed at 12 1-16 for checks and at 12.3/i

for cable transfers, against 12.10 and 12.15; Peru at37, against 37 (see comment above).

Exchanges on the Far Eastern countries continueessentially unchanged from the past several weeks.Exchange on Japan, while relatively easier than aweek ago, is nevertheless firm but extremely dull.The fractional weakness in yen is due largely to therecession in Japanese trade with China. TheChinese quotations continue demoralized on accountof the low prices of silver and the general distressof the country arising from this circumstance aswell as from the renewal of factional warfare. Closingquotations for yen checks on Thursday were 49 7-16@,493/2, against 49 7-16@493/2. Hongkong closedat 313/8@31 3-16, against 31%(4)31 7-16; Shanghaiat 369'@,36%, against 37@373'; Manila at 49 8,against 49%; Singapore at 56 3-16@563/8, against56 3-16@56%; Bombay at 363j, against 363, andCalcutta at 363., against 363.j.

Pursuant to the requirements of Section 522 of theTariff Act of 1922, the Federal Reserve Bank is nowcertifying daily to the Secretary of the Treasury thebuying rate for cable transfers in the different coun-tries of the world. We give below a record for theweek just passed:FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE

BANKS TO TREASURY UNDER TARIFF ACT OF 1922,JUNE 28 1930 TO JULY 4 1930, INCLUSIVE.

Coonstry and MonetaryUnit.

Neon Buying Rate for Cable Transfers In New art.Value In United Stales Mew.

June 28.June 30. July 1. July 2. July 3. July 4.

EUROPE- $ $ $ $ $ $Austria. schill Mg .140946 .140948 .140950 .140969

.140978Belgium. belga 139578 .139566 .139572 .139598 .139681Bulgaria. lev .007208 .007208 007211 .007208 .007211Czechoslovakia. krone .029660 .029661 .029658 .029657 .029665Denmark, krone 267654 .267630 .267575 .267652

.267787England, pound

sterling 4.860937 4.859815 4.860234 4.861741 .864796Finland. markt& .025167 .025174 .025173 .025172 .023175France. frane 039278 .039272 .039297 .039320 .039318Germany. reichamark .238208 .238307 .238339 .238406 .238474Greece, drachma .012957 .012955 .012957 .012958 .012958Holland, guilder .401988 .401921 .402002 .402085 .402277Hungary, Pengo .174846 .174813 .174895 .174914 .174881 -Italy. lira .052389 .052381 .052380 .052389 .052401Norway. krone .267772 .267745 .267722 .267793 .267918Poland. zloty 111925 .112005 .112000 .112000 .111995Portugal. escudo .044928 .044950 .044983 .044950 .045000Rumania. leu 005949 .005949 .005949 .005'50 .005953Spain, peseta .110453 .108850 .112400 .116858 .114580Sweden, krona 268658 .268615 .268552 .268620 .268718 HOLT-Switzerland. franc .193806 .193770 .193806 .193873 .194026 DAYYugoslavia. dinar_ .017660 .017664 .017667 .017671 .017670ASIA-

Chlna-Chefoo tall_ .384166 .389000 .380000 .380000 .375208Hankow tad l .383750 .379687 .379687 .379687 .376093Shanghai tad l .371875 .368839 .367946 .367232 .364484Tientsin tad l 389166 .385000 .385000 .385000 .380625Hongkong dollar._ .313035 .310357 .310089 .309196 .309107Mexican dollar .267187 .263750 .264062 .264375

.260625Tientsin or Pelyang

dollar .268750 .265833 .265416 .266250.262500

Yuan dollar .265416 .262500 .262083 .262916.259166indla. rupee .360435 .360550 .360735 .360750 .360764Japan yen .494265 494228 .494265 .494215.494128

Ringapore(S.S). dollar .559141 .559141 .559141 .559000 .559208NORTH AMER -

Canada. dollar .999784 .999747 .999509 .999499.999393Cuba. peso .999140 .999218 .999143 .999155.999158

Mezion. peso .473562 .473512 .473387 .472756 .472762Newfoundland. dollar .997407 .997032 .996868 .996781 .996750SOUTH AMER.-argentine. Pee0 (goldi .813307 .811145 .805450 .806248 .818741Brazil. mIltels .112450 .112562 .112642 .112130 .109850iltille. P81110 .120947 .120938 .120941 .120962 .120979DruguaY. Peso .860250 .857125 .844375 .848750 .857250)DIOM Cola. peso .966400 .966400 .986400 .966400 .966400

Owing to a marked disinclination on the parttwo or three leading institutions among the NewYork Clearing House banks to keep up compilingthe figures for us, we find ourselves obliged to dis-continue the publicaton of the table we have beengiving for so many years showing the shipments andreceipts of currency to and from the interior.As the Sub-Treasury was taken over by the Fed-

eral Reserve Bank on Dec. 6 1920, it is also no longerpossible to show the effect of Government operationsin the Clearing House institutions. The FederalReserve Bank of New York was creditor at the Clear-ing House each day as follows:

of


JULY 5 1930.] FINANCIAL CHRONICLE 13DAILY CREDIT BALANCES OF NEW YORK FEDERAL RESERVE BANK

AT CLEARING HOUSE.

Saturday, Monday, Tuesday, Wednestry, Thursday, Friday, AggregateJune 28. June 30.

IJuly 1. July 2. July 3. July 4. for Week.

$ $155,000,000 115,000.0001 213,000,000 219,000,000 189.000,000 Holiday Cr. 891,000,000

Note.The foregoing heavy credits reflect the huge mass of checks which cometo the New York Reserve Bank from all parts of the country in the operation ofthe Federal Reserve System's par collection scheme. These large credit balances,however, reflect only a part of the Reserve Bank's operations with the ClearingHouse institutions, as only the items payable in New York City are representedin the daily balances. The large volume of cheeks on institutions located outsideof New York are not accounted for in arriving at these balances, as such checksdo not pass through the Clearing House but are deposited with the Federal ReserveBank for collection for the account of the local Clearing House banks.

The following table indicates the amount of bul-lion in the principal European banks:

Banks ofJuly 3 1930. July 3 1929.

Gold. Silver. I Total. Gold. Silver. Total.

England _France a__Germany bSpain _Italy Netherl'Nat. Belg_Switzerl ' dSweden Denmark _Norway

1 157,228.008

157,228,008155,705,931352,415,122 (d) 352,415,122 292,997,605123,454,300 c994,600 124,448,900 92,611,85098,842,000 28,744,000127,586,000 102,450,00056,301,000

56,301,000 55,434,00025,994,000 2,236,000 28,230,000: 36,400,00034,333,000

34,333,000, 28,561,00023,156,000

23,156,000, 19,842,00013,491,000

13,491,000 12.971,0009,570,000

9,570,000: 9,591,0008,143,000 8,143,000: 8,155,000

155,705,931d 292,997,605

994,600, 93,606,45028,893,000131,343,000 55,434,0001,780,000, 38.180,0001,270,000 29,831,0001,568, 21,410,000 12,971,000431, 10,022,000 8,155,000

Total week 902,927,430 31,974,600 934,902,030 814,719,380 34,936.600549,655.986Frey. week 913,064,062 31,831.600 944,895,662 811,773,872 34.822.600846,596.472a These are the gold holdings of the Bank of France as reported in the new form

of statement. b Gold holdings of the Bank of Germany are exclusive of gold heldabroad, the amount of which the present year is 7,489,000. c As of Oct. 7 1924.d Silver is now reported at only a trifling sum.

The End of a PeriodThe Withdrawal of FrenchTroops from Germany.

The withdrawal of the last detachment of Frenchtroops from the Rhineland on Monday marked theend of a period of military occupation of Germanywhich began with the armistice, in 1918, and which,under the terms of the Treaty of Versailles, was tobe prolonged until 1935 unless the Allies should beconvinced that Germany had fulfilled certain re-quirements of the treaty and should consent to leaveat an earlier date. With the troops went also thememllers of the Interallied High Commission, thusterminating the civil as well as the military surveil-lance. -ft is to the credit of both the French and theGermans that the withdrawal was accomplishedquietly and with dignity, attended only by the for-malities which the customs of war prescribe for end-ing a military occupation, and unmarked by a dis-play of animosity on the part of the communitieswhich for eleven and a half years had suffered analien military rule. Once the French had gone, re-*oicing broke loose, and the pealing of bells, cheersand singing, the display of flags and bunting, andpeeches and demonstrations voiced the feelings ofpeople who at last were free. In a few days Presi-ent von Hindenburg, the old warrior whose nobilityn peace has been for the country a saving grace, willisit the Rhineland, and all Germany will again re-oice that it has come into its own.It seems a far cry back to the bitter and vengefulays of 1919, when the victorious Allies and thenited States busied themselves with the framing

f a "peace" which should leave Germany, for aeriod indefinitely long, crushed, humiliated, and athe mercy of its conquerors. In the flush of a victoryhich would never have been won without Americanid, the impossible was to be done. Germany was toe made to pay for the war at a price to be fixed byhe Allies. Its commerce was to be destroyed as fars effective competition with other nations was con-erned, its army and navy reduced to a shadow, andts entire political and economic life supervised andontrolled for years to insure observance of the treatyequirements and make impracticable any early re-

covery. No German, it was believed, would sit inthe Council or Assembly of the League of Nations,and while diplomatic and consular relations wouldof course have to be resumed, the German peoplewere to be made to feel that they were outcasts. Notagain in the time of any person then living, it wasloudly asserted, would a defeated Germany be ableto raise its head.For the changed conditions which have ended the

Allied occupation five years before the time set bythe Versailles treaty, many persons and a variety ofinfluences and events are to be credited. The digni-fied course of President von Hindenburg, the policyof most, at least, of a long list of Chancellors andForeign Ministers, and the good sense of the Germanpeople themselves have won for the new governmentof the Reich stability and success. The French sever-ity which reached its climax in the occupation of theRuhr under Poincare has been offset by th

cfc_19300705.pdf

Documents

movedinto new

new york city

old congress

alsoconsideration of

new combinedmay

decrying congress

adjournmentof congress

upper house of congress