Decatur Daily Democrat, Volume 35, Number 1, Decatur, Adams County, 1 January 1937 — Page 4

PAGE FOUR

DAILY DEMOCRAT DECATUR Published Every Evening Except Sunday by THE DECATUR DEMOCRAT CO. Kntered at the Decatur, Ind., Post Office as Second Class Matter. I. H. Heller President A. K. Holthouse, Sec'y. & Bus. Mgr. pick D. Heller Vice-President Subscription Rates: Single copies 1 -0" One week, by carrier— .10 One year, by carrier 5 00 One month, by mall .35 Three months, by mall 1.00 Six months, by mall 1.75 One year, by mail — 3.00 One year, at office .... 3.00 Prices quoted are within a radius of 100 miles. Elsewhere 33.50 one year. Advertising Rates made known on Application. National Adver. Representative SCHEERER. Inc. |ls Lexington Avenue, New York, 35 East Wacker Drive, Chicago. Charter Member of The Indiana League of Home Dailies Now is the time to renew your your subscription. It's here —the Happy New Year —let's make it everything we want it to be. Now that we have rung out the , old and in the new, it's up to us to make good on the resolutions ; to do all we can to make this the best year in all time. | ~ < Decatur and Adams county will ( go forward why this year. No bet- . ter community exists and there . are many reasons why we should not be stopped. Let's go. While the average weekly pay of

today is lower than it was in 1929, the hourly rate is 60c as compared to 58.9 c for that year. The fewer number of hours reduces the weekly earning it seems. If Europe really wants to start tin New Year out right, she should do it by a drive for peace. They have spent much of the past year sparTmg for position to make war and they haven’t gained a thing. Two or three overhead railroad crossings would help this city out as much as any thing we can think of and by the way, that's not an impossible improvement, if proper effort is made. Regardless ci' your age, we venture you have never seen a holiday season equal to this one for mild weather and it's alright with most folks if it continues until spring and then gets better. Hope you haven't overlooked getting that new automobile license. If you have, better walk down and get them. It's not safe to drive the car for the orders are to pick up those who are negligent about this regulation.

King Cotton totters on Ills throne in this country. In the past tew years we have shown a decrease in production ot 43 per cent while India has gained 8 per cent, Egypt 68 per cent. That's something to think about too. A hundred new homes in Decatur would make possible an increase of several hundred in our population. To grow we must keep up with the demands for homes! and employment. We have the latter and must have the former. Now see how long you can keep those resolutions. It will be splendid if you can make them all last throughout the year and why not? Really we will all be better oft it we do what we now make up our minus to try. The legislature, the new congress, the first inauguration of a president under the new law, inauguration of Governor Townsend, court news, social events and sports of the day, local happenings everything that’s going on—that’s what you will read in your home paper this year. Subscribe now. it won 1 be long now until you can begin wishing and looking lor i

i spring. We have passed the shortest day of the year and already the days are lengthening noticeably. ! From this time on this will increase and with each added moment of daylight we will be brought 1 a little closer to the daffodils and : violets. ; 1 Renew your subscription by mall to the Daily Democrat. We are , sure this is going to be a wonderi ful year, filled with news that will 1 he news and that you will want to read. We are enthused over the. prospects and assure you we will: gallop along with the times, giving you each days happenings as they 1 occur. We have heard often that a half dozen or so rich folks run this nation. The truth is that for last year 320,500 people reported a net total income of $4,053,653,000 while 3,339,000 persons reported a total income of $6,792,000,000. In other words and in round numbers onetenth of our people divided up forty per cent of the ten billions of earnings reported for income taxes, A recent report shows that not much of the two billion dollar soldier bonus distributed a year ago has been wasted. Knocked down, the report shows that 5 per cent was spent for automobiles, 11% per cent for personal and family ■ expenditures, 23% per cent to pay| old debts, 26 per cent for homes and farms and equipment, while, 34 per cent is held in uncashed bonds, investments and Not such a bad showing for the boys is it?

The Indiana Railway, which ineludes the interurban lines over the state, are to be liquidated, beginning January 9th, it has been announced. Judge Herbert Wilson of Indianapolis issued the order because the lines, now in receivership, cannot meet increasing costs and wages. This will probably inean’ suspension of traction service between Fort Wayne and Indianapolis, both over the MuncieAnderson branch and the PeruKokomo route, effecting a dozen cities and large towns. o ♦ —— < /Answers To Test | Questions | Below are the answers to the | Test Questions printed on Page Two ♦— 1. U. S. Bureau of Engraving and Printing, Washington, D. C2. Sistine Chapel. 3. Blackstone river 4- American author. 5. The science nad practice of fruit growing. 6. Alpha and Omega. 7. Bread. 8. The form of marriage in which a woman has more than one husband at a time. 9. In the Windward Inlands, West

' Indies. ( 10- Shakespeare. i — o — i l COURTHOUSE i Estate Case The will was probated in the es- 1 teate of Amanda Kirsch. It was ordered placed on record. The will dir- ' ected that Fred Reppert be reimbursed for life expenses during her last lllnees and funeral expenses. I during her last illness and funeral expenses- The remainder of the estate was ordered divided share and share alike among the three children. Estate is Insolvent A petition to settle an estate as insolvent wan filed, submitted and sustained and notice ordered in the | estate of Benjamin M. Smith. Arlo Poling, 25, mechanic, Wren Ohio and Doris Stetler, 21, DecaI tur. M infield King. 21, insurance salesman, Deshler. Ohio to Louise Zimmerman, 20, Berne. Harry C. Peters, 39, custodian to Lucille B. Hipsley, 23, Van 1 Wert, Ohio.

o- 1 Radcliffe Girl Only 15 Cambridge, Mane. —(UP)— At 15 years of age Miriam Hoback is believed the youngest student at Radcliffe College. Graduated from ' Cambridge public schools, Mies Roj back never had been a ‘'grind ” As relaxation from studies ot classical literature and higher mathematics, the petite blonde takes part in athletic*, or mtieJcal activities.

Another Abdication a ~ . ■ ’ ' jsi's: ■ay sw > Hl / « __ J Blit lllk -■f zw/ /araLr

Outlook For Indiana Business As Seen By Business Experts

1 (Editor's note: The problem of ■ banking in Indiana is discussed to-' day for our readers by a staff member of the Indiana University 1 School of Business Administration) i r By EDWARD E. EDWARDS, i Assistant Professor. Indiana University School of Business Administration. Three years ago it was generally 1 believed that 1937 would be a “lean year” for state chartered banks. The necessity for Federal supervision of banks having their deposits insured by the Federal Deposit Insurance corporation, and particularly the requirement in the banking act of 1933 that all insured banks must become members of the Federal reserve system foretold the wholesale rechartering of state banks as national banks for the purpose of avoiding dual regu-1 lation. Many well informed per-' sons felt that by the end of 19371 there would no longer be any state banks. Yet today both the number and resources of class A state banks are greater than in 11933. There are at least two reasons' why state chartered banks have continued to grow in number and 1 in resources during these years when a transfer to national charter seemed inevitable. In the first , place should be mentioned the un-!

certainty as to the permanence of, th Federal insurance and as to the, necessity for membership in the ‘ Federal reserve system. A second reason is the excellent Indiana banking laws and the capable supervision of financial institutions by the state. Whether these reasons will continue to apply during the coming years remains to be seen, but there certainly is no indication at the moment that any large number of state banks plan to reorganize under national charaters. i Deposits in state chartered - banks have grown steadily follow-1 ing the bank moratorium of 1933. ! At the time of the last called re ] port (June 30, 1936) total deposits* amounted to 1365.066.299. an in-1 crease of almost one hundred mil-1 lon dollars from June 30, 1933. Al-! most thirty million dollars of this I increase occurred during the first. | six months of this year, total de-] posits on January 1, 1936. amount- 1 ing to $336,368,415. It is not un- ! likely that state banks will report | total deposits of over four hundred million as of December 31, 1936. This large increase in bank deposits has not... Upon accompanied

by an increase in loans and discounts. As a matter of fact, total loans and discounts now are less than in 1933, and make up only 35 per cent of the total assets. Prior to the depression, loans and dis ' counts normally represented from 50 to 65 per cent ot the total as | sets, and even in 1933 amounted i to over 50 per cent. A small increase in loans and discounts for state banks occurred during the first six months of this year aud also during ths last six mouths of 1935. This year is the

DECATUR DAILY DEMOCRAT FRIDAY, JANUARY 1, 1937-.

first year since 1926 that loans and ' discounts have shown an increase over the previous year. With gen- , eral business improving there is ' every reason to believe this in- ! crease will continue and that 1937 I will find loans and discounts ac- ' counting for a large portion of the banks' assets. ■ Some of the results of increasing ' deposits and decreasing loans have been large increases ill cash reserves and United States govern- > ment bonds. Cash resources at I the middle of this year equalled 30 per cent of the total deposit and other liabilities. This ratio compares with 14 per cent in 1929 and 23 per cent in 1933. The ratio of goverumentb onds to total liabilities this year was 22 per cent. The ratio in 1929 was only 4 per ' cent and in 1933 was but 10 per cent.

Cash resources and United States government bonds combined now make up a primary reserve of 53 per cent against the banks' total liabilities. Viewed from one standpoint, this high reserves is a great safety factor for the depositors. It must be remembered, however, that the inconief rom these assets is small, and that in the long run , depositors would be better off if a greater portion of the banks', funds were invested in loans. Cer-, tainly depositors cannot expect any ' increase in interest paid on their [ deposits until funds now idle or , invested in low-yield government bonds can be converted into high-er-yield investments. A reasonable forecast for state; banks during 1937 would be a con-1 tinuation of the increase in de-i posits, but a reversal of the in--crease in cash reserves and government bonds. The improvement in general business should result in increased borrowing, not only by business men but also by con-1 Burners and home owners. Increased borrowing should result in increased earnings for the bank. It is possible that banks will be able to increase the interest paid oil deposits. but it seems more probable that interest rates will remain f6w | for several years. i Stockholders in state banks should look forward to 1937 with [some (fegree of optimism. After I several years without dividends land after the payment of assessments and the purchase of capital I debentures to qualify the bank for insurance, stockholders in most state banks may reasonably expect some return to their investment. The stript classification of assets by both state and Federal examiners has eliminated doubtful assets from the bank. Many of these doubtful assets have increased in value, and recoveries should be substantial during the coming lyetfr. Losses should be small on ] loans and investments now held by the banks, and current earnings should improve with the increase in new loans and discounts.

The most important aspect to be watched will be the quality at new loans made. Banks now are lu excellent couditku* as regards slow

and doubtful asset's. The necessity for Tfftreasing loans fTlid discounts in order to increase earnings may lead some banks into making unsound loans. This danger will be enhanced if the present recovery in business should develop into a “boom.” Fortunately, the experience of the past few years has resulted in a more serious and more strict examination of banks by the state, and the bank examiners may be counted on to apply an effective brake should the banker become too optimistic. The fact that practically all state banks have their deposits insured should also prevent any unhealthy expansion of loans and investments, since insured banks are also subject to examination by the examiners of the Federal Deposit Insurance Corporation. (Public acounting problems of the new year will be the subject of tomorrow's series.)

1 Household Scrapbook | By Roberta Lee Piano Keys Piano keys can be keipt white by rubbing them occasionally with a doth dipped in alcohol, then drying with another cloth. Do not allow eny alcohol to get on the varnish as it is a varnish remover. Suede Shoes Suede shoes that have become spotted with rain can be renewed by rubbing the spots gently with an emery board.

* Heads New Show, ■ ■ ■ * **** J* ' JACK OAKIE, as president of the mythical Oakie-Doakie College ot the Air, is star of a new radio show broadcast over the Columbia coast-to-coast network every Tuesday evening. Musical background for the program is furnished by Benny Goodman’s swing band, Georgia Stoll's orchestra and best of real undergraduate talent selected from colleges and universities throughout the country. Oakie-Doakie College also brings you guest stars —noted screen and radio comedians acting as visiting professor® and lecturers,

Business and Financial Ctlook for 1937 | By ROGER W. BABSON I

Babson Park. Muss., Jan. 1.1 predict that 1937 will be our fit st year of real posperlty since 1929. It will be a year of genuine business expansion, considerable real estate activity, constant labot I troubles, shortages of skilled workjers, rising prices and living costs, j and brisk retail trade. Nearly every line will eupoy good gains in both volume and profits i with the heavy industries showing the greatest percentage improveI merit. Tuck this forecaat away for a check-up next December and predict that you will find general business around 8 per cent above today’s figures and not far from the 1929 peaksl Business at Normal A year ago at this time my forecast was: ‘‘By next Christmas gen eral business, as measured by the Babsonchart, should be hugging the X Y' Normal Line and heading into another period of prosperity. Statistically, that is exactly where business is today. We are right square on normal! For the first time In fourteen years, we are crossing the "X-Y' Normal Line on the way into a new prosperity era. A moment s retrospect shows the tremendous distance that we have covered since we touched bottom in March, 1933. The total gain in business has been 78 per cent! Nearly a third of this rise has come during 1936 alone. 1936 Remarkable Year The year just closed has been a remarkable one in many ways. While it is generally believed that elections do not change the basic course of business, most analysis concede that they are temporarily upsetting. The tide of recovery was running so strong in 1936, however, that it swept over every obstacle and washed out the old year in a burst of glory. Tiiere are scarcely any figures on record that can match 1936 s steady gains in jobs, payrolls, industrial activity, profits, and dividends. Topping off the year was a real post-election boom. Wave after wave of wage boosts and bonuses and dividend increases and extras lifted Christmas trade back to old-time levels. Eight Per Cent Gain The momentum picked by by this surge of buying will carry into the New Year. Business in 1936 was good. Business in 1937 will better. My estimate is for a 10 per cent gain in the first six months over the initial half of 1936. It is harder to make a definite prediction for the second half, but I think a 5 per cent gain over the closing months of the old year is within reason. This would put my Babsonchart Index about 5 per cent above normal by the Fourth of July and approaching 10 per cent over normal by next Christmas. The entire year's gain should average about 7 to 8 per cent above 1936. Business will be above the X-Y line—in other words, in a prosperity era—for the first entire twleve month period since 1929! Unless— Labor Holds Whip-Hand It is seldom that there is no "un less. 1936 was an exception. Then there was no “but” to my bullishness. Today, however, there is one major question in my mind —the labor problem. It this issue is not handled properly, business could receive a very rude set back. Workers are in the most strategic position today they have ever held Labor leaders can tie prosperity in a knot if they call a general walk-oirt' or they can give prosperity a boost if they keep their heads Do not misunderstand me. I am not predicting grave national labor tie-ups, even though some current situations do look threatening and even though there will be a big increase in the number of strikes I merely say that if labor leaders try to push too far and too fast in their demands for higher pay and shorter hours, we are in for serious trouble.

Four New Factors There are four new factors in the picture today which give labor such astrong hold ou industry, first, is the tremendous gain in industrial production and profits Second, is the steady rise in living costs. Third, is the big gain in !a . bor s influence as indicated by the election results, k inally, there is the powder-keg" row between the Dewis and Green factions. These factors, particularly the latter, all increase the tension of the situation. The real key to this puzzle is the Administration and its policy toward labor. If trouble should develop, Mr. Roosevelt with his almost unanimous backing could awing the tide of battle iu which ever direction he wished. Because of the President’s unprecedented I wwker-following. the outlook for , labot troubles depends to a large extent on Washington. Congress Not Harmful -n -act. much depends on Washjlngtou as (ar as most problems are .concerned. Not so many years ago it was the vogue to take careful

U * . R«*r ? Rrbson • soundings in Wall Street before making an annual forecast. Today the most important preparation for my outlook letter ia to drop the leadline in the Potomac. A fortnight before Christmas, 1 visited the Capital. Experienced observers there believe that the President may have more trouble than the public imagines in holding his huge Democratic majority together. The Washington consensu* i* that Congress will not be harmful to business in spite of the voter*' roar of approval of the New Deal. There will be a lot of barking but little biting The emphasis of the coming session will be on perfecting legislation already passed and adding a few amendments thereto. I doubt if a hamperful of new reform laws will be jammed through. Bond Inflation to Continue It will be two years before another election, and the average Congressman will be worrying less about his constituents and more about the Constitution. Along this line, I expect to see a big improvement in federal finances. An effort will be made to cut expenses. Relief aid will be continued but not on the boondoggling scale of the past three years. The government's income should rise steadily as 1937 works along. But despite Washington forecasts to the con-, trary, I doubt if the gain in revenue or the siash in expenditures will be sufficient to bring the budget into balance by June 30, 1938. This means that inflation will gain ground this year. It has already taken big strides in recent years although the general public is entirely unaware of it. Public debt has grown $16,000,000,000 since July 1, 1930. Tax receipts have doubled since 1933. Still the Treasury is forced to raise funds to pay the public bills by selling government bonds. This money finds its way into the banks in the form of jobholders’ or contractors’ deposits. The bank then “invests” these deposits by buying more government bonds. The cycle repeats itself over and over again, building up bank deposits and ballooning the public debt. Thfs is camouflaged inflation. It will continue in 1937 aidpd by another form of inflation—the check or credit type, similar to that which we had in 1929. When all is said and done, every one of the various inflations has the same effect—the boosting of prices and the speeding up of business and building activity. Sees Home Building Boome Four years ago the building of a new home or factory was a relatively rare sight. Only eight homes were built at the depression low in 1933 where a hundred were built in 1929 and where fifty are being built today. Home building is a typical capital goods industry. It is a direct thermometer of public confidence. Once confidence returns there is a veritable stampete to take advantage of real estate bargains and to get under the wire on building costs. A feature of 1937 should be a real boom in home Non-residential construction, aside from public works, should also enjoy a big gain. Plant expansion or modernization is a necessity for many concerns. Prices of building materials are on the verge °vm ® harp marku P- Demand for 8 tiled building mechanics will goon be reflected in higher bids on

Thumb-Nail Sketch of Roger W. Bah n’s 1937 OUTLOOK rnKrmpyj Eight Per Cent Gain For Year RF\l fwow Not ,le Harmful To Busij BI ii iwv* E: Improvement—Rents filer STRiuiu : Boom In New Homes Year’s ■tun’ I4W». Possibility Os Grave Labor Trlles FARM PRiri?« W'Kher Wages And More Jobs I —Total Farm Income ■ht’ r RFTAii tkhuw Clothing To Lead Sharp Advai Adlfrtk w )E: - liig Since 1929 I STnrkJ ‘ n ”” s ' Quotas Ten to Twenty Pil’enl i> \ik ’ Higher But Good Selection Vitl Fopvir-K- '■ Ceiling—Watch Money Poli Slmm adv W -° Euro P ean War In 1937 - ARY; |< i rg) , Y ea,, qj Prosperity Since Li*

jobs. Bargal existing strut I tures are pr.B-li puked 0 , '| If you must Smite, renov I repair, or bu|t out y Our ‘| tracfs NOW! I ExtenAes Now The same L to rent,. „■ you have a f* e | ease « it NOW for alear p eriO d. v ■ ter a 10 per cAance last y«, rents will proftm rease anotit | er 5 per cent ■ -maybe mor. I in well-locate As. With tin wH optimistic pro! for building 1 and I hlward to a fitable year fl,i estate men with rising valid with activity at least 20 pel above 1934. The outlook l>al estate and building is tyt|>f the outlook for all capitalds indwfa suclT as locoml ships, power < stations, and Bnery. These i business are duL much sharper percentage fcvement than the consumer | 8 industries j Employment inleavy group a I year ago was 1 cent of normal; today It i*er cent; and by next Christul should be 95 per cent. Where T> Jobs The 3.000,00t1vy industry I workers who arelobb-ss should I dwindle to 2.001 by the end I of 1937. This wßeave only (,■ 000.000 out of joist December fl and of this nuia4.OOfl.oot) & the floating jobllr are ployaUle. By failbest | new jobs will blthese iffidustries. My advicl young I men looking for a jobL is to Team a building or many trade or to join the sales I of a building material* orlhinery concern! Skilled workers (going to de- a mand. and get, hllpay in 1937. ■ While total emplolt should increase perhaps 5E per ceflt, wage rates shoulrl stepped up by at least that arrl or more on the average. PayAtals should | show a rise of not (than 10 per | cent. But remenlfatter pay- I rolls mean heavier (icing costs. | The latter in turnin either a | mark up of selflhg is or a cutting of profit margil Sees RisinAes Three years agfeher costs would have meant Ler profits, j This year they wi*an higher i selling prices. Thisllay season we are waving gool to a buy- | ers' and employers® ket. For ' the first time since I, we shall see prices during Icontrolled ! by the seller and waliy the employee. Gone, temporarilylleast, ar« the days when ordelere taken ! below cost simply tofe the ma- : chinery from gettinAty. Gone ■ are the days when Bic would work for nothing sij to keep up their courage. ißdition to higher producing coAe Robin-son-Patman price alf strictly interpreted, will pusfctribution costa higher. All thill be mirrored on wholesale wetail invoices. Sharp Mark-Up&aJ Wholesale quotatiorl 784 products—from raw niai to fin- . ished goods —have I 3 per [eeuT in the last threAths and are at a new top sincfctember, 1930. Next Christ malls price average will be 5 pel ,t—maybe 10 per cent —high* an it is today. Four years ago wht ras selling at the lowest pri n three and a half centuries- cents a bushel. Because it v cheaper than to pay freight, c was being burned for fuel laufc coal. Milk was being p< I on the streets to reduce over plies of I butte? and cheese. T was » bounty on baby pigs. Today wheat' is aroui 135 per Corn is bein n4'”rte<) from Argentina. Mliht .Ik. but- ' ter sold in United Stat narkets ■ comes from abroad. I n is a delicacy once again. T1 ill go*' s to show how much mo owerful are the rules of nature I economics than the laws ot m. The drought, the AAA and >rt BU l’' plies, plus better bu ss an!i heavier consumption, 1 doubled farm prices durin; le l* st four years. Now. what >ut the outlook for farm prices > yearGood Year On Fi i Grain and cotton prb del* llll on the weather and pla g. B*’ CONTINUED ON PAG UVE’