Indianapolis Times, Volume 46, Number 233, Indianapolis, Marion County, 7 February 1935 — Page 18

WaUSt. Business Might Do Better if Left Undisturbed. __ BY R \I.PH lIF.NDERMIOT linn Writer

N r EW YORK. Feb. 7 —Money, at best, is a complicated subject. But it is made still more complicated by those who try to do tricks with It The same is true of the general subject of economics. The chief difficulties most people experience in their treatment of

these subjects, in the opinion of this department, is that their approach is wrong. They depend too nuch on theories and rule of thumb and give too little attention to the human equation. Some claim, for instance, that there is not enough money ir the country; that if we increased

m

Ralph Bendetshot

the supply the depression would vanish overnight. Others go into long discourses over the “velocity* of turnover, and point out that we. have as much money or more in circulation now than we had at the peak of the business boom. The basic fact of the matter probably is that the reason wny people do not spend more and why bu: mess is not better is that we are ail looking for the greatest amount of security possible. We know that the money we have can be used anywhere to acquire the things we do not have. We are not so sure that we could do the same thing if our capital were tied up in potatoes, real estate or factories. m * * ABND we still would not be con- . cemed if we knew that if we spent the money we have we could get more. Money at the present time is scarce because it is being hoarded. Whether it is being hoarded in the banks or in mattresses is of little importance. How can the money be forced out of hoarding? There are at least two ways open. We can cheapen the things which the public can use at present or at some later date, or which they believe they can resell m the future at a profit. That would serve to bring out the money which is now held in excess of the needs of the holder. It would cause a turnover of goods, which is business. Or we can frighten the people who are hoarding money into belie) ;ng the greater security would be afforded if they hoarded commodities or tangible and usable things. This could be done by destroying. or threatening to destroy, the credit of the United States, which, of course, is all that there is behind the money with which we do business. m m m JUST how much we would have to cheapen goods before It would start moving in sufficient volume to restore easiness is a question few people should venture to answer. And just what we mieht do to destroy the credit of the government sufficiently to get people to trade their money for goods is another difficult question. Either course would have embar-ra.'-ing complications. A cheapening of goods would destroy the collateral behind much of our debts, which means bankruptcy on every hand, and with possibly more harm than good to business in the end. A destruction of the credit of the government would wipe out much of the debt burden because the money with which debts are paid would be rendered less valuable. But at the same time it would be difficult to do business of the value of the medium of bus.ness exchange were destroyed. Business already has begun to improve some and shows hopes of continuing its recovery, so it might not be a bad idea to leave it alone for a time and see what happens. Nature frequently accomplishes results when doctors fail. REPEAL AIDS GLASS Container Production Equalled That of 1929. By Times Special NEW YORK. Feb. 7—Containerglass production in 1934 equalled, and probably exceeded, that in 1929. according to a discussion of the glass industry by Leonard A. Drake in the current issue of Barron’s Financial Weekly. •Thanks to the repeal of prohibition. the production of liquor and beer bottles has risen materially and should continue at 10 per cent of the total container output, the article states.

On Commission Roic

Quotations below sre airrage wholesale prices twin* ottered to buyers bx local ecmmmion d' .Urs I rails —Grapes. California Emperors. 27lb boa. *2 75 Banana*. *\e a lb Apples. Ind.ar.a Jonathans. 5! $5 Golden Delicious. tl 75 * 15 lemons. Bunki*t.36o<i. *■*2s Orapefruit. Texu*. seedless. *3 25. Ar rona. *4s. 70s and *f *2 50 Limes. Mexican, per carton 12s 25c. Byram. seedless per hundred. *3. Pears. Oregon V "Jo boa *3 50 Pineapple .. 335. *♦ 25 j 150 Avocados. Florida, box *1 50 Strawberries Florida, pint, 15c per 26-pt. crate. l*c Apricots *3 a erase. Vegetable*—Cabbage S. rthern Danish. 50-b bag. 75c: red 50-lb. bo* 90c Near Teass cabbage. 90-lb bar *1 75 Onions. Idaho Wit Spanish, large. 50-lb. bag. *1 75*. 2. Michigan ye.low. med 10-lb. bar. 32c western white. 50-lb bag. *1 *5; M.chlgr. velloar. *i 25 Potatoes Green M >aala r.s. 100-lb bag (1 Si northern round wh. e. 100-lb bag. *1 10: Ohtos. 100-10 big 12 Idaho R se:. 10<3-lb bag *2 New Teaas Triumph* 50-lb cat *2 New F.- da Tr: m.phs. ; >.-.e!. *2 50 Sweet p atoes Indiana Ji' ' > bushel. *lO5 Tennessee Nancy Halls, bushel. *1 35 Beans stnrgless tamners *5. Celerv. Florida *125 a crate. California. 34 50 a crate; medium dc.-er. 75c, ;uaebo dozes. *1 25; hearts, bur.ch. *1 o Cucumbers 5 do."n in bo*ea. (3 25 * do ten In boxes *4 E: c ve. per crate (150 Egg Plant. *2 25 dozen. Kale, bushel. 75c Lettuce h • isC. 15-ib basket *1 75 Arizona Iceberg head lefuce *3 75 Mangoes. Florida crate. *lO. Mint, bunch. 15c. Parsley, do ten. 35c Pea* hampers. *3. Spinach. Texas, bushel. *2. Ca..forma, in crate. (4 50 Radishes, dotes 60c Tomatoes. 10lb earten. *1 40® 1 50. Florida original. (2 75 Turnips. bushel. 75c. Parsnips, bushel. *1 33 Beets, bushel. *: 25 Carrots bushel II 25 100-lb. sack. *175 All Quotation* subject to change up or down. nUTTS AND VEGETABLES ißy Unitei PressCHICAGO Feb. 7 —App.es— M.ehigm Mclntosh bushel. 11506113. Jonathans. *1 53* 175 Cranberries Massachusetts, y, bbln. *4 50a* Cauliflower—Calltom is crates. (1 <> 150 Cabbage—Wisconsin. lb*, lbs . *125 Sweet Potatoes— Ter.iiesae*. bushel. Mcittl IE Carrots— Cttlomta. crated *2 7*it3 Rlmcis and Michigan, bnshe! ouoc Turnips—Calttoraia. eritea. (3 504:2 75: Übnots. bushel. 25c Lettuce—Western crates *2 75i 2(5 rnrsnipr—UUnots. bushel. *oo6oc Beets— Texas. l crates. 75cb(l; Llmou bushel, got Me. Beans—Florida bushel, green. (2 *2-15. Ttwns’oes— Met ran -sgs

♦ ♦ Abreast of The Times on Finance ♦ ♦

PAGE 18

MONEY LAWS SEEN NEEDING

FURTHER LIGHT

Many Fiscal Problems Held Requiring Interpretation of Court. Thu U another of a Kfiti of article* Written for the Indianapolis Times by members of the economics department of New Tork CnUeisitT's School of Commerce. Accounts and Finance. BY T. J. ANDERSON* JR. NEW YORK, Feb. 7.—The gold i clause decision will be one of the most significant Supreme Court de- ' cisions in history. It will be one of the most important construing the j currency powers of Congress. The clauses m the Constitution granting currency powers to Congress are few and brief. Congress shall have power, in the words of the Constitution, “to coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures.” Also it shall have power “to provide for the punishment of counterfeiting the securities and current coin of the United States.” In that section of the Constitution which restricts- the actions of the states we find also the statement that no state shall "coin money; emit bills f credit; (or)' make anything but gold and silver coin a tender in payment of debts.” No Strict Construction. The currency powers have not received a strict construction, however, at the hands of the Supreme Court. Rather, the court had adopted a policy of liberal construction comparable to that followed in its interpretations of other great substantive powers of Congress. Referring to the substantive powers, Mr. Justice Strong, writing the majority opinion in the legal tender cases, said: “They have never been construed literally, and the gdVemmcnt could not exist if they were. Thus the power to carry on war is tfie power to ‘declare war.' The whole system of the transportation of the rails is built upon the power to establish postoffices and post roads. The power to regulate commerce has also been extended far beyond the letter of the grant.” Seven Powers Enumerated The powers of C :gress over the currency have been extended through liberal judicial interpretation of such powers much beyond these discernible from a reading of the Constitution. The Supreme has recognized the following powers of Congress which are important in connection with the nation’s currency system: 1. The power to establish a national bank or svstem ot national banks possessmir authority, among other things, to issue a circulating currency in the form ol bank notes. 2 The power to confine bank rote currency to that issuable under its own jurisdiction, as a means of attaining a uniform and sound bank currency. 3 The power to lew a prohibitive tax upon state bank notes as a means of establishing a uniform and sound bank note currency under Federal control. 4 The power to issue, as an insfru- | mentality of war finance, an Inconvertible or fiat paper currency. 5. The power to prescribe that such flat currency shall be a legal tender for private as well as public debts, even though such designation may have the effect of reducing the value of outstanding contracts. 6. The nower to reissue such flat money as a peacetime circulating medium and to continue im such a time its legal tender quality; and , 7. The power to issue coins of the same denominations as those already current bv law but of less intrinsic value than these, du to a reduc ion in metallic content, esen if such reduction in weieht enables debtors to discharge their debts bv the pavment of coins of the less real value." Yet a number of important questions relative to the scope of Congressional authority in currency matters remain unanswered. Gold Clause a Puzzle Foremost among such undeciued points is the question involved in the gold clause cases. Is it within the power of Congress, in order to carry out its policy in currency matters, to abrogate, by Congressional resolution, the so-called gold clauses in contracts? The Supreme Court will answer this question soon. Another question of much importance which is likely to arise sooner or later is whether the currency powers of Congress are sufficiently comprehensive to permit legislation establishing Federal supervision over all banks which deal in demand deposits and thereby provide bank de- ; posit currency. Other unanswered questions as to! the currency powers of Congress I exist. For example, is there any limit to the power of Congress to; issue coins of the same denominations as those already current by 1 law but of less intrinsic value because of reduced metallic content? 1 Or. again, what are the limits with- ! in which Congress may delegate power over the currency to the President? It will be remembered that the socalled Thomas Inflation Amendment j to the Emergency Farm Relief Act of 1933 granted extensive powers oxer the currency to the President. Was this legislation constitutional? Probably these and other questions concerning the limitations of the Constitution upon the currency powers of Congress will be answered by the Supreme Court by the time | it has passed upon the validity of the various New Deal laas. Retail Coal Prices Ttt following prices represent quotations from .eadir.g InCianapolu coal dealers A 25-cent carrying charge per ton j wiU be added DOMESIIC RETAIL PRICES Indian* lump *5.20 Ecg 5.03 Nut 480 Brazil Block—cum® 6 54 Ecg 531 Nut . 6.04 Glendora— Lump 5 3495.59 ! Eeg 5.18 S 5.43 I N-: 4.95 (i 5.20 1 West Virginia and Easters Kentucky • Group B> 8.7f 57.16 i eecihonta* and New River, smokeit 1 -* 7.3098 32 ! Coke egg and nut .. 890 ! Pea Coke ... 7.40 i An'hraote 10 13012 88: NEW BRAKE BLOCK MADE TRENTON. N J., Feb. 7.—Production of anew brake block for truck j and bus brakes which in constant use proves virtually indestructible* was announced today by officials of the Thermold Rubber Cos., Trenton, N. J.

INDIANAPOLIS, THURSDAY, FEBRUARY 7, 1935

SCENE ON JAPANESE BOURSE AS NEW YEAR BEGAN

% i*®*' 1 BBBS9R

Acme Photo. Pictured above is the interior of the Tokio Stock Exchange Building, at the session begining operations for 1935.

New York Stock Exchange Prices

(By Thomson St McKinnon) 11:00 A.M. Prev. Oils— High. Low. N. Y. Close. Barnsdail 6 1 * 6 6% 6% Const! Oil 7% 7% 7% 7; 2 Cont of Del .... 17% 17% 17% 17% Houston (new).. 2'* 2% 2% 2% Mid Cont Pet 11 : ll‘s 11% 11 Ohio Oil 9% 9 5 a 9 5 a 9% Phillips Pet ... 14% 14% 14 1 2 14* a Plymouth Oil ... 7*a 7% 7% 7*4 Pure Oil 6% 6% 6% 6*2 Seaboard Oil .. 22-, 22>a 22% 22*4 Shell Un . 6 3 < 6% 6% 6 3 4 Soc Vac ... 13 a 13*2 13% 13*2 S Oof Cal 29 5 a 29 5 a 29% 29% S O of Ind 24 23 3 a 23 3 a 24 3Oof N J .... 39% 39% 39% 39*2 Texas Corp . 19*4 19 19*4 19% Tidewater Assn B*2 8% B*2 !'• Steels— Am Roll Mills ■ 20*2 19% 19*4 20 Eeth Steel 28 5 a 28‘a 28 5 e 28 3 4 Bvers A M .... 15-4 15% 15% 16*2 Inland Steel ... Si% 51% 51% 51% Mid Steel 10*2 10*2 10*2 10% Natl Steel . . . 47*4 37>a 47*a 47 Rep Iron & St 13’a 12% 12 3 4 13 Rep Ir fc St rfd 40% 40% 40% 45 U S Pipe & Fdy 18 18 18 17*4 U S Steel .. 55% 34’a 35% 35*4 U S Steel pfd 87 86% 87 56% Youngs nS&: T 17>a 16% 17% • IG% Motors— Auburn 22% 22*2 22% 22% Chrysler 37% 36% 37% 36% Oen Motors 30 3 s 30 30 3 s 30 Graham Mot ... 2% 2 3 a 2% 2% Hudson B’2 B*4 B’2 B*4 Hupp 2 3 2% 2 3 4 2 7 a Nash 15 *4 15 15‘a 15% Packard 4* 4 4*4 4*4 4% Studabaker ... 1 % 1 1 Yellow Truck ... 3% 3% 3% 3*3 Motor Access— Bendix 14% 14*4 14% 14% Borg Warner . 23 3 4 28% 28*4 29 Briggs 25*4 24‘a 25*4 25 Budd Mfg 4’ 4 4’a 4 Budd Wheel ... 3’e 3*4 3*a 3*4 Eaton Mfg 18*a 17% 18’s 18 Elec Auto Lite 23 7 a 23 3 4 23 7 a 23’ 2 Houdaille A .... 7% 7% 7% 7% Murray Body ... 6*a 6 6 6*a Stew Warner ... 7 7 7 7 Timken Roll 33% 32% 33V, 32 3 a Timken Det Axle 5% 5% 5% 5% Mining— Alaska Jun ... 16% 16% 16% 16% Am Smelt 33% 33% 33% 33 Anaconda 10% 10% 10% 10% Cerro De Pasco 40% 4040% 39% Dome Mines ... 36% 36% 36% 35% Gt Nor Ore )0% 10% 10% 10*2 Howe Sound ... 44 44 44 44 Ins Copper ... 2% 2% 2% 2% Int Nickel 22% 22% 22% 229% Isl Creek Coal . 31 31 31 31% Kenneco*t Cop . 16% 16 16% 16 Park Utah 2% 2% 2% 2% Noranda Cop ... 32% 32 32 31% Phelps Dodee .. 14% 14 V 14% 14% U S Smelters . 110*4 110 110 110 Vanadium 16% 16% 16% 16% Amusements— Fox Theat 10% 10 10 10* 2 Loews Lnc 31% 31% 31% 31*2 Radio Corp .. . 5% 4% 4% 5 Paramount .... 3% 3% 3% 3% Warner Bros ... 3% 3% 3% 3% Tobaccos— Am Tobicco B 81 81 81 $2% Phillip Morris 38% 38 38% 38% Reynolds Tob B 47 47 47 47 Rails— Atchison 42% 42 42% 42 Atl Coast Lines 27% 27*4 27** 27% B .fc O 10% 9% 10% 10% Can Pac 12% 12% 12% 12% Ch <fc Ohio 41 % 41 41% 41 Chi & Gt W r pfd 3% 3% 3% 3% C M & St P 2% 2>* 2*4 2% C M A- St P pfd 3% 3% 3% 3% Chi N W 4% 4‘a 4% 4% De!a A' Hud ... 32% 32% 32% 32% Del lac & W . 14% 14 14% 14% Erie 10* 10’4 10% 10% Grt Northern pld 13 12-', 13 12% 111 Central ... 12% 12 12% 12% Lehigh Valley . 8% 8% 8% 8% M K & T ... 4*a 4% 4% < s a MK & T pfd ... 9% 9*2 9% 9% Mo Pac 1% l 7 a l’s 2 N Y Cent .... 16% 16 16% 16 N Y New Haven 6% 6% 6% 6% N Y OntA-West 4% 4% 4% 4% Nor Pacific . 16% 16% 16*2 16% Penn R R . ... 20% 20 20% 20 Sou Pac 15*8 14 14% 14 Sou R R 11% 10% 11 11V, Union Pac . 97% 98% 97% 96% West Marvland . 7% 7% 7% 8 Am Steel Fay .. 16 15% 15% 15% Bald Loco s*, 5 5% s*B Ger, Elec 23 22 *2 23 22% Pullman Inc .. .47 47 47 47 Wes- Air Br ... 24% 24*4 24*4 24 Westingh Elec... 37 36% 37 46% Utilities— Am Pr <5: Fui IV 3% 2% 2% 3'* Am Pow & Lit 2*2 2% 2% 2% A T A- T .103% 102% 103 ' 103 Am Wat Wks 11*2 11% 11*4 12% Col Gas & Elec 6% 6 s , 6 s , 6% Com A Sou 1 1 1 1 Consol Gas 19 18% 19 18*4 Elec Pwr A Lit . 2% 2% 2% 2% Ir.t Hvdro Elec. 2% 2 2 2*B Int T A T Bs,8 s , B*2 B*B B*2 Nat Pwr A Lit 6*2 6*2 6*2 6% North Amer 11% 11% 11% n% Par OA E ... 13% 13*2 13% 13% Peoples Gas .. 20% 20% 20% 19% Pub Serv NJ .. 24*2 24% 24% 24% std Gas 3 s a 3*B 3% 3% Stone A Webster 4 3*B 4 4 United Corp 2% 2% 2% 2% Un Gas Imp 10% 10% 10% 10*2 Ur Pwr ALt A 1% 1% 1% I*2 Western Union .28 27% 27% 28% Rubbers— Firestone 15% 15*8 15% 15*4 Goodrich 9% 9% 9% 9% Ooodvear 21% 21 21% 21 Kelly Spring ... 1% 1% 1% 1% U S Rubber 13*2 13% 13% 13% U S Rubber pfd 34*2 34*2 34% 33% Miscellaneous— Allis Chalmers . 16 15% 16 16 Am Can 112% 111 3 , 112% 112% Am Mach A Fdv 20% 20% 20% 20% Anchor C’ap 16 15% 16 15% Burroughs Add 14*4 14% 14*2 14% J I Case 53 3 , 52*, 53% 52% Conti Can "64% 64% 64% 64*2 Caterpillar Tract 39 38 39 38 Crown Cork 24 24 24 24* a Prere ACo 27* 2 27 27% 27% Eastman Kodak 112 111% 112 111*^ GiUe-te 13% 13% 13% 13% Chddea 23% 23% 23% 23% Ir.t B Mach 152*, 152*, 152% 151% Inter Harv 40 39% 40 39*; Natl Cash Reg 15% 15% 15% 15*2 Owens Bottle 85% 85% 85% 86% Rem Rand . 8% 8% 8% 9 Underwood E ... 57 57 57 $8 Foods— Armout Com s*, 5% 5% 5*4 Armour %*~r pfd 67*, 6" 67% 67 Beatrice Cream . 16% 16% 16% 16% Borden Prod . 24 23% 23% 23% Cal Packing 37% 37% 37% 37% Canada D G Ale 12% 12% 12% 13 Corn Prod 62% 62% 62% 62 Crm of Wheat .. 37*-, J7*a 37% 37% Gen Baking ... 8 8 8 7% Gen Foods 34% 34 34 33% Gold Dust 16 15*8 16 15*8 G W Sugar 27% 27% 27% 27% Na*l Biscmit 27’, 27% 27% 27% Natl D Prod ... 15% 15% 15% 15% Puritv Bak 8 B* 8% B’, Std Brands 17% 17% 17*, 17*, Ur. Biscuit 24% 24% 24 % 2 United Fruit 72 71% 72 71 ■. Ward Bak “B’’ 1% I*2 1% 1% Retail Store*— Best A Cos 35*2 35% 35% 35% First Natl Stores 48% 48 48 47% Or Un Tea 3% 3% 3% 3*2 Hahn Dept Sts 4% 4% 4% 4% Kresge & 20% 20% 20% 20% Kroger Groc ... 25% 25*. 25% 25% Mac? R H 38>* 38*2 38*2 38% McCrory St 9*2 9*, 9% 9% McLeUan St 12% 12% 12% 12% Marshall Field .. 8% 8% 8% 8% May Dept St ... 4040 4040% Mont Ward 2ii* 25) 25% 25%

Penney JO 65 65 65 65 Safeway St 39 39 39 39 Sears Roebuck .. 34 33*/s 34 33*4 Woolworth 54% 53Vi 54% 53% AviationAviation Corp... 4% 4% 4% 4% Boeing Aircft 8% 8% 8% 8% Curtiss Wright 2% 2*4 2% 2% Curtis Wright A 8% BVa BV, 8 Douglas Air ... 21% 21*4 21% 21*4 Nor Am Av 33 33 Speery Corp ... 814 BVs 8*,4 8% Unitd Aircft £w 12% 12% 12*4 12% Chemicals— Am Com Alcohol 26*4 26*4 26*4 26 Col Carbon ... 71 70% 71 70% Com Solvents ... 20 19% 20 19*2 Dupont 92*4 92% 92% 92% Freeport Tex ... 20*2 20% 20% 20*2 Math Alkali . 27% 27% 2V% 27*4 Natl Dis inew) 26% 25% 26% 26 Tex Gulf Sulph . 34*8 34 34% 34 Union Carbide . 45% 45% 45*4 45% N. Y. Bonds\ • Reprinted trom yesterdavi DAILY BOND INDEX 20 20 20 60 Inds. Rails Util. Bonds ! Today 86.3 81.5* 91.1 86.6 : Yesterday 86 5 81.9 92.4 86.9 Week ago . . 85.8 83.6 92.4 87.6 Month ago 86.5 85.5 89.9 87.3 •New 1935 low-. (Copyright. 1935. bv the Standard Statistics Cos.. Inc.) U. S. GOVERNMENT BONDS (Bv Fenner A Beane.) Liberty* Prev. Close, close Ist 3%s 1932-47 104.16 104.13 Ist 4%s 1932-47 103.25 103.24 4th 4%s 1933-38 (uncalled) ... 103.30 104 4th 4*4s 1933-38 (called) ’02.2 102.2 Treasury* 4%s 1943-45 114.25 114.28 4s 1944-54 110.3 110.3 3%s 1946-56 108.23 108.24 3%s 1940-43 106.3 106 3%S 1943-47 105.24 105.21 3%S 1941-43 106.6 106 3*is 1943-45 104.5 104.1 3*is 1941. 105.22 105.20 3%S 1944-46 104 3%s 1946-49 103.29 103.25 3%s 1949-52. 103.15 103.9 3s 1951-53 102.31 102.28 3s 1946-48 102.12 102.8 Home Owners Loan Corn 2% 1949 98.17 98.17 3s 1952 100.21 100.20 4s 1951 101.9 101.9 3 ’,S 1964 .102.18 102.20 3s 1949 100.22 100.20 •3s 1947-42 100.21 •Just listed todav. DOMESTIC Prev. Close, close Alleg Corp 5s ’44 68V, 70 AUeg Corp 5s ’49 59% 59 Alleg Corp 5s ’SO 22 22% Am Frgn Pow 5s 2030 56 56% Am Tel A Tel 5%s ’43 112% 112*4’ Am Tel A Tel 5s 65 113 113 Arm A Cos (Del) 5%s ’43 103% 103% Atl Coast Line 4s ’52 101 101 Atl Coast Line 4%s ’64.. .... 89% 90 Atch Top A S Fe 4%s ’4B .107% 107V* Am Wat Wks 5s ’44 94% 95 Am Rolling Mills 5s ’3B 106% 107 Balt A Ohio 5s ’95 66% 68 Balt A Ohio 6s ’95 77 78 Balt A Ohio 4%s ’6O 51 52 Buff Roch A Pitt 4%s ’57 65 65 Beth Steel 5s 36 103% 103% Chi Milw A St Pi 5s ’75 21% 22% Chi Milw A St P 5s ’75 6 5% Chi Milw A St P 5s 2000 100 100% Cleve Un Term 5s ’73 96% 96% Cleve Un Term 4%s ’77 89% 89% Col Gas 5s May ’52 80% 80% Col Gas 5s 61 77 77 Can Pac Perp 4s 85% 86% Cent Pae 5s ’6O 77% 77 Big Four 4%s '77 71V* 71% Big Four 5s 63 80 81 Colorado A So 4%s ’BO ... 57 56/a Chi A West Ind 4s ’52 • 95% 95% Chi A West Ind 5%s ’62 ... 102% 102% Chi A Nor West 4%s ’49 16% 17% Con Gas 5s '57 104 103% Chesa Corn 5s '47 103 Vi 104 Dodge Bros 6s ’4O 107 106% Del A Hlds 4s ’43 86*4 86% Erie 5s '75 66% 67 Erie 5s ’37 66% 67 Gen Cable s*%s ’47 89 89% Grt Northern 7s ’36 90% 91% Grt Northern 4’is '76 76 76 Grt Northern 4%s '77 76 76% Gen Stl Cast W W 5%s '49 ... 89% 89% Hud A Manhat Ref 5s ’57 .... 88 87% 111 Cent 4%s ’66 54% 55% II Cent 5s ’63 70% 72 Interlake C A I 5s 'sl 76 Interntl Hv Eiec 6s ’44 45% 47 Interntl Tel *► Tel 4%s '39 ... 69% 69% Interntl Tel A Tel 5s '55 .... 65% 66% Interntl Tel A Tel 4%s ’52 ... 60% 61% McKess A Rob 5%s 'SO 96% 96% Midvale Stl 5s ’36 103 103 Natl Dairy 5%s ’4B 102% lOdG Natl Steel 5s '56 106 106% Nickel Flate 4%s '7B 59% 59% Nickel Plate 5%s '74 69 76% Nickel Plate 6s '35 62% 63 . N Y Cent 5s 2013 60 61 N Y Cent 4%s 2013 (old)a .... 5*% 56% Nor Amer Cos 5s '6l Bv% 85% Nor Pac 3s 2047 74% 74 Nor Pac 6s 2047 99% 100 Nor States Pow 5s '4l 105% 103 New Orleans Term 4s '53 .... 83% 84% Otis Steel 6s ’4l 84% 85 Pen Rv 4%s ’B4 101 V, 101% Penn Rv 4%s ’Bl 102 102% Penn Rv 4%s '7O 93% 94 Pac G A E 5s ’42 108 107% Portland Gen El 4%s ’6O .... 54% 55% Para Publix 5%s ’SO 66*r 67% Penn PAL 4%s ’Bl 100% 100% Postal Tel A Cab 5s '53 47% 47% Rem Rand WW 5%s ’47 99’- 99% Sinclair Oil 6%s ’3B 104 * 104% Shell Union Oil 5s '47 102-2 102% Sou Pac 4%s '6B 62% 62% Sou Pac 4%s 'Bl 61 61 Sou Pac 4s '49 65% 65 Sou Rail 4s ’56 56 56% Sou Rail 6s ’56 75 76 Sou Rail 6%s '56 78 78% Texas Pac 5s 'BO 90% 90% Texas Pac 5s ’79 90% 90% Texas Pac 5s ’77 90% 92% Union Pac 4s ’47 109 109% United Drug 5s '53 92% 93 U S Rubber 5s ’47 93% 93’, NY NH A Hart 6s '4B 43 43 NY NH A Hart 4%s '67 37 38’, Warner Bros 6s '39 54% 35% Western Mary 5%s ’77 98 38*2 Western Marv 4s ’52 91 % 91% Youngstown S-A Tss ’7O .... 94% 94% Youngstown SAT 5s '7B .... 93% 94% FOREIGN Argentina A6s ’57 90% 91 Argentina B6s 'SB 90*2 91% Brazil 8s ’4l 32% 32% Car.adi*n Govt 4s ‘6O ........105*2 105% Denmark 5%s '55 100% 100% German 5%s ’65 34% 3-*% German 7s '49 44% 45% Italy 7s 'sl 94 93% Japan 6%s ’54 * Poland 7s ’47 12 2! 4 DO% Tokio Cltty 5%s ’6l 16*, 76% Yokohama 6s '6l 82% 82% FEDERAL FARM LOAN BONDS •Bv Blyth A Cos.) Sid. Ask. 4s July 1. 1946—44 102*, 103% 4s Nov. 1. 1957—37 101% 102 *, 4s Mav 1. 1958—38 101% 102% 4%s July 1, 1956—36 102 102% 4%s Jan. 1. 1957—37 102% 102% 4*,s May 1. 1957—37 102% 102% 4*,s Nov. 1. 1958—38 102% . 4%s May 1. 1942—32 101% 101% 4%s Jan. 1. 1943—33 101% 101% 4%s Jan. 1. 1953—33 101 101 % 4%s Jan. L 1955—35 101 101** 4%s Jan. 1. 1956—36 102*4 • 5s May L 1941—31 101 101% ta Nor. 1. 19*1—31 ........-101 101%

Drugs— Bristol Myers .. 34V, 34*4 34*4 34 Coty Inc 5% 5 3 4 5 3 4 5% Lambert 27 27 27 26% Lehn A Fink ... 16*4 16*4 16*4 16% Sterling Prod . 60% 60*4 60% 60% Un Drug inew) . 10% 10% 10% 10 3 4 Zonite Prod .... 4 4 4 4 Financial— Adams Exp .... 5% 5*4 5*4 5*4 Allegheny Corp . 1% 1% 1 3 4 1% Am Int Corp ... 5% 5% 5% 5% Lehman Corp .. 10% 10% 10% 10% Transamerica .. SV 5 5% 5% Tr Conti Corp .. 3% 3V4 3% 3% Building— Am Radiator ... 13% 13% 13% 13% Johns Manville 50% 49% 50% 49% Libby Owens Gls 28 27V* 27% 27% Otis Elev 14% 14V, 14% 14% U S Gypsum ... 46% 46% 46% 46% Household— Congoleum 31% 31% 31% 31 3 4 Kelvinator 16% 15% 16% 15% Proc A Gamble 45% 45% 45*4 45% Serv el Inc 7*4 7% 7% 7*4 Simmons Bed .. 8% 8% 8% 8% Textiles— Amer Woolen .. 7% 7Ve 7% 7*4 Belding Hem ... 12% 12% 12% 12% Celanese Corp . 30% 29% 30% 29 Collins Aikman.. 12V, 12V, 12% 12V, Gotham Hose .. 4% 4% 4% 4% Indus Rayon .. 31 30*4 31 30*4 Chicago Stocks (By Abbott, Protor A Paine) 11:00 Prev. A M. close. Bendix 14% 14% Butler Bros 6 j 6% Cities Service 1% 1% Cord 3% 3% Libby 6% 6% Swift 17% 17% Swift Int 33 3 Walgreen 28 V, 30 Berghoff 2% 2% Borg Warner 28% 38*4 Grt Lakes Dredge 17% 17% Nov York Curb (By Abbott. Proctor A Paine) Prev. 12 (Noon) close. Allied Mills 12*4 12% Alum Cos of Am 42% 43 Am Cyanide "B" 16 16 Am Superpower 1 1 Atlas Corp 8 8% El Bond A Share SV, 5% Ford of Europe 7% ••• Hiram Walker 29 29V, Imperial Oil .Ltd 16*4 16% Natl Bellas Hess 1% 1% St Regis Paper 1% 1% Std of Ky 19% 19% Teck Hughes Gold 3% 3% Wright Hargraves Min . 8% ... CHAINS UNSETTLED IN OPENING TRADES Corn Shade Higher, but Others Tend Lower. By United, Press • CHICAGO, Feb. 7.—Grain prices were unsettled on the . Board of Trade today. Wheat, oats and rye tended lower while corn was a shade higher. At the start wheat was % to % cent lower, corn was unchanged to up Vi cent, oats were unchanged* to off V 4 cent, and rye was unchanged to down Vi cent. At mid-afternoon wheat at Liverpool showed some firmness but this went without special effect in the local market. Broomhall reported there was a moderate inquiry for foreign, wheat in the United Kingdom. There was pressure in corn in the English market, because of a pause in the consumptive demand. (By James E. Bennett) 11:00 Prev. Wheat— High. Low. A. M. close. May 95% .94% .95*4 .94% Julv 88% .87% .88% .87*4 Sept 86** .86% .86% .86% Corn— Mav 83V, .82% .83 .82% July 79 .78% .79 .78% Sept 76% .75% .76% .75% Oats— May 48% .48% 48% .48% Julv 42% .41% .42% .41’* Sept 40% .39% .48% .40 RyeMay 62*4 .60% 62*4 .62% July 63 .62% .63 .62% Sept 63% .62% .63V* .62% LOCAL CASH MARKET City grain elevators are paying 87 cents lor No. 2 soft red wheat. Other grades on their merits Cash corn No. 8 vellow 80 cents and oats 45 cents. Hides and Skins Hides—Green country cow* and steers. 3%c flat; green country bulls and glues, 2%c flat; green country calf hides, 4c flat: green country kip 3%c; No. 1 large horse hides with full heads, shanks, manes and tails. *2.50: medium size. *2. All No. 2 grade horse hides. 30c less; glues and ponies half price. No. 1 rendered tallow. 4®4%c; No. 2 at value. Yellow grease. 3%04c: oar* grease. 3%03%C. KROGER SALES INCREASE By Times Special CINCINNATI. Feb. 7.—Sales of the Kroger Grocery and Baking Cos. increased 12 per cent for the first four weeks of 1935, over the same period of 1934, according to figures revealed by the company here today. The increase for the same period of 1934 over 1933 was 5 per cent. m -

RAILS LEAD IN RECOVERY ON STOCK MARKET

Rally Comes After All Groups Dropped to New Lows. By United Press NEW YORK. Feb. 7. Railroad shares led a recovery on the Stock Exchange today without increase in volume, which continued extremely light. The rally came after all groups had been depressed into new low ground for the year or longer—industrials for the year, rails since 1933 and utilities since 1932. Around noon the rails were up fractions to more than a point. Union Pacific reached 97%, up IV4; Atchison, 42%, up %; New York Central, 16%, up %; Pennsylvania. 20 7 s, up Vs, and Southern Pacific, 14%, up %. Steel shares recovered after an early setback and at noon United States Steel was 35%, up %, and Bethlehem. 28%, unchanged. Chrysler rose % to 37% to head the automobile group. Utilities firmed fractionally. Building Issues, golds, silvers and coppers were steady to firm. Woolworth rose IV* to 54% in its section. Case was up nearly a point in the farm implement shares. The only weak spots around noon were Republic Steel issues, which declined on announcement of government suits to halt the merger of the corporation with the Corrigan, McKinney Steel Cos. and its subsidiaries. Money and Exchange INDIANAPOLIS STATEMENT Clearings *2.041,000.00 Debits 5,151,000.00 _____________ Local Livestock HOGS Feb. 1. *7.90® 8.10 $8.15 6000 2. B.oo® 8.10 8.15 2000 4. B.oo® 8.25 8.30 4000 5. 8.15® 8.25 8.25 5000 6. 8.15® 8.25 8.25 4000 7. B.lo® 8.20 8.20 4500 Light light: (140-160) Good and choice.. $7.00® 7.75 Medium 6.50® 7.35 Light weight: (160-180) Good and choice... B.lo® 8.15 Medium 7.60® 7.90 HBO-200) Good and choice . • 8.15® 8.20 Medium 7.65® 8.00 Medium weight: (200-220) Good and choice .. 8 15® 8.20 (220-250) Good and choice .. B.lo® 8.20 Heavyweight: (250-290) Good and choice... 8.05® 8.10 (290-350) Good and choice... 7.90® 8.05 Packing sows: (275-350) Medium 7.15® 7.40 (350-425) Good 7.00® 7.25 (425-550) Good 6.85® 7.15 (275-350) Medium 6.50® 7.00 Slaughter nigs: . , , (100-140) Good and choice... 5.25® 6.75 Medium 4.25® 6.50 CATTLE —Receipts, 1000— —Steers—-(sso-900) Choice *10.25®12.25 Good 9.25® 11.50 Medium 6.75® 9.50 Common 5.00® 7.00 (900-1100) Choice 11.75® 13.25 Good 9.50®12.25 Medium 9.25® 9.75 Common 5.00® 7.50 (1100-1300) Choice [email protected] Good 9.75®12.50 Medium 7.50®10.00 (1300-1500) Choice 12.25® 13.50 • —Heifer*— Good ,10.00®12.50 (500-750) Choice 9.00® 10.00 Good B.oo® 9.00 Common and medium 4.00® 8.00 (750-9001 Good and choice.... 8.25®10.50 Common and medium 4.25® 8.25 —Cows— Good 5.75® 7.50 Common and medium 3.50® 5.75 Low cutter and cutter 2.00® 3.50 —Bulls—(Yearllnes # Excluded) Good 4.75® 5.75 Common and medium 3.25® 4.75 VEALERS —Receipts. 500— Good and choice $9.00® 9.50 Medium *6.50® 9.00 Cull and common 3.00® 6.00 —Calves—-(2so-500) Good and choice ... 6.25® 9.00 Common and medium 3.50® 6.25 —Feeder and Stocker Cattle——Steers— (soo-900) Good and choice .... 5.50® 7.25 Common and medium 4.00® 5.50 (900-1050) Good and choice ... 5.75® 7.50 Common and medium 4.25® 5.75 —Cows— Good '• 3.50® 4.25 Common and medium 2.75® 3.50 SHEEP AND LAMBS •-Receipts, 2000— Lambs. 90 to 120 lbs., good and choice $8.50® 9 00 .Common and medium 6.00® 8.50 90-120 lbs., good and choice .. 3.50® 4.50 Sheet): (120-150) Good and choice .. 3.00® 4.25 All weights, common and medium 2.00® 3.25 Other Livestock (By Times Special) LOUISVILLE, Feb. 7.—Cattle 200, moderately active trade in all slaughter classes; market fully steady; bulk common to medium steers and heifers, *s® 7 25; better finished kinds quotable to around *9; bulk beef cows, s4@s; good kinds and smooth heifer types to $5 25 and above; bulk low cutters and cutters, $1.75®3.25; thin shelly low cutters down to $1.50; sausage bulls mostly,’s4.so town; bulk beef type stock calves $600®7: good quotable higher. Calves—2so, steady: better grades mostly, $7.50® 8; strictly choice, $8.50; medium and lower grades $7 down to S4 or less for light culls. Hogs. 600, steady to 10c higher; advance on weights from 180 lbs, up and sows; top and bulk better, 180-250 lbs, $8.10: 255 lbs. up. *7.65; 160-175 lbs, *7.35; 140-155 lbs, $6 85; 120135 lbs, $5.90; sows, *6.35. Sheep 50, steady; medium to good lambs, s7®B; choice quotable to $8.50; light throwouts, $6 and fat ewes, $3:50 down. Produce Markets Delivered in Indianapolis prices; Heavy breed hens. 14c: Leghorn hens. 7c; colored springers, 13c: heavy stags, 9c; Leghorn stags, 7c; old roosters. 6c; ducks, full feathered- and fat, 10c: geese, full feathered and fat. 8c: all classes of guineas, 15c; No. 1 strictly fresh country run eggs, loss off. 23c. Each full case must weigh 55 lbs. gross, a deduction of 10c a pound for each pound under 55 lbs. will be made. Butter—No. 1, 38®39c; butterfat, 36c. Quoted bv the Wadley Cos. (Bv United Press) CHICAGO. Feb. 7.—Eggs—Market, Arm: receipts, 2902 cases; extra firsts. 32c: fresh graded firsts, 32c: current receipts. 30c; dirties, 28c; checks, 27c. Butter—Market, unsettled: receipts, 4638 tubs; extra firsts (90-91% scoret. 34%®35c; extras (92 score). 35%c: firsts (88-89’i score), 34® 34%c; seconds (86-87% score), 33®33%c; specials. 36®36%c; standards. 35%c. Poul-try-Market, easy: receipts, 20 trucks: hens, 13%®17c: springs. Leghorn, 14%c: broilers. Plvmouth Rock. 23c; capons, 6 to 7 lbs.. 33c; old roosters. 14c; ducks. 18® 21c: Turkeys. 18@20c: geese. 16c: stags. 15%c: springers. 19%®20c. Cheese —Twins. 17® 17'c: daisies. 17%@17%c: Longhorns. F?%®l7%c. Potatoes—Supply liberal: demand and trading slow; market steadv. Wisconson round whites, one car fine qualitv, 80c: Idaho russets. *1.45® 1 50: United States No. 2, *1.05. Arrivals. 51: on track. 302: shipments. 731. CLEVELAND, Feb. 7—Butter—Market, steady: extra. 39%c. Eggs—Market, firm; extra whites. 30c; current receipts. 29%c. Poultry—Market, steady; fowls. 19® 20c; Leghorn fowl. 16®17e; ducks, light. 17® 18c: ducks. 5 lbs. and up. 20@2fc. geese. 17® 18c; turkevs. young. 20c. Potatoes— Maine. *1 15®1.25 a- TOO lb. bag: Ohio* mostly 75®80c a 100 lb. bag; New York. 85c a 100 lb. bag; Michigan, 80£85c a TOO lb. bag.

What Does It Mean? Savings Bank—An institution which takes in deposits, usually setting a maximum for the amount to be accepted from one depositor. It can demand advance notice of withdrawal and favors long-term investments. Loans and investments are restricted by laic.

Old Formula of Micawber Is Advocated

Expenditures Must Be Kept Within Income, Dickens Character Said. BY JULES BACKMAN AND A. L. JACKSON Editors, Economic Statistics. Inc. By Times Special NEW YORK, Feb. 7—Micawber, the spendthrift, gave to David Copperfield a formula full of wisdom. This formula, which appears to have been overlooked by a national government, was; Income £2O; expenditures, £l9-result, happiness. Income £2O; expenditures, £2l -result, misery. Current figures of the Federal government show that expenses for the first seven months of the fiscal year have passed the $4,000,000,000 mark and that they are about twice the size of current income. Must Pay Debts Thus far only a small proportion of the increase in spending has been met through increased government revenues. Many persons fail to realize that the government, like an individual, must pay its debts if it is to remain solvent. If the government spends more than it takes in, it must at some future time repay the sums which it has overspent. This repayment either takes the form of hearty taxation or repudiation of the obligations which were undertaken in order to finance the deficit. This repudiation is usually accomplished through inflation. What we must realize is that the debt which is now being piled up must be repaid. It really represents present spending of future purchasing power, with the result that the real purchasing power of the future must necessarily be reduced. Relief Bill an Example Take the work relief bill, which is now before Congress, as an example of this policy. The Administration calmly asks for the right to spend $4,000,000,000 more than it hopes to take in in the form of revenue in the next fiscal year. No provision is made for new sources of revenue to finance these expenditures. At the same time attention is carefully diverted from the fact that these heavy expenses will have to be paid out of future taxes. If we are going to spend the money now why not increase taxes now? Then everybody will realize that the money which is spent must be raised from some source; that the ultimate source is his or somebody else’s income; that is, of course, unless the road of inflation is taken. Is it not reasonable to assume that if we adopted a pay-as-you-go policy the present complacency with which many people observe the growing deficit would be rudely disturbed? PORKERS WEAK TO UNCHANGED Majority of Prices 5 Cents Lower; Light Classes Stationary. Slight weakness again was evident in hog trading at the local stockyards touay despite a continued light run of supplies on hand. Prices were mostly 5 cents lower than yesterday’s average on all classes except light kinds which remained unchanged. However, receipts reported from surrounding livestock centers continued at a fairly heavy rate, exceeding the normal figures at several places. Hog receipts here were, estimated at approximately 4500, exceeding yesterday’s supplies by only 500. Local demand continued weak with interest about evenly divided j throughout the various classes. I Initial trading was at a less active pace than in previous sessions of the ! week. Top price for good and choice grades today dropped to $8.20. The bulk, 160 to 275 pounds, cashed in at SB.IO to $8.20, while heavies, scaling 275 pounds and upward, brought $7.85 to $8.05. Lighter kinds, weighing from 130 to 160 pounds, sold at $6.50 to $7.50, while others, from 100 to 130 pounds, held at $5.25 to $6.25. Good packing sows ! brought $6.75 to $7.40. Holdovers numbered 267. General trade in the cattle market was less active than yesterday and the majority of classes were mostly unchanged. Early steers were valued to sell from $lO down. Receipts were 1000. Veals showed little change, selling at $9.50 down. Receipts were 500. With practically nothirig done in the lamb market, prices on most kinds were weak at $8.75 down. Heavies cashed in at $8.25 down, while throwouts ranged from $6.50 to $8.25. Slaughter sheep brought $4.50 down. All western lambs remained unsold. Receipts were 2000. SOCONY-VACUUM CO. DECLARES DIVIDEND Payments to Be Made Semi-An-nually Hereafter, Directors Say. By Times Special NEW YORK, Feb. 7.—Directors of Socony-Vacuum Oil Cos. have declared a dividend of 15 cents a share and announced that hereafter dividends will be paid semi-annually. The 15-cent payment is the same as paid in the last quarter of 1934, i but J. A. Brown, executive com- | mittee chairman, said that it was not to be construed as establishing any regular rate. Earnings of the company for 1934 were estimated to have been more than the net of $22,545,463, or 71 cents a share, reported for 1933. The company's current assets position was somewhat reduced during last year, due to increased capital expenditures, it was explained.

FORCED SALES HOLC STARTED PLACED AT 58

Only 10 Have Resulted From Deliberate Default, Fahey Says. By Times Special WASHINGTON. Feb. 7.—The Home Owners’ Loan Corp. reports j that of the 58 foreclosure suits which it \has so far instituted throughout the United States, only 10 have resulted from deliberate default by home owners who apparently believed that no action to force payment would be taken by the corporation, the remainder being due to abandonment, resulting from death of the owner or similar misfortune. Referring to the 10 cases of willful delinquency, John H. Fahey, HOLC chairman, said: “The public interest calls for general recognition that individual loans from this corporation are valid obligations, and that no compromise can be made with borrowers who dt iibreately refuse to live up to their contracts on the mistaken assumption that they can do so without penalty. Payments Made Promptly “The great majority of our borrowers are making their payments to us promptly, just as they pay their household bills and other private obligations. Our record of collections to date compares favorably with that of private lending institutions, our delinquencies are confined mainly to the relatively small number of people who are in genuine difficulty, resulting from unemployment or other causes beyond their control. They are entitled to co-operation from their creditors in getting back on their feet. “The corporation intends to keep on giving helpful consideration to every home owner borrower whose past credit standing is favorable and who proves to be in such acute financial distress that he is utterly unable to make his contractual payments at this time. “On the other hand, the corporation can not tolerate the refusal of any of its borrowers to live up to their obligations, in cases where they are obviously able to do so. A number of our borrowers now face the loss of their properties through foreclosure because they willfully defaulted on their payments. Wrong Impression Spread “It is to be regretted that an.irresponsible element has spread the impression that this corpration does not insist upon collecion of Any such sqgestion implies that swindlers and .eliberate defaulters are entitled 6 encouragement in their bad tith at the cost of the entire publi-, which this corporation represents. “I am glad to say that only a small number of peoie are so far threatened with tfe loss of their homes in foreclcure by following such misleadiiv advice. The number is bound to increase, however, if more of our borrowers are deluded into neglecting promissory obligations which unqueit.mably they are able to meet. Eve?* such case of willful default is subject to immediate foreclosure action.” INSURANCE OFFICIAL DISCUSSES POLICIES Howard Nyhart, Underwriters President, Gives Figures. An average of $308,219 was given every hour of each day in 1934 to beneficiaries and living policyholders by American legal reserve life insurance companies, Howard E. Nyhart, president of the Indianapolis Life Underwriters Association, said today. “Direct payments of benefits under life insurance policies touched the lives of -*t least 21,000,000 persons last year,” Mr. Nyhart pointed out. “Death claims alone were paid on 800,000 persons. During December, 1934, insurance companies reported an increase equal to six times the monthly gain 'over the preceding six-month period. “That the confidence of citizens generally in life insurance is increasing is shown by the 10.1 per cent increase in new business written in 1934 over the previous year," he explained. JEWEL TEA APPROVES SECOND ‘WAGE EXTRA’ Payment to Be Made on Basis of 5 Per Cent of Total Income. By Times Special CHICAGO, Feb. 7.—A second “wage extra” has been approved for employes of the Jewel Tea Cos., Inc., and its subsidiary. Jewel Food Stores by directors of the company, it was learned today. The extra payment will be made April 15. The payment will be made on the basis of 5 per cent extra on the total income of each worker, including wages or salary, commissions, bonuses and other special awards up to a total average income of SSO a week. Officers and senior executives of the company are exempted from participation in the plan which includes only employes who have continuously worked for the company from July to Dec. 29, 1934. The payment will not be made on earnings above SSO a week. BUILDING AND LOAN STOCKS Railroadmen's Bought and Sold SCMLOSSMOS.WV.COi 137 E. Wash. St. LL 231*