Indianapolis Times, Volume 47, Number 185, Indianapolis, Marion County, 12 October 1935 — Page 14

Review j i Highlights of the News During This Week. BY VINCENT LYONS Time* financial Editor ON thf same day that Secretary of State Cordell Hull made a public appeal for all Americans to respect President Roosevelt's statement of policy on financial and commercial relations with Italy and Ethiopia. 120 Americans sailed for Europe on an Italian ship, „ lightly passing over the chief executive's warning that travel under such conditions was at their own risk. Meanwhile, Premier Mussolini was making further explorations into the nation's gold vaults in order to pay for munitions and supplies needed to wage a war in Africa. During the 10-day period ended Sept,. 30 the Bank of Italy's gold supplies were reduced $6,731,900 to $346,489,100. Since the end of May the shrinkage in the metal hoard amounts to $127,775,70. Her gold supplies at pre.scnt -ire equivalent to only 27 per rent of money in circulation, against a 41.5 per cent ratio on May 31, last. The week found the nation’s two leading security figures passing the buck on the question of inflation. Charles R. Gay, president of the New York Stock Exchange, in a speech Wednesday night warned that the stock market provides an inviting field where inflation on a grand scale might occur. Consequently, he hinted, the stock exchange could not he held responsible for any dire results. a a a THE next, day James M. Landis, recently appointed chairman of the Securities and Exchange Commission, declared that an inflationary boom in the stock market would only too likely find his agency “holding the bag,’’ but powerless to act. Monetary policies would be mainly responsible for any inflationary market and the SEC has not the authority to deal with such a matter, he added. On the floor of the Stock Exchange the “bulls” were making the most of the episode. On Thursday the professional trading element considered the intimation of inflation important enough to warrant advances*of one to three points in miscellaneous issues. Yesterday they were able to keep the rise boiling in the face of substantial profit-taking activities. The current week marked the appearance of many condition statements of New York and Chicago banking institutions in response to calls by state banking authorities. Chief feature of the New York reports was the climb of the National City Bank into second place among the nation's banks, usurping the rank of the Guaranty Trust Cos. In Chicago the item of interest was that banks are having a difficult time trying to expand their loans. nun NEWS pertaining to public utility corporations was singularly arresting. The nationally known Associated Gas sic Electric Corp., giant holding company, took important steps. The first was the announcement of the resignation of H. C. Hopson from all official connection with the company and any of its subsidiaries. The second was the revelation that plans are under way to simplify its corporate structure in accordance with the provisions of the public utility holding company bill. The J. P. Morgan financed United Corp. is to take a different route. It is rumored that the company will seek exemption from the act by the simple process of having its status changed to an investment company. Only in one or two instances does this unit have stock control of any operating utility. The Wheeler-Rayburn bill, however, stipulates that stock ho’d ngs up to 10 per cent are sufcient to bring a company under its provisions. In New York Mayor La Guardis, Public Friend No. 1 of municipal ownership of utilities, encountered a little trouble. The appelate division of the New York Supreme Court affirmed an injunction restraining New York City from presenting to voters a referendum on construction of a municipal power plant. Capital friehtened out of Europe oy the war scare flowed into tlrs country in increasing volume in the week. Some of it is finding its way into the nation's security and commodity markets; some of it is augmenting the tremendous hoard no\r lying idle in Federal Reserve Banks. At she close of September monetary stocks of the United States amounted to $15.48*1,276,690, anew high for alt time. Gold accounted for $3,367.819,791 of the total. Product ion of electricity by the domestic power and light industry for the preceding week plowed forward to 2.863,483.003 kilowatt hours, a record high. Car loadings, benefltting from a resumption of activity in the bituminous coal fields, spurted. The automobile industry was making ready for the national automobile show' in New Yoik next month. Dividend news and corporation earnings reports were largely favorable. Standing out among the dividend announcements was the resumption of payments by the Stewart-Warner Corp. after a lapse of five years. STOCKHOLDERS ATTACK NEW DEAL LEGISLATION Congressmen Urged to Protect Interests of Utility, By Timm Special NEW YORK. Oct. 12—Believing that the utility holding company act might destroy their investments, Electric Bond and Share Cos. stockholders today attacked the New Deal Administration for passing the • death sentence” provision. Holders urged officers and directors to ask the co-operation of more than 143.000 equity holders in taking steps to see that representatives in Congress act to preserve their interest, it was reported. Investors attending the meeting v r "'d negatively on the resolution, off'red bv Hamilton C. Pell, former congressman, to prevent the comr n y from using funds to inform j- holders the state of affairs on ar- legislation which might, directly o~ -.uirectly, inflyence their political voce. '

♦ ♦ Abreast of The Times on Finance ♦ ♦

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UNITED CORP. MAY OPEN GAP IN UTILITY BILL Company May Seek Status Under Law as Investment Unit. BY JOHN T. FLYNN Times Special Writer NEW YORK, Oct, 12.—The United Corp. may petition the Securities and Exchange Commission to be exempted from the requirements of the Securities Exchange Act, because it is an investment company and not a holding company. The United Corp. is a large company organized

oy the J. P. Morgan firm in 1929 to own large blocks of shares in a number of utility companies in wi ich that firm had been interested. It has been called an investment trust sometimes and sometimes a holding company. Whatever it is, it owns a large interest in the Public Service Corp. of New Jersey, the Unit-

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ed Gas Improvement Cos., the Niagara Hudson Power Corp., Consolidated Gas Cos. of New York, etc. Upon the SEC’s decision will hang the fate of the utilities bill. The President said, before the measure was passed, that the law would not affect investment companies. May Bring Loophole Ts the SEC follows the lead of the President it will have to hold that United Corp. is an investment company. And if it does a hole will be made in the utilities law wide enough to drive, not merely a coach and four, but almost all of the utility holding companies in America. Here is an illustration. Companies A. B. C. and D are utility operating companies. They belong to X, a holding company, which not only owns the shares but exercises control and management. If X is forced to demobilize, all that, is necessary is to organize another company called Y. which will be legally styled an investment trust. It will take over the shares of X, but there will be a proviso that no control w r ill be attempted over the companies. Then A. B, C. and D can arrange to organize a management company which wrill belong, not to the investment company Y, but to the operating companies. Makes Law Futile Thus while the top company will be apparently changed into an investment trust, no actual change will have taken place in the facts of the whole organization. Just another one of those legal fictions will have been created by which all law's are made futile and even a little foolish in the realm of business. This test of the utility act is inevitable. And it will be far more effective than the legal test of the death sentence which is being pressed. For it will result in a literal wiping out of the act as a practical measure of regulation and reform. The President’s loose statement may now return to plague the commission and, perhaps, destroy the act. (Copvrisht. 1935, NEA Service. Inc.) FOREIGN GOLD LIFTS AMERICA'S HOLDINGS Government Hoard Almost Equal to Half World Supply. By United I’resx WASHINGTON. Oct. 12. The government’s huge gold hoard rapidly approached half the size of the world’s stocks today when officials reported record-breaking holdings of $9,463,000,000. Since Sept. 1 the hoard has increased by $260,000,000 as the result of a hurried flight of the metal from Europe. Because of the huge imports and the Roosevelt monetary program, j gold stocks have been increased from $3,200,000,000 to $9,463,000,000 in less than three years. With the mounting government stocks and no indications of a stemming of the inflow' Treasury officials rushed construction of c newgold vault to be built at Fort Knox, Ky. This depository is expected to furnish safekeeping for billions of dollars’ worth of metal. 140 VISIT GAS PLANT Representatives of Bond Houses Guests at Luncheon. The plant of the municipally owned Citizens Gas and Coke Utility was inspected by 140 representatives of investment houses yesterday. Cyrus S. Eaton of Otis & Cos., and A. E. Bryson and R, E. Simond. vice president of Halsey, Stuart & Cos., were among those present. The visitors were luncheon guests at the Indianapolis Athletic Club. Mayor Kern. City Controller Boet-' cher. William J. Mooney, president of the Utility District trustees, and Russell j. Ryan, a director, spoke at the gathering. FILM COMPANY FORMED New l nit to Develop Technicolor, Has Prominent Backers. )/ 7 nm s S/it cml HOLLYWOOD. Oct. 12.—Formation of a large film producing company. headed by David and Myron Selzniek. with intentions of developing technicolor as one of its chief contributions to the industry, was announced here today. The new film firm, it was said, will probably take over the assets and contracts of David O. Selzniek Productions. including contracts with the United Artists distributors. C. V. Whitney, Joh . Hay Whitney, and Robert Lehman, banker, all of New York, and Dr. A. H. GianmniA California banker, will back tht Enterprise. L

INDIANAPOLIS, SATURDAY, OCTOBER 12, 1935

Maybe There’s a Few Vitamins in It!

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RECOVERY LAW VIEWS SOUGHT U. S. Chamber of Commerce Poll to Determine Reaction. By United Prexx WASHINGTON, Oct. 12.—Organized business today began its poll to determine reaction to President Roosevelt’s far-reaching “recovery laws.” In a questionnaire sent to its 1500 member organizations, the United S t ates

Chamber of Commerce. which is headed by Harper Sibley, asked business men to answer these questions: “1. Should there be extension of Federal jurisdiction into matters of and local concern? "2. Should the

Sibley

Federal government at the present time exercise Federal spending power without relation to revenue? ‘•3. Should there be government competition with private enterprise for regulatory and other purposes? *'4. Should all grants of authority by Congress to the executive department of the Federal government be within clearly defined limits?" The Chamber also gave its members a list of New Deal legislation along with an outline of its aims and purposes, including arguments against action by Congress during the Roosevelt Administration. Local Livestock HOGS Oct. Bulk. Top Receipts. 7. $11,154! 11.25 $11.30 3000 8 11.15® 11.25 11.30 3500 0 11.25® 11 35 11.40 3000 10. 11.204! 11.30 11 30 4000 11. 11.00® 11.20 11.25 * 4000 12. 11 004111 20 11 25 1500 Light Lights 1140-160 Good and choice sll.oo® 11 20 Medium [email protected] Lightweights. 1160-1801 Good and choice . 11.004111.25 Medium ....... 10 404} 11.00 1180-200) Good and choice . 11.104i.11.20 Medium [email protected] Medium weights 1200-220' Good and choice . 11.1045 11.15 (220-2501 Good and choice . 11.00® 11.10 Heavyweights (250-290) Good and choice . 10.8045 10 85 (290-350) Good and choice . 10,[email protected] Packing sows. (275-350) Good 9.754*10.00 (350-425) Good 9.50® 9.85 (425-450) Good 9.2545.' 9.75 (275-3151 Medium 9.0045 9-50 Slaughter pigs. 1100-140) Good and choice .. 9 65®10.65 Medium 8.75® 10.30 CATTLE —Receipts. 100— (500-900) Choice $lO S04?ll 50 Good 8 7545)11.00 Medium 7.0045! 9 00 Common 5 004? 7.00 (900-1100) Choice 9.254511.50 Good 9.2545)11 50 Medium 7 254s 9.25 Common 5.254? 7 25 (1100-1300) Choice 11 554512.50 Good 9 504511.75 Medium 7.2545 9 50 (1300-1500) Choice 11 754512.75 Good 9 75@11 75 Heifers (500-750) Choice 92545 10 2 5 Good 8 004? 9.25 Common and medium 4 004? 8 00 (750-9001 Good and choice ... 8 254510.50 Common and medium 4 25® 8.25 Cows Good 5 254? 6 25 Common and medium 4 254? 5 25 Low cutter and cutters 2 754? 4 25 Bulls good 5.504? 6.25 Cutter, com and med. bulls... 4.00® 5.50 VEALERS —Receipts. 100— Good and choice SIOO 004511.00 Medium 8.00'®10.00 Cull arid common 5.50® 8.00 Calves (250-500) Good and choice .. . 7 004* 9.50 Common and medium 4 00® 7.00 —Feeder and Stocker Cattle—-(soo-800) Good and choice .... 6.7548 8.75 Common and medium 4.504? 6.75 (800-10501 Good and choice • • 7.004? 8.75 Common and medium 4 50 ® 7 00 Good 4,004? 4.75 Common and medium 3.50® 4.00 SHEEP AND LAMBS —Receipts. 300— Lambs. 90 lbs down, good and choice |9 004i 9 75 Medium 7.00® 9.00 Ewes • 9fl-125> Good and Choice 3 004? 4.00 All weights, common and medium 2 504? 3 so • 120-1501 Good and choice 200 ® 300 LOCAL CASH MARKET Cttv grains lelevators are paying 98c for No. 2 sol# wheat Other grades on their merits. Tlash corn No. 2 yellow 79 cents and oats 31 cents.

Law to Regulate Bond Committees Is Forecast Possibility Advanced as SEC Resumes Probe of Salvador Protective Group. By United Prexx WASHINGTON. Oct. 12.—A new Administration-sponsored regulatory proposal to control activities of bondholders’ protective committees was advanced today as the Securities and Exchange Commission continued to delve into affairs of the Salvadorian bondholders group.

Indications were that legislation would be introduced in Congress early in January. The bill is expected to be based on knowledge gained from a series of SEC investigations. The present inquiry involves the ninth organization to be taken up, and the first committee for foreign obligations to be studied. Final Session Held Today’s hearing, scheduled to be the final session on the Salvadorian bonds, is expected to bring to light exactly how much money the committee has deducted from remit- i tances of the El Salvador govern- | ment, for interest and sinking funds.■ since the committee was organized J in 1922 after defalcations by the government. W. O. Douglas, commission attorney directing the inquiry, brought out yesterday that while the original deposit agreement called for a maximum of 1 per cent of the face value of t e bonds for committee expenses, a .ibsequent amendment to the ag.cement permitted the committee to withhold 15 per cent of all remittances from El Salvador to meet expenses and compensation for members. F. J. Lisman Testifies F. J. Lisman, president of the New York investment house which floated the three bond issues now in default, testified that from March, 1932, when the committee was organized, to March. 1935, he received $14,250 for services as a member of the committee. Irving B. Brunstrom. commission investigator who examined the committees records, testified that J. Lawrence Gilman, who served as committee chairman from its organization until his death in October, 1934. received $16,250 for his services. Total payments to committee members during the three years, Mr. Brunstrom said, were $80,250. BUDD CO. GETS LOAN Working Capital of Firm Increased by $5,000,000, Report Says. By Times Special PHILADELPHIA. Oct. 12.—Working capital of the Edward G. Budd Manufacturing Cos. was increased $5,000,000 through a loan of that amount by Philadelphia bankers, Edward G. Budd, president, announced today. Proceeds of the loan will be used to retire certain matured obligatinos and current bank loans, and to provide additional working capital to finance the substantial increase in the company's volume of business." RFC CITES POSITION Opposed to Ownership of Newspaper Securities. By United Press WASHINGTON. Oct. 12.—Recon- | struction Finance Corp. officials reiterated today that they were opposed to ownership by the corporation of newspaper securities. In answer to charges concerning influence on the press, it was stated that the RFC sold holdings of newspaper securities today are $300,000 in bonds of the Knoxville Journal. TIRE PRICE WAR ON By Times special NEW YORK. Oct. 12 A tire price war resulting in discounts up ito 70 per cent has started here, | Dow, Jones & Cos. announced toj day. The war is attributed to sharp I price cutting last spring.

All Major Markets Closed for Holiday

Leading security and commodity exchanges throughout the country suspended trading operations today in observance of Columbus Day. Miscellaneous livestock and produce markets, however, wrill be open. All European and Canadian exchanges, with the exception of the London Stock Exchange and the Paris Bourse, wrill be open. The foreign exchange market also v/ill be closed. Business in all markets wrill be resumed Monday.

NEW HAVEN SEEKS LOAN OF $5,000,000 Carrier Asks RFC to Furnish Funds for Expenses. By I Hi ted Prexx WASHINGTON, Oct. 12. —The New York, New Haven & Hartford Railroad today asked Jesse Jones’ Reconstruction Finance Corp. for a $5,000,000 loan to meet current expenses and at the same time requested the Interstate Commerce Commission to approve the loan. The railroad stated the funds

were needed for payment of taxes in several states and municipalities through which it operates and to meet installments of principal on equipment trust certificates, falling due later this year. A total of $8,399,000 a 1ready has been borrowed from the RFC by the New Haven, and

jjjPjjgF .v

Jones

it has also borrowed $6,777,000 from PWA and $3,428,000 from the Railroad Credit Corp. 2 SMELTERS REOPEN Murray Unit to Employ 300 Men for Winter Operations. fly Times Spccinl / SALT LAGE CITY, Oct. 12. Formal announcement of the reopening of two major smelters in this district was made here today. The Murray lead smelter of the American Smelting and Refining Cos. resumed operations on Oct. 1 after being closed since April 1, according to W. J. O'Connor, general manager. The other, the International Smelting Refining Cos., Utah unit of the Anaconda Copper Cos., will reopen its plant smelter early this month after four years of idleness. The Murray plant will employ approximately 300 men, the largest pav rill in several years, it was said. NET LOSS REPORTED fly Times Special CHICAGO. Oct. 12.—Net loss of Continental Motors Corp. and subsidiaries for the nine months endjed July 31 amounted to $529,519 after depreciation, taxes, etc., is was today. A net loss also ! was reported for the quarter endi ing the isame date.

COPPER TRADE OUTLOOK BEST IN FEW YEARS Total World Supply Off 7 Per Cent From Start of Year. Bu Timm Special NEW YORK. Oct. 12.—With copper selling at 9ri cents a pound, the highest since early 1931, the outlook for the industry seems the best in three years, from a domestic and world standpoint, a check of leading authorities revealed today. To forestall re-entry of high cost producers into the situation, the major producers are hoping that the marked demand will not lift the price much higher. At the prevailing price 80 per cent or more of the domestic producers can operate profitably. Recently domestic output has moved up from about 20 per cent of rated capacity to 27 per cent. Since June domestic consumption has been exceeding production. Similarly, European demand has been running high, with war preparedness a conspicuous influence. According to the Daily Metal Reporter, total world visible supply at the end of August approximated 550,000 tons, 7 per cent less than at the beginning of the year. Visible Supply Cut The United States visible supply approximated 248,000 tons at the end of August, contrasted with 355,000 tons at the beginning of 1935, and a high of 524,000 tons at the end of 1933. In January domestic producers held 226,000 tons. By Sept. 1 this had shrunk to 163.000 tons of refined copper in producers’ hands ready for sale. With domestic consumption currently running at from 50,000 to 55,000 tons a month, a threemonths’ supply is indicated in producers’ hands. At the start of 1935 consumption was running at about 38,000 tons a month. Indications are that by the end of the year domestic consumption should be running at the rate of 60,000 tons a month. Three Factors at Work Three main influences are said to be expanding demand. They are the marked increase in needs of industry, probability of higher prices and bullish foreign price situation. A meeting of foreign producers and the Fascist monoply Monday was called off because of the Ethiopian war. Italy has 50,000 tons of copper orders yet unfilled. In the event of economic sanctions being applied, how Italy will obtain this copper remains a question. In July the European consumption of copper approximated 89,000 tons, and in August it was 85,000 tons. Since June 1 foreign producers have curtailed production by 30 per cent, while the American producers were working at 20 per cent of capacity until recently. This curtailment was caused by unprofitable operation at low prices. Competition and price difficulties here and abroad have been well adjusted, spokesmen in the American industry assert. SEES EMPLOYMENT GAIN 90 Per Cent of Evansville Workers May Be Employed. By Timex Special EVANSVILLE, Ind., Oct. 12.—Approximately 90 per cent of this city's workers will be given employment when new factories are opened on a full-time schedule, Arthur P. Eberlein, secretary of the Chamber of Commerce, predicted this week. Speaking at a meeting of the Retail Credit Club, Mr. Eberlein said: “This will mean an increase of about $85,0Q0 a week over the present pay roll for about eight months out of the year. In 1929 between 94 and 95 per cent of Evansville workers were employed.” PRODUCTION AT PEAK Delco-Remv Muncie Plant Producing 10,000 Batteries Daily. Bit Timex Special MUNCIE, Ind., Oct, 12.—The highest production level in history was reached here last week by the branch plant of the Delco Remy Corp., Roy L. Plummer, superintendent, announced today. Operations were placed at 10,090 batteries daily. Asa result of anew schedule jto meet increased operating requirements, the plant’s pay roll has, been increased from 600 to 700 employes. The case plant at present ; is producing 8000 cases daily and expects to increase that number to i 9000 next week, It was said. REO STARTS ON CARS ! By Timex Special LANSING. Mich., Oct. 12.—The Reo Motor Car Cos. will start producj tion of its 1936 models next week, | Don E. Bates, president, announced j today. The company is beginning I the new season, which is predicted to be a banner year, in excellent financial condition, it was said. DIVIDEND DECLARED By Timex Special NEW YORK. Oct. 12.—Directors of the Mid-Continent Petroleum Corp. voted a dividend of 25 cents, payable Dec. 2 to holders of record Nov. 1. it was announced today. On June 1, 15 cents was paid.

Fidelity Trust Company Member Indianapolis Clearing House Association 148 E. Market St. General Commercial Banking Your Account Solicited

Gary Building at Peak Gant, Indiana’s industrial center, reports that September building operations were largest in dee years. A total of permits, aggregating 5107,879, urns issued during the month.

Btisigraphs TREND OF * FREIGHT CAR LOADINGS Z Ije-i - “ DOTTEi* LINE IS THE FST O TEH AVERAGE OF J ... THE SAMI MONTHS 3 \ - ® 80 u > P’l 2 "H- -tthtH'" % * X s i I i UI J m u c.JuLL i t. 1 4.4. tr. u sondjfmamjjas ™C PAOK£P corp general DIS'RieuTORS INCORPORATED investors September freight ear loadings were the best in four years. Compared with a year ago, shipments of grains, ores, eoal and miseellaneous freight inereased. I.ess-than-ear lot shipments remained about the same, indieating a eontinuance of hand-to-mouth buying.

STOCKS RENEW CEIMBIN WEEK Rise Ranges From Fractions to 7 Points: Turnover Increases. BY ELMER C. WALZER United Press Financial Editor NEW YORK, Oct. 12.—Stocks resumed their advance this week and closed fractions to more than 7 points above levels of last Saturday. Trading picked up steadily, but light volume early in the tveek held the total down to 6.929,012 shares, against 7.773.897 shares in the first five days last week. There was no sensational pickup in business, although the stock market would seem to be reflecting such change. The latter’s recovery was based partly on ability of industry to maintain a high operating rate; on outlook for keeping the Italian-Ethiopian war isolated; and further talk of an inflation boom ahead. Steel operations slipped off somewhat on slowness of automobile orders to develop. Steel stocks, how’ever, gained with U. S. Steel common up I’* 44 7 i at the end of the week. Chemical issues made the widest gains. Monsanto closed at 90’4, up 7V4; Allied 170 1 4, exdividend, up 514; and Du Pont 134, up 4%. Chrysler led the automobile group, reaching a new' high since 1929 at 7894. General Motors made anew high for the year, other motors were higher and so were the motor equipments. Mail order shares and other mercantile issues responded to the gains in trade. Westinghouse led the electrical equipments with a 4point gain. Consolidated Gas w'as up more than 2 points on the w'eek in the utilities. GOAL STRIKE HALT AIDS CAR LOADINGS Total for Oct. 5 Week Climbs by 76JQ6 Units. By United Prexx WASHINGTON, Oct. 12.—Aided by the resumption of activities in the bituminous coal field, freight car loadings for the week ended Oct. 5 increased 76.106 cars to a total of 706.877, the American Association of Railroads announced today. The total was 74.471 cars ahead of the corresponding w-eek last year. Coal traffic for the week expanded 65.524 cars over the preceding week when the coal strike was in effect. The aggregate also was 10.077 cars ahead of the same 1934 week. Miscellaneous freight loadings totalled 279.287, or 8972 cars above the preceding week and 39,324 ahead of a year ago. Loading of merchandise less-than-carload lots aggregated 168.750 cars, or 1522 above the week previous and 3642 ahead of the 1934 period. BANK DEPOSITS CLIMB BTime* Special EVANSVILLE. Ind., Oct. 12. Bank deposits here in September show’ed an increase of approximately $4,000,000, compared with the corresponding month last year, the Chamber of Commerce announced today. Deposits on the last day of (he month were 18.6 per cent higher, and debits were up 28.8 per cent.

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WARTIME BOND ISSUES GF U. S. ARE OFF BOOKS Retirement of Liberties Will Remove Last of Old Loans. By United Prexx WASHINGTON, Oct. 12.—The Federal government completed plans today for elimination of wartime bonds from its books with retirement next wrekfOf the last oH the Liberty and Victory Loan issues. The Treasury either has refunded into lower interest-bearing securities, or paid off in cash, all but

$250,000,000 to $350,000,000 of the wartime flotations. These will be paid off in cash Tuesday. Although this operation will end another phase of the wartime financing, it does not mean that the United States has paid off its war debts. Many of the Liberties were refunded into other se-

Morgcnthau

curities still outstanding and nearly three-quarter billion dollars are used annually for war veteran benefits. The long series of war debt, retirements under the Harding-Cool-idge-Hoover regimes carried the government’s debt to a post-war low on Dec. 31, 1931, of $16,026,087.087. The war peak was $26,596,701.648. It was explained today that the $14,744,042,741 increase from the figure of March 31. 1917—shortly before we entered the war—must be considered unpaid obligations incurred during the war. Meanwhile, the United States is “holding the bag” on nearly $11,000,000,000 of defaulted foreign debts owed it, although a large part of the Liberty Loans was contracted to obtain funds to lend to Europe. The Treasury, headed by Seers-, tary Henry Morgenthau Jr., today listed millions of investors among the original purchasers of its liberty and Victory Loan issues. Amounts Compared Treasury figures showed (he original Liberty and Victory Loan issues together with the number of individual subscribers as follows: „ I ' oan - Buyers. Amt. So'd. First 4.000 nno $ i.bro 455 5.30 Second 0.400.000 3.807.865 000 Third 13.302 325 4.175.650,050 Fourth 22 777 680 6.064 581 100 Victory 11.803.895 5.249,968.300 Totals 66.283.900 s2l 4.12 924,700 The interest rates on these huge bond isues ranged from 3ri- per cent on the First Liberties to 4 per cent on the Victory notes, the highest interest rate paid on a government security in recent times. Back in Civil War days the government on one occasion sold an issue bearing 7.3 per cent interest. Because of low money rates it successfully sold an issue recently bearing oniy 2?* per cent interest. FARM CREDIT UNITS PARE LOAN VOLUME Department of Agriculture Cut in Report. By United Prexx WASHINGTON. Oct. 12—Federal farm credit agencies made few new loans during the summer months, the Department of Agriculture reported today. Credit extended by Federal Land Banks amounted to $14,000,000 in July and $19,000,000 in August, compared with $65,000,000 and $60,000,000 for the same months in 1934. Land bank commissioner loans amounted to $11,000,000 for July and $13,000,000 for August, against $52.000.000 and $47,000,000 last year. Federal Intermediate Credit Bank loans were $30,000,000 for June and $28,000,000 for July, slightly below the 1934 figures of $35,000,000 and $31,000,000. New leans in June and July by regional agricultural credit corporations amounted to $11,000,000, against $15,000,000 in 1934. Production credit association loans for the same two months were $29,000,000 as compared with $24,000,000 a year ago.

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