The Philadelphia Inquirer from Philadelphia, Pennsylvania • Page 23

FINANCIAL1 AND BUSINESS SECTION FINANCIAL' AND BUSINESS SECTION PUBLIC LEDGER PHILADELPHIA, MONDAY MORNING, FEBRUARY 15, 1937 a 23 I HUE E. I CLARK CO. Explains Drop in Net Profits Reports Upturn in Sales Figures BRITISH PRICES DROP AS U. S. STOCKS RISE What Happens in England Is Important to 'Our Prospects Writer Points Out in Linking Market Movements FORECAST INDUSTR A NEW SPRING PEAK Additional Recovery Gains Based on Underlying Trend of Demand in Major Lines, Weekly Survey Points Out By BROAD AN WALL Registered V.

S. Patent Office in operations. That is the case to needs. "Other loans" (largely commercial loans) of reporting membe'r banks in 101 cities increased 26 pei cent, last year, to $4,290,000,000 while Industrial production Increased only 18 per cent. Although commercial loans were still only half the 1929 volume, compared with a level of 'n-dustrlal production only 15 per cent below 1929, the use of credit has begun to gain much more rapidly than I day.

Steel mills are averaging better than 80 per cent, of capacity and the prediction is freely made that actual capacity would be seen in the not distant future. The very threat of labor trouble has been a major fac tor in building up orders for steel. But the stock market can see no clouds In Its heaven. Any such factors as tightening money rates or extensive labor troubles are ignored for a time in the wave of enthusiasm such as exists today. This is a familiar incident in all periods of widespread optimism.

The activity which has been taking place in the stock market can only be explained by such enthusiasm, and while this same enthusiasm prevails fundamental influences temporarily are shunted aside. UPPER DARBY BOIS $450,000 Marlboro Coun ty, South Carolina, Issue Is Also Announced A banking group comprising Graham, Parsons Dougherty, Corkran is Bancamerica-Blalr Corporation and C. C. Collings Co. are today offering a new issue of $800,000 Upper Darby Township, School District 2 per cent.

bonds, dated March 1, 1937. The bonds mature $25,000 each year from 1938 to 1952, inclusive, and $30,000 each year from 1953 to 1965, inclusive, and $35,000 in 1966. They are being offered at prices to yield from 1.00 per cent, on maturities of 1938 to 2.45 per cent, on ma turities of 1948, and at 103 on maturities from 1949 to 1954, on maturities from 1955 to 1960 and 102 on maturities from 1961 to 1966. The bonds, interest on which is ex empt under present laws "from all Federal income taxes, in the opln ion of the bankers meet the present requirements as legal investments for savings banks and trust funds in Pennsylvania. Marlboro S.

C. Issue Offering is being made today of a new issue of $450,000 Marlboro County, South Carolina, 3M per cent, highway reimbursement bonds by R. S. Dickson fe John Nuveen St and Wells-Dickey Co. and Baker, Watts Co.

The bonds, which are dated January 1, 1937, are due January 1, 1946 to 1955, inclusive, and are priced to yield from 2.85 per cent, to 3.10 per according to maturity. They are issued under a reimbursement agreement between the county and the highway department of the State of South Carolina. Less Activity in Bond Market Both Corporate and Federal Issues Fall Off NEW YORK, Feb. 14 (A. Judging from last week's turnover in the bond market, investment circles were more concerned with new issues brought to market than with listed loans.

The trading week, shortened by observance of Lincoln's Birthday Fri day, saw activity fall to a low level. As a consequence, very little in the way of trend was established in the domestic corporate list. High grade obligations, both corporate and Federal, moved off a little, while foreign Issues advanced to new highs for the year. Public utility financing combined with a $70,000,000 Argentine offering accounted for most of the new Issues. Northern States Power Company of Minnesota with $75,000,000 of 3 l-2s and Dallas Power Light Co.

with $16,000,000 of 3 l-2s constituted the other major marketings. OFFER 10 BS $3.1 SHARE Reports Profit for 1936 of $9,038,788, Aga unst $11,223,578 -HnentaI Can report 1I charges, including $1,616 0r income taxes and surtax profits, equal to $3.17 on outstanding common stock, fl(lM- snared with net earnings or $11 23,578, or $4.21 a share In preceding r. I nurintr 1936 dollar volume or saies i company was greatest In Its his tory. o. C.

Huffman, president, In his re port, discloses that refunds to cus- rfiirinff fourth nuarter of vear Wiiw 1 tf der the Robinson-Patman Act wer6 roughly $2,500,000, accounting lor decrease in net profits. American Can reports for 1936 net inmme or $17,226,845. alter ail charges, equal to $5.80 a common romnared with $17,310,303. or (5.83 a common share, in previous vear. H.

A. Baker, president, sam 'M expenditures for new construc-lon last year amounted to Gross sales amounted to 702,113. Commonwealth Edison, of Chicago, snorts for 1938 consolidated net In come of $10,943,741, equal to $6.79 a hare on capital stock, against (55,588 or $6.51 a share, in 1935. Operating revenues increased 4.8 per cnt. to $82,980,994.

Standard Cap Seal reports for S36 consolidated net profit of i equal to $2.39 a common share, compared with $617,375 In previous Consolidated Gas, Electric Light Power, of Baltimore, reports for 1936 iet Income of $6,394,688, after all targes, equal, after preferred dividends, to $4.52 a common share, lainst $6,288,204, or $4.41 a common in preceding year. Columbia Gas Electric reports 'it 1936 consolidated net Income of Si3.223.242, equal, after preferred dividends, to 53 cents a share on ommon stock, against $11,944,326, or S3 cents a common share In 1935. Childs reports for 1936 net profit $291,138, equal, after annual divi- tnd requirements on 7 per cent. imulative preferred stock, on which spaid dividends at close of year taunted to $35 a share, or a total 11,306,235, to nine cents a share 3 common stock, against net profit $117,063 in preceding year. 5 42 P.

C. 'ollar Value for 1936 Set at $27,284,158,816, SEC Reveals WASHINGTON, Feb. 14 (A. he Securities Commission said to- ay a 42.7 per cent, increase in the ollar value af transactions on all 'Mistered stock exchanges In 1936 er the previous year had been re- rted to it. The total of transactions was S4.158.816.

compared with, JI.M7 in 1935. All stock transactions amounted $23,622,562,644, an Increase of 56.6 rcent. over the total of in 1935, while bond transactions Wived $3,661,335,035, a decline of 1 per cent, over the total of o88 reported for 1935. stock shares traded during 1936 TOued 960,647,539 shares, or 45.1 nt. above the 1935 total of shares.

The oar value of "ios turned over in the year 'mounted to $4,652,446,136, a 1.5 per decline from 1935. The twn Npur Vnrlr TTvpViancroa nrp laminated, accounting for 95.6 per ''oi the total value of sales on all "SlBtered Pxrhflntreii rtnrinff 193fl. Jhe New York Stock Exchange and new York Curb Exehanee re 95 per cent, of all stock sales, per cent, of all bond sales. The value of r.rarfincr nn nil pvpmnt "changes in 1936 declined 2.2 per nf uum 1935 to a total or $19, I BUSINESS MAN'S PHILOSOPHY By WILLIAM FEATHER ((SKIMPING" Is the name given petty savings in the man-ufacture of goods. HGW Inner vnAf tn shirts.

Dslnmas nr trnnsers he- bmtons let go? Experience tnt if the buttons are proper- wim thread of good Sent117 WU1 l8St l0ng 8S thC vJhe mauacturer, the best a and workmanship cannot serious difference in the cost Sav. thtag- To the wearer, they whale of a difference. wny skimp? Makers of labeled An nnn. -marked goods are safer to buv for wh'eh nobody as- any responsibiUty. Is a serious drain on the oks if nPurse- chairs- and mil apart because a manufac- m.

ed iWerlr glue. The maker What uaci lusil, uuilaia. ON STOCK I STOCK III OVER CTIvE I fill FIELD 100 YEARS Founded as Private Bank ni i i i in rniiadelphia February 15, 1837 on E. W. Clark fc one of the old est investment banking and broker.

age houses in the country, today will mark the 100th anniversary of Its establishment. Founded as a private bank in Philadelphia on February 13, 1837, in the period which witnes- sed the beginning of the develop ment or these forerunners of present day underwriting houses to a position of prime Importance in the fi nancial scheme of a fast growing Nation, the firm has had an active, and in many Instances a leading part, in succeeding phases of the country national and economic progress. With a colorful background of ac complishments in the formative periods of the country's finances, ranging from trading in gold and foreign coin to flotation of early war loans, the firm today, conforming to changed circumstances and conditions, covers the field of corporation and municipal financing, centring interests in its general investment, underwriting and brokerage activities. It has been a member of the Philadelphia Stock Exchange since 1843, of the New York Stock Exchange since 1886, and holds associate membership on the New York Curb Exchange. A distinctive feature of the history of the firm, to be found in the older countries of Europe but still rare here, is the fact that throughout the 100 years of Its existence it has been under the direction of descendants of the founder, Enoch White Clark.

Of the present day eight partners, three are grandsons and four are great-grandsons of the founder. Dealt in Bank Notes Among the significant activities of the firm and its partners, which form milestones in the 100 years, have been: Financing of the Mexican War. Financing and development of American railroads. Origination of the car trust for financing purchase of railroad equipment. Pioneering in the financing and development of American utility companies.

Formation of the first national bank chartered under the National Banking act of 1863. Formation of what is now one of Philadelphia's largest and best known trust companies. Founded in the depression era which marked the ending of the Administration of President Andrew Jackson and the beginning of the Van Buren Administration, the firm's initial activities consisted largely of dealings in bank notes, foreign coins and domestic exchange. Through the sale of United States Treasury notes and Government stock, Enoch Whit Clark provided the Government with funds to finance the Mextcan War in 1846, removing finances as a source of governmental concern during that con-filet and adding materially to the prestige of Philadelphia as the country's financial centre of that period. E.

W. Clark Co. were interested In a number of the early railway systems of the United States such as the Pennsylvania, Northern Central, Philadelphia and Erie. Pitttsburgh, Fort Wayne and Chicago, St. Louis Ss Duluth, Western New York and Pennsylvania, Ohio River Railroad, Fort Wayne and Rio Grande, Phila delphia St Reading, 8henandoah Val ley Railroad, and Norfolk Western Railroad.

The firm also participated in the opening of new coal lands in the Pocahontas fields in Vlrganla and west Virginia. Partners in Firm During the forty-eight years fol lowing the death of Enoch White Clark in 1856 and the retirement of Edward Dodge, co-founder, or until 1904, Enoch White Clark's oldest son. Edward White Clark, was head of the firm with the exception of the five years from 1877 to 1882 during which time he withdrew owing to increas ing outside Interests and responsi bilities. In this period his brother, Clarence H. Clark, was head of the firm.

Since 1907 Edward Walter Clark has been senior partner. Other present partners are: Clarence M. Clark, Herbert L. Clark, Edward Winslow Clark, 8ydncy P. Clark, C.

Sewall Clark. Clarence H. Clark and William H. P. Townscnd.

From the time of its founding to 1928 the firm occupied quarters In the old downtown financial district close to the site of its original office on 3rd street near Chestnut. In that year the firm erected and occupied its present quarters at 16th St Locust streets. Market Transactions New York Stock Exchange sales for the week ended Feb. 13 totaled 12,787,420 shares, com pared with 14,400,620 shares the week before, and 12,714,280 a year ago. Sales on the Curb Exchange totaled 3,686,363 shares, compared with 4.283,540 shares the previous week, and 4.329,000 a year ago.

Bond tabs on the Stock Exchange aggregated $59,459,000 the past week, against the week before, and a year ago. Bond sales on the Curb Exchange amounted to $9,947,000, compared with $12,698,000 the preceding week, and $21,300,000 a year ago. Despite uncertainties, business Is showing no signs of any Important near term recession, and based on the underlying trend of demand in the major Industrial lines, it is entirely possible that, barring some unforeseen adverse development, in dustrial activity will reach a new recovery high this spring. Business men are faced with a number of problems, however, tha outcome of which, although not subject to statistical measurement, will have an important bearing on social and business conditions in this country. It is extremely difficult to deter mine whether the President's sur prise message demanding a change in the Judiciary will materially affect business confidence.

There appears to be no doubt that the move was made to facilitate the Administration's general program of social and business changes. Whether increasing the member ship of the Supreme Court would open the way for a revival of such unpopular legislation as the NIRA Is impossible to answer at this time. Needless to say, the re-enactment of the NIRA in its original form would be a severe blow to business morale. It was the removal of the shackles of this legislation in the summer of 1935 that has enabled Industry to make uninterrupted progress for the past 20 months. Another major problem facing business Is the future of the sit-down strike.

At no other time in the history of the country has so effective a weapon been placed in the hands of labor, and if such strikes are countenanced, despite their illegality, no Industry will be free from interruptions. Steel Orders Continue Aside from the Imponderables, the business picture is bright. Operations in the steel industry, which normally accurately reflect the tempo of general business, are at close to the highest levels in over seven years, despite curtailed orders from General Motors. Orders for steel are continuing at a highly satisfactory rate and demand from the automobile Industry should gather momentum during the next several months. Manufacturing will commence In another month or so on many railroad cars and other rolling stock placed under con' tract late in 1936.

Normal spring de mand for many other types of steel products is expected to generate at a fast pace within the next month or two. In short, the steel industry is like ly to operate at, or close to, present high levels for at least several months. With this prospect in view, it is difficult to picture any severe recession in industrial activity as a whole. From an earnings standpoint, a sustained level of Industrial produc tion at reasonably satisfactory levels has important implications. Earnings of steel companies, for example, are usually far more satisfactory when operations are maintained without Important fluctuations.

If rolling mills can be operated without fre quent roll changes, costly idle time and numerous other delays and interruptions, a condition exists which Is highly profitable for the steeUom-panies. Distribution of Bank Assets This is exactly the condition the steel industry and many other lines are now enjoying and promise to experience for some months to come. Because of the economics effected by sustained operations, many indus trial organizations will be able to ab sorb rising raw material, labor and other costs, and show a considerable expansion in profits. Prior to the depression, about half of earnings assets of commercial banks were normally in commercial loans, with the other half about equally divided between capital loans and Investments. In the past several years, however, Investments have increased to about 60 per cent, of earn ings assets and commercial loans have dropped to about 20 per cent.

Loans will probably Increase as business recovery advances, although the banks may never reattain the proportion of 50 per cent, of asset In commercial loans. A large but declining proportion will probably continue to be In Investments foi the next few years. The sharp expansion in commercial loans In 1936 represented a definite trend toward larger credit 1935 $3.63 For Ltading Gtiti Lot $11.92 San Francisco 11.49 Boston 9.82 8.64 Baltimore 7.9S Detroit 7.46 St.Loui 6.93 Cleveland M7 Pittsburgh 5.60 New York 5.44 Buffalo 5.28 Milwaukee 5-27 Chicaqo 4.68 NEW YORK, Feb. who refuse to believe that a change is taking place in our money market might take a look at what is happening in England. Our bull market has really followed an English bull market.

Therefore what happens in the English market is very important to our prospects. It may be recalled that a severe break in the British market In 1929 immediately led to the collapse of our own pyramid that year. London last week saw a rather sharp drop take place In the price of British Government bonds. Most of the British highest grade bonds have been slipping in value for a little while. So have our own best grade bonds.

In both markets, In London and here, the sell-off of bond prices has been due directly to a recent Increase in the cost of borrowing money. While our stocks have been advancing rapidly to new high levels for the entire recovery, in England stock prices have been declining. In fact, the average price of English stocks is now at the lowest level In months. The market's refusal on Saturday to "celebrate" the end of the General Motors strike is not hard to under stand. Neither the corporation nor the union won a decisive victory.

But the union has been recognized by the corporation and thus the union won a major victory of its alms. Tne corporation itself emphasized the fact that the strike had this as its basic objective. It Is only natural, however, that the union in the negotiations now to begin will insist upon greater wages. In other words, the stock market must take into consideration a major increase in operating costs, not only for General Motors, but for the entire industry. Chrysler voluntarily raising wages of its workers, recognized this fact and agreed to give up a greater part of its income to Its labor.

Even the partial success of the C. I. O. In the General Motors fight will undoubtedly encourage the union to broaden its attack. Months back the.C.

I. O. notified the entire country that the automobile strike was but a spoke In the union's com- plete program. C. I.

O. leaders have shouted from the housetops that they were organ izing their lines to attack the steel Industry. It so happens that tne union may attempt to throw a wrench into the steel trade just when it is at the very top of a six or seven-year peak Gains Recorded in Curb Market Improved Business Condi tions Are Aid to Advance NEW YORK, Feb. 14 (A. Im proved industrial and business condi tions, topped by settlement of the General Motors strike, formed a bullish foundation on which curb stocks built gains last week, A higher steel operating rate and more than seasonal sain In car- loadings, estimates of which were cir culated early in the week, and increased earnings reported by numerous companies were other factors making up for tne uptrend.

Wednesday provided tne most ag-crosslve advance, in which sneclalties and utilities were ring leaders. Elec tric Power Light Preferred rammnnwealth Edison. Jacobs National Oil Products and New Haven Clock moved up sharply. AIR-CONDITIONED CARS tv. vollrnnHc inH th Pullman Co.

on January 1 had 80l8 air-conditioned passenger cars in operation, J. J. txoiioir nroslripnfc of the Association of American Railroads, announced yesterday. Since April 1, 1936, more than 1300 passenger cars have been equipped with air-conditioning devices. Of the total number of passenger cars which have been air-condition- ihi rallrnaHs nn Janusrv 1 had 3926, which included 2293 coaches, 885 dining cars ana 748 otner types oi passenger equipment.

The Pullman Co. on January 1 had 4152 air-conditioned passenger cars in service, which included sleeping cars, lounge cars and other passenger equipment. TRADERST0 MEET The Foreign Traders Association of Philadelphia will hold its monthly dinner meeting Wednesday night at the Penn A. C. under the chairmanship of John B.

Hay, the president. The meeting will be devoted exclusively to a round-table discussion in order to give members the opportunity of exchanging views and ideas on topics of current Interest. Bs-cause of Its immediate concern to exporting and importing Interests, the Top Wharfage question will be one of the highlights of the meeting. Together with that there will be a review of the latest Japanese restricting as well as a discussion of export drafts and how to use them to best advantage. TO VOTE ON MERGER The special stockholders meeting cf McKeesport Tin Plate Co.

to vote on approval of the merger with National Can Co. will be held on March 10 and not on March 11. as previous ly announced. business volume. The need for loans to permit carrying on a given volume of busi ness at a given level of prices has been permanently reduced by the greater efficiency of manufactuiing methods and speedier transportation, reducing the time between purchase of raw materials and delivery of fin ished goods and thus reducing the size of Inventories.

During the next several years, commercial loans should expand at a more rapid rate than industrial pro duction. For a temporary period, however, the rate of increase will be tempered by the strong cash position of large corporations and the ease with which funds can be obtained through sale of securities. For the greater part of this coun try's history, the South was predominantly agricultural, supplying the bulk of the Nation's needs of cot ton, tobacco, cottonseed oil, rice and peanuts, as well as a sizeable proportion of fruits and vegetables. Its strictly industrial pursuits were few and were confined largely to the processing of local agricultural products, Advantages Eliminated In recent years, however, manufacturing in the South has been stead ily growing In Importance, and while there are numerous reasons for this development, the shift of industry southward can be divided into two major phases. Initially, manufacturers moved into the region to take advantage of Its large supply of low-cost labor, its abundance of cheap power, its lower taxes, and its raw materials.

Aa in all such movements, how ever, natural forces soon began to eliminate many of the advantages Because of the increasing call for lactory labor, wage differentials be tween the North and the South began to narrow. Hie tendencies of individual industries to concentrate in certain centres provided a fertile field for labor organizers, as seen in the strikes in the textile and rayon plant which developed a few years ago. Another example is the expe rlenoe in the coal fields of West Virginia and Kentucky, where the or ganization of miners and the result ing higher wage costs greatly lessen ed former competitive advantages. Still another factor is tha in cllnation of northern Industrial com munities to grant tax concessions to companies threatening to shift to the South. This threat has been a powerful weapon in th hands of concerns located in centres where the tendency has been to saddle in creased costs of government almost entirely upon local manufacturers.

Numerous companies moving to the South have found that the higher cost of shipping the finished product to tne large markets has tended to offset the nearness to raw material sources. Thus, the South Is no longer in a position to extend earlier advantages to manufacturers, but nevertheless. it continues to grow in industrial im portance. This is because the initial shift of Industry southward bolstcrea incomes to such an extent that the region has become Important as a consuming market for the products of industry. Before the industrial development, the needs of a simpler economy were easily satisfied by its own markets.

Entered Second Phase In Other words lnriustrv In the South has entered a second nh.j in which factories and other plants ar? oeing established not solely to tako advantage of lower producing costs, but more especially to serve the region's requirements. Still another factor is that the uncovering of addi tional sources or raw materials in the South. esDcciallv in the Western portion, has been accompanied by tne construction of planto to process these commodities. Considering that the ceoiranh- Ical shift of industry is a slow process, the industrial expansion in th Houtn since 1921 has been ranirf In that year, the Southern States accounted for 13 per cent, of the total value of manufactured Droduct the Nation, but by 1933 this had risen to 17 per cent. There is no other section of the country which approached this rate of Increase.

As measured bv the exnanslon in the number of wage-earners, the gain In the South is equally Impressive, In 1921, factory workers were 16 rwr cent, of the country's total, while in iajj tne proportion was 20 per cent. It is also significant that, despite the severely depressed conditions in 1933, the number of factory wage-earners in the South Atlantic District totaled 770,805, compared with in 1921, an increase of 19 per cent. For the country as a whole, the number of factory workers in 1933 was 13 per cent, smaller than in 1921. The value of manufactured products produced in the South Is far greater than the value of agricultural products. It Is estimated tnat receipts from farm marketings In the South Atlantic and South Cen'ral districts last year were about Even in the depression year 1933, the value of manufactured products was $5,300,000,000.

(Copyright 19.J7J GETS NEW '0ST Eastman, Dillon Si Co. announce the appointment of Henry R. Hal-lowell as assistant manager of their Investment department. Mr. Hal-lowell has been encaged in the investment business here for a number of years.

W. S. SHIPLEY President of York Ice Machinery York, who states corporation's sales totaled for first four months of current fiscal year, an increase of 93 per cent, over corresponding period of last year. OF S. I IN DE Securities of Brazil, Chile, Colombia and Peru Show Activity By FRANK J.

WEBB From Th Inquirer Bureau. NEW YORK. Feb. buying of the defaulted bonds of some of the South American countries and political sub-divisions has become a pronounced feature of the Investment situation here. The recent purchasers of these securities have included some of the largest and most conservative of the Wall Street investment banking houses which have been impressed by economic and financial betterment In many sections of the South American continent and expectation of partial or complete settlement of some of the debt problems that have presented difficulties ever since the beginning of the depression, Dally Stock Exchange records have for some time reflected Latin-Amer ican bond transactions far in ex cess of the usual volume and In some instances the advances in prices have been substantial.

The principal activity has been in the securities of Brazil, Chile, Colombia and Peru, with incidental purchases here and there of Issues of other nations in South America. In general, the obligations of the four countries mentioned are now selling at double or more the lowest prices they reached in the last year. The same is true of a number of issues of States, municipalities and Government agencies in the same group. Peruvian Issues Much Higher Some of the broadest of the buying of last week took place in the issues of Peru, whose 7 per cent. bonds are now selling around 27, as against a low point of 13 last year, and whose two Issues of 6s traded in here are quoted at 25, an advance of 15 points over the low point of last year.

Chile has six Issues of 6 per cent, bonds traded in here which are selling on an average of about 21 as against low points of 14, and that country's mortgage hank obligations have risen from low points of 12 to the neighborhood of 20. The current price of about 52 on Brazilian 8 per cent, bonds compares with a low of 28 last year, and that country has two 6', a per cent, issues which have risen to around 47 from low points of 22. Prices have been doubled in the last year on the obligations here of Rio de Janiero, Sao Paulo and Rio Grande do Sul. Two 6 per cent, issues of Colombia have risen to their present level of 37 from a low of 19. Uruguay bonds selling within a point or two of 70 were below 40 at one time last year.

Negotiations among bankers, representatives of American bondholders and South American Governments are understood In several instances to be moving forward satis- Continued on Page 25, Column 7 Family Expenditures Secondhand Star in Avtrag. Unitad Statti DEFAULTED 0 I O. C. HUFFMAN President of Continental Can who states decrease in 1936 proits was due to refunds to customers as result of Robinson-Patman act SMS ITOSE Forbes Declares Demand Is Speculative Rather Than Investment By B. C.

FORBES The financial community, al though regarding the terms of the automotive strike settlement as reasonably satisfactory, isn't at all sure that further labor trouble will not break out. Allowing sit-down strikers to oc cupy plants In defiance of the law is viewed as a precedent bristling with perilous possibilities. Elation over the resumption of operations by General Motors consequently Is restrained. Nor has President Roosevelt's ag gressiveness in striving to force through Congress his Supreme Court plan tended to strengthen confidence among the highest circles. The security markets have moved indecisively, although the week end ed with moderate average gains.

SEC statistics reveal that buying of "odd" lots of stock, meaning blocks of less than 100 shares, is broadening. This represents speculative rath er than Investment demand. It is, of course, a familiar, a characteristic, forerunner of speculative booms. One favorable aspect of this pres ent movement, in contrast with the 1928-1929 public participation in stock market activity, is that most of the current buying is for cash, not on thin margins. Legislation now prescribes far larger margins than ruled during the last speculative excesses.

Therefore, even should the public "take the bit in its teeth," the pos sibilities of disaster paralleling that of 1929 would not be present. Advices received by this writer re veal the existence of Intense speculation in London, not so much in securities as in commodities, notably rubber, copper and other materials essential to war. Manifestly, the European situation is more critical today than at any time since war alarms began to be raised. It Is generally taken for granted that a major upneaval will occur; the only question is whether Britain can contrive to stave it off until she has had time to put her own military house in order. Her armament program, now being fev erishly rushed, Is colossal.

That an unhealthy share of industrial activity in Europe is attributable to war preparations has become starkly clear. In our country trade and Industry continue to expand substantially. Reparation of flood damage is bound to act as a temporary stimulus. The caution exercised in the highest quarters is not manifest among ordinary consumers. The steel industry Is experiencing a veritable boom.

Whereas the common shares of the U. S. Steel Corporation dropped to $21 during the depression, last week they rebounded well above par, finishing the week at $108. This industry is rushing in plant construction on a scale never before known. The motor industry's prosperity was emphasized last week by record- breaking earnings reported by the Chrysler Corporation.

All indications are that automobile and truck production this year will exceed last year's. Quotations for export copper last week again advanced. Preparations for war unquestionaby are a factor. Despite existing clouds, this writ- er is honeful that sanity will prevail and that business and employment will move lurtner aneaa. (Copyright 1937) SUGAR USE GAINS Consumption of sugar in the United Kingdom during 1936 totaled long tens, raw sugar value, as compared with 2.228,51 tons in ioo an increase of 83,651 tons, or approxi-motoiu a a rr according to ad vices received by Larr.oorn from London.

Of the 1936 consumption, approximately 21.8 per were homegrown sugars, while imported sugars aggregated 78.2 per cent. Stocks of sugar in the United Kingdom on January 1, 1937, totaled long tons, raw value, as contrasted with 454,000 tons at the beginning of 1935, an increase of 73,000 tons, or 16 per cent. LOIS lie Average Amount Spent at Secondhand Stores by the Families of Each State k- A -A ft Ptr and Ovtr HI HOO-H" Btlow $2.00 I i 99 them xaJast a year? Who makes nd where are they sold? (Copyrieht 1937).