La Grande evening observer. (La Grande, Or.) 1904-1959, June 22, 1932, Confidence Edition, Image 13

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La Grande evening observer., June 22, 1932, Confidence Edition, Page 13, Image 13

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Newspaper Page TextWednesday, June 22, 1932 LA GRANDE EVENING OBSERVER, LA GRANDE, ORE. Page Five Vacation Period Hints Given To Owners of Cars The vncatlon period should bo de void of as much service to one pelf und one's things as Is possible. This particularly refers to the vaca tionist who uses his automobile as n means of transportation and, there- fore, depends on his car ns the big gest contributor to his holiday pleas ure. The condition of his car, there fore will vitally affect the extent of the pleasure and rest. It 1b estim ated that approximately forty million people In this country will use be tween nine and ten million motor cars this summer In seeking a brief respite from the cares of business. A complete Inspection of the car should bo made in advance of the trip. All reciprocating pnrts should be thoroughly lubricated, particularly at those places provided by the car maker. Inspection and tightening. If necessary, of body bolts, motor bolts, spring shackles, etc., should be done. The motor oil should be in spected and changed, if necessary. Tho cooling system should be gone over, to be sure that connecting hoses and clamps are in good condition to prevent leaks. Generator should be adjusted for proper charging rate, battory tested for proper specific gravity and filling. Lights should be focused, and tires Inflated in keep ing with recommendations of the manufacturer. (Under Inflated tires can cause no end of annoyance and expense. ) Front wheels should be checked for proper toe-in, to guard against unnecessary wear and motor should be tuned up. t Have 'distributor points checked for proper contact. The braking system should be examined to be euro the system is effective and. if necessary, shoud bo relincd before starting out on the trip. The fan belt occasionally has to be replaced and it's condition should be checked beforo skirting on ti trip to avoid trouble on the road. "Tiro cnanging tools, with the other pieces of equipment which are usually a part' of the car, should be complete. If the trip Is an exten sive one. It is a wise provision to include an extra tube. Skid chains are a most helpful factor, if the trip calls for travel over less-used, muddy sections of the country. If the route of tho vacationist takes him through the desert or Into the mountains, It Is well to provide containers filled with water and oil. Plenty of Motion We have about 370 muscles to control our vnrlous movements, while a caterpillar has more than 4,KK). Is It any womlcr they eun wlirglt ami If trained what danc ers they would make! Corn Borer's "Homci" The Kuropean corn borer is no too particular about having a. corn-Held- for heudqunrters;-li can live coarso steins of more tlmn 200 vti- rictles of plants. Gold Coast Government The Gold coast of West Africa Is a Hrltlsh colony, divided Into the Gold Coast colony proper and the two dependencies, Astnmtl and the northern territories. The governor hns his seat of government at Accra. Historical Lapie? Although history states tlint the early Kgypttnns probably came from Mesopotamia there nre no records to show that gardens were devel oped in that country prior to those in Kgypt. ' Gave Name to Bandit The Mongol conqueror Genghis Khan, who swept Asia In the Thir teenth century, had red hair, and even Unlay the Chinese name for bandit Is "red beard." Wisdom of Little Value "Wise ancestors have spoken In vain," said HI Ho. the sage of China town, "since only the wise, who are always but few. can recognize and use wisdom." Washington Star. Backed by Government Postal savings, deposits are ac knowledged by postal savings cer tificates. These are made out in the name of the depositor, serve as receipts, are valid until paid, and nre backed by all the strength of the government. The LAVENDAR LUNCH Depot St. CHICKEN DINNER Sunday -35c Includes Potatoes, Dressing, Hread, Vegetable, Drink, Salad or Pie ICE CREAM SPECIAL SATURDAY & SUNDAY STRAWBERRY, CHOCOLATE OR VANILLA ICE CREAM 25c per Quart Thepe fine new buildings stand ,, Hints On Care Of Automobiles The new tourist from the flatlands Blthough current money rates make hns a unique thrill when ho strikes tho yield of such bonds attractive and the mountains. . j the banks on the whole have been Tho roads are Bteep, long and wind- i buyers Instead of sellers, the "in Ing. They are narrow and trencher- . vestments other than governments" cub There's a cliff on one side a of the weekly reporting member cus incrcs a cmx on one siae. a banks havlng increa8ed 16iooo.ooo in declivity on the other and nothing the flnt three weeks of the month. aneatl' 1 Among the groups rail bonds have Ifs an experience for only the best been weakest and the high grade of drivers to encounter with equani-. municipals and utilities strongest, mity. The new driver must bo ever Fo' tne virtual collapse In prices cautious and well prepared for any emergency. I .If vour trio . takes vou thrauch mountainous territory, seo before - hand that tho motor is In perfect nHiii.,, oh .i,t h. lightly Brakes, however, should not be re-' lied on for mountain driving. Signs at the tops of long, steep hills, today warn motorists, to go into low. They should be respected, or tho motorist may find himself smelling rubber, then ripping out the -ako linings and finally flying into space and destruction. Low gear makes the compression n, tv, v,,r ,,,. I of tho motor brake the car suffl- cicntly for long steep down-grades. the ignition. It's dangerous to coast, the throttle should be almost shut, Never coast, and never turn off tho gnitlon. It's dangerous to coaBt, except where you know your ground and the hill is short and easy. And it's costly to turn off the Ignition, because fuel is being pumped into the cylinders anyway and isn't being burned. The result Is that It works into the lubricating oil In the crank- case, .scoring the . cylinders as ..it passes 'the pistons.' '" It's easier to go Up a mountain road than down. You go up usu ally in low, and have perfect con trol of your car. Going down, how ever, even If in low. the least mis take may cause disaster. Yet the up-going driver has the right of way on such,. roads. The reason is that it is ho. who must keep his foot constantly on the ac ileiat(:. Ho can't stop for the brakes alone won't hold on many a climb. '!( '. Therefore, the down-going driver must stop for him. He must pull over into a nook in the cliff, if the road Is wide enough . only for one car, and permit the up-going driver to take the outside whether to the right or loft. That's the courtesy for mountain driving.-'': y Worth Remembering A man never by his authority at tains to virtue and excellence, but by reason of his virtue and excel lence be attains to authority and power. -King Atfred. Higher Education "Kissing me spreads germs," Is In scribed on a patented "health" bib for babies. We understand the ba bies take oft the bibs when they en ter college. Precursor of Death By Irish and Scotch folk lore, a banshee Is a fairy visitant, often ln the shape of nn old woman, whose wailing under the window of a house foretells death. One of La Grande's Newer Business Blocks on the north side of Washin gton avenue near Fourth street. left are now occupied by the Montgomery Ward store. FINANCIAL SURVEY BY NATIONAL CITY BANK, NEW YORK (Continued from Page Four) of tho second and third grade Issues, tne explanation is tne persistent liquidation, by "holders -who havo lost confidence in the ability of the 1 obligator corporations to maintain payments, or who have become 7r n Th. irl otner PePle were selling. There are many issues, amply protected by un derlying liens on valuable property, which are selling below any price to which they would likely bo scaled down ln receivership. In the pres- ". "' gj "8 ? ''tS than the panicky fear that prices may go lower. .New bond issues have continued negligible in amount. Only one cor porate Issue, of 91.000,000 public utility Donas, was oiicrea last mpntn through tho 27th, while state and m11,'?intll .7nnnnonn municipal Issues totaled 970.000,000. U. S. Government Financing New offerings of short term se curities by the treasury have con tinued heavy but have been oversub scribed and sold at artificially low rates because of tho surplus of bank ing funds in New York and the othT er money centers brought about by the aggressive open market policy of the federal reserve banks. Tim avlramn rilnngrltu hahirnnn yields of 6 per cent and upwards for corporation bonds of good standing and the sale of treasury bills , at the low record of 0.20 per cent is a strik ing characteristic of the times, il lustrating the lack of confidence in the bond market on the ono hand, and on the other the abundance of funds available for risk less short term employment, regardless of the Interest rate. Although part of the treasury of ferings are for the refunding of ma turing obligations and therefore rep resent no demand for new capital, the larger portion is not thus offset, as may be seen from tho following summary of security offerings for the first five months or 1932 and of fixed maturities during the same pe- rlod, the balance representing new capital: U. 8. Treasury offerings and Maturities (In millions of dollars) Month Total Maturing 1932 Offerings Iskiich January 9 101 $ 103 February 587 271 Mhrch 1227 826 April) 203 . 101 MJiy 695 215 Total $2813 $1516 It will be seen that tho borrowings by tho government since the begin ning of 1932, represented by thirteen issues -of treasury bills, six of treas ury certificates and ono of notes, making twenty Ibsucs totaling $2,813, 000,000, the sum of $1,516,000,000 was applied to the refunding of matur ing Issues while $1,297,000,000, or nearly one-half, constituted an in crease ln Indebtedness. This in crease nearly offsets the drop in oth er public offerings from $1,071,000,000 ln 1931 to $561,000,000 this year. It is an Interesting speculation, though an idle one, what the ef fect upon business would have been If these funds had remained avail able for Industry and if confidence had been upheld by a balanced bud get. Surely .the situation today would be a very different one, and HEADQUARTERS GENERAL ELECTRIC HOME APPLIANCES GAS STOVES LEONARD ELECTRIC REFRIGERATORS WAXGL0-ETTE PLUMBING FRED 1105-1107 WASHINGTON AVE. Phone Montgomery Ward far less troublesome. World Trade lit the Depression ' Current figures of the foreign trade of the principal countries show In impressive manner the severity of the decllno In world trade that has oc curred since 1929, and the signifi cant changes in the trade positions of different countries that have been caused by shifts In capital move ments, currency depreciation, tariffs and other obstructions, and similar influences characteristic of the pres ent disordered state of affairs. Tho accompanying table gives the com-, blned trade of 23 countries for the nrsc quarter or in is year (lor, iour in restricting imports, since import months where available) with com- ora can obtain means of payment only parlsons going back to 1929, and also from the government or central bank. lor tno past three calendar years. e'e e' J? "J8 "J0, . . L . , in their current trade Is only 40 per cent or tno iyyy ngure, and the low- cst ln 20 yenrs or " Foreign Trade or 23 Countries (In millions of dollars) First Quarter Kx ports lmimrts 1932 , 3135 3642 1931 4682 5364 1930 6671 i 7558 1929 7709 8588 Pour months for 8 countries. Calendar Year (26 countries) 1931 14,007 .16,633 1930 ... 20,845 23,045 1929 26,603 28,856 The decline in trade has been a cumulative one, operating ln the manner of a vicious circle, and no ! country is exempt. Difficulties were J experienced earliest and most acute ly by the raw material producing countries, notably ln South America and Australia. Their exports wero reduced, loans to them ceased, cor respondingly reducing the amount of foreign exchange available to them for purchasing and for making pay ments abroad on their indebtedness. There followed ln sequence exports qf gold, sharp dccllneB ln the ex change value of currencies, and in some cases default on their interna tional obligations. For these countries there has been but ono way out. Whatever tho de cline in tho valuo of their exports, they have had to reduce their im ports more, in the effort to bring their international payments Into balance. Since their imports are tho exports of other countries, the vicious circle was thus set going. Effects of "Confidence Crisis" In the early part of tho depres sion Inter-European trade was af fected less than any other, but tho worst blow to world trade was to come from Europe. This was the "confidence crisis," which originated ln Central Europe ono year ago. The sudden flight of short term capital, when alarm as to Its safety spread over the world beginning with tho Credit Anstalt difficulties, required overnight payments for beyond the capacity of normal trade balances to make, set in motion the events .which have done tho most to reduce trade to the present chaotic condition. Tho gold and foreign exchange avail ablo for making the payments wos,hl h lmortB nre necessary to give quickly reduced to the minimum Gcrmftn the materials to manufac needed as currency reserve, and turo forexporti nnU nor offorts mU thereafter tho necessary exchange ,.rri ' mt .i.,.-.. could bo obtained only out of an export trado balance. Hence the forced curtailment of Imports and effort to mnintaln exports at all costs. In part tho process has been an automatic one, since tho loss of bank reserves exerted deflationary ef fects on commodity prices and val ues of all kinds, making the country a cheaper market to buy in but a poorer on to sell to. Tho process has been hastened by governmental policies limiting Imports or giving Inducement to export. This was the sequence of events in Germany and tho other Central European countries. Finally Great Britain was involved, the depreciation of sterling affording a temporary stimulus to exports and an obstacle to Imports, to which tho protective tariff policy Is added. Accompanying all these develop ments has been a mounting tide of FOR and PLATES FLOOR WAXER AND HEATING SPAETH The quarters at the extreme trade restrictions. First against pres sure to sell German goods and then against British goods drastic tariff measures were Instituted. Various countries have established quota sys tems, limiting Imports by volume or value to specified quantities from specified countries. The license sys- tom is much the same in effect, be ing a substitute for fixed quotas. Embargoes are not unknown, Con trol of foreign exchange 1b a transi tional measure adopted of necessity by innny countries to prevent flight of capital and to preserve the value of thoir currency, and acts effectively Chances In Trade liahuices Tho following tablo brings out tho untwius hi uiu uimw uuiuiiuus oi tno nations, tho causes of which havo boon given ln the foregoing discus sion. The seventeen debtor countries ln tho table converted an excess of imports of $117,000,000 ln 1030 into an export excess of $765,000,000 ln 1031, and thus far this year havo had an export balance of 9148.000.000 compared with $6TjOCK,0OO ir. the same period ast year. Excess of Exports () or Imports ( ) (In millions of dollars) Creditor Countries Full Year 11)20 lf30 1031 United States.... 842 782 334 Un. Kingdom .... 1879 1888 1828 France 322 373 401 Netherlands Switzerland Belgium ... Sweden Denmark . p.. . ..300 281 233 .j 116 lfil 174 ,. 102 120 16 .. 82880 22 16 33 Total ,..1897 2083 2401 Debtor Countries (Industrial St Semi-Industrial) Germany . 174 223 591 japan Italy Czechoslovakia Austria , Poland Canada ; Norway Total 30 38 42 ; .. 339 276 83 16 63 41 .. 162 120 120 .. 34 19 47 .. 117 122 27 .. 8G 102 99 . 016 362 308 120 Debtor Countries (Primary Producers) .. 88 103 77 ... 40 69 . 101 .. 82 8 27 ... loo 101 165 .. 204 264 109 .. 150 168 90 ... 00 91 87 100 41 120 4 16 6 . 481 246 467 Brazil Chile China British India D. an Afrif-n. " " Au'strnIlft Hungary Total f Includes gold. Germany converted an inport bal anco ln 1929 Into an export balance of $501,000,000 In 1031 not includ ing $100,000,000 reparations paid in kind, and for four months took rank over the United States as tho lead ing exporter in tho world. Tho gain was too great to last, since relatively I petltlon from Qrent Brltot ii, and have i t nvr,rr.nrn tj,-itf innrnauna nnri had to overcome tariff Increases and other obstructions placed tn her way. Therefore her export balance during tho first four months of this year was less than ono year ago. Other countries which havo con verted import balances into export surpluses aro Argentina and Australia, wlille Import balances have been nearly wiped out or greatly reduced by Canada, Italy and Belgium Particular Interest attnclicn to tho figures for Orcnt Britain. Her 1m- o Av-TT-wrrn frQUALITY - - SERVICE ARTISTIC ' wARRAN GEMENTSS For Every Occasion FLOWERS TELEGRAPHED TO ALL PARTS OF THE WORLD THROUGH OUR F. T. D. SERVICE Phone Main 11 port merchandise balance beforo the war averaged about 9800,000,000 an nually, and In recent years has ex ceeded $1,800,000,000. As the event has shown, the balance was too high for her to meet continuously. With sterling depreciated and tho pro tective tariff In force her Import bal ance already has been reduced, and for the first four months this year totaled 9360.000,000 compared with 9586,000,000 In the samo period of 1930. Significance of the Figures What Is the significance of these figures? Clearly the changes In the trade balances of the debtor coun tries have been Inevitable-. With uuuniriLtj, Utf wiin uiutviuuttis, tuuiu is no other way to econonUo rehabil itation after a period of excess than that of self-denial and Intensified effort, leading back over a difficult road to balanced exchanges once more. Until payments are balanced the trade restrictions enforced by these countries are not likely to be lightened, and there can bo no re sumption or International credit op erations, which more than any other agency would be heluful to recov ery. Hence there is encouragement in tho progress made toward n bettor balance of merchandise trado, usual ly tho largest item In the total bal ance of payments. However, the countries which havo m,ado progress aro not prospering., and tho effects of the situation on the whole are very unfavorable. Ob viously It is impossible for every country to "Improve" its trade bal ance, and to the extent that some countries succeed in doing this oth ers are forced to adjust themsolves to smaller "favorablo" balances or larger "unfavorable" balances, as the case may be. The creditor nations, which ultimately receive tho pay ments made, are the ones affected. The tablo shows that the export bai anco of tho United States has dwin died steadily, and the import balance of France Increased until "quotas" wero put upon Imports, which havo reduced the Import excess this year as compared with previous yoars. Tho effort of tho debtor countries to export results in dumping on for eign markets, which has been do struct I ve to price and has tended to further disorganize trade, and de feats the purpose of the exporter to obtain mora foreign exchange. A re cent increase in volume occurred, but Er SSZSE nuTtuu for example, pointed out with I spect to Bulgaria that although ton exports tn 1030 increased 80 per cent ln volumo, they docllned 3 per cent in valuo. In 1931 a further 40 per cent Increase ln valumo occurred, but valuo declined 4 per cent moro. The figures are similar elsewhere, and for Argentina tho "Review of tho Ulver Plato" characterizes the situ ation as a liquidation "dangerously unfair and murderously disadvan tageous to tho country." Nor is the reduction ln Imports to tho minimum of subsistence require ments, which alone has made possible "Improvement" of trade bolances In tho faco of declining export values, any more a natural or healthy one. People aro being forced to go with out not only luxuries but ln many cases necessities. Evidence or social unrest In many countries which have cut imports most drastically Is proof i of tho discontent of the peoplo un- j dcr deprivation, I Undoubtedly tho pressuro on com-' modlty prices has arisen ln groat ex- tent from tho effort of alt countries i to sell moro and buy less on the in- i ternatlonal markets, j The Danuhlaii Situation j Tho most critical situation created ! by disruption of trade Is the Danub- i lan situation. The old Austro-Hun- garian empire, although racially a patcnworic, was economically a oai- anced state existing uoon a d Ivors!- - fled production and mutually ad-' vantogeouB oxchango of products. Tho! parts or tho empiro that aro now in Hungary, Rumania and Jugoslavia wero predominantly agricultural and Austria and the present Cswchoslo vokla were the manufacturing sec tions. Each Bectlon produced what It was best fitted for and each com plemented the othor, all exchanging to the profit of all. Tho orection of now political boun daries In this area of courso did not alter tho soil, climate, location of materials, abilttios and training of tho peoplo or the other factors which had determined what each section could economically produce, but the policies of the new governments havo been In tho direction of self-sufficiency and aimed at overcoming such factors rather than deriving benefit from them. The fact that tho exist ing Industrial plant was sufficient for Ltho supply of tho agricultural coun tries was ignored uy tuuiiif uuuiiuki: , the plant was now within another.; political boundary: and tho farming 1 countries set out to build factories and the factory countries to stlmu- j lato farming. Before tho separation Hungary milled wheat for tho em-1 plrc, but the other states set about building mills to bo rid or depend- I ence on Hungary. Hungary doubled Its spinning and weaving plant In j order to buy less from Czechoslovakia. I AuHtrla, an Industrial country now j bereft of Its market, has tried through 1 subsidies to build up agriculture In I the unsuitable Alpine regions, ino agricultural states, with conditions unfavorable to industry, maux-quaio Unnaport fncllltleH, unci Bklllfil Inbor IncKlnK, "avo ucen Duiramg incinnca. La Grande, Ore. nnfiienlli nmulrlltir hlnli tariff tn' kocp them going. According to tho I international chamber of commerce the tariffs of the Damiblan countries ono year ago avemged nearly doublo tnoso or most ox me western, euro- pean countries. 'April wero alotted only 1 per cent' In all this there was Insufficient ' the foreign exchange for which; consideration of tho matter which is they applied. The Austrian govern responslblo for much of tho present ment N published a list of about difficulty, namely, the wasteful cost "y items whoso importation will of tho duplication of factories, agri-, require the special permission, of the cultural activity and banking in tho government. These items are no region where the old state ox anairs waa working very well. It 1b Hid . that plants had to be abandoned and I the Investment In them lost while similar plants were built only a few miles away, but across a new border. Of courso this duplication could not support itself and tho local Indus- tries with few exceptions had not do- veloped real strength when the do- presslon began. Nor had any coun- try approached in measurablo do- gree its goal of self-sufficiency, or even altered the broad character of its trado. Vhe farm, countries con- tinuo to export farm products and lnwort manufactures, and vlco versa, Trado still dovetails, but with tho,M B"on aro endeavoring to assist. great dlfferenco that all trade is ro strlcted and hampered,- tho cost of living Is raised and tho standards of living a ro lo wored . Moreover, a smaller percentage of thoir trado Is with each other, and more with oth er countries, an uneconomical condi tion. For these countries the problem of making payments on indebtedness due abroad has been extremely dif ficult. As tho other debtor coun tries to which wo referred have dono, they have sharply reduced unfavor able balances of trade by restriction of imports, but total trado is now bo en mil in rotation to their debt that thoir difficulties aro acuto. Thus Hungary, already under a moratorl-1 um, witn dent servico oi approxi mately 950.000,000 annually had to tal exports of only about 9100,000,000 in 1031 and an export trado balance of only about 95,000,000. Trouble! AgKrtvatcd by Trade Obstructions The following extract from a re port to tho department of commerce concerning Hungary shows how other difficulties have been aggravated by the trade restrictions: "All of Hungary's principal foreign markets are restricting imports oi ag- rleulturnl products, especially ivo ro-... whi. .irlmr th luBt ,W( stock, which during tho last two years has been Hungary's most prof itable class of exports, Tho outlook for livestock exports is very discour aging. Austria, Italy and Switzer land, Hungary's three most Important mnrkots for cattle, aro curtailing Im ports further through reduction of quotas. Hog exports are suffering, owing to tho riBo of hog prices in j Hungary occasioned by tho failure of the corn crop and the necessity of importing fecdstuffs. Sheep exports! wero recently menaced by Swiss vet erinary measures, and by tho estab lishment of a quota by Franco limit ing Hungarian slaughtered shcop to only 24,000 head and live sheep to a 0 ZfV. t. ' ' Across From Pcnney's ; 2 Hills' Service Sta., Hemlock. & Adams Restaurant and Confectionery Open 5 A. M. to 1 A. M. Lunches 20c - 30c 45c Dinners 35c - 45c - 75c FULL A LA CARTE AT ALL nouns EXTRA COPIES of the CONFIDENCE EDITION May Be Secured at the Observer Office Wrapped Ready for Mailing 20c PER COPY Copies May Also Be Secured Prom Your Local News Dealer Send Copies to Your Friends VACO amnll numHaw fni tQHl Restriction of Imports by Austria has fallen with great effect upon; othor countries.. According to tho. Vienna correspondent of the London suites, importers oi Austria during ; "4W'v,ta "0. calves, pigs, butter and lard? cotton fabrics, and chemicals. ManM tcBtly t" restrictions lead to low; r "vlng standards in Austria, and "ftct elsewhere. The Budapest corA respondent of the London Economist states that this decree has caused- consternation in Hungary, that a nev, 1uota treaty with Austria will b necessary and there is little doubt: that t will result in a further Strang Buiatlo f trade. further Illustrations could be emi PoyX. but the nature of the s Uua4 tlon Is well understood. The West ern European powers and the League; ( Con tinned on Page Six) -3 Depressions Don't Alter My Confidence in Me or La Grande Everybody's future Is wreck cd when hopo is gone 1 am confident In Li Grando'c capacity to groiy, and I am confident ln my own ability to plcaso cusf tomura with good craftsc mansnip good material a reasonable price. Wholesaler, for Lilly Cups Lilly Soda Straws Lilly Food Dishes Ml of these goods bought . from mo at the same price Portland wholesalers and distributors charge. Nelson THK I'ltlNTKK Opposite Postofflce Cold and ' Deliriously Good ft 'ROOT BEER HAMBURGERS THAT MELT IN YOUR MOUTH A and R ROOT BEER STANDS Main 586 Is Next Door To Us .)