| Show t a. a THE DAILY V WASHINGTON AS INGTON J I Fin Financial a n cia 1 V Whirligig 11 i r 1 i gig Written for be TIle The Telegram nm 1 By JAMES McMULLIN NEW NEV YORK YORK Local Local bankers say the administration administration administration admin admin- is pulling another with two shot hot move in m its term long-term financing program to be announced ir k ir June Apart from irom saving interest charges by converting Fourth Liberties and making it unnecessary for the treasury to seek further funds until next March as recently recent recent- ly indicated in this column column it it also gives a subtle shove to industrial credit expansion The banks are loaded up with term short-term government issues and about two b billion Ilion dollars dollars dollars dol dol- lars of these arc are to be retired permanently What will win the banks do with the money in instead instead instead in- in in- in stead Part of it of course will go into subscriptions subscriptions subscriptions sub sub- for the tho new bonds but not so much muchas as you might think Such term long-term investments investments investments invest invest- ments have more appeal to private investors than to banks and the public will wiH probably be further encouraged to tf take up a lar large e percent percent- percentage percenta a age e of the offering bv by issuance of a large block of the bonds in sm small smi-ll ll denominations Usury En n Reverse I One New ew York bank cites the following case to prove that credit is available available and and cheap cheap to to desirable borrowers It granted a loan for six months recently to a manufacturing manufacturing manufacturing man man- concern against future sales con con- tracts Its interest charge on the the loan was wasat wasat wasat at the rate of three-quarters three of 1 per cent a year Talk about price-cutting price Fear of labor unrest is a serious obstacle to rapid credit expansion Several corporations are known to have called off borrowing plans because of incipient strikes They could see no point in hiring money which would be useless useless useless use use- less to them if production were tied up This Thi argument will be used extensively in Washington Washington Wash Wash- ington to prove that the government should deal more firmly with labor Threat to to Labor Not Empty The motor industry is preparing for another showdown with labor Several officials of large companies make mak no bones of their in intention intention in- in to close plants entirely rather than yield further concessions The informed say this is no empty threat The industry is in a much better position to stand a shutdown than it was when the previous pre crisis arose Consumer resistance to higher prices is beginning to have a marked effect and production schedules are arc slackening Some of the smaller companies companies- especially companies specially especially the equipment makers makers have have a difficult riddle to solve Authorities say they cant can't possibly show a profit wit their present wage costs and they cant can't see sec the faintest chance of re reducing reducing reducing re- re these cost without running on head-on into trouble The Ford Technique Recently workers in one of the Ford machine shops decided decide to organize and suddenly suddenly suddenly sud sud- denly all appeared at the plant wearing union buttons Nobody offered any criticism and nobody was fired But in about a week these workers were transferred to another shop al already already already al- al ready manned by other union members Again nobody objected But after a couple of weeks Mr Ford decided he didn't need the services of that particular shop any more and shut it completely thereby completely thereby separating the union men from their jobs That shop has not been reopened since Local shoppers open-shoppers were much impressed by Fords Ford's handling handlin of the situation He has hasa a perfect defense against charges of discrimination tion ion and yet he completely succeeded in eliminating dim elim mating the dreaded outside influence ce S S S i 11 i 1 Insiders will give you three to one that Henry Ford wins his court joust to prove that Comptroller General McCarl exceeded his au authority authority au- au in ruling that the government cant can't buy Ford cars because Ford hasn't signed the code Rails Face Tough Problem N R A has increased the cost of railroad materials as much as per cent in some categories cate cate- gories with gories-with with an average between that figure and the halfway mark Coal prices have jumped from to a ton The present rat rate of oi traffic gain gain if if continued contin contin- will will enable the roads to meet the 36 million wage increases arranged with the brotherhoods broth broth- for July 1 and again on January 1 out of earnings But they dont don't expect to earn enough to meet the second hall half of the increase increase- 75 millions due millions due next April Only unforeseen traffic improvement between now and then will keep them from dipping into reserve next spring The number of railroad has been cut in half hal in the tho la lat t 15 years but years but operations operations operations opera opera- have taken L a. corresponding drop The railroads helped the striking stevedores here by not sending in barges But it was a apure apure apure pure case of self interest self not not love for the strikers The roads road simply couldn't see tying up their lighters with no assurance when they would be unloaded Wall Vall Street comments that what the employers need is bigger and better solidarity S S 0 The government bonds to be issued in li June will probably have a year 15 maturity lD 1034 t Newspaper Bm Syndicate |
