anaheim-gazette 1932-07-07

Signs Evident That Upturn In Business Has Begun; Writer Analyses Situation Habit of Looking to Government for Miracle to Lift Depression By Its Bootstraps Has Had Peculiar Psychological Effect of Prolonging It; Uncertainities Gradually Are Removed By CALEB JOHNSON Up to a very few years ago stock exchange prices interested only a comparatively small number of people. Until the war we had no large class of investors in America. When the war came along and the Liberty bond campaigns began, millions of people for the first time paid out money in exchange for pieces of paper—for securities. After the war they found they could sell those securities for something more than they had paid for them. They hadn't expected to make a profit when they bought them, but they did make a profit, or at least got their money back. It was easy, then, for bond salesmen and stock jobbers to persuade the same people to buy other securities, and for a while the security markets kept going up, so that speculators could sell at a profit. Within a very short time we had become almost an entire nation of stock market speculators. And then the bottom dropped out. It dropped out because stock prices had gone up to figures which had no relation whatever to the value and earnings of the companies in which they represented shares. The minute international disturbances unsettled international trade and the market for commodities suddenly got narrower, resulting in the slackening of business and industry, shares should, in theory, have dropped to their actual values. Look for Miracles Instead of that, they dropped away down below their actual values, and because it necessarily takes a long time to bring about economic readadjustments, and our country alone could not cure the situation, because so much of it hinged upon the economic condition of Europe people who had tied up their money in stocks and wanted to get it out began throwing them on the market at whatever price they could get again, is not in accordance with human nature. What the people who set out to make money without working want is something that will restore the fictitious profits which they think they made, or should have made, in that effort. Such a restoration of security prices probably never will come about. It is extremely doubtful whether the present generation will ever see the list of stock exchange securities selling at such high prices as they were selling in the Spring of 1929. But down in Wall street they are still looking for miracles to happen, and the other day stock and bond prices began to go up. What started them up was the announcement that a syndicate of bankers, headed by Thomas W. Lamont of J. P. Morgan and company, had raised a fund of $100,000,000 in cash with which to buy good securities, bonds and stocks, not for the purpose of speculation, but because they are good investments at the present prices. Remarkable Example That was something that Wall street can understand. It was their own people, spending their own money, who were talking. This was not some governmental scheme promoted by politicians at Washington, but it was the decision of hard-headed bankers that the time was ripe for them to buy. The mere announcement of this pro- resulting in the slackening of business and industry, shares should, in theory, have dropped to their actual values. Look for Miracles Instead of that, they dropped away down below their actual values, and because it necessarily takes a long time to bring about economic readadjustments, and our country alone could not cure the situation, because so much of it hinged upon the economic condition of Europe people who had tied up their money in stocks and wanted to get it out began throwing them on the market at whatever price they could get, and that sent the market down still lower. And as is the way of human nature, people who have thus suddenly found themselves in a difficult situation have been looking in every direction for a miracle to happen that would put them back to where they were without any effort on their own part. "The government ought to do something about it." Well, the government has been trying to do something about it and a very large part of the activities in Washington and in the capitals of Europe and in the headquarters of the League of Nations for the past two years has been the effort to do something about it. But as each step in these governmental and international attempts to restore the economic balance has failed to work a miracle over night, the attitude of the stock market has become one of distrust of every governmental effort and activity. The Solution It must always be remembered that the people who went into the stock market to make money went in with the idea that they could get rich without working. A very few do succeed in doing that, but the great majority of people who play the market always lose in the long run. If, when the market crashed, everybody who owned stocks had just taken his medicine and said "well, that's that," and forgotten about it, and kept right on working at his regular business or his job, we wouldn't have any such difficulties as we have been going through. But that, WANT ADS Real Estate for Sale FOR SALE—Balboa $9500 furnished house, 910 E. Ocean Front. Zoned for business. Sell $4950. $950 cash. Balance 7% straight. 7-7-6t FOR RENT — FURNISHED FOR RENT:—Furnished or unfurnished. The beautiful Zimmerman ranch home, 8-rm. and garage. All modern conveniences, 2½ ml. from Fullerton and Anaheim. Reasonable to responsible parties. Address Dr. Remarkable Example That was something that Wall street can understand. It was their own people, spending their own money, who were talking. This was not some governmental scheme promoted by politicians at Washington, but it was the decision of hard-headed bankers that the time was ripe for them to buy. The mere announcement of this program has had a most tremendous effect upon the psychology of the investing and speculative public. So far as New York and the stock market people are concerned, it meant the definite beginning of the upturn. It reassured the people who had been hesitating about buying for fear that prices might go lower, and it encouraged the people who owned depreciated securities to hold on to them in the belief that their prices will go higher. It was a remarkable example of the psychological effect of a gesture on the part of people in whom the investing public has full confidence. I am writing this because, in the past few days, I have become convinced that we have not only reached the bottom of the depression, but are beginning to come up, but there is no use in expressing an opinion of that kind without some facts to back it up. Too many people have been saying for a long time that the upturn was just around the corner. It is nearer than that now. It is right here. Doubts Raised The immediate effect of even a slight rise in the stock market, if the higher prices are maintained is, among other things, to stabilize the value of stock market securities as a basis for bank loans. This in turn should enable a great many persons who could use money for productive purposes have been unable to get it, to obtain loans and so start bank credit into circulation again. The banks have plenty of money but they have not had enough demand for properly secured loans. A great deal of the recent hesitation on the part of business and industry about going ahead has been the doubts naturally raised by the political hullaballoo in Washington, as to what form of taxation would be adopted in the new revenue bill. That is all settled. Was the government going to economize? That has been settled. We have balanced our budget and the government's credit is not going to be unduly strained. There was a lot of undercover talk for a while about the possibility of the United States going off the gold basis. There never was anything to that, but the imagination of a terrified few, but it had its effect in keeping men of big means on the anxious seat, so that they were actually afraid to risk their money. Active Control of Root Weevil Uptake State Agriculture Expenditure Advise Immediate Action This is the season to conduct control measures against the berry root weevil everywhere state, the state department of ture advises, but very good should be taken to see that under treatment are properly it has been found that the effective treatment consists of 20 calcium arsenate or sodium silicate mixed with dried frine, and as such fruit may tractive to poultry or domestics it should be distributed so that will not reach it. The treatment calls for one of the chemical to 50 pounds cull fruit. If this residue fruity fine it will go further and more effective. The departments that where damage/has the fruit bait should be spread care being taken to get the particles around the plants as the leaves. It further suggest when the leaves and the bee been goured out, the grower get in touch with the county tural commissioner for specific. The best fruits to use are lime apricots, the dried skin and apples from elder mills and rains. The strawberry root weevils as young grubs and the roots of the strawberry are other plants. The adults appear late spring and summer to eggs. The weevil is most adinarily during the last days and through the months of August. Most of the weevils are readily killed by the poison if properly distributed. Don't Pass Cars On Right In Coor Don't pass cars on the right out of the city, warns officials unlawful. Passing to the right ful in cities where the right portion of the street is wide for two or more lanes is even though the lanes are not. It is also permissible to pass cle on the right when it is left hand turn. The law requires that pass either side be done at r Real Estate for Sale FOR SALE—Balboa $9500 furnished house, 910 E. Ocean Front. Zoned for business. Sell $4950. $950 cash. Balance 7% straight. 7-7-6t FOR RENT — FURNISHED FOR RENT:—Furnished or unfurnished. The beautiful Zimmerman ranch home, 8-rm. and garage. All modern conveniences, 2½ ml. from Fullerton and Anaheim. Reasonable to responsible parties. Address Dr. Zimmerman, 424 So. Broadway, Los Angeles. Furniture We Buy, Sell or Trade NEW & USED FURNITURE or WHAT HAVE YOU? Anaheim Furniture Exchange 114 N. Los Angeles St. Anaheim Poultry WE PAY CASH for poultry; any quantity market or laying. Will call. Phone 1401, R. D. Taylor. 3-20toe Painting & Paperhanging Painting, paperhanging. J. E. Saylor, 616 S. Philadelphia St., Phone 2761 Situations GENERAL repairing and odd jobs. Gene Adams, 416 S. Olive. 3954. Planos For Sale 100 PIANOS to choose from; Knabe, Bechstein, Steinway, Chickering, Klimball, etc., new and used, $35 up. Danz, Anaheim. $10 FREE! Send name of friend who wants piano and get $10 Free when we sell. Danz, Anaheim. Remove Uncertainty There are two more things which will have to be over and done with before the business and industry of the nation will get back into full swing. One is the political nominating conventions, and after those are over I look for another sharp almost perhaps not very prolonged rise in the stock market. The next is the presidential election, and, whichever way it goes, it will be regarded as having at least defined the country's policy for the next four years, and so another element of uncertainty will have been removed. In the meantime, the governmental agencies, the Reconstruction Finance Corporation, which have been entrusted with the job of loosening up credit and saving some of the railroads and big industries from ruin have been doing their job pretty well. The Federal Reserve Banks are cooperating to the best of their ability under the law. It has been, in many ways, the most curious depression in that it has been largely a state of mind. There has been a lot of unemployment, but almost nothing approaching actual starvation. A great many people have stopped buying luxuries, and have taken reductions in salaries and wages, but on the other hand there has been a general decline in rents and in almost all commodity prices, so that by comparison with three years ago the living scale of the majority of the people has not been greatly affected. And I believe that I am perfectly safe in saying that as I write this, early in June, 1932, the worst is over and we can look for fair weather ahead in business and finance. Can you afford A LAWSUITE? EXCHANGE Insurance is much less than a fee for defense, if you are in an accident. Whete are right or wrong, you prevent a suit being against you. EXCHANGE cles, backed by ample rea nd full legal reserves, your defense and pay th FARMERS' AUTO MOU Inter-INSURANCE Orange County Mutual Insurance Building Main at Eleventh Street SANTA ANA, CALIFO Office Telephone 880 87 New Books On Library Shelves Four Classifications Aided by Addition of Latest Volumes Book lovers have 87 new volumes to ponder over now. The Anaheim public library last week added these books to shelves: Adult Non-Fletlion Warden, The Evolution of Human Behavior; Andrews, Isle of Eden; Ellinore Wylie, Collected Poems; Jones, A Preface to a Christian Faith in a New Age; Soule, A Planned Society; Dorothy Parker, Enough Rope (poems); Tucker, Life in Ancient Athens; Beals, Banana Gold; Deuel, Indians, Crocodiles and Monkeys; Acheson, Joe Bailey, the Last Democrat; Baker, Dramatic Technique; Gwynn, The Life of Horace Walpole; Oglesby, Business Opportunities for Women; Shay & Loving, Fifty Contemporary One-Act Plays; Byers, Martha Berry, the Sunday Lady of Possum Trot; Thomson, Riddles of Science; Felt & Rankin, Insects and Diseases of Ornamental Trees and Shrubs; Corey, The Truth About Hoover; Babbitt, On Being Creative and Other Essays; Tanagawa, Holy Prayers in a Horse's Ear; Dictionary of the Bible, and Mythology of All Races (13 vols.) Adult Fletlion Sylvia Thompson, Summers Night; Richard Bryce, Morgan's Yard; Jackson Gregory, The House of the Opal; Barnaby Ross, The Tragedy of X; A. Hamilton Gibbs, Undertow; Philip MacDonald, Escape; Charles Morgan, The Fountain; Patry Williams, The Word of Tomorrow; Sophile Kerr, Girl Into Woman; Lorna Rea, The Happy Prisoner; Gordon Gardiner, The Man With a Weak Heart; Barrett Willoughby, Spawn of the North; Janet Ayer Falrbank, The Lion's Den; Grace Stone Coates, Black Cherries; Roger Burlingame, The Heir; David Grew, Migration; Luigi Pirandello, The Out- State Inspects L. A. Meats Now Arrangements Made In Order to Save Money for Taxpayers In answer to a request by the Los Angeles county board of supervisors, Director Dudley Moulton of the state department of agriculture, on July 1, placed all abattoirs and meat processing establishments in that county under direct state supervision. Arrangements for the move were conducted between the Board and Dr. Joseph J. King, chief of the division of animal industry in the department. The action in Los Angeles county is in line with the effort of the board to balance its budget and also to effect what it believes will be a decided improvement in its meat inspection system. It has been figured that a saving to the tax payers of some $45,000 a year in that county can be effected by the change, inasmuch as the inspection costs will be met by the packers under the fee system by which the cost of state meat inspection is maintained. This arrangement follows the transfer to the state of the abattoir inspection service formerly conducted by the City of Los Angeles, which was made at the request of the Los Angeles city health department on April 1, coincident with the going into effect of the new California Meat Inspection Law. Whispering Wind (Folk Tales of the Navajo Indians); Page, The Hound of Culain; Bennett, Around a Toadstool Table; Anderson, Wonder Stories; Kirkland, Shenzoo, the Story of a Moose; Bailey, Stories Children Want, and Pratt, Animals of a Sagebrush Ranch. Junior Fletlion Thorburn, Hildebrand; Radford, Little Brown Bruno; Turner, Ray Coon to the Rescue; Martin, The Wolf-a Head and the Queen, retold from "Child Christopher;" Ford, Imagina; Favorite Pages From Child Life; French, The Active Control of Root Weevil Urged Agriculture Experts Advise Immediate Action The season to conduct active control measures against the strawroot weevil everywhere in the state department of agriculture advises, but very great care must be taken to see that the beds treatment are properly guarded. It has been found that the most effective treatment consists of the use calcium arsenate or sodium fluoride mixed with dried fruits, cut and as such fruit may prove attractive to poultry or domestic pets. Should be distributed so that they not reach it. The treatment calls for one pound of chemical to 50 pounds of the fruit. If this residue fruit is cut fine it will go further and prove effective. The department suggests that where damage/has occurredruit bait should be spread widely being taken to get these fruiticles around the plants and under leaves. It further suggests that the leaves and the berry have gouged out, the grower should touch with the county agriculcommissioner for specific advice. The best fruits to use are low grade roots, the dried skin and pulp of fruits from elder mills and raisins. The strawberry root weevil overruns as young grubs and work on roots of the strawberry and many plants. The adults appear in the spring and summer to lay their The weevil is most active orally during the last days of June through the months of July and last. Most of the weevil adults readily killed by the poisoned fruit properly distributed. N't Pass Cars On Right In Country It isn't pass cars on the right when of the city, warns officials. It is useful. Passing to the right is lawn cities where the right one-half on of the street is sufficiently for two or more lanes of traffic, though the lanes are not marked. Also permissible to pass a vehicle the right when it is making a turn. The law requires that passing on or side be done at reasonable Richard Bryce, Morgan's Yard; Jackson Gregory, The House of the Opal; Barnaby Ross, The Tragedy of X; A. Hamilton Gibbs, Undertow; Phillip MacDonald, Escape; Charles Morgan, The Fountain; Patry Williams, The Word of Tomorrow; Sophie Kerr, Girl Into Woman; Lorna Rea, The Happy Prisoner; Gordon Gardiner, The Man With a Weak Heart; Barrett Willoughby, Spawn of the North; Janet Ayer Falrbank, The Lion's Den; Grace Stone Coates, Black Cherries; Roger Burlingame, The Heir; David Grew, Migration; Lulgi Pirandello, The Outcast; James B. Connolly, Steel Decks; Robert Simpson, Eight Panes of Glass, and Isa Glenn, Southern Charm. Junior Non-Fletlon Ilin. What Time Is It? The Story of Clocks; Beard, the Complete Playcraft Book; McMurry, Ploneers of the Rocky Mountains and the Wets; Hunt, California, a Little History of a Big State; Eliper, In My Zoo; Joyce, An Illustrated History of Ireland; The Boy's Froissart (Sir John Froissart's Chronicles); Harper, Around the Hearth Fire (Stories of Favorite Holidays); Carroll, Alice's Adventures Under Ground; Linderman, Old Man Coyote; Norris, Heroes and Hazards; Malcolm-Smith, Professor Peckman's Adventures in a Drop of Water; Frazer, The Singing Wood; Chenoweth, Stories of the Saints; Ogden, The Boy's Book of Famous Regiments; Allen, Whispering Wind (Folk Tales of the Navajo Indians); Page, The Hound of Culain; Bennett, Around a Toadstool Table; Anderson, Wonder Stories; Kirkland, Shenshoo, the Story of a Moose; Bailey, Stories Children Want, and Pratt, Animals of a Sagebrush Ranch. Junior Fletlon Thorburn, Hildebrand; Radford, Little Brown Bruno; Turner, Ray Coon to the Rescue; Martin, The Wolf-a-Head and the Queen, retold from "Child Christopher;" Ford, Imagina; Favorite Pages From Child Life; French, The Lance of Kanana; Evans, Old Time Tales; Wilder, Little House in the Big Woods; Yap, Abigail's Private Reason; Fyleman, The Strange Adventures of Captain Marwhopple; St. Clair, More About Max; Baruch, Big Fellow at Work; Brandeis, Jack of the Circus; Lownsbery, Out of the Flame; Cobb, Andre; Daniel, Shuttle and Sword; Limpus, The Sea Lord, Francis Drake; Skinner, Debby Barnes, Trader; Hilles, A Mile of Freedom; Becker, Under Twenty; Sackett, The Cousin From Clare, and Lindegren, Ingrid's Holidays. ENSENADA ROAD TO BE PAVED Contracts have been let for paving the highway from Tia Juana to Ensenada, Mexico and work will start in the immediate future. Southern County Capitalized at $17 ANAHEIM - CYPRESS - BUENA OFFICERS: J. W. PHELPS, President WM. SCHUMACHER, Exec. Vice President A. NAGEL, Vice President F. J. MOUNTAIN, Vice President Cash and due from B RIGHT IN COUNTRY Don't pass cars on the right when of the city, warns officials. It is painful. Passing to the right is law in cities where the right one-half of the street is sufficiently for two or more lanes of traffic, though the lanes are not marked. Also permissible to pass a vehicle on the right when it is making a hand turn. The law requires that passing on or side be done at reasonable distance and under conditions with foster safety. A horn signal or phone warning must be given before attempting to pass a vehicle outside of city limits. DR. BRINTON APPOINTED Fill the position made vacant by death of Professor W. W. Scott, department of chemistry of the University of Southern California, President R. B. von KlelnSmid announces the appointment of Dr. Paul L. P. Brinton. Can you afford A LAWSUIT? EXCHANGE insurance cost is much less than a lawyer's price for defense, if you are involved in an accident. Whether you are right or wrong, you cannot prevent a suit being brought against you. EXCHANGE policies, backed by ample resources, and full legal reserves, provide your defense and pay the bill. FARMERS' AUTOMOBILE Inter-INSURANCE Exchange Orange County Mutual Fire Insurance Building Main at Eleventh Street SANTA ANA, CALIFORNIA Office Telephone 8860 OFFICERS: J. W. PHELPS, President WM. SCHUMACHER, Exec. Vice President A. NAGEL, Vice President F. J. MOUNTAIN, Vice President H. A. HAWLEY, Cashier A. W. PHELPS, Secretary GEO. B. MILLER, Treasurer LOUIS A. FRY, Asst. Sec'y, Cashier BERT M. WELLS, Asst. Cashier ANDREW W. MOORE, Asst. Cashier DIRECTORS: WM. ABPLANALP R. E. LODGE ALFRED NEWMARK E. J. NAGEL F. P. SAPPINGTON O. E. STEWARD H. W. THIENES W. I. TOOMEY H. E. WARREN Cash and due from B. State Municipal & U. Other Bonds Loans & Discounts Vaults, Furniture & Including Branch Other Real Estate Other Assets This law makes state meat inspection compulsory in counties of 27,000 population and over, with the proviso that municipalities within such counties may conduct such inspection under the approval and supervision of the state department of agriculture. With the going into operation of the law the state assumed direct supervision of inspection in 144 slaughtering and meat processing establishments throughout California, while 136 establishments were approved by the state to be operated under municipal inspection. Passage of the law had its effect in stimulating building construction throughout the State. In a number of instances new plants were erected to replace those which were condemned, and many others were remodeled to comply with state meat inspection requirements. In addition metal equipment which may be easily maintained and cleaned was established as a standard everywhere. The Florsheim Shoe The Florsheim Shoe Now! $6.85 and $7.85 F. A. YUNGBLUTH "THE HOME OF HART SCHAFFNER & MARX" 145 West Center Street Anaheim, California County Bank Realized at $175,000 BUENA PARK - EL MONTE Southern County Bank Statement of Condition at the Close of Business June 30, 1932 RESOURCES Cash and due from Banks ..... $ 229,611.60 Southern County Bank Statement of Condition at the Close of Business June 30, 1932 RESOURCES Cash and due from Banks ... $ 229,611.60 State Municipal & U. S. Bonds ... $344,960.05 Other Bonds ... 34,761.25 379,721.30 Loans & Discounts ... 695,272.10 Vaults, Furniture & Fixtures including Branches ... 11,728.75 Other Real Estate ... 8,006.16 Other Assets ... 822.30 $1,325,162.21 LIABILITIES Capital ... $ 175,000.00 Surplus ... 40,000.00 Undivided Profits ... 25,332.28 Reserve for Dividends, Interest, Taxes, Contingencies, etc. ... 30,000.00 Bills Payable ... 110,012.80 Deposits ... 944,817.13 $1,325,162.21