Washington, Apr. 4.
In early 1937, economic activity in the United States was increasing rapidly, the consumption of durable goods was up, industries and employment were expanding, wages and farm income were at higher levels, and security prices were the high: st since early depression days, the annual report of the Federal Reserve Board stated today.
"The rate of advance in business activity was so fast that there were evidences of unsound developments, the report said. ".... Boom conditions were developing in particular industries, and a boom psychology gan to be manifested."
Then the November crash occurred, with stock prices 40 per cent. under the March peak, and industrial production dropped 32 points to 84, while the capital market declined. Persistent reports that the United States would reduce the price of gold were traced to reports of substantial sales of Russian gold in London.
"Amidst temporary confusion," the report said, "foreign capital flooded the United States, more than $580 million dollars in foreign short-term funds arriving between April 1 and July 30.
"Americans brought back 545,000,- 000 invested in short-term paper San Francisco, Apr. 4 A high Chinese Government official told the United Press in an exclusive interview here to-day that Chinese shrimp fishermen in the San Francisco Bay area were all working as "patriotic agents" for China during the Sino-Japanese war. He said their main activities were to report on harbour activity of ships sailing for Japan or China.
The Chinese civilian agents, he said, had kept particular watch oh the schooner Kwangyuan on which the Chinese crew yesterday beat three Japanese officers. The ship, loaded with scrap iron since last December, has been detained here since its Chinese owners attempted to transfer ownership to Japanese interests; The Chinese Consulate-Gen, here has refused to issue clearance papers to the ship pending official notification of the transfer of ownership which must come from Chinese officials ín China.
The United Press was informed that on three occasions the Chinese agents reported that running lights were glowing on board the ship, indicating that it might attempt to sail for Osaka without clearance papers. On each occasion the Chinese Consul Mr. C. C. Huang, dispatched an' American Coast Guard cutter to investigate and on one ococcasion the Coast Guard cutter heard the ship's anchor drop back into the water as it approached.
Chinese shrimp fishermen camps here are situated on Hunter's Point where they command a good view of San Francisco Bay shipping channels.
FERN moly Hint of Riot abroad.
"However, after the recession began, reports that the United States might increase the pute of sold to combat the depression were circulated, and accordingly from October 6 through December 31 the United States lost a considerable amount of gold."—United Press.
Reliable sources informed—the United Press that an American Coast Guard cutter happened to be in a position to halt the Sino-Japanese riot aboard the Kwangyuan Sunday because the Chinese shrimp fishermen earlier had noticed activity on board the ship which they believed indicated the schooner was planning to sail.
Text read from the printed page and cleaned; old type leaves the occasional error.