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APR
ESTABLISHED 1S39
Re*. U. S. Pat. Office
Volume
McCabe and
as an
By WILLIAM F. HAUHART
of Finance,
Professor
Dr. Hauhart contends,
BRATTER
By MELCinOR
'
Szymczak regarding extension of
Szymczak urges
difficulties of invading Russia, Dr. Palyi points out
with that nation would result in extinction of
dollar's purchasing power, repudiation of national debt, and break¬
down of nation's social structure.
Holds man-force war is archaic,
because of the peculiar postwar phase of
long continued
are causing bank credit expansion, and thus intensifying
inflationary trend. Sees danger in forcing business corporations to
borrow for capital and advocates lower taxes as incentive to
increased production.
-
reconstruction restrictions
on use
McCabe favors less
of credit, and
control than enforcement of
It is my purpose
Spe¬
cial Reserve Plan. McCabe favors
found
controlLng bank holding com¬
problem of inflation.
panies.
30—(Special
:
most
in
treated
;
often
to
,
a
and
business
men.
But fur¬
ther
analysis
will be
devi¬
the
di-
rection
of
under
h i 1
w
■
n
a
t
o
relationship of taxation to the
;■■■ /'
by both economists
.-■•'V"
/'.V.<
The some 220 divisions
Hitler sent into Russia
v-
somewhat
clearer under¬
W
standing
■
To
an
^3
|
leadership was ,-|
in the hands of k'
We See It
be
.<---1
\ ':t
§§r
the
that
cate
i f
probably the
'
memoirs indi¬
EDITORIAL
• old-school
;
generals, not
Economics, Defense and Relief
politi-
of Nazi
j
observer" from
Olympus it would, we are certain,
seem a little strange
Tobey V(R.
ip hear generally intelligent, and cer¬
the
problem
N. H.),.
the
w i t h
which tainly sincere, men: and - women seriously and repeatedly
Senate Bank¬
we
are
con¬
asserting that gifts to foreign peoples, generous far beyond
ing and Cur¬
fronted at the
any historical precedent, and (now mor<* recently, defense
rency
Com¬
present time.
mittee's. in¬
One of our expenditures on a greatly enlarged scale) will be sufficient
quiry into the Dr. Wm. F. Hauhart r d
iffi(c ulties if not necessary to keep the wolf from our door — or in
fitness of Mr
seems
to be more popular language prevent the development of a de¬
Thomas
B
the notion,
rather widely held,
pression with its long train of unemployment and hardship.
McCabe to be
Charles
hip.
<$> leaders
.
given " toward
i
were
organized, best trained, and best equipped the world had seen
up to that time.
Certainly, in comparison to the substantially larger
Russian army, the Nazi might was superior in every way, including
best
(Goebbels'
aid
should
Chairman
e
fallacy in idea
worth
e
thereby
a
S
technical training for youth, not military drillings Sees
mass occupation of Russia is essential in war and
contends aerial supremacy eliminates necessity of physical control.
Concludes UMT is expensive and has no educational value.
and urges
somewhat different approach than is
The basic elements involved have been well
course
ous
its
a
previous articles in the "Chronicle"
D.
suing
to use
discussing the
in
C.—March
the Chronicle):
After pur¬
WASHINGTON,
;
war
.
of credit
controversial methods
-
capital,
credit controls.
Wisconsin
Professor, University of
After explaining
cycle, high taxation is no longer an effective deterrent to
inflation as during the war.
Argues high taxes, by preventing ac¬
cumulation of individual savings and by reducing volume of risk
Washington observer gives views
PALYI
.
business
-of Thomas B. McCabe and M. S.
Copy
Sense?
Or Lack of
Louis University
St.
a
U. M. T.: Show
Inflation Deterrent
on
By HERBERT M.
Price 30 Cents
York, N. Y., Thursday, April 1, 1948
New
Number 4686
167
of
cians.H/ A
n d.
what did it ac-
Of v
complish?.
course,
.
v
Herbert
Brattei
M.
*
member of
of the
System last week
Governors
of
Board
the
a
/
,
Federal Reserve
got around to asking the
nominee questions directly related
to the work of the Board. And this
week Senator Tobey, in pursuit of
finally
objective of ascertain-
his declared
high
taxes will have; an
Reactions in a number of markets and in
anti-inflationary effect under allcircumstances at all times. Some business to such reasoning as this during
that
that
insist
this
time even tc
Others are
no
of tax reduction.
talk
to lower government
expenditures which would nat¬
urally facilitate the -lowering of
unwilling
"(Continued
on page
31)
PICTORIAL
*
appear
to grow from several
One of them doubtless is recollection of the
roots.
upswing
the Greek and
(Continued
,
on page
30)
'
'I
-
,
•
"
Dr. MileUor Paly!
resistance, without Allied
air attacks on German communi¬
cidal
cations
and
industries, and with¬
Russia, the final
out lend-lease to
might have been differ¬
as it may; the fact
is that such a flawless military
machine of some four to five mil-
outcome
that
Be
continued
on page
->C,:
32)
Slate and
-
Chicago.
t.'
j..
Municipal
•**
'
-
■■■#
Yugoslav sui-.
activity which followed our defense program in
our
assumption of the role of the "arsenal to
democracy" in that and the following year. President Roose¬
velt and his New Deal followers had been vainly trying to
in'V
H
to
due
1941
in economic
and
lost
the summer of
ent.
sort
six
the
Havana
r
•/,
Conclusions of this
-
for
INSERT
IBA,
the
of
two have been marked.
1940
pictures. taken
at 12th Annual
Conference of the Central States
Group
the past week or
T
(Continued on page 42)
See
branches of
some
out ;
weeks
Lithographing Co.
R. H. Johnson & Co.
:
V
•,
Established
;
1927
INVESTMENT SECURITIES
*
Bond Department
Hirsch & Co.
Members
New
Stock Exchange
';
York
4, N. Y.
Troy
.
NEW
London
Cleveland
Geneva
Woonsocket
Scranton
>V
Bond Dept. Teletype:
Washington, D. C.
52 WILLIAM ST.. N, Y.
NY 1-708
For
Banks,
(Orlando,
Fla.)
Due Mar. 1, 1958
plus Accrued Interest
Convertible into 333 shares
common
stock per bond
Copies of Offering Circular on request
Gordon Graves & Co.
,-v
Montreal
•
*
;
OF
Toronto
THE
f :
CITY OF NEW YORK
Brokers and
Dealers
Street, New York 4, N. Y.
Tel. WHitehtll 3-2S40
Tele. NY 1-809
New
Public Service Co.
BONDS & STOCKS
Distributors of Municipal
and
Corporate
;
Domimon Securities
SUTRO BROS. & CO.
Est.
Members New York
1899
CLEVELAND
Chicayo
D«"v«r
Columbus Toledo- Buffalo
New York
Cincinnati
120
,
>
GRPORATIOTI
1896
Stock Exchange
40
:
Exchange Place, New York 5, N.Y,
Telephone REctor 2-7340
NY 1-702-3 '
„
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Members New York Stock
and
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other Principal
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request
upon
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Bought—Sold—Quoted
Securities
OTIS & CO.
.
England
securities
Underwriters and
INSTITUTIpNAL INVESTMENTS
30 Broad
NATIONAL BANK
HAnorer 2-0980
foreign
'
$295,000 10-Year 1st Mort. Conv.
6% Bonds
Dated Mar. 1, 1948
of
.
Bell Teletype NY 1-395
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'
i
.
New York
AMERICAN MACHINERY CORP.
■
\
(Eepresentative)
ISSUE
Price 100
Members
Hew York Security Dealers Assn.
;
Springfield
Wilkes-Barre
OF NEW YORK
Syracuse
Buffalo
Albany
Harrisburg
THE CHASE
'
•
'
Chicago
HART SMITH & CO.
'
Teletype NY 1-210
HAnover 2-0600
THE NATIONAL CITY BANK
PHILADELPHIA
^
BOSTON
and other Exchanges
25 Broad St., New York
New York 5
64 Wall Street,
:
.Teletype NY
Enterprise 1820
Telephone:
2
(1418)
THE
\\
Pacific Gas &
•''f
Rights & Common, W. D.
Debentures, W.
Prospectus
I.
New York Hanseatic
Corporation
7-5600
Teletype
-
NY
When
•
I
1-583
accepted
s."
n e s
Virginia Elec. & Power
Deb.
out
that
have
caused
to
change
me
Z%s, 1963
Congress
The
events
Request
'
the
McDonnell & To.
the
go,
Commu¬
Act
quately
nist seizure, of
many ol
still
protect
does
not
workmen
and especially the
public
generally against the abuse of mo¬
slovakia;
nopolistic
New
York
(3)
is
T
S
C.
Tel. REctor 2-7815
E.
Wilson
ACTIVE MARKETS-
March
17.
strikes
in
The
the
industries
n's
a
to
Congress
remind
While
m
u
the
the
—
Sold
—
the
went
only part
majority of the
;
not
and
like
them
exer¬
politics,
in
/
Aetna Standard
Engineering
American Time Corp.
Artcraft Manufacturing
wars
Manufacturing
Boston & Maine R.R.
Clyde Porcelain Steel
Electric Bd. & Share Stubs 7
General Aniline & Film "A"
Hood Chemical
International Detrola
Kirby Lumber
Newmarket Manufacturing
action bi taken
at"
ended. V
That
•,
1
istence
would
tions,
de¬
Distilling
desire
tilities
peace
the
the
the
&TeeneaniCompan^
Members N. Y. Security Dealers
Assn.
37 Wall St., N. Y. 5
Hanover 2-4850
Bell Teletypes—NY 1-1126 &
1127
of
Bernard
M.
the
world.
bilization
of
power
that
so
sufficient
the
military
economic
^
United
would
become
We
have
effective
learned
ordeals and trials.
There is noth¬
ing automatic about it.
Strengthen America
It is against this background of
the absence of peace that one must
discuss the subject of Universal
Military Training, which will af¬
fect so deeply the lives of our
1948.
and the future.
young men
The
^Testimony by Mr. Baruch be¬
Armed. Services-Com¬
mission.
Washington, D. C., March
President
has
wisely
A
return
considered
versal
to
a
the
draft
cannot
Stock
Exchange
Noranda Mines
New
York
Curb
Exchange
Brown Co.
And other
Minn. & Ont.
'
Exchange
Exchanges
Placer
with
Paper
Development
4
f
NEW YORK 4, N.
•
-
-
Y.
■
CHICAGO
DETROIT
PITTSBURGH
GENEVA, SWITZERLAND
5
:
•
Teletype NY 1*1227
Central States Elec. (Va.)
Common
,
Detroit Int'l Bridge
| Aspinook Corp.
Hoving Corp.
,
„
I
Frank C. Masterson & Co.
.
s
-
„
*
-
Established
Members New
64
WALL ST.
York
:
1923
Curb
Exchange
NEW YORK 0
v
Teletype NY 1-1140
HAnover 2-9470
Curb and Unlisted
Military Training.
What¬
the
recent
as
itselfr—
program of
preparedness
which,
been adopted, would have
Hitler from breaking loose.
kept
:;^Tc^a^:.Univers^.,Military. Train¬
ing
Is
past
even
more
urgent.
our measures
fense
always
We
Members
New York Curb Exchange
Chicago Stock Exchange
waited
war
We
Digby 4-3122
,
New York 6
Teletype NY 1-1610
of national de¬
lagged
behind
to
be
the
shown.
Federal Water
had been unloosed
sufficiently convinced
v:y
y,: -.y
act. y
39 Broadway
In the
were we
to
& Gas
Must Prevent War
Today the necessity is to keep
from starting. So terrible are
Southern Production
war
it
destructive
is
potentialities
instrumentalities
of
of
war,
longer
no
good enough to
an
aggressor after he has
begun a war. Preveting/war re¬
quires buttressing our national se¬
curity before the crisis is upon us.
(Continued on page 35) I; :
punish
of INDIA, LIMITED
Bankers
to
the
Government in
Kenya Colony and Uganda
Head
Office:
26,
Troster, Currie & Summers
Members
.
New
York Security
Dealers
■■
if.
i
Ass'i}
Teletype—NY 1-376-377-378
^
.
Branches
In
India,
Goodbody & Co.
6, N.Y.
1-672
Burma,
and Aden
Subscribed Capital
Paid-Up Capital
Reserve Fund
The
Bank
and
Ceylon,
and
Equity Oil
Kenya
Zanzibar
_£4,000,000
£2.000.000
£2,300,000
every
description
exchange business
Trusteeships and Executorships
.
'
Utah Southern Oil
<
conducts
banking
Empire State Oil-
Bishopsgate,
London, E. C.
Teletype NY
Joseph McManus & Co.
NATIONAL BANK
Securities
Department
'i
a
by
had it
British
"
part of
before
years
war—not
one
'90
Members N. Y. Stock Exchange and Other
Principal Exchanges
115 BROADWAY
NEW YORK
Telephone BArclay 7-0100
is not les¬
Universal Mili¬
American
Gaumont-British
Canadian Securities
Securities
they
security
favored
but
the
be
manpower
tary Traning in the
Scophony, Ltd.
Department
Exchange Bldg.
the
national
our
sened.
Colony
N. Y. Cotton
WOrth 4-3113
Bell
immediately the need
permanent
strengthening of
modern
is done to provide the
armed
United Kingdom
4%
Rhodesian Selection
Exchange
Trade
•
Broadway, N. Y.
'
have
a
re¬
substitute for Uni¬
We Maintain Active Market$
in U. 5. FUNDS for
York
Inc.
forces
must
for
y,;
quested re-enactment of Selective
Service.
It should be
approved.
ever
New
of
\*
v
Members Baltimore Stock
Exchange
page 30)
,
Not until
H. Hentz & Co.
Board
•
Mitchell & Company
implement both selective draft
need.
hope that
fore Senate
Members
aid
Barucfa
that making peace
brings its own
29,
vast obli¬
on
hi-jacked and
that the voice of America will
speak of courage and hope, not of
fear and disaster.
While seeking to bring into ex-
Established 1856
take
throughout
sent overseas is not
meant
immediately..
which
so
hos¬
and
Nations
Swasey
to
cessa-
of
o n
r
They
are
growing
obligations,
They require economic assistance.
They require our spiritual leader¬
ship. They also require the mo¬
and of the be¬
mere
conditions'
been forced to
our
that
the
give life to the United Na¬
the American people have
gations
young men
back
home
t i
Telecoin Corp.
Chicago
to
-
too
born of
bring
lief
United Piece Dye Works
U. S. Finishing com. & pfd.
Taca Airways
New Orleans Cotton
once
Financing
Pfd.
<§>-
shooting
?•;
the
*
Time, Inc.
Exchange,
on
taken immediate¬
ly after the
was
Taylor Wharton Iron & Steel
Pacific Telecoin
Cotton
(Continued
.
&
no
mobilization
Northern New England
Punta Alegre Sugar
York
Com.
and Will be advanced
peace.
The United Nations was established to
keep a peace which does
therefore has not been able to function
effectively. We now face the neces¬
sity of retracing at least partly those
steps of scuttle-and-run which were
hurried
.
New
American National
for perpetuating this present un¬
restricted power. In
this, unions
may be joined by individual em¬
ployers : and group of employers
who think it is to their own; self-'
War I
Coal, Com. & Pfd.
Interstate Hosiery
v
May, McEwen & Kaiser
reasons,
on their
military training as well as industrial mobilization.
Cites errors in
unpreparedness of
fully armed and prepare 1 so free peoples of world will
ally themselves with
training as mentally and physic illy helpful to trainees, and as
creating better under¬
standing of democracy by all segments of society.
■
Commodity
;o
they
past and says we must be
us.
Sees military
There is
<
MobilizaiioxiINowSHi
urges
Carborundum Co.
-
By BERNARD M. BARUCH*
Chairman, War Industries Board, World
branch offices
our
not exist and
Baltimore Porcelain Steel
Title Guaranty & Trust
United Artists Theatre
y
Elk Horn
unions
120
Many
plausible
them
of
in¬
to
not
face, have
government
and
industrial
La.-Birmingham, Ala.
Kingan & Co., Com. & Pfd.
cre¬
1
expressions.
some
point where
free society.
finance
present
do
lar
a
in
dictatorship
"
.,
NY 1-1557
the
monopoly
give them up easily..
They deliberately attempt* to con¬
fuse the real issues
by using catc'r
phrases like "repressive
legisla¬
tion," "slave labor law," and simi¬
They
do
of
a
Direct wires
monopo¬
lies
threat¬
power
\
through
that
New Orleans,
not
security
Americans do not like monopo¬
lies or dictators of any kind.
V
DIgby 4-2370
(XctualTWarkeU Qu
Warner &
in
form
in¬
Exchange
St., New York 4, N. Y.
loss of
the nation. Those who think
have vested interests in
.-
Have Full
and universal
Merchants
evidenced
liberty
power
Members New York Stock
25 Broad
the most powerful
monopolies
have
ever
existed.
They
threaten the economic
Quoted
Elder statesman of two world
v
taken, this
to develop to
ens
Commerce, Warren, Ohio, March
1948.
1
W '
Teletype NY 1-1943
Bates
as
power
not
are
23,
of
Steiner, Rouse & Co,
that
the supreme power of
government
and, if sound corrective measures
*An address
by Mr. Wilson be¬
fore
the
Warren
Chamber
of
SIEGEL & CO.
Broadway, N. Y. 0
Bough t—5 old—Q uoted
are
through industry-wide bar¬
gaining has already challenged
,
Bought
such
power
it will destroy our
REALESTATE
individual
cised
\o n
that
me
union
currently being
the coal industry.
Monopoly union
monopoly union
packing and coal
Taft-Hartley Act
way.
r
President
speech
'-./tv
:
.
STOCKS & BONDS
\
Ameri¬
instinctively fear the
abuse
them¬
Czecho¬
BROADWAY, NEW YORK
cans
selves
York Stock
Exchange
Curb Exchange
like them in labor either.
ade¬
New
Members
30
circumstances,
majority of or any
country clearly ates.
favor its provisions as far as
they
The
coal
packing
indus tries;
(2)
120
Louisiana Securities
.
HAnover 2-0700
dustry, and it is becoming
creasingly clear that they ao
real progress and the
the people in the
and
.
worked
possible
the problems the Act
might have
solved are still unfinished busi¬
ness.
While the
Act represents
mind are:
(1)The strikes
in
on
courageously
best compromise
the
under the
my
Bought—Sold—Quoted
Prospectus
Alabama &
invitation to. be
your
finished Busi-
Conv.
,
your speaker this
evening I had in mind
talking about the automobile industry, its problems and its
responsibilities. Recent events
have caused me to
change my mind, and I am going to speak this
evening on the subv
ject of "Un-<j>
Broadway, New York 5
BArclay
-
.
President of General Motors
monopoly power obtained
through nationwide bargaining, and attacks attempts of labor
organizations to control industries
by
extending scope of collective bargaining to include managerial
function, as well as provisions for
pensions, insurance and welfare work. Urges scope of collective
bargaining be defined by law, and
condemns Communist seizure of Czechoslovakia as
indicating increasing threat to free
peoples.
BOUGHT—SOLD—QUOTED
120
Thursday, April 1, 1948
Leading industrialist points out nation's "unfinished business" is indicated in
shortcomings of ths TaftHartley Act and Communist seizure of Czechoslovakia. Scores trade union
request
on
CHRONICLE
,
;
& Power
&
FINANCIAL
By C. E. WILSON*
J
Virginia Electric
Rights
&
Unfinished Business'
i
i
Electric
■
COMMERCIAL
-also undertaken
;||!|
James M. Toolan & Co.
of
67 Wall
Street, New York 5, N.Y.
Tel. HAnover 2-9335
|
Bell Tele. NY 1-2630
THE COMMERCIAL
Number 4686
16T
Volume
I N D E
Articles
,
U. Ml T.:
Show of Force
—Melchior
F^ly i
—.---V*
- ~
—William F. Hauhart
McCabe
and
Szymc&ak
—Herbert
M.
News
-
- -- - -
<So ver
Inflation Deterrent
Credit Control
:
...
:.t^r
_l___Cover
Br alter
"Unfinished Business'— C. E.
Baruch__ll
Have Full Mobilization Now!—Bernard M.
Prices After Two Wars—Jules Backman
(1419)
B. S.
by Ihw, custom and
usage long before statutory creation of SECl Development of new
doctrines by SEC criticized. This is a legislative function: and not
within the ambit of administrative powers. First
Hughes case dis¬
cussed in the light of its doctrine. Dealers act at their
peril! No
___
on
CHRONICLE1
2
;r
2
V
3
TcnsTEin
Practices in securities industry well defined'
'
--—-----
as an
FINANCIAL
.
The Reach lor Power
Page
Lack of Sense?
or
High Taxes No Longer Serve
,
and
&
AND COMPANY
APRIL
FOOL'S DAY
uniform definition of reasonable relation to market
price has been
The scheme is another cog in SEC eff orts at
price control.
Maybe we'll fool
reached.
by making
you
good bid.
a
_
Sobering Realities Regarding Tax Burdens
ly addressed
a meeting of the Stock Brokers' Associates of
Chicago, choosing as his topic "The SEC and* the Broker-
4
—Edmond E. Lincoln.*
Who Killed Cock Robin?—Theodore Prince,—
6
Golds and Our Managed Currency—Thomas I. Parkmson____
6
Dealer.""
Why the Ruhr Is Lagging—Joachim Joesten__
7
Trends
8
of his remarks, Mr.. Loss said:
"What I shall
try to do today, therefore, is to- trace briefly
the history of the several doctrines which the Commission
Affectihg Real Estate Values—William A, Marcus—
What Happens When Stalin
Wisdom for
8
Dies?—Henry J. Taylor
Bull Market—Herbert G. King_,_^;,_,
a
Railroads
Tendencies—A.
W.
Zelomek
15
Factor in More Production—Gustav Metzman,.
as
16
!
What Should Be Done About Russia—H.
Food
19
Murray-Jacoby^i,, 20
Reducing Bank Bond Holdings-Effective Debt Management
—Morris M.
To wnsfcuet
#
The Reach for Power
James A.
'**
■
;
>/!' ~
■
/
,
_
*.'.'.V.
14
lnternationai
u.
Tt'aue
Chilean Debt Plan
17,-
organization Sets Up Charter..,,,,,—
Economists' National Committee
Recommends
Enactment
on
19
Monetary Policy
Buffet Bill
of
14
17
Taxes^ved)
"_i_
__
We Must End "Creeping Munich," Says Hovde
21
22
Guaranty Trust €<h Sees Serious Shortage of Venture Capital 22'
World Bank Grants $16 Million Loan to Chile,
NAPA Survey Committee Reports High
With
24
Production, but
_i_l,-,L' 24
Declines More Pronounced
understood.
Our idea of the function of the SEC is that of
and not of creator of
terpretation,
laws for
not
new
laws whether
or new usages.
.
j
—
Regular Features
__-Cover
——
14
Bank and Insurance
Business Man's Bookshelf,
—,,
20
20
Canadian^
1
7-
Dealer-Bboker Investment Recommendations
Lea Fabrics
customer at
a
Einzig—A Western- European Currency Union?,18
From Washington- Ahead of the News—Carlisle Bargerpn,,- ; t •
Indications of Business Activity,,,
^
-V- ^
—
NSTA Nottes.,.,^—~ —-L.-—■,1^;
News About Banks and Bankers;
l.,—,——Zo
Our Reporter's
I
Governments,*—
Prospective Security Offerings,L
Our Reporter
Public
Report,
—5
—-47
_ _ ,
,
,
_ ,
25
,,,.'-46'
on
Utility
Securities,_T__
26
———
Railroad Securities
:
lo-
--—-—-
-
Securities Salesman's Corner,—
—
Securities Now in* Registration-., lw.
r-~
The State of Trade and Industry
current market in all cases."
5
Bank
$25 00
Reg. U. S. Patent Office
WILLIAM
B.
25 Par^
DANA
COMPANY, Publishers
HERBERT D.
9576
f
;
issue)
statistical
records,
•tate
RIGGS,
Thursday
▼ertising
plete
D.
(general
and
and
v
every
news,
city news,
Offices:
Chicago
bank clearings,
second-class
post
the
E.
C.,
Eng*
Subscription*
in
United".
Territories
at
of
Pan-Amgrican Union,
$35.00
New
;
WHitehall
St., New York 4, N. Y.
3-0272—Teletype NY 1.956
are
made
by dealers at their peril.
This is the
:,
:
f
V
.
:
funds.
:
<
Neither the doctrine of the first
i
"5%
BOUGHT
—-
SOLD
—
QUOTED
>
FIRST COLONY
'■\f: }In one sense,Mr. Loss is correct that the doctrine—
particularly when coupled with ; the "5 % spread philosophy"
of the NASD—has nothing to do with limiting profits.
/
Corporation
;
v:5
*
newly created doctrine of which the SEC
I
' f- .
boasts,
District Theatres
:
*
.Hughes case
nor
the
CORPORATION
52 Wall St.
New York 5^
Tel. HA 2-8080
N. Y.
Tele. NY 1-2425
spread philosophy'takes; into account the operating
costs and expenses
fiats in
a
of dealer-brokers. These
of price control which
program
but arbitrary
have decried
are
we
constantly and against which wie have inveighed editorially;
Although Mr. Loss speaks of the "5% yardstick"
brain-child of the Commission.
ifi
.'
,
.
.
V
■
-
as an
'
!
LAMBORN&CO.,Inc.
99
-
"
'
*
-
I *
'
point of
our
STREET
NEW YORK 5, N. Y.
;
We believe there is sound background for
WALL
*
'
«
When oral arguments took place before the SEC, on the
subject of whether or not the "5% yardstick" was a rule of
the NASD and should, therefore," have been submitted to
10$
SUGAR
Raw—Refined—Liquid
r
NASD
membership, for approval, counsel for a group of
security dealers from many states: in the Union hurled a
challenge at the members of the Commission who were sit¬
Exports—Imports—Futures
DIgby
4-2727
ting in judgment at the hearing.
on
f>age 29)*
COMPANY:
We are interested in offerings of
»
„
.
The Public National Etanls
Mtge. Guar. Co.
S.
of
year;
& Trust
High Grade Public Utility and Industrial
Lawyers Mortgage Co. '•
PREFERRED STOCKS
^
Company
of New York
«
Lawyers Title & Guar. Co.
V
N. Y. Title & Mtge.
Co.
Prudence Co.
7:
Members
TT.
fluctuations in
In
15 Broad
New •York- Stock
St., N.Y. 5
Bell
Teletype
New
25 Broa<I
Tel.:
York Stock Exchange
Street, New York 4
HAnover
T-2033
Members New York
Tel.: FINanclal 2330
Teletype—NY 1-5
Albany
-
Boston
-
Glens Falls
Curb Exchange
135 S. La Salle St., Chicago 3
2-4300
Exchange
WHifehall 4-6330
NY
Spencer Trask & Co.
Members
March
Members
per
the
remittances for for¬
Newburger, Loeb & Co.
States,
and
York
Members N. Y. Security Dealers Assn..
25 Broad
Analysis available
Subscription Rates
Possessions.
New
Bond &
'
matter Febru¬
office
Act
of
CERTIFICATES
.
as
in
TITLE
:
■
25, 1942, at the
N. Y., under
I. 1879.
7
account
exchange,
DUNNE & CO.
:
quotation
Copyright 1948 by William B. Dana
Company
...■''
Reentered
of
made
/*,,
land, c/o Edwards & Smith.
York„
Earnings Record — Monthly,
(Fdreign postage extra.)
Note—On
rate
Record—Monthly,
(Foreign, postage extra.)
eign subscriptions, and advertisements must
etc.).
ary
*
year.
per
;•
j; h What a disgusting mess! The securities industry is being
told, in effect, that sales made in the over-the-counter market
(Continued
and ad*
Monday (com¬
London,
per... year.
£42.00 per year,
Quotation
year.
per
Monthly
be
135
S.
La Salle
St.,
(Telephone: State 0613).;
3, HI.
Drapers' Gardens/
and
Sugar
Warren Brothers "C"
Manager
news
issue.—■ market
corporation
Othey
Business
Thursday, April 1, J94S
Every
i
$25.00
the
SEIKERT, Editor & Publisher
JVlLllAM DANA SEIBERT, President
WILLIAM
:
Place, Mew Yorkv
REctor 2-9570 to
$38.00,
Canada,
1/
4
Other. Publications
CHRONICLE
FINANCIAL
i
of
Dominion
Other Countries,
COMMERCIAL and
!
NASD product, we choose to regard it as an SEC baby, the
—
Twice Weekly
Pablished
many great cases,
Hughes casd left a number of questions unanswered."
question which in the nature-of things was
Left unanswered in the first Hughes case — and-which the
Commission, I would guess, is not likely to attempt to answer
—is precisely what spread is reasonable in relation to the
view.' '"
_
a
44
Says).—38
Washington and You,,,—•—-.,,',^,-4.-.,48
;
that; theory. But, like
Alegre Sugar
Susquehanna Mills
U. Si
22
Tomorrow's Markets (Walter Whyte
The
Punta
i
price
actually obtained criminal convictions of dealers in
cases on\
Teletype N. Y. 1-714
regulator
Mr. Loss takes the attitude that this doctrine has nothing
to do with limiting the amount of the dealer's
profit. The
logic of that claim is hard to follow.
\''
8
May,—,
Bell System
*
a
t
2-4500—120. Broadway
"Another
—
Wilfred
REctor
X-
the first
Observations—-A,
Established .1908
Members N. Y. Security Dealers Assn.
reasonably related to the current market price.
United Nation* Body Reports on 1947 Exchange Exhaustion,
Mutual' Funds
J.K.Rice,Jr.&Co.
by rule, judicial in¬
,
dealer to sell securities to
a
numberKof
Coming Events in the Investment FieldL,,
Haile Mines
.1. X Among other matters, Mr. Loss discussed the, first
Hughes- case holding it to be a fraud under the securities
Junior Investment Bankers and Brokers Assn. Report
Results of(Industry Questionnaire__,,,-i,^,w-~—26
27
American Overseas Airlines
...
have
24
$48 Million in February,——,
35
Frederick D. Gearft&rfc Jr;, Appointed Director of Lear, Inc., 40
I
.
,
Finishing; Com. & Pfd.
Southern Production Co.
,
Irish Free State Fond*■ Drawn for Redemption,—j
_
N. Y. Mutual' Savings Bank Report Deposits Gain of
■
there was,
and continues to be, a well defined
body of law, custom and
usage.ip the securities industry, in connection, with brokerdealer and customer
relationship*, whether that relationship
be on the basis of
acting as principal or as agent.
: "!
The laws
dealing with fraud were fixed' and clearly
f He said "The first Hughes case was a milestone in brokerdealer law, and the doctrine is now so well settled that we
As We See It (Editorial)
U. S.
Act which
Nal'l Industrial Conf. Board Reports "Further Clouding"" ;, t; *\ 1
of Foreign Trade Outlook by New Export Controls,
24
—
Dorset Fabrics (w.d.)
developed with reference to the duties of the broker-
14
New York Stock and Curb Exchange Employees Strike
Max Winkler Opp.oses
3
—
Treanor, Jr., Quits SEC Post.—
Profile*-and
23
■;^
(Editorial)A
Chase Bank Opens Third Branch in Germany,,
.:
,
Supply and Food Prices—Howard T. Cumming—____ 21
4-6551
compass
Long before the passage of > the Securities
created the Securities and
Exchange Commission,
Requirements for National Security—Arthur M. Hill_—17
The Budget of the United States~-James E. Webb--,,-,,-:—-.
Telephone: WHitehall
dealer and summarize their
present status."
>
We strongly resent the advent of the Commission in the
role of doctrinaire.
".■^
:
;
15
.
STREET, NEW YORK
*
4
Outlining the
*
has
13
Steps Toward Easing European Intra-Continental Exchange
—Ernest H.
Weinwurm__j_
Economic
'■
Obsolete Securities Dept.
99 WALL
,
-
?
4'_
Sfehenectady
•
-
Worcester
C. E.
on
request
Unterberg & Co.
Members N.
Y. Security Dealers
61 Broadway, New York
Ass'n'
6, N. Yr.
Telephone BOwling Green 9-3565
Teletype NY 1-1666
'
r
,
I
&
THE COMMERCIAL
(1420)
CHRONICLE
FINANCIAL
Prices After Two Wars
Sobering Realities
Regarding Tax Burdens
f
By JULES BACKMAN*
r
V
York University
Associate Professor of Economics, New
Thursday, April 1, 1948
After explaining background
does
indicate
not
of postwar price rises, Dr. Backroan contends recent decline in food prices
inflationary pressures hare been eliminated. Points out differences in price
basic
By EDMOND E. LINCOLN
Dr. Lincoln
with those following World War I, and contends government and not businessmen
responsible for high prices. Sees little possibility of impending break in general level of prices.
conditions
are
at
present
f
n
% v
t
a
n
t
o r,
1
e
u
—
y
,
'
dealt
have
higher
prices.
In
^discussions of
ments
income from
has
been >
woeful
of
Two
events
recent
prices
above
illus-
esting
pressure
was
of
this
in living costs has been
to the rise in food prices.
due
two-thirds
About
ing the significance of the decline
in farm and food prices since the
the cost of steel,-'
January peaks.
It
must
a
the
price
level
without • much
emphasis being given to the im¬
rise since last June.
mediately preceding rapid rise in
'hese
prices
to the reversal of
or
forces
the
causing that earlier
Today, I would like to
rise.
paint the backdrop against which
price changes must be evaluated.
Recent Changes in Prices
The rise in
the
of
three
war
be
divided
into
phases.
First, there was the
sharp rise attending the modifica¬
tion and
then
OPA
1946.
The
official
price
index
rose
in
sumers'
the
termination
about
15% in 1946 with most of the rise
taking place in the latter part of
the year.
a
This
period
of
was
followed
by
relative
for
most
improved outlook
grain
crops,
the
of
the
price
I refer to the
for
our
own
reported
im¬
and
the development of a larger grain
export surplus in Argentina and
Australia than had been antici¬
provement in European crops,
last
Fall
fell
the amount
in
resulted in
-
a
further
rise
j
(1) The sharp reduction in
domestic corn crop.
Until
a
of
grairi
been hoped that the corn
total
three
billion'
would
bushels.
crop
However, the
deteriorated
harvest
els.
was
rap¬
final
This lost 600 million bushels
crucial
a
newed
was
crop
the
and
onlv 2.4 billion bush¬
was
price
factor
rise
in
after
the
re¬
June.
It
particularly important
because
of
namely:
the
-
second
factor,
;
(2) The
Europe.
*An
grain crop failure in
This development led to
address
before the
by
Dr.
Backman
Citv Club, Cleveland,
O., March 27, 1948.
ever
the price level outruns these
been
picture has
food
accompa¬
nied by a sharp decline in those
prices.
Depending upon the in¬
dex
wholesale
used,
prices
middle of January to
the middle
made
more
postwar experiences.
that
can
be
which helped to contribute to the
rise in prices from i June, 1947, to
..
On-the contrary,
additional. wage
have
increases
taken
place in some industries and
widespread demands for
still higher wages by many unions.
are
Similarly,' although
there
moderate reversal
of
has
the
large wartime Federal budgetary
deficits which represent the basic
price in¬
budgetary surpluses
inflationary
Grinnell Corporation
Portsmouth Steel
:
Carey (Philip) Mfg.
'Prospectus
on
-
Quoted
M+mhcrs N. Y. Stock Exchange and Other
Principal Exchanges
incomes
same
:i As
of
the
Federal,
ments
state
estates.
or
present
time,
local
and
our
govern¬
extraordinary
many
estimated
national income
the method of calcu¬
on
In
such
roads, schools,
supply, etc.
Also,
as
water
wages and salaries of Civil Serv¬
ice -employees
have
almost
doubled over the past 10
years.
Looking back
find
we
that
105 West Adams Si. Chicaro
Teletype NY 1-672
of
periods
Second World
It is
past
fact
a
for
the
as
high
the^e
previous
periods,
and postwar
prices showed
war
wholesale
the following advances:
*7
in
1811
7
1814).
to
154.6
in
1929-1930,
War
1
—
'
<
(from
.
holding
state
and
to
(from 1939
January1948).
Each
of
the
three
earlier
ad¬
followed by very sharp
By 1816 the wholesale
price level was lower than it had
vances was
declines.
been in 1811.:
104.9).
7
Estimated
1929-1930
132
the
1865
in
to
97.7
to
index
by
84
about
the
Ratio
when
Total
of
de¬
aver¬
70's.
v;::'-vV'-1 "■
'■',s
r
the
peak
Canada
.7
•
—-
United Kingdom——-
few
May
1920
.7
- —-w.*---
——
——--4
or
more
17
communist
;
and
totalitarian
18 years ago were
or
at
22%
the
of
Germany,
national
little
a
income;
than
more
all
are
these
21%;
countries
now? Bankrupt or totalitarian!
For
long years
experts
and
writers
on public finance, based
the historical
records, have as¬
on
that
endure
nation
no
and
be
free, with taxes
of the national
could
long
and
prosperous
high
as
income.
25%.
as
Further,
*
12.7
13.3
7
16.4
18.8
reasonable
What
.^7 21.2
Uruguay
16.0
..
.7^.
18.0
..
,77714.5
——
25.0
19.5
20.0
..
-
.
Finland
.-714.1
More
than
21/fe .*: years
have
,7
16.0
Ipt
elapsed since VJ-Day, and prices, 'Cuba
25.6
with some exceptions, are still
11.4
at) Porto Rico
postwar peak levels. A peak level/ Hungary
17.0
of this duration is in sharp con7 Union of South Africa—.
22.1
trast to the experience after the
Roumanian————— ..12.7
earlier wars. Prices declined soon Yugoslavia
.77 12.7
;
the
America,
unless
our
to
point
a
1
we
hap-
course,
United
taxes and
States
of
cut
our
soon
public expenditures
where
the
over-all
"take" will be not
more than 15%
-20% of the national income pro¬
duced in years of normally
good,
but
not
"inflated,"
business
tivity? 77v
It
is
that
a
18.2
..
extended pe¬
will, in due
to
en
,—
an
headed for trouble. '-
22.0
..
over
riod; and any country with a ratio
exceeding 20% seemed definitely
..13.4
—
reached, to
Irish Free State
prices Austria
During
Chile
r.ithe 20's they remained at a level
Czechoslovakia
prewar.
Ail
>
..716.8
..
Belgium
Spain
j
—
Sweden
France
backward
more
ratio exceeding 15% was for¬
.77721.9 C7
merly considered too high to be
~
-
the
of
levied taxes up to 25%l
on their national income,
7
any
Norway-
the
r *
of
20.7
wholesale
above
A
our
'::7r»7'
countries
Where
11.0%
17-
—
Argentina
scarcely 11%,
one-third
next, at 27.5%. Other very im¬
portant high-tax countries some:
New Zealand;,...^..*-*, ..17.8
Netherlands
was
than
more
was
11.6
cut almost in half.
about 40%
little
present ratio.
sumed
-
just before
was
1922,
States the ratio
or
countries.
same
time, in the United
same
present United States rate! Greece
to Income
Country—
Germany
I—From
the
The
% of Taxes
United States—...
the
\,
War
January
were
Taxes
b;Kinds
to
Estimated National"
;7' Income Produced
above
Civil War.
World
had
early
33%
prevailing
peak of
1868 and
in
At
world
than 15%
national income
more
state of Russia headed the list at
about 29%, or slightly under the
v
...
Denmark
was a
estimated
50 lead¬
the
of the World: and Great
Britain, just under 21%.
Countries
Australia;
(1816—103.5; 1811— Switzerland
Civil War—There
col¬
stubbornly, while
government taxes
up
local
1
World War II—115%
the taxes
as
i.e., for fiscal 1947
close to $45,000,000,000, as com¬
pared with around $11,000,000,000.
are
the
weighted
by all gov¬
some
of
produced by those
our
four
governments,
Leading
145.5%
1920).
about
amount
.
the
countries
France,
War—116%; (60.9 in 1861
to 132 in 1865). •
World
Now,
lected by all of our state and local
Civil
1914 to May
did
as
I 7 Federal tax rates and collections
War of 1812—About 50%" (104.9,
1926=100,
much
of peace,
y.ear
times
were
as
Government is collecting
Federal
fol¬
three of which
lowed
state and
our
Government.
third
by very sharp price de¬
clines: The War of 1812, the Civil
War and World War I.
During
peaks,
the
governments ^ collected :: in
Federal
our
War,
before
-
few short years,the prosperous
a
in
ernmental bodies in
.
.
,
normal
need for
improvements and fa¬
new
cilities,
pop¬
during the present
decade, and the resultant
are
an
1
ac¬
..
;
7v
not
commonly understood
very mild and to-be-ex¬
pected decline
of
15%
in indus¬
.———.
trial production, and of
..
—
in
our
only 15%
price level, which has
more
..
—
—
..
after
the
1812
and
reached
ending
the
their
World
had
War
War
of
and
Japan (Proper).——
Costa Rica
months
Greece
Poland
18
the
31st
Armistice
month
in
No¬
vember
—
Algeria
Colombia
completed.
Egypt
Russia
never
has
been
slow
a
or
gradual decline from these strato¬
spheric heights. Only time will
if we
are
this time.
to
;,
reverse
7.
history
•
„,
17.8
——i.—
..
7:23.8
..'17.5
15.8
..
—i
23.7
..
—
.
14.7
..
-716.4
Salvador"
Brazil
17.9
-
-7
Philippine Islands
Mexico
—
Guatemala
1
8.0
26.5
„
15.3
-
—
Bolivia
Consumers' prices showed sim¬
trends although the magni¬
,
15.7
-
ilar
tude of the
20.5
..
..
——
Moreover, these earlier postwar Peru
Portugal
were; quite precipitous.
We cannot ignore the fact that Bulgaria
16.4
..
..
—
(U.S.S.R.)— -77-
declines
27.5
-
—
——
1918, a major part of the
postwar price deflation had been
there
..722.4
—-———--.I—-.
Venezuela
16.7
..
—
By the time
peak
War I.
the
the
of
Civil
reached
following
Request
Goodbody & Co.
of
chart of prices going back
shows
four
very
high
a
tell
115 Broadway. New York
IVUfflMMt, BAtcIapr 7-0100
the
in
Texas Eastern Trans *
Sold
the foregoing
because of the
ulation growth
points resulting from state taxes I sewers,
on
taxes
Tenn. Gas & Electric
-
Bought
:
1800
to
favorable.
Moreover, there has been no re¬
versal
of
the
wage
increases
Ame'ican Hardware
taxed
are
there is in many cases
local
level
of
corporate
addition of several percentage
taxes around twice
examination
an
crops.
knbw the size of
creases, such
an
all of
around
was
cause
top rates
77%;
$50,000
Many attempts to appraise the
ouUook for prices have centered
This
a
To
lation).
Past Postwar Periods
do not
been
38%.
is
over
amounted to little
kreep in mind that
there
credits
somewhat
82
January, 1948.
before
inflation is still with
aged
or
collecting taxes at the following rates on the higher brackets:
Individual
incomes,
a r o u n d<£
86¥j% beginning at $200,000 (and are bound to increase
rapidly for
50.35% at only $18,000); the top the next'
few
*
years,v because of
Federal tax bracket on net estates
shifts in population as well as
ing
us.
all
our
"produced" in 1947 ($185,000,000,000 to $200,000,000,000 depending
I am not at¬
.
from
states have not yet imposed personal income
Yet for the third year of peace,.our Federal
Government alone
taxes.
period
clined
we still
the 1948
free
now
average taxes collected
mean
to
In
evaluating the significance
of'This decline it is important to
reversed
even
of the
we
Detroit Harvester
it
does
are
forecast ; the imme¬
diate outlook for prices.
I am
emphasizing that the underlying
after
.
Nor
estates
collecting around $56,000,000,000 annually in taxes of
all kinds, or roughly close to 30%
of
foods fell from 7 to 15% from the
have thus far been very moderate
Art Metal Construction
forces.
tempting
on
This reversal in the
year ago.
June, Tftie recent developments
it had
idly
our
infla¬
pressure does not mean
prices cannot decline-when¬
stratospheric levels.
the
farm is reported to be larger than
and
stability in of February, Since the middle of
prices in the first half February these prices have been
Many students of prices relatively stable.
Up until the
were in
agreement that the price middle of' February retail food
level
then
prevailing reflected prices declined about 2 ¥2% with
adequately the? underlying infla¬
only moderate changes since that
tion and that the immediate
post¬ time.
Largely as a result of this
war peak
nrobably had been decline in food prices, the official
reached.
Then, in the Summer consumers'
price
index
turned
of 1947, there were three events
down 1.3 in February.
V ^
living costs to new high levels
January of 1948. I refer to: j
this
of
add
that
basic
expectations
below
consumers'
in
to
that prices must move up to new
of 1947.
which
hasten
me
existence
the
a
accounted
of
con¬
Let
in food and farm
pated earlier.
In addition, the
quantity of grain fed to livestock
;
prices since the end
may
large extent, this decline
prices reflected
reversal of the factors which
To
Several of
and
is
at
inflationary pressures have
eliminated or significantly
incomes
;7 7;.'*
,
February decline in grain prices
widely heralded as the be¬
ginning of a postwar collapse in
was
taxation.
small
basic
tionary
background
Many
free1
our
enterprise system.
net incomes
that
,
4
underlying the recent price
modified.
which
be kept in mind in apprais¬
this
is
bracket well below 50% must be
adopted to maintain
:
declines does not indicate that the
been
than 25%
prevailing under
as
inflationary even though steel
prices previously had risen sub¬
stantially less than had other
prices and even though the rise in
question added less than 1% to
Similiarly, the
forces
more
level
rise
denounced
was
create
and
the
OPA.
A
trat'ons.
rise in steel
however,
inter¬
furnish
consequent net increase in total
deposits and money in circula¬
tion. *
Thus, an appraisel of the
prices from 157 in June, 1947, to
168.7 in January, 1948—a rise of
about llk%.
The January level,
perspec-
tive.
Jules Backtnan
a
lack
:
has been an expansion in bank
credit for business loans with the
budgetary surplus, however, there
upon
.$200 to $159 billion, and points out in depression or
expenditures tend to increase. Holds top tax
government
,
higher prices.
This was particularly important for railroads, coal
and steel since increases in those
other
adversity,
m
the entire price structure.
; .• The
impact
of these forces
raised, the
level' of consumers'
there
„
1
contrast to the accumulated
! deficits. .As against the decline in
inflationary pressure due to this
the
"
77
greater demand upon our reduced supplies.
(3) The second round wage increases
which inevitably meant
prices act and interact one upon
these develop-
>
"
~7~
7
~
■
a
most
of
the
headlines
7 until recently
7 with
'
:
high portion of national income consumed by '
to low living standards of many
Foresees possibility of drop in U. S. national
eventually lead U. S.
European nations.
continuously since the end of the war., Higher
living costs, higher steel prices, gray market prices for automobiles, rising building prices,
collapsing grain prices—these and many other headlines have becoihe familiar to all of us.
Prices have been front page news
7
will
taxes
warns
Ecuador
British
19.0
—
India
—
_.
-
.
/
20.0
17.0
rise, and in turn the
(Continued
on page
28)
.
than
15.4%
since
1940,
would
probably lead to a 25%-30% drop
in our national income produced.
We
all
for
should, in fact, in the light of
past experience, be prepared
a
much
sharper drop within
the next few years, on our present
monetary standard.
At any rate, it would not be
surprising to see our present na¬
tional income
(according to recent
computations)
drop
"adjusted"
from
a
current level
approaching
$200,000,000,000 per annum to a
some
place between $125,000,000.000
and
$150,000,000,000.
level
Even
the
decline
income
extreme
would
at
higher than
our history.
It
low
leave
point
a
any
of
such
fully
25%
pre-war year
.
.
a
national
our
in
• •
should further be noted that,
in times of depression or advers-
ity,
Average of 48 Countries
doubled
public
expenditures,
(Continued
on page
.
under
26)
.
Volume 167
Number 4686
THE COMMERCIAL
&
FINANCIAL CHRONICLE
(1421)
5
(r
Steel
1
Production
Electric Output
-
New York
.
Ciiy Office
Carloadingt
of Trade
*
'
.
r'
Industry
i
Failuree
,
!
'
..
'
•
/
Speedy settlement
last
week
and
imposed in
.
1 situation
remain
1
-■
:■■■■■■-
restrictions
unaltered the
railroad
on
fuel.
conserve
\
■
of the bituminous coal strike
further
order to
•-
'7,
~
t""Justifiably
-
;
,
cations.
current
week
appeared remote
electorates.
*
/•
V
Th? total effects stemming from the action of the soft coal miners
^eayinS the pits may prove to be si very grave blow to our national
-
7
According to the
falling under the
the mine tieup continue for
oossibiiity ingot output may
economy.
tions
*.
magazine "Steel,'*'"steelmaking bperaimpact of the coal strike, and should
are
another
two
weeks there
is
a
distinct
week
■
•
In
terms
of
of the strike
the
week
S.
Bureau
Mines
as
a
in
20, 1948 dropped to 4,360,000 tons from
the previous week, or a decline of about
67%. >
in
'v"7>7
interest
*
' '■
*
y,'vy-,7 Y ;>7 '
7V77/,:
* "
to
a
few
' ' .77 7'Y'' 7 •,
the Council's doings
7
nificance/Hence
to
we
tained, an qffke
Sail
in
gerties, NV Y ..
for
sever
y e a r s.
|
:BJU .
Hunter has re
cently beei
Y
7777 acting as Vide
Wellington Hunter /
.*
•'
,
7-Y
Pre Si den t
i
:
ties Corporation;'
McDonnell
•
o
' Aetna Securi7 7 7/;
on
'
x
as
Partner
Peter
Morgan & Co., 31 Nassau
Street, New York City, announce
that John R. McDonnell has been
admitted
as
the firm.
Mr. McDonnell has been
general partner in
a
with the firm
shall confine this discussion to the latter.
many taxpayers was the action taken by
Monday and the House on Wednesday of last 77The Legislative Set-up
V'v
y week in
approving income tax reductions by margins sufficiently
First let it be understood that, under the Employment Act
of
./large to overcome the expected veto by President Truman.
The
1946 the President himself (and not the Council) is charged with
Present-W act on the measure before the deadline on April 5, submitting an economic report to the Congress within 60 days aftei
SSr
k1 %
become a ;;law without his signature, the beginning of each regular session. This document, called "The
lne beneiits that will accrue
to the taxpayer
by the measure becom- Economic Report," setting forth the levels and trend of
employment
jng a law will in turn result in an estimated loss of
$4,800,000,000 production and purchasing power in relation to the stated
goal ol
in revenue tc the
government.
.;v
full employment; a review of the relevant economic program of the
^fr?* taxation, w:ith the passing of March 15, government; and legislative recommendations; when submitted to
vthe final day for fihng Federal income tax
returns, it is found that Congress is
immediately referred to its especially-established Joint
the U. S. .Senate
/
7
the govern¬
,";,V
May
42
issue; privately
of
Discussion
of
in the
phase of ideology and economic theory—that is,
the "substantive" content of its reports—could not possibly be con¬
fined to the maximum length of an article. Moreover the unique
"procedural" phases of the Council-^-that is, its status and manner
of functioning in the community—are harboring far
greater sig¬
result
reoorts that production
Indicators"
at
Broadway
and has main¬
/
elite.
ment
A. Wilfred
March
;777'.y77
Of great
of
"Economic
y-k'j 777777
tonnage of bituminous coal losses
the U.
ended
13,314,000 tons
7
yY'
total
,
announcement of its intention to
drop below 60% of capacity.", For the
beginning March 22, 1948, the scheduled operating Tate of
steel companies
having 94% of the steel-making capacity of the
industry was 95.7% of capacity.
/
located
is
it
\~y;' '•/.,<\71 *77 ■'
7 : There is constant evidence of. the almost
unanimous confusion of our, public over this
body's legal status and functioning.
This of
course
has not been lessened by such current
happenings as the Council's verdict pronounced
on the highly-controversial price adjustment by
the steel industry, or by this week's reported
strike
steel producers
many
previously was
reported that the
body's economic pronouncements, voiced directly
or
through the President,. have recently been
exercising the most marked effect oil European
transportation. weTe
coal
abroad
York
City. The firm
or
From
Broadway;
New
unjustifiably, clothed its activities*
with far-reaching political and economic impli¬
7 7J 7
i.
Should the national
be forced to shut down their mills.
may
.
v
!
setback to total
output, however, was slight and many indus¬
to operate at a level
moderately above that of a
••
50
not be
may
as
continued
ago.
Econonfte Advisers
Council of
Truman's
much spoofing as did the Frankfurter-generated Brains
Trusts which operated under President Roosevelt, but its implicaT
tions are far more important.
Domestically its official status has,
:Y
.Labor-management disputes and difficulties encountered in ob¬
taining adequate supplies of some materials worked to hold down
industrial production the
past week.
(Hunter & Co.
BRAINS TRUSTING—1948 STYLE
President
an¬
New
a
York office for
Auto Production
inciting
.year
reopening of
By A. WILFRED MAY
Food Price Index
Buelaees
iVT
tries
the
nounces
Commodity Price Index
I
,
and
Wellington "Dukc" Hunter
^'Retail Trade
.
,
head .of the trad¬
as
ing department.
New Ira
;.,
:
7
Haupt Phone
7
Ira Haupt &
Co., Ill Broadway,
City, members of the
York
New
York
New
Stock
that
nounce
the
Exchange, an¬
telephone num¬
ber of their main office has been
.
2k 9ure2
yl!
2s!?ess actlvlty an4 a record national income Committee on the Economic Report. /This Congressional Committee
soared beyond $7,000,- jS cnarged with studying the various matters contained therein, with
uOtbuOO^ an all-time record figure. The flow of income tax payments recommending the means of
coordinating programs, and with guiding
since March 15 accounted for the new
v
+
«nn
/
II
i
peak.
I''"''..••"I'
*
*
the Congress.
*
\
v
M
Considerable rise in retail volume occurred in most sections of
the country during the week as consumers rushed
to complete their
pre-Easter shopping. Total dollar volume in the
II
period ended on
;-'-H
V Wednesday of
lastjweek. was slightly above that of a year ago, with
71
unit volume
fractionally under that of the corresponding week in
77
3947.
Resistance to high prices and poor
/ '1
quality continued to be
•
/
,
•
'
Strong.;
■
',;'7 ''■V
A
-
usual
long-
term commitments,
The
v
this
coal
STRIKE
strike
steel
1
loss
current
of
steel
In the
event
John
L.
with
rigid
after
his
the
80
miners
days
~
return
to
would
come
just
about
work
Federal
a
the
soon,
-
v;.?(
of
time
the
The end of
the
present
the
80-day period
officially
pact
to
do
steel,
in
consumers
the
third
this year is only now sinking into the minds of those
who had laid ambitious plans to turn their backlogs into
/ finished manufactured products.!
Marshall Plan requirements, the
probability
of
a
record
of the President's
peacetime
defense
together
program
the
and
drum-beating by the oil industry for much needed
large
steel must
it the NAM
various
at
times
:
Francisco
MAD!
IN
CANADIAN
SECURITIES
'
^
Canadian Pacific
the "Daily
consultedv Lor^l
are
The
/
Imperial Oil, Ltd.
International Petroleum
HART SMITH & GO
7'
152 WILLIAM ST., N. Y. 5 HAnorer 2-MM
,
Bell Teletype NY 1-305
New York
Montreal
.
Toronto
or
Political
Implications
r
/
the very great suspicion that the Council can
:
easily be used as a device to further political aims; as another
means of milking the
respectability of the economics profession
to propagandize the
electorate, and of supplying impressive windowdressing for political aims.
7 •7;/:/''"'
.7/1'
i
facile
Defenders of the Council's raison d'etre maintain that it fills the
mechanism
a
Rwy.
or
whether perhaps the President and the
expounding jointly-held theories.
7 !
moreover
need for
Stock
<
too
>
CALIF.—
is
notions,
.1
There is
coal
be
San
y
confusing the nation as to whether
^e
President is merely transmitting fool-pioof facts from a
group ,cjf
scientific experts, whether the Council is functioning as a rationalizer
alleged
What the coal strike will
scale
Roosevelt
,
AMERICAN
Freedom of Consultation
Keynes, the warbling Tom Corcoran, Joseph P. Kennedy, John Lewis
Hull, Sumner Welles, Isador Lubin,; Mayor Hague, B. M
Baruch, etc., etc., etc., but the opinions and suggested policies which
he uttered were as his own, standing on his own two feet of re¬
sponsibility.
7
: At the present time, on the other hand, the set-up of our n^w
'
quarter of
,
and
MARKETS
Cordell
of
y users
.
President
Cwontcle)
Exchanges.
vlt assuredly is beyond criticism for the President of the Unitec
States to get economic information and opinions to whatever extent
injunc-
threat
period required under; the
agreement, the coal miners could
long as their leader ordered them
ends, thp magazine notes.
,
which
non-striking
Law there is no
walk out again and stay out as
to without government interference.
7
York
recommending and developing national economic policies, with
furnishing reports definitely requested by-the President, and with
making a report to the President annually,
y
.
Financim,
joined the staff
of Schwabacher & Co., 600 Mar¬
ket Street,;- members of the New
nomic information, with appraising the Federal Government's; own
programs and activities in the light of their employment-stimulatiop,
President Always Has
The
to
FRANCISCO,
Robert Wilber has
.
Additionally the statute creates m the Executive Office of the
Council of Economic Advisers" of three members ap¬
pointed by the President, and subject to confirmation by the Senate.
These individuals are charged with assisting the President in the
preparation of his above-cited Report, with gathering timely eco¬
Council
Lewis should heed
another strike still confronts the industry.
have
losses
allocations
certain.
seem
;.
and
Taft-Hartley
t
additional
government
tion
'
.
along
make
/
If
■■■
statutory Brains Trust
similar to wartime controls
:i ;
If 7
:,fl
President "a
Worker."
has
will result from the strike
7/
7
:■
year.
The
7
.
;
■,!y,
T"-1/"
v/
89.4% OF CAPACITY
seriously crippled the steel industry and
it is now doubtful that the
industry will better last year's steel
production of 85 million tons, states "The Iron
Age," national metalworking weekly, in its current report on the steel industry.
It
had been hoped that close to 90 million
tons would be produced
;
,
/--V'-•
OUTPUT AT
DUE TO COAL
:
.
^
and from whatever sources he wishes,
STEEL
-
;.
(Special
SAN
with
pre-holiday drop in new order volume reduced total
wholesale volume moderately
during the week, though dollar volume
was very close to the
high level of a year ago. Re-orders of Spring
merchandise continued to be numerous.
Buyers remained priceconscious and were hesitant in!
regard to large orders and
■'
Schwabacher Co. Adds
.
surplus of the government has
•
7Y7'7V:7 f';
,
changed to WQrth 4-6000.
by which the various government
authoritatively reviewed.
; ;
actions and programs can be
77 No one should think of any economist as an objective individual
issuing factual words of wisdom from an ivory tower. But economic
thinking can at least be free from political coloration of its indi-
,77': 7 77777;'77-:' ^ - (Continued
on page
37)77--- 7 >.7;'
-Vl,"
(*K
■
ALBERT FRANK-
GUENTHERLAW
Incorporated
7
77
aU; be considered in coping with the problem of steel demand.
'
,
"
7:
are
In the face of all this, government officials in high
places
assuming that rigid controls over steel output and distribu-; 1
771777;; ' Time Inc. :-777''>7'.....
;y Zition are necessary, according to "The Iron Age."
iI"-ijlrv.They figured that ERP could
-
time
the
fashion,
but
the
President's
be
handled
message
on
in normal peacedefense needs and
coal
strike, changed all that thinking.
Some top
privately expect strict government controls before the
.
ii
(
At
the
present
moment
various
defense
for
agencies
steel
year
are
heads
is out.
Dravo
,
'
.
t
\
,
,
'
'
also
stepped
in
with
the
alloy
steel
'The
order
bar
*4
result
of
/
.
.
;
•
<
'-*
...
•
P.'
outlook.
FREDERIC N. HATCH & CO- INC.
,
current
vdlUhih/ the magazine
•
defense
inquiries
concludes,
(Continued
and
has led
on page
33)
probable
several
131 Cedar
Street, New York 6
future
large steel
Boston
Chicago
*
~
.
Bought—Sold—Quoted
inquiries
which will bring to a new
Deliveries on this product
were three to four weeks
early this year, this trade authority points
out, but promises today run from three to four months.
tautness
,
(
Advertising
Corp.
American Maize Products Co.
■
r
inquiring
large quantities of steel products.
These orders will mean less
plates, pipe and bars for domestic steel fabricators. Aircraft makers
have
7/7
7
,
v
members N.
Established 1888
y.
security
63 Wall Street, New York 5, N. Y.
dealers
association
Bell Teletype NY 1-S97
Philadelphia
San Francisco
6
THE COMMERCIAL
(1422)
'
CHRONICLE
FINANCIAL
&
Thursday, April 1, 1948
Who Killed Cock ^RoWh% Jrftv Gold and Our
By
THEODORE PRINCE,,- L.LM.*
-V
-1-
/ President, The Equitable Life Assurance Society of
Economist and Investment
Counsel, pointing out decline in demand for equity securities m face of V
heavy industrial capital requirements, lays much of blame for ibis condition to severe stock margin
requirements of Federal Reserve Board. Holds margin restrictions, by reducing available equity
capital lp business corporations, is an inflationary fforce.
.va.V;-;
,•
the
begin-
ning."
i
With
the
which
we
be¬
now
which
the
business
hrough equity capital./ It should
?e
i
m
it.
i
n
It
s-
may
ability of our 412,000
.corporations to secure
noted
Industrial Capital
Equities
increased invest¬
equities for the
capital
these
omist,
Prince
investment
is
for
econ¬
counsel
lawyer specializing in
practices and taxes and
circle
an
and
corporate
a
financial
figure for 30 years, and
20
head
years
Exchange (firm
of
the
which
was
Stock
bore; his,
name.—Editor.
-
B
&
Boston
&
Maine
Prior Preferred
RR.
of
than
the
the particular
Federal Street, Boston
from
secured
a
in
1938 these corpo¬
and
dividends
and' had
of $20 billion.
deficit
a
From 1939 through
dividends
paid were $42.7
aillion out of $88.9 billion
earned,
after
taxes, leaving $46.2 billion
surplus which has yet to meet
the impact of inventory losses and
as
decline
future
of
profits.
inventory
the $17 billion
Thus, of
of ^reported
1947
corporation
less
no
than
"profits"
J5 billion
in
the
"Cash/ and
billion"
cut
were
while
;
Government
down
$19
by $10
billion
was
necessary
"to carry inventories
and accounts receivable."
"The
$11 billion growth in net working
capital reflects primarily an ab¬
sorption of reinvested earnings
V
The
growiing i need for
is indicated by the
funds
tional
Product
at
the
Capital
Product
Ex
Expenditures
90
1940..
/
1941..
1942..
160
:
1943..
1944..
211;,;.;,
1945..
1947..
0.2.
The
*17.0.
>
of
1946
to
in
37%
*
the
of
case
Auto-Lite; from
and
of ( bank
Union
aggregate
million in 1946
1947.
for
arrange
for
for
^
phase to the
$502
'
'
<
,
INVESTMENT
SECURITIES
V
This
509 OLIVE STREET
-
;V
increase
proceeding at
pears
There
St.LouisLMo.
Street, Boston
/
'
Members St. Louis Stock
Telephone—-
Xxchang*
REctor 2-5035
billion
in
crease
$7
billion
$22
1939
which
to
American Air Filter
Consider H. Willett
NORTHWEST MINING
For
or
of
Murphy Chair Company
Immediate Execution of Orders
Quotes call TWX Sp-43 on Floor
Exchange
A.M.,
Pac.
other
hours.
from
Std.
10:45
Time:
to
11:30
Sp-62
"
Co.
at
.TV
STANDARD SECURITIES
™i BANKERS BOND HE
CORPORATION
Members Standard
of
*
Incorporated
l»t Floor,
Kentucky Home Life BIdg.
LOUISVILLE 2, KENTUCKY
Bell Tele. LS 186
Brokers
-
Stock
Exchange
Spokane
Dealers
-
Underwriters
Peyton Building, Spokane
Branches at
Kellogg, Idaho
and
Yakima, Wn.
and ,itc
Jhe Treasury'.6
bank balance.
Wouldn't it be n'cc
to
buy
be
able
to
check
a
on
a
refrigerator
bank
your
the
and/write
bank
.ac¬
that
you
count?
■
This all.
means
//;///■/■,///
that the
.
*•'
Treas¬
ury
and
has paid nothing for the gold,
has
a
that
lion
the
British Government
bank deposit
in
banks.
our
for $100 mil¬
The
most
bonds. The
ends in its ignominious burial
instances 40^ investment in
supply of public funds
for investment in
equities is also
Fort
prevailing high income
double
taxation
i of
dividends and the high cost of liv¬
ing. As a result of these circum¬
stances,
plus
financial
policy
ment
in
issues
at
we
the
every
are
selling
than 3%,
as
times
the
vailed
in
a
gap
of
difference
to
be
be
over
farm
on
sent
after what
us
suppose
draws
as
on
a
that Great Brit¬
its bank account
result of the sale
gold. At this time, it would
May, 1946. Again,
(Continued on page 29)
further
a
deposits
of
increase
in
approximately
$400 million.
This
further
money
fact
that
$80
addition
supply
the
results
bank
million of
loans
can
excess
for
to
quired
to
the
use
to
reserves
which
it
deposits for which
new
our
-from/ the
creates
it is
re¬
place with the Federal
Reserve
enjy approximately 20%
legal reserve—the $80 million be¬
comes the legal reserves for
an-,/;
other
$400
million.
well-known
Reserve
The
banking.
net
This
'
"5-for-l"
is
the
Federal
of
:
•
^
^
result is
that the pur¬
chase of $100 million of gold has
actually increased bank deposits.
by $100 million and, at the same
time, has supplied -the source of
another
million
$400
increase
of
.in .our money supply.
these bank deposits
Ani all of /
can
the
at
option of the depositor be turned
into Federal Reserve Bank notes.
This is
our managed
aged currency! :; \"
It is difficult for
in gold
to believe
base
for
mis-man¬
or
-./vi'
; '
as
*
who used
one
the soundest
currency
to .realize
it
that
has
been
now
no
pre¬
■
the
1
additional
of
paper
deposit
or
money.
And what makes this even more
striking is the fact that it is not
at all necessary that this great
volume of paper money should
result from our purchase of gold.
We could purchase' that gold, if
we wanted it badly enough, with¬
out
>th:s
incidental
ih
increase
supply.
money
What
do instead is, through
we
the
manipulation of bookkeepers
and the so-called managers of our
economy,
which
bastard
create
have
dollars
with
connection
no
existing business relations Or. ac- V
tivity and which circulate through
rency
and reducing the
purchas¬
ing value of our dollar.
further
all
rise
bemoan.
in
prices
V
Hence
which
"
v
a
we
4;
probable that the money
go
to
pay
for trucks .and
machinery which would be
out -of
the
country to Great
three
which
in
bank
the country adulterating our cur¬
buried.
more
would
to
Perhaps
at
through, it deserves
gone
now
of the
con¬
trasted with the yield of 5.75%
equities,
has
established
artificially high prices,
more
it
inflationary ain
of the Govern¬
supporting government
description
no
Knox.
Let
find that high grade bonds of
yield
result
banking system,
probably would
and
huge, jquantity
money,
to
gold has
not deDleted the Treasury's bank
funds, and the curious transaction
the
the
could
reduced to the .point where it is
$38
1947.
taxes,
and
ar.
have the refrigerator
please restore its cost to your ac¬
1947, and of this in¬
billion took place in
limited by
SECURITIES
in
reserves
tificate—hb, not actually
since
bank
of
rose
with
and the most
reliable security for future values
count
ap¬
high rate.
life insurance companies and mu¬
tual savings banks is limited in
SPOKANE, WASH.
American Turf Ass'n
in
a
million
the
with
time.
loans
have developed
we
amount is added
The large supply of capital from
LOUISVILLE
Varnish
were
loans
future
bank
deposit./; "1
gold .certificate/is
consequences
some
$100
circumstances
depression should
of
that
keeping entry to the effect thai
or
dismal
bank
a
the' /
"J
of
longer /money
itself; it no
longer backs -up that which we
justify its issue— use for money; and worse than
and thereupon, the Federal
Re-; all this, in its progress from the
serve -Bank restores the Treasury's
foreign seller to its cemetery in
deposit as it was before the gold Fort Knox, it has produced and
purchase check was issued. The left to circulate a
urgency
is supplied
a
Federal
even tc
issue it, but just to make a book¬
•
deposits is infla¬
new
to
the
Treasury,.having paid by check
for the gold, to issue, a gold cer¬
by expend¬
savings and 'is,
therefore, not inflationary.
Bor¬
rowing, however, for capital needs
lead
with
extraordinary process under ar
old act of Congress which permit?
financing as against
borrowing is that the latter
when and if
take hold at
account
./ However,
a
ipublic
can
of
purchased.'*•. To
this
point, the
purchase of the 'gold is like any
other exchange of a
cprnmocrity
$1,274 million
1
money
$190 .million
us
with the Federal Reserve by th'
issuance of'the check for the golc
that
v
.from
rose
to
'
sources
sells-
j: In this operation the Treasury
has decreased
its bank deposUi
in both
none
credit
debt
in
hypothetical case, Jet
by $100 million/
in Elec¬
For the entire group, the
amount.
its
worst'
process is yet to
when- Great
Britain
bank,that bank
required to put up with the
Federal Reserve system a
legal
reserve against the
deposit of ap¬
proximately' 20%.
The balance,
or $80 million, remained as
excess
make
posited with a commercial bank;
thereby increasing bank deposits
postpone issuance of $25 mil¬
lion preferred stock
(s'nce ac¬
line
•//■///
that the British Gov¬
suppose
on
to
complished)
this
total
Oil of California to 66%
tric
into
gold. The Treasury issues its check
s"
is
in
To. take-a
us
particularly
That increase ranged
significant.
from
/'/.'V;-
21
some
.1947
its
/
Reserve Bank "to pay'-the .seller
long- of the gold. The check for $100
important million which the British Govern¬
companies
from ment receives for its gold is de¬
increase
debt
comes
•?.*;
ernment
4:oV;-17.8 o-'Jv'
*240
♦Estimated
;
///v
14.7
228
4
1948—
-
f
204
:
support; from
gold
Bank;
5.2
v
213
j
194-3..
term
4.5
:
any ;
government, Which may be held
on deposit
by the Federal Reserve
16.1
193
I. Parkinson
to the Treasury, except gold ear¬
marked as owned by/a foreign
///
125
T.
V>
country/ it must by law be sold
////■:'; 5.2
////://; :;6.5
■
100
the
our
< ;•
.
was
.that
When
and/
?
commercial
a
•'
parent;'
addition
making,
For
deposited
purchased
without
Gross Nat'l
1939:.
However,
remains
of
deposits
supply.
-ome.
.'
„" '
gold sires a flock of paper money
which foams through the
country
estimated): '
There
million
bank
money
paid
said
$100
our
money
Someone
has
accompanying capital expen¬
ditures
(in billions of dollars—
1948
to
hav¬
further
no
abroad.
gone
behind
That
deposits
for;;
with
bank
Stix & Co.
DAYTON HAIGNEY & CO., Inc.
Lon? Distance 238-9
output
has
for the
gold ' it
market price of everything made,
and grown, plus services rendered)
able
y
*
(total
ply cf this country. The gold is
Fort Knox, and the
machinery
tn
new
paper
ing
^
offered to it; pay-.
2ry are merged in the
money sup¬
cre-
relation to the
tionary while financing from pub¬
New England Lime Common
Reliance
capital
figures
gold
It is
>
or her colonies. The
checks
made in payment for this machin-
money is
bank
/
•
Britain
in the form of
submitted below of the Gross Na¬
Another
Boston Edison
75 Federal
new
■■//'•
or
lic
Private New York
infla¬
our
Need for Capital Funds
•
by creating
.
offset
tionary status?
of
Holding Pfd.
s
money
Tele. BS 128
Boston & Maine Prior 'Pfd.'
e
purpose.
-
Trading Markets
t
our
unmixed blessing.
an
for all gold
ounce
be¬
it
cause
substan¬
very
an
Treasury
nothing
a
$35
pays
addition to
growing inflation.
way
costs
tial amounts to create the produc¬
Dow Chemical and Union Carbide
stressed
our
;
activity.;^:;,;;/:
or
an
made
tion necessary to
ventory.
ST. LOUIS
Boston Railroad
the
1929 and 1939, how
there be but a crucial need of
working capital in
a
which
years
manufacturing
is
of
causes
Treasury
is
in
comparison of time
is
considered inventory profits,
leaving' $12 billion, as surplus.
These surpluses are also backlogs'
as a protection
against recession,
a
reserve
for capital needs and
for depreciation of plant and in¬
This
The
Years / (In Billions of Dollars)
1930 to
earned, after taxes, $12.3
paid out $32.3 billion
aillion
the
only $150 million more
$4.5 billion secured in
securities
10
of the chief
ment
product) and a national pro¬
can
1947.
states:
/'
Walter J. Connolly & Co., Inc.
Tel. HUbbard 2-3790
supply of nearly $3 billion; but this is not
January/ letter -of the National and Carbon to approximately 50%of total capital, excluding surplus.
City Bank, in which, speaking of
the two years ending June 30,1947 Monsanto Chemical, a company of
of non-financial
corporations, it outstanding financial strength, had
Traded in Round Lots
24
equity
the issue of equities and bonds
total
for
BOSTON
1945,
corporations
1947
♦Theodore
in
furnished 50% of the
capital obtained as against only
25% in 1947; further, during the
six years from 1940 through 1945
rations
Via
that
financing
From
in
obtained
was
the
see.
ment
$6 " billion
ne¬
wants
need for
$1.2
capital is
capital
President
Truman
claims they
need—but, is it? Let
The
notes and secured
million in equity capital. This was
;he highest amount of securities
gated, by
the
us
Donds and
and
of
Federal Reserve restricts and im¬
pairs
billion in 1945; in 1947 these cor¬
porations obtained $3.3 billion by
amount
to say, that the so"margin" rule of the
75%
j28/29) $3.5 billion in 1946 and $1.2
much ...needed
far cry
called
$4.5
issued since 1929 when $2 billion
was
issued in bonds and notes
A d
a
and
secured
duction of over twice that of each
,
be
rations
of
are
tration
covering increased . working
capital needs." With substantially
a 50c to 60c dollar (depending on
there has been
years
for
schizophrenia
coming accus*
tomed, the
possibility of
raising this
Theodore Prince
requirements
V, our
business
corporations is of extreme urg¬
ency
in the goal of additional
production. These 412,000 corpo¬
of
process
existing business relations
During the past two
one
billion capidei't economic tal in 1947 (the highest since 1927/
to
tion with
the next^
few years, but
this
is
only
''
'
the U. S.
whereby purchase of gold by
Treasury increases bank deposits add adds to money
supply of
nation, thereby being one of the chief causes of our
growing infla¬
tion. Says process creates bastard dollars which
have no connec¬
Congress on Jan. 7, 1948, stated;
"We are today far short of the industry capacity we need for a growing future. At-least
$50 billion should be invested by industry to improve and expand our productive facilities
over
Parkinson describes
Mr.
President Truman in his State of Union address to
*
Managed Currency
By THOMAS I. PARKINSON *
v''/'-:\,."//V/-:-V.
*A statement by Mr. Parkinson
released by the
Continental Press
Syndicate, Brightwaters, N. Y.
Vilas & Hickey Admit
Vilas &
Hickey, 49 Wall Street,
New
York
City, members of the
New
York
Stock
admit Lulu
ited
Exchange, will
Harris Knies
partnership
on
to lim¬
April 8.
-
Volume
THE COMMERCIAL
Number 4686
167
on
of the ! News
(1423)
Why the Ruhr Is Lagging
I
By JOACHIM JOESTEN
j.
Ahead
FINANCIAL .CHRONICLE
&
'
(Author of "Germany—What Now?" etc.)
v
'
Political economist asserts continuation of Ruhr's present state of "economic coma"
would doom Mar¬
shall Plan to failure. Maintains disappointing coal production is due to food
insufficiency,
By CARLISLE BARGERON
'i
Those Americans who
ashamed of their country, who have
are
:
inferiority complex towards Europe, particularly the bandit ridden
countries of Eastern Europe, can take pride in an episode of a few
an
tnat while we *
radio
have
and
been naive
him
may
and
u n s o-
in
.
we
the;
past,
have
now
Rarred
The
level
his
conniving
have'-Was
characteriz
e
the
'.dictators
for
centuries
in? By
,
the
future
who
will
most
all
Senators
by
papermen.
•
any
these
ing.
But
the
Russian
scorned;
historians
,
time
when^we
ated
in
the
will
»
Ti?
Ihe-New
m
-
world
V
-r*
the
definitely gradu-
old
sukmar*ne
»
mark
$
basis
Deal
scare
'
story
'
"
'
the
core
in
this
country. I remember that
vwnen
1
was
government
We could
anorooriations
boy the Federal
high in majesty,
a
was
ministration, perversely, wants to
kill
the tax
was
and:
y
new^afer circles thatlL
a
nts
p
assureu
1; There
was
a /
deputy
me
rjne
episode
caused
at
whacking
as
we
It is
Our
local
were
In
could
not
on
be
Illinois
came
spineless
sociation
Dinner
v
Annual
the
Meeting
activities,
Waldorf-Astoria
proved that
small, just
we
as
in¬
competent, just as irresponsible
the smallest: town'cohstable.
I
Stock
as
:
have had since the New
high Washington
a
appeared before
a
f committee and announced
r
a
been
sighted 200 miles off Cali¬
sian.
Russian"' submarine
Well, he didn't
He
triguing
wanted
of
;.
the
But
he
so
submarine
?
Senate
gravely
that
fornia.
not
Iron
it
something
to
be
of
a
a
that
had
Rus¬
say
more
described
it
-
Exchange.
one
electric
power.
In
its
>
Announcing the change in
name
-
of Mullaney, Ross & Company to
r
Mullaney, Wells & Company
135 SOUTH LA
^
IP'
'
SALLE STREET
;
;
CHICAGO 3
Telephone FRAnklin 1166
!
•
.
Teletype CG 1110
years
—
What 4 Now?"
PAUL L. MULLANEY
President
evolution'
the
since
Vice President
a
—
sur¬
HARRY B. HEIGN
Vice President
April 1, 1948
v
.of
■
June 4, 1948
.s
(New York City)'
^ ^
Bond Club of New York Annual
Field
Day' at the Sleepy Hollow
Country Club, Scarborough, N. Y.
June 11, 1948
(New York City)
Compromise will be of material
benefit
Rank
r
SECURITIES..
PATHE because of the
to
between
The J. Arthur'
Organization
and
Lion Films, division of
details
agreement are
brochure,
v
concerning
contained in
available
Public Utility
Eagle
Industrial-
PATI1K
£
INDUSTRIES, INC.
Further
Corporation Bond Traders Club
of New York Spring Outing and
Dinner at the Wingfoot Golf Club,
Mamaroneck, N.. Y.
;:T.
v
INVESTMENT
The British Motion Picture Tax
contract
July 16, 1948
Bond
Club
at
the
(Toledo, Ohio)
of
Toledo
on
:
this
Railroad
>
:
;
-
;
Municipal
our
;
request.
Inverness
-
~
the
than 700 correspondents
of
Nov. 15-18, 1948
<
A.C.AIXYN"®COMEANY
annual
Country
on
the
PATHE INDUSTRIES, INC.
■
(Cincinnati, Ohio) I
Municipal Bond Dealers Group
of Cincinnati Annual Spripg
Party,
at the Kenwood Country Club.
\
Club.
'present,; not
one
>$';•*;-Vfy'&■:% Vf.
•
outing
<
commentary
not
a
Senators
more
Saugerties, N. Y.
in¬
as
country west
Curtain. '
is
Teletype: NY 1-115
1
djvA
May 25, 1948
-
Thus, a few days ago when we
£ were in the throes * of the eight
hundred; and ninety-fifth crisis
official
Hotel.
May 10, 1948 (New York City)
; .V■
Annual - Election ' New
York
'•
in,
4
Branch Office:
article, was published on Feb. 27
by the Ziff-Davis Publishing Co.
—EDITOR.
/
/
'
Security Traders Association o1
x
He
wrong, that Federal officials
could be just as
we
-
power over all of
The New Deal
came
York
render, by the author of the above
New York 12th Annual Dinner a1'
Deal
even
of
to
'
the
social
of
;
April 19, 1948 (New.York City)
the Federal
monster. So we
to give the Federal Govern¬
which
lack
comprehensive
study * of
Ger¬
many's
political, economic and
and
Chicago Room
were
'
burning
for
wood,
I "Germany
■
Dealers- As¬
Securities
in
^ ^
(Chicago, 111.)
April 13, 1948
the
)
New
CO.
&
Telephone: WHitehall 3-9898
immediately pre¬
ceding the outbreak of World War
II, European countries imported
could handle the
increasing
are
In
-
came
our
HUNTER
50 Broadway
CHARLES C. WELLS
com¬
touched.
export,
Britain No Longer Coal Exporter
Field
Investment
corrupt and but putty in the'
the Hotel La Salle.'
hands of the Power Trust. But am
enforcement officer
large
for
nation.0
CO MING
away
and
our
NEW YORK OFFICE
beginning and the end of Europe's
vicious 'circle of economic Stag¬
turned
.utility
told
in
to¬
production. Pit props are hard to
get, new housing j? projects
for
miners cannot be completed, and
so
on
and so forth.
Coal is the
EVENTS
and
ment
coal
are
more
missions, we were
to be convinced,
level
crisis
pretty cheap stuff. But
it is the way they do things in
Europe.
So we are getting to be
regulatory auover to the Federal Gov-
ernment.
Announcing the reopening of
quantities of
supply
lumber
^ shots in world affairs, '6nd 'in
Iworld intrigue;'
steady
a
thority
the
and
mally
subma-
this
and
from the United States
(Continued on page 40)
day is so short is that Sweden,
Norway and Finland, which nor¬
J
States'; Rights
more
ports
example, one of the reasons
produce
respect of, awe of,
Federal authority, of
course, that
.
For
why Europe's lumber supply
turn, the lumber shortage hampers
efforts designed "to increase coal
-
was
Even this compara¬
tively small amount, taken out of
'be traced back, atr least in
measure, to th$ fuef short¬
of the Brass'and the Administra¬
dread of him when he rode
by in
his horse and
buggy, but of his
son as well.
7.::vi.
It
Germany, which in its best year
the war shipped some 50
tons
of coal to foreign
countries, exported only 14,723,500
1946.
1
Fills Gap
yawning gap which the
simultaneous eclipse of England
and Germany left in the European
coal supply picture has been filled
to a considerable extent by im¬
million
tons in
S.
The
before
ills
closely related to these enterprises
tion.
United
wholn^^
bad eh
U.
' /
some
ar-
| Federal officer.
>
cfin
"
'
satellites in East¬
age.
gravely that the arresting officer
would surely get into trouble be¬
cause he'was
interfering with a
;
bill.
play tricks and have fun
rested in my
mg
,
reduction
and her
Europe. /
•<>;''v;
:
fact, all of Europe's economic
Ad-
C!CBu?nyouedS: ?0V£t\t VXITouT Feder'*
^
officSfLve
tifen,0thafner
Negro postman
once"
t™.
ma. iv is
town, while
delivef-;wlsLgto'n^n
the mail, for
misdemeanor
A
l
the
that
and
to
Recovery
European
the
of
-v;v.
■4 Europe's need of coal is second
only to its need of food. The two
needs, of course, are closely inter¬
related
and
interdependent.
In
significance that the Mililowered .high public office to the
tary is trying to get a draft, UniPIa<~e it has ever reached versal
Militaiy Training, increased
130,271,900
is out of the picture as a
the Marshall Plan is doomed
Program.
without
years
production of
come, mestic requirements. By compari¬
son, in 1937-1938, Germany's coal
coal-exporting
country.
In
its production, exclusive of the areas
stead, Poland has emerged as a now under Polish administration,
major
supplier, but its export amounted to 242,220,000 tons, of
surplus of about 20 million tons which 44,220,000 tons were -ex¬
a
year is largely earmarked for
ported.
..v;
Britain
failure, no matter how many
billions of dollars are spent on it.
For revival of the Ruhr is the
' ''one day's scare headline. It is not
•
under Roosevelt
and
probably for
total
tons in that year, could be spared
only at the expense of urgent, do¬
slim.
Unless the Ruhr can be roused
from its present state of economic
No, the whole thing served for
-.
performance, the
attaining the 484,000-
of
;;
.wy<
'
of
On the
this
of
look decidedly
approached
Ambassador-;on
by
end
a
producers,
Germany.
Today,
goal by the end of this year
ton
tb
subject at all.
school'as
daily
tons
1947.
chances
coma,
has
envis¬
a
the
/
/
Ambassador just what was cookone
Joesten
and
ern
000
Joachim
England
Russia
output of 330,-
would not have asked the Russian
no
in
66,000,000 short tons of coal
from the two principal
last August,
aged
r It strikes me as amazing that
prosperous
world, and the. if this submarine was out there
only: to become in the Pacific and if this was un-
usual, that the State Department
con-
some
Washihgton
which
y,J';: ),;>?: ';;r-
bored at the estate it had
attained,
and
then
returned
to
the
old
world which it had once
the
at
ican coa*
the
powerful,
targets
o n
ference
by', news¬
nor
This
below
Anglo-Amer¬
these
not
our nation freed
itself from the old world
intrigue
and became the most
in
have
one
produc-
set
it mean
scouting
we
far
t i
suggesting the answers
questions. The amazing
thing is that they were not asked,
write about how
nation
is
to surface in any one
chance do
of
the
not
am
to
imagine, in fact, that the his¬
of
any
littler-
or
than the
year ago.
submarines, testing their truism i
radius, operating Within*200 miles
of Russian shores? T-'-ft V
I
torians
seas
shores or-preparing to move
our
trade.
I
the
Are
it significant? Did
the Russians were
d" that
past,-; we.; a re
now
.quite
adept at their
Bargeron
statement."
of our ports? Was it his point that
this
submarine's
presence
200
miles off our coast was unusual?
l
that
Carlisle
were
free? : Isn't it a fact that a Russian submarine would be perfect-
scheming
and
daily,
.
more
what
the.ly entitled
technique,
:
the implications
of
affairs
;
No single person has yet asked
in 1 him
phisticated
world
|
While
Congress argues the pros and cons of the Marshall Plan, the economic disin¬
tegration of Europe continues apace. According to a late report from the U. S. Military
Government Office in Berlin, Ruhr coal production is down
again to some *260,000 tons
r '• "
commentators, asked
what he meant.
,
-
>
It shows
"grown up."
which shows that we have really
days ago
"y"
consumer
goods shortage, political agitation, uncertainty about mines' ownership, and Communist obstruction,
States following remedial steps required: (1) sweeping currency
reform; (2) food stabilization,
rather than abundance; (3) large equipment investment; and (4) morale.
(Dallas. Tex.) >
National Security Traders Aa»o
ciation Convention.
' .
COMSTOCK & CO.
CHICAGO 4, ILL.
231 So. La Salle St.
Teletype
Dearborn 1501
CG 955
Incorporated
II
CHICAGO
NEW YORK
BOSTON
PHILADELPHIA'"
MILWAUKEE
MINNEAPOLIS
f
OMAHA
KANSAS CITY
'
INDIANAPOLIS
>■
(1424)
THE COMMERCIAL
&
FINANCIAL
CHRONICLE
Trends Affecting Real When Stalin
;
Asserting although in!rinsic value of real
Radio commentator, pointing out
Stalin is only mortal and his
changes slowly,
expresses belief we are near top of present price swing,
particularly in housing, and prices are headed downward. Cautions '
regarding mortgage loan expansion by banks, and hints Taft-Ellender-Wagner Act, if passed, may prove dangerous. Says Veterans V
Housing Act has given artificial stimulus to real estate prices, and
estate
Looks for
At
more
has kept
death
dicts
outset
I
should
like
whole
domestic
define, limits and indicate the
approach to my subject, and would also like to confine
my comments
16 the field of
housing and home finance.
Let me be perfectly
ffank in stating that I am not
qualified to chart the course of real
prices
vahies, hut
my friends.
Vou've
had
have I.
„I/wiltl ltry to
to < this
subject" "those
c v-c./u-'
;
think',
I
work
have
the
happened
in
sJtite mortgage
"lending , busi-
^;:n(,e>
during
s.
past few
-
'
years
h d- what
a
is
happening
,
>
howl It will be
to
those
my purpose
Wflliam A. Marcus
analyze
v
Will have some
trends
bearing
which
the fu¬
ture values of real estate.
Without
becoming too technical I would like
on
a
differentiate between value and
pfice. The term "value" needs some
several,
My"dictionary contains
of which
one
ticularly well suited
"the
pose:
seems
par¬
for this pur¬
desirability
or
worth of
thing; intrinsic worth; utility."
i
^rlce
"the
rig
amount
at
which
current
place
in
transactions
take
market."
illustrate, using
To
the
my
definition of value, the desirabil¬
ity or worth of a thing will vary
under different conditions in the
eyes of various persons.' When I
cdnsider the value of
my home I
think of its contribution
to the
Cdmfort
Wife
and
and
enjoyment of my
children, of its shelter
fTOm the cold and its
sunshine,
around
sstate
will
of
the
the
to the
access
social
times
my
house for sale must look at struc¬
tural
soundness, replacement
costs
(tegs depreciation), character
the
has
price swings has been kept.
followed
since
the
today's market.
■
With
gTiat
^
a
period where
housing- combined
desirability,
increase
induced
in
by
personaL
a
in¬
comes, in marriages, and easy
mortgage credit have resulted in
abnormally high prices. We might
Ca|f this a condition- of scarcity
value.
Passing
As
the
of
"Scarcity
demand
lit more
satisfied,
With the demand for
ownership, and
as
Value"
becomes
more
particularly
Single family
easy
mohey is replaced by
mortgage
more selec¬
tive?' lending
practices, scarcity
/alue will become less and
less
£
price stimulant.
As
the
single
family ownership
demand is now
fairly well satisfied and as mort¬
gage credit progressively
scarcity
jaaas;
tightens,
value
is
diminishing in
*
*An
address by Mr. Marcus at
the Eastern
Regional Savings and
Mortgage Conference of the
American Bankers
Association,
New York
City, March 16, 1948.
;
Likewise do I believe
r
high cost of living, and that
Emerson Electric
—
Kidder &
Manufacturing !
Memorandum—A.
Co., 1 Wall
Street,
M.
!
New
York 5, N. Y.
\y Gaylord Container Corp.—Anal-; |
*•
y
ysis—Reinholdt
&
Gardner, 14
Street* New York 5, N. Y.
Wall
Street, I r
*"■ V-//
Grand Union
74/'.■
Companyf-Invest-"
\;
appraisal—Kalb, Voorhis &
Howard Balanced Fund
Co., 15 Broad Street, New York 5, T : V
ment
of
N.- Y.-7-
Vi 'V;;7
material
Insurance Stocks—A dis¬
cussion of their investment values
.
:
„
~
.
.
H.»ry J. T.ylw
we
in.1
came
;
We
2,
1
Wis.
v:.»:
,
14, Calif.
North Fourth
Also " available
of
is
Milwaukee
^ .
Dempsey-Tegeler * & Co., 210
National Rank of Tulsa—Anal- "
Seventh Street, Los Angeysis—Edward D. Jones & Co., 300 *
es
We've
Nevertheless, the world
Street,
"■
West
not
1947
is
Insurance
tabulation
a
Company
:
-
Mo.
Street, St. Louis 2, rt
-r:; i;"v3;
Re¬
'
National
City Bank
of New
York—Circular—Laird, Bissell &
>
*
;
Municipally Owned Toll Bridges
Meeds, 120 Broadway, New York
Tabulation
of
28 •
municipally 5, N.Y. -
and;
history
The Mortgage
and
—
phia 9, Pa.
industry with specific Company
■
Company
I
moving picture, cut and dried
unchangeable, HEvents can owned toll facilities'
either
ac¬
happen,
and
do
happen, 7 tha quired or constructed
by the mu¬
New
England
Public
Service
change things greatly.
nicipality
during the period from Co.—Analysis—Ira Haupt &
j..
i-■
tV-'rt.-f •*./> vv...
Co.,
1927 to 1947,
including
engineers' Ill Broadway, New York 6, N. Y.
Stalin Is Only Mortal
~
good chance of going
as a year of re¬
turning economic sanity.
r z
Clinton ; Machine
descriptive; of
Also available is a current re- '
Fund; its policies, record, and appraisal of
;; United States Pipe ^
nvestment philosophy—Eaton &
& Foiundry.:
io.ward, Inc.; 24 Federal Street,
Bojston 10,Mass.. ' *
: McQuay,
/ Inc» — New";: report—
■yj
Loewi
& Co.; 225
East Mason ;
Fire
a
a
in
1
'
Circular—Coffin, Betz & Sullivan,
123 South Broad
Street, Philadel¬
Fibre Industry—Out-
Yearbook—Compendium
.
It's as pat as
that, this unfold¬ sults.
ing of events in Europe,
in the
point
has
*
■.•
he
;
where
Exchanges
$10—yearly
(six
W. Stephens, 15
Out look—Memorandum
Eaton &
1948
data
know the ending. Let's
go.
seen it all
before."
the recent drop in the
commodity
markets marked the turning
1948
'
■
troit Harvester.
Curb
Bache &♦: Co., 36 Wall
New York 5/NV Y. ;rt
f-:-.
Then
is
capivirtu¬
711, k
nudged her and said, "Molly,
this
copy
$50—F.
Copper
y
con-
screen.
you
.
down
:»
the New
on
America—Newburger, Loeb & Co.,
15; Broad Street, New York 5;
an;:
your best girl,
looking at the
particularly in the field of hous¬
ing, and that the prices are headed
.
-
*
Factor
.
•
There
are
course, which
orice of real
other
factors,
many
affect
the
estate
types of properties and
as
serv¬
course.
effect,
must
hope
are
we
should
as
i '
playing, > but that we
should study
carefully the results
last two
of savings
and mortgage
activity and chart
the course for the next 12
months
if not for a longer
years
period.
loans are the principal in¬
vestments of savings banks and
savings and loan associations, and
gage
.
one
of the
largest items of the
as¬
sets of
insurance companies. Mort¬
gages of record are estimated to
be over $40
billion
is
divided
billion, of which $14
with; banks,
lodged
about $9 billion with in¬
sured
commercial
banks
and
about $5 billion with mutual
sav¬
,
ings banks.
of
./'
increase of
deposits
has
savings
slowed
rially, whereas the
on
real
z
estate
offer
time
*
•
'* ;
v1 *■
z.VV": *
:
is
of
the
most
tion for
I
I've
way.
•
-Vf-f
find
can
Let's
\
none.
that; to-
verifica¬
Hentz
&
Co., 60 Beaver
Street, New York 4, N. Y.
Also in
ment
is*
exactly the
the
on
about
in
health
with
sinking funds.'-'1
job, and
the
available
our
sidering the death
and
38)
on
brief discus¬
Preferred
* 1
-
Utility
>
Now
Ratios
utility
die—that
is
a
leaflet
a:
totalitarian
second
man
Some
man
second
but
it
in
1
may think
doesn't
work
lini.
;
and
Price
Yields
on
common
no
was
(Continued
second
no
he
stocks.
Earnings
120
;
f
public
v
;
page
operations
South La
Salle Street,
Illinois.
y"
&
broadcast
the
by
Mutual
Mr.
_
Musso
39)
Taylor
Broadcasting
System, March 29, 1948.
Co.,
of
231
Chicago 4,
vyI;' -73-
National
Public
Bank
Tacoma>
z
Narrows
<
&
Trust
(State
)«;•
?
7
ot>
>
;
i
Cross, Inc., 40 Wall Street, New
York 5,
^
If-
With Westheimer & Co.
I>"
;V
""(Special
to
The
Financial .Chronicle)
: v
,
CINCINNATI, O.—Walter Hee-; :
kin
is
322
Walnut
with
Westheimer
Street,
&
Co.,. '?
members
30 Pine
Street, New York 5, N. Y.
"Switch"
Possibilities—List
of
Snider'
"V-:-
♦
American
♦
»
.o
Machinery
Circular—Gordon
Graves
30 Broad Street, New York
Company
to
The
KANSAS
Corp.—
Co.,
CITY,
Cheonkt*) :
been
added
Co.
—
Data
—
Public
Wright, Sni-*
Company..'
Service
Buckley Securities
(Soeclal
Philadelphia 2, Pa.
William
—■
-
to
WEST
Conrad"
on
available
are
-
The
Financial
PALM
M.
I'
S.
is
memoranda
Beeken
Portsmouth Steel, Gruen Watch
and DuMont Laboratories.
Guaranty Building.
now
-
■
*■
,
;•1;r,
,
He
Company,
was
'
:
with
pre¬
viously with Southeastern Securi¬
ties Corp.
;
Chronicle*
BEACH, FLA.—
Allen
z
^
H
"
4, N. Y.
Corporation, 1420 Walnut Street,
Also
f
to
With Wm. S. Beeken Co.
Hlinois
;
•
MO.—Harold
the staff of Prescott,
der
[
Financial
Hunter Jones has
yy
&
(8p«cial
'
*A
Illus¬
of ! ; representative stocks with ap¬ the^New York Stock
Exchange:^ 17; :
proximate price, dividends paid in ^shd:
;dthernleading- nationalv s ^v4
1947, and price range for the cur¬
changes, v t ;7,Vv-"
:
rent year—Stanley Heller &
Co.,
■:
!■
out
second Hitler
on
—
44
Central
was
There
and
Representative Stocks—List of
—
that way.
There
and
Comstock
I
-
stocks
totalitarian
a
activities
v
news
state
Inc.
company.
offering interesting outlook
—Stanley Heller & Co., 30 Pine 7
dismal chore, in just Street, New York 5, N. Y.
as
Industries,
With Prescott, Wright,
Italy, Germany, Spain.
They're
all just alike in this
respect: there
no
tail
of -current
Developments.:1
Bonds
con
Dictatorship
I've- worked
paperman, a
about every
Pathe
Bonds—Tabula¬
of Stalin.
No Second Man in
Office
trated brochure describing in de¬
appraisal of City of Philadel-
of
thing abroad today without
Co., 10 Post
Square, Boston 9, Mass.
Railroad Equipment Certificates 334 % Bonds—Circulars-Roosevelt 7.
-Valuation and appraisal—Stroud &
be
I repeat, we cannot
minds about any
may
up
Co.—'
dealers—
Washington) Toll Bridge Revenue
to
he has been for the
past
t
as
Again,
make
over
page
data
are
Public; Utility
Railroad
condition
seems
same
Cement
&
price, yield, etc., for bonds, Company of New York—Analysis
which are arranged
according to —C. E. Unterberg & Co., 61 Broadrating—Vilas & Hickey, 49 Wall
way, New York 6, N. Y. I
Street, New York 5, N. Y.' Also
phia
But that Stalin will
is going to happen.
State.
on
a
of
Stalin
reverse.
rt
February,
excluding them in making
these comparisons in order to em-
and
sion
can
five years.'
is
am
leaflet
Continental Baking Co., Northern
Pacific
Railway, and St. Louis
my own personal
the very top of our State
Depart¬
comments
based
upon statistics from the
report of
all insured commercial
banks in
the United States as shown
in the
mid-year figures to give an esti¬
mate of those for Dec.
31, 1947. As
the mutual
savings banks figures
on
mortgages have not varied
greatly over the past two years, I
same
is ill
Certainly I
Oregon-Portland
Up-to-date circular fbr
Lerner
Financing—Outlook
knowledge, our American ambas¬ & Co., Inc., 123 South < Broad
sador in
Moscow, General W. B Street, Philadelphia 9, Pa. '
: •
Smith, is at present reporting to
Also available are a valuation
lending
mortgages
has
1948 Federal Reserve
Bulletin. I have projected the 1947
1947—
tion of
start
that Stalin
to
Co.,
—H.
:
I would like
Bond
Public
that out
get
&
of
sought;, in the
quarters,
rumors
tell you
68.
now
health and
reliable
New
-
*
1939
years
Nicolaus
Inc., 105
West Adams Street,
Chicago 3, 111.
mate¬
some
(Continued
•
V
^
Stalin
rate of
greatly speeded up.
to
and
-
with his
;
down
:
today
.
His Death Must Be Considered
•
Since the end of
1945, the rate
•
abroad
considering the death
Stalin,
•'
now
the
anything
without
not
bankers
Stifel,
revenue and actual
gross
for
revenue
Southwestern,
We cannot make up our minds
;
we
before
now,
for the future.
about
,
it
about
we
make up our minds that all is
cut and
dried, and lose all
,
Thus, I believe*
minimize the part
fundamental that
so
think
we
today and tomorrow will leave
imprint on
the
nation's
'
sure to hap
change things
But that it will have great
that much is certain.
This is
minor factor, yet it is an
impor¬
tant one and it is the one
where
vou and I
helped to write yester¬
day's history and where what we
a
"
that is
greatly, is the death of Stalin. No¬
body can
know
the
effect, of
ices.
'
event
pen. and which can
Mortgage lending is not the
major factor in price determina¬
tion; in fact it might be termed
do
estimated
One
market
well
as
of
■
We have been in
fne scarcity of
like
old-time
I believe that we are at or near
the top of the present
price swing,
downward.
'
Central Illinois Public Service—
reference Celanese Corporation of
So
S
does n'ti t
;:
.You as savings bankers and
neighborhood,, transportation
facilities, proximity of schools, 'ending officials know the
impor¬
churches, shopping districts, the tance of mortgage credit. -Mort¬
m
in
thirties,:
seem
record
01
§eWcity of homes and the price at
Which similar houses are
selling
feeling.
,
slow
it
of
pricing
real
of
rest¬
high,
Nazis
took
and
Chemical
us,
•
but
in
as
'
Study — Goodbody
&
Co.*
115
Broadway, New York 6, N. Y.
Also available is a
study on De-;
William Street, New York
5, N. Y.
the..,
real
slowly and
.pattern,
the desirability
that
Stalin
important to
utility of the properties them- t i n u o u s
•elves will change; but that the ;movie? Pe r- ;
price of real estate will follow the haps you sat ".
erratic but rhythmical course that ?there:;y3,W,i:t h
\
economy.
realtor
of
single
ssues)
"
that
guess¬
on
dies?
York Stock
ook for the
md
ful change from the
busy market
place, of the birds that wake me
with their song, and the
neighbors
Whose greeting is
always friendly.
These values to me are
the
prices
observation
if
ally every stock listed
newspaper
has -changed
continue
some
fireplace, of its
the
zhanging only
the other hand is defined
on
to future
with
fundamental 7 value
'
^
as
estate
on
and
this
these;-,: days,
patching Rus-: |
sia follow step
ji'PX steo the
;
safely: steer
cam
cUarof arguments based
r.
which
rCnces
So I believe I
;
foreign
policy.
When
read
you
importance, and .utility ,or. worth
valjue is coming into its own.
"prelate*
happens
It could be very
estate
or,
Soviet
pace
to
ows, earnings,
dividends,
alizations, and volume on
result, there will be a
throwing into the air of
as
What
the
efinition.
new
certain
the
Charts — 922 charts in
spiral
)Ound book covering 12
complete
years, and showing monthly highs,
be considered, pre¬
blood purges, but con¬
must
cludes,
with housing needs.
stable realty values in future.
war
'
*
It is understood that the
firms mentioned will be pleased
to send interested
parties the following literature:
By HENRY J. TAYLOR*
Bankers Association
ABA official
housing construction, since
'
'
'
v
Then?
Senior Vice-President, American Trust Co., San Francisco
.
Recommendations and Literature
•
By WILLIAM A. MARCUS*
Vice-President, Savings Division, American
Dealer-Broker Investment
What
Estate Values
Thursday, April 1, 1948
'
,
Volume 167
•
Number 4686
•
THE COMMERCIAL
-
&
FINANCIAL CHRONICLE
f
y
yi •
'
•
•
•
•"
.
'
t,v-
.«-■■■
.
■
^
(1405)
<
REVENUES
-
FROM
December 31,
.
y'.Ly, ■;
/
y
'
•
'
>
OPERATION
'
j-t
' ty
•
•
11947
.
Change from
'1944. ■'
^
Increase—I
Oecrease— D
ifl.tut
Hauling anthracite. V»
19.07 <
$ 24,057,840 $
..;
Hailing bituminous coal.
.
.
Hauling'merchandise. V.
5.57 *
Carrying
1847
fa*
''Mail,
HOW WE USED
YJ Vy
VyV
AuA 77 85 cents
OUR
■f .;y/V;YyV,
—
■
530
1947
1946
r
EXPENSES Of OPERATION
Wages.
\
SIMMS
Fuel..
.
.
.
.
,
.
terial.
;
......
expenses
..
.;
Total
-•
-
^
772,526-1
erations..
.
.
1
x '
y' Y: V'//
Op$
in
history.
1947
Wage
will
cost
Company approximately
'
$7,825,000
458,847-D
$ 7,379,572-1
from
r
•
annually. '.
Payments
V y\' V-'y'Y 7
6,118,301
Revenue
our
increases
to
the
were,
:
1""
y
Expenses V. Y$ 90,894,119
y ;
Net
"
. r
charged
-was
highest in
the
3,400,380-1
:
,y,t r y
.
y
.
744,084-1*
6,189,406
.
$56,899,201
$ 2,921,429-1;
14,117,100
"yy
amortiza-
.
tion, and retirements
^
„
1,613,0614
Wages of $60,379,874, of which
Indtease—I
yy
ma-
....
.........
Depreciation,
V
6,475,73 1
operating expenses,
Decrease-D
7,570,11I V
..
Payments for services and
\
'
$ 56,899,201
.
Rails, ties, and other
*
1,980,966-D
$ 116,760,042 $ 15,333,92 14
...
•
Change-from
:
•
•
,■
December 31,
v
\
11,643,5974
7,674,300
and- other
REVENUES
VyV'YY\
'
RAItJUS.V
56,288,630
transportation services..
Total Revenues
112-09
3,847,4354
passengers... ,;,
express,
2 10,7944
22,243,541
*■
117 "
totaled
Stockholders
to
$4,197,372.
,■
Reading's
uninterrupted dividend record
y
■'
i\yK on all classes of stock dates
y-
7,^54,349-1
25,865,923
$
12,972,305
$ 3,906,679-1
•
back to 1905.
TAXES AND FIXED CHARGES
TTax accruals.......
y
I Payments for
6aJ
ities
I
I
of
...
$
ments
re-
Income
...
^
426,977-1
from
rentals, etc.
,
,
...
.
,
.
1,599,411
y
y;y 64,259-D
Net
•
Thirty-eight
new
steam
or
1
13,55 1,383
Charges.
Fixed Charges.
.....
v
ordered
during
the
new
Extensive
•
year.
.
x
will
y
-
and
terminal
permit
use
of
(
'
OWNED
Roadway
y
less
7
FINANCIAL
Y
ing
and
more
reduced
leased
$70,978
CONDITION
December 31, Change from
:
Property
and
....
ponies.
than 26,000,000 bushels of grain
4,550,000 tons of coal,
v
Total Assets
..
com-
52,172,613
....
37,514,625
1,629,441-1
20,357,971
2,995,776^
r,,
.
U
v . %
..
2,316,557-1
$388,859,519
.
.
y"'-'
,
$ 6,173,933-1
yVyy*.:y; ■■ :4-'vVyvVy'-., V,
y,
Mortgage Bonds and Equipment Ob¬
ligations.y;.,. Vy..
Total Current
Other
.
LiabilitiesV\;,.W...,
$ 95,564,562 $ 2,713,322-D
27,845,920
.
4,810,579-1
Liabilities.4,490,444
662,864-1
260,958,593
3,413,812-1
Capital Stock and Surplus..........
'
Total Liabilities.....
President
$278,814,3 10 $ 5,223,711-1
,
y;T...........
...
All Other Assets..............
Philadelphia
previous records by export¬
...
"46
1947.
Equipment,
for depreciation
reserves
Current Assets
W
"'
Port Richmond Terminal in
exceeded all
payable to
were
securities in lessor companies.
;
OUR
OWED
•
rents
annually by the purchase of
64,724-D
imnew
heavy motive power over greater portion
of ■ system.
debt. V
Program
trains.
roadway
provements
funded
$ 3,556,434-1
5,335,734
Stocks, bonds, and notes of other
•y
two
over
hundred thou¬
diesel locomo¬
modernization, of which "Wall Street" is
first of three
seven
dollars of
roads
income........8,215,649 $ 3,621,158-1.,
for extensive passenger car
commenced
"Net
•
V
tives, 3,188 freight cars were delivered
or
pay¬
$96,995
.
Income Available for Fixed '
—
sand
$ 3,620,693-1
investments,
.
million
-
11,95 1,972
.....
interest
reduced
by the purchase of
94 1,646
Railway Operating In-
come.
yearly
were
-
of Com-
use
pany's facilities by others
'Net
Future
•
of facil-
others, less
for
ceipts
use
.........
$388,859,519. $ 6,173,933-1
-
y
.
/ -
.?
* '
/
9
^
'
10
THE COMMERCIAL
(1426)
&
CHRONICLE
FINANCIAL
Thursday, April 1, 1948
/
NEW YORK
LIFE
INSURANCE
ReviewAof
Brief
the
■;
.
103rd Annual Statement to its
Assets
♦
.
The
♦
COMPANY
held for
assets,
the protection of the Company's life
policyholders, become payable as the policies in these categories terminate
in 1948
by death, maturity or surrender for cash after having been in force
insurance and
annuity contracts and to meet other obligations, totalled
$4,234,184,598 at the end of 1947.
Bonds and stocks are valued in
conformity "with the laws of the several Slates and
as
National Association of Insurance Commissioners.
Policyholders
at
prescribed by the
\
least twenty years.
Surrender .Allowances
♦.♦For the year 1948 the Company has adopted
plan for allowance of amounts in addition to contractual cash values
under life insurance policies issued before June 1, 1944 which during 1948
are surrendered for cash.
This plan has been made possible because of
the Company's having completed the major Steps in Its long-range program
of strengthening insurance reserves which has been in
progress for several
♦
a
Liabilities
The Company's insurance and annuity reserves and other
aggregated $4,003,065,874 at the end of 1947. j Surplus funds
general contingencies totalled $231,118,724.
♦
♦.
liabilities
held for
years.
Reserves
♦
♦
♦
At the close of 1947 the
Company reached
for strengthening insurance and annuity
in its program
its life insurance
reserves
are
held
now
on
an
a
:
major objective
reserves.
interest basis
New Series df Policies
All of
of either 7
introduced
a
values-based
2H per cent or 2 per cent. All of its annuity reserves are on a 2
per cent
basis.
The program of reserve strengthening, wh£ch was undertaken to
8
protect the interests of policyholders, has given recognition to the effect %
upon the Company's net earning rate of exceedingly low yields on high- :
grade investments. Policyholders can take renewed assurance from the
knowledge that the Company has an overall reserve basis as strong as, if
not
stronger than, that of any other life insurance company in the country.
series
new
•»
♦
of
17,
1947
per cent.
iissued from June 1, 1944 to
November 17, 1947, such values
Experience Table of Mortality and interest
Life Insurance in Force
the
Company
1941 Standard Ordinary Table of
In the Company's series of policies
the Commissioners
on
Mortality and interest at 2
omthe American
November
On
policies with cash and other non-forfeiture
;
♦
♦
at
were
based
2% per Vent,
At ihe end of 1947 the Company's life
billion dollars, which was the largest
insurance in force exceeded nine,
volume of
Mortality Experience
♦
♦.
In November of 1947 the Company adopted for its new
mortality table based ori more recent mortality experience
and therefore, in the years to . come, the margin between
"expected
mortality" and "actual mortality" experience should not be so great as
was
protection in force in the Company during its entire history.
Policyholders■"> have $9,063,604,614 of life insurance protection under
The Company's mortality experience in 1947
3,683^297 policies* This was $520,^96,199 greater than at the close of the
previous year.
favorably low.
series of policies a
•
Sales
in the past.
In the
A:'
>
Expenses
*
*
throughout the
essential
Interest
Earnings
*
wages.
*
♦
♦
Company's program of
•
strengthening, the rates of return available *
high quality continued low throughout the better j
part of the year.; However; in the closing months of 1947 there was an
encouraging upturn in interest rates on new investments which it is f
hoped will continue.
]
•
'
t
on
new
new
life insurance
of sales and
during 1947 totalled $857,384,000,
life insurance in force, Family Income policies
among many
other companies.
insurance in 1947
were
On a corresponding basis, sales of new life
per cent' less than the sales
approximately 2K
in 1946.
Payments to Policyholders and Beneficiaries.
While the rate of interest earned by the Company
in 1947 exceeded the rate required to maintain reserves because of the
.
Sales of
paid for in 1947 are reported on a higher basis than in .previous years.
This change has been adopted to conform with the customary
practiced
understandably has been
Continued efforts are being
improve efficiency and effect economies without impairing the 8
services rendered by the Company.
*
♦
amounts
''-\v'v
country, quite
by rising costs of materials and
made to
*
The Company, in common with practically all individuals
♦..
and businesses
affected
"•••■v.1";1;
»♦
reserve
♦
•
During 1947 the
Company's total payments-to policyholders and beneficiaries aggregated
$196,798,797. Of this amount, living policyholders received $115,716,396
and the beneficiaries of 19,804
policyholders who died received $81,082,401.
investments of
A
Nationwide
Organizcttioii
♦
♦
♦
each of the .48 States, the District of
The Compaiiy does business in
Columbia, Alaska, Hawaii and the
.
Dividends
The
provision for 1948 dividends to policyholders is
compared with $41,730,229 for 1947. The amount
available for dividends wias affected by the low
yields from prime invest¬
ments and increased
expenses due to higher costs of materials and wages,
as well as
by the Company.'s program of strengthening reserves mentioned
above.
'
f"<
'\y ••;
.v.-: y
J •,8~': ^ -v 8
..
$37,151,312,
♦
as'
•
_
k
'
Termination Dividends
dividends
payable in 1948
Such dividends, which
•
x
are
.
-
The
V
V
Company-.has -declared termination
life insurance policies in certain categories.
included in the provision for 1948 dividends to
♦.
on
♦
Dominion of Canada.
While national in scope, the New York Life is
very
largely local in its operations in providing services to its policyholders
through 138 Branch Offices in principal business centers, as well as through
its sales organization of
States and Canada.
Volume
THE COMMERCIAL
Number 4686
167
FINANCIAL
&
CHRONICLE
s
*.
i
■
—
—
(1427)
.
•..
,
—
NEW YORK
LIFE
INSURANCE
COMPANY
Statement of Condition
December
Cash
on
Ronds:
*
'
'
;
hand
/
or
ASSETS
in banks...:;.
i
'
_
......
1947
..
.
LIABILITIES
a
"
$ <741,558,001
-:;.v„
;■
'
Reserve for Insurance and
'
;
United States Government.
....
.
.
.
;$2,332,049,733
.
.
Canadian
—>79,364,383
..
Railroad:....
'Public
33,339,605 ■>
7.
...
Computed at 2K% interest.........
J
Computed at 2% interest...... ,' i....
/Reserve for optional ^settlements
-
Municipal. .....................'
3,440,942,321
viously matured....:.......
■
.
.
546,976,861
....................
Stocks, preferred and. guaranteed.. .7
-240,074,438
;....
t.......
j
i
-
Provision for 1948 dividends
104,539,271
.:.
real
fl',.
estate.
.,'.7. .$
...
398,717,530
.
^
Real Estate:
'
• "
-
.$2,560240^7 | f3;278>104;585
717,863,'928
under .policies
<......;....
j
' '
/
pre-
7;'
£•* ;
t
Properties for Company
■}
-
;
use.........
. .
policyholders.
;
10,512,255
Properties^
;
ii;
■'
•
\
.
:
'!
•'
'
.
•
.
;
Reserve-for unmatured
6,465,819.
Housing and Business Properties
Policy Loans:........ 7
.
-37,151,312
39,071,393
'•■"■V
'
'■
::^"rv.V
•"
v
-
options in policies*...........
Reserve for other insurance liabilities.
23,249,360
v.-.7;^
..
Provision for taxes.
.
...
.
...
......
.
40,000,000
5,543,653
;
...
;
TOTAL
-24,375,574
•
•
$55,014,806
are
in
the
above
LIABILITIES.,,J'.V;.'.".V...L/.
:
'
$4,234,184,598
-
7'■:■ ...> >'?r-
Of the securities listed
5,666,318
.
Surplus funds held for general contingencies....... V.
39,265,085
'
-
;..;..
.
Miscellaneous liabilities............................;
premiums and other assets.;.
:
"...
statement,
-securities valued at
deposited with Governments and 'States
'-Z
as
required
i
'
'
-
.
i
>
I
The
Company started business -on April 12, 1845.
The
Statement
*To
A
v
on
believed
7y
to
Annual Statement filed with the New York State Insurance Department.
complete report will gladly be sent upon request.
more
details
to
the
In addition to further
Company's operations during 1947,, it discusses
be of
'
231,118,724
$4,234,184,598
provide for 2H% interest valuation on maturity-of options in policies
prior to 11939, which mainly have 3% interest guarantees.
issued
It has always been mutual and is incorporated under the laws of the State of New Yorki
of Condition shown above is in accordance with the
$4,003,065,874
■
> ' y.V> 7;,7--.. v> >: >: ;>>■> '>
'■
3,507,627
•
by law.
Mi'vO 77;-ft'./
13,968,168
4 156,836,20?
Interest and Rents due and accrued.:...;;-1
Deferred and uncollected
213,701,744
including
S385,910 under contract of sale
Rental
•
....... 4
'
Foreclosed
366,351,074
-
.
.
.
$
Company.,
Policy claims in course of settlement and provision for
claims not reported
/.•..;..:.......
|rLessValuation Reserve............ .* 7' 12,276,826 i'f | 386,440,704
•
t>
j
.
Reserve for premiums paid in advance...............
.
■■
on
to
,
\
Mortgages
>
/
209,137,301
Reserve for dividends left with the
Utility
Industrial and Miscellaneous......
First
Annuity Contracts:
\
;;;7
*
particular interest to policyholders.
A
copy may
a
number of subjects
be obtained by writing
the New York Life Insurance Company, 51 Madison Avenue, New York 10, New York.
'
U
(I
12 .(1428)
f*
«r
,
COMMERClAti '& FINANCIAL; CHRONICLE
THE
,Thursday, April 1, 1943
underwrite
Central Illinois Public Service
Data
Request
on
1420 Walnut
St; '
44 Wall Street
'
.
'
held
been
unavailing. In
was
an
Philadelphia 2
New York 5
eleventh hour maneuver the City
PEnnypacker 5-5976
WHitehall 3-7253
Philadelphia petitioned Federal
District Judge J. Cullen Ganey to
order Philadelphia Transportation
Company to distribute rebate slips
to all riders paying the increased
fares. The petition was granted a
matter of hours before the higher
Private
Wire System between
Philadelphia, New York
Angeles
and Los
Philadelphia
of
rates became effective and added
greatly to the confusion incident
Bank & Insurance
thereto.
2039, Pfd. St Common
Cheitnul
Phila. Phone'
New York phone
WHitehall 4-2400
Teletype PH 257
-
-
dividend action
riders
would
tunity
of
tions.
The
in
Regular
voicing
oppor¬
their
objec¬
P.U.C.
has
-
•v
values
that
and
this
.
the application of
which:
after
to
vanced at
-i
operating
to
$4,-
for
costs
four
production reached
of
<•
222,804
ad- '
sulted
in
in
$3.02,
1946.
be
have
peaks in
re¬
share earnings of
preferred ;dividends,
annual rate
maintained.
Directors
per
after
require¬
inventories and
Warner
of
Net income
higher
that the present $2
can
1947
years.
new
capital
receivables. It is hoped, he said/
shares
each
large
finance
1947. Net sales last year amounted
to $57,252,636 compared with $46,-
the
Feb.
granted
were
in
share
per
reminded
conservative
a
policy is indicated in
ments and the need of funds to
of
1947,
dividend
common
has
Co.,
stockholders that
Both dollar sales and volume of
greater rate. Higher
a
$1.80
the preceding
Pas¬
increased
Coal
tion
amounted to $1.95 per share and
report.
$686,000.
its
on
•
G. H. Love,
—
President Pittsburgh Consolida¬
view
March 12. Dividends in
on
income,;
$61,428,830
rates
wage
of
revenues
year,; but
,
annual
of 55 cents
a year ago.
m
PITTSBURGH
the improvement shown in
Scott Paper Co. paid a
the
approved
1947
taxes,
198,180
involves
-
ff
Pittsburgh Consolidation Coal
dividend
continuance
a
during the current week.
with
98.5%
a
compares
ft
Paper Co.
Reflecting
common
disclosed ■*. net
senger
formula in
a
the
on
directors
company's
long
per-
Scott
com¬
and $1 on the preferred. The con¬
tingent 3% interest on the com¬
pany's 3-6% collateral trust bonds
was declared, payable
July 1.
car
the
both the
on
at 96.3%
This
—
month ago and 103.6%
'
■-
preferred was deferred.
annual
dividend * rates
have been 80 cents
holding
which
have
and
mon
The
missjble fare increases can be
determined only by the rela¬
tionship of earnings to property
•;*
.Vv
without
maintained the stand that
Street, Philadelphia 2
Locust 7-1477
fares
hearings
public
;■
H. N. NASH & CO.
1421
pending litigation of the com¬
pany's new fares, consideration of
City charged the Public
Utility - Commission with bad
faith in permitting
P.T.C. to
increase
Philadelphia Transportation Co.
3-0s
tors meeting' held March 23, it was
announced that "in view of the
The
,
ended
$3,497,107, equivalent to $2.23 per
share, against $3,099,510, or $1.98
per share, for 1946. For the parent
company
only,
not
reflecting
credits and charges to surplus, net
income was $2,858,624 compared
with $2,388,013 the preceding year.
Samuel's appeal to the Pennsylvania Public
to postpone<£Dividends Deferred
the effective date of the higher
schedule until public hearings had
At the P.T.C. Board of Direc¬
CORPORATION
Earnings Up
year
United Gas Improvement
Mayor Bernard
Utility Commission
BUCKLEY SECURITIES
the
Dec. 31,
Co. and
subsidiaries report net income of
Philadelphians are paying the 10 cent cash fares on trolleys and
subways and 12V2 cent fares on buses which became effective March
21—but with papers attached.
operations
Despite the
problems posed by dwindling coal
supplies, steel producers in this
area expect to maintain operations
*
*
G. L
U.
For
DuMont Laboratories
stcct
PITTSBURGH
*
P.T.C. Fare Rise Backfires
•>
Gruen Watch Company
unsubscriDea
any
shares.
Pennsylvania Brevities
Portsmouth Steel Corporation
of
Conjpany
Warner
declared
15
common
stock,
to
of
stock
Company
cents
the
on
payable April 15
*
record
April 1. The
last preceding dividend
was
30'
cents on January 15. Company is
expected to complete its $4,500,000
expansion and modernization program, all of which has been £i- *
compared with $2.07. These results
nanced out of earnings, by mid¬
the fact year, I following " which
stock¬
large towel- holders are
anticipating the adop¬
costs were somewhat offset by * making:^ plant
at
Chester,
de¬ tion of a more liberal dividend
the elimination of overtime in
stroyed by an explosion in 1946,
policy. Operations in 1947 were at
was not restored to service until
certain departments.
/
^
new
high levels and produced/
late 1947./VV/:
I'y/v
earnings of $3.33 per common
ll, 1947, followed by
an
increase
in
18.
Higher
fares
Feb.
on
4
achieved
were
that' the
despite
company's
-
which public sentiment, as such,
is irrelevant. Commission coun¬
Central Louisiana Elec.
Empire
Southern
P.U.C.
Nazareth Cement
' "
Pittsburgh Rys. Co.
is
Legislature
«
Warner Company
directed
Byllesby & Company
PHILADELPHIA OFFICE
/Teletype
RIttenhouse 6-3717
,
r
«
of
the
of
the
it
ordered
fare
its
the
initial
increase
PH 73
Cambridge Bldg. 3s 1953
1500 Walnut St. 6-1950
al¬
P.U.C.
hearings
to
on
begin
in
j /
cubic
the
foot
of
justify its claims in
the higher schedule
of
that-
.
the
mitting it
to
will
If
stand.
put
into
per¬
effect
so, the rebate slips
distributed in com¬
being
pliance
P.U.C., order
be
with
the
Federal
court
the
natural
from
gas
Southwest
field, 1,280 miles
had been delivered to the
Philadelphia Gas Works Co. De¬
livery during this month will be
approximately 100 million cubic
feet. For the present, natural gas
will be mixed with the manufac¬
officials have
to
of
away,
commercial
able
operators
Big Inch
and
Little
Inch
gas
pipelines, announced that the first
be
tured
product
for
domestic
stated
Martin
W. Clement, President
Pennsylvania
Railroad,
an¬
nounced
that
the
company
has
ordered 114 additional diesel-electric locomotives and 2,300 freight
cars
which
will
cost
approxi¬
mately
$27,500,000.
This
will
bring, the
company's
post-war
modernization
of
Of the
company
that
the
in¬
troduction of natural gas to Phila¬
delphia was necessary to relieve
Mr.
-
Philadelphia
Packard
Stock
Active in
Wire to New
*N.Y.
Phone
COrtlandt
7-6814
CHAPLIN
AND
York
share
City
COMPANY
Members
New
the
new
.
A
/
of
ing the
one
preferred
for
held.
common
registration statement
the
(1 Broadway
NEW
ration
cover-'
issue is expected to
effective '. about April
new
13, which will probably also be
record
Bowline Croon 9-3987
Bell System Teletype—PQ 473 :
'
subscribe.
date
.,aqd
First
for
rights
Boston
Smith, Barney
negotiating
with
Co.
&
the
are
company
in respect to forming a
group to
1500 Walnut
St., Philadelphia 2
/Phone Klngsley 5-1716 | Tele. PH 677
Branch: D:me
ALLENTOWN
/
^Ointlc City
Elec. Com.
Chemical Com/
'J®r;
'"J Pub.
Pnlla.
Serv. Com.
Richmond
Cedar
Roberts A
Wks. Com.
i
Price-Earnings Ratios and Yields
123 Public
Elec. Co. Common
trains will be
&
Light
U
;
•
-I The
50th
annual
E> H. Rollins & Sons
Incorporated
PEnnypacker 5-0100
im Walnut St.,
Philadelphia 2
| New York
;
*•
&
new
revenues
rec-
is
chandise
still
carrier
share
Co.,
were
for three
serve
years.
'
(Special
to
The
Financial
—
Chronicle)
Walter
J.
has become associated'
Salle
Street, members of the
Chicago
Ames,
Exchange.
Stock
Malatesta
Mr.
formerly; with
was
Emerich & Co„, Inc., and
(Special'
•;*.;
to
The
Financial <Chronicl®>';
Thomas
and
the
v/ith
minous
55
combined.
F,
Mangan are ncrw
Herrick, Waddell & Co., Inc.,
Liberty Street, New York City.
TTtt
Continuing Interest in:
American Meter Co.
t
'■»,
'
i
fj
••
Grinnell Corporation
Cannon Mills, Inc. Class "B"
Central Soya Co. Inc.
~
~
/
*
-"liipt
Southern Advance Bag & Paper Co.
Talon, Inc.
STROUD & COMPANY
^
^
^
Boston
Chicago
San Pranclsco
;;.U, it
ESTABLISHED
Incorporated
-w.
123 SO. BROAD STREET
120 BROADWAY
PHILADELPHIA 9, PA.
NEW YORK 5, N. Y.
PEnnypacker 5-7330
REctor 2-6528-29
Allentown
;
Pittsburgh "
Lancaster
Scranton
l: *;
CHICAGO, ILL.—Paul Herbert
mer¬
on
Request
P
With Brailsford & Co.
coun¬
of
1914
Boenning & Co.
Members
Members
'
New
Philadelphia
York
Curb
Stock
Exchange
Exchange
/:/.*
(Associate)
1606 Walnut Street, Philadelphia 3, Pa,
,
•
New York Telephone—COrtlandt 7-1202
Telephone PEnnypacker
6-8200
•
11
to
trustees
Walter J. Malatesta Nowv
tonnage of anthractite and bitu¬
coal
appointed
Herrick, Waddel! Adds Two
largest
in the
exceed
now
D.
Moreau
orig¬
was
shipments
Jr., .Botciier
R. C. Harvey & Associates.
$1.28.
the
.
and
Sherrerd,
La
anthracite
an
^
Butcher,
y
for 1947
Per
Reading
inally considered
and
'
with Brailsford & Co., 208 South
$8,215,649, equal
common share after $
were
Merriam B.
Co.; Secretary:
Malatesta
of
was
dividends.
F.;!w
Snyder & Co.;
E.
CHICAGO,; ILL.
$116,760,042. Net income for'
road
Geo.
Brown, Brown Bros. Harriman &
J
report
Reading Co. discloses
year
Jr.,
Barthold.
Co.
Reading Company
-
■.
prospectus
Bought—Sold—Quoted
f
ing officers of the Exchange wer$
appointed to setve for the ensu-.
.♦'''/f.'i
•
*Offered only by
PHILADELPHIA,/ PA.—At the
el
—
■/".
Utility Common Stocks.
on
in the
power
•/'.p.V
Copies
Mender Common
^
i
regular meeting of the Board of
Governors, March 17, the follow¬
der,
Reporting that
its post-war . expansion
program
has resulted in an expenditure of
about $35,000,000 to date, Penn¬
sylvania Power & Light Co. states
that it plans to spend an addi¬
tional $100,000,000 through 1951.
try, freight
/
commit-
companies/
Exchange
Appoints New/Officers
Howard
Power
anthracite
Valuation and Appraisal
Finance
and
of the
ila. Stock
&
Penna.
Although
CITY OF PHILADELPHIA BONDS
j
Executive
tees
Harrisburg."
preferred
RAILROAD EQUIPMENT CERTIFICATES
Bld^,, Allen town, Pa.
has been elected Chairman of the
Treasurer:- H. Gates Lloyd, Drex- *
earnings in 1946
;
Chief Ex¬
as
by diesel
to $3.87 per
Valuation and Appraisal
of his duties
passenger
the
Available Publications
v
lieved
ecutive Officer at his request and
handled
of
.'•I
securities
Otho E. Lane, Chairman of
Board,
Fire
Association- n
Group, Philadelphia, has been re¬
through
ord-operating
Incorporated
Mr.
Vice-President: George E. Sny¬
non-electrified territory west of
to
Corp*,
STOCK EXCHANGE
investment
the largest.
are
; '■
ing year:
i
TORK, N. Y.
Grant 3900
PHILADELPHIA
in
the
become
York, Curb Exch. (Assoc.)
PITTSBURGH 22, PA.
a
members
|
Pitts. Stock Exch.
10th Floor, Peoples Bk. Bldg.
the
planning the issuance
107,383 shares of preferred
of
-;
the
is
each 12 shares of
N. Y. Stock Exch.
f
%
the country. "By May this
year," he said, "we expect that
our
important
east-west
stock to be offered to its stock¬
Bldg., Philadelphia 2
If!*#?
PH 375
Corp.
holders
Direct
that
installations
in
PITTSBURGH—It is reported
that Alleghany
Ludlum
Steel
Issues
Exchange
•
all
Western Pennsylvania
Samuel I. Phillips & Co
stated
diesel
in progress
now
v/z"■
Allegheny Ludlum Preferred
Hershey Creamery Com.
locomotives, 54
new
Clement
company's
followed expansion of local facili-
/v< 'V""
v
.
cost
the road's Altoona works.
Transportation Issues
Trading Department
a
/ /
Works, Eddy stone. The
2,300 freight cars will be built at
shortage and to avoid the
raising of rates which would have
1
K
v
will be built at the Baldwin Loco¬
the fuel
ti es.
114
to
program
$173,500,000.
motive
Gas
-use.;
and
-
R.R. Orders
Penna.
.
of
order will be valueless;
Lehigh Valley RR. Annuity 4Vjj
Members
Corp.,
•
ft
J
Last week Texas Eastern Trans-
mission
Informed observers believe that
the transportation company will
now
Rittenhouse Sq. 5V2-1950
In
criticism
by
action,
the
Federal
challenged.
against
hasty
support
Phila.
be
has
and
1900
litigation
Philadelphia April 1 and 2.
Exchange Bldg. Phila. 2
Telephone
will
recognition
leged
Stock
that
and
Texas Gas to Philadelphia
State
the
involving its rulings should be
brought in State courts. Thus
court
Stromberg Carlson Co.
of
arm
an
the intervention
Sterling Motor Truck
H. M.
share.
sel is expected to argue that the
Gas
Bell
>
;
~
'
System Teletype PH
30
p!
Volume
167
Number 4686
•*
THE COMMERCIAL
FINANCIAL CHRONICLE
&
(1429)
"w
"
Wisdom for
:
V'
"■
•-
Colonel King lists as
CLUB
OF
'SYRACUSE
"
'
': ":i
'
:
'
j
/ '• '/
on
principles to be followed: (1)
ld .1
a
c»
c
o
m
-
s
c
s
io
n
o
n
i
v e
1
c
the
Heaton
come
.
President—Edward L. Emmons, Reynolds & Co.
.
Vice-President—Everett W. Snyder, E. W.
V Treasurer—Francis Q Coulter,
;
p
^
Snyder^ Co.
;
i. Board of Governors—Edward
V
Congress
i
t:
began
J. Bullock, Reid-Bullock Co.; Mar¬
&
man
;
lifted
from
volume
to
dinal
there
earnings and
management.
the
positions and
:
"
.
conta¬ C; (4)
the
SUPERVISION Of holdings
the
of
four
are
These
new
guiding principles,
'
car*
maximum
the
keep in mind and
bull
new
benefit
market.
.
from
.
..
'
*
-
NATIONAL SECURITY TRADERS ASSOCIATION
•-
*>'A
'
'/"•
Paul I. Moreland, Moreland &
Co., Detroit;,
Chairman of the Special Legislative Committee of
the National Security Traders
M'
Association, Inc.,
membership of the
that the complete
as follows:
announces
committee is
.,
;.
I
-
Malon C. Courts, Courts & Co., Atlanta, Ga.
Richard A. Gottron, Gottron, Russell &
Co.,
Southern California Edison
Company-1947
Cleveland, O.
/a
-r.,v:"'"
f
Oliver B. Scott,
Maxwell, Marshall & Co., Los
.
Angeles,
Calif.-..j
5,'Sumner R. Wolley, Coffin
-
-
Paul
L
& Burr, Boston, Mass.
Moreland, Chairman, Moreland & Co]
Detroit, Mich.
:
In addition to the five members of the
commit
—
^
ui inc cumuiHr
z
V:
.
'!
Paul I. Moreland
tee, each affiliate of NSTA is designating
rooonfotiwo
fn
a
rep-
J
resentative to advise with the committee
proper.
names of these
representatives will be an¬
nounced as soon as their selection is
completed.
...LU
1..
_
The
•
phia; la - redoubtable
in/his;
local
;..-s ajld Brokers Bowling League, will
con-
pin-smasherr
Gross Revenue of the:
/v Plowt
'
Harry Fahrig, Jr., Reynolds .& Co., Philadel¬
.
v.
/v/ Company in. 1947 was $86,267,983, an increase of a
INVESTMENT TRADERS ASSOCIATION
OF PHILADELPHIA
.v
Expansion ... /The Company s plant budget
for 1947 was approximately $52,500,000,; and the
$12,138,745 or 16.4% over 1946. After all operating/ / ' work programmed was substantially all performed.
/ expenses, including taxes and frequency change ex- :/ The plant budget for 1948 is $63,594,637.
;'.,,;TvPc6se»
after payment in full of all dividends on /
:
<
preferred stocks,-the het income was equivalent to '';
1^48 BUDGET
,
$20,941,609
y
/ > $1.95 per share for tht common stock. ;
' : 'r;/ Stcwn
Scewn Electric
Electric Generating Plants /V *
Gross and Net Income:
«
)
\
-voy a
v
hopeful group of keglers from Philadelphia
to New York
on
The tabulation below of gross revenue
April 18 where they will engage
/
,a*team*chosen-from- ^any'^ cjcack Jumbermen.
•
The
the
friendly
.
is'.scheduled-
pogrom/ which
common
reflects the
'•■ri-;
for
night preceding the Stany. dinner, has
for the
something
of
annual
an
stock for the five years
-
Philadelphia has yet to win
a
series.
SECURITY
Harry Fahrij, Jr.
.
TRADERS
1946
.
457,828,029
•i
/
.William C. Jaokson/Jr., President and
of the
urer
First
Southwest
Texas, lias been selected
nicipal/ Committee
as
of.
-
| -" Traders Association according • to word received
R.
Victor
Mosleyr President.
,
of the Investment
'}
Mr. Jackson
1.83
.
.
A
.
■w
C.
has
tacuzene
become
associated
with Hogan and
Farwell., Inc. He
Hvas
partner
formerly
Browne
&
a
Fleming.
in Ross,
"
«
Investments
Lapham Joins Staff I
-
Cohu
& Co.,
merly
in
under
the
firm
of
name
•
'
v
'if
H.
.
jj
Total Assets
A
for¬
himself
B.
.
Company's generating facilities at December 31,
was
1,394,180 kilowatts, compared with 1,308,-
450 kilowatts in
j
19^6,
it t
•;?»'
an
increase of 85,730 kilowatts.
Generating facilities of 299,000 kilowatt capacity
presently under construction will bring the Company's
.
.of 1948, to 1,561,180 kilowatts, and to 1,693,180 kilo*
watts late
in 194%
New Business
•
.
.
»
»•
'Is.6
.
Vs,
.r
--f
i
1.. The total of new business signed
in 1947 was 639,000
revenue
x^: ■■ '■
DECIMKt
u
1
»
»
*
»
•
•
•
*
.
,
»
J
.
>
•
-
i
•
•
estimated annual
an
/
31,
1»«7
'
$430,422,951
*
#
H.P., with
of $9,272,000.
Liabilities
"t
*,
.
.
Capital Stock Expense
was
for
.
Deferred Charges
Syracuse Sav¬
business
Laoham & Co.
$63,594,637
,
CONSOLIDATED BALANCE SHEET
*■
'
SYRACUSE, N. Y.—Beverley H,
has become associated
ings Bank Building. He
.
and-Other Assets
Current Assets ,'i;
Lapham
with
6,609,290
.
!
»
Of Cohu Co. in Syracuse
Megan and Farwell
.
Departments
/ /iTotal 1948 Budget
yp'V
s.nii
H it ill '*.
Electric Plant
/ - CHICAGO, ILL.—Michael Can¬
All Other
-
.
Wf*.
Assets
B. H.
14,663,972
continuing expense of the Com-,,
Jackson,. Jr.
M. Cantacuzene With
_,
fifty-year record low rain-
CONDENSED
W.
y
below- the 1947 level.-
i
o'.l
2,892,683
.
■
snowpack condition in California in 1947-
Bankers Association. /■;
:
9.307,844
Distribution Lines i,«
1947
Company of $10,000,000 in 1948; Such abnormal: I"
year
»
.
of the
1-95
pletion ub rl948, ait expected to reduce net income for
■/ the
4.734,403
Generating Capacity... The operating tapacity
,
pany's frequency change program, scheduled for com¬
was
»
i
.
'>.•
/
of all other charges, including
dividends on preferred stocks,
^fuel costs, and the
formerly Chairman of the Texas Municipal Com¬
mittee
;
74,129,238
86,267,983
'
from
'/ $1.43-//
1948 involvesestimated increase in fuel expense to
National; / Security
is very well known in municipal circles and
Common Slock*
* After payment
fall and
the
.
V
.
.
Forecast for 1948
Corporation, Dallas,
Chairman of the Mu¬
the
.
,
i;"''.-;-
Treas¬
«/•£
Per Share for
■
'.V:
'*64:686.947
*»'^450,637
}947 />;.
ASSOCIATION /
Earnings
■
"
*>'Rettnue
pJt'f
1944
,
'■
-»,
Distribution Substations
*
Pit
194$, %
NATIONAL
.VV-.A
-Cross
1943
'
Transmission Substations
194-3-1947,
4,445,436
Hydroelectric Generating Plants
Transmission Lines
be-
affair, although
'
steady expansion which has occurred in the
Company's operations. ^
v
1come
and earnings
Stated
Capital and Surplus
11375^29
Bonded Indebtedness
32,057,010
Current Liabilities
*
•
.
.
.
.
*
.
•
*
«.
,
43,831,701
.
.
■
•
»
•
*
103,617,881
.
«
•
»
.
*
»
•
»
J $484,667,913
Other Reserves and Liabilities
.
.
.
'
rt
f.
U
i i&i'W
*1 \ u
138,000,000
.
2,486,321
?
.$190,899,241
.
Depreciation Reserve
Total Liabilities.
'•»
.
.
8,326,402
$484,667,913
care¬
fully followed, will bring success
and enable the investor to realize
Co.; George W. Mason, and Norman C. Schmidt, Blair F.
Clayf
baugh & Co.
i
■
(3) DIVERSIFICATION of pur¬
chases in order .to minimize /risks
principles that the shrewd
investor should
shares
650,000
coming
market
bull
industrial
the
the
With
8*4 points and increased
averages
the
to
message
,
March 17, the rally
that
best
financial
in
order
to
a rising stock market, but
check-losses, take
psychology of the trader has profits and be on the outlook for
any
.sudden
changes that might
changed and the public will soon
recognize the superiority of equi¬ affect the market objectives of
profit
or income.
ties to cash.
*
'
:
>
.
Truman's
on
the
strongest
the
Following
liquidation.
President
/
shall .W. Day, Geo. D. B. Bonbright &
Co.; Drew G. Eastman, East-1-
ef-<
to
with
gion of
Col. Herbert G. King
had>
v e
immune
remained
that'
-V;'/
Secretary—Charles T. Heaton, W. N. Pope, Inc.
:
t i
e c
/
Syracuse Trust Co.
u
end
.(2)'SELECTION of the Issues
,
.
confir-»
mation
Charles T.
gave
then to sell when they reach over¬
!
priced levels.
the tape and recognizing that pro*
longed dullness marks the end of
a bear market and that a sudden
rally out of quietude indicated
the stirrings of a new forward
movement. So far the public ha$
ses- <
sv1
'/,■..
»(1). TIMING purchases so as to
buy when certain issues are sell¬
ing- at under-priced levels am
rule of never arguing with
worn
-
used will bring rich
properly
rewardsr
spread rapidly.
\
j
1 Speculative success comes only
to\ those who follow" the timcT
<
panying
the
foreign sell-,
irig". The pain-;
fully dull
if
news ap-
peared to account for the abrupt
-upturn, but the speculative belief
that a major turn was at hand
in
o w s
million. No
to over two
-
the bad news,
Snyder
(2) selection; (3), diversification; and
timing;
^
the
the face of all
W.
.
devastating bear markets in history eame to a close during the third
It terminated as undramatically as it had begun and most
the windup completely. The tip-off was the extreme dullness that accom¬
traders missed
panied
o
E.
•
March, after 22 months.
br ea kvtheif
Emmons
►
■
-
,
Cne of the most
week of
Averages
L.
■' ^
\
-
,
,r;
(4) supervision.
failure of the
|5dw J o n es
Edward
;
Member, New York Stock Exchange
*
.
The Bond Club of Syracuse held its annual election of
officers
Feb. 18. The following were elected to serve for the
coming year!
Bull i Market
a
By HERBERT G. KING
-
-
-
"
BOND
13
TraWBHFV&in
8,319390
■
'
the
J
~
—
THE COMMERaAL
14 " (1430)
FINANCIAL
&
"■
■
ift"
'
r
''.
...
It
announced
'
his
resign
by
appearing—during
vision to take
for
the prac¬
Member
1948:'
and
tice of law in
■
.■
'
TABLE
York
New
City
Mr.
who
.
Treanor,
was
attorney
Brokers'
Securities
Loans
Loans
under the Na¬
tional
Jan.
Indus¬
1
A
A,. A.
i
t
c
later
special
Treanor,. Jr.
coun¬
Federal
investigation,
telephone
of
service
the
in
its
entered
SEC
the
in
and
ing
Holy
Cross
from
the
School
Division
Exchange
He
1941.
in
College
Boston
in
practice
graduated
t
in
He
Desmond T. Barry,
.
in the American
;
The branch at
quarters
at
1
zone.
Heidelberg, with
Friedrich
Elbert
Allee, is the third Chase location
in
Germany, two other offices
having been opened at Frankfurt
and Stuttgart within the past four
months.
W.
H.
Promann
is
in
charge ,of the Heidelberg branch.
Tota!j
quarter of 1947. All classes are
or 2.5%.
Treasury bills, cer
*5,601]
715
5,581
Offsetting this loss has
5,88.1
'ncrease in rates
on
5,634
and
as
5,775
stiffening of the rate
notes
and
3139,000,000
down
5,85*1
4,029
863
5,64?
267
4,149
766
5,711
Investments" average fractionally
below their totals of 1.947 first
stantially the same; interest rates
on
Government obligations are
11 446
267
4,172
quarter. "'Total Loan* & Invest¬
somewhat
;
267
4,157
509
1
7-j.
725
816
.
....
f 3,949
292 11
1
5,76<j
728
5,612
783
; 5,711
$157,030,000
certificates,
TABLE
FIRST
II
1.
V/V'vVif I:11 i.'l;)'
Securities
Loans
Treasury bills
well as some
ments''
253
422
252
21-'—-.
468 1
1/ 248
~
500
4
25_...
Mar.
:
3-*,-.
1
5,290
111
5,215
1,106
5,208
5,164
.5,181/
239
fill 5,174
232
5,160
IS
,
•
1,081
7,261
1,036
1*,G55
7;087
7,245
-I' 7,023
7,047
■'
1,030
1,015
il;
12 Wk. Avg.
240
572
1
1,034
5,249
Average total loans outstanding during the first quarter of this
year were $1,385,000,000 higher than during 1947 first quarter; percentwise they are approximately 24% higher.* The principal gain
average 33%
Loans to brokers and loans for carrying securltie:
are
moderately lower than a year ago, while miscellaneous loars
comprising real estate loans, loans to banks, etc., average $290,000t00(
I
QUARTER
J-
!
.
Total In¬
Obligations
12,013 I'¬
ll 11,833 1
vestments
2,783
8.—
2,621
2,771 4
22
2,885 1
2,574
5
Feb.
11,724
11,786
9,212
.
19—'
26—.J
-!i
r^?//
13
9,150
26—1 2,111
5_—
.
.
1^12,05Q .1:
9,204
12
>-11,965
9,165
9,215
Mar.
BROADWAY, NEW YORK 5, N. Y
;
2,582
19—i
Laird, Bissell & Meeds
9,194
:
2,268
2,223
.'
12
Request
9,212
15-i.—
29
of New York
9,230
11,483
11,440
9,207
i
2,413
9,208'
11,323
11,621
2,428
9,150
11,578
2,662
9,222
i/1 11,884
2,292
9,279
1:111,571
9,204
11,713
i
i—
Wk. Avg,
2,509
,
'
Tot. LoanS
&
18.878
12,880
18,513 1
.13,012:1 11- 18,614
,13,087"
v
12,757.
18,674
1 18,639
12,810"
18,444
'12,504
12,334
1'
•,
and
of
violence
Two
;
r
-
Emil
New
y
18,473 1
i ,,••/
■
operations
of
was
entrance
in
.and -12
ensued
and,
45
4
provocative
acts
glad
of
J. S. Rippel&Co.
Established
18 Clinton
1891
St., Newark 2, N. J.
MArket 3-3430
N.
Y. Phone—REctor 2-4383
CHICAGO 4-
HUbbard 2-0650
BS-297
,
.•
FRAnklin 7535
,
CG-105
PRIVATE WIRE SYSTEM CONNECTING:
Michigan 2837
'
LA-1086
NEW YORK,
Rusv Building
TELEPHONES TO: Hartford, Enterprise 6011
Providence, Enterprise 7008
Portland, Enterprise 7008
Detroit, Enterprise 6066
\
are
this
..
and in
I
-••<••1 yl:
-
a
im~
1 ^ .{.v
uninterrupted.
1
!
-
re¬
kind
on
•
that
of
most
not
were
em¬
.
demand by the union for a closed
or union
shop.
On
31,
it
Wednesday afternoon, March
was reported .that
pickets
thrown
were
Street,
out
saying: "Brokerage em¬
ployees in this building be ready
for a general strike of all Wall
Street
and
the
was
brief period
a
sus¬
at the
soon
partially
According
Mr;
has
was
to
every " precaution
taken
to
maintain
of Ithe
peaceful
exchanges.
It
reported that about 6.75 of the
Emanuel, Deetjen & Co., 52 Wil¬
change,
announce~that
ed manager
the
firm's
vestment
of
and
underwriting
department/
1 Mr.
has
Phillips
been
en¬
the
.in
banking
and
broke rage
field
with
Tucker, An¬
thony & Co.
from
1928
1946,
for
to
banking
were women.
and
the
to
The question
of
through
Service,
with
union-
deavoring
that
Meanwhile, the Fed¬
Mediation
the
exchanges
officers,
settle the
is
en¬
disputes.
at issue is not only
increased
wages
but
a
l-llll
year
employees
striking, about one-fifth
Spencer Phillips
except
a
adviser
strike, and
•
in¬
he
on
Spencer
Phillips has
been appoint¬
ment
out
financial
liam Street, New York City, mem¬
bers of the New York Stock Ex¬
when
were
.
Spencer Phillips With
Emanuel, Deef jen Go. 1
New York Stock Exchange's 1,300
of those
entire
district;";
investment
for
Pine
70
notices
the
was
around
and that they passed
fected
consultations
CLEVELAND, PHILADELPHIA, ST. LOUIS, LOS ANGELES, SAN FRANCISCO
year
March 27, and, with aid of
gaged
eral
SF-573
banks
of instances good
provement may be shown.
af¬
YUkon 6-2332
BOSTON, CHICAGO^
equal those of last
quar¬
number
ex¬
was
SAN FRANCISCO 4
LOS ANGELES 14
-
the
of
1 The o-nly section of stock
change business which was
operation
Wall Street
231 S. LaSalle Street. 210 West Seventh Street
were
ployees of the Stock Exchange.
Schram,
NY 1-2875
strikers
any
know
to
involved
beginning, but
W
BOSTON 9
ex¬
arrested.
also
s
10 Post Office Square
the
Schram, President of the
pended
INCORPORATED
WHitjshauu 3-0702
normal
a
by the walkout,
quotation service, which
GEYER & CO.
67
conducted
the
part of > the Exchange
and
there will be none." -He said he
been
NEW YORK 5:
order, both
Stock Exchange, fol¬
lowing the street fracas, issued a
statement expressing "deepest re¬
gret" because of the violence, and
adding that "there have been no
was
1
'
the
York
those
BANK and INSURANCE STOCKS
I
re¬
strike
policemen
18,410
i.
'
the
injured,
were
restored.
*
by
unions, i Despite
prevent
18,586
12,762
earnings
-t
'
ago.
Exchange and New York Curb Exon
character. On Tuesday, March 30,
a number of the pickets
attempted
:11
WHOLESALE MARKETS IN
\
enlarged
were
business
18.365-
Teletype—NY 1-1248-49
NEW JERSEY
Stock
of the exchanges
'
.
exchanges
18,334
.
5
,
and
1
1
year
On
1
•
a
j
12,653
12,694
of
5
12,689
Telephone: BArclay 7-3500
(L. A. Gibbs, Manager Trading Dept.)
!
18.224
18,191
12,955
,
>
in¬
are
;—
ported to have received injuries/
i
18,279 1
i
1-12,453
*
Investsl
!
13,077
also
likely that first
seems
ill'. 1,1 Hi 11
change buildings by lying down in
front
of
the
doorways.
When
forced to get up by the police,
1947
Total U.S.G.
sub¬
are
here of seamen's unions, began mass
picketing before- exchange
premises.
Violence results in injury and arrests, but operations
1
to
,
Bonds
as
...
picketing, however, and the sud¬
($000,000)
1—1
quar-
words,
higher,
of
mod¬
are
deposits
lower;
and
up
mem-
denness
These tables also show
f
TABLE. Ill
other
cruits from members of the AFL
1 /: -V1; yllv,1 //I/\1l/l •::f
With regard to the banks' portfolios of Government obligations*
FIRST
$21,-!
change fail to report for work
seamen's
higher.
'Total.Loans & Investments/'-
are
holdings
Exchange Employees Strike
ngs,
been in commercial and agricultural loans, which
above last year.
the comparison is, shown in Tables III and IV.
up;
March 27, without formal notice, the
long threatened strike
)f the United Financial
Employees, Local 205, AFL, against the New
York Stock and the New York Curb
Exchanges became a fact. Before
he exchanges opened for
operations, picket lines were formed at the
mtrances of the exchange buildi¬
7;095
..
.
In
year.
1; Workers of New York
'I"■"'
It
ter
during
—
7,038
7<10C
7,14C
.
are
those
over
Clearing House Banks
11"1 -''l-i'l :fJ1l;i1:1:
'
1"
commercial
up,
operatmg costs
payroll charges have increased
and
i
7,085
1,014
1,084
11,009
,.
loans
terest rates on commercial loans.
On the other hand,
'
"
•
.
$21,413,000,000
this
ter
down, miscella¬
agricultural loans
erately
6.7%
or.
408,000,000- during* th£' first
7,037
61992
7,065
A
1,00-3 .I1-
5,267
1#1 238
640
991
7
-
5,324
i
Tptai
LoanF
a
,964
"
■
5,343
235
•
10— 11 771
1 589 1
17
•
24
5.332.
'. 5,327
241
••
<-
•
iveraged
'/ •'
Misci
Loans
Agric. Loans
247
446
-
Si
are
total
With regard to deposits, weekly
of
"demand deposits"
of
New York
are
loans
neous
Government obligations
$1,228,0Q0,000.
are
curity loans
and
Govern¬
on
the first quarter of 1947, and
Commercial
..Loans : &
.
an
totals
■■
1948
been
bonds.
ment
5,710
'Vi'
'
; "
QUARTER
1.7%.
or
"
"
744
.:
1-488
Jan.
change
no
year ago.'
274
Feb.
has
substantially
I1
I f
To summarize: brokers' and se¬
a
530
14
1
is
from
579
ll/Qll-111
>
there
by
5.5%?, while bonds
or
26—
;
71.'
lower
are
moderately below the first
down only approximately
$300,000,-
average
000
733
•
Ctfs. & Notes
SECURITIES
19,701
tificates
Office at 1818 Third Avenue under
Bell
12,608
are
U.S.
<80
11,415
5,80)|
15,6311
•
Treasury Bills
Members New York Stock Exchange
9,047
Governments
684
:*• 7ii
BESSEMER, ALA..—r Carlson &
Company have opened a branch
on
2,370
of
It will also be noted that "Total
'
Circular
Avg.
Holdings
Loans
'
National City Bank
Wk.
766
New Carlson Branch
the direction of Cecil Cosby.
12
\
.
3,968
,
■
19,087
286
y..
Estab¬
offer
19,298
12,040
837
231
will
12,275
10,795
734
656 JA
branch
11,073
8,512
3,924
233
the
2,569
2,283
3,956
739
Germany,
I'- 19,639
295
ill 11
.
ience of Americans there, accord¬
limited banking facilities to U. S.
military and authorized personnel,
including those of allied countries,
19,285
12,394
816
28
authorities
in
Washington, and
the U. S. Military Government in
12,198
11,180
-/y"i-
19
Jan.
the
11,039
8,526
8,504
2,654
724
235
of
.8,530
2,509
3,913
584
here.
19,698 1
19,685
1
9,085
29-3
5
conven¬
approval
12,558
10— i—
...
.
-
12,424
17_.
24—:
19,723
11,278
3—
1
19,99-3
11,394 •'••11'
—
25.. -il 2,193 i; 1.
■
19,850
12,958
12,623
799
18
bank
9,191
.
11,455
12
berg,
the
2,203
1.
756
566
the
18.1
11,777
9,189 1
289
11__._
with
9,219
676
Bank has been opened in Heidel¬
of
-1/1
5
Wk. Avg.
Opened in Germany
office
2,558
2,266
19,84-2
12,765
3,784
Brokers'
lished
^
—,
higher.
■
ing to word received at the head
9,286
3,848
3,883
,
the
1
Loans
($000,000)
for
4...
11..,
2,285
—
20,175
'I 20,138
.
302
former Mayor
I A branch of the Chase National
'1:111 28..,
'
307
to
Third Chase Branch
11,571
.2,374
_—
,13,138
12,850
13,073-
29,8
of Hastings, N. Y.
Germany,
Misc.
3,781
•
.
"
13
with
York
11,631
11,875
778
26_—
and
intends
New
& Invests.
9,504
9,501
v .-
726
1/ 19_
in
University Law
1927.
law
Tot. Loans
Obligations
11,911
vestments
9,5.15
1
2,396
—
881
12—.
.
from
1924
Total In¬
Bonds
29—
Mar.
1936
and became Director of the Trad¬
June,
309
Total U.S.G.
Ctls. & Notes
•
Com¬
Commission
munications
~
.
Agric. Loans
3,776
U $000,000)
U.S.
22—_■
Feb.
the
sel for
/
IV
QUARTER 1948
•'
'
'
15
1933,
n
was
1947
Commercial
&
334
1,007
:. 832
8—
trial Recovery
and
QUARTER
<
($000,000)
"S.
U.
a
FIRST
'
I
'
■i-irjlv 21.1
Banks in New" York
City for the first quarter of 194'. j
1 ;•/■■ ■•"'•"<\1'""'1 •' yi
'/1v li/T/'l
FIRST
*
2,127
show? How? Feb.
operating earnings, or indicated earnings, for the first quarter ■1 '1;1
of 1948 likely to compare with those of the first quarter ol a94<m
It may be of interest to compare the situation as to ear run
,1-1
assets, deposits, interest rates, etc., for the two quarters. ' Tables
Mar.
and II, present bank loans as reported by the Federal Reserve Boar,
1-
and
Exchange Di¬
'•
14.1.
net
are
Trading
up
Bank Stocks
—
First quarter reports of,the banks will soon be
the first week of April^ What may they be expected to
on
April 1 as
Director of its
post
^il/i This Week
.1
the
'
<
TABLE
1
Treasury Bills
,
Jan.,, 7_.
Se¬
curities and Exchange Commission
that' James A. Treanor, Jr. will
was
; '
'
By E. A. VAN DEUSEN
1
1 k
,
,
of
Trading and Exchange Divi-'
sion, resigns to enter private law
practice in New York.
r"
Thursday,^ April lr 1948
It.* 1) ly". 1
-V
Bank and Insurance Stocks
James A. Treanor, Jr., Director
iht—Y ti
CHRONICLE
:'f
Quits SEC Post
m-r
was
vestment
in 1946
experience
consultant, he
as one
and
of
as an
in¬
was
in¬
of the partners who
studies',of
the
firm's
department with the
quirements
clients.
insurance
join Kalb, Voorhis & Co.
coordinate
research
by
1
invest¬
as
companies/ Because
his extensive
vited to
retained
of
its
re¬
institutional
'
Volume 167
Number 4686
THE COMMERCIAL
Arthur
,
dent
ment of
significant step toward self-help, as suggested
by Marshall Plan. Says nine nations have joined compensation
scheme and Great Britain shows
increasing interest after initial
reluctance. Under plan, Bank for International Settlements as cen¬
;
;
-
The
77;:
original restricted scheme.
v
European
Group, to
Kiendl
Company.
of
Trust
Program as proposed by the United
insisting all along upon a maximum of
among the 16 participating nations. Euro¬
position.
fi^st confronted with that American
<§>-
'
For
they have
been
considerable
accus¬
tomed
sible
since
immem¬
with
orial
to
countries
in
terms
of
out
g
a
d
r
t
o
broader conti¬
».he
nental-view¬
points.-
there
has
been
gradual
ization
Ernest H. Weinwurm
result
"■
•.
from
the
i?:;7-.,
'
-v.~
those
pressure
has
Five With
^
'7.'-j.
agreement
an
compensation.
for
'•'*
'
•***!
I
Exchange, an¬
registered rep¬
to
Russ
Building,
been
New
York
York
Stock
that
nounces
five
resentatives
its
have
organization
added
to
Hemphill,
Noyes
&
Bank
Building in Indianapolis.
in' the
of
Davies
&
Proceeds
and
was
The
won
tions.
the
of
(Special
to
Chamberlain
Financial
The
Proceeds
retire
to
of-the
common/,
applied to the 1948 j
California
The
Chronicle)
Co.
WING, MINN.—N. C. Lien
lias joined
the staff of L. W.
Chamberlain & Co., Inc., 315 East
is
an
electricity
water
extent
small
and
Oregon
Oregon
and
i
;
.
!—t
u ■!
V:'; ■*' '''!••
■
'
(Final installment of
'
y.M
,
fv
.'iV#
authorized issue of $32,910,000)
an
;/;7.
1 .'■■ •*
/■ /
:'.y'
''
<:■
7,
Pennsylvania Railroad
Equipment Trust, Series S
2%% Equipment Trust Certificates
currencies
,/.t
*
$10,995,000
..
if* i,
.1
..
(Philadelphia Plan)
i
t
,
V
;:
:
im
To
,
mature
annually $733,000
on
each July 1, 1948 to 1962, inclusive
V "!• '**
!''
To be
These
:
v
are to be issued under an Agreement dated July 1, 1947, Supplemented
of January 1, 1948, which will provide for the issuance of $32,910,000 principal amount
of Certificates to be secured by new standard-gauge railroad equipment estimated to
Statistical Bureau, Inc.,
Certificates
as
and Faii child Publications '
jMjf»vduring last I2 months,: jtt
unconditionally guaranteed as to payment of principal and dividends by endorsement
by The Pennsylvania Railroad Company
•
O,
which-fiey^M
cost not
less than $41,137,500.
-
-
-
-
<.
•
notes
slight business recession and weakening in economic and price "
structure.
Say**; war
not imminent, and holds tax reduction will
I*; have stimulating effect on prices and business activity. Concludes
7 economic forces are
Changing in the balance,'' and basic difficulty
!
■M v, •
<
,
i
,
I
V
is still too much production at too high
believe that
little bit like
discussion
a
reading
of
economic
price.
a
tendencies
/
...
should
be
a
•
■/''' '• ;7:/v;-
## has place di>'
them jn
tain
a cer-
■
'
•
-
■
■'
.
First,There
i
situation.;'
job,
you
was
—*
unless' 7*A%
or
to
the Zra dio
moderate
a
h7
v
-I#••'" h
u
first
n
d
two
r
e
d
are
thought to the signifi¬
developments and indicative
gave no
cant
trends of the last
12 months. The
first
thing\ we must have is a
quick flashback" to the action that
has
brought
us
and
where
Last
Here is
of
the
Twelve
a
very
things
attention
at
the
we
Months
;
deserve
"
our
Wh^t I call to
Zelomek
1.90
;
7-
/1957 >
7
■
1959
2.50
I960
2.35.#!!
2.40
7
7
be¬
k 2.60
1962
2.65
•
off
HALSEY, STUART &. CO.
your attention is
a
R. W.
fiscal
Inc.
A.
BEAR, STEARNS & CO.
RRESSPRICH & CO.
had
came
at
time
a
when
BECKER
EQUITABLE SECURITIES CORPORATION 7
7
incorporated
it
and
did
cut
and
most
in
long.
new
,
mid-Summer,
of activity —
value measures,—
high ground by the
R. L. DAY & CO.
that
the
modest
F.
(incorporated)
.
BURR & COMPANY,
ROTHSCHILD & CO.
•
HAYDEN,
MILLER & CO.
!
HUTCHINSON> CO>
THE
*
in
WM.
Quarter represented a
adjustment of any dis¬
will
not
the next time
repeat
a
:
is
E.
POLLOCK & CO.,
JULIEN COLLINS & COMPANY
.
to
themselves
'
said
for
.
7
the belief that:
(a) the economic situation
,,
-
(Continued
on page
*
'
7
as
a
COMPANY
v
" MULLANEY,
ROSS & COMPANY
E. W. & R. C. MILLER & CO.
7. 7" 7
F. S.
YANTjS^ CO.
THOMAS & COMPANY
7"..
July 1, 1947. Principal and semi-annual dividends (July 1 and January 1) payable in Philadelphia or
New York City. Definitive Certificates, with dividend warrants attached, in the denomination of M,000, registerable
as to principal. Not redeemable prior te maturity. These Certificates are offered when, as and if received by us,
Certificates in temporary or definitive form will be available for delivery at the office of Halsey, Stuart & Co, Inc.
The information contained herein has been carefully compiled from sources considered reliable ana, while not guar¬
anteed as to completeness or accuracy, we believe it to be correct as of this date.
To be dated
.•
be
^
MILWAUKEE COMPANY
THE WISCONSIN
INC.
C. C. COLLINGS AND COMPANY
incorporated
f
decline gets under
; '
much
'
KEAN, TAYLOR & CO.
THE ILLINOIS COMPANY
pos¬
decline
there were in the post¬
economy? Or Was the reversal
caused by outside developments
that
INC.
1 FREEMAN & COMPANY
FIRST OF MICHIGAN CORPORATION
the second
full-scale
HORNBLOWER & WEEKS
7,77'
7 j
McMASTER
Why did this happen? Is it
L.
-v
(incorporated)
end of the year.
sible
7
OTIS & CO.
It
by
measures
particularly
were
last
not
short
was
GRAHAM, PARSONS &, CO.
>
HARRIS, HALL & COMPANY
& SON
GREGORY
/This little recession did not go
far
:
CO.
incorporated
United
States exports were at a peak.
fore the Kiwanis Club, New York
G.
:r
'
City, March 31, 1948.
2,55 /
1961
aresubjtqltoauthorizationby tht Interstate Comwierce Commssion.
in any State in which this announcement is
undersigned and other dealers as may
,.
4' f.
lawfully offer these securities in such State.
77 7
,
in which the defense budget
been 14 Va billion dollars. It
year
way?
moment.
Mr.
1956
;
The Offering Circular may be obtained,
circulated from only such of the
7
-
by
2.25
siigntly.
There
•^Address
1955
tortions
are.
brief statement
that
1.55
1950
2.45%
['Issuance.and sale of these Certificates
war
7
2.15 ;
July,
eased
the fact that this moderate decline
completely in the
dark. ,So would we be, in any dis¬
cussion of economic tendencies, if
we
April
I; prices
e
occurred at the tail end of
Of course, if
haven't read
7
l
you
next.
you
e s a
you
guess what
will happen
/'•
between
read,
to
pages,
1954
7
7.
1958
re¬
while
should be able
.
2.05%
1.35
1.15%
1949
1952
be added)
..'7
,
cession in business activity during
quarter of last year,
dropped .'by
about
have been 7W h 01
listening
the
f
to
1953
1951
Unless he has ; the second
done a poor Production
A.' W.x Zelomek
(Accrued dividends
1948
book.
After you have read the first 200 pages,
you should be able to make a reasonable guess about what happens in
the
last fifty.
The author has created certain
characters
and
a
MATURITIES AND YIELDS
7
April 1, 1948.
7-'-v 77
-.7'
43)
y
a
northern California.
•
,f
to
southern
in
,
multi¬
.•>
Power
operating public utility
providing
Avenue.
■>
,
,
bonds will be
incurred
will be
stock
RED
Merchants
#/
at
debt and for extensions and addi¬
Francisco
San
interest.
bonds
indebtedness
Mejia,
of the
members
accrued
the
construction program.;;
main¬
Co.
offices
staff
Joins L. W.
Maurice L. Fogarty, E. N. Gimbel
and A. G. Matzke.
tains
the
of
applied to the prepayment of note,
Stock Exchanges.
in
Indianapolis,
Ind.
The five, air
formerly with
Paul H. Davis &7C0., are Paul
Campbell,
Michael
J.
Duffecy,
By A*w- zelomek*
Economist, International
Chronicle)
New
Economic Tendencies!
.
Financial
hill, Noyes & Co., member of the
to achieve "trans"
-v-"!•
c ""
•
The
to
;SAN
FRANCISCO, CALIF.—
John C. Poshepny has been added
It. repre¬
;
expan-1ferablllty of European
v'
""-t
(Speq)al
and
competitive sale on a bid of
100.5311.
Blyth & Co., Inc., and
the First Boston Corp. are heading
a group which is offering
100,000
shares of common stock (par $20)
at $21.50
per
share.
This issue
was
awarded at competitive sale
on a bid of $19.91 a share.
With Davies & Mejia
|
/'INDIANAPOLIS, IND.—Hemp¬
The report of the Paris Confer¬
of the ^sixteen nations
sug-
■■■... »I.
V'V"'7'1
the
Hemphill, Noyes
ence
77~
:
■
,
Walnut
1606
ernment securities.
-
r
ad¬
in
Co.,
&
101%
award
Street, members of the Philadel¬
phia Stock Exchange and New
York Curb Exchange (Associate),
as a registered representative.
group, which now
numbers
20
dealers specializing in U. S. Gov¬
sipn of trade and should be eased .based on a proposal submitted by
step by step.:,-But there is also r
* :
(Continued on page 46)
i-
been
membership
Bpenning
and
is
Restrictions
pansion in various directions.
least, that
restrictions hamper
to
Bank
Halsey, Stuart & Co;
offering to the public
$4,500,000 first mortgage bonds
3V8% series due April 1, 1978 at
Inc.
Boenning Adds Gribbel
Trust
,
$6,650 000.
1
PHILADELPHIA, PA.—William
G, Gribbel is now associated with
Morris,
Bankers
Chemical
I
Mr.
year.
C.
strictions and may provide a suit¬
able starting point for further ex¬
unanimous
theory"at
or
harm than good.
sents a
cautious but significant
step in the struggle to get rid of
present
almost
intolerable
re¬
payments restrictions.
in
ahead. Any at-
go
more
lateral
larly important in the field of in¬
consensus,
do
cluding
.
virtually
Financing in behalf of the California Oregon Power Cp. is
being
undertaken today to the extent of
Dealer
one
R.
California Oregon Pwr.
Securities On Market
to
Five nations among the sixteen
participants in the Marshall Plan
have, taken the initiative in con¬
American
.•
encouraged and appreciated in this
is
can
■■
country. - This would strengthen
the postion of those
courageous
statesmen'
who
are
struggling
against heavy odds* to achieve
positive results/ This is particu¬
There
they
i
Every ,v. practical : step- toward
European co-operation should be
ternational
the spot to decide how
on
'" An Initial Step to Relax
;
the
proposals.
'T####
.empt at interference
long-term beneficial effects which
may
men
may
real¬
of
depart¬
15
Walter &
,
fast
How¬
ever,
difficulty by various
may
Americans may be v somewhat
impatient and exasperated in face
of
timidity and slow progress.
But they may. better leave, it -to
re-
-
maintained
be suddenly upset
disastrous effects to their
with
with¬
much
respon¬
the precarious
national economies.'
nationalin¬
terests
much
in
being
now
time
rather narrow
lest
quarers
balance
think
anxiety
for
Company
mitted
Recovery
peans were rather startled when
serve
succeeds
Vice-President of
States Government has been
self-help and co-operation
Securities
Chronicle)
Financial
The
the- staff of Bingham,
Hurry, 621 South Spring
Street, members of the Los An¬
geles Stock Exchange.
added
Guaranty Trust Company,
Government
/.A"..-.-J'*
\
bond
to
ANGELES, CALIF.—Wil¬
liam C. Bilsborough, Jr., has been
has been elected Chairman of the
a
tral agent will collect valuable information for future
expansion
(Boeclal
LOS
Kiendl, Vice-Presi¬
charge of the United
Government
(1431)
Bingham, Walter Adds
H.
in
States
multilateral monetary compensa¬
to
CHRONICLE
Govt. See, Dealers
By ERNEST H. WEINWURM
tion agreement as
FINANCIAL
trlhar Kienril Ms
Steps Towaid Easing European
Intra-Continental Exchange
Mr. Weinwurm calls attention
&
16
THE/ COMMERCIAL
(1432)
'& ■:FINANCIAL
CHRONICLE,
Thursday, April L 1948
as
-
in
By GUSTAV METZMAN*
President, New York Central Railroad
Prominent rail executive tells of wartime accomplishments of American railroads and points out meas¬
taken to improve and expand their facilities to promote greater peacetime production.
Cites difficulties of railroads in obtaining capital and contends only way railroads can hope to have
adequate
earnings is to allow adjustment of rates to meet higher costs of producing their services.
Expresses
^' faith in future of railroads.
/
ures
passed by Congress late last
week and sent to the President. While .no White House action had
oeen taken at the time of this writing there is no reason to doubt
that it will be signed/ There has not been the opposition to it that
;
The railroad reorganization bill
here was to
-orts to
as
passed has one new
feature in it. It is extended to in¬
clude
voluntary stock recapitali¬
zations
as
well
as
bond readjust¬
ments.
Thus, it goes further than
a mere effort to afford a speedier
solution
to
insuperable
fixed
charges and impossible principal
maturities than Section 77 gave.
So far as debt relief is con¬
cerned there is little question but
that Lehigh Valley will be the
first railroad to take advantage ol
the new legislation, it has a very
unless
outlays
maintenance
are
substantially.
Under these
circumstances it is obvious that
(rut
will have little lee¬
the company
to
work out any
compromise re¬
:
adjustment plan. /■The difficulty of the job is ap¬
dAr %
mt into effect this year. He did
lot discuss any details of a pro¬
posed plan to be attempted but it
would naturally be aimed at pro¬
viding in some way for the accru¬
al? of interest
on
the
road's
ad¬
justment bonds (payment is at the
sole discretion of the directors but
is fully cumulative) and at elimi¬
nating the Very large dividend ar¬
the 7% preferred stock.
rears on
Granting that
a
recapitalization of
this nature is
probably desirable,
it seems most optimistic to even
hope that it could be consum¬
mated this year.
The adjustment 5s
are
outstand¬
ing in the amount of $13,555,865.
Interest
is
in
arrears
in
the
amount of
$5,083,449,
or
37.5% per
bonds. The preferred stock is out¬
standing in the amount of $66,693,877 and bears cumulative divi¬
dends of 7%, No dividends have
been paid on the stock since 1931
when $5.25 a share was distrib¬
uted. Prior to that the
regular rate
had been paid for the
years 19271930, inclusive. In 1926 only $5.75
had been paid and in 1925
there
was a payment of
$5 a share Div¬
idend arrears will amount to
$124
by the end of this year, a total of
roundly $82,700,000.
The road's total
mortgage debt,
of the adj ustment
5s,
amounts
to
exclusive
approximately
$47
million. In addition, the road has
serial bank loans and has
reached
CHICAGO, ILL.
Announce¬
ment is made of the change in
name
of Mullaney, Ross & Co.
to
Wells &
Mullaney,
South LaSalle
Wells,
Street.
Co.,
135
Charles C.
Vice-President,
named
was
—
recently
President
of
Clyde
Porcelain Steel
Co., Clyde/ Ohio.
His early career was in teaching
and the book publishing field and
later
was
with
the
Illinois National
Continental
Bank
Chase
and
ration.
$2,820,000.
;
It
should be higher this year but at
best is not
likely to top $4 million
was
Lawrence Stern & Co. He has
ac¬
tively participated in various civic
activities.
Harry
,
B.
President
Heign,
of
the
also
■
Vice-
a
Company,
is
wellrknown in LaSalle Street fi¬
nancial
circles.
Mr.
Heign,
Mr.
Mullaney, and! Mr. Wells are all
directors of Minneapolis Knitting
Works.
Correction
In the "Financial Chronicle" of
March 18th it
was reported that
James R. Pave had become asso¬
ciated with Hannaford
519
California
cisco. Calif.
& Talbot,
Street, San Fran¬
This
was an
■:■
Bonds
error
as
Mr. James R. Page has not been in
the
investment
business
since
,1943.
John Raymond. Page has
joined the staff of Hannaford &
Talbot.
Guaranteed Stocks
-
:
Charles L. Cleveland Dead
Charles L. Cleveland, one of the
ment firm of
Granbery, Marache
& Lord, died at his home after
a
long illness at .the age of 59.;
%m
I M CO
6PAIAKTEEP IA1UOAD STQCKS-HONDS
28 Broad
Stroot
New York 4, N. Y.
Telephone BOwllng Green 9-6400
Teletype BY 1-1063
-
World
;
the
in
War I,
eac
railroads
U./ S.,
aver¬
produced
enough trans-
'
■
po r
tatiori
/service
Gustav Metzmaa
to
move
twice as
many
troops,
operate
than
7\
Two With A. G. Becker Co.
(Special
to The
CHICAGO,
Financial
; markets of
^;/7-///'
What Railroads Are Doing
.
more
twice
as
railroads
America's
aware
h/month, the
age,
1/1
in hand with the wages of
labor..
.-/z/;;
-
factorily, and in* sufficient quan¬
tity to meet the needs of a grow¬
ing nation and the expanding
the world,
■■
had
on/ the
%
'';/*■./
In very truth, the
ot labor mu?t go
of
are
fully
theig responsibilities in
solution
r-
The
meet
this/ production
of
Capital
Private
.
Needed
railroads will" be able to
these responsibilities only
Like the need for materials in the
automotive
industry,-
the
rail¬
roads have been unable to obtain
the
large
number
have ordered.
of
cots
they
And like thfe short¬
it is assured of payment for
services rendered.
/ The incentive
as
for
/ the
employment of private
capital
at
-
in the railroad industry
present is far from sufficient
miles, move more age Of automobile supplies, this to make such employment at¬
as much Army
scarcity of railroad cars makes it tractive. A return of only 3.3%
reight and express, twenty times increasingly difficult to meet all is certainly inadequate to encour¬
os mu6h Navy freight for overseas
the demands of those who wish age private capital toward work¬
destinations, and nearly double as to
buy
railroad transportation ing for the railroad.
In fact, it
se
many ton miles of freight of all
would not be sufficient to war¬
ryice.7//'://;^
kinds as they moved in the first
For example, during the last rant
working for any industry.
many passenger
than
five
times
war—and without serious conges¬
two years, over 1,000 new indus¬
tion!" • tfx
trial
Last year,
despite
a
critical car
the
plants
located along
York Cen¬
were
lines of the New
shortage, the railroads moved the
heavist volume of freight traffic
tral System.
in
freight traffic for our company
than was gained from new indus¬
tries in any other peacetime year.
In fact this new traffic is equiva¬
lent to adding a new major city
to our System.
We are glad to
their
peacetime history/
In
fact, they hauled enough freight
to average 12 ton miles of trans¬
portation service each day in the
year for every man, woman and
child in the United States.
The increased efficiency which
the railroads have been constant¬
ly attaining over the past/25 years
been an important factor Mn
La*
fact
that of all the railroads
in
the entire world with few minor
Those established in
1947 alone will produce more new
Pacific
taxpayers*' money.
/'T6day, > you of industry and
agriculture and we of the rail¬
roads once again are face to face
with the ' problem of production.
This
problem becomes all the
/Consequently, with the excep¬
tion of equipment purchases, rail¬
roads must depend primarily upon
the reinvestment of earnings for
the expansion of their plant and
facilities to meet the demands for
increased production.
earnings
Unless such
maintained at an
are
adequate level, the ability of the
railroads to" continue such
im¬
provements
and
expansion^
in
provide you with suf¬
the long list of older friends for ficient and dependable transpor¬
welcome these
whom
we
new
work,
industries to
order
to
tation
service,
be seriously
only /way r the;
demands for additional transpor¬ railroads can hope to enjov ade¬
tation service, the
railroads at quate earnings is to be allowed,
present have on order approxi¬ just as other industry is allowed,
mately 120,000 new freight cars to adjust the price of their ser¬
and since the resumption of pas¬ vices to the cost of producing it.
senger
car
building halted by Onlv in such a way can the rail¬
the war, they have ordered over roads pav private capital a living
4,000 new passenger-train cars. wage and thus provide the qual¬
Assurance has been given that ity and quantity of transportation
sufficient steel will be allotted for service wbich the public demands
the construction of
10,000 new and rightfully expects. freight cars each month. But such
Has Faith in Railroads
output must continue at this rate
I have faith in the ability of
for the next several years if the
railroads can ever hope to replace the railroads to continue as a
,
In order to meet all these
new
threatened.,
may
The
,
worn-out
vital,
constantly
panding
equipment, provide for
expanding traffic re¬
United States are virtually the quirements, and thus overcome
the present car shortage., Let me
only railroads
left which
are
assure you that the railroads are
privately owned and operated.
Practically all others are govern¬ making every effort to increase
their supply of equipment and
ment owned and. operated with
exceptions, the Canadian
in Canada and the railroads of the
Chronicle)
ILL. — Michael W.
John D.: Kipp are
fill
the demands of
road transportation.
all
for
rail¬
The railroads
part of our ex¬
I have faith
capacity to meet their
ever-increased responsibilities -as
in
pulsating
economy.
their
nation's
the
system.
intelligent
herent
basic
transportation
And T have faith in the
self-interest
fairness
w»nle to
see
of
the
and in¬
American
that they are per¬
equipment mitted to continue as a vigorous
ordered two and three years ago. part of our free enterprise system.
And almost every month that de¬ Onlv in such a way can the rail¬
liveries are delayed, the cost of roads hope to meet the production
of
a
growing nation.
this new equipment goes up and demands
more serious when we realize that
the expense to the railroads < is And only in such a way can they
since April 1840' the: jpbpulation
hope to maintain their strength
increased.
of the United States has increased
1 These and the soaring costs of as mighty defense lines against
an
estimated. 14 .million people,
fuel, materials and supplies, taxes any emergency. '■'/•V//./;" '/////
and is now growing at
a rate
and wages, all combined to
It is in that faith that we of the
give
Which is equivalent to adding al¬
the railroads, in 1947, despite rec¬ railroads face the future/Today;
most three, cities the size of Lans¬
ord traffic and efficiency, a return despite
production
records i all
ing to our population each month. of
only 3.3% on their net prop¬ along the line: despite the; high¬
Our growing nation, the pent-up
erty investment. Such return is est standard of living of any na¬
demands to satisfy wartime short¬
far from sufficient to attract new tion; despite the largest national
ages: at home; and the enlarged
capital
one of the parts es¬ income in our history; despite,all
markets abroad, all combine to
sential to the railroads' production these, there are still those vwho
create a production problem which
line of more and better transpor¬ face the future despondent ;and
calls for the same ingenuity, and
tation service.
fearful. They think they see storm
the same efficiency which enabled
clouds gathering on the economic
America to win the battle of pro¬ //This is not unlike an automobile
unless all parts horizon; they fear they - will hurst
duction in times of war.
Let lis assembly line
wide
flow at the proper time and in
open and drown them an, a
never forget that the inspiration
sufficient quantity, it is impos¬ deluge of economic disaster; they
to achieve a goal must at all times
fear
another
depression; a third
sible to produce the finished prod¬
be backed up/ with the sweat of
uct. The railroads, too, must have world war; an atomic bomb. None
each and everyone of us. Only by
all
their s parts—enough
freight of these do I discount; I am too
maintaining high production cap
much of a realist not to be aware
and
passenger traffic, sufficient
we
hope to maintain our high
are
still
waiting
,
level of wages and our high stand-
for
.
.
manpower, adequate rates, and
ample private capital—all flow¬
ing steadily, in order that the
of
the
our
obstacles
path.
that may lie in
But with faith in our
country, in ourselves, and in our
their only work, we can turn stumbling
& Co., Inc., 120 South La Salle
man at the Lions Club luncheon,
product—transportation • service— blocks into stepping stones of
Street. /
"
arid produce it efficiently, satisC.ansing, Mich., March 30, 1948.
(Continued on page 35)
Gerrard
now
and
connected with A. G. Becker
*From
an
address of Mr. Metz-
.
as
/they can /count j on this steady
In their efforts to meet flow of private capital. The pro¬
these obligations, they have un¬
ductivity of capital is no different /
dertaken the largest new equip¬
from the productivity of labor. j
ment program in their history. Private
capital will produce only
problem.
.,
founders of the New York invest¬
Special Securities
they
than
Corpo¬
with the Continental Illinois Na¬
tional Bank "and Trust Co. and
.
end of last year amounted to
less
than $5 million.
Net income in
1947 amounted to
■
Land
cars
and Trust
Securities
investment firm here in 1938
/ come
150,000 in 1950 and $1,675,000 in
1951,
It. working capital at the
productivity
He is President of Good¬
agreement with the govern¬
ment to pay off certain back
in-
-
and. one-third
:
*
%
';v',/■;
of living.
ard
fewer passen¬
achieving these results. Equally
significant has been the cooper¬
ation among the shippers, rail¬
will Industries of
Chicago and roads and government - agencies
Treasurer of the Evanston, Ill¬
which had its greatest expression
inois, Hospital Association. He is
during and since the last war. In¬
also a director of Wayne Pump
deed, this cooperative effort on
Co. and director and chairman of
the part of all affirms that the
Minneapolis Knitting Works.
American way of mass production
Paul L. Mullaney, President of
and mass consumption can best
Mullaney, Wells & Co., is a di¬ be linked
by mass .transportation
rector of the Trust Co. of Chicago
under private; management,
As
and before establishing his own
further testimonialto this is the
Co.
nn
taxes serially. These serial
principal payments amount to $1,450,000 each in 1948 and 1949, $2,-
cars
i of; the
thereon is close to $88 million/
Total debt senior to the adjust/
Changed lo
Mullaney, Wells & Co.
fewer«>
freight
:
.
Firm Name
fourth
ger
starting
'
,,
>/:;•,V>/'
parent when it is realized that the
total par or face value of the af¬
fected securities (the adjustment
bonds and preferred stock) is in
excess of $80 million and the total
interest
and
dividend
accruals
debt maturity
schedule
in 1948 and extending ments, including equipments, bank
loans and the serial tax payments,
over, the. next few years. Also, it
is generally conceded that fixed i? around $57 million. Capitaliza¬
charges are too high; This will tion junior to the preferred stock
probably be corrected in any re¬ is: represented by 808,966 shares
adjustment plan by putting at it no-bar value common stock. It
least a portion of junior interest
virtually impossible to see how
on
a contingent basis.
So far as any plan could be devised to take
the expanded scope of this new care of the combined claim of
legislation is concerned, Missouri - some $168 millions of the adjust¬
Kansas-Texas is expected to be ment bonds and preferred stock
and still leave anything at all for
the first to attempt any action.
\
Tress reports from St. Louis state the present common.
that Mr. R. J. Morfa, Chairman
of the road's Board of Directors,
raid last week that a recapital¬
ization plan for the road might be
heavy
In this second world conflict, agriculture, industry and the
railroads, working always
partners in progress, made production records which surpassed even the most optimistic
military logistics. With one-fourth fewer employes, one-third fewer locomotives, oneas
for the use of cash in trying
way
;
'
the two earlier el-<^
enact similar legislation.
The bill
was
railroads may produce
UrMiVVAbJlil
uMiWMW*M* M* Sc
X i>
>*
Volume 167 .Number: 4686
"For
using the highways, Americans
two -billion dollars
another
THE COMMERCIAL tb
eight
a
hundred million,
lecal taxes account for
while
By ARTHUR M. HILL*
.'
half, or.
billion, three hundrcd million dollars, and even in
a
1
a
,
total of four
the faee of this
staggering bill,
SUte legislatures in many States
are
automotive taxes to.
new
between
President
This
;
j
"
a
load which the
^ef automotive
>
%
m
\
is, of
Romney
George
tional
Kelvinator
-
g
owners
and
vehicles
t
a
^:/. t.;;- •> r ::
We hardiy need add that these are by no means
o
m
of
slavery
dic^a-
g
i
a
the
h
s
claim
demo¬
crat ic
and
Congress
t
s
<
of
and
human
.»
—
p,ot only the men
of the
women
which
«;
•
line-up
'
*
mean
source
we
a
state
country, from,
obtain
lead¬
our
ers,
acceptance in the belief of our citizens in GOd,
findings of the in our country and institutions,
President's Air Policy Commission, in the, dignity of the free
man,
of generosity and
and the almost identical
conclu¬
fellowship to¬
i p
n
-behalf
—''
I
sources
meet, its
scientists, professional people
on the part .of our nation is
typi¬ of all kinds,, our labor and, in
fied., by bi-partisan approval and wartime,. our .soldiers and
sailors
acceptance of the European Re¬ as well, but also that
dynamic
force that has made America—
covery Plan; similarly, in tne ac¬
way
r
it .and
The realization of Such
demo¬
under
re^
s
on
'—■—
'Jr.:':-..
..
stand'upito
challenge t
dignity? '' -
ins t
a
life;
users
1 are
i
n
1'
.
tb
eonv-
cratic
heavy
a
^Uired:t^earry;^^":;-^':^
'-"V
u
the
course,
<§>
—t
interna¬
Assistant to the
Nash
Corporation.
.
.
of
'
»two
ideologies.
Automobile Manufacturers Asso¬
now
•'
I am sure that we are living in an era of turmoil andi
uncertainty.
We are .not at
peace with, the world—actually or
by statute. It is generally described as a
"cold war,"
perhaps a better term would be a state of world revolution with the
high levels." — George Romney,
formerly
Managing
Director,
ciation and
,y
Industrialist) heading important national defense agency, stresses serious w6rld situation
and points out
measures now being taken to meet it.
Says our strength lies in our national resources and
lays down
as requirements for national
security: (1) a clear, just and honorable foreign policy;
(2) strengthened
armed forces; (3) Increased
stockpiles of strategic materials; (4) encouragement of
discovery of new
!
sources of
materials; and (5) mobilized spiritual resources of the
people. |
Vy
We will all agree,
considering proposals to in-
crease
;
(1433): m
Chairman, National Security Resources Board
;w
State and
final billion and
a
CHRONICLE
pay over
Federal excise taxes take
year.
FINANCIAL
.
r and
general
of
the
ward
other peoples. It is
sions of the Congressional Air
the spirit
being paid by American
free
way
of
of this great nation of
Policy Committee; ;
'"V
burs. When,
1
living.
V.-V;
' '
./' - 'K While I am in no sense of the the people of this land
are in¬
We could not, naturally, even if we
I feel that
would, in
word a political appointee^ but formed and understand the
Arthur M.
Hill
issues,
^
this space sp much as suggest in a general way what " i the remarks
rather a business man selected for they, may always.; be relied
upon
of that great
' 7V
1
/
;
a
.taxes' should be reduced and by what amounts to rlC'Si
job, in spite of my politics, I to pursue the right course, v I
worl d leader, Field Marshall Jan
"support whole-heartedly and im¬
It would be fatuous
Christian SmutSy recently along
for me| to
; ?create a sound tax system-or systems from the conw
plicitly the- President's recom¬ expand tod far on
industrial re¬
this line are so germane to, the
*•$?'> fusion and inequities now existing,.
mendations to Congress on March sources and
production before this
present occasion that I should like
! V'
What we can say is that the burden of taxation
^
17, wherein he outlined the world audience, in this ]
the only onerous taxes
citizens.- < .ji
,
now
:
«
v
,
•
to
he reduced
his
quote
words
they
as
great industrial
city. Our techniques of mass
pro¬
duction have made this
nation
ap¬
situation and urged the prompt
generally only if government ex- v
peared in -Time" Magazine:: :\,j
passage of the European Recovery
:Vs!.';r penditures are sharply .-lowered.
i; V';
"Something is happening in the Program, U h i;v e rs a 1 Military
J
Mere is the spot at which attacks should be first ?
world today which7 is going to
Training and the re-enactment of
v^' of all directed—that is at
shake our civilization to its very Selective Service. In
public profligacy—and it
'
my opinion,
foundations.
'
What
is
called
the
is here that the least effective effort is ordinarily
he was fearless, forthright and
new 'democracy', is making its ap¬
siftcere in his appraisal of the
f;;;made.J':■
Ti.■ 2'.;'C'.'''' pearance today—it has come to situation
can
>
.
Gives six
Dr.
why proposals
reasons
;
lization
Max
Winkler, cf Bernard, Winkler & Co., members of the
New York Stock Exchange, has issued a statement, as of March 25,
-summarizing his reasons for opposing the recent offer of the Govern¬
ment of Chile to redeem its outstanding dollar bonds for a new issue.
These
^
reasons
.are:':''""-
V"
ment
in pay¬
is
ap¬
cause," of
One
securities
tax
feature
as
ex¬
be
Max
Dr.
Winkler
because of the
-
>.i
•
the debt through amortization and
because of the probable increase
the
income
from
and
copper
nitrate has been eliminated.,
•
[
-
K
(3) Chile's debt to
the Amor¬
tization Bureau, i.e., to bondhold¬
amounting to about $24 mil¬
ers,
lion is
cancelled.;-•
;'yf'c \;■</
(4) Of the first payment to be
received,
bondholders
will
asked
to
contribute
total
about
$165,000
waS
of
Agency
debt plan.
new
plan provides for
for > bonds whereas
under the old
from
be
-
new
security
no
a
the
to
which effected the
-(5) The
plan, Chile's income
copper, nitrate and: iodine
specifically earmarked for
that purpose.
*
jif
"•-(6) Under the new plan, sink¬
ing fund payments for the period
1946-53
are. fixed
at $2,531,000
annually, compared with
an aver¬
annual sinking fund of $4,372,150 for the oeriod 1938-1947
under the old plan..
^7v\T
age
„
:
-mrnmm——
.
JP.
JERSEY CITY, N. J.
Schroll
has
the
the
has
from
the
ad¬
New
fallen
ship and
heir- to
world
leader¬
cannot avoid
we
sponsibilities with honor
our
or
re¬
safety.
world
While much has been said with
entirely different place.
we going to play our part in
Are we going to submit and
to
our
diplomatic and
military problems, the plain un¬
years
be
now
an
down to
it,
or are
we
respect
varnished
going
fact
remains
that
our
strength in the world stems from
resources—all
the
of
them.
For
discussion
and
"An address by Mr. Hill at the
Annual Meeting of the Pittsburgh
simplicity,"I have listed them
Post
human
the
of
American
Association,
Ordnance
and
Pittsburgh, Pa.,
March 25. 1948.
and
natural
By
-
of
purpose
as
spiritual,industrial
resources.
human
and
,,
I
General Eisenhower said re¬
cently that oil D-Day plus four
he flew over the English Channel
I actually
damaged
or
an
ooened
—
Howard
20 Van Housten Avenue to engage
in the securities business under
the firm name of Schroll & Co. He
w£s
formerly ' assopiated
with
Peter Morgan & Co. in New York
City in the sales department.. -
Schafer, third gen¬
family in the securi¬
*announcement
is
not an
offer to sell or a solicitation of an offer
The offering is made only by the Prospectus.
~
;
-
,
founded
in
1860.
\
Partners
pride at the ability of his country
so back
up its military forces.
to
When
..
we
come
to
our
picture is not quite
so
comforting.
We Jiave
been
prodigal with our natural re¬
for
sources
world,
>.
the
both
in
While nature
benefit
peace
to
,
.
.
departments
Co.,
ner
Co.
for
E.
I.
duPont
this
it was never
(Continued on page 27)*
in-
ours,
.
"
,
'
-
-V
&
Merrill Lynch,
& Beane and
Pierce, FenKalb, Voorhis &
.
First. Mortgage Bonds, 3% Series due 1978
'
,
%■
The
principals
are former part¬
Kalb, Voorhis & Co. The
Unlisted Trading Department of
Schafer, Miller & Co. will be un¬
ners
7. :A;; ;'/Xe
r
'
'
'
of
Dated
4
'V
--.'w r,.
April 1, 1948
Due
Price
der the direction of Mr. A.
King¬
Ghegan and Mr. Herbert E.
Greene, formerly of Kalb, Voorhis
April 1, 1978
IOO.99%)and accrued interest
ston
& Co.
The
Schafer
has
name
been
The
prominent in the nation's finan¬
cial
circles for
almost
century.
a
'■J
-
Prospectus
:
,
}
may
be obtained in
any
Stale in which this announcement is circulated from only such
as may lawfully offer these securities in such Slate.
7 7.
of the undersigned and other dealers
Edward
Schafer, brother of Oscar
Schafer, is a member of the Stock
Exchange as are, their cousins,
Myron Schafer, one of the few
half-century members of the Ex¬
change; Myron L.... Schafer and
.
,
Charles E. Schafer.
HALSEY, STUART A CO. Inc.
Y-.
A
G. BECKER &. CO.
..
-
r
-incorporated
'
HAYDEN, STONE & CO.
.7,^
C
EQUITABLE SECURITIES CORPORATION
OTIS &
SCHOELLKOPF, HUTTON A POMEROY, INC7
i
CO.
•
'
K "n
i
'•
;
f
\
^
to; individual,
investment
dealer
with
and
DICK A MERLE-SMITH
PHELPS, FENN A CO.
BLAIR & CO.,
HORNBLOWER & WEEKS
'
,
dents in
out the
WILLIAM
BLAIR A COMPANY
principal cities through¬
country.
Formation '
was
correspon¬
S
r *
•
-
i
WM. E. POLLOCK & CO.,
INC.
-
>"
«
y
; -
*'
'
l' 'STROUD
*
previously
the
reported
"Chionicle" of March
firm
new
18.
in
.
the
.,
'7
April-.1.194?
'
r"
^
incorporated
,
GRAHAM, PARSONS & CO.
I A
-
uphnv
& COMPANY
incorporated
of
INC.
GREGORY A SON
■
accounts
,
the
war.
richly endowed
of
buy these securities.
.
of
and
,000,000
.
natural
resources, the
will
Miller, John R.
Meaney,? Exchange member, and
Gerald B. Nielsen, recognized ex¬
pert in the foreign trading invest¬
ment field, who organized
foreign
^hips
; his
supplies
ties business, was for many years
a partner in Schafer Bros.—a firm
include Benjamin
;
to carry on, and he
marveled with
re¬
brokerage and research facilities
offices I at
300
^
Schafer, Miller & Co. will offer
[
counted
sunken, f Yet
armies still had adequate
land
spiritual
(incorporated)
I
1
Schroll & Co. Formed
;
15
eration of his
received
in
of
i
our
in the
Oscar Straus
pay¬
of
Fifty
bow
Miller & Co.,
firm
know it and cherish
through the
greatest crisis in human history.
it?
returning to
with
roster
afford the risk of not being able
militarily to support our diplo¬
matic commitments.' This nation
passing
are
as
should follow. <circumstances can we
no
Exchange, with offices
Broad Street, New York 5,
N. Y.
would
retirement,
business is
member
a
at
tation that
ments
"We
Under
we
York Stock
isting plan.
:j <2)
Expec¬
•larger
names
mission of Schafer,
d is t ributhons
under the
the oldest
the financial
of
,
of
as we
is,inevitable.
Are
Opens in New York
parent rather
•than real be¬
it
may
Schafer, Miller & Go.
(1) The in¬
crease
to the" course
things which in ancient days
we used to call slavery.
If a halt
is not called, then the end of civi¬
not fair to bondholders.
are
state
of
Winkler Opposes Chilean Debl Plan
V ;
a
in
They have given us the
highest standard of living in the
world during
peace, and, as Gen¬
eral
Knudsen said
during the
war, "It deluged the enemy with
production!"
,
and in his conclusions
Czechoslovakia—but it is
ia, peace and invincible
great
war. ,*
wrrnrN
je.
rr.
WEEDEN
&
CO.,
INC.
COMMERCIAL & FINANCIAL CHRONICLE
THE
(1434)
18
Willi Mullaney,
Thursday, April T, 1948
Well* Co.
(Special to Th* Pinanciu. Chronicle)
ILL. —Roland. C.
Roos and David W, Shirley are
with Mullaney, Wells & Co;, 135
CHICAGO,
South La Salle Street.
•
-
By PAUL EIN2IG
By Henry hunt
Turkeys' and Trading Profits
V'/ j.
•;•>
"As;we recall if, Arthur Brisbane was the first to tell this story
and it's a good one; A friend of Brisbane's was1 boasting about his
in-and-out trading profits oft the Stock Exchange. Brisbane replied
that he too had indulged in this so called sport but that his .experi¬
the
NATIONAL
SECURITIES
"It
don't
I
you
CORPORATION
RESEARCH
1
with
a
tran
door
'
nut
You
^^•4^ FliN'D^^m
,
prospectus from
your
Investment dialer
first experience at trapping tur¬
keys somewhat as follows:
■
0-
H0$
PHILADELPHIA
2, PA.
"Shortly
sunrise
the bushes,
my nerves tensed at the sound of
turkey hens 'clucking' and turkey
cocks 'gobbling.' In a minute, I
could see them approaching, peck¬
ing away at the trail of corn. If
was a large flock, nearly twenty
the dew
birds.
a
was
It
f t
e r
still
to
use
to
half
a
the
to build up
third and
a
or
surplus
thus created
reserves; to modernize
hours
but
was
With
net
assets
$7;000,000 in
six weeks
sult of sales of
Aftbett's
new
Affiliated
as
a
re¬
has
000, all borrowed at 2%. Includ¬
ing the bank loan, total assets
now
exceed
$48,000,000,
'number
one
countries such as Britain
emergency'
WAU
STREET,
NEW YORK 5, N Y.
couft-
or
Bel¬
should
gium. ?",:v
'}??
*
directed / To overcome the deadlock.
was proposed in September that
car-building
all
Western European countries
mediate l.y
be
m
should Z make
their v purrenciefreely convertible into each other
This plan was accepted without
^
Inc.,
,
:
:
the Netherlands and J/-yembourg, while Britain and-other
couhtries adhered to it to a lim¬
ited extent;
In practice, the re¬
gium,
sult produced so
I
far has been dis¬
ters.
It
provides for the
lishment of
Dollar
new plan was
Belgian quar¬
a
from
a
estab¬
Western European
Pool) for which-fhe dollar
reserve
would
be
provided un^e^
There is also
the Marshall Plan.
question of creating
some
in¬
an
ternational unit of account for Use
in
trade between
Euro¬
Western
.
-
'
'A'
•
;y
V "
Juno's
Certificates of
Participation in.
INVESTMENT' FUNDS
investing tlieir capital
*,
IN
;
'
Have
you' eVe^ felt* like the"
Chinese philosopher, My Tee Lo?
On the Rocks
A-
•
"These
Things Seemed .Impor¬
tant," published by Selected' Ittvestment Company, quotes from
BONUS
PREFERRED STOCKS
(Series K1-K2)
-
Y
•
New England
COMMON STOCKS
,r.
Prospectus from
Keystone Company
of Boston50
Congress Street
Boston 9,
Massachusetts
ner
Hicks &
in
Price, 231 South
La Salle
Street, members of the
New
York
and
Chicago; ■ Stock
Exchanges,
on April
8. ; - Mri
Stewart was formerly a member
of the Chicago Exchange afndt in
the past was a partner in Hicks
& Price.■;'' ^
^;
ORGANIZED 1931
i
X Albert William^ To Be:/
Nugent & Igoe Partner'
|
investment dealer or
•:
Tke
CHICAGO, ILL.—John C. Stew¬
will acquire the New > York
Stock -Exchange membership of
George Brown and become af part¬
.
1(Series S1-S2-S5-S4)
your local
problem
Partner in Hicks & Price
art
(Series Bl-B2-ft3-B4)
;
oin.
A
itals
would
*'
.
.
General Distributor
.
>'.
Coffin & Burr
Founded 1898
r
:G'
1BOSTON
NEW YORK
HARTFORD
-
PORTLAND
- -
EAST ORANGE, N. Y.—J. Al¬
bert Williamsl will on April 15 be
,
:
'.Incorporated '■ •/ '•,
f■
BANGOR
Britain
admitted to partnership in Nugent
& Igoe, 592 Ma\in Street, members
of the NeV^ York Stock Exchange.
Mr, Williams haVbeeri' aft officer
of
J. Albert'
many years.
Willmqis & Co. for
w
there
are:
ences.
difficuTtv
•
considerable,
v»cit to continental cap¬
make them realize
sterling
is
considered
of
trustworthy
Continental
the
of
their
tary diseases.
respective
are; aware
which
to
/
rteidlv
-
stabriized.
the
franc
i-
fluctuating .in the free markf%
Prices and wages are risinv in
both > countries, but more rapidly
in France than in * Brtam.
If
would be idle to try to jink West¬
ern European currencies with each
.other unless' and until; inflation
has* beeri checked or at any rate
uritiP iVhas' been brought'under a
more or less uniform control,
f
Over, and above all,
.these
balances
lead
to
unreauited exporisland Increase
;
British
Britainls
on
Government
balance -of
be
there ia the
pensive popularity abroad bv satisfying . the needs oi all and sundry
there
establishing
a
he
question of
Western European
r)0
Monetary Union,
.Another
that
,'
-
difficult
the
of
-
-
devalution
overseas.
such
ing
,
European
external
debt)
heavily and
country with
It is
is
of
weigh¬
unilaterally
on
// /
the
It is urged
from American:;$ide) and there is
to believe, notwithstanding
official denials, that it has been
/
reason
discussed
between
Governments
There
mainlv
have
may
ordinatod
the
be
concerned,
the
far
co-
.
several
their
spectiye overvaluation
As
a
of
correct
valuation.
.
concerned.
•
to
devaluation
currencies, to
..
European
;•
re-
,
under¬
stealing, is
or
as
British
Govern¬
ment refuses to consider the idea.
The French and Belgian Govern¬
ments, however, are keen on a
devaluation of sterling, mrtly for
considerations
of
/
prestigg /and
partly in order to be able to buy
cheaper
There
the
from
is
however,
Sterling
to
reason
no
that
a.
\
Area.
believe,
devaluation
of
sterling would be ins*steel upon *,
a
preliminary condition, of a
Western Eur op ea n Monetary
as
,
Union.
The
situation
solution;
calls
While
far u"rgent
co-ordination
production aftd customs union
long-term remedies,
a
of
are
/ /:
solv*fari of
Possibly
^
would help matters, as it would
ease the foreign exchange posi¬
tion
of
that
extent
Western
it
governments
the
Europe,
would
action
bring
to
•
to
the
take!
to
concerned
.necessary
and
enable
>heir monetary trends more, or less
fa conformity with those of .other
participating countries.
.
;
' i
•i
-
i
With Ma rshall Combany
rd-fl-ioj, *0
-
CT^*hic!V)
M'TLWAUKEg, WIS.—Mrs.
M;
Sholf ^
•
and - Monnie
Water
Company,
Street.
Both
'
Elholm
762
were
The^
North
for¬
merly with the Sholts Investment
Go., which has been dissolved fol¬
lowing the death of Bud Sholts.
9'
■
V;
•
■
!
Vera
Marshall
;Wqstern
\
.
nrobl^m
floating debt represented by the
held
opiv
-
,
can
have become associated with
sterling balances
Britain is
the
"
per-
obstacle of Britain's lar°e external
wartime
the
u"til
can
suaded to face its resoons'bility in
this respect instead of seeking ex-
the adoption of the Marshall/Plan
/ For instance, while sterling '>
///;
least
tha+
mone¬
.
currencies.
experts
extent
sterling
the
all
differ¬
is
both of degree and of kind
between
V
in-
the monetary problem would
pro-*
duce immediate results.
-relatively
be
ould'
simple/ ' The.
is
,
the.
that the opposite is the c^se. and
that so long as the present burden :
cf
the
sterling
bal»nc«^
exist,
.
:
which
European currencies.
appointing.
More recently
put forward
make-
imagining that the
with
.
reservation by France. Italy, Bel-
I
and
ustodian
of
payments.- Unless; and
steel
Gov-
Treasury of-
pressure
.
as of March 11, 1948,j were
pean" cOUntrie's.' The currencies o'
$108,280,555 with shares currently the
participating countries would
Just then I was startled by the owned by more than 58,000 share¬
have to be related to th'S unit,
<
'
sound of a gun shot not far be¬ holders.
t Obviously,
the
solution does
hind me. I ,looked around involun¬
National Investors Corporation not
depend /entirely, \ or
ever
tarily -and saw nothing. But the added two new portfolio issues mainly, on the discovery of so™'
turkeys had heard that shot too. during the month of February,
ingenious formula; Its successful
When I looked back, my hutch Corn Products .and Gulf Oil.
■
/
adoption would not be possible
was empty and
remained so for:
Hugh
Long points out/that unless and until some degree o'
.the rest .of the d#y.. J
an equal ift vestment in Manhattan
harmonv has been achieved be¬
"The moral of this tale is,ob¬ Boiid Fund,
Diversified Invest¬ tween the monetarv policies an'*
vious;- when trapping turkeys or- ment Fund, and Fundamental In¬ trends prfivaftinj? in the countrier
trading in the stock market, it vestor& affords a current return concerped.
To that end each of
takes a good man to know when of 5% and provides 12
monthly these countries would have jto put
to pull the string."—Quoted from dividend checks a
their
monetary house in order. If
year.
National Views written by Henry
they all suffered from the - samd
Ward Abbot.
monetary disease • and aPProvi John C. Stewart To Be! ^
fnately to the r same extent! the
Morning, After /
/>
the' open door.
One: walked- in
another Was close behind.
British
world
a
endugh
,
■18
in
is its shortage of freight cars and
to
probably only a few minutes, be¬
fore the first one, a large gobbler, plants to build 300,000 cars in the
least possible time, Col. J. Monrbe
walked into the,hutch. My finger
Johnson, director.of the Qffi^e of
twitched but my
jud&ipent told
Defense
Transportation^ . said
me, not yet, there are pl^ftty iriore
here.
•
4 f 1
»
v
getting closer. A minute later, an¬
other bird walked in. Then an¬
"Rapid building of freight cars
other, and another. 'This is tlie is no less important for peace
life,' said I, as three more joined; than it is for war, Col. Johnson
'Whether or not there's a
their mates in the hutch, making^ said.
seven in all.
Just then, however, World War III,, if something isn't
two walked out and then two done for the railroads, with pro¬
duction at its present level, we're
more. 'What a sap I am,' said I to
myself, 'I should have pulled the going to have a difficult time for
We could
string: when I had seven turkeys.' an indefinite period.
But no, I was wrong—they started build 10,000 cars a month forever,
and
still
not
solve
the
immediate
going, back into the hutch, first
one, theft a pair arid arid another* problem/, he said."
%
pair. Eight birds were in the
hutch! 'I'll make it an even ten,'
Net assets of Investors Mutual,
said I as three more approached
T i 0
European
.
t
N C 0 s (• O « A
Western
'
nation's
the
and
funding, makes for
prestige to sterling and to Brh>
any
tween
by
sys¬
down
Dr. Paul Einzlf
urgent *
| tries.
/
re¬
a
stead of insisting on their scaling ,1
More
For instance, France had to
cuftail' drastically her imports of
*, Distributors Group in
a recent
much-needed goods, not only from
bulletin quotes from "The Wall
Street Journal" as follows:;: "The the dollar area, but even f rr*r-:
Freight Car Shortage
are
burden
shouldering the burden of
wartime
sterling : balances,
threatening to strangle trade be¬
j
live
heroics
of these problems is,
however, the problem of breaking
the'
monetary - deadlock that is
creased its bank loan to $11,000,-
of
'
believe when
the
Customs
than
this
predominant part, v'■
a
fic'als
important and
in¬
countries
share
ernjnent and; British
remote
.more
to
/ Members
con¬
Union.
Lord,
shares
Fund
a
than
more
play
possibilities of
/•-''■•■/I
'*•
up
also
The governments of West-
tem in wh'ch sterling is bound to
p
sidering
of weak¬
source
linking their currencies to
e.titicn
against
each
other.'
They
are
a
European
luctant
other's
.
and to reduce
,
1
ern
more
'
i
HUGH W. LONG & CO.
ness.
better posi¬
tion
to meet
com
on
seemed
order to be in
requirements
fafies Down
_____
sterling and is
each
industry, develop economic inte¬
gration in Western Europe and
undertake now the program of
hard' living arid hard working in
which in the long run salvation
alone', will lie.7,
Another $1 Million
still roosting in tall trees. A friend
of Mr. Brisbane's described his
A MUTUAL
reduced
:
"The turkey trapper gets up be¬
fore day light and settles down in
his 'blind' while the turkeys are
established J 928
<*•——.—.—
.
production, in
a
Affiliated
A Sport for Early, Birds
of
systems
course would be for Britain to
Pursue now the policy it would
turkey
a
plenty of corn inside the hutch
and a liberal sprinkling of corn
leading up to the hutch. Then you
hide yourself in a bush 'blind'
with a1 long string in your hand
attached to the trap door, the idea
being to pull the string when you
get enough turkeys inside the
hutch;. Only sissies settle for less
than a pair of birds.
;0p00\
J
WELLINGTON^m
W
| lows: "Britain faces bankruptcy.
seems that in Georgia you
The only proper, the only longuse guns on wild,turkeys— sighted,
the only courageous
You build
Calls solnhon- urgent
LONDON, ENGLAND.—The experts of the 16 European nations
concerned in the Marshall Plan are at the time of
writing busily en¬
gaged in discussing problems of the economic integration of Western
Europe. They are examining the possibilities of co-ordinatin^ theJr
Economist" as fol-
trapper- tha,."London
turkey
backwoods of Georgia.
trap'em.
hutch
m MOADWAY, NEW YORK 5. N. V.
wild
novice
in the
ftteptdir Mpbn request from
four mrestment dealer, or from
first to put its- monetary house in order.
r
similar to that of3>-
had been
ence
/V"'.-/
Asserting results produced thus far by 16 Western European na¬
tions toward establishing a freely convertible
currency have been
disappointing, Dr. Einzig points to need of harmony between mone¬
tary policies prevailing in nations concerned, thus requiring each v
'
•
Tfffi COMMERCIAL & FINANCIAL CHRONICLE
Number 4686
Volume 167-
(1435)19
HUM
Ml Trade
-
-
'
,
Organization Sets Up Charier
the United States
Representatives of more than SO nations at Havana approve docu¬
ment providing a code for world trade. Would restrict and control
international cartels, prevent government-operated enterprises from
exercising special privileges, bring about eventual redaction of
tariffsr import quotas, import and export controls and bilateral
preferences* ^Commerce Secretary Harrimau lauds' CbarfeV jip '
healthy instrument for expanding world'trade by reducing cofi7
trals to minimum.
,
*
...
budget is geared not only to nation's place in world today/ but also in
worW of tomorrow. Points out effects of war and efforts to prevent future, war account for
79% oi
total budget, and current budget mitst cover tbree t road areas of: (1) our international
responsibility ;
i?) our national defense, and (3) lour domestic programs*: Estimates ERF cost as $4 billion in 1949
and $S billions following year, and says it represents only mittufe fraction of national Incomearid
wiH save future national defense costs. Holds Administration's policy has been - to curb domestic
?
outlays, wherever possible.
y
many months of deliberation4, representatives of over 50
meeting at Havana; Cuba, finally approved, on March' 23, a
Charter
for
Nations.
an
International
Trade
Organization under the United
The Charter consists of nine chapters and 106
covers matters
of
policy'
well
i
gan
or¬
z a
t ion.
Before
i
m
t i
strictions
plementao
n,
|
;
currenciesV that
spent in other countries.
Trade
70 rg anizatioh
(ITO) made a
division of the
^he
>
;
?
"A further ob jective of the Char?
.
Interna-
^can
ter
i
is
»t6; make
nations
to
work
-
;
•
agreements
It"
partisan
—at
W.
tionS
past, countries producing and sell¬
siderations.
Concerning the significance of ing such basic commodities have
the
ITO
Charter, Secretary of suffered when world prices; de¬
of Commerce W. Averell Harri- clined. Low
prices led to declines
man issued on March
24, the fol¬ in production; and the resulting
lowing statement:
*
'
scarcity in turn produced
Under these
Avwwl H»rr(m»ii
prices,
v
In
the
dairies E. Webb
I
world
prosperous
code—a
Charter
an
of
of
Trade. Organization under
the United Nations—will
provide
the nations of the world with a
of
arriving at agreements
to the way: they do business
as
with
is
another.
one
In
a
world that
troubled
by serious disagree¬
ments and by the j ealous guarding
of national rights and powers, it
.
C'&lHt is
highly encouraging
representatives
.
of
so
that
the
many
na-
.
Charter
which
is
aimed
specifi¬
of the
shackles that have restricted in¬
ternational trade. All through the
cally
w,
duction
and;-
prices
stable. ?fv;7; 77:77:7,/ 777
last
at
removing
half
some
century and
especially
of
Government'?
flected
"No one expects that all - of
these objectives Pari be realized
as soon as the Charter is ratified
'
in
in laying; the op¬
process
j The
President
plans
for
the Chief Ex¬
particularly,
ecutive mast bear full responsi¬
bility for what is excluded as well
meet
programs
are
molded
in
the
what
for
as
interna¬
I As
re¬
as
is
included
in
the
Y';....
..
ale
citizons
to
permit an immediate
rec¬
affairs,
own
free
and
the
irj
a
recommendation
for; that
I.should like for
through'the
affairs
of
7y; y■
77:''
problem is
one pf estimating
great¬
possible accuracy and apply¬
ing to them the requirements of
est
the law., 7
of
7
7
In addition, throughout the rest
the budget there are : many
large, continuing programs which
k
a
few
moments to try to describe some
of the basic considerations.;.
Idordlrtheir
the amounts 16 be spent.;
over
',
..
of our position in the world,
yy 7 First of all, the Government of
the United States is a going con¬
by the participating: governments. 7'■
The. United States in the world
cern.
It- operates on-the ? basis of
The world has not recovered suf¬
today is a mighty nation. More
d / large and ■ complex body. oT
ficiently
from
the
destruction
important; it is a hatloir whose
laWs which have 'been developed
and economic dislocation of the
war
The
future work loads with .'.the'
you
amount?
light
trol
would be difficult to change o»
short notice.
For example, large
well know, the budget
public works projects are not sus¬
proposed for 1949 is nearly $40
billion!. You might well ask, how ceptible to rapid contraction with¬
out serious i economic waste,
la ¬
did it get that way?
What, is the the field of national defense, such
derivation of that figure?
What
aircraft procureare
the decisions which result programs * as
budget.
Budget, For. the
this budget has been
1949
shaped- attd
As
overcome.
j
the
year
he
c'onditi oris
and. domestic problemshave the utmost significance;. They
vitally affect our existence as a
strong and free nation.
reasonably
as
erating and1 financial
your enterprises.
government-
our
to
a;similar
con¬
tional
7y77/777
years.
These laws
are
the result of- the
mbnt,
.ship
construction
and
others; cannot be rapidly adjusted
within any one year.
.
a
* ;
These continuing programs have:
basic, momentum which
is re¬
the
flected
in
policy.
The responsibility: of the
budget year4 after
year.
They are hot sensitive tt>
the pressures of an annual budgetPresident is largely to insure that
the specific requirements of laws
expressed needs
enacted by Congress are carried
7 J ■
':;
:
out with efficiency and economy.
i The budget is an essential in¬
The President is, in the fullest
Substantial budgetary reductionsstrument in this ability of each
sense, the servant of the law* fie in ; most .of
citizen'to review and control the
the; areas of heavy
is; in duty bound to execute faith¬ fixed commitments can
affairs of his government.
only come
The
fully the provisions and - require¬ from
congressional action in re¬
countries to retain some of their budget document makes available ments of the law of the land as
vising the basic law,
to' him a complete and detailed
restrictions on trade if the restric¬
enacted by Congress; The signifi¬
tions are needed to cope with spe¬ plan for all government activity. cance. of this fact is clearly re¬
Budget in Light Of World Realities
And most important: no single
cial difficulties. ;777
vealed in the 1949 budget.
;v\
Bui the' true significance of tl>e
part of this plan can be carried
For example, rhore than $9.3 1949 budget does not lie in com¬
y "The Charter is important be¬
out without the approval of the
cause it represents a voluntary ef¬
billion is required to meet costs parisons of non-controllable and
elected
representatives
in
the
fort of the world's great trading
of pensions, tax refunds and in¬ cohtrbllable items. It lies; in the
Congress. They are free-to reject,
nation s to resist the strong ten¬
to modify, or to add to this plan. terest on the public, debt.
These fact that where judgment was ex¬
dency all over the world for each Every dollar mast be voted by the
ercised*, it Twas made with full
are fixed and inescapable obligatum to the
relatively: free condi¬
trading that
existed forty or fifty year's ago.
The Charter itself recognizes these
"Out of the long discussions at facts.
It contains escape clauses
Geneva and Havana has come a
that
permit
the
participating
tions have agreed on a Charter
they will recommend to
their governments for ratification.
which
t
programs
Director
business leaders, you go through
these commodities.- By means
Tonight, I should like sto talk
inter-governmental agreements, about the Subject I know best—the
much can be done to keep pro¬ Budget of the United States/ The,
This
Interna¬
tional
means
its
,
trade.
for
the
7
actions
Budget
the President
the obstacles to be
transcends
United Na-
reasonable
i The
With
steadfast will.
materials—wheat for example
"Representatives of more than prices for the buying nations. Pro¬
77,;'
fifty nations have agreed upon a ducing and consuming countries
alike suffered from sharp- fluctu¬
code to guide them in
working
together to build a freer and more ations in the prices and supplies
.
our
and
■■v7
-
''W'-s
largely
Works determined by the number of per¬
forniiu- sons eligible under provisions of
our ideal? relates, his operating "plans,N con¬ existing law. In all these caseBr
quires careful
siders the goals to be reached and the President has little or no con¬
defense of
judgment and
for buying and Selling certain
kinds of agricultural' products and
raw
amounts spent by the states large¬
;
The Preparation of Budget
! The preparation of the annual ly determine the Federal obliga¬
our
national
1
'j.,",'"
bhdget symbolizes the responsi¬ tion.
life.' Surely,
Veteratis readjustmeht benefits
bility of the President to- plan fo^
we can a ll tfie common defense and the gen- add* another $2.6 billion to the
agree that the
efal welfare.
budget. This amount is
nd
a
\ nation
it 7 possi ble' for'
out
Of "Our
nance
liberties
kinds' of
concerned, and
tional
r
controls on the amounts of certain
by
—-
mainte-^——
the
as
must
be ratified
the
for the second
prefacing my speech tonight with & rcferienge to the recent events in
I refer, of course, to the destruction of the Czechoslovakia!! Republic
time in 10 years.
These developments causi us to think constantly of
among • some groups of countries
to One another's products, and the
the nations
,
Europe.
the
Charter
v
Central
tariffs, import quotas,
import and export controls, the
preferred
treatment
extended
final
t;
-
I cannot avoid
articles, and
the eventual reduction of such re¬
as
as
„,.
„
Director Webb contends 1940
.Alter1
nations
:;
E. •tyfeBfc*
Director, Bureau of the Budget
¥
tions of international
their government.
-
of bur people.
-
•
during the past decade
,77
have
we
seen a
rapid' growth of trade con¬
Many of them,
oUr own export and im¬
port controls, were imposed dur¬
ing the war to conserve scarce
trols of all kinds.
such
as
materials
and
to
make
sure
the
limited supplies went to the right
places.
But world trade has been
hampered for several decades by
many other restrictions that have
been making it more and more
t difficult for nations to- get what
they need from other nations and
y/.v;V
to sell
their
goods freely in the
markets of the world.
.
;:
Prosperity
''
*
.
for certain kinds of manufactured
,
,
tions
to
to
set
up special regula¬
with its own trade
Carried far enough,
£<?ods
giant
being controlled by
combinations
of
manu-
Were
factoring concerns. They agreed
7/77 npt to compete with one an¬
;
other
in
certain
countries.
And
they agreed as' to the prices
they would charge in their carer
fully staked out markets. The re¬
sult was a loss of healthy compe¬
tition in international trade. One
of the aims* of the Charter is to
restrict and control the
of
operations
Congress before it
can
be spent
problems.
this trend would result in anarchy,
with each nation having its own
Grants
*An address
by Director Webb
before the Economic Club of New;
way
York, New York City, March 4,
no
1948.
of doing business, and with
generally recognized rules of
trade among • nations.
7
"We
lieve
in
the
United
States
all nations and will lead to
the
programs
amount to an additional
$2.3 billion, -1 finder the laws es¬
tablishing
these
programs'
the
of the realities of tho
world situation.
The
1949
to
budget is geared not
the United States
(Continued
on page
in the
36)
be¬
a-
-
-
'
This announcement is not
7 "
•
'
-
-
offer to sell or a solicitation of an offer to buy these securities*
offering is made only by the Prospectus.
...
an
The
v
,
$4,500,000
bet¬
life
for our own people and
people of the world." J
The California
The
following is the off'
summary of the ITO* Charter,
isiied from Havana, by the De¬
partment of Public Information
of the United Nations:
y 1
¥
:
awareness
states for long-term
to
in
competition: We believe
in reducing controls on business
to a minimum. We have taken
ter
tibns established by law.. .?7
cope
only be promoted by the freest
interchahge : of- goods between the lead in encouraging the estab¬
lishment of an International Trade
nations.
"
"As early as the first two "dec- Organization because we believe
it is to the ultimate advantage of
ades of this century the markets
can
-
nation
Oregon Power Company
1,
CHAPTER 1
^
Purposes ahdf Objectives
7
interest
'
The
fii'st
Chapter'
(Article! 1)
states in5 broad terms the purpose
these- international
trusts; or and objectives of the Charter ahd
The: purpose is -de¬
r •*; 'LV ;7 of the- ITO.
fined by reference to Article 55
,77"Another aim of the Charter is
to make sure that government- of the Charter of the United Nar
tions.' The objectives are listed
operated * trading enterprises are
npt given special privileges, that as:
work to the disadvantage of pri¬
(a) To assure a large and stead¬
vate business.
They are to be ily growing volume of real in¬
Subject to the same regulations come and effective demand; to
hud to the same trading Condi¬ increase' the
production,
con¬
cartels..
tions
as
traders..
/;7/
■.
'•7 '; 7,;:>7,-;
those that govern private
-
•
"The Charter provides also for
sumption and exchange of goods,
and so to' contribute to a bal-
(Continued onr pagP 34>' ^
'
J
'
.7
The Prospectus may
;
";v
be obtained in
any:State iff rvhictthis announcement is circulaled only from the
as
may
lawfully offer these-securities in such State.
HALSEY, STUART & CO. Inc.
.,n:
April 1,1948.
'17 *
20
(1436)
THE COMMERCIAL
&
FINANCIAL
CHRONICLE
Thursday, April 1, 1943
What Should Be Done About Russia
'
"
By H. MURRAY - JACOB Y *
Formerly U. S. Ambassador-at-Large
By WILLIAM J. McKAY
Since
the
made slow
introduction
of
the
austerity
but nevertheless -definite
Former
Canada
measures
following her efforts
progress
only
the imbalance of trade with this
country. The Dominion's
reserve of gold and U. S. dollars
mounted at the end of February to a
total of $527 millions from the3>
—
December low level of $461 mil¬
to correct
templated
lions.
This
^improvement,
more¬
is not the result of
over,
negative
cf U. S.
of
measures
merely
restriction
imports but is also
of expanded U.
sequence
a
con¬
S. dol¬
lar-earning exports.
The Dominion is not content to
rely on external factors to im¬
prove its foreign exchange posi¬
tion, but is planning independent
steps to increase exports to hard
As
stockpiling
war
south
of
the
would
also
operate to Canadian advan¬
tage. As the world's leading ex¬
porter of base metals it is logical
that the Dominion will be
called
a
concrete
ex¬
ample, Ottawa is now adopting an
export incentive plan, ;■ whereby
interesting to note
Company of
Canada has reopened its Shawinigan Falls No. 2 plant as a result
of expanded U. S. demands.
In
the
Aluminum
this field also Canada
play
can
a
industries in; particular, will be
encouraged to expand their sales
south of the border instead of
aluminum.
the
automobile, f electric appli¬
ances, radio and office machinery
on
the
domestic
con¬
mar¬
ket. The most encouraging devel¬
opment in this direction to date is
the
'
arrangement. made
by
the
newly established Studebaker
Corporation of Canada with the
parent firm in this country, as a
result
of
which
the
Canadian
branch will handle the bulk
Studebaker's foreign business.
Thus
In
ternal effort and
the Canadian U. S. dollar
on
reserves
as
it depends on U. S.
imports for a large proportion of
its requirements.
Previously there
has
been
no
compensating offset
but with the operation of the new
incentive plan
whereby the Cana¬
dian automobile
industry will be
given a higher U. S. dollar quota
in proportion to its
expansion of
hard-currency sales, it is expected
that other firms and other indus¬
tries will
follow the
soon
baker example.
Stude¬
constructive attitude towards her
current economic problems is the
announcement by Reconstruction
Supply Minister Howe
that
during 1948 approximately $2,800
millions will be spent on
types of
{oods, which will tend to increase
the
Dominion's productive capac¬
ity. This figure represents an in¬
of
crease
17%
the
over
capital
goods expenditure of last year and
the
largest amount
in
to
be
improved
external
devel¬
opments the Canadian foreign ex¬
situation
can
be
now
viewed with a greater measure of
optimism. The Canadian authori¬
ties, however, are fully aware that
the corner has not yet been def¬
initely turned and there will be
no
to
relaxation of the current drive
and
conserve
U. S. dollars
earn
until the deficit has been reduced
la
During the week
the
pendent
tion
coming year which
currently estimated at $500 to
$1,000 millions. In addition, con^
are
of
the, bopd
dull
and
nals
fluctuated
rading
inactive
external
market
and
a
narrow
Free funds also
steady and the proceeds of
wore
sales
range.
of
registered
readily absorbed
quirements.
by
were
current
Canadian stocks
in
stronger
bonds
sympathy
re¬
were
with
rend in New York led
s
a
dustrial and base metal issues. The
golds
also
recent
cifies
decline
were
and
Canadian
Pa¬
strong feature
a
of
consequence
rate
after (their
recovered
the
as
a
rail-
recent
increase.
v-v.;.*
Grimm & Co., Will Open
Br. Office in
Orlando, Fla.
alive.
Stock
fice
Exchange, will
at
145
Associated
North
with
will be J.
York
Main
Street.
new
branch
the
Don
Haggerty, Sidney
W. Haley and Bert S.
Long. All
were formerly with A. M.
Kidder
&
Co. and Cohu & Torrey.
CORPORATION
•
CANADIAN STOCKS
are
and
for
probably
the
,
20
last
On Jan,
time.
when
year,
with
the firm in the
has
been
associated
Chicago of¬
Beach
Palm
County
H. Murray-Jacoby
Fed-
President
incorporated
•
that
f
-
The New York Stock
Exchange
has announced the
NEW YORK
5, N. Y.
changes:
'
"
'
•
i.
.
'
'
following firm
N
NY-1-1045
President
man's statement that he
as
an
Ex¬
change member firm on March 25,
when the
membership of Leland
M. Kaiser
was
G, Carhart.
transferred to John
reconciliation
at
'■
'Times."
On
April
the
2,
N.
1939,
"Times" gave
me
a
terview
the
headline
with
Y.
the
full-page in¬
"Left
danger seen in South America;
Ex-Envoy urges counter drive to
Propaganda
of
Dictator
like
Ger-
internal dangerJfrom
Communism,
anbther
word for despair.
And
while without doubt
we, with our
superior resources and organiza-
tion,
would
in
in
it did in other¬
as
countries
between
would
fail,
we
philosophy
through
certainly
cost
win
of such
a
gigantic
so
effect
victory.
It
we
defeat
then,
•'
merely render lip, service to the
Sermon
never
the Mount which
on
a
was
;visionary dream but
in
that
Winston
Churchill fchbrtly thereafter
ihade
suggestion of a Truman-AttleeStalin meeting, probably sensing
the
..
I
as
did
chance
that
to
..
.
this
avoid
.
was
a
sia
a
as
Mr.
given
to
Truman
mankind.
in
says
And
if
address .i
his
that the
door is always open for >
talks, the American i eople
peace
should
let
takable
him
know
in
unmis¬
language that he
should
break down that door.
^
our
Commu¬
reconciliation
with
Rus-
world power, not a
com-
promjse wjth
last
our
about
is
Communism which
something totally different. The
shooting war.
This suggestion was ruled out by
iaj.e president Theodore Roosevelt.
^r"
tAt£ee mand'
also
knowledge of travel and Foreign
further
is
a
unfortunately>,
Truman,,■■■
by Mr.
It
a
Premier Jan
'affairs
significant
Smuts
of South Africa in
of the
that
Union
recent
speech
pointed out that apparently three
great systems were shaping them¬
selves
through an evolutionary
which
process
a
we
would
have to
its
stage
the
On
*,r
We
are
but
we
March
5th;; tne highly
publication,"U.
sponsible
carry
last
big
a
showing clarity.
Stalin
still
does
not
precisely how far hp
without
inviting
war,
sociates,
v/ould
have
can
democratic
our
been
in
stated
a
m0ve
the
clearest
should
we
front
'
page-
to.prqduqq
statement
an
entirely different
door)
inn. our
Russia.
negotiations
Finally,
meeting with President
with Russia would
The purpose
have
to
try
to
find'
basis for
armistice in the cold !war between
a
An
emmissary
of Russia's Premier made the
pro¬
posal. The American Official who
not
travel
to
Russia.
The
made that
was
with
people should be
our
sought
was
realize
to
just
mean.
annual* cost
an
ment of forty
what
of
war,
We
now
govern-
billions." We do not
feel this too much at this moment
national income, the inproduced by all the people,
is around $190 billion. But if we
as
would
boom
fall
billion,
$86
down
level, of
to
the
when
1929
half of
-
super
it
was
income
such
a
would
to
go
the
support
of
the
government;1 and if it were to fall
between
to
Marshal, Stalin
Truman
was
and
:carried
to
George Marshall, U. S. Secretary
of
State.
It
came
on
the
initia¬
The
decision of President Truman and
DTalk
by
Mr* j Murray-Jacoby
before the, Kiwanis Club, Delray
Beafch, Fla.; March-25, 1948.
*
.
in
the
Gap—
war
Britain — British Information
Services,
30
Rockefeller
Plaza,
/
New
York
20, N. Y.—paper.
Economics of Money and Bank*
ing,
The—Lester V, Chandler—1
Harper & Brothers, 49 East 33rd
Street, New York 16,' N. Y.—-
cloth—$4.50.
,
Production
lected
Cost
Trends
Industrial
Areas
in
—
Se¬
Philip
Neff, Lisette C. Baum. and Grs»/«e
E.
Heilman—University of CaliPress, Berkeley, Cant.—
fornia
cloth—$4.00.
;
1
ion-Provincial Fiscal Relations fit
Canada—James A. Maxwell—Na¬
tional
Bureau
of
Economic
Re^-
search, 1819 Broadway, New York
23, N. Y.—paper—50£.
1 to f r
our
come
meeting be held in Stockholm.
Proposal for a Stockholm meeting
President
Battle* of
Recent Developments in Domini
j
made
apparently
Avenue*
*
>
•
'/"Joseph Stalin, late in January,'
a
Conference
Park
invite
now
combined
with atmosphere and climate so that we
"World Report? and published by ;
could
expect some cooperation,
David Lawrence in Washington,1 and: toot
as heretofore the
closed
a
Britain's
as-
mean
,in this connection-we would have
News,"
Gainsbrugh—Na¬
247
Discussion of aftermath of the
We
line which if violated
war and this should
a
Inc.,
definite line
a
language. But simultaneously with
S.
R.
neither.
showing firmness
not
are
done
Board,
Rusia to: freeze the status quo and
re'
at
and
have
together with
~
M.
Industrial
(lower rates for quantity orders.'
softly
We
-
that these systpmg wpuld have to.
sucb
each other.
tional
"Speak
should have drawn
Asiatic
and
man
New York 17, N. Y.—paper—$1.00
go
toat* i$o^necessity existed
2?
and
up,
ration
concepfeonicftom the other
go to war with
it
summed
Behavior of Wages—Jules Back-
much
know after the President's decla¬
whichbe different
powers
with
j have quoted it now for two
years
r
as the desirable American
Policy:
Marshall
realistically: Our Free En¬
terprise System and that of the
other
free
democratic
nations;
the
Communistically dominated
systern; and a system yet to,the
American
once
stick."
look at
formative
vjg0rous
;
i
.
•
-,vjU
Should Fertilizer Production Be
Subsidized?—An
analysis
of
the
National Soil Fertility Act of 19(47
Richard Bradfield
American
—
—
Enterprise Association, Inc., 4 East;
41st Street, New York
17, N. Y.
—paper—50£.
/to
<
the
billion,
could
depression
no one
keep
situation
sia.
If
now
would say
as
ex
on
create
economy
war
top
a
debt
Rus¬
this
as
we
large
a
war—say
an¬
could
our
—
.
.
•
•.
-
-
Spinning
..;
$460 billion debt
Rayon
Staple
ii?;
on
the
Cotton System—Research
Depart¬
ment, American Viscose Corpora¬
tion— fabricoid
copies will be
sent free to all technical
qualified
people who request it of Ameri¬
—
can
last
billion
stand
with
of
■.,
$44
dollar. This is the
that of the
other: $200
of
in the United States
a
rosy
figure
'
:
fact the most practical instrument
ever
on a scientific,
digni¬
basis, ex-mud slinging and
ex-war mongering. What we need
then are three things: Firmness,
Clarity and a willingness to bring
:
V; v
significant
of
-
we.
should explore every avenue that
may lead to peace. We should not
fied
among the democratic pow¬
is
that
)
over;
that
suffer
Thus
•
I
victory i
nist Russia
system of protective quasi-alli-
ers.
and
«•
France and Italy and that j
then and then only we would face
be
offset
should then with top speed create
X-i-Vi v'U -.V V-D
■A'
quoted
normal
would
nonsense
answer
many,
would
its
attacking Lenin's teachings
first
haywire just
wise
in¬
that
indebtedness
entire economy would
our
Apparently,
insists
.
was
go
accumulated
around $1 billion. The
the
Protocol
mine
entire
Russia
David .Lawrence's
Emily Post
some
when
ing to meet Stalin at any time in Powers."
But at all times I felt
Washington was not enough; and the
necessity to explore the funda¬
thirdly, that if such an attempt mental difference
,
Mr.
rubbish.
I began
writing against Communism in
April, 1919, when a statement-of
Tru¬
tive of the Russian Premier.
Kaiser & Co. retired
was
willing to gamble the lives
for
and
will¬
was
would
Exchange
Weekly Firm Changes
the, proposal
S. News"
cans
meet¬
a
City office at 44 Wall Street.
New York Stock
a
of some ten million
young Ameri¬
and
received it'replied that^Mr. Tru¬
man
had made it clear that he
TWO WALL STREET
WORTH 4-2400
Truman
Stalin; that such
and
that
far
we are
ing should take place at a neutral
point
secretary,
press
formation is correct.
Clubs, I made
three recommendations of a policy
to
be
pursued towards Russia:
First, because of an imminently
pending takeover of Czechoslo¬
vakia, the Marshall Plan should
be passed without delay and in an
unemasculated form; second, that
there should be a direct meeting
Marshal
is
"U*
;
eration of Women's
between
a
.
suggestion then
A.E.AMES&CO.
is that
through
So
at 135 La -Salle Street. Mr.
Denton has been in the New York
fice
too,
addressing the
U. >S. and Russia.
Abele
was
Stalin must be held, if it is
held,
1n Washington. The President re¬
iterates that attitude."
this
of
that there have been 'peace feel¬
ers' from Russia. The White House
brought to Washington and turned
down.. Mr. Truman insists that
apy future meeting with-Joseph
elected
Mr.
y
you consider that from the
;
time of George
Washington up to £
the outbreak of World War I our
fact
Truman.
Vice-Presidents.
not
Secretary Marshall was to rebuff
the suggestion. A technical denial
is made by the Secretary of State
meeting had been proposed. The
at
Blair & Co., Inc., has announced
that Harold W. Abele and Rich¬
ard W.
Denton, Jr., have been
assistant
peace
tended to discount reports that
which, because of its importance,
I wish to
quote at length*
'
Blair & Co., Inc.
Elects Two
MUNICIPAL
be
more
made
GOVERNMENT
k
the crossroads
Grimm &
open an of¬
y
We
once
in
—
Co., members of the New
PROVINCIAL
r
much
very
the
by the in¬
Jan
and
a
would
was
the inter¬
within
ORLANDO, FLA.
CANADIAN BONDS
M
na¬
,
section
still
inde¬
an
ances
following
E.R.P. expenditures in the Domin¬
ion during the
would
be
a
to manageable proportions.
history..^
Apart from Canada's own ef¬
forts, the overall situation is cer¬
tain
the combined effect of in¬
as
change
*
>
A further indication of Canada's
and
ity in the mining industries has
also been increased recently as a
result of the Dominion's vigorous
immigration policy which is now
operating to reduce the chronic
labor shortage which plagued this
industry during the war years.
of
the normal way the Canadian au¬
tomobile
industry constitutes a
drain
The Canadian productive capac¬
<
Russia, and says President Truman should
talks, but "should break down the door."
Czechoslovak-
connection it is
leading role especially in view o,
the stepped-up demands of the
U. S. aircraft industry and the
Canadian record during the wai
as
a
major supplier of low cost
centrating
have
to boost still further its pro¬
duction of strategic metals. In this
that
with Rus¬
war
with
war
spoke to you in October of last year, I said that President Truman should never
permitted Congress to. go home but should have kept it in session so that the ERP would
had a chance to be
passed in the Fall.
It is my conviction that had this
happened,
have
opera¬
border
door for
open
*
to avoid
When I
.
upon
f-
currency areas.
tions
-
meeting of President Truman and Joseph Stalin in effort
urges
Warns of disastrous economic effects of
sia.
has
diplomat
Viscose
Corporation,
350
New York 1, New
their business letter¬
Fifth Avenue,
York,
heads.
on
"
.
*
*
*,.a/'
-,.l....
.Volume 167
THE COMMERCIAL
Number* 4686
&
FINANCIAL
CHRONICLE
(1437)
21
■A 2 Recommends Enactment of Bnffett Bill ;
Members of Economists' National Committee
>
approval of
express
Prof.
v.
Waltei
E.
Monetary Policy
on
,
to restore gold coin standard.'
measure
---.y.v
U
"•
Spahr, Executive Secretary of the Economists'
DyHOWARDT.'CUMMING*:":
-
y-y
-
;
President, Curtice Brothers Co», Rochester, N. Y.
?
National Committee
on Monetary Policy, having offices at One Madi-f
Avenue, New York City, and comprising in its membership, some
of the leading economists of the country, has made public,a state*
ment
<•>signed
thereby helps sustain the confiby42 mem-
•
President, National Canners' Association
'•..
son
In. reviewing world and domestic food
situation;
♦
.
bers,
recom¬
mending - the.
Bill
ft:
intro-
;
dueed by Rep-
"f
flow
a
BENJAMIN
Buff
and
BELL, /"
;
Northwestern University.
CLAUDE L. BENNER. Continental
ett
icle"
of
Jan.
The
Bill
"
Insurance
L.
E.
Spahr
RAY
P.
♦ARTHUR
restoration y
in the United States
gold coin monetary standard.
The text of the statement follows:
1
We,
:
the
undersigned,
members
of the Economists' National Com-
mittee
■
on
Monetary Policy, recommend enactment of the Buffett
•
Bill. H. R.
5031, for the following
Washington,
Thalmann
-
to
which
pay
cannot
regulations
therefore
tion,
if
should
honored,
laws and
present
be
honored,
and
are
No
na¬
dishonorable.
it
avoid
can
its
permit
banks
not
are
under
doing
Our countrv
so,
Treasury
to circulate such
and
(II)
Although
♦ROY
California.''
roundabout
a
irredeem¬
system
Federal
Reserve
ba^ks
back
to the gold held by the Treasury,
their circulation in the* form of
irredeemable
paper
!. mits and invites
-money
per*
much freer and
a
'
less
responsible issuance of cir¬
culating media than would be pos-f
sible »f promises were redeemable
in gold
Our present
demand..
on
system, consequently, contributes
a depreciation in the purchasing -pmver of our dollars in terms
of goods and services,
;
i
to
•
>
Jf. ^ jllj) Restoration) pt
monetary
a) js^old-eoin
and
system
standard
would return to the peoole
degree of direct control
!
government's
public
and
a
high
the
over
would
help
members of Congress free them¬
selves
;
of
they
in
:
groups
which
are
dominant factors, if
not the dominant factor,
are
the
.
spending
money. ?■'
••
♦
(IV)
the
of
♦JOHN
'
Emeritus,
MONTFORT
;
University
The
JONES,
'
Of
Two and
KEMMERER, University of
<
V.
L.
Illinois.
KIEKHOFER, The University
Wisconsin.
: .: v
WILLI\M H.
of
WILLIAM
KNIFFIN, Bank Of
H.
E.
A.
University of Illinois.
University of Southern
>
,
/
,
Commercial
and
Financial
Chronicle," N. Y. C.\
H.
State•
^;'r
and Irvine, N. Y. C.
MoKINLEY, The Pennsylvania
Lumbard
Newton,
DAVID
; ': ;
MCDONALD, Donovan, Leisure,
♦ROY W.
College.
MELCJUOR
.s<uV
•
.
.
PARKER,: University of
Pennsylvania.
''y: 'V.
CLYDE W. PHELPS. University of'., y;:
i Southern California.
CHESTER A. PH If .LIPS, The State;
!.
University of Iowa.
•
LELANO REX ROBINSON, 1G Beaver , St.,«
n. y. c.yr
yy
r. g, .rodkey. University of Michigan.
olin glenn saxon, Yale University,!
FRANK
carlton
...'■■■:.
University.'
:
*,
.
Western Reserve.
EDWARD
MAX
The
WinTNEY.
E.
Gamble
and
Procter
Co., Cincinnati. ;,y
y
f.
y
WIEST, University of Kentucky.
WINKLER, College of* the City Of York.
;'r
Lyy../-..'yyy y'^yy -v
.
New
minor
•Indicates
in
mended
text
changes
of
bill, x>r
'-are
in
recom-
terms -of
endorsement.
Restorat:on of
gold-coin
a
;
States would not only reestablish
;
integrity in
the
industry
pay
Mn D. Hines With
Deal Witter in N. Y. C.
'
;
'
bfjj,
;
weather,
*
ocaer; ty
restore
further.
favor¬
of
of
years
world
fooa
vIt is
re¬
a reai-
sonable assumption that until the
food-producing nations of. Europeregain economic and political staibility their requirements for im*
ported foods* will remain at a
high devel.'.;?
7-";v
Foreign' Food Demand
pect
munition
a
diverted
to
making
The demand for food
demand
two
fand
.:{(V) Action now in restnrm g a
•'gold-coin monetary standard
Industries
armaments.
aged greater food production and
supply in this country in recent
years has been the development
of whole new industries within
great
was so
plants stand ready and willing to¬
day to produce at a wartime rate,
if
fants
always
this
•'
things
turned
should
out.-
become
they
Their
the stimulus of
wartime
a
broke5 all
vegetables,;ft.-?h and meats has de*
high prices and
demand
and
of processed foods
their previous production records,
This advertisement appears as a matter
;be
consume
$100,000,000 worth
annually.
% •
They quick-freezing
of fruits,
necessary.
Our farmers likewise reacted to
(Continued
37)
on page
ofrecord only and is under
no
construed
us an
The
:
circumstances to
offering of these Shares for sale,,or as an offer to buy,
itsolicitation of an offer to buy, am of such Shares.'
,
;•
offering is tirade only by the Prospectus.
;
,
the United States
should prove of strategic aid in
wbrking toward a greater freedom
c
from
three
or
'•k.v' f. i
years.
It would be a mis*
take, however, to count on smooth
sailing in bur attempt to satisfy
that demand. Some &f the peoples
abroad who have the greatest need
100,000 Shares
7
:1/ •' iio
be able to make
purchases because of their inabil*
ity
1
earft
may
v
v>'.
'
or^'
not1 have
ation than
have
we
^
•
,
t-r
'
w
•
.
•
; ; -
..
:
if-..-,
■' /
'
.•..
.
•
;
••
\
••
tion
^
i K:r; ■ ■ :-v;
Common Stock
world
;
known sincb
the
•
MHSMi Company
borrow money.
access to
political barriers.
Consequently,- iti 'spite of a po¬
to
Others
,C A- ;
The California Oregon Power
for food may not
(Par value $20 per share)
v;
.
Price $21.50 per
share
Government
war-born
-
i'., ,i;
programs.
work worthy of
f from regimentation.; Of necessity,
this; involves srraoping or sub-
4'A
■
-
in
any *;
;
■1
Copies of the Prospectus, may be obtained from the under'
signed only by persons to whom the undersigned may legally
offer these securities under applicable securities laws.
;
.f
"
;*
Vi
pecial consideraf
discussion
,
of
this
"
•starttially
mod;fving
anv
subject.
svstem
I
of "managed" irredeemable naner
m'onev which
developed
.
accompanies highly
schemes
f- mentally-managed
of
countrv
our
in
point
creased
lion.
are
economy.
historv.
during
at the
ratio
These stocks
and
adenuate
med?a
/
on
provided
•a
in
are
use
ample, in
to
back
an
volume
a
of
circulating
fully convertible basis
our
reasonably
the
amount,
in¬
of
government follows
prudent course in
public
funds
and
and
$2% bil¬
bv
•
John D. Hines
highest
thev
and
1947
^ : sV
&
commodity
nounce
that
John
D.
war
an¬
Hines, for¬
an
pand
with
reach
extremely
Total
was
■
high
t
come
associated with the firm
as
registered representative in the
New
York
New York
office, 14 Wall Street,
City.
.
Corporation
Cental Republic Ccmpany
(Incorporated)
> ;
in
Chamber'1 of
S. A.-, St. Louis,
Mo., March 12, 1948.
.-
-.
v
*
First California Company
Walston, Hoffman & Goodwin
Davis, Skaggs & Co.
1947
prewar
*An address^ by, Mr. Cuirmqing
before; the'1 National ' Marketing
Commerce of
Dean Witter & Co.
-,
Graham, Parsons & Co.
Elworthy & Co.
,
.
of! the
|
Schwabacher & Co.
^
•
production
of
J
HI
Conference
Kidder, Pea body & Co.
„
and
levels
larger than the
merly with Kaiser & Co;,- has be¬
a
The First Boston
.: >
ex¬
greatvi rapidity
food
41%
ability to
.is
production.
exchanges,
C°m Inc.
To, begm withi^agriculture and
during the.
govern-
♦»!l(VI) The monetary gold stocks
of
.
,
the food industries 'demonstrated
'
:
<
c
ex¬
only influence af¬
fecting our food production and
supply today.
In : this: country
there are specific influences; at
•
in
Food
Another factor that has encour¬
the food industry.
We are the
only country in the world whose
very young babies are.fed so-ex*'
tensively from cans and jars. In*
producing ; those
on
had
tion is not,the
!
svstem
war
were
A'The impact of the world situa¬
commerce. ;• x
and
of
New
they simply put on pressure,
expanded their facilities, and kept
processing inJ-
for at least
'I 'support
*:>k'
,
Food
that
%
country may
continued
a
abroad
itself
problem.
and few food manufacturers
V;
Farmers and food
in
was
several
to safe levels;
reconversion
no
good, crops will l?e pegessary in
lus* -of
%■
constant
v
being assisted by
improvements
in
the
are
—
beginning of the war.
That
issued bv the Treasury and Fed¬
Dean Witter & Co., members of would be particularly true if, iti
eral Reserve banks but it would
the face of a possible declining de*
the New York -Stock and Curb
prove helpful in providing leadmand, agriculture continues to be
Exchanges and other leading stock
ershio for other countries which
subjected to the artificial stimu¬
promises to
still
and
■
own
demand, we might
find ourselves approaching a more
balanced supply and demand situ¬
;
y
possesses
still
crops
able
tential
are.stmegling to reestablish sound
•bases for their money/ industry,
v;
My
food because of
people's
monetary standard in the United
despitev labpr shortages arid other
handicaps. :^-Ttiey >.\aCddmpMshiey
this by dint of long hours,
"sweat
and great ingenuity. They were
more
^
,University.
NATHANIEL
.
has
.
.weisman,
ru*sell
;,
food
conditions
dusti ies in this
University.'
Louisiana State
JAMES >R.'TRANT,
1947
under
v
^:y..,y v.:■>,.
SPAHR. New York
can¬
contend
half year after V-E
a
Even
shively, "The New York
a.
Sun.'",
WALTER «.
war
serves
Ulincis,
Chicago,
PALYI.
we
only about 80% of the pre¬
figure. Unfavorable weather
was
/
' ;;
——-—',/yy■/':n" h•
*—:
period;; vegetables, meat animals
and poultry increased by 50%,
fruits by 30, and dairy products
by 20%..
' •
/.
Day we find the world food scarc¬
ity more acute than at any time
in recent history..
In; 1946 food
production
in
Western
Europe
reduced
Editor,
Executive
MAY,
WILFRED
"The
•
I.
LEE,
L.
LEONARD,
California.
♦J.
:
—;—:
no
real peace
attained as
thus
supply
world-wide significance;
*
Pittsburgh.
but in
niemory,
i
HOLDSWORTH, The
University of Miami.
from
.
v
">
.
have already faded
war
*
•
HICKS, University of
C,
THOM
DONALD
•
'ffA-A'A'
v
■
•
HAUHART, Dean
Cincinnati.
relentless drives
the
among
'i.'
Methodist University.
FREDERICK
pressure
-
y
the
from
.
■
1
Yale
Research.
F.
Southern
abuse of the
use and
purse
WILLIAM
in¬
of
direct convers:on leading through
the
/ V.
Co.,
&
HANEY, New York University.
H.
1
dswnward
technics of growing. The better¬
canning—
ment of their varieties from the
practically doubled its ouptut, in¬
peace. : But it
creasing its production from 260,- standpoint of both quality and
is playing a
000,000 cases of canned fruits, disease-resistance; the discovery
of more effective
•leading
role vegetables and
insecticides; the
juices in the pre¬
r and
will con¬ war
of
more
efficient
period to about 500,000,000 development
tinue to do so
cases
in 1946, and this does not farm equipment; and the spread
it as we persist include the
of
greater
knowledge
among
large quantitiesof
in our effort
canned
milk,
meat
and
fish farmers; all these make for a
to bring peace
packed. That high productive ca¬ greater potential production on a
into
t h e
acreage
with
a
given
pacity
exists
today.
Generally given
> world. Food
amount of labor.
speaking, food manufacturers had
HARWOOD, American Institute for
C.
FREDERIC
these
able oromises to pay are currently
maintained on a paritv with gold
by
v
writtem the
Ladenburg,
-
Axe
Rockville Centre Trust Co., L.
practices of this kind.
v;
t a n't
p or
that
,
University,
Li GARIS, University of Southern
LEWIS
promises.
and should avoid
ran
Co., N. Y. C.
W.
,,
'• .'X
•
CUMBERLAND,
&
Economic
(I) Most of the paper money of
the United States carries promises
United States,
Inc., Tarrytown, N. Y.
♦FRED
R.
FAIRCHILD,
E.
y
not
the
a
slogan "Food will win the War and write the Peace/
won the
war,, but we do maintain that- it played an alb
1935-30. average.
Production, of
food grains doubledduring .cthis
yet,
ELLSWORTH. E.
W.
D.
reasons:
•
m
-
D. C.
W.
;
y
part < in r the
victory; With
CRAWFORD, Chamber Of i
of
Commerce
WILLIAM
profits pf producers excessive*^ However, looks for
or
processiiig/
under farm r parity- gvifiiilee^ • find r >*$■
program
still recall the
we
i
j -J.
CALHOUN, University of
W.
government: food
plentiful future food suppfies.
more
We cannot claim that food alone
,
Missouri Valley College, i:
CABLE.
WILBUR
Cincinnati.
a
{
' t
*
;
Co,,
FREDERICK.. A. BRADFORD;' Lehigh
University.«»;»
J.
Walter
Canners Association's executive stresses* continuing
postwar expanded U. S. food production and
as
Many bf.tfie early events of the recent
the food business
v ;
New York City. -
BOGAItT,
out of line
'
provides for a
of
price tendency arising from
Wilmington Delaware.
ERNEST
"Chron¬
28.
Life
American
printed
the
WASHINGTON
JAMES
in the issue of
•
denies food prices
;■
I
.
,
•sSmL
dangers in
; :
are
well
as
University' of
California at. Los Angei<est
C. ARBUTHNGT; Western
Reserve University.
(Rep.-^Neb.)
•
"K\'
....
ANDERSON^
M.
\^'
Harvard
ABBOTT.
.
Points put deficiencies and
CHARLES
d'
i
"
•University..
,
resentative
•
A
SIGNED
CORTEZ
CHARLES
(H.
9031),
1
of
money.
enactment
of
the Buffett
4
the people in their
;-VA-V* tf.•;
I'.
j dence
.
'
foreign demand for American foods
y
*
:
Brush,
Slocumb & Co.
1
;
■
f
^
'/y
Hi.
-
,
J
April'1,
Lester & Co.
/'
M-'rro U>"it :lrr
iCf
Foster & Marshall
Wutff, Hansen & Co.
qid'-:
b
Maynard H. Murch & Co.
.ii;
THE COMMERCIAL
22', (1438)
CHRONICLE
FINANCIAL
&
Sees Serious
We Must End
"Creeps
ing Munich," Declares
Securities Salesman's Corner
Bryn Hovde asserts
article entitled, "Is Salesmanship
an
Securities
National
<31
Douglas Laird, Vice-President
Corporation, made this point:
Research
&
SALESMEN
ALL THE
TOMBSTONE ADVERTISING, AND YOU WILL SEE
DEPRESSION
EST
as
well
as
THE GREAT¬
MANKIND."
HISTORY OF
THE
IN
rope can
"Chronicle" and
gram
But to go
on—the point Mr. Laird makes about the place of the
national life—all salesmen, not only securities sales¬
men for that matter—is so
absolutely true that we wonder how any¬
one could fail to realize the
importance of his work if he makes a
living selling. Yet, time and again, we have heard men depreciate
the work they do if they happen to be salesmen.
We have heard
others say, "Oh, he's only a salesman." We have been present when
some men have been asked what they do for a living and they have
answered in ?. self-conscious sort of w^y.that they, just do some
"peddling." Self effacement and a subconscious feeling of inferiority
salesmanship is
art and
in sales
men
work—as well
the
about
it
minute:
a
entire
our
machine
economic
t'fy
>
Before there
<
*'
'
jobs there must be
machines, tools, facilities—before they can be obtained salesmen must
convince others to part with money to finance these things (that's us
boys). Then salesmen must sell the stuff after all the rest of the
are
people dig it, convert it, style it, change its form again and again,
keep records about it, ship it, wholesale it, retail it, and if there was
to sell it when people didn't want it, Mr. Laird
no one
you're right—
immobility that is called a depression would
frequent condition of American life.
that state of economic
become
a
more
They say an egotistical man is in the long run his own worst
But there is a vast difference between having an understand¬
ing, and an appreciation of what you are doing as you walk through
life> and being a pompous blowhard. Th man who knows he is good
N
>
because he has studied his job—made a
go of things when obstacles
have appeared before him—studied
through his own mistakes and
developed a technique for accomplishing his objectives—that
has a feeling of confidence in his own
powers that?'will enable
to make
a
out
success
of his job and his life.
who ARE EXPERT SALESMEN
is
a
man
field of activity in which they are
engaged—they
wouldn't allow any man to
place them in a position of inferiority—
'v: There is
a
reason
this little column
at this time
Not only was I impressed
by Mr. Laird's insistence that selling securi¬
ties was a most laudable
way of Earning a living (for my part as great
a benefit to mankind as
any of the professions, or other lines'of busi¬
ness
that we undertake in our free
land) but I believe that the
thought I have expressed here is indeed timely
right
now. For many
those of us who have continued in the investment
securities
business have been under attack
by our own government officials,
by assorted demagogues and by leftists and cranks of
every persua¬
sion. We have seen our
business, and our
years,
maligned and caricatured until it is
asked
what
we
no
do, have answered
"Well, I sort of work
in
in Wall Street."
way of
wonder that
a
making
some
self-conscious
a
t h
sort
don't sell, THEY DON'T
EAT!
ROLL BOYS WHO
THAT GOES FOR THE PAY¬
WORK FOR THE
SELVES
COULDN'T ACCOMPLISH IF THEY
STUDIED THEIR
LAW BOOKS FOR
ANOTHER FIFTY YEARS. Ours is a
good busi¬
ness
never,
business will
forget
come
it—and
the
to you.
more
~ ~~~
you
believe
~
this
-'
,
the
more
I
.
.
McDonald & Co. Adds
to
The
Financial
CLEVELAND, O. — Robert J;
Ress is with McDonald
&
Co.,
Union Commerce
Building, mem¬
bers of the New York
and Cleve¬
land Stock
Exchanges. He
was
previously
with
Co. of Davenport.
White-Phillips
to
The
Financial
ciated with E, ,F.
160
Montgomery Street. He was
previously with Walston, Hoffman
Goodwin
& Co.
.
v.;
and
Dean
Witter
ly t-,)r
structure and
the other eonoitions that tenc
discourage the performance
ol
^fal :f
woulcLhaye ^mewto^he j showed
ERP despite Soviet Russia a year
and
naif ago.
a
Dr.
blamed
and
cond.tions for
central
lack
|
European.
the-
of
I member
forced to resort to
W€re
C^crj;
to
meet
j
commer-
capital
some
that. should
requirements
have
been financed by the sale of
rities lo investors.
stock
secu-
The New York
Exchange calculates that in
stirred
told
up' trouble
the
with
proportion
for the
entire
period
SovaetUnionbystrongwprdsun-493g-j947 4ncjusjve^js4ess^han
supported by adequate force. - The g
2%.
official
added, Dr. Hovde said, ] ' Ur '.
that "it would make "all the dif- i
It is
ference
the
hi
cerned, if the U. S.
Czech
freedom
with
a
so
far
dec-W
clear
laraition of
willingness to use arms
to defend
it."
,
:
4l;
generally agreed that the
population
growing
a
equipment,
and
give
effect
to
These heeds must be filled at
Guardian Securities Cor¬
poration is engaging in an invest¬
First
ment business from
offices at 160
Broadway, New; York City: Arthur
H/ Baum is a principal of the
firm.
narrow
and -selling
prices.
Wage ;
sharply and have
costs have risen
become
mere
situation
a
inflexible, creating
that is
not
serious
a
handicap to^Tmost^divisions of in-;
du"try as long.% production; em-i
Unsettling Factors
"The
hesitancy of investors' to
supply equity capital; is probably
in
due
small
no
attitude
of
Hastings Represents* Parker
Hast¬
repre¬
sentative for the Parker Corpora¬
•
""
1"
"
venture
;
neth
to
the
Co.,
Financial
Chronicle)
y
ANGELES, CALIF—Ken¬
N.
Simonds
staff
510
of
has
G.
South
of
the
to
The
Dphl has
of
been
added
Brashears
&
Spring V Street;
Los
Angeles
• '
'
-.f *
Financial
been
Chronicle)
added
to
the
Edgerton,
.
-
Hutton & Co. Adds
(Special
to
The
Financial
i
recently in the official in¬
vestigation of the rise in prices
certain steel products, gome
of ;the ;early postwar viewsVcbnc e r n
i
n
relationships
g
between
Ciironici.e).,
profits in b free-enterprise
has not yet gained - full
system
•
recognition.
1
'Tnternatiqnal
fair& nlso have
played an important part in creat¬
ing the present situation.in the
a
supply
ol
Withnf :
our;
must be frankly
constructively
dealt
economy is to expand
and thrive. V
;
of
to
these
•
-
_
Causes of the
relations
appears
numerous
is
the
to
necessarily ja
business
in
heavy
on
in¬
is generally agreed, are the prin¬
cipal source of the savings ? that
normally supply the great bulk of
capitals The almost con¬
fiscatory^ rates on large incomes
venture
relatively little surplus foi
equity securities
and, little incentive to
that such
assume
investment
some domestic securities
owned by foreigners,; with ,a. de¬
pressing effect on the m^t'Xet. If
the European Recovery
tr.e
neces-
should
tive to risk-taking investment ani
which
depress the' market for
equity'securities both by forcing
hasty liquidation and by breaking
4*p large estates.into smaller units
for which, such securities repre¬
a
less
suitable
form
of
in-
helpful,
hibit
industrial
employment-
expansion,
opportunities,'
weaken
the
business
concerns
financial
and
their
time will inevitably bring.
If free
enterprise in America is to ex¬
pand and;/progress in the future
it
has
laws
and
as
done in the past,v our
regulations must be so
as
means
resume
to restore to risk-takers
and
the
incentives
their essential role in
economy." *; !
v-
Paul Reamer Opens:
'risoecia^
..
/
practical
effects.
Kessler
was
•
•
^
chroniclb)
SOUTH
Reamer
to
our
;*'••
•
BEND,,f Paul
is engaging".in a.- securi¬
curities Company, Inc.
in .its
a n a
abil¬
ity to weather /the varying eco¬
nomic-climate that the passage of
II
harmful
limit
position of
ties busi ness -from * of fices. at
staff,
v
inadequate
ANGELES, CALIF—
"y^tfheni.((Tbe double taxation of
Hutton & Co., 623 South Spring
dividends is without theoretical
Street, have added Frank P. Flinti justification and is certainly
their
both
supply of equity capital must in¬
the
incen¬
be
"In the long run, an
saraly. iinvolves/ The situation is revised
aggravated by the estate taxes,"
which further weaken the
Program
psychologically and otherwise.
tax
LOS
to
the
outlook; and
for; A^^icah
dation of
be fects
causes.
dividual incomes, especially those
in the higher brackets, which, it
sent
is;
is enacted .and proves; successful
in achieving its objectives^ its ef¬
Scarcity
burdeni that has been laid
risk
tional
major/;unsettling, factor
the urgent need
to a radically altered situa¬ gx> 0 d s
and J American" dollars
in which the problem of abroad has resulted in the liqui¬
-
With G. Brashears & Co. '
The
to-
of
to be giving
seems
;^"The situation
■
the
on
venture; capital
Salle
V
capital
faced- and
One
to
concerns
keep prjees down in the face bf
rising costs and which, was mani¬
domestic
limitations
attributable
;(Special
gen^
persistent
industrial
the
making his headquarters at
A
dis¬
and
market ioZ venbire;iwpital> The
Unsatisfactory state of' interna¬
tion,
tion,
the
to
measure
disapproval
trust tqward'pr^itsrin
which has given rise to
in all probability, be considerably
higher1 than they; were before the
war.
The inactive capital demand
that has long served to conceal
way
CHICAGO, ILL.—Bryon
ings is acting as Illinois
a
time/ when prices and- costs will,
First Guardian Securities
E. F.
gan Francisco
costs
replace
worn-out.^and obsolete plant and
technological improyements;
(Special
m
to
as
the margin between raw-material
as
change. f
Chicago
Changes in the price struc¬
hayefbeenT^ther
country mow iaces^; period .yof pfices; and
were cohr <i-and
sustained demand for thoroughly discredited by events,
but it seems that the essential
would support j nfw capital to supply the needs
role of
world
Czech-Soviet relations
Edgerton, Wykoff Co. Adds
;v
sort.
fested
ministry
he said,
Wykoff & Co.-,
618 South Spring Street, member^
of
the
Los
Angeles. Stock Ex¬
Y.'/--.;lr*
de¬
especially
venturesome
more
ture have been such
heen Una iced by stock issues. The
'it
staff
Established 1913
strong
a
expansion,
the
policy was "hypocritical, because
summer,
M.
Street, New York 4, N.
to
of
him
last
that American
foreign
LOS ANGELES, CALIF.—Ralph
46 Front
for
that
pressure on
investment * in
NATIONAL QUOTATION
BUREAU, Inc.
porations represent
terrent
rio year since 1935 has as much as
12% of total corporate expenditure for new plant and equipment
leave
For 35 Years
outlook
has been weak¬
concerns,
by tax laws and by high and
inflexible costs. Tax rates on cor¬
increase whatever, ip*
that business concerns
of1 cial banks
failure to take
our
Stock Exchange.
Over-the-Counter Quotation Services
long-term
businers
ened
no
(jicatmg
the part of America
on
eastern
of
«
Hovde
knowledge
members
-
oi
"l'he
induce
an
adequate
risk-taking investment;
.
LOS
Ifutton & Co.,
i nation
reexarr
to
,t
Chronicle)
SAN
FRANCISCO, CALIF. —
William Herlitz has become asso¬
cient
amount of
ployment and prices remain at
to be no serious h
igh levels but that could becojtne
disagreement as to the existence a
bi^detV; in the event of ;a
expansion
in
of a
large shortage of venture
general decline in the volume "of
Czechoslovak*
Bryn J. Hovde
capital. The National Association
activity and; the price level. The
kia
might
of
Manufacturers
estimates
t~e
rising 'break-even' point for in¬
have been stopped had the United
current deficient at $8 billion an
dustry—that is. the level of activ¬
States been prompt with economic
nually and points out that comme
ity- that marks tbe dividing line
assistance,
ERP was .conceived
| cjal j3ank loans rose rapidly Jr between profit and
too late
he stated, adding
loss-rhas bothati^g ancj 1947 while individual
come bn object of
Czechoslovakia, Finland and even
increasing eon-;
| holdings' of corporate securities cern.
Street.
(Special
tinction in favor of income defrom
capital
gains,
this
partial exemption appears insuffi-
ef¬
jrtek-taking,
Herlitz With E. F. Hutton
Chronicle)
.
dis-
a
the
-
their office at 120 South La
(Special
n g
tfcev
GOVERNMENT, TOO, WHO
ARE SO FOND OF
TELLING US HOW TO DO WHAT THEY THEM¬
i
makes
sabre'V- Soviet;
of way,
.Every
we
11
living,
count—and remember this—
if
a
to
without j
even
•
,
;
of us, when
man who is engaged in the investment securities business
in this
country should eject any and every thought of
inferiority from
Ins mind. Ours is a
good business—a vital business—a damned
tough
business where brains and and character
;
g o
law
rived
tre
healthy state of
capital;, market.
needed is a thorough-
is
the
ani
the
/whole Federal tax
"rattling
.
I have written
w
constructive steps in time.- A high
worthwhile
they have perspective!""
What
4
.
Although
possible
more
a
in
(of
hjm ranking
That is the way men
feel about their job. They know it
of
"Bulletin,"
serted
ade-
the nation's economy, ac¬
on
ation
in
e
is
capital
their
of
School weekly,
-
enemy.
venture
af "airs
Dr. Hovde as-;
would
*
-
by such
declaration,":
the
doubtful^
n
to 'The Guaianty Pur¬
vey,' monthly review of business
and
financial
conditions,
pub¬
lished today by Guaranty Trust
Company of -New York;?
"The bill, if enacted, would ac¬
complish little toward the restor-t
"HitT
in
Writing
What Mr. Laird says in his article is that
of
fects
he said,
a
man, that without his efforts
collapse.
1
Kaiser
is
there
now
cording
1914
a
highly skilled one at that. That any manwho is a good salesman has accomplished something worthwhile in
liis life. Besides he is contributing to the welfare of his country in a
sphere of activity that is so important to the well being of his fellowan
ply
seriousness
ler could have
beep stopped
in
1939,;-apd
other
as
official, declared.
even
close
of the sweep ng
changes that have take l place in
the factors determining the sup-
it, Dr. Bryn J. Hovde, Presi¬
UNESCO
time,* -but-::it
whether
clear statement that
a
to
concern
quate recoghitic
dent of the New School and former
our
fields of creative endeavor.
Think
with
ser ve
matter of
•
The sluggishness of this flow has been
observers of the security markets for;'
taking capital into industry.
a
the United States will fight to Prei¬
much that is both stimulating and helpful in it.
underlies the failures of most
x
striking feature of the testimony on the tax-reduction bill
emphasis placed on the need for stimulating the flow of risk-
the
was
some
be saved only by backing
European Recovery Pro-
the
up
If you sell securities you will find
"A
•
What is left of democracy in Eu¬
the various phases of security salesmanship, we heartily agree. If you
rnissed his piece, look back in the March 25 issue (page 7) of your
.salesman in
,
j
With that,
the rest of Mr. Laird's clearly explained position regarding
read his article.
military
our
immediately be impressed on :
Stalin, as it should have been on)
V
Hitler and the Kaiser.; A.;:.;"
AMERICA AND GET DOWN TO
IN
tion of whole Federal tax structure and other sanations discouraging
< vital function of industrial risk-taking.;
endorsement of democracy must £
Essential to Distribute Securities?" by
"FIRE
Shortage of Venture Capital
.Guaranty Trust Co. of New York holds new tax measure Will accom¬
plish little to aid capital market and advocates thorough reexamina¬
^
•*
Last week in the "Chronicle"
v
Liberal Educator
By JOHN DUTTON
Thursday, April 1, 1948
Boulevard;,
formerly- with
Mr.
IIX4
Beahaer
Maxson. Se¬
-
/
-
Volume ,167
Number 4666
& .FINANCIAL
THE COMMERCIAL
With Wilson, McMaster Co.
1
-
ILL.
-CHICAGO,
South La Salle
■
•
.
\
Director, Banking and Investments,
'i(-'
U. S. Savings Bond Division, U. S. Treasury Dept.
Treasury official
enumerates progress
fight against inflation.
]
of
>
Street.
of reduction i
l
against inflation, and
•(SDCciftl
Bond selling campaign
banker^' cooperation in the
urges
as
Chronicle)
The Financial
to
C. iO.
[
part
ner-of-St. Louis.
He
was
previ¬
A. G.
ously with the local office of
f
^a(*e a statement in 1946
which
national
•
I said "The soundness of
debt
our
was a -new
economy
idea then but commonly accepted now.
-This
can
Savings
Bonds
Pro¬
dollar
held
S
a v
Bonds
the
i
n
g s
of
in-'
runaway
:a:
1
ry.;,vpg|
>;■ much V present
flation
danger
with
I
.
—'
us now/^y:
hardly ;
i
v
1
h g V e v/marri.
t h a t
events
borne this put.'
m
I
all-out
for
-nation
Savings
through ^transfers
ownership.
'
•
•
their accomplishments are
fully known to the people.
Those who are familiar with gov¬
most of
>
To
the Holders of St. Louis Southwestern Railway Company
General and Refunding Mortgage 5% Gold Bonds, Series A,
Due
support
of the
+he
crease
I Cam
Bond,:-;.Program.
national
debt
but-are
present;
to, report that you have held obligations.
splendid job of it.yy;; yyy " T"
to ,Pmmrainf nirpnt1 ute
f°r
Secretary of the Treasury
Sny-f' ^urchasinpIn additionnower
to removal
of direct d bt
• .,
J
from the conder recently told a:group of in- Purchasing power from the cona
Railway Company (hereinafter called
Company) hereby invites tenders for the purchase by it of its
<5% Gold Bonds, Series A, 4ue
July 1, 1990 (hereinafter called the Bonds). The.Company is pre¬
pared to expend up to $1,000,000 if Bonds pre offered on favorable
Interest
a
A A
months
at
ago,
-
y
to
government
the
field
it
because
in this
proving - .a
stay
was
stimulus to their own savings de¬
the presentation
partments; that
Twas such that it made people start
thinking about saving, and if they
bond,
didn't have enough te-buy a
they would perhaps come down
and open an account."
!
;
Savings/ Bonds -issued
-
T_
J.^y If
Fav ngs
w
l
sm.ce
^
bad not- been selling
Bonds, y - the; Treasury
thai! caused
plex \ factors
TheSecretary
the
s
recent
October 6,
During
press^adeqiiatelyi&y^
chasing
the
same
to
in
ori
does
•
the Treasury
borrow
from
;
,,
especially to the promotion of our
various--war loan drives, and to
r-
the
continuing
vided
a
'
selfish, more
■
this respect.
A
■
the
I'd
-
bottom
like
what
effective, more un-
of
our
hearts.-
vou
complish.ft''>;
-
-
Reduction in Bank Holdings : of
ft;"; Bebt
idDn Feb. 28,
tional7 debt
Since
||
that, time'it
duced
to
billion—a
billion.
:
1946, the gross na¬
$279.8 h billion.
was-*
has been
approximately
net
re-
•
$254.2
reduction of
$25.6
About $20
billion of this
increase
in
the
(
^ejnand get^
[ance!
-A.
- v;
There
are
There are many
^re^spdadle^ajT; iotal.
affect the impact of
^; r.-
debt
.two major ..Jwlls .be¬
lupon
y of rejectipn pf tenders,
or
as
high
as
omyy/;
$4 billion dollars.. You
see
that these/ two
readilv
But
a
;
was
-madewith
cash
b:lls
together
would
All Bonds delivered pursuant to the acceptance, in
v/hole or in*.
and must
inclusive,
Chemical Bank & Trust Company, Agent, St. Louis
Southwestern Railwav Company, Corporate Trust Department,
1948, to the
New York 15, N. Yy where payment therefor will
165 Broadway,
(be made.
.
///-./Ay,,
;;
Ayy All Bonds in
in whole
or
;
..
•
•;
coupon form delivered pursuant to the acceptance,
of a tender must be accompanied by all appurte-
in part,
maturing on and after July 1, 1948. All coupon
registered as to principal only must be accompanied by duly
executed bond assignments, with signatures guaranteed.
Tenders must be signed by the owner of the Bonds and, if the
I
nant
coupons,
Bonds
V
principal amount of Bonds tendered by any one person (other than
by a bank, trust company, insurance company, or a member of a
national
securities exchange .or
association) does not exceed
$100,000, principal amount, arrangements must be made
bank,
trust
company,
member of
or
one
with
a
of such exchanges or
associations to surrender the Bonds tendered, in case of acceptance,
in whole
ance
in part, of the tender. Bppks, trust
or
companies, insur-
companies, and persons tendering Bonds in excess of
$100,000,
.principal amount, desiring to .do *0, may make arrangements with
a bank, trust company,.or. member of ope of such exchanges or as¬
sociations to surrender the Bonds tendered, in case of acceptance,in whole
or
in part, of the tender.
The bank, trust company, ex¬
association member signipg the tender form in the space
provided therefor, delivering and accepting settlement for Bonds
change
or
..^pursuant to and in accordance with an acceptance, in
part, .of a tender of another party pr person, >will be
whole or in
paid by the
.Company $250 per $1,00.0, principal pmount, thereof.United States Stamp Taxes are not payable on the sale, as
cancelled.
.the right, in its absolute discretion, to
accept or reject any or all tenders of any. pf said Bonds, or to accept
anv portion of the Bonds covered by any tender and to reject the
Bonds purchased are to be
The "Company reserves
.
-..V,,
successful sales program
about of Savings Bonds to, individuals
$9
billion purchasing power -to can have an eyen more direct ef¬
fect in reducing dangerous infla¬
I*An address by Mr. Townsend the market if they pass. *
The nation is indeed - fortunate tionary
pressure.
Dollars thus
at the annual meeting of The Cen¬
to ' have
tral States. Conference, Chicago,
Secretary Snyder and taken from the spending stream
A
(Continued on page 27)
Secretary Wiggins iri control pf
111., March 23, 1948.
y-A -
I'| reduction,
tenders
representatives, at the addresses appearing in
'
y
1
tenders.
part, of a tender must be delivered in negotiable form
be so .delivered during the period April 7 to April 21,
/
our
■'
their authorized
their respective
.
will be mailed not-later than twelve o'clock
Eastern Standard Time, on April 7, 1948, to makers of
noon,
cording to the naoers might .run could
ran
Proposed Contract No. NY 1 GO," and addressed to Mr. Paul
opened by Mr. Paul J. Longua, or in
Millard or, Mr. C. E. Scott, at said office,
immediately after twelve o'clock nopn, Eastern Standard Time, on
April 5, 1948. Makers of tenders or persons representing them may
„be present and examine each tender jif they so desire.
Notices of acceptance of tenders, in whole or in part, or notices
greatly expanded credit, which in
our present inflationary situation
be dangerous to rthe econ-
Marshall Plan bill; .the other-.is
the tax reduction bilk which,.ac¬
in; this transaction, and, if a firm,
and addresses of each member
names
1948. Tenders received will be
factors that
the public
that emphasize the bution is one
necessity of th's more .than.eyer,- ihgs of United States bonds in the
One is the $5 JbTlion ^..million- banking system may, under cerdollar European-cooperation-,;. or .tain conditions, provide a base for
fore Congress
pr agent
association, the
his absence by Mr. F. H.
/
nationa"
economyDistri¬
of them. Large hold-
or
•
.
Now
iust a little of
have helped us to ac-
over-all
standing does not further outrun Program constitutes a major at¬
production. We must see that the tempt to spread the national deb ;
gap js narrowed until supply and
without increasing the pver-al"
patriotic service in
We thank you from
to report
purchasing
selling officer
or
Company, Room 2105, J65 Broadvyay, New York 6, N. Y., at or
before twelve o'clock noon, Eastern Standard Time, on April 5,
power^has outrun production; and
all along the
•*
^ Savings Bonds and Debt
Tpe.. Today our major economic
problem at home is to make sure ;}'■*& |;yy|:; Management
that the amount of money putSpecifically, this Savings Bond
in this nation has pro¬
more
our, .economy,.
\
^
under
prices have come up
sale 'of- Savings
Bonds since the end of hostilities.
No group
In
amended Octpber 4, 1920, in its Docket Ex
J. Longua, Secretary, St. Louis> Southwestern Railway Company,
Room 2105, 165 Broadway, New York 6, N. Y.
All tenders must be received at the office of the Secretary of the
the
of this increase is due to the buy¬ American Ipeople?/ Wby; ah ex¬
behalf, and for the welfare
ing and holding of Fav'ngs Bopds panded, Savings Bond sales drive?
of the people of America; "
' *l
by indiv;duals, for there has been, '•.First,.it must be stated empha¬
would stress particularly the
tically'. that the Savings Bone
contribution :of the banks to the the Victory Jjogh.vV-'
T • :.;vf Program does not contemplate an
Treasury's financing
programs,
as
|
X,hp manager, purchasing or selling officer of agent in this
; /
V
V"
'V'-'yA
Tenders must be enclosed with accompanying papers ip a plain
envelope, securely sealed, bearing no indication of the name of the
maker of the tender or the amount of the tender and marked "Bid
.
our
-
the regulations
transaction.
.
the
about $6,485> for each family
ithe United States;.
,
22.8% of the debt to | Why, then,
$65.3 billion or 25:7%,. Nearly all still -seek
to
billion
v
and of
indebtedness which now amounts
period' indi¬
1919,
partnership,
„
vidual i ownershijp-ofgovcrnment
securities
increased from $63.5
,,,ciation, and that of the Treasury,
Tor the services bankers have ren¬
dered, and fcr the services that
banker continue to nerform -in
Cotton Belt Building, St. Louis, Missouri,
and
conformity with regulations .of the Interstate Commerce Com¬
mission, each tender must state the name and address of the maker
of the tender (owner of Bonds), ai?d, if a corporation, the names
and addresses of its officers, directors, general manager and pur¬
i The
impossible for" me to ex¬
It is
or
In
(
221 months.
V., marked ^Attention Mr. Paul J. Longua,
N.
Parte No. 54.
Treasury, with the complete sup¬
port of the President and his other
able to retire
economic advisors, to institute this
bank-held debt new
campaign are, perhaps, less
and the existing inflationary po¬
readilyunderstood.
tential wo.uld have -been a£>out
$.110 billion greater ihap it Js.now.
Why Push Savings Bond Sales
Tliis is the ;/IuUfncie5a§ufe iof, the
anti-inflationaryf effect, .of- the .: The government now is .operat¬
favlrvr Bond ;Program in-.the past ing with a surplus of revenues
critical
'
prescribed by the interstate Commerce Commission in its order of
$15 billion jess of
s-ud:
/further
,
i
This Invitation for Tenders is made pursuant to
have-been
would
6,
Comptroller."
.
' '
* J
over expenditures.
The continued
banjklng system held $1.16,7. high costs of the aftermath of war
billion dollars • ■ or 41J)% .^of ;thet and of our national security anc
years
the Treasury Department
Federal debt in .February 1946, foreign aid programs are being
has called upon the financial in¬
when' the debt .reached it's aJMime; met.- The unprecedented national
stitutions of the United States for
hi^h.
By the e ni| of . December income has provided tax receipts
support and assistance upon many 1
°47 this Jiad been .reduced ,vtp .sufficient to permit continued re¬
occasions. and 4n manv different
$91.,1 billion or 35.8%..The amount duction of the debt/.Sound fisca"
capacities.". And he added that
nnw held by commercial banks is
policy/dictates that we must, in
they had vnever failed to - come $68 6
billion, or 26.9%, against a, these/prosperous tim es, endeavor
through. - y*"'- '
| ,y|;w
high of $93.8 billion or 33.7%.
to reduce.further that. nationa11
"
"Throughout
-
all
meeting,
a
they wanted
York
Secretary,"
•
banks assured us that
.
marked "Attention Mr. F. H. Millard, Vice President
v
The '• American
lihas met with the practically uni- Tal. of from $6 to $7 for .each dolr
people
were
.versal support of bankings Prior/J,ar,So r^-red from the banking quick to grasp the .necessity for
/yto the end of the war, I felt that 'System. This means that wf have. .lending their funds to their gov¬
w thdrawn
that much purchasing
ernment during the years when
banking would be in here yery
power from the market and six
we were battling ruthless enemies
shortly after the; end of ..the war
to seven times that much or .about
for our existence in a shooting
y and say:- 'Now, get out of this $20
biJlion from the credit poten¬
war
private -field .-.that belongs to the
tial. The Savings Bond sales since
: The necessity for
an expanded
banking industry and- is not part the
Victory Loan have /covered drive to sell
Savings Bonds now
of what the government ought to
.The-.redemption and maturities gi is
harply less urgent, but the com¬
be doipg/C Strangely enough, a
few
v.'
for Tender may be obtained by addressing
its offices, Room 2105, 165 Broadway, New
request. Forms
the Company at
»
§ dustrialists, meeting in Washing- spmer market, r$bis ..operation ^.re- I; Savings Bonds-in War and lu
ton: "The Savings Bond Program nmves a. credit expansion poten- :•:{?'fIVIvf:'-:fv Peace 'ff/1
..
-
.
accepted for purchase will be paid to April 21,
y All tenders must be submitted in triplicate on the Form
for Tender which will be supplied by the Company upon
V
min-
X
Bonds
on
1948, but not thereafter.
interest on the national
-
-
$9,000
us
•'
terms.
;
is. military, ..past and
It costs
„
General and Refunding Mortgage
business in the world—and nearly
the^nkZ-alLtbat post
f0r
;
the
.........
_
July 1, 1990:
St. Louis Southwestern
and maturities of other Sav-
ons
Railway Company
Invitation for Tenders
.
not
happy
done
,
St. Louis Southwestern
>
-"
/;•<£ ;:y r
appeaiea to
vo the
ine bankers
oanKers 01
ine
'appealed
of ; thie
i
more
management. I am sure everyone
will agree that they have followed
a
very wise course. A • ;
• vn
s Bonds and
left a surplus Of
To give you an idea of the mag¬
$ 3 billion.
It is obvious that This
nitude of the debt problem facing
$ 3 billion represented merely a the
Treasury, among other things
shift of ownership from banking
the Treasury has to yaise $72,000
n-rtitutions to nun-banking inves¬
night and day,
tors.
I would like to emphasize every, ; minute,
that the net proceeds *from the -Sundays and holidays, to run the
U.s S.
the; biggest
Government,
s,,e Qf Savinps Bonds dn n0(
t
f need rHxeipind
>
even
ury.-with funds- to meet redemp-
,v e
you
been
Since I appeared - before
this
ernment finances recognize that
distinguished group we have sold
there were several courses which
in excess of $15.billion in Savings;
Bonds.
This provided the Treas¬ could have been taken in -debt
lessens
threat
has
debt
than $26 billion
of
our
The -reduction in the bank-
Loan.
by individuals.
in
monetary problems at this
critical hour. -We owe them a debt
of gratitude.
I am afraid that
from the over-subscribed Victory
Every
placed
gram.
Chronicle)
\
continuation
a
Financial
MICH.— Lester L.
Lodge has become affiliated with
Charles E. Bailey & Co., Penob¬
scot Building, members of the De¬
troit Stoqk Exchange.
upon
pnnfini»qtia«
of
to The
ownership of the public
only be insured through the
depends .much
by individuals and other non-bank investors.
Edwards & Sons.
Washington
DETROIT,
associated with Reinholdt & Gard¬
move.
'
Charles E. Bailey Co. Adds
(Special
ILL.-^Rodraan
Matheny, Jr., has become
SPRINGFIELD,
ban khold Jigs of U. S. dsbt, and its contribution in
Stresses importance of con inuation of Savings
program
J
West
131
Inc.,
Avenue.
Co.,
Joins Reinholdt & Gardner
.
'
Chronicle)
BEND, IND.—Charles
W. Magner has been addled to the
staff of Albert MeGann Securities
134
Co.,
Financial
to The
SOUTH
By MORRIS M. TOWNSEND*
■'
.
&
McMaster
Wilson,
(Special
J.
Calvin
—
associated with
Webb has become
With Albert MeGann Co.
.
Chronicle)
to The Financial
(Special
n
(1439)
CHRONICLE
balance.
add
ST. LOUIS
.
y
*
.•
New York,
c
•
■FT
4-V
.
..
.
N. Y., March 22, ,1948.
.
•
SOUTHWESTERN RAILWAY COMPANY,
•
|
'paul J. Longua, Secretary.
'
>
,
24
(1440)
THE
COMMERCIAL &
World Bank Grants $16 Million Loan to Chile
McCloy's visit to South
America, similar to the one he
made last fall to several
capitals
Represents
John
first World Bank loan to South
McCloy, President of Bank, to tour
J.
of
South America.
The
International
Bank
Reconstruction
and
Development
announced on March 25 that the Board of
Executive
proved two loans to Chile
totaling $16 million.
The first is
-
in
Chile
loan of $13.5 million for
a
to
n
t
s
r
mentality
-
f
Chilean
the
o
ment
of
m
Office
the
of
and
d
e
:
Electrii d a d, S. A.
(Endesa),-
John J. McCloy
^
a
The
zation.
$2.5
v
million
second
is
to
Fomento
the
loan
a
of
Expressing
or¬
ganization for the purchase
agricultural machinery. -
report of
of
are
eral
velopment field and
with
of
one
the
Vice-
of
the
Victor
gua.
Brazil
off the Bank's
Industrial
represents
Chile, Philippine Republic,
the
generally
The"
of
20
years;
amortization pay¬
ments will begin in the sixth
year
are
loan
calculated
to
retire
the
by maturity.
Tni3 loan car¬
interest rate of 3V2%". The
million loan to Fomento is
an
$2.5
term
a
of
six
and
one-half
years; amortization payments will
begin
in the
calculated
third
to
year
retire
maturity. This loan
the
and
are
loan
carries
an
by
in¬
terest rate of 2%%. In
accordance
with
its
Articles
of
Agreement,
the Bank will also
charge a
mission of 1%
annually on
pro
d
u c
t i
maining in
purchases of critical materials
foreign countries, where a
longer range is indicated by upset
foreign conditions. Purchase or¬
from
decline
i
more
s
der
pro¬
in
nounced. Lux¬
items
prominent
ury
in
of orders
are
ly
large
order
book),
34%
show
decrease,
compared to 14%
creasing. This is the result of
con-
more
j;o
the
cautious
policies.
months, at least,
disruptive
conditions
could be
speedily eliminated; For
the
immediate future,
extreme
ume
if
ex¬
change for the purchase of agri¬
cultural machinery in order
to in¬
the
productivity of Chilean
agriculture.
/
our
accordance with Bank pol<ky, the loan agreements provide
the
be
funds
used
to
be
for
are
put.
loan
two
and
Roberto
>
'
;
contracts
<
were
Vergara,
representative
on
behalf
again,
of
of
the
de
of
la
South
leave for
a
are
with a tendency to
competition increases.
as
are
coming
into
Escalator
reported dropping off
which is a general
are
the competitive
gauge
climate.
;
will
new pressure is
being
versely affected by the coal strike.
1
Reduction in steel
delivery allot¬
ments will create
unbalanced
April 1. He will be accom¬ ventories of
other
materials,
panied by Luis Machado of
1
with
in¬
pit
Cuba,
the
present
short?
changes
'
■
.
were:
■
-
ace¬
conduit;
too
particular,
even
commit¬
Foreign Sales Continue High
:•
:
••
"'rV'
In
I
survey notes, however, that
number of manufacturers re¬
"a
port considerable shrinkage in ex¬
port shipments." This is generally
attributed to "shortage of dollar
types of
some
caused them to focus their
efforts upon new territories
most
February.
caused
time
These
the
New
do
recent"
layoffs
by the coal strike. Over¬
and
extra
shifts
are
out of the picture. The
cient
employees
ductivity.
hard
hit
and
not
its
fading
more
being
accelerating
are
effi¬
are
re¬
pro¬
Northern California is
by the
power
limitations
production.'
on
shortage,
industrial
v'T;:-Vf1 T T
(
Canada
■
..
Many
up
lower.
better
States.
grade.
Backlogs
are
holding
than
the
United
Prices
in
are
Inventories
on
the
down¬
continued
be reduced.
to
Employment is down.
Buying policy duplicates that of
the States.
•
•
;
•
executives
as
result
a
The
is
from
away
?
of
fear; that
export
trade may suffer a temporary set¬
A few
believe that this
rary.
j
;
^^
South America
Back
as
Door
Exports to Europe
Many executives
are
for
.
wondering
whether the licensing regulations
It
is
contended
cover
that
present regulations
an
exports
par¬
under
the
export sale
could be made to South America
where
licenses
no
required
positive Est
and that the products might then
be channeled to Europe.
These
executives speculated
as
to the
for items
not
such
of
back
are
the
on
effectiveness
if
exist.
s^les
present controls
doors
to
Europe
;:
few executives fear that the
A
extension of government licensing
might lead to a greater degree of
state
tradmg and that the private
channels
commercial
be
may
gradually blocked out of the
Licensing Regulations
Opposed*
ture.
bus'ness
to
the
executives
new
are
'
>
because
the
of
are
numerous
utives
be
to
expected
solve
will be aggravated' and
of
anv
that "the
only hope lies in giving the enter¬
prise svstem more freedom by en¬
couraging the free exchange of
goods both here
and
controls
abroad."
Price Pr«vi«*ions Severely
Criticized v'(
s
'
of
.
This
principle
against the use of
nrice criteria in granting licenses.
was
the cost of
a
an
minimum.
of the
sums
will
money
be
•
spent under ERP and
that
"final control of the use of these
funds
must
in this country."
rest
Curb
Quarter
Club
Elects
At
the
Century
Officers
annual
meeting of the
Exchange em¬
ployees' Quarter Century Club,
Louis S. Burgers, a supervisor of
personnel on the exchange trading
New
York
Curb
floor,
was elected President suc¬
ceeding Henry H. Badenberger.
Mr. Burgers, who joined the Curb
Exchange staff on June 27, 1921,
.
the severest, criticism
directed
that
They say* that large
American taxoayers'
was
Some
was
feel
ERP must be held to
govern¬
manufac^
The minority of business exec¬
favorin g * more
strin gent
:
regulations
a
Vice-President
during the past
of
the
club-
year.
Martin J. Keena, director of the
Curb
established by
department
of
Securities,
was elected Vice-President of the
Section 3b of Public Law
395, but
organization. Christopher Hengea majority of executives
regard it
veld, Jr., will serve as Secretary
as
"unworkable and, invpractical.
and
is
easily
subiect
contended
that
to
abuse."
OIT
It
crimination.
For
many
products,
manufacturers believe that few
outside of experts in the indus'try
qualified to make
ancj Treasurer for another year.
personnel
have been given excessive nowers
which might lead to unfair dis¬
are
go
a
today's serious (trade problems.
Instead, thev believe the problems
In
general business, production
has leveled off with the trend to
of
Minority Favor Controls
1
time
reports
more
markets
sterling countries.
Employment is down, the great¬
(34%) reporting low¬
cover
of
in
frequently reported shift in
foreign
est number
than
and.
"increased
foreign
competition." These factors, some
manufacturers
point
out,
have
can
'
pay
rolls J than at any
since
the war—15%
more
restrictions
turers who, in the light of
previ¬
ous
experience, cannot see how
additional ; government ^ controls
*
er
to
ca«es,
;i There
au¬
[-J"- Employment
import
governments."
ment's failure "to consult practi¬
cal men who have
spent years in
export trade."
;
tomobiles; brass; bronze ingots;
containers; ■;cotton twine; :small
motors; fuel oil; pine oil; paint;
polystrene; thermoplastics; valves.
foreseen
regulations, the majority
new
to non-European
countries,
ticularly South America.
realistic
supply:, steel;
alu¬
minum; building (materials; china;
lead; zinc; nail^j methanol (good
grades); some lumber; tin.
ficulties
the
f.
matter of principle.
Several
manufacturers
found
them
un¬
*•'•*.»<irt:
delays and dif¬
pating in the survey "have con¬
tinued at high levels, with an up¬
ward trend
often
in evidence."
opposed
tight
Trade
on
Will be extended to
as
alcohol;
Effect
Because of the
manufacturing exporters partici¬
The
This
importance to producers of heavy
equipment.
.V;
setback may be more than tempo¬
new
Foreign sales of the
majoritv of
products.
many
time factor is held as of
particular
3
•
more
back:
forerunner of still
broader regulations, -v
' • yV-,;T
,
planning
frequent criticism of
regulations is that the
enough for
a
.
production
-
new
many
whether the
to
as
are
and
90-day license period is not long
90-day li¬
by a few producers who fear
josses ' "may be more than
temporary," ( while some' others
ex¬
Another
the
is
that
that
costly delays,
tape," and addi¬
also expected to become
difficult.
regarded as
giving undue
OIT will be bogged
paper work and that
is
for
licensing problems. Scheduling of
orders
are
the
frequently re¬
short, and generally
result
net
look
"unjustified red
are
as
Consequently,
down with
die
ex¬
ercised to continue the
downward
trend. Steel
production, which is
the most serious
bottleneck, is ad¬
America
tour of South America
but
-
-
price
products;
tained and
Industry is measuring inven¬
tories with extreme
caution. They
are somewhat
lower than Febru¬
bor¬
Development,
;
Cor-
Pro¬
the
"
"
-
in
Easier to get:
Inventories
the announcement of
.h* loan to
Chile, it was stated that
John J.
McCloy, President of the
International Bank
for
Recon¬
and
by
New
Following
struction
,
(
materialr prices
Supplies
clauses
ary,
Tour
advised
employment1 situation.
rowers.
To
'
Development;
poracion de Fomento
•
vol¬
productivity and produc¬
efficiency are reported bet¬
ter.
on March
25, 1948 by R. L.
Garner. Vice
President, on behalf
of the International
Bank for Re¬
construction
and
duccion
good
closer balance with
demand. Some
of the fears of
cost increases on
another wave of
wage demands
have been lessened
by the easier
signed
by
generally
reports.
lower,
tion
that representatives of the
Bank
have full
opportunity to
check the end
use to which all
as
few
glycerin; hides; leather; jute; lead
cable; gum rosin; rubber; linseed
oil; menthol; mercury; sugar; tal¬
low; some textiles; yarns.
:
Worker
purposes
shall
The
is
Industrial
disbursed
the
specified in the agreements
purchases
in
almost static,
showing
period
foreign
burlap; butyl acetate; cocoa but¬
ter; cotton goods; some foods;
several
Commodity Prices
that the Bank shall
be furnished
With full information
will
remain
price
On the down side:
ethyl
w
In
that
would
for
these
caution
crease
cense
exchange,
i
ink; saccharin; small tools; twine.
are
The purpose of the
$2.5 million
loan is to
provide
'
.
blocks; dolomite; felts; formalde¬
hyde; glue; platinum; rope; news
sound;
sales
get.
coal-tar
Purchas¬
demand exceeds
supply in many
products,
and
production
and
foreign
In
garded
tone; ; ahintinum^
of
ing agents' over-all opinions
that, basically, business is
production
i
Commodity Changes
Increased
con¬
development
current
important
easier to
disturbing elements—
plans—have
tributed
ex¬
v
basis that
a
stand out, the "downs" overbal¬
ancing the "ups" by a slight mar¬
gin. Many more items are reported
a
in¬
:inuing close buying commitment
schedules and
inventory reduc¬
tion policies.
new
maintain
No
previous
the
backlogs, and to
Specific
and,
while still
substantial
(52% report
maintaining
being reduced
drop-off in
are
schedules. vf >
disappearing rapid¬
development of electrical
power and water facilities and re¬
sources in Chile.
for the
will
.,T :'
j
slowing of demand. Backlogs
the
quantities
proportion to
order
Robert C. Swanton
are
war
talk and
the coal strikeadded to the
uncertainties of the
aid to Europe
required
are
to
Two
change for the purchase and im¬
portation into Chile of equipment
supplies which
clination
both
foreign
ruies."
controls
are
high gear, al¬
though the in¬
,
.
tional credit, shipping and
import
The
porters
fear that the
commitments. 95% report this pol¬
icy, with accent on the 60-day
limitation.
The; few exceptions
o n
re-
com¬
loans to be set aside in the
Bank's
T
The purpose of the
$13.5 mil¬
lion loan is to provide
special reserve fund.
some
be
it is feared that inordinate
delays
in the issuance of licenses are
predominant
purchasing
continues within 90-day
policy
trends—
:
The
$13.5
million
loan
to
Fomento and Endesa is for a term
new
lieve that
Trade personnel.; The
;
to
as
tion may
sneculate
Buying Policy
expressed
whether the OIT will be able to
obtain properly qualified person¬
authority to Office of International
able.
is
nel.
price provisions
inpractical and
;
—«
skepticism
are
for
clearly defines
ductive
pro¬
&
Conference
controls and question the heed for
additional restrictions at this time.
Even among the minority who be¬
new
policy. Selective examina¬
tion of inventory items is advis-;
ary, and more
the
capital for
Board.
the
degree of regula¬
necessary there are
many who are skeptical as to "the
efficiency and effectiveness of the
of its members, the March
Purchasing < Agents Business
of
to
-
Board,
most
exporters
strongly opposed to these
ment
re¬
at
assist in the development of Terri¬
tories of members by
facilitating
the investment of
purposes, including the
encouragement of development of
productive facilities and resources
in less
developed countries.
opinion
Association
con¬
completed by the National
Conference
According
end of Febru¬
objectives
policies—namely, to
composite
are y
licensing
inevitable.
the
National
exporters
by the Department of Commerce,
according to the latest survey
of business practices which
has just been
represents
Moller
most
says
skeptical of their efficiency.
are
Manufacturers find the immediate outlook for
foreign sales fur¬
ther clouded by the recent
introduction of a new set of
Executive
as>
Bank
Board
rulings and
trols
Bolivia, Costa Rica,' Guatemala,
Paraguay and Panama.
-
business
1
ported
in accord
are
main
the
conditions
the Bank has approved in the de¬
.
Machado
Conference
new
of
to be guaranteed
by the Government of Chile.
The loans are the first which
i
Bogota,
Venezuela.
and
Industrial
strongly opposed to
Survey Committee, whose Chairman is Robert C. Swanton, Director
export trading will suffer. More
Purchases of Winchester
Repeating Arms Corp., confirms the, serious
consequences are looked
change in gen-
-
Both loans
York
National
'
Business Survey Committee of National Association of
Purchasing
Agents, headed by Robert C. Swanton, sees new disturbing elements in war talk and coal strike.;
Says worker productivity and
^
efficiency are better.
;
subsidiary of the Fomento organi¬
end
:
More Pronounced
p r e s a
C
and
;
High Production, but Willi Declines
devel¬
Nacional
for
those
Mexico,
Cuba,
Peru,
Uruguay,
Ecuador, Dominican Republic, El
Salvador, Honduras and Nicara¬
Victor Moller of Chile,
Executive Director, will join the
group in Santiago.
eco¬
opment,
ries
countries.
of
Director
Chester A.
Counsel, Drew
created
nomic
and
lems
Brazil
Director,
the
the
promote
.
Chilean
E
purpose
with
on April 2; from
there
tentatively
plan
to
visit
Ecuador Peru, Chile, Uruguay,
President.
Governto
himself
development prob¬
Luis
arte
Thursday, April 1, 1948
Reports "Farther Clouding" by
New Export Controls
European
for the
they
McLain, General
Dudley, Director of Public Rela¬
tions, and Enrique Lopez-Herr-
an
u
acquainting
:
Colombia
Directors ap¬
hydro-electric development
Executive
de Fomento de
la Produccion
(Fomento),
be
economic and
<s>
Gorporaclon
i
will
The group will arrive in
for
CHRONICLE
Mr.
Bulk of proceeds to be
appKed to government sponsored hydro¬
electric projects.
American nation.
FINANCIAL
proper
price
comparisons.
Bonds
.Holders
Nov.
Efficient Administration of
Regulations Doubted
The
consensus of
of
these
1,
1960
$16,000
bonds
through the
ness-like
fiscal agent.
Considerable
Free
State
Redemption
Irish
Free
-
:
State:
are
being notified
principal amount of"
have
been
lot for redemption on
manufacturers
opposing the new controls is that
they "will no;t and cannot be ad¬
ministered in a simple and busi¬
fashion."
Irish
(Saorstat Eireann) external loan
sinking fund 5% gold bonds due
that
>•
of
Drawn for
drawn
by
May 1, 1943
sinking fund at
par.
The bonds will be redeemed at the
head office of The National
Bank
of
New
York,
City
American
Volume 167
Number 4686
-
THE COMMERCIAL
&
CHRONICLE
(i44i)'«;
Cherner
is;
President, and
George F. Hoheim is Executive
Vice-President. Reference to the
organization of the institution ap¬
An
CAPITALIZATIONS
At
the
the
regular meeting of the
of
Directors
of
The
The
Na¬
of
tional City Safe Deposit Company
of New York held on March
25,
Side
North
of New
March 24.
President Fred
Randolph Burgess was ap¬
pointed Chairman of the Execu¬
The
National
City
York, was elected
a
Director of the Safe Deposit
company
to
succeed
the
late
the
Rentschler. Mr.
Board
the
of
'•
tive
and
DeWitt
elected
A.
v a
by the death
■ii-jvY'i
of
Trust
March
on
25 the appointment of Herbert H.
Vice-President
as
Credit
bank;
;,
Lieut.-Commander
in
during World War II,
Colonial
his
Trust
military
Navy
he
N.
is
?162,500.
15
Division
National
the
.amount
Office
the
of
the Currency the
$65,-
100
E. Chester
The
Public.
National
Trust Company
that
nounces
to $130,000 by a stock divilend, and from $130,000 to $162,-
Gersten, President of
Bank
of New York,
Albert J.
and
an¬
300
Kuenzler,
nounced the
>:"At
the
March
29
ing of the Port
Bank
of
Port
of
'
N.
Y.
\
••
the
At
Edward
elected
P.
Ped-f
ident of the
viously,
with
he
Edward P. Pedowe
Cashier.
-
the
the
New
a
senior
York State
iof v Banking. ' Pre¬
had been associated
York
National
New York. He is
lic
a
City
New
York
Bank
of
certified pub¬
accountant, and
the
a
State
member of
Society
of
CPA's and of the American Insti¬
tute of Accountants.
Mr.
March
on
formerly
election
Mr.
25.
Assistant
'»/*/;//■>
L/L',/
of James
Committee
of
the
of March
V/v
of
the
C.
Fen-
Baltimore
11,. by, J-
who is
Board
of
i-i National; Bank,
in the Clearing
House
Ai - H. S. Post who is
Baltimore
succeeds
Chairman
of
Mercantile
signed.
the
Board
of
the
Trust
Company; re¬
Baltimore
"Sun"
The
■-=-■>'"-"J'-iIC'-'AV"^:"*■
says:
"Mr;
Post
resigned the Chair¬
manship of the Committee at the
expiration
has
of
been
his
1947
associated
Clearing House
term.
He
with
the
has
served
as
Chairman
that Committee since 1931.
"Heyward
E.; Boyce,
'
of
^
;
Chairman
of the Board and President of the
Hauxwell & Smith, Inc., has been
Maryland Trust Company is Pres¬
a
Trustee of the 33-year old mu¬
long been active in the civic and
ident
of
James
D.
the First
more
is
the
Clearing
House.
Harrison, President of
National Bank
its
and
until
recently
served
as
President of the Board of Educa¬
tion.
of
Balti¬
Vice-President.
if
community affairs of Port Chester,
if
\
if
•"With a capital of $250,000 <and
surplus of $50,000, the Shirlington
Trust Company of Arlington, Va.
began business
on
are
more
not
timid
on
•
t
kv\ r
'•
v
••*>. •
•
•
.
:
:•
the constructive side of the market.
is looked for but a firm to better
,
v,••
•/.■•
--i -.'V!:•'&<
•
No runaway or wild splurge
price level is believed to be iflr
the making, with the restricted obligations
apparently the more fa¬
50-cent-a-
a
,v.
•
.
The feeling'seems to be growing in bond circles that the trend
prices of the intermediate and long Treasuries is upward for the
time being because investors, traders and dealers have returned tcr
just
outstanding
vored issues at this time.
Evidently
,
...
:
.
.
dividend
I-:.
■
turities into the
,\'
L.
missioner
r
Banks
in
market
it
is
the
he
will
Wis¬
authorities
"pegged
of-town bank and non-bank investors.
announced
.
.
...
.'''
L"
The
big city banks have been stepping out into the more distant
maturities with important purchases reported in the
eligible taxable
Milwaukee
It is added
2y4s due 1956/59 and the 2V2s due Sept. 15, 1967/72.
This is the
time for a considerable period that what appear to have been
rather sizable positions have been taken by the large city institutions
in the longer taxable bonds. >
Previously commitments in the
succeed
the
Citizens
State
Sheboygan, where
Bank
of
.
J. W.
the intermediate-term
Board.*
1952/54.
*:;
■
if
if
..
■' Vi
/
..
exempts. \
?
Tennessee
H. ; Bryce,
Memphis,
businessman, has been
named
Class
a
C
Director
Federal
Louis
of
Bank
these
St.
terrtV
a
and
March 9. Joseph
:
ters
Dallas, Texas. He
one
of the original promo¬
of the company 25 years ago
and
has served
its
Bank
Into
both
the
eligible
move
into the ineligibles has
intermediate
the
and
distant maturities.
more
been rather substantial
in for buying with the
due
1959/62
1
2x/ts due June and Dec. 15, 1967/72, evidently the current
favorites because of the small amount of premium involved.
...
organization.
purposes and tax
it<jLs
The
a
some
new
is
born in
no
had
reductions,; but the feeling in most quarters is that*
bit early to indicate when the Treasury
that type of
Louis Reserve
St.
,
it might be handled in (line with larger expenditures for defense-
way
Vice-President
as
,
Considerable discussion goes on aoout deficit financing and the
Minden, La. He
graduated from Culver and
University of Alabama/ In
1917 he joined the first Officers'
Training School at Fort McPherwas
prominent in the govern -
very
There has been switching out of the shorts by
.
PREMATURE
head office is in
since
obligations particularly in the 2s due Dec. 15,
ending Dec. 31,
Memphis
operations of the
Dixie Wax Paper Company whose
director of the
.
.
The
and the
of
was
principally to the partiallyreported to have been made in
also
were
.
with all issues coming
Mr. Bryce is Vice-President
General Manager in charge
1950.
.
institutions
.
Reserve System.
Douglas W. Brooks,
Memphis, wjiose term ex¬
pired last December: Thle appoint¬
ment is for
Purchases
.
.
confined
were
longer ineligibles with preference for the
Federal
succeeds
.
tap issues.
and
of
.
maturities
,,' Savings banks continue to be
by the Board of Governors
the
He
Reserve
.
ment market adding to their positions in both the eligibles and
,
Deputy Chairman of the Board of
the
distant
more
■
*
.
first
Hansen,
President of Citizens is moving
up to the post of Chairman of the
-
'
;:7:/"/i-Kvv
LONGER BONDS IN FAVOR
Dayton F.
Pauls, who will become President
of
ma¬
result the
a,
; v
.
become Vice-President di Cudahy
State Bank at Cudahy, Wis., ef¬
April 5
according
to
As
.
present and former holders of long governments.
This better
feeling among buyers of Treasury obligations has brought about a
good demand for most of the longer maturities, especially from out-
consin Banking Department, will
fective
.
.
as
Dr. Marcus Nadler and Mr. Beardsley Rumt
prices" of long Treasuries could and would no doubt
be maintained, appears to have
helped to instill confidence among
that
•:,
the
.
well with prices holding well
very
by Mr. Thomas B. McCabe (nominee for Federal
Reserve Board Chairman), before the Senate
Banking Committee,
that continued support of long-term governments at
par seems to be
the right pattern, along with the opinions of such
prominent money-
Stock, Deputy Com¬
of
turn about in the operation
The statement
.
■'
Walter
fully
have too largely increased
or
a
distant obligations.
more
■CONFIDENCE
good earnings made
possible." < !•<
1125.
too
either
.
action
"'
have
taking place with funds going out of the near-term
now
top bonds have been" acting
above support levels. ,
Feb. 12 page 731 and March
11, page
•
investors
,
is
The increase in the bank's cap¬
ital
was
referred in these
col¬
umns
non-hank
many
depicted their holdings of "longs"
their positions in "shorts" so that
30,000
operation. /
'money market followers
further
more
be faced with
may
V The only tangible near-term results that'
.
expect
from the changing conditions;
hardening of interest rates, until the authorities have
time to study general
economic conditions and the probable
was
the
effects upon
PARTIAL EXEMPTS HIGHER
'
The
Georgia,^?and served during
son,
World
cer
it of enlarged government spending.
War I>as
with
the
artillery offi¬
an
of certain of thc-se securities.
Announcement to the effect that
C.
Shefor
Vice-President
tion
Bank
would ^become
of the Fulton Na¬
Erie
Atlanta
.
.
t
v
to bring about
In
,
as
of
from which
Research
;
.
is
Council
I
(
- l-
■
r*i
.
pf
■
>
-
of
the
on page
40)
of
Mr.
j'
Thomas
B.
v-
.
.
♦
■
McCabe
before
the
Senate
markets although there seemingly is less confidence now
"Street" that important
;
new
bank regulations
for from the Congress in the not distant future.
.
.
Eccles idea of "Special Reserves" supposedly would
considered
in
any
new
banking
in the
not be asked
may
.
While the
not
even
be
limitations, larger reserve re¬
■
American Bankers Association,
(Continued
to cover positions, dealers
bidding for these securities which has helped
Banking Committee appears to have been reassuring to the money
March
Chairman
attempt to supply this de¬
as
higher prices for the partially-exempt Treasuries.
Testimony
we quote
Shelor, among his
activities,
an
well
LARGER RESERVES? '
made by Presi¬
"Constitution"
states that Mr.
the
and traders have been
Cocke according to the
7. The paper
other
.
issues
Atlanta, Ga. effec¬
of
tive March 12, was
dent
.
1
mand for the tax-protected
James
-;
partially-exempts continue to be in favor with large buyers
evidently in the market and the financial district apparently short
in
Division
82nd
France^
:
.
.
.
.
as a
McKay, who is President of
tual institution since 1934. He has
the
member of its
Executive' Committee since 1923
and
markets
money
conservative and
..
.
also of
Chairman of the Execu¬
as
position.
was
accounting and
investment
banking firms; • and
gained his early bank experience
with
B.
was
the
the
New
appointment
of
Roberts as Assistant
Vice-Chairman
bank, Mr. Pedlowe
Department;
Bank
Philadelphia
Editor^pf,
to
examiner in
of
S. Armstrong, Financial
that paper. Mr. Fenhagen,
joining the
voted
has
William
the
timore "Sun"
bank since
F e b r u a r y£;,
capital stock
As to the dividend
and continued
•
House at the organiza¬
tion meeting of the Committee on
March 10 was reported in the Bal¬
Executive
of
Co.
Roberts
tive
Vice-Pres¬
staff
Trust
more
of
was
Wright, President said
capital increase from
$600,000 / to
$1,500,000,
accom¬
plished throiigh issuance of stock
purchase rights to shareholders
;:
Clearing
lowe has been;
1941. Prior
elec¬
the
The Tradesmens National
and
hagen
■
its
of
.
The
Presi¬
dent. Mr.
an¬
-/L V.//
-
was
1939
recent
■
meetingPedlowe
and
to succeed him. i
Although the
.
■
ft
|
■
Vice-President
same
has
W. Elkins, Jr., a
Elkins, Morris & Co.,
in
.
.
George
Toseph
Board.
the
of
cap¬
"John C,
.
.
that
member
a
since
"Journal" of March 18.
v
resignation of George
as
announces
post
ft
Directors
of
partner
meet¬
Chairman /
of
Board
W-1'"'
elected to
was
Elkins
tion
■
Savings
Chester,
McKay
newly
created
i
Board
Chester
Dennis A.
;the
W.
,
-:'V
stock.
new
ft
Philadelphia
of
pany
Kerns, assigned to the 5th Avenue
Office, were appointed Assistant
s
if
Land Title Bank & Trust Com¬
Chief Clerk of the 39th Street and
7th Avenue Office, and
Eugene J.
Cashiers.
by the sale of
;Y-:.>
its
on
"Directors
a
of
Bank
increased from
was
Chicago
stitution
_
of
the
on
shares of $50 par stock. .:
the
of
According to the March
bulletin
meeting
now
...
payment,
which will be
April 15 to stock of record
April 9. It places the stock on a
$2 annual dividend basis. The in¬
■
Comptroller of
.
•
at
PRICE TREND
made
Rogers.
*
Byram
.
bank buyers are now bold enough to look H securities with ma¬
turities longer than those of certificates.
declared the Chicago "Journal of
Commerce" of March 19 reports:
Optical
V':
of
declared
was
Sast Port Chester, Conn, increased
1
very long ago.
so
without uncertainties, even the
stock of the La Salle National
March 18.
Its capital Feb. 27 from $65,000 to
Vice-Presi¬
dent.
The first dividend
Bank
Savings
Y.
S.
.
.
.
are
share
March
on
William
Instrument
The
experi¬
with
years
and Commercial
was a
N.
can
entirely in the
cease
"
ital
Y.
•/''
Buffalo
the
Buffalo,
known
/.•'•/-
Corporation, of which lat¬
ter company
&
1929.
;o
which may
money market conditions through the sale of near-term
issues instead of the distant maturities, which was the procedure
of Feb. 26.
as
Government Trust Accounts
.
mediates and longs, with many of these institutions
The increased
'•
v.
:
'
National
Square,
-f
of
trustee
with the
His
several
CIT Corporation
Credit
the
was
Company prior to
service.
includes
ence
;;:V'
Company. He
:s
a
nephew,
of
William
H.
Glenny, who was a trustee of the
Buffalo Savings Bank from 1877
activities of the
Dawson, who was a
Mr.
''i
capital from $625,March 1
}
American
charge of Personal Loan and Con¬
sumer
V, "
tific
in
effective
.
matter of fact certain non-bank investors
a
.
-
by
In
reporting this the Buffalo "Eveling News" stated that Mr. Glenny
is General Manager of the Scien¬
President
Company
of
York;, announced
Dawson
its
//
Square
Franklin
President
Kleeman,
Colonial
New
of
made
# V
S.
"'/jit''"
Bank; of
\
'
Arthur
-
Bryant Glenny has been elected
of
Mr; RefctsdMfer^
stock.
new
,
Commercial banks continue to switch from shorts into inter¬
additional
an
factor of importance in the trend of prices of government
a
easily take care of
near future.
putting funds into
long governments in preference to mortgages and other loans, that
do not seem to embody the
quality they are looking for now,
/•
As
not
of
and
of income tax payments the money markets
squeeze
this liquidation,
National
sale
•
•
a
created
vacancy
the
tighter
,
■•
longer
no
securities.
$50,000 having been realized
by the
was
through the sale of new stock to
the amount of $125,000.
Forward '; was
Director
to
fill
the
Despite the
continue buoyant because the pressure of liquidation by non-bank
investors of Treasury obligations has slowed to the point where it i*
:je
of
Governments
on
of
Fos-
capital, according to the Office of
the Comptroller of the
Currency,
000 to $750,000 effective
Sheperd
was appointed President, General
Manager and New York Agent,
of
...
12 months.
increased
Mr.
and
capital
Bank
#
capital
amount,
mark in
$5,000,000
Franklin
Bank
25, Mr. Burgess was ap¬
Chairman of the Execu¬
Committee
the
•
The
meeting
a
to
the past
March
pointed
and
International
Banking Corporation at
on
was
dents
Office
Brady
appointed Chairman of
also
was
party
National
doubled,
from
$100,000 to $200,000, a $50,000 in¬
crease having been
brought about
by
a
stock
dividend
of
that
birthday
a
the
Bank of Commerce of Pine
Bluff,
Ark.
has
been
visit the bank, at
New
Gordon S.
The
held with local resi¬
depositors invited to
which time Mr.
Berry thanked the members of
the community whose patronage
had servedto bring the savings
deposits of the Bainhridge Avenue
tive-Committee, and Howard C.
Sheperd was appointed President.
James
S.
Rockefeller, a Viceof
Berry,
First
#
in
*
direction of
Under the
increase
the sale of new stock.
York, located at 3125 Bain¬
W.
of
Avenue Office
Savings Bank
Bainbridge
the
Gage Brady, Jr. was ap¬
pointed Chairman of the Board,
Bank
Reporter
;■
By JOHN T. CHIPPENDALE, JR.
if
toria, Ohio, from $150,000 to $200,000, was effected on March 2 by
bridge Avenue in Bronx Borough,
celebrated its first anniversary on
Wm.
President
Our
columns Dec. 18
*'
Bankers
and
OFFICERS, ETC.
REVISED
Board
these
;
last, page 2492.
NEW BRANCHES
NEW
in
peared
CONSOLIDATIONS
a':.-;.
\
FINANCIAL
quirements do, however, come in for much discussion among in-i*
formal money market followers.
.
'■
c
THE COMMERCIAL
(1442)
26
FINANCIAL CHRONICLE
&
Investment Association IssuesResims of
Sobering Realities
Regarding Taxes
{Continued from page 4)
present philosophy of govern¬
ment, tend to increase and not to
decrease; Hence, our total public
budgets and tax collections, un¬
Education Committee of Junior Investment Bankers
our
Columbia Gas System
Columbia Gas & Electric, having disposed of its electric subsid¬
iaries, Dayton JPower & Light and Cincinnati Gas & Electric, has now
changed its name to "The Columbia Gas System, Inc." Columbia is
one of the oldest and largest of the natural gas distributing systems.
Together with Consolidated Nat-91
4.1 1 •'
ural Gas (the old Standard Oil, (ranging between
system,
560 and 910)
the larger part of the so-j nothing paid in 1938-39 and 1942
eastern territory (except Ag a result the stock sold as low
serves
called
New
■
it dividend policy was erratic, with
independent)
now
-
:y.r
as
Its 19 operating
England).
subsidiaries serve a population of
7,000,000 in the States of
Kentucky, Maryland, New York,
Ohio, Pennsylvania, Virginia and
West Virginia, and the District of
Columbia. Subsidiaries constitute
about
1
during the weak utility mar¬
kets of 1941-42. Beginning in 1943
dividends have been paid in each
year,
with the annual'totals in¬
creasing steadily from 100 in 1943
to 750 last year.
The regular quar¬
terly rate is now 150 supplement¬
an integrated unit with each com-, ed by year-end extras.
The > stock is currently selling
pany dependent on another either
for gas supplies or markets. The around HVz to yield about 61/2%."
system is divided into four princi¬ The price earnings ratio is 8V2.
pal groups —Charleston, Colum¬ As indicated above, share earn¬
bus, and Pittsburgh, and the oil ings are not expected to show
and gasoline group.
much change in 19.48, but 1949
show
a
substantial gain
Natural gas accounts for. about may
92% of system revenues (which in (which, however, might be diluted
if
the
company
should decide to
1947
amounted to $111,700,000)
with gasoline and oil making up do some equity financing). The
most of the balance.
Residential company expects to increase its
sales account for about 47 % of gas capacity. about 80% by 1950, and
revenues,
industrial 23%, com¬ seasonal peaks will then be han-.
mercial 7% and wholesale and died much more easily through
municipal 23%. Some of the prin¬ the use of huge underground stor¬
age reservoirs.
cipal cities served are Cincin¬
nati, Columbus, Dayton,1 Marion,
Springfield and
Zanesville
in
Ohio; part of Pittsburgh and New
Castle in Pennsylvania; Charles¬
and
Virginia;
(wholesale).
Field
Washington
natural gas
at
of New
the
area,
Sleepy
during the war-time pe¬
C.
depleted reserves.
Hence, the company found it nec¬
essary to obtain gas elsewhere and
it is now tapping the big southern
and mid-western fields by obtain¬
contracts)
Transmission,
of
million
350
150 million from
Transmission, and
(beginning April 15, 1948) 50 mil¬
In
lion from Panhandle Eastern Pipe
Line.
Based on" these contracts,
chian
L.
Morse, Jr., of Hemphill,
addition
to
the
perennial
features of the Field Day, such as
publication
the system now has gas reserves
of
trillion cubic feet available,
of which
Country
mittee. He will be assisted by four
Vice-chairmen—George K. Coggeshell of Schoellkopf, Hutton &
Pomeroy, Inc.; Robert H. Craft of
Guaranty Trust Co. of New York;
P. Scott Russell, Jr., of Glore,
Forgan & Co., and J. Emerson
Thors of Kuhn, Loeb & Co. ■
cubic feet through Tennessee Gas
Texas Eastern
Hollow
Noyes & Co., jhas been named
Chairman of the Field Day Com¬
ing daily deliveries (under longterm
be held
Bryce, Clark, Dodge &
Co., President of the Bond Club.
This year's outing will be the 24th
annual event of its kind.
further
riod
will
T. Jerrold
ducers as well
drawals
Day of the Bond
York
supplies Club,
Scarborough, N. Y., on Fri¬
from the Appala¬
day, June 4, it was announced by
including other pro¬
as its own wells.
Dependable reserves were declin¬
ing, however, and heavy with¬
chian
of the
"Bawl: Street
Journal," trading on the Bond
2yz are in the Appala¬ Club Stock Exchange and golf and
and 4 trillion in the tennis
tournaments, mdny new
area
entertainment events
Southwest.
Columbia
sound
Gas
has
long had
financial structure
and
this
a
year,
are planned
Mr. Morse ^announced.
The various activities will be
in
der the. direction of the
committee chairmen:
recent
years
this has become
stronger. Even after giving effect
the
present budget of $40,000,000,or more should be put in two,
000
un¬
following
E.
Jansen
.
.
52%
common
stock
and
surplus.
Circulation: Norman P. Smith,
Merrill Lynch, Pierce, Fenner &
Beane.
Before divestment of the electric
companies and retirement of the
preferred stock the common stock
equity was only 36%; this was in¬
,
Publicity: William H. Long, Jr.,
Exchange:
Robert
Lewis, Estabrook & Co.
'
tion of
serial maturities, sinking
retirements, and reinvest¬
ment of earnings.
fund
iHr©
forma
earnings
per
come
figures
presented
SfSC) have been
Year—
V '■
on
as
.
the
V.' /Amount
$0.79
1942-—
0.87
1S143-..—
0.93
of
which has completely ;
burden
the
ruined
finances
the
of
1948
powerful Great Britain.
In order to effect the necessary
we
theoretical
the
1.34
l?63
While earnings
were
Gordon
•
-
B.
Duval.
Carnival & Side; Show: vWilliam
to
are
6.700
26,8
4.3
1.2
2.2
3,100
73
5,700
16,800
15,200
23
28.0
4.4
2.0
2.3
3.7C0
87
7,000
Trainees
10
27*. 2
3.4
1.2
0.9
2,300
90
5,300
,130
27.4
3.8
1.5
1.9
3,300
83
6,£t)6
In
citizens
'
19,000
,52
35
13
19,600
17,700
€0
0
20
69
20
11
10%
8
this and the
as partners and accountants, which
within the major categories.
)
did not fall
The
following table shows 1947 incomes by positions
.
;
.
Classifications
r.<■;.
Under
4
—'
%
3
11.5
4
:
Trainees
-Buying-
No.
7.5
No.,;
%
'No...
«
-Overall-
,.%
0
•
%•.-;•
No.
18
15
i
12
>.
7.5
3
11.5
rJ 4
.17
4 0
31
57.0
15
58.0
11
48
>1
20
62
51
-
15
23.C
5
19.0
1
4
4
'80
26
22
'
54
100.0
26
100.0
"23
,100
,5
100
120
100
4
.
$2,500——-
Analysts
%
depart¬
or
.;.4
:
No.
$4,500 And over (»)J
$3,500-$4,499
$2,400-»$3,499
;
—Sales—
1947 Income
;
encourage
*
:
the
■{*> Ten had incomes of $5,000 </r above abd two of these had
over,
will
have
to
pay
incomes ,of
Possible
,
reasons
overall basis
an
"
,,,J
are
'
:
Classifications
-
\1
the differences in the levels of income on
for
indicated below:
"1947 Income
-
i
.
some¬
Under
Average Ages
(Years)
—2.9
$3.50Q-$4f489
$2,500-$3,499
,
$2,500
V
:
,
; ,1.9:
;
"
■
'
1.6
,4 3
v',;
27.9
,
27.4
.
»
* ".3.5-:
'
K"' -v27,S^
.'
'
'
.
Average No. of
i
Yearsof College; :t
-
'
:
28.2
2.3
.
^
/
"
Avg. No. of Years in
Securities Business
.
.
,'
$4,500 and over„.
.
,
¥
cre¬
•
*
$10,000
-
"■
•
.
%.9'
1 J
-
'
3.5
»:
;
indicates that any newly launched
business has far less than a 50%
shown
government.
; In considering the question of
top bracket rates, long experience
income
Also, .even
\o succeed.
established
is
evident
that
cards
as
Under
;
qse
"redistributed;"
short years
*
Within
>
over,„>.-
v
.
Analysts
.
24
3,2
2.0
1,8
1.5
2^ *
most
by
those
not
no
tion $3,700) had
in-the business.
and
moved.
will
income
The
the
of
the
try¬
"
'
2.0
\
19
.14
.
,
1,6
,
the securities
no
'
■
remunera¬
'
•
,
prices
are
par,;;
-
The
scaled
from
.
101%
"
-
to
".
:
is engaged pri¬
marily - in
furnishing- electric
Halsey, Stuart & Co. Inc. heads service throughout a substantial
area in Ohio, which includes the
an underwriting group that is of¬
fering publicly today $40,000,000 cities of Canton, Lima, - Ports¬
The Ohio Power Co. first mort¬ mouth, Steubenville, Zanesville,
gage bonds j 3% series due April Newark. East Liverpool, Lancas¬
1, 1978 at 100.99% and accrued ter, Tiffin. Ironton, Cambridge,
interest. The "group won award Fremont.Fostoria,. New
Phila¬
of the bonds at competitive sale delphia. ;• Coshocton; Mt. • Vetnon
and.Bucyrus.
^
on its:hid of 100.5^999.
v
'
>
company
.
ing-to support and revivify at our.
'
:
Buying Department (average 1947
Offers Ohio Pwr. Bonds
re¬
we are now
1.7^
2.0
2 9
-
the smallest percentage of those expecting to" stay
Halsey, Stuart firoup
Our standard of
countries
Overall
>
*
.
spirit of enterprise
moribund
Trainees
-
On the other hand, the predominant reasons given by those
expecting to stay in the securities business were C(l) interesting
business (2) opportunities, principally resulting from the lack of
young men in the business and (3) high salary potentialities.
;
Many of those replying made additional comments,- the most
common
relating to younger men's problems. An example of surh a
comment is "The desire of the securities business to hire high caliber
men ^cannot be realized so long as the salaries offered are so far
below those of industries with whom it must compete for manpower,
and not everyone has outside .income." ;
"ri.;'" "
more
be
'
-
;
rich. All incentives to risk
taking and the production of
-
3.5
expecting to stay; in
voters
be
Buying
,
In addition many of those with
to note that those in the
it will be impossible
by telling them that the
or those of moderate inr
comes, can bear the tax burden,
while thp masses will largely es¬
cape taxation.
There will soon-
;
expectation either way
the present time mentioned that
they might be forced to leave
the business because of inability to live within their
present incomes.
All except two of those
saying that they did not expect to stay in the
securities business earned less than $3,100. However, it is
interesting
en¬
"rich,"
as
at
few
a
overall,
as
As indicated by the large percentage of those replying needing to
other resources in 1947 (83), the problem of remuneration was
business.
our
fiscal ruin and to individual
well
as
...
.
Sales
$2,500-—___
mentioned
to the in¬
government ^con¬
tinues to spend our - money; * in
peacetime at anything like the
present rate.
It is the road to
departments
—Average Number of Years in Securities Business^-
;'
•$3,500-$4,499
$2,500-$3,499
V
evitable disasters which lie ahead,
provided
and
';$4,500
;
are
definitely "stacked" against either
the individual enterpriser, or the
corporation, if the public powers
levy taxes exceeding 25% of the
total
taxable
net
income; and
probably any top bracket Vrate
over
25% tends to check indi¬
vidual initiative. ) The American voter must be
f
*'
r
and
■
>
the
definitely informed
Classifications
:
businesses,
year in and year out, not more
than 50% make profits. Hence, it
among
in>|
positions
V-'Income
.
i
chance
between
below:
i "Net -proceeds from the sale of
Co/
speedily, the -bonds, together with 'JSY-OOO.000 received from the sale of
reversed,
like
the
Gadarenian
(S-wial to The -JPwanci^ Crr?ONicrx> v. .*■
swine, -we shall rush madly vdowh 7,048. shares of common stock to
LOS ANGELES, CALIF.—H; H
the ^steep place into the sea; jand the company's parent, American
Foster has joined the Staff of G.
Gas and Electric Co., will be used
we ourselves, through our public
Brashears & Company; 510 South
extravagances and lack of twill¬ for. the redemption of gold deben¬ Spring . Street, members of thd
ingness to; fight each; day for free¬ ture ;bonds 6% series due 2024; Lbs Angeles Etock Exchange. ^ •
dom from over^centralized.. gov¬ prepayment of bank notes; and
ernment, will havg become the for .the company's- construction
further-expense.
Unless
our
.
•
course
is
.
-
unconscious
,
agents
The tax bill
1948
of bur
.own
' •;;*;
is
now
being enacted
program. The cost of its construc¬
tion program ,for 1948 through
1951
is ..estimated ,to~ be approxi¬
With MeiriU JLynch CQ.
"TviisNicxB)
(Special to-,
v
LQS ANGELES, CALIF.--Ken¬
merely
a -temporary
neth ;R. 'Rharwin has been added
mately $71344,000."
■ ; l''*;
expedient.It must,
"Regular redemption prices for to the staff of Merrill Lynch,
by a drastic down¬
ward revision of the higher brack¬ the '.bonds pre set at 104.50% to Pierce,, Fenner & rBeane, 523 -West
.v;'"
ets next year.
v..
par,
while special redemption Sixth Street.
vote-getting
be followed
Sports!"; ^William
Chappell, The First
19
of their
for
Laud-Brown, Bank-
No
2U
73
It would appear from the results that the number of years in the
|
securities business may be the principal reason for the differences
M. Marks & Co.
Tru^t Co.
Indoor
.?
69%
following tables, Sales includes traders and men
in municipal department; Analysts includes
economists, statisticians,
and research and. investment
advisory men; Buy-ng includes syndi¬
cate and new businessmen; and Overall
includes, in addition to the
thing directly toward the support
suicide.
Music: W.
in Sccur.Bus.
Yes
26
Overall
Expect to Stay
;
Analysts
Buying
maximum production of goods,
and are to maintain our free en¬
terprise system. We will have to
get back once more to top brac¬
kets nearer 25 %, and virtually all
P. King, Harris, Hall i&
Co,, Inc.
Pool: David W. LovelL Laurence
ers
relative^
fteady during the period 1937-45
Jr., Blyth & Co., Inc.
$
88%
or
Old World which
Hipkins,
$
$
2,900
well
level,
50%
poration.
A.
1960
-sources
Bus.
Expected
-Income—
1.8
bracket rates will have to go
living will be reduced to that of
Clifton
ents
1950
reductions in our tax burden, top
Baseball:
Gardiner
H.
Rome,
Stone & Webster Securities Cor¬
Guaranty Trust Co. of New"York.
^-Of-
(Est.),___,
Clark,
lege
Re-
1.4
once
Dodge & Co.
Dinner:
1946-™—1.20
1947.-_.__,__— 1.3.6
1949 (Est.)_„._„„..
Rex,
Age
Other
ments:
will be broken.
meyer,
1944____——0 92
1945_«
M.
plies
Used
Job
be, year in and year out, almost
uhsupportable—and it is the kind
wealth
Horseshoe pitching: Gerald B.
West, Stone & Webster Securities
Corporation.
Trophies:
Harold
H.
Cook,
Spencer Trask & Co,
Entertainment: Edward xGlass-
follows:
1941__.__—_L
William
J.
Braun, Bosworth ,& Co., sInc.
net in¬
to
Golf:
Tennis:
share
of common stock have been as fol¬
lows
(including projected esti¬
mates for 1948-49 based
f'ri,
Stock
apd is currently decreased by the
large bond issue to 52%. The pres¬
ent stock ratio seems
likely to in¬
crease gradually due. to the
opera¬
Dept.
1947
Income
3.6
.
Doremus & Co.
creased at the end of-1947 to ,61%,
In
pend- Sec.
above, replies from members such
further to mislead the mass of the
Attendance:
of $45 million
Years
of De-
might be close to $35,000,000,000,
still fuliy 25% of a reasonably
"shaken down" national income.
Even such a burden as this would
or
Hunt,
sale
No.
of
Col-
27.5
were
debentures, due 1973, the capitali¬ White, Weld & Co. v
zation is definitely on the conser¬
"Bawl Street Journal": John W.
vative side—about .48% debt and
Valentine, Harris, Hall & Co., Inc.
recent
the
Re-
58
sufficiently aroused,
we would still be confronted with
a total tax burden which by 1950
voters
Years
of
or
Sales
be'done if the
should and could
as
though
Even
No,
A
Pos.
Federal Government for any sub¬
slavement by the State.
The larger incomes and estates
have already been substantially
to
data contained in these replies follow:
decline in the state and
government
expenditures
and taxes, we must look to the
any
local
ation of venture capital, and the
Day June 4
The 1948 Field
Club
The company in the pasty obtain¬
therefor, and Other Comments. Approximately 60% of the 220 ques¬
tionnaires sent out Were returned. The more pertinent and
interesting
.
ed the greater part of its
of
Income from Job During 1947, Did You Have to Use Other
Financial Resources in 1947? Expected Income in 1950 and 1960, Do
You Expect to Stay in the Securities Business? and the Reasons
Hence, as stated above, as there
is little probability or possibility
if
ton, Wheeling and Huntington in
West
Total
such conditions?
reductions.
requesting following data: Age, Years of College, Number
Dependents, Years in Securities Business; Posit-bn or Department,
of
income.
Does any one
believe that we would be other
than a nation of "slaves" under
stantial
Feb, 5, the Education Committee of the Junior Investment
and Brokers Association sent a questionnaire to all its,,
members
national
below
New York Bond Club
On
Bankers
and
prospects of personnel in securities business.
,
cated, could easily turn out to be
as much as 40%-50% of our entire
of
Brokers
a:ia
Association reveals data regarding age, education, earnings
assumptions above indi¬
the
der
Thursday, Ar..i 1, ,1948
J3.
Boston Corp.
.
.
.
Volume 167
U.N. Unit
Its
Reports
1847 Exchange Exhaustion
on
Department of Economic Affairs points'out task of European
Far East
and
v
THE COMMERCIAL
Number 4686
r aeons
true Jon
is
far greater than foreseen when
International Monetary Fund and World Bank
.of
formed..
were
In response to a resolution of the Economic and
the United Nations, passed March 26, 1947, the
7
Economic Affairs of the United Nations has released
Social Council
Department of
report on the
a
foreign exchange position of the devastated countries.
however, has notbeen brought £
to
up
date,
since
the
data
does
;
included
which
1947,
This report,
smaller
a
[not extend beyond August,
1947.; number of countries and an even
According to the report the com- smaller proportion of the total
parisorr of
[
foreign
exchange
j deficit than the present report,
for-' concluded by stating that "it is
eign
.
exchange
countries
earnings
under
the 1 clear that until action is taken by
private
organizations,
govern-
of
review
reveals
[that nearly all the countries Jhad
ments,
[ large deficits on current account
to augment the loanable resources
in 1947.
The deficits have recent-
/ly tended to grow larger than
anticipated, and
was
or
international
to
Known
now
programs of
agencies
the import
exist,
the governments
can-
in some cases, not be financed in full."
Since
77'7an. inadequate ^measure of the that time it has become even
gravity
,
of
the
are,
foreign
exchange
clearer that the task of European
problem since foreign exchange reconstruction, not tqmention that
^Requirements in these cases have - of the Far East, is far greater
.77
.
''777to he met in
one kind of currency
'while foreign exchange resources
:
7.';'accrue in/different kinds of ciirfirst.
•
convertible
not
rency,
;
In
some
[than
foreseen when the International Bank for Reconstruct
was
tion
and
Development
and
the
the International Monetary Fund were
into
the
cases
Navy and the Air Force, and the
Chairman of the National Secur¬
deficits
created and when the major post-
available
event of
In
the
war.
to
National
terior,
of
the
Treasury,
and Labor.
Chairman
Projects
with
phrase
be
"co¬
of military, industrial
civilian
mobilization,"
the
Board's duties and responsibilities
vast
are
and
of
aspects
virtually
cover
all
except
strategy and tactics of the mili¬
economy,
the functioning of
and
tary
our
tially by drawing
•foreign ;exchange
substariremaining
or
upon
war
were
'
-
'
*
of
cies,
•
-
-
-
best endeavor to be prepared for
war whenever it might come—in¬
cluding the immediate^fpture.
V777
What National
'
■
*r
•-■*
•
--J
;■.<
^7"-
7
7.
7! To
"
:fir
tended
.
to
the world.-
:
;
t
;
Consequently, it
for
seems
that it is timely to take stock of
our situation and make our plans
and
for
arrangements
o
th
e r
of
world—I fj have un¬
bounded faith in the possibilities
tol
the
of
I became convinced
years ago when I tasted ethyl al¬
cohol
(mixed with ginger ale)
made from gasoline!.
■*
<
of synthesis.
supply -..while, cohserv777-' hig as much as is reasonably pos- /■ We in the U.r S. A.
sible in .our country lor a possible! thusiastic
people and
'; sources
'
rainy day.
Furthermore,
there
are
many
critical and strategic materials of
which we have no sources in this
*
go too
we
begin
somewhat
(Continued from page 17)
the storehouse
be
far, such
as
with,
more
of the
some
ords
of
Resources!
Board
Is Doing?
,
more
World
,
have
we
than
7
.
tionship
done
dust
off
rec¬
II,
and
are
prepared to suggest ways of avoid¬
ing
some
mistakes
that
of
that
the
We
obvious
made during
more
were
conflict.
are
making
in
in
weigning
organizational
wartime
agen¬
their interrela¬
light of experi¬
the
World
War
II, with the
smoothing out the
of
now
far
an
en¬
sometimes
in the pres-i
enough removed from World War
II
to
of
substitutes
of
science,
(4)
7menis
r
We hope that arranged
of
mutual
interest
will
•eventuate through-the operations
f of our foreign relations, activities
.
'in,
.
the
State-1 Departments and
-
•
through the European Recovery
[ Program that will channel greater
....
«supplies into this country. I am
»confident that in time this desir-
/ "I
able condition will
77
come
about.
Another great possibility is in.herent in chemical synthesis. Our
7
.
»
•
•
,
American-made synthetic rubber
;is
.
a
World War II
ordinated.
be
can
/
soundly
co¬
and
We are
undertaking the
prepa¬
ration of necessary legislation and
executive orders. Equally as im¬
portant,:, we shall
endeavor
to
build up and keep a current roster
of qualified men to be selected to
fill the jobs outlined at the top
echelons and get them to thinking
of their problems in advance.
time
capable
great deal of
trying to persuade
business
executives
to
in
down
to
Washington for
of time to help
orient and give direction to our
work. The problem breaks down
come
limited
periods
into
many
so
have
must
flight
at
categories that
least
a
men to help
into the clear.
dozen
,
we
top¬
work our
It seems to
me
that for a job of such para¬
mount importance we are, very
modest in our requests to industry
way
that
we
us
-
should
receive
the
cooperation without
necessary
having to plead for it.
I scarcely
need to refresh your memory con¬
cerning the criticism from
of the way the war agen¬
nessmen
cies
set
were
up
World War II.
much
that
busi¬
of
I
and operated in
readily concede
that
criticism
was
I know how distasteful
justified.
it
is
business
for
executives
to
come
industrial mobilization plans which
just
that
fascinating pos¬
materials
under study and many beyond the
laboratory stage. I shall not pur¬
sue
the subject further^ for it is
a
complete discussion within it¬
self. The developments have been
of such significance as to require
under
Simi-
pressure.
7[7'' larly, petroleum products through
7/synthesis
.
i
7;
stage of
are
already beyond the
speculation. Pilot
more
///S and::demonstration
~
been
in
plants
operation for
some
have
time
7 7 ' under the direction of the Bureau
777 of Minesf Interior
'
-
•
has
■
•
;
Secretary Krug
recommended
program
7,7'
a
long-term
of construction, and an
program to build three
plants of commercial size for the
7: by-;;two
'
different
processes
ably
a
great experiment is under
7:v7 way near Pittsburgh by two of
77 7 our great corporations—the Pitts7.'; burgh Consolidation Coal Com-
7>
panyiand the Standard Oil Dejl- l ^i°bment Company. In Texas
7:
x
;;
'
7
>
•z
.;
and Kansas-commercial piants are
under
eonstruction
to
are many
of
substitute
re-examination
a
The
.
critical
the
of
stockpile list.
•
:
foregoing leads to the logi¬
question: Why am I here and
we doing about it?/7.[:-
cal
what are
and
7/7 ope from oil-bearing shale. Not¬
;
There
sibilities
immediate
7 7 synthesis of petroleum from coal
:
between the military procurement
convert
/7:
National Security Act 7 7
I
hope all of you have read the
National Security Act of, 1947.
I
do hot want to bore you by para¬
.
phrasing
vides
cies
for
on
tional
headed
a
law.
their
disrupt
busy routines and
Washington to work on
to
M Hi ta ry
Establishment
by the "Secretary iof/De¬
r
Services; the-Na¬
of
7
and ph^nical by-products.
Having [heeri born in Charleston,
7
West Virginia—the chemical eapi-
of the President
the
ject*, to
the
national
security
clause, have been assigned to the
various military services by the
Munitions
Board.
Through edu¬
Armed
I
have
777777/7['.7 7-
enumerated
only
:-:
some
of the
problems. There are manv
others. Your patience would not
stand
I
more
have
the
details,
given
scope
you
I onlv hope
idea
some
of
of the whole problem.
You have been generous
and hos¬
pitable, and I cannot thank you
enough for the opportunity to
meet with you as your guest in
this great industrial city of Pitts¬
cational orders, cooperative en¬
gineering by government and in¬
dustry, procurement plans and the
burgh. 77'''7 ."7'v'7* •77"
like, many of the plants and in¬
dustrial companies
are - already
Requirements for National
aware
of their respective roles
Security
and missions in war production-—
I am going to conclude with
particularly, with recpect to mili¬ what I conceive to be some of
,
production of basic materials and
equal level: The Na¬ certain common components which
hcts
;
industrial
life.
tary end products. It is obviously
the answers to the auestion: What
impossible to extend this method Ajre the
Requirements for National
Briefly, it pro¬ of output allocation down to the
7Vnatural- gas into petroleum prod- fense, established for unification
77
and
economic
suppliers.
coordinate -agen¬
three
an
their prospective
The output of certain
plants, as well as gov¬
ernment-owned plants and those
which have been disposed of sub¬
agencies
tional Security Council
as
composed
C^feirman^ the
are
necessarily subject to alloca¬
tion.
77/ 7;1 -7
also well along in intenesive studies relating to fiscal
We
and
to
are
Security?
d) Pursue a clear, just
honorable foreign policy.
and
by
the
necessities
hemisphere, of
new
metals and minerals—
of
All of the foregoing, while
(5)
essential
and
will
important,
be
of no avail unless it is supported
by the mobilized spiritual resour¬
of all of
friend or potential enemy
have
the
military
that
we
capabilities to
of adopt
without
delay
universal
people.
that I speak
our
Finally, I
am
sure
I
hope
express the .ardent
this nation shall not
into
another
that
thrust
be
conflict.
armed
I
d^auieting world
unfold, both in the im¬
mediate and remote future,
we
shall all be able to keep
our
hearts
and
heads
where
they
ought to be.
But, if despite our
best and most honorable efforts,
war
should
suddenlv
descend
that
as
events
let
upon us,
get and keep our¬
us
state of constant readi¬
We shall make every hon¬
selves in
orable
a
effort
efforts
our
to
If
prevent war.
of no avail,
are
we
determined to be prepared to
are
it.
win
v\
■
..
.
7
•
..
Reducing Bank Bend
Holdings—Effective
Debt
;
Management
(Continued from page 23) 77
.
to compete tor scarce goods,
cease
with
attendant
bidding
prices. ; Such dollars,
held
are
available
of
up
savings,
as
future
for
under conditions more
advantageous to' the individual,
spending
and more advantageous from the
standpoint of the national econ¬
omy;
contribution
a
and
has
the
to
well-being
America
a
bul¬
stability; it is
business
for
wark
/ '•
7
constitutes
[;7'/
thrift
-
/Such
happiness
investor.
the
of
great under,
the tenets of personal thrift.
grown
Why Should Bankers Continue to
Savings Bond
Support the
/7-v Program?
That
is
financial
what
ask
to
fair
.a
question.
executive
he
has
can
The
the
right
expect to
gain from the promotion of Sav¬
Will it strength¬
ings Bond sales.
his position businesswise? Will
en
it pay
off in
a
tangible way?
7
Considered in the broader sense,
the
is
the
to
answer
an
obvious
first question
What's good
one.
for the country, what's good for
his community, what's good for
his customers is
the
and
good for the bank
banker.
No business group
has
a
greater
fi¬
stake
in
nance
and a sound national econ¬
sound
government
Selling Savings Bonds con¬
to both.
Under present
conditions, anything that can be
done
to
check
spiraling prices
will help all financial institutions.
The fight to stabilize the economy
is your fight!
One of the most
omy.
tributes
effective fronts
can
on
which bankers
fight is in the Savings Bond
>7
campaign.
Each
~
[
that Mr.
and Mrs. America buys and holds
is stored up purchasing power for
Savings
the future.
Bond
In Series E or F
bonds,
this buying power will grow with
each six months the security is
held.
(2) Strengthen our armed forc¬
es.
and
thus
serve
notice on
monetary policies—measures back up our diplomatic commit¬
To
do
this we
should
restrain * inflation,
problems ments.
presented
:
including petroleum.
ness.
We have spent a
our
t
fuel.
"
v.
this
in
sources
hope
•
well as
er.t case of oil use in this country.
a
number
of
other
important we all hooe will never be used. Buf
Due to a combination of circum¬
aspects of our national capacity if our business and industrial lead¬
stances, which are unnecessary, to
wage war.
1 ers do not make the sacrifice now
for me to enumerate, it would
in
helping their governmenta l
We have had the benefit, for
appear that all of us suddenly de¬
feel that they are entitled to little
cided to install oil heat in our instance, of certain work on the
subject instituted by the former complaint if such plans are hot to
houses, in hotels and in industrial
their liking.
-7- 7
:
;n tallations.
The cumulative ef¬ Army and Navy Munitions Board
We need men; with a knowl¬
and published in tentative form
fect. if it continues,
will be a
last Fall as a master plan with edge of industry, production, ma¬
definite shortage of oil, which
chine tools, facilities, raw mate¬
one of its hundred-odd annexes—
certain parts, of the country felt
that relating to the organization rials, management experts, men
keenly ;this last winter. It may
skilled in organizational problems,
of the War Production Board.
be of interest to add in passing
in personnel training, price con¬
One
of
the
most
important
that jet engines use fuel from the
trols, finance, economic stabili¬
same
cut from crude oil that is aspects of industrial mobilization
zation, 7 industrial
engineering—
used for manufacturing heating
is that of contact and planning
and all of the other facets of our
shining illustration of doing
*
by the application
Encourage jn every way
discoveries, in this, country
new
.
country.
and
stockpiles
of
critical
and
strategic materials.
Direct our
research and development activi¬
ties toward the further discovery
the minds of all Americans when
industrial
as
;
it is our hope that
much, if not
all, of the authority exercised by
some 36 separate
agencies during
give us a fairly good per¬
spective of the general pattern of
mobilization,
/.<
sources
our
ces
i
are
Increase
(3)
rougn places and of eliminating
potential jurisdictional conflicts,
and
|
important
War
numerical strengthour
civilian
indicating
ences
-
■
mended to Congress to bring our
armed forces up to the required
our
intergovernmental
credits foreign relations. The latter, as I
granted. In this connection,- have pointed out, are integrated
in the Security Council.
777,77','
resources and the second annual report of the
You may rightfully ask at this
,-utilizing the balances of foreign ^International Bank, recently pub[loans already -granted. Other lished^states: ''Because the re¬ point; What have we accom-,
v/77 countries less * fortunately - placed quirements are greater than: an-, plished to date?
My answer is
we
have
oaay, of course, have to reduce ticipated,
been
because the scope of that
organized
their deficits on current account activity and loanable resources of
slightly over three months, and
"by a curtailment of imports. Inthe Bank are limitedjitismani-. we are still looking for the best
'either 'case, however/ the
year
fest that the Bank can provide talents we can find to head some
1948 will see most of the countries
only a part of the answer to the of our important divisions.
with
their
foreign credits ex- problems : which
confront
the
Therefore, while I cannot be too
[hausted and their foreign ex-, world today." The United States,
specific in telling you what we
*change assets rapidly running out, which has so far been the priri- have
accomplished, I can say this:
if not already depleted,
unless cipal source of external financial In
Spite of a still incomplete or¬
?
further
external
assistance
is assistance [ for
the
devastated
ganization, those of us who are
'forthcohiins,'
7 v *:! countries, - is
[now! considering on the
job have already rolled up
i
The Interim Report of February means of further assistance.
our
sleeves and are making our
77'may be met entirely
are
objective
ordination
and
re-enact Selective Service/
President Truman has recom¬
as
capabilities against the es¬
timated military and civilian re¬
quirements in the event of war.
[We
pf-the
course
We should immedi¬
ately
these
charts
the
over
ahead.
we
are
and fuels—to the end. of
Commerce
the
reserves
the
study
rious basic materials, of industrial
capacity,
power
transportation,
appointed from civilian life, and
reports directly to the President.
Coupled
that
so
recommend
underway for the
of potential supply of va¬
In¬
must
to
eventuauiy of war, as well as an
organization' set up for
Secretaries
Board
the
problems*
able
27
military training legislation to /
give our nation powerful, trained
years
its administration!
Under the statute the
of
of
efficient
Resources
Agriculture,
smaller
foodstuffs
type pf legislation for the
proper
the
Defense,
be
may
Chairman
thq
Security
consists
State.
in
of manpower
'
addition
Board
of
mobilization
the
We arc studying various aspects
keep abreast of events and situa¬
tions throughout the world in
their relationship to our own na¬
tional security; and the National
Security
Resources
Board,
of
which J am Chairman, a civilian
organisation designed to advise
the President concerning the co¬
ordination of military, industrial
civilian
supplies
to
measures
and essential consumer goods.
ity Resources Board, designed to
and
(1443)
price controls and
apportion equitably
Secretaries of State, Defense, Army,
re-
quirements for 1947 with the
CHRONICLE
FINANCIAL
&
Series
G
bonds
terest checks into your
six
each
bring in¬
community
The
months.
value
of
individuals
today is $46 billion. It will gcow
if we keen promoting and selling
those
bonds
bonds
with
our
might.
held
all
by
our
skill and all
-
,
28
(1444)
THE COMMERCIAL
(Continued from
subsequent
decline,
shown for
Thus,
during
after
World
prices
has
4)
page
smaller
was
wholesale
prices.
immediately
and
War
I,
consumers'
than doubled (106%).
more
during and after the last
this
wholesale
prices.
peak
their
also
of
prices
has
been
In
fact,
rise,
are now up as
true
much
I
refer
War I
products
i
|
Several
V;
important
period
The
over
the
and
1914 to
to
a
war
deferred
be
During
conflict, we spent ap¬
proximately $300 billion and this
spending has not yet been com¬
tures
*
After World
substantial
they
for
War I
prices
not so
large
•
-
but
price
in our history—and
difficult to- visualize our
able to
off
come
I
as
have
If
it
is
these stilts.
previously noted,
now
"'
;
v
/
*
.'
.
in
labor
cant
after
estimated
been
as
30%, whereas this
time the increases thus far have
much
more
moderate, and
example,
spending in this
total
current
decline
will -be
part
reversed.*
decline
a
One
final
word (•
*
concerning
pe¬
actors.
They increased by sub¬
stantially greater proportions than
this
of
serious distor¬
Such
riod, prices of textile products and
building materials were the bad
armaments / pro¬
adopted,
a
a
prices
line in 1920 while
today some
are out of line.
In the earlier
60%,
are
prices.
in
food
of
coun¬
declined by 5/eths from the
World War I peak. This
time, the
decline has only been about
if
correct
tion-
and
thesfc price relationships. It would
be misleading to leave the im¬
pression that no prices seemed out
try
posals
tliey suggest that
farm
helps to
'
quickf
For
in
decline 'in farm and food
prices was widely regarded as a
heathy development.
ly, while today armaments expen¬
ditures are still being made on a
scale.
one-
ruary
non-existent. ?? •.*..?•
Finally, after World War I, the
world disarmed much more
cases,
government
about
are
helps establish better balance be^tween these /different categories
of prices. That is
why the Feb*
at as much
some
because
decline
productivity
War I has
prices
,
many
eWorld
l'ood
while other wholesale prices are
13% higher.
/•
,j
These comparisons are signifi¬
-industries. In this
connection, too,
it is significant to note that the
and
seems
fifth higher now than at that
time
In
Breakeven points have been
raised to new high levels in
vast
But it
significant distor¬
developed the other
a
the, comparison is made be*
and
being
the stilts threaten to
become big¬
'
low.
were too
tween recent' pe&fcs' and-the;
postWorld War *1 peak in
1920, farm
ever
ger.
in
unbalanced during
because farm
/ For example, as compared with
1926, farm products in January
1948 were 99%
higher, food prices
were*;80%
higher, while other
they have today.
system today is on
higher labor; cost stilts than
been
rela¬
years
parison:
were
..before
rise
these
power as
Our
fact,
as
other years as the basis for com¬
the past two years, and the labor
unions did not have as much eco¬
nomic
developed
that
This
did
other groups
of
prices.
This
consumers' price index
1935-39=100
>>'>.'( ••?'->>"
Dec.,' 1914
"/■'■■■;
'■
All
'
tt'&A
•:*•-
;
to
-
-
:
105.8
--
Clothing
;
Rent
.
'V"'1 29.2
—r-
Fuel, electricity
Housefurnishjngs
;
120.5
199.6
'
■
■
it-'
•
{" -V69.8
'
/',>•* 209.7
91.1
90Q
7
209.7
•
-
V!H I
119.1
S<•
^Percentage
Average,"- j
,
.
All
commodities
104.8
89.8'
169.7i
45.4
100.7
Other
-
than
Farm
,
'
commodities_7;I''
farm
and
Products„_.,__
and
Textile
Fuel
and
-
metal
»■
„...to
162.0
132.7
May, 1920
167.2
->
Jan.,'1948 Jan., 1948
165.6
J —r 1.0
,
*'. 253.0 V+
;,.
157.0
183.9,,
96.0
157.8
157.6
—
98.7
165.4
158.0
—
179.9
193.2
199.8
110,9
188.3
182.3
77.8
nU %i47.o
159.8
130.0
63.6
155.5
^2154/5
113.4
164.4
193.1
t
nJ
4
82.6
i-
;
63.5
,
ji' 1
***
173.70
+12.5
0.1
4.5
—13.2
196.2
244.9
♦
;
148.1
147.3
113.4
'—37.9'
163,4
170.6
,152.3
.to-.
......
,
02.2
212.0
-
'
Perc.entage*
Change,
,
152.4
93,9
j
May, 1920
..
141 7
Miscellaneous1 -LJ-'Jhi'
96.3
■
169.8
materials-w-.__„_,
,_w:
piemicals anddrugs__„i-__,^„'_ ^
Housefumishing goods^
.(+45.4
•
•
109.0
products__„
Building
2.7
+23.6:
*+•13.3 >:j
■
■.
155.5
lighting
s
-
+17.3
,
+22.1
+
3.4
—21.9
,
>
■
-
—18.6
—
0.7
+<17.5
—20.1
*
176.5
30.0
They
this
new
bor¬
a
for.
a
sup¬
movers
tending
mand.;?
it
be
of life or semi-luxuries. The basic
fact is that for most products it is
vital that mass markets be reached
if
available
sold.
■v?-:;7:.";>;
As
7,
of
supplies
you
in
practice.
However, in the or¬
ganized commodity markets such
we have for cotton and
grains
as
and
for perishable foods such as
vegetables and meats, it would be
difficult, if not impossible, to pre¬
vent price rises in most instances
take the
to
supplies.
dicting
such
mean
wholesale price level of
fully operative for food
decline of 45 points from
last
114
a
or
a
decline
a
—
would
The importance
of such a price level in terms of
replacement of plant and equip¬
will
point
out
bo
realized
that
it
is
when
higher
1890
for anjr jrears from
.»*
.
*
~
f
.
J£*
-x
*.*'
.
I.
r'~
1
J
*. V
'
I
dat4
make
less
buy;
services
or
rapidly when prices
and. they, ; will y become
losses
decline*:
certainly would not
wise policy to specu+
Itu
to be
seem
late
in
a
when
inventories
prices
this
at
time;
of / past
interesting illustration partic¬
ularly in the used car market for
increases—
wage
new
which have contributed in part to
lead to new waves
it
the rise—and
We are currently
witnessing ta!(renewed drive for
higher wages based upon these
q
,
.
are
war and
post¬
periods. The paradox has
been that these are the
very in
dusti'ies which have been made
,
the
in
terms
framework of
our
what
of
leVel, they
can
i t h i
tutional
arrangements.
useful to review
It
n
are
the
not responsible for
factors
caused this rise.
•
which
.
T
have
Labor wants
lower living costs—which is what
it
higher
buys—and
it
what
for
wages
Businessmen
sells.
are
enthusiastic about lower costs but
selling; prices.:,
lower
is true of farmers. The
politicians
have been no
talk about
excep-
higher
taxes, which is the price for the
service they sell—and a
pretty
They,
ele¬
mentary economics.-
-fcr
else. The fact seems
someone
to be that
to every
high prices are popular 7
group which has some¬
thing to sell and which is in
.to f7 share
in these
a po¬
sition
high:;
But
That
ness
price is a deflation in busi¬
activity .((Deflation is unpop-
ulafr—politically and socially.
It
means
a
lower national income^
It means smaller profits. It means
less
overtime
and :? smaller
pay,
checks. It means smaller farm in¬
comes. 7 It means losses on invest¬
ments
7 and business, failures.
It,
It means
lower tax receipts and inevitably
pressure
for
more
government
spending.. 7;7/>;7>> '(■ ?,"V1' "V?; ,7 " ■'>••? "i
On the other hand, all history
unemployment.
means
shows that the excesses of a boom
The
later.
be, paid for,
sooner or
the
payment,
the smaller the price to be paid.
The longer it is postponed,? the
sooner
the, maladjustments
ing costs.
more* severe;
become; and" (the. greater
are
.thq
economy.
They determine ; the
total volume of supplies and how
They are not responsible for the
higher freight rates which mus,
pains of readjustment.w?-
""v
1*i
be paid
;
these
supplies " shall be divided
among buyers. Rising prices stim¬
or
ulate
able to higher wages,
Prices
perform two tasks in
greater
supplies
and
our
for
creases
cut
because of higher wages
the
many; other price in
which have been attribut
is
Of
course,
such
all *net
not
companied by
created
point is reached where supply and
and explains the tremendous pres
sure which has been exerted
for
franchisement
upward movements in the
structure.
;(7 '.V
creating
demand
in balance at the pre¬
vailing price. The important point
are
to 7 remember
tions
is
that
both
func^-
during the war years.
primary source of inflation
price
'i?;
They are not responsible for the
foreign policy of our government
be necessary in * order to deter¬
mine whieh buyers will obtain the
forced those prices to record l}igh
levels and created serious new
are
are
limited
supplies
(e.g.,
which
grains,
automo-
biles)!
deriiaridrisa'greater than
and
sup-
prices 'do not' determine
f
led
to
which
large
the
past,"
-a^4
in
fixed
growing
well
an
'income.
*
of-
The
this :*
>diseii-;
steadily
of (consumers ;is
grave social ; problems,
bloc
as
ficulties.
creating
economic;Jdif-
"(>-/7'
of
There is little point in ignoring
the fact that price deflations are
turn
unpopular. Nor the fact that after
purchases
purchases
with
as
important. Thus, if prof¬
high, a price increase may
not be required to obtain
greater
supplies.
But the increase may
its
In
such readjustments havb been
have
the
reverse
tend-ency.
Through this price mechanism a
is the
readjustm^
a
loss.
improvement Tit
labor
and
industrial efficiericy^
Relief would be given to the mil¬
This lions of sorely * pressed person^
; 77
,
They are not responsible for the
huge volume of credit inflation
,
.
expensive one. I might add—while
demanding lower prices from in¬
dustry. Every one seems to be inerested in having prices reduced?-;
have had to
•
are not responsible
for
rise in food prices which has been
the main factor in the rise in liv¬
(
should
some
of
many
' the
existing iasti^
w
-?>.?>-;■?:»7;'{:y\{yyh^y, '
Although it is popular to blame
businessmen for today's high price
"do something about it." Much of
the
discussion, however j seems
accomplished,>
whipping boy for the price
rise.
demands to
many
goods
war
With such
that there
manufactured
est increases in the
A
v.
i
.significant effects of
rising prices, it. is not surprising
>
As I pointed out .earlier,
cars.
is? these
prices which have had the small¬
of labor unrest.
factors.;;
things
products ?
let
an
Finally, price rises wipe out thd
gains
the
sell.
we
,,We ?
many cases.
for
not
that
as
lower prices for the
want
we
I think
same
me caution you not to delude
prevailing currently in
that
many lines, such a decision means yourselves*' into " believing
that
wishing will make it so. - High
many consumers
who
are
prices
are
a
result
of
underlying
willing to pay the prevailing price
and even a higher
price are not pressures—they can be brought
down only by modifying or re¬
able to; obtain' the
product
In¬
evitably, some of these potential versing those pressures. But there
will necessarily be a price to pay
customers
will
bid
above
the
established price determined by to obtain a significant downward
the producer. Automobiles furnish readad justment in the price level.
will disappear
ir.ventorial
the
those
as
increase
in borrowing.. As a result of the
postwar price rise; large inventory
profits have been made but these
stabilize,
of
to cut them regard
fact that demand is
or
nec¬
temporaVily in excess of supply prices.p.\x<r
We,* can get lower prices.
Under shortage
conditions such
ventories valued at higher prices.
an
a
unchanged,
Jjr
working capital tied ub in in¬
This> too, has - led to
the
deliberate decision not tc
raise prices much, to keep therr
Similarly,
industry
finds
a
growing proportion of it3 profits
or
With
For manufactured
products,
the other hand, the
producer-caii
than
1
fall.
change in the situation, the trends
shifted promptly and
dramatically
in February.
except 1917 to 1920 and 1946 and
I
and
summer
we saw
as
mon¬
steps
demand-supply forces have been tion.; Many
the present level.
ment
These
the
given to OP A in
same
exceeds available
is
answer
;about
large in¬
here and abroad
demand
bold
really want lower prices?
-;he
not
not pre¬
from
to reverse these tenden¬
cies.
' v7??7'';\ .7v7"+. '"'7V;
v, .■ ';*'7!*-^:?;?7; •:=■j-7-7:''??(
This raises the question, do we
The
develop¬
am
directly
supply.Vand to the unwilling¬
sistent
A similar
r
de¬
essary
many segments
economy this supply-de¬
mand-price system operates more
efficiently in theory than it does
spiral flows
ness
be
the
of
inflation of bank credit and
ey
:v.'.;;-yk/y-
■
know, in
to
are
volume
record
a
government policy, past and pres¬
ent.
I refer particularly to the
the necessaries
to
a
The fundamental fact is that the
price
.
comes
of
7,?.,/.
>.7 7V;>some responsi¬
bility for the acceleration of price
rises attending excessive wage in¬
creases, their actions, too, reflect
argely...the result of the underying
inflation rather than its
prime cause.
• 7 :"
-•
7-.'
system only the
While that may
beneficiaries
economy,; not. the prime
in the higher prices at¬
While labor has
few; special luxury
products, it certainly is not true
when
,
desire
product most intensively will
the higher price. Those whose
are less intense
will fail to
the
are
market
under conditions where
iSll
123.5
the
for
record
price is
impartial,
who
persons
made it possible
■
conditions
the(
.
them to receive record prices and
levels of farm incomes.
It
ing the 20's about 40% above the
If
-'J
these
divider available
Those
true
off the buyers; with the least in+
sistent demands/ Declining prices
205.1
products.,
and
Metals
leathar„__..;
146.4
138 5
^
Hides
-
'
129.5?'
"192.3
127.7
Foods
•
a'4
8.4
to
plies*.
ply of goods:
plateau dur¬
a
ment this time—and I
+ 13.4
192.1
( 1727s
■
*
1
to
1479
food
--,■
1
1939
261.4- '!;V 103:9
„
Nonagricultural
Average,
Yj
—-
Semi-manufactuied
13 0 n
:
';
•
cV). May, 1920} Jan., 1948*
145.5
114.8
Raw
materials
Finished
products
1Q9
Jan.. 19481
'
115.9
30.8*
Increase—
on
of
adopted.
for
have
*
not fully
are
responsible
which
prewar level.
be
'
wholesale prices
,v.. y i$26=ioo •?
■
168.8
,
175.9;.-* i
-
Jan.; 1948
185:0
'
cases,
to
1920
I4a.4 r-. ;
S
*:? ; -,'120.3 .':>v
Miscellaneous
1914
June, IS^U
1920
<IUIW,
—•
to
to
•
67.7
-i>
Percentage
Change, i
1939
:
tp
■
v. -■ ;■
June- l920^Jan,r 1948 June,
Food
.
'
prices remained
three
be
objective,
an
deviee
so
recipients,
for
all
will
rich will obtain the available
sup¬
rowing which in turn feeds the
prevailing
inflation.
Wholesale
unrealistic
Average,' ■■■■:•■!/->.r
need
a
job,
that under such
business firms have
had a higher cost of
living. De¬
preciation .reserves
based
upon
original cost, are proving to be
inadequate to replace plant and
has created
its
is well to remember that
Pensioners
some
Similarly, farmers
product as
they would be willing to buy at
Sometimes it is said
Similarly,
In
order
lower prices.
workers, etc., have been in
;his general category. One effect
s a growing volume of resistance
by these groups to higher prices.
equipment.
do
merely
be affected.
prices.
or
influ¬
in
obtain as much of the
collar
be
.
■^—Percentage Increase—
do
special
needs
whose incomes do riot increase
as
exercised
to
Large price increases cut the pur¬
chasing power of those groups
rapidly
(3)
be
alternatives
and price relationships are
significantly altered in short pe¬
riods of time, the flow of goods
and services tends to
or
may
supplies. As we saw in
1946, when price is not permitted
different
at
have
made
possible substantial
price increases. And prices have
accordingly been raised for many
products.
to obtain
rates
and other fixed income
Additional support for this
statement is evident if.,we take
during
as
has
rise
priorities,
ence
pay
government employees, white
way/
?
increases,
wage
were
were
probable that
agricul¬
there
82.2
compared
prevailing
Of course, it must
war.
prewar
tion has
didn't
have them today.
98.7
152.4
prices
remembered
the
.
we
147.6
relationship
tionships
.
we
the
before the
the recent
I
disparity
between these
with
5 months.
After World War
have support prices
;
wide divergence between
a
wide
a
spending for World
including war debts, was
In 1943, 1944
1945, we spent more than that
pleted.
'155.5
.
in World War
I,
every
J
prices have risen 155%, while the
increase for other products has
been only 80%.
In other words,
less than $3*5 billion.
and
205.1
>
both groups of prices—farm prices
have more than tripled, and food
considerably
amount
.
127.7
nessed
de¬
was smaller in World War
than during the recent conflict.
The magnitude of the inflation
in World War I was
War
138.5
non-food
to']
114.8 '/o S
The price rise this time has wit¬
I
was
products
Non-farm,
mands
smaller than it
II. Our total
1939
Jan.1948
145.5'£>
Non-farm
economy and hence
of
i._
Foods
this post¬
earlier ones.
magnitude of the change¬
magnitude
c.ommodities
Farm
distinctions
the
significantly
k;;'
,
prices
standing ip line, or
served, (2) some
system of rationing, allocation
:
Effects of High Prices
When
(.1)
ways:
sibilityyfor what happens in their
(badiwick. Large demands
own.
first come, first
that high position
relation¬
May 1920
AH
must be made between
war
not
was
different.
i aiid'H
the
to
price rises for farm and non-farm
decline, namely about 65 to 70%.
Differences—Post-World Wars
time
.
between
major groups of
prices at the postwar peaks. The
magnitude of the World War I
they
as
con¬
ship
consumers'
after the post-World
were
tention.
of
the
at
to
.
has been smaller than
war;
threatens
.
they had been before World War
I. The rise in consumers'
prices
since 1939
and
been
Thursday, April 1, 1948
who gets how much, then supplies
will. be.divided-in one.df three
has been
tinue to he a major difference be¬
by food and farm prices.
tween the two periods.
However,
individual
items
in
In other words, the qualitative other
groups have also had sub¬
arid quantitative differences
be¬ stantial increases (e.g., lumber).
tween World Wars I and II have
At the other extreme, the smallest
been so significant as to explain rises in both periods were found
the differences
in
behavior
of
in the prices of metal and metal
prices in both periods. --.
i products —; an area recently sub^
There is another aspect of the ject to much public discussion and
two postwar price increases which
official investigations because of
is
of considerable importance— a relatively minor .adjustment in
although it has received little at¬ prices.
; >"?yy;!y.
the post-1920 decline had
been completed, consumers' prices
remained about 70% higher than
was
CHRONICLE
held
When
it
FINANCIAL
Prices After Two Wars
J
than
&
past postwar inflations, these
.de¬
clines have not been gradual, but
distortions in our? economy.?
drastic. Ordinarily, there.is no wsy,
Although" 'hinsi-nessmeh
are
Although" businessmen are not of. making sure that we will have.
responsible for the foregoing ac-1"just a little
deflation."sHowever^
tions, they conriot escape respon- there is one major factor in the
Volume
167
at this
picture
gests that if
brakes,
any
been kept
I
refer
and
sug¬
had
put on the
deflation would have
the
large demand for
of the heavy goods
long as we can
So
sell
road
THE COMMERCIAL .&
within moderate limits.
to
industries.
still
time which
we
the products
heavy
Number 4686
the
all
electrical
automobile?,
equipment, rail¬
equipment, oil equipment
farm implements that can be
the
^produced,
decline
probability
the
of
1920-21
of
a
variety
would appear to be remote.
Finally, we cannot ignore
heavy black clouds- on
If
embark
we
sev¬
the
ahead.
As
which
role
will
in
play
the
we
has
trices
meant
steel,
have seen,
These
products.
in
level.
the price
the
not
are
a
in¬
precipitous decline
A large grain
here and abroad, could
more
marketable
1945.
present market value of
ments.
loans
It
is
tember,
be
1929,
remembered
billion
in
averaged
and
$6*/2
billion for the year.
have
So far the
good,
been
crop
For most non-food
'
;
.
products
Accordingly,
find
ex¬
it
sound
any
difficult
is
to
the
be
further and that
new
be
may
deferred
inflationary
into
set
still
motion.
The magnitude of the third round
increases and the extent to
wage
which
they
accompanied
are
by
strikes and the bounty of Mother
in
Nature
the 4948
harvest
,;are
even
the soundest of
cor¬
in
break
be'significant. Tv/4
chasers.
3.7.' V': v
-
This
ordinary
since
is
obvious
to-any
particularly
observer
the
peak
$66
representing substantially the eco¬
nomic supremacy of the world, is
beyond all reason and understand¬
ing.
.
The
the
edict by which
was raised to 75%
summary
"margin"
the N. Y. Stock
Exchange,
listed
of the
prices. The outlook for porations, or to find any beneficial
effect this restriction of credit had
food prices depends upon the size
on
our economy.
It does appear
of
crops
here and abroad.
In
that these high and unusual "mar¬
summary, it appears that the de¬
gins" accelerated inflationary ten¬
lay in the development of a sharp
dencies by banning equity financ¬
postwar price; decline has been
due to factors which continue to ing and "panning" would-be pur¬
will
stock of
some
securities,
purchase
deflation
impending
an
marketable
a
indiscriminately
cept possibly some textiles, there
is little evidence of
billions
Why
^against
$17
billion, while the average loaned
for that year ($1 billion) on such
for
reason
high "margins"
imposed on the
pledges.
July 5, 1945, on a rough com¬
putation, eliminated 25% of the
$70 billion market v^lue (averaged
for the year) of stocks listed on
Inflationary
we
all
on
Requirement
Margin
it
but
will be several months before
know the actual results.
High
of
discrimination
this
Sep¬
expanded armaments program, it
probable that the usual postwar
forces
of the
market in
of
stocks
was
or
less than
1 Vz %
their
averaged market value.
Similarly, on Jan. 21, 1946 raising
the margin to 100%, on the record
of 1945 did not change these fig¬
ures
materially, except that $35
billion of buying power was elim¬
These
inated.
and
the
are
startling figures
serious
cast
must
judgment
wisdom,
doubt
on
abil¬
and
stock,
for the stockholder figured that
(Continued from page 6)
optimism of the company's pros¬
price-times-earnings
ratios,
of quent rise in wages and resulting
stocks are low (the lowest since uncontrollable inflation! And why pect prevailed and the new money
would be ,used for increased pro¬
1923) and their price comparison should the Board dogmatically
tcb commodities, based on a 50c or impose, without any consultation duction, expansion; and the reduc¬
60c
of
restored.
present
mental
formerly,
stockholders
stock
dollar, is also low, and their
market price makes no
allowance for present replacement
valuation of plant and machinery.
A comparison of present Dow
Jones
Industrial
with
wheat
Stock Averages
prices
shows
in
the
stock
average a high of 159 and
low of 121 in 1939 against about
a
173
In wheat, it was $1.12
today.
city,
any
govern¬
orH
bureau
or
an
economic credit restriction, when
the banks are wide open to de¬
cide
basis
on
of
their
judg¬
own
ment how much is to be loaned to
an
individual
bank
Why not let the SEC have
trol
of; "margin"
con¬
requirements
on
$0.62 low in 1939 as
against $3.20 high within a year
appropriate hearings? Why not, as
the writer proposed in 1933 to the
and
Federal
high, and
today approximately a low
of $2.36 which is twice the high
of 1939, against stocks selling 8%
above the highs of 1939.
,
Financing through equities, be¬
ing
investor,
the
solve
attractive basis to the
should, therefore, help
an
on
fundamental
struct
Trade
Commission, con¬
graduated scale of re¬
a
strictions
able
based
on
a
certain
of
ciation.
appreciation*
;
problem
additional equity cap¬ graduated
thus enable production might be.
A
bar
is
measure
ital
On
through increased plant facilities
tp control inflation. Why, if we
a partial but important situ¬
have
ation
to help reduce and balance
inflationary trend, why can't
our
use
we
it?
1
*.
.
-
:
*
be¬
depre¬
or
no
of securing
and
relation
tween the rate of activity and de¬
gree
Since the period
offering of rights for
subscription
to
new
stock has
caused
guide,
of
July
5,
a
control
1945
the
"margin" to 75% and
it
on
Jan. 21,
from
10
to
20
over
100
to around 70.
To¬
day, the holders of the rights to
buy new stock are not imbued
with sufficient
optimism to make
this operation of securing capital
an
easy one, or a profitable one
as it would be if the buyer were
not restricted in his credit oppor¬
tunities.
The
same
on a
dividend
ap¬
lower price level
raises the cost of securing capital
as
much
as
20% from
5% to 6%
a
basis.* That is not sound business
almost three years for the
absurdity of this regulation to re¬
That
thus
count
that
means
an
ac¬
under
margined is
totally frozen and an undesirable
security must be retained even
though it would result in further
diminishing the margin by declin¬
ing in market value, and even be¬
coming worthless. The broker or
his customers thus cannot relieve
themselves from ill advised
chases
unchanged.
unfortunate
like
to
This
Dostoievsky's
the
"Crime
and
The rule has lately
abrogated and is
remain
to
investor must appear
Punishment!"
been
pur¬
if the credit balance
even
remains
in
effect
no
longer
after
March
31, 1948. Why, we may ask, did it
itself to the Federal Reserve
veal
Board?
Further it must be remembered
that the present outstanding issues
of some $66 billion market value
of stocks on the N. Y. Stock Ex-
change developed
and
With
a
costs
(in
labor
(over
in
national
y
•r"
tremen¬
depreciation), volume
100%
:
"margin"
a
on
of less than 50%.
dous increase of
'•
I
,
in
products),
I
national income (over 100%), and
in necessitated expansion, a much
r.
'
(■
larger cash capital would be re¬
quired to maintain normally these
t
outstanding issues and such inas industry should obtain
,
creases
by additional equity capital. v To
increase "margins" by 200% ne¬
cessitates a still larger amount of
cash capital.
imbalance
This brings about
to
industrial
our
gression that cannot fail to
an
pro¬
be of
permanent
injury to our much
expanding economy.
needed
>The
ible
conclusion
that
tionary
these
anti-infla¬
of .the
pundits
Reserve
Board
irresist¬
seems
same
have
Federal
elected
-
to
impose arbitrary conditions that
hamper and impair financing with*
equity capital, vitally needed for fl¬
our
effective
functioning in this
•
crucial world period. Their action ;
could be compared with a decision,
j
the
of
"elders"
suffering from
rate, to require
of
all
in
a
a
community
.
declining birth
strict continence
¬
males!
The right to buy shares of rep¬
:
resentative enterprises on reason- 1
able credit facilities is fundamen¬
tal to the continued
American
System
success
of
free
of the
enter¬
prise and should not be abrogated
by
shot
would
it
not
economic
From
edicts.
gun
foregoing,
would
require
seem
a
authority
the
that 14
financial
or
or
an
even
"ornithologist" to conclude, "who
killed
Cock
Robin?",
v
v
;
and adds to cost of product indi¬
rectly through a pinching
creasing of surplus.
/
;
,
or
-;
de¬
The Reach for Power
0
Our capitalistic system requires
Federal Reserve Board raised the
1946
break
a
points and in 1946 the right to buy
Montgomery Ward stock declined
Tending on market¬
proximately
securities, which should be
on
new
the
costs/
company.
where decisions could be based
in
to
mentioned
from
or
rise
a
given
subscribe to
to
caused
tion, of
state
agency
rights
need
ity of the Federal Reserve Board.
;. Again the Board fails to show
Consideration for maintaining free
rhsrkets, in their rule of July 16*
1945 (11 days after raising "margins" .' to 75%) prohibiting the
exchange of any security* in an
under margined account for an¬
other of equal market value, un¬
less in effect the 75% ."margin" is
1946;
.
to
$8^
were
than offset these current pressures
for higher prices.
(1445)-1 29
between 1939 and 1944 and $1 bil¬
lion in each of the years 1944 and
meant
gredients for
crop,
a
months
CHRONICLE
In
1946
and
the meat
1947, these
higher meat loans were. $357 million and $300
million
and the coal strike has
respectively. Today, there
a
smaller production of are $250 million loaned-on stocks
and
bonds,
other than Govern¬
automobiles,
and
other
strike
an
upon
im
.
factors
significant
portents
eral
horizon.
other
FINANCIAL
money
from
equity *
Would-be 'purchasers
financing.
should
be
;S:U; ■?
V-;
>
l';It
"I" (Continued from
page 3)
then urged, for the purposes of the record, that
former increase was made just be¬ allowed to pay a half of the pur¬ the members who were
sitting indicate what negotiations
fore the end of the war, at which chase price and remain indebted
had taken place in which the SEC and NASD participated,
time a recession, accompanied with for the other half, which is a fully
some
r<
eight million unemployed, secured credit. Certainly a pro¬ out of which the "5% philosophy" grew.;
was
Counsel for these securities dealers pointed out that in
being
predicted I.for'; the tection of 100% for his indebted¬
Spring of 1946 by governmental ness,; should.be permitted, .d;, •
their; opinion, if the SEC participated in any conferences or
experts.: The latter increase was fcr'T'O
Mathematical. Miscalculation? > had'anything to do; with creation of the "5% yardstick" then
based on the following statement:
"The reason for so drastic (in¬
In fact, the restriction keems so the'Commission sHbuld disqualify itself from sitting in judg¬
crease
to
100%) a requirement unfounded and illogical that the ment on the price spread "philosophy" of its own creation.
was
that
inflationary pressures writer believes it possible to be
The members of the Commission remained strangely
were very strong and any growth
the result of a mathematical mis¬
silent. They refused to go on record. The publi<? has never
whatever in stock market credits calculation which is set forth for
since learned jusf what hand the Commission had in the f
would increase them."
what it may be worth. "Margin" is
On Feb. 1, 1947, the "margin" a poor term and the writer has creation of The "5% philosophy."
T ;
/
\
was
It is
reduced to 75% where it is purposely ? accentuated it.
V.We had hoped to flush the Commission out and get a
today. Accordingly, a 100% "mar¬ lacking irr all othferr<?tcdit opera¬ statement on the
subject but our editorial efforts were in:
tion of mortgages,
was
raised
to
100%.
The
*
was
,
The Increased "Margins" Imposed
:By the Federal Reserve. Board
-
the villian of
'Here then, enters
the play! On Fdfc 5, 1945, the Fed¬
eral Reserve Board
directed in
"margins" be increased to
the authority of the act
effect
50%
on
with the re¬
determining
charging the Board
sponsibility
of
"whether undue
use
is being made
of bank credit for the speculative
carrying of or trading in securi¬
ties, real estate or commodities."
The
"undue
term
in
use"
would
language ab¬
normal, harmful or unusual. To
give the Board the autocratic
despotic right to use their judg¬
mean
ment
as
ordinary
to what extent credit may
foe used for
a
basic need and im-
plemental means of production
and expansion
seems
going far
afield<,. Such power would appear
to
be
device
for
restricting
seemingly
punitive
purposes.
Why
not
curb
life
and
fire V insurance
companies
,
credit'
fropi
a
for
loaning
50%.
60%
or
on
gin" was held through the entire
deflationary period in stocks for
fear that "any growth in stock
market credit
would increase in¬
flationary
pressures."
Well, At
looks as though business with the
Government's blessing on wage
increases proceeded
merrily on its
inflationary ; course,
while
the
stock
market
continued just as
merrily on its deflationary course,
branded as "inflationary'.' by the
anti-inflationary pundits of the
Federal Reserve Board..
ly, the imposition of
a
Certain¬
.100% cash
pledges,' col¬
lateral, etc.
The so-called 50%
"margin" means that for a $10
thousand purchase there shall be
$5 thousand unimpaired market
value for the $5 thousand ad¬
vanced
by the
broker or. lender
the purchaser; accordingly the
stock must decline to around 50%
of the purchase
the loan. T; -v'1
In
20%; "margin" was the
practice in 1929, it meant that the
amount advanced by the broker
was
four times the amount put
up by the purchaser.: If you raise
a
50% margin by 50% and thus
make it 75% r(as I assume the
our
conclusion
price to endanger
'ATT- ■'
When
This they, did ipot do., ; ;V. • .
opinion, from their silence, only
to say so.
to
vatye of real estate which means requirement must have had a
only ,50% .or 40%; m a r g i n s large share in the "bust" of 1946
respectively?; Why not have re¬ during which period this veritable
stricted speculation in commodi¬ "prohibition" prevailed. Certainly Federal Reserve Board figured)
ties by imposing 50%-60% and any requirement similar in de¬ you do not raise it 50%, you mul¬
even
75% "margins" instead of gree of severity applied to loans, tiply the amount required as mar¬
allowing them a "margin" of only reserves, borrowing could have gin by three fold; in other words,
20■%' raised lately to 33%%, the produced a panic! History is not a 50% margin or pledge is equal
mute as to controversies of much to the amount loaned—$5,000 to
maximum ever imposed? V
This liberality (which could not less stringent requirements bring¬ $5,000 is one to one.
On a 75%
have a political motivation?) en¬ ing on the 1929 crash.
amount is three
During "margin" the
abled i extended
speculators
to these radical restrictions on the times the amount loaned which is
w
If the SEC had nothing to do with the creation of the
"5% spread philosophy," it would have been a simple thing
fori the members of the; Commission who were then sitting;
In this
be drawn.
can
one
reasonable
;v.
instance, the body that preaches disclosure chose
concealment
as
its weapon.
*
The emergence
in
a
program
of the SEC and the NASD as doctrinaires
of price control through joint activity, con¬
barnacles of the securities industry,
tinues to be one of the
In
a
,
)
field wherein law, custom and usage have created a
great measure of uniformity in practice and certainty in
operation, the Commission has reared the head of uncertainty :
and disturbance and has placed broker-dealers in a position
of
peril during the course of their daily activities.
We like
WE
laws and doctrines established by the legis¬
by administrative bodies and their satellites.
our
lature and not
SUBSCRIBE TO
THE
CONCEPT
OF
GOVERN¬
buying power of the; stocks of one to three or, in the above $10 MENT BY LAW AND NOT BY MEN.
1
)
companies upon which our might thousand transaction, $7500 paid
Our adherence continues to be to the system of free
and power depend what serious by
the .purchaser to $2500 ad¬
enterprise
upon which our government was founded.
; \; '
claim this furious speculation and extension or abuses of credit fa¬ vanced by the broker.
There is
;
- We abhor the
tendency of state participation in and con¬
no
transaction Of pledge, collat¬
price rise was essential to our cilities developed?
< " /
financial ox economic well being!
Loans on stocks, bonds (includ¬ eral, loan or mortgage that re¬ trol of business.
-r
/■ O
'
'
.;;;;;
On the contrary, it probably was ing Government) "and commodi¬ quires a 300%'protection to the
We paiilcularly deprecate the fostering by administra¬
ties
amount
responsible, in largest part, for the
loaned, particularly of a
averaged
.annually
from
tive bodies of new doctrines in the securities industry.
rise in the cost of living, conse¬ about $400 million to $600 million pledge that
, is
the most readily
raise
the
"staff
of life"
to
prices
unheard of in the history of the
country.
Surely no
one. could
.
.
30
THE COMMERCIAL
(1446)
FINANCIAL
&
.without. But
As We See It
tion and
unemployment, and to convert the untoward
business situation into prosperity for more than a half dozen
years. Before the end of 1941 the output of goods was at a
i
level, and between the draft and the demand, for
sion which followed the first world
which
in
some
minds
at
war
—
least appears
1920 break with that of 1929.
a
no
ditions
exist
in
free
a
Neither
state.
their
production
J enter the picture in
;
our own
economic welfare
our
of the ind.vidual workman.
The
tiens
nor
>
particular case—advances
Relief and
At any rate a
Such
gifts
Recovery Flan
surprising
.
.
itself
of
the
Labor
showed
leaders
labor
income
of
considered
being projected under the European
as are
National
Rela-
-
ten-
-
a
dency to support the contentions.
or
Prosperity
old
Board
that
practi¬
cally any matter that might even"
remotely affect the employment,
recollection
to confuse the
employment can be
comprehend almost
to
anything that might indirectly and
ultimately affect the employment
iota.
one
of
stretched
| their employment—except in conquest, which does not
employe can be
being within the,
an
as
collective bargaining, and
that employers can be le-
of
area
■■
slightly different category, but they hence
gaily required to bargain about it. /
certainly are not to be grouped with articles we produce
The desire of some union leadto exchange for other goods we desire from abroad.
By ers to stretch the scope of collec-.
raising wheat and giving it to undernourished peoples in tive bargaining must be appraised
Europe, we may well satisfy an innate desire to do good; in terms of the ultimate limits to I
which that process may take US. .;
we may, if we produce more than otherwise would be the
One of the things I got out of.
case without reducing production elsewhere, find that our
calculus when I studied engineer¬
generosity has not cost us very much, but the direct,, imme¬ ing was the principal of carrying
diate economic benefit we can expect from it is limited, to ideas to theirj limits of zero arid
be sdre. It is one thing to be 'feverishly active; it may be infinity, and looking at them un- ;
der each of these circumstances.
quite another to get ahead.
r
1
.
I
" If we consider the ultimate re-
number of people have long ago come to the conclusion
that another depression must
producing articles which have
only a necessary evil, that they are really useful only in
a negative sense, that is necessary in order to continue
to
workers, unemployment had begun to give signs of complete
disappearance.
of the panip and depres-
ing defined. The reference in thehour's of employment,",*
working conditions and oiner con¬
Act to wages,
divert much of our atten¬
usefulness except in conducting modern warfare, we still
must remember that the production of these things is
get rid of
There is also the memory
effort to
our
Thursday, April 1, 1948'
if we, for the sake of the argument,
even
concede that it is necessary to
(Continued from first page)
record
CHRONICLE
follow World War II in
are
in
a
.
the normal
course
t
of events." With many it is, indeed,
long past due. So much has at
one
time
or
another been
said about this inevitable recession that its appearance
at
time
some
in the
near
future has for
a
good while
by the great rank and file, come to be taken
almost for granted. This line of reasoning obviously
gave rise to the need of something different from the
last time in order to break the supposed line of cause J
past,
and effect.
v
•
,
Spread of Foolish Notions
Then, of
course,
the decade and
f
These
simple, homely truths, but they
often being overlooked.
-
half since the New
a
are
.
often
than
we come out
"Unfinished Business'
their
not,
ish interests
tablish
strict
they frequently were exceptionally capable
to spreading queer notions among the vast
masses of the people. Much of what is now
being said about
what is required to prevent the appearance of a business
depression would never pass muster among those conversant
with the elementary principles of economics — if the sor¬
it
But however all this may
tance
I
came
cerer's wand had not been waved
that
certain
over
re¬
does
,
fined their
anti-union
what
for
I
ployers
am
have
to
seem
important.
■
.
surd I will be accused ol
am
not
been verj
Unions generally con¬
negotiations with em¬
to
the
issue
narrow
o:
this evening, but 1 wages, working hours and other
simply pointing out specific conditions of employment
che problem stripped of the emo¬ Many craft un ion agreements In
tional and political confusion that pre-National Labor Relations Aci
times were practically one-page
usually surrounds it. The simple
affairs, simply stating what the
fact
is
that
monopoly unions
wage rate was and
the rate for
through industry-wide bargaining
*.; < •
.•
exercise power over the industrial overtime.
fife of the nation.
No minority
With the rise of industrial un¬
group, not elected by the people ionism, under the National Labor
Relations Act, a hew concept; of
and not responsible to the people,
saying
here
impor¬
in these
I
am
,
principles involved
matters and these lines of reasoning be understood and
evaluated. Quite conceivably, a period of readjustment
was, and perhaps still is in order. The Lord knows there
are factors enough which
needed to be brought back
(
allowed
be
Can
to
collective bargaining has appeared
For example;
Several years
such
exercise
power; The problem we face with
into proper
similar
is
unions
to
the
with the union lead-'
but w;th no legal or
public responsibility and with no
private
employment except as
they
permit.
may
conditions
agement
without
Under
freedom
the
interference
t
.
these '
of
function
to
man¬
property -
in
making\
its
every-day decisions will her;
gradually restricted.
The union *
leaders—particularly where they !■
have
industry-wide powef—-will •
deciding voice in all;
managerial decisions or at least'
have
the
exercise
will
veto
a
that'
power
will
stop progress.
Competit;on
will "be atified and1 progress in, the
t
;
improvement of industrial proc- '
which reduce the cost and
eSses
price of tb e goods produced by
industry will be halted.
-
Should Define Collective
ago
the President of the CIO
proposec
eternal
>
,
fieally^c^
the country,
Before the National Labor Re¬
lations Act was passed, this issux
unions to es¬
monopoly control and
am not.
some
basic
use
coinpetitidh in their indus*
being
their heads.
be, it is of
to
tries.
master
when
ers
(Continued from page 2)
like their master, ignorant of
economic principles, and when it came to plain everyday
matters of business, devoid of common sense. But again like
more
were
this
tendency to stretch
collective bargaining to com prehend any subject that, a
union
leader* may desire to bargain off,
Deal
appeared upon the scene has spread a great deal of
popular misunderstanding about the nature of the economic
system and about what makes the wheels of industry whirl.
The followers of Mr. Roosevelt, the high priest of this order,
of
suit
are now
Bargaining
relations with others. There is, of course,
a plan for the
Only by defining arid restricting":
one we face with government itreorganization o*
American industry on the basis collective bargaining to its proper
no
gainsaying that huge gifts to foreign peoples, parSelf.
of "industrial councils" to be es¬
sphere can we hope to save what.
No intelligent person will argue
j ticularly if these gifts are financed in such a way that
tablished in each business, and ir we have come to know as our,
they do not diminish consumption in this country or I that we should not have govern¬ each industry.
These
council* American system and keep it from't
ment; The question is how can
were
correspondingly enlarge production, may serve to defer
to consist of union repre¬ evolving into an'alien form; im-;
we limit and
restrict the use of
required readjustments and postpone the day' when K government power by the men to sentatives, representatives of man¬ ported from east of the • Rhine.'
agement and government ^ offi¬ Until this is done, the border area ;
conditions are set aright again. Naturally the gearing
whom it is given so that they
cials,
who,
collectively, i; would of collective bargaining will be
cannot
use
it
to
oL the economy to a vast output of war goods again
destroy the make
a
constant battleground between |
all of the key decisions with
fundamental rights of other citi¬
would require many adjustments in its own right, but
employers and unions, as the un- ;
respect to industry's operations
zens.
The problem remains one
ions
This would be equivalent to put¬
continuously attempt to press
would not very likely cause or even permit the develop¬
-f the most important pieces of
ting union and government exec¬ the boundary- farther and. farther
ment of widespread Unemployment and idleness — at
p "Unfinished business'' facing the utives on the boards of directors into the area of managerial func¬
least for a period of time.
country.
It is becoming increas¬
>
'
\
for e&ch business, and then setting tions.
'
*
!
ingly clear that such labor mo¬
The law will be principally re- '
But is Ihis sort of thing really prosperity? /:
May we nopolies, operating with little of up a super-board of directors*
sponsible
for
this
for each
continuing
cPfw
industry, composed o'
regard it as a gain in economic welfare? Is, literally any¬ no regard for the public interest.
flict.
As
*
■
.
.
-
,
thing,
which
as many appear to suppose, which "makes'jobs" and
causes all elements in the
population and most of the
:
restricted in
be
must
a
the-same elements.
practical
.
or
way
The
branches of the economy to
they must be broken up.
Labor-Management Rela¬
This
long as the law is- not
plan is*
very similar to that which many
persons advocated during the late
on
feel
thatV
they are justified
*
their efforts to drive ahead in this
become and remain active, even tions Act of *1947 failed to deal and unlamented N.R.A. It has*
direction. On the other hand, emfeverishly active, a contribution to the economic welfare of effectively with several other im- many features that are ident'caJ
with the Syndicalist set-up of in¬ ployers will be equally determined
the country or of the world? Obviously, some sort of res¬ oortant matters.' One of these is
to resist these efforts to restrict
dustry /under, Italian
Fascism
compulsory unionism. Many of the
ervations must be made here, or else we must
regard those same people who are loudly de¬ Writing more recently on this management's functions at the exwar years when one could have
only a limited quantity of manding anti-discrimination leg- subject, the President of one of pense of progress..
the largest unions in the CIO ex¬
By defining, this area sharply
meat to eat, shoes to wear, gasoline to travel, and-all the 'station based on race, creed, color
panded
this
concept further F and clearly, Congress could elimior national origin are still advo¬
rest, examples of great prosperity. Of course, they were
nate many issues of potential disthe planning and control * of aP
cating and supporting discrimina¬
industrial
not; of course, the imbalances which developed in those
action
through such pute. This would also relieve inin employment based on uri-
tion
years are what we all fear will at one time or another in
the future force a major recession in the rate of business
activity.
What Business Is
Supposed to Do
*
If the economic system of
any country
:
is to be regarded
as having one and
only one function, namely that of pro¬
viding the peoples of that country with the greatest possible
amount of goods and services of the sort
they most want
and in doing so require the least amount of work and incon¬
;'on
membership.
they
are
tion
of
As
an
example,
demanding the elimina¬
the
poll tax while advo¬
cating compulsory unionism Which
amounts to an industrial poll tax
on
the more basic right to work
and earn a
living.It is worth
remembering that monopoly un¬
ion power is
largely based
and
on
enforced by
joint industrial councils.
The Labor Management
,
Con¬
in
reach
agreement with the rep¬
an
resentatives
ion
of
federations
attempted
the
as
principal
to
the
to
un¬
area
in
which
Another
it is necessary for the industry of any
people to do that which is necessary to protect it from
outside attack. That is to say if the nation is
course,
threatened,
its industry must provide the sinews of modern
which are not only
war—
exceedingly expensive but wholly
necessary.
'
.
which
Opinions
we
are
may
well differ
at the moment
as
to the degree
being threatened from
piece
of
"unfinished
with
unions
basic conflict
on
this matter that
business" is the failure of the new
cannot
Ibbor
bargaining; Furthermore, it is
area
law
and
gaining.
to
pronerlv define
scope
This
the
of collective bar-,
failure is
continuing conflict
sions, insurance, paid
m
riods and various
resulting
over
pen¬
lunch^
pe¬
o.ther payments
be
resolved
by
.
issue
which
cannot
be
collective
an
resolved
satisfactorily under the provisions
of the new law. because
nowhere
within that Act is the subiect mat¬
ter
of
collective
bargaining ac¬
that have
nothing ; to
do
whh curately delineated and the limits
wages paid for work performed. ..of the area of collective bargain¬
,
that Act
of
pose
plish
.
and
to
was
revolutionary
a
nature
system.
consultation
subject to union veto. The
Rela-
Labor
Act, that the aim; and
tions
the
National
the
without
.
bring lasting economic benefits.
under
American
compulsory unionism. union
leaders were unwilling to
Thus, monopoly union power and make
any agreement in this matvenience — if this is the real function of our economic compulsory
unionism' are' tied
itei4;7However, ihese sessions
together.
served one very useful purpose.
system,, we must be very cautious in supposing that many
7
Scope of Collective Bargaining; Thev brought out sharply and
of the things being talked about
today can in the nature of
Not' Defined
7V'4 forcibly the fact that there is a
the case
Of
fear/ based:©#;,its~ experience
ent
management should make
decisions on its own responsibility
arid not
,
.
:
'
;
;
;
;
*'
dustrial management of its ptes-;
ference
1945
t
this issue the unions will
clear
economic
and
accom-
of
i:
.
the
political
/
**
"
.
pur-;
changq in
structure
v
*
Unions and Welfare Plan#
insurance and welfare
be, and usually are, of
great benefit to-employes and the
-
Group
plans
can*
movement/in this/regard, which
was-
initiated
ployers
be
be
of
by
decades
restricted.
any
for the
agp.
Nor
should
should
upon
benifit of
not
olans
the'r members.
''But
participation- by employes
in such plans, whether sponsored
employers
be
entirely
or
unions,
voluntary and
*
there I
the 'right
establish such
by
-
/
progressive em¬
limitation
unions to
,
v.
/
x
,
,
-
should !
not
a
»
condition
of
erpnWment.. • Since
,
the needs
of
individual employes ;
Volume
Number 4686
167
t
•in these matters vary widely, they
should
be
free
to
participate or
not, in e.ther employer-spoi.sorea
>^MMhrtCiAL
ill
I am urging is that no employer*
should-be requxred by law to e-xiena
the
area
collective
ot
bar¬
;:
or union-spcniored plans, as they gaining beyond that wmcn I have
rhay personally-desire, without in ouumed, and that no union, op¬
-any way affecting their status as erating under the protection of
me law,
employes. 1
r
- ■
.
snould be permitted! to
V ,' • - •
•v
Furthermore, the technical lorce him to do so.
The
current
coal strike/which
problems involved in the formula tion and adminstration of these apparently is over tne questional
plans would be very difficult to pensions, forcibly illustrates^ my
resolve in collective barga.ning. point. The coal strike xS already
Such employe benefit plans are beginning to cripple the industrial
-r
-
,
-
;
•
v
involved
•
•
in
of state
maze
very
a
complicated
lished
on
much
•
:
a
federal
duration
longer
laws.
estab-
than
the
agreement, and there¬
fore it is impractical to include
them in union agreements as such
"
;
Wage
involved
as
& Hour Law is also
contributions to such
plans in certain cases must be ineluded
v
•
*
as wages
to
ject
i
X:
and become sub-
overtime
difficult problems in their
their
joint administration will ereequally difficult and far more
issues.;
Every
claim
ate
numerous
under such
;
> tential
a
basis
plan will be the poof a labor dispute,
the
standard,
every-day
cases
which arise under seniority and
i
./'
wage
agreements.
these circumstances,
"..In
it is
sufficiently difficult for employers and unions, acting, independ'
ently, to establish sound benefit
r plans on their own responsibility,
*} It will be much more difficult to
deal with these problems jointly
;
in collective bargaining.
In addition, when a large em-
.
i ployer does business with a numt ber of different unions, it will be
impossible to have uniform benefit plans for all of his employes
without
regard
to their
union
status or affiliation, if these plans
are
to be made the subject of
collective bargaining with each
of the various unions involved.
pi Thus; the inclusion df health
,
r
1
-
and welfare plans within
\
1
•
/
>
•
1 -/
\
:
,<
V
labor-management
W
!:
collective
re¬
a
One
is
communist
say
socialist
a
Marxism
to
and
Seizure
Capital
accumulation
tax
general are the de¬
goals to be attained by
Another
piece
of
"unfinished
been dramatically
brought to the American public s
attention by the communist seizure of Czechoslovakia following
the progressive taking over of the
I
As
:
that
This
a
nism
Conflict
between
freedom
and
"unfinished"
is
,,
.
world.
finished
of
piece
r
w
long
it remains
as
there
business'
basis
sound
no
the
economic force to
require employers to bargain col\-V lectively'-iovef such plans,w or- to
make participation in any such
plans a condition of employment
for employes.
This would leave
both employers and unions free
\o develop sound plans independt;:'
ently of each other, without com> t
plicating collective bargaining on
/<
the ordinary issues of wages and
hours of employment still further.
•
•
to attempt by
•
-
;
•
•
Accordingly, the law should be
only rates
amended to specify that
"
of employment, and
the circumstances and conditions
under which employes
actually
-
of pay, hours
: *
'
•
1
#
,; a
,
taxes.-
might
most -Americans
budgetary
to
realize
that
creasing threat to the free peoples
of tne world. / During tne war
many
people talked as thougn
Russian communism, ; based . on
Marxist philosophy, and Ameri
canism, based on individual rights,
were much the same and maintained that there was no essert
tial conflict between therm It is
a distinct shock to many Ameri
cans
to realize that individua
human rights do not and canno
exist under the Russian systeih
The two systems are as different
as night and day. The ideological
and- practical conflict /between
slave states and free societies is f
now becoming clearer. The magnitude of the gulf between the
idealism as
expressed
by the
propaganda of professional communis ts and the realism of their
action when they have the power
.
on a
nation
is becoming equally clear.
Corn-
munist
actions
speak
so
not
payment
be
able
-
be
can
world
for
u
peace.
develop
,
a
for making' a
the national debt, if
on
taxation.
would
we
not
>,
pressnt scale
latter
group
our
The
that
admit
a
revised
tax
system might facilitate the de¬
velopment of a budgetary surplus?
-;My position is that the efficacy
present.
tion
is
become
the
their
of
level
War
continued.
quence
As
a
ily affected than it
taxaconse-
in
motivation
nomic matters is much
eco-
more
eas-
during the
they were buoyed up
considerably by their patriotism,
was
when
war
While
taxes: could
maintained at
a
have
been
higher level dur-
counter-in¬
ing the conflict the less efficient
depends on
phase of the inflationary
cycle we happen to be passing
through. One phase of this cycle,
the war period, is over. The sec¬
ond phase may be referred to as
part of our planning for the war
relates itself to the methods of
of tax reduction
fluence
to
as
a
inflation
what
Government/ This has turned out
The
to be rather fateful.
made
debt
war
additional
heavy
top of the deficit finanethe immediate postwar, or transi¬
ing
of
the
years
1931
to
1940.
tion period in which we are now'
moving along.'. This pha^se might Moreover/too much reliance was
also Bp referred tolas the-"After¬ placed on* the credit resources of
math" of the war. This in turn we the banking system. This method
was
adopted instead of offering
expect to be followed by a third
a
higher rate of interest which
phase which we hope will be a
would have attracted the savings
more or less normal
period dur¬
of the people at large. The artifL
ing which the present problem of
cially low rate of interest which
inflation will be finally solved.
was used in tapping the credit of
I wish to emphasize that during
our
commercial banking system,
the wartime part of the inflation¬
brought in its train a series of
ary
cycle,: severe taxation was
maladjustments in public as well
quite appropriate but that during as
private finance.'; A gap was
the transition period, where we
thereby
created
between
th6
are now moving, these high scale
money rate of interest
and the
taxes have no longer any virtue in
up
Presidents
or
estimates
to
were
give
us
overau picture of the status of
business at the beginning of 1948.
One note was fairly common to a
large number of these analyses of
business
other
One
the
prbspects.
acute
need
It
of
ex¬
more
an
on
industrial
business
units.
two of the writers stressed
or
practical
non-existence
of
capital markets from which >new
risk
capital could be obtained
for
is
the
expansion
of
business.
It
generally recognized that satis-
faction for this need of
capital is
now
sought
through new bank
Large banks have recently
loans.
increased
loans.
high
sharply
The
result
taxes
this
is
in
are
type of
evident; that
this
instance
encouraging debt while they
tard equity financings
v
When
the
re-
,
More Savings Required
borrowing adopted by the Federal
layer
of
I
of
venture capital and equity invest¬
ments in case of corporations and
People
if
restive
number
a
an
pressed
Inflation Deterrent
surplus
would reduce
we
of
to
that
invest.
and
save
statements
«These
(Continued from first page)
y;;
others ;fear
Still
to
interest
General Managers of larger busi¬
nesses
which were presented in
the
Balkan countries. This has caused
need
for
..
more
sav-
ings and investment at the
pres¬
ent time is
mentioned, the response
is sometimes given that we have
practically full employment
and
therefore
there
is
no
now
outlet
for additional savings and
investments. It should borne in
or
use
mind however that even under the
assumption that all available labor
is now employed there is still one
royal road to promote greater
production and that is to
give the
employed laborers more capital
in the form of additional tools
and
machinery. This requires more
savings and investments, which
will
be made possible
by lowering of taxes. It is hardly necessary
to repeat the fact that the
great
productivity of American labor is
.
against the other, by one part of
the population against another."
: Contrast this with the principle
upon
which our system was
founded as set forth in the]Declaration of Independence:^/ jr«V
"We
saying that the excess profits tax
in vogue at that time was very
much to the point. ..,/<■ .,v
Taxation
truths 'to? be
men are creare
endowed
rights, governments are instituted
among Men, deriving their just
powers from the consent of the
governed", ■
; i. .•
,
the /
re-
quired by law. It should also be
^ '•'/•r^hmended- to - protect employers in
V ; • the
event - that unions attempt,
XX"' through strike action, to compel
v' 1 them to bargain over other mat-
these
high income ;taxes in order to
up
the excess purchasing
power that at such a time gets
into the hands of the people. For
the same reason it goes without
mop
vs.
Borrowing:
the
government cannot
nently.fix. The real
est
planning the financing of a
the balance that is struck
between taxation and borrowing
rate^of inter-
bound to show itsell in the
of
capital
walue.
bonds.
Our,,, business
•
government
units aie
hungry for more capital and the
Government will have to
Federal
compete with
long run.
this
trend
The fundamental principle of
our
republic is not unlimited
arbitrary rule by
a
or
majority, but
such
goodly part
the govern¬
ment' should be syphoned back
into the National Treasury. There
an
emergency a
of the funds spent by
is no need at such
of
the .untoward
taxation
on
a
time to think
effect
of
high
business and produc¬
Federal
the
Reserve/System,
Largely in this way the basis was
laid for the inordinate expansion
of
our
currency
This
posits.
our
war
and demand de-
well
known
fact is
financial inheritance from the
and the deficit financing
that
the constitutional protection of tion in general. The governmen preceded it. It has given us-the
problem - of /inflation
the fundamental rights of minori- appears then in the markets as gigantic
which we now have on our hands,
ties and individuals. Communism the ' great1 and almost sole de¬
And
now the authorities who have
denies and destroys every one of manded It will absorb nearly all
created this dilemma are suggest•r
:-*ters.
the rights which our system rec- the goods and services that! can
foe* produced.
vi w sh to make it clear that- ognizes and protects,
Full employment ing that they should have more
v what T
am proposing would
not
Communism achieves and main- will be maintained since an al power to combat the unhappy reis
available
and suits in their own unique way;
prohibit an employer and a union, tains its power through Greed out-'market
'
V
by entirelv voluntary agreement, and Bribery; through Intimidation necessary to supply the sinews of
I
Taxes Now Not An Inflation
: from including other subjects in
and
Terror;
through
Hatred,
Envy war for ourselves and our allies.
V
Preventive
;
the seo^e of their collective bar- ^nd Jealousy, and through Lying Moreover, under the influence of
v
Excessivety high taxes, as we
gaining Nor do I recommend that Propaganda, based on the theory thb patriotic motive, citizens wil*
V
satisfactorv arrangements that that the end justifies the means. bear the heavy load of taxes with¬ still have them, can no longer be
have
entered into should be
Thus, under communism1 the out serious objection. This is not an element' in the prevention of
inflation.
We
can
rio
disturbed or prohibited. All that mass of the people become com¬ true of the transition period at further
#
'
.
'
.
-
is
ciaimed>
expenditures
the
are
due to
European
and ioans as weu as t0 the
continued swollen Federal civilian
payroll and other budgetary requests.
It
is my
have ^
the
sources
of
preclude,
possibility of
any tax reduction> Some of these
it
in thw
By the extensive use of the reof the commercial banking
In
war,
is
perma-
system in Federal borrowing, all
by their Creator with certain unalienable rights, that among these is of prime importance.. Taxation the credit instruments created by
are Life, Liberty and the pursuit should
have
been
emphasized the government could be moneIn tized by the banks with the help
of Happiness. That to secure these more during our recent war.
area
work, come within
of collective bargaining
hold
self-evident, that all
ated equal, that they
perform
*
-
with
not" only the "Commercial &
Financial
all over the Chronicle" at the turn of the year.
,
As
read
commu¬
a
ability of corporations and
individuals
business"
here in America but
have
an
as
lower scale taxation. This relates
High Taxes No Longer Serve
business" has
well
as
relief in
sirable
of
Czechoslovakia
be
to the
a matter of fact, to¬
talitarianism under any name can
subscribe
now
stimulus to economic
a
activity; and specifically to aug¬
ment
savings and
investments.
statism, while flying the flag
liberalism, are in fact advocat¬
ing a system of! society which
when put into effect in a nation
enslaves its people. v
slow
in
reduced as
of
the
might also
Banks. Taxes should
serve
of
same
track track toward the same des¬
tination.
and
demand
deposits
created by the Treasury with the
cooperation of the Federal Re¬
money
future
Communist
^
4
•
longer offset in this way the ef¬
fect of the enormous amounts of
„■
bargaining, arid it an organization for the systematic
shouM.be made illegal for unions use
of violence:: by one class
of
;
"
was
on"
31
Many well meaning people have
natural or effective rate of inter- due at least in
part to the fact
been duped and "taken in" by combating inflation. As a matter
est. The result is now in part be- that it is more
liberally supplied
communist propaganda and their of fact, excessive taxation may at
claim that their system is demo- that time increase the severity of fore us, but the full effects of with tools and machinery than
cratic; It is democratic only if the inflationary trend. During the this policy are still in the making, the laborers of any other country.
The natural rate of interest deig alsQ ^eing
you accept Lenin's definition of a
jSUggested that
emergency proper (war) the scale
pends. upon the productivity of the "aftermath" of the
democracy. Here - is that defini- of
war
taxation
was
has
appropriately
capital in our economy. Eventu- complicated the
still further confusion in the mat- tion:
present
struggle
quite'high.
I was one of those
ter of Social Security.
"A democracy is a state which who at that time advocated a Fed¬ ally it will be clear that^ theira
of interest is only another one of against inflation. Large continuing1
expenditures which are deemed
Welfare
and ! Similar
plans recognizes the subjection of the eral sales tax as a- complement to
the; prices in the market which necessary by some will
should be excluded from the area minority to the majority, that is, our
5>
*•
lations.
in
'preempted. the area of old age
pensions with respect to the first
£3,000 of annual income of all
employed persons. To require or
permit this highly complex issue
of pensions also to become subject
to collective bargaining will add
:
/
the area of
business"
loudly
of industrial disputes, difficult-— that we are daily becoming less
if not impossible—to solve.
The and less impressed by what they
Federal Government has already say.
*
•
-
"unfinished
the area to enforce communism
of collectivei bargaining can only
create new and unexplored areas
•
■
this
to
over the world.
The
forcibly calls attention
will
than
traveling
only enslave and brutalize the
people.
The great delusion of' those who
hang
coal strike
the peaceful resolution of which communism is a very real and m-*
be much more difficult
socialism
and
freight,
still
;
v
train
time, but they are particu¬
>
:
One of my friends recently said
that communism was an express
hurry.-.. As
week. I'M'; ./ 1;■./•"/,;; •" /■
only do these plans present
many
moaern
larly bad now when it has become
clear that threatening war tlouds
payment when
40 hours
development and formulation, but
>
at any
Not
.
Our
(1447)
.
on
the employe works over
■.y per
nation.
trie
T" LE
never endured it is that a people
torship of the power-drunk few. will be happier and more pros¬
As a matter of fact, ,to Marx perous in some communistic or
they meant- the same thing, and socialistic form of society than
he- frequently used these terms they can or will be in a free so¬
interchangeably. It- is no accident ciety based on the fundamental
that the^official name of the Rus¬ principlesrecognized
by
the
sian: Government is the "Union
founders-1 of
our
republic*
Our
of
Soviet '-Socialist
Republics," Americanism is still the new, rev¬
^nd for -that matter, that the Nazi olutionary, liberal philosohpy in
Those who advocate
party in Germany was the "Na¬ the world.
tional Socialist Workers5 Party." communism, socialism or any form
insur-
usual union
The
of
CHRc,
pletely subservient to the dicta¬
industry is completely dependent
a continuing flow of raw ma¬
terials starting with coal and steel.
time basis that is of Crippling industry str.kes»are bad
and
ance, tax and corporation
Pension plans also must be
1
lite
FINANCIAL
&
feelin| tj/we
our
costs of these
such
proportions
p0wer
items down to
that a sizable
cut in taxes may be effected/ No
one objects to the humanitarian
for giving Western Eufood, fuel, and fertilizer for
their fields. Beyond that, however, all is speculation.
In
conclusion,the
excessive
program
rope
,
taxes
which
were
appropriate
during the war emergency are
now ineffective as a deterrent to
inflation.
dividual
The
stimulation of ininitiative
which
will
bring about increased production
is the soundest method of procedure. This can be done by making savings and investment available to producers and giving the
tax payers of all grades some relief from their burden. It may be
argued
that
this
is
a
long-term
remedy. This is correct but
it is
also true that the melioration or
cure
of inflation cannot be ef-
fected in a short period of time,
We shall do well to reject the
short time expedients and devices
involving control of
our
economy.
•
THE
(1448)
32
COMMERCIAL
FINANCIAL CHRONICLE
&
words, the cost of preparing for, customary to admire the Prussian
of fighting the next war is not (and later also the Japanese) dis¬
reduced by augment¬ cipline notoriously inculcated by
U.M.T.: Show of Force or Lack of Sense?
the
of
west
got further than
Leningrad-Moscow-
never
men
the transportation problems
have
(Continued from first page)
lion
Stalingrad line. It would have had
almost twice as far, and use
at least 50% more force, to reach
a
final show-down with the So¬
to go
to
with
overcome
which
are
we
faced.
Similarly, Chinese, Ko¬
also Indian and
Japanese manpower could be used
perhaps
rean,
the
on
side of Russia. If
eastern
another
be
should
there
war
fought with millions of bayonets
and
machine
guns,
the logical
viets.
Today, the Russian army is presumably' better trained, equipped' thing is that we produce,the armand organized than ever before. am®nt® anc* supply the technicians
ihcluding air power, rather than
There are more Russians, too; in
let Europe and the Far East do
addition, the Soviets can enlist
that job for which they are scarce¬
many divisions from the satellite
countries, just as Hitler enlisted ly prepared, especially not while
under enemy aerial bombardment,
The ter¬
as they very well might be. Even
ritory we would have to overrun
in the last war, our decisive role
also has greatly expanded by 500,in Europe was technical in the
000 square miles in Europe alone,
them, and even more so.
advantage.
strategic
Moscow's
to
broadest
of that word. Inci¬
sense
American
manforce that beat, Japan, was numer¬
we need in a next war, if we are
ically far inferior to the Nip¬
ta avoid the fate of Charles XII,
the
would dentally,
large an army, then,
How
Napoleon the First, and Adolf the
less than
matter of years?
a
and
hundred
Two
divisions
twenty
Arehaic
Mass - Warfare
{
not
wouldn't
they
do;
have
have to do a similar
we
well?—
job on the Pacific side as
staggers the imagination,
to say
nothing of the financial costs.:!
..
.
If
with Russia has to be
war
a
fought by American mass invasion
of the Soviet empire, we, might as
well consider it lost from the out¬
set.: It would take years to
get an
of such dimensions mobil¬
and
equipped, transported
supplied. Nor could the over¬
army
ized
and
running of the Russian lands or
of their vital parts, in the face
of desperate resistance, be a mat¬
ter of months., A war of such
duration, magnitude and expense
double
would
treble
or
our
na¬
tional debt. A prolonged war with
Russia would mean the destruc¬
of
tion
Europe, leaving
struction
problem
to
compared
one
our
on
which
would fade into
recon¬
a
the
hands,
present
insignificance.
.It all would add up to the virtual
extinction of the paper dollar's
77/'7 / ,/
Mass
In
Invasion
short,
invasion
War
is
the
for
wants
idea
of
against
^
a
mass-
Russia
is
fantastic and its implications sui¬
cidal.
But if Universal Military
Training
;
means
preparation
kind of
a
for
The
war.
teresting,
;
something,
means;
-
just
to prepare
idea
bombs, jet-propelled rockets, su¬
personic missiles, "death-clouds,"
and what have you. If we cannot
beat
the enemy
by destroying
from the air his supply centers
and
communications,
then
we
would be up against another fiveto-ten-year, contest with a very
doubtful outcome. If
tions
niust
there
war prepara¬
be,
instead
of
material resources
and manpower on universal train¬
wasting
our
ing, we should concentrate on two
things: on maximizing the amount
of decisive air-borne weapons and
what
with them, including
the highly trained personnel of
limited numbers; and on arming
the
goes
potential allies.
last
Even
the
as
tary mind that still dominates the
Pentagon.
r
'•/
y
The notion of sending over mil¬
lions of Americans to fight Russia
—the only potential enemy worth
\consideration—is nonsensical, for
/ ohe thing, because it implies that
we would fight
single-handed. But
it is preposterous to assume
would
have
no
allies.
that
Actu¬
ally, the entire world outside the
"sphere" which the^ Soviets rule
(with
connivance) is bound to
go - with us. Now then, Western
and Southern Europe, from Scan•
•
our
dinavia
come,
to
close
Greece
and
Turkey,
to
posibly
countries,
including North Africa,
East, and some British
the Middle
f Dominions,
7 the brunt of
quirements?
numbers
would
have to bear
direct manpower re¬
Between
them,
in
half
supply
of
the
training is what
our youth,
and
give
it, not military, drilling.
The t alleged
American
need
manpower
forces will need
would-be conquerors of Rus¬
ous
for
vast
a
ten
if the Soviets would continue the
hold
to
their
we
lines
own
ized, if not totally defeated Russia.
* UMT Expensive
tory
and
—
Russians
But
cf
soldiers
such
to
for
"re-educate"
democracy?—as
Guara.
The trainees
become
v/-
constitute
what?
pool—-for
Or
abroad
or
UMT
of
does
tern p
were
"soldiers," ' but
merely
millions
would
be
occuption,
of
1
a.
not to
instead of the
would
lieve
t
a
at
to
the
if
that
would
all one
might have to occupy
the border
sides
west
areas
of
the
on
are
and
the
silly that
it.
war
England
one
fashioned
against
in
Russian
frontiers
mental
Warfare,
or
spite
all of the
in
an
the
of
try
the
be-
not
Educational
No
Some
H
the
technological change in
so simple that
a
child
educational
it
means
or
two million young men
would have to be maintained at a
pie
high level of consumption, housed
and trained, all at the expense of
the taxpayer- and with ho pro¬
young
ductive contribution from them in
And
return.
this is
what
value,
tensions in its
out
actual
of
all
to take
care
God
for—its
so
so
effects
a
the
UMT
serious
amounts
Note
the
the
on
That
disciplinary
democracies
discipline is
Also,
to
to the
worn
•
propaganda
1947,
Oswald
mented
the
<
old
In
*
on
top of
of
some
year.
By
a
$5
current fiscal burder.
to
$10
billion
77/p /7-1./,.
v..
its
another,
on
Mr.
each
7 ■;'-•
•
very
of
the
entire
well
as
in
quality,
they would be better than equal
to the enemy, and
they would not
troops
las,
that
should
be
local,
not
all
for the sake of
The
mere
j
lands,
in
modern
warfare.
In
other
customary
coun-
It is the
public
ex-
the
education
control
of
national,
to
sneer
discipline,
as
e
said
we
There
are
NO, that
no
Russian
the Greek guerrilone has ever seen their
7
'
7 *7
among
-
.
contain
to
the problem is
the
within
Moscowites
their
borders,
within the limits assigned to"
appeasing generosity
>
0f
Hit-
government.
It is the exact opposite of Wash¬
ington's thoughtful condemnation,
lack of
resistance there and
them by the
eulogy
was
rendered
winning the-war. highly-skilled technicians wanted
loss of the border
and they
although there
other words,
not
single plane or gun will be
superfluous by UMT. As in the Farewell Address, of: '.
and would join us as soon as our a matter of
fact, more men have those overgrown military estab¬
troops arrive, - Possibly,
some to be supplied with more weapons, lishments, which under any form
areas
in
the
Caucasus,
the whether or not they ever serve a of Government are inauspicious to
Ukraine, etc., might; be invaded "useful" military purpose.
Nor liberty, and which are to be re¬
too.
The point is
tjiat we do not will the kind of training meted garded as particularly hostile to
need
to
out
to
the
young men, say in a Republican Liberty.';"
conquer/the. whole of
'.-///
Russia or even a'rhhjor part of it year's time, add to the number of
Even in Western Europe it is
a
Iran
of
when
forcefully
Messrs;
Churchill
and
Roose-
at
They did not go beyond, and
will not go beyond, until they are
atom.
Once
they do
present armaments
lete
so,
•
our
will be obso-
altogether. : Presently, they ,7/'•;
of our immense indus-/ >*/
are
aware
trial supremacy, and the last "war
has taught them of our ability to
,
use
it. All
ness
we need
deal out a
to
is
a
prepared-
deadly blow,:
preparedness that means perhaps 70 air groups instead of 40,
a
j more carriers, more atom bombs,
and
the securing of proper bases.
War
preparations on the con¬
templated scale will weaken us
rather
than strengthen. The true
of the international prob¬
nature
is not the danger of Russian
aggression, direct or indirect, open
or
camouflaged. Its true nature
consists in Russia's ability to ob¬
lem
struct
world-wide
economic
nor¬
malization and financial stabiliza¬
tion.
tion
The Soviets
to
sabotage
reconstruction
American ; as
it used to be
77/
velt.
the
fighter,
Villard, com-
"That
under
no
or no
In
liberal
men.
out
trace.
scathing
a
youth of his
try by military
within any such deThe fact is that they
went back,
that.
was
act opposite of the American tta-
dition
on
say
approach, j willing to fight a war, which they
provide ' cannot dare unless they master
Truman's
conscription:
got
danelles;
emphasis
ler's idea also—the indoctrination
or
armaments
they have vital interests involved,
They asked Turkey emphatically
for "joint defense" of the Dar-
its
of
kind
need
not
do
Garrison
we
would be
editorial of "Human Events," Feb:
5,
do
never
of the most shopin the totalitarian
store.
Trieste
are.: obviously
major scale, to
they
one
articles
of
east
step over any dine if it
might embroil them in war with a
major power. Upon our insistence,
|
President's
,
never
drawbacks of spiritual
without
even
items.
fined line?
to—without
„
of
steamroller
forth,
benefits
one
t
uml l™Lconscrip.tl0!?
what
not
nothing of
conscription, to hold the Russian
And
taxpayer in the form of veterans
of
But
"disciplinary"
might be ascribed to
that
is
apparently
Greece and the
Manchuria
any
and bet-
same
of Prague or'
be
stopped
that
defined, .but
doubtful
is, what it
and
on
should
line
north
anc*.
I
and
Note
implied
get her out of War¬
Bucharest,
She
a
no
as well as of Scandinavia. Finland
responsibilities.
would not offer the
usefulness—
costs
us."
aggression.
i
to
Dardanelles, and
of this Tern-
gave
this government
sports,
to the
proportion
combat
would be the
or
runs
a
be di¬ militarization,
and
employ¬ staggenng costs.:..
wake.
;
have
Truman,
materials would
productive
UMT
ter educational and
them—and
so
__
think the best way to do
through a universal training program."
As if family life,
schools,
churches,
youth
clubs,
Moreover,
from
saw
Korea.
specifically: "I want our
people to be informed on
stands
the
eco¬
nomic
system that is suffering
from a manpower shortage would
be doubly damaged:
by losing the
men
in training—and those who
scarce
in
UMT
of
President
which
more
In many instances, family
members may have to be publicly
social
Value
"collateral
last
December, spoke sanctimoniously
of a "universal training program,
giving our young people a background in the disciplinary anproach(!) of getting along with
on^ another, informing of their
physical makeup (sic!), and what
one
verted
intention
temerity to claim that it has
benefit."
grasp : it, but apparently
palatable to political generals
general-politicians.
train
"further"
the "further": there is
along
advocates
-
without
or
conscription,
big idea is to frighten Russia
from
military
: r
tow.' *
clearly
skies/not on the oldbattlefields, still less in
supported.
in
With
'
111
Universal Mili¬
tary Training is just about the
most expensive
way to national
self-protection. In the first place,
it is costly in itself. Every year,
not
mind has to be read since ithas Congress and the whole coun-
astonish
officers
do
Mor e
precisely:
Administration after?
Its
best
services
after"with*ad th<£e
we
armaments?
the
compulsory
lose the next
Economically,
and
of
hesitates to discuss
should
of
In
are
what is the
in modern
time they
y
the
for
,
as
.
deeper
What
the Polish,
nature, universal
training in itself does not relieve
the country of other military ex¬
in penditures.
Not an atom bomb,
which the vast majority of popu¬
is
anti-Russian
anyway,
spend.
lieve
the
the backwoods. That is the funda¬
not
paid
to
ing /number
in the
war
and
and
have
empire,
i.e., mainly the territories beyond
1938
not
useiessness.
problem at stake than UMT itself.
reserve
highly
the technical
necessa
so
seriously conprotecting America's propaganda for UMT
e
We will win
the east and
Soviet
its
on
the
country—and
many,
jobs for the brass hats.
; * v
"
over
many
basis,..
to carry on
activities
same.
a.smaller
volunteer,
a
trained
be
home, the fal¬
remains
Qr like
their
in question at all. In reality,
come
scarcely
military author-
of
aware
is
is
country, but authorization control
iecauso nf the AdminSerb; training. Because of the Admin¬
Russian guerrillas fought in istration policy and propaganda,
backwoods? : The idea is so they naturally remain silent." '
Nazis?
hanced
for
idea./It
If, •<
it, they do so pre¬
sumably for other reasons. What
conscription might accomplish is /
not
military
security
for
this
I be¬
of 1944.
war
want
we
on
manpower-
Whether
anyone
defend
to
we
Allied
available
be
abroad, it would
army
futility:/ conscription
they insist
to provide the new
and methods of transport
weapons
soil againt a huge invading army,
as Churchill contemplated in 1940
the
Germany and Japan.
course,
a mass
its
insidious
Time and again, UMT is being for any such; army. During that
presented
;
How Russia Can Be Kept in:
by
War
Department time, additional men could be
spokesmen as a sort of corollary trained, and trained in the meth¬ -/•/.;/ ,'7/ Check 7:v 7.
-.///
to the
Reserve or the National ods of the war they are to fight
However, there Vis 7 a
after another war, the number oi
fresh
"veterans"
would
be
en¬
have done in
than
an
take two years
III
army will have to oc¬
the immense Russian terri¬
10 years, the
training wears -out
completely. What is eve a worse
certainly do
of men
against sudden attack.
it should become necessaiy to
for defense
send
two, the conscripts will
available as yet. In five or
or
not be
any war
not need any such number
i
year
We
aga/nst a mutilated and disorgan¬
to the fire of inflation and
huge
in
occur
foresee. :
can
and.
sition, universal conscription is a
hopelessly futile idea, to put It
mildly. If we have war within a
movement,
mass
conditiors,
believable that
partially' ities who propagate it should
million
twelve
or/
modern
under those of Amer¬
ica's geographic and economic
po¬
tens of thous¬
are
fight, the rearmed Central Euro¬ trained men for
peans
alone * shouldbe '■ strong most' unlikely to
pseudo-military) thinking. It is
the fallacy that after World War
a
Under
especially
against her ability to ands of college graduates with
10'
carry on the war indefinitely un-1 specialized skills rather than
less her territory is actually in¬ million
high
school youngsters
vaded. At present, aerial suprem¬ with enthusiasm, and that neces¬
acy would eliminate the necessity sity could be satisfied even with¬
of
physical control; the Soviet out recourse to the "formidable
system could scarcely survive at machine" of Selective Service.
To
sum
up,
home if deprived for good of its
quoting Senator
vital supply sources, and morally Taft's recent speech at Providence,
shaken by military defeat.
Even R. I.: "UMT would provide some
further
cupy
-
discipline
displayed
by
Hitler
Youth, SS formations, and the
Gestapo. '
sia were up
by the need ot
refitting them later for productive
occupation. Also, a vast quantity
is based oh
war
tial, too.
fallacy which is rarely ment. The added pressure on the
mentioned, but definitely seems markets necessarily will result in
to play a role in the military (or
Jiigher wages; in turn adding fuel
a
lation
these
better
in
Fallacy of Mass Occupation
the
that
than
so
fundamental
the
for
of
more
lites (250 millon against 310 mil¬
lion).
Is is not the logical thing
assume
the
should
matching Russia's
population—even with her satel¬
to
more
even
war
we
as
appears now, every
world. Technical
in- /,./
it throws light on the archaic mili¬
we
war,
nique
in
antiquated
in
to the gold-braided
superior which '•
resulted
in the
lack
of
ethical
demands of
/will *>e substan¬
manpower
It will require an army
of engineers as well as all types
sia would be of no avail under of auxiliary personnel. But what
present
circumstances,
as • it can UMT accomplish 4n providing
should be evident at once. Previ¬ technical skj)l?
What the armed
lacy
bayonets mean in the age of atom
that
is
True, the
tomorrow's
more
military drill.
That/indeed, has
produced the blind subordination
UMT.
than suffice.
early '40s.
It does not seem
grasped as yet how little
on
to have
it
however,1, inasmuch
of
In this respect,
used
source
the
war
ing it with the extravagant price
bombing
historical parallels
such as with Napoleon's and Hit¬
ler's problems in conquering Rus¬
cations, would
the pattern of
mass-war
a
the
that
one
peace,
Fantastic
constant
If
conception of preparing for
mass-warfare
is
as
typical
of
archaic-mindedness
in
military
matters as is the bogus fear of
its tech¬
country
found it peccessary to keep men
of military age and strength work¬
with the breakup of this nation's
ing in key industries. How much
social structure in its wake.
To
more
important will it be in the
many
Americans,
appeasement next
conflagration to keep the
may not
seem
too expensive a
basic industrial machine running.
price for avoiding such a disas-;
And that takes in farms as well as
trous "victory" — assuming we
mines: this country is bound to be,
would win that war.
' -7
purchasing power, if not the re¬
pudiation of the national debt,
in any way
The
to be
supported
by
technical forces,
manpower for the supply lines, a
coming depression in the eco¬
etc., possibly duplicating the num- nomic field.
It is no sheer coin¬
ber of men in the actual fighting cidence that the same Administra¬
forces.
The problem of ferrying
tion that has been preparing for
such a fantastic army across the
years against mass unemployment
Atlantic—and by the same token,
on the pattern of the 1930's, also
would
or
of internal centers and communi¬
enough
1 /v
ponese.
possibly
transport millions of men within
And how could we
Last?
with
combined
Thursday, April 1, 1948
are
in the posi¬
effort at
in Europe as well
every
in Asia, and can. do so without
sending; .a single soldier beyond
-7-
Volume 167 ;
their
own
Number 4686
sphere,
-
Germany
THE COMMERCIAL
can¬
result of
not
be reconstructed as
long as
the Russians hold the eastern
half.
China and Korea cannot be
put in
long as the Russians have
geographic key to those coun¬
order
the
in
poured
their
into
wasted
ist
The State of Trade and Industry
(Continued from
as
tries
long
as
parties
tion
hands.
France
sabotage
strikes
Money
long
as
ing threat of
italistic
discourages
A
This
investment,
incites cap¬
ital flight, and provides a rational
pretense for the economic irra¬
ace, our present approach is not
only futile (just as Byrnes' "tough
talking" turned out to be) but
actually promotes the Soviet ob¬
jective. Temporarily, while dol¬
lars
flowing freely, the
are
tries
under,
relax
may
dollar
Soviet
menace
somewhat., The
the
ment
dollar
flood
will revive.
menace
outpour
ERP
the
sooner
or
.
proclaimed only two
was
months
the only alterna¬
to
armaments.
Presently,
policies of dissipating our
tive
ago
as
,
both
resources
getting fully under
way, with their combined cost to
the
are
nation
billion
fiscal
next
In
come.
UMT
and
year,
due
—
will
be
of
the
greatly
to
cumu¬
strength and
United
States
weakened
if
not
Nothing would serve
Russian objective better.
If world reconstruction depends
Russia,
on
then
"stopping"
particular,
to
of
a
is necessary
we
of
risk
NOW.
were
in
still
possess*
bloody
Our
war
the
It
Association
23
further
last
week's
of
and
at
each.
failed, against 90
i
were
The
with
ness
addressed the conference.
W.
Dead
Rogers, one of the
pf Rogers &
of the firm
Tracy, Inc., Chicago, passed away
in Hollywood, Fla., on March 20,
had
made his residence
for the past nine years.
Mr. Rogers
has been inactive in the firm since
his retirement in October, 1939, but
held the title of Chairman of the
in
majority
of
the
concerns
week's failures
exceeded
with
this
losses
week ago, and 54 last year.
a
more
of
the
was
week
;
ties,
-
slight
a
:
.
uneasiness in
from
of
9.
and
week
a
construction
only
were
44
Wholesale
year.
group
in
slightly
7;
more
business succumbing in
numerous than in the
„
^
.
i
-
*
Central
with
15
and
the South Atlantic with
only
2
reported.
were
11.
The latter
1947 level when
;;
>
UP,WARD^
j',
The wholesale food price index, compiled by Dun &
,
,
:
Bradstreet,
Inc., continued slightly upward last week, rising to $6.72 on March
23, from >$6.70 a week previous, and the "year's low level of $6.61
on
March
9
and
Feb.
24.
*
On
the-
corresponding
weather
Favorable
sales
final
the
in
date
a
ago the index figure stood at $6.56.:i:7,b7';7';7;7;y£;■'.»
Commodities that rose during the week included beef, butter,
cheese, coffee, cottonseed oil, tea, cocoa and potatoes. On the lower
side were flour, wheat, corn, rye, oats, barley, hams* bellies, lard,
beans, eggs, steers, hogs and lambs. Although declines in individual
items outnumbered advances, the slight rile in this week's index
reflected higher prices for somp; foods which have a relatively high
per-pounci —1--~
LEVEL
1947
ABOVE
TRIFLE
«ie
CONTINUES
AND WHOLESALE TRADE
RETAIL
A
the
and
Easter boosted retail
Total dollar volume
approach of
the holiday.
before
week
appreciably in the period ended on Wednesday of ,last woefc
slightly above the level of the corresponding week a year
rose*
,
and
was
according to Dun & Bradstreet, Inc., in its current review Of
77'/, "7 v
7.- '
.
,,
7.
Despite this sharp dollar volume rise, unit volume remained
ago,
traded
.
fractionally below that of a year ago.
Retail
volume
food
generally
was
steady and close to previous
high levels.
The consumer demand for meat increased slightly and
requests frequently were directed toward the lower-priced ctfts.
Purchases of fish and poultry remained high and there was an
insistent consumer demand, for fresh fruit and vege,tables.
price of butter and some meats increased a trifle the past week.
The
-sharp increase in the demand for apparel during
medium-priced lines attracted considerable atten¬
many shoppers continued to shun expensive
apparel and
low-quality goods.
Children's wear and men's worsted and gabar¬
dine suits were eagerly sought.
Women's lightweight skirts and.
blouses were among the best sellers.
77
7;
There
the
was
tion
a
The
week.
as
7
was
cards
and
slip
of
that
of
above
I
of
7
covers
attracted much attention.
appliances
some
last
week
Regional
by the following percentages: New England 3 to 7,
11, South 4 to 8, Northwest 9 to 13, Middle West 6 to
7 to
week, numerous reorders
the
*
pre-Easter dip in new order volntne
While there was the usual
in
to be from 6 to 10%
estimates exceeded those
Southwest 8 to 12 and Pacific Coast 2 to 6%.
10,
placed.
were
Total order volume
high level of a year ago, but it declined moderately
week.
The number of buyers registered
close to the
was
•
.
week period ended on
year ago
a
East
7
moderately below
estimated
was
ago.
year
a
was
7; ;7' ;:'7.77- "7,77 7- 7;
Retail volume for the country in the
Wednesday
and
moderately, but it was below that of a year ago.
rose
previous high levels.
*7
shoe
Interest in jewelry, gift items, confectionery and
furniture
in
retail
year ago.
a
gardening equipment
supplies*,
housecleaning
coverings, curtains, and
Floor
and
steady
appreciable seasonal rise in the demand for goods
an
paint,
used automobiles.
Easter
remained
shoes
moderately below the levels of
held
as
for
demand
The
that of the previous
from
principal markets dropped considerably in the week. ;
,
V Department stpfe sales on a countrywide basis, as taken from
in
the
,
-
Although moderate weights of wool were contracted for in
West, the movement so far has been far below expectations.
,/v,
•
slow.
was,
Trading in the Boston raw wool market was reported at a
during the past week as buyers awaited developments
that mav result from lower prices in, foreign primary Wool markets.
;
1947.
Federal
Board's index for the week ended March $0,
Reserve
1948, increased by) 9%
the
ended March
weeks
four
from the like^ period of last year.
This com¬
For the
in the preceding week.
increase of 4%
with an
pared
1948, sales increased by 6%
20,
and for
to date increased by 6%.
year
year
Following
;
COMMODITY
CLOSE
PRICES
WEEK
RALLY
IN
LATE
TRADING
LOWER.,'."r V"•7'
Commodities generally moved
latter part of the past week, but
-j;;7
set
a
slow start, retail trade here in New York
very
close# J
Thursday's volume was very heavy
active.
fresh record for a single pre-Easter day.
a
According
to
the
Federal
Reserve Board's index, department
in .New York City for the weekly
store
sales
1948,
increased 3%
weeks
ended
...
broad front in the
was insufficient to wipe
out earlier losses.
The Dun & Bradstreet daily wholesale com¬
modity price index finished at 278.47 on March 23, off 1.0% from
281.22 a week earlier, but still above the 268.03 registered on the
upward
the rise
week
Easter
and
above the same
period to March 20,
period last year.
This com¬
1% in the preceding week. For the four
March 20, 1948, sales decreased 1% and for the year
pared with an increase of
£ ^;V
:
minimum
There
ago but remained
failures totaled 14,
experienced the sharpest upswing from the
;
<
pf cotton, as reported by the Bureau of the C
totaled 785,200 bales in February/compared with 860,200 in
arv, and 339,400 bales in February: a year ago.
Consumption per
working day was equal to 39,900 bales for the month.
This was
slightly under that for January and compared with 42,000 baftes
per day in February 1947.
Carded gray cotton cloth markets wwce
relatively slow and prices were steady to slightly lower for sddfie
construction.
y
7-•
;r
Interest
trade
or
good but mill buying
was
such
.
industry
FOOD PRICE INDEX AGAIN MOVES
r
;
the
early part of the week due
Strength in the closing days was
markets.
to date
rose
by 5%.
on ,a
:
/".'V;
•
■;'77 '-'•'"y'-
(Special
to
The Financial
Webber
(Special
Chronicle) v
CALIF.—John
corresponding date a year ago.
,7
N. Cornish and Thomas B. DrumAlthough showing strength at the close, leading grain mar¬
mond
have
become
associated
kets were unsettled during most of the past week with prices
with Paine, Webber, Jackson &
trending irregularly lower.
Curtis, : 626 South Spring Street;
Trade demand for cash wheat was slow but the government Mr. Cornish was previously with
" 1
'
' - *
was
an
aggressive buyer.
Prices, however, broke sharply as the Deafa Witter & Co.
LOS ANGELES,
..
/.
*
•'
Crowell Weedon Adds
*
Two With Paine,
.
,
cotton prices registered
range,
Consumption
volume
-;'77;7;:
;
'
area
touched
heavy
reflecting
Shippers' demand for cotton, particularly for better quali-
.
i
Of the 87, there
than $100,000. 't
only
the
failing declined
occurring last
21
three
North
narrow
in outside
size
casualties were heavily concentrated * in " the
Pacific States with 34, rising from 28 last week.
The Middle; Atlan¬
tic States had the second largest number. 20, followed by the East
BUT
Edw. W. Rogers
casualties than
more
^(Geographically,
r;
M.
Collins, Julien
President of the
L B. A., and Murray Hanson, GenCounsel of the Association, also
the
probable loss to creditors.
.Retailers
the
H.
101, considerably
mortality increased from last week, rising from 26 to 35
exceeding by 10 the number in 1947's corresponding week. J
and
above
Chicago Transit Authority"; Clif¬
Julien
to
which
>
|
estimated output of
an
Manufacturing
Walter J. McCarter, Gen¬
eral
Manager
of
the 'Chicago
Transit Authority, who spoke on
H. Collins & Co.,
'7v""
principally in manufacturing and
retailing where 35 and 36 concerns, respectively, went out of busi¬
the
Utley, whose topic was
"Hour of Decision"; and John K
Langum,
Vice-President of the
Federal Reserve Bank of Chicago,
who spoke on "Government Fi¬
nancing and the Economic Situa¬
.■:•;}
7.'7
the United States and Canada
week's failures occurred
ada";
.of
/;7/>;V/'7:;7y''
trucks in
with losses of
seven
same
Situation
CUTBACK DUE TO
stated
of
of the Board of the Standard
Present
BY
Eighty-seven
lines
Board.
when 5,436,430,000 kwh.
vT'V.,„ 'J:'-.
V7 77
the prewar level; a total of 301 businesses succumbed in the
corresponding week of 1939.
:
v
r
7
V-
service
where he
1948
third
America
24th,
and
106
these
Edward
24,
the
we
weakness,
Congressional approval of additional interim aid funds
Italy and Austria. Inquiries in spot; markets were faihPly
numerous
but sales declined for the week.
Total sales reported
in the ten spot markets were 80,600 bales, as against 110,800 bafles
in the previous week and 85,500 in the same week a year ago.
the
commercial
founders
Jan.
the comparable week of 1947 when 63 occurred and over five times
18 in the same week of 1946.- Failures remained at about one-
the
Indiana, who ad¬
dressed the gathering on "Supply¬
ing the Middle-West with Petro¬
leum Products"; Harold Long, McMaster, Hutchinson & Co., who
spoke on the "Outlook For Can¬
.
ended
cars
Chair¬
tion."1
March
ended
serious aspect.
more
from
Oil Company of
ton
week
Liabilities
Dr. Robert E. Wilson,
"The
week
CHANGEOVERS vV
in
considerable
for France,
Continuing the?; mild fluctuations Characteristic o£ the past
month, commercial and industrial failures fell off-slightly in the
week ending March 25. ' Dun & Bradstreet, Inc., reports a decline
Drake. 7 ;;777:7;. .;>/■•' '77-7\7:;7y77
Speakers
at
the
Conference
man
^
BUSINESS FAILURES OFF SLIGHTLY
held its twelfth annual conference
were
WEEK
industry however, over unconfirmed reports that the
government has been piling
up
copper
stocks since, this trade
authority commented, adequate supplies are on hand.
in
and
a
cern
CHICAGO, ILL. — The Central
States Group of the Investment
.
FOR
that the coal mine shutdown is taking
It warned that the situation for the auto
industry could take on crisis proportions the next week as pig iron
and sheet steel supplies tighten.
"Ward's"-added there is no con¬
on
a
some
was
to weakness
12.1%
108,057 units, "Ward's
Automotive Reports" states.
This compares with a revised total
of 115,556 units in the
preceding week and 100,355 units a year ago.
The slump in auto production was attributed
by "Ward's" to
a
cutback in;: schedules by Ford to permit a changeover to new
Holds 12th Conference
March
the
declined last week to
Central States I. B. A.
on
OFF
STRIKE
Production of
$5,000
,
There
year.
OUTPUT AFFECTED
models.
interest in forward commitments.
no
attributed to
COAL
MODEL
or
showed
prices
Moving in
1,281,210 tons for the average week
produced.
AUTO
estimated -fettt
net rise during the past week.
labor difficulties in the coal fields.
It represented a decrease
143,559 cars, or 17% below the corresponding week in 1947, and
decrease of 104,124 cars, or 12.9% below the same week in
tential at present.
Bankers
and
prewar
LOADINGS
TO
reached
conjure up by not using that po¬
•
tons
kwh., according to the Edison Electric Institute.
This was 80,875,000 kwh. below the preceding week and was the lowest turnout
since the week ended Jan. 3, 1948 when
production amounted to 4,868,011,000 kwh.
The current figure was, however, 335,670,000 kwh.
in excess of output in the week ended March
29, 1947.
The peak was
ignore
preparations
future
a
highest
1,611,400
against 1,725,000 tons last week,
1,669,400 tons, or 95.4% of the old
000
both; the bloodless diplomatic po¬
tential
the
1940,
~
equivalent to
was
the average slightly lower, reflecting expectations of heavy Hog
marketings as soon as the strike of stockyards workers is ov«rIrregular fluctuations featured the Chicago livestock markets vtfttfo
both cattle and hogs prices finishing slightly higher for the week.
The amount of electrical energy distributed by the electric
light
industry for the week ended March 27,1948 was 5,064,555,-
is not to stop,
back, right
showing little
Corn
as
ago,
ago
is
It
on
and power
meaningless, too
are
long-range
-
in
year
94.6%.
was
rate
offerings from farmers.
selling of futures by speculative interests. After showing strength
in early dealings, oats turned downward in sympathy with o#«r 7
grains. Domestic demand for cash lard was slow and futures prices
.
ELECTRIC PRODUCTION CONTINUES DOWNWARD TREND
but to reverse the Soviet tide—to
it
Mon-
on
20, 1948, totaled 700,482
cars, according to the Association of American Railroads.
This was
a
decrease of 96,551 cars, or 12.1% below the
preceding week, due
her
Long-range --programs,;;UMT
dam
one
month
a
Loadings for
further aggression is meaningless.
What
capacity
DUE
operating
ingots and castings
FREIGHT
the
undermined.
the
announced
of
government had purchased aroUn'd 17,000,000 bushels of wliWtt
flour equivalent since the resumption of buying on March 5.
Domestic flour sales continued slow with bakers and other larfc&e
■
>,
Steel Institute
and
the indicated rate
week's
1,705,000 tons
infla¬
course,
The internal
coherence
in
more
the
tionary effects will become
lative.
'
probably to reach $25
without
—
of steel
And ebb the
must,
5)
flood
a
*
and
third-quarter quotas will
mo¬
ebbs,
■*,;
later.
*
the
coun¬
American Iron
1
<
.
.
month ago
cap¬
tionality of bureaucratic blundering.
;
Instead of stopping this men¬
page
that
day of this week the operating rate of steel companies having
94% of the steel-making capacity of the industry will be 89.4%
of capacity for the week
beginning March 29, 1948, a decrease
of 6.3 points, or 6.6%.
This compares with 95.7% one week ago.
produc¬
anywhere
is
the over-hang¬
as
war
cift.
The
otherwise.
or
poured
wasted
be
(heir customers
warn
(1449)
the
users
companies, to
their Commun¬
as
can
by
Money
Italy is
and
FINANCIAL CHRONICLE
&
to
The
Financial
Chronicle)
LOS
ANGELES,
C A LI F.—»
Charles E. Hodge is now associ¬
ated with Crowell, Weedon & Co.,
650 South
Spring Street, members
Angeles Stock Ex¬
change. --We was formerly »with
of-
the
First
Los
CaliforniaXo^.
34
(1450)
THE COMMERCIAL
(Continued from
V
standards
(b) To promote industrial and
general
economic
development,
which
must
still in the ^arly stages
of industrial development, and to
ana
are
further
of
by all countries,
of
and
prod¬
markets,
their
for
needed
prosperity
eco¬
(d) To promote on a reciprocal
mutually advantageous basis
tional
other
;
commerce.
(e) To enable countries, by in¬
creasing
the
opportunities
for
their trade and economic develop¬
ment,
abstain
to
from
ment
But
com¬
a
of
Article
and
Domestic
luciiiuci
member
achieve
and
productive
large
takey
maintain
full
S1]ru
dpn
measures
political, economic
institutions.
to
avoid
and
Members
measures
social
will
seek
creating
bal-
ance-of-payments difficulties
to
for
trade
restrictions, the member is
to make its
full contribution and
appropriate action is to be taken
by the other members concerned
r-io correct the situation.
Such ac¬
tion should expand rather
than
contract international trade.
Deflationary Pressure)
or
recognizes
that
members
may
need to take action to
safeguard
their economies against
inflation¬
ary or deflationary pressure from
abroad.
In the
case
of deflation¬
ary pressure
special consideration
is to be given to the
effect on any
member of a serious or
abrupt de¬
cline in the effective
demand of
the
other countries. Article 7
(Fair Labor Standards) calls on
^
members
to
do
whatever is ap¬
propriate and feasible to elimi¬
nate substandard conditions
of la¬
bor, and refers
in
this connection
to cooperation with the
Interna¬
tional Labor Organization.
nizes
that
common
all
countries
interest
quantitative
X?? USu
recog¬
have a
in
the produc¬
use of the world's
human and
material resources. Under
Article
9, members are obligated
tive
pro¬
gressively to develop and. to-
re-
main, subject to the commitment,
under Article 17, which obliges
members
to undertake
negotia¬
■
tions directed to
substantial
a
re¬
the
Such
recommendations
and
mutually advantageous
Existing preference mar¬
basis.
gins
are
not to be increased. Rules
are
laid down for conducting such
negotiations.
If
to those under the fund.
C.
to 28
deal
cluding
is
found
to- have
failed
to negotiate in good faith,
the ITO may authorize the with¬
holding
The
take
Article 18
taxes
provides that internal
regulations are
trade
and
not to be
products
upon
.
more
severe
imported
place
two
quotas to
industries.
film
-i
Section B.
of
protect national
•*;
stances.
the
Exchange Mat¬
of
use
cprtarn
as
export
defned
ments,
world
tion
sub¬
in-
pre
An
exception is allowed
for imnorts of products fo- gov¬
al®o
State
use.
brought,
within
tra^'n*
the
*
is
Charter
obligations for reduction of pref¬
.
,
intended
a;
of
agree-
•
"expansionist" -*
to
and
commodity.
enlarge
f
consume-
i
the V
But
>
specially concerned in lay-
ing down rules to cover "control"
types of agreements, which may;*
have; harmful restrictive effects
on trade. \
^
i
;i Mernbers are obliged to enter
-
.
into
new control type agreements
I
only through Charter procedures, ;
State Tradina-r-Ar-
organizations
tyoes
production
of
JTO is
ticles 29 to 32 lav down the nrin*
Marketing
all
including
agreements
circu™*
ciple that state-trading enterprise®
be guided by commercial
principles ih b"vinp and seli'ng
and
must avoid discrimination;
with
cerned
gain more than a fair--share of
world trade in the products con¬
cerned.
Section D.
*
.
,
may
rot use
orimarv products--to
on
for
;
modify agreements ard the types
y
of agreements wh:ch
may be coneluded.
The ITO is to be con-
Members
:
ernmental
,
Quantitative Restric¬
tions and Related
soon
as
-
groups
However,
as
regards
primarv
commodities, soecial provision is
eluded.
use
to 70)
conducting
study
and'for holding commod¬
ity conferences, the general principles which are to govern com-
mem¬
into force, although the ITO
power
to
grant extensions.
has
to
conditions, the
eedures
in
nqust
certain
increase
an
possible
any event not later than
years after the Charter en¬
and
frorjri
other members than upon domes¬
tic products.
One of the excep¬
tions (Article 19) permits, subject
screen
(or prevent
as
subsidies
into the group' of con¬
parties to ; the General
Agreement on Tariffs and Thade,
:v
culties
abandoning of export sub¬
a
general policy is to
sidies
will
tracting
j^r (Articles 55
■j Recognizing the
or
bers whose trade is affected.
in
members
V'> ;
Commodity
:vvAgreements
;.;V'
to
exports
limitation of subsidies with
for
bringing
'
make
special dlfflaffecting primary com¬
in) imports. Members are obliged modities, Chapter 6 lays down the
intergovernmental
to give full details of the subsi¬ objectives; of
dies they are using and to discuss commodity agreements, the proto reduce
made
effect of
to
Intergovernmental
or
operate
increase
or
sides
the
income
of
that
f
In other cases,
be asked
may
■
subsidies, in¬
form
any
support,
maintain
of
benefits under the
most-favored nation clause,' Suc¬
cessful conclusion of negotiations
have
with
international agency,*
exists.
one
ITO
CHAPTER 6
;
Subsidies^-Articies
Section
ters
member
a
agreements would
place on
such members obligations similar
nation of preferences on a recip¬
rocal
appropriate
If. however, there is unreasonable
delay,
proceed
interestedcoun+rjes may 'A
bv direct negotiation.
^
!
Commodity-cQhtrol *.agreements *
to. be entered into only when
a burdensome surplus or :
widespread unemployment which /
could not be corrected by normal t
market forces alone...These agreer
^
are
.
there is
ments are to insure the availabii-
ity.
supples
of
adequate
.
ters—Quantitative restrictions on
imports and exports are in gen-
erences,
eral
reaspnable; pr'ces: 4 Crufdjng bmn* )
ciples v for : administerin g : control -;
of the so-called technical articles
Articles 33 to 39 is to provide agreemen ts are; laid, down. / but %
standard rules for the adminis¬ particular; methods to be used ^or. *
tration of freedom of transit, valu¬ dealing with specific commodities "
ation for customs imnort and ex¬ are not given, this being left tat
prohibited (Article 20). But
a number of temporary and per¬
manent
exceptions, other- thap
those
balance
on
grounds,
of
-
-
payments
permitted. • ■ Among
temporary exceptions- is the
the
are
Section E.
General Commercial
Provisions—The
general
times
to
meet
world
at
all u
demand
at
-num-nse
preventing
cal
>
■
and unwarranted
™ternationa!I trade,
made between
measures
conflicting with nego¬
tiated obligations
(i.e., obligations
assumed
is
j1. °*her members but
measures
with Charter
Protective
that
do
conflict
obligations,
measures
type are to be settled main¬
ly by direct negotiations
between
the members concerned.
Measures
type must be referred
to the ITO for
approval.
Auto¬
of the latter
ITO
granted
if
approval
certain
will
stated
be
criteria
fulfilled.
These criteria re¬
late to certain types of industries
and
their
date of establishment.
The Article also deals with
dam¬
age to trade resulting from
pro¬
tective
tion
to
and
measures, emergency
offset qxcessive
ac¬
imports
the need
for
secrecy
in ad¬
ministering the provisions,
>
Special circumstances
may jus¬
tify preferential agreements for
economic
ITO
must
proposed
be
preferential
may
ar¬
authorize it
majority.
ITO
criteria.
or
stated
Among
or
belonging to the
region, and (b)
preferential
rates
sound
a
involved
market
for
the branch of
industry or agricul¬
ture to be protected. If the new
arrangement is found to be
likely
to
injure the
outside
dures
ing
the
are
stable
uation,
balance-of-payments; sit¬
trade
of
members
arrangement,
proce¬
laid down for negotiat¬
satisfactory
compensation.
Section F. Special Provisions^Article 40 d e a 1 s with
emer¬
and
ports th»t threaten serious'
injury
to domestic nroducersr -
may
affect international
ures
guard
the Charter for
a group, of cen¬
tres to take sfens fovaH formine
of its imports, subject to the rules
and within the criteria laid down
r»f
in this Article.
elimination
Article
which
22
<•'*,■'
sets
out
the
jv
way
in
quantitative restrictions to
safeguard
should
balance
- of - payments
administered without
be
discriminating between exporting
countries,.
<
i
Article 23, in view Of the prob¬
lems of postwar
adjustments,*
thorizes
members,
with
au¬
suitable
safeguards, to deviate from the
principle
of
non-discrimination
during
a
transitional-period.
•
trade
during
period.
known
and
transitional
procedures,
Alternative
"Havana
the
as
the
available
to
the
ontion"
Geneva
for
"option,"
are
members requiring
operate under this Article.
[ Article
23
purposes
a
also permits a mem¬
to
direct
its exports in
increase its earn¬
way as to
ings of hard currencies, provided
it does not deviate from the
customs union.
non¬
free-trade
The formation
involvine *he
areas.
a
i*rnuo
vided for.
Article
'deals
the
International
ment»
exceptions to Chahter 4r In: add*-,
tipn to the standard exceptions tr
commercial
treaties;
a^ r
fomporarv exceptions
of
number
there
connected with emergency"
cor»d;-
tions,
short¬
such
postwar
as
ages.
CHAPTER 5
i Restrictive
of
action
against restrictive busm®®*'
nrsctices
in
wherever
the
international,
they
tradr
p-e
is
nrocedure
TTO
to
down
investigate
oranMces
torial
laid
the
as
restrictions,
the
for
comr>la;nfc"
effects
of such
price-fixing,
terri¬
exclusion,
production
A
discrimination
quotas, technological
misusb of
patents,
trade-marks and cppv-icrM®:
fbp
of the ITO will be limited
mainly to instructing the offend¬
powers
As
publication of the facts
regards
services
of
e*
or
:
exhaustible
re-*
.
International Trade
Organization
<
-
(Articles 71 to 91)
("Chanter 7 sets opt the structure »
and functions of tho ITO (except ■
for settlement of differences) i:
Section A—(Articles 71 to 73)
Jays down the conditions 6* mem¬
bership and provides for the ad¬
mission of separate customs torriand
United
Nations. Trust
Territories
under
certain; condi¬
Art)cle
lists
69
to
those
ITO
is
to
comprise ,a' Con¬
Executive
an
establish;
Board
the
as
ITO
There is to be
Director General and staff.
Section
details
B—(Articles
to
of
74
.
to
a
;
77);
composition, sessions,
officers, powers and
procedure,
duties
in
The structure of,
such; Commissions
may;
addition
functions: specified
other Chapters.
ference
the; main
in
the
Conference.
member will have
Conference.
one
Each
vote in the
,
,
Section
C—(Articles 78 to 81)
details the composition and pow¬
of the Executive Board.
The
bosrd will consist of 18 members,
the
to be selected
partly as represent¬
ing members and customs unions
Article 24.
ITO
of chief economic
to
authority
Fund
are
defined
in
The ITO is obligated
accept all statistical and other
-
will
have
for
only restricted
dealing witn com-
;
f'sheries, migratory ;
CHAPTER 7
The
ers
such
transportation, insurance and
j
birds and wild animals.
the
principles of the Char+er.
r
commodities
functions of th^ ITO.
oKH ernfpd
pre
under state-.:-
scarce
conservation
sources
tions.
(Articles 46 to 54)
Members
*
and-to- agreements eonre^^d with a
torie®
Busi n ess" Practices
with
commercial services of banks, the
Monetary
-
dealing only with: fair dis-^
tribution
pfev*er?1
ing member to correct the abuse
and
;
ments between one exoortinf end *
one, importing countrv, to agree-I
-
w;th
and to
Working arrangements between
commod-
tradingy^ran^ments.^ to agre&t
'
45
discrimination principle laid down
the- ITO
the appropriate
modities1 dealt
of countries is also
pro¬
in Article 21.
i
in
.council.
of
tariff and other
commerci3! .restrictions betyeen
concerning
ber applying quantitative restric¬
tions
for
balance-of-payments
such
a
Un¬
development of multilateral
this,.
Chapter.
Tbev allow fpr meas¬
otherwise inconsistent with
trade.
A member may^ to safe¬
its external financial posi¬
tion, restrict the quantity or value
itv
If;this f°ils, they
action allowed in the event will be referred to the ITO.
K
of concessions under this Chester
Ther main exceptions; to :1he
resulting ir» a sudden flood of i: Charter directlv relate to
pom
unstable situation may.
.Articles 42 43
44 deal
harm the position 6f other mem¬ theterritori a 1: apo! icgt ion '•?<# I
bers
tied
gency
an
mum
arrangement fulfills
insure
is
any
economic
must
It
strictions must promote the maxi¬
will, however, be given
automatically if the new prefer¬
the
payments.
re¬
new
conditions
safeguard the balance of
The
approval
ential
restric¬
and
two-thirds
a
excepted.
with
(Article 15).
informed of
rangements and
by
deals
til March 1, 1952, ITO approval is
not required.
But members who
discriminate in their import re¬
development
construction
tions to
also
are
21
•
of the for¬
mer
matic
schemes
Article
not con-
w*r" the commercial polons U1?der the Charter)
^
and
trol
recognized that
while it is primarily the
responsi¬
negotiations
bility of each member to maintain
through
rangement,
Reconstruction
Reconstruction)
protective
are
(a) contiguous territo¬
ries among the
parties to the ar¬
(Articles Eight to Fifteen)
Chapter 3 (Economic Develop¬
ment and
of
such ".as
nction
same
;
particular
these
CHAPTER 3
Economic Development
and
as¬
are
:
Article 6 (Safeguards for Mem¬
bers Subject to External
Infla¬
tionary
nn
bal- '
ance-of-payments difficulties for
other members, which would han¬
dicap them in maintaining full
employment without resort to
of
form
A
Where persistent
maladjustment in a member's bal- !:
leads
in¬
branches of agricul¬
or
the
re¬
where
change agreement with the ITO.
price
If
mem¬
balance of pay¬
unsuccessful,
the
ITO
foreign exchange. The(-will refer such complaints to the
ITO may require non-fund mem¬
bers to enter into a special ex¬
25
practices.
j
other countries.
ance-of payments
for
■
measure*
j
wUhta'its''o£T\
through
appropriate to
its
provide
^cognized
and
mand
ential systems are allowed to
of harmful
„
pr relieving of a criti¬ port ; formalities, marks of;origin, bf workep. out bv the countries f
shortage of food. Restrictions, trade regulations anH trade ter¬ especiallv interested through decovering agricultural or fisheries minology.. ;;This section alsb pro¬ fined procedures.
th®3
products needed for the enforce-, vides rules covering
.Disputes ari«mg out of control ;
anti-dump¬
economies of the mem- merit of internal
a greem ents will normally be set- 1
government cen-- ing and countervailing duties.
to
employment and
a
steadily growing de-
and
in
™Sasures>
earn
each
action
to
opportunities
reconstruction
*
(Maintenance
iDiovment»
Employment)
will
win
rights
undertake
industries
ture
3
these
,
other countries.
Under
to
duties,
re-; in general
invest¬
sistance to economic
development
all
of
future
The need for governmental
Charter, including the ex¬
pansion of
international
trade,
well-being
and
,
of the
the
the
adequate security for existing and
future
investments.
They also
agree that it is desirable to avoid
discrimination
between
foreign
investments.
necessary condition for the real¬
ization of the general objectives
for
have
vestments acceptable to them
and
the
alone but is also
national
or
also
Subject
reasonable
unemployment and
underemployment is not of do¬
and
existing
members
Activity
concern
interference in
affairs
Members
ments.
*
(Articles Two to Seven)
mestic
not
ownership
of
that
is
right to state, in just terms,
quirements as to the
CHAPTER 2
declares
reconstruction.
have
the
right,
they
foreign invest¬
ment.
commodity policy.
2
internal
mem¬
importing and exporting rules
formalities. Existing prefer¬
and
and
extent and upon what terms
will allow future
cial policy, business practices and
of
and
reconstruction.
policies, and to determine to what
employment,
development, commer¬
Chapter
economic
investment
other
respecting cus¬
charges on imports
duction of tariffs and to the elimi¬
interna¬
for
used as a basis for
trade in the fields of
avoidance
with
and
foreign
their
(f) To facilitate the solution of
problems relating to international
Employment and Economic
deals
members
that
retard economic progress.
economic
12
investment
sup¬
to
and exports or on transfer of pay¬
ments for
imports and exports
skills,
without prejudice to
existing in¬
ternational agreements, to insure
reduce productive employ¬
or
toms
devel¬
reconstruction
enterprise,
development
measures
which would disrupt world
merce,
economic
as
treatment
bers in all matters
the
It recognizes that public and
pri¬
vate internatioal investment car
be of great va^ie in Dromrf'->?
discriminatory treatment
international
the
development
barriers to trade and the elimina¬
tion. of
with
war-devastated
Article
and
in
nation
Economic
capital, arts or technology
plied by other members.
ment."'"-
the reduction of tariffs and
with the
well
as
injuring
develop¬
and
between
Council and
promote
,
ing facilities for development or
reconstruction, nor to take action
facilities
productive
are
nomic
the
to
access
ucts;
which
equal terms,
on
Tariffs, Preferences,
and Internal Taxation and Regu¬
lation—Under Article 16, mem¬
bers agree to give most-favored-
plaints
direct negotiations between
bers
is
reserves,
ments and
Section A.
■
There
countries.
Members undertake, under Article
11, not to impose unreasonble im¬
pediments in the way of obtain¬
enjoyment
the
to
opment
ment.
(c) To
productivity.
cooperation
bociai
ITO
the international flow
for productive invest¬
encourage
of capital
of
be
etary
(Articles 16 to 45)
members and
countries
those
of
19)
page
Thursday, April 1, 1948
facts presented by the fund. This
includes matters concerning mon¬
Commercial Policy
construct industrial and other eco¬
nomic
resources
ana
to
raise
omy.
particularly
Up Charter
'
CHRONICLE
CHAPTER 4
lull Trade Organization Sets
anced and expanding world econ¬
FINANCIAL
&
partly
by
a
importance, and
two-thirds majority
^
•Volume 167
vote.
Each
will have
Number 4686
member of
one
vote.
THE
the board
ernments
If bv
;
•
only
set
needed.
Commissions.
up
in
"
deais with other
organization pro¬
vision.
Under Article 86 (Rela¬
tion
with
the
United
\
should
;
ment
of
will
be
directly
in connection
political matter brought
Lefore the United Nations in ac¬
with
United
the
provisions
Nations
Charter
storms
The
great
challenge
by
our
Charter
8
•members;'
;
If
,
i '
provides
-
that
the
or
•
Charter is
impaired,
cernecl
•
■
the
member
first
may
resort
to
to
work.
con-
iective
con-
one
sultation
or
arbitration, keeping
informed.! Failing settlement; the dispute may be referred
: to
the Executive Board
.(Article
;94>, with provision for-appeal to
vthe Conference (Article
95): The
ylTO may, under Article 96, re-
was
ner
to
course
ter.
have
procedures
other
Char-
Members
•without
prejudice
international
agreement,
resort;
to
unilateral
ob-(
our
and
everv
i
4
"
w'il
be
be
as
as
it
the
of
of
Michigan said in
Leg;slature
"The true
lic must
free
a
freedom
of
The rules of procedure for set-'
of
differences will be
,
1
established
?
:
by the ITO.
;
CHAPTER 9
General Provisions
.
,
.
r
■j
•
:
f
,
$48 Million in Feb. i
r
(Articles 98. to 106)'
p
;
i
*
Nothing in the Charter will pre-,
elude any member from maintaining economic relations with
members
bers
and
(Article 98),
recognize
but memthat arrangements
.
■
;
-
•;
.
:
.
conduct
trade with
non-members
in a way that would
injure trade
with members should be avoided,
The problems arising out of relation* with non-members will be
Article 99 lists the general exceptions to the Charter. No member will be required to give in:
formation, that
it
considers
No member will be
vented
action
from
it
taking'
considers
to
traffic in
or
pre-
necessary
fissionable
arms
in
materials,
in time of
•
.
,
war
otner emergency in internationai relations, or in carrying out
agreements made by or for a mil-
;
itary establishment
pose of
for
the
pur-
meeting essential require-
j ments of national security. Noth.
ing in the Charter will override
t
the World War II
j
ments. '
;
.
settle-
100
to
102
deal .with
amendments, review of the Charter, withdrawal and termination.
The
force
of
1947.
the
State
of
New
deposits increased by
compared with a
in February,
as
This marks the 67th consecutive
in
Charter
will,
enter
into
(Article 103); 60 days after
ratification by a majority of gov-'
research;
ex-
war
the
decentralization
of
guard against
over-concentra¬
an
industry
to
which
contracts.
war
of
Maintaining
this
this
our¬
constant
debit
^Security
should
job.
be
in¬
democratically
tolerance.
Must
This
and
Prompt enactment of such a
mobilization plan is made ever
more pressing in present circum¬
stances. When the last war broke
out
large proportion of
a
re¬
our
source®
were not being fully uti¬
lized. Plants were
idle;
which
sizable
cotton and wheat.
to
start
has approximately 51%
savings deposits in the sav¬
y
gain
savings
accounts, totaling 20,934, is above
the increase of 19,953 during the
month
a
year
ago,
and
the
vested
vantage is ours, in materials, and
access to all the far reaches Of
'in
the
disciplines
the
country
as
a
to
war
power,
but
prices.
All
wait
us
things
when
the emergency comes.
This
are
mobilize
enough of these
apply them in*telligently,'- vigorously
and
promptly to achieve the stability
in the world which lasting peace
requires.
That is the choice before this
whether
these
to
resources
clamor
may
see"
and
and above all in the spirit¬
ual strength of free men. We have
yes" today to a ceiling on
wages; business !to a ceiling on Us
profits, farmers to a ceiling on
really necessary
and. to
country today. Shall we mobilize
"wait
and-see" habit, so
ingrained in our natures,
must be broken, if we are to use
America's
power
effectively to
now, tor peace? Or, in letting slip
precious time, will we leave our¬
selves no alternative but to mobilike for war in the future?
v
slack today
thing..
Union.
is
It
my
hope
with
understanding
yet be attained.
may
the terrible scorching
war,
the
that
against
the
The issue is one of law .against
Because of
of the last
We should
in
continue
Unless
There is
in materials, fac¬
the
any¬
government
the
powers,
shall
same
confu¬
threats which justify
the
guarding against possible
Only by standing guard
do we gain the time to continue
seeking peace.
measures
Financial
KANSAS
Chronicle)
an
CITY, MO. —A. H.
Bennett. & Co.,< 1004 Baltimore
Avenue,
has
added
John
L.
draft and
Blocher to their staff.
be
prepared,
fronts.
it
other
If
we are
be
must
,•
on
to
all
moral
Without
principles.
those principles will be
left to find their sad expression in
power,
quate. It would be useless to take
the precious time of our young
to train them insufficiently.
protest by suicide.
men
I
gravely doubt that the six
provided in the legislation
before
this Committee is long
J. Thackston in Knoxville
months
KNOXVILLE, TENN.—John A.
is conducting an in¬
vestment business from offices in
Thackston
the Knoxville Bank Building, un¬
der
the
firm
thing less than a year, I fear, is Thackston &
As part of any Universal
tary
Training
should be
of
name
of
John
Co.
A.
?
-
than nothing.
With Flynn & Levitt
Rehabilitate Our Youth
economic mobili¬
.
democratic
the
was
country, for we alone have
the strength to give vigor and life
to
If military training is adopted,
the training period must be ade¬
zation plan which can be put into
effect without delay.
law be per-.
need of construc¬
leadership than today. That
leadership can come only from
Don't Waste Training
require the immediate
of
in
tive
(Special
•
The
power
world in greater
failure.
worse
A, H. Bennett & Co. Adds adoption
force without
Never
while
inflationary havoc of enough. The minimum time should
sqdden
and
full
rearmament at least equal the minimum re¬
would be ghastly.
quired for basic air training. Any¬
The
our
by law, with all
mitted to dictate its slavish terms?
even
and
re-enacting
use
peoples free to choose how they
are
to
govern
themselves?
Qr.
striving for
peacemaking,
we
support of rule
wants to guard
dangers of the past
the
Shall
force.
and to make certain of the future
success
freedom in
to preserve
these critical times.
necessary
an
Soviets
everyone
in
able to act quickly, with full
sion
:porary restraints and disciplines
this
burst upon us
tories, food, labor, prices, in
,
whole.
possible
this slack first and
rcurtailed immediately.
mobilization
for
was
future, the civilian econ¬
would have to be drastically
were
fo
world, in industrial capacity,
technical skills, yes, even in man¬
to say
Let
and
spiritual,
peoples of the
-
free
world hold, are vastly superior to
those which the totalitarian can
command. In every field the ad¬
reason.
economy.
war
count for the State of
,
It
mobilization for
up
brings total accounts held by sav¬
ings banks in the State to a high
of; 7,152,687.
The
average
ac¬
$1,384 is in
marked contrast to the $1 326 of
a year ago and, at'the same
time,
is well above the $968 average
unemployed;
there
stocks of
near
omy
no
mil¬
*a*e.r cutting mto the nor¬
.-Were
in
some
carryover
mal civilian
ings banks of the nation.
February
our
by taking
now
(Soecial
the
they would have to accept in case
of another war. Labor may refuse
their
military
which
habit may seek to block an indus¬
restraints
even
nomic,
trial mobilization
the
r
v
be said again "all we have to fear
i
is fear itself." The resources, eco¬
Change Our Habits
same
;
there is no reason for panic
fright. In fact, it might
come,
or
it for that
resistance of
greater
.
,
!
someone's
oppose
with
.'
.
While the time for decision has
Resources
Enactment of Universal Military
Training would be a departure
from established American habits.
Many
and
'
Use Our Strength
'■
.
from
re¬
might be entrusted to the
it
Coming
together.
different
segments
of
society,
they will learn to understand one
another, to treat one another moire
credit
and
commitments and
our
"
-
different parts of the country and
attempt.
ventory,
•;
Democracy Encouraged
live
to
guided by the
nots^wrecking
mental
These young people will learn
basis of settlement with the Soviet
were
:,
activity.
,
selves, for that would defeat all
we
as
.
;
inflation.
alized
savings banks
experienced a net gain in
savings, bringing total sav¬
ings deposits in the State to $9,904,010,410.
-The State of New
account
be
must
we
do
•
new
same
of
should
they become
necessary. In whatever we under¬
take
I
Military
drilling in a
Through the interwar years I prevent war.
repeatedly urged that such a pro¬
'Th? greatest single necessity in V
Law Against Force
^
be placed on the statute
the world today is for America to
books to be ready to function in
For so-called moral or "paci¬
make up its mind where it stands,
case war came.
It was not done.
fist" reasons, some would deny
so that the other free peoples on
The result was a fumbling and
>
'earth know where to rally.
Un¬ the use of power, as being evil
faltering in the mobilization which
less we come to decision among .in itself. That is to invite war,
unnecessarily lengthened the re¬
ourselves, we invite a scattering even as it encouraged Hitler's
cent; war, cost many lives, many
of our friends and another -war. war. Others will protest that the
extra billions. Much of our cur¬
"measures I have proposed depart
rent inflationary troubles can be
We Still Seek Peace
from "free enterprise" and are
traced to the piecemeal price con¬
:
methods of the police state. Such.
Knowing
where
we stand, I be¬
trol law which was adopted when
lieve, would make possible re¬ people value freedom low indeed
the war began, a law which legr
to
be unwilling to accept the tern-.
newed
endeavors
to find
some
have
The
re¬
deeply
We Have No Slack
were
of all
men
on
draft; the organization
pools of, labpr of all kinds and
lions
York
in
other
promptly,
necessity
obsolete.
Universal
physical training, in disci¬
pline, in self-control and in other
traits, so valuable in every field
sources, so that corrective meas¬
ures and controls can be applied
.
month
and
or
uniform
$46,483,691
>y:>-\
.Articles
-
peace
of
con-
whatever
for
Net
$48,385,342
trary to its essential security interests.
opened, it was re¬
the 131 mutual sav¬
banks
gain
or
-
ings
with non-members to obtain preferential .trade
treatment
or
to
relation
-
ported
to
up
plan. Different
group? may refuse to agree now
a
liability;
accounts
York.;
.studied further by the ITO.
i
.-Savings in saving banks during
February, 1948 exceeded gains of
a year ago both in dollar deposits
non-
supply;
add
become
soon
envision
and
gram
Savings Banks Report
Deposits Gain of
:
be lacking or
work-or-fight
may
useless
•
-
,
of any kind
contrary to
the Charter provisions.
tlement
short
our
institutions, but also in our ability
courage to defend and pro¬
measures
'
which
in the
and
tect them."
of
is
Training as mere
for manual of arms. I see it
responsibility
with
could be a strategic
up-to-date surveys of
underground industrial facilities*
1863,
Reonb-
consist, not only
and
mobilization
will
someone
see
wartime
tion
mes¬
in
glory of the
beneficence
system
cover—a
to
materials
money,
National
should
them, unless State
prepared to under¬
are
.It has been said that it
a constant inventory;
these programs and
all
Board,
mobilization
a
Iplanfi? in stand-ft# readiness
As the wartime Gov¬
what
outlined what such
Panded intelligence and informa-
85 years ago:
over
of
•*\ ^'.Professions and sciences;
i
our
like
with
charged
sources,
?t^P.^vMs;;,.retention .Of
security
national
preservation
the
to
sage
our
concurrence
intensified scientific
mighty force for the
a
institutions.
economic
nation
our
to rehabilitate
authorities
not
should
At different times, before other
committees of Congress. I have
in
v
felt, just
I
sheet of
terials
goes
dunng the war, in everv cor¬
of the earth, and its strength
and
to1
not
reach
each
of American produc¬
nower
ernor
undertake,
to-any other
of
priorities, allocations, and ration¬
ing
powers; a
ceiling over all
prices, wages and rents, to pre¬
vent
inflation; taxation to take
the profit out of war; the accu¬
mulation of strategic raw ma¬
to work.
few, if any, substitutes
protection of
also
*
serv¬
take the task.
strains upon our economy.
Congress.
plan:
,
re¬
envisaged in the
gnv
than those
to
will
as
work.
then
will
of ITO activities,
In dealing with complaints and
settlement of
differences, mem¬
.
a
industrial
inclined to want
_
The
tion
scope
not
•
sleeves and
l'or hard
/legal quest'ons arising within the
undertake
to
economy..
takes off his coat; rolls
are
1
bers
We
us
There
quest from the International Court
of Justice
advisory opinions on
,
.
program should be en¬
acted into law now, with the un¬
our
seem
onlv
of
his
"o
the ITO
T
Such
overcome
"s that few
being nullified
■
mobilization
lull
free economy;
are
the foundation of America's
strength. The trouble right now
benefit accruing to it
directly
indirectly, implicitly or explic¬
itly, under any of the provisions
S'-
better to take them into the
ice and, as part of their training,
potential workers from
to train men in handling weap¬
productive labors.
Increased ar¬
mament needs will add to
the ons, since the particular weapons
commitments
whole.
one
Supporting
production —
many of the
confronting us today*
shall
tribution. under
any
inte¬
Get Ready to Mobilize
work, production and dis¬
considers
; cr
'.of
grated into
■V,-.
increased
problems*
to their communities. It would be
thousand
of
elements
President with the
we
by
simply turning these youths, back
maintaining
need today is for in¬
production, individually
collectively.
If we keep our
straight ahead on our ob—
past should not be perpetuated by
varied
its
of
military trainingeven without
military training—
dis¬
must be a ready-to-go plan for the
;
/■.
can
the impact
must watch
must be a
great
■
-
member
any
procedures
free
a
An
can
The neglects of the
be corrected.
without
entered upon.
become
creased
iective
complaints
under
has
war
and
eyes
(Articles 92 to 97)
for^ dealing' with
we
All
derstanding that it would come
into effect by proclamation of the
The
,
strength
even
partial mobilization being
we
the
today,
all
disaster. But
own
war.
our
capacity
CHAPTER 8
r.
By
war,
of
is
it
adequate defense
balanced defense, with
become the in¬
can
our
own
oroduce
/
Settlement of Differences
r
to_al
America's strength is bound up
witfc
its tremendous
Director General
the legal status of
V
augmented.
tempests.
today is to-
sipate fear.
the
and his staff,
the ITO, and contributions.
.
we
strument of
,
of
fear
wn
.with relations with other organizations, the international respones
i
and
"ace the future unafraid.
subject
ITO Charter provisions.
Other articles in Section F
deal
sihilit
rely on any single measure of
defense, on the atom bomb, on an
air
force, no matter how greatly
Let us not forget that
pilots gain their reputa¬
fall within the
scope of the United
will not be
We would deceive ourselves
war.
to
Progress.
skillful
of
from
to
deal
Factor
as
As
The demands upon
our economy swell rapidly—aid to
tions.
Europe, to Turkey, 0 Greece, to
It would be a tragic illusion, of China, to the occupation areas.
to Selective
Service
course,
to believe that military Returning
would withdraw several hundred
training, by itself, can prevent
application, the
authenticity of texts.
tion
I
106
potential aggressor
into attacking this country or in¬
to overrunning other peaceful na¬
encourage any
territorial
will
.Nations and
.
105 and
ical and mental defects which
Constant Inventory Needed
(Continued from page 2)
Never again do we dare permit
our own lack of preparedness to
(Continued from page 16)
a
cordance
the
104,
More Production
/it
member
with
Articles
Railroads
on
ters.
:
ratification
the
not
attempt to take action
involve passing judg,essentially political mat¬
Any measure taken by a
'
.
the
governments
If
annexes and
'that would
•
force,
20
with
Nations)
members recognize that the ITO
•
signing the Final Act.
1949, the Charter is
Charter is not in
Section E— (Articles 84 and 85) force by October, 1949, the
gov¬
lays down regulations covering- ernments that have ratified it will
the Director General and the staff. discuss on what terms
they desire
Section F— (Articles 86 to
91) to bring the Charter into force.
:
(1451> ' 33
CHRONICLE
April,
Section D—(Articles 82 and 83)
gives the Conference powers to
not
& FINANCIAL
COMMERCIAL
some
program
Mili¬
to
The
Financial
Chronicle)
CALIF.—Aus-4
there ,tin Gatlin has become connected
compulsory means
rehabilitating youths with phys¬
LOS ANGELES,
I
I
with Flynn & Levitt, 411 West
Seventh Street.
36
THE COMMERCIAL
(1452)
The
the
(Continued from page 19)
United
and Korea.
This
a
The budget for 1949 illustrates
this point. The effects of war and
our efforts to prevent a future war
account
for
budget.
Only
79%
of' the
will
1939
were
;
f
in
Only 29% of
items, while 71%
.
cost of aid we should
ac-;
;
;'»•, vVi
•
with
future
a
reference
is
war
to
the
than
It
destruction, distress and
nomic
dislocation
the world.
the
in
of
mainly
alternatives
invest for
to
not
The
world situation is dynamic. While
/we have tremendous power to influence
the
course
easy.
of
-
relief
to
as
First:
We
na¬
future
our
Second:
<
'
We
could
relief
namic
;
.
'
situation
the best
stop relief
Europe somehow
regain economic and po¬
litical stability without our aid. /.
We could take the op¬
future
must
we
sight and statesmanship
vide.
>'
.
In
can
pro¬
the
face
Of these
conditions
—which are not matters of politi¬
cal opinion, but the facts of our
i
present
look
world—it
backward
is
fatuous
find
to
to
base
a
for governmental operations.
The
budget of 10 years ago cannot be¬
the budget for today. < >
come
Prevision for Substantial Public
Debt Payment
•
.
.
*.*.
,
\
-
) The 1949 budget is the third
consecutive balanced budget. If
,
,
:
will provide funds for
;
tial payment
For
.
our
on our
substannational debt.
purposes
tonight, how-
a
ever, it is important to go further
than the common meaning of a
}
familiar
alternatives.
at
with
the
made among
was
As
de¬
as
1 "balanced" budget in which dollar
income
outgo.
The
is
compared
/' ;7
budget for
—be it
any
general store
a
tion—is
with
/•/'•'
.,
dollar
.7.77 7.7/;
enterprise
or corpora¬
of expressing, in
terms of dollars and cents, the
Toperating plans of that enterprise.
You recognize that the real sig¬
nificance
of
any
budget is in
terms of balanced plans—the rel¬
ative emphasis to be placed, for
/ example, on production' and research, sales and advertising, plant
expansion, and many other faca
way
a
*-
*
*
; tors.
This balance must be struck
"in terms of the policies and goals
1
of the enterprise—in terms of the
•
economic
*
market
conditions
easy
are
essential
the
Western
States could
the
on
these
a
in
had
result of
international uncertain¬
ties
and
to
be
revised
^continued
Instead
was
of
a
as
drastic effect
a
and availability of
materials. 'Thus, procure¬
has
been
curtailed
given
future-years#
for
1949
high priority
7*44 ;
i
a
-
fecting
national
defense
empha¬
of
ment
we
develop¬
National
our
believe
now
long-term
Defense
But its scope and
program.
oper¬
saving, ^the ating, details must be reconsidered
faced with depart¬
when
firm
decisions 7have
been
7
1949.'
even
.
and
po¬
of
leaders in
ment
as
and
the
to
our
program
for international
recovery.
combined judgment
the
out
of
govern¬
value
of
our
,
European recovery the essen^tial budgetary policy involved two
in
his
Budget
mes¬
sage when he said:
'"The budgetary implications of
failure" to achieve recovery in
;
elements.
First, what could this Europe and other * crucial areas
afford; second, what were deserve additional emphasis.
Europe's needs?. These budgetary Should failure of these programs
countrv
decisions were worked out in what
was
result in further expansion of to¬
talitarian rule, we should1 have to
truly magnificent coopera¬
a
tive effort.
•Wherever possible, the decision
made to postpone expansion
restrict
expenditures.
The
was
/The President clearly stated this
relationship
aid
to
reexamine
security * position
Probably no other/program in and take-whatever steps'might be
our
Nation's, history, either do¬ necessary
under^ the ^circum¬
mestic or international, has been stances.
The costs of added mil¬
subjected to such searching anal¬ itary strength, if Europe should
ysis in its formulation as the Eu¬ succumb
to
totalitarian
rule,
ropean Recovery Program.
This would far exceed the costs of the
our
;
,
effort included the
work Of busi¬ program of economic aid now be¬
leaders,
legislators,
labor fore Congress."
"'
v;
r
7
7
representatives and government
The
decision : was 7 reached
to
ness
■
,
and
President
keep
had
a
firm
desire
tc
governmental
expenditures
in 1949—a year of strong infla¬
tionary pressures—at the lowest
point consistent with required and
economical
tion.
>
standards
The necessity
itary
of
opera¬
for heavy mil¬
»
.
,
7
years ago.
history,
development
and
material
Let
■
our
give two brief illustra¬
me
tions:^
of
resources.
-77,7'!-•
the
budget for public works.
enter
we
fiscal
1949
.
As
construction
in
-
us/Our veterans
will
.
personnel./ I
am
work of the Harriman
balance is not merely a relationship of receipts to expenditures.
In the 1949 budget the significant
balance lies in properly
relating
three
broad
tional
responsibility,
and'
areas:
/ ,
The.first
national
domestic pro¬
our
grams.
interna¬
our
.
our
,.
area—our
international
responsibility
will cost slightly
than $7 billion in 1949. This
is about 18% of the
budget. The
>v>. more
great bulk of
this
amount
is
for
The
pean
expenditures of the
Euro¬
budget^—about 28% of the totalRecovery Program, as sub¬ to provide for the minimum re¬
by the President,.are; esti¬ quirements of the National De¬
mitted
mated
year
at
$4
billion
1949 and
Atfer
that,
$5
they
in
the
billion in
should
and
cease
after 1952,
liquidation expenses.
How
can
fense program. ?
I should like to
1950.
decline
except
7
evaluate
we
fiscal
ticularly
for
1949
comment
'
on
tions for future years.
As progress toward
of the armed forces is
recovery?
more
is
only; 2% 'of
our
estimated national income of $210
billion/*It'is
;V i'O
u,4i
slightly
U/U 7.<
•
will
.
of
starts to
high
unification
achieved,
a
possible.- Secretary Forthe » National
Security
a
minimum because
construction
labor
costs,
77
In
from
our
force—atomic energy.
new
Truly,
it has been 100 .years
since 1939. >7 7:
hold, also, in our national
strength and the firmness of our
will
the > priceless /ingredients;/
We
from which
can come a
world that
is safe for our children and
children/.
7
their
v/;/7/7/;7,
If there is .one thought I would 7:
like to leave with you tonight, it
is this: the budget of the United
should
States
whole.
It
is
considered:
be
as
lated to the effects of
771
resolve
•
/
;•
to
war
prevent
and our /
future 7
a
V':V;77/77;7 ?-,::/"■ 77;<! '7'■
wish that I could say
that the
;
problems we faced in framing the
1949 budget will not have to be
/
in
1950
yond.r.N'o
facts
statement.
But the
examination
I
make
one
world
be
of
involved.
factors
the years
be-7
,
that
thing cer¬
position is
constant;
the; issues
and
77
;
/
have
spoken tonight/ gentle-/
ment, in a spirit which(I»know /;
governs '• your
consideration/of
public affairs—a spirit of reajl-*-
in
It
7
determined that $2.6 bil¬
lion would be required in 1949 to
-
was
maintain
ects
the
of
already
less would
minimum
econom¬
construction
under
mean
on
way.
waste
proj¬
To
and
do
inef¬
the
have
future
a
firm
this
country)/ I
that
we
forging, through democratic
esses, a balanced operating
which
in
truly reflects
our
are
proc¬
plan
position
the world today.
I
have
equal
ing
vestment
foundation for
public works.
of
faith
ficiency and would further post¬
pone
the benefits from • our in¬
in
:
(re¬
ism, of seriousness, of great faith
,
.
in possession of the
honestly
can
/.
and
man
anti-inflationary
measure.
7
a
reflection, in dol-7
lar terms, of our national policy—7
a balance carefully and painstak7
ingly struck in the light of the,
world situation today. More than;,
three-fourths of this budget is re¬
a
and material shortages—and as an
ical rate
efficient' utilization of funds
be
more than restal,y 1
/'
J V, i\~
'..'.ai.j-i:
par¬
some
investment of $4 billion in world
It
;
aspects of the
program because of their implica¬
:
this
T
new
7
pop-
18.million; our/
$47 to $255
hands, for a short/;"
time, rests the grave duty to con¬
vert
to
peacetime benefits that
tremendous and little-understood 77
debt
billion.
must
.
.
been
than
more
national
there
;
un-7;
?
have
1939
ulation has increased from 4 mil¬
faced
;7;'7
Nearly $3. billion is included in
K^>77-.777
Responsibilities
;:
of
dreamed
war.
and
77,■
.
.
limit expenditures for the conser¬
human
:
.
nation, too, which has 7 >
played a major ;role in waging
and ^inping. the greatest war in 7 ;
firm
vation
has
income
7 This is a
that
enterprise
J
•
from $70 billion to $210
billion.
Our employment is the
highest in history; our industrial
production twice what it was 10 77
will be under way on $12 billion
the
national
—
referring to the hold defense expenditures to their worth of, projects. ? Congress has
Committee, 1948 level in view of our vigorous authorized an additional $9 bil?
Three Broad Areas
the Herter.
Committee, the Krug program to achieve more stable lion in projects on which work
Likewise, in the case of the Committee, the - Council of Eco¬ world economic conditions. Eleven has jnot yet started.
For thrc?
Federal
Government, 7 budgetary nomic Advisers, and many others. billion dollars is included in the years, budgetary policy has held
defense
.
national
Our
1939.
tripled
our
which
of
.
tion has increased 14 million since
and international expend-*
reinforced the decision to
itures
,
.
decisions
about
operate.
the
on
policy which are reflected in the
budget for 1949.7 I should like to
emphasize that the factors which
lion to
what
„
litical'stability#
Given
damental
be- the
.
;
deter¬
was
forward
peacetime development of atomic
energy.
There are provisions in
with
They would have led to
The third broad area in the 1949
greater costs in future years. budget,
our." domestic
program,
In addition, it was necessary to had to be
weighed against inter¬
will yield a very great return to consider the
relationship between national responsibilities and - na«
this Nation by furthering world¬ our national defense
requirements tional defense requirements. \
;
and
hand, it
move
line
,
recovery
to
will
proposals
if reached opJhese matters/^/>'
which,
adopted, would have added more
than $2 billion to defense costs in
Our Domestic Program.
••
economic
On the other
mined
forced upon
mental
of
taking. acalculated risk.
are r*assuming/, that ." dollars
wide
over
sizes that 1949 is a/year of transi¬
tion.
The actions taken are in
a
occupation
have
77Each of these considerations af¬
This early
estimate
of
countries.
recovery
price
but must be
es¬
possible reduction of at least
demand and
the
to
European
Heavy, stockpiling by the United
ment
expenditures for 1949.
palliative.'*m;,are,
billion dollars in expend¬
the next few years.
a
tain
under
;
and
guide posts to
cost of maintain¬
no
billion dollars in national defensa
„
,
<
in¬
nearly
ex¬
wartime weap¬
terms of world-wide
war
to the size of the defense pro¬
needs.
We
These
now
are
number of determinations
a
President
course,
are
resulting
tablished certain preliminary pol¬
, Based
on
these facts our
first studies last spring indicated
rather than
we
least
itures
'occupation of former
emerged from the
should provide a
making this choice
wartime stocks.
hausted and many
ines¬
,7:/7/
that "any assistance that this gov¬
ernment may render in the future
mere
direct and
icies.
at. the
tary Marshall's statement at Cam¬
bridge last - June when he said
a
.
responsibility
were
made
continued and costly relief. 7
? •
This was the essence of Secre¬
7 In*
a
these gram, and, the President bad
.
its
ventories
determine; the
ing an adequate military strength.
Yet
the
Congress in; 1948 had
establishment, of Europe as a go¬
ing concern; without the rieed for*
cure
is
and
areas.
ons
we
there
The President. chose
reconstruction;
item
our
make.
its essential pattern and balance spent now to promote the
recovery
retained by the Congress, Jit of free
peoples in Western Europe
;are
^
are
cision that
to ', aim
■'
:
You
follow
that wisdom, fore-
course
is
•
'
portunity to invest in the ability
events, we cannot always predict of 270 million
productive people
shifts and
changes which /have to help themselves recover
/equally great power to influence through a planned and
coopera¬
us.
Increasingly, in world affairs, tive effort.
\7777':'"''/777;,' /;
inaction is as far reaching a pol¬
Cost of European Reconstruction
icy decision as action. In this dy¬
,
and
force
.
would
Finally:
armed
dent had to deny requests for new
starts which would have added at
.
needs,
could continue
and gamble that
is
answer
the
Of ne¬
have
been
funds
indefinitely.
and national
peace
to
became clear.
course
security?
-
these
turned !
It
This
budget raises the basic
question of today—how much shall
The
cessity,
it
Europe.
goals.
Against tins background, three
recognizes the will
recover and to cooperate which
still exists among free peoples. :
we
of
Western
modern
a-more
balanced
•
obsolete.
As they
;
are
replaced, the cost for national de¬ influenced these decisions may be 7"
so altered in the coming year that •'
fense will
rise.'; •• /•./•;"
7- ;7;/;-7.;
enemy territory. TWe must assure
The size of our national defense they cannot hold for 1950. How¬
conditions in these occupied areas,
ever, these decisions represent the 7
particularly in Germany, which budget will be substantially * af¬ careful and considered
judgment
will permit a minimum of occupa¬ fected by the adoption of univer¬
of the President, Secretary Mar¬
tion forces and guarantee the ef¬ sal training.
Although this pro¬
shall,
Secretary
Forrestal
and
fectiveness of European recovery. gram would eventually cost about
other Cabinet officers in the light
For the past few moments we $2 billion annually, this will be
of facts now available. They will
have been examining the charac¬ partially offset by reductions in
move us farther ahead toward the
ter and cost of our $7 billion in¬ the size of the standing forces,;? ;.
Another important segment of solution of tomorrow's problems
ternational program. These inter¬
than any other decisions we could
the National Defense
national
program is
expenditures
must
be
make at this time.
7.7.; ;7;7:-^7 •
weighted and balanced with the the stockpiling of strategic mate¬
The magnitude of our responsi¬
other two large areas in the. 1949 rials, such as rubber, tin, zinc and
bilities and the deepening crisis
budget — namely national defense chromium.
The Congress, in 1946, author¬ throughout the world require that
and our domestic responsibilities.
we
ized a five-year
think and act with maturity
stockpiling pro¬
National Defense
gram with requirements now in¬ and statesmanship.
Let us next consider national volving over $3 billion. We had to
This; is a growing, expanding
defense. The decision on the size recognize,
however,
that
many nation now coming into the full¬
of this program was difficult to
stockpile materials are scarce in ness of its promise. Our popula- ;
from
ery
to
.
two-thirds
those
capable
rather than to longer-term recov¬
eco¬
rest
This
!
$15 billion by
through in¬
organizations, more
tions of
better
on
available
made
toward
ress
to prevent disease
in
unrest
than
more
ternational
recognizes our leadership in the
family of nations.
It recognizes
the
have
we
an
the missions
and programs of the various serv¬
ices.
•
"7 •
'
■ "X
/
Even in the 1949
Budget, prog¬
resources.
necessary
Since the surrender of the Axis
abroad
framed
world.
the
world
•,
in
,
the
exjend.7
engaged
of
■
direct assistance and
be traced directly to the
■effects of war and our efforts to
can
pi-event
;
powers
,.A-budget in which 79% of the
total
of our entire
now
review
about 2% of
or
works expenditures forv,
new starts on di¬
rect
Federal
public works.
In
holding to this decision the Presi¬
1949 will be for
be—to complicate its appraisal by
relief.. programs
the worsening of
situation required
Only $61 million
all public
of military aircraft and the size the 1949 budget for increased ex¬
our
civilian
penditures for the development of
reserve
presenting it in easy stages or us¬ of
com¬
ing complicated ! fiscal arrange-' ponents.-;:- V 7:-.;::a7«7/ new laboratories- and production /
ments.
/./ :f 7f / On the other hand, ' Substan¬ plants7&nd to step up the training if!"
tially higher expenditures will be of vitally ..needed scientists and 7
7:7/ Cost of Occupied Areas
needed in future years to main¬ technicians: ; This
program
will
The other major! international
tain our current military strength. involve expenditures
of nearly "yexpenditure anticipated for 1949
For some time the military estab¬ $700 million in 19497
.'7
7
is $1.25 billion for government ot
]/ 7
I have described to you the fun¬
lishment has been living largely
"Occupied areas and for the relief
*
apparent that
position and of the character and
was
devoted to other government
•tivities.
of
re-evaluation
the budget for that year went for
war-related
•
was
be
however,
European
;
the proportions
reversed.
1949
reduced at least $2.5 billion. While
the budget was being prepared,
de¬
voted to all other activities of the
government.
In contrast,
the
are
a
emphasized*
Through economies
honestly presented to the coun¬ and reductions elsewhere in the
try in its full scale.
There has defense program, it has been pos¬
been no attempt—nor will there sible to increase our procurement
the
completed in the fiscal
year 1948. As a result, it appeared
that 1949 expenditures might be
total
be
spring it
would
*
21%
preparing
number-
.
signifi¬
faced
Board and the Joint Chiefs
Staff
intensive
Our aid to European recovery is
bold undertaking.
It has been
is the
this question posed?
was
Last
our
on
which
1
How
-
the words of Henry L. Stimson.
.
in
of
counting the loss of life, the suf¬
fering and the tremendous drain
■
Thursday, April 1, 1948
Council, the National Security Re¬
sources
1% of $340 billion, the money cost
to this Nation of the last war, not
Japan
to one of the most
budget.
world, it is framed
perfect futility." These are
with
■*
■
questions
President
ref¬
Germany,
figure of $7 billion
answer
cant
to the
erence
notably
areas,
truly great statesman re¬
cently said: "No private program
and no public policy, in any sector
of our national life, can now es¬
cape
from the compelling fact
a
that if it is not framed with
European Recovery Program
and our commitments for govern*
ment and relief in the occupied
States in the world of tomorrow.
As
CHRONICLE
Budget of the United States
world of today but to the
,
FINANCIAL
courage
out
and
our
this
faith
plan
a
that
vision in
will
our
carry¬
lay
>
better woild.
•
,;u
the
yolume lgl
THE COMMERCIAL
Number 4686
FINANCIAL
&
CHRONICLE
(1483)
37
\
the cost of agricultural
are
Food
Supply and Food
ucts such
(Continued from page 21)
that
would
equal 90% of parity—the parity
price for any commodity is one
lion in 1946.
period, by the same percentage as
the prices of things farmers buy.
As the price of these items ad¬
vanced, so did the parity price.
In very
tion costs incurred at the several
of competition for the housewife's
stages of the approach food dollar. It also makes for the
of the raw products to the retail lowest
possible distribution cost
commodity
that has
increased
since the
different
store
base
many
of
foods—which began so many
with the art of canning
—is heightened now by the many
improvements in other methods of
food preparation and delivery,
years
■
T
Our food habits and the amount
also
are
being
influenced^ by our rapidly ; growing knowledge of nutrition.
As
we come
to learn with more con-,
fidence what constitutes a suitable
shall eat different foods
wc
and probably more food m total.
Well-informed nutritionists do not
with those who claim we
agree
the best-fed nation
are
on.earth.
"
Nor do they even agree
well-fed. Too large a
are
of
age
our
/:
,
Pont¬
But
■; ;
the
on
Jj
strongest in¬
perhaps the
.
food supply will
our
American
the
of
ability
buy food.
With m.
creased employment (from 29 m
lion employees in
people
to
establishments
in
uon-agrieult"^
the 193o-oy pe
riod to about 44 million recently)
and with
greatly increased spend¬
able' income
prewar
our
(fro™.
$175
to
$66,(?n 10471)
d
neople eat more food and
b
food
It is t sometimes said
*
ter
.
only so
that the stomach will hold
much and won't take more,
yet in
country we've witnessed a
17% increase in per capita con.'stimption of food since prewar,
and who is to say it has
its limit? ' Total consumption, has
increased even more, since there
has been a 9% increase in populathis
r^c^e
SonTn this
Moreover as
period
spendable income declines food
item
last
the
farm
to
suffer
^s
m-sales
chances
take
In
vote.
all
with
consumer
the
pur¬
processed
form.
There
or
are
profits also at each of
these stages. Let us consider three
these
of
cost
elements
and
very
briefly comment
on some others.
Our food supply starts with the
Time
grower.
been
and
claimed
share in the
small.
eralize
again it has
grower's
price is too
that
the
I presume it is safe to gen¬
and say "that the law of
and, demand ultimately
will determine that share., If we
find ourselves with a surplus of
be
can
where
good
seen
commodities
in
this
our
the
government, to make
its guarantees, had to
on
step in and buy.
for
in
the
bushels
It had
plus
level.
/; * './1. ,'/
There are forces at work that
tend to Offset that relationship.
so. millions of
lost.
A few were
The support program is oneThe
exported and some went to make
high-cost manufactured products
organization
such
as
creased
was
lost
About $80,000,000
this operation.
As
on
consumers
we
lower
prices
seemed
to
were
•
that
denied
the
is
the
commodities
a
The
coopera¬
efficiency of the
third.
But
Yovi
tobacco and cotton.
may re
call that following the first
World
time
when
War
there % came
prices of
ties
commodi¬
agricultural
fell to
many
a
such low
levels that
farmers were rumed. .With
oversupply came de¬
am enormous
pressed prices. There was plenty
people couldn t get it.
of food but
Some of the New Deal
with-
which
we
are
reached back into that
their
In
of
P^J^FJ
farniliai
period for
supporting arguments.
an
effort to avoid repetition
this
experience of the
zus,
legislation was passed early in
the recent war to establish guar¬
partment
levels
they become important
the unit
in
price.
Food
I
make
observation
one
to
as
enters into the
that out of the
prewar.
/ A Downward Price Tendency
.
While large sections of cannery
are
unionized, other large
If
agriculture, in the interest of
economy, is entitled
to some protection, then at least
let a program be set up that will
not result in creating disastrous
oversupply with the penalties that
labor
over-all
to
be
associated
sections
per
are
not.
Since
with
had.
as
we
in the 1935-39
There
those who
are
that labor rates will
That
be
may
highlv
spendable income —they are not
too high; in fact are low. Whereas
a given quantity of food products
a
profit, 'con¬
sidering the hazards and risks; in¬
volved.
;;/.
/-•'"/
no
prophet, and I lay claim
than
all
the
will and
your be¬
prices may go up
or down
may be completely upset.
Only a few months ago sugar was
lief
a
that
food
item and figured
scarce
inently in
prom-f
a black market. Today
it seems to be in
surplus. Certainly
the market is weak. A sudden
change in weather can upset our
best-laid plans. But trying to look
at the
guiding
factors,
we
have*
guess that with a
great potential to produce food
and with a World demand for it
that is bound to
decline, it would
as if we're in for
gradually:
declining prices. Some prices will
decline too far; in fact,
they air
ready
have.
Processed./ citrus
products are being sold below cost
today. On the other hand, some
seem
food
commodities
are
selling at
very high prices, partly due
their seasonal character and
to
partly
due
to
shortersupply; meat for
example. But
the board the
across
housewife who is willing to shop
carefully and selectively may look
for
lower food bill to feed her"
a
family.
1
.
/ ';/ ./
//
/
/
/"-
"
(Continued from page 5)
•/
Surely it is not overly-skeptical to harbor the
suspicion that three individuals appointed by the President and
operating in his Executive Office, will not at all times confine them¬
selves to the judicial view of events, trends and
policies. And is
of
regards
as
workers
claim
decline.
never
true
skilled
branches
in
some
this
industry.
But
certainly some of the unskilled
and seasonal labor, so much of
which we employ, will be working
dollar at retail
period, in January,
this
not particularly true when related to
appraising the activities
"the boss" and his Administration, cf which
they are members?
At the very best, it is
surely difficult for anyone to realize where
of
the political factor begins and ends.
<
.:
■
..../.V- If the Council's shortcomings are the result of the statute, there
is no reason why the law cannot be altered. But there appears to
be nothing in the law which compels it tq make pronouncements
for public consumption. For the President to. have
economic experts
quietly and directly working for him
as
do his press,
diplomatic,
military, and other technical advisers, is unobjectionable. But'the
Council's provision of a device for giving a coloration of economic
science to his controversial political policies is
quite a different thing.
comes out as a protagonist
reports, or when it is directly quoted on the pricing
activities of the steel companies. No
group of this kind can Simula
taneously serve two masters—the Chief Executive and the public.
For the latter it puts on a show of savants
creating an intellectual
atmosphere and certification of independent expertism to rationalize
This is
in its
typically done when the Council
annual
own
efficiency the President's
politica-f strategy. Witness as a typical result the
a period
recent $40-per-vote income tax bonus
plan whose authorship was
have been in, and are
openly hung on the Council.
/
in, it probably declines at a more
rapid rate in the food industry.
Prewar, the labor rates were rela¬
prices do seem high and to
many "too high." But in relation
to our: wherewithal to buy—our
consumers
industry, he is struck with
am
you
Apply
man-hour declines in
such
food
cost
in respect to profit.
studies profit figures
the modest net rate of
I
reasoning
better
no
,
decline
possible cost to the taxpayer with a possible lessened demand
we can look
for lower prices for
cannot: be justified.
When
in the
and if supply catches up with de¬ agricultural commodities
' v,:/-..
mand and the government finds near future.
^
itself a'really big buyer, it would
Labdi", of course,*playsTan im¬
seem
as
if the program simply portant part in the overall food
cannot stand the pressure of crit¬ industry.
Its chief characteristic
icism that will be leveled against is that much of it is seasonal and
it. But by that time the damage much of it is unskilled. We em¬
will have been done.
\;r//" ploy a high percentage of women.
bound
in this
is
man's
vidual subjective bias.
a
are
one
ahead
next
This
It is impossible to project with
here, thinking of food supply, it certainty what is going to happen
is interesting to note how this to grower prices, but it seems sate
support program tends to encour¬ to believe that they are going to
tend definitely downward.
With
age the growing of commodities
our great capacity to produce and
w.ay in excess of our needs—and
our
as
consumer's dollar
compares* with 40 cents
government is forced to
step in and buy. For our purpose
at
But
secure
the
the
into
to what may,
prices
in the
as
reports
55 cents went to the farmer.
the
that
quite
months
look
to
food
I'll hazard the
Industry Highly Competitive
would
to
S. De¬
Agriculture
of
'
at lower rates
as
we
move
into
a
.
...
f;;// /•'.,} </f{
//
Pamphleteering
.
-
i
The Council's annual report recently issued to the
public can by no
stretch of.the imagination be called an
objective analytical
/
of conditions—but rather
pamphleteering
a
vague
appraisal
philosophic essay,'
Whether wittingly or unwittingly ifr is a paper
arguing for its own
basic : economic
theories
as ' have
some
of
its members
from
the platform and over the air waves. In an
objective discussion of
—
wages
and
prices, the possibility that
a rising wage scale could be
rising prices should at least have been
mentioned, even if completely disagreed with. But the Report com¬
pletely glosses over this. Likewise regarding the critical problem
Of inflation, the many alternative
ways of dealing with it should,
one
of
the effective
causes
of
have
been explored concretely and in detail.
•
While this'writer; as stated above/considers the merit of the
ideological argument irrevelant to this article, he would point out
the large content of subjective bias,contained in the
Report's many,
inferences and assumptions—as in its continuing attack on the
principles of the free competitive system, and in its attempting to make
industry
the scapegoat for future depressions. It repeatedly asks*
question whether we can continue to trust our eco¬
affairs to private enterprise; to which query, besides an.
implied negative, it fails to give both sides of the controversial
the
rhetorical
nomic
Our government economists do,
that "the accumulations of capital
answer.
observe
fact
however,
over
find
the
to
have in
space
years
involved
deprivations of the rank-and-file worker"; and that
increased production must go
increasingly to filling in the consump¬
tion of the erstwhile poor.
V
/
,
....
t
•
1
according to the Bureau of Labor
Public Entitled to Factual Reporting
more
normal period.
Moreover,
Statistics, that same food would with a
nearly adequate labor sup¬ ; / If the Council insists on reporting to the
cost $2.10.
public, they should us©
But that 1935-39 dol¬
ply and competition for jobs, we
documents of an entirely different kind. All generally controversial
lar, as disposable income, has be¬ can
look for greater productivity.
come $2.75.
The price of food has
conclusions should be eliminated, and instead there should
merely
Finally, the great strides in the
not climbed as high as the ability
development of labor-saving ma¬ be an historical factual accounting of events, and even trends, with,
to buy it. Today we can buy the
chinery in this industry will have non-controversial statistical data. All else should be
same amount of food we bought in
exclusively de¬
an important
bearing on the unit voted to the
1935-39 and have more money left
personal education of the President, in lieu of the
labor cost.
other things; or to put into
savings, than we could then. Thus
it can hardly be said that food
to buy
prices are too high.
There
is
conclude
labor
It would seem safe to
that
rates
an
may
adjustment in
be forthcoming
in the not distant future.
,
•
nothing
•
'
;
'
If there is
one
about
mysterious characterizes
the
thing that chiefly
the
distribution
,
electorate.
'//
':■
-
■'*
...
:J
Quite apart from the incidence of politics, the elevation of th©
Council to administrative government rank gives its
findings author¬
!
of
price of food/ In the the various foods that the con¬
anteed grower prices on many last analysis, the price that the ul¬ sumer buys, it is the great number
aericultural
commodities.
^url timate consumer will pay is re¬ o£ people engaged in it.
There
lated to cost. Many elements get are more than 600,000 retail food
Government
told
farmers
1
could count on a price for a parrJ into that price. Chief among these-! stores; if restaurants and : other
all
happen
recent
*
?Saf
find
rates
ability
no
grower
what has
?ion
briefly about the govern¬
ment program which sets support
prices under some basic agnculcommodities, together with
recent
their way into price and when it
is remembered that they apply at
general in¬
At the end of 1947 the U.
This program threatens to get us
into much more serious difficul¬
and
grower
Jhatm
to speak
advances
the
to
future. My guess
experience shown in this respect?
supply
justify. As tax payers
paid for the loss;;/,//!./.-- /
ties. ; Other
of
tives is another.
starch.
-
In that connection I should like
Of course,
in
freight
*
potatoes,
^were
at the
grower
outlet
no
is sufficiently great
/hich
/
high.
are
pro¬ face of a declining
demand,
experi¬ prices of these commodities will
through having developed out¬
ence with potatoes last
year; The decline—and at a more rapid rate
standing character over the years,
market price declined to a point than
consumer prices, if the sur¬
have seemed to make themselves
gram
volume. So long
it. My purpose in mentioning the
employed there will be great prfcs,
program is not to criticize it so tively low in important sections of
sure on our food supply. ;
this' industry./ With
the
acute
/;/// muc& as to indicate how it can
We may thus concmde that sub- and does affect our normal sup- shortage of labor during the war
it was natural that rates would
iprt to the hazards of weather
y of some basic foods.
advance rapidly;' Every type of
we
in the food business
Food Prices
person, including labor from Mex¬
must always recognize—we have
ico, the West Indies and Canada,
the capacity to
We come now to the most com¬
t
and Italian and German prisoners
level of supply, and
mon thing said today about food—
any
of war, was employed
to meet
strong influences are at work en
namely that its price is too high. seasonal
needs/ Obviously (th£se
couraging that supply. It ts. my
Certainly every price advance is
people were unskilled, and
belief that this country need have
sjfice
featured in the papers, and cer¬
they were paid the going rates,
no fear of running short of fo°dtainly
the
labor
organizations unit labor costs were
high. ^Actu¬
X cannot conceive that we wil
make the most of high food prices
ally the wage rates'in this indus¬
ever require a ration programl in
in' their
bargaining for higher
try
are
Vh
times
prewar.
time of peace.
We might
bette^ wages. To the comment that con¬
adopt a program aimed at Pleven
(Consequently, labor costs have
sumer prices of food are too high
of our enormous, waste of
contributed in an important way
I would ask: "too high in relation
food.
to
such, price increases as we have
/ to what?", Compared with prewar,
Government Food Program
The net profit
great grocery chains ranges
very close to lV/%. It is difficult
to maintain that distribution costs
our
significant
the profit .that
price of food. The
industry is so competitive at all
the levels that profits cannot become
the excessive. Some companies,
supply
the
at the retail level.
of
consumer
extended as is. agricultural
The possible effect of
.
in
unprocessed
probability the
present act will be
we
;
Ability to Buy Food
.
fluence
be
that we
population is still un
dernourished.
;
and
ago
af food we consume
diet
ject
the
them
taxes and
"
our
where
chases
years the packag¬
transporting of fresh
fruits and vegetables has acceler¬
ated radically. We can now get [The
legislation provided that
our
vegetables, and even dried these price guarantees should re¬
main in effect for two years fol¬
soup, in a cellophane bag.
We can have a complete variety lowing the war. They expire on
Dec. 31, 1948, unless extended. It
of fruits and vegetables on our
is hardly to be expected that Gon~
tables the year 'round. This trend
gress,
in a presidential election
towards disappearance of the sea¬
year, will want to tackle this sub¬
sonal
characteristic of
recent
ing * and
included the
food
outlets
etables, meat and fish, and the would approximate one million.
labor, transportation and distribu¬ This makes for the keenest kind
velopea into enormous volume.
The pack of frozen friiitk and
vegetables
increased
from
180
million pounds in 1937 to 975 mil¬
ticular
prod¬ eating places are
grain, fruits and veg¬ number of retail
as
ity and prestige which
economist,
or
are
not warranted in the
gle for scientific exactitude.
,
;, In
.*
any
/
case
of any
existing*
by the profession itself in its present status in its strug¬
.
■
event, the.
ganda mechanism to
;
?
; !
*
.;
:
'
•:/<•• /
-
implications of this unique advisory-propa¬
our
democratic process should be fully explored."
38
(1454)
THE COMMERCIAL
i
•
(or rather if the people
buy and sell realize it) a
turnaround
occur
Markets
CHRONICLE
Thursday,-April 1, 1948
izes it
who
Tomorrow's
FINANCIAL
&
with
' ;
,
in
the trend
Trends Affecting Real Esiate Values
can
(Continued from page 8)
equal rapidity.
'/•'#//*
/V'/'/i.
phasize the deposit and loan trend
of the state and national banks.
/
the thirties when the pattern of
long-term instalment loans almost
Title VI FHA loans had been fixed
completely replaced
at 4%
the
Likewise
practice
the
rate
of
interest'
on
by amendment to the Na~
At the end of 1945, real estate [ of making one year flat loans. It j tional Housing Act under date of
Oddly enough, as mentioned
loans stood
at $4,670,000,000,
under the former .practice I May 2, 1946. Bankers as well as
or | was
in
the
opening paragraph, 16% of ordinary time deposits of that second mortgage financing so legislators, and the public at
large,
often
proved costly and even dis- did everything possible to make
signs pointing to both possi¬ somewhat over $29 billion. Using
astrous
to
borrowers.
this
While many
bilities are present.
program work.
Committees
For ex¬ the estimates for the year end of
I banks had already !
=By WALTER WHYTE=
swung to 10 for Veterans Welfare, committees
ample the figures mentioned 1947, real estate loans had in¬ [year instalment
on
Real
Estate
loans, the Nation¬
Loans,, and com-*
Conflicting war and tax talk last week where specific is¬ creased almost 100% to $9,300,- al
Housing Act, passed in 1934, mittees on Publicity organized by
000,000 and stood at over 27% of
halts market advance.
New sues would meet
selling, were estimated deposits of $34 billion. offered a nationwide method of the banking fraternity held opeq
move
after sharp decline a the
Express this another way: In lending for longer periods at uni¬ meetings, schooled their employ¬
figures at which stocks
form rates on a single
mortgage ees, explained the provisions of
possibility.
ceased advancing. So far none the two years 1946 and 1947, time
the
* *
tif
Servicemen's
Walter
Whyte
,
Says—
.
of the stocks
have in
we
our
approaching a pe¬ list have broken their stop
rapidly advancing levels, but that doesn't mean
and at the same time
they won't.
*
❖
*
an increasing possi¬
a sharp intermediate
The strike of Exchange em¬
are
of
riod
markets
there
is
bility of
break.
V'"\.V
*
tit
tit
the
of
Its effect
news.
lars
"
it
^
tit
and
'//'/! with
In the last two weeks you
have seen a sharp advance
will
can
I do
all
not suggest
and
did
everything
possible
and creating
to
this
deavored to temper emotion withi
reason
based on long experience
controls
aid
the veterans.
with
inherent
guarantees and
the
working
tews pertaining
j
en/
Bankers
of
to
economic
and
money
many credit. However, when reason inelements of merit in ' terfered with emotion, many seft
the
reason.
Lenders
system,
and
undertook
to aside
content
make the plan work, hopeful of with the fact that a part of the
over¬
to .time
commercial banks of the
is
national
bankers
that the
loan
estate
real
for
government
government
de¬
insurance,
saw
preserving FHA as
enterprise.
posit ratio of 27% in the insured
the
dangerous one, but I do point
that the increase from 16%
to 27% in two years constitutes a
a
administrative
FHA
have
non-political
of course,
rapid rise and is a cautionary
signal. It is this rise plus the rise
bility
of
far
so
heads
of
to
There
guaranteed
grant
-
without
the |
adhered
was
to
as
Fortunately,
program.
the
loan
of
servant
a
private
country
out
for
see
of
ger
market
Readjustment
Act
type of
Notwithstanding the dan¬
paper.
our
deposits.
Mortgages
selling will be interfered
and brokerage houses
probably be hurt.
But
that is about all I
increased
we
responsibility
wider
a
dol¬
Rapid Use in Real Estate
picture is unimportant. Some
more so than of the mechanics of buying
no
the action of the market.
i
than
billion
a
much
one year
with
the market
on
loaned
we
more
time
I know this sounds confus¬
ing but it is
1947
In the
amount.
same
ployees makes good headline
:
pattern and provided a system of
insurance relieving the lender of
deposits rose $4.7 billion and real
estate loans rose by practically
v
We
loans
went
to
up
bothering
to
f&t
so
$10,800
appraise
properties
themselves, but- dePonded solely upon outside arpPraisers who often merely rubber^
stamped the sales price. This %i
a
is,
present possibureaucratic control of
ever
in commercial and consumer cred¬ home financing if the country is effect was furnishing to each vetequally sharp the time being.
it which shows us how closely our not constantly on its guard to pre- erar} a $10,000 letter of credit for
#
#
tit
break. During the past week
the
business has followed the pattern vent
passage
of
seemingly buying a home with no down payyou have seen what amounts / Meanwhile, maintain your of the nation's economy.. v;
harmless legislation which step
by ment.
More conservative lendto dullness though at a high
With a full recognition of -the step may develop into complete ers,
convinced 'that an owner4
positions in the stocks recom¬
control
level. The advance has been mended.
by government. The pro- eQuify in the property was a 6afe-;
dangers of inflation and with the
Perhaps by next
knowledge that inflation has been posals for yield insurance, for ; fuar<f f°r both the-veteran an#
and is still being fed — week more
fed
significant clues caused by government deficit loans to provide dwellings on the lender, asked that the owner
by headline news of an im¬ will arise.
/fi financing/ by large governmental farms and- for public housing as
ve at least a modest cash inpending war and the prepara¬
expenditures during and after the offered
by
the CTaft-Ellender- jIi* /the property^ •carewar and by an over-abundance of
tions for it. It's not too diffi¬
Wagner
Act
are
steps
which
tuHy
analyzed the character^
The list you have now is:
money
competing for goods in would undoubtedly^/prove
dan'financial .position of
cult to figure that if a war
://///■■/ Purchase - -' :short supply, Mr. Dodge as Presi¬ igerous.
.each applicant in order to make
occurs, plants will start oper¬
Price
In fairness to the
Stop dent of American Bankers Associ¬
/ Stock
FHA, it must certa^T1 that the :-$i6)^vfFurdhased;
ation successfully worked out a be stated that its record of accom- was based on a,loan within the
ating on double and triple; Anaconda
31^-3214
32
4
shifts producing for the wari Avco
i
'i...
4i/2 program of voluntary credit con¬ plishment prior to the war and caPacity of the borrower to service'
trol to which the banks of the na¬ during the war was excellent. Five
31
30
-31
r^Pay- In other words, -theireffort. Obviously the major— Bethlehem
tion have promptly and enthusi¬ billion dollars of loans ui\der Title! objective was to prevent "over-52
54-55
Caterpillar
and even the minor
comII
were
j Douglas
50
-52
54
insured, producing receipts buying" on the part of the veteran
astically responded. Events moved
my
panies who have been shaking Cons. Vultee
12
-13
my opinion
opinion that
that such a
a lend¬
1 end12
quickly in the field of credit and from insurance in excess of the
ing procedure was actually the
amount
their heads at the prospect of Dresser'4:
necessary to pay losses.
21
-22 / •: v23:/ economies as Mr. Dodge and his
after
almost
an
—
•
_.
r
i
_
—
—
—
-
*
future
business
again be in
will
oncfe
position to show
profits. This po¬
a
tremendous
-16
16
13
-15
15
try from important center to im¬
United Aircraft
23
-24
23
portant center
appetite/ to
stocks.
ciently,
will
cause
tit
tir-
them
/' //
to
Thursday.
—Walter
absorb
And if whetted suffi¬
zoom' still further.
___
More next
tential business is behind the
public
'
15
Lockheed -C.LIL
G. L. Martin
[The
views
Whyte
On the
pointed out that in the field of
tion
wiph those of the
realistic side
there is the tax picture. We
know we have a tremendous
debt from the
we see a
last
tax cut
while at the
war.
time
we are
preparing to spend additional
^billions for
#
a
new
war.
The
thing just doesn't make sense.
Or maybe it makes much bet¬
ter sense than is generally
realized. Perhaps all this war
talk is deliberate, aimed for a
specific purpose. What this is
I can only guess at, but if the
coming war is just talk then
the stock market, once it real-
Pacific Coast
y
to
(Special
LOS
on
/
Schwabacher & Co.
Corbrey
CALIF.—Carl
become
associated
to
the
inflationary
by encouraging credit
would aid production of
j
Carter
goods. Mr. Dodge and the
American Bankers Association
New York
Stock Exchange
'Chicago Board 0/ Trade
14 Wail-Street
New York 5, N. Y.
OOcttandt 7-4150
to The
(Special
Financial
Chronicle)
SftB Francisco
31
Haaten;
—
—
Santa
Oakland
—
Officee
Barbara
Sacramento
Fresno
lowered during the war
in order to provide
housing, par¬
war
a
vital interest in it.
;
ANGELES. CALIF—Hor¬
Donnell has joined the staff
Crowell,, Weedon & Co., 650
South Spring Street, members of
the Los Angeles Stock Exchange.
He
was
previously with
First
California Company.
in
Pendelton With
officials do a little better job-in
preserving what is left of sound
And
this
in
so
talk I want
housing shortage. With the
sudden
ending of the war the
country was confronted with the
problem of returning to a peace¬
The
liow
to
mortgage lending
has followed the government's in¬
flationary
our
acts, in
our
time
we
ing
sible.
An
public utterances and
hand
was
in
with
our
education
government
Financial
Chronicle)
DIEGO, CALIF.
—
that
Clar¬
T. Pendleton has become
as¬
are
of the
most
cancerous
to
money
and
625
with
Broadway.
.
are
Chapin With Marache, Sims
(Special
LOS
to The
ANGELES,
Robert H.
sociated
Co.,
Financial
Chronicle)
CALIF.
458
we
South
Spring
y
:
.
the
should
soning
which
each
new
as
it
behind
this
is
Changes in Form of Mortgage
mortgage
lending
took
1944,
J
:f
•Hi/
.
f•;,
i
1
Vt'\'!K?:
/.
<
.*
there
of the
program,
rea¬
provisions
>•/-
law
the
was
•
;-:
.
written
provision
of
'
•
an
into
that
States Government
the
would
amount up to $4,000
(not to exceed 50%
of the
debt)
of each veteran's loan made to aid
in the
of
purchase
,
f
-'-
of
was
a
home.
The
fixed at 4%.
i
•
"i
"•
'<
Administration
vigorously espoused the
100% loans.
of
cause
.
'
For two years nearly all of
the;
housing has been reserved'
new
for the
veteran, with two thoughts!
first, - providing a roof
over his head
and, secondly, re¬
ducing the cost of housing. That
the
first
undertaking has been
partially accomplished cannot be
in
mind:
denied
with
the
1947
record
nf
850,000 completed houses, mostly
for
veterans/ ;But :the second ef¬
fort proved to
the
veteran
friends
be
who
cruel jest to
a
and
those
of
his
sincerely wanted to
help him. Instead of lowering the
price of either new or old con¬
struction, throwing this huge vol¬
pf
ume
-credit
easy
market
resulted
owners
raising
there
cause
in
on
their
little
was
short
a
builders
and
prices
or
be¬
sales
no
effort
required to market their
properties.
In fact, there were
lines of waiting veterans
long
competing among
buy at any price
themselves
long
as
as
to
no
down payment was
required. With
care
to avoid discussion
of the
real reasons of
rapidly increasing
builders, real
estate
brokers,
labor
leaders,
politicians, and others endeavored
housing costs,
to
convince
of
means
many
the public
reducing
that
the
any
monthly
payment of the ultimate purchase
would
reduce
house.
Five
the
cost
minutes
the
on
of
of
part
of
the
serious
listeners
should have shown them that the
Readjustment
and
amendment
in rate of interest
place
success
Congress, yet the head
Veterans'
easing of terms to the home
chaser
merely
mand
and
r
increases
does
de¬
the
by
one
dol¬
On the contrary, the artificial
stimulus given to the sale of
prop¬
erties
merely. ,invited
to
On
be
price in¬
temptation' too great
ignored by most builders.'
the
a
of
score
what
meant to the home
tle
or
how
no
emphasis
much
more
purchaser to buy
easy
terms
purchaser, lit¬
was
placed
on
it/would :-cost
a
a
$10,000 home
financed for.25 years at 4% than
:i >3
:
pur¬
the
reduce
lar.
i
•> )
not
cost of home erection
creases,
United
great change in the form
the
of
Thus,
3'"/V-/,' Lending? //•!
A
and
Loans
to understand the
Act
"
'•
enterprise
financing
Servicemen's
carefully scruti¬
measure
em¬
to public hous¬
the
thereto. '
nation, and I believe
more
is easy
guarantee
members of the Los Angeles Stock
.
arid
proposed to Congress.
&
Street,
of
nize
as¬
Marache,, Sims
beneficial
in
terms, within the
So in view of the
it
of
the
of
thought
FHA mortgage
injurious to the economic wel¬
fare
—
Chapin has become
with
v
.
are
favorable
Veteran Housing
was
H
hospitalization,
assistance
credit ing.
Buckley
He
and
system of private
Brothers, enacted since Franklin Roosevelt
was
first
elected
are
bad.
My
formerly
opinion is that many of them are
San
Diego
manager
for
First *?ood and show
improvement over
California Company and Nelson- former
practices, but I believe that
Douglass & Co.
/
! they should be reviewed to see
sociated
veteran
without resorting
I do not wish to infer that all laws
pertaining
quickly as pos¬
problem at
as
immediate
ployment, as well as aid in pro¬
viding housing for the veteran as
quickly as possible and on the
growths
commencing to plague vs.
some
economy
daily
should
contacts
our
and: why
pressures
bankers
as
law and practice and in eliminat¬
Buckley Bros.
to
show
intent
were
acute
ace
Exchange.
if
ments which prevailed before the
have presented a good case show¬
have
of
Teletype NY 1-928
Private Wires to Principal
monthly
construction
H. Corbrey &
Spring Street.
Members
•
make
related to the size
The relatively high standard of
and
credit require¬
needed
which
New York Curb Exchange (Associate)
Son Francisco Stook Exchange
to
was
attract funds from the large insti¬
tutional lenders.
add
and
which
LOS
ence
Orders Executed
has
South
SAN
Pacific Coast Exchanges
would
Chronicle)
capacity
payments
Co., ing how inflation can be corrected
in
the
war
Mr. only by attacking the causes and ticularly
industry
a
system of areas.
Ruble was formerly with Harris, not by setting up
Since the war these low¬
artificial
control
laws.
I
am sure
ered
standards have been contin¬
Upham & Co. and E. F. Hutton &
that every one of you will agree ued
Co.
because of the scarcity of
with Mr. Dodge's statement that
materials, inferiority of quality,
while banks have not created the
shortage of production and excess
Joins Crowell Weedon
inflationary
problem,
they
do of demand, all contributing to the
with
650
(Special
Securities
Financial
ANGELES,
Ruble
B.
The
er's
ac¬
banks
financed if the borrow¬
play a most important part of the loan and if the rate of in¬
discouraging
credit
which terest was at a level which would
by
the author only.]
Ruble Now With
inflation
combat
be
^ould
trends
Yet
being passed
same
those jof
to
could
But he also
a cause.
time
coincide
However, it has been in existence
only in a rising market and has
not yet been called upon to meet
coun¬
article do not necessarily at any
>'f
more
the
across
explaining the ob¬
jectives of the plan and asking the test of economic depression.
for the cooperation of bankers in
It was this FHA experience in
every state.
Mr. Dodge stressed particular
that
pointed
out
to
that bank loans are a symptom of many the ease with which
housing
in this inflation—not
expressed
Chronicle. They are presented as
v
associates moved
i
I
■
I
> V
i:
I
U
li
t
-(1/
4.
Volume 167
Number 46865
*
it would cdst if he borrowed but
THE
Unfortunately,
COMMERCIAL &
those
savings
$8,000 on the same home for 20 have been largely offset by in-.
years at the same rate of interest.
creased labor costs.
Despite the |
/ In this simple illustration it could- prospect of continued demands for'
1 have been pointed out that the
wage increases the end of spiralborrower would pay $2,200 more
ing costs-should soon be in sight, j
in interest .alone on the larger
.
»
'
*
amount.
In
*
.
*
1948,
rand
.
Houses More
\
,
Notwithstanding the
find the President
we
Congress
the
and
financial
Plentiful
large fig¬
shown by theoretical surveys
ures
'
4 bureaus of
cerned
-
Washington deeply
'by
the
con-
which
course
in-
flation has taken and urging steps
to curb it.- On the other hand, we
i
c
find many who believe
4
v
still
further
terms,
-
;■
anties
r
often
t
that they
solve the housing problem by
can
easing
purchasing
giving government guar-
or
subsidies.
or
These
groups
that private
enterprise
has failed.
Let us analyze that
statement.
Despite the shortages
say
of materials, black markets, labor
inefficiency, ills of distribution
and
particularly the system of
government controls, private eni terprise completed more houses
4 last year than any other year since
;
1925.
True, most controls were
-
*
■
I am
when the best
/ date will be for the lifting of rent
4. control—it must come sooner or
later.
But
/
lifting of
..
be
;
.
the
day requiring the
rate control may
morey
than
closer
we
think.
on
As
cases.
far
properties
are
concerned, the scarcity pre¬
miums are fast fading out of the
picture.
For
the
past
several
months in the metropolitan areas
of many states, it has been
pos¬
sible, in fact, easy, for a nonveteran
find
home
new
30
to
and
which
purchase
has
been
days for veterans'
with
a
held
preference,
takers.
no
Bureau
of
Census the number
of
families in the United
States, in¬
cluding those doubled up and
those living in separate quarters,
increased
4,900,000
from
the
be
ginning of 1940 to the early part
dwelling
Lending Institutions \Already
units
of 44,400,000.
In
we
can avoid
stable and
topheavy mort¬
enced in the last
his
when
pay.
major depression
high rate of foreclosures
a
the
and
Erection of
the
sale
distressed
of
prop¬
erties did much to accentuate the
downward course.
Rental Units Is
Greatest Housing Problem
We must not avoid
reason¬
mortgage structure underlying
real estate
values, it is entirely
logical
that
when
depression
comes the price declines will be
more Orderly than those
experi¬
existing
nearer
our
more
gage position which existed at the
end of the twenties. With a
proper
reducing
the price of housing
through com¬
petitive selling, and aiding the
older
as
real estate will be
down the de-
or
If
ing is sound, then future values of
mand will have the triple benefit
of retarding
inflation/of
trying to sell you one today, cut¬
ting his asking price in many
of 1945, whereas in the same
pe¬
riod there was a net increase in
/
of slowing
process
(1455)
tion is maintained.
money
a consequence, any
ability to
name
tions and fixed money rates being
not prepared to say
i
purchases. As
<*
CHRONICLE
into the purchase of property are
far less'inclined to pay excessive
prices for homes than those who
have little or no equity in such
the waiting list to
buy a new home. The builder is
your
pointed out that according to the
j, two of the most important.
Own
veteran to buy a new
home at a price level
Controls still remain—rent limita-
24, 1946, making
I this record possible. A number of
1
to the number of houses needed
considerable of their
adequately house all of our pop¬
ulation, you no longer have to put
Testimony
presented
by
Mr.
Douglas Meredith before the Joint
Housing Committee in Washing¬
ton, D. C., the week of Jan. 12,
:i taken off on Dec.
.
as
to
FINANCIAL
ual
responsibility
voluntary
let
obligated
gram is in any way intended to
iinjure the veteran—quite the re¬
verse
is true. The medicine for¬
merly offered
to
reduce
of his home had
effect.
a
Now
we
soundest of
the
million
help
veterans
the
other
130
nation.
well
as
larger
problem
million
greatest
needs
of
one
to
as.
of
people
Housing is still
13
on
That
what
the
us.
*
stance
T
reason
where
emotion
overruled
and experience).
Any fur-
ther
lowering
of
the " rate
or
lengthening of the term of indi-
'
'/ vidual loans is
apt to have
the serious
causing the
mortgage money market to dry up,
which would in turn really retard
home construction.
now
effect of
/
-
You
fact
.
probably
are
that
one-half
of
ters.
Yet because of
easy
a|nd guidance.
And I
that
Principle
192
run
things in Russia
principle.
being indispen¬
boss, not by being
indispensable to each other. They
get next to the throne j?y push¬
ing each other—by pushing other
people down, not by cooperation.
a
sound basis.
I believe that
the erection of rental units is our
greatest housing problem of today.
Almost daily private enterprise is
In
fact, they get where
eliminating others,
hey are
just
as
Stalin himself came to the
top, not
by cooperation and team play
with his
associates, but by twotiming others, one by one. ' /
by
entire
nation's
mortgage
to
credit
of the
/housing erected in the past two
has been for ownership and
only 15% for rental. Unsound as
the program is, Section 608 of the
; National
Housing Act provided
practically the only attractive plan
I
for builders to finance the erecV vtion of rental units/ However, the
years
combat
but
it
inflation.
is
remedy
lacks
This
and
new
of
some
ABA
wholesome,
the
appea
that is offered by political reme¬
dies.
Great care must be exer¬
cised
in
applying
which
we
offer;
the
medicine
and
that
cine
be
in
now
effective
more
a
found than the
medi¬
of
limitation
to
v
4%
the
the
and
rate
of
interest
of
control
recently placed
rents
these projects
will in my opinion discourage the
production of this needed form of
housing.
The term of 32 years
-
/
/
.
and
4
v
.
of
/
*
■.t
on
months is considered
seven
by
many bankers to be too long for
the employment of savings
money,
but many have been willing to
finance these rental units during
construction
for
a
moderate
fee
servicing charge. With the softehing of the bond market and the
or
'
rise in money rates generally, in-
;
•
4 surance
companies, which are vir¬
tually the only market for FHA
/' 608's, are unwilling to pay a serV
vicing charge large enough to
;
•
Warrant
the
bank's
share
in
this
'
operation.
4/■' cental
I believe if
housing
are
this
;
the rate
;
be increased to 4V2% and
;
of
/
-
r»,f
r
interest
will
mental controls lessened
Constructed
■
from
private
units.-
to get
source
have
to
govern-
on
newly
Here,
enterprise
again,
cannot
be
credit which
come
4.u
erationT? In
i
the
•
..High
prices
have
caused
in-
production of materials
production has meant
44 increased
V less delay in construction; less delay has permitted < considerable
saving in the cost of the finished
..
j
x
of
studied
,i
j
today's
of each
conditions, the purpose
application should be
fully
care¬
to
distinguish be¬
tween the inflationary and noninflationary nature of the request.
Certainly loans to buy land for
sale of lots
and
on
a
basis should not be
A farmer who has his land
made.
clear,
good
nation.
To
bring
a
fast moving train to an immediate
stop would jar the passengers and
might wreck the train. A skillfu
engineer applies the brakes evenly
as he approaches a
curve, but he
still keeps his "train "moving" in
order
to
nation.
reach
forms of
proper
desti¬
the
so
banker
is
spoke
job. Builders who erected homes
/ in 90 days prior to the war re¬
aid to
level.
inflation, whereas loans
How
do
we
apply those
mortgage
credit?
Certainly not by stopping lending
altogether, but by analyzing cred¬
orinciples
it use—at
to
end
one
encouraging the
nrodaetion of
housing, but at the
insisting that the con¬
other
end
sumer
credit (home buyers' credit)
a
sounder basis than we
home
not.
during
Will
years.
that
the
housing
is
still
and
past
program
buying to cease?
There
market
has
touched.
while
credit,
a
the
two
cause
It should
been
is
same free
job in 1946 and 1947. Today
many of those builders are back
mula
a
three
or
four months' basis.
virtually
un¬
The non-veteran
not
group,
conservative
supplied
with
the
and easy
placed
so
.mortgage for¬
carelessly in the
hands of many veterans. Conven¬
tional borrowers who must
put
-
Did he speak about the
war, or
the suffering of the Ger¬
people?
No.
He began at
once a tirade about his Nazi
rivals.
There was nothing on earth a
could say about another
man
Goering did not say to me
German
Foreign Minister
Ribbentrop. Goering called Ribbentrop a liar, a fool. He blamed
about
him
for
as
°f
0ne
of
many
Goering's
with Hitler.
You see,
whenever Ribbentrop went up in
Hitler's
favor,
Goering 'went
down; and vice versa.
+
Goering
equally terrific in
was
speaking
about
Goebbels.
On
Himmler
the
bels
speaks
that
if
about
had
as early
early, mind you:—
thing Goering
would
the
first
have
done
shoot
.Ribbentrop
would
Loans
to
erect
of the actual
profit
a
stores
later
in
on.
advance
Applicants for loans to erect
sum¬
mer
collateral offered should be turned
down because of their
inflationary
turned
before
the
announced.
was
.
ABA
program
Likewise
the
first
The
thing Ribbentrop and
have been to shoot
Himmler
three
would
of
done
was the road to
inner circle followed by each
man around Stalin
today,
if
them
it
The
he
first.
function in
same
see
our
country.
Here
we
men in
charge of inter-re¬
departments.
We advance
lated
on
merit—on the ability to co¬
operate, not on the ability to cut
each other's throats and tie our¬
selves
of
They
cooperation between the dif¬
ferent
inseparably to the favor
the man at the top of the enter¬
be
perpetual,
shown.
4
there
are
numerous
as
history has
"4
When the
man
second
second
at the
communist
of
the
where
Stalin's
death
us
an
are
tion
to
the
tion.
So far
supply of credit
the
we
change in
have
nounced
estate.
seen
con¬
direc¬
no
pro¬
drop in the price of real
However, just as
easy
credit contributed substantially to
rising costs, particularly in the
housing field, so tightening credit
at the consumer level is bound to
bring
down
the
sale
price of in¬
dividual houses if present produc-
cloth.
by
the
blood
new
future, af¬
in your land and mine.
continuity,
the moving
pic¬
ture of Russian foreign policy and
Russian capabilities, will be im¬
race
The
is
better
when
death*
at the top
is
But
a
come
great im¬
what may,
it
worse—and
or
and
on.
outcome
ponderable.
for
who have
men,
sit
immense ef¬
the
of
events
fecting
The
seem
There
men.
crowd
same
they
have
can
on
top goes
fighting with each other,
but have been helping each other
independent of the big boss. They
are
ready to accept one of their
own number to carry on
smoothly
when the top man of the enter¬
prise dies or retires. You see that
every day in American business
does
if any change in the pres¬
ent Russian movie script is bound
as
to be for the better, from our
point of view, because the present
outlook couldn't be much worse—
nevertheless be
will
there
tain
throwing
the
domestic
up
Soviet
whole
policy
else.
"4;
a
cer¬
into the air of
foreign policy,
and everything
y
•
We Seek Long and Honorable
and in
our very biggest and most
complicated companies. 4
'
Peace
.
What this country of ours seeks
This Happened in Germany
On
the
is
other
hand, look what
happened in totalitarian Germany.
I
Herman
saw
after he
of
the
war.
in
times
Now
was
I
Goering the
went
near
day
to
many
the
war
interview him
a
in
little workman's
Augsburg, Germany
There stood Goering, inside the
low wooden fenfce in front of the
cottage—his
legs
apart
and
his
feet firmly planted. The tunic o
his
pearl gray field
marshal's
uniform was open. His shirt was
wet
with
perspiration.
He was
puffing like a porpoise. But his
blue eyes were hard as flint, smal
■
■
.
-
Now is the time to be
arid
him
v: 4
peace.
even
seen
a
a
I'd
before
great and terrible war,
prolonged and honorable
not
but
captured at the end
Berlin
cottage
Many factors in addi¬
all
have
system.
purges
fect
out
sit
On
y
not been
confinement in
the decline.
shot
could
j
Kremlin
cut
are
had
its peak and was on
Goering, while
have
Kremlin Crowd the Same
It's exactly the reverse of what
makes a large company grow and
j
volume of real estate transactions
reached
to
Goebbels would have done would
character.
And, of course, when
loans are made, they should be
based on conservative appraisals
with a recognition of the inevi¬
table drop fqllowing periods of
high prices and speculation.
'
The
mortgage -market had
been
Goebbels.
Actually shoot is what I mean."
Moreover, that
requirements of the
I neighborhood should be declined.
have
and
can
at
whatever
died
1937—that
as
ber
lands
Goering.
question
no
Hitler
the rat
buy
and
other
hand, if
you read Goebbels' personal diary,
now being published in our coun¬
try, you will notice how Goeb¬
That's the American free oppor¬
tunity system. It works, and it
to
own
troubles
|,he
or
in
man
that
standing timber in
the hope of the sale of those tim¬
order
dealer
borrow
not
bitter
ament
affected
shortage of tributed to
non-veteran
having ample
quired 10 to 12 months to do the
to
more
*£ t
the
see
vacuum
lumber
postpone their plans until build¬
j in 4 short supply and those ing materials and labor are in
which
more adequate supply. Many other
.increase
production
of
needed articles. Obviously, loans loans which might otherwise be
to increase the demand would be considered safe on appraisal of the
*
same
no
could
you
glint in his eyes.
leaves its
retail
should
are
to increase production would
tqnd
to reduce prices at the consumer
the
been
ship.
mensely
A
mand for goods and services which
an
lenders
great opportun¬
prise.
land.
homes, resorts, theatres, cock¬
distinguish between those tail parlors, and certain. types of
credit which increase de¬ eating houses should be asked to
And
asked to
his
small mort¬
a
into debt heavily to buy
go
builder
for the
subject to
or
gage, should not be encouraged to
*
f
second
was
his death bed,
on
even warned his fol¬
lowers against the
very man who
finally did : come to the 4top
Stalin.
4;..
,4:
for consid-1
in
light
loan
stoppage of lending could by the
wildest
imagination be deemed
blamed while the government sits*
be on
in the driver's seat. y444;/;4 y
have seen
creased
purges
There
know,
^ou
Non-Housing Mortgage Credit
subdivision
No system of extreme liberality
credit followed by a virtua
a
best
have
ity to show economic statesman¬
There's
Purges, blood
Lenin
man.
use.i4'4; 144 ''''44:4 ;4;4 ':44;
speculative
.
<
happened?
at the top.
formula
.
Bankers Should Exercise Caution
before
presented with
be
may
Never
ex¬
fashion that
a
nation
served.
Lenin's Warning /44y;
When big boss Lenin
died, what
have
nation
quar¬
44444
v I have
largely concentrated my
already heard quite
bit about the pilot meetings con¬ remarks on housing loans because
Stalin himself got to the
top by
ducted by ABA. You will hear a this is where the inflationary fires
doing away with others, such as
have burned most furiously.
But i Trntskv—hv thp dPaHlv nmrPQc nf
great deal more on this subject as
the various State Associations and there are other forms of mortgage
You
are
the
..
The others around him
got into
on
am delighted
bankers generally are respon¬
sive to their public
obligations.
local bankers expand the program
of the voluntary control of credits
rented
and of rent control 85%
v
•
.
the
sincerely believe that the na¬
looking to bankers for help
of the
aware
[J is normally housed in
I
we
give
man
their positions by
sable to the big
be erected
can
men
the one-big-man
on
rental units wher¬
buildings
way.
important to
The whole government is
built up
erly be deferred, and encouraged
such
whole
Only 10
12
or
non-essential types of building
could quite prop¬
ever
is
in
man
The
another
We're not
dealing with the
million people in Russia.
whose erection
residential
in
The One-Big-Man
of the
of the
discouraged wherever possible
on
state.
works
is
second
any
system
the
country,
therefore, mortgage credit should
be
never
totalitarian
a
asked to write
which will aid
produce rental vacancies.
tion is
to
advice, but also to
tend credit in such
*
ing loans to veterans (another in-
only
(Continued from page 8)
There's
*
tions off for the purpose of mak-
mind that
not
Happens When Stalin Dies?
cost
just the opposite
are
prescription
the
What
challenged to produce this type of
words, in spite of the war
yKv!-;':i Cluttered 444i:f44 ,■ '4
the increase of housing units had housing or surrender that portion
of our economy to subsidized
Already the savings and loan very
pub¬
nearly kept pace with the
associations are well loaned up.
lic housing. I am convinced that
housing needs. A change in busi¬
';■*?< Some banks would have almost ness and
industrial activity could private enterprise can do the job
reached their statutory limitations
in this field but that governmental
very easily cause lessened demand,
(*•: had not the Servicemen's Read- doubling up of families and even controls which retard this con¬
struction will have to be modified
justment Act taken those limita4
in
Don't get the idea that this
pro¬
ether
-
bear
us
exercising
controls,
but
retard credit,
do to
we
individ¬
our
in
credit
whatever
39
as
we
make
hopeful,
prepare for the worst,
our
country
stronger
Stronger—for
there is no possibility 6i peace un¬
less America is strong, and unless
and
stronger
and
peacemakers use bur new
strength more intelligently for
peace than they used our even
greater
wartime
strength
for
peace in the past.
Where there's life, there's al¬
our
-
ways
hope.
And,
in
this
where there's death, there
tOO.
casq.
is hope
44
cannot reach conclu¬
sharp and luminous against sions about anything abroad to¬
his sallow skin—like bright spots
day without considering the death
gleaming on a china plate. As he of Stalin.
and
Again
we
40
FINANCIAL CHRONICLE
COMMERCIAL &
THE
(1456)
-
(Continued from page 7)
Indeed, dur¬
ing 1S46-1947, this country, which
the past two years.
before
the
only
Europe
when
the
total
per
ported
by European
countries.
Shipping difficulties, costs and
the Europe-wide dollar shortage
make it unlikely that last year's
was
of the
decline
was
even
greater: from 1.55 tons per per¬
out
workers
Germany and in
tion for ERP<$s
war.
.
To
follows
yet to their efforts.
in
There
for this
are many reasons
the
plies
food
of
availability
slow but steady
increase in Ruhr coal production
litical. social and what not—is of
which had progressed from
an
incredible
almost
For-example,
complexity.
Manpower Shortage
;
last
month
A
1946-47
and
suddenly thrown into reverse
March and April when the
and
begin with, there is an acute food supply situation in the Brit¬
shortage in a desper¬ ish zone took an abrupt turn for
ately overcrowded country. This the worse. In May, the daily out¬
seeming paradox, of course, is not put again dropped below the 200,confined to the Ruhr area alone 000-ton mark, which had been
but exists in greater or less de¬ passed on the upward trend eight
gree everywhere in present-day months earlier* Then emergency
Germany. Due to the recent in¬ supplies were rushed in, mostly
flux of many millions of refugees from American stocks, and a new
from Eastern Europe into a dras¬ advance began. By late August.
tically reduced rump-Germany, 242,000 tons were being mined
all occupation zones, but in par¬ daily.
In mid-September a new
ticular the British, are far more slump set in, at the exact time
the "resettlers"
dren and old or
Last spring, official estimates
figured that at least 100,000 addi¬
tional workers would
in
the
Ruhr
mines
be
to
trend
reach
the
not expected to
than
required
manpower
"Bizonia"
in
and
all-time
high,
for
the
period, was reached on
when 284,400 tons were
more
the
or¬
17%.
of the
vast
in
the
only
help, either because they
inexperienced or weakened
by long years of privation, or dis¬
or
all of these
things together.
Low Labor
;
,
,
one.
are
the
mines,
but
not the
After all, the miners do
to
the
ordinary con¬
generally unsettled
The
of
the
German
economy,
Productivity
German magazine
arti¬
cle, Herr A. Halbfell, Minister of
Labor of the State Government of
North
Rhine-Westphalia, revealed
interesting details about the poor
performance of Ruhr miners since
the end of the
r
t
war.
inArt
.gggyg*??
it
V
,,,
Si
i,
onm
°°°),
i
v
,
and
a
director
and
.
of
Lear
manufacturers
of
electronic
.
New
Mr.
of
has
Arizona,
Phoenix,
at
from
increased
been
$550,000
$1,100,000 by the sale of $550,000 of new stock. The bulletin of
to
the
of
Office
Comptroller of
the
gives the date of the
of March 2.
the Currency
increase
as
«
:
#
*
Vanden v Broecke
former chief of the Financial Sec¬
tion
of
the
Belgium Economic
Mission to Washington, has beer
F.
Joseph
appointed*.'J. Assistant
the
in
dent
Vice-PnesiInternational
Francisco)
(San
America's
of
Bank
Vanden
Broeckc
will be associated with the bank's
His experi¬
Far Eastern activities.
in
1927
after
his
graduation
from
the
University of Antwerp in his na¬
tive Belgium. His career includes
service
in
China, England and
ence
banking
began
of
by L. M
of
Bank
San Francisco, for
branch
bank's
the
.,
e
of
all
of
and
managers
of' its administrative offi¬
cers, according to Executive VicePresident E. A. Mattison, who is
many
Indust ries,
and
Radio
D.
Gearhart, Jr.
Lear
than
of
as
of
600
representatives
22
by
a
it
the
single
Bank,
of views and
exchange
conference
will open
on
Fred
Carlisle
H.
has
appointed Vice - President
and manager of the Bakersfield
main office; Laurence J. Robin,
and
Vice-President
Assistant
Bakersfield
office; and John F. N, Cox, an
Assistant Manager of the Bakers¬
field main office.
All appoint¬
ments are effective April 1.
Mr.
manager
of the East
Carlisle,
who has been Assistant
Vice-President and manager of the
East Bakersfield office of the bank
since
Carlisle
of
C.
Mr.
in 1927 joined the staff
First
National
Bank,
the
Mr.
a?
years
broad
a
>
that followed
experience in
bank.
native of Montana,
a
extensive
an
the
of
messenger.
a
departments of the
Robin,
had
Don
predecessor
the
had
various
succeed
who has resigned.
Bank,
During
he
will
1945,
Shannon,
in
experience
banking in that State before com-"
ing to California in 1942. He has
been
asssistant
manager
of the
Fresno office of the Anglo Bank
Mr.
1946.
with
associated
since
his
1928,
has
Cox
the
been,,
Bank
Anglo
position
present
being that of assistant to the offi¬
cer in
charge of branch loan ad¬
head
office,
father, the
San
late
well known
in diplomatic and banking circles
ministration,
His
Francisco. *
Frederick N. Cox, was
in Central America and
ident of
was
Pres¬
bank in Costa Rica.
a
'■■.y.V;?'';
if
if
if
;v
J. Floyd Ragan was
recently ap¬
pointed Manager of the Alhambra
office
Los
of
California
the
Angeles,
ciated
with
a
since
served
Bank
he
where
Assistant
throughout the State, Mr. Matti¬
son
pointed out that it is not a
convention, Jout is - a
workihg
The
San
of
Allarji A. Calkins,
been
and
the BakersCali¬
Anglo
announced
were
dent A1 Beyer, Jr.
ideas.
Televi¬
and
panies^,;,;,..
Unique
gathering together
the
been
Pacific
Monterey
in
bankins
of
bank, from some 307 communities
ings
F.
is
of
asso¬
Vice-Presi¬
Mr; Ragan has
member of the bank's staff
1933
and
one
year
during
the
war
in the Army Field
Artillery.
On his return to the
bank in March, 1946 he was ap¬
pointed Assistant Manager and
assigned to the Alhambra branch.
Earl K. Simpson, Auditor of the
April 17 with a general as'
California Bank, has been named
sembly at which President L. M
Giannini will deliver an address' Chairman of the Finance Commit¬
cn
sion, manufacturers of Brunswick
Radios,
near
management conference, devoted
almost entirely to business meet¬
Wilcox-Gay
Corp.,
the-affair.
the
on
more
key
and
director
a
of
Asilomar,
Cal.,
does
under¬
writers,
is
Chairman
if
National
since
conference
State-wide
-
"3
*f
President
of
America,
in
• ;•
-
'
history,
finan¬
fornia
Anglo
Mr.
peninsula.
&
offices
Bakersfield
Giannini
M.
if
/ Three promotions in
field
anouncement
President.
a
Club
Angeles Stock Exchange
Banking Department according tc
by L.
He is
California
the
i
March
capital of the First Nation¬
Bank
Grove,
Inc., New
of
member
President.
The
al
17-18-19 at
is
ican Bankers Association.
Francisco,
$1,500,000 to $2,000,000.
Giannini,
Gearhart, Jr., has
aircraft
Gearhart
cial
Bankers
other com¬
several
on
manufactures
parts
for
subject, "What's Ahead?",
he will lead a free
the
after
which
tee of the National Association of
Bank
Auditors
and
Comptrollers
many
.
,
stalled
last
national
Noyember; the inter¬
controversy about the
level-of-industry and related is¬
sues;
the
and
mination
to
Communist
wreck
the
(Soecial
to
The
Financial
Tully
Chronicle)
mittee.
■
''
LOS
ANGELES,
CALIF.
—
Richard W. Jones is, with Mitchum
Tully
&
Co.,
650
South
Spring
Street.
Marshal
^
^
^
one reasqns why the Ruhr is lag-
dlsclosed'1 *in& An$
(special to the financial Chronicle)
as long as it does, the
PASADENA, CALIF.—Rov D.
recovery vol Europe will be de- Waters is with Keenan & Clary,
..
..
„
.
^Inc.; Security Building,
Mr.
Ivey
started
com¬
his
banking career as a messenger
with California Bank in 1908 and
advanced
to
Assistant Cashier in
Following
1912.
Air
Army
War I
deter¬
■
executive
the
of
member
With Mitchum,
pifl'
™
+u
With Keenan & Clary, Inc.
Flan—there are, a thousand and
,Pu>yeR-Bl.the4bine$iof the-Ruhr-layed,
D.
elected
York,
California
the
of
man
types of civilian and mili¬ discussion.; Following this, a series regional conference to be held in
with an almost total lack of con¬
of
departmentals will be held Los Angeles May 12-14.
tary aircraft including Republic
if
*
if
sumer goods except at black mar¬
<
'
through Sunday, ending on Mon^
P-84,
Lockheed
P-80,
North
ket prices, and an uncertain, in¬
R. A. Reid, Vice-President of
American P-86, Boeing B-50 and day, April 19, with another gen¬
ternationally worthless, currency
eral assembly.
All sessions wiR the California Bank, of Los An¬
Boeing 377 Stratocruiser. ";
^
has made work, especially hard
be
closed.
A.
P.
Giannini. geles, recently completed his 25th
To
provide
the
production
nec¬
work,
most
unattractive
to
the
founder-Chairman of Bank of year of service with the
bank
essary to meet its large backlog of
average person,, All Germany to¬
where he is in charge of the Long
America, will be guest of honor.
government
orders,
Lear
plans
to
day is marking time, waiting for
if
Beach Office. Starting his bank¬
i=
something to happen or for some¬ expand its facilities through the
T. E. Ivey, Jr., Vice-President ing career at the Bank of Mont¬
acquisition
of
several
other
com¬
body — somebody else — to do
real, Canada, in 1921, Mr. Reid
of California Bank of Los Angeles
panies. It will be Mr. Gearhart's
something that will set the eco¬
today
(April 1)
40 joined California Bank's staff in
function to investigate and nego¬ completes
nomic stone rolling again.
1923 and after various promotions
tiate for these additional facilities. years of service with that insti¬
Add to all this the uncertainty
tution where he is a director and was appointed branch manager in
about the eventual ownership of
Indeed, the low productivity of
the mines; the political agitation
the labor force on hand is the No.
surrounding the choice of the new
1 problem of the Ruhr
today. In German
Management Group in¬
a
recent
from
10
ff
President of
Co.
Angeles Chamber of Com¬
merce, American Institute of
.
a
work,
of
Orleans, La., was increased March
Turkey.
Higgins In¬
dustries, Inc.,
of low productivity
cause
Ruhr
sumer.
were
inclined to
dropped
get—at least on paper—more than
twice
the
amount
of
calories
Of those who stayed, large num¬
bers proved to be a burden rather
than
figure
Insufficient food rations
;
,
the Euro¬
of
primary
re¬
black market.
of
Consolidated
brief stay, either returning home
cesses
month's time,
which
,
the
a
Food Insufficiency
nature, de¬
again after a
in
than
daily output
of
primitive
disappearing
food
in little
re¬
state
or
fresh
ex¬
of
mines
has
Bank
Gearhart
An
29
available
the
Such
American
tional
tion.
finding that they could obtain
only temporary billets, frequently
serted
money
stocky the capital of the Na¬
new
general
from the
country has been hampered great¬
ly by a desperate housing short¬
age.
Thousands of newcomers,
very
in
ground.
cancer
Incorporated,
products
organization.
Los
if
Through the sale of $500,000 of
The conference is to be held April
way.
shortages
spread through the British zone;
have been at least partly success¬
ful. However, the influx of labor
recruits from other parts of the
a
coal
Recovery Program.
radio
latter
Club.
%
t}
t}
products.
under
as
Berlin
the
or
been
began,
isting population. Extensive
cruiting drives were therefore
ganized in the other states
below
Frederick
Then the in¬
the
pro¬
the
Gearhart Director
of
one-half
the bank 23 years ago.
A call has been issued
located,
was
and
pean
mined. Thereafter another decline
more
food
But in the last analysis it is the
phalia, where the Ruhr district is
vide
continues,
of
human factor that.will determine
the future of the Ruhr as the hard
core
the
and Los
electro-me-
postwar
Rhine-West
the hop,
as
method
investment
large
shortly after he joined
chanical
Nov.
North
long
Depait-
October,
The
of
As
jump
Trust
the
with
sociated
particular November, were
peak months in postwar produc¬
got
production targets set for 1947-48.
State
in the
already been
decided upon and its implemen¬
tation will become an
integral
nart of
the European Recovery
Program.
V/.';
and in
required
and
investment
an
centive
system
devised at the
Washington Coal Conference was
put into effect and a new upward
women, chil¬
disabled men,
are
which
—
or
now
large
a
fad been exhausted.
for the vast majority of
market,
be achieved
above
supply of CARE
packages set aside for bonus dis¬
tribution to
deserving workers
gestion does not mean a corre¬
sponding affluence of the labor
Stability,
materials,
especially; steel
pit props, is required to halt
he progressive decay of the mine
installations and equipment both
To
when
opera¬
oscillate in unison.
manpower
densely populated than they have
ever been.
Yet this human con¬
necessary
output barometer will continue to
a
to month in the winter of
was
amputated?
abundance
distribution
f
the lack of such,
or
unsatisfactory state of affairs. In
fact, the Ruhr problem in all its
aspects—technical, financial, po¬
Who wants to
in a cur¬
situation.
wa'chword.
skip
sup¬
in
"Constitution." As Senior
save
foreseeable future—should be the
ically sick friend, rises and falls
exact and immediate relation
to
this
than
cannot
crit¬
watches the fever curve of a
immediately
drastically
food
rather
of
Mr. Ivey is also a member of the
ment since
sooner
the
and indeed the whole world
as
anxiously
as
one
rope
Jr. has be-
Vice-President
New
Atlanta
It is also imperative to stabilize
figure of the Ruhr, Which all Eu¬
D. Boylston,
Trust Officer, says the
performed and the road is
cleared
for
savings of lasting
value, the better.
months.Experience has
shown that the daily coal output
ing the Ruhr again a going con¬
cern.
Unfortunately results can¬
not be said to be commensurate
the finance committee and Treas¬
State Vice-President of the Amer¬
cannot
a
tion is
recent
Asso¬
$500,000 of new stock.
its
increased
C.,
tion," Mr. Boylston has been as¬
be
The
Bureau,
Men's
charge of the trust department of
the Trust Company of Georgia, of Banking,
Reserve City Bankers
Atlanta, it is learned from the Association, and is a former Chair¬
is certain—that sooner or later it
will
working performance of the Ruhr
miners, a number of incentive
schemes have
been
devised in
Business
Business
capital March 3 from $1,000,000 to
$1,500,000
through the sale of
about which only one thing
rency
Downtown
reform that would give
a new incentive to save
buy all he wants.
money and
'
sweeping
better
geles
urer
lasting effect
by
Na-
he
make
the
individual
the
increase
.
if
Thursday, April 1, 1948
■
Association, Group 5, and former
the miner
even
It-Mi*
"Constitu¬
currency
above
kept
be
must
ground these days than before
particular the Ruhr. Ever since
the first steps were taken toward
a
merger of the American and
British occupation zones in Ger¬
many, a year and a half ago, top
military government officials of
both countries, and their tech¬
nical staffs, have combined their
energies and concentrated their
attention on the problem of mak¬
be achieved
could
which a
overground installations as well
substantially larger amount of coal
as because of widespread malnu¬
can be obtained to supply Europe's
trition, a far greater number of
needs and provide a solid founda¬
only source from
The
fit*
ciation, and the Hospital Service
of Southern California (Blue
Cross), being also Chairman of
Alfred
Probably the
steps are required.
Southern
&
S.
Charleston,
constructive
more
mcst immediate and
points
that, due to the bad repair of
Minister
the
and
Bolder
In this
and shift to 0.86 tons.
son
connection,
aid
Currency Reform Needed
the
mines,
V
tional Bank of South Carolina, at
c o m e
of the total working force
from the United States,
averaging two and a hall million
tons per month, can be exceeded
or even maintained in
1948.
import
Citizens
The
policy, based on CARE packages,emergency
food
rations,
pre¬
miums
and
promises,
has
not
worked.
It may have a soothing
effect but it is not a remedy.
In terms
1947.
in June
tons
for the tragic,
cure
thing is certain: the stopgap
underground worker and shift
1.97 tons of coal, it was only
1.17
wonder
no
confusing plight of the Ruhr. One
At
338,000.
was
and
1938,
of
year
however, produc¬
tivity
was
down
almost 40%.
Whereas in 1938 the average yield
im¬
coal
the
of
production
the same time,
to
ballast, provided
as
one-half
about
coal
shipped
war
peak
*
(Continued from page 25)
There is, to be sure, no panacea
districts than in the
Aachen
*
News About Banks and Bankers
Why the Ruhr Is Lagging
and
1'
as
a
Forces
in the
during World
service
Second Lieutenant, he
returned to the bank and in
was
promoted
elected
later.
in
to
Cashier
1923
and
Vice-President five years
He also holds directorships
California
Trust
Company,
Widgeon. Land -Company, Los An**
1936, elected Assistant Vice-Presi¬
dent
was
a
in
last December
1943, and
elected Vice-President.
member
of
the
Long
He is
Beach
Chamber of Commerce Industrial
Mayor's
Committee,
the
Committee,
board
the
Travelers
Treasurer
and
Special
of directors of
Aid
Society,
member
of
and
the
board of directors of the Kiwanis
Club.
,
—
.
.
;
i-;
Volume 167
Number 4686
THE COMMERCIAL
&
CHRONICLE
FINANCIAL
(1457).
41
Indications of Current Business Activity
The
following statistical
shown in first column
tabulations
production and' other figures for the latest week or month available (dates
or month ended on that date, or, in cases of
quotations, are as of that date)
cover
either for the week
are
.
AMERICAN IRON
AND
STEEL INSTITUTE:
4
Indicated steel
operations
(percent of capacity)
Equivalent to
-Steel
—_____
(net
■''/
.
;
,
stills—daily
output
—.
distillate fuel oil (bbls.)
Residual fuel oil
(bbls.), at——
ASSOCIATION
OF
at.
AMERICAN RAILROADS:
freight loaded (number of caps).
Revenue freight rec'd from
connections (number
CIVIL^^ENTHNEERfNG . CONSTRUCTION,
U.
S.
1,611,400
tnn
1,725,000
krq 400
1
1,705,100
Total shipments
»
5,264,850
5,407,000
5,342,325
5,399,000
4,861,600
4,830,000
15,600,000
15,608,000
15,807,000
14,309,000
2,547,000
2,520,000
2,089,000
8,127,000
5,887,000j.
9,199,000
8,545,000
20
2,531,000
20
20
/
20
7,472,000
7,754,000
9,006,000
9,292,000
113,247,000
.Mar. 20
9,948,000
30,723,000
111,918,000
9,677,000
32,108,000
_Mar. 20
47,603,000
48,546,000
;
109,886,000
104,609,000
9,731,000
34,004,000
10,095,000
31',872, OOt.
42,380,000
'
49,782;000
February;
)
•
i
Slab
/Bituminous coal
and
lignite
Pennsylvania anthracite
STORE
-
Unfilled
output,! all
orders at
end
of
844,041
OF
740,829
Month of February
5'i:
ENGINEERING tfNEWS-
Vi"
BANKERS
$137,910,000 :1
_Mar. 25
'
'69,598,000
j.
$128,741,000
32,729,000
_Mar. 25
68,312,000
57,589,000
63,630,000
38,877,000
.Mar. 25
4,682,000
18,712,000
$60,132,000
STANDING
-
49,139,000
v.*
33,639,000
79,602,000
*
! Imports
STREET,
r
,
INC.
t
20,753.000
51,890,000
Domestic
5,740,000
Dollar
V,
•'
■
■/;
—-7
_Mar. 20
4,360,000
(
■*
_Mar. 20
.1,182,000
j,
_Mar. 20
47,900
**r —•
_H--
&
,
-Mar. 25
—Mar.25
13,314,000
1,214,000
O.
12,900,000 t
1,229,000
-
v!
*122,700
'
.
Lead
tin
(New
(New
106
iU0
,■
93
63
,w
57,081
$105,190,000
$81,567,008.
:
.
PAPER
34,539,068
11,749,(W
12,524,008
104,008
12,537,000
7,340,068
$252,827,000
$262,031,000
$230,031,008
.
,
■
>
•
OUTSTANDING—FED-*
OF
NEW
YORK—
", ".
of Februaf-y 27-i_—-^-—
SEED
DEPT.
——
(tons)
OF
'
•
.,'1'
.
Y*':■' 1"}
\
$290,000,000
$301,000,000
..',r
COMMERCE—
'
1
to'Feb. 29—
3,869,610
3,795,325
3,190,799
2,778,869
778,339
1,115,984
(tons) Aug.
1
month
$40.37
————-——
2,918,488
2,467,974
568,212
S£S
$40.00 r*
' H
ultimate
to
December
of
(000's
'
<
consumers—1
19,617,041:18,726,158
17,450,288
$351,460,200
38,431,950
$335,687,200
38,248,940
$311,020,408
21.200c
21.200c
19.349ft
21.507c
21.532c
20.403ft
15.000c
13182ft
omitted)———
Revenue from ultimate customers—month of
December
$33.15
>/
sales
V'vi'. >,
f
$243,000,008
■
Aug. i to Feb. 29——l-L'—♦
Feb. 29—
Kilowatt-hout
2.86354c
2.86354c
:
$40.29
^„———
Number of ultimate customers
$39.50
METAL PRICES (E.
*
Average for
M.
&
month
Dec.
at
31:—
36,140,291
J.
QUOTATIONS)—
February:
of
_
Mar,
24
»viw«*.i
■
A/Tor
9d
Mar. 24
-
21.200c
21.200c
«.»•—
';
71,425c
21.425c
,
at_
21.200c
21.225c
21.575c
22.450c
94.000c
70.000c
15.000c
15.000c
14.800c
14.800c
.
21.450C
21.450c: ,,;
•
at_/4_
.Copper (per pound)— / V ...
Electrolytic, domestic refinery
Electrolytic, export, refinery---—
Lead (per pound)—
York
New
.St.
', ,14.800c
and Sterling
Silver,
New
Silver,
London
PRICES
15.000c '
—~—-r
Louis
Silver
Exchange:;'-■ .';i
York
(per ounce)
,14.800c—
74.625c
—
ounce)£
"Checks"—
(pence,per
Sterling Exchange,
:
12,9820
"
74.625c
72.329C
45.000
45.000
44.475
$4.02514
$4.02679
$4.02625
■,
i Tin
(per pound)—iNew York Straits—
Public Utilities
Group
Industrials Group
MOODY'S
-
;
;
U.
S.
BOND>
TIELD
DAILY
-------.----Mar. 30
Ln
BaaPublic
114.85
110.70
110.52
103.80
103.47
103.64
106.21
105.86
113.12
112.93
115.43.
115.24
3.09
|JJ
__Mar. 30
Mar. 30
2.81
.Mar. 30
2.90
.Mar. 30
3.13
.
_.Mar. 30
Railroad
115.04
'/
New
Go'.d
"
Group-.
Group.
Group——.
J-
'
->
3.13
2.84
i 2-91
_
'9'
v.-.
3.38
_Mar. 30
; 3.00
3.01
.Mar. 30
2,88
2.89
3.40
/r:,
_
'
'/-/3.C3
Magnesium,
Zinc
/
,,._
-
3.01
commodity
national
J^ar. 30
J
-412.2
...
69.125c
$35,000
$35,008
$76,409
$78,303
S86.S64
36.120c
36.082c
31.190ft
33.000c
33.000c
v 33.500c
33.500c
28.625ft
Nominal
Nominal
Nominal
;
■
-
1
$68,864
$1,800
BUSINESS
INCORPORATIONS—DUN
STOCK
-
Feb.
28
firms
~
—
20.500ft
12.000c
11.077c
10.508ft
$28,110,578
$28,867,631
$28,262,1^
10,126
12,112
j
.*
h- ■"
•
11,000
—
'"$'';%■
accounts^;!
bttlance&ii—
debit
1
I-
and
free
(.•
$536,636
credit
"*$567,769
*
56,409
*414,137
*622,246
66,090,349
136,232,046
56,968
U. S.»
Jn
/
'
shares——
listed
of
U—lrc
banks
in
396,428
596,416
63,158,207
Market value Qf; listed bondsprice lndex,,,12-3l'24=10G
136,313,176
Member borrowing's on U. 8. Govt, issues—_
jvicmuci
Member
borrowings^on
ouiivwineo w« w^v*
other collateral•
;
'■
Stock
^xi.77
and
233.3
dr_„—„
Farm
•'All
•■
156.8
—
?
_Mar. 27
233.4
•
'* '•'
5>
!/'- 143.7 H!".:.!
137.7,
143.7;
••"••••
-~o
*
combined--
■-'■Hvl':'.!-'':, '
".
/.;
-T'' v'
156.8
137.6,
—:
machinerygroups
'
r-,
;
!
\
232.8
203A
157.0 / '
154.5
iot.o
137.6
128.0
133.7
143.0
/i
/
1001
PAINT,V?VARNISH)l>^ACQUER
REAL, ESTATE
200.5
H
Orders
(to(
OF
BOARD
—
Banks
Percentage
U.
and
Mutual
Trust
AND
,
LOAN
HOME
—
of
DRUG
REPORTER
PRICE
100
•
■-
i-.
-•
:■
INDEX—1026-36
•
•
i.-
u
r
.j
'
:•
/;»;
"{
Farm
'
Companies-—i———
——!
lending
184.9..
171.2
■
';
:; Metal
and
metal
products——
and
allied
Housefurnishings
Miscellaneous
»
Shipments
and
187.1'
of
goods-
STEEL
143.7
(M
Raw
groups—
For
materials
Manufactured
of
(DEPT.
products
226,068
253,110
61,561
230,492
49,317
161,773
128,828
other than
farm
•Revised figure.
products and
113,224
$1,006,626
$847,043
OF
150,538
140,05$
158,842
136,048
,COM-
equivalent)
at
end
of
ft.,
logs
log
(M ft., log
scale)
(DEPT.
at
OF
scale)—__
31_!—
Jan.
(short
orders
;
tons)
sale
.
tons)
(short tons)
at
*65,085
64,091
*216,106
137,669
t
jl1'®
I
s
.
tons)—*—
for
68,399
188,647
COMMERCE)—
January:
(short
30,712
*31.479
end
, -r
,.
.
of
,
. ,,
.
141,068
148.124
139,020
108.282
110.970
101.140
32,786
37,154
491,745
489,364
489,364
37,889
month
....
,
.
other-than farm products
44,761
160,297
165,973
144,342
i—
prpducers' own use
(short
All commodities
commodities
sale
Unfilled
articles
All
'
■
52,155
January
.
For
Semi-manufactured
■
$246,114
79,345
36,674
CASTINGS
Month
119.5
Shipments
Special
i
$302,275
79,812
ft. %-in. equivalent)—
consumption
(M' sq.
ft.,
month—
Consumption
136.5
commodities
*■
$263,649
sq.
equivalent)
(M 8q.,ft., %-ln.
Stocks
192.5
products
%-in.
Stocks
/V;v 155.9
Building materials—^
Chemicals
(M
131.7
-
/
Production
.
145.9
lighting materials—^..—
of
159.8
,.
v
•
Fuel and
•"
■■
PLYWOOD
MERCE)—Month
; Hides and leather products
v
$83,788,171
1■""
Jan.,(000's omitted):
'
products
•••:.' FoodSl_J
-
*$68,628,287
BANK
——
V7,,
SOFTWOOD
commodities
/''■
f>
$88,473,000
Total
WHOLSALE PRICES—U
All
81.1%
$86.30$
1 ^204,554
/
-—Mar. 26
..
ss
...
"""
•
Banks/ ———1
Savings
Miscellaneous
AVERAGE
8.
Month
Individuals
OIL, ( PAINT
-
7,825
'
681,134
$63,062
222,255"';!
„
;.-?V'T '•>?
$572,91^7
'
NON-FARM
IN
and Loan Associations-——
Insurance companies __u——
Unfilled orders
;
.
Savings
received
Production
AREAS
FINANCING
73.9%
$74,121
217,026
/ •/.
126.3
•t
%
'
AND FILLER
ior.r
(DEPT.
OF *.vmmt.ivvu»—
i. ut
COMMERCE)—Month of Jan.:
v Total'sales
reported by 680 establishments—
National paperboard
.!
15.00 Oft
margin
net
Total of customers'
Chemicals
$1.66364
( 000's omitted):
«
Market value
Building materials
$1,800
15.000c
.
EXCHANGE—
carrying
hand
■;
$1.63864
20.500c
Credit extended' to customers—"
'/H Fertilizer' materials—;^—
Fertilizers——
$1.61364
15.000c
&
BRADSTREET, INC.—Month of January
413.4
fertilizer
of customers'
.
$1,750
$1,775
TREASURY
—
(000's omitted)——
31
$58,000
-
20.500c
Louis.__——„
CIRCULATION
,
.
28.250ft
$66,000
$1,750
$1,775
(per pound).
Jan.
70.000ft
93.500c
$35,000
2.90
407.4
(
IN
94.000c
93.500e
——
plus, Ingot (per pound)!—;
ingot
DEPT.—As of
<
NEW
moody'S
w t
pound)—-East*8t.
ipett
MONEY"
3.42
•'
price)
.
Aluminum, 99%
v
H.;iv
3.14:/.;
•"
3^54
1
_Mar. 30
IS
3.11
2.90
3.52
■
Utilities
Industrials
|||
2.83
v
...
v/iM
i
I
99%
or
U.
V
S.
v
uunvu
Antimony (per pound) bulk, Laredo—-—"- ;
Antimony (per pound), in cases, Laredo—£
Antimony (per pound), Chinese, Spot,—-__
Platinumj refined, per ounce---—>
tCadmium (per pound)—
JCadmiuni (per pound)—
SCadmium,(per pound)—
——-7---
112.93
,115.04
.
vv
Wi'
'
94.000c
*
Chinese
ounce
V JJCt
Quicksilver (per flask of 76 pounds)-—
HAntimony (per pound) (E. & M. J.)—1
105.52/
,
York,
(per
UU.U
AVERAGES:
Govt. Bonds
Average corporate.
r
H5.04;
110.70
*
-i•
*
$163,775,008"
16,504,000
—'
——
—
'Ml
'V'
:K:r
credits—
EDISON ELECTRIC INSTITUTE:
10.500c
MOODY'S BOND
67,562
$167,840,000 $168,108,000
42,742,000 ^ 53,198,000
11,344,000
11,081,000
12,551,000
15,657,000
1,846,000 1,450,000
,
warehouse
ERAL RESERVE BANK
>
3.2391UC
/
3.23940c3.23940c
V;
II it
4 ^ "If
$40.25 Hx
' SSS
$39.75 Hi;
1 '
.
York)
York)
72,224
134,200
t,\
*
3.23940c
>'
$40.29
Mar. 23
ISe'riat
*
76,07*
162,46t
■/ H
' '
''
Total
1,165,000
<E.;& M. Jr. QUOTATIONS):
—
55,085
12,918,000
131,700
\
'
,
,
/
Mar/23
.
V
^
3.23940c
^^3.239400^;^
_Mar.
Mar. 23
Electrolytic copperDomestic refinery
ac__;_^_—/—_v__———/—
<
Export refinery at—
Straits
f!'-SX
^
f
V
___
,\;rK
:
'
hhH; 101
—
-—
METAL PRICES
65,198
84,431
53,473
BRAD
-
"
I
71,505
68,396
Fdtfruary 28—
"*
foreign- countries
t
INDUSTRIAL)—DUN
steel (per
(per lb.)_____——
lb.)-__
Pig iron (per gross
Toss ton)—
ton)
Scrap steel (perr gross ton)i.—
ton).
,
-
66,784
$90,266,000
—
Stocks
Finished
'"!■
j
SYSTEM—
exchange C-w-r-——4—
on goods, Stored and
shipped between
Based
l"'
:
INDEX—FE
—
5,030,008
(tons).:
RESEVE
Exports -ii—
Domestic; shipments
i
26,493,000
•
27,712,000
i
MINES):
IRON AGE COMPOSITE
PRICES:
6,422,068
5,613,036
GOVERNORS
OF
(in thousands)—-!
AS of
—
'
Crushed (tons)
:'ty
*7,472,776
5,410,438
'
/ACCEPTANCES
OUTFED. RESERVE BANK OF
Received at mills
;
6,940,653
DOLLAR
NEW YORK
$90,318,000
.IMar. 25
FEDERAL
1
;
_Mar. 25
THE
COTTON
r
126,430
(tons
—i.
period
BOARD
—
719,990
ill-:
AND
grades
;
*^i;;
(COMMERCIAL
138,066
-
lbs.)____
DEBITS
flC AS
FAILURES
LURES
139,588
INSTITUTE:
Shipments (tons of 2,000 lbs.).
Stock at end of period (tons).
805,376
(tons
SALES
*
•
•_
smelter
2,000
COMMERCIAL
DEPARTMENT
STEEL
INSTITUTE, ING.—Month of
^
.
711,433
(tons).'£_/£^/'
Beehive coke
zinc
Of
4
797,033
ezzoMISESH:
OF
Ago
January:
•
AMERICAN ZINC
689,062
municipals
(U. S. BUREAU
of
ingots and steel for castings produced
(net tons)—Month of February.._
Shipments of steel products, Including alloy
and stainless
(net tons)—Month of Jan.:
5,240,250
5,344,000
20
of cars)———Mar. 20
constjruction.
OUTPUT
Year
Month
(DEPT.
Steel
20
20
.
federal
AND
700,482
—
»v
PRODUCTS
(thousands of pounds)-
IRON
___-Mar. 20
construction
i---.
construction__-_;_-L.„>^_'i:£^^_^_.i_!—
and
WROUGHT
COMMERCE)—Month
BANK
*
(
constwcttoiW-'-iL-ifwLtiii;—;!
■
/
4
Previous
Month
ALUMINUM
95.4
94.6
n
•
Revenue
COAL
Ago
_Mar. 20
_
oil and
State
Ago
95.7
•
________——
Public
Week
89.4
4
_
Latest
AMERICAN
—-
Total
Week
T
i
of 42 gallons each)——Mar.
average (bbls.)
—————Mar.
(bbls.)__
Mar.
output (bbls.)
Mar.
Gas oil and
distillate fuel oil output
(bbls.)—*—i
.Mar.
Residual fuel oil output (bbls.)
:
.Mar.
Stocks at
refineries, at bulk terminals, in transit and in
pipe lines—
'Finished and unfinished
gasoline (bbls.) at———_
_Mar.
Kerooine (bbls.) at_.
Private
Year
OF
Kerosine
Gas
Month
April 4
tons)———_—April
AMERICAN PETROLEUM
INSTITUTE:
Crude oil
output—daily average (bbls.
Crude runs to
Gasoline
Previous
1
ingots and castings produced
-
Latest
.365,%7fcV
averia^ef*'
tBased
on
*Revlsed figure. tBased1' on the- producers' quotation.
tBased
on
the
of the producers' and platers' quotations.
SBased on platers' quotations. DDomestK, ';
131.3 | five
tons
t{Monthly
or
more
average
but
in
less
year
than
1946.
carload
lot,
packed
in
cases,
f.
o.
b.
New
York.
'
42
&
THE COMMERCIAL
(1458)
FINANCIAL
CHRONICLE
Thursday, April 1, 1948
its tasks under the new
McCabe and
Szymczak
which
all
quired
to
what has been known: That Presi¬
stead
to
would
banks
be
their
to
cash
Since the first several sessions
of the hearings starting
March 3
dealt exclusively with the work
of the Office of Foreign Liquida¬
which
Commissioner,
supply
W.i
&
¥'4
f
f
Chicago and
measure
On
found
visitor at
early hearings could tell,
McCabe's position on Federal
serve policies was a
blank
there
was
could
even
no
evidence
read
or
that
write.
the
Mr.
Re¬
and
our
success
"As
is
functory attention to the renomination of;Mr.,M. S. Szymczak for
a full fourteen year term as Board
Member; Because Mr. Szymczak
had been a Member of the Board
he
striction,
return
When
statement
in
on
clerk read a long
the OFLC prepared
tile
Senator's name; and a
later Mr. McCabe had the
week
.
a
same
clerk read
a
long reply pre¬
pared in his own name.
During a subsequent hearing on
March 24, in reply to questions
Mr.
McCabe
revealed
that he
ing
capital. Notwithstand¬
certain, effect,
many
on
favor
jankers
the
this
method
Hon. C. W.
Tobey
John W.Snyder
dealing with the
present problem of too easy' bank
credit.
on
of
means
a
objection was ex¬
certain
Committee
who
felt
that
he
had
.
;
duction, and particularly more
production per man-hour, is the
most effective way to deal with it
as
by
enough in his present
positipn. However, when the mat¬
ter came on the floor no objection
was raised and Mr. Szymczak was
confirmed.'
over
Board's special reserve plan
some
members
however, would mean
the earnings of banks
this,
long
been long
below expenses and a reasonable
the first hearing opened Senator
Tobey had
so
Mr.
Szymczak,
returned
to
the
who
last
Board
year
from
a
special assignment as Director of
the Economics Division of OMGUS
definitely
under control by providing addi¬
supply side. This means In Berlin, first came to Washing
I
government economy and ton at the invitation of President
in < * 1933.
When
the
deferment of all deferrable ex¬ Roosevelt
penditures. It also means as large Banking Act of 1935 came into
tional
a
for
need
"The
supply
money
bringing
the
more
over
the
result of this study there
a
question in
the
j
many mind condesirability of the'
principles of regulating and
controlling bank ' holding conl- :
panies especially those whose Cx-;,
pansion programs are inconsistent;
with principles of adequate and *
sound banking. /
.U.
no
cerning
■
With the spotlight on Mr, .Mc¬
Cabe. the Seriate paid only per¬
pressed
homework
my
certainly worthwhile from the J
standpoint of the possible future
administration of the Act.
"
;
in reaching
Szymczak Confirmed Without
\;:,V
Hearing .V'/'-'lv
tain of effective bank credit re¬
reducing
Mr.
but
.
the
1
broad
'
f
'In
I
"
'*
arriving at this conclusion
have
,
a
J
former associate of
Eastern holidays a little difficult
our success
v
had
In fact, so far as
a
which
the goal of sustained prosperity."
M. S. Szymczak
alternative to the spe¬
an
Lie
selective mine in government ,service.
to
use
in find¬
ing ways to deal with these prob¬
lems will depend in no small
reserves,
permitted to hold
income-producing assets,
^Jboma* B. McCabe
namely short-term Government
obligations.
The proposal has
come
to be called the Board's
special reserve plan.
"As
the
different from those of a few
years ago.
ranks would be
Mr,
over
and
money
Amberg, as you know; collabo¬
If this be so, co¬ rated in drafting the recommen¬
operation will - be necessary be¬ dations of the Reserve City Bank¬
tween the central banking author¬ ers on this legislation.
\
ities and other agencies.
:
'Since I am not a lawyer and '
'The problems which monetary much of the reading material is
and credit policy must face today
expressed in legal language,
I
headed, and since cial reserve plan, the Board in its
945 and 1946 annual reports also
those sessions produced no direct
asked Congress to raise the limits
cross examination of the nominee,
the public found the procedure to which required cash or pri¬
most
unusual;- and
even
Mr. mary reserves may be increased.
0 increase required cash reserves
McCabe began to wonder whether
the strategy was to wear him out. : :ar enough*to be relatively cer¬
McCabe
of
controls over
credit is put.
are
re¬
hold, except that in¬
being legally required
certain
Board member.
tion
of
add
Harold Amberg, the legal counsel.
of the First National Bank of -
,
Very simply, this plan involves
temporary increase in reserves
dent Truman asked his
opinion, on
Mr. McCabe's qualifications as a
the
of
a
repeated
merely
because
great increase in the public debt.
Treasury John W. Snyder. But
the latter, obviously determined
to disclose the minimum possible
information,
lost
been
nave
IPs
page)
(Continued from first
ing who "decapitated" Mr, Eccles,
called as witness Secretary of the
•M<>
controls
traditional
of
Credit Control
on
conditions
which we face in a combination
been;; particularly
by
pressed
the
extensive
im- I ' '
study, j ^
which the Board and its staff have
^a
given to this general sub j ect over
the past several years. There appear to have been
innumerable " v;
,
discussions
of
the, matter at the ,
Board itself, as well as between
representatives of the Board and
of
other governmental;>
including the Justice
Department, the Comptroller of I
agencies
the Currency and the FDIC.
Federal
Advisory
Council
.
The
,
also
v
has studied the Bill and I under-
that
stand
!
certain' amendments
"
suggested by the Board and :
approved by your Committee as
were
surplus of tax receipts as pos¬ effect Mr. Szymczak enterd upon
sible, so that dollars are removed a new 12-year term as Member of a result of the Council's recom¬
favors as much decentralization
problem of appro¬ from the spending stream and the Board of Governors in 1936. mendations on the subject. Out¬
That term came to an end Feb. side the government, the need for; as possible in the operation of
the priateness of our existing system used to retire public debt held by
reserve
requirements.
This the Federal Reserve System. This 1, 1948. Thus Mr. Szymczak has bank holding company legislation 'I"!"
Federal Reserve System. He made of
it, clear that he believes in co¬ scheme has long been recognized akes dollars out of the money served more than fourteen years. seems to have been urged upon,,'.;
From a well informed source the Board and * the Congress by
'
operating with those with whom as inequitable in certain respects; supply by an equivalent amount
he must work at the Board's indeed the System has engaged in and is a reversal of the wartime the writer learns that Mr. Szym¬ the Association of Reserve City '
chairman. He thought that the many studies of methods to im¬ process by which the money sup¬ czak was Governor Eccles' choice Bankers,
the two Independent . ; '
Board's government-bond support prove it. Ultimately, it will be ply was expanded. The classical as Vice-Chairman of the Board Bankers Associations, some 10 of
:
policy of last December was wise. desirable to have our reserve re¬ precept of sound finance; that at the time Mr. Eccles' expected 112 State Bankers Associations, the But, as for most other FRB prob¬ quirements based on the type of debt should be paid off in boom to be reappointed to the Chair- National Association of; Super¬
lems about which he was asked, i ranking business conducted by a
imes, bar peculiar virtue* in,:the man's post; and that he was also visors of State Batiks and by a
McCabe's
choice
as
Vice- considerable number of independ- :
the nominee stated that he favored bank rather than on the basis of case of a public debt the. size of Mr.
ocation, as is now the case. But ours, so much of which is held Chairman. With Governor Eccles erit bankers throughout the counhaving careful studies made be¬
this is a complicated matter, as by the banking system. ; P • •
fore committing himself.
away on leave Szymczak is now try. I understand that various of
>
;
matters of equity invariably are,
Chairman pro tem. of the Reserve j these organizations have contrib¬
Commends ABA Program
The Special Reserve Plan
and will take time to remedy,"
Board.
uted
suggestions
affecting, the
"As
Mr.
Asked about the controversial
you know, curbing of in¬
Szymczak emphasized.
;
1 With the testimony of Secretary draftsmanship of the * Bill, some
he
authority
level
of
for
bank
regulating
reserves
has
also raised the
"special
chairmanship and leadership, Mr
McCabe
favor
flationary pressures cannot be ac¬
plan" advanced
under Mr. Eccles
reserve
by the Board
testified
that
less
some
method
he
would
controversial
of
strengthening the
over credit, should
v :j such strengthening be necessary.
Board's control
Money Supply Excessive
"Meanwhile,
uation of
an
confront a sit¬
excessive and highly
expansionary
we
money
supply, and
measures
necessary
priate private
are
appro¬
decisions. Bankers,
example,
must ask them¬
of
regulating > growth of bank selves whether, as a group, they
credit in the public interest, with are extending credit on a sound
the object of preventing recur¬ basis—credit which will stand up
;he problem is to find
some
way
for
Mr. McCabe's observations on this
point illustrate his philosophy of rent outbreaks of inflation. Either in whatever storms are ahead of
seeking the smoother way and the Board's special reserve plan us. In this connection, I commend
to your attention, as well as to the
making as few enemies as pos- or authority to raise further ex
sible.isting reserve requirements seems attention of bankers, the program
to be the most feasible, available formulated some time ago by the
It must be noted, of
course, that
restraint for this purpose, taking American
Bankers
Association,
^
the new chairman will preside
into account the over-shadowing and the joint statement on "Bank
over a Board still
largely disposed size of our
public debt.
Credit Policy During the Infla¬
to favor the special reserve plan
1
"There has been little need for tion," issued Nov. 24, 1947, by the
Not only was that plan advanced
increased
reserve
requirements Board of Governors of the Fed¬
in the Board's annual
reports o::
during the past three months be¬ eral Reserve System, the Comp¬
1945 and 1946, and
through Mr.
cause of the Treasury's favorable
troller of the Currency, the FedEccles last year, but as
recently fiscal
developments. which have era! Deposit Insurance Corpora¬
as March 19 in the Federal Remade possible' a substantial re¬ tion, and the Executive Commit¬
/ serve Bulletin the Board again
tirement of bank-held public debt tee of the National Association of
expressed its opinion that it needs
Such retirement has
temporarily Supervisors of State Banks.; ; y
additional powers to Control cred¬
against
bank I "I suggest that the reconstruc¬
it on the:theory that We are still exerted: pressure
credit expansion. But in the fu¬
under
tion and strengthening of policy
predominantly inflationary
.
pressures, leaving the clear implication that "a man convinced
•
against his will, is of the same
opinion still." This impression is
fortified by comments given the
writer only a few days ago by
Governor Matt S. Szymczak; who
during Mr. Eccles' March vaca
tion served
man
pro
as
the Board's chair
tem,
Szymczak's Views
Questioned by the "Chronicle
concerning the Federal Reserve
ture
this
type
of
pressure
wil
be available in the same de¬
gree, and bank' credit conditions
may become unduly easy. If this
not
should
happen, the need for
Some
special,
additional restraint Wil.
be urgent. It; is better to have
authority to deal with a situation
as it develops than to have au¬
thority provided, if at all, too late
to
be
used." - (What Governor
Szycmzak here had in mind
course, was the pending Act to
reduce tax
on
revenues and
its effect
the- surplus.)
Snyder
interroga¬
renewed
controls oyer the use to which the
credit supply is put also requires
careful and conscientious .study. I
do not
suggest that We keep
reaching out for more power, and
controls, but I am aware of
the fact that in honestly and sin¬
more
promote eco¬
seeking to
cerely
nomic
stability at a high level;
techniques
may
perhaps be devised to meet the
Changing
situation. V Fpr many
years the Board has been able to
new
effective
control
into
the
the
flow
of
securities
bank credit
of which
the
Bill,
basis " of
are
already included in;
while
c e r
others
form
Senator
Tobey on Tuesday an¬
the hearings ended.
A
vote would be taken within a few
the
t a i nV amendments
which the Board is even
now pro-
:
posing to the Congress. 1 find that
the bank holding companiesV
nounced
,
even
days, he stated.
Both SenatorTobey and Fulbright duidng the
themselves
hearing this week evidenced the
strongest determination to fight
for enactment of the bill S.829, a
pf; the Board relating to the terms
of this proposed legislation. Finally, your own Committee has voted
have
discussions with
tak'en
representatives
>
unanimously to report the Bill
favorably to the Senate. ' v, r v '
*
ize bank holding companies
"In the light of this extensive :
background of expert study and
support for the Bill I am without
hesitation in renewing my previ¬
considered to
be aimed
at the Transamerica
interests. Tobey stated bis doubt
as,to the efficacy of the Buck
amendment which would author¬
with
in state limits.
ous
endorsement of the principles
-
,
primarily
measure
"■
part' in'
*
I ot the Bill and to state my coh-week's hearings Mr. McCabe did
elusion that there appears to be athe requested "homework" on the definite need for early Congrespending bill. After briefing at the sionai action m this field. I agree.
Federal
Reserve
B o a r d, > Mr. that the Congress and the bank
McCabe presented the following authorities should diligently strive
prepared statement:
to establish such rules and reguBetween; last- week's~ and- this
;
,
,
•
** --I sx""Ss?s;
of this Committee I have made a
quick
Bank
;
banks;
of the
Holding
Company
Act
S.829-r-and have read the June 19,
T947 report of this Committee to
the Senate: as well as the pub
ssa S
Certainly the. ownership
by bank holding companies of un-
proposed
analysis
-
to a sound banking policy, nor is
it fair competitively for the um¬
•*'
-
related businesses is not conducive:
:
>
*
Ky'r
pire of the game—the government f;
lished report of the hearings held
to
follow certain, traditional *
cb May 26, June 2 and June 11,
policies in regard to the expan¬
1947.
I have also conferred, at
sion
activities
of
independentiI
considerable
length,' with. the
banks and anotherI policy with
members of the legal staff of the
regard to bank holding companies. ?
Federal Reserve- Board who aslisted "in^ tlie preparatTon" of the I
I
Bill; They expressed astonishment I
at my very optimistic hope of
JhnnfrT^p °Wrirtpn
mastering the essential features Quat« T.f.s
!!
•
rp^rvTc
market, and
during the war it was given the
powers over the credit structure,
view
task of regulating consumer cred¬ of the Bill in such a short time, only^th
Mr. Szymczek gave his commen
5c nnVnf thpm PxnrPSKed it- 'We equitable competition between all
it. The Board has recently asked
in detail, saying:
have
been
working
iegisclasses
of
banks
and not forpunipansion, will be especially , great Congress to renew the latter
"In the light of all the consider
if we relax our current fiscal
for more
five years tive reasons. X think that S.829
power, at least so far as install¬
ations, the Federal Reserve Board policy while inflationary dangers
and it win be
to
you [
ment credit is concerned.
,
has: recommended to Congress the
what you want in such a short ^ ^ave already mentioned.
exist," Mr. Szymczak amplified.
•
"It
is
possible
that
central
adoption of a plan which we fee
"Fiscal policy is by far the most
time.'
I have persisted, however,
"I think it only fair, however,
W9pld restore some of the powers effective way to deal with the de¬ banking policy will find the in¬ and in addition to conferring with to point out that I,have,not been
over
the money supply which mand side of inflation just as pro- struments
I
also
talked
with
Mr. | able to become an, expert on the ,
necessary to perform them
Bulletin
article
and
the
Board
"The urgency for the Federal
Reserve Board's proposal, or some
other proposal to curb Credit ex¬
the:
l^tion
■
and
complished by monetary, and fis¬ tion, of Mr. McCabe on the pend¬
policy alone; Among other ing bank
holding company bill
cal
mr^this
tharT
dffficult gtve
I
of establishing
establishes^ the Principles which
-Volume
167
Number 4686
:
THE 'COMMERCIAL
precise provisions of the Bill in a
short period of time. As I pointed
out last
week, this subject is not
,
which has been of particular
one
moment
-Bank
at
of
Federal
Philadelphia
intense
imy
the
Reserve
and
even
of
course
briefing over
j the past week has not
brought me
..sufficient
familiarity
with. the
minutiae pi the problem to enable
me
(i
competently
to
different
w e e n
of debate
course
^it should
.
Will Russia attack the United
legislation in principle.'
Even those who believe
TVygr^ss should
fit to States?
proposed
A
if
d
S.829
pass
can
confirmed,
assure
I
will
you
join
appear that
changes
are
diligence.
has
cept what they read in the
papers.
A great many of
the
in
and
(Continued from page 15)
was
ready for
decline,
but its weaknesses were
limited;
(b) that outside developments,
.however, probably prevented a
sharper decline in the Fall of 1947.
some
.
>partial
that
«*
•
failure
the
rather-
»a
of
the
government
reckless
corn
crop;
engaged
on
grain
buying
program; that many businessmen
..
/• had become cautious
;
was a
prematurely
/.and by mid-Summer
.of requirements; and
advances and
irble
that
rather
a
.discussion,
of
//Plan contributed
short
were
wage
irresponsi-
the
Marshall
to
inflationary
; psychology. Speculative inventory
> buying was resumed by business*men.
*.
■
*
.
.
There
were
also
,
stimulating
factors that influenced the
public.
Retail
trade
^through
showed
rather
a
August
disappointing
trend, but cash payments to vet¬
erans in
September helped stimu*
late sales. Perhaps more
impor¬
tant, the Administration ran such
netted
,
(5)
The
financial position of
business has deteriorated. Despite
|
/ /
'
^
/
/ Weaknesses Appeared--
This ; was- an impressive performance by business. 1948 began
/-with what
everyone regarded as
>'a..high, level of momentum, and
v
.
optimism
was; rrampant.
During
,tJanuary, /Jiowever/ there
was
a
marked slowness in many whole¬
sale markets.~ There was
of
growing uneasiness.
a
,
; February
>
there
was
feeling
Dur.ng
of
one
the
broadest and sharpest declines in
i Speculative markets that; had oc-
-
.
■
^eurred for
men
ers
*
,
/
.-
Business¬
Economic observ¬
as
%
eco-
as
it looked only 60 to;
previously.
v
time.
some
well
nomic situation was not
//
*
as
began to suspect that the
strong
90 days
,
,
?
"There is not much doubt that
the economic and price structure
was
weakened
in
respects
many
during the last 12 months. Very
briefly, here are some of the
r
things that began to receive more
»attention, and that paused quite i a
„
.
ibit, of caution, in business opera¬
tions.
j
;
,
(1) Inventories were much
higher. Total business inventories
,
;
■
at
the
$38.3
record
i
new
to meet its finan¬
cial requirements. Bank loans ad¬
draw
and
corporations
end
(to.. $41.8
// January.
u
-
of March,
and
billion
1947
had
were
increased
at. the
end
had
markets
spite the difficulty in selling
issues.
There
oration
and
of
also
was
current
its equivalent
inventories
able
and
assets.
that
aver
somewhat
still low
as
(2) Prices
small steps
compared with earlier
flected in
peak reached in 1920.
businessmen
be
How could
expected
to
feel
/ fmch
impact
%'
■
">
/
*
develooirent
a
has viini
Declines in com¬
on
affdct rural demand; this was evi¬
dent in. February.
,
.
/It seems to me that .these con¬
siderations justify some sort of
a
conclusion.
there
was
a
We have
seen
that
small decline in busi¬
last year; that this was inter¬
rupted and reversed; but that the
business position at the moment
seems to be weaker than it was
then. I can think of no
good rea¬
ness
son'
why there should not be
other decline
it should
an¬
this year, and why
not be
bigger than the
last year, if nature is, left to
its course. That brings us
to the war scare and its potential
effects.
■
one
take
/
War Not
k
1
,
"
"
Imminent;
not met any
who
is
well-informed
chance of such
much
opment. There is
of
fear that
some
sort
conflict.
there will
in
lag.
locations.
anyone who has
spoken to retailers of almost
description/during
months has been
demand for
the
aware
past
any
12
that unit
increasing number
of items has been slipping.
(4) Exports were declining. The
all-time peak was reached in the
an
second quarter of 1947.
Although
the ERP will prevent the decline
from going much farther, the level
of exports from npw on, arid par¬
ticularly net exports, will be below the peak.
^
/
any
a
devel¬
certain amount
a
incident
an
that
consumption, but
person
honestly believes that there
war
of unit
prices and business
is
veto.
The
budget for the coming
or $4 bil¬
families
in
have
their
meet
is
had
to
be
...
budgeting in order to
living costs. There
much
doubt
that
the
some
reduction will be translated
the
tax
or acci¬
might generate
It
is
recognized
probably be icivil
one
of
number
a
of
It is quite possible that
opposing sides will be backed re¬
spectively by the- United States
and Russia. But it is unlikely that
the
conflict
countries
between
will
direct in the
these
become
near
open
future.
price increases,
in
unit
small
V
volume
or
The
absent
tax
will
be
reduction
either
•
alone
'arge in relation to total
is
not
consumer
spending. In fact, a further drop
in farm prices or a small increase
'n unemployment would cancel it
off.
can
able
listen
revival of inflation.
can
get under
.
'
*
mm*
Equip. Trust Ctfs.
An
Pennsylvania RR. equipment
trust, series S, 2%% equipment
trust certificates due $733,000 an¬
from
restric¬
willingly
underwriting group headed
by Halsey, Stuart & Co. Inc. won
the award March .31 of $10,995,000
nually July 1 1948-1962, inclusive,
and were re-offered by the group,
subject to Interstate Commerce
Commission authorization, at
prices to yield 1.15% to 2.65%,
according to maturity.
to
The
proposals for additional monetary
controls than to proposals for di¬
rect business controls.
the
certificates, issued under
Philadelphia plan, are the
an authorized
final instalment of
$32,930,000 trust certifi¬
series S.
The aggregate
principal amount of these certifi¬
issue of
,;•;•,:' /, S/V;;//;/• :•
X/r
additional $4 billion would
raise the total defense budget for
.
the -next fiscal year to $15 billion
be
Halsey, Stuart Group
Offer Pennsylvania RR.
that inflation
more
a
price structure,
■'
is
being revived, however, would
probably be the signal for a fur¬
ther tightening in credit condi¬
tions.
I
believe that
Congress
would
will
unless
further
credit
on
months
way.
very
up
few
watchful
that some such re¬
adjustment is necessary before a
longer-term period of high-level
activity, based on a less vulner¬
.
;Any sign
next
of
They believe
/ "
refrained
magnitudes involved do
much leverage in the
rather than
;
thorities
small
a
waitiqg. Most
businessmen of my acquaintance
still expect a downward adjust¬
ment in
prices and production
quickly convert a
surplus 'into* a Fediera
deficit/
Following the price de¬
cline in February, monetary au¬
An
/
It
to
I
|
Conclusions
seems
fair
,
describe
at
moment
the
economic
cates,
;
forces
cates will be issued to finance not
as
only slightly higher than it was hanging in the balance. A mile, more than 80% of the cost, esti¬
mated at $41,137,500, or 27 dieselin fiscal 1947; and it was in the
deflationary trend became evident
latter
part of that year that a during the first quarter of the electric 6,000 h.p. passenger lo¬
moderate : business
decline
de¬ year. Recent developments set up comotives; 22 diesel-electric 6.000
veloped.
cross-currents
that have tended h.p. freight locomotives; 28 diesel;
Cross-Currents
, !
to retard this movement. Inten¬ electric 1,000 h.p. switching loco¬
motives; 34 diesel-electric 600/
Since the beginning of the year sification of the war scare would
we have seen a. certain economic
quite probably strengthen these 660 h.p. switching locomotives;
1,000 freight train box cars; and
pattern developing. An inflation¬ cross-currents.
or
,
have
set
now
The
retard
the
up
some
effects
rate
of
of
adjustment and to stimulate
is
to
When you want to
re¬
some
somewhat
of
new
more
ment
can
expect
favorable trend
for
markets
lines
the
and
have
air
forces.
some
equip¬
shown
We
have
for
every
greater
tightness in anticipation of larger
of
defense
This
spending. Retailers can
sales in the next few
months to be slightly higher than
they would have been without a
an
stencil In our mailing department
metal
firm
Cities,
arranged alphabetically by
list
is
within
and
Dealers
bank listed In "Security
and
revised
the
dally
and
States
by
Cities
firm names.
offers you the most
up-to-the-minute service available.
Our
charge
States
tax reduction.
Psychology
a
North America"
and
expect
is at
CIRCULARIZE the Investment
orders, as. more funds*are
appropriated
Metal
train cars.
Firms In the United States and Canada, Remember Us!
markets.
a
9 passenger
diffi¬
basic
cross-cur¬
these
downward
Machine tool makers
the
Nevertheless,
price trend was gradually
readjusting itself to a deflationary
path. The war scare and Con¬
gressional action on tax reduction
ary
or
SPECIAL
far has not been
greatly ; stimulated., However,
I
two
doubt that the war scare period
and
The
Monetary Factor
Federal
the
ones
The reduction of taxes and pro¬
jected increases in Federal spend¬
ing:
had
entire business structure.
drastic development in
field
changes
the
attitude.
;-:V
gain
any
entirely. '
passed
we
not suggest
more
prevents price decreases
or causes
but
,
foreign
whole
less .directly into sales. -:.;"'V-1; '
or
very
be
not
will
caution in operations.
We
willing to recognize the stim¬
ulating forces of tax reductions
and increased defense spending,
difficulties in Italy. Most political
observers believe, however, that
will
there
1
are
draft
measure,
and
quite probably pass it if there are
UMT
that
decline similar to that
gest
emergency
careful
predict
a
We are able to de¬
tect many weaknesses which sug¬
Best guess at the moment seems
to be that Congress will ready an
current
not
be
1920-21.
indefinitely.
UMT unless
pass
past
use
the first quarter of this year; that
rise in prices cannot go on
Military Training was
Congress is
to
to
the
methods of preparedness would be
much more effective.
•
.helpful to retail sales. The pub¬
lic has been badly squeezed. Even
he moderate
to higher income
foolish
Nevertheless,
passed. JBut
anxious
be
demonstration in the second quar¬
ter of 1947, and another one in
some
prospective increase in
a
to
soon
of
literally forced to do so by
foreign development. This
is more than a question of mere
politics, since many opponents of
UMT believe sincerely that other
reduction,
Congress will pass
President's
rash
it is
tax
There is no doubt that reduc¬
tion in personal income taxes will
rents.
I do not believe there is much
chance that there will be a war
been followed by sharp declines?
(3) Unit volume has begun to
measure
not
be
an
general psychology and
a sympathetic effect on other mar¬
kets, Declining farm prices also
armed
v
h o w e v e r,
be further
modity futures markets have
;// such levels had always in the past
«
■
portant effects.
dent of
no
actually
stimulat¬
a
tightening
orice decLnes.
from
This calm attitude might change
tions.
.
experts. This
gather
would
history as an analogy for what
may happen
next.
It would be
a
if Universal
of them
:/> strong confidence in the price
i
level, when prices had only been
y r- higher once or twice before in the
f.
country's entire history, and when
There is
de¬
,
continues
probably
ft
Mosts
past
few
weeks
seems
to
be
seasonal rather than apprehensive.
there
perspective, ''i';-:?//■//./•Z/ To the extent to which either
favorable,
the
would
increasing
an
of items.
We have never had a postwar
period just like the present one.
them
conversations.
the price, level of farm
commodities. If growing weather
will
of
one
so
end. If I read the situation
correctly, we are likely to experi¬
may
seem
like guesswork, ence a series of
scares, rather than
dangerous guesswork, to state
a single one. I doubt that a peak
such a conclusion. I believe, how¬
will be reached in the present
ever, that the logic of the situa¬
state of international tension be¬
tion points in that direction.
A.
complete
Is $5 00 per
S.
D.
LIST
All
addressing
completed within
We
can
a
offices
(United
only)
or
Cities $6.00 per thousand.
or
also
list
thousand.
(main
selected States
at
v
addressing
for
Canada)
N.
supply
the
list
on
24
hours.
gnmmed roU
labels
small additional charge.
It
and
Will
Russia?
our
the
United
The
tradition
States
/w|hole
is
that
attack
history
we
of
become
■
turned
its rise has been appre¬
or
number
activity and the
strengthening in prices during the
lion, which I have no doubt Con¬
gress will also pass. ///- V:/. /.//'<
and
higher. Led by
farm commodities, the wholesale
involving Russia and the United
price index rose again toward the States in the near future. T have
were
attitude
what
either
has
ciably restricted, for
news¬
fatalistic.
volume
down,
indi¬
rush of panic buy¬
ing. Even in the used car market,
the pickup in
Similarly, the increase in de¬
fense spending means more Fed¬
modernization programs.
y/vV:-'/ eral purchases and orders for
C (7) World agricultural, condU somei iMiust r4 es.
Nevertheless,
tionstfiave improved. This has al¬ these two
stimulating factors must
ready been at least partially re¬ be judged in relation to a broader
there
Unit
con¬
different
very
the stores in
fiscal year of about $3
adopted this program with a great
dealof
effectiveness.
Conse¬
quently/it is more difficult to
are
the
,
other is
au¬
its costs
higher; .although
on
One
the defense
tighten credit, hvaddition, they
urged voluntary credit restriction
on
the
banks, ,, and the
banks
money
is
developments
bound to have
activity.
to
new
the
moment,
effects
two
which I believe
receiv¬
Monetary
with
be
-casual
many
them, I would say, accept the
possibility of an early war with¬
out much
question, in contrast to
:/
the
at
what
are
are
ing effect
Cash
./'/"!//
thorities took several
obta.n
is
There
new
was steady tightening
in credit conditions.
had
of
y'
Stimulus
will
be from
international
velopments short of war.
to
de¬
declined, while
accounts
to
seem
front has lagged
question
therefore,
deteri¬
a
advanced. ;•
/■(6) There
of
../,''jiky!-.//
not
,
the capital
on
•
New
r
The
money in order
vanced
economic
seriously.
high earnings, business had
to raise extensive amounts of
,
billion,
ag¬
foreign policy has
gains. Her position,
some
ternal
,
~
an
does
have
Nevertheless, the public has not
however, is by no means con¬ acted as though it were
badly
solidated, and progress on her in¬ frightened. It has not rushed to
standards. I; This not only tends to
concentrated advertising ,camjiscourage inventory speculation
paign about: the pros p e c i pf.
and, excessive
buying,
but is
inflation and higher prices that
among the factors causing some
the public kept on
buying heavily reappraisal of
plant expansion and
.through Christmas.
v
policy
to go slow at home and
conversely.
Her aggressive
it: a
*
followed
foreign
that
amount of economic energy. When
she goes fast abroad, she is forced
subscribed."
*
You will recall that there
Russia bas
gressive
I
her, internal position
sincerely hope
is strong and
healthy. On the
embody the
contrary,
she
has only a limited
to which this
Economic Tendencies
whole
the
that
with
mean
principles
re¬
peculiar
past
two
weeks.
that the final Act will
Committee
during
this
43
culty is too much production at
loo high a price.
Domestic and
foreign demands seem to have
passed their peak. Even at their
peak, they were satisfied with
something to spare for inventory.
a
viduals, who don't know too much
about foreign developments ex¬
of the Board
I
noticed,
versations
administering it with fairness
broad
street."- In
the
could probably pick a better time
than the present. The mere fact
for
measure
I- have
situation
that, if
be-
this
in
spect
that Russia may sometime attack
the United States admit that she
choose
with
"man
the
Com¬
in" substantially
.onn.iecommenaea oy your
mittee, I
'(1450)
in our economy is determined by
the actions and (attitudes of the
,
methods
on
CHRONICLE
requii ed, fhqy will not affect the involved, in wars only on the
u. damental objectives.
<;
•greatest provocation involving di¬
"I
wish to. repeat, Mr.. Chair-I rect attack on our shipping, or on
man, that I am in favor of this our outposts.
other Governors
achieving the same objective. I
'do hope,
however, that, if in the
FINANCIAL
&
fore late Summer
Public
or
Fall.
.
Calm
4 great deal of what happens
Herbert D. Seibert & Co., Inc.
•
25 Park Place
REctor 2-9570
New
Vork 7, ft ¥.
;
44
•
•
March 25 filed
facture corn
for plant
improvements.
Co., Ltd.
Underwriter—Paine, Web-
($20 par), 1947 series.
stock
Atlantic
lateral
par)
Fisheries
Coast
Co.,
Consolidated
.
Underwriter
stock.
common
Boston,
Mass.
Offering
Buffalo.
conversion
'against
^will
—
The
bonds
—
Doolittle
Co.,
&
of the
be
are
•
;
-
i/
preferred stock, convertible prior to July
"
Underwriters — Goldman, Sachs & Co. and
Pierce, Fenner & Beane, New York, and
Piper, Jaffray & Hopwood, Minneapolis. Price and num¬
ber of shares by amendment/Proceeds—To reduce short-*
Jerm bank loans totaling $13,850,000.
Business—Holding
company for durable goods retail stores.
'
V
Inc.'
1958.
•
..-Genuine
Parts
Co., Atlanta,
Ga.
filed
150,000 shares ($5 par) common stock,
of which 50,000 are being offered by company and 100,000;;;.
by five stockholders. Underwriter—Courts & Co., At- v
March
30
amendment. Proceeds—From the $400,000 of bank indebtednessj;
will be retired and balance for working capital. Business
—Wholesale automotive parts and supplies.
/lanta,
Ga.
Price by
sale of the 50,000 shares.
Br/;/ Georgia Hardwood Lumber Co.
ditures.
(4/12-16)
69,500 shares $1 convertible cumulative
preferred stock (no par) and 10,425 shares of common
stock
($1 par).
Underwriter—Reynolds & Co. / Price
by amendment.
Proceeds — To selling stockholders—
March
(4/20)
Consolidated Natural Gas Co.
V;
Merrill Lynch,
treasury for expansion expen-"
and to reimburse
stock
/5B;B
Augusta (Ga.) Grocery Co.
Br/'"
March 22 (letter of notification) $100,000 5% serial de¬
bentures bonds and 4,500 shares of 6% ($20 par) par¬
•
:
cumulative
Co. Inc.; The First Boston Corp. , Proceeds—To redeem
bonds. Unsubscribed bonds /
273,566 shares of outstanding $5 cumulative preferred
underwriter. Proceeds —
publicly offered by
General corporate purposes.
proceeds will
Gamble-Skogmo, Inc., Minneapolis, Minn.
March 30 filed an unspecified number of shares ($50 par);
31,
Edison Co. of N. Y.,
250,000
•
$57,382,600 of 3% convertible debentures,
due 1963. Convertible at the rate of one common stock
share for each $25 of debentures.
Offering—Common
stockholders of record March 25 were to be given right
to subscribe for debentures in ratio of $5 of debentures
for each share held.
Due to failure of the New York
P. S. Commission to approve the issue, the' financing
has been postponed.
Underwriting—Unsubscribed de¬
bentures will be offered at competitive bidding.
Prob¬
able bidders: Morgan Stanley & Co.; Halsey, Stuart &
being offered to
stockholders at the rate of $1,500 of bonds for each 1,000
shares of common stock held. The stock will be reserved
■'
No-underwriting.
Rights expire
held.
1 filed
March
mortgage and col¬
168,950 shares ($1
filed $556,500 4V2% general
trust convertible bonds and
2
& Co., New York.
New common to,;
stockholders of record April 6 at rate,
share for each 12 y2 now
shares and
125,000 preferred shares
Detroit
March 22 (letter of notification) 136,268 shares ($1 par)
common
stock., Price—$1 each.
For working capital.
ment for new stores.
.ber, Jackson & Curtis, New York, and Mitchum, Tully
& Co., San Francisco. Price—$21 per share. Proceeds—
To expand facilities.
Feb.
present
new
one
preferred
company
Formsprag Co.,
•
,
April 15. Price—Preferred, par; common by amendment.,B
Proceeds—To buy machinery, trade fixtures and equip¬
,
(4/6)
75,000 shares of 5% cumulative preferred
Associated Telephone
March 15 filed
V
'
of
260,000
and
and 75,000 common shares. The company's
be used for general corporate purposes.
(4/6)
shares of 5% cumulative preferred
($50 par), and 49,431 shares of common stock ($2.50
be offered
sell
shares
common
par). Underwriter—Hemphill, Noyes
Offering—Preferred publicly April 6.
Record date expected to be about April 13
and subscription period will extend two weeks. Proceeds
—$1,000,000 for retirement of bank loans and the bal¬
shares held.
will
holders
March 16 filed 40,000
stock
■1 -A,
ISSUE
Business—Manu¬
Inc., Norfolk, Va.
Colonial Stores,
.preferred stock (no par). Underwriters—The First Bos¬
ton Corp. and Smith, Barney & Co.
Price by amend¬
ment. Offering—To be offered to common stockholders
in ratio of one preferred share for each 12 common
ance
and its sales affiliate..
products.
Partition Corp.
Ludlum Steel Corp., Pittsburgh
107,383 shares of cumulative convertible
Allegheny
PREVIOUS
SINCE
ADDITIONS
INDICATES
Registration
in
Now
Securities
Thursday, April 1, 1948
FINANCIAL CHRONICLE
&
THE COMMERCIAL
(1460)
11
filed
March 15 filed $30,000,000 of debentures, due 1968. Int.
;,
rate and price by amendment. Underwriters—To be de¬
ticipating preferred stock. Underwriter—Johnson, ]Lane,
termined through competitive bidding. Probable bidders
(Equitable Securities Corp., A. C. Allyn & Co., Inc., and
Sapec & Co., Inc., Augusta. To purchase assets from
include: White, Weld & Co. and Paine, Webber, Jackson
Clement A. Evans & Co., Inc.) / March 30 stockholders
stockholders of a predecessor corporation.
'
:
& Curtis (jointly); Dillion, Read & Co. Inc.; The First
voted
to change name
to Georgia-Pacific Hardwood
Bennett-Ireland, Inc., Norwich, N. Y.
Boston Corp.; Halsey, Stuart & Co. Inc; Morgan Stan¬
■;>Lumber CCo.
.'
,,
r
»
>
«
March 22 (letter of notification) $200,000 15-year sinking
ley & Co/ Proceeds-^-To be added to general funds for
Gulf States Utilities Co.
(4/19)
fund first mortgage bonds. Underwriter—Mohawk Val¬
purchase of additional capital stock in the company's
March 19 filed $12,000,000 first mortgage bonds, due
ley Investing Co., Inc., Utica, N. Y.
Price—Par.
Pre¬
operating subsidiaries. Expected about April 20.
;;
,
1978,
Underwriters—Names to be determined by com-*
payment of mortgage ($130,000).
Corporate purposes. ■■
•
Crader Oil Co., Oklahoma, City, Okla.
petitive bidding.
' Probable bidders: Stone & Webster
•
Broad Street Investing Corp.
!
March 22 (letter of notification) 50,000 shares ($1 par)
/ Securities
Corp.; Halsey, Stuart & Co. Inc.; Salomon B
March 22 filed 100,000 shares (par $5) ; capital stock.
capital
stock.
Price—$1
each.
For
drilling
and
develop¬
Bros. & Hutzler; Merrill Lynch, Pierce, Fenner & Beane
Underwriter—Broad Street Sales Corp. Proceeds—For^
ing oil lease. No underwriting.
B
B/'BB and White, Weld & Co. (jointly); Lehman Brothers.
investment.
' B.. ' B•''_B;/;B B - :B-;'B
Proceeds —To
finance/ construction.
Expected about
Crampton Manufacturing Co. (4/12-16)
Brockway (Pa.) Glass Co., Inc.
'';;BB' vB'B/■'
••
Feb. 5 filed $600,000 first mortgage 5y2% sinking fund ; April 19.■ ;■ ■;///''•';v'■
Feb. 26 filed 5,000 shares of - 5% cumulative preferred
•
H. & B. American Machine Co., Attleboro, Mass.
bonds, due 1966, with warrants to purchase 60,000 shares
stock (par $50) and 7,150 shares of common stock (par ■
March 24 (letter of notification) 60,000 shares (no par)
($1 par) common stock. Underwriter—P. W. Brooks &
$50). Underwriting—None. Offering—Both issues will1;
Co., Inc., New York. Proceeds—To retire secured in¬
common, stock.
Price—$5 per share.
To reduce mort*
be offered at $50 per share to residents of Brockway.
debtedness, finance inventories and supplement working
gage indebtedness.
No underwriting.'
1
k,
Proceeds—Construction and purchase of new equipment.
capital.U Expected early in April.
•
Helicopter
Engineering
ResearchCorp.,
B
'
Cameron Aero Engine Corp.
BB;';';B'B:/BB''- /B'Bv/; •
Cuddy Mountain Mining Co., Spokane, Wash. B
;Philadelphia
;• Dec. 29 (letter of notification) 101,000 shares of common
March 22 (letter of notification) 300,000 shares of com¬
; atock
March 26 (letter of notification) 150,000 shares of com-*
(par $1), of which 85,000 shares will be sold to
mon stock.
Price—25 cents each.
Underwriters—Wil¬
mon
stock (par $1) and 50,000 shares of $1 6% non^
the public; 8,500 shares will be issued to underwriters
liam Ray Bellows, Wellman Albert Clark, Robert Maur¬
cumulative preferred stock. To be issued from time to ...
as additional underwriting consideration and 7,500 shares;,;
ice Cooper, all of Spokane, and Gerry Moore & Co.,
time in small lots at prices ranging between par. ahd
will be issued to American Die & Tool Co. for invest- Seattle.
To begin mining operations at Grants Pass, Ore. B $2 per share. Operating capital.;:
'
'!
ment in return for cancelling $15,000 open account for
(
,
.
„
-
.
"
*
>
,
.
v
'
'
*
■
,
machine
*
tools. : Price—$2
per
Henry P. Rosenfeld & Co., New York.
March
stock.
cosmetic business.
No
underwriting,
;'v
v
B;;
Bancshares
named.
Underwriter—None
Offering—To
be -sold
(: banks and similar financial institutions only.
competitively. Probable
—To buy
Halsey, Stuart & Co, Inc.; The First Boston
Corp.; Blyth & Co., Inc.; Equitable Securities Corp.;
Harriman, Ripley & Co.; Glore, Forgan & Co., and W. C.
Langley & Co; (jointly). Offering—Debentures will be
offered publicly.
Stock will be offered present stock¬
holders on basis of one new share for each four held
bidders:
(letter of notification) 3,000 shares (no par)
Price—$10 each/ Offering—To be sold
.* to nine persons.
For operating expenses in the perfume
and
be offered
ing—Debentures to
24
common
March 29
i
'.^BBBz/BB1 25-year sinking fund debentures, due 1973. Underwrit¬
Carosanti, Los Angeles
Corp., St. Louis, Mo.
filed 327,105% shares ($4 par) common stock.
; Industrial
;:
funds, etc.
ating
•
Dallas (Texas) Power & Light Co. (4/5)
Underwriter—
\
To provide oper-v /Feb, 26 filed 68,250 shares of common (no par) $4,000,000
share.
cial
to
Proceeds
controlling interest in banks and similar finan^
— Banking
and loan opera?
;
>
1 ?
B
institutions.v Business
tions.
International
Asbestos
Co.,
Ltd.,
Sherbrooke,
:,.;B:;-B-B Quebec
Mining & Development Corp., Central
Jan. 30 filed 1,500,000 shares ($1 par) common stock.
City, Colo.
v
/BBBy:/;/ at $60 per share. 1 Texas Utilities Co. (parent) will
Underwriter—Paul E. Frechette, Hartford, Conn., is the
March 25 (letter of notification) 150,000 shares of class A
acquire 62,292, shares. Proceeds—Construction program.
U. S. authorized agent and principal underwriter, /Price
common
stock
($1.50 par) and 34,125 shares ($1 par
Bids—Bids for the purchase of the bonds will be received
—$1 - each. T Proceeds—To construct milling plant and
•
'Jk>
Central
common) stock.
—Carter
ment and
Price—Par for each class.
H. Corbrey
Underwriter
up
Co.,J Chicago,1': For mine develop¬
working capital.' "
BBB;/;|
Central Power & Light Co.
Nov. 21 filed 40,000 shares <$100 par) cumulative pre¬
ferred. .j Underwriter—Kidder, Peabody & Co.
Proceeds
—For
to April 5.B
•
property additions and expenses.
:
>
„
March 25 filed
Stock
Co., Detroit, Mich.
450,000 shares of capital stock ($20 par).
Names
to
Probable
determined
be
bidders
purchase equipment.
I-Odoral, Inc., Wilkinsburg, Pa.
B
notification) 200,000 shares of common
stock (par $1). Price—$1 per share. Underwriter—Ster^
ling Graham Co., Pittsburgh. Purchase of products, etc. B
March 8 (letter of
being sold by American Light & Traction Co. in
/accordance with SEC divestment order.
•
,
Detroit Edison
t
Underwriters—
:
through competitive bidding.
Spencer Traski& Co. and
Kingston Products Corp., Kokomo, Ind.
include:
March 5 (letter of notification) 14,618 shares common
($1
par).
Underwriter—Alison & Co., Detroit. Proceeds
Rutland, Vt.
' ;■ ■; •
: •Empire Chemical Corp., Seattle, Wash.
B
to selling stockholders.
;Bv
:B*':B BB;.BB
:. T
March'30 filed $1,500,000 Series E first mortgage hoods
March 24 (letter of notification) 60,000 shares of common
B •
Kist Bottling Co., Los Angeles, Calif, B B . ;
'
and an unspecified number of shares (no par)
v^lue
voting capital stock. Price—$5 each. Business costs. < No
March 22 (letter of notification) 250,000 shares ($1 par)
common stock. ' Underwriters
Names to be furnished
underwriting.
common stock.
Price—$1 each.
For new buildings and
by amendment.
Proceeds—For a construction program
Esterbrook Pen Co., Camden, N. J. B;BBB/|:;f B/B
; facilities.B;;;•/''
and repair of flood damages.
BBB
; •
iBB"B
March 17 (letter of notification) 1,500 shares of common
Kool-Aid Bottling Co., Inc. of Calif., Sheboygan#v
4
stock
Clinton Industries, Inc., Clinton, ' Iowa
(par
$100).
Price—Par.
Underwriting—None.
;?W|sconsin .
' .
..
March 26 filed $7,000,000 15-year debentures, due 1963. ;; Offering—Stockholders of record April 7 will be given
the right to subscribe for one new share for each four /March 22 filed 1,500,000 shares ($1 par) common/stock.
Underwriters
Smith, Barney & Co., New York and
Underwriter—Heronymus & Co., Sheboygan, Wis. uPro¬
shares
held.
'Rights expire May 7 and subscriptions are
Newhard, Cook & Co., St. Louis, Mo.
Proceeds—To re¬
ceeds—To open and equip bottling plants in California
pay a $1,500,000 bank loan to J. P. Morgan & Co., Incor¬
payable at First; Camden National Bank & Trust Co.
cities.
Price—$1 per share.
/BB//B-;.B:
For
porated and purchase outstanding stock: of American
working capital. •
/,
B/B. • B'
•
'Mi^A
Central Vermont Public Service Corp.,
Coffin & Burr
(jointly); The First Boston Corp.
BBbB'/
,
,
—
—
.
J
Federal
Electric
Products
Co., Newark, N. J.
Feb. 27 filed
Corporate and Public Financing
150,000 shares ($1 par) common stock. Un¬
derwriting—To be filed by amendment. Proceeds—To
repay loans made by/the company and a subsidiary
Cole
Industries, Inc.
Florida
Power
March 2 filed
ferred
stock
.
•
<
■'[,
v
Corp.
:• ~
'
:
;"■/vB ;/
4Q,000 shares ($100 par) cumulative pre¬
and'
110,000 shares ($7.50 par) common
Underwriters—Kidder, Peabody & Co. and Mer¬
Lynch, Pierce, Fenner & Beane.
Offering—Com¬
.
stock.
The
rill
FIRST BOSTON
for the
mon
Boston
>"
-
New York
.
Chicago and other cities
http://fraser.stlouisfed.org/
fe:
Federal Reserve Bank of St. Louis
&>7.
new
penditures.
CORPORATION /'•
OL /'
J
stockholders
Flotiil
Pittsburgh
"
'
will
common
be
stock.
given the right to Subscribe
Proceeds—Construction
ex¬
-
Products, Inc., Stockton, Calif.
;
-
March 6 filed 385,D00 shares of 60 cent convertible pre¬
ferred stock (par $5) and 325,000 shares of common stock
(par $1).
Underwriter — Floyd D. Cerf Co., Chicago.
Price—preferred $10; common- $6. ; Proceeds — Stock¬
mm
4''"'
I
,tos
Bos'
!> '
THF.
Number 4686
167
Volume
COMMERCIAL & FINANCIAL CHRONICLE
Stuart &
Co..Inc.; Morgan Stanley & Co.; Harris, Hall &
Co, (Inc.) and Drexel & Co. (jointly). Stock will be of¬
fered stockholders of record March 24 at $100 per share
on a one-for-three basis.
Rights expire April 26/- Amer¬
ican Telephone & Telegraph Co. owns 73.35% of out¬
standing stock.
Proceeds—To repay advances from
NEW ISSUE CALENDAR
April 5,
1948
.Bonds
Dallas Power & Light
Co.—
Michigan Consolidated Gas Co.
11:00
Upson Co.
Telegraph Co. expected to amount
$41,000,000 March 31, 1948. Bids—Bids for pur¬
the bonds will be received
at Room 2315,
195 Broadway, ■ New York, tip to 11:30 a.m.
(EST) on
April 6.
.—Preferred
Oklahoma Gas & Electric Co.——
Common
—
——
April 6, .1948
(EST).—
.Preferred
due
-Preferred
Common
—
..Bonds
Southern Counties Gas Co. of Calif..
Virginia Electric & Power Co
...
Debentures
loans
April 7,
Chesapeake & Ohio Ry.
Noon (CST)__...—
•
1948
April 19,
•
share
bonus.
as
toward
chase
1948
due
•
Debentures
•
Superior District Power Co., Ashland, Wis.
52,800 shares of 5% convertible second
-
30 filed
preferred stock, cumulative ($20 par).
common
for each
2V2
program.
stockholders
shares
J-
,
w
Offering—To be
the
rate
of
one
new
Proceeds—Construction
N. Y.
Inc.,
Inc., New York
March 24 (letter of notification) 200 shares of capital
stock (par $1). Price—$6 per share. Underwriter—Delafield & Delafield, New York. Proceeds to selling stock¬
holders.
;
•
M
ern
•
Maryland Credit Finance
March
22
t(letter
cumulative
of
preferred
Corp.,
notification)
stock
Easton,
2,900
,
'• .*
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Michigan Consolidated Gas Co. (4/5) ►
Feb. 26 filed $7,000,000 first mortgage bonds, due 1969.
Underwriters—To be determined by competitive bidding.
Probable bidders, Halsey, Stuart & Co. Inc.; Lehman
Brothers; Dillon, Read & Co. Inc.; Glore, Forgan & Co.;
(White, Weld & Co.; Harris, Hall & Co. (Inc.). Proceeds
—Construction program. Bids—Bids for the purchase of
the bonds will be received at company's office, 415 Clif¬
ford Street, Detroit, up to 11
a.m.
(EST) April 5.
,
•
Montgomery (Edwin Jones), Tucson,>Ariz.
March 22 (letter of notification) $300,000 of personal
notes, bearing 6% compound interest. To refinance cur¬
rent business and personal indebtedness.
ing.!
•
^
No underwrit¬
'
Moore-Handley Hardware Co., Birmingham, Ala.
of
one
•
''/ v
Mountain States Telep. & Teleg. Co. (4/6)
March 5 filed $25,000,000 30-year debentures, due April
1, 1978, and 191,881 shares of capital stock ($100 par).
,
Underwriting—Underwriters for bonds to be determined,
through competitive bidding. Probable bidders: Halsey,
not
to
selling
.
into
two-thirds of
ital.
No
a
share.
common
underwriting.
/ /
For
working
cap¬
■
.
Segal Lock & Hardware Co., Inc., New York
March 24 filed $2,000,000 15-year 6% convertible sink¬
ing fund debentures, due 1963. Underwriter—Floyd D.
Cerf Co., Inc.
Price by amendment. Offering—To be
offered initially to stockholders on basis of one
$100
V.
debenture for each
30
Caster
&
Truck Corp.,
Albion, Mich.
fjled 80,000 shares of
-77:;:7v ■;77 / • 7,77/;.; 777777:,7f l
/7/'7#'
Pecos Potash
stock for
Co.
•
No
a
35,374
shares
(no par)
Fla.
stock.
common
/ Underwriters—Morgan Stanley & Co. and Coggeshall &
Hicks, New York, and G. H. Walker & Co., Providence,
R. I.
Offering—Stock to be offered present holders at
the rate of one for five/ Price by amendment. Proceeds
—General corporate purposes..
) Z-,..•
/
Personal
Book
Mass.
Boston,
Shop,
•
March 24 (letter of notification) 930 shares of preferred
stock.
-
.
will
be
to
used
/ v
;;
.
pay
.
.
■
Pacific
Reno, Nev.
t
$3,500,000 first mortgage bonds, due 197$.
be determined by
competitive bid¬
ding. Probable bidders include: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc; Proceeds—Construction costs
Power
Co.,
-
Underwriters—To
and the payment of
$650,000 to National Shawmut Bank
of Boston for construction notes.
:
■
;
Silver Bell
Mines
Co., Denver
Feb. 26 filed 125,000 shares ($1 par) capital stock. Price
—$2.50 each.
Offering—To be made to present stock- *
holders.on a pro rata basis during first 10
days of sale.*
Proceeds — Exploration work,
working capital and in¬
debtedness.
/
..
•/.'•'■'
Solvay American Corp.,
New
York
(4/13-21)'
March 19 filed 200,000 shares ($100 par) cumulative
pre¬
ferred stock.
Price by amendment.
Underwriters—
Lazard Freres &
York.
Co., and Harriman Ripley & Co., New
Proceeds—To
&uy 297,897 shares of Class A stock
Wyandotte Chemicals Corp. at $42.80 each, and for
general funds.
'
u
of
^
South Carolina
ible
Telephone Co., Tampa,
filed
debentures,
/ i
Electric
>'•/
&
.•*
Gas
,
Co.
Dec. 2 filed 80,858 shares ($50 par) cumulative convert¬
underwriting.
26
subordinated
Sierra
like amount of the stock of Southern Potash
Peninsular
March
6%
March 26 filed
construction program.,;
18
Offered by three officers and
Price—$100 each.
preferred and
404,293 shares ($4.50 par) common
and 687,293 shares reserved for conversion of
preferred. Underwriter—Kidder, Peabody & Cq., New /
York. Offering—Shares initially will be offered for sub¬
scription by company's common stockholders, the pre¬
for sale,
ferred
on
basis.
a
l-for-10 basis and the
Unsubscribed
shares
will
common
be
on
a
l-for-2
offered
publicly.
Price by amendment. Proceeds—Proceeds together with
other funds will be used to purchase all of the outstand¬
ing common of South Carolina Power Co. from the
Commonwealth & Southern Corp.
directors, Bushrod H. Campbell, John C. Campbell, and
Adah F. Hall.
•
/Powers
No
underwriting.
Southern California Gas Co.
(5/4)
$15,000,000 3^4% first mortgage bonds, :
Underwriters—Names by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth &
Co.,Inc.; Harris, Hall & Co. (Inc.); Merrill Lynch, Pierce,
Fenner & Beane.
Proceeds—To reimburse treasury for
expenditures made to expand properties.
Expected ;'
around May 4/
^
,i
:
>
.
March
&
Oil
Drilling, Inc., Casper, Wyo.
March 23 (letter of notification) 200,000 shares (250 par)
common stock.
Underwriter
John G. Perry & Co.,
Denver, Colo. For a drilling program.
•
/Public
March
26
Relations,
(letter
of
cumulative
preferred stock
of
stock
common
Public
New York
Inc.,
notification)
(par $1).
/7\
of
New
shares
($10
Co.
of
6%
(par $10) and 2,900 shares
Price—$31 per unit. :Corpo¬
f
Service
^
shares
8,700
v/
-77: ■,</,.
Hampshire
/
par) common stock.
Underwriters—Kidder, Peabody & Co., and Blyth & Co.,
Inc., New York.
Offering—Offered present holders
at rate of one share for each 3x/2 shares held. New Eng¬
6
filed
199,627
land Public Service Co. will waive its
rights to subscribe
purchased by the under¬
Proceeds—Construction
program and retire short-term loans,
t.
Price by amendment.
v
Public
March
3
..
Service Co. o# New Mexico
filed
339,639
shares
common
Southern
.
Counties
Gas
Co.
of Calif.
(par $7).
4
Probable
bidders: Blyth & Co., Inc.; Halsey,
Stuart & Co. Inc.; The First Boston Corp. and Harris,
Hall & Co. (Inc.)
(jointly); W. C. Langley & Co. and /
Glore, Forgan & Co. (jointly); White, Weld & Co.
Pro¬
ceeds—To reimburse treasury for capital expenditures,
including construction costs.
Bids—Bids for purchase
of the bonds vrill be received
934—810
to
8:30
by the company at Rooi
Los Angeles, Calif., up
April 6.
South Flower Street,
a.m.
(PST)
on
(4/6)
stock
(4/6)
Feb. 26 filed $7,000,000 3^4% first mortgage bonds, due
1978.
Underwriting—To be determined by competitive
bidding.
to 141,101 shares which will be
writer.
16 filed
due 1978.
—
Feb.
.
a
Painter Mabelle Gold
Lemon & Co., Washington, D. C.
Price by amendment.,
Proceeds—Shares are being sold by Equitable Securities
(■
one
program for company and subsidiaries, South¬
California Gas Co. and Southern, Counties Gas Co.
rate purposes.
Nashville,, Tenn.; Union Securities Corp., New
Tri-Continental Corp. and Selected Industries
Business—Hardware.
* v\/
to
Securities, Inc., Toledo, Ohio
22 (letter of
notification) 30,000 shares of 5%
stock ($10 par) cumulative and convertible
•
To be made to holders of common stock at
new share
for each five held.
Proceeds—
Mar. 29 filed 350,000 shares ($1 par) common stock. Un¬
derwriters—Paul H. Davis & Co., Chicago and Johnston,
Corp.,
York;
Corp.
•
pany.
stock of record Feb. 27
share for each 10 held. Rights expire
Co., Denver
(letter of notification) 20,000 shares of common
($1 par).
Price—$5 each, and .39,055 shares ($1
par) common capital stock to be sold by William Arthur
Snyder, Denver. Mr. Snyder is offering to exchange this
|"
,
Proceeds
Boston
March 16 filed 500,000 shares of
capital
common
stock
($100 par)
;
^
Shareholders'; Trust of
Electric, San Francisco ~ *
shares ($25 par) common stock-
outstanding
—
of caiif.
•
Md.
Price at market.
off indebtedness.
Offering—To be offered at par to
March 24
•
'
and
velopment work at Palmer, Alaska.
stock to be of¬
fered to stockholders at $100 each and to the public at
$102.50. For working capital. No underwriting.
derwriting.
Gas
Mines, Inc., Seattle, Wash.
(letter of notification) $25,000 of production
notes, at $1 each, and $2,500 of stock, at one cent each.
Underwriting—Frank Joseph Speckert, Seattle. For de¬
shares of 6%
Mica Mountain Mines, Inc., Salt Lake City. Utah
March 26 (letter of notification) 1,539,780 shares of common stock.
Price—50 each.
For mining costs.
No un¬
$25,000 of debentures
stock ($100 par).
26 filed
March
»
;,/
common stock (par $1).
Underwriters—'Names to be filed by amendment. Price
—$7.
Proceeds—Proceeds together with funds from
private sale of $600,000 of 4%%. debentures and $250,000
Expansion
jpay indebtedness, and add to general corporate funds.
$100,000.
Service
Pacific
rate
Working Co., Portland, Ore.
March 26 filed 293,076 shares ($5 par) capital stock.'
Underwriter—Kidder, Peabody & Co., New York. Price
by amendment. Proceeds—To purchase 75% of the stock
of F» Richardson Co., holder of timberlands in Oregon,
.
stockholder.-Underwriting—None.
Jan.
purposes.
common
Proceeds—To finance
Offering
Wood
Business—Manufacture of plywood doors, wood pipe and
lumber.
business
Lighting Corp., San Francisco, Calif.
321,726 shares (no par) common stock.,,
Underwriter—Blyth & Co., Inc., New York. Price—$40.
>
/,/
stock (par $1). '
Underwriter—Harriman Ripley & Co., Inc. Price—Net
proceeds to the trust will.be $20 per share. Business—
A newly-formed diversified
open-end investment com¬
March
■
.,/
working capital at Danville and Kewanee, 111., stores. No
underwriting.
April 9.
:'■■■'77/7'77; /:*://7/7//'77777;
and
of
.
Products
Corp., New York
(letter of notification) common* stock
26
exceed
.
.
Food
of
at the rate of
*
M
shares
March
notification) 400 shares (par $5)
1,600 shares (par $5) class B stock.;
share.
Underwriting—None.
Purchase ^
to be sold to L. L. Skaggs, a director, and
the stock to stockholders at par. To finance the purchase
of a drug store at Marshalltown, Iowa, and for additional
holders of
stock
Longchamps,
•
731
Sardik
Inc., Brooklyn
of
and
100 shares held.
Proceeds—For re¬
payment of two notes and general corporate purposes. -/•.
are
29 filed 686,953
Underwriting—none.
(letter of notification) 327,630 shares of com¬
(par 500). Underwriter—Willis E. Burnside
'& Co., New York. Price—50 cents per share. Offering—
Holders of common stock (par $1) given right to sub¬
scribe at par for .new stock in ratio of two shares (par
50b) for each $1 par share held.
Rights expire April 12.
Pay outstanding claims, etc.', working capital.
•
Proceeds—General
Jan.
(4/13)
March 16
mon
C.
and
Pacific
Airways,
■
Co., Greenville, N. C.
Drug, Inc., Chicago
(letter of notification)
22
1967
.
f
American
Latin
held.
now
at
Osco
March
.
'• Z''"'1
./'
100,000 shares of capital stock ($5 par).
each. ,' Underwriter—First Securities Corp.,
Price—$15
Durham, N.
(letter
stock
•
15 filed
(letter of notification) 3,500 shares common
stock.
Price—$10 each.
To finance and build..small
houses.
No underwriting.
'
" ■
"
.offered
'-V///
26
A
March
11 Broad Street, New York, post¬
'v";'v
...
preferred
construction program.
Bids—Bids for the pur¬
the stock scheduled for March 30 at office of
Old North State Insurance
25
Lake
'
preferred stock,
of
poned to April 5.
..—Bonds
Wash.
underwriters/
Price—$5 per
equipment, etc.
one
Corp.; Harriman, Ripley & Co.; Lehman Brothers and
Blyth & Co., Inc. (jointly). Proceeds—To be applied
Laguna Investments, Inc., Laguna Beach, Calif.
March
(4/5)
Inc., Seattle,
Cecilia Opera Co.,
March
($100 par). Underwriters—To be determined under com¬
petitive bidding. Probable bidders: The First Boston
—..Bonds
St.
•
Co.
.
milling equip¬
No
class
stock.
March
March
York
New
25,000 shares; remaining shares are not
To pay for the purchase of stock in the
Rotary Mills,
ment.
Newelkhorn
Chase National Bank,
•
•
Underwriting—None. Liquidate
Electric
offer
March 23 (letter of
notification) 1,000,000 shares common
stock (par 10).
Price— 100 each.
For
•
preferred share with
per
will
Innes Shoe Co.
•
^
Oklahoma Gas &
—Debentures
Southern California Gas Co.—.....
Co.
program.
Feb. 20 filed 65,000 shares of cumulative
May 3, 1948
Michigan Power Co.—.
May 4,
Inc.,
(The), Fresno, Calif.
(letter of notification) 75,000 shares (no par)
stock.
Price—$4 each. Underwriter—Loewi &
underwritten.
Queen, Inc., Elkhorn, Mont.
(letter of notification) 400,000 shares of com¬
Price—50 each.
To develop a mine.
No
underwriting.
' Z' 77 '//.
1948
Consolidated Natural Gas Co
Price—$10Q
common.
mon
1948
April 20,
Sportsman,
Reliable
common
com¬
include:
March 24
Gulf States Utilities Co........—Bonds
Wisconsin
bidders
construction
a
bank loan, etc.
April 13, 1948
Latin American Airways, Inc.—„—.C— Common
Solvay American Corp.......
..Preferred
-
continue
National
common
,
£
and
par)
Crampton Manufacturing Co
Bonds
Georgia Hardwood Lumber Co....Pref. & Common
Texas Power & Light Co.
..—Bonds and Debs.
•77
be determined under
Probable
March 29 (letter of notification) 3,000 shares of $5 cumu¬
lative preferred stock (par $100) and 3,000 shares (no
.Equip. Trust Ctfs.
April 12,
:
Underwriter—To
bidding.
1948
Bangor & Aroostook RR._———Equip. Trust Ctfs.
V
•
March 25
Halsey,
Stuart & Co. Inc.; The First Boston Corp.;
Kidder, Peabody & Co. and Stone & Webster Securities Corp. (joint¬
ly): White, Weld & Co.; Lehman Brothers and Goldman
Sachs & Co. (jointly); Blyth & Co., Inc. and Harriman
Ripley & Co. (jointly).
Proceeds—To reduce short term
.—Debentures
—
(EST)—,v
a.m.
1978.
petitive
Public Service Co. of New Mexico
11:00
Room
Narragansett Electric Co., Providence, R. I.
March 30 filed $10,000,000 Series B first mortgage bonds,
Mountain States Tel. & Tel. Co.
a.m.
Co., at
1600, 70 Pine St., New York 5, N. Y., before 11 a.m.
(EST).
' •f
of
•
Associated Telephone Co.^ Ltd.—
Colonial Stores, Inc.___——
11:30
Underwriters—Names to be determined through compet¬
bidding.e Probable bidders: Blyth & Co.,
Inc.; The
First Boston Corp.; Harriman
Ripley & Co.; Glore ForgarY
& Co. Proceeds—Cities Service Co. is
selling the stock.
Bids—Cities Service Co. is inviting
sealed, written bids <
for the purchase from it of
339,639 shares of common
stock (par $7) of Public Service Co. of
New Mexico.
Such bids are to be presented to
Cities Service
to about
chase
45
•
itive
American Telephone &
——Bonds
(EST)
a.m.
(1461)
(Continued
on page
46)
' C<
46
(1462)
THE COMMERCIAL
(Continued* from page 45)
*
stock, to be reserved for conversion of preferred.
Underwriters—Equitable
Securities
Corp.,
Nashville,
Tenn., and Clement A. Evans & Co., Inc., Atlanta, Ga.
common
Proceeds—Corporate
•
Steak 'n Shake,
Upson Co.,. Lockport, N. Y. (4/5)
(letter of notification) 4,500 shares of common
stock (par $10).
Price—Market (approximately $14.50
per share). Underwriter—Hamlin & Lunt, Buffalo. Pro¬
ceeds to selling
stockholder...
f'-s
Inc., Bloomington, III.
Feb. 2 filed 40,000 shares of 50c cumulative
preferred
stock,
sold and the remainder reserved for conversion.
Co., St. Louis, Mo.
Under¬
Suburban
at 100.99 and interest.
Development Corp., Shreveport, La.
(letter of notification) 170 shares of partici¬
pating preferred stock. Price—$100 each. Working capi¬
•
Service,
Inc.,
Ontario, Calif.
March 22 filed $500,000
12-year 6% series sinking fund
debentures, due March 1, 1960, with purchase warrants;
attached for the purchase of 50 shares of common stock
($1 par).
Underwriters—Lester & Co. and Wagenseller
& Durst, Inc., Los Angeles. ' Proceeds—To
purchase
California Butane Co.
Business—Utility.
•
Sylvan Seal
Milk,
•
•
.
(4/12)
March 8 filed
$7,000,000 sinking fund debentures, due
1973, and $2,000,000 of first mortgage bonds, due 1978.
Underwriting—To be determined through competitive
construction program.
•
•
Refining Corp.,
T;'/?*
filed
19
850,000 shares ($1 par) common stock.
Underwriter—Distribution by company,
Price—$1 each'.
one new
Ultrasonic
Corp.,
Cambridge, Mass.
capital.
•
(letter of notification) 10,000 shares ($5 par)
stock, Price—$20 each. For general working
No underwriting.
-
Rayon Corp;, New York City
9,950 shares (no par) common stock.
Price—$1,000 each. Each share is to be accompanied by
a "production warrant"
permitting the holder to buy a
Toward Easing
22
American
enable
assistance
those
in
order
to
European countries
with
an intra-European
payments
deficit to pay dollars to the na¬
tions with an intra-European pay¬
ments
r
surplus. In this way, the
latter group would be able to earn
dollars needed for purchases in
the Western Hemisphere.
However, the National
Council
ory
the U.
not
S.
favor
for
pensation
implement the
Americans
pro¬
posed
vised
any
Congress
Marshall
to defer until
consideration
a
of
recom¬
Plan
ad¬
later date
loans
for
monetary stabilization.
The/ European
nations,
then,
put on notice to rely first
their own resources in at¬
were
upon
tempting to relax intra-European
to
exchange
them
all
are
so
kinds
trade
restrictions
refuse,
even
that
to
fill the needs of
culiar situations.
»
may
Agreements met first
and
•* *■
subsequently
1 Committee
•
in
in
London
Paris.
of
It
European
Economic
General Report Appendix
Report of Financial Experts, Chapter
II: Inter-European Payments
Agreements.
Co-operation,
E:
most
consider
..
some
pe¬
..
those
economic
conditions
conditions
as
and
long
as
prevail.
They
will not be discarded
merely as a
result of resolutions adopted
by
international conferences organ¬
ized
under
the
auspices
United Nations.
Thus
American
of
the
agreements,
abandonment
standard
and
moratorium
the
of
and
increasing authorized
,
Works
1.
♦
gold
Hoover
debt
threatened
weaker
loss
of
tinue
i
business
assurance
of
some
countries
vital
with
imports.
relations
to
con¬
without
of
payment in freely
exchangeable funds rather than in
inconvertible" currency of coun¬
of gold and hard
curren-
cies.
Those
countries
then
proposed
to apply the proceeds of their
ports
as
porters.
security
Foreign
exr
to foreign ex¬
buyers of their
products would not pay in the ac¬
customed way of settling direct
whenever the buyer in the other
country would have deposited an
appropriate sum. in inconvertible
currency
bank.
no
As
actual
one
with
his
own
result; there would be
transfer of funds from
currencies only.
~
Pacific Finance
Corp.. of Calif. *
The stockholders on March
16 authorized
the capital stock
by the creation of
time
'
,
!
new
'*'
*
avoid
use
payments,
efforts
^
able
free
were
at
a
Central
with
under
frozen
sound
a
pressure
claims
quire
ties
of
their
goods
consid-
was
banks
of
to
,
;
,
•
1
M
;"
strict
limitations
to be imposed upon the size
outstanding bilateral clearing
balances; overdrafts had '• to be
of
gold
,
or
compensations
individual
m
subject
those
unlimited
goods
to
quantiincrease.
~
.
importers
to
German
Government
the
owners
suffered
;
/
"
large-scale buyers have been hard :
by the /reluctance of foreign '
producers of foodstuffs and raw
/
materials to accept payment in im- V
-
convertible sterling.
Finally, ; bilateralism
come
an
important
nomic
planning
Those
governments
-
has : be-
tool
and
of
eco-
regulations.
that
wish
to
continue wartime regulations and
and 5
resfrictions
in
,
// f
heavy 1
be-
,
negotiations
the
losses.! These sad
experiences are " '
still very much alive. The British : '*V;
who
reiied on their power1 of :
|*
hard currency,
addition, permission had to be
rates
;
ac¬
hit
had
for
vitually
to
willing to sell for export...In
end, foreign mark accounts
increased by leaps and bounds
and
prepay
:
in
4"
*
the
currency
|
Eventually,
heavy !
Nazis .were„eager
of
;f
.
war-reserve stocks.
They
mark balances available ';
for the purchase of those German r
exporters
;
suffered
and
' paid in
working: capital was increasingly immobilized. They had
to give way in
spite of the obviously inflationary effects of such
po.licy.
foodstuffs
.
acquire
whose
a
of
materials
The
able to avoid
would
market
discount.-
countries
-
mechanism with its (their
which they
the
on
policy-.
losses; and wore willing to sell
almost ■; at any price.. to
acquire
exchange for the imports of essential finished goods.
artificial exchange rates and
pay
direct to the seller in his own cur¬
rency
.
turned the emerge
into
a
powerful*
producers
raw
deposited by importers.
were
>
During the depression of the 'thirj
ties
country exporters had to wait for
long time until sufficient funds
clearing
;
Schacht's*;
of / commercial
weapon
to-
of the
For these often
V
.
'
a
the Nazi and Dr.
scheme
ency
a
the
was
ingenuity who
,
been
as
.
Barge balances of over-valued
currencies tended to pile up with
one central bank while in the other
had
official
Weapon of
Economic Policy
/ '
,
It
clearing in spite
of threatening- stiff penalties.
i;
of
■v.;
payments, need to provide for
non-trade
regardless
Bilateralism
on,! a multiplicity of
troubles
developed. Among the
major sources were artificial' ex¬
change rates, differences in terms
of
case
unrealistic quotations.
went
tween
,
J
increase in.
an
300,000 shares of
each
ising in theory; at any rate it led
resumption of trade though on
restricted ;scale.
However, as
-J;
exporters with^^flexible
exchange
would deal in their domestic
/
«
Corp.
*
•
to
granted
country to the other; all part¬
above).
a
In
a
-
instructed to dispose of stock
American
Bemberg
(see
preferred stock (par $25).
settled
central
Alien Property Custodian
Co.;
*
■m
Brit¬
the
Foreign suppliers refused
ners
business!
on
to 500,000 shares,
North American Rayon- Corp.
The scheme looked very prom¬
/and
However, bilateraiism has de¬ with the seller but would deposit
veloped into a powerful force. It the purchase price with their do¬
has created strong vested interests mestic central
bank.
Funds thus
both
ideological and
material. accumulated
would -be
used
to
Some of its principal features are satisfy claims of
exporters who
bound to stay for quite a while. would'be
paid by the central bank
They are the outgrowth of spe>- in their o\yn convertible currency
they will be continued
Payments
methods
■
plans.
on
op¬
and
possibility that those schemes
cific
Committee
ain's
reserves
strongly
of
payments
restrictions
and
to
shelve temporarily their broader
A
the
tries which had lost most of their
Arrangements
the
the
cooperation rather than out¬
Signifcance of Bilateral
of
mending
Plan
right American assistance.
This
gives it an importance far beyond
group
to
standstill'
man
complete
Marshall
vote
30'stockholders voted to increase
by 500,000 the
lit
^held by government
-.W.
and
emergency situation. The
financial crisis of the
early thir¬
ties which culminated in the
Ger¬
the financial field
through Euro¬
pean
Co.
A.ti
an
Europe's
posals, and thus the President in
to
was
Advis¬
ambitious
attention
i&
his
message
which
Com¬
signed on
the Benelux countries. This
agree¬
ment is the first positive
step to
International
Financial
Pay¬
those
Agreement
an
Monetary
18, 1947 by France, Italy and
on
Administration, did
&
1
financial leaders with:interests in
foreign countries will have to give
of
Multilateral
Nov.
4m
practices of bilateralism—whether
they like them or not.
Bilateralism first developed out
draft of
a
filed
Hemphill, Noyes &
The First Boston
Corp.; Dillon, Read & Co. Inc.
the limited scope of its
provisions.
Monetary
and
ments, the policy-making
of
prepared
Mathieson Alkali
_
(jointly); Drexel
European
Exploration Corp.
The holders voted also to change the name of the comPany to Mathieson Chemical Co. There are no current •
Pla.ns to issue any additional stock. Traditional under-r;
writer: Hayden, Stone & Co.
£&*
ex-
$12
1«1
(Continued from page 15)
Benelux countries
(Belgium,
Netherlands, Luxemburg).! This
scheme provided for considerable
Rights will
"
:
,
1 Q7ft
filed
the
subscript
in ratio of /
24
Oil
*
number of shares of authorized common stock and to reduce preferred shares to the number now outstanding."
(par $10).
for
Michigan Power Co. (5/3)
$14,000,000 first mortgage" bonds, due!
TTnllAf«icr
1978.
Underwriters—Names to Lm
be determined
through
competitive bidding.
Probable bidders; Halsey, Stuart
& Co.
Inc.; Lehman Brothers and Goldman, Sachs & Co.
March
Maracaibo
•
Wisconsin
United
March" 29
Prire
24
capital stock from 400,000
companies.
March 22
common
of record March
share for each eight shares
held.
Telephone Co.
Ma«Y 3 stockholders wilt
March
Offering—Offered
■"
Bell
competitive bidding:
Probable bidders:
Morgan Stanley & Co.; Halsey, Stuart & Co. Inc.
per share.
Proceeds—Plant
additions and purchase of securities
and assets of other
Proceeds—To build and equip
machinery.
•
v
-
32,937 shares of common stock
nirp Anrii"VfT
Illinois
series "B" and 389,995
shares of capital stock (par $100):
Stock will be offered to
stockholders of record June 2 in-,
ratio of one new share for each five
held. Bonds will be !
sold through
Fund, Inc.
Underwriters—None.
tion by stockholders
f
directors approved
financing program con- 3
templating issuance of $60,000,000 first mortgage
bonds, 7
\f
25 filed
Cj'/
'(jointly).-
•
March
Abilene, Texas
investment.
Feb.
South
Co.
22 filed' 50,000 shares of
capital stock (par $1).
Underwriter—Broad Street Sales Corp. 'Proceeds—For
,
of
(jointly); Mor-1 !
Stanley & Co.; White, Weld & Co. and
Shields, &
•
Wilson-Jones Co.
Expected about April 12.
sale
Consumers- Power
gan
March
Milwaukee, Wis.
March
Whitehall
:
!"!• T\.
groups being formed to bid on some
$20,000,000 preferred stock. Probable bidders:
Harriman
Ripley & Co. and"The First Boston Corp.
Business—Utility.
West Texas Utilities
Corp.,
the
March 25 rumored
March 24 (letter of
notification) 1,983 shares $6 cumula¬
tive preferred stock (m
par). Price—$113. For general
funds.
No underwriting.
bidding. Probable bidders: The First Boston Corp., Hal-;
sey, Stuart & Co. Inc., Blyth & Co., Inc., Smith,
Barney *:
& Co. and Kidder, Peabody & Co.
(jointly); Hemphill,
Noyes & Co. and Drexel & Co. (jointly); W. C. Langley
& Co., and Glore, Forgan & Co/
(jointly); White, Weld
& Co.; Harriman Ripley & Co., and F. S.
Moseley & Co.
(jointly); Lehman Brothers. Proceeds—For construction
f
'
»
be
!;/•
\
Co., Abilene, Texas
Corp.; Harriman Ripley & Co., and Blyth &
Co.,. Inc.!
(jointly); Halsey, Stuart & Co. Inc. (bonds only); Leh¬
man Brothers; W. C.
Langley & Co.; Kidder, Peabody &
Co.; Stone & Webster Securities Corp; Proceeds—For a
,
OiJ
Utilities
v -V
April 7] ?
$5,500,000 equipment trust certificates,
dated April 15, 1948 and due
annually April 15, j
1949-1958.
Probable bidders include:
Halsey, Stuart & i
Co. Inc.; The First Boston
Corp.; Salomon Bros. & Hutz-1
;
lierf Hhrriman Ripley & Co., Inc. and Lehman Bros.
]
(jointly); Blyth & Co., Inc.; Harris, Hall & Co. (Inc.).;
for
to
Lines, Inc., San Francisco,. Calif.
West Texas
'
Chesapeake & Ohio Ry. (4/7); •
Company will receive bids up to noon (CST)
March 29 filed $5,000,000 Series B first
mortgage bonds,"
due 1978.
Underwriter—To be determined by
competi-i
tive bidding.
Probable bidders include The First Boston
Inc., Philadelphia
;;?S
notification) 2,000 shares of common !
Prices—$8 per share.
Underwriter—
Trans-Marine
Western Air
RR.
from Oct. 15, 1948, to
April 15, 1958.
;
24
Bangor & Aroostook
(4/12)
|
company has issued invitations for. bids to be
re-\
ceived April 12 for the purchase of
$700,000 equipment j
trust certificates. The
certificates will be dated April 15,:
1948, and are to mature in 20 semi-annual instalments!
;
New York
-
the/
stock
(no par).
Penington, Colket & Co., Philadelphia. Proceeds to sell¬
ing stockholders.
^
:
purposes.
.
•
The
March 24 (letter of
notification) 12,500 shares of capital
stock.
To be sold by William A. Coulter at
about $8.;
No underwriting. '
<
March 24 (letter of
Texas Power & Light Co.
Oil Corp.,
and North American Rayon
Corp.f
Kuhn, Loeb & Co.; Lehman Brothers,
\
Glore,"Forgan & Co. (jointly).
J
and
(letter of notification) 10,000 shares of com¬
mon stock (par $1).
Prices—$1,50 per share: Underwrit¬
ing—None. Pay expense of incorporation and to
acquire
interest in oil properties in Arkansas.
,://•
•
Gas
Verla
March
No under¬
writing.
ican Bemberg Corp.
,
March 25
of
Probable bidders:
Rights expire April 5. Price—Par.
Proceeds—For construction
expenditures, etc;. Issue of
$10,000,000 3% 1st and ref. bonds, series F, due 1978,
offered March 17 by
White, Weld & Co and associates
preferred stock and $2.50 for the common. This stock
being offered by stockholders who are members of
tal for construction and real estate business.
Office
Bemberg Corp.
>
-T—'
Attorney General TOm C. Clark instructed
the?
Alien Property to undertake
immediately all!
necessary steps for expeditious sale of
controlling stock
interest held by the U. S. Government in
both the Amer¬
for each 25 shares held.
is
Suburban
/
American
March 25
holders of record March 15 at rate of
$100 of debentures;
Price—$8 for the
the Belt family.
•
Expected!
Prospective Offerings
•
Virginia Electric & Power Co. (4/6)
Feb. 17 filed $11,753,800 convertible debentures due
1963.;
Underwriter—Stone & Webster Securities
Corp;, Boston.!
Offering—Offered for subscription by common stock-;
convertible
($1
par)
and
160,000
shares (50c par) common stock, of which 40,000 will be
&
May 3.
f
•
March 26
maceutical division and for general corporate purposes.
writer—White
and'i
Marshall & Ilsley Bank
$200,000 in bank loans.
abc-ut
Sheetwood
.
(letter of notincation)
convertible
participating
redeem-
$12,500,GOO of 33A% of first mortgage bonds at
102V4%
the Central HanOver Bank & Trust Co.
and to repay
March 17
30,000 shares 5% cumu¬
preferred stock, ($10 par).
Price—
$10 each.
Underwriters—White, Noble & Co., Detroit,
and Clair S. Hall & Co., Cincinnati. To operate phar¬
lative
States
together with
$1,000,000 from bank'
loans and $1,GOO,000 from the sale of
common stock to
Wisconsin Electric Power Co., will be
used to
common
Sperti Foods, Inc., Hoboken, N. i.
Feb. 20
United
Thursday, April 1, 1948
ceeds—Proceeds
Co.f Seattle, Wash..
(letter of notification) 300,000 shares ($1 par)
capital stock.
Price—par.
For industrial and
chemical research work to improve
manufacturing.
^
and
purposes
FINANCIAL- CHRONICLE
proportionate share of the company's output.
Under¬
writing—None;' Proceeds—To provide, capital' for the
purchase and operation of a plant with- an annual pro¬
ductive capacity of 4,000,000 pounds of viscose filament
rayon and 85000,000 pounds of viscose stafple fiber.
Busi¬
ness—Rayon manufacturing.
Southern' States Iron Roofing Co., Savannah, 6a.
March 23 filed 40,000 shares: of 5% cumulative convert¬
ible preferred stock ($25 par) and< 80,000 shares ($1 par)
Price by amendment.
debt
payment.
&
as a matter
ofjpollti*
cal pnciple have- found that bi~
lateralism
schemes
fits
of
well-
into
their
controlled" economy
)
,
Volume 167"
and
Number 4686
THE COMMERCIAL
teen
they are most reluctant to
such a useful and power¬
give
ful weapon.
These trends
in
ous
the
countries
policies
of individual
but
Conference
Employment
ments
Trade
on
and
favoring bilateralism
able to achieve their aims
The
were
of
nations
of
zones
be invited to those
well. The govern¬
as
sixteen
Germany.
The Paris agreement provides for
monthly
technical
meetings
of
delegates from the member coun¬
tries; other interested nations*may
they have
been
dominating discussions at the Ha¬
vana
the
of
three Western
not only obvi¬
are
out
participating in the European Re¬
covery Program as well as by the
up
Bank
for
Settlements
se¬
meetings.
'
International
acting
central
as
curing continuation of those poli¬
cies over strenuous opposition
by
agent will restrict itself to policy¬
making functions. It will analyze
the
the data and submit the proposals
for compensations. But all clerical
United
which
was
States
to promote
eager
peal
of
and
expansion
delegation
re¬
work involved in
CHRONICLE
at this, time,
this is a long-range
proposition and it is important to
have a working organization
available at any moment to step
in whenever the situation appears
to be favorable.
responsible quarters of its pecul¬
iar position and of the
special
services it may be qualified to
render in connection with the tre¬
multilateral
mendous job of European recon¬
struction^ This is in striking con¬
trast
Undoubtedly, trade restrictions
to the central banks of the respec¬
tive countries.
This will keep ex¬
restrictions
of
will
continue
cies
long
as
remain
as
inconvertible
at
penses
curren¬
and
a
utilized
for
needed
the
purchase
of
British
Position
and
short-run chances for
abolishing bilateralism
are slight
indeed; the only way to progress
points toward agreements to ex¬
tend
an
bilateralism
ever
eventual
Then
gradually
countries
full
balances
to
only
among a much
avoiding the
of gold
or
dol¬
most
international
upon
Mechanism of
out¬
Summer's
de¬
under
were
importance
of
the
multilateral compensation scheme
in the vast enterprise to bring
about
economic
unification
of
to
and they
system of
partners
to
resort
a
decisions
significant achievement.
der
But
un¬
conditions,
initial
have psychological im¬
portance far beyond their intrin¬
present
steps
sic
may
real
value.
The
great work
will have to start from a number
of
apparently
small endeavors.
There will be setbacks and diffi¬
culties.
But
eventually the hum¬
beginnings
may
into
merge
powerful stream and
may
a
lead to
2 See
of
the
the editorial in the Feb.
New
York
"Comebacks."
"Times":
-
purposes, has in¬
vited bankers to try it again next
Monday.
Bits
and
While the
Pieces
device
27
Two
issue
Notable
ri\
been
behaving satisfactorily, by
and large, it has not been a case
of
merely
opening subscription
books and
closing them in all
cases.
Dealers
report
recent
still
are
there
awareness
of
the
bulk
of
25-year
Likewise
in
the
Penn Power Co.'s
ferred
stock.
satisfactory,
bonds and
new
countered
both
which counts among its'members
almost all nations of Europe both
in the West and in the East.
ously, the predominant position of
titude
different
to
obligations
make
tive
adherence
to
make
field
with
unwilling
in
tained.
the
The.
five
/
On the
other
is
members
The
automatic
the
provision
For it will put at
of
never
anyone
respective partners. Now the staff
to
analyze
data
and
use
appropriate
and
position
evaluate
them
as
a
basis for
suggestions
leading
amendments,
improvements
and possible expansion of the ma¬
chinery.
/
number
of
meetings
on
the
technical level have been held at
the Bank's headquarters. Informa¬
tion has been submitted
by
been
Few bal¬
reported which
were
be suitable for compen¬
Some countries are cred¬
debtor under various condi¬
'
.
four-j
feels
wholehearted
that
it
facing a bit of a chore in the
task of marketing the issue judg¬
ing from reports in dealer circles.
has
the
cooperation of
the
participating in the Euro¬
Recovery Program including
those
not
position
to
indicate
an
that like Switzerland
have
joined officially but
important trade partners.
yet
stocks
may
ing
Europe,
its
staff
find possibilities for improv¬
payment
countries
Plan
over
arrangements
outside
the
with
Marshall
area as well, in the interest
expanding trade on the Euro¬
pean
continent.
Although
the
chances do not seem to be good
of
\
MORRELL
JOHN
en¬
A
for
demand
unknown
of
the
books
on
here.
case
the
terest
in
slated
for
be
the
The
of record
April 10,1948,
the books of the
on
pretty much of
NATIONAL DISTILLERS
PRODUCTS
paid
CORPORATION
a
here,
like
share,
The
Board
COLUMBIA
&
504 per
/
payable
May
on
•;'
March
1948
23,
will not close.
on
::rV:DALE PARKER
Secretary
ELEVATOR
America
Common Dividend No. 162
the
v\;
■■'/•/■'••Ail
420
Lexington Avenue, New York 17
Notice
Dividend
At
a
today,
a
price
of
on
the
record
at. 3:00
20,
of
stock
common
payable April
Corporation,
1948,
o'clock
to
old
B.
Dated March
29,
thr
p.m.,
Apri!
A
basis
salary
will
over-the-
and
be
liberal
offered
to
experienced
man
with
desirable
Complete facilities, statis¬
tical
departments,v etc.
Box K-41,
Financial
Chronicle, 25 Park Place,
contacts.
>;;-v
SITUATION WANTED
O.
BRAND,
Research
record
on
at
payable
stockholders
to
the close of busi¬
April 3, 1948.
Checks will be mailed.
C. A. Sanford, Treasurer
New
York, March 24,1948.
Secretary.
DIVIDEND
per
amounting to
$1.75 per share, on account of the
current quarterly dividend period
ending April 30, 1948, has been
declared payable April 15, 1948
on the outstanding preferred stock
of the Company to holders of pre¬
today the fol¬
share for the second
quarter of
1948 upon the $5
Preferred Stock, payable June
15, 1948 to stockholders of
record
at
—
Economist
manager
of large Canadian
investment
firm, age 36, seeking wider
opportunities. Twelve years experience in
security analysis, business surveys, econ¬
omic analysis, and management. Formerly
•
resident in United States.
Box
J 318, The
Commercial & Financial Chronicle, 25 Park
Place, New York 8, N. Y.
-
A dividend of 1 %%,
lowing dividends:
$1.25
^YMIymm
/CommntJNC.
NOTICE
the close of business
May 14, 1948.
ferred stock of record at the close
$1.00
share upon the
Common Stock, payable June
15, 1948 to stockholders of
of business
record
been
per
at
The
on
April 5, 1948.
A dividend of
the close of business
May 14, 1948.
Analyst
declared,
1948.
gootAeu
has declared
established
an
■:
been
ness
share en
value Common Stock
April 29, 1948,
stock¬
Checks' will be mailed.
1948.
WANTED
TRADER
N. Y. 8.
par
dividend of twenty-five cents per shave
a
declared
was
helc'
no
has
of
of the Board of Directors
meeting
The Board of Directors
commission
COMPANY
A dividend of 50c per
J
HELP
firm.
C
1948, to holders of
April 20, 1948.
15,
nu¬
participants
the conviction
that they could not bid
counter
Treasurer
March 25, 1948.
their
withdrawing
by
1
-
Vanadium Corporation
about when
found
May 1,
OTIS
12,
stock
on
April 9,1948. The transfer books
day
an
which had been formed
payable
1948, to stockholders of record on
Common Stock
No. 53, 15tf per share
■f
holders
bid for the
share on the outstanding
Common Stock,
ELECTRIC
record at close of business
Tuesday.
came
of Directors, has de¬
quarterly dividend of
a
THOS. A. CLARK
S
.
which had been scheduled for last
Wanted
shown
C«or(i A. Morrill, Vico Pras. I Trias.
Ottumwa, Iowa.
same
reoffering
as
a
of
as
Company.
stock for
bidders
$21.50
of
projected sale having de¬
cided to postpone the offering of
65,000 shares of new preferred
to
share
capital stock ftf
paid April. 30th, 1948, to stockhold¬
ers
following regular quarterly dividend:
the
the latest of prospective issuers to
merous
One-Half
John Morrell &Co. will
of the 100,-
new-preferred
quantity
This action
and
Cents (10.375) per
new
common
successful
Oklahoma Gas & Electric Co. is
groups
CO.
dividend of Thirty-
Seven
on
potential is¬
suers of that class of security are
becoming more and more aware.
forego
&
DIVIDEND NO. 75
•
held true in the
Still Snagged 7
for
still
of $5,000,000
bonds, also of
v
////
market
is
underwrite
DIVIDEND NOTICES
nothing to
was
ing place, of central bank leaders
all
30-year maturity.
a
are
Since the Bank is still the meet¬
from
first mortgage
Co.';
first
purchased
from the company as 3J/8% at a
price of 100.5311 and priced for
reoffering later, subject to SEC
clearance,
at 101 to yield the
buyer 3.07%.
;
/ "out-the-window"
Preferred
The
in
are
what is going
see
deal here.
'
nations
pean
the
on
stock
common
$4,500,000
of
mortgage bonds were
be
unavailable up to now.
tlements
took
The Board of Directors has declared this
no reason
The "Bank for International Set¬
those
to
A
to
i
beyond the officials Of the
a
were
were
the
been made available to
of the B.I.S. will be in
not
discouragement.
ing effects may be expected over
a period of time only
Once par¬
ticipating countries have made
appropriate adjustments of their
trade - policies
which take
into
consideration the possibilities of
multilateral compensation which
the disposal of an impartial and
experienced organization a wealth
of information which up to now
has
have
for
More far-reach¬
This is probably the
most, important
to be expected,
tions,
i
However, there is
well
as
the
monthly
arising / under
those
agreements.
ances
found
and
agree¬
Paris covenant.
results
com¬
sale
the
for
tered
re¬
Power
The
who
acquired
Ohip
Power
Co.'s $40,000,000
of new
first mortgage, 30-year bonds, at
competitive bidding appeared to
has
that each partner is both creditor
no
agent with information
regarding terms and functioning
as
was
■
everywhere, others are debt¬
ors
throughout. Sound function¬
ing of the scheme presupposes
,
balances
B.I.S,
the
itors
nish the
ments
initial
sation.
of
occasional
bilateral
and
particularly significant.
However, all members will fur¬
several
year
pensations. As
agent's suggestions; they merely
to give them due considera¬
tion.
/
-
their
became
agreement
to
Narragansett Electric Co. plans
offer $10,000,000 of new first
mortgage 30-year bonds, and has
filed covering registration, while
West Texas Utilities Co. has regis¬
CORPORATION
report that there
made the first proposals for
agree
of
the compensation
operative at the beginning of the
/<,/'.
.
Paris
current
obligation of
compliance with the
assume
to
Agreement
main¬
signatories
hand,
trade lends par¬
First Results of the Compensation
to
Paris agreement are the first
permanent members.
regard
the
policy. Perma¬
approval
Obvi¬
agreed
clared
Bankers
one
to
DIVIDEND NOTICES
At any rate those who
However, this is restricted to pro¬
posals resulting in a reduction of
/bilateral balances, for the time
being; in all other cases the right
individual
•
scheme.
nent members agree to
carry out
the agent's proposals for
compens°t.ion without, individual scrutiny.
of
months.
attrac¬
concession
of economic
recent
ticular significance to her policies
designed
more
countries
advance
are
in
Britain in world
Two classes of membership with
;
co-operative at¬
given
unsubscribed balance.
any
con¬
has taken
be
the addi¬
up
held, with bankers
now
issues, according to market
reconciled
agent" the Bank for International
Settlements in Basle, Switzerland
a more
been
still
observers.
result/Britain
a
have
there
brisk
a
difficulty with the
vertibility. I As
right to take
having
mem¬
practice of "administrative"
under¬
"central
as
4.20% pre¬
will
Shareholders
the
addi¬
of
stock.
tional shares at the rate of
new
California-Oregon
GAS
been
up.
West
shares
321.726
California-Oregon Power
/
has
of
case
Underwriters who
tion agreement can be
by appointing
been
smatter¬
a
Sales
ber ot the multilateral compensa¬
attitude
have
new
but
t
countries upon admittance by the
"charter members.'* This "open
scored
of
common
mains the task of cleaning up an
Unsold balance.
been increasing
of the fact that the ob¬
without much
&
of
ing of this issue to be taken
ligations of
door"
far
Gas
$45,000,000
debentures
How¬
"occasional"
by
Columbia
placed there is still
has
an
portions
offerings
While
Corp.'s
agreement
provides /for
participation
of
all
European
;:/,:;The;
that
new
around.
Electric
which
some
dollars.
scarce
block
tional
the company $19.91 a share. In¬
one more
Britain
Three latest utilities to go into
registration with SEC for new is¬
sues are topped by Pacific Light¬
ing Corp. which is processing a
for five
of several
/
SEC
,
afraid that the Paris
milk
to
Around
issue market has
new
ready
investors.
New Filings with
expansion
000 shares of
were
funds
needing
company,
said to indicate
was
47
Pre-sale inquiry was reported
such as to assure quick closing
believe to be unattainable.
'
ever,
for
as a whole or at least in
The Paris agreement, at this
time, is a symbol rather than any
•
all
sale to
The
part.
convertibility
concentrated
wise
utility.
Europe
results which more cautious souls
trade
agreement might be just
Compensation Scheme
the
overem¬
foreign
They
Paris
phasize
to
reason
no
ble
land.
trade/
the
last
authorities
additional
The
direct
a
exclusively at the Bank of Eng¬
avoiding; its
restrictive fea¬
damaging
tures
was
There is
t
the impression that they had been
treated unfairly by some of their
of
means
much dependent. That surpris¬
which
in.
bilateralism which is the only
practical
which Britain is
on
"administrative"
compensa^
Its main purpose
is to work toward that expansion
of
was
intended to facilitate inter¬
was
decided
multilateral
comes
Britain
originally during
preliminary discussions of the
British
but
It is here where the Paris agree¬
tion
Germany.
French
bacle of "automatic" sterling con¬
lars.
ment for
the
vertibility.
not
larger group, thus
use
of
ing attitude
growth from
existing arrangements have
be compensated
between two partners
and
reluctant
so
which
may
to¬
Scandina¬
(Denmark, Norway
national trade
to be settled in gold or hard cur¬
rency
members
three
Sweden)
zone
ly
multilateralism.
overdraft
under
over
steps
as
as one
Paris agreement although it clear¬
increasing number of in¬
dividual
the
most
the
joined
"occasional"
with
vian countries
goods.
Thus the
the
gether
ago,
Woods Aereemen* odmmistered
Great Britain-has
of
atmosphere a few
when
the
Bretton
death sentence without "due proc¬
ess of law."
The
country tries desperately to
accumulating foreign ex¬
change balances which cannot be
years
the
minimum.
every
avoid
to
(1463)
that would be acceptable to the
One of the incidental effects of
the Paris agreement has been to
enhance greatly the standing of
the B.I.S. in this country.
There
has been increasing realization in
carrying out the
complex transactions will be left
quantitative
trade.
;
& .FINANCIAL
1948,
declared
on
40tf
per
,
the outstanding common
stock of the Company,
Goodyear Tire & Rubber Co.
share has
payable April 15,
of the par
value of $ 1.00 per
By W. D. Shilts, Secretary
of
Akron, Ohio, March 29, 1948
common
close
The
Greatest
Name
business
1948.
on
1948
■
,
April.. 5> 1
.
MsrchU.
'•
in Rubber
of
share, to holders
stock of record at the
H.A.WAYr-»
48
THE COMMERCIAL
(1464)
FINANCIAL
&
CHRONICLE
Thursday, April 1, 1948
the
BUSINESS BUZZ
report
assistants
"liberal"
on.
•
•
Tobey
crats
the
Behind-the-Scene Interpretations
Despite all
the
outlook
This
it
may
two
or
before
is
there
millions
and
nation's
allies
ropean
impor¬
too
belief—incident to
the
-
militarily
promise
program
concrete
chiefs
was
chiefs,
with
Forrestal
The
dud.
a
pro¬
defense
Secretary
Defense
presiding,
into
went
hasty labor and belatedly gave
birth to a specific program to
implement the President's
It
sage.
far from the
was
tional thing it
was
*
To
mes¬
sensa¬
heralded^ to
£
*
stage
a
S.
would
If
this
is
the
few
U.
if they
U.
have
openly,
S.
their
in
able
would
support
atom
■
;
any
into
is
It may
set
ment
more
a
.
All
in
all
there
is
,
This
would
not have
may
the
Air
could
is
Force
lead to
"war
a
a
and
except
aircraft companies,
material
bottlenecks.
for
if
five
or
of
or .some
years,'
four
would
five
or
be
few
a
if
it
the
UMT
equipped
should
the
the
basically
armed
develop
serv¬
in¬
some
—
this interpretation
If
tegic plans is correct
it
from
to
recruits
definite period of years hence.
or
amount
years
From
years.
trained
for building a new, modern air
force — the long range force
which
of
ices would further train specialists
to operate the Buck Rogers war—
the
shortages
the
So
-
fly
implies
not
that
actually
the
fear
of stra¬
given,
as
U.
S.
that
does
from the American continent to
Moscow and back
is piddling.
either
Hence there is
no
need at pres¬
home-made
the
Congress
and
the
future.
near
ent for reserving any floor spacer
that
in Washington hotels for "legis¬
lative engineers" to help guide
the
one
time
or
Iron Curtain
military
18
of
antici¬
Italy
elections
It scouts the
actually
in
with
or
program
as
indication
an
assumes
will have
*
It
pare.
several
official^
top
chance
to
get
When¬
feel
more
unmistakable
the
economic
when
Ru-sia
they
dence
of
ward march.
evidences
imperialism of the
from
only
a
preparedness program adopted by
Congress, it is anticipated that
they will request more. Any fur¬
;
.
■
'
■,«
'
year?
*
So
this
is
with
of
aid
with
associated
&
Co.,
813
He
was
Street.
Russell,
Balfour
and
Hoppe,
Stephen¬
The
Byllesby
Financial
Chronicle)
&
H.
Stock
shows
of
the
abandoning the
-
,
the
Joint
mestic business is inherently an
affair of the moment. Another
factor
is
what
Russia
does
at
Federal
a
'■0^; U. S. Finishing
Tucker Corp.
Soya Corp.
top
housing
the
near
in \
the
/So
committee
to
plunked
fbr
public
a
test
the
U.
further.
will
S.
Another
to
coun¬
pro¬
test. It also would
is not doubted, to a
present
lead, it
magnifying of
preparedness
Hence
the
40
N.
Y.
1919
Security Dealers Ass'n
Exchange PI., N. Y. S
H.A. 2-87S0
Teletype N. Y. 1-1397
future.''.;""' *i
try stolen by the Reds would
vide
ESTABLISHED
Members
housing, along with a lot
of fancy new housing subsidies of
If Congress appropriates suffi¬ one
sort
or
another
to
try to
cient
to
make
a
start
on
the swing the nation back to rental
limited program and it does the housing,
even
if it is not en¬
job of discouraging Russia, then thusiastic about rental projects in
risks of war may be delayed or the light of rent controls and the
abated. On the other hand, the danger they might at any time get
U. S. is admittedly so far from tighter rather than looser. //
being in a position to strike, as to
What happened was that Ren.
suggest the possibility Russia may
Ralph Gamble, Chairman of the
the
M. S. WlEN & Co.
public housing pro¬
'//;
;■;>
gram.
>
~
Dorset Fabrics /■//
on
proponent, next to Harry Truman
of
r
England P. S. Pfd.
Con¬
Housing
and
Home Finance Agency, and chief
dor
program upon
associated
Remington Arms
west¬
Committee
Administration's
bureaucracy,
prospective limited effect of the
now
Tidelands Oil
gressional
factors
is
Byllesby & Co., Inc.,
Exchange Building.
New
evi-:
official report of the special
of
Co.,
M.
phase,
It may now be revealed that the
Fin¬
'
>
'•
,
one
preparedness
it
is
defense
in¬
far
plans,
too
y;
soon
to
evidence
chiefs'
limited
;
special
his
housing committee, had
staff
prepare
a
report
was
tices
in
it
did
lic
For Dealers
Up-to-date Circular
7
Now Available
Oregon Portland Cement Co.
and
recommendations. While the
port
re¬
critical of many prac¬
the
building
recommend
housing.
committee
industry,
against pub¬
When
the
assembled,
special
Senator
Flanders of Vermont pulled out
HAnover 2-O05B
LERNER & CO.
Investment
10 Post Office
Securities
Square, Boston 9, Mast.
Telephone Hubbard
1900
Teletype BS
69
Teletype—NY 1-971
Firm Trading
com¬
no
to
U.
Empire Steel Corp.
Markets
S.
FOREIGN SECURITIES
Susquehanna Mills
pre¬
All Issues
present
/
with Russia.
*•")""
fjARL MARKS & HO. INC.
possible that officials have
much broader strategic program
123 South Broad St., Philadelphia 9, Pa.
than the defense officials have so
Iear thru—Montgomery, Scott & Co.
L v New York A Philadelphia
i
far indicated. It may
unrevealed
that
:///;•.K
which suggests that the present
It is
a
Bruce
Arthur
—
become
that
to
that the
war
Chronicle)
PHILADELPHIA, PA.—Charles
Housing, was written for the most
style would:
part
by
some
of
Ray
Foley's
for such considera¬
bright boys. Mr.. Foley is head of
industrial
without
indicates
Conrad, Bruce
Alder
to
the
munist gains in the Italian elec¬
fear of ail out
want
rumored
attempt
vade northern Italy's
stronger
Herbert H. Blizzard & Co.
a
of
control
the
April
might
Municipals
•
the
have
later.
more
toward
region,
Atomization clause
indicate
would
possibility that Yugoslav forces
everything
another except
a
ever
for
accept the superficial
tions. It
They need
time in the
probably
legisla¬
of
•
Soviet
or
possibility
fail to make any decisive strides
country.
At
It
S.
look
pates instead that the Red3 will
the
We have traded
U,
then
resistance
—
Communists at any
procure¬
achievement this spring.
this proves to be the case,
want
France
and Italy will be taken over by
greater
a
is not something charged with
far-reaching
possibilities.
The
military phase can be discounted
.
last
four
number!"
maximum
clear the way
tion.
is calculated,
period
pnone
does not include
nish-Czechoslovakia
restraint, it
solicitation.
out
or cause any
Even
prospectus, Miss Carter,
a
leaping into the military
phase—if only the first step—
Russian
atom
arranged
has
&
(Special
client
program,
ther
service
where
be
one
offering it free to the U. S; with¬
/-'
lot of business for the
babies,"
great
*
and
'1",.A/.
indefinite
for suspecting that the program
as thus far revealed will either
now
or
time
reasoh1 would provide basic training for
no
a
but
that
they
adopted this modest starter on the.
assumption
it
represented
the
If
means
hence
you
;
Financial
Hanseli With
tive
points
bombing
needed.
cost of
Of that
authorization, and
delayed expenditure.
Con¬
your
if
Leydecker & Co.
son,
served
the
The
Conrad,
Stewart
The mil¬
for
to
formerly
bombs
combat
at
troops
for
tract
analysis
'■
Southwest
ment
until
expanded procure¬ the Russians themselves
developed
part will consist of con¬ the atom bomb and the
aside
with
might
actual program
mobilize
supporting
to four additional billions for the
armed services, a substantial pro¬
will go for the
the additional personnel.
in
official
an
a copy
.
Meter
deterring effect against steal¬
to
a
military economy in the
future. Of the proposed three
portion
for
Olsen
S.
tary force and
ing countries with 5th columns.
nothing suggestive in
the program that the U. S. is going
near
as
PORTLAND, OREG.
they
soup.
Russia
So the
There
"Housing
Without
Hanseli, formerly of Hiscox, Van
possibly be sufficient to
being.
a
:
;
potato
restrain
western
impressed.
a."
housing problem, it rates
(Special
a
to
iary indicates its belief that this
to
c
Olsen With
your
future,
near
tried to swipe
territory
sum
S.,
be
be
months,
entitled
i
m e r
it.
"Giving
prospect to the Polit-
bureau that, in the
on
European defensive
alliance against Russia, the west¬
ern Europeans will
not be much
"•
the
would
in
several
simply
few
,
Hence
months,
offer the
military power which can
brought to bear, and not be¬
the
M& ?
next
of U. S..
fore
af¬
pro¬
minority
is
now
looking at. Write to
to
bombs.
but scarcely enough to
respectable retreat from a
Dunkirk.
new
Iceland
or
filing
report
gressman
is
These B-29's could carry atom
combat troops the U. S. now has
available, the military would add
another couple of handfuls. There
might be enough troops to gar¬
request,
what
present strategic planning of
the
comparative handful of
rison Newfoundland
the
of the
outlined
from
status. However,
■,
Mediterranean.
the
it
"administrative
committee," i.e.,
unclassified piece of printed
an
in¬
years
the
acquire just enough
garrison a few islands
and
Alaska.
These
places
ob¬
viously would be air bases suffi¬
ciently
close
to
the
potential
enemy so that the available air¬
craft, the B-29's could fly into
the enemy's territory and return.
Obviously the military could give
no
hint, other than Alaska and
Newfoundland, as to what these
bases might be. It is possible that
they might be Greece, Turkey,
and
points
elsewhere
in
the
presented by the military
gram
So
Eu¬
in
use
to
the
views.
things the
western
of
hibited
them, the military
without quite spelling
simply,
troops
actual
*
*
For
U,
to something.
Yet the
other
could
as
the U. S.
the
amount
to
going
was
out
the
that
—
fairs
A
it
to support the western European
alliance
extension
matter
Among
chieftans,
privately placed upon the
by officials led to the
completely by surprise,
could be filed at least
creasing
"■ '
program
of
minority report. New Dealers in
There is thus
tant
was expected.
Indeed, the
Interpretation which was not
and
Demo¬
report
the Senate limited the committee
con-
their military potential.
no hint yet of a new
military lend-lease program. *
iJl.jhe build-up given
the program, something
of
facto
de
another
sharp change.
With
placing
Finally, there is nothing yet of
building
ordnance
and
aircraft
foment,"
five
the
committee.
report,
a
tracts with one's company.
be a very long
perhaps several
months. On the other hand, it may
be only a week or two or a month
stances,
into
bureaucracy
and ideal circum
most favorable
it
that the anti-public
housing re¬
port, intended to be the majority
words of the President's stop
however/?-
applies,
member,
with
make
conservative group sought to
have the special housing commit¬
tee extended for three months so
Russia special message to Congress, you can at the moment write off
the immediate military preparedness program as something which is
almost of minor significance to your business affairs.
only for the moment. Under the
to
the
and big
drama
and
GOP
voted
Taken
Iron the Nation's Capital
A
prepared
by
the
offered it
adoption. Flanders, another
Foley
for
be that their
•
SPECIALISTS
: 50 Broad Street
estiniate of the situa¬
_____
tion requires a much larger mili-
Hill, Thompson & Co.. Inc.
FOREIGN SECURITIES
.
Markets
New York
#, N. Y.
AFFILIATE: CARL MARKS & CO, Inc. CHICAGO—
and Situations
for
Dealers
120 Broad way j New York 5
Tel. REctor 2-2020
Tele. NY 1-2660
Volume
167
THE COMMERCIAL
Number 4686
&
FINANCIAL
Pictorial Insert I
CHRONICLE
■
......
.
^
_
Central States Group of I. B.
Julien
Collins & Co., Chicago, President of the I.B.A.; Wm. H.
Marshall, The Marshall Co., Milwaukee
H.
Collins, Julien
£<,• <:
Elrrer F.
William M. Rex, Clark, Dodge & Co., New York City; M. J. M. Cox,
v
Dieckman, Glore, Forgan & Co., New York City; Gerald E. Miller, Miller,
Co., Detroit; E. Cummings Parker, Glore, Forgan & Co., Chicago
Curtiss, House
Claude F.
& Co., Cleveland; Paul J. Mullaney, Mullaney, Wells & Co., Chicago;
Turben, Merrill, Turben & Co., Cleveland; Joseph Ch Stuart,
■,
Kenower &
A.
• •
*
F. S. Yantis & Co., Chicago
J. F. Brady, Secretary of District No. 8 of the N.A.S.D.; Arthur S. Grossman, Straus
& Blosser; Wallace H. Fulton, N.A.S.D., Washington, D. C.; Donald E. Nichols,
Ames, Emerich & Co.
William
P. Sharpe,
Andrew
M.
Louis; Alfred S.
Loomis, The Illinois Co.
Mercantile-Commerce Bank & Trust Co., St.
Wiltberger, Blyth & Co., Inc., Chicago; John S.
Baird, A. G. Becker & Co., Chicago;
Hempstead Washburn, Harris Hall & Co.,
Chicago
C. Harold Thompson,
Thompson M. Wakeley, A. C. Allyn & Co.,
Franklin B. Schmick, Straus & Blosser
Inc.;
Cruttenden & Co.; Ralph S. Longstaff, Rogers & Tracy
Richard M. Delafield,
Geo.
First Boston Corp., Chicago;
Securities Co.
S. Channer, Jr., Channer
Pictorial Insert II
THE
COMMERCIAL
&
FINANCIAL
CHRONICLE
Thursday, April 1, 1948
Twelfth Annual Conference
Carl W. Jackson, Harris Hall & Co.,
Chicago; Alfora J.
Baschen, Northern Trust Co.
Don G.
'
Henry T. Berblinger, and Clarence A. McCarthy, both of
Sills, Minton & Co.
Miehls, William Blair & Co.; Ray Olsen, Stranahan, Harris & Co., Chicago;
Ross A. Gustafson, Northern Trust Co.
v
*
Frank
Duffy, Eldridge
V»>
W! '-
-
Ketcham & Nongard
Robinson,
S.
Albert
Trimarco,
and
James
N.
Bay,
all
Harry L. Nelson, Blyth & Co., Inc., Chicago; George R. Torrey, Kebbon, McCormick
■& Co.; Fred T. Rahn, The Illinois Co.; Lawrence W.
Marr, E. H. Rollins & Co.,
Chicago; Francis W. McDonald, Lee Higginson & Co., Chicago
%
^T
1
W m
!
•/'
f
Pf
0
'
W
%
^
^
\5P^*
P. K. Van Winkle, Paine, Webber, Jackson
& Curtis, Chicago; H. Frank Burkholder,
?
,
Equitable Securities Corp.,
Nashville, Tenn.
n
of
Fred W. Fairman & Co.
,
George F. Noyes, The Illinois Co.; J. F. Brady, Secretary of District No. 8 of the
N.A.S.D.; Rupert Bippus, formerly Securities Commissioner of the State of Illinois;
Carl McGlone, Carl McGlone & Co.
Roy D. O'Brien and Tuthill Ketcham, both of
*
Alfred J. Betar, Chris J. Newpart, S. "Knox Kreutzer and Edward
Merrill Lynch, Pierce, Fenner & Beane
G. Chase, all of
Nathan D. McClure, Harriman
Ripley
& Co., Chicago
Volume
167
THE COMMERCIAL
Number 4686
&
Held March 23 and 24,
Howard F. Detmer, Detrrier & Co.; Walter J. Fitzgerald, Jr., Walter
L. M. Rieckhoff, Northern Trust Co. of Chicago
William
F. Hunter,
all of H. M.
Gordon Booth, and O. G. Corns,
Byllesby & Co., Chicago
Glore, Forgan & Co., Chicago; Robert
Chicago; Paul L. Mullaney, Mullaney,
E. Cummings Parker,
& Co.,
C. W. Evans, Harris Hall &
A. Podesta, Julien Collins
Wells & Co.
Co., Chicago; J. Franklin Bickmore,
Chicago; H. A. Talbert, Blyth & Co., Inc.,
Joseph D. Blosser,
Fitzgerald & Co.;
Boettcher & Co.,
Chicago
Franklin B. Schmick, and Frederick W. Straus,
all
of Straus &
Blosser
Pictorial Insert III
CHRONICLE
FINANCIAL
1948
Arthur W. Curtis, A. G. Becker
& Co.; Chicago;
Kebbon,McCormick & Co.
Clarence E. Torrey,
Nathan S. Sharp, R. S. Dickson & Co., Chicago; Lore W. Alford, Harris Hall
Chicago; Charles R. Park, Greenman & Cook, St. Paul, Minn.
Andrew M.
&
Robert
R.
& Co.,
Baird, A. G. Becker & Co., Chicago; Lee H. Ostrander, William
Co., Chicago; Elmer J. Hassman, A. G. Becker & Co., Chicago
Brinker, John Nuveen & Co., Chicago;
Blair
Chas. A. Capek, Lee Higginson
& Co., Chicago
Corp., Chicago; Chester W. Laing, John Nuveen
Russell T. Stern and Byron G.
Webster, both of Merrill Lynch, Pierce, Fenner
& Beane
Pictorial Insert IV
THE COMMERCIAL
&
FINANCIAL
Thursday, April 1, 1948
CHRONICLE
/Illinois
mm
George J. Gruner, Lee Higginson Corp., Chicago; James F. Quigg, Paine, Webber,
Charles Fry, Chicago Journal of Commerce; Harry L.
i\eison, Biytn <Ji Co., Chicago; David L. Shillinglaw, Shillinglaw, Bolger & Co.
Jos. P.
Jackson & Curtis, Chicago;
p?
ft'lL
Condon, McDougall, Condon & Co., Chibago; Matthew J. Hickey, Jr., Hickey
j & Co.; Wm. D. Kerr, Bacon, Whipple & Co.
X
ri
mmwm
if
■■J
m
Chas. E. Enyart, Enyart, Van Camp & Co.; Jean A. Horacek, Enyart,
John
Walter
E.
Kirstner,
A.
A.
C.
Chicago
Van Camp & Co.;
Kelly, Smith, Barney & Co., Chicago
Allyn
&
Co.,
Harold
A. Tubby, Hemphill, Noyes &
Co., Chicago;
Plummer P. Purdham, Burns, Potter & Co., Inc.,
-
Wm.
A.
Joseph O. Stuart, F. S. Yantis & Co.; O. G. Corns, H. M. Byllesby & Co.;
Talbert, Blyth & Co., Chicago; D. K. Searles, Blyth & Co., Chicago;
H. A.
;
Grigsby, John Nuveen & Co., Chicago;
Hackbert, Goldman, Sachs & Co., Chicago
Paul
Omaha, Neb.
p",;
David
J.
Harris, Sills, Minton & Co.
'
Charles Higgins, Merrill Lynch, Pierce, Fenner & Beane;
Harris E. Wilder, The Illinois Co.
@FedFRASER