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m
Final Edition
Volume 163
ESTABLISHED
Number 4478
,
New York, N. Y,,
OVER
Price 60 Cents
Thursday, April 4, 1946
Dollars and Banks
a
Copy
on
By THOMAS I. PARKINSON*
Estate Activities
'
'\
President, the Equitable Life Assurance ♦Society
Pointing Out Dangers in Our Inconvertible Currency System Under •;
I Present Excessive Money Supply, Mr. Parkinson Outlines the
Expediter Wyatt 'J Says
:
It was perhaps inevitable that the hearings and discus¬
From 25% to Well sions incident to a decision
by Congress whether or not to
Over 100% of 1940 Level. Great¬
Creation, by Bank Buying of Government Bonds, of Surplus Money.
renew the
authority of the President or his associates to con¬
Asserts Federal Reserve Board Is No Longer Independent and Is
est Rise Occurred Since V-J Day
trol prices would
give evidence Of much confusion of thought
Following Dictates of the Treasury., Says Difficulty Lies in Bring- ; Notably in Homes. Says Congress and
an
expression to at least a modicum of sheer nonsense.
ing Sound Bank and Monetary Practice Into Agreement With •
Should Make Provision in Patman
At any rate, such has
actually been the course of events dur¬
Bill to Curb Speculation.
Treasury's Insatiable Desire for Lower Interest Rates, and Urges,
ing the past few weeks. As was once true of the word
> Heal estate prices have increased
j Commercial Banks Take Action to Stem Increase in "Inflation"
"deflation," the expression "inflation" is now a word to con¬
from 16% to 18% in larger cities
Deposits. Contends More Production Will Not Alone Stabilize
since V-J Day alone and now jure with, politically speaking.
The fact that it can be made
Money Supply or Prevent Inflation. '
range from 25%
to well above to do such yeomanly service in the current campaign for a
You know practically all of my business experience and business
100% T o v e r,,
"i :■■.#•,
continuation of planned economy bears witness, we are
1940 — an in- f
responsibility have involved taking care of other people's money.
afraid, to a great deal of misunderstanding in the minds of
That gives me
Ration ; "far ;
the general public,; and we must add, also in• the minds of
worse
even
something, in
A. Wilfred May's column,
common
with
than had been
many who call themselves economists. •
you.
But my
anticipated"—
"Observations,"- is again
Rightly or wrongly, "inflation" has to the man in the
:
!
t
In 2 Sections—Section 2
YEARS
Housing
Prices Range
*
'
1
f
:
_.
<
responsibility,
especially
in
the
omitted because of the
rent
insurance
of
other
people's
money.
The
m o n ey
that
people
have
entrusted
''s issue,
to
portion
their
of
they
.
I
make
for
people are in terms of dol¬
am talking to
you: today about the present and
lars.
cur-
needs.
which
other
money
for
use
rent
;
investments
-
_
_
_
.
T. I. Parkinson
fairly substantial,, fairly rapid, and general rise in prices,
particularly perhaps prices at retail of those things which the
rank and file of the people buy.
One very natural result
is that attention is directed primarily at prices rather than
at factors which cause prices to move in this or that direc¬
tion. It easily follows that popular effort to avoid "inflation"
as thus defined is directed chiefly if not.
solely at effects or,
The report
covered
cave" has"
not been that
street, and, for that matter,: to most observers of much
greater intellectual attainments, - come to mean simply any
March 29.
on
v
ought to be interested in the pres¬
ent and future stability and pur¬
chasing value of that money. The
my
Which
meeting of the UNO
Security Council in New
York City.
For Mr. May's
commentary thereon see
cover page of Section 1 of
in¬
volves partic¬
ularly the in¬
business,
vestment
according to a
report made to
Nation a 1#
Housing
Ex¬
pediter Wilson W.Wyatt,
made public#
cur¬
Therefore, I
cities of
000
84
100,more
or
population and# l
end results rather than at
cities,
/t^was
by
Wilson w. Wyatt
conducted
people for which I have been and
am responsible is that portion of
their money which: they put away
for some future use. And, there¬
fore, my responsibility and my
interest lie in the long term and
the long view.
When you put
away some portion of your pres¬
an
I
read and
am
am
always too close to
♦An address, by Mr. Parkinson
the Bond Club of Phila¬
before
delphia, March 12, 1946,
(Continued
on page
.
'Special study
not
expert in this monetary field.
Indeed, I
ent values for future use and you
put them in a form in which they
will be returned to you in money
rather than in goods, you are and
to
.
•
1844)
rises since
rises
arid the effect of
homes which, in
on
$12,000.
<
The
;
or
a
The week ending March 16 revealed
ment claims which amounted
a
10%.
in
less
;
,
r
beginning April 1,
that
occurred
in
the
week
.
and wages.
5;.- .=
The* operators
of the United Mine Workers Un¬
ion of which John L. Lewis is
while
President,
small
failures
showed
an
only two-thirds
those in the comparable week of
increase, but
1945,'
were
-v
23
ties
increases
cities
of
(27%)
75—100%; 24 ci¬
(40%) report price increases
(Continued
on page
By
.
:
an example of the misrepresentation I which is being given
public affairs these days the impression is widespread that a
relatively small group of Democrats—Southernera—are joining up
with "reactionary" Republicans to thwart the Administration's great
Liberal program.
That great Liberal, Henry Wallace, has, indeed,
called for the punishment of these recalcitrants, and at the recent
As
about
Jackson
Day
dinner, T
1843)
man
r u
on
Tuesday
of
this week rejected safety demands
Mr, Lewis stated that
the
management representatives
had on that day rejected three un-
(Continued
on page
1846)
Editorial
Page
Financial
Situation...:
1837
any
able to get
At least 30
to
Regular Feat urea
From
Washington Ahead of the
News
...................
to
aria
situation.
State
of
Trade
Commodity Prices, Domestic Index. 1850
Weeklyr Carloadings,,......... .1851
Weekly Engineering Construction, .1847
Paperboard Industry Statistics.,... ,1851
Weekly Lumber Movement....,.. .1851
Fertilizer Association Price Index,,. 1848
Weekly Coal and Coke Output ...., .1850
Weekly Steel Review.........,.,.,.,1850
Moody's Daily Commodity Index..,.1847
Weekly Crude Qil Production..;,,,. 1848
Non-Ferrous Metals Market...,..1849
Weekly Electric Output1848
Industrial Activity During Feb-
.......,#1841
232
leadership.
Democratic
mem¬
The ratio in
There
proportionately fewer "Liber¬
that
body than in the House.
This is not the picture the coun¬
try is getting. The reason is, man¬
ifestly, that, although the "Liber¬
als" are relatively few in num¬
The
th
called
e
so-
Liber¬
are
in
a
bers they are
minority even
in the Demo¬
Carlisle Bargeron
cratic part y.
are
course;
speaking of Congress, of
The
Conservatives
con¬
stitute the majority.
It is not a
case.. of Truman's "Liberal" pro¬
gram
being held up
backsliders in his
primarily by
own
party.
He
•
ruary
are
als" among the Democrats in
mazing
that
We
supposedly knifing«
are
plain facts, are
als
are
bers of the House.
It is rather
Items About Banks and Trust Cos.. 1842
Review................... ..1837
Republicans, leaving
110, at the most, Dem¬
the Senate is even greater.
Trading on New York Exchanges.. .1849
NYSE Odd-Lot Trading
..1849
General
There
Wal¬
40 votes are drawn
or
Administration
the
lace.
;
or
ocrats who
sup¬
port
i.......1837
Moody's Eond Prices and Yields....1847
only 100
intended
give
the
from
serting a par¬
agraph in his
speech which
was
caucus. # The highest vote
of these measures has been
in the House is 140.
party
-
fi¬
was
eoned into in¬
GENERAL CONTENTS
of the News
CARLISLE BARGERON
nally " bludg¬
ending March 28 of business fail¬
ures.
The drop according to Dun
Bradstreet, Inc., took place in
larger failures of $5,000 or more,
&
price
more;
Ahead
$6,000
ous
12:01 a. m., on Monday of this
week\ when 400,000 soft coal min¬
ers remained away from the pits.
;
The present coal strike is the
second largest single strike in the
country since the end of the war,
being outranked in size only by
March 23 also showed some im¬ the four weeks' walkout of 800,000
provement, being 4,724 cars above steel workers who last February
those of the previous week. Paper Were successful in obtaining a
production advanced to 105% the wage increase of 18 Vz cents an
same week, but paperboard output
hour. • The miners are seeking im¬
declined in the week to 99%. A proved working conditions involv7
welcome feature was the reduc¬ ing health and welfare programs
tion
or
show increases of
further decline in unemploy¬
the operating rate of the steel
companies was placed at 89.4% of
capacity, while output of electrici¬
ty both for New York City and the
country was above that of the pre¬
ceding week. Carloadings of rev¬
enue freight for the,week ended
1840)
Washington
;•
1940, the larger cities
show
(11%)
100%
The expected strike of bitumin¬
coal miners care to pass at
'
*
^
For the week
From
greater than
even
existing homes.
on
reported; as follows: Nine cities
materials obtained to curtail output in some industries, while
dearth of skilled workers impeded increased production in others.
on page
.
survey
On houses which sold for
raw
(Continued
also included ; a
study of increases in the prices of
raw acreage
and fully prepared
building lots and showed such in¬
/
creases- were
Total Industrial production continued to rise the past week and
reports from many cities, likewise, indicated a gain in enployment
and payrolls.
Notwithstanding these favorable factors, shortages
v
made of price
the spring of 1940 and
1940, sold for $6,000 or less and
on those which sold for $6,000 to
those
of
great handicap under which those who would
inject at least a measure of common sense into all these dis¬
cussions must suffer, is the public faith in, not to say worship
of, "statistics," "indexes," "charts," "projections," and the
like,
Of course, those who would persuade Congress to re¬
new price control authorization find it very simple to select
various "series," and to concoct impressive looking "charts,"
was
since V-J Day,
those
Another
1
,■
presidents of Federal Home Loan
Banks, regional managers of the
Home Owners' Loan Corporation,
lars.
insuring offices of the Federal
First, let me say that I did not
Housing Administration, and Mr.
come here to read an essay on the
Wyatt's regional expediters.
subject indicated by my title.
1
don't like
Another Handicap
.
-
,
future volume and value of dol¬
The money of other
causes.
250 smaller #
could not
even
get it through a
mightily vociferous.
They have the propaganda ma¬
chinery for which tiie taxpayers
are paving.
It is not only a fact
that these elements do not con¬
stitute
a
majority in either one of
the major parties,
but that by and
large they command little respect
amon* ti^eir colleagues.
Some of
(Continued on page 1843)
THE COMMERCIAL & FINANCIAL CHRONICLE
1838
i
Midwest Slates Hold
Price Control Successful
y';:.
•:
Secretary of the Treasury
Contending That Extension of the Stabilization Act, Without
Crip¬
,
f
War I Can Be Avoided. Says We Are on Our Way to a Balanced
Budget and That the Only Long-Term Solution of Problem of Rev¬
enue and Debt Management Is High-Level Production. Denies That
Price Control Removal Will Increase Production.
- -- -
~
I
ered
work
ures
be
to
ment.y In .the
painstaking
and thorough
which
and all of the
o
have
devotion
to
duty and hon¬
of.
esty
pur¬
;
pose.
Of
major
important
subjects you
Secretary Vinson
the
States
all
of. the war"
just" finished,
ing World War II, about half of
the
n at ion a 1
product
was
to consider,
outranks going
for- war
purposes.
Thi^
the prevention of inflation. The compares with a maximum of only
extension of the Stabilization Act, about one-fourth of the national
without crippling amendments, is
product going for war purposes
: the
biggest single aspect of our in World War I—and then for a
battle against inflation. We won much shorter period. Yet, retail
.this battle year after year;during prices
paid by consumers, as measj
>•> the war, and I am confident that ured in each case by the index
V
-
'
on
.
direct assignment from our
President,
Franklin
D.
:... Roosevelt, for nearly two years.
¥. Later in the %■ Office > of War
was
the field general in
the
and
had
us
-
able
tor of the Office of Price Admin¬
istration.
I
should
like
to
»also that Paul Porter
was
assistants while I
Office
of Economic
He did
a
of
Stabilization.
f
job for
us
in
there, and
stahilWatirm
Stabilization.
were we; so
much
successful in World War II?
more
ty to administer with success the
Office
of
Price
Administration'
nomir
to weaker pressures.
response
Why,- then,
I have full confidence in his abili¬
t*
In
first
the
place,
we
applied
aecomnli?h th^resulfe
results
that
that
desired and expected.
We
taxation with the enactment of the
first Revenue'Act of 1940 in June
1940;
had a good team to administer
the? law. And my brmf summary
our
war
pres¬
to
j, bear
on ? the economy.
is' because, a large propor¬
tion
of
:
moved
population
from its
normal
is
re¬
tasks of
goods
and " rendering
for the civilian popula¬
tion, and is placed, instead, in the
business of making the goods and
rendering the services of war. The
product of ; the persons in the
services
forces
and
dustries is not of
a
in the
war
type which
be sold to the civilian
•
in¬
can
spent,
in
large
part, on the products of the per¬
sons
still
in
the
tries.
During
war,
civilian
♦Statement
son
of
•
?
t'
Secretary
f
Vin¬
before the House Banking and
Currency Committee on the Ex¬
tension of the Stabilization Act,
March 27, 1946.
.
•
n.
■
War
of the cor¬
responding steps were, taken after
we had entered the war.
'
World
As
a
I,
»
all
consequence*
in part, of
starting earlier, we have achieved
better results on the fiscal front
in
War JL From
World
July,
1;/
1940, about the .■ beginning of the
program
of defense finance, to
the present time, 44% of the ex¬
penditures
of
have
and
the
Federal
been
Gov¬
by
covered
other nonborrowing
receipts. This compares with 33%
for the World War J period begin¬
ning with the outbreak of the war
in
Europe
and
June 30, 1919.
popu¬
product of
lation is living on the
only part of it.
indus¬
all of the
n n
1941, and so commenced the or¬
ganization of war savings. ;.In
ernment
tinue to receive incomes, and these
i~,.
..
The
most
continuing
-y y'■■■;;-''>:
to
1 *■.yl.
important difference
^°tween World-War I and World
War
in
of
II, however, is the difference
emphasis on the different types
controls.
deal
from
We
learned
experience.
In
a
great
World
War
I, very little emphasis was
placed, on direct; cq«t.mi« T'here
(Continued on page 1847)
^
said
"But,"
Co.
evils
'The
Co.
North- American.
quorum
51
Ganson Pureed, Chairman' of
This
mission.
was
-noted in spe*
gram,".which' also had : ^he- folf
lowing "td say, in part: ' / * & -j
"He
isr: attending
hearings
"Mr.
Purcell
that his;
said
^
'
denial last Monday.
lesignatibh is::?™^
The
that the best evidence of
that was
the White House denial...
is
known
The
company
publican)
.
mission.
production and distribution of gas
and electricity and the meetrni
:
•
but has
remain with the Com¬
As to the long term fu¬
admits he does
Commission
for
nearly
as
a
Commissioner
Chairman."
and
four
as
on
race
is on, and
is just below
war
•
New'
Hampshire
School at the Wal¬
according
to, the
"Herald
29,
which
Tribune"
also
of
indicated
that he stated that th.e diplomacy
fear evoked; by
the atomic
of
bomb will
lead straight to war
unless the United States and Rus¬
sia
get
together in a revival of
honesty and - integrity.
common
nated
From
the
"Last
January, the Senator said,
resulting from uncoordi¬
and
unintegrated: public
utility holding company systems.'
"These evils,"
he said, "were
found to be polluting the channels
same
paper
quote:
we
he went to President Truman out
the form of transactions occurring
about atom policy. He
representations,' that vbe
first thing' to do was meet with
in
Great Britain and -the Soviet Un¬
of interstate
and
than
concerning
one.
/
•
"Congress
national
also
well
as
the
traceable ii
mort over, were
large part to the nature and
of
tent
the
securities
owned
ex¬
by
tne
holding companies. I
..: •
"Congress, therefore, had power
"In
on
tempt to remove those evils by or¬
such evils
American
possible."
that the
hence
may
basis of Federal
conceives the
and
not be made the
legislation '^mis¬
this case,"
issue in
added that the
same
miscon¬
ago
ern
streets
viving.
.
shops and cities,
" 1
t
arid that are lawful
prohibited by the Consti¬
tution,"^Justice Murphy said, "this
Court in the Northern Securities
Co; case
recognized that Congress
ership' of
securities
^
in ' order
...
to
oiotett tne rr^euom oi commerce
.
_
-
likewise has the
power
added,
thatCongress ».h?d
concluded, after extensive studies
made before'passage of the Act
that *'the economic advantages of
a
an
ihtefests
may be affected does not, by it¬
self, fender invalid under the due
process clause the determination
made bv Congress," the opinion
"The faet t^at valuable
declared.
i
Locke Aide
y.
It
to
Trumaii;
was announced at the
House
dent
on
.
a
,
J--.
March
Truman
19
■
White
that
Presi¬
has
appointed Ed¬
win A. Locke Jr., of .Boston as a
special Presidential assistant. The
announcement
indicated that
Mr.j
Locke will work, with the Presii?.en^ on governmental reorganizefh
A W\ s-vlvt rt1
rt t,
»»
Y*
tion, among other duties. In As-*
sociated Press advices from Wash¬
this case."
He
r
;
T1AM
■
Coneress
■>
Leonard
Boudin,
board
president; Mrs; Charlotte Hawkins
Brown, director of the Palmer
Memorial Institute, and Miss Fan¬
1
appropriate
,
school;
.
.
are
"Other speakers were Mrs., Ellen
Steele
Reece,
director
of
the
as
and not
in
and
more than 40 years
in a case involving the North¬
nie* Hurstt novelist."
Securities Co. ' "• • «<<
"Inasmuch
a1
civilized man's hope of 'catching
up with ourselves again' and sur¬
contention
that the ownership of securities is
not in .itself interstate commerce
and
accepting the award arid
war bond Dr. Mead spoke
'Educational Urgencies in the
Her point was that
modern forms of schooling, which
take learning into and out" of the
said
Co.'s
y-
Atomic Age.-
companies to
Murphy
*
$1,000
under the commerce clause to at¬
made
together^
to Dr. Margaret Mead, anthropol¬
ogist and mother of a pupil in the
school, for outstanding achieve¬
ment by a woman in social, sci¬
ence.
%;
These
of investors ana consumers.
ev/ils,
-reason
"The occasion was the presenta¬
tion of the Avon Award of Honor
interests
was
as
ion and
;
-
-
that the
thereby
found
welfare.,
harmed,
'
■
concern
'made
States
more
'
y
•,
of
and to take
commerce
,
12 years, five of which he served
made?
evils
N
reports, point out that he has been
York
March
;
.
with- the
Community
New
"concerned with the economic
was
fi
Senator Tobey (Re¬
of
.
dorf-Astoria,
justice
holding comoany at the top of
unintegrated, sprawling system
riot know and adds: "I have never are not commensurate with result¬
ing economic disadvantages."
>
thought that I would spend the.
The reasonableness of that con¬
rest of my life in this job..".
; /,
clusion, he said, is iot Congress
"Friends, in commenting on the to determine.
•
ture the SEC head
was
sooke ythiisih i ail; address to-"a
dinner meeting of the Downtown
>
" -in¬
Murphy, speaking for
the Court, said that Congress ir.
enacting the death sentence clause
,
in
v
:
or trading about
bomb, it is clear to me that
the horizon."
Department
of local needs."
evils
by Senator Charles- W.
we persist in a
policy of
the third world
said these in¬
"inflationary
write-dps
acquisition of properties at grossl)
he has had
that
outside offers in the past
chosen to
•
assertion
28
another armament
cluded
the
shadow-boxing
;:V
maVkdeal with^nd affect the own¬
offered, and
that it has not been
"It
j
emphatically
of
evils grew out of
Congress
may
bet protect the freedom of interstate
-commerce by any means that are
fore the; Boren.. Committee.
oorts of his resignation have oerT
rioted in the fade pf a White Ifouse
existence
particular situation."
the
holding
"if
themselves which
in 1935 after Congress found man>
29 ception existed
Tele¬
New .yolk "World
the
the
March
une Justice Department .told the
Supreme Court the Act was passed
activities.
added,
liptei&aey of Fear May
Leatl (o War:
Tobey;
:
Justice
reports. that he has
resigned was made, on March. 29
opinion
disclosed
each
in the
case,
' ?•:
the
legislate as it
did, Congress had1 power to legis¬
late generally, unlimited by proof
•
it lacked a
cause
that
Denial ? of
the
;-
ap¬
.
North
Resign From SEC
*
sen¬
to
entitled Congress to
divest themselves of the securities
He Will
applied
as
stance." :
American
dering the holding
cial Washington advices. March
.
»
taxation
be
•
to,
.
population;
will
Advisory
the
*
physical level; we formed the Deil.
fense ' Savings ? Staff
in • March
but the persons producing it con¬
incomes
-
the Securities and Exchange Com¬
making
armed
j
by
~
This
the
struction.
of the allocation of goods on the
is, I believe, a part of
Irn/Mlrlo^rtn
common
knowledge
that
brings powerful inflationary
formed
we-
,
ap|
Commission to the Council of Na¬
changes, is still intact.
It
immnn
sures
'
reasonable effort to
a
ply the method of mass produc?
lion to the problem - of. housing;
adding? that; this method: seemed
to offer the best 'hope, of lowe^
costs- and increased home con*
tional ^Defense in i May l$40if and
so
commenced the organization
shows that the team, while having
some
make
S
Parcel! Denias
wl ^^ro6?!]
We were all .possible, in large part, because we
^arted s001ier. We took;our first
accomplish, the
were
.
all of the methods in a more vig*
oroiftjiashta. .This, was made
*
toward the wartime level-, of
to
to
policies
of the Federal GqyernmcAt wbicb
he said were "delaying and blockihg production,"; He went, on to
say that? the nation has failed to
applied also in World War I; yet
prices rose much more, although
in the
*
fine
housing discussions have
abolishment of restrictive
All three of these methods were
one
-.
other
the
report
was
my
we
• -
conclusively that the real
bottleneck' causing
the housing
shortage is the lack of lumber and
stimulation
of
savings; and • direct controls
over
prices, and the physical al¬
location of goods.
i
y
;
taxation,
classes:
help of
'Chester Bowles, the Administracourageous
*
,
the Office of Economic Stabiliza¬
tion. At all times both of
•r '
'
>
.
eco¬
nomic stabilization while William
H. Davis
with
compared
Reconversion, I
less vital interest in
a no
-
proven
and V-J Day, as
a
rise of 62%
Europe in 1939
great'
had
Associated. Press
building materials," said a
preamble to the resolutions. > The
between the outbreak of the war preamble said also "the policies o\
the
Federal
in Europe in 1914 and Armistice
agencies have ;re«i
Day.
y
".
'
* larded the product*^ aM distri-j
H
v What
were
the measures by bution of these materials."
which
prices
were
thus 5 held | - Governor Blue: sounded
the
down during World War II? They keynote when - he declared thai
on» of the means of solution was
may be grouped into three major
my
Mobilization and
Press,y were
the
From
quote:
'The
tween the outbreak of the war in
;
represented
clause
1942, re¬
quired > it. to dispose of assets
.vhicn cost about $190,000,000. The
North
The
-
the SEC order, issued in
Indiana,
unfair prices,v and preoccupatio,
Kansas,
Kentucky,
Michigan;
Of management with financial ma¬
Ohio, Oklahoma, South Dakota
neuvering rather than efficient
and Wisconsin. j
1
of Labor
Bureau
Other 'states
conference, accoramg to the
Associated
Statistics, advanced only 31% be¬
The battle against inflation was
:
the
of
number
be
mnstitutionality' of the clause;?
at tne
Murphy said the conten¬
made that the death
was
tence
pealed f to the Supreme"; Court in
February, 1943. But the. Tribunal
was
unable to act previously be¬
Dakota.
none, in my judgment,
) now we are not going to walk off
the field and lose by default. V
tion
of
production l of lumber and other*
building materials;! y:,y
The Governors comprising the)
committee were Robert D. Blue of
Iowa, Chairman, and sponsor of
the conference; John C. Vivian of
Colorado, Dwig.ht Green of Illi-|
nois, Edward J. Thye of Minne¬
sota, Dwight Griswold- of Nebras4
ka and Fred G. Andahl of North
which the United
has -been engaged.
>
|
a considerable period dur-i
For
called up-
are
Justice
com-^
one
mediately establish price ceilings
which Would encourage - the full
in
-war
Commission that the
divest itself of all but
SEC'told-North "American to cortspecifically define ;the i duties
the OPA, with provision for ihei »ine, its activities to a. system in
protection
of*, the ;publ'C./rathe?] ,;4e St. Louis area.* The Federal
than the fixing of profits..
:] Circuit Court in New York City
'M 3; That' OPA be obliged to im-i upheld the order and affirmed
upward pressures were thef
powerful. which .have i yet;
generated in the American)
economy; but the American peo-i
pie, acting through their Govern-)
ment, • combated them so vigor¬
ously that the rise in prices dur-i
ing the war which has just ended
was
less, than
in any previous
high
a
&-
ana u,a-
;
been
the Committee
h
OPA gradually
the
12. That legislation be 'enacted .td
these
f
l,/' "
appeal by the North American Co. from
an
delivered the. North American Co. was unconsti¬
Court's 6 to 0 opinion.
Justices tutional A'since none of the evils
Douglas,. Reed, and ...Jackson die, that led Congress to enact the
not participate in the decision.
statute
are
present''in -this in-
the liquidation to be
followed up with an end of Gov*
ernment control .of industry,
most
members
>T * /
That
on
by the securities
its utility systems.
>. Justice.
Mui pny
liquidated,
case
-
have
we
pany
1.
part of the Govern-i
the
on
cnange
Vices.
i
the B An upward,pressure on prices,isj
I inevitable, therefore, and can only!
ever
oe counteracted by vigorous
meas-j
your
order
an
presentyafky cf Congress,
according; to Associated .Press ad-
by
have
The: Court ruled
;
.
.
ernors
Congress.
found
Staies adopted■! tnree
pertaining to the Of¬
The
resolut.ons,-drawn -up b-y a com¬
mittee composed of tVic *s x Gov¬
Upward Pressure on Prices
consid¬
Holding Ad Upheld by Supreme Court
fice of Price Administration.
of the most im¬
Before this Committee comes some
portant legis- »
lation
14. Midwest
resolutions,
f
before this able Committee
alwajs very pleased to appear
am
of the Congress.
Ulilily
v^; V: The United States Supreme Court on April Lupheld the constitu-'
tionality of the "death sentence" clause of the Public Utility Holding
At a housing conference/at Des Company Act. which clause requires interstate gas and electric hold¬
Moines, la., \on March 25., Gover- ing "companies.?to limit their operations fo a single, integrated system;
states an Associated Press dispatch; which further goes on to say:! y-r
nors and other representatives; of
pling Amendments, Is the Biggest Aspect of Battle Against Inflation,"
Secretary Vinson Holds That Wartime Price Control Has Been <
Successful, and That by Continuing Control the Aftermath of World /
'"
"Death Sentence" Clause of Public
>
Housing Conference;
Urge CPA End
'By HON. FRED M. VINSON* '? y;;y
Thursday, April 4, 1946
ington,- March
Mr. Locke,
19, it was stated:
former executive as¬
a
sistant to Donald M, Nelson,'both
when the latt°r was War Produc¬
tion
Board
when he
Chairman
was
and
later
the President's per¬
sonal representative
on economic
problems of China, will also be
available for assignment in that
theater,
When Mr. Nelson gave up the
Chinese economic post (he heloed
set up a WPB for China)
Mr.),
Locke
succeeded
him
in
May,1
19.45„ as..the President's.personal
representative on
nomic problems.
Chinese
eco¬
Number 4478
Volume 163
" THE COMMERCIAL & FINANCIAL CHRONICLE
■
Order Issued fsy
Ten Years of This Nonsense?
"Conversation with Germans in the United States
£one reveals that so far we have not
•
been successful
primarily for the construction of homes for veterans, is probably
as far-reaching in its implications as any restrictive business regu¬
lations issued during the war. As a consequence of the directive, an¬
convincing them of-Germany's war guilt or of
own collective responsibility in the National
Socialist regime and its excesses. x This is particu- ■ ^
larly true of the younger Germans, including most:
of the war veterans, who refuse to listen to either^"]
Americans who
or
nounced
allconstruction
and
repairs, to
non-residential .na¬
ture will be" jseriously curtailed;
although its issuance has been ex¬
pected for a long time, it was
buildings of
"University students at Erlangeh, north of Nur¬
emberg, are an example of this tendency. When
Pastor Martin Niemoeller tried to explain collective;:;
responsibility to: them in a speech, they made so
used
'
land
V
«.
frequently noted, too, that no amount of ■*:?
pleading by German politicians and political writers,
in the press of the United States zone seems to have
any. effect on* the political lethargy of most of the
young people. - Although they constitute the group '
which sooner or later will provide Germany's lead¬
ers, they are as yet uninterested in politics and oc¬
casionally v are bitterly antagonistic toward those
Germans now holding political posts under the
United States Military Government or heading vari¬
ous political parties in the zone.
•
'
•
*
*
-
*
.
■
'
.
"Although the results thus far 'have not been as
solid as one might wish, there seems good reason to
believe that, if the occupation lasts for 10' years
and if for 10 years press, magazines and radio pro¬
vide the Germans with a clear exposition .of hpvr
their advantage to
adopt a democratic form; of government, and; why ;
the free economy of the United States: and: other
democracy works, why it is to
Western democracies is
totalitarian
in the long run superior to
ideologies, the German mind will be di¬
militarism and pan-German¬
representative government and peaceful
Drew Middleton in the New York
verted from fascism,
ism toward
ideals."
—
"Times."
In lO
years? !
Heaven help
if
both the Germans and the rest
do not come to a
we
nonsense
of much of this
much less than a decade.
of us
realization of the innate
"re-education" business in
'
in Auto Inijissfry
*
I Explains Report on Wages
f Secretary Wallace States Thai It Was Not Intended as an Official
Forecast of Costs, Prices or Profits, but Merely "as a Reasonable
'
Range of
Assttmptions"
Secretary of Commerce
following statement, made
Henry A. Wallace on March 15
after studies and discussions
Ad-
Business
garded,
visory Counsel
.'i of the Depart-
the
with
cost,
-it
re
1 a t i
; :NOV.^I; 1945,
'-
Htnrjr A. Wallace
contro¬
That
•' •
--X, •
report, based on a study by Harold
'Wein, an economist, who submit•ted it to the Department of Comimerce for consideration for publiversy.
.
; «cation, reflected an initial effort
;-in the development of statistical
.methods and techniques to deter¬
mine and project cost, price and
profit relationships under varying
assumptions as to volume of pro¬
duction
course
and
There
sales.
inherent
are
uncertainties
of
in
.projecting cost,I price and " profit
relationships for any specific in¬
dustry and even for industry as a
November
should
1
were
they
DO
to
are
carried
zation
on
construction
for
jobs for
ratings have
been issued under Priorities Reg¬
ulation 35 (The Veterans Emer¬
which
"(2)
preference
Housing Program) ,/y
It does not apply to
re¬
itself.
•
"(3) It does not apply to roads,
sidewalks,
railroad
or
streets,
street PT interurban or plant rail-
Federal Housing Adminis¬
Wajrtfacks pi operating facilities
(other
than
buildings), fences,
office: * Associated with • each of silos, bridges, tunnels, subways,
these CPA offices will,bewan: ad7 pipe lines, power or utility lines,
visory committee of outstanding sewers, surface or underground
citizens;
including
ohe
recom¬ mines, wells, -dams or canals. mended by the Mayor or Gover¬
"(4) It does not dpply:to certain
nor, one from the ranks of gen¬
repair; and maintenancev work' in
eral business (Chamber of Com¬
industrial, utility and transporta¬
merce); a "representative; of the tion structures, unless such' work
builders, of building materials, is
capitalized for taxation pur¬
the press; etc., as well as ' the dis¬
poses.
, "
"
.
trict
manager
of
the " Federal ;
"(5) it does not apply, to the in¬
Housing Administrations
"This citizens' committee will stallation pm the ground (or, out¬
side a structure of any kind of
therefore be composed of men; in
equipment not attached to the
•Whom the community can have
structure. %
J
•
7 :
full
confidence and who will
(-3) It does not apply' to mili¬
screen each project in the light
of- the -peculiarities of the local tary construction :or;to proj ects of
situation," Mr. Small said. "They the Veterans' Administration. The
will determine" first if" it is essen¬ federal' Government is forming
inter-agency
committee
to
tial under existing conditions. If ran
the project is not essential, it will screen -at the source and, whereeveT possible, postpone, its own
be rejected. Andeven if it is es¬
sential they will "asK—Can it be building activities.;
CPA construction
,
v
"(7) It does not apply to the
lected, unless, the proj ect has no minimum work necessary in dis¬
adverse '.impact on the housing asters to prevent more damage to
program, in the way of the labor a" structure and its contents which
have been damaged by flood, fire
-supply or building materials.
"The order does not" forbid con¬ or the like or to the rebuilding or
that
that
are
,
jto be an integral part -of
and in However,
government to cooperate toward
improvement of these tech¬
the
niques.
-/
4
J
1
S:? .r v * 4
fact-gathering aspects of
of Commerce pro¬
gram have received wide business
support and, in fact, have been
designed largely at the request,
and
with the "assistance; of the
business community/- In -working
out the details of its program, the
The
the Department
Department is currently develop¬
ing its policy relating to statistical
subject matter and techniques; In
developing policy and program,
the various bureaus' and offices of
tures
for
used
which
are
stands
being
repairing of a
house or farm
building when the reconstruction
costs no more than $6,000 and is
started within 60 days of the dis¬
aster.,'
,.
not
have
intended,
maximum usefulness to industry;
been
business and government.
re-
determine
to
struc¬
reerected
temporary purposes only are,
exempt from; the order.". '
p "No person may sell or deliver
materials which he knows or has
to believe will be used in
ALLOWANCE
v
EXEMPTIONS
"(B) It does not apply to con¬
Applications must
to do
work in excess of these cost al¬
of structures.
be
made for authorization
lowances;
'
"(I) House, including a farm¬
house or other structure; (such as
^
garage)
residential property,
five
on
designed for occupancy by
families or less—$400 a job.
Hotel,
"(II)
house
ing
or
resort,
:
other residential build¬
for occupancy by
than five families—$1,000 a
designed
more
prohibited under this order^ job.;
hor Jnay any person either carry
"(III) Commercial or service
on
or participate < in work pro¬
establishment such as office, store,
hibited by this order.:
garage, theater/ warehouse, radio
.
.
'"Kinds
of
work
that
are "re¬
stricted
by the order are: Con¬
structing, 'repairing, making ad¬
ditions - or alterations, improving
or
converting structures or in¬
stalling or relocating fixtures or
a
comes
(with
the
exception
after the paragraph
be
mentioned
(VI)
the cost of the
on
struction job
above)
entire
estimated
as
con¬
at the
time
of
beginning construction,
including paid labor, value of new
mechanical
equipment,
fixtures
and materials
incorporated in the
structure and contractors' fees;
"If
•
structure is used for
a
than;
one
.the
purpose,
more
to
use
which the greater part of it is put
will
determine, ■ the :" class
into
which it falls.
If
is
structure
a
being converted, the allowance
applicable to it after the conver¬
sion
is
the
for the
job.
maximum
allowance
AUTHORIZATIONS FOR WORK
PROHIBITED
BY'THE
ORDER
X, "A*person who wishes to begin
work which would otherwise be
prohibited
an
this order without
by
authorization may apply for an
authorization, as follows:
*:• "1.
For housing jobs, applica¬
tion
for
made
authorization
form
on
farm "housing
be filed Avitn
should
CPA-4386.
-
be
Non-
applications should
the
office
local
of
-the Federal
tion,
and
.
Housing Administra¬
farm' housing applica1
tions should be filed with the local
.county agricultural conservation
committee.' X <"
> .
,
il2. For non-housing farm jobs,
•
•application/should ■ be^/made
.CPA;- form
.nearest
f
on
with
and Tiled
county "agricultural
a
th$
con¬
servation/committee.
"3. For all other construction or
repair work covered by. tho order,
application should be made
CPA
form
filed
and
on
a
the
with
nearest district construction office
of the Civilian Production Admin-
is iration.
"Action on applications cover¬
ing 'other construction or repair
work' will be taken in the 71 dis¬
•
trict
construction
which
offices
station,
a
job.
"(IV)
tration
least one
house—see
,
T
.v
Proposes
Cutting; Taxes,
Federal Expenditures
A proposal to cut individual in¬
taxes by 10% in 1947 arid at
;
come
the
time to reduce
same
the
1947
(excluding farm¬
above)—$1,000 a
fiscal
year
Representative
Federal
came
Knutson
of
from
Min¬
nesota, ranking Renublican mem-;
ber of the House Ways and Means
Committee, according to Wash¬
ington adv'cCs" to the Associated
Press on March 26.
Mr. Knutson
told the House that
normal
"Farm
establishing for this
Each state will have at
such CPA construction
office in it."
service station—$1,000
gas
is
purpose.
apartment expenditures by $5,000,000,000 in
work
•
it
the Civilian Production Adminis¬
.
reason
if
within these cost allowances must
.
.
or
or
"Computation ;of the cost of
job
deferred?'" IFft can, it will-be ref¬
jof work already begun,
is, work on which materials
to assemble
^
"
tinuance
used
for
.
what seemed to be a
"business,* in universities,
"In computing the cost of a job
a structure covered by the pre¬
ceding paragraph (VI) the cost or
value of equipment (other than
mechanical equ pment)
and the
be¬
at • that date.
It
does not require further authori¬
ing
ministration Is setting up in each
a
garages)—
by the order but not in the above
general classes—$200 a job.
>
are
an
"Administrator Small explained
cities
and
;
be
re¬
that- the Civilian Production Ad¬
tration
x
in
job..
integral part of the structure
were incorporated on the site be¬
or
painting 7 or m. repapering ; or
to
gfeaslng and repairing or install¬
Son^WV /Wyattsaid: 4;oda^: in-ah- ing repair or replacement parts in
nouncing.the issuance by CPA:of existing
equipment,
where no
veterans emergency^hbUsirig pro¬ change is made in the structure
of- the
stations
a
clude
-
not forbid
does
National Housing Expeditor Wil-
Department
are
working mechanical equipment (heating;
'whole. Such projections are Obvi¬ the
ously dependent on assumptions as closely with interested business lighting/ ventilating and plumbing
'to future costs, "selling prices and
equipment) in structures which
groups to the end that our statisti¬
involves the putting up or putting
specific methods of projection.""
cal and economic reports will have!
The projections in the release of
together Of * processed materials,
:nor
NOT
.
It
gency
.
"Chroni-
much
X
without specific governmental au*
thorizatiori, • Civilian * Production
Administration John D. Small and
interpreted as forecasts of- what
"^Structure,' as defined by the
would actually happen. The de¬ order, includes buildings, piers,
velopment of arilytical techniques arenas, stadia X and grandstands,
and methods should be perfected motion picture sets, and
billboards,
and it would be highly desirable
■#egardless. of whether they are', or
for economists and statisticians in a
permanent br ;tempurary:natdret
in
•cle,"XNov. 8,
•1945, p. 2209]
has been the
'subject o f
>
>
fore March 26 and which
gram order No;:,
service
install these items may be exclud¬
ed.
The exclusion may not in¬
WHAT THE ORDER DOES
ington, as follows:
"Beginning today, no new con¬
struction or repairs to existing
structures, \ with certain X. excep¬
tions described beldw, may be Un¬
dertaken in the United • States;
Puerto Rico or the Virgin Islands,
.
ture, including telephone and tel¬
egraph; oil, gas or petroleum re¬
fining ".of
distribution
(except
cost of labor
'.
projections, although based immediately and applies whether struction, repair; alteration or in¬
reasonable or not the materials needed are stallation jobs on which the "cost
rangeof assumptions, werenot in¬ on hand' or are available without does mot * exceed * the allowances
tended nor should they have been priorities assistance.
1 :
.listed below for particular classes
on
:to the press on
the
f.
street
the cost of equipment used
heating, lighting, ventilating
or
providing
sanitary
services
within a building.
"(VII) Other structures covered
Such
o n-
ships, released
[published
that removal
which materials which
projection based on speci-j the structure have been incorpo¬
varying assumptions; to rated into the structure on the site
point to the kinds of problems in-; and ''which is" being carried hri at
volved in the analysis of. cost; the time of issuance of the order,;
orice
and
profit
relationships.
"The prohibition
is- * effective
price and prof-
"
.
quire authorization for the com¬
pletion of construction jobs on
Vet¬
fic- and
dealing
try
official forecasts of
-
firmly to the
Housing Program, Order 1,
dated March 26, was reported by
the Associated Press from Wash¬
ed as a
auto¬
indus¬
mobile
as
issued the
with -the ?
costs, prices, or profits for the au¬
tomobile industry or for industry
as a whole. The study was intend¬
partment:
|r:.n The report
on
.
.
structure
or
"(1)
erans'
."It is
part of it, or
a
/would injure the item.
might have been made available.
The essential portions' of the
text" of the! order, known as
as
C. Attached so'
a
hoped that a wider use of mate¬
rials f for
civilian
construction
or
or
$15,000
Administratoi <S>
John D. Small and National Hous¬ i: A. Attached to the land or ' >
B. Attached to a structure and
ing Expeditor Wilson W, Wyatt.
emphasize this point.
much noise that his words were lost.
CPA
by
carrier
terminal; rail¬
railway building;
research laboratory;
pilot plant;
motion picture set; utility struc¬
road
used
their
Germans
airport
CPA fcr Building Curbs
A Government order, issued on Mar. 26' by the Civilian Production
Administration, controlling the use of building materials in order
that during the shortage period the largest amount available may be
^
in
•
1839
total
v
^
and
a
surtax
10% cut in
rates
$1,400,000,000 next
"This."
■
the
said
job. -vy-v
•r"(V) Church, hospital, school,
public building,- charitable insti¬
tution—$1,000 a job. •
"
(VI), Factory,. plant or- other
Press,
"pdded
deficit
shown
industrial structure used for man¬
duction
to the
in
would
year.
Associated
anticipated
the
budget for
year
ending June 30,
*3 600,000.000, will just
about offset the $5,000,000,000 re¬
the
fiscal
1947,
o<
in
expenditures
upon
products' Or equipment if these
ufacturing, processing or assem¬ ..which th^ tax relief proposed to
bling; logging and lumber camp; ,-be granted is conditioned," he
items are:
pier,
;•
v
structure for
a
commercial
said.
THE COMMERCIAL & FINANCIAL CHRONICLE
1840
thorities
The Financial Situation
(Continued from first page)
inevitably combine to deter¬
mine prices—or at any rate
"graphs," or "curves" which
"prove" to a nicety and quite
"conclusively" whatever it is
authorities wish
the
that
would point out
to
the fallacies
imbedded in these demonstra¬
all some¬
gullible minds
of these skillfully
tions, must first of
from
how
erase
the
effect
drawn
based
pictures
which
data
upon
official
is
fond of
parad¬
ing before the public.
The
strange part of all this is that
the man in the street is fully
convinced that price control
today is not effective, and yet
more often than not loudly
always had upon these things;
engaged in supporting it and
not one word about govern¬
demanding a continuation of
mental policies which have
it. He can hardly believe that
in the past needlessly
"in¬ the situation would be cured
flated" the money supply, and
by adding further to that
which are apparently to be
army of enforcing staff now
continued
with
similar ef¬
spying around the country!
fect; not one word about those
Such is the result of care¬
breaches
and
which
effect
the
Those who
demonstrate.
are so
the line of
in
has
war
con¬
-is
less
playing with words—or
therefore
(to
the layman) trol which have already been should we say crafty misuse
made, and which must in the of words?
quite indisputable.
course
of time be; reflected
They must likewise often
throughout the economy—
employ every day experiences
-
.
with
quite
ures
found
black
course,
these
as
"unofficial" fig¬
not
are
for the
politician.
markets
which,
of fg These underlying develop¬
ments
which tend to push
official figures never
in
the
so-called
what used to be
"inflation," ' and what
(
NYSE Short Interest
Reported
The New York Stock
Exchange
control all the malad¬
true sense, so we
tical
propaganda—i. e. make
use of reasoning which inevi¬
tably tends t.o be difficult, in¬
volved, or too exacting for
popular consumption.
Were
it not for
these
flation is not
this
moment
vanced.
If
believe—in¬
only present at
but
this
is
far
is The
ad¬
true
state of affairs—and who
question does
prevent¬
ing inflation already existing
gains such currency probably
from having its natural effect
could not make a great deal
in the
economic
structure.
of headway even though en¬
Nothing the authorities or the
joying the advantage of the
legislatures can do is likely
."sounding board" afforded by
to prevent such causes from
a
Congressional hearing.
If
it were possible to stop the producing normal effects at
of
the
nonsense
which
flood of words about
not have to do with
now
one
"infla¬
tion"—meaning merely high¬
prices—long enough to in¬
quire calmly and intelligently
why higher prices have arrived
and why still higher prices
may be expected in the fufuture; if it were possible to
•make use of this eminently
sensible approach to current
questions it would be quite
•impossible, one must suppose,
form
our
er
for discussions to be
so com¬
time
or
or
another
another.
or
in
one
Obviously,
task is to do what
can
be
these
underlying
causes
already developed within the
^
economy—or at the very least
take steps which will insure
that
er
they will not attain great¬
proportions in the future.
But such'a
dealing
than
course
with
with
would be
causes
effects or
rather
symp¬
the last
pletely monopolized by
toms—and that is
groups or elements gin the
thing the politician is likely
population which say they
to think of!
'
5
have and which probably be¬
lieve $ they
Controlling Effects
.T
have nostrums
At any rate, since "infla¬
which would or will keep
prices within limits chosen by tion" in the scare-head propa¬
them.
1
ganda in support of further
price control refers to the
Effects and Their Causes
every day, effect of .underly¬
It requires but a moment's
ing conditions, and in the
thought to realize that the popular mind has no connota¬
proponents of price control tion respecting the governing
have nothing to offer which
causes, the pressure of public
has any bearing upon the
opinion is normally found to
cause of
higher prices or the be directed at such effects—
danger of higher prices. All and all too often in support of
they can do is in effect to sug¬ ways and means of control¬
gest that "directives" be is¬ ling or eliminating these ef¬
sued to the public at large
fects, ways and means which
forbidding it to permit natur¬ have not a ghost of a chance
•
al economic forces to operate,
of
proving lastingly effective.
and to insist that individuals Of course,
they are not prov¬
and business enterprises ' be ing effective now as
every
severely punished if they act housewife finds every day of
as normal human beings have
her life, and. as every retail
ail ways acted. Not one word buyer knows from his
daily
about
of
war
the
inevitable effect
nearly all the
which normally and
upon
elements
1,015,772 shares, compared with
1,181,222 shares on Feb. 15, 1946,
both totals excluding short posi¬
the
odd-lot
ac¬
counts of all odd-lot
dealers.
As
tions
carried
in
million
36 accounts out of each
in
1,000
of
$5,000 as com¬
pared with 19 in the fall of 1941.
of
excess
war.
The number of accounts
than
more
$5,000 increased by
152%, while the number less than
this
amount
increased
by only
31%. The greatest relative
in¬
occurred in the number of
crease
accounts with balances of between
1946 settlement
the
which
182%.
812
and
$5,000
date, the total short interest in all
odd-lot dealers' accounts was 48,-
March 15,
of the
shares, compared with 73,359
shares on Feb. 15, 1946.
Exchange's report added: v.
The
Of the
1,277 individual stock is¬
on
the' Exchange on
listed
March 15, 1946, there were 62 is¬
sues in which a short interest of
5,000 or more shares existed, or
in which a change 'in the short
position of 2,000 or more shares
occurred during the month. ; :
4 The following table
us
compiled by
shows the amount of short in¬
terest during the past year:
1945—
1
.
,
,
»-—_l,520,384
Mar. 15
—
1,361,495
>1,486,504
June 15—--
—1,554,069
Apr. 13—
May 15„
:
—
e.
insured
69
At the close of the
Oct.
15„—
Nov.
15
Dec.
15
•
As
result,
a
from
0.83%
./.v.'
■
income
of the
to
Corpora¬
tion during the last six months of
1945 amounted to $60
million, in¬
cluding
ments
$49 million from assess¬
paid by insured banks at
annual rate
an
of one-twelfth of
1 % of their average
$11
million
from
deposits, ancl
and
the
return
on
the
—1,420,574
degree of Aug. 14_———.1,305,780
inflation already existing Sept. 14
1,327,109
—i,
million.
to 92
in
accounts
increased from
banks
:
,i
the
July 13——
done to reduce the
of
decreased
0.60%.
poration
sues
fortunate circumstances much
has
"Total
"During the 4-year period the
number
doubled,
plus to deposits in insured banks
in part:
says
than
$5,000 maximum coverage reflects
the changes in the size distribu¬
tion of deposit accounts during
on
settlement date, as
can
and most vital
the ratio of FDIC capital and sur¬
the March 15, 1946,
lowing:
well doubt it?—then the first
un¬
more
reported, insured banks held
total deposits amounting to $70
billion
of which $28 'billion or
39% were covered," Mr. Harl also
no
today if real progress is to
be made in any effort to com¬
or
latest date for which similar data
were
protected by the provision for a
compiled from
information obtained by the New
York
Stock Exchange from
its
members and member firms, was
bat
mutual
The short interest as of the close
of business
infrequently must apply keen
analysis and hard common- justments which such cause
sense
to masses of data to brings—both in the form of
break the "case" of those who price changes and otherwise.
Of course, in this sense—the
have employed modern statis¬
and
investments
on
should be termed "inflation"
per se to be so convincing to
the lay mind. They, too, not
on Oct. 10, 1945, 13 481 in¬
savings banks held total deposits
amounting to
$141
billion.
Of<£-—
—_——
—.
these deposits $66 billion or 46% ital account of the
Corporation.
were covered by the provision of
Deposits rose to three times the
a
$5,000 maximum for each' de¬ 1938 level, while total capital' ac¬
positor; On Sept. 24,
1941, the count of the Corporation a little
commercial
This increase in the proportion of
accounts which would not be fully
public
tical treatment which
seems
"This survey," he says, "showed that
sured
March 20 the fol¬
made
prices
up are
Reports
proportion of total deposits is now covered by the $5 000
maximum insurance for
each depositor than in the
prewar period
FDIC Chairman Maple T. Harl announced on March 25 in summar¬
izing the recent survey of accounts in insured banks.
V„
were
reflect, and which do not lend
themselves to the mass statis¬
called
Than in Prewar, FDIC Chairman
A larger
war
to March 15
Thursday, April 4, 1946
—1,404,483
1,566,015
——-1,465,798
—
-
1946—
—1,270,098
15——1,181,222
Mar.
1,015,772
Jan.
15.—
Feb.;
$10,000
."While most of
amount
the
rose
change in
distribution
and
of
accounts occurred in banks which
were
insured
on
Sept. 24, 1941, a
part of the change resulted from
the admission to insurance of 140
mutual
savings banks during the
years. About onethird of the increase in the num¬
following four
ber
of
insured
in
deposits, and
one-eighth of the increase in the
total amount of
the
from
deposits, resulted
admission
of
these
banks.
Deposits in mutual sav¬
ings banks, like time and savings
deposits in commercial banks, are
about 90 % covered by the $5,000
maximum,
"Various' factors
have
influ¬
enced the distribution of the war¬
of
increase
bank
deposits
Wage earners,
farmers, and srnall retailers ac¬
cumulated larger balances as a
result of the sharp increase in
their
incomes
accompanied
by
depositors.
among
of
shortages
and
other
consumers'- goods
( restrictions
Porter Discusses
Possible Price Rises
on
pices
of
March 22 under the aus¬
the
Committee
of
One
Thousand of the Union for Demo¬
Total assets of the Federal De-
posit
amounted
discussed the like¬
Dec.
31',
lihood of a slight acceleration in
speaking
the increase of prices as a result
cratic Action,
of the Administration's new wage-
price policy
and
OPA's ' '•'deter-'
mination to remove all price im¬
pediments to production," but de¬
clared that the level of rents and
price averages as well as va¬
rious
other. living
costs
will
food
.
scarcely be affected.
"In the ma¬
rectors
Corporation
million ' on
1945, Chairman Harl,
for the Board of Di¬
Insurance
to
$931
the
of
Federal
Deposit
Insurance, Corporation announced
in releasing the semi-annual fis¬
cal statement on Feb. 25.
The
Corporation held almost $900 mil¬
lion
ment
the
made
was
for
six
months
the Cor¬
disbursement to
a
upon
protect depositors in weak
solvent banks.
in¬
or
Total expenses for
period amounted to $2 mil¬
leaving net income trans¬
to surplus of $58 million.
Another $3 million was added to
suiplus as a result of adjustments
lion,
ferred
in
the
for
reserves
losses
on
as¬
sets
previously acquired through
bank
suspensions and mergers.
Recent
liquidation
experience
these
with
favorable
has
assets
the
and
has
loss
been
very
Corporation's
smaller
been
than
was
Total
anticipated.
capital and
surplus on Dec. 31, 1945, amount¬
ed to $929 million."
\
'/
The figures for Dec. 30, 1944
to in
referred
were
of
issue
our
April 30, 1945, page 1926.
of
United
States
ABA
Regional Savings
and Mtge. Conference
;
Goyern-
obligations and $16 million
Assets acquired through
Invitations
March 26 to
in
.
were
more
,
mailed
on
than 3,000 banks
states to attend the Mid-
seven
Western
Regional Savings ; and
Mortgage Conference sponsored
by the Savings Division with the
cooperation of the department of
Research in Mortgage and Real
of
Finance
Estate
the
Bankers Association.
Des
at
American
The confer¬
will be held May 27 and 28
ence
and
Iowa,
Moines,
the
Hotel Ft. Des Moines will be con¬
ference
upon
spending imposed by the war.
Many accounts which before the
war
were
under $5,000 grew to
exceed that ; amount.
Other ac¬
counts in excess of $5,000 in 1941
increased to still greater size. In
contrast, however, partially as a
Paul A. Porter, chief of the Of¬
consequence of purchases of U. S.
fice
of
Price
Administration, Government •( obligations, some
speaking at a lupcheon in New large accounts declined in size."
Ybrk
During
call
accounts, one-fifth of the
increase
time
income.
miscellaneous
headquarters.
Bankers of Iowa,
Missouri, Min¬
nesota, North and South Dakota,
Kansas, and Nebraska have been
invited to participate in the con¬
ference by Myron F. Converse,
President of the A.B.A. Savings
Division, who is also President of
the Worcester Five Cents
Savings
Bank, Worcester, Mass.
In a letter to the bankers, Mr.
Converse says:
(
"Included
be
will
Dr.
,.
■
among the speakers
Melchior Palyi, na¬
tionally recognized economist, for¬
merly of the University of Chi¬
cago, and Dr. Ernest M. Fisher,
Professor of Urban Land Econom¬
Columbia
University, New
present intention
to keynote 'merchandising meth¬
ods'
on
both
days.
However,
changes occur so fast, our officers
ics,
It is
York.
have
our
decided
cision
gram
so
to
defer
final
de¬
the balance of the pro¬
on
of cash.
that when we meet
we
suspensions and mergers and shall have the most authoritative
Corporation rep¬
speakers available to discuss sub¬
resented
disbursements
of $38
jects which are most timely."
of Commerce," prospective earn¬
million. These were carried at a
The first day of the conference
ings are so well above prewar
value of $15 million after the de¬ will be devoted to a
discussion of
levels that reasonable wage in¬
duction of a reserve for loss of the
savings business, and the sec¬
creases can be negotiated without
$23
million, according to
the ond day will deal exclusively with
raising prices."
1
v : r
statement, which says:
mortgage lending problems.
The
jority of American industries," he
added, according to the "Journal
bank
still held by the
.
Mr.
Porter
readily
admitted
that some prices among consum¬
ers' metal durable goods would
"At the
deposits
close of the year total
in
the
13,495
insured
experience an increase under the Commercial and mutual savings
new
wage-price policy.
He de¬ banks amounted to approximately
clared, "Where these price in¬ $154 billion. This was an increase
creases
are
necessary, they will of $19 billion over the $135 bil¬
be made promptly, not only to lion at the end of 1944 ,and was
business transactions—this de¬ speed production by removing the highest amount on record.
business
hardships, but also to Since December 1938 deposits in
spite all the production and minimize withholding of goods insured banks have increased
price statistics \yhich the au¬ while prices are being adjusted.';' more rapidly,than the total cap-.
two-day meeting will be
sleeve
working
entertainment
connected
with
shirt
and
usually
a
conference,
features
conventions
will
be omitted.
Mr.
Converse urges bankers to
communicate
directly with Ed
Maher, Manager of the Hotel Ft.
Des Moines, to arrange for hotel
reservations, as accommodations
are
limited.
•Volume
Number 4478
163
THE COMMERCIAL & FINANCIAL CHRONICLE
Industrial Activity in February Reported fey A House Passes Farm
Gredit Merger Bill
# - Federal Reserve Board
^
-
"Production and employment at factories declined in February
but advanced'in the first three weeks of March, reflecting mainly the
influence of the steel strike," it is indicated in the summary of gen¬
eral
business
and financial conditions in the United States, based
statistics for February and the first half of March made avail¬
March 23 by the Board of Governors of the Federal Reserve
System, According to the Boards
upon
able
on
"the value of retail trade reached
record levels" and it reports
"wholesale prices of a num¬
new
that
ber of commodities increased."
'
The Board further reported:
,
of
number
same
loaded
in
the
,cars
being
were
first two
weeks
of
March
as during the same period
last year, when shipments of war
products
at peak
were
levels.
*
"Output
of
durable
goods de¬
further
in
clined
considerably
February, while production
non-durable
of
goods
and minerals
continued to increase. Production
of
steel, automobiles, and machin¬
has advanced sharply since
ery
the
settlement
in
these
Board's
of
disputes
wage
industries,
index
and
the
industrial
of
pro¬
duction, which declined from 160
in January to 154% of the 1935-39
'average in February, will show a
considerable rise in March.
"Steel
mill
operations
at
in Feb¬
rate of
19% of capacity as compared with
50% in January. Output at steel
ruary were
mills has
"The general level of wholesale
commodity
advanced 1%
of February to
March, reflecting
increases in most groups of agri¬
cultural and industrial products.
Since last September wholesale
prices have advanced 3.3%, ac¬
cording to the Bureau of Labor
from
the
the
Statictics'
increased rapidly since
February, and dur¬
ing the week ending March 23 is
of
regulations permit manufacturers
and distributors to pass on to con¬
only part
advances
granted
wholesale prices.
of the recent
in maximum
sumers
.
Bank Credit
:.'
v
^"Retirement of $2.8 billions of
United States Government obliga¬
tions during March was reflected
in
decline
a
of
the
about
same
scheduled
amount in Treasury
the
ing the four weeks ending March
20.
Holdings of Government se¬
In
at 89% of capacity—
highest rate since V-J Day.
February production of non-
ferrous metals,w machinery, and
transportation equipment also de¬
curities
clined, reflecting chiefly the di¬
,
clined,
rect
indirect
or
effects
of
work
stoppages.
Lumber
production,
after
advancing
in
January,
showed little change in February.
Plate
glass
production increased
sharply to the highest level since
November, 1941.
"Production
able
in
most
non-dur¬
to
advance
February, partly reflecting in¬
in working forces.
Output
textile milte rose further and
creases
at
iat
was
level
the
rate
a
of
slightly above the
a
year ago.;' Activity in
packing industry in¬
sharply in February fol¬
meat
creased
lowing settlement of the
dis¬
wage
pute at major plants and was 20%
higher than : a year ago.
Flour
production likewise showed a sub¬
stantial gain for the month.
In
March
a
stituted
Federal program was in¬
to
reduce
domestic
sumption of wheat in o»*der
record.
1
,
"Outout of coal
maintained
was
at
exceptionally high levels in
February and early March. Crude
petroleum production showed a
gain in February, but declined in
March.
\
Employment
>•
•
v
1, /
;
to
ad¬
from the middle of
January
to the middle of
February in most
lines of activity except at
manu¬
facturing plants closed by indus¬
trial disputes.
period.
After
Feb.* 15, with
the settlement of the steel
strike,
were large increases in
em-
on
them
somewhat
non-agricultural establishments is
estimated to be about 2M> million
larger than last September, after
allowing for
seasonal
changes.
Unemployment^ increased from
January to February bv about
level
persons. ■'' •'
of
2,700,000
V
'/•
■
1, ':y
■
"• r'
Distribution
changes,
record
on
margin,
March
and
sales
the
were
by
a
in
the
continued
marked increases
largest
considerable
first
over a
half
to
of
show
year ago.
Total retail trade in
February was
probably close to one-fourth high¬
er
than
in
the
same
month
last
year.
tween the middle of
the
middle
and
Loans
on
consider¬
slow decline."
a
The
appointment of David Ford,
for the past eight years Assistant
Loan
the
Federal
Home
Bank
System at Washing¬
ton, D. C., as President of the
Council of Insured Savings Asso¬
announced
E.
New
of
York
State
was
March 24 by Arthur
on
Knapp, Board Chairman of the
Mr.
Council.
F.
Ford succeeds
Carl
Distelhorst, whose resignation
managing-director of the
to become
Mr.
Ford
will
1, said
Mr. Knapp. Previous to his
ice "with the Federal Home
Bank
System, Mr.
Ford
for
was
would be
Mr.
hands
of
cabinet
a
member
it
could be used for political advan¬
tage.
'
1
'
•
'
'
*
The
measure,:.,which has been
on to the Senate, was
opposed
Representative
Cooley
(D.-
sent
by
N.
C.)r another Agricultural Commember, who contended
mittee
that it would not accomplish abo¬
lition of any of the many present
Federal agricultural credit agen¬
cies.
From the Associated Press
we
quote:
"The House approved an amend¬
.
ment
by
Representative;; Taber
(Rep., N. Y.) requiring one head
-.
in each
county
counties
combination of
or
all local offices of
over
Federal credit agencies.
He said
this would promote
efficiency and
economy in farm
'
lending,
;
,
"Under the legislation the seven-
man
Federal
Bank of New York.
Home
Loan
He served
as
President of the New Jersey Sav¬
ings and Loan League in 1936 arid
"yyyy.y
:/•".
':y
The Council of Insured
tablishment of
coal produced and to be adminis¬
tered by the union. The operators
balked. Mr. Lewis refused to dis¬
cuss other major issues of
wages
and hours
until
the welfare
question is settled.
industry,
in
agreement
which
the
had
rangements
to
and
agricultural
from
different
for
areas
12-year
terms. An Agricultural Credit Ad
ministrator at $10,000 annual sal¬
ary would be, appointed by; the
v
Board.".
'•
r
Mr.
said
ar¬
Mr.
keep the pits in condition
Schwellenbach asserted
he had assurance from Mr. Lewis
that-f utilities dependent
fund
when
Mr.
royalty
for
on
this
came
up
Lewis
a
ago
Operators
SenateComittee Adds
To Harbors Fund
The
Sena t
Committee
the
to
amount
ap¬
for the year
beginning July 1. The
bill, allowing $359,000,000,
includes
appropriations
for specific projects not in the
which,
measure,
if
breakdown
given
Associated Press in
/
harbors —Cape
*
Vincent
v
a
anthra- steps to save on the use of wheat
unaffected.. I°r alcohol, for flour and for feed-
were
'
.
•
_
j
_
1
;
Soft Coal Stocks Frozen
Two orders designed to provide
reserve
of bituminous coal for
"desperately in need of
were issued March 28
by Solid Fuels Administrator J. A i
consumers
this
Harbor,
.
Krug.
ers
dividend checks in payment ol
at
Dec.
$241,224,000..
31,
-
on
dividend, represent¬
first
quar¬
payment
Oct 1, 1904, a year and a hah
after
it
opened
March 30, 1903.
business
for
on
This currenfdivof 45
cents
?
share for the quarter, in compari¬
son
with the 35-cent rate that ha
1945
been,
^
last few years'.
-
dividend
paid
quarterly
■
-.
during
-i
t
w»
^
rile
f
*c
j
o
colh
v
4"
short
of the goal.
The problem
closing up thaj; gap therefore
comes
right down to our jown
of
.
homes and
our
own
tables." y
Ay
Mr.
Davis y explained that the
United States and Canada have to
one
order
operators of bitu¬
the world
every other great surplus-produc¬
ing
region y had
been
hit
by
drought, while in this country and
in Canada production was ranging
even
above
that of prewar years.
On March
26, after
a
meeting of
the Famine Committee. Mr. Davis,
in
Washington,
according to the
Press, told reporters
Associated
that it had been decided that food
rationing in this
country
time would be of
no
hoid
29.
further
of
coal1
the
The
directed
so
directed
were
track"
"on
coal
beginning
March
April 2 mailed to its stockhold¬
its
nvm*
producing districts
Pays 170th Biv.
unbroken record of
imnf
fuel,"
mine
on
an
1
minous coal mines in all but two
Bankers Trust Co. of New York
ing
starvation-threatened areas
°f the world.
In .reporting Mr.
Davis statements, the New York
"Times" quoted him as saying:, i:
"The
Government
is
taking
meet the largest part of
xo
its 170th cash
of
need for food due to the face that
In
I
miners
-
.
and
Bankers Trust Go. of
H. Y,
i
bushels
.
with the Progressives.
by the
r'/
N. Y., $59,000.
cases
where
dissatisfied. :
225,000,000
for exportation,by July ;1
less a hew contract is then reached
for
Rivers
in
are
were
observing
"Mitchell
Day," were to remain in the pits,
although their leaders have said
they will be idle on April 30 un¬
'
.
collected
also
Corps arid other Miscel¬
Committee:
funds
about 17,000 members of the Pro¬
gressive Mine Workers Union who
of the Quar¬
Among projects added
Senate
Provide
for
animals/'^Mr. Davis said. "But
the
$2,400,000
administer
j.
control, $10,000,000 for the
Canal,
urged/that th^use of bread,
flour _and pastry be reduced to
by
-
care
Their contract may be terminated
j' ing
June 1.
Also in Illinois, where giving full allowance for the re¬
U. M. W. officials figured 25,000 sults of all those savings, we still
of its members were to be idle, will be many millions of bushels
its 'Washing-
cemeterial expenses
study
the industry of
fund to
a
hardships resulting from mine ac- | wheat
cidents, and also suggested the ! to the
cite
dispatch of March .18, shows
that; the"; measure* carries $330,for
000,000
river,
harbors
and
flood
W. and
Mr.
Pennsylvania'sj! 75,000
tori
Panama
the U. M.
to
welfare
a
joint
C. Davta Chairman of
ftatirins^ Famine Emergency
Committee, in a radio appeal to
fte American peopje--on,;.March-,
hour.;
an
reply
for
a
plans to create
also
by
demand
proposed
efit
purposes
U. M. W. locals
be completed. An approx¬
can
Lewis's
fund,
union
quire House approval before the
bill
operators,' in
about 18Vz cents
from miners for medical and ben-
passed by the Senate, would re¬
imate
or
The
proved by the House for rivers,
harbors, flood control and other
War Department civil functions
Reduce Food Use
S6,aoU
tries,
Appropriations
approximately
e
added
$70,000,000
A||
at
12:01
a.
at
operators
not
to
ship
accumulated
tht
m.
wen
any
afte
12:01 a. m., March 31, except by
permission of the Solid Fuels Ad¬
idend is at the rate
resources
utilities,
power
Davis Asks Public to
industry ,offered to raise
miners' pay in line with the wage
taled $128,214,000.
members.
electric,
supplies of coal in
storage to permit operation for a
reasonable length of time.
•
mated this would have netted him,
the basis of last year's produc¬
ators limiting deliveries of coal to
certain types of consumers.
This
as
to
on
made
associations
••■'■A.- y.i.
provision is made for ship¬
have sufficient
esti¬
and tidewater and lake dock oper¬
savings
dealers
operators, deliveries will
coke' ovens, except
those which produce gas, or rail¬
roads. These consumers are said to
10-cent
a
terly dividends since the company
time, the Council has 38 insured
retail
to
by-product
wel¬
a
year
asked
No
ments
tion, approximately $57,500,000.
.
;
order
days'supply.■
coal
on
each ton of coal mined
purpose.
the
The
was
At the present
In
completed
fare
others, appointed
President
of America.
ers
and dock
following categories: (a) To gas
plants having less than 10 days'
supply; (b) to hospitals having
less than 10 days'
supply; (c) to
industrial consumers having less
than 5 days' supply, and (d) to
householders having less than 10
riculture and six
the
mine tracks where the
expects to be in operation
April 1. This would apply
to nonunion mines, which are few,
and
to
mines having
contracts
with the Progressive Mine Work¬
on
mine
previously for union maintenance
men
have
be permitted to consumers in the
areas
been
Administration
authority to modify
directions covering the coal
held
Schwellenbach said,
'0 Reports from coal
Fuels
rubber
strike,
a
be
achieved
he
without
can
as
given
the
fund
Mr. Fuller also is
in
far
after
would be provided for.
The union's demand for
by
Solid
:
conciliator
as
been
Secretary of Labor Schwellen¬
bach; who on March 30 gave up
hope of 'averting the walkout,
namfed ; Paul; Fuller
of
Akron,
Ohio, as a special mediator to
represent him.
institute
conserva¬
possible.
The orders do not apply to coal
produced in Michigan where the
tonnage is small, or to mines lo¬
cated in District No.
16, Northern
Colorado, which produce coal not
readily lending itself to storage.
Area distribution managers of the
health and wel¬
a
fuels to
that stocks of coal
so
stretched
no
Savings
organized
in
1943 with a membership
of 25
savings
associations
throughout
the State of New York, : whose
savings accounts are insured by
the
Federal
Savings and Loan
Insurance Corporation. Combined
resources |of
the group then to¬
Associations
tion
John L. Lewis,
governing board would be
composed of the Secretary of Ag¬
member of the Board of Direc¬
tors/of the
felt
not
was
the announcement,
Krug urged con¬
solid
of
immediately strict fuel
Lewis's
special
a
a
therefore
making
sumers
President of the
twelve
years managing officer of
savings association at Atlantic
City.
From 1932 to 1937 he was
In
Administrator
fare fund for miners, to be created
from an assessment on each ton of
serv¬
Loan
strike
until the next day.
as¬
assume
duties about May
earliest presi¬
and to commemorate the
48th
anniversary of the eighthour day. • Actually, the effects of
dents,
the
Press
laneous items,
savings and Loan Insti¬
Chicago was recently an¬
of the union's
one
serted, according to the Associated
Washington report, that as
long as farm credit was in the
present system, Mr. Flanagan
termaster
new
seven-
up
union, said there
picketing.
principal demand
from the coal industry is the es¬
tute
at
a
independent
board.
The
plan was likened by Chairman
Flanagan (D.-Va.) of the House
Agricultural Committee to the in¬
dependent status of the Federal
Reserve
System.
Decrying the
American
Their
almost
the
under
man
House
insured Savings Assns,
of
consolidated
jurisdiction of
Agriculture
of
Committee's
Ford Heads Council of
Governor
and
February and
March.
fluctuated
dealers
amounted to
and
of
ably in connection with the Treas¬
ury retirement arid refunding opertions, while those to others con¬
middle
March
A industrial
Government securities to, brokers
"Shipments of most classes of
freight increased from
the middle of
February to the
railroad
of
and
Department
following
loans at member banks in leading
cities continued to increase be¬
1937..
"Department store sales in Feb¬
after allowance for sea¬
ruary,
sonal
the
AAAyy
"Commercial
his
a
in
week.Ay
nounced.
to
in¬
borrowings at the
over $700 mil¬
March 13, but reduced
lions
plovment in the durable goods in¬
dustries
ana
by the middle of
March
employment
in' private
400,000
banks
their
there
•
Member
Reserve Banks to
ciations
"Employment continued
vance
the
to in¬
exports for relief purposes;
Output
of
automobile
tires
in
February rose to the highest rate
crease
on
de¬
reductions
in
Treasury
deposits
at
these
banks. Deposits, other than those
of the Treasury, at member banks
showed
little " change.
Member
banks
required and excess re¬
serves
also changed little during
tinued to show
con
banks
member
accompanying
creased
of
goods continued
balances dur¬
by both Federal Reserve
Banks .and
passed by the
80, on March 19,
which would create an Agricul¬
tural Credit Agency, all Federal
farm
credit
agencies would be
the
stoppage by the nation's 400,000 soft coal miners, back¬
the traditional "no contract, no work" policy of the United
Mine Workers of America (AFL), began at
midnignt on March 31,
according to an Associated Press dispatch, which further adds:
The beginning
of the work stoppage found members of the
union ready for a holiday
anyway—their annual celebration of
April 1 in honor of John Mitchell,<S>-
ing
to
removed from the
Stoppage by Soft Goal Miners Begun
A work
bin
a
House, 239
control
Price
index.
an average
the middle of
prices
middle
middle
Under
Work
1841
■
The
second
ordej
directed to retail coal dealers
order
a.
m.,
became
v
effective
at
12:01
April 1.
The
of the
are
necessitated because
brought about
by the termination of the contract
ers
emergency
the United Mine Work¬
and the bituminous
ducers at
need
to
was
send wheat
and fats
abroad
by July and that he be¬
lieved voluntary measures would
accomplish the purpose, he added:
"It will take four months to get
new
ration books printed and ra¬
tioning
There is
tioning
gency."
machinery reestablished.
no use talking about ra¬
for
the;, present
-.vy ■"
■
emer¬
Ay.'-..-'A:
Mr. Davis indicated that he did
orders, Administrator Krug
declared,
between
tilti
ministration.
was
at this
help in pro¬
viding supplies for the hunger
areas.
Saying that the immediate
coal
pro¬
mitungui on iviarcu oi.
not
intend
to
imply
that..there
might or might not be rationing
here later, as that would be de¬
termined by subsequent events,
such as crop production both in
the United States and other eoun-
—•—
n
■///:''.> /:■/
V.:
THE
18"42
$568,440,375 .to $606,-
915,423..- /;//://:;//5
■/..,•
Atomic Control
'/ ///•'
elect¬
Vice-President of Bankers
Roger F. Murray has been
Items About
Banks,
ed, a.
antes
profits
vided
of condition of
Trust Co. of New
statement
The
'include United States
$2,401,433,547.
figures compare with de¬
These
are
on
(par
shares
Government
of $427,751,906.
War Loan deposits
Resources
$11,4*38,497
were
against $10,050,615 at the end of
December.
The
indicated
net
;York%s of March 31, 1946, shows
earnings
deposits of $2,259,623,221 which
the bank's 2,500,000
$10) amounted to
$1.02 per share for the first quar¬
ter of 1946 as compared with $0.70
per
share
a year
ago.
of $2,693,1.84,469 shown on
1945. On March 31, 1945,
respective figures were $1,-
Dec. 31,
released
and
v
statement
The
of
condition
of
National Bank & Trust,
Company
of New York > as of
845,2)7,647
and
$1,957,824,482. March 31, 1946 shows deposits of;
United States Government' War $149,879,318
and
resources
at
Loan' deposits on Dec. 31, 1945, $165,708,494.
These figures com-;
were""'$477,891,759 and on March pare with deposits of $167,417,603;
31, 1945, they were $188,142,748. and resources' of $174,725,392 on
CashTahd due from banks is listed Dec. 31, 1945, and deposits of
on March 31, 1946,. at $366,135,931
$115,661,803
and
resources
of
as against $609,972,505
shown oh $131,960,321 on March 31, -1945.;
Dec:" ;3l, 1945,
and $378,712,247 The bank reports a record high in
shownT.a year ago.
United States loans and discounts at $39,461,526^
GoVerifment • securities : stand at as compared with $37,159,415 three,
$1,417;231,943; three months ago months ago, and $27,388,324 a year; come, and home modernization;
they were $1,507,987,636 and one ago.
Cash and due from banks is, loans with repayment terms as
'year tfgo they were $1,149,132,013. listed at $28,966,949, which com-.' long as 36 months.
This service
Loans; bills purchased and bank¬ pares with $37,696,231 at the end is offered in all Bankers- Trust Co.
ers' acceptances are now $527,of last year, and $26,925,619 at the offices.
•/;
;,///,:
:
435,424 which compare with $480,- end of the first quarter of 1945. / The 57th St. and Madison Ave.
U. S. Government: securities are! office of Bankers Trust Co.
489,936 on Dec. 31, J945, and $340,of
326,892 on March 31 last ; year.; shown at. $94,425,302, as against New- York marked its 25th anni¬
Capital funds as of March 31,1946, $97,484,365 at the end of the year, versary on March 28 in newly re¬
are shown as: capital $41,250,000',
and
$75,471,896 twelve months modeled banking premises which
surplus $41,250,000 and Undivided ago.' Capital funds reach a new now provide twice as many tell¬
profits $31,893,451. Net operating all-time high in the bank's his-; ers, according to an announcement
earnings for the three months tory, totaling $6,521,206; Of this made by R. B. Foote, Vice-Presi¬
;' ending
March 31,- 1946,
after total, capital remains unchanged dent in charge of the office. When
amortization, taxes, etc., were $2,- at $1,500,000; surplus increases to Bankers Trust Co. opened this of¬
493,589 or $1.21 a share, based oh $4,500,000; and undivided profits fice on March 30, 1921, the section
2,062,500
shares - outstanding, total $521,206. As of Dec. 31,1945; was largely residential. With the
which/compares with $2,057,490 pr capital funds aggregated $5,505,uptown surge of business, the lo¬
$1.25 *a share based on 1,649,922 354, with surplus at $3,500,000 and cation has become the center of
shares5- outstanding for * the three undivided profits at $505,354, and the: active midtown
shopping dis4
7 months ending March 31, 1945. at March 31, 1945, these figures trict/ It is to meet the increasing
the
a
York, in charge
Development Authority under the UNO, with international control
Security Re¬ of
uranium, the element essential to the manufacture of atomic bombs,
search
Department,- it was an¬ as the alternative to the destruction of mankind by atomic war-*
nounced on March 29 by S. Sloan
fare. Under the proposed program control of the mining of uraniuni
Colt, President of the bank.
Mr. wouid be exercised, as well as ih<^
:
—
Murray has been associated with conversion to plutonium and de¬ complete or partial collapse off*
Bankers Trust Co. since 1932* In
the United Nations or the Atomic '
naturing to render it "safe," and
1943 Mr. Murray joined the Army
then
eventually :,; its release; to Development/Authority; protect1
Air Forces as a private and was
licensed users for industrial pur-; tion will be afforded against the
released with the rank of Captain.
poses.'
/:::*'M/."1:'! eventuality of sudden seizure by t
He was recently awarded the Le¬
Two days earlier parts of the any one nation of the stockpiles, /
gion of Merit for his services in
report
had been given to the reduction, refining and separation f
the field of industrial demobiliza¬
Senate atomic energy, committee plants and reactors of all types \
tion planning for the Army Air
;
by Dean Acheson, Under Secre¬ belonging to the authority.
Forces.,;
/'•/
/■■',.
." :■■■/■., /: ,/.■; * *-■. *
* <: ••'..
tary of State; These disclosed the:
Major Edwin J. Dyckmann has
discovery * by
scientists of the
Today the United States has k
returned to his position in the
means
of
rendering
plutonium monopoly in atomic weapons. W^ 5
Municipal; Bond Department of useless for bombmaking.
One have strategic stockpiles; we havp
Bankers Trust Co. after three and
member of the. Committee said, extensive facilities for making the
one-half years/in the Army.
His
according to the Associated Press ingredients of atomic bombs and
most recent Army duty was'with
report from Washington on Mar; for, making
the./bombs.;: them.r /f,
the
AMG
in
Germany.
Major
26, that the "problem of sharing selves; we have a large group oL
Dyckmann has been with Bankers
atomic energy secrets with the people skilled in the many arts .
Trust Co. for 15 years,
rest of the world may be simpli¬ which, have gone into this proj- ,
z / Bankers % Trust - Co.
announced
fied if the process is proved in ect;
we
have t experience
an^ ;
on
March 28 the opening of a
know-how obtainable only in ,th'e
Consumer ' Credit : Department, practical operations. However, he
actual practice of making atomic
which will make personal • loans, pointed out there still a long way
to go to bq sure that a denaturing; weapons;
we
have considerable
from $60 to $3,500 to individuals;
which* are* repayable out* of in¬ plan would;rendqr atomic energy: resources of raw material; and >
Credit
the
.
posit^ of $2,555,885,573 and re¬
sources
Proposals; Pres. Postpones Tests
Department's Committee on Atomic Enery on March 28
78-page report urging the establishment of an Atpmic
The State
Trust Co. of New
of
Manufacturers
Thursday, April 4, 1946
COMMERCIAL & FINANCIAL CHRONICLE
creased frorh
;,y,V,
/•'
s,
Sterling
,
.
,
.
.
,
useless for bombs.
*
some
are
'
f
/'
this
Of
iri dividends
/paid
•
,
$1,237,498
amount
on
and $1,256,091 was
divided profits.
The" Central
was
capital stock,
*
■
.
/
;
//'
.
.
"Times";
York
Jan.; 18,
of
1946,
It is true that some
monopoly
Hanover Bank
&
deposits
were ,!$ 1,687,366,373,
against $1;,842,737,478 on Dec. 31, 1945; the
total.jesources for the same two
periods respectively were $1,818,199,401 and $1,972,323,270.
Cash
hand
and
due from
banks
on
1 199,401 and $1,972,323,276.
Cash
March 31 was $303,648,608 against
$364,695,907 on Dec. 31,1945; hold-
/
-
•.I
;
r
-
/'/'/
M
.
:■
v
and
$335,242, respectively.
banking requirements of this com¬
munity that Bankers Trust has in¬
creased its facilities.
,
*
"
ings erf U. S. Government obligations
were
$888,346,713 against
$967,002,630, and loans and bills
purch&sed amounted to $553,234,156 on: March 31, against $553,006,391 at the end of 1945. - Capital,
$21,000,000, and surplus $80 C00,000,
on z March
31
were/ unchanged
from the Dec. 31 report, but un¬
divided profits advanced to $17,785,462 March 31 from $17,259,826 Dec. 31, 1945.
:
York
reported as of March v31j
1946, totai deposit? Of ;$1,156,221>705 and total assets of $1,227,214,197
compared respectively' with
$1,290,314,214 and $1,359,074,439 as
of Dec. 31, 1945.
Cash on hand
and due from
a
of
Loans
and
discount?
amounted
to
$389,716,422, com¬
254,742.
pared zwitH$388,178,059. /Capital
and surplus remained at $20,000,-
$30,000,000, respectively.
profits after reserve
of $600,000 for quarterly dividend
increased to $11,293,186 from $10,526,174 at the end of December. *
and
Undivided
York
March
on
28,
William D, Ryan and Helmut Andresen
were
appointed
Secretaries.
Assistant
quarter amounted, it is stated, to
$2,023,481 as compared to $2,000,.656 for the same period a year
on
and
amounted
recoveries
to
$229,-
against $975,071 for the first
quarter
of
credits for
ed
profits
securities
695
as
1945.
Miscellaneous
the quarter are report¬
$513,802
as*
compared /to
period
year
ago.
Capital and surplus
were unchanged at $25,000,000 and
$65,000,000 respectively and undi¬
$721
for
the
have adopted as the
in
ciple
energy.
of the know-how.
report
first prin¬
our
It has. tjeeu jecognixed that this,
of monopoly could not be permanent. s
accomplishment
the
these fundamental
t
There have been valid differences
objectives the
of
gerous
activities in the field must
holM Left 'open taxational rival¬
ry but must be placed in truly
would take other, nations to con\e.
abreast of our present position, or'
international hands.
admitted that during the next
five
twenty years the situation
will
was
announced
on
March 27
by F. Abbot Goodhue, President
of Bank of the Manhatan Co. of
New York,
that Ernst C.Ophuls has
appointed European Reprer
sentative of the bank with; head¬
been
same,
Ophuls is
England. <Mi|.
of
In
this connection it is impor¬
that
tant
shoud
purposeful
a
field
the
qf^^ctiyities/whichri
R.
charge,
Vice-President, is
assisted by Edward
in
J.
account
reflects
an
"*•
cer.
■
;<
increase
$477,815 over the figure re2
for Dec. 31, 1945/ Total
resources amounted to $ 1,795,350,r
367, as against $1,921,945,613 at
the end of 1945, and total deposits
of $1,596,-379,986 compare with the
of
ported
The
Public. National Bank
in its March 31 statement of con¬
dition
that
total-
deposits
as
securities
declined
from at the end of last year.- Cash on
$804,686,409 to $826,253,001, while hand and due from banks in the
loans
and
bills discounted in¬
(Continued on page 1852)
,
and danger near the
of activi¬
becomes
Wt;./''• /
'
middle of the spectrum
ties
where
less
thedivision
sharp. :
;
.
It implies substituting for a
competitive development of atom¬
ic armament ■A; conscious, deliber*
ate and planned attempt to estab-:
ish a security system among the
provide the means to re¬
define as either "dangerous" or
"safe"
when
new
knowledge
shifts the line. In these matters
close
questions
will arise, of
course,
as
to the issues which
must be referred for approval to
be
to
the individual nations,, the issues
which ; need only be referred t<?
United Na¬
tions;, like the Security Council,
and the issues which can.be de¬
some
of
organ
termined * by
world that would
nations of. the
,
atomic
with,
Above
the
administrative ac-,
Development-
surprise
against
protection
give
attack
weapons*
all, it involves the substi¬
tuting of developments which are.
known to the world for develop-*
-
by the several - nations
might well remain more or
less secret,1 and *where the very
fact of secrecy woud be a constant
ments
which
of
; source
incitement
fear,
friction.
*
.
t
v
-
*1
*
*
r
)
The
surprise use of - atomic
The seizure by one na-*
tion of installations necessary for
of
the
weapons.
only
not
a
would
weapons
b^
clear signal of warlike
intent but it would leave other na¬
tions in
a
position—either alone or
concert—to
in
take
counter-ac¬
plan, of course, has
other security purposes, • less tan¬
tions.
The
gible but none the Jess important,
For in the very fact of-coopera¬
tive
effect among the
nations of
right¬
the world rests the hope we
ly, hold for solving the
war itself.
v
problem of
y'A
be upbased pn
have put
It is clear that it would
wise to undertake a plan
Authority itself.
the
/
.
security which we see in
the realization of this plan lies tri
the fact that it averts the danger
■*
tion.of the Atomic
/
and
-
--
-
will making atomic
Another difficult problem
proposals which we
unless there were some
hope that they would be
entered into and carried through
forward
Trust Co. of New York announced
of
March 31, 1946, amounted to $524,091,369 and total assets to .$55$,Dec. 31, 1945, figure of $1,749,590,- 421,705,
compared
respectively
469.
Holdings of U. S, Govern¬ with $545,497,980 and $579,536,018
ment
chinery governing the manner in
which the line will be drawn be¬
tween safety
the
cannot
monopoly
our
last.
expansion
Cobb,
that
fact
services to the public
dealers and manufacturers. Allen
implies a a,
acceptance from the outset of
tralizing exclusively in the Au¬
of its thority any more activities than
through the are essential for purposes of se*
opening on April 1 of its Consum¬
er
Finance Division, with head¬
We would expect that the
quarters at 100 East 42nd St., op¬ ter itself should, so far as prac¬
posite Grand Central Terminal.
ticable, define the areas that are
This division will make instal¬
clearly dangerous, in which there
ment loans at, low rates of inter¬
must be an exclusive international
est for various personal and busi¬
operation, and the areas which
ness
requirements, for the pur¬ now seem
clearly non-dangerous,
chase of automobiles* home appli¬
in which there may be national
ances, and other types of equip¬
and private operations.
One of
ment, and for property; improve¬
the most/difficult problems will
ment. J, It will also finance the
be the creation of charter pro¬
time payment sales of retailers,
visions and
administrative ma¬
announces
profoundly.
International control
the
possible
as
but it is generally"
it;
surpass
efforf
to keep as broad
be made
and -diversified
on
have changed
of New
a
$15,881,078 in the general re;-
serve
opinion
to
national and private hands. Every
effort must be made to avoid cen¬
)o.
the time which it
proposition that intrinsically dan-?
u-v.fl •:
graduate of Stanford Bray,; Assistant " Vice-President,
and a staff experienced in the con¬
of New York reported as of March University and was released frorp
sumer credit :field.
The new serv¬
31; 1946, deposits of $1,309,037,880 the United States Army in Febr
Prior to servf ice will be available at all offices
and total assets of $1,424,973,625 ruary as a Major.
ice in the Army he was associated of the company./ ' -/ //"z;"z/'/ '
compared respectively with $1,524,160,575 and $1,637,503,776 on for 12/ years, with - the. Bank of
At a meeting of the Board of
Dec, 31,.1945.
Cash on hand ana America, San Francisco, Calif., of
which he was an Assistant Vicer Directors of the Grace National
due1 from
banks
amounted
to
'•/
',"///'
Bank of New York held on March
$210,528,634 compared with $258,- President. '
27, Herbert A. Nickel and. Ed¬
593,487; holdings of United States
Government securities to $605,The statement of condition of ward S. Frese were appointed -to
489,186 against $790,555,298; bank¬ the Bankers Trust Co. of New the office of Assistant Vice-Presi¬
ers' acceptances and call loans to York
dent; Albert C, Vernon and Fred
as of March 31, 1946, shows
$189,133,178 against $171,435,856; total capital funds of $144,660,067, H. Nagel were appointed Assist¬
and loans and discounts to $273,- in
comparison with $143,317,050 ant Managers of. the Foreign De¬
234,091 against $275,847,577. /
/.j Dec. 31, 1945, representing an inr partment and Floyd Dunston was
Net operating earnings for the crease of $1,343,017; The balance appointed an Assistant Trust Offi¬
Net
atomic
.
It
quarters in London,
The' Chemical Bank & Trust Co.
ago.
In
of
we
meeting of the Board of
New
banks amounted to
$190,319,729 against $305,697,449;
holdings of United States obliga¬
tions, $580,467,625 against $604,-
000
At
Trustees of the United States Trust
to
Atomic
weapons, but to the availability of ;
Energy Commission; that is, the;
raw
materials*
to i theoretical
strengthening of security and the
knowledge and to some elements
promotion/of the beneficial use
ing up the UnitediNations
to
Co.
This applies principally v*
material facilities .or to
Canada.
not
part pf: our!
hold; in common
Kingdom an&/
we
United
the
with
set-
the)
is likely to hold.
future
ity must of course be those which
have been/so well stated in the
resolution
.
of the past but also what
ance
|
,The ' fundamentals / governing
the Atomic Development .Author-;
:>
Bank of Manhattan Co. of New
in its'statement of condition.as of
on
/
-t
March 31, 1946, that total
1
$5,085,242,/ $3,250,000
credited to un-
Trust^po. of New York announced
.
:
were
theoretical ;
broad
a/
/of
•
<■//
have
we
the knowledge of the field which may.,
.inadequate/ in
future
highlights of the State Department appear
report, included in the Washing-; years, but which enables us to"/
evaluate notonly, the
ton special dispatch to the New
perform^
Following
It wil
write
probably be necessary to
into
the
Charter
itself
a
systematic plan governing the lo¬
cation
of
the
operations and
valid
good faith; nevertheless, we
provide against the hazard
that there may not be such, good
faith and must ask ourselves this
in
must
property of the authority so that*
a strategic balance may be main¬
tained among
nations.
In this question: What will be the state
of affairs
should this.. plan be
way
protection will beafforded
against such eventualities as
the adopted with the intention of eva-
Volume
sion
163
should evasion be
or
feken
by
years
when
it
under-1
basis of
unless the tests
so
„
of
Congress are critical
pxans
to hold the tests,
our
present monlies in two rather dif-
now
not do
:
of
DOtn
ox
Kinds of monupoly. Knowledge will, become gen oral and facilities will
neither in
their legal possession
"brandishing the atomic
or
in their
nor
curity
the
with
peace
I
though
of
advices
our
knowledge and
of
physical
in
the
balancing
monopoly
cannot
be,
lost
once.
at
and
Here
:
be,
there
again
t
.
limitations on the scheduling ' { commander of the Sixth Army
inherent in the nature of our pro- j on the West Coast, and Lfeht.
POsals; and in the nature of the 1 Gen. Lewis H. Brereton, AAF,
deliberations necessary for their
,
there is
]
rather wide freedom of
a
choice in the actual
scheduling of
disclosures. -1 Here considerations
f took
1
j
.%
1
-
this
information
times. A schedule
sive
the point
can
suces-
outline
at-which: this must
In
cur.
at
particular,
there
gory
price increases of 10—25%
September.
•
Average increases in the larger
pities from 1940 are 69%. on the
some
\
extensive cate-
more
which
years
divulged
nehce after a charbeen adopted and the
has
ter
be
must
of these cities
since last.
discussing these
v
markedly.
climbed
75—80%
show
which should, be divulged, in the
early meetings of the United Na-
problems. t*
'; There is a
.
the larger cities
Report
price
rises
which
are
slightly less than for the lowerpriced property,'although'in some
cases> such as New York City, the
rtses are greater.
-* '•v;
c
'
These larger cities report that
jn the few months since V-J Day
Between
a
Ijmited category of information
tions Commission
rtsQ
to $12,000 in 1940,
property has
oc-
is
.
~
J??/?1-68 i^!?n
,
•
and operation of ,the
plan will
require divulging certain categor-
of
11
xU
,
i
of; President
cities
r
jsumer ; price
- 30 %;I con¬
cost index: for a typical
kinglet-family house, 37% ii
•
From Washington
;
.
homes' in
the
order
£
t
Should «,i- worst
the
cwm
happen and,
during the transition period, the
•
entire effort
States
will
collapse, th^ United
at
all times
be
in
a
favorable
position with regard to
atomic weapons.
This favorable
jposition will depend upon material things; less and less will it
yest upon keeping nations and individuals ignorant;
"
.
?
When
fully
in operation the
plan herein proposed can provide
a
great
of
measure
against surprise attack.
much
than that.- It
more
deterrents
to
the
.
security
It can do
can
create
initiation
of
schemes of aggression and it can
Establish patterns of cooperation
nations,
among
the
extension
of
which may even contribute to the
solution
of
the-problem Of war
itself.
When .the plan is in full
operation there will no longer be
Secrets about atomic energy. We
•'
believe that this is the firmest
basis of security;
'term there can be
for in the long-
; control ■/. and
internatioal
no
—
no
international
;
co
—
operation which does not. presup-
/pose an international community
"of
s/
knowledge.
.-./,
..
Mar 22
On
House
an
;
official .White
announcement
stated
that
'("atomic bomb tests to be conducted
in
.
'
I
the
Pacific
would
be
post¬
poned for "about six weeks." The
reason given, according to United
Press advices from Washington,
was
^ld-~followin2^e nassa<J^
been
that a number of Congress-
r'men
"have
to.witness
to -a
.
expressed
...
heavy
,a
desire
dor 100,000.
^ ^ 5fn.70„. ?h
_
Ahri
^
.On homes which sold for.$6,000
or
less in 1940—47; cities_ _(17%)
reported price rises «rf'10O%. M
veterans
housing
cncnoM
~
and
combination of Middle Western
and Southern committeemen put
over Congressman Carroll Reece
of Tennessee. , Former Senator
John Danaher of Connecticut has
not been looked upon as a "Liberal" by any stretch of the imagination but he had the.Dewey tag.;
John W, Hanes, who headed the
Willkie Democrats in 1940, made a
msvaaKti+ thprp was no doubt
good run but there was no doubt
a
the majority of
wanted, a dyed
in the wool Republican, that they
|. were tired of trying innovations. .
The attitude of the committeemen
did
not augur well for EitherDewey's or Stassen's chances for
- ~
from the first that
oc
.
arp
bearing the
mpmhprc
"
the
,
-
-
2
•
nomination in
Presidential
1948. It favored, instead,
Bricker.
rt showed a determination for av
Middle Westerner. / However, in:
wh^n
the committee meeting each State
two votes: In the convention
the more populous States usually ...
predominate.' Insofar as the com-'
mittee is/concerned, however the:
me'
to°
stuff whlch n.a® Pmguea
them for. more than, rnght
years.
fellows are pretty thoroughly de-
Fpised and generally suspect by No
their colleagues, and the Washing-
Their answer
^ "that they are for the "idea," are
ton newspapermen.
There have been a couple of
wide survey demon-
national chairman to succeed re¬
the party, were bowled over
Jl/AAVi- ..£?«««.
J . WW y
..
. -
emS- '«'t concerned with personalities,
gency
Natio'nal
influence the Re¬
an
men, looked upon as constituting
the more advanced elements' of
i
wUcL
this*
tiring Herbert Brownell, the East¬
ern and Far Western committee¬
fuli 5^?+
^
£J
^
ftis^t whip, they perm t the r
L&i nr^« whSh
writ
J ^
press which are writrertain
on
in
' Y.
_-
*,
Action This Year
Seen for Military §/
TfSIJllllg; Blii
g^n-wide^rvey demon- ^Kvt1eSa^fto II ' Members of; the
.Ambers-of
.
",y\-
show rises
strates tnat "specuiaiicni in land which .,
'speculation uv-iatiw the Liberals' " serious damage
,,
may . do
7
a......
.
of 751100%; 102 cities (36%) reft"""11
94.
no
^ the "Liberals'" racket. : Chairman |j tary Affairs Committee made the
racKet. unairman xary
available / for home construction *fteu .T
e/+us
port price rises of 56-75%; 58
ha^'alreadv reached maior nrn- Sabath#of ..
the House Rules"Comnas aireaay ^reacnea, major pro
has/already reached major pro- Sabath.ofeme muse nutes'-yum- I prediction on
mili'hrV tram.
<• n-- T _rs.
universal military traincities (21%) show price rises of
pWA
portions," the Expediter
mittee, at the
25-50%, and only a scattered few
For
raw
arreaue
in
nrhan lsts» moved that the committee
ing would be acted J. May fD.r or.
raw
acreage
m
uroan
».
r-hairman
Andrew
y For' raw facreage/'in /urbein lsls» movea mat uxc wnmmwv
report less than 25% increases. Homes
in
the
$6,000-$12,000 places of 100,000 or more, 20 conduct an
cities or about one-third of the ists. His idea was to turn the heat
c]ass have risen in price at about
.
the same percentage rate, though reporting cities indicate a rise of on those who are opposing the ex100% or more since 1940. And 18 tension
of OPA's powers, the urged
generally they are slightly less.
cities,. almost another one-third, $600,000,000 housing subsidy, etc.
More than half, of the smaller
indicate ' .increases
of 50-100%. To the old man's surprise he found ably
cities report that since V-J Day
Since V.-J Day, 14 cities, or 23% the Conservatives VAA r'j|WAy.), commit- ... nonciderations ; which
V-J
me yuu&cxv«w V
>.
on the
"
1
4-5—
make i it.
considerations
prices on property have risen 10 of the reporting cities, have had tee in a most cooperative mood,
to 25%, and many cities indicate
„likely,
ref
ah average price rise of 50% or Indeed, there should be an investiincreases oi as much as 25 to 50%
more, and a similar number of gation cr>v lobbyists, Congressmen
r
of lobbyists,/Congressmen J— xv.„x
Pbarlifi
Halleck and
nf the extensive
since September. ,•
1 \
^,
cities report rises of 25-50%. An- Gene Cox, Charlie Halleck and
Average increases in the smaller other 27 cities, 42% of those re- others, agreed. But it really ought
cities from 1940 are 68% for the porting, indicate 10-25% increases, to be thorough. / It ought to be
lower-priced property and 57%
Prices for fully prepared build- thorough enough, :
for the medium-priced.
And the
ing lots in the larger cities show cover the
average rises since V-J
Day in these increases since 1940: 100% ernment agencies. ^ The naive Sa-| "1. This is an election year, and
ernrncnt agencies. xbc nmvc
x.
^
these / smaller
communities ' are
higher increases in 15 cities bath agreed and
is
way
19%
and 15%,: respectively/for
to. r,f th^ ritfps renorting): 50request is to go before the bers Uni+Ari
are split sharply on
u
more*
66 cities' (24%)
i
auuaC
House .Mili-
March 24 that HO'
state!
*
,
request.of the I^tr
upon^this year,
investigation of lobby- Chairman Andrew J. May (D.Ky:) said that the legislation, requested by the President and:/
strongly by the War and
Navy Departments, would probbe referred to a special subcommittee. Following are / the
considerations /which maxe: n,.
likely, according to reports to the
Associated Press from Washing-:
ton, that in spite of the extensive
hearings already held bv the com-,
mittee, the measure will be turned
they said,; to over to the. New Congress when
lobbyists for the Gov- it convenes next January. :
^
'
,
.
.
IU VO
All
Wi V
p
AM A tl V*.
that
.
medium-priced homes.
lower and
the
JS IU ^U/. UCiUXC LlXt
100% increases in 25^ cities" (40% House. ' It is difficult to see how
g); 25-50% the House can turn down its Rules
increases in all the other cities Committee's request for an invesreporting.
.■/,:.:/•/tigation of lobbyists. The Leftists
Typical increases for raw land have suddenly lost their heart for
in the larger cities since 1940 is ^
But the Conservatives are
about 73%, and for prepared lots pressing it and there will be a
67%. Average increases since V-J merry time if the investigation
Day are 29% and 28%, respec- gets underway.
tively.
' * : /
Over on the Senate side, Seny
V4^
•
"Notice
that the price rise for
lower-priced : property gen¬
erally has been a rlittle higher
than for the medium-priced property,» explained Mr; Wyatt.-"This
is significant because we know
•the
that the vast majority of veterans
can afford
homes.
"In
very
only the lower-priced
substantial increases for the
few months since V-J Day;
figures such as 15%
or
Lest
18% create
impressions,
let"/ me
point out that 15% for five months
erroneous
means an
average
price rise of 3%
the constituencies of most memwhether
States
should Order
JJCI3 QX V PJ^XXV M»«—w
the United States should Order
compulsory peacetime military
training.
■
'
' ^ ^
«2. The Army had testified that
^ does not want both selective
service and universal training at
same time;
it now is fighting
extension of the
for a 0ne-year
wartime draft
showed 100-200%
55 reported 50-100%
increases.
Only 20 cities of the
252 smaller communities report-
Tf +,
wartime draft law i*
ator Styles Bridges has launched
.
•
.7
break up the propa- extended, and indications are
ganda hotbed which the Senate will be, but not for a year, the
has unwittingly long maintained committee wants to review the
in -the office of Senator Kilgore of
rr.nitarv nicture in the light
West Virginia/ Almost two years ^tire
ago Unapproved a resolution by of changed world conditions just
ing^ indicated "no change."
Senator Kilgore setting up a com-
,
addition, the reports show
the tests, but, owing i per month, or 36% if projected on
legislative schedule" an annual basis;
mho
price limit for the dura-
fZ of the
a
tnSn
J*
down
bear
publicans seem definitely fed up
on
letting the "Liberals". name
their officials.
They have napied
their last two Presidential candi¬
dates.
In the recent selection of
of
why they use
to
colleagues
the committeemen
Ahead of The News
"I'? (Continued from first page) to
price increased in today's market,/r
S.
them are downright suspect as
he. said,-/"it^^,ls'obvibus> that price SS?
A?a iSlffrai nm?in
hate
their
To the extent that the
increases of 25-50%.
"Allowing /fori admitted weak-
rises
of
Committee is
do not pertain to individual instances or the most dramatic price
index,
Since that time it has
way.
H-2 housing,
on
increases for a single house or a
single lot; Rather, they represent
averages for a city or metropoliwholesale price index for building I tan area."
materials has increased 30%; con-'1'
"
struction
members
one
been operating in their areas for
five and ten years./; Their reports
,
^
the plan proposed in this report
siirh
rhf»diiiin9unship
such scheduling is possible.
so-
:$?■Mr. Wyatt;'/"Many of them have
rtohttrol
Admitting that the general price
in America has risen, Mr.
W'yatt proceeded to compare the
real estate level with other price
evels.
Since 1940, he pointed out,
the wholesale price index for all
commodities has climbed 36%; the
level
.
^
covered
by
by Bridges, the Senate seems to
be moving to break it up, a very
procedure because in the
Clubability
of
the
Senate
the
h "Let me emphasize /that these
reports reflect the best judgment
of responsible people who have
intimate
familiarity/ and
close
touch with local conditions," said
lower-priced property and 63% on 60-70% since 1940 far exceed othmedium-priced homes. Since Y-J er price advances./: This is due to
Day, the average increases imthe extreme shortages as well as to
larger communities are 18% -and :the fact:./that' we have had "no
16%', for lower* and medium- ;tools to hold /ihe i/linelia ^real,
estate or other capital assets." - ..
priced homes.
•
~
under
reporting
108 show
Atomic Development Authority is ): Survey of the 250,,smaller-cities
Mr. Wyatt is urging Congress
ready to start its operations; and was supplemented by a nqmber of to include in the Patman Bill a
there are 'other categories that statewide and area-wide studies
provision which he declares would
may be reserved until the authorf°r smaller communities, so that curb this speculation in real estate.
ity later undertakes some of the tbe coverage Was actually more
subsequent stages of its opera- extensive than the number of retions, for instance, those that in- porting smaller cities would, mdi- CouTd eet but onde" the home has
V0W^
also
survey
of
ever
unusual
reported these have already jump¬
ed in price from 25-50%, while
the average increase for all re¬
porting cities on these houses is
about 32%.
Of the 210 smaller
Dr. - Compton ; and: Mr. Dewey
"
*
j
acreage.
More than 60% of the larger cities
of:; Public
i
members
raw
on
the war with priority assistance
and under price ceilings of $8,000.
F.:
leading part in developc-";'
are
for raw
called H-2 houses, built by private
builders in the closing months of
I Truman's commission.
75%, and the remaining 18
cltJLes report 1U"?PS «f 25 50%.
-■tnat the_information,
which this country alone
has, can
be divided more or less
roughly
into categories.
The acceptance
aes
g
"
also
°f 50
acceptability and/of general
political background will make a
decisive contribution.
*
"•
•
none
were
attention
everything under the sun,
to which the Senate has paid no
attention. But it has given lucra¬
tive employment to some 20 Left¬
ists.
With, extra offices in the
basement of the Capitol they have
been having a delightful time at
the taxpayers' expense.
Spurred
price'in¬
nfore
or
of 25-50%
The
j- ing the bomb,
(Continued from first page)
■
i
.
and
representative of the
Manhattan * Engineer
Department
/State
75%
slightest
the
the Senate.
increase
on prepared lots; 20 cities report
50-75% rises oh lots, and 130
cities—more than half—show postwar increases of 10-25% on lots..
Real Estate Activities
on
•Fwih
-
of
*
Reports
rises
Farrell,
chief engineer of the New York
,
of
recommendations
studied
Twelve cities show 75%
Dewey,
engineer
District—Thomas
are
aceptance. But even with the re¬
cognition * ofthese
limitations,
civilian
A
the
,
of
survey
37 show price rises of
50-75%, and 24 cities show price
.
Two Army officers—Gen. Joseph
!#W. Stilwell of Burma fame, now
not
the
acreage;
.
that
Day,
Eighteen cities report
creases
f Works, who, as a major general
tlie Jo*nt Chiefs, are.
knowledge
on
should
report
..
of
the / American
Society.
r
president
Chemical
Army 's
.
Bradley
and
Boston; chemical
rnemDers of the board, Which will
study/and evaluate the tests for
ri
;Out
advices
These
facilities.v-^^;p§;^;&:^^ ■
been selected.
had
V-J
ifenarS loS^
nology,
from
its
.
Compton," President of the
I;-: Massachusetts Institute of Tech-
nation Board for the atomic bomb
tests
given
•
Since
T.
New York
appear over a period of years,
quite different considerations are
involved in the sharing of our
board for the Leftists and
smaller cities shows this situation
Two civilian scientists—Dr. Karl
Washington to the
"Times," that members
of the Joint Chiefs of Staff Eval-
both /elements
hegemony will thus dis-
Navy
^ commands and now is bead of
| the Naval Analysis Section.
yl Meantime, * announcement - was
made on Mar. 28,
according to
present
10-200%; 76 cities, 50-100%, and
three,cities showed no in¬
|:{held{ various;.Navy combat air
:
geographical //distribution mark<edly favor anyone nation. ;;A1-
41 cities, rises of
crease.
Admiral
and se-
The committee proved
immediately to
be
a
sounding
of problems.
rises
reported
more;
Navy's General Board, and Rear
Ralph A. Ofstie, who
/
of nations."
cities
or
|UUIlilliaiIC4t:jL
I
weapon
1843
only
1U
UJLXV^
commander in the
Marianas
area and now a member of the
r
which have little in
purposes
common
John H. Hoover, wartime
i
things:
the loss
200%
Force, at
Two Navy officers—Vice Admiral
the
on r.
Third Air
the
Tampa, Fla.'
the
ground that they would serve no
knowledge, and useful purpose in the task of tryphysical facilities. The ultimate
ing( a achieve permanent peace,
geographical -1, balance/•
toward Recently, the United Press pbintwhich
a
plan for international ad out, a Moscow broadcast
acr
control must work will witness
cused
the f United
States ' of
ferent
of
er
smaller
leader and now command¬
war
put off for the time being,
It is known that some members
were
v
•
The
could
during the
being put into
is
CHRONICLE
THE COMMERCIAL & FINANCIAL
nation
any
effect?
opoly
Number 4478
-
Of the smaller cities
reporting,
showed 200% or higher increases in the price of raw apreage
13
since
1940; 56
increases;
For
fully
prepared
^
a move to
it
military picture m the iignt
lots,... 13 mittee
to
study
reconversion
beforeact."
expiration of the renewed
draft
.
.
„>
THE COMMERCIAL & FINANCIAL CHRONICLE
1844
supply and its dangers to the fu¬
ture of the country. I emphasize
Bather I have
to you about
lars that
are
things affecting dol¬
and my
your concern
and the
concern
of all the
concern
people in this country.
7
® A;
I
want, however, at this point
to you a. lew sentences.
"The people of the United States
to
read
entitled to
are
sound and stable
a
currency * * *. Their government
has no right to injure them by
financial
experiments * *
*. This
above the plane of
party politics. It vitally concerns
piatter rises
•
calling and
every
household in - the
land.
There
is
one
important
aspect of the subject which espe¬
cially should never be overlooked.
At times like the present when
business
every
and
enters
,,
the
of
^affairs
threaten
finance
unsound
the speculator may
/harvest
gathered
from
the
misfortune of
others,
the capitalist may protect himself
by hoarding-or may even find
profit in the fluctuations of val¬
ues; but the wage earner — the
first to be injured by depreciated
us,
anticipate
a
-
n
at: which
amount,
Our
;
money
the early
30's because of the re¬
payment of those private debts or
7hcrr
it
foreclosure,
went
up
igain in the late 30's because of
be
..
purchase ; plan
gold
under
which the United States Treasury
oought all the gold that anybody
the world had for sale.
The
aV
result
bank
increased
was
re¬
bank
and
deposits; This
Increase due to the gold purchase
serves
plan and to bank financing of the
practically defenseless." That's not
mine.
i"1
■
excess reserves
That's taken from the
mes¬
deficits
growing
in the banks
were
ipproximately $5 billions. I often
wonder why the banks did not
hen make, at least in some de¬
cree, the use they now make of
7
Importance of Convertible
he very much smaller quantity
of excess reserves that they are
44. '444;044 Currency ;
That statement; and, the warn¬ able to scrape .together.
They
ing which it contains is as ap¬ could have bought some wonder¬
plicable to the moment as to the ful corporate bonds in the mar¬
day it was dated.
Cleveland's kets of 1938 and 1939, thereby
of Grover Cleveland to a
special session of Congress in Au¬
gust of 1893.
' :
sage
|l
"
concern over unsound money was
494
because
the
of
supply of
that which
then
gold
our
we
decreasing
Today;
is
reserve.
for
use
not convertible into
money
He
gold.
was
concerned
because he feared that
there wouldn't be enough gold to
f:®
confidence
assure
v
in
the
future
value of that which
was then used
for money. Our present confidence
in the future value of what we
now
use
for' money in this coun¬
kind
of
then, corporate
buying the same
the
monetizing
debt. They
are
corporate bonds how
much less favorable terms.
Then,
probably for a reason, they went
on
increasing their deposits and
their reserves.
The reason prob¬
ably was that the Federal Reserve
minorities
mitted
would
to stop
move
serves
have
not
would have made
or
lated
in
this; country
in
•
the
future
.V*' }
m;4
held
gold. And people through the
turies
have
the
could at any time
be converted into
cen¬
had
peculiar confi¬
dence in the value of gold
being
sustained
ture.
into
the
Now that
longer
indefinite
our
convertible
into
fu¬
is
money
no
gold,
its
time.
which
to
they
about
concern
liquidity by
he banking law changes of 1935.
Now they seem willing, irrespec¬
tive of liquidity, to take on with
their smaller volume of excess re¬
large volumes of long-term
corporate bonds. And that means
serves
monetizing these
plain
language,
money
government's
present
prom¬
When:convertibility
of our
ises.
$!
v
currency into
in
1933,
,-'u..i.;
i
authority
handed
was
day to day the purchasing value
of every dollar in the pockets of
this
/;v7.
was suor>ended
somebody without further
action by Congress to
change from
every
7y:;77T:
gold
to
over
4:44
of
their
our
441
relieved
were
man,
woman
child
or
in
country. To whom did Con¬
turn over that great power
gress
the lives of
over
your
our
people? With
permission, I think I shall
the development of the
reserve
answer
few
to
that
moments..
Certain
it
question
..
4,
v
that
is
country today- a
supply of that which
for money. To
somewhat swollen
use
-
in
nave
large
very
our
use
a
v;
we
this
for
people
simple but
arithmetic, let
that the total monev sup¬
ply in the United States today is
me
say
approximately $180 billions.. Of
this huge sum $152 billions is ac¬
counted
for
by
bank
deposits
bonds.
Or, in
increasing the
supply of the country by
the amount of the purchase price
paid for them by the banks..,
:
Between
1939 and
1942 further
MOO
billions
time
the increase to $180
in
1942.
Since that
billions
at present has been due
partly to
financing of Treasury
deficits directly by the banks but
largely to the purchase by the
continued
banks of government bonds on the
market from non-bank sellers and
'urther bank purchases of corpo-r
rate long term paper.
Perhaps
wou
w'll ask, didn't the
Treasury,
Loan, limit
after the Second War
ubscriptions by the banks to sub¬
sequent Treasury issues? That is
and
rue
end
ar
the
bank
Treasury's
but
in
effect
to
was
limit
participation in the
to
the public
issues
between
those
issues
the
certificates of indebtedness which
immediately
future. The other
near
$28 billions is what we call money
in circulation. I am not-going to
emphasize this
money
in circula¬
tion because it represents, for the
most
part, simply that part of
bank deposits which the deposi¬
tors choose to have in the form of
currency.
And
God
they
choose
to
have
more
money
in
that
help
more
form!
us
This
$180 billions of money supply to-
were
largely, if not wholly, taken
by the banks.
And
as
I
never
tire
saying the purchase by the banks
of
this
short
term,
low
rate
Treasury paper increased bank
accounts just the same as sub¬
scriptions to long term or higher
coupon
Treasury bonds.
A few days ago
if
and
this
debt-
the banks with reserves, which
the banks continue to use to
buy
both government bonds and cororate bonds with continued
mone¬
tizing, *or, again to use the simpler
phrase, increasing the money sup¬
ply and thereby increasing • the
danger of
everything that flows
from depreciation of currency due
to
inflation of the money
My recollection is
v
Eccles also
nor
supply:
that Gover¬
suggested that it
ought to be better known in this
country 4that direct
bank
purr
chases of Treasury obligations to
finance the Treasury's deficits in¬
bank
deposits 5 and ^he
supply. I assume that is
creases 7
money
known
to
bankers.
may
bond
you
I
hope
well-known
to
it
become
soon
better
to the people of this
when the
increase
known
country that,
banks
bonds
ment
and
men
is equally
and. that it
you
acquire govern¬
the market, they
deposits; and the
on
bank
supply
of
Indeed
I
precisely the
same
as
when, they buy those
bonds directly from the Treasury.
money
go further and express
hope that it may soon be
equally well-known that, when
the
the
banks
buy
corporate
bonds
of
the
made
Federal
an
about the
Governor Eccles
Reserve
admirable
increase in
directly or"
the
market, they
likewise increase bank deposits
and the money supply* To finish
this picture, I suggest that it is
equally true that when the banks
on
their reserves to
a
buy any
non-banking
as¬
seller
they likewise increase bank de¬
posits and the money supply.
\\
The
result,
I
think, may be
by the statement that
summarized
,
of the $115 billions of government
bonds held in the banking system
at the present
time over $50 bil¬
lions were acquired by the banks,
not from the Treasury but from
non-banking sellers on the mar¬
ket.
That, I think, makes pretty
clear
the
extent
which
to
thq
banks have themselves either vol¬
untarily
the
with
Federal
the
permission of
Reserve
authorities
or
last three
offer
was
borrower
favorable
so
that
it
should
certainly be closed. When the bor¬
representative suggested
that they were in no hurry and
rower's
would perhaps wait before closing
with the banks, we
suggested to
that
they really ought to
proceed promptly. After all, we
said, this money which the banks
offer you is new money called out
chaos. Money that has never
of
of
ought
bond
have
who
approached
should
fixed the terms of such
a
have
loan and
sold the
resulting securities to the
public, including the life insur¬
ance companies, and I hope that,
when we get our financial and
other difficulties resulting from
the "emergencies of the past few
years straightened out, such bor¬
rowers
will approach those who
should be expert middlemen serv¬
ing borrower and lender in such
long
financing
term
operations.
We life insurance men made what
thought
we
as
was a
to term and
told
by
the
generous
rate but
corporate
we
it
bank
had
money
better
be
down and put through as quickly
possible* My point today, how¬
as
ever
is that when the banks made
that
loan
to
the
industrial
rower
they created
posits
and
our
made
®!3;Bank
■
bank de¬
new
an
bor¬
addition
to
supply.
money
Bond Buying
ism requires that the banks should
patriotic to finance the Treasury's
needs than it is to insist that that
financing be done soundly rather
than unsoundly.
On every occa¬
sion prior to a Treasury issue,
when my advice was sought, I
urged upon Treasury representa¬
tives; that the largest possible vol¬
ume of any Treasury issue should
be sold to the people and their
savings institutions and paid for
out of the existing money supply
rather than sold
be
to
the banks to
for with newly created
Whatever the decision,
however,:; we in The Equitable
paid
money. :
went
along to help meet the
Treasury's needs.
Indeed in one
year The Equitable bought over
$1,300 millions of Treasury issues.
We" did ; our
best to
persuade
Treasury officials that they should
make a greater effort to sell their
bonds to the- people themselves.
But, when the Treasury acted* we
in The Equitable did our share in
support of the Treasury's issues.
It is also frequently said, in de¬
fense of bank purchases of Gov¬
ernment
bonds
on,. the
market,
that it is desirable support of the
market.
This ' would be true if
.
pressure
decline
sales were threatening a
the market prices for
in
need
more
interested
in
term
loans
(
banks bought these Treasury
from the Treasury, bank
Federal
the
Banks, they
bank deposits
remained in the
Reserve
decrease
not
the
bills
The Federal Re-
paid for these bills
by adding their purchase price to
Banks
serve
bank
member
the
/
and
reserves"
when the member banks used the1
buy
to
proceeds
ment bonds on the
other
Govern¬
market,
as
they
supply by the amount which they
paid for the bonds acquired on
the market.
In other words, an
original purchase by the banks of
a
•
billion dollars of bills from the
The
de¬
posits by a billion dollars.: When
the banks—as in many cases they
Treasury
double duty.
did
first purchase increased bank
the
did—used
reserves;
the 1 Federal
from
obtained
Reserve
-
by
this billion dollars
of bills to the Reserve to purchase
turning
higher
over
Government bonds
the bank again
increased bank deposits and the
money supply*
coupon
the
on
market,
Deposits from Bank Bond Buying
Ndt Self .fdqutdating®;'®:,
another
point about
bank deposits
and that is once created, they sur¬
vive their original use. Take the
case of a great carrier produced
during the war at a cost of let us
say $75 millions.; Le^- \is. assume,
as well might have been the case,
that this cost was paid with the
preceeds of Treasury bills or other"
Government obligations sold to
the commercial banks. We are all
There
is
these newly created
familiar with the idea that much
war
production is subject to total
destruction. Let
us assume, as
*
was
the case, that this carrier went to
the
for
Pacific, performed gloriously
few months, and then hav¬
a
ing done its job in the war, went
All the labor and
to the bottom.
.
into it
.the money,
which had paid for the labor and
materials
Government bonds.;: It is difficult
to believe that the banks are sup¬
were
had
that
gone
gone, but not so
That money conn
porting the market when they bid
those materials.
Government bonds up to
tinued and still continues to stalk \
the distress of the seller. I'm sym¬
through the financial community
contributing to our present large,
supply of money.
The carrier is
gone but the money created to
pay for it is still with
i
present
prices of four, five, six and more
points above par* That looks like
ardent buying and you know it is
buying for earnings not to relieve
pathetic with the banks and
some ;, bank
responsibilities
when
issue
the
is
carry
between
but,
good
tion of
banks would agree to
our
that general statement.
The diffi¬
culty is in bringing sound bank
practice and Federal Reserve pol¬
icy
into
agreement
with
the
Treasury's insatiable desire for
low and lower interest rates.
As
I
said
a
few moments
ago,
■
I have said that at the moment
a very large money sup¬
My real question is do we
money? Of course/
nobody individually ever had too
much money. What I'm asking is!
whether from the point of view of
public welfare $180 billions is too'
much of money in circulation and"
bank deposits subject to draft. My;
question necessarily involves "de¬
termining how much <• money is
enough. As I have said, I am not;
an expert in this monetary field,*
May I playfully remind you thatf
experts
are
ordinary men far;
away from heme, and I don't get
very far away from home/
What
we
have
ply.
have too much
I
mean
is that I am not using
the
Congress,
by its • enactments in
1933 and 1935, departed from the
technical language of bankers and
financial
writers.
They
would
gold standard and turned over the
management of our monetary sys¬
tem and money supply to agen¬
cies of the Executive Department
of our Government.
I doubt if
state the question in
quantity theory of 5
money.
I am asking how much :
money is enough and do we at >
present have too much?
of
us
what
delegation
understood
was
at
involved
of power.
in
turned
out,
the
power
terms
this
As it has
over
probably
of
the
that
the
statement
Banks
to bank deposits and to the money
buy whatever the Treasury offers.
I go along with that despite the
fact that I have always
urged
in - addition that it is no more
very much
ten
Banks.
Reserve
did in many instances, they added
frequently that patriot¬
We hear
tinm
a
Reserve
banking system.
many
1%%.
Though we
investment and should be
Federal
Federal
by "the
The
bought them from the commercial
banks.When
the
commercial
since
money
better offer for
present time,
tied
offer
at
the
At
$13 billions of them are held
over
and,
therefore,
that the commercial banks of New
York and Chicago had made a
loan
maturities.
newly created
were
borrower
these short-term
handle
did
Government
to
men
to
would
who
individuals
or
want
gested that the gate from financial
chaos might
be closed
to
this
.
the
tions
bills
deposits
and the money supply increased
by their amount. When the banks
sold $13 billions of these bills to
,
they
the monetary supply.
There are
today outstanding. $17 billions of
Treasury bills.
When originally
issued, most of these bills were
bought by the banks.-.* Except, for
the banks, there are few corpora¬
around, may not know its
way about and might, in the proc¬
ess
of creation, be lost and no
longer available. We even sug¬
been
earnings for the banks and the fu¬
gations.
7V •
-m/Vr; ture public welfare of this coun¬
The other day one of otir big try as affected by its monetary
industrial corporations, planning system and its supply of money,
provision for its working capital I'm for the general welfare.
In¬
in the doubtful days ahead ap¬
deed, I think it unnecessary to
proached the life insurance com¬ say that practically every person
panies for a term loan, 1 know responsible -for' the administra¬
year
money
by purchases on
oblir
years
the market
Board
our
frankly said that
,
either from the corporate obligor
;
against which somebody has the
the
and
reserves
foolishly under, the pressure of
by the Treasury the Federal Reserve authorities,
financing
by
the added nearly two-thirds of the
banks of the Treasury's deficits
$80 billions increase in the money
ran the total money supply up to
supply of this country during the
f further
power to draw, either
in
bank
ourchase of gold
and
Treasury frequently offered new
and additional Treasury bills or
or
of
monetizing process but instead of
using the power, the Federal Re¬
serve System continues to
provide
and
us
bank
the
them
■
Federal Reserve Board and the
Federal Reserve Banks have pow¬
ers to check the continued
growth
set; from
banks
J>);
My point, which I hope to make
clearer as we go along, is that the
use
had not yet appreciated the extent
value is principally, if not
wholly,
dependent on the future value of
m
per¬
some
such aise of bank re^
that
at
try depends on what? At least in
Monetizing Bonds
Cleveland's time the future value
of the money which then circu¬ t ! Sometimes I think the
.-promise that it
on
7
Federal Reserve Powers
supply went up dur¬
ing the 20's because of corporate
private borrowing from the
banks and it went down during
the
to
monetizing the debt
which;1 he
properly
con¬
and
it
and
not
nor
as
demned.,
stands today,
of the Federal
Treasury added so rapidly to our
noney supply that in 1939 it had
gone back to $60 billions. ? At that
time bank deposits were high and
currency and the last to receive
the benefit of its correction — is
described
12 years gone up to the stu¬
pendous
was
action
any
stop the process which Mr. Eccles
going up and it is presently still
going up. You know that it went
up in the 20's to $55 billions and
then during the middle 30Vdue to
the depression it went down to $42
billions from.which it has in the
last
well
so
by
because
has there been any action by the
Federal
Reserve
authorities
to
It has been
1929.
$55 billions in
said
was
accompanied
compares with $100 billions
1942, $60 billions in 1939 and
aay
here to talk
come
rich for
"statement"
word
what
(Continued from first page)
expert in anything.
an
than the banks, we- nevertheless
felt that this bank offef was too
the
Dollars and Banks
home to be
Thursday, April 4, 1946
our
has landed in the hands of
Treasury which for many
has been the chief borrower.
Let us
take
an
example of
Meaning of Inflation
This
matter of phraseology isimportant not only from the point
of view of accuracy but also from
the
point of view of propaganda.
years
Treasury operations wnicn affect
According
to
flation means
-
the
a
dictionary, in¬
sudden rise in the
•
.Volume 163
money
seem,
THE COMMERCIAL &
FINANCIAL CHRONICLE
1845
supply.
That,
have with
we
ing,
Number 4478
it
would
The
us.
supply of the $40 billions Which
mean¬
however,
buy
frequently confined to the
inflation; that is,
ordinarily
follows
consequences of
expansion of the
money
That change in
the mean¬
to
something
Wonderland,
can
a
thing they
words
to be used
and
to be avoided.
that
pudding which
we
ito have for
'•.'I
•
was
section
it "slip
V
junket
down."
go
are
some
words
was
easily.
like
some
puddings which slip and
go down
easily, are smooth and
persuasive.
They are not harsh and
they do
Pot
«;
5v
:
raise the mule in
listeners.;;
.ft ft How
*
It
and it did
go down
There
/
•:
and
i
Much Money Is
Enough?
Again I ask how
i
much
is enough?
Do you want
hof
supply
money equal to the
national
wealth?
mVi o +
That if "iirllof
is
Pa+lior
what
Father
;
Coughlin used
laughed at him.
was
to
is
And
.
good. " But
.supply
say
now
our
not
passed, 50% of the
national
Should we have a
money
supply equal to the debt
in
Or
should
we
much
the
at
took
how
de¬
investment
for
the
funds
life insurance
We
and
our
we
reasonable
The
of
return.
of life
reason¬
able return
corporation as
but to the
benefit of
an
entity
our policvholders and their
beneficiaries. To
the
extent
that- life
insurance
funds are lost in
speculative in¬
vestment or their
earnings re¬
duced by. excessive
pressure to¬
ward lower
interest rates, it is the
millions of
policyholders
beneficiaries who suffer.
member
that
life
and their
And
re¬
insurance pol¬
journals
whole
financial
tion
were
made
over
and
it
necessary
again with a
an
arbitrary
outstanding
currency
adjustment of
obligations.
In
the
of
debb would
not
future
use.
That future
to
themselves
families but carries
fit
as
well.
The
a
use
and
is not
a
history in this
have
their
public bene¬
ne'er-do-wells
been
which
of
where in
tainly
resorted
to
spend their
money at the moment,
they are not much
concerned
about interest
rates or the
so
of money in the
future.
will do for the
long
rent
as
value
Anything
money for them so
accepted in cur¬
it will be
exchange.
responsible
But
for
the
we who are
funds of the
thrifty and saving must feel
a
sponsibility, not only for the
terest
which
yield
we
of
make
the
for
holders, but also
the
near
future.
Cer-
we are not
rates to result in
a
bank creation
of money
in
equal to all debt existthe country, all
private
debt, all corporate debt, all Gov-
argue
with
American that
one
reasoned,
dollar out of
a
that
we
necessity will increase
the money
supply.
which
war
of
"E"
are
outstanding two large
of
were
with
Bond Redemptions
Government bonds
bought during the
the
expectation
that
they would be liquidated
shortly
after the
war.
These are the "E"
other bonds bought
by in¬
dividuals witn che
understanding
that they could be
sold after the
and
debt.v" I'
.y
.
our
cor-
v^/7,'. 77. 7
;
My question now is, how are
going to prevent that result?
bank
loans
further
and
use
of
to
reserves
buy non-bank
held assets will certainly continue
to increase an
already inn large
too lavem
lit AU
MOov vu
;
_
v
volume of money. When a banker
makes a loan or uses his reserves
7
_
_
danger-
is
v
B^rd Not an,,
Jt
the
purchase and of its effect
7.
...
liquidity of his institution.
-
^
is true that concern over
on
TJ
It
—
liquidity
is less than it used to be
because
recent
banking legislation
seems
predecessor.
that Treasury-
Banks,
the
were
Board;J
proud
we
the
as
of and
the
reference
was a
compliment to the newly
created Reserve Board. The Fed-
^ral
not
Reserve
acting
Board, however, is
independent,
as an
re-
sponsible agency.
It is carrying
out Treasury policies and
the most
important Treasury policy at
pres-
ent is the maintenance of
low interest rates. Now the
simple truth
that the only
way to continue
low interest rates, is to continue
the existing huge
supply of money
and to add to it as much
more as
is
possible.
You bond men know
perfectly well that the reason for
existing low yields on corporate
bonds is the low rate on Government bonds and you also
know
that that Government rate is the
such
in¬
someone
I do not agree that the low
in all respects beneficial.
Certainly it Saves the Treasury
something in interest payments on
the debt.*
Its benefit to the
aver¬
citizen, however, is
age
nied
by
accompa^
detriments.
It in
some
closely related to the increase in
prices and as some of our return¬
ing veterans have discovered, it is
the real reason why one can now
a $5,000 house for $10,000.
The Treasury experts, in whom
buy
for all practical
purposes
of ;
our
control
money
supply is nowvested, are not likely to change
the easy money
policy which they'
have so long emphasized as de¬
sirable.
that
It is not to be expected
will without pressure
they
from outside the
Treasury change
their policy and add to the inter¬
est cost of Government debt.
Responsibility of Commercial
;777 Bankers :
The
commercial bankers, who
I have tried to point out
hav«
had a part in
increasing the money
supply and who in the last anal¬
ysis will, I think, be held respoiaas
by
the ^public
/about' it
the
to
confusing matters is
crises result,
*
if
could do
something
voluntarily.
matter when the others do not
go
In such situa¬
along with them.
tions some kind of organized com¬
pulsion which operates on
every¬
is essential.
one
>':;7-/rv
'
The Federal Reserve Board has*
power to deal with the mat¬
and has indicated that some-*
ter
ing has been done.
tion
of
The elimina¬
buying on the
clearly an attack
the symptoms, not on the dis-
on
certainly stop providing the
increasing
and nothing else
volume of money
that maintains low rates
for the
Treasury and results
for the investor.
in low yields
As we look back
the last few
years, any bone
can see that it
would have
over
man
killing
those
for him to have made
the new issues during
on
by
bidding
whal
might have been • considered a
high price at the time of the isSUe, by carrying the bonds, if he
years
could afford
and
anu
then
uava*
it, for
a
few monthr
marketing them wher
***——
newspapers, a few days ago, Gen¬
eral MacArthur's order
issued to
Japanese Central Bank whicli
the
in
effect
said
stop
Government
your fi¬
a sound basis.
*7. 7
ft;
71 suggest that the time has
come
in
this
country
for
Congress
to
back
control, of monetary
policy, including Treasury
policy
and that for the purpose of
doing
an intelligent and
practical
way the Congress should create a
this in
monetary commission
to look into
the entire situation and
report its
recommendations to Congress for
action. 7If we "drift further as we
are
tending, we will certa'nl / run
into serious monetary trouble. If
act forcefully without thor¬
ough consideration of every phase
we
of the
problem,
we may cause un¬
0
the
ess
which I have been
discussing
bv
by the
procproc¬
profit
,Y°U know that
at leasi
banking house
did exactly that
thing with that
1 "f
one
well-known
result.
''
Looking to the
nancial writers
future
seem
to permit the
pei illlL WiC
1
•*'.
our
'■
fi¬
to agree that
uiov-uuiiinib with the
discounting ""
policy will be
I Treasury
Federal Reserve of
any asset that with
respect
to
the
,
'
decisive
necessary
sary
hardship or do unneces¬
injustice to those affected.
And
please remember that those
affected
are
insurance
not merely the banks,
companies,
they
are
as
well the average cit¬
izens of the country, for they, as
Grover Cleveland said, are the
ones
who in the long run will suf¬
fer most from
,
or
savings
banks and investors in securities;
.
supply
ft
ft
ber banks with reserves
whicH
would tighten the
money market.
It is interesting to note in the
—
0,mnlv nf
supply of moncv
money
;
mem¬
paper; stop monetizing your Gov-,
ernment debt • and
get
our
currency.
the debasement of
*
,
is
The Federal Reserve could
ease.
..
marginal
stock market
take
ever
,
thing ought to be done but notb-
vestment
the
ft
some
nances on
of
;
financial
' But,
ot
course, it is ^difficult for a few
bankers to be effective in such a
result of arid is maintained
by the
deliberately created money supply. It is the competition for iri-
had been increased to the
point
to buy assets, he
ne must, ui
of course, where new demands for
tuuiac,
investj w uv.v ..v,..
„
think of the soundness of his
loan men* would
give him an easy
or
me
repect
somebody else is and neither
sible
XT\-
-Independent Agent
"
m
X
acquainted
permanent than the Secre¬
do I.
1£
•,
spoke
Supreme
Court of Finance.
In those
days
we had a
Supreme Court that we
a
y
we
Bank
.,
been easy
;
®
sys¬
have
of
There
volumes
necessary
any
monetary
very large supply of money and
maybe too much, I ask you to re¬
member that there are circum¬
stances just ahead of
us, which
in¬
policy¬
agree,
large portion of
ucuu.
.
any
a
almost
any
the complete collapse
as
If you
Effect
in the
purchas¬
ing value of the dollars in which
they will be liquidated in the fu¬
ture.
I think it
hardly
to
tem.
re¬
investments
our
lican form of government in
moment
Federal Reserve
of
the
going-to permit
Treasury desires for low interest
ing
,
*
Govr
our
on
following for a long time,
Surely we are going to stop this
process of making
money some-
or
country
+u
When in 1913 we created
Federal Reserve Board and
Federal Reserve
enthusiastic
keep
porate
poraie
of its financial and
,
Indeed, I think that
debt.is simply creating more and
more money.
In its early stages
it has many benefits for the
orig?
inal users of the new
money. Its
ill effects follow and will
there is nothing
so likely to de¬
representative and repub¬
.
said that the sit-
.
coun-
his
as
rate is
should be
chief bor-
same in effect and adds that
cause is a triple play involv-
■■P-
not think our
people
administration
stroy
a
•
an(I that something ought to be
done about it. Nobody has, as yet,
anything about it.
>\
haye
process
that 1 which we had all ernment debt.
icyholders are the
Certainly the bankhardworking, hoped was to be republican Ger¬ ers do not want and the
thrifty people of this
people
country. many became « {totalitarian Ger- ought to
They are the dnes who
oppose bank acquisition
through I many with the consequences that of all the Government
Industry and
bonds now
self-discipline ac¬
( followed
rapidly. 7 Again I say held outside the banking system
cumulate funds to be
set aside for
confined
the
ge701!? Possibilities for the future
some
But the
people have not yet felt its effects
sufficiently to be interested in
what is going on.
Monetizing the
pretty
new
uation at the
the
creating new money supply by monetizing debt has been
much more popular.'
Indeed, the
savings and
to begin all
of
Eccles has
the
of
ess
blew loose and burned
up.
Their whole economic
organiza¬
tion wiped out all
hands
g^&e^ if that borrower
few
of 7 greenbacks
would
have gone out of existence
at the
next election.
Certainly the proc-
organiza¬
that
think
^ the banks. should be discontuiued. Mr. Sproul, President of
pur New York Federal Bank, says
money which has come
the form of bank mone-
in
ernment
happened there.
Their
I
and
ous and that monetizing of debt
printing
there would not, be
any inflation.
You know what
the
politically^ expedient. Greep-
any
they declared that
control prices and that
they could
this
us
would
inflation and
flows * not to the in¬
surance
financial
getting ready for
about them."
reports
in
being used
the
tary of the Treasury, though I
don't think that you know who
by f the
supply
great
try and I do
nancial-periodicals today..
They
said they were
having no mone¬
tary inflation.
It was just
price
benefit of sound
investment
insurance funds at
rates
was
tizing
much the same
language that you
read in our bank
reports and fi¬
We
ask
all
note violent rises in
prices and the cost 6f
living. They
used in the Berlin bank
find
few
printing of greenbacks to
supply
to
beginning to
the
of
body
Chicago
creasing bank deposits. They
assets
money
the
city of
such money
manufacture.
remember
and
more
of
backs have
York
or
reserves for lend-
Federal Reserve Banks
wan-
last
put the brakes
bank'
policies
Federal Reserve Banks
by
the Treasury.
It was never intended that the
policies of
ln
a
policy
This suggests to
0£
w
me
same
probably determined by
use of.
expansion
of mg the Treasury, Federal Reserve
buildings occupied by the Bureau Banks and the commercial banks,
Printing and Engraving, you Everybody seems agreed that the
might have suspected that some- situation is
undesirable, has dan-
was
today. Maybe there is like
enthusiasm in the
Philadelphia
banks over
'similar^increases ftn
bank deposits. I was
there again
in 1921.
There was no
longer the
enthusiasm over their still in¬
re¬
cor¬
policyholders.
high-grade securities and
the
years,
They
-
asked
Washington during the
they
sound
Government bonds but the
lower
seek
be
then-just like the bank¬
New
Sv
observed carefully, as
3?ou
dered around the beautiful
been
of
ers
and
•
I
thnClnliW in'C
thepubhe
would have told you it could
not
except by the printing
of greenbacks./
Indeed, if you had
brought me^" into
leading bankers in
way
m
into
came
even before he
become
With its geography, announced the
m
£air £0 gay
fahure to
use of them indicates
the
continued control of the
ago
sounded
in¬
sponsibilities
are *
af¬
fected by the low seriously
interest rates,
not only by low
interest rates for
lower interest
rates on
porate bonds, which
follow
Government interest pattern.
are
having a difficult time to
It
had
you
rubbed their
hands and smacked their
lips as
they rolled off the huge increases
in their
bank' deposits; '
keep down the cost of its
debt.
I am not
going to talk in¬
terest rates
today in spite of the
fact that most of
my business
with
the
well
amount
necessary to sustain the low
terest rate Which
the
Treasury
sires to
to Berlin in 1920.
or
or.
Pvnaminn
have
and
fa
be' done
Governor
should
could
ma^e
how to provide this
country with a 200 billion-dollar
supply of money, I feel sure I
7'
Berlin and Vienna.
we should
have, the
be, if it is frank, that
should have
whatever
.is
touch
money
answer will
we
time
me
tral7 Europe
Treasury
present
plainly
*''■
re-
....
tricate
not now
be
Monetary Policy No Difference.
If
just after the first World War
and
The Equitable's business in Cen¬
a
money supply equal to
the Gov¬
ernment debt alone?
If you ask
-those responsible
for the
policy
it
shortly after he
Secretary's office,
^ets to° ^ Those brakes used
to involve and, probably, still involve measures which ' increase
interest rates. Those measures are
need^,;bank
tSLw
years
in different
as
_
•
will
low
,
created
.
the continuance
rate.
Mr.
Vinson,
with
or Purchasing
banks when the
from Greenback Issues
My first job for The Equitable
the
have
put
stopped. 17
wealth.
Country?
:
money
that production
Eccles
f
must,
IfM
that
and
ftf
ing
™
add to the money ci
supply.
The only kind of produc¬
affects inflation is the
production of inflationary
money
it has
approaching, it
in
il °
banks
the
want but it
won't absorb or reduce this
money
supply that I'm talking about. The
money will simply change hands
as the result of
purchase of the
tion
atojjg
^
hands.
and
we
the laugh
be
may
t™,iKiAc
coming
you
use
WPifarp
r
the
of
sure
policy
the
iL
liq-
hh
mav
nlff' there are manyv.
!!
hew businessmen who
scarcity
prices of the
things we buy but it can't and it
won't take the
monetary pressure
off those prices. You. can have all
munity for future
'
so
is supposed to
arewettv
near
ihvvtx
the
production
:
have
we
be
agenCy js the Federal Reserve
Board. The Federal Reserve
Board
future^afte^om"
or!Si! umif
the
cirih-Jic
things produced. But that money
will still be current in the
com¬
money
a
nVUiantiph
obligations which
production and there
won't be any inflation. Well,
pro¬
duction
may
take the
the
that
™dJ/ IVTe 'pederal^Re^ervl
for.bank
rfrrSlmchnrt
i
^
off
n„hi;^
their contribu-
<WhUe°bie'businesses
Ji
nr
stimulate
pressure
know
Treasury
to
of
iEVSfc-SKSSSc£
prices and somehow
wages will be fixed and he will
used
Sunday dinners when
living up in the
Byberry
of
Philadelphia. We'called
control
and would continue.
In the past
it" would not have been poss-ble
for the Secretary of the
our
.
-
which will make
supply, which
can
money and interest rates.
What
is Treasury policy and who
de¬
termines it? Mr. Morgenthau said
just before he went out of office
that low interest rates were
very
beneficial to the entire country
but feel that they
responsibility for the
JJUUliV.
public u^v.iv.vu with peculiar
agencies
sp0nsibilities for the effect
sponsibilities
Are th y also to be
e
sources of demand ror pan*
demana
aeuu
credit
are
have seen in this
country in
the past few years. Chester Bowles
in his engaging
way says that he
remind
future.
.
monetized with
resulting equiva-
Inflationary
we
right
the wrong
They
uvai
near
;, O
iL
cannot
some
•,
j
the
in
in
money
supply and the present and probable future increase in
that int¬
flation.
: ft'ft .7."
these two
system
i
existing inflation of
are . likely .to come
banking
Money
,
ones
of
bonds within
classes^ which
into the
the natural and prac¬
tical consequences of the infla¬
tion of our money
please.
The brain
trusters today include
in their
service to their
chiefs
careful
selection
me of
Stop Production
These
word
the
ernment
having, de¬
;
and
bear
,
on
holds
1
' '
I was brought
up to believe that
the bankers are
responsible for
the soundness
of our
currency,
would be liquidated after the
war
provide working capital and
post-war expansions. It is not too
much, I thmk, to estimate that
there will be $50 billions of Gov-
prices is
theory and I
in
^mber bank
portfolio*
to
pressure of a
mand for increased
wages.
seem to
make
of
expected
tirst
think is now to be found In
prac¬
tice in your
community. If prices
rise, it is to be expected that we
should have as we are
that may be
avoided in the
future
than to have it
suggest that which
is presently with
us. These
special¬
ists in the
science of
semantics,
like Alice in
think that
they
be
supply.
the
large a supply
prices for the
things we buy. The
large money supply
supply.
ing of the word
inflation suits the
purposes of the
propagandists and
the politicians.
They would rather
have the word
of
one
consequences of too
of money is higher
the rise in
prices which
mean any damn
billions
to
provide purchasing funds
for the things that would
then be
available and various Government
issues 1 bought
by
corporations
with the
understanding that they
few years ago ought to
than qne dollar out of
a
more
the present $180
That means that
sion-is
suggest
had
we
assigned
to
the
inflation in current
discus¬
word
war
"Ww
THE
^
1846
proposals after being told that
those
aemands represented "the
irreducible minimum" the miners
would accept in a new contract.
ion
w6v.
rates ; are
Wage
highest in steel
above that of last week
that
over
of
the
and well
week k
similar
year ago, states Dun. & Bradstreet,
its : weekly survey of
March 26, after scoring a Inc., in
runner
new nign oi
I8v.t>7 iasv trade. There were slightly larger
selections of many goods that were
Saturday. The latest-.figure-com.-'
reported to be scarce during past
pares with 187.26 for March 19,
and with 176.38 for
the corre¬ weeks. Interest was centered on
staples
and
demand
generally
sponding date a year ago;E:/Ye :<YE;;
tended toward the higher priced
Volume of trading in leading
items,
e
EE EEeEEEE"-
187.56
first page)
uuca
wholesale com¬
the daily
modity price index, compiled by
uun
oc
r»raustreet, inc., ciosed at
of Trade
(Continued from
Thursday,
COMMERCIAL & FINANCIAL .CHRONICLE
ward,
The State
■''Ve.■v..','-/ '■■E-'yEEe'E
V-^v:-
'EV;:'^:-"^
the
history and about
point where there is no
more slack and where higher steel
prices to support a greater wage
on
chandise, but
lagged. :E:
According
April 4, 1946
unit production
•*,E... •»'
to the
still
'■
Federal Rd~
Bank's index, department
in New York City foe
serve
-
t
store sales
period to March
increased 19% above
weekly
the
1946,
'
23* v
the
This com- y
pared with an increase of 20% in
the preceding week. For the four .
If there are no immediate indi¬
rate would backfire on steel proweeks ended .March 23, 1946, sales .
cations of an accord between the
auction and hence steel* employ¬ grain markets last week dropped
rose by 20%. and for the year to ui}
miners and, the operators, it is ex¬
substantially under the previous if; Retail 'food volume continued to date by 22%.
ment, the "Iron Age" points out.
;
i . 1 E E ; - E pj
increase this week.
Acute meat
pected by the steel industry that E The American Iron and Steel week and the like 1945 week. Ex¬
shortages were reported by many
output of steel will record a sharp Institute announced on Monday of cept for fluctuations in rye and
retailers but stocks of fresh fish
drop by the end of next week.
U. S, Will Hoi Join
this week the operating rate of oats futures, prices generally held were
generally adequate. • Brus¬
The effects of such a strike on
steel companies having 94%
of steady around current ceiling lev¬ sels sprouts, asparagus, and egg¬
the steel industry are far-reach¬
els.
The
possibility of higher
the steel capacity of the industry
ing, since it virtually poses a new will be 89.4% ol capacity for the wheat
and
corn
prices, either plant appeared in larger quanti¬
ties than during previous weeks.
In a note to the French Cov-:
paralysis of the steel industry it¬ week beginning April 1, com¬ through increased ceilings or in
Citrus fruits "remained plentiful,
self by cutting off its coal supply
ernment, released by the State;
pared with 88.5% one week ago, the form of subsidies in order to while the supply of apples was
and at the same time creates a
March 11, the
*6.7% one month ago and 96.9% encourage more liberal offerings low. Strawberries and pineapples Department * on
serious
threat to thousands of
United
States Government re¬
one year ago.
This represents an of those grains, was a strengthen- increased slightly.
other workers engaged in indus¬
jected the French proposal that, ;
ng influence.
;
*
increase of 0.9 point or 1.0 % from
E Spring apparel
attracted most
tries which are dependent upon
the previous week.
Country
movement of both attention this iweek.. Interest in it join in a complaint against,
both coal and steel.
E'Y YY'EYEEE.
Spain's Franco regime before the-:
This' week's operating rate is wheat and corn remained very
millinery,
shoes, and .handbags
Should the strike be of long du¬
United Nations Security Council; E
equivalent to $1,575,600 tons of
ight, with primary receipts of the was sustained at a high level.
ration, it will mean a further seri¬
in
the
note transmitted to the:
steel ingots and castings and com¬
atter falling sharply to the small¬
Summer wear appeared in larger
ous delay in the Nation's recon¬
French Government it was stated: E
pares with 1,559,700 tons one week est aggregate in many weeks. The
quantities this week and sports¬
version program which will work
that we do not consider the Span-. ,
ago, 1,351,700 tons one month ago condition of the winter wheat crop
wear
and
at
the
peviou last year.
in
ContplaiitlAgainslSpaiti
to,
of our whole
upset the balance
economy.
■
y ; '
•
<
•
.
Industry—With steel order
Steel
mounting
volume
to
*
new
highs
steel products al¬
most impossible i to
obtain fob
many months, pressure this week
was
being exerted
from sorpe
quarters to reinstall a modified
form of steel priorities.
Such * a
and with some
move,
however,
appeared doomed
than that; it
if for no other reason
would take months to build up ftp
organization if the personnel cogld
be found, according to the irpn
and
1,774,900 tons one year ago.
?
Production—The Edi¬
son Electric Institute reports that
the output of electricity increased
to 4,017,310,000 kwh. in the week
ended March 23, 1946, from 3,987,877,000 kwh. in < the Y preceding
week. Output for the week end¬
Electrical
1946, was 8.7% be¬
low that for the
corresponding
weekly period one year ago.
Consolidated Edison Co. of New
York
reports system output of
ed March 23,
play
showed
further
he result of
The
of wheat supplies
scarcity;
be a restraining in¬
fluence on mill offerings of flour.
Moderate hog receipts cleared at
full
ceiling prices.
Steers re¬
kcute
continued to
mained
mand.
suits
were *
fre¬
ish situation a threat to peace at;;
requested. • Stores were
present.
However, the note, as, :
unable "to
maintain
adequate made
public by the State Depart- e ,
stocks of men's suits and shirts,
ment and reported from Washing-EE
though slightly larger shipments
improvement as quently
additional rains.
retailers ton by the Associated Press on; E
Many March 11, invited France tq sup-. ;,
ply any further information con- T
promotions of raincoats were in¬
sidered pertinent, to together with
strong under gopfe-.deaugurated and reports indicated
Lard continued in heavy stocks were larger than they have suggestions as to what the Security
were
received by many
than
during
past weeks.
confined been for several years. < E... to packer
distribution. " Limited selections of curtains
Output of lard has been affected by and draperies continued to dis¬
recent comparatively light
re¬ courage many consumers. Piece
ceipts of hogs.
goods were requested frequently.
demand but sales were
mainly
178,500,000 kwh. in the week end¬
ed March 24, 1946, compared with
Cotton prices rose steadily in The supply of cotton piece goods
Age," national metal working pa¬ 173,300,000 kwh. for the corre¬ the latter
jialf of the week and al¬ was negligible. A few selections of
per in its survey of the steel trade.
The
Civilian Production Ad¬ sponding week of 1945, or an in¬ though some-irregularity devel¬ rgyon were available and inven¬
crease of 3.0%; Local distribution
oped during the final session" all tories of wool goods were only
ministration
was
in Econference J*
of electricity amounted to 177,- future contract deliveries closed
slightly less restricted than rayon.
Wednesday of last week "With "|he
500,000 kwh., compared with 169,- slightly above the 27-cent level. E; Metale appliances
and house¬
Steel Industry Advisory Commit¬
again largely wares were Very popular. Kitch300,000 kwh. for the correspond- Movements were
tee to discuss the tight steel sitijpadominated by conflicting reports enware was more plentiful • and
tion in its entirety. Arguments forfing week of last year, an increase
-
Df 4.9%.
emanating from Washington;""Of¬ Inore varieties of lamps were evi¬
against a modified^J)Xior|tyRailroad Freight Loadings—Car ferings of the staples were rela¬ dent than during previous weeks.
system were to be threShe;d"^t,
demand ,ifor furniture E and
with the expected resultcfrat the loadings of revenue freight for tively scarce and volume of tfans- The
garden
supplies
continued " to
steel industry itself woUl&"mqve~ the week ended March 23, 1946, actions was only moderate as trad¬
rapidly to eliminate ^piferq|ly totaled 804,606 cars, the Associa- ers moved cautiously pending a mount. Radios appeared in larger
H-tion of American Railroads an¬ clearer view of the situation ."De¬ Quantity this week, though con¬
tight spots throughout "fi!
nounced. This was an increase of spite a decline in tptal consump¬ sumer
selectivity was increas¬
try covering specific stl<
4,724 cars (or 0.6%) above the tion, the daily rate* of; cotton use ing.
ucts, the maga^ne stated
rose from 36,100 bales during Jan¬
Retail volume for the country
E
Since these tight are^|EcT3fo& preceding week and 12,135 cars, or
1.5%
below
the corresponding uary to 38,000 bales in PebftXSry; was estimated to be between 12
involve more than a sm^L'pIr
centage of total steel oyMt, xt is week of 1945. Compared with the the highest for any month since _jmd 16% over the corresponding
similar period of 1944, an increase March 1945. Total ginnings -from
week a year ago. Estimates of re¬
expected that some of,'
and
'
might do;
>
- Y
Department's com-;
munication said that the "Gov-, :
ernment of the United States feels-• w
strongly that a change of regimeE
in Spain is long overdue", but; >
added that it was "for the Spanish,
people themselves in their own E;>
way to bring about such a change, EE
Cpuncil
The
State
E In a later
19 to the
dispatched Mar... ,
Government, the.
declared that it ad~E»
note,
French
United States
original position op-:
the case against,.
the Government of Generalissimo r
Francisco Franco in Spain before- y
the Security Council of the United Nations. The communication was. ;
a reply to one from Paris urging- \
hered to its
posing bringing
us
to
this
reconsider our
course,
opposition to e
advices ?
said special
March 19 to the.
New York "Times" which added
that "beyond saying that we wereadhering to our position as pre¬
from
Washington
.
the 1945 cotton crop, according to gional percentage increases were: viously set forth to France, Jamfcs; e
3.5% is shown.
Paperboard Produc¬ the Bureau of the Census, amount¬ New England 11 to 14, East 18 to F. Byrnes, Secretary of State, dis¬
tion
Paper production in the ed to 8,781,455 running bales,- the 21, Middle West 5 to 9, Northwest closed no details of the note. /f . United States fqr the week ending smallest aggregate reported since
Tnev: French Government it; is .
l-l, to 17, South 20 to 24, South¬
March 23, Was
105.0% of mill 1921. Business last week in the west 8 to 12, and Pacific Coast 9 stated, made its proposal about. .
peacetime activity. • \
1
carded gray cotton goods market Jo'13.
Most steel companies T#rea.dy2 Opacity, against 104.1%
■
in the
bringing the matter before .-the
nfinyi+w
i
^
j nn I rrt Wholesale volume gained mod¬ Security Council after the United
have a priority system' r\f thpir preceding week and 92.1% in the declined in volume with small-in¬
of'
like 1945 week, according to the dividual sales confined mostly to erately over that of last week and
States,; Britain and France had .
own, known as the quota^ystqm,
the
corresponding week a year agreed on a declaration advising .
under which consumers obtain the American Paper & Pulp Associa¬ print cloths and sheetings. J—~tion.
Paperboard output for the
same relative proportion of stbel
Topmakers and manufacturers ago. The demand for staples re¬ the Spanish people to oust Franco;
current ; week
was
99%, com¬ continued to show interest indo¬ mained high with new order vol¬ by peaceful mean?. Franco s re-. ,
as they did before the war. Efforts
are being made by the steel com¬
pared with 100% in the preceding mestic wools. Sales volume, how¬ ume showing a slight increase. De¬ action was to announce that he
panies to take care of customers week and 99% in the like 1945 ever, tapered off from ^recently liveries continued to improve in had no intention of relinquishing; .
week.
whose initial appearance in the
office,
>
"
*
preceding weeks. The center of regularity.
market occurred during the wax,
Business Failures Lower—Turn¬ interest in the Boston market was
Department store sales on a
but, states the "Iron Age," the nat¬ ing dowhWard in the week ending the auction sale held there on country-wide basis! as taken from
ural tendency is to give seryice to
March 28, commercial and indus¬ April 19. ; The auction was well i the Federal Reserve Board's index
customers whose past history indi¬ trial failures numbered 18, reports attended and more than 4,000,000 for the week ended March 23,
cates that they
were
long-time Dun & Bradstreet, Inc. -In the pre¬ pounds of foreign wools were of¬ 1946, increased by 12% above the
consumers^
'
A vious week 22 failures occurred; fered and taken with good prices same period of last year. This
trading in spot compared with an increase of 13% E A three-day conference in April ;
The sudden realization by steel in the comparable week of 1945, ruling. • Regular
28 concerns failed.
This marked foreign wools was a little less ac¬ in the preceding' week. For the fc Eprovide; approximately^ l,50tj .
risers that a boom market was in
managers from . alL (
tive than heretofore. Arrivals of four weeks ended March 23, 1946, production
the making has caused a substan¬ the second time in 11 weeks in
wools in United States sales increased by 15% and for the types of industry in the United .
tial bulge in the volume of new which failures fell short of the foreign
States an opportunity to exchange ,
ports continued in substantial vol* year to date by 16%.
steel business,
E
E
despite the fact number reported last year
information and experience on; <
Retail trade here in New York
ume.
In the three ports of Phila¬
The week's decline occurred in
that many companies' are unable
common problems has been anto give specific delivery promises.
large failures involving liabilities delphia, Boston, and New York, the past week continued at a high
rounced by the American Man¬
This trend is expected to continue of $5,000 or more.
Ten concerns more than 38,000,000 pounds ar¬ level, but buyer arrivals in whole¬
during
the week ended sale markets displayed disappoint¬ agement Association.; • The meet¬
failed in this size group; as com¬ rived
to the point where it will bear
ing will be held in New York City,
strong resemblance to the "old- pared with 16 both last week and March 15 and continued heavy im¬ ment over the delivery volume of
The delivery of April 22, 23 and 24 at the Hotel
time" - steel
market
conditions a year ago. On the other hand, ports are expected during the next men's clothing.
Pennsylvania and will be open to
shirts was much under expecta¬
EEE
when
total
backlogs for many Small failures with losses under two months. :
members and non-members of the
Wholesale
Food Price Index tions and supply conditions of Association. Production executives! j
companies often represented from $5,000 showed an increase from a
seven months to a year's produc¬
week ago, but amounted to only Unchanged—With few individual men's hats proved tight, caused
from representative manufacture*,
two-thiras tnose in 1945's compar¬
tion.
,1
'V,
price changes noted during the by heavy consumer purchases. ing organizations and conference ;
Little activity was noted in pri¬
Barring a strike of long dura¬ able week.
week, the wholesale food price b1participants are being invited to
Concerns failing were most nu¬
tion, the steel industry's labor out¬
dex, compiled by Dun & Brad- mary textile markets as the trade examine production management J
look is slated for smooth sailing merous in manufacturing and re¬ street, Inc., for March 26 remained awaited revision in schedules on
policies and procedures and dis¬
until the present contracts expire tailing, with 5 failures reported in unchanged at its previous peak set-aside of rayon fabrics for the
cuss necessary modifications and i
each group.
in February, 1947, according to
second quarter.
Among both manu¬ position—$4.18.
This marked a
improvements to meet peacetime
facturers and retailers, however,
Mild weather encouraged buy¬
serious
cases
will
be
1
of
27,028 cars, or
Paper and
rapidly. Steelmakers pq
fact that today's steel market con¬
dition is no different ffbm high
—
-
a
^
Industrial Production
Executives !o Convene
•
1
'
•
.
the
above
trade authority.
Both
rise
of
2.0%
as
compared with
ing of seasonal merchandise and
the department store sales reflected a
pared with the previous week,
standing that both, sides will do
week, while potatoes and sheep substantially higher volume. De
mand for beer was heavy, but the
everything possible to maintain a fluctuations were mild in all trade moved higher.
usual mid-Lent slump continued
year's uninterrupted output as and industry groups except manu¬
The index represents the sum
well as to step up production to a facturing, where failures dropped
in liquor sales.- A slight decline
total of the price per pound of 31
from 12 to 5.
was
noted mi- food sales due to
high level, the magazine adds.
foods in general use. •
Two Canadian failures were re¬
Before the end of the present
milder weather and the reduced
Wholesale and Retail Trade—A
in
the
steel industry and in. the
steel union there is a
tacit under¬
contracts, however, it
that the industry will
is certain
again be
approached by the United Steel
Workers of America with a defi¬
nite demand for a guaranteed an-
failures
were
only half as high as
in the same week last year.
Com¬
ported as compared with 4 in the
previous week and 2 in the corre¬
sponding week of 1945.
,
Wholesale Commodity Price In¬
dex—Still-trending gradually up¬
$4.10 for the corresponding
date!
Rye declined during
large turnout of
Easter shoppers,
encouraged by mild spring
er,
1945
weath¬
raised retail volume for the
as
a
whole this week
country
requirements.
Subjects of the
*
sessions will in-;
productivity standards and
measurement, employee and man¬
elude
agement incentives, training, disci-;
pline, labor-management coopera¬
tion,
administration of cost
and
employee sugges¬
tion programs, material handling
level of meat supplies. A record
procedures, quality and quantity
dollar volume
was enjoyed by
objectives for employees^ foremen
furniture retailers,
traceable to
I and executives.
• -; ]
emphasis on higher-priced mer¬
policy controls,
Volume
163
Number 4478
THE COMMERCIAL & FINANCIAL
CHRONICLE
1847
Moody's Bond Prices
Moody's computed bond
fiven in the following table.
'
■77
7-
:\><7'
1946—
U. s.
.
•April
Govt.
2
and
bond
Averages
yield
averages
Avge, .v
Corporate*
i
on
■
Average Yields)
..
;
<■
■
,
Aaa
Aa
!
•
A
Baa
119.41
114.27
'
■'/
123.99
123.99
122.29
119.41
114.27
119.82
123.99
122.29
119.41
114.27
119.82
123.99
ll7.40~:>20.22'
125.52
'2(Lw«».» i-'.'iiy
k';
■
/>t-
22
;
119.41
114.27
117.40
120.22
117.20
120.22
122.09
117.20
120.22
122.29
119.41
114.08
117.20~ 120.22
122.29
119.41
114.08
117.20^120.22
122.29
119.41
114.08
U7.20W12Q.22
122.29
123.99
122.50
122.50
122.50
119.82' 123.99
119.82
123.77
122.29
119.41
21
125,74
114.08
119.82
123.77
117.2J?,
120.22
119.20
114.08
117.00
119.61
120.22
123.56
122.09
122.29
119.00
114.08
-:-C-T—-
the
125.80
J
119.61
116.80
120.22
123.56
122.29
119.00
125.80
•
15—_
114.27
117.00
119.82
120.22
122.50
119.20
114.27
117.00
120.22
122.29
119.20
114.27
117.0Q
120.22
119.82
125.80
119.82
125.81
119.82
„
125.84
J25.86
119.82
122.29
119.20
114.27
117.00
122.29
119.20
114.27
116.80
120.22
122.29
122.29
119.20
114.46
117.00
120.22
122.29
120.22
122.29
123.77
122.29
119.20
114.46
117.00
122.29
(Continued from
was
no
rationing at the retail
no
public, announce¬
prices, even of war
119.82
123.77
122.50
119.20
119.82
120.43
122.50
123.77
122.50
119.20
114.46
116780
120.43
119.82'
122.50
level;
123.56
122.50-119.20
114.46
116.80
120.43
119.82
122.29
.123.56
ment of fixed
.6—w—-4:;';125.81
114.46 ;,116.80
119.82
120.22
123.56
5—-125.81
4-^—-—
125.81
122.29,119.20
119.82
114.27
116.80
120.22
123.56
123.29
119.20
114.46
116.80
120.22
116.61
120.22
122.29
allocation
116.41
120.22
122.29
moved
122.29
119.20
2i—
123.56
122.29
119.20
114.27
119.61
.123.56
121.88
119.20
125.84-
J
—
119.82
125.84
1
114.08
119.61
f23.56
121.88
121.88
126.02
120.22
■
126.05
V
123.34
119.61
123.56
119.61
-77,./ 15-—: 126,14W'M
: 126.15
,
123.34
119.20
119.20
114.27
119^00
.114.27
120.22
114.27
116.80
120.02
122.29
114.27
116.41
120.02
122.29
lgl.88
123.34
119.20
121.46 * 118.80
121.25 1119.00
113.50 <115.82
119.41
113.31
115.63
119.41
118.60
112.93
115.24
122.09'
120.63
118.20
121.67
119.82 -117.60
118.20
117.80,
126.28.119.82
1946
1946-1—
1 Year Ago
2,
123.99
122.50
7 1946—»
Daily
?
119.41
122.00
111.44
120.84.
118.40-
114.85
106.04.
111.25
114.27
119.20
111.25
100.81
104.66 *113.70
111.22
*
rate*
'
21--^—.—
2.94
7^7 16
2.94
2.78
'7 2.64
2.55
2.95
2.79
7 2.64
2.55
2.95
2.79
2.64
2.54
<2.64
'2.54
2.46
•2.68
2.95
2.68
2.79
2.54
2.54
of
the
2.68
2:95
2.79
2.47
2.64
2.55
do
is
2.69
"2.95*.
2.80
2.48
2.70
2.95
7;f;-2.48
2.70
2.94
2.69
2.94
2.64
2.80
2.80
2.66 c^.v2#47\
2.66 7;
-4
2.66
2.47
2.66 777 2.47
7
^
2.47
2.69
2.947
:
2.47
2.69
2.66
2.47
2.69
2.66
2.47
2J54
2.80
2.64
2.80
•2.64
2.54
2.80
2.93
2.80
2.81
2.55
772.64
1.34
2.66 777 2.47
2.66
2.81".
2.48
2.63
2.53
Kbme,
2.69
1.34
2.66
2.93
2.81
2.48
2.63
2.54
2.69
2.81
2;48
2.64
2.54
2.69
:
2.94
2.81
2.48
2.69
,
} 2.93
2.81
2.48
2.69
2.94
2.82
5
7.
1.34
.
1.34
'
^ 2.66
1.34
•
2.66
1.34
—
4—i— ;*
2—
,' -:l—-'■ ;
Feb. 21—-,
„7
2.67
2.94
2.67
1.33
Low
2,
2.81
2.65
2.54
2.94
2.83
2 65
2.54
2.98
2.86
2.68
kinks in the production line and in
the
transportation
system.
In
2.54
2.70
2.50
2.70
2.99
2.72
2 87
2.53
2.68
2.55
large part
2.72
3.01
2.74
2.89
2.55
2.71
war
.2.74
2.56
3.03
23.0
2.57
2.73
2.77
2.58
3.04
2.92
2.58
2.76
2.61
2.78
3.05
2.93"
2.46
2.76
2.62
who had prepared for. years. Yet
2.68
2.93
2.70
2.63
2.53
we
.2.76
1.40
2.77
7
;
2.66
•
•'»*<
2.91
Ago
1,
2.94
2.69
.2.71
1945-
2 Years
April
2.69
2.55
1944.
i
our
2.69
2.83
*These prlces
ftre computed from average yields on the basis of -one
"typical'
coupon, maturing in 25
years) and do not purport to show either the
the average
average
movement of
actual price quotations. •
Th«r» merely serve to
Illustrate in a more comprehensive
way the relative levels and the;.relative
w yield
movement
averages, the latter
being the true picture of the bond mSrket.
NOTE— The
•/
(3%%
level
or
list
Issue
of
the
.
used
"Chronicle"
Civil
In
on
compiling
page
the
2508.
averages
was
j
given
in
the
'
Nov.
22,
^
Eggineering Gonslroclion
1945
r
>
v
1946
engineering construction volume in
totals •■ $134,912,000
for:
the
week
as
reported
to
highest since the Nov.
"Engineering
ending
News-Record."
United
March
^bis
is
28,
Private construction this
week, $100,681,000, highest since March
1930, is 88% above last week
and 2,316% above the
week last
year. Public
construction, 57%
7 ^
30,
the
week
than
less than last
last
year.
State
and
week
and
3%
week, is also 324% above theconstruction, 22% less than last week and
week.
Federal
less than the week
.
the
| records a cumulative total of $980,283,000,
total for
struction
1945.
a
like period of 1945.
in
Public
1946
totals
On
a
$326,893,000,
.vi-,
period of
con¬
opportunity.
inflation
our
controls
little longer.
a
i
is
576%
23%
In
"
,
;
,
spite of this generally good
situation, taxes
and
must remain high
burden of
carrying the
the
public debt is still significant. The
raising
and
debt
can
due
be
off substantial
the
carrying
of
revenues
the
public
both be done without
burden to
our
un¬
economy. Can
done, that is, if our economy
a high level.
is maintained at
The only
term
desirable, sound, long-
solution to
revenue
the problems of
and debt
management
is
high-level
production,
employ¬
ment, and national income. With
our
economy in high gear the
burden will be much
lighter. The
war
has
demonstrated that
importance, however, is the
fact
that
as
Secretary of the
Treasury I have a vital official
interest in
the
prevention of in¬
flation.
Taxes and Public Debt
7
'"■v.y- Management
Two of the most important sub*,
jects in the Treasury Department
taxes and the management of
public debt. Inflation,, or its
prevention, has a
both problems.
direct
effect
above
greater
that for
than
the
At
present
we
i
are
traveling
sound and pleasant road. Our
ceipts
are
mates
made
President's
larger
at
than
the
the
time
of
a
re¬
estir-
the
Budget Message.
In
fact, our net receipts from July 1,
1945, through March 22,1946, have
and
have
we
a
$200,000,000,000 nation.
Wants
a
Sound and Expansive
Economy
As
I
Secretary of
want
a
sound
the
and
Treasury
expansive
economy.
And on that point the
prevention of inflation has its all-
fully
our revenue and
find
creased
I
therefore
who
control
the
did
not
the
war
debt
man¬
cles
we
case
of in¬
1
which
up
by
large savings. The amount of'cur¬
rency, bank deposits, and United
States securities
owned
by all
non-bank investors has increased
from about
$82,000,000,000 at the
end of 1939 to about
$300,000,000,-
000 today. Our
wants, fortified by
these liquid reserves, can
give us
the impetus to
begin a volume of
peacetime production far
have
ever seen.
greater
Moreover,
these savings can be the
flywheel
our economy for
along time
to come. This can
give us the fu¬
ture that all Americans want.
It
for
can
war.
production
during '
have been presented
to
industry in the past year by the
change-over from a wartime to
a
peacetime demand. When the
pipelines are full, most types of
consumers'
goods will be
market
volume.
in
But
on
the
be the pleasant aftermath of
the
ex¬
tension of the Stabilization Act
is
to
necessary
supply
hold
once
mand.
the
line
until
matches
more
".,•''•
-
de¬
•
i
When
tempting
we
remarkably good.
/
served v- up
are
departures from
our
present program, let us remem¬
ber that the record under
price
is
Let
recall again and
again that the
best
index of retail prices we
us
have
showed
increase
an
72 months of this
in
the
of one-half
war
what it did in the 52 months dur¬
World
War
after
Nov.
that
I.
Let
11,
recall
us
1918,
prices
continued to increase
rapidly un¬
til June, 1920, when
they reached
a point double what
they were at
of the
war.
This
Then
prices have
stable since the
relatively
to
avoid
boom followed
Let
came
time
end of the war. We are in
position
backed
old
year
lems
have done. I
we
the
1941, despite the tremendous prob¬
lapse.
than
of
present physical level of produc¬
tion in the whole
economy is now
above the average of the
This
is
version
that
We have built up a tremenaous
demand for most consumer
goods.
demand
of
expansion
of peacetime
production in the
period since V-J Day as a whole
has beemmore rapid than in
any
other period of our
history. The
been
bad
removal
will
stifle
tionships throughout
our economy
f
-
with
and in spite of the obsta¬
have had, the
start
a
that
say
1946
crash.
with
issue
price control has
production. Price control
stifled
the
comes
take
stimulate and
increase production. This sounds
the
that
gain, that we
production de¬
total
those
ing
by
not
an
a
a
good
insecure
terrible col¬
undo
what
we
fully endorse the
ex¬
us
tension of the Stabilization Act.
Moody's Daily
Commodity Index
Tuesday, March 26^.
Wednesday, March 27-_-,
Thursday,
March
28,——,—
Friday, March 29————
Saturday, March 30,u_,_——
Monday,
April
1,
Two weeks
Year
ago,
ago,
ago,
March
March
271.8
—
272.1
272.6
273.5
272.9
273.6
19__.—
2„——
April 2——-
271.3
270.9
254.8
1945
High, December 27_:—
Low, January 24.—
2650
1946
High, March 29——-,:—
Low, January 2-
273.5
—
*
i
273.3
—
Tuesday, April 2—«
Month
•
materials
rather than increased.
agement problems, if we have the
dislocation of all values and rela¬
flation.
selling
control
-
more
on
cumulative -total for the
corresponding period of 1945, whereas
State and municipal
construction, $216,968,000 to date,.is 450% above
1945.
Federal
construction, $109,925,000, dropped 74% below the
13-week total of 1945.
grand
maintain
in the field of
stabilization, I have,
of course, a- strong
personal in¬
terest in the subject.
Of much
the
basis, private
this
must
In view of the work I have had
are
is
fact, they
the first substantial
reductions
are
employment, and high national
income, nor can we meet success¬
We
would
have been able
in sixteen years.
fanciful,
a
way.
speculative
like
make two substantial reduc¬
tions in the public debt.
That, too,
has a novel sound. 7 In
months.
inventories, in concentrating >
the
on
expenditure^
important
impact..
We
cannot
have that stable, high-level econ¬
omy
with full production, full
over
buying
and
to
over
again, this
war to the pursuits of
Again, we have had our
problems. By and large,
however,
the: job is done, and vve can. say
it was well done.
1946
cumulative
change
in
country who
problem in their
we
pro¬
In my judg¬
ment, there would be so much effort spent in beating the
market/
argument
means
over
lating—stimulating in
dizzy sort of
lower,' the cash balance of
Treasury can be less. Chiefly
by this
cannot
we
.
peace-
the removal
price control would be stimu-7
of
the
current
Although
of
way
accumulated
price
our
time from
which is 158% above the
$653,390,000, which
construction,
13-week
to
of
same
our
enough tomorrow or the
day to meet the demand that
the
peace. 7
41%
•'•'•.
engineering construction for
had
1945
52%
last.year. \
Total
greater
municipal construction,
last
overwhelmed the enemy with
armed might, had more than
enough to live on at, home, and
kept our economy on even keel.
After the shooting stopped we
the
.
less
enemies
the
rmjffed
continental
12, 1942 weekly volume which reached
$304,000,000. This volume is also
27% above the previous
week, 262%
above the
corresponding week of last year, and 56% above the
pre¬
vious four-week
moving average. The report issued on
March 28,
added:
..<r777. V77"
'
than
fighting
were
people
period,
on
un¬
needs
During that period,
happy situation which
Today we can be more optir
mistic about the future than ever
before, it would be pathetic if we
Civil
r
.
we
7;
Totals
J $134,912,000 for Week
States..
after: the battle had started.
-And
>7-7
had to prepare foir
we
a
well
or
has
in
the way to a halanced
That has a novel
sound,
quar¬
pro¬
production,
duce
we
on
Some
next
de¬
because
answer.
interim
much
we had our headaches and
peacetime pursuits to war
production, and from the homes
to
the
factories.
There
were
72.55
2.49
Not
therefore the best
beat the inflation
danger.
the
time
glad to report to this Com¬
With
at
<
-
1.38.
1946'->:M.3i^
:
1 Year Ago
April
inflation
<
1.32
High
of
enemy
This
is
final
we are
daily lives.
the
from
2.54
2.64
2.64
:
2.49
2.67
2.69
.
11-—-—
2.48
2.54
,2,54
2.64
2.83
am
have
have done;
heartaches. ; There
were
shortages of raw materials. There
were great transfers of
manpower
2.54
2.64
2.64
2.82
2.04
18—
.
2.64
7
2.83
2.69
2.70
1.32
4———
1946—
2.95
2.48
2.49
..
,
2.69
2.67
2.67
■1'..*8——1.32,
1—-— •
1.33
Jan. 25
1,31.
.
2.48
1.34,
1.33
15-
:■
<
2.93
Removal Will
people, consciously
consciously, overlook the
of
$9,700,-
nearly;* two-thirds
months
well
the
our 7
2.66
2.937
6-——-
,
sidious
1.34
2.69
I
.we: remem¬
against
of
the
These
high
mittee, to the Congress, and to all
Stabilization
we
fight
a
estimates
June.
budget.
little delay as possible.
ahead of us does not
the
the
last
armed enemy abroad and the in¬
2.54
2.53
'
8-——
,
Control
way to
the
of
but it is
we
ber the work that
2.54
2.64
2.63
after
duction and is
na¬
we
Repetition of
difficult if
so,,
During
7
-
as
task
appear
2.54
2.64
2.93
•
The
than
high'
are
'
2.64
.
2.81
2.94
2.69
a
1914
hand, retail
only 0.5% be-;
the
our
have
ail
made
a
wholehearted
effort to leave the wartime basis
and adopt the
peacetime course.
The two together mean that
other
extend
Act with
2.55
2.55
2.94.
2.69
.2.69
1.34
2.55
,2.64
77 2.64
•
2.94
'
•
2.81
;
the
at
eight
try; and one
important things to
most
to
9—
1
the
above
prevent it if
2.64
2.64
2.47
7-,
can
2.79
2.79
11——7/7 1.34
i
On
smaller
the V;
perience after World War I. We
2.95
r
of
problem before us is to
prevent a repetition of the ex-:
2.95
*
if,
that the removal of
price controls
is the best
way to stimulate
revenues
expenditures
000,000
The
2.68 7
2.53
2.67
•
12--—
2.53
7 2.53
2.46
2.467
.2.66
r
Meanwhile,
cline
World War I Aftermath
2.68
2.67
<
1.34
>
2.55
2.68
2,66
1.34
,
2.55
2.53
1.34
is—-—;
13—_l—
2.64
2.64
2.53
2.46
,
2.66
•
14—
7
2.68
1.35
-
2.78
2.78;
,
outbreak
points, making
108 %
Can Prevent
2.55
2.68
2.66
1*35
"
the
is
Our
year.
against
tween:V-Jv Pay and Jan. 15, 1946.
Indus
2.63
•
2.54
2.63. .V
><1.35'
i.
f
2.54
iti 2.46 7
2.66
r
P. U.
2.78
2.46
:
2.66
1.35:
2.94
2.46
'
.2.66
:
1.35
20_i„
7 R. R.
2.94
2.66
2.66
V* 19_i-_-—:'--;:'y;,1.35
18-
;
2.68
1.35
i-
Corporate by Groups*
Baa
2.68
2.54
"
22,*
A
2.54
2.46
1.36
—-
i-./:vV'23—i
Aa
72.46
1.36
-
Aaa
,
2.66
some
in.: Europe
of
level,
U 2.66
1.36
between
another. 46
rose
total
Corporate by Ratings*
con¬
ters, taking advantage of the ap¬
peal of this end, have
suggested
time of the
Budget
Message. In fact, our expenditures
in February were
$3,500,000,000
pressures gen¬
continue for
prices have risen
Corpo¬
did,
before the job was finished.
'
stayed at
are
made
a war
war
fiscal
level.
re¬
in 1914 and
Armistice Day. From Armistice
Day until June, 1920, retail prices
tl. S.
Govt.
26—
'
116.41
the
MOODY'S BOND YIELD AVERAGES
(Based on Individual
Closing Prices)
,
7
"lld.20
* 114.85
"
:•'
120.63
114.46
•
.
117.80
112.19
30—_i.ii.S 7
-
120.43
117.40
■■■*>29-:.——
1.36
' - :5 28——-•:;^-1.37
('. :27———'
1.37
,
117.40
119.82
:;7 r.%
?5_.
122.50
114.46.
,
by
months
121.46
> i Bonds
2—... 1.34
1——
1.36
,-y,U
120.84
117.60
Averages77
Mar.
121.46
117.80
114.66
Were
time after it has been concluded
on the
battlefronts. In World War
I, retail prices rose 62% in the 52
121.88
118,40
112.37 i
■ •
*
1
■:
118.80
112.561 115.04
"
124.97
1945-
generation
Production to meet the
demand
have been large because
tional income has
immediately after
inflationary
erated
122.09
12Q.841:
The
.
122.29
123.12
122.50
2 Years Ago, .
April 1, 1944-.' 119.68
•
116.41
existed
as
almost
1838)
page
vious
the Armistice.
122.09
-121.88 * 119.20
119.00
April
:
122.09
'
v,
.
120.22
carry out the de¬
know is right. Our
thwarting the inflation ogre all
through the war, we gave up just
been only 2% less than
during the
corresponding period of the pre¬
and
goods, until September, 1917. Fur¬
thermore, such price control and
122.29
118.60
125.18
•
116.61
122.29
122.29
126.28
.High
r
-
;
a is-—' 128.06
7 11—u., ,; 126.11
Jan. 25
•
116.80
114.27
we
thing
our
Price Control Successful
123.77
123.77
120.22
to
Increase Production
123.77
;
•
April
cision that
have the fortitude
us
children would look back
and
sider it the most
pathetic
Price
125.86
-
trophe. Let
and the wit
.
classified
8^-^.-125.86
7™----125.81
2_—
dissipation
of
spiraling prices and specula¬
tive markets.
We have the
heart
and the mind to avoid
this catas¬
mercial buildings and unclassified
construction.
122.09
11^:;-
•
1945
$37,301,000
4,167,000
33,134,000
4,900,000
28,234,000
122.29
123.77
12_™2_™
;
1946
122.09
.123.77
119.82
-125.80
14™
13
Low"
March 29,
122.09
v
125.80
19
18__—
16_i.
-
result, however, is not an
inevitable one. We could
quickly
spend ourselves in the
-.
March 21,
waterworks, sewerage,
bridges, highways, earthwork and
drainage, industrial buildings, com¬
122.09
122.50
125.77
-^-
This
construction groups, five of the nine classes
recorded gaips this week over the
previous week as fqllows: sewer^
age, industrial buildings, public
buildings, commercial buildings and
unclassified construction.: ; Eight of the nine
classes recorded gains
this week over the 1945 week as
follows:
122.09
114.08
114.08
20
•
In
122.09
119.40
119.82/123.99
.
' ■;;
■
.
$134,912,000 $105,931,000
100,681,000
-53,650,000
77
34,231,000
52,281,000
20,791,000
35,109,000
:
13,440,000 f
17,172,000
_
Federal
122.09
119.41
122.50
119.82
125.74
120.43
122.29
123.99
125.67
—
23
-
119.82
125.58
125,74
:;;7, 25,
117.40
'123.99-: 122.50
119-82
125.52
.
•>'.
Construction—_
Construction
'/ State and Municipal——
117.40-420.22 -122.09
125.61
28„,,0*.—A
119.82
119.82
122.29
U. S.
Public Construction
"Corporate by Groups*
R. R. ' VP. U.
Indus.
125.61
'
7';7:7.7:
March 28,
v'
Private
•-<■/
Corporate by Ratings*
125.86
29—_—_
are:
,
Total
125.64
Mar.
week and the 1945 week
are
1946
(Based
•
Bonds
Daily
'Averages
prices
Civil engineering construction volume for
the current
week, last
MOODY'S BOND PRICES
/-
7
and Bond Yield
252.ll
264.7
COMMERCIAL & FINANCIAL
THE
1848
1946
Thursday, April 4,
CHRONICLE
vast, expansion
''present feeble system of
international fellowships" with a
time to sponsor a
Commodity Price
Index Scores Further New High+.g;||
National Fertilizer Association
Daily Average Crude Oil Production for Week
Ended March 23,1946 Increased 16,400 Bbls.
,
16^400 barrels per day over the pre¬
The current figure, however, was 351,165 barrels per
4,430,950 barrels, an increase of
ceding week.
corresponding week of 1945, and was 19,050 bar¬
figure of 4,450,000 barrels estimated by
day less than in the
rels below the daily average
Mines
the United States Bureau of
of
23, 1946, averaged 4,493,800
barrels.
Institute follow:
the
the month
weeks ended March
Further details as reported by
the requirements for
as
Daily production for the four
March, 1946.
;
v
•
;
,
program on
the order of
the
Scholarships in which
each industry would sponsor one
or
more scholarships for foreign
students at American universities.;
Mr. Willkie contended that "we
Rhodes
V The weekly
:
National Fertilizer
week ended March 23, 1946 was
crude oil production for the
age gross
new
wholesale commodity price index compiled by the
Association, and made public on April 1, advanced
0.3% above last week, scoring a further new high, in the week ended
March 30, 1946.
This index is now at the high level of 144.9, advanc¬
ing from 144.4 in the preceding week.
The index has reached new must teach productivity and free
high peaks in each of the past four weeks and is now 3.5% higher enterprise to other nations* Schol¬
than it was a year ago.
A month ago the index stood at 141.9 which arships can play a mighty part."
Lend-lease assistance and loans
was almost the low point for 1946, and a year ago at 140.0, all based
on the 1935-1939 average as 100.
The Association, in its report, fur¬ to foreign governments are tem¬
ther adds:
+:V ' ; -V;y'.i,v+
porary palliatives and will not
The fuel index registered the largest gain, during the latest week, produce lasting world prosperity,
Mr. Willkie said in his address. In
of the three composite groups in the index that advanced. Its rise
was due to the higher quotations for bunker oil.
The farm products his rerparks he likewise stated:
"Economically we of the United
group rose to a new high point with the three subgroups of the index
Most of all
each advancing.
The cotton index again advanced to a new peak. States are suspect.
there is suspicion of what we will
The grain index advanced fractionally with rye prices again higher.
The livestock index showed a small advance because of higher prices do with our incredibly great ca¬
for calves.,. The textile index reached a new high level with a moder¬
pacity for industrial production.
must
teach
productivity
ate advance during the week... The food index remained steady with We
We must send technical
higher quotations for potatoes and dressed fowl just offsetting the abroad.
decline in cheese prices.
All other groups of the index remained men to establish plants in lands
in need of them.
J
unchanged.
m
. 1
,
'< 1, , 1
,
f
"We have nothing to lose from
During the week 6 price series in the index advanced and 1 de¬
such generosity, but everything
clined; in the preceding week 16 advanced and none declined; in the
to gain.
The best way to destroy
second preceding week 13 advanced and 4 declined.
the creativeness of our people is
WrtUJUaOALiJCi COMMODITY PRICE INDEX
L.
WEEKLY WHOLESALE
to hoard ideas. ; We cannot enjoy
'
*,
\
Compiled by The National Fertilizer Association
Natlo
1939=1.00•
prosperity alone.
Full employ*
1935-11
Institute estimates that the daily aver¬
The American Petroleum
the
of
'
the in¬
dustry as a whole ran to stills on a Bureau of Mines basis approxi¬
mately 4,633,000 barrels of crude oil daily and produced 13,732,000
barrels of gasoline; 2,334,000 barrels of kerosine; 5,514,000 barrels of
distillate fuel, and 8,596,000 barrels of residual fuel oil during the
week ended March 23, 1946; and had. in storage at the end of the
week 104,562,000 barrels of finished and unfinished gasoline; 8,917,000
barrels of kerosine; 26,667,000 barrels of distillate fuel,, and 37,906,000
refining companies indicate that
Reports received from
oil.
barrels of residual fuel
BARRELS)
PRODUCTION (FIGURES IN
DAILY: AVERAGE CRUDE OIL
,
,
-
W£j£<tt.l4X
V ;
!'
Calculated,
.■
Requirements
366,000
;
„
359,525
252,000
800
....—
Kansas
Nebraska
245,200
1946
Week
1946
t367,500
4259,400
1800
—
+
Mar. 24,
,,
369,350
275,500
950
253,500 >
' 800
yvy
«ach Group
Week
M
'mummm
—
146,050
-
81,000.
•
---w
-,
:
132,150 f?
317,400
Southwest Texas
-
318,300
146,700
381,000
306,700
352,100
■y
———^
Grains—
Fuels—Jii
—
——i..
Miscellaneous commodities-—
Textiles
—
Metals
1,890,450
—
Building materials
Chemicals and drugs—
2,159,000
82,500
llilvl
.
Livestock—.
.
352,loo
564,450
306,700
450,100
r-_»
1,817,500
1,910,000 11,791,553
Total Texas.
,
453,250
r...;
290,200
290,200
418,800
^
,
Texas—
Coastal
Farm Products-
477,400
127,500
436,550
1940
Detroit in the long run
in
dependent on full employment
jnr+ Londbriv Shanghai,::pslo^^
even Moscow. < No nation is any
is
1946
1946
144.0 %
140.5
,147.4
147.4
146.6
145.3
longer capable of
163.1
163.1
163.1
173.2;
172.0
165.6
lems alone,"
174.0
''
+ Fats and Oils
88,000
149,300
148,950
Ago
144.0
•
Cottonseed Oil-
81,000
ment
Year
Mar. 31,
Mar. 2,
163.1
Foods'
•
.
Mar, 23,
1946
Total index
25.3
Week
•
Mar. 30,
Group
Bears to the
Month
Ago
Latest Preceding
y
%
."."V 1945
377,500
4,000
6,650
—
>
Ended:
'
Mar. 23,
Previous
Mar. 23,.
Mar. 1
Ended
from
Ended
ablea
Begin.
March
Week
4 Weeks
Change
Week
Allow-
•B. of M.
Oklahoma
Actual Production:
State
/'
70,100
Fertilizer materials
'
-
Fertilizers————
—
(
141.6
;
solving its prob*
t
therefore:
•
•
206.4
252:3
259.0 y| 254.1
162.9
170.0
173.3
j "L A vast expansion in interna¬
173.4
159.9
159.8
1 V160.7 M 160.5 '
tional scholarships sponsored by
126.5
130.4
126.5
128.4
business and industry.
'After all,
133.7
133.9
134.3
134.3
the cost of educating a Russian in
156.0
162.0
165.4;
166.1
104.7
110.2
117.lv
America is no greater than that of
117.1
161.3
167.8
,154.2
^167.8
sending a Hoosier to Harvard Jr .<
125.4
127.2 '■
127.2
127.2
"2. Industrial fellowships which'
118.3
\ 118.2
118.2
118.2
119.9
119.8
will 'take men out of university
T19.8
119.8; 104.8
105.2
105.3 S;'105.3
faculties or industries or busi¬
nesses in any part of the world
144.9
144.4
141.9
140.0 and offer them the hospitality of
1946, 112.9; March 23, 1946, 112.5;
industry in any other part of the
„
world during a stipulated period
He urged
-
Louisiana
North
>
82,450
,
293,350
Louioiana
Coastal
100
—
292,250
iftii
Farm machinery
295,650
;
375,800
—
76,000
Louisiana—
V Total
406,454
79,603
374,750
•
77,150
55,200
+
1,000
1,000
100
;
100
.Alabama
-L
A
Illinois
198,000
13,000
Indiana--;
'•
,
"
•
2~500
+
208,650
\
,
17,650
/'■
:
18,150
250
—.
.
Ky.)
;/ 46,000
20,100
•
Montana;,
Colorado.
New, Mexico
3,645,550
3,874,015
848,250
22,550
4,493,800
4,782,115
107,450
—
95,600.
'
§824,000
3,570,750
f;
^
838,000
States
:
+
860,200
4,430,950
4,450,000
;+
.
16,400
.
'
v
-
crude.oil in the field.
with
STILLS;
.
(Figures In
Figures
"
'
Vf*
•i
of
V
Capac.
.
,
and
Produc'n
Of
& Dist.
Inc. Nat.
Gasoline
Kero¬
Blended
Stocks
sine
Oil
Resid.
Fuel
era ted
Report'g
Av.
atRef.
;
Unfin,
99.5
;j
1
Dislricl
tad.. 111., Ky.__—___
1,744
23,285
4,249
8,346
5,850
2,935
161
424
228
61
122.0
230
■;<y 27
92
83.8
82.3
2,345
24,072.
1,246
3,098
1,303
10,119
Okla., Kan., Mo..-,
tnittlio
Texas..--—-
59.8
'f:224
67.9
89.3
1.148
92.3
3,671
Gulf Coast-
96.8
312
120 0
318
Arkansas—
55.9
51
'40.5
1,214 :
851
Coast
140
Guli
Texas
Louisiana
No
La
Rocki
A>
;
Dlstrid
No
3
17.1
No.
4—
72.1
126
Total 11
Basis
Total.U
—
Mar.
297
636
4.327
.4,139
'
1,348
487
159
;
1,157
594
237
86.5
793
-
■+.'
■'1-:
46
70.2
344
82,0
1,868
;
in
'20
2 479
V 107
15,364
567
v..' = 34
401
6,490
'/
.
23,
1946
16, 1946
85.7 4,683
.6
4,607
20,591
13,732 '•'104,562
8,917
26,667
37,906
13,850
85.2
4,720
85.7
104,781
8,466
25,747
37,767
—
15,117
198,193
6,625
26,324
42,920
M. basis
24.
1945—
.
gasoline stocks of 8,887,000 barrels.
"tIncludes unfinished
12,029,000 barrels,
tStocks at refineries,, at bulk terminals in
transit
and
in pipe lines.
§Not including 2,334,000 barrels of kerosine, 5,514 000
barrels of gas oil and distillate fuel oil and 8,596,000 barrels of residual fuel'oil
produced during the week ended March 23, 1946, which compares with 2,168,000
barrels, 5,655,000 barrels and 8,382,000 barrels,
respectively, in the preceding week
and
1,710,000 barrels, 4,567,000 barrels and 8,817,000 barrels, respectively, in the
4Includes
gasoline
unfinished
stocks
of
week ended March 24,
1945.
1
inkf perform¬
a per¬
nominal
Let us, in short, develop
people instead of exploiting them.
This is industry's obligation to
i
wage,
% Change
1944
under 1944
4,042,915
1
Dec.
4,524,257
4,538,012
4,563,079
.4,616,975
—10.6
— 9.7
— 9.0
— 8.2
8
15
Dec.
22
Dec.
29—;
—
—11,0
4,337,287
4,225,814
3,758,942
,
1946
Week Ended—
-
Jan. 26
3,865,362
4,163,206
4,145,116
4,034,365
Feb.' 2
3,982,775
fan.
5
.
Jan. 19—
Feb.
—
.
Feb. 23—-a———
March 16
—
1,518.922,
1,563,384
1,554,473
1,414,710
1,619,205
—11.9
4,538,552
-12.2
4,505,269
7^11.6
3,948,620
3,922,796
4,000,119
3,952,539
4,472,298
4,473,962
4,472,110
-11.7
-
'
.
4,523,763
4.532,730
4,511,562
4,444,939
4,464,686
4,425,630
4,576,713
4,446,136
4,397,529
4,401,716
3,987.877
1929
1,806,225
1,840,863
1,860,021
1,637,683
1,542,000
4,524,134
-12.3
-10.6
'
-II. 1
-
9.3
4,400,246
8,7
4,409,159
4,408,703
1932
1,602,482
1,598,201
1,588,967
1929
1,578,817
1,545,459
1,512,158
1,733,810
1,736,721
1,717,315
1,728,208
1,726,161
1,718,304
1,699,250
1.519,679'
1,706,719
1,588,853
March 23__.—__
March .20-———
4,017,310
3,992,283
-a
■
-
4,329,478
7.8
Freight Traffic in Feb.
Below That a Year Ago
1,702,570
1,538,452 '
1,537,747
1,687,229
1,514,553
1,480,208
1,465,076
1,683,262
1,679,589
1,633,291
traffic
railroads in
1946, measured in ten-,
revenue
freight, .-de¬
by
handled
February,
of
miles
creased about 17% under
.It was urged on
Feb. 24 that the
Association of American
should
not
be
a
closed al-^
liance, but wide open to any other
nation wishing to so federate. Mr.
Willkie added that it was the first
War
feasible step toward an
federation.
world
inevitable
Mr.
Vice-President of Joseph
gram
&
Willkie,
E. Sea¬
Sons, Inc., of Louisville,.
Ky„ addressed the "lounge forum"
as the
School of Advanced Inter¬
national
Studies," his
message
of the
reaching, for the
most part, grad¬
preparing for inter¬
careers
in business or
uate students
national
46,000,000,000
ton-miles, according to estimates
just received by
from class T car¬
/
'•
the decrease was
22V2%', although
oi
volume
the
twice
nearly
final
;
following table summarize:
ton-mile statistics for. th(
year
1945, and preliminary figure*
February,
The
for
1939.
the first two months
of 1941
(000 omitted):
'
4
Mo. of Dec.,
Year
1945
1944
46.295,117
1946
Mo.
of
Jan..
Simultaneously Mr^y/illkie ad-^
vised industry that,. now is the
Mo.
of
Feb..
^Revised.
Deer
57,176,414
736,826,301
(final) 680,671,394
diplomacy.
*
22, February
announced on March
traffic amounted to
Compared with two years ago
first practical'step,
coming from H. FredericK
Willkie, brother of the late Wendell Willkie and advance-guard
representative of a new "internationalism" in industry.
His pro¬
posal, made at Washington, was that this Anglo-American federa¬
tion
the
Railroads
riers.
United States should immedi¬
Britain
the cor¬
responding month of last year,
the Association
ately propose federation to Great
toward elimination of war, the suggestion
I
class
based on reports
Proposes Anglo-American Federation
Open to Others as Move to Avert
freight
of
volume
The
% Change
1945
under 1945
1944
4,427,281
—12.7
4,567,859
4,614,334 u — 9.8
4,539,083
4,588,214
— 9,7. ' 4,531,662
3,983,493
9a——
1932
1943
4,560,158
4,566,905
4,612,994
4,295,010
4,096,954
4,154,061
4,239,376
—*
Dec.
Dec.
33
non
B. of M.
ir
B. ot
Mar.
320
1.200
B.ofM,
?
Basis Mar.
U. 8
1,831
1,008
1,416
374
•
be regimented
ing routine functions, in
functory way to earn a
(Thousands of Kilowatt-Hours)
1945
Week Ended—
■
107.7
14
District
CalUoinia
3,132
15,659
i 4,351.
+ L.+;:;;:J.rv.;V.+i:
Mountain—
m
9.3
8.7
7.8
.
3,151
87.2
78.3
.
1.6
K;^;13.4+i
•
I'iV 276
718
388
'
can
:
,
9-.^aa——-;
'342
10.8,
"The important
society."
2_——— 1
64.4
§89
§4 0
;
DATA FOR RECENT WEEKS
March
S5.6
11.9
2.4
"
'
§Increase.
March
94
',756
2-_—.L'/ 81.2
No.
-
13.5
•^+15.7
L2
,
:
5.7 a
3.0
;
13.6
' 0.2
8.4
§^<8
10.0
Rocky Mountain—
Pacific Coast
Oh
'
.
76.8 ,/
District No.
—
■ ■
Fuel
„
f
East'" Coast
1—
Central.
Feb, 16-a_*,n+--.
of
Gas Oil
IStoeks
to Stills
Daily % Op-
Refin'g
„
Dictr)^!—
West
Southern 1 States—
Jan. 12-
In
% Daily Crude Runs
...
42 gallons each)
barrels of
totals plus an
this section Include reported
estimate of unreported amounts and are therefore on a
——Bureau of Mines basistStks. of IStks,
IGasoline tFinish'd
kl
i
""
thousands
Industrial-
Central
—•
5.1:
institutions." ; •
point," he said,
"is that industry will profit most
from
developing well-rounded
peoole, people with .creative ca¬
pacity, people who have been en¬
couraged to find the best outlets
for their own potentialities and
capacities; rather than people who
local educational
March 9
4.2
6.1
3.6
1.4
13,6
international affairs, poli*
tics and economics by^the'dnsti*
tution, within industry, of classes
in these subjects, for all employ¬
ees
wishing to participate, and
accreditation of such classes to
4
«,
of widespread
Stimulation
"3.
study of
LAST YEAR
March 16,
March 23
March 30
Major Geographical Divisions—
tfew England
Middle Atlantic-—
1
OF
PRODUCTION
inl945.
DECREASE UNDER SAME WEEK
Week Ended—
for week ended 7:00 a.m. Mar.
GASOLINE; STOCKS OF FINISHED
.•;+;? AND UNFINISHED GASOLINE, KEROSINE, GAS OIL AND DISTILLATE FUEL /
;+, +
AND RESIDUAL FUEL OIL, WEEK ENDED MARCH 23, 1946
. ;
,
..
TO
below that of the same week
PERCENTAGE
Total United States:
20, 1946.
.J'- :-k jThis is> the net basic allowable as of March 1 calculated on a 31-day basis and
Includes shutdowns and exemptions Tor, the entire month.
With the exception of
those fields
which were exempted entirely the entire state was ordered shut down
for 10 days, no definite dates during the month being specified; operators only being
required to shut down as best' suits their operating schedules or labor , needed to
operate leases, a total equivalent to 10 days .shutdown time during the calendar, . month*
^Recommendation of Conservation Committee of California Oil Producers.
' '>
RUNS
the
30, 1946 was 7.8%
•
tOklahoma, Kansas, Nebraska figures are
CRUDE
that
mated
♦These^'i-e. Bureau of Mines calculations of the requirements of domestic crude
oil (after deductions of condensate and natural gas derivatives) based upon certain
premises' outlined in i'ts detailed forecast for the month of March.
As requirements
may be supplied either from stocks or from new production, contemplated withdrawals
from crude oil inventories must be deducted from the Bureau's estimated requirements
to determine the amount of new crude to be produced;;, In some areas the weekly
estimates do, however, include small but Indeterminate amounts of condensate which
mixed
March 30,
j
Institute, in its current weekly report, esti¬
production of electricity by the electric light and
power industry of the United States for the week ended March 30,
1946, was 3,992,283,000 kwh., which compares with 4,329,478,000 kwh.
in the corresponding week a year ago, and 4,017,310,000 kwh. in the
week ended March 23, 1946. / The output for the week ended March
908,100
43,850
1,350
.
,;y.%
Is
:
3,100
1,050
-r
106,000
Total United
r.':
24,850
+
.98,000
California
:+9*
19,600
2,850
64,850
31,250
v—'
of CaliLp 3,612,000
__
Total East
50
63,850
14,600
51,050
105,300
20,550
10,000
103,850
+ 13,300
111,650
20,400
23,000
.
150
—
44,300
94,000
Wyoming,
:
1,450
—-
32,000
29,000
Michigan
•
96,300
63.650
61,200
,
.
were:
The Edison Electric
•
Kentucky
base
109.1.
for Week Ended March 30,1946
7.8% Below That for Same Week a Year Ago
191,250
r 10,350
208,800
1945,
Electric Output
15
.
31,
of study.'
250
V
March
and
Eastern—^
(Not incl. 111., Ind.,
combined—J
1926-1928
on
'; 52,200
+
55,250
—
Mississippi
Indexes
80,200
150
77,250
52,000
600
Arkansas '
: Florida
365,750
100
250
372,000
All groups
100.0
*
•-
'
^49,000,000
f46,000,000
.tPreliminary
'
19.C
7+
1945
56,845,141 14
55,462,959. 17.
estimate.*..
"
Volume 163
Number 4478
Trading
COMMERCIAL & FINANCIAL
CHRONICLE
New York Exchanges
on
The Securities and
THE
shut'.down .on the last
March.
That will leave
Exchange Commission
copper
in tnis
made public on March
27 figures showing the volume
of total round-lot stock
sales on the
New York Stock
Exchange and the New York Curb
Exchange and
the volume of round-lot stock
transactions for the .account of all
members of these
exchanges in the week ended Mar,
9, continuing a
geries of current figures
with
compares
1,931,142 shares, which
3,429,122 shares,
ended Mar.
shares
was
on
or
17.14%
12.49%
of
the
on
New
York
Stock
Exchange and Round-Lot
(Shares).
WEEK
ENDED
MARCH
9,
level
Total SftlOS.-
.LI
if
149,270
U.^fwnr'.-ULUII
Except
for
Dealers
the
for
Odd-Lot
of
1M
... i.
n
—
...
,■
Accounts
■.
1.
5,633,730
nL
of
Odd-Lot
registered—
fotal purchases..—
}■;Short sales
■.
:
-
f
n„
.
m..
92,410
511,830
in,;
'Total sales
1.
"
6,100
{Other sales
,'V
Tot&l S&108
'
^
|<M(W m
m mmi
^
^
Initiated
Other transactions
Total
purchases
Short sales..
..>
and
281,310
...
*
-
VC,
Total purchases
;:'p£h •>:v Short sales
;
874,540
Total Round-Lot
991.150
Stock
Sales
Transactions
on
for
WEEK
the
Account
ENDED
York
of
9,
M
Short sale si..
.
Exchange and Stock
(Shares)
„
,
2,305
fifties
Jtf'wi
m. -! — m*m m* m
mim
mm,
nr/
m m ***** frrr mt
<
they
are
registered—
,
-
*
i
0
*
reduced
but
-
Total purchases
Short sales.............................
stocks
tions of
on
i:; Total purchases—
the
for
floor—
19,305
—*
Short sales.
{Other sales
—
!
Customers' short sales
:
volume
{Round-lot short
includes
sales
the
Exchange for the
,
are included with "other sales."
v
'
SSales marked "short exempt" are'included with * other sales.
-
_
'
.
.
21
I
'1
..|r.v::.y
Markets," in its issue of March 28,
"Conditions throughout the non-ferrous metal industry last
Kveek reached the point that borders on chaos..
Secretary, of Labor
3chwellenbach has named a fact-finding board to settle the
wage
dispute that is spreading in the zinc industry.
[The properties of
[Anaconda in Montana were scheduled to shut down on March 31,
stated:
m
The
CIO
producers
area
that wage negotiations for a
K0% increase are to begin within
kO days.
Owing to the complex
hature of the non-ferrous metal
Industry, early settlement of the
dispute by the Board is not ex¬
pected.
Few' sellers were in a
position to offer copper and lead
tion in forward metal was unset¬
tled as the week ended.
A special
rating
mium
ther
established
take care of
was
to
went
follows:.
The
on
to
for
cad¬
essential
publication fur¬
say in part as
-
.
...
Copper
Operations at
April 1,
on
$1,311,768,000
:
:
on a
ac¬
v.
rate
of
discount
approxi¬
per annum.
Range of accepted
both
cover
antimonial
at
the
end
of
v-V7-
Refy.
11-775
3ft
52.000
Anaconda, Butte,
and Great Falls
were expected to
52.000
52.000
_____
52.000
52.000
52.000
52.000
52.000
March
26
27
52.000
,
Chinese,
competitive
rate
0.360 %
.
'*'•
I.,'
;;'U''.C,'
flash
per
1
OV/
lower
than
named earlier in the year.
around
("E. St M.
Straits Tin,'
11.925
$100 per flaskr
52.000
52.000
6.50
11.775
,11.925
TRANSACTIONS
ACCOUNT OF
'
STOCK
FOR
ON
THE
THE
ODD
N.
Y.
EXCHANGE
6.35
52.000
6.50
on
\
"
Week Ended March
'
v '
Exchange
ODD-LOT DEALERS
SPECIALISTS
6.35
6.50
5-2.000
11.954
i 11.775
LOT
V.AND
6.35 ^
% 6.50
•
Trading
and
sion. The figures are based
upon
reports filed with the Commission
by the odd-lot dealers and
"
52.000
11.925
'
Securities
Exchange, con¬
tinuing a series of current figures
being published by the Commis¬
6.35
.6.35
52.000
4
$1,302,898,000.
—«3«w>
transactions for - odd-lot
of all odd-lot dealers and
ists who handled odd lots
New York Stock
STOCK
St. Louis
6.50
:
of
sim¬
a
April
on
cialists.^
—Lead-
,;,.6.50
c
r.
This
QUOTATIONS)
^ "
New York
bills
March
Plus
duty, this would be the equivalent
of
accepted.)
16
of
complete
figures
showing the daily volume of stock
the basis of
on
of
amount
The
V
price
52.000
n.925
maturity of
for
Commission made public on March
27, a summary for the week ended
,
v
v
the
11.975
12.050
was
a
NYSE Odd-Lot
Agents of Spanish producers of¬
New York
11.775
price
i
52.000
;
amount bid
was
issue
the
99% tin, continued
or
fered quicksilver
February
rate
0.376%
52.000
52.000
at 51.125c. per
pound,
11.775
■
52.000
••
52.000
_____
ilar
Quicksilver
re¬
low
52.000
—
lead by $81 to $82 per
flask, c.i.f., forward
February delivery, or approximately $1.50
11.775
:
•:
£
52,000
52.000
_____
Exp.r Refy,
11.775
the
There
23
soft
•Electrolytic Copper—
Dom.
(67% of the
June
1
•
6.35
16,
1946
Odd-Lot Sales by Dealers—
(Customers' purchases)
''
.
6.35
'Number
of
Number
Average prices for calendar week ended March 23
are: Domestic
copper f.o.b. refinery,
11.7750; export copper, f.o.b. refinery,
11.9630;
Straits tin, 52.0000; New York
lead, 6.5000; St. Louis lead, 6.3500; St.
Louis zinc,
8.2500; and silver, 70.7500.
V
Dollar
of
Total
For Wee*
Orders-
33,200
—.
Shares____
942,245
value
—
Odd-Lot Purchases by Dealers—
$41,870,85
(Customers'-sales)
Number of
t
,
.
Orders:"
'
Customers'
chort
sales:
■^Customers'
other
sales
Customers'
.total
:
The above
quotations
"E. & M. J. M. & M. M's"
appraisal of the major United
States markets, based on sales
reported by producers and
agencies,
They are reduced
'to the basis of cash, New York or
St. Louis, as noted. All
prices are in cents per pound.
Copper, lead and zinc quotations are based
on. sales for both
prompt and future
deliveries; tin quotations are for
are
prompt delivery only.
In the
trade, domestic copper prices are
quoted on a delivered basis: that
delivered at consumers' plants.
is,
As delivery
charges vary with the
destination, the
figures shown above are net prices at
refineries
Quicksilver on spot ad¬
vanced $1 per
flask, but the situa¬
business."
the
$1,863,398,000
accepted,
v
22
March
51,054
7,458 tons, against 7,388
January, Stocks of anti¬
Average
postponed'*
negotiations on freely.
has served notice on
in the Tri-State zinc
on
at
bids:
nominally
,'v May
52,000
April
21
51,929
refiners " in;
27
was
further
agreement.—Ed.
lending
25
26
"E. & M. J. Metal and Mineral
strike
of
"if-23
s
Stoppages Spread—
lemand for Zinc Active—Lead Sates Higher
the
45,312
22
,
was
'
:
March -25
44,806
DAILY PRICES OF
METALS
Non-Ferrous Metals Work
iut
41,643
48,257
(antimonial) lead. Pro¬
Mar.
that
reason
only sales.
:Jt.v
•
are exempted from restriction
by the Commission
,
mature
Average price, 99.904-f; equiv¬
shipment,
March
1,259
monial lead. in the hands of
which
to
offered
opened
cepted in full).
alent
March
1,573
91,490
volume on
pound,
'
-
49,795
tons in
finers
total round-lot
were
mately 0.375 %
follows:
as
Jan.
87,770
•The term "members" includes all
regular and associate Exchange members, their
firms and their partners, including special
partners.:
:
tin calculating these percentages the total of members
purchases and sales is
Exchange
opera¬
87,770
—
29,
and
were
during
in cents per
45,682
to
came
Total purchases.
4
which
per annum. Y-
tons.
40,070
—
statistics
duction
0
'■<.
there¬
fixed price basis at 99.905 and
$24.
Straits quality tin for
•
6,617
51,929
end
domestic
'§ 286,435
—-—
—
5,
Total
good
March
at
The
0. Odd-Lot Transactions for Account of Specialists—"
the
because of
domestic lead
and hard
23,440
262,995
ICustomers' other sales
that
or
1946, demand for the
High, 99.908, equivalent
metal
also
is
increasing, par¬ discount
approximately
ticularly outside of the United
'
States, and the supply outlook re¬ per annum.
mains tight.
Low, 99.904; equivalent
Consumption of tin
in this
country at present is at discount 1
approximately
the rate of
65,000 tons a year.
i,
254,155
——
of
1
(includes $34,061,000 entered
Though world production of tin
is expected to
improve moderate¬
refineries
January and February, in tons,
Stock
——
to
was on
covering the
64,760
{Other sales
twice
declined
Total output ;
Domestic shipments
56,335
Total purchases
Short sales
the basis of
on
'
4. Total-
with
were up
Primary Z&ZXgJZ
Secondary
56,080
Total sales
dated April
Total applied for
V Tin
to strikes,
Feb.
8,425
Total sales—:
closed
2,108
Production:
tOther sales
Total sales
February
Stock at beginning
35,000
Total purchases
Short sales
scheelite
April
Federal Reserve Banks
unit, sellers claim that
domestic
•
ly
900
I. Other transactions Initiated off the floor-
"<
with
be
known analysis business is
being
on
follow:
34,300
Total sales—
per
on
about of 92-day
Treasury bills to
have been offered here
domestic
amounted
scaled owing
The statistics
186,675
transactions Initiated
ore
on
Secretary of the Treasury
tenders for $1,300,000,000
im¬
at
production of primary
shipments
and
178,770
14,115
172,560
Total sales.
Other
week
of
ported
heavy demands from consumers,
—
'
the
The
75%s.
$22
Treasury
Bill Offering
March
lots
•
.
-
2,163,680
'
Transactions for Account of Members:
1. Transactions of specialists In stocks In which"
ft. Ruuad-Lot
in
compared
refined lead in
2,133,400
Hin.-—
last
tons,
^5 Domestic
a
-^Q t
v
lead
tons the week before.
C. 30,280,
w ...
{Other sales-..
of
market
v
1946
TotaliorJWeek
K Total Round-Lot Sales:
•i
Curb
Members*
MARCH
"
-
New
Sales
at 44d.
announced
quantity
scattered
New
Result of
; The ^Ministry
of
Supply for
Great Britain has reduced
its sell¬
ing price for tungsten ore from
90s. per unit of W03 to
Though
to
...
essential pur¬
maintain
first-quarter contracts.
17.14
ed
Order
M-389 and established a
specific
list of products orr
which a spe¬
cial "CC"
rating may be issued to
for
voted
tion for foreign silver was un¬
changed last week at 70%c. an
ounce troy. London was
unchang¬
Cadmium
metal
week
Treasury silver to in¬
the basis of 71.11c.
York Official quota¬
on
The
July
obtain
price than that which obtained
dustry
'&.}$'i\'
:■
Appropriations
last
sale of free
Tungsten Ore
now appears certain
that the Gov¬
ernment will have to
pay a higher
116,610
Total sales.
To
-sources.
with
Supply of cadmium remains
tight. To cope with the
situation,
the Civilian
Production Adminis¬
tration last week
revoked
supplies from domestic
foreign
United
compares
Senate
postpone
action
on
the
silver
amendment attached to the Treas¬
ury-Post Office bill until April 9.
The
amendment, sponsored by
Senator Green,
provides for the
.
larger supplies of foreign
lead, it
939,992 •).
{Other sales
/
available
The
Committee
operations
at ; the
"minimum economic rate." '"
;
second-quarter
period, owing to the unexpected
developments that have reduced
218,862
18,100
263,210
-1—
Total sales
Total—
4.
105,600
nM-u_irt
off the floor—
;i {Other sales..'—.
.
99,500 ;
.—.—
This
'
to
limit their operations
sharply. The
CPA has not
yet issued its revised
order on permissible
consumption
of
lead for the
109.330
Silver
t\
soon, consumers will be forced to
the floor-
on
purchases....—..-.--.4--—"-'—
some
quarters.
poses.
Under the old
regulation,
various manufacturers of
essential
products found it almost
impossi¬
ble to obtain cadmium in
forthcoming
604,240
Other transactions Initiated
Total
Bead
the
ber.
tons,
So far, the authorities
in Wash¬
ington have released about
6,000
tons of foreign lead for
April, and,
unless more lead is
611,800
lOther sales.—.
zinc.
procure
i
in
and concentrates
in the form of
ore
tons
The decline in
in the hands of
totaled 401,933
:
,7
^
inter¬
zinc
imports of 25,939 tons in ore and
9,666 tons as slab zinc in Decem¬
year ago.
and Specialists:
are
16,949
slab
copper
1. Transactions of specialists in stocks In
which
they
and
against 389,157 tons a month
pre¬
vious and 333,250 tons a
Members,
January
contained in
at wire
and brass
At the end of
February the
stocks
of
State imported
18,269 tons of zinc
For¬
same
strikes
fabricators
-
Account of
During
February resulted
from
mills.
production
'•
strike
ness.
February, which
ruary a year ago.
use of
copper in
5,484,460
J.-mr-I-III.
has
100,213 tons in
January, and 165,387 tons in Feb¬
Stock
with
metal, but spot quo¬
tations remained
quite steady. In
fact, spot metal was quotable at
$105 to $107 per flask, or
$1 higher
than a week
ago. Supplies on spot
appear to be in firm hands. Uncer¬
tainty over the Spanish political
situation
still, obtains in
for both Prime
Western and Spe¬
cial High Grade zinc
remains ac¬
tive.
Some producers of these
grades have turned
away busi¬
with
compares
development unsettled the
market
for forward
Montana and disrupt operations in
Tri-State district.
Demand
preceding week.
consumed
71,034
Fabricators
'
0. Round-Lot Transactions
in the
as
tons of copper in
1946
{Other sales-.
body
copper remains
unchanged.
eign metal sold at about the
the
Total for Week
—
fact-finding
7,021
j
the
'
Transactions for Account of Members*
4. Total Round-Lot Sales:
>3hort sales
fere
Settlement of the wage
the
tons,, against
■
\ ' \, Zinc
Interest centered in the
situation that threatens to
completed its survey.
The domestic price
situation in
^
Sales
worse.
5,202
month previous.
•/'
appeared
until
During the week
2, trading for the account of Curb members of
913,410
13.74% of the total trading of 3,324,875 shares.
Tutil Round-lot Slock
Carteret), and
dispute at leading brass mills may
not end, some
operators believe,
Exchange, member trading during the
9, amounted to 540,590 shares,
that Exchange of
2,163,680 shares.
country (at
be
the
a
refinery on.the active list
fairly encouraging a fort¬
night ago, has taken a turn for
17.32% of the total trading of
9,895,830 shares.
or
Mar.
total volume
to
on
On the New York Curb
Week ended
amount was
totaled
tons
the movement of the
metal to con¬
will be even smaller than
at present.
The labor situation
at the brass
mills, which
the Exchange of
5,633,730 shares,' This
trading during the week ended Mar. 2 of
member
day, of
single
sumers
being'published weekly by the Commission.
Short sales are shown
separately from other sales in these
figures.
Trading - on the Stock Exchange for the account
of members
(except odd-lot dealers) during the week ended
Mar. 9 (in round-
lot transactions) totaled
of the total transactions
a
on
prices
the
the
in New England average 0.225c.
per pound above
Effective March 14, the
.export quotation for
open
market
and
is
bafeed
Atlantic
the
copper
on
sales
in
seaboard.
Delivered
refinery basis.
reflects
prices
the
obtaining
in
foreign market reduced to the f.o.b.
refinery equivalent, Atlantic seaboard.
On f.a.s.
transactions we deduct
lighterage, etc., to arrive at the f.o.b.
0.075c, for
refinery quotation.
Quotations for copper are for
the ordinary forms of
wirebars and ingot bars.
For standard ingots an
extra 0.05c.
for
up,
cakes
0.125c.
depending
discount of
per
up,
on
0.125c.
depending
pound
is
on
charged; for
slabs
0.075c.
up,
and
weight and dimensions; for billets an
extra 0.75c.
dimensions and
quality.
Cathodes in standard sizes are
sold
per pound.
at
a
'
Quotations for zinc are for
ordinary Prime Western brands.
Contract prices for
High-Grade zinc delivered in the
East and Middle
West in nearly all instances command a premium of lc.
per pound
_
not
less
than
over
lc.
over
the
month.
Quotations for
lead
"E.
&
M.
J."
reflect prices
the
current
average
for
market
for
Prime
Western
Prime Western for the
but
Number
of
Customers'
short
sales.
♦Customers'
other
sale3
Customers' total
Dollar
value—
common
lead
only.
previous
sales„—_
Round-Lot Sales by DealersNumber of Shares:
L "
Short salesj—
tOther
Total
sales-
sale$.
rou
Round-Lot Purchases by Dealers—
Number
♦Sales
ported
of
shares
marked
with
—_
"short
"other
exempt"
345,
are
re¬
sales."
tSales to offset customers' odd-lot orders
and sales to
liquidate
is lf^s
obtained for
sales—
Shares:
o
tv><>n
"other sales."
round
a
long position which
lot
are
reported with
1850
pared to 1,559,700 tons one week
ago, 1,351,700 tons one month ago,
and 1,774,900 tons one year ago.
"Steel" of Cleveland, in its sum¬
products
adjustment to improve supplies. Group indexes for farm
and foods were 1.4% and 1.0% respectively above late February
1946 and aproximately 4J/2% higher than in the corresponding week
Statistics
Weekly Coal and Coke Production
production during the week ended March 23,
exceeded 13,000,000 net tons for the third successive week, J. A.
1946
March 31. Since
weeks, both
there
1927
1943. '
'//y /-V.
During the week ended March 23, 1946, approximately 13,175,000
tons of soft coal were mined, as compared with a revised estimate
of 13,210,000 in the preceding week and 11,817,000 tons in the week
ended March 24, 1945.
The cumulative total of bituminous coal out¬
put during the current fuel year from April 1, 1945 through
23, 1946 was about 571,634,000 net tons, which was a decrease of
below the 598,996,000 tons mined in the comparable portion of the
report:
preceding fuel year. The two Southern Appalachian Districts
The
and 8, in Virginia, southern West Virginia, eastern Kentucky
Tennessee,
16, 1946, as
northeastern
ended March
mined about 3,998,000 tons in the
compared with about 3,968,000 tons
mary,.
commodities other, than farm
kets
March
4.6%
Nos. 7
and
week
in the
the comparable week of
1945, through
districts as of
163,021,000 net tons, which was a decrease
preceding week and with 3,514,000 tons in
1945.
During the current fuel year, from April 1,
March 16, 1946, the total cumulative output of the two
most
valing
for the
Statistics' wholesale price data,
fair
average.
coal
shipments would close some
general, the prices
primary markets; In
part, represent prices in
manufacturers or producers or are
those charged by
are
those pre-
weekly index is calculated
designed as an indicator of week
commodity exchanges. I : The
on
of
of
one-day-a-week prices. It is
week changes and should not
from
March
compared with about 1,276,000 tons in the preceding week and with 1,203,000 tons in the com¬
parable week of 1945.
Anthracite production during the current fuel
from April 1, 1945, through March 23, 1946, totaled 54,689,000
tons'which was a decrease of 9.0% below the 60,104,000 tons mined
approximated 1,301,000 tons, as
23, 1946
V
,
<
,
300
of
March
PRODUCTION OP
v
1
■
Bituminous
Total
Daily
>>'?
tSubJect to current
■>'/?"
■
--H.
"(.
Anthracite—
*»nnn.
•Total incl. coll. fuel
tCornmercial produc—
133.9^131.1
,127.0
—-0.2
+ 1.4
109.4
120.1
109.5
109.2
1108.3
104.5
—0.1
+
120.1
120.1*120.1
118.2
leather
and
products^
WEEKLY
current
1,078,800
weekly
BY
STATES, IN NET
TONS
products
and Oklahoma-..—-—y
Colorado^——
i
——
North Carolina—
»
Kansas
Missouri.—.—,——.
Kentucky—Eastern
Kentucky—Western—
567,000
ob'/.uuu
33,000
-.V-1,33>°9<}
138,000
—
Pennsylvania
.
Cotton
goods^
Other building
V
476,000
92,000
.
.
—
;
Virginia—Southern
Virginia—Northern—.
190,000
1,000
•
y."
'
?
;
C
2.000
33,000
613,000
2,803,000
>/.
132.000
3.000
v
?
:
147,000
405,000 f}
25,000 &£
133,000
370,000
'
28,000
2,098,000
2,296,000
1,130,000 y;
187,000
yy *'«
:
:
,v>
1,075,000
197,000
1,000
13,060,000
tons.
Wholesale
Week Ended March 23, Labor
<
^
- '
in
Depl. Reports -
unchanged on the average dur¬
ing the week ended March 23, 1946, as lower prices of agricultural
commodities offset higher industrial prices, the. Bureau of Labor
Statistics, U. S. Department of Labor, reported on March 28.
At
108.4% of the 1926 average, the index of commodity prices prepared
by the Bureau, was 0.9% above a month ago and 3.1% higher than
a
year ago says the Bureau's advices which stated that since the
end of hostilities in mid-August 1945, average primary market prices
have increased 2.7%. The Bureau further reports:
. .■Vy/'-v
"
Farm Products and Foods.
Prices of farm products and foods
decreased slightly (0.2% and 0.1% respectively), chiefly because of
lower prices for fresh fruits and vegetables and eggs. - Grain prices
averaged fractionally higher with increased prices for rye and lower
prices for oats. Prices of live poultry rose with seasonally short ship¬
ments and expectation of the removal of price control.
Lamb prices
were up with small supplies of better quality.
Quotations for steers
declined, Reflecting reduced demand from large packers. Among the
fresh fruits and vegetables, prices of white potatoes decreased with
prices remained
demand for the
Egg prices
creases
+
4.2
+1.8
+
5.7
+ 0.9
+ 2.5
0
+0.8
+
+0.1
+0.9
+2.6
Grains
0.3
0.1
0.1
Decreases'''':^y/>y> V
'■
.
^■.
may,bef^ allowed to continued
"An unusual number of projects
has come out in the past week
and contracts for -structural steel
:
quality.
old crop, and sweetpotatoes were lower be¬
Lemons, oranges, and onions were higher.
dropped below ceiling in some
Black pepper prices rose
in supply.
,
the
of
consummation.
of the present
voluntary quota system until its
effects are more fully apparent has
been approved by the Steel Indus¬
try Advisory Committee, instead
of
restoration of a system of
priorities. The cdmmittee favors
an attempt to meet steel demand
0.1
"Continuance
from
tion to pass
cities with seasonal in¬
50% on an OPA ceiling
and / emer¬
business
universal lack of knowl-&
dustry to start whittling down its
to how long the coal strike
will, last,is the factor which will huge carryovers and get its house
in order for a more normal dis¬
cause a small loss in steel produc¬
tribution o^steel products, has al¬
tion or a drastic curtailment from
which it would take weeks to te- ready been! impaired and will be
further adversely affected,
as
orders on to concerns
and also to sugr
able to fill them
t acceptable
plants are unable
"In
if
substitutes
g e s
approaching record peacetime levels and
to enter |a period of
"The
to meet orders
specific type.
*
.
situa¬
general the delivery
change/mills being
through the year on most
tion shows no
booked
products, with consumers pressing
for delivery and seeking to place
more tonnage in an effort to gain
books for next
producers are not;
booking orders beyond December I
and those operating under quota
plans making schedules no further
than the middle of the year. How¬
position on mill
year./Most
coveri-y^^Myyvyy
■ -if ■ ■51
companies this, week in f "Steel shipments during March
• conserve. fuel
for the were probably the highest than in
blast furnaces are curtailing steel- any month since the end of the
war.'- This«4id not reduce back¬
making operations. Others expect
however, because towards
to hang on- at present levels for; logs,
the. latter part of the month and
at least two weeks. In the aggre-'
extending into this week, new or¬
gate,; however, steel production
ders
were
somewhat ahead
of
will probably drop sharply by the
end of next week if there are no shipments. - -Having suffered the
penalty for not getting on steel
signs of a coal agreement.
mill books,"long before the steel
"If the strike is short-lived the
strike occurred, customers in the
protective - curtailment of steel
future- will place as much tonnage
output will represent an unneces¬
as possible Tor. shipment in order,
sary loss in output,- If the strike
"Many
order
new
gencies by an arrangement, with
Civilian Production Administra¬
which further .adds:
edge
new
prevent their
Expecfedllo Drop Sharply
"With steel backlogs
than in' recent
hastened by fear
limitation acting to
have; been larger
0.3
Other -fapn products-
0.5
foods——J——'—
proceed and some industrial
essential char¬
construction of an
acter
weeks, perhaps
2.7
0.1
poultry—
may
production' which will
probably surpass any-other yearly output except during wartimes,
me .industry this week faces its worst 4ilempia," states "The Iron
Age," national metalworking paper, in its issue of today (April 4),
102,000
;>;•
33,000
•
13,210,000
lignite
*Less than 1,000
of poor
+ 1.1
0
+ 1.0
projects will be suspended,
though various classes of build¬
ing will be allowed to proceed.
Bridges and some utility.. work
will be excepted, military con¬
struction and veterans' hospitals
for a
,
on
slow
"*
with the industry ready
13,060,000
11,912,000
tlncludes operations on the N. & W.; C. & O.; Virginian; K. & M.; B, C. & G.;
and
the B, & O. in Kanawha, Mason, and Clay counties.
tRest of State, including
the Panhandle District and Grant, Mineral, and Tucker counties. ' §Includes Arizona
cause
and
Steel Production
y" *
<
•
1,000
: 2,300,000
1,082,000
Wyoming__ul_—.
SOther Western States.
30,000
61,000
172,000 :y
:
147,000
25,000
Washington———
v
2,937,000
1,000
>.y: 408,000
Virginia—
Primary market
+ 2.1
o
substantial revisions of
schedules / and
many
Sec
-y34,000
«
825,ooo'
867,000
3,110,000
174,000
(bituminous) ——.
and Oregon.
+ 1.2
—;—17' Iron and-*teef5———
0.6 Cereal, products'
i
Other
/ s'-i.-'ii 36^.U'»"
•
42,000 :g:
(bituminous & lignite)——
Total bituminous &
yy
+ 0.4
IN SUBGROUP INDEXES FROM
MARCH. 23, 1946
' .
0.3
'Ui/':,''"-
:y;/ 1,006,000
1
48,000
91,000
'
♦West
0
5.7
+ 0.6
99.4
.
.
+
—0.1
r.
100.3
101.6 -101.1
o
t:<n\
>>:
+ 3.5
malerials_J—___l—
Livestock
43,000
150,000
<"
'<■
3,000
28,000 •> :
Dakota (lignite)
Tennessee
iWest
102.6^ 102.2
101.9
Cement
565,000
;
,
30,000
121,000
1,146,000
-
57,000
3,000
Montana (bitum. & lignite)^-—
New Mexico——,-^
.—;——
Texas
103.0
+ 1.8
>
+ 2.8
Increases
1,502,000
•
474,000 " ;
—
V';>/.c;Vy
550,000
-
'
Maryland.——..—
North & South
-
+
+ 0.2
103.4^101.8 y»:o.yy£
102.0
Fruits and vegetables-^—
,
-'1,165,000
——-
Michigan
99.7 \
104.3 : 103.8"
116.0
94.9
2.0
+ 0.2
1
4.6
MARCH 16, 1946 TO
authorized
1,653,000
1,598,000
—
and
95.4 ^ 94.4
95.4-..
121.4^119.7
99.6 y 98.5
121.0
PERCENTAGE CHANGES
89,000
174,000
.112,000
159,000
1,000
100,000
140,000 »
1,000;
IndianZZZZZZZZ:
Iowa^.
i?;
101.1
cause
structural / mill
Mar. 17, 1945
357,000
/d'y!>y. 7,000
447,000
7,000
-
7,000
Sl&0
Georgia and
95.4
—
103.0
—*
than farm
and foods
COAL AND LIGNITE, y
Mar. 9, 1946
1946
460,000
Alabama
ft
96.0
108.4
than farm.
:
i.
products
railroad carloadings and river
receipt of monthly tonnage reports from
returns from the operators.) ;
.
Week Ended-
Mar. 16,
'
121.L: 120.2
116.9"
96.0- 96.0 ' 94.9
108.3
108.0 -106.2
101.9
will
estimates are based on
State-
Arkansas
ously.
+ 3.2
—0.2
123.3
:
95,4
materials—120.9
Semi-manufactured articles.
100.3
Manufactured products
104.3
and are subject to revision on
district and State sources or of final annual
A
>/:/•-O-.sv
Raw
891,800
1,357,900
coal shipped by truck from
\
PRODUCTION OP BITUMINOUS
ghMtments
1
83.9
104.3
Miscellaneous commodities
All commodities other
134,900
106,500
106,200
washery and dredge coal and
("Excludes colliery coal.
'The
+ 0.5
85.6
105.8
.
♦Includes
ESTIMATED
99.2-
85.4
107.8
85.4;
,96.0.
108.4
Housefurnishings goods.,
*
t
101.9
107.7
'
of min¬
/ "Limitation of construction to
aid the national housing program
4.6
+
short of resumption
ing within a short time, steel pro¬
duction would be hampered seri¬
.';'+ 1.6
102.4
85.4
•
allied products—
All commodities other
o
+1.3
mate*ials_^—ii^i^i-,; 123.6:
Chemicals and
:
+
i.o;
0
107,9
products
lighting materials—
and
Metal and metal products—
PENNSYLVANIA ANTHRACITE AND COKE
Tons)
:>d';'>V''iyfVdyy;-••
"
Week Ended
y
Calendar Year to Date
Mar. 23,
Mar. 16,
Mar. 24, f: Mar. 23, ; Mar. 24,
Mar. 27,
1946
> 1946
,
1945
1946 A.',^945
1937 _
1,301,000 1,276,000 1,203,000 i3,952,000 12,696,000 12,140,000
1,249,000 1,225,000 1,155,000 13,393,000 12,188,000 11,533,000
UnltediVStCa°tesir__operations.
108.2
133.1
_____
/
;;vy>y.y-
case,
Mar. 23, 1946, from—3-16
2-23
3-24
1946 ^ 1946 ; 1945
0
+0.9 +3.1
108.4
Textile
adjustment.
3-24
1946
1945
107.4, 105.1
1946
r.
108.4
Hides
Fuel
1946
> 2-23
3-9
3-16
1946
-
products.—132.9
•■>."■ (In Net
J:'"- '
'
Foods
PRODUCTION OP
ESTIMATED
•
-------
-
^
♦Revised.
:
•
commodities
All
Farm
Building
■
'
'
,
3-23
BITUMINOUS COAL AND LIGNITE
-(In Net Tons)
..
j;:
■"-7:.:, ■ •.
week Ended
• ■ -—Jan. 1 to Date—
;-j'.;
Mar. 23,
"Mar. 16,
Mar. 24, ^ fMar. 23, * Mar. 24,
coal Ft, lignite—
1946
:
1946
1945
<1946 •> ; 1945
TnclJdS minefuel? 13,175,000 13,210.000 11,817,000 147,554,000 141,298,000
average
2;i96,000 2,202.000 : 1,970,000 2,105,000 1,973,000
UNITED STATES
'
'
Week of 1945.
ESTIMATED
1
,
Commodity group-
:
in the
the Interior,
beehive coke in the
showed a decrease
tons when compared with the output for the week ended
16, 1946; and was 28,700 tons less than for the corresponding
plants in a week, while others
might be able to continue operas
tions up to a month, • should the
strike continue that long.
In any
Percentage changes to
year
comparable portion of the 1944-1945 fuel year.
The Bureau of Mines, United States Department of
also reported that the estimated production of
United States for the week ended March 23, 1946
iv, '
CHANGES IN WHOLESALE PRICES BY COMMODITY.GROUPS
■;
y
FOR THE WEEK ENDED MARCH 23, 1946
•
,
i'■'
weeks being a
Thu6, * cessation of
about two to three
-b
of Labor
Bureau
to
be compared directly with the
estimated at
monthly index. ; y •
»
u
1
V'C
8.7% below the 178,493,000 tons mined in the comparable portion
The following tables show (!) indexes for the past three weeks,
the 1944-1945 fuel year.
;
$■'">/> V>1''■ for Feb. 23, 1946 and March 24, 1945, and (2) percentage changes
Pennsylvania anthracite production for the week ended
in subgroup indexes from March 16, 1946 to Margh 23, 1946.
•} :
March 16 was
of the iron and steel mar-,
April 1 stated in part as
on
';'v '
L
advanced 0.1% during the week, in general re¬ follows: uv
/'Effect of the strike of soft coal
flecting upward adjustment of OPA ceilings. Prices of print cloth
rose sharply following ceiling increases, ranging from 21/2
cents to miners is difficult to gage, de-r
5 cents per pound, for almost all cotton textiles and yarns to offset
pending on length of the strike
higher labor and raw cotton costs since August 1945. Ceiling adjust¬ and size of coal inventory at vari¬
ments also were reflected in higher prices for pig iron, steel pipe,
ous steel plants. The latter varies
but in some cases only a week'$
and builders' hardware. The group index for non-agricultural com¬
modities was 0.9% higher than in late February and 2.6% above the
supply is on hand. From this low
corresponding week of last year.
*
•
,
'
point stocks of coal reach 30 days*
supply or more in a few cases,
The Labor Department included the following notation in its
products and foods
occurring in December,
■
:^>,;y.y :> ;
Prices of all
Commodities.
Other
Solid Fuels Administrator, announced on
have been only two other 13,000,000-tons
Krug,
1945.'-/,;'
of March
Bituminous coal
to
ever,
to
orders in hand are sufficient
mills well into next
occupy
year,
is J
especially if production
interrupted again."
''
,
A
1
Hinerfeld Quits N. Y.
Bank Department
:
Benjamin Hinerfeld has re-]
signed, effective March 30, as]
Special Deputy Superintendent ofl
Banks in the liquidation bureau]
of the Banking Department, it was]
announced on March 29 by Elliott]
to be in line fpr their percentage V. Bell, Superintendent of Banks]
continues for four weeks or more
of available< supplies.;!;>
J;;-.; Mr.. Hinerfeld will devote himseli]
with ho signs of, an agreement, the!
"The steel industry has been ad¬ entirely to his various business in¬
industry will face a sharp and
vised. that -production directives terests. A former cashier of Com"]
drastic curtailment which would
will be issued for about 600,000 munity State Bank, Mr. Hinerfelcj
take
the operating! rate y below
tons of products for export other has been employed in the liquida¬
50% of capacity. Such a Situation
than tinplate, for which a 155,000 tion .bureau of the Banking De-|
would be another blow to recon¬
ton program
has already been partment for 15 years. As Specia1
version and to the forward move¬
ment
of the heavy
steel demand
established."
!
Deputy he has
,
assisted the Super
Steel intendent of Banks in liquidating
Institute on Monday of this week the American Union Bank, Time
announced
that telegraphic re¬ Square Trust Co.* Bank of Europ<
coal operators for a speedy settle¬
Trust Co., Globe Bank & Trus]
ment of the mine impasse.
The ports which it had received indi¬
cated that the operating rate of Co., International Madison Ban)
two
demands—a
welfare fund
steel companies having 94% of the; & Trust Co., the Bank of United
supplied by the operators and
steel capacity of the industry will States, Banco di Napoli Trust Cc
controlled by the union; and the
be 89.4% of capacity for the week and 10 Italian and Japanese bank]
organization of supervisory forces
ihg agencies.
"* •
represent the hurdles for
a4 beginning April 1, compared with
Mr. Hinerfeld is President c;
88.5% one week ago, 76.7% one
rapid ending of the strike. They
month ago and 96.9% one year Purity Drtig Co., Inc., of Passaid
are also the points on which some
This represents an increase N, J., manufacturers of pharina]
of the old-time bitterness between ago.
ceutieals;
Treasurer
of
Witt ^
the two factions may be generated of 0.9 point or 1.0% from the pre¬
The operating rate Bros., *Inc., clothing manufactuij
and thus make the job of the U. S. ceding week.
Conciliator more difficult.
Re¬ for the week beginning' April 1 ers, and Secretary 'and Treasure
The
production now existent. . . ..
"There is no optimism among
and
gardless of how soon the strike
is
settled, the ability of the steel in¬
is
American
Iron
and
equivalent to 1,575.600 tons of
ingots and castings, com-
steel
lof nillcrest Hosiery MiH's/TffC., t
Durham, N. C.
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4478
Volume 163
1851
Total Loads
Revenue
Freight Car Loadings During Week
Ended March 23,1946 increased 4,724 Cars
Southern District—
/Loading of revenue freight for the week ended March 23, 1946
804,606 cars,' the Association of- American Railroads an¬
nounced on March 28,
This.was a decrease below the corresponding
cars
increased
'
*
below the preceding week,,
cars
'
sponding week in 1945. '
above the preceding
.
362
1,713
1,546
1,713
1,555
3,605
3,591
362
287
215
278
240
115
112
738
612
1,655
1,683;
98
4,083
v
4
•
,
increase of 303 cars
•
-
"1945
■
■V
;
.the
947
861
4.362
4,391
29,825
28,753
27,143
14,503
18,699:
27,627
26,410
24,149
10,214
12,688
303
212
124
318
414
3,784
3,546
1,438
3,154,116
786.893
-
Week
March
of
Week
March
of
9
March
of
Week
'
!•
W
23
785,195
J—
the separate
During this
.
f
"
■
vf
*
I
'
'r
•
*'•<
TOtal
r
1946
.
,
36
Delaware &
4 627
Detroit <fc,Mackinac——.
" 5.053
'
"
i 314
_
l_—
, 205
2,406
Lehigh Valley.
.
-
1945
1,712
14,986
;
.
)
L423
17,210
,
2,340
2,163 ■?:
7,950
2,114
12,533
248
.
2.493
15,899
:
.
-12,675
,-9,018Vv ■ 218
7,474
-
42
178
1.544
4,371
' / 2,043 G" 1,599-
332
•
3,418
"
..
164
1,864
•
4,602
1,542
2,831
1,821
8l473/1-.;.:^-;8,321v.r^;12,213
■
-
6,381
l
'
—
Lhies——..G
N. Y;, N. H. & Hartford".--.—.—.—
New York. Ontario & Western
New York. Chicago & St. Louis.
N. Y., Susquehanna & Western
Pittsburgh & Lake Erie.^
; Pere
Marquette._-_n_L—.—
Pittsburgh & Shawmut..—.——.—...
.Pittsburg. Shawmut & North.........
Pittsburgh & West Virginia-——Rutland_.'£_.-.—I—
——...
New York Central
2,218
1Q.623
2,503
49.094
11,066
„
:
•
Chicago, St. Paul,. Minn. Sc Omaha
3,663
3,620
3,151
4,667
4,440
Duluth, Missabe As Iron Range
Duluth, South Shore & AtlanticElgin, Jollet As Eastern
1,231
1,025
1,213
316
263
&
Cambria
"
'
10,281 .....
"
...
8.2631-
520
G
a""'518
.
'.
■
"1
"
i 422 ?
185
319 G
' vv 957.
378-
920
:
364
6,655
11,834
"
v
3,697
157,966 V 214,636.,
688
13,767
:• 95,665
256,014
40,557
3,022,
2,882
24,528
1,683
1,542
9
6,464
17,421
596
1,668
1,464
45,072
70
* 651
830"
1,635
1,640
6,182
6,411
: 4si
1
...
*———
4"0
>
31,662
519
v:
.:
107
5,108
6,221
1,147
v
1,013
'468
55
7%
of
3,133
ed,
showed
3,161
8,808
10,063
;
295
-
9,757
Spokane International
i
...
Spokane, Portland Sc Seattle——.
}
'
no
>
'>•
323
v
-i
,
5,042
5,370
219
101
356
699
1,881
2,532
2,562
/ 4,113
84,533
1,942
,
TotaL
;; 85,001
66,536
73,021
:
83,760
.
Atch., Top. Sc Santa Fe System-
22,527
Alton.;
24,724
2,998
34
211
103
,
,
.
.
"
10
119
65
Bingham Sc Garfield
Chicago, Burlington & Qulncy.
Chicago As Illinois Midland
Chicago, Rock Island St Pacific^
Chicago As Eastern Illinois
V'Vvv
2,831
5
15,00G
9,532
'
490
3,247
I/:': 7
459-
1,595
1,237
1,837
•
w-'
36
5,649
1,743
2,037
1,662
2,157
2,516
79.889
81,758
76,961
62.400
66,987
15,413
14,405
27,783
33,934
19,296
19,621
3,7.35
4,851
4.188.
4,022
4,736
1
■
11,959
18,354;
12,176
3,064 *•
874
—
11,956
12,477
12,965
—.
•2,999
170,967
182,219
10,695
2,831
■i
2,687
3,484
710
647
1,722
3,516
3,255
3,980
6,942
666
523
672
40
City.
54
836
1,414
1,564
2,119
1,645
2,349
641
158,291
15,54"
.703
■
829
2,109
2,574
Missouri-Illinois.....
1,032
928
958
Nevada Northern..,
1,436
1,112
1,860
108
623
757
587
Union——,——
(Pacific).—;
9-
.1
11
"
Southern Pacific
27,525
9:
29,362
290
881
••■V-
381
14,596
Vf
';
536
v
1,771
2,004
2,250
125,451
117,961
0
187,420
379
■481
v:,!i; 534
7,246
>•7,445
2,392
2,722
2,273
3,036
1,844
3,576
4,043
1,199
2.871
City Southern
Louisiana As Arkansas..
•
902
1,787
3,437
3,367
'2,860
2.3J4
2,b4j
313
1,211
1,198
355
:
1,258
195.
130
188
427
4°?
5,396
6,787
5,135
4,350
"5,019
16,927
16,153
15,604
14,549
20,514
...
Missouri Pacific—
149
_
3t. Louis-San Francisco..
>:
106
9,937
95
196
7,515
8,283
8,792
5,106
8,014
12,227
5,662
5,804
5,483
6,826
8,311
,1- 9,672
Louis-Southwestern.
2,667
3,720
3.049
Texas Ac New Orleans—...
9,362
11,072
Texas Sc Pacific..:—
3,985
5,364
...
Wichita Falls Ac Southern.
87
B Total—
:
Atlantic
Gulf
Ry.
Coast
only
322
Line
in
83
68
25
21
63,695
74,447
68,758
60,759
73,578
28,198
28,605
13,468
•'•
^Includes
and
'•,
'
NOTE—Previous year's figures
Norfolk & Western—
22,429
21,665
21,789
6,811
9,822
4,480
L817
3,503
♦
54,304
-
54,8.74
22,096
$15,528,000, while 14
was
increased
than
more
$5,-
League
are
located in
Rhode
Island, Massachusetts, New York,
Jersey, District of Colum¬
bia, Florida, Ohio, Indiana, Illi¬
nois, Michigan,- Minnesota, Mis¬
souri, Oregon; Washington, and
also
.
Midland
Oklahoma
V;/
'
.•
-V''''
■.'•'
Valley
Ry.
and
City-Ada-Atoka Ry.
i'VM''.."1
Kansas
in
1945
■>•• v
1
revised,
:
!
.
California.
Lumber Movement—Week
Weekly Statistics ofPaper board liiduslry
"
27,299
Ended March 23, 1946
We give herewith latest figures received
by us from the National
According to the National Lum¬
Manufacturers
Association,
lumber; shipments of 435 mills re¬
porting to the National. Lumber
Paperboard Association, Chicago, 111., in relation to activity in the
J. f/■;'»'B
paperboard industry..f.K
The
members
of
this
Association
industry, and its program includes
represent
83%
of
the
1
ber
2^....
total
Trade Barometer
statement each week from each
a
cates
the
activity of the mill based
are
advanced to equal 100%,
on
so
Industry.
new
These
for
orders
these
of
Of
the
amounted to 88%
Orders
Received
,
Remaining
5—.......
Tons
Tons
mills
were
Unfilled
reporting mills
of stocks.
For
reporting softwood .mills, unfilled
orders
Unfilled Orders
Production
Tons
9.8% above
the
18.1% above production.
order files
REPORTS—ORDERS, PRODUCTION, MILL ACTIVITY
1946—Week Ended
Jan
operated.
that they represent the total
-
STATISTICAL
Period
the time
were
week ending
March 23, 1946. In the same week
production
member of the orders and production, and also a
figure which indi¬
equivalent to 32 days'
are
Percent of Activity
production
Current Cumulative
176,346
111,967
526,891
75
75
Jan. 12__———143,366
144,482
523,672
94
134.265
142,142
143,550
143,101
507,651
93
88
499,955
94
89
178,590
150,634
516,776
95
90
169,482
152,066
529,767
97
91
139,681'
149,794
516,211
94
92
139,903
155,381
500,507
97
93
198,985
161,122
533,794
98
93
178.443
158 229
551.081
99
94
the
at
current
rate,
85
•Jan. 19—
:
.....
Jan. 26—
.
——
Feb.
2
Feb.
9——_—
1.,—;
Feb. 16—
Mar.
;
2
9
——
—
157,227
167 243
538,572
100
164,267
539,100
99
and gross
34
of
not
Notes
Unfilled
orders
of the prior week,
necessarily equal the unfilled
reports,
orders made for
ments of unfilled
orders.
or
orders
at
filled from stock,
plus orders received,
the
close.
less production,
Compensation
for
are,
equivalent to
year-to-date, shipments
reporting
ceeded
ders
95
'
stocks
days' production.
For the
94
169,355
13,974
59,294
showed it. is stated
New
Mar. 16—,—
31.795
4,441 :
24
000,000 each. The over-$20,000,000
home financing institutions in the
United States Savings and Loan
23
"
1945
others
46
43
RR.
1944
lX'' jA
in
'
)'28
Weathwford M. W. As N. W—
in
A report made up
financial
statements
the
each.
1,921
5,511
3,490
'
454
....
';
5,463
2,532
Mibsouri-Kansas-Texas Lines—
&
of
resources
League, located from Boston to
Los Angeles, now top $20,000,000
A year ago there were only
20 of them and this was the larg¬
est number in this size group since
the close of 1930, Morton Bodfish,
Chicago, Executive Vice-President
of the League, reports that the
largest gain by a single institution
fj- 347
5,320
1946.,'
total
that 29 member institutions of the
"v
/■V 313
:■
of the
March
on
tIncluded
throughout the
constitute $957,387,000,'
gathered by the United States
Savings and Loan League as of
Dec, 31, 1945, and issued by them
5,32]
•
Mar. 23
District—
5,070
from;
J
103,254
•
'
and co-op¬
numbered
cing business.
2,412
.
dozen
a
now
11%
or
which
the nation's thrift and home finan¬
17,118
'•"•'••
3,024
76,577
.
1930's
$20,000,000* savings
associations
banks
than
less
0
2
over
loan
erative
15,511
11,901
589
118,604
TotaL
■V;V" 0'"
9,228
.
16,520
0
14,994
........
vG
.
27,808
roledo, Peoria Sc Western-
Oklahoma
1945.
Savings Loan Assns.
and
864
^uanah Acme As Pacific
of
Their traffic volume was
below January and 57.4%
The
9C
509
v
North Western Pacific
Feb. 23..
Chesaneake St Ohio—...
—-—
of
2,282
2,899
■:
905
3t.
drop
Growth in Resources
14,523
4,732
—
Missouri As Arkansas
a
895
772
u
and
below .February,
13,151
ii 2,877
Denver St Salt Lake.
Mar.
175,991
January
hauled about 2% of the total ton¬
63
20,675
3,235
Denver As Rio Grande Western
Southwestern District—
tonnage report¬
of 15.8%
decrease
a
-4,677
19,033
Colorado Sc Southern
7
'
f 5,063
below
petroleum
for about
22.5% below February, 1945.
Carriers
of
iron
and
steel
nage.
21,580
3,676
.
total
the
51.4%
••
212
i
Transportation
of
products,
accounting
47
233
.22,695
'
*
i*
ruary, 1945.
4,001
12
18,003
; 520
501
..
"
2,483
1,784
■
14,818
Total
12,466
"
2,779
Maryland—.——
Virginian
11,026
584
•
,13,663
->
5,099
3,839
1,371.-i.iod
?
4,935
.163,805
236
"
1,830
5,795.
••
,
9,907
'• • 12
28
—
42,9"2
(Pittsburgh)
Pocahontas
10,726
.
f ;
2,062
8,271
7,829
—
,y: 818■
614
;r'285'
254
6,142 v
.
—
115
4,475
figures
Reading Co
TotaL.
581
10,349
375
/:>
;•
2,082
2,789
2,2%
7.385
:4,826 V
'*
Llgonler Valley._-<-i_.-^
Long Island.
Penn-Reading Seashore Lines—
Pennsylvania .System.
—
Western
.
7,875
5,446
i 984.
Cumberland & Pennsylvania^
Union
763
8,554
445
The volume in this
decreased 4.5% below
January and was 7.0% below Feb¬
category
5,017
H.437
1,061
'2
—
1
495
9,236
eral freight.
2,112
Utah.
average
transported in the month
hauled by carriers of gen¬
Minn., St. Paul Sc S. S. M
'3,552
/V 14,441
-C,
5.182
—
Ind ana
J
8,216
464
Green Bay & Western
uake Superior Sc Ishpeming—
20,782
2,946
6,387
-
1
Central R. R. of New Jersey.,
Cornwall---
16,265
icofjc
1,235
407
5,923
Erie—
624
v
56,425
'
6,7631':/
4,942
,
53,864
1,025
7,556
Wheeling St Lake Erie—
Bessemer & Lake
G;
Dodge, Des Moines Sc South
Peoria Ac Pekin
.
151.9.
was
3,859
Northern Pacific
the
of
monthly tonnage of the reporting
carriers for the three-year period
of 1938-1940 as representing 100,
nage
15,301
11,106
Great Northern
basis
the
on
25
,
-V
927
3,904
———
Allegheny District—
Akron, Canton & Youngstown
Baltimore &Ohio^—.^_^.
37
'
-47,315 :
162,107
Wabash—.—
14,571
3,681
Ft.
aggregate of 1,542,484
February, as against 1,~
tons in January and 1,-
an
The ATA index figure, comput¬
ed
3 2
274
6,351
5.9d7
3,040
48,756
——
Montour
15,006
11,510
4-'II
:-K•
Monongahela.—.—
16,309
2,642
13,284 .Vt^.15,473 •^•19,251
| 3,885 \ - 8,128 .
♦
• 167 ,; ;
2 032
_
8.639 -*
'
~
..,
133,623
20,132
607
1,079
-4.896 V',
•
13,453
4,218
f
~
3,077
Lehigh & New England_-.^.-u—.^
Lehigh & Hudson River——
'
415
li,895
Erie
1946
$;:.$$•.?<37 'v't^"59
2,036
2 529
•
w
7,453.
165
.
,275
^
Iron ton—.—;—
Grand Trunk Western
114,916
2,621
Litchfield St Madison
2,014
1944
1.120
•
8,097
Delaware, Iiackawanna Sc Western....
Detroit & Toledo Shore Line
122,051
21,476.
Connections
Leaded
-
1,212"/"L121
Louisville—
Central Vermont..——
&
131,982
!
810
2,567
Kansas
/Received from;
"
242
'
3,200 •; 2,721
• /
7,213 •?
6,966
8 001
...
-
Toledo
1,448
*
tK. O. St G., M. V. As O. C."Af-A
G "
Total Loads
.
1945
.
1112
Detroit,
28,308
805
1,061
Gulf Coast Lines..
278
4,035
.
'
*
•;
388
.
Bangor St Aroostook—.—
25,824
810
;L 145
International-Great Northern.
CONNECTIONS
23)
/
.
Revenue Freight
Castern District-
Ann Arbor
Boston & Maine
23,040
146
15,491
Western Pacific.
>
Railroads
Chicago, Indianapolis St
Central Indiana.
24,955
37
in
666,535
714,661 tons in February, 1945.
9,620
21,106
Burlington-Rock Island
|
LOADED AND RECEIVED FROM
(NUMBER OF CARS) WEEK ENDED MARCH
;.
'••••
9,442,747
9,242,230*
8,923,417
FREIGHT
REVENUE
'
8,812
carriers
Approximately 87 % of all ton¬
Chicago Sc North Western.
Chicago Great Western
Chicago, Milw., St. P. & Pac...
carloadings for
railroads and systems for the week ended March 23, 1946.
period 67 roads reported gains over the week ended
March 24, 1945.
,10,340
208
from
in
was
is a summary of the freight
The following table
1,359
12,793
630
141,155
Union Pacific System—..
'
Total.-,..
1,836
1,639
9,986
.683,
'
states showed these carriers trans¬
Northwestern District—
777,578
816,741
■;
804,606
780,265
w.'mI
'
16-
of March
1,618
341
11,835
.
ATA
tons
376
,
follows:
ported
493
4,999
966
455
:■.143
TotaL
664
4,218
495
-
12,342
27,251
Winston-Salem Southbound.
259
1,080
462
i444
Seaboard Air Line—.
Southern System..
Tennessee CentraL.
1,001
1,144
trans¬
Comparable reports received by
3,297
1
freight
American Trucking Associations
April 1, which further announced
as
340
' 3,975
...
Illinois Terminal.
1944
3,158,700
—^s'oS'S
~
'
Week
1,229
,
388
below the corre¬
'
■,'••••'•1946
"•••..-•'."•I'
of February-..
163
2,528
...—.
-
■
•
weeks
146
2,484
4,563
Piedmont Northern
reported decreases compared
; 4 weeks of January
33
.
of
decreased
10% below
of last year, reported
and
February
466
of 64 cars below
week,/but-a decrease,of 1,573 cars below
western.
42
1,232
volume
ported by motor carriers in Feb¬
ruary dropped 7.4% below Janu¬
ary
5,417
Fort Worth Sc Denver
•
-
4,213
3,914
79
1,261
^
_
Richmond, Fred. & Potomac
with the corresponding
week in 1945 except the Pocahontas and Southern, and all reported
increases compared with 1944, except the Northwestern and South-
'
471
1,883
Norfolk Southern
corresponding week in ■ 1945.
./ All districts
.'490
Central Western District—
amounted to 13,449 cars, an
Coke loading
5,993
Mississippi Central
Nashville, Chattanooga At St. L...
v
,
week arid a decrease of 7,563 cars
'the preceding
5,223
Minneapolis As St. Louis—.
amounted to 10,316 cars, a decrease
Ore loading
3,731
Macon, Duhlin & Savannah
decrease of 616
increase of 2,052 cars above
corresponding week in 1945.
the
3,958
.
Illinois Central System.—...
•
but an
5,028
•
Louisville 8c Nashville
products loading totaled 41,657 cars, a
Forest
•
.»
Gainesville Midland™^..
below the, preceding week and a
corresponding week in 1945.
above the
t
14,994
Georgia
Georgia Sc Florida
Gulf, Mobile At Ohio
loading totaled
Graiii and grain products
Freight Voume
Dropped 7.4% in Jan.
The
t
10,857
Florida East Coast..
-
43,457 cars, a decrease
decrease of 2,384 cars,
belpw the corresponding week in 1945.
In the Western Districts,
alone, grain and grain products loading for the week of March 23
totaled 29,597 cars, a decrease of 3,378 ears below the preceding week
and a decrease of 311 cars below the corresponding week in 1945
Livestock loading amounted: to 15,851 cars, an increase of 658
cars above the preceding week and an increase of 183 cars above the
corresponding week in 1945.
In the Western Districts alone loading
of livestock for the week of March 23 totaled 12,123 cars, an increase
of 582 cars above the preceding week, and an increase of 128 cars
'
of 4,897 cars
2,542
2,111
778
664
13,523
Durham St Southern
,
-
955
t.
425
309
331
15,013
t
Columbus & Greenville
above the preceding week, but a
:below the corresponding week in 1945, V
^
•:
r.
i
v ;
'
Loading of merchandise less than carload lot freight totaled 125,-j
021 cars; an increase 2,003 cars above the preceding week, and an
increase of 14,618 cars above the corresponding week in'1945. >
,
Coal loading amounted' to 190,058 cars, an increase of 1,589 cars
above the preceding week, and an increase of 22,916 cars above the
corresponding week in 1945. V i /
:
•
5,748
1,031
Clinchfield—
i
;
400
1945
1946
Charleston Sc Western Carolina-,..
I
increase of
decrease of 40,384 cars:
4,724 cars or 0.6% above the preceding week. - Miscellaneous
freight loading totaled, 364,797 cars, ari
i
444
Motor
Connections
15,893
Atlantic Coast Line,
Central of Georgia
the same
12,135 cars, or 1.5%, but an increase above
week in 1944 of 27,028 cars, or 3.5%.
:
v
Loading of revenue freight for the week of March 23,
,
.
Received from
Revenue Freight Loaded
1946
1945
1944
Alabama, Tennessee & Northern-^At). & W. P.—W. R. R. of Ala
Atlanta, Birmingham Sc Coast
totaled
week of 1945 of
Total
.y'Railroads
,
identical mills
ex¬
by 9.1%;
or¬
production
by 10.3%.
Compared to the average cor¬
responding
do
week
of
1935-1939,
production of reporting mills was
delinquent
2.3% below;
and other Items, made necessary adjust¬
|
shipments were 2.3%
below; orders were
5.5% above.
jWir
THE
1852
COMMERCIAL & FINANCIAL
Total
trust Companies
Items About Banks,
$94,657,209
against $102,852,117 on Dec. 31,
1945; holdings of U. S. Govern¬
ment
securities
amounted on
statement was
1946, to $300,499,781
with $324,192,674 Dec.
31; loans and discounts are now
$145,508,342 against $136,793,240
at the end of 1945.
The capital
March
31,
compared
March 31,1946, to¬
$22,000,000, the same as on Dec.
and surplus on
tal
31, 1945.
>
194*3,
and other banks amounted
$875,762,967, compared with
$1,366,233,000 Dec. 31, 1945; in¬
vestments in United States Gov¬
to
profits March 31,
were $4,892,178, as compared
$4,892,178 on Dec. 31, 1945.
with
Commercial National Bank
& Trust Co. of New York report¬
ed as of March 31, 1946, total de¬
The
posits of
of
sets
securities,
$2,960,277,205,
compared
with
loans and discounts
$3,078,103,000;
ernment
$231,352,434 and total as-;
compared with
$244,444,051 and
Dec. 31, 1945. The
changed
$270,073,881 on
cash on hand and due
banks of $43,357,613 com¬
bank held
surplus
$1,315,612,456,
$1,271,694,000.
capital of
$111,000,000, un¬
from Dec, 3i, 1945. The
on March 31, 1946 was
On March
the. bank
$261,837,150 compared re¬
spectively with
;
of
Clinton Trust
of March 30,
Co. of New York as
1946, reached a new
high at $29,-
1842)
Bank
Undivided
;
assets
31, 1946 the
Brooklyn In¬
Sciences,
Brooklyn Union Gas Co., Metro¬
politan Casualty Insurance Co.,
New York Dock Co., and VicePresident
and
director v of
the
Brooklyn "Citizen."
"..'■O';- /'^ ;■./'
At the same meeting, Walter
Hammitt, Secretary and Director
Home for Children,
stitute'.-of
$5,132,702 three months earlier
and $2,901,663 a year ago.
Hold¬
ings of United States Government
and municipal bonds amounted to
$15,756,590 against $15,308,878 and
$12,258,389.
Cash on hand and
due from banks at the end of the
of the National Bronx Bank
$139,000,000,. the same as on
of;
March 26
York,
New
a
announced ion
second increase in its
1, 1946 of
,
son
compari¬
Total de
$4,948,852,510 against
$5,143,422,244 last Dec. 31. In
posits
are
U. S. War Loan de¬
$1,001,642,473 and $1,133,752,278 respectively. Holdings
of U. S. Government obligations
are reported at $2,577,056,576 com¬
pared with $2,773,488,249.
Cash
these totals
posits are
banks and bankers
$995,920,778 against $1,102,106,and loans and discounts are
$1,290,314,552, an increase of $56,470,615 since Dec. 31. Capital and
and due from
is
681
,
surplus are unchanged at $77,500,000 and $142,500,000 respectively
and Undivided profits are $33,992,-
V
Trust
Company, the stock of which is
beneficially owned by the share¬
holders of the bank, reports total
deposits as of March 31, 1946 of
$159,396,527 compared with $165,235,022 last Dec. 31.
Total re¬
sources
are
$192,127,921 against
$196,968,037. Cash and due from
115 against
The
banks
$29,294,238.
City Bank Farmers
amounts
to
$25,193,100
and
obli¬
gations total $155,785,748, an in¬
crease in comparison with Dec. 31,
1945 of $934,302.
Capital and sur¬
compared with $29,870,345,
holdings of U. S. Government
plus are unchanged at $10,000,000
each and undivided profits are
$7,893,926 compared with $7,221,636 at the end of last year.
The
increase in undivided profits in¬
cludes net profits from sales of
securities, a change from the prac¬
tice of adding these to reserves.
The
quarter's current earnings
were
also increased by a large
payment of back interest on sale
of real estate.
the Bank and
together as of
March 31 amount to $5,108,249,038 and total resources to $5,440,343,610 as compared with cor¬
responding totals at the end of
1945 of $5,308,657,266 and $5,631,Total deposits for
Trust
Company
The total
Bank and
Trust Company together are $281,886,042 as of March 31, 1946 or
$45.47 per share on the 6,200,000
shares outstanding compared with
$276,515,874 or $44.60 per share as
340,637 respectively.
capital funds of the
of Dec. 31, 1945.
statement
due
950,970, compared with $194,761,881; U. S. Government securities,
$483,054,501, compared with $523,752,891; State, county and muni¬
cipal securities were $13,862,392,
Co., Inc.,
of condition
of
Brooklyn Trust Company of
Brooklyn, N. Y., as of March 31,
.
against/ $52,002,083,
holdings
of
United
Government securities were
compared with $868,517,977
December; cash and
from banks aggregated $186,-
at the end of
appointed,. First yice-Presi-
The
the
States
$190,-
against $13,895,392; other securi¬
ties, $38,788,378, against $40,022,270; loans and discounts
$98,586,-
with $90,873,216.
of the bank and
the surplus at the end of March
both remained unchanged at $14,-
888
compared
The capital stock
000,000 and $28,000,000, respec¬
tively.
Undivided profits were
$12,986,136, compared with $12,443,740 at the end of December.
Exchange
Corn
The
Bank
&
Co. : of
Trust
National
Philadel¬
phia,; has opened a new lunch¬
room, with the atmosphere of a
comfortable club for employees at
the
bank's
main : office. ; This
$189,976,038 at the "Green Room" provides an attrac¬
Loans and bills pur¬ tive meeting place for those who
$31,250,903 against bring their lunches or who wish
$35,896,787. Surplus was $5,600,- to prepare a light meal on an
000, an increase of $200,000 since electric range.
Selected music is
the
year-end, while undivided ■'piped" into the room. The "Green
profits were $1,667,075 against $1,- Room" has seating accommoda592,639, an increase of $74,436. tiohs for about 70 at one time and
Capital was unchanged at $8,200,- the staggered luncheon schedule
000.
■,
runs from 11 a.m. to 2 p.m., except
Saturdays.
Displayed /; in
the
Martin V. W. Hall, lawyer and "Green
Room"
are
cups
and
President of the Hempstead Bank, plaques,
trophies awarded for
Hempstead, N,. Y., died on March championships won by Corn Ex23 at the age of 61,
Mr. Hall had change employees in baseball, bas¬
been President of the bank since ketball and bowling.
1916, and had also practiced law
at his Hempstead office.
The Pennsylvania State Secre¬
tary of Banking, William C. Free¬
The Manufacturers & Traders
man, announced on March 27 the
Trust Co., Buffalo, N. Y., at its
final liquidation payment of the
90th anniversary dinner held on
closed Franklin Trust Co. of Phil¬
March 25, formed a Quarter Cen¬
adelphia,
Pa.
The
payment,
tury Club, which includes all em¬
amounting to 5.43%, or $882,482,
ployees with the bank 25 years or
will be the seventh since the clos¬
longer. Four employees who have
ing of the institution in 1931, and
been with the institution for over
will bring the total payments to
996,504 against
year-end.
chased totaled
,
of $186,156,911 in
with Dec. 31, 1945,
601,
dent.';yv/i;-;;////./:/;/>/;/;////. "v"
and
Vice-Presi¬
Goldfine,
William
dent
,
crease
and
Frederick Loeser &
was
$48,218,634
31, ,1945.
Undivided
deducting dividends
pared with $45,561,970 on Dec. 31,
1945; investments in United States
Government securities of $177,-
of
Arts
amounted to $827,720,**
resources
1946, showed total deposits of
$270,113,996 and total resources of
$287,271,979,
comparing
with
$278,403,262 and $295,538,969, re¬
quarter totaled $5,948,050 against spectively, on Dec. 31, 1945. Cash
on hand and due from banks was
$5,397,533 and $4,629,489.
payable May
surplus account aggregating $150,$2,960,000 amounted to 000 since Dec. 1. Capital and sur¬
$56,792,459 on March 31,1946 com¬
plus of this institution now total
pared with $50,240,000 on Dec. 31,
$1,750,000.
1945.
Total capital funds were
935,891 compared with $170,862,818 on Dec. 31, 1945.
Loans and $306,792,459 on March 31, 1946,
The New York State Banking
discounts of $35,543,225 compared compared with $300,240,000 Dec.
Department announced f that on
31, 1945.
With $48,258,753 on Dec. 31, 1945.
March 19 approval was given to
The bank's capital account was
the
New York Agency of the
Brown j Brothers
Harriman &
unchanged at $7,000,000 and its
Nederlandsche
Handel - MaatCo., private bankers, in their con¬
surplus and undivided profit ac¬
schappij, N. V., to change its lo¬
count
increased
to
$12,388,206 dition statement of March 31,1946, cation of business in New York
from $12,188,420 at Dec. 31, 1945, report total resources of $208,City from 40 Wall St. to 62 Wil¬
after payment of the regular divi¬ 186,002 compared with $209,702,liam St.
808 at Dec. 31,1945, and $183,559,dend.
187 as of March 31, 1945. Depos¬
J. P. Morgan & Co. Inc., New
At a regular meeting of the its amounted to $184,610,547 com¬
York City, reported as of March
$186,531,590 three
board of directors of the National pared 'with
months earlier and $161,667,691 a 31, 1946, total deposits of $663,City Bank of New York held April
Capital and surplus of 101,843 and total assets of $732,2, Edward E. Eden, Raymond T. year ago.
435,257
compared
respectively
Glover and Eugene Lieneck were $13,705,542 compared with $13,with $728,989,369 and $796,829,209
685,284 at the close of 1945 and
appointed Assistant Cashiers.
on
Dec. 31, 1945.
Cash on hand
Statement figures by The Na¬ $13,625,185 on March 31 a .year and due from banks is shown at
ago. Loans and discounts totaled
tional City Bank of New York
$124,084,208 in the present state¬
show total resources as of March $52,756,899 against $48,474,193 on
ment
against $137,208,564 three
Dec. 31, 1945, and $36,568,536 on
31, 1946 of $5,248,215,688 or a de¬
March 31, 1945.
Other important months ago. Holdings of U. S.
from
1
Brooklyn Chamber of Commerce,
Home for Aged Men, Brooklyn
was
Dec.
profits, after
Thursday, April 4, 194$
CHRONICLE
336,982, according to the com¬
The statement of the Chase Na¬ pany's condition statement for the
tional
Bank of New York for first quarter. This compared with
March 30, 1946 shows total re¬ $28,258,720 on Dec. 31, 1945, and
$22,131,330 as of March 31, 1945.
sources of the bank at that date
were
$5,498,510,643.
This figure Depoosits totaled $27,408,213
compares with $6,092,601,000 on against, $26,828,736 and: $20,733,Dec. 3.1, 1945.
Deposits amounted 027 respectively. Surplus and un¬
to $5,140,086,545
compared with divided profits amounted to $748,$5,742,180,000 on Dec. 31, 1945. 495 compared with $611,385 and
Loans and discounts
Cash in the bank's vault and on $573,697.
deposit with the Federal Reserve were $4,754,508 compared with
(Continued from page
recent
rt(«i <MVMO*' I*W»T«
(
.
50 years are, according to the Buf¬
falo "Evening News," Frederick
more
than
million, dollars,
7
or
44.43%, it is learned from the
H.
Kerr, 54 years; Charles C.
follows Government securities are now
Philadelphia "Evening Bulletin." 1
Bearing and Edmund C. Hausle,
with the figures of three months $414,306,976 compared with $467,53 years, and Adrian J. Allard, 50
and a year ago; Cash on hand and 984,871 in December; loans and
The election of Leon Falk, Jr., ag
■
/"/-\
due
from
banks
$39,274,169 bills purchased are shown at years. /f/,/ ;■
a director of the Farmers Deposit
against $42,171,879 and $34,654,t $151,799,453 against $150,389,137
Charles
C.
Theobald,
Vice- National Bank of Pittsburgh, Pa.,
three months ago.
Capital and
587; .United States Government
President of the Liberty Bank of succeeding
his uncle, the late
securities $53,352,370 against $58,- surplus remained unchanged from
last
year
at
$20,000,000' each, Buffalo, N, Y., for 25 years, and Maurice Falk, was announced by
391,037 and $63,653,091; state, mu¬
the bank on March 27, said the
while undivided profits increased prominent in Buffalo banking cir¬
nicipal and other public securities
since
the
1890's, died on Pittsburgh "Post Gazette."
to $6,784,767 in the current report cles
$48,879,044 against $46,794,567 and
March 25, said the Buffalo "Eve¬
against $6,378,367 three months
$37,658,108.
ning News," which also said:
John Y. Meloy, Jr., has been ap¬
He began his career with the
pointed
Assistant Treasurer
of
Citizens Bank in 1897 and later
The Continental Bank & Trust
The statement of condition of
Chicago Title & Trust Co. of Chi¬
was Vice-President and Cashier of
Company of New York reported
Guaranty Trust Company of New
cago/Ill., and will have charge of
the Union Stockyards Bank, both
as of March 31, 1946, total deposits
their Investment Field Staff. With
York as of March 31, 1946, shows
of Buffalo.
This bank eventually
of $183,270,807 and total assets of
that organization since 1929, Mr,
total resources of
$3,609,511,466,
$197,684,813, compared respective¬ as compared with $3,813,507,042 merged with the Liberty but it Meloy has recently received hig
ly with $204,765,283 and $218,- at the time of the last published was carried on as a branch office discharge from military service.
680,271 on Dec. 31, 1945. Cash on statement, Dec. 31, 1945. Deposits and Mr. Theobald was in chafge.
In 1931 he came to the main office
hand and due from banks amount¬
are
$3,093,764,158, as compared
The directors of the First Wis- ]
of the Liberty Bank.
ed
to
$33,895,482, against $54,- with
$3,309,452,507 on Dec. 31;
consin
Trust
Co.,
Milwaukee! "
687,596; holdings of U. S. Govern¬ U.
S.
Government
oblgiations
on
March
14 promoted
First National Bank in Med- wis.,
ment obligations to
$74,924,569, total $2,060,896,996, as compared
against $72,858,181; loans and dis¬ with $2,059,320,457 and loans and ford, Mass., on March 14 increased Phillip P. Nolte from Secretaryits capital from $300,000 to $400,- Treasurer to a Vice-Presidency, it
counts to $69,387,382, against $68,- bills
(purchased total $897,933,- 000
by the sale of new stock to was announced in the Milwaukee!
115,230. Capital and surplus were 684, as compared with $960,041,•
the amount of $100,000, the week¬ "Journal," which also stated:
unchanged at $5,000,000 each. Un¬ 680.
Capital and surplus remain
"Mr. Nolte, who succeeds the.1]
divided profits were $1,471,204,
unchanged
at ; $90,000,000
and ly bulletin of the U. S. Comptroler of the Currency reports.
late Wilbur I. Barth, joined the1'
against $1,336,025. General Re¬
$170,000,000,/ respectively,
"and
trust company's investment
de-'J
serves
were
$706,953, compared undivided profits of $54,865,941
with $528,649 at the end of the
Oscar T. Storch, President of partment in 1927. In 1937 he wasM
compare with $52,676,255 on Dec.
named Assistant Trust Officer and*]
last quarter of 1945.
the First National Bank of Bloom31, 1945.
asset
items
as
compare
.
announced
the/appointment of Lucas E. Bannon as head of the mortgage de¬
ingdale, N. J., recently
Fulton Trust Co.
of New York
reports total deposits of $37,607,358 and total assets of $43,192,048
total resources
of the United States Trust Co. of
As of March 31,
became
Secretary-Treasurer
in;J
1939.
"The
directors named
John
M.I
Nuzum, Assistant Trust Officer, to"
$169,411,530
partment. The appointment is in succeed Mr. Nolte as Secretary-:
in its statement of March 31, 1946, against $178,537,110 on Dec. 31;
Treasurer.
Mr. Nuzum joined tlW|
deposits of $136,368,157 compared line with the bank's action in en¬
as compared with deposits of $38,$140,355,195;
Government larging that department, said the company in 1930 and was named!
621,840 and total assets of $44,- With
Assistant Trust Officer in 1943.
211,804 on Dec. 31, 1945.
Cash, holdings were $90,317,715 against Newark "News" of March 22.
"Paul H. Duback, an employed j
U. S. Government securities and $83,238,320. and loans amounted
$37,348,412
compared with
demand loans secured by collat¬ to
since 1936, was named
Assistant]
The statement of the Philadel¬
eral amounted to $40,134,648 as $48,517,885. * Capital and surplus
Trust Officer.
Mr. Duback, noW}|
compared with $41,415,149 at the totaled $28,000,000 and undivided phia National Bank of Philadel¬
end of last year.
Capital and sur¬ profits were $2,728,577 compared phia, Pa., for the period ended on terminal leave, joined thd
plus showed no change in total at with $2,709,917 on Dec. 31.
Army Air Corps in 1942 and rose*
March 30, 1946, shows deposits on
$4,000,000, but undivided profits
from private to major in the lavjj,
that date of $764,124,700, consist¬
increased to $1,260,687, after divi¬
At
a
recent meeting of the
department of the Air Cbrps Re^
dend of $30,000 payable April 1,
ing^! $159,904,981 of U. S. Treas¬
Board of Trustees of the Dime
negotiation Division."
1946, as against $1,244,768 shown
Savings Bank of Brooklyn, N. Y., ury deposits and $604,219,719 rep¬
on Dec. 31 last.
William J. Wason, Jr., who has resenting all other deposits.
This
New
been
E. Chester Gersten, President of
York
a
were
Trustee for 29 years, was
elected Vice-President. Mr. Wason
& Trust is President of the Kings County
York, announces that Trust Co. He is active in civic,
Morris V. Bahar and Joseph O.
philanthropic and financial cir¬
Zurhellen have been appointed
cles, being
a
director of the
Assistant. Cashiers./
the Public National Bank
Co. of New
,
$806,759,816—$168,067,068 of U. S.
Treasury deposits and $638,692,compares
749
with deposits of
covering all other
reported on Dec.
deposits-
31, 1945.
Total
The
First
National
Trust Co. of Tulsa
Bank
announces
&
th^
election of E. F. Allen to the off
fice
of
April 1.
Vice-President,
'
k
,v_:
effective,
@FedFRASER