Full text of Commercial and Financial Chronicle : August 16, 1945, Vol. 162, No. 4412, Section 1

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ESTABLISHED

OVER

2 Sections-Section

n

019*3

AUG 2

Volume 162

New York,

Number 4412

N. Y., Thursday, August 16, 1945

I

Price 60 Cents

Copy

a

London Comment Impact of the National Debt Upon Full Employment And
j
Dispatch)
i Banks and the Capital Market ;
By HERBERT M. BRATTER

(Special Cable

;

Meeting of International

-'SZ'.-f

Chamber

Professor of Government Finance, University of Chicago

The

of

Commerce—

of

End

Lend-Lease

Aid to Britain—UNRRA's

Prospective Resources Ex¬
hausted—Lord Keynes Con¬
tinues as British Treasury
Adviser.

>>

'I

-■

By HON. ROBERT A. TAFT*
U. S.

Senator from Ohio

Dr.

Leland, Continuing His Analysis, States That Government Securities
Will Dominate Investment Market. As, Principal Borrower, Government
Will Be in Position to Control Interest Rates, and Lower Rates on Gov¬

Feature of Wagner "Full Employment" Bill
Which Provides for Comprehensive Planning and Thought by the Presi¬
dent and Congress on Future Economic Conditions, but Disapproves of

May Be Expected Because of Banks' Large Holdings. Holds
Banks, Though Relying on Governments for Income, Can Extend
Commercial Credits Because of Their Liquid Position, and That "Ample

the Provisions for Unlimited Government Spending to Attain Full Em¬
ployment. Says "Most Necessary and Immediate Step" Toward Pros¬
perity Is to Restore Freedom to Individuals and Business, and Decries
Government Spending and Increase in Public Debt as Leading to Cen¬
tralized Power Without Remedying Depressions. Wants More Liberal
OP A Policy.
,
•x- ■
,' /

Senator Taft Approves

ernments

That

Credit Will Be

LONDON,
ENG.,
Aug.
15—
Arriving in London for the open¬
ing meeting of the International
;
/
Chamber
of

'

By SIMEON E. LELAND*

Sees No Early Debt Redemption.

Supplied."

' ;7;V

\

,

.

PART II

;

Investment, Private Borrowing and Interest Rates
Prior to World War I, public

securities held

a

No

relatively unim¬

Congress has done

more

work in

months

seven

work

or

of

-

.

wmmm

:

Commerce

portant place among the debt instruments used to finance both the

Council, Win-

public

throp.W. Al-

Chair¬
of

man

In

al

total

Bank

New

s

York,

the

told

of

of

being
business

to

Organization."

"Our imme¬

here,"

he

said,

"is

(Continued on page 745) V; $
of

Index
page

Regular

and

to
Simeon

co¬

nomic Council of the United Na¬

Features

on

760.; /

vate

ligations,

se¬

ob-

debentures,

the

t

Seminar,

Lafayette,

Civil

was

published in the

on page

William H. Koar

Head

Present

a

e

sys¬

Robert A.

bring about progress
•

by

Taft

prosperity

between

buyers

sellers.,; The large risks in
sudden price changes involved

INC.

series

program

"Congress

(Continued

.

on page

759)

Stephen D. Harrison
Exchange's First
President,

1870

degree offset by the prevailing

(Continued on page 742)

NEW YORK STOCKS,

Taft

Senator

Speaks," Aug. 7, 1945.

State

between the price of the product on the farm and the
;

by

the Columbia network on the

radio

the

private

of

address

*An

over

marketing
on

and

Instrument Corp.
Bought—Sold—Quoted

method

in this method were then to a large

wide margins

Alaska Airlines 7

carried

transactions

of

NY Cotton Exchange

752)

Common Stock

k

plan¬
legislative
program
designed
to

organized

cotton

War,
been

simple-

The

"Chronicle" of Aug. 9th.

(Continued

had

Purdue

Ind.

a

tematic

ned

For many years prior to the

Farm

it

should under-

/

largest

re¬

turns

exchange in the: world,
antedating those of New Or¬
leans and Liverpool. ; • "

excluding

but

etc.,-

as

When

Congress

cotton

\ M This is the second and con¬
cluding part of Professor Leland's
address
before
the
Mortgage
Bankers

General

well

United

States.

Aug. 15 the New York
Exchange celebrated its
75th birthday. When organized
in 1870, it was the pioneer as

Pri-

people of

the

On

short-term

and

long-

debt

_A.\

of

the

Cotton

made up of corporate bonds, farm
and urban real estate mortgages,

first section
:

local

curities.

Leland

E.

University,

■

sized.

composed of
Federal, State

m e n

should get to¬

prepare

were

neg¬

the vi¬

domestic

tal

and Patient Discus¬
sion.
Importance of Exchange's
Facilities for Hedging Empha¬

or

com-1

lected

After Long

$6,000,-

7.8%,

almost

pletely

Effected

Was

Establishment

na¬

have

we

interests

Sept. 24, 1871, Notes That Its

less

000,000,

that

operate with the Social and Eco¬

:

than

is

gether

j

which

this

held

and

now

to

$75,000,000,000, of

impor¬
that

meeting

task7

Largest and Oldest Organized Exchange for Cotton Futures Trading
Marks 75th Anniversary on August 15. The "Chronicle" in Issue of

about

is

it

very

diate

sUnamend Jubilee

t r u m ents,

amounted

tant

tions

tions

and
then
outstanding,

the

and

'

foreign

in-

debt

"that

and

affairs

the

1916,

"Chronic 1 e''

trade

inourabsorption in foreign

public
private,

rep-

resent.ative

ana

States.

United

the

Chase Nation¬

foster

:

private econ¬
omy
of the

drich,

Herbert M. Bratter

outstanding importance than the Congress which has just ad^journed.
But

more

0',/^

.

Municipal
Bond

Brokerage

COMMON STOCK
Information

HlRSCH & CO.

on

request

for Banks, Brokers

Successors to

HIRSCH,

LILIENTIIAL

&

Umbers New York Stock Exchange
and

other

Exchanges

Established

Geneva

-

INVESTMENT SECURITIES *

Rep.

25 Broad St., New York 4, N. Y.
IIAnover 2-0600

Chicago

Teletype NY 1-210
.

Cleveland

64 Wall

'7

"

Street, New York 5

Albany
Buffalo
Syracuse
Pittsburgh
Dallas
Wilkes Barre
BaltimoreSpringfield
Woonsocket

HUGH

LONG

W.

BOND

FINANCE"

BROKERS

and COMPANY

48
•

634 SO. SPRING

WALL STREET

NEW YORK

Acme Aluminum Alloys,
Common

SECONDARY

V Aireon

ST

LOS ANGELES 14

5

Members New York Stock Exchange
Members

INCORPORATED

Troy

CORPORATE

Hardy & Co.

Prospectus on Request

PHILADELPHIA

BOSTON

THE CHASE

1927

'

-

London

Bond Department

and Dealers

R. H. Johnson & Co.

CO.

New

York Curb Exchange

NATIONAL BANK

New York 4

30 Broad St.
Tel. DIgby 4-7800

OF

New

Manufacturing

Solar Aircraft
Conv.

Prospectus

Kobbe', Gearhart & Co.
INCORPORATED

MEMBERS NEW YORK STOCK EXCHANGE

Members

14 WALL ST., NEW YORK 5.N.Y.
TELEPHONE-RECTOR 2-6300




N.

Y.

Security Dealers Ass'n

New York 5

45 Nassau Street
Tel.

REctor 2-3600

Teletype N. Y. 1-576

Philadelphia Telephone:

Enterprise 6015

NEW YORK

England

Public Service Co.
Analysis upon

Company

on

request

HART SMITH A CO.

Exchange

Telephone:

Principal Exchanges

Members
New

York

Security

52 WILLIAM ST., N.

Broadway, New York 5, N. Y.
Bell

-

ira haupt & co.
Members of

Reynolds & Co.
Members New York Stock

120

request

Preferred

Bell

Dealers

Y. 5

Assn.

HAnover 2-0980

Teletype NY

1-395

REctor 2-8600
New York

Teletype NY 1-635

I
I

OF

Preferred

90c

bull, holden & c°

CITY

Inc.

& Preferred

Corporation
MARKETS

THE

Tele, NY 1-733

Montreal

Toronto

111

Broadway

New York 6
REctor

2-3100

10 Post

Office Sq.

Boston 9
Hancock 3750

Tele. NY 1-1920

Direct

Private

Wire to Boston

'

ZZ

Thursday, - August 16, 1945

& FINANCIAL CHRONICLE

THE COMMERCIAL

730

Trading Markets in:
We Maintain Active

U. S. Sugar

Dunningcolor

Preferred

Common
'If

II9VI

STEEP ROCK IRON MINES

& Pfd.

United Drill & Tool

Bought—-Sold—Quoted

NORANDA MINES

.

& B.

A.

Bausch & Lomb

:

BULOLO GOLD DREDGING

Liberty Aircraft
Com.

Markets in U. S. FUNDS for

BROWN COMPANY, Common &

Bought

Sold — Quoted

•—

Canadian Securities Dep't.

G & KING

Goodbody & Co.

Established 1920
Members
Nat'l Ass'n

Telephone BArclay 7-0100

.V'-Kv-"
* :■ '!• /!•-Vl.';-

Members

New

120 BROADWAY,

Tel.

v

Steiner, Rouse & Co

York Curb Exchange

REctor

NEW YORK

Members New York Stock Exchange

2-7815

25 Broad

NY 1-423

BELL TELETYPE

Request

on

••

vj;:

York Stock Exchange

New

NEW YORK 6, N. Y.
Teletype NY 1-672

BROADWAY

115

HA 2-2772

Exchange PI., N.Y. 5

tO

•s.V'

'

and Other Principal Exchanges

Members N. Y. Stock Exchange

Dealers Ass'n
of Securities Dealers, Inc.

New York Security

Analysis

ftfcpONNELL&fO.

:

St., New York 4, N. Y.
NY 1-1557

HAnover 2-0700

New Orleans, La.-Birmingham, Ala.

Some Federal Reserve

Copeland Refrig.
Exolon Co.

Direct wires to

Kingan & Co.

Spahr Quotes Extracts From the Testimony and Writings
of Marriner S. Eccles, Beardsley RumI, and John H. Williams as

Campbell
was
previously with
Quincy Cass Associates and prior
thereto was an officer of Fox,

Professor of Economics, New

Washington Prop.
&

Stock

Professor

Baltimore Stock Exchange
120 Broadway, N. Y. S

Members

WOrth 2-4230
Y. 1-1227

Regarding the Validity or Usefulness of Gold as a Monetary Standard.
Holds Their Views in Respect to the Alleged Unimportance of Gold in
Our Currency

Bell Teletype N.

System Are Counter to the

Among Men Holding Key Positions

Demagoguery in Congress Than
Federal Reserve System.

1

in the

high officials of the Federal Reserve System have recently
observations regarding the lack of value or usefulness
v
of
gold - that
:
:

Some

.

deserve

Savoy Plaza
3/6s, 1956

t

a

tention.

are
disturbing. As

following

the

New York 5

System Teletype NY

Rejoins Conrad, Bruce Co.

quotatio ns
will reveal,

1-1548

they

LOS (

in

are,

'■

A/r

West

Walker

Campbell

S.

dangerous

Dr. Walter E. Spahr

Struthers-Wells
and

Common

Detroit Int'l

Emerson

Dr.

20 Pine Street,

New York 5

Telephone: WHitehaU 3-1223
Bell

Teletype NY

1-1843

Federal

the

.

pleasure

ing a gold reserve back of the
currency" (p. 18). He said fur¬

EUGENE WARD

MR.

archaic idea of maintain¬

has the

in announcing that

y

country, left

only

"We are
that still

ther: ".

.

.

Gold is not needed for

domestic

has become associated with us
in

our

Trading Department.

circulation; and it is
needed as reserves against notes
and deposits only to the extent
that we choose to impose require¬
ments

the

on

others

and

have

reserves
Members

37 Wall
Bell

N,

Y.

Security Dealers Assn.

St., N. Y. S

1127

Illinois Public Service
$6 Pfd.

Empir& District Electric Com.

British,

French, and
eliminated required

Mr,

Eccles:

"Do

in

this

serve

,

.

we

advocate,

you

could

very

country suspend

requirement

(Continued

on

Can

We

Delaware Rayon

George Terborgh,

Great American Industries*

Avoid Another

Indiana

Iowa Southern Utilities Com.

Members N.
•

111

repprt of the discussion:

HAYTIAN

Good evening.

Chairman Granik:

War should end tomorrow, would a depression
In economic circles, at business conferences and in

If the Japanese
be

inevitable?

government, this question is far from hush-hush.
There are experts who say, "Yes, we have failed to plan
emergency

CORP.

for

reconversion of our war plant to peace; therefore we must
of economic chaos."
are others who believe firmly that American business in¬

There

well

the

if only given a free hand.

Quotations Upon Request

immediate future.

problem of the

has become the

'

-

being outlined; groups are beginning to
themselves and the world of tomorrow is taking shape. Must
(fcontinued on page 755)

Already the issues are
assert

748)

FA It It
New

i

All Issues

Northeastern Water
All

Common
*Circular

Upon

Bough t—Sold—Quoted

Issues

G.A.Saxion&Co.,Inc.
170 PINE ST., N. Y. 5

WHitehaU 4-4970

Teletyoe NY 1-609




Simons, tinhorn & Co.
HAnf.v.f

St., New York 4, N. Y.
2.0800

WY 1-210

Common Stock

CO.

BOUGHT

—

SOLD

—

QUOTED

INCORPORATED

Troster,Currie&Summers
Members N.
74

Members Cleveland Stock
Union

Commerce Bldg.,

Security Dealers Ass'n

Y.

HA 2-2400
NY 1-376-377

Exchange

Teletype
Private

Wires

Detroit

-

to

Buffalo

Pittsburgh

-

-

Cleveland

St. Louis

A

Cleveland 14

U€

Telephone MAin 8500

Trinity Place, N. Y. 6

Members New York Stock Exchange

25 Broad

NEW YORK

Corporation

WM. J. MERICKA
Request

:;

Eastern

DAIRIES

Engineering Co.*

:

Exchange

TEL. HANOVER 2-9612

Ohio Securities

Wellman

s

Stock Exchange

120 WALL ST.,

for

FOREMOST

York

New York Coffee & Sugar

New York Market

Preferred

& CO.

Members

agencies of government, reconversion

In various

re¬

altogether?"
page

genuity can avoid chaos

Segal

Jmgland Public Service

NY 1-1026

BArclay 7-0570

Dr. Emerson P. Schmidt, Director of Economic Re¬
search, United States Chamber of Commerce. Because of the timeli¬
ness
of the subject, the "Chronicle" prints below the stenographic

$2 & 6% Pfds.

New

Y. Security Dealers Ass'n

Broadway, New York 6, N. Y.

Institute, and

Lock & Hardware

^England Power Assoc.

New

*

F. H. Holier & Co., Inc.

Robert R. Nathan

Henderson, former

Research Director, Machinery and Allied Products

Limestone, 6s, '52

* Analysis on request

.

Green Mountain Power $6 Pfd.
Public Service Com.

"A"*
"A"*

New Bedford Rayon

suffer the consequences

altogether."

Governor, that

Central

The

the

Cross Company*

Liquidometer Corp.*

OPA
Administrator and Chief*Economist, Research Institute of America:
Leon

Senator Murdock of Utah asked

Hanover 2-4850

Teletypes—NY 1-1126 &

ourselves.

Canadians,

Trading Markets

7, oh the American
of the Air, founded 17

Mobilization and Reconversion;

Theodore Granik

^

NEW YORK 8
HAnover 2-9470

WALL ST.

Avoid Post-War

Depression?" Those participat¬
ing
in
the discussion
were
Robert
Nathan, Director for
Reconversion, Office of War

the

of

York Curb Exchange

Members New
64

Teletype NY 1-1140

by Theodore Granik,
Washington attorney and mod¬
erator, four prominent aconomists
discussed the question,

System, said at

Reserve

Frank C. Masterson & Co.

P.

years ago

of

hearings before the Committee on
Banking and Currency, United
States Senate on S. 510 (Feb. 20,
28, and March 7, 1945):

We take

Forum

"How

Governors

of

Board

the

Common

On Aug.

Views

Eccles'

Hotel Waldorf-Astoria

Depression

—

Marriner S. Eccles, Chairman

to

gram

old, as un¬
sound, and as dangerous as in¬
convertible paper money itself.

&C0.

H.G.

Bridge

Jardine Mines

Reconversion Pro¬

a

on

as

Preferred

w

Co., and was trading manager
for Conrad, Bruce & Co.

Stenographic Report of Theodore Granik's "American
Forum of the Air" in which Robert Nathan, Leon Hen*
derson, George Terborgh

fallacious and

Common

WHitehaU 4-8120
Teletype NY 1-1919

&

ression:

and

old

York Curb Exchange

Common, 6%s & 7»

lightened., Instead, they
are

A.

Bell System

"How

en¬

nor

new,

Common

...

Members New

65 Broadway

with White, Wyeth

and

.A Common

•

,

Members New York Stock Exchange

has

Schmidt Give Their Views

Caribbean Sugar

England Pub. Service

Edward A. Pureed & Co.

—

rejoined
Conrad,, Bruce & Co., 530
6th Street.
Mr. Walker in
C.

William

with

> CALIF.

AN'GELES,

tials,
neither
advanced, nor

Util.

Gen.

Chronicle)

(Special to The Financial

%

their essen¬

Associated

New

1

England*

Common

pressed

Telephone COrtlandt 7-4070
Bell

Osgood B
Northern New

Common

the views ex¬

Curb Exchange

31 Nassau Street,

Con¬

their
authorship,

Vasiderhoef & Robinson
Members New York

Castera & Co.

Gruen Watch

-

sidering

Curb Exchange

LOS ANGELES,

the past was

made some

7s, 1952-1957

Traded on N. Y.

Teaching of Experience and

Opposed to the Conclusions of Careful, Objective and Reputable
Scholars and Remarks That One Rather Expects to Find Monetary

^International Power Securities

•

Officials

Observations and Doubts of Federal Reserve

Giving the

;

Chronicle)

(Special ',o The Financial

York University, Executive Secretary,
Economists' National Committee on Monetary Policy

By WALTER E. SPAHR

Nazareth Cement

7's

oney

CALIF.—Ken¬
neth
E.
Campbell has become
associated with Buckley Brothers,
530
West
Sixth
Street.
-Mr.

Preferred

&

Common

t

Glass

Mississippi

branch offices

our

MEMBERS NEW YORK STOCK

29

Broadway, New York-8
WHitehaU 4-3640

Direct Private

Wire to

Cleveland

One

Wall

Street,

New

EXCHANGE

York 5, N. Y.

Telephone EOwling Green

9-4800

UKj'r.wM^jmM *

\Volume -162

Distribution facilities for

CHRONICLE!

We

interested in

are

offerings of

llCHTEIWEIfl

-

Reg. O. 8. Patent Office
l:-'V

■

5-

:JV: /

..f

<

■

.

•'

High Grade

William B. Dana Company

BLOCKS

AND COMPANY

Publishers

Public

25.Park Place, New York 8 '

of

Utility and Industrial

RANCORS

REctor 2-9570 to 9576

UNLISTED

Herbert

Editor and Publisher

William D. Riggs,

32

Members New

Broadway

C

and every Monday

{

(complete statistical issue—market quo¬
tation
records/
corporation,
banking,

Direct Wire Service

135

Offices:

Other

City—Los Angeles

"La

S.

Salle

Capital Levy Plait for the
Redemption of National Debts

StV,

0613.),
1 Drapers' Gardens, London, E. C., Eng¬
land, c/o Edwards & Smith.
Chicago

State

(Telephone:

111.

3,

Copyright 1945 by William B. Dana
-.Company;-

TITLE COMPANY

■

Reentered

CERTIFICATES

ruary

25,

Yoik,

N.

second-class matter Feb¬

as

1942,

Y.,

at

the post office

Act

the

under

at New
of March

Mtge. Guar. Co.

Subscriptions
Possessions,
of

Lawyers Title & Guar. Co.

Canada,

Central

United

in

;

$26.00 per year;
$27.50

America,

States and
in Dominion

year;

per

South

Mexico,

Spain,

and

Australia

Prudence Co.

\

,

"

Writer Refers

By A. M. SAKOLSKI

to

and

$31.00 per year.

Africa,

in
as

After each of the long and

40 Wall St.,
Bell

N.Y. 5

protracted wars of the last two cen¬

that 4 have
arisen

be

must

made

in

New York

After

After the Na¬

poleonic

funds.'

wars

British

the

national

Champion Heeded!
Adversely Affected by Onerous
Regimentation. Opportunity for Existing Voluntary As¬

: i

,

■

.

»

,

,,,

-

,v

'

,

!

•.

* J,

1

u

7

,

,

1

ei K'

J"

^

jr>

a r

some

Cine-Color

own

Civil War there

*Dunningcolor

dire

forebodings

Foundation Co.

re¬

Aetna Standard
Wickwire Spencer

form of repudiation.

forego

Bought—Sold—Quoted

interest and

payments of

*Circular

taken

be

its drastic reduction, and

Members
New

HAnover

for

Bell

System Teletype, NY 1-2480

Private Wires to Chicago & Los Angeles

-

Repudiations' Applic(Continued on page 744)

Reasons for

he even

|
Prior to the passage of the Act, .during the course of leg.;islative hearings, great doubt was expressed concerning its
feasibility and its effect upon our free institutions. It is now
{plain in the light of NASD performance that these fears were

lull Stampede-Accent on Inflation

recommend

to

as

5, N.Y.

2-4785.^

-

went

far

York Security Dealers Assn.

40 Exch. PL, New York

politician and one-time editor of
the- Rochester "Daily Union and
Advertiser," wrote
a .pamphlet
with
the
bold
title f "Brief

For the public and for the securities industry it was a
|sad day when the Maloney Act became a law for this gave

so

t

Request

on

J.F. Reilly&Co.

upstate New York

Isaac Butts, an

Detrola

^International

proposed that the "bloated bond¬
should
be
forced
to

holders"

-

Teletype NY 1-1203

HAnover 2-8970

recommendations for
It was

even

were

g(,u e d
that
means
should
A. M. SakoUkt

?,.

39 Broadway

New York 6, N. Y.

garding the accumulated national
indebtedness,
and
in - scattered
niches of political comment there

David

Ricardo,

Public Temper Requires
^

serious

mist,

Individual Dealers and Brokers to Come to

|

QUOTED

Members New York Security Dealers Assn.

problem. j principal in gold as they had been
Even the re¬ promised, and instead, depreciated
nowned
clas¬
''greenbacks
should; be
forced
down
their
throats."
In
1869
sical
econo¬

of Securities Industry

'Aid '.of Investment Industry^
Immediate Action.

a

economic

New NASD By-Laws Should Be Challenged and Legality
!of Maloney Act Determined. Public Welfare and That

or

regarded

was
as

debt

our

some

were

the burden of

sociations

-

L. J. GOLDWATER & CO.

wealth to

sort of general levy on
eliminate it.

from

conflicts.

the

exchange, remittances for

foreign subscriptions and advertisements
'

d-

I

national debts

NOTE—On account of the fluctuations

WHitehali 4-6330

Teletype NY 1-2033

SOLD

Complete Statistical Information

—

—

,

Record—Mth.$25 yr.
Monthly Earnings Record—Mth.. .$25 yr.
in the rate of

-

controversial discussions of the

turies, there have followed long and
accumiria ted «

Bank and Quotation

Exchange

BOUGHT

Is Highly Inequitable and Difficult io Apply
Practice.
Sees Grave Danger of Currency and Credit Disturbances
Well as Other Economic Disruptions in Excessive Taxation on Wealth.

Other Publications.

fcwburger, Loeb & Co.

CERTIFICATES

Previous

Proposals and to Hugh Dalton's Plan to
Extinguish National Debts,by Heavy Levies on Private Property, and
Points to Recent Proposals of the French Provisional Government as a
Recrudescence of the Idea.
Holds That Though Theoretically It Is

and

Cuba,
$29.50
per
year;
Great
Britain,
Continental Europe (except Spain), Asia,

N. Y. Title & Mtge. Co.

Members New York Stock

NEW YORK

STREET,

TITLE COMPANY

Ideal in Its Application, It

3, 1879.

Lawyers Mortgage Co.
i

The

ciearings, state and city news, etc.)

New York—Chicago—St. Louis

Bond &

Obsolete Securities Dept.

WALL

99

York Stock Exchange

Telephone WHitehali 4-6551

Harrison 2075

Teletype CG 129

Kansas

work.

(general news and advertising issue)

Board of Trade Bldg.
CHICAGO 4

Teletype NY 1-832. 834

and

Teletype NY 1-5

Telephone HAnover 2-4300

week

a

25 Broad Street, New York

;

final end

a

labor

Trask & Co.

Thursday

every

Ass'n

DIgby 4-8040

twice

Published
.

Dealers

Sponcer

Business Manager

that the

be

;"

■

Thursday, August 16, 1943

STRAUSS BROS.
NEW YORK 4

war is over, let there
to bickering between
capital, and let us build
a
peace-time prosperity in which
there will be no obsolete securities
and
I
can
take
up
some
serious

Now

William Dana Seibert, President

Nation-wide marketing

Security

Selbert,

D.

AWAY

PREFERRED STOCKS

'

SECURITIES

York

<f*-*n, *,,

and

COMMERCIAL

The

New

k

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4412

FINANCIAL

Members

v<

a

TRADING MARKETS

birth to the National Association of Securities Dealers.

Bartgis Bros.

?

Billings & Spencer
Federal Screw Works

By EDSON GOULD

Smith, Barney & Co.

Shepard Niles Cr. & Hoist

>;

Security Analyst Holds That Logic Behind the MarketY Bullish Inter¬
pretation of the End of the Japanese War Is: (1) Change of Gov¬
| r We were about to say that the National Association of
ernment Policy From Rigid Regulation of Business,
Securities Dealers had outlived its usefulness.
On second
(2) Probability of Early Tax Relief, and (3) a
•though!, we believe this body never * had ahy * genuinely Peacetime Yield
Ceiling on Stocks of 3% Against
useful purpose.
a
Wartime Yield of 4%.
Contends Long-Range
i ;
As now, so prior to the Maloney Act, the duty to police
Outlook for Market Is Bullish, and That "a Fully
.fraudulent and manipulative acts and practices and to pro¬
Invested Position Seems Warranted at This Time."
mote just and equitable principles of trade was within the
There is logic behind the market's bullish in¬
jurisdiction of the Securities and Exchange Commission.
terpretation of the termination of the Japanese

Laclede-Christy Clky Prod.

sound.

Bought

—

Sold

HtBioG &
Members New

York Security Dealers Ass'n

Broadway

170
:

Bell

System

WOrth 2-0300
Teletype NY 1-84

-

I

The partial siphoning off of those duties to the NASD
Maloney Act and the NASD methods of regimenta¬
tion have been repeatedly criticized by us. Our position Re¬
mains unchanged and is reemphasized at this time because
of the daring and insolent package party that the Governors
via the

handed the member firms in the vote on the recent amend¬
ments to the NASD

By-laws.
'
Emphasizing only the then proposed new article deal¬
ing with registered representatives, the Governors horned
in—without a separate opportunity on the part of the mem¬
bers to vote thereon—a new amendment to Article VII, Sec¬

{'■■■

for these reasons:

war

permit time for experimentation with
rigid business regulations and restrictions.
,
(2) Tax relief will thereby become an im¬
mediate prospect.
■
*
■
(3) The yield ceiling for stocks in peacetime
is around 3% vs. about 4% in wartime.
DowJones
Industrial equivalents are 225 and 170,
will

not

respectively.for

vance

creased.

the

The

......

chief reason, for a cautious
,

:

petitioner, the Securities Dealers
(Continued

.

For past

9




'

-

years

,

Broad

St., New York 4, J4. Y.

,

attitude toward the stock market

COMMON

Whitehall 3-0272—Teletype NY 1-956
Private Wire to Boston 1
•

Public National Bank

To yield

.

—

$4

over

per

1945 to date

share.
—

$8

7%%

National Radiator
■

-'

:

Circular

on

request

.

i

'V

Members

Established 1914

74

Committee, which are par-

■f

K

'

analysis
dealers only
>

t-

Unterberg&Co.
N.

Y.

61 Broadway,

Trinity Place, New York 6, N. Yv-;

Telephone: BOwling* Green 9-7400

738)

:

C. E.

HoixRosESlkosim

raised by the

(io.

*Second quarter

available to

'-'.-'V"

•

& Trust Co.*

STOCK

has paid dividends averaging $17

-Quarterly dividend June 29

of the National Association

on page

-

Thermatomic Carbon Co.
,

duty, to do.
of Securities Dealers, Inc.," certain issues were

-

Members New York SecurUy Dealers Ass*.

25

(Continued on page 739)

;■

;

This, the SEC still has an opportunity, nay, a

In the matter of "The Rules

DUNNE & CO.
Edson Gould

•

rules of fair

proceeding.

SECURITIES

Thus with peace the scope for ad¬
market would be materially in¬
Governmental Policies

By-laws permitting the Board to submit in the
the member firms and their representatives alleged

practice "to provide safeguards against unrea¬
sonable profits or unreasonable rates of commission or other
charges- * *
-v-r —■ ■
(• T The failure to afford member firms of the NASD an
opportunity to vote separately on the By-law amendments
dealing with separate subject matters is an offense which
cannot be readily forgiven, an offense which, as we pointed
out in our recent editorial, should render nugatory, the whole

SUGAR

ernmental

tion 1 of the

future to

A quick war-ending will necessitate gov¬
encouragement of business and profits,

(1)

Teletype: NY

Security Dealers Ass'n

New York 6, N. Y.

Telephone BOwling Green 9-3568

1-375

Teletype NY

1-1666

/

THE COMMERCIAL & FINANCIAL

732

Thursday, August 16, 1945

CHRONICLE
BOSTON

North River Insurance

NASHAWENA MILLS

Winters & Crampton
v

A leading

(j

ACTUAL MARKETS

manufacturer of hardware

for stoves and

Approximate Market IVe

Home

'■

Net

Am. Bantam Car,

Supply Co.

"

Price—About

*

Circular

Bought—Sold—Quoted

Oil

du Pont,

Gas

&

W. J. Banigan
Successors

Established

50

& Co.

& CO.

Established

1904

50 Broad

HAnover 2*8380

Broadway, N. Y. 4

Magnesium

r

'on

Maguire Industries

Asphalt

W. L. Maxson

Michigan Chemical*
Moxie Co.

Punta Alegre Sugar

in
fact it is going
on every day.
Nothing can

Standard Stoker

|

^

|

Triumph. Explosives
U. S. Finishing Co., Pfd.

a

.

awaken-

ing which will
cause
us
to

.,

Warner-Swasey

of

all

before

Aspinook Corp.

the

Spinning

^Central El. & Gas Com.
Conn. Lt. & Pr. Com.
Cons. Elec. & Gas Pfd.

for

Jowa Southern Util.

Ltg., Pfd. -

sia

Corp.*

England Pub. Serv., Com.
Northern New England Co.
.Portland Elec. Pow., Prior Pfd.
Puget Sound Pow. & Lt., Com.

Queensboro Gas & Elec. 6 Pfd.
'■

1

;■

•'

* Bulletin

'1

.

or

Circular

f Prospectus

it embers

120

upon

Upon

Request

BROADWAY, NEW YORK 5

Direct

Wires

to Chicago and

ENTERPRISE

Hartf'd 63.11

NY

figg
Phila

'PHONES

Buff. 6024

Bos. 2100




A-1'1

request

N, Y. Security Dealers Assn.

REctor 2-8700

for higher prices,

80

to

billions.

their

socialistic
or
not these will be

is

one now

still in

a

knows. Rus¬

the test tube, not¬

what
her friends
say.
But for the next few years,
while the
experiment is being
tried, jobs should be plentiful and
money should
flow like water.
Stocks
should
sell
higher, not
only because of their intrinsic
merit, but because wise English¬
men will shift from their English

one

*Con. Cement

*Kingan & Co.
Crompton and Kbowles

^Central Iron & Steel

Gruen Watch

,

*Circular

Textiles, Incorporated;

Available

Memos

•*;-

10

OFFICE SQUARE
9, MASS.
vr

POST

Members New York,

Teletype BS 69

-

there

are

Low

Interest Rates

consider

interest

rates.

not long ago that govern¬

paid over 4V2%; sav¬
Stocks Not Too High
ings bank accounts paid 3V2%;
while we got 2% on our checking
Compared with panic prices of
accounts.
Today
these interest
Jen years ago, the stock market
rates are down to 2%,
1% and
now
seems
high to many con¬
servative people. This is because zero,—lower than ever before in
the history of the world.
the stock average was only 30 in
Yet anyone can buy today good
1932 compared with -110 today. :
Yet, only as far back as 1937, corporation bonds to yield 3Vz%
and good stocks to yield more.
these same stocks sold at about
130, while in 1929 they sold for People should soon get tired of
280. With the British Government leaving their money idle in the
ment bonds

,

England backing

and the Bank of

inflation,

some

again sell at

Street, Philadelphia 2

stocks may

well

N.

Y.

1929 highs.
buy?" you ask.

"What should I

Private

Wire

between

System

'

- ■

ft

Boston Sand & Gravel
Southern Colorado
Power Co.

eneral Stock & Bond Corp.
POST

10

OFFICE SQUARE

Telephone: Liberty 8817

BOENNING & CO.
good dividend-paying stocks
should greatly increase. -":'V

for

to

Advice

1606 Walnut

People

Young

'»

son

should

some

Mil American Co.
(Special to The Financial

SAN

Guy

FRANCISCO,

M.

realizes this, the demand

was

When

;

Lota & Fractions

Botany Worsted Mills pfd. & A
Empire Steel Corp. com.

..

Pittsburgh Railways Co.
AH

issues

■

Wawaset Securities

ing.

securities.

-

Warner Co. pfd. & com.

the

good

no

Odd

trade.

or

_

Dealer Inquiries Invited

expert in

an

Y. C.

7-1202

American Box Board Co.

.

from

at

become

profession, art

PH 30

:

Phone to N.

COrtlandt

to follow with socialistic ex¬
periments. The movement will
temporarily cast its shadow on the
United States.
This means that

Securities

or

Private

which I must mention
in
closing is this:—The- British
elections will cause most of Eu¬

every, family should own a little
fertile land and every young per¬

St., Philadelphia 3

Pennypacker 8200

One thing

associated

1%

Common

New

BOSTON 9

interest

at

public

Telephone—WHitehall 3-7253

Philadelphia, New York and Los Angeles

U. S. Sugar

when they can get So much more

banks

Angeles
Hagerstown, Md.

New YorkLos

rope

the day.

was

Philadelphia and

Stock Exchanges

Los Angeles

Pittsburgh, Pa.

no

to
seek
investment.
defeat should- hasten

going

Churchill's

It

stocks to American stocks.

that

later this loose change

Sooner or

us

Request

BUCKLEY BROTHERS

-

BOSTON

.

ago, it seems as if higher prices
for stocks and land are inevitable.

.

on

LERNER & CO.

build' this up to seven
During the past five

considers

Let

'

PHILADELPHIA

*Rivmide Cement,

Tell'HUB 1990

securities available for pur¬
chase than there were five years

?

Telephone

2-5035

Corp. Class "A"

Giant Portland Cement

investing my own

more

is

York

Rector

Portland, Me., Enterprise 7018

the

"*

83

-

New

Private

TRADING MARKETS

higher rents and

withstanding

New

'

Babaon

years

wages,

success, no

Special Part.

■

Roger W,

United

Whether

-■

Southeastern

/

Springfield

Providence

Portland

trading market

a

in these bonds

-

the

years
this ... loose
change
has
jumped from seven billions to
twenty-eight billions! This means
it has quadrupled in five years.
manding inflation.
During this, same five years bank
; I am more. sure of this than deposits have doubled and are
ever since the Labor Government
now over $100,000,000,000.
•
of England won by such a large
This nearly equals the assessed
majority.This will enable them
values of every acre of land and
to take over the Bank of England
every building of every kind in
and issue all the money they need
the entire United States.
When
experiments.

American Gas & Power

-:';vv;

LIBerty 2340

Tel.

higher stock values. The people of
the world are "on the march" de¬

Textron Warrants

j

sign of
Hence

higher

Worsted

Nassau Suffolk

chains,

especially

Billions Awaiting Investment

States is headed

Consolidated Textile

ih, V/V;:

no

$16,198

((£ 6%

Franklin Street, Boston 10, Mass.

•/; Fifty-five years ago there were
only about one or two billions of
"loose
change" in pockets and
cash drawers. It took about fifty

however, now :v
this.

-'v:

1529 Walnut

selfi shn.ess.y, I,
see

am

*• '■•

money.

good

the

which I

in

our; own

Alabama Mills*

Group,

•

put

Wickwire-Spencer

to

casualty stocks, and well-managed
Real Estate. These are the groups

<

1

Requirements

F.L. PUTNAM & CO., INC.

wide list, buy¬

variety

pecially; the
Insurance

great spirit-

ua

procedure is
a

$77,783

ended June 30, 1945.

vise the Merchandizing Group, es¬

;

stop it except

Taca Airways*

t.

;

months

six

terest,

Inactive Securities

rails, airplane manufacturing and
shipping stocks. If you pinned me
down to three groups I should ad¬

evitable;

;

Interest

ing the leading stocks in fifteen
or
more
industries, omitting the

inflation is in¬

Sheraton Corp.

safest

diversify among

have long

thought that

PuroJator*

the

Well,

Inflate

to

I

H. K. Porter, Com.

:

$539,950

Available for Bond In¬

Industrials—Utilities

PARK,

*

| Pollak Mfg. Co.

■

-

Bank and Insurance Stocks

77

Sure

England

New Jersey

•;

We maintain

Stock Prices

MASS.—When Churchill's defeat was an¬
nounced by radio, the stock market started to crumble.
When, how¬
ever, investors began to realize that it would take years for England
to get its socialistic plans into action and perhaps then would fail to
succeed, these same people began to buy back securities.
The mar¬
ket'has since returned to normal.? There are several reasons for this.
BABSON

Majestic Radio & Tel.

Berkshire Fine

of Churchill's Defeat

Mr. Babson Discusses Importance

Liberty Aircraft Products

I

England Coverage ' : '

Secondary, Distributions

The 5tock Market

Cement*

Lime

Building

—

3-6% Bonds due Jan. 1,1966

HAnover 2-4341

ions and 11

;

Polaroid

j

England Markets

Retail New;

International Detrola

|

of ;. >
Chemical

Manufacturers

Outstanding

Howell Elec. Motors

Stromberg Carlson

li

1924

Haskelite Mfg.

|

Tele. BS 596

v

High Grade Calcium

New

*

MASS.

England Lime

Teletype BS 424
;

Great Amer. Industries

I

New

•

BOSTON 9, MASS.

Street, NEW YORK 4, N. Y.

Teletype NY 1-2866

10,

Homsey Co.

IYIorris Stein & Co.

to

CIIAS. H. JONES

•

Broadway-

STREET

FEDERAL

BOSTON

-

Shawmut Bank Building;

;

REQUEST

Capitol 4330

General Tin

I

INVITED

Tel. Liberty 6190

Luscombe Airplane

Gerber Products!

.:

2-4500—120

,

75

Zinc

Wallower

Evans

.Globe
ON

ANALYSIS

General Machinery

I

"

$32.50

request.

Select Theatres

Electrolux*

Mastic

on

INQUIRIES

Oil

South Shore

...

Lawrence Port.

1908

Security Dealers Assn.

Y.

System Teletype N. Y. 1-714

Jar dine Mining

Douglas Shoe, Com & Pfd.*
Du Mont Lab. "A"

I

REctor
Bell

Pottery

Shawnee

Appliances.

Buckeye Steel Castings*
Buda Co.*

Concrete

Vacuum

Franklin Railway

Brockway Motors

I

Members N.

Currently—Paying $2.00
per share.

Glass, Com. & Pfd.*

Bowser, Inc.*

share

per

1944.

in

Com. & Pfd.

Arm strong Rubber, Com. & Pfd.f
Bendix Home

J.K.Rice,Jr.&Co
Established

New York 5
Teletype NY 1-2423

American Hardware*
Am. Win.

quick assets in excess of
$20 per share.

Earned—$4.03

•

Hanover 2-7793

Aetna Standard Eng.

,

Investment Securities

70 Pine Street

Indemnity Co.

Capital Stock

•

FIRST COLONY CORPORATION
Underwriters and Distributors of

Irving Trust Co.

75,000 Shares

refrigerators

IN 250

ACTIVE ISSUES

Insurance

Homestead

Capitalization

Mr.

with

Chronicle)
<

CALIF.—

has

MacVicar

North

H.M.
: ■

with Lester &

Byllesby & Company
OFFICE

PHILADELPHIA

Stock Exchange Bldg. Phila. 2
Teletype PH 73

Phone Rittenhouse 3717

become

American

Company, Russ Build¬

MacVicar

•■>

thereto

was

in charge of the Los

office., of
Group, Inc.

in the past Angeles

Co. and prior

.

.

Distributors

■"■miiMiMiiwmwMi, mi 11,

Volume

733

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4412

162

Building Industry
Private Wire Service

Direct

THE HAJOCA CORPORATION
reduction

Total

obligations

in

senior

the

to

COAST

and the
$106.50 per
being paid

stock

common

improvement in working capital amounts to $6,427,687, or
common
share, since December 1934.
Dividends currently
at
the rate of $2.50, annually.
A
r
,
' M " , /

I

'

New York

■

Chicago

-

TO

St. Louis

•

COAST

-

Kansas City

•

Bank of Montreal

Los Angeles

•

Canadian Bk. of Commerce

Priced about 52
,.'

,3

.

■

■

Circular

-

.

on

II STRAUSS

Request

Members New York Security Dealers Ass'n

Hon RsseS Tipster

32

Established 1914

Broadway
YORK

NEW

Trinity Place, New York 6, N. Y.
Telephone: BOwIing Green 9-7400
Teletype: NY 1-375
74

Royal Bank of Canada

"

.BROS.

Andian National Corp.

Board of Trade Bldg.

•

CHICAGO

4

Brown

4

Harrison 2075
Teletype CG 129

Digby 4-8640
Teletype NY 1-832-834

Company Com. & Pfd.

Canadian Pacific

Rwy.

Canadian Western

Lumber

Electrolux
White &

International Utilities

KANSAS CITY

LOUIS

ST.

Minnesota & Ontario

Pledger & Company, Inc.

Fonda, Johnstown

U. S. Air

Baum, Bernheimer Co.

Company

LOS ANGELES

Sun Life Assurance

& Gloversville

Conditioning

HART SMITH A CO,

All Issues

WILLIAM

52

Girdler

Common & Preferred

George R. Cooley &Co.

Southeastern

Corporation Stock
Circular

2-0980

1-395

Toronto

Montreal

on

Community Water Service

Request

S^s^s 1946

Crescent Public Service

BANKERS BOND ^

si

Corp.

1954

6s

East Coast

Public

INCORPORATED

1948

4s

LIFE BLDG.

1st FLOOR, KENTUCKY HOME

Curb and Unlisted

Special Part.

HAnover

Bought—Sold—Quoted

1924

Teletype NY 1-2419

WHitehall 4-3990

N. Y. 5

Teletype NY

New York

William St., New York 5, N. Y.

52

St.,

Bell

AAA-A A; INC.
Established

Paper Co.

Noranda Mines

Eastern Minnesota Pr.

LOUISVILLE 2, KENTUCKY

Securities

Service

;

ffi/zs '51

Minneapolis & St. Louis Ry.
Issues '■

Long

Bell Teletype LS 186

Distance 238-9

.

„•

Securities Co. of N. Y.
A;'. AA

"

■

4%

.

Consols

MICHAEL HEANEY, Mgr.

cAllen & Company

STATE AND MUNICIPAL BONDS

NEW YORK 4, N. Y.

Members New York

HAnover 2-2600

Telephone:

Teletypes: NY 1-1017-18 &

1-573

63 Wall

Y.

Seciirity

Street

New

N.

Bell

Curb Exchange

Dealers As'i'n
York 5, N.

Teletype NY

Y.

1-8S7

LOCAL STOCKS

New York 6

39 Broadway

Offerings

Teletype NY 1-1610

Digby 4-3122

BONDS

CORPORATE

Chicago Stock Exchange

Wire to Los Angeles

Direct

Incorporated
Members

Joseph McManus &Co.

STREET

BROAD

; 30

Frederic H. Hatch & Co.

Mgr.

WALTER KANE, Asst.

Established 1922

Wanted:

V

•
'

Lackawanna R. R. of N. J.

Sees fto Large

The

Unemployment

Established

NAM Head Asserts That a Very Small Percentage Need Be
of Work More Than Thirty Days. Says Reconversion Already Under

Ira Mosher,
Out

Way and Employment in
Aug. 16 by Ira

cast

on

of

nation's peaceful millions were

turers.

"No

d

as-?"

and

s.

-

wants

of

Americans

at

without

peace

that

realizing
t

take

will

it

e

m

e

r

n-

dous manpower

#

produce,*

to

distribute and

service the

goods
that
people every¬
where want to

buy," said Mr.
Mosher.
needs

"The

other

of

tions

na¬

far greater than
continued,
"and

even

are

own," he
America already is looked to for
the materials that will rebuild the
devastated areas of other parts of
the
world.
We can't manufac¬
ture and distribute goods with¬
our

and

workers,

out

that

conviction

it is my firm
production for

to produce just
prosperous,
and' a far more
satisfactory and stable economy,
as did production for war."
peace

is

going

as

Mr.

Mosher

made

in the transition
to

it

clear that

period from war

production many work¬
industries would be
with problems of adjust¬
but he predicted that a very
percentage need be out of
for more than 30 days.

peace

ers

in

faced

ment,
small

work
He

casts,
the

many

said

not

on

results

conducted

1,700

based

he

guesswork,

of

by

of its

these

a

survey

the

NAM

of

fore¬

but on
recently
among

13,000 member com¬

panies, as well
ment

as upon Depart¬
Commerce reports that




which
Mr. Mosher based his predictions
revealed that 61% of our manu¬
The

Mosher

Ira

U. S. Guarantee

RHODES-HAVERTY BLDG.

Teletype AT 288

American Locomotive

ATLANTA l, GEORGIA
Long Distance 108

-

Old

Brill
ployment in this field has already
declined from the wartime peak
by approximately 3 million per¬
sons.
This means that a large

the readjustment in in¬
dustrial jobs has
already taken
place.
The government records
show
17.2
million employed in

NY Chamber
A

NAM

upon

practi¬
reconversion problem and

facturing
cally

survey

no

face

no

delays

on

count.

on

peacetime production.

The

due

to

great

layoffs

reconversion will involve

unemployment
of
very
short
duration—varying from one day
to
four weeks.
The number of
workers

ployed

who ..might

for

more

be

than

amounts to less than IV2

unem¬

30

days

millions,

according to the survey.
A

careful

in

analysis of the time

will be back on the job with¬
12 weeks from the start of re¬

conversion.

the
employees in manufac¬

Government
number of

turing

reveal

figures

the

involve

return

housewives

to

the

of many
home and a

good many young men
will

back

go

to

and women

school,"

Mr.

predicted.
"These will be
voluntary withdrawals from in¬
dustry.
Large numbers of pa¬
triotic
citizens
have
neglected
their homes and education to get
into war work and produce ma¬
terials for our armed forces.
The

on

the fact that em-

proportion

high

of these people
desirable

it necessary oT

will find

bafck to their normal pur¬
suits.
On the other hand, thou¬
sands of war veterans will be re¬
instated
in their old jobs and
to

required to reconvert in situations
where the changeover will take
more than 30 days, indicates that
most of these IV2 million work¬
ers

the

in

prospect
will

changes in
coming months

employment

Mosher

of

majority

"The

go

,,

4\

Corporation
Preferred

1 Wall St., New York 5, N. Y.
Teletype NY

Digby 4-7060

hbSB

,

end

to

Petrillo

so-called

the

tax

on

musical records and also would

be

readjustments in
business will be temporary.

have

concerns

that ac¬
Furthermore, only 11% of
all
manufacturers
will - require
more than 30 days to get started

will

that further
this sector of

turing field, suggests

,

.,a;;!'->•;<{

Members New York Stock Exchange

that the

warning

,

GUDE, WINMILL & Co.

Royalties to Unions

of

part

Opposes

Preferred

Old

f

collection
ofi royalty payments by labor
production.
:
unions
on
the
commodities or
"Even at that period of recon¬
they produce or handle
version when the most people are manufacturing at the peak of war • goods
would, if generally applied, cre¬
out of work," said Mr. Mosher,
production in November,
1943.
"employment
in
manufacturing This total was down to 14.6 mil¬ ate a "super-government" which
will not drop below that of 1939." lion by V-E day and has declined in time would destroy the Ameri¬
can economic system, was sounded
He emphasized
that manufac¬ further since then.
in
a
report that was
recently
turing, alone, would supply only
Estimates of post-war employ¬
made public by the Chamber of
about one quarter of the nation's
ment in manufacturing range be¬
jobs, but pointed out that pro¬ tween .14 and 15 millions based Commerce of the State of New
duction in factories was the key on the NAM survey, which in¬ York.
The report, which originated in
to scores of other types of jobs in
cluded the jpost-war plans of more
transportation,
wholesaling, re¬ than 1,700 companies. The fact the Special Committee on Indus¬
Problems
and
Relations,
tailing and services, as well as the that recent employment figures trial
principal factor in the markets for came so close to the estimated urged enactment of the Bailey
the products of the farm.
post-war levels in the manufac¬ bill (S. 754.) which is designated

s

-

the,

at-

look
n e e

anticipated spend¬
ing $9 billion for new plants and
other improvements for peacetime

7,000 industries

Flf11^
J

one can

fore¬

the National Association

Mosher, President of

Manufac¬

York, Lackawanna & West.

1894

1939.

Manufacturing Will Not Drop* Below

Jobs—lots of them—for the

New

Robinson-Humphrey Company

a

bar

a

of

coal

mined.

the

same

manufactured
the report

as

or

a

sales tax on

processed goods,

Ohio Match Co.

Frederic H. Hatch &(&

for

V "Royalties

Y.

N.

Bell

collected
which

or

Security Dealers Ass*n
New York 5, N. .Y.

Teletype NY 1-897

'

\

the

benefit

of

really

"If royalty taxes

coal,

iron,

tire

production

ters

be

placed on
production,

are

and

numerous

cerned, the collection of royalties

Business
in the- future will be finding itself

cannot

government

steel

ore,

will assume such vast

that

for

tax

by
the
unions" over
control whatever. is ex¬

no

by the members of the, union.

private benefit,
supported on any

sales

and

A

Incorporated
Members

63 Wall Street

other articles by each union con¬

said:

labor unions' treasuries are
a

-

Associates, Common

ercised either by the

Pointing out that such royalty
taxes affect the public's pocketbook

A. A A

Sugar

L.

royalty tax of ten cents on each

ton

Preferred

Eastern

against the proposal of

Lewis, president of the
United Miner Workers, to collect
John

American Cyanamid

ground of public policy.

our

proportions
Will be

economic system

destroyed.
stand

Furthermore, as niat-.
now,

the

money

col¬

unions can be u&ed for
drives for unionization, for

lected by

super-government, new
public paying the financing strike benefits, |or .po¬
bills, while millions of dollars are litical campaigns, for labor lobbiers in Washington, all tb an
extent which
would be against
tion
such
as
the
airlines,
are

subject

to

a

and the general

t

many

will seek new ones.
also will be a shift of

"There

out

workers
back

to

of

various

the factory and
non-manufactur¬

ing industries from which many
of them came,
industries such as

farming, service
and

some

industries, trade

branches of transnorta-

widely expected to take up any
residual slack in manufacturing
employment
that

source.

or any

overflow from

Small business en¬

terprise and partnerships are ex¬
pected to increase substantially."

public policy."
Lewis

the

R.

Chairman of
which drbw' the

Gwyn,

committee

report, will ask its approval at
the monthly meeting of the chamber.

■

•a

>

THE COMMERCIAL & FINANCIAL CHRONICLE

PANAMA COCA-COLA
Quarterly dividend paid July 16, 1945
DIVIDENDS:

$1.75

(to date)

1945

—

Common

^

1944 $2.75

Analysis

Common

Pacific Coast

;

Securities

vv|;

\

Southwestern Public Service Co.

;

v

Orders Executed

'

Common

request

on

'

Public Service Co.' of Indiana
1943 $4.50

—

Approximate selling price—30
New

Delaware Power & Light Co.

U

$.50

—

Thursday, August 16, 194|

on

Pacific Coast Exchanges

Bought

■—r

Sold-—Quoted

,

74
Telephone:

;

•

■'•'■V

\/¥'y

'

1879

ESTABLISHED

'
«■

Schwabacher & Co.

Paine, Webiikk, Jackson & Curtis

Trinity Place, New York 6, N. Y.
BOwling Green 9-7400
Teletype: NT 1-375

"

i

'
1

Established 1914

Members

"
\

New York Stock Exchange \
York Curb Exchange (Associate)

,

New

Trade

Chicago. Board, of

New York 5, N. Y.

14 Wall Street

Consolidated

Public

Carbon Monoxide

Benguet

Eliminator

Mining

How Will Atomic Energy

American Insulator

United Artists Theatre
French

Dutch,

Belgian,

Circuit

shares

bonds &

Swiss

Securities

British

Inc.

M. H. Rhodes,

Teletype NY 1-928

COrtlandt 7-4150

Private Wires to Principal Offices

Affect the Utilities?

San-Francisco

,

In the "Chronicle" of May 17, 1945 .(page 2181) the writer, in a
discussion of potential scientific developments which might adversely
affect the electric light and power industry, made the following
statement: "Only the development of atomic power, in a form adapt¬
able to small household units, i would be likely to put the utilities

f

Philippine Securities

& other

Utility Securities

V

completely out of business.
And this is a scientific dream which,
with our present accelerawhich the industry has two-thirds
of engineering
progress

Monterey
'-¥¥¥:■¥"■

—

Santa Barbara

Oakland

—

Sacramento
'.V,'.- '■¥:¥. ■¥¥'

—

Fresno

:

Tomorrow's Markets

even

F. BLEIBTREU & Co>

tion

Inc.

York 5, N, Y.

79 Wall St., New

Telephone HAnover 2-8681

V

Tel. WHitehall 4-6430

Tele. NY 1-2500

LINESS

passing day for

■.

€Si>ll9iT SHAKES
We suggest:

♦Riverside Cement $1,25

„

,

,

,

United Brick & Tile

.

Cumulative Class A
about 14.

♦Seatrain Lines "A"

$14,35,.. .market

about

Arrears

$3.98....market

about
and

about

*Memo.

The

request

on

13.

I

<

good speculation

a

as

♦Riverside Cement Class B

available.

•* circular

.

elements

of

'tick.'"

($1.40

■:

„

♦Consolidated Cement Class A Cumulative)
Arrears

transmutation

plication of electric power. Small
and inexpensive units producing
atomic energy seem out of the
question until we have gone • a
long way further toward under¬
standing
what
makes 7 nature

Upson Company Com.

apparent with each

more

or-

(breaking up the atom and re¬
molding-it) require huge pieces
of apparatus and tremendous ap¬

T I ME
Becomes

J.W.Gould & Co.

LERNER & CO.
Investment

Securities

Boston 9, Mass.

10 Post Office'Square,

New York 5

120 Broadway

Tele. NY 1-2312

COrtlandt 7-4550

Teletype Bs 69.

Telephone Hubbard 1990.

Bealei-Biokei Investment

revelation that our scien¬

teamed with British;"'j re¬
search and supplied with inex¬
haustible Army funds
and re-;
sources have solved the secret of
mass
atomic disintegration, is of
vast interest to American busi¬
ness.
President Truman in his
initial statement indicated that in
the
indefinite
future
the
new
tists,

But obviously the matter

dollars and cents cost is as

Recommendations and Literature
Statistics

tation
Vilas

&

Discussion of stock as a dividend

Wall Street,

payer—H. Hentz & Co., 60 Beaver
Street, New York 4, N. Y.

49
5, N. Y.

'

Also available are

certain

and

bank

insur¬

sion

of

ance

issues—Huff, Geyer & Hecht,

67 Wall

122

;

Dillon

Preferred Stock Guide—Data on
public utility preferred

the

Situations—Three

current

B.': W.

Pizzini

issued

&

Co., 25
Street/New York 4, N. Y.

bonds—memo

new

on

issue—John

Dane,
516
Canal
Building, New Orleans 12, La.

at¬

in

Speculative

Berkshire

by

ter

4':/-

on

memoranda

are

Chicago, Wilmington & Frank¬

lin Coal, Chicago &

Lines,

Collins

Walker

Kansas

New York 5, N. Y.
■Also.fifteen stocks in the same
category selling between 10 and
'

Spinning—De¬

Company, Landreth Building,
'¥[^\¥

St. Louis 2, Mo.'
Also available

Stocks—

.

Fine

scriptive circular—Scherck, Rich-

Broad

way,

'

Peck,

5,N.Y.

dated

Selling between 1 and 10 which
appear likely to participate in the
return1 to
peacetime economy—
Brand, Grumet & Ross, 120 Broad¬

30.

&

Railroad

of

issue

Quotations,

Twelve

Rail¬

Point

West

&

Avoyelles Parish, La.—Consoli¬
School District No. 1 non-

'

..

situations—contained

Securities

Street,

stocks—G. A. Saxton

Y.

Railroad

on

ferred

Dry

City
and

Southern Air

Radio,
Goods

Public

Ely

Common,

Insurance

'

La

&

Co.,

209

Church

Street,

New

Haven 7, Conn.

American

Forging

&

Socket

Company—Analysis of current po¬
and
outlook
De Young,

sition

Larson

Plant

Manufacturing Preferred
Common, Old Ben Coal Com¬

&

Tornga, Grand Rapids
Building, Grand
Rapids, Mich.
Bank




of energy derived from

coal; sec¬
ond, the ^abilityto control theirate
of - release
of energy from the
atomic breakdown so as to make

of the

new

power source.

is

Uranium

development

a

very

refractory

metal, difficult to obtain in pure
form,
and apparently not too
plentiful.
The refining cost is
ligh, and the process of separat¬
ing the rare and unstable 235isotope molecules from, those of,
higher weights is perhaps still
more
expensive.
The total cost

well exceed that of obtain¬
radium (itself a product of
the slower breakdown of uranium

may

atoms). If the final product should
cost thousands of times as much

coal, it might not be commer¬
cially worthwhile to use it in

as

place of eoal even though it deivered
thousands
of times as
much

energy.

would

seem

Its

greatest

use

to be in aviation, as¬

suming that it could be adapted
replace aviation gasoline; and

to

possibly later in automobiles.

and

to

power

reduce

their farms

run

labor

costs.*

of

atomic

power

no

Street, New York 5, N. Y.
Central Railroad of New Jersey

(Continued

Newbur^er &

on page

•

stocks

Until-

break critical

levels, retention

the

the

before

oped

week

was

Russia's entrance into

over.

war

as some

wasn't

surprising

so

Before V-E

believed.

Day James Byrnes, in a reply
as
to when he thought the
Soviets would

in, said:

come

"Ninety days after V-E

Day.?

exactly that Stalin declared

be

the increased
residential

in

war

The

industrial
ness

distribution.

utilities
and

might

some

commercial

busi¬

sized

units

be¬

available
for
generating
electricity from the new fuel. But
seems highly unlikely that home
come

it

would

want

"fuel": in

their

owners

new

to

use

own

'

The
another

lose

smaller

as

against the Nips.
r>'

of business

amount

that number of days

was,

of

came

*

*

❖

Jap peace talk was
piece of news which

late last week.

But that,

too, could not be classified as

completely unexpected.
-

(Continued

on

page

The

735)

the

homes

to

produce electricity because of
dangerous character and the
heavy cost of apparatus designed
to use it. We don't use explosives
its

to

run

of

coal, and for the

the

family furnace, despite
the fact that they could deliver
many times the amount of energy
obtainable from the same weight
would not

lamborn & co.
99 WALL STREET
NEW YORK 5, N. Y.

sugar

same reasons

want

to

employ

a

Exports—Imports—Futures

DIgby 4-2727

atomic

disintegration.
But most
very
heavy metals are
with the exception of lead,

of; the
rare,

(Continued

on

page

Established

1850

757) J

H. Hentz & Co.
Associated Gas & Electric issues

736)

Members

'V

Associated Electric 5s 1961

New

York

New

York

New

Portland Electric Power 6s 1950

Boston Terminal 3V2S of 1947—

—

bearish,

; com¬

are

While

this
done
gradually.
The
scrapping obsolete facili¬
ties could probably be met from
could

cost

Central Public Utilities 5Vzs 1952

Analytical report describing reor¬
ganization status and proposed
plan—Greene
&
Co.,
37
Wall

Bonds —A study

Long-

pletely

signs

and substitute new apparatus,

we

change in the
transmission and distribution fa¬
cilities of electric companies, in
cause

strength.

either
confusing or

term

It

power

"Adaptation
would

to revival of

utilities might have to scrap some
of their fuel-burning equipment

stations would
super-explosive.
probably be the last to adopt it,
It is possible, of course, that
since the question of weight-sav¬
further research will open the
ing would be much less important
than in moving vehicles.
Presi¬ way toward use of other heavy
metals instead of uranium, as a
dent Kellogg of the Edison Elec¬
source
of intense heat through
tric
Institute
recently
stated,
Central

indications point

Short-term

-.Wj:
practical use of it, and third, the is'' advised. £
amount; of uranium that can be
obtained practically."
By WALTER WHYTE
;
If the new "fuel" proves to have
/,
enormous possibilities for: cheap
production of electricity, it might was written there was no in¬
greatly; accelerate the use of elec¬ dication of
any of the three
tricity in household appliances of
all kinds. If .residences could use pieces :.of news which devel¬

Steel Products Engineering,

—

National

amount

same

&

Co.—

Memoranda—Chas. W. Scranton &

of

cost

with The cost of the

Says

Pre¬

and Universal Match.

Life

lowing

Choate

mon,

Aetna

fol¬
information: ; First, the
producing it compared

Common,

Service

before

Even

potential source

of .energy we must have the

of, electric

impor¬

ing

N. Y.

road—Circular—Adams

callable

tractive

Broad

15

Co.,

63 Wall Street, New York

&' Co., Inc., 70 Pine Street, New
York 5, N.

Re¬

Fort¬

the

outlook—-Eastman,

and
&

New York 5,

unlisted

common

and

Ardeh Farms Co.—Circular

Atlanta

and

Rail¬

of

circulars

Comment

growth

&

Company, Inc., 123 South Broad
Street, Philadelphia 9, Pa.

;

memoran¬

nightly Investment Letter.

Preferreds—

tabulation—Stroud

Statistical

Company,

search

Street, New York 5, N. Y.

Non-Callable

on

a

Maryland

Western

dum
way

Review—Current discus¬

News

Traction—

.&

tant as the scientific

to sent!

Memorandum

—

Hickey,

New York

Light

American

I. C. C. Comment on Transpor¬

this

electricity as cheaply as industry
(of course the distribution cost is
greater), .house heating and air
conditioning, with automatic con¬
trols, would soon be available to
product might replace or compete- the average home-dweller. Farm¬
with coal, hydro-electric, power,; ers, could make increased use of
etc.

It is understood that the firms mentioned will be pleased
interested parties the following literature:

investments.

considering

unlikely for another cen¬
All our present de¬
vices for dealing with destruction

DEALERS

FOR

its

of

tury Kor-so.

New York 4, N. Y.

32 Broadway,

.

seems

PETER BARKEN

York

Commodity
Chicago
New Orleans

Stock

Exchange

Curb

Exchange

Cotton

Exchange

Exchange,
Board

of

Inc.
Trade

Cotton Exchange

And other Exchanges

N. Y. Cotton Exchange Bidg,

Gilbert J. Postley & Co.
29

BROADWAY,
Direct

NEW YORK 6,

Wire

to

Chicago

N. Y.

NEW YORK 4,
CHICAGO

»

DETROIT

GENEVA,

N. Y.
PITTSBURGH

SWITZERLAND

J.

Volume 162

THE COMMERCIAL & FINANCIAL

Number 4412

Vf"*,.* ,"|t^";.

735

CHRONICLE

SALT LAKE CITY

WE SPECIALIZE

IN

For Banks—Dealers

^

Utah Power &

Light

Active

—-

Brokers

We

PAUL A. MEINERT

MR.

Trading Market

Preferreds

pleased to announce that

are

'

and

General Public Utilities

Corporation

■

SMITH

RAY A.

MR.

Common Stocks—When Issued

Edward l. burton
'

8ccompany

>

are now

'
,

ESTABLISHED 1899

to

be received in

160 S. MAIN STREET

Lake City

Salt

SYSTEM

BELL

i,

TELETYPE

associated with us

exchange for

Utah

Associated Gas & El.

464

SU

Utah

Oldest Investment House in

GOSHIA & CO.

Corp. & Co. Securities

(under Reorganization Plan)
INVESTMENT SECURITIES

SPARTANBURG

ips
Southern
New York 5,

LAW & COMPANY

A.

SPARTANBURG, S. C.

68 William

Teletype SPBG 17

BOSTON:

-

Stock Exchange

)

Devonshire

201

INVESTMENT

Knowledge

event

Concrete

St.

to foresee.
.X"';,

I

'■ ■

,,

■'■■■■■'*

* :>R:XXXlXX;fX

*

-

from

recall

college

my

physics how my instructors
used
casts
was

And

for Dealers

is

to realization.

that either
tion

a

or

But to imagine

single
group of
a

tions will alone

this

I
closer

the fairy stories

now

corpora¬
corpora¬

benefit from

splitting shows a

atom

gross ignorance of
whole thing means.

what, the

STOCKS

•

Pislis, Bowling & Co.

Facilities

,

New

Member

York

for Investors

->

X

Their destructive power was

terrifying.

impulse is how to profit by
it.
It immediately jumps on
the stocks of the companies
it in the belief

on

that

how such fantastic power can

be vested in any one company
or
group of companies.
The
atomic application makes all

present, methods completely
The assembly lines,

obsolete.

everything

blast furnaces,

have lived with and

by,

How

become extinct.

here

from

that same
pletely
released in a split- to fact
Yet,

power now
second can be harnessed, for

and released grad¬
ually to turn engines, dyna¬

peace uses,

mos

and other involved mech¬

that

anisms
modern

make

society.

up

our

To say that

we

now

can

the

be

com¬

no relation
know it today.

with

we

as

will

on

new,

But before I scare you

into

Municipal Jews And

paralysis, allow me to point
that

all of the above is

long-term in character.
the short-term

group or one nation can,
to
control such a force is flying

For

still have

we

We
was

know

on

the

Germany
of the atomic-

ada have shared in the

research.

Amer¬

It is hard to

Last week

take

a

industrials
end of

viously
rail

we saw

nose

the rails

dive while

climbed up.

the Jap war was

responsible

decline.

the

The
ob¬

for. the

From the way

»

Despite an estimated loss of
$65,000 in revenue through failure
of the Hialeah race track to op¬
Winter, the town
name began its new

erate last

of the
fiscal

July 1 with a surplus of
$52,000. The surplus, according to
P.
E. Hackney, City
Clerk, re¬
sulted from the action in putting
year on

until it breaks

37, hold

Coast " Line,

Atlantic

bought at 66 V2 should also be
retained, unless the stop of 64
is
broken.
You also have
some industrials which I see
no reason to sell.
Hold A. M.
Byers bought at 19, stop 16;
Jones & Laughlin at 35, stop

Russia they were sold Friday it 33; White Motors bought at
doesn't have physicists who looked as if everybody
29^, stop 28, and Steel at 56,
aren't as close to solving the thought they were war babies.
stop 65. Also keep buy order
atomic secret.
We just man¬ Well, they'll be making less in Paramount at 291/2-301/£,
aged to get there a few steps

from here on,

that's true, but

they have such big excess
*
*
#
profit taxes that they can
All this leads to the belief take a big cut in gross and
that
the stock market, up still have larger net than they
a




showed jup to now.
*

*

*

In any case, you
cago

have Chi¬
& Northwestern at 401/i

County's

of

increase

an

$4,965,964 over the previous
Increased valuations on cit¬
grove
properties accounted

year.
rus

for

most

accord¬

of the increase,

W. S.

ing to County .Tax Assessor

Bell Teletype NY 1-1227

property w i t h
fully paid advanced in
valuation from $76,917,000

Non-exempt
total

$78,304,000. Homesteads, how¬
ever,
jumped from $51,225,000
to $57,504,000.

to

i. ~l:.i

■

77;

*

'

in assessed

and

39%

of

tions

*

*

*

■■

increase

An

current fiscal

is the intelligence emanating

from
P.

valua¬

reduction in

a

the tax levy for the
year

Lakeland's

and

Cade,

Mayor

City

Charles Larsen.

levy

Thursday.

William

Manager

The present tax

17 for

of 23 mills includes

operating

debt service and six for

Whyte

expressed in this
article do not necessarily at any
time coincide with those of the
views

They

are

those of the author

presented as

only.]

new

the

General

next

adopt

home

rule

indicated

officials

debt

service

fiscal
to

levy

may

year

13 mills.

will

not

for

that
the

be pared

The operat¬

he

known

of the annual
during the present

pending adoption
budget

levy

submit

and

of

form^
them

to

the various counties and cities, for

acceptance or rejection in referen¬

dum^;
must

of the optional plans
the initiative, ref¬

one

include

erendum and recall.
Cities

V

counties

and

mitted to make zoning

are

per¬

laws, elim¬

inating the need for local amend¬
ments to the constitution or

lative

legis¬

changes in municipal char¬

ters.

subdivisions

Political
mitted

contract

to

Bonds

may

approval

of

be

a

^re

per¬

them¬

among

selves for exchange

of services.

issued on the

majority of the

registered voters in an election.

3% additional bonded

A

debtedness
for

may

emergency

be

must

be

build or

and

but it
five

within
,

issue

in¬

contracted

purposes;,

retired

Counties
may

.

municipalities

revenue

bonds

to

acquire electric and gas

utilities.
The

State

thorized

to

Legislature;

is

au¬

provide methods, for

merging county and
mpntc

month.

Assembly-

optional

years.

down

ing

that

must

,

Sparkman.

the

—Walter

Chronicle.

owned by the State, never¬

City

*

*

More next

fThe

*

now

theless, Hillsborough
1945 tax rolls show

costs.

stop 28 V2.

*

cataclysmic change
such as it never had to weigh
before, doesn't know what to
make of it.
The public's first
against

is

taxes

and

believe that Japan or

ahead.

YORK CITY

NEW

•
•

=

Exchange

rolls,

tax

*

#

♦

on.

splitting discovery. We also
know that England and Can¬
ican

yardsticks of

market action and reaction.

that

eve

the. old

■{XXX-'

*

*

use

Stock

lots back on the Georgia's New Constitution
which yielded about Approved by Electorate
$410,000 in taxes. ,
A new constitution for the State
The town, it is pointed out, has
Florida Cities Report
of Georgia, replacing the 68-yearsucceeded in restoring to the tax
Favorable Fiscal Status
jbld document previously in force,
rolls all but some 30 of,|he origi¬
was approved by the' electorate on
The
Florida "Municipal Rec¬ nal total of
6,041 lots which had
In addition to providing
ord" contains a numbed of reports reverted to the State or the Ever¬ Aug. 7.
a
greater degree of "home rule"
relative to favorable fiscal devel¬
glades Drainage District for non¬
for the State's local governments,
opments in the State's communi¬ payment of taxes. The town ac¬
the new charter of basic laws also
ties. The new budget for St. Petquired the properties at $1 a piece.
provides for the abolition of 1,000
tersburg, for example, calls for a
Home building has been go¬
local school districts and prohibits
slash in operating expenditures of
ing apace in the municipality in
the establishment of any new in¬
$561,863 and the tax rate for the
recent months, more than 100
dependent
city school systems.
fiscal year is indicated at 21 mills,
new
structures with FHA fi¬
Henceforth, the county will be the
a reduction of 4 mills from the
nancing having been construct¬
school unit. Among the provisions
previous levy.
ed, with 63 being located in one
of interest to local governments
The
"Sunshine City," it is
subdivision where only one had
and to dealers and investors in
further noted, has piled up the
existed for some time.
Georgia municipals are the fol¬
tidy sum of $1,280,000 in two
lowing:
funds
for
post-war
improve¬
Home
rule
for
municipalities
With three large items added to
ments, thus putting into prac¬
and counties is mandatory.
The
the tax-exempt list,, including the
tice the famed "rainy day" in¬
constitution contains a provision
Gandy Bridge, at $834,300, which
junction.

same

out

its

than 6,000

more

Notes

one

in the face of realism.

BROADWAY

120

Tel. WOrth 2-4230

♦

*

Baltimore

Members

YORK 4, N. Y.

HAnover 2-6286

who worked

with

Trading Department

Mitchell ^ Company

Exchange

Curb

BROAD ST.; NEW

25

XMX'ixfXXX market, which represents
mass opinion, gauge its appli¬
The first two bombs dropped
cation?
In fact, I think that
on Japan were experimental.
everything the market does

\'c.V. \X:;-^yv'XX *

our

associated

now

in

Only

>

only such companies will
to weave fantastic fore¬
benefit.
I'm*! just thinking
if, as and when the atom
aloud, but I ;.jCfLn'.t imagine
split. Well, we did it.

heard years ago appear

Illinois

Continental

Corp.

~

.

I1IRT

the New York office of the
Nat'l Bank & Trust Co. of Chicago)

(formerly with

what effect that will have on

security markets is impossible

pleased to announce that

are

BONDS

Experience

.
.

And

bomb.

the' atomic

1945

15.

MUNICIPAL,

INDUSTRIAL

&

.

was

AUGUST

Teletype: NY 1-584

v

?

RAILROAD, PUBLIC UTILITY
V

297

MR. DAVID O.

(Continued from, page 734)

real unexpected

:

Memo

Walter Whyte Says—
only

.

.

Street, New York

GOVERNMENT,

Tomorrow's Markets
V-

■

New York

We

1892)

Members New York

L. D. 51

TELETYPE TO

PRESSPRICH 8C CO.

R. W.

"

(Established

TELEPHONE MAIN 2126

*

Telephone: BArclay 7-5660

Broadway

120

Textile Securities

1

Corporation

TOLEDO 4, OHIO

OHIO BLDG.

517

New York Hanseatic

city govern-

THE COMMERCIAL & FINANCIAL CHRONICLE

736

Thursday, August 16, 1945

SPECIALISTS
Over-the-Counter Quotation Services

'v;; V

in

For 32 Years

Real Estate Securities
Since

REAL ESTATE

1929

SECURITIES

NATIONAL QUOTATION

Seligman, Luhetkin & Co.

Primary Markets in:

v-y'v;

Incorporated

New

Members

Hotel St. George,

4's

4'A's

165 Broadway,

(Park Central Hotel)

Three-fourths of the 1,600 rooms in the Park Central

Members New

great demand.
This
type
of

CO.

York Stock Exchange
Curb Exchange

of

PL., N .Y.

Bell Teletype

ever,

interest

time

cient

Certificate*

to

fixed interest and is
known as 870 7th Avenue 4J/2%
of 1957.
Traded with the bonds
4V2%

pays

and

Mortgages

is

PRUDENCE AND

approxi¬

representing

stock

for the bonds after first mortgage

.

SIEGEL & CO.
89 Broadway,

Dlgby 4-8870

N.Y. 6

$1,200,000

since

~

earnings

Teletype NY 1-1942

interest on

4JA%

after

to

bonds.

makes

a

Add to
$940,700,

compared to an
assessed value of $6,725,000. Orig¬
inal funded debt on the property

front

(eliminating the extra 60%
amortization on the 1st mortgage)

Ambassador Hotel

(L. A.)

and

5/50 W. S.

should

easily

is

Broadway Barclay, Inc.
2/56

bond

Gross

Broadway Motors Bldg.

of

1945

The

1927),:

the

issue.

:

maintained
stories

on

commence

earnings in the first half
was
$82,840 lower than

high

accessible

Midtown Enterprises,

(erected
1925
and
buildings
are
31
and contain a total

of 1,600 rooms.
In addition to its
other features, the hotel contains a

Bell Teletype SF 61 & 62'

*,

Hano, 39 Broadway, New York 6,
Y.

change Place, New York 5, N. Y
Also available is a memoran¬
"
. —' - "*
dum

Consolidated
IN—

on

de¬

recent

10
9,

velopments—Lerner
&
Co.,
Post
Office
Square, Boston

REAL ESTATE

and
Co.—

Elk Horn Coal Corporation
Lawrence Portland Cement

Report on

attractive possibilities
appreciation in these

for

price

on

two

industrials—Morris Cohon &

&

Co.,

Mass.
available

Also

SECURITIES

International Detrola.

circulars

are

Central

Iron

Co.

Riverside Cement.

and

Steel, Kingan

&

New York 4,
-v.:

42 Broadway,

N. Y.

Salle Street,

P.

Forman

Salle

preferred

Realty Trust

6/46

La

w.

s.

—A

Madison

and

Central

Public

Utility Corp. Income SWs of 1952

Hotel

Chicago

La

4, in.

Salle

Street,

The

La

Chicago

Gas

Utilities

and

Salle

Tele. CG 660

Operations cf FHA in
Insuring Mortgages Gained
In Year Ending June 30
federal Housing Adminis¬

tration's

operations

in

insuring

mortgages on existing houses was
the

Also
on

available

are

memoranda

Gruen Watch and Textiles, Inc.

30,

Deputy

FHA

Commissioner Earle S. Draper an¬
nounced

on

July

14.




Analysis—W. J. Banigan & Co., 50
Broadway, New York 4, NT Y.

River-Cotton

Dan

ing
situation—Scott, Horner &
Mason, Inc., Law Building, Lynch¬

II.

II.

randum

Co.—de¬

Chicago 4, 111.

,/

Robertson

Co.—Memo¬

reconversion outlook—

on

Strauss

Bros., 32 Broadway, New
4, N. Y.
available

a

Stromberg-Carlson

"Rock

■W-.v

on

memo

and

of general market

leaflet

a

comment.

Island"—study
reorganization

of

im¬

profit po¬

Inc.-

tentialities—McLaughlin, Baird &

discussion — Steiner.
Co., 25 Broad Street

Reuss, 1 Wall Street, New York 5,

&

Co.,

N.

Y.

4, N. Y.

Midland

Realization

Utilities

and

Mid¬

Common—Memo¬

Schenley Distillers Corporation
articles they have
been running in the Chronicle-

—Brochure of

write to

Mark

Merit, in

Schenley
350

care of
Corporation,
New York 1,

Distillers

Avenue,

Fifth

N. Y.
Midland

Utilities

Midland

and

Realization Company—A study of
Values and Distribution, prompted

of opinion pointing
to near-term liquidation of utili¬

by

consensus

ties

and

La Salle

Also

companies—
Co.; 208 South

W.
Gould & Co., 120
Broadway, New York 5, N. Y.

Serrick Corp.—Current analysis

statistical

information

Garrett

on

brochures

are

Also
look

National Terminals Corporation
&
Co.,
231
Street, Chicago 4,

—circular—Adams

'

is

memoran¬

a

a

for

memorandum
II. K.

the out¬

on

Porter Co.

Simplex Paper Corp.—reportNoble & Co., Michigar
Trust Building, Grand
Rapids 2
Mich.
Standard

Fruit

and

Steamship

of

interesting

Corp.—Discussion
peace

prospects

of

a

company

operating profitably under war
conditions—Pitman & Company,
Inc., Alamo National
Building,
San Antonio

.

available

Sills,

—

White,

Co.—Anal¬

ysis, for dealers only—C. E, Unterberg & Co., 61 Broadway, Nev
York 6, N.'Y,'': /V.;;:;Vw:;

III.

outlook

Street, Chicago 4, 111.

.

Pont, Homsey Co., Shawmut Bank
Building, Boston 9, Mass.

South La Salle

'interesting

Salle

for

Corporation

Radiator

on

Minton & Co., Inc., 209 South La

Street, Chicago 4, 111.
available

Also

Seatrain Lines "A"—Memoran¬
dum—J.

realization

Fred W. Fairman &

5, Tex.

Stromberg-Carlson Co.—Statif

tical

memorandum —White

<

Motors

Company, Mississippi Valley Tru:
Building, St. Louis 1, Mo.

New England Lime Co.—Circu¬

Continent Airlines, Rohr Aircra

dum

Howell

on

and American

Electric

Service Co.

Also available

lar—Dayton Haigney & Company,
Boston 10, Mass.

75 Federal Street,

data

are

on

Corp.,

Ampco Metals, Inc.,
Pickering Lumber Corp.

Mi

an

Stromberg Carlson Company-

—Analysis—Ira Haupt & Co., Ill
Broadway, New York 6, N. Y.

memorandum—Kitchen & Co., K
South La Salle

Street, Chicago

Pathe Industries, Inc.—Study of

:v

situation

current

General Industries Co.—Recent

Also available

and

Vacuum Concrete Corp.—Men

post-war

outlook—Amott,
Baker
&
Co.,
Inc., 150 Broadway, New York 7.

of

Cross

condition

pects—F.

H.

Company—Analysis
and

post-war pros¬
Koller & Co., Inc.,

Ill

Broadway, New York 6, N. Y
Also available are analyses of

DunningcoJor—Descriptive

Y.

Pittsburgh
study—First

,

70 Pine

Gro-Cord

Rubber

outlook—Caswell

South

La

Salle

Railways

Colony

—

Current

Corporation,

Street, New York 5, N. Y

Company—

Statistical memorandum on

&

Street,

post¬

Co.,

120

Chicago

3, 111.

Public

National

Bank

&

Trust

for

dealers only—Pulis, Do win
Co., 25 Broad Street, New Yoj
4, N. Y.

Company—Second quarter analy¬
dealers only—C. E. TJn-

York

Corn.—Circular

on

avai1oV>U i®
Thermatomic

°

^emcandum

Carbon

Co.

6, N. Y.

and

cir- a new analysis of Panama CocaEx- ; Cola.

Wellman Engineering Co.—E

scriptive

circular

—

Simons, Li

burn & Co., 25 Broad

York 4, N. Y.
Also available
Fashion

is

Street, N<

a

circular

Park, Inc.

Purolator Products,

outlook

of

Ward

& Co.,

York 5,
late

N. Y.

and

Inc.—Study

possibilities

—

Great

Engineering—descrip

memorandum

Mericka

—

Wm.

J

&

Co., Union Commerc<
Building, Cleveland 14, Ohio,

120 Broad^vay, New

Also available are

American

York Corrugating Corp
on

memoranda on:

Electrolux;

Wellman
tive

in¬

teresting possibilities—Hoit, Rose
Sr Troster. 74 Trinity Place, New
York 6, N. Y.

&

sis—for

terberg & Co., 61 Broadway, New

HajoCa

on

cular—J. F. Reilly & Co., 40

N.

report on Na¬

a

tional Stamping Co.

war

The

Liquidometer Corp., Delaware

June

&

26, Mich.

Rayon, New Bedford Rayon, and
Great American Industries.

ending

in

Riverside

Mills, Inc.—Discussion of interest¬

New England Public Service Co.

Crompton & Knowles—Descrip¬
tive memorandum
Buckley
Brothers,
1529
Walnut
Street,
Philadelphia 2, Pennsylvania.

five

volume

in

York,

report — Mercier,
McDowell &
Dolphyn, Buhl Building, Detroit

during the 12-month period

largest

years

outlook—-Strauss

Broadway, New

Street, Chicago 4. 111.

—

The

32

Corp.—Circulars—

Salle St., Chicago 3, 111.

Tel. Central 4424

Bros.,

Franklin Railway Supply Co.—

Hicks' & Price, 231 South La

FIRST LA SALLE CO,

attractive

on

Chicago

•

Consolidated

(V. T. C. and Land Trust Units)

So,

Lumber

Mallory

&

New York

study—Brailsford & Co., 208

South

Transportation Bldg., Chgo.

11

R.

\nalytical
Rouse

Fort Pitt Bridge Works—Memo

Consolidated Electric & Gas Co.

dow Glass.: ■ ■//

proved

Chase Hotel Inc.
St. Louis

Inc.; Mohawk Rubber Co.;

York

tailed brochure for dealers only—
Comstock & Co., 231 South La

Corp.

Cement

A—Bulletin

Class

on

Corp.; Detroit Harvester; Bow¬
ser,

Also

National

(Continued from page 734)
N.

SPECIALISTS

Street,

Nashawena Mills—Circular—Du

Recommendations and Literature

Montgomery St., San Francisco 4

—

Broad

30

Bell

and

large indoor swimming pool.

Dealer-Broker Investment

Inc.

J. S. Strauss & Co.
;

Stern,

and Magna vox Company.

5/64 W. S.

155

&

dealers

4/52 W. S.

.

feld

New York 4, N. Y.

the

to

Governor Clinton
"

possibilities for semi-in¬
and speculation—Herz-

vestment

randum—Doyle, O'Connor & Co.,
Inc., 135 South La Salle Street,
Chicago 3, 111.
v

4-6/48

■

esting

land

City, is but a short dis¬
tance above Times Square with
its theatre and amusement district

Mills,

Hardware;

Southeastern

burg, Va.

Streets,

New York

operations

fund

sinking

and

Avenue

and

year

OFFERINGS WANTED —

•—

Inc.

56th

and

shopping and business sections of
the city.
Moreover, the buildings
are
relatively modern and well

to

Pub.

Seventh

of

55th

between

Alabama

Shoe;

Libby, McNeill & Libby—Inter¬

$10,878,000.
occupying the entire

$900,000.
This
reduction should be effected this
reduced

Macfadden

on

The hotel,
block

Mfg.;

American

Douglas

Co.,

120 Broadway, New York 5, N. Y.
Also available is a memorandum

total value for the prop¬

$4,184,700

the bond issue until the loan has
been

Descriptive

—

.

this the first mortgage of

was

from

the

for

244,000

approximately 80% and aire junior
to an institutional loan of $940,700
(reduced

depreciation

$416,743 (10.27% on the bonds)
from
$391,021
(9.64%
on
the
bonds).
'
The current price of 80 on the
bond issue places a value of $3,-

erty

1942).
This loan calls for $130,000 annually for interest (4V2%)
and amortization with 60% of the

before

but

and federal income taxes, rose

mately two-thirds the ownership
of the property.
The bonds in
the amount of $4,055,200 sell at

REAL ESTATE BONDS

Kingan Company

circular—C. E. de Willers &

earlier at $1,775,695.
How¬
costs were cut and earnings

year

purchase enough
merchandise
to
replenish their
much depleted stocks.
The suites
will give them the opportunity of
bringing their families with them.
The bond issue on the
Hotel

Dlgby 4-4950

NY 1-953

TITLE CO.

out-of-town

to

Scovill

Inc.;

TACA Airways; American Win¬

Sterling Engine.

buyers who will have to prolong
their stay in order to have suffi¬

and Sell:

We buy

This
to attract capacity patronage.
aggravated by returning soldiers
suite of rooms with hotel service will be in

a

United Brick & Tile Company.

are

accommodation

appeal

also

will

Members New York
40 EXCHANGE

Hotel

feature, we believe should continue
Lack of housing facilities will be
and the'convenience

'&

on

with semi-housekeeping facilities.

small suites

in

arranged

Beacon Hotel, 4's

SHASKAN

Co., Board of Trade
Building, Chicago 4, 111.
Also available a detailed report

Park Central Hotel Should Benefit by Peace

N.Y. Athletic Club 2-5's

Co.—analytical study

—Kneeland &

leal Estate Securities

•

San Francisco

Interstate

870-7th Ave.4K's

/

Street, New York 4, N. Y.

Chicago

HAnover 2-2100

Broad Street, New York 4

41

46 Front

Association

York Security Dealers

BUREAU, Inc.

Established 1913

Industries:

Brockway

Motors;

Memt

current situation—First Colom

r-nrnorntinp

York

5, N. Y.

70 pine Street, Nev

l«Ai 4Ud#***i

^ .,.

73 7

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4412

Volume 162 '

Wfty.1' |U,^

advertisement

SERVICE TC

IN

SPECIALIZING

NOTE—From time to time, in this space,

:

Ihere will appear an article which we hope
will be of interest to our fellow Americans.
This is an extra article in a series.

J

ON

VU;: BROKERS AND DEALERS

PACIFIC CDAST SECURITIES
OUR

OVER

HANDLED

PRIVATE

DIRECT

SCHENLEY DISTILLERS CORP., NEW YORK

PROMPTLY

EXECUTIONS

AND

QUOTATIONS

WIRE

-J

Two Candles!

Co.

Kaiser 8.
MEMBERS

STOCK

HEW YORK
NEW YORK

20

STREET

PIN E

YORK

NEW

CURB

how

My,

EXCHANGE

Here

EXCHANGE

BAN FRANCISCO STOCK

RUSS

15DO

EXCHANGE

5

FRANCISCO

SAN

flies.

time

we

are

our

on

BUILDtNGI

second anniversary of

4

this towerlet of type

—and
into

Clarksville, Tennv Bank

third year.
mind

don't

We

BANKERS

INVESTMENT

way

our

on

our

con¬

fessing that we felt some trepidation

Advises

Members New York Stock

Fanners

Other

Exchange and

beginning. We didn't feel

in the

of ourselves; didn't know

very sure

Leading Exchanges

how the readers of this newspaper

Urges Caution Against Boom in Farm Prices and Ad¬
a "One Crop Program."
Points Out Six Tasks

herence to

BROKERS OF BONDS,

*

in its region,

July circular addressed mainly to farmers

In its

"the transition period from war

Private Wires

gives advice regarding

•

Company. We know
now that we have many friends be¬

STOCKS, COMMODITIES

Home Office Atlanta

•

to peace, and urges its clients to be

with

us

some

farming

must make plans to meet
unexpected change that might
be unfavorable; and we also must
be ready to take advantage of any
favorable
opportunities which
might develop.
•
"There is only one course for us
to follow.
We must not speculate.

after 60 days, just like putting a
check through the teller's window

these 4-H and FFA activities

One

for

at the bank*
If we keep them
through- the 10 or 12 years they
run we get good interest.
There

been

is

not

„

us, so we

any

must

We

chances.

too

take

not

must

We

to
readjust our way of living and
working, for a period of time,
perhaps for several months, until
a trend has developed which will
farmers, may find it necessary

show

with some certainty the

us

to what we may look on as
the normal standards of our fu¬
way

will

normal
prepared we

changes take

what

wonder

If

be.
meet

can

are

whatever

We

ture.

we

place without concern.
"We who live in the Clarksville

trade

area

There

nate.

particularly fortu¬

are

lot of reasons

a

are

c'an make these plans for
the future with much greater ease
why

we

and security than can

in

live

who

those

be done by
favored

less

This makes our respon¬

sections.

sibility

greater,

the

all

cannot have an alibi for not

for

,

"Here

.

are

of

coming

the
,

some

abundance

which

we

of them:

of

those

well

are

crops,

qualified to

grow, which are needed for the
support of the armed forces and

which will

provide generously for

the home-folks
the months to

be

our

that

now

and

through

It may also

come.

responsibility to share in

portion of relief which

our

nation must meet.

"Folks who make

figuring

say

that

a

business of

foodstuffs

for

people will be shorter next win¬
ter than in any recent year.
may

be

right.

been

At

least




it

wonderful

a

"That is

We will stick right with

"(2)

this crop program that we call the
FOUR
PILLARS
OF
INCOME.

four crops

Those

just like

ance,

life

and

will

not

buildings.
Prices
suddenly on all

your

decline

four crops,
a

real insur¬

are

you carry on your

and there will not be

failure of all of them in any one

If one crop should fail, or the
prices go down on one, we still
have at least three on which we

year.

depend to carry us through
safely. In addition we have hogs,
and a few on every farm are usu¬
ally
profitable;
milking
cows,
from which a lot of folks are get¬
ting a nice income, and chickens,
which have been,; and are, high
in price and scarce. In some years
we have seen one of our principal
crops fail by reason of bad grow¬
ing seasons, but the others have
always stepped in and held up the
can

farm income

on

is

a

was

not

distress. We will resolve that

any
we

that there

so

will not be entirely dependent
any one crop

for

our

farm in¬

:

"That is

our

second task.

"(3) We will

off the mort¬
gage on the farm.
Pay it off in
full, while the earnings are good,
if

At least pay it far
that it will be absolutely

can.

we

ahead,,
lean

so

years

have

pay

Then if there

ahead

these

of

us

payments

are

will

we

behind

us.

There is much independence to be

enjoyed through being out of debt.
It

is

a

real

comfort.

For

those

who find it

impossible to get en¬
tirely out of debt, who do not owe
too much, but who may not be
satisfied
with
present arrange¬
ments, this bank is ready to make
farm

Durrett

will

furnish full

information.

We will be prepared for

We will be ready

any emergency.
to

make

needed repairs and

when

provements
and

we

prices

lid

the

buy what

can

we

im¬
off

is

need at

willing to pay. We
for
tractors,
plows and other farm machinery
which we need but cannot get
now.
We will be ready.
Those
E
and F bonds can be
cashed,
will

money

another

not

be

can

are

we

have

investment

bought which

which

we can

turn

our

third

"(4)

the

profits

from

and

Future

farm

owners

We

morrow.

will be the

Farmers

and operators of to¬
owe them the very

encourage

them

to

will

worth

not

while.

this bank

year

three

buy

hundred

and

sign

was

a

That's

feed

the

to

Dads

calves.

notes.

The

ness—a

are

con¬

interest. We

occasional

your

to be making in

iegal business—which

you

asked for by your
vote at the

over

boys

-

gaining your good-will in a busi¬

wrong.

made

loans

profit from

progress we seem

that

folks1 think

(

suggestions, and even your criti¬
cisms. And enjoy, of course, the

as¬

the responsibility of taking
projects which they are capa¬
ble of carrying successfully. Some

old

emphasize

hoping to

tinue to sustain your

on

the

occasional taste of

this and about that,

sume

times

reader who doesn't

an

We shall continue to write about

opportunity to make good on
their 4-H and FFA projects, and
must

But

us.

its antonym—■sweetness.
"

like

still occasionally get
a

bitterness only serves to

best

we

letter from

like

;

."That is our sixth responsibility.
"(7) These 4-H Club members

.

a

polls,

decade ago.

a

to
did

overwhelming
little more than

a

.

MARK MERIT
of Schenley-Distillers Corp.

project

Every note was
Now these-boys and
girls do not need to borrow. They
success.

paid in full.

FREE- Send a postcard ot lettei to
Schenley Distillers Corp., 350 Fifth Ave.,
N. Y. 1, N. Y., and you will receive
a booklet containing reprints of earlier
articles on various subjects in this series.

to
have money -for
safe and when we buy seem
their
furnishing money to finish needs.
off the Japs. That's worth while.
"(8) In the post-war years there
"So that is our fourth objec¬
may be a period of many changes
tive. '■-$
in farming. Some folks call it re¬
:.;0
commenting on the preparations
Ceilings and floors,
"(5) What can be more impor¬ conversion.
being made by bankers to assist
tant than a reserve of soil? Right subsidies, quotas and allotments
veterans, the Bankers Association
now, while this Soil Conservation may be removed, and the farmer
pointed out that specialists have
Program is being offered by the find himself relying entirely on

bonds

are

we

are

U.

S.

Government,

we

have

the

life time to get
our
farm land in tip top shape.
It is not a question of not having
the money to do the work.
This
bank is making loans every day
to good farmers who are carrying
on
soil
improvement practices.
These loans will be paid in the
opportunity of

fall

a

settlement

when

the work

comes

for

Lewis Pace and

done.

his

own

resources

that period

more.

once

In

the medical, educational,
reem¬
assurance of a safer jour¬
ployment and loan provisions, so
stability it is
sometimes that
they can qualify as compe-;
called, if the farmers are joined tent advisors and counselors. The
in a group or organization that
advices from the Association also
can speak in behalf of and for the
state:
-'
~
■"?
benefit of the farmer. An organi¬
The creation of specialists will
zation
that
encourages
sound assure the veteran a ready "ear";
thinking and discourages imprac¬ of one who understands his prob¬
tical,
socialistic
or
visionary lems when he visits his home-;

particularly
interested be¬
cause a sound agriculture assures
sound business in a country town.

performed.

-

"

"(6) There is a lot of talk these
days about a farm land boom.
Many people think that farm
lands are getting too high.
We
must

do

prevent
farm

everything
any

we

runaway

Of

can

to

prices on

fea¬

the

including

Bill,

much

schemes.

advantage of
this splendid opportunity.
"So that is our fifth job to be

G.I.

the

ney,

Albert Durrett will be glad to co¬
need money to take

of

tures

of

themselves

informed

of time there will be

operate with reliable farmers who

Folks who live in town

are

"That is number
a

reminder that

strong

eight and it is
chain is only as

a

its weakest link; which
with much force to the

as

applies
importance of having the farmers
joined together through member¬
ship in a strong and sound organi¬
zation."

town bank and in some commun-,

with

ities

than

one

bank

plan"

has

been

more

the.."Rochester

adopted, and a central office cre¬
ated to assist veterans.

The plan derives

the

that

fact

it

its

name

from

first, estab¬

was

lished in Rochester,

city's

N. Y. with the
commercial banks and

six

three savings banks participating.

Advertised

''Veteran's

as

Finan-*

eial Service" offices

were

Jan.

ground-floor

opened

when a
man has the cash money to pay
for what he buys, and he gets
something that squares him out or
takes him to the big road, that is
strictly his business, and the price
he pays is his own concern.
The
danger lies in the purchase of
farm
lands, at high prices, on
credit.
If the agreed price for a
farm is a fair one the purchaser

Special Personnel lo

suite in the heart of the city with

Help Reluming V'lerans

of

should

resources

lands.

course,

pay at least one-third in
cash, and the balance of the price
should be scattered over a period
of several years where the signer

with prices

getting out of control,
exceedingly
dangerous,
and
usually brings unhappy conse-

auences.

While

who knows how to farm.

man

Ours is

us so.

to our readers that we

Oh yes, we
a

,

is

goal.

operated

F bonds of the United States Gov¬
ernment.

what it will produce in
incomes when
in normal years by a

on

the way of money

surplus and put it in series E and

mortgage loans at 4%, to
run
25 years, with annual pay¬ of the notes can meet them re¬
ments, through a large life insur¬ gardless of unfavorable happen¬
ance
company.
Lewis Pace and. ings. A boom in farm real estate,
Albert

tirely

part of the

a

cash, with a guarantee against
loss, when, we get ready.
The

first task.

our

We will take

serve.

into

"Getting out of debt "is

They

year

barely enough.

under control.

"(1) We must produce this year
on our farms, and in our gardens,
an

feed is

being

the plans that we
should make in time of war as a

cribs there

hay and smart farmers have
harvesting every week re¬
cently.
A surplus of livestock

we

are

preparation
peace?

has

come.

and

ready.
"So what

This

our

hay and corn and other
feed for the livestock of all kinds.

in

everything that counts as a pro¬
tection
against
any
business
changes that might blow suddenly
and forcefully like a tornado.
"We are agreed that when the
war is over, and when some of the
controls over our lives and mar¬
kets are
removed, that we, as

lofts and

our

be

many

strong

be

"In
must

a

good we will set aside
nest egg in the form of a re¬
are

telling

friendly business, and we try to
convey

future."
"We who live out here in the<«>
country,
in
an
atmosphere of warning. We have felt some local
plowing and seeding and harvest," shortages.
"Seasons for the remainder of
runs the circular, "are giving seri¬
ous thought to the changes which
the growing season may not be fa¬
will likely take place at the close
vorable. Farm equipment is badly
worn
and impossible to replace.
of the war. None of us can proph¬
esy
with any certainty.
Prices So we must put out every effort
of farm products may go up or
we can to have lots of foodstuffs
they may go down. Income in the of all kinds, with our pantries
form of profits from farming op¬
well stocked for next winter; and
erations may be better or it may
there must be food and fibre to
be worse.
Farm land prices can assure provision and comfort for
be either higher or lower.
There all who are on active duty at the
are no accurate footsteps to guide
battle front.
the normal standards of the

as

have received thousands

of letters

Z55532

"until a trend is developed which
certainty the way to what we may look on

our

cause we

Phone LD-159

cautious in making commitments
will show

industry

to make friends for our

and for

the First National Bank of Clarksville, Tenn.,

w

would react to our humble efforts

INVESTMENT SECURITIES

Ahead
?

DISTRIBUTORS OF

UNDERWRITERS AND

the

In the final consideration

value

of

a

farm depends en¬

a

More than 500 New York State
commercial banks have

organized

separate bank departments or ap¬
pointed special personnel to help

returning

servicemen
of

both

the

utilize

the

banks and

the

government in reestablishing
themselves in civilian life. A sur¬
vey
ers

8,

by the New York State Bank¬
Association, made public Aug.

revealed that

700

all of the state's

with no
exceptions, are prepared to make
home, farm, and business loans
commercial

banks,

Readjustment

Serv¬
Act of

1944,- the so-called "G.I.

Bill." In

under the provisions of the

icemen's

8,

a

of

Vice-President

former

the

in

1945

city's

banks

Bankers believe

that

one

charge.?

in

of the

one

results of the centralized office is
a

volume of

greater

experience

which

of. banks

majority

York

State

said

provisions of

G.I. i Bill

so-called

in New

that the admin¬

istration of the loan
the

cumulative
brought to

each veteran.

bear in advising

A

is

will

be

handled in their "shops" toy spe¬

cially
than

assigned
one-third

departments
returned

war

More

personnel.
of

will

these

be

special

staffed by

veterans,

k

THE COMMERCIAL & FINANCIAL CHRONICLE

738

Thursday, August 16, 1945

schedule of prices or fix maximum rates of com¬
missions, allowances, discounts or other charges; further,
that there cannot be read into the statute the power to im¬

pose any

Trading Market in

—We Maintain Active Markets In—

FULLER

member an obligaion which the Congress has
expressly forbiddqn.
In our opinion, the NASD has shown a tendency to run
afoul of these prohibitive provisions.; It has also attempted
to define by rule what Congress alone may define by statute.
With the many instances in which the NASD has done
injury not only to the public but to the securities industry as
well, our readers who have followed our editorial policy are
already fully acquainted and these need no present summary.
We level against the NASD the indictment that it makes
cowards of men.
So many of the communications that we
have received from member firms have evidenced this by

pose upon a

CHICAGO SO. SHORE & SO. BEND RR. Com.
DEEP ROCK OIL CORP. Common

MFG. CO.

INTERSTATE BAKERIES CORP. Pfd.

H. M.

C. L. Schmidt & Co.
Established

•

1922

Byllesby and Company
;'v Incorporated

v

135
120 South La Salle Street

CHICAGO
Tel. Randolph 6960

A

Pacific Coast

State 6502

MARKET

Trinity 3908

SINCE 1908

i

J

created pursuant to an illegal

giving to the NASD certain exclusive and monopolistic
privileges, amongst them that of having their members
participate in certain financial advantages and dealings to
-the exclusion of non-members; as a result, the NASD is

650 S. Spring St

CG99

action.

fear of reprisals. In
ealls for immediate

Business Conduct Com¬

Fear of District

mittees, their officials, an'd of co-members who might termi¬

bereft

te business,relations, has left many a member firm
of courage
It is fervently

-

.

.

;

..

..

.

hoped that some existing voluntary or¬
ganization will have the vision and good sense to protect
the interests of dealers, and brokers by, petitioning the SEC
to abrogate the recently adopted by-laws of the NASD,
Instantaneous action should be taken, too, to determine now
Whether the National Association of Securities Dealers is a

'

LOS ANGELES 14

:

was

i

\

--

•

statute/ to wit, the Maloney Act, which contravenes the
law of the land because it is special legislation in effect

DISTRIBUTION

:

remedial

of the rules passed by the NASD,

some

(a) That the NASD

■

and

•

V;The following are some of these issues:

UNDERWRITERS

135 La Salle St.

,

and the instant amendments under consideration..

For'.

CHICAGO 3

\

us to withhold their names for
of .itself, this alarming condition

asking

Champion Needed!

ticukrly pertinent to

Wholesale Distributors

SECONDARY

Minneapolis

Pittsburgh

(Continued from page 731)

of Securities Dealers

—

3

Teletype CG273

Philadelphia

New York

Tele. CG 271

Member, National Association

Middle West

Salle Street, Chicago

Telephone State 8711

3

CARTER H.C0RBREY& CO.
,1

So. La

•

not legally constituted and is, therefore, without any rule¬
making power."
^

duly organized, legally constituted body. The well-being of
the public and of the securities field as a whole demands this.
~

In the absence of

prompt militancy on the part of an ex*

we must hope for some cham¬
the 5% pion or champions who will arise to combat and destroy the
spread) is monopolistic in its operations, contravenes the present flourishing octopus of over-regulation which is im¬
anti-monopoly statute in that it tends and will tend to pairing the proficiency and the livelihood of dealers and

H3SS!

isting voluntary organization,

(b) That the interpretation (then relating to

Fred. W.FairmanCo.
Members
Chicago

The

Stock

Exchange

'

Chicago

Board

of

eliminate the small dealer in securities and thus cripple brokers in the securities field.
Non-members of the NASD
competition. We feel that the same may properly be urged are in a particularly favorable position to test the constitu¬
with respect to the new powers of the NASD Governors
tionality of the Maloney Act because of the manner in which
to submit By-laws which would control profits and com¬
they are discriminated against by their inability to obtain
missions.
•
1
1

;:

Common

Trade

;

of:

Stocks

Midland Utilities Company
Midland Realization

Company

-

''

OFFEE

J;,;:

V

(c) The NASD is exercising legislative functions which

Participation in Northern Indiana Pub¬
lic Service Company at a price earn¬

ratio

ings

Values

CHICAGO

(d) The NASD is modifying trade custom and usage

Distribution.

and

without the

SALLE ST.

SOUTII LA

208

Congress never intended to delegate and which the
Congress in fact was powerless to delegate.

to 6.82 times.

7.6

of from

for M-3, a discussion of

Write

4, ILLINOIS

»

•Burton-Dixie Corp., Com.
Steel

&

Globe

Steel Tubes

*Oak

"Prospectus Available

'

Request.

1916

Tel. Franklin 8622

Indianapolis, Ind.

which have been the

legislative power and governmental function
private association and place a burden upon and con¬
stitute an impairment of interstate commerce.
*
a

unfortunate.

was

However,

we

would not.be sur¬

prised to see all these issues revived in some future disci¬
plinary proceeding held before a business conduct committee
of the NASD. We predict that the last of these has not been
heard

by

Jean Paul Simon,

lation of

Long-Bell Lumber
Company
/>

Second Edition

:

a

appeared in the "Chronicle" of April
notice of resumption of
ment's foreign debts:
the following

member, in the conduct of his business,

We

now

quote from a brief filed by the

CHICAGO 4
231 So. La Salle St.

Dearborn 1501

France

resume

in

Switzerland at

rail¬

rate

of

exchange on Paris) may

French

a

payable
sterling,

Utilities

The Chicago Corp.
,

Circular

on

Request

HICKS 6- PRICE

rule, written in the most general language,

partment loan

payable in
sterling,
the

on

Principal Stock Exchanges
Chicago Board of Trade

231

SO. LA SALLE ST., CHICAGO 4

Randolph 5686—CG 972
New

York

Office

-

1

Wall




The brief then goes on

to point out that under the terms

Maloney Act the rules of an association formed there¬
under are designed, among other things, to protect the mech¬
of the

St.

anise of a free and open

market and

are not designed to im¬

Eng¬
of

series

lish

French
of

Rentes

well-established

Members

in
on

:he Seine De¬

4i/2%
of

the

Rentes
1932.

Jean Paul Simon

France

to

of interest arrears,

furnish

sufficient

provided they
evidence

to»

as

V

ownership.
French Ministry
of
will take individual

the date of their
The
nances

Fi¬
ac¬

concerning the resumption
of service on the above-mentioned

tions

bonds, which are held physically
in countries other than France or
Switzerland.

,

//;;/'

"

Moid!, Sulzberger
PHILADELPHIA, PA. —Henry

resume

issued in

apply in Switzerland for payment

I Co. in

II

loans

the cable

and

1917-18

have the force of law must be

Consolidated Gas

bonds

road

y

principle that commands which
phrased in language so clearcut that the person of ordinary intelligence can know what
is expected of him. Here the criteria by which actions are
to be assessed are 'high standards of commercial honor' and
'just and equitable principles of trade.' But 'commercial
honor' is a vagrant concept, too uncertain in its inclusion and
exclusion, to impart substance to the term 'high standards';
and 'just and equitable' does no more than set down a lofty
and unspecified aspiration for the principles which must
guide the trade of the members."^
"It is

(pay¬

able

4%
'•\

Railways

Alsace

service on the

Department of

specifically with this rule:

Lorraine

resumption of

and

Teletype CG 257

5

Foreign Bonds"
5, 1945, has sent to the Editor
service on the French Govern¬

service on loans issued in Great Britain—^
Arrangements'*
(payable in Swiss francs or Dutch
have
been
made for the guilders or French francs) of the

to

is
capable of more than one interpretation; and, if it is to be
applied by a private body for purposes of discipline, the
limits of its meaning must be fixed by the law of the
"For that

Foreign Oebts

shall

observe high standards of commercial honor and just
equitable principles of trade."
*
/

Justice which deals

COMSTOCK & CO.

related
Editor;

I

disciplinary -in their nature, before the
Conduct Committees usually invoke the vio¬

general rule which reads as follows:

"The
y

•Four Page Brochure

the views and

whose article "Status of France's

any means.

NASD Business

NOW

♦

Franoe ResumesInterest on

Proceedings,
AVAILABLE

r

(The "Chronicle" invites comments on

'

,

This

Rockford, 111.

product of NASD activities, be imme¬

t

These issues, partly raised before the Commission, on. Commercial and Financial Chronicle, 25 Park Place, New
5% spread NASD interpretation, were completely side¬ York
8, N. Y. Naturally, the identity of the correspondent
stepped by the Commission in its "Order of Hearing," the
will not be revealed if a request to that effect is made.)
Commission even failing to state whether it had jurisdiction
of them.

Teletype CG 405
-

diately erased,

deprive the securities dealers opinions contained in the above article or on any
property rights without due process of law.
phases of the subject.t Letters should be addressed to

Exchanges

St., Chicago 3

our

public state of mind it becomes increasingly

With that

<

of

based upon a war emergency.

were

the

Chicago Board of Trade

10 So. La Salle

doubt be made to relax all restrictions

no

by

:

Paul H.Davis &Uo.
Established

-

«

continuous and concerted

come,

exercise of

of

Co., Com.

Members Principal Stock

to do.

has

constitutional because they

Co., Com.

on

so

efforts will

freedoms which

(f) The By-laws of the NASD or some of them are un¬

Com.'

Mfg. Co., Com.

•Wells-Gardner &

Now that the peace

important that non-emergent restrictions and diminution of
our freedoms and our American way of life, such as those

Wire, Com.

•Gibson Refrigerator Co.,

legal right

(e) Some of the NASD By-laws constitute an illegal
v.

Central

discounts from member firms.

the

service

on

Switzerland—Ac¬

to
a
decision of the
Ministry of Finances the
Provisional Government
resumed the service of its

cording
French

R. Hallowell

and Charles H. Sulz¬

berger, member of the New York:
Stock Exchange, will form Hallo-

French

well, Sulzberger & Co. with offices?
at 111 South Broad Street, effec¬

has

tive

foreign debt in
Bondholders

of

gulden loan

3%%
able

Switzerland.

in Dutch

francs

francs)

or

U.

c

French

the

of 1939

(pay¬

guilders or Swiss

S. dollars or

French

of the Morocco Railways

was

September 1st. Mr. Sulzberger
formerly a partner in Pen-

ington, Colket & Co. Mr. Hallo-;
well was assistant,manager of the.
investment

Philadelphia
Dillon

& Co.

department of
the
office of Eastman,

Volume 162

We have

THE COMMERCIAL

Number 4412

prepared

memorandum

a

on

& FINANCIAL CHRONICLE

>

,

We have

MIDLAND REALIZATION

available

Bausch and Lomb

STREET

Telephone: Dearborn 9600

135 South La Salle Street

Mastic-Asphalt Co. Common
New Jefferson Hotel Co. 4-6%

CG 1200

Teletype:

.

KITCHEN & CO.

Hydraulic Press Mfg. Co. Common

:

INCORPORATED

135 SOUTH LA SALLE

Optical Co. Common

Consolidated Gas XJtil. Corp. Common

•

DOYLE.O'CONNOR & CO.
.

BONDS

Anheuser Busch Inc. Capital

,

.

TRACTION

Lines Co. Common

American Service Co. $3.00 Part. Pfd.

request

upon

CHICAGO

continuing interest in the following:

a

American Barge

MIDLAND UTILITIES COMMON
Copies

739

(ST.

Chicago 3, III.

Bonds

Tel. STAte 4950

Tele. CG 573

LOUIS)

Textron Inc. Common and Warrants

Trailmobile Co. Common

Bull Stampede-Accent on Inflation

Western Light &

/

(Continued from page 731)

WE

Telephone Co. Common

dividends,

1945

pect of the tax situation, may well
be eliminated or much changed

during the second half of
the prospect that busi¬
would have to go through a
was

ness

at

period of reduced earnings re¬
sulting from price control and
Government
regulations. There
-was
never
any
doubt that this

a

would, of course, have the effect
making dividends more valu¬
able to the recipient and thereby
increase
the
market
value; of
from

stocks

the

■

of Government
But now with
the outlook for early termination
of wartime activity, there will be

Still

another, and perhaps most

important,
with

incentive for the Govern¬
ment to speed the whole process
of
reconversion
regardless
of
every

raised

the

by

stock

of

level

connection

in

factor

the

prices

of early

prospect

termination of the war is the dis¬

ideological considerations,
r
In
the
memorandum
"B ear

tinction

Market, Reaction or Shakeout?"—
July 6, 1945—it was stated "Gov¬

from the

trade

ed

the

set

theme

.

of

Govern¬

activity, but in
view of the (probably minor) de¬
flation that the resulting policies
would effect, it is wholly likely
that a rapid shift of emphasis
back
to
an
inflationary1, theme
would take place before many
months had passed."
Then the

costs-of reconversion

profits
on war goods.
But now the ter¬
mination
of
the Japanese
war
charged? against

this

reason

sent

high taxes would probably

be

until

seen

a

year

Now there is

now.

a

3% basis would repre¬

•

In other

so

or
a

on a

words, substitu¬
tion
of peacetime
for wartime
conditions places before the mar¬
ket the bullish potential of a 60
point advance from current levels
against a bearish potential of 10
to 15 points. I

greatly increased probability
of
early tax relief.
Were the
Japanese war to continue over the
end of the year, important relief
not

market

Dow-Jones Industrial level

a

of 225.

for height¬

ened confidence in the outlook is

from

adjustment

price

On the basis of present

3% basis.

the

from

the

with

that would place the

Tax Relief

Still another

and sub¬

potential adjustment would
into insignificance in con¬

fade

trast

Investment Policy

good

probability that new tax legisla¬

This combination of factors, all

few

springing out of the sudden pros-

will

tion

within

come

months.

,

a

the

further, double taxation of

Still

of

nect

'

■ '

GOOD QUALITY

verv

war

early termination

of

with Japan, seems fully

Current

1945 Price

Price

Allis

v

duPont

St.

C.

.84

___

United

>

...

the

addition

and

Ray A.

s

Earnings
,$4.77

.

e. c

in

Newkirk & Co.

Opens
in New York City
'Newkirk

in

gage

&

A.

Paul

Meinert

.1922

Common

Nor¬

>.

&

Franklin

! Co.

til

Aug.

this

in

served in

ious

i

Common

J

Preferred, Class "A" & Common

var¬

the

last

Mohawk Liqueur Corp.
'

Paul A. Meinert

his

City, members of the New

York

Stock and Curb Exchanges,

depart¬
well
known in the city of Toledo and
has a great many, contacts in the

far

so

stock

financial sentiment and

as

prices

are

the

concerned,

whole period of reconversion may
be hurdled suggests that investors

ahead with the investment of

go

idle funds.

-

*

,

_

In

the

there

opinion

never

writer,

the

of

has been any question

of the

services, have
Mr.

Middle

Meinert

West.

member

of

Toledo.'

position

attitudes

producing
upon
a

seems

the part of the

invested

fully

warranted at this

time.

'

5.25

6.60

1.60

4.61

among

4.25

chase at the present time:

74%

95%- 78
P23

3.00

v

.

5.00

-106

The following stocks are judged

6.25

those

attractive

Mr.

Smith 'entered
business

ment

became

in

Club

Fruit

firm of Hoehler &

the

Cummings,

1917

and

first

regular

served

world

war.

2.00'

4.07

106%- 89%

5.04

for

pur¬

throughout

firms, includ¬
ing W;' K. Terry, & Co. and Vandersall

&

Co.

of

Toledo; also, in

"Westheimer & Co. of

Cincinnati, and Paine, Webber &
Co.

On

the

Co.

&

dissolution

in'1927

his

of

he

firm under the

own

Van-

Mr.

the

name

of

at

Wall

14

Robinson

firm

for

has

some

i

been

time

as

of 'the New York office
Mr,

Street.

Schlem-j

has been manager of the in¬

Mr.

For

the

Smith

has

f

past
-

three

been

en¬
re-

department in the San

Francisco

.

office

Street.,;

at

'■

■-

600

Market

. !■

Dividend

Range

Rate

SECURITIES

OF

1944

Earnings 1

Le Roi Co.

James

•

Manufacturing Co.

0.80

1.00

0.25

0.65

16%- 9

Nil

0.14

29%

33%-15

1.00

2.57

25%

26

-18 %

1.00

1.60

Compo Shoe Machinery Corp.

Shaler Corp.

21%

24%-14%

0.40

1.72

Lake

23%

26

Hamilton Mfg. Co;

Foundry-

17

".,15%

Mfg.

15%

Publishing
i
——_

_—

-

13%

America——
Wayne.. Knitting Mills.
—of

'

31%

'

.

-10%

0.83

35

-18

Company

be

National

Paper Co.

suitable

Tool Co.

Northern Paper Mills Co.

.

Superior District Power Co.

0.51

1.00

13%-10%

Nekoosa-Edwards
Mac why te

of personnel and
deserve care in

Standard Silica Co.

Koehring Co.

1.02

0.20

-21

Announcements '

CONTINUOUS INTEREST IN:

2714-21

.2.14

glad

.

suggest
for such

to

appropriate^ forms
advertisements,

Consultation invited

Albert Frank
•

f

office location changes
preparation. We will

-

•;

-

;f

Guenther Law

Incorporated

;

Advertising in all its branches
131 Cedar Street

New York 6, N. Y.

Telephone COrtlandt 7' 5060

1944.
a

1st.

ber

formed

1933.

26%

not

partnership in
Schwabacher
&
Co., members of the New York
Exchange, effective Septem¬

Stock

years

&

is

Edward H. Robinson and Harold
P. Schlemmer will be admitted to;

until

Machine

tThis

H. P. Scblemner Is is

vestment

American

in

July 26..

Edward Robinson and

mer

$2.93

*Paid

previously reported in

was

the "Chronicle" of

manager

$2.00

Corp.

firm

with

dersall

31%-21

Radio

con¬

•

various investment

30

Co.

wide

\

that

gaged in war work and how

>

THE

1945 Price

Price

Pepsi Cola

'•

■

Mr. Smith's association with the

«■

SHARES

Recent

Field

he has

V

2.86

3.00
4.00

93%-

104 %

—

Co.

investment business

one

army

Since

the

;

time, he has been connected with

Cable—

Mengel

he

of the pioneer firms in the mu¬
nicipal* bond field.
He enlisted

in

to

which field

in

invest¬

when

1910

in the United States

turns

tacts.

traveling buyer for the

a

Chain &

Marshall

a

of

'

„

Ajnerican

Elliot

Phone State, 0101

an

*

78%

46%- 37

91%

Current

Curtis

Chicago 4, Illinois

;

Teletype CG 361

1.76

2.85*

231 South La Salfe Street

Ray •A. Smith & Co., continuing

\

'..

taken

Bond

•

recent years,

-

has

He

the

of conversion that will necessitate

actions

■

active part in Red Cross and Com¬

the

confidence

•

request

on

ADAMS & CO.

is very

munity Chest campaigns and is

thoroughly bullish aspect of
long range outlook for the
market, and now that the bearish
potentialities
are
likely to be
rapidly dissipated by the exigen¬
cies of a highly compressed period
the

4.07

45%
Carbon—

PRICED

Budd

♦Circular

been confined to the sales

ment.

Common

.

18

York

the market for¬
ward
an
appreciable
distance,
perhaps over an extended period.
Furthermore, the possibility that,

*American Service Co.

capaci¬
During

ties.

carry

Interstate Aircraft &

•

Engineering Corp.

the

years

to

Preferred

'

limited partnership in Edward A,
Viner & Co., 11 Wall Street, New

likely

&

* Howell Elec. IVSotors

;

of

1

year.

While

Kate Viner will be admitted to

Preferred

County Coal Corp.

Common

employ of that
firm,
he

EL A. Viner to Admit

&

whom

had / been
connected un¬

erly manager of Newkirk & Co.,
Inc., from 1935 to Dec. 1942.

...

1234-5

York

f ^National Terminals Corp.

of

he

Newkirk, Sr,rsecreMr. Newkirk Jr. was form¬

Sept. 1st.

New

to

ACTIVE TRADING MARKETS

-

with

>

firm

with

and Louis H:

of

CG

-

wire

Sraith to their staff.

i

r

u

ton

business

New York City.
Officers will be
Louis H. Newkirk, Jr., president

as

8800

Direct

the"

Collin,"

from offices at 123 William Street,

tary.

of

business'

the

Co., Inc., will en¬

investment

an

;;

Field Bids., Chicago 3
Randolph

Mr. Meinert
entered

ties

90%-

118%

Penney___^_-—
Carbide &

office for 14 years.

cago

44%- 37"%
::a

93%

"B"_

Joseph Lead

Union

office

Lee - was
formerly
with
Shearson, Hammill & Co.'s Chi¬

2.25

172%-155

43%

——

Harvester

Liggett & Myers Tob.
J.

their

Mr.

Government,

1944

$1.60"

38 %

69%.- 47%

163

—

Electric

International

with

in the Board of Trade Building.

HICKEY'.& CO.

- ~

TOLEDO, OHIO — Goshia &
Co., 517 Ohio Building, announce

"

——:

peneral

63%

—

_

Rate

49%-

46 %

Chalmers

Caterpillar Tractor

Dividend

Range

I

associated

now

and

STOCKSt

Recent

CHICAGO, ILL.—Strauss Bros,
announce that Joseph M. Lee is
>

of peace

advent

the

with

dividends

•

170 on the Dow-

Telephone Pfd.

Michigan Chemical Co.

Meinert and Smith! ■

With Siraass in Chicago. Join Oosfsia § Go.

a

But

r

probably means early adoption of
governmental attitudes that will
tend to be inflationary, without
any interim deflationary phase, f,

•

was

.

we were still at war,
that therefore (theoretically) the

.

3%

a

major
upward' rise,
would be a yield adjustment: of
something under one-half point.
Thus, an adjustment to something
moderately under 4^2%
would
suggest a decline from the high of
the order of 15 to 20 points."
during

prospect was that the process of
reconversion would get a good

V

expect¬

on

sequently declined 10 points. The
July 6th memo stated "About all
one would expect ih .a period
of
temporary declining confidence,

jstart while

be

4% basis

alent of around

.

could

sell

to

Jones Industrial Average

*

and

■>'

Southwest Ice & Dairy Com.

peacetime basis

a

about all one
might
expect.
The
industrial
market, did top off in June at just
about: a 4% basis!'at the. equiv¬

ment thinking and

losses

on

eventually

war, a

sev¬

eral months fear of inflation may
well

that

yield basis, whereas on a wartime
basis, with all the attendant un¬
certainties inevitably tied in with

important part have oscillated be¬

Over the next

market

wartime

a

standpoint of yield basis.
memos
have
repeatedly

stated

tween^fear of inflationandfeat
of deflation.

peacetime

a

the stock market may be

plays an

now

and

These

attitudes toward busi¬

Government

between

market

prices, wages, credit, foreign
and all the. many fields in

which

St. Louis

Joseph Lee Is flaw

I

Yield Basis

apparent.

ness,

General
Founded 1890

Chicago

yield.

icies upon the part

ernmental

INCORPORATED

of

standpoint

Soya

O'Gara Coal Co. 5$ 1955

of

period would be relatively short
lived and would end just as soon
as the results of deflationary pol¬
were

Stifel, Nicolaus & Company

IN.

Mfg. Corp.

Central

date:; This

early

fairly

a

ACTIVE

Galvin

discussed as¬

much

outlook

ARE

complete analysis

Industry or security.
and are

of every material fact

respecting

any

company,

The opinions here expressed reflect the judgment, of the-writer
subject to

ehar^

at this

date

sidered

reliable, but are not guaranteed,




'

Facts have been obtained from
'

,

;

i. j

sources

'

_L*i

con¬

itnAiiLjgj

225

EAST

MASON

PHONES—Daly 5392

ST.

Chicago:

MILWAUKEE
State 0933

(2), WIS.

Teletype MI 488

Boston. Chicago Philadelphia San Piancisco

COMMERCIAL & FINANCIAL CHRONICLE

THE

740

Call Us On

Tifft Uhotheus

Any

Members New York

VWi

U1 l/l/IW

I

•

MICHIGAN

Established 1919

Primary Markets in

Wm.C.Roney&Co.

Building

BUILDING

812 BUHL

DE 206

BOwling Green 9-2211

Corp.

and

general

the Chrysler Corp. supplied the rate at which
$636,000,000 worth of war materials, being greater than any corre¬
received, he said.
sponding period since the war began.
Shipments are continuing at and D. E.
totaled $683,647,228 and the
and its wholly-owned United States
re-<&-—
—'
~~
"
7
owned subsidiaries m Cleveland,
serves,
amounted to $17,326,834
Philadelphia, Pittsburgh and
equivalent to $3.98 per share.
Long Island City. The present fi¬
Cash, including special deposit
nancing is for certain stockhold¬
profit of the corporation
subsidiaries, after taxes and

.

,

—

$30,241,379

in

con¬

nection

with

contracts

for

war

totaled $147,048,155 at
June 30, 1945. United States Cer¬
tificates
of
Indebtedness
and
Treasury Notes aggregated $47,to
$70,773,786,
$58,130,588 and
current assets were $208,118,-

net

*"

with

large

this

we

may

and

and

for

can

we

development, in
Fabricon
has
already

pioneered a number of radical
improvements, is the specification
treatment
of
fabrics, sheetings
and paper with phenol resin var¬
nishes.
This use of phenol im¬

vehicles

truck

produc¬

peacetime

"A more recent

be permitted to build
which

we

manufacture

materials.
items

liberty

Prior to the war

tion.

which

obtain

These

which

I

are

at

Although

only 5% away from pre¬

are

normal facilities for manu¬

war

civilian

facturing
small

vehicles

that

may

take

percentage

Skinner

there

that

said

while

about

7,500 em¬
ployees at the Oldsmobile plant,
now

were

the schedule called for

more

than

'^7:;>';■ pregnated

■

<s\..v.:.;'::''"*

and

now

Rouge,
square

Mich.,

totaling

industrial

is

devel¬
An¬

company's

the

Division

which

produces

printed

attractive

I

material

items

hosiery

lingerie,

J

suited

chandising

«$C

of

the

F.

L.

Co.

Jacobs

16 to vote on
the proposed increase in author¬
ized capital stock has been ad¬
journed until 10 a.m. Aug. 23, in

Janes M. BufferWish
(Special to

677, 10 Penobscot Building,
Rex C. Jacobs, President
of the Company, explained that
"In view of the widespread tend¬
ency,
including possibly among
some
of our stockholders, to re¬
gard today as a
'holiday' the
management deemed it proper to
adjourn the meeting for a week."
Detroit.

Exchange

Buhl Bldg., Detroit 26
Tele. DE 507

Conversion to peacetime

duction

of motor

vehicles

pro¬

at

the

Oldsmobile

plant
at
Lansing,
Mich., has progressed to 95% of
pre-war

INDUSTRIAL

a

facilities, S. E. Skinner,
vice-president of the General

2nd Preferred

CORP.

Common

Common

Stock

Report Furnished

Member

Detroit Stock

on

:

Request

Exchange

:

WHITE, NOBLE & CO.

DETROIT 26, MICH.

Members Detroit Stock Exchange

.

Teletype DE

Battle Creek

Bay City

GRAND RAPIDS 2,

75

Lansing
Muskegon




Company showed net profit
$551,254, or $2.59 per share on
the Class A stock and $1."53 on the

Phone 94336
Detroit

MICH.

Tele.

share

$2.34
Class A and $1.41 on

on

Class B for the

In the past

Kidder & Co..

A. M.

business in Detroit.

:'7:

v

*

Eng.

of

Hundreds

engineers

Net
1945

for

upon 308,609
1945 and 313,-

the first half of

$10,546,280 against $10.-

Ridge.
As

of

many

and con-,
for the Army,

The

designed

•W:<

a

as

day

7,200
were

them. being

desinations*.

their,

Corpora¬

of
sent out,
flown to

prints

:

GR 184

Office, Buhl Bldg.

Engineering

Corporation began the job in De¬
cember of 1942.
At peak produc¬
tion, it had as many as 27.000 men
and women
one

working

on

the job at

engineering concern, which
New York

Boston, is one of the largest
the country,
It has handled

in

big

jobs

in rwar

and

of Maj.
Gen.
Leslie R. Groves: "Set yourself
a schedule which can be met only
the

by a miracle." In a letter of com¬
mendation the War Department,

said that the

develop¬ firm had performed it on a "time
ment part of the job was handled. schedule only slightly short of im¬
by

a

emunepring

large,

and

carefully

selected

stated

Lacey

extensive

no

company
reconver¬
.

in

government

con¬

decline

in

the

earnings of
Corp.' The con¬

Aircraft
income

sales

operating

the

and

first

six

account

shows

revenues

months

of

1945

for
of

$331,900,931 compared with $419,925,815; for the corresponding pe¬
riod last year, Net income for the
first half of this year was $6,957,-

950 against $8,450,113 for the pe¬
riod ended June 30, 1944.
On a

share
preferred

basis, earnings

on the
against
$32.64, and on the common $2.38
against $2.94, respectively. • Fig¬
ures for
1945 are subject to adjustment for war contract rene¬
gotiation.
"
'
:
per

During this
set

pany

for

brings

the

total

1

com¬

$1,673,745

reconversion

$34,149,154.
The

period, the

aside

reserve

'

$26.88

were

as

to'

reserve

•:

'

- -

balance

a:

which

sheet

as

of

June

30, 1945, shows net working capin
tal of $96,464,583.
Total current
assets

were

cash

of

$188,722,128, including
$49,142,839 and U.
S.
Treasury tax notes of $60,884,500.
Chairman

stated

Rentschler

recently

that Pratt & Whitney Di¬
and its licensees produced
than

more

50%

of

all

aircraft

engines used by our Air Force, in
addition
to large quantities for
our Allies.
:
•
v/
❖

Putnam & Co of Hartford and
Chas. W. Scranton & Co. of New
Haven have purchased from the
Gas

Improvement

their

pany

shares

of

Com^

holdings
of
21,380
Bridgeport Gas

the

Light Company which is being
the

share.;

■;

This

with

re-

public at 25% per

sale

the

in

accordance

ruling

Securities
mission

is

in

and

made by the
Exchange Com¬

1941

which ordered
United Gas Imnrovement Com¬
pany

to divest itself of its hold-

ings in this Connecticut utility.

>

instructions

referring to the job,

t'me.

The

will have

and

in
planning and construction of
a city with a population of 75,000
peace, but this one, Pres. Branch
said, was of such transcendent im-,
was
the largest engineering and
construction job ever awarded to
portance that all workers had to
be placed on schedules-based on
a single firm.
>
Webster

J.

M.

problem is serious, the

offered to

has executive offices in

many

&

President

United
many

drawings

contract, which called for

Stone

added

was

that while the present manpower

vision

sales

were

per

.

Ridge, Tenn., -John R. Lotz,

.

the same
income totaled

of engineers, designers and
worked in specially
guarded offices in Boston,: Ber¬
keley, Calif., -Chicago and Oak

Chairman of the board of Stone &

The

$105,944

group

turned
out
12,000,000
feet of blueprints and
whiteprints in drawing up plans
and specifications for the larger
of the two atomic bomb plants in

which

$532,282, or

buyers who

year,

Engineering

shares in

pre¬

account to $627,565.

f

Co.

and

draftsmen, working overtime
days a week for more than

Webster1

•;i..

Carpet

609 in 1944.

seven

Oak

based

are

common

®a Mm Bomb Plant
:

*

.

Sanford

-

$516,638 with per share earnings
on the
preferred equal to $19.57
and on the common $1.39.
These

figures

Stone S Webster

corresponding pe¬

riod in 1944.

:

1051 Penobscot Building

:

1945, Bon

Ami

period in 1944, net

the

Moreland & Co.

-

months of this year. For

he conducted his own investment

revealed.

SIMPLEX PAPER

Preferred

*

*

first half of

earnings of $20.16 a share on the
6% preferred stock and $1.47 on
the
common
for
the
first six

with Wm. C. Roney &
C. O'Donnell & Co., and

Co., R.

structed that plant

"

1st

Zacher.
*

com¬

to earned surplus, bringing that

United

to replace the late L. Ed¬

showed net income of

formerly

spectively.

tial

pany,

Bigelow

Smith, Hague & Co., Penobscot
Building, members of the Detroit
Stock Exchange.
Mr.. Butler was

tion,

BR0WNH0IST
i

by

Hartford-Connecticut Trust Com¬

M.

MICH.—James

square

I

<

mund

♦

DETROIT,

Butler has become associated with

a

TRADING
MARKETS

represented

W.

For the

which

Earnings

$1.56 and $2.05, re¬

were

Cutbacks

Class B, against $503,908, or

|

share

year.

of

end¬

overs

Randall, President of
the Travelers Insurance Company,
has been elected a Trustee of the
Jesse

Chronicle)

The Financial

ceding fiscal

solidated

per

Smith, Hague 3 Oo.

1945,

30,

year

tracts coupled with plant changehave resulted in a substan¬

the

portfolio

Room

& Dolphyn

Cadillac 5752

/<•;/*

scheduled for Aug.

Mercier, McDowell
Members Detroit Stock

mer¬

display.

#

Reports furnished on request

in

equities,
33 %
by
preferred
stocks, ^nd 8% in bonds.

was

earnings

net

with $204,939 for the

pares

market

securities

Formed in Detroit

other

and
modern

to

The special stockholders' meet¬

ing

the

showed

June

approxi¬

the

larxer & Co. New Firm

for wrapping candy bars, shirts,

National Stamping Co.

of

value

of

59%

ed

sion difficulties.

of

iline
an

$190,984 in ex¬

or

As of June 30, 1945?

home

and

Another fairly recent

feet in addition to wholly

$799,756,

of the stated value.

cess

papers

other

opment

260,000

772 while the actual market value

mately

uses.

operates two plants in River

$52,373 compared with
$6,996 a year ago. Investments, at
lower of cost or market, were car¬
ried on the balance sheet at $608,-

10,000.

laminating

offering of shares of this company
which was organized in 1920 and

$155,944 for the fiscal

was

ended

Peck, Stow and Wilcox Com¬

;

pany

1945 were

several months to attain."

Mr.

period

1945,

spec¬

not

am

mention.

to

the

120,500
for
July 1, 1944.

Management

Investment

come

some

and fabrics as
DETROIT, MICH. — Marxer &
materials
to
be Cp. has been formed with offices
Baker Simonds & Co. has ar¬ moulded under low pressure, is in the Penobscot
Building to en-,
rayed for the purchase of ap¬ relatively new in the plastic field. gage in an investment business;
proximately 29,000 shares of Fab- Its wartime uses for helmet liners, Partners - are George C. Marxer
ricon Products, Inc., formerly the aircraft
Darts,
shell and radio and
Marion
S.
Marxer.
Mr.
Detroit Wax Paper Co. Registra- parts will be converted into maMarxer was manager of the un¬
tien of the shares was filed with terials for furniture, housing ma- listed
department for Cray, Mcthe SEC August 11.
terials, automobiles, boats, office Fawn & Co. with which he had
machinery,
luggage been associated since 1931.
This
will be the first public equipment,
:
materials." ,;

v-

\

The income account of the Con¬

showed net investment in¬
of $31,487 against $25,479 a
year ago.
Net investment income
per
share was equal to 200 in
1945 based upon 156,211 shares,
and 160 in 1944 based upon 162,110
shares.
Security profits in

ified

materials
which
should be a large field for the

production,
the
plants are being prepared for
the resumption of automobile
production, to take care of our
allotments of whatever civilian
passenger

printed

other food

company's

June, 1944.

Corp. for the year ended June 30,

sulating

President, states:

England Telephone Com¬
pany for the six months ended June 30, 1945 was $15,764,000 com¬
pared with $14,842,088 for the first half Of 1944.
interest charges
were covered 3.82 times and 3.38 times respectively, while earnings
per share were $3.08 against $2.97
As of June 30, there were 492,156
telephones in service.
This represents an increase of 6,016 over

necticut

to

gill

Southern New

present,"

war

in fibreboard automo¬
bile foundation panels and in¬

goods

war

1941.

tinuing

built up

766,.;-;..7;-'rv{
"Simultaneous

head¬

Oldsmobile

the

at

"For the immediate

considerable sales volume was

a

were

K. T. Keller,

in

leading produc¬

a

candy firms.

amounted

Inventories

are

quarters,
emphasized
that
the
post-war peak
output will be
450,000 units against 272,000 in

bread wrappers
packaging ma¬
terials for national bakeries and
of

er

and

Brevities
Gross Revenue of the

said Mr. Skinner, "we are con¬

Fabricon is

000,000. Advances under war con¬
tracts

viewed

ers' accounts.

materials,

of

ager

materials

Mr. Skinner
Ralston, general man¬
the organization, inter¬

•

six months of 1945

net

Exchange

man¬

ager

During the first six months of 1945

Danbury

Waterbury

Members N. Y. Stock

of the Oldsmobile division,
announced Aug. 15.
The volume
of production is dependent upon

liehifait Brevities

of

New London

System Teletype: IIF 365

Bell

Cherry 6700

Motors

"

New Haven

New York:

L

Phone

Teletype
DE 167

accounts

CHAS. W. SCRANTON & CO.

Hartford 7-3191

•

DETROIT 26, MICH.

Teletype

Sales for the first

request

on

Members New York Stock Exchange

DETROIT 26, MICH.

high rate.

Market and memoranda available

Connecticut Securities

Michigan Markets

a

CO.

Hartford and

r

Telephone
Randolph 5625

INSURANCE

Exchange

UNLISTEDS

LIFE

■

Members New York Curb

Associate

•

639 Penobscot

AETNA

and Boston Stock'

Exchanges

.v

Members Detroit Stock Exctwnge

Thursday,-August 16, 1945

\

possible."

Retires from
Charles

W.

partnership in
&

Watts,

York

Partnership

Snow .retired

115

Blanchard,
Broadway,

from

Snow
New

City, members of the New

York Stock

Exchange,

on

Aug. 14,

UK

jHRS

Volume 162

TRADING MARKETS:

■

■•'■,;•

y;.''; 44

4; v

/4^V';--

Commerce Trust Co.

Long-Bell Lumber Co.

ATTRACTIVE MERCHANDISE

:,y

Pickering Lurrtber Corp.

Western Lt. & Tel. Co.

Spinning $5.00 Preferred and Common
Chicago, Wilmington & Franklin Coal
Chicago & Southern Air Lines
4

1016 Baltimore Avenue,

Collins Radio
Kansas

Trading Department

Department
Teletype — KC 385

Bell Teletype

KC 472-3

—

*

Private

Strauss
New

York

and

Peltason, Tenenbaum Go.
ST. LOUIS 2, M0.

To:

Wire Connections

White & Company

Pledger & Company

St. Louis

Bros.

LaPlant-Choate Manufacturing Preferred and Common
Old Ben Coal Common
Steel Products Engineering
Universal Match

Phone—Harrison 6432

Phone—Harrison 2090

Los Angeles

Chicago

LEA FABRICS

:

Ely & Walker Dry Goods Common
City Public Service Preferred and Common

Kansas City 6, Mo*

Municipal
Bell

©®

iiuiiiHEi

EASTERN CORP.

Berkshire Fine

Central Coal & Coke Corp.

U

741

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4412

Description

LANDRETH

BUILDING

L.D.240

Teletype—SL 486

Request

on

803

,

levities
SINCE 1900

Edison Brothers Show Gains
Edison Brothers Stores, Inc.,

Landreth Building
Bell Teletype

retail distributors of women's shoes,

a

with

compares

months of

St.

Louis

2,

Garfield 0225

Mo.

SL 456

consolidated net profit .of $677,295 for the six months ended
June 30, 1945, equal to $1.54 per share of common stock outstanding
at the close of the period after allowing for preferred dividends.
This
report

SECURITIES

profit of $485,845, or $1.07 per share in the first six
Sales for the seven months ended July 31, 1945,

a

1944.

$30,042,033, an increase of ♦>
requirements,
compared with
18.19% over the comparable 1944
$500,318, or 75£ per share in the
period.
July sales of $4,304,004
corresponding period of 1944.
showed an increase of 24% over

ST. LOUIS

L. D. 123

Direct Private Wire

mment

to

York and Providence

New

Ojficet

were

following is another of the letters received by the
on the
subject of competitive bidding, others
having been published in previous issues beginning with that
of July 12, starting on the fourth page in each instance.
We
shall be glad to accommodate the viewpoints of any indi¬
viduals or firms which have not as yet acted on our invita¬
tion for comments.
Correspondence should be addressed to
Archibald F. Dollar has been
Editor, Commercial and Financial Chronicle, 25 Park Place,
appointed Manager of Finance of
New York 8, N. Y., and in no instance will the identity of
the
RCA International
Division
of
the
f^adio
Corporation
of the source be revealed where a request to that effect is made.

July, 1944.
The

sold
of 414% cumulative
stock,
proceeds
of
recently

company

$5,000,000

preferred

for the re¬

which will be used

of

$3,000,000

of

tirement

old

preferred stock which has been
called for -redemption, and will
also

additional

of

other

and

y

for the construc¬
store units

provide

tion

plans.

America, John
G. MacKenty,

expansion

post-war

'

' i-i

v

The

"Chronicle"

~

Ǥ

...

Walker Dry Goods Co.,
expansion plans
have been noted in this column
Ely &

anno u

various

whose

past

located in the
New York of¬

fices

A

1933,

exception

this service.

participated in
addition

chase, the

lumber

this

to

has also ac¬

company

quired several large tracts

white

gin

oak

red

and

pur¬

of vir¬
timber

it of a source

which

will

of

materials for the future.

raw

assure

American Stove Earnings Advance

six

30 of $544,-

months ended June

495, equal to $1 per share, com¬

pared
share

of

native

was a
Chartered

Archibald F. Dollar

'thpt

before

in

Accountant

country

to

1923.

a

United

the

As

coming

States

in

Public

Accountant,

Certified

he

has

been

associated with the firm of Arthur

Young and Company, Public Ac¬
countants, for the past twenty

devoting much of his time

years,
in that
He

He
is

and

married

is

sons.

and

period to the RCA account.

a

of

member

three

has

New

in

lives

$1,374,000 ver¬
sus $667,590 in the
correspond¬
ing period of last. year.

provision

was

Western Light & Telephone

We
new

are a

Light & Telephone Co.,
whose common stocks is actively
by Missouri dealers, has
registration statement with
the
SEC, covering its proposed
issue of $6,200,000, series "A" first
mortgage bonds due 1975.
Pro¬
ceeds will be used to redeem $5,traded
a

000.000 first mortgage

4s due 1964,

of Kansas Power Co.

Light

&

.

and

Exchanges

Mo.
Tel. Central 0833

&

Markets
Stocks

Insurance

*Stromberg-Carlson Co.

no

*

Mid-Continent Airlines

Aircraft

*Rohr

Corp.

institutional business, so our interest

being brought out with minimum interest rates and

practically no profit, are of very little interest to us. However, for
the benefit of those who are fortunate enough to have this type of
business, I offer the following suggestion to the most important ob¬
jection to competitive bidding, namely, the small profit.
The SEC
was created to protect the investor arid admittedly has done a good
job, but it has failed to recognize that the investment house too, needs
protection,; and I think it about time the NASD does something
toward creating a minimum profit, just as they have toward estab¬
lishing a maximum.
This can be accomplished by making the cor¬
poration who is selling the security pay a fair cost for distribution,
where today, under the present system, they are paying absolutely
nothing except expenses incurred setting up the issue, cost of pros¬
pectus, etc. For example, the bidding syndicate would bid the cor¬
poration, the price at which the bonds would be retailed to the public,
less two points to the corporation. - Under this plan the bidding syndi¬
cate would bfe assured a fair profit, likewise the small dealer in¬

assuring greater distribution; The minimum
profit could be scaled to two points on bonds, three and one-half
points on preferred stocks, and possibly 5% on other stocks.
terest would be revived,

*Ampco Metals Inc.
^Pickering Lumber Corp.
Majestic Radio & Television

Corp.

:■■■■'j4v,:4 '

at the expense of

y.74;444;:
7

*

tA

.

Equipment

Chicago

Information

Statistical

on

Request

WHITE & COMPANY
Louis Stock Exchange

Members St.

Mississippi Valley Trust Bldg.

ST. LOUIS

1, MO.

that under the present system the

In conclusion, it seems to me

large corporations, are the only ones benefiting
the investor and the investment houses.

the

Shore

Milton Powell

Bell System

Teletype—SL 477

in

Calif.

CALIF. —Milton

PASADENA,

C. Powell has formed the Milton
C.

BALTIMORE,

J. H. Brooks & Co. to

Gould

Admit Two Partners
H;

York

Stock

J. Archibald Brooks to
in their firm as of

will

Atherton

Exchange,

partnership

his

Stock
Gould

was

active

as

a

member of

the Baltimore Stock Exchange for

Brooks

Broad1

25
will

He

was

previously

some

years

has

made

his

Wilkes-Barre, Pa. office.

■

SECURITIES

*

head¬

quarters in California.

Metropolitan St. Louis

^

COMPANY
718
•

'

44'

AND

Louis

Central

L. D. 208

ST. LOUIS

the

Locust

Saint

Active Markets in

Mr.
at

INVESTMENT

Inc., of Rochester, N. Y., but for

head¬

Street.

located

be

sole proprietor¬

a

President of Milton C. Powell Co.,

many years.

quarters at the firm's New York

office,

Mr.

He has recently been
serving in the U. S. Navy.

Co.,

ment business.

in the

Building.

Exchange

Powell

ship, with offices in the Security
Building to engage in an invest¬

Mr.

Sept. 1st.

make

invest¬

his

ment business from offices

J. H. Brooks & Co., members of
New

MD. —Theodore

resumed

has

and $1,189,-

Western

./
Exchange

Rochelle

will admit James L, Atherton and

Western

000

small firm with

issues

Members
Stock

Primary

San Francisco

,

in

■'''(• ,:vj
York

Teletype SL 84

Pros and Cons on the merits of competitive bid¬
ding with great interest, particularly the weak and fumbling objec¬
tions, by those not in favor of it, to a former underwriting monopoly
enjoyed by a select few.

Club in that city.

the

Registers

y

Other Principal

Broadway & Locust, St. Louis 1,

I've read your

or

profits taxes

>

Bank

85<fr a
in the first half of 1944.]
$449,270,

with

Income and excess

filed

-

Dollar

y

Co. reported

American Stove

estimated net profit for the

i

^Grangemouth,
'-Scotland, Mr.

period, Ely &
pervised the remodeling of retail

ing

v

efeller Plaza.

stores, over 1,200 such outlets lo¬
cated in 28 different states hav¬
In

D i

sion, 30 Rock¬

of the war
Walker have su¬

the

with

Since

customers.

Interna¬

tional

Mo., for the manufacture of store*
fixtures for the company's retail
merchant

the

of

RCA

used
factory at Verona,

to construct a

Mr.

Dollar will be

a

will be

lumber

This

RFC.

and

year

need

today.

half,
recently purchased 1,000,000 feet
of high-grade lumber from the
Surplus Products Division of the
the

over

Division,

the

■■

New
i

MAXFIELD H. FRIEDMAN

!

Managing
Director of

Ely & Walker Expansion

<yy

G. H. Walker & Co.

'

Street
1,

Mo.

;-

8250

St. L. 499

r

■

MIDDLE WESTERN SECURITIES

Telephone

first and collateral 3%s due 1965.
The present

changed
of

preferred stocks of

companies

both

the

for

would

5%

new

merged

be

preferred

companies,
receive

stock would

Corporate Securities—-Bank Stocks
Exchange Issues

Taussig, Day&Company, Inc.

Stix: Si Co,

ESTABLISHED
investment

securities

new
509

common

—

St. Louis Stock

and

Western Light & Telephone com¬
mon

Municipal Bonds

ex¬

OLIVE

Newhard, Cook & Co.

STREET

UNDERWRITERS

in the ratio of one share

DISTRIBUTORS

and

1924

Member
St. Louis

Stock Exchange

Members

of

new

for five of old.

National
National

Candy

Candv

six months ended
consolidated

$684,369.
share

net

equal

after

Report

Co., for

to

preferred

$1.06

of
per

dividend




York Stock Exchange
St.

Louis

Stock

New York Curb Exchange

Exchange

Chicago Stock

Members

St. Louis Stock

Exchange

Bell

Teletype—SL
New

152

York Correspondent,

(Associate)

Exchange

506

Olive Street

ST. LOUIS 1,

MISSOURI

ST. LOUIS 2, MO.

FOURTH & OLIVE STREETS

the

June 30, had

earnings

New

St. Louis 1,Mo.

L.

D.

St.

Louis

Clark, Dodge & Co., 61 Wall

.

340,

Street

341r 342

Teletype

SL 62

.

,v

THE COMMERCIAL & FINANCIAL CHRONICLE

742

Cotton

Thursday, August 16, 194$

Trading Floor of the Hew York Cotton Exchange

Exchange Mas xf
IHamoiid Jubilee
(Continued from first page)

price paid by the cotton mill. In
those days, after a cotton crop was
harvested, dealers or "cotton fac¬

transported was mentioned.
The
contract simply called for the de¬

tors"

bales

number of
middling,
nothing below low middling," to

ports bought
the baled cotton and immediately
arranged to make shipments of the
commodity to foreign or domestic
ports. The cargoes were hawked
about

until

weeks

and

All

sold.

this

There

in

the

accordingly

was

siderable

variation

in

same

The length of time was al¬
to provide against delays
Against these con¬
tracts, cotton brokers or dealers
could sell on the spot market for
future delivery without risk of
lowed

con¬

short

The cotton

loss from change in

in

through

raw

rapid

in¬

mer¬

,

organization of a <: trading floor
was
attempted, but it failed to
supnly adequate facilities for the
rapidly increasing marketing of
contracts in cotton.
So on July

cotton
when,
communications

1870,
a
number of cotton
got together to form a
trading exchange. They drew up
the following preamble:
20,

brokers

""Whereas, The Cotton Trade of

pointed out by W. Hustace

New

.York
is
increasing
very
rapidly, and with the increasing
facilities for shipping Cotton by
steam to all parts of Europe, this

Jffubbard, author of the standard
the

and

Cotton

Market," the Civil War completely
disrupted the cotton trade, and
When business was resumed, it
speedily found that the

was

methods

would

not

do.

The

trade

*.

old

ruin

having cotton at
were

made much

Atlantic

cable

Cotton

purchase
future

in

the telegraph lines operated
continuously between New York

In
of

;to

for

sale,

the

there

and

sale

is

of

in

done

Cotton

which

for

much

on

telegraphic

wires
all
over
the
world will rapidly increase these

r

transactions, and

-

•

,

it is de-. violating the Constitution and By- can be represented on the floor
present,1 Laws,1 or of fradulent breach of by an attorney on payment of
J
contract, or of any proceeding in-j annual dues;
\
■■■ ;:
pNf-Ji consistent with just and equitable: ; "It is intended to make the Ex¬
principles of trade, or of either; change the center bf information',
of this Associ-p
with regard to the cotton inter¬
to
provide;;; and misconduct, may, on complaint,:
us

.

purposes

shall

maintain

be

rooms':1 for1 a

suitable

-

be summoned before the Commit-:

Membership, when, if de-;
sired, he shall be heard in his
defense, and if the charge
or
between
members, to .= establish
just and equitable principles, uni-t charges against him be, in the
form usages,
rules and regula¬ opinion of the Committee, sub¬
tions, and standards for classifi¬ stantiated, the complaint shall be
-referred to the full Board of Man-;
cation, ahd all transactions Con¬
agers, who may, by a vote. of not
nected with the Cotton Trade, to
less than two-thirds (%) of all
acquire, preserve and disseminate
the members present, suspend or
information connected therewith;
to
decrease, the risks
incident expel him front the Exchange."/ ;
/>•" vvr t;•/;/
■'•/■ "?•?
:K+
thereto, and generally to promote
Organization of the Exchange ;
the interests of the Trade, and in¬
The first meeting of members
crease
the
facilities
and
the
was held July 20-, 1870, on which
amount of Cotton business in the
'Cotton Exchange', in the City of;
New York, to adjust controversies

tee

on

■-

order

to

reduce

these

the business, merchants

trade

in

"cotton

to

risks

"Whereas, It is

began

this increase in the

arrive."

of

^contract,

no

samples

were

and no ship by which it

for

shown,

was to

essential

with

Cotton Trade

New

York, that proper rules
and regulations should be adopted

Under this system no specific lot
of cotton was stipulated in the

?

here

to

"Whereas, We believe that the

and

i

addition

foreign ac¬
count, as well as for Planters and
Country dealers in the South, and

1859

and the South.

US.;V.;i
"The

delivery,

business

when the

laid

sent

the Trade,

by- those of

and such others as will unite with.

*:

In

of all

termined

increase

has grown up a large trade in the

Conditions

was

to

zation

ation

merchants

sea.

worse

continue

"Whereas,

stopped at Halifax each
way, news was immediately tele¬
graphed to New York, and prices
began to change at a rate which
to

must

and

;

.

fast

steamers

threatened

brokers,

place for this sort of dealing. For
a time, they followed the practice
of getting together in the quarters
of., a large cotton merchandising
concern.
In 1868, a sort of formal

.

"Cotton

cotton

however, had no specific meeting-

transportation, the change of
price in one market would be im¬
mediately reflected in all mar¬
kets.
■'V-/
'A
Origin of Future Trading

work

The

contracts.

and

r As

price, so some

(prude system of hedging and off¬
setting trades was afforded.
I
New
York soon became the
trading center of these "to arrive"

chant, of course, assumed the risk
of the market, but his successful
adventures
with
high
profits
would generally compensate for
losses undergone.
But the busi¬
ness
was
risky since the mer¬
chants had no adequate facilities
for
"hedging"
against
price
changes. These price fluctuations
became
particularly serious to
dealers

pre¬

in the voyage.

the

at

market

two

particular

year.

took

prices
in different markets but

tervals of time;

during one of
months of a

arrive

the purchase of the product on the
farm and the final sale to the mill.

not only

stated

a

cotton, "basis

of

scribed

months between

even

of

livery

.Southern

at

systematizing the whole busi¬
and believing that this can

City of New York.

best

who

ness,

be

be

done

under

an

organi-

4

^

occasion

Constitution

a

and

By-

,

"Any member of the Exchange
shall be accused of wilfully

Laws were
a

adopted. Officers and
Board of Managers were elected

August 15, 1870, and the New
York Cotton Exchange established

on

quarters at 142 Pearl Street. Up
to that tim6, trading in cotton had
been done in brokers' offices in

t

and around

Hanover Square.

cotton in

its movement from farm

fluctuation

contract

prime factor in cheapening the cost of handling

risks

and

has rendered

The

to

all

who

an

are

financing of

By maintaining

broad market the New York Cotton

a

may

mill is the reduction of

through hedging.

a

there be many

on

price

sound

Exchange

outstanding service in this respect for 75

applause and congratulations

deserved;

to

years.

this 75th birthday are well

more years

of meritorious service

engaged in the production, merchandizing, and

cotton, and the manufacture of its
many

products.

through to Water Street, within
sight of the East River docks; Thlsj
room
contained a gigantic iron
which

around

stove

INCORPORATED

COTTON

MERCHANTS

members

gathered to trade in cotton and
exchange views regarding current
events.. During the first days of
the Exchange, considerable atten¬

York

of

Board

dissolved:

was

was

directed

to

the

new

prediction that "one day, the City
will actually have one and one-;
half million people."
:
Announcing the formation of
the new exchange the "Chronicle,''
which had carried quotations and
other data for the cotton trade, in
its issue of Sept. 24, 1870 (Vol. 11,
page 395), said:
"After long and patient
sion among the members

discus¬
of the
York tot-

ton
Exchange has been finally
organized
and commenced op¬
erations on Monday last, in their
very handsome and commodious
rooms
at
142 Pearl Street, the
center of the cotton market.

The

members is
of the
leading houses in the trade, and
present

number

132, comprising

Brokers

1st

instant;

have
cordially
co¬
operated in the present organiza¬
tion.
F.

Geo.

their

for

and

to

and

expendi¬

effort

about."

Jas.

Easton;

other brokers

disinterested

time

of

due

Charles "A.

Cornwall

ture

it

credit/is

Much

Wen man,

to

bring

y.
1872, the business of the Ex¬
change demanded larger quarters
and, on May 4, 1872, the mem¬
bers moved to the building at the
head of Hanover Square which
was subsequently known as India
:

■

In

House.

Dimensions

change Room

were

the

of

70

Ex¬

40 feet.

x

The New

York Cotton Exchange
operated in these quarters from
May 4, 1872 to April 29, 1885, a
period of thirteen years.
- ■ '

the Board
a special
projects
for a new building. This Commit¬
tee found it impossible to obtain
title to the property adjoining the
existing site of the Exchange.
Among new sites considered was
one on Battery Place, another on
of

Managers appointed

Committee

to

consider

,

the

northeast

the

of

corner

and New Streets

near

produce

present

Beaver

the site of

Exchange,

and

of

very

many

was

1884. The
cated

building was dedi¬
April 30,
1885 with

new

on

elaborate

fee

is

$200,

held

ceremonies

on

the

trading floor.
This
building
remained
the
home of the Exchange from April
1, 1885 until expanding business
again made it necessary to enlarge
the

facilities.

A

Committee

ap¬

pointed by the Board of Managers
in 1921, undertook to negotiate a
building project and—after meet¬
ing and overcoming many diffi¬
culties caused by the effects of
the World War—finally adopted
plans by Donn Barber, and con¬

tracts

were

down

the

for

the

awarded

existing

erection

on

limestone

the

for tearing
building and
same

edifice

site

of

completed

May 1, 1923, the present home of

with the,pendlllg
annual dues of $25. Every member building
initiation




the

and' .they

SS £r TttresenF,
.1

Cotton

on

still another, which finally
chosen, on the block bounded
Census
figures showing a New by William, Beaver and Pearl
York
City population of more .Streets. The corner-stone of the
than
940,000 and some of the third New York Cotton Exchange
members joined in the prevailing location was laid on February
25,
tion

Cotton'Tfade'the New

Anderson, Clayton a Co.

country. v In

-

view of its establishment the New

On December 6, 1880,

The. first New York Cotton Ex¬
change was housed in a single,
long, narrow room (23x100 feet)
running i; from
Pearl
Street

oA

whole

of ' the

ests

?

Cotton Exchange,
erection of the present
the

Exchange

occupied

kM*A^i«u#j(^Wi(*¥ H We^Ti

,i

*■} j^i t

743

THE COMMERCIAL & FINANCIAL CHRONICLE

resulting from price changes the
merchandising, fabricating
and distributing cotton and cotton
products is substantially reduced.
Through protection of invested
capital,- the cotton futures system
serves to facilitate the large-scale
financing
of
inventory
stocks.
Also, protection of invested capital
encourages investment buying and
carrying of surplus stocks, and

Present Home of Cotton Exchange

cost of

supply

and

demand

forces

are

operates to reduce the spread be¬
by pro¬
by con¬
sumers to the advantage of both.
tween the prices received
ducers and the prices paid
The

■

New

York

change is used by those engaged
every
branch of the cotton
business,
its related industries,
in

and

of

the

by

together
world

from

and

trading

open

are

all

hedging

employ its facilities for

as

means

a

of price in¬

into

price.
The

/

In

addition

to

the

privilege of

buying and selling cottqn at mem¬
futures

contract

system

bers'

rates

of

commission,

as

to

of the world, data

the United States
foreign producing countries.
Thus the most important func¬

cotton crops of
and

as already stated, of the New
York Cotton Exchange is to pro¬

tion,

vide the cotton

and

merchant, spinner

planter with

ations,

a

against

the

term

ON

COTTON
75th

ITS

for

(Continued

the

on page

EXCHANGE

ANNIVERSARY

doors.

joins the rest of the business world in paying tribute to this
institution's long and distinguished record of achievement.
Building, situated at 60 Beaver Street, New York

The Exchange
was

The past 75 years have brought many changes in the
marketing and sale of cotton. But the years have served
simply to emphasize the important role of the Exchange in
serving the cotton industry.

'

erected in 1923.
1

The
New
York
Cotton Ex¬
small
located at 90 Wall Street, change and its world-wide sys¬

temporary
space

quarters

in

at the corner of Water

•

a

in cotton futures
to satisfy
an essential economic demand of
the cotton industry for trading in
contracts callings for future de¬
livery. It is the purpose of such
contracts, as far as possible, to
eliminate market price risks in¬

tem

Street.

of trading

contracts

*

•.

Importance of the Exchange

* The

New

York

Cotton

Ex¬

change is not only the oldest but
the largest cotton exchange in the
world, notwithstanding the ex¬
pansion
of : the Liverpool Ex¬
change because of the increasing
'importance of Egyptian cotton. It
is a market or trading place for
the purpose of buying
cotton on contract for

future de¬

a "spot" or "cash"
it is not as important as

As

livery.
market

Orleans

New

and selling

or

other

in

tem

of raw

handling

the

provides a form of insurance

against loss of invested capital
through inventory losses incurred
by price fluctuations.
Before

large-scale operation of

Southern cotton mills, cotton was

Pur¬

shipped to New York City for fi¬
nancing, storage and sale to New
England mills and European mar¬
kets.
There
were
times
when

chases and sales on the New York

made by
auction or public outcry around
mills
and
foreign
importers
a trading ring, and the prices con¬
wanted
to
anticipate their re¬
sequently established are recog¬
nized
and
accepted
by
world quirements of raw cotton by buy¬
traders as reflecting current val¬ ing aheM, hf ten before the size
and quality of the annual crop
ues of. American cotton.
Cotton

Exchange

are

had

been

other

Exchange Officials

h

established.

.

Qn

.

the

there were
times
producers and merchants

hand,

when

wanted to sell for future delivery
at

During all this time, this Bank has stood close to the
Exchange and its members.- Through "its Head Office at 55
Wall Street, and 65 conveniently located branches through¬
out Greater New York, it has provided a complete banking
service to meet the industry's domestic needs.
'

The futures contract sys¬

cotton.

Southern

distributing centers.

cotton

volved

created

was

«

'

v.-

And to cotton exporters and importers, National City's
World-Wide.Banking System has offered experienced, com¬

petent help in facilitating financial and

trade transactions

commercially important area of the globe. National
City's 40 strategically located branches throughout Central
and South America and the Caribbean—as well as those in

in every

India, the Philippines and England—are
and

women

spective countries.
In

staffed with men

and are thoroughly
and business conditions in their re¬

who speak the language

familiar with customs
-

congratulating the Cotton Exchange on its 75th an¬

niversary and wishing it a long and

successful future, the

takes this opportunity to pledge again
its cooperation and facilities, both at home and abroad, to
the Exchange and its members.
,
National City Bank

.

.

price to be fixed before de¬
livery date. The New York Cot¬
ton Exchange evolved from the
a

demand

where

for

market

central

a

such

contracts

could

be

negotiated at public auction. The
new
method displaced the ;evils
and

inconvenience

door

of

The National Gity Bank

of

trading then in vogue.

door-to-

Memberships

in the New York
Exchange are widely dis¬
throughout all branches
of the cotton industry on a world¬
wide basis. They are held by pro¬
ducers, merchants, shippers, mills,
textile dealers, farmer cooperative
Cotton

First in World-Wide

tributed

organizations, and brokers. Strin¬
gent

ship
Tinney C. Figgatt

Frank J. Knell

Mr.

of

Knell, now Vice-President
New
York Cotton Ex¬

the

headed the organization
1937-1938.
Mr. Figgatt is
Secretary of the Exchange and

change,
during
has

occupied

this

position since

1940.




requirements

-®

65 Branches in

Head Office
55 Wall

Banking

Greater

St.

New

in

for

member¬

the
Exchange require
that any prospective member sat¬
isfy the Exchange that he is a
man

cial

of integrity and sound finan¬

responsibility.

Through
system

the

futures

trading

chandised

on

cotton

a.

contract

is

narrower

than would otherwise be the

By

minimizing

-

inventory

mer¬

Member

of Federal Deposit Insurance Corporation

margin
case.

losses

BSBBB333S53

fluctu¬

which

"hedging". For example, if

IN 1870, the NewThe National Exchange first New York
York Cotton City Bank of opened its
Today,
City,

medium for

price

IBI11I1I?S*TOSTHE '1131;®-:N. Y.

are

regarding the production, supply
and
distribution
of the
annual

insurance

Services of the Exchange

world

a

■

(1

parts

translated

formation,

Exchange

all available in¬
prices current in

with

other markets

principally by merchants and

mills who

surance.

brought

Ex¬

Cotton

the

of

members

supplied

York

a

745)

is

cot-

THE COMMERCIAL & FINANCIAL CHRONICLE

744

situation, is, to say the least, not
very favorable for its success, and
Dalton's

if

"the

rect

earlier

view

is

difficult" without the capital
J

able

(Continued from page 731)

radical

Debts

War

the

to

Countries,"

All ]

of

But, of course, these

recommendations

got no¬

where.

The American public, as
happened after the Revolutionary

War, insisted

upholding Alex¬
ander Hamilton's philosophy that
individual integrity can never be
on

maintained if national integrity is

impaired.
The

"Capital Levy" After World
*

War I

..

the

In

the

burden

large

of

national indebtedness again mani¬
fested itself tnroughout the world.
The

of

indebtedness

gross

the

civilized nations had risen in four
years

from $27 to

lions.

Economists

expressed

nomic

stantly

would

and

had

that

prog¬

It

was

been

con¬

it was not
rich¬

and

growing,

eco¬

future

rehabilitation.

incubus

an

burden

to

this

that

political

detriment

and

ress

statesmen

and

debt

serious

a

$250 bil¬

over

opinion

the

tremendous
be

at all unreasonable that the

and

est

pledge of the sequestered prop¬
erty.
The State would thus be¬
universal

a

mortgagee,

strongest

Aside from the feeble

nations

were

attempts

Germany to make a substantial
levy on individual wealth during
and following the last war, there
were; no large scale experiments
made with the "capital levy."
In
Germany there had been imposed
on several occasions
heavy taxes
on
property for the support of
the army or for war preparations,
but this was in the regular form
of a property tax and made pay¬
able in cash*
Following the war
and during the drastic inflation
period a somewhat similar levywas made, called "Reichnotopfer
(sacrifice for the nation's need).
in

,

And

this, too,

was

made payable

concerned about it, and that radi¬

in instalments.

cal

depreciation progressed so
idly that as the instalment

proposals
for

all

sidered.

to cast it off once
were
seriously con¬

A

and

few

former

the

of

for example Rus¬
resorted to repudia¬
tion.
Several others, notably the
Central
European Powers, suc¬
ceeded in arriving at the same
situation through drastic currency
depreciation. Even France, in the

belligerents,

as

sia, actually

made

sate

the

no

effort to compen¬
obliga¬

her

of

holders

tions for the losses they

through
was

incurred
devaluation. It

currency

indication

an

that

govern¬

like corporations,
occa¬
sionally require financial "reor¬
ganizations" to keep going.
His¬

ments,

tory proves that nations, like in¬

bankrupt.
There are, however, no interna¬
tional bankruptcy courts, so that
dividuals,

each

become

can

nation

must

settle

accounts

with creditors in accordance with
its

ideas

own

of

integrity

justice.

and

■

As

happened
after
previous
periods of heavy war-time debt
accumulation, schemes for effect¬

But the currency
rap¬

pay¬

ments

the part of German citizens from

this

source.

Hugh

Dalton

One of the

Favored It

leading British

pro¬

tagonists of the capital levy after
the last war was Hugh Dalton, re¬
cently appointed to the highly im¬
portant position of Chancellor of
the Exchequer in the new British
Cabinet.

While

lic

finance

of

Economics

in

a

teacher of

the London
and

also

Labor

a

came

to

duty

my

several

years

study this question with
As

care.

ago
con¬

result

a

and indeed that until it is

of

adopted

financial and economic pros¬
pects will remain needlessly dark,

our

cussed

dangerous and difficult."
Later, in 1929, after two par¬
liamentary committees had turned

economists

thumbs down

before

the

seriously

ended,

war

and

considered

was

dis¬

and

by several leading British
of the period.
There
general agreements, how¬
ever/as to the limits of the pro¬
posal.
Sidney Webb, the leader
of the Fabians, would have the

were no

Government make

a

levy for debt

extinguishment only

on

produc¬

tive and industrial wealth.

Pethick
r

ore

Lawrence

F. W.

demanded

a

sweeping sequestration.

wanted

all

material

goods

He
pri¬

vately owned, whether productive
(r

non-productive, contribute pro
towards national debt ' re¬

rata

demption.

The State

would

not

only

on

the capital levy

proposition,, and when its failure
in

was

a

already

way

demon¬

strated in

text

a

Public
of

Germany, Dalton wrote
book, "The Principles of
Finance." t On page 265,

this

work,

redemption

in

of

the

chapter

.public

on

debts,

he

said:

"My

own

opinion

[regarding

the capital levy! still is
of the levy as the best

in favor

policy,

on

merits, for dealing with the debt."
Yet, notwithstanding this view
and his expected nomination to
the exalted position of Chancellor

levy on income producing
property, such as land, factories, of the Exchequer, with its dom¬
ships, railways and securities, but inating influence on fiscal policy,
also on personal chattels, such as neither Dalton nor any other lead¬
furniture jewelry, pleasure cars ing Labor Party candidate made
clothing.

and

he

And

oropcsed

that the taxpayer have the ootion
in cash or in goods. A

of raving

millionaire
Van Dyke
le«s

could
or

opulent

tribute

a

Rembrandt, wh'le

a

could

denizens

rocking choirs
this

Under

coats.

surrender

or

r>lan

con¬

waist¬
it

assumed that t**e Government w'll

be

aHe.to

dfsnose of such

erty for cash
own

or

in return for its

obligations,

made

tained

but

conce-'vable

cates that

v.Pues

equally

prop¬

it

bv

couM

for

all

was

not

an

issue

seems

of

to

the

have

capital
been

levy.

It

smothered

under the nationalization
program
of the party, and very little seems

to

have

spite

been

the

fact

said

that

about
it

was

it,

de¬

one

of

the

leading planks in the Labor
Party's platform a^t.er the last
war.

of

Whether it will be revived,

course,

progress

will

depend

on

the

that the dominant polit¬

ical group

makes in carrying out

the

advo¬

its proposed social

be

main-

reforms.

According to
a
dispatch
to ' the
New
York
"Times," dated June 29, 1945, it
is reported that the French will
•

called

be

to

upon

two

pay

new

and economic

specious arguments
may be offered in support of the
"capital levy" theory.
It aims
primarily to avert a long, con¬
many

tinuous
falls

burden

who

the

amassed

continues

the

dispatch,
"who has been working on these
new
taxes, described them and
their necessity to the Cabinet at a
meeting this morning.
They will
be presented to the Consultative
Assembly within a few days.
"The levy on capital or 'patri¬
mony,' as M. Pleven prefers to de¬
scribe it, will be progressive and
will be payable within four years.
The rate proposed for fortunes in
the
lowest
bracket
is
3%; the
highest rate will be 20% for for¬
tunes
exceeding
300,000,000
trancs (about $6,000,000),
increase in the
birth rate, taxpayers with families
will benefit by ^certain exemp¬
tions.
Moreover, children born
during the next four* years will
an

spur

levy

increment

on

of

wealth

is intended primarily to
penalize illicit or excessive profits
realized during the war years by
black market operations, trading
with
the enemy, and
the like.
The

minimum

Consideration

1940

"M.

den

classes

of

It will be due

;

wealth

between

that

admits

such

the
will

increment

but he believes the

measures

leave few

fected from 100,000 francs, as pro¬
posed by Finance Minister Rene
Pleven, to 200,000 francs. ■ The
measure, whose final form will be
decided by M. Pleven, calls for a
tax of 3 to 20%.
Thus, France,
like Germany after the last war.
is to experiment with the capital

levy.
It

...

is

that the French

reported

government, in order to carry out
this program

which

is

is taking a census of
This

wealth.

individual

include

to

census,

forms of

all

property, is also to form the basis
of the forthcoming levy on.-war¬
time gains, estimated to bring in
Frs. 100-125 billion in four years;
it

will

in

Government

the

assist

tracking down illegal and espe¬
cially, black market transactions;
and it should facilitate the efforts
made by the Government to

now

curb the long-standing evil of tax
evasion of which M. Pleven gave

Budget speech.
It

will

above

proposal,

"instalment"

feature

:

in

that,

there

his

;

.

noted

be

in

examples

striking

some

the

is also

an

and, though

is believed that the
payments are to be made in cash.

not stated, it

The effect of all this on
rency

situation

values,

of

ignored.

assessment

the

tax

ing

prooerty
to be

on

in

collection

of

a^d

"levy," whatever Mr.

the
and

cur¬

a no ears

prefers to call

by

many

or

the

the difficulties

the

Pleven

and

course,

Also

name

nomer,

categories' ing Britain's precarious

economic

nomically

and
as

of others

expense

be eliminated.

In

cases

proposed "levies" are
to be "steeply graduated," in the
income

of

exactions,

it

France,

well

as

mis¬
eco¬

politically,

sition.

contentions, however, are
offset by serious and inescapable
difficulties, both in the carrying
of

out

the

ideal

and

in

the

dis¬

torting economic effects resulting
from its application.
Even as¬
suming that it is entirely feasible
to segregate, evaluate and appor¬

payable in in¬

the

If

sequestered

prop¬

erty is permitted to be held pri¬
vately under a Government lien,
the

periodical cash payments
of
principal would

on

be

account

simply transferring a debt bur¬
den from the State to individuals

more

ideal.

taxation

These

made

when

even

stalments, has all the disadvan¬
tages and none of the advantages
of a simple property tax propo¬

fice"

able

cost

still

would

debt

would

and

The service

bear it.

to

the

of

re¬

be

higher and
burdensome in the long run
(what is more important)

and

without

checks

the

Govern¬

on

ment

extravagance that accom¬
pany a large national debt bur¬
den.

Conclusion

\

A careful analysis of the "capi¬
tal levy" idea leads to the con¬

tion all forms of physical wealth

clusion that in its

by State action, the scheme, un¬
less carefully and most accurately

cation it would not be

administered. Is most inequitable*

would be exceedingly more diffi¬
cult to apoly in practice.
It cer¬

The

mere

is

gauge of ability to pay. This
become almost axiomatic in

no

has

taxation
in

the

theory,

income

is

and

manifest

of. modern

trend

from

away

of

possession of property

a

basis.

taxation

property toward an
The appropriation

physical wealth

by the State
may tax the thrifty and the provi¬
dent, but allows the spendthrift
enjoying large professional in¬
come
to
escape^
It ; handicaps
men employing their property in
productive enterprise, and does
not directly fall upon the profes¬

sional

salaried

and

A

classes.

conscription of "earned incomes"
might go hand in hand with a
property assessment, but it is a
difficult

taxation

problem

to

these two schemes operate

concomitantly.

•

from

Income

services and income from invest¬
ments—these

contituting
and H {'unearned'^
in¬

"earned"

two

comes,
respectively—are drawn
largely from the same source, viz:

industrial

and

other

productive

undertakings.
The State,
full

value

of

without

turn

tive

than

however,

extinguisher."

effec¬

more

taxation

"debt

as a

John

As

and

Stuart

Mill pointed out almost a century
ago:

"If property bore the whole in¬
terest of the debt, property might,
with great advantage to itself, pay
it

off, since this would be merely
surrendering to the creditor the
principal sum, the whole annual
proceeds of which were already,
by law, his, and would be equiva¬
lent

what

to

landowner

a

does

when he sells part of his estate to

free the remainder from
gage.

a

mort¬

•

.

"But," he adds, "property does
not

and cannot be made to
whole interest on the
Mill then goes on to

pay

the

pay

debt."

Mr.

that

argue

physical property is
only wealth that mankind

not the

has

received

from, the; past,-

and.

that the bulk of the accumulated
wealth is in immaterial form and

therefore is the
of

all.

If

common

advantage

individual

heritage
to

accrues

from

in¬

such

the

tangible forms of wealth, it will

re¬

be

produc¬

of

reaps

income

an

practical appli¬

income

tainly could not be used

the

tax

disturbing

tive ability, whereas a sequestra¬
tion
of physical
property (or,

largely manifested in the form
"income," which may be tax¬

able to the individual.

what amounts to the same thing,
a

heavy tax that

posal

may

require dis¬

part or all of physical
property of an individual as hap¬
pens in heavy estate levies)
is
likely to create widespread de¬
of

preciation that

may

render prop¬

goods almost worthless.
Moreover, it would require an ab¬
erty

or

normal

the

currency

State does

situation, since

not want

to hold

property sequestered and must
dispose of it for cash, and the tax¬
payer, who is compelled to dis¬

Securities placed in bank vaults
not become abandoned prop¬

do

erty in New York State under
State

of property to

in

become

the

be

Thus there would
temporary and possibly a

terrific
rency

short

disturbance

of

the

thaniel

probability, be followed by
a long, disastrous inflation..
: V
Regarding the immediate infla¬
tionary effects of the capital levy
for the purpose of debt, redemp¬
tion, the late Lord Stamn, in'his
book "Wealth and Taxable Capac¬
in all

,

ity," remarked:

Mr.'

Goldstein's

State

Asso¬

ruling,

ing for deflation, in soiar as debt
is being used as collateral, secur¬
ity forms a basis of credit.- You
withdraw
such
basis hod
the
credit thereon shrinks with defla¬

is possible,
lar^e repayment
It

capital levy might have two
effects;, first, the defla¬
tion would be so rapid as t.o dis¬
locate business, a^d +hns destroy
the stream of productivity
a

sudden

tturely; and second, the immediate
burden of the remainder of the

made

requested

was

:

b y

Comptroller Frank C.
The

Moore.
General added,

Attorney

however, that in
bank

had

the

where the

cases

right

under

vision

of

owner

to negotiate the

the

agreement

an

proceeds

abandoned

be

may

pro¬

with

the

Securities,
considered

property

after

15

years.

i

other

In

stein

held

opinions,
that:

Mr.

Gold¬

'

1. Undelivered funds,

"Every repayment of debt rep¬
resents a considerable force mak¬

effects.

the

to

Goldstein holds.

L.

yesterday,

cur¬

,

and credit situation.
A
deflationary period would,

tionary

banking institutions

nayable

pay

purpose.
a

a

providing that certain

Comptroller if unclaimed for fif¬
teen years/Attorney General Na¬

must find
available cash or credit for

cash,

have

law

funds held by

the tax ciated Press advices from Albany
others who Aug. 7,. reporting this, added:

pose

therefore, that a

a

demand

main

by

be

levy from a surrender to the
of physical property to a
for the cash equivalent,

State

subverting the "equality of sacri¬

with

prove to

tal

less

Ger¬

that

.

taken place gradually."
;
Thus the conversion of a capi¬

tend to promote a more
equal wealth distribution without

of

"Impost of National

Solidarity" will

of

because

the

countries

experiences
other

Judg¬

it.

similar levies, it may be assumed
that the

the

at

will also

make

Pleven

be easy,

not

the

and

1945.

and

control

under

now

20%,

of

increment

on

rate

is

100%.

maximum

wealth

The huge interest bur¬
which benefits the wealthy

should

"Minister of Finance Rene Ple¬

"To

that

on

war.

manner

ven,"

taxation

those who
fought and suffered than on those

the

;

of

heavily

more

vidual's wealth
five years.

last

might be greater both as to
and
principal
than it

.

But

.

and an¬
an indi¬

during

debt

interest

would have been if deflation had
The Difficulties Involved

where

consider-

The

more likely to be rent asunder
politically than solidified by it.

taxes—a levy on capital,
other on the increase in

outlook,




"national

solidarity" imposts.

he
is
preparing will
loopholes."
According to a wireless dispatch
to the New York "Times," on July
Capital Levy Explained," In the
30, the Consultative Assembly ap¬
opening passages he wrote:
proved a tax on the increment,of
"As a
professional economist, wealth and a capital levy by a
specializing to some extent in- vote of 233 to 2, after having
problems of public finance, it be¬ raised the minimum
capital af¬

debt
cancellation
or
ex¬
tinguishment were proposed*
In such study, I formed the opinion,
Great Britain the idea of a special which I still hold, that the policy
levy on physical wealth gained of the levy is fundamentally sound
the support of the British Labor
party.
It actually was proposed
by the Fabian Socialists, two years

"sacrifice taxes" and

to

pub¬

School

Party politician in 1923, he wrote
a
small book, widely circulated
in England and also published in
the United States, entitled "The

siderable

ing

Now, in the aftermath of this
it is France's turn to resort

.

war,

accrued, the returns, from be taken into account for
various
a revenue
standpoint, were insig¬ reductions before the final
pay¬
nificant and there was, indeed,
ment of the tax is demanded, f
little in the way of "sacrifice" on
"The

stabilization of her monetary sys¬

tem,

as

pitiless, perhaps, as the rich ras¬
cals
in the old-fashioned
dime

years

economic

sev-

supporters of the "capital
levy" realized the difficulty and
sought to overcome it by provid¬
ing for a partial payment system
with the payments secured by a

novels. :

immediately fol¬
lowing the last war apprehensions
of

However,

segregation.

eral

come

1

of

of property during the period
the

The New French Proposals

;

is

cor¬

prospects will remain
dark, dangerous and
levy.

needlessly

Thursday, August 16, 1945;

represen¬

ting

drafts, cable transfers and
transfers
sent
overseas
through domestic banks, might
money

not

be

erty.
2.

by

deemed

abandoned

prop¬

•

Money deposited with
a

notes

corporation
or

in

for stocks

or

a

bank

payment

of

bonds which

have been unclaimed for 15 years
is not abandoned property.
3. The Federal Reserve Bank of

New.York

comes

under the aban¬

doned prooerty lsrw, by
as a

definition,

"banking institution."

•

I

.Volume

MMMW

V

745

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4412

162

i

#•

Silver by

(Continued from first page)

Treasury

'

planning

(Continued from page 743)
effects

merchant

inadvisable

he

directs

distributed

to buy for his ac¬
corresponding amount of
future contracts.
When he buys
the cotton in the South to fill his
sale

y

the

to

he immedi¬

spinner,

makes

difference

no

■whether

or

market

the

advances

contracts
therefore

him
meanwhile

has

Ex¬

Cotton

York

This membership is

over

i

the entire Nation

members are planters,

among its
g i n ne r s

warehousemen, mer¬
manufacturers, bankers,

chants,

lend-lease end with the war,. tnai

deliver

loss

offset

is

by

the

increased

price at which he is able to sell
contracts.
If, on the
hand, the market has de¬
clined, the loss incurred in the

his

future

other

his

of

sale

at

contracts

future

is

lower than the purchase price

the
correspondingly
lower price at which he is able
to buy his actual cotton.
offset

The
ficers

by

following
the

of

are

New

of¬

present

York

Cotton

Koar;
Knell;

Bond

Club of Denver was a wheelbar¬
row

The head of each firm

race.

in the line-up
a

problem

here

an

England.

in

London

areex¬

six billion dollar American gift

as
the price paid to Britain for
ratifying
the
Bretton
Woods
Agreement.
The
"Economist,"
though unofficial, represents and
influences a school
of thought,

of

ly, if diplomatically, to the Brit¬

selected

four

a

recognition of which prompted
Secretary Clayton to speak plain¬

men,

each

for a distance of
50 feet.
The pushees were Nor¬
man C. Barwise of Merrill Lvnch,
whom would go

Fenner & Beane; Walter
Coughlin of Coughlin and Com^nv:
Donald
C.
Bromfield ~of

ish Government.

the

Under

Deliver,"

caption, "Stand and

"News

London

the

Pierce,

Chronicle's"

J.

stingingly rebukes the "Econo¬
mist," calling its proposition stag¬

Garrett-Bromfield & Co.; William

Sargeant of J. A. Hogle & Co.;
William E. McCabe of McCabe.

P.

Company; John T.
Webb of Otis & Co.; Amos Sudler
of Amos C. Sudler & Co.; Ernest
'ianifen

Managers: Eric AlliOt, Tinney C.

and

Stone,

of

Stone,

Moore

&

Co.;

Frederick Walter of Walter-Webb
& Co.
Other

activities

included

golf,

archery, skeeter shooting, putting,
bat
contest,
soft-ball game,
a
"clock"

White.

stakes."

Assistant to the President: Fred

game

and

the

"sweep¬

won't

amiable
Peter

rob

plan

to

pay

-t
'

the

to

British

fear

British, of course, have
something of a phobia over the
so-called "rigidities of the gold
standard."
They attribute their
troubles of 1931 to that monetary
system.
Between
that
British

or has been transferred to
governments under lendlease.
The latter arrangement is
made under a definite pledge of

dustry
other

return.

"It

self-suffi¬
Sterling Area is widely re¬

gold views of Mr. Winthrop Aidof the Chase National Bank,
who

mand.

of

the

the

and

masses

rich

is

in

now

London, there is

A

Congressional

loan,

expected here,

is

both,

shared
countries ot

have to. be

would

it

or

with India and other

there • are
still$2 bills in circu¬
lation, despite reluctance of many
people, to
carry
them.
About
1,500,000 are silver certificates.
"Monetization of the 300,000,000
"Incidentally,

Livingstone I So.
Opens in San Francises
(Special to The

Financial

with

offices

,

Chronicle)

SAN
FRANCISCO,
Livingstone
&
Co.
formed

about 36,000,000

CALIF.—
has
been

paper

for

Street, to conduct a general

some

investment business.

Officers

cost, which
47
cents.
As
monetary silver it rates a value

Rehabilita¬
Organization's

Relief

and

existence

the

of $1.29

stone, Vice-President and Direc¬
tor,
and
Thelma
C.
Watson.

Bankamerica

Francisco.

whom

of a

.

of

countries

and

William

H.

Bluhm

were

*

ST.

\

PAUL,

Securities

.

Chronicle)

to The Financial

(Special

of

with First California

'

MINN'.—Feromack

Corporation

The Financial

CALIF.—Ivan

OAKLAND,

dian

Chronicle;

E.

Central

in

an

Officers

are

engage

Ferrin, President; Jay V.

Frank J.

Bank

H.

liam

Miller was form
erly with Frank Knowlton & Co. Treasurer,
^l!illll!llll!ll|l!ll!llllllli!l!ll!llllll!!!lllllllllll!lllllllllllll)ll!llll!!ll!!llll^^

Secretary

Gurnee,

•

.

The
Australian and
Chinese current needs will vir¬
tually exhaust UNRRRA's pros¬

■

7

bloc.

Russian

Italian,

pective resources.

If You Have

Interest

an

Reappointment of Keynes
The recent

announcement of the

in Cotton Futures

reappointment by the Labor Gov¬
ernment of Lord Keynes as ad¬
visor to the British Treasury is
taken

London

in

and

a

replies to the
asked by rank

easy

being

liberal,

sign that

TVTE'D like
you to

of

but

.

.

know that

we

maintain direct

private wires between New York and New

questions
and file

Orleans.

Keynes is
course not a

party.

members of the
a

as

.

r

needs some clear

the Government

Further,

we

floors of the Cotton

have representatives on the

Exchanges in these cities.

Laborite.

The

man

in the street

Naturally, this is only the basic structure of our

in Eng¬

land, the man the Labor Govern¬
ment must please—for it was the
middle class that put Labor in

service

this time—is not much in¬
the big private
nationalized, although the
nationalization of the
Bank of

frequent special reports
like

.

are

regarded

here

as

highly imperialistic
enterprises,
exerting a powerful influence on
American
government
policies.

Exchange occupied the above quarters, located at 142 Pearl
St., New York City, during the period from Sept. l, 1870, to May 4,
1872.
It is now housed in the pretentious structure situated at 60
The

Beaver

The new building, erected in 1923,
appearing on page 743.,
*
...

St., New York City

shown in the photograph




is

Because of this

strange belief the

general reaction here to the news
a few months ago of a Wall Street
loan to

the Netherlands was un¬

favorable.

Britishers

concluded

on

yourself, have made

■

our

offices, plus

situations in cotton,
lifetime study of this

a

We feel that this service is of

trade

practical benefit to

interests, and think that you would agree
a

trial. Won't you

Towards large

stitutions

supplement it by

com

after

American banks
like Chase and National City, the
average Londoner is said to be
•much more suspicious.
Those in¬

We

carefully prepared under the guidance of men who,

England is another matter.
The
Big Five joint stock banks have
hundreds of branches which hold

be avoided.

interests.

production and processing to all

terested in having

banks

likely to weaken public confidence
in those large banks is likely to

trade

speedy relaying of information from all centers of

power

ihe deposits of the middle class
people.
Therefore, any measure

to

give

us

that trial?

Merrill Lynch, Pierce, Fenner
Brokers

in

been

McCoy, Vice-President, and Wil¬

Mr.

Building.

to

investment business.

Miller has become connected with

Brothers,

Building

has

the Guar¬

formed with offices in

to

V

o'

Feromack Securities Corp.

and

both

•

1942."

silver since

firm

new

Livingstone,

Company.

Mason

industry
little

by

Asso¬

R.

(Special

from

demands

the Government has bought

Com¬

San

in
be

formerly

was

of

at

an ounce.

"Because
other

Livingstone

books
about

averages

Livingstone, President
Treasurer; Clara N. Living¬

Charles

as

Treasury

are

Willard H.

Mr.

will make the Treasury a
profit of about $246,000,000,
'free silver' it is carried on

ounces

San-

206

at

Now With Mason Bros,

Sterling Bloc.

the

but

•

will

gift

as

of this top
only 10 in circula¬

$1,000,
are

run

v

tion.

ciated with him in his

unachievable.

Silver certificates
as

issue there

pany

as

is

high

the widest gap.

cient

garded

i-'

-\r

probable the new silver
certificates will be $1, $5 and $10
bills, for these are in greatest de¬

attitude

cially since threat of a

Russian,

*
'

ex¬

with free¬

The

tion into the atomic peace, espe¬

ing reveals
considerable

r

convertibility of

this country.

gers to

President

tion

•

costs.

street,

Director.

prolonged meetings here, is again
demonstrating Russia as the prob¬
lem
child of international con¬
ferences.
The vote at the meet¬

"■

the

synonymous

clue

plored by those seeking to per¬
petuate Anglo-American coopera¬

The United Nations

-

all

at
of

man

;

which will
take
place from time to time
rather than all at once, will make ;
possible the issuance
of about
$387,000,000 in silver certificates,"
the spokesman said.
"The
Treasury
has
approxi¬
mately 700,000,000 ounces of sil¬
ver bullion, unpledged for money.
About 400,000,000 ounces is being
utilized temporarily in war in¬
monetization,

"The

that Bretton Woods involves dan¬

and

but

/

day, which went on to say:

wealthy to take their
abroad.
Here is an im¬

portant

Paul, namely rob America to pay
India, Egypt, Australia, etc. This
debate between Britishers is de¬

perhaps

First Home of the New York Cotton Exchange

this

would

which

Americans

saying

for

fall

editor

financial

and

gering

"

■

it

prevent
same

changes is

:

planted himself in
and was pushed

wheelbarrow

by

Treasurer,
Benedetto
Lopinto;
Secretary, Tinney C. Figgatt.

Figgatt, Jere M. Locke, Arthur J;
Pertsch, Charles B. Vose, John C.
Botts, Edward A. Hillmuth, Rob¬
ert
J. Murray,
Charles Schudt,
Philip B, Weld, j; Henry Fellers,
William W. Kirby, George Nichols,
Charles
Slaughter,
Thomas
J.

lend-lease

active

annoyance
over
the
London "Economist's" demand for

Bankers Association and the

to

the

capital

bearing terms.

pressing

of the Investment

To

■

spokesman stated on Aug. 11,
according to Associated Press ad¬
vices from Washington on that

extremely sen¬

are

silver

a

dom of the

Britishers

Mountain group

want

Washington will sympathet¬
ically entertain any official Brit¬

that

Many, informed Americans and

DENVER, COLO.—A feature of
the annual frolic of the Rocky

planned by the
Treasury will about exhaust idle
stocks available for that purpose,
of

ounces

sitive to the flight of capital, and

ish request for a loan on interest-

v

Exchange:
President, William
H.
Vice-President, Frank J.

problem,

The Expected Loan from U. S.

his

bursting with dollars which
they wanted to lend all over Eu¬
rope.
To the man of the street
in London, loans by the ExportImport Bank to European coun¬
tries are much more palatable.
The British

300,000,000

The monetization of

Were

multilateral

utilized supplies

Oesivsr Bond GEub and

spinner against

sale, he must pay more for
the cotton in the South.
But the

America's

not

is how to dispose of the still un¬

buys the cotton

the

to

is

ances

One

against
fluctuations
in
price/and if the market has ad¬
vanced when he

obligations it
Allies, that the

her

problem of blocked sterling bal¬

tected

to

toward

had

commercial banks

that American

financial

whatever

etc.

to

declines, as he is pro¬

Assistant
Secretary
of
State
Clayton has advised that British

approximately through it America has fulfilled

countries, and enjoys
representation in all segments of
the
cotton industry.
Numbered

a

ately sells the future
bought as a "hedge." It

Secretary:

and foreign

the Exchanges
count

now

430 members.

of

of one

member

a

New

change

the

time of sale,

at the

cotton

spot

The

impossible

it

purchase

to

Assistant

Lordan;

Commerce

of

Congress Meeting."

John J. Scanlan.

cotton

finds

and

spinner
or

P.

sale of a
to a

a

of

amount

certain

Interna¬

next

Chamber

tional

ton

the

for

Securities

Underwriters and Distributors

and.

& Beane

Commodities

of Investment

Securities

NEW YORK 5,

70 PINE STREET

Offices in 87 Cities

N. Y.

and

ri *f|

Thursday, August 16, 1945

THE COMMERCIAL & FINANCIAL CHRONICLE

746

BROKERS

BOND AND STOCK
specializing in

<

"Guide to Railroad Reorganization

Chicago, Milwaukee,

Western R. R. Co.

Chicago, Rock Island &

Securities"

Chicago, Indianapolis &
Louisville Railway Co.

Pacific Railway Co.

We will discount profits and assume losses
■

pflugfelder, bampton & rust
Members

New

contracts

in the above
*

Bell Teletype—NY 1-310

-

Members New York Stock Exchange

Arden Farms

120 BROADWAY, NEW YORK 5, N.

Denver & Rio

Y.

Telephone REctor 2-7340

Railroad Securities

Preferred

:

.

SUTRO BROS. & CO.

New York 6

Telephone—DIgby 4-4933

Common &

"when issued"

York Stock Exchange

Broadway

61

Grande

St. Paul & Pacific R. R.

Special Interest in Defaulted and When
As
and If Issued Railroad Securities

5s, 1927

Company
Denver & Rio

Publishers of

'

.

Railways Co.
"A"

Seaboard Railway

' 1

.

Railroad Securities and Reorganization Securities

Chicago
Cons.

1

■

Grande—Status of Reorganization Plan

When the U. S. Circuit Court of Appeals, on May 10, 1945, re¬
versed the District Court which had approved the last of many plans

;

Broker-Dealer Personnel Items
If you contemplate making additions to your personnel
please send in particulars to the Editor of The Financial
Chronicle for publication in this column.

!

approved by the Commission, doubts were raised as to whether the
plan would be consummated.
In fact, the market in "when
(Special to The Financial Chronicle) ;
sociated with Thomson & McKinissued" profits on Denver securities, around 70% prior to that deci¬
BEVERLY
HILLS,
CALIF.— iioii, 340 Central Avenue.
sion, plummeted downwards to 30%, at which level a nominal market
Frank D. MacNaughton has been
exists.
•
•
added to the staff of Boston Com¬ i'
(Special to Tkk Financial Chronicle) ' '
To properly appraise this Cir¬ capital expenditures in the period
1937-44
totaled
$43.7
million, monwealth Corp., 9631 Wilshire
SAN
cuit Court of Appeals decision, an
FRANCISCO,
CALIF—
Boulevard.
Frank
Paul is with First Cali¬
understanding of the historic de¬ equivalent to $15,541 per equated
track mile, second to New Haven
fornia Company, 300 Montgomery
cisions of Justices Douglas and
as among the reorganization car¬
(Special to The Financial Chronicle)
Street.
Reed in the Milwaukee and West¬
riers, and total maintenance ex¬
ern Pacific cases, respectively, is
CLEVELAND, OHIO—Theodore
penditures amounted to
$111.4 Stratton is with Cunningham &
(Special to The Financial Chronicle)
necessary.
In essence both jus¬
tices reaffirmed absolute priority, million, equivalent to $39,599 per Co., Union Commerce Building.
j> SANTA MONICA, CALIF.—
equated track mile.
as originally upheld earlier in the
Sergius L. Rolbein has become
Denver benefited greatly from
affiliated with E. F. Button & Co.,
century in Northern Pacific vs.
(Special to The Financial Chronicle)
the war, being an essential link
936 State Street..
Boyce. The Circuit Court in the
together with Western Pacific in k KANSAS CITY, MO.—Theodore
Denver case followed the prece¬
F. Houx, Jr., has joined the staff
(Special to The Financial Chronicle)
dent set in the Milwaukee and providing a western terminus for
interchanged
with
the of Herrick, Waddell & Co., Inc., Ik WATERLOO,
IOWA — Archie
Western Pacific cases. These jus¬ traffic
?

Ernst&Co.
MEMBERS

Stock Exchange and other
leading Security and Commodity Excha.
York

New

120 Broadway,
231

So.

New York 5, N. Y«.

LaSalle St., Chicago 4, III.

V
Maine Central

^s, '60

Denver

«

■

Maine Central Pfd.
Maine Central Com.

MOP at Pueblo and the Rock Is¬

,

1012 Baltimore Avenue.

W. Linde is with Slayton & Co.,
(CCA) emphasized that with
land and Burlington at Denver.
Inc., Ill North Fourth Street, St.
capitalization of the reor¬
As compared with average gross
Louis, Mo. ■>"
ganized company insufficient to
fSpecial to The Financial Chronicle)
of $27 million in the 30s, war time
satisfy in full all claims against
LOS
' ANGELES, ". CALIF. —
revenues reached $73.69 million in
the debtor, there arose a contest
J. H.
Wichman has joined the
1944. Applying these earnings to
between various holders of dif¬
staff of Crowell, Weedon & Co.,
ferent
rank
or
priority.
With the Commission plan as approved 650 South Spring Street.
148 State St., Boston 9, Mass.
District Court, but re¬
claims of senior bondholders sat¬ by the
Tel. CAP. 0425
: :
Teletype BS 259
versed
by
the .Circuit
Court,
isfied in full, the Circuit Court
JV. V. Telephone HAnover 2-7914
held that-junior bondholders had fixed and contingent charges on tit (Special to The Financial Chronicle)
an overall basis would have been
'
»
LOS
been unfairly treated in that (1)
ANGELES,
CALIF.—
Dean Carpenter, general man¬
net increase in working capital covered as much as 4.75 times in Ilarry F. Maidenberg is associated
ager of the Roosevelt
Hotel in
the peak year 1942, with earnings
of $10 million had been at the ex¬
with
Investment Fund Distrib¬
New York has been appointed a'
of $44.26 and $36.32 per share on
utors, 650 South Spring Street.
pense *?f junior bondholders as
member of the Executive Com-,
were also
(2) prepayment of Rio preferred and common stock, re¬
mittee of the New York Conven¬
Grande Junction Railway 1st 5s spectively. We estimate that in a
LOS ANGELES, CALIF.—How¬
tion and Visitors Bureau of the
(Specl&I to The Financial Chronicle)
"normal" post-war year, net avail¬
($2.7 million), (3) release of Utah
and
Industry Asso¬
ard G. Rath has become associated
MIAMI BEACH, FLA.—William Commerce
for
charges should reach
Fuel
Co. without crediting the able
ciation, Inc., F. J. Andre, Presi¬
with Sutro & Co., Van Nuys Build¬ claim for the value of the collat¬ $8 million. This would have pro¬ J. Hills is with Atwill & Co., 605
dent of Sheffield Farms, Inc., and
vided an overall coverage of 2.08 Lincoln Road.
;:king, it is announced by Frank F. eral, (4) retirement of $1.2 mil¬
Chairman of the Committee, an¬
times with earnings of $12.80 and
Hargear, resident partner.
Mr. lion,, of equipment trust obligations
nounced on Aug. 7. Mr. Carpen¬
and
(Special to Thb Financial Chronicle)
(5) substantial new capital $7.22 for both the preferred and
ter will bring to the Committee
Rath, one of the senior members
common stocks, respectively.
expenditures, including Central¬
OAKLAND, CALIF. — Charles a wide experience in the hotel
Finances of the Denver are sat¬
of
the Los Angeles
Stock Ex¬ ized Traffic Control, all of which
J. Maguire is now affiliated with
and business promotion fields and
change, who maintained his own will make the Denver a more ef¬ isfactory, as of March 31, 1945, Capital Securities Co., 29 Grand will
represent the Hilton Hotels
working capital totaling
$16.76 Avenue. He was previously with
ficient carrier post-war.
brokerage and investment firm
Company which operates hotels
as
compared with only
An appeal may be filed in the million
Franklin Wulff & Co.
in Los Angeles for 35 years, has
throughout the country. In New
million at Dec. 31, 1938.
U. S. Supreme Court for a writ of $2.94
York, the Hilton group includes
just been discharged from active certiorari. More probable is the Denver's net investment in emerthe Plaza as well as the Roosevelt.
(Special to The Financial Chronicle)
overseas duty with the A. A. F.
remanding of the plan to the 'gency facilities, amortizable on a
"The appointment of Mr. Car¬
basis,
amounting
to
Commission and the rewriting of five-year
RENO, NEV.—Robert F. Schmitt
penter is in line with the Com¬
$13.2 million at the end of 1944, has been added to the staff of
a new plan.
mittee's plan to organize a vigor¬
will doubtless be translated into First
California
Company,
55 ous
Under the presently proposed
campaign for convention and
working capital (to the probable Sierra Street.
'
tourist business in the post-war
plan, attacked so vigorously by
extent of 60%) through the me¬
the
Circuit
Court
of
Appeals,
years", Mr. Andre said.
"New
tices

total

Carpenter Ranted to
Convention Group of

Commerce Ind. Assn.

>

'

■

...

Howard Rath Joins

Siifro & Go. in L. A.

|

.

Greene & Co. Admits

Eugene Ward as Trader
Greene

New

&

York

Co., 37 Wall Street,

City,

Mr. Eugene

announce

that

Ward, formerly with

Petronio & Co.,

has become asso¬

ciated with them in their trading

department.

debt

fixed

was

to have been re¬

million (in¬
cluding obligations of Denver &
Salt Lake) to $55.6 million, and
including
contingent
debt,
to
$74.71 million. New fixed charges
from

duced

would

have

$147.12

been

reduced

from

$6.6 million to $1.69 million and
including contingent interest (but
excluding capital fund and sink¬
ing funds) to $3.83 million.
During

Vicksburg,
Shreveport
& Pac.

the reorganization pe¬

Denver has virtually

riod

rebuilt

dium of tax credits.
Taxes

installing

property,

ized

Traffic

Control

Central¬

throughout

practically all of its system,. Gross

Denver
have
Federal income

profits taxes reaching

and

excess

$6.81

million in 1943, $5.15 mil¬
1944 and $2.48 million for
first four
months of 1945.

lion in
the

These
with

taxes

an

provide the

gross

Denver

excellent cushion against

inevitable

the

decline

both

in

and net earnings in the re¬
odds

With

now

favor of a

in

plan, the more junior of the
bonds, particularly the 5s

Denver

to possess specula¬
attractiveness. The senior 1st

of 1955, appear

tive

Chronicle)

(Special to The Financial

York must be ready to enter com¬

Fl,A.George II. Thorpe has become asST.

PETERSBURG,

Trust 4s, 1939, can be character¬
ized as a good conservative in¬

petition for the millions of dollars
in travel business in the post-war
era
for
which
the
competition

will be keener than

ever

possibilities

Denison With Mitchum Co
LOS ANGELES, CALIF.—Fran]
J. Denison has become affiliate*

affording

of moderate further

(Special

to The

Financial

Chronicle)

to possess greatest possi¬
of profit in the event of
either a new plan being promul¬

with

bilities

South Spring Street.
Mr. Denisoi
in the past was associated wit]

gated by the Commission or pass¬
age of the Hobbs Bill with more

Calvin

liberal allocation.

the country.

Mitchum,

Tully

&

KEYES FIBRE

Bullock, which firm hi
represented in various sections o

"ROCK ISLAND"

Class A and Common

Improved Reorganization Profit Potentialities

EXPRESO AEREO

Circular

upon

request

SEABOARD ALL FLORIDA

Mclaughlin, baird & reuss

6's '35

Adams & Peck
New York 5

Tele. NY 1-724
Philadelphia
Hartford

BOwling Green 9-8120
Boston

Co., 65l

Ry.

Common & Preferred

63 Wall Street,

before".

appreciation.
Relative
to
risks involved, the
Consolidated 4s and 4%s, 1936,

vestment,

appear

conversion period.

new

its

the

of

mounted rapidly,




Members New York Stock

I. h. rothchild &

National Association
Securities Dealers, Inc.

Member of

of

specialists in rails

co.
52

wall

street

HAnover 2-9072

n.

y. c.

B

tele. NY 1-1293

ONE WALL
TEL.

STREET

HANOVER 2-1355

Exchange
NEW YORK 5

TELETYPE

NY

1-2155

Volume 162

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4412




747

»<■

v

,

;v.-

>" ' ••£'''.>■-.,'- ■>'.'

v

:■"•■

-

':-

■;

^*

The new fast, powerful, coal-burning, steam-turbine electric locomotive—a big source of postwar jobs,
wjwiw

rw

IJI /'WW

.

BBM|7

W ■ ■■

pffsf;

Millions Of pairs of nylon hose will be made from coal. This will

that will

What opportunities willis won?
there
jobs after the
be for

workers?

7 Before

coal. So

the war, nylon was

were

one

can

say,

exactly. But this

much is known: business is
meet

planning to

war, new

of which

things after victory—and

jobs will

will coal
sources

coal

continue

industry.
as

one

Not

only

our

basic

of

of power, but from coal

there has

come

a

host of

new

—

and

remember,

you

it's

goods that makes jobs.

After the war,

beyond imagin¬
in coal.

will find sheer, wrinkleShimmering, fire¬

proof table-tops made from coal.
are even

There

revolutionary locomotives—in¬

research

there will be lots of

portunities. So, if

ished.

you are on a war

op¬

job,

it's

Victory must come first.

products

bine electric—that

Chesapeake & Ohio Lines
Cleveland
CHESAPEAKE

cluding the C 6s O-planned steam-tur¬

■/:- -;r

If you

coal

for

demand for

proof dresses made from coal. Sturdy

*

come.

mand

stay on it until Uncle Sam says

Postwar,

shoes made from coal.

the

Take

made from
sulfa drugs.

ing have grown from research

quickly the demand that will exist

for all sorts of

develop undreamed-of smoothness and

medicines, chemi¬

cals, plastics and things

.

out

the life-saving

-

During the
No

further increase its use.

efficiency. All this will increase the de¬

war

Jobs for returning soldiers, sailors, war

even

Power tO turn postwar wheels. More jobs from coal.

make jobs,

J-;*

7'-7

.

NICKEL

operate on coal and

777;:.';;''C7'

-;V

PERE

-

777"

"'

-

"

AND

PLATE

-MARQUETTE

' '7

have a war job, stay on it—there'll be lots of opportunities after Victory!

^

OHIO

■■>...

RAILWAY,

ROAD

RAILWAY

'

f

[J<

Hi

PRIMARY MARKETS IN

•

INSURANCE STOCKS

BANK and

Thursday, August 16, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

748

Royal Bank of Scotland

Statewide Distributors in

Incorporated by Royal Charter 1727

California and Nevada

OFFICE-—Edinburgh

HEAD

Huff, Geyer &. Hecht
10 Post Office Square
HUbbard

1-2875

NY

ST.

V+;-'

'

CG-105

CONNECTING: NEW YORK, BOSTON,

PRIVATE WIRE SYSTEM

PHILADELPHIA,

FRanklin 7535

WHItehaU 3-0782

0650

ANGELES, SAN FRANCISCO,

LOUIS, LOS

+

A

300

Montgomery Street

WestSmithficld, E. C.

8

/K

Charing Cross, S. W. I

49

650 South Spring Street

..

Bisbopsgate, E. C. 2

3

INVESTMENT SECURITIES

+1; -/

/

■■>/.:/~

incorporated

f

OFFICESi

LONDON

First California Company

Chicago 4
67 Wall Street 231 S. La Salle Street

NEW YORK 5

Boston 9

Scotland

throughout

Branches

SAN FRANCISCO

LOS ANGELES

Burlinglon Gardens, W. /

Teletype SF431-432

CHICAGO,
SEATTLE

Teletype LA533

64 New Bond Street, W. I

Private Wires between

San Francisco, Los Angeles,

New York and Chicago

TELEPHONES TO

HARTFORD,
,

This Week

i
'

.

of fire stocks, casualty stocks

comparative decline

trials has been as
-■

and indus¬

follows:

Decline

June 26, 1945 v Aug. 8. 1943

■

—4.2%
—6.7%
Std. and
—3.3%
It will be noted that the fire stocks went off more than the Dow
Jones. Industrial Average, while casualty stocks went off less.
From
the first of the year to the June 26 high, however, fire stocks had
advanced somewhat' more rapidly than industrials, though not as
Stock Index.———
Poor Cas. Stock Index...

and Poor Fire

rapidly as the

161.83
121.1
*59-0

168.92
129.8
164.4 2';

Industrials.-..--..^—.w—

Jones

Dow

Std.

casualty stocks.

And

Stdr; and Poor Cas.

Stock Index

10.9%
11.6%
15.0%

164.4

143.0 ;

—^

Advance

168.92
129.8 •-

."Tones-

£?td>.

;.y

June 26, 1945

1944

Dec. 31,

Industrials.—152.32
Poor Fire Stock Index—
116.3

Dow

resisted^
tional Fire, from 60 to 56 y2, and
the
and Phoenix, from 90% to 84.
It is perhaps of interest to look
Springfield Fire and Marine were
back eight years to the summer
the same on August 8 as on June
of 1937.
On June 23rd of that
26, vi2f 65 and 116 V2 respectively,
while the bid on Security of New year the stock market, as repre¬
sented by the Dow Jones Indus¬
■Haven declined only one point,
trial Average, was approximately
from 34 to 33. On the other hand,
at the same level as the high of
relatively severe declines were
June 26, 1945.
But fire and cas¬
sustained by Hanover Fire, whose
ualty insurance stocks were con¬
bid dropped from 28 V2 to 25%;
Hartford
Fire,
which
dropped siderably lower than they are
to-day. The relative position of
from 111V2 to 101V2; Home, from
the three groups of stocks is as
28% to 26; Insurance of North
shown in the following table:
America, from 101 to 93 V2; NaA few

individual stocks

For example,
American Surety

decline.

the

bids

on

Fire Index-—

Std. and. Poor Cas.

;

:

Index.—J

Despite this advance

of the in¬

while industrials
merely
regained
their
former
level, and which advance puts the
fire
and
casualty stocks above
surance

169.01

groups

highs of

1936-37

168.92

lOl.A

129.8

+

28.0%

106.3

Industrials..—_J_—'

Jones

Dow

Std. and Poor

Change

June 26. 3 945

June 23, 1937

164/4

+

(Continued from page 730)

The

nix,

of

co-owners

America

the

report substantial in¬
creases in premium volume over
the first half of 1944. Continental's
Fore group,

policyholder surplus
appreciably; the latter

and

assets

"Mr.

Very, very well.' I feel
certainly do not need to

Eccles:
that

continued:

dialogue
we

on
ourselves these re¬
and if we did not choose
to impose reserves we could sus¬

impose
serves,

pend
the
reserve
requirement
altogether, such as the British and
Canadians and every other coun¬
try in the world has done, and
they have done it very success¬

it

to

see

(pp. 21-22).

done"

it

previous

131.0 respectively,

124.3 and

they

were

up

every

does.

are

and go ahead as almost
other country in the world
It is
a
serious waste of

Paul

St.

Fire

and

Marine also

reports increased premium vol¬
ume, profitable underwriting op¬

erations, and substantial gains in

policyholder sur¬
Consolidated
liquidating
was $70.33
compared with

total assets and

plus.
value

$63.86 on December 31, 1944. *

Policyholder
Premium
Net

".oss

up

sary

one.

writtetn__^_____

Ratio

a—up

6.3%

up

the

vet

und.

.down

20%

up

-

15%

Up

1.5%

income

Dividends

•

_

Well selected fire

Murdock.

I

am

not

.

casualty

BANK

TRAVELERS

and

desirable exchange?
Eccles. I don't think so"

most

INSURANCE
Bought—Sold—Quoted

Laird, Bissefi & Meeds
Members

New York Stock

120 BROADWAY,

Telephone:
Bell
f,

a

CTthfvi

Exchange

NEW YORK 5. N.

AJU&SW&G,
Members

X.

and

BArclay 7-3500

Teletype—NY 1-1248-49
Wans<tt*r Tradeoff




I

York Stock

New

other

leading

WALL ST.
Telephone

,

Exchange

exchanges

NEW YORK S

DIgby 4-2525

and Executorships

Trusteeships

undertaken

also

■

"Mr.

M;;;',j

so."

the

of

Directors of the
Reserve
Bank of New

Board

Federal

of

representative of
the Reserve Board on this Board
of
Directors—says
in his book
Tomorrow's Business
(Farrar &
Rinehart. Inc., New York, 1945),
chief

"In an essential and final
the value of the [Federal
Reserve! notes lies, not in their

p.

186:

a

are

basically

sound

propositions, and, on a long term
basis, all things considered, thev
aonear

have

currently to be somewhat

undervalued.

of

fixity

the

use

if

and

of Keynes'

"Mr. Williams.

that

is 'yes,' except under
primitive conditions. It is
an evolution,
really, to the point
where you don't need gold, if you

the

ard without any

money

and

can

gold stand¬
/

it

to suggest

■

May I quote Mr.

whether he agrees?
Mr. Eccles reduced the gold back
of the Federal Reserve notes from
Eccles and see

Mr. Eccles said that,
necessity for any gold

40% to 25%.
he

saw

no

and that the

reserve
was

volume—he

willing to fix 25% as a con¬

cession to

an

outworn prejudice.

I remember his language.

Williams.

"Mr.

I

agree

Williams.

"Mr.

we

Bank Act

1935

tions

have

that

here

in

are

have them

was

the

all discussing

t.h^t the gold reserve
Federal Reserve note

Well, may T

question: Do you

think

that there mu«t be a common

nominator in the form

dollar

more

and

more

to

in gold.

Is that right?

"Senator Millikin.
to ask this:

balances

big hurry

very

I should like

If you do not believe

that

a

gold

reserve,

dollar

sound

does

requires

a

require

a

it

sound printing press?
"Senator
Murdock.

A

sound

"Mr.
wh*t

Millikin.

de¬

of gold if

Printing

[Laughter.]
Williams.

the

word

"Senator

I

don't

'sound'

know

means.

Millikin,

Well,
one
rapidly and gush
out lots of paper money."
that

will

work

Fallacies

That is unnecessary

"Senator Murdock.

this

remember

I

a

"Mr. Williams.

press.

the
of 1935. One suggestion
discussing the Bank Act
were

be removed.

a^k

only likes gold, but recent testi¬
mony has shown that those na¬

"Senator
^

+

I should like

that the individual not

with what, Senator?

him."

of

it,

reserve

"Senator Millikin.

gold.
*

answer

more

that a
gold flow would, then you have

all the essentials for a

is

I think you

clearing union;

international

that

People will ac¬

ferent

deposits in the way

bank

to

just so. But it is a dif¬
question when you ask do
could set up a mone¬
tary system without gold. I think

ex¬

transfer affects bank reserves

want

•

cept gold in payment when they
won't accept other things.
Now,

change rates and a flow of cur¬
rency
from country to country,
for example, through the use of
the fund with no gold in it, or

behind
insurance

banks.

all, and yet it would be what we
essentially mean by a gold stand¬
you

I

get all the gold I can out of the

One can set up a standard
which he calls the gold standard
and not have any gold in it at

if

im¬

very

psycholog¬
.,■:

ical importance.
"Senator Murdock.

gold.

ard,

is

Of

"The Chairman.

under
gold
different thing from

conditions even the

standard is

It

Williams.

"Mr.

think

I

Williams.

"Mr.

modern

I made in

185-186 he says:

very

portant.

%

when

pages

is

It

Murdock.

"Senator

To a sound

"Senator Murdock.

commodities, but in the fact that
they can be used to discharge ob¬
ligations
which
are
enforceable
ov

a lot of
That is im¬

advantage is that

people believe in it.
portant.
important.

convertibility into gold and other

And

gold; the gold is all right. It
some advantages.
One very

large

\,

"Senator Taft.

Chairman

has

I don't think it

Williams.

currency.

Ruml's Views

Ruml,

'+~"j'

is.

it

Beardsley

the

is not at all nec¬

essary—

thing is to make the system
difficulty' isn't with

The

work. vThe

He [Eccles]

"Senator Murdock.

"Mr.

ought to give up gold as an
money
if* we can
find effective ways of using it.
international

-:/'>
,,/ +

*

*

.

I don't see any reason why

we

I

:;■/

evolution, not revolu¬

I believe in

tion.

sound dollar?
don't think

to have a

under the law."

STOCKS

of

conducts
every
description
banking and. exchange business

Bank

Views

When you

Murdock.

Williams.

"Mr.

sense,

INSURANCE

Fund

Reserve

Federal Reserve Bank

(P. 47).

York—a

and

-_£4,000,000
£2,000,000
£2,200,000

Paid-Up Capita!

'sound dollar'

a

order

in

from 44.2% to 45.7%

profitsU_

investment

Capital:

Subscribed

referred
to by Senator Millikin, do you
I will put it this way: Of neces¬
sity must there be a gold base
of

talk

the

3.2%

Expense ratio__„___up from 41.0% to 42.6%
Stat.

In India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar

York, and of the

thinks that gold

"Senator

arguing

12^9%

up

surplus

reserves

premiums

Office:

Branches

Williams, Vice Presi¬

H.

>v

26, Bisbopsgate,
London, E. C.

Head

The

John

in

Kenya Colony and Uganda

compared with the
goods and services

II. Williams'

John

the Government

t8

Bankers

sale."

offered for

and an entirely unneces¬

money

aggregate results as follows:

8.9%

of

"Senator

practically the only
country in the world that requires
collateral. So, if you want to, why
not
cut
off
the collateral, the
Government bonds back of the
"We

.

up

things are as

at that time.

.

assets

of INDIA, LIMITED

186-187: "The fact

faculty
"Mr. Eccles. If you wanted to,
of
Harvard
University,
in his an international fund such as we
you might very well issue them
are discussing is to be successful?
testimony on the Bretton Woods
without anything back of this cur¬
"Mr. Williams.
Weil, I do not
Agreements bill, before the Com¬
rency, anything back of the Fed¬
mittee on Banking and Currency, think so. You might approach the
eral Reserve note, as I have ad¬
United States Senate (Hearings, problem another way: If you have
vocated for a long time.
When
gold and it has been the inter¬
Part 4, June 21 and 22, 1945) re¬
the Banking Act of
1935 came
vealed something of his position national monetary unit, what ad¬
along I urged that we eliminate
vantages do you see in giving it
on gold in the following dialogue
the collateral. It passed the House
up? That is a different question.
(pp. 343-344):

America, for example, re¬
I
ported at $59.41 for Continental, 29).
substantial gains in assets, and $65.06 for Fidelity Phenix.
"Mr. Eccles.
+
The fact that
policyholder surplus and premium This
we
have
back of our currency
compares respectively with
volume.
Net premiums written
$52.39 and $56.58, as of June 30. gold or securities in no way aids
were 11% greater than during the
this country. Whether or not you
1944.'
;
i '■
first half of 1944; underwriting
have backing to your currency in
As regards casualty companies,
profits
were
at a break-even
no
way restricts the issuance of
so far as reported, premium vol¬
level while net investment in¬
the currency. I want to emphasize
ume in general is above the first
come
was
up
11%%. Total net
that" (p. 34).
*
*
*
operating profits were $1.43 pep half of 1944, but the record is
share compared with $0.72 for the spotty.
Twenty
companies,
as
"Senator Murdock.
You don't
similar period last year, and par¬
thus far compiled by Best, show think gold plays any part at all
ent
company
liquidating value
in the fact today that the dollar is
Admitted

NATIONAL BANK

what

dollars are legal tender
gives them a certain value; what
this value will be depends on how
scarce or how plentiful these dol¬
lars in use for the purchasing of

of New

ports

$108.14.

gold.

that paper

dent of the

North

was

no

can

we

good." He says,

our money

further, pages

Very well, I would

point with you
just wanted to get the point clear.
are still priced,
with few excep¬ figure was $107,209,369, marking
"Mr. Eccles. Why have gold or
the first time in the company's
tions, at a discount from their
Government bonds
history when
it has exceeded collateral,
current liquidating values.
back of your currency?
This is
$100,000,000. Both companies re¬
Operating results of a few lead¬
the currency of the United States
port moderate underwriting prof¬
ing companies for the first six its and improved net investment Government, and they are the
months of 1945 have been pub¬
income. Liquidating values, on a backers of that money. Why have
lished.
Insurance
Company of
any collateral back of that?"
(p
parent company basis,
are
re¬
their

makes

much.

"Mr. Eccles.

like

I doubt

Murdock.

"Senator
very

that

know

all

"We

longer turn our money into
We
wonder,
sometimes,

quantity

fully.

money

Phe-

Bank, Ltd.

Mills & Co.

11111 Ost Gold and fiat Money

54.7%

Fidelity

and

Continental

Associated Banks:

Williams Deacon's

Glyn

prices have followed the general downward
of the market since the break from the high on June 26.

reaction

;

Insurance Stocks

VAN DEUSEN

By E. A.

TOTAL ASSETS

Officials

Some Fedeial Reserve

Stocks

stock

Insurance

The

—

CITIES

CALIFORNIA

£115,681,681

Bank and Insurance
I

PRINCIPAL

IN

7008

Enterprise

PROVIDENCE,

,

OFFICES

Enterprise 7808

PORTLAND,

6011

Enterprise

There

are

eralizations that

priately make
nificance

of

Expressed

various accurate
one

might

gen¬

aoDro-

regarding the sig¬

these

expressions

of

i

it",*". ¥fi».<«,*..•» :: VA**'•» Vl is <&*.

■>

iiW'A ■'.

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4412

/Volume 162

opinion, taken collectively, in re¬
spect to the alleged unimportance
of gold in our currency system,
assuming that we all desire the
best
that human ingenuity can
devise in the light of the world's

requirements
for
these banks
should be suspended altogether.
In short, it is the judgment of

experiences with different kinds
of money and monetary standards,
But
because
of the differences
in the observations made by the

paper money are

well as the different
considerations applicable to each,
it seems
preferable to examine
the views of each man separately.
three men, as

definitely as¬
maintaining

Chairman Eccles

!'

serts that the idea of

gold reserve back of our cur¬
is archaic, that reserve re¬
quirements are unnecessary, that
the Federal Reserve notes could
a

rency

well be issued without any¬
thing back of them, that gold and
securities behind these notes "in
very

this country," and
that gold does not play any part
at all in the fact today that the
no

aids

way

is

dollar

in foreign

desirable

so

exchange.,
Chairman

respect to gold, reserve
requirements of banks, and fiat

because of his official po¬
They have no value in so
they may be supposed to
reflect
the
lessons
which
the

only

experiences with money
taught. Indeed, they are a
contradiction, in every major re¬

have

spect, of these lessons. They are
nothing but the crudest sort of
a

theory of the

fiat paper money

.value of

old and
ible

money,

unsound as inconvert¬

as

Such

among

common

have

who

itself.

laymen

money

paper

ideas are

and they are as

studied

not

not

do

or

understand .the. lessons to be de¬
rived from the world's use of in¬

convertible paper money, but they
to

not

are

found

be

the

among

our

domestic currency

should be sufficient here to show
how

it

works

and

gold
—and

do¬

principle is concerned.

as

Ruml

of

Criticism

.

a

our

parity with gold without direct

conversion.

citizen

Ruml's theory as to
of money is that of the

Beardsley
the value

fiat paper money
of thought.
This

quantity school
is a thoroughly
discredited theory among careful
and
experienced monetary * sci¬
entists. It is the type of thinking
found, apparently most frequently,
among the uninformed on mone¬
tary
history
and principles —
among those who seem to suppose
that all anyone

need do to know
to questions of
monetary standards and systems
is
to
cogitate
for,
say,
five
minutes.
One

well wonder after
Ruml's statements

may

reading

Mr.

whether

he

has

read

ever

any¬

thing of importance on the ex¬
periences of the United States
with greenbacks during the pe¬
riod 1862-1879.
There is nothing
in

his

statements

thinks

he

what

to

as

its
apply to the
greenbacks during the years in¬
gives

money

paper

•

value that would not

dicated.

/seems

He

be

to

com¬

pletely unaware of the lessons
provided by our experiences of
that period with the type of paper
money
he
advocates,
to
say
nothing
of the
almost endless
lessons

similar

of

number

SSrlSSSfhl? Xtrl' 0b)eCtlVe,|Whieh he literature
could turn
and reputable schol
s.
uminous

to

domestic

our

because of

so

that

gold reserve is not neces-v
and is a concession to out-prejudice. Both put him in
the fiat paper money school of
thought, and on that all that one
need say is that Professor Wil-j
liams is just as wrong as any other;
advocate of fiat money. How hd
can become such an advocate ip

well

system of in¬

a

;(>./</ //

worn

convertibility which op¬
through the interrelations
existing between gold, deposits,
silver, and notes. \ ;;;//•
;

mines

of

the

United States

gold the

government

buy it all at the

who

will

fine

the

certain

most

guarantee against depreciation of

the face of all the evidence which

paper money or cheap silver
in terms of gold is direct con¬
a

it

vertibility,
that

clear

the

the

tain

of

value

can

standard

can

depreciate in
gold only if the people

find

some

way

to outbid

which he

standard

"Our currency can
of

to

seem

add nothing in the way of clarityi
To say that "One can set up a

a

long time.
terms

j '■

''

answer.

His other observations

domestic

our

at every turn is a
which perhaps only he

question

present system of:

in terms of gold for

currency

him

refutes

reasonably

seems

indirect convertibility may main¬

price—$35

same

ounce—and, for use in
the professions, arts, and industry
the government will sell gold at
that price, V:.;> When gold is pur¬
per

"Although

a

sary

erates

why

thority of the Gold Reserve Act
of January 30, 1934, devalued the
gold dollar by raising the golddollar price of an ounce of gold
to $35, he announced to the world
that we stood ready to buy and
sell gold at that price. "From the

far

where

cannot function

direct

mestic currency is maintained on

light of the lessons taught by the
world's experiences with money,
and that in his policies and prac¬
tices one finds little beyond con¬
tradictions and inconsistencies in
so

works

currency

When the President, under au¬

as

world's

;

chiefly fallacious

the nature of this indirect con¬

and extremely dangerous in the

sition.
far

the¬

Eccles

the

that

in

ories

the proper answers

opinions, expressed by
Eccles, are significant

These

author

this

on

version of

and

in

all"

at

is

calls the gold
have

not

to

use

gold

any

mere

J words

lacking in substance.
To call a
standard a gold standard is
confuse unlike things; this is
not scientific procedure. But it is
by such a confused "analysis" that

our

government in buying gold

paper

the government itself

to

or if
depreciates

from foreign
exporters, the dollar further.
deposits on the books of our banks
"The prospects of our people
are created at the rate of $35 per
Professor Williams is able to place
outbidding our government in
fine ounce.
Other bank deposits
himself among the other "modern"
buying gold are small;
people
and our paper and over-valued
John Laws of "advanced think¬
would
have to go into foreign
silver currency are interchange¬
ing" in monetary matters.
markets
with
dollars
and
pay
able
with
these
bank
deposits. more than
$35 an ounce for gold.
When gold is purchased from do¬
Has
Anti-Gold Bug
Bitten the
Only some great financial catas¬
mestic miners they, too, are paid
F. R. B.?
; :b/.:.:
,;';trophe—impending
or
actual—
at the rate of $35 per fine ounce,
These are not, by any means,
which would invite a flight of
and the resulting bank deposits
the only men, high up in the Fed¬
capital could give rise to this sit¬
are
indistinguishable from other uation. It
is, of course, possible, eral Reserve System, who have
domestic bank deposits and from
but there is nothing now to indi¬
expressed anti - gold, pro - fiat
those arising from foreign sales
cate that it is probable."
paper money views.
Some of the
of gold to us.
members of the Reserve Board's
chased

"In
this
manner,
gold, bank
deposits—foreign and domestic—
and our domestic paper and silver
money
become
interlaced with
one

another

purchasing
Thus

our

and

have

the

same

domestically.

power

domestic

is

currency

prevented from depreciating in
terms of gold because, in our deal¬
ings with foreigners, the govern¬
ment stands ready to export gold
upon
demand—in other words,

Williams Refuted

Prof.

of

statements

The

Williams

careful

this

In

bitten

to

provide

he

that

with

us

with

in

What

another

Federal
in the

some

Reserve
case

of

official

Allan

Bank

of

New

C.

York.

i

In

his testimony before the
Banking
and Currency Committee of c the

a

(Continued

Eccles

Mr.

a

Reserve

In another he says

agrees

themselves

thought."

Sproul, President of the Federal

states unqualifiedly that
he does not think a gold base is

sound dollar.

be

is found

one re¬

ply he

necessary

to

of

surprising
variety of
this anti-gold bug appears to have

of the nature of

the statements quoted.

placed

instance in which

is

partly because

have

"school

seems

puzzling, partly
supposed to be a
student of- money and
are more

he

because

staff

Professor

on

page

750)

-

in our vol-

on

this

sub-

It would

perhaps serve no use- jec^ Wesley Clair Mitchell's Histake space to pile tory 0f ^he Greenbacks should be
samples of the available evi-. sufficient to demonstrate tq him,

ful

purpose to

up

which

dence

refutes

con-

every

tention made by Chairman Eccles.
on money are full
works which would
deny the validity of his notions.;
-Tf it h<* trim. as this author asIf it be true, as this author as
serts, that Chairman Eccles' views
on
money are in direct conflict
with what the world's experiences
with money teach, then, perhaps,
the question of most importance to
the reader and to the country is

libraries

Our

j-0 any0ne

or

else, the serious erqUOted portions of his

rors

observations,

V"t'-jy

of reputable

-

whether Mr. Eccles has the power
to force his views into our laws.

It is not easy to say; he has

complished"

One may recall the part

direction.
he

"ac¬
things in this

some

nh^e^eU Can°no" .10nI?r lurn ?ur
tnat we. can n0. longe^tur^our
into
gold. -We wonder,
sometimes, what makes our money
good." One may readily suppose
money

that that is

parently has made no study of
the machinery of indirect conver¬
sion of our Federal Reserve notes
into

fiat paper money
(so-called
National Currency notes), begin¬

But his

ning in December, 1942.
influence in behalf of

a

fiat paper

in that case was shown not
by his being able to persuade
Congress to write his theories into
law but by a violation by the Re¬
serve and Treasury authorities of
the laws of Congress relating to
money

the

issuance of those notes.

By

a

law, signed on June 12,1945, Con¬
gress put an end to the further
issuance of these notes.
One of
June

the

of

law

directed toward

were

reduction, in
the

this

of

12, the main provisions of

which

of

peculiar and para¬

features

doxical

Federal

fact

reserve

Reserve

that

the

the

requirements
banks, is in
reserves

now

provided for, with the approval,
and, apparently, j upon the 'rec¬
ommendation, of Chairman Eccles,
were
restricted to. gold - certifi¬
cates—the
paper
monev
most
closely tied. to gold—while all
other Treasury currency was ex¬

which

them

removes

•

type of money into which
improperly places them.

he

Our System Linked to Gold

000 of Federal Reserve bank notes
a

gold

from the

played in converting $660,000,-

into

precisely so—he "won¬

ders" rather than finds out. He ap¬

Under

system of a restricted

our

international

gold bullion stand¬
domestic Currency be¬
came,
after devaluation of our
gold dollar on January 31, 1934,
inextricably linked to gold by a
system of indirect, rather than
direct, conversion.
; Since
that
ard,

l.>"!

our

date,

and

this

under

system

BEHIND
THE NAME

no

domestic dollar, whether paper or

silver, has parted company with
gold. This was not the case from
March, 1933, to January 30, 1934,
or during 1862-1879; and in these
experiences alone Mr. Ruml could,

Did you ever

a "radio ham"? If so, you know
perfectionists they are where their
hobby is involved. That is what lies behind th.e name
Hallicrafters.

if he would take the time to find

Hallicrafters

out, discover the principles de¬
termining the value of money
which

his

would

reveal the

observations

This

for

namphlet,;.
Gold

the

Mr.

Ruml

with

a

cluded

as

-

lawful

for

money

in these banks.

re¬

In the light

of his

theories, Chairman Eccles
should have fought for the exclu¬
sion' of

gold

inclusion

of

certificates

and

the

all

non-gold money,
particularly his fiat National Cur¬
rency

notes,

Federal
as

as

Reserve

the quality

in

banks

of the

course,

and

so

far

reserves
,

concerned

for. the

reserves

.

recognizing,

that he insists that




is

of

reserve

boys growing

Hallicrafters

ture

brief

version operates

Hallicrafters

gold.

a.

It also outlines

disadvantages
the

to keep

United

to

States

the
in

our

do¬

parity with
some

men

all

over

that it did when

along with the mysterious

continuing forward

progress

is

sea

people of
being com¬

upon

the respect which
products of

the world have for the

perfectionism. Hallicrafters future is the

future of short

of the

pelled to live under such a system
among other things, it points
out. that our gold is readily avail¬
able to foreigners but not to our
own people.

up

reputation is built

radio

on

men

by highly skilled radio technicians. The Halli¬

crafters

adequate explanation of
how this systom, of' indirect con¬
currency

of

wave

and in the air...

radio communications
a

tically unlimited.

future that is

on

land,

at

exciting and prac¬

COPYRIGHT J94S THE

HALLICRAFTERS CO

—

Some brief excerpts and
summarization*

from

phlet (especially from

that
pp.

some
nam-

10-11)

BUY A

THE

WAR

BOND

TODAY!

HALLICRAFTERS

CO.,

OF SHORT WAVE RADIO

WORLD'S

LARGEST

EXCLUSIVE

!

V.-.T

business which still

securely based upon decades of research and manufac¬

though

mestic

a

discovery of "wireless telegraphy."

The

.

serves

this hobby and out

new

The

Monetary

provide

to

were

Committee

Policy, 1 Madison
Ave.. New York, 1940, 35 pp.), will
on

devoted

they

Standard

(Economists' National

were

business. But it is

holds the fascination for these

quoted above.

author's

Case

it grew a great

of

error

know

devoted

what

MANUFACTURERS

COMMUNICATIONS EQUIPMENT, CHICAGO 16, U. S, A,

uhv

THE COMMERCIAL & FINANCIAL CHRONICLE

?50

The
1

•>

*-*.

....

Union Bond

is

that

sooner

or

Some Federal Reserve Officials

availability of the en¬
ergy of the atom may bring radi¬
cal industrial changes.
"Such thinking admittedly

■

j

reaches far into the future
the

as

BdnuF

industrial

of

use-

On Gold and Fiat Money

far

as

atomic

(Continued from page 749)

is concerned. Symbolic it
is,
however,
of
the
constant
changes taking place in industry,
and suggestive it is o? the wisdom

energy

Prospectus upon request

LORDABBETT GROUP

second

this

later

«

I OF INVESTING COMPANIES [

of

those

who

accumulate

United States

'an

NEW YORK

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CHICAGO

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in

Basis

for

Boom

the

in

did

Heavy

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Mutual Funds
T

Peace Is

!<:>

Fundamentally Bullish

of developments toward^ world peace during
weeks brings interesting and significant reports :crom
three Mutual Fund sponsors citing bullish interpretations for business
The rapid progress

and securities.

National

Corp., in the current issue of
the following from its July 19, 1945,
^
«
1

& Research

Securities

quotes

Timing,

jSSUe:

surren-'
negotiated—would prob¬
ably mean apprehension over a
possible
degree
of temporary
chaos, it would be evident that
peace would enable industry to
"While sudden peace

der.

—

or

actual

effect

.

Prospectus

supporting facts are then
to
add strength to
this
out that it
some weeks

adopted the

discounting
and the early reconversion

period to follow.
conclusion is reached that

"regardless of how it comes about,
recent events would indicate that
the cessation of hostilities will
occur before many months—thus
the dawn of a new era of peace

prosperity in business and
security prices is in the offing."
and

*

a

a t
manufacturing companies
plan to spend an additional $2.8

on

these

on

road
equipment, industrial ma¬
chinery, etc., and the railroadsare clearly
destined to be prime

Request

DISTRIBUTORS

beneficiaries

the

of

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bulletin entitled "Minority

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Hugh W. Long & Co. asks: "Will
the atomic bomb engulf the coun¬

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prosperity

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new york 8, n. y

a

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At the top of the market in

Lord, Abbett, in
vestment
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National Securities &
Research 3
120

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BROADWAY, NEW YORK, (5)

Bulletin

a

current In¬

on

American

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tion some new thoughts with re¬

gard to the "cosmic" bomb.
first

The

being that this dramatic de¬

velopment is another refutation of
the pessimistic opinion that the
minds of men have gone as far
as they can go and that progress
has taken all of its

possible for¬

ward strides.

v

Shares of Capital Stock of

billion

and

market

in

Stock

at

the

not

that it "did not have any partic¬
ular use" for us?
The answers
to be obvious.

Average was

ments

other

to

be

$160

billion.

The report states that the level
of

national

income

is

significant

marketwise because it determines
the

general level of business ac¬

tivity and corporate earnings. "It

ket

of

new

money

study then brings to atten¬
has

lagged

behind

Directors

The
mental

the

in-

of

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from

your

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local investment dealer or

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the

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Distributors
Group — Portfolio
folders for July on General Bond
Shares, Low Priced Shares and
Railroad Bond Shares; July 31
Investment Report on Group Se¬
curities, Inc.; current Steel News.
.

.

*.

.

,

.

Lord, Abbett—Latest issue

of Abstracts.

.

.

National Se¬

.

Research

&

Corp.—De¬

scriptive bulletins on National
Speculative Series and National
Selected Groups Series.
lected

Investments

issues of

.

Incorporated
National Distributors
48 Wall Street, New York 5, N. Y.

manifestation

a

of

the
'

of

man's

way to make a

piece of paper as
gold without making
convertible, directly or Indi¬
rectly, into gpld.
*

valuable

as

it

.

Steel Payrolls Increase

Sharply Despite Fewer
Number of Employ ers
"j Steel

Important."

.

Seemed

;
.
Hare's, Ltd.—
Report dated June

,

creased., sharply oven the cor¬
responding period of ; 1944, ac¬
cording to the American Iron and
Steel

Institute.\

time

employment

first half of
700

per month, declined
576,000
persons
per
month averaged
during the first

the

half of 1944.

The Institute's state¬

ment further adds:

"The six-month total payroll of
1945 was $888,731,000, contrasted

with $849,465,000
paid by the in¬
dustry to its employees in the first
six

months

not

of 1944. The figures
strictly comparable, how4
ever, due to the extent that pro-:
for

retroactive

*

❖

v...,;

.:'

,

*

Fundamental

montly totals for 1945.
^
"In
June, wage-earning em¬
ployees of steel companies earned
an

average

hour, which
record

of

earned

last

the

of

127.2

was very

127.3

payable Sept.

stock of record

Nevertheless,

payrolls

declined

$144,082,600 from $154,

1944

totaled

$140,484,400.

"During June
561,800' employees

an

average of
was bt work in
the industry, compared with
564,600 in May and
569,800 in June
1944.

"Wage

earners

: worked

an

average of 45.5 hours per week in

June,

compared with 47.3 hours
week in May and 47.7 hours
;
•

per

per week in June 1944.
,

"The

average

127.2

?«!?J17-7 cents
—

hourly

earning

cents
per

compares
hour in May

per hour in June

;

^

..

With Wasson & Co.
(Special to The Financial
Chronicle)

15, 1945, to

Sept. 3.

per

hour

per

035,100 in May. Payrolls in June

of $0.22 per

Quarterly dividend
share

Inc.

cents

close to the

cents

March.

industry's

in June to

1944".

Investors,

in¬

wage

creases
authorized by the War
Labor Board are reflected in the

With 126.4 cents

P

•

'

Group Shares.

Dividends

the
same
during' the

persons

from

figure- of

•

At

1945, averaging 565,4

30, 1945, on Institutional Securi¬
ties,. Ltd.; current folder on Bank
.

payrolls during

company

the: first six months of 1945 in¬

Se¬

;

.

Co.—Current

"These Things

!

Cleveland, ohio—Charles
E.

Pryor

has

become

connected

Ltd.— with Wasson & Co., of Ohio, Inc.
Mr. Pryor has
recently been with
A semi-annual dividend of $0.0275
Institutional

HUGH W. LONG and COMPANY

"wave
'

another

on

September 3, 1945.

the

these

that they

Regardless of what the correct
explanation of it may be, this
phenomenon at least seems to be

visions

Semi-Annual

current issues of

Investors, Inc., have

quarterly dividend
No. 47 of 22 cents per share
payable on the Corporation's
capital stock September 15,
1945, to holders of record at

riding

future"?

are

declared

ONE

the

,

curities

Fundamental Investors, Inc.

PARKER

which

know

between

Semi-Annual

BOSTON.

to

ing performance of

tion the fact that the stock mar¬

THE

countries

expected

the

was

are

it be that

officials think

frequent unwillingness to learn
from, and to profit by, past ex¬
have as much gold as we can keep periences. It also seems to reflect
against our very greatly expanded the oft-expressed hope or belief
paper money, bank deposits, and that we can still make something
commitments to make heavy pay¬ out of nothing—that we can find

the

and the

Could

Reserve

addition to what it will always
buy, there is the further fact that
it is extremely important that we

of

169

national income in 1944

The

from investment dealers

But in

year

high

May of this

is also the source

be obtained

it

Reports dated June 30, 1945, on
Keystone Custodian Fund Series
B-I and Series K-2; charts show¬

seeking investment employment."

Investors may

future.'"

use

was

the Stock Average was 194
while the national income was $71

argu-f

ample.

it

seem

less be¬

than by contagion and ex¬

Just because

not

we

happen to buy with
immediately upon its receipt,
does
that justify the statement
we

wane

of the merits of the

cause

please to buy

we

goods and services?
did

since

he

when

"When political movements

There is always a large
group that is eager to align itself
with the supposed 'wave of the

can we

when and where

difference

1937

Prospectuses upon

gold,

And

chart shows that in 1929 when na¬

makes

said:

tum, they grow and

.

which

unfortunate' situation

have acquired a certain momen¬

gold? Is there any
to man that has a
purchasing power?
money that is less likely

In a covering letter to dealers,
presenting a new folder on the
Railroad Equipment Industry Se¬
ries of New York Stoeks, Hugh W.

calm

Securities Series

.

paper
and
gold and to demand the gold when
they want it.
Why such reasoning as that re¬
of insufficient planning for the
vealed in the quotations above is
end of the war?"
to be found among these men in
The article then points out that Long & Co. reports that railroad
such
high places is somewhat
although the majority view on the equipment stocks appear attrac¬
tive irom several points of view. mystifying. One rather expects to
duration of a business recession
First of all, railroad equipment find
monetary demagoguery in
following the war appears to be
shares need a 47%
advance to Congress diiring a severe business
powerfully influenced by current
reach their 1937 highs, while the recession and depression, < and it
stories out of Washington on de¬
is not surprising to find many
Dow-Jones Average is within 14%
lays in the reconversion program,
of its 1937 high.
And, secondly, people uninformed on' monetary
experience shows that successful
investors have often been those "a better way to measure value, matters, who have lost their per¬
who have held opinions on eco¬ is to compare present prices with spective during a period when
nomic
and
financial
questions peacetime prospects for the in¬ suspension of specie payments is
which were widely at variance dustry."
widespread throughout the world.
But one should not be able to find
with mass psychology.
National Income and Stock Prices
such shortsightedness and lack of
In the interest of performing a
In the current issue of The Key¬
understanding of the issues sur¬
service to investors who are in stone
Investor, Keystone Corp. rounding
gold and fiat paper
danger of being guided by emo¬ presents a chart showing national
money among men holding key
tional
thinking,
this
sponsor income
compared with the Dowquotes a number of highlights Jones Industrial Stock Average
crease in national income during
from the August letter of the Nafrom 1928 to the present.
The the
past four years.
tional City Bank of New York
63 wall st.

Henry Hazlitt, in his Monday
article, The New. York
Times of July
30, may have
pointed to the explanation of this
financial

ment

may

Railroad Equipment Industry

-

..

took this

"the

evidence appears conclusive that
the heavy industries—steel, rail¬

fallacious¬

eral Reserve officials.

Or any
to lose its value?

con¬

Group,

its

from these and certain other Fed-

money known
universal

would

figures,"

Distributors

,

indirect-debt-repudiation scheme,
the people of the United States
could count on little or no help

use,

amounts."

understand

more

credits.

or

particular

any

mean

bark upon some

is better than

th

ahead."

points
seems evident that for
now stock prices have
gradual process of

In

survey,

A companion survey by the De¬
partment of Commerce reveals

tinues

Group Securities, Inc.

statement.

The

The

have

:

Explanation

This situation would appear tp
that if Congress should em¬
fiat-paper-money,

/?

we

Briefly, if we export goods or
services, can anyone name any
type of monetary payment that

which covers nearly 7,000 manu¬
facturing
companies,
indicated
that
expenditures
for
capital
goods in the first year after V-E
Day will amount to $4.5 billion.

ceivables

A Class pi

'

peace

industries.

"Based

reconversion much

article

ness.

b y

e w s

non-military goods and $1.9
billion for increasing trade re¬

Steel Shares

term."

The

N

should

of

quickly. Hence, fundamen¬
tally, peace with Japan should be
construed as bullish for the long
Six

Investment

billion for increasing inventories

more

listed

survey

Distributors Group to demonstrate
the boom which is evident for the

heavy

the past few

Investment

current

Department of
are used in a

a

not

unlimited

•

,

An

services

and

for which

(Bold
face supplied by this author.) The
bold face portion is a currently
popular cliche, sometimes used,
unfortunately,
by
people who

Industries

.Returns from

goods

our

return for gold

in

vestment securities."

LOS ANGELES

sell

to

a carefully diversified and con¬
stantly supervised portfolio of in¬

INCORPORATED

System.

Senate, June 21, he
(Hearings, Part 4, p. 314):

"Under the gold standard we com¬
mitted ourselves to give away or

of

Lord, Abbett & Co.

positions in our Federal Reserve

said

anchor to windward* in the form

.

Thursday, August >16, 1945

Securities,

.

the

per

share on Bank Group Shares,

payable Sept. 30, 1945, to stock1

Aj!

w/in/iv./Y

A

lief

51

o.p.a.

with

Ten Winkle
Stieglitz and
local manager for
Douglas &

was

Co.

■

In

the

past

he

was

.

r^TT-r^r--^^

Volume 162

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4412

$175,000,000 of 2%% debentures
only a fortnight ago, American
Telephone & Telegraph Co. is now
reported
preparing
to
register

Dominion of Canada

with the Securities and Exchange

$100,000

Commission for another big
of refinancing,

said

•'/' t'\ '. ^i

,S

'

.j-r^V.

-

1971-75

for

Payable
i

Canadian

or

the

seek

to

what happens on

yield 3.85%

Minnesota

in

plans

refunding

will
probably outdistance the railroads

Direct Private Wires to Buffalo,

as

of

source

a

they

emissions in

new

enters

the

WILLIAMS

industrial

new

far advanced as

as

age

Unencumbered by a burden of obso¬
lescent plants and the methods of a past era, the Dominion alertly
views new and wider economic horizons. Lack of population is
no longer a handicap:
Science and the machinery of the future
will increasingly replace human labor. Frigidity of climate now

manner

a

that

indicates

which

CANADIAN STOCKS

country in the world.

any

pushing

Public utility firms are

BRUCE

By
Canada

Light

&

•

Canadian Securities

this occasion.

Power

Teletype NY 1-920

ex¬

are

new

the

sizeable

of

is

$26,000,000
new
bonds and $6,000,000 of ten-year serial notes
to retire $32,289,000 of outstand¬

reservoir off material for plastics

from

ing bonds.

*

1-702-3

oil fields.

Power

&

plans

mortgage

This

operation is planned as
part of an overall program aimed
at improving and simplifying its
capital structure and removing a

OUR

of

lien

REPORTER'S

indebtedness

certain

purchased

property

Northern Power

on

Great

from

Co,

Consumers Power Co.

REPORT

A

proved
instance of the

which promises
being
undertaken
by American Tele¬
phone & Telegraph was placed in
the mill by the Consumers Power

current lull in the new issue mar¬

Co. earlier this week when it reg¬

ket this week. Like most everyone

istered

often

the

for

the

certainly

and

the

in

case

to

happen

that

Things
best

the investment
banker would rather be busy and
business

in

else

But

circumstances-

pre¬

vailing this week inquiry very
likely would find that the current
hiatus was most welcome among

underwriting fraternity.

the

Short-handed
*

due to delayed

to

begin

with,

vacations result¬

ing from the July rush of well
over
a
billion in new issues,

*

bond

:

relished

*

hardly

would

men

have

bringing out any sizeoffer-

:

able amount of corporate

>

ings with

■? in the air
last

situation up
it had been since

the

war

as

its

conditional surrender terms. They

of

bonds,

due

000

sought to move mountains
face", but in the- net re¬
they
haven't
saved
very

1975,

'

r

-

However in the

course

'

of their

stalling
the
financial
markets
have been given more or less to
marking time.
No acute weak¬
ness has been apparent.
On the
'contrary the surprise has been the
absence of,any appreciable liqui¬

and

$15,000,-

making
a

naturally

traders

hesitated

in

new

safe

treading

of

commitments, and

assumption that in¬
would

slowly

stantial issues of

as

well as

have

been

had 1

any

new

securities

sub-

been brought to market.

investment market doubtless will

the

Labor

Day

Amer. Telephone Plans

Having successfully concluded
marketing of an issue of

the




of

sources

also

is

highest

the

on

In the field of radar and
electronics it will soon be possible
to reveal the Dominion's promi¬
nent wartime role.
The aviation
plane.

industry is now firmly established
and the recent announcement that

of

Britain's most powerful group

give a
tremendous fillip to this industry
in Canada. In this connection, the
Canadian subsidiary will

a

geographical situation

Dominion's

\

.

latter

includes

;

of alloy metals es¬
the
manufacture of

jet-propulsion

for

motors, will make Canada a for¬
midable challenger in the realm
of aeronautics.

added to
which

Other metals recently

have

acquired added importance
used

storage

appointed

Louis

St.

to

tantalum

and

batteries,

with its widening range
ern

Co., St. Louis, has
by Mayor Aloys

of

high-efficiency

in

ex¬

■v

-'

of mod¬

Last

but by

no

means

the Dominion's vast

pitchblende

deposits in the North
ritories,
made

have

least,

since the war
world's lead¬

Canada the

ing supplier of radium and the
metal
that has
just rocketed

St. Louis' slum clearance program.

tributing vitally to the produc¬
tion of the atomic bomb, Can¬

.Monasterio

departed Aug. 2

England with W. L. Heming¬

President of the Bank, who

will, be a delegate to a meeting
of

the

International

of'

Council

Commerce

Chamber

ing democracy.

^

recently

Anti-Slum

publicity—the

ada, togetheir with this

Con¬

country

stands first on the
threshold
of a new economic
era which will transcend
to an
and Britain,

As

named

an

bombings,
some

been

Louis

much

construction

wiped

Albertas

but

Internals were

and

fairly actively in demand. Montreals were steady and unchanged.
the

the prohibition

Albertas from
Canada raised the price internally
about 10 points but the resultant
flow of
two-pay bonds to this
country
was
comfortably
ab¬
sorbed.

The

of

export

T

recent

of free

weakening

brought about, as antici¬
pated, an investment demand for
internal high-grades, and the ex¬
change rate consequently strength¬
ened to 9 3/16% discount.
Inter¬
funds

.

Uranium

national

Mining

planning
already

before reacting to

$1.95.

With regard to future

high-grade

externals

levelled

have

out

at

prospects,
appear
to
about

in

below

their

inherent

contrast

with

attractiveness

could

gather valuable

in¬

formation for its own program.

with

tion

withholding

excess

during 1944 is being stepped
up with a view to completing the
work between the 1st and 15t,h
made

of

This

September.

earlier

than

the

is

month

a

original goal of
announcement

The

15.

October
says:

Of

estimated 22 million in¬

an

refunds

dividual

be

to

imade,

10,968,000 refund checks were is¬
sued up to July 27, amounting to
$481,980,000.
Refund checks are
now
being issued at the rate of

1,600,000 a week. This is being
accomplished by working day and
night shifts and overtime, and
utilizing equipment to maximum

capacity.
Refund

checks

from

range

a

few cents to several thousand dol¬

lars, the average being about $45.
In order 1 to
facilitate payment,
refunds
as

are

based

on

tax returns

filed by taxpayers and are

sub¬

ject to later audit by the Bureau
''4

of Internal Revenue.

David 0. Hir! With

comparable do¬

mestic issues should lead to con¬
tinued demand,

ulative

holders

especially
are

as spec¬

now

encour¬

aged to maintain their positions.

Taylor, Deale

&

Company

64 WALL STREET, NEW

i

Mitchell & Company, 120

way,

New

York

David

O.

City,

Hirt

with

Broad¬

announce

has

them

become

in

the

Mr. Hirt was

formerly with the New York of¬
fice of the

Continental Illinois;

YORK 5

Hay dock Schreiber Admit

WHitehall 3 -1874

Haydock

Schreiber & Co.,

Broadway, New

120

York City, mem¬

.

bers

of the New York Stock

will

change,

canadian securities

have

done, and it is believed St;

IV2

their recent highs
and now appear to be of good in¬
vestment quality.
Internals are
again around their highest levels
points

but

refund of income taxes in connec¬

a

by

and

stock

spectacular feature, rising
from 90 cents to a high of $3.55

Withholding

Secretary of the Treasury Vin¬
son announced on Aug. 2 that the

trading department.

With

out

From Excess
,

associated

Commission, Mr. Mon¬

London

1

the market for the
another dull period
was experienced as expected. Na¬
tionals were off about a % point,

don and other cities are doing and

of

■

that

asterio will investigate what Lon¬

about housing.

Refund of Income Tax

week,

of

representative of Mayor Kauf¬

who

world-wide

a

Turning to

past

London.

They will be gone six weeks.
a

into

wonder element uranium.

takes

logical and constructive step for¬
ward in a manner fitting a lead¬

West ter¬

England's plans
for
rebuilding bomb-devastated
and slum areas, as a means of
gathering more. information for

amine first-hand

way,

Canada

Thus

'v

WHitehall 4-8980

without, however,
trespassing on the provincial au¬

co-ordinated
tonomies.

6,N. Y.

61 Broadway, New York

closely

Provincial governments be

was

utility.

Members Toronto Stock Exchange

the functions of the Dominion and

list

formidable

Canada's

in modern industry, are mercury

Monasterio, Vice-Presi¬
Mercantile - Commerce

of

enviable position as pro¬

CHARLES KING & CO.

Furthermore it is

steels

Kaufman

Mr.

provinces will
fundamentally strengthened.
proposed that

be

special

its

Bought-—Sold-—Quoted

Rowell-

Royal Commission, as a re¬
sult of which the financial posi¬
tion of the weaker

Supplementing this almost in¬
exhaustible store of raw mate¬
rials, Canadian technology and re¬
search

Alberta Bonds

Sirois

on

much

;

older

of

depletion
supply;

of the

recommendations

to

expected to

after

increasingly drawn upon with the

Stuart

sential

plan to do

sizeable pro¬

tapped re¬
will be

category

Province of

con¬

implement,
as
long
advocated by Premier
Garson of Manitoba, the

The rescinding of

be in good shape for the resump¬
tion of new offerings which is
assume

barely

this

in

what

soon

lific producer

J. M. O.

man,

Given an
opportunity to ap¬
praise the changed situation, the

portions
holiday.

sources

NY-l-1045

RECTOR 2-7231

strongly

and

England's
Plans for Rebuilding

have

matter

the

vestors, institutional,

individual,

Canada's

and

will

N. Y.

likely that Canada

The

To Examine

P.

replaced

it is

plus

held today.

for

-

mortgage

$113,825,000 of bonds, and 191,924 shares
of $5 preferred stock.
Hearing
by the Commission was due to be

been

Iron and the base met¬

will not be readily

als

seen

Dominion-Provincial

current

ferences

issues

dation.

But

vast

aircraft manufacturers has formed

$12,000,000
of
other
funds
would be applied to retirement
of its outstanding senior secur¬
The

can

also

has

of, these

proceeds

ities.

Nylon and synthetic
readily be produced
undeveloped coal and

rayon.

week

This

notes.

Bank and Trust

much.

NEW YORK 5,

promises to be a revolutionary de¬
parture in the Canadian form of
government. As a result of the

instalment

of

dent

,

f

first

new

to "save

it is

bonds

outstanding

sult

;

plan for

The company proposes to sell
competitive
bidding $113,-

825,000

:

a

and

rubber

—now

The Nips have certainly com]pUcated matters in the course of
finally accepting the Allies' un¬

*

SEC

the

week-end.

'

have

with

replacing,

in

under

second only to those

and preferred stocks

few dollars.

."

refinancing

run

in

enjoy the opportunity to take
a

Her unrivalled

metals.

light

wealth of forests provide a huge

first

40Exchange Place, New York 5,N.Y,
Boll System Teletypo NY

programs

Light,

which

Gkporatioti

*1,

refinancing

Minnesota

V

(

TWO WALL STREET

2,000,000 mile area of the Laurentian Shield.
Aided by almost unlimited cheap $•
unimagined degree, the ages of
hydro-electric power, Canada is
iron, steam and electricity.
in the forefront in the production

the next few months.

^Dominion Securities

INCORPORATED

no

Among the companies which
have registered with SEC for

Toronto and Montreal.

A. E. AMES & CO.

obstacle: modern technology is rapidly uncovering
fabulous riches of Canada's eighth wonder of the world—the

presents

!

CORPORATION

Street, New York 5

Bell System

It will be interesting to see

time.

MUNICIPAL

Incorporated
14 Wall

The

tures.

currency

Price 110.37 to

offering

earlier

the

pected

'{

■

no

deben¬
company was a trifle
disappointed at having to take
less than par for the 2%s at that

United States

in

Wood, Gundy & Co.

definite date has
been set, it is believed that the
company figures on the latter part
of
September.
The same two
banking groups which competed

Although

41/2%-31/4% Bonds
due November 1,

in

mature

to

due

1966.

'* >>*-\

,7

PROVINCIAL

$160,000,000 of outstanding 3*4%
debentures,

,,'

GOVERNMENT

Sold—■ Quoted

Bought

to plan a flotation of a new is¬
sue
of sufficient size to retire

MONTREAL

CANADIAN BONDS

All Issues

piece

i

This time the company is

City of

75i

■■:>.■■,■

Government

•

Provincial

•

Municipal

*

Corporate

admit

Henry

Ex¬

B.

general partnership
Whitehill to limited

Bjorkman to
and

R.

D.

partnership
Sept. 1st.

in

the

firm

as

of

THE COMMERCIAL & FINANCIAL CHRONICLE

752

| "Our Reporter
EQUIPMENT

Governments"

on

■iBy JOHN T. CHIPPENDALE, JR.
days, one of the most momentous and uncertain

The last seven

TRUST

periods since the war started, saw the Government bond market
take it all pretty much in stride. .
Price changes were minor,
aside from the marking-down of the intermediate maturities of the
.

CERTIFICATES

.

partially exempts to bring the yield, after taxes, of these bonds in
line

The

of comparable

those

maturities of

the

taxables.

.

the Government bond market will be concen¬
trating on post-war conditions, which no doubt will be perplexing
at times, due to the psychological factors involved.
Neverthe¬
less, they will be largely temporary since no change in fundamentals

on

now

on,

practically all issues.

is'indicated.

.

low money

With

--V;""'"'

:

.

.

'i;; ■;

..folio.

furnished

.

A"":'*--;

^;•

this, when we are so engrossed with day-to-day
developments,; there is a tendency to lose sight of fundamentals!
Accordingly, money market experts believe now is an opportune
time to consider certain basic factors, such as the following, since
they will have an important bearing on the post-war markets.

request.

.

.

Semi-Annual
Valuation and

.

Monthly or Special
Appraisal

ities

.

experience and fadGk
at your disposal.

.

STROUD & COUPAfiYi

.

INCORPORATED

.

NEW YORK CITY

.

.

REctor 2-6528-29

^wo private wires-

.

York

Philadelphia, New

■

.

.

.

:

New

York

on

;

of

that

if the budget is to be balanced, and

date

to

the

"Times," from which

of State has
always traditionally done every¬
thing in its power to promote the
coun¬

tries of the Western
to

the

considerable period.

a

rate will be

United

announcement.

Hemisphere
States," said the
"However,
the

United States Government is

concerns

engaged in the task of reconversion,

a

.....

.

.

...

.

.

now

be

considerable

a

.

.

.

.

Localities

places

precedented burden

portation system."

on

'

an

un¬

the trans¬

that

have

large farm savings built
durable

consumers

On the other

posits.
to

.

.

:

no

.

goods

and

consumers

doubt witness

war

increase,

„

hand,

during the

up

war

materials

for

goods localities
an

period
home

repairs;

well

as

as

inflow of deposits.

will be marked by a criss-cross

.

.

.

.

the financial

J Thus,

.

the

movement of de¬

Since the total volume of bank deposits will continue
however,

it

is

not

likely

that

individual

banks

statement

will

(4) CURRENCY IN CIRCULATION, GOLD AND RESERVES

said,
and
postpone
trips to the United States unless
the.

directly connected with

war.

importance but public debts
were not as important
private securities. This was an

era

of business expansion marked

by rising profits and the growth
private securities. The depres¬
sion of 1929 and succeeding years
of

in

debts
both

magnitude and relative impor¬

tance.

■'

The

in private debts
both for good and ill for
Individuals, having

decrease

augurs

the

future.

paid

off

having substantially

or

their debts, will be in a

reduced

Low Rates

of the debt

on

Government

Borrowings
The Government,

the domi¬
market, has

as

nant borrower in the

owned were public tended to secure for itself many
Gradually, therefore, pub¬ of the gains of a preferred cus¬
lic security issues have come to tomer.
It has naturally wanted
dominate the market for debt in¬ to borrow at the lowest possible
struments.
The details respecting rates, but the easy-money policy
these trends are shown in Table sponsored at the outset of the de¬
VI.
pression was more to stimulate
Some of this recent dominance the revival of private business
is due to the fact that, during and
increased
expenditures for
World War II, the Federal Gov¬ capital outlays than to lower rates
ernment took over the financing on Government loans.
The bene¬

as

sharp

a

decline

as

is generally expected.

The return flow of currency from

.

.

construction,

former

spent for

are

witness

were

pressures. Meanwhile, public
have continued to increase

whole

a

and

benefited

The citizens of other countries
should realize the situation, the

they

was

tive

operation of

section of the

one

.

end of the

This

deposits from

materially from the war effort
and where the banks witnessed a much greater increase in the
Volume of deposits than the country as a whole, will probably lose
.
.
Rural areas are expected to lose deposits as the
deposits.

treatre to the Pacific

area.

in

shift

country to another.

centers will

task

debt

issues.

-.
Since it is unlikely that the Treas¬
will be able to pay off these obligations out of current revenues,
the commercial banks will be called upon to absorb securities pre¬
viously held by these concerns.
The same method will be used
to redeem some of the War Savings Bonds,
The return of
currency from circulation as well as the inflow of gold, will further
contribute to the rise in deposits.

engaged in - a gigantic military
operation in deploying forces and
supplies
from
the
European
tremendous

Federal

state-local issues in¬
creased both in amount and rela¬

ties and almost 60%

...

.

by them will be redeemed.

to

other

the

redeemed,

public were Government is¬
By 1943 about 54% of the
obligations were Federal securi¬

While the total volume of deposits will rise,#there is bound

of citizens of

During the decade of the

as

sues.

ury

'The Department

travel

1920's

in durable goods and controls
consumer credits adopted in
the interest of easing inflationary
ages

over

the

a

considerable, portion of the short-term Government obligations held

quote:

we

for

us

With business

': *

unessential
the United
States was ordered by the Gov¬
ernment on Aug 8 through the
State Department, said Washing¬
advices

amount.

in their aggregate

accounts and short-term pri¬
obligations, reflect both short¬

open

.

(3) BANK DEPOSITS

travel by foreigners to

ton

of 26%

crease

in

debts,

instalment

in

creases

vate

instruments

Unessential Travel by

Discouragement

The

private

.

bound to be high and indications are that the 40%

•

of

.

moderate reduction is to be made in the public debt, taxes are

with

Foreigners to U. S.
Discouraged

importance

debt obligations in 1919 was less
than in 1916, in spite of an in¬

.

On the other hand,

Teletype—PHLA 296 & 297

>

By December, 1919 the
Federal debt was $25,600,000,000

for the purchase
The greater incomes
of railways have likewise enabled
these companies to reduce their
long-term debts. Finally, the de¬

.

.

PHILADELPHIA

Pennypacker 7330

"

investment

.

.

'

the

.

that is the trend of money rates, which
huge public debt, the large debt service

.

in

position to contract new obliga¬
and the fact that a considerable part of the Federal debt consists
decreased both the value and rela¬ tions when desired goods again
of short-term, and demand obligations will have an important bear¬
tive importance of private debt are available on the iparket, or
ing on interest rates. . . . So long as the Treasury will be borrowing
instruments
and
brought
out when materials are obtainable for
new funds and will be refunding maturing obligations, which will
clearly the relative superiority to the construction of new homes, or
be for a long time yet, it will maintain current low money rates. .
the investor of the more nearly when they desire to acquire other
Furthermore, the fact that a large portion of the public debt
riskless obligations of our political real estate.
New debts added to
is held by financial institutions makes it politically inadvisable
units.
present savings may help main¬
to raise interest rates and thus further increase the interest
The recovery-relief programs of tain the level of post-war employ¬
burden of the country.
The adverse effect which rising
the
1930
decade, financed pri¬ ment;
Likewise, new debts may
interest rates would have on prices of long-term Government
marily by public borrowings, again add fuel to post-war inflationary
bonds held in substantia] amounts by small ^and medium-sized
increased the magnitude and rela¬ tendencies, depending upon condi¬
banks, is another reason why the monetary authorities will not
tive importance of public debt in¬ tions prevalent at the time.
The
permit any material upward revision in interest rates. V
struments in the security market. personal advantage of being out
The decline in private business, of debt can not be questioned. The
(2) TAXATION
which adversely affected interest fact that potentialities exist for
With the public debt as huge as it is today, it would be exceed¬
payments and the security behind inflation must be balanced against
ingly dangerous for the United States to continue to operate with private debts, also increased the the
advantage of a backlog to help
a large deficit in the post-war period.
One of the first tasks
appraisal of public securities on provide future employment via
of the Government will be to balance the budget and to devise ways
the part of investors.
an
increased demand for goods.
and means of gradually reducing the debt.
This is imperative
In any case, during the post-war
because it is impossible to say when another emergency may arise,
Government Issues Now Dominate
period we must protect the nation
Investment Market
and a constant increase in the public debt not only leads to in¬
from losses due to speculation and
creasingly higher taxes, but also has an adverse effect on the pur¬
With the advent of World War inflation. Both will tend to retard
chasing power of the currency.
To be sure, taxes will be II public securities came to domi¬ and shorten the duration of the
reduced from the war level.
This will probably mean the elimina¬
nate the investment market.
By real gains from the return to a
tion of the excess profits taxes as soon as feasible to help stimulate 1942
approximately 50% of the civilian peacetime economy.
business activity.
'
■
.
i
debt instruments in the hands of

December 31.

Our

.

securities

market.

as

to be no doubt, and
will continue low.
The

ing by war plant workers have
tended to increase the volume of
of dwellings.

as

appears

and

Re-

urban mortgages

Although some concern is expressed over the policies of the
new Secretary of the Treasury, there is one thing on which there

Complete dollar appraisal
issued each June 30

Owner's Loan Corporation.3

cently improvements in urban in¬
comes and the demands for hous¬

lie

(1) MONEY RATES

Appraisal

rep-

92% of the debt in-

pansion
of
the
national
debt
greatly increased the role of pub

relative

At times like

upon

over

standing debt instruments.

advice still holds that advantage should be taken of price reces¬
sions to build up positions in issues that fit into one's port-

Weekly List

resented

struments in the hands of the pub¬
lic.
During World War I the ex

and accounted for 22% of the out¬

dominating market factor, the

rates the

(Continued from first page)
stock-ownership cerxmcaies,

.

...

.

Gladly

.

anticipated early change in excess profits taxes is responsible
Prom

bids

firm

with

for this.

Offerings Wanted
Immediate

Thursday, August 16, 1945

circulation and the inflow of

gold that will eventually take place will create excess reserves.

.

.

.

well

as

the

plants. In
had been

capital
supplied for these undertakings
through private investments and
bank loans.
During the present
war they were covered by exten¬
sions of the public credit, a fact
which helped somewhat (though
not noticeably) to cut down the
years

cost of war.

fits of reduced interest extended
to

many

debtor

borrowers,

was

but

at banks, did not immediately de¬
cline.
Nor were interest rates on

of the longer-term loans vol¬
untarily reduced prior to matur¬
ity, even though market rates had

many

significantly; It

realized

that

portance of the public and Fed¬
eral debt has been the fact that
since; 1929 or 1930 other types of

among

sisted depression declines.

debt Have tended to decline.

able to interest reduction

The

collapse of the real estate market

late, 1920'? and the ensuing

agricultural depression tended to
bring about a decline in the out¬
standing amount of farm and real
estate, mortgages.1
During the
war. as a means

of easing pressure
for goods, indi¬

Many

rates, such as those on consumer
credit and other customer loans

declined

Another force oper¬

every

not benefited.

ating to increase the relative im¬

in the

.

as

many war

over,

was soon

interest rates

were

the sticky prices which

re¬

More¬

the business revival trace¬

disappointed

most

of

the

per

se

advo¬

cates of that trade-revival

theory.
interest
rates' were,
a boon to United States
taxpayers.
In 1920, the interestbearing debt was about $24,000,Declining
however,

000,000 while interest cost $1,020,-'
000,000; in 1940, the interest on
reserves will be greatly decreased and may even be reversed.
viduals were urged to pay their the public debt required an ex¬
The excess reserves resulting from the return flow of currency and debts, while the creditors; in turn, penditure
Clayton Quaw Is With
of $1,040,000,000 per
were solicited for
subscriptions to annum but the principal sum of
gold will be invested by the banks in bills and certificates.
Rruns, Nordeman & Co.war bonds.
The improved income the
interest-bearing debt was
The time would then be right for the
Treasury to finance the deficit status of the farmer also led to the
Bruns, Nordeman & Co., 323
$42,376,000,000.4 The average com¬
through the offering of certificates.
The large exceSs reserve reduction of farm mortgages. From puted rate of interest declined
Broadway, New York City, mem¬
1940 to 1944 farm mortgages
bers New York Stock Exchange, balances created through a return flow of currency from circulation
de-j from 4.225% in 1920 to 2,583% in
clined
a 1 most
$1,000,000,000.2 1940.3 At the end of March, 1945,
and the increase in the monetary gold stock, will create a favorable
announce that Clayton D. Quaw
Urban real estate mortgages de¬ the computed annual rate of in¬
has become associated with them market for short-term Government obligations.
clined during the 1930 depression terest on United
States.securities,
Under such circumstances, a material increase in the floating
in their stock and cotton depart¬
direct and guaranteed, stood at
due
to
foreclosures
and
price
debt and the creation of an artificial shortage of medium-term
1.925%.6
During the same period
ment.
Mr. Quaw was formerly
changes and the declines would
obligations would no doubt be welcomed by many large banks,
long-term interest
rates
with Auerbach, Pollak & Richard¬
have been more severe except for other
particularly those witnessing a rapid increase in deposits as well
son and in the past was a
the refinancing of home mortgages have tended to declined No small
partner
as those losing deposits.;: :
•
in Quaw & Foley.
over the country by
the Home
.




The need for open market

operations by "Federal" to create excess
.

.

.

.

,

.

.

.

.

..

.

.

on

the

markets

Volume 162
'

'

*

•

;

•

:

•

TABLE VI

■'//''
Federal fState
Govern-

inent and

and

"

■■

Local

Farm

Mort¬
gage
$8.5

3.S16J*' $74.7

$4.6

$1.2"

$5.8

$68.9

Term

9.4

28.4

$5.8

$29.1

$43.4

6.5

\

$25.5

12.2

7.3

4.9

73.9

45.5

29.6 "i

1918__

104.3

26.1

20.9

5.2

78.2

47.0

30.2

7.1 \

9.7

31.2

191S__

117.5

31.0

25.6

5.4

86.5

49.7

31.0

8.4

10.3

36.8

1920._

124.3

29.9

..23.8

6.1

94.4

54.8

32.6

10.2

12.0

39.6

10.7

13.0

37.5

14.3

38,5

86.1

asi7__

•

:

29.8

23.0

6.8

95.0

57.5

33.8

128.5

30.6

22.7

8.0

97.9

59.4

34.3

10.8

1923..

134.3

30.2

8.5

104.1

63.4

36.2

10.7

16.5

140.1

30.1

20.8

9.4

110.0

67.1

38.4

9.9

18.8

148.4

20.0

10.4

118.0

70.8

39.6

9.7

21.5

with educational efforts

1925..

21.7

,

V

'

IS26..

154.2

29.9

18.8

11.1

124.3

75.6

41.7

9.7

24.2

1927..

29.7

17.7

12.0

132.0

81.2

44.3

9.8

27.1

169.5

29.7

16.9

12.8

139.8

85.8

46.0

9.8

30.0

173.4

29.4

15.7

13.7

144.0

88.5

47.3

9.6

31.6

rates.

money

Others

"

^ ■;

:;

55.5

,

CHART I

directec

174.0

30.1

15.4

14.7

143.9

93.1

51.0

9.4

166.7

33.0

17.1

15'. 9

133.7

91.2

50.2

9.1

31.9

1932—

157.4

35.5

18.7

16.8

121.9

87.4

48.9

8.5

1933—

151.3

37.8

21.0

16.8

113.4

82.5

of

Banks,

Member

Federal Reserve Chart Book, June

7.7

debt, the maturity dates will
only signal the renewal of obli¬
gations for the banking and finan¬

loans

cial system as a whole.
- ;

This

7.6

26.7

Government

14, 1940, page 13.

23.1

15.9

112.0

152.5

41.9

26.0

15.9

110.6

76.8

43.5

7.4

25.9

29.5

16.0

110.5

74.6

41.9

7.2

25.5

36.0

r,

1937—

159.5

47.1

31.3

15.8

112.4

75.9

43.5

7.0

25.4

158.0

48.3

32.6

15.7

109.7

77.2

44.8

6.8

25.6

u:

1

32.5

1939—

161.4

50.8

34.8

16.0

110.7

76.8

6.6

26.1

33.8

194C—

166.5

52.9

36.7

16.2

113.5

77.3

44.0

6.5

26.8

36.2

3S41__

183.5

64.0

47.6

16.3

119.5

78.0

43.7

6.5

27.8

41.5

1S42-.

223.3

109.2

93.4

15.8

114.1

77.7

43.3

6.1

< 1943—

273.5

161.8

147.0

14.8

111.7

75.9

42.6

5.6

44.2
'

28.3

.'r

the
In

stra

ve

e

W

(its

r
V

36.4

27.6

,

35.8

/

rounding.
tThe shorttotal and not net debt,
§Data ai*e for noncorporate borrowers only.

"Components will not necessarily add to totals because of
debts of noncorporate borrowers represent

term and mortgage

t Figures

of each year.

for June 30

are

Slater, loc. cit., p. 16.

Source:

Net Public

♦Outstanding

\

1916-43

End

Year

Debt,

tPrivate

Public

and

Real

and

Local

Estate

Total

Total

'V:,

Mort-

Mort-

Short-

gage

gage

Term

Total Corporate

Total

ment

Agency

1.6%

7.8%

100.0%

7.8%

11.3%

34.4

7.6

28.9

6.9

10.9
9.3

.26.4

7.2

33.1
29.9
31.4

1917—

100.0

14.2

8.5

5.7

85,8

52.9

100.0

25.1

20.1

5.0

74.9

45.1

1919—

100.0

26.4

21.8

4.6

73.6

42.3

1920—

100.0

24.1

1921—

100.0

23.9

13.4

4.9
5.5

i

1522—

100.0

23.8

17.7

e.2

v;

16.2

6.3

-

8.8

6.1

16.7

8.2

.76.2

27.1
26.7

77.5

47.2

78.5

47.9

8.6
8.4
7.9
7.1

7.0

27.0

1923—

100.0

22.5

1924—

100.0

21.5

14.8

1925—

100.0

20.5

13.5

79.5

47.7

26.7

1526—

100.0

19.4

12.2

;

7.2

80.6

49.0

27.0

1827—

100.0

18.4

10.9

i,:' 7.4

81.6

50.2

27.4

i

27.4
.

/,•

1928—

100.0

17.5

10.0

7.5

82.5

50.7

27.1

100.0

17.0

9.1

7.9

83.0

51.0

27.3

1930_!_

100.0

17.3

8.8

8.5

82.7

29.3

1931—

100.0

19.8

10.3

9.5

80.2

54.7

30.1

5.4
5.5

1932—

100.0

22.6

11.9

J0.7

77.4

55.5

31.1

5.4

1933—

100.0

25.0

13.9

11.1

75.0

54.6

31.4

15.3

10.5

74.2

52.3 &

29.6

5.1
5.0

53.5

:

'
:

1?34__

100.0

25.8

1935—i

100.0

27.5

17.0

10.4

72.5

50.4

C'V. 28.5

1936—

100.0

29.2

18.9-

10.3

70.8

47.8

26.9

1937—

100.0

29.5

47.6

27.3
28.3

„

'

9.9

70.5

3538—

100.0

30.6

2C.6

9.9

69.4

48.8

100.0

31.5

21.6

9.9

68.5

47.6

194oII

100.0

31.8

22.1

9.7

68.2

46.5

1941—

100.0

34.9

26.0

8.9

1542—

100.0

49.1

42.0

7.1

50.9

34.6

19.1

2.7

3943—

100.0

59.2

53.8

5.4

40.8

27.6

15.5

2.1

19.6

65.1

27.4
26.4
23.8

...

42.5

are

controls

Wartime

of

materials

essential to the production of mu¬

have
tended to limit the need for

nitions and other war goods
also

private capital. Allocations, pri¬
orities, consumer-credit controls,
higher taxes, payroll deductions
for
bond
purchases, and other
measures have tended to limit the

availa¬

demand for, as well as the

61%

already been de¬

companies holding over
of the outstanding Govern¬

securities, will these instil
tutions be able to supply the needs
future

banks tended to restrict loans and
to increase

bility of, civilian goods. Although

bank

war-production requirements
extensively supplied by Gov¬

times

especially during depres¬
sions, banks were criticized for
their
perversity.
When society
needed a greater volume of credit,

past,

private capital was not rationed,
the need for it was limited, and
were

In

borrowers?

(!

1930

During the
volume of

liquidity.
the

depression

decreased

loans

and

between

1936; meanwhile

investments

in United

curities

to

rose

bank

States

Congress.9

vVar Plants Corpora¬

more

capital to extend its
Other Government

agencies are also in position to
supply many credit needs. Indi¬
vidual

se¬

approximately the

and the ability

7

sion

situation

now

is

existing

favorable for credit expan¬
than

existing after

that

the

during the late
depression. The banks are in a
tar more liquid position now than
In those periods. Their assets are
n a far stronger position than ever
before.
The liquidation of slow
last

and

war,

even

or

loans

doubtful

left

in

is the

knowledge, as

common

the

matter

wake of the last boom is a
Df

weeding out of weak banks.10
Treasury policies in financing this
war
have strengthened the posi¬
tion of the nation's banks. Com¬
mercial banks have been

urged to

buy short-term issues, and the
long-term securities eligible for
purchase have been limited to
maturities of not to exceed
10

well as same level as loans had been, as
is shown in Chart I.
This was the
the supply of private-debt financ¬
ing was effectively reduced. These period of reflationary .soending years.11 Even as a result of the
and of loans and advances by gov¬ expansion of war-time credits the
policies, as well as the growth in
Thus the liquid
position
of
commercial
the public debt, have made the ernment to business.
ernment, the demand as

market pre¬
dominantly a market for "govern¬
ments."
So long, too, as the na¬
interested

is

tion

the cost of

minimizing

in

carrying its debt, pres¬

keep interest rates low
expected.
Likewise, the
substantial increases in
savings
to

sures
can

be

during recent

years

will contrib¬

ute to this end.
Debt

Increases

of

,

and

the

Supply

Capital

Suppose the Federal debt con¬
to grow during the post¬

tinues
war

years—how will that affect
of capital available to

the simply

banks

financed

the

Government,

while the Government made loans
to business.

If,

as

a

.

result of the

from
depression, banks

the

carry-overs

are

and

war

preceding

filled with

government securities, many peo¬
ple wonder whether banks can be
expected to discharge their risktaking functions in the post-war
years, or whether this important
task must be assumed bv govern¬
ment

agencies.
that

membered
agencies

private
but

It

were

should

some

of

be

re¬

these

created, not because

credit was not available,

because

the

interest

rates

other borrowers?

growth in the national debt
has been accompanied by the con¬
centration of security ownership
in financial
All

footnotes

institutions, primarily
at end of

rowers.

technically at least, their
positions and their ability

ing,

accommodate borrowers—even

to

old

article.




charged were too high or had not
come

dov/n

sufficiently during the

depression. The tradition of a 6%
interest rate in the face of lower
rates

in

the

market

helped

to

other

or

se¬

(now mainly certificates
indebtedness) to adjust their

positions,

to meet needs

or

held

banks

within

callable

or

with the Fed"
In the four
weeks after April 25, 1945, such
borrowings
from
the
Reserve
banks
increased
$216,000,000 to
establish a new 12-year record.
During the last week in May,
member-bank
borrowings were
enlarged $162,000,000 to an aggre¬

year,

one

total of $57,836,000,000 of
such securities outstanding.12 Al¬
a

of the Government is¬

26%

most

in

held by such banks were

sues

and certificates of

Treasury bills

all due within one
21% were in notes, the long¬
est of which were due in 5 years;

gate of $886,000,000—another rec¬

indebtedness,
year;

holdings

their bond

of

42%

ord. Table VIII shows the
trend

S.

U.

in

advances

held

Insurance
$1,601,000,000 of

TABLE

and

Discounts

Banks

Non-bank borrow¬
exclusive
of
Government
agencies and the Federal Reserve
System, held over $10,670,000,000

March

issues due within one

institutions

individual

as

a

otherwise

Government Securities

bv

■

$175,850

33,700

320,776

62,715

12,721

__

244,754

13,163

118,338

489,050

30,718

236,627

1885,534

4,990

_,

12,680

15,860

37,079

r_.

58,789

95,349

September

11,810

49,355

25,545

345,336

51,500

473,213

5,255

79,825

August

so

October

______

November

December
Aver,

__

_____

outstg.

at

end of month

whole only

fully

1945

$21,717

July

individual borrowers, but for the
financial system

Dollars)
1944

June

portfolios and loans as
enable them to meet needs of

to

of

1943

April
May

to readjust

Compiled

$21,647 $130,495

from

the

*$419,193

"Federal

♦Average for 5 months.

tMay
Reserve

30,

1945.

Bank

of

Secured

(Continued

invested,

:■

from

on
•

•

page

754)

•

.■

Commercial

Banks,

Insurance

Feb.

Companies

28,

and

-

guaranteed
Treasury bills
or

—

—__________

__

securities

Treasury bonds—total

tOtber Nou-

Insurance

Fank Owners

______—

%..

Amount

%

Amount

100.0

$72,543

100.0

$8,476

•

%

Amount

Amount

100.0

100.0

%

$38,168

%

$19,239

.

100.0

1,164

3.1

'

'

•

7

' V'Liw—i-'-

10.0

3,387

4.7

30,3%

18.6

15,259

21.C

203

2.1

429

2.2

9.509

24.9

23,039
7%

14.1

21.4

330

3.9

662

3.4

4,8%

12.8

.5

586

.8

4

92,349

:

Certificates of indebtedness

-

.

Mutual

commercial.
v

Typesr

Holders by

Other Non-Bank

1945

Banks

Amount
$163,166

Federal

Chicago.

TABLE Vli

Security and Maturity:

-Total-

Tyoe of Security—

Reserve

Bulletin."

(Amounts in Mil'ions of Dollars)

Tctal outstanding securities,

and

Federal

15,557

i

February

and $17,400,000,000 due with¬
in five years.
The holdings of
these institutions are shown in
Table. VII.
These maturities will

Member

All

1943-45

$13,858

End of Month:
January

year

enable

Thousands

(In

ers,

tor

by

Banks:

Reserve

in five years.

VIII

Advances

Non-Member

United States securities due with¬

of Federal

upward

discounts

and

ma¬

tured within 10 years.

companies

securities

the

on

has begun to increase.

$25,702,-

000,000 of United States securities,
due

interest

of

tice of "discounting

As of February 28, 1945,

ones.

commercial

oi

Guaranteed

is

whereas, if advances are
by the Reserve banks/ in¬
terest is merely reduced by the
rates
charged.15
Recently, 1 and
particularly as the banks have in¬
vested larger and larger sums in
Government securities, the prac¬

credit

o

Treasury notes

on

result

made

as
time moves on,
portions of their se¬
curities will mature, thus improv¬

•P;;.P'PV

Issued

in¬

sold;

Moreover,

were

of

bills

Treasury

loss
1940

1938

they should be the repayment of maturing issues
the
proceeds of taxation
able to meet, without difficulty, with
make
possible a corre¬
the
credit requirements of both would
the Government and private bor¬ sponding increase in loans if they

Ownership

many
an

curities

years,

56.6

37.737

52.0

7,%1

16,399

15,560

6.6

172

■'

■

4^ Jl. ■

>

'

_L__

16

.1

1%

.5

9.3.6

18.182

94.3

22.311

58.5

2.0

510

26

1.856

4.9

7,824

4.8

4.770

Maturity in 5-10 years____„__

44,645

27.4

25.507

35.2

3.743

44.2

23.2

P.669

5.466

7.5

1.P29

21.6

2.607

3.538

9.3

14,445

8.9

13.5

Maturity in 1.0-20 years_,

1,991

2.7

2,187

25.8

10,600

55.0

7,349

19.3

25,433

15.6

Maturity within

The

In the

improved.

banks has been

post-war

The

statements.

sold

P.

.

investment-security

even now
loath to show

that most banks have bought and

,

substantial

out of

\

war.

The

to

of commercial risks after

care

more

indicate

likewise

bankers

willingness

a

take

and

are

the

during

debtedness to the central bank
their

1936

1934

before

now

loan activities.

ment

of

is

and

ers

With the banks and in¬

scribed^

late

as

has

1932

has asked for enlarged pow¬

tion

companies.

insurance

and

trend

If

Their

control.

waned

of borrowers. This course involves

The Smaller

surance

of short-term paper.

use

banks

bankers

!

1930

the

This

'

reserve

which

Government

by

other eligible paper,
at rates of from

or

effectiveness

$

oar

''vS.VVv.k'

Slater, loc. cit., p.

part of the interest savings for
carrying the public . debt have
come, however, from the increased

secured

ad¬

The

be obtained

depression
t

the

from

advances

strument of credit

\

in¬

paper.

then from dis¬

way,

and

Reserve Banks.

of

§Data are for noncorporate borrowers only.

for .June 30 of each year.
16.

•

y"" V:

P

•

♦Components will not necessarily add to totals because of rounding.
tThe shortmortgage debts of noncorporate borrowers represent total and not net debt.

Source:

■

"V

term and

^Figures

/■ /

\.|

18.2
18.8
19.1
: 19.0
18.1
17.7
17.0
16.3
15.9

4.9
4.6
4.4
4.3
4.1
3.9
3.5

"»CgQ

30.0
30.0
30.3
30.6
31.8
31.6

31.8
32.0
29.2
;; 25.5
21.9
20.4
21.9
22.2
.23.0
22.8
-U16.2'*
20.6
16.2
20.9
; 16,1 •
21,7
:'':"'T5.1
22.6
12.7
16.4
10.1
13.1

5.5

short-term

curity offered.14 In earlier times,
when "discounting at the Fed"
was
a
customary banking prac¬
tice, these rates were manipulated
by the Reserve System as an in¬

17.7

5.8

1929-_

i

be util¬

may

through

one-half to D/2%, depending upon
the maturity and the type of se¬

,

J

31.4

26.2

46.1
46.2

75.9
7G.1

re¬

action.**

by member banks if

met

other

no

can

/Vi-

31.9

6.5
6.3

9.6
10.4
11.1
12.3
13.4
14.5.
15.7

44.1

6.7

19.2

v

:

been

vances,

v
h

34.1%

1918—

in

securities

\

39.0%

be

can

.

58.1%

92.2%

6.2%

of

use

counts

V

Percentages of Total Net Debt
1916—

J p
V

\

•

Farm

Federal Govern-

Private,
Year

§Urban

tState

Federal
Government and

•

Public:

IM

r

Long-Term

•—

re¬

Should this be done the post-war
credit needs of private borrowers

y

1

•

:':

reserves

perhaps

war,

creased

J

1

(Continued)

Private

and

just

by Congressional

Federal

(

TABLE VI

have

ized in the continued financing of

36.4

1938—

the

The

•

33.8

45.5

39.0

only

of

needs

be met.

can

banks

serve

duced

156.0

.

that

mean

requirements of Federal Re¬

serve

These added

1936_.

151.0

not

33.0

1935—

1934—

does

the future financial

30.9

27.4

44.7

•

expand

the

1929-1940

34.5

30.0

47.5

79.0

to

years

should continue to

ment

(In Billions of Dollars)
Source:

For/some

refunding seems to bo a
probable policy than repay¬

ment, and if the Federal Govern¬

42.5

1930..
1931—

Investmtents

it.

wanted

50.8

32.6

and

Loans

maturing is¬

new

come,

pools along

guaranteed

/V

.

in

If the Gov¬

more

of the Federal Re¬

for

rangement

not con¬

are

securities

other

secure

lenders would have to
provide the cash for those who

System has proposed an ar¬

serve

sell

did not

reserves,

ernment refunded its

profession. The Board

Governors

of

insur¬

as

54.0

1929—

at their own

excess

cash.

sues,

that credit is abundant by

see

the creation of credit

be

for the continuance of easy-

ance

50.8

1928..

to

no

order to

cally able to employ it. The bank¬
ers, on their part, have proposed

Government

competition they regard

48.7

161.7

of

threat

47.2

1922..

;

not continue to

may

The

low.

42.9

30.4

124.8

of

the rates are com¬

at market rates to those economi¬

40.7

1S24-.

1S21__

banks

as

charges

Short-

gage

Total Corporate

Total

If credit is freely avail¬
reasonable terms, Govern¬

on

advances from the Reserve

long

petitively determined in the mar¬
ket. What they regard as essential
is that capital should be available

debtors were con¬

as

had

secure

so

ment-sponsored loans may not be
needed in the post-war period,
but if Government agencies are
not equipped to make loans there
are
many who fear that interest

Estate

Mort¬

-

xnent

Agency

able
Real

r

far

so

cerned.

—-Long-Term«:•

Federal Govern-

Total

Total

sults

'■/

*'*

cerned about the level of interest
rates

bring on "Government competi¬
tion," with generally salutary re¬

';

End, 1916-43

■

and

Private,
Year

■' •/

'

———tPrivate-—-

"•—

—Public—-

Public

''

Year

Amounts in billicns of dollars

:

,

——

:/;

...

Private Debt,

Net Public and

:

753

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4412

♦Outstanding

Nfttiwtrm #&&.

V

■

5 years~_,_

Maturity after 20 years______,

Data taken from "Federal Reserve
Due to

Bulletin,"

Mav.

1945,

'

p.

banks.

These

must be

added

to four

groups

25.1

462.

rounding of original figures percentages will not necessarilv add up to totals.
sto"k savings b°nks.
t.Does not include securitms owned bv U. S. Government

♦Includes

Reserve

4 467

shown above to

•

'

•

'

agencies or trust funds, cr Federal

equal amounts shown in "Total' column.

THE COMMERCIAL & FINANCIAL CHRONICLE

754

ed

(Continued from page 753)
by the'Reserve banks since Janu¬
1943. With the more general
use of this' policy there fcan be no
question as to the ability of the
banking system to meet post-war
credit needs.

Indeed, many econo¬
fear the possibility of in-

mists

Ration from

;

over-expanded post¬
The availability of

credits;

war

advances to member banks by

Reserve banks is

one

of the

the

con¬

tions to prefer investments in Gov¬
ernment securities to loans involv¬

normal business risks. In 1944,
72% of the total loans and
investments
of
member banks
were in United States obligations.
The upward trend began during
World War I and was accelerated
ing

pver

by the deficits of the depression,
is shown in Table IX,
The
United States securities owned by
member banks on December 31,

as

that situa¬
tion. The volume of possible ad¬
vances
grows as investments in

more

Government

and investments on

tributing

in

dangers

obligations increase.

This factor in any post-war infla¬
tion can be controlled by the Re¬
serve

System.

The possibility and

control of inflation after the war

is, however, reserved for discus¬

$68,000,000,000—was

1944—about

loans
June 30, 1943,

than all member-bank

are
twice as
total loans and invest¬

holdings

Present

great as

ments in 1929.

The banks have reached a posi¬

their
sion on another occasion.
earnings are now coming from
interest and dividends on securi¬
Will Credit Be Supplied?
ties, composed predominantly of
The adequacy of the credit re¬ Federal obligations/In 1944, mem¬
sources
in the banking
system ber-bank earnings were $1,874,does not necessarily mean that
000,000 while interest and divi¬
The concen¬

loans will be made.
tration of the

practically riskless
Government ' securities
in
the
banks" may cause these institu¬

where

tion

dends

over

half

securities

on

of

$960,-

were

000,000—almost twice as much as
had ever been received from this

Depar¬ gotiable series on the open mar¬
borrowing ket. Thus,; the larger debts become,
folkways, of course, create other the more remote the probabilities
problems, and this is not the place of repayment. These difficulties
to discuss them. Nevertheless, the are augmented,
too, by fiscal poli¬
growth in the size of the public cies which seek to utilize tax re¬
debt, the concentration of debt duction as
a
stimulus
to
full
ownership in banks and financial employment. :v,;.v
■
institutions, and the overshadow¬
Frequently, to satisfy the de¬
ing importance of interest pay¬ mand for debt redemption, sink¬
ments in the earnings of these in¬ ing
funds operative over long
stitutions all add momentum. to
periods of, say, 50 or 100 years,
movements seeking further to re¬ are proposed. The payments thus
duce interest costs on the rela¬ made are mere, token payments
and the debt treduction
tively riskless national debt.
accom¬
current

,

.•

If, in the post-war period, banks plished is purely nominal. In the
prefer to collect interest on Gov¬ history of nations such long-term
ernment obligations rather than Calculations have usually been up¬
to assume their normal functions set. Wars have occurred, depres¬
of undertaking commercial risks, sions haye intervened, emergen¬
they can be assured that others cies ; have arisen or new. expendi¬
will sponsor legislation and man¬ ture programs have been adopted
with
the result that budgetary
agement techniques to reduce in¬
terest on bank loans to the Gov¬ surpluses, without wh(icb debt re¬
ernment, or that they will cham¬ duction can not be accomplished,
pion the establishment of new have; been replaced by deficits.

antees, again minimizing the riskfunction of commercial

Ratio of

taking
banks.

conservatism in

The

oiiigrown.
These; forces have,
pbrhaps, changed the psychology
the

character of commercial
banking, making, it less of a risktaking enterprise than it was a

or

half century ago.

Many

V

bankers,

of

Interest
Bank

ex¬

tending loans, carried over from
the depression, has hot been fully

course,

are

of any such changes, and

Dollars)

Earn-

ings

Interest

& Divi-& Div. on

dends
on

Securs. to

Se- Total Bank Securs. to

Total curities Earnings

Year
1919.

Ratio of
Interest
& Dividends on

Securities

credit

institutions, Governmentowned or otherwise, to perform
the neglected risk-taking functions
needed by a dynamic industrial
society. It is certain, too, that the

The outcome has been that debts
have increased rather than de¬

creased, and sinking-fund appro¬
priations have only increased ag¬
gregate borrowings during such
banks must continue to finance .times,. The "fair weather policy"
the Government by holding its of small sinking funds, or long
debt instruments far into the fu¬ periods for amortization, will not
retire significant portions of large
ture.
Payments for this service
will be forthcoming but probably
at rates which recognize the rela¬

debts.

If the United States is to

retire a substantial part of its post¬

debt, a more determined pol¬
icy will be required.
war

Government
Relation

Obligations
to

Total

Their

and

Loans

and

Investments

i

{

(Amounts in Millions of Dollars)

,

■'■

'-i:

;r

<

Ratio

■■■

of u.s.

v-

■

Gall Date

Total

Nearest

Investm'ts

Obligations
U. S. Govt, to Total

Loans &

June 30

Obli-

Loans &

gations

*1914™

$8,498

8,764

Investm'ts

$760

1915™

749

8.9%
8.5

703

6.8

1927— 2,014

$458

22.8

1928— 2,194

22.7

4.7

2,399

473

19.7

4.7

472

21.9

4.6

480

26.1

4.1

1929—

eral

effect

34.5

3.5

38.1

3.3

variables such

474

1,207
1,271

467

38.7

r:,/" 2.8

487

38.3

2.0

1,321
1,274

481

36.4

2.6

448

35.2

2.5

458

1,554

1936™
1937—

1938—

29.5

1939—

1,296

444

34.3

1,323
1,417

431

32.6

2.1

445

31.4

1.6

1942—

1,487

540

36.3

766

46.4

960

51.2

1.5

1945—

1,065

8.5

18,507

2,465

13.3

tary

22,242

3,803

17.1

Reserve

25,559

2,811

11.0

24,121

2,561

10.6

24,182

3,205

13.2

1923™

26,507

3,835

14.5

1924™

27,167

3,575

29,518

3,780

12.8

1926™

31,184

3,745

12.0

1927™

32,756'

3,796

11.6

1928™

35,061

4,225

12.0

Banking

and

Mone¬

1943, pp. 262-65; Federal
Bulletin, May, 1945, p. 431.

Statistics,

prior to 1927.

available separately

fNot

and

from

taken

Data

as

the amount of Federal debt

increases, bringing about a growth
in bank ownership of such securi¬

contribution of Federal
interest payments to bank earn¬
ings will increase. In 1944, inter¬

ties, the

1929__

35,711

4.155

11.6

1930™

35,656

4,061

11.4

1931™

33,923

5,343

15.7

1932—

28,001
24,788

5,628

20.1

dividends on securities
covered over 85% of the cost of

1933—

6,887

27.8

bank operations

1934—

27,175

9,413

34.6

1935—

28,785

11,430

39.7

1936

32,259

13,672

42.4

1937

32,739

12,689

38.8

1938

30.721

12,343

40.2

1939—

32,603
34,451
40,659
46,800

13,777

42.3

14,722
18,078

44.5

1942—

24,098

51.5

1943—:'

67,155

46,980

70.0

1944—

'

:y

1

83,587

60,339

72.2

91,569

67,685

73.9

1940—
1941—

-

C

Dec. 1944—
"December

42.7

31.

Data taken from Banking and

1943,

May,

est

Monetary

72-74; Federal Reserve Bulletin,
1945, p. 448.
pp.

in individual cases

are

giving at¬

tention to prospective credit needs,
as
well as to new opportunities

tp extend banking services. There
are some signs of a more liberal
attitude among banks

for member banks
as a group.17
It looks as though
it may not be long until interest
and dividends more than cover all

will be carried out remains to be
Been.

The tremendous increase in the
amount

of

Government




but taxes for

poorer,

to, ^predict.

depend
as

on

The
many

the form of the

interest received.

as

Con¬

sequently debt payments, and the
taxes imposed therefor, may un¬
equally affect the distribution of
income and wealth within society.
The effects on incentives to work,
save and invest produced by taxes
for debt repayment may not be
offset by countervailing effects of
debt payments themselves, and of
public expenditures, r Just what
the probable effects will be re¬
quires more data relative both to

credit.

But abundance Of loanable

funds to

middle- and lower-income groups

both public and

enterprise seems
may be the crux

private than in previous times. .Debt pay¬
assured,
Here ments, therefore, should not en¬
of post-war in¬ hance inequalities in income and

flation.

wealth
Debt Redemption

Finally, the problems and diffi¬
of redemption are aggra¬
vated by the size of the outstand¬
ing debt.
The larger it is the

culties

heavier are the amortization costs

the

extent

previously
relatively
greater progression in Federal
taxes has made for more equality

true.

in

to

Likewise,

How

distributions.

income

these

the

trends

affected

have

risk

and the taxes necessary to cover

functions in society is not so clear.
But as both the incidence of taxa¬

service

tion'and

necessarily hold for sin¬

tization increase, so do the argu¬
ments and movements to postpone

alization

redemption, in order that en¬
hanced production or larger in¬
comes
or
depreciated currency

ers,

does not

gle institutions.
tion

this situa¬

that the taxpayers

means

of

the United States

paid to member
banks approximately $884,540,000
in
interest for the creation of
credit

war.!8

primarily to
Member

finance

the

thus

re¬

banks

ceived 29.5% of the interest pay¬
ments on the national debt.19
If

this

ratio

is

applied to interest
payments made during the fiscal
year 1945, which ends on June 30,

payments, the possibility
of monetizing the debt not being
considered.

As the costs of amor¬

be utilized to minimize the
weight of payments. As amortiza¬
tion payments tend to be scaled
down or as projected periods for
may

sinking-fund operations are ex¬
tended,
where, such retirement
methods are adopted, the proba¬
bility of substantial reduction; or
even of net reductions over long'

periods of time, becomes more re¬
mote. As debts increase in size,
taxpayers tend to prefer reduc¬

tions in present taxes to repayr
during the fiscal year ment of debt, especially since in¬
ending June 30, 1941.21 * This is,
dividuals in need of cash can
indeed, a colossal sum to pay the
either
present
non-marketable
banks for manufacturing Credit

payments

paper

the earning assets of banks
may, however, cause some institu¬
among

nor

of bank operations for
banks as a whole. By way of cau¬
tion it should be added, however,
that what is true for all banks
expenses

in granting
service, at least, to
member banks will have received
the proposition that credit will be
extended to all enterprises* re¬ during that 12-month period ap¬
gardless of size, that are deserving proximately $1,106,000,000.20 This
was about equal to total interest
of credit. Whether these counsels
credit arid lip

richer

price levels, and other factors, In
interest rates in the pre¬ the distribution of taxation and
future will probably be debt
ownership in re income ar¬
low, and adequate capital will be rays and the effects of taxation, on
available for post-war uses, even the one hand, and of interest and
without
drastic
change in the principal repayments, on the
nature
of
present banking ar¬ other, than is now available. This
rangements.
Changes in future analysis is complicated by insti¬
banking ^techniques, moreover, are tutional holdings of the debt but
more likely to affect the handling
these same holdings seem to indi¬
of the public debt than private cate
greater
participation
by

and

Put in another way,

Statistics,
Board
of
Governors
of
the
Federal Reserve Svstem, Washington, D, c.,

expected to approve,
the continuance of
It is true that
payments of internal debts make
the nation .\ as; a whole neither
the years,

over

dictable

1.4

1944— 1,874

•'1925™

I

be

not

can

any case,

1.8

1943— 1,650

surren¬

debt, its negotiability, converti¬
bility, probable redemption, al¬
ternative
demands
for
capital,

2.3

1940—

1941—

1922™

'

would

3.9

426

1,244

12,453

•

is -difficult

1933— 1,237

1932—

1921™

i

being imposed in order

such arrangements.

paid incomes

would affect interest rates in gen¬

1934—

1920™

'

borrowers

are

dering current income or accumu¬
lated
savings.
Whether
such
changes, if they should transpire,

4.7

498

10,315

13.2

to be little

seems

are

to pay billions of dollars to banks
and financial institutions, citizens

for

1919—

!

There

required for debt redemp¬

non-bank

1918™

'

greater

high

as

1925™ 1,919
1926— 2.028

of the United

States

Government under powers

grant¬

for the

use

(July-1944).

1

y:',,-:;

■

United States Department of Agricul¬

2.

Economics,

Agricultural

of

Bureau

ture,

Release, July 1944.

financing amounted to about $3
loc. cit., p. 18.
Secretary of the
Treasury, 1944, pp. 529-30,' 627.
5. Ibid., p. 713.6. Bulletin of the Treasury Department, *
Such

3.

billion.

Slater,

Annual Report of the

4.

.

May 1945, p. 27.

:

:

.

Federal

Reserve
and
Business, 1940, pp. 21, 24-25; Bulletin or.
the Treasury Department, May 1945, p. 60. ."
Cf.

7.

Charts

bond

in

yields

Money Rates

Bank Credit,

on

V appear-:

See also Tables II, III and

8'.

i; Section, published in the:
Aug. 9.
Senate Bill 511, 79th' Congress, First.

in

ing

Part

of

"Chronicle"

9.

Introduced Feb.

Session.

10.

.

On

Dec. '-31,

1944

.

12, 1945.
there were .6,814:

member banks in the Federal Reserve Sys-,
tern as. compared with, 8,522 on the .same
date in

lli

of

1929.
Annual Report

Cf.

the Treasury,
12.

Federal

Secretary:

of the

1943, pp.. 5-6..
;
Bulletin; May .1945,:
..

Reserve

issues for redemption or sell neAll footnotes at end of article.

462n.y.- ;.y;
rvV'Cf. Senate Bill 510; 79th Congress,;

p,

13.
First

Feb.

Session. V Introduced

12, .1945.:

Measure signed by President Truman,.

12,

June:

1945.

14.

See: Federal

1945,

by U. 8.
15.

rates

banks

•

,

,

holds

statement

.available:

are

others secured

and

obligations.

This

Bulletin,. May:

Reserve

Higher

p. 438.
non-member

to

.

true

rates charged on advances are

as

the;rates paid
to

.'

.

so
long
less than,

the obligations offered
Cf.
rates
now
in'

on

advances.

secure

effect.

Federal Reserve Bulletin, May 1945,

p; 438.-':--;-,. -y yyy-:.:,r ;v;.
16.
Unfortunately
the
earnings
from
United States securities
available.

are not

separately

y -■■■^'■yy yy- -yv.
_;
Federal Reserve Bulletin,

Cf.

17.

y,.y

May

1945,.; pp. 429-31..; y

-r-r
yy
A-*: y
This figure' was obtained by appor¬

18.

tioning

that

manufacturing credit

1,652
1,720
1924- 1,787

1917™

••

differential in
rates paid to bank and non-bank
a

realized

1922.

1916—

•

of

1935—

Investments of All Member Banks in U. S.
.

tion

tion

is

reason

1931— 1,841

Yr-TABLE IX

by banks as compared with nonbank owners, as well as the crea¬

taxes

it

1923.

1,744

24, No. 7, pp. 16-18

v

When

why banks should be paid debt redemption seldom bear the
the same or equivalent rates for same relative relation to personal

1,804

1921.

1930— 2,158

unaware,

differentiation in securities owned

holders.

%

$1,436

1920.

"Wartime Debt
States,". Survey of i

Alvin,

Slater,

Current Business, Vol.

,

■

(Amounts in Millions of

Cf.

Changes in the United

,

spite of declining rates
tions in the aggregate to eschew of interest. The trend since 1919 tively riskless character of the
advances and the nature of their
the assumption of
other risks. is shown in Table X.16 Next year,
creation.
Likewise, the financing
During the war the V, VT and T
TABLE X
of Government must not be re¬
loans guaranteed by the Army and
^ Member Bank Earnings:
garded as competitive with private
Navy to implement war produc¬
Total and Amount From Interest and
financing, nor allowed to interfere
tion have also caused banks to
Dividends on Securities
with it.
This may bring about a
clamor for high percentage guar¬
in

source

1

that government!

from

tures

Impact of the National Debt Uj
Banks and the Capital Market
ary,

by

Thursday, August 16,, 1945

of

debt

payments

are

difficult to trace, political reper¬
cussions

may

of

arise from the re¬

the

amount

of

pay¬

ments

going to institutional own¬
regardless of the extent to
which such payments are eventu¬
ally diffused; ■
From all points

it appears

of view, there¬
that the size of

the debt and its,

ownership distri¬

fore,

bution presage increasing efforts,
in the future, to minimize the
costs of debt service and to

trol

payments

made

con¬

merely

for

to

curities

92.16%

dends

interest

United

on

the

of

States

interest

securities held were $65,455,000,000; United

States government securities were $60,324,-.

000,000, or 92.16% of total.

Earnings- from,

interest'
and
dividends: on
securities,
amounted to $959,787,000; 92.16% thereof;
was
$884,539,699.
Cf.
federal: Reserve

Bulletin, May
interest
are

1945, p. 491.

fates

other

lower

securities

Inasmuch as:
obligations,

government

on

generally

than

this

rates

method

6f

paid

slightly exaggerate United Statesinterest payments to banks.
Exact pay-:
ments by class of securities are not avail*:
able,
yy": y v.-.;
19. Total interest payment# oh the pub-:
iii; debt during calendar year 1944 were
approximately $3,001,806,000. Dally Treas¬
ury Statements.
...
.

Estimated

20.

interest

during

payments

fiscal year 1945 were $3,750,000,000.
Cf.:
Bulletin of the Treasury Department, May

1945, P. 2.;V'ySy yK':^--y

: y->y:y
Interest payments during that year;
$1,110,692,812.
Annual Report of the
Secretary of the Treasury. 1944, p. 531. • y
21.

were

May Cotton Consumption
The

Census

ington

Bureau

June 14 issued its

on

re¬

port showing cotton consumed In
the United States, cotton on hand;
active cotton

and

month of

spindles in the
' *
.

May.

In the month of May, 1945, cot-',
ton consumed amounted to

830,568'

bales of lint and 128,94-3 bales of

linters,

compared with 769,678

as

bales of lint and 125,707 bales of
linters in April, and 832,812 bales:

lint and

of

122,863 bales of lint¬

in May, 1944.

ers

In

the

•

eight

months

ending
May 31 cotton consumption wasr
8,116,679 bales of lint and 1,248,668
bales

of linters, which compares
8,414,145 bales of lint and

with

1,109,604

bales

of

linters

corresponding period
There
lint

hand

on

ments

on

in

and

31,

322,021

April 30,

bales

1945,

linters

2,111,207*

402,279 bales of

were

•

.

public storage and

compresses

on

May 31,

1945,

10,132,723 bales of lint

and 36,644 bales of
compares,

of

and

May 31, 1944.

on

On hand in

there

1945,. which

with 2,187,916 bales of

biles of lint and

at

bales of

consuming establish¬

May

on

linters

the
ago-

322,560 bales of linters

compares

lint

in

year

2,141,193

were

and

a

linters, which

with 11,025,514 bales of

These tendencies

lint and 39,314 bales o£ linters

public debt need

April

affect

either

available

credit
rowers

the
to

supply

of

bor¬

increase its cost.

or

private

Pri¬

vate borrowers thus have little to
fear

debt

from

in

the

largest

national

their

concern

history;

r

Wash¬

at

directed at
not

on.

compute-,

tlon may

creating credit.
the

se¬

divK

and

securities of member banks. Total

on

30,

and

on

9,574,489 bales of

lint and 87,622 bales of linters

on

May 31, 1944.
There

were

22,167,678

cotton

spindles active during May, which
compares

with

22,158,674

cotton

spindles active during April, 1945,

should be directed at the way the

and with 22,384,986

debt is managed.

spindles during May, 1944,

active cotton,

Volume 162

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4412

cation of three

"How Can We Avoid

four weeks

or

or a

Participated In Forum Debate

couple of months?
Nathan: If you are

willing
them during the period of
vacation, that is right.
Mr. Henderson: Bob, how many
people did we put to work in the
Mr.

75^

to pay

Another
:'"'v

:>

that

world

have periods of ecodepression?
That is the
question which every American,
'!■ in uniform or civilian clothes, has
.'

} nomic/

been asking.1-.U

<

for civilian

•

and

burst

economic

'

1930's.

will

we

again»hit the
the
early

They say we have always

.had

depressions

and

claim

t

tain

•

keel.

our economy on an even

.this

Does

•

should be able to main-

we

necessarily mean a
economy? That phrase
; has not
been.accepted too kindly
by American business. To many,
lit smacks of regimentation, of a
form of government .alien to our
•

.

; own.

-/',/■-

;

This

•

evening

all sides of America

on

be-

haven of
capitalism.
On our. ability to
■.answer correctly the question of
this evening depends the maintenance
of i pur > present > economic
.ing the last remaining
•

,

.

system.

,

/

H :

Just how can we combat de¬
gressions?
Can it be done by
-lowering taxes and giving indus¬
try a free hand? Can it be done by
.Government going into business

>

as

Can it be done

stabilizer?

a

Department,

Minnesota,

he

is

addition

in

American

Economic

.■

magazine,

Dr.'

Schmidt.

There

or

consumer

no

free

decision

fluid.

There

ployment

in

is

"

-

■

or

a

Chairman

Dr.

Granik:

Schmidt.

„

'

,

you,
;

H

the first, adminis¬
trator of the OPA, an outstanding
economist closely identified with
many government
reforms, and
now,

the -Chief • Economist Tor the

no w

Research; Institute
Leon

Henderson:

Mr.

.

all
to

of / America;

-

the

of

-

mobilized

this

nation

It is inconceivable

a war.

can't

we

•

.

We

resources

fight

that

'

Henderson:

mobilize

won't

or

just as effectively to wage war on
unemployment.
I do "not for a
believe

moment

has

reached

evitable.

American

that- this

the

nation

limit

of

its

didn't

this

evening

four of the nation's distinguished

economists.^
•
First, the Research Director of
*

the

Machinery and Allied Prod¬
ucts Institute, a former economist

growth.

with assurance that another
major depression can be and will
avoided.

be

We

shall

deceive

ourselves, however, if we imagine
it
is
possible at present,

that

within

the

society,

framework

of

eliminate

to

free

a

economic

fluctuations entirely or to achieve
the goal of continuous full em¬

ployment.

The art of economic

depressions

in¬

are

Mobilization

for

I wonder how
accomplished anything.
wrong,

The answer to the

discuss

this

War

we

ever

lies

Granik:

gentlemen.
issues

and

drawn.

Mr.

There

in

the

the

To

Thank

we

sides

start

Henderson,

if

you,

have

the

clearly

are

discission,

our

the

Mr.

10

or

think

don't

I

we

believe

is prepared to

economy

the

I

11

million

stabilization is in its infancy. The
Federal Government, on which

the

20

million

nected

full

deep

The

success.

ever

will

how¬

Granik:

Dr.

Thank

you,

Next,

the

Office

Deputy
War

Director

of

Mobilization

and Reconversion, former Chair¬
the

Of

War

the

Planning Committee
Production

Board,

Robert R. Nathan.
'

•:

Mr.

only

Nathan:

future
our

believe

that

not

we

form of government and

economic

The

I

successfully combat
depressions; we must if

can

system

of

people

is

this

our

to

prevail.
country will

not stand for booms and busts in

the future.
we

have

They have

mobilized

seen

how

war

and

for

they will demand that we mobil¬
ize just as effectively for peace,
for full

nomic

employment, and-for
security.

conviction

that

It
we

is

my

can

plish these goals through

eco¬

firm

accom¬

govern¬

ment and industry coooeration.

Chairman

con¬

effort.

war

short-lived,

>'

wouldn't

v1/// 'V /■

y:: riy' y;\

you

Which

Granik:

Thank

Mr. Nathan.




you,

fect

the

on

about the
when

public would be just
You

same.

of

one

these

never

things

know

starts

out what it is going to be.
Mr. Nathan:
May we come

back,
first point

Mr. Schmidt, to your
there, where you question whether
not

or

depression

a

can

be

inclined to agree with you at one
point and that is during the tran¬
sition period.
We now have some

eight million people still
engaged in munitions production
or

the

in

have

United

uniform.

the

If

within

end

to

States.

We

still

12 .million

some

people in
Jap .War were

few

days as the
question implies, there just isn't
any question that those millions
of

men

sibly
the

and

women

be reabsorbed

civilian

Dr.

a

couldn't pos¬

quickly into

economy.

Schmidt:

Don't

depres¬
different
different

you

think

these people are entitled to a

va¬

Leon

assumed

valuable, efficient na¬
"...,:-V.
•.■'.■'!. /,v:yV;
Mr. Terborgh: Any large-scale
public works program would be
competitive for materials
with
private building, would it not?

the

flexible,

Thirty

forty

or

half

[interposing]:
rations.

like to

live

How

Mr.

there

I think

Nathan:

are

get out of unemployment

,

lars

or

of savings, and the
that have been made

more

analyses
indicate

clearly that those
not in the hands of

very

savings

are

the low

income

masses.

You

Schmidt:

Dr.

haven't

have

They have bought
they have cashed in

//;:

let's

Then

Mr.

Henderson:

raise

woulcl

I

be

in

They

done that.

shouldn't

y;

rates.

Dr. Schmidt: Just

marking them

a

very easy

aclviser to the Chinese Gov¬

.an

NRA, but

creased

that

were

wage

increases.

Dr.

Schmidt:

least

at

proportionately,

isn't very easy.
Dr.

Schmidt:

Twenty-seven

million people are suffering pay¬
roll reductions.

Nathan:

A

recently

study

Mr.

Terborgh:

ventory boom

You

as

a

in¬
result of the
got

an

got price increases

you

choked

And

Mr.

Henderson:

increases

We

the

all

because

price

got

old

monopolistic tricks of industry
that were prevalent in the 20's,

mulated

and

War Bonds per

per

Dr.

but

person,

Schmidt:

its, plus
ployment

per

Plus

family—
family.

bank

plus
compensation,
not entirely half-rations.
be

depos¬

currency,

unem¬

it

so

It

is

may

more.

some

Mr.

ried

by what

we

of

sion,

am

you

little

a

wor¬

because if

say

going to rely

are

out

I

coming

on

the

depression
whatever you

reces¬

or

want to
call it in the transition period on
the basis only of individual re¬
sources as we now have them, I
or

very fearful we may go from
temporary period of unemploy¬
a permanent period.

ment into

Mr.

What

Terborgh:

is

'

recommendation, Bob?
Mr. Nathan:

your
•

In addition to un¬

employment compensation which
hope Congress enacts when it
comes
back—and maybe it will
I

be

back

called

that also
ible

think

a

flex¬

policy, we should in¬

wage

crease

earlier-—I

should have

we

minimum

should have

our

wages,

we

tax program ad¬

case the end of the
quickly, and, in addi¬
tion, we should have a public
works program ready of the kind

justable
war

in

comes

not

that

will

vate

construction but

compete

Mr.

can

Henderson:

and that

was

I

associations
of the

Nathan:

like

would

Mr.

outside

formed

I

writing

was

at the time.
Writing

Mr. Henderson:

States
the

rid-1

come

I

would

the

wage

Nathan:

back

because

to

Mr.

Schmidt

like

to

problem
raises

a

very, very fundamental question.
I assume the implication of your

to

have

can

t

I

Chairman,
back

come

the

to

demonstratedj during

fact that

do

we

unsatisfied

have tremendous

needs

among
the
and we must
post-war period
in which high consumption is the
answer.
If we don't have high
consumption, if we don't have a
high standard of living on .the
part of the people, all of these
tremendous productive resources
American

people,

look forward to

a

in the United States

not

are

to be utilized.

going
T

■

Mr. Terborgh: It doesn't follow

necessarily, though, that high real
consumption is a consequence oJE
raising wage rates.
We had a
very substantial increase in wage
rates, something like 50% in the
late

30's,
we

as

will

you

still

remember,
high

reached

never

consumption.
Nathan:

reached

we.

than

we

a

No, that is right,
higher consumption

had before the wage in¬
were
effected.
It is ob¬

viously
tionship

question of the rela¬
of wages to prices and
profit.

a

wages to

Schmidt:

Dr.

Mr.

That

adjusted

Nathan:

exactly what
justed wages,

what

is

I

wages.

I

don't

you

know

by

mean

but

I

ad¬

assume

you

mean

wages adjusted downward
point where the workers will
absorbed, but the question is,
do you have any such thing as
adjusted profits on the other side?
to

a

be

Dr.

Schmidt:

have

on

You

do

if

you

competition.
Henderson:

the

to

want

ment

While you

get

back to

because

state¬
posed
the

your

you

dichotomy between

society

Schmidt:

a

completely

and

of Adam Smith's

something

laissez-faire.

I

didn't

mention

laissez-faire.

.

Henderson:

you

/

No, you didn't

laissez-faire

don't think

because

I

wanted to iden¬

tify it, but that is what

you were

talking about.
Dr.

are

question of competition, I

mention

Mr. Terborgh: Both.

Mr.

auto-*

"

our tremendous produc¬
capacity, and also I think we
very readily demonstrate the

tive

Mr.

ing?

Mr.

war

Dr.
or

have

then.

question which wages lead to.
It
to me that we in the United

regulated

associations.

Terborgh:

you up

price

open

we

seems

Mr.

there,

was

The

were

trade

non-

of the things I

one

fighting for.

/'

Schmidt: Adam

Smith

was

not

for

question, Schmidt, is that the de¬

was

sired

ment

generally devoted to govern¬
policy.
•' :

objective
wage rates.
Dr.

Schmidt:

is

one

of

low

Mr.

No, no—adjusted

wages.

by adjusted wages?
Dr.

Schmidt:

Wages

workers out of the labor markets.

be put

wages

Nathan:

in

'30,

If

'31

we

and

had

'32,

cut

is it

laissez-faire.

Henderson:

understood
Schmidt:

derstood

poor

help it.
Mr.

that will
absorb
the
total
labor
supply;
rather than have eight or 10 mil¬
lion unemployed as we had in the
late 30's; let's not keep freezing
Mr.

ally

Dr.

•:/

Mr. Nathan: What do you mean

pri¬

with

in

completely
monopolistic industries.

am
a

put into ef¬

Terborgh: No, you got the

increases

was

Mr. Nathan:

more, were

fect.

didn't

we

recovery

Mr.

off

made of the steel industry I think
showed an average of $312 accu¬
not

wonder

a

matic

meant by

recovery.

five

to

shame

a

14 cents; the textile in-i
dustry got down to 12 cents.
It's[

with

commensurate

down

It's

great boom in lum-*
tobacco industry gotj
a

The

creases

ernment.

but when their in¬
come
has increased
moderately
and
the
cost of living has
in¬
say;

industry,

down to

Mr.

I used to

,Mr. Henderson: Yes.
be

Mr. Nathan: That is

it

ber.

One

got

hour.

an

didn't have

and

raising the Chinese wage

/.»

Henderson:

Terborgh,

cents

up?

Schmidt:

thing to

Schmidt:

favor of

Mr. Nathan:

Dr.

matter of record.

a

Dr.

they

bought War Bonds?

but
plenty, too.

is

the Chinese wage rates.

mean

Mr.

with

a
gradual increase over a
period of time in the wage level

Terborgh

would not have hacl

we

depression?

Mr.

J: ■='

ture.;'-

what

on

George

E. P. Schmidt

Dr.

Henderson

in Quickly and be of a short term,

types of public works, such as
compensation in most States, par¬ roads, levees, and things of that
ticularly in the South?
Do you kind, that could be undertaken
think there is any buying power
quickly ,and would not be com¬
for the mepbers of your chamber
petitive with private building.
I
in that?
agree that during the period of
Dr. Schmidt: We have 100 bil¬ transition we are
going to have
lion dollars of liquid assets also
shortages of materials and you
rattling around that can be put to can't build up your backlog of
use. :;y.y/y/v vy, •
materials, and it would be un¬
Mr. Nathan: I have two com¬ fortunate
if public works went
ments to make on that.
In the in and
competed for those short
first place, there ^are over 30 mil¬
materials. ;
7/:/-:^y/;
,/
lion people who are eligible for
Dr» Schmidt: You mentioned
unemployment compensation, but raising minimum wages.
Would
according to the best technicians, you
really
create
purchasing
approximately one-third of those power by marking up wage rates?
who will be unemployed are ex¬
Mr. Henderson:
I would cer¬
pected to receive benefits.
That tainly like to say that you would.
is one side of the picture.
The I was chief* economist for the
other side I think is very impor¬ NRA and I
certainly saw what
tant.
We
have
been
talking happened there, and I think what
loosely about this 100 billion dol¬ has happened to purchasing power

avoided?, I think that I would be

seven

of

entirely
entirely

are

you

you can

y:

Mr. Henderson: I think the ef¬

of

man/of

who

women

indirectly

or

the

men

Schmidt:
It
might be a
depression but it would be

expe.ct?

Mr. Terborgh.
the

with

rather

be mastered in time.

Chairman

/

art

directly

are

and

men

have, certainly,

Henterson

would

in the armed forces and the .10 to

major
responsibility
must
fall, has as yet neither the knowl¬
edge, the experience, nor the or¬
ganizational setup to guarantee

four
in¬

y /;■

■•

kind

Schmidt:

Mr.

because

this

absorb

serious de¬

a

Henderson:

would,
that

have

we

to

for

Mr.

atomic

bomb ends the Japanese war next

week, will
pression?

shall-

%

million people are entitled to un¬

we

or failure of joint action
by government and industry.

Chairman

;

from the usual causes, and

some,

question

evening

due

Dr.

success

Mr. Terborgh: I believe we can
,say

and

just happen; it took plan¬
ning and fighting.
When I think
of
the i*number'
"practical"
people who told
us
we
were

with the Federal Reserve Board, a

Brookings graduate and author of
/the recent book, "The Bogey of
Economic Maturity," Mr. George
Terborgh.
,j

Neither do I believe that

booms

y/

employment compensation—

Thank

-

t

And

peak

remedies.

con¬

All over-all .planned economies
have been regimented societies.

v

in pri¬

over

the

was

curious

calling

'

-

We

causes

unem¬

no

y;

very

sion,

or

prison

a

centration camp.

by huge Government expendi¬
tures? To answer these and other
questions we have brought to the
forum

a

choice;
two, a society in which the costs
and prices are perfectly flexible
and

That

.

■

brief.

in¬

or

best

■ j; •'/. '/;/,," •
Mr. Terborgh: I agree that a
depression will be inevitable.
I
think, however, that it will be

be only two
ways
of avoiding
depression:
one,
a
completely
regimented society in which there
little

employment wasn't

crease.

to

appear

the

During

number of those put

million.

7

•

,

Schmidt:

the
vate

P.

E merso n

Nathan:

increase in the war—I take it you
don't mean those put in uniform—

of

Security

any

Mr.

:

to
the

of

duties' Editor

other

or

of Com¬

Chamber

,leave: from the University

his

the ques¬

we pose

tion, VWhat Can :We Do to Com»bat Depressions?",
With Europe
rgoing socialist,- or< even a little
•further ; to
the. left,. we
hear
.talk

h

the war when there
question about price
profit or anything? -

wasn't

A Professor of Economics

e s e a rc

On
the
other
hand, .complete
fluidity of prices and costs are
highly improbable.
For
these
reasons, while we can minimize
depressions, we have no right to
mislead the public by promising
\ the end of all
depressions,

planned

best year of

Eco¬

States

vestor

•therefore, we will continue hav¬
ing them in our society.
t
i
Others say we don't have to
•have depressions.If government
/plans wisely with industry, they

the

merce.

is

booms;

of

Director

United

Dr.

of

bottom

the

R

^luxuries is f inally ex-

hausted—arid then the boom will

!
J

Next

?,

nomic

on

:

,

t;'••';,••Some experts: predict a period
1 of
tremendous prosperity in the
t immediate post-war future, to last
.until the pent-up buying energy
J.of people who have been starved
»

Depression?"

(Continued from page 730;

It

for

His

was

genera-

laissez-faire.

If

people misun¬
Adam,
I
can't
f

Henderson:

It

becomes

matter of dispute.
Dr. Schmidt:

book

*

His book

was

a

.

de¬

voted to what

should be.
Mr.

you

government policy
That is forgotten.

Henderson:

I

understand

want to go back to the nlace

(Continued

on page

756)

Thursday, August 16, 1945
successful, and

only partially

(or

"How San We

that

the

remedies

same

are

now

urged today without proposals for

of the 30's.
Unfortunately, the

correcting the

errors

Mr. Nathan:

things

(Continued from page 755)
determines

market

the

jwhat price and wage and all cost

j,shall be.
I

I think

Schmidt:

Dr.

have

we

[to restore the market to its tra¬
ditional function to
•

than

gree

start by

abolishing monopolies?
Dr. Schmidt: I would certainly

abolish all monopolies possible.
Let

Nathan:

Mr.

ask you a

me

When you say in¬

Dr. Schmidt:

industry act¬
ing collectively through some su¬
per-organization, or the individ¬
dustry, do you mean

man—the

ual

that runs the

man

backedj up any action in an anti-

two.

.

Oh, yes.

it

by name and company

name

by company.
Dr.

,

from

I don't mean this

Nathan:

personal point of view, but

a

competition, I

32

imum;'degree of competition, but

don't.

question is whether or not
you can attain it and whether Or
not it is possible from the indus¬
trial side or any side, and if it is
not, let's face the facts and see
what adjustments may have to be
made possible because we have
an imperfect competitive picture.
Mr. Henderson:
I want to get
into that because I don't agree it

ernmental

the

is

choice between the two.

a

lliave

had

mixed

a

success

than

purchasing power during" the
30's, and I think we certainly

of

Mr.

step.
let's

Now

Nathan:

Mr.

come

process

■

;

.

\Dr. Schmidt:

thie kind of

The Germans had

"amphibious" income

ybu are talking about.
the

of

national

control

of the

income

in

was

government when

income go to the government nor
that anything Hitlerian should be
undertaken.

things
Dr.

There

Schmidt

arecdestined
ndfiPnal

are

lot

to have

25%

filtered

Mr. Nathan:

j

very meaning of collective action.7
example, they control new in¬

of the

You figure

acting through
ment, doing something?

society,

might add

you

in

to

bring

to

petitive

me

it

one

this

attempt

to

combat depressions?

see a very ma¬
I have no illusions that

Schmidt: They can do

turn

to

from

what

is

around
place in

to.
a

I

It

com¬

society

try to

and

lead

to

depres-

these

go in doing that, since govern¬
ment is the only one that can do

anything about it?
Dr.

Schmidt:

would

I

like

to

ought to look into the possibility

front,

it is

of

lem

to

prob¬

be

solved

by the Federal Government,

Mr, Nathan: Schmidt, what
business
that

do?

I

because^

can

interested

am

while

in

I

see

good suggestion but

certainly

we

taxing inventory profits. I am
not recommending it, but if in¬
ventory
accumulation
was :, the
major cause of the 1930 collapse,
we

ought to avoid inventory

mulation.

certainly
lidve the greatest respect for the

operate

achievement

accu¬

Should businessmen

co¬

that?

ing the
dous

war

of

all

which

history indicates, I
in

when

people

industry dur¬

and for the tremen¬

progress

back

Terborgh:

Mr.

Henderson:

1929,

'30,

were

American

seem

'31,
asked




to recall

and
to

agree.

The construc¬

under the so-called
laissez-faire system has been go¬
tion industry

ing along now since the early 20's
and
has
not gotten
itself into
shape where you can get a de¬
cent dollar's value in housing. It
to

that there is a gov¬

me

Mr. Terborgh:

I

have

would

under

which

you

get a real guaranteed an¬

for example, for the
construction
industry.
I
think
wage,

dollar cost in housing for la¬
would go 'way, 'way down.

your

bor

Dr.

Mr.

with

the government in

Sehmidt:

How

would

for

Mr. Henderson:

Terborgh:

I

am

not

ques¬

government

I merely

say

that

tried

in

'32,

the

remedies

that

hire

the

30's

either unsuccessful

were

were

I would be glad

law. I am ready to pass
a law any time it is going to mean
some
employment,
because, to

bill used the United States.

The big is¬

it

and say that my guess is that de¬
pressions have no divine origin,
we

are

not
inevitable,
something about

are

going

do

can

have

to

other

some

of

system.
It seems to me
the biggest single threat to the
competitive free enterprise sys¬
tem lies in conditions such

had

in

as we

the

early 30's, and until
government does something about
it we are not going to have any
to that.

answer

Mr.

Terborgh:

controversial

Those

are

statements

non-

I

but

should like to ask, should we leap
to the alternative of governmental

guarantee of perpetually full em¬
ployment?
/
Mr.

Nathan:

If

you

by

mean

social

monopoly campaign.
Mr.
Nathan:
May

That doesn't
teed
you

have

to

be guaran¬

by the small contractors, if
have a joint participation be¬
the

government.
many

other

contractors

and

the

We have it on many,
fronts.

There

is

a

to

say

no,

wouldn't

you

get flexibility in the system; but
if you mean we won't have more
than three million unemployed at

time—or

any one

four—then

you

might

don't want

we

a

go

to

guar¬

antee

beyond that, that is differ¬
but if you are going to sit

ent;

back and let it go to ten or fifteen

twenty million unemployed, I

or

don't think there is any question
about it that government—
Mr.
You

Terborgh

arp

[Interposing]:
not talking to me, you

understand, I have said the

trary;

I

but

con¬

asking whether
we must go to the other extreme
of undertaking a commitment to
am

see

to it that

all

the time.

everybody has

a job
;;vy;. >; ■„?.;>/'

Mr. Nathan:

Not everybody all

to

turer that thou shalt
and nothing

it

to

it

there

that

else.

\;yy'
Or the government

Mr. Nathan:

.

it if you

do

don't.
It

Schmidt:

Dr.

'

i"

indi¬

works

That is right. The
is to see that there is
opportunity for business to
employ people, an opportunity for
business to provide jobs, and that
opportunity must come through
Mr. Nathan:

main thing
an

an

whether

to

why

when

we

consideration

a

a

their

sell

to

of

not there is

going to
depression, I think over and
again we must come back to

a

over

the

is

That
back

come

them

for

goods.

be

that there will be

assurance

market

or

realization

that

in

order

to

have

prosperity in the United
States we are going definitely to
have to have a high level of con¬
sumption. v,-/:/" :
'/j.
-/*/
Mr. Terborgh: Do you think it
is possible for the Government to

are

that

job opportunities are
reasonably soon after
anybody loses a job, and if private
industry doesn't do it, I think gov¬
available

I certainly tend

Mr. Henderson:

and I would
like to ask Terborgh and Schmidt,
agree

which

with Bob,

do

they

is

think

worse,

kind of undertaking on

some

the

part

of government" for reason¬
ably full employment or avoiding
all

the

say, t

trouble

ten

that

million

with,

comes

people

unem¬

Schmidt:

I

disagreement

what

like
are

to

on

see

those

there

think

is

that, but I
spell out

us

things

that

the

government ought to do.
Mr. Henderson:
to

spell

do

environment
it—that

some

I will be

glad

In the

has

ment

I

think

Full

to

if

have

Pass

the

Murray

Employment Bill, is that it?

Mr. Henderson:

I will take that

to

put

income

specific job.

a

set

had

you

tax

nec¬

Govern¬

the

would

you

policy in which
uated

It doesn't

that

mean

and

a

tax

grad¬

a

in

which

would balance the budget at

you

high level of employment and
keep it there, and I think if you
provided adequate Social Secur¬
ity, that you would be creating

a

the

of

conditions

under

which

people would get jobs.
,■
Mr. Terborgh: That doesn't an¬
swer my question.
V
v
Mr. Henderson: It

it

as

far

I

as

Mr. Terborgh:

there

an¬

concerned.

should

under¬

unequivocal commitment

an

Mr.

certainly

am

I asked whether

Governrhent

the

everybody.
Nathan:

I

will

unequivocally.
Schmidt:

industry

-

Mr. Henderson:

swers

of them out.

for

Government will

them to work.

some

ployed?
Dr.

the

essarily

is

any

I

it

answer

don't

question

think

that

the

Government should.
Mr.

Terborgh:

deliver

as a

starter, because that says that
government does assume this re¬

can

sponsibility.

I

don't

think

it

it.

question.

Dr.

Schmidt:

It

says

that the

United States does.
Mr.

States

housing finance. Cer¬
tainly it has been one of the best

Henderson:
assumes

United

The

this responsibility.

Schmidt:

Not

Mr. Henderson:

Mr.

Mr.

on

Nathan:

That

Terborgh:

It

the

govern¬

Mr.

But to

me

there

kind

Nathan:

another

mean

„

Henderson:

I

boondoggling before I
unemployment;
Mr.

is

would

boondoggling.

ment.

on

manufac¬

a

produce this

guarantee unequivocally to em¬
opportu¬ ploy at all times everyone not
nities for people to get to work,
employed by private industry?
and get to.work reasonably quick¬
Mr. Nathan: Let's take a figure,
ly once they lose a job.
In this George; let's compromise with a
advanced, in this competitive, in figure of two and a half million.
this
interdependent
society
of I think it is quite possible for
ours, when a man loses his job his the Government to say that when
sole source of income is gone and the level of
unemployment in the
he hasn't a chance to go out and United
States gets to two and a
develop some kind of job as he; half million, pr let's say 4% or
did in the early days when peo¬ 5
% of the total gainful workers
ple were more or less on their in America, the Government will
own initiative, and it seems to me
assure jobs for any additional un¬
the government has a very, very
employed, and if industry doesn't
fundamental responsibility to see —if
Government
doesn't create

gov¬

ernment

direction to

a

time, Terborgh, butmust

see

Dr.

joint participation with the

And it doesn't

Henderson:

Mr.

involve

rectly rather than directly.

compelling contractors, most¬
ly small fry, to guarantee annual
wages in an industry like that—

[Interposing]:

one

that,
which

on

clined

Dr.

Henderson

add

I

Leon? The pro¬
gram
you
have
listed,
which I think is a good basic one
to start with, is one which is en¬
tirely within the sphere of gov¬
ernment activity.

word

will

think

that

construction

the

of

stabilization

industry,
taken
together
with
public works; and then I would
like to see a real vigorous anti-

perpetually full employment that
everybody gets a job the day he
is out of uniform, I would be in¬

see—

you

and

wages,

bility, and then I would like to

Do

that,

Congress

security,
on
minimum
particularly for the very,
them; secondly, unless we
do very low level people.
I would
something about it, whatever de¬ like to see a program for fortify¬
gree of free competition we have ing foreign trade.
I would like to
is going to be lost to us and we see the housing I talked about and
and

government accept this responsi¬

Terborgh:

/

done

committed to
that particular idea, I would like
to see a program on taxation, on

riod I have lived in has been un¬

Mr.

amendment, I will

having

having

employment.

;'

I will
if you

said

starter and

a

good

Once

to hire

Mr.

for

a

take

of the disgraces of the pe¬

I

Henderson:

Mr.

take

first place, I would like to see the

me, one

The author of the

Dr. Schmidt:

go

have

you

to pass a

tween

tioning, myself, that this is a iob

distinction between their govern¬
ment and themselves.

going

are

people try to make a

that

take that too.

to

government bring about a set
conditions

nual

we

we

is, first of all, whether depres¬
can
be
avoided, whether
they can be combated.
I would
like to stick m^y neck 'way out

What should the

Henderson:

would

field

one

if

ernment must.

ernmental situation.

of

think

I

Sometimes

difference.

no

think

sions

would

Mrs Terborgh:. There are
many
things that can be done on that
a

I

Mr.

the

that

on

I

to miss the big issue.

no

thing.

but basically
that will have

gotten

of the monooolies on the one

tjust'

government try to devise in¬
centives.
I am not sure this is a

some¬

construc¬

government do?

ganizational difficulties that stem

.;s a problem which can be
solved by the internal actions of
business as such.
;
.Dr.

want
seems

the

could have

industry

side, the restrictions by the cities
the other, and the labor mo¬
nopolies, you could have gotten
the cost of the house down to
where somebody could buy it. .

talk

to
do.

can

question.

a

tips

■

wants

That

Nathan:

which

under

had
condi¬

you

creating

government

seems

Nathan:

the

■

dif¬

a

do you see for

on.

Mf- Terborgh:. 1

jor. role.

Bob

realm.

what business

about

govern¬

where one can
correct any kind
of distortions or any kind of or¬

Terborgh

government

.

.j

is in

That

Schmidt:

Dr.

ferent

I would like to ask

■George, what role
or

'1

•'

I

certainly don't.
Mr. Henderson: What about all

pe¬

thirty-

vv^-' Vv /':
Do you?

Henderson:

If

Henderson:

Mr.
the

Mr.

pther things

avoid

want that in this coun¬

try?

Mr.

Mr. Nathan:
or

we

Mr.

Dsh Schmidt: Something of that
natdre—control by TVA and vari¬

Schmidt

Do

do.

recov¬

period, 'didi the rest of it. '

associations

trade

off the

We killed

of housing construction by a
costs in the
building field. The NRA did part
of it.
The great boom of '36 to
'37. the organizing boom of that

For

five million?

ous

^

vestment—the

per¬

on

j • Dr. Schmidt: I think that is the

Dr. Schmidt:

through

government in the post-war
riod—state and local.
/

that it?

was

mistaken policy as to

rid

have got to violate
of competition, is

of

[Interposing]: /We

income

we

tradition

/

a

identify—

you can

the

30's

ery

tion

act col¬

business to

for

lectively,

About half

Hitler assumed power.
Mr, Henderson: I didn't suggest
for one minute that half of the

order

in

of the

half

'37.

to

tions

In other words,

Mr. Henderson:

:

individual.

It is up to the

necks,

Of* competition for the consumer's
dollar.

a

haps the most characteristic fea¬
ture of that era, and it was in no
small degree attributable, I be¬
lieve, to the fact that we raised
building costs by more than a
third during the four years 1933

In other words,

Terborgh doesn't agree with
the Hoover policies and he would
lay the depression on his door¬

for

raises

That

Terborgh:

second

and as back to this other matter, Schmidt,
long as the voters, the people, are What about the element of busi¬
ables to make the big determina¬ ness collectively? What can busi¬
tion between what they want and ness collecively do to avoid a real
what they don't want.
■./v.If the gov¬ depression?:'
Dr. Schmidt: I don't think busi¬
ernment/program is one of forti¬
ness collectively can do very much
fying consumption by fiscal pol¬
icy,,I don't see any reason why to avoid a depression because, the
we
can't have the most vigorous anti-trust laws are right on their
democratic

the

housing

point I am very much interested
in, because the failure df the
building industry to revive in the

over

anything
Terborgh: I agree.

Mr. Henderson:

a

tremendous shortage

a

any

credit.
Nonfeasance — it

Nathan:

housing
this time

developed
All during

was

and there was never
possibility of getting a really
adequate housing program.

a

Mr.

quite a long time. I think we can
still have one as long as we keep

have

there

wouldn't do
Mr.

Social

Security program
where somebody lived reasonably
decently while out of a job, you

ministration

Mr.

if you

I think

Henderson:

a

could

of it.

ernment had—control

off

on

Terborgh:
It was malad¬
of controls the gov¬

Mr.

Mr.

drain of all of the regressive taxes

lack of gov¬

rather

policy

dollar

the

Or

income for consumption purposes.
I think there was a tremendous

very

I think it is a

of

lack

We

economy

combination of

Nathan:

Mr;

Mr.

kind

governmental policies?
industry.
No, I certainly

of

success

am sure

Schmidt:

getting rid of corporate taxes
entirely, and also exempting peo¬
ple or families that spend all their

as

Leom and I would favor the max¬

to

value.

had

is

in the FHA interest rate in 1938.

of

consider the episode of 1931an example of the lack of

you

this

always persecution; and in all
talk about

Mr.

a

they
employ everybody
out of a job? I would like to get
a list of the projects, or types of
projects.
done

Dr.

a mi¬

levy that worked very effec¬
tively—a reduction of % of 1%

depressions

Mr. Terborgh: What would

have

I think if you had a tax pol¬
icy that exempted—take my idea

dangerous thing.
Terborgh: But Bob, don't

is

I think that is one of

ing.

We think that inventory specu¬
lation

competition, and
thpn every time you have a proses
cutipn. of an anti-trust case, it is
and

government

would have a stimulation to buy¬

government and industry.

industry tends to talk about free

enterprise

of the tools, a

one

President Roosevelt once said that

time when the

never

the disgraces of the 30's.

can

ployment through experience rat¬
ing and the unemployment com¬
pensation law. We think that is

^climidt: Personally, I don't

Jcnow as I have.
Mr.

First,

something, and we exhort him con¬
stantly to do something. We en¬
courage them to regularize em¬

I would like to

Mr. Henderson:
see

Let's separate the

Nathan:

Mr.

the individual
business man do anything?
Dr. Schmidt: I think he can do

■.

There

Henderson:

a

was

It is

sue

.

Mr.

job.

do?

What should industry

hamburger stand?

Dr. Schmidt:

tions.

or

think with
spending program was adequate
cause, industry seemed to be par¬
to take care of every party out
alyzed to do anything about it. of a

question, Schmidt, not to be per¬
sonal, but have you ever publicly
'trust case?

where
no
actions
inadequate ac¬

nonfeasance,
taken,

were

and I

unfortunately,

Do you want to

Mr. Henderson:

!

greater de-

a

have during the war.

we

put them on the pay
roll and add another man and increase the flow of buying power,
workers and

done to bring

ever

nor

remedies of the 30's I think were

where

have

we

down the interest cost.

It

of planning

will

will

depends

on

take

take

the

the people who

,

to

against planning are willing'

are

1

vestment

relative

actual

to.

DIVIDEND NOTICES

con¬

along with.
If we are go¬ sumption.
Mr. Terborgh: We had some in
ing to take away the mechanics
and the funds to do any planning,; the
housing field and building. ' •
then we are certainly going to.
Mr. Nathan: What about inven¬
go

but I think
we are going to avoid that.
This
country can stand rebuilding, can
stand a great deal more of the
resources,
services,
education,
health, homes, urban redevelop¬
ment,
highways,; bridges—there
are plenty of things we need and
have

boondoggling,

just don't have to have boon¬

we

doggling, George.
Mr.

,

those

of

Many

Terborgh:

sion remedies

f
^

such.

as

tory?

■'

■

Mif.

Terborgh:

1

Mr. Nathan: We had

period of

a

prosperity, very
economic
activity,

tensive

DIVIDEND

in¬
but

high

very

inevitably in that period of eco¬
nomic
activity ; because of dis¬

The directors of
hove declared

relationships—and I think

torted

five

brought that out in your own

Mr.

But

can

could

people to work
useful activity when private
industry doesn't, you must come
put

in

conclusion that

the

to

United

not

States

than

more

that he

do

once

I think

*

too,

what

from

listed would keep us out
depression
because
you
maintain a high level of

that you
of

a

would

,' consumption.,

;
very im¬

-

Mr. Nathan: That is a

decide here, I believe,
the

not
'

We must

Leon.

point,

portant

whether or

Government has the

re-

sponsibility
to
try
to
avoid
depressions or just to alleviate
conditions when we get into a
depression.
I would like to ask
Mr. Schmidt, for instance, what

Government
to alleviate
avoid
depres¬

do you think the
ought to do to try

,

to

depressions,
sions?

'

■

/C

avoid depres¬

Schmidt: To

Dr.

;

■

sions—that, is

a

difficult

very

in / your

it may
will learn how
handle this thing.
I think in

be

ultimately

to

the

don't

we

timid

the

don't

we

won't

have

kind

this

of

Mr. Henderson: I think

and Canada think the
Mr.

Nathan:

something.
Dr.

what

doing

they

know

the

Will

do

crisis

when

comes?

Henderson:

Mr.

when

comes

number
and

of

certain
of work,

a

out

people
there

then

making deci¬

people

spend and: invest/and how

the Government govern those

can.

people unless it regiments them?
How can they:/prevent depres¬
sion?
For instance, what should
we have done in '28 or '29 to pre¬

subsequent depression?
;,v That
is what - you, t are asking.
What would you recommend?
the

vent

I will give you a

Mr. Nathan:

recommendation,

the

but

first

thing I want to say is that your

Govern¬
nothing

that

do

can

the

literally

is

implication
ment

regimentation.
I think
certain forces in our
free
competitive
society
that
cause depressions.
I think there
are
certain distortions that arise

crisis

The

get

you

is

of

choice

a

do. You can
reduce taxes, you can underwrite
foreign trade, you can step up
the Social Security, and you can
do more building.
There are lots
of things that you can do and, as
I say, not consider them as regi¬

things that you

can

;■

j/;

Chairman Granik: We pause
summation

a

Mr.:

of

this

Schmidt, will

It

Mr.

up?

that
that

appears

and T* agree
much that

there is

for

arguments

you sum

Terborgh

while

the

evening.

Schmidt:

Dr.

be

can

done to

mitigate depressions in a
society
where
you
have

free
free

consumer

vestor

choice and free in¬

decision, it is exceedingly

difficult

iron

to

pletely.

.

be

sure

that you

fluctuations

the

out

'//''/' V:/';-v:-V; /;//

can

com¬

/

/

I
would agree that there may be
something to the idea of a flex¬
ible tax policy.
For example, if
depression threatens, we might
I

think

without

reduce

there/are

has

Mr.

taxes,

Terborgh

as

taxes

or

and

Henderson

Mr.

If you could

suggested.-

bate

remit

taxes

re¬
of 10

when

depression

threatens,

something

during

done

maintain

might
be
purchasing

which

power.

periods
of
prosperity
inevitably, create the
breaking point.
Why did we
have a depression in '29 after we
had the years of prosperity and
everybody through the millenium
had
arrived, and suddenly the
thing broke?
It broke because
wrong.
I think
had the depression

something

was

the

we

reason

at the end of '29 was because dur¬

s

ing the 20's we didn't have enough
buying power at low in¬

mass

come

levels;

investment

we

had

relative

to

too
the

much
level

of

consumption.
With a proper
program of consumption, of So¬
cial Security, of decent, reason¬
ably high wages, of foreign trade
development,
of
public
works
when necessary, of. anti-monopulistic practices, I think we can
avoid a lot—not necessarily all
.

of them

for

but

lot of the

a

reasons

them regimentation.
Dr.
Schmidt:
I
would
with

most

of

what

Nathan:

relative

to

Mr.

dollars

to

Terborgh

well-rounded

and

Nathan

agree

said.

Over-investment

agree a
Security

is a desirable' feature,
and certainly we ought to provide
income for everybody who loses
his
job.
This country is rich
enough, certainly, to afford that.
Private business, being composed
of millions of independent units,
can't do very much as such, but
the individual businessman prob¬
can do a good deal by bet¬
planning, by avoiding inven¬
tory speculation, by avoiding ex¬
cessive expansion, and trying to
build more of his capital during

ably
ter

depressions when he can get it at
low cost rather than during peak
oeriods

as

was

done, for instance,

in the skyscraper

building in 1928

and '29 in New York..
I think there are a great many

can

Government

do, but certainly if the Gov¬

is going to adopt a

pol¬
icy, it needs to coordinate all.the
various
bureaus, especially the
lending and the loan guaranty
bureaus, so that you can have a
flexible

something—over-in¬ period,




^

Social

program

ernment

Would you agree, George, we bad
over-investment in the late 20s?
Mr.

billion

other things that the

depressions.

Mr. Henderson: And I don't call

New

York,

-v.

July 30,

shareholders

record

of

August 24, 1945.

at

the close

business

of

O.

policy

of

amortization

interest rates, and various

Merchants National Bank

&

Farmers

located

Eureka,
Nevada,

at

is closing its

The firm that had these

oi

16,

always

' C. L. TOBIN, Cashier.

which will

encour¬

greater loans during threat¬
ening depression and somewhat
excessive

the

off

during periods
pansion.

loans

of excessive

Granik:

ex¬

Thank

you,

Schmidt; and will you
Mr. Nathan?

sum

Chairman

Mr.
up,

Mr.
fair

Nathan:

to

I think

it is

only

that Mr. Henderson
and I feel very strongly that this
say

system of ours, as Leon once said,
a lot of kick left in
it.
We

has

feel

that

depressions and serious

unemployment and mass depriva¬
tion are not necessary and can be
avoided within the framework of

free enterprise system, without
regimentation.

a

During the transition

or

during

the early

stages of the reconver¬
sion,
we
feel that
some
dis¬
turbance/some chaos, some un¬

employment is going to be inev¬
itable, but with proper govern¬
mental policies during that period
as
well as later on, a great deal
can
be accomplished to iron out
these
serious
depressions
and
serious unemployment.

As

lieve, and sincerely so, that Gov¬
ernment does have a responsibil¬

responsi¬
bility to maintain a high level of
economic
acti vity.
Government
has
a
responsibility to provide
people with jobs when free pri¬
vate
enterprise cannot provide
them with jobs.
We believe those
jobs can be provided through use¬
ful, valuable public works, ■■ be¬
Government has

ity.

cause

believe

we

a

within

that

these United States there are tre¬

NAMES.

help to satisfy,
We
certainly
also

a

very

that these programs of
government, which would include
taxation,
progressive
taxation,
elimination
of
the
regressive
taxes that fall on the lower in¬
strongly

come

tion;

and affect consump¬
believe that a social se¬

groups
we

which is adequate
to
provide people with a real
sense of security, and financed in
a way so as not to deflate rather
than as the present system does:
we
believe minimum wages and
curity system

a

continuous

we

believe"

high
that

wage

foreign

policy:
trade,

foreign development, foreign
loans, public works program and
a
vigorous anti-trust and antimonopolistic activity on the part
of

government; will combine to¬

gether to help give this system of
ours
the
economic environment
necessary

not' leads.

are

names

by,

interview diminish rapidly. <'

of curiosity

percentage

small amount of business

seekers,

people who
just doesn't

or

offer that

to

it

campaign and they would deliver the book that was requested.
WITHOUT GOING INTO THE VALUE OF SUCH A RECORD,
WITHOUT

STRESSING

INVESTMENT

PROVIDE

THEY

offer.

another

REPORTS

THE

ON

IMPORTANCE

for private industry to

OF

Then
AND

SUPERVISED

ASSISTANCE THAT THEIR FIRM WAS ABLE TO

CONTINUOUSLY

OFFERED

PROSPECT'S

THE

THEIR

FOR

TO

CLIENTS,

SUPPLY

HOLDINGS.

they made
STATISTICAL

They

away

gave

plenty, they made this valuable service too easy to procure; they
made the Whole idea too cheap.
As a result the firm was busy

sending out statistical reports, spending money right and left,: and
the only ones who had a good time were the prospects; EVEN THE
SALESMEN GOT TIRED OF THE WHOLE IDEA. ' They > finally

began to knock the entire plan, they said it .wasn't any good. I
>
/
The plan is good, j It is being proven so today.
But now. it is.
used properly.
One more thing the new sales-manager did when
he cleaned out this sales organization.
He also cut down on the
volume of his mailings, BUT HE IMPROVED THE QUALITY OF
HIS LISTS.
This idea of sending out thousands of names from old
lists where

replies contain a large percentage of deadheads, is not
waste of valuable printing, stationery and postage—BUT (IT*
IS ALSO A WASTE OF A VALUABLE SALESMAN'S TIME.',/.a
\
a

Another

tip—this firm now uses the reports of a. large
agency, but when a request for these reports
the salesman THEY ARE RETYPED UPON SPE¬

good

statistical

national

is brought in by

CARRIES

WHICH

STATIONERY

CIAL

THE

NAME

FIRM'S

AT

WITH CREDIT GIVEN TO THE AGENCY THAT PRE¬
PARED THEM IN SMALL PRINT AT THE BOTTOM OF THE PAGE.

THE TOP,
This

the prospect see's-the advertising
agency.
Incidentally, sales

way

of the

statistical

of the dealer instead
have picked up since

in this firm's sales organization was made a few months
One of their salesman who knows his business told us, "I
want five leads, if two of the leads will qualify, I'll sell one!" That's
20% average on calls—even a 10% average is excellent.
/; i "

the shakeup
ago.

/.

/

n

—r—...

\

••

■,

,n.,

,,

.i

-.I,,—•.

1- /

,

/

■

,,

i.

eluding the pipe lines. However,
natural gas is extremely" cheap
and plentiful.

(Continued from; page 734)
.

feel

modicum of business

a

salesman to waste time on them.
In this particular instance,
this firm had poured thousands of letters into Uncle Sam's mails
offering a handy record book for keeping track of security holdings.
Lists of all types of security holders were used
The percentage
of return averaged very low, but huge mailings brought in the large
number of replies.
To add to the initial expense involved, the
booklet itself was also quite expensive.
;
/ ; At the time this campaign was conducted the firm had about
ten salesmen.
Today they have three—and they are a lot better
off. < The salesmen they now have calling on leads are not only
qualifying customers, but they are working. Formerly, some of
their salesmen would visit a prospect who had replied to the mail

among the millions and millions
of Americans which Government
can

Such

After several weeks, or a month, goes

unsatisfied

demands

mendous

OF

of securing a favorable

certain

a

such

only

longer run, we be¬

for the

COLLECTION

pay a

age

choke

PROCEDURES.

UP"

collection of several thousand

a

point that is overlooked in following up leads is that
salesmen fail to qualify their prospects properly.
There' is-

have
other devices

shown

Another
many

1945.

/■',V:;

A

the chances

creditors
of
the
association
an
hereby notified to present the note*
and other claims for payment.
June

v

power

who had replied to direct mail advertising,
names spent a small fortune in direct mail

lose their effectiveness.

Eureka in the
State
oi
affairs. All note holder*

therefore

Dated:

pulling

They are not leads because they were not followed up within a
few days after the request for the booklet, which the firm offered
in its mail campaign, was received.
LEADS SHOULD BE FOL-^
LOWED UP WITHIN A WEEK AT THE LONGEST^-otherwise they

other

and

were

we

the

"FOLLOW

RIGHT

cards—names of people

AND

BELL, Secretary.

LIQUIDATION NOTICE
The

THE

Just last week

of

test

absolute

no

advertising—all they had to show for it was

////;■'/ /\::/jy//V
C,

is

DON'T ,USE

1945.

has
this day declared a dividend of Twenty (20)
Cents per share on the capital stock without
par
value,
payable
Septemoer
15,
Imd
io

way.

are

/

to

money

Street

Broad

The Board of Directors of this Company

England

same

They

Schmidt:

advanced

140,000,000

sys¬

tem to work with.

mentation.

sions to

know

-r'\

of advertising
it is used. But there are some (sure fire) ways to waste
on
both direct mail and newspaper advertising IF YOU

before

COMPANY
30

-

am

everything, then Heaven help us,
we

The Securities Salesman's Corner

PIPE LINE

THE BUCKEYE

alto¬

answer

N. Y.

55 LIBERTY STREET, NEW YORK 5,

business

By JOHN DUTTON

more

because

enterprise, as you can Took up in
the telephone book, and we have

.

Maybe

great deal.

a

we

years

of

close

There

positive we have
to learn, but if
going to sit back and be

are

thing to do because, after all, we
talk, about -free
ehterprise, but
there is no such thing as free

,

15

or

know

gether and I
a great deal
we

we

decade

last

the

at

Chairman, Finance Committee

statement
haven't

original

the

on

stock, payable

B. E. HUTCHINSON

//

here this evening that we
learned very much and

have learned

■/;/;'

I want to get in

because I gather
Terborgh is saying
is talking about what you
you are in the depression.
that a lot of these things

that,

on

use,

with that.

agree

Mr. Henderson:
'

produce - j ust
and I do

can

can

we

in the

we

said

record

are

you

share

per

common

August 20, 1945.

see

you

while

distortions

these

Herrick,Waddell & Co., Inc.

dividend of seventy-

September 14, 1945, to stockholders
of

would break.

Schmidt:

Prospectus upon request

Chrysler Corporatlorv

a

($.75)

cents

outstanding

reports, George—in the distorted
relationships
it
was
inevitable
that the thing

ON

COMMON STOCK

Mr. Nathan1: If there is a real going through the process or rec¬
question, and I certainly do not ognize them only when you have
grant it, but if there were a real gone through? //;V-:/ :'/^/././,/
Mr. Nathan: You or Terborgh
question whether the Govern¬
ment

Common Stock

WAR PRODUCTS

MAKING

NOW

.

s

Corporation

;

inventory

The

Resistoflex

illllS

IfllMfe

situation wasn't bad.

you

things you would be carrying on
in
depression
and
prosperity
alike.
They do not offer depres-

,

757

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4412

•yolume 162

it

and

is these

metals which are

the most unstable and hence more
suitable

for

little

a

an

stable

"end

lead

appears

product" of the

heavier

is

It

whether

be used since it

could

be

disintegration.

doubtful

elements.

to

un¬

Secre¬

tary Stimson has hinted that re¬
search

with

elements

other

than

uranium has been undertaken, but

commercial

no

tained

as

results

were

ob¬

The section of the

utility indus¬

use

of gas, for

for heat¬
ing boilers, etc. (now largely pro¬
conservation measures)

hibited by

might be restored since it would
no longer be so essential to save
our gas resources.
Manufactured
gas, usually more expensive than
natural gas, might face difficulties. '
A
be

.

,

more

the

effect inay
reluctance of

immediate

increased

Congress

yet.

The

wholesale industrial use,

to

authorize huge ex¬

penditures for new hydro-electric
developments, under the guise of
navigation
improvement,
flood
control, "social improvement of
backward areas," etc. The huge
,

try which

may

be most "vulner¬

able" might be the gas
and

distributing

producing

companies,

in-

facilities might
in the
new era.
Congress, in any event,
will apparently control the com^
mercial, development of the new
power-source if and when it is
dams

Private industry
alone. cannot do it and Govern¬
provide

jobs.,

ment must.

Chairman
Mr.

.

Granik:

Nathan./

[Applause.]

Our

Thank you,
time is up.

and

power

become' "white elephants"

commercialized.

THE COMMERCIAL & FINANCIAL CHRONICLE

758

Calendar Of If

officers

will be conducted by members and
to

statements

were

tration

ago,

•SEC.

preferred
stock (par $50) and 70,876 shares of com¬
mon
to be reserved for conversion of the
preferred.

-.i

-

issue of Aug. 9.

Details—See

company is offering 12,new
preferred in ex¬
preferred outstanding on
the basis of two shares of 4Va% preferred
for one of 7% preferred with a cash ad¬
justment on dividends,
The balance will
be offered to holders of common stock at
the rate
of one share of preferred
for
each six shares of common.
The subscrip¬

Offering—The

312

change

SATURDAY, AUG. 18
J. NEWBERRY CO. on July 30

J.

filed a

registration statement for 100,000 shares of
(par $100).
The dividend
rate will be filed by amendment,
Details—See
issue
of
Aug.
2.

preferred' stock

Offering—The price to the public will be

price will be filed by amendment
Although alj of the 42,526 shares are to be
offered to common stockholders, the hold¬

The underwriters are
expected to offer to holders of the 50,986
shares of Series A 5% preferred stock an
opportunity to exchange such shares for
the new preferred stock on a share for
share basis with adjustments.
Public of¬
fering of the unexchanged portion of the

of

ers

of

waived

common

exchange offer to preferred stockhold¬

Underwriters

Co.

&

has filed

a

X

.

ARIZONA
ELECTRIC

CO.

GAS

&

on

for

statement

istration

shares

12,000

of

$50.

outstanding preferred shares and are being

4.75%

new

preferred

stock

ferred

on

unissued

public
.

will offer the
exchange for its

in

at

for

will

sold

to

the

to

the

be filed

to

basis.

share

them

be

offer1

will

price

a

cumulative pre¬

share

a

shares

who

underwriters

2.

Aug.

company

outstanding 6%

presently
The

of

issue

is

headed

—

by

Curtis and

sold by James C. Tucker, President and
Director, the founder of the company.
Details—See issue of Aug. 9.

Offering—The price to the public will be
tiled by amendment.
Underwriters—Central Republic Co., Inc.,
heads the underwriting group.

SATURDAY, AUG. 25
CONSOLIDATED

&

4%%
MOHAWK PETROLEUM CORP. has filed

account

thfe

for

issue of

Details—See

-

and are being sold
of certain stockholders.

and outstanding

convertible

cumulative

filed

ALLIED STORES CORP. has

of

preferred

Aug. 9.

Offering—The offering price to the'pubis $20 per share.

Underwriters—The principal underwriters
&

,

*

200,000

-

F.

Yantis & Co.,

S.

STORES

COLONIAL

INC.

has

cumulative preferred stock,
$50.
Details—See

4%

a

series, par

issue of

holders of its 52,478 shares of 5% cumula¬
tive

preferred

such

the

shares for

share

basis

shares

of

under

the

additional

privilege of exchanging
shares

new

plus

on

share for

a

cash

payment.
Any
preferred not issued
exchange offer plus the 7,522

the

a

new

shares

will

be

sold

to

the

un¬

derwriters to be offered to the public at
price to be filed by amendment, h

Underwriters—The underwriting group Is
headed by Hemphill, Noyes & Co., First

statement

conversion

has filed a registra¬
100,000 shares of 30-

registration
statement
for
$6,000,000
sinking fund debentures, due Sept. 1, 1960,
and
190,000 shares of $2.25
cumulative
a

preferred,

par $50.
issue of Aug. 9.

Offering—The

public

product sold by the
company is the Sun-Kraft ultraviolet gen¬
erator

designed primarily for home use.
Offering—The price to the public is $5
per share. In addition to the 90,000 shares
which

shares

company in

to

are

exchange,

be

on

price

offered

Class A
.

to

no

holders

of

a

by

value stock.
shares and the

of

the

of

outstanding
The

remain-

unexchanged

shares will be sold" tci the underwriters and
offered' to the public at a price to be filed

by

amendment.
The
$5 represents, the
difference betwen the par value of the new
stock and the $45 redemption value of the:
Class A stock.
■
xx • X

Underwriters—The

Underwriting group Is

headed by Paul EC. Davis & Co. and Union
Co.

Securities
?

INTERNATIONAL
filed
000

debentures,
shares

of

has

is

due Aug. 1,
common

shares

for

sold

CO.

registration statement for $1,000,
12-year 5% convertible sinking" fund
a

common1

who

FURNITURE

the

are

1957, and 100,000
stock, par $1.
The

account

described

and

issued

as

of

Philip
president

being
W. Pelts,
and. sole

are

share holder; of the company.
Details—See issue of Aug. 9.

Offering—The
the

debentures

is

public
100

offering

and

of

are

tne

puonc,

preferred

be

to

are

stock

100,000

owned

shares

of

by

the

common

to be retired and cancelled.

Proceeds—Net

proceeds

to

the extent

of

will be
used for general Corporate
^x^X-'x/xxyxx
Underwriters—Floyd
D.
Cerf
Co.
is
named principal underwriter.
Registration Statement No. 2-5857. Form
S-l. (8-8-45).
'
purposes.

BROCKWAY GLASS CO., INC., has filed
registration statement for 10,000 shares
of 5% cumulative preferred stock, par $50.
a

Address—1947

Seventh

Avenue,

Brock-

way, .Pa."V xXxxXx'x/xxXx xx';X^x/xxx
Business—Manufacture and sale of gen¬

of

line

eral

glassr containers.

Offering—The price to the public is $50
per share,'
securities to

of

will

company
residents

the

of

the

the

offer

the

and others

City

of

establishment

in

the

by
to

as

The

Okla.,

Muskogee,

at

company

persons

living

who

in¬

are

of a glass
Muskogee, as
in the vicinity

price

of

the common

Blosser, Chicago,
is named principal underwriter.

Proceeds—The

for

and

proceeds

will be

used

to

and buildings at Muskogee,
and equipment in the plant

purchase land
the machinery

repairs

and
,

.

—

for

additional

work¬

■

There

are

under¬

no

Registration Statement No. 2-5858.

Form

(8-8-45).

S-2,

CONSUMERS

COOPERATIVE,

has

filed a registration statement
for 17,500 shares of common stock, par $20.
Details—See

issue of Aug,

9.

Offering—The. price is $20 per share.
Underwriters
No
underwriting.
Sales
—




complete

Dean

TUESDAY
CORP.

AUG. 28

has

filed

registra¬
tion statement for $5,000,000 15-year 3%%
debentures
and
100,000
shares
of
5%
cumulative preferred stock, par $20.
The
offerings of the debentures and preferred
stock are independent offerings, which may
but

need

not

be

made

a

concurrently.

Address—120 South LaSalle Street,
cago,

HI.

Chi¬

,/■ >.xx Xxxx"''

•■■•/;

Business—Building material business.
Offering—The public offering price

of

the debentures and preferred stock will be
filed by amendment.

Proceeds—The net cash proceeds from
sale of the debentures and
preferred
stock will be used to redeem the outstand¬
the

12-year 3%% debentures due July 1,
1945, at 102 Va and the balance added to
the general funds of the company.
As of
April 30, 1945, there wefe" $2,757,000 of
the- 3%%
debentures
outstanding.
The
company has in contemplation-plans for

modernization,
expansion- and
ac¬
quisition of manufacturing and
mining
facilities, which it is expected will reduce
costs, .provide for new developments, in¬
crease
production of
existing and new
products and improve working conditions

and

East

with

heads

names

of

the

Davis

&

has

CORP.

filed

GAS

Pleasant

other

and

registration

a

445,738 shares of common

Address
N.

—

South

Y.

Hudson

with

the

sold

be

stock

at

New York,

&

Co.,

Gilcrease

CO.

for

has

filed

stock, share for share, for the newg
preferred.
The underwriters have agreea
to purchase any of the 250,000 shares of

West

cipal underwriters.

Street, San

15 filed
shares

the / latter

of

ment.

X■

•

s

the

public

is

proceeds to be received
will be used to acquire

company

leases

new

Oil

crease

oil

and

of

Co.

New York,

Louis, will manage

filed

CO.

N. Y.

-

Texas,
xX;/x

is

Gil-

Broadway,

165

others

to

be

filed

by

registration statement for 333,333
stock.
x /v.

a

shares of

common

Details—See issue of April 26.

Offering—Price to the public is 30 cents
x-x.vr,.,x..vv.■■
x;-.

per share.

sinking

3%

cumulative

preferred

The dividend rate
ment.

UNDETERMINED

x--

issue

of

We

below

present

a

list' of

issues

twenty days or more ago, but
offering dates have not been
mined'or

share

a

share

for

unknown to

are

The
public offering
by amendment.

account

of

and

Car &

Foundry Investment Corp.

Details—See

er

of

Underwriters—None
AMERICAN

statement

istration

for

$113,825,000

reg¬

first

mortgage bonds series due 1975. The bonds
will be sold at competitive bidding and the
rate

interest

will

named

be

by

the

and

Address—212

Avenue,

West,

public

bonds

and

Underwriters—The

will

names

be

GENERAL

has filed a
100,000 shares
of cumulative convertible preferred stock;
par $100.
The dividend rate, will be filed
by amendment.
Address—-200

Building,

INC.,

MILLS,

statement, for

Chamber

of

Commerce

Minneapolis,

Minn.
Business—Production of flour,
and

package

feeds.
to

common

stockholders

rec¬

Sept. 7, 1945, to subscribe at the rate
one

share

of

the

new

convertible

ferred for each 20 shares of
at

of

a

price

to

be

filed

common

by

pre¬

stock

amendment.

head®
t

of

May

on

reserved

common

•

■

oil wells.

;

17.
:;x'Xxv V
and development
'

..

share.

i

.

underwriter

The

wararnts

shares

of

for

the

will

receive

purchase

for

common

each

of

15.000

in the offer*
price of 45 cents per share.
/
stock sold

common

Ing at a
Underwriter—Tellier
HAMILTON
filed

&

Co.

registration istatement

a

of

/

\

Registration Statement withdrawn Aug. 3.

reserved

HOMES, INC.

July

Oft

17

common

6tock,

for

27

150,000

par'$l^ of

shares
are
to W offered
the public and 50,000 shares

to
for

50,000

the

conversion

common

stock

of. warrants*
purchase war-*

-

,

Details—See

issue

of

Aug.:'';'2.'1 "xx:X; ';x

Offering—The common stock is being
to the public at $5.75 per share.

offered

The common stock
to

purchase

before

ANCHORAGE

July

on

100,000

its

presently

Alstyne, Noel & Co
underwriting group, with th»
to be supplied by amend
x:Xxxx Xxx'/X'-xxxx

the

CORP.

RADIO

shares

poses

warrants

shares

Aug. 1, 1950.
to sell 30,000

at
:

entitle holden

$5.75

per

share

The

of

company pro-#
the warrants to

filed

underwriters,, 15,000 to Adolphe A. Juviler'•

shares

President
and
Treasurer,
and
5,000
to
Percy L. Schoenen, Vice president and-Sec*
retary, at 10 cents each.
) <
Underwriters—Van Alstyne, Noel & Coi
is principal underwriter,
:
X./

a
registration statement for 505,000
of Class A capital stock, par $1
250,000 shares of Class B stock, par
10' cents.X.x;-X'.V•xXX;.; XX.-//
Details—See issue of July 26.
;
Offering—There is to be presently of¬
fered to the public 250,000 shares of Class
A and 50,000 shares Class B to be offered

and

of

units

in
:

10

shares

of

Class

A

and

2

shares'of Class B at a price of $60.20 per
unit.'--.
Underwriters—Andre de Saint-Phalle &

stock, no par.

a

amendment.

-

Detailsr—See issue

-

■/ xXx

■

..

issue of July 5. x
" ;•
,t
Offering-s-Company is offering, to hold*

registration statement for , $3,640,000 first mortgage bonds due Aug. 1,
1970." The interest' rate" will be filed by
filed

'u. ;;.x: •'

;■

Details—See

BROOKLYN BOROUGH GAS CO. on July

10

Coj

MARICOPA RESERVOIR. & PO\VF.R
June 29 filed a registration
statement
$3,343,500 4% "income" debentures- du«
May 1, 1970, and $4,458 shares of common
on

for

the underwriting group.

Co., heads

-

of July

19.
the public

Offering—Tlie price to
will
by amendment.
Underwriters—The bonds will be offered
for sale
at competitive bidding and. the
names
of
underwriters filed by amend¬

of $3,343,500 3%
income bonds due
Oct. 1, 1959, units consisting of $750 of
4%'
income bonds and one" share of its
com*
ers

.

stock, in" exchange for each - $750'
outstanding income bond, in connection
with the plan of reorganization.
•

mon

Underwriters—The Dunne-Israel Co.

^

be filed

ment.

MONONGAHELA" POWER
30

filed

000,000

a

CO.

on

registration statement

for

June
$22

*

first

mortgage bonds, due 1975
and 90,000 shares of cumulative preferred

stock, par: $100.

BROOKLYN BOROUGH GAS
filed

a

shares

stock

registration
cumulative

will

be sold

CO. July 11

for

statement

stock.

preferred

at

15,000
The

competitive bidding
amendment.

and the dividend rate filed by
Details—See issue of July

19.

The Interest and dividendwill be filed by amendment.
*
Details—See issue of July 12.
Underwriters—The names of underwrite
ers will be filed by
amendment.
rates

Bids
for

Lie

Invited—Company is inviting
purchase

of

f

^

; :

VENTURES, LTD.,

which

8.

<

Offering—The company proposes to issue
warrants

•

registration statement for 1,500,*
($1 par) and
share purchase warrants

purchase

filed

by amendment.
Registration Statement No. 2-5864. Form
s-i.
(8/n/45).

registration

issue of March

.of others

merit,

stock

which,, with premiums, will require
$140,803,720. The company does not pro¬
pose to retire its 547,788 shares of out¬
standing $4.50 preferred stock.
The com¬
pany will
retire a total of $113,825,000
outstanding first mortgage bonds as fol¬
lows:
at" 103 Vz,
$18,925,000 3V*% series
duo: 1965;
at
106%,
$55,153,000 3%%'
series due 1970; at 105%, $21,832,000 3% %
series due
1966, and at 108, $17,915,000
3% %
series- due 1969.
The $5 preferred
stock will be redeemed at $105 per share.

x

Brothers

group.

common

rants.

aames

the sale of
bank loan
of treasury
be used to retire outstanding
191,924 shares of $5 preferred

will

a

being sold by stockholders.

aeads

will

,

r ;

.

Offering—Price to the public is 60 cent®
per

Underwriters—Van

Offering—The price to the
filed by amendment.
Proceeds—The proceeds from
the bonds, with a $15,000,000
and approximately $12,000,000
funds

of

and

Business—Public utility.

b®

*

being sold .for
stockholders,
?
f
19.
r
to the public will

Business—Exploration

ihare

Michigan

will

Details—See issue of May

Offering—The debentures will be offerer
it 100 and the common stock at $7.50 pe?

Mich.

price

5%

Details—See

suc¬

cessor bidder.

Jackson,

filed

300,000

a

ENGINEERING CO. on FeV

registration statement for $3,
15-year sinking fund deben
tures
due
I960
and
200,000 shares
oi
common
stock.
Of the stock registered
132,000 shares are issued and outstanding
27

OIL

a

shares of

THURSDAY AUG. 30
filed

ex-.x?

of .July

and -200,000 shares
for warrants.'
'

2,000

mentioned.

(8/10/45).

CO.

filed

200,000

Foundry

.

POWER

new:

Share?

000 shares of common stock

to subscribe to the common stock of the

&

underwriting

GASPE
8

; :

12.

The selling stockholder, American
Investment Corporation,
proposes to offer the warrants for sale to
the public commencing approximately Aug.
1, 1945, with the price to bei determined
from day to day by market sales of the
warrants.
xxXX"
:/x;
X x/X
X,xx

Registration Statement No. 2-5863. Form

ord

July

company.

Car

Chicago

of

of

issue

Offering—The warrants entitle the hold¬

by

CONSUMERS

x.

are

certain

Underwriters—Lehman

the

and are being sold by American

standing

the Equitable Life Assurance So¬
of the United States requiring $3,890,625, and the balance will be added to
the company's general funds.
Underwriters—The underwriting group is

S-l.

the

underwriter,

outstanding

the

ACF-BRILL MOTORS CO. on June 30 filed

and gas.

Inc.,

for

not issued under the

a
stock

the new

and

us.

registration statement for 190,464 % war¬
rants.
The warrants are issued and out¬

& Co.,

basis

cash adjustment.

of

Offering—The price
be filed by amendment,

fund debentures due

G. Becker

j

.

out- /

EVERSIIARP, INC., on July 9 filed a
registration statement for 32,500 shares of
common stock, par $1.
Shares are issuedl

whose
deter¬

has

ciety

A.

-Aug.
2.
the
85,505

of

preferred, with

named principal

whose registration statements-were filed

part to the prepayment at 103%
the $3,750,000 3%% promissory notes

by

par).r

amend¬

Underwriters—Goldman, Sachs & Co. is

a

headed

($10

standing shares of 6% and 7% cumulative
preferred stock may exchange their stoclfe

filed

plied in
held

stock

will be filed by

...

Details—See

ers.

Offering—The price to the public will
be filed by amendment.
Proceeds—The net proceeds will be ap¬
of

conv-

on July 28 filed
registration statement for 100,000 shares

a

DATES OF (OFFERING

1965.

Business—Oil

The

named.

pany proposes to market its own securities.

on

registration statement for $5,000,000

a

20-year

St.

the entir®

the remaining;
14,495 shares are to be sold to underwrite *

filed

REFINING

Ullrich.

L.

COVENTRY GOLD MINES, LTD. on AprlA
21 filed

Details—See issue
&

,

change offer together with

Registration Statement No. 2-5862. Form
(8/10/45).
OIL

21.

the sale of

Offering—Holders

S-l.

ASHLAND

(par $10).

Underwriters—William

■i

exploration

properties,

Registration Statement No. 2-5868. Form
S-2. (8-13-45).

' XXX.- :;XX vx
by amend¬
XX .£>■ :/X"
'Xxx:,X;' X.

V

stock

isSue of June

Offering—Price to. the public is given as
$35 per share.
-xx, x;'..,.x y;

of

and development work, etc.
Underwriters—The
underwriter

cumulative

$1.60

be

registration statement for 25,000

a

common

Details—See

CUDAHY PACKING CO.

the

to

proceeds from

Underwriters—To

>■

x

CONTAINER ENGINEERING CO. on June

Underwriters—None

Crockett

price

Proceeds—The

by

a bank loan of
together with treasury funds
will be used by Niagara to make a contri¬
bution to its subsidiary, Buffalo," Niagara
& Eastern Power Corp., in the amount of
$63,000,000 to be applied to the retire¬

ment

in exchange for out¬

preferred not issued

standing preferred. Company will call any
the old preferred at $105 per shar®
plus accrued dividends.
/
Underwriters—Kidder,
Peabody & Co.
and First Boston Corp. are named prin¬

Foundation.

$40,000,000

preferred stock. ;'

'

their

a

shares

143,659

the shares registered

$12.50 per share.

of

Co.

V

June

on

Details—See issue of June 14.
Offering—Company is offering the hold¬
of the 121,938 shares of 4%% cumulative convertible preferred stock to exchange

are

Address—102

together

Consolidated Edison

of

common

CO.

statement for 250,000

registration

a

shares of preferred stock ($100 par). Divi¬
dend rate will be filed by amendment, 'x

Business—Oil business." *

to

CREDIT

COMMERCIAL

filed

-

,*

Antonio, Texas.

proposed sale by
Niagara Hudson of its holdings of 41,515
shares of preferred stock in Central New
York
Power
Corporation, 201,500 shares
of

Of

Thomas

from

proceeds

OIL

statement

Offering—The

common

Simonds

being sold by the registrant
and 30,191 shares are issued and outstand¬
ing and are being sold on behalf of the

bidding and the price to the
will be filed by amendment.
Proceeds—The proceeds from the sale of

Central

OSAGE

113,468

The

x ;

issue,; /;X';/:'x;x^

stock.

A

1945.

ibanged pursuant to the exchange offer.

proceeds go to the selling

(8-13-45).

VALLEY

i'

wlli

Offering—Company proposes to invite
proposals for services to be rendered to
it in obtaining acceptances of the exchange
iffer of new preferred stock for old pre¬
ferred and for the purchase from it of
mch of the 11,972 shares as are not ex-

„

registration

■

-

the

Mich.
x
*■
Registration Statement No. 2-5867. Form

and are
Corp.

issue of Jan. 4,

Details—See

materials,

Detroit,

Business—Public utility.
are

West,

panels, dead

wrapping

Underwriters—Baker,

Poughkeepsie,

Road,

Avenue,

stockholders.

statement

stock.

a registration
statement
of preferred stock, cumu¬

($100 par).
The dividend rate
be filed by amendment.

&

Offering—The price to the public is $25
share.
1
.

:

filed

28

for 11,972 shares

ers

fibre products for

industry,

Proceeds—The

S-l,

|

POWER CO.

&

of

per

ELECTRIC

&

shares are issued and outstanding
owned by Niagara Hudson Power

Co.,

group,

Registration Statement No. 2-5859. Form
(8-9-45).

felt

of class
HUDSON

Wood

company.

-

-

E.

Rouge, Mich.

ener

al¬

(8/10/45).

Harold

LIGnT

lative

etc.

,

CENTRAL

&

■

Address—1721

-

and

Co.,

Business—Trim foundation

loy steel forgings.
•
Offering—The price to the public will
be filed by amendment.
Proceeds—The proceeds to go to the sell¬
ing stockholders.
Underwriters—Shields
&
Co., Chicago,
heads the underwriting group.
Registration Statement No. 2-5861. Form

foods

H.

underwriting

amendment.

S-l.

the

automobile

carbon

&

(8/11/45).

River

Boulevard,

'

Business—Manufactures

F.; Rothschild

PRODUCTS, INC., has filed
registration statement for 28,960 shares
of common stock, $5 par value. The shares
are issued
and Outstanding and are being
sold by five stockholders, including 18,960
shares by Lawrence O. Turner, President

being sold

are

Jackson

111.

Chicago,

L.

FABRICON

registration statement for 120,000 shares
common stock, par $1.
The shares are

80

Hopwood,

a

FORGING S CORP. has filed

outstanding and
by certain stockholders.

the company to meet anticipated

Underwriters—Paul

Chicago,

&

SATURDAY SEPT. 1

of

ing

to enable

S.

Witter

S-l.'

WEDNESDAY AUG. 29

Address

Inc., Allison-Williams
Cadwell Phillips Co.,

amend-

by

/:x:--xx;/

Dec.

in
are

Co., ano Woodard-Elwood & Co,
Registration Statement No. 2-5866. Form

(8-9-45).

issued

Co.,

be

may

capital.

underwriters

'

CENTRAL OHIO

Dain

;

STANDARD

The

ment.

Barney & Co., Union Securi¬
Corporation, Watling, Lerchen & Co,,

ties

be

CELOTEX

M.

Jaffrav

treasury
a surplus

capital.

A-2.

writers.

post-war requirements.
CHICAGO

to

&

also

f

/

:

filed

be

Underwriters—To

the

Co.,1 Smith,
with

Underwriters—D'Antoni & Co., New Or¬
leans, is the principal underwriter.
!■
Registration Statement No. 2-5860. Form

Brockway, Pa.

the

stock $8.25 per share.
Underwriters—Straus &

INC.,

used

C.

working

—

Offering—Price to public to be filed bfy

19

to

,

the

common

These

estate.

to

the company to the estate of
Norton in exchange for 100,000

of

shared to the

adjustment
its

par

ing' 16,500

by
D.

shares

of

oifered

share for share

a

basis plus a payment of $5
company and with a cash

dividends?

shares

10,000
issued
Eben

be

to

are

Underwriters

the debentures will be filed by amendment.
Of the 190,000 shares of $2.25
preferred,

173,500

preferred stock

of the preferred.

ing capital.

offering

for

Business—Principal

plant

Details—See

be

added

Ashmun,
& Co., Frank & Belden, Inc.,
Goldman, Sachs & Co., Hemphill, Noyes &
Co., Kalman & Co., Inc., Kuhn, Loeb &
Co., W. C. Langley & Co., Lee Higginson
Corporation, Merrill Lynch, Pierce, Fenner
& Beane, Park-Shaughnessy & Co.,
Piper,
J.

public

27

and 200,000 shares of common reserved for

well

HOUDAILLE-HERSHEY CORP. has filed

Co.,

competitive

terested

TUESDAY, AUG. 21

convertible

will

Offering—The shares

MONDAY AUG.

a

Boston Corp. and Kidder, Peabody & Co.

subscribe

*x

•

proceeds

be

Proceeds

increase

Read

the development of mineral
properties
Manhattan, Nev., and balance for work¬

ing

ance

filed

Aug.■,9V:-''';;/Xx'XXXxv
Offering—The company is offering to the

■

for
at

Inc., and Dempsey

$110,000 will be applied to the redemption
outstanding class A stock and the bal¬

registration statement for 60,000 shares of

to

held.

of

MONDAY, AUG. 20

i

right

to

Dillon,

plant at Long Point Dome,
Fort Bend
County, Texas; for construction of a car¬
bon-black plant at Clemens Dome, Texas;

Co., both of Chicago.

cent cumulative convertible
a reg¬

shares of
cumulative preferred stock, par $100.
The
dividend rate will be filed by amendment.
Details—See issue of Aug. 9.
::
^
Offerings—The offering price to the pub¬
lic will be filed by amendment.
It is ex¬
pected that arrangements will be made
with the underwriters whereby holders of
the company's outstanding 5%
preferred,
par $100, will be afforded an opportunity
to
purchase the new stock by tendering
their old stock in payment for the new.
Underwriters—The underwriting group is
headed by Lehman Brothers.
for

statement

share

Proceeds—Net

S-2.

SUN-KRAFT, INC.

istration

the

share.

funds

expansions.

Underwriters

record

Subject to the prior
rights of holders of subscription warrants,
officers of the corporation, who are not
directors, and employees will be entitled
to subscribe to 21,287 shares at $9.75 per

lic

tion

SUNDAY, AUG. 19

1945,

of

per share for additional shares
basis of seven-tenths of one share

each

for

par $20.
Details—See issue

are

Aug. 9.

Offering—The price to the public will be
filed by amendment.
Underwriters—Blyth & Co., Inc.

3,

stock

common

Sept.

p.m.

amendment.
will

general corporate
funds
and
used, among other things, to finance future
plant

CO. has filed

BISCUIT

stock,

registration statement for 120,000 shares
of common stock ($1 par).
The shares are

a

issued

the

for

registration statement for 60,000 shares

a

& Co.

Loewi

on

its

at 3

■

company's

crude

$9,75

and

group

Jackson

Webber,

Paine,

$100.

par

amend-

by

underwriting

The

stock,

preferred

cumulative

The shares constitute all of the issued

jnent.1
Underwriters

at

of

reg¬

5%

Offering—The

of

Sept.

on

a

POWER

July 30 registered 65,000 shares of 4.75%
cumulative preferred stock, Series A, par
Details—See

of

I

used

holders

Pierce,
under¬

CO.

is

Beane

writer.

the

Lynch,
principal

Merrill

—

heads the underwriting group.

CENTRAL

sale

expire

Proceeds—Proceeds

ers.

,?enner

&

shares

73,872

preemptive rights in order to permit

their
the

issue will be made.

Peabody

7%

for

tion

filed by amendment.

Underwriters—Kidder,

the

of

shares

and

will

1945.

Offering—The company is offering to the

convertible

cumulative

4%%

on

Warrents

sulphur.

23

BRYANT, INC., has filed a regis¬
statement
for 42,526
shares
oi

LANE

grouped according to dates
which registration statements will
in normal course become effective, un¬
less accelerated at the discretion of the
days

Business—Production

THURSDAY, AUG.

registration
filed less than twenty
whose

issues

of

;

FILINGS

NEW
list

prospective members.

JEFFERSON LAKE SULPHUR CO., INC.,
filed
a
registration statement
for
167,000 shares of common stock, $1 par.
Address—1408
Whitney Building,
New
Orleans, La.
has

ytirucFlotations
eSw

the

bonds

bids

and stock*

*

\ I J$u1

.Volume 162

,§pltS'J*jjt|||

hXl.

the bids.

in

UTILITIES

CO.

on

registration statement for
4-6 shares of common stock (par

223,351

a

..v'Y:.;s''

$5),

issue : (of
Aug.
2.
'
Offering—Price to the public will be filed
by amendment.
^
Underwriters—To be filed by amendment.
«'

CO., INC.,

registration

a

shares

of

shares

issued

are

represent

July

on

26

statement for 30,500
stock, (no par).
The

common

Full

and

outstanding and do
financing.

new

Employment And

issue
of. Aug.
2.
Offering—The price to the public will be
filed by amendment.
Details—See

■;&;

"! Details—See

GAS

ROCKLAND
filed

not

MONTANA-DAKOTA

July 25'filed

;

THE COMMERCIAL & FINANCIAL CHRONICLE

up to 12 noon (EWT)
Broad Street, New York
rate and dividend rate

[on Aug. 22 at 50
|City, the interest
be specified

|j|l||0$ r1^'- jlfeliff

Number 4412

jBIds will be received
Ito

'

Underwriters—The
ers

principal

Butcher & Sherrerd,

are

Chas.

W.

Scranton

&

underwrit¬

(Continued from first page)
and maximum

Corp.

V

employment in the

ment

United States.

;

i

ST.
! NEW
CORP.

YORK

June

on

Statement

'bonds,

for

due

bonds

etock

GAS

&

first mortgage
150,000i: shares of
Interest rate
dividend rate on preferred

and

be

stock.

determined

Details—See

will

bonds

and

bidding

competitive

and

be
of

names

underwriters will be filed by amendment.,,
v? Issue Disapproved—The New York P. S.
"Commission on July 30 disapproved of the
proposed

refinancing.

Estabrook & Co.,

Details—See

CORP.

July

on

statement

for

stock, par $1.

common

of

issue

:

A

•

*

2.

Aug.

Underwriters—None.

20

247,361
.

'

-

-

,

Offering—Company is offering its combum stock to stockholders of Triumph In¬

Inc.,

Triumph

as

the basis of two shares

on

«f Triumph common,

$2 par, for one share
Ansonia Electrical Co., a wholly-

of Noma.
owned

subsidiary

*hares

of

the

of

Noma,
stock

common

acceptance of the'offer by the holders of at
of the stock of Triumph within
time period designated.
The result of
the exchange offer, when effective, will be
to convert Triumph into a controlled sub¬
sidiary of Noma as of July 31, 1945, .not¬

withstanding

the

fact

until

the shares
wilt be

of Triumph

the order

to

recorded

•

CO-OP

K.

O.

for

ment

filed

SYS¬

WELDING

registration stateshares,
par
value $1,000
"participating
members

as

a

1%

;

Details—See

Offering—The
100

the

of

par

or

of

and

trust

several businesses

the

PACIFIC GAS
a

of

shares

are

ELECTRIC

&

stock

common

CO. on May

owned

The

$25).

(par

the North American

by

which

Awarded

436.76 7/10

"iAy'-K

10.

filed

on May 23
refused to approve
stating that competition had "been

POTOMAC EDISON CO.

on April 19 filed
registration statement for 63,784 shares

preferred stock

(par $100).,

I

with

1

shares

warrants.
the

ferred

dividend

each

case

cash for each share of 7%
stock .exchanged*

pre-

a

Underwriters

adjustment

The

,

f

talned Alex. Brown & Sons

k

Bger

—

to aid it in

in

has

company
as

re-

dealer-man-

obtaining acceptances of

[ the exchange offer.
| 1 PUBLICKER INDUSTRIES

\

28 filed a registration statement for 100,000

I

shares

Noel

of

cumulative

preferred

stock

I

*

issue

of

Aug.

2.

[ ' Offering—The offering price to the
[ lie will be filed by amendment.
I
Underwriters

—

Merrill

Lynch,

pub-

...

statement

filed

on May 31
for

a
shares

990,793

,/

100.

:

Alstyne,

.

Noel

-

&

Co *

SOUTHWESTERN
CO.

April 18 filed

sets up a

ELECTRIC

registration

a

SERVICE

due

statement

mortgage bonds, 3%%
8,500 shares 4%% cumu¬

1975;

(par $100)

and 128,-

935 shares of common

(par $1).
amendment filed Aug.

Through
amounts

shares

10,150

the

9

changed to $1,550,000 bonds,

were

preferred*., and

of

shares

161,180

share).

.

--

„

,

Details—See issue of. April 26.

Offering

Holders

—

stock

jommon

the

of

.

outstanding

Southwestern

of

Public

will be

Co.

given the right to sub¬
scribe to the 128,935 shares of common at

3ervice

western

share of common of South¬

one

and

shares

Public

of

Service.

price will be filed by
public offering price of

The

unsubscribed

any

five

Southwestern

of

subscription

amendment.

bonds

each

for

Electric

jommon

and

common

of

the

preferred stock will be filed by

amendment.

is inviting bids
Republic National Bank,
1309
Main Street,
Dallas, Texas, up to
10 o'clock (CWT) Aug. 24 or by company
at 30 Broad Street,. New York, up to
11
o'clock (EWT) the same day, for the pur¬
chase of $1,550,000 first mortgage bonds.
Bids
be

Invited—Company

received

for

the

by

purchase of 10,150

shares of

and

time

with

the

is

the

ditlonal
tered.

sole

100,000
The

acquisition of 54%

of Seatex Oil Co.,

Bennett & Co.,

underwriter

shares

balance

of

to

as

an

common

ad-

regis-

of

530,823 shares of
stock being registered have heretofore been
Issued to Bennett & Co., Inc., in exchange

ROBERTS

TOWING COMPANY on July
a registration statement for $500,serial 4 V2 % equipment trust certifi-

| 11 filed

| 000

I, cates.

.

,

Offering—The price to the public of the
different
ment.

I

given

series

The
as

will

average

be

filed

price

to

by

filed

on

Of the total

of March

issue

29.

"

,

blow
>

Offering—-The initial offering price is $5
share.
Of the 133,000 shares being

per

offered for account of company,

be

offered

to

Shares

20,000 are
at $4.25 per

employees

not

subscribed

to

one

for

and

warrants to subscribe
share of common stock, at $5 per

share, on or before Dec. 31, 1948,
Em¬
ployees will receive such warrants for each
Eive shares of common stock purchased.
Underwriters
named

Floyd

—

principal

D.

is

Cerf

is

Co.

underwriter.

v.--/

K.

John

Cunningham,
Nordman

Co.,




place, it is very dif¬

April 10,

1945.

said

is

it

In its opinion the
satisfied that the

in

correct the deficiencies

substantially

cited

cept

notice

of

the

relating

to

those

VIRGINIA
June

24

Inc.,
St*

RED

filed

a

Details—See

LAKE

proceeding

MINES,

LTD.

capital

stock,

par

on

$1

inflation, that
era

and

of

States

Aug.

2.

funds.

Underwriters—Willis E.
York.

were

we

no

was

in

a

new

had solved the prob¬

of prosperity.
But we had
not, and the reaction to inflation

produced the worst depression we
ever had'.
That was an inflation
of

private credit. The same thing
happen from an inflation of

can

Government credit.

Burnside

&

ties, then

have

you

to build

none

for 10 years

is

thereafter, and there
depression in the whole build¬

a

ing industry.
is

spent

If too much

money

consumers'

goods,
then there is not enough capital
on

build

enough

industries.

new

purchasing,

If

too

the

or

con¬

struction

of capital is overdone.
Prices and wages must be kept in
too

If prices

adjustment.
millions

proper

high,

are

are

unable

to

buy and all business activity falls
off.

If wages

too high com¬

are

pared to prices, there is no incen¬
tive on the part of anyone to
start

businesses

new

risks

of

or

increased

take the

production.

There

are a dozen economic forces
which may throw the whole ma¬

chinery out of balance.
Governspending has a place, but it
is a
minor
place.,
We should
spend more on public works in
ment

hard times and less in good times.
But

spending is only

one factor,
important factor.

and not the most

It is

dangerous drug.

a

of

dose

mercial
cratic
I

it

system
of

believe

Economic
it

destroy

can

form

and

An

over¬

our

com¬

demo¬

our

government.!

we

should

set

up

an

Planning Organization,

ought to consider all
factors

and

Government

pos¬

recognize
is a
•
'■

that

spending

cure

that may kill.
As far as immediate

post-war

employment

and

workers

G.

of

I.'s

war

is

concerned, this Wag¬
Employment machinery
could not get going in time to
accomplish anything anyway.
Full

Freedom to Individuals and

Business
The most necessary and imme¬
diate step to restore prosperity is
to restore freedom

to individuals

business.

You can't expect
enterprise to work unless it

is free.

(a)

We

should

26 and

force

the

OP A

to
adopt a much more liberal
policy for the reconversion period,
eliminating entirely non-essential

thousands

bring

into

of

the

small

new

business

of

in

increase

constant

the

That debt will be

WESTERN
INC.

on

for

ment

Co.,

A,

LIGHT

&

public

$320,000,-

filed

Details—See

CO.,

It is impossible
7,000,000 men can
against Japan,
and we still have about 8,300,000.
The Army actually spent $340,000,000 more in July than they
spent in July, 1944.
If millions

issue

for

sale

at

how

see

even

are

war

released in a few months when

the

Japanese

serious
ment

ends we face
of unemploy¬
perhaps temporary de¬
war

problems

and

pression.
(d) Most of the War Manpower
regulations should be abolished
that

so

get a job from
anyone else, and the employment
agencies should become service
anyone

can

agencies under State control,

co¬

ordinated by the Federal Govern¬
ment.

v. •

■

.

v.v

"V,'

(e) The OWI and many other
agencies should be abolished ex¬
cept to the extent that Nimitz and
MacArthur

want

them

for

use

against Japan.
(f) After some freedom of ac¬
tion is restored, the next essential
step toward full employment is to
enact

reconversion tax bill fix¬

a

ing definite reduced rates for the
reconversion period.

stary

that

both

It is

neces-

individuals

and

corporations know at once what
their taxes are going to be in 1947.
The present estimate of a $46,-

280,000,000 deficit (which does not
count
$2,000,000,000
of r subsidy
payments
and
$1,800,000,0Q0 of
more lending by the Export-Im¬
port Bank) is discouraging and
unnecessary.
With
those
ad1ditions

it is within

$5,000,000,000

of the record deficit of last
year,

when

we

front

were

war.

conducting

a

two-

;

A Reconversion Budget

!
A

reconversion

should
Congress and
should not exceed $20,000,000,000
a year in addition to
the tempo¬
rary aftermath-of-war expenses.
be

formulated

budget

by

If it goes to $25,000,000,000, as the
spenders want,
we
can
hardly
allow any reduction in the present

choking tax rates, and then you
don't get
In
we

employment.

more

the

Federal

regular

should allow for

a

budget

coordinated

of public works.

program

High¬

already provided for.
Butonly
those
public
works

ways

are

should

be

authorized

which

are

economically justifiable for their
own sake.
The theory that public
works are justified just because
they make jobs, or that they
afford any solution of serious un^-

employment, isn't so.
We should
arrange to go ahead with these
public works when private activ¬
ity falls off, and let
works

when

strong.
which

are

full

been

be

much

are

so

be

look

after the

war.

dislocation

help

There
saved

unsatisfied
for

reason¬

for

five

There

may

employment

some

to

money

many

demands that I

full

measures

studied

employment.

so

and there

other

many

should

create

has

r!v:;

.

There

on public
activity is

up

private

for

a

short

time, especially if the Army in¬
sists
real

that

all

controls

should

removed from wages

(b)

The

WPB

I believe
be

re-

early in 1946.

should

of

Aug.

the
after

2.

public
the

competitive

be

re¬

pos¬

sible.

but

They

are

are

inclined to do

so,

continually hampered by

on

its present

danger

from

five

Only

war.

whether

will

bonds

be
are

bidding.

Underwriters—To be filed by amendment.

10

to

we

ought

to

go

started

on

new

Unless controls
can

never,

housing,

get

farm

brain

a

ahead

with, that

Wagner bill which

Federal agency to put a

into

the

overall

activities of the Federal

machinery, reconversion machin¬ ment.

prevent

certainly

Now we

depressions.

tell
enough

we

can

about economic forces to

creates

we

after, the

then

feature of the

relaxed

later ^on,

years

have learned

the unreasonable demands of the

are

policy, but our
arise

will

Army and Navy,

by amendment."

Offering—Price to
filed by amendment,
offered

TELEPHONE

July 27 filed a registration state¬
$6,200,000 first mortgage bonds,
due July 1, 1975.
The interest

will be

essential 'men,

release

Secretary Ickes.

to

years

concerns

to

be used in the

for

which. will;

are

like the coal miners requested by

ably

articles

men,

who

30, should be immediately
The Army should be

forced

articles, providing adequate prices
essential

recon-

new

forbidden.

providing employment.

Government spending leads to a

debt.

drafting of
particularly men

<

Government Spending

rate

Offering—The offering price to the pub¬
is
60 V2
cents
Canadian or 55 cents

New

we

there

lems

Series

.

issue

depends on a lot of deli¬
adjustments
unrelated
to
Federal spending.
If you build
too many office buildings, theaters
and hotels as we did in the twen¬
cate

and

that

an

success

free

men

cannot

It is

infinitely complex machine and its

trying to avoid.
In 1929 I was
assured by some of the biggest
business

machine

Federal money.

on

in

us

The

essential in industry reconversion
as well as for war work between

Government

quired to relax every control

ex¬

registration statement for
of

shares

(Canadian).

United

bring

and

the warrants.

the

run

(c)

manufacturing needed goods and

amendments subsequently filed by the com¬
pany

faces

our

Federal

that money.
The economic

about the very depression we are

Order Action—The SEC on June 29
dismissed the stop order proceedings com¬
Commission

in

the

if

ner

judge just what is the
scale of economic activity.

up

Stop

menced

production.

If we build up an abnormal con¬
dition with Federal money, that is
inflation.
Sooner or later it will

530,500 are issued
and outstanding and
being sold by certain stockholders.

lic

Underwriters—S.

program

to

proper

are

Details—See

for

spends
the
money,
it controls
whatever
private
interests
or
local government is dependent on

but

ficult

March

registration statement

stock purchase warrants.

perity
or
employment.
This
spending not only increases the
debt, but it increases
tremen¬
dously Federal centralized power,

sible

to rec¬
of Federal in¬
vestment
and
expenditure suf¬
ficient to bring the aggregate vol¬
ume of investment and expendi¬
ture by all, up to the level re¬
quired to assure a full employ¬
a

Once the Federal Govern¬

develops a new line of ac¬
tivity it is not easy to stop it, and
it goes on long after the need has
disappeared.
A deficit spending
policy of $3,000,000,000 a year in
the thirties did not produce pros¬

ommend

In the first
CORP.

for 663,500
shares Class
A
common
stock,
par
?alue one cent a share, with Class A com¬
a

amend-

the public

100.47.

Pittsburgh,
I JLouis, Mo.

thing about the Wagner
bill is that it regards unlimited
public spending as the ultimate
solution for every difficulty. The
key policy in Section 2 (e) is the
statement that "It is the responsi¬
bility of the Federal Government
to provide such volume of Federal
investment and
expenditure .as
may be needed to assure continu¬
ing full employment," and then

places.
CAMERA

UNIVERSAL

220,000

Details—See issue of July 19.

I

The bad

ment volume of

preferred stock will also be received at the
same

times

ment

the President is required

Underwriters—To be filed by amendment.

to

joint committee of Con¬
gress to do the same thing for
Congress.
We know more about
economic forces today than ever
before, and we must apply that
knowledge.
We cannot afford to
permit the recurrence of another
depression in the United States.

(to be offered at $9.50 per

ployees, will receive

connection

1 for various obligations of the registrant.
I
Underwriters —
Principal ; underwriter
I Bennett & Co., Inc., Dallas, Texas.

I

,

In

Inc;, parent of Red Bank, will
receive 209,970 shares in return for a like

Inc.,

I

warrant

^

pumber of shares loaned to the registrant

Ben-

Co.,

| lor all of Federal's stock.
I

I

*

-

spend money in' hard
and not spend it in good

much money is saved, there is not

The Wagner so-called Full Em¬
ployment bill has two features,
one good and one bad.
It requires
the President to give comprehen¬
sive planning and thought to our
future
economic
condition, and

by em¬
ployees will be sold to public through un¬
derwriters along with the rest of the public
offering.
For every ten shares of common
stock bought, purchasers, other than em¬

faett &

| Of the outstanding stock

|

-

.

Underwriters—Van

share*

I Inc.
In
addition, 150,000 of, the shares
I registered will be issued to stockholders of
I Federal Steel Products Corp. in exchange

I

•

will

times.

to

will

debenture

heads the underwriting group.

to

[ of common stock (par $1).
|
Details—See issue of June 7.
|
Offering—Of the shares registered

I

$1,000

non-detachable

a

monkey wrenches into it.

The "Full Employment" Bill

issue of July 26.
Offering—The price per unit to the pub¬

/

RED BANK OIL CO.

registration

throw

Details—See

with names of others to be filed by

[ amendment.

I
I
I

Each

Co.

attached

it

run

the

company proposes to sell
plus 20,000 warrants to an

common.

mon

Pierce,

[*' Fenner &: Bea'rie heads the underwriting
group,

of

entitling the holders to purchase 25 shares
of

19

Details—Bee

exercise

to

(no

amendment.

I
I
I
II

&

have

The dividend rate will be filed by

par).

L

<

The

debentures

Bids

INC. on July

I

I

the

upon

machine.
We have to
adjust it, and oil it, and
to full capacity and not

built-up
learn

common

underwriting group headed by .Van Alstyne,

preferred stock now
share for share bash

I

I

issuable

like amount of

a

6%
a

&nd $5 in

i

$1,-

.

57,500 shares and

The

,

[1 ; Details—See issue of April 26.
|
Offering—The company will offer the
[ 63,784 shares of preferred stock in ex[j change for the 29.182 shares of 7% and
I 34,602 shares of
I outstanding
on

July

sinking fund deben¬
tures due Aug. 1, i960; five-year common
stock
purchase
warrants
to
purchase
15-year

'he rate of

Lof 4'/j%

on

for

all agree that we

we

duce

*'

statement

registration

a

5%

500,000

'

/

private employment would pro¬
as many jobs as the biggest
possible increase through a public
works program.
This private en¬
terprise system is a delicately

Co.,

&

and

to

easy

only get full employment on
standards
by jobs in
private enterprise. At best, Gov¬
ernment payrolls could only put
about 5,000,000 men to work, and
we
wish to
employ more than
50,000,000.
A 10%
increase in

group

Noel

SOLAR MANUFACTURING CORP.
23

May 22 to Blyth &S Co., Inc. at
per share.
.W •

stifled."

I

by Van Alstyne,
Johnson, Lemon & Co.

and

common

The SEC
the bid,

,

underwriting

headed

hardship

is

so

de¬

American

public is
per share

$30

its

steady

another

can

preferred.

Underwriters—The
is

registration " Statement for 700,000

is offering them.
Details—See issue of May

Co.

[.

the

and

debentures

lative preferred stock

*

!

the

series

Underwriting—None named.

shares

So I think

12

for $2,375,000 first

being acquired by the trust.

4 filed

July 19.
to
the

price

for

for

of

issue

with
It

it

'

statement for $3,000,sinking fund debentures

10-year

lic will be

securities are to be sold
face value to the owners
and operators of O K Tire Servicing Stores
and to employees, customers and sunoliers
their

July

on

have

American standards.

-; /

;

■

I, 1955, and 70,000 shares cumu¬
lative preferred stock, series A, with com¬
mon
stock purchase warrants.

Offering—The

at

CO.

-v

due Aug.

debenture certificates.

Details—See issue of June 21. '

aggre¬

registration

a

5%

000

and 800 units of $500 each of pre¬

shares"

ferred

com¬

Triumph has 494,722
outstanding.

RUBBER

500

designated

of the

stock

12 filed

June

TEM on

L

common

shares

the books

on

pany at $3,626,682.
shares of

exchanged pur¬
of Triumph

are

the

later

a

Assuming all of

date, the statement said.
suant

exchange

the

that

offer will not be consummated

FINANCE

SEABOARD

least 80 %

the

'

/V"

economy

give
everybody a job under the Com¬
munist system, but everyone has
to take the job the Government
gives him, and in Socialist coun¬
tries up to this time the average
job has not produced very much
in the way of living according to

principal amount of its Indebtedness
by redeeming the outstanding

ding.

Triumph.

of

The offer of Noma is conditioned upon the

the

hold

don't

pression

bonds and issuing $3,750,000 of new bonds.
The bonds will be sold at competitive bid¬

200,000

owns

reduce

to

then

we

suffering.

G. H. Wplker & Co. and

and

and

that

to $3,750,000

f

dustries, Inc., formerly known

1947

due

prosperous

this

Snider Co. as exchange
igents to secure and procure consents of
preferred shareholders to the conversion.
The company also proposes to refund the
$4,806,000
first
mortgage
bonds,
4Mz%
gate

ELECTRIC

registration

"^Explosives,

out¬

Wright,

Prescott,

NOMA

■(.

13,056
shares

the

of

standing 5% cumulative preferred shares
by others than Cities Service Power

♦

1

share

a

all, and that means that all
really want to work should
be able to get jobs and keep them.
The question is: how we can do

8.

& Light Co.

series

a

for

share

achieve

held

Registration Statement withdrawn Aug. 4.

filed

of March

issue

conversion

j

«harcs of

Our most serious problem is to

on

Underwriters—The company has retained

Underwriters—Stock
at

CO.

Offering—The company is offering
3hares of its Class A 5% preferred
in

Amendment.
;

POWER

&

28 filed a registration statement for
13,056 shares of Class A 5% cumulative
preferred stock, par $100.

and

by competitive
bidding./■•'''■• ■ ■!.:,■'■
^ij- j;\i/• i:v
it Details—See issue of July 5.
Offering—Price to public will be filed by

Cold

JOSEPH LIGHT

Feb.

registration

a

$10,000,000

preferred

will

ELECTRIC
filed

27

1973,

Cumulative
on

STATE

months ahead of

are

and

for

Co.,

000,000 by the end of the recon¬
version
period.
This
program
might increase it by $30,000,000,000 in a single year. It is easy
to say that the Federal Govern¬

who

Battles &

Securities

Southern

Inc.. and

Government Spending

Putnam & Co.,

Co.,

ery or hundreds of basic materials
required if men are to be put to
they come out of the
Army.
Incidentally, the British

work when

economic
Govern¬

""

"J''

'"""

"

-

"'"

"

■»,

.

THE COMMERCIAL & FINANCIAL CHRONICLE

760

:

New England Public Service

Trading Markets in

Foreign Securities

Bendix Home

Jacob

Baltimore Porcelain Steel

Ruppert
Majestic Radio

Amalgamated Sugar

Ironrite Ironer

Bendix Helicopter

v

•

-

INC.

r.ARL MARKS & P.O.

Lear Inc.

Mississippi Central Common

Corporation

50 Broad Street

Members N. Y. Security Dealers Ass'n

New York 4#

•

HAnover

40

N.Y« J

Exchange PI., N. Y. 5
Teletype N.

CO. Inc. CHICAGO

AFFILIATE: CARL MARKS &

2-0050

INCORPORATED

Chesapeake and Ohio Railway
Advertises to Create Qptiniism

Hem

York

NASSAU

45

telephone

„

REctor 2-360Q

NEW

STREET,

Enterprise 6015

;:

Worcester Trans. Assoc.

,

YORK

5

227,660
Net

bell teletype

telephone

philadelphia

,

Association

1-576

new york

,

ially Portrayed.

NSTA Notes

Railway,
in conjunc¬

just released an advertising schedule of his company

has

arid

the ;Pere

Marquette, which aims to dispel
growing concern among work¬

individual.
Mr.

the

thpt we may enter another pe¬

ers

of

riod

after the

unemployment

and which will stress little
facts of the pent-up de¬
mand for civilian goods, and the
tremendous technical progress be¬
war,

known

made

ing

which

industry,

by

both of

bound to bolster em¬

are

BOSTON 9,

ployment to a degree that is diffi¬
cult to overestimate. The first ad¬
vertisement in the series appear^
elsewhere
in this: issue of the

Boston-

:

political state and serfdom of the
-

when

give

to

ways

one

"it

the

confi¬

management

"40 Over 8"

;

for

employment problem and its
ability to provide a lot of post¬
war jobs."
; i

oficers and executives meeting at the end of
will recognize this year of 1945 the most

is

for

war

our

We

are

:

far ahead

of

last

year's final

and

we

are

certain the

this month in Mackinac,
successful year for the

Public

Utility Stocks and Bonds
TEXTILE SECURITIES
Securities with a New Eng. Market

,

If

Frederick C. Adams & Co.
Specialists in
New England

products, better prod¬

with evidence

ucts, products at lower prices, and
the vast number of jobs that these

with post-war

would

to create, they

sure

are

optimistic rather than

be

'fearful."
"As

exhibit

an

from

just

one

geographical section," continues
Newton,
"the
Cheaspeake

Mr.

and

Ohio

undertaken, to

has

tell

the

people of this country some¬
thing of what those industries
located on its right-of-way are

doing

Established In 1922

course

is

intention

our

dustries:

ten in¬

cover

coal, glass, paper, steel,

household appliances, agricultural

machinery,

chemicals,

packing,,

automotive and food."

Programs such

;;

the C. & O.'s,
do much to allay the "post¬

can

jitters,"

war

fanned

as

which

has been
constantly
ever
started by frenzied

since the

war

sorts

These

and

conditions

have

been

of

men.

working

to¬

ward

creating a fear complex
both among business men and em¬
ployees.

They have been

respon¬

sible in part for the revolutionary
economic proposals which, if con¬
tinued

and

implemented,: will

eventually lead to
free enterprise and
undertakings,
and

the

end

new

private

toward the creation of

Columbus

thus
a

of

tend

socialistic

Auto Parts

need

preaching of
better things to come! We already
have too many Jeremiahs!
^
more

Woolley Quits OPA

•

Administrator Chester Bowles his

resignation

as

Regional Adminis¬

trator of the New York

Office of

Price

Administration, the Associ¬
reported from Wash¬
ington, July 31, adding that Mr.
Bowles had accepted the resigna¬
tion, effective immediately.
ated

Press

Mr.

Bowles

appointed

his

special assistant, Leo F. Gentner,
formerly Regional Administrator

1945-—Cleveland Security Traders Association annual
at Manakiki Country Club.

summer

August

28,

29

&

30,

1945—National

business

meeting

and

Security Traders
election

of

Inc.

annua!

Capital Stock

•

released by Mr. Bowles's of¬

have reiterated your desire to re¬

fice, Mr; Wooley told Mr. Bowles:
"At our last meeting on June 14

acceptance of it, effective imme¬

I asked that you consider

diately,

ence,

This letter will

sign.

reliev¬

"I

as you

know

how

been for you to

trator.

your

.

have

events

"Recent

know

of that plan.

the carrying out

is

appreciate
your desire for the good of the
region to have the matter settled."
I

"However,

In

can

his letter of acceptance,

Mr.

broached the
question of your resignation some
60 days ago I urged you to stay on.
On

several

first

since

occasions

you

totally

"I

you

it

has

go

and

me

to

am

charges
as

148 State &1., Boston
9, Mass.
Tel, CAP, 0425

:
: >
Teletype BS 259
.V. Y. Telephone HAnover 2-7914

all who

r

that your resignation
unconnected with any

charges reflecting on your inintegrity which have recently ap¬
peared in the press.
^

Bowles said:
"When

difficult

through with
plans to resign at this time.

It is clear to

delayed

serve as my

have requested.

convinced that any

without

are

such

foundation,

I have full confidence in

your

INDEX
Bank

and

States, Pfd.

integrity and personal honesty."

you

a

the

time

same

Municipal News
NSTA

Paul L. Ross, who
was dropped by Mr. Woolley.
Mr.
Ross was in charge of enforce¬
From

the

Specializing in

Gear

Unlisted

Securities

Real

Associated

Press

we

.

BANK

,

PUBLIC UTILITY

-

INSURANCE

-

INDUSTRIAL

Radiator, Pfd.

value

per

on

751

Governments.....

752
734

Securities

746

736

.........

Salesman's

734

Michigan and Connecticut
curities Section

No

souri

on

yr.

earnings per share..

2.67

Average 5

yr.

dividend per share..

Quarterly

MARKET TO YIELD

on

Se¬

page 740: Mis¬

741.

WANTED
BOUGHT

—

SOLD

—

QUOTED

Blocks

RE1ER, MITCHELL 8 REITZEL, BIO.

.73

Current dividend.....

page

BONDS, PREFERRED AND COMMON STOCKS

preferred stock

share............ $7. plus
share............. 12. plus

Average 5

H. C. Godman Convt. Pfds,

760

Report

Estate Securities

grinding machines.

No funded debt
Book

750

'AA;',;.

Says

REAL ESTATE

-

LUMBER & TIMBER

Largest American Manufacturer

per

735

Corner....... 757
Tomorrow's Markets—Walter
Whyte

V":

:

Grinding Machine Co.

equity

Notes.....,.,

Utility Securities

Securities

exchange of correspond-

an

and

734

regional office.

also quote:
In

Reporter

Public

Railroad

by

ment for the

751

Eecom

Literature......

Notes...........

Reporter's

Mr.

request for a "further hearing"

Cash

U. S.

Investment
and

Our

disclosed he had rejected

submitted

746

Security Flotations 758

Securities........

Dealer-Broker

Our

stated that at

743

Items

Mutual Funds........;

The Associated Press also

Bowles

Stocks.,.

Personnel

Calendar of New

Canadian

mendations

the Pacific Coast, to be New
York's Acting Regional Adminis¬

of gear

Pressurelube, Inc.

Insurance

Broker-Dealer

Incorporated 1908

Eastern

Manufacturing

:

Association,

officers.

Pollak

meeting

-

for

trator.

Tele. BOstoh 2u

J

Calendar of Coming Events
August 24,

ing me of the responsibility of the
position
of Regional Adminis¬

Daniel P. Wooley sent to Price

almost

discussions, prognostications and
forecasts throughout the nation by
all

We

of the campaign, it
to

proof of their
willingness, to cope

and

Tel. HANcock 8715

and

problems, and thus
plant the seeds of optimism in the
minds of the people to insure the
continued development and
ex¬
pansion of American enterprise
and accomplishments.

post-war jobs.

provide

to

In the

ability

Unlisted Securities

24 FEDERAL
STREET, BOSTON 10

ft

projects

BS 328

^
Industrial Issues
Investment Trust Issues

.

new

Teletype!

Insurance and Bank Stocks

results.

NSTA financially. .:: :
We have a little over two weeks open for those who still would
business';management;.; and
he glad to be part of this campaign for advertising in the NSTA
workers proceed to the attack in
Supplement of the "Commercial and Financial Chronicle" so let's
the
battles
"Chronicle."
"
:
facing them in the
hear from you as soon as possible.
: "It is our firm conviction," Mr.
post-war period as well as they
Due to conditions beyond our control we must postpone the
Newton
tells the; editor of the took up the tasks of carrying on
tally results until next week.
...
"Chronicle," "that if people could the war, there need be no fear of
K.I.M. "40 Over 8"—Harold B. Smith, Chairman NSTA Adver¬
know what the post-war demand the future. But it requires many
for goods will mean in terms of other public spirited industrialists tising Committee, Collin, Norton & Co., New York, N. Y.; A. W.
actual jobs; if they could know of and enterprisers of the type of Trvder. Vice-Chairman NSTA Advertising Committee, W. H. Newbold's Son & Co., Philadelphia.
the plans
business management Mr. Newdon to come out strongly
has for

MASS.

New York

We specialize in all

Along with V-J announcement, we, members of the NSTA
advertising committee, are very much pleased with results to date.
We urge members who are interested in the work done by this
committee, to contact any one of the officers or district chairmen

management to dem¬
onstrate its interest in the post¬
tem

'

Hanover 2-791J

;

Hubbard 6442

is

best

American enterprise sys¬

our

7%%

right

that

of

public

the

business

in

dence
and

the

on

states

he

that

belief

10%-%

*

is

Newton

track
our

\

,

six

RALPHF. CARR &C0.

railroads,

Plate

Nickel

the

affiliated

its

tion with

Mkt.;

Yield About

;

first

reported
at
$120,878;- an increase of ap¬
proximately 28% over 1944.

Be Pictor-

President of the Chesapeake and Ohio

Carl E. Newton,

outstanding.

for

was

Current

'
-

shares

income'

months

Factors Which Will Create More

Progress and Expansion in■ Ten Industries to

208

.15

So. La Salle

of Securities

St., Chicago 4

RANdolph 3736

6%

EXCELLENT POST-WAR PROSPECTS

WESTERN UNION

W. T. BOM & CO.
120

Broadway

Telephone COrtlandt 7-0744
Bell

Teletype

Inquiries Invited

HUGHES & TREAT

New York 5
NY 1-888




40 Wall
Tel.

g

HA. 2-8780

1-1397

<

Dealers

Security

Campaign to Inform Public of Postwar
Jobs. Technological

a

Y.

Kobbe, Gearhart & Company
Members

Conducting

V

M. S. WlEN & Co.

SPECIALISTS

;

Telephone

Telecom

Majestic Radio & Television

FOREIGN SECURITIES

.

*

U. S. Finishing

Du Mont Laboratories

Globe Aircraft

1-971

•

Du Mont Laboratories

Teletype
NY

Helicopter

Seeger Sunbeam

■;

Gay '

Utah Idaho Sugar

Clyde Porcelain Steel

MARKETS

Bendix

Wilcox &

Appliances

Thursday, August 16, 194

BO

St., New York S, N. Y.

9-4613

Tele. NY 1-1448

TELEPRINTER

"WUX"

BELL SYSTEM

TELETYPE

CG-989

Hill, Thompson & Co., Inc.
Situations
Markets and

120

for Dealers

Broadway, New

Tel. REctor 2-2020

York 5

Tele. NY 1-2660

;