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1X44
RY
Final
Edition
In 3 Sections
ESTABLISHED OVER 100 YEARS
-
Section 1
ommatcia
Reg.
Volume
Number 4308
160
Barber Officer of
Sterling Nat'l Bank
National
Sterling
and
Bank
Trust Company of New York an¬
nounces
the
election
o f
Henry G. Bar-
1W$T$
'
•"
g
ber
vice-
a
as
president
the bank.
f
o
Havoc In
the
of
Building
Industry LeaMalt#.
'■'mi.
ill
I
the
f
o
Btonx
Estate
Heal
in
!
a
governor
m
JMKttexM*
mil
Inc*'
gue'
mmmEZkwmmm
Board,,'and
G.
Henry
a
director of the
Barber
Bronx
Cham¬
ber of Commerce.
July 28,
can
of cer¬
tainty that the
rationing of
In This Issue
information
For
users
the
1945,
of
the
dealer activities in States of Con¬
Michigan
necticut,
see
pages
and
Missouri
even
the
end
Lamborn
H.
Ody
}'
or
a
hood that rationing of sugar to in¬
dustrial
Page
'>
Bank and Insurance
Stocks......... 692
Broker-Dealer Personnel Items......
of
Calendar
Canadian
New Security Flotations 703
.,694
Securities
Funds
Our
rope
Governments...... 704
688
Utility Securities............ 686
Public
Railroad
Real
696
Reporter's Report
687
Securities
688
Estate Securities
Tomorrow's
Markets—Walter Whyte
686
Says
say,
or
—
1946,
six
as
approxi¬
for
whether the
war
next
have
tary
in
users
six
would
be
held to
Outlook for
price
For
in
instance,
1934 the dollar
prices
Stocks
on
inflation
and bank
deposit defla¬
■///// .'■■/ '/•••
tion.'/'/*•;«:
'
Whenever demand exceeds cur¬
supply,
rent
creases.
The
price
usually in¬
price increase usu¬
ally tends to decrease the demand
and increase the supply until a
new
balance is struck.
So long
as
price advance calls forth in¬
a
creased
total
devalued
forms
a
and
we
had
when
total
monetary
in¬
flation
with-
for
Request
per¬
production cannot be
talk
*A
production, it
useful social function. But
inflation. Dur¬
Established
-
Geneva Rep.
had
■
MANHATTAN
BONO) FUND
<
,
(Continued
HAnover 2-0600
Chicago
1927
SECURITIES
INVESTMENT
York 4, N. Y.
Teletype NY 1-210
Cleveland
64 Wall Street, New
The
on
page
price will
finally expell
the eager buy-
Dr.
Ivan
Trading
HUGH
W/LONG
48
COMPANY
BROKERS
LOS ANGELES 14
NEW YORK 5
prices." These equilibrium adjust¬
ments
are
TELEPHONE-RECTOR 2-6300
called inflation and de¬
the long run,
flation.' In
justments
of
and
taxes
debts,
prices,
malad¬
production
all other
con¬
tributing factors to value relations
adjust themselves and stability is
(Continued on page 689)
State and
and Dealers
A
Hardy& Co.
Exchange
New York Curb Exchange
30 Broad St.
Tel.
DIgby 4-7800
New York 4
Bond Department
THE
CHASE
NATIONAL BANK
OF
THE
CITY OF NEW YORK
Tele. NY 1-733
Manufacturing Co.
6s of 1938
Common
Kobbe, Gearhart & Co.
'
INCORPORATED
-
Members N.
45 Nassau
Tel.
Bonds
Midland Utilities
Actual and c/d
Bought
—
Sold
—
Quoted
Y. Security
Dealers Ass'n
REYNOLDS & CO.
Members New York
120
'
done
Philip Carey
INDUSTRIALS
5.N.Y.
be
to
Service
/
Members
ST.
Report on request
14 WALL ST.. NEW YORK
ex¬
volume
with money:
and credit will bring a decline in
work
Brokerage
Members New York Stock
634 SO. SPRING
WALL ST.
RAILS
STOCK EXCHANGE
im¬
Markets, always
ELECTRONICS
/; BOND
C2
and
ers
Wright
and credit relative to the
of
700)
WholesaleDisHButor$
:
BULL, HOLDEN &
increase
in
for Banks, Brokers
York 5
PHILADELPHIA
Troy
Albany
Buffalo
Syracuse
Pittsburgh
Williamsport
Dallas
BOSTON
Actual
MEMBERS NEW YORK
Bond
REQUEST
•INfORPO
INCORPORATED
25 Broad St., New
for¬
eign securities.
Absecon, N. J.,/
ing the early part of 1940 we
R. H. Johnson & Co.
Stock Exchange
Exchanges
Members New York
London
in¬
in
given by Dr. Roos on
sponding price
Dr. Charles F. Roos
corre¬
VICTORY
Hirsch, Lilienthal & Co.
other
an
Aug. 9, 1944, before the National
Retail Dry Goods Association at
out
PROSPECTUS
and
be¬
or
come
Municipal
Buy War Bonds
'
Copy
its
vestor
Railroad Common
:
in-
and
base
crease
deflation
was
the supply situation, allot-
(Continued on page 692)
inflation
inflation.
or
Depending
80% sugar allotments.
upon
70%
ex¬
ports and
price
is
to
mone¬
without
surrounding
tions
It
piossible
months—the Condi¬
the sugar in¬
dustry will require the rationing
of sugar for the period indicated.
Of course, the maintenance of ra¬
tioning after the war does not
mean
necessarily that industrial
the
would
indicate.
in Eu¬
ends tonight or any time
popular dis-
cussion
>
mately the next two years,
"As we see it, it makes no dif¬
ference
....
Our Reporter on
months
697
Municipal News & Notes..../
Mutual
686
will be maintained
users
through a substantial part of
certainly
during
the first
gold
thus
coupled with a ports will again stabilize at an
Too much money
lated, the com form of monetary inflation—infla¬ equilibrium.
nection is not tion of bank deposits/ During the and credit, in time, will cause a
nearly so close early part of 1937 we had price rise in prices, and too little money
likeli¬
strong
in
pand its credit
and price in¬
flation are re¬
is
there
pay¬
and
confused
inflation
later
ment
•«>-
V-
v ,■;■■■
im¬
sooner or
The
And Unless Higher Prices Are Per¬
On Some Goods, Their Production Will Cease
we
year,
believe
with
must
receive,
<
popular discussions monetary inflation is usually
While monetary
made a part of price inflation.
In
war
should
this
690 and 691..
not.
or
Indeed,
if
mitted
it
ports
Much Less Effective,
ends this
more
than
Pointing Out The Interplay Of
Supply, Demand And Monetary Factors—Holds "Statis¬
tical Analysis Indicates That The Most Significant Price
Determinant Proves To Be The Domestic Purchasing
Power"—Predicts Post-War Price Controls Will Be
continue
year
to
pertinent
CHARLES F. ROOS*
the
that
exports
Price Making Process,
in¬
to
through
war
DR.
By
gree
year
trade
President Of Econometric Institute, Inc. Examines
de¬
dustrial
In foreign
business.
rea¬
a
will
and the less efficient producers
loss will be driven out of
The Probable Price Level
say
sonable
sugar
not stand
1944,
think
"We
with
a
can
country
states:
we
free competitive market,
if left to
who
Sugar
in
the probable duration of sugar rationing
on
Brooklyn College
finally right themselves and balance out
but without any very definite pattern of timing or justice about the
conflicts which arise.
It is well known that if the supply of some
article exceeds the demand that the surplus will pull down the price,
dated
letter
whether
I
Copy
a
Economic relationships
.
European And Oriental Producing Areas—
Ody H. Lamborn, President of Lamborn & Company, Inc.,
Bank,
is president
the
f
o
National
Cents
60
By IVAN WRIGHT
Professor of Economics,
Urges Increased Sugar Prices As A Remedy
a
Bronx
Price
York, N. Y., Thursday, August 17, 1944
Mr.
president
r.
Office
Inc. Looks For A
Continued Post-War World-Wide Shortage Due To War
Brokers, commenting
:a f
iM,
Pat.
President Of Lamborn & Company,
executive vice
v,
S.
Economic Stabilization
Predicts Sugar Rationing For
Industrial Users Through 194S In The Post-War Era
Barber,
who
was
formerly
,
New
.
U.
New York 5
Street
REctor 2-3600
Teletype N. Y. 1-576
Philadelphia Telephone:
Enterprise 6015
Stock Exchange
HART SMITH & CO.
Members
New
Broadway, New York 5, N.Y.
Telephone:
REctor 2-7400
Teletype NY 1-635
York
Dealers
Security
ST., N. Y. 5
Bell Teletype
New
Bell
York
52* WILLIAM
NY
Assn.
HAnover 2-0980
1-395
Montreal
IRA haupt & co.
Members
of Principal Exchanges
111 Broadway,
Toronto
REctor 2-3100
,
N. Y. 6
Teletype NY 1-1920
THE COMMERCIAL & FINANCIAL
682
Thursday, August 17, 1944
CHRONICLE
Trading Markets in:
U. S.
FUNDS for
We Maintain Active Markets in V. S.
Sugar
P. R. Mallory &
American
Common
United Drill "A" &
KING & KING
40 Exchange
Members N. Y, Stock Exchange and Other Principal
Security Dealers Ass'n
York
HA 2-2772
Fl., N.Y. 5
Telephone
Burry Biscuit, Pfd.
"A"
Delaware Rayon
Elk Horn Coal, Com.
& Pfd.
Kearney & Trecker
Sweet Steel
Sylvania Industrial
IlitclielUConipaiuj
Stock Exchange
Members Baltimore
N. Y. 5
120 Broadway,
Exchanges
Sees Possible Benefits To United States Economy
Stock
Tel.
,
Exchange
REctor
Direct wires to
2-7815
our
branch offices
wno
t
re
in
address
an
r e s e
How Will
ntatives,
gives
his
the
on
adopted
plan
Con¬
the
ference
and
:
Vanderhoef & Robinson
the
the House
to
war
.V;
r
✓
.
of
New York 5
for
post
world
COrtlandt 7-4070
System Teletype NY 1-1548
•
-
i
m
of
"I
Indiana Limestone
1952
6s,
Strutfiers Wells
and
t
provement
foreign
H. G. BRUNS & CO.
20 Pine Street, New
York 5
Telephone: WHitehall 3-1223
Teletype NY
Bell
1-1843
sented
General Aniline & Film "A"
Investment
Tin
General
Macfadden
Publications
Piece
United
Common
Dye
Works
entirety:
St., N. Y. S
Bel! Teletypes—NY
Hanover 2-4850
1-1126 & 1127
Members New York Curb Exchange
65
r
y
.. .
may
perhaps
Centra! States Elec.
August 2, therefore,
on
passed, the Termination
Bill, providing for the
speedy ^conversion from war to
peacetime production by industry,
has been enacted into law, and a
bill for the disposition of surplus
government inventories and prop¬
erty of all sorts, on a basis that
our
future
re¬
Allied forces on three fronts, to¬
gether with multiplying signs of
however,
internal
by
the
could
When
the
of
what
/
on
it
and
year,
time.
news
comes,
:•
the
at any
occur
event
of
end
has
not
been considered to any extent in
the halls of Congress, i. e., the
subject pertaining to America's
participation in post-war mon¬
etary collaboration with other na¬
tions,
regarding
which
there
(Continued on page 702)
disintegration,
almost a certainty
the end appears
ket?
item,
Aircraft & Diesel
Common
Chesebrough Bldg. 6s,'48
♦Dealt
in
important,
made
to
Railroad
/
in
reconversion
from
Members
Public Utility
'
happy
impact is it
the stock
mar¬
;
.
the
The Cross
Industrial
fers tremendous
Detailed
Great American Industries
Indiana Limestone 6s, 1952
long-term,
ST.,
N.
Y. 5
Teleytpe NY
WHitehall 4-4970
1-609
Members New York Stock Exchange
St, New York 4, N. Y.
HAnover 2-0600
Tele. NY 1-210
'
on
I
t
.
'
request
Ill Broadway, New York 6, N.
co.
farr &
the indication that indus¬
tion is
Y.
NY 1-1026
BArclay 7-0570
stronger internal market posi¬
a
trial reconversion has
Members
begun
now
New
extent, while a year ago
to
some
no
•"
York Stock Exchange
preparations for peace were in
sight.
!
New
York Coffee & Sugar
120 WALL
v
Exchange
ST., NEW YORK
Result of the Invasion
The
news
of the
for
awaited
considerable
invasion
many
weeks
SUGAR SECURITIES
was
with
:*!
apprehension, while
.'
Quotations Upon Request
,
'
.
TEL. HANOVER 2-9612
,
Teletype N. Y. 1-2123
•
5%
due
Cuba Co.
1969
Buffalo, Niagara & Eastern
*
Keilett Aircraft
$1.60 Preferred
t
Boston & Maine Railroad
Luscombe Airplane
A, B, C, & D Preferreds
Preferred
Piper Aircraft
Diamond Alkali Co.
V
Bought & Sold
-
Troster,Currie & Summers
Members
74
N.
Y.
Security Dealers Ass'n
Trinity Place, N. Y. 6
Remington Arms
WM. J. MERICKA 6- CO.
INCORPORATED
Members
Union
Cleveland
Commerce
Stock
Bldg.,
•„
-
•
Exchange
Cleveland, 14
Telephone MAin 8500
HA 2-2400
:
MORRIS STEIN & CO.
*
.
25 Broad
'
F.H Holler & Co., inc.
funda¬
Steam Shovel
possibilities.
Simons, Unburn & Co.
G. A. Saxton & Co., Inc.
Marion
outlook of¬
STOCKS & BONDS
t
,
Memoranda
-
problems
report on request
Company
Laclede Christy Clay Products
"
industry without compli¬
its post-war
5
war
trading range. Yet when the news
finally came on June 6 the mar¬
mental effect of peace undoubt¬ ket reacted
barely a point in the
edly will be bullish, we think that Dow Jones : Industrial Average,
the impact of the news on stock and closed at
142.21, higher than
prices will depend largely on two
(Continued on page 693) "
While
c
...
YORK
NEW
HAnover 2-9470
Teletype NY 1-1140
the market remained in a narrow
PARK, Inc.
cated reconversion
York Curb Exchange
New
ST.
WALL
64
discord in the German ranks evi¬
this
Technical Position Important
(Men** clothing)
An
Exchange
peacetime production.
v
FASHION
York Curb
Frank C.Masterson & Co.
Henry Holt & Co.
Trading Markets in
New
on
'
German
likely to have
is in committee.
Preferreds
&
was
sistance, to¬ denced by the abortive
plot to
gether with assassinate
Hitler, have been fol¬
the consensu^
L. H. Bradshaw
lowed by a much milder reaction,
Editor
of
military which
proved short-lived in com¬
"Investment Timing"
and
other
parison. Both reactions followed
Washington opinion, indicates that sustained
advances, but liquida¬
we
may see the =end of the war tion this
time appears to have
with Germany this Fall.
dried up in a few weeks, against
In fact, in view of the rapid ad¬ several months on the former oc¬
The soldier's GI Bill of Rights
vances
now
being made by the casion. Added to this evidence of
of Contract
(Va.)
Debentures
& Sy2%
Common
This,
German
will not interfere with
WHitehall 4-8120
Broadway
Bell System Teletype NY 1-1919
in$
The 78th Congress, which is ap¬
proaching that time when it will
adjourn sine die, may look with
some satisfaction upon its achievments in preparation for the end
of the war in Europe which will
bring with it problems of such
vast
magnitude
that they
are
scarcely conceivable.
One
Y. Security Dealers Assn.
later merged with
was
As time goes by, the market
with shows
progressively increasing
Foreign Sec¬ ability to absorb bearish
impulses
retary An¬ that might
develop from peace
thony. Eden's news. A year
ago the news of
more
specific Mussolini's abdication and
Italy's
mention of
quitting as an ally of the Nazis
September as was followed
by a substantial and
a
possible
prolonged reaction.
The recent
ending of Allied
victories, together with the
in House Joint Resolution
economy
Members N.
Members New York Stock Exchange
which firm
coupled
226, introduced on February 1st
(text of Resolution appeared in
"Chronicle" of Feb. 10, 1944), we
present his remarks below in their
and Preferred
ana
o
soon."
Dewey's activities
independent plan
post-war rehabilitation, repre¬
has been
Engineering
Aetna Standard
Edward A. Pureed & Co.
longer
no
come
Preferred
&
Common
Dillon, Read & Co.,
joining E. B. Smith & Co. in 1927,
the technical position of the mar¬
feel bound to ket, and, secondly, the extent of
deny that vic- the progress that has then been
war
of Congressman
in presenting an
for
Shoe
with
career
Plain
of general sales at
manager
Smith, Barney & Co. He began his
his statement: I factors: first and most
trade. Because
& Preferred
was
of Commons
significant
recon¬
struction
Rep. Chas. S. Dewty
Common
6s
Bayway Terminal
Affect The Market?
other methods
Telephone
W. L. Douglas
N.E. Public Service
Aug. 21. Mr. Wilson, who has been
in the Street for about 25 years,
Germany's defeat appears on the horizon. Winston Churchill is
by nature and experience a conservative and a realist, not given to
rash expression of sanguine hopes, over-confidence or self-delusion
through unfounded enthusiasm. He has never hesitated to give the
British public bad news in the same measure as good news. His report
sug¬
gestions
York Curb Exchange
Common
Southwest Gas Producing
*5%
on
making
Byrndun Corporation
Securities
Germany's Defeat
for
views
Y. Curb Exchange
Street
Union
n
delivery in the
House of Rep-
by
31 Nassau
with
Corporation, 65 Broadway, New
York City, as vice-president, on
at*
to
prepared
6>/2S, '55
7s,
'52
7s,
'57
Members New
Out¬
C. D. Barney & Co. to form Smith,
member from Illi¬
Monetary and Financial Barney & Co.
International
the
attended
Power Securities
Traded on N.
H. Warren Wilson will become
associated
Am. Cable & Radio Wts.
Congressman Charles S. Dewey, Republican
Y. 1-1227
Teletype N.
International
I
NY 1-1557
Southwest Nat'l Gas
Union Securities ¥«-P.
Operations Of The Export-Import Bank "As Our Method
Of Participation In World Reconstruction"
Woods, N. H.,
PINE
St., New York 4, N. Y.
HAnover 2-0700
New Orleans, La.-Birmingham, Ala.
HlW. Wilson To Be
uidating With Heavy Loss To U. S.—Urges That As A
Substitute For International Fund Congress Enlarge
;B
70
1
Members New York Stock Exchange
25 Broad
BROADWAY, NEW YORK
120
Scarcity Of American Dollars Will Lead To Fund Liq¬
Conference
37 Wall
Quoted
New York Curb Exchange
weighed By Risks Involved—Predicts That Under Plan
nois,
.
York
New
Rep. Chas. S. Dewey's Views On
International Monetary Fund
WOrth 2-4230
Bell
—
TELETYPE NY 1-423
BELL
Bell
BArclay 7-0100
Sold
—
Steiner, Rouse & Co.
Members
NEW YORK 6, N. Y.
Teletype NY 1-672
115 BROADWAY
Bought
McDonnell & Co.
Goodbody & Co.
Established 1920
New
request
Bought & Sold
STEEP ROCK IRON MINES Ltd.
"B"
on
•
WARRANTS
BULOLO GOLD DREDGING
Mid-Continent Air.
Members
Analysis
,
Cable & Radio
NORANDA MINES
Bendix Home Appl.
Co. Inc.
Teletype NY
Private
Wires
Detroit
-
to
.
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Buffalo
Pittsburgh
-
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29
WHitehall 4-3640
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Louis
Direct
Established
1924
Broadway, New York 6
Private
Wire to Cleveland
50
Broad Street, New York 4,
N. Y.
Telephone HAnover 2-4341
Volume 160
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4308
The
COMMERCIAL and
FINANCIAL
Amer. Furniture
Reg.
<
U.
CHRONICLE
S.
We
are
interested in
BEekman 3-3341
PREFERRED STOCKS
Herbert D. Seibert,
FEED
Feel
.
William Dana Seibert, President
.<
like
feeding those
Spencer Trask & Co.
Thursday, August 17, 1944
Actually, they're good for some¬
thing else!
We give cash for the
darndest
25 Broad Street, New York
issues!
Obsolete
Moore-McCormack
Published twice
.
every
week
a
"unmarket¬
able" stocks and bonds to
your pri¬
vate goat or dragon?
William D. Riggs, Business Manager
H.H. Robertson
DRAGON
Editor and Publisher
;
MergenthalerLino.
AND COMPANY
Public Utility and Industrial
SS
Spruce Street, New York 8
National Radiator
TEnsTEir
High Grade
:
Publishers
25
B. S.
offerings of
Patent Office
William B. Dana Company
Amer. Window Glass
683
Telephone HAnover 2-4300
Thursday
Teletype NY 1-1
Members New York Stock
99
WALL
Securities Dept.
STREET, NfeW YORK
Telephone: WHitehall
Exchange
4-6551
(general news and advertising issue)
STRAUSS BROS.
Members New
32
York Security
and every
Dealers Ass'n
Board of Trade Bldg.
Broadway
NEW YORK 4
CHICAGO 4
■
DIgby 4-8640 " Teletype NY 1-832, 834
•
.
•
Harrison 2075
Teletype CO 129
Other
Securities
Estate
York,
for quotes
Stock
St.,
by
as
William
B.
Dana
Company
second-class matter Feb¬
Other Publications
Bank and Quotation Record—Mth. $20 yr.
Monthly Earnings Record—Mth.. .$20 yr.
**
York
Salle
Subscriptions in United States and
Possessions, $26.00 per year; in Dominion
of Canada, $27.50 per year; South and
Central
America,
Spain,
Mexico
and
Cuba, $29.50 per year; Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
Newburger, Loeb & Co.
New
La
3, 1879.
CERTIFICATES
us
S.
25, 1942, at the post office at New
N. Y., under the Act of March
ruary
Department
TITLE COMPANY
.Members
1944
Reentered
Specializes in
Call
135
Offices:
Chicago 3, 111. (Telephone: State 0613);
1 Drapers' Gardens, London, E. C.,
Eng¬
land, c/o Edwards & Smith.
Copyright
Real
Our
Monday
NOTE—On account of the fluctuations
Exchange
in the rate of
40 Wall
St., N.Y. 5
Bell
WHitehall 4-6330
exchange, remittances for
foreign subscriptions and advertisements
must be made in New York funds.
Teletype NY 1-2033
Superior Rights For Interiors
(complete statistical issue—market quo¬
tation
records,
corporation,
banking,
clearings, state and city news, etc.)
■ <
By DONALD
Regard
Freedom, Equality And Justice Concepts As (1) Free¬
dom Without Responsibility—(2) Equality Regardless
Of Fact—(3) Justice As Absolution For Sin.
Considers
Government's Aid To Organised Labor By
Increasing Its Responsibility A Major
Blunder In Public Policy. Looks For Return Of Old Ideas
By Majority Of American People;
threatens
land
of
O
o
u
t.
which
for
Employ¬
From 53 To 55 Million Jobs,
Or In Excess Of Present
Volume—Predicts Serious Unemployment In Some Cen¬
ters But Total Will Not Likely Exceed 5 Million—Holds
Nation-Wide Unemployment May Be Avoided By Gov¬
ernment Expenditures And Large Consumer Demand j
Members New York
39
This
devel¬
free¬
first
»—»—
place that we
grant that the
decision
ond
to
work
seek
who do not.
success
it
is
the
tial
'
coa¬
Liberty Aircraft
Autocar Corp.
National Airlines
Bought
partner in
of
Richberg, Beebe,, Busick
Richberg is
a
Davies,
Donald
R.
& Richardson.
Richberg
<
Ill
make
to
her
or
that
mind
which
has
devotees
many
work. It means
as
corollary
a
-"•
that we should
build
r
e
g
a
An
t e d
tail
A. F. Hinrichs
groups
quickly
the
before
Dry
of
the
by Mr.
Post-war
National
He-
Association
Goods
at
Absecon, N. J., Aug. 9, 1944.
(Continued on page 697)
of
those who
delivered
address
Conference
seg-
up
*
Hinrichs
attempt to
not
able to find, work
"need" jobs and those
|
In
(Continued
and
Bell
on page
694)
[,
Cong. Robertson Warns Against Isolationist
I have had
•
j PHILADELPHIA, Aug. 16—The^
attorneys for the Securities Deal¬
Committee,
ers
A.
Kole
and
Messrs.
Abraham
Edward
M.
Metz,
Over-the-Counter Quotations
today visited by appointment the
office of the Securities and Ex¬
change Commission and conferred
ticipating
Loss, attorney for the
Division,
and
Joseph
with Louis
Trading
Keenan, in
how
soon
an
effort to ascertain
the Commission may be
expected to render a decision on
the pending 5% spread limitation
controversy.
-J | Messrs. Loss and Keenan were
pinch-hitting for James E. Treanor, Secretary to the Commission,
who was compelled to break his
appointment with Messrs. Kole
and Metz by reason of the illness
of his
son.
•
Securities Dealers Committee in¬
there¬
time,
I
can
merely
say
fore,
that
I
in
rehabilitation
decision
is
Healy
likely
to
come
program,
the total
the proposed
contribution of working capital on
of which far exceeds
am
ac¬
our
part to the
170 Broadway
effort
we
large a part
since
to
DUNNE & CO.
Members New York Security Dealers Assn.
25
Broad St., New York A,
(Continued on page 688)
past
gold
N. Y.
Tel. WHitehall 3-0272
export of American products,
sold to small banks and private
supply
gold
SECURITIES
war
of the world's
and
SUGAR
bank
supply the world with
dollars and to stimulate the post¬
own
COrtlandt 7-6190
Teletype NY 1-84
,
Bell System
in¬
should, one be
established.
In addition to that
our
international bankers, in an
ternational
i
international sta¬
bilization fund and also to an
objective of a
stabilized internationa 1
making a
survey
of market conditions as
affected by dealings in over-the^
,-it H
PANAMA COCA-COLA
counter securities.
asked
They
amine
the
certain
permission
data
Commission,
on
to
Dividends paid 1944 to
ex¬
file (with
dealing
-
over-the-counter quotations.
I
have
an
answer
Inquiry
was
whether
any*
competition
answer was
& Trust Co.*
31
*
Circular on request
was
.
with
"No."
the
NASD.
74
Established 1914
Second quarter analysis
available on request
C. E. Unterberg &
Hon R0SE S TRQSTER
into
pending for the approval of any
association under the Maloney Act
The
3.65
shortly.
also made
application
Warrants
Public National Bank
$4.50
-
Approximate selling price
.
in
-
1942
representatives of the Com¬
mission promised to take this mat¬
ter up with Mr. Treanor and to
American Cable & Radio
date — $2.25
Dividends 1943
with
The
-■
and
Purcell are now vacationing and
not
expected to return until'
about Labor Day.
Therefore,
no
\
dicated that they were
'
Commissioners
' i
1-2480
Segal Lock & Hdw. Pfd.
gold.
Following World War No. 1 our
Government made large loans to
our Allies to assist the
post-war
na¬
At this
tions.
so
During the course of the con¬
the
attorneys
for
the
ference
NY
Haloid Corp.
Laclede-Christy Clay Pr.
Miller Mfg. Co.
Policy
Since
shortly thereafter.
or
Teletype.
Gisholt Machine Co.
;; v
' '
exchange.
down until early in September,
System
Bartgis Bros.
Federal Screw Works
no
cord with the
♦;
Assn.
TRADING MARKETS
Paitidpation
World Organizations
Editor, Commercial & Financial Chronicle:
100%
"5%" Markup Decision Expected In September
Dealers
Broadway, New York, N. Y.
Advocates U. S.
our.
length of time
worker, a dis-.
new
Security
REctor 2-5288
"
he
to
wants
a
York
.
opportunity to study the final act of the Bretton
weeks; at worst, well within the.
Woods Monetary and Financial Conference and am, therefore, not in
period for which unemployment
a
position to >
compensation
is
provided — we
proven to be the most satisfactory.
comment on
shall have achieved our goal.
If
medium of international exchange,'
the details of
they cannot, to that extent we
I would naturally likeqtojsee the
the
plans
shall have failed. But to achieve
currencies of the majoth trading
agreed upon
this goal, wanting work implies
®
nations of the world, • geared to
by
the par¬
is the freedom
his
takes
Sold
lesce in a cult
—generally within a few days, or
of the, individ¬
ual
in the sec¬
—
J.F.Reilly&Co.
the Washington,1 D..C., law firm
for
mands
Buda Co.
Members
ab¬
as
Corp.
may
New
will be the
ers are
essen¬
freedoms
up
means
Teletype NY 1-1203
of
*Mr.
sin. These de-
charged soldier or a laid-off war
worker to find a job. If job seek¬
a personal
one'; that one
of
It
place that the measure of
Co!
Broadway
Cliffs
described as
superior
superiority
and the
rights of a master race have pro^duced a strong reactionary swing
responsibility,
(2) equality
regardless of
fact, and (3)
solution
statement
claims
without
justice
be fairly
', arouse
antagonism—by its apparent as^
sumption that some persons are
superior to others, and that ap¬
parently the speaker regards him¬
self as a superior person!
This
sounds like Nazi philosophy.
The
fact is that the Nazi—or Fascist-
justice
(1)
can
Our job in the post-war period is to make sure that everyone
who wants a job is able to find one. What does this mean? It means
the
Information
Security Dealers Assn.
HAnover 2-8970
,
in
QUOTED
New York 6, N. Y.
rights for inferiors.
ours.
f the
have
Will Require Labor Demand Large Enough For
Statistical
the cult of those claiming
this
astate
dom
ment
-
L I. GOLDWATER &
to
flood and dev-
and
Acting Commissioner of Labor Statistics
Complete
SOLD
-
A few streams of unsound thinking have risen and flowed to¬
gether in recent years to make a great, swollen river of bad ideas that
oped demands
Government Official Estimates Post-War Full
Increasing
BOUGHT
Its Power Without
dom, equality,'
By A. F. HINRICHS *
CERTIFICATES
R. RICHBERG*
Eminent Attorney Points Out Evils Of Trend To
original con¬
cepts of free¬
Outlook For Employment
TITLE COMPANY
Members New York
;
Trinity Place, New York 6, N. Y.
Telephone: BOwling Green 9-7400
'
Teletype: NY 1-375
61 Broadway,
Co.
Security Dealers Assn.
New York 6, N. Y
9-3565
Telephone BOwling Green
Teletype NY 1-1666
Thursday, August 17, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
684
BOSTON, MASS.
Girdler
Low-Priced Stock in
A
Corporation Stock
;
With
a
R. W. PRESSPRICH 8C CO.
Industry
an
Members New York Stock Exchange
Bright Future
a
Giant Portland Cement
Bought—Sold—Quoted
BOSTON:
(Pa.)
BANKERS BOND
™l
,
.
7
Glass, Com. & Pfd.
Bendix Home Appl.
Div.
Long Distance 238-9
.
'' *
•
*•
'
*
Knowledge
LERNER 8i CO.
POST
10
Bell Teletype LS 186
*
•
HUB
Cons. Cement "A"
Warren
Crowell Collier P. Com.
Bros. "C"
General Tin Investment
& Pfd.
H. & B. Amer. Machine, Pfd.*
Howard Stores, Com.
CHICACO
We Maintain Markets in:
CARTER H.C0RBREY& CO.
Common
Troy & Bennington R.R. Com.
Railroad Employees
Bought ——Sold
Middle West
Magazine Repeating Razor
Distilling*
Moxie
Security
York
New
Assn.
Dealers
Randolph
Riley Stoker
Bought
St.
"B"
Co.
Corporation
Eastern
H.
H.
Robertson
Loft
World
the
general ad¬
v
War
Candy
Marmon
Herrington
McFadden
herence to the
Pub.
Poiiak Manufacturing
Punta Alegre Sugar
gold
i
San-Nap-Pak
Talon
Transportation
Tokheim Oil Tank & Pump
United
Ciear
Wilcox
&
sta-
AH these complaints have been
reiterated from time to time since
before
John Law and Adam
Smith, but they were more for¬
cibly and more "scientifically"
presented by economists of the
modern
type,, such
as
Irving
Fisher, Gustav Cassel and John
Maynard Keynes.
e x
Gay
This
nations.
period* was
mmmm
ofinterna-
Airlines
Northeast
well
Amer.
Gas
American
Central
Conn.
&
Power
Wrnts.
&
Utilities Service Pfd.
Elec.
&
Light &
Tel.
Com.
Power
Com.
Cons.
Elec.
&
Gas Pfd.
Derby
Gas
&
Electric
Illinois Power Div. Arr. and Com.
Iowa Southern Util. Com.
Mass.
Power
Nassau
&
&
Lt.
$2 Pfd.*
Suffolk
Ltg. Pfd.
New Eng. Pub. Serv. 6% & 7% Pfd.
N.
Y.
Water
Service
Ptd.
Peoples Lt. & Pwr.
Puget Sound Pr. & Lt.
Queensboro Gas & Elec. Pfd
General
Instrument*
<
Request
Chicago Tractions
adjustments. The classic Ricardian
theory that the distribution and
flow of gold among the nations
tends
toward
a
common
level
operate.
The system
banking, with gold re¬
maintained as a backing for
to
serves
note issues, had become
or severe
commercial
purchasing
power of gold may have fluctu¬
ated from time to time, with re¬
sulting changes in price trends,
these occurred, as a rule, simul¬
taneously in the leading countries,
so
Though
there
were
the
few
occasions
for
of
throned"
REctor 2-8700
Direct
wires
to
NY
Boston
1-128£|
&
Phila.
ENTERPRISE 'PHONES
Hartford
6111
—
Buffalo
6024
en¬
PH 30
Phone to
Private
N. Y. C.
COftlandt 7-1202
San Antonio
Houston
St., Philadelphia 3
Pennypacker 8200
A.
Wiesenberger Go.
CURRENT INFORMATION
and head of the Clearance De¬
always
partment of the Trust Company of
North America to accept an ex¬
&
Wiesenberger
i
61
Co.,
Send
Broadway, New York City.
Mr.
office
the
over-the-
all
and
foir
our
current report on
Sierra Pacific Power Co.
supervise
will
Adell
general
on
SECURITIES
Stock
Arthur
available
PACIFIC COAST
position with the New
Exchange
firm of
ecutive
York
MARKETS
and
Jules Adell has resigned as offi¬
cer
FRANCISCO
SAN
Jules Adell Joins
H. R. BAKER & CO.
counter activities of the brokerage
bound
as
an
dent from the
international
mon¬
taken by
measures
various
nations to acquire gold
international exchange pur¬
for
He
in
reciprocal
for the past
14
The
instances
World
;
the
and
these
of short duration;
even
in
this
"golden age"
defects
of
a
currency.
There
were
rumblings
of
complaints
against the "inadequacy of gold,"
of its power to hinder free ex¬
is
academic
Even
which
out the
War
<an
to
the
that
indication
attacks
a
first
against the
gold standard met with little suc¬
in
based
currencies
following
basis
cess.
pointing
Great Brit¬
nations underwent
their
restore
gold
period of international monetary
stability, economists were active
metallic
struggle which
and other
ain
and
other
had
the
South
American
undeveloped countries
been operating on a
gold
standard
paper
basis, attempted to establish
and
Mexico, though still
India
years..
(Continued
America
Russ
650
BIdg.
S.
So. Spring St.
Los Angeles
San Francisco
L.
196
F.
42
A.
,
NSTA Advertising
committe is
ViceChairman, A1 Tryder, has pro¬
duced over $1,000 in contracts in
these
past two days, which is
Your
advertising
anxious that you know your
credited to the Investment Trad¬
of'"Philadelphia.
Association
ers
This
brings
$10,000, but
our
we
gross total over
still have another
10 days to go,
and we are certain
this
will
amount
currencies.
on
page
Both
698)
increased.
be
A1 deserves much credit, but like
politician,
good
a
brings
he
in
By
late, but surprising, returns.
the way, A1 will become associ¬
ated with W. H. Newbold's Son &
Co.
on
Our
Sept. 1.
old
in
ago
and
in
ness
"Chronicle"
lished
Johnny O'Neill
Boyce, Baltimore,
voluntarily
a
offered .his
Baltimore.
It
is
which
Aug. 31?
will
be
pub¬
Let's see.
K. I. M.'
Harold
B.
Smith,
Chairman
NSTA
Advertising
Committee,
Collin, Norton & Co., 30 Pine St.,
New York 5, N. Y.; Alfred W.
Tryder,
Vice - Chairman
NSTA
Advertising
Committee,
H.
T.
Greenwood & Co., 123 So. Broad
St., Philadelphia 9, Pa.
Nat I
Stamping Looks Good
National
Stamping
Co.
offers
interesting possibilities, according
to
friend
few days
services in
helping your advertising commit¬
tee. ' Johnny is a swell character,
and he has produced some busi¬
called
Notes
Members:
Fellow
of Stein Bros. &
poses.
inter¬
exchange rates.
associated with the
was
Wars also dis¬
etary medium. In fact, its impor¬
tance in this connection, for a
time was intensified as was evi¬
to
But
Security Dealers Assn. i
BOENNING & CO.
DALLAS, TEXAS
'
disturbances
were
Y.
the
ships and thus tend to disturb the
established
equilibrium
in
the
distribution of "the world's gold
reserves.
As a result, the United
States, before it entered the con¬
flict in 1917, together with a few
other
non-belligerent
countries
whose exports mounted because
of the war, greatly increased their
gold holdings at the expense of
the warring nations. But, despite
the paper money regime that ex¬
isted in most European nations
during and following the war,
gold was not permanently "de¬
quotations,
BROADWAY, NEW YORK 5
RAUSCHER, FIERCE & CO.
redemptions
serious magnitude, are
a
to have this effect.
In fact,
the "gold points" were rarely ex¬
ceeded in international exchange
120
Stocks
rupt international trade relation¬
national
Members N.
Co.
Common Stock
1606 Walnut
ally, there developed a disequilib¬
rium^} i L a was soon corrected by
international loans or trade re¬
■
L
on
& Paper
Southwestern Securities
Trust Company of North
crises.
Mallory
Stromberg Carlson
Submarine Signal
Circular
on
gold movements. Modern wars, if
disturbances
R.
*
us
throughout the world in ac¬
with
commercial
and
financial needs.
When, occasion¬
cordance
fected without domestic monetary
,
Detrola
Magnavox Corp.*
Majestic Radio & Tel.*
P.
Check
continuing interest in:
a
Ry. & Terminal 6% 1951
firm.
leading countries, while interna¬
tional payments and settlement of
international
balances were
ef¬
"A"*
of
the
was
and
countries
ligerent
firmly established in most of the
Radio
International
Dallas
forcement of severe restrictions on
of central
ELECTRONICS
one
by the central banks of the bel¬
Sakolski
distrib¬
currency
Emerson
M.
1914,
effects
immediate
War
European
abandonment of note
A.
uted
seemed
Scranton Springbrook Water Pfd.
Southwest Pub. Serv.
Du Mont Lab.
its
supply of
monetary gold
was
fairly
Airlines
first
broke out in August;
The
relations.
Airlines
the
When
trade
tional
Mid-Continent
age"
"golden
Airlines
National
-
the
indeed
American Export Airlines
Chicago & Southern Airlines
Inland
the days of
ienced
trading
p e r
among
Gold
Consolidated
Yuba
"B"
have
olization of its supply.
t ernational
never
Whelan
"A" &
Drill
United
n
exchange
&
PH 265
and the
b i lization
v
Terminal
—
N. Y. WH 3-7253
Southern Advance Bag'
Pepper
All Texas Utility Preferred
fluctuating volume of production,
manipulation and monop¬
standard
had created an
Remington Arms
r
Quoted
-—
So'western Pub. Serv. Com. & Pfd.
change and the flow of goods; of
its changing value In relation to
other
commodities,
and of its
I,
>'■
362
ceding
Co.
Lawyers Mortgage
request
Philadelphia 2, Pa.
Phila. RIT 4488
Southern Union Gas Common
of a century pre-
this, despite the fact that for more than a quarter
Industries*
American
Great
British
economist, when on September 21, 1931 the Bank of England was
ordered by the British Government to cease the redemption of its
notes in gold. This remark, in essence was uttered by other econ¬
omists and monetary theorists throughout the civilized world. And
Brockway Motor*
>
Philadelphia Stock Exchange
Bell Teletype
Republic Insurance
.
Axton-Fisher
Sold
Dr.
,
rid of the Gold Standard", exclaimed a
.
DALLAS
Revive The Gold Standard?
"At last, we are
on
Walnut St.,
1529
We
York City
"» v
Members New York Stock Exchange
Teletype—CG
3002
Will Bretton Woods Agreement
By A. M. SAKOLSKI, City College, New
•>'
'
.
BUCKLEY BROTHERS
Members
Title Guar. & Trust
Triumph Explosives
Wickwire Spencer
.
Memo
CHICAGO 3
Southwest Natural Gas
'
Common
MARKET
135 S. La Salle
.
Scovill Mfg.*
"
-
Public Service
DISTRIBUTION
WHitehall 4-3990
System Teletype, N. Y. 1-2480
Bell
i;,
j
Pacific Coast
—
SECONDARY
4, N. Y.
25 Broad St., New York
HEctor 2-5288
Nu-Enamel
f
and
INC.
Broadway, New York, N. Y.
Ill
i
Central Vermont
For
George R. Cooley & Co.
Members
Merchants
;
UNDERWRITERS
J.F.Reilly&Co.
Liberty Aircraft
S
r
Wholesale Distributors
Pfd.
U. S. & For. Sees. 2nd Pfd.
Interstate Bak. Com. & Pfd.
Buda
*
Teletype BS 69
Fonda, J. & G. (All Issues)
Lock Joint Pipe
Car
Facilities
•
for Investors
.
SQUARE
MASS.
9,
1990
(All Issues)
No. Amer. Cement
Consolidated Textile & Bonds
Auto
,
PHILADELPHIA
Light & Power Com.
Purolator*
Experience
•
.
OFFICE
BOSTON
Tel.
BONDS
STOCKS
Copies
Me., Prior & Stpd Pfds.
Boston &
MUNICIPAL,
INDUSTRIAL
8C
19 -20
Ctfs.
St.
RAILROAD, PUBLIC UTILITY
2%
Circular Available—Send for
HOME LIFE BLDG.
Bird & Son
Conn.
-
INVESTMENT
LOUISVILLE 2, KENTUCKY
|
Arrears
Devonshire
201
GOVERNMENT,
2 9/16
INCORPORATED
.
.
1st FLOOR, KENTUCKY
American Hardware
Amer. Win.
Stocks
New York
William Street,
68
a
report prepared by Mercier,
Dolphyn, Buhl BIdg.,
McDowell &
Detroit,
this
of
Mich., members
Exchange.
Stock
Detroit
report may
of the
Copies
be had from
the firm upon request.
*
-
Attractive Outlook
alsc
Portland
Florida
Cement
Co.
pleasing to note that Ray Bernardi
of Cray, McFawn & Co., Detroit
has
sending in contracts. Many
Ray.
Keep it up!
Re¬
member, we are still taking ad¬
ing to a study of the situation pre¬
pared by G. A. Saxton & Co., Inc.,
70
Pine
St.,
New
York
City.
is still
thanks,
vertising contracts up until Aug
28.
in
Will your firm be represented
the
NSTA
supplement of
the
an
attractive outlook, accord¬
Copies of this interesting study
be had from the firm upon
may
request.
-
V
'
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4308
160
Piper Aircraft*
-
INTERESTING V
SITUATIONS
Send for
Douglas Shoe
(
Common
Common and Preferred
Electrolux
r
120 Broadway. New York
Co.
Phone:
Bell
'
: ' 7
74
Direct Wires to Boston & Phila.
Enterprise
'Phones
Hartford
Abitibi Power & Paper Co.
request
on
Brown
Fanny Farmer Candy
Trinity Place, New York 6, N. Y.
National
Security Traders Association
Noranda Mines
Sun Life Assurance Co.
To Hear P. L Smith At Annual
Meeting
Middle West Corp., will address members
of the National Security Traders Association, Inc., at their annual
P. L. Smith, President,
Former New York
President Of Associated
Voluntary Effort Fails—Says Danger Is Not In Compul¬
sion But In Bureaucratic Centralization
The need for
cooperation between the proponents of compulsory
and the advocates of voluntary efforts to protect the
public against v
social security
.
^
illness,
erty,
pov¬
and un¬
expected ca¬
tastrophes was
stressed
by
Louis H. Pink,
President of
the Associated
Hospital Serv¬
ice
of
New
Louis
H.
other.
each
important form of social security,
is in this country and Canada. We
lead the world in group insur¬
Pink
American phi¬
government and the
American way of life.
be based upon the
losophy of
seek today," said
Mr. Pink, "is reasonable certain¬
ty of fair employment, and free¬
dom from the fear of want. They
also Want to' save their children
and their children's children from
another devastating war. For ful"What people
fillment, these desires are depen¬
dent upon each other. We cannot
have- security at home unless we
have cooperation in international
affairs.
Even
with the best of
laws
and intentions, no
nation
for
"Some Practical
Phases of Post-War Municipal Fi¬
nancing." Ralph Chapman, Chair¬
man of the NASD, will preside at
nicipal forum
the
and secure un¬
other nations are also pros¬
which
group
for itself. The
not need it, and the poor
is able to provide
rich may
taken
be
care
-Fred
less
perous
"A
social
and secure.
great many people look to
security, which too com¬
monly
the
on
implies some compulsion
part of government, for
against want. Social
security is one of the most helpful
protection
on
The
V
plans have made less
profession is
waking up to its responsibility
not only for providing good med¬
ical
the
but
progress
4:15 p.m.—P.
well
as
A. W.
Tryder To Join
bold's
Co.,
and
o
f
Philadel¬
d e-
for
Tryder
o
f
Municipal
Commercial
Chronicle,
New
York
Co.
&
Financial
25
8, N.
St.,
Spruce
was
&
he
Yeatman & Co.,
manager of the trad¬
with Suplee,
Inc. and
was
ing department for Edward Lowber Stokes & Co. He is vice-chair¬
man
advertising
of
Investment Traders Associa¬
of
the
committee
Y.
T.
Prior
thereto
The
16,
H.
Greenwood
Tryder
W.
Many years' ex¬
S
6s,
the
NSTA
and
is
a
Philadelphia.
in
a
position
final
act
of
German
the
it
usher
as
in
'D'
comes
with
now,
the
should
buying than
it is further
more
even
followed
day,"
stated.
Market February
"The longer term,
1945
i.e., popular¬
ity six months
much
more
or more, is very
difficult to correctly
This means attempting
the dominant factors of
February 1945. Will Germany be
defeated as expected before win¬
forecast.
to
gauge
ter?
How
will
Who
look?
we
be
Oriental
the
be
will
thinking
is
4s,
5
'
1968
Tyler Building (N. Y.)
6s,
1953
Frederic H. Hatch & Co.
Victory
Market and
Business
WE BUY
New York Stock Ex¬
position of the stock
|iiBONDs.;|:;l|
market break" that
a
•;
•»
»■
>•'
!
■
early surrender
an
77'
with
war
ment
With
nate? 7
If the latter, will
it be a
deflatiorj, unemploy¬
ment or will it be1 a'period of en¬
thusiasm as to the future?
the
coming
of
•
wars
GUDE, WlNMILL & CO.
peace
Members New York
of rebuilding wealth
will again begin. With this coun¬
try dominant in the world and all
the intellectual power which we
turned to the problemsh of war
focused on the opportunities of
peace, it
transition
we
would
time
American Maize Products Co.
General Tin Investment
at a rather
Tokheim Oil Tank &
"However, both these points of
forecasting
business and economic develooments.
There
is
no
possibility
view
are
efforts
v
Universal Match
any
chronize
its
Frederic H. Hatch & Co.
in correctly
far ahead and to
what degree coming events will
be discounted in prices. The mar¬
ket profits in the war stocks came
almost entirely in the peace pe¬
market profit lies
riod
Pump Co.
at
market will ever syn¬
peaks, valleys and
trends with actualities.
The key
that
N. Y.
Teletype NY 1-955
DIgby 4-7060
judge and that prof¬
now
Stoc$Exchange
1 Wall St., New York 5,
seem as 'if the
will be shorter
its generally will hold
even keel through it.
gauging
time of fear,
the
process
to
a
time
additional
then
of
Coupons Missing
destroyed by wars in
precise proportion to every mo¬
63 Wall Street
,
Bell Teletype NY 1-897
permanency
in* the
latter
level
they hope for now. Some
marginal
motor
and electronic
than
earnings mate¬
Actual war earnings had
before
rialized.
Incorporated
New York 5, N. Y.
how
war
little effect when published. < $9 corporations may fail to even ap7
argument rests
per share net for New York Cen¬ proximate the post-war net dis¬
very much on the certainty of a
today's prices, - with
tral did not cause it to sell at $90. counted in
drop in business and employment
resultant declines.
in the transition period sufficient And, likewise, the decline in New
"'Distribution' as one popular¬
York
Central earnings,
already
to upset the markets and provide
under way, is not going to cause ly attempts to gauge it has not
an
opportunity to buy equities
occurred to as great an extent this
a comparable contraction.
cheaply for the equally certain
"In fact, the changes which are
deferred demand and reconstruc¬
year as it
did previous to the
"The
bearish
tion recovery
which will follow.
Transition Period Short
"The bullish point of
view
be exactlv the 1943 decline. The top prices for
Central may sell higher
stocks are more likely to occur
earning $3 than earning $9 if in^
(Continued on page 703)
vestors see a greater degree-fof ;
going to
occur may
opposite.
governor
con-
'1 ,>w
* V;' f i -'
Vis, 1951
5s,
7 meeting
'
•
"7-
f
,
1948
Peoples Gas Co. (N. J.)
always
President?
longer war than we now expect
or will peacetime problems domi¬
>
.1'
.
Eastern Minnesota Power
that rooms will be
immediately on arrival
so-called, of
than
The
••
tion of
1946
East Coast Public Service
the morning of Aug. 25.
the
seem
stands
Will
formerly
manager
Ex¬
Box
the
1975 ?
guarantee
available
last.
if
Street,
Department
business.
possibilities,
the review.
it
&
Son
the New York
the
investment
unfavorable
"The
1517 Lo¬
cust
employed, desires
the
Toronto
Community Water Service
arrive Thursday after¬
Aug. 24, as it is impossible
.
market
members
Trctdsr & Street Men
in
attending
5s,
%
arrange to
August issue of the "Fortnightly
Survey," E. F. Hutton & Co., Members of the
change, point to the strengthened technical
market arising from the "fear psychology of
was in evidence before "D" day.
surrender,
will be¬
H. New-
Tryder as of Sept. 1
come associated with W.
Alfred
2-0980
1-395
Montreal
American Water Wks. & Elec.
once
to Leo
J. Doyle,
O'Connor & Co., 135 So.
La Salle St., Chicago, 111., with
checks
payable to
the
NSTA.
Larry Higgins of Hulburd, War¬
ren
& Chandler, is supervising
hotel reservations, but it is sug¬
gested members send the reserva¬
tion cards directly to the Palmer
House.
Also it is suggested that
to
HAnover
Teletype NY
'7,i
.
at
noon,
St., N. Y. 5
Bell
Advance registrations should be
those
WILLIAM
New York
m.—Closing Reception.
The Market After
where
PHILADELPHIA, PA. —Alfred
W.
was
perience
4:00 p.
the
"Stocks
W. h, Hewbold's Son
Mr.
listed firm.
America."
52
Incorporated
New York 5, N. Y.
Strength After Surrender Day
partment.
un¬
Meeting; Election of Officers.
1:00 p.m.—Luncheon; speaker,
Hon Fred E. Busbey, "Wake Up
Bell Teletype NY 1-897
tinues
(Continued on page 699)
trading
grade
HART SMITH & CO.
m.—National Committee
a.
63 Wall Street
and unemploy¬ near-term position is better and
continue to find
ment insurance, old age and sur¬ traders should
vivorship insurance, help protect profits, buy—on weak days," con¬
they should be
and supplement
Stock
"Outlook
compensation
as
complementary
high
Saturday, Aug. 26
10:30
among
tile, when in fact
with
Royal Bank of Canada
the people. All by Germany on business and tht^
types of protection as market have been very much to siders that the moment the war
the compulsory types such the fore.
Thus the short-run or ends its waste ceases. Real wealth
widely
hos-
connection
m.—Informal Reception.
p.m.—Dinner;
speaker,
voluntary
vol¬
change
L. Smith, Presi¬
dent Middle West Corp.,
it
spreading
for
but
care
Imperial Bank
Post-War
Doyle,
Friday, Aug. 25
Dominion Bank
Provincial Bank of Canada
7:00
sent
'
^
Hon. Lyle H. Boren.
complete program for the
meeting is:
In
-
phia
Stock
Exchanges, as
manager
o f
the municipal
pulsory social security and
untary efforts are pictured as
or
final day.
His subject is
Up America."
•
the
"Wake
the Wag¬
for the indigent.
agencies and many nations have
gone
far- along this road. The
Beveridge Plan has aroused un¬
usual interest not only in Britain
but in many nations, including
the United States. Too often com¬
Presently
Congress¬
of Illinois
forum.
Busbey
E.
will address the luncheon meeting
Bill does not pretend to care
"Medical
in
of by any
insurance scheme—even
ner
Utilities
Public
6:00 .p
on
corporate
man
large proportion of
income
middle
the
)
Era."
the opening day, and
A. Matter, Chapman &
Cutler, who will address the mu¬
be prosperous
can
;
meeting
Joseph
"
Canadian Bank of Commerce
dinnei^
which
ance,
cannot
*
embraces
protect
against illness, poverty and unex¬
pected catastrophes. Seventy per
cent of life insurance, the most
will protect a
i
security
to
effort
voluntary
Referring to the world-wide in¬
terest aroused by the Beveridge
.Plan Mr. Pink declared that an
American Beveridge Plan must
.
It
insurance.
ernment
all
social
True
than compulsory gov¬
means more
homa, who will speak at a
'
Bank of Nova Scotia
.
Other speakers will be Congressman Lyle H. Boren of Okla¬
is inexpensive and ]'
9:00 a. m.—Registration,
author of provides many types of protection
j 10:30 a. m.—National Committee
"Freedom for the employed worker.
The
Meeting.
from Fear" at Blue Cross Plans span the country
1:30 p.m.—Municipal Meeting;
a
meeting of with hospital care for almost 15
A. Matter, Chapman &
the Kiwanis million people, and they are only Joseph
Club of New 10 years old. In some cities half Cutler, "Some Practical Phases of
York held on of the population belongs to the Post-War
Municipal Financing."
Aug. 9 at the Blue Cross Plan. These hospital
4:00 p.m.—Corporate Meeting;
Hotel McAl- plans are growing very rapidly
pin,NewYork. and in another 10 years probably Ralph Chapman, Chairman NASD.
and
York
I
Bank of Montreal
public utilities in the post-war era, Wm. Perry Brown of Newman,
Brown & Co., New Orleans, President of the Association, announced
today.
-
Steep Rock Iron Mines. Ltd.
meeting, Aug. 25 and 26, at the Palmer House, on the outlook for
Superintendent Of Insurance And
Hospital Service Maintains That
Government Should Take Up The Work Only When
.
Minnesota & Ontario Paper Co.
NY 1-375
Teletype:
;
Compulsory And Private
Social Security Essential: Pink
:
International Utilities.
BOwling Green 9-7400
Telephone:
6111—Buffalo 6024
Company
Electrolux
' Established 1914
/
,
.
Preferred
HonRssEStem
2-8700
REctor
Teletype NY 1-1288
Members New York Security Dealers Association
1928
Established
and
Common
*Circular
&
77-
' '■
Preferred
and
American Bantam Car
;
Special Circulars
Ward
685
h .hi "d
,'7
•
M
.
THE COMMERCIAL & FINANCIAL
686
CHRONICLE
Thursday, August 17, 1944"
Broker-Dealer Personnel Items Tomorrow's Markets
If you contemplate making additions to your personnel
please send in particulars to the Editor of The Financial
Chronicle for publication in this column.
SOUTHWESTERN
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
PUBLIC SERVICE
LOS ANGELES, CALIF.—WilHILLS, CALIF. —
Philip D. Allison has joined the lard A. Campbell has joined the
staff of E. F. Ilutton & Co., 463 staff of Cruttenden & Co., 634 So.
BEVERLY
COMMON
North Rodeo Drive.
Bought
—
Sold
—
He
pre¬
was
Spring Street.
viously with J. A. Hogle & Co.
Quoted
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
Mains has been added to the staff
of W. II. Bell & Co., Inc., 49
1879
Fed¬
eral St.
LOS
J.
MASS.—William
BOSTON,
Paine, Webber, Jackson & Curtis
ESTABLISHED
/
J
ANGELES, CALIF. —Eu¬
Ellery, Jr. has become asso¬
gene
previously
was
MASS. —B. Edwin
with Trusteed
Funds, Inc., 89 Broad St.
BOSTON,
Securities
is
Redden
& Co.
BOSTON,
MASS. — Barbara
Hughes has joined the staff of
Whiting, Weeks & Stubbs, 36 Fed¬
making rapid strides in the past year towards putting its financial
The company became over-capitalized back in the
1920's when it took over from its parent company certain railway
house in order.
and terminal
dends
on
had accumulated in 1937, a
recapitalization
preferred stocks
holdings cut in half,
obtaining
$2.50
new
preferred
share for share (plus a share of
Holders of the old
had
their
common
and
"dividend arrears
a
Due to liti¬
certificate" of $24).
gation by holders of the old pre¬
ferred,
dividends on the
new
stock (though fully earned) were
not paid until 1941.
While pay¬
ments have been in excess of the
the
amount
or
but the writer's
is that some $10-15 million
might be granted, and this could
readily be realized through sale of
part of North American L. & P.'s
Power had
tion
with
applying the cash to
Later it was able
a
net
of
strong current posi¬
assets of nearly $7
to refund nearly all
debt,
placing
bonds
with
a
the remaining
some
$65,000,000
large group of in¬
call
certificates
for
reasonable
the
of
settlement
with Merrill
has
become
connected
J
■
Grimm
is
ORE. —Elizabeth
with
Fenner
Merrill
&
Wilcox
Mr.
Hodges was formerly with
Granberry & Co., W. L. Lyons &
*'
Co. and W. D. Gradison & Co.
PORTLAND,
ORE.—Ralph R.
formerly
with
Hess & Butchart, has become af¬
Jr.,'
Macartney,
filiated
with
John
Galbraith
&
James
Darst & Co., Southeastern
Bldg.
the
1942
stock,
common
Terminal Railroad Co.
This
ST.
Chronicle)
Florida National Bank Building.
■
earned net income of over
sold as low as 5/16 (about 310). $1,500,000 in 1942 and over $1,000,Last year earnings increased to 000 in 1943. It paid $500,000 divi¬
$2.64 and current figures
(not dends in each year to Illinois
available) would probably be bet¬ Power (plus a still larger amount
ter.
The common stock has ad¬ in interest), and excess earnings
vanced to 8% (this year's range were not included in the Power
Co.'s
income
statement.
These
10%-4I/4).
i Meanwhile
the company is try¬ earnings - constitute
a
"hidden
ing to recover some $40,000,000 equity" but they reflect wartime
($26,586,787 plus interest) from conditions. Illinois Power would
North American Light & Power like to sell the road, but thus far
Co. and the latter's paper subsidi¬ has been unable to find a pur¬
ary, Illinois Traction Co. Illinois chaser. The sale of the property,
Power has also extended its claims if effected, would permit further
to include North American Co., reduction of funded debt. Failing
which controls No4h American in this objective, it is barely pos¬
Light & Power.
Some of these sible that the SEC might earmark
claims pertain to transactions dur¬ future earnings on common stock
ing the late 1920's, which in ordi¬ for debt reduction because of the
nary court proceedings might be high
debt ratio.
Prospects for
too old for consideration, but this dividends on the common stock
limitation probably does not carry are therefore subject to a variety
weight with the SEC. Once the of factors and contingencies, but
amount of these claims is settled certainly
the outlook is much
North American Light & Power more hopeful than two years ago.
Will be liquidated. Here enters a
problem of subordination or re¬
Attractive
though
$2.26
earning
per
share,
pany
'jj
(Special to The Financial Chronicle)
LOS ANGELES, CALIF.—James
Kent is now connected vfith
D.
interest, which has been taken to
Situations
the
courts..
Obviously,
however,
the size of Illinois Power's claim
(if any) is the first problem to be
settled.
Once this has been fixed
by the SEC other matters
settled
course
by
compromise.
may
It
is
be
of
Piper
Aircraft common and preferred
offer attractive situations, accord¬
Panama
Coca-Cola,
and
(Special to The Financial Chronicle)
WEST PALM
&
BEACH, FLA.
—
McKinnon, 319 Clematis Street.
(Special to The Financial Chronicle)
■
LOS
ANGELES, CALIF.
win W. Widney
with
621
is
now
—
exciting of the
developments was the
Tuesday's flash that the Allies
had made new landings on
war
South
while
the
Bingham, Walter & Hurry,
WORCESTER,
market
A. Tsianco is
now
Helen
—
affiliated
with
Hanrahan & Co., 332 Main St.
'
Ratification of the Bretton Woods International Monetary agree¬
ments, according to Senator Arthur Capper (Rep.-Kans.), should be
decided "as provided by in Constitution, .by the Senate of the United
In
Associated
Press advices from Washington Aug. 13, as
given in the New York "Herald Tribune," Senator Capper is reported
as saying that
"a proposed fund and bank both apparently would
have power to 'nullify' our tariff*
laws and," he added, "that 'some ter of a trillion dollars.
of
our
tariff
laws
I might add that the impression
from
time
to
.
but
time
should
they
be
should
be
Congress, not by
an
Fund
by
Board
or
modified,
by
modified
International
an
Interna¬
one
from a first glance at
proposals becomes stronger
gets
these
at
second,
glances. ;
third
and
fourth
Any proposals to make every¬
body in the United States pros¬
perous
through payments. from
the Federal Treasury should be
studied
carefully.
"Chronicle," Senator'Capper said:
Any proposals to make all the
The
Bretton
Woods
program world prosperous, happy and con¬
seems
to me to be open to the tented through funds provided
by
definition that it proposes to make the Federal Treasury also should
all
Midland Utilities 6s 1938
happy
and
prosperous
and
very
be studied with great care
before
provided
United
At
through
largely from the
States.
he
first
made
it
Yet
news¬
left
the
strangely untouched.
refusal
confusion.
piece of
to
act
one
way
deepened the
Here
was
big
a
the boardroom
news,
watchers
argued, and still the
proof that prices were on
edge of falling off and
you'd better watch out.
the
*
Both
JjS
SjS
statements
beliefs
or
interesting but have
are
little
market
life
do
to
as
that
the
with
the
as
stock
discovery that
a
exists
Mars.
on
Fact
announced
in Southern France
is
landings
were
dis¬
by the market some
time ago. I don't mean that,
the market actually knew of
these
a
assumed
'we
will
learn
later
whether the U. S. Government is
But
occurrences.
once
trend is established the odds
in favor of this trend con-,
tinuing until something comes
along and changes it. When
we
made
first invasion—•
our
D-Day — it was obviously a
nip and tuck affair. As we
deepened our advances it be¬
clear that
came
whip hand.
forward
it
sented
to
had the
we
From that time
was
no
hope of victory that
It
us.
longer
a
was pre¬
was
a
cer¬
tainty. The trend for victory
been
had
established.
that time forward
From
practically
anything which happened on*
the fighting fronts would,
hasten the day when the ac¬
tual
day of victory would
come.
(
,
*
.
*
market
The
of
what
it would
as
always
many
Before
*
realizing this
affairs decided then
state
contented
being adopted.]
"Asserting that the world fund
Treasury of the'United States, and and world bank proposals were
through a world bank financed referred to as agreements rather
largely by the Treasury of the than treaties, Mr. Capper said
funds
England Gas & Electric 5s 1947-50
world
the
France.
another has
Chronicle)
MASS.
Cupper Fears Tariff Uws Might Be "Nnllifietl"
By Inlenalienal Monetary Pacts
States."
of
news
headlines
paper
are
(Special to The Financial
Er-
affiliated
South Spring Street.
*
counted
Walter G. Jester is with Thomson
Searl-Merrick & Co.
ing to memoranda just issued by tional Bank Board on which the
Hoit, Rose & Troster, 74 Trinity UnitedStates
representatives
Place, New York City. Copies of would have
only 28% and 27% of
these interesting circulars mav be
the voting strength respectively.' "
had upon request from Hoit, Rose
[In a statement prepared for the
impossible to predict either & Troster.
New
was
Harris & Co.
..
duction of the North American Co.
Chapin
previously
with J. A. White & Co., Ryan,
Sutherland & Co. and Stranahan,
Bankamerica Company, 650 South
Spring Street.. Mr. Kent was pre¬
viously with Fewel & Co. and
'
Mr.
❖
most
was
PETERSBURG, FLA.—A.T.
Moorefield is with Cohu & Torrey,
Ohio.
com¬
watchers
news
market didn't go up. Others
said this refusal to advance
Company, Porter Building.
(Special to The Financial
—
A. Love, Jr. is now with Thomas
made
then the
The
or
(Special to The Financial Chronicle)
GREENSBORO, N. C.
outstanding
from the
fronts kept them wide¬
awake.
This
(Special to The Financial Chronicle)
against the parent com¬
companies. This left only
(Special to The Financial Chronicle)
$6,000,000 debenture 5V2s, which pany. This would in turn- clear
(Special to The Financial Chronicle)
HIGH POINT, N. C. — Charles
the way for common stock divi¬
Will probably .be refunded next
TOLEDO, OHIO — George E.
E. Diffendal, Jr. has been added
dends, unless the SEC should re¬
year. The company has thus im¬
associated
has
become
to the staff of Kirchofer & Arnold, Chapin
proved its earnings, though taxes strict such payments.
with Ilayden, Miller & Co., Union
The company would like to sell Inc., Insurance Building, Raleigh,
absorb a substantial part of the
Commerce
Cleveland,
Building,
its large railroad property, Illinois N/C.^/kk^
gain.
In
The
action
tape
yawn
Lynch,
Beane,
Building.
Lynch, Pierce, Fen-
mar-
seems
the
(Special to The Financial Chronicle)
PORTLAND,
with Sills, Troxell &
Beane, 330 Walnut Street.
happened
But if
claims
surance
•
has
#
WIS. —Monnie
consin Ave.
CINCINNATI, OHIO — Roy A.
has
become
associated
about
$11,600,000, or a total of $15,150,000.
This could probably be paid
off out of surplus cash, plus any
Little
ketwise since the last column
war
Elholm
Hodges
&
F.
with Budd L. Sholts, 61 West Wis¬
previously with the
and prior
was
(Special to The Financial Chronicle)
ner
WIS.—Oscar
way.
Reserve Bank,
was
Minton, Inc.
Illinois
1943
million, and this excess cash was
apparently only partially used in
connection with the big refunding
rears
Stolp
Federal
thereto
Salle St.
So. La
&! Co., 208
|
By WALTER WHYTE
to have been dullness.
Chronicle)
Loeffler is with Paine, Webber,
Jackson1 & Curtis, 605 No. Broad¬
Pierce,
end
the
At
,
debt reduction.
Mt.
portfolio,
regular $2.50 amount, arrears of
operation in February. Preferred
$7.35 V2 still remain.
:
Last year the company sold its dividend arrears amount to only
Iowa subsidiaries for a substan¬ about $3,550,000 and dividend ar¬
tial amount,
Case
guess
leaves market cold.
on
post-war plans
increasing in boardroom
circles. T$pe action, however,
points to higher prices.
(Special to The Financial Chronicle)
has become associated with G. J.
successful claim,
news
Pessimism
appeared.
MILWAUKEE,
CHICAGO, ILL.—Ray N. Stolp
the timing of any
Co.
,
(Special to The Financial
to The Financial Chronicle)
(Special
partial
proposed.
was
omitted and after some $24 arrears
War
feature of transactions
eral St.
As a result of its heavy bonded debt, divi¬
properties.
the preferred stock were
Pacific
Bingham-Walter
MILWAUKEE,
(Special to The Financial Chronicle)
(formerly Illinois Iowa Power Co.) has been
Illinois Power Co.
with
now
Illinois Power's Progress
:-v-v
Says—
ciated with Harris, Upham & Co.,
523 West Sixth Street. Mr. Ellery
of California and
(Special to The Financial Chronicle)
Public Utility
Walter Whyte
its
And
just
decision
left
do.
people high and dry.
D-Day the belief that
(Continued
on page
699)
379, 388 and 390; the sumof the agreement appeared
Aug. 3, page 518; also
in our Aug. 3 issue, page 486, we
377,
mary
in issue of
glance all this might
putting a pretty heavy to be bound to them by executive
upon the Treasury
of the agreement,' or whether they are noted that Senator Taft had in¬
United
States, considering that to be ratified as treaties by the dicated his support of Senator
seem
to be
load
Gilbert J. Postley
29
&
Co.
BROADWAY, NEW YORK 6, N. Y.
Direct
Wire to
Chicago
when
the
war
ends the
national
Senate."
>
t
Wagner in a move to delay Con¬
Various items on the monetary
promises
to exceed 250
billions
(that is agreement appeared in recent is¬ gressional action on the Monetary
250 thousand millions, or a quar- sues of our paper: July 27, pages Fund.
'
debt of the United States
[Volume 160
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4308
687
International Security
Conference To Open At
Washington On Aug. 21 —Russian Proposal
Chicago, Mil., St. Paul & Pac. R. R. Co.
Aug. 14 that Russia and China as well as Great
Eritain have been fully apprised of American plans for a post-war
world security organization, Secretary of State Hull stated that the
British and the United States are in substantial accord on the main
In
disclosing
on
We
When Issued Securities
1st 4s,
'
1994
B Income
Specialize In All
External
A Income 41/2$, 2019
4%s, 2044.
Obligations
of the
5% Preferred Stock
■
lines of the proposed organization.
had sent
memorandum
a
on
had time to
ment with the others.
in
noted
was
"On the
our
force
the
517,
page
question of organizing
against
aggressor, but it de¬
impractical the organ¬
as
Sir Alexander
Cadogan, Undersecretary of the
British Foreign Office as British
ization
of
American delegate,
British
proposal for organizing
the post-war peace in a manner
which would place control firmly
in the hands of the great powers
capable of using force to suppress
aggression
has aroused
intense
interest
among
Washington of¬
ficials as being probably the key
to Soviet security planning.
From
these press advices we quote:
"The proposal is contained in a
lengthy analysis of failures of the
League of Nations and suggestions
for
a
new
world
organization
'Zvezda.'
.
*
"
'for
believing
that the
be
curity.'
said the gist of the
"Mr. Hull
American security plan was
given
President Roosevelt in his
statement of mid-June in which
he called for a collaborative asso¬
out by
ciation of sovereign States
the
he
eontinued and
strengthened in the future for the
maintenance
of peace
and se¬
of the Russian
of
force
by
backed
an
or
The
for an
President'^ plans
International Security Conference
referred
were
June 22, page
to
in
our
issue of
2609.
John C= Roberts With
questions by two-thirds
that there would be no
'false equality' extending to the
small powers a voice in decisions
.greater than their real influence
in world affairs, the article de¬
so
Peters, Writer Firm
(Special to The Financial
powers
erts
within
by
'In these treaties,' the
case,
time, and based
Commission has
displayed
inclination to
cent
adopt
pending
now
before
the Commission would do well to
fected liens before presentation to
more
the ICC will be well worth while
a
tion.
eralization of the
;
ICC
Baltimore & Ohio
capitaliza¬
/
/
.
the
While
material lib¬
a
new
Conv.
has
and
finally ap¬
of reorganization
for Missouri Pacific, consumma¬
tion is still a long way off.
By
the mere mechanics of reorganiza¬
increased to
tion
debt is to be mod¬
erately larger than contemplated
the
original Commission plan
contingentinterestdebtis to be
$159,175,000 from the
$120,661,000. In the earlier stages
of the proceedings this latter was
considered somewhat
As
side.
on
the heavy
offset, the amount of
new preferred stock
is to be re¬
duced and the total capitalization
is to remain very closely in line
an
that
with
of
the
Commission's
hardly likely that the
Commission
was
influenced in its
decision / to / substitute
income
bonds for preferred stock by the
consideration of the tax benefits
the
reorganized
were
would
the
case
company.
the
If
argument
just as strongly to
railroad reorganiza¬
tion. In the other reorganizations
the Commission has not provided
every
apply
other
similar
capital readjustments. It
seems, rather, that the Commis¬
sion was strongly influenced by
the substantial
measure
of accord
various
bond
holders'
groups, and felt that action cal¬
culated to minimize lengthy liti¬
among
to
other
St., Chicago 4, 111,
large number of the various af¬
no re¬
face of high war earnings. In the
Missouri
Pacific
case,
however,
in
LaSalle
So.
proved
reorganization
a
4y28, 1960
plan
Section
under
77. it
Pollak Manufacturing
would
overly optimistic to expect
proceedings to be brought to a
close before early
1946 at best.
appear
the
The
Commission
ther
hold
must
fur¬
148 State
and bring out its
final modified plan before it may
even
hearings
be
N. Y. Telephone HAnover 2-7914
presented to the Federal
Court for hearings and
District
approval (or disapproval). Then,
even if everything' runs smoothly,
there will be the voting by se¬
curity holders, the certification of
the results of the balloting to the
St., Boston 9, Mass.
:
/ Teletype BS 259
Tel. CAP. 0425
rail
men
^
detracting from the
as
speculative appeal of most of the
basis of the
receive. As
system bonds, on the
treatment they are to
a
matter of fact time may work
and final confirmation by
towards improving the potentiali¬
nothing of draw¬
ties of the old bonds, as it has in
ing of indentures, having the new
securities approved by the ICC, the past in most reorganizations,
court,
the court, to say
will
etc.
To
time
consumed
this
bond
where
added
be
in
the
appeals—even
holders
are
unani¬
plan it may
for granted
that the debtor itself will appeal
mously in favor of
virtually
a
taken
be
elimination of the old
Compared
with
equity proceedings, once a plan
has been approved, Section 77 is
against
allowing
long
the
notably slow process.
of
accumulation
substantial
In
cash.
the
this is true regardless of
run
whether
cash
the
distributed
is
directly to the old bond holders or
held
intact
be
passed over to
company
and used by it
to
holders.
stock
a
in
further
the
to
new
improve the properties,
tire
debt.
new
or
w
re¬
./ ■'■
'■
While the date of
summation
of
a
possible con¬
reorganization
plan is still a long way away, the
time element is not considered by
Loeliger With Ainhold
And S, Bleichroeder
In Conn.
AND DEALERS IN THE "WHEN ISSUED"
SECURITIES
&
upon
of
request.
Co.,
announce
WE
ARE
NOW
TRADING
OF
THE
AS BROKERS
NEW
that
has become
S.
Bleichroeder,
Fred
V.
Loeliger
associated with their
firm, specializing in foreign dollar
SEABOARD
and currency
securities.
RAILWAY COMPANY.
Seaboard Railway Co. 1st
4s/94
Kalamazoo
Seaboard Railway Co. Conv. Income
4%sf2014
Seaboard Railway Co. 5% Non-cum.
Pfd.
Allegan and
Grand
Seaboard Railway Co. V.T.C. Com.
"MOP"
and
Inc., 30 Broad St., New York City,
Exchange, have prepared memo¬
randa on Acme Wire Co.; Veeder-
a
Arnhold
,1<>V
Companies
Scranton
A stock
exchange
name
is given and required by
Rapids R. R.
STOCK
us on
all transactions.
General 4s
-
1975
BOUGHT—SOLD—QUOTED
SPECULATIVE POTENTIALITIES
Circular Upon Request
Mclaughlin, baird & reuss
Members New York Stock
ONE
TEL.
Exchange
WALL STREET
NEW YORK S
HANOVER
2-1355
i
TELETYPE NY 1-1310
~
■nr
209
Church Street, New Haven, Conn.,
members of the New York Stock
W.
Chas.
of political,
great power in the maintenance
231
spent in consultation
and arriving at a plan acceptable
to representatives of holders of a
if it is to result in
interest
other
and
Exchange
Time
tion.
policy with respect to re¬
organized capitalizations in the
fixed
Stock
Broadway, New York 5, N. Y,
120
give this point serious considera¬
Situations Interesting
in extinguish¬
on
MEMBERS
York
leading Security and Commodity Exchs.
Russian
and will depend
Ernst&Co.
on
New
Parties
geographical
and strategic conditions, but at Root, Inc.; Scovill Mfg. Co.; Ar¬
& Hegeman
the same time their mutual aid to row-Hart
Electric
one
another in any action for Co.; Landers, Frary & Clark, and
safeguarding peace must be as¬ United Illuminating Co., Connec¬
sumed in one degree or another.' ticut situations which appear at¬
Copies
"Other sections of the article tractive at current levels.
make
clear
that this means a of these memoranda may be had
from Chas. W. Scranton & Co.
regional responsibility for each
number
one
long term earnings record of<f>the constituent properties, it had proceedings
ture.
Otis & Co.
ing this or that center of aggres¬
sion. This role, of course, will not
be the same for each power in
each
with
At
the
for six years.
proposal states, 'there must be de¬
fined as precisely as possible the
role of each power
surprise to most rail men who have followed
The surprise was a pleasant
to most of the road's bond holders.
one
for the Reed Partnership gation was
justified even though
In the past he was it weakened to some extent the
in charge of the municipal depart¬
original conservative capital struc¬
ment
of the Denver office
of
separate
of unanimity.
"
associated
re¬
a
reorganization procedure closely.
manager
treaties
among them covering the use of
force, which would be decided
upon by the great states on a basis
mented
become
U.
supple¬
be
has
Peters, Writer & Christensen, Inc.,
S.
National Bank Building.
Mr.
Roberts has been assistant
great
the peace agency
would
framework
Chronicle)
DENVER, COLO.—John C. Rob¬
clares.
the
approval by the Interstate Commerce Commission of
months ago, came as a
that
portant
binding
1-310
organization plan for the Missouri Pacific, following very closely the
"Compromise Plan" formulated many
to
/assembly would decide
routine
matters by majority vote and im¬
ties
Bell Teletype—NY
terms set forth in the so-called
It appears
police force.'/
solely out of great powers
and
giving
the
world's small
nations a position only in the gen¬
eral assembly
of nations.
The
"The
The
against a
original plan.
international
but declared
super-State
peace
agency
vote,
ALBERTA
New York 6
J
liberal
reason,'
sound
will
survival,
magazine,
be
organ'
forth¬
present effective collaboration of
the United Nations, which began
in the midst of a terrible war for
accomplished,
implies, by creating the
'directive
Atlantic Charter,
the
is
'There
declared,
bility and power.'
the article
Re¬
coming security talks.
present war their greatness, sta¬
would
of
versary
and tied that fact with the
proposal is that the 'genuinely
guiding and decisive role' in the
organization 'must be assumed by
the
great powers, which have
demonstrated in fact during the
"This
Exchange
-
generally been conceded that the
original reorganization plan set up
"At his news conference, his:
by the ICC was unusually liberal
first in two weeks since he has in point
of amount of incdme
been
away
for a rest, he also bonds allowed.
noted that today is the third anni¬
In '5 other < reorganizations
the
.
"The main point
satisfac-:
Government.
porting this, the Associated Press
on Aug. 14 said:
recently published in a
writers'
considerable
of
to 'this
tion
delegations
of experts whose
he
described
as
a
groups
assignment
matter
the,
praised
Russian
and
able
as
force."
Hull
Secretary
Russian
was
1
Stock
Railroad Securities
inter¬
out-and-out
an
national police
representative, and Ambassador
Andra
Gromyko
as
Russian
spokesman.
According to Washington Asso¬
ciated Press advices, Aug. 14, a
Leningrad
Broadway
York
Telephone—DIgby 4-4933
any
scribes
.which
61
peace,
New
proposal calls for an
international
air
force
which
would be able to strike swiftly
as
Stettinius
Edward R.
State
of
maintenance
for
Members
the Russian
Georgetown estate, and will open
on
Aug. 21 with Undersecretary
of
/,
Province of
/
PFLUGFELDER, BAMPTON & RUST
except on unanimous agree¬
act
Aug. 3
post-war
security conferences will be held
at
Dumbarton
Oaks, a famous
As
but no one of them would
peace
study it thoroughly
enough for comment.
issue,
Stock
their*?*
security ideas but he had not
own
Common
Russians within the last two days
indicated that the
Hull
Mr.
1. h. rothchild &
co.
specialists in rails
52 Wall Street
HAnover
2-9072
n.
y. c.
5
Tele. NY 1-1293
Adams & Peck
63 Wall
Street, New York 5
BOwling Green 9-8120
Boston
Philadelphia
Tele. NY 1-724
Hartford
THE COMMERCIAL &
688
Thursday, August 17, 1944
FINANCIAL CHRONICLE
OUR
REPORTER'S
in
REPORT
Real Estate Securities
REAL ESTATE
Latest
Since 1929
★
*
Seligman, Lubetkin & Co.
SHASKAN & CO.
Members New York
-
Sfoclr Exchange
Exchange
Members New York Security Dealers Association
Dlgby 4-4950
JPL.,N.Y.
40 EXCHANGE
41 Broad Street, New
HAnover 2-2100
York 4
Real Estate Securities
We Are Interested In Buying
turned in by holders
AND
It is
such
TUDOR CITY UNITS
mighty broad statement to rate a bond Triple A.
Surely
must be conservative indeed.
Just what is a conserv¬
a
bond
a
H. TIPTON
on
Ransom Edwards Joins
Riler & Co. Dept.
secur¬
ities and raild
bonds,
de¬
the
and
of
-
used
but
also
years,
the country by brokers and
over
dealers with whom he trades./
Riter & Co. maintains
a
direct
private wire to their branch of¬
fice in Chicago.
Mr.
Edward's
new
telephone
number
will
HAnover 2-8000;
be
the teletype is NY 1-1092.
Mallory Interesting
investors foreign bonds to
the to¬
approximately $7,000,000,000.
On the loans made by our
Government only token payments
of
tal
made and the default on the
were
&
quest.
Co.
upon
re¬
r
have prepared an inter¬
esting analysis of the "Outlook for
Railroad Common Stocks." Copies
change,
this
study
request.
interesting
available upon
are
stable medium of
Ill
Broadway, Newe York City, have
prepared a memoranda on Great
H.
American
Christy
diana
Clay
levels.
noon
Inc.,
Laclede
Products
Limestone
teresting
Co.,
Industries,
believes appear
rent
&
Roller
and
In¬
which the firm
attractive at
Copies of
circulars
request from
cur¬
these in¬
may
be
had
F. H. Roller
& Co.
of redemptions is maintained, the
head of the national exchequer
probably could leave the business
of war to the Generals and the
He, evidently, has his work cut
him
the
perhaps living costs
on
front.
home
for
But
be¬
ginning to make themselves felt
now to the point where more than
a
little dipping into reserves is
necessary on occasion. The August
1 to 12 record may be only a
temporary situation, but then it is
worth looking into just the same.
'A..,1
'
'
»
„
are
/.
C.
,
Kansas City Terminals
What
with
the
new
arbitrament
ferences
and
in
international
dif¬
juristical character
a
international
an
program
that will implement the commit¬
ment of the Atlantic Charter that
appropriate
In
essential
to
access
materials.
a
word, if
we
want friends in the post-war era
as
guaranty against another world
conflict
must be
we
vol¬
the
though
of international
the
since,
peace
sought the
groups
equivalent
being
marked,
1.73 points.
the
to
The winning syndi¬
indicating
issue,
offer the securities
of
of
cost
a
2.2184%, and proceeded to
re-
the basis
on
97^ to yield the investor
return
of
a
2.12%.
the
On the basis of
bid
second
by the Authority, 94.12,
the interest cost would have been
The bonds
2.30947.
going well
reported
were
the reoffering.
on
Rail Equipments Active
The flow of
continues at
wake
of
railroad equip¬
to market
new
certificates
trust
ment
an
active pace in the
Board
Production
War
action allowing increased material
for
the construction of rolling
York
New
Central
called for bids
an
on
recently
issue of $15,-
000,000, and this week Chesapeake
& Ohio applied to the ICC for
authority to issue $2,500,000 while
Chicago & North Western seeks
to issue
in
two
cate paid the Authority 95.85 for
cooperation adopted for the pur¬
pose
refunding
and
$5,180,000.
Narragansett Electric Co.
The backlog of pending
public
a
friend.
Aside from the fundamental ob¬
trade wars
have
usually eventuated into shooting
utility
wars.
of
of
for investment bank¬
even
issue of
stock.
of
bulk
opened
$17,671,-
Authority
new
general
received
Admirals.
out
clearly
substantially augmented this week
Concerning the formulation of
plans, we should not reject
what is presently possible simply
because it may not be theoreti¬
when
past,
peace
The Ten Command¬
cally perfect.
do not furnish
ments
blueprint
a
for the entire social and economic
of
needs
the
are
Some will say that
international
the
was
Electric
Narragansett
Co., subsidiary of the New Eng¬
land- Power
Association,
regis¬
tered with the Securities and Ex¬
change Commission for a new 1st
mortgage issue.
Century, but
20th
good starting points and
I do not favor their repeal.
they
flotations
company
This company proposes to sell
$31,500,000 of new first mort¬
gage
Series A 3s, due 1974,;
which means that buying de¬
cooperation to prevent aggression
in which the sovereignty of the
partments
participants is preserved will not
be effective; some will say that it
is futile to formulate plans to sta¬
here in the matter of pricing.
sible, withdraw from and isolate
lasting peace we can't
hope to have anything approach¬
ing satisfactory employment at
adequate wages in this nation
without an outlet for our surplus
ourselves from world affairs. That
production.
tragic mistake must not be re¬
peated.
We now know that the
course,
bilize a medium of international
exchange until you have worked
out a full and complete program
provided
is
would, as far as pos¬
we
and
round
the major
not flat and
industrial centers
are
within 24 hours
jective of
a
The home market, of
is
market.
our
most
important
Approximately 20% of
population is dependent upon
agriculture for a livelihood. If our
our
farmers
to have full
are
employ¬
bombing range of the North Pole.
ment and
We know that
production there must be foreign
our oceans are ave¬
of
approach and not protec¬
tive moats, that the steamship and
the airplane have wiped out dis¬
tances and that the radio, which
knows no international line, has
nues
given to new ideas the wings of
the morning.
In a word, as Saint
Paul would say, "We are all of
Situations of Interest
F.
a
of the world
bers of the New York Stock Ex¬
of
arid
international exchange were of no
that
Outlook For Rails
I have been paying 6% interest.
raw
world
Hirsch, Lilienthal & Co., 25
Broad St., New York City, mem¬
and
light, of that. unhappy experience
the American people made the
fatal mistake of assuming that we
could go it alone, that foreign
great moment to us and that we
could work out our own salvation
Rouse
90
all nations of the world shall have
to
analysis prepared by Steiner,
Rouse & Co., 25 Broad St., New
York City, members of the New
York Stock Exchange.
Copies of
this analysis may be had from
below
foreign bonds sold to private in¬
vestors was almost 100%.
In the
markets
an
sell
York.,./Bonds
(Continued from page 683)
P. R. Mallory & Co., Inc., offers
an interesting situation, according
y
Steiner,
battle
areas, to get on his plane and
hustle home. Certainly if this rate
of
Participation
World Organizations
In
Street
in New
cities all
in many
can
heart
Advocates U. S.
is widely known not only
York
Bonds
retire bonds.
to
in
been
16
are
the
_
European
of
Only
it behooves Secretary
of the Treasury Morgenthau, who
the
rather
was
York
bonds, but the spread between
their
tenders
was
unusually
Perhaps
touring
times
at
New
bonds.
summer
Ed¬
for
funds
surplus
in
have
firms
who
Wall
and
building
to
appear
widely price and market
banking groups may dif¬
bids for its
ing
Mr.
has
interest
office
not
the war news.
'•
new
the bankers being called upon to
fix the interest rate and conse¬
000
special explanation for
the
heavy
redemptions
other
than the hopeful
character of
land owned in fee and 15 story
thp Insurance Section of New
spending,
dull
f
wards,
Edwards
Bonds pay 5%
property.
additional
with
o
business
R.
of the
on
does
the redemp¬
of $49,000,000 of 4% bonds,
1960, now outstanding.
The
bonds will be sold at par with
due
of
town
-
dealers.
Ransom
share in the ownership
a
tion
necessary,
are
as
such
with
together
would be applied to
indicated this week when the Port
been any
is
Proceeds,
treasury funds
fer
corporate issues, now reaching
market, being sold on a competi¬
tive bid basis, this is far from a
veloping
out
senting
for
there
for
vacation
needs
probable
cash
is¬
and
an
to
including Oct. 1, 1974.
ideas of
would
begin cashing war bonds with a
save
of such
serially
Port of New York Authority
which
on
banks
mature
to
the
Commis¬
Commerce
sion for approval
sue
How
minimum of delay. Aside from
v
r o a
the date
as
commercial
the
City Terminal Railway.
Interstate
set
Only partially
Ample interest coverage?
operating costs but unless the merchandise they offer is in
good demand, it is hard to realize^
SECURITIES CORP.
a
Members N. Y. Security Dealers Ass'n
profit.
The absolute deciding usually be purchased in the mid¬
factor of this conservativeness of dle ninety's.
III BROADWAY
AS
How very low the bond issue of
a real estate bond is the value of
NEW YORK 6, N. Y.
the property securing the bond $306,300 actually is can be real¬
WOrth 2-0510
ized by the assessed value of the
issue.
The smaller the mortgage
securing the bonds in relationship property which is $800,000. Prop¬
to the value of the property—the erty consists of land owned in fee
improved with a 15 story loft
better the bond.
building. Property occupies the
As an example, we have select¬
entire block front of Prince Street
ed
two real estate bond issues
(84.81/2) between Lafayette Street
that are so conservative that it
Ransom R. Edwards, formerly
(173') and Crosby Street (143').
may be possible to consider them
with Newborg & Co., as manager
Our second example is the First
Triple A.
of the trading department, is now
Mortgage bond issue on the Tyler
Prince & Lafayette Street de¬
associated with Riter & Co., 40
Building at 19 John Street cur¬
Wall Street, bentures due December, 1952, are rently outstanding in the amount
interesting.
There is no funded of $408,500 compared to $1,400,New
York
debt ahead of these debentures 000
City 5, mem¬
bonds originally issued and an
bers
of
the and the outstanding issue is only assessed value of $1,025,000.
An
New
York $306,300 compared with a $1,075,- important feature of these bonds
Stock
Ex- 000 bond issue originally issued is that they trade with stock rep¬
on
the property.
An important resenting an equal share of the
change,
in
charge of the feature of these debentures is ownership of the property. Bonds
trading in un¬ that they trade with stock repre¬ are secured by a First Mortgage
listed
tentatively
been
had
Changing conditions can materially affect real estate income.
Good management? Again only partially so. Good management may
ative real estate bond?
so.
C.
1
October
$47,000,000 of 30-year
bonds
of the
on
mortgage
The company has applied to
announced by the Treasury
that
a
quently the cost to the issuer.
only a few days ago it
And
Triple A Real Estate Bonds
-
for redemp¬
tion,
was
FRED F. FRENCH Stocks
than
less
By JOHN WEST
ALL
also that
$119,224,341 were
But they reveal
terval.
no
disbursed in that in¬
were
so,
Kansas
new
bonds
NY 1-953
Bell Teletype
Bond
War
on
sales in the period.
The figures show that a total of
$121,416,110 of Series E, F and G
ling
Incorporated
Members New York Curb
returns
cur¬
are
call for bids,
expected within the next week
first
sales, covering the first twelve
days of the current month are
not too encouraging considering
the fact that redemptions came
within striking distance of equal¬
SECURITIES
#
underwriters
rently awaiting
or
MARKETS IN
TRADING
offerings is not large
new
by any means.
The
SPECIALISTS
>
of
ume
-
body," and if Europe or any
one
other major part
sick
we
ache.
will
Since
we
or
to
to
our
be
the head¬
events
our
goal
shape those events,
participate in their shaping,
own
program
in
to
in
cannot escape the
impact of world
should
of the world is
share
an
best interest.
Such
a
will include participation
international
organization
with power to stop any aggressor,
in
a
world court for the
peaceful
parity prices for their
outlets for
20% of
our
approximately 40% of
30%
cotton,
our
of
our
tobacco.
wheat, apples, etc. If
automobile, airplane, machine
our
tool, electrical equipment and of¬
fice equipment) industries are to
have
satisfactory
employment
they should haVe a foreign outlet
for at least 10% of their produc¬
tion.
As
President
wisely said,
unless
we
abroad
we
are
McKinley
so
can't sell abroad
willing to buy from
that will
for
world trade; and
some will say the nations of the
world have always fought each
other and will always continue to
do so. Our Chinese Allies furnish
post-war
olans
we
trade and
a
ternational
particular
stable medium' of in¬
exchange
than
the
plan of international
the market will take
from the sale, with
cash, would be used to
Receipts
company
redeem
$31,732,000
of
out¬
the
standing Series A 3%s due to ma¬
ture
in
1966.
"
;
(Special to The Financial Chronicle)
journey of
we
cause
out
a
plans
perfect
refuse
we
to
take any step toward the elimina¬
tion of the fundamental causes of
international
conflict
and
dis¬
might as well stoo
talking about a post-war tax bill
that will give substantial relief
agreements
from
war
we
taxes because the mili¬
money we
importance to the
adopt for international
ing what
can't at the start work
answer
attach
more
houses;
Hirsch, Lilienthal
Adds Edward Shensa
correct
simistic views when'they say
forced to maintain
as
means
banking
"A
1,000 miles is com¬
menced with one step."
If, be¬
the
be the prin¬
by which those desir¬
ing our products ean acquire dol¬
lars for payment.
Personally, I
cipal
those pes¬
to
of
will be busy for a while figur¬
tary
establishment
nation
then
will
we
as
consume
can
an
all
will
be
-vrr.
Shensa
with
Union
Shensa
Aug. 9, 1944.
&
Co.,
Building.
Mr.
formerly
was
statistical
department
&
Co.,
and
Unterberg
the tax
Singer,
Deane
Soucy,
Swartswelter
ROBERTSON.
his
&
Ira
-
was
&
E.
with
Co.
and
of
In the past he had
investment
own
Boston.
C.
for
Scribner
.
'/?"
with
Haupt & Co.; was manager of the
Youngstown.
A. WILLIS
Lilienthal
Commerce
some.
Washington. D. C.,
associated
become
has
Hirsch,
• i'
OHIO—Edward
CLEVELAND,
isolated
possibly raise and
/
•
•
-
•
firm
in
Volume
THE COMMERCIAL
Number 4308
160
& FINANCIAL CHRONICLE
689
ADVERTISEMENT
EconomicStabilization
NOTE—From time to time, in this space,
there will appear an article which we hope
will be of interest to our fellow A mericans.,
In The Post-War Era
This is number forty-five of a series.
(Continued from first page)
^
y
This
of
course S been expanded for war purposes
again restored.
a thousand per cent.
assumes a free competitive society
People have
in which values
can
changed
adjust accord¬
habits
their
in
SCHENLEY DISTILLERS CORP.,
every¬
First Table!
ing to the knowledge of value re¬ thing from food to transportation.
lationships which is quickly un¬ New products have been created
derstood
But
do
the
by
kind
that
and the
public.
general
have
we
of
uses
obsolete.
a
of old products made
list
A
of
these
society?
Does management and justments would fill
regimentation prevent values from logue.
/
readjusting? A free society worked
most imperfectly and unjustly at
Economic
Some
I have just enjoyed a rare privi¬
lege. One of my associates has a
son, an officer in the Navy, and his
ship was in for a few days. We went
malad¬
large cata*
a
down for
Figures
index
too, because
from
98.5
in
1938
INVESTMENT
89
to
MEMBERS NEW YORK STOCK EXCHANGE AND
OTHER LEADING EXCHANGES
factory employment
peacetime business has caused a from 91 to 168; factory payrolls
maladjustment following all from 85.1 to 316.4; department
wars.
But this war is different. store sales from 99 to
168; whole¬
It is world wide.
It is larger and sale
commodity prices from 78.6
it has brought about a greater to 103.1 and the cost of
living
concentration of the population in from
100.8 to 123.6.
(These In¬
places necessary for war work but dices are compiled by the Federal
not practical for peace times.
It Reserve Bulletin. However, they
seems
quite safe to say that a do not have the same base year.
larger percentage of the working For example, the cost of living is
people are engaged in war work based on 1935-39 as 100, while the
than
the
was
vious war.
case
during
any pre¬
Alsd it is perhaps safe
to say that more women are work¬
1938
1926
prices
tions.
The
numbers
military
than
more
actually
forces
100%
in
Nevertheless, the
trend of the changes is quite evi¬
dent.)
in
perhaps
than in
are
larger
there
ress
has been in prog¬
been a great con¬
war
has
centration of
industry. More than
million businesses have ceased
to exist, while only about a half
one
million
businesses have been
new
then
The
adjustments
down
to
INVESTMENT SECURITIES
BROKERS OF BONDS; STOCKS, COMMODITIES
65.9
in
in
1933.
James H. Carmine,
tion, Says Survey Reveals 86% Of People Would Like
suffice
it
to
that
say
for the public,
scientific instrument, a television
receiver to operate properly must
mine,
be
according
are
useful
have
qnly junk value.
Many peace time industries have
SOME
Year—
INDICATORS
1917
1919—
i
follows
forms
the
us.
other
all
as
41,186,000,000
NET
PRIVATE
1916.
74.7
-•
1920-
Expenditures
124.3
1933-
NUMBER
OP
(Dates
16,185,308,000
58,019,773,000
PUBLIC
DEBT
158.0
161.4
1944 (Estimated)
;
$20,788
25,110
58,474
1933, Dec. 30
15,219
1941r June 3013,422
Dec.
31
(000,000 omitted)-
is
war
that
over.
the
The best
39,721
response
53,852
22,077
who have
18,400
38,646
soon as
that
a
those
from
comes
chance to
see
television receivers
it.
As
can
be
19,909
26,276
65,608
83,507
18,841
64,666
104,094
made
19,000
105,000
145,000
eagerly buy them in tremendous
quantities."
short pe¬
42% per annum to meet all extra
needs.
This
decade
of credit
pansion
following
beginning in 1921
a
few mild
net public
had
increased
during the decade that fol¬
Federal
than
debt
100 %.
was
re¬
duced by about 10 billion of dol¬
lars, while the city and state debts
increased rapidly and the net pub¬
was marked up more than
lic debt
much
as
the Federal debt
costs of the. First World War.
In
of all bubbles and
of
credit
Era"
to
Credit
from
the
over-expansion
the
"New
Expansion
Two
—
During
"South
Sea
the
public
consumer
vealed that 86%
like
would
to
will
survey
re¬
of the people
have
television
a
receiver in their homes, Mr. Car¬
mine
Few, if any,
post-war wants are more general.
"Because it is a highly technical
pointed
war
World
the
War
out.
prices
How
will
the
debts
as
deposits be managed so
another wild boom
that
to prevent
and
expanded
always has followed booms?
times
many
that
of
In
fiscal year 1945.
this
"era"
of
What is to follow
war
credit
expan¬
be
paid or reduced, and the bank
deposits reduced? Can these debts
and bank
national
speculation and rising
this
increased
consume
debt and the net public debt have
fact, the rise
additiop, the debts of private cor¬
porations expanded as never be¬ of these public debts has out¬
fore.
anything: recorded
in
Also, it should be pointed stripped
out that it was in this period that financial history, and we have no
instalment credit had its great records to ^ compare this qredit
expansion. Everything from au¬ expansion with in the pages of
tomobiles
to
house
furnishings history of this country or any
were sold on the instalment
plan, other country. As a result, bank
and when the credit wanted was deposits will probably reach 150
restrained there was a network billion dollars by the end of the
of loan companies licensed by the
states to make loans at rates of
Will
sion?
inevitable« collapse
the
covery
and
inflation
booms
Re¬
are
always interpreted as "New Eras,"
is
We
over.
ex¬
a portion .of the blame.
they in turn blame the public.
Can we escape a "New Era" and
its consequences?
But;
-
leave,
a
time
clear-eyed, clears
tion, sort of shuffled forward. Shyly,
naively, he handed me a snapshot'
of his little
daughter — a darling
baby girl; and there was a huski-1
in his
ness
voice when
"Mister, here is
post-war plan!"
I had
he said,
picture of my
I
'
a
.
.
grand afternoon on that'
ship. It was so clean—and the air
was
a
fresh. Tonic!
-
•
:
'
\
MARK MERIT
Of SCHENLEY DISTILLERS CORP.
FREE—Send
to
:
postcard of tetter
Distillers Corp., 350
a
Schenley
mitter
art".
considered.
in
Mexico
City
is
being
•
.
employment'
vision
above
and
Over
will
its
;post-war
opportunities, tele¬
great contribu¬
public welfare in the
make
tions to the
"In
popularizing television and
giving- it the initial impetus it
needs to get underway, the most
important thing is to let people
fields of education and entertain¬
see
ment, Mr. Carmine pointed out.
By combining sight with sound,
television is the ideal medium for
itself is many times more power¬
to
the
1
United
formed
better
States
in¬
and better educated than
than
ful
any
the
whole
seen
television.
stations
will
country and
whole
the
cover
a
tremendous audi¬
"Present television
broadcasting
about 25,-
000,000 persons, if receivers were
available," Mr. Carmine said. "If
all the stations for which permits
have been requested are construced, television coverage would ex¬
pand to 70,000,000 people—more
than half the population of the
country. The New York-Philadelr
phia relay link which Philco has
developed sets a pattern whereby
television audience.
,
"As you may
evision is
now
;
'
already know, tel¬
becoming interna¬
tional, and construction of
a
trans
United
States
What all of
haye
us
in
do, as quickly
possible, is to give demonstra¬
as
all
tions
If
we
selves.
over
do
the
United States.
this, such questions as
price,
will
The
production,1 and
almost
solve them¬
public response will
surprise all of us in its enthusi¬
asm
and spontaneity."
Sugar Situation Of Interest
With the Cuban commission ap¬
will exist.
is within the reach of
be
the industry need to
demand,
opens
words that can
Even today, only an
infinitesimal number of people in
markets
it
Television
said about it.
whole new vistas
which
courageous
pioneers are
now spending time and money to
explore and develop in anticipa¬
tion of the day when television
field,
themselves.
for
it
before. In the entertainment
ever
"Prosperity" and just the natural
the stations in different cities can
activity of an industrious people
until they burst. Then the blame be tied together to begin a na¬
is placed squarely upon the bank¬ tional hook-up and make the out¬
ers, the speculators or the gov¬ standing shows and news events
ernment.
All of which undoubt¬ of the country available to the
edly bear
to
us
skinned sailor, who hadn't said a
word during our general conversa¬
get into television will give a tre¬
mendous stimulus to
the video
ence
credit?
Era."
of
What Is Ahead?
this
World War One.
sold,
A. recent
for
was
service men, who can be Fifth Ave., N. Y. 1, N. Y. and yoii
will receive a booklet containing
given the latest television in¬
formation very quickly, at 20,000. reprints of earlier articles on vari¬
Their availability and desire to ous subjects in this series.
■
But
more
and
ex¬
the recovery
witnessed an
war
ligence. It is the next best thing
talking with a teacher face-toface. Properly used, television can
do much to make the people of
10,845
public
46,186
a
the
as
the transmittal of ideas and intel¬
40,477
*
soon
thinks
17,442
During the first small Federal debt cost of the
debt had in¬ First World War. But the payday
creased sharply and bank deposits came in
1929, as has been the case
as
evidence
And, then, just when it
-
concern
<
•'
and service
well of television is the universal
41,531
months' reaction.
twice
the
30,839
interrup¬ increase in total public and pri¬
tions worthy of the name of a few vate debt of more than twice the
the
as
$18,566
readjustment and a mild
depression was followed by about
(eight years of financial inflation
lowed
so
completely planned and
highly developed before it was
offered to the public as has tele¬
vision,"
Mr. - Carmine
said.
"Through long years of research
and
development the television
art has been so perfected that the
product itself and the service it
renders will be ready for the pub¬
lic in a highly-developed state as
$5,532
of
our
H. Carmine
James
125,000
After World War I
war
great
industry
13,200
(Estimated)
only
Deposits
modern
our
;
no
:
pert
prod¬
a
all
estimate the number of these
ably
the
radios and
automo¬
over
to handle installation
13,270
1943,
1944
with
Investments
we sat down with a
of these kids and talked
about what they planned to do
after the victory parades are over.
These are days, you know, when
post-war planning tops the list of
"musts." Well, we learned a lot
and we gained a new respect for the
soundness of these kids' thinking.
They're way beyond their years—*
frequency training, will be ready
as
soon
$15,257
41,684
riod
273.5
400.0
indicate trend)
29,829
1929
n
before
never
advantage
appliances in that a
large body of experienced per¬
sonnel, who have had the benefit
of Army and Navy radio and high
Aug.
on
"Here
continued.
household
York
City
great
biles,
.
26,274
—_
a
o n
i
in this work,"
trained
Carmine
again television will start off with
been
AND
Loans
1920
especially
so
Loans & Inv.
1914, June 30
i
s
seminar
skilled personnel
by those who are
by
serviced
Mr.
-
Club
vi
e
new
250,000,000,000
] 943
selected to
1
e
uct of
BANKS, LOANS, INVESTMENTS AND DEPOSITS
No. Banks
t
has
$1,023,557,000
26,594,268,000
3,994,152,000
151.3
Li
of
s
installed
and
Execu¬
Radio
"Prob
Gross National Debt
18,522,895,000
173.4
-
in
10th.
•
(In billions at the year ends)
1929_
o
ing for Philco
Corp., speak¬
ing before the
MALADJUSTMENTS
12,774,890,000
99,276,000,000
OUTSTANDING
inevitably
history in¬
past
$1,977,682,000
7,607,212,000
(Estimated)
first
comes
FINANCIAL
$1,124,325,000
5,152,257,000
4,177,924,000
;
1941
1944
OP
Total U. S. Receipts
.1930—_
t
Vice-
New
Some of these
some
\
James II. Car¬
for sale.
and
objective is won."
our
And then
about the future..
Approximately $25,000,000 has been invested in television re¬
development by the radio industry to get television ready
tives
The
to preserve our
sit at the 'first table*
we,
can
and America need feel
search and
maladjustments are followed by
government
has adjustments, inflationary or defla¬
many billions worth of war plants tionary,
and no. matter which
formed.
Industry
Prepared To Meet Post-War Demands
merchand i
But
Vice-President Of Philco Corpora¬
To Have Television In Their Homes—Radio
charge,
ment.
until
Television Prospects Bright
international trade
sim¬
ilar to the price adjustments. The
history of these times is too well
known to require further com¬
than
Nation,
Phone LD-159
•
are
group
President
very
Home Office Atlanta
•
/
manufactur¬
were
honored
asked to stay:
Good food these kids
mess.
more
Privote Wires
ing, mining, factory payrolls and
World War I.
While the
1920, and back to 95.3 in 1929
and
UNDERWRITERS AND DISTRIBUTORS OF
based upon
are
100.
as
ing at war jobs and peace time
jobs than ever before, and a large
When
similar
maladjustments
percentage of these women will have occurred in the
past, though
wish to continue to work. Then
never so extreme, a period of ad¬
there is the large number of men
justment
causing
a
depression
and women in the military forces
occurred.
For
example, taking
to be demobilized and returned to
1926 as 100, all commodity prices
their former peace time occupa¬
moved from 68.1 in 1914 to 154.4
the
.
239;
wholesale
were
we were
getting and plenty of it. That made v
me very happy and you'd be
happy
too, to see the practical workings
of a plan that says to our civilian
population, "We've got to practice
a
mild self-denial; we've got to
deny ourselves, quantitatively,*
some of the
things that we are1
accustomed to, so that our fighting
men, who are giving up so much
BANKERS
to
1943; the physical volume
of production (unadjusted) from
to
war
of
for
211.7 in
Have Now
reconversion
The
number
visit. We
a
t
On Maladjustments
times, but does a managed econ¬
From figures presented in the
omy work any more perfectly and Federal Reserve Bulletin income
justly?
payments have increased from an
Seme Maladjustments That We
NEW YORK
pointed to negotiate for higher
sugar
prices, Warner Sugar 1st
and refunding 7s offer attractive
possibilities, according to a special
bulletin
being' distributed
by
Amott, Baker' &
Co., Inc., 150
Broadway, New York City. Copies
of this bulletin: may be had from
the firm upon request.
Printing Ink Looks Good
Ink offers an
according to
memorandum issued by New-
General Printing
attractive
a
situation
burger
& Hano,
1419 Walnut
Street, Philadelphia, Pa., members
of the New York and Philadel¬
phia Stock Exchanges.
Copies of
this memorandum discussing the
outlook may be had from Newburger & Hano upon
request.
Thursday, August 17, 1944
CHRONICLE
THE COMMERCIAL & FINANCIAL
690
Boston Traders Ass'n
Acme Wire Co.
Arrow-Hart & Hegeman Elec. Co.
Veeder-Root, Inc.
Landers, Frary & Clark
Scorill Mfg. Co.
United Illuminating Co.
memoranda
Markets and
on
available
Michigan Markets
and governors
for next year,
to
New London
voted
be
ing scheduled
for Sept. 26:
Danbury
Members N. Y. Stock Exchange
Members New York Stock Exchange
DETROIT 26, MICII.
812 BUHL BUILDING
meet¬
annual
Waterbury
Wm. C. Roney & Co.
639 Penobscot Building
the
at
upon
New Haven
Detrola
U. S. Governments
officers
for
CHAS. W. scranton & CO.
International
selection
made the following
has
request
\'i\ :•
\' •'!/'•;v'ty!'■ •'* '\l
-'-Ar,.'
Members of Detroit Stock Exchange
Association
ton Securities Traders
these Connecticut companies
on
MASS. — The Nom¬
Committee of the Bos¬
BOSTON,
inating
Are Interested in Buying
We
Charles A. Parcells & Co.
Gets Slate For Office
President:
DETROIT 26, MICH.
Private Wires
Telephone
Randolph 5625
Teletype
To All Markets
Phone
}
_
Cherry 6700
DE 167
.
J.
Walter
Connolly,
Connolly
V.-President:
Sept. 1, 1944, the remainder of its VA % debentures due
The bonds, presently outstanding in the amount of
on
July
1,
A.N. Wins-
1950.
'
is currently
Co,
includ¬
interest to and
accrued
ing Aug. 21, 1944, on which date
the offer
expires.
Bonds not
■i
tendered
are
sinking
the
Nov. 1,
subject to call for
fund
at
103*4
equipment.
Colt's Patent Fire Arms Manu¬
facturing Co. has been instructed
by the Springfield Ordnance Dis¬
trict to step up its production of
.45
caliber automatic
pistols. The
armed forces are in a position to
utilize
maximum
production of
this weapon.
also
of
decision
Deep
of
Co.
&
an¬
Pratt,
River
Read
to
dis¬
reconversion
peacetime work will hold back
F
piano production in the entire
nation as this company is the
sole source of supply of piano
series
bonds due Sept. 1, 1966.
;
*
4
•
|
3*4 %
*
keys and action mechanisms in
Collections of Internal Revenue
in Connecticut for the fiscal
tended
June
the
year
refusal
of
Total
prices
made
that
indicate
collections
of
ceiling
$896,529,929, showed an increase
65% over the preceding year.
to
With
country.
costs
in¬
creased approximately 35%, the
1944, amounting
30,
its
to
continue
Sept. 1, 1944, the $7,000,000 first
refunding
the
OPA
of
to
lower
pianos
has
profitable operations im¬
Connecticut ranks 12th among the
versy
enue.
will close down.
.....
e
#
*
.
be settled the plant
can
#
Vv
two
terms:
year
The Navy Department in Wash¬
1944,
Bigelow-Sanford Carpet Co., Inc., ington recently announced that
showed net profit of $1.39 per there would be a cutback in sub¬
on
after
the common stock
provision for depreciation
a
taxes and
and
preferred dividend. This
marine
that
production due to the fact
submarines
fewer
had
been
lost than had been anticipated and
were
Members
of
the
Nominating
Committee are: James B. Maguire,
E. H. Rollins & Sons, Inc., chair¬
man; William S. Prescott, Carver
& Co., Inc.; William Burke, Jr.,
May
&
Gannon;
William
S.
Duncklee, Brown
man; and
Bros. & Harri-
Ralph F. Carr, Ralph F.
Carr & Co.
Boat
Co.
Groton
of
a
refund
on
1941 taxes was more
than sufficient to offset taxes for
Net sales of $19,753,489 for
the first half of the year showed
1943.
an
increase
may
not
yet
of $861,814 over the
of 1943.
War
amounted
approxi¬
mately 71% of the total sales.
The company is the largest sin¬
gle producer of blankets for the
contracts
cations
are that the company will
produce submarines through 1946.
The current rate is two "stobs"
*
armed forces.
Their most recent
300,000 O. D. wool
army
blankets.
Completion of
this order will bring the total pro¬
duction Of blankets over 5,000,000.
Sleeping bags are turned out in
large quantities, the latest allot¬
wool
of
for
this
purpose
being more than sufficient to pro¬
duce 300,000 such bags.
Graham H. Anthony, President
Peck,
Stow
gross profit
fiscal
year
After
sion
the
to
Federal
Co.
of
Products
Electrical
Newark,
N.
J.
Output of this division includes
heavy industrial switches, circuit
breakers, panel boards and service
showed
of $918,939.88 for the
June 30, 1944.
ended
of
$66,109.48
and provision for taxes of $647,891.29, net income totaled $204,939.11 compared with $174,126 in
the preceding fiscal year.
The company added $139,939 to
surplus during the year and set
up a $25,000 reserve for contin¬
gencies. The volume of sales was
the greatest in the history of the
company and surpassed the pre¬
vious year's record by more than
$1,500,000.
>N'
v
-
#
#
During the first six months of
this year United Aircraft Corp.'s
total
sales
were
$419,925,815—
26% ahead of the corresponding
period
of
however,
crease
1943.
only
Outing Huge Success
DETROIT,
bers
of
MICH.—The
the
mem¬
Association of Detroit and Michi¬
held their 1944
gan
great
summer
out¬
success.
George C. Dillman of Harriman
Ripley & Co.; Incorporated, won
the Director's Trophy in the Golf
Tournament.
the
Net
income,
showed an in¬
of approximately 4%, or
of
large
unusually
out-of-town
guests
Edward E.' Parsons, Jr., Wm,
J. Mericka & Co.; Corwin L. Lis-
were:
ton, Prescott and Company; Rich¬
ard
Gottron, Gillis, Russell and
Company; Morton Cayne, Cayne,
Ralston
&
New Britain Mach.
Aetna Life
Members New York
and
Exchanges
Boston Stock
\
.V
Associate Members New York Curb
Am. Hardware
Russeli Mfg. Co.
Landers
in
conference
move
in
was
that
than
anyone
stock
the
SEC
welcomed
who knew better
else that it was
up
carried
that
rather
than
any
*
the
on
Fahnestock Co. Opens
Branch in Hartford
list of
company
Conn. Lt & Pr.
Torrington Co.
Exchange
in
Brokers
Detroit
both
and
New York have been angling for
some
time for this anticipated
business
which
would
constitute
the late Edsel
Ford's shares.
It has been learned, however,
a sizable block of the bank's
that
stock
disposed of at
was
vate sale, which
pri¬
a
makes further
sale unnecessary at this time.
special
Radiator
of
meeting
McCord
has
stockholders
been
to include the word "McCord."
Stockholders
Statement
to
stockholders
had been given an op¬
tion on unissued company stock
and can take up 10,000 shares a
year at $3.
The option runs for
ten years and the stock is selling
at $3.50. Tivoli
stockholders
were
told
that Colby got the option to give
him a greater interest in the com¬
pany's welfare and to
new
1.
insure his
s
*
o-,:;.;".;
City
Controller, will receive bids Aug.
28 for the purchase of $2,020,000
finance
war
as
orders
finally settled at a re¬
of the annual meeting
which was ordered by the court.
Two members of the minority
group — from Cleveland — were
was
sumption
change
a
the
in
of the present no par, class
stock
to
common
stock
and
B
change the number of shares from
303,400 to 306,523. ;
2.
Authorize
shares of
carrying
tive
an
new,
no
issue
of
and
37,947
preferred
par,
rate of $2.50
a
redeemable
cumula¬
at
$50
a
share.
Under
.
Charles G. Oakman, Detroit
to
Authorize
name
remaining with the firn1!.
*
asked to—
are
said
that Colby
Co.
for
September 12 to vote
on
a
recapitalization plan and
adoption of the abbreviated name
the
recapitalization
plan each class A holder will
ceive
1.4
shares
ferred, plus
mon
A
share
which
share
new
share
one
and
all
of
rights
unpaid
re¬
pre¬
com¬
to
ac¬
dividends
aggregated
$19.50
per
Aug. 1.
on
Ins. Stock
Employers'
offers
of
for surrender of each class
cumulated
Interesting
Group
Associates
attractive situation
an
cording to
a
detailed
ac¬
memoran¬
dum prepared by Mackubin,
& Company, 22 Light
Legg
Street, Bal¬
timore, Md., members of the New
York Stock Exchange. Copies of
this memorandum, and the latest
issue of the Mackubin, Legg In¬
surance
Stock Index, may be had
from the firm upon request to the
Insurance Stocks Department.
The firm
manager.
has four branches in Connec¬
ticut, the others being located in
New
Haven,
Torrington,
and
ional
Stamping Co;
Howell Electric Motors
Waterbury.
Mich. Off. & Theatre, L T. G
Report furnished on request
Ind. Brownhoist, Issues
Primary Markets in
Hartford and
financing by
Manufacturers National Bank
Scoviil Mfg. Co.
-
in¬
Colby, President of Tivoli Brew¬
stockholders battle in the
Detroit and Cleveland Navigation
branch office at 75 Pearl Street,
as
from
that there will be
sources
immediate public
no
the
ery.
The
Fahnestock & Co., members of
New York Stock Exchange,
now
formed
Financial
learned
has
called
held by the corporation.
the
a
and
Commercial
The
Chronicle
.
supplement "tax lim¬
ited" salaries via the long-term
capital gains route was Howard
needed
of
Inc.
A
ately available, will be used
the opening
Dowd, President of Dowd-Fe-
der
*
Company,
tion.
announce
S.
was
"hysteria"
First of
Cleveland Corporation, and Ernest
the sale of part of
that
investigating
brokers
by
such
no
prospect.
Announcement
was
of the
of the board
man
was
rumor
only laid in its grave when Joseph
Frazer stated flatly at his first
press
Frank C. Gee, chair¬
from of Detroit.
rumor
the
and
and C. J. Detroit bonds.
Odenweller, regional director of
the Securities and Exchange Com¬
Murray Corporation of Amer¬
mission, all from Cleveland. Oliv¬
ica recently completed negotia¬
er Goshia, Collin, Norton &
Co.,
tions with the National Bank of
Toledo, was also present.
Detroit for a $25,000,000 V-T
Ray P. Bernardi, Cray, McFawn
revolving credit.
& Co., is president of the Associa¬
The credit, which is immedi¬
Hurlbert
Tifft Brothers
such
every
on
*
board of directors.
the
to
were
officials to
Traders
Securities
denial would have to
#
Hartford, Conn., with Gordon C.
Markets for Dealers in:
a
elected
They
planned manipulation.
Securities Traders
number
Wilcox
&
depreciation
of Colt's Patent Fire Arms Manu¬
facturing Co., recently announced
the sale of their electrical divi¬
*
*
here
the
Among
month.
a
to
contract is for
ment
determined, but present indi¬
months
six
first
be
follow
public
with 490 a share for the that the need for other types of ing last week. A large attendance
of
members
and
out
of
town
corresponding period a year ago ships was greater. To what ex¬
when no provision was made for tent this will affect the Electric guests pronounced the affair a
Federal taxes due to the fact that
co¬
denial, they
deterred by the realization
that such
Altmeyer, Hayden, Stone
Smith, Blyth &
Co., Inc.; and Sumner Wolley,
Coffin & Burr, Inc.
compares
■
announcement
official
an
Newest
For the first six months of
!share
sidered
& Co.; Herbert C.
#
Jjs
the<$
coincidence,
by
deal
Engdahl, Goldman, Sachs & Co.
incided with the resignation from
Recording Secretary: James F. G. M. of the Fisher Brothers and
McCormick, Jr., Mixter & Co.
every school teacher, housewife
Corresponding Secretary: James and factory worker rushed to buy
R. Duffy, Paine, Webber, Jackson Graham when rumors swept the
& Curtis.
city that the Fishers were in¬
Governor for one year term: H. terested.
R. Beacham, Josephthal & Co.
While the Fishers seriously con¬
possible, and until this contro¬
United States as a source of rev¬
■
share caused more consternation than enthusiasm.
Purely
Graham
John W.
nounced that it will redeem on
and
reported $1,000,000 plus.
brokerage circles here the runup in the stock from below 3
a
In
Connolly Treasurer:
Governors for
on
The
has
company
for
to $7 a
Arthur E.
1944.
The
J.
&
offer¬
ing to purchase its outstanding
7% first and refunding mort¬
gage bonds due on May 1, 1951,
at a price of 125% of par and
Power
Highlight of the financial news in Detroit: in the last few weeks
been the purchase of virtual control of Graham-Paige Motors
by Joseph Frazer-, backed by Floyd Odium and a New York syndicate
has
West &
Winslow.
Walter
Light
Connecticut
low, Jr.,
Perrin,
•
$4,500,000, are redeemable at 102 % and accrued interest to the call
date.
Upon completion of the call, the company's sole capitaliza¬
tion will consist of 1,046,838 shares of common stock.
The
Michigan Brevities
&
Co.
redemp¬
Scovlll Manufacturing Co. of Waterbury has called for
tion
J.
Walter
Connecticut Brevities
$2.93
a
share
against
$2.81
L A.
a
Darling Co.
share.
Connecticut Securities
Coburn & Middlebrook
49
Pearl
St., Hartford
Hartford Phone
7-3261
,
1,
The
Hartford
HAnover 2-5537
earned
New York:
BOwling Green 9-2211
Boston Phone—Enterprise 1850
Bell
Teletype HF 464
*
#
Collins Co.
of
7-3191
Conn.
New York Phone
*
Bell System Teletype: HF .365
$191,791
or
during the fiscal
31, 1944,
680
or
as
Collinsville
$12.79
year
a
share
ended May
compared with $186,-
$12.45
ceding fiscal
a
share for the pre¬
year.
Mercier, McDowell
& Dolphyn
Members Detroit Stock Exchange
Buhl Bldg.
Mlman, Moreland &Co
Member
1051
26
Stock
Exchange
Building
DETROIT 26; MICH.
Cadillac 5752
DETROIT
Detroit
Penobscot
Teletype DE
Battle
Creek
75
Lansing
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4308
160
691
Senate Passes Reconversion And
Unemployment
Bill Sponsored By Senator George
L';
Steel Products Engineering
'
:
~
Marathon
Murray-Kilgore Measure Defeated By Vote Of 49-25
The Seriate by a vote
of 55 to 19, passed
Aug. 11
on
passed by the
bill
Senate
Aug. 11 sets up an Office of
War Mobilization and Reconver¬
on
he
that
upon
had
"no
desire
controversy
a
Missouri Kansas
Under it the
Government would reimburse the
States.
the
to
soldiers
tween
sailors
Federal fund
guarantee the solvency of State
unemployment systems.
The rejection of the MurrayKilgore bill, setting up a much
broader Office of War Mobiliza¬
urging defeat of the CIO-supported measure under which dis¬
charged war workers would re¬
ceive up to $35 a week in unem¬
ployment compensation.
workers and set up a
to
$
■I?
tion and Adjustment, came on an
which the Senate
provisions
of
the
indirect vote by
substituted
bill
George
for
rival measure which
Federal
In
an
of the
sections
included the
jobless pay plan.
eleventh-hour effort
overcome
to
opposition, the Murray-
Kilgore bill proponents reduced
from $35 to $25 a week the pro¬
payable
posed maximum benefits
under its terms.
C;
the
with
But
votes
their
in
for
compromise.
*-"•••»• ^
bill now goes to the
with indications
it will
be referred to the
a
forced
that
Ways
Means
and
Committee for
consideration early next week.
provides for a demobilization
It
carries
recommendations of the Ba-
setup which sponsors, say
out,
ruch-Hancock
the
report
at
drafted
suggestion of President Roose¬
The director of the new
velt.
would work with an advi¬
board of 12 members, three
each from industry, labor, agri¬
culture and the public.
%
Deal
Senator
Pepper
Fla.)
replying, declared
not the profits of the
corporations, "but the purchasing
power of a nation at work that is
the recipe for prosperity."
is
it
He declared that unemployment
and other
provisions of the Mur¬
ray-Kilgore bill would prevent a
costly depression by stimulating
production and purchasing power.
program.
Absent from the bill were
recommit
to
mittee
on
proposals under which work¬
be given six months'
vocational education at Govern¬
ers
would
with payments for
subsistence while going to school.
Also
missing were labor-proment expense
posed regional and industry ad¬
visory councils which Republicans
said would mean "another NRA."
12 Senator Carl A.
(Democrat) New Mexico,
charged that a Republican mi¬
nority which "has controlled the
Senate for the last two years" re¬
fused to permit Senator George
to work out a broader and more
On
both
the
a
Revenue Bonds due
September 1, 1965 have dropped from
have been reported
of
by local dealers. There
bills
ground
to
not assumed the
expense
the steel from the
river. The Bridge Commission also
carried "use and occupancy" in¬
effective
after, seven
days, providing a maximum pay¬
ment of $75,000. Present estimates
indicate
that the bridge is not
surance,
likely to be ready for traffic again
until April 1, 1945.
Meantime,
order
in
to
keep
let
area,
to
contract
a
provide
ferry
service
debt
both
ended
ignored "post-war security for the
to
June
the
in
'
the
reorganization plan for Sea¬
Air Line, the issues offer
board
possibilities
as
es¬
an
sentially
arbitrage situation, ac¬
cording to a memorandum issued
by
Vilas
&
Hickey, 49
Wall
Street, New York City, members
were
ers
-
six months
■
bill.
Hatch,
Senator
a
Murray-Kil¬
supporter, asserted that "for
the Republican
minority, aided by certain ele¬
ments among the Democrats, has
the United State
controlled
Sen-
st0 ^
Exchange
Weekly Firm Changes
Reinholdt
the
by
after
stock
com¬
pre¬
Gardner,
in
complete understanding and com¬
prehension
of
the
conditions
which require a broader and more
effective consideration" than his
permit.
"Had Senator George been per¬
bill
would
mitted to by
the Republicans who
supported his bill," Senator Hatch
said, "he would have worked out
a
compromise. But supported as
he was by the entire Republican
side, he
s
,
Told
was
J.
Alfred
partnershio
Duff
from
retired
Arrowsmith,
in
& Welch, New
Exchange
York,
on
Post
Aug. 4.
of
t
Senator
Hatch's
com¬
&
Ray
&
Denyven,
Co.;
interesting investment op¬
portunities are available in un¬
many
sues
are
A total of 43 is¬
included
in
Stock
Exchange
ST. LOUIS
and
Exchanges
Locust
503
Street
1, MISSOURI
Teletype SL 84
Tel. Central 0838
We Maintain Markets In:
Bert
Eckhardt
-
The
Mengel Company Bonds
La s a lie
Peter¬
Co.; Emmet Byrne, Rob¬
Gordon
Scherck,
Co.;
&
White
•
Hotel, Beaumont, T exas
Richard
Hilton Davis Chemical Co. Pfd.
Huckins
Walsh,
page
on
Valley
Building,
Trust
tributing
696)
Metropolitan St. Louis
'■.1*1
are
dis¬
a
very
of
attractive and complete
on
the
who
national
the
advertising
done
tabula-
Com¬
that this piece of
believes
will
act
as
decided
a
to those dealers
distribute the only
stimulant
wish
really
to
speculative security
con¬
tained in the fire and casualty list.
Copies
Street
Louis
Central
1, Mo.
8250
St.
208
L. 499 *
of
this
memorandum
Customers Brokers
may
Maryland
Casualty
Company, the cover of which is a
composite half-tone reproduction
report
SECURITIES'
Locust
718
Saint
L. D.
—j
COMPANY
interesting
an
copies of which
is
Hotel,
Oklahoma City, Okla.
Scherck,
Company, Mississippi
recently
listed securities.
on
circular
and
a
Mid-Continent
Airlines will be sent by
White &
Company for the asking.
Nominate Officers
Richard
G.
Horn
Peter
of
McDermott & Co. has been
inated
the
for
P.
nom¬
presidency of the
Association of Customers Brokers.
C. Blanke
Donald
was
nominated
for vice-president;
Archie F. Har¬
ris, secretary; John A. Hevey,
treasurer;
Robert
J.
Davidson,
Phillips,
Spencer
John
and
terms
on
Duff,
Richard
for
Ross,
four-year
the executive committee;
John S. McLain and Frank Saline
for one-year terms on
the execu¬
tive committee.
The
annual- elec¬
Association's
tion will be held
Sept. 13.
on
Frazier Jelke To Admit
George
Jordan
will
become
a
partner in Frazier Jelke & Co., 40
Wall
Street,
New
York
City,
Exchange,
on
Mid
-
Continent
Sept. 1.
Stix & Co.
Airlines
News Review
The
current
issue
of
Circular
on
request
509
OUVL
including
values
a
of
and
bank
stocks,
table of comparative
certain
bank
may
,be
*
had,
upon,
WHITE & COMPANY
request »from
ST.LOUISLMO.
ST. LOUIS
*
saint louis 2
1, MO.
Members St.
Coast to Coast Wire System
Exchange
319 North Fourth Street
Mississippi Valley Trust Bldg.
stocks.
Stock
street
Geyer & Hecht's "News Review"
insurance
Members
St. Louis
Huff.
contains interesting data on vari¬
ous
0. H. WIBBING & CO.
INVESTMENT SECURITIES
Copies of this interesting release
unable to do so."
Petersen,
sales
a
counter" market and the fact that
The New York Stock
Fusz,
Schmelzle
literature
has announced the following firm
leaflet
Ofjicet
Among those al¬
are the following:
by this company. White &
Louis Dealers
and
York
Other Principal
Ins. Stocks Attractive
Earnings
distributed
to
their clients, call attention to the
importance • of
the
"over-the-
members of the New York Stock
Senator George "has a
He said
Firmin
Fusz,
(Continued
ferred
-
Providence
Members
New
Annual
be had from
the firm upon request.
Also available for distribution
Activities of St.
and
INVESTMENT
gore
the last two years
ready signed up
pany
New York Stock
York
G. H. Walker & Co.
>
resumption
common
Direct Private Wire to
New
Aug. 25 and Aug. 26 at the Palmer
House, Chicago.
Richter
present trading range of 10-11.
«
the
at
Newhard, Cook & Co.; Clarence!
dividends, compared with
of the New York Stock Exchange. a deficit of $15,758 in the corre¬
period
of
1943.
Net
Copies of this memorandum and sponding
sales increased
12%.
a report on the continuing rise in
Reflecting
this improvement,
railroad gross revenues may be
the common
had from Vilas & Hickey upon stock has recovered sharply to its
request.
represented
$132,525, equal to $0.69 per share
the
ST. LOUIS
Security
Meeting of the NSTA to be held
ter,
changes:
-
well
Ligonier stockhold¬
cheered
that the
circular
outlining the attractions of fire
and
casualty
insurance
stocks,
on
Markets in all
.SECURITIES
reservations
of profitable
operations during the first half of
1944 when net earnings
totaled
pany's
and accurate
sey-Tegeler & Co.; Henry Rich¬
IIussmann-Ligonier
Ilussmann
1 y
for
compared with half
interest requirements of
$27,700.
e a r
assurance
sen
1944, amounted
30,
give
Arbitrage Situation
With the acceptance by the In¬
terstate Commerce Commission of
L. D. 240
•
■
ert Walsh, Jerry Tegeler, Demp-
$12,998
year
i
Fast
Traders Club of St. Louis will be
Joe
com¬
that
Numerous
has been
service at
available
Funds
site.
the
Teletype—SL 486
trades
no
$1,385,000 of bonds
are
Bldg.
However,
Horning, Stifel. Nicolaus & Co.;
traffic from being diverted from
Aug.
reporting
this from Washington, added:
trading
a
Landreth
803
ST. LOUIS 2, MO.
on
removing
mo¬
Hatch
generous demobilization
The United Press, in
Peitason, Tenenbaum Co.
range of 89 - 91 flat to a present bid price of around 40 flat.
bondholders have been reluctant to sell at this level and
American farmer."y«.y.y itm
attractive
AFL-
CIO
St. Louis
Garfield 0225
UD. 123
Chester, Illinois Toll Bridge
(Rep., Vt.)
sory
joiilt committee of Congress
would maintain a "continuous sur¬
veillance" over the demobilization
Louis 2, Mo.
St.
;
Reflecting the collapse of two spans of the bridge during an elec¬
trical storm July 29, 1944, City of Chester, Illinois 4% Toll Bridge
the
The Senate shouted down
tion by Senator Aiken
Chicago
Quoted
—
Missouri Brevities
but has
State socialism."
into
1944
.
v
Landreth Building
Bell Teletype
agency
A
INCORPORATED
1890
SCHEHCB4, RICHTER COMPANY
outstanding
(Dem.,
that
The George
House for action
STIFEL, NICOLAUS & CO.
common
which interest was#
1,
1944.
"All tion.
Copies
are
available
to
Estimating that the George pro¬ defaulted March
risk" insurance (with a 2% de¬ dealers.
posal would cost "something less
ductible clause)
was carried on
than $1,000,000,000," as against "at
Scherck, Richter Company have
least $15,000,000,000" for the Mur¬ the bridge in an amount equal to issued an
interesting analysis of
the construction cost. It has been Panhandle
ray-Kilgore
proposal,
Senator
Eastern
Pipe
Line.
Taft said the tax burden under reported that the insurance com¬
Copies are available to dealers.
pany has assumed the liability for
the latter would be so heavy that
St. Louis Traders Will Attend
spans
(esti¬
"it would gradually destroy pri¬ rebuilding the two
NSTA Annual Meeting
vate enterprise and we would be mated cost $400,000 to $450,000),
New
pockets
and the White House
keeping hands off, the opponents
of the measure were in no mood
Sold
Louis
common
St. Louis
—■
Bottling Co.
St.
St. Louis Bank Stocks
City Public Service pfd. &
Bought
Bonds
-
serv¬
ing at $50 a month and others re¬
ceiving high wages in war indus¬
try," Mr. Taft told the Senate in
payments to ex-Federal
States for
of
the phil¬
on
and
Seven Up
St. Louis Public Service Class "A"
Kansas
Preferred
-
Missouri Power & Light Pfd.
Pipe Line
Southwestern Public Service
osophy projected in the Murraysion under
a
Presidentially-ap¬ Kilgore bill."
On Aug. 10 Senator Taft (Re¬
pointed
director
to coordinate
criticized as "funda¬
planning for the gigantic switch¬ publican)
wrong" what he said
back to a peacetime economy. We mentally
were attempts by sponsors of the
quote from Associated Press ac¬
demobilization
counts
from Washington, which Murray - Kilgore
bill to provide post-war benefits
also stated:
a
par with
It embraces a provision extend¬ to war workers on
those provided for soldiers and
ing post-war unemployment com¬
sailors.
In part; the Associated
pensation coverage to 3,500,000
Press
advices of that date also
employees of the Government, in
said:
addition to the millions now cov¬
"I cannot see a parallel be¬
ered, but leaves the fixing of
rates
Company
Midcontinent Airlines
enter
to
Common
Chicago & Southern Airlines
rights" post-war reconversion and unemployment bill. The bill went
through the Senate with the support of a Republican-Southern Demo¬
cratic coalition, after the rejection, by a vote of 49 to 25, of the
Murray-Kilgore measure setting up Federal standards of unemploy¬
ment compensation.
Both the George bill and the Murray-Kilgore
measure were referred to in our#
ment, Senator George remarked
issue of Aug. 10, page 600.
The
Fulton Iron Works
Corporation
Universal Match
-
"States
a
Anheuser-Busch, Inc. Capital
"
Louis Stock Exchange
Teletype
SL
158
L.D.
71
THE COMMERCIAL & FINANCIAL CHRONICLE
692
Thursday, August 17, 1944
Predicts
Sugar Rationing For
Indnstrial Users Through 1945
PRIMARY MARKETS IN
BANK and INSURANCE
Royal Bank of Scotland
Incorporated by Royal Charter 1727
HEAD
(Continued from first page)
scarce.
dissatisfaction at-the low¬
est point possible under the cir¬
cumstances, would try to increase
armies
It is
the
Street
Salle
La
7535
FRanklin
NEW YORK, BOSTON, CHICAGO,
FRANCISCO AND SEATTLE
SAN
ANGELES,
LOS
LOUIS,
ST.
S,
CG-105
SYSTEM CONNECTING:
WIRE
PRIVATE
135
'
1-2875
NY
3
Chicago
0650
HUBbard
3-0783
Square
Office
Post
10
Street
Wall
9
Boston
5
York
New
able,
assume
to keep
"
TO
TELEPHONES
HARTFORD.
-
6011
Enterprise
*
Enterprise % 7008
PORTLAND,
7008
Enterprise
PROVIDENCE,
..
allotment at least to
would
use—which
1941
100% of
not take
into account the normal
in
Slocks
Bank and Insurance
By E. A.
:
diers
civilian life.
to
clear our line of
wish to bring out
some salient points concerning the
world sugar situation and the in¬
dicated
supply picture for the
United States during the next two
"In
Stocks
This Week—Insurance
increase
population or the return of sol¬
making
reasoning,
TAN DEUSEN
Net Premium
% Increase
Volume First
Over First
6 Months, 1944
6 Months, 1943
$5,082,000
11.9%
Company—
Indemnity
Fidelity & Deposit
Home Indemnity —
♦Century
2,610,000
V. S. Casualty
14.8
47.2
3.365,000
9,288,000
22.7
23,947.000
V. S. Guarantee__————
9.6
—
•
■
5.9
2,884,000
*Owned by Aetna
•
each instance.
021,
that
ports
results
The
1943.
of
company
Laird, Bissell & Meeds
Members
Consolidated
six
Insurance
Co.
re¬
Fidelity-Phenix
Insurance
Dividend
MONTHLY
the
of
*
a net pre¬
$11,925,274
FIRE
(Reported by
*'
■
first
half
in
12%
increase in fire
IN
THE
UNITED
1943
is
that
1944
Increase
39.1%
33,175,000
38,280,000
—0.3
34,746,000
1.5
29,297,000
32,815,000
12.0
30,355,000
13.8
——___
26,854,000
________—
Total
—___
'
$190,514,000
The increased tempo of indus¬
try under the pressure of the war
effort, necessitating two and three
shifts of workers and the employ¬
ment of thousands of inexperi¬
enced men and women, and even
boys and girls, has introduced an
abnormally high degree of fire
hazard which has been manifested
in a substantial increase in fire
since
reasonable
Pearl
to
Harbor.
believe
-
that
It
is
the
trend will be reversed as the war
effort lessens and normal peace¬
time
operations
are
resumed.
Nevertheless,
fire
know, India
her own pro¬
normally consumes
duction, and will not become
an
cially
$214,052,000
12.4%
prosperous
fire
insurance
industry.
Commenting
on
fire
losses
in
the nation, a recent issue of Best's
Insurance News 'has this to say:
"Good progress has been made in
fire prevention work but never¬
theless
many
thousands
of
lives
continue to be taken annually by
fire.
In addition there are
huge
property losses which for the
rent year are
$400,000,000,
sulted
from
sell.
phenomenally high
feel impelled to
We believe, however, that
India
in
that
she
so
would
the
next
will not become
several
years
important ex¬
porter of sugar because we do not
expect prices high enough to in¬
duce her to part with her sugar.
"Australia,
a
an
substantial
pro¬
cur¬
expected to exceed
many
pure
(in 1938-1939, she
834,000 long tons, raw
of which
re¬
carelessness.
This terrific toll will continue
ap¬
proximately 350,000 tons—the bal¬
to
of which
shipped chiefly
the United Kingdom and Can¬
was
her 1943-44 crop will run only a
little
over
520,000 tons, which
leaves
relatively very little for
export, especially considering the
fact
that
troops
she
in
must
supply
Australia
and
our
other
areas.
"As for the European situation,
the sugar world is very much in
the dark
as
to conditions at pres¬
ent.
Europe (including Russial
prior to the war produced 8,590,-
000
long tons and consumed 11,783,000 tons. It has not been get¬
ting enough fertilizer.
Labor is
un¬
losses in the abated until public indifference to
United States are expected to re¬ the fundamental
requirements of
main at a fairly high level, a fact fire prevention is overcome."
which justifies and necessitates
With regard to the tragic circus
the continued existence of an ac¬ fire at Hartford,
Conn., on July 6,
tive, alert, progressive and finan- it is reported that fire insurance
of volume, but, as you
ada) has lost much ground during
the past few years as the result
of the war.
Indications are that
'
losses
greatest sugar producers in point
ance
15.4
39,084,000
...
—
the. world's
of
one
value, of which she consumed
34,241,000
_______
is
produced
39,214,000
__
"India
except
ducer of sugar
$38,572,000
$27,733,000
___
Philippines
in
terms of, say, two years or longer.
The same observation may be ap¬
plied with equal justice to Java.
in the following
STATES
1943
.
March
June
a
as shown
tabulation:
LOSSES
—
April
May
was
National Board of Fire Underwriters)
;...
January
February
Conti¬
the
should rise
losses,
<
by
coverage
1.62 times, and for FidelityPhenix, 1.68 times.
One reason why net operating
profits of the fire insurance com¬
panies for the first six months of
1944 are fractionally below those
premium business, with
of
first
repre¬
substantial flow of sugar
a
nental Insurance for the half year
there
volume
fore, of
important exporting country un¬
less
prices
in
other
countries
also reports a substantial gain in
mium
possibilities that the sugar prop¬
may
become
battlefields
and thus be destroyed.
One can¬
not talk with confidence, there¬
is
Co.
(we
tempted
probable
••
coverage in an amount
$500,000
exceeding
carried by FidelityPhenix Fire Insurance Co., Glens
Falls Insurance Co., Home Insur¬
ance Co. and Royal Insurance
Co.,
Ltd.
•,
t
was
,
Associated Banks:
Williams
Deacon's
Bank, Ltd.
Glyn Mills & Co.
review
have
only at¬
briefly the
situations in the major
sugar-producing areas), it will be
to
NATIONAL BANK
that the sugar
picture is any¬
thing but a bright one and that it
will take a long time to balance
consumption and production, cer¬
tainly two or more years from the
seen
time hostilities
"Let
in
cease
consider
us
of INDIA. LIMITED
Bankers
Head
Office:
market.
that balance
Kingdom. Ob¬
viously, the Western Hemisphere
far
as
as
is not
net
a
"The
about
in
area.
Branches
in India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar
and
the
United
the
longer depend
shifting
a
with
States
in
that
result
can
the
upon
no
regular
amount of sugar from our normal
supplying areas. Lend-lease, this
will probably take from the
year,
Western
in
the
tons.
Hemisphere
neighborhood
This
amount
an
700,000
of
will
probably be in¬
1945, further aggravat¬
ing our supply picture. And bear
in mind we are not normally an
important sugar exporting coun¬
try.
To illustrate, in the 700,000
creased in
tons mentioned, about 150,000 tons
going to
Africa, which
North
are
ported
and
West
normally im¬
tons
annually.
areas
300,000
Then too, under the UNRRA pro¬
gram,
that
it is reasonable to
after
tory,
the
assume
first flush
substantial
vic¬
of
quantities
of
sugar will be moved to the freed
nations of Europe.
A large part
of it will undoubtedly come from
us
or
Our
our
normal
areas
Subscribed
of supply.
Capital
Capital
Paid-Up
Reserve
The
£4,000,000
£2,000,000
£2,200,000
Fund
Bank
conducts
description
every
banking and exchange
Trusteeships
and
of
business
Executorship*
also undertaken
cooperation in the matter of price,
labor
supply,
competing
crops, etc.
It is safe to say that
farm
it
will
not
reach
record
propor¬
tions.
"Normally,
duces
disruption of the normal
routes
movement,
we
importing
It
has naturally brought
war
a
trade
self-supporting
is concerned.
sugar
in
Uganda
26, Bishopsgate,
London, E. C.
situation
the world
in
Government
Colony and
Europe.
the
the
to
Kenya
in the Western
in normal times is
erties
a
share for the 1943 first half year.
premium writings at
$i5,26l,115, compared with $14,086,257 for the first half of 1943,
a gain of 8.4%.
Net adjusted op¬
erating profits for the six months,
after taxes, are estimated to be
$1.62 per share compared with
$1.65 for the first half of last year.
;
the
This
1943.
gain of 5.6%.
Total net
adjusted operating profits, after
taxes, are estimated at $1.85 per
share, compared with $1.95 per
net
ports
of
months
sents
for
$11,295,852
against
net
/
outside of the Western
areas
Hemisphere
trickles out of Java
news
the
from
operating profits, including those
of affiliates, are reported at $2.27
per share, compared with $2.26
for the same period last year.
^Continental
1-1248-49
Teletype—NY
Bell
(L. A. Gibbs, Manager Trading Department)
satisfactory operating
experienced, despite
taxes.
Exchange
Telephone: BArclpy 7-3500
were
heavier
Stock
York
New
•'
re¬
went to the United
may work a great
d§£l of havoc, to say nothing of the
120 BROADWAY, NEW YORK R, N. Y.
re¬
pal
ASSETS
£115,681,681
"Considering, then, the princi¬
substantial purchaser
in the world markets.
a
ippines, they
gain of 15% over the first
a
the
the Japs are forced out of the Phil¬
Unlisted Issues
six months to have been $10,590,half
of
pine sugar men that when and as
Inquiries invited in all
r Very few
fire insurance com¬
panies' reports have yet been re¬
leased. The first mid-year state¬
ment to appear was that of St
Paul Fire & Marine, which shows
net premium writings for the first
of Russia where
part
Philippines, two impor¬
tant producers.
We have recently
learned, however, on good au¬
thority that sugar mills generally
throughout the Philippines are in¬
tact. Yet it is recognized by Philip¬
Stocks
in
substantially higher
TOTAL
tremendous
a
being sold
and
Insurance
Burlington Gardens, W. I
habilitate the fields and sugar fac¬
tories.
A substantial part of
"Little
Bank and
year-end, admitted assets and sur¬
are
be
,
64 New Bond Street, W. /
tons and consumed 9,157,000 tons,
the major portion of the balance
of sugar
the group re¬
ports favorable underwriting re¬
sults and net investment income
in the face of heavy war-time tax¬
ation.
Compared with the 1943
plus
will
amount of work to be done to
ability
case
substantial
industry,
Insurance Co.
"Each company in
there
Smithfield, E. C. /
Charing Cross, S. W. /
that
Europe
ends in
war
will be, until she rehabilitates her
14.7%
___
1
whenever the
that Russia in the post-war period
.f:, Average
t
8 West
reason¬
Hemisphere. Com¬
paring total normal production of
the
Western
Hemisphere with
consumption, we have this pic¬
ture: In 1938-1939, the Western
Hemisphere produced 10,326,000
a
8.5
4,354,000
_-
of Europe.
therefore, to
OFFICES:
Bishopsgate, E. C. 2
49
industry has suf¬
fered tremendously from the lack
been
consider the
7.0
2,859,000
Casualt
National
4.4
3
sugar
to produce sugar has
been de¬
stroyed. There is every indication
5,833,000
Manufacturers Casua
crippled or destroyed. Of a
world
production
of 29,478,000
tons in 1938-1939, 11,841,000 tons
were produced in these areas.
As
an
example of what this means,
LONDON
tory has been bombed relentlessly.
We might also state that the Eu¬
ropean
throughout Scotland
es¬
sential repairs have been made to
the factories.
Much of the terri¬
we
possible to pause and appraise the
current trend of the insurance business as revealed by such mid-year
statements of insurance companies as have thus far been released.
years.
First of all, we should ob¬
Casualty companies are reporting profitable operations in the serve that there is a world-wide
first six months on an increasing volume of premium business. Nine shortage of sugar. As we pointed
leading stock casualty companies, for example, show an average in¬ out in our study of March 27,1944,
crease of approximately 14.7% in*
approximately 40% of the world
the similar period last year, as
sugar-producing areas is either
premium volume for the first six
shown in the accompanying table:
under
Axis domination or
has
months of 1944 compared with
of year it is
About this time
only
OFFICE—Edinburgh
Branches
of skilled technical men, as many
of these have been drawn into the
even
Huff, Geyer & Hecht
67
five years,
might be raised to 100% or
higher—but any opinion as
to the percentage figure must be
the rankest guesswork because of
the very uncertain conditions sur¬
rounding supply. Our guess would
be that the Government, in order
ments
WHitehall
For
;
Puerto
Rico
pro¬
around
900,000 long tons
per annum, of which we receive
all, after allowing for local con¬
sumption. This year her produc¬
tion is 647,000 tons, or a loss of
250,000
over
has
tons.
Puerto
Rico
problems, i.e., politics,
scarcity of the right kind
many
labor,
of fertilizer, etc. We cannot, there¬
fore, be optimistic at this time as
to improvement in Puerto Rican
sugar production in 1945.
"Cuba
this year produced 5,long tons, of which ap¬
proximately 800,000 tons were in
the form of high test molasses to
046,000
be
for
used
This
was
industrial
purposes.
abnormally large
only 110,000 tons below her
crop,
all-time
an
of
record
5,156,000 tons
1928-29, when
produced. This
were
only
was
accomplished by her
stalk of sugarcane
standing in the fields. That there
grinding
every
much
was
so
was
the result of
to grind
enlarged plant¬
ings in 1942, which were not re¬
peated
in
sugarcane
the
1943.
that
same
For 1945,
mate
volume
therefore,
Cuba
will
in
esti¬
we
produce at
forces this year will
least 10%
less than she produced
something in the neigh¬
borhood of 800,000 tons. Although,
this year.
Of course, it should be
obviously, these
would have
taken
if they were home, it is
well known that in the army their
sugar
armed
consume
men
been fed
sugar
consumption is stepped
Some estimates indicate that
per
capita basis they will
up.
on
a
consume
135 pounds as compared with the
normal
over
civilian figure of
100 pounds per
"In
the
foregoing
a
little
capita.
we
a
shortage of sugar, that the
supplies of the United
being encroached upon,
normal
States
are
and that this will continue for at
least two years more.
"We have not
the
production
the
several
an
you
know,
a
of
supplying the
This, of course, is
extremely
As
was
potentialities
important
the beet
disasterous
there
the
1945
large
as
not be
Cuban pro¬
may
taken
a
quantity
of
industrial
for
purposes
as
this year.
that this is
To the de¬
it will bolster
the sugar supply available for in¬
gree
dustrial
users
the United
so,
and
the
public in
States.
terial
change in the production
picture in Louisiana and Florida,
either this year or next year.
"A word is in order on the sub¬
ject of invisibles.
visible
today.
yet discussed
areas
United States.
1943
as
duction
was
that
from
"We do not anticipate any ma¬
have at¬
tempted to show that there is
world
observed
subject.
in
failure,
crop
amounting to 853,000 long tons,
raw value, as compared with
1,543,000 tons in the preceding cam¬
paign.
The
current
crop
Will
probably not exceed last year's
crop by more than 100,000 tons.
As to beet production in 1945, it is
too early to make an estimate.
Obviously, in¬
supplies are infinitesimal
Almost everybody is on a
hand-to-mouth basis.
In 1941, the
invisible supply reached
approxi¬
mately
1,000,000 tons.
With in¬
visible supplies practically nil and
with
the
picture
may
production
generally
and supply
uninspiring, it
be anticipated that
our
Gov¬
ernment will find it necessary to
maintain rationing until we have
in sight sufficient supplies to take
care
of
building
normal demands and
up
of invisibles
in
the
the
hands of the trade.
"The foregoing will make clear
the reasoning by which
we reach
Much will depend on Government the conclusion that industrial User
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4308
160
rationing will be maintained
sugar
during the next year and a half or
We believe that under
two years.
the
conditions
our
is
estimate
>
conservative.
"As
method by which
dilemma
this unfortunate
improved,
be
may
that is for
civilian
goods, it can still be han¬
dicapped by the heavy hand of
bureaucracy.
it, there is only one
see
we
parently has been given the green
light to resume production of
and
as an
illustration.
tories
are
and
Ways
increasing
of
means
production. The most direct
method and the
the
duce
likely to
one
Quickest
raise the price.
is
results
We
pro¬
to
fully in
are
sympathy with the 'hold the line'
the
but
order,
develop
situation
may
chances
the
Republican
on
the
maximums
of
in the
Presidential elec¬
motionless
on
the brink
reconversion, for the nation's
only factory manufacturing piano
keys and action mechanisms has
been shut down because of what
is termed the failure of the OPA
to
issue
adequate
ceiling
Peace
vember
price bullish
news
arriving before No¬
a somewhat
might have
at the present
influence
on
the
theory
and
so
higher
price.
"We mention this situation be¬
the decisions taken in
cause
it. will have
nection with
important effect
of
rationing
on
the duration
the
and
con¬
most
a
allotments
given industrial users."
How Will Germany's
Defeat Affect Market?
(Continued from
682)
page
the previous
day; a week later it
Was three points higher, and two
weeks
later
six
points higher,
reaching a new high on July 10
at 150.50.
This
Average is now fluctuat¬
the neighborhood of 145,
ing in
for
and
for
the
near-term
look
we
trading range of from 143 to
a
If
150.
when
the
peace
news
the market is at the lower
comes
level of this range, we anticipate
a
reaction hardly any greater than
occurred
the
on
invasion
news,
followed
by steady absorption of
stocks by the plethora of funds
seeking investment.
<
.If the peace news should come
with
the
level
or
market
after
at
the
has
it
higher
enjoyed a
further
advance, a more substan¬
tial relapse would be likely. On
other
the
hand, if in the
the
time
mean¬
should
market
have
worked lower to any material ex¬
tent,
in
probability
all
would be
a
rally
seen.
The Factor of Reconversion
Progress
conversion
The
of
industrial
production to war purposes was
expedited by Government orders
and
was
accomplished rapidly.
The same urgent and patriotic at¬
mosphere does not apply to the
reconversion process.
There has
been sharp difference of opinion
between the military authorities
A
and the War Production Board on
the
subject of the desirability of
allowing reconversion to begin.
;
The
controversy was ended with
the preparation of
ders
to
go
four WPB or¬
into effect as follows:
aluminum
and mag¬
July 22, making
experimental models permit¬
15,
July
nesium released;
of
ted; July 29, placing of machine
tool and manufacturing machinery
orders
lowed
Aug.
15,
manufacture
al¬
and
approved;
civilian
limited
begin, provided that it
to
does not interfere with necessary
war
production.
has made plans
While industry
reconversion, the Government
far has not acted with the same
for
so
Legislation is still to be
the orderly disposal of
celerity.
enacted
war
on
surplus materials and on de¬
unemployment com¬
mobilization
pensation.
therefore,
Much
the
on
will
depend,
that
progress
has been made in reconversion
by
necessary
admits defeat.
legislation has been
enacted
and
satisfactory progress
has
accomplished, it should
cushion against whatever
the time Germany
If
act
been
as
a
immediate
peace
shock
produces
in
the
news
of
the minds of
investors.
Bureaucracy a Possible Handicap
Even when
ished its
war
an
_
industry has fin¬
production and ap¬
substantial
'
(150
<
or
level (145), a slight & Investment Dept. of the Na¬
temporary reaction can be tional Securities & Research Cor¬
expected, which would be more poration,
prevailing
(2) much too little sugar
or
party's
from a higher level
more), while from a lower
March 1942 which, in view of a tion would be improved if the range of prices
(143 or below) a
35% rise in costs since that time, European war were over.
rally would be logical. Much may
preclude profitable operation.
depend on the extent to which
If similar conditions should ob¬
Conclusion
reconversion
is
being
accom¬
tain in other and more important
The end of the war with Ger¬ plished efficiently and profitably
industries, so that while ready many is visible in the near future, within OPA price ceilings. After
themselves for reconversion they and in our
opinion the action of the initial impact of the news is
are
prevented
from
operating the market will be largely depen¬ absorbed, we feel that the longprofitably, the result could hardly dent on its technical position at term effect cannot be other than
fail to be a depressing influence the time. If the news comes with constructive.— From "Investment
on stock prices.
prices in the neighborhood of the Timing," issued by the Economics
based
to present two alterna¬
as
tives: (1) more sugar and a
price,
The piano fac¬
Government to find
our
that
ing
*
while relatively small, can serve
of
sugar
The piano industry,
regulations, its ceiling prices be¬
MFE
IN
Springfield^ Massachusetts
.Bert raiidjJt PerryJPresident)
THE COMMERCIAL & FINANCIAL CHRONICLE
694
Heavy Munitions
Superior Rights For Inferiors
Production In Canada
Canadian Securities
Government
"Intensive
Provincial
-
Public Utility
Municipal
industrial
to
in
scene
Government's
the
program calling for still greater
expenditures on military account
as the war approaches its climax,"
Toronto & Montreal
Direct Private Wires to
continues
war
the
with
Canada,
the
productionof
of
munitions
dominate
the Bank
said
Wood, Gundy & Co.
which
of Montreal
Business
22
July
in its
Summary,
"The
it also stated:
in
effect
the
of
continuing high level of
expenditure is in¬
creasingly evident upon domestic
Incorporated
(Continued from page 683)
by a superior who accepts respon¬
ing.
According to this new doc¬ sibility for the child's conduct
trine, since all persons must be and welfare. When people seek
without
regarded as equal, those who are liberty
self-discipline,
in
obviously
inferior
positions only a paternalistic, tyrannical
must be given superior rights so government can take care of them.
that
they
can
maintain
their
to
equally insane line of think¬
an
,
London, England
Vancouver
Winnipeg
Montreal
Toronto
New York 5
trade, the dollar volume of which
is
j
greater than at
this time last year, despite short¬
ages of labor and materials. Holi¬
day resorts are crowded and pas¬
confound the prophets of gloom
fcnd disaster. Since the Saskatchewan elections when the complacency
in Canadian financial quarters was rudely disturbed by the sweeping
gains in that province, there has been a tendency towards
C. C. F.
(pessimistic forebodings in every direction,
p
,
The C. C. F. victory in Sasbirthplace of
always a
the
katchewan,
movement,
•the
was
j distinct
possibility, just as it
was
predicted in this column
ithat the well organized Social
CANADIAN BONDS
in Alberta should
Credit party
triumphantly.
In Que¬
bec, again the party best organemerge
GOVERNMENT
gained the day,
fearful prognosti¬
French Canadian
ized provincially
and
despite
cations,
the
Electorate
;
'
showed
more
once
six months of 1939
PROVINCIAL
have
Canada
practical al¬
ternative, they will readily ignore
the C. C. F.
the C. C.
CANADIAN STOCKS
where
it
therefore,
NEW YORK 5,
tions
until after the warr
also
appear
Mr.
King
that
the
continue
to
in
power
in
seats
the
House
of
tend
best
friend
outside
the
and
not
of
Mr.
John
Bracken, the
way
in
the
Commons has contributed in
degree
to
the
popularity of the
party.
.
^
of
no
,
in
■:
is the most
the
same
Columbia
as¬
the
Dominion,
jwill not fail to capitalize dri the
present C. C. F. debacle, and the
family Allowances Act recently
passed in the Canadian Parliament
All crops in Brit¬
date.
reported
are
to
be
satisfactory."
Canadian
remaining
blemish
financial
on
record
the
will
thus be removed.
Internal
continued
in
supply and the Canadian dollar in
the "free market"
was
still offered
longer in supply at 9%% discount. Now that Can¬
and prices improved about a
% ada no longer enjoys the benefit
of the Hyde Park Agreement and
point.
Albertas strengthened nearly 2 has largely utilized her surplus
are now
well
on
ment.
Before
Social
Credit
the way to fulfill¬
the elections, the
party' leaders < gave
considerable publicity to their ef¬
forts in this direction and they
consider that they have
a mandate from the
electorate to
(King Government is effectively implement their proposals. Should
(stealing the socialistic thunder of this be finally consummated, the
can
now
S.
U.
dollar balances
for various
by
us
in
payment
installations built
war
within the
question
of
Dominion, the
Canadian dollar
the
returning to parity seems to be
definitely, deferred at least until
after the
war.
Meanwhile, there will be
ther
lis indicative of the fact that the
,a
fur¬
supply of Canadian exchange
in the free market
resulting from
of the 4V2% Domin¬
the payment
.
ion
Refunding Loan due next Oc¬
intend
we
is:
Let
equalities
inequality
be
determined
&
Company
the basis of genuine
on
differences.
of
of
Loan
the
Oct.
3xk%
Re¬
,
STREET, NEW YORK 5' v
regard
to
possible
fu¬
ture market developments, there
is
no
doubt
position is
that
now
the
technical
definitely strong.
In addition to the steady liqui¬
and
deny
maintain
to
as
so
tense
the winners
the silly pre¬
credit to
♦
Municipal
♦
political
uncertainties,
that
all
contestants
are
forgiven,
that
injustice to those who are
punished.
There must be rules of
penalty
and
compensation
for
wrong which are enforced univer¬
sally. A modern tendency to find
social
responsibility
conduct
the
is
for
denial
a
law-abiding.
of
all bad
justice to
This does infin¬
ite harm to weak, anti-social per¬
They
wrong—just
sons.
encouraged in
doles encourage
are
as
idleness.
(1) We have gone too far irt
seeking unearned "freedom," be¬
cause
of
the
persistence
of
tyranny.
(2) We have gone too far iii
seeking unearned "equality," be¬
cause of the persistence of oppres¬
sion and inherited
be
not
done.
A
or
"superior people" is fraudulent.
Biological
and ; anthropological
science, arid historical knowledge,
a
the claim
prove
individuals
fraud. But
a
some
•
Government, Management,
and Labor
many
sought to
labor leaders
years,
restrain
the
powers of management
a
counteracting
in
labor
to
was
build
autocratic
by creating
balancing
or
unions.
The
the
up
as
a
nations are,
or
whole, superior
ganized
effort
economic
to
men
strength of or¬
In this struggle,
money.
others, government for
to
power
main
superior; and it is
strength of organized
entirely reasonable to claim that equal the economic
are
communities
and
management,
labor.
were
"master race"
a
perfect example
of this vain effort is provided by
the present confused relations of
For
The claim of
a long time gave
potent aid to management, because
But faith in of the
public duty to preserve law
oneself and one's companions is
and order and to protect
property
essential to progress. We must be¬
rights.
lieve
that,, inn some <w&ys; our
A Major Blunder
as
whole.
a
be
may
and
course
Of
the
course
claim
disputed.
results
our
Otherwise
are
better.
thinking and planning
become sterile.
Then
there
inequalities of
are
position which
give at times su¬
perior rights to persons who may
be inferior to their subordinates in
a
hundred
ways,
but whose tem¬
of
position
recognized.
The traffic
policeman has a superior right to
tell you where and when to move.
The salesman, behind his counter,
has one superior right over the
must
superiority
be
customer.
He
works
has
in
is
goods and the
control
of the
cash register. The
manager
the
right
or
superior
a
foreman
the
over
direct what work
wage-earner to
shall be done and how and when.
None
of
these
superior
rights
makes the other party inferior
except to the extent that he is ac¬
tually in an inferior position. The
automobile driver is only subject
to the policeman's orders when he
comes within
the sphere of his
authority. The customer is only in¬
Then
organized labor began to
its political power—the
strength of the masses.
mobilize
voting
Government
became
the workers
and
to
restrict
nomic
and
an
weaken
of
force
the
eco¬
major blunder
a
public policy.
ally
management^
of
power
Right here began
in
the
active
The creation or
the grant of power without corre¬
sponding responsibility is an eco¬
or political sin.
Any sound
plan for economic or political
nomic
progress must avoid this evil.
A glaring weakness in our cap¬
italistic
had
economy
been
th$
irresponsible power of organized
money. As the minor power of a
millionaire
major
had
power
grown
of
into the
dollar
billion
a
corporation, there had been no
corresponding increase of social
obligations. Yet self-preservatiori
did
impose * upon
this
money
a strong interest in order
discipline, and a moderate*
even though a
secondary, interest
in the general welfare.
power
and
on one
side
But, when government lent it$
worker may
have equal or superior rights in great aid to increasing the economic
bargaining, in fixing the terms of strength of the workers, it tolerft
ated and actually encouraged d
private interest in disorder and
exercise, a superiority in bossing disregard for the general welfare.
the job. To give the inferior posi¬ It created and sustained a legal¬
tion a superior right of control is ized right in the workers to dis*
worse than wrong. It is ridiculous. organize production and distribuj,
his employment. But the manage¬
ment must have, and be free to
tion
2.
Corporate
Ontario
4^s
introduces
^
a
of
Sept.
difficult
1,
Real
right.
is
It
liberty of
*
the
isn't
an
absolute
product of
The "freedom" of
responsible
replace-
"freedom."
consider
freedom
control.
1944,
maent *ptob!enM \ i i i i m i m
Now
a
person
child. It
as
ment.
Freedom
the
supply of external bonds from
Canada
is
becoming increas¬
ingly
limited and the recent
private refunding of $18,325,000
canadian securities
Provincial
wrong¬
penalty
a
some
means
equally good!
dation that has taken place due
"
to
•
paid
one
of the counter. The
date
15, 1949,
which issues are both fairly wide¬
ly held in this country.
WHitehall 3-1874
Government
no
How
absurd
to
compete for
prizes and then take them away government,
ferior to the salesman
same
With
%
people does
as
tober 15 and the probable call on
funding
64 WALL
to
and
the
Taylor, Deale
all
handicaps.
(3) We have done too far in seek¬
ing unearned "justice," because of
a fact. Do not
impose an artificial
the persistence of so much avoid¬
inequality by law, either as a
able injustice.
birthright or a special privilege.
But, now we are facing the great
The purpose of "equality before
the law" is not to create or main¬ evils of an attempt to establish an
all responsible government for an
tain a fictitious equality, but to
rresponsible people. It simply can¬
establish social and economic in¬
principle
porary
issues
were no
points and it appears that past
predictions concerning the early
refunding of the provincial debt
Conservative
;
I Mr. King, who
tute politician in
decline
ahead
only
for sale
'
small
to be expected, in view
beneficial clarification of
before
that crops are two weeks
of last year's condition at
dicate
the
long-term Canadian Nationals
which have recently been pressed
rep-
House
years
wheat-cutting
on
ex¬
was
the
be "the
whether
If
for
forgiveness of
for wrong, there would be anarchy
and increasing rewards of evil. If
"equality."
century of
man," let us under¬ only
common
stand
Saskatchewan
the end of the month. Reports in¬
The
Pro-
and his failure to seek
1 resentation
ten
atmosphere, the mar¬
during the past week ceased
to
drag and in many sections
registered definite improvement.
| gressive Conservative leader,
I has failed to make any head-
!
another
pected
ket
party.
areas in
south-west
being particularly good
where a start is ex¬
the political
a
dry
and
in Manitoba,
ish
Federal
a
for
As
prov¬
ince and the Union Nationale is
provincial
Admin¬
charters of the banks.
Com-
jnons should continue to support
its
present
to amend the Bank Act and to
decidedly improved. The
jcey province of Quebec with its
65
the
istration is the final passage by a
vote of 84 to 6 of Mr. Ilsley's bill
are now
in
Alberta
west-central
outlook
A further proof of the
of
the
doing.
few moments
a
discussion of
sane
some
and
strength
of
have
timely
good growing weather,
southern
NY-1-1045
by
yields will be low, good yields, on
the whole, are in pipspect, the
the C. C, F.
It, would
chances
and
conditions
maintained
and V although
RECTOR 2-7231
is
Clearer and it now
that there will be no Federal'elec¬
weather
well
rains
N.Y.
would
decidedly
seem? certain
the bank, which
Ontario, as a whole,
"In
vorable
been
surprising to see
the C. C. F. make some headway.
The
immediate
political out¬
look,
in
short
prospects are for average or
better-than-average yields. In the
Prairie Provinces the previous fa¬
TWO WALL STREET
been
have
us
If this is to
crop
INCORPORATED
Solid bulwark against all forms of
extremism, one seat only, and
this not in one of the wide-spread
areas
and
is
crop
progress," said
added:
A. E. AMES & CO.
bers elected—and in Quebec, that
have
its
in
owing to dry weather, but cereals
and other crops are making good
it
confidently anticipated that
the party would sweep the prov¬
ince?
The expected pairie fire
jnovement proved to be a very
damp squib — two C. C. F. mem¬
industrial
Provinces
the /hay
Quebec
Was
hot
Maritime
the
What happended to
F. in Alberta where
Montreal
of
July 22 stated
that "reports from all sections of
the Dominion forecast good yields,
in the aggregate, of the majority
of the principal field crops." "In
demon¬
clearly
strated that, given a
Bank
The
Business Summary
all the alarmist fore¬
casts to the contrary, the people
of
of
Let
demonstrated
Good Crop Yields Forecast
,
CORPORATION
jPopulaire.
ij Thus, with
27,796,000
was
tons."
MUNICIPAL
its conservatism and completely
rejected
the
extremist
Bloc
1.
Justice
not include
senger
By BRUCE WILLIAMS
Canada continue to
Events in
3.
Equality
glorify the common man by en¬
traffic is taxing the capa¬ larging his opportunity to ad¬
vance
himself, or by preventing
city both of railways and of in¬
land
steamship
lines.
Freight any uncommon man from achiev¬
traffic, too, continues in great vol¬ ing more than mediocrity.
No
one
has
ever
been
fool
ume.
In June, railway loadings of
revenue
freight were at an all- enough to claim that all persons
time high, the total being 9,451.- are equal in mental or physical
000 tons, as compared with 9,364,- power. Every shade of brain power
000 tons in the previous month from imbecile to scientific genius,
and 11.4% higher than the total every variety
of muscular skill
for the corresponding month of from
clumsy
plodder
to
deft
pro¬
last year. For the first half of mechanic or agile athlete,
this year the cumulative total was vides proof positive of inequal¬
52,144,000 tons, an increase of 10% ities in capacity. But there is a
over
the total for the first six democratic principle of equality
months of 1943.
The total in the of opportunity which is sane and
logical. The whole virtue of this
pre-war comparison of the first
Canadian Securities
}"1
substantially
Justice
claimed equality with their actual
superiors.
Government
14 Wall Street,
Thursday, August 17, 1944
is
can
self-
an
ir¬
like the
be only a
!sttictly4imited ^freedom, ceguiated
the
way
to
Management
forbidden to
self-advanced
was
not merely
labo£
interfere with
organization, but was made legally
helpless to boss the job and to in¬
sure
the
fulfillment
of
the
pub+
lie duties of private enterprise.
„
As
•r i
a
(
result, in order to meet its
;(Continued
.on?page
696)
t *
,
Volume 160
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4308
Message
to
i
69
America
:
from
|||||!|I)R. Thomas ; MR
Surgeon-General, U. S. Public Health Service
CONCERNING THE FUTURE OF AMERICA'S SERVICEMEN
As broadcast
-A MONG
over
every
C.B.S.,
100
who
men
jL~jL in battle and reach
a
the Schenley Laboratories9 program, "THE DOCTOR FIGHTS"
on
are
wounded
hospital, 97 will live,
than
they dreamed it
possible to endure.
was
They will ask of us—and they will have
according to Surgeon-General Kirk of the
right to ask—useful work which they
U. S. Army.
every
tally and physically able to do.
This
means
will
men
that most of
come
whole. Blood
our
back alive
—
heroic service¬
necessarily
not
plasma, the sulfa drugs and penicil¬
Industry, however, needs
before
are men¬
to retool its
thinking
retooling its machinery for postwar
duction. In the past, men have been ruled
pro¬
by the
lin, in addition to other medical discoveries
needs of the machine. After the war,
since the last war, are
machines and national planning must be fitted
of the most
seriously injured
We have
we
a
love who
caps.
saving
a
large proportion
to
men. ^
special responsibility to these
come
Our doctors have preserved their lives.
It is for
to see
us
that
they live in liberty and
men
Who
fought to
preserve
the nation.
There is another thing to consider: Many of
men
back with permanent handi¬
the
jobs, tools,
our
as
fighting
men
have learned
is humanly possible,
new
skills. So far
they should go
on
from
there. Men who have learned the intricacies of
pursuit of happiness. Each of us must receive
radar will not be satisfied
our
returned soldier with
pride, neither repelled
subscriptions. Men who have flown bombers
by,
nor
his injury. Most of
will not be happy untangling red tape. Men who
the
over-solicitous
his anxiety
as to
about it will stem from
its effect upon us and upon
about
worry
his chances for live,
with grace a
use¬
actions, that he has the capacity to be
ful and
tric elevator.
happy.
From what I have
handicapped
seen
rest
men want to
in
our
Army, Navy
Hospitals,
very
become the
few
perma-
wards of the Government and spend the
nent
of their
days in idleness. They have worked
hard.
They have stood
it
with the enemy. They have
out
job pushing buttons
on
their feet and slugged
endured
more
{reprinted
SCHENLEY
as a
war
may
The world that follows the
choose to make it,
be
near or
war
ous
beginning
now.
men
over
away.
we
Certainly it
and vigor¬
who have returned and will in
increasing numbers return from the battlefronts,
broken, perhaps, of body but high of heart."
public service)
\
»i
o
PENICILLIN-SCHENLEY
Tuesday evening
far
part of that changed world for the participa¬
tion of those
LABORATORIES, INC
Tune in "THE DOCTOR
elec¬
will be what
will be different. We must adapt a rich
Producers
every
on an
,
The end of the
and Public Health Service
the lightning cal¬
use
culators used in anti-aircraft fire will not accept
by
lihood. We must convince him, and prove it
our
have learned to build and
peddling magazine
FIGHTS", starring RAYMOND MASSEY
WABC and the Columbia Network, 9:30 E.W.T.
THE COMMERCIAL & FINANCIAL
CHRONICLE
Thursday, August 17, 1944
i M11111111111111111111111111111111111111111
Professor Fisher Lauds Outcome
pi
kv
Union Bond
:#:V
V
fif
Oi Bretton Woods Conference
Fund rfC"
Mi
lORDABBETT 6R0UP
Prospectus
Editor, The Commercial & Financial,Chronicle;
New
request
upon
My main comment on the Bretton Woods conference is one of
rejoicing that at last an international monetary and economic con¬
ference has made a fine record, and of hopefulness that its proposals
will be accepted without change by all the signatory nations.
England
Fund
OF INVESTING COMPANIES
I have
Prospectus
Lord, Abbett Sq Co.
chicago
•
Bretton Woods
efforts in good
faith to work
GENERAL
they were so fitted and
they should think, and be
justified in thinking, that Uncle
Sam would be carrying too big a
share of the load, it would be
better policy to assume the extra
burden than to have nothing done
out
*
jersey city • los angeles
INVESTORS
plans
Mutual Funds
Prospectus
on
no
sible
be
pos¬
good
service
request
could
served
by
the
scrapping
"Competent management is worth
=
That is the conclusion which Hugh W. Long & Co. reaches in a
new folder on Fundamental Investors entitled "A Good Story Gets
The story
is about
a
$500,000 order from a large estate which
did not get. Instead the money was placed in a list of 20
"Blue Chip" common stocks by the estate managers.
this sponsor
;
That
2V2
was
ago. What«>
The $500,-
years
has
happened since?
000
investment
is
ZHHZIZIIZIIZ
made
Fundamental
in
of the
instead
"Blue
Chip"
Low Priced
Shares
com¬
The
net
scored
advantage
Fundamental
Investors
on
by
a Class of Group Securities, Inc.
the
Prospectus
$149,200.09. Inter¬
estingly enough, the income from
period
Investors
that
over
the
from
the
received
63 wallstreet.
new york 5,n. y-
pected, which would be more
substantial from a higher level
*
#
(150
The Parker Corporation has is¬
sued
a
this
handed
We
low-commuter
train—a
the
man
folder
sounds
"This
to
a
His
comment
like
a
a
(143 or
rally would be log¬
After the initial im¬
.
a
.
.
pact of the news is absorbed, we
feel that the long-term effect
fel¬
coming in on the
not connected with
financial field.
was:
ical.
Investors."
from
range
below)
entitled "10 Reasons For Owning
Shares of Incorporated
more), while
of prices
or
lower
dignified, attractive folder
other than construc¬
cannot be
tive."
#
sis
/
far
which
uct,
would
problem today
— the
problem of
preventing future inflation and
deflation; and a close second is
the problem of post-war interna¬
almost
inevitably
be
the
of
result
E
trying
E amend
^11111111111! 11111II11II111111111111111111111^
The gist of this editorial
defined
the
in
title:
War
si:
good
"Careful
Essential
now
to
tional
—
in
Buying
Brought Big
Pre-War Success No
—
Personally,
Taft, for
instance,
has
qualified to improve on
what has run the gauntlet of the
experts either before or at the
Superior Rights For
Group
—
plan.
I could
name
worth¬
some
But the time for
changes has gone by. The whole
question is whether on the whole
the plans should be accepted or
should be rejected. There can be
but
one
answer.
Sincerely,
New
|l
j
IRVING
FISHER.
Haven, Conn., Aug. 11, 1944.
sible freedom, an artificial superiority and a preferential justice.
But I
The
am
confident that this
dream will
cur¬
become
never
idiqt's
a
dom¬
inating illusion in America.
I
(Continued from page 694)
own
obligations to the general believe that the majority of the
welfare, government was forced American people are still faithful
to the ideals of freedom under
Shares, Railroad
(Bond)
Shares constantly to intervene as a peace¬
maker between the fighting forces law, equality of opportunity, and
and General Bond Shares.
of labor and management.
Parker
Finally, justice without fear or favor. In
rent
monthly Investment Report
on Group Securities, Inc.; current
portfolio folders on Low Priced
.
Corp.—A
Incorporated
on
stone
Corp.
.
.
prospectusin
Investors; Key¬
new
A revision of the
—
time of war, government had
the workers and to
order the managers to work to¬
a
to
beseech
that
faith, the home front battle
the
after
war
should
be
won
by
sane
idealists upon whom
folder, "Information for Trustees,
the whole world must rely for any
Trust Officers, Bankers, Institu¬ gether in order to furnish essen¬
tial supplies to the defenders of lasting victory in the world-wide
tions, Corporations," on Keystone
war of liberation.
Bond Fund B-l; a new supple¬ the nation, fighting agaipjst for¬
mental
prospectus ,on Keystone eign enemies.
.
those
.
.
.
.
.
—
booklet
little
very
Has
.
basic
find
while additions.
ate is not
The present weaknesses in our
;A simple and convincing ex¬ Preferred Stock Fund K-2.
economy
flow largely
position of the "Indestructibility Hugh W. Long & Co.—A current political
folder
on
Manhattan from this major blunder in public
of the Class" is presented in the portfolio
Distributors
Group
has
just
Bond Fund.
Selected Invest¬ policy; our failure, as a govern¬
current issue of Keystone Corp.'s
published a new edition of its
ment Co.
A current portfolio ment, to require that a legal obli¬
Keynotes.
thing to me."
I
which I would take out of either
Mutual Fund Literature
Distributors
loans.
it. Sen¬
ator
Guide."
Incorporated
GROUP,
stocks—$89,044.16
Fundamental, as compared
with
$89,253.58
for the "Blue
Chip" list.
#
BOSTON, MASS.
Stocks
for
,
E
Changes
common
Inc.|
CO.,
HI DEVONSHIRE STREET
Analysis
Request
DISTRIBUTORS
this
exactly
almost
was
as
same
list of
on
to
Fundamental
E A. W. SMITH &
E
is
investment of $500,000
the
3V2-year
period,
amounted
E
gram."
original
over
DISTRIBUTORS:
For monetary stabilization is by
the most important economic
finished prod¬
for
Investors
stocks.
mon
E
at all.
Prof. Irving Fisher
Continuing to stress the need had full op¬
careful analysis
to
in security portunity
his
views
at
Bretton
selection. Lord, Abbett has re¬ present
printed in the current issue of Woods and it is to be hoped that
Abstracts
a
recent
editorial
by he will not, as some fear he may,
Ralph Hendershot, Financial Edi¬ try to induce the Senate to com¬
tor of the New York "World-Tele¬ plain of "the final act." The Sen¬
worth
now
$554,476.07 as against $703,676.16
had the original investment been
5
than its modest cost."
more
/?■■/.
Better."
#
if
even
of,
set
And
Conference.
if
even
accept¬
an
able
TRUST
Emphasis Where It Belongs
But aftef
^
.
pains taking
request
INCORPORATED
new york
doubt that any economist can find faults.
no
the L
of
all
on
describing
Group
original stocks in the
Securities, Inc., outlining the in¬
Dow-Jones Industrial Average are
vestment
policies pursued, and
listed to show what may happen
showing the record achieved. The
to even the best of individual is¬
booklet is entitled "Group Invest¬
sues.
Only two of those original
ing in Undervalued Securities,"
12 stocks are still in the Average,
$pd from the standpoint of both
but high-grade stocks as a class
layout and content it is a strik¬
remain, and the Dow-Jones In¬
ingly "different" piece of litera¬
dustrial Average, by the process
ture.
The
12
of making
memorandum
ican
Shares
Selected
on
and
list
a
Amer¬
gation to
addi¬
fare shall
of
serve
the general wel¬
always rise to the level
purchases for their own
any legalized power to affect
account
the general welfare. This blunder
by
directors
of
that
Fund.
Hare's Ltd.—A folder has been partly cancelled in time
"Fire Insurance After Two Wars" of war by a
temporary, assertion
and a revision of the folder dis¬ of the
supreme authority of mili¬
cussing the possibilities of a trad¬ tary command. But, when mili¬
ing position in the various groups tary authority ends and only civil
tional
of
.
.
(Continued from page 691)
Maender, Ken Hagemann, G. II.
Walker & Co.
More are expected momentarily
by Firmin Fusz, who is in charge
of reservations.
Missouri Public
Service
Commis¬
.
sion General Order No. 38
Utility managements with prop¬
erties
located
been
Missouri
in
have
the
authority remains, -we,-shall face Missouri Public Service Commis¬
the urgent choice between an im¬ sion's recently issued General Or¬
potent government, bewailing the der No. 38 which states that be¬
civil warfare which has been en¬ ginning Jan. 1, 1945, all electric,
couraged by the great blunder, or gas, water, telephone, telegraph
and heating utilities under its jur¬
a
strong government which, re¬
—
gardless of Seweli Averys and isdiction must credit depreciation
A dividend of 2%c per share
pay¬ John Lewises, will assert the su¬ reserves with earnings at the rate
able
Sept.
30,
1944, on
Bank premacy of law and the public of 5i/2% per annum. This, in ef¬
of
Institutional
Securities,
studying
of
the effect
Ltd.
substitutions whenever
Eaton & Howard, Inc.—-A new
National Securities & Research necessary, also remains—provid¬
prospectus on Eaton & Howard
Corp. makes an interesting anal¬ ing a reliable picture of the price Balanced Fund.
movement of industrial stocks.
ysis of the big question mark of
"The issues within each class
the
Dividends
present — "How Will Ger¬
change — just as the Dow-Jones
many's Defeat Affect the Mar¬
Institutional Securities, Ltd.
#
*
*
...
ket?" This discussion is contained
Industrial Average has changed
in the current issue of Investment
since 1900
Timing.
into
The conclusion is divided
three parts,
depending upon
the prevailing level of the market
at the time of Germany's defeat.
"If the
news comes
with prices
in the neighborhood of the pre¬
slight and
temporary reaction can be ex-
vailing levels (145)
a
—
but the classes
They
there.
always
are
inde¬
are
structible."
■ill
#
Group
ord
$
We've noticed steady improve¬
ment in mutual fund prospectuses
in recent years.
Shares to
holders
of
rec¬
Aug. 31, 1944.
To Admit
attention is the
mitted to
Investors
new
Mutual.
attractive
layout
prospectus
It
is
and
on
in
inviting
tops
readability.
defiance
Mary F. Henderson will be ad¬
limited
a
partnership in
Charles F. Henderson & Sons, 29
Broadway, New York City,
mem¬
stituted
ary
obstruction
authority is
a
of
con¬
revolution¬
the future
as
change,
which
Fascist
as
reactionary
or
Commu¬
or
or
radical,
demands that the law
and
the general welfare shall be up¬
held regardless of selfish demands
:^y
I JL JA XX X
V/i^U
Wanted—Sales Executive
Trust Funds
3LJU
Skujutihs Si-ries.
funds is expanding rapidly.
SALES volume in our nine trust
We
wish
to
sistant
Prospectuses upon request
Prospectus
from
may
be obtained
authorized dealers, or
The PARKER CORPORATION
ONE
COURT
ST., BOSTON
Management Associates, Boston, Mass
National Securities &
Research Corporation
120
LOS
BROADWAY, NEW YORK, (5)
ANGELES, 634 S. Spring St., (14)
BOSTON, 10 Post Office Square (9)
CHICAGO, 208 So. La Salle St. (4)
of
add
to
Sales.
small
executive
field
staff
an
able
as¬
Vice-President-in-Charge-
but
and
preparing
fund
our
Applicant
individual
popularity,
in
to
now
be with
fund
lacking
may
trust
he
must be a sales
should have experience
sales
material
and contacting
in
trust
dealers and
salesmen. A real opportunity for the
right man. Salary commensurate with
experience, ability and results.
Re¬
plies will he held strictly confidential.
Address Dept. 8-B, Post Office Box
26,
Trinity Station, New York.
means
nual
operating
each
that
the
present an¬
charge of
for depreciation
by the amount
credit thereby rais¬
expense
company
would be reduced
of
the
51/2%
ing the
"earnings
return"
by
if
Thus,
in
the past, any government will be
denounced
fect,
a
available for
corresponding
amount.
•
course," in
nist
Sept. 1.
any
and
act.)
Of
bers of the New York Stock Ex¬
on
the
self-serving ag¬
government-defy¬
ing private interest. (The motives
of an Avery or a Lewis, however
lofty, do not alter the fact that
over
gression of
C. F. Henderson Co.
However, the best
job, from a selling presentation
standpoint, which has come to our
interest
a
is
company
now
earning the 614% rate permitted
by the Commission, Its rate of
return would be raised by
the
amount of
514% credit, thereby,
making itself subject to possible:
rate reductions.
for anarchistic
The theory on which the ma¬
freedom, fictitious
equality and sentimental justice. jority of the Commission bases its
The cult of "Superior Rights for Order is that depreciation belongs
Inferiors"
has
many
followers. to the consumer and the owners
Time-worn ideas of self-reliance, of the property are only entitled
self-support and se}f-discipline do to a service charge of 1% (6y2%4,
not
appeal to
a
multitude
of 5%%) for handling the reinvests
shirkers and leaners and borrow¬
ers
and
ballots
illiterates who
in
favor
cast their
of the
seductive
ment of
Order
tatives
of
and
worry
"Let somebody take care
today and let somebody else
lead astray a
host of weak-minded persons with
the claim that democracy should
bring to the
may
masses
an
become
of
the various
electric
irrespon-
The
effective
to
enter
water, gas
companies
before the Commission
about tomorrow."
Demagogues
to
Aug. 17, 1944, however, represen¬
program:
me
depreciation funds.
was
protests
and
appeared
on
Aug. 11
secured
a
30-day extension. Miss Agnes Mae
Wilson, one of the Commissioners,
questioned order's validity,
Volume 160
that conditions
Municipal News & Notes
North
Carolina
of
Governor^
Carolina's
North
fund
general
surplus, which stood at $57,648,870
on June 30, last, is likely to reach
$75,000,000 by the close of the cur¬
June 30, 1945,
Governor J. Melville Broughton
rent fiscal year, on
predicted recently. In discussing
surplus in relation to the
State's outstanding debt, Governor
Broughton said that the general
the
sentiment
ficient
is
set aside
to
offset
bonded
surplus to
general fund
State's
the
debt.
suf¬
a
This
debt, he said,
now
totals in principal amount
approximately $50,403,500, against
"which there is now a sinking fund
of
of State
agencies and institutions
where such need exists; supple¬
menting the program of State
services, including such new and
additional programs as service
returning veterans and a compre¬
hensive health and hospital pro¬
gram now being studied by a com¬
mission appointed for this pur¬
pose—tax reduction.
"The budget statement discloses
highway surplus of nearly $40,000,000. This is not in fact a sur¬
plus
but
merely
a
deferred
maintenance account.
Every dol¬
a
lar of this
amount—and more—is
$6,241,000.
needed immediately for
"It is regrettable/' the Gover¬
ments
declared, "that this general
nor
fund bonded indebtedness
not be
paid off while
hand
on
for such purpose.
bonds
have
is
money
However, the
callable
no
pro¬
system and would have been
used
already if materials had been
"It would
to
after the
sinking fund
this
for
purpose enough of the present
surplus in its invested form to
offset and be available for the
of
payment
j bonds.
for
the
rate,
the. general
fund
By this action, except
difference
this bonded
in
interest
indebtedness
will be in effect retired.
action will have
Such
definitely sta¬
bilizing effect upon the credit
and
financial
State.
a
standing
of
the
should
be
no
There
deviation from this
course.
edness thus
disposed of, the State
will be in
very
dition
with
bonded
satisfactory
respect
its
to
con¬
other
indebtedness, which
con¬
sists of highway bonds in a total
amount of $55,855,000, less the
sinking fund -of $13,400,195, or a
net highway indebtedness of $42,454,805. All highway bonds, pay¬
able in annual amounts and under
schedules
present
these bonds
pletely in
will
of
payment,
retired
be
seven years.
com¬
At the end
of that
period the State will have
outstanding bonded indebted¬
no
whatsoever."
ness
Continuing, Governor Brough¬
ton
noted
follows:
as
"If the suggested plan of utiliz¬
ing enough of the existing surplus
to offset the
general fund bonded
indebtedness
will remain
is
an
which
revenues
conditions will continue
followed, there
estimated surplus
ing work in 1947. There will be,
perhaps, 2Vz million persons in
the
Armed
that
2 V2
If
Forces.
million
is
a
war
is
There
over.
are
we grant
maximum
volume of
permissible unemploy¬
ment, we are faced with the need
for 53Vz million jobs.
This is 7
million more than in November,
peak of the war effort in
November, 1943. This suggests the
magnitude of the post-war em¬
ployment problem, particularly if
we recall two facts: (1) the vast
expansion of certain war indus¬
hundred
bly will therefore wisely refrain
gant
appropriations.
Carolina
is
on
unsurpassed by that of
in
the
North
financial basis
a
any
State
Union
American
and
equalled by few."
Halsey, Stuart & Others
Awarded Spokane Sch. Bonds
$3,400,000 building
Aug. 11 was award¬
ed to a syndicate headed by Hal¬
sey, Stuart & Co., Inc., Chicago,
bonds offered
chemicals
and
ployment
or
unemployment
not
But remember that 53%
jobs is a bed-rock min¬
imum
to
satisfy approximately
what we mean when we say that
there should be full employment.
The
to
the
worker
to
on
take
the part of
suitable
em¬
ployment, to go to the place where
work is
available, and to fit him¬
types of work that are
required in peacetime.
This goal cannot be translated
self
in
for
an
exact statistic.
enough
with
plan
We need
for
sued
flexibility
construction
retail
help
tion
to
as
rate
bankers regard
The
amount.
or
the bonds
as
to
the
labor
market
or
bad
being
our
help, however, to see
problem in terms of minimum
numbers.
Where do
we
stand to¬
day? Where have we come from?
In Apr., 1940 (which we can take
as a benchmark) there were about
54 million men and women in the
Due
11/2
labor force
wartime
the
to
Wz
women—about
24
do
Where
people
we
*
our
tion
and
even
less
than
we
to
set
our
a
growth of 6 million to
also
were
belief that we will have full em¬
ployment at the earliest moment
that it is technically possible. Let
me
repeat that—"The rapidity of
We
task if
we concern ourselves
exclusively
with reconversion.
Expansion is
reconversion and expansion."
will
not
accomplish
our
required.
It is implicit in
everything that I have said about
raising our sights. And since I
shall be talking next about the
also
problems of the transition back to
peace, I want to give a final word
of warning that we must during
that period expand the demand
for
employed
labor
that
so
53 to 55 million
there
will
be
jobs—not 51 as at
and shortages made
to
$3,400,000
-
do
need
the
in
But
we
to
visualize
post-war
63
These bonds
second
and
influences
fall
we
of
because
of
the
The
expansion.
m e
mate
smallest
dare think about
1947
of
war-
for
58.5
offered when,
may
be obtained in
any state
our
opinion, for Saving? Banks in New York State
an
election,
are to
be issued for capital
purposes,
all the taxable property therein without limitation as to
to
as
yield 0.55% to 1.20%, according to maturity
and if issued and received by
us
and subject
to
approval of legality by Messrs. Wood, Hoffman, King &
Spokane, whose opinions will be furnished upon delivery. The offering circular
in which this announcement is circulated
from only such of the undersigned as are registered dealers and are
offering these securities in compliance with the securities law in such state.
will
THE
HALSEY, STUART &, CO. Inc.
BLAIR &
C<$$NC.
>.
* •••■•
FIRST NATIONAL BANK OF CHICAGO
HEMPHILL, NOYES &, CO.
WILLIAM BLAIR &, COMPANY
FIRST OF MICHIGAN CORPORATION
MURPHEY, FAVRE & CO.
THE
MILWAUKEE COMPANY
DRUMHELLER, EHRLICHMAN COMPANY
I
MARTIN, BURNS &, CORBETT, INC.
Dated September 1,
vanish
without
leaving any trace. But let us say
-
1944. Principal and interest, March 1 and September 1, payable in Spokane or New York City. Coupon Bonds
The information contained herein has been carefully compiled from sources considered reliable, and
in the
highly improbable that ab¬
the
force
are
approxi¬
This is no
normal wartime influences on
labor
September 1, 1954,ior'ofrtany interest date thereafter)
would
million.
cast for 1947.
It is
on
Dauson, New York City, and Messrs. Burcham and Blair,
first because of population
number
1967, inclusive, subject to redemption in inverse numerical order
do need to visual¬
larger force than we had in
t i
to
and accrued interest
opinion of counsel will constitute valid and legally binding obli¬
Priced
labor
a
growth
% Bonds
It
1940,
ize
1
that many older work¬
not
million
K% and
1
rate or amount.
will wish to
greater than the number that pre¬
war
trends have led us to fore¬
resents
there
then
million
will
Serially September 1,1946 to 1967, inclusive
levied upon
taxes
have
figure. The unemployed had
decreased by 7 million, and the
Armed Forces had increased by
Our ability to ex¬
52
work.
approxima¬
closest
was
period
gations of Spokane County School District No. 81, payable from ad valorem
*
the
million.
and in the
million
ployment was above 51 million—
about 6 million above the Apr..
pand the labor force by 9 millions
explains much of the success of
our
war
mobilization.
This rep-
or
his
million
at
actually
were
1941
The rapidity of re¬
and expansion during
transitional
depend upon the firmness of our
Businessmen have never expe¬
'These Bonds, authorized at
have
retire, that many
women
will prefer to take
up
their work as homemakers, and
that we shall once again start to
raise the school-leaving age. Thus
ers
residual
10 Vz
much
as
some
&?Jst
of age and about
years
*
later (in Apr., 1944) the to¬
tal labor force had expanded by
over 9 million to 63 million.
Em¬
1940
it
53 to 55
conversion
the
rienced the kind of demand that
would result if
length
period two
years or so after the end of the
war with Japan, because it is with
respect to that period that we
can talk of the possibility of full
employment.
benchmark.
Legal investment, in
million over 35 years of age.
force.
year
at par
the so-called abnormal increment
including 45 V2 million
employed persons, about 8 mil¬
lion unemployed, and less than l/z
million in the Armed Forces. Four
labor force,
to
good
of
uses
*
at
(SPOKANE, WASHINGTON)
(Bonds due 1965
sights for the post-war period?
will
and
*
Spokane County School District No. 81
ing four years as a result of pop¬
ulation growth. Three million of
is certain
It
period
business
*-V'
talked
have
about the more distant
Rather he thinks back to
earlier
some
.
the
7 million over and above
growth
which
normally
might
have been expected to occur dur¬
to
retire from it.
I
raise
income.
organizations have
made forecasts with a good deal
of agreement as to the expected
level of employment in the postconversion
period.
These esti¬
mates range between 49 and 52
million in agricultural and nonagricultural employment two
years after the end of the war.
In other words the very best of
the expectations (52 million) runs
considerably under
the lowest
possible forecast of needed jobs
(53V2 million), and at least 3 mil¬
o u s
and
it after I have finished.
./'.yv;'
his business in terms of national
needed in 1947.
If he places the orders
banks in New York State.
system of freedom to choose
enter
cuss
manu¬
do
employ¬
full
get
mar¬
hand,
doesn't material¬
ize, he may lose his shirt. Do you
know the way out of this dilem¬
ma? I hope some of you will dis¬
...
can
the
on
full employment
the sights of the
community. You know
that your business depends on the
income
of
a
community.
The
average manufacturer has less ex¬
perience that involves thinking of
savings
for
investment
legal
under
a
trade
never
sees
orders
purposes
opinion of counsel will
constitute valid and legally bind¬
ing
obligations
of the
district
payable from ad valorem taxes
levied
upon
all of the taxable
property therein without limita¬
to
der
in
of
and in the
been
the labor that is available un¬
contraction
translate
meet
until he
terms
may
ment.
but
war
in
we
few
aggregate
individual
to
it impossible present; not 46 as before the war.
The transition to a peacetime
satisfy consumer demand.
In
economy
will be made in two
and the First National Bank of
part, buying power that year was
stages. There will be no signifi¬
Chicago, on their bid of 105.402,
being sopped up in rising prices.
cant
reconversion
before
Ger¬
for various interest rates, a net
lion under a reasonable forecast The first part of the post-war job
many is defeated. In total, muni¬
interest
cost
to
the
district
of of need.
Some of the estimates is to translate full employment
tions
employment will decline
about 1.2468%. The bonds mature
into income and that income into
run 3 million below this level.
(Continued on page 701)
apnually from 1946 to 1967 and
So the first thing I want to say consumer goods and services. We
are being re-offered by successful
group
at prices
to yield from
0.55% to 1.20%, according to ma¬
turity. The bonds are being is¬
to
use
ket
business
fluences of the war on the labor
i
the
in
facturing industries,
million
a r
the
offset
sights.
V
enough
the
needs
to
plans,
his orders
additional
likely to expand after the
be¬
hope that it may be pos¬
sible that all Of us may raise our
(Continued from page 683)
willingness
A
need to start asking what
that market,
into contracts for new plant ana
equipment.
If he waits to place
tries, and (2) that most nori-muni- workers would be absorbed in
tions industries except construc¬ furniture, textiles, leather goods,
tion have expanded rather than paper and similar industries. Em¬
contracted during the war.
ployment in such nonmanufacThe Bureau of Labor Statistics turing industries as construction,
finance and services - is
has not attempted to forecast em¬ trade,
Outlook For Employment
a
his
workers
industries.
thousand
for fundamental
assurance
businessman
steel,
machinery,
aircraft,
shipbuilding, non-ferrous metals
2%, iM%,
also
million
ever, we
kind of
will have to be moved out of iron
force, you had better think of 55
million
jobs as the minimum
from any unnecessary extrava¬
4
need
of many hundreds of thousands.
Once we have done that, how¬
and
of
The general assem¬
than
More
at the
a
expansion of equipment that will
in turn require the employment
our
current sighting, what does this
1940, 3 million above November, mean? It means a net movement
1941 (just prior to Pearl Harbor), of about 4 million out of manu¬
and 2 million more than reached facturing.
Actually, because of residual in¬
revenue.
will find
is that all of us need to
sights. At this writing
the
actual
expectations of the
business community do not add
up to anything like full employ¬
ment two years after the end of
the war with Japan.
y,:>.
If we arbitrarily take a figure
of 50 million jobs as an assumed
figure that, corresponds to our
seek¬
or
697,
you
raise
at work
already indications of declining
trends in certain classifications
The issue of
"With the general fund indebt¬
a
optimism
have been abnormally increased
by
allocated
blind
be
that
expect
war
are
cause we
Is to set aside in
specifically
our
available.
vision, and the only alternative
a
improve¬
high¬
and extensoin of
way
sufficient
than
more
can¬
to
to
such that only
are
million people
in the Armed Forces
or
The utilization of this
surplus would present to the gen¬
eral assembly three alternatives:
Expansion of plant and facilities
the
of
amount
58V2
at the end of this
$35,000,000
biennium.
Urges Provision Now For
General Debt Redemption
CHRONICLE
THE COMMERCIAL & FINANCIAL
Number 4308. >
denomination of $1,000.
while
not
guaranteed
August 17, 1944.
as to
completeness
or accuracy, we
believe it
to
be
correct as
of this date.
;
-f:
,
•
THE COMMERCIAL & FINANCIAL CHRONICLE
698
form
Will Bretton Woods Agreement
to
fixed
in
other
as
Revive The Gold Standard?
a
of
DIVIDEND
as
NOTICES
DIVIDEND NOTICES
On the
gold.
hand, the use of gold merely
common, denominator,
by
of which the relative val¬
means
ues
value
external
this
terms
Thursday, August 17, 1944
of national
being free to
A1IIS-CHAIMERS
currencies—these
change
—
are
MFG. CO.—
ex¬
NOW MAKING WAR PRODUCTS
(Continued from page 684)
pressed from time to time, is ob¬
clinging to silver as a monetary peace negotiations of the First
viously quite another matter."
base, sought means of
linking World War and whose book, "The
DIVIDEND
ON
In thus trying to reconcile his
Consequences of the
their domestic currency to gold. Economic
own opposition to the gold stand¬
COMMON STOCK
Great Britain, desirous of reestab¬ Peace," was read widely through¬
ard, and the system of fixing ex¬
lishing her position as an inter¬ out the world. The Keynes Plan
The directors of
Chrysler Corporation
by the so- change ratios of different coun¬
national financial center, made was soon followed
have declared a dividend cf
tries in terms of gold, as approved
seventycalled White Plan, whose author,
the serious error of restoring the
five cents ($.75) per share on the out¬
by the Bretton Woods Conference,
pound sterling to its old gold Harry D. White is an Assistant to Lord
standing
common
stock,
payable
Keynes apparently forgets
basis, thereby increasing the cost the Secretary of the Treasury.
September 14, 1944, to stockholders
that under any national currency
of its products sold abroad, and Both plans, accordingly, bear the
of record at the close of business
system, a sovereign nation is free
raising its domestic wage and stamp of official origin.
to alter the weight and fineness
August 21, 1944.
It is
unnecessary
to describe
price levels. Moreover, the gold
of its monetary unit, or otherwise
B. E. HUTCHINSON
cover of its currency was decid¬
here in detail the differences and
alter its value. It may even fix or
Similarities
of these
proposals.
Chairman, Finance Committee
edly inadequate.
<
alter from time to time, the ex¬
T
A further error was Committed They have been printed and thor¬
change ratio of its own currency
by British bankers and financiers oughly analyzed in the pages of
with that of other nations and
in their efforts to participate in "The Chronicle." But it will bear
The Garlock
rigidly control exchange opera¬
the financing of European recon¬ repetition to state the position oc¬
tions. Of course, if a nation ad¬
struction by placing large loans cupied by gold as an international
Packing Company
heres to an absolute gold standard,
abroad, particularly in Germany exchange medium in each.
August 15, 1944
it should not seek to interfere in
Lord Keynes proposed an in¬
and Austria. When these "recon¬
COMMON DIVIDEND No. 273
any way with a free market for
monetary
unit, the
structed" areas underwent serious ternational
gold as a commodity or to con¬ At a regular meeting of the Board of
commercial and banking disturb¬ value of which in gold may be
trol its movement by force, or to
Directors, held in Palmyra, n. y., this
ances following our own financial
changed when desired, but said
interrupt or impede the redemp¬ day, a dividend of 50£ per share was
panic of 1929, the Bank of Eng¬ nothing about the method of mak¬
tion of all forms of lawful money declared on the common stock of the
land was unable to maintain a ing such changes. The White Plan
into gold.
But, as Prof. Edwin W. Company, payable September 30, 1944,
sufficient gold reserve to meet the proposed a definite monetary unit
Kemmerer has pointed out in his to stockholders of record at the close of
heavy redemptions of its notes, of 1371/7 grains of fine gold,
testimony before the Foreign Re¬ business September 16, 1944.
largely because of the withdrawal equal to the amount of gold in
lations Committee of the House
R. M. Waples, Secretary
of foreign deposits.
On Sept. 20, ten U. S. dollars. The domestic
of Representatives, a gold stand¬
1931, the British Government gave currency of each country would
ard in practice does not assume
the order to cease specie payments be fixed in terms of gold, as a
absolute
freedom
from
govern¬
and again the world's center of ratio of this international unit,
Magma Copper Company
mental controls that »may affect
finance for more than a century and no
alteration of this ratio
Dividend No. 8S
the value of the metal.
was on a paper currency basis.
could be made unless approved
On August 16, 1944, a dividend of TwentyLord Keynes, perhaps, rejoices
The situation was greeted with by an overwhelming vote of the
five Cents (25c) per share was declared on the
that the International Monetary
a sort of rejoicing in British po¬
cooperating nations.
capital stock of Magma Copper Company, pay¬
Fund plan would permit a mem¬
able September 15, 1944, to stockholders of
litical and financial circles. Now,
Thus, - the United
States, as
ber
nation
to
change the gold record at the close of business August 29,1944.
the nation was freed from "the might be expected, is interested
II. E. DODGE, Treasurer.
parity of its currency to the ex¬
cross of gold," and Great Britain
in maintaining and strengthening
tent of 10%, and further, when
need not penalize her own busi¬ gold as a universal international
in the judgment of the governing
Ne win out Mining
nessmen
by restricting discounts exchange medium, whereas Great
in order to maintain the gold con¬ Britain,
though
acknowledging powers over the Fund, circum¬
Corporation
stances require a more drastic ad¬
Dividend No. 64
vertibility of her currency.
The the importance of gold for this
justment, it may be permitted. On August 15, 1944, a dividend of 37*4 cents
pound sterling could be "cheap¬ purpose, desires to weaken the
But this does not giye full free¬
ened"
so
that British products status of gold in effecting inter¬
A
those of other
depreciated currencies! "The relic
of barbarism,"
as Lord Keynes
characterized the gold standard,
was indeed, now merely a relic.
What happened in the years im¬
mediately following the abandon¬
ment of the gold standard by the
British is quite well known.
It
led to
a
sort of international
mon¬
etary chaos, which had serious
repercussions on our own fiscal
and
monetary policies.
national
ensued
currency
The inter¬
warfare which
settlements.
indicated
in the United Nations Agreement
at Bretton Woods, establishing an
International Monetary Fund and
an International Bank for Recon¬
struction and Development was a
national monetary
The final wind up, as
complete victory for
the United
States proposals.
It went even
further! Instead of creating a new
international
nation to lower
a
or
raise
to further its
expense
in
the
of
case
own
of
For, in addition to the other
re¬
changes in
unit, it gold parities of domestic curren¬
dollar, of its cies, it is provided by Article IV,
present weight and fineness, the
international money.
but
'Section
8
of
the
International
Monetary Fund Agreement that
"(a) the gold value of the Fund's
partly mollified
Was Great Britain opposed to
assets shall be maintained, not¬
by the truce involved in the Tri¬ this,
arrangement? In an address
partite Agreement of September, to the House of Lords on May 23, withstanding changes in the par
or
foreign exchange value of the
1936, when the second European
1944, Lord Keynes expressed sat¬
war
broke out.
currency of any member, and (b)
As has already
isfaction with,this new set up, but
whenever (i) the par value of a
been stated, a gold or any other
denied that it meant the adher¬
member's currency is reduced, or
metallic standard cannot be main¬
ence to a domestic gold standard.
(ii) the foreign exchange value
tained by a modern nation en¬
"There is no longer any need for
of a member's currency
has, in the
gaged in a serious and prolonged a new
fangled international mon¬
opinion of the Fund, depreciated
war, so any proposal or suggestion
etary unit," Lord Keynes main¬ to
a significant extent within the
to fix a metallic standard even
tained, but he still claimed that
member's territories, the member
for international
exchange pur¬ "the dog- that died, (i. e. his
shall pay to the Fund within a
poses
during
hostilities • would 'bancor'
unit) was a more thor¬
reasonable time an amount of its
seem
to be ruled out.
However, oughbred animal than has now
own currency equal to the reduc¬
as the prospects of the
defeat of come out from a mixed
marriage tion in the
gold value of its cur¬
Germany and her satellites be¬ of ideas."' </
came
more
rency held by the Fund."
evident,
farseeing
Regarding the effect on the
This
statesmen and economists
provision,
if
effective,
began British pound sterling of the ad¬
would act as a check against par
to look forward to a condition of
herence to a fixed weight of gold
value alterations that might other¬
peace
that would be free from
as the basic unit of value in the
wise be carried out independently
competitive currency wars and in¬ International
Fund, Lord Keynes
ternational
by a single country, when it may
trade
and
financial remarked:
for some reason, deem it advan¬
handicaps. It was recognized that
"The question which has re¬
this could be accomplished
only cently been given chief promi¬ tageous to itself to depreciate the
through an effective international nence is whether we are in a exchange value of its money.
cooperation agreement or organ¬
But, a still more significant pro¬
sense returning to the disabilities
vision, which
would
seem
to
ization, in which mutual rather of the former
gold standard, relief maintain
than individual
"gold on its throne,"
competitive ad¬ from
which
we
have
rightly
despite Lord Keynes' boast of its
vantage would be the primary learned to
prize so highly. If I
object. Since the major part of have
dethronement, is found in Article
any authority to pronounce
the
world's
V, Sec. 6, in which a member na¬
monetary
reserves
on
what is and what is not the
tion is required to buy gold from
was
concentrated in the United
essence and meaning of the gold
the Fund in exchange for its own
Stated and most of the leading
standard, I should say that this
currency. Under the first draft of
trading nations lacked an ade¬
plan is the exact opposite of it.
the United Nations Experts' Plan,
quate supply, it was of paramount
The plan, in its relation to gold is,
it was a moot question whether
importance that a mechanism be
indeed, very close to proposals
evolved which would not be
any nation wohld be required to
en¬
which I advocated in vain as the
tirely dependent on gold to assure
buy gold from the Fund, if. it
right alternative, when I was bit¬
international
exchange equilib¬ terly opposing this country's re¬ did not desire to do so. Certainly,
rium.
Great Britain and other pations
turn to gold.
The gold standard,
The first plan to be
that have abandoned the mainte¬
proposed as I understand it, means a sys¬
as
an
nance
of
international
gold reserves against
exchange tem under which the external
mechanism
or
currency
issues, would have, at
clearing
house value of a national
currency
is
emanated from Great
times, little use for this "sterile
Britain. It rigidly tied to a fixed
quantity of
became
known
as
the
Keynes gold, which can only honorably be commodity." Accordingly, it was
believed that the British delega¬
Plan, because of its author, Lord broken under
force majeure, and
Keynes, the prominent British it involves a financial
tion to the monetary conference
policy
was
business
and
British
official, who had
a
treasury
hand
in
which compels the internal value
the of the domestic
currency to con¬
would
should
insist
be
that
made
record
August
the
at
close
of
Transfer
1944,
18,
W. E.
August 2, 1914.
DIVIDEND NO.
•
61
yv
($0.25)
of twenty-five cents
A dividend
;
Secretary-Treasurer*
COMMON
_
HAWKINSOST,
.
share on the common stock, without
par value, of this Company has been de,- ■
chared, payable September 30, 1944, to
per
of
stockholders
business
record
September
the
at
mailed.
of
close
Transfer
1944.
8,
books will not be closed.
Checks will be
J
"
*
IIAWKTNSON, >
Secretary-Treasurer,
W.
E.
August 2, 1944'
Cyanamid
American
Company
dividend
preference
The Board of Directors of Ameri¬
can
Cyanamid Company
August
on
15, 1944, declared a quarterly divi¬
($.125) per share on
dend of 114%
the
outstanding
shares of
the 5%
Cumulative Preference Stock of the
Company, payable October 2, 1944
to the holders of such stock of rec¬
ord
close
the
a.
of
business
Sep¬
tember 9, 1944.
common dividend
The Board of Directors of Ameri¬
can
Cyanamid Company on August
15, 1944. declared a quarterly divi¬
dend of fifteen cents (15c) per share
on
outstanding
the
Class
of
the
the
"B" Common
Company,
October
payable
to the holders of
1944
2,
of
shares
and Class
"A"
Stock
business September 9,
such stock of record at the close of
1944.
W. P. STURTEVANT,
H. E. DODGE, Treasurer.
Secretary.
Tennessee
Corporation
r'<
UNHIMU CCBPOWATtOtf
A dividend of
the
provision
such, that
gold
THE BUCKEYE
per
30
stockholders of record
61
Broadway,
New
at
the close of
September 12, 1944.
York 6,
J. B. McGEE
Treasurer.
of
dividend
A
'
New York,
been
on
C. O.
the Fund
the
30
BROAD
STREET,
The
Board'of
Directors has
International
ence.
To
Monetary
the
countries that
Confer¬
<{Are all
question,
members of the
are
International Monetary Fund un¬
der
obligation to buy all gold
offered to them at a fixed price,,
the
published reply was:
out of
surplus of the Company, a dividend for
the three months ending September 30, 1944, of
and three quarters (1%%) per centum upon
the
issued
of
stock
owned
the
explicit
Preferred
outstanding
and
stock
Capital
Company,
other than Preferred
by the Company, payable October
1944, to holders (other than the Company), of
the Preferred Capital
stock of record on the
bocks of the Company at the close of business
2,
on
September 25.
Checks will be mailed.
1944.
G.
F.
It
desirable.
measures
GUNTHER,
may
Secretary
even
adopt
that will reduce the de¬
for
its exports in other
countries, although certain forms
of such measures can be adopted
only with the approval of the
Fund.
But in any case, so long
mand
as
"Despite the fact fhat there is
this day declared,
one
list of
"interpretations," which it
published and distributed at the
l'ORK
NEW
August 15, 1944
United
States, sup¬
undoubtedly by Russia,
having consideration for main¬
taining the value of their large
gold reserves, stood firm for the
compulsory gold purchase provi¬
sion.
The Treasury's attitude on
this point was made plain in its
BELL, Secretary,
CITY INVESTING COMPANY
should
be voluntary.
But,
ported
!
Twenty
declared
August 15, 1944.
purchases from
July 29, 1944.
(20) Cents per share
the capital stock without
par value of this Company, payable September
15, 1944 to shareholders of record at the close
of business August 18,
1944.
has
N. Y.
LINE
Street
Broad
.
to
business
PIPE
COMPANY
share has been
declared, payable September 28, 1944,
25$
.
economist
of
stockholders
books will not be closed. Checks will be
mailed.
-
tember 15, 1944 to stockholders of record at
the close of business August 28, 1944.
Britain fol¬
lowing the abandonment of the
gold standard in September, 1931.
strictions placed upon
per
happened
as
Great
on
Ser share was declared on the capital stock of
iewmont Mining Corporation, payable Sep¬
interests at the
others,
monetary
made the U. S. gold
basic
dom to
the value of its monetary unit to
suit its own economic designs or
($1.00)
dollar
one
the
preferred stock, $100.00
par value, of this Company has keen de¬
clared, payable September 5. 1944, to
-
could compete with
of
dividend
share
NO. 2
DIVIDEND
PREFERRED
there is
demand for its
a
cur¬
international
settle
to
rency
requiring
member countries toVbuy all gold
offered to them, it is our view
that Provision IX-2 implicitly re¬
quires member countries to buy
gold offered to thereby member
obligated to provide its currency
for gold.
*
*
"Also, it is clearly expected that
the Fund can replenish its supply
countries
of* the
no
cessary
provision
when
this
Jbecomes
ne¬
to prevent an appreciation
of the exchange beyond the range
established by the lund. Appro¬
transactions
member
on
current account, a
country
is
implicitly
currency of any member
country through the sale of gold
when this is necessary to provide
exchange
for
4.he
for
purposes
priate action to prevent exchange
which
transactions in its
sell exchange. Because the Fund's
mjarket in cur¬
rencies of other merijbers at rates
outside
the
prescribed
in¬
range
volves the acquisition of
gold of¬
fered by other member countries
or by the Fund.
the
is
Fund
authorized to
gold
holdings are regarded
liquid asset equivalent to
as
a
any
member
currency,
provision "is
made for the gradual replacement
of
local
by
currency
gold.
It
meipber country
can take steps to limit the demand
for its currency by the nationals
would be contrary to the purposes
of these provisions if gold were
of
countries
"Obviously
other
countries,-^and
in
this
minimize the import
of gold. It may, with the approval
way
of
it
a
the
can
Fund,
movements
restrict
when
the
capital
influx
foreign funds is regarded
as
of
un-
not
purchased freely by member
necessary
when
tion of the
Thus,
which
has
therefore
this
to prevent
an
becomes
apprecia¬
exchanges."
any
member
nation,
gold, and
particular use
"dethroned"
has
no
*
Volume
a currency
as
back¬
be required to hold large
and "sterile" amounts whether it
ing,
may
wants to
In this way, the
not.
or
vast U. S. holdings,
Knox,
be distributed through¬
world, and maintain its
may
the
out
buried at Fort
value, despite the gloomy predic¬
might
tions that its future worth
depend
its use as roofing ma¬
on
of
the
purchasing power of our
is stipulated by the inner
money
of
laws
We
It
is
quite evident that Russia
also
is
desirous of upholding the
,
status of gold in
international ex¬
change. Unlike the other United
Nations, Russia conducts its for¬
eign trade and foreign exchange
Social Sec, Essential
measures,
to
soundly extended
the slack when
voluntary effort fails. Some peo¬
ple fear compulsion as a menace
to our institutions, but the danger
is not in compulsion but in bu¬
gradually
should therefore attract
so
Thus, it is apparent that two
of
the
three
major
of
members
operations as a state monopoly. the International Monetary Fund,
It is, therefore, the only impor¬ whose combined votes will have
tant nation which may maintain a controlling force, are strongly in¬
domestic currency system com¬ terested in maintaining the status
pletely divorced from its exchange
of
status in other countries. In other
and
gold
to
dium.
policy is borne out in recent Rus¬
in
!
In
an
in the official So¬
viet magazine, "World Economy
and World Politics," and reprinted
translation in the
in
of
August
the
10th,
"Chronicle"
author
re¬
marks'
"When
talking
of
fate of gold, it must
its role
It
article by Y. Vintser, pub¬
lished recently
as a measure
the 'future'
be said that
of value will
should
during
of
United
of
distribution
the
world's
that
and
lism,
of
universal
system
of
they
were
but
own
eventually
struggle,
currency
gard to other functions of money
is quite another matter.
Gener¬
visions of
for
payment it only
of crisis, when
the machinery for credit breaks
down.
As treasure it played an
essential role between the two
a
means
in
comes
times
world wars, and
undoubtedly will
Continue to play it in the future.
Even earlier, gold as world money,
ag
Marx pointed out, did not so
much play the role of a means
of
as
that of
a
at the
learn
Trachtenberg, writing in the same
^Soviet official publication.
This
to be effective, to tariff reduction
on a multilateral scale, and to the
removal of all major barriers to
.
well
linked
was
and
only
but cannot dislodge gold from its
throne."' And
referring to the
means
the
and
employed
in
maintaining
stability of the Russian
rency
cur¬
under the present regime,
Russia's interest in
world
monetary
stabilization,
Mr.
Trachtenberg remarks:
"'"The
stability of our currency
exchange rate is guaranteed by
our
socialist
system
of economy,
not
to
domestic
sell and economic nation¬
The natural
world must be
of the
equitably shared. The foundation
of world peace and world govern¬
ment must be economic.
Upon
be erected
political asso¬
ciation of nations which Mr. Mac¬
agencies
these
cultural
that
may
and
Leish envisions,
"In
there are
protections,
which
addition,
We
a
circulate)
and
economy
work.
for an expanded
and use the vast produc¬
plan
cities
decent housing
must be provided. Health, sanita¬
Slums must be cleaned out;
must
be
rebuilt;
tion, adequate, medical and hos¬
pital care, and recreation must be
brought within the reach of all.
"We must learn to live fully
pound
(which did
For
through
only
exchange of domestic money
for
drafts
As
rency.
rangement
on
foreign
long
such
as
be
could
gold
currency
was
gold
basis,
were
held
and
in
internal
line
uncertain of our
ar¬
just
internal
substantially
with
as
as necessary
" V *
war.
ual
-
must
and
be
important
an
I continue to
case
stocks
mentioned
rec¬
holdings
here
two
and
break
"news"
A
zone.
*
often than not pre¬
r *
*
For those not familiar with
the issues recommended I
re¬
Bendix bought under
(now about 40V2) hold
peat:
shortly corrects itself 3SV2
more
with
a
stop at 35.
Lockheed
sents
buying opportunities; a bought at 17 (still available)
corrective or so called tech¬
stop at 15. U. S. Steel bought
seeks
that
setback
nical
to
at
under
58 Vz
(still
there)
equalize preced¬ with a stop at 55. The follow¬
ing excesses, and finally the ing got within fractions of
major break which means the buying areas: Bethlehem
overcome
or
end of the bull market.
Steel between 59 and 60 (now
6IV2). Latter is the only stock
is unimpor¬ which I re-recommend if
The second type may available.
Another
issue
first
The
tant.
lead to
one
spills in various stocks
which
looks
good
here is
Buy that
.
Crown Zellerbach.
as for war.
We
to join with other
providing those eco¬
nomic and political agencies nec¬
essary for a prosperous and peace¬
for
much
peace
must be willing
nations
in
ful world.
that
we
said
peace
have
would
was
could
not
go
through another destructive world
war, but this did not prove true.
We lacked the courage and vision
lasting peace. It is far
more
true today than after the
First World War that war must be
create
to
The
vive.
modern
a
between 18 and W/2 with
stop at 17 V2.
That
destructive
tell you
of
robots,
be about all for
which
More next
they
ones
*L
are.
*
Thursday.
Whyte
—Walter
[The
article
time
views
do
not
coincide
Chronicle.
expressed
in
this
necessarily at
with
They
sur¬
power
of
mechanisms,
will
If others appear before
week rolls around I'll
now.
be¬
it
war
civilization
cause
one
next
"After the last
those
are
any
of
the
presented
as
those of the author only.]
potential power of the atom,
the threat of virulent germs, the
the
the unsettleorganization¬
great that for
destruction of cities,
ment of the social
al!
of these are
so
the
LAMBORN & CO.
WALL
99
STREET
NEW YORK 5, N. Y.
SUGAR
Compared
NY Bank Stocks
Laird,
Meeds.
&
Bissell
City, mem¬
Broadway, New York
bers of the New
Exports—Imports—Futures
120
DIgby 4-2727
York Stock Ex¬
change, have issued a most inter¬
esting quarterly comparative an¬
alysis of 17 New York
Copies
stocks.
be
may
had
of
upon
City bank
analysis
this
Established
thing
as
vic¬
18S0
request from
H. Hentz & Co.
Laird, Bissell & Meeds.
Membert
Attractive Situations
Laclede-Christy Clay
common,
St.
offers
an
which
Louis
Products
is listed on
Stock
Exchange,
interesting situation, ac¬
cording to
a
•
New
York
Stock
York
Curb
Exchange
Cotton
'
Exchange
New
Exchange
New
York
Commodity \ Exchange,
Chicago
New
Orleans
And
Board
Cotton
other
of
Inc.
Trade
Exchange
Exchanget
memorandum issued
N. Y. Cotton
NEW
memorandum and also circular on
brings both individ¬ Bartgis Bros, and Federal Screw
security. We| Works may be obtained from
willing to sacrifice as Herzog & Co. upon request. . \
national
of
offing. That be¬
ommend retention of
ing
*
to plan for peace by Herzog & Co., 170 Broadway,
New York City.
Copies of this
tory unless it
values
external
•
confused and
directions. It is
"There is no such
a
on
The end of hostili¬
ties must not find us
maintained,
the value of the nation's
be
of war.
lems
cur¬
an
ing the
example reactions gen¬
which
the
even more
the
action of
in the
seen
cations.
difficult than the prob¬
must
effected
as
and
recently acquired and addi¬
interpreta¬ tions when as and if other
Their
erally fall into three classifi-
is coming nearer every
We
be
any signs
break in the
events, known
*
<
Co.
sors
could
long
so
tape and to the initiate weeks
ago get within the buy¬
speak volumes.
day.
prepared for the
problems of the peace which are
money," the circulating medium.
however,
looks
it
the
others do the same. Vic¬
tory against the German aggres¬
This
convertibility,
all
see
and help
"national
*
sit
that presents the fly in the
ointment and that is the ac¬
are
ing power released after the war
raise the standard of living
here
and
in
other
countries.
currency
the
tion is
on
preservation of civilization it¬
self, we must find a formula for
peace and the economic . and po¬
other litical guidance of the world."
to
established be¬
"gold peso"
must
*
Jobs must
be available for all who can
system
British
the
fixed ratio
a
and, in particular, by the monop¬
oly of foreign trade. The stability values.
as
resources
stabilization between the in¬
ternal currency and its external
value, the Argentine Government
in 1899 adopted the gold exchange
the
of
sorts
based
peoples buy as eliminated if civilization is to
alism. is abandoned.
a
tween
from gold the basis of a cur¬
Capitalism can
loosen the 'golden fetters,'
We cannot have a cooper¬
ative world unless
change irregularities, the business
of the
country suffered serious
handicaps. As a means of effect¬
whereby
the im¬
together for com¬
and some plan of or¬
quite as fundamental.
monetary
it
plan for an inter¬
provide
tuations and recurring foreign ex¬
authority holds that "it is impos¬
rency agreement.
the
ends
trade.
also
are
to some of the pro¬
related
sible to make the principle of divorce
as
because of the internal price fluc¬
a
as
ganization is essential. The two
agencies envisioned at Bretton
Woods lead inevitably, if they are
—
—
technical factors.
on
These
work
to
mon
terprise, combined with the free
international movement of capital,
in the form
of money,
credit,
goods and services, does not per¬
mit a nation permanently to have
one kind of money system for in¬
ternal transactions, and another
system for foreign transactions,
without fixing a relationship or
interconvertibility
between
the
two. Argentina's history furnishes
standard
rest
•
portant thing is that such agencies
be
created.
The
nations
must
in
ing
Any discussion of the mar¬
must, to be unbiased,
con¬
loans, and of the agency proposed
means
changes (and has already changed
more than once) in the historic
process, nevertheless the role of
gold in the monetary system of
the capitalistic world will be in¬
evitably maintained independent¬
ly of the money standards which
will be accepted after the war." The
policy expressed in the
foregoing except is reiterated by
another
Russian
economist,
I.
future
to stabilize the currency,
of an illustration of this. From 1885
settlement.
A number of present to 1899, Argentina operated on a
day schemes are aimed at bring¬ paper currency basis. At the same
ing this latter role to a minimum. time it carried on a large volume
both in
"In this way, although the sig- of international trade
However,
nificance of gold as money imports and exports.
purchase
serious
national bank which will
same time permit freedom
foreign trade and international
capital movements.
Past monetary experience has
proven that a system of free en¬
ally gold stopped being used for
monetary circulation inside in¬
dividual countries already from
the time of the 1914-1918 war. As
exploited and con¬
Woods, hopeful
economists
by the
of by
care
ket
v
•
"Bretton
purchasing
of foreign currencies, and
power
in Saudi Arabia
is, is but a beginning. While there
is controversy among bankers and
free from price ^fluctua¬
induced
tions
to
flict.
stable internal
gold reserves. The question con¬
cerning the role of gold with re¬
lead
will
in which
all
foreign trade and exchange
transactions are closely controlled
by the State, it would be impos¬
a
fair basis to
appropriate in¬
ternational agency. If a few great
nations divide up the basic nat¬
ural resources of the world, we
shall have an imperialistic uni¬
verse
and power politics which
Russia is today,
sible to maintain
are
Britain but by an
join with others in adopt¬
ing gold as their basic money.
Certainly, unless a nation is situ¬
as
a
on
world
by the United States and
trolled
and to
ated
be
not
must
the
of
Oil
nations.
all
the
to- abandon
riches
available
made
metal
two
"the
the
natural
bimetal¬
and to maintain their
domestic
four freedoms"
wealth, science, and
of
left
unless
up
by the Latin
Union), made' almost
frantic efforts to bring about the
restoration
a
There will be lit-
must be based.
jtle
the
(the
both
this
of coal, and iron, and oil—
it is upon just such things that an
enlightened and lasting peace
battle
France
make
not
must
we
one
you
that is limited to them I don't
peace
backed
forced
the
"the
to the warning of
MacLeish, renowned
librarian of Congress,
#
From where I
tion of the oils. But
unknown.
and
poet
Monetary
bases,
preciation of money) rests on the
role of gold as a measure of value.
This role of gold is also not in¬
fluenced either by the volume or
of
and
"Contrary
that
remembered
standards,"
States
latter
production of goods is main¬
tained. This role is quite inde¬
pendent of the existence or ab¬
sence of a gold standard or of gold
circulation.
Even inflation
(de¬
be
financing, and in
maintaining high
Archibald M.
decidedly, Yes.
the period
the
inevitably be maintained so long
as
is
Government
Federal
standards.
Britain, Germany and other
gold standard adherants?
answer
the
leadership,
creating
Great
The
rights as individuals
and enterprise as a
our
energy
of
ance
they were prac¬
tically forced to give up silver or
bimetallism, because of the un¬
yielding attitude and policies of
That will
do with the future.
We do not want
people, but we do need the assist¬
from 1870 to 1900
sian official utterances.
lose
our
For if
are
caught in the third stage
you're just out of luck.
column
itself.
or
the
course
of.
flatly observed that instead as if we had a combination of
of a reaction D-Day would
the first and second
stages to
likely mark the beginning of contend with. I rule the third
a substantial
rally. The rest is one out because there are no
history and while interesting stocks which look as if
they
and
naturally flattering to are
going through the cellar.
point back to, has nothing to There is one small
possibility
have to be taken
forts of all kinds.
nations of the world be
producer of the metal, it is also
desirous that its value be upheld
mid stabilized.
The attitude or
recall that this
ment, dwarfs the states, the local
communities
and voluntary
ef¬
an exchange medium
fostering the universal
restoration of the gold standard.
as
in
forced to
applied solely in effecting its pay¬
or receipts from abroad. again adopt gold as a backing for
Accordingly, Russia is primarily their internal medium of ex¬
interested in maintaining gold as change, just as during the period
exchange me¬
As the (country is a large
which
quite common.
will
separates the people from govern¬
ments
international
centralization
reaucratic
words, the value of Russia's in¬
What will be the ultimate effect
ternal currency can be maintained
of all this on future domestic.cur¬
or altered, regardless of its quota¬
tions abroad, or the balance-of- rencies, assuming the objects of
the International Monetary Fund
payments position of the country.
Its gold reserve, therefore, can be will be attained? Will the trading
an
and
take up
to
as
Readers
was
is of
one
be scared
to
(Continued from page 686)
market break would come
a
gives you the tipmajor trend. The
the
on
third
for
Beveridge Plan
must be based upon our philos¬
ophy of government and our way
of life. Social security should be
attention."
our
essential
are
American
"An
Any kind of
any
degree
might aid in solving the above
problems, including currency
which
more
true social security.
interested in the develop¬
are
Both
livable.
off
Savs
(Continued from page 685)
from want and make life
us
which often
Tomorrow's Markets
Walter Wfcyte
structure.
ment of world trade.
measure
terial.
economic
our
"Nevertheless, we are interested
in the stability of the .currencies
of foreign countries, both of those
to which we export
goods and
those from which we import them.
699
II!
1
T
for the metal
CHRONICLE
THE COMMERCIAL & FINANCIAL
Number 4308
160
CHICAGO
Exchange Bldg."
YORK 4,
N. Y.
DETROIT
PITTSBURGH
GENEVA,
SWITZERLAND
THE COMMERCIAL & FINANCIAL CHRONICLE-
700
Extend Franking
these foreign factors on prices are
Privilege
Aug. 1 that informa¬
received from the
on
has
been
Post "Office Department that
International Committee of
the
the
Red Cross in Geneva is being ap¬
pealed to more and more for aid
in reuniting members of families
scattered because of the war.
To
this
accomplish
must be taken to
end, measures
collect and cen¬
tralize information on the present
addresses of the scattered persons.
Indicating that for this purpose
the American Red Cross will dis¬
tribute through various
tions a correspondence
f
nouncement
organiza¬
card about
size, the an¬
5% by m inches in
Postmaster
r om
Goldman added:
"This card will be made avail¬
including evacu¬
ees,
in this' country who have
changed their address and wish to
make their present address known
to their relatives, whose address
they do not know themselves.
"When
the particulars called
for on the reverse side of the
cards have been filled
in, the
cards may be mailed free of post¬
age under Order No. 25467. These
correspondence cards,' and post¬
able to refugees,
cards
and
letters
mailed
by
the
American Red Cross to the Cen¬
tral
Agency of Prisoners of War
Switzerland, which
entitled to freedom of post¬
Geneva,
at
are
age
as
above stated,
must
bear
the notation 'Refugee Mail—Post¬
age
-
Free (See Order No. 254-37).'
above-mentioned
"The
to be received comfortably.
It is
inflationary.
:
During wartime many members
of the working force are engaged
in the production of goods which
to
not
are
usual
be
workers
goods
who
that
are
do
go
forts.
price
of
any
non-monopolistic
commodity reflects the interplay
of
the
by
or
the
supply, demand and monetary
affecting that commodity.
factors
is
Cotton
producing the
through the
channels of trade.
usual
in
consumed
by *them
sense
distinctly
workers who
produce war goods
in the same kind of
as those who produce con¬
consumed
States
of
25%
a
world's
the
about
cotton
about
Mr.
Hahn
asked
to
me
lead this
view of such human
the
market
it
might
sumptuous for
that
of
he
can
behavior
any
seem
to
one
measure
the
in
pre¬
claim
effects
price-riiaking factors.
The saving element lies
in the
offers interesting possibilities for
l^w of averages. Even though the
investment, according to a memo¬ great majority of all commodity
randum issued by C. E. Unterberg transactions
may be based purely
& Co., 61 Broadway, New York on
guesswork, the transactions of
City. Copies of this memorandum those who over-estimate tend to
outlining the situation may be had counterbalance the transactions of
upon request from C. E. Uuter- those who
under-estimate, leaving
berg & Co.
the trend of the market to be de¬
termined
by the
residual few
judgment represents care¬
ful appraisal of the price-deter¬
Speculative Appeal
"MOP" general 4s of 1975 offer mining factors.
;
V
interesting speculative potentiali¬
How prices are determined by
ties, according to a circular on the basic economic factors, Govern¬
whose
„
issued
by
McLaughlin,
ment
intervention and the minor
Baird & Reuss, One Wall St., New
York City, members of the New
York Stock Exchange.
Copies of
influence,
this Circular may be had from the
Demand Factors
Consumption in U. S.
Consumption outside U. S.
Domestic consumer purchasing
power
Monetary Factor
000,000
bales
Rate
.
of
change
change
"
'
of foreign ex-
•
Figures referring to U. S. and
foreign
production, stocks
and
Consumption are available in pub¬
lications of the U. S. Department
of Agriculture.
As a measure of
domestic
consumer
purchasing
power,
we
have
used
lower
bracket income, which is composed
of incomes below $3,000.
Statis¬
tical analysis indicates that the
most
significant price-determin¬
ant proves to be the domestic con¬
effect
A
Park,
f
detailed
Inc.,
study
is
of Fashion
contained
in
a
can
Federal
of
crease
in the
things
price,
a
same
.22% change in price
Still other
direction.
influence
our
calculated
so that further adjustments
have to be1 made according to the
paper,
rious feeds.
important
either
or
In each
national
some
have
income
income, and
production and stocks of the
modity.
been
payments
derivative of them
lower bracket
as
the most
case
variables
such
new
com¬
It would seem, therefore,
the
distribution
to
in¬
demand, and lately, Lend-
St., New York.
interesting study
\
I-
.
.
>
-r
v.
national
income
in
the other hand,
was at the rate of $113.7
billion
a year and is
currently at the rate
of $147.5 billion a year.
(4) During the last war and
on
afterwards Government control of
prices
not very effective and
was
prices
time
rose
the
sharply, whereas this
price level has risen
only moderately.
During the present
and
various
or
present
limitations
the
supplies
of the
commodities.
The
one
last
war
and
the
differ in several important re¬
spects:
.V
(1) At the beginning of the last
war
had rather full employ¬
we
ment
of both
at the
war
still
we
and machines,
beginning of this
men
whereas
had
several
million
unemployed and new plants rap¬
idly being built.
Although it is difficult to piece
together the entire World War I
picture because of lack of statis¬
on
the
Reserve
basis
of the
Board
new
Index
of
Federal
Produc¬
war
has
Board
the War
prohibited
restricted sharply certain civil¬
ian demands.
It has also placed
on inventory demand.
speculative demand has been
largely eliminated and potential
civilian consumption arising from
income, which would interfere
Thus
with
war
production,
prevented to
a
has been
great extent from
becoming a price factor.
i
In addition, the WPB has initi- *
ated increases in the supply of
materials to take
care
of increased
military demands.
ary controls plus
taxes
Wage and sal¬
excess
profits
have operated to retard ad¬
vances
in national income.
sequence
vances
A
con¬
has been that price ad¬
in
1943
were
small.
Our studies indicate that the ef¬
forts
of the
ministration
Office
have
unfruitful.
of
Price
largely
Ad¬
been
effects
Many of the
ceiling prices have been
to shift demand and price pressure
to competing commodities not un¬
der the same degree of control.
However, OPA has contributed
something to overall control of
prices by rationing certain goods
at retail and thereby limiting the
of
OPA
tion, 1935-39 —100, and was esti¬ demand for them and to a lesser
mated back beyond 1919 with the degree by placing ceiling prices
Foreign factors also have im¬ aid of the Day-Thomas Index. 0 on certain raw materials such as
On the other hand, the new copper, steel, leather and pulp.
portance. However, because crop
conditions, stockpiles and con¬ FRB Index of Production (1935- During the last war these com¬
sumption in different parts of the 1939 average = 100) was 176 in modities rose sharply in price be¬
world may change in opposite di- December,
1941.
This index cause of increased war demand
^etions.
wA^*ld
figures
on
reached a high of 247 in October- and the failure to curtail civilian
.
Copies of this with actual and rumored Govern¬ these variables show much more November.
1943, and has since de¬
may be had from ment policies. Yet it is clear that stability than our own domestic clined to 237.
all the Government's policies have figures.
request.
Therefore, the effects of
(3) National income increased
iwim
The
Production
1917, only 75 in 1918, and 75 in
1920.
This index was computed
to raise the
have included
level
1919.
with the future of national income
consumption and the weight ac¬
credited to production and con¬
sumption isdihdasured either di¬
rectly or indirectly through in¬
come.. r
■ j;
nsr-
attempts
that
billion
that discussion here might be con¬
cerned to a considerable degree
tics, there are fragmentary data
of the remaining factors. which approximate the conditions.
instance, a 1% change in the For instance, at the end of June,
crop has meant on the average 1917, not quite three months after
a
.75%
change in the opposite our entry into the war, unemploy¬
direction in the price of cotton. ment
among organized wage earn¬
A 1% change in U. S. stocks on ers in Massachusetts amounted to
the average has produced a .09% only 3.5%. On the other
hand, in
change in price in the opposite December, 1941, national unem¬
direction. The weight of this fac¬ ployment amounted to about 8%.
tor would have been larger if it
(2) During the last war pro¬
been
$46.4 billion in 1917 to $57
in 1918 and $62.9 billion
in
For
not
from
December, 1941,
lumber, rubber,
corn, eggs, barley and va¬
copper,
level
had
July 31)'
-
leather,
duction averaged 62 in 1913, 76 in
'special circular prepared by Si- Lease purchases.
The price of
mons, Linburn & Co., 25 Broad cotton, therefore, has often yaried
the firm upon
resulted in
Similar studies have been made
1935
■
August 1
with equally good results for such
commodities
as
wool, hides,
of
cotton
plan
income. A 1% change in the con¬
sumption rate has on the average
years
stocks is related to production and
acreage restriction, loans to induce
farmers not to market their crops,
stamp
cotton, domestic consumption only
has weight to the extent that it
has to supplement the effect of
1934-
1930
"trading"
so-called
following discussion of the price
price
Fashion Park Attractive
of "the
sents the net domestic demand for
1929-
{Crop
be illustrated by the
of cotton.
firm upon request.
bales
Stocks outside the United States
■
discussion, I told him I
sumer purchasing power, or lower
would choose the second approach.
bracket income, which is of course
Let us, therefore, examine in de¬
an
Available On Request
excellent measure of the po¬
tail the price-making process.
tential consumption of cotton and
Schenley Distillers Corporation
A "market" price is the net re¬
the prices which consumers are
have prepared an attractive book¬ sult of decisions of
many buyers
able to pay.
let containing the first articles and
sellers. Probably no two per¬
in the series they have been run¬ sons base their decisions on iden¬
Specifically, we found that a
ning in the "Financial Chronicle." tical principles. The same buyer 1% change in lower bracket in¬
Copies of this booklet may be had or seller may emphasize different come has produced a 1.1% change
in the price of cotton, other things
upon request by writing to Mark factors at
different times; some
being equal. Since lower bracket
Merit, in care of Schenley Distill¬ even
base
their
decisions
on
income to a large degree repre¬
ers
Corporation, 350 Fifth Ave., hunches arid misinformation.
In
situation
10
000,000
It is because of these excessive
When
Stock of the Public National
Bank & Trust Co. of New York
Itollar3
„
created.
'
Public National Attractive
140
and
before the
war
produced
45%, as compared to preAAA production of 55-66%.
In
sumers' goods. The war worker
view of the world-wide aspects
thus
receives
claims
for
con¬
of the cotton industry a proper
sumers' goods (money) which are
appraisal of the price at any given
on a
par with the claims, of the time should evaluate both foreign
producers of consumers'
goods. and domestic factors. With these
The total claims for goods thus
things in mind, the following data
increase substantially. If the pro¬
were subjected to analysis:
duction of war goods is consider¬
Supply Factors
ably greater than the usual sav¬
ings
of
the
public,
excessive
U. S. production
claims to goods (excessive pur¬
Foreign production
chasing power) are necessarily
Stocks in the United States
money
Billions of
just
paid
are
10
world
In prewar years the
commodity.
United
Yet the
cards will be treated claims to
goods' created by war
the same as postcards.
and the
pressures
built up' by
"Letters and cards mailed to ad¬
them and the Government con¬
dresses in this country by the
trols that the problem of the fu¬
Central Agency of Prisoners of
ture course of commodity prices
"War, Geneva, are entitled to free is
important today. There are at
postage in Switzerland and should least two
ways in which we could
be delivered without the collec¬
approach this problem. We could
tion of postal charges of any kind,
merely talk about it, each offer
unless marked for the collection
his own opinion and after some
of postage due by the Swiss serv¬
discussion go away with the com¬
ice.
bined opinion, which would still
"Also
all
cards
and
letters
be
only
an
opinion.
Another
mailed by the said Central Agency
method would be to try to deter¬
to addresses in this country and
mine
the
price-making factors,
all letters and postcards mailed
their
relative
importance
and
to the said Central Agency by the
probable trends, and on the basis
American Red Cross are exempt
of informed analysis and discus¬
from all postage charges.
sion reach more soundly based
"This postage free mail is not
conclusions.
entitled to registration nor to air¬
«««amm—
impor¬
an
1% change tant effect at such times as 1931
in the annual rate of foreign con¬ and 1933.
These
are
the
factors
and
sumption means on the average a
a
negate the Government's ef¬
Indeed, one can say that the
or
.
spondence
New York 1, N. Y.
The rate of change of
increased, as at present, a price aimed to rise price by changing
1.2% change in price in the same weights which are used to com¬
advance merely redistributes pro¬ either the supply or the demand
direction, and a 1% change in for¬ pute the calculated price of cotton.
duction.
or, as in 1933 and 1934, the value
eign stocks means on the average They are shown in the lower
When the national economy is of the dollar.
Political action,
a
.72%
change in the opposite panel of the chart.
operating at or near capacity, sup¬ while seeming to have made price
ply of a particular goods can be forecasting difficult, has actually
COTTON PRICE
increased only at the expense of provided many speculative oppor¬
AND
the supply of other goods.
tunities for those who have seri¬
While
RELATED FACTORS
a
price increase under such cir¬ ously studied the likely trends of
cumstances does tend to shut off supply and demand.
This is be¬
demand, the increase in price re¬ cause very often really important Cents
per
30
quired to bring about a balance foreseeable changes in demand
Pbund
between supply and demand is have sometimes operated to in¬
necessarily large. It is too large tensify and sometimes to nullify
corre¬
mail service."
foreign exchange has
though, for instance,
(Continued from first page)
Postmaster Albert Goldman an¬
tion
direction.
small coiripared to our own, even
The Probable Price Level
In International Mails
nounced
Thursday, August 17, 1944
demand.
In
ences
view of the
striking differ¬
in economic
characteristics
^
Volume
160
between World War I and
II
War
plan
a
it
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4308
point" that must be considered.
The personnel of the controlling
trol
has
been
variations
capable sub¬
ordinates who will be left in
pattern similar to that of World
A careful analysis of sup¬
War I.
ply (stocks and production), mili¬
tary demand during and after the
war
and
the
degree to which
civilian demand has been restrict¬
ed by WPB controls will be re¬
quired before conclusions may be
who
fessors
are
on
of
leave
ab¬
should
here
•
,
demand
will
war
higher
prices
nied.
their
if
duction
begin to see the disappearance
markets, sales depart¬
can
sellers'
of
ments will recall their
requests are de¬
When
<
this
The
men.
happens, the people
Price
measured
by stocks, cost of pro¬
duction and monetary factors.
as
One
might expect that the new
production of raw materials would
alsb have an effect on the price
-
We have not used
level.
a
meas¬
of new production of raw
materials, because the production
of finished goods (productive ca¬
pacity or new orders whichever is
lower), production of raw mate¬
ure
rials
and
stocks
mathemati¬
are
can
be used.
1
Index
Price
that the
seen
is
within
current
5%
who made the rules will be back
quite a number of com¬
are today produced at a
in industry
vision
to raise ceiling pricey This
quicker adjustments
the economic levels determined
agency
or
elimination
of
controls.
They will be able to accomplish
to
revision
will
or
know
calculated
a
repeal because they
about
more
the
back¬
ground arid operation of the con¬
of
have
orders, productive capac¬
new
industrial
of
materials,
raw
modities not under the
an
gree
unemployed, and we might hold
3
to
million.
4
or
shall
we
it would
and
same
nation¬
Our
not be evenly
de-
1
|
long-term
measures
the
between
where.; In grand total we are not
likely to have more than 5 million
it
demand
and
people
particularly severe cut¬
unemployment prob¬
lem will arise from high percent¬
ages of unemployment in
some
war
centers, even while the la¬
bor market remains tight else¬
price pressure to competing com¬
•
that
index
shift
to
been
if
have been
or
ity of industry, an index of stocks
severe
spread out again.
I think
what I mean when I
backs.
operating under them level of such prices.
will result in
by income, demand and supply.
There is still another important
and
problem will be
relieved
only
distinguish
theoretical have been without OPA ceiling
This calcu¬ price controls. Our studies indi¬
loss
for
patriotic reasons, such and learning at first hand their lated level, which had tended to cate that efforts of the OPA have
As
after the
last lead or precede the actual level is largely been unfruitful.
Many of
stopping of production after the irksomeness.
war
will force
the
controlling war, these men will work for re¬ computed from a series composed the effects of OPA ceiling prices
Since
modities
re¬
wide unemployment situation and
local situations in which
there
price level
of where
be
to
you can see
'
1
From the chart shown it can be
have
will
in war production; (3) in
communities the unemploy¬
to
are
some
needed for civilian
are
be
can
cally related; any two of the three
Index.
Wholesale
ment
by new orders and finished
goods capacity—and of supply-
accompanying chart shows
BLS
the
meas¬
ured
of the Bureau of Labor Statistics
Wholesole
tained
The component parts are
thus indexes of demand—as
-
and will not hesitate to stop pro¬
released manpower because
mate¬
many
There
•
raw
rencies.
on
the usual price-niaking fac¬
sence that they must either return
r
is, however, one point of at once or resign. Most of the pro¬ tors:/income, our capacity to pro¬
duce materials at different cost
similarity that should be noted. fessors will go back to the security
the relation of present
When this war is over, price con¬ of the university jobs, as they did levels,
stocks
to - average
stocks,
the
trols, as after the last war, are after the last war.
A similar development can be probable external or gold value
likely to be much less effective
looked for with respect to the of the dollar, British pound and
than today.
When that point is
reached,1 industrialists who have sales department personnel. Once possibly the French franc.. With
regarded it as unpatriotic to stop civilian goods are again in sub¬ this in mind, I have made some
unprofitable production during the stantial production and industry calculations as to the likely level
reached.
of
plants that
production
centered
be
costs
production, and the rate
of change of the dollar with re¬
spect to principal
foreign cur¬
in
cussions
in
rials and
con¬
Washington.
One should
largely chosen
from the universities and the sales bear in mind, however, that time
departments of large industries. will be required both to achieve
When the war is over, the univer¬ adjustment of prices and eventual
sities will experience a tremen¬ elimination of controls.
In view of such likely develop¬
dous influx of students. To pro¬
vide the necessary teachers, the ments with respect to control bu¬
universities will advise their pro¬ reaus, it is important that the dis¬
post-war prices following
on
trols than their less
bureaus
World
dangerous to
be
may
of control.
it will
But
distributed,
face
for
need
the
that
so
a
of unemployment
compensation and the strongest
possible I employment
system
whereby individuals may prove
strong
from
system
of
high unemployment
Inciden¬
tally, businessmen in planning
production programs had better
watch employment and national
income figures rather than news¬
paper headlines.
The latter will
trace the declines, which will be
spectacular; they are likely tooverlook reemployment that oc¬
areas
the tighter markets.
to
.
...J,Lmm,, ii||ii|iiii|
,
IVice Index"ZZZZZZZZZZZZZZZZZZ"TZZZZZZZZZZZZZZZZZZ".
(1926
=
in
curs
smaller numbers.
.
In this connection you may
3
fActual
vs.
find
1;he BLS data helpful. * Current in¬
formation on employment by in¬
dustry and by area will be more
BLS WHOLESALE PRICES
Calculated
useful than
ever
before.
The BLS
publishes monthly em¬
ployment estimates industry by
industry, J estimates
which are
based upon voluntary monthly re¬
ports from about 150 thousand
employers and which are accurate
.
enough for most uses. ;•
The
Legend
for Wholesale
publishes,
also,
monthly indexes of changes in in¬
dustrial
employment
in
102
metropolitan cities and is assem¬
bling from every source the best
estimates that
are
available of
Prices
The wholesale
of demand,
price criterion measures the effect
supply and monetary factors. It is com¬
puted from
a
and
formula involving Potential Production
of foreign exchange, stocks, and a trend
slopes downward. >;i:a
'
index
which
;:'U.
BLS
employment in November, 1943,
May, 1944, in i85 war pro¬
duction centers as compared with
pre-war
employment
in
these
and
centers.
;;
(
;
data
These
release
for
available
Ratio
the latter part
some
employed
5,000 or more
the
are
areas
time
In each
of August.
of these 185 areas numbers
sons
be
will
probably
of per¬
increased
since 1940,
They
have
where
impact
the
production cutbacks are
likely to be most severe.
/
;
At the request of various state
of
war
agencies, the BLS is also compil¬
ing tabulations of employment by
industries from the 1939 and 1940
and setting up as
censuses
Legend for Ratio:
1 "1-LJ 1
1-Li
IJ"'' 'J 1 ''
nearly
comparable employment figures
by states and industries for Sep¬
tember, 1943, as are available. In
'
Ij
This line shoes the relative position that the •
-(-! clothing retail price index bears to wholesale
H prices. It indicates that since 1934 wholesale
prices have been rising more rapidly than clothing
the
fall
of
1943
many
industries
of war¬
reached their peak levels
prices
production.
This informa¬
grist for the retailers mill
because
wartime
expansion in
munitions industries implies post¬
war cutbacks in these industries,
and difficult readjustment prob¬
time
tion is
1935
off will be relative newcomers to
the labor force.
Outlook For Employment
deed
from
to
something
about
like 9^ million
the end of
9 million by
/this year, if the war with Ger¬
many
is still in progress. - The
situation today is one of specific
and limited labor shortages, espe¬
is
reduced
lem
increasingly difficult prob¬
of
bottlenecks—a
problem
that
is
an
made
more
difficult
as
males for
But
with
employment that has occurred to
date
reflects
cutbacks
and in¬
creased
whole,
when
the
war
is over, employment will be
reduced
sharply.
Precise esti¬
mates cannot be made yet.
Re¬
duction of at least 30%
and pos¬
productivity.
On
the sibly as much as 45% in muni¬
should expect to con¬ tions production have been indi¬
labor
the
Ger¬
many
for able-bodied
of 1945.
excess
force
million
are
at the
million by the
end of 1944 to 4%
summer
the
labor
6V2
from
shall in¬
In its effect on
this
market
at end
Thus
shall
decrease
of six months we
have aboutnthe same
ber in
num¬
the civiliantjabor force as
at the end of hostilities
with Ger¬
The wameconomy will of¬
less jobs.
of these people will
employment? At this time I
many.
fer
3 million
How many
you
hear somewhat conflict¬ cated.
This means that 3 to 4 find
ing stories: Stories of acute short¬ million people will come out of prefer not to offer my guess, but
age of manpower from those who the munitions industries — more to tell you where they may go.
are
faced with the necessity of than half of them in the first They will not go into mining,
tinue to
breaking bottlenecks of produc¬
tion; stories of displacement from
workers who have been subject¬
ed
to
displacement on short no¬
a more balanced story from
those who know that there is no
tice;
over-all
manpower
problem but
trade, in domestic service
self-employment. But un¬
less there is a much larger ex¬
pansion of employment than ap¬
pears probable in local govern¬
ment
employment,
the service
trades and financial institutions,
three
within
months
six
and
months
most
of them
of the end
hostilities with Germany.
of
In ad¬
dition, 300,000 to 500,000 would be
likely to come out of war-time
government employment.
A
high proportion of those laid
transportation or
after
the
to
of
public utilities
the
war
with
the
wartime expan¬
lems
and in
sions have been greatest.
manufacturing
and
for
rapidly
most
months.
the
In
the
in
the
expansion
It will rise
last.
be estimated to
last
first
six
six months
of durable
goods
Attractive Situations
Ward & Co.,
York
lars
120 Broadway, New
City, have prepared circu¬
several situations which
on
currently
offer
possi¬
attractive
bilities, the firm believes. Copies
of these circulars, on the follow¬
ing issues, may be had from
request.
Mont
Laboratories
& Co. upon
Du
:
Ward
;
"A"
Merchants
Distilling;
Crowellwithdrawals
Collier Publishing; P. R. Mallory;
from
the labor force may just
General
Instrument:
Long Bell*
about balance the discharges from
Lumber Co.; Great American In¬
the armed forces.
manufacture
and
With reference
to tjiis period I
dustries; Mid-Continent Airlines;
(1) we Massachusetts Power & Light $2
may be saved from a serious na¬
preferred; Majestic Radio; Magtion-wide
want
to say
because
three things:
unemployment problem
continued volume of
of
navpx
Corp.; Electrolux;
Purola-'
employment government expenditures and the tor; Brockway Motors; Mohawk
Moxie,
Scoville Mfg.;
industries is more likely large consumer demand of; the Rubber,
Germany.
in these
end
where
tion,
^civilian
workers interpret local and often
will be balanced by the demobil¬ account, there will be increasing
poorly planned cutbacks to mean ization of almost an equal num¬ unemployment
throughout the
that the war is over.
year that the war with Japan may
ber of veterans.
heavy and sometimes relatively
low-wage work. The decline of
cially
the
in
we
if
fortunate
be
workers
(Continued from page 697)
But
Actually
contract.
There
should
cer¬
tainly be expansion in construc-
period; (2) it will be almost im¬
Douglas Shoe; and
possible to achieve the full use of port Airlines.
American Ex¬
'
THE COMMERCIAL & FINANCIAL
702
This
Rep. Chas. S. Dewey's Views On
International Monetary Fund
(Continued from page 682)
little public under¬
be
to
seems
standing although it has a very
direct bearing upon our own pros¬
paid for by currencies of some¬
what
doubtful
the dollars
I
perity.
will
value
were
admit
of
all
until
exhausted.
probably
that
CHRONICLE
"purpose" expresses all our
but there are many
aspirations
the
them
that
believe
who
method
obtain
to
proper
differs
greatly from the agreements ar¬
rived at during the International
Monetary Conference, which, as I
have already stated, involve credit
and other risks disadvantageous
to the United States.
By other
risks I refer to lack of political
stability existing in many of the
Monetary have over-simplified the descrip¬ nations who may be our associ¬
tion of the operation and it is the
Fund and the International Bank
ates in the International Mone¬
for Reconstruction and Develop¬ hope of the proponents of the tary Fund.
Further, at the present
ment were tentatively agreed to at Fund that with the growth of in¬ time it has not been fully de¬
Bretton Woods by representatives ternational trade, the members of veloped that some of the inter¬
of 44 nations.
I say tentatively the Fund would trade between national policies of our associates
The*
International
agreed to, as our Congress as well
the Parliaments of the other
nations must give final approval.
In all of the discussions the point
was stressed that if the currencies
of the world were not stabilized
and the industries of foreign na¬
tions were not rehabilitated so
that
the
purchasing power of
their citizens will increase, the
United States with its great in¬
dustrial and agricultural equip¬
ment would be the chief sufferer.
Our factories would reduce opera¬
as
and
tions, men would lose jobs
agricultural prices decline.
Probably
these
dangers
are
exaggerated, but on the
other hand, none can gainsay the
desirability of an active world
trade, provided the credit and
much
risks
other
involved
not too
are
great.
From my study of the plans pro¬
,
one
another and the exclusive de¬
mand
for
the
di¬
would
dollar
minish.
This, however, is only
thinking
and there is
danger that the Fund might be
unable to carry on its operation
wishful
due
the
to
and
forced
be
which
exhaustion
to
the
case
of
dollars
liquidate,
in
States
United
would become the possessor of at
least 2 billion, 750 million dollars
of
foreign currencies for which it
little or no use, but in ex¬
change for which the American
taxpayers would have delivered to
the countries operating through
the Fund 2 billion, 750 million
dollars of real wealth, as
evi¬
denced by American machinery
had
commodities.
and
Another
feature
questionable
of the Fund.
According to the ac¬
cepted plan, vote control is closely
allied to the amount of the quota
participation by each nation in the
Fund. America's quota of 2 billion,
750 million dollars gives it 28%
of the
risks involved.
72%
It
is
quite obvious that at the
termination
of
the
currencies
the
have
war
of
nations,
extreme
suffered
some
of
who
devasta¬
tion, will have little or no value,
and in some of the larger nations,
owing to the tremendous burden
of war debt and expenditures, it
is problematical what the pur¬
chasing power of their currency
will be.
The
International
Monetary
Conference attempted to produce
a
plan by which every nation's
vote, while the remaining
is lodged in the control of
the countries which will do most
of the
borrowing from the Fund,
the ordinary decisions of
the Fund managers are approved
by merely a majority vote, it is
and
as
obvious that
a
would not have
we
large voice in
proceedings.
any
While I always try to keep an
this
solve
nomic
unusual
very
problem,
eco¬
International
an
Monetary Fund has been tenta¬
tively agreed upon by the 44 na¬
aid will be of doubtful assistance
billions
300
sake of
of
the
For
comparison I wish to
call that when
World
dollars.
War
we
in
re¬
entered the first
1917,
the
public
under
given
participation.
tion
these
public debt
was
dollars.
will,
The
of
quota
of
total
all
quotas
amounted to 8 billion 800 million
dollars,
of
which
United
the
States supplies 2 billion 750 mil¬
lion dollars.
To give a simple example of
how the fund would work, let us
take
the
example
of
Greece.
Greece was given a quota of 40
million dollars.
At the present
do not approve.
The
thought expressed
times
in
the
that the
would
Fund
so many
discussions
the
Conference,
at
the
benefits of
only be used to
achieve the purposes of the Fund
above referred to, seems to me to
be based on an international al¬
truism
that
has
been
never
evi¬
dent in the past
quality
of
in
and is a doubtful
international dealings
future.
the
is
It
almost
to believe that when the
the
war
safe
ter¬
governments of
the
nations, with which we might
be associated in the Fund, once
they had been established and be¬
44
the
come
actual
accepted repre¬
sentatives of their people, having
their own economic problems and
policies to consider, would not be
debt
qf
of
the
the
It
country
first
was
World
War
the
under 26 billion
I know, be of
interest for the public to learn
that as of June, 1944, the amount
of assistance under Lend Lease to
our
allies
Of
the
United
Nations
reached ZS^billions, or two billion
dollars hiOf e than the total public
debt
in'C^rod: by this country to
other
no
industrial
than
effect
markets
domestic
for
come,
a
the
number
of
principal
years
market
to
in
which such purchases can be made
and such credits extended is the
United
States.
Under
the
provi¬
sions of the Fund, with our small
voting
power,
say
to who
as
have little to
will receive such
we
credits, what the terms of repay¬
ment will be and, of course, de¬
spite the fact that
we
will be the
chief
provider, little thanks will
come
to us as all dealings will
have been made through an inter¬
national body.
As opposed to joining up with
any
international group at the
present time, it might be advis¬
able for the people's Congress to
consider
attempting to achieve
the high purposes of the Monetary
Conference but with
a
little
and
cause
u
in which
our
currency, but for the sake of ar¬
gument, the managers of the Fund
might assign a value of 1 cent to
the
Greek drachma.
Once the
Fund would be put into operation,
the
Greek?
to
come
year
Government
the
Fund
and
could
in
each
until its quota was exhausted
purchase one quarter of its quota
equivalent to 10 million dollars
of
any currency that it desired,
paying for it with one billion of
their drachma.
?
It is obvious that
time and for
at? the present
number
a
in the future the
of
years
principal market
in which any purchases
probably
can be made will be the American
dollars
to
market
for
chinery
quired.
or any
case
the
What
be
used
in
purchase of
our
ma¬
commodity it re¬
happened in the
of the Greeks would
happen
as
unanimously endorsed was
follows; "To facilitate the ex¬
pansion and balanced
international
tribute
trade
growth of
and
to
con¬
thereby to the promotion
the
world
and satisfy the same
sought to be accom¬
plished by the International Mon¬
etary Fund, providing adequate
be solved in a
can
been
devastated
and maintenance of high levels
domestic
financial
facilities
authorized
the
agents
limit of 50%
thereof, or to
in any one risk
limits
of
their
charter,
through,
of
notes, bonds or equity shares,
providing that in all such finan¬
operations the recipient na¬
tion should take steps looking to¬
ward the balancing of their fed¬
eral budget, and that in all cases
satis¬
manner
cial
ourselves and with a
fore-knowledge of what, if any,
our losses may be.
I recommend
for the consideration of the Con¬
factory to
the operations would be for sound
the latter method.
executive order, the Ex¬
port-Import Bank of Washington,
D. C., was incorporated in 1934
and from time to time its activ¬
ities have been increased as well
gress
economic
objectives.
large experience,
gained over eight years, the Ex¬
port-Import Bank can probably
better serve the public interest
as its loaning power.
During the than a new Fund as proposed in
early stages of its development its H. J. Res. 226; provided, however,
activities
related
almost
exclu¬ certain changes are made in its
sively to inter-American trade and charter, in its governing board
the development of resources of and through an enlargement of its
the
countries
of
the
Western sphere of action.
\
<
Hemisphere. It is, however, em¬
At the present time such policy
as may exist in regard to the fi¬
powered to operate anywhere in
the world.
In fact, its purposes are nancing of surpluses outside of the
somewhat similar to the purposes country, and the assistance of la¬
mentioned
at
the
International bor and management in develop¬
Conference at Bretton Woods; to ing ways and means for disposi^wit, "to make loans to any gov¬ tion of surplus production, are
ernments, their central banks or spread throughout many agencies
to any other acceptable banking and bureaus of the government.
institutions and when guaranteed
The financing of
our
foreign
By
*
In view of its
.
by any such government, a cen¬
tral bank or any other acceptable
active
operation of the ExportImport Bank it has had a turnover
billion, 275 millions of dollars,
has made a profit on its opera¬
of 1
tions and up to
date has suffered
It has financed the
loss.
no
ex¬
port of all types of machinery,
transportation equipment, the pro¬
duction of
raw
materials and the
of agricultural
sale
products.
It
trade is
tion
highly technical opera¬
requires special knowl¬
and experience, and > also
a
and
edge
there
will be arising during the
coming years matters of domestic
policy in the extension and de¬
velopment of oversea markets. If
the United States expects to keep
full employment it must also con¬
sider the disposition of the indus¬
and
agricultural surpluses
trial
that may develop, and this, as I
have already stated, requires for-,
ward-looking thought
as
will
I
believe
,
that the
time
legislative action
as
exists to advise the
one
up
until the outbreak of the war
of a
has assisted in the financing
small
able
percentage of our export¬
surpluses. The disposition of
these exportable
surpluses means
to American workmen and
stabilization of prices to American
or
under
deci¬
such
would be
as
ordinary
financial
institutions.
The Export-Import Bank has been
quietly rendering an important
service to labor and industry and
now
council whose duty it should be to
submit foreign trade policy
sions to
the Congress for
of
the
is
ripe for us to give consideration
to the setting up of one advisory
the private financial houses
country and has entered
fields of credit not covered by
with
they
be sold.
quired,
of
to whom
and under what credit terms
has done these things in harmony
rer
such authority
operations
Federal institution such
as
the Export-Import Bank in its fi¬
nancial dealings in the disposition
of
surpluses and such other inter¬
national operations as are collat¬
eral to our foreign trade.
; •
As
-
suggestion, I believe that
the Charter of the Export-Import
Bank should be changed to set up.
an advisory board of 12
positions,
a
of which
some
shall
be filled
by
jobs
members of the Government and
agriculture.
others, chosen for their technical
knowledge in the business world.
The position to be filled would be
At the
fund in which the interests of the
United States
ordinated
to
might become sub¬
those
of
the
other
associates.
On Feb. 1 last I offered House
have
any other govern¬
governments or any duly
or
the purchase assignment or resale
Joint Resolution 226 which set up
that
of
any
risk with
one
ment
in
are
tries
of
cooperation with private
capital the question of surpluses
that
of developed to handle Operations of
employment and real income and this magnitude.
and desire to rebuild themselves. to
On the other hand, should the
;.the development of the pro¬
As a result, there would be a con¬ ductive resources of all members Government of the United
States
stant demand for the United States as primary objectives of economic continue the
practice of buying up
dollar quota in the Fund, to be policy "
and holding such surpluses, they
in the case of all the other coun¬
50%
case
in any one nation with any indi¬
viduals or corporations within the
more
purposes
than
more
in the
or, two, as I have said,
develop
our
own
international
credit machinery to such a point
purpose
state
not
cost
severe,
quest
difficult to
the total
losses might be very
market; hence, the Greek Govern¬
ment more than likely would re¬
is most
participate in joint accoutn to the,
extent of
prices.
We have then, a choice to make
of the following: One, to join up
with
an
international
fund in
which we have little control and
present time the loaning
fight the first World War.
assurance that we,
too, would be
A public debt of 300 billions of
ability of the Export-Import Bank
included among those benefited.
is limited to 700 millions of dol¬
dollars even for as great a country
It
has been pretty
generally
lars and while it has been con¬
as our own is an incomprehensible
agreed that in order that we may
figure, but I believe that it can be service our public debt and pre¬ stantly expanding its operations,
particularly until the outbreak of
serviced
and
steadily reduced, vent
inflation, this country must
provided, first the financial pol¬ maintain a high national income the war and even since by the ex¬
tending of credit for the develop¬
icy of the Government follows a derived
by full production and full
ment of critical materials in for¬
course " of
economy and, second,
employment. Such a program has
eign lands needed in our domestic
that Government follows a policy
certain
dangers
attending
it; war
of full production by all phases
production, yet it has not
namely, the creation of surpluses, taken the
position in our over-all
of agriculture and industry, which
due to the high efficiency of our
will have the effect of maintaining
economy that it might well do.
labor, the ingenuity of our manu¬
a high national income.
I offer the suggestion that the
The suc¬ facturers and the development in
cess of such a policy must stem
agricultural production. On top Congress of the United States
from the people themselves, actu¬
of these for a number of years to give consideration at this time, as
ated by individual initiative and
a part of our reconversion
legis¬
come will rest certain
war
sur¬
desire for gain and not from a
pluses now owned by the Govern¬ lation, to the development and in¬
crease of activities of the Exportregimented,
bureaucratic
econ¬ ment.
Both1; these types of sur¬
omy.
pluses can b&f$j$posed of outside Import Bank as our method of
In the agreement reached at the the continental* United States and participation
in
world
recon¬
International
Monetary Confer¬ produce the same economic ben¬ struction, rather than becoming a
ence
at Bretton Woods a chief efits throughout the countries of partner in any great international
time it
what would be the value of Greek
and the by-laws of
Export-Import
Bank.
The
through the use
of the Reconstruction Fund could
board of directors
break in
banking institution, to a political
subdivision, agency or national
Fund unless the benefits far out¬ of any such government for the
weigh in value the surrender of purpose of assisting in the de¬
their own independent judgment. velopment of the resources, the
As has been stated, one of the stabilization of the economies, and
orderly
marketing
of the
principal purposes of the Inter¬ the
national Monetary Fund is to pro¬ products of the countries of the
mote and maintain high levels of Western Hemisphere."
employment and the development
I now
make you
a
startling
of productive resources through¬ statement.
In the eight years of
that
Conference
the
and
agricultural
production as no one would know
when they might appear on the
stifle
inclined to accept the dictation of
the
board of
governors of
the
to the
three billions and at the termina¬
a
financing of plans and pro¬
grams of government which we
out the world.
Such goals can
mind on the advantages of
only be achieved by selling many
providing assistance to the peoples devastated countries
productive
of other nations, there.are very
machinery and raw materials on
definite limits beyond which such
credit terms, but it is well known
tions attending the Conference,
Fund
each
nation
was
which
assist
or
the
open
recipient and will undoubt¬
currency would be given a pur¬ edly injure our own people.
This country will emerge from
chasing power related to gold or
the United States dollar of pres¬ the World War with a public debt
ent value and fineness. In order somewhere in the neighborhood of
to
either have to withdraw
minates
from the American point of view
is our control over the operations
posed at the International Mon¬
etary
Conference
at
Bretton
Woods, N. H., I have come to the
conclusion that any possible ben¬
efits to the economy of the United
States are far outweighed by the
be
compatible
with
thinking, and being a
member of the Fund, we would
not
may
American
have
could
Thursday, August 17, 1944
a
board of American directors to
supervise the operations of a cen¬
tral
reconstruction
had the
in
the
fund
which
as
follows;
*
1. LUbor.
2.
Agriculture.
3. Critical Materials
and without
-
—
within
the U.
S.
4. Surpluses — both industrial
and agricultural.
5. International
6.
policy (State
Department).
;
Geographic (world popula-'
tion movements and terri-
-
torial developments).
\ :
7. Political
Domestic
Policy
(representatives of Senate
and House of
Representa¬
tives).
-!
8. Domestic Finance
V
(Treasury
Department).
9. Advertising
and
Services
(The time will come when
American goods in a high¬
ly competitive market will
be sold on quality and ser¬
vicing).
10. Transportation (by sea). *
11. Transportation (by air).
12. Financing of Foreign Trade
(civilian of broad foreign
trade experience).
-
The charter of the Bank would
further
provide
for
a
technical
purposes as set forth board of directors composed of
International
Monetary- government employees who will
same
iVolume 160
view of stimulating our own
operations
executive
the
tiversee
of the bank in line with the gen¬
vate
eral recommendations of the Ad¬
trade.
visory
■;,-y'
In
Board.
.
.,
Calendar Of New Security
above
reached, the Bank is empowered
to sell additional stock to the Re-
foreign
NEW FILINGS
wealth
power
re-establishing
of
of
the
SEC.
I
der certain conditions the Export-
that
Import Bank
his
cooperate with
can
private capital in its financial un¬
dertakings, > the
new
Charter
should definitely provide for as¬
sistance along
this line with a
the
(par
it
seems
than
from
if
as
have
still
we
time to anticipate.
redemption price of $110 per
share plus accrued dividends.
The cost of
these
two transactions is placed
at $3,-
company.
lic,
•>
fund
will
be
of
amendment.-
talking
is
press
uncertainties under consideration.
already
of lend-lease to Britain
SATURDAY, AUG. 19
filed
Shares
amount .of refund
Proceeds—To
"Our
profits.
porate
However, the
present official thought
trend
"There
•
those
are
of
offers
When and What to Buy
assurance of post-war elim¬
think
who
they see a good short-term buy¬
ing level but feel that expecting
the
market
to
months from
ask.
Our
should
.
done
No
to
buying
the
attractive
an
ope
whether
advance
six
much
whenever
at
seems
buying point.
be
higher
is too
opinion is that
be
market
be
now
tell in
can
what
seems
to
trading purchase will change
into a profitable long-pull invest¬
ment.
Delayed purchasing until
everything seems ideal often
means
paying premiums.
Indi¬
vidual issties which, in our opin¬
ion, are worth investigating as
purchases for various reasons in¬
clude Amarada,' Westinghouse
Electric, 'Johns-Manville,
Monsanto, International Harvester,
General
Motors,
Pepsi-Cola,
Montgomery Ward, Atlantic Re¬
fining,
Columbia
Broadcasting,
a
United
Aircraft,
International
Republic
Paper,
profits taxes.
Such relief would greatly improve
ton
corporate earning and
dividend paying • abilityv and be
particularly beneficial to
com¬
panies which 'will resist declines
in pre-tax net and at the same
time enjoy substantial tax savings
with resultant higher per-share
earnings. A measure of the ad¬
vantage to bb>i gained from elim¬
ination of this; burden is implicit
Steel,
Rayonier,
'*
.
thk
representative
section of industry paid out,
the fact
cross
taxes
Federal
in
a
64% of pre-tax net
before provi¬
This
with|a 40 % tax remain¬
compares
if
ing
some
post-war refunds.
for
sion
1943,
for
excess;
eliminated.
S
profits
taxes are
"Following is a selected group
of stocks which are, in our
opin¬
ion, at attractive levels for pur¬
chase
those
by
seek issues
who
possible savings from elim¬
with
of
ination
excess
profts tax suf¬
ficient to exceed declines
tax net income
duced
in
pre¬
resulting from re¬
spending.".
war
•
1943
Pre-Tax
Rubber
~
—Theoretical Deferred Demand
Pre-Tax
'(%)
(Mil)
*
194:
Pre-Tax Fed. Inc.
1943
Nel
Div.
Net
(Per- share)*
.
(Mil) U, (Mil)
$29.0"S$11.5
$44.4
74
74.8
72
Chemical
15.4
10.1
71'
3.56
2.25
Roebuck. .*...
86.0
;. 52.2
61
5.81
4.25
55.1
32.5
59
4.32
3.25
17.2
10.0
59
5.27
2.25
15.0
8.3*
59
5.16
2.65
11.3
58
2.64
1.80
12.8
5.1
9.9
58
2.60
1.00
10.5
4.2
36.5
20.8
57
2.42
1.60
27.0 ;
14.8
8.0
54
3.31
2.25
19.0C:|
4.11.0
7.5
Westinghouse * Elec.
"
Monsanto
6ears
American
Tobacco..
Johns-Manville
Amer.
(Per Share)
$7.00
75
4.5'
7.6
$5.0!
$1.00
'
Home
Columbia
Philco
....
Prod..
Broad.
..
General
14.0
Poods
.....
Pepsi-Cola*
•
13.1
I.
i
' ■
48
-^*
85.0
.
43.0
.*&•
V
34.0
8.75
125
53.0
.
•/"'
21.0
6.50
100
71
6.0
10.50
160
97
6.75
100
70
4.50
50
32
4.50
50
33
3.00
60
43
6.00
90
55
'
17.0
Corp
Price
15.0
4.00
I
Levels
y'-- Recent
Tax®40% Earns. Price
104.0
$59.8
Co.
17.0
8.25
150
103
6.0
6.50
130
84
.
94
•
.,
♦Figures
for 1942 year.
y&f.
with
Interesting Situation
H.
San
R. Baker
Co.,-Russ Bldg.,
a
bright future and offers in¬
possibilities,
teresting
Sierra
Pacific
this
report
interesting
report
Power
Co.
be
may
Square,
Boston, Mass* Copies of
this cir¬
on
Copies
had from
Co.,
upon
cular
Portland
Cement
low-priced stock in
an
is
a
industry
on
had from Lerner
ic
request and also a cir¬
will
will
underwriters
Filed Aug.
be
filed
*
series du§
the
•
has
CORPORATION
ARTLOOM
.
filed
out¬
standing cement stock with a div¬
idend arrearage.
•
lines
stock
common
(no
given the right to subscribe to the new
stock at $5 per share in the ratio
one
share for each two
shares then
be
common
of
entire net
the
Almost
held.
used to retire
be
stock
which
it
approximately
added
be
is
Jan.
proceeds will
the company's preferred
estimated will require
filed
CO.
has
for
BOLT
stock
141,054
CARRIER CORP. has filed a
for
70,000 shares of
registration
cumulative
preferred stock (par $50).
Part of the
proceeds will be applied to the retirement
of
$1,558,000
10-year 4% %
convertible
sinking fund debentures.
Balance will be
available for expenditures on plant or for
other corporate purposes.
Of the 70,000
shares registered, ,66,506 are being offereq
by the corporation to the holders of its
common
stock for subscription pro rata
at the rate of 16 shares of preferred for
each 100 shares of common stock held of
record at the close of business Aug. 18,
1944.
Subscription warrants will be exer¬
cisable beginning Aug. 19, 1944, and will
expire at the close of business Aug. 25,
1944..
The
underwriters are offering to
of the corporation at a price
to be filed by amendment any shares not
subscribed for by the holders of common
stock or otherwise purchased by the un¬
the employees
to
remaining shares will be
to be filed
Any
the public at a price
The principal underwrit¬
ers are Harriman Ripley & Co.; Inc.,
and
Hemphill, Noyes & Co., both of New York.
amendment.
Filed
Aug. 2, 1944.
Aug.
10, 1944.
.
Details in "Chronicle,"
•• •'
.■■■•
\,;V
'.-V'T."-
.:
WEDNESDAY, AUG. 23
NATIONAL
filed
a
shares
$100)«
CYLINDER
GAS
CO.
has
statement for 35,000
preferred stock (par
Proceeds will be added to the cash
registration
of
cumulative
net
Service
has
CO.
Power
to
proceeds
preferred
the
stock,
be
&
re¬
$100,
par
expects
company
101%
at
,
BOND
has
for
March
due
at
to
sell
con¬
of
$10,044,900
March
first
owned
by
bonds
Empire.
.
companies
constituent
by it in exchange for an
aggregate
shares of common stock, $10
Empire District Electric Co..
Both the bonds and stock will be offered
350,000
for
■
the
of
par,
Boston,
Street,
the
of
securities
of
•'
assumed
by Cities Service Power & Light
proposes
to acquire by merger the
properties of Ozark Utilities Co., Lawrence
County Water, Light & Cold Storage Co.
and Benton County Utilities Corp.
In con¬
junction with this merger Cities Service
Power & Light Co. is surrendering all the
TRUST OF
registration state¬
shares of beneficial in-
v
1952,
1,
Co.
a
"<
series,
trolled
filed
Federal
5%
and to the redemption
first mortgage sinking fund 5%
due
INVESTMENT
60,000
1952,
of $851,200 of Ozark Power & Light
105
Co.
Co.,
1,
bidding under the Com¬
competitive bidding rule U-50.;
will be filed by
competitive
mission's
'
Names of the underwriters
Whiting, Weeks & Stubbs, Boston,
Offering—At market.
Proceeds—For investment.
underwriter
f „/
in
Registration Statement No. 2-5446. Form
S-5. (8-11-44).
has
Underwriting
Principal
—
"Chronicle,"
filed
are
Net
ARDEN
shares
FARMS
of
$3
the
share
ATHEY
lative
CO. has registered 35,cumulative and partici¬
POWER
rate
will
a
regis¬
shares cumu¬
(par $100).
The
supplied by amend¬
preferred at $110 per share $3,163,820}
redemption of 5,940 shares of 7% cumula¬
tive preferred at $52.50 per share $311,850;
donation to Georgia Power & Light Co. to
be used for redemption of certain of its
tive
securities as provided in recap
$1,400,000;
company
Gas
Electric
&
Corp.
payment
plan of that
to General
of
for 4,200 shares
preferred of Georgia Power & Light Co.
and expenses $80,000, total $5,031,270.
Stock is to be offered for sale by
the
company
pursuant to Commission's
competitive bidding Rule U-50, and names
of underwriters will be filed by post-effec¬
tive amendment. The succesful bidder will
name
the
dividend
rate
on
the stock.
$6
$75,600,
21, 1944. Details in
Filed July
"Chronicle,'*
July 27, 1944.
Details in "Chronicle," Aug.
GERMANTOWN
ELECTRIC CO. has filed
statement for $10,000,000
first mortgage bonds, series due 1974. In¬
terest rate will be supplied by post-effec¬
tive amendment.
Price to the public will
be
filed
by
post-effective
amendment.
Company is a subsidiary of National Power
& Light Co. which is the sole owner of the
545,610 shares of its outstanding common
stock.
The net proceeds,
together with
such
additional
cash
from
its
general
funds as may be required, will be used for
the redemption, at 101 and accrued inter¬
est, of all of the company's first and re¬
funding mortgage gold bonds, 4 V2 % series
due
1968,
outstanding in
the principal
amount of $10,000,000.
The bonds will be
offered by
the company for competitive
sale pursuant to the Commission's xomBIRMINGHAM
registration
■
be
filed
40,000
stock
tent required, are to be applied as follows:
Redemption of 28,762 shares 7% cumula¬
filed a
r 11;.
CORP.
for
statement
Net proceds from the sale of the
preferred stock, together with addi¬
tional funds from the treasury to the ex¬
for
■
Mutual
new
new
•
Lumbermens
to
ment.
registration statement for 71,590 shares of
stock (par $4).
The shares are
issued and outstanding and do not repre¬
sent
new
financing
by
the
company.
Brailsford & Co., and C. O. Kalman, Paul
R. Doels and Edwin White are considered
to
be the
principal underwriters.
Filed
a
31,
for investment.
Filed May
Details In "Chronicle," June 8,
preferred
dividend
common
July 27, 1944.
3, 1944.
May
to company's
Unsubscribed
Co,
FLORIDA
TRUSS WHEEL CO. has
record
1944.
preferred at the rate
each iVz shares held
at $45 per share.
Company proposes to
sell
to the
public any shares not sub¬
scribed.
Net proceeds will be used to im¬
prove the cash and working capital posi¬
tions of the company and to the acquisi¬
tion of additional plants.
No underwriters
named.
Filed June 21, 1944.
Details in
"Chronicle," June 29, 1944.
of
one
and
1944.
29,
whose
deter
pating preferred stock, without par value.
Company has offered
to holders of its
preferred stock rights to subscribe for
shares
of
will be added
surplus funds.
will be sold
shares
Casualty
tration
714
OF AMERICA
registration statement for 48,of
capital
stock
(par $5).
to be offered for subscription to
proceeds
capital
a list of Issues
statements were filed
days or more ago, bnt
offering dates have not been
mined or are unknown to ns.
Details
1944.
1944, on a pro rata basis at $8 per share.
below
twenty
1,
6,
stockholders
present
OF OFFERINO
UNDETERMINED
present
a
shares
1944,
July
July
INSURANCE CO.
EXCESS
981
DATES
whose registration
Filed
amendment.
Shares
;
of
.
MONDAY, AUG. 21
by
-Securities
Business—Investment trust.
total
the
Cities
of
The
demption
shares. and Loewi.J& .Co.,
Address —49
of
Details in "Chronicle," Aug.
1944.
offered
or
19,498 shares.
Mass.
to
derwriters.
on
WEDNESDAY, AUG. 30
THE
AMERICA
regis¬
shares
Of
$1).
(par
a
be sold for account of the
company and 62,220 for account of certain
stockholders.
Company's proceeds will be
used to augment working capital and for
other
corporate purposes.
Van Alstyne,
Noel & Co., New York, head list of under¬
writers. Others will be supplied by amend¬
ment.
Price to public $6 per share.
Filed
statement
retire
$470,235.
Any balance will
working capital of the
statement
are
and
1945,
.
We
78,834
redeem
'
'
,
ELECTRIC
temporaneously with the issue and sale of
the bonds
are
to be
applied to the re¬
Registration Statement No. 2-5445. Form
(8-9-44),
•
'>
^
Aug. 10, 1944.
common
.
S-2.
Stroud & Co. are underwriters.
Filed Aug. 1, 1944.
Details in "Chronicle,"
tration
1,
19,498
Milwaukee,
company.
BUFFALO
1944.
24,
1944.
Aug. 3,
by
cumulative
the
to
July
DISTRICT
Co.
which
<
Chicago,
statement
common
business
of
a
for 100,000 shares
par)!
Holders of
stock of record Aug. 4, 1944, will
registration
Filed
Empire District Electric Co. which is con¬
ment
of
Co.
sisting of 838 shares.
Underwriting — Straus
amendment.
by
the
Service
mortgage and refunding bonds,
Details in "Chronicle,"
1, 1944.
Cities
at 103, plus accrued
5% first mortgage sink¬
ing fund bonds and at 105% of par value,
plus accrued dividends, all of outstanding
7%
cumulative first preferred stock con¬
under
sold
be
10, 1944.
Aug.
Riverside Cement class A
which the firm believes is an
Bright Possibilities
Giant
10
cular may be
Co.
the firm upon request.
Host
Office
&
an
according
prepared by Lerner
to a circular
Francisco, Calif., have avail¬
able
of
&
5%
gold bonds,
bonds
The
from
Empire District from the sale
of the bonds, together with the net pro¬
ceeds from the sale of 6,500 shares of 5%
interest, $300,000
competitive bidding rule of the Securities
and Exchange Commission and names of
10, 1944.
of
&EPT.,.Net
(Mil)
S.
gether? With such additional ^cash from
general funds as may be required, will be
used to redeem at 102 ^ the $15,000,000
mortgage
acquisition of
Danbury & Bethel Gas &
"Chronicle,"
account
ceived
professional furni¬
steel
.
Proceeds—to
before
has
registration statement for $12,COO,mortgage bonds series due 1974.
from the sale of the bonds
$2,000,000 of promissory notes,
to¬
1957.
Rivers,
Two
Offering—Price to the public to be filed
&~E.P.T.
-
Inc.
Net
'
TJ.
•
1943
Street,
ture and equipment etc.
proceeds
first
be used
to
are
Co.,
Light
in
the
un¬
an
common
a
Light
18th
wood and
include
first
and
with
the
has
of
first
the
■■■■
Wis.
SUNDAY, AUG. 20
Net
CO. has
of
(par $10).
a
000
of
CORP.
shares
of
registration statement for $10,600,mortgage bonds, 3
series due
1969, and 350,000 shares of common stock
(par $10).
The shares of stock are issued
and outstanding and are being offered for
registration statement for 38,996
preferential participating stock
a
shares
refund
MISSISSIPPI POWER & LIGHT CO.
issues
company
for
statement
Proceeds
par).
EMPIRE
by amendment.
filed
the
by
ELECTRIC
&
Light
&
Power
000
HAMILTON MANUFACTURING
filed
Francisco.
San
10
Aug.
Both
1969.
sale
number
connection
filed
Business—Established
Aug. 1,
Income
■'*
in
due
for
GAS
(no
Details
(8-8-44).
Address—1316
outstanding
SEC
sinking
amendment.
Electric
MONDAY, AUG. 28
Registration Statement No. 2-5436. Form
S-l.
(7-31-44).
Statement originally filed
.
Oil, Radio, American Water
.
excess
general
jEngineers r Public ; Service, Hous¬
Works.
of
ination
in
S-2.
credits.
reduce
de¬
com¬
Registration Statement No. 2-5444. Form
credits.
present tax needs severely
restrict
potential rewards from
through ordinary commercial the use of venture capital by rea¬
channels here and added to the son of the drastic taxation of cor¬
domestic deferred expenditures.
($50 par)
and
securities
million bushel head house.
has
5,520
:,y Address—-Seattle, Wash.
Business—Cooperative wholesale grocery.
Underwriting—No underwriter.
Offering—In exchange for refund credits
held
by members of the Association on
basis
of
14
shares
for
$700
principal
ation.
The funds advanced by our Gov¬
ernment will probably be spent
for
statement
capital stock,
registration
a
in
a
three
bushel elevator, with a
million
one
CO-OP
GROCERS
to
open
with
filed
registration
a
stock
of
construction of
and the
and
bonds
of $30,000,fund bonds
$12,000,000 25-year sinking
offered
determined
the
from
received
the notes will be used for the purchase
real estate
filed
1944.
July,
the
thrown
mortgage
debentures
be
DERBY
Vv.. 'V,/-;
date,
be
ding rule U-50 and names of underwriters
and interest
rates will be filed by post
to store and handle grain.
Offering—Approximate
the
$30,000,000
of
insurance
companies
both
pursuant to Commission's competitive bid¬
Business—Corporation is a new company
Proceeds—Proceeds
1969
will
effective
Underwriting—None named.
both
proposes the issuance
general
fund
'•
proposes
that
should
company
Address—Alva, Okla.
and
4s,
as
had denied the company
to
amendment
In
10,
subordinated sinking
6%
not
and
petitive bidding.
registration statement for
a
10-year
note,
fund
the
war.
There are indications that Although the 1943 Tax Act some¬
point to the war being paid for what increased the excess profits
through a basic increase in the tax load, it seems clear to legisla¬
price level. It looks as if post¬ tors as well as economists and
war unemployment and economic
businessmen that we have about
reverses will be staved off, for a reached the point of diminishing
time anyway, through American returns in wartime corporate tax¬
financing of world reconstruction.
has filed
CO.
3V2S
as
debentures
the
sell
to
privately
bentures
ELEVATOR
TERMINAL
bonds
for
100
declared
and
SUNDAY, AUG. 27
PUBLIC
bonds,"
fund
the company will submit
competitive bidding.
to
uunas
will
Filed Aug. 5,
Aug.
of
public
the
The New York State Public Service Com¬
offering
"Chronicle,"
the
for
permission
000
$250,000
by amendment.
ASSOCIATED
In
to
sinking
mission previously
due
the
and
and
amendment.
Details
*
the
to
rate
outstanding debt by
sale
mortgage
than
issues
1, 1952.
Balance
working capital of the
to
and
Paige,
providing
Nov.
Interest
supplied by
ALVA
dividend rate will be sup¬
Piled July 29, 1944.
Details in "Chronicle," Aug. 10, 1944.
public
plied
a' crisis, the problems
possibilities of post-war loom
large in the calculations of inves¬
tors. Taxes are among the many
after the
price
offering
The
.
added
1944.
by
filed
be
will
underwriters
be
its entire
series, due Aug. 1, 1969.
100
less
1944.
$4,287,360,
and
due
bonds
29,
for
debentures and the concurrent
and
private sale of $30,000,000
E.
than
aggregate principal amount of
mortgage and leasehold 4% sinking
first
and
"The
A.
Reynolds & Co., $200,000 each. ' Part
of the proceeds will be applied to the pur¬
chase
and cancellation or redemption of
for
June
President of the company,
announced Aug. 3, 1944 that company had
entered into a firm agreement with Halsey,
Stuart & Co., Inc., for the sale of the pro¬
posed $30,000,000 of mortgage bonds and
$12,000,000 of debentures.
Halsey, Stuart
& Co., Inc., has
agreed to pay not less
a
$450,000;
Aug. 1,
general
3%%
statement for $2,250,000 sink¬
Corp.,
CO.
statement
sinking fund deben¬
1969.
Company planned
25-year
issuance
issuance
and
respectively.
Pro¬
ceeds from sale of the new preferred and
common
stocks are to be applied to the
payment of the bank loan.
Balance will
be included in general corporate funds of
Indiana and used to acquire property and
for construction purposes.
The preferred
stock is to be sold subject to the competi¬
tive
bidding
rules
of
the
Commission.
apparently
war
filed
has
INC.,
CO.,
GAS
UNION
1944.
1944.
$12,000,000
Becker & Co., Inc.,
$300,000; Bacon?
Whipple & Co., Kebbon, McCormick & Co.,
the
at
596,749
the;
W i t h
SOYA
July 27,
registration
a
refinance
the
$1,400,000
and
$3,596,749,
filed
C.
First Boston
$900,000;
redemption and can¬
cellation of 38,731 shares of old 7% pre¬
ferred and 245 shares of old 6% preferred
of Indiana now in the hands of the pub¬
other
reaching
Post-war Outlook Good
to
G.
Taxes, Earnings and Stock Prices
*'
not
banks in the amount of $7,880,000
and use proceeds for purchase for cancella¬
tion of 544 shares of old 7%
and 35,473
shares
of old
6%
preferred of Indiana
from
American
Gas
& Electric Co.
for
to someone else.
realization
"Chronicle,"
tures due
ing fund debentures, due Aug. 1, 1959. The
underwriters
are
Glore,
Forgan
&
Co.,
Company proposes to make a
more
than six New York
$100).
the power of decision
surrenders
CENTRAL
registration
City
than does the person who
success
in
filed
Filed July 22,
amendment.
BROOKLYN
1941
be
will
underwriters
$12,000,000
THURSDAY, AUG. 24
CO.
ELECTRIC
a
loan
business achieves greater
own
MICHIGAN
&
registration statement for 120,shares of cumulative preferred stock
000
further believe
who looks after
person
INDIANA
has filed
Names
anticipation
be
10, 1944.
'^I;
THURSDAY, AUG. 17
•;
(Continued from page 685)
and
'I'
r*:,
;
Aug.
Market Alter Victory
on
' V
'
■
their
of
soldiers
and
future
un¬
ago,
which
on
to
company
-
countries,
I its paid-in capital.
were
grouped according to dates
registration statements will
in normal course become effective, un¬
less accelerated at the discretion of the
days
producing
possibilities,
loadable funds. In
lieu of this I wotild recommend yet we should maintain an intel¬
that the capital of the Bank be ligently
selfish point of view.
| increased to 1 billion dollars and Frankly, I am more anxious that
| that the charter provide that it our returning soldiers are pro¬
may
sell its debentures to the vided with g6od jobs and the op¬
of success in their
| Treasury
Department , in
an portunities
.amount not in excess of 2 times
lives than I am as regards the
increase its
registration
filed less than twenty
whose
issues
of
statements
through aiding
countries
in
them
| to
construction Finance Corporation
purchasing
available for
general,
corporate
purposes.
Pending
specific allocation, some of the proceeds
may be used to carry additional receivables
and inventories, to increase bank balances
and
to pay current liabilities.
Principal
underwriters are Paine, Webber, Jackson &
Curtis and F. S. Moseley & Co., Chicago.
Others
will
be
supplied
by
amendment.
Filed Aug. 4, 1944.
Details in "Chronicle,"
sugges¬
List
the
of
funds
time the loaning tion, I again wish to emphasize the
! limit of the Export-Import Bank point that while it will be advan¬
lis 700 millions of dollars. While tageous to the American people
at
no
time has the limit been to participate in the redevelop¬
ment of the
the
effective
.
the
offering
Floiafiens
Details
•
The names of
by post-
petitive bidding Rule U-50.
pri¬
of financing foreign
sources
At the present
While it is understood that
703
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4308
i
has filed
a
FIRE
INSURANCE
CO.
registration statement for 50,$20 par, and
000 shares of common stock,
trust certificates for said stock.
Policyholders of Mutual Fire Insurance of
Germantown
are
to
have
pre-emptive
voting
to subscribe for the common stock
per
share in proportion to the
premiums paid by them upon
insurance policies issued by Mutual.
Vot¬
ing trust certificates representing shares
not subscribed will be offered to the gen¬
rights
at
$20
respective
eral
public at the same price.
All stock¬
will be asked to deposit shares in
holders
the voting
Bioren
&
May
29,
June
8,
trust for a period of 10 years.
Co.
are
underwriters.
Filed
1944.
1944.
(This list
Details
in
"Chronicle,"
is incomplete this
week)
& financial chronicle
the commercial
704
N. Y. 1-971
Teletype
IiAuover 2-0050
Firm
Thursday, August 17, 1944
Howard Stores
REMEMBER
•
•
Corp.
•
National Airlines
Trading Market*
Majestic Radio & Tel.
OUR long experience, up-to-date trading
BRAZILIAN BONDS
Bendix Home
facilities, and well-trained staff
App.
Electro!, Inc.
issues
all
MAKE it possible for
us to give you prompt
efficient service in
and
Brill "A" "B" &
7% Pfd.
harl marks & po; inc.
OVEtt
FOREIGN SECURITIES
-
SPECIALISTS
THE
-
M. S. WlEN & CO.
COUNTER SECURITIES
(Actual Trading Markets, Always)
Members N.
New York 4, N. Y.
50 Broad Street
flfflllflTF: CARL
Y.
Security Dealers Ass'n
25 Broad St., N.Y.
MARKS & CO. Inc. CHICAGO
Teletype
HAnover 8-8780
Y.
N.
1-1397
Kobbe, Gearhart & Company
U0ur Reporter
f
.
,
JOHN T. CHIPPENDALE, JR.
,
Members
4 45
,
companies in the last
10 days of the long-term 2Vz% Government bonds, and as a result
these obligations are selling at their highest prices of the year. . . .
learned that the trust companies have been making changes
was
York
NASSAU
Security
of their trust accounts and in several in¬
stances have disposed of long-term low-coupon corporate bonds and
reinvested the proceeds principally in the long-term 2Vz% Govern¬
ment
bonds that have been offered in the various War Loan
Drives.
.It was reported that trust officers are of the opinion
Dealers
~
'
STREET,
philadelphia
NEW
REctob 2-3000
YORK
5
high-grade corporate bonds and Govern¬
obligations has reached a point where it is now so narrow
that it is no longer considered advisable to continue to hold the
corporate obligations, since the differential between corporates and
ment
Governments is bound to widen from here on.
Enterprise 0015
new
r
it
believed
is
by
many
tend to increase with a widening
of the price spread between them. . . ..
of corporate obligations will
Riverside Cement
Class A
1-576
yobk
$1.25 Cumulative Participating
Stock
MUNICIPALS LIQUIDATED
Market
Some of the
savings banks outside of New York City have been
recently to dispose of their municipal holdings of the smaller
communities, at very high prices, and have used these funds to
take up deferred subscriptions in the 2Vz% due 3-15-70/65.
The
able
.
market
important in the cor¬
porate bond market, will be eliminated, and with a larger supply
of corporate bonds, prices lower than those presently prevailing
are anticipated. . .
Through the purchase of the long-term Govern¬
ment bonds,'trust funds are being invested in the best security in
the world and one that has the best protected market in the entire
.
LERNER & CO.
.
.
.
accounts.
A comparison recently made of
and those of the U. S.
...
PARTIAL EXEMPTS AND
.
CORPORATE
Electric
Illuminating Co.,
BONDS
Price
lst mtge., 3%,
Yield
108%
2.55%
2.55
Southwestern Bell Telephone Co., 1st ref. mtge., 3%, 1968__—107%
Cos ton Edison Co., 1st mtge, 2%%, 1970_^^-__w___
102%
Public Service Electric & Gas Co., 1st and ref. mtge., 3%, 1972..
108
2.59
2.60
Gas,
mtge., 2%%,
Electric
1976
&
Power
Co.
1970,—
(Baltimore),
1st
ref.
.
Philadelphia Electric Co., 1st and ref. mtge., 2%, 1971__
Dayton Power & Light Co., 1st and ref. mtge., 3%, 1970_„_.^._,
Illinois Bell Telephone Co., 1st mtge., 2%,
Southern Bell Tel. & Tel., deb., 3%, 1979.
102%
2.60
:;
2.61
106%
2.63
102%
during the past week and it
Issue
6-15-1967-62
2Vz
2%
12-15-1968-63
6-15-1969-64
.
As is
indicated
Price
Yield
100.17
108
,
Issue
2.46%
2%%
100.10
2.48
2%
100.9
2.48
'•
It
^
Due
12-15-1969-64
3-15-1970-65
a
As
and is
close
Price
,
Yield
district, that
.
It
profits
excess
the market
the
tion contracts awarded in July in
the 37 States east of the Rocky
taxes will be
among
the
relative
and
the
for
being
>
lines
learned that
securities.
due
100
of
2.48%
100.9
2.48
.
.
.
It
Was
pointed out that ordinarily for
a
existing, the December
high and the September maturity low,
brought about some switching in these
the
dealers
9-15-53/51
at
have
about
been
advising the purchase of the
100 22/32
and
the
2%
due
6-15-54/52
are
the
mended
comparable maturity
2%
corpo¬
ranges
attractive of the
2%
group.
.
.
One of the switches
.
recom¬
was
out of the 2% due 6-15-51/49 at 101 27/32 into the
due 9-15-53/51 at 100 22/32, since it is believed that the shorter
maturity is
close to its top levels for appreciation, whereas
appears to have good possibilities
for price betterment.
the
very
longer bond at these levels
...
one
Where
the
lengthening of maturity by slightly
more
than
two years is not too important, this change results in the lower¬
ing
of
premium
creased
2%
year,
in
but it is
non-resi¬
"
from
by
1.60%
than
more
for
2%
point,
a
while
due 6-15-51/59
to
income
1.90%
is
public
construction during the first seven
months of last year represented
61% of the total
so
as
compared with
far this year.
"Public
been trading
100 23/32 into the 2% due
15/32, since it is believed that these two securities
100.9
a
demonstrated
dential construction as well.
35%
of the institutions have
some
maturity is considered to be
and out of line, and this has
two issues.
Some
of public
construction
have
"In the residential field,
^
both
report went on
positions
private
been reversed in
the
.
was
The
"The trend is most remarkable
three-months' difference in maturity the spread is about 4/32, but in
this instance, with practically no differential
sented 92%
construction
repre¬
at this time last year
today in
In this
category are included commercial,
manufacturing
and
educational
buildings, hospitals, public and re¬
ligious buildings, social and recre¬
ational buildings, as well as mis¬
as
compared with 76%
non-residential
cellaneous
building.
non-residential
build¬
ings.
"Although the total July con¬
struction volume of $190,539,000
exceeded
by $6,878,000 the volume
reported during the corresponding
month of last year, the sevenmonth total for 1944 lags consid¬
erably
behind
the
total
for
the
January-July period of 1943. The
comparative figures for the sevenmonth periods were $1,150,760,000
and >$2,034,933,000,
the
Dodge
company's reports show.
in¬
for the
Interesting Situation
due 9-15-53/51.
Aeronautical Products, Inc., of¬
fers an interesting situation ac¬
Super Power Interesting
The Business
Man's Bookshelf
•
Facts
&
Figures
On
Govern¬
American Super Power prefer¬
ence stock offers interesting pos¬
sibilities,
according to a current
analysis of the situation issued by
John J. O'Brien & Co., 231 So.
La
tion,
30 Rockefeller Plaza,
New
York, N. Y.—paper.
Salle St., Chicago, 111., mem¬
of the Chicago Stock Ex¬
Lessons
of
the
change.
Copies of this memoran¬
be had from the firm
dum
may
upon
request.
V
Copies of this analysis
be had from John J. O'Brien
& Co. upon request.
Inter-War
Period—League of Nations Publi¬
1944.II.A.4— International
Documents
members of the Detroit Stock Ex¬
change.
International Currency Experi¬
ence,
cording to a memorandum issued
by Mercier, McDowell & Dolphyn,
Buhl
Building,
Detroit,
Mich.,
bers
may
cation
L. H. Gilmer
on
in residential construction where
partially exempt is very thin
"order market" with the dealers tending to stay
pending further clarification of the situa¬
an
side
for
ment Finance—The Tax Founda¬
Illinois Power Arrears
This fact was revealed
Aug. 14 in a report by F. W.
Dodge Corporation on construc¬
year ago.
to say:
)ut of the 2% due 12-15-51/49 at about
1-15-51/49 at 100 24/32 at a differential of only 1/32, and in some
cases it was reported this
change had been made
the same prices
.
Giant Port. Cement Arrears
obliga¬
is playing
relatively more important part
in building activity than it did a
a
....
principally
most
are
taking advantage of an opportunity which may not last too
long.
It was also reported that many trust accounts have not
replaced corporate issues that have been recently refunded with
lower coupon obligations but have turned them in for redemption
and reinvested the proceeds in the long-term Government 2>k%
Pressurelube, Inc.
longer-term
July
•
..
.
result
a
to
tion-,.
in the post-war period. . . . Based upon these
ideas, it is indicated
that the trust companies, in disposing of high-grade corporate bonds
and reinvesting the proceeds in long-term Government obligations,
Eastern States Pfd.
Teletype BS 69
construction
Mountains.
.
obligations.
at
.17 in basis in favor of the corporates, an
bonds.
and
first taxes to be reduced, are given as the reasons for the with¬
drawal of considerable of the demand that existed for these
...
.
intermediate
large
was
financial
that many believe must widen
It is contended by experts on the
bond markets, that high-grade corporate obligations will sell between
.50 and .75 in basis above Government bonds of a similar maturity
.
the
were
pointed out that at presently prevailing high levels,
these securities are in demand only by those institutions that
need excess profits tax exemption. ... The prospects of an early
ending of the war, together with the belief held by many in the
2%
by this study the differential between
extremely narrow margin and
substantially in the future.
both
that there
...
velopments.
2.65
:
rates and U. S. Government bonds of
from only .07 in basis to
in
sale
reported
There appears to be considerable uncertainty concerning
future of these securities because of the favorable war de¬
the
2.63
UNITED STATES GOVERNMENT BONDS
Due
2¥t%
for
was
...
1981
■
y
PROFITS
Private
TRADING ACTIVITIES
104%
Consolidated
SQUARE
MASS.
HUB 1990
Tel.
.
high-grade corporate bond yields
obligations is as follows:
■■
Cleveland
.
EXCESS
The partially tax-exempt Government bonds
gave ground again
f
Government
•
of these institutions have not had the expected increase
some
OFFICE
BOSTON 9,
Construction Contracts
Z%%
desirable investments for trust
POST
Awarded In
.
bonds are marketable obligations,
eligible collateral for loans and acceptable at par for the pay¬
ment of Federal estate taxes, and at present prices are selling
only about one-quarter of a point above par, all of which make
them
10
.
deposits while others have lost deposits, which, if not for the
obligations, would have necessitated
major portfolio changes in order to meet deferred commitments
made during the last War Loan.
since with large refunding operations to be carried
out over a period of years, following the ending of the war, the
Treasury, in order to do this successfully, must keep Government
bond prices stable.
long-term
known
.
request
sale of this type of municipal
group,
These
lesser
.
since
.
bond
these
municipal bonds was very limited,
high prices, but has improved, now, that the communities
which issued them are buying in their own bonds.
This has
been of advantage to the savings banks which held these
securities,
tions.
The scarcity factor, which has been very
for
Uy2 -13*4
Circular sent upon
at present
blocks
MARKET PROTECTION
—
Dividend Arrearage
in
.
that the present time
affords as good an opportunity, as may be presented, to make
the change from corporates into Government bonds. . . , It was
pointed out that at the conclusion of hostilities the supply of ;
Government obligations will tend to decrease, while the amount
Likewise,
a
bell teletype
telephone
.
the spread between
that
Outstanding Cement Stock
With
Association
;y, -y.-yr.
telephone
There have been large purchases by trust
It
New
V'.':>'y:
in the holdings of many
An
INCORPORATED
On Governments"
Service, Columbia
Interesting Situation
Liberty Baking
Preferred
Common stock of Central Ver¬
mont Public Service offers attrac¬
tive possibilities,
according to a
being distributed
by Buckley Brothers, 1529 Walnut
St., Philadelphia 2, Pa., members
University Press, 2960 Broadway,
memorandum
New York 27, N.
W. T. BONN & CO.
120
Broadway
New York 5
Telephone COrtlandt 7-0744
Bell
Teletype NY 1-886
Post-War
Other
Y.—cloth—$3.25.
Monetary Plans and
Essays—John H. Williams
—Alfred
A.
Knopf,
York—cloth—$2.50.
Inc.,
of the New York and
Philadelphia
Exchanges. Copies of this
interesting memorandum may be
Stock
New obtained from
Buckley Brothers
upon request.
Kill, Thompson & Co., Inc.
Markets and Situations for Dealers
120
Broadway, New York S
Tel. REctor 2-2020
Tele. NY 1-2660
@FedFRASER