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AUG 2 0 1943
Final
Edition
ESTABLISHED OVER 100 YEARS
In
2 Sections—Section
1
ommetCLdL an
Reg. TJ.
Volume
158
Number 4204
New
Romlh Made Officer
Post-Wai
and
Bank
Miami, Florida
institutions, - The
affiliated
Coral
.,.
I'
Gables
First National
u •'
Bank,Little;
River
Bank
and
Trust
Company
First
and
Trust
Company, has
made
been
Vice
Reviewed
r ♦.
Five
tentative- proposals
stabilization are mow before
dent
of
First
;
A11 t h
Company
e
and
•
Vice President
:and
of
Vand
H
\
.
fice
of
tains, his
"
at
The
First
•
National
American
book ;
drained /the
belligerents of
gold and dol¬
of¬
Bank
Miami, where since January he
lias been Vice President in
charge
of loans on stocks,
corporate and
lars
U.
time' have
S.
ager
the
is
Romfh,
of
son
Founder,
Chairman
of
Edward
President
the
boards
four institutions.
'
C.
Frank
of
the
ity
Special
material
with
activities
in
necticut,
and
reference
to
side
the
items
States
Michigan
and
of
dealer
of
Con¬
Missouri
in this issue,
appears
Connecticut
gan,
page
page
and
the
692; Michi¬
Missouri
690.
;
on
;
i
war
we
hope, and if
we
store world trade to
tions, for the future
Ry ERNEST It. ABRAMS
exchange
the
must
give
to
are
re¬
safe propor¬
tities
hot
and
heeded
708
page
QUICK ACTION ON DESIGN
AND CONSTRUCTION
also
V:..;
SURVEYS
Exchange Commission and the Federal Power Commission have
the position that they have mandates from Congress to con¬
tinue certain peace-time regular
uary
which the FPC holds to
til
Congress,
by
in
effort, un¬
specific order,
war
directs
to
them
As
stop.
result
on
as
vately
since
and
Pearl
been
months
seven
forts
of
of
a
-
French
5 billion dollar fund
$1,250,000,000.
:
The
Ilsley-Canadian
creases
about
or
t
plan
in¬
Ernest
R. Abrams
required
as
the Morgenthau plan.
The
Keynes-British
ambitious.
..
It
-
the Public
under
fixes
1 is
total
in
no
in
aid
:
These irrelevant activities arise
under
plan
activities
•
Utility Holding
Company Act of 1935, which
for
vides
pro¬
than
more
regulation
for the disso¬
them help. To these purposes the
plans address themselves.
:!
with our "quota" about 4.5 bil¬
lions, but this figure is decep¬
tively small because the "quotas"
lution of electric and gas
•
primary
involved
ests
cordingly,
them
American
in
inter¬
the
plans, a<>
that
of making
enough to be of
are
generous
borrowing limits and no limit
is placed upon what must be lent.
Consequently the United States,
are
help with the war and the
subsequent; reconstruction, with¬
under this plan, has an obligation
to sell goods on credit in amounts
which
making, them
exceed
our
so
means.
lavish
What,
outset, is the comparative
to-which
commit
we
to
as
at the
extent
to
a
conceivably add
can
lars.
ourselves
The
:
up,
not
5, but to 25 billion dol¬
mere
total
(Continued
can,
on
in fact,
be
page 695)
some
cases,
holding
companies. > While Title I of the
Act does grant the Securities
Exchange
to
carry
rected
powers
mission
to
certain
on
the
at
holding
gas
Commission
and
authority
activities
di¬
disintegration
of
companies,
Title II em¬
the Federal Power Com¬
to
compel
utilities,
rewrite
among
their
tion
11, and particularly of sub¬
(a), (b), (c) and (d)
are primarily reformative
electric
serve
In the main, their
punitive
and
penalties against public
as
are
utilities for real and fancied abuses
of the past. Yet, so complete and
extensive are the regulatory pro¬
visions
tions
contained
of
the
other
in
Act
that
sec¬
past
and
future abuses cannot arise without
the express approval and consent
of the SEC.
Even if all activities
under Section 11
were
tne Act would remain
suspended,
an
affective
piece of regulatory law.
In
brief, the provisions of sub¬
(a), (b), (c) and (d) of
Section 11, which comprise the
so-called
"death
sentence," re¬
sections
quire:
,1. The
of gas
utility holding com¬
panies into "integrated" systems;
(Continued on page 698)
and
rearrangement
electric
and
other things,
books
show property values
so
as
as
to
CHASE
THE
of Jan-
NATIONAL
■
AND
the Holding Company
largely
regulatory in
character, the objectives of Sec¬
requirements
man-hours,
which
war.
of
in their intent.
millions
way
winning the
I
are
ef¬
resenting
o
FPC
all-out
Although the other sections of
Title
Act
the
of
many
this fund to 12 billion dol¬
lars with the percentage
us about the same
from
more
rep
an
thereof,
4,800
employ ees,
plan
the
and
sections
devote
leaves
the
amounts to be lent up to us.
The Morgenthau-White plan re¬
quires from us a maximum of 25%
The
SEC
hindering
prosecution of the war.
have
full-time
.
the
are
forced
to
and
war.
of
which
utilities,
gas
person
first devoting it to
public service. It is these activi¬
ties
owned
electric
the
mean
unit of property to
the
up¬
"regulation
usual," pri¬
the
year
a
cost of every
this
of
insistence
Harbor,
•
1,1937, at their original cost,
tory activities, wholly lacking
contribution to the
which, according to Benjamin An¬
derson,'was lent by us abroad in
first
our
taken
a
after the last
ever
of
some
and
with the six billion dollars
pares
forcing
are
and, in
BANK
REPORTS
In connection with
|H1 FUNDAMENTAL
MANAGEMENT PROBLEMS
Bond
WAR BONDS
INVESTORS ■ INC-
Sanderson & Porter
ENGINEERS and CONSTRUCTORS
52 WILLIAM STREET
R. H. Johnson & Co.
Established
-"•NEWYOnK
PROSPECTUS
SanFrancisco
INVESTMENT
64 Wall
1927
•
,
Broaden your customer
for Banks, Brokers
service with Chase
SECURITIES
•
-
or
DEALERS
from
V
INCORPORATED
*
Albany
Buffalo
Pittsburgh
Williamsport
correspondent
15 EXCHANGE PLACE
Dallas
634 SO. SPRING ST.
JERSEY CITY
Syracuse
Hardy& Co.
Members New York Stock
HUGH W. LONG and COMPANY
PHILADELPHIA
Troy
and Dealers
BE
OBTAINED" FROM
AUTHORIZED
!
Street, New York 5
BOSTON
MAY
Brokerage
OF THE CITY OF NEW YORK
Service
FINANCING and VALUATIONS
Chicago
agencies
for ' industrial
out
on
to face this Nation,
industries, supplying
the very sinews of war, to divert seriously depleted manpower to
non-essential work.
In the present emergency, both the Securities
two Federal
quotas at about $30 billion dollars
we
real
General index
the thick of the most serious crisis
In
must give
Two
on page
691,
in
them
to
pro¬
severely to limit their abil¬
ship ps goods for goods.
we are to get them on our
as
ity
In This Issue
so
ductive capac¬
Yet if
interest
normal
Cist
and
'
same
destroyed
or
perverted their
department.
He
will
and
the
at
bonds, and also man¬
the customers securities
war
of
vision
use
Copy
a
Activities In Wartime
..
rough computation fixes
pocket-1 a maximum figure of $500,000,000
.from as annually available/ This com¬
a
which to buy.
;War will have
■■
"* main-
e
-
small
Trus't
..
e s e
products but
Bank
Company.
Laurence Romfh
for
Little
River
v.
Such materials could
'a, materials.
large; appetite be bought'; by us only ;as to quan¬
Officer
the
post-war
■
world ;with
•
Assistant
Trust
international
i
;■;
financing of our ex¬
plans envision port -sales • abroad only to the
a battle-scarred
extent of purchases by us from
and;.;>hungry foreign countries of strategic war
.Trust
t h
for
Mass.'::
our
country./ Three, the British, the
American, and the recently announced Canadian, are; official.
A
French plan is attributed to Andre Istel and Herve
Alphand.
And a
fifth plan has been offered in the "Chronicle"
by Charles S. Dewey,
Congressman from Illinois. ; This paper will attempt to review such
parts of the plans and of the com-^
ments published about them as
financially under each of these
seem
most
important from the plans?
The Dewey plan seems to en¬
standpoint of our own interests.
Presi¬
Price 60 Cents
A Moratorium For Non-Essential
By FRANK' CIST, Brewster,:
of
Office
York, N. Y., Thursday, August 19, 1943
member of the boards of The First
National
Pat.
Exchange
Of Florida Banks
MIAMI, FLA.—-Laurence Romfh,'
S.
LOS ANGELES
Members New
York Curb
30 Broad St.
Tel. DIgby 4-8400
facilities
Exchange
Exchange
New York 4
Member
Tele. NY 1-733
Federal
Deposit Insurance
Corporation
Puget Sound
Power &
$6
1
Light
Actual
Preferred-Common "wi'
Trading Markets, always
thru
wide dealer
Federal Machine and
contacts
Over-The - Counter
Securities
and
other
Exchanges
i
London
-
Geneva
'
v
YORK
4, N,Y.
25 Broad St.
HAnover
2-0600
:
Rep.
Teletype NY 1-210
INCORPORATED
N,
Y.
Security
Dealers
LaSalle St.
State
8770
Teletype CG 121«
;
1
'
upon request
45 Nassau Street
Tel.
REctor
Philadelphia
2-3600
New York 5
Teletype N. Y.
Telephone:
1-576
Enterprise 6015
Analysis
upon
request
HART SMITH & CO.
REYNOLDS & CO.
Ass'n
Common
Products, Inc.
Bapis Reports
CHICAGO 3, ILL.
135 So.
L
Kobbe, Gearhart & Co.
Members
NEW
Public Service Co.
Purolator
Hirsch, Lilienthal & Co.
Members New York Stock Exchange
Southwestern
Welder Co.
Members
New
York
Stock
Exchange
120 Broadway, New York 5, N. Y
Telephone:
Bell
REctor
Teletype
NY
Members
New
York
Security Dealers Assn.
52 WILLIAM ST., N. Y. 5
Bell
HAnover 2-0980
Teletype NY 1-395
2-7400
1-635
New
York
Montreal
Toronto
ira haupt & co.
Members
111
New
York Stock
Broadway
Exchange
REctor 2-3100
Teletype NY 1-1920
I
& FINANCIAL CHRONICLE
THE COMMERCIAL
686
•vV"--
Thursday, August 19, 1943
.v;
> >K
''
i
;Trading Markets in:',
U. S. FUNDS for
We Maintain Active Markets in
Braniff Airways
•
American Cyanamid Pfd.
,
Tennessee Products
INDUSTRIALS^
CANADIAN
Pfd.
Com. &
Central Public Utility
Sy2s, 1952 "•
-
y
Remington Arms
CANADIAN MINES
Mid-Continent Airlines
Members
New
York
.
Exchange PI., N.Y. 5 HA
40
"
;
:
'
A-
>
115 BROADWAY
i
,
r !r
Members New. York Stock Exchange
Teletype
'
/*;'
NY 1-672r'
120
V
y
A Practical
Du Mont Labor.,
Common
Dodge, Des Moines & Sou.
4's
&
:
Mayflower Hotel 5's, '50 & Com.
Setay Co. Common
Mitchell & Company
Stock Exchange
N. Y. 5, N..Y*
Baltimore
behaving
have
the
Y. 1-1227
matter
an
at
once
this
because
the
1952
Taggart Corporation
Exchange
COrtlandt 7-4070
System Teletype NY 1-1548
B.
probably have a supply of
(demand deposits of report¬
ing member banks plus money in
circulation) about three times as
of
large
that of 1937, the-last good
year before the war broke out.; It
seems
likely that many- individ¬
uals will cash in their government
a
vicious
this
in
of
have
tinuing
so
Common
&
as
Shoe
normal
ments
Indiana Limestone
Inc.
Retail
6s,
birth
1952
Preferred—5% s,
Teletype
the
necessary
will create an
cash.
people
also
we
catalytic
have
(Continued
war-
War
692)
page
■
Scranton-Spring Brook, Pfd.
>
Works
than June, 1942, compared with corresponding, percentage
January, 43.5 for Feb:$—:
——
40.0 for
and 26.3
March, 30.8 for though the June 1943 net income
for May of this has not been reported, the ICC has
that
estimated
plant construction has al¬
here
,r on,
will reflect .production
figures alone, without the super¬
imposed traffic which was neces¬
sary for the construction of fac¬
SreertemiGompan^
Security Dealers Assn.
Wall Street, New York 5, N. Y.
2-4850
James
-
Maguire
B.
■,
Howard
&
Harris,
S.
Ohio Match
:
Robert C.Mayer&Co., Inc.
Established
30
Pine
Company.
DIgby 4-7900
>
.Bell System Teletype NY 1-1790
.
Harris
Bros.
Brown
& Co.
1915
Street, New York 5
Telephone
v.-,.
...
Corresponding Secretary: Jamed
R.
Duffy, Paine, Webber, Jackson
New England
& Curtis.
&
Governor—Two Years: G. Carlion Jordan, Jr., R. W. Pressprich
:v
! Portland
&
Co.; Walter J. Connolly, Walter
J. Connolly & Co.; Lawrence M.
/
P. S. Plain
Governor
One
—
Year:
El. Pr. Prior Pfd.
Water Service
Federal
Electrolux
F. L. Putnam & Co.*
Inc.; William S. Prescott, Carver
Galvin,
Co., Inc.
y^'v^-: I
.
Any ten. members of the Asso¬
writing nominate
ciation may, in
additional
candidate
for office.
Notice of such nomina¬
however,
tions,
or
must
candidates
be
U.
James
the
in
'
.
7% Pfd.
'
...
Stevens, Graham, Parsons & Co.
:
1127
hands
one
the
of
,
at
Secretary
S. Finishing
,V;
7% Pfd.
'
Utilities Common
Citizens
Edward A. Purceil & Co.
Members New York Stock Exchange
{
Members New York Curb Exchange
i
65
Broadway
Bell
WHitehall 4-8120
System Teletype NY 1-1919
least
week before the annual meet¬
more
mate
it
approxi¬
may
$67,000,000,, after
*
all
taxes
ready passed its peak, and as the have been deducted—which is
war conversion program has also
substantially below the net in¬
passed its highest point, it would come of June 1942. - This is the
appear
that the railroads, from first time in recent years that the
Long-Bell Lumber
1-1126 &
on
1
Scranton Spg. Brook W.S. Pfd.|
B. Mon¬
Hunnewell* & Company.
Treasurer:
J.
example, June, 1943, operating revenues were
year.
Indiana Gas & Chemical
Teletypes—NY
reflects the views expressed
becoming evident that the railroads have already established
their peak earning power.
The trend from hereon is downward.
The rate of increase in railroad traffic and revenues has begun
April,
Happiness Candy Stores
Bell
♦This article
Earnings Have Turned Downward!;
to flatten itself out. For
Argo Oil
Y.
of goods
their desire for all types
]
.
,
Eagle Lock
HAnover
will, satisfy
It is
ruary,
Tel.
Many
•
&
man
Fed¬
:
Bakeries, Pfd.
Spokane Int'l Ry. Esc. Recpts.
;H.
their
(or
Deep Rock Oil Corp.
B. Ma-
Duncklee,
these
equivalent), we
additional supply of
the way.
19.8%
Members N.
take
to
bonds
YJ
Teletype NY 1-2361
.
Interstate
or
Recording Secretary: William S.
con¬
•
-
ident
r e s
Baldwin
Fed¬
Society of Security Analysts', luncheon.
on
of 39.7 for
37
or
P
James
yesterday by Mr. Dorsey at.the New York
Railroad
NY 1-1843
United Piece Dye
have
a
banks
::
Broadway, N. Y. 5, N.
120
REctor 2-7634
Governors:
■'
down
Insofar
makeV
home.
or
on a new
Reserve
LISTINGS
SHEETS"
C. E. de Willers S Co.
and
Officers
&
Telephone: WHitehall 3-1223
Bell
to
IN "THE
nom¬
inations x'f
1949
New York 5
20 Pine Street,
buy consumers
may
goods
OUR
SEE
have
lowing r
roe,
;
H. G. BRUNS & CO.
*
Sons, Inc."f" '
V Vice-President:
Paul
returns,
peace
exceeds supply.
Under
and services not currently avail¬
conditions, these basic ele¬
would
combine
to
Meanwhile,
give able by borrowing.
However,
6s, 1959
&
they
as
E1 d
o r e
racher•
guire,'; 'E.
be
Properties
"
Jr.; and Theo-
Rollins
agent, psychology, and we would
Struthers Welts
Common
soon
the commercial
eral
cash;
labor; and demand for goods and
Preferred
that
payment
services
W, L. Douglas
as
durable
a
eral deficits; there is a shortage of
Common
as
bonds
time.
have
we
Dorsey
June 130th,; we
next
By
com¬
ply
Harold
."V.-'
over.
will
huge
and
mounting sup¬
y
and
emergency
cash
of infla¬
We
Rails and Industrials
made thefol¬
present
Telephone
tolerated
are
war
can
Cash:
country at the
Byrndun Corporation
date for
Hussey;.; John
-E.
Sullivan,
is
the
tion
New York 5
Nassau Street
Nomina-
problem will come when the
rather
Curb Exchange
York
A
war
is p r e-
type
Vanderhoef & Robinson
New
•>'.
real
ponents
Whelan
N. Y. Curb
on
the
as
Actual Markets in
28,
Meeting of the Boston
when
We have all
Preferred
♦Traded
has been set
Sept.
—
up
restrictions
These
opportun¬
of
United Cigar
MASS.
d
sented.
Preferred
.
branch ofHces
miAums
Slafie Of Officers
.v
probably hold-the-line
reasonably well until victory. The
make
ity
Bell
our
Securities Traders Association.
,.
ing commodity prices and wages.
pf they
type
he
"Interstate Power
I
bring
because of the
dictate
commitments
6s
-
should
the
.
•
they have been for the past couple
as
understanding of
will
31
Direct wires to
the subject of ting Commit¬
assure us'that'it will tee, composed
only be a matter of a very short time before mass investor .attention of William F.
is again directed to this issue.
As a matter of fact, it is a subject of May,
Chair¬
such paramount importance to the future of the country that every¬ man; Andrew y
one
should be thinking about it,<*>
N.
—-——
Winslow,
although
the
astute
investor I time restrictions which curb ris- Jr.; Eugene R.;
should
WOrth 2-4230
Teletype N.
With stock prices
*
BOSTON,
the Annual
President, Argus Research Corporation
;
of weeks, it may appear rather incongruous to
inflation.
However, fundamental conditions
Pittsburgh Hotel 5's, '62 & '67
120 Broadway,
'K
1943
^
.By HAROLD B. DORSEY*
Common
v
Members
•
NY 1-1557
NewOrieans,La.-Birmingham,A!a.
*'
2-7815
Boston Traders Gel
Interpre¬
tation of Inflation
Empire Sheet & Tin Plate
Bell
REctor
>
St, New York 4, N. Y.
HAnover 2-0700
>
BROADWAY, NEW YORK
Tel.
Members
25 Broad
TELETYPE NY 1-423
BELL
Ft.
1971
Steiner, Rouse & Co.
■}' *
Members
j? New 'Ybrk Stock Exchange
:» New York Curb Exchange
NEW YORK 6, N. Y;
Telephone BArclay 7-0100
2-2772
3-6s,
Mc Donnell & To.
Members N..Y, Stock Exchange and Other Principal Exchanges
,
min
Walworth Pfd.
■' v-V '■.']*
■
.
'c>-'
Dealers Ass'n
Security
>•
v
Goodbody & Co.
king & KING
Established 1920
..
Birmingham Gas.
v:
Warren Bros. Class "B" & "C"
■
y.-
Alabama Mills
^
Botany Pfd. & Common
(
charges and taxes, more
tersely reflects the declining trend
of railroad
earnings
power.
John R. Meyer To Be
A. G. Edwards Partner
John
Stock
Louis
today.
May, if Federal Income Taxes are
'
(Continued
-Al-
.
-
\
on page
'
\
'
690)
-
Meyer will
become a
members of the New York and St.
monthly totals were below a cor¬
deducted.
R.
partner in A. G. Edwards & Sons,
responding month of a previous
year.
We present below a tabu¬
lation showing the twelve months'
with
successive
tories, plants, etc.
So much for totals,ending
total operating revenues.'■ mohths. The following tabulation,
The net income of the Class I in our opinion, indicates that the
railroads, after deduction of all crest of earnings was reached in
fixed
Foster & Marshall Try
ing.
Exchanges,
York
and
the firm's New
City office at 61 Broadway,
will
act
floor of the
in
as
&
alternate
on
the
Exchange for Gordon
formerly
Fitzpatrick
the past was
Foster
&
Avenue
New
Marshall,
—
a
James- C.
partner in
1411
Fourth
Building, members of the
Stock Exchange, as of
York
August 26.
y
in
D. Stott. He was
ner
Robinson will become
effective
Mr. Meyer will make his
headquarters
Admit L C. Robinson
SEATTLE, WASH.
a
part¬
& Co. and
Carey Trust—Al! Issues
Oklahoma-Texas Trust
in
with Sartorius, Engle
Co.^v"'';'^
Markets:
Position
Columbia
Baking, Pid. & Com.
Galveston-Houston Co.
Jefferson Lake Sulphur, Pfd. & Com.
Ainer. Utilities
PUBLIC
Serv., Pfd.
;
Common
Queensbcrcugh Gas & EL, Pfd.
Airline
Puget Sound Power & Light
UTILITY
Peoples Light & Power, Pfd.
G.A.Saxton&Co., Inc.
||70 PINE ST., N. Y. 5
i
Teletype NY
Crowe!! Collier Publications
Hearst
Stocks
Ward
WHitehall 4-49701
.
1-609
-
1926
Direct
Wires
&
like
you
4
a
W. L. DOUGLAS SHOE CO.
circular?}
o.
BOSTON
—
HARTFORD
Bell
—
:
2-8700
Teletype NY 1-1288
PHILADELPHIA
New
England Industries
g
Nu-Enamel
U. S.
Prior Preferred
120 Broadway, New York
Phone:- REctor
Liberty Baking, Pfd. & Com.
Preferred
Members New York Security Dealers Association
to
FASHION PARK, Inc.
On which would
Publications, Pfd.
Established
Transport
Stocks
Southwestern Public Service
Preferred Cr Common
FASHION PARK, Inc.
SPECIALISTS
.
Finishing, Pfd. & 5's 1544
U. S.
Radiator, Pfd.
,
Bought——Sold—Quoted
SIMONS, UNBURN & CO.
Members New York Stock Exchange
25 Broad St., New York
WAnnver
2-0600
Tele.
4, N. Y.
NY 1-210
York
Corrugating
T. J. FEIBLEMAN & CO.
Members
New
Orleans
41 Broad Street
BOwling Green 9-4433
Stock
Exchange
New York 4
Tele. NY 1-493
\
Volume
'
-Number 4204
158
The
THE COMMERCIAL
Cons. Elec. & Gas
,
William B.
Dana
Company
We have
3-3341
D.
AND COMPANY
f
William
Peoples Lt. & Pwr.
Seibert,
■:;
Editor and Publisher.
Dana Seibert, President
^
Thursday, August 19, 1943
Published1 twice
week
a
J.
issue
[every
Other
Monday]
on
Copyright
Company.
1943
by
Assoc. Gas & Elec.
York, N.
B, 1879.
B.
STRAUSS BROS.
Members
32
Dana
Y.,
under
the
$29.50
per
Act
of
Great
year;
Britain,
per
year.
NOTE—On account of the fluctuations
in the rate of
exchange, remittances for
subscriptions
and
advertise¬
ments must be made in New York funds.
Real
Estate
Department
Broadway
CHICAGO 4
Henry G.
Harrison 2075
Teletype CG
129
Pyramid Financial | ;
Corp. Formed In NY
John Squadrito
has formed the
Financial
Corporation
with offices at 67
Wall Street,
New York City, to deal in listed
Pyramid
unlisted securities.
and
Securities
declared: "
trend
was
Participations
between
Italy and
United States the office
the
taken
was
pected
Guaranty Trust Co.
local
Call
banks
40 Wall
New
York
St., N.Y. 5
Bell
Admit J.
*
•-
j
NY
1-2033
v.T"
•>
r
r'-
• •• •
Cleveland Traders
«
CLEVELAND, OHIO — Seven
members of the Cleveland Secur¬
Traders Association
the
tend
National
will
Bonoghue
—
Sincere and
Company, 231
South La Salle
Street, members of the New York
and Chicago Stock Exchanges, will
admit John J. Donoghue to part¬
the
York
annual
meeting of the
Security Traders Asso¬
Chicago, it is announced
N. Russell, Giilis-RusCo., President of the Cleve¬
Interesting Situation
Grande Western
offer
1936
of
4s
& Rio
interesting
an
land Association.
situation, according to a circular
just issued by Pflugfelder, BampParsons, Jr. and Carl H. Doerge of ton & Rust, 61 Broadway, New
Wm. J. Mericka & Co.; Corwin L. York City, members of the New
Liston of Prescott & Co.; Waiter York Stock Exchange.
Copies of
Carey, Robbins, Gunn & Co.; and this circular may be obtained upon
Mr. Russell.
Paul Bowden, Ball, request from Pflugfelder, Bamp*
Those attending are: Edward E.
Co.,
a
national commit¬
and
Oliver Goshia of
Collin, Norton & Co., Toledo, who
of
member
a
the
Cleveland
.
„
Aircraft
S. W. Public Service
Ward & Co., 120 Broadway, New
York
City, members of the New
York
Security
circular
on
a
Service
Public
at current levels offers
attractive speculation according
to
a
memorandum
detailed
dis¬
Associa¬
cussing the situation prepared by
descriptive
W. Dameron of the statistical de¬
Dealers
tion, have prepared
an
Kellett Aircraft
Corp.,
partment of Ira Haupt & Co., Ill
manufacturers of the Kellett Auto-
Broadway, New York City, mem¬
giro plane and manufacturers and
bers of the New York Stock
of
subcontractors
aircraft
parts.
and
in other States.
other .leading
Ex¬
ex¬
ties
i
I
business
Henry G. Riter, 3rd
gratifying
s
to
conduct of its members, such rules
securi¬
am
offer
somewhat
of
a
Public National
Cornell Dubilier
Saratoga Rating Assn.
National Radiator
Queens Cty. Jockey Club
Company
LUCKHURST & CO
Members N. Y. Security Dealers Ass'n
60 Broad St.
Tele. 1-1825
N. Y. 4
C. E.
upon
61
associations
NASD,
challenge,
Our rules
(Continued
for
on
such
J.F.Reilly&Co.
Members
New
York
admission
Ill
Dealers
Assn.
Broadway, New York, N. Y.
REctor 2-5288
691)
page
Security
as
Bel!
i-% i
The
They
Myth Of An Early Peace
System
Teletype,
Y.
N.
1-2480
Gisholt Machine Co.
"just around the corner"—that army of
vastly outnumber the men of the armed
forces. They tell us, and they are genuinely aggrieved when we have
the temerity to differ with them, that it will be "all over by Christ¬
mas," or Thanksgiving, or Labor Day, or whatever nearby date their
fancy'conjures up for the purpose.
that peace is
armchair strategists who so
We
with
that
say
wish
that
them.
could
we
We
could
we
wish
and utter
com-
oleteness of the splendid victories
in Tunisia and Sicily as harbing¬
of equally
the
.in
long and wearisome months may
before the Stars and Stripes
wave oVer the ramparts of Berlin.
*
The -most
Tunisia
army
,
*
*
vivid
is
of
,since
this
recollection
of
Axis
being driven from pillar to
It has
post to final annihilation.
been easy
ous
to forget the long, tedi¬
months
of
that
preparatory
went
began we have
2,000,000 men
and 20,000,000 tons of supplies to
destinations
in
fifty
different
countries.
And today, after all
Ihose long months, and after all
those great victories, we have yet
to
set
foot
upon
the
soil
of
Europe.
•"Fs
the
-
Tunisian
year
a
The
*
policies
and rights
Stromherg-Carlson
Barfgis Brothers
MlRlOD& [o.
170 Broadway
Bell System
military
clearly de¬
fined lines.
They call for placing
the most magnificent weapons the
world
seem
has
for
call
our
Johnstown Traction 4s, 1852
to follow
ever
nands of the
known
in
Colonial Utilities Common
Great American industries
the
private soldier. They
the
supplementing
Greater New York Breweries
of
The
lery, tanks and auxiliary equip¬
ment
know that
campaign
was
ago; the Sicilian
now
All in all,
that
devise.
=
COrtlandt 7-6190
Teletype NY 1-84
s!«
of
that
periods
preceded the Libyan and Sicilian
We
common
these with the finest mobile artil¬
before.
aration
Request
Miller Tool & Mfg.
some
prep¬
painstaking
similar
on
Federal Screw Works
war
transported
leaders
powerful
a
Memorandum
agreed
sincerely
accept the aston¬
ishing swiftness
:
•
request
human
ingenuity
Harriman Building 6s,
1951j
Savoy Plaza 3-5s, 1966, W.S.
can
Finally, they call for the
protection of
composed
a
of
(Continued
vast air umbrella
the
on
swiftest
page
705)•
and
Frank C.Masteison & Co.
Members
64
New
York
Curb
Exchange
NEW
WALL ST.
YORK 5
HAnover 2-9470
Bottling Co. of Chicago
Coca-Cola Bottling Co. of St. Louis
Panama Coca-Cola Bottling Company
Red Rock Bottlers, Inc.
'
i
i
Bridge Co.
Miami Bridge
Co.
Common Stocks
~
Members New York Security Dealers Association
74
Broadway, New York 6, N.-Y.
Telephone BOwlingr Green 9-3565
Established 1914
Detroit International
Bought—Sold—Quoted
HOIT, R8SE S TRQSTER
Security Dealers.Assn.
Teletype NY 1-1666
Bottling Co* of New York
Coca-Cola
.
Unterberg&Co.
Members New York
the
securities
On the other hand,
wondering if it also does not
degree.
a
origin in the
by
Congress
establishment of
permitting
Coca-Cola Bottling Co. of Los Angeles
Coca-Cola Bottling Co. "A" of Cincinnati
Bank & Trust Co.
Analysis
request
"■-■■■
Blair €r Co.
Mtg. 6's
on
administering rules regulating
the
Coca-Cola
1st
Circular
Teletype NY 1-1140
from Ira Haupt & Co.
Georgia (r Florida
Water & Gas
:
having their legal
legislation passed
.V
-
...
/
to
affair six months ago.
...
'
of
circular may be had upon request
«
f
••
said, this re¬
turn of people
be had from the firm
■'
:
have
j; "As I
planned
.request.
'
know, our Association
charged with the responsibility
changes. Copies of this interesting
upon
Federal
"As you
Copies of this interesting circular
may
Teletype NY 1-1203
Near Term Profit Prospects
It
is
campaigns.
change
Broadway, New York,'N. Y.
HAnover 2-8970
a
sibility that prompts me to write
to you and to your contemporaries
the
pass
Possibilities Interesting
Attractive Company
INC.
Members New York Security Dealers Assn.
39
'
come
Southwestern
Kellett
investor is
to the
tract the undesirable elements.
wonderful things to
very
near future.
Come they will in time, but many
.
teeman,
association, will also attend.
of rep¬
individuals
QUOTED
Information
needed and val¬
a
is my concern over the latter pos¬
ers
& Rust.
ton
securities
-
L. J. GOLDWATER & CO.
enter
securities business would also at¬
the
over
SOLD
■
Statistical
member¬
Deny. & Rio Grande Offers
Denver
to
return
a
honest
render
can
seek
securities bus¬
ship of Raymond H. Kraebel as of
Aug. 26.
*
by James
Coons &
the
of
New
the
will acquire
Stock
Exchange
firm,
4-6551
desirable element to return to the
at¬
ciation in
£ell &
because of the
in
BOUGHT
Complete
desirable development, there
also, I think, the danger that
the conditions which prompt the
more.1
nership in the firm on Sept. l.">v
Thomas E. Hotsy, a partner in
Attending NSTA Meet
ity
CHICAGO, ILL.
Exchange
WHitefaail4-6330
Teletype
*
Stock
WHitehall
of ALL COMPANIES and
REAL ESTATE SECURITIES
is
;; s i x
months
or
Sincere & Go. Will
-
Newburger, Loeb & Co.
Members
STREET, NEW YORK
very
e,
past
the
for quotations
us
us
CERTIFICATES
Asso¬
iness
organization.
own
about,
who
While
and
uable service
has
e v
our
engage in the
business.
utable
improve¬
state
formed his
and who
who
1 i
e
ment
ment for
City Bank Farmers Trust Co.
b
of those
It
is.
with the Banking Depart¬
some time, Mr. Squadrito
being
Trust Co.
all other issues of
dog's
Let
TITLE Co.
.<•
■■..
degree
some
it
lance
gratify¬
us and
very
to
by the Government and after
over
;;r
particularly to organizations and
bodies
responsible
for
surveil¬
net
com e'
k;,"' ',:Kv
'
o'
Bankers Trust Company
Central Ilanover Bank &
is
in June, for the first
nearly two years, there
gain. This might be ex¬
to be
in
a
we
out
-i:;'
-v
and
time
Italiano, representative office at 2
broke
^
"During the last three months membership statistics of
ciation have shown an improving-®
ing to
for the past 25
officer of the Credito
Squadrito
years was an
Riter, 3rd, Chairman of the National Association of
Securities Dealers, Inc., has written all State Securities Commission¬
ers, urging care in issuing licenses to the many applicants for dealer
registration in order to protect investors.
In his letter Mr. Riter
Wall Street, New York. When war
and
and
"obsolitters"!
your
99 WALL
Teletype NY 1-5
Urging Care In Licensing Applicant Dealers
Board of Trade Bldg.
specialized
Mortgage
on
cats
wants.
Riter Of NASD Writes Stale Commissioners
for the past twelve
years in:
has
the
York;
Telephone HAnover 2-4300
Security Dealers Ass'n
DIgby 4-8640
Teletype NY 1-832, 834
Mr.
Our
York
March
Continental Europe (except
Spain), Asia,
Australia and Africa, $31.00
foreign
New
NEW YORK 4
■>
second-class matter Feb¬
as
Subscriptions In United States and
posessions, $26.00 per year; In Dominion
of Canada, $27.50 per
year; South and
Central
America,
Spain, Mexico and
*
bid
to
nobody else
Telephone:
ruary 25, 1942, at the post office at New
,
25 Broad Street, New
that
^
William
1
Reentered
'
Spencer Trask & Co.
:
Offices:
.•>-
Cuba,
HEPDOGS!
>
Chicago—In charge of
Fred H. Gray, Western
Representative,
Field Building (Telephone State
0613).
London—Edwards & Smith, 1 Drapers'
Gardens, London, E.C.
;
HEPCATS!
Rights
We're hep
TeL Bond & Share
Thursday (general news and ad¬
vertising issue) with a statistical
v
Common &
Kentucky Util.
William D. Riggs, Business Manager
|
LlCHTfflSTEin
"
trading interest in
Arden Farms Pfd.
"
BEekman
active
an
Southern Cit. Util.
Spruce Street, New York 7
Herbert
i
687
>
Publishers
25
FINANCIAL CHRONICLE
COMMERCIAL and
FINANCIAL CHRONICLE
Reg. U. S. Patent Office.
j > '
s
&
CRAIGMYLE, PINNEY & CO.
Trinity Place, New York 6, N. Y.
Telephone:
BOwling Green 9-^7400
Members
Teletype:
NY 1-375
New
ONE WALL
York
Stock
Exchana*
STREET, NEW YORK 5
Telephone
WHitehall
m
4-5290
Thursday, August 19, 1943
CHRONICLE
THE COMMERCIAL & FINANCIAL
688;,
NSTA Advertising Notes
Troster, Currie & Summers
74
Trinity Place, N. Y. 6—HA-2-2400—Teletype
INDUSTRIAL
Detroit affiliate's
our
advertising committee a couple of more ads have just come to hand
NY 1-376-377
Detroit firms.
from
As
Trading
Sattley & Co. who constitute
Bechtel of H. V.
Dealers Association
Members New York Security
Markets in
RAILROAD
-
to be expected A1
was
UTILITY
PUBLIC
Thanks to Don W. Miller of McDonald-Moore & Co. and Charles
Tryder of II. T. Greenwood & Co. has
MUNICIPAL
through in good style with business from Philadelphia.
come
Don Summerell of Merrill Lynch,<iv
Panama Coca-Cola Bottling
Pierce, Fenner & Beane, Los An¬
Coca-Cola Bottling of Los
Coca-Cola Bottling of New
Private
Wires
to
Buffalo
-
Cleveland
Detroit
-
Pittsburgh
-
getting
geles, who is also President of the
Angeles
and ads.
Los
helpful
York
on
AMERICAN TURF ASSOCIATION
HOME LIFE BLDG.
CHICAGO
New York
Street
New York
Bought
Carl H.
5, N. Y,
the
BecmitieA
address
will
Se¬
He
the
on
Mr. Chatters will ad¬
municipal forum on
Position of Municipal Fi¬
the
"The
in
nance
Bought
—
World."
Post-War
the
He is executive director of Munic-
Sold
pal Finance Officers Association
Incorporated
;>
New York S, N. Y.
63 Wall Street
Bell Teletype
I
1
NY 1-897
Check
us
Twenty-three regional security
including the
Bond Traders Club
of Chicago,
DALLAS, TEXAS
*
'...lit.•
Financial Chronicle," New York.
issue of Aug. 5, Mr. J. H. Harrison seeking to soft-pedal
the repudiation he thinks awaits our astronomical mounting debt,
writes that "England repudiated her debt to us, but seems to have
In your
plenty of friends in the United States."*
No repudiation, however, can be laid at Britain's door.
A brief summary of the British^
transactions may be useful.
Be¬ Britain off the gold standard.
her Allies eight bil¬ (Our devaluation followed.)
On June 15, 1933—six months
(much of it spent here but
hardly any ever repaid her), her after Britain's last full semi-an¬
purchases in this country for the nual payment (in bar gold) on
prosecution of the war of 1914- Dec. 13, 1932, amounting to $95,1918 totaled over ten billions, or 000,000—she made a token pay¬
$10,315,000,000.
Of this she paid ment of 10%, followed by an¬
$3,341,000,000 in cash for war sup¬ other on Dec. 15, 1933.
Mr.
Stanley Baldwin uttered
plies from August 1914 to April
solemn warnings, delivered to the
1917. ' cH. ■
United States Secretary of State,
After America's entry into the
of the catastrophic effects on the
war, supplies to the
amount of
world's
economy,
of continued
$4,074,000,000 were bought here
payments otherwise than in goods.
through the United States Gov¬
But in April, 1934, the Johnson
ernment. The Treasury disbursed
Act was passed, and Britain was
the money to our manufacturers
notified by the Treasury in the
and
shippers, and debited the
following June that token pay¬
British government.
Additional
ments
would no longer be ac¬
supplies, however, were bought
concurrently during 1917 and 1918, cepted in avoidance of default.
It is difficult to see how, when,
and paid for in cash, to the amount
and where the British government
of
three
more
billions.
(See:
has been
guilty of repudiation
American Foreign Debt Commis¬
throughout the history of the case
sion Report, pp. 91-93.)
as presented above.
;
From 1923 to 1933 Britain paid
ERNEST F. BARRY,
sides lending
lions
The
American
the
warned
Waring,
the United States Government
on
Statistician.
account of the above four billion
debit
less
than
$2,045,000,000.
i(Most statisticians agree that this
represents at peace-time prices
the full value of the goods.)
,,
no
The funding agreement of 1925
stipulated over seven billions of
interest
the
four
billions, so
that the 1923-1933 payments went
mostly to interest on the.Treas-:
ury's books!
on
Franklin D. Roosevelt wrote in
"Foreign
Affairs"
in
July
"We have wanted to eat
our
1928:
Boston, Mass., Aug. 11, 1943.
August 16 "about
about
force,"
said
"Times"
also stated:
He
police
the
to
Aug.
on
;
.
our
tariff
barriers, twice
Payments were thus vir¬
tually in gold, and they dislocated
world
Named To
Copperweld Steel Board
The election of R. Verne Mitchell
the
to
board
Copperweld
of
directors
Steel
Co.
of
has
the
been
announced. Mr. Mitchell is Chair¬
man
of
of the Executive
whose views
Members Philadelphia Stock Exchange
said,
expressed
Committee
tional
England, where,
have been con¬
of
in
study
scripted for several
Members New York Stock Exchange;
1529 Walnut
Aug. 16 in reporting Dean Gildersleeve's views quoted
her
as
fol¬
lows:
"There is
no reason
why
women
should not be drafted just as men
the
for
are
any
work
forces
armed
or
for
son
Products, Inc., Cleveland; Gen
Printing Ink Corp., New York,
and Cornell-Dubilier Corp.,
he
did
U.
read
S.
Billion Dollar
I
which
the
think
ply and support," but
sup¬
"ready
was
fairs,"
its responsibility
ready to execute it,
assume
"stand
and
but execute it
an
through the laws of
Congress."
"resented," he declared, that
while
executed "a few German
we
the
Hundred
subject in
a
interested.
was
fine
a
I
one
with the conclusions.
Anyone who can do simple addi¬
know
should
the
that
ex¬
and expenditures proposed
be met
and that
a
lot of
the
give-away plans are a bunch
of hooey which never will ma¬
terialize for the principal reason
that these funds will not be avail¬
able.
However, I am sufficiently op¬
timistic
that
believe
to
elimination of waste and
a
with
proper
budget that this country can meet
its obligations and I think
the
final
outcome
will
between the two.
American
He
Three
Debt,"
article
and I agree
to let that remain in the hands of
the American people."
He called upon the country to
"take a definite stand in world af¬
a
much
am
"Can
article
the
Support
cannot
America's financial interests shall
4-1527
6n Pesl-War Debt
I
"let some other foreign
of governments decide what
America's policy shall
be, what
to
N. Y. DI
Lauds Saxcn Article
penses
group
PH 265
—-
I have
I
am sure
a
be
\
somewhat
;'t
,
V'-.
number of friends who
would like very much to
of this report, and if
you could send me a
dozen or
of more I would be very much ob¬
should be compelled, eventually, their
government
to
sabotage liged to you. — Charles Stewart
as
England has been, to draft America," we then "turn around Mott, Flint, Michigan.
and let John L. Lewis sabotage
women.
tional
effort.
war
have
"I
>.
thought
always
have copies
submarine men, who came to this
we
following
country
the
orders
,
is
manpower
getting
worse,
situation here
ten
thousand times
although production
and
possibly
Britain's
him walk
population,
things
are
getting tight here, and things gen¬
erally
same
work
way
out
very
the
made
operation
of
a
"The girls there seem to
it
as a
matter of
"It applies to all
social classes."
Dean Gildersleeve returned full
of admiration for the great
South changes going
on
social
in England, par¬
ticularly in the field of education,
we
let
the streets of America
Jos. D. ECiug Now Is
With Faroll Brothers
ROCKFORD, ILL.
"There is something wrong
with
and
our
theory
justice
of
theory of government when wc do
he
however,
accept
and
free man."
the that,"
course," she said.
done,
war
could
men
(Special to The Financial Chronicle)
a
our
in both nations."
Gildersleeve
of
much the
much
as
those
as
have
the United States has three times
Harris-Seybold- women's draft in England.
eral
Phila. RIT 4488
not
the na¬
to
necessary
that
declared
Philadelphia 2, Pa.
St.,
Bell Teletype
tion
The be, whom America will feed,
years.
New York "Journal-American" of
McDonald, Coolidge & Co., in¬
bankers, Cleveland. He study
President
want
5-week educa¬
she noted, women
vestment
is
He
a
hands of
in the
international organization of
kind
under
any
circum¬
16, following
Aug.
on
ours
stances."
subject were
the
on
her return from
Dean
finance, and finally drew Plainfield, N. J.
any
any
cake
raised by us during the post-war
period.
is ad¬
women
by
of
America
i.
w.
BUCKLEY BROTHERS
in¬
an
force, he
police
Light & Railway Com.
New
16, which
not interested in
was
ternational
United
dispatch
special
a
Francisco
San
MARKETS
Puget Sound Power 4 Light Com. w.i.
of this talk
some
international
an
from
Virginia C. Gildersleeve, Dean of Barnard College,
"The
MitchTli
R. V.
Potter Company, Cleveland, man¬
and have it too; while exacting
payment we have made it doubly ufacturers of printing-press equip¬
hard for them to pay."
He re¬ ment and is a director of Thomp¬
ferred to
Drafting Of Women
of
>
on
Barnard Dean Favors
drafting
,
San Antonio
Peoples Light 4 Power Pfd. i
of Cali¬
department
fornia at its annual convention
cooperating with the na¬ because he did not know "who
in sponsoring
will command it" or "who will
meeting • which
is
being decide what that force is
going
streamlined into two days with
to fight for and sustain."
all entertainment functions elim¬
"I am only interested in a na¬
inated.
Larry Higgins, Hulburd, tional
defense force, an American
Warren & Chandler, and Leo J.
Army and Navy that will fight for
Doyle, Doyle, O'Connor* &* Co., the dictates of our American
judg¬
are handling hotel and registration
ment, regardless of what any in¬
arrangements.
:
'
^
ternational
court
or
society of
people may decide," he went on.
Describing himself as "a nation¬
alist," not an "isolationist," he op¬
posed "placing the destiny of this
The
..
-
TRADING
Legion National
F.Roane
Association
vocated
4
PHILADELPHIA
the
Says British Did Not Repudiate Debt
Southwestern Securities
Houston
are
tional
Utility Preferred Stocks
on
RAUSCHER, PIERCE & CO.
Dangers Of
Commander,
traders associations,
Inc.,
Ry. & Terminal 6% 1951
International Police
York
of the U. S. and Canada.
Frederic H. Hatch & Co.
Warns 6f
authoritative
most
tory bodies.
'Since 1893'
Dallas
All Texas
the#*
"Railroad
forum
of
one
■
So'west^rn Pub. Serv. Com. & Pfd.
Chatters, municipal expert, deliver the principal addresses.
McGinnis
dress
Holding Corp.
Southern Union Gas Common
will gather
country
specialists on rail securities in ttie
country and frequently testifies
before the ICC and other regula¬
Amerex
The "Commercial and
Quoted
—
Dr. Pepper
;
Security Traders Association, Inc., where members will
B. McGinnis, noted railroad security specialist, and
railroad
is
Editor:
Sold
—
'
hundred security traders from principal finan¬
curities in the Post-War Era."
Wyeth & Co.
Milwaukee,:
Boston
DALLAS
Patrick
hear
Mr.
Members Los Angeles Stock Exchange
Pine
30
•
V:
,
look
so
in Chicago Friday at the
House for the opening of the two-day annual meeting of the
of
centers
National
Bell Teletype LS 186
LOS ANGELES
26th
Security Traders Ass'n Opens Two-Day
Meeting Friday; 300 Expected To Attend
Palmer
LOUISVILLE, KENTUCKY
Distance 238-9
NEW YORK
INCORPORATED
boosters of the NSTA
us
More than three
cial
ijic
A.CALIXN«®COMESNY
of the "Chronicle" will appear
August
Republic Insurance
INCORPORATED
Long
is¬
Sold
BANKERS BOND
18th FLOOR, KENTUCKY
BONDS
listings
booster
some
Make the last shot count.
„
Let all of
Nal'l
TBI
sue
get busy and make a final stab at
Stock Bought and
in
Our special Annual Meeting
•:
for your
Please bear in mind we can firm's ad and your name and your
in
the
handle advertisements and booster firm's
paid
roster
of
Everybody else will be
listings up until August 23rd. We boosters.
can certainly use more contracts.
looking for|it.
->
V, >
Harold B. Smith, Chairman
A great surprise is awaiting you
NSTA Advertising Committee
when the meeting is called to or¬
der on August 20th
Collin, Norton & Co.
\ j
in Chicago.
end in his
St. Louis
-
affiliate, has been
the - business-getting
City, too. *
;
Angeles
proper
teurs.
went
that he
explaining,
agreed it
was
to execute the Nazi sabo¬
He
uncertain
denounced: "a
we^k,
vacillating
policy
and
in Washington
and
on,
dealing with labor
production"
Smith-Connally
and praised the
law
as
"a
step
—
Chicago, 111., mem¬
Chicago
Street,
Salle
bers of the New York and
Stock Exchanges.
formerly
a
Mr. King
1
was
partner in King and
Conrads of Rockford.
The former
Conrads
and
and
a
new
partnership of King
has been dissolved
partnership consisting
of Paul Edward Conrads and Mrs.
Lelia
King
has
been
continue the business.
forward."
Joseph D.
King has become associated with
Faroll
Brothers,
208 South La
formed
to
Volume
Number 4204
158
-lr
;
THE COMMERCIAL
& FINANCIAL
CHRONICLE
689
! I
*
'
_
t
Denver & Rio Grande Western
Bond Brokers
Circular
i
Aluminium Ltd. Common
.v.--'".;*'-
request
on
Vilas & Hickey
Members
New
\
49 Wall Street
i
York
Stock
'
Brown
Exchange
pflugfelder, bampton & rust
New York 5, N. Y.
Members
Telephone: IIAnover 2-7900
61
Teletype:
Company
Minnesota & Ontario Paper Co.
New
York
Stock
Broadway
NY 1-911
Noranda
Mines, Ltd.
'
Exchange
'
Kerr Addison Gold
New York 6
-
Telephone—DIjjby 4-4933
Bell
Teletype—-NY
Mines, Ltd.
;
>
San Life Assurance Co.
1-310
Fanny Farmer, Ltd.
We Must Make
Up
lllll Railroad Securities
Our Minds
Editor, "Commercial and Financial Chronicle":
As
the
war—in
its
European phase, at least,—draws nearer its
close, with victory for the Allies assured, it becomes increasingly
necessary for the American people to make up their minds in regard
to the economic policies they intend to follow when peace comes.
All hands
are
agreed that after this
to the condition of restricted production
ment which marked the
While few believe
we
a
escape
difficult period
be
oriented
market, depending upon
trade only to the extent
necessary
ucts
we
to pay for those prod¬
do not produce ourselves.
we are
sharply divided
among ourselves as to
is to be accomplished:
Under
goods
how
•
free economy,
our
cannot
be
followed
We
where
must
minds
therefore
moment which is to be
amount that
in the
can
be sold at
a
our
near
this
and
count
ary forces which precipitated the
last great depression.
;
States is
two
our
policy
program
Foreign Investments
there is
a
the
somewhat
Due
of
more
its
to
extensive
that
produce an exportable
plus
of
both y agricultural
subject to prior sale and change in price
Cleveland Short Line Ry. 1st
4V2S, 1961 @ 97
100M Erie RR 1st
4s, 1995 (ft). Par "
•
Co. Gen. & Ref. 4V2S, 1997 (ft 9414
50M Southern Pacific RR. Ref. 4s, 1955 @ 87
,
cific
did
not
get
retirement
only
real
in
efforts
started
until
PHILADELPHIA
sur¬
half
started
1941
with
in
Minneapolis & St. Louis
Minneapolis & St. Louis
Minneapolis & St. Louis
Minneapolis & St. Louis
than
there
Iowa Central
Des Moines &
and
1962
■
in
current
of
these
bonds
The
assets.
liquid
not
Dodge 4s
1935
Street
New York 5, N.
Y.
Teletype NY 1-897
substantial
the Pacific
as
was
operations
of
phase of the
intensified.
and
that most experts are con¬
fident of continued good
general
count
business
after
be
for
the
The
has
number
a
of
years
war.
debt
been
nearer
reduction
program
concentrated
term
the
on
maturities, and this
policy
even
included
may
debt
to
to
come
the
to
carriers
nental
a
capacities
as
ut-
their wider discounts from par.
10 years had
to
call
extremely heavy
'"■y.r-
and
your
& Co.
leans property,
virtually all of the
Pacific property and the
Francisco terminal, as well
miscellaneous securities,
in¬
cluding the valuable Pacific Fruit
Express stock.
In
addition to
•£>%
easing the maturity problems, this
anticipated debt program (consid¬
ered
are
$188,000,by July 2,1943. As the records
not complete it may be even
lower
than
that.
By the
t
end
should
the
good credit standing for the sys¬
tem. With this prospect the stock
is
entitled
liberal
to
ratio
sell
to
were
12
at
a
current
close to
months
far
more
earnings."
$25
a
share
through June,
1943.
of
down to
amount
to
no
more
than
New
To refund that debt the
company
would have available a first lien
on
all
to
for taxes
of
the
Texas
&
New
Or-
the
fact
that
favorably with that
York,
Lackawanna &
Western Ry.
STOCK
despite
during the months of
July, the Seaboard N. O. I. for the
year
1943
of 1942.
co.
specialists in rail*
120
broadway
n. y. c.
63
5
Tele. NY 1-1293
Wall Street, New York 5
BOwling Green 9-8120
Boston
,t
with
the early 30s and would be con¬
sidered low enough to assure a
$95,000,000 by the end of 1944.
COrtlandt 7-0136
'
and
$150,000,000 and considering the
well defined traffic prospects it
1. h. rothchild &
TELETYPE NY 1-1310
the minimum
possibility of much greater prog¬
ress)
would reduce charges to
around $22,500,000.
This would
compare with charges of $31,688,000 supported in the depression of
Earnings
.
NEW YORK 5
72
City,
■-a
for the
attention
reserves
Co.,
York
Copies of
circulars may be had upon
request from Blair F. Claybaugh
SEABOARD AIR LINE
Post-War Prospects
New
(common), which the firm
believes offer attractive
possibili¬
ties at current levels.
been reduced at least to
Ihe year it may well be
Southern
Claybaugh &
Philadelphia Stock
Exchange, have prepared interest¬
ing circulars on Ft. Dodge, Des
Moines & Southern
Railway (4s
of 1991 and
common), Utica &
Mohawk
Valley Railway
(4V2s
of 1941), and Consolidated Dear¬
000
retire¬
relatively early
of transconti¬
such
similar outlay due
a
The debt due within
taken for granted.
be
F.
Street,
San
A high
earnings
seems assured at least
through all
of 1944, not even
taking into ac¬
aggregate
had
in¬
items
Attractive Situations
these
Most
may
Teletype BS 259
born
y+V,
xetired with
Members New York Stock Exchange
1949
5s
•
Government
Mclaughlin, baird & reuss
2-1355
1932
1934
4s
will likely be continued
though a larger face value
of the longer maturities could be
compares most
HANOVER
6s
5s
addition, it is indicated that the
company had some $20,000,000 of
June
TEL.
Fort
rate
due from the United
Government
Boston, Mass.
:
members of the
1951
most
$52,000,000 of miscel¬
are
We wish
STREET
4s
conflict
were
laneous accounts receivable.
of these
:
Central
fi¬
position remains notably
trong. As of the end of May cash
items aggregated $138,737,000 in
RAILROADS
ONE WALL
1938
Bell
s
Pacific would be taxed to the
request
5s
63 Wall
nancial
which
0425
Incorporated
beginning of *1940.: {?" ;f I;
:v
Despite these retirements,
more
1-2050
Frederic H. Hatch & Co.
beginning of the cam¬
paign through July 1, 1943, rep¬
resenting about 15% of the nonequipment debt outstanding at the
end
YORK
Iowa Central
the
to
Teletype: NY
as
In all, roundly $100,000,000 of debt
hadbeen
retired
or
acquired
addition
CAP.
STREET, NEW YORK 5
(in reorganization)
large,- if not
larger, than for the full year 1942.
from
WALL
MINNEAPOLIS &
ST. LOUIS RAILROAD
or
about
was
were
Broadway
NEW
148 State St.,
Wall
The
This is ^particularly so in view of
Street
and 297
coupon
and
way.
the highly favorable earnings out¬
Even if the European war
look.
120
of
Blair
outstanding with the public (ex¬
clusive of equipments) in the first
ment
INCORPORATED
on
V,
Request
issue.
its
on
1940,
small
a
1
Whitehall 3-3450
nearly $150,000,000 since
May 31, 1942.
With this financial background
t
STROUD & CO.
Circular
on
LEROY A. STRASBURGER & CO;
acquisition of $34,441,000 of non-equipment debt
and were augmented by
roundly
$31,000,000 last year.
further
Teletype
levels
same
Tel.
creased
.
100M Reading
Broad
cur-rent
Dealer inquiries invited
property
cations that the reduction in debt
the
Chicago, Burlington & Quincy RR Gen. 4s, 1958 @ 99
100M Chicago & Western Indiana RR Cons. 4s, 1952 @ 104
on
"
.
Circular
liens at substantial concessions
from
bonds of the
United
that
50M
Thoughts
4Vz's, '77
y:;: "
Descriptive
investment
an
In
Some
Toronto
(Oregon Line)
NEW YORK CENTRAL
assume
considered the equivalent of cash.
296
Montreal
Southern Pacific
limited amount
a
bonds of several
rehabilitation and equipment pro¬
States
PH
HAnover 2-0980
Teletype NY 1-395
New York
underlying
As
of the few countries
fact
one
for
foreign markets for our duce
themselves,
or
from
"excess" manufactured and agri¬ countries which produce largely
raw materials and food to be ex¬
cultural products.
The
other
school
of
thought changed for manufactured goods.
holds that the
day has passed If, for example, in the post-war
when the export trade could be period, Germany should seek to
for
imports
of
American
depended upon to absorb our "ex¬ pay
cess" products; the United States wheat and lard by sending us
manufactured goods in return, our
being now a creditor nation, the
only way in which we can main¬ manufacturers and industrial
tain maximum production and full workers would undoubtedly de(Continued on page 701)
employment is by developing the
123 South
supply
can
of registered
In 1943 the pace of retirements
has been accelerated, with indi¬
of
25M
We
general expectation that
company's stock will
retirement
principal schools
and
how this manufactured products.
Our sit¬
problem is to be met. On the one uation is therefore quite different
hand, there are those who believe from that of countries which must
that
prosperity for the United export manufactures to pay for
States depends upon the develop¬ the food they are not able to pro¬
We offer
St., N. Y. 5
1
further,
progresses
debt
of thought in regard to
ment
I
operating efficiency, Southern Pa¬
future.
near
again set in motion the deflation¬
are
maturity problems.
up
In considering the possibility of
therefore, we must be able to find achieving
lasting
prosperity
buyers for the goods we produce. through foreign trade and foreign
Otherwise,
unemployment
will investments, we must take into ac¬
There
term
possible
Prosperity Through Foreign Trade
to maintain maximum pro¬
duction
and
full
employment,
we are
.
Bell
the
normal business
then
profit
this<S>
grams, which
incidentally have
been paying very handsome divi¬
dends in recent years in increased
make
at the earliest
produced primarily for
sale, production is limited to the
are
sufficient to induce entrepreneurs
to take the necessary risks.
If
simul¬
strife,
and also to a wavering and con¬
tradictory foreign policy.
this
is
reducing
cycles, •
but, also, it is gradually eliminat- |
mg the spectre of the very heavy
j
taneously without leading to end¬
less domestic confusion and
far,
WILLIAM
stature. y
But
so
to
ihe
duty we owe to the men who have
given their all to win the war.
<
only
gradually
program
burden of fixed charges to a level
considered supportable
under a
they
production
and
full
employment.
This is the sacred
52
up
consistent and rapid progress that has been made in
the debt reduc¬
tion program.
Not
As these two policies require
radically
different
social
and
political attitudes and techniques,
toward
maximum
HART SMITH & CO
relatively well in recent
periods of general nervousness in the speculative rail
lists, and many
rail men still view it as the most
attractive of the so-called marginal
roads both for near term
speculative purposes and for longer term
potentialities.- One very strong feature of this road has been
the
return
foreign
readjustment, there is universal
determination
that j American
shall
and widespread unemploy¬
internal
of
policy
return
no
period of\»>
the depression.
can
there must be
war
Southern Pacific stock has held
:,
Philadelphia
Tele. NY 1-724
Hartford
Teletype KC 472
6432
HArrison
Interesting Situation
Art
In
Growth
a
Old
Industry
Fifty-Three Years
Trading Markets in
York
LONG-BELL LUMBER COMPANY
7'/2S
INVESTMENT
Class
BANKING
Analysis
Request
on
'
Kansas
Portland
'eltason, Tenenbaum, Inc.
Kansas
Landreth
803
BERNHEIMER CO.
&
St. Louis
N.
Assistant
Arthur,
Valley
Louis, will join the Mercantile-Commerce Bank
the same capacity effective Sept. 1. Mr. Ar¬
ral Institute for the
Enters
St. Louis traders
NSTA Annual Meeting
the
street
New
dealers
well
expected
are
represented
at
the
National
Annual Meeting of the
Security Traders Association to
be
held
the
at
House,
Palmer
and 21. Jer¬
of Dempsey,
Chicago, Aug. 20
ome
F.
Tegeler
Markets in all
accurate
the
Louis
\
ST. LOUIS
Richter,
Henry
,
out
sent
has
SECURITIES
\
Direct Private
Offices
tional
Other
503
Stock
change;
Exchange
and
ST. LOUIS 1,
considerable
expected
from
is
Missouri Investment dealers and
Street
the
l
substantial
m
.
of
managements
Missouri
National
Candy
advance into
10
is
and
4
Co.
discussed
easily the most
issue.
Estimated
$586,078 or
share in the first half
compared with
mon
509 OLIVE ST.
System
continued
high territory
earnings for the six months ended
June
30,
1943,
total
$626,034,
equal to $2.89 per share of Com¬
SAINT LOUIS
Bell
has
new
industrial
local
St/%
Earnings Up
$2.69
per
of
a
Teletype—SL 80
ol
June
1942.
quarter
net
was
quarter.
At least
Ginberg,
Convention
and will be available for consulta¬
with
dealers
Chicago office in
Trade Building.
at
his
firm's
Board
the
;
company
contracts
war
Wood, Struthers Co. To
Admit Gantz and West
and
business.
known
well
rr
June
30, 1943
profit of $103,365
$0.52 per share of Common in
a
of the
manufacture
Peace-time
ac¬
Company included
of
commercial
West to
on
Exchange^
Gantz and
partnership in
September 1st.
Federal
•
Income
Tax.
and
accruals
J
v
the
percentage
that the step-
affairs
larger
depreciation
charges will begin taking toll of
the net income figures.
Prospec¬
tive
wage
the
changes
will
unfavorable
also
con¬
trast.
the maximum
Previous to
have
fairs
war
of railroad af¬
pointed out that the
students
iraffic,
expenses
pick-up
in
traffic—and
earnings — will rer
a larger increase in
the cash position and current as¬
sets-of
the
roads.
They
have
served that the
Since we have ob¬
operating revenue
could be successfully used by rail¬
of roads is
beginning to slow down
roads
rise, and since, on a compara¬
tive' basis, the net income is also
tures.
railroad
large
therefore in
fleet itself in
in operating revenues would
bring with it immediately a
corresponding
step-up
in
ex¬
an<jl, that
penses,
would
lag.
v
the
its
decline, it may be
that the monthly com¬
beginning
assumed
to
parisons, from here on may rellect,
progressively,
wider de¬
clines
throughout
the last six
months of 1943. In the first place,
in
(and revenues)
comparisons are
traffic
narrow
as
pointed
out
to
current
their
retire
assets
debt
;;
struc¬
mv;
the amount of tem¬
cash investments of rail¬
roads
is large—aggregating $2,324,600,000, on May 31, 1943—the
Although
of
amount
accrued
the
tax
lia¬
bility is also large, amounting to
$1,351,600,000 on the same date.
The ratio of current assets to curliabilities
lent
Furthermore, increased tax
since
little
has
changed but
beginning of the
the
year.
Current
Current
'■£
(millions)
_____________
——
(./April
$3,111
2,037
1,979
2,112
> 3,646
1.67
1.67
•v
1.74
1.73
,,,
-.HQ4
;.:l
3.887
May
Ratio
$1,862
3,448
-
(millions)
3,407
^
,
February
liabilities
assets
1943
January
men
that
porary
high levels of late
(End of Month)
.;
of
connected
Wm. R.
with
1.69
Notwithstanding
a
large imponderables, including the du¬
change in totals, the ratio of as¬ ration of the war, the level of in¬
sets to liabilities at the end of dustrial activity in the post-wai
frigerators and food store equip¬
ment, such
food
to
the
Government
have
been too low to permit profitable
operations
on
the
volume of business.
May 1943
same
Comp-
ton & Co. and later was a part- ;
of the
ner
sart
firm of Knight, Dy¬
Gamble
&
up
of
the
he
had
a
host
of
Investment
investment
banking friends throughout the
country.
victim,
Another
Charles L. Cunningham, Deputy
City, prim¬
arily in charge of its fiscal af¬
was
widely
known
by
and was
always an able and courteous
source of information regarding
Municipal
Bond
as
(1.69),
at the
was
end
almost the
1940
of May
(1.70).x-
tious policy toward rail securities
current A tentative conclusion, however
earning power. Therefore, the de¬ can be that railroad earning pow¬
clining trend of railroad earning er has already passed its peak
and that even though operating
power may not importantly iniluence
the
prices
of
railroad revenues should stabilize the in¬
equities.
However, it is signifi¬ creased tax accruals, higher costs
increased
cant to point out that in 1937'the and
depreciation wili
Ihen
declining
earnings
trend make for unfavorable earnings
brought with it declining stock
comparisons
from
here
on.—
prices.
II. L. Federman, Statistical De¬
While it is difficult to maintain
definite
conclusions - because
of partment, Ira Ilaupt & Co.
Current
railroad
stock, prices
men
facturers
Trust Co.
offers attrac¬
possibilities according to a
bulletin just issued by Laird, Bissell & Meeds, 120 Broadway, New
tive
Thompson With AMGOT
Arthur F. Thompson;*; Jr.;
Vice-
President of Harvey Fisk & Sons,
has
on
leave of. absence,
been commissioned
basis of the
Recently civ- in the AMGOT.
a
captain
,
.
Situations of Interest
Mfrs. Trust Interesting
The current situation in Manu¬
the City's finances.
Inc., who is
period, etc., nevertheless the de¬
clining earnings trend under pres¬
ent war conditions suggests a cau¬
have little relationship to
to the time
As one time
re¬
sales
their firm
is also evident before de¬
heighten
1942.
been
previously
had
merce,
fairs,
ended
of the New York Stock
Harold B.
1.9
made with the
death:
their
met
business
Comptroller of the
months
Street, New York City, members
M.
3.5
2,265,023
will
investment;
the
in
six
as electric coffee mills,
choppers, and scales. 1 It is
understood that contract prices on
Wood, Struthers & Co.,. 20 Pine
Gerald
2.223,203
*.9
March
following
Hussmann-Ligonier Company re¬
a net loss of $15,758 in the
of compared with
"
its
on
war
ports
tivities
admit
2.0
_
___
-
up
Bankers Association of America,
one prominent St. Louis
has reason to complain
about the ill effects of the
first half of 1942.
will
1,125,184
1,114,711
•
not
In addition to Mayor William %
President
statistician of
Strauss Bros., 32 Broadway, New
York City, is visiting Chicago this
tion
4.6
prominent citizens.
of its dissolution.
of 14%.
Hus|smanii-Ligonier Loss
Visiting In Chicago
NSTA
1,103,164
2,147,108
in
the St. Louis Chamber of Com¬
Nothing of a tan¬
gible nature has been disclosed
regarding possible sale of the corn
products
division
rumored
for
weeks.
Stock recently sold up to
a
high of 38 V2 compared with a
St. Louis Stock Exchange
the
6.1
2.4
which took the
of its most
Thomas N. Dysart, President
low this year
for
2,G52,57i
.
Frank Ginberg Of Strauss
week
3.8
gains
1942
Frank
6.0
1,077,740
increase is
flattening out, it is likely that
these figures will result in de¬
creases before the year is over.
It has generally been a truism
Composed
$1.49 per share versus $0.95 in the
Members
6.2
1,933,932
group
Dee Becker, the
ceding total
$1,824,887
deeply shocked add grieved by
the
recent Glider
accident at
lives
'
over pre->
thousands
that
with the entire
St.
Louis
were
the local airport,
Amount in
pre¬
While the above tabulation shows
Glider Tragedy
of
over
4.0
ducting
town sources.
citizenry
Federal income taxes—
% of inc.)
ceding total
The decline in railroad earning
volume ' by ' our
along
—
% of inc.
$997,895
power
Round-Up." Obviously, this
broadening of its activities lent
strength to the market for the
Company's stock, and within the
past week Anheuser-Busch, Inc.
Capital Stock has moved from 69
to 79 with a substantial buyinginterest being shown by out of
ternity
Indicated
♦Decrease.
The St. Louis investment fra¬
Candy
'
;
•
_
May.
Last
tfnlisted.
National
'
'
>
thousands
June
develop¬
were
Army and Lend-Lease.
Companies whose securities are
MISSOURI
Tel. Central 0838
Teletype SL 84
Presi¬
however,
opposition
Principal Exchanges
Locust
the
by
dent of the Baltimore Stock Ex¬
Members
York
sponsored
This plan is
Exchanges.
being
G. H. Walker & Co.
New
over-the-
all
have
counter securities traded on Na¬
to
Wire
and Providence
York
New
to
idea
the
a
to
urging members
With Month
Ended
1,038,198
April
re¬
aptly put it: "The World's Cattle
May' Well Be Heading For The
second vice-
as
Period
4.1
products
some
123
March
magazine in its August 9th issue
has
president.
Fast and
firm's
this
that
-
D.
February
letter
Louis,
-•
January
attend ^nd
participate in the discussion of
been nominated
12 Months'
Amount in
President of
Security Traders Club of St.
St.
Co.,
&
Income for
Month—
were
primarily of molasses, ammonia,
water, air and yeast, this product
is a development of the AnheuserBusch Yeast Division, and appears
10 offer a new field having tre¬
mendous potentialities. As "Time"
Tegeler
•
-
unusual in
character, no one was quite pre¬
pared for a development as unique
as Synthetic Meat.
More startling
was the news that the product had
actually been in use for some time
ing
St. Louis and Kansas City-in¬
be
L.
SL 456
(Continued from page 686)
Net
Field
search laboratories
to
Garfield 0225
Teletype
-—After all tax reduction—
Anheuser-Busch
Life Insurance and Trust Council.
Bldg.,
2, Mo.
Railroad Earnings Have Turned Downward!
Deaf;
Member of the
vestment
St. Louis
be had from the firm upon
request.
pleasant¬
ther Organization;
ly surprised last week by the re¬
President—St. Louis Corporate lease of publicity on AnheuserFiduciaries Association;
Busch's
pew Synthetic Meat dis¬
Member of the Board—St. Louis covery. While rumor had reached
,
Landreth
A-:;.;. Before deduction for
Hospital;
Board—Big Bro¬
esda General
company
at
■<
Indiana Division.
Director—Beth-
and
Secretary
SOLD
—
may
Louis University; an LLB from the
Benton College of Law and holds a certificate from the Graduate
School of Banking, Rutgers^TJniversity.
He is a past-President of
the St. Louis Chapter of the AIB^
and at present is active in many ilian sales restrictions have been
civic and business organizations eased
slightly.
Pre-fabricated
houses are built by the Ligonier,
among which are the following:
Treasurer and Director of Cent¬
possibilities
levels, according to an in¬
teresting circular issued by J. F.
Reilly & Co., Ill Broadway, New
York City. Copies of this circular
BCS degree from St.
a
attractive
current
and Trust Company in
thur has
•
Schekck, Richter
Federal Water & Gas Company
offers
Mississippi
Officer,
Trust
BOUGHT
Attractive Possibilities
Mercantile-Commerce Appointment
Trust Company, St.
Common
Chicago
L. D.,240
Teletype—SL 486
Power
1950
INCORPORATED
ST. LOUIS 2, MO.
City, Mo.
Common
Electric
Consolidated Dearborn
STIFEL, NIC0LAUS & CO.
Bldg.
Missouri Brevities
Robert
Common
A
6s
1016 Baltimore Ave.
w.s.
City Public Service
Preferred
1890-1943
PICKERING LUMBER CORPORATION
BRUM,
1953
Louis Public Service
St.
COMMON
COMPANY
WESTERN LIGHT & TELEPHONE
Coal
Ben
Debentures
of
Corporation
CORPORATION
GLEANER HARVESTER
•
Thursday, August 19, 1943
FINANCIAL CHRONICLE
THE COMMERCIAL &
690
-
York
City, members of the New
The
Public
Co.
Co.,
this
City.
Copies of
bulletin may be
request from Laird, Bis-
had upon
sell & Meeds
.
National
offer
situations
Radiator
in
Th
Company
an
Bank
and
Trus
attractive
possibilitie:
according to memoranda bein
distributed by C. E. Unterberg <
York Stock Exchange.
interesting
current
National
61 Broadway,
New Yor
Copies of these interestin
memoranda may be had from th
firm upon request.
V.YolumeJ58
THE COMMERCIAL & FINANCIAL
Nunibe^.i20.4
„
Additional Comments Anent Dr. Wright's
Articles On Inflation and Deflation
The ;#Chronicle" recently published two articles, written by
Dr.: Ivan Wright, Professor of Economics, Brooklyn College, in which
the
author suggested
culated
to
offer
to management and investors
the
;
Was
published
July
:
8,
the
and
in
the
issue
our
"caption, *
"When
Comes, Deflation Cannot Be
Behind," appeared in
July 22.
f
As
received
expected,
have "been
comments
numerous
"
Far
issue of
our
be
to
was
opy
bearing
Inflation
regarding the views and
conclusions drawn by Dr. Wright
in his articles. Some of these ex¬
pressions
issues
of
the
others that
in
this
given in previous
were
"Chronicle"
issue
given herewith:
are
DR.
RAY
LYMAN
WILBUR
value
becomes
of
As the
take
Wright
"When Inflation Comes,
on
Deflation Cannot Be Far Behind."
..,
I
.
the
only
we
s
r
e
way
avoid
can
i-
us
o
trouble
is
increase
eral
to
gen¬
control
p r o
,
to
es
selfish
minorities.
.
,
As
the
to
practical an¬
it seems
swer,
to
Ray
Lyman Wilbur
that
me
an
The
more
of
less
the
the
have,
we
-Representative
in
Congress from
New York
I
y
greatly
enjoyed reading Dr.
Ivan Wright's second article on
inflation.
I quite agree with his
.
views.
,
.
1
v.
:
,
v ■
:
■
,
does the trick, especially that part
which
going to banks.
&
conclusion
in
I
reach
in
is
that
dollars,
of
terms
increase
to
A. B. KELLER
;
will
&
reach
have
yet
to
hear
-
of
Ivan Wright.
You may be interested to know
that
have
we
studies to be
have
and
considered
these
well done that
so
acquired
additional
we
copies
have distributed these to
the
McDonald, Moore
Company; and Juran, Moody
Company offered a new issue
any
2.90%##
t The disposal system will serve
46 square miles of territory and
I
find
can
is
along the
argument of Dr. Wright
and
mobile
—keep
quickly to
able
be
pany.
> The
current
subject matter
is
of
importance.
lien
Representative
in
I have read
carefully the article
inflation and it
on
ing.
Hon.
WILLIS
A.
the
was
is
ROBERTSON
in
from
Congress
a
terest
revoca¬
member and
standards
signed to
investors, but
in «which »securities
character exist that
to
applicants
This is
for
and
we
must avoid both currency
inflation.
credit
of
Governors
it
and
if
hoped that a way will be found,
time, to correct the situation#
"In
serious
upon
situation
that
veloping.
to
realities
of
the
to
be
de¬
appears
The
problem
facing
whose responsibility it
everyone
is
face
to
us
administer
laws, rules and
regulations pertaining to the es¬
tablishment
and
conduct of
a
se¬
business, is the prevention
of abuses
inflation
may
we
ultimately be forced into
be
of investors
An
worth
well
as
of
ounce
many
not
am
others
did
feel
pounds of
you
into
Dr.
quite interesting.
realistic.
-My
self
for
.
own
can
me
Vy -y,
view
sums
probable
up
extent.
Wright
are
At least, he is
to inflation it-,
tersely put and
To
cause
the
to
of
undesirables
There
true
of
business.
and
infiltration
an
Insofar
Federal
as
regulatory
successful
in
of
the
any
gage in the securities
task
of
and
extent
business, the
regulating the conduct of
those
so
less
that much
engaged
and
more
our
will
whole
effective.
"I should be very
that
be
until
bruary
e
1939, when he
the
left
se¬
Frank
H.
National
Kemp
busi¬
Stamping Co.
Common
Field's discontinuance.
upon
that
States
conditions
in
still
were
than in distant pastures.
few
past
Mr.
years,
the
in
been
real
of
manager
Latest Information
the
has
Kemp
estate
field,
State-owned
as
Mercier, McDowell
& Dolphyn
income
producing properties.
Members
"street"
His
experience, with
only comparatively few years' ex¬
ception, dates back to the outside
Curb
Market
in
following
City
banking experience which includ¬
ed the handling 'of credit docu¬
ments "covering shipments oh the
four
of
years
tania."
King-Sseley Corp'n, Com.
Leonard Refineries, Irtc., Com.
Federal Screw Works, Com.
discharge from U. S.
Vinco
Corporation, Com.
Graham-Paige Motors
the Detroit Stock
on
Exchange and in over-the-counter
securities until
turned
N.
to
1927
when
C.
Y.
to
and make markets in
he
re¬
R.C.0'Donnell& Company
Members
wholesale
Stock
Detroit,
In 1932, he joined Cray,
McFawn & Co. and
firm in
Building
DETROIT
CHERRY 7040
admitted
was
1935.
Exchange
SECURITIES
625 Penobscot
1929 he returned to
trading.
of
Detroit
INVESTMENT
special situ¬
ations.
In
Cadillac 5752
DETROIT
N. R. F. in 1919, Mr. Kemp went
to Detroit where he was active in
trading both
Detroit Stock Exchange
Bldg.
York
Following his enlistment
1917 and
Buhl
1916,
New
last trip of the ill-fated SS. "Lusiin
Request
on
better
For the
He
was
one
original group of fourteen who*
organized
Traders
the
National
Association
thereafter
serving
or
He
organizing
Security
in
1934
alternate
was
also active
Securities
1935.
He is
Dealers...
National
as
Contact
for
us
up-to-date
information and markets
Traders
Michigan securities.
on
member of
a
the Bond Club of Detroit.
some
join
to
ago
years
Kelvinator
Corporation
resigned the latter
both
nections, where they
were
sues,
and
sales
same
time.
tion
con¬
cision
vice-
respectively,
for
at
Albert
Bradley
.
and Pierce is in charge of pub>
•
and
low
was
the
the
Pre¬
undisclosed
cash consid¬
Miller's
bidder
does
Department
said
that
broaden the
management
acquisition
will
line, which heretofore has
largely automotive in peace¬
•
'
were
Halsey,
Stuart
as
and
follows:
stated.
>.
Company,
National Bank of Detroit,
0.87; Paine* Webber, Jackson and
Curtis, 0.89; Braun, Bosworth &
,
"
Miller
ing
sic
Tool
Company,
Detroit
of
Detroit
&
Michi¬
Inc., announces that the fol¬
lowing members were nominated
gan,
for
various
the
1943-1944
Oct.
fiscal
1, 1943.
offices
year
for
sjc
and
$
Manufactur¬
whose
stock
is
the,
beginning
V
Paul
President:
I.
Moreland,
Allman, Moreland & Co.; Ray P.
Bernardi, Cray, McFawn & Co.
Vice-President: Don W. Miller,
McDonald, Moore & Co.; Jones B.
Shannon, Miller, Kenower & Co.
Ray E. Davis, E. H.
Sons, Inc.; Pierce A.
Secretary:
Rollins
Slate Presented To
Delroil Traders Ass'n
&
Hastings.
Treasurer:
H.
V.
Charles
Sattley
&
Co.;
C.
Bechtel,
Harold R.
Chapel, Crouse, Bennett, Smith &
MICH. — John K, Co.
Any
additional
nominations
Roney of Wm. C. Roney & Co.,
Chairman of the Nominating Com¬ must be received by the Secretary
DETROIT,
Company, 1.09.
V
Exchange
Bldg.
Association
.
0.85;
and the Chemical Bank and Trust
Stock
business
of
time.
revenue
notes,
Sales of Miller have been run¬
maturing January 15, 1944-47.
ning around $175,000 a month and
The winning bid was 0.80.
Precision
about $90,000,
it was
t' Other
bids
$700,000 in
Street
Railway
Buhl
812
firm's
been
Detroit
Members Chicago Board of Trade
Teletype DE 167
largely
industry, manu¬
facturing special tools, jigs, and
fixtures, and also handling certain
types of aircraft production work.
the
T The City of Detroit stepped into
market
of
with the aircraft
lie relations here in Detroit for
;G.M.#\A
of
all
Members
stock
Manufacturing Company
Precision
/A Ay
President
an
Wm. C. Roney & Co.
unlisted is¬
purchased
eration.
Armstrong is now assistant to
Vice
has
outstanding
president in charge of produc¬
the
of the popular
one
Nashand
:
happy to hear
W
Co.
F
Association of Detroit and Michi¬
Co.* 0.90;: First of Michigan, 0.97;
from you in respect to this
prob¬
lem."
&
gan in
effort
'
Private Wires
To All Markets
ted with Field
in
Motors
General
for
as
considerable
also
was
left
Both
agencies
as pos¬
Telephone
Randolph 5625
Motors Corporation.
the
preventing
Building
DETROIT, MICIL
through 1938.
and Frank R. Pierce by General
State
of these undesirables
639 Penobscot
Committeeman
$
•
interest in the rehiring by Gen¬
a
would
#
eral Motors of W. F. Armstrong,
assume
as
sandwiching them in with
s)e
we
that this migration will include
Ex¬
associa¬
to the
better issues.
some
of events it
logical
seem
much
the
sell by
the securities business.
course
nearby communities.
All told,
the Treasurer held
nearly $1,500,000 in the belowpar
bonds which he decided to
I
sible from securing licenses to en¬
,
as
be rather
Fordson School District and other
small
migration
a
SECURITIES
Kemp
t
was
made-up of Grosse Pointe
ance
cures.
with the fact that
witnessing
108% of par with the bal¬
Park, River Rouge, Ypsilanti and
duty, however, to
my
In the normal
are
C. F. BURTON, President
of
105 to
would
nor
bonds
A large part of these
Detroit bonds which brought
were
prevention
prepared
par
$233,356.
as
similarly concerned.
it
have been
currency
The City Bank, Washington, D. C.
articles
for
I be so presumptuous as to offer
specific recommendations to you
many
The
$220,000 worth of above
the punishing and disciplining of
those who have perpetrated these
inflation.
t
tween 85 and 92% of par.
meantime, however, it
desirable if not obligatory
we
coming months avoid
price
$18,000 worth
brought
par.
Garden City and
Lincoln Park bonds brought be¬
of
37.56
the
seems
be
can't in the
brought The least
another;:
is
in
quota
But
par
the previous sale./
over
East Detrbits
v
fully agree with Dr. Wright
a
recognized and appreciated by the # State Treasurer Brake also sold
would
that
■
weakness which has been
a
with
favorable price.
One offering of
theses bonds
brought 58.13 and
applied
Virginia
I
an¬
of'$252,400 were offered to
bidders, the bonds brought
$204,422 or 80.9% of par for a gain
membership.
;
Stock
United
the
22
requires
be
can
of Detroit Stock Exchange
INVESTMENT
f
o
vinced
value
standards of this
no
Members
,
and.
In the fourth sale of such bonds
of
practice de¬
protect the interest of
g
create ample reserves, In
1940, he returned to, Detroit
including 18 months' principal and after residence in Mexico, con¬
of 6%
him
n
members
ness
•r-
of
NEW YORK
Charles A. Parcells & Co.
Co.,
the Detroit
curities
fact that the
a
i 1 d i
u
sufficient to pay principal and in¬
Licensing
of such
cause
"Literally it
back
Representative
The
business, or is to become nouncement by State Treasurer D.
engaged and has not not been ex¬ Hale Brake that the current high
pelled or suspended from a securi¬ bond market is helping the state
ties association or has not had his
liquidate its holdings of sub-par
registration revoked by the SEC municipal bonds.
acquaint
;
-
service
securities
or
contains much constructive think-
a
all
.
"I
■
by
from
(Continued from page 687)
interest requirements.
such as that if.an applicant
yyyVvy/'v $ ••
.*
s|:
for membership is engaged in the.
Also;-of interest was
Oklahoma
by Dr. Wright
secured
disposal
sewage
are
or
DETROIT
Penobscot
B
county has agreed to levy charges
in this very useful endeavor would
from
Congress
be
revenues
furnished-to 12 communities.
Riler Of N&SD Urges
Care In
Parcells &
A, 1938,
,
the net
on
sanitary
abuses.
Hon. LYLE II. BOREN
...
the; bonds''will
with the tide.
move
Member oj Detroit Stock
Exchange
$905,000 of Oakland County, change.
After
leav¬
Michigan,; •southeastern Oakland
County sewage disposal system ing Cray, Mc3% revenue bonds to yield 1.50 to Fawn & Co. in
The
curities
administrative group of our Com¬
Kenower
formula that will "beat the game:"
best
flasT OP MICHIGAN Corporation
of
the level indicated.
I
Miller,
Company;
and
Ra¬
will'slow it; down but
eventually the prices will seek
and
included
Company; Paine, Webber, Jack¬
and Curtis; Waiting, Lerchen
and
tioning
!>
We are eager to have the views
of individuals as competent as Dr.
Company, had
son
proportion to
the rise in the Federal debt.
Board
Vice-President and Treasurer, In¬
ternational Harvester Company
DETROIT, MICHIGAN—Frank
Kemp, known in the past as Trad¬
ing Dept. Manager of Cray, McFawn & Co., has returned to the
securities bus7
purchasing fEarly this month a group headed iness in a sim¬
of what there is to sell. A; by Blyth and Company, Inc., and ilar post with
Increase
of
of
government
debt First
Michigan
Corporation, Charles A.
conduct of
#
Kemp Wills
Chas. Parcels & Ho.
-
been added to the directorate.
Association has authority over the
HON. WILLIAM B. BARRY#
Frank H.
two later, the bank
Motor
coin¬
in
adequate Sales
investing in Government bonds.
£
Ford
timed to
was
power
deal fairly with those who are
r'
or
each
this
unit will be worth
tion, and he. is licensed by the ap¬
Tax is both desirable and inevit¬ propriate State, he is admissible
able if we are to be in a position to membership in the Association.
to
day
'Vice President and Treasurer of
broad
ment respons¬
A
.
-
view and stop
Govern-
The announcement
cloth, which remains the same.it
Money in circulation and bank
measure
Municipals
anni-$—
Liquidating
Corporation for about $400,000.
less.
credit is the yardstick.
take
source,
the
tenth
versary and'; gossip around De¬
troit is that the building was pur¬
taxation,
duction prices
near,
their
bank's
also announced that B. J. Craig,
confident
am
to
the
chased from the First
yardstick stretches, it will
inches
Peoples State Bank.
with
the
tend
I have read with sympathic in¬
terest
the
article
by Dr. Ivan
each inch
more
prices,
Chancellor, Stanford University
cide
^
-1
The
*
the old
stretched, the
and
accommodated
be
can
"'"r
■
that the yardstick is
Michigan
from Detroit in the last month.
news
from
best
second,
issues, the purchase of a new build¬
bank and personnel shifts made up
The Manufacturers National Bank announced that it would move
the Penobscot Building into the building which once housed
cal-
program
a
the bulk of the financial
possible. protection against the effects of
inflation and deflation.
The first of these studies, entitled "Manag¬
ing a Business for Stockholders Through the Vicissitudes of Inflation,"
.
Offerings of several bond
ing by Detroit's second largest
v
;
691
Michigan Brevities
■;y
'
CHRONICLE
mittee
of
the
Securities
Traders
on
or
before Aug. 27,
1943.
Specializing in
Connecticut Stocks & Bonds
enjoy
As
37 years, we are
in a
suggestions to
ment
BANKS
For
-
Public
these securities for over
position to make sound invest¬
INSTITUTIONS
information
•
CNa
Exchange
^U I
R,
BWa
IX
write DEPT. S.
4
.J
for
municipal bond market
In
power
cut
was
established during the
first six months of the year.
stated four
major
utility
panies' combined sales
The
com
totalled
1,146,495,000 kilowatt hours
represented an increase
|
which
of
9% over the previous year,
30.7% over 1941 peacetime
and
sales.
United Illuminating showed the
greatest percentage of increase
in
siderably
and
stock
the
portfolio from $431,459 to
938.
bond
.
Company, subsidiary of the Hart¬
ford Fire Insurance Company, is
accident and cas¬
in
the
United
from the standpoint of total
which aggregated $110,844,-
the largest
now
ualty
company
States
——— assets
846
as
of June 30.
larger,
than
while
Connecticut Light &
Sharp appre¬
of demand
which might be expected from our
huge cash position. However, bu¬
of
;
as
com¬
result
slaughter houses to go out of busi¬
ness.
Similar mishandling of any
\
a
cash
the
mand
factor, post-war de¬
goods and services is
for
expected to be • excellent
The
unprecedented v supply
of cash
with the huge pentup demand to sustain employment
at a fairly high level.
This will
be supplemented by a heavy de¬
mand for ; our products to feed
curb
the
year
premiums
amount ,, of net
written had increased
the
than the best pre-war years.
we
will
have
the
Thus,
second
basic
'
•
.
.
Markets for Dealers in:
adaptability
and
Con¬
and gives statistical data together with brief descrip¬
leading companies with substantial war business and
favorable peacetime prospects.
Am. Hardware
Russell Mfg. Co.
Landers
Scovili Mfg.
Conn. Lt. & Pr.
Torrington Co.
Co.
this Booklet
were
Chas. W. Scranton & Co.
Members New York Stock Exchange
CHURCH STREET,
Bell
York:
CAnal
6-7870
NEW HAVEN, CONN.
Teletype NH
Coburn & Middlebrook
66
PEARL
194
Boston
Hartford:
5-2410
ST.,
HARTFORD, CONN.
Hartford Phone
7-3261
Telephones: New Haven 6-0171
N«w
tor; in our opinion, is one of the
most
important
intangibles
to
in
watch
inflation.
considering
New York Phone
*
HAnover 2-5537
Phone—Enterprise 1850
Bell Teletype HFD 464
duction, such
price fixing, taxes
retard
as
and restrictions which may
incentive
the
to
produce,
commodity price
stimulate
tion.
000
\
One of our
will
infla-
primary reasons for
bringing up this subject at the
present time is our belief that at
least
of the officials in Wash¬
some
ington
are
mitted before the end of this year
in spots
where such action would
the desire to produce.
We also feel that political trends
stimulate
are
such
as
to
that
a
better-
a
warrant
than-even. chance
similar
-
more
to
confuse the issue
philosophy will be carried into
the post-war economy.
At any
rate, it is our belief that such a
presumption should be the basis
of investment and business plan-;
ning for the post-war period until,
and
unless,
the
alter
we
find evidence to
conclusion.
0 Practical
Application:
What
is
then
likely to be the result of
a huge money supply if it is not
to be a
fear-type price spree?
we say, simply visualize a
supply of cash and simply
common sense in determining
Again
huge
use
how it is likely to be
will
be
an
used. There
high de¬
abnormally
mand for all of the necessities and
luxuries, as well as a stimulation
in the development of new prod¬
and
ucts
mand
is
processes.
If this de¬
accompanied by a rela¬
tively good balance of supply, the
period will be entitled to the label
of "prosperity," with the condi¬
tion of individual companies and
being
influenced by
competitive conditions.
This does not necessarily suggest
industries
their
own
flight " from the dollar into
"things," simply because we have
a
a
of the
fear
In this
dollar.
re¬
spect, our condition differs mateterially from the French and Ger¬
man type of inflation.
;
Rather than select a commodity
stock
sents
merely because it repre¬
ownership in "things,"
an
pick out a company whose busi-!
ness will benefit by a high level
of
demand,
whose
competitive
suggest a satisfactory
conditions
profit margin, and whose manage¬
ment is alive to the many changes
that the war has brought in all
phases of economics, finance
social relationships.
Of course, there
and
is another phase
problem which has a direct
bearing on stocks. Consider them
countries did have a rapid expan¬
as
a
commodity; the supply is
sion in the supply of cash, as we
fixed and the demand tends to be
have, but they did not have our enlarged by the huge supply of
natural resources.
Their econo¬
cash. Meanwhile, with the federal
mies depended heavily on imports
debt problems, it is difficult to see
and as these products came into
the countries when exchange rates how the government can do other
than
New Britain Mach.
Aetna Life
diversity of
necticut Industry
209
This fac-
modity price inflation.
,
,
"A SURVEY OF 9 SELECTED
for
that
tally necessary to prevent a com¬
beginning to see the
logic of the above diagnosis of the
inflation problem. We would not
be surprised if some modest com¬
modity price increases were per¬
of
CONNECTICUT INDUSTRIAL STOCKS"
Write
will likewise,/.tend to
supply which is so vi¬
industry
should couple
doing
nine
seen
$771,838.65 for the fiscal
year ended June 30, 1943. After
depreciation
of
$62,744.79 and
taxes
of $534,968.32, net income
totalled $174,125.54 of which $75,000 was paid in dividends and the
remainder added to surplus.;;
its
,
of
levels
We have al¬
how attempts to sad¬
dle
the
meat
packing industry
with
arbitrary
restrictions has
caused
hundreds
of
marginal
ready
suggest a continued expansion in
the supply of cash and thus, we
will still have in h the post-war
-
high
the whole applecart.
All of these factors strongly
ponent of inflation: Demand:
Partially
are
the
even
Anything which discourages pro¬
V
tions
satisfy
to
reaucratic restrictions could upset
and
-
the
sufficient
our
pro¬
duction
projects
commodity or a service will not
period a year ago. . Total proximately $96.11 went into Fansteel Common Stock.
rise if supply is ample in relation
operating revenues of $26,178,043 wages, materials, taxes, overhead
and miscellaneous expenses, while Offered Publicly.
to demand. The impregnable bar¬
showed an increase of 8.3% over
Public offering of a new issue of rier to commodity price inflation
the preceding 12 months, while $1.68 was set aside to pay divi¬
dends
to
stockholders, and the 53,566 shares of common stock (no is production, production and still
there was an increase in taxes of
45%.
Taxes were equivalent to balance, or $2.21 was added to sur¬ par value) of Fansteel Metallurgi- more production.
cal.Corp. was made Aug. 18 by a
We most definitely do not have
plus account.
\ '
;;>, ■
approximately $2.86 per share.
United
States4 Envelope Com¬ banking group headed by Hallgar-, to have a disastrous commodity
Southern
New England Tele¬
ten & Co. and including Blyth &
price inflation even though the
phone showed total revenues of pany reported a 16% increase in
$14,401,691 for the first half of sales during the first half of this Co., Inc., Central Republic Co. cash and demand factors are pro¬
The volume of (Inc.), Paul H. Davis & Co., and pitious to such a catastrophe. Our
1943 as compared to $12,401,649 a year over 1942.
year
ago—an increase of 15.2%. paper products is increasing, and Paine, Webber, Jackson & Curtis. capacity to produce is enormous.
However, the net result was re¬ the bullet core department has The offering price is $19 per share. We did not know how really tre¬
duced
by a sharp
increase in been enlarged to meet increased Proceeds from this financing will mendous it was until we encoun¬
tered the current threat to our
taxes, and the final net showed production demands.
Net -profit for the six months be used to augment working cap¬
civilization. The nation is fantas¬
$3.50 per share as against $4.11
ital.
The
outstanding
common
for the corresponding period in ended July 3, 1943, after Federal
tically wealthy in its supply of
income and excess profits taxes, stock is listed on. the New York natural resources, production fa¬
1942.
was reported at
cilities
and
$339,558 against
(in normal times)
Derby
Gas & Electric Com¬
Curb Exchange and application
skilled labor.
1 V,,
,•
pany's operating revenues were $322,014 a year ago. After pay¬
has been made to list the addi¬
ment of preferred dividends, this
One must never think of com¬
$2,325,275 for the twelve months
tional shares currently being of¬
was equal to earnings of $7.64 per
ended June 30, 1943 as against
modity price
inflation
in this
$2,120,850 for the period ended share on the common as compared fered,
country without giving full con¬
to $6.97 in the first six months of
June 30, 1942.
Consolidated net
The company is engaged in the sideration to our ability to pro¬
1942.
income increased to $390,611, from
duce wheat, corn, cotton, oil, coal,
production, refining and: fabri¬
As
of
June
30,
1943, two
$322,300 a year ago.
Based on
iron, cattle, etc. Nor may we over¬
cation
of
the, metals tantalum,
Bridgeport banks recording in¬
look our tremendous capacity for
146,591 shares, earnings were $2.66
creases in indicated book value
and $2.20 respectively.
tungsten and molybdenum. • Fan¬ fabricating these raw materials
were: First National Bank equal
Eagle Lock Company has called
products, ', nor our
steel is an important producer of into finished
to $12.12 a share as compared
a
special meeting of its stock¬
supply of skilled labor. We must
tantalum, tungsten and molybde¬
with
$11.54 on December 31,
holders for August 27 to consider
also think how a rising commod¬
num
parts used in the manufac¬
1942; and Bridgeport-City Trust
a plan of reorganization whereby
ity price level would tend to
Company
equal
to
$44.35 a
ture of electronic tubes; tantalum stimulate
S. F. Bowser Company would ac¬
our
production
and
share, compared with $43.75 as
quire the company's property and
parts for use in acid-proof chem¬ sooner or later correct any con¬
of the year end.
assets.
For each share of Eagle
:
ical equipment; equipment parts dition of under-supply.
Connecticut
Investment Man¬
Lock, the stockholder would re¬
French-German Fear-Type In¬
and materials for use in electrical
ceive one $25 par 20-year 5% de¬ agement Corporation had an in¬
flation?
If we are to have the
benture and V2 share of common I dicated net asset value of $730,- devices and ignition systems for
proper
conception of what this
stock of Bowser Co.
This latter 120 as of June 30, 1943. This com¬ use in the aviation, automotive country faces along inflationary
pares with $485,583
a year ago, and various other industries; and lines, we must completely destroy
company intends to spend $250,the erroneous analogy of the in¬
000 for the improvement of the and on a per share basis is $4.34 carbide and other / cutting tools
flation experiences of France and
Eagle Lock plant to step up pro¬ against $2.83 in 1942. A substan¬ and dies used by the metal work¬
Germany in the 1920s. The broad
tial appreciation in security values
duction.
ing trades.
■, - * acceptance by investors and busi¬
ness
men-of that experience is
discusses
for
funds for
foreign
loans* although total .expenditures
will
naturally be considerably
possibly
and
ing
SURVEY
that
facilities
and
Supply:
on
doubt
no
brought
about a large gain in surplus and
devastated
voluntary reserves while liquidat¬ and reconstruct the
were
73c a share against 39c for ing
value
per
share advanced countries. In- addition, there will
the quarter a year ago, or a total from
$96.99 - as of December31, be the activity generated by all
of $356,171 against $189,500, re¬ 1942 to $101.46 as of June 30, 1943. types of repairs, renovations, mod¬
The Hartford Steam Boiler In-, ernization and the development of
spectively.
The Peck, Stow & Wilcox Com¬ spection & Insurance Company, in new products and processes.
We
pany
at its annual meeting of recently released figures, shows have herein sufficient evidence to
stockholders reported gross prof¬ that for the first six months of suggest a level of demand higher
ciation in security values
.
THIS
be
can
resources
$1,045,531 over the corresponding component of -inflation—a high
period last year. r, In comparison, level of demand, at a time when
losses
were
Tower's sales were up 9.5%, Con¬
$74,945 less than a price controls may be weakened
necticut Power's
increased 9%,
year ago.
Since the year-end, as¬ by the passing of the emergency.
sets have shown a gain of $1,652,Supply: Now we must turn to
and a gain of 4.8% was recorded
The company is engaged almost 110. As of June 30, 1943, liquidat¬ the supplv factor.- In this,-we will
by Hartford Electric Light.
100%
in
war
work,
and its ing value per share was $51.93, find a vital point in the whole
For the 12 months ended June
30,
1943, Connecticut Light
& greatest problem at present is the having advanced from $44.26 in problem as to whether or not we
snail have commodity price infla¬
Power
showed net earnings of employment situation. Nearly 30% 1942.
of the employees are women.
tion^ of the- wilder type. It is
$2,625 a share as compared with
Out of each $100 income, ap¬
fundamental that the price of any
$2,719 a share for the correspond¬
sales, being up 12.1% from a year
ago,
Restrictions
Watch
There
pre-war
-
$658,- period this most important
Hartford Accident & Indemnity
is still at a loss for
<
make-work
rate.
St., New Haven 5, Conn.
Church
215
Six months' earnings for Yale
& Towne Manufacturing Company
were $1.52 a share.
Earnings for
the June quarter (after taxes)
electric
in the State of Connecti-
high record of sales of
.
1868
Investment Bankers
Rfn je|etype
Bell
basis, thus recording a new high.
the utility field, an all-time <£—
military establishment con¬
a
lower than the present emergency
0 '
INCORPORATED
Established
offerings, the only new issue having been $100,000 City of New
Britain 1% Sewer Fund bonds due serially from July 1, 1945 to 1954
inclusive.
These were purchased for 101.169 or approximately a
0.81%
"
r
Connecticut Brevities
Connecticut
!
:
Edward M. Bradley & Co.
increased
The
75 years
ever
tain,
normal,
..
KFD 564
Hartford
6 Central Row
Interpretation Of Inflation
(Continued from page 686)
government expenditures will un¬ quently, we think, it is completely
doubtedly continue high as the erroneous to use these precedents
budget will include heavy interest as a guide for what may take
charges, funds to take care of re¬ place here.
turning war veterans and to main¬
i•
Insurance Stocks;
:New York, CAnal6-1255
Telephones: 5-0151
pn
wva
Members New York Stock
or
Utility ;•;%;* '?/;
Industrial and
FIDUCIARY AGENTS
markets, phone
or
PUTNAM
■
CONNECTICUT
rating and in many
good post-war prospects.
have specialized in
we
A Practical
v
A
if-.
investment
high
a
instances offer unusually
Thursday, August 19, 1943
& FINANCIAL CHRONICLE
THE COMMERCIAL
692
of the
anything we know of. Those
rapidly deteriorating,
their
had to
phenome¬
increases.
These
th&n continue its low interest rate
internal commodity prices
immediately reflect the
non
in
sharp
price increases did not
stimulate supply. We are not de¬
necessary
pendent on imports.
here stimulate
Rising orices
production. Conse¬
policy, which in turn
ence
the
stock
relative
income
return
with bond yields
period.
will influ¬
attraction
of
cohipared
for an extended
;
.Volume 158
Number 4204
THE COMMERCIAL & FINANCIAL
CHRONICLE
693
The Securities Salesman's Corner Says Rising Living
SOME
SUGGESTIONS
FOR
PLANNING
Dominion of Canada
YOUR
In Low Income
FALL SALES CAMPAIGN
The incomes of.
Groups
All Issues
than 20,depend on
It is now, when the va¬ fixed
low wages, pensions or allot¬
close, that the sales department should
ments, or meager checks from
prepare its ammunition and set up its procedure, for the active busir
Governmental units, are shrink¬
ness months which lie ahead.
/)/,.:.//.J ;■/.■■■/. 7, .* ; 'j ing with every rise in the cost of
Merchandising investment securities unlike many other products
living, the Office of War Informa¬
in other lines of business
depends for its success" upon the manner tion said on
Aug. 13.
in which ideas are based
upon sound creative imagination and are
In pointing this out, the OWI
A sales
organization without
a
definite plan for doing business
000,000
is like the proverbial
ship without a course.
cation season is drawing to a
presented to the proper market.
The firm that handles
of investment and
speculative general market securities
wide list
a
luck
"Nine
and
The first step in
planning
an
of
men
forces
who
persons
also
announcement
and trusts
the law of averages for its sales results, may do some
business—but it is missing the greater opportunities which result
as a natural
consequence of planned systematic sales promotion.
to
million
now
of
more
sons
State
on
stated:
United
*
•
*
The successful securities
salesman, is in
what different category than salesmen in other lines;
He does more
than sell a stock or a bond—he must convince others that their in¬
vestments can do things for them
The day when a salesman could
take
out
a
list
Today, there is
Now
of offerings
a
and people would buy them,
creative selling job to do.
are
to ideas—the woods
ested in
cellent vehicles for study and exchange into more favorably situated
investments. A program designed to help customers eliminate com¬
stocks of companies with topheavy tax burdens is another. Then
to the new industry developments, the plastic, electronic,
mon
we
come
automotive, chemical, air-conditioning field, etc.
Why not set up
four of five "real comers" in such industries, familiarize your sales
organization with these industries as well as the companies you've
selected and bulid your entire campaign around such optimistic and
Or, if
interesting developments.
you
prefer to stick to
some
drawing annuities for which they
had to put away their savings for
many years.
over.
are full of them.
People are inter¬
protecting their principal against post-war depreciation. The
possibilities of inflationary influences are more apparent to serious
investors today than ever before. Post-war reconversion can be made
into a dramatic approach to new business.
The securities of com¬
panies faced with serious problems in this respect would make ex¬
as
"More than 400,000 persons are
a some¬
of the
"Not
all
t
of
V
1
.•
these
people, of
depend- entirely on the
course,
Bell System
By BRUCE WILLIAMS
Champions of free enterprise in Canada got a sudden chill last
week. In their excitement over the
large gains of the ProgressiveConservative
election
a
more
the
party at the expense of the Liberals in the Ontario
Dominion by-elections, they at first overlooked
significant fact. On sober reflection it became apparent that
and
most
socialists.
dian
of
socialists
emerged
little
that
the
gains
to
Backed
in
stop
and
take
real
no
in this country.
resem¬
blance here is to be found in the
in
threat
perhaps
now
the
clearly
shock
of
A
rapid growth
.
.
...
.
Business Life Insurance No!
Subject To Excess
the
wage
adjustments
shipbuilding industry.
The
'h
Profits Tax
voluntary
in
,
Mutual Life Counsel Explains Recent Tax Court Decision
Contrary to the implications erroneously drawn by many busi¬
men from commercial digests of a recent U. S. Tax Court de¬
.
ness
cision
ceeds
men
in
Products j Company case, lif^ insurance pro¬
by a corporation upon the death of one of its key
still exempt in full from Federal income an^l excess profits
the
Premier
collected
are
taxes, John G. Kelly, Assistant General Counsel of The Mutual Life
Insurance Company of New
said
early this week.
Under
the
York,^
//".
;
Mr.Kelly
pointed out, the excess profits tax
does not apply except when death
law,
proceeds of life .insurance policies
subject to income tax.
are
That
cost
to
the
corporation becomes
subject to tax. In all other cases,
Mr.
Kelly said, the death proceeds
fully exempt from income and
excess profits taxes, as before.
are
The
recent
court
decision, he
technical pro¬
tives
from
the
Government
curement
agencies.
includes two
The
pro¬
from
and
the
One / representative
the
one
old
Maritime
from the
Commission/
duction
Board," it
poration
profits tax law, and merely holds
tative of the Government procure¬
for
relief
of
companies, but by
a
cause
This
the situation that existed
excess
that if life insurance
ment for
the
in
was
the
tion,
cases,
way of assign¬
valuable consideration.
court
Mr.
the
decision
Kelly
in
In
such
excess
over
stated.
so-called
ques¬
of
an
proceeds, be¬
assignment, are re¬
quired to be included in gross in¬
such "abnormal income" is
not attributable to prior years for
excess profits tax purposes.
come,
ment agency will
was
have
a
has
vote
in
Commission decisions.
WLB
as
rulings
and
orders
E.
Simkin
of
cock
&
Robert
York
Wilcox
G.
of
long-term
bonds
this
to
ties
_
corporates >ancl
equi¬
continued to follow the mod¬
erate
ihe
downtrend
end
established
at
the
of
previous week.
Although free Canadian exchange
down
was
recently
from
last
peak in sympathy with
the easier turn in corporates and
equities, the rate firmed up again
month's
at the close of the week.
It
seems
evident that in the
pressure on
tion of
long run the
the rate in the direc¬
parity with the U. S. dol¬
lar will increase.
»'
•
;
%
-ft.
•
.
An
./
%
*
•
>
interesting
brokers'
loans
*
"'
•
.
.'
,
.
_
coniparison of
July 31, 1943,
on
with those outstanding in 1937 has
been released by W. G. Malcolm,
president
of
Exchange.
the
Toronto
Total loans
brokers
ber
of
Stock
mem¬
of
July 31, 1943,
reported at $9,100,000, which
are
as
represents .19 of 1% of the quoted
value
of
securities
date
listed
the
on
On the corresponding
1937,
brokers
loans
exchange.
in
amounted to $39,800,000.
Pointing to the sharp rise in
security
prices,
Mr.
Malcolm
"It
comments:
would
seem
the increase in the value of
ities
the
on
that
secur¬
Exchange, without
any-
large increase in loans, reflects a
great amount of confidence on the
part of the public in the finan¬
cial
structure
of
companies in
./•
\
of
,
^
We specialize in
are
the
York;
CANADIAN
Government
-
Municipal
Corporation Securities
New
Shipbuilding Co., James J.
•
McEntee of the International As¬
sociation of
Machinists, and Lucien
national
representative
International
ine
and
and
America
pro-
of
few trades.
on
transfer
Philadel¬
Co., New
Howlett
slightly
the
^Regional War Labor Boards." ■>'
Members of the Commission
continued
quiet market.
Saskatchewans
a
Columbia
Canada."
visions for stay and review by
the
same
required.
Columbia,
Commission's rulings and
orders will have the same effect
subject to the
hampered
growth.
retarded
growing
conditions
continue
satisfactory.
Early apples,, apricots, potatoes
and semirripe tomatoes are being
shipped.
Koch,
"The
are
Maritime
phia, Chairman; Burton E. Oppenheim,
Deputy Director 'of the
WLB, Co-Chairman; C. W. MidPro¬
dleton, Vice-President of the Bab-
announced,
"may consult with the Shipbuild¬
ing Commission, but no represen¬
vision
the
dry weather is
"RepresentativesJ of the Navy,
the Secretary of War, the Chair¬
man of the Maritime Commission
and the Chairman of the War
and
British/
William
stated, deals with
directly from insurance
In
Commission
Navy sat with
occurs, he said, only when poli¬
cies were not purchased by a cor¬
a
rain
operations
Warm,
In
new
group
representa¬
tives of the public, of labor and of
industry.
normal.
Provinces,
V
Commission
replaces
the Shipbuilding Commission)cre¬
ated by the Board last January
and differs from its predecessor in
that it will have no representa¬
'new
below
highs.
,
ica's armed forces, each receiving
,
off
Canadian
in
men
off
were
recent
country created an active market
in issues of that province with
prices steady.
dollars of - 6,000,000 othersteachers, public employees such Weather
Conditions Favor
as
firemien, policemen, nurses * in
state and city hospitals/munici¬
CanadianCropDevelopment
pal, (COjyaty, township and state
Weather conditions have favored
employees, and workers on Fed¬ crop development in the Prairie
eral government rolls.
Provinces of Canada during the
9,300,000
in
and
large
British
the
"The
their
Provincials
demand
\vere
elections will bene¬
Despite the
from
Manitobas
fit Canadian policies in the long
run.
Direct Dominions
Eastern
leftist New Dealers.
the
*
quiet last
close of the week Canadian Gov¬
ernment bonds were selling on a
2 M> % basis as against 2%% basis
for the guaranteed issues.
counterpart
Its closest
>H
was
the two groups to what observers
consider a normal spread. At the
note.
by the CIO and at least
CCF has
*
Guaranteed issues, on the other
hand,
were
slightly
stronger,
bringing the differential between
part financed with CIO funds,
the
*
bit
a
of
Amer¬ week of Aug. 5, although rain is
needed in many districts, accord¬
ing
service"
which
you
offer
to
your
clients,
providing
a
non-elastic
dollars,
are
among ing to the Aug. 12 crop report of
report service, increasing safety of principal through portfolio analy¬
those who, when on furlough for the
Bank
of
Montreal. * Where
sis, an offer of special reports on widely held securities of local in¬
instance, would feel the immediate moisture conditions are satisfac¬
terest, these and many more such ideas can be adopted.
pinch of eyery upward twis.t of tory, 'Wheat, oats and barley are
The next procedure, after you've decided .where ;ypu are and
the .inflation spiral."
'
;
v filling, out well, says the report,
where you wish to go—is to adopt one vehicle and stick to it. Don't
Inflation is a danger to every but in the dry area of Saskatch¬
scatter the shot.
In merchandising securities you don't shoot ducks
ewan
and
Alberta, growth js
person in the country, OWI said,
with a shotgun, it can't be done that way.
You?ve got to use a high
but its most serious effects are felt stunted and yields will be. light.
powered, single-barreled rifle—pick your targets, select the right
The report also indicates that in
by the fixed-income and low in¬
ammunition, and then fire.
Newspaper advertising, in conjunction
the Province of Quebec, grains are
come groups.
\
,./
with direct mail should be planned ahead, and every move should
making satisfactory progress, with
be made with the full cooperation of the sales organization and the
prospects of average yields.
Al¬
men on the firing line.
In regard to the individual salesmen, they
though retarded by rain, the har¬
should be consulted on any proposed plans, their cooperation should
vesting of a large hay crop is in¬
be enthusiastic, and their preparation for the job must be thorough.
dicated.
In Ontario, heavy rains
In fact, a system of bonuses and extra compensation might well
during the past week delayed har¬
be included as a part of the general procedure.
Net week we are
The National War Labor Board vesting operations somewhat, but
going to offer a few tested methods of stimulating sales production
were beneficial to crops generally.
created on Aug. 12 a new six-man
in conjunction with this sort of a campaign.
.•//
The Fall wheat harvest is nearing
tripartite - Shipbuilding Commis¬
sion to handle labor disputes, and completion with.yield and quality
old standbys, such as a plan for increasing income, a security "watch¬
week.
the CCF have caused sober Cana¬
dians
defined,
purchase
fewer
necessities * if
prices continue upward.
So will
real opposition
Dominion.
Being a
wonder
the recent
rise with the rising
living. /Each check will
not
*
The bond market
self-styled party of "militant and
revolutionary socialism," there is
and
of
banner
the
as
party in the
The political exponents
of free enterprise still have time
to put their house in order.
(Cooperative Common¬
wealth Federation) have
suddenly
With
do
the
improve¬
-
voters.
CCF
extreme
costs
under
the sharp
was
of the CCF it is still backed
by
only one-third of the Canadian
Holding out the promise of
plenty-for-all provided by an allwise, all-powerful State, Cana¬
checks
insurance
or
four
important result of the elections
the
strength
of
the<3>
in
ment
coming to them monthly, but the
payments they receive are fixed
Government
Teletype NY 1-920
Canadian Securities
aged per¬
assistance
analysis of the firm's present customers, their preferences as to rolls.
type of investment; such as near term speculators, those who lean
"Another million are disabled
toward "special situations"
having a longer term speculative appeal, veterans
drawing pensions or dis¬
straight investors for income, and combinations of the foregoing. The
ability compensation, or the wid¬
results of this survey should then be
brought before the statistical ows and dependent children of
and buying departments as a guide in the selection of the
firm's of¬ veterans.
ferings for the future.
"Retired and disabled firemen,
The retail merchant plans his fall, commitments
upon orders policemen,
state and municipal
placed in the Spring, and these future commitments are predicated
employees totalling 158,000 are re¬
upon what he knows about the buying habits and preferences of his
ceiving
pensions
or
retirement
established clientele.
This procedure is based upon common sense
pay.
-/V ,•
-"I
fundamentals which have become almost axiomatic in
practically
(.
"Dependent children receiving
every line of business—yet there are investment firms who com¬
laid
through Federal and State
pletely ignore such important considerations, even to the extent that
welfare funds number 739,000:
they have no specific idea of the buying habits of their established
"Fifty-three thousand are blind.
customers and instead decide upon the securities they wish to recom¬
mend by playing hunches, making guesses, and "what looks
"About 700,000 retired workers,
good/at
the moment."
widows and young children re¬
;
The next step in planning a program that will meet with the ap¬ ceive social insurance payments
proval of the individual salesman and help him to coordinate his under the Old Age and Survivors
efforts toward achieving a larger measure of
Insurance program of the Social
success, is to set up a
definite idea which he can use to increase his volume from both new Security Board.
and old accounts.
Street, New York 5
States.
are
public
an
Quoted
—
Incorporated
14 Wall
dependents
serving in the armed
the
Sold
—
Wood, Gundy & Co.
are
"Nearly 2,200,000
aggressive sales campaign is to make
Bought
Union
of
of
Mar¬
Shipbuilding Workers' of
(C. I. O.),
H. E. SCOTT CO.
49 Wall
St., New York 5, N. Y.
WHitehall 3-4784
Tele. NY 1-2673
•
694
country."
Sharing Wealth With Rest Of World Not Required
In Peace Plan, Manna Of Credit Greap Says
Peace plans based on trying to make it possible for more people
enjoy more blessings does not mean that we shall play Santa
Claus to the world, says Henry H. Heimann, Executive Manager-on-
to
leave, of the National Association of Credit Men, in his "Monthly
Review of Business" released Aug. 16.
He points out that sharing
our wealth with the rest of the world would merely make everyone
insure
;V
"We cannot be blind to the sit¬
the col¬
of the conquered
that permitted the
uations that gave rise to
of
lapse
some
countries
of
rise
or
within
dictators
Fascist
borders," the credit chief
says.
"Unless these causes are
studied and sensibly cured, there
their
can
of
be
a
no assurance
century from
that
now
a
quarter
we
may
a
happy and comfortable
of life.
The history of the
world shows that the only way to
way
build
that state of life
in
an
en¬
during fashion is to earn it, not
fall heir to it.
ditions
were
If these ideal con¬
not the rewards of in¬
dustry, decent living, decent think¬
ing, then there would be no solid
basis
upon
which
civilization
might rest."
"We must seek an after-<$>not be right back in this same
In
discussing post-war plans,
which will elim¬ and luxuries. We may be called situation.
Mr. Heimann pointed to impor¬
upon for some financial help but
inate Fascism, Nazism and dicta¬
"When I say the situation should tant
problems which
must be
assistance should be
only
tors and at the same time teach such
be cured, I don't mean a perfect solved within our own nation. He
secondary to the general program
the people of oppressed countries
mentions two of these points espethe oppressed state is to be insured. No one can
how to acquire more necessities for rehabilitating
poorer.
the-war program
dally-—the great increase in our
plant capacity and the importance
of working out a procedure for
settling war contracts which will
give American industry an oppor¬
tunity to start shortly after Vic¬
tory Day on reconversion to civil
production which in turn will con¬
tinue a high percentage of our
present employment ratio., '
"Plant capacity in our country
increased,"
Mr. Heimann says. "The problem
has been tremendously
at the close of the
of distribution,
in this country
will
war
b6
one
production that might be
pre-war average will be
effected in the post-war period
since
a
called
a
These deli¬
with much less labor.
problems of adjustment must
cate
in
met
be
realistic fashion.1
a
If
attempt to meet them by ar¬
tificial means such as limitation
we
of
production per hour or limita¬
tion of the utilization of
then
of
victory
our
machinery
shall defeat the purpose
we
as we
will deny to
families the result of our
productive capacity, and we will
be
handicapped in our
highly
many
international
competitive
will
"There
between
be
a
cessation
the
trade."
critical time
of
hostili¬
resumption of normal
unless we have agreed
ties and the
business
the proper
on
procedure for han¬
dling terminated
war
contracts,"
Mr. Heimann. "Expeditious
adjudication or at least large im¬
mediate tentative settlements will
says
wctA tAtee tokfr
be
in order
be able to
period from
to the job of
necessary
ness
may
that busi¬
speed the
transition
M6Ui>
tAfohift"'
war
duction
supplying
pro¬
civil needs.
our
post-war problem can be
into the short range and
"The
divided
the
longer
range
requirements.
solu¬
When Victory Day comes, a
wear
this pin. But they
KttP/NG
will help to mold
should recognize
the destiny of America
men
but it takes more
than the march of time to fit them for
r*
-
a
\
,
VVV'.V.
'.V*
man's size
.;' C.\
•.
" :i
up
life insurance
own
wherever they
may
to take
leave off,
SS'.'-^A-S '.'..Vv
and complete the plans that
job. It takes milk and
;;rSi-; S ■i
laid
bread, clothes and shelter, medical
so
they
ilS'S"SSMS'-SSSMSS:
well.
Completing plans that must de-
and education. It takes- money
care
...
with
war
pend on years and money has been the
month.
contractors will play a
major part in what our
heavy as it has been in England.
"All in all it can be said that
point of view
small business has
not been borne out by the facts
and it is questionable whether it
will be. Much credit is due to the
resourcefulness of many enter¬
the earlier alarmist
with respect to
prising small business
who despite the war
found
a
way
Mexico To
to
a
some
finish the job
business of life insurance for over a
work and sweat,
good living for their children,
give them
But
men
-
century,
fair start in life.
£
e
,nsunaricT
Springfield,
"
why
Bertrand J.
company
Massachusetts
4 <<
yearly.
financial
circles it was ex¬
plained that the decree had been
made possible after the United
States had agreed to rescind its
fathers do not live to
for their children. And that is
in
advices Aug.
11 to the New York "Times":
The
press
published today a
Presidential
degree empowering
the Bank of Mexico to buy the na¬
tional silver output, which is es¬
timated to be about five million
In
that they set out to do
Keep Silver
cable
City
pounds
to eain a
why
executives
conditions
to survive."
following was reported
The
Mexico
That is
domestic
be when the war
has finally ended."
The
credit
executive
pointed
out that while there had been con¬
siderable uneasiness over the fate
of "small business," the decline in
the number of business organiza¬
tions in this country since the
war
started
has
not been
as
conditions may
have
every
that this item of
for prompt settlement
providing
§||||1#W||
Babies grow up,
the coun¬
try's welfare at heart should give
thought and study now to work¬
ing our a fair and equitable ter¬
mination procedure and the gov¬
ernment
of
the
United
States
in
who
organization
nation that has
the
in
business and industry, the tiny tots
Every
government.
If#
problem
largely in the hands of the
rests
You wouldn't take them for leaders
short range
the
of
tion
— r
Perry, President:
agreement with Mexico whereby
the latter pledged to export its
surplus silver product to the for¬
mer. The Bank of Mexico said the
decree would enable Mexico to
use all of its silver production to
satisfy the people's increased de¬
mand for metal coins, which until
a few months ago was light. Since
the Government issued bank notes
of
1
peso
each earlier this year
there has been steady
hoarding of
coins, which has reduced
the metallic circulation consider¬
silver
ably.
To
ease
the situation, the
bank announced that it was issu¬
ing bronze coins of 20 centavos to
replace silver coins of equal value.
I
Volume 158
Number 4204
THE COMMERCIAL & FINANCIAL CHRONICLE
Post-War Exchange
Stabilization Reviewed
It is to be hoped that these ob¬
jections will be found remediable
and not permitted to
prejudice the
designed to
services the plans are
render.
John H. Williams
(Continued from first page)
H.
Williams,
Vice-Presi¬
even
dent of the Federal Reserve Bank
given credit in Keynes' bancor health. Conversely, he shows that
for a part or all of these balances relatively small sums lent later
then their right to buy from us to Germany by the Dawes Com¬
tive discussion of the Morgenthau
are
on
credit will be increased by
the
amount of this extra credit.
The
official British
the
come
sug¬
paper
pivot
world."
of
of
Here is another
ity that
future
the
the
government
concerns
possibil¬
How much
us.
arrangement
an
gests that "The Union might be¬
economic
mittee and to Poland by us under
might the Union have at its
disposal and discretion for these
money
whereby
Polish
spending of the proceeds had to
be ratified by our agent, Charles
of
New
York/gives
an
informa¬
and
Keynes plans. He notes with
approval the contrast between the
effort
being made to plan for
with the lack of planning
now
peace,
in the
last
His
war,
belief
may
be noted in passing that these two
plans look "fundamentally toward
a
stable
exchange
system
as
against internal monetary stabil¬
ling the necessary
forms in taxing and cutting down ity."
Peter, F. Drucker, whose
government expenses and curbing ideas appear later in this paper,
S.
Dewey, sent there for the
pose,
paper
wider purposes?
If indebtedness
under the plan reached 20 billion
effective
were
internal
But
pur¬
in compel¬
internal re¬
issues.
money
disagrees
//'■;
reforms
on
this point,
Mr. Williams touches
not
are
currencies scarce by refusing to out
abstracting from surplus coun¬
part *with them for purchases of tries any funds"—at least none to
goods abroad.
Automatic depre¬ speak of—"It would be
wrong to
ciation
by, "untied"
currencies say that the American plan is de¬
constitutes
a
powerful, counter- liberately
contractionist; but since
weapon
in such cases
by
the it asks all countries to make their
debtor.
John
larger.
For if nations own¬ for "stabililization" after the last
ing "abnormal wartime balances" war without producing economic
695
on
a num¬
ber of difficult technical
prob¬
wholly neglected by the Keynes
dollars, then, with debtors paying plan which provides that the Gov¬ lems. He believes that movements
of bancor or unitas will "affect
over
1%
and
creditors
(being erning Board may recommend "in¬
fewer) presumably paying nearly ternal measures" after a member bank reserves in precisely the
2%, the Union could receive an state has borrowed up to half its same manner as the movement of
gold under the gold standard."
annual income of some 600 million
quota. The American plan permits
But the influence of movements
dollars,
a
substantial
sum
if its Board to place conditions on
of gold is not wholly predictable.
cleverly employed. A gross debt further sales as to any
country
But, in the long run, contributions to the fund before
depreciation
would any of them receives
anything
prove as ineffectual as deflation back it might well be
contraction¬
in forcing goods upon a stubborn ist in
effect."
creditor.
Nor, in the immediate
As'to the gold
standard, "The
postwar period, with production
system must not be as autocratic
facilities in chaos, can even depre¬
in its effect
probably,
ciation
create
for
war-torn
rope, goods which
us
to balance its
that
this
however
accounts.
particular
upon national policies
Eu¬
real
any
So
Mr.
question
is
that
appreciation.
would
bloc,
ever
,
As
for
credits and debits will not be
generalized. Measures will be recom-
example
problematical."
is
Under the Morgenthau plan, however, "Currencies will be sold to
meet the adverse balances of
particular
countries.
International
consent to it under any
circumstances
fluctuating
envisaged
i06nger
upon the debtor countries."
Not by Lord Keynes at
any rate,
well have. But whether
may
farm
n0
an¬
con¬
ingly,
ex-
under the conditions of boom such
as we
as
that the sole responsibility for restoring the balance o{ payments
raised
of
Appreciation by the creditor, he
thinks,
"would
seem
feasible, if ever,
our
or
'should rest, harshly and damag-
large
Williams
change
standard,
| freely.» «It is
prove
cure.
Another
gold
archic in its effect upon world
ditions as exchanges
'solution,"
helpful: it might
the
as
ship to
can
short periods, would not be
over
by
it
mended by the
!
secure
governing body to
desired changes in national
of curbing the over-
balances of payments, but the onus
This we saw in the late '30s when stimulation of gold mining result-! will rest, as in the past, upon
of 20 billion dollars is not as ex¬ which is
using its quota too rap¬
treme
a
than creditors."
figure for world dis¬ idly. And the Canadian plan per¬ Secretary Morgenthau "sterilized" ing from excessive prices for gold debtors rather
a
general exchange appreciation The "Ecbnomist" goes on to reequilibrium as might be thought. mits the Union to suspend loans the inflationary influence of gold
imports on bank reserves by the by all countries should probably cord that,- in the debate before the
Our unwise trade policies before as to
any state which is
the
war
accumulated
20 bil¬
over
lion dollars of largely useless gold
making
improvident
These
of
use
the
loans.
the
proportion to net
prejudiced at
operations
of
time by
any
credits.
Assurance could thus
be
the
plan we gained of pressure on the borrow¬
could withdraw from it only after ers
both to budgetary righteous¬
a year's notice
(2 *years under the ness and to use of funds for
pur¬
Morgenthau plan and 30 days in poses productive of
foreign ex¬
the
Canadian)
during
which change.
periods our interests might be
To argue that exchange fluctua¬
further
prejudiced.
Hence
the
tions are mere symptoms would
longer periods seem objectionable.
seem
-
»
This
is
plans.
not
They
helpful.
misused
to
condemn
intended
-are
But they
and
these
this
to
harm
can
fact
be
us
should
if
be
understood by us.
Four outstanding discussions of
these plans will be here reviewed:
First, that of Benjamin M. Ander¬
son
in the "Chronicles" of May 13,
20, and 27; then that of John H.
Williams in "Foreign Affairs" for
July will be considered, followed
by a British viewpoint in the
"Economists" of Apr. 10, May 1,15
and 22, and finally that of Peter
F. Drucker, with his distinctive
point of view, in "Harper's" for
July.
Benjamin M. Anderson
Between
1920
his
and
recent
transfer to the
versity
Mr.
faculty of the Uni¬
Southern California,
of
Anderson
earned
an
excep¬
tional reputation as economist for
the
Chase National Bank of New
York
and
editor
of
Bulletin."
Economic
"Chase
the
His
criti¬
to
fund
the
rule out all
operations
stabilization
even
forbidding
ironing out of seasonal fluc¬
tuations in exchanges.
common
practice.
Yet this is
Nor will
com¬
plete budgetary virtue be possible
to
many
hard-pressed
debtors
after the
may
get.
Our own rich country
war.
be tempted to exceed its bud¬
Finally, in his just emphasis
the need of
on
imposing reforms
borrower, Mr. Anderson
forgets that, the really major ex¬
change problems after the last
the
on
war
those
were
lenders.
final
For
the
in
word
caused
by
lender
has
such
matters.
the
the
The
borrowing nation can strip itself
of foreign exchange and gold and
can
tax heavily and balance its
budget and can force the deflar
tion of wages and
prices and
em¬
ployment in order to make its
exports attractive and maintain
its
solvency, but if, after it has
all these things, the lender
receive the goods, the
borrower is helpless. To pay the
done
refuses to
cisms of the Keynes and the Mor¬ lender the borrower must have
genthau plans are penetrating and lender's money and it cannot print
that money.
substantial..'> ;■■
J
3.
He attacks the provisions for
1,
A still
more
serious criticism
"abnormal wartime by Mr. Anderson is that lending
balances." The precise nature of nations, under these plans, lose
the British part of these balances incentive to see, at their personal
seems
in dispute.
Mr. Anderson risk, to the solvency of the na¬
emphasizes the extent to which tions to whom they lend.
It is
they arise out of shipments of theoretically possible under these
gold from Scandinavia to Eng¬ plans for Great Britain, for in¬
land for sanctuary, gold which stance, to sell vast supplies on
England has converted into sterl¬ credit to a nation with a very poor
collect
ing and cannot therefore now re¬ credit record—and then
turn,
The
"Economist"
insists through purchases of goods from
us.
We, of course, in our turn,
that, for practical purposes, they
dealing with
can
said
be
to
consist
of
sums
owed
by England for war mate¬
be
stabilized
the
proceeds
of
open-market
rials,
to
certain
Canada
India
and
neutrals.
Mr.
and
Anderson
a
race
could
ing forced
develop to
as
escape
be¬
the last creditor, to
owed her
Irresponsibility as to the qualixy of the credit issued under the
plans could probably be partly
met by a provision charging the
for the amount
bancor
land,
would
collect
her
enable
British
Norway
debt
from
to
us
in
goods. This seems a reasonable
objection pointing to some other
arrangement for these balances.
2. He
also claims that these
plans, in attacking currency dis¬
orders, are attacking mere symp¬
toms and not the disease itself,
and he
loaned
tween
points to the fact that we
Europe $6,000,000,000 be¬
Nov.,
bancor debts of any nation finally
declared in default to the accounts
of
those
nations
which,
balance, had lent it the
on
net
money,
in proportion to their loans.
But
further right to limit quotas
the outset in the case of na¬
some
at
tions
with
bad
would appear a
1918, and Oct., 1920, of these plans.
bonds
own
the
credit
records
desirable feature
and
intentions
of
individual
gov¬
ernments and central banks as to
handling the gold are known
detail.
some
able to
Williams, by
position, should be
speak with authority both
unitas
to
as
handling
and
of
One
gain
bancor
will
here
reserves
as
to
bancor
withdrawals.
bancor
bank
in
Mr.
of his
reason
own
and
that
supposes
increase
while
will
assets
our
credits
bank
decrease
decrease
of
our
If
plans.
As
to
however,
/ Europe,
-
currencies
uniform
this
and
House of Commons
are
of
these
appreciation was
any
simultaneous
,
no
harm would be done the farm bloc
or
on the
plans,
cheer was produced both by Sir Kingsley Wood'
and by Mr. Pethick Lawrence, by
"The nearest to
a
other industry except those
up with gold mining. (R. H.
authority and one infers
that borrowing by foreign debtor
countries
against their
bancor
quotas will not be permitted to
declaration against
diminish
their
reserves
nor
will
sumably, operate to increase these
Such deflation
reserves.
infla¬
or
up
its mind."
his analysis see F. D. Graham and
decorous British
imperturbability
Whittlesey, "Golden Ava- with which they are put out. We
lanche,"
Princeton
University own two-thirds of the world's
Press, 1939, pp. 158-161).
monetary gold stocks. A disconBut, once world currencies had tinuance of monetary use of
gold
been tied to gold at new values
could
make
these
relatively
C.
R.
after
the
war
then
plans
ciation
by
under
alone
us
of these
any
exchange
any
worthless. Yet here
appre-
would
we see
prom-
inent subjects of the British Em-
truly
pire, the world's largest producer
tend
to put our agriculture at a 0f
gold, cheer at mention of the
competitive disadvantage and thus abandonment of the
gold standard,
run into serious political difficulThe French also plan to end rigid
ties.
The political weight of any ties
to gold.
Why this European
argument that unilateral appre- hostility to
gold9
ciation of the dollar by us would,
The
ts underlined
suggest a
explanation.
Probable
by
other
ly
in
countries
in
S wSd When, in
the wodd
s^fmulaUng^a further
jf
by
1+it;
urn
™
ly approximate
zero.
An
essentially British point of
hence
and
one
foreign g°ods and thus compelled
i foreign nations to
pay their debts
In/n^acincflv in ovvlrl inc+oaH
increasingly in gold instead
goods, the effect, under the
normal
operation
of
the
gold
standard, was to deflate credit and
prices and wages abroad. It should
.
to
us
of in
also
The "Economist"
view
1922, our Fordney-Mc-
Act raised tariffs against
healthy expansion of gold mining,
to make the gold standard still
more unworkable and possibly de¬
stroy it, can be left to the imagi¬
nation. Such weight would close¬
under the
plan, will, accordingly,
be initiated rather through the ef¬
fects of employment or unemploy¬
to
tion, Carnegie Endowment for In-1
The sensational importance to
ternational Peace, Oct., 1937," pp. us of these
pronouncements should
673-5.
Also, for a refinement of not be lost sight of because of the
arises in debtor countries
as
return
a
of gold standard,
It is evident that, on this point,
British public opinion has made
Brand, "Gold: A World Economic
Problem," International Concilia-
greater
repayment of this borrowing, pre¬
a
any rigid form
any
tied
the
"Economist" must speak with the
tion
when
under
reserves.
valuable
to
is supplied by the
have
been
to
inflate
them
here, thus making cheaper foreign
goods look relatively more attrac¬
tive in our expensive markets and
finally enabling foreign countries
"Economists"
to surmount our new tariff walls
When it comes to controlling of April 10, May 1, 15, and 22.
and achieve the trade equilibrium
inflation, Mr. Williams
prefers Space prohibits full review. "It is
the tariffs had prevented. But we,
gradual relaxation of internal and better to name names," says the
by sterilizing gold and keeping
external exchange controls to the "Economist," when "surplus coun¬
our prices stable through the 20s,
means provided by the plans.
His tries" are referred to. "The cen¬
refused to do our share and a
difficulty of the post-war
position here seems to approach tral
much heavier burden of deflation,
that of the French.
But inflation, years will be to find means by
or as the "Economist" calls it, "the
like a fever, is itself a curative which the rest of the world can
whole responsibility," fell upon
process and should not be wholly meet its obligations to the United
our debtors.
For a time the situa¬
and
balked.
Furthermore any infla¬ States
buy the
American
tion
was
tided
along by loans
tion under the Keynes plan in the goods it
needs."
"One country
abroad by us but when, in 1929,
United States or other creditor which, to judge by the present
these loans ceased, the tragic im¬
countries would tend to attract indications, will have rather more
ment than from the side of money.
us
competing foreign goods and thus
itself but help bal¬
ance
our
budget
through
the
than
not only cure
added Custom's
revenues
involved.
us
hold the bag on the accumulated
bad debts of the Union.
by England, without debiting Eng¬
its
(See Norman Crump in
"The Foreign Exchange Armis¬
tice," Banking, Nov., 1936).
Wholly confident prediction as
to inflationary and deflationary
effects
of gold movements
can
consequently be made only when
ing goods from
that giving Norway, for
instance, even temporary credit in
objects
in
payment
notes.
Natural law will thus take
else and
initiated
device of paying for the gold out
could pass on the credit by buy¬
someone
a means
of
provisions, however, might
sales
of Treasury bills, instead of
and, if continued after the war, be strengthened and control in the
paying by issuance of gold cer¬
might easily, with demand for matter, which, as Anderson
points
tificates. Similarly, a loss of gold
goods converging on us, threaten out, now rests in the hands of the
need not be deflationary if the
us with a similar sum in useless
borrowers, might well be vested
government selling the gold takes
bancor.
Should we think our in¬ in the
lenders in
terests
,
if
intend
we
will let it.
we
to
submit to
If
we
care
of
do not
natural
laws
had better not, as will appear
later, flirt with any of these plans
except that of Mr. Dewey.
Another remedy offered by Mr.
average
difficulty in paying
the United
its international way is
Kingdom." As to the White-Morgenthau plan, "In this plan it is
not
the
total
fund
but
the
pro¬
portion of it in dollars that will
in
count
period when the cru¬
cial
deficiency of every trading
country will be a dollar shortage."
These
a
show
extracts
rencies in what he calls the
plainly the
foreign opinion that, at the out¬
set at any rate, the principal ser¬
vice of the plans will be to finance
countries
purchases from us.
Williams is that of stabilizing cur¬
"Key"
permitting lesser
countries
to
depreciate.
This
seems only another
way of insist¬
ing
the fact—which should be
widely insisted on—that the
on
more
large
the
while
creditor
"key"
tion and
can
artificially
own
to
countries
do
hold
exchange stabiliza¬
block it and force
high
price
for
an
their
currencies in terms of those
abroad
if
they
make
their
own
Now
as
to
the
♦
difference
in
British eyes
can
between the Ameri¬
and British plans. "The Amer¬
ican
plan would seem to require
from every country specific ap¬
propriations
"The
of
British plan
public
is
funds."
deliberately
balance
pression
ble.
at
the
hands,
currencies
evils
and
the
lesser
the
gold
left
as
a
de¬
"untied"
accepted
as
steady procession.
a
intentions
further
of
bottom
politically impossi¬
countries threw up
was
Foreign
their
in
unmasked,
was
deflation
to
use
of
in the matter become
of
two
standard
Until our
our
power
clearer, for¬
eign countries are unlikely to be
eager to retie to gold. Nor, if we
continue to make gold an unwork¬
able currency base, is there any
overpowering reason why the rest
of the world should ever return to
it.
There
are
metallic bases
have
probably
other
available. We
now
practically destroyed
of silver and
monetary use
destroy the
use
the
may
of gold.
This should make us stop and
expansionist in
think. Not only does it throw a
object; it would put funds at the
(Continued on page 696)
disposal of deficit countries with¬
and
confessedly
THE
COMMERCIAL & FINANCIAL
696
Post-War Exchange
SUMMARY OF THE
Stabilization Reviewed
(Continued from page 695)
huge
the value of our
doubt upon
gold hoard, but it deprives the
world, temporarily anyway, of its
!'
always be a danger.
sort of elastic limit to
By DR. A. PERREN
such that
evolutionary
return to normal
normal
means
of
determining
'finally becomes impossible and
when the quantity of money is
revolution gives the sole way out.
adequate for the work money has
One hopes with Mr. Drucker that
to do. The problem of equilibrat¬
I evolutionary means will still be
ing exchanges, like the problem of
possible here when the war ends.
bringing water to a common level
But Mr. Drucker's main concern
among a lot of connected tanks of
various
sizes, can properly be !is the danger of deflationary un¬
viewed as secondary to that of employment caused by currency
difficulties.
"The focal point m
having the right general level in
the tanks when
But,
brated.
international economic
all
they are all equili¬
however well the
created unemployment; for
to restore the inter¬
national balance was by deflation,
—instead of our mismanagement and that meant a contraction ot
production."
"The most encour¬
of it—into wide discredit.
aging, feature of the Keynes and
Peter F. Drucker
White plans is that they agree.
Peter F. Drucker is a member "Neither intends to restore the
of the faculty of Bennington Col¬ old automatic subordination of the
internal to the external currency.
lege and is included here because
Keynes' plan, thinks Mr.
he seems to represent what may Lord
Drucker,
an
the generous
of
cause
leading
in
it
corded
White, U. S.
Monetary Expert,
Assistant to Secretary Mor-
American
Nature of Plans
*
Keynes'
enough
But
announced formula requires
to produce
full employ
what is -'fun employment ?
Roosevelt might
D.
Franklin
differ, from
Coolidge on the P01^,,'o
had "full employment ?
Calvin
we
Britain
currently
are
We
and
We ana
spending enormous
these produced
"full empldyment," and, if so, when did
it happen
when was the line ciossed.
No
one
has told us.
Will political manage:
merit of money give us
the
on
fnms
under
stability
be
so
Furthermore
operation in 1933
rmveinment of
At
union
cost
wage
T ie™
such
That
ment debt
end
Basic
Principles
will
to
enough
veterans
The
ously
be
asserted only
extra billiorv dollars was
inflation when paid
bonus in the election year
as
cause
a
in fact, never
put into execution by the New
formula
was,
Deal
sadly described the result as
gold standard on the booze
than the managed money of my di earns.
Attempts
to fix the quantity of produc¬
and
Kevnes
"more
like
a
tion in other
iled.
always failed.
ormuia" yet
upply and
foH
the economic world.
provided as a substitute
to
as
assure
voluntary
the
back to' 1921, of a
price boom, that led us to sterilize
gold as a means- of stabilizing
prices here.
But this refusal on
our part to let our prices rise was
just what put "the sole respon¬
sibility for restoring the balance
of
payments"
"harshly
and
damagingly upon the debtor coun¬
tries," leading them to prefer
fluctuating exchange rates to fluc¬
tuating price levels and to go pit
fear,- dating
.—y, *•
,
...
t
gold, thereby upsetting exchange
.
(Continued on page 700)
to submit to a certain
Although members would have
international discipline, the
stabilization agency could
all decisions of the Board
sovereign power of a nation would not be affected, since the
not intervene in internal affairs of a member country and
would
have
Governments.
ratified by the interested
to be
Stabilization of international currency
values by establishing
conditions under which-
payments between countries, arising out of trade and/or financial transactions, can
be balanced, thereby helping to stave off economic chaos and collapse after the War.-,
These conditions would include: reduction of foreign exchange controls; elimination
creation of an
multiple currency categories;
furtherance of exports.
agreements, blocked balances and
of bilateral clearing
international credit system for the
that agreement will be
The three plans presuppose
reached on the relative values
before a definite plan will be put in operation.- The meth¬
of establishing these values and of fixing the rates vary, but each Plan provides
of the different currencies
ods
the rates, if and when necessary.
procedures for subsequent changes in
agencies would confine their
The stabilizing
dealings to central banks and fiscal
agents of governments and would not interfere with existing institutions and banks
engaged in international trade. They would, however, cooperate closely with separ¬
ate international investment institutions, which might be created in order to take
care
of long term loans
for Relief and Reconstruction purposes.
desire—original or
could be invited subsequently. Should exenemy States be asked to join, special conditions would be applied to them.
The Plans provide that a member has the option of withdrawing from the agency,
by giving previous notice.
This would range from 30 days, for a Creditor Nation,
under the Canadian Plan, to one or two years for a Debtor Nation, under the three
All United
and Associated Nations
would become—if they so
members; other States (Neutrals)
charter
Plans.
the
In
same
way,
a
member might be suspended
for non-fulfillment of its ob¬
ligations.
DIFFERENCES
An
Stabili¬
international
An
international Clearing
Capital $5 billion, consist¬
tions
capital, no contribu¬
members of Gold
No
ing partly of Gold, partly of
local currencies and/or gov¬
states.
mum
*
Participation
limited
to
maxi¬
a
would depend
country's holding of
of 25%,
a
national income.
Initial de¬
posit 50% of quota.
by
Participation in terms
of
(see below) in form
Bancor
overdrafts
of
international '
n
Governments
opened
directly
Capital $8 billion.
Total
increased to
billion
by
mandatory
short term loans in
currency
of
to
50%
or
Quotas to be en-1
tirely paid up: 15% in Gold,
balance in national curren¬
Time
extended
to .
Member
State's cies.
countries having less than .
foreign trade dur¬
in Gold or
ing (say) the last 3 pre-war $300 million
exchange.
Quotas
years.
Quotas could be re¬ foreign
based on international trade,
vised annually.
national income, Gold and'
each
of
average
foreign exchange
<<Unitas,,i==
The
a
unit of
(Bookkeeping
137V2 gr. of fine gold, equiv¬
Devices)
alent
to
■
$10
present U.
S.
The
The
value in Gold
of the
Unitas would be unalterable.
The value
currency
of
of the internal
each
member
country would be fixed in
terms of Gold or Unitas and
"Bancor"
= an
inter¬
unit based
combined credit of
national clearing
ori
the
States, fixed,
but not unalterably, in terms
the
money.
domestic
of members, up to
their initial sub-:
scription.
through Central Banks, rep¬
resenting the relative value
-
Monetary Units
Ex¬
Assets could be
$12
other Assets.
or
ernment securities of mem¬
A
change Fund.
Union.
zation Fund.
quota,
to the
"external to us. So
that, from the far side of the
Atlantic, it would have been cor¬
rect to say the "internal
were
subordinated to the
external.
But from this side of the Atlantic
the opposite was true. It was our
,
of membership will be
wholehearted cooperation of the various nations.
the benefits
the principle that
The Plans are built on
such
of member nations.
of Trade and of payments
Balances
British but
lines by arbitrary rules' have
There is "no satisfactory! There is "no satisfactory
demand in
in the relative values of na¬
of world trade and injurious
to friendly international relations.
Each plan attempts to reduce competition 'to a
minimum by sponsoring policies calculated to maintain a necessary equilibrium in the
ternational payments and its
A single
reckless
rehabilitation and
currencies
sub¬
*lt^ut ^"
by the veiy
international Relief and Reconstruction
it be expected to solve domestic prob¬
proposals recognize that competitive changes
are detrimental to a sound expansion
The
tional
gold and foreign exchange,
the magnitude of the fluc¬
tuations in its balance of in¬
$«,000.000,000 yearly.
an annual
ncrease ^govern
would have "primed the pump
compromise
July 12, 1943.
on
have emphasized
Governments
on
aPPalhentl| Ja^
V plan
the highly tentative and provisional
character of their expert's plans and have declared that they are not committed to
the principles or details of the schemes. The purpose of the plans is to provide a basis
for discussion by the technical experts of 37 allied or associated nations invited by
the British and American Governments to participate in conferences.
three
All
sumption that the "internal curiency is necessarily subordinated
by gold to the "external currency
seems
a mistaken
one.
Bntish
the gold
improbable.
>
general internal economic
such as post-war inflation and
readjustment.
';•■:/
,
bv the Federal
over 13,000,000 unemployed.
scales this could not have
sound enterprise
substitute for necessary
a
as
ber
if put- into
J. L. Ilsley as a
requiring long term loans; nor should
demand under a metallic
standard.
In fact the Drucker-Keynes as-
than
revived
flation
would
employing
the
reauired
under
seems
most
the formula,
It
standard''
considered
lems,
"repeatedly emphasises
price levels, which were
ordinated," are "internal
the Exchequer.
Finance Minister
sented by
that Currency Stabilization is only one of several im¬
international economic problems which will have to be met after the War.
establishment of an international monetary organization, they insist, should not
measures
and
greafter ^1°Jieth^
vague a formula tnan
experienced
have
%ve
Have
war.
Maynard
Keynes,
Economist, Director
England, Ad¬
of the Bank of
viser to
,
money
irtent."
have
.
,
Author not revealed. Pre¬
portant
The
What does
he mean by the
because of the
free-spending
phi¬ "subordination of the interna^ to
losophy has been- given in Wash¬ the external currency"? Nothing Objectives
more than what the "Economist
ington under, the New Deal.
Mr. Drucker takes in a wide complains of, that when prices in
territory in his article. He speaks any country are too high and it,
of the increasing spread of in¬ cannot sell its goods abroad and is
dustrialization, in Russia, m Tur¬ faced with the choice of defla¬
at
home or
depreciation
key, in India, in Japan, in South tion
America, in South Africa and so abroad, the gold standard forces Initial Value
cn
Quite a problem, no doubt, deflation- because gold must be Of Currencies
and one for us to think about, al¬ shipped (in place of goods) in
external
though not strictly concerned with ; order to maintain the
value of the currency, and the loss
money; He speaks of the necessity
of gold forces up interest-rates Field of
of making' it possible- for" coun¬
and shrinks credit supplies and Activity'
tries of "very different structure
to collaborate peacefully.
If he causes unemployment. That was
means in trade, then, when each
why Keynes advocated leaving the
of two countries has
what the gold standard and depreciating
other wants, the fact that one money
as
a
politically easier
country, is democratic and the means of cheapening goods in Membership
more
other
monarchic, or one com¬ world markets than the
munistic and the other capitalistic, honest method of wage and price Withdrawal
would seem, to have little bear¬ deflation.
Suspension
ing on the trade. If, on the other
His solution may very well ease
hand, the two are trade-rivals
matters for weak post-war gov¬
then the fact that the "structuies
ernments.
Furthermore, if any
are the same would seem no cer¬
currency is stabilized under? the
tain guarantee of "peaceful col¬
plans at too high a rate this would
laboration." :
provide a most useful escape. But
!He raises an important point in the long run we cannot expect
where he mentions "the dilemma to achieve our economic adjust¬
between the political need for full ments by changing the value of Proposed
employment and the economic money or by changing its supply. Mechanism
need for a stable international There is a balance in these mat¬
system." Mishandling by politics ters and no substitute has been Assets
can
destroy the greatest pros¬ developed as a means Of finding
perity, and control by adventurers, it by Lord Keynes or anyone else, Quotas
spoilsmen or ignorant men must for old-fashioned laws of supply
A
British
Canadian Plan
The
/
The Authors plainly state
Extent and
its
vogue
,
SIMILARITIES
and
magazines,
D.
genthau.
point that deflation in any
country is so great a danger to
the entire world that the stability
of currencies should be entiiely
subordinated to avoiding it.
space ac¬
The British Plan
John
Treasury
the
thought, a
of
■.
The American Plan
the only way
American-Keynes
school im¬
portant because of its wide fol¬
lowing in academic circles, be¬
called
be
school
handy reference when studying the
Compromise Plan, which we are told
serve as a
published.
Henry
British and
herewith a
This comparative
coming Joint
will soon be
of the three proposals by Dr. A. Perren.
may
British'American
that it
political onus of repeated
and thus most unfor¬
tunately brought the gold standard
heavy
deflations
readers who have
peruse
Post
summary
chart
our
the lengthy texts of the American,
War Currency Plans, we are publishing
had time to
Canadian
Ihf
the
provides for equili¬
relationship between the internal
brating between tank and tank,
it provides no satisfactory formula currency' and the 'external cur¬
rency' ".
"The monetary history
for fixing the general level.*
That
is one serious theoret¬ of the past twenty:five years is
one of rebellion against this auto¬
ical
weakness in Keynes'
gos¬
pel which has, however
been matic subordination of the domes¬
lost sight of in a practical suc¬ tic credit and price structure to
the nation's external economic re¬
cess in which "untied" currencies
lations." "The first objection was
actually relieved Europe of the :
Keynes plan
of
Editor'8 Note:—For the benefit of those
not
policy
Pas^
tWu
years," he insists, "has been
the
during
Plans
American, British and Canadian Currency
There is a
the politi¬
system
cal-economic
Thursday, August 19, 1943
CHRONICLE
member
accepted as the
of Gold and
equivalent
merhbers
Union
in
of
of
the
fine
value as the Unitas.
like in the British Plan,
rency
ternational balances.
Except
permissible 5% (maybe"
10%)
depreciation margin, i
Clearing
settlement of in¬
of",
same,
for a
value
by
about the
Gold,
all
Gold
holdings.
The "Unit'— 137 1/7 gr.
of
a
member's
the.
cur¬
could not be changed
without the Fund's consents
Unit
deposits
made
in;
The Bancor would be in¬ Gold would be redeemable
with
in Gold and a 100% reserve
the - approval of 4/5 of the convertible and the Bancor
balances
would
have
no in Gold would be maintained
members.
■
at all times by the Fund.
The
Unitas, covered by statutory security.
could
only be altered
Gold, would be freely con¬
vertible into Dollars. -'
;
,
Volume
158
Number 4204
Role of Gold
THE COMMERCIAL & FINANCIAL CHRONICLE
The AmericanyPlan "
Gold would
*
the foundation of the Unitas
and the basis
cies
of
of all
Member
The
/"
definitively be
curren¬
Nations.
British
Plan
The
Although recognizing the
unrivaled value of Gold
measuring
vested
rod
and
interests
States
and
as
the
a
Canadian
Same
Who Will Be Blamed For Serious
Plan
important
role
as
the
Let me tell you just one reason
why nothing but an over-all
price raise for crude oil will increase production and reserves ma¬
terially. Take my case as an example:—I am one of the
18,000 smaller
Britain
have in
Gold, the stated pur¬
is to supplant Gold as
pose
fellows in the crude oil business.
of my investments must
governing factor, without,
however, dispensing with it.
The
trol
apportionment of Con¬
be
based
on
would
be on the basis war trade
volume, estimated
participation. Due at $25 billion. Due to its
proposed share of $2 large pre-war trade (about
billion, the United States $4,500 million), Great Britain
its
would have
veto power, a
a
four-fifths
vote
being
re¬
would
I
play
preponderant
a
Based
pre¬
role.
quired in major decisions.
capital
on
pation.
partici¬
No veto power, but
since
a
could
withdraw
creditor
country
from
the
Fund by
giving only 30 days'
notice, the indirect control¬
ling power of a large cred¬
itor
nation
would
be
con¬
siderable.
received
Each member would have
100
votes
plus
vote for
one
each
100,000 Unitas held, but
country would be able to
no
cast
than one-fourth of
more
the total votes.
In
ordinary
cases, the decision would be
taken by majority vote, but
in certain
important
four-fifths
vote
required.
cases
would
a
be
'
,
Each
member
Governing
low)
Board
would
proportion
his
limit
State
of
the
(see
be¬
Number
of
case
votes
American
votes
in
in
the
quota
of
from
enable
(and
me
sands of
bonus
fbr
production
similar
Plan.
Except
change in the
value of
of
a
Gold, when a fourvote is required,
all
or
wild-cats
near
holes.
from
and
present
followed.
In
of
vote to increase quota
a
member,
the
other
members would acquire one
a
additional vote for each 100,000 Units of their total aver¬
at
crude
(58% of parity)
prudent to drill
on
As
further
interest
an
net
in
186
of
sources
preceding
these wells
Each country would have
representative
Board of
Directors, which in
turn would
ing
select
Director
The
the
on
Manag¬
a
the
of
Fund.
Board,
which would
annually, would ap¬
meet
point
a permanent Executive
Committee of 11 or more
members.
A
Governing Board of 12
Large States
to 15 members.
would
have
individual rep¬
resentatives,
smaller
States
would be grouped and
resented
collectively.
rep¬
But
each
member /State
could
appoint a permanent dele¬
gate to the Union.
posed of
and
wet,
so
the
be done until such time
Rowers
com¬
representative
member country.
would elect one
and Assistants.
each
The Board
utive Committee
in Amer¬
as
issuance and sale of its
own
to
members;
loans
to members;
foreign
exchange operations in all
currencies of members; any
other
exchange - discoun t and-loan
operations,
with
nonmember
the Bancor in terms of Gold.
Supervision
the value of individual
when
tral
tions of
Government
member
same
powers
under
as
the
American Plan.
The Fund would be auth¬
orized to
rencies
buy and sell
cur¬
of non-member
countries, but could not nor¬
mally hold these currencies
beyond 60 days after pur¬
and
and
currencies
the rate of these
and
currencies
credit
I
advised
was
that
in
and
the
recommenda¬
other
mem¬
;
reporting
this, Associated
Press Washington
accounts
also
said:
As
member of the Senate Fi¬
a
Committee, Byrd previously
has proposed a retail sales
tax, a
nance
that
move
the
has
been
Treasury.
believes
He
such
opposed
said
"If
sales
a
ought to be
tax
on
a
as
great
he
sources
on
an
is adopted, it
two-year basis,;
and when the need
not
by
today
revenue
ought to be tapped at least
experimental basis.
of revenue is
it is now, it could
as
non-essential
effort
where
all his
available
of
one
funds
consecu¬
them
pro¬
expenditures
could
look first into personnel problems
in the Federal Government in an
Wichita, Kansas, has just finished
ducers!
A
duction
would
subsidy for
a
helped
some
him
producing
my
method.
way
surplus
a
from
properties,
Cost
up,
such
to
cite
specific
reduction
a
instances
be made in
can
the number of employes.
"We have already recommended
300,000 cut in personnel, but we
want
to
develop specific cases
look
can
added
be
that
reduction
made," he
if
an
an¬
of
105,000 in
the number of War Department
employes is carried out "it will be
very
encouraging."
Beyond that, however, he said'
has
the
committee
labor
and
full
explanation by the War and:
one
get
can
1926,
it.
over
up
price
average.)
I
nounced
is
as
He
leases
normal
As
said.;
of
gone
since
his
where this cut
besides
desires
at
the/situation—
mean
to
have
of
funds
they have obligated by
contract from
total of
a
but unspent on
was
$203,000,-
appropriated
last July 1.
"The time has
come
when there
"Submerging the Line" by grossly
ought to be
deflated crude oil
Collection of all
necessary
statistical information.
departments," the Virginian said.
price, and that
more
"There
line
past
for
were
building
of vital
oil
the
years.—B.
Calif.
of
T.
for the past
Cole,
Los
two
Angeles,
should
•
was
be
efficiency in the
sorhe
confusion
so
excuse
in
because
the
they
rapidly, but they
better organized now."
their international balances.
*»»»»>»»»»»»»»»»»*«<««««««««««««««*
v
Creditor
Debit Balances
be
countries
would
obliged to buy from the
Fund the currencies
member,
of
<
•'?
,
1
;
*
of
particularly
countries
any
those
against which
credit balance.
they have a
However, preestablished lim¬
its in the size of Holdings
by the Fund of any cur¬
could
rency
only
if
agrees
be
the
debtor
to
adopt
out
measures
by
the
chronic
exceeded
country
and
carry
recommended
Fund
to
correct
disequilibrium
and
subsequent transfer to
the credit of the account of
the surplus country.
Should, however,
ber's
debit
nal
appropriate
Interest would be
on
debit balances.
.
•
charged
rec¬
inter¬
affecting the
country's domestic economy.
It
could,
for
instance,
render
The
'A"
private
well
as
holdings,
v
in Moderation
official
as
exceed
its
initial
V
quota.
Net
sales
of
Foreign Ex¬
the; member's
cur->
the control of Capi¬
of
Gold
'
Board
and
sur¬
other
v
S
3
would
during
a
first
member
year,
cumulative
net
not
100%,
exceed
200%
could
and
sales
the
S
could
150%
make
use
its
Interest would be charged
on debit balances.
the quota during
two, three and four
Any purchase in ex¬
years.
cess
of these limits would be
the
a
Board
special vote and
SCHENLEY
a
a
a
a
A
a
*
a
a
require
a
corrective
a
a
measures,
as
under
the
American and British Plans.
Interest would be
a
a
similar
would
internal
charged
698) •'
a
ROYAL RESERVE
a
or
of
subject to
on
page
*
the first
...
v
| SHll Enough to Go 'Round Aliccly... |
balances, and not so long as
its independent holdings of
Foreign Exchange,
change to
influence to correct the sit¬
uation.
on
■
not exceed 50% of his
quota
recommendations and
(Continued
v
Gold and
re¬
tal exports or even the
reserves.
special permis¬
sion, no country could be a
net purchaser
(above sub¬
scribed quota) of foreign ex¬
change from the Fund ex¬
cept
for
meeting
adverse
the
reduction
rency or
Without
in
a
four-fifths vote,
of its
more
measures
of
a
or
mem¬
become
quota, the Board would
ommend
value
proval, by
a
balance
equal to half
quest
of all members.
balances
by drawing
the total Bancor Assets
upon
in
conditions and with the ap¬
trade
would be settled
the balance of payments.
In .short, the Fund could
temporarily "carry along" a
country having an unfavor¬
able balance, under certain
/v.;
Adverse
a
Navy Departments of the amount
000,000 he said
"Holding the Line" does not
balances.
more
price for crude oil that would
leave
tending to
pro¬
thing that might
tempt him to gamble
is
new
have
not
him and the only
year
curren¬
settlement
and
In
is what has been going on in the
nations
stabilization of their
cies
only last month
former associate of mine in
a
170.4%
Advice, Counsel and Aid
member
he
interested in both cutting
expenses
and raising additional
be repealed," he said.
He added
funds for the venture.
that a trial might convince even
subsidy would not supply funds
Treasury officials.
to a prudent operator who knows
Mr. Byrd said the committee on
his business.
(Wages alone have
in terms of Gold.
to
that
are
A
material—when
Counsel,, to
measures
income
produc¬
gamble and
the
warrants
gone
chase.
correct continuous debit and
Fixation of relative value
of
cur¬
banking
clearing operations and
and
same
nece'ssary.
members
or
in
the
Proportionate reduction of
tions, but only through Cen¬
Banks
as
bers
be
not
Non-Essential
a
About
quotas of all members if and
Advice
representatives.
changes
rencies in terms of Bancor.
na¬
or
of
of
would
begin hear¬
ings about Sept. 1 on Army and
Navy outlays, Mr. Byrd told re¬
spending
ican Plan.
Would include:
member
would
drilling will
by drilling 15 dry holes
Purchase,
Exclusively clearing oper¬
sale and holding
of Gold, ations in settlement of inter¬
currencies, bills of exchange national balances, leaving all
and Government
securities banking operations to existof member States; clearing ting
international banking
operations; acceptance of de¬ organizations.
/
Fixation of the value of
posits; earmarking of Gold,
Reduction
Expenditures
supplies
.Governor
Same Exec¬
„
obligations
no assurance
drilled
further
tively—not
Operations
there is
holes
of
from my present over-all
Board
one
acres
end
one
re¬
alternate from
an
at
the
year.
Governing
are
new
tion
a
Rice
there
producing
(200 bbls. daily potential).
the 186
in
in
small
that
Fund
have
which
vote for
of
the
rather
I
acres
on
of their
one
utilization
As
prices
illustration:
wells
two
oil
wells, even
that is partly proven.
acreage
which has been utilized, net,
100,000 Units
is
it would not be
in the
each
dry
more
County, Kansas,
tries would lose
all
present production,
are
preceding year; on the
other hand, member coun¬
Announcing that the Committee
on
taxes.
derived
a mem¬
me
porters
decisions would be made by
change in
on
sales tax.
a
there
to
continue
speculation?
I.E., only a percentage of my net
profit from oil income which is
majority vote.
ber's quota; in this case a
special procedure would be
posed
new
Then what inducement
resents, except when
vote
and
For Sales Tax
By^d (Dem., Va.) pro¬
Aug. 11 a two-year trial
or
I might drill 10 or 15 wild-cats
fifths
a
from
—-——
Senator
of
subsidy
a
—:
Byrd Urges Trial
thou¬
are
others) to increase specu¬
age contribution to the Fund
Management
there
lative development.
I
am
sure
that
the aggregate
quotas of the States he rep¬
concerns a
of net profit
devolpment would not interest
to
cast
to
or
invest-^—
new
50%
caring to go broke, this part
I do not intend to lose money
equities in other lines of business.
or
producing proper¬
ties. An over-all crude price on a
par with other commodities would
as
Vote
therefore
funds
on
inents in oil to
Would
of Capital
to
in oil and draw
Not
itself.
carry
a
Control
Shortage s
Of Crude Oil?
under American Plan.
United
Great
697
debit balances.
£
a
a
BLENDED WHISKEY
86
proof. 60% grain neutral spirits,
Schenley Distillers Corp., N. Y. C.
a
a
#»>»»>»»»»»»»»»>»»*«««««««««««««<««*
>
Thursday, August 19, 1943
698
June 30, 1943,
Non-Essential
A Moratorium For
years
The
value
boom
posed on these electric systems by
having more than 2V2% of their
Activities In Wartime
These
reached
"integrated"
the
public
utility system;
holding
the
company
in the present emergency
is
another
-
.
the
1o
elimination
,
and
company
ing
-
operating
an
of
than
more
million
a
people.
It will be apparent that a sus¬
August 7, 1943, reveals that close
pension, for the duration, of these to
5,000 employees of privately
activities, which require violent owned electric utilities have spent
changes in system holdings, the an estimated
9,725,000 man-hours,
disposal of properties and inter¬ at the minimum, in preparing data
ests, and the readjustment of the and furnishing answers for in¬
rights of security holders, will in
tegration
proceedings,
original
no way interfere with the effec¬
cost studies, and similar inquiries
tive regulation of utility holding
initiated by these two
Federal
companies. Yet, these are things bureaus. In passing, it might be
which cannot be done under ex¬
noted that it takes only
13,000
isting conditions without loss to man-hours to build a Liberator
investors, confusion and waste of B-24 bomber.
time to utilities, and hampering
Integration
procedings
and
cf the war effort. They definitely
need not be done now, in the preparation for them, instituted
by the SEC under Section 11 of
midst of a national crisis.
the Act, have consumed an esti¬
Furthermore, the SEC already
mated 1,725,400 man-hours, or at
has issued many far-reaching or¬
the rate of more than 86,000 a
ders, which so far have not been
month.
Original cost studies ini¬
complied with through lack of
tiated by the FPC have required
time, and many important pro¬
ceedings
have been instituted, 7,058,800 man-hours of work, or an
which are now pending, all un- average of nearly 353,000 a month.
And other actions instituted by
der the four sub-sections of Secone or
the other of these Com¬
lion 11 in question. Although pro¬
missions have necessitated 941,-
.
additional year,
SEC finds it necessary or
if the
of
an
appropriate in the public interest,
or for the protection of investors
1
100 man-hours of work, or
rate of more than
as
desirable, it would be equally
desirable to have it cover ex¬
isting orders which have not been
carried
out,
which
far have not resulted in
the
so
and
of
issuance
sion
formal
Commis¬
orders.
addition
In
Federal
the
proceedings
SEC
to
Power
activities,
Commission,
acting under the authority granted
change
power
of all public utili¬
der
its
this
effect,
•
jurisdiction.
System
requires
In
af
Crowley,
the
reclassify
1. To
their
electric
acounts as they stood on
January 1, 1937, so as to reflect
the original cost of the utilities'
plant
properties; and
2.
current transac
account
To
lion arising after
as
January 1, 1937,
required by the Uniform Sys
tern.
The
requirement
accounts
shall
be
cordance
with
the
that
current
kept
ac¬
in
FPC's
pre¬
scribed system generally
*
;
has been
.regarded as regulatory in character,
but
reclassification
of
property accounts to reflect orig¬
inal
cost
than
of
savors
more
regulation.
of reform
Compliance
not
operating
head
the
of
Balances
Should
ings
is
i!
\
:
they
The
of any currency drop
of that country's
recommendations
by its nationals, etc.).
Should the drain of a cur¬
persist and the Fund's
rency
holdings be threatened with
exhaustion, the Fund would
apportion its remaining sup¬
plies among members by
some
equitable method of
would be
interest
No
distribution.
charged on credit
less
than in the June,
1939, year. And
job all the harder,
these electric systems had 42,760
or
17.8%
fewer
employees
on
to
make
the
from
preserving
providing
British
forced
~
liquidation,
market
values
and
opportunity for the
an
either
behind
sets
reclaim
to
the
loans
the
as¬
after
the
market them at what Jesse
Jones, Federal Loan Administra¬
tor, has termed 'fair value' prices."
A
moratorium
sentence"
would
lem
of
for
SEC
activities,
solve
not
forced
"death
obviously,
only this prob¬
sale
of
operating
utility-stocks at below their "fair
The Canadian Plan
British Plan
bal¬
member's
a
one
over
,
•
year,
Measures
sion
quota,
for
the
expan¬
and
request,
have
would
member
a
to
sell
the
to
operations result in
net sales of a particular cur¬
rency,
up to
75% of the
quota, a program of capital
investment
in
cooperation
rates or
money
earnings; reduction of tariffs
and
suppression of export
premiums; international de¬
velopment loans.
A
member
obtain
in
other
ances
held
tries,
provided
the seller
to purchase 40% of
agrees
coun¬
these balances at the rate of
2%
per
within
year,
23
years.
The country in
abnormal
Union,
cannot demand
but
from
is
the
Union.
The
empowered,
would agree
are
and
to
such
international
in¬
the
supply of that
Should the level
currency.
reach 85%, a report similar
to the one foreseen in the
American
plan
rendered'
and
would
the
be
Fund
would
proceed to ration the
scarce
currency
sider
the
No
it
increase
of
balance
in
excess
countries
would
definite proposal, but
is
suggested that some
provision will have to be
made
during a certain tran¬
period for convert¬
sitional
ing 'V blocked
war
balances
into
Bancor, without undue
hardship to the debtor coun¬
try.
and
recon¬
exchange
rate
structure.
No
interest
charged
on
.would
be
credit balances.
During first two years of
operation, the Fund would
right to buy (up to
have the
a
limit of 5%
of
all
war
of the quotas
member
countries)
balances held by mem¬
bers in other member
coun¬
tries, for the national cur¬
rency of the selling country
or
held
for
needed
foreign
to meet
exchange
current
count deficits in such
to transfer them
Fund
with
specified proportion of its
which the
balances
the
ist would be worked out to
have
countries abnormal war bal¬
Should
credit balance by depositing
with
the
Clearing
Gold
Creditor
would
submitted.
vestment agency as may ex¬
have to pay interest on their
Bancor balances.
^
Fund
be
a
can
.
to buy from member
Pe¬
alternatively, an Fund's
quota.
The
held
amount
Bancor or,
increase in
credit
power
the
joining the Fund.
riodic reports would have to
a
Blocked
of
excess
when
demand; appreciation of its
local currency in terms of
how¬
ever, to distribute Gold to
a
member
possessing
a
War Balances
Upon
the
of domestic credit
Board
propor¬
generating
Corporation would
ings, thereby keeping such invest¬
condi¬
exceed half its
ance
Gold
balances.
the. world.
produced this
with
progress,
Board Fund against its local cur¬
quota, a report will be es¬ would suggest one or all of rency or for foreign ex¬
following
corrective change all free Gold or For¬
tablished, showing the causes the
of the depletion and making measures:
eign Exchange it acquired in
ances
47,000 a month.
current
in
are
recent
pool of capital to
against British hold¬
loans
the diversion
by
July 14.
huge
a
make
by
Should
hold¬
the Fund's
(sale to the Fund of excess
foreign exchange and gold,
reduction
of foreign
bal¬
equip¬
ment, since the installed generat¬
ing capacity of these systems was
only 21.2% greater at the end
of June, 1943, than it was four
years earlier.
Then, too, the de¬
mands made upon these electric Exchange
systems in the June, 1943, year Restrictions
industrial consumers,
by large
mostly engaged in essential war Capital
production, were 105%
greater Movements
tionately
create
declining
selling prices, rising costs, and
high war taxes.
Certainly the
harm to the owners of utility se¬
utility
to
Finance
tion
being enforced by the SEC at a
utility earnings are
depressed
to
in
Washington
reports, whereby the Reconstruc¬
The 'death sentence' clause
being
man¬
suitable
throughout
of
according
Economic
of
abnormal
extremely
below 15%
produced 200,858,051,000 kwelectricity, or 63.8% more
was
generated in the 12
months ended with June, 1939,
volume
Office
The American Plan
Credit
than
peace
"Negotiations
&
made
recently
and
solution
described
1941:
Company,
but
Alien
Property Custodian, Chairman of
the
Federal
Deposit
Insurance
Corporation,
The
was
(Continued from page 697)
for distribution to consum¬
Moreover,
Gas
problem
the "New York Times" of
Electric
ers
of
this
Leo
Standard
funds.
substantial loss.
T.
Chairman of
only
of
Board
of
Summary of the American, British and Canadian Currency Plans
practically the last full 12 months
fected utilities:
conditions,
present
securities
ever,
high price reached in 1932. ■:<
Commenting on the injury that
would be inflicted upon investors
by the forced sale of portfolio se¬
curities by holding companies un¬
According to Standard & Poor's
published data,
proposed
was
Market values, how¬
had been depressed by the
war and any forced sale of these
holdings offered the prospect of
aver¬
age
date of government to buy.
hrs of
use
under
ties
but 50% of the
was
sary
lime when the
at the
elec¬
of
this huge total of man-hours to
non-productive work will be ap¬
parent when the demands being
made upon them are considered.
During the 12 months ended June
30, 1943, all electric systems con¬
tributing to the public supply of
stocks
common
sion, while security underwriters
no
it
this country to provide the neces¬
the New York Stock Ex¬
/;
utilities
by Title II of the Act, has pre¬
scribed a Uniform System of Ac¬
counts for
utility
on
tions.
under
before passage of the
act,
American corporations be sold in
der
are
confronted with
that ' British-held
1932, while the aver¬
high price in 1942 of all op¬
The hardships inflicted on
tric
this country
lend-lease
be¬
value, but be¬
holding companies
must
sell under governmental compul¬
and investors
when the British
was
of paying for war
materials and supplies bought in
cause
figures, moreover, repre¬
sent only the actual time of em¬
'J
60%
was
faced
conditions.
problem
the basis of actual
These
tivities.
which
low
willingness to
investors,
ago,
years
war or
consumers,
11 is
the
a
market
similar
Two
al¬
Government
protectv foreign
ments
ployees engaged in carrying out
the Act's primary
the studies, digging out the statis¬
requirement is that any order is¬
sued by the Commission in con¬ tics, and compiling and preparing
data for presentation.
They re¬
nection with integration activi¬
flect little, if any, time devoted
ties "shall be complied with with¬
to this work by executives and
in one year from the date of such
supervising officials, nor do they
order."
Obviously, then, if sus¬
include the time of commission
pension of activities under the
first four sub-sections of Section personnel consumed by these ac¬
or
Federal
Warfare, said in early May, 1942:
"Certainly it is not in the in¬
terest of any security holders to
dispose of assets of the company
at sacrificial prices prevailing un¬
vision is made in the Act for an
extension
The
reached at
listed
war
Applying this experience of 12%
months to the 20 months ended
the level
-
the
deferring
ready has shown
in
erating
and
in the holding company
company
to
age
of
system.
82
of
due
neath that of
diction of the SEC and FPC, have but during a period when earn¬
all but
devoted, between Pearl Harbor ings are threatened by vastly in¬
three tiers of corporations where
The prices
and the close of 1942, all the time creased Federal taxes.
more than one intermediate com¬
and energy of enough employees realized for these equities, more¬
pany exists between the top hold¬ to render electric service to a city over, will not be determined on
7. The
low
index
offsets
'death sentence' clause."
car¬
stocks, however,
same
an
above
1942
a
In fact,
holding company system;
had
stocks
prices to fantastic lev¬
Fur¬
thermore, the Dow-Jones index
for utility common stocks showed
should
effort.
grant ' privately
owned
the amount of time and electric and gas utilities the re¬
5. The redistribution of voting
effort required of public utilities in lief a moratorium on these phases
power
among - security
holders complying with SEC and FPC or¬ of commission activity would pro¬
where the voting power is found
ders and directives is staggering. vide. "Rapid compliance" with the
to be unfairly or inequitably dis¬
Based on the experience of rep¬ "death sentence" of the Holding
tributed;
resentative companies, developed Company Act, for which the SEC
6. The termination of the ex¬
in a study made for Edison Elec¬ now is pressing, will force the sale
istence
of
companies in cases tric
Institute, it is estimated that by holding companies of operat¬
where their continued existence
the electric power and light utili¬ ing subsidiary equities not only
complicates the structure of the
ties, alone, subject to the juris¬ in a disturbed security market,
system;
interest
Government
why Congress
reason
in
overwhelmingly
possible harm to the public
any
ilie bottom of the depression.
the expenditure
lected
the
in
with
of enormous sums nearly approach normal.
In addition to the drain on warin money, and the waste of time
the and effort that might better be di- depleted utility manpower, there
subsidi¬
of
structures
of
aries
of
simplification
The
4.
corporate
curities
index
an
120
8.3%
when that information in no way
the disposal with this requirement, moreover,
the
investigation, furthered the war efort, should be
utility companies in necessitates
study and review of all books, apparent. If for no other reason
holding company systems;
vouchers and records of existing than conservation of manpower,
3. The disposal of other busi¬
immediately
should
companies and their predecessors Congress
ness interests which are found by
jn title, going back to the earliest adopt legislation to suspend the
the SEC not to be reasonably in¬
non-essential activities of the SEC
days when individual units of
cidental, or economically neces¬
property were constructed. These and the FPC for the duration, or
sary or appropriate, to the opera¬
studies and investigations require until such time as conditions more
of
of
1932, while their index value on
July 28, 1943, was 88.8, or only
of subsidiary
tions
market
their
els.
In certain cases,
2.
point
period, well before the
ried
employees forced to devote their
full time to digging up data for
Federal
agencies,
particularly
(Continued from first page)
high
1925-1926
im¬
burden
tremendous
stocks reached
common
than they had four
earlier.
ac¬
coun¬
repur¬
try's balance of international
chase from the Fund 40% of
payments. After two years
the Governing Board would
the
to
them
year,
Fund
at
the
ter
of
2%
a
submit
within 23 years.
The
could dispose of part
all such
or
rate
the
sooner,
tions.
war
further
Restrictions
on
would
capital
be
re¬
tained, but restrictions on
foreign exchange dealings
concerning current trade re¬
quirements would be prog¬
ressively removed.
gradual
of war
balances and other financial
balances af¬
indebtedness of similar char¬
23-year period, or
under certain condi¬
movements
plan for
liquidation
a
acter.
Maintenance, or removal
restrictions are
optional.
of exchange
The maintenance of
ited
control
movements
is
over
a
lim¬
capital
suggested.
Members
with
net
balances up to 25 %
debi
of thei
quota would be required t
exert
control
over
outwar
capital movements. Removs
of exchange restriction
urged, whenever condition
permit.
Volume 158
Number 4204
THE COMMERCIAL & FINANCIAL
CHRONICLE
value"
prices, but, in addition,
partially would cure the evil of
wasted
utility
Still
of
the
why Con¬
reason
sentence"
Not much going on these days.
the
for
which is
duration is that the.,high Federal
taxes imposed on privately owned
to
utilities, but from which publicly
are exempted, are
forcing electric utilities into the
until
.
.
the
.
A dull, uninteresting market
or some other major news
.
Reaction is just about
over, temporarily,
Important rally hasn't gotten under way and may not
financing is completed and we have denial or con¬
.
.
.
.
next
disturbing
commercial
banks
rumors about
possible slow selling.
The
the sidelines.
Insurance
.
.
.
generally are on
companies have just about finished their liquidation of
tax-exempts
and between now and September
9, the rest of their selling should
be tied up in a bundle and put
away on the shelf.
Which will
.
privately owned electric utilities,
alone, in 1942 were equivalent to
24% of their operating revenues,
with Federal taxes accounting for
in the
64%
the
governmental
out of its rut.
move
firmation of
ownership of their served muni¬
cipalities.
Total taxes paid by
to
exac¬
welcome relief to all who
a
jump aboard to all who
future and
prime
own
exempts and
waiting to buy
are
.
.
.
be
.
.
last warning signal
a
more.
.
.
.
But that's
.;
.
.
Municipally owned electric suit." "...
utlities, however, paid no Federal
Incidentally, it is a fact that the big insurance companies have
taxes, few if any State taxes and
been selling exempts and thus have contributed to the
sloppy
Morgenthau has now announced that holders of the
3V4s
1945/43, called for redemption October 15, are to be given an ex¬
change offer.
Confirming the market's hint during recent weeks
...
but token
local
One instance will
the
advantage
owned
from
market in the favored long-term
is a few large companies were
to show
municipally
arising
emption. Dur¬
.
just
simply wouldn't have justified a premium of 100.19-100.21
directly
before a redemption.
Also Morgenthau has disclosed the bonds
will remain
outstanding until next month, for they're to be exchanged
shortly after the close of the third war loan drive.
A good
Federal
to 112..
taxes
...
result,
available
for
ferred
and
dividends
on
pre¬
stocks,
common
,
It's
year.
In comparison, the operat¬
of Seattle's munici¬
revenues
pally
owned
electric
in
system
v.
for offering in
And
that
September.
will
mean
.
.
be
off
exempt market—particularly off the last four issues—for good.
exempts.
the
.
.
World conditions already have af¬
fected the financial markets and
price
levels; the
and
war
continuation
preparedness
June
7,
"*
1943,
of
*
*
the
Pennsylvania
privately
of
the
Federal
factors entering into
rate-money by order is highly un¬
upon
In" early
January
1942,
the
Massachusetts
Public
Utilities
by
certain."
communities
and
districts'
now
constitute
practically
the
only
buyers for electric utilities forced
the market by the "death sen¬
tence."
And for this reason, en¬
on
forcement of the "death sentence"
the
present emergency is, in
driving privately owned
utilities into public ownership.
Certainly, precedents are not
lacking for congressional relief of
segments of the population threat¬
ened with loss during an emer¬
gency.
During early depression
years, many of our farmers, who
had mortgaged their lands, were
.effect,
faced
with
loss
wholesale
foreclosure
their properties,
"fair
value"
prices
cause
of
longer existed.
be¬
no
So, through adop¬
tion of the Farm Moratorium Act
1935, Congress
In
rescue.
to their
came
similar
a
manner,
v
■L
of
many
our
state pub¬
"In
nation's
our
One of them
regulatory activities.
has asked the Federal Power
Commission to discontinue
proceedings
of the
addition,
until
war
one
after
emergency.
of
the
In
present crisis,
ihe
capacity in
a
endeavor.
common
*
*
*
It
would not be in the public inter¬
est to intervene at this time."
report by the American Bar
a
Association's
Special
Committee
the Effect of National Defense
on
Laws
and
Regulations
on
Public
Utilities, which was signed by
Clyde B. Aitchison of the Inter¬
state
Commerce
others, and
among
was
presented
to the Annual Convention in
ust,
1942,
"It
is
Aug¬
the following:
appears
axiomatic
of
that
regulation
been
primarily
conceived
ply under conditions of normal
competition between carriers and
between
shippers.
Many features
regulation which
in
times
obstructive
tional
of
to
efforts
defense
entirely
are
become
peace
if
to
the
for
the
duration.
too
rigidly in times of war. * * *
Regulatory machinery, in time of
war,
has to be geared to the
tempo of the war effort."
v.
A
news
in
report
the
York
Times"
of
1942,
credits
"New
"which
the
logical order.
"In
13,
General
saying that the
no
will
impede
effort."
war
order
carriers,
obstruct
or
like
And
he
and
reasonableness
charged
Power
by
&
"The
the
Light
Board
of rates
Jersey Central
Company:
has
taken
the
in¬
dicated course,
because it is ap¬
parent
that
any
conclusion
reached now by the Board as to
value of property, operating ex¬
penses
no
and
rate
assured
reasonable
of
return
can
stability for any
the future.
period in
to
dispel
whatever
state
the
existing normal and estab¬
lished activities of carrier rate
bureaus
and
conferences
is
...
end
ance
cerns.
.
.
of the business and
$34,000,000 to fire and other
con¬
.
$179,000,000 of the issue is in the Federal Reserve System's
/
investment portfolio.
..
.
$466,000,000 is in the portfolios of "all others."
.
.
.
To put it briefly,
then, at least $1,000,000,000 of the 3y4s may be
traced to the portfolios of those investors interested in
tax-exemp¬
tion—the $619,000,000 plus the $466,000,000 classifications.
...
And to go on from that
point, it is logical to expect that at least
20% of this money will find its way back to
tax-exempt bonds shortly
after the 3y4s are paid off.
Company.
the
time
would
activities
carriers
and
unduly
and
hence
energy
as
utility, would
tax-exempt issues will be selling above today's levels by the
year-end.
...
.
TIIE
mission, said in
letter
a
to
the
.
.
.
.
SEPTEMBER DEAL
Said
James W. Wolfe of the State Com¬
dealer:
one
"There'll
be plenty of 2%s and 2s around
You'll be able to pick up all you want."
loan.
FPC:
come
the third
war
Said another:
"We
can see no
tween
relationship be¬
proceedings and the
such
national
effort.
war
.
pulling and the Treasury's
Our
.
.
"While the $15,000,000,000 goal may be reached, it'll be hard
hard
this
on
opinion is that to carry this matter
its
ultimate conclusion
national
our
emergency
irretrievable
an
transportation
power,
Said
during
will be
the
lo
Shoals
lor
other
and
go
if
it
The
half
were
century,
a
and
licensed immedi¬
ately, without contest, we can see
no
change
in
conditions
that
would follow except
lars
license
fees
paid."
It
would
be
v-.-V.v.,:
is
and
the few dol¬
that
hoped that
our
Representatives
Senators
will
recog¬
have
may
have
to go out
been regretting his
few weeks ago that if the
a
well, there'd be
tip-off
on
Said
a
and
work
a
third
fourth loan in December.
decision
when
loan didn't
war
That, to me, was
fourth:
"He
a
Portman
has been operating
plant
almost
even
effort.
war
will
third:
a
he remarked
essentials that should be devoted
men
one."
"Morgenthau
man¬
of
waste
may
the Treasury's apprehensions."
get the cash he wants but I'll
it from the people he wants it from.
In short,
wager he doesn't get
I expect the insurance
companies, corporations, etc., again will have to step in and hold up
the subscription totals."
The quotations tell the story. .
There's a lot of talk around
the coming September financing and a considerable
portion
of it is discouraging. . . .
Not the goal but the
.
.
about
barrier
high goal plus the
against bank subscriptions may be blamed.
In
are bothered about the coincidence of the September
raised
.
.
.
addition, experts
15 income tax
filing date and payment with the drive.
Are dis¬
studies, investigations
and proceedings instituted by the turbed about the effect the opening of tax conversations in Congress
on September 8 will have on the success of the
Securities and Exchange Commis¬
campaign.
Are
sion and the Federal Power Com¬ looking forward with some fear to the possible let-down in en¬
nize
that
mission,
half
a
which
consume
month
by
the
.
tribution to the
war
until
business is settled.
thusiasm among individuals because of
will end soon."
effort, should
more
serious
As President
Roosevelt said in his radio address
the
,
.
Whatever the specific factor, the reports are about.
a
printed here.
will
be
.
.
and to win it."
while.
artificial
ments
on
thex views
subject
un¬
der discussion. Comments should
be
addressed
to
Editor,
mercial and Financial
25
doing anything until
on
.
some
or on any
Com¬
Chronicle,
Spruce Street, New York.
by
.
Then
.
new
As for
that's the
2s
or
these
on
a
you
21/£s.
the bank
one
can
you see
the price level for
/\';y.
Watch
'
to hold off
your
go¬
tax exempts
or
...
offering, to follow the public
...
war
loan drive,
Assuming the banks
are
1953-51, and assuming the public already has bought
large
scale, we may anticipate
shortly after the bank books close.
your
market trend
you
how the September deal is
step in and buy
to watch for quick profit.
offered 2s due
or so
other force—the
no
on
/'-'v
.
com¬
expressed
by Mr. Abrams,
if
pressure
To put it another way, it may be wise for
ing.
"The Chronicle" invites
This is
.
And while you may take for granted that the goal
.
achieved—by
"hard pull" is likely to have an adverse effect
a
.
.
war
confirmation of the first story on this development two weeks ago,
of
July 29, "The all-important
thing,
the
all-important thing
now, is to get on with the war—
psychology of "the
^
....
war-depleted
staffs of privately owned utilities
without
making any real con¬
related phases of the
adopted
nearly
million man-hours of work
of the
unnecessarily
emergency,
those of the
as
a
make it difficult to proceed with
the case at that
time, Chairman
above
Statement of Policy on its
attitude toward utility
earnings
the
term
purchase of these bonds is indicated. [
diffuse
a
during
Carolina
ing staff and other personnel,
I
at
burden them."
In
South
party to the proceeding, and not¬
ing that depletion of its engineer¬
con¬
templated by the department.
feel that any such program
this
the
be sidetracked
may exist, I should
simply that no in¬
vestigation into or disturbance of
to
that
con¬
misconception
sioners said, in part, in suspend¬
proceeding to determine the just¬
...
Maybe you'd better watch those 23/4s at their current price of
slightly above 112.
And while staying close to the sidelines
is the wisest policy at the
moment, there may be a day soon when
a
proceed¬
any
common
4,1940, the New Jersey
Board of Public Utility Commis¬
a
a
South
ment of the Duke Power
in¬
tinued:
On June
as
November
instituting
against
These will be discussed in chrono¬
ing final action and decision in
$1,401,000,000 3l4s outstanding.
are
...
Attorney
ings
"out"
na¬
enforced
tention of
is
for
normal times of peace and to ap¬
lation
car¬
sys¬
carriers which have been devised
rectly, have indicated that "regu¬
common
ago,
common
Francis Biddle
of
approximately
the
Carolina
Public Service Commission asked
to
the
of
Department of Justice has
usual"
finally,
month
Commission,
General of the United States, di¬
as
created
conditions."
war
well
In
member of the Inter¬
state Commerce Commission, by
implication, - and the
Attorney
a
situation
commission desired to be made
of
on
economic
capably serving in
sound
affecting rates and other
as
Stating
ly have instituted what, in effect,
moratoria for the duration
distribution of this bond among
on
$56,000,000 belongs to insurance companies in the life insur¬
producing increased
the result of an arti¬
the company is commendably and
lic service commissions voluntari¬
matters
with, here's the data
.
by Congress and the States have
<'-''.Vv
the long-term
on
.
the
Already
3y4s, which is
is, the effect this
Commission, in dismissing a pe¬ the Federal Power Commission to
for investigation of tele¬
discontinue, for the duration, a
And to finish the
argument, that means at least $260,000,000 may
phone rates charged by New Eng¬ proceeding instituted by it de¬
be seeking long-term tax-exempt bonds later this fall.
land
v.
Telephone
&
Telegraph signed to give the FPC jurisdiction
Just another point to bring out this writer's belief that
over the Portman Shoals
Company, said, in part:
the longdevelop¬
tems
of mortgaged homes.
through the Reconstruction
Finance Corporation Act of 1935,
business in general was given re-
the
tition
passage
of the Home
Owners Loan Corporation Act in
the same year, it afforded relief to
owners
to
And,
■
through
And,
.
$46,000,000 rests in the portfolios of savings banks.
the Commission deems it
earnings
amount
.
investors:
Public Utility Commission said:
ficial
"save" the
.
com¬
2^s—but they could
or
■•.banks....
effect
more
Holders other than
.
.
Of this total, $619,000,000 represents
holdings by commercial
pear
taxes,
was
.
popular tax-exempt issue will have
a
,
levels; the immediate future of its
it
com¬
...
There
.
.
.
.
To begin
weight " will
.
exchange the 3y4s into 2s
of these as they want anyway.
elimination of
ther affect such markets and price
income
of
those
because
Federal
be of more-than-ordinary value.
more
•
.
tremendous
one
port of the Federal Government,
have
.
.
,
interesting angle about the exchange offer is that
as many
.
ready
owned utilities contribute to sup¬
ness
.
But there's another angle to this
story about the
interest to more people. .
And that
of
higher than in 1941.
Be¬
municipally owned utilities
cause
riers
.
.
.
its
net
close
.
.
get
than
1942
167%
its
.
One
vestigations into the reasonable¬
ness of existing rates which ap¬
above
mainly
no
even
.
a
,
inadvisable to institute formal in¬
paid
are
.
mercial banks may
activities
but
lieL
.
basis, the par-for-par exchange
Government, if
past experience counts, will fur¬
18.4%
were
1941,
in
incidentally.
pity Morgethau waited until this last minute to exchange
these.
Actually, he missed his market.
The deal should have
been handled in July or
during the first week of August.
He's
making it unnecessarily difficult by delaying action.
may
below that of the preceding
and
few weeks,
a
was
6.2%
.
...
.
only 19.3%.
As
1942 net income,
its
in
coupon
...
for
.
tax-exempts recently.
Story
fairly actiye on the liquidation
reliable reports, it is definitely being finished.
.
Chances are
the insurance firms most involved in this
activity will complete
their operations by the time the new "basket" of issues is
increased
enues
,
.
mercial banks owning the 3y4s are to
get a par-for-par exchange into
new 2s of
1953/51, coming out in September.
If allotments of
these to banks are on a
percentage
But this type of selling has been going on for almost
It must be near its end by now and according to
.
.
two years,
paid
by The Montana Power Company
were
117.8% higher than those
paid in 1941, while operating rev¬
can
.
the
side throughout the decline in the long-term exempt issues and
especially, throughout the drop in the 2%s of 1965-60 from 112.30
utilities
Federal tax
the
taxes.
serve
to
electric
1942
1942
.
that these would get this
exchange privilege, for the bonds have been
way up in the last few months.
And regular cash payment
..
often
ing
.
of
,
a
,
,
deserves
a story
by itself.
As of this week,
is "market quiet, best policy for you is to follow
'/ ' ■_ /
■
'■
V-', '• •
'
news
tions.
ing
,
THE Z\is
waiting for the September deal
at least.
owned utilities
all
conclusion.
By S.F.PORTER
suspend enforcement
"death
of
You don't need
any elaborate explanations to come to the obvious
"Oui Reporter On Governments"
manpower.
another
gress should
699
on
.
.
2s of 1955-51, now selling
this pending issue.
.
.
.
a
premium of */4 point
.
at 100.15, for
a
clue to
THE
700
gold being pro¬
amount of yearly
Post-War Exchange S tabilization Reviewed
(Continued J
page
rom
696)
out, as we did in
rates and our "external" currency.
the 20's, foreign goods offered us
Thus whether
"internal" domi¬
for nothing, or, to be quite accu¬
nates "external," or vice versa, de¬
rate, offered us for dollar pay¬
pends upon the point of view, and
ments which the sellers were most
Mr. Drucker, in speaking from
an
essentially British point of eager to return at once as interest
upon their debts to us.
view, is likely to confuse Ameri¬
Have we learned our lesson as
can readers.
to tariffs?
If not, and there is
The situation, when carefully
no
convincing evidence that we
examined, is, in fact, not one of
have, the Dewey plan will be our
habitual "subordination" of one
best way out, giving limited help
side to the other at all but just
ately shutting
another
where
a
case
of economic balance
change on either side can
cause the other side
abroad
getting
while
tangible and
something
non-competitive for
portioned to maturity.
On a 15year bond the amortization fund
would apparently accumulate at
the rate of about 3% of the face
closely, to what we, and ,a few,
other countries with goods to sell,
cannot be "in excess of
20% of IRB's capital plus 'perma¬
nent deposits.'"
There appears
no
other restrictions on amounts
be lent.
.
thirds vote,
and
members
the borrower being ex¬
borrower
not re-lend at less than a 1%
advance in interest rate.
Short-
may
redis-
ourselves.
If
in
in either direc¬
and "subordination" can,
to tip
On the first
question, if we are
willing, as we seem to be, to go
into debt two or three or four
hundred billion dollars to win the
we
have learned
icy. That is an
liminary.
'
our
essential sane pre¬
;/;
.
Melchior Palyi
1%
the
The size of these gifts, un¬
war.
der
the
Keynes
plan,
could
be
punitive in amount, with no limit
except the combined extent of
other nations' quotas.
An intel¬
ligent
the
choice, therefore, between
first
four
plans,
on
the one
practice exchange manipula¬
tion, capital import and export
prohibition, etc., upon other mem¬
bers, may do so on outsiders.
In
event
of voluntary withdrawal,
members agree to forfeit deposits
and they also agree, except upon
a two-thirds vote, to maintain the
gold values of their own curren¬
hand, and that of Representative
Dewey on the other, logically in¬
volves a prior decision as to our cies.
attitude toward the admission of
The
IRB
may
borrow (scarce
although
IRB,"
of
unit
called
a
under
the
merce
gold
not
■
wholesale
possibilities and any attempt at
comprehensive
discussion leads
off into a maze of alternatives.
577,818, or
great creditor
nation deliber-
com¬
of
employment
24% of the total.
of
"Among the outstanding groups
those employed in the ap¬
and related manufacturing
314,594 employees, or
13% of the total; and full time and
parel
trades with
compulsory
on
member
countries, then the lending capac¬ limited function wholesalers, with
ity of the IRB is limited only by 126,373 workers."
requirement as to short
10%
the
and by the
requirement as to
term loans,
A revolving
medium-term loans, each
term
paper
fund
sinking Cotton
Report as of
longerA United States cotton
fund of
an
sinking fund on hand
that the ultimate lend¬
so
to somewhere
out
work
IRB would
the
capacity of
ing
between
its gold
It could be expected,
consequently, to become an infla¬
tionary force in world affairs to
the extent of only something like
holdings.
times its gold holdings.
seven
If
joined and made min¬
contributions in gold, then
40 nations
imum
the
holdings
gold
would be only
of the
Bank
$100,000,000 and the
only
credit it could issue would be
$700,000,000,
which
amount
an
inadequate to the purposes
which these plans direct them¬
seems
to
selves.
A. to contribute
S.
like 2 billions in
In
share.
erous
something
gold as its gen¬
that case the
lending power of the fund, on the
theories suggested, would be over
$14,000,000,000.
.that
we
That could mean
would sell goods to some¬
the thing like that amount on IRB
any
credit
the
and
effective means of
debtor
the
on
of that
weakness
provided by
is
nations,
such
as
existed for the last 25 years,
has
maintaining its value is
It is true that member
Mr.
Palyi's plan
and deflate
and debtors must tax
ship goods but nothing
done to force creditors to make
market for these goods.
is
a
for
500 .s
duction
would
be
less
than
the
1942 crop by
266,000 bales or 2.1%,,
but
84,000 bales above average
production
during
the 4 10-year >'
(1932-41) period.
•;
all-time
An
States
record
United
of
yield
279.4
indicated.
Such a
yield would be 7 pounds above the
previous record yield of 272.5
pounds produced in 1942, and
average
pounds is
now
compares
with
217.0
an average
yield of f
pounds.
In the southern
part of the Cot¬
ton
Belt,
estimated yields are
generally better than last year,
but in the
more
northern
areas
it
that the unusually high
yields of 1942 will not be reached. ;
appears
Palyi, however, expects the
Mr.
U.
of
Agriculture, based upon informa¬
tion as of August 1.
Such a pro¬
(if all the loans were
medium-term) and 10 times (if
they were all short-term)
crop
bales
the Crop Reporting Board of the
United
States
Department
of
times
four
12,558,000
Aug. 1
pounds gross weight is forecast by
average
of 25%
of
1943
requir¬
ing a 50% sinking fund in gold at
maturity, would normally require
nor
a
.
are
made
ratio is fixed is not made clear—
the United States,, are deposits of three months or less
no
more sensible from
the eco¬ (presumably this means obtaining but they are not obliged to keep
months banking credits). them stable with reference to the
nomic standpoint, than tariffs be¬ three
The value of that
(2) Issuance of short-term (3-12 IRB dollar.
tween Pennsylvania and Colorado
or
between
California
and mos.) paper. (3) Issuance of 5-15 dollar, in the international ex¬
Florida.
2. Our tariff policy, for year medium-term bonds guar¬ change market, would, therefore,
anteed by member countries.
(4) be highly problematical so that,
the past 25 years, and in spite of
guaranteeing medium- while borrowers might be ex¬
Cordell Hull, presents a tragic ex¬ Through
term obligations of members.
In pected to be eager to borrow
ample of the political triumph of
under the plan, there seeems no
case of liquidation these liabilities
local pressure groups over the na¬
sufficient inducement on lending
tional
interest.
3. Our
tariff shall be a prior lien on all assets
except those segregated in the countries to lend, or to accept
policy, in the past 25 years, while
A gold reserve payment for their exports, in irre¬
•benefiting us but little, has done Clearing Fund.
deposit accounts.
of 10%
or
more must be kept deemable IRB
untold mischief abroad, to em¬
against all obligations maturing The IRB, therefore, would ap¬
ployment, to credit, to the gold
become
a
"lending"
within a year, and other obliga¬ parently
standard, to political stability. 4.
tions
shall be serviced
by an agency ony to the extent of the
An objective observer, an econ¬
internationally
salable
dollars,
omist
from Mars,
let us say, amortization fund in gold suffi¬
gold, etc., it could deliver and its
would be stunned at the spectacle cient to take care of at least 50%
of the obligation on maturity, the usefulness would be limited very
of
trade
average
an
monthly covered
This, however, can be said, that,
acceptance of IRB dollars is
or
No other
showed
bined
once
bank.
And its re¬
demption in gold is not arranged
for.
/i
.
.
retail
and
deposits, through sale of govern¬
the public
or to the banks.
There are other
ment bonds or notes to
stance, and
currencies, presumably) in
amounts equal to the sum of its
Industrial. Bu¬
Association's
"981,339 , were
employed
in
the Treasury procure the dollars?. manufacturing industries, and 1,Presumably, unless gold
certifi¬ 418,184 in non-manufacturing. In
non-manufacturing
group,
cates could be issued against IRB the
and try to
competing foreign goods.
'4,v:
prepared, by
ciation, further said:
legal tenden dollars to
exporter.
But where would
the
provided.
countries
Broadly
speaking economists
must keep their own currencies
would defend the following gen¬ capital funds plus "permanent de¬
eralizations:—!. Tariffs
between posits." ..Permitted methods of stable with reference to gold—-al¬
foreign countries, Canada, for in¬ borrowing are: (1) Accepting time though at what ratio or how that
these
/■'•■.
chart,
graphic
reau,
liver U. S.
"Gold
compulsory upon
A
the
and given a
made
country
York.;'.. ■'■•'•V
New
/;
gold content solution, as has already been in¬
of 1/35 of an ounce of standard dicated, is that, unless we change
fineness, is not, apparently, made our tariff attitude, we will get
legal tender in the U. S. A. or any nothing for our goods except these
other country.
Its acceptance is irredeemable "dollars." Pressure
Dollar"
laws, compiled by the Com¬
and Industry Association of
ance
accept
to
^
of workers, covered
the Unemployment Insur-.
survey
shows the average monthly
employment of covered workers
foreign bank and the foypign, bank
in 1942, in all industries, totaled
borrowed
the/ (negotiable) IRB
2,399,523. This, says the Associa¬
dollars, with the draft as collater¬
al, from the IRB and sent the tion, is over 18% of the total com¬
bined populations of the next ten
American exporter his check, pay¬
able in IRB funds, some agency largest cities in the country. ,The
advices made available on Aug. 14
here, presumably the U. S. Treas¬
by Roy C. Elmendorf, Manager of
ury, would be bound to accept this,
the Publicity Bureau of the Asso¬
check at its face value and de¬
preceding ten years.
monetary
a
price fixed,
Keynes plan.
Then,
when an American exporter drew,
on, his foreign
customer and the
customer handed the draft to his.
than the average paid
borrower's own bonds in
"The
required
are
bapcor, at
under the
In the past-
to
dustry to the welfare and progress
of New York City is indicated jn
is made acceptable by,
j gold,
countries
:
importance of private in¬
The
member countries just as member
International clearings are
week a sixth plan
managed by the Board with sep¬
has been published in the "Chron¬
balk
arate clearing balances for each
billions if we have to to finish the icle", by Dr. Melchior Palyi of Chi¬
country, withdrawable on 60 days
He proposes an interna¬
job and secure a sound peace. If cago.
notice, of $500,000 in gold as a
we are wise we will not lose this
tional lending agency called In¬
minimum.
50% of the minima
added money because, if we de¬ ternational Reserve Bank. Its unit
and 80% of balances in excess of
cide to refuse to accept repayment, of accounting is a dollar contain¬
minimum are to be kept in gold,
under any of the other plans we ing 1/35 of an ounce of gold of
the rest in internationally mar¬
can
still get something substan¬ standard fineness.
Memberships
ketable, two-name (one a bank),
in the Bank are purchasable by
tial under that of Mr. Dewey.
short-term paper drawn in any
On the second question, how far each country at a cost of 5 million
gold standard currency.
In Mr.
should we be willing, under any dollars of which 2.5 millions are
Palyi's comment it appears that
to be in gold and the remainder in
plan but Mr. Dewey's, to reverse
debtors
owing
"abnormal bal¬
currencies
or
banking
our
traditional Republican high local
ances" can borrow to the extent
Votes are to be in ratio
tariff policy, and, when it comes credits.
of these balances, or, if preferred,
of one vote for each 5 million dol¬
our turn, accept deflation and un¬
the creditor can list the balances
lars contributed and contributions
employment and competing for¬
as
part of its own "permanent
Of the net earn¬
eign imports?
For that is the may be larger.
deposit" with repayment due in
test, and, unless we do reverse ings 75% are to be paid to mem¬ 20 year installments.
this policy any exports under any bers in proportion to their con¬
A necessarily brief study sug¬
and
25%
to capital.
of the other plans will be given tributions
There is some compulsion to join, gests the following comments on
away by us as
similar exports
the Palyi plan.
were
given away after the last because members, while forbidden
we would seem foolish to
at spending another twenty
war,
clearer,
bank
the
of
th$ IRB dollar, at its fixed price
more
the
on
the potential
to make
fit] of all doubts and suppose that
in
counting, with collateral required
lesson when the loan exceeds in amount
even the Keynes plan, if properly
the
member's
"permanent de¬
consequence, run
modified, should do us no harm. posit."
Foreign assets are "pref¬
tion.
It reads, "It is not contemplated erable" as collateral.
After two
There is a final possibility that
that either the debit or the credit years, renewals are to be discour¬
what the "Economist" calls the
balance of an individual country aged.
"Intermediate credits" are
"onus of securing desired changes
ought to exceed a certain max¬ to be sharply scrutinized as to
m
international payments" may
imum—let us say its quota." That purpose, collateral, budgetary and
have been shifted by the Keynes
would mean that our net sales on currency practices, and the bor¬
plan from
the debtor nations credit were never expected to ex¬ rower
may "be asked to regulate
which, in a way, he represents, to ceed 4.5 billion dollars. That ex¬
his economy" in such respects. The
the creditor nations who can bet¬
pectation, if only we refuse to results of the scrutiny are to be
ter afford the burden. This might
sterilize gold and raise tariffs and made public for discussion a
be all right as a temporary matter
so on, is a reasonable one, and, in
month in advance.
Intermediate
until the gold standard is rees¬
time, our credit balance should credits may be used, (1) To liqui¬
tablished but should not be over¬
work down to zero.
The plan can date debts owing other members
looked by the creditors as a pos¬ certainly be improved, by incor¬
(including debts on abnormal bal¬
sibility in their appraisal of the
poration of the best features of ance account).
(2) To finance
plan.V
the Morgenthau and the Canadian
special purchases. (3) To stabil¬
American Interests
plans.
Purchases of war mate¬ ize exchange. In the latter case
Two major American interests
rials, such as suggested by Mr, the funds made available shall be
in these plans are:—1. How much
Dewey, would be a useful adjunct, "kept in the hands of the IRB and
ought we be willing to contribute, cushioning
deflation
when
it used in its discretion. The bor¬
through this and other programs, came.
But the Keynes plan is rower agrees to limit use of any
toward giving hope and aid to
ample to win us friends abroad funds to the specific purpose in¬
war-torn
Europe and
Asia? 2.
during the war. It would provide dicated; to forego increases of
How far should we be willing, in
a
useful barometer of disequilcurrency or bank credit (presum¬
the
post war world, when it ibria in world trade and a strong
ably during the life of the loan);
comes our turn to deflate through
incentive
toward
curing
them also either to eliminate budgetary
accepting foreign imports, to let when they arise. If we decide on
deficits altogether or else to fi¬
competitive foreign goods come tariff sanity we need not rule it
nance
them through long-term,
in, instead of, as in the past, rais¬ out.
And no intelligent decision non-banking sale of bonds to pri¬
ing tariffs, depreciating the dol¬ can be made on these plans until
vate buyers. The interest rate on
lar, and so on. 4 ■ j-. ■
we do decide about our tariff pol¬
IRB intermediate loans must be
initiate
in
plans
however, let us give it. the bene¬
authorized by a two-
lending is limited to
other
In order
cluded from voting. The
term
the
usefulness
:
Lending is confined to
and must be
it
helping European reconstruction.
country
that may
As
than
weaker
Of
Private Industry In
New York City
Charts Progress
stands it is
it.
into
put
Lending to any
value each year.
Thursday, August 19, 1943
CHRONICLE
COMMERCIAL & FINANCIAL
Yields well
above average, how¬
indicated for all States
excepting California and Arizona.
ever,
are
conditions
thus
far
generally
Weather
have
good
for
been
growth
development of the
Stands are unusually
and
cotton crop.
good
the season has been
with most areas free from
and
warm,
excessive moisture.'
rainfall
Excessive
Seaboard
ern
first
half
in
States
of
July
the East¬
during
the
increased
the
threat from weevils in that area,
dry hot weather during
but
last part
the
check
to
damages
from
this
Infestation of weevils in
source.
all
the
of the month has helped
States,
reported by
as
corre¬
"stabilization" spondents on August 1, is below
for
1942
when - loss from
one-way movement of money, that
any "clearing" of a one-way
weevil was about average.
There can be no
of
a
of goods.
movement
ists
J
Money ex¬
of ex¬
and no manipulation of
however ingenious, can in
The
crop
largely as a medium
change,
money,
than usual,
to two
is
generally
earlier
being from one week
weeks early in most areas.
compensate for lack As the result of floods in May and
ofactual
exchange..
That ex¬
early June, the crop in Missouri
change the debtor, alone, cannot
the long run
4
force.
and
in
parts
Arkansas
.
Oklahoma
and
invites
usual.
views ex- .
Harvesting is progressing rapid¬
pressed in" this article by Mr..
ly with the census report showing
Cist, or on any related phases
of the subject under discussion.
ginnings to August 1 at 108,653
Comments should be addressed
running bales from the .crop of
to Editor, Commercial and Fi1943, compared with 48,626 for
nancial
Chronicle, 25 Spruce
1942 and 1,969 for 1941.
Street, New York (8), N. Y.
The
CHRONICLE
comments
•
of
is somewhat later than
on
the
Volume 158
•>.
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4204
supposed
We Must Make Up Our Minds
r
stroy.
(Continued from page 089)
mand
tariff
protection on the sharpen all the latent antagonisms
our
national
life—between
ground
that
German
manufac¬ in
tures
and labor,
competed
with our , own capital
debtor and
products. Or if Argentina should creditor, agriculture and indus¬
seek to pay for American automo¬ try, East and West.
biles by sending us corn and beef,
Clearly, then, it is questionable
farmers
our
would
protection for their
and
grown :corn
demand tariff
whether
foreign trade and foreign
American- investments can be depended up¬
own
beef.
either
In
to maintain maximum produc¬
tion and full employment in the
on
the difficulty of securing for¬
eign exchange to settle interna¬ post-war world,
case,
y'pp-yy: •//;'
\
tional balances would tend to bar
products from other markets.
our
Prosperity
Through
Internal
Our
Developing
Market
is significant, in this
•
In the "Chronicle" of Aug.
that Argentina is the one
5,
South
American
country which Mr. E. S. Pillsbury, of Century
has steadfastly refused to break Electric Co., of St.Louis, in an in¬
off relations with the Axis.
Ger- teresting
letter
discussing this
man manufactures and
Argentine question, used the following quo¬
food products complement
each tation, which he attributed to W.
(It
-
spect,
other and form
natural basis for
A.
Manford, an economist.
We
trade, whereas we raise our tariff give it in full because it states
barriers against Argentina's ex¬ succinctly the point of view of
ports because they compete with those who believe that the solu¬
our
own.
a
No
.
"Good
of
amount
tion of the
problem of maximum
permit other countries to bal¬
their
ance
trade
with
nomic
by the
us
exchange of products, there would
to be
seem
a
of
of
means
foreign: trade
maintaining
goods ;
as
in¬
our
ran
ence
reaches
hands
Subsequently, such trade as we
was settled for in
gold, with
the consequence that we now have
80%
some
supply,
of
the
which
world's
don't
we
gold
know
what to do with.
•
The
policy of "autarchy," or
tional
self-suffiicency, so widely
adopted in recent years, was the
direct outgrowth of this situation.
With
its
collateral
"blocked"
policies
currencies
and
of
ex¬
our
standard
own
to
imports, is
country, rais¬
our own
Stated
cult
needed
our
of
living
of
people."
thus
simply, it is diffi¬
refute
Mr;
Manford's
ar¬
that
if
maintained
we
maximum production and distrib¬
uted
"buying power yi w i d e 1 y
enough to
products oil
the market, there could be a con¬
siderable
carry
our
increase
standards
of
in
the
living
people.
Our
our
income," measured in
dollars, has fluctuated from $40
billions in 1932
to around $120
billions in 1942, and this year is
expected to go higher.
The dif¬
ference, of course, is due to the
But
control, it put foreign
if enough
"buying power" were
trade, especially in the Fascist
distributed, there is no theoretical
countries,
under
the
complete
domination of the state, where it
became a potent weapon of eco¬
nomic warfare.
.
At
will
the
be
end
of
ferred
same
problem of re¬
torn countries
war
demand,
abroad.-
at
home
and
This may give us a brief
of relative
interval
"prosperity,"
in which to make preparations for
the inevitable time when
foreign
nations
not
to
buy
from
us
or
products by sending
If then
war,
our
cline
and
for
their
our
own.
as
accept their
did after the last
we
foreign
trade
will
industrial
our
along with it.
.
de¬
activity
-y;.
abroad
might postpone this out¬
but only temporarily.
In¬
terest on American money loaned
abroad could be paid only as we
accepted their goods in our mar¬
come,
kets,
while every factory built
by American capital in a foreign
country would become a com¬
petitor with our own industry,
,
especially when built in countries
having a much lower
living. /
Mr.
and
should have to keep our own
costs down.
This would mean a
we
prices,
strict
of
low
which
the
in
wages
and
turn
would
internal
writer
market
in
as
low
re¬
may have to decide what to do
with millions of demobilized
soldiers
and
workers.
war
at
jobs, lest they fall under the
of
demagogues who might
down the whole edifice of
tional life.
And
equally,
overwhelmingly
our
We
dare not turn them adrift without
way.
It may well be that the war at this time is
final stages.
How far away<S>-
its
sway
will be the
dare
not allow our industrial
activity
to sink to the levels that prevailed
during the depression, lest we de¬
stroy the tax base necessary to
we
possibility that
the
pull
our na¬
Balkan
tide
to
seems
of German cities and manufactur¬
ing centers from the air and the
be
running
strongly and inexorably in favor
must
Japanese
terpreted
prediction that
is inevitably at
any
risks
who are on the defensive and
have the initiative, a reversal
of the pattern of the six or eight
dangers attendant upon the
attempt, we shall have no alterna¬
months following Pearl Harbor.
Mussolini
has
gone
and
the
of
Hull That the only
course
tive
Italians find themselves in
nation
is
service
which
In
the
colossal
shall end the
we
spite
of
the
now
with
war.
,
admitted
and
the
to
but
to
at
all
costs
industry.
rick
the full product of our
We
on
a
balance
must
high level of
pro¬
Nazis
to
this,
we
shall need,
purposefully, to follow
and
dominate
be
an
populace
the
war
and
peace
that
the
a
as
long
as
the
country.
vaunted air power,
must
the form
of low
at
a
those
Other decisive factors of
in
can
arms
technological progress and
employment
of
facilities.
Wages and salaries (representing
by the
with
war
this
taught
over?
lift
the
depressed
classes
to
What
furnish
produce.
a
the
war
did
market for all
a
peat
i
security
legislation must be
liberalized, and slum clearance
and housing undertaken on a vast
scale.
mass
There
poverty
facilities
must
be
while
on
as
for
no. more
war.
as
New York
an
the
post-war
period
go
balance
ducers'
goods
and
our
investors
find
it
we
only
can
"gum
raises
may
highly
in
up
of questions
disproportionate
level where
a
reasonably
grade
ket"
how
see
"expand the internal
sufficiently to attain
they will
"shock
we
bonds
regard
absorbers"
are
to
and
these
may
be
offer to buy, the securities
constitute
an
;„J
imum production without
an
elab¬
of "planning." Labor
and capital must be shifted from
many
fields, where
duce
an
others.
we
exportable
now
pro¬
surplus
Share
To facilitate the
offering, it is intended to stabilize the price of the Common Stock of the
the New York Curb Exchange, on the over-the-counter market or other¬
wise. This statement is not an assurance that the price of the above
security will be sta¬
Company
bilized
or
to
on
that the
stabilizing, if commenced,
may
not
be discontinued at
any
time,
The whole machinery
of
foreign trade must be revamped
and brought under governmental
control.-
national
ferent
/
max¬
orate system
The
distribution
income
groups
as
of
between
would
the
Copies oj the Prospectus may he obtained only from such of the
undersigned as are registered dealers in securities in this State.
aim:
2MJ
dif¬
produce
Hallgarten & Co.
tremendous problems and stresses,
probably necessitate attempts
profits and prices by
governmental decree.
In
short,
pand-the
the
Blyth & Co., Inc.
"ex¬
market"
con¬
internal
Paul H. Davis & Co.
ceivably might take us a long way
down
the
and'totalitarian
road
Central Republic Company
(Incorporated)
attempt to
toward
dictatorship
that
we
very
are
August 18, 1943.
on
-
Metallurgical Corporation
Price $19 per
days
if
the
ahead.—Ralph E. Samuel &
co.
an
pre-
necessary
of
we
;
negotiate smooth¬
ly the bumps that
road
LIGHTBOWNE,
City, Aug. 18, 1943.
as
Common Stock
mar¬
to
equity
"ex-worry."
corporate
investors
\
(Without Par Value)
long
the
profitable
pro¬
consumers'
the utmost gravity.
It is difficult to
could
Fanstecl
fre¬
recent letters; viz.
53,566 Shares
"buying power"
the works," and
host
a
par¬
re¬
said 'so
have
dealer to sell these securities in any State to any person to
whom it is unlawful for the undersigned or such dealer to make such offer in such State.
with
between
and
Unused
in
ways,
are
one
or any
on
we
when
unexpected
the
what "we
The offering is made only by the prospectus, which does not
by the undersigned
And
difficult; for it
in advance for the most
ferreds
for peace
it has produced
offer to sell, nor a solicitation of
eco¬
Cash, government bonds, high-
WM. G.
This announcement is neither
herein mentioned.
■
await
down to
be
demobilized soldiers,
efficiently
token attempt to
commitments and to reduce them
could
The demand called forth
our
point
a
duration
quite evident that
reduce
its ability to produce
production
and labor lie idle.
offer
by
hat
run
The capital, labor
higher standard of living, for only the supply.
as
buying power is widely dis¬ and resources were here all the
Our system of free enter¬
tributed
will
it be
possible to time.
maintain full production.
Social prise will be judged,' by history
and
of
war's
degree of clarity
of
quently in
to
was
we
sort
surprising happenings.
largest single block of buying when faced with an emergency,
power) will have to be regulated, our system of free enterprise is
not downward, by competition for capable of performing miracles of
jobs, but at the highest levels production. Why, then, should be
compatible with continued indus- slump back into depression and
1 rial activity.; : \
unemployment when the war is
T
Where necessary, a floor must be
under wages in order to
the
these
fair
dynamic
a
prepare
that
us
with
same
Consequently
has
which
violent
-
the
is extremely
must
Ameri¬
the
placed
to
a
something
full
The
and
nomic and political pattern.
production, the blasting
fits of
the?- amazing
for the
one
investments
some
as
see
course
seen
we agree
statements
charged
of
have
and
are sweeping
prodigious rate.
are
prices the bene¬
pursue
a
of view
abortive
was
recent
days cannot proceed altogether on
any such categorical basis.
One
difficulty in ob¬
offensive
to
But
recent months, appears
thing of the past and the
summer
contrary,
Secretary Knox and Secretary
supervision
On
the eastern
front, where
perhaps the "Sunday punch" is
going to be delivered, the German
cer¬
On the
long
struggle ahead.
taining mastery of the air whereever and whenever
they choose.
accomplish
deliberately
peace
assumes
on
a
early
fully with the
im¬
the
of
Allies have little
living
standards of the American people
as will lift us to
heights of pros¬
perity never before achieved by
But to
tired
Germany's
based
The reward for this effort will
be such an increase in the
people.
and
for peace,
Italy cannot effect
by
any
dilemma;
howling
our
making it possible
own
people to consume
product of their labor.
our
the full
hand.
possible
ability of the internal market
absorb
for
maintain
an
we
debt
It is not
be spent, and spent
proper
and
as
may
think,
to
ticular, predetermined
this
Germany's
not hold on
much longer.
Now all of this is not to be in¬
of the Democracies.
In the Pacific it is the
of
some
Allies
simple
enough that sufficient "buying
power" should be distributed—it
a
whirling along into
end, or the pattern of
those final stages, of course de¬
fies prediction.
But on all fronts
peace
to
seems
wants
admitting it.
as
to fix wages,
com¬
pete in the international markets
policy
problem is not
Pillsbury
the
record
standard of
Furthermore, in order to
production
attained
,
Investment of American capital
■
we
ductivity
•
one somewhat of a shock to realize that a few
weeks
will be marking the fourth year of World
War No. 2.
These have been four long and hard
years, blue and discouraging
times but now, fortunately, the outlook seems
we
NEW ISSUE
But the
would
refuse to
we
products,
pay
us
equal
an
be
time.
will run
completely out
goods.
valuta, and must either cease
of
•
why
should
there
war
tremendous reservoir of de¬
a
reason
as
the
habilitating the
and
this
It gives
hence
matter of months
a
in
demands created by the war.
change
In
be,
not
seems
"national
na¬
theory.
will
and
or soon
condition
a
westward
doubt
did
are,
Anniversary
Of The World War Out!
and the Soviet lines
gument, although there are eco¬
quently defaulted on their debts.
nomists who deny that "the total
We maintained for a brief period
costs of producing
them, includ¬
a* semblance
of business activity
ing interest and profits," equals
by sending abroad goods we might
the final price of goods.
There is
have used at home, and for which
no
paid.
we
with
Theory
a
Industry will have to operate on
the narrowest feasible margin of
profit, passing on to the public in
for
right in
ing the
of
illusory
prosperity—
illusory because much of it was
we were not even
Near At Hand—Fourth
tain social and economic policies.
pay
years
eventually
de¬
as
power,
>,
The market for all
goods, other
than those we must export to
few
based upon our own money loaned
to other countries which subse¬
one's
some
But
to
and
thus
automatically enable the nation
to purchase its total
product.
during the
a
imports.
purchasing
habilitation of war-ravaged coun¬
tries plus the filling of the civil¬
us
more
for its
Whenever
pay
produced, the total
producing them, in¬
interest
and
profits,
cluding
tlje whole gamut of experi¬
with foreign trade. The re¬
ian needs dammed up
first World War gave
export
to
are
of
costs
dustrial activity. '
v. In
the period between the two
World Wars, the United States
to
enough
needed
distinct limit to the
a
possibilities
system
than
fighting
Condition and Not
faced
a
fre
■
economy
Neighbor" sentiment is likely to production and full employment
upset this elementary economic lies in developing the home marsituation, once normal peace time ket: a.,^v V'
trade relations are resumed.)
"There is no need for any na¬
Unless, therefore, we find a way
tion
with
an
intelligent ecoto
A
to
-
701
Paine, Webber, Jackson & Curtis
Thursday, August 19, 1943
FINANCIAL CHRONICLE
THE COMMERCIAL &
702
DIVIDEND NOTICES
Willkie Says
Republicans Can Win In 1944—
Urges Liberal Foreign And Domestic Policy
Trading Markets in
Active
Preferred
General Gas & Electric $5 Prior
York Stock Exchange
Members New
Street, New York 5, New
49 Wall
disagreed with contentions that
the Roosevelt Administration
would be returned to power in
1944 if the war was not concluded
-
York
by that time.
Republicans "must pre¬
the people a constructive,
domestic program of ex¬
the
win
sent to
liberal
Public Utility
panding economy" and "must have
the imagination to present a real¬
istic foreign policy."
Mr.
Willkie's
statement
was
Securities
Utilities As "Peace Stocks"
read
Utilities
substantial part of their popularity in the past
a
owe
to
a
group
the
of
leaders
founded upon
of Republican
Eighth
Indiana
ideal "peace" stocks. There will be no Congressional District.
The text of his statement fol¬
to peace. While new peaks in power out¬
put are being established almost weekly, and current output is run¬ lows, according to the Associated
Press:
ning about 70% over the pre-war level, the increased net earnings
"It has been suggested much of
have been taken by the Federal Government, as indicated by the
late that the present Administra¬
following figures (millions of dollars):
Increase
.121
Depreciation
taxes
taxes
Fixed
Net
}
—
317
293
18%
404
539
499
25%
—_______
The
larger by $252,000,000.
balance for
common
stockholders
garbage
disposal units, electric
dish-washers, better electric re¬
frigerators and toasters, television,
improved
electric
steam irons,
Most important 6f all is a startling
would have gained
system
houses
heating and -cooling
electric air-condition¬
of
this,
by
68% over' 1939.
net
income
dropped 7% and profits for com¬
of
machine.
This
makes use of a newly developed
mon
stockholders 11%.
Thus the utilities actually lost "reverse-refrigeration cycle," al¬
ready in practical use, by which
money in 1942 on their war-time
(though they are doing
business,
currently) and the
little better
a
of
expectation
in
taxes after
substantial
a
the
is
war
an
nearly four times as
for
large
industrial
customers. In the past three years
sales to residential customers in¬
creased 28% while factory sales
as
gained 73%. After the war, there
will be a huge pent-up demand
for
new
radio-television
sets,
machines
and
"household"
electric
all
sorts
gadgets.
Increased revenues from residen¬
partly offset the loss
and will yield
better profit margins.
According* to a recent writer in
the Saturday Evening Post, Gen¬
eral Electric has been studying
tial sales will
of "war" revenues,
post-war outlook intensively.
Their
experts think we should
have a national income of $140
the
billions, and to avoid depressions
should
spend $26 billions a year
for "permanent
G.
basis
run
E.
nearly
level.
They
sively for
everyone,
things."
sales
are
On this
expected to
double the pre-war
are planning inten¬
"electrical home" for
rich and poor—electric
an
These
developments,
new
spite the
vice average
of
machine does both jobs.
same
im¬
savings.
Present huge sales of power to
war factories are on a low-profit
basis.
Rates for residential ser¬
washing
the
one
planned behind locked doors de¬
creased costs by tax
high
using
ing
cut
portant bullish factor. r On the
other hand, if we are in for a post¬
war period of inflation,
it is un¬
likely that taxes will be substan¬
tially reduced. In that event, the
high tax rates will supply a strong
cushion against higher wages and
materials, • since
most
utilities
would be able to offset 80% of in¬
opinion, I disagree. As a mat¬
ter of fact, for the successful con¬
clusion of the war, the necessary
rehabilitation of the country after
the
increased only®>
proportion of state and
local taxes during the war period,
net income in 1942 would have
Instead
j
358
the
been
226
'
pressure
of war work,
huge increase in
residential demand for electricity.
should
create
a
This will mean lower rates,
which
will
Washington
,
"juice" to domestic consum¬
ers
than other companies).
The
cost of furnishing the increased
current
will
be
comparatively
more
small, hence the utilities should
make
larger profits even with
lower
rates.
The
great
new
stocks
industry for the exploi¬
of
tation
radio
popularity of the
recognizes a
recent
"electronics"
innumerable
Electronics
tubes.
uses
of
devices
throughout factories,
will be used
shops, theatres and homes for all
sorts of control jobs.
This means
increased consumption of electric
and
current
more
work
for
the
utilities.
Another post-war
factor favor¬
is the current mass
production of power turbines for
the Navy and for Victory ships
(we are turning them out six
ing utilities
times
as
fast
as
ever
before). The
costs thus
readily devoted
improving the
efficiency of our utility plants,
thus sharply reducing operating
and
experience
gained
after
can
the
lower
be
war
to
:'
costs.
of
Fear
Government
competi¬
tion against
the utilities has large¬
ly waned. Congress will no longer
vote huge sums for new hydroplants
are
admittedly more effi-
the
can
W. P. STURTEVANT.
Secretary.
V
•
of
evidence
liberal mind.
a
Company
liberal
the
program
a
Republican
party must completely forsake the
tempting notion that it can win by
the amalgamation
of the dissident
groups in
America—the narrow
ple a constructive, liberal domes¬ nationalists; the economically self¬
tic program of expanding econ¬ ish, who think that government
exists merely for their own-selfomy, developed primarily through
the forces
of private initiative interest;
the
people who
are
equitable distribution of
afraid to fight or are
profits and social benefits
among labor, agriculture and in¬
dustry.
We must pledge that the
Preferred Dividend NoPi 50
Common Dividend No. 134
quarterly dividend of 7 5 if per share
on the Preferred Stock for the
J.
of
"In addition to the adoption
Re¬
we
American
Bank Note
purposes;
publicans must present to the peo¬
( ilA % )
quarter ending September SO. 1943, and
dividend of 15 if per share on the Coin-
a
Stock have been
won
dends
declared. Both divi¬
payable October 1, 1943, to
arc
holders of
record September 13. 1943.
books will remain open.
The stock transfer
'
J. P, TftEADWi-Lr,, JR.
Secretary
July 28, 1943
sacrifice unnecessary
with
an
the
will
with
conducted
be
com¬
petence and economy.
present
imagination
realistic
foreign
execlusive recog¬
a
much
co¬
councils and
in world
operation
active
and
treaties with other nations
for the
preservation of the peace; and for
the establishment of stable me¬
diums of international exchange
and the elimination of unneces¬
sary
trade barriers to the end that
there
be an enlargement
may
commerce
the world.
of
the peoples of
among
'
must
Republicans
affirmative, eschew
"In other words we
occupied countries;
recognizing the wisdom of Amer¬
and
effective
racial
negative.
has been led too
"For America
last
At home we have been
the negative in the
in
few years.
and
disunited
substance
our
COMMON
A
NO.
DIVIDEND
77
twenty -five cents *( $0.2 5)'
dividend of
»
shave on the common stock, without
par value, of this Company has been dejclared, payable September 30, 1943, to 1
stockholders of record at the close of ;
business - September. 7* 1943. Transfer ,
books will not bo closed. Cheeks will be '
per
must take the
the
ica's
religious; and
the
pletely
policy, based on
nition of the democratic forces in
enemy
MFG. CO.
for the common good.
Above all, it must repudiate com¬
necessary
bigots.
"We must have the
to
AII1S-CHA1MERS
the restrictions
without complaint
administrative and reg¬
ulatory processess of Government
unwilling to
luxuries and
refuse to endure in wartime
who
necessary
divided, spending
in wasteful ;> ex¬
the world, our
obligations in
part at least caused the frightful
toll in life and property of the
In
travagances.
to
failure
W. E. IIAWKTNSON,* 4
\
Secretary-Treasurer./■
Fuller Urges
Business
assume
present war.
"The
mailed.
August 10,19^3.
must
party
Republican
point the way to an affirmative
America—America as she can be
War
Unemployment
'
President of
the Curtis Publishing Co., told a
recent meeting of the Philadelphia
Committee for Economic Develop¬
ment that businessmen must plan
and find the solution for post-war
Fuller,
D.
Walter
enlightened
and liberal
leadership—at home, united, pros¬
couragement
to
the advancing perous and socially advancing—
forces of liberty throughout the
abroad, respected as a practical unemployment or else the Gov¬
world.
worker for world peace and eco¬ ernment will try to do it and lead
"But in addition to these pur¬
nomic development and the leader to regimentation.
Mr. Fuller, a former President
poses, we must also see to it that of
the gathering forces
of en¬
our country after the war is over
of
the
National Association of
lightenment and independence.
retains adequate military, aero¬
Manufacturers
and
Regional
"No party was ever presented
nautical and naval strength to im¬
Chairman
of
the
Philadelphia
with such an exciting challenge as
plement and, if necessary, protect
CED area, declared that "surely
is offered to the Republican party
and enforce, its foreign policy.
,
"America
"It will be
and
under
give
also
en¬
through such foreign
of enlight¬
that we will
domestic policies
self-interest
ened
best secure a prosperous
at home and peace
world.
For these
today
the neces¬
prerequisities to creating jobs
and opportunities for our return¬
ing soldiers and sailors, legitimate
prices for the products of our
sary
to
still have
by the
Congress is be¬
defer the, death
To
Federal regulations
sure,
win
to
do
we
with
American
is
such purposes, and to
have the courage
you
of
to face an oppo¬
and
entrenched
sition
power.
truculent
As one devoted to
Republican party, I ask
in this the most
our
need
to convince the
people of our sincerity
and faith in
with
such an oppor¬
All we Republicans
tunity.
the
be
nor
economy
throughout the
are
urged to
against
ing
holding
sentence
panies "for the
would give us
to join
stirring cause
time."
duration"—which
breathing spell
Utility Act.
Obviously,
the
been
and while
the
utility
to
stocks
market
there may have
speculative excesses in
mercurial holding com¬
some
more
issues, there is room for fur¬
ther improvement in many of the
pany
sound operating company
stocks.
are
having sufficient experi¬
the penalties
with
ence
mentation at the present
that none of us
Purolator
Products,
Federal Machine
offer
attractive
Inc.,
and
and Welder Co.
possibilities, ac¬
& Co., 120
Broadway, New York City, mem¬
bers of the New York Stock Ex¬
change.
to. Reynolds
Interesting basic reports
upon
the companies may
from
Reynolds
&
Co.
be had
upon
re¬
regimenta¬
businessmen to do this
biggest job of their
lives."
business
Urging that American
find
50%
the
within
way
gross
two
volume
from 25 to
1940 levels, Mr. Fuller
over
by taking
else
new,
ket."
but
use
that, not
business from someone
by creating something
either a product or a mar¬
He^
expressed
that this can
ness
years
of the war to in¬
stated that "we must do
ican
quest.
further in posti
dangers of such
tion is for
time so
Yet the only solution
years.
to the
of regi¬
wishes to see that
condition carried
war
crease
Situations of Interest
cording
restored
have
favor
been
revisions
we
after the close
com¬
a
to consider much-needed
of the
,
" '•
*
,
,
has been accepted as
proof of love of common man and
Republican party should and
Presidential and
Congressional elections.;
"But in order to win,
political
for
SEC and FPC, but
ESTABLISHED 1879
of record at the close
September 11, 1943.
business
of
penditures
win the next
severe
Paine, Webber, Jackson & Curtis
able October
of such stock
extravagance in public ex¬
when
and the enlight¬
policy,
over,
cient.
UTILITY PREFERREDS
of the Company, pay¬
1, 1943 to. the holders
Stock
mon
by turn exploited and then
protected
ened conduct of our foreign
(some
please
companies in the south and west
with low residential rates sell far
is
war
(15c) per
have
machines
ical
this
371%
the
when crass polit¬
dictated the
ernment service;
been
66%
'
402)
in 1944 if the war has not
concluded by that time; With
quarterly,
outstanding shares of
Class "A" and Class '"B" Com¬
share on the
appointment of foreign Ambassa¬
dors
and
high judicial officers;;
when our; minority groups have
returned to
tion will inevitably be
143%
294
1,011
798
(140
(212
400
charges
income
's
249
166
600
250
Had Federal taxes
in
85%
212
609
....
Expenses
Other
2,611
'
gust .17, 1943, declared a
dividend of fifteen cents
period when failure in private en¬
deavor has been a passport to gov¬
been
1926-1942
2,148
1,640
Revenues
Federal
1942
of Ameri¬
Company on Au¬
Cyanamid
can
competent
under
economy
power
1939
1933
COMMON DIVIDEND
The Board of Directors
private management, with the en¬
couragement of competently ad¬
ministered government.
"We must put an end to the
transition problem from war
1926
,
of the Company, payable
1,- 1943 to the holders of
stock of record at the close
of business September 11, 1943.
such
of
functioning
the'practical
our
the
Stock.
October
Our policy must be
unifying our people
tered groups.
to the fact that they are
year
share
of
promises, or the division of our
people into warring and embit¬
for
Cyanamid
gust 17, 1943,
dividend
of
glittering and indefinite
not upon
Directors of Ameri¬
Company on Au¬
declared a quarterly
VU%
($.125)
per
on
the outstanding shares
5% Cumulative Preference
The Board of
can
farms, adequate wages and social
protection
for
our
industrial
workers and legitimate return to
enterprise capital.
"Ours must be a program based
order to
Mr. Willkie said that in
Teletype N.Y. 1-344
Telephone HAnover 2-9500
Company
PREFERENCE DIVIDEND
foreign and domestic policies
by adopting a liberal program for both
The 1940 Presidential nominee®'
Laurence M. Marks & Co.
American Cyan amid
negative"
"must take the affirmative, eschew the
that the Republicans
Preferred
Peoples Light & Power $3
Aug. 12 that the Re¬
on
publican Party "should and can win" the next Presidential and Con¬
gressional election.
■ ■■...■ %.:■ V.;V.;:
•
'-'v.1'
In a statement at his home in Rushville, Ind., Mr. Willkie asserted
Preferred
Public Service Co. of Indiana 5%
belief
Wendell L. Willkie expressed the
Preferred
Massachusetts Utilities Associates 5%
typical
American ingenious-
and plain
guts."
confidence
be done "if we will
every
day Amer¬
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4204
158
703
Broker-Dealer Personnel Iiems
Bank of
Royal Bank of Scotland
If you contemplate making additions to your personnel
please send in particulars to the Editor of The Financial
:;
\
Chronicle for publication in this column.
Incorporated by Royal Charter 1727
HEAD
OFFICE-—Edinburgh
Branches
NEW
throughout Scotland
(Special
YORK, N. Y.—Arthur P.
has joined the invest¬
Ambrose
LONDON
ment 1
i
OFFICES:
department
of
LOS
Ruth
Hayden,
Bisbopsgate, E. C. 2
5 West
49
MASS.
BOSTON,
Nichols is
Charing Cross, S. W. 1
has
John
—
& Co., 530
LOS
has become associated
iel F. Rice
£108,171,956
&
Company, 141 West
Ltd.
with
Giyn Mills & Co.
Pierce
A.
E.
Co.
&
for
ANGELES, CALIF.—Vir¬
with
Liability of Prop.
Head .Office:
30th
£150,939,354
DAVIDSON, K.B.E.,
General
b
r
8,780,000
Manager
s
CLEVELAND,
,
*
With
New
Zealand, Fiji, Papua and New Guinea,
London,
and
efficient
traders
it
offers
banking
the
to
Interested
Inc.,
In
47
>
Street, E.
OHIO —George
C.
>
Banks
with
the U.
throughout
8.
become
Goodbody
&
associated
Co.,
(Special to The Financial Chronicle)
•
LOS
National
ANGELES, CALIF.—Pay-
(Special
to The Financial
Chronicle)
1 PASADENA,
ber,
A.
Jackson
Motors
Curtis,
&
M.
Shearer
ing.
f;
KENSINGTON, N.
W.
of INDIA. LIMITED
the
to
Government
nected
with
Kidder,
con¬
Peabody
&
Co., 115 Devonshire Street.
in
FRANCISCO,
.
Cima, James V. Cirimele, and
Sydney S. Clark have joined the
staff of II. R. Baker & Co., Russ
Building. Mr. Clark was previous¬
ly with Bankamerica Company:
Colony and
Head
"
>■'
Office:
Uganda
(Special
26, Bishopsgate,
London, E. ®.
;
LONG
Branches
in India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar
E.
to The Financial
Chronicle)
BEACH, CALIF.—Mason
Kight
has
become
associated
with Pacific Company of Califor¬
Subscribed
£4,000,000
Paid-Up
£2,000,000
The
Capital
Capital...
Fund
Reserve
—£2,200,000
conducts
Bank
nia, Security Building. Mr. Kight
was previously local manager for
every
description
exchange business
banking and
H.
of
R.
Baker
&
Co.
and
Charles W. Derryberry and Fred¬
nected
pany,
with
Trusteeships
and
(Special to
William
'also undertaken
(Special
to
The
Financial
ter
the
Wells
of
been
Bateman,
added
Eichler
1
45
&
was
Mr.
previously with H. R.
(Special
Cairo
LOS
to The Financial
PAID
RESERVE
CAPITAL
FUND
LONDON
8
and
7
King
.
Dean
£3,000,000
Street,
in
principal
Towns
and
all
the
E.
the
capital
Chronicle)
CALIF.—Leo
stock
companies
Federal Anti-Trust Suit:
vin
Underwood
On
dismissed
affili¬
&
Co.,
(Special to The Financial
Aug. 6, 1943, Federal Judge E. Mar¬
anti-trust
action
Southeastern
Under¬
the
writers'
Association, twenty-seven
that, on November
20, 1942, the Federal Grand Jury
ut Atlanta, in a surprise move, in¬
dicted the above parties on two
combination
counts:
of
trade
in
restraint
Act
of
the
the
business
commerce."
not
during the
SAN
MARINO, CALIF.—Rea L.
& Co., 45 Montgom¬
San Francisco.
Mr.
Eaton was formely local manager
for J< A. Hogle & Co. and prior
Street,
Cook, Miller & Co.
with Davies & Co. and
was
is
the
of
Division
Federal
the
man¬
in
Court
Atlanta
it
hostilities.
Canadian Labor Minister Hum¬
What
both
beliefs
in
dicate is that investors and specu¬
lators always fear change.
phrey Mitchell announced at Ot¬
tawa on Aug. 14 the call to mili¬
tary training of married men. aged
result
27 to 30 and of all men who reach
tions.
the age of 18 this year.
technical
duced
fluctuations
by
the
nerves
was
118.8.
of
fire
United
in
many
serious
war
will
disloca¬
It
will, however, bring an
of working al¬
Press accounts from Ottawa Aug/ most solely for the destruction of
17, reporting this added:
life and property of the enemy. It
Associated
trend would
seem
to be well forti-
49.7
50.9
.86
.49
1931
,81
.48
59.2
.48
61.5
.34
45.6
1932
1933
1938
1939
1940
who
were
born in any
of the years
end
of
the
war
will
considerably
consumer
goods and
country
find
this
depleted in
many types
of
capital goods. A vacuum is be¬
1913 to 1916 inclusive.
Similarly, ing created which will take sev¬
eral years of intense production
the call applies to men born in
1925,
save
that none of these will
to fill.
At the end of the
war
the
.25
,69
--
35.8
.69
:
.27
38.5
.67
.28
42.3
.28
42.6
.67
;
'
.66
.26
39.5
.61
;
.23
37.4
for the lowering of
reason
is found in
the
declin¬
Fire Losses: In connection with
fire insurance rates,
and the burn¬
ing and loss ratios, it is pertinent
to review the country's annual fire
losses
over
by
period of
a
Fire Underwriters.
Of
the
1925
$373,501,000
—
1926
ward, and reached a new low in
As reported by
1942.
writer
393,021,000
-
320,596,000
1928
1929
the Under¬
and
Printer
•;
Insurance By
422,215,000
——
1930
Publishing
*463,613,000
-
452,017,000
—
442,143,000
-,w_
1933
316,897.000
•
(Continued
States," the average annual pre-
301,268,000
■
1932
Company in "Fire
years,
Interesting Situations
on
page
706)
STOCKS
INSURANCE
ance
Company
attractive
levels
Newark
at
by Butler-Huff & Co.
California,
210
West
Seventh
Street, Los Angeles, Calif. Copies
I
Huff, Geyer & Hecht, Inc.
offer
current
according to circulars being
distributed
of
of
situations
New
67
York
Wall
NY
PRIVATE
ST.
5
Boston
Street
WHitehall
Post
10
1-2875
WIRE
LOS
Co.
HARTFORD,
135
S.
La
Salle
FRanklin
Street
7535
CG-105
NEW
CONNECTING:
ANGELES,
SAN
Enterprise
6011
PROVIDENCE,
YORK,
FRANCISCO
TELEPHONES
may
3
Chicago
Square
0650
•
SYSTEM
LOUIS,
!)
Office
HUBbard
3-0782
BOSTON,
AND
CHICAGO,
SEATTLE
TO
PORTLAND,
Enterprise
7008
as
National Board
the
PRIMARY MARKETS IN
will have a greatly ex¬
of these interesting circulars
be
served with 'orders-medical'
panded credit structure and large
until he reaches the age of
18 quantities
of
capital
seeking be had from Butler-Huff &
profitable employment. In spite of upon request.
years and six months."
country
33.5
38.5
1927
will promote a rapid reduction in
Irving Trust Company of New
the call- government expenditures with a
not heretofore lessening of the tax burden. The York and The American Insur¬
and whatever their marital status,
42.8
.24
.27
ing "burning ratio" and "loss ra¬
der-in-Council extending
covered all men
V
.71
—
The
.31
.72
56.8
.71
—
Ihe rates
Van Alstyne, Noel & Co.
.
designated or already under arms,
.74
-
1934'
field by actualities.—E. L. Elliott,
"Mr. Mitchell said that the Or-
up
56.1
1930
down¬
continues
States
end to the process
The termination of the
in
rates
insurance
largely in¬
underlying
193
$1.15
.53
reported
Fire Insurance Rates: The trend
and
Call-Up
Of Men For Military
Ratio %
.65
.49
then it has steadily
Since
11, 1943, four days after dismissal,
Canada Extends
Ratio
-ui
Loss
•
Burn'g
Rate
.96
fire insurance
18, 1942, two
of
Nov.
On
105.4.
itself,
general predictions of impending peace in Europe have become
tempered.
The opinion is widely held that peace will be bearish from the
standpoint of security prices.
It will be remembered that before
the war in 1939, it was believed that the market would collapse in
the
event
of general
European^
Prem
tio," brought about by improved
building construction and better
fire prevention and fire fighting.
days before the announcement of
the surprise indictment, the index "Burning ratio" is the ratio of
was
104.1; by Nov. 25 it had total losses paid to the total value
dropped to 103.1, but by the end of risks written while "loss ratio"
of the year, Dec. 30, 1942, it had is the percentage of total losses
fully recovered and moved up to paid to total premiums written.
Index
reaching 118.7 by Aug. 4,
1943, which was three days before
dismissal of the suit, and on Aug.
more
$100 of risk has de¬
1.07
1942
Poor's
and
-
280
1920-1929
observe that
Standard
of
A.
1910-1919
1941
seriously, to judge from the
L.
-
Average
1900-1909
the market did not take the suit
very
Francisco
San
»
279
follows:
1937
other
final, remains to be seen.
It is of interest to
as
A.
Period—
of
will accept the decision
or
WIRES
Seattle
1935
Department
Justice will try some
St., Los Angeles
Chicago
1936
risen,
The excitement incident to Mussolini's downfall has spent
in
clined
Anti-trust
the
<•
mium rate per
defendents,
of the proceed¬
Whether
ment.
solicited.
CALIFORNIA
TELETYPE L.
The
course
OF
TRIVATE
York
New
suit
insurance
of
(P. C. T.)
m.
Orders
Butler-Huff & Co.
unequivocally and unambiguously
that
to 5 p.
m.
210 West 7th
"conspiracy to fix and
maintain arbitrary and non-com¬
petitive rates on fire insurance."
dismissal
a.
Service
Brokers.
&
invited.
Compared
-
Booklet
and
Dealers
Inquiries
by
the
to
Quoted
-
Reviewed
Bulletin
Trading daily 7
and
Judge Underwood declared that
the/Supreme Court had, for a
period of seventy-five years "held
Sold
-
Special
conducive
stocks.
C.
SUDAN
Bought
Analyzed
monopolistic prac¬
"
to
boycott.
Among
other
things, the
de¬
fenders were charged with vio¬
tices
&
BANK STOCKS
be recollected
Weekly
Eaton has become associated with
thereto
the
INSURANCE
of its officers and 198 capital stock
fire insurance companies.
It will
action
Chronicle)
the fortunes and pros¬
stockholders, and
their
and
the^—
against
as
AGENCY
William
Branches
EGYPT
now
Witter
Company, 510 South Spring Street.
£3,000,000
....
of
should therefore be of interest to dealers in insurance stocks.
CALIF.—
Dean Witter
ANGELES,
pects
euver
Chronicle)
Osgood is
with
F. Flower is with G. Brashears &
FULLY
Com¬
Montgomery Street.
to
ery
Cairo
Register No.
staff
has
Baker & Co.
of EGYPT
Commercial
Wells
Co., 453 South Spring Street.
NATIONAL BANK
Office
ANGELES, CALIF.—Wal¬
M.
F.
Chronicle)
ated
LOS
Head
The Financial
FRANCISCO,
.
this week to discuss' briefly a diversity of matters
to the fire and casualty insurance business, and which
have significant bearing, in varying
degrees, on
of
Franklin
Wulff & Co.
Executorships
con¬
300 Montgomery Street.
SAN
>
Bankamerica
N. Y.
1-1248-49
propose
ings, had pointed out that insur¬
•'.;4
ance
always had been regulated
(Special to The Financial Chronicle)
.j[ :' by the various State Governments
-SAN
FRANCISCO, CALIF.-*- and never by the Federal Govern¬
erick S. Weaver have become
Teletype—NY
Insurance Stocks
—
";i-
«.
Kenya
CALIF—V.
B.
H.—Charles
Sabine, 3rd, has become
We
that pertain
In
(Special to The Financial Chronicle)
Building.
Exchange
(L. A. Gibbs, Manager Trading Department)
4-2S2S
This Week
-
General
{Special to The Financial Chronicle)
NATIONAL BANK
CALIF. — LaMar
rejoined Quincy
has
Bell
lation of the Sherman Anti-Trust
Cass Associates, First Trust Build¬
SAN
Bankers
647
'
■
Stock
Bank and Insurance Slocks
Government's
DETROIT, MICH.—Richard E.
Sloan, formerly with Hornblower
& Weeks, is now with Paine, Web¬
Berkeley Square, W. l-;{:
Agency arrangements
Co.,
(Special to The Financial Chronicle)
these
OFFICES:
Threadneedle
29
&
Chronicle)
countries.
LONDON
Wyeth
Spring Street. Mr. Cahoone
was formerly with District Bond
Company and in the past was
investors,
»v
•
with
South
J; E. Neubauer & Co.
complete
most
service
travellers
and
ciated
asso¬
son
D. Marshall has joined the
City Bank Building.
Mr. Taylor staff of the Pacific
Company of
was
previously connected with California, 623 South
Hope Street.
over
870 branches in all States of Australia, In
and
has
Taylor
with
The Bank of New South Wales Is the oldest
largest bank In Australasia.
ANGELES, CALIF.—Wil¬
,
A.
Dlgby
York
Telephone: BArclay 7-3500
NEW YORK 5
Telephone
New
130 BROADWAY, NEW YORK 5,
By E. A. VAN DEUSEN
.
George Street, SYDNEY
Members
Exchange
leading exchanges
San
{Special to The Financial Chronicle)
CHICAGO, ILL. —Jules Bluth
LOS ANGELES, CALIF.—Geo.
has joined the staff of Straus Se¬
is now
with
Nelson
curities Co., 135 South La*Salle E. Mellon
Douglass & Co., 510 South Spring
Street.
Street.
Mr. Mellon was formerly
with Hill, Richards & Co.
(Special to The Financial Chronicle)
£23,710,000
-
in
with Dean Witter & Co.
6,150,000
ALFRED
Co.,
&
£8,780,000
Reserve
and
Woolf
(Special to The Financial
Capital
Fund
Aggregate' Assets
Sept., 1941
Oliver
S.
associated
—
become
Stokes,
Co.
liam M. Cahoone has become
1817)
Reserve
.
ILL.
Chronicle)
105 South La Salle Street.
NEW SOUTH WALES
SIR
to The Financial
CHICAGO,
Stanley
has
BANK OF
&
Laird, Bissell & Meeds
Stock
(Special to The Financial Chronicle)
LOS
Australia and New Zealand
Bourne
York
Francisco.
a
number of years.
(Special
con¬
Miss Bailey was previous¬
ly with Schwabacher & Co. and
Edgerton,
New
other
WALL ST.
1
Street.
Boulevard.
Mr.
Egan
previously with Hemphill,
Noyes & Co. and in the past was
was
Associated Banks;
Paid-Up
Members
nected with Merrill Lynch, Pierce,
Fenner & Beane, 523 West Sixth
with Dan¬
Jackson
(ESTABLISHED
A.
AtlklG^
ginia II. Bailey has become
CHICAGO, ILL.—John P. Egan
ASSETS
Bank,
William
and
(Special to The Financial Chronicle)
Deacon's
Trust Co.
(Special to The Financial Chronicle)
64 New Bond Street, W. /
Request
on
Mrs. Glendon
with
Lower & Co.
cashier for Arthur
now
formerly
was
M.
Bulletin
New York
joined the
Perry & Co., 31 Milk Street.
Burlington Gardens, W. I
Williams
Glcndon
West Sixth Street.
Smithfield, E. C. /
TOTAL
ANGELES, CALIF.—Mrs.
M.
Trust Co.
First Boston Corp.
Chronicle)
staff of Conrad, Bruce
Stone & Co., 25 Broad Street.
3
The Financial
to
Manufacturers
New York
Enterprise
7008
THE
Thursday, August 19, 1943
CHRONICLE
COMMERCIAL & FINANCIAL
704
in
From what I have seen
Tomorrow's Markets
SEC
under
for
decline,
the
on
selling
rules, short
can
past month or so I don't
be
accomplished in
market-minded people only
need worry too much about advancing markets/ But on
the business as usual theme. the small advance from last
the
think
Walter Whyte
Attractive New York
City Hotel Bonds
Complete reports sent upon
bear any fruit
better than
dead
center
with dullness usual. Of course such plans
the
result.
Entry
of new will not make Page One across
They are too
short sellers in past few days the country:
points to more strength than complicated for not only the
average reader to understand
weakness.
request
& Co.
Seligman, Lubetkin
Incorporated
Members
in
now
WALTER WHYTE
By
About the
Real Estate Securities
have
closed at three.
green
These
opened at ten and
It is obvious
the market having com¬
!.
'Vjf i'
■*
■
It
paradoxical to say
seems
sellers came in
that because
went
market
the
*
■'*
;
to go
the
expected
down with short selling
do that at all.
On the
street with contrary
all
But
up.
normally would be
i
the market will don't
lights
/
*
*
'*
.
that
mean
one-way
a
*.'•
'
not
does
now: on
the market
Security Specialists Important
Advice Of Real Estate
i
news¬ the market is a mass of con¬
tradictions and stocks which
average
•>'•*.•/ I
i
This
from
side.
reporter to write about.
paper
only thing that
can
be said of last week's
market action is that each day
the
for
;
nibbling on the short
began
it will be business
but
HAnover 2-2100
York 4
Broad Street, New
41
Association
York Security Dealers
New
who seldom if ever go
cussion stage
pendulum
Market
lotters
short
week's lows, the odd
plans now in the dis¬
For if
Says—
specialist will
to
any
tell you that stocks tend
move
in
the
direction
way.
of
things are never so
of property that
published in the news¬ pleted its pendulum swing is simple. But it does mean that heavy offerings and not away
from them.
Your old time
papers.
'■
now
back in dead center. the theory of a bear market
This article should be read by every investor and security firm
operator was well
which was espoused so widely market
What buying there is doesn't
interested in real estate securities, as we feel it is a sort of "hand¬
aware
of this characteristic.
distinguish itself by either a few weeks ago will not pay
writing on the wall, as to the future of real estate properties.
Naturally inci¬ When he was interested in
its quality or quantity but off so well.
Briefly, the article stated that a3>
buildings can be purchased at ap¬
syndicate had purchased a large
neither does the selling. It is dents can occur; in a war getting a stock to move up he
proximately the same prices as
parcel of land comprising the ma¬
I
where political upheavals are first put out short lines.
their older neighbors. As an ex¬ also apparent that the market
Last week an
in
jority of the square
of New York was
block bound¬
Broadway, Seventh Ave¬
nue, 38th and 39th Streets,: New
York
City.
The buyers stated
ed
by
4that after the war they intend to
improve the property with two
structures that will have a rent¬
able area of about 1,000,000 square
feet of space.
The article fur¬
ther stated (and this is the portion
lhat we believe is so important)
that
the
will be
building
new
and
air-conditioned
completely
private car park¬
ing space in the basement and
also that the tenants will have
will
an
contain
a
for
loading platform
interior
the sale of a piece
article concerning
Garment Section
the
the Harri- is waiting for
ample, let us compare
Building
at 39
Broadway
man
at 61 Broadway.
with the property
something to
happen. What this is likely to
be is anybody's guess.
Mine
rule, such incidents are realize that market operators
accepted thing.
What under SEC are a thing of the
the
the
past, well, almost a thing of
the past; I'm not so simple to
believe that all market opera¬
form these incidents will take
constructed
is unknown to the great ma¬
prior to the is international developerection of the Harriman Build¬ ments
as
jority of people, in and out of
applicable to the
the market. Yet anybody with
ing, which was completed in 1927.
Broadway
61
in
1913,
61
14
was
years
is
Broadway
building built on a
a
33-story post war
that the
naive enough to maneuverings of our State
such plans will be Department tend to have the
plot of 22,180
I'm not
feet while the Harriman
Building is a 36-story building think that
built on a plot of 17,150 square
published in their entirety or
i'eet.
•;
V'; /•■//
even in a fragmentary form.
61
Broadway has a rentable
But there are indications as
area of 451,000 square feet, while
square
the Harriman
Building has 330,000
to
what
an
us
eye can see
incidents fall in favor
been limited.
In
of the
*
knows
*
When I wrote last week's
square feet.
called 4'dope" stories written
Both properties have approxi¬
column the market had just
spots in the
mately the same percentage of by newspaper correspondents
Garment Center today is the traf¬
earnings.
We are told that 61 who are fairly close to their completed a major reaction.
fic congestion and the police rules
The consensus of opinion was
Broadway
is currently earning sources of information.
on
extended parking, so it can
about 3.5% on its bond issue and
that the reaction would go
readily be seen what an advantage
+he Harriman Building 3.6%.
further
before any worth¬
an interior loading platform would
Both bond isshes are selling at
be to
attract tenants..
And, of
while recovery would be seen.
of
the
sore
either
course,
an
air-conditioned build¬
of
ing would also be the means
drawing tenants away from other
buildings.
• y
:
:
.
>
significance of the article,
seems to us, is that in consider¬
The
it
ing the
purchase of realty
securi¬
taken
ties, great care must now be
to consider the obsolescence
of the
property involved, not only from
the standpoint of the expense of
'
same
price,
mately 23%.
The bond issue on
is
approxi¬
;
61 Broadway
$7,922,000 against $4,595,000 on
Building.
Both bond issues are currently
the Harriman
The plan sug¬
being reorganized.
gested for 61 Broadway is to give
bondholders, for each $1,000
the
bond
now
held, a $500 first
mort¬
Loan Associations
that
have
adequate mortgage bonds on 61 Broadway
sinking funds to retire the funded will be $3,961,000, against $4,595,debt in proportion with the age¬ 000 on the Harriman Building.
ing of the property. Another safe¬ But your cost of the new 61
guard would be to choose the Broadway bonds will be 46% be¬
securities
more
often
wise
modern
you
securities
Very
market-
buildings.
will find that
of
the
cause
newer half,
of your
bond being cut in
compared
to
23%
on
the
sold
5%
1943
in
more
or
bonds equal to
war
of their own assets.
Harriman Building
where the par
-
I felt that
then current action,
further setback instead of
being a signal for more de¬
cline would be a place to buy
any
certain stocks.
acted better than the
market
indicated that their
and
actions
were
didn't reckon
bond remains the same.
in short
These prices place a value of
$1,822,060 on the entire mortgage selling
of 61 Broadway and a value of
cf your
on
I
True,
not
this
come
about
be
a
a
in
Established
bad idea.
*
*
*
More next
article
views
Whyte
expressed
in
.Y.TitleJtge.
York
^tock
coincide
with
They
are
those
author only.]
New
York
Curb
Exchange
Cotton
Place, New York 5, N.
Prudence Collaterals sa.[7
Orleans
New
Inc.
Exchange,
Board
of
99
WALL
STREET
NEW YORK 5, N.
Cotton Exchange
other Exchanges
And
SUGAR
Y. Cotton
N.
Exchange Bldg.
NEW YORK 4,
SIEGEL &
39 Broadway, N. Y. 6
Bell
Tel:
DIgby 4-4950
Bell Teletype NY 1-953
System
Y.
Trade
other
TITLE CO. CERTIFICATES & MTGS.
Y.
;•
Exchange
York
New
Exports—Imports—Futures
N. Y.
—MEMBERS—
40 Exchange
of the
presented as
Exchange
F1
Commodity
New York Curb Exchange
this
do not necessarily at any
LAMBORN & CO.
New
Chicago
York Stock Exchange
j
Thursday. /
—Walter
fThe
those of the
1856
Members
New
get
buy
though raising them*
point or so wouldn't
Chronicle.
C2
SHASKAN & CO.
orders
time
BK
all
to
of the
H. Hentz & Co.
Active Markets
and
managed
fractions
within
The rest of
same.
the increase
Build¬
(Continued on page 705)
SECURITIES
stocks
t.he
re¬
But
over.
selling.
did
remains the
areas but none got into them.
list of I suggest you keep your buy
in my opinion
which
stocks
The stop at 31,
about 34.
now
With that in
mind I recommended a
ing.
REAL ESTATE
fall asleep. There
possibility that a
reaction may take place
Sates
Up
$1,056,850 on the Harriman
TRADING SPECIALISTS IN
rally about 2 to 5 points
jority of stocks it did look as before the former takes ef¬
But on such a reaction
War Bond
if lower prices would be seen fect.
Yet stocks are a buy, hot a sale. U
With 16 more savings, building in the immediate future.
and loan associations on the cur¬
there were certain small signs
rent national honor roll for war
Last week I recommended
which pointed if not to higher
bond sales than it had this time
prices then to a cessation of a number of stocks. So far
last year, the
Illinois-Wisconsin the decline.
only
Borg-Warner, / to
be
district of those institutions is pre¬
bought at 32 or better with a
paring to intensify efforts to sell
Being well aware of the stop at 31, came into the list.
war bonds in the Third War Loan
Borgmajority opinion on the fu¬ During the week
drive
beyond
any
previous
ture of the market plus the Warner sold off to 31%. It is
6%, income bond with stock
representing an equal share in ap¬
repairs
which are necessarily
proximately 95% of the owner¬
higher an an old building, but
ship of the property, while the
also the problem of the cost of
modernizing the property to avoid plan for Harriman Building al¬
the
risk of
ultra-modern new ready approved, gives the bond¬ achievement. This is reported by
holders for each $1,000 bond now
buildings taking tenants away.
the Federal Home Loan Bank of
held a new $1,000 first mortgage
Most important, however, is the
4V2%, income bond (3% cumula¬ Chicago which serves that Dis¬
fact that cognizance must be taken
tive, 1%% non-cumulative) and trict.
of the problem that buildings do
stock representing an equal share
A. R. Gardner, President of the
get older and the past practice of
m
100% of the ownership of the
considering depreciation just a
Bank, says that the 96 associations
"bookkeeping item"
must be property.
in those two states cited in the
After
reorganization of both
changed.
July Federal Loan Bank Review
A
safeguard against this sit¬ properties, in accordance with the
in Washington have
uation would be the selection of above plans, the outstanding first published
gage,
or
of the ma¬ minor
the taction
From
interest which
much about market
will just
is a small
ill.-Wis. Savings And
the
about
as
a new
in the mar¬
technique as I know about
military strategy, I think you
can expect one of two things
to occur.
The market will
their trucks.
One
now
short
a
/
,;'///■
with
case
any
status short interest
ket,
%;■■■■.
❖
: !
/
*
quo.
they will be in so
instead that they have
say
the
of
intensification
Let
disappeared.
tions have
world.
half
-
CO.
DIgby 4-2370
Teletype 1-1942
.
1
:
'
CHICAGO
,
'
DETROIT
PITTSBURGH
,
GENEVA,
SWITZERLAND
DIgby 4-2727
THE COMMERCIAL & FINANCIAL CHRONICLE
tinuous
Municipal News & Notes
Frank M.
in his current "News Letter" that
tion,
there
wealth
are
developments
no
con¬
"If you
'
the
City
issue
Comptroller of
were
$3,000,000
Bonds
now
could
Buffalo and
of
Spring when the
required, what would
City.
our
to
will be
do?
you
It would be valuable
have the opinion of a dozen
of the experienced readers
or so
of Buffalo News Letter and the
question
is
put
the
in those
the
sumed in
rising
municipal
past) week
a
very
tendency
several
months
pending in Congress.
sectional
.
again
until
bonds
moved
slightly
of
10
1.44%.
to
of
a
material
municipal bonds in
anticipation of subscribing to
U. S. Government bonds in the
-
.•
?
Third
War
Loan
Drive
next
all
of these
have, been
so
far,
municipals
announced
there
have
Ohio bonds.
no
fact,ithe scarcity of hew
in the Ohio market is
it
as
for
been
has
been
In
names
as
for
been
limited
Chicago Board of Educa¬
department
1935.
Seen
Board
that it is determined to pay
annual
interest - payments
-
of
in
the
the
industrial
country,
where
municipal
and
county govern¬
learned in the depression
to
years
depend
^Washington
for
too
the
much
on
solution
of
their
problems. *. But the weak¬
ening of the local government
structure
has
proportions
states
as
chase
assumed
in
the
northwestern
result of federal pur¬
large areas of land for
conservation, military and rec¬
reational purposes.
funding
D.
An-
gell of Oregon reports that the
Federal Government now owns
70.9% of the land in Idahqf,
61.5% of the land in Montana,
59% of the land in Oregon and
45.9% of the land in Washing¬
ton.
In
gon, he
counties of
some
says
privately
to 17%.
Ore¬
the amount of land
owned
has
been
cut
means, of course, is
millions of acres
of
real
estate, much of it formerly lucra¬
tive, have been removed from the
local
tax
county
duplicates, leaving the
governments
without
the
incomes needed to keep them
op¬
erating successfully.
In such
a
situation, they turn more and
fnore to the Federal Government
for financial assistance and this
in
turn
impairs
make their
own
fields of public
It Is
first
series,
the
According to Judge Jarecki, the
bond issue's proceeds were used to
pay off tax anticipation warrants
true, of
their
ability
to
decisions in many
policy.
course,
that many
of the projects involved
in the
important
could
the
proceeds
Prospectus covering all classes
of stock on request
of
taxes
in
,
Lord, Abbett & Co.
INCORPORATED
63 Wall Street, New York
Russian
CHICAGO
victory, but.,it is
debatable if the Russia of today is
in the position to exploit her vic¬
tories to the utmost. Her logistics
problems are as complex as ours.
Nor
can
be
we
is
such
to
omen
an
take?
Excluding Italy,
Germany today
perhaps
1,500,000 square
of conquered
or
satellite
holds
miles
Sales Literature And Related Items
The
natural
in
with
do
statistics
of
for
illuminating
an
sponsor
time again that a nation can sur¬
vive long beyond the theoretical
breaking point. Moreover, and let
us
not
put this casually aside;
there is a sinister day of reckon¬
ing for German war criminals at
the
hands
of
y
long
tortured
peoples.
Surely
such
persons,
knowing they can find no refuge
anywhere on earth, are not to be
swerved
from
their
purpose
by
the rumbling of cannon almost a
thousand miles away.
;,
*
*
*
Russians
will
drive
to
the gates "of Kiev this
winter; wife
believe that Allied guns will boom
in the Po
valley;
we believe that
the successful invasion of Norway
is
strong
a
probability,
and
we
It
wares.
standable
cluded.
pages,
worksheet
similar
attempt
A
Prentice-Hall
resulted
in
ness-getting
hand
sell
tool
the
dealer's
obligating him to
specific securities.
(We
almost hear
can
in
without
any
trust
some
sponsors
their
turning
over
initial
distribution
limited to active
was
dealers in
widespread and grow¬
V
with
a
minimum
generals
NOT
are
human lives.
---
squandering
.v.^'/y
/
-
v *
*
Our field
*
of
the
finest
literature
we've
looking
has
seen
been coming from the Lord, Ab¬
piece,
Busy
"A
One
Memorandum
Man,"
is
folds
into
be defended
whether by
by Italians—than the
peninsular of Malaya could be de¬
more
fended.
—
or
/'second
front"
comparable
with
We have
a desperate task ahead of
Europe, and when that is
in
us
ended
*
Consider
aration
*
the
that
*
of
precede
prep¬
such
undertaking. ' A single modern
division, they tell us, consumes
from 600 to 800 tons of supplies
and ammunition a day.
Multiply
that
hundred
a
fold
for
day-to-
day consumption by an adequate¬
ly sized army in northern Italy,
and
by
moderate
tion
10,000-fold
six
take
will
to
assure
a
three-month accumula¬
not too
to
years
do
(Continued from page 704)
While
we
both issues
convinced
are
are
intrinsically worth
the
than
current
indicate,
it
appears
as
a
one
market
would
modern
more
Building
able.
that
the
seem
Harriman
more
desir¬
This article is not intended
suggestion of a switch out of
security
merely as
portance
tion of
into
an
the
of" thorough
all
other, but
example of the im¬
investiga¬
phases of the
proper¬
ties securing real estate securities.
Such, investigations
can
readily
impressive stock
pile that certainly must never fall
be
below that minimum level.
specialize in real estate securities
—
a
When
have done that, add the tre¬
requirements of a vast
air force
(a small squadron of
which can use upwards of 10,000
gallons of gasoline in a single
you
mendous
flight),
the
problems
of
con¬
lot
of
W.
*
little" sales folder with
a
punch,
&
Co.
piece,
"To
Those Who Are Concerned."
might define it
a
recommend the
we
Smith
as
an
One
illustrated
the world
personal
and
man
touch
of
an
has
or
the
informal
.
,
Fifty
paid
$1.00 a day for 10 hours of hard
work.
The dollar prices of
most goods and services have ad¬
years'ago
.
moves
on.
labor
common
.
.
.
was
.
vanced in about this
same
propor¬
tion in the past
half-century.
."
"... To say that progress and
depreciated purchasing power of
money may go hand-in-hand
is
not to condone uncontrolled price
advances.
The one way to pro¬
.
.
...
memorandum.
dealer's
A place for the
imprint
is provided.
vide
for
increased
cost
of
living
is to build up capital, which is the
basis for income.
It makes no
Equally attractive are the new
fold-out pieces presenting Union
Bond Fund "C"—Union Common
the
Stock Fund "A"—and Union Com¬
war
Stock Fund "B."
...
practical difference to us whether
yard-stick by which the post¬
mon
Each folder
dollar will be measured is to
be
Real Estate Securities
that the
months
must
For
gold, silver, a commodity form¬
lists the portfolio of the respective ula,
international horse-trading,
THAT job.
Let's try to do it in
Fund and emphasizes the reasons or a plain, old-fashioned threethree!—Louis James Burns, J. F.
"Why investing through Union foot rule. -One plain, simple fact
Reilly & Co.
Trusteed Funds, Inc. is increasing¬ remains—it is going to take more
dollars of income to support a
ly popular."
A
more
elaborate
folder i" on given standard of living."
it
would
/''//v/''
attention
our
The Navy tells
the Far East.
to
World
'■
must turn
we
more
:
professional
It is
HAVE JUST BEGUN TO FIGHT!
the western battle line of the First
War.
has caused a
slowing up in war pro¬
Anything further along
those lines could jeopardize the
gains we have already won. WE
But, when the valley of
the Po is reached, we may have a
different story.
We may have a
a
aimed at the busy executive
serious
a
ingenious
an
which
to
handy pocket-size shape.
us
Italy, to our way of thinking, is
definitely doomed.
The greater
part of that peninsular can no
*
as
Some
sales
ing conviction that hostilities are
duction.
Vargas girl at the
a
wheel.)
.
hearing their endj
result
he
YORK
Group Securities, Inc., discussion
leading to a conclusion.
although
copies
are
available Here are
samples of the plain talk
simply by r writing the sponsor, it contains. "
After all, higher
Distributors Group, Inc., 63 Wall
prices for goods and services are
St., New York.
'-fev- part of the normal course of events
was
of
would
.
a
Incorporated
63 WALL STREET—NEW
A.
$900,000 due in 1954 it
of effort and casualties.
in
at this.)
graves
brochure
mum
GROUP,
of the early
Already
(Continued from page 687)
of planes.
The object,
apparently, is to achieve a maxi¬
by
48-
Secondly, it places
service-rendering busi¬
valuable
Request
DISTRIBUTORS
page booklet.
a
on
in¬
a
1955
deadliest
Prospectus
jfcar
the first place, it succeeds
reducing the most complicated
history to four under¬
500,000 of 4%s due in
Myth Of An Early Peace
A Class of Group Securities. Inc.
tax law in
bett organization recently.
said.
is
In
in
direction, but we still think the
road wil be long snd rough.
Any
other reasoning seems dangerous.
and
Shares
mention of the
no
Incidently,
Yes, we confidently be¬
the
Low Priced
the
fective.
of the folder
lieve
Income
such should prove highly ef¬
as
//
thinking.
!
goodwill builder and
a
wishful
It is folly to indulge in
1943
his
or
strictly
cata¬
logue of these resources. Beyond
that, history has proved time and
handsome
a
dealer's imprint,
folder makes
but
reference to The Statesman's Year
Book
is
Your
the
carry
moment's
a
week
Estimate
We will not trouble
tiresome
recommend
this
Taxes," published by Distribu¬
tors Group, Inc.
Designed to
the
resources
tops
four-page folder, "To Help You
000,000 persons—this in addition
She holds
company
for visual appeal and forcefulness.
Most unusual piece to come l<$—
much of it highly in¬
dustrialized, peopled by over 200,her homeland.
dog days
are causing hardly a ripple in the
output of invest¬
sales literature.
Not only has there been no ap¬
preciable let-down in volume, but appearance and content are
ment
territory,
to
LOS ANGELES
Investment Trusts
supremely confi¬
dent that Germany will surrender
at the first sign of defeat.
What
form
JERSEY CITY
Allied
1929, and these war¬ look for a diversion intheBalkans.
be
redeemed; only These will be steps in the right
an
What this
that
Education's
bonds,
Germans
Congressman Homer
-
the
on
refunding
bonds, second series. On Sept. 1,
interest amounting to $130,625 be¬
came due and payable on the re¬
alarming
of
a
payable
American liberties is
our
enough
ments
semi¬
due
Aug, 1 and Sept. 1, respectively
according to report.*
On Aug. 1, $21,3-75 in interest
of
,
The ruling affected
$500,000 of bonds in a total of $5,-
fight for survival of local
self-government as the founda¬
sections
of
those years.
The
of
ap¬
Education
made it clear that it regards the
issue as "legal and valid," and
from
Land Acquisitions
tough
an
out.
Threatened By Federal
tion
take
an¬
bond issue floated in
a
The
of 1928 and
Government
has
peal from the ruling by County
Judge Edmund K. Jarecki hold¬
rants
Local
day of
Bond Issue Held Invalid
ing illegal
*
and will hasten the
can
those lands.
some/
during
*
that
we
acute
the past week.
true
successes
you
legal
UNION FUND SPECIAL
\
sult in cataclysmic German de¬
feat, or that Germany will col¬
It
lapse of internal exhaustion.
is
STOCK FUND "A"
UNION COMMON STOCK FUND "B"
months, perhaps not
on
Chicago School
board's legal department pointed
time. Under such circumstances,
business
in
such
names
has
naturally
of the
issue
that,
tremendous
The
UNION PREFERRED STOCK FUND
UNION COMMON
reasoning to main¬
the one hand, a series
of signal Russian victories will re¬
tain
Cleveland, Ohio "Plain Dealer."
Board
in
now
f-
recent
that
that
;
a
became due and
f practically
j
in
month, it is quite interesting to
note, • the bond house reports,
sale
'
Foregoing appeared in editorial
nounced that it will
their intention to sell
would
its destruction
mean
to 1.25%, and the in¬
Although during the past fewy
amount
The loss of
tion's
weeks several accounts through¬
out the country have announced
the
all sections.
columns
The index
dex of 10 lower grade *bonds from
1.64% to 1.63%.
for
section
any
grade bonds declined
high
from 1.26%
■j
in
eventually
in
three
some
viewpoint,
national problem.
freedom
slight degree, its
experienced for
higher, and during the week the
yield on these 20 bonds declined
from 1.45%
a
re¬
J. A. White & Co.,
Cincinnati, reported Aug. 18.
;
\v The firm's index of prices for
Ohio
are
They
of local government is
survival
market
weeks, ago,
20
solvent.
generally attached to Federal
a
during
of land in order to
government
ought not to be considered from
Ohio Bond Prices
Resume Upward Trend
Ohio
adopt
Several bills to that end
;
The
to
taxpayer
a
grants to state and local agencies.
now
:
have
where it has taken
areas
local
UNION BOND FUND "B"
UNION BOND FUND "C"
It is unwise
Such taxes, of qpurse, would have
to be paid with no such strings as
ness.
<
will
areas
vast
ever
keep
>>
1
to make them.
policy of becoming
serious-
in all
solved in six
*
However„as Congressman Angell
says, it may be that the Federal
are
conquered territories.
All of
these things sum up to a herculean
task
that
cannot
possibly
be
in two years.
appear
UNION BOND FUND "A"
'
/
,
in
is not quite as great as
Government
money
of
near-by com¬
that the loss of
lines
land ownership percentages
revenue
a
next
forms
new
the
so
Refunding
This is the question now before
,
for
until
of
wait
or
create
munities,
cerning
the
much-talked-about
plan of blanket refunding by the
city and then passes the follow¬
ing query:
*
irrigation and reclama¬
power,
shifting of supplies as
change, and, finally,
the
necessity of -feeding
from
thirty to forty million civilians
battle
Federal land purchases, such as
Davis, Comptroller of
Buffalo, N. Y., states
the City of
705
are
made,
providing
contacted.
maintain
files
These
generally
dealers.
who
specialists
containing
nent facts of this
not
firms
perti¬
type of security
available to
most
Union Bond Fund "C" carries the
intriguing title, "Buying Bonds
@ 60c on the $1." Also listing the
portfolio it stresses by text and
.
illustration "four tested rules for
better results."
They are (1) Di¬
(2) Concentration,
(3)
Value-Selection
and
(4)
Weighting
by
Worth.
Further
*
*
*
The two latest
industry studies
to
be
published in the series,
"Post-War
Backlogs and Busi-
(Continued
on
page
706)
versification,
presentation of UBC is made by
use
of the question-and-answer
method.
*
*
*
Not to be outdone in the mat¬
ter
of attractive presentation,
Hugh W. Long & Co. has pub¬
lished
a
new
folder
on
the
Automobile Series of New York
Stocks that is
positively
guar¬
anteed
to
water.
The "car of the future"
pictured
on
make
your
the front
mouth
cover
bodies the promise of
an
whelming
for
demand
em¬
over¬
the
peace-time products of this in¬
dustry.
we
(The only improvement
could think
of for this
job
Prospectus
from
may
authorized
be obtained
dealers, or
The PARKER CORPORATION
ONE
COURT
ST.,
BOSTON
THE COMMERCIAL
706
Impede Accumulation Of Reserves
Against Post-War Needs Executives Report
of
of
of
taxes
<S>-
production.
1937
1938
depends their capacity to provide
in the
(Continued from Page 705)
the actual
Most
the
contingency reserves.
If
lowed to build
reserves
with
period
war
reconversion
is not al¬
during the
which
expenses
businesses
small
...
business
private
meet
"many
to
fail
will
and
larger businesses will find
it
exceedingly difficult to hold
their labor organizations together
during the critical period succeed¬
many
cessation of hostilities,"
ing the
'
the Board quotes one
'
saying.
"The
as
as
security of the corporation
economic
an
executive
'
comprehensive
securities
for
companies in these two groups.
A
new
folder
outlining
the
functions of the trustee under the
trust,
agreements
tional
Securities
lists
dif¬
23
responsibilities
of
the
in safeguarding the prop¬
trustee
issued
leaflet
on
Corp. has
' attractive little
Research
&
Securities
an
Low-Priced Bonds
its
estimated
is
Income
Series.
of the
approximately 6.8%
price,
last
significance are:
at
cur¬
rent offering
"■■■"■
,'■*
The
to dominate the
policies and attitudes of business
management. Accordingly, profits
appear
"burning
The
year.
far
so
are
ratio,"
losses
.
treated
are
of other
low.
in the
as
case
affiliated
of companies may elect to
>
corporations;
an
Corporation group
taxes are not affected by the 1943 file on a consolidated basis; a net
"Pay-As-You-Go" Tax Bill, and operating / loss may be • carried
Federal
remain
Taxes:
prescribed in the 1942
as
preceding taxable
back to the two
which is of benefit to those
corporation tax is 24%, and the companies that sustained heavy
marine losses last year.
While
surtax
16%, so
the combined
normal and surtax for most com¬ tax rates in the 1942 bill are high,
panies is 40%.
The excess prof¬ the insurance business is not hit
its tax is 90% with a post-war re¬ by it as hard as are most other in
Federal
fund
Tax
of
The
Law.
normal
However, the law
10%.
places a ceiling of 80% on earn¬
combined normal,
and excess profits tax.
the
for
ings,
surtax
companies are
and their in¬
base for excess
insurance
Most
well
capitalized,
vested
capital
profits tax purposes includes also
50%
of the mean of unearned
premium reserves as borrowed in¬
vested
capital.
The
tax base
little
its
re-issued
and
vised
years,
One of the most
New Business:
aviation
much
is:
questions
of
intriguing
insurance
the
written
in
Nobody
knows.
post-war
Best's
How
will be
years?
"Insur¬
News" recently published a
ance
tabulation showing the
such business from
which
from
and
growth of
1937 to 1941,
the
following
——
-A
1941
1937
.
1941
Custodian Funds.
figure
in
the
booklet
Keystone
financial
sible
shape.
It will
struggle with present and
a
No
sible future taxes.
be
pos¬
more
ex¬
our money.'
specific example of post-war
dangers is that of liquidating in¬
ventories-in-process and accounts
least, it would help keep their lit¬
erature up-to-date.
/i-f* ./• *
It's
pansion with
"A
receivable
the
at
termination
of
hostilities.
Borrowing to provide
additional working capital
is a
normal procedure for many cor¬
porations when liquidation of in¬
or
academic
purely
which
':/■/
■
first,
came
—
like
chicken
the
the egg—but the fact remains
that Keystone and National Se¬
curities
Each Month
like
Check
"A
on
(or Every Month)
Throughout
Looks
identical
almost
have
literature
sales
The Year."
(or Of)
smart
natural for
a
ventories and accounts receivable
salesmen—use
is
have "Two Checks Each Month
expected to provide the funds
which to
with
repay
loans.
The
Throughout
Year!"
The
present
*
funds
both
does that
sound
strong
the
(Or
much
Deal?)
danger arises from > the
possibility that post-war
liquidation of labor-and-ma-
terials-in-process and accounts
ceivable
grave
"Since
about
a
year
are
consummated
not
due
until
levied
are
up¬
were
earned, reserves are set up by
corporations to meet the payments
when they become due.
Many
corporations
use
making current
represented by
are depending
future earnings or liquida¬
of
these
upon
are
the funds
reserves
and
to
pay
taxes.
Some corporations
a
hazardous
practice that they refuse to do it;
rather, they restrict current oper¬
ations if necessary,
to permit the
setting aside of c&sh to meet these
payments.
"Those
who
feel forced
to
use
currently
be¬
their
tax
cause
of the urgency of war pro¬
duction
to
reserves
are
quite apprehensive
as
the
tion
out
Steel
of
dangerous post-war situa¬
they are creating for them¬
flat-footedly
Group
for the
its
latest
choice
undervalued
stock
group.
Shares
an
Since
as
then
may
in.
Latest
chimed
voices
is
have
16-page
study by Standard & Poor's cov¬
ering the industry in general and
U. S. Steel in particular.
Copies
of this survey have been mailed
a
by D. G. to affiliated dealers.
*
tion of assets for cash with which
feel that this is such
#
*
Distributors
remember)
came
after the profits
they
*
like
Some time back in April (as we
re¬
losses.
taxes
which
on
be
cannot
without
New
too
and
"Let's
says
on
Look
*
%
At
Hare's, Ltd. in
The
a
Record"
new
fire insurance stocks.
folder
And
an
excellent record it is, indeed.
In
four examples comparing insur¬
ance
stocks with industrial stocks
and also with high grade bonds
during various significant periods
from
1917
up
performance
to the present, the
of
the
insurance
Details of the
♦
Types
Combined
$972,245
$1,478,871
4,027,469
5,440,992
$506,625
1,413,523
Liability Risks
840,959 ■ /,
752,565
1,168,139
327,180
..
622,692
1,375,257
/M/;
Treasury's war loan drive for'$15,000,000,000 which
under way on Sept. 9 were announced at
Aug. 15, and Allan Sproul, President of
New York has directed attention to the
goal and purpose of the drive, "every possible
by Secretary Morgenthau on
investor must be reached."
16 to direc-^
tors and executive officers of all cal
institutions in the New
Reserve District, Mr. Sproul
points out that Secretary Morgen¬
thau "has announced a goal of
superior in every case.
Expressed in percentage figures,
the
to
was
superiority ranged from 14.8%
172.6%.
selves."
year,
the
which began July 1,1943,
States
United
for
banking
It
also
was
time
that
mittees will consist of:
1. Series E
Savings Bonds.
F
2. Series
G
and
Savings
Bonds.
3.
Series C Savings Notes.
4.
2%%
6.
Bonds of 1964-69.
% % Certificates of Indebted-
ness.
.'iV"
be
,v
' I
•
1
..
*\
*
,
entire $15,000,000,000
The
sold
individual
to
investors,
corporations, insurance companies
apd other non-banking sources.
In his announcement of Aug. 15,
Secretary Morgenthau stated that
holders
of
the
3V4%
Treasury,
bonds of 1943-45,
called for
will
which have been
redemption October 15;
be
given an opportunity to
their called bonds for
securities shortly after the
other
of the
close
$15,000,000,000 Third
War Loan Drive.
Mr.
this/
made
and
Morgenthau
known in detailing terms
and the % %
con-*
and 2% bonds,
ditions of the
certificates of indebt¬
which will be sold during
edness
the drive.
As
to
the further
de¬
we
the
15
given
as
in
Washington "Post":
"Holders
the
of
3l/i% \ bonds;
other than the commercial banks,
will
be
given
changing
2V2%
will
the
option of
either
for
the
ex¬
2%
or
bonds. Commercial banks
be permitted to exchange.
their
holdings
In all
bonds.
be made
the
for
cases
2%
new
exchanges will
for par with inter¬
est adjustments to Oct. 15.
/
"The 2J/z% and 2% bonds, and
the certificates of indebtedness, as
par
#
well
series F and G U. S. War
as
series
and
Bonds
C
Treasury
Notes, will be available during the
third drive for subscription by in¬
dividuals,
insurance companies,
savings banks, savings and loan
associations, and all other classes
of subscribers except commercial
banks,
,
"Mr,
Morgenthau
had
earlier
Treasury must
sold
to nonbanking in¬
keeping with this ob¬
jective," the circulars governing
entirely
In
vestors.
at least $100,000,000,000
the 2% bonds and the certificates
prosecution of the war,
of indebtedness contain a request
plus an additional $6,000,000,000 to
to commercial banks not to pur¬
cover interest on the public debt
$15,000,000,000
to
be raised
chase
and that subscribers not
and other expenses of the Gov¬
through the sale of Government
trade in these securities until 10
securities to individuals, corpora¬ ernment. Only about $38,000,000,000
is presently
expected from days after the close of the drive;
tions, insurance companies, sav¬
or until after the books are closed
taxes.
In the absence of addi¬
ings banks and other investors
on an offering of the same or sim¬
tional tax revenue, the remainder
(excepting banks receiving de¬
ilar securities for the exclusive
mand deposits) in the Third War —$68,000,000,000 — must be bor¬
subscription of commercial banks.
Loan Drive."
Mr. Sproul notes rowed and $64,000,000,000 must be
"The 2 J/2% bonds may not be
borrowed publicly.
The methods
the
goal is $7,000,000,000 more
held by commercial banks before
than the goal for non-bank inves¬ used to borrow this huge sum are
—
" r. • / *
They Sept. 15, 1953.
tors in the Second War Loan Drive of the utmost importance.
"Life insurance companies may
will affect the volume of spending
last April and $2,500,000,000 more
subscribe during the drive to the
than was actually subscribed by power available for the purchase
2%% and 2% bonds and defer
consumer
goods, supplies of
non-bank investors in that drive. of
which are diminishing. They will payments until Nov. 1. Other sub¬
Mr. Sproul also states:
scriptions will be on a cash basis,
"The
banking
institutions
in have an important bearing upon
/"The 2*4% and 2% bonds and
this district contributed in large the effectiveness of price and ra¬
tioning controls and hence upon the certificates of indebtedness
measure to the success of previous
will be dated Sept. 15, 1943.
The
War Loan Drives.
Their aid will the cost of living. They well may
York
be of equal or
to
the
drive.
tomers
success
and
are
the
affect
their cus¬
and have their confidence
Bankers
know
purchase securities.
They
familiar with businesses which
accumulating idle funds.
By
reason
of their influence in and
are
intimate knowledge of
community
.
the
greater importance
They have first-hand knowledge
of individuals who are in a posi¬
tion to
provide
of the forthcoming
so
morale
affect the
of
the
people
conduct of the
war.
■
"The
first
essential
is
to
bor¬
muclLas possible from cur¬
rent income and as little as pos¬
row as
of
of
this first essential, and in order
to bring home to the people of the
country their responsibilities for
war financing methods which will
sible
through
the
bank
credit.
In
expansion
recognition
in a position to
aid in the maintenance of orderly
give effective support to the State
War Finance Committees which conditions on the home front, the
are in charge of the drive.
I know Third War Loan will be devoted
affairs, they
are
2V2%
bonds will mature. Dec. 15,
but are callable Dec. 15,
the 2% bonds will mature
15, 1953, but are callable
15, 1951; the certificates,
known as series E of 1944, will
mature Sept. 1, 1944."
1969,
1964;
Sept.
Sept.
An earlier reference to .the War
Loan Drive
of July
appeared in
our
/•,/*'
29, page 430.
issue
:,
:
Eugene Osborn With
Straus Securities Co.
.
the States of this district will re¬
exclusively to the raising of funds
from non-banking sources.
You
ceive the full
can
drive
in
Insurance Company offers attrac¬
tive possibilities according to an
The New York Stock Exchange
has announced that the proposed
sistance of
interesting memorandum and an¬
alysis prepared by Huff, Geyer &
Hecht, Inc., 67 Wall Street, New
York City. Copies of this memo¬
randum may be had upon request
from Huff, Geyer & Hecht, Inc.
transfer of the Exchange member¬
business, as extent of their ability, and by as^
well as of public interest.
The sisting them in the .selection of
most
appropriate
to
successful waging of the war re¬ securities
quires the effective mobilization their individual situations."
The current
situation
in
Home
ship of William H. Frank to Harry
Frank, Jr.r will be considered on
August 26th. Both are partners in
Smith, Frank &
City.
Co., New
York
leaders
the
that
N. Y. Stock
the
of
Exchange
Weekly Firm Changes
Ins. Stock Looks Good
"This is
cooperation and as¬
the banks.
a
•
*
matter of direct in¬
help greatly to assure the suc¬
of the drive by urging your
customers to subscribe to the full
cess
terest to' the banking
of
unprecedentedly large financial
During the present fis¬
resources.
Secretary Morgenthau in
catihg
r
will
announced that the loan would be
In his advices Aug.
.
stocks
Washington
the Federal Reserve Bank of
fact that to achieve the
Finance Com7
that
at
announced
Washington Aug.
All Other
Every Possible investor Mns! Be Reached
In Third War Loan Drive, Says Spreel
is to be brought
handled by the War
mittees of each State.
quote the following from
Associated Press accounts from/
Certainly these figures are very come after the cessation of hos¬
shows combined asset values of modest, and the increase over the tilities, we feel that aviation holds
the 10 funds at $61,291,000.
A five year period is moderate.
In in store great possibilities of new
are sought mainly as means to se¬
business for alertly managed stock
curity.
One respondent, for ex¬ more recent report as of August view, however, of the tremendous
fire and casualty insurance com¬
ample, states that 'Present taxes 1, just a month later, shows asset expansion in commercial and civil
that
inevitably
must panies.
in excess of $63,000,000. aviation
take so much of income that we values
will have to be very careful if But that's the way it's been with
we
are
to have enough to
get Keystone — they really should
through the next slump/
And adopt the method of the new tax
and
estimate
what
they'll
another says: 'Our job from here law
At
out is to get in the strongest pos¬ have at the end of the year.
Latest
raising the $15,000,000,000 will be
tails
figures have been taken;
Airlines
1937
fi¬
largest
exchange
dustries.
Scheduled
popular
Keystone
"The
booklet,
re¬
represent ; the
capital gains or /./j5. 2% Bonds of 1951-53.
NET PREMIUMS WRITTEN
Hull Risks
has
Corp.
10
it,
1943
in
*
*
■
Keystone
post-war depression and prepara¬
a
losses
tax
'
tion for
of
Fear
'/////*/■//>////
however, still remains favorably
Plan,"
which contains a hrief
history and current data on the
stockholders.
to
tion
314,849,000
companies.
exempt, and 85% of the in¬
come
representing dividends on
stocks is tax free. Other points of
National
erty of the trust fund.
also
Na¬
covering
Series and First
Fund
Trust
Mutual
ferent
finds, appears frequently to be a
pelling than profits for distribu¬
post-war outlook
of
representative
the
regarding
unit," the Board
motive of management more com¬
and
studies
,
both lead to favorable conclusions
long established policy,
Board
adds, upon undistrib¬
profits for funds with which
expand facilities and set up
on
are
.
uted
to
Many Government and municipal
bonds held in these portfolios are
running approximately 12% above
Agricultural Machinery
and Household Appliances. These
are
/ ,•
///•,;'
corporations depend, as a
matter of
322.357,000
♦Highest,;^ tLowest.
ness," currently appearing in the
Investment Timing service of Nafinal Securities & Research Corp.,
experience of industrial
managers.
of most fire insurance
306,470,000
Fire
the war, the
Board points out in making public
the results of its study based upon
net
aver¬
1940
—
"will
nancing program in the history of
the world" stated that the job of
thq
approximately 70% of total securities to be sold under the dir
operating profits, in the case rection of the War Finance Com¬
age
on
313,499,000
1942
following
constitutes
which
1941
Investment Trusts
period*
The companies have large
investment
portfolios,
income
from
302,050,000
1.:
great majority of
casualty writing/'com¬
1939
:
r~
Upon the ability of corporations
to survive post-war readjustments
their share of employment
■
1259,160,000
293,357,000
284,720,000
1936
the
panies.
275,052,000
1935
expansion
policy as regards
business
upon
comprehensive study
of a
Board in the course
Conference
effect
the
'
1934
profit^
was
statutory underwriting
a
for
Thursday, August 19, .,1943
1936-1939
of
on
fire /and
(Continued from Page 703)
Federal tax system by impeding the accumulation of
the ability of many corporations to
post-war readjustments, according to a
dustrial
of
Stocksi/§
/
substantial number
representative business executives consulted by the National In¬
survive
period
able
basis
from earnings threatens
reserves
FINANCIAL,CHRONICLE^
Bank & Insurance
Taxes
Th present
&
on
indi-
July 21 that the drive J
(Special to.The Financial Chronicle)
PEORIA, ILL.—Eugene Osborri
has become affiliated with Straus
Securities
Co., 135 South La Salle
St., Chicago, 111.
formerly
Mr. Osborn
Treasurer
of
&
and
brand-Osborn
Co.
was
Hildein
the
past was head of the Eugene Os¬
born Co. in Peoria.
'
Volume
158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4204
*
■<.
Calendar of New Security
v;V> '
Manufacturing
the
of
and
shares
outstanding.
Address—89
•
to
capital
and
the
balance
filed
has
Co.
be allocated to capital surplus.
Registration Statement No, 2-5179. Form
'
,
a
8-l'.v (7-10-43).
Offered Aug.
at
$19
share
per-
,
Boston. /7' Curtis.-''-•-/
cotton goods.
Street,
Business—Manufactures
-
;77,
Underwriting—Hemphill,
&
Co. WALTER E. HELLER & CO.
heads the group of
Other 7 Walter E. Heller & Co. has filed a
reg¬
names will be supplied
by amendment. • \\; istration statement for $3,000,000 serial
f, Offering—Offering price to public will notes/ due serially
$600,000 on Aug. 1 in
be supplied by amendment.
;>
each
year
from 1949 to 1953 inclusive.
Proceeds—Of the shares registered 73,Interest rates on maturities are given as
Noyes
underwriters.
514
J.
to
are
P.
be
sold
by
follows:
& Co., Inc., Henry Sturgis
Junius Spencer Morgan,
as
and
executors
underwriters
the
under the will
John
df
Pierpont
.
7,777/;7, //
V, •'.,/ 7/,
Registration Statement No. 2-5187. Form
v ; , • .7
' 7- 77V;•
Offered Aug. .17 at $16.75 per share by
Hemphill, Noyes & Co. and associates./v ■
METALLURGICAL
Fansteel
Metallurgical
registration
/the
of-
refinement
production
metal
•
rare-
metals
alloys
.-l
..
be
Harris,
Hall & Co.,
000,000, .and Goldman,' Sachs & Co., N. Y.,
$500,000.
and
;
•
Offering—Price to public
by
of ;rare
amendment.
Interest
dividend
will
rate
by
'
Levergood
be
applied
part to re¬
tire $2,400,000 term loans from banks and
balance to be used for general working
Underwriting—f Hallgarten> & ■ Co.
is
principal underwriter.; Others will .funds-. />.•-*
7:< - 7* f>
//vsi;/;;
j be' supplied by' amendment. ' 7 77./,: 7/ '/;7< /■; Registration Statement No. 2-5184. Form
Offering—Price to the/public'./will be A-2a (7-22-43). 77.-V /'• "77.7:--^"•.>,
(supplied by amendment.
ft*U- •/ Registration;./statement
effective.
5:30
j,
Proceeds—Net
proceeds from sale
of p.m..EWT oil Aug. 11, 1943.
-7/>7: 7/
named
Johns¬
stock
capital
will
of
added
the
to
and
company
work¬
will
Following is
Aug. 13, 1943 by Harris, Hall &
/-(Inc.),- The First Boston Corp. and
Goldman, Sachs & Co. /Price:/99 .'/a and
bit.-to 100 and int. according to maturity.
list of issues rwhose registration state¬
a
filed less than twenty days ago.
ments were
grouped according to the dates
are
tion statements will in normal
These issues
which the registra¬
on
become
effective, that
is twenty days after filing Cpnless accelerated at the dis¬
cretion of the SEC), except in the case of the securities of
certain foreign public authorities which normally become
effective in seven days.
These dates, unless otherwise specified, are as of 4:30
P.M. Eastern War Time as per rule 930 (b).
Offerings will rarely be made before the day following.;:
L
V - y/,; -r/'v/'*/ 7 77//, ''/V-'VV^/
THURSDAY, AUG. 19
NETHERLANDS
* tion
HOTEL
Harrington
statement
course
for
000 shares
3
Address
-located
Hotel
property
is
Kansas
Street,
one
i-
Business—Hotel
Canles
and
and
in
t
exchanged for
attacned
coupons
holder.
as
be
will,
None
with
in
enterprises
South
advisors
to
expand
American
to
the
North
coun¬
American
North
/,/; ;/
ties
exchange
TRANS-OCEANIC
AIR
Air
Trans-Oceanic
sell
in
and
products
America
real
business
and
elsewhere.
in
extent
and
preferred
under
estate,
of
To
ship
/
LINES,
y
indebtedness
the
merged
redemption
INC.
/
■;..
.
the
com¬
Oct.
on
number
.
-
S-l.
of
Class
to
be
sold
are
with
of
the
shares
A
at
$1
of
A
and
part
as
share
per
Class
.
of
of
B
and
equal
an
•
B
preferred stock,
5%
bonds,
series
first
due
on
about
or
stock,
$100
of
par,
Erie
County
s-l.
7
(8-5-43).
'
:7/-7;/.::./7;7//:7;":•' -7;
■
WEDNESDAY,
MILLING
COLORADO
AUG.
25
ELEVATOR
&
Colorado Milling & Elevator Co.
registration statement
a
cumulative
for
convertible
CO.
has filed
70,000
shares
Doyle
tered
preferred
••
the
world.
will be limited to
of
$1
and
if
paid
dividend
filed
$1.10
a
United
share
if
States
working
For
in
at
capital
$4
,
AUG.
cash
for
COUNSEL, S. A., INC.
Fiduciary Counsel, S. A., Inc., has regis¬
20,000 shares of 4.% non-cumulative
stock,
par
$100
per
purchase
delivered
were
the
113,004
shares
rate
cumu¬
preferred /stock.
preferred
on
The
will
stock
be
for
The
or
before
of
on
the
exercise
such
are
ex¬
1943.'
31,
In
presentation
company
common
is
of
war¬
registering
reserved for issue
exercise.
balances
general
warrants
Aug.
therein
of
be
added
the
corporate
(8-3-43).
to
the
company
present
and
used
purposes.
Statement No. 2-5194. Form
-•/
;••
share;
20,-
TUESDAY, AUG. 24
PENNSYLVANIA
.
ELECTRIC
CO.
Pennsylvania Electric Co. has filed a
registration statement- for $4,000,000 first
the
explain
search, 1819 Broadway, New York
City—Cloth—$1.50.
French
Building,
Denver,
.77-Vl7
7y/'.-/7/v,::,
Business—Engaged directly
subsidiaries
the
in
turing
and
related
post-war
selling
by
E.
flour,
meal,
merchandise.
cellaneous
of
business
storing,
beans,
cleaning
modities:. for
Union
Also
international
currency
tion
outlined
will
be
of
G.
F.
other
Denver;
Co.,
and
com¬
underwriters
Y.;
N.
Boettcher
Bosworth,
Denver;
in
others.
Principal
—
Chanute,
Paul
H.
Davis
Co.', Chicago, and Hornblower & WeeksN. Y.
-v\
v• 77/ •••."77:7/7
' 77
/-Offering—Offering price to the public
be
supplied by amendment.
from
Proceeds—Proceeds
stock/ together
received
the
the
the
net
sale
with
from
of
sale
of
the
proceeds
$3,000,000
$6,500,000 5%
vertible debentures due June 1, 1968.
outstanding
con¬
(8-6-43).
/;;7
MONDAY, AUG. 30
REPUBLIC
•'
DRILL
TOOL
&
CO.
.Republic Drill & Tool Co. has registered
debentures,
$1,250,000 5% -convertible
due
1, 1953, and 296,875 shares of com¬
stock, par $1, to be issued upon con¬
version
debentures.
of
South
Address—322
Street,
Green
Chi¬
of
sale
high
drills.
■
:
manufacture
carbon twist
the
and
',
-
Los
York
New
Angeles.
public 100 and ac¬
Aug. 1, 1943, to date
of delivery.
*'
• 7-:;77Z 77 /
Proceeds—Of the net proceeds, the com¬
Offering—Price
to
from
interest
•.
.
bank
standing
ferred
of
stock,
loan, $125,000 toward the
outstanding convertible pre¬
the
and
balance
working
to
capital. /
7
Registration Statement No. 2-5197. Form
A-l.
(8-11-43).
.
.
BRANIFF
Braniff
tration
common
AIRWAYS,
Airways,
to find their
stock,
has
value
par
Field,
filed
regis¬
a
shares
of
$2.50.
Dallas,
It
flown.
extensions
has
of
its
to
Offering—Price
supplied
applications
domestic
the
pending
public
will
be
Ov:
Underwriting—F. Eberstadt, New York,
heads the group of underwriters.
Others
will be named by amendment.
7/
7
Frocccds-r-Company
net
its
intends
to
add
Dr. Leland said that the confer-:
funds
as
additional
working
capital.
Proceeds subject to foregoing may
be applied to replacement of flight equip¬
ment
requisitioned by
the
government;
to
purchase of additional equipment necessary
to
meet passenger and cargo
traffic re¬
quirements
domestic
incident
on
routes;
to
present
and
to
purchase
operation
of
proposed
of
proposed
planes
trade-
feeder system
and purchase of planes
and
other
equipment
for
initiation
of
operations of proposed foreign routes.
area
Registration Statement No. 2-5198. Form
S-l.
public and
participants
opportunity
7
is
to
to both the
the press, but that
would be given an
to
"sum up
their
newspaper
Jacob
Dr.
men.
former
Viner,
partment, will discuss the mone¬
tary programs of the three na¬
tions at a dinner following the
meeting.
Lend-Lease For Ethiopia
lend-lease
ton
Hull
Minister
and
States
signed in Washing¬
9 by Secretary of
Ethiopia's Vice
was
Aug.
on
State
be¬
agreement
United
the
tween
and
of
Finance,
Yilma
De-
ressa.
incomplete this week.)
—
New
The
The
—
Bernard
Macmillan
Co.,
Avenue, New York
11,
York—Cloth—$3.75.
nomic
Department of the Bank for
International
Switzerland
Settlements,
Basle,
Paper —15
Swiss
;7vS-;.7".•.v.,::,;/7 7/7.7;.,7
francs.
—
agreement
under
the
was
terms
of
negotiated
the
Lend-
Le&se Pact of 1941,
which author¬
izes
to
to
lished by The MacLean Publish¬
ing .Co., Limited, Montreal and
Toronto—Cloth—$2.00.
RFC Collects $74 Million
On Loan To British
Secretary
Jones
the
the
Commerce
Reconstruction
Jesse
Aug. 4 that
on
Finance
Cor¬
poration has received payments
aggregating $74,405,476 during the
two years ended July 31 to apply
on
interest and principal of the
$425,000,000 loan made to Great
Britain.
The
July,
loan
1941,
been
authorized
was
and
disbursed.
President
whose
country
any
extend
aid
defense is
listed
securities
in
$390,000,000 has
The security for
41
British-owned
December
that
Ethiopia
be
in¬
this
was
noted in
our
issue
of Dec.
31, page 2327.
Ethiopia, the first nation to re¬
gain its territory after temporary
occupation by an Axis aggressor,
recently indicated its adherance
to the Declaration by
:
United Na¬
777
7'
.
un¬
States
United
States
companies and assign¬
ment of the earnings of the United
States
cluded in the list of countries eli¬
United
insurance
surance
States.
of
corporations, the capital stock of
deemed vital to the defense of the
tions.
of
announced
the loan consists of listed and
The
branches
applied
and
the
of 41
companies.
first
to
balance
British
current
to
in¬
Payments
are
interest
reducing the
principal of the loan.
The
used
war
proceeds of the loan
were
by Great Britain to pay for
supplies in this country con¬
tracted for prior to the enactment
of the lend-lease program.
Matye Again Trading For
Edward D. Jones & Co.
Ray Maple With Bacon Co.
(Special to The Financial Chronicle)
ST.
LOUIS,
Jones &
MO. —Edward
Co., 705 Olive St.,
D>
mem¬
bers of the New York and St. Louis
SAN
FRANCISCO, CALIF.—
Stock Exchanges and other lead¬
C. Maple has become asso¬
Exchanges,
announce
that
ciated
with Bacon
& Co.,
256 ing
John
Matye has returned from
Montgomery Street, members of
war work and is now local trader
the San Francisco and Los Ange¬
les Stock Exchanges.
Mr. Maple on the St. Louis Stock Exchange
for
their firm.
Mr. Matye had
was formerly associated with Nel¬
son Douglass & Co. and in the past
represented Edward D. Jones &
Ray
was
(8-12-43).7
(This list
be closed
would
ence
the
proceeds from the sale of the stock to
general
.
Europe,
Fifth
improvements.
"There is little general knowl¬
Gold, Silver and Paper Money—
edge regarding the United States Francis W. Hirst—Cobden Club,
plan, and less is known about the Dunford House, Midhurst, Sussex,
British and Canadian plans," Dr. England—Paper—6 d.
Leland
said
in
explaining the
reasons for calling this conference.
Survey of Corporate Securities
"We want to bring them all out in
(1943 Edition)—Issued by "The
the open at this meeting."
Financial Post" of Toronto—Pub¬
ance;
routes.
by amendment.
60
suggest possible
gible to receive lend-lease assist¬
Texas.
Business—Company is fifth largest com¬
mercial' airline in the country in passenger
miles
grounds and
common
President Roosevelt ordered last
400,000
New
Newman
United
INC.
Inc.,
for
statement
Address—Love
for
Minneapolis, will analyze
three plans critically, attempt
the
$100,000 to retire its out¬
will apply
pany
Paying for the War—Chester D.
Regulations Regarding Payments
Ethiopia
••■'\ -•
& Co.,
Underwriting-—Wyeth
in
Between Switzerland and Foreign
Countries — Monetary
and Eco¬
A
in
speed
Business—Engaged
Industry
Langum, economist for
cago.
and
pro¬
eco¬
nomic advisor to the Treasury De¬
,/7/7//•
':-/•:
and
the Federal Reserve Bank of Chi¬
cases"
Registration Statement No. 2-5196. Form
A-2.
Commerce
gram.
to
of
15-year 4% sinking fund debentures, pro¬
posed to be sold privately, are to be used
to redeem on or before Oct. 15, 1943, the
presently
for the Dominion
Bank of
and
engaged
and
and
Securities Co.,
Co.,
be
Brief
France—Paper.
stabiliza¬
by
cago, and Arthur Upgreen, econ¬
omist
forv the
Federal Reserve
through
grinding,: sacking
grains
farmers
Underwriting
will
A
He will be
Goldenweiser,
A.
feed
of
and of buying and selling
other grains, beans, coal and mis¬
wheat,
&
Africa,
monetary
manufac¬
and
business
products
are
North
Babcock, Eber Jeffery and Archie
W. Troelstrup—National Council
economist
for
the
Federal
Re¬
for the Social Studies, Washing¬
search Board. / 7-777//7/.:7 /•/ /'/v
ton, D. C.—Paper—30£.
"Canada's suggested solution to
assisted
"John K.
—Equitable
Col.
to
in
21
FIDUCIARY
preferred
share.
per
Registration
■.
tered
.
stock
of
Proceeds—Will
S-2.
SATURDAY,
stock
aggregate of 36,000 shares
36,000 shares of
investments.
(7-31-43).
an
common
stock
to
their
subscriptions.
Each
gives the holder the right to pur¬
anticipation
rants
expenses,
and
1940,
common
ercisable
Canadian
paid
V7/7
common
chase the number of shares named
upon
—
regis¬
stock, $1
proportion
currency
organization
such
warrant
Registration Statement No. 2-5192. Form
S-2.
October,
the. underwriters
currency.
Proceeds
has
said.
"Dr. Harry D. White, director of
by amendment.
Address
•!
conversion of the
convertible
..•
113,004 shares of
of
warrants for
250,000 shares, at a price
in
Corp.
common
7/; // <r:" ■ •■777
.
fering
of
of
in
of
Leland
backbone
issuance upon
lative
TUESDAY, AUG. 31
..
Underwriting—No underwriters.
Offering—To accomplish, that. objective
subscriptions to the stock initially offered
will
be
limited
to
the
active
operating
personnel of the corporation consisting of
flight
crews,
officials
and
department
heads of the corporation.
Initial offering
services
Tool
Mr.
named,
for
.
—
in
and
&
shares
36,000
National Bureau of Economic Re¬
the British Government yet to be
Towers, Governor of the Bank of
Canada, whose ideas, formed the
CORP.
Address
320-6
West
Taylor - Street,
Syracuse, N. Y.
•
;•/ 7.7'-'7/7X':7'
■y-'-.rBusiness—Engaged in the manufacture
of machinery, tools and parts.
Underwriting—None stated. 7
Offering—In connection with public ote
all
lines
Machine
TOOL
&
value...,;
par
peacetime nature, and will
air
MACHINE
economist, will be presented at
the meeting by representatives of
stock,,
without par value, and common stock, par
$1, the latter representing shares reserved
.
SUNDAY, AUG. 22
^
DOYLE
transportation by air or partly
by land and water and partly by air of
passengers, mails and freight and express
of
every
kind
through
maintenance
of
parts
,
'
war developed
by John M. Keynes, noted English
Public
interest,
retirement
■'■/./'; 'M.V..?'/;///
/
"British plans for monetary sta¬
bilization after the
Financing of Large Corpora¬
tions, 1920-39—Albert R. Koch-
under his leadership.
•■■,'/•
,
Class
and
purchase
(8-2-43).
;
include the
commercial
Man's Bookshelf
"Herald Tribune"
quote:
plan for the United States drafted
North,
perhaps
or
Proceeds—For working capital.
Registration Statement No. Y-5193. Form'
a
strictly military nature.
The contemplates activities of the corporation are
a
also
the division of monetary research
of the Treasury Department, will
outstanding
Co.
$3,500,000,
total
$7,675,000.
of proceeds, if any, will be added
general funds of the company.
Registration Statement No. 2-5195. Form
Aug.
■"./'■"//^ V'.-;"7
•
shares
together
Class
•
New York
we
The Business
Service Co., including
$4,175,000, and to the
Sept. 1, 1943, of
the then outstanding 5% non-voting
crued
Inc., has reg¬
"A" voting
Lines,
the
to
mon
in
America
respectively. v Shares of
can
only be purchased
.of
•
Chi¬
in
New York Agency of Societe Gen¬
erate to Further the Development
the
Electric
and
common
\;;,;///7,
of Captain Thomas G. Smith, by a
of Air Force Ferry Command pilots,
engaged in trans-Atlantic operations
essentially of
banks
Louis,
Minneapolis,
Cleveland, Kansas City, San Fran¬
cisco, Boston, Dallas and Atlanta.
From Chicago advices Aug. 13 to
Balance
and
group
'
Reserve
St.
cago,
Outline of General Information-
preferred
be made, directly by the company. 7-/',/
Offering—The preferred stock is to be
sold
at its par value of $100
per
share
Wilmington,
/•
'•,/. v;'
/: //;• 7 /<xY''.;7vY.r//1
Business—Organized under laws of State
of Delaware on Feb. 9, 1943, under leader-
<i now-
Aug. 26 by representatives of the three
on
Mr.
Keystone
will
underwrite-
Address—Du Pont Building,
<
Chicago
According to
an announcement on Aug. 13 by Simeon
Leland, Chairman of the Federal Reserve Bank of Chicago, 130
have already been made for the
meeting, including
E.
Keynes will be unable to attend.
of
ail
redemption
such
commodi¬
enterprises
South
South
of
(Del.
,
held in
Governments.
1978,
of
mortgage gold
of
redeem
stock
follows:
as
1943,
1,
to
necessary
panies
agent of
as
Underwriting—The offering will not be
made through underwriters or dealers but
will be made
no
...
istered 300,000..shares of
stock without par value.
in
manufacturers
products/ invest
effect exchange of bonds.
Registration Statement No. 2-5191. Form
(7-31-43).
and
American
Central
Purpose—To
S-l.
companies
help¬
their Central and South Ameri¬
financial, engineering, production and
'America and Central
in-
every other boncte
sold
for cash or
only with bondholders.
Underwriting—There are
ers of any
of the bonds.
'■
American
manufacture
exchange
the
other property and exchange
?
of
tribution of their goods in South America;
appertaining
or
same.
In effecting
bondholder will make
the Same basis
,| on
■
State
marketing problems; handle for North and
American
manufacturers
the
dis-1
unpaid
the Tves°nt
together
the
to
each
■i
the
solve
can
is
It
outstanding
how
| terest
.
laws-of
June
on
South
proposed that the
aggregating
$564,000
face
default.
amount will be
bonds
bonds
amount, ;of
bonds
new
.
face
.
South
ing
!
;
incorporated
American
act- as
Avenue,
proposed to engage in
following activities: As¬
of
more
activities
tries;
Building
$564,000
will be
Federal
■
Company in the amount
\ of
$600,000.
$36,000
of
the
aggregate
principal amount has been paid, leaving
t
is
It
North
their
and apartments. ; .
:
Offering—First
mortgage
bonds
were
/originally issued!on Nov. 1, 1927, by Mcr
or
sist
/City, Mo.
»
and
common
Class B common.
Connecticut
the
26,; 1943/! under
Delaware.
Main
3831-39
at
Class'A
par
1025
•—
has filed a registrar
Washington, D. C.
$564,000 10-year first
Business —- Was
Address—Netherlands
'
,
no
"
.77
;
of 'no par
20,000 shares of
V//'/' '-7
'
,.
(mortgage income bonds of the Netherlands
/Hotel.
post-war plans proposed by the
States, Great Britain and Canada for currency stabilization
directors and executive officers of<$-
becomes
bids
for
&
Helen
Chicago
the
effective
Loughridge &
7.7
consider
competi¬
statement
will ask
company
of
*
to
United
•
Offered
Co.
be
corporate purposes.- Five
of the net proceeds will
share
per
be
the
for general
:dollars
conference
registration
•»'.',' •"•
,,
common
A
reservations
Pa.
.
used
And Canada To Be Discussed In
:'
Street,
7 1■ V-'' 7 7/; ';
Business—Principal business is the pro¬
duction, transmission, distribution and sale
of electricity.
Underwriters—:To be supplied by amend¬
ment. '
" '■/•I.1' • '''
i"' ■ :
■/;/ : /
,;
Offering—As soon as practicable after
town,
all of
in
!
ing
Currency Siabilizaiion Plans Of U< S„ Britain
on
supplied
be
amendment.
estimated
to be supplied
•'<,77 7/'-;./7:77:
-
Proceeds—To
777
7-77/7
—
'•■•/ // /-'. 7
Underwriters
with
purchased
are
given as
—
Inc., Chicago,
$1,500,000; First Boston Corp., N. Y., $1,-
commercial
and
to
follows:
value. 777;
par
fabrication
and
compounds,
.products..
'
and
.stock
Address—222
1, 1973
preferred
•
concerns.
.
amounts
for
Chicago/'111. ; //
fBusiness—Business. of the, company and,
Its
subsidiaries consists- of the develop¬
and
Sept.
value.
par
1950,
Underwriting
Address—North
ment
bonds
,preferred
due
cumulative
$100
2%%; 1951, tive rule of the Securities and Exchange
2% % ; 1952, 2% %, and 1953, 3 %. i
.> - Commission for the sale of the bonds and
Address—105 West Adams Street,
Chi¬ preferred stock.
Prior to the issuance of
cago.
■/'■/;77'/7/.77 :7 77,7 the securities- registered
company
will
f Business-r-ETngaged
principally in financ¬ acquire •common stock/assets and fran¬
ing the sales and other current operations chises of Erie County Electric Co.
Com¬
of
manufacturers, • distributors,
dealers, pany also proposes to acquire assets and
merchants and others, • by purchasing or franchises of
Keystone Public* Service Co.
making advances on their accounts, notes, and Bradford Electric Co., affiliated com¬
acceptances or other documents, also in
panies.
Applications for all such acquisi¬
making -direct loans or advances against tions are now pending before the Com¬
inventory, .-, machinery,
equipment,
real mission..
•'
•;/' •' 7,
7 .V;
y ;>• y ,
-Z/
estate or other assets,
and in otherwise
Proceeds—Net proceeds from the sale of
lending funds and giving financial aid to. bonds and; stock will be applied to the
business
CORP.
Corp. has filed a
53,566 shares
statement
jof common stock, without
J
B
the
on
the
series
shares
Series
<
-
jS-2. (7-27-431; 7;
FANSTEEL
bonds
35,000
stock
.
.
stockholders.'.''''
,»•
-1949,
„
Morgan, while 10,000 are to be sold in.dividually by Henry Sturgis Morgan to
Hemphill, Noyes & Co.,. one of the under¬
writers.
Proceeds, will go. tor.theselling
j
and
.
Morgan
.Morgan
to
mortgage
rate
,
18, .1943
by' Hallgarten & Co., Blyth & Co., Inc;,
registered are now issued Central Republic Co. (Inc.), Paul H. Davis
;
.'' 7
/:'7/7 6 Co. and Paine, Webber, Jackson &
Franklin
•
Flotations:
will
-
registration statement for 83,514, shares, of;
capital" stock, par value $12.50 per share."
All
allocated
,
CO!
MANUFACTURING
Dwight
;
be
OFFERINGS
DWIGIIT
707
an
officer
of
Leo
G.
Laughlin Co. of Pasadena.
Mac-
Co.
on
the
St.
Louis
Stock
change for the past ten
Ex¬
years.
Firm Trading
Dwight Mfg. Co.
For Dealers
Teletype—N. Y. 1-971
IIAnovcr 2-0050
Thursday, August 19, 1943
CHRONICLE
COMMERCIAL & FINANCIAL
THE
708
Markets
A
common
stock (of
a
Merrimac
household necessity) which is
constantly becoming
widely distributed
more
Mfg. Co.
Common & Pfd,
CUBAN SECURITIES
■
Bendix Home
all issues
•
•
.
Peace Product
INC.
r.ARL MARKS & COFOREIGN
—
100% in war
1942, engaged
Since May,
SECURITIES
Appliances, Inc.
.
M. S. WlEN & Co.
f Cash position about $1,500,000
Monthly earnings (before taxes) about $100,000
Current
SPECIALISTS
Members N.
Y. Security Dealers Ass'n
25 Broad St., N.Y.
New York 4, N. Y.
50 Broad Street
Trading
information
further
and
market
Capt. Rickenbacker After Tour Of Fighting Fronts
Believes Germany
Will Hold Out Another Year
45
Out Of War As
RECTOB
'
Enterprise
miracle can bring
vic-<$>
tory sooner," he added:
"I have confidence in the
possi¬ particularly the aerial defenses of
bility of that miracle and the ac¬ Moscow, which he found "fan¬
tastic in their proportions."
complishment of that njiracle lies
"All employed in all plants in
•in the hearts, heads and hands of
Russia are on the incentive plan,"
every American man, woman and
•
reported J Capt.
Rickenbacker;
"With a minimum base wage for
all.
For
quality ancL: quantity
child, and your faith in God."
Capt. Rickenbacker, whose tour,
embracing 97 days, was made at
the instance of Secretary of War
.
they are paid in additional wage:
prospects of the oil industry,
on
Col. T. H.
great
President of Lion Oil Refining Company, said that
scientific strides have been made in the development and production
of oil and gas in the past few years.
"And these advances are bound
to make themselves felt in solving many of the problems which will
comfort us in the post-war era," he said.
"Many thinking people believe^
paint, lacquer, varnish and enamel
that petroleum is destined to play
industry;
a
greater part in the chemical
2. Alcohols of various kinds;
world than ever before, and some
3. Aldehydes which are used in
even feel that it should, and will,
large quantities in the,resin and
become the leader in this indus¬
plastics industries;
try. With this view I concur, and
4. Nitric acid for use in making
I believe that > the normal func¬
smokeless powder and other ex¬
tions of the industry of supplying
lubricants and fuels,
combined plosives and in the lacquer in¬
dustry;' i'"
and for outstanding effort
part of employees, addi¬
tional
quantity, and " quality of
'statement to newspaper men at
food is added to the
increased
the Hotel Roosevelt in New York
with the vast opportunities in the
;on Aug. 17.
Stating that "I think wages. There is no absenteeism realm of chemistry will provide a
explaining field of usefulness and prosperity
we
will have to break Germany problem," he added,
tardy workmen
are
first
from the inside out.
We can't af- that
for the oil industry not dreamed
then
suffer
re¬
ford to break her from the out¬ reprimanded,
of a decade ago.
•
side in," he reported the Germans duced wages and food allowances
"For some time the petroleum
and finally, in flagrant cases, are
•as having tremendous man power
industry has been producing a
r. V
'left, and declared them to be "a discharged.
long list of refinery products in
In the New York "Times" Capt.
courageous daring and intelligent
addition to fuel oil, gasoline and
Rickenbacker was reported as fol¬
enemy." The New York "Sun" of
kerosene from crude.
This list
lows:
-Sf.:
Aug. 17 in quoting this, further in¬
proceeds up and down the scale
Captain Rickenbacker remarked from
dicated in part what he had to say
high octane aviation gasoline
-as
follows:
"They also have a that whereas for the last seyeral to roofing asphalts and asphalt
years Russia has been moving to
•deep-eyed 'fanaticism' about this
plastic cements. And chemical re¬
the right, the United
States, at
war, which spurs them on.
search is enlarging the list daily.
the same time, has been "tending
"In
addition to
butadiene, a
"But the Germans are finding
"as
views
first,
Stimson, expressed his
a private citizen" in a
Henry L.
-
discussing the post-war
In
Barton,
of the best,
found their material
the
5.
Ammonia
,
ammonium
in the manu¬
and
compounds for use
facture of fertilizers;
6. Benzol and toluol which lend
,
oxidation to yield
materials useful in the produce
tion of surface coating and resins
to
themselves
for the
rapidly expanding
said:■■;irv.--'"fv;
"If Mr.
V ■
they keep going on as they
you'll find Russia coming out
to the left."
is
He
>
Stalin had not seen fit
considered it advisable to par¬
or
in the conferences with
President and Mr. Churchill,
must bear in mind that he is
ticipate
our
we
head of
total
great nation, fighting a
and has little time for
a
war
anything but immediate
statement
His
visited
had
results."
reported that he
military
South Amer¬
American
establishments
in
ica, North Africa, Algiers, Libya,
Egypt, India, China, Russia, Per¬
sia,
Tunis,
England,
Iceland,
Greenland, Labrador and at home.
Especially
glowing
Capt.
was
Rickenbacker's report
on
Russia.
He found the Russians anxious to
know
better.
the
Americans
and British
He found them convinced
of victory and a
world peace.
He
Triumph
ism while we are moving
backer
was
Ricken¬
Captain
bolshevism?"
of
developments
in the oil industry must await the
cessation of hostilities to make
themselves felt economically. But
An
—
Sold
——
Quoted
submitted recently
Bank
and
Insurance
York Stock Exchange
Broadway N. Y. BOwling Green 9-7021
Bell Teletype
MY 1-61
703
Stocks....
Security Flotations 707
represent a
Investment Trusts
........
.
.. .....
Reporter on Governments.
Utility
Railroad
Securities
...
Securities
Salesman's
Tomorrow's
Says
....•
seemed to lean toward
ters
tor
700
the
705
702
tions would
704
•
Corner........ 693
Markets—Walter Whyte
....704
as
the status of gold as a
in exchange stabilization
basis
on
1-1779
Blair & Co.
Air Communications
Copper Canyon Mining
Great Amer. Industries
General Aviation Equipt.
Cent. Pub. Util. 5% '52
L. D. Sherman & Co.
30
Pine
Street, New York 5
Telephone WHitehall 4-7970
'<1
Bell System Teletype NY 1-2218 i
BUY WAR BONDS
*Ft. Dodge, Des Moines
&
Southern Ry.4/91 and Common
*Utica & Mohawk Valley Ry
4%-41
''
Consolidated Dearborn Com.
Southern Traction 5/50
Rochester Transit Common
*Circular
Blair F.
available
on
request
Claybaugh & Co.
Philadelphia
Member
Stock
Exchange
Tin Plate Co.
plan,
the
plan provided for an
fund
Newburger-Hano Admit
and unlike
Canadian
international
created
ad¬
New-
6% Bonds
Morgenstern will be
Peter
mitted
to
partnership
in
Certificates of Deposit
burger & Hano, members of the
New York and Philadelphia Stock
Mr. Mor¬
will act as alternate on
of the New York Stock
Common
Stock
Exchanges, as of today.
genstern
participate.
British
exchange
fac¬
and
member na¬
which
"Like the American
the
American
such vital mat¬
views in regard to
705
689
Securities
Real Estate Securities.
by Canada, a
which met with much ap¬
proval here, perhaps because it
693
Canadian Securities
Public
HAY, FALES & CO.
stabilization plan said to
plan
Page
Municipal News and Notes
Members New
Y.
:■::.
Our
71
York 5, N. Y-
Teletype N.
Whitehall 3-0550
Tele. NY 1-2178'
1 ^ compromise between American and British proposals and embodying
suggestions'made at informal conferences in Washington by financial
New York
Asked whether he attributed the
experts from other of the United Nations is to be disclosed this
Syracuse, Harrisburg;, Pittsburgh
tendency in this country to the week by Secretary of the Treasury Morgenthau, according to Wash¬
]
Miami Beach
Administration, Captain Rocken- ington advices Aug. 17 to the New York "Times."
It will be sent to the Senate Fi-<S>
backer replied that he referred to
through capital subscriptions by
So. Pacific Interesting t.
nance and House Ways and Means
the "Administration" as well as
member countries.
It suggested
Committees for their opinion and
Southern Pacific (Oregon Line)
that the new stabilization fund
to other factors.
will be the subject of conference
have assured resources of at least 4V2S of 1977 offer an interesting
in Chicago Aug. 26 to be held at
$12,000,000,000, as compared with situation according to a circular
the instance of Chairman Simeon
York Corp. Attractive
the $5,000,000,000 proposed in the
E. Leland of the Chicago Federal
prepared by Raymond & Co., 148
American plan and the lack of
Common stock of the York Cor¬
Reserve Bank, called with a view
State Street, Boston, Mass. Copies
any definite figure in the British
poration offers an interesting situ¬ to consider the currency stabiliza¬
plan. ■
v
•" of this circular may be obtained
ation, according to a memoran¬ tion plans of the United States,
"On
the
question of voting from Raymond & Co. upon reGreat Britain and Canada.
Re¬
dum issued by Peltason, Tenenpower, the Canadian plan differed
garding the Treasury's compro¬
baum, Inc., Landreth Building, St. mise proposal, the "Times" ac¬ substantially from the American
plan.
It provided that, with one
Louis, Mo. Copies of this memo¬ count from Washington Aug. 17
exception, all decisions be taken
's ■
randum may be had upon request said:
by majority vote. In the Ameri¬
"It is understood that in impor¬
from Peltason, Tenenbaum, Inc.
can
plan many decisions would
Empire Sheet &
tant respects it resembles the plan
require a four-fifth vote."
Calendar of New
Bought
international currency
Dlgby 4-4832
"Yes, in a sense," he replied.
INDEX
Explosives
Morgenthaa To Disclose Compromise Currency
Plan; Will Figure In Discussions In Chicago
asked. •£■■■£
Phone
the discoveries and
very
toward
Members New York Security Dealers Assn.
40 Exchange PI., New
plastics
\
"If
S. H. dUNGER Co.
;:■ :v
"As in other industries many
when the great day comes,
we
will be geared and prepared to
important contribution which
produce many things which will
now
seems
to be well initiated,
not
bombable," he added.
be a boon to men in the new
are
viewed the pictures of the bomb¬
and will probably develop with¬
world that is bound to come. The
of this war the greatest democracy out
any additional encouragement,
ing of Hamburg while he was in
new field of usefulness and serv¬
in the world, while if we keep go¬ the petroleum industry after the
England and that German city
ice will redound immeasuarably to
took "a terrific beating," he re¬
war will be able to produce easily
ing on the way we are we'll be
the benefit and prosperity of the
and in great volume—
ported.
■;•
- :
"
where they were 25 years ago," he
oil industry."
"No people on earth can stand
1.
Numerous solvents for the
.v'
that kind of punishment—not even declared.
"Do you mean to suggest that
ourselves," he said.
Of Russia Capt. Rickenbacker
Russia is moving toward capital¬
have nothing which
they
Fireproofing
'::v
industry.
-
out
.
E. W. Bliss, Pfds.
1-576
york
new
6015
Scientific Advances In Oil
battle
that "only a
1-1397
Stores
Teletype
Bell
Industry Will Solve
Many Post-War Problems, Says Gel. Barton
of a 55,000 mile tour of inspection
fronts of the war, Capt. Edward V. Rickenbacker
advanced the opinion that "Germany will not even crack before the
Fall of 1944, at the best, at our present rate of progress toward
total victory" and that it may take another year or more to destroy
"another savage and treacherous enemy in the Pacific."
Declaring
:
HAnover 2-8780
Y.
Lionel Corp.
Following the completion
the
N.
Happiness Candy
Greatest Democracy
of
Teletype
NE W: Y O R K 5
telephone \
philadelphia
2-3600
V ?
Association
Dealers
STREET,
NASSAU
telephone
Expects Russia To Come
Security
York
New
' ' •'■ •'
INCORPORATED
.
^
v
& Company
Kobbe, Gearhart
Members
request
on
Co.
Common & Pfd.
Laundry.
work.
nationally used Bendix Home
the floor
Exchange
and
at
will
for
make
Harry
his headquarters
the firm's New
chiefly \ 39 Broadway.
Grabosky,
York office at
Hill, Thompson & Co., In
Markets
120
and Situations
for
Deale
Broadway, New York £
Tel. REctor 2-2020
Tele. NY l-2<
@FedFRASER