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AUG 3
Final
..w-;.-'1•1
•
■
■
'
1
;
■
1
■'
'
.
In 2 Sections-Section
YEARS
ESTABLISHED OVER100
Edition
m
I
1 ■
;us. ADM,
library
Reg. U. S. Pat. Office
Volume
New
Number 4408
162
Foid Predicts Higher
"Full
Auto
By M. II. HUNTER
82nd
Birthday, However, Cau¬
tions
That Employment
Magnate,
DEARBORN,
■
observing
MICH. — Henry
his 82nd birth¬
day, Monday, July 30,
"future of unequalled
•
v
v
'
,
Freedom in America
on
Hinges on Right of Private
Industry to Go Forward Un¬
hampered. 7
r
Ford,
predicted a
prosperity."
Mr. Ford's
By
ob-
birthday
quietly with
Mrs.
Ford.
"The nation
and the world
are
the
on
threshold of
a
prosperity and
standard
of
that
living
never
before
was
consid¬
ered
possible,"
Mr. Ford said.
Henry Ford
"This
has
now
its
nation
chance
greatest
to
forge ahead.
"There
economic
s o c
i
Regular
Features
Calls Attention to Published List of
or
continues to be engaged in the most
u r
Editor, Commercial and Financial Chronicle:
<
Your publication in the July 26, 1945, issue
and Financial Chronicle," of my letter to you of
toward
road
the Nazi form
s o c
i
in Eng¬
land, as everyVirgil
Dr.
else,
during the
Jordan
V-.
,
war
and is embodied in the post¬
full-employment program of
William Beveridge, to which
Liberal Party and a large part
the
Conservative Party
are
Sir
or
more
not
show,
shall
I
the end, for
the terminus of
the same;
on
*An
York,
Jordan be¬
Club of New
address by Dr.
the
*,
pigmies in
c
Rotary
Hotel
Commodore,
July 26, 1945.
New
and
the interested public
■
•
.
•
dealers in securities, r
actions
Sakolski's letter to
Dr.
you
July 24th, printed on page 410
of
the
July 26th issue of the
of
he
"Chronicle,"
two
to
refers
problems in connection with loans
by banks to dealers.
In the in¬
terest of clearing up other pos¬
sible misunderstandings or uncer¬
regarding the regulation,
tainties
the
following comments
may
be
listed
on
exchange
an
the
on
exchange
trans¬
involv¬
ing the stock may be infrequent.
In order to facilitate compliance
of
Board
'stock registered on a
curities exchange,' a
national
bank
less than $53,000,000,Why, this is less than the
deficit for the fiscal year
000.
federal
1943!
?
V
The
peak of the annual war.
probably been passed.
costs
of
conversion
from;
has
peace
to war industry have large-
(Continued
u
may
rely upon any reasonably current
record of stocks
(Continued
Bond
Alaska Airlines
Bought—Sold—Quoted
COMMON STOCK
so
registered that
page
on
State and
pub-
525)
Information
on
request
LILIENTIIAL
CO.
&
and
other
London
•
for Banks, Brokers
25 Broad St., New York
HAnover 2-0600
64 Wall Street, New
4, N. Y.
Teletype NY 1-210
Chicago
Cleveland
or
Albany
Buffalo
Syracuse
Pittsburgh
Dallas
Wilkes Barre
Baltimore
Springfield
Woonsocket
from
INC.OtPOt A»«»
Troy
48
NEW YORK
SPRING ST.
LOS ANGELES 14
5
Acme Aluminum Alloys,
CORPORATE
BOND
'
j
Members
New
York Curb Exchange
Tel.
NATIONAL BANK
New York 4
DIgby 4-7800
OF
Inc.
Common & Preferred
New
SECONDARY
Preferred
.
90c
Conv.
Prospectus
Kobbe, Gearhart & Co.
14 WALL ST.. NEW
YORK 5.N.Y.
TELEPHONE-RECTOR 2-6300
Tel.
REctor 2-3600
Teletype N. Y. 1-576
Philadelphia Telephone:
Enterprise 6015
on
request '
Members New York Stock Exchange
Dealers Ass'n
120
New York 5
45 Nassau Street
•
;
'
Broadway, New York 5, N. Y.
Telephone:
HART SMITH & CO.
.
>-
••••
'
request
IRA haupt &
REctor
Members
New
York
Teletype
Security
Dealers
52 WILLIAM ST., N. Y. 5
Bell
Teletype NY
NY 1-635
Assn.
HAnover 2-0980
1-395
2-8600
New York
Bell
«'• '•
J;
•
Preferred
Reynolds & Co.
INCORPORATED
MEMBERS NEW YORK STOCK EXCHANGE
Y. Security
.
Analysis upon
.
Members of
"
Members N.
"\"
Solar Aircraft Company
MARKETS
C°
England
Public Service Co.
Corporation
BULL, HOLDEN
CITY OF NEW YORK
THE
Tele. NY 1-733
Aireon Manufacturing
FINANCE
BROKERS
CHASE
THE
HARDY&CO.
30 Broad St.
634 SO.
WALL STREET
Bond Department
Members New York Stock Exchange
HUGH W. LONG and COMPANY
PHILADELPHIA
BOSTON
DEALERS
AUTHORIZED
York 5
and Dealers
BE
PROM
OBTAINED
INVESTMENT SECURITIES
Rep.
MAY
PROSPECTUS
Established 1927
Exchanges
Geneva
Bonds
.
R. H. Johnson & Co.
Members New York Stock Exchange
Brokerage
Service
Hirsch & Co.
HIRSCH,
533)
Municipal
Common Stock
to
on page
se¬
Instrument Corp.
Successors
with
World
through
Revolution
The
the
in which
have engaged, beginning
U,
provided in Section 3(c) of the
regulation that "in determining
whether or not a security is a
all
of
War I, was
costs
of Regulation
Governors has
total
our
cost
wars
with the provisions
is published or specified in a
First, Dr. Sakolski refers to the
(Continued on page 536)
but
we
listed
be
costly;
ways
Dr. M. H. Hunter
al¬
are
wars
the
may
in pros¬
ecuting World
War II.
True,
exchange, and
regarding
the
applicability
of
Regulation U to loans by banks to
be
of
costs
ment
only
stocks
i-
govern-
regional securities exchange
stock may
a
p a r
with sim¬
the federal
*
and that even though a
helpful:
York City,
on
m
ilar
he calls attention to the fact that
some
o
son
of "The Commercial
July 23, commenting
~~
structure
operating
costs are mere
on
national securities
In
make much differ¬
for England in
ence
ital.
and
System, should be helpful
in clearing up. misunderstandings
or
uncertainties in the minds of
serve
committed.
less fully
will
It
but their cap¬
practical difficulty of ascertain¬
ing whether or not a particular
stock is registered (listed) on a
readers
seemed
giant business
ente rprises;
Error" and dis¬
cussing Regulation U of the Board
of Governors of the Federal Re¬
titled "Margin for
oped
where
en-^
article
Sakolski's
Dr.
upon
lism
a
devel¬
which
Stocks Registered
T.
and
T.
A.
Unlisted Stocks Not Affected Unless Loan Is
Purpose of Purchasing or Carrying a Listed Stock.
For
chill to
drift down the
of
Such structures as General Motors and
Exchanges.
un¬
Winston
C h
as
General
Ownership.
Amplifies
Dealer Margin Rales
Farther
either road is essentially
of
tries and Leads to Government
have
his
continue
der
Throttles Private Indus¬
Ourselves" and Asserts Policy of Low Interest
Reserve Bank Official
lism
d ustry,
n
fore
;
a
party
program of
g o v e r nment
ownership, of
of
544.
Magnitude Could Be Supported, if "We Owe It Co
Debt of Any
a
'
—11
Labor
"Employment
hinges on the
right of private industry to go
forward unhampered. There must
be more and more industry; more
Index
i
and
lee
the
(Continued on page 526)
That
form
under Mr. At-
be solved.
page
the
Attacks Administration's Theory
ing Have Been Deliberately Ignored.
Our Federal Government
war,
problems — human,
and political—that must
are
Treasury's Claim That the Borrowing Is Anti-
England, the British people will have added
whether they prefer to take the road costly enterprise of all time.
By this time today in
Illinois
Inflationary and Creates Prosperity.; Says Evils of Excessive Borrow¬
the votes that will determine
up
of
his
Must
and in Addition Must Determine What Each Person
Produce and How He Is to Be Employed.
from his home
he
fessor Hunter Refutes
This Income,
toward
where
Head, Department of Economics, University of
Contending That the War Is Financed Too Largely by Borrowing, Pro¬
Implications of "Full Employment" as Em¬
bodied in the Full Employment Bill and Social Security Philosophy and
Concludes It Will Mean the Abandonment of Constitutional Restrictions
on Government and Lead to Eventual Serfdom of the Individual.
Holds
That If Government Guarantees An Income It Must Control the Use of
Russian
served
VIRGIL JORDAN*
National Industrial Conference Board
President of the
issued by him
Dearborn
DR.
Dr. Jordan Analyzes the
statement was
in
Copy
a
Dangers of War-Time Fiscal Policy
Employment" and
Living Standards
Price 60 Cents
York, N. Y., Thursday, August 2, 1945
Montreal
Toronto
Broadway
New York 6
111
REctor
2-3100
CO.
Principal Exchanges
10. Post Office
Sq.
Boston 9
Hancock 3750
Tele. NY 1-1920
Direct
Private Wire to Boston
& FINANCIAL
THE COMMERCIAL
514
Thursday, August 2, 1945
CHRONICLE
;Trading Markets in:
We Maintain Active
Lukens Steel
Markets in U. S. FUNDS for
Jacob Ruppert
Bausch & Lomb
P. R. HALLQRY
Common
& Preferred
BROWN COMPANY, Common
& GO., ING.
BULOLO GOLD DREDGING
Armstrong Rubber
STEEP ROCK IRON MINES
Bought—Sold—Quoted
NORANDA MINES
Maguire Industries
Dep't.
Canadian Securities
KING & KING
Goodbody & Co.
Established 1920
■
Exchange PL,
40
BEIiXI
TELETYPE NY
BROADWAY
115
HA 2-2772
N.Y. 5
New
New
York Stock Exchange
York Curb Exchange
Members New York Stock Exchange
25 Broad St.f New York 4f N. Y.
HAnover 2-0700
Cohu & Torrey Open
Causes of the Bull Market
Anemostat Corp.
By IVAN
.
Professor
Baltimore Stock Exchange
Broadway, N. Y. 5
WOrth 2-4230
/
Bell Teletype N. Y.
'members of
Exchange, an¬
nounce the opening of a branch
office in Tampa, Florida, in the
Wallace S. Building, on Aug. 1st.
This new office will be under the
direction of O. W. Kuhn, who has
the investment
business in Tampa for the last
twenty years.
Mr. Kuhn was
formerly president of Kuhn, Mor¬
gan
;
and
pushing prices
up have been
wealth
3/6$, 1956
Traded on N. Y.
of
necessary
activities.
This
York 5
has
several
war
cost
hundreds
Teletype NY 1-1548
Bell System
'
as
war
COrtlandt 7-4070
Telephone
of
billions
f
of
dollars. In the
United
Campbell
Common
and
Bell
Preferred
will
lose
Street, New York 5
of the wealth spent on war
be
a
consumed in the war
large part of its value
or
with
In addition to
the national debt
there must be added also the in¬
come from taxes which has been
the
1-1843
increase of
for war purposes.
These
expenditures are only part
The loss
of the services of millions of ablebodied men during the war; the
spent
Boston
Maine
&
R.R.
Stamped Preferreds
Com,
&
Northern New
Peoples
;
money
of the costs of the war.
-
England Public Service
New
Pfds.
England Co.
million
Light & Power
or
the
disorganization
countless
other liabilities will have to be
On the asset side we have
learned
a
great
deal
duction which may be
&Yeme«uiCompcmu
about pro¬
adopted to
peacetime uses but the net result
up to the present time would seem
a destruction of wealth ag¬
Y. Security Dealers Assn.
to be
Hanover 2-4850
1-1126 &
who have been killed
men
crippled;
added.
St., N. Y. S
Bell Teletypes—NY
a
of civilian industry and
Jacob Ruppert
37 Wall
than
of more
loss
permanent
$3 Preferred
Members N.
1127
or five hundred
dollars to the United
gregating four
billions
of
(The human losses cannot
he valued in money.)
Simultane¬
States.
ously
Trading Markets m
i
with
this
(Continued
vast
destruction
on page
523)
Industrial
One thing is certain, Uncle Sam is not big enough or
enough to be permanent "almoner to the world."
:
Lend
habilitation
G.A.Saxion&CovInc.
WHitehall 4-4970 I8
NY 1-603
Simons, Unburn & Co.
Members New York Stock
25 Broad St., New
HAnover 2-0600
York Curb Exchange
•'£ NEW YORK 5
-jtv -
Teletype NY 1-1140
<
HAnover 2-9470
Trading Markets
Cross
1945, total ex¬
the
44
Lend-
$8,800,000,000.
We; are
pledged to contribute to the In¬
account
the
ternational Bank for Reconstruc¬
Lease
were
34.8% of
its capital of $9,100,000,000 or $3,175,000,000,000.
Our stake in the
Bretton Woods monetary set-up
will thus be almost 6 billion dol¬
684,000
(par¬
tially offset,
by '5 -billions
reverse
lars.
Lease)
-
Lease
-
lions.
Emanuel
Rough-
Celler
,
available
funds
Lend-Lease
remaining ^ear of opera¬
tions.-
•
:
v"
power
of
the
Export-
$1,300,000,000
to
the
England,
I R
Y.
L
I
Tel*. NY 1-210
.
Detroit
-
Y.
Security Dealers Ass'n
Broadway, New York 6, N. Y.
BArclay 7-0570
NY 1-1026
Ne
Buffalo
Pittsburgh
-
-
Members Cleveland Stock
Union
Bought——Sold—Quoted
.
,
Morris Stein & Co.
Established 1924
■•■/-■vv'
50 Broad
Commerce Bldg.,
.....
29 Broadway, New
v
Street, NEW YORK 4, N. Y.
Teletype NY 1 -2866
\
HAnover 2-4341
BOUGHT
—
SOLD
Common
—
QUOTED
Exchange
Cleveland 14
^(do/IU
York 8
WHitehall 4-3640
Direct Private Wire to
&
"
MEMBERS NEW
r
:
Utilities Corp.
Telephone MAin 8500
Cleveland
St. Louis.
STOCKS
Preferred
Security Dealers Ass'n
to
MINING & OIL
Ohio Securities
Place, N. Y. 0
HA 2-2400
Teletype NY 1-378-377
Wires
111
American States
74 Trinity
Private
F. H. Roller & Co., inc.
Members N.
:vv
for
Troster.Currie&Summers
N.
'52
* Analysis on request
U.
a
INCORPORATED'
•Members
;
>
as
the
that
launch
&
Tobacco*
and
Belgium,-Holland
post-yar assurance
S.
is prepared to
program of world co¬
\
*An address by Congressman operation. This aid will give the
Celler
before
the International President a strong leverage in in¬
It
Trade Section of the New York fluencing political settlements.
Board of Trade, New York City, also means that as Lend-Lease aid
July 27, 1945. a
(Continued on page 538) :
addition
r
Armed with Con¬
gressional authority, the President
will be in a position, through the
Export-Import Bank to offer re¬
construction
loans
to
Russia,
France,
Plans call for making ready in
;
Hartman
Indiana Limestone, 6s,
$3,500,000",000.
ly, this still leaves $21,500,000,000
for the
Great American Industries*
-
lending
bil¬
37
Development
Import Bank from $700,000,000 to
expenditure of
over
and
"A"*
Recently Congress increased the
making a net
Lend
of
tion
$42,633,-
Lend
Delaware Rayon
nations, which will be a cap¬
ital
■
New Bedford Rayon "A"*
Fund, i. e. 31%
total to be contributed by
of
penditures on
in
Re¬
We
nation Monetary
Through June
in
Relief and
Administration.
Company*
Liquidometer Corp.*
pledged to pay $2,750,000,000
into
the
Bretton
Woods Inter-
Lease.
-
Exchange
York 4, N. Y.
8T.
WALL
are
WM.J.MERICKA6-CO.
Bought—Sold—Quoted
Members New
64
wealthy
Nations
United
Request
»
Frank C. Masterson & Co.
Since March
Common
Upon
Purchasing
of India and South Africa.
Tudor City Units
{Exporters,
EngineeringCo.*
*Circular
Tybor Stores
Says the* Continuation of the Sterling Area Dollar Pool Is Contrary io
Principles Laid Pown at Bretton Woods and Urges 'Protest? by American
Preferred
STOCKS & BONDS
Common, 6%s & 7s
Prevented Nations in the Sterling Area From
Has
Pool
Wellman
Teietyoe
I ! JO PINE ST., N. Y. 5
System Teletype NY 1-1919
Detroit Int'l Bridge
Congressional District
Needed American Goods and Cites the Cases
Lock & Hardware
-
Exchange
WHitehall 4-8120
Broadway
\
New York Market
Public Utility
-
Memoers New York Curb
Lend-Lease and in Extend¬
ing Aid to Allies to Look to Our Own Interests, Congressman Celler
Attacks the British Sterling Area Dollar Pool as "Sticking a Cinder in
the Eye of American Traders/1
Maintains That the Operation of the
Segal
■
Members New York Stock Exchange
Asserting It Is Time to Consider the Cost of
Railroad
:
Edward A. Purcell &Co.
65
CELLER*
Congressman from the New York 15th
two
the end of the war.
WHitehall 3-1223
Teletype NY
Common
Foreign Trade
is 11, 1941, we.
have
author¬
of
ized
$64,192,value will be salvaged but it' is
498,000 for
probably safe to say that 75% or
H.G. BRUNS & CO.
Telephone:
England Pub* Service
Bell
stroyed wealth when' the war
over.
Many billions of dollars
more
20 Pine
increased
hundred billion
dollars since the war began. Most
of this has been or. will be de¬
Struthers-Wells
Common
lic
Wright
than
more
Common
S.
pub¬
debt has
been
Caribbean Sugar
A.
Ivan
Dr.
Common
v
States
alone the
Corporation
Byrndun
New
National Bank
of Tampa.
By HON. EMANUEL
,
time
result
the
Exchange
Street, New
31 Nassau
going
the
the
same
Curb Exchange
York Curb
Members New
at
on
Vanderhoef & Robinson
'
And
great de¬
struction of
the
Savoy Plaza
•
of the bond depart¬
New England
Common
pte Sterling Bloc Pool
by
ooscured
1952-1957
7s,
Osgood B
Northern
process
Securities
Power
manager
ment of the First
April, 1942, a Bull Market has been in progress in stocks,
bonds, commodities and real estate.
The economic forces feeding the
revaluation?
——-
Internationa!
& Co., Inc., and prior thereto
was
Since
Gruen Watch
engaged in
been
Speculative Fever.
1-1227 -
Stock
York
New
Market to (1) Increased National Income
the Heavy War Output; (2) Money and Credit In¬
flation; (3) the Fears of Inflation Leading to the Desire to Exchange
Cheap Money for Future Claims to Productive Resources; and (4) vhe
Policy of Low Interest Rates Which Stimulates the Purchase of Inferior
Grade Securities Offering Higher Income Yields.
Looks for a Contin¬
uous Shortage of; Goods and a Large Demand for Capital in Post-War
Period, and Says Reorganization of Solvent Utilities Is Fanning the
120
.
branch offices
our
Torrey,
&
Cohu
Brooklyn College
and Savings Due to
Mitchell & Company
Direct wires to
Tampa Branch with
as Mgr.
WRIGHT
of Economics,
NY 1-1557
New Orleans, La.-Birmingham, Ala.
0. W. Kuhn
Wright Ascribes the Bull
Dr.
of America
Members
Request
on
2-7815
REctor
Tel.
1-423
*
Quoted
Steiner, Rouse & Co
BROADWAY, NEW YORK
120
Teletype NY 1-672
Telephone BArcJay 7-0100
——
Members
Exchanges
NEW YORK 6, N. Y.
Exchange and Other Principal
Members N. Y. Stock
Sold
—
Analysis.
McDonnell &ro.
■
Members
York Security Dealers Ass'n
Nat'l Ass'n of Securities Dealers, Inc.
New
Bought
Cleveland
One
Wall
YORK STOCK
EXCHANGE
Street, New York
Telephone
5, N. Y.
BOwling Green 9-4800
Volume 162
*
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4408
The
COMMERCIAL and
FINANCIAL
Distribution facilities for
j
CHRONICLE
We
are
interested in
offerings of
Reg. U. S. Patent Office
High Grade
William B, Ditna Company
BLOCKS
'immmmmmmm—mmmm AND COMPANY
■
'."
PiiblisK&r$
Public
25 Park Place, New York 8
A THOUSAND
Utility and Industrial
AND ONE
REctor 2-9570 to 9576
*
UNLISTED
'
Nation-wide marketing
t
32
Broadway
every
CHICAGO 4
Teletype
a
25 Broad Sheet, Net£ York
Telephone HAnover 2-4300
week
Thursday
Obsolete Securities Dept.#
Teletype NY 1-5
Members Neu> York Stock
dividends make
;
99
Exchange
.
WALL
STREET, NEW YORK
telephone WHitehall 4-6551
(general news and advertising issue) ;>
Board of Trade Bldg.
DIgby 4-8640
NY 1-032. 834
.
Published twice
or
people sick of holding in¬
active stocks and bonds, and they
sell them to us. A' lot of the Stuff
we buy makes us sick* too, but we
have a good doctor.'
Spencer Trask & Co.
Thursday, August 2, 1945
Security Dealers Ass'a
NEW YORK 4
1
William P. Riggs, Business Manage?
of
lot
a
*
STRAUSS BROS.
New York
—without interest
William Dana SeibBrt, President
SECURITIES
DAYS
Editor ahd Publisher
,
Members
PREFERRED STOCKS
Herbert D, Seibert,
and every
Monday
Harrison 2075
.
Teletype CO 129
Direct Wire Service
New York-—Chicago—-St. Louis
*
Kansas City—Loo Angeles /■;
{complete statistical issue—market quo¬
tation
records,:. corporation, .'banking,
clearings, state and city news, etc.)
1
TITLE COMPANY
CERTIFICATES
Other Orates: r 135 S. he, Salle St.,
Chicago 3, 111. (Telephone: State 0613 )>
1 Drapers' Gardens, London, E, C., Eng¬
land, c/o Edwards & Smith.
Copyright 194$ by William B. Dana
vtCompany
BOUGHT
SOLD
-
QUOTED
•
.
Complete Statistical Information
^
Reentered as second-class matter Feb¬
ruary
York,
25/ 1942, at1 the post office at 4NeW
N. Y„ under the Act of March
:
3, 1879.
Members New York Security Dealers Assn.
Subscriptions in United States and
Possessions, $26.00 per year; In Dominion
of Canada,; $27.50 per year; South and
Centra!vAmerica, Spain; Mexico and
: Ctaba,
$29.50 per year; - Great Britain,
Continental Europe (except SJpain), Asia,
Australia ahd Africa* $31.00 per year. /
.
•
■
Other Publications
39 Broadway
New York
HAnover 2-8970
6, N. Y.
Teletype NY 1-1203
Lukens Steel
«
Bank and
Quotation Record—Mth.$25 jrr.
Monthly Earnings Record—Mth...$25 yr.
*Jacob
NOTE—On account of the fluctuations
in the rate of
Ruppert
Common
:-M:
exchange, remittances for
foreign subscriptions and advertisements
tr.uet be made in New York funds.
J Stromberg Carlson
Maguire Industries
International Detrola
Post Mortem
Bought—Sold-—Quoted.
\ NASD By-Law Amendments for Registration of Sales} men, Traders, Partners, Officers, Etc., Will Become Effec¬
tive in the Absence of SEC Disapproval. Belief Prevalent
.These Amendments Had SEC Blessing in Advance.
Meshed Activities of SEC and NASD Should Be Disclosed
and Publicized. Complete Secrecy of Future Voting Pos¬
sible. Method Disclosed. Our American Way of life In¬
cluding Freedohl of Trade Is Endangered.
?
.
Now that the amendments to the NASD
*
*
Members
New
rent situation.
; First
ments,
1;
we
;
Belt System
I '
on
our
new
JI-476S
:
,
Teletype, NY 1-2480
?
Harris A JCwHte
Robert M. Hanii
TRADING MARKETS
by-laws provid¬
Bartgis Bros.
Billing* & Spencer
.Federal Screw Works
Expresse-Aereo
proposed by-law amend¬
generally*, and the cost of the
One of
%
5,N.Yl
Private Wires to Chicago & Los Angeles
Copyrighted by
,
deal with; voting
,
York Security Dealers Assn.
HAnover
and «ther employees, have passed, it is fitting that we
give attention to a number of problems inherent in the cur¬
j.
Request
40 Exch. PL, New York
cers,
:
on
J.F.Reilly&Co.
ing for the registration of salesmen, traders, partners, offi¬
,
Prospectus
Laclede-Christy Clay Prod,
set-up.
Bought —Sold
readers writes us, "If the Governors, who
certainly. "Speak, for the Secretary, are truthful in asserting
that no increase in fees is contemplated, they must either be
I ignorant of the fact that to keep track of 10,000 or more daily
,
'
| Changing personnel is
a very
m m.
expensive job, or contemplate
economies that should have been made years
m.
Mm ML MM MM
Members New York
170 Broadway
Bell
ago."
System
SLA
•
.
«L MM
» =3
Security Dealers Ass'n,
WOrth 2-0300
Teletype NY 1-84
H
It cannot be honestly denied that the cost of implement¬
ing this set-up will be substantial. How does the NASD pro¬
pose to defray the expense thereof? Are not the member
firms entitled to know this now?
Governors to impart this
:SUGARm
Is it the intention of the
information forthwith?
,
.
What is to be
amendments?
expected in membership voting on future
Will the NASD adopt the same tactics that
SECURITIES
they have used heretofore? Will the Governors either di¬
rectly, or through the District Chairmen, or other officials,
pressure the members to vote and indicate the course that
the voting should take?
<
;
DUNNE & CO
r
|
If past performances are to be .followed, then there
no hope that the Governors or those under their
direction and control will adopt a hands-off policy in con¬
Mfmbers New York Security Dealers Assn.
25
meed be
Broad St., New York
4,M. Y.?
WHitehall 3-0272-—Teletype NY 1-956
Private Wire to Boston
voting on future proposed amendments to the
by-laws. This being so, it is apparent that the Board does
Aot intend to adopt the safeguards as we see. them inherent
.
nection with
'
in Article IX of the
j-
by-laws.
;
which is clear upon its face, and
provides for separate votes on proposed by-law
amendments, one by the Board of Governors and the other
by the membership of the association, the Governors-have
apparently read a construction or interpretation which perinits them by -direct contact to influence and control ' the
=i
Into that Article,
which
'
vote of the
iv-. This is
IX> .proposed additions,
v
'
atterations,
,
.■ •
t
*
NejW Analysis
Second quarter ana lysis
available to dealers only
on request
C, E. Unterberg & Co.
Members N. Y. Security Dealers>Ass'n
...; >>
or
by-laty$,;inay jbe initiated Iby ahy* 25;
(Continued;oft .jpage-522)
& Trust Co.*
National Radiator Co.
.
amendments to $the
V
s
bantam car
membership.
*
v
an evil which requires immediate remedy*
Under Article
f
-
Public National Rank
American
&
;
y
■'' •' Established 1944
;
' -
'
61
74 frinity Place, New YorkS, N. Y.:
feiephaiie:
BDwling Green B-MOO
J
Teletypet NY
Broadway, Now York 6, N.Y*
Telephone BOwling Green 6-3561«1
1-315
Teletype NY 1-1660
Thursday, August 2, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
516
BOSTON
North River Insurance
NASHAWENA MILLS
Winters & Crampton
A leading
i:
.•.t-';-.®
manufacturer of hardware
Approximate Market IVi
•
FIRST COLONY CORPORATION
Am. Bantam
I
per
Com. & Pfd.*
®f COAST - TO
New York
Buckeye Steel Castings*
Chicago
•
SI. Louis
-
-
Kansas City
STRAUSS BROS.®
General Machinery
32
General Tin
Gerber Products t
Board of
Broadway
YORK 4
2-4500—120
Amer. Industries
General Industries Co.
National Stamping Co.
Reports furnished on request
MASS.
9,
Teletype BS 424
Mercier, McDowell
& Dolphyn
4
Buhl Bldg.,
GRAND RAPIDS
Secondary Distributions
Stocks
Bank and Insurance
Pledger & Company, Inc.
Liberty Aircraft Products
Maguire Industries
>
LOS ANGELES
Industrials—Utilities
■
Inactive Securities
SIMPLEX PAPER
.
I Majestic Radio & Tel.
F. L. PUTNAM & CO..
P. R. Mallory
Franklin Railway
Tel.
H. M.
Metal Thermit
Byllesby & Co.
Common
Supply Co.
j Michigan Chemical*
Community
Moxie Co.
Common
Bought——Sold—-Quoted
] Pollak
,
Class
Jacob Ruppert,
W. J. Banigan
Com.f
Successors
\
Standard Stoker
Preferred
A
Members Detroit
30
Tel.
Pine
Class "A"
*Con. Cement Corp.
Phone 94336
Street,
*Kingan & Co.
New York 5, N. Y.
Stromberg Carlson
Hew Group
Triumph Explosives
Co., Pfd.
Tele. GR 184
Buhl Bldg...
ST. LOUIS
♦Central Iron & Steel
Tele. NY 1-1790
'l
*
Taca Airways*
,
Detroit Office,
^Riverside Cement
Security Dealers Assn.
Digby 4-7900
Stock Exchange
GRAND RAPIDS 2, MICH.
Common5
&
white, noble & co.
TRADING MARKETS
BERWALD & CO.
HAnover 2-8380
Broadway, N. Y. 4
Request
Water Service
&
Members New York
& CO.
11)04
Established
50
Sterling Engine
& Co.
to
CHAS. H. JONES
Furnished
Report
Giant Portland Cement
Sheraton Corp.
U. S. Finishing
Springfield
on
iPunta Alegre Sugar
Purolator*
Stock
Common
Preferred
&
Harrington & Richardson
BEQUEST
ON
ANALYSIS
Mass.
LIBerty 2340
Providence
Portland
CORP.
INC.
Franklin Street, Boston 10,
77
National Bronze & Aluminum
IVJastic Asphalt
I W. L. Maxson
H.
Tele. DE 507
KANSAS CITY
Cement*
Mfg. Co.
K. Porter, Com.
Detroit 26
Cadillac 5752
England Coverage
New
Retail
Baum, Bemheimer Co.
ST. LOUIS
Members Detroit Stock Exchange
England Markets
New
129
CG
Teletype
.
White & Company
| International Detrola
'
1-714
$33.00.
Bank Building
®
Capitol 4330
2075
Harrison
;
Teletype NY 1-832-834
Howell Elec. Motors
j
Broadway
DETROIT
Trade Bldg.
CHICAGO
DIgby 4-8640
,
1008
Security Dealers Assn.
Y.
System Teletype N. Y,
®
Security Dealers Ass'n
NEW
|
share.
BOSTON
Pfd.*
Members New York
Lawrence Port.
REctor
Bell
Pont, Homsey Co.
du
Los Angeles
-
Shawmut
Electrolux*
j Great
Established
Members N.
||
COAST
-
Buda Co.*
'
J.K.Riee,Jr.&€o
INQUIRIES INVITED
Brockway Motors
I
Jrving Trust Co. 7\:7
Home Indemnity Co.
share
per
Price—About
Bowser, Inc.*
Douglas Shoe, Com &
i)u Mont Lab. "A"
Insurance
Homestead
«. ■
Direct Private Wire Service
Appliances
Bendix Home
••
...
Currently—Paying $2.00
| ArmstrongRubber,Com.&Pfd.f
1
®_ -®
.■
in 1944.
Car, Com. & Pfd.
Am. Win. Glass,
.
Earned—$4.03
Hardware*
American
•/.;
-
quick assets in excess of
$20 per share.
Net
Securities
New York 5
Teletype NY 1-2425
2-7793
Hanover
Aetna Standard Eng.
j
t.
Capital Stock
'
,
Underwriters and Distributors of Investment
70 Pine Street
■
75,000 Shares
and refrigerators
for stoves
j,'.
Capitalization
*Circular Available
■
|LERNER
of Opinions Presented
10
Tel.
Warner-Swasey
HUB
STIX: & CO.
& CO.
POST OFFICE SQUARE
BOSTON 9, MASS.
,7
INVESTMENT SECURITIES
Teletype BS 69
1990
509 ©LIVC
STREET
Wickwire-Spencer
■
present in this issue some more of the letters re¬
by the "Chronicle" in connection with its request for
comments from dealers and other interested parties regard¬
We
■-
Trading Markets
ST.LOUISI/MO;
ceived
Alabama Mills*
bidding. Other communica¬
tions appeared in our columns of July 12, July 19 and July
26, starting on the fourth page in each issue.
As previously
stated, we welcome the views of those who have not as yet
acted on our invitation and would ask that correspondence
be addressed to Editor, Commercial and Financial Chronicle,
Boston & Maine R.R. Prior Pfd.
ing the subject of competitive
Aspinook Corp.
Berkshire Fine Spinning
Consolidated Textile
Darlington Mfg.
New
Boston Edison
Jersey Worsted
Textron Warrants
Boston Terminal Co.
3V26,
1947
New England
Members St. Louis Stock Exchange
.
,
Lime
LAKE CITY
SALT
Submarine Signal
WE SPECIALIZE
Place, New York 8, N. Y.
Where the writer requests that neither
IN
25 Park
his own identity
with which he is connected be re¬
desire for anonymity will be carefully ob¬
Dayton Haipey & Company
and/or that of the firm
rr American Gas
'
Central El. & Gas Com.
75 Federal
vealed, such
& Power
Private New York Telephone
a
served.
,
^
„
Cons. Elec. & Gas Pfd.
C.
|~ Iowa Southern Util.
I
|
'
C; H.
Nassau Suffolk Ltg.,
New
Pfd.
I
England Pub. Serv., Com.
Northern New England Co.
Portland Elec. Pow.,
the
favor
'
,
V
have
Preferreds
HEctor 2-5035
■:
EDWARD L. BURTON
Company, Jackson,
of competitive
railroad or public
market for
Puget Sound Pow. & Lt., Com.
Tenn.
& COMPANY
bidding on railroad, public
Sugar'
Utah
Salt Lake
these corporations
for a great many
City 1,
BELL SYSTEM
coming into the
utility than the parties
competitive bids.
In most instances
doing business with these bankers
?, '
ESTABLISHED 1899
U. S.
160 S. Main Street
TELETYPE SU 464
Oldest Investment House
in Utah
Boston Sand & Gravel
years,
| Southeast^ Corp., Spec. Part.*
I
in
^
-
LITTLE
for
Queensboro Gas & Elec. 6 Pfd.
|
not
Little &
H.
utility and industrial securities for the reason that the bankers
these institutions in most instances are more familiar with the set-up
of
Prior Pfd.
am
*
*
*
j Conn. Lt. & Pr. Com.
.
Utah Power & Light
Street, Boston 10
*Bulletin
or
Circular
"fProspectus
upon
request
been
and I think they have enjoyed sound economical financing
great many years. It has been my observation that by com¬
petitive bidding for securities of public utilities and railroads they
have never received a great deal for their securities than they .did
heretofore.
There are, of course, a few exceptions to this rule.
;
for
a
*
Upon Request
*
*
Unlisted Order Clerk
leneral Stock & Bond Corp.
*
10
WALTER
L.
MORGAN
President, W. L. Morgan & Co.,
I
asva
M'embers N. Y. Security Dealers
120
Assn.
BROADWAY, NEW YORK
REctor 2-8700
NY
5
irgg'
Direct Wires to Chicago and Phila.
ENTERPRISE 'PHONES
Hartf'd 6] II
Buff. 6024
Bos. 2100
am
POST
OFFICE
SQUARE
®;
secur¬
sized
house.
with
Box
Financial
York 8, N. Y.
price than would otherwise be the case.
As a professional buyer of
securities, and through my duties as president of Wellington Fund, I
,
listed
connection
Chronicle, 25 Park Place, New
character because,
bidding means that I pay a higher
represent thousands of small investors.
I never could understand
why the SEC which is supposed to represent these many small
investors, i.e., the public, would favor competitive bidding.
By so
doing the SEC is favoring the issuing companies and getting them
higher prices rather than representing the public whom the SEC
(Continued on page 543)
®
' ®
and
wishes
M-718, Commercial &
Telephone: Liberty 8817
opposed to competitive bidding of any
buyer of securities, competitive
the-counter
ities,
medium
BOSTON 9
Philadelphia
Accustomed to handling over-
Now with J. C.
Bradford Co.
(Special to The Financial
ChronicleJ
With Sills, Minton & Co.
(Special to The Financial
.
•.
NASHVILLE,
TENN. — Martin
B. Key, Jr., has been
added to the
staff of J. C. Bradford & Co.,
Union Street.
418
Chronicle)
CHICAGO, ILL —Owen M. Ma¬
son
has
become
associated with
& Company,
South La Salle Street.
Sills,
Minton
209
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4408
162
Building Industry
THE HAJOCA CORPORATION
CANADIAN
SECURITIES
senior to the common stock and the
improvement in working capital amounts to $6,427,687, or $106.50 per
common
share, since December 1934.
Dividends currently being paid
at the rate of $2.50 annually.
V
. •
Total
reduction
in
obligations
Bank of Montreal
Canadian Bk. of Commerce
Priced about 52
Circular
on
"IT'S HARD TO GET,
Request
'
1
X
.[
'
,
!
l,
«
v
'
5
"
TODAY!
51
'
'
•
Royal Bank of Canada
»
«
'
Andian National
The
war
Established 1914
74
get"—is nothing
Trinity Place, New York 6, N. Y.
Teletype: NY 1-375
Telephone: BOwling Green 9-7400
security
But
Fonda, Johnstown
we
George R. Cooley & Co.
As
result,
a
Southeastern
52
to
1924
William St.. New York 5, N. Y.
WHiteball 4-3990
For
Sun Life Assurance
HART SMITH S CO,
happens th&t
52
time
Next
'phone
We found that
5'/2s-6s 1946
6s
E' 'A
'
>
"
i.
WALTER KANE, Asst. Mgr.
l,5
\
'
i
"
r
Pressprich 8C Co.
'
f'
t
x
\
i
"
.
.
Consols
4%
v
~
63 William Street
Telephone HAnover 2-1700
Teletype NY 1-993
Joseph Manus & Co.
Members New
Telephone; HAnover 2-2600
■
201 Devonshire Street,
\
Frederic H. Hatch & Co.
1-573
39 Broadway
Digby 4-3122
Members N.
BOSTON 10
Members New York Stock
New York 6
Teletype NY 1-1610
Y,
Security Dealers Asf'n
Wall Street
63
York Curb Exchange
Chicago Stock Exchange
Angeles
Exchange
Bell
New York
Teletype
5, N. Y.
NY 1-897
GOVERNMENT, MUNICIPAL, RAILROAD,
UTILITY,
PUBLIC
v.-
BONDS
New
v>^
Activity Maintained
A P. /.j)
■ ■
Wanted:
Offerings
STOCKS
v..
■
•
INDUSTRIAL
INVESTMENT
AND
Vv
Business
'%
; -
Issues :;v!
Securities Co. of N. Y.
Incorporated
STREET
Los
5%s '51
'
NEW YORK 5
NEW YORK 4, N. Y.
to
1948
4s
\
Minneapolis & St. Louis Ry.
Established 1922
Wire
1954
Public Service
Eastern Minnesota Pr.
MICHAEL HEANEY, Mgr.
Teletypest NY 1-1017-18 &
Toronto
Crescent Public Service
Curb and Unlis ted
qAllen & Company
1-395
Community Water Service
teletype us?
or
HAnover 2-0980
Montreal
-
need active cooperation, why not
you
R.W.
Direct
N. Y. 5
Teletype NY
New York
Securities
BROAD
St.,
Bell
East Coast
Special Part.
30
WILLIAM
mutually profitable to help others get business.
Teletype NY 1-2419
Corp.
thing,
security needed.
cooperation with other dealers.
it's
one
Paper Co.
Noranda Mines
good part of our business is devoted
a
INC.
Established
Minnesota & Ontario
close touch with the markets for all
have the very
we
Electrolux
frequently do know where to
we
Western Lumber
Canadian
International Utilities
types- of securities—and, it sometimes
All Issues
Preferred
Common &
in very
are
Canadian Pacific Rwy.
Some
know where to look.
fact is,
the
investment dealers.
look for those hard-to-find securities.
& Gloversville
Conditioning
new to
Corp.
Brown Company Com. & Pfd,
other has always been "hard to get"—
or
unless you
U. S. Air
of stock-shy storekeepers—"it's hard to
cry
York, Lackawanna &
M E"
We|t.
U. S. Guarantee &
Phila., Reading C & I
ing Changes in the Rate Are Expected Soon—-Total Volume of Business
Holding Up Even Better Than Production—Above-Average Crops in
Sight Again This Year.
t"
August"Business Bulletin" of LaSalle Extension
University, A Correspondence Institutiont Chicago, III.)
(From the
1
i
Continued readjustment of the economic system to the
-
changing
outstanding charac¬
the
of
Federal Government will take the
business
large part of what is being pro¬
duced in factories.
By the end of
the
current
situation/ Many of the shifts are
i being made more smoothly than
was
considered possible. Others,
such
as
in
transportation, are
proving more
turbing.
The
dis¬
redeployment of
over
long distances re¬
quires many more passenger cars.
much freight as last year is
?
being hauled, most of it much far¬
ther and over routes which have
[[not been handling such quantities
troops
Although the rail¬
roads are keeping up the excel¬
lent work which they have done
the
past.
output is scheduled
be around 70%
at the
The
difficult and
As
in
the year war
to
of what it
was
beginning.
of
effects
the
cutbacks
in
dent
during the next few weeks
but so far they have involved no
major jolt to total industrial out¬
put. They, have, of course, been
very striking and
significant in
many factories and communities.
The policy has been to make the
cancellations
or
contracts with
as
reduction of
war
little disturbance
4's,
Analyzes British Exchange Controls
so
that conditions may
somewhat more serious
enormous
"become
[during the next few months.
and
credit
of
review
business
agreements effecting international
exchange controls, such as have
been concluded in the last nine
with
months
Egypt,
Belgium,
Sweden, Turkey and other coun¬
stating
though
Al¬
"agreements
that
of this character will have a bene¬
effect
ficial
more
relations
commercial
normal
be¬
participants," the re¬
calls for "appropriate inter¬
the
tween
view
faciliating
of
national
as
well
as
American ac¬
designed to create the condi¬
tions necessary for a gradual re¬
tion
laxation"
trols
of these
exchange con¬
restrictive
other
and
trade
\War Production Still
r
,
Although
has
declined
the Main Job
production
17%
for
war
since the high
point in March and by the end of
this month will be down 20 %,
J war materials and equipment still
constitute the major part of fac¬
practices: abroad.
gard to the series of important bi¬
lateral financial agreements which
the British Government has con¬
war
production rather than in spe¬
cially-built war plants. They have
been made in large, diversified
plants rather than in single-prod¬
no
••
text of the Reserve
Bank's
statement follows:
Considerable
interest
has
been
evidenced in this country with re¬
cluded
during
past
thfe
nine
months with various foreign coun¬
plants.®'vV; tries, including, in chronological
Many shifts have also
been order, Belgium, Egypt, Sweden.
made in types of products turned France, Turkey, and Iraq.
This
uct
or
one-contract
article
will
the
examine
three
War exoenditures out. Some items, such as medium
the
Western
[ are around $7,000,000,000 monthly tanks, have been practically elimi¬ agreements1 with
nated. Some other types of trans¬ European countries, which exhibit
and amount to more than 60%
equipment,
including a common pattern, while those
>of all income payments to indi¬ portation
Egypt
Turkey, and Iraq,
viduals
each
month. Well over the production of ships, have been with
which are of a somewhat differ¬
$4,000,000,000 is being spent reduced much more than the
ent character, will be treated in
monthly for munitions, war ma¬ average reduction. Several items
tory
output.
terials,
and
equipment.
The
apiount may become somewhat
spaaller during the remainder of
the year but unless the war in the
have been'increased, among
of several
which
hundred
are
increases
per
cent in the production
(Continued on page 530)
Members New York Stock Exchange
1 Wall St., New York 5,
a
later article.
The
recent
of Belgium,
which
N. Y.
Teletype NY 1-955.
DIgby 4-70(50
Exchange Practices.
The Federal Reserve Bank of
its
„:
.
.
tional Action toCreate ConditionsThat Will Relax Re¬
strictive
'59
Gude, Winmill & Co.
Banfcf of N. Y. Sees Need for Interna¬
possible. They have been made
mostly in tight labor areas where
workers laid off could most easily
find employment elsewhere. They
have been made in civilian plants
as
'73
Chicago, Great Western
which had been converted to
[throughout/the, war period, the
[ demand for transportation will be
■
'
■
,
5's,
tries not in the Sterling area.
orders will become more evi¬
war
.
Federal Reserve
requirements of the one-front war in the Pacific and the energetic
efforts to speed up the reconvert
sion of such facilities as can be Pacific progresses much more fa¬
spared for normal peacetime out¬ vorably than now anticipated, the
put are
teristics
''f
-
Gradual—No Strik¬
Downward Trend in Industrial Production Is Very
-
?
6's, '49
Phila., Reading C & I
;!§!!» Ala High Level #i||
•
/
are
V
-
agreements
with
Sweden,
and France,
essentially an exten¬
New York, in the August issue of
conditions, describes the British
S>
sion of somewhat similar
which
pacts
Britain
American Cyanamid
financial
Preferred
concluded
with these countries early in the
war, are
Eastern Sugar
Associates, Common
primarily designed to fa¬
of orderly
cilitate the resumption
commercial
and
financial
rela¬
tionships, long interrupted by the
German occupation of Europe, be¬
tween
Britain and each of the
countries concerned. This objec¬
tive is to be achieved in each case
Ohio Match Co.
Frederic H. Hatch & Co.
(1) the establishment of pay¬
ments machinery adjusted to the
by:
Incorporated
Members N.
Y.
63 Wall Street
regime of close exchange controls
prevailing on each side; (2) com¬
mitments
regarding
exchange
Bell
,
'
v
y ■>
Security Dealers Ast'n
Teletype NY 1-897
•
:
:
.
Y.!
New York 5, N.
?
—
rates; (3) cooperation in common
exchange control problems and in
the control of undesirable capital
movements; and, most important,
Eastern
(4) mutual provision of overdraft
or credits to insure, that
Sugar®
facilities
Associates
be
impeded by shortages of each
currency or of other ac¬
other's
®
Common & Preferred
trade between the parties will not
f®/
ceptable means of payment, such
as
gold and dollars. The agree¬
ment between Britain and France
Quotations Upon Request
also contains a special set
FA IK It
of pro¬
visions, which will not be dis¬
cussed here, designed to settle the
complicated
mass
of
financial
claims between the two countries
New
and France, their respec¬
monetary areas, i.e., the coun-
gium,
tive
York
Stock
l.-ivf
Exchange
York Coffee & Sugar
120 WALL
tries of the
YOjRK
2-96li
sterling area, the Bel¬
gian
monetary * area,
French franc area.
.
■
:
«£•
Exchange
ST., NEW
TEL. HANOVER
arising out of the prosecution of
the war.
Included in the three
agreements, it might be noted, are
not only the four principals, but
also, in the case of Britain, Bel¬
& CO.
Members
New
^ Continued on page
ancj
535)
the
.
.
.
*
f*£KV titfrkS Ski't
Vjfc1
1*'
THE COMMERCIAL &
PANAMA COCA-COLA
1945
Quarterly dividend paid July 16,
Delaware Power & Light Co.
$.50
—
(to date) $1.75
"
—
;
Analysis
New
r
r(
-
price-—29
Securities
Orders Executed
Pacific Coast
Schwabacher & Co
Paine; Webber, Jackson & Curtis
<
r.
York 6, N. Y.
9-7400
Teletype: NY 1-375
established
1879
Members
-
New York Stock Exchange
New
York
Curb Exchange
Chicago Board of
14 Wall
Benguet
Consolidated
& other
Public
Carbon Monoxide
.
Utility Securities
private
Teletype NY 1-928
Wires to
Principal Officet
Santa Barbara ;
San> Francisco
Monterey
—
(Associate)
Trade
New York 5, N. Y.
Street
COrtlandt 7-4150
Eliminator^
Mining
on
Exchanges
Bought—-Sold— Quoted
Trinity Place, New
Telephone: BOwling Green
Pacific Coast
V
Common
Established 1914
.
V?:;'
Southwestern Public Service Co.
HOIT,HQSE§TR0STER
74
' ' ' 1
*•-
Common
1943 $4.50
request
on
,
Public Service Co. of Indiana
1944 $2.75
Approximate selling
,
Common
"
DIVIDENDS:
1345
Thursday, August 2, 1945,
FINANCIAL CHRONICLE
Oakland
Sacramento
—
'
American Insulator
Fresno
■
Philippine Securities
Swiss bonds &
United Artists Theatre
Circuit
French
Dutch,
Belgian,
M. H. Rhodes,
Securities
British
F. BLEIBTREU &
79 Wall St., New
Tomorrow's Markets
shares
Co., Inc.
Inc.
Walter Whyte
Says-—-
PETER BARKEN
York 5, N. Y.
32 Broadway/, New
Telephone HAnover 2-8681
York 4, N. Y.
)
By WALTER WHYTE
Tele. NY 1-25
Tel. Whitehall 4-6430
Election news gave the mar¬
ket
IIMEL1NESS
Becomes
more
with appreciation
CEMENT SHAKES
/■
.
;
■
about
about
and
as
$3.90... .market
a
about
Send for "Successful Investment
14.
Planning*' (a ten-year, record)
\-.v:SK
The
,
-'.''f-'v* ">?■
^
13.
good speculation
ESTABLISHED
plete
Members
JO Post Office'Square, Boston 9, Mass.
16 Court St.,
Teletype Bs 69.
Telephone Hubbard 1990.
New
acted
1935
York Security Dealers
fash¬
ion. It went down. And in go¬
Ass'n
ing down unloosed a flock of
TR. 5-5054
B'klyn 2, New York
in characteristic
was
tion returns,
Security Adjustment Corp
Investment Securities
the British elec¬
.Being a com¬
surprise, the market
long day
circular available.
LERNER & CO.
biggest piece of news
to hit the Street in many a
specific information, send us your,
list
of
unsatisfactory
holdings,
or
amount of cash available for investment,
For
♦Riverside Cement Class B
*
0
*
*
about
$14.35... .market
♦Consolidated Cement Class A Cumulative)
Arrears
possibilities
We 8Uffges<: ;v::
;
♦Riverside Cement $1.25 Cumulative Class A
Arrears
excuse
stocks point
Buy Bonds To Yield 6%
apparent with each
passing day for
for break.
Many
down some more;
many do not. Time to buy;
when everybody expects
them to go lower.
DEALERS
FOR
interpretations
pessimistic
of which
forecasts
and
communization of
dustry
was
♦
m
column's view¬
this
From
the
only a small part;
♦
MSTA Motes
-
English in¬
point the results of the elec¬
tions are already in, for good
or bad.
There's nothing one
"40 OVER 8"
has to
from a stock
viewpoint, is obvious¬
ly, what do we do from here
market
the
& Arnold, New
Orleans District Chairman, for advertising secured
to date.
V
With less than four weeks to go
can we
call
on our
members
To do that
this the most successful drive for advertising
in the NSTA Supplement of the "Commercial & Financial
■wvj.
on.
'
.
for their aid in making
Chronicle."
look at the break.
Business Mail's
Bookshelf
3, Tennesese 3, Detroit 15 up 2, Grand Rapids 3, Louisville 5, Clevelend 13, Cincinnati 6, up 3, New Orleans 7, Texas 3, St. Louis 13,
The
August
28,
1945—Cleveland Security Traders Association annual
at Manakiki Country Club.
29
&
30,
1945—National
business
t
meeting
and
Security Traders
election
of
Association,
wasn't
the
sort
that
from tired souls. Some¬
body somewhere knew some¬
thing.
meeting
Inc.
But
be certain that if it
been
something else;
selling in the past few
comes
summer
the election.
was
weeks
of I. B. A. at Park-Hill Country Club.
/
was
which
have
August 17, 1945—Bond Club of Denver Annual Frolic with Rocky Mountain Group
24,
it
For weeks
was
weren't the elections it would
Calendar of Coming Events
:
un¬
shouting that
coming. The news
actually brought it
you can
•
,
the market
about
Minneapolis 4, Chicago 17, and New York 62 up 21.
~; K. I. M. your advertising committee and prove to them they have
your support.—Harold B. Smith, Chairman NSTA Advertising Com¬
mittee, Collin, Norton & Co., New York, N. Y.; A. W. Tryder, ViceChairman NSTA Advertising Committee, W. H. Newbold's Son & Co.,
,
have to
things that
happened in the past. Take a
We would like to hear from San Francisco, and further from Los
Philadelphia.
we
derstand certain
Angeles and Denver.
A1 Tryder, your Vice-Chairman, of W. H. Newbold's Son & Co., Philadelphia, has informed the committee that
Philadelphia will perform in its usual custom very shortly.
Our
tabulation for this week is: Baltimore 5, Boston 3, Florida 4, Georgia
August
adjust accordingly. The
first adjustment,
past week. Thanks are also due to Bert Horning, Stifel,
Nicolaus & Co., St. Louis District Chairman, and Joe Weil, Weil
in
do about them. One now
can
May we sincerely thank Joe C. Phillips, of Pacific Northwest
Company, our Seattle district chairman, and Ray Bernardi of Cray
McFawn & Co., our Detroit district chairman for their demonstration
.
annual
officers.
But
out the
Associated Electric 5s 1961
Over-the-Counter Quotation Services
er
now
that the
news
is
long¬
It might be valid,
bearishness is
valid.
no
probably quite is, for the long
Associated Gas & Electric issues
term;/ But
Portland Electric Power 6s 1950
For 32 Years
future the election news must
be
considered as so : much
Lincoln Building 5%s' 1963
water; over
here
on
for the immediate
the dam;
From
it looks like a case
of
NATIONAL QUOTATION BUREAU, Inc.
Established 1913
Gilbert J. Postley & Co
,
29
46 Front Street, New York 4, N.
Chicago
1
-
v
Y.
BROADWAY, NEW YORK 6, N. Y.
Direct
San Francisco
Wire
to
Chicago
:T
higher prices;: But before
off half-cocked I'd like
to point out that indications
don't show a free-for-all ori
you go
the
upside.
\
It looks Tike ja
(Continued on page 539) "/•
•
.
;■)
.Volume 162 v
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4408
Jfrscitfieid Vice-Gh.
Of Sons. Gas IftiL
ii".
H
Consolidated
poration
WIRE SERVICE
Cor-
Gas Utilities
We have installed
Hirschfield,
vice
president
director of the
com-
/
a
1
-
STRAUSS BROS.
THE ELECTION OF
since
pany
,
ifl'tegfe
mmsmtmkm104(1
32
has been
elected
A'/.
Broadway
/"
.
with connecting
newly created
'
tfifiPf
pHk jf
'?
%
solidated
We invite your
'
l
'
'
£11
H i
r s c
INC.
h field
Sami Green
partner
a
was
SALES PROMOTION
in any of these markets.
.
PLEDGER (r CO.,
Mr.
1938,
in
v
VICE PRESIDENT IN CHARGE OF
Gas
Utilities
:
•*
I AS
inquiry in over the counter securities traded
t
tion with Con-
'
RICHARD A. WRIGHT
BROS., Chicago; WHITE
BAtJM, BERN1IEIMER CO.,;
Kansas, City, Mo.
board.,
Fri°r f° ^is
a s s o c i a-
;
■
°f
■
1
V
■■■
STRAUSS
wire to
chairman
f
New York
A.--'
•
& CO., St. Louis and
office of vice
";1M
'-.A;,
the
to
ANNOUNCING
WE TAKE PLEASURE IN
since
1938
and
direct Telemeter wire to office of
a
that Norman
announces
Hugh W. Long and Company
A. M. Lam¬
port & Co,, in-
South Spring
639
INCORPORATED
Street, Los Angeles 14
estm e n t
Members Los Angeles Stock Exchange
bankers and a
i
p
o n e
firm
Norman Hirschfield
ering
the-
in
financing
construction rof- natural
gas
-
Bell
r
48 Wall
■
St., New York 5
634 S." Spring St., Los Angeles 14
-
Teletype LA 382
and
pipe
f lines in the Southwest,
;
The
company
also announces
Major Charles Friedman has
been elected a director to fill the
vacancy created by the death of
Charles F. Park.
Major Friedthan of the United States Army
that
-
;
•
We
MR.
Corps, who has, recently returned from Assam, will be re*
leased from active service.
Prior
.
•
has
entering the armed services,
he was treasurer of the Metropoli-
become
to his
i
s',v
Body Company of Bridgeport.
Conn., and had been a member of
the firm of Friedman & Co.
•
'
'
.
associated 'with
'1
•
,
AV/'O'1*"'
N'"'
Vi"
•
i
that
WE TAKE
;
H. F. SCHROEDER 8c CO.
us
!
^
"
■
K' /
p.*
^
•
-
'/tl
•
>
^
*
v
with
George R. Cooley &. Co. Inc.
100 State Street
|
N. Y.
teletype ny 1-2502
TO TRANSACT GENERAL
INVESTMENT BUSINESS
ALBANY 7, N. Y,
H.
public hearing in Chicago on Aug.
15 to determine if further con¬
trols are needed to curb speculation in rye trading.
This is, ap¬
parently, the result of recent wide
fluctuations in rye prices, but it
has a larger aspect, since it is
believed to be in line with the
recent Federal Reserve Board's
;
:
!
policy of curbing stock specujation by raising the margin re*
quirements on transactions to 75%.
It is reported that the Department
; of Agriculture, which under
the
Capper-Tincher Act is given full
authority to regulate transactions
1
~
"
A Swedish View of the
exchanges,
commodity
food
|believes it
be desirable to
may
impose additional restrictions and
to pass additional laws on com¬
modity. transactions as has already
I been done in the case of the ser
Jcurities markets. The United Press
; states that Secretary
of Agricul¬
ture Clinton P. Anderson said the
department was considering the
wisdom of "additional legislation
to provide authority for the fixing
:of margins on commodity futures
transactions
.
to
that
in
similar
manner
a
effect
in
in
the
security
as
expressed
Anderson
Secretary
concern
to
the
effect
of
"un+
bridled
speculation" on agricul1
He stated thai
the Agriculture Department will
move not only to lower specula*
tive purchasing limits, but is alsd
'considering the desirability of
additional legislation to provide
authority for the fixing of margins
ibn commodity futures transactions
tural marketing.
.
"
•
;dn
a manner
similar to that in ef¬
fect in the security markets."
A
Mr. Anderson mentioned that
(June
!
27
Trade
the
was
Chicago
directed
inargins of its
own
Board
1
on
of
fix higher
to
that the action taken by the ex¬
change fell "materially short" of
the department's wishes. -The exf
established
[
700,000r
a
bushel position limit and
.,
of the
Payments
the Retention of the Dollar-Pound Rate and Should
on
1,000,*
000 bushel daily trading limit instead of the 500,000 bushel limit
a
After the War.
to Be Continued
Changes in. the margin
quirement
and
a
re¬
maintenance
its
and
trade
Between His Majesty's Govern¬
in
London
agreement between Sweden and England was signed
March 6. The agreement is valid for a period of five
on
war,
empire,
which
belong
to
the
sterling area are [Belgian Congo,
Egypt, Eire, Iracj and Iceland)
and, hence, cannot be converted
ish
into dollars
regulating payment terms be*
the
tween
countries
two
transition
the
period
during
after
the
when a considerable Swed¬
export balance with England
may
be expected. ' Technically,
the
agreement means that the
Bank of England shall sell to the
Swedish
Riksbank
for
Swedisli
such amounts in pounds
as may be required for
crowns,
payments which persons in Swe¬
must make
den
so-called
sterling
Swedish
the
sell
shall
to persons
area,
Riksbank
Swedish
in the
and that
in
return
for
crowns
pounds sterling to the Bank of
England. In reality this meahs—i
as a Swedish export balance may
be
taken for granted—that
the
Riksbank
Swedish
claims
for
assume
from
those
exporters
which
Swedish
pound
must
correspond
export
credits
balance.
can
Thesb
only be
payments in the sterling
that
is,
mainly
th^
Revy"
(Economic
The
of
Review)
> see
the
"Chronicle" of May 17, 1945, page
'
were
crowns
exchange
between purchasing
and sales rates of exchange shall
be determined mutually by the
j
less than asked
by the agricultural department.
of
of the United
Great
Britain
arid
Northern Ireland and the Govern¬
of
ment
Turkish
the
Republic^
wishing to develop trade and fa¬
Payments
Agreement
of the
3rd
February,. 1940,(U as extended by
Notes of the 31st
join
a
general
.
"Turkish Accounts."
c
monetary
The Significance of
the
i
Agreement
30th
and
1945,
April,
tween
for
-
the
the
crown
and
the
pound
("tildsvidare");
present
selves
willing
we
to
declare
accept
our¬
pounds;
with limited possibilities for use;
.
(Continued
on page
540)
;;
Government
the
of
Kingdom shall not restrict
availability
of sterling l!on
"Turkish Accounts" for making—
(a)
Transfers to other "Turkish
Accounts";
Payments
Transfers
-iir
to
residents,] of
the sterling area; or
;
Article 2
Central
The
Bank
of
the Tur¬
countries
kish
I
;
,
>■]
to residents
of
outside the ster-
ling
area and outside Tur¬
key to the extent to which
,,
these may be sanctioned by
the
Government
of
the
-
England.
Article 3
United Kingdom under the
•
(i) On the coming into force of
the
present Agreement and, at
arrangements contemplated
,in paragraph (ii)
of this
such
times as may be necessary
thereafter, the Central Bank, act¬
ing
as
agent of the Government of
Turkish
Republic, shall pub¬
lish for its purchases and sales of
selling
sterling against Turkish
pounds and the premium which is
applied to certain operations.
sterling
rate
the
buying
and
of
(ii)
The
Contracting
shall take all
secondly,a that
The
United
the
is
hereby abrogated.
the
payments
agreement signifies mainly two
things: .first, that we shall retain
the present rate of exchange be¬
the
Sweden,
.
Article 4
(c)
March
interna*
agreement, the
stipulations
of
the
agreement
shall be the object Of revision.
tional
sterling'
(b)
the Exchanges of
"Turkish Account" at the Bank of
Should
the
Regulations in force in that area,
permitted to make to residents of
Turkey and all payments which
residents of Turkey are,
under
Exchange Control Regulations in
force
in
Turkey,
permitted to
make to residents in the sterliilg
area
shall
be
settled
through
(i)
Article 1
Anglo-Turkish Trade and
The
of
country
of
under Exchange Control
have agreed as
Swedish. Riksbank and the Bank
England.
are,
follows:
margin
In the event that either
residents
which
area
Republic (hereinafter called
"the Central Bank") shall open a
area;
"Ekonomisk
Agreement,
2165,;
margin also
of
rate
altered
used
April 2, 1945, Stockholm, Sweden)
For text of the Anglo-Swedish
Payments
between
16:90= £1:
shall not
by either government
unless the other government has
been given notice to that effect
"as long in advance as feasible."
be
in Great Britain
from.
Kingdom
and the pound
crown
effect, that is,
This
For
^Translated
of exchange
rate
the
of
London, 4th May, 1945. *
The Government
sterling shall be the one now in
th£
pound
to
The
the Swedish
Government
cilitate* payments,
gold.
or
the
and
Kingdom
United
the
Turkish Republic
commencing Jan. 1, 1945> <S>—
but can at any time be terminated and the Empire, excepting Can¬
after a three months' notice of ada and Newfoundland (the most
denunciation.
It aims primarily important countries, outside the
years,
at
in
ment
A payments
; for each suggested by the depart¬
ment,
policy of publishing the texts of the British
payments agreement the "Chronicle" prints
below the text, of the Trade and Payments Agreement between the
Continuing
bilateral
Sterling Decline, Sweden Would Loise Since to Use Its ^Blocked" Sterling
Balance^ It Would Pay Mote for British Than American Goods. Hftlds, United Kingdom and the Government of the Turkish Republic with
Protocol dated May 4, 1945.
Previous issues have contained similar
Under Such Conditions, the Agreenient Would Be Abrogated.
Concludes
agreements with Sweden, Peru and Bolivia.
the Agreement Conflicts With Bretton Woods Plan and Is Not Likely
Trade and Payments Agreement^
accord. He said
I
'change
Depends
sterling
markets."
TheAnglo-Tuikish Trades
Agreement'
and Payments Agreement
Anglo-Swedish
Agree¬
Writer Holds That Effectiveness
ment
•
*<on
F. schroeder
M. Gerber
to a United Press
dispatch from Washington on July
28, Secretary of Agriculture Clin¬
ton P. Anderson has ordered a
According
;
6, N. Y;
7-6628
telephone cortlandt
bell system
52 William Street
NEW YORK 5,
Commodity Speculation
■i
.
offices at
c,. /. *
,,
Established 1924
-
FORMATION OF
115 Broadway, New YORK
To Consider Curbs on
:
PLEASURE IN ANNOUNCING
THE
Vice. President
as
tan
•
announce
J. STANLEY DAVIS
Air
•
pleased; to
are
Parties
possible steps to en¬
as may be agreed
between them or on their behalf
between the Bank of England and
the Central Bank, all payments
sure
that, except
Article.
As opportunity offers, the
acting as agent
of the Government of the United
(ii)
Bank of England,
Kingdom,
will
endeavor
to
ar¬
at the request of the Cen¬
tral Bank, acting as agent of the
Government of the Turkish Re¬
range,
public,
the
and
other
make
with the consent of
parties, to
on
"Turkish Ac¬
interested
sterling
counts" available for current pay¬
ments to residents of
other
coun¬
tries outside the sterling area,
and,
(Continued on page 540)-
Thursday, August 2, 1945
& FINANCIAL CHRONICLE
THE COMMERCIAL
520
Dealer-Broker Investment
SPECIALISTS
in
It
Securities
Real Estate
Since
Recommendations and Literature
:
that the firms mentioned will be pleased to send
parties the following literature:
^
:
understood
is
interested
1929
Outlook — Study
of imme¬
diate
and
post-war prospects—
E. F. Hutton & Co., 61 Broadway,
Central
try
SECURITIES
Seligman, Lubetkin & Co.
?;?®'®?' '/?'/?:v®
Primary Markets in:
4's
established as one of the features of this publica¬
tion in September, 1942, to acquaint dealers and the investing public
with the unusual possibilities offered by well selected real estate
apparent and the
tions would
York Slock Exchange
Members New York Curb Exchange
Members New
the
In
buy and Sell
Show
Mortgages
,,,r
280
455
330 ?.
210
270
Hotel
Herald
4-6/48
Governor Clinton
Watching."
"Changes
■—f. 4/52 W. S.
Midtown Enterprises,
140
240
180
300
900
80
230
940
350
220
There is
?
doubt, in our opin¬
no
(as
sues
well
Bell
Teletype SF 61 & 62
present market levels as
By
investigation
upon
Successful Investment Planning
10-year record of issues with
appreciation possibilities—Secur¬
ity Adjustment Corp., 16 Court
Street, Brooklyn 2, N. Y.
—A
shown in
the table may appear very
attrac¬
through
specialists in the field who can
Conditions Re¬
supply full information.
Estate."
Harold Laski, British Labor
Point Rail¬
& Peck,
Wall Street, New York 5, N. Y.
Atlanta
of American Utilities
Johnson, who was
president
of Memphis
Natural
Gas Company from 1935 to 1943,
has
been
elected
president
of
Birger
L.
American
Utilities Serv-
T ' '
Corpora¬
*ce
which
tion,
Party Leader, Says Free En¬
Chief of the Columbia Broadcasting
Company's European staff, and broadcast over the Columbia ne+work on July 31, Professor Harold Laski, a prominent leader in
the British Labor Party as well as Professor of Political Science at
the London School of Economics, predicted that the United States
will follow Great Britain in moving toward the left, "as soon as
you face the issues of a peace- **
Party will take up where the
time economy."
In
a
radio interview by the
the New York
phone,
water "Herald-Tribune," Professor Laski
and gas com¬
stated that American capitalism,
panies in Wis- as "free enterprise," is one of the
c o n s i n,
111- most
ingenious
fallacies
that
i n o i s,
Miss¬ American business men ever put
el
uri, West over on the American public,"
Virginia and and that "free enterprise is adver¬
Florida.
Mr. tising that should be examined by
operates
tele¬
Johnson
for
a
president
the
was
number
of years
viceo f
invest¬
ment
firm
banking
of P.
Chapman
Birger L. Johnson
W.
&
Co.
While Mr. Johnson's headquar¬
ters
will
be
continue
to
in
Chicago, he will
his New
maintain
York office.
•
(
With Central Republic Co.
CHICAGO,
Fredbloom
public
is
with
Company,
Salle Street.
Conrad
ILL.—A
Central
209
South
.
®
terprise "Packed Up in the Nineties, When U. S. Reached
the Last Frontier" and That Same Causes Which Brought
About Labor Victory in Britain Are At Work Here. >
Birger Johnson Pres.
Re¬
La
to
According
the Federal Trade
Commission."
"Herald-
the
to
According
does not foresee any conflict be¬
tween Labor Britain and
America.
"The
capitalist
same causes
which
brought about the Labor victory
in Britain are at work with you,"
he continued, "and with the same
effects.
As
central
issues
soon
as
of
you
face the
peace-time
economy, the logic of history will
make you move in our direction."
He described the Labor Party vic¬
a
part of a
world wide revolution, in which
all liberated countries in all con¬
tinents will participate.
tory
in
England
Professor
ford
as
Laski, like Sir Staf¬
Cripps,
stated
American New Deal stopped,
the
Labor
with
projects as the Tennessee
Authority, and like Sir
such
Valley
Stafford, he denied that the Labor
Party is revolutionist in its doc¬
;
trines.
"We
West
&
common—
cir¬
change Place, New York 5, N. Y.
Also available is a memoran¬
dum on Gerber Products.
Corporation—Descrip¬
—
Buckley
Brothers,
1529
Walnut
Street,
Philadelphia 2, Pennsylvania.
Also available are memoranda
Light
Western
on
&
Telephone
and Wellman Engineering Corp.
;
I
3V2S of 1947—
California Electric Power Com¬
pany—
Detailed study — Walston,
& Goodwin, 265 Mont¬
Hoffman
gomery
Street,
4,
San Francisco
C a lif. "C;.
^
.r'
Also
available
^
;
:^v?
descriptive
a
Carey
Manu¬
Chicago, Milwaukee, St.
Paul &
circular
of
process
democratic
government to reorganize the cen¬
tral principles of our civilization.
chance
"We think we have got a
on
Philip
on
Transporta¬
Monthly Comment on
tion Statistics.
not
expropriators
everybody's property.
We
going to touch any little
savings.
v.
"We
going
are
We
government;
ardent
in
a
of
aren't
man's
straight¬
forward, orderly fashion to social¬
ize, stage by stage, the ownership
of
the
instruments
vital
duction
on
a
nends
the
on.
life
In
of
And
do it through
pro¬
carefully considered
plan of priority,
what
of
because that is
this nation dewe
are
attractive possibilities
appreciation in these
on
price
Cohon &
two industrials—Morris
Broadway, New York 4,
Co., 42
N. Y.
going to
Franklin Railway Supply Co.—
Analysis—W. J. Banigan & Co., 50
Broadway, New York 4, N. Y.
General Industries Co.—Recent
report — Mercier, McDowell
&
Dolphyn, Buhl Building, Detroit
26, Mich.
Also available
report on Na*
a
tional Stamping Co.
Rubber
Company—
Statistical memorandum on
post¬
outlook—Caswell & Co., 320
war
South
Salle
La
3, 111.
Street,
Chicago
:§?#*
'
'
;
in¬
teresting possibilities—Hoit, Rose
& Troster, 74 Trinity Place, New
York 6, N; Y.
Corp.—Circular
Hajoca
on
Also available is a memorandum
American
on
Bantam
analysis
new
of
and
Car
Panama
a
Coca-
Cola.
Co.—analytical study
—Kneeland & Co., Board of
Trad?
Building, Chicago 4, 111.
Also available a detailed report
United Brick & Tile Company.
on
Kingan Company — Descriptive
de Willers & Co.,
circular—C. E.
New York 5, N. Y.
memorandum
Macfadden
Pub.
Inc.
arid
120 Broadway,
Cleveland-Cliffs Iron Company
—Memorandum
Maxwell,
comment—
& Co., 647
Los Angeles
and
Marshall
South Spring Street,
14, Calif.
doing it by common consent
and
through the mechanism of
are
for
Interstate
reorganization
developments—Vilas & Hickey, 49
Wall Street, New York 5, N. Y.
Also available a memo of ICC
Pacific—Memo
:
■=
Also available is a
on
Sterling Engine.
Lumber
Co.—de¬
dealers only—
Comstock & Co., 231 South La
Salle Street, Chicago 4, 111.
?"
Also available are copies of the
Long
Bell
tailed brochure for
of
parliamentary
Corporation and
Co.—
facturing Co.
revolutionists," he said,
sense that we want the
rational
Elk Horn Coal
Gro-Cord
Boston Terminal
\nalytical report describing reor¬
ganization status and proposed
plan—Greene
&
Co., 37 Wall
Street, New York 5, N. Y.
are
the
"in
said he
Tribune" Professor Laski
Corp.
descriptive circular for dealers
only—Bennett,
Spanier & Co.,
Inc., 105 South La Salle St., Chi¬
cago 3, 111.
60 Beaver
at the
others)
as
Letter—H. Hentz & Co.,
St., New York 4, N. Y.
nightly
general real estate
conditions and that the above is¬
view of better
Says 0. S. WilljTurn to Left
Montgomery St., San Francisco 4
???;?;•??'";■ ■
tion.
Report
Comment —Dis¬
cussion of current events affecting
market—also available the Fort¬
Market
road—Circular—Adams
J. S. Strauss & Co.
Ltd.,
Co.,
including a reprint of an article
on
prospects for those desiring
an
interesting speculative situa¬
Lawrence Portland Cement
'
Stock
*
63
155
and common
preferred
on
diana.
ion, that well chosen real estate
securities merit consideration in
Bear
About
Guide—Quota¬
820
3-5s '48_
Sq.
tive
Brought
memorandum
a
Milling
Carlos
Eastern
public utility stocks—G, A. Saxton & Co., Inc., 70 Pine Street,
New York 5, N. Y.
Also available is a: study of
Public Service Company of In¬
700
Park Ave. 4-5s, '46
•Called at par.
Strength."
acting to Benefit of Real
5/64 W. S.
500
80
5s,
370 7th Ave. 4'/2s
.
War and Economic
Inc.
650
190
80
2
City Hotels."
"An Inflation Hedge, Hotel Se¬
Bonds
250
140
pros¬
...
Indicate
Below True In¬
Building
160
1947Hotel Drake 3-5s, '53
Mortgage
"Office
65th 3-5s, '50_
tions
655
Hotel Taft
Valuations
curities Show Market
Y.
&
Preferred Stock
730
310
Allerton N.Y. 3-6s,55
Possibilities."
?,:
"Post-War Future of New York
2/56
195
300
GO E.
vestment
Broadway Motors BIdg.
115
available
San
tive memorandum
765
5%s
Corp.
list—Herbert
Pine Street,
30
.New York 5, N.
George
4s, 1950
Sherneth
Liquidation
Certificates Offer Attractive In¬
V
St.
355
180
Co.,
Stern
E.
*
95 ft
45
1953
Clinton 2s, '52_
Gov.
t
"First
Broadway Barclay, Inc.
Long Dividend
Records—Tabulated
1,000
'
10 E. 40th 5s,
case
"Assessed
Ambassador Hotel (L. A.)
Exchange Com¬
760
Hotel Lexington Uts,
post-war
pects—F. H. Roller & Co., Inc.,
Ill Broadway, New York 6. N. Y.
Dunningcolor—Descriptive
Stocks With
mon
825
105
Bonds Selling Far
OFFERINGS WANTED —
N. Y.'
New York Curb
.
bond
since 1943
in 1943
Issue—
trend.";/?
1-1942
5/50 W. S.
'
London Ter. 3-5s, *52
trinsic Values."
—
>r •
apprec. per $1,000
is in excess of 100%
for 1943.
Some of the headlines for 1943
based on the contents of the col¬
umn were as follows:
"Markets Show Continued Up¬
Dlgby 4-2*70
N.Y. 6
-
Dollar
Company—Analysis
and
cular—J. F. Reilly & Co., 40 Ex¬
Pres. bid
Dollar
Savoy Plaza 3-6s, '56
every
&IEGEL & CO.
Teletype NY
:
1
.•
apprec.
of the amount
;
•-
that the 1943 ap¬
preciation may be shown and
more important the additional ap¬
preciation since 1943, which in
REAL ESTATE BONDS
New York 5,
City Rental Rates Be
Increased."
issues, in order
PRUDENCE AND
39 Broadway,
condition
Broadway,
120
Meeds,
&
Bissell
for
York
New
requote the headlines and to give
a new tabulation using the
same
and
Increase in Dollar
of Sales."
Office Space in
Large
"Demand
Bank Stocks—Quar¬
terly comparison and analysis of
19 New. York Bank Stocks—Laird,
Volume and Number
Cross
The
of
Dunningcolor
,4
,
New York
tate
this time to
at
interest
of
still
Certificate*
Sound Co.
"Figures Compiled by Real Es¬
Board of New York, Inc.,
attention to some of
articles
during 1943 and also showed a
tabulation showing the dollar ap¬
preciation during 1943 of certain
issues
mentioned. We believe it
NY 1-953
TITLE CO.
have
30, 1943 issue, the^
Street, Brook¬
Co., 189 Montague
lyn 2, N. Y. '
Also a brief summary of Howe
condi¬
possible effect these factors and improved
upon the market value of these securities.
headlines of various
the
economic
oh
current
outlook—Josephthal &
Memo
—
Dec.
column drew
Dlgby 4-4950
PL.,N.Y.
Bell Teletype
Inflation
show various factors as they became
has attempted to
study—Brailsford & Co., 208
La Salle
Street, Chicago
South
Also
6, N. Y.
This column,
SHASKAN & CO.
40 EXCHANGE
geared to the news—Dresser &
Escher, 111 Broadway, New York
Public
4, 111.
on
securities,
*
comment
of
page
Central
and
Utility Corp. Income 5%s of 3952
—A
Building, New Orleans 12, La.
Grist —A
Tabulation
Remarkable Appreciation Shown By
In This Article
Hotel, 4's
Beacon
of New Orleans—Book¬
let—Scharff & Jones, Inc., Whit¬
City
the
Real Estate Securities
Club2-5's
the State of
Parishes and
Its
and
Louisiana
HAnover 2-2100
-
ney
-
N.Y. Athletic
York 4
on
Consolidated Electric & Gas Co.
-
Bond Structures of
Association
York Security Dealers
Broad Street, New
41
7th Ave. Ws
(Park Central Hotel)
870
-:/?<,
circulars
are
Steel, Kingan &
&
Riverside Cement.
preferred
4K's
165 Broadway,
6, N. Y.
Iron
and
Co.
Incorporated
Members New
Hotel St. George,
New York
available
Also
Agricultural Equipment Indus¬
REAL ESTATE
Consolidated
Class
A—Bulletin
Corp.
recent de¬
Cement
on
velopments—Lerner
& Co.,
Post
Office
Square, Boston
Mass.
:> •?:/?■' 'Y/:.:-A???: ®??:'
10
9,
would be taken first
nationalization program,
Professor Laski said:
"The Bank
what
in
of
steps
the
England is going to be
social¬
recently amended Illinois
ties Act.
P.
R.
Securi¬
.
Mallory
&
Co.,
Inc.—
discussion — Steiner,
Rouse
& Co.,
25 Broad Street,
New York 4, N. Y.
.
"
Analytical
direction of invest¬
ment wiil be planned as part of a
Midland Realization and Mid¬
process of industrial reorganiza¬ land
Utilities
Common—Memo¬
tion.
And
mines
and electric randum—Doyle, O'Connor & Co.,
power, then iron and steel and
(Continued on page 539)
ized, and the
Parliament."
reply to the question as to transport."
•
:
.
•v*
Volume 162
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4408
ADVERTISEMENT
;
f ALL
NOTE—From time to time, in
INVITED
INQUIRIES
.
there will appear an
S.~7-V
issues
this space,
article which we hope
will be of interest to our fellow Americans.
This is number ninety-eight of a series.
SCHENLEY DISTILLERS CORP., NEW YORK
SECURITIES
HAWAIIAN
Bombardier!
Kaiser s. Go.
<1Announcing
MEMBERS
EXCHANGE
NEW YORK STOCK
YORK
NEW
2G
Some years
RUSS
SAN
S
of
BUILDING
1500
EXCHANGE
SAN FRANCISCO STOCK
STREET
PINE
NEW YORK
ACT I:
EXCHANGE
CURB
FRANCISCO
A
book
About
a
Ministers
and
(Continued from page 515)
vN
Governments,
re- ■
sponsible to our House of Commons, has now come for the first
time in our history into the hands
social and industrial insurance
the
the
both
But
war.
democ¬
our
the
that
believes
it
Offering Price $5
racies have
Election
the rival parties.
There
point upon which everyone
agreed.
That Great Britain
one
is
should
concentrate
effort
able
successful
the
upon
;
were
over
how
and
domestic problems
our
we
shall
dif-
the
face
/ ficult period that lies ahead of us.
From many Labor platforms ad¬
miration was expressed for Mr.
Churchill's fine leadership through
the war years.
But tbpre was the
very
strongest
opposition
the
to
Conservative Party's program for
the future.
Labor Party's Program
Labor
forward a limited
program to be carried out during
the next five years.
We sought
put
to plan the orderly de¬
velopment of the country's re¬
sources; bringing some few of the
more
important
industries and
services under national ownership,
while
retaining
a
system
of
power
and controlled private
enterprise for the rest.
Many ad¬
miring references were made to
your great T.V.A. experiment as a
pattern of what could be achieved
planned
T
fwniSS
Jhnr par/? nt? S mL
rnmnAtfcnStt
compensation
whose
for
interests
in
H
vo+w
*3
A
person
any
taken
were
over
by the State, whether in industry,
land or finance.
During the war
great, volume of savings has
been built up by the small men in
our country and
we are particu¬
larly anxious to see that these
savings are safeguarded. For that
reason, apart from all others; it
will
be
necessary
to maintain
prices and other controls so as
a
to avoid the losses
from
7
■
•
7
1',
t
„*
!'
'
share
per
'77;
;
v
jkV
x
'V.YL
t''7
*:
*"
»,
T
,
'
J1"
v
V«
v
v
'
11
'
1
'
?
national
-
f
*
3'
'
/
■*'. b-
-
*
,
'-•
•
'
-•
,
►
•
series
i"'**
'
"♦
,
Our
idea
greater degree
is
of
to
eco-
homic
liberty for the common
people,. though this means some
restraint upon the financial and
industrial
section
wealth..
plish
freedom
of
hitherto
our
enjoyed
State
of
the
this
in
small
population who
privileges and
We shall seek to
program by a
accom¬
our: first five-year
wise combination of
ownership
and
private
en¬
terprise with effective control and
planning of
our
national
resources.
In this way the Labor Party be¬
lieves that it can make our democ¬
racy more
effective and
more
embracing in its
all-
scope, and hopes
by these means to
raise the general standard of liv¬
ing throughout the country. This
to
be
sense
for
an
The
British
able
•
,*
3
'
»
..
'
■
/
'
'
\
-
*V
}
\*
,
*'
f
c
districts, hitherto
rural
of
con¬
have
strength
ative
elected
also
Labor members. In the result Labor has keen given a very large
majority in the House of Commons
i which should insure it a long
' f
_rm
term ot oitlCe'
International Policy
V
For many years now
the Labor
pioneer of in¬
ternational
agreements such as
that recently worked out at San
Francisco, and so
quickly ap¬
proved by the American Senate.
Party has
been
a
For
we
believe
that
happen to live.
adhere
the
to
full
But
to
who
those
the
we
also
strong
sentiment of the British people
every
the
political view that
essential
foundations
one
for
of
of
'
634
So.
Spring
a
10 Post Office Square
destiny
to
fulfill
under
own
God's
guidance, and each has its own
peculiar contribution to make to
the
development of peace and
prosperity throughout the world.
But, though our contributions are
separate and distinct, they can
only have their full value if they
are given in mutual understanding
and cooperation.
Democrat or Republican, Labor
or
Conservative,
as
lieutenant
graduated from
given by
was
advertising
a
who
men
clubbed
together,
during
this past year, at the suggestion
of
our
agency
friend, for tho
7
of sending. additional
purpose
advertising material, following
the
S. E. Firms
Group
fact
the
to
that
partner in
liaisoin
between the Association and his
firm.
the
in
a
major problem in this
industries, it is indi¬
positions '
the Association of Stock
Exchange Firms, in advices of
July 25 to member firms of the
nationwide
of Stock
Exchange firms has been formed
of
committee
"It
"a
that
Association,
partners
for the purpose of assisting mem¬
ber firms in handling the prob¬
to
returned
organization.
to
provide
who has, left.
everybody
a job for the
Many veterans
reemploy¬
ment with their old firms.
It is
immediate
find
will
lems
which
may
arise
with the
return of veterans who were
"First—To
ber
firm
assist
finding
in
satisfactory reemployment in the
'Street' by establishing a
Bureau for jobs, and "Second—To
Clearing
-
give
firm
as
ture
to
soon
the proper clear¬
as
machinery has been set up.
committee will, at such fu¬
time, also ask member firms
ing
The
list
with
the
Clearing
Bureau
jobs which may be available.
at the New York
or
Institute of Fi¬
elsewhere. But activities
will
for
the Committee on Veteran Place¬
the
former
Training,
and
W.' W.
Peake, Secretary of the Associa¬
tion of Stock
Exchange Firms,
further
states:
future for
our
7777-7
own
people and for
employees
of
change firms.
77:
we
men
principles which inspire
our
our
shall
lad?'
"NO!"
MARK MERIT
of SCHENLEY DISTILLERS CORP.
FREE
—
Send
postcard
a
or
letter to
Schenley Distillers Corp. ,350 Fifth A ve. ,i;
Y. 1, N. Y., and you will receive,
a booklet
containing reprints of earlier
articles on various subjects in this series,
N.
"If you
furnish
will be good enough to
with
us
requested
proceed
arise
of
your
in
an
whatever
solve
the
for
New
firms."
information
the
committee, wiU
earnest effort to
problems]
returning
York
Stock
■'Iv]"''->
may
veterans
Exchange
7-]'7:r7-:7:7:
Sides, Morse & Co.
{/
Opens in Boston, Mass.
BOSTON, MASS.—Sides, Morse
Ex¬
&
-,,7.
offices
Regional Gover¬
make
an
effort to
there is a definite need for
tian
civilization.
this
stop
answers:
Co.,
has
in
been
the Sears
formed
with
Building, to
in¬
Officers are
William Randolph Sides, Presi¬
establish local committee to work
dent; Kenneth Morse, Treasurer;
along these lines.
Inasmuch as
and Raymond
Whipple Maloon,
"Through
nors
tional
the
the
present necessarily
be limited in general to assisting
teeming millions of the
world, determined to make true
in action those deep-seated Chris¬
all
anybody
Chorus
ing the proper educational classes
announcement, made
by
William K. Beckers, Chairman of
and
As¬
sistance will be offered in select¬
nance
The
ment
Can
mind
in advertising.
for¬
former mem¬
employees
of the human
necessary
have al¬
jobs in your
that
realized
is
wishes
man
a
young
advertising job he deserves. 7.
7
reactions
"3. How many veterans
ready
our
•—so
formerly
they
held.
cated by
.
He has learned much about the
other
in
as
.
little
happy ending—- ;
lieutenant is
discharged from service and gets ]
when
numbers
become
*
this
act—in
It will have
a
"2. The number of men in each
and the question^ firm who have been or are en¬
of proper reemployment of the i
rolled in government service, and
discharged veteran will shortly what
large
fourth
drama, remains to be written.
of
name
each firm who will act as
ser¬
"more,
for
request
(Coming)
:
The
members:
"1. The
returning
daily
are
ACT IV
following; information^ from
our
Employed by Members
Incident
in this survey requests
move
the
lad's
more."
as a
first
to Assist Veterans
vicemen
therefore,
"The committee,
training of veterans."
nations has its
a
in
"University of Captivity."
number of
St.
mocracies.
our
Waldorf
young
The luncheon
y,
boston 9
_
Each of
...
f
14
firms infor¬
mation
on
questions connected
with the relocation and technical
and
the
had just
had
Angeles
peaceful
world
must be a close and understanding
friendship between l our two de¬
prosperous
our
the
4
' V-
Servicing Points
los
have common interests. A number
sidered the backbone of Conserv¬
at
honor of
Broadway, New York 5, N. Y.
-*
.
.
thrown
their allegiance to the Con¬
servative Party and have sup¬
ported the Labor Party, realizing
that workers by hand and brain
Europe! Prisoners freed
who
120
point
over
,
happy day arrived. Victory
luncheon
forces.
first' time
year ago,
Today, this recorder attended
NATIONAL SECURITIES & RESEARCH CORPORATION
people have given a
have
the
a
incident.)
ACT III:
particularly the case so far as the
younger generation is concerned
including
those
in
the
armed
for
he
book,
returned home!
emotional exhibition.
Americans and
higher standard will be reflected Britishers let us work1 together
in more generous provisions for for a
fuller, better and happier
this
in
It was in
to be observed
is that very many members of the
so-called middle class, the pro¬
fessional
and
salaried workers,
fate;
informative
this column about
Prospectus upon request
spoken decisively in favor of the
Labor Party's program.
This is
have
further
The
well-considered opinion and
Another
his
material. (We wrote a piece in
ACT II:
markedly more seriousminded than any previous election
of which I have had experience.
7v
man.
bemoaning
Con¬
was
may
fundamental
a
no
It
studying ad¬
wrote the author of the
'
•
,
Offering Price $5 per share
interesting and
put forward.
prison library. Be¬
prisoner of war, continu¬
advertising
time
Speculative
by the people to the rival
programs
happily found a
agency friend's
Our "hero" did not spend his
noteworthy features of our elec¬
tion was the thoughtful attention
given
over
ing his studies from a text book
written by a seasoned, practical
7;;]7'77;
•
Opinions
sidered
One of the most
a
His
entering the armed forces
was, a
'3:
.7
possible, however, that some will
wish new jobs not available in
merly associated with such firms. their former firm. Such a man
live by the work of their brains
The objective of the committee, may list his requirements with
or
hands have very similar in¬
the committee through his former
that would flow terests in whatever country they says the announcement, is twofold:
inflation.
achieve
Well
of
Result
Is
he
our
this lad had been
on
avail¬
its
all
completion of the war ? against
Japan.
The principal differences
'•
fore
series
laws.
is
Selected
in
was
camp.
vertising in college. And here ho
to organize
ward by
of
book in the
national
necessary
changes must be brought about by
a common purpose, so
the lives of our people democratic methods. It will be for
our House of Commons to decide
as to give them all those advan¬
tages and benefits that science and upon the speed and the thorough¬
the bounty of nature have made ness of the change. We are de¬
termined that the House of Com¬
possible." v,;
**mons shall be the sovereign body
Our general
election was not
decided on personalities or past in our country, controlling and
records of achievement, hut upon regulating on behalf of the people
the policies for the future put for¬ every change that is made in our
prison
wire"
copy
majority Labor Government people.
The British Labor Party has
a Labor Prime Minister
who, as deputy Prime Minister, always been and is today a social
did such splendid service during democratic party, that is to say
lieutenant,
who
territory. While "behind
enemy
by
he received
ago
young
plane had been shot down
and
1 pensions, and also in better health
services, education, housing and
repreational opportunities for the
of a
led
a
bombardier,
German
NATIONAL SECURITIES SERIES
;
serve us wrote
ADVERTISING.
year
letter from
a
77;-]7i>;7v/:-:
advertising
on
a
1-
.
the president
agencies which
a
■
ago
the
of
one
back to proper
us
who
on
addi¬
employees, it should be pos¬
our desire to bring
sible to realize
have
conduct
a
business in general
vestment securities.
Assistant Treasurer.
Mr. Sides and
Mr. Maloori were
reemployment the formerly officers of Hale, Waters
& Co., Inc.; Mr. Morse was an
been fighting for
ail fronts.
;;
;-7
officer of H. P. Wood
& Co.
:
.
THE
522
COMMERCIAL & FINANCIAL
Thursday, August 2, 1945
CHRONICLE
—We Maintain Active Markets In—
Trading Market in
CHICAGO SO. SHORE & SO. BEND RR. Com.
CO.
SlIILLlNGLAW, B0LGER &
Nil Enamel
DEEP ROCK OIL CORP
CHICAGO STOCK
EXCHANGE
*
''
CHICAGO
*
BOARD OF TRADE
,
INTERSTATE BAKERIES CORP. Pfd.
'j V
1 ' ' ' '
* '
* Sl
*'
' M
,k
\ ,sS »
■
H. M.
C. L.
Teletype CG273
How Hie War Hollar Was
The country's
CARTER H.CORBREY &C0.
the one-front war
Association
Dealers
Member, National
'
of Securities
130 SOUTH
Treasury statements.
,
1'
,v
4
From a monthly cost of $4,100,000,000 in 1942 and $6,800,000,000
LA SALLE STREET, CHICAGO 3
Pacific Coast
—
1943, the bill increased to $7,-""
400,000,000 for each of the twelve
months of 1944.
As a result of
in
Teletype CG 1070
Telephone State 5850
UNDERWRITERS
elected
000,000,000 for the between-war-
R.
debt,
DISTRIBUTION
Post Mortem
LOS ANGELES 14
650 S. Spring St.
Trinity 3908
135 La Salle St.
CG 99
Fred.W.FairmanCo.|
voting
Members
Chicago
'
Company
V ;-} [\'
'
•-
?!:'<'
-i•«'
OFFER
■
Participation in Northern Indiana Pub¬
lic Service Company at a price earn¬
Write for
7.6 to 6.82
from
ratio of
ings
Distribution.
and
Values
CHICAGO
times.
discussion of
M-3, a
4, ILLINOIS
& Wire,
Com.
Co., Com.
Globe Steel Tubes Co., Com.
*Oak Mfg*» Co., Com. ^ v
^Wells-Gardner & Co., Com.
^Gibson Refrigerator
'Prospectus Available on
Request.
Paul H.Davis &Co.
Established
Members
1916
Exchanges
Board of Trade
Principal Stock
Chicago
10 So. La Salle
St., Chicago 3
Teletype CG 405
Tel. Franklin 8622
Indianapolis, Ind.
-
proposed amendments under Article IX
very salutary effect.
own
Rockford, III.
'
up
remaining 18 cents is of especial
interest, WPB said.
cents,
securities'
field by reason of the adoption of these aniendments has!
taken on a professional tinge.
That is the bunk. The
word or phrase was conveniently, coined for the purpose of i
(
the by-laws;
not yet in full force and effect*
Exchange Commission has a
formally, it may be said that
course,
we
8 cents was spent
lease appro¬
priations, 5 cents for the United
Of this sum,
from
lend
specific
ample grounds exist for the ex¬
particularly amongst other things,
because of official action in attempting to influence the re¬
sult, we would be amazed if the Securities and Exchange
Commission did declare these new by-laws inoperative.
Commission and
States Maritime
Administration, and
War Shipping
Reconstruction Fi¬
Corporation and its af¬
filiates.^ Only 2 cents out of each
wartime tax dollar was spent for
'
In
our
humble
COMSTOCK & CO.
CHICAGO 4
Dearborn 1501
Teletype CG 257
opinion, the by-laws are as much a prod¬
they are of the NASD.
We believe that
Maj. J. Ctanley Davis
nance
of
activities
war
the
other Gov¬
State Street, Albany* Major .Davis
served in both World Wars and. '
formerly
was
a partner
of Hemp¬
ernment
agencies, which include
the
Department of Agriculture,
Federal Security Agency, Federal
Works Agency, National Housing
hill, Noyes & Co., until 1930. More
recently, he was an officer and
director of several important up- .
state banks and industrial corpo- ;
Agency. Department of the Treas¬
ury, Aid to China, payments for
United Nations Relief and
Re¬
lief and Rehabilitation Adminis¬
rations.
f\
Mn Alexander With
tration, Department of Commerce,
Department of
War
Justice,
Mobilization
Office of
Reconver¬
and
Pledger & Company
Firm Has Wire to East 1
sion, Panama Canal, Smaller War
Plants
Office
Executive
Corporation,
of
the
includes WPB)
other
.
believe that
total of 82 cents by the
The division of the
3 cents for the
merchants. "Where they act'
as principal they have
soni^thing to sell, .Just .: as do mer- J
chants in every, other field.
They likewise; buy with an
eye to making a profit.
The members of the public who
purchase from them have the same motive in mind. There
is nothing particularly alluring about the term "professional
tinge."
It is being used only to increase the Behemoth of
regulation which now bestrides the securities industry.
To apply to a merchant the term "professional" does
not change his activities one iota.
He is what he is and
name calling effects no alteration.
We believe this to be
absolutely true in the securities industry.
Dealers in securities are;
Of
or a
two services.
told, rather jubilantly, that the
now
uct of the SEC as
231 So. La Salle St.
The War Depart¬
follows:
as
spends 53 cents out of each
dollar and the Navy another 29
.
Page Brochure
Second Edition
war
President
(which
and miscellaneous
Government
CALIF.—John
Alexander has
become assbci- :
ated with Pledger
& Co., Inc., 639;
H.
en¬
was
gaged in war activities.
Knighton in Roanoke
VA.—P ercy
P.
Knighton is engaging in a secur¬
ities business from offices at
Third Street,
Spring St. Mr. Alexander >
formerly an officer of Cook,
and prior thereto;
Kn
Pledger & Co. has installed a
direct wire to Strauss Bros, in;
New
York,
connecting
with
Strauss Bros., Chicago; White &
Co., St. Louis, and Baum, Bern-J
.Miller
was
ROANOKE,
:
LOS ANGELES,
South
agencies
ercise of that veto power,
Long-Bell Lumber
Four
for
their duty.
We are
Whilst
Company
spent
been
ment
veto power.
'
has
preparation and the conduct of the
war
from July,
1940 to March,
1945
has been made by WPB's
statisticians.
The dollar divides
even
dealing with registration are
because the Securities and
AVAILABLE NOW
taxpayer's
study of how the
A
dollar
plain
attitude is that the Governors have a
Major J. Stanley Davis has been
a vice-president of George
Cooley & Co., Inc., of 52 WiU
liam Street, New York and 10ft
1944.
would'
ensnaring the non-analytical mind.
*Burton-Dixie Corp., Com.
Steel
petition signed by such
A
for an affirmative by-law directing all of
adopt a hands-off policy, in connection with j
in the absence of such petition. However, since
they choose to disregard it this is one way, should such an
amendment be passed, of forcing them to a realization of
^
Centra2
a
duty
Midland Utilities Company
Midland Realization
h:*}
association.-
the
on
Our
Stocks of:
Common
The
have
Stock Exchange
Board of Trade
Chicago
,
of
members asking
the officials to
_J
period, Dec. 31, 1930, amounted to
$230,-300,000,000 as of the end of
(Continued from page 515)
members
SINCE 19081
—
ia|. Bavis Vlce-Pres.
Of Geo. ft, Gooley Go.
expenditures,
the public
which reached a high of
$26,600,000,000 on Aug. 31, 1919,
for the last war, and a low of $16,these
MARKET
SECONDARY
Spent
victorious progress first in the two-front and now
has been paced day by day and month by month
released
For
State 6502
Minneapolis
ever-increasing cost of those successes, according to figures
by the War Production Board, based on Department of
by the
Wholesale Distributors
CHICAGO 3
x/>'
'
Pittsburgh
Philadelphia
New York
INVESTMENT SECURITIES
Middle West
»'»
Tele. CG 271
6960
Tel. Randolph
UNDERWRITERS and DISTRIBUTORS
V
Street, Chicago 3
Telephone State 8711
South La Salle Street
CHICAGO 3
120
Incorporated
La Salle
So.
135
V
«
Byllesby and Company
★
Schmidt & Co.
Established 1922
Common
MEMBERS
1223
South West.
&
Co.,
with Akin-Lambert Co.
heimer
&
Co., Kansas City.
representatives of both organizations have conferred With
respect to them.
We believe that their contents, if not ffS'TVe fjn(i ourselves engaged in a constant crusade to,--:>
preserve our American way of life.
Of this the freedoms v
their exact phraseology, were the product of the meshed
activities of both organizations.
We believe further, that including of course, the freedom of trade, constitute com¬
;
I
!
it is a duty of the representatives of both organizations to ponent parts.
make known to the public, and particularly to the member¬
Daily our freedoms seem to die a little and a trans- ship of the NASD, the number of conferences on this sub¬ fusion of miliant vigilance becomes most imperative.
There will always be those who, beguiled by empty 1
ject matter that actually took place and the time and place
and subject matter of each of these conferences.
promises which they think may lead to personal advantage,.
We go further.
We believe that minutes should be kept will be blind to the overall welfare of all the people.
.
Federally Insured
Certificates
To Yield
...
vitally affect the public and
should be made
AGGREGATING $25,000,000.00
of such conferences which
been
purchased
thru
us
by
Companies, Trust Departments,
Estates, Pensions.
the securities field and that such minutes
sometimes
public property.
field have
Have
so
Trust
Call this function of the SEC
on
NASD by-laws a right
Special incursions into our liberties which we may
believe have only application to the securities
a
way
of getting out
"
right of appeal, the effect re¬
The SEC will not annihilate a creature
of veto, a right of review, or a
Savings & Loan
Represented—
located in every section of the Coun¬
try, offer Liquidity, Insured safety of
Principal, complete
Federally
Insured
Associations about 400
■
.
_
„
-
freedom from mar-
Fl M ANCI ALket losses—
""""^/Development Co.
105 SO. LA SALLE ST..
CHICAGO 3
mains the
same.
of hand and gradually at-,,,
^ .
the ideal of aa
the press.
taching themselves to industry in general.
Not the mere expedience of today but
all-time freedom should be the purpose of
whomsoever it may
fight oppression, not only in its:
of the member firms who voted
for these amendments were by their set-up, affected.
How direct form but in its more insidious forms wherein there
is a pretension of protecting the public welfare, when the*
many of them employed salesmen, traders, etc., etc.
net result is a curbing of public freedom and the under-':;
If the truth were known, isn't it just possible that this
mining of the American philosophy of government,
..
may be a case of the tail swinging the cat?
that it had
a
hand in creating.
Wherever
affect,
We wonder how many
,
«
t
»
►
»
»
•
4. ,•
f
«
>
j
>
•
♦
*•#*»*
«' #
,
,
*
»
J
.
t
»
»
*: A
or
r
t
<
■
*
r'w-1
e t
i
*■
*
m
*
i
we
we
find it, regardless of
shall continue to
[Volume 162
THE COMMERCIAL & FINANCIAL CHRONICLE
..Number 4408
We have
prepared
memorandum
a
525
\
on
We have a
MIDLAND REALIZATION
#
MIDLAND UTILITIES COMMON
|;
continuing, interest in the following:
STROMBERG
American Barge Lines Co. Common
CARLSON
American Service Co. $3.00 Part. Pfd.
Copies available upon request
Anheuser Busch Inc.
Capital
COMPANY
Bausch and Lomb Optical Co. Common
Consolidated Gas Util.
DOYLE, O'CONNOR & (CO,
INCORPORATED'
£
•
'
•
Dearborn 9600
Request
on
KITCHEN & CO.
New Jefferson Hotel Co. 4-6% Bonds
; (ST. LOUIS) ,
.
.
Textron Inc. Common and Warrants
CG 1200
Teletype:
>
Memorandum
Mastic-Asphalt Co. Common
135 SOUTH LA SALLE STREET
Telephone:
Corp. Common
Hydraulic Press Mfg. Co. Common
^
,
135 South La Salle Street
Chicago 3, III.
Trailmobile Co. Common
Tele. CG 573
Tel. STAte 4950
Causes of the Ball Market
Western
Light & Telephone Co. Common
^(Continued from page
of wealth a bull market in values
would
to have
seem
mental
cause
economic
as
its funda¬
well, known
those
price making factors-
scarcity of things to buy and an
supply of
excess
money.
25% in gold
ratio requirements to
against note- issue and deposits.
This inflation in the currency
and bank deposits has
kept money
abundant and cheap. The destruc¬
tion of wealth plus the increase of
ii
,
The necessary productive effort
level in
our
has
duction
to
the
highest
history. The war pro¬
had .a ready market
buyer at cost plus a profit.
one
Many lines of civilian goods
have
duction
been
terial
In
in
pro¬
curtailed
and
General Telephone Pfd.
in; order
addition
the
this
to
of
tactics
unprece¬
.
'»sible,.
and
schooled
money ;
are
Eu¬
inflation in
countries have found the
ropean
American markets where inflation
scarcity in many necessary
civilian goods is the, largest ever
known in our markets,
and its consequences are
less un¬
derstood, an open invitation for
the exchange of cheap money for
I'■ While taxes have taken a large;
future claims to productive re¬
part of the earnings from corpora¬
sources w^ich will have a scarcity
tions and individuals still the na¬
value for some years to come.
tional income has broken all rec¬
ords, and the savings of individ¬
ceeded
corporations have far
previous period
Outlook for Civilian Production
ex¬
and
of
any
from
one
hundred to one hundred
and fifty
billion dollars.
Corporate > Profits
The delaying processes of re¬
conversion, tooling up for produc¬
tion and supplying the American
markets with goods demanded by
prosperity known to us.' The esti¬
mated savings of individuals vary
:
the
people promise to maintain
*. Money and Credit Inflation
scarcity in these markets, for many
years.
It is estimated by compe¬
.Taxation has removed a portion
tent authority that it will
take
of the war income as indicated by
from seven to ten years to supply
the
collections
exceeding forty
the demand for motor cars alone.
billion dollars in the past year. In
After World War I,;; we had a
spite of these taxes, however, in¬
building scarcity and a ■ building
dividuals, corporations and banks
.
have
purchased
more
than
two
bonds
of v Government
war
since
On the other hand, the outlook
for profits in the post-war period
is not too good.
As the banks have pur¬
chased bonds and expanded their
banks.
ratio of
cash
de¬
to
mand liabilities.
In this process
the. total currency in circulation
has risen to 26.8 billion dollars and
total; bank
the
150
deposits
dollars.
billion
The
exceed
reserve
ratio of gold has steadily declined
from above 90 in 1942 to well be¬
To protect the Federal
Banks against the ap¬
low 50.
Reserve
proaching deadline of the reserve
Congress
ratio
has
the
lowered
i
Civilian production and market¬
more
complicated than
production and marketing
where all production goes to one
buyer, according to specifications.
Costs
of
production have risen
sharply as a result of the war and
ing
are
war
for
long time.
a
While
for
is
Stock* Exchange
firm of Faroll & Company, 208
South La Salle Street, it is an¬
York
Mr. Seaverns is
ber
of
which
a
a mem¬
pioneer Chicago family
has
well-known
been
on
pushing
cheaply
and
as pos-
potent forces
over
to six times
may
will remain from four,
as
high
as
before the
Post-war taxes must remain
a
common
stocks
will
tend
to
with earnings in the future
in the past, r When prices get
move
as
far ahead of
is
earnings
inevitable
in
a
correction
time.
Inflation
increase earnings for some
companies, but for. the most part
may
inflation will
cause
a
decrease in
price levels
were
In 1921-1923
crease.
the prices of bonds
rates
Iowa III. Tel.
3-5%s 1949
the in¬
on
there
was
Michigan Chemical Co.
a
Gov¬
sharp decline in money rates and
commodity prices.
Money rates
ernment bonds and the abundance
hardened and continued their ad¬
of
vance
up
and stocks.
cheap
The low rates
on
the de¬
high grade
declining yields.
The
scarcity of high grade bonds with
satisfactory yields created the de¬
mand for second and third grade
bonds, /preferred and
common
stocks. - The abundance of cheap
money seeking income with the
help, of that, deep-seated desire
oh the part of everyone who has
money for capital gains has cre¬
ated a speculators' paradise.
Any
created
money
mand
for
bonds
at
all
bond
or'stock
than
3%
that
would
its
on
value
of
bonds
and
of the Government's
policy.
It is
as
stocks
a
cheap
will
as
capital
supply
the
lack of,
low
run
high
up
grade
'
•
Corp.
money
and
''
^Circular
in¬
curb
will
i
JJ
7 V '/|S
1
/
' ' V '
.,
,
\
\ 1
■
f
;■
'•
''
request
on
'
ADAMS & CO.
bonds, and real estate
231 South
,4
Salle Street
La
Chicago 4, Illinois
,
Phone State 0101
Teletype CG 361
from 50%
original fixed val¬
assets valued at
to 200% of the
ues
When
is
utility
a
solvent
is
company
.compelled
a
which
to
reor¬
ganize its capital structure t arid
repudiate its contracts with its
security holders, and divide up its
assets, giving to bond and pre¬
ferred stockholders assets of much
For the most
which
companies
the
security
with
the
holders
hope
that
greater value than they contracted
these-common stockholders would
for and taking from the common
part rising money rates have ac¬
companied business activity and
be able to recover the contractual
stockholders
money
the
future
rights
to
growth for which they contracted
and upon which they risk their
rates/have accompanied business
stagnation and depression.
From
1873 until 1896 money rates and
money,
;
disrupting
forces
United States tended
interrupted short
ceive
purchased and the common stock¬
holders are to be deprived of a
large
per
cent
of that future
growth upon which they risk their,
money.
Since the Supreme Court
agreed to review the "death sen¬
tence?. of the public utility hold-:
ing companies in the fall there has
been extraordinary activity in the
common
stocks of these holding
capital
In the past we have
long
periods
of declining
money rates and long periods of
declining
In the present bull
reorganization of the
structures of the utility
the
holding companies has been
great magnet for speculation.
had
set
are
speculative
ity holding companies
From 1896 until the end
some
are
earnings for corporations because
no other one force has
powerful in fanning, the
speculative fever in the present
Perhaps
been
more
market
than
the
bargain
hunters seeking the graft obtain¬
prices of bonds
preferred stocks of
rights they purchased.
bull
in motion.
For example, the
and
periods of rising money rates and
prices.
Common
market
in price or who has
securities on which
to decline with
Engineering Corp.
speculation.
formal times.
prices in the
Interstate Aircraft &
tions and the Bull Market
his
and
needed.
create
hand, it will
The promise of capital apprecia¬
tion is always a force that creates
the yield is lower than in ordinary
prosperity
W'.Common & Preferred
*Howell Elec.Motors
Corporate Security Reorganiza¬
are
rising money rates.
y
which have been overvalued.
'
guard who has
securities that have
grade
•
Preferred
&
Mohawk Liqueur
for stocks,
permanent.
A hasty examination of financial
history and the capital markets
should dispel that idea and place
on
Common
bring sharply rising
interest rates and declining' prices
The duration of this period of
cheap money has led ,to the belief
pn the part of many people that
everyone
*'
capital for production pur¬
convertible
speculative rumors.
low interest rates
York
Common
se¬
on
CG 1234-5
Franklin County Coal Corp.
'Any attempt to return to sound
t Unfortunately low grade securi¬
high grade
sav¬
poses.
ties ar,e bid up as much and some¬
curities for income returns and
capital
new
On the other
money
V
New
^National Terminals Corp.
great scarcity and high prices with
unheard of want and poverty for
flation
than
only come out of
can
To continue to increase debt
inflation- and' mark up the
prices of existing, capital; "will not
natural for prices
wire
ACTIVE TRADING MARKETS
;
by
it is for water to seek its
more
capi¬
new
ings.
level.
times
civilian purposes
for
needs
require billions of
tal annually for many years. This
to be marked up to the new capi¬
talized values of lower interest
rates
and the delayed and accumu¬
lated
and
'
to
8800
:Direct
The large demand for capital as
result of the destructions of the
war
inevitable result
an
Field BIdg., Chicago 3
Randolph
inflation.
or
Dairy Com.
HICKEY & CO.
sharply with the
to
1934.
depression .from; 1929
Since 1934 money rates have been
kept artifically low by currency
dividend return has become the
subject of speculation for capital
appreciation.
This, rise in the
real estate is
Money
declined
rates
yield
interest
Southwest Ice &
from 1925 until the collapse
of the bull market in 1929.
other
more
been
;
relief
be
year or two after the
the Government's need
revenue
tion
has become associated with
nounced.
a
production
.
tax
some
expected
war
peacetime
re¬
permanent charge upon
the earnings of industry and in¬
dividuals.
The price of corpora¬
CHICAGO, ILL.—Louis C. Sea¬
the;; New.
for
duced
high and
'
Faro!! & Oorapahy
verns
these costs cannot be
most of
war.
Seaverns io Join
in
as
the most
are
of World War I both money
the needs of
.
began,. Probably half of these
desired
a
buildings far exceeds
that after World War, I.
bonds have been purchased by the
the
almost
residential
the
deposits it has been necessary to
increase the currency to maintain
for
The present scarcity of
decade.
hundred billions of dollars worth
lasted
that
boom
to. finance
the Government
value..
dented increase • in
credit, refugees who
the
uals and
(TGara Coal Co. 5s 1955
; of
to carry on the war has raised
index of production to the
St. Louis
Chicago
and credit and the scarcity
civilian goodsseems to fulfill
all the requirements Tor a vast
rise in prices of anything of ma¬
Mfg. Corp.
Central Soya
Founded 1890
money
Immediate Causes
.
Galvin
INCORPORATED
ACTIVE IN
ARE
WE
Stifel, Nicolaus & Company
.
util¬
to
able by the senior
security holders
in these companies.
re-
OIIIIHIIIIIIllllllllllllllllllllllllllllllllllllllilllllilllHIIllilllHIIHHIIIIIIIIIIIIIIIIIIIIIIIIIII^iHlfillllll
'
La
Salle Street and
in the grain
!trade for three quarters of a cen¬
tury. His grandfather became a
member
of
Mr,
an
War
Trade
and
later
elevator business here.
Seaverns
and his father,
late George C, Seaverns,
Seaverns
of
Board
Civil
before-the
started
the
&
Co.
1932 he became
in
a
the
organized
1921
in
and
partner of Ab¬
of
increase
the
in
the
costs
i't
of
operation which accompany infla¬
tion. It is difficult for a corpora¬
tion
to
increase
its
profits
CONTINUOUS INTEREST IN:
THE
with
rising prices for raw materials,
increasing wages and rising taxes.
In
some
instances volume
sorb these costs.
is
can
Announcements;'
Le Roi Co.
Koehring Co.
ab¬
:
—
■
by technical factors,:
tools, machines and processes nec¬
National
Tool
Co.
Shaler Corp.
Compo Shoe Machinery Corp
deserve
be
Co.
Northern Paper Mills
■,
personnel and office location chaViges
care in preparation.
Wejwiil
glad to suggest appropriate fprms
suitable for such advertisements,
of
Manufacturing Co.
Standard Silica Co.
Paper Co.
Macwhyte Company
limited
OF
James
f
1
Nekoosa-Edwards
But volume itself
SECURITIES
'
Rochester
bott," Proctor & Paine.
He lives essary to production; and also by
extensive the well known economic. law. of
business
interests
in
Chicago. diminishing returns with increased
Faroll & Company, are members applications of labor and "capital. ' ■
of the leading stock and commod¬
Interest Rates and Security Prices
ity
exchanges
and
maintain
branch offices in various Illinois
'The low money - rates inaiiw
Telephone Co.
,
*
*v
• -
tamed
t>f*inflating-the .currency"
<•
„
j
225
EAST MASON
PHONES—Daly 5392i Chicago: Stat. 0933 .'
Teletype Ml
.
branches(
1
New York6,N.Y«
Telephone COrtlandt 7;?060
Boston Chicago
1'
Incorporated
131 Cedar Street
.
;
Guenther Law
Advertising in all its
■.
/
'
Hamilton Mfg. Co.
in Lake Forest and has
and Iowa cities. L.
Consultation invited
<
i
Albert Frank
**
Philadelphia San Francisco
THE COMMERCIAL &
524
FINANCIAL CHRONICLE
FACILITIES
CLEARANCE
Lukens Steel
offer
We
Gruen Watch Co.
-
'■
■
■■■ ■•
;
Mid-Year
v.;:1;,
enced
Appraisal
Memos
1529
N.
Y.
by
Telephone—WHitehall 3-7253
Wire
Private
Philadelphia, New York and Los
and
us
Angeles
experi¬
security
an
of
clearance
the
■
moderate.
COMPANY
Lives and Granting Annuities
on
an'd
15th
>
Streets
Chestnut
PHILADELPHIA
will be pleased
we
to furnish this
between
System
'-"V.
For Insurances
V
has been prepared
issues
District
Los Angeles
Hagerstown, Md.
Pittsburgh, Pa.
handling
for
Dealers
Security
THE PENNSYLVANIA
Philadelphia and Philadelphia School
of
Philadelphia 2
Walnut Street,
New York
and
Inquiries Invited
complete appraisal of all outstanding City
A
Philadelphia and
Angeles Stock Exchanges
Los
department
PHILADELPHIA BONDS
BUCKLEY BROTHERS
Members New York,
Brokers
Our facilities are of the best and the cost is very
Request
on
to
transactions.
Standard Stoker
Thursday, August 2, 1945
•
Member
Member
Federal Reserve System
publication
Federal Deposit Insurance Corp.
request
on
By WILLIAM F. MILLS
Philadelphia
STROUD & COMPANY
Bank & Insurance
H. N. NASII & CO.
Locust
296 & PH 297
Wires REctor 2-6528 & 2-6529
Phone
New York Phone
v"
Pittsburgh Railways Co. Nears Clarification
HAnover 2-2280
1477
and principal when due, with the
possible exception of a short pe¬
riod during the Bank Holiday in
1933 when the banks of the nation
were
closed and the monies on
Pennsylvania Brevities
Chestnut Street, Philadelphia 2
Phila.
v-:/;:
2039, Pfd. & Common
3-6s
Teletype PH 257
made public last week by Philip A.
Vice-President of Philadelphia Company, the multimillion dollar muddle of traction companies comprising the Pitts¬
burgh Railways Co, system appeared to be along the : road to a
Inland Gas
practicable solution.
'
Mr. Fleger stated that substantial progress has been made in
V
1st 6Hs 50% Paid ,
the
last
year
in
determining-^
claims against the Railways Co., Halsey Stuart Group
Little Rock Hot Springs
which has been in- receivership
Offers So. Bell Issues
4's
since May 10, 1938.
Such claims,
A large group of underwriters
which
may
aggregate approxi¬
headed by Halsey, Stuart & Co.
Aldred Inv. Tr.
mately
$5,000,000
unless com¬
Inc. on July 31 offered $45,000,000
promised for less, are amply pro¬
41^S '67 :•
Southern Bell Telephone & Tele¬
tected by the $19,000,000 cash or
graph Co. 40-Year 2%% Deben¬
equivalent now held by the oper¬
ating Trustees.
The steps pro¬ tures, due August 1, 1985, at
101 l/s% and accrued interest. The
GERSTLEY, SUNSTEIN & CO. posed by Mr. Fleger are as
According to information
Fleger, Senior
,
deposit could not be obtained until
the reopening.
This event could
hardly be termed peculiar to the
coal regions.
.
-
New
St. Philadelphia 7, Fa. J
Bell System TeL
PHLA 691
f
York Phone
follows:
WHitehall 4-2360
'
*
"
' '
issue has been oversubscribed.
•
Net
and settle¬
rank prior
1. Determination
of security holders.
to those
,
&
:'■■■■ i-
'J;
BOUGHT
—
SOLD
ship.
QUOTED
WIH. W. FOCARTY & CO.
1919
PHILADELPHIA 6, PA.
Teletype PH 240
Dealer Inquiries
Invited
American Box Board Co.
Odd Lots
& Fractions
Botany Worsted Mills pfd. & A
Empire Steel Corp. com.
Pittsburgh Railways Co.
All
Issues
;:yy-v-v~
Warner Co. pfd. & com.
[
Wawaset Securities
H. M.
Byllesby & Company
\
;
Debentures; $25,000,000 of 40-Year
the
$35,000,000 of 30Year 2%% Debentures; and $175,000,000 ($100 par) Capital Stock.
3% Debentures;
proposed
inter-de¬
pendent one upon another.
Any
plan
which
contemplates
dis¬
be seen, the
are
successively
would
have to be approved by the Fed¬
eral Court and any plan including
an
offer
to purchase
publicly(Continued on page 525)
Teletype PH 73
-
the receivership
of
Hoyer faiefftal igr.
For Sfieridan, Began
members of the
Exchange, announces the opening
of
a
Municipal Bond Department
direction of Walter R.
under the
Moyer.
Mr.
ager
for
and
Moyer was formerly man¬
of the municipal department
the
local office of Merrill
Lynch, Pierce, Fenner & Beane.
operating
total
income
for
revenues
to
amounted
$131,264,141,
before
interest
The
deductions was $15,401,796.
corresponding figures
for
1943
were $121,891,996 and $15,915,174.
The
new
debentures
are
re¬
deemable, in whole or in part, at
107% through July 31, 1950, and
at a
redemption price that de¬
creases
1 % "1 of
the
principal
amount for each succeeding fivefor
1616
Walnut Street,
Philadelphia Stock
Company,
Total
1944
year
PHILADELPHIA, PA:—The in¬
vestment firm of Sheridan, Bogan
OFFICE
Stock Exchange BIdg. Phila. 2
Phono RittenhoDM 3717
by
may
As
'
PHILADELPHIA
,
receiver¬
Philadelphia
Company to purchase all pub¬
missal
Lafayette Building
.'1
•
•
Offer
5.
steps
Lombard 6400
Upon
licly held securities.
—
Established
of
Lifting
4.
Tonopah Mining Co. of Nev.
:
cash
maining
security holders.
Issues
£ Jefferson Coal Co.
,
the
such re¬
distributable to
Computation
3.
Jamison Coal & Coke Co.
Iron
completion of the pro¬
posed financing, outstanding cap¬
italization will consist of the 2%%
ing available cash,
Columbian Paper Co.
Phila. & Reading Coal
of
$45,000,000 outstanding 3J/4% De¬
bentures, due 1962. The Company
intends calling the 3J/4S next Oct.
1 at 103%
and accrued interest.
remain¬
of
Determination
2.
proceeds to be received by
Company are to be applied
toward the retirement of all the
period until it reaches 101%
the five-year period ending
July 31,
after.
1980, and at par there¬
Accrued
interest
added in each case.
is
to
be
i
.
■
Named Gov. of
.
C. Newbold Taylor, W. H. Newbold's Son & Co., 1517 Locust St.,
Common Stock
$1.00 Preference
Bought—Sold—Quoted
E. H. Rollins & Sons
Incorporated
New York
Philadelphia 2
Boston
San Francisco
Chicago
a
of Investment Bankers
governor
Association of America.
Nalle Appointed
Richard
years
Pennypacker. 0100
1528 Walnut St.,
Philadelphia, has been elected
vice
.
Director
T.
Nalle, for past 20
president of Henry
Disston & Sons, has been elected
executive vice president and di¬
rector of
as
a
Midvale Co.
Disston director.
He remains
about a year
County Sinking Fund,
cash, Fayette County,
and
U.
S.
Government
bonds,
totaled $1,058,519 or 62.2% of the
total
bonded
debt.
The County
the
particular municipality with a
bonded debt and no visible means
of
In
support.
two in¬
be some
faith.
All of
or
one
there appears to
stances
bad
of
evidence
sore
these
spots, however, occur
in
minor
civil
this
to
Due
sales
no
least,
willing to
and
vestment
bonds
the
of
' purchasing
stronger
coal
some
region
obligations.
Fayette County offers an
inter¬
esting case in point. The County's
basic
economy
is
bituminous
rather
than
anthracite
coal
mining, but in general the prob¬
lems are similar.
The majority
the population of the County
depends
upon
bituminous coal
mining and reserves are, natur¬
of
ally, being depleted, resulting in
declining assessed valuations. But.
on examination, factors appear in
Company
,
r
emulated
be
■
-
*
of
all
bonds.
Rather, Ut
to point out that
region
intended
not
all
are
bad
for
satisfactory
exist
dis-
little
endorsement
blanket
is
the
•
is not to be construed as
course
coal
in
•
this
Obviously,
cer¬
whose
more-favor
find
-
by
communities
other
market.
obligations of this area
and
in
investment
the
of
«
do *
stronger
this locality.
in
names
opportunities
that
some
;
Natur¬
ally care must be taken in the
t
of
•
examination
such credits
i
selection
and
but this procedure
does not differ from that the in¬
figures
by
well
could
tain
priced
than the bonds of
examine, the
pertinent to
the credit of the community, is
often in a position to secure a
more
liberal return on his in¬
is
averaged
levy, yet
balanced, due
principally to estimated receipts
being
based
upon
experience
rather than a hope.
This practice
municipalities in other areas
whose debt history and statis¬
tics are often no better.
Thus,
an
investor free of prejudice
facts
have
the budget has been
region names are usually
who
1936
antic¬
about 75% of the current
the
to yield more
is
foreseeable future.
collections
tax
coal
at
Pennsylvania
since
financing
ipated in the
a
obligations of the stronger
in
bonds
bond
For the past several years current
resistance,
the debt composition and finan¬
furnishes local cial management of the County
telephone service in 948 exchange that
substantially
nullify
the
areas and
approximately half of heavy dependence on this one in¬
its telephones are located in the dustry, as far as County obliga¬
15 largest exchange areas, each tions go'.
Total. bonded debt of
having a population of 125,000 or the County amounts to $1,700,000,
more. These include the following
made
up ; of. 'three
issues as
cities:
Birmingham and Mobile, follows: :
Ala,; Charlotte, N; C.; Charleston,
$100,000.; 414s 12/30/45
: 4
S/ C.;
Jacksonville and Miami,
/ V/.-.600,000.4'/4S .2/15/49 - 4 /
Fla.; Atlanta and Savannah', Ga.;
; .1,000,000 414s 12/.J/52 ty. v/
Louisville;: Ky.; New Orleans and
..-From the above it will benotedShreveport, La.; and. Chattanooga,:
Knoxville, Memphis and Nashville,
Other
Tenn. ;
principal
underwriters
The business of the Company associated: with Halsey, Stuart &
has
shown
an
unprecedented Co. Inc. in the offering are: Bear,
growth for the past five years, Stearns & Co.; Blair & Co., Inc.;
Otis & Co.; Phelps, Fenh & Co.;
due in large part to the pre-Pearl
Harbor defense program and the E. H. Rollins & Sons, Inc.; L. F.
subsequent war program.
From Rothschild & Co.; Shields & Co.;
Wertheim & Co.; W. C. Langley
June 30, 1940 to March 31, 1945,
the Company gained 513,056 tele¬ & Co.; Central Republic Co., Inc.:
phones, of which 76,203 were lo¬ Burr & Co., Inc.; A. C. Allyn and
cated
at military and naval in¬
Co., Inc.: H. M. Byllesby and Co,
stallations, ordnance plants and Inc.; Coffin & Burr, Inc,;. Dick &
depots, etc. The number of toll Merle-Smith; Hallgarten & Co.;
messages was about 102% greater
Tucker, Anthony & Co.; William
Blair & Co.; and Putnam & Co.: .
in 1944 than in 1939.
The
issued
and
cities or counties.
the larger
no
the
has
what may be termed
divisions and not in
mainly
of
made up of
these areas among
in
extinguished in
As
years.
ago
shutting down of mining activities
for one reason or another has left
should
vestor
cases.
A
:
pursue
all
in
.
worthwhile
service
performed by the State
very
could
be
bureau that has to do with munic¬
ipal financial affairs by preparing
a
complete study of the coal re¬
gion
communities with recom¬
mendations
where
remedial
for
is
such
needed.
action
Such
a
could do much toward
alleviating the headaches that do
exist
and giving
credit in the
project
open
where credit is due.
New York Stock
Exchange
Weekly Firm Changes
The New York Stock
Exchange
following
weekly firm changes:
:.
Transfer of the -Exchange mem¬
bership
of
Joseph B. .Ray
to
Charles
H.. Sulzberger will
be
considered
on
Aug./ 9th.
Mr.
announced
has
the
,
,
Sulzberger, it is understood,, will;
act
as
an
individual floor broker.
Transfer of the Exchange mem-:
•
.
„
«
Phila. Electric Co.
7%
present
those
communities where the coal re¬
serves have been exhausted or the
the
ment of claims which
debt is due to be
the
at
exist
Defaults
time
■
213 So. Bvoad
the part of a large number of investors
Pennsylvania to refuse to consider the obligations of any political
sub-divisions that lie in the "coal-regions."
This is due in part, to
the fact that of the few Pennsylvania municipalities that have de¬
faulted or are in default at present, the great majority are located
in the anthracite mining area. / However, there seems to be no
evidence that any of the major'?
?
—
civil divisions in those regions that 41% of the debt matures in
years and the entire
have ever failed to pay interest about 3J/2
in
PHILADELPHIA 9, PA.
Bell System Teletypes PH
,
N. Y.-Phila. Private
Philadelphia Transportation Co.
■
Incorporated
v
123 SO. BROAD ST.,
Stocks
1421
There is a tendency on
bership of the late Rudolph Nadel
to Earl E, T. Smith will be con- :
sidered on - Aug;- 9th; v. Mr. Smith
will
act
as
an
individual; floor
< -;C.;
broker.
v
*
Richard H. Moeller and Blanche
A. Smith retired from partnership
in
Smith
& Gallatin, New York
Aug.- 1st. '
Michael Nerlinger, partner in
City,
.
on
Jewett, Newman & Co, died
July 20th. .
v
"
A. R.
on
Bruyn in New York
•-A. R. Bruyn has
at
60
Beaver
opened offices
Street, New York
City, to engage in an investment
business.
,
*
-
-
•<
«-
Volume
162
Number 4403
1
PHILADELPHIA
TRANSPORTATION
3-6s
;V
2039
STEEL
LUKENS
The
,
PHILADELPHIA
ELECTRIC
PHILADELPHIA
ELECTRIC
V
.
In
>iipPZfypPt
LIGHT COMPANY
&
reconversion
problem
WESTERN PENNSYLVANIA
for Philadelphia
simple;
appears
its
despite
large share in the nation's war work, it needed relatively few new plant
facilities; and its peacetime diversified industrial activity seems assured.
GAS COMMON
COMPANY COMMON
DELAWARE POWER
available at yields which
high-grade 1% bond issues.
are
similar
with
TALON, INCORPORATED COMMON
FEDERAL WATER &
BONDS, both School District and General
appear attractive in
comparison
CITY OF PHILADELPHIA
Obligations
PHILADELPHIA TRANSPORTATION PREFERRED STOCK
addition, it has substantially reduced its funded debt over the past
years and its
financial requirements are being realistically handled.
several
TRADING
COMMON
We offer:
.j/
PREFERENCE
$1.00
:/.■■'V'-v1.--
OF PHILADELPHIA
CITY
Amount
$
Rambo, Keen, Close & Kerner, Inc.
Rate
Price
,
Yield
.,
C. S. McKEE* COMPANY
1.20%
115.37
January 1, 1968/54
.
314
250,000
250,000
>:
117.71
1.25
January
31/4
-
25,000
1, 1965/55
January
lo.ooo
3V4
50,000
and Baltimore
'
3 V4
3'4
Philadelphia
Private telephone wires to New York
V
'
BONDS
1, 1970/56
117.87
1.40
1, 1965/57
119.46
1.40
Members Pittsburgh
'
Investment Securities
1518 Locust Street,
Maturity
3VB%
25,000
January
Dated
August
Stock Exchange
Union Tr. Bldg.—Pittsburgh 19, Pa.
January
1, 1958
122.29
1.30
January
SCHOOL
MARKETS
RETAIL DISTRIBUTION
1, 1975/62
124.56
1.55
DISTRICT
Teletype
Telephone
PG 496
Court 2380
1*4% BONDS
Due
1, 1945
August 1st
"
estimated
Brackenridge, Pa., are
which
exercises
jurisdiction over
Company under
the Holding Company Act.
It appears likely that the S.E.C.
may insist on a complete reorgan¬
ization and recapitalization of the
properties comprising the traction
system and the merger or elim¬
ination of the 53 underlying com¬
Philadelphia;; Company may then point out that only
by the acquisition of the minority
public holdings is such a reorgan¬
panies.
'
The
Previous
plans have failed (1) because the
ization
practicable.
-underliers
the
under
not
were
jurisdiction of the court and (2)
public holders were in no agree¬
ment as to the equitableness of
proposed distributions.
the
;
$865,065,
*
■
of
Life
*
.
of
jurisdiction over the
properties of the underliers and
j
reorganization, but
in each court test thus far
the
1 corporate rights and identities of
the
underliers
have
been sus¬
tained.
Thus it appears
phia
that Philadel¬
proposals,
Company's
outlined
by
Mr.
Fleger,
all time
a
*
.
I
WALNUT
City of
■
3'/g% Bonds
PHILADELPHIA
STREET,
January
REctor 2-0790
Price:
Further Dealer
Pittsburgh Coal Co. stockhold¬
have voted to
merge
with
Consolidation Coal Co. to form
annual
lication of the Board of Governors
'largest
and
an
output of 27,406,019 tons.
"
/
*
*
#
-
-
National
Tradesmens
Bank
&
the Federal
of
Such
Reserve System."
record has been
a
published
periodically by the Board of Gov¬
since
ernors
regulation.
Registered
Exchanges
the
published
was
adoption
of
the
A "List of
Stocks
on National Securities
as
of Jan. 31, 1943,"
the
by
Trust
Board of
1943, and
Governors in February,
creased
cumulative
Co., Philadelphia, has in¬
quarterly dividends from
350 to 400 per share on its $20 par
Directors
stock.
transferred
also
$570,000 from undivided profits to
bringing
$4,200,000.
latter
to
up
supplements
have
been
published quarterly since
then, the latest supplement hav¬
ing been published in May, 1945.
It is the practice of the Federal
Reserve Bank of New York' to
furnish
Pennroad
assets
net
reports
Corp.
;
31.
on
per
half
First
,
securities
de¬
income
net
First half profits
sales
$495,-
were
496, against $454,010 a year ago.
■pPppPPPPpP P/A
the
1
,-i,
i
Moncure Biddle & Co.
PHILADELPHIA
•
J
>
.
_
recapitalization plan involv¬
and sale to
the public of approximately 135,000 shares of new Warner Com¬
pany common stock is expected to
be officially announced this
month. Proceeds will be used for
the retirement or exchange of the
entire issue of approximately 23,-
ing the underwriting
Company
first 7% preferred, par $50, which
carries accruals of $34 per share
of
Warner
as of Oct. I, 1945.
Warner second
preferred, all of which is owned
by Wawaset Securities Co., and
present Warner Co. common will
receive
appropriate
exchanges
"
Margin Rules
,
copies
such
of
lists
and
supplements to interested persons
request. "If a particular stock
upon
stock
listed
a
lateral has
pledged
as
col¬
maximum loan value
a
Benjamin Franklin Hotel 5s 1960
Drake of Phila. 6s 1959
and
of its market value,
of 25%
unlisted stock pledged as col¬
an
has
also
lateral
value
loan
a
Even
though
ol
Phila.
loan is secured
a
by a listed stock, the loan is not
subject to the regulation unless
the loan is for the purpose of pur¬
chasing
carrying
or
listed stock;
a
and the fact that a listed stock is
pledged to secure the loan does
not necessarily mean that the loan
is for the purpose of purchasing
or carrying, a listed stock.
For ex
ample, if a person obtains a col
lateral
from
loan
a
curities
stocks,
in
list
pub¬
in
1943,
February,
or
current
supplement, a bank
treat the stock as one which
may
exchange.
Second3 Dr. Sakolski states that
"according to the rules of the
Federal
be
Reserve Board,
it would
for the dealer, in
collateraled loan from a
necessary
getting a
bank, to put
there
securities
75% margin, if
up a
happens
he
to
be
the
among
furnishes
col¬
as
lateral only one listed stock among
any
number
that
are
not
secured
of
stocks
different
listed, and
entirely by
loans
unlisted
on
2039
Wilbur Suchard Pfd. & Com*
Samuel K. Phillips & Co.
Members
Philadelphia Stock Exchange
Packard Bldg., Philadelphia 2
N. Y. Phone
Teletype
:
PH 375
/
REctor 2-0037
for the
bank
is not registered on a national se¬
lished
the
the
included Jn
not
Transportation Pfd.
Phila. Transportation 3-6s
of purchasing;, a piece ol
real estate, the loan is not subjec
to the regulation even though it is
secured by listed stocks.
Like¬
wise, if a loan is for the purpose
of purchasing or carrying unlisted
is
,
Pittsburgh Hotels 5s 1967
25% of its market value.
purpose
American
Public Service
$7 Pfd
the loan does not become
Missouri
loan for the purpose
of purchas¬
listed stock
merely because a listed stock is
pledged as collateral for the loan.
Therefore, if a loan is definitely
a
ing
carrying
or
the
for
of purchasing or
unlisted stocks
purpose
carrying bonds
a
or
and is not for the purpose
chasing
of pur¬
carrying listed stocks,
or
Public Service
lation
be
though the loan
even
secured
by
listed
Corp.
Common
BOENNING & CO.
1606 Walnut
St., Philadelphia 3
PH 30
Pennypacker 8200
Private Phone
the loan is not subject to the regu¬
COrtlandt
to
N. Y. C.
7-1202
may
On
Sakolski is
stocks.
By reducing the amount of U.G.I,
y
Interest
&
1.20%
(Continued from first page)
commercial
producer of soft coal. The new
company, to be known as Pitts¬
burgh Consolidation Coal Co., will
world's
the
may
Warner Plan Coming
1968/54
1,
115.361
1945.
ers
big time horse trade is on
agenda between United Gas
Improvement .Co. and its foster
parent, United Corp.
It is prcn
s
posed that United Corp. surrender
its 606,622-shares of U.G.I., valued
If Philadelphia Company's plan
at
$11,200,000
and 5 constituting
should -bog down, public holders 26.1% of the outstanding stock
of underlying securities have an j for u.G.I.'s holdings of Niagara
immediate recourse in petitioning j Hudson Power Corp. worth apthe court for a substantial disproximately $17,500,000.
Differr\£
"ncfl
onrt
tribution on account of "use and ences would be adjusted in cash.
shares
1.20
New York Telephone
-p
*
*
v
cline $60,781*
008
1967
high level.
new
share as $9.27 as of ;
June 30, against $8.03 last Dec.
A
1965 &
Reserve Bank Official Amplifies
Assets of approxi¬
high.
Company's
offers to
purchase will be at satisfac¬
tory price levels.
If the re¬
ceivership is lifted, debt serv¬
ice is resumed and a program
adopted providing for the pay¬
ment of back interest and divi¬
dends over a period of years, it
is felt that market prices will
take care of themselves.
;
100,000
half,
as
occupation."
1.00
To Net
mately $1,000,000,000 were also at
delphia
■
1957 & 1958
$100,000
Pennypacker 0300
provide a workable solution.
Most
public holders are not
concerned as to whether Phila¬
\
89,000
August 1,
in insur¬
the first
for
surplus,
1
1.15
bringing total to $2,174,960,399, an
court assume
thus compel a
1963 & 1964
1528
have assets of $160,000,000
.
of Pittsburgh has
made repeated efforts to have the
City
200,000
Philadelphia Telephone
•
The
.95
*
$33,922,098
force
in
1955 & 1956
Yield
1.05%
1960
Philadelphia
30,
Insurance
ance
1.10
v
Penn Mutual
Co. reported an
June
increase
1961 & 1962
1959 &
650, in 1944 period.
or
'■
As
200,000
compared with
share,
per
$200,000
.90
Maturity
of $1,000,000, or over
excess
800
the Philadelphia
.80%
1953 & 1954
191,000
in
1952
Maturity
$184,000
(Continued from page 524)
held securities would presumably
Amount
193,000
Pennsylvania Brevities
have to be approved by the S.E.C.
Yield
Amount
stocks, whenever he is not certain
the
outstanding, earnings and / asset
value of remaining shares would
be correspondingly increased.
whether he will
quite correct when he points out
The action would also take U.G.I,
under United
out from
ing
The
company.;
a
as
hold¬
S.E.C.
will
have to approve.
Output of Philadelphia Electric
Co., last week, totaled 126,419,000
k.w.hs.,
period.
2.3%
up
the
1944
for trading in
listed
the proceeds
stocks that
'
of
Regulation U, a loan is not sub¬
ject to the regulation unless the
loan.is (a) for the purpose of pur¬
chasing or carrying a listed stock;
and
(b)
rectly
secured directly
by
any
stock
not listed.
But if
purchasing
a
a
listed stock, then
the
a
be
ex¬
As indicated in Section 1
purpose of
over
may
securities
some
on
change."
use
or
indi¬
whether
or
or
hand,
that
if
loan
secured
dealer
a
Dr.
obtains
a
bank
Complete Investment
entirely by unlisted
the loan
stocks
should
be
treated
and
subject to the regulation if the
as
dealer contemplates that the pro¬
/
Brokerage Services
ceeds of the loan may be used for
the
of
purpose
carrying
a
purchasing
or
Rakestraw, Betz & Co.
listed stock.
WILLIAM
loan is for the
as
other
Members
F.
TREIBER,
Secretary, Federal Reserve
carrying
,
'
New York Stock Exchange
Philadelphia Stock Exchange
Bank of New York.
provided in
12 3 S.
July 30, 1945
supplement to the regulation
Broad St., Philadelphia 9
PhiladelphiaTelephone Kingsley 33111
,
War¬
•into new Warner common.
Company-, 1st
ner
4s,
1959, now
than
JSfew Yqrk
;;
&
Wells, 15 Exchange Place,
has
$4;000,000 and all owned by Penn
Mutual Life Insurance Co., will
partnership.
undisturbed/.
The company is
dominant in the
Philadelphia area
.Andrew
that
nounce
amortized to something less
be
We
JERSEY CITY, N. J.—Outwater
admitted
been
C.
to
the
manager
of
for
the
announce
the opening of
a
Spring
MUNICIPAL BOND DEPARTMENT
>
general
Mr. Spring has been
firm
pleased to
an
-
with
are
time
some
trading
■
under the
.
direction
Pennsylvania
of
as
depart¬
WALTER R. MOYER
ment.
distribution
jand sale of sand, gravel, limestone
the
Municipal Bonds
products
production,
and
central-mix
con¬
Heavy construction proj¬
ects are opening up in this dis¬
trict more rapidly than previously
anticipated and the management
crete.
expects near-to-capacity business
•over
the next 5
*
;
or
6 year period.
*
*
Second quarter net profits of
Allegheny
Ludlum
Steel
Corp.,
to conduct
Stork to Visit Davis
Edmund
dent
of
J.
Davis,
Rambo,
Bonds
a
general business in Municipal
specializing in Pennsylvania issues.
Vice-Presi¬
Keen,
Dolphin & Co.
Close* &
Kerner, 1518 Locust Street, Phila¬
delphia,
these
is
running
afternoons
to
.
and New Jersey
'
in
Telephone Hanover 2-2280
home
his
Fidelity
early
bride,
formerly the Countess Marie Zavorski of Buckley Brothers. Davis
;is expecting his house to be heir-
SHERIDAN, BOGAN CO.
Members
i
if
Philadelphia
1616 WALNUT STREET
Stock
•
Philadelphia Trust Building
PHILADELPHIA 9
Telephones:
Exchange
^
s»'.;
Philadelphia—Pennypacker 464*
New
PHILADELPHIA 3
KTNTrrsipv 4d.n0
Race
3355
conditioned in January.
...
Bell
York—HAnover 2-9369
System
Teletype—PH 299
"J
\ 1
•■-in
"■
i
1
v
ya":!
1
:
.
THE COMMERCIAL & FINANCIAL
526-
Thursday, August 2, 194$
CHRONICLE
CAKADIAH SECURITIES
Dominion of Canada
All Issues-*-^
Bought
——
Sold
as
A.
Vice-President in charge
Quoted
—
Richard
of
election
The
Wright
GOVERNMENT
sales
of
pro-
motion
PROVINCIAL
of
-
Hugh W. Long
&
Wood, Gundy & Co,
MUNICIPAL
i
New York 5
14 Wall Street,
^
elections, it would appear that Canada
democratic
TWO WALL STREET
vast undeveloped ^
past week, activity was almost at
resources can be exploited to the
a standstill in the external section
fullest degree by venture capital
with the price level unchanged to
and unfettered endeavor which, if
a share easier. Although there was
successful, are not deprived of a
little turnover in internals, there
just reward.,.
W
N Y-l-1045
.
as
within this category.
ing given in this
The warn-
column at the ;
with
Bretton
Woods agreements, that
there is not the slightest founda-
i
'■
'J, .hlU );:'
York 6, N. Y.
WHitehall 4-8980
(Continued from first page)
;
and more competition for greater
excellence in quality.
These will
bring more and more employment.
"The events of the last six years
shaken
have
from
us
our
com-
Production tech¬
placent attitude.
niques and science have advanced
tremendously. We now must trans¬
late this knowledge into practical
i
And we
things that can be used.
mustn't dawdle.
;
understand the
problems of industry and -the full
benefits of cooperation.
Industry
wants to help in that education,
given the chance.
Many of the
barriers between management and
know
may
'
and
chance is given.
the
when
dissolve
will
labor
■
.
people
the
; great importance that agriculture
i plays in their lives.
;
They know
"During the
have
the
war,
of
learned,
value
of
the
many
necessity,
land
and
have
to
respect it.
Surely they
this opportunity,
Gradually, the farms, the schools
come
will not neglect
and
industry are becoming more
(Closely linked. This goal must be
5
::
achieved.
"We
.
.
owe
the
men
and
..
,
<
women
who
y
fought and are fighting in
this war a debt. The Ford Motor
"Company will not forget them.
; Nor will it forget those who were
too young
and
With regard to
ture course of the
trend
actionary
-
outside
exaggeration,
i
based
on
especially
-
over-confident
anticipation of official intentions;
leads to invariable correction. The
exaggeration in the Canadian sit¬
uation is purely an exchange mat¬
high
ter,^ and
bonds
internal
Canadian
grade
still
constitute an
particularly
when any flurry in the free ex-change
market
cheapens their
attractive investment,
cost.
a
able
government
issues.
high
domestic j
grade
Canadian
Moreover the
interest pattern has been
smoothly
adjusted
slowly
universal downward trend, and
the
tion,
a
near
future to
Labor Market Areas
sion
error
of
which
control
and
accentua¬
sudden
results
loss
in
inducement
to
of
un¬
desirable
speculation and freeriding, has been avoided.
Turning to the market for the
million
and
mustache.
his
,
16
looking
largest
in
sporting
sponsors /; of
the nation.
of
group
-
WMC's ' 301
market
labor
areas.
according to States.
and
locations
tion
leading
and
.
labor market
The
revision
of
rectory
released
areas
popula¬
industries
of
is also given,
supersedes
Labor
are
of maps;
concerning
Information
Area
boundaries
further defined by means
the
Market
Di4
Areas
by WMC under date of
February 1944.
&
a
The
g
\. V-
Mail Service to Sweden
♦
informa-j
ington that effective at once, regu¬
lar (Postal Union) mail and par¬
except - insure^
parcel-post, are re¬
sumed to Sweden subject to the
rates and conditions in effect prior
to the suspension of service. Mail
intended for dispatch by air to
Sweden
is
limited
to
articles
cel-post services,
and
O. D.
C.
pound, says
the announcement, which added;
weighing
up
to
one
licensing requirements of
Foreign Economic Adminis¬
tration are applicable to articles
for delivery in Sweden, and also
the limitations imposed by order
of
the \ Postmaster General No.
"The
the
on
April 20, 1942,
c;
-" v :-.v; .r r,;
of
as
fol¬
made
individ^1
in Italy except'the
subjects of Italy pr
subjects of other coun¬
living
of
accounts
citizens
tries
or
against which
clared
have de¬
to
individuals
we
Persons
war.
effect
desiring
remittances-to
i
banks.
local
i V",
"While the-Italian Government
,
f.
has
presently authorized only the
Italy, the Bank of Naples
and the Bank of Sicily >to. hare
die support remittances, today's
Bank of
amendment to General License No.
32A
makes
it
possible for addi¬
tional banks in Italy to participate
in this program should the Italian
authorities permit them to do so.
"The Treasury Department also
announced
Nos.
32
that
and
General Licenses
33, which
authorize
support remittances to non-enemy
b 1 o c k e d countries, have been
amended by increasing from
to
$1,000
which
the
may
month.
maximum
be
remitted
Attention
the fact that,
was
$500
amount
in
one
directed to
in view of General
Ruling No. 11 A, General License
No. 32 does not authorize debits
to the accounts of citizens
Only
parcel or pack¬
sent by or
one
per week may be
behalf of the same
to
or*
person
for the
pr
jects
f■
f'■.
same
the
combined
girth to .not
"(3)
Contents
length, and
than 42 inches,
more
are
of Germany
or
or
sub¬
Japan, who
have been within enemy territory
at
time
any
since
December
1.941."
V
'i;
ad¬
■
r
Corporate
be
may
■
f
"(2)-: The weight of each parcelpost" package is limited
to 11
pounds, theMength to 18 inches,
.
Municipal
j
£osb Office Department at Wash j
and
*
family!
that of his
and
remittances
uals
received from the
been
had
concern
canadian securities
through banking channels to
individual within Italy for his
from blocked accounts of
30 Postmaster Albert
On. July
"(1)
y';
No.
License
in Italy shouldv consult their
age
;
General
amended today, a maxL
of $1,000 per month may be
Such
Lord-
total combined assets
approximately $100,000,000.
'
of
Treasury
as
support
investment
with
Inc.;
Company
YORK 5
any
of the
is composed of Affiliated
Fund,'.; Inc., American Business
Shares and Union Trustee Funds,
Public
Communities are listed alphabet-:
44 WALL STREET, NEW
Provincial
one
sent
panies
through ;the Super4
within
I,
32A,
investing com-;
.
the
mum
tion
Taylor, Deale
*
is
remittances
support
authorized to any part of
now
"Under
Abbett man¬
Lord, Abbett & Co., with offices
New York, Chicago, Atlanta
Angeles,
Support
Italy
V
payment of remittances to certain
areas
in
Northern
Italy since
banking and communication facil¬
ities may not yet be available.
From
the
Treasury advices we
also quote:
just returned to
York, where
communities of, 1,000 or more, as
June
in
agement organization.
Los
t
.
Department
announced on July 24. No assur¬
ance can be given, however, says
the announcement, as to the out-
the Coast from New
he visited the Lord,
Personal
Italy,
executive capacity.
an
xMr. Marshall has
Goldman announced that
of
■
are
.
Documents;
Washington 25, D. C., for 25cent$
a
copy.
The Directory lists all
of
intendent
Remittances to
active with
leading securities firms' in New
York,
San Francisco, and Los
Aftgeles since that date.
During
the past several years, he has
been: associated ywith the Bank of
17471
Government
business
ing the investment
1924, he has been
America in
Teletype NY 1—702-3 -;
Permits Personal
post many years experi¬
in the financial field.
Enter¬
Abbett
-
Commis¬
announced the
publication of a new Directory of
Labor Market Areas, which: be¬
comes available to. the public for
the first time
Lord,
new
ence
•
Manpower
July
on
Bell System
Coast
Abbett & Co., 210
Pacific
the
Seventh Street,
funds
the
to
-f with
office of
and
3% basis still make favor- [.
comparison
with
lower i ically
-yielding
and
bonds
ciated
raising of the Federal Reserve
rediscount rate.
classified
Canadian
Marshall; welLknowh; invest¬
ment
banker, has become asso¬
A.
in
War
vH
.
40 Exchange Place; New York 5,N.YJj
I LOS ANGELES, CALIF.—Fred
dressee;-' ;;
fishing up in Canada.
He has
ijuSt returned to his desk after
| several weeks vacation
influ¬
are
when
on
have
subjected in the
-
'
Grporatioti
controlling restraints such as the
The
S W-i
Dominion Securities
it-was an¬
the possible fu4
by Gerald M. Goodman;
market,, the re4 the firm's'<■ Pacific Coast ViceMr. Marshall brings to
of the internal President.
,
exchange
likely to endeavor to
liquidate their holdings. As in the
case of the U. S. Government bond
bonds,
;■
West
investment markets will be
all
j
;
Montreal
Toronto and
nounced
other
and
ences, can
Charlie Goodeve, partner of F.
a
prices.
internals at attractive
WHitehall 3-1874
:,B. Ashplant & Co., 2 Wall Street,
New York City, reports very fine
?
however,
excellent opportunities to acquire
section
bubble has
been rudely burst and the short
term speculative purchasers, who
concentrated on Canadian internal
the
Fishing Good in Canada
Says Charlie Goodeve
ilike
exaggeration in this
will afford
Any
direction,
Buffalo,
Direct Private Wires to
Journal.';
staff of the "Wall Street
lows:
the ones who will prevent its
j repetition."
I
pated.
depressionary
[
effect on the externals, but it must
It can be anticipated therefore
be borne in blind that the basic
that Canada will enter the transi¬
situation
is
unchanged and in
tory stage of the Bretton Woods
some
respects is improved.
As
plan with her currency unit estab¬
soon
as the speculative; excesses
lished at the current discount of
in the Canadian,; as. well as in
10% in relation to the U. S. dol¬
other markets, have been cor¬
lar.
Subsequently, .it is highly
rected, it will be possible to enter
probable that an upward revision
.into
fresh
commitments
under
might be dictated as a result of
healthier conditions.
Canada's inevitable expansion and
It is to be expected also that!
growing importance as a world
Thus
Byoir and Associates, Inc., public
relations counsel. Prior to that he
was
a
member of the editorial
.
war
women
,] are
■
|.
the
trading power.
York Prices.
away
decline in the rate is to be antici¬
I
contem- 1
a
discount.
the terrors
The veterans of this
and these young men
;
of
broke
New.
Exchanges, or at net
years
Carl
selling, point to
to fight, but who were
; forced to live through
: of war.
reports
for
market,
"Labor should be educated so it
;•
j
plated imminent change in
rate of the Canadian dollar.
Toronto Stock Exchange
61 Broadway, New
t
tion
CHARLES KING & CO.
Members
connection
in
with
as¬
for
of
Now that thq
speculative crisis is over, a further
9%%
,
Canada's adherence to the
statement
pressure
market
free
the official
from
height of the currency scare has been clearly confirmed by 1
Finance Minister Ilsley's public \
Bought—Sold—Quoted
the
in
its medium Canadian
internal securities, does not fall
chose
STOCKS
eight
Richard A. Wright
..
the
on
Toronto Stock
Montreal and
offerings and the Canadian dollar
which
however,
capital,
tive
increased
an
was
of specula¬
flow
recent
The
CANADIAN
sociated
where also
but
•
executed
Stock orders
Wright
been
has
elsewhere, there will be a tendency for private initiative to migrate
towards a country where human enterprise -is not only encouraged*
and internal bonds.
■;
Mr.
control become too oppressive
restrictions of increasing state
ling
tors.
the shack-i
countries.
INCORPORATED
external
classes of Canadian
direc-i
of
ing
all
MARKETS maintained in
Hugh W.Long,
President, fol¬
lowing a meet¬
By BRUCE WILLIAMS
,
result of the British
a
politically furthest to the right of center .of all the
Consequently, it'is logical to suppose that if
stands
A.E.AMES&CO.
RECTOR 2-7231
STOCKSv
000,000
was
announced by
As
N. Y*
open-end
vestment
n
having tot a I
assets of $62,-
CANADIAN STOCKS
NEW YORK 5,
Inc.,
rwriter
companies
Teletype NY 1-920
Bell System
e
for
Incorporated
CORPORATION
Co.,
d
u n
limited
to
nonperishable items which are not
prohibited
in
the
parcel-post
Bush & Go; in Ft. Worth
FT.
WORTH,
TEX.—Bush
&
Co. has been formed with office;
in the Petroleum
gage
in
Partners
a
are
Building, to
securities"
en¬
business
Frank Warren Mad-
dox„ John Donoho and John. Free
,
mails to Sweden.",.
„
v
,,
.
Bush.
i
,
'527
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4408
Volume 162
Chicago, Mil., St. Paul & Pacific Railroad Co.
Seaboard Railway Company
Chic., Milwaukee
When Issued Securities
Denver & Rio Grande
Chicago, Milwaukee,
St. Paul & Pacific R. R.
1994
1st Mtge. 4s,
,
Western R. R. Co.
Gen. Mtge.
St. Paul &
Inc. 41/zs, 2019, A
Mtge. Inc. Conv. 4%a» 2044, B
5% Part. Pfd., Series A, $100 Par
Gen.
Chicago, Indianapolis &
Louisville Railway Co.
Chicago, Rock Island &
Pacific Railway Co.
New
.
We will discount profits and assume
Pacific R. R.
Common Stock, No Par
:\':y
York
Stock Clearing Contracts
Stock Exchange
(When Issued)
;
•
pflugfelder, bampt0n & rust
"when issued" contracts
61
SUTRO BROS. & CO.
Members New
'
,
.
Broadway
^
& Preferred
Common
Only
losses in the above
York Stock Exchange
New York 6
-
Bell Teletype—NY 1-310
Telephone—DIgby 4-4933
Members New York Stock Exchange,
"
Arden Farms
YORK 5, N. Y.
120 BROADWAY, NEW
Telephone REctor 2-7340
Railroad Securities
Common & Preferred
Louisville & Nashville Common
Approves "Chronicle's"
View on Military Training
Correspondent Holds That Subsidizing the
Mechanical and Practical Minds More
Training of
Essential in Dis¬
Efficient Meansr of
covering and Inventing New and
Defense and Attack.
Editor, "The Commercial and Financial Chronicle":
■Your article "Compulsory Peacetime Military Training," pub¬
lished in your issue of June 14, 1945 is fully in line with my views
The
>
the subject.
on
entire year holds out no
Training all our youth for an
that any
physical or disciplinary benefits
youth
our
who
would,
Then the
and
That
a
large
percentage
Germany
billion
19
of such
youth, who have undergone the
strict, confining and most likely,
repulsive training, to quickly and
deliberately
undo
the
benefits
they derived, if any.
der
adaptation of those dis¬
coveries without delay.
justly so, resent the idea of such
regimentation. At the end of the
enforced training what is to hin¬
Refunding 3%s at 105.88, the other $53.1
million of 2%s at 98 %, draws attention to the investment value in¬
herent in the equity of this carrier.
. •
from
1935
dollars
expended over
on
armament
through
1939
was
of
Expenditures of U. S. A.
for the same period was just over
5 billion dollars.
The knowledge
of such facts should have then de¬
record.
Ernst&Co.
.
J.; L. & N; is a large system serving the south, operating some 7,184
friiles crisscross fashion.
Principal, traffic component is bituminous
coal.
MEMBERS
low rate, coal lends1**
(other than $5,566,000 due in 1946
distribution with
and which doubtless will be re¬
resultant low operating costs. Ac¬
tired out of surplus corporation
cordingly, it should occasion no
funds) will have been eliminated.
surprise that L & N is a, highly
Nearest maturity is 1955 and be¬
efficient railroad property, carry¬
tween that year and 1965, most of
ing through to net operating in¬
the System's underlying debt, un¬
come before Federal Income Taxes
fortunately
non - callable
and
a
percentage normally about 3%
carrying 4%
and 5% coupons,
greater than the average of other
Despite
itself
to
a
\ To ensure a continuance of a
high degree of operating effi¬
nual basis.
spent sizable sums for both main¬
tenance and for capital expendi¬
some
terest
on
increase
period 1937-44 inclu¬
maintenance
sive,
totaled
will
debt
million
on the
amount to
expenditures
mate
III.
'6(3
Maine Central
$180
Maine Central Pfd.
ap¬
Maine Central Com.
should
debt
this total by $425,000, so
that fixed
$307.9 million, equiv¬
N. Y«,
St., Chicago 4,
V
Lease rentals and in¬
unfunded
LaSalle
Excha
J
proximately $5,748,600 on an an¬
ciency L & N's management has
tures. In the
charges
Interest
So.
231
other
and
Broadway, N ew York 5,
120
falls due.
Class I carriers.
Exchange
Stock
York
New
leading Security and Commodity
mass
,
be most repugnanty
undoubtedly,
to
promise
would be lasting. It might,
involving the sale
Successful refundings in two operations, one
of $53.8 million First and
charges should approxi¬
$6,173,000, marking a reduc¬
from peak depres¬
of 40.8%
tion
alent to $48,889
per equated track sion charges of $10.4 million.
mile, and gross capital expendi¬
As previously indicated, gross
tures, $62.3 million, equivalent to
and net earnings rose
substan¬
try. The Rhineland episode, then
Germany's custom of enforced the Austrian invasion and what $9,894 per equated track mile.
tially : during
the war
period.
The
foregoing capital expendi¬
military- training of youth over a
Gross
revenues
rose
from
an
followed, that should have imme¬ tures are
equivalent to slightly
period of many generations has diately aroused us as to what
average of $85 million during the
over $26.50 per share of common.
probably been the direct cause of was self - apparently inevitable.
30s to $214.7 million in 1944. Net
Notwithstanding these large cap¬
her having become embroiled in
available for charges rose from an
However, we were virtually help¬ ital
expenditures, funded
debt
untold
disturbances during that less at that
time, in the way of
was
reduced $34.8. million in the | average of $16 million in the 30s,
period, besides the two recent military protection and even then
to $28.5 million in both 1941 and
8 year period 1937-44.
wars, both of which she lost igdid not do much if anything about
1942, $29.9 million in 1943 and
nominiously.
That is what en¬ it. That was our setup, militarily,
Reduction of funded debt re¬ $27.0 million in 1944.
Applying
forced military training and con¬
ferred to however, coincided with estimated reduced fixed charges
We
prior to both World Wars.
stantly carrying a chip on her must never again be so blind and rise of gross and net earnings of to past earnings, and making no
shoulder, has done for one erst¬
helpless to such evident probabil¬ the war period. Total debt at the adjustment for increased taxes,
while great nation.
We should ities of outside aggressiveness, end of 1937 amounted to $227.6 equity per share earnings adjusted
profit by that example and thus anywhere.
million.
At the end of 1941 the for the 2 for 1 split in December
avoid the self evident mistakes of
total stood at $229.7 million.
For that reason, if some serious
Al¬ 1944, rose from an average of
others.
international incident should arise, lowing for contemplated retire¬ $3.50 in the 30s to a little better
-With due respect and apologies we might be most vulnerable with ments, either already made or as than $9 in the war period ($10.16
to our great war leaders, what we only a loosely woven aggregation planned, total debt at the 1945 peak in 1943), an earning power
should do, in my most humble of enforced trained youth, whose year-end is expected to be around well justifying distribution of a
opinion, is to maintain, perma¬ military
discipline might have $180 million, consisting of the $3.50 dividend.
nently, a regular army of at least become more or less obsolete as following:
Finances are strong, net current
a' million highly trained men and
their years of such activities are Equipment trust
certificates
assets as of Dec. 31, 1944 totaling
an
It would appear ; including - - conditions sales
equally competent and effi¬ behind them.
some $45.6 million, not including
'v ^agreements "
$17,793,000
cient navy and airforce. With this much more practical and advan¬
Underlying debt
2
55,559,000 either $6.4 million of other inlimited equipment always in read¬ tageous for West Point and An¬ First & ref. 33/8s, 2003
53,581.000 vestmrnts not carried in current
cisively rung the bell in this coun¬
148 State
St., Boston 9, Mass,
Tel. CAP. 0425
,
N.
Y.
:
:
Teletype BS 259
Telephone HAnover 2-7914
r
,
.
iness, which is as moderate as this
nation can consider, we would be
immediately prepared, should any
emergency
arise, to protect our
interests until the necessary sup¬
plementary fighting forces could
and would be gotten ready.
'
What
is
furthermore
most es¬
sential is that the inventive gen¬
ius as well as the keen initiative
of a
force of the most highly
trained
mechanical and practical
jminds in this country
should be
napolis, and in fact for all mili¬
tary schools,
to materially ; in¬
crease
their
facilities.
In that
strictly voluntary manner the mil¬
itary
and disciplinary training
First
&
ref.
27/«s,
53,119,000
2003___„_-
assets, or Excess Profits Tax Re¬
fund bonds of $1,142,000.
Addi¬
$180,052,000
;
tionally, net investment in emer¬
Giving effect to recent refund¬
ing,
all near term maturities
facilities, arnortizable on a
60, months basis, amounting to
$13.9 million or $11.88 per com¬
mon
share,
will
doubtless
be
translated
into
working capital
gency
given in those institutions to the
students, would be taken and ab-r warfare. We would then be ready,
sorbed in good graces, as it al¬
at a moment's notice, to back up,
ways
/
has been.
This country,
forcefully
now
the most
re¬
spected and most powerful in the
world, should maintain that posi¬
tion, irrespective of pressure from
any source, whatsoever.
What we undoubtedily should
time
our
our
position
at
(to the probable extent of 60%)
through the medium of tax cred¬
any
leaders detect any move¬
ment
whatever which might be¬
come
a
threat to the peace
its.
of our
Taxes of L
Noth¬
country or of the world.
properly subsidized by a govern¬
ing less!
'
.
ment department to keep not only
WALTER H. WEIL. Partner
full abreast but decidedly ahead have permanently, is a well or¬
WEIL & COMPANY
of any other country in discover¬ ganized and highly trained army,
Richards Bldg. Arcade,
ing and inventing new and effi- navy and air force, fully equipped
New Orleans, La.
cient means of attack and defense.1 with the most modern tools of : "
,
-
equivalent to $13.84, $21.88
per common share, re¬
spectively. This he^vy tax burden
provides" anexcellent
cushion
against the inevitable decline in
both gross and net earnings in the
reconversion period.
lion,
and
$19.74
envisage gross
$160-$170 mil¬
Assuming a
70% operating ratio, elimination
of Excess Profits Taxes, continua¬
tion of present rate of normal and
surtax at 40%, and that taxes ab¬
.
Post-war,
of
we
some
revenues
lion for this carrier.-
sorb 13% of
post-war gross, earn¬
ings on the common should ap¬
proximate $10 per share. With re¬
fundings already consummated, a
major portion of L & N's debt re¬
and an almost
tirement completed,
impregnable
financial position,
dividends might well be distrib¬
uted at the rate of from $4 to $5
L & N's past record
per
share.
and
future
prospects entitles the
stock, currently selling at 57
and affording a liberal yield of
6.11% on its current $3.50 divi¬
inclusion
in
folio appears
a
well justified at this
.
& N have mounted
sharply, from $8.1 million in 1939
;
to
$63.6 million in 1944. Federal
Income Tax burdens in
and
1944
1942, 1943
Ware River;
amounted to $38.0 mil¬
Railroad
lion, $56.2 million and $51.4 mil-
|
iv:
'<
|
request
ONE WALL STREET
TEL. HANOVER
2-1355
3.
Exchange
NEW YORK 5
TELETYPE NY. 1-2155
'
Guaranteed by
New York Central R.R.,
To Yield over
EXPRESO AEREO
6.75% I
SEABOARD ALL FLORIDA
6's '35
Mclaughlin, baird & reuss
Members New York Stock
' '
•'
Class A and Common
Improved Reorganization Profit Potentialities
upon
port¬
\
*
KEYES FIBRE
Circular
diversified
time.
X*-'
"ROCK ISLAND"
and
dend, to an investment rating
Adams & Peck
1. h. rothchild &
Member of National Association
of
Securities
Dealers,
specialists in rails
co.
Inc.
52
wall street
HAnover 2-9072
n. 7• c>
63 Wall Street,
®
tele. NY 1-1293
New York 5
BOwling Green 9-8120
Boston
Philadelphia
Tele. NY
1-7241
Hartford
I
machinery and clothing
protected
domestic
their food,
The
where we
and the debits and see
out.
come
1
the South
supply of many
raw
materials—cotton,
tobacco,
timber, petroleum, coal, iron, na¬
tural gas, minerals, naval stores,
and a wide variety of other prod¬
side,
credit
the
On
has an abundant
ucts.
country's total produc¬
the
Of
tion, the South accounts
of the cotton, 90% of the
for 95%
tobacco,
natural gas, 60%'of
the crude petroleum, 50% of the
bituminous coal, 40% of the lum¬
75%
of the
ber, and 12% of the iron ore.
Turning
these
raw
materials
finished products has been
the basis of the South's industrial
into
progress
While
for decades. j
progress
It
,
and
satisfaction
of
At the turn ~ of the
1900, total industrial
pride.
in
century
production in the South was
valued at $1,564,000,000. For 1939,
the last year for which data from
the Bureau of Census are avail¬
able, this figure had increased to
$11,190,000,000, a gain slightly in
During the same
of 700%,
excess
while
400%,
gain
national
the
period,
was
the
states outside
366%.
South increased
^
cotton
Today, 80% of the active
spindles
and
we
nation's
are
the
of the
power
development in
contributed
has
South
sub¬
stantially to its industrial growth.
In 1943, we produced 26% of all
the electric power output in the
both
including
country,
water
and poweif from fuels.
1943 the Soiith accounted for
power
In
of
40%
highly
it has been conclusively
farm
national
crop
income.
In
1900 the South's cotton crop
brought $370,000,000; in 1943, $1,-
Our
322,000,000.
1900
tobacco
sold for $40,000,000;
$514,000,000.
Of special
crop
of
in 1943,
is
the
South's financial progress. In 1910
the banking
of this re¬
resources
gion were only $3,275,000,000; to¬
readily
can
in
gether
large
not crowded to¬
cities, but scat¬
smaller cities and towns
tered in
working
and
living
people are supported partly
by industry and trade, and partly
by agriculture. This pattern fits
perfectely into the current trend
of dispersal of large industries.
whose
The South
has excellent trans¬
portation facilities.
Today 81,473
miles of railway lines criss-cross
the Southern states.
We pioneer¬
and
nation
One of the South's leading na¬
tural advantages
is
a
land
of
is its climate. Tt
mild
temperatures,
relatively free from extremes of
out the
South, and finished prod¬
Southern plants will
markets throughout the
on
an
equal basis with
from
ucts
to
move
nation
overseas.
the South.
from other sections of
the country.
The trend towards
intensive cultivation in agri¬
obliged to learn
better farm
eggs
products.
not
produced
enough foodstuffs and clothing to
supply
the
needs of
its
own
region,
more
these
in
bringing
from distant
If
the
of
basic supplies
thus
necessitating
expensive
procedure
is
ucts, it must continue to raise the
capita income of its
people.
the
,
challenge
believe
I
"
"
'
meet
we
;
of the
need
shall
business and industrial lead¬
more
ership, constantly improving man¬
agement, to help develop our re¬
sources and opportunities.
t
,
and a wide variety of dairy
war
been
has
This
of
one
great
labor in
our
of
training
needs—the
tech¬
We also need many more
textile
the
In
the
field
South
had the reputation for
once
pro¬
largely coarse goods and
low
quality; textile
products.
This
picture; has changed
ma¬
terially in recent years as many
refinements
and
improvements
ducing
have been made in our
textile in¬
For example, we have
one
producer in North Carolina
making fine combed yarn with
counts as high as 160, which is
dustry.
nically
have
produced our share of leaders and
technicians, but many of them
were so good that they were lured
away to responsible positions in
placing orders for improved ma¬
chinery" and
Equipment
when
flows
and
steady stream of domestic
a
foreign commerce.
all of
of
sub¬
stantial footing on the credit side.
I have simply outlined the more
important of them here.
These
by
are
the
resources
South
no
means
advantages
and
which
give it
a
Now let's look at the debit
of
South's
the
side
problems
relied
have
much
too
on
crop—cotton—in our agricul¬
ture and have not had sufficient
much
cotton and
these
tobacco
market
products.
and the proc¬
materials
raw
too
us
Too
the growing of
of these
made
sudden
industry.
vulnerable
to
changes affecting
The
result
has
of
the
country.
provide full opportunity
own young men and also
for
our
import leadership from other sec¬
tions
to
broaden
our
business
viewpoint and add new types of
experience.
are
that
believe
of
There
and needs.
I
some
problems
others, but
our
are
them
of
most
are
Now
if
we
the credits,
other,
I
add
subtract one from the
that
confident
am
the
South will show a substantial ex¬
cess
the credit side.
on
there are
However,
tors
which
I
think
other fac¬
are
of much
and
market and
buy much of
raw
materials.
Recently
mistakable
.•
there have been un¬
trends and develop¬
for the expansion
of
rayon
weaving facilities and the en¬
largement and refinement of spun
rayon production.
There is also
taking
place
an
expansion of
woolen
yarn and
woolen fabric
improvement
production.
furniture
compete in
with
high grade furniture made in any
these
products
and
In
the
ending June
four years
30, 1944, $5,187,000,000 had been
spent in Southern states for war
production facilities alone—plants,
shipyards, tools, etc.
This does
not include other billions spent
for
airports,
and
camps,
purely
appearance
and pulp industry is
moving South where it has been
attracted by huge supplies of raw
and
of its paper
While
board.
wood pulp
and paper-
nation's
the
and 26%
is
working
In 1943 we produced
conditions.
of
favorable
in
much
the
of this
coarser
started
which
knitting machines.
ing its handicap in education, re¬
search and technical training. For
example, in 1910 the South spent
$80,000,000 for public schools. In
1943 it spent $511,000,000.
There
is much yet to be accomplished,
but we are making- rapid progress
in
raising our educational stand¬
ards.
Of
special
facilities
pro¬
paper
,
ing of young men to operate and
manage industrial plants.
There
are now being established at the
North Carolina State College of
Dairy
Foundations—which will do much
to broaden our technical
Paper Corporation in
Carolina which now sup¬
Ecusta
North
nearly all of the cigarette
paper for the nation and in addi¬
tion
makes high
grade writing
plies
making
?*
prog¬
'.
.
ample
bank
credit available to meet all sound
industrial
credit
needs
in
the
South
be
will
There
reconversion
the
during
period.
We have in recent years
developed many sizable regional
banks which work closely with
local community banks, thus pro¬
viding, through correspondent re¬
lationships,
a
combination
of
resources
adequate for
all needs.
- .'
financial
■
special aid to small busi¬
ness,
credit
groups
are
being
formed
throughout the country
under
the
leadership i of
the
As
a
Association.
Bankers
American
offered
The combined credit being
already formed in the
South totals over $250,000,000 and
the amount is being continually
by
groups
increased.
■:;;
Summarizing this appraisal, the
South has made great progress.
We still have far to go to equal
the economic attainments of some
other regions, but I venture to
predict that the rate of progress
in
the
South during
the next
that
there¬
fore, leave with you the slogan of
one
of our great southern rail¬
roads,
"Look Ahead — Look
decade will equal or surpass
of
I,
section.
other
any
: -V
South!"
Four Curb Members Fined
As
the
of
result of investigations
a
Committee
were
Stock Transactions
on
on four mem¬
totalling $850.
imposed
bers of the Curb,
and
Winchel
Max
Exchange
Curb
York
New
William
B.
specialists in a
joint account, were fined $250
each, because, in the opinion of
the committee, their purchase on
June 22, of 5,000 common shares
Steinhardt,
of
two
Company "was
Oil
Bank
Red
not
with
that,
and
an
'
has
been
a*
tremendous
accordance
in
established trading floor
policy, a member of the Commit¬
tee on Stock Transactions should
have been consulted before the
joint account effected a purchase
as
a
dealer which would create an
papers.
There
TEXTILE
and
unusual position in
the
the stock."
imposed
of $250 was
on
of
being
without
SECURITIES
alternate specialist in
an
stock
specialist in
Technicolor,
Inc.,
registered by the
such stock and re¬
ceiving the approval of the Com¬
mittee
on
Stock Transactions."
Charles Foshko was fined
A. M. LAW &
(Established
COMMODITIES
Phone LD-159
outstanding
also
stock,
the
Other Leading Exchanges
Home Office Atlanta •
training.
of research we are
In the field
ing developed in the South.
We
a notable example of this in
have
SOUTHERN
INVESTMENT SECURITIES
•
Agricultural
the
and
goods made from our pine forests,
other types of paper mills are be¬
UNDERWRITERS AND DISTRIBUTORS OF
Private Wires
Textile,
foundations—the
three
the
Engineering,
and
Agriculture
duties of
BANKERS
BROKERS OF BONDS, STOCKS,
train¬
technical
the
for
industry
excellent
of
Murray Furman "for assuming the
€o:
Members New York Stock Exchange
interest to
establishment
A fine
INVESTMENT
/;;-
South is rapidly overcom¬
The
reasonably necessary to per¬
mit such specialists to maintain
a fair and orderly market in such
military installations.
£
the area, many of
with two to five
plants within
fines
The paper
duction
cance.
dramatic
a
will
other section of the country.
materials
have moved
South, and there has been
development of new
into the
many
ate its progress.
impact of war upon the
is
of
particular signifi¬
manufacturing we
plants turning out
high quality furniture products,
and we have demonstrated that
have
47%
The
substantial program
a
under way
entirely new
color to the picture of the South,
factors which can greatly acceler¬
ments which give an
South
is
There
now
and
durability
ton and tobacco in an
world
available.
In
debits and
the
have had to sell much of their cot¬
unprotected
Many of our mills are already
related to these main points.
greater significance than a mere
enumeration of natural resources
been that farmers in normal times
this country.
We must
These
one
We
men.
sections
other
and needs.
We
trained
from the
plants
many
years
past 10 or
ress.
"
'
production program
has brought new and diversified
industry to the South, developing
a
large supply of skilled labor.
The
to
provide a
broader market for its own prod¬
average per
poultry,
especially
high precision work.
sources.
South
the
new techniques
management.
getting away from the one cash
crop system and in the future we
shall produce more of our ■ own
ly accelerated by this momentous
has
has been
Farming in the South is rapidly
decision/
South
debt
mortgage
Farm
greatly reduced, the use of more
farm machinery has been stim¬
ulated and the farmer has been
and
15
industry
hosiery
In the
middle Atlantic belt
is the
culture.
foodstuffs,
The
for foods
forced im¬
diversification
methods,
proved
the South, which has been evident
now for some years, will be great¬
•
need
intensified
The
and raw materials has
harbors and our inland waterways
has
..
more
portant^ items. ■$*};:"f:/f
:f''
; /: There
has;; been a substantial
accumulation of reserves, savings,
and war bonds by industry, busi¬
ness
and individuals throughout
Through our excellent ports and
insurance in force increased from
■:;
distributing
companies
dising
pulp, steel, aluminum and cement,
to name some of the more im¬
probably the finest yarn made in
essing
«
nation's
the
that
mean
and merchan¬
will establish
distribution centers through¬
great
Soutn.
tne
airplanes serve this
region and supply direct connec¬
tions with other routes through¬
the
freight
these
correct
same
South,
the
to
period war
supply contracts awarded in the
South
totaled
$25,532,402,000.
They included ships, planes, guns,
shells, -ammunition,
explosives,
high-octane gasoline, textiles, syn¬
thetic
rubber, food, paper
and
the
of the
shifting
Contracts
War
During
and
will
It
future,
throughout
$575,000,000 to $3,500,000,000. Life
30 bil¬
to
progress.
350,000 miles of modern highways
out
decision
recent
inequities. / The
To
spread
the
as
beneficial
results will not appear immedi¬
ately, but in the next five to ten
years this change in freight rates
will
greatly stimulate Southern
rate
highways, and now approximately
on
'
mission
development of concrete
ed in the
reliance
•
con¬
attractive. The
South has few metropolitan cities;
it has thousands of small towns
more
are
in
•
nificance
products
V-r
trades.
diversification
lions .'
skilled
taught
be
day they are more than $23,000,000,000.
Savings deposits in the
same period have increased from
3V2 billions to mor6 than
labor
demonstrated that Southern
—some
significance
not
Although
prises.
skilled,
the
the
enter¬
development of industrial
many
producers in the East at the ex¬
pense of Southern producers and
shippers, has undoubtedly greatly
retarded the South's development.
Nothing has happened in the past
50 years of such tremendous sig¬
possesses
Twenty-one
products.
tobacco
Electric
mills
Southern
in
manufacture 90%
,
those inbred
characteristics
of
stability and
resourcefulness so valuable in the
therefore
ditions
sense
homogenous
a
is
It
pure
population.
predominantly rural and
is
where
some
wholly
settlers,
almost
Anglo-Saxon.
period of years the figures pro¬
vide
is
pioneer
independent,
early
for
structure;
years favored
rate
■
of the Interstate Commerce Com¬
composed largely of native-born
stock/ direct descendants of the
have seemed somewhat slow,
when we review the gains over a
may
in
other
Our people are
thujs
times
at
rigors of harsher climates
regions.
The South's white population
the
\
*
who seek relief from
others
and
freight
which
heat and cold, with amplesunshine
rainfall
of
portunities; in other words, to | and an abundance
throughout the year.
This pro¬
make a banker's appraisal of the
South.
With that approach in vides a long growing season for
mind, let's put down the credits agriculture and attracts workers
South's problems and its op- j
the
well
a
market.
(Continued from page 515)
"
;
.
in
Appraises the South
A Banker
Thursday, August 2, 1945
COMMERCIAL & FINANCIAL CHRONICLE
THE
528
COMPANY
the Committee "having
that
SPARTANBURG, S. C.
Distance 51
not
use
>.
determined
proper
dili¬
1892)
gence
Long
did
he
;
$100,
Bell
Teletype SPEC 17
in
the
execution
of
an
order," although the* name of the
security
was
involved
not revealed.
in
the
*
action
.,
„
-
iVolume 162
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4408
Ids! Two Hew Series to
Group
Henry J. Simonson, Jr., Presi¬
search Corp., announces the addi¬
tion of two investment series to
National
advanced
better than
number of bills intended to
post-war
research
al¬
were
late
it
build
to
mittee
research," and iso¬
other
scientific
development.
the
belief that'after the
have thousands of
scientific
almost
and
jet-plane researchers to grasp
new
principle of propulsion
in all its phases and develop it."
agreement
some
to
Pepper
medical
stressed
"Discussing the specific point
or
research proposed
of
nine
would
Dr.
Vannevar
establishment
search
for
security
of
less than 3
for
the
Re¬
the
by Congress
of promoting a
policy for scientific re¬
purpose
needed
for
men
Harry Newton in Denver
working in this field."
women
tions, he added, because of their
limited
be
funds
had
able
been
give only short-term
to
and
grants
DENVER, "COLO. —Harry
business-
ment
the Cooper
from
Building.
or
than 5
and
nfining
portfolio
to
sues
i s
a
-
lim¬
selection
ited
such
from
H.
J.
The South's Great Future
Simonson, Jr.
Initial
selection represents the automo¬
tive, building, household and of¬
fice
equipment,
and
railroad
equipment groups, all four of
which have large post-war back¬
groups.
dent
the
bv
investment
and
share
predicts
second
trends.
and
*
more
#
*
for the
*
people
mi COAST LINE
South
,: v.y
are
mam
m
making
4'■■$?}:fiil
—Editorial from
'/ ' Richmond (Va.) Times-Dispatch
return
known
fund,
war.
similar forecasts.
is 5%.
The
national
great future
a
More
management.
price is $5 per
^estimated
the
and
Southern
after the
mands. Changes in industry groups
can
be made from time to time
The initial offering
of
His article in Sales Management, extracts
from which appear on this page today,
pent-up de¬
logs represented by
UP AND DOWN
Dean paulofw. chapman, of stu¬
University
Georgia, is a close the
as
"Speculative Series," is represen¬
tative of a portfolio of specula¬
tive securities selected for high
return.
Included in the initial
AMERICA'S
portfolio are preferred and com¬
stocks that currently
mon
give a
composite return to the investor
of 8%.
The offering price is $5
ATHENS, Ga.—Paul College of
dean cf the W, Chap¬
man,
Agriculture, University of Geor¬
share.
per
National Securities & Research
If
issued five pieces of
new literature descriptive of these
funds
which
may
be obtained
has
Corp.
request.
Although only established in
the Fall of 1940, the assets of Na¬
In industrial
Series
Securities
now
ex¬
ceed
$26,000,000. The recent an¬
nual
report to shareholders of
National Securities Series has re¬
ceived the "Merit Award" citation
the
by
Annual
"Financial World" in its
Survey of
Stockholder
Annual Reports.
Would Create Federal
gia, is author of an article in the
magazine Sales Management in
Interested
plant sites
which
or
Southeast,
we
shall be glad to
*
able for timely and comprehensive*!
studies with respect to Industrial r
he thinks the South will lead the
nation in the postwar upsurge
territory. Your
inquiries will receive prompt
and confidential attention./
Address J. M.. Fields, Assistant
2. More airports and planes.
1. More
3. More
Vice-President, Wilmington, N. C.
4.
paved roads.
rural
More refrigeration.
mobilization
on
war
July 22 that the
its scien¬
tific
research
and
development
through the Government as well
as
private organizations, a bill
introduced
was
the
expand
ment.
10. Small
to
oe
known
industry equipment.
in the, Senate for
of creating a central
scientific research Federal agency,
purpose
as
the
_
"The back of the old-time, onetenant-sharecropper system
of farming has been broken," he
writes. "Progress has been very
crop,
National
Science Foundation, a special dis¬
tr«
more
moj
(in the South) will be phenomenal,
under adverse business
con¬
tip
wH
•
..."
tin
1: As to potential Southern pur¬
chasing power, Chapman cited the
mi
fact that the Federal Reserve Bank
of Atlanta has
issued
more
new
money—in relation to previous is¬
sues—than any bank in the entire
Federal
Reserve
System since
1940;
Bank
,
of power and
ings and equipment.
7. Larger farms.
8. Livestock expansion.
9. Marketing supplies and equip¬
on
States
use
6. -Increased need for farm build¬
Senate subcommittee
much
and the
at
Federal
Richmond
Reserve
stood second.
electrification.
machinery.
Following the recommendations
United
to
business, agricultural and indus¬
trial prosperity. They are:
Scientific Ageesy
a
v\ *
forward
the rate of economic advancement
even
article, entitled, "New
Marketing v Opportunities
I see
Developing in the South," Dean
Chapman outlines 10 reasons why
5. Increased
of
postwar
go
the
In
recommend suitable locations.
our
vast
will
rapidly in the future. With any¬
thing like full-scale employment
in the United States as a whole,
ditions
Our research staff is also avail¬
possibilities in
foresees
:v';
.
j
he
marketing expansion in the South.
distribution facilities in the
upon
tional
you are
great during the past 10 years.
It
The Georgia
agricultural expert
listed the following industries as
leading the way to a record era of
Southern marketing expansion and
general economic prosperity fol¬
lowing the war:
Box factories, handle factories,
post treating plants, mill-work
plants, excelsior plants, naval
stores, grist mills, paper mills,
rayon plants, seafood canneries,
feed mills, glass factories, potteries,
hatcheries, brickyards, cementblock plants, quarries, rug making,
farm tool plants and tanneries.
amu
&ay^
mai
Washington to New
stated, July 23.
Proposed by Senators Kilgore
of- West
Virginia, Pepper of
Florida and Johnson of Colorado,
patch
York
from
"Times"
all
Democrats, the legislation, ac¬
cording to the "Times," would
have
these
specifically
purposes:
"To
provide
for
an
declared
increase
above pre-war levels in the Gov¬
ATLANTIC
ernment's support of research and
development in fields that are
predominantly in the public in¬
terest, particularly national de¬
fense, health and medical science
COAST LINE
and the basic sciences.
"To, provide for
ordination
of
an
efficient
"To stimulate
RAILROAD
co¬
Government-sup-
ported research; activities.
BUY
WAR
BONDS
NOW
general expan¬
sion in research by private organ¬
a
ization and institutions.
.
"To
promote a wider flow of
scientific and technical informa¬
tion
which may
be useful
to
in¬
dustry and agriculture and busi¬
ness,
particularly
small
enterpr^ros.
'
*
:
"To encourage a rapid introduc¬
SERVING
AMERICA'S
NEW
j.
Newton is engaging in an invest¬
industry
o
our July
proposal
National
groups
c
a
Bush
a
selecting not
m o r e
fel¬
Foundation
b y
vestment
or
search and scientific education.
"Many philanthropic organiza¬
bill, saying that here, too,
country had often been de¬
pendent on German "secrets."
A
committee
that,
made in
was
jssue, page 437, to
national
than
ganization-are
and
the
the
research for the national defense,
more
salaries
and long-term incentives and or¬
this
"Senator
was "desperately needed"
improving medical research,
for
subsistence
Reference
26
•by
v
money
"we must
war
and
research
"Mr. Pepper asserted that while
jet-plane fliers
"bare
lowships."
medical research of the
of
de¬
expressed
He
on
office
a
in the
and
reached.
approach
in¬
from
formed to carry on after the war
the functions of the present com¬
was
of the others be¬
sought
velopments.
aid
a
group
they
cause
compared
Se-
some
"fence around
before the Senate Military Affairs
Committee so that all could be
ries,"one fund
to
most
pending, adding that
he would propose joint hearings
Entitled
new
a
ready
S elected
represents
the
encourage the
scientific talent
improve
|
Series group.
Groups
and
training of
new
through a
system of research fellowship and
scholarships.";
Senator
Kilgore pointed out
that
Securities
"
Kilgore-Pepper-Johnson bill
"To
dent of National Securities & Re¬
the
Senator Johnson asserted that the
coveries
technique and inventions.
Kat'l Securities
.
tion and full use of scientific dis¬
529
FRO Nil EJRi
offices
in
PRIMARY MARKETS IN
Active
Royal Bank of Scotland
trading markets maintained in
STOCKS
BANK and INSURANCE
Thursday, August 2, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
'530
Incorporated by Royal Charter 1727
California Securities
HEAD
OFFICE—Edinburgh
Branches
Huff, Geyer & Hecht
i:
67 Wall Street
WHitehall 3-0782
10 Post Office Square
v.TfVt HUbbard 0650
PRIVATE WIRE
SYSTEM
CONNECTING: NEW YORK, BOSTON,
ANGELES, SAN FRANCISCO,
ST. LOUIS, LOS
PHILADELPHIA,
3
Scotland
OFFICES:
Bishopsgate, E. C. 2
;
f
INCORPORATED
8 West
INVESTMENT SECURITIES
SAN FRANCISCO
Teletype LA533
Montgomery Street
300
CHICAGO,
SEATTLE
49
650 South Spring Street
LOS ANGELES
Teletype SF431-432
CG-105
NY 1-2875
>
First California Company
Chicago 4 .
231 S. La Salle Street
FRanklin 7535
NEW YORK 5
9
Boston
throughout
LONDON
Private. Wires between
Smithfield, E. C. I
Charing Cross, S- W. /
Burlington Gardens, W, f
64 Neu) Bond Street, W. I
•
New York and Chicago
San Francisco, Los Angeles,
TELEPHONES TO
OFFICES
Enterprise
HARTFORD,
Enterprise 7W8
PORTLAND,
6011
£115,681,681
—
Insurance Stocks
Last week this
century old commercial banks
old fire insurance companies will
is Insurance Com¬
of North America. It was organized in Philadelphia's Indepen¬
in 1792, began immediately to write policies and was
formally granted a charter by the »•
Legislature of Pennsylvania in department was organized by the
1794.
Second oldest stock fire City of Philadelphia. The organ¬
ization
became
incorporated in
company5 is The Insurance Com¬
1820 and adopted its present name
pany of the State of Pennsylvania
which began business Nov. 5, 1794. in 1833.
During the next 20 years, from
.This is a relatively small cornpan^, however, and is under the 1820 to 1840, at least 12 new stock
fire companies started in business.
same management as the Globe &
Rutgers Fire Insurance Company. In 1822 North River Insurance
Oldest
of
the
New England Company
was
organized; two
stock companies, and third oldest years later another member of the
in
the
country,
is Providence present Crum & Forster group
Washington Insurance Company. started business, viz: United States
The Providence Insurance Com¬
Fire Insurance Company. In 1825
pany, was organized in 1799 and The Pennsylvania Fire Insurance
the Washington Insurance Com- Company
of
Philadelphia was
pany in 1800. They combined as established; this was followed in
1829 by another Philadelphia com¬
Providence Washington in 1817.
Hartford Fire Insurance Com¬ pany, The Franklin Fire Insur¬
ance
Company of Philadelphia,
pany is the oldest of the Connecti¬
cut companies, and fifth oldest in named after that illustrious patron
planes, and similar
weapons.
The production of
ammunition
year
and
steadily
dence Hall
*•
having been es¬
the United States,
tablished in the year 1810.
Second
oldest of the Connecticut group
is
1819 in Hart¬
Aetna, founded in
ford, Conn., by Joseph Morgan,
grandfather of the late J. P. Mor¬
gan, Senior.
A third Connecticut
company to have passed the cen¬
tury mark is Security Insurance
How¬
it was originally chartered
the Mutual Security Insurance
Company of New Haven.
ever,
as
Company in
1841.
It became a
company and
adopted its
stock
of
saint
Franklin.
In 1831 The Potomac Insurance
lumbia of Washington, D. C., was
of Con¬
Until 1899 it operated only
chartered by a special act
gress.
1832 saw four new stock fire
companies
launched
on
their
follows: County Fire
as
careers,
Insurance Company,
companies were organized
States, in addition
Hartford
and Aetna already
to
These
noted.
of
Company
Eagle
were:
New
Fire
Insurance
and
Fire
Philadelphia. Eagle
Company,
Association of
Fire
was
founded
in 1806 and is
the oldest New York State insur¬
second oldest New
York company is Albany Insur¬
ance
which was incorporated in
ance
company;
1811.
Oldest
of
the
New Jersey
companies is Newark Fire, which
also
founded in the year
1811,
Fire Association of Philadelphia
began business in 1817 as a mutual
was
association entitled "The Trustees
of
the
Fire
Association," but in
addition to insuring against loss
by fire it also functioned as a fire
fighting organization.
This
dual
of fire fighting and fire in¬
was
maintained
until
role
surance
1871,
in which
year
a
paid fire
as
of
Philadelphia;/New
Fire
Com¬
Insurance
Brunswick, N. J.;
New
Fire
York
New
Com¬
Insurance
of New York and Virginia
pany
Marine Insurance Com¬
Fire and
of Richmond, Virginia.
pany
York, Albany
Insurance Company, Newark Fire
of
pany
a per¬
charter
Company
Insurance
Fire
the
under
Pennsylvania
petual
Brunswick
the United
The
year
During the first two decades of
the nineteenth century four other
stock
Columbia.
in the District of
the County of
in
Co¬
of the District of
Company
present name in 1873.
■;
conservation,
and
thrift
Benj am in
In 1836 the Richmond Insurance
of
Company
business
in
Richmond
York
New
Staten- Island
Company; in 1907 it was re¬
incorporated as a stock company.
The year 1837 saw Firemen's In¬
surance Company of Washington,
ance
D.
C.,
chartered
write
business
Congress
To¬
written outside the District.
day
it
licensed in four states
is
and the District of Columbia.
the
same
year
Westchester
In
Fire
Insurance
Company of New York
was organized as the Westchester
County Mutual Insurance Com¬
pany;
as
a
in 1870 it
joint stock
reorganized
company under
was
Accompanying the changes in
war production are the energetic
efforts
facilitate
to
the
resump¬
production
factory equip¬
tion
of civilian goods
just
as
ment
rapidly as
Quotas for the
prevent expansion.
production of passenger automo¬
biles have been- set at fairly sub¬
stantial levels and may be raised
if present favorable
continue.
Before many
higher
even
trends
months, output may be approach¬
ing prewar levels and predictions
are
being made that passenger
car
rationing may be ended by
is
Board
War
Production
considering a re¬
The
January.
now
quest by the automobile industry
authorize a factory expansion
to
program
amounting to many mil¬
Prospects
becoming more
are
favorable for
a
marked relaxation
of the complex
abandonment
or
materials
of
system
control
by
of many
materials and partly finished
October
raw
Production
1.
June 30,
Available
on
Other materials curbs
eased.
have been
Board
The War Production
granted to manufacturers of
machinery and diesel engines per¬
mission to use materials which
has
originally scheduled for
were
Three
in
1841.
mil-
companies were formed
Security of New Haven
considered. The
other two are: Camden Fire In¬
surance
Association of Camden,
N.
J.,
and Reliance Insurance
Company of
Philadelphia. The
Camden company was originally
incorporated as a mutual, but in
already been
has
it became a
1870
holders
a pro
on
stock company,
stock¬
becoming
policyholders
rata basis.
Laird, Bisseil & Meeds
Members New York
Stock Exchange
Telephone: BArcIay 7-3500
sion
AJll.lCi3W»(A
Members
Bell Teletype—NY
rL. A, Gibbs, Manager
1-1248-49
Trading Department)
and
New
other
WALL ST.
York
Stock Exchange
Fire Insurance
-
leading exchanges
NEW YORK 5
to
up
a
stock
company
with a
capital of $1,000,000 and
present
name
Insurance
"Germantown
Company."
to the record, the
United States today h^s 25 stock
fire insurance companies in oper¬
According
ation whose historical
back into the
Telephone DIghy 4-2525
Com¬
of Germantown and its Vi¬
cinity." On June 21, 1944 its pol¬
icyholders approved its conver¬
the
1
incorporated in 1843
pany
oaid
NEW YORK f», N. Y.
continued
be
may
origin goes
history of our coun¬
try more than a century.
26, Bishopsgate.
London, £. C.
fn
India,
Ceylon,
Burma,
Kenya
Subscribed CapitaL...£4,000,000
Paid-Up Capital
Reserve
£2,000,000
£2,200,000
Fund
Bank
conducts every description
banking and exchange business
The
of
Trusteeships and Executorships
industry
petroleum
the
Even
Office:
Colony and Aden and Zanzibar
later.
also undertaken
produces; one of the most
which
critical items for war is being re¬
of
lieved
some
wartime
restric¬
The Petroleum Administra¬
tions.
In some lines output
greater.
year.
may
be
tion for War now permits the con¬
t a i n
refining,
Business
transportation, natural
and
special production
gasoline,
facilities
While industrial production
of
struction
c e r
which will be needed for peace¬
time
output of
petroleum prod¬
ucts;
These modifications of wartime
controls
on
business
typical of
are
others that are being made
soon as conditions justify.
A
many
as
substantial percentage
of the limi¬
tation orders of the War Produc¬
tion Board have been removed or
labor
Materials
modified.
short
still
are
in
and
many
places but the trend toward great¬
er
civilian output is expected to
become more marked each week
Production 4 %
years ago.
In .spite of considerable
variations
among
different
lines
industry
and
some
market
short-time fluctuations, the out¬
of
put has been more stable
the
during
two years than at any
other time during the war period.
past
gradual decline during
months is convincing
that the peak has been
those many
16%
has
gradually slowing down from
the peak, the volume of business
as
measured by financial trans-actions has been holding steady
and in some weeks rising.
It is
16% higher than it was a year ago •
and
three
over
when the
times
the
rate
started, The rise is
war
indicated by the
much larger bank
the checks being
cashed, as well as by the larger
amounts of currency in circulation. The quantity of money has,
increased
20%
during the last
clearings
and
months.
12
not all of f,
substantial
of the increase represents
buying and selling than ever
Probably
it is being used, but a
more
Below Last Year
Volume Is Up
been
part
during the next few months.
before.
This
divergence
fac¬
between
tory output of goods and the dol¬
lar volume of business is nearly
always characteristic of a period
of business expansion which has
continued for a long time.
It has
1
usually in the past been followed
period of declining business
a proper balance can be re¬
stored among prices, production,
costs, and markets. No great de¬
cline is likely now, however, as
long as war expenditures and the
demand for goods of all kinds re¬
by
a
until
'
main large.
a
-v'C.
Higher prices account for only
part of the present rise in busi¬
volume and for almost
ness
none
evidence
of
passed and it is not likely to be
surpassed at any time soon.
An
stable. More significant have been
period of readjustment
is going to be needed both to get
the
industries' changed
over
to
extended
of products and to
the large markets which
required to support an
different types
build up
will
be
output of goods and services
to
the stock fire
qualify as a cen¬
Germantown Fire
of Philadelphia.
This
"Mutual
Fire
120 BROADWAY,
and
quarter
The
as
Request
Branches
now
tial.
company was
COMMON
1945
Head
of sheet and strip
industrial output currently is
needs. Industry may be subject to
about 4% below last year. It is
only a simple priority system for
-about 10% below the peak which
a
three-month period, with rules
was reached in the latter part of
designed to protect such war pro¬
1943 and more than double the
duction as is still rated as essen¬
rate
when the war started
six
Insurance
Bank Stocks
tion is
Bankers- to the Government in
' Kenya Colony and Uganda
.
authorized to re¬
much that
Factories are still turning out
supplies of most of them are being
more
nearly
adequate for all goods in large volume and total
The last name in
TRUST CO.
are
of INDIA; LIMITED
■■■?.
goods has expanded so
insurance list to
19 New York
NATIONAL BANE
ratings. The authoriza¬
for the entire current
lotment
greatly
lions.
tenarian is the
MANUFACTURERS
Mills
open their ordeT books to small
manufacturers who have low al¬
.
materials made avail¬
as
Significant steps are being
taken constantly to remove gov¬
ernmental control which would
able.
may use
the production
for
materials
whenever
war
contracts are terminated or
cancelled.
The Board has also
eased its "freeze" orders on plants
labor
and
installed
be
can
well
as
its present name.
Quarterly Comparison
and Analysis
'
Glyn Mills & Co.
They
contracts.
itary
the
for certain types
Freeing Business for Expansion
of
Columbia; in 1911 its charter was
amended to permit business being
Associated Banks:
Williams Deacon's Bank, Ltd.
of civilian commodities
steel.
to
the District
by
in
by
put.
the
as
rise
to
12%
be
mean
started
County Mutual Insur¬
scheduled
is
the end of the
higher. All these
continued large factory out¬
pany
"
a
jet
rockets,
new
-
stock fire insurance companies
Oldest of the
Maintained
High Level
V
(Continued from page 517)
column discussed
This week century
considered.
be
At
DEUSEN
By E. A. VAN
in America.
Business Activity
Slocks
Bank and Insurance
This Week
TOTAL ASSETS
7008
Enterprise
PROVIDENCE,
CITIES
CALIFORNIA
PRINCIPAL
IN
that
which
equal
prevailed for
has
several years.
Yet the history
during the past year while
it
the
our
industrial
a
confidently
to
the
future
though many serious obsta¬
cles and difficulties must be over¬
even
before new*records
can
be
readjustment
may extend over a fairly long pe¬
riod
and
involve
considerable
slackening in emplovment as well
as
in production. Output is cer¬
tain to remain large even in the
face of these difficulties and in
many
bank
de¬
This trend
may con¬
tinue for some time yet and may
at
lines will be but moderately
high totals of last
results, but
it means that many
will be more prosperous
present
and have more money
business.
later
The
the
tinued
to spend. It
increased demand
for
larger markets
and:
in manv lines of.
longer it is con¬
extensive
more
readjustments
are
the
likely to
be.
The period of
lower than the
of
considerable amount of specula¬
tive buying.
makes
made.
Government,
on
services rather than on goods, and
and usually within a much
shorter time.
We can look for¬
years
come
quite
emphasis
greater
the
posits,
by
turnover
faster
people
ward
and
consumers
the
that every peak
exceeded within ten
always
been
has
later have undesirable
of
system has been
was
level
price
the increased rates of spending by
New Business Problems
While factories
are turning out
quantities of war supplies'
and the major attention of busi¬
large
nessmen
must still be concentrated
keeping
needed, the
on
nect
e
d
output
new
high as
problems. con¬
as
with ; reconversion
are
-
•4" ii
THE COMMERCIAL & FINANCIAL CHRONICLE
being given greater consideration, clines are indicated by the most
time for final recent preliminary reports. The
reconversion cannot yet be" def- decline has been somewhat great¬
ihitely1 set, but whether it comes er in the durable, goods lines than
For many plants the
[
'
soon
it
is
in the nondurable goods one. That
trend may soon be reversed, howr;
many
coming
definitely
Businessmen realize that
.nearer.
at
for
deferred
is
or."
months
ever, but the increase in the pro¬
duction of civilian goods is likely
future date they will no
some
to
be
longer have the Government as a
greatest in the durable
customer, able and willing to buy goods lines, such as automobiles,
over $70,000,000,000 worth of goods
refrigerators, washing machines,
and service eaeh year as it is now and -electric appliances of many
kinds.
doing.
Many problems arise in making
Trends in Leading Lines
the change and in finding con-
.
.
.
markets
sumer
,
large
the
as
even
they
one
Current
partly as
have.
where
sales
organizations
and trained to
sell the goods that the enlarged
and expanded factories can turn
out.
They will also be difficult
must
•
'
,
new
be built up
the
in several
lines
clearly the importance of
considering what is taking place
in each industry as well as the
changes in the general average of
all industries. While total produc¬
The problems will be most difficult in marketing and distribution
:
trends
show
now
tion is holding quite stable with
only gradual declines, activity in
fields has moved in the op¬
some
tivity. The tax load on business
is heavy and will remain so even
if some of the very high rates are
posite direction.
The rise in building construc¬
tion this year has been signifi¬
cant. After declining since June,
1942, the construction industry has
turned u p w a r d and contracts
reduced.
awarded
in
<
fields
rates
wage
even more
of
costs
for
hourly
have risen, probably
than has labor produc¬
•
Temporary problems may be as
:
.
time unless much advance plan-
ning has been done to provide for
the payments of costs which have
already been incurred and " for
shifting quickly to other forms of
production. *
..'
i Large quantities of surplus materiais and equipment are now on
hand and even larger amounts
will be on hand when military
.
.
elsewhere
,
in many parts of the
For these reasons, some
country.
■
restrictions
building
on
..
the deferred demand for
as
very large.
petroleum industry is an¬
output is in¬
creasing and it is at a new peak,
with
plants
war
is large.
much
business
conditions and
to ascer¬
tain
the
wheat crop may set a new record
with production of both winter
and
nature
goods need
somewhat
and
spring wheat totaling 1,129,000,000 bushels. That amount is a
little higher than the record
crop
sidered.
ago. It was several times greater
than in the prewar years and the
of last year and
maintain production and keep up
business activity.
,
ar
a
beets,
and
carryover
crop
which
sugar
The
cane.
much above
abroad
and
for
corn
buyer has
than
Several
feeding to
should
crop
payments
other
exceed
nearly every class of
money to spend
more
before.
The most gen¬
now close to $13,monthly, an increase
during the last year.
are
000,000,000
close to
Production of
ever
purchasing power
is that of national income, which
consists largely of wages and sal¬
aries paid to individuals.
These
farm crops will
making new records
this year. The oats crop may be
the largest in 25 years.
The ton¬
nage of truck Crops for market
may
for
eral indicator of
be less than normal.
come
size
to be carefully con¬
When buyers are eager
At present
aver¬
Total supplies of wheat will
be large
enough to supply all
domestic needs for food, for ship¬
livestock if the
of
buy and have adequate pur¬
chasing power, their demand will
age.
ment
course, the
the demand
to
will supplement
from the preceding
was
future
of about 5%
last
year's
record.
Payments are more than double
those figures during the prewar
years but the increases in recent
corn
is estimated at
months have been much less than
they
2,700,000,000 which is 500,000,000
were
much
tions
classes of income.
month
as
well
Factory payrolls have increased
the
as
date of the first
killing frosts will
The
output of hay is expected to be
very close to the record amount
produced last year and bring the
increase
or
reduce the yield.
.
farms.
The cotton crop is expected to
than
more
most
other
They have also
kept up better than has produc¬
tion.
They are more than three
times the prewar average but a
little lower
than
they were a
year ago.
Average weekly earn¬
ings of factory workers have in¬
creased 50% during the last four
some way
that will not disturb
age
established businesses nor provide
are
war
put of goods for a restricted mar¬
Some of" these.plants will not
be suitable for ■ producing civilian
tion
of workers,
working in
Lunt IBA Governors
Frank
A. Willard of Reynolds
Co.; Delmont K. Pfeffer of Na¬
tional City Bank, and Samuel D.
Lunt of Hamlin & Lunt, Buffalo,
&
have
the
been
elected
years.
Farmers constitute another
almost
not
10%
ma¬
i
years.
meet
Cotton consump¬
below
been running
last year and
much
improvement is ex¬
pected. during the next fewThis reduced rate is
months.
itary .supplies for the permanent
forces.
The/; remainder,:
/however, will:, constitute a' ;diffi4
"cult p^blemUjwhich- every businessman- Will .heed to consider/in
his planning for: the future.$, The'
; situation' with; regard to markets
v'as welt as in productive capacity
con-r
siderably; above the .average dur*
ihg the
years,
prewar
but
is
v
is
hardly sufficient to meet the de¬
mand from both the
military and
civilian?. In other branches of the
/texjile industry,, output, is holding
up^well.'-Production of, rayon is
'•
will be much different than it higher than it' was last year.
The steel industry is operating
was before the war.
at around 90% of capacity, with
In the field of larger economic
a weekly output of around 1,650,relations with other nations the
000 tons.
Current production is
approval of the monetary propo¬
about 5% below the high level of
sals worked out at Bretton Woods
factors.
'
"'
1•'
" 1
'
nessman
manages
New/
.Orders,. Decline
.
>•'.
Someindications <as to the imr
mediate future trend of, industrial
;■* production are given by the value
of new orders received by manu-
trend has been downward
understands, not
.
the /backlog-- of /orders
is smalls than it was a-year ago.
received
last month
orders
were
15 %Tlower?ihan dnthe* pre¬
ceding
*
•
•
month/
and
further
de¬
only
one
w"ho
economics
but also the effect of many other
facts
than the usual economic
:
ones.:■ •;
the minnesota husky
depends on
hallicrafters
//v.V;
y.
y/;
/
• There is
tured, but
■
v
only one "Minnesota Husky"... the
wartime restrictions
once
will be found
operating
upon
are
one
here pic¬
removed, her sisters
inland waterways all
over
the
world.
And what has this
wave
to
do with Hallicrafters?
communications
munication link between
waterway
Simply this: short
equipment of the kind which has been
developed by Hallicrafters
is
now-and will be-the vital
ship and shore in all
sorts
com¬
of inland
operations.
The future of marine radio
telephone has been assured by the
portion of the radio spectrum to
important service. For innumerable industries improved
FCC's
this
recent
allocation of
a
radio communications will mean tremendous
time and money. And for Hallicrafters, the
economies in
long established and
recognized leaders in this field, it will mean ever expanding
markets.
Agricultural Prospects Are
:apd ,in
New
who most successfully
his business under, pres¬
ent conditions will be the
facturers and the amounts :;o£ unf
filled orders on hand. The recent
most lines
M
a
year ago.
help in stabilizing
Many of the variations in indi¬
.the different national currencies 1
and provide the capital for re¬ vidual lines are offset hy opposite
trends in other lines and hence do
building world trade. Because of
the
many
conflicting interests, not change the general average.
progress in this direction is likely They do, however, affect many
to be slow, but something can be businesses and require quick shifts
accomplished to help maintain in order to meet rapidly changing
maximum production in the postT conditions. They also show how
much
the
business
trends 'are
war period. These are long-range
policies which are significant, al¬ being determined, not so much bynormal economic forces, but by
though the immediate trends will
Government policies.
The busi¬
be determined* mostly ;* by Other
last year may
COPYRIGHT
1945 ,THE
HALLICRAFTERS
CO.
Promising
The achievements of industry in
RADIO
keeping production high to meet
war
needs have been matched by-
agriculture even though the per¬
centage expansionn in farm out¬
THE
HALLICRAFTERS
SHORT
WAVE
CO.,
RADIO
WORLD'S
tuy
LARGEST EXCLUSIVE
COMMUNICATIONS
of
tion of America to serve for three
of them
the higher paid
by mills has
governors
Investment Bankers Associa¬
as many
industries.
year
IViSlard, Pfeffer and
output
to
a
be'an important factor in deter¬
mining business conditions in this
country.
A result of this large purchas¬
ing power among many classes of
buyers is that retail .sales are
holding up much better than pro¬
duction.
They are now running
about 17% higher than a year ago,
with increases in some, lines and
classes
of
stores
even
greater.
Store inventories are being main¬
tained and are sufficient to keep
retail trade at a high level. Pros¬
pects are favorable for an indef¬
inite period.
;i
pace
construction
of
future trend of trade abroad will-
The industry is planning
new
that
previously.
below last year but. considerable
above average.
Weather condi¬
this
below
is lagging is the textile industry.
Here the major factor is the short¬
armed
4
Large
Another field in which activity
been
have
goods and others will be needed
to continue the production of mil¬
;
Is
demand as well as war demand
ket.
.
Goods
annual rate of
$20,000,000,000. The pur¬
chasing power of the farmers will
be far higher than normal for an
indefinite period.
<
Government spending for war
is being maintained at over $7,000,000,000 monthly, but some re¬
ductions are likely before the end
of the year. Any sharp decline in
this spending will temporarily af¬
fect employment and civilian pur¬
chasing power.
<
Shipments abroad are holding
up well but export trade during
the first part of the year has been
with
production of crude oil and
will continue high because civilian
must be disposed of
which
built
-
for
interpret present changes in
an
about
products.
in
,
keeping
are
production of those items.
v
To
stable at
more
the
'excessive competition in the out-
•
daily
average
hand equal several years' normal
&
Demand
jor section of the market for
goods. Their income is becoming
export
the postwar needs for petroleum
Many
•
the
operations
goods to consumers.* In some lines
as
in certain kinds of machine
tools the situation is particularly
serious and surplus items now on
-
and
nearly 5,000,000 barrels. Refinery
disposal of it will involve
competition with business which
wants to produce and sell similar
:
probably below do¬
requirements.
Early estimates indicate a yield of
a
little over 10,000,000 bales as
compared with the 1944 crop of
11,800,000.
The consumption of
cotton by domestic mills will be
about 9,500,000 bales and exports
may
total
over
2,000,000. The
carryover from former crops is
very
large, however, and total
supplies will be adequate.
second largest since 1932 when
about 362,000,000 were harvested.
The greatest increases this year
have been in wheat, tobacco, sug¬
on
The
'The
-
Farmers will harvest crops from
350,000,000 acres which is
v
about
the
be small and
mestic
other line in which
part of it may not
be suitable even for civilian use
but some of it will be serviceable.
:
favor¬
more
1944.
neW
housing is
A considerable
*
conditions become
er
able, the crops may be not far be¬
low the bumper ones of 1942 and
changes. //Whehv cdnditiohs- are
again, a considerable total
feed supplies very closely in
spurt in building will take place
line with the number of livestock
favorable
operations stop. Much of this material is made up of items that
cannot be used in the Pacific War.
:
likely
are
to be continued until the situation
:
>
have
responding periods a year ago.
The biggest increases have been
in private building, especially res¬
idential.
Activity is
only
one
fourth the; peak ..rate, however,
and further expansion will be re¬
latively slow during the next few
months. Many kinds of building
materials, especially lumber, are
very scarce. Labor is still needed
the long-range ones.
Many war contracts will be can¬
celled which are only partly completed and new ones will not re¬
place those which are finished.
Any abrupt termination of these
contracts reduces employment for
a
,
weeks
recent
been 50 % greater than in the cor¬
■
V difficult as
;
in
put has not been nearly so great
as' that of factories. According to
latest estimates, total crop pro¬
duction this year will be around
20% greater than the average of
the preceding ten years. If weath¬
EQUIPMENT,
a
War fond Today
MANUFACTURERS 0*
CHICAGO
16,
U.S.A.,
•
Thursday, August 2, 1945
COMMERCIAL & FINANCIAL CHRONICLE
THE
532
^
.,.v....
DIVIDEND NOTICE
:
STOCKS, INC.
NEW YORK
The
Affiliated
payable
pany,
August
stock¬
to
1945
25,
August
business
holders of record as of the close of
Fund, Inc.
been
Special Stock of the Com¬
the
on
have
distributions
following
•declared
3, ,1945.
'
.
To-
Ex-
Reg-
,
ular
Prospectus upon request
•
QRD AB8EIT GROUP
tra
tal
Series-____+ $.07
Agricultural
$.10
$.17
.00
.11
.11
Alcohol & Dist. Series
.
.06
.06
.00
.10
.00
.06
.00
.05
.10
.00
.00
.07
.00
.07
.00
.05
.10
.07
.07
.11
.00
.11
.00
.00
.00
.08
.00
.03
Machinery Series
.08
.05
Merchandising Series
.09
.10
.13
.19
.05
.00
.05
.10
.20
.03
.10
.13
.07
.15
.23
Railroad Equip. Series.—
Steel Series
.06
.00
.03
.07
.00
.07
Tobacco Series.—.
.10
.00
.10
.19
.00
.19
.05
.00
.05.
Automobile
'<^VVM^VW/K^w<y waj^V.V^y <
OF INVESTING COMPANIES
Aviation
Bank
YORK
NEW
CHICAGO
•
•
on
request from
Principal Underwriter
Metals
INVESTORS SYNDICATE
Oil
Minneapolis, Minnesota
•
V:;
/
-v.
.tf
•• .
-
•
•
i ! %■■■'• ' ■'
Low Priced
;
I'M Shares S I
i.on
■.
in
investment dealers
400
mately
sold
states
38
Securities—an
amount
equal
to
last year's
total sales.
This is the fourth
consecutive
year J in
which
of
000
Group
double
preceding year."
dealer sales have run at
the rate of the
A Class o!
Secuiilies, Inc.
Group
A "r;v..:> :7;':-7+ 7/7-■{77/7
Prospectus on Request
GROUP, Incorporated
NEW YORK S. N. Y.
•
Lord, Abbett has issued a com¬
pocket-
Affiliated Fund in a new
is
This
folder.
each
to
devotes one
which
kit
size
a
page
hand¬
job and certainly well de¬
some
for
signed
presentation by
easy
the salesman.
REPUBLIC
INVESTORS
recent issue
a
Investment
A-B-C
Abbett
Pro¬
grams," each designed to provide
dividend check every month in
the
programs in¬
distinct types.
One
These
year.
three
clude
Founded 1932
"aggressive" and is
primarily on common
Another is designated as
"balanced" and is divided equally
labeled
is
based
stocks.
w.i.eMMWircojNC.
Dis trib u tors
+7,
~
15 William
The
bonds.
and
stocks
between
third, a "conservative" combina¬
tion, is based primarily on bonds.
St., New York 5
latest
The
gives
comparison
a
Abstracts
of
issue
of American
perform¬
Business Shares' market
VryWi.'?"*
with
ance
trials
r—^ /J)
Secubjiies Series
riod
Dow-Jones Indus¬
Dow-Jones
Composite
For the four-year pe¬
June 30, 1941 to June
Averages.
NATIONAL
■,
and
the
from
1945, except for 1942 "when
the
management's
change-over
from a policy of caution to one of
30,
optimism could not be timed as
exactly nor executed as quickly
TV A
as
the
in
turn-about
the
Aver¬
Prospectuses upon request
ages," American Business Shares
NibfD.nl Securities
&
Rjjeirc'i Cirporation
120 BROADWAY, NEW
did
better
Averages.
than
the
Dow-Jones
For the full four-year
period the record is
as
follows:
YORK, (5)
6/30/41-
WHjsreyapNg;
6/30/45
$73,723,428+ This excellent
showing was due in part to an in¬
crease in shares outstanding from
2,505,844 to 2,561,646.
However,
the major portion of the gain re¬
from
sulted
letter
5%
vfllit-
F
s
Prospectus
thus
and
may
Tlie
'
ONE
BOSTON.
CORPORATION
COURT
be obtained
local investment dealer
or
Keys lone Corporation
of Boston
STREET
MASSACHUSETTS
SO Congress Street,
in making
ance
Lord,
.
.
Boston 9, .Mass.
Speculative
Fund
increased
REPORTER'S
"
Putnam
REPORT
$13,904,000 on June 30, 1945, as
compared with $12,350,000 three
months ago.
Number of shares
outstanding rose from 816,347 to
had
a
tion
a
$2,238,000 in excess
cost.
Y.
again that size dictates
once
cates
which
for
a
will
be
field
the
in
given issue.
Approximately one-quarter the
of the American Telephone
size
offering of a week ago, Southern
Bell's
undertaking
was
large
none-the-less
ured.
deals
as
meas¬
are
v
The
two
same
banking group3
with Halsey, Stuart &
Co., Inc., this time taking the
issue, paying 100.5599 for the de¬
bentures.
Morgan Stanley & Co.'s
competed
offered to pay 99.819.; Re-
thereafter.
most firms make
and
it
point to get their key men away
in order to have them back
and fresh when the
begins in August as it
the
job
of the Trustees dis¬
cusses the dividend policy of this
fund under the caption "A Steady
182
the ultimate in distribution.
changed many
things in recent years and on this
particular occasion, the Treasury's
huge Seventh War Loan served to
It has been the
practice of the Trustees to supple¬
ment the regular income of the
Living Return."
bring about a shift in the habits
bankers as concerns
of investment
fund with distributions from real¬
their resting up
ized
gains or surplus. The divi¬
dend policy "looks toward rea¬
sonably steady annual payments"
and the Trustees express the con¬
period.
Pacific's
Southern
funding
picture
whether
the
Plans
looking
Pacific's re¬
been
Southern
the
over
have
who
Those
wondering
are
might not
several
company
find it advisable to set up
series
of
to
rather than
bonds
new
attempt
But the war has
'
offering group consisted
members which assured
But the
underwriting
the
pick-up
usually does.
-
The report
the
run
through at once.
whole
job
■
,
expected to
$125,000,000 of
new
securities,
and
in
such;
circles it is pointed out that
>
The refinancing is
involve
some
these enormous deals have been
bit sluggish
a
recently;
The big carrier is expected to
indi¬
cation that the current-month
call for bids to be opened about
the middle of September, thus af¬
will fall heir to the slowdown *
which normally is characteristic
fording ample time for exercising
of the new issue market in July.
its right to call the outstanding
bonds by Oct. 1 next.
The
vast amount of business
This time there is every
viction that the fund will continue
reasonable return on the
invested in it.
to pay a
money
{If
then
on
of
in
period
business
current market value of ap¬
proximately
plain
Ordinarily July is the big vaca¬
On June 30 investments
872,529.
N.
5,
at 101
\ with only a lk
point spread, the issue was dis¬
posed of within half an hour and
ruled at a fractional premium soon
OUR
approximately
to
York
New
Street
pretty much the number of syndi¬
of
of George
assets
Net
Incorporated
National Distributors
Wall
48
offered
George Putncftn Fund
{
.30
Investment
,
group
assist¬
this showing."
during late May
when the in¬
dustry was working all out for
the Treasury's big drive, made
July the biggest month of the
year,
by far in point of total
amount of new issues handled.
which piled up
Innovation '
Hugh
&
The
of
issue
on
New
York
to the usual
developments in in¬
in
contains
The
securities
welcome in¬
the
and
markets,
Company's
addition
in
Letter,
Long
W.
current
a
industries
whose
prospects appear most attractive
to
the management for
current
employment of funds are listed.
They are building, metals, rail,
rail equipment and steel.
Good for Business
National
Securities & Research
Corp. devotes the current, issue
of
discussion
of
the
new
Secretary
of the
Treasury.
"All in all," states this
service, "the appointment should
Investment Timing to a
The
for
more
businesslike
better
and
ad¬
relations
Congress,
intermediate
prices
Timing
as
is
trend
by
seen
regarded
downward.
'
of
.
.
stock
Investment
to be still
e v
i
s e
d
Rough calculations put the
aggregate of new financing
brought to market last month,
well
above
the
billion
dollar
,,
mark,
1
Practically' everything in
projected refinancing,
in the cards, part of it
the way of
which
was
expected to hold over
month, went through.
Now
before
there
until this
sight
sum¬
of Labor
accordingly, .those
bankers and their staffs who
had to forego a holiday in July
are
now
busily packing for a
mer
Day.
with the passing
And,
from the desk.
The exodus is substantial as can
be ascertained from an effort to
reach some of the regulars who
have taken off for a spell.
fortnight
away
Bell
a
"Quickie"
on
Telephone
234%
Co.'s
a
New York State
Snag
Electric & Gas
Corp.'s proposal to float $25,000,000
of new securities to refund cer¬
tain outstanding debts as part of
its
recapitalization plan, ran into
delay in hear¬
at least temporary
The
Service
Public
ings before the
Commission.
.'
company
to
seeks
sell
$10,000,000 of 3% first mortgage
$15,000,000 of cumu¬
bonds and
But
direct-'
proceedings,
held
preferred
lative
stock.
Commissioner Brewster,
ing
in
out the
little
the
substitution
of the pre¬
bonds would
bring the company's debt under
the 60% level by only a small
that
stock
ferred
margin.
And
value
/ '
he
that if the stated
by only some
such margin
not
$1,500,000)
would be wiped out.
held, therefore that
would
!+
"7
held
of the common stock were
reduced
He
for
accomplish
the plan
the
pur¬
of actually making the bonds
available for savings bank invest¬
pose
-
Bell
ment, judging by the history of
$45,000,000 of
Hip rnmmnn stock.
Marketing of the Southern
Research
prospectus
is
round
we
Southern
■:
Mutual Fund Literature
Corp.f—R
Hitting
and through June
National Securities &
JtairwM
of Aviation News
Fund.
though business
firms may be more pleased with
the change than individuals."
from investment dealers or
PARKER
of material
was
.
your
Distributors Group—
investment company
ment of this
with
from
.
Equipment News.
Abbett—Current In¬
vestment
Bulletin on Affiliated
Fund and Union Common Stock
asset
net
..
share of 108%. Secur¬
ing capital gains has been an im¬
portant objective of the manage¬
ministration
THE
in
increase
an
make
Incorporated
„
.05
HUGH W. LONG and COMPANY
Railroad
and
.
with
.
issues
Current
ended June
period
year
novation.
Custodian
be obtained
portant."
30, 1945, of 33 investment com¬
panies
compared,
"Incorporated
Investors showed the largest gain
dustry'
JLveystone
Investors may
the
quotes from a recent issue of Bar¬
-j-34.2%
-j-54.3%
__
Shares of Capital Stock of
Prospectus of
Prices." .. Select¬
Co.—Memoran¬
dum
on
Selected
American
Shares,
"Purchasing Power
of
Trust Investments"; current issue
of
"These Things
Seemed Im¬
Investments
ed
ron's Weekly showing that during
the
.
.
for Commodity
which
stockholders
to
Dow-Jones Industrials
■
Wellington
Wil¬
liam A. Parker, President, in his
comments
IT
in
increase
an
.
Co.—A
&
gan
Walter L. Mor¬
memorandum on
Fund, "The Outlook
1945.
June 30,
This fact is emphasized by
+71-6%
__
Series—
.10
-
formance for the
804 to
American Business Shares
Dow-Jones Composite
;
Series..
Fund
Keynotes; fold¬
showing security market per¬
six months ended
er
Investors increased from $62,305,-
a
FUND Inc.
Incorporated
of
assets
net
...
—Current issue of
value per
of Abstracts,
Walter Scott announces the "Lord,
In
total
Fund dated
Keystone Corp.
Trust
July 18, 1945.
ended June 30
quarter
market value of assets held.
New Format
plete set of sales folders on the
five
Union
Trusteed
Funds,
American
Business
Shares
and
DISTRIBUTORS
63|WALL ST.
$26,000,-
oyer
the
In
Mutual
First
Incorporated Investors
approxi¬
"During this period
Series
Shares
the semi-annual report, the sponsor,
Distributors Group states:
Series
Series
Diversified
'
letter accompanying
_
Stock
Diversified
'
Series—
Bonds
Utility
Railroad
..
.
1945 net assets of Group Securities, Inc.,
increase to $63,333,775—a gain of 55%.
Net assets of this company
have considerably more than doubled in the 12 months ended June
,■
Series—™
Series
Public
Outstanding Growth
a
Supply
Insurance
During the first half of
In
Series
Government
:>J;a:: Mutual Funds
1945;
{
Electrical Equip.
Food Series
ATLANTA • LOS ANGELES
Prospectus
{
—
Business Equip. Series—
Chemjcal Series
Co.
Lord, Abbett &
INCORPORATED
30
Stock
Building
m.
Series
Series
40-vear debentures
made it
>v>
4''
.Volume
-
Number 4408
162
THE COMMERCIAL & FINANCIAL CHRONICLE
533
not with those to be found the dollar for 1935-1939, the sales
We now are giving were still greater in 1943 than in
these up to war and since we have ;1942.:/77/^-
the black markets do not
now;
has been accumulated that
a
re¬
be
negligible; if 75%, then it
exceedingly important.
would be
For
the
fiscal
1942-43
year
the
duction in future production may
be anticipated.
In spite of this,
federal
however, in comparison with the
from taxation; in both the United
Kingdom and Canada taxes pro¬
government
raised less
30% of its entire revenue
than
expenditures of any pre-war year,
the annual expenditures of the
vided about 50 %
immediate future will continue to
;
of
be -enormous.
Who
of
;
-
■
)>:!.
has
us
not
been
told
again and again by radio, by mail
#
and by magazine and newspaper
advertisements that the govern¬
ment must secure command over
sufficient
terial
man
to
and
power
ma¬
prosecute the war to a
speedy and glorious victory? This
we know; but we have been told
little x of
the
impact that the
enter into the calculation of price
dedicated
(Continued from first page)
ly been met and such a huge sur¬
plus of certain types of material
paid
in the future!
of the
revenues
the central governments.
For
this same year, total taxes in the
United States took about 24% of
the national income while in the
United Kingdom and Canada the
percentages were 42 and 35 re¬
spectively.
Not
only
has
the
relative emphasis upon taxation
been much greater in these two
our
allies, but statistics show
end
this
Sales
terials
buy a bond does not unload the
should
and
burden
ly no reasoning can support the
cline, but these were more than
offset by the increase in sales of
non-durable goods.
Of course we
buy scarcely any new clothes;
nevertheless, we spent $6,3 billion
for them in 1943 and only $5.2
billion in 1942.
Certainly we pa¬
tronize eating and drinking places
occasionally, but how could we
have spent $17.0 billion in them
in 1943 and only $15.8 billion in
alibi.
1942?
The
need
mides
may
account
crease
from
to
we
other satisfactions.
to provide
the future;
to
To
cannot
buy the bond and the radio.
we
We have been told, too, that
people would not be able to stand
any heavier taxes.
This has been
sort of
an
those
in
alibi
or weak excuse by
authority
when they
have been
importuned by the
press and fiscal authorities to re¬
sort to heavier taxation.
'
Certain¬
7"' 7-. V-
7
As noted
a
such
above, we don't fight
with money but with men
material.
We don't use up
war
and
that the relative increase has been
lot
during
money
much
war; we have a
end than at the
a
as
did
show
$2.3
for
to
goods available for purchase by
$30 billion and $40 bil¬
a
year. 8 Little attempt ha$
between
lion
been made to absorb any of this
surplus* If people have surplus
funds they are going to spend
them; you can't continue to force
water into a barrel and not burst
the
terials
tion.
statements
financed from current taxes while
Taxation
of
accuracy
Just
because
bear the mark of officialdom does
not guarantee
their accuracy; they
the scrutiny of
withstand
must
straight thinking and sound rea¬
soning.
Economic Consequences
Many of us have wondered, and
still wondering, about the eco¬
are
consequences,
both im¬
mediate and future, of the meth¬
nomic
financing the war.
We are interested in these, not as
a New Dealer or anti-New Dealer,
in
used
ods
Republican or Democrat,
member of any profes¬
sion or creed, but as an American
citizen interested in the greatest
not as a
not
a
as
possible welfare of the country.
Let us, then, just as an interested
American citizen, interested be¬
cause the consequences must be
borne by him, make a little in¬
vestigation into the effects of the
fiscal policy pursued by the fed¬
eral government over the past few
borrowing should be used only
a
In other
last resort.
disastrous impact
of
as
words, the
financ¬
ing upon the economy of the mo¬
ment, as well as upon that of the
future, varies directly with the
extent of reliance upon borrow¬
ing and indirectly with reliance
upon
taxation.
istrators
war
those
in
Canada
the
and
"the
Kingdom.
Perhaps they
again to prove that
only
thing
that
history
teaches
us
is that
from history."
Perverting
the
Truth
In
ness was about $16 billion in 1930.
During World War I the federal
indebtedness increased from about
pluses.
-
In
year
every
since 1930 the
federal government has operated
at a deficit ranging from half a
billion
dollars
in
$56 billion in 1943.
1931
them.
sacrificed
little
This
m
now, have we really
and
suffered
unduly
in
the
present
we do it through
purchase of bonds, or through
the payment of taxes.
It would
difference
little
in
future
burden, either, if the
people who buy the bonds
also taxed to pay them.
the
same
were
depleted supply of food,
and
shelter?
Rather,
"truly remarkable with
a
isn't
it
what
equanimity
to
burden whether
the
endure
the
are
we
sacrifices
willing
of
our
are
*
Sacrifices?
sure
that
we
have felt
money
perity.
Speed
Prices,
of
retail
our
experienced
stores
must
real slump in
a
Of
tent
throw
merce
light
some
on
such
sacrifices and sales.
In
course,
but
*
all retail stores
1943
of the
prices have increased,
the basis of the value of
on
announcement
is not
an
offer to sell or
of the rise.
membered,
a
must be
It
moreover,
vi.,'.
•*;.
: \ ■"■'"J.'
x.
;
f \\
; ; •
•
\.v; vv-v
•:
j 7*'•'
i
;
7
Com-!
1943,'
securities
while
on'
'•>
<
7'y
_
assets of the
public between these'
billion
dates increased from $38.7
to $71.8 billion, the most
marked
increase
being
in bank deposits;
facts
These
are
rather ' weak
proof that borrowing has ,/beeri
anti-inflationary; from any angle;
the conclusion must be just the
opposite.
Through the channels,
of the banking system those in
authority have deliberately 4 ex-:
(Continued on page 534) !
;
re¬
that prices
v
a•
-7.7
ov v'v/-7
v
-."v-v* v*:
v
•V
I
'•
'•
;.'i... f V':'
$45,000,000
Southern Bell
Telephone and Telegraph Company
Forty Year 2M% Debentures
accumu¬
lation of these deficits places the
present indebtedness at well over
$250 billion, or a per capita in¬
debtedness of nearly $2,000,
Dated August i, 1945
Due
August
1,
1985
'
Significance of Debt
J
7
;
Price IOI*/$%
What
So much for the facts.
accrued interest
and
significance? It is in an
attempt to, answer this, question
that we must bring to bear past
experience, observation jmd reais their
>
'
soning.
:
;
^
The
Two hundred and fifty billion
.
dollars is
an
enormous
.
Prospectus may be obtained in any State in which this announcement is circulated from only such
of the undersigned and other dealers as may lawfully offer these securities in such State. 7 *
;7> ;
in relation to what? An
.enormous sum!
But
.
7i
absolute amount; may mean very
its .significance; begins to
little;
7
rela¬
portrayed. A man
six feet in height is a' tall man; but
only, in relation to a man of aver¬
age height; He would be short in
comparison with a: man seven feet
HALSEY, STUART & CO. INC.
•appear only when different
tionships
.
are:
complacent with absolute
amounts.
Whatmay.be large to
one person or under one
condi¬
tion may be small to another per¬
-
or
,
EH.
One
important -.consideration in
peiiditure.
10%
the
ever
of
If the deficit were but
expenditure, then
to borrowing, what¬
the
resort
the total expenditure, would
L.
ROLLINS &. SONS
OTIS & CO.
PHELPS, FENN &, CO,
F.
ROTHSCHILD &, CO.
SHIELDS & COMPANY
incorporated
W. C.
WERTHEIM &, CO.
LANGLEY & CO
CENTRAL REPUBLIC COMPANY
(incorporated)
BURR & COMPANY* INC.
A; C. ALLYN AND COMPANY
H. M. BYLLESBY AND
COFFIN &. BURR
DICK & MERLE-SMITH
HALLGARTEN & CO.
TUCKER, ANTHONY & CO.
incorporated
WILLIAM
July 31,1945.
BLAIR & COMPANY
COMPANY
incorporated
incorporated
under another condition.
.regard to borrowing is the rela¬
tion of the deficit to the total ex-
BLAIR & CO., INC.
(incorporated)
Let's not be ;tooi critical or
talL
son
BEAR, STEARNS & CO.
June
30, 1943, they owned $7.2 billion.
owned, on
comparable dates, $16.5 billion
and $52.1 billion.
The total cash
solicitation of an offer to buy these securities*
.•«">'":7; •:
and!
The commercial banks
The offering is made only by the Prospectus.
,
abso¬
bonds
government
supply.
federal
How War Bonds Help
Victory.;
Check
Rising
Insure
Post-war Pros¬
country sold $62.9 billion worth
of goods as against $57.8 billion
in 1942 and $55.6 billion in 1941.
Evidence
from
statistics compiled by the Bureau
of Foreign and Domestic Com¬
years.
is
presented showed that;
on June 30, 1940, the FederiKReserve banks owned $2.5 billion of
Just why bonds possess
any
peculiar trait to help speed vic¬
tory is difficult to comprehend;
but let's let that go and look at
the
anti-inflationary aspects of
bonds.
All
indices
on
price
changes show that we have had. a
marked rise in prices over the
last few years; they are not in
agreement, however, on the ex¬
recent
it
evidence
perity.".
have
that
stated
In the hearings before the
mittee on Ways, and Means,
Here is the heading: "War
Financing—For Peace and Pros¬
sting of shortages and ration¬
ing; that we have been making
real
sacrifices.
Certainly
the
Eccles
that such absorption had resulted!
in a corresponding increase in our
Drive.
the
address, before asympo¬
an
absorbed
Let's look at the claims for the
borrowing program.
They are set
forth in many places, but we may
as well observe the heading of the
pamphlet prepared by the Educa¬
tion Section of the Treasury De¬
partment to furnish1 ammunition
to solicitors in the Sixth War Loan
What
We
in
lutely essential that further price
increases be prevented.fHe sug¬
gested that this be accomplishedthrough; increased taxes, Wage;'
controls, rationing and price con-;
trols. Before the end of his ad-;
dress, however, he proceeded tot
show to what extent the banks had!
neighbor"?
difference
Have
the hands of the people?
Let us
see
what at least one of them
S.
Honestly,
through
clothing
and/or
point.
nearly
to
The
have
to
to
we
sales
do not learn
we
which
otherwise
borrowing
is
simply a device by which to ac¬
complish this end.
If we can
stand to give up what a billion
dollars will purchase, it makes
anxious
justification of heavy bor¬
rowing we have been told that
the preservation of the American
way of life Will be an asset to
future generations; these, there¬
fore, should help pay for the war
by redeeming the bonds which we
years.- ■7
; 7'7v.'—:■ buy.
Where can we find any
It is needless to repeat that the
greater perversion of the truth?
federal government has piled up We
fight a war with the energies
a huge indebtedness.
Some may of men and with guns, planes,
not know, however, that this has
ships and munitions in existence
not entirely accumulated since the
increased expenditure for defense
and war.
The federal indebted¬
$1 billion to about $26 billion of
which $15 billion, or more,, was
extended in credit to our allies,
little of which was ever repaid.
Most of the decrease of about $10
billion came from treasury sur¬
would
United
are
with
us
war;
continue
make
Our fiscal admin¬
have
strayed
farther
from the weight of authority than
have
from
the
fight
some
for this surplus of funds
ity
item.
our
at
sium conducted by the Tax; Insti¬
tute on Feb. 8, 1944, Mr. Marriner
the
been told may be open to ques¬
have upon
future economic life.
barrel
those in authority no responsibil-
says. 7
present and
In fact, the
little we have
will
From
the
at
more
/
othe^thari
The amodnt of in¬
which the people have re¬
ceived: has outrun the amount of
$2,7
beginning.
The governme.nt
simply takes services and ma¬
this control
marked.
have
we
billion spent for drugs.
To know
the composition of "general mer¬
experience, from obser¬
vation, and from research the pre¬
ponderance of opinion of fiscal
authorities is that, to the greatest
extent possible, a war should be
secure
more
':.|.7'
•:
come
the. in¬
billion
j; j
;
Price Increases
rising prices?
bro¬
more
for
How could
^de¬
some
'7;.7;
.
Reason for
chandise"; might help us to ex¬
plain the increase from $9.0 bil¬
lion to $9.9 billion spent for this
method used to
:
changes.
of most durable goods
automobiles, building ma¬
and;
home
furnishings
-
of
them
cannot at the same time use them
on
PUTNAM So CO.
•
s
;
634
THE COMMERCIAL & FINANCIAL CHRONICLE
nomic frauds
he is asked to
as
cept and sponsor.
We
the
available
for
of
money
the
purchase
of
A little thought might in¬
goods.
dicate
the
amount
the
wisdom
existence
rather
than
of
preventing
this
surplus
of
be the
can
of considerable
source
nor
to
tional credit to the
to
try to cure the
problems which have arisen from
The
extend
claim
appreciation for the tremen¬
buying all the bonds
then an extra
$100
we can,
and
bond.
But
what is the final result?
that funds for the
is
interest
on
demption
The fact
payment of
the bonds and their
re¬
be secured only
from the levy of taxes in the
future.
No suggestion has been
made
to
exempt war veterans
from the payment of such taxes.
can
no
bur¬
fluence
will
tilities,
The
This
bookkeeping.
He
said:
of
rate
this
at
war
ities
the nation but to the. nation/
If
World
War."
children have to pay interest
better
(or worse)
it, they will
to
that interest
pay
themselves."
Here
8'//V/.'V/>'v;
we
have
lenium
in
fiscal
dertless
method
so
simple that
must
son
not be
To
a
the
the
If
a
we owe
there
per¬
contention
exposes
its
to
its ab¬
debt is burdenless
it to ourselves then;
token, since we - pay
ourselves, they likewise
no
To
burden.
borrow,
and wasted
then,
of about 414%
issued
an
an
In
13A%.
average
the
on
have
secur¬
the
last
fact, it is
even
than this since
recent
a
address
in
Los
Angeles Mr. Morgenthau pointed
out that Series C notes constituted
a
substantial part of the reserves of
to
the
whole
economy
be liquid. The
know that the
reserves
corporations thus
money
[boldface
mine]
will
be
available and without loss when¬
they
ever
need
proper time
it.
When
they
comes
the
can
pro¬
ceed at full speed not
only with
their conversion but with
any ex¬
pansion plans they
Bonds
i
Not
But will it be
may
as
that?
A little scrutiny casts a consider¬
able cloud over this bright
pic¬
ture.
The
simple fact is that
these
securities
After
World
were
more
are
War
than
I
not
sellers
willing to accept
bonds in exchange for merchan¬
dise. Many advertisements stated:
the pump still needs
seems
from
bonds
of
World
low rate of interest augur for our
future economy?
;/.,//
Perhaps
too
the
much
Treasury
credit for
assumes
inaugurating
the low rate" of interest.
The fact
is
or
that, for the last ten
more
observe that we are
as
of the
an
because of
a
fall
debt
assurance
that
debt
mous
the
wasting
current rate of interest.
present
should
ipulated to favor one social class
the expense of another.
Cer¬
tainly the purchasers of the bonds
do not expect taxes for interest
and redemption to be levied upon
them in proportion to their hold¬
ings of bonds.
Suppose, in fine
print, each bond carried the nota¬
tion that "principal and interest
on
this bond will be paid from
taxes levied upon the holder of
government
than
could
borrow
the
rather
policy of the Treasury.
In borrowing for every other war
any
We need
such advertisements
cause
through taxation
tension
of
of
dollars
or a
credit..
of
■
further
ex¬
These, billions
demand
liabilities
dis-.
over
ductive
of
the
relatively stable.
real
estate
determined
has'
Pro-,
had
>
a
largely by the'
capitalized income.
been true of
has
,
years:
interest
The
same
has;
bonds, mortgages and;
shares of stock.
The reason these /•*,
values have not greatly increased/
with the prevailing low rate of
iri-f
been
because
such
considered
convinced
come
a
a
•
has-
rate
temporary /
The minute
-
that
the
we
beof
rate
.
interest is going to remain at 2%,'
just then will income producing-
recognized
rate.
The
as
rate of
the
normal
interest
is
de¬
to
Why, he
insists, the size of the
pigmy in compari¬
national wealth of $12,023,000,000,000!
A chance to in¬
spect the work-sheets by which
debt is
son
to
a
mere
our
he arrived at this total would in¬
enlightening; what an in¬
sight into the future they should
reveal!
Production Creates Real Wealth
continue to pay "war" taxes after
war has passed.
It intensifies
Many of those in high places
glibly of juggling the so¬
the
speak
cial
income
end.
The
increase
to
fact
in
accomplish
is
the
that
the
social
a
some
aroused
only
when
antipathy
class is taxed
the
of
it;because
one
to pay interest
bonds held by
and principal upon
another class. In
fact the real crux of the probl^ni
of public borrowing exists in the
income
tinker's damn
increase in pounds,
gallons,
bushels, yards and hours of serv¬
an
ice; whether we measure
by $100 or $200, in feet or
formulation
these
of
a
structure to
tax
finance debt services.
source.
lation.
It is time that
every
in¬
dis¬
"The
believed from
telligent American register
approval at having his intelligence 'deceived."
"In time
continually insulted by such eco¬
,
lf,iW.-'J.,
that
assume
we
any reason
rate of interest
a
Not every one seems to believe
that the bulwark of
Hi
.
.
•
of
truth
one
:
war economy will rest in
vigorous:
and prosperous private
enterprise.:
Intentionally they would
devices
the
of
war
f:
the.
use
to
economy
-
strengthen the hold of the govern-;
ment upon our post-war
economy..
Note what the spokesman for the.
Treasury says in his literature to;
stimulate bond sales: ".
..
we
have
revolutionized public opinion as to
what are fair rates for government
borrowing!
war
this
revolution
in
sound
basis
nomic
realities and
in
,
I believe that;
opinion has a
underlying
is
eco-;
applicable;
to the coming times of peace also.:
I hope that the policies of govern- J
determined by pressure and by an
ment will be directed to this
appeal to patriotism will continue
to
prevail after the emergency
[Boldface mine].
has
passed.
What then may we
expect if the market rate of in¬
terest begins to rise and reaches
.
perhaps 4
Every
per
cent?
Impetus to
Gov't
end.";
Ownership
;
Could it be that those
directing
the Treasury know that to force
a low rate of interest will
throttle
value
one
of
a
is
not
who often-has
•
war
pro¬
ducing property.
funds
Banks, insurance companies and
other
have
institutions
billions of dollars
bonds
payable
With
future.
in
in
an
invested
government
the
distant
increase
in
the
market rate of interest the value
of the assets represented by
bonds
will
increase
begin
to
fall.
these
The
taxes
which
that would
are
absorb
responsible
for
price
increases, but instead the
Treasury, at least, has shown more
concern over
what the taxes would /
accomplish in
Take
a
regulatory fashion.
*
the most recent proposal oi'
the Treasury to increase taxes
by
about $10 billion.
The Tax Insti¬
tute
sent
a
questionnaire
to
its
?/:
that the membership asking whether this
banks have invested so- heavily could be done, whether it should'
in these bonds lessens their ability be done, and if so by what method. to
extend credit to individuals The preponderance of replies indi¬
who may want to borrow for busi¬ cated that it could and should * *
ness expansion..
It is not diffi¬ be done.- As to method, a general:
cult to foresee that, as the bonds sales tax received greatest sup¬
held by the banks begin to shrink port, followed by heavier individ-mere
fact,
moreover,
ual / income /taxes
in particular/
as the market rate of in¬
brackets, forced savings, heavierincreases,, the safety of the. estate and
gift taxes/ and heavier:
entire banking; stru(iure^ a$7w^ll, corporation - taxes, v These
replies - **
prepare, for4 as that : of -other,-; business organ-: were motivated by, a desire to ab-; *
itself
/J
stable post-;
a
•
Mr. Ickes twits us for hav¬
shown any concern over it.
ing
to:
Neither have
r
..
enor¬
us
yards,
following this war; in fact, con¬ in quarts or gallons, is of little
Fiscal Confidence Impaired
A real increase can
sidering the low rate of interest significance.
The emphasis which has been
which
they bear, one wonders come only from an incentive to
who will accept federal securities work and the maintenance of an placed upon these obviously inde¬
fensible aspects of public borrow¬
for anything.
To redeem them in economy in which work is pro¬
legal tender currency, or to make ductive and in which the return ing tends a priori to shake one's
confidence in any fiscal proposal
them legal tender, is the
only from work is secure. It cannot
which originates from the - same
way
to make them acceptable. come from any artificial manipu¬
Such currency can be secured only
<
or'
at
knows that the par private industry and be an im- •
security is of little petus to government ownership
and
of enterprise?
control
Do
the bond."
In this case a tax re¬ moment; the important factor in
determining .its value is its rate they realize that we cannot expect f
ceipt would be preferable to the
of return in relation to the market private
industry to flourish unless:
bond.
But why have we not been
rate of return.
A $100 security we permit a return sufficient to
truthfully
informed
that taxes
bringing a return of $2 will sell challenge those who would ac- *
will be levied for this purpose?
at par if the market rate of re¬ cumulate "venture capital" to ex¬
Why have we not been told that
turn is 2 per cent, but for only plore
beyond the new horizons
"after the war, if you have any
$50 if the market rate is 4%.
In which constantly appear?
Can it "
thing to tax, we will take as much
be that they desire accumulations
of it as necessary to pay the in¬ general, the value of fixed income
of private capital to flow to other/
terest and principal on bonds; if producing investments will vary
inversely with the market rate of countries, and perhaps to have the
you own some, you will get some
interest.
It will take an invest¬ owners follow it?
We cannot def- ."
of it back; if you don't, we will
ment of only $1,000 at 4% to pro¬ initely answer these
questions; but
pay it to some one else?"
duce an income of $40 but $2,000 when some of the means point so
It must be evident that to bor¬
at 2%.
Conversely, an income of directly to stated aims we cannot
row does not eliminate the prob¬
$40 will represent a value of but be suspicious.
lem of taxation any more than
$1,000 when the market rate of in¬
Taxation has always been used'
installment buying eliminates the
terest is 4%, but one of $2,000 as a tool to
accomplish economic
payment for purchases: it merely when the rate is 2%.
In other ends; this aspect has loomed
large '
postpones and intensifies it.:
It
words, we capitalize the income at in recent years. The Treasury intensifies/ it because people do the market rate of
interest to and Congress have been
urged to
not understand why they must
arrive, at the value of income
away
worry,
which amounts to
to expect no
remained
value
stable
phenomenon.
which
interest
do this would
the. rate
influenced the rate
very
at
diminished food sup¬
is
on
To
of
rupt values which have remained
terest is
war.
ply arid that our clothds are be¬
coming thread-bare, yet the sta¬
"Liberty Bonds Accepted at Par."
because the interest rate
the bonds was higher than the
2%.
near
rate
years, the current rate of interest
has been extremely low.
This has
at
that
?■
whom the economic consequences
repair;
but to turn attention to this
This
was
the
because
that
suggested
-
<;-•
money
many
freeze
relatively
War I..//What does this extremely
have
.
deed be
Money
simple
as
have,"
and
is just surplus
in v which we: -have-'
If
engaged the property go through a process of t
through some error,
borrowing has occurred, outright current rate of interest was ab¬ revaluation.. Try to visualize the
After the war disruption on the organized exrepudiation would be the most normally high.
logical method of procedure since, there was a tendency for this rate changes; try to calculate the im-;
to decrease; a fact which enhanced pact upon labor and
after all, this would but be cancel¬
industry; toss;
The almost overnight shift from
the position of government bonds a pebble in a lake and try to
cal-;
this logical and defensible posi¬ ling a debt which we owe to ourin the market.
«'
culate the effect upon the differ-*
' f-v V, * '
VjvV
tion to the one that a public debt
jent": particles of water!
Paren¬
The Big "Catch"
is no burden, and that its size is
Post-war Interest Rates?
thetically, a long while ago, to
The big "Catch" in the above
of little consequence, is difficult
What may we expect of the cur¬ charge or take interest was made,
to understand.
The application of position is that the "ourselves" to
rent
rate of interest after this illegal; ■ those
who think black§
the borrowing and "pump pri¬ whom the government owes the
war?
While predictions are dan¬ markets developed with the NRAming" philosophies began in the debt is composed of more than
gerous, we would naturally expect or OPA should investigate what;
early years of the depression and 130,000,000
individuals,
divided
it to increase v towards what has happened then.
\
has continued to the present.
It into all sorts of classes, and upon been
corporations for reconversion and tistics
prove to us that we have
post-war development.
He went, an enormous increase in wealth
on to
say:
"It is clearly advan¬ and income.
tageous not only to the corpora¬
As if, however, we need some
tions but
that these
danger
the government and/or the banks
subject to much higher taxes than
was
0
A Dangerous Course
Some, indeed, have sensed this/
,
effort.
chase post-war goods, to start or and wear
pounds and gallons and
expand business enterprises, to yards;
the things which these
construct a home, or to buy many measure are of no
significance.
things which are not now avail¬ We increase our income four-fold
able.
Not only will we have this
by
calling
a
quart
a
gallon;
backlog of purchasing power, but twelve-fold by calling an inch a
the goods which it will command
foot; and sixteen-fold by calling
will furnish
jobs for our boys an ounce a pound.
It would be a
when they return.
bit perplexing to most of us to
In
/■:■/■
average
finance
to
pointed with pride.
seems
differently. termined
by the relation between
What could be more ungrateful alternative to
continuous priming Even if we pay no more than the
the amount people are willing to
than to say to these boys that, in has been
given no serious con¬ interest, this charge can scarcely save in
comparison with the de¬
the future, we expect you to help sideration.
be less than $5,000,000,000 a year
mand for funds.
It is an estab¬
to pay for the material which is
—a
sum
considerably more than lished
price determined by the
now being furnished to you?
To
the entire federal expenditures in
Economic Legerdemain
supply of funds in relation to de¬
secure
funds through borrowing
"
The
administration has
acted 1930.
mand for them just as the price of
does just that.
Once we become
upon the stated policy that a debt
Upon whom shall the taxes be corn is determined by the same
aware of this, much of the sales
of any magnitude can be support¬ levied to secure funds to pay the
process.
bally-hoo for the purchase of ed
through the functioning of an interest and the principal/ too,
Never in previous years of a
bonds/becomes pretty much an
economic legerdemain by which a once we begin to reduce the in¬
normal developing economy has a
empty gesture.
i/,; '
social income of any desired size debtedness?
The
diversity
of rate of
interest of 2% supplied an
Another reason why we should can be
pulled from the hat of the ownership of bonds changes fol¬ amount of funds
adequate for the
buy bonds, we are told, is that credit structure.
What a lack of lowing
the emergency and, to demand.
We have no reason to
thereby we are creating a back- understanding of economic ver- secure revenue to make payments,
assume this will be true after the
log of savings with whick to pur¬ ities!
We are presumed to eat the tax system may be easily man¬
.
than the great stock pile of liquid;
assets to which the Treasury has
the income from present issues is
must
same
to
entail
if
is
"catch" in it somewhere.
surdity.
by the
It
intelligent
any
logical conclusion
taxes
bur-
of finance.;
wonder
follow
since
simple mil-
affairs—a
izations, may be imperiled.
This
indeed be more significant
may
econ¬
than
with
compares
rate
on
our
that "we
slightly less
"Our national debt, after all, is an
debt owed not only by
our
in
Treasury
proud of the fact
financed
of
be felt
far beyond the end of hos¬
omy
ter
>
our
assured
it creates
peace" has special significance to
fiscal policy because its in¬
internal
for
public borrowing is that, not only,
it.
Had we but seen the wisdom does it
place no burden upon the
of the old adage, that an ounce
people but, as stated in the litera¬
of prevention is worth a pound of ture from the
Treasury, it creates
cure, and have acted accordingly,
prosperity.
The statements and
then those charged with the ad¬
practices of the Administration,
ministration
of
rationing could once it got under way, differ ma¬
have devoted their attention to
terially from the following state¬
priorities and a fair distribution ment of one qualified to speak for
of available goods without being the
Administration: "If the na¬
hampered by rising prices and tion is living within its income,
black markets.
r.
its credit is good.
If, in some
crisis, it lives beyond its income
Evils of Borrowing
for a year or so, it can usually
Not only have the evils of ex¬ borrow temporarily at reasonable
cessive borrowing ' been deliber¬ rates.
But if, like a spendthrift, it
ately ignored, but many unwar¬ throws discretion to the winds and
ranted claims have been made for is willing to make no sacrifice in
benefits to be derived from this spending; if it extends its taxing
method of securing funds.
On to the limit of the people's power
every turn and through medium to pay and continues to pile up
after medium we are asked to deficits, then it is on the road to
back the boys abroad and show bankruptcy."
dous sacrifice they are making by
one
Thursday, August 2, 1945
the
den;we owe the debt; to ourselves
and it is therefore merely a mat¬
addi¬
government.
invidious
most
internal
an
since, after the
will be anxious neither
embarrassment
war,; we
to be taxed
been
ac¬
•
by a
spokesman for the Administration,
moreover, that since the debt is
(Continued from page 533)
panded
have
*
*
in value
terest
.
n
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4408
162
increased
sorb
purchasing power
thereby help
to
stabilize
prices. The Treasury admitted that
most of the funds responsible for
balance
in
were
incomes
enterprise.
Congress,; at the time, was not,
committed, against
higher tax¬
ation, but did refuse to adopt the
program
of
the
Treasury.
It
overrode the President's veto, not
because of the principle involved,
but because of some of the vicious
and implications which the
President used.
.names
Those who advocate
managed,
a
economy, and have used some of
the devices indicated above to in¬
its
sure
inception, claim that
our
has reached a maturity
longer leaves a place for
private initiative and enterprise.
economy
which
no
The frontiers all have vanished!
*
'•
Mature
The
Well,
past; but
dence
continue to extend far beyond the
horizon.
We have been permit¬
ted to
few of the future pos¬
sibilities in the fields of aeronau¬
see a
yet
which are as
secrets, we would
military
need
blockbuster
other
no
annihilate the claim of
a
mature
ly!
A mature economy?
Even
.time, to
it will take
so,
accumulate
long
wealth
a
of
Mr. Ickes' $12,023,000,000,000!
■
.
has resulted and will
Xet's
tell
the
Let's tell
in
crease
caused
people
them
that
the
truth!
10%
a
in¬
prices from inflation
borrowing is just as
by
burdensome
as
10%
a
sales
tax.
that if we levy taxes,
through; but if they buy
a
bond someone, perhaps them¬
selves, will have to be taxed to
pay for it.
Tell them they can't
have that refrigerator or radio
which they have been promised
Tell
we
them
are
until this is done!
play fair with the boys;,
/'backing them
up" by buying
and
more
more
bonds will have
to
Do
we
a
want
back to inflated
prices and in addition make them
help to pay interest and principal
bring
them
bonds
on
which
with
we
the
to
are
returns
from
buy automobiles
and
to
refrigerators?
Let us begin
expend some of the energy we
have
used
bonds
sell
to
and
extension
of
size
to
which
make
of
the
one
The
of
amount
England
under
this
holding of
find
of
French
Thus,
Govern¬
tive
central
banks, non-interestbearing credits of £100 million,
or
20 billion francs, as the case
may be, to meet payments which
fi¬
the franc
sterling
has to make in the
area
and vice
area,
versa,
in
the year* ending jfeb. 28, 1946. As
these credits are drawn upon, the
local
involved will be
oaid into special accounts at the
Bank of England and the Bank of
currency
France held
party.
on
behalf of the other
Provision
possible
upward
is
made
for
adjustments
in
the size of the credits, if need be,
and also for partial or complete
settlement, according to a compli¬
formula
involving
some
payment in gold, of any net cred¬
its outstanding on Feb. 28, 1946.
It is generally anticipated that the
and
cated
Belgian
the
other
(including
currency
piling
participants so as to
claims
from
on one side or the other.
excessive
up
Under
financial
aid
provisions) can, in
general, be used only for trans¬
fers or payments within the coun¬
try concerned, although eventual
multilateral convertibility of such
balances is looked forward to in
the provision
that,
opportunity
shall seek to
as
offers, each party
permit its currency held by the
other party to be used for
making
payments in third countries, De¬
spite
the
restrictions
imposed
upon fiee convertibility of bal¬
and
ances;
related
provisions,
however, these agreements
no
inconsistent
way
Bretton Woods Fund
so
far
in
are
with
the
plan, at least
the "transitional period"
as
is concerned, since that plan
specified
that
during this period
members
"maintain
may
and
unfavorable
sterling area
grouping of
countries
which,
it
is
In this
connection
significant that each of the
British financial
agreements pro¬
vides that if the
here
to
a
monetary
participants ad¬
"general international
agreement," the terms
shall be reviewed with
view to
a
making any amendments that may
be required.
Essentially, agreements of this
character
cial
will
effect
normal,
have
of
the
benefi¬
facilitating more
relationships
commercial
between the
participants and their
respective monetary
difficult
areas
in the
transition
period ahead,
tight exchange con¬
trols and (in Great Britain) limit¬
ed monetary reserves, and in this
in the face of
should
respect
useful
step
of world
agreements
efit
to
considered
be
in
general.-
Such
be of special ben¬
can
Great
Britain,
whose ex¬
ternal financial position has seri¬
ously deteriorated during the war,
in
that
they offer the assurance
within limits at least, any
that,
current deficits which that
try
mav
some
face
in
its
trade
of the other
participants will
effect, by borrow¬
ing from those countries, rather
than by paying them out of its
be financed, in
limited gold and dollar
overseas
and
world.
within
maintain
close
discriminations
transactions
with
the
This advertisement
any
whether
out
this
fighting to preserve. Perhaps
they may want a chance to dem¬
onstrate that private industry may
be worth giving a
chance and
would not take kindly to plans
and procedures to relegate it to
•
the discard.
.
.
of the state
be impaired" is still just
patrimony
must not
.
.
Pnate
interntaional, as well as
action designed to
I American,
create
^
the
conditions
gradual
a
necessary
relaxation
strictive
into
undesirable forms?
more
Under
York
date of
"Times"
July 3 the New
reported
Aboard
lowing
in
sworn
of
Assistant
as
Secretary
Navy for Air aboard .this
aircraft carrier, it was disclosad
today. The ship is part of Task
Force 58 of the Third
ing the
Japan.
battle'
waters
'
overhead
took the
ners
oath
Officers and
fighter
Mr.
as
the
on
flight- deck.
in
battle 'dress
men
stood at attention.
The oath
administered
Vice-Admiral
Aubrey
W.
of Naval
was
the
by
Fitch,
propose
Deputy -Chief
Operations for Air.
first
time
comes
Secretary of the Navy had;taken
the oath at
"Mr.
mus
reserves..
sea
and in
Sullivan
L.
a
Gates, who
mony," moreover, did not refer to
the greater and continued borrow¬
ing upon which some would have
us rely.
No one can deny that the
private ownership and develop¬
sion
ment
of
have
resulted
our
•••
lands
in
and industries
an
economy
!
mi;
of
■:
mony
not
is
inescapable that
neglect
of
portance
fiscal
nor
payments diffi¬
July
on
under
no
circumstances to he
or
as
a
construed
as,
an
solicitation of an offer to
The offering is made only by the Prospectus.
,
Corporation
gnikniSx
Fund Bonds
and future of
ture.'
-
-X'.; t
1 •
i
impact
upon
our
the
may
be obtained only from such of the undersigned
as
registered dealers in securities in this State.
Allyn and Company
Sidlo, Simons, Roberts & Co.
Incorporated
of
.
j-*
Paine, Webber, Jackson & Curtis
our
present
economic struc¬
"
< C i
1021/2% and accrued interest
minimize the im¬
the
practices
A. C.
must
we
)
v"
)r -5. i.
:
>'
■
•;
1, ' r.; ' •'*
Arle-
was sworn
Paul H. Davis & Co.
no other
tlian to preserve -the patri¬
of the state.
The conclu¬
war*zone.
succeeded
in
Washington
of
(Closed) Mortgage 4
imperative, if for
reason
It
Assistant
an
home is in Washington."
of such securities.
need for the continued
encourage¬
ment of private enterprise be¬
was
in
is not, and is
are
planes
Sullivan
balance
Copies of the Prospectus
plan¬
for the future, the
off
....
"Carrier-based
fteyy
Fleet, plow¬
zone
the possibility that if Bri¬
Price
list of operations which the
fol¬
the
Due June 30, 1960
government.
the
from
Admiral
McCain's Flagship, in the Western
Pacific:
"John L.
Sullivan
was
ways
Government
pregnant
with
meaning
as
when it was first uttered. ■ "Patri¬
as
the
!
Sullivan Naval Air Sec.
(A Delaware Corporation)
enterprises
of
the
past have rarely been productive
of revenue and, when we scan the
re¬
practices abroad
prevail in the early
post-war years, and to minimize
the possibility of their extension
tain's
stability and growth
of
the
will
of this economy will be the future
patrimony
of
trade
Under-Secretary of the Navy
Enterprise
The future
*
exchange controls and other
as
The South Coast
First
of the
possible long-run
implications of the recent British
financial agreements with West¬
ern European countries
underline,
therefore, the need for appro-
$2,500,000
Mark the extent
revenue.
against
rest
On the other hand, there is al¬
offering of the following securities for sale
buy
the
con¬
These
coun¬
with
European
their
transfers
would
a
in the reconstruction
trade
of
bloc,
trols
transactions."
.
Western
while permitting'relative
which
.
for the eventual
or
and
freedom
for
.
econ¬
monetary areas in a closely inte¬
grated exchange and trading bloc
to changing circumstances
restrictions on payments and
transfers for current international
adapt
world
conditions, moreover, these
agreements might even lay the
basis for an enlargement of the
arrangement
883,125,000 Bel¬
gian francs, or the equivalent of
£5 million, while the amount of
sterling which the National Bank
of Belgium agrees to hold similar-
re¬
omic
a
epitomizes the "American Way of
Life" which millions of our boys
•••
and
currency.
ments agree to make available to
each other, through their respec¬
em¬
are
:/
Anglo-French
mutual financial aid
British
of
made available under the mutual
of the
is to take the form of the provi¬
of
outright credits rather
than
tween
prevent
currency of
country held by residents
adequately
the
they specify that the
the
one
not
are
exceed
not
for its
"The
balance.
sion
planned to which our
government has been
economy, socialism,
or whatever
able to command revenue in com¬
it should be called, in the open,
parison with some other countries!
and point out the devices, which
•are being used to bring it about.'
Need to Encourage Private
Let's
without
area.
culties
solved, thesea greements may be
extended beyond thet rartsition
period for which they were de¬
signed, and perhaps coupled with
attempts to bilateralize trade be¬
same
Let's air the idea
.
mutual
settlement
on
case
Agreement,
unparalleled
growth.
Socialist
devices to tell the
countries have paid high salaries
people the truth about the con¬
to products of this
economy to
sequence of excessive borrowing,
map and execute plans for them.
low interest rate, etc.
Let us for¬
The wealth and income of this
get the use of taxes for the pur¬
economy has been the patrimony
pose
of
social
"reform"
long
of the government; it has been the
.enough to use them at least par-;
source upon which it could draw
tially to stabilize prices.
ploy the
the
direction
for
sterling
In the
francs to be held by the Bank of
shall
under
either
need
late
vailing exchange control regula¬
tions.
party agrees
favor and that the Sveriges Riksbank will consequently accumu¬
area
the other
to
each
party's
arising.
It is widely anticipated that for
several years after the war Swed¬
en's balance of payments with the
sterling area will be in Sweden's
sanctioned by the pre¬
are
in
the
aid.
The Anglo-Belgian
Agreement, for example, provides
that the Bank of England and the
National Bank.of Belgium, each
acting for its government, will sell
the other party sterling and Bel¬
gian francs, respectively (or, if
need
be,
the
local currencies,
other than sterling and Belgian
francs, of members of each mone¬
tary area), against payment in
Belgian francs and sterling, re¬
spectively;
to
meet
payments
residents
that
other
ally at least, the balance of pay¬
ments between the sterling area
and Sweden may run up to any
the
mutual
,
overdraft facilities and, theoretic¬
nancial
have
Let's
vicious boomerang.
the
the
accumulate
to
most
which
A Vicious Boomerang
;
for
,
,
of
amount
currency
important and dis¬
tinguishing feature of the three
agreements lies in their provisions
result from
do not have to continue them.
we
The
fallacious fiscal practices; but
our
the
the
in
resident
'
on very similar lines, with
conspicuous exception.
No
limits are formally placed upon
sterling area, respectively.
We cannot undo the harm which
.
nationals
bal¬
any
one
infor¬
British
of
framed
ing assets in the sterling area be¬
longing to French nationals resi¬
dent in the franc area, and assets
in the franc area
belonging to
Hard¬
a
years,
The Anglo-Swedish Agreement,
which is to run for five years, is
mation they may possess concern¬
and that the need for
private enterprise has become ex¬
settlement
that time.,
The
available to each other any
to
three
for
run
outstanding at the end of
ances
make
Governments
to
provision is made for the
no
ultimate
economic
shall
French
economy
tinct.
but
par¬
purposes.".
is
ment
Anglo-French Agreement makes
this cooperation more specific by
providing that the British and
the explorations
.us
commercial
or
If
have paraded before
could but
direct and useful
serve
tics, electronics and plastics.
we
The
one
any
lem"
keeping capital movements "with¬
in the scope of their respective
policies" and particularly in pre¬
venting transfers "which do not
frontiers
mental
our
out
terests and to assist each other in
have plenty of evi¬
we
that
those of the
as
of exchange.
rates
way or another, with¬
"foreign exchange prob¬
arising.
Over and above
these limits, however, settlements
must be made in gold. The agree¬
move,
sterling
All three agreements are drawn
on
rather narrow lines in that
exceed
not
within which the balance of pay¬
ments between the two areas may
ticipants also agreed to cooperate
closely on exchange control mat¬
ters affecting their common in¬
our
and extensive
£5 million
(except by the net amount of ster¬
ling already owned by residents
of the Belgian monetary area on
the date the agreement enters into
force). These sums set the limits
the basis of the offi¬
on
cial
vanished?
ly shall
change control regulations on each
side, to facilitate payments be¬
tween the parties concerned, such
payments to be ultimately chan¬
neled
through special
accounts
maintained by each party on the
books of the other party's central
bank. The three agreements also
reaffirm the existing official rates
of exchange, namely £1 = 176.625
Belgian francs, £1 = 16.90 Swedish
Krbnor, and £1=200 Francs. No
changes in these rates are to take
place except after mutual consul¬
tation (Belgium and France) or
prior notice (Sweden),;1 and all
transactions between the parties,
so far as they involve a relation¬
ship between sterling and each of
the currencies concerned, are to
Economy Theory
frontiers' have
be in favor of the
(Continued from page 517)
In each agreement machinery is
set up, in keeping with the ex¬
be settled
geographic frontiers of
the future may not be as numer¬
ous
one-year
under
$5,000.
The proposed bill, how¬
ever, scarcely touched these funds
but did strike harder at business
of
payments within the
period of the agreement
(which is subject to renewal) will
and
inflation
53S
Boettcber and
Company
1.
Iiis
THE COMMERCIAL & FINANCIAL
536
"Full
but what
for
tant
on
request
;
international
flie Securities Salesman's Coiner
World"
By JOHN DUTTON
experienced salesman "qualifies'' his customers and pros¬
He has met and dealt with such a large variety
that almost instinctively he sizes them up—often
without his realizing that he does so.
He gears his selling procedure
to fit the type—and there are almost as many different types of
securities buyers as there are different securities.
Yet, people are
people and they can be fitted into certain broad categories. Knowing
people is an art that can best be accomplished through experiencebooks and articles have been written on the subject by the scoreThe
pects automatically.
of security buyers
learn best by doing.
and his ears as, much
world is his laboratory—people are his
good salesman learns to use his eyes
The
as
he does his tongue..; The
key board—sales are his
Here
just
are
"typing security
music.
in
WON'T
few broad categories that could be set up
a
EVEN THEIR BEST FRIENDS
buyers".
THEM!
TELL
You know him.
to "pick his own".
He's
usually opiniated about most things—politics, economics, the weather,
his clothes, the other fellow's golf game.
Some times he will listen
to
suggestion,
a
sales talk
but
without
a
he seldom takes a straight down the alley
suggestion of impatience.
You can't sell him
his ego if you desire
by the direct approach—you've got to flatter
his
business.
are
full of these birds.
for nothing.
He
it.
admit
wants
The woods
Some of them (most of them) would never
you
mili¬
and
begin the great de¬
on the
question whether or
this country is to take the
bate
not
final step in
this process of inter
national Collectivism, and fit its
economic system into the plane¬
tary pattern of unlimited govern
ment
to whisper in his ear that some insiders
the
which
world
the
of
unlimited
use
by continuous and
of military force
and economic power, while in our
domestic policy we are about to
to unlimited
committed
be
guar¬
antee of
employment and income.
Both these objectives require a
government of unlimited powers,
unrestrained executive authority,
economic
unrestricted
and
re¬
with
parliaments
and
legislatures
performing
merely
advisory or conversational func¬
sources,
tions, and abdicating to executive
agencies their power of the purse.
Well, there is some gain by way
of candor in having come to the
point where some of us recognize
that if our government is to play
the
role of planetary
new
police¬
and
global
Santa
Claus
abroad and provide full employ¬
man
at? home;
we shall have to
the Constitution and give
up trying to shape it slyly to these
purposes, I do not know whether
or
not
many
Americans
have
war
ment
against total government has al
ready imposed upon the entire
world.
7., ;■
scrap
power
-
-
I shall say
national
nothing of the inter¬
of
aspects
this
pattern
than
more
that are implied in the monetary,
tachment
agricultural and other agreements
in the new League of
Nations. All that I shall try to do
for
involved
is to spell out the plain
meaning of one of the underlying
ideas in this pattern—that of un¬
today
limited
government guarantee of
income
or
purchasing
power
has
under
marketed
been
national
international planning,
the
planned economy, social security,
full employment, guaranteed an¬
nual
wages,
and
international
stabilization, and has finally be¬
the
labels
changing
of
and
come
The fellow who wants to get something
economic
shall
we
which
The fellow who likes
part of
it, hearings will start on the Full
Employment Bill, which is the
Beveridge program for America,
and
but here is where you
is
tary agreements which implement
YORK 5, N. Y.
"It Takes All Kinds To Make A
it
ber, after having ratified in the
past few days the Charter of the
new
League of Nations, and the
\
Herrick,Waddell & Co., Inc.
55 LIBERTY STREET, NEW
because
us
compulsory
collectivism
which
has emerged from this war. When
our Congress reconvenes in Octo¬
Class A Stock
Circular
happens there is impor¬
the world-wide movement toward
$0.60 Convertible Preferred Stock
the
national
1,945
Employment" and Freedom in America
(Continued from first page)
A. DePinna Company
Thursday, August 2,
CHRONICLE
keystone
structure
may
sentimental
which
it
at¬
they have
early colonial antiques, f it
be that the American people
today, like those of Europe and
Asia, are willing to pay any price
for these things that go under the
of
security, and one no
be sure about that
steady process of de¬
moralization to which they have
name
longer
after
been
can
the
exposed during the past dec¬
ade; but they should not go into
this collectivist bargain imagining
that
free,
is
security
any
more
than freedom is free.
Failure
Nor
should
any
not share that new
of
paid your money and
made
your
choice, and all the
clauses of the contract must be
have
of them are to
carried out if any
be
What are they?
met.
Two Axioms Under "Full Em¬
ployment".
'
■
■
?•?"
agreement
rests on two premises which prac¬
tically everyone now accepts al¬
Notice first that the
most
has
of
axioms
as
One
nomics.
is
modern
eco¬
everybody
that
political right to an income
to
buy
an
adequate
standard of living, either by be¬
ing employed by somebody in a
satisfactory job at fair wages, or
running a successful business at
a
sufficient
a
fair
paid
profit for himself,
or
being
or health
pension by the govern¬
unemployment
an
benefit
or
ment. The other axiom is that this
right can be guaranteed only if
enough money is spent by private
citizens and government together
to provide the income required to
meet the desired
standard of liv¬
stipulation is
spend about $160
public
and
private
money to provide about sixty mil¬
lion jobs or businesses, public and
private, .yielding enough income
to satisfy the contract.
But this
stipulation is naturally subject to
change from time to time, and so
there are the further stipulations
that if private spending is not
enough
the
government. must
supply the rest, and if private
spending is too much, government
ing.
The
that
we
billion
current
must
of
money
ing
who do
delusion make
us
of living.
minimum standard
a
You
must offset
Experiment Will Be Costly
of the inter¬
of compulsory
collectivism, embodied simultane¬
ously in the full-employment bill
in
America
and the
Beveridge
the
to
at
or
As
a
it by collecting
from citizens
taxes.
scheme
social
"perfectly
neat
and
more
by borrow¬
this
quite
seems
com¬
the least ex¬
merely that
need not worry about the outcome
plan for Britain.
v
government assumes complete re¬
because in the end everyone will
.The very title—"Full Employ¬
sponsibility for the accounting of
find that the formula of full em¬
ment in a Free Society"—under
the community's money, control¬
ployment by unlimited govern¬
V The timid fellow.
He'd like to invest a few dollars but he's which Sir William Beveridge has
ment
guarantee is phoney and ling its expenditures, income and
not sure that he should.
He's never sure of anything—he goes put forward the British program
must fail.
Even some as shrewd saving, relieving the citizen of all
through life this way. If you follow up this type of prospect you're of national socialism from which
his budgetary problems, and leav~
as Winston
Churchill seem to be
liable to go half nuts yourself—and what you'll make out of his the Murray-Kilgore bill has been
making this innocent error how, ing everything else about his life
business won't be sufficient to pay your social security taxes.
and work as it was. If that were
copied, defines the issud and lets
ignoring or underestimating the
The suspicious type.
He doesn't believe it!
He's heard too the cat out of the bag. Step by new instruments and mechanism all there is to it, it might be
much about Wall Street, brokers and bond salesmen.
made
Why back step as he presents the attractions of
simpler
by
arranging to
power which total government
in 1929 he bought some real estate mortgage bonds and those dirty of the idea of full employment as
and its technicians have been de¬ have all private income paid into
so-and-sos robbed him.
Most corporations are run by crooks, the the aim of domestic and interna¬
the Treasury into a sort of supervising and perfecting to imple¬
stockholders always get a raw deal. If it hadn't been for Roosevelt tional policy for the masses he is
ment that purpose during the past social-security account for every
the country would have been swallowed up in the most God awful compelled to expose all the price
individaul and then having Mr.
decade, in America and England,
revolution you ever saw in your life.
Thank, heaven for the SEC tags, political accessories and gov¬ no less than in Germany, Italy and Morgenthau send each citizen a
ernmental gadgets called for in
the OPA and the Political Action Committee.
You can have his
check every month for whatever
Russia.
the fine print of the contract, and
balance the public officials figure
type too—if you want him—or do you?
No, the trouble with the pro¬ it would
it is clear that the same attach¬
be "proper for him to
The big wind bag.
He wants to talk about himself. He doesn't
ments come for the American as gram of full employment by gov¬ spend. That would at least assure
care how much of his time he wastes—and less for yours.
He will
ernment guarantee is not that it
for the English model of the gov¬
full employment in Washington;
get you into his office and as long as you'll listen to his stories
won't work, but that if you pay
ernmental millenium. It does not
but
a
benevolent * government
about what a smart fellow he is, and the big things he expects to
the price it will work so well that
matter whether or not the British
would then only come to the be¬
do someday—he'll give you a book full of it.
He may hand you
when you have paid the price and
ginning of its problem, and would
an
order someday, but what you will make out of his business people like them or have been
accustomed
to
them
by riding got it all you have left to wish soon have to invoke the unread,
you can also put in the kiddies bank—providing he doesn't
"lay
for is that it wouldn't work at all.
around the back roads to serfdom
unwritten or invisible clauses of
down" on delivery day.
Once you have set in motion the
in the1 early models of National
its contract.
" •.N,; yv.;'
/' ■ = .
The grouch. The world's all wet. He only does business with Socialism imported from Germany massive machinery of unlimited
First, of course, there are the
his bank, or his old friend Joe Zilch who has been an investment
to
make good its
since the time of Bismarck.
For government
fiscal clauses, since the whole full
banker of repute for the last half century.
Besides all unlisted
guarantee of full employment and
us the plain fact is that the polit¬
securities are junk—the country is going to hell—and who told
adequate income for everyone, it employment program centers in
ical accessories of full employ¬
the power of the purse, now en¬
you to call on him anyway.
is too late to
We'll take vanilla; you can have him
protest that you
ment cannot be attached to the
too if you want him.
/■ •••
;
'/'■■■'■ :'
didn't read the fine print in the larged to control not only of the
American chassis without a com¬
social contract.
It is too late to public but of the private pocketThe fellow who has a deal for you.
"Glad you called, come
plete alteration of its fundamental
book. If the State ii to determine
say that you didn't really mean
right in"., "Now just listen to this—here is the map—only need design.
V.
total spending, it must obviously
full
employment or even sixty
$50,000 to drill two wells".
Besides he's got a sure-fire hit in a
million
new tooth paste formula that will
jobs;
that
you
didn't begin by determining not only the
Requires Government of Un¬
put Colgate out of business—its
total national income, but its dis¬
limited Powers
quite intend that everybody who
got a strawberry flavor—the kids will love it.
Can he waste your
tribution, and end by determining
time?—if you let him!
can work must be employed when,
'
Ours was designed deliberately
Some day when this brave new world becomes better organized
where and at whatever the gov¬ individual income after taxes and
to limit the power of government,
how about an SEC to protect the security salesman!
ernment deems necessary or de¬ savings. Citizens might save more
by dividing it and neutralizing it
or less than is necessary, so they
sirable, .producing what the gov¬
through constitutional checks and
cannot be permitted to earn or
ernment wants, at a wage or prof¬
been granted a leave of absence
balances for the primary purpose
as
much as they please
it the government considers fair, spend
by the Association to join Mr. of
safeguarding the civil liberties
without
upsetting
the political
or that everybody must buy and
buying into a certain situation and he wants his profit QUICK.
High taxes or no!
His type are never loyal to any firm. Give him
ten profits and one loss and you will get a squawk so loud the echo
will ring in your ears for a week.
are
the mistake
of assuming that we
plete
and
treme."
Is
not
in
means
.
^
,
.
.
aria Salesman of ABA
Tales Red Gross Post
Appointment of Merle E. Selec¬
tman of New York, Deputy Man¬
and Secretary of the Amer¬
ican Bankers Association, to the
ager
staff'
as
A.
a
of
Red
Cross
special assistant to Frederick
of
Boston, recently
Carroll
named
for
the American
Red
Great
Cross
Britain
Commissioner
and
Western
Europe, was announced on July 24
by the National
Headquarters of
the American Red Cross in Wash¬
ington.
Mr. Selecman will leave
shortly for his duties abroad. Mr.
Carroll, who is Vice-President of
the National Shawmut.Bank of
Boston,
is
on
leave
of
absence
from his bank.. Mr. Selecman
has
Carroll's staff..
and
Mr. Selecman has been with the
American Bankers Association for
the past 18 years. In addition to
his work
Secretary of the As¬
sociation he is Deputy Manager
in charge of its Trust Division
and
as
director
of
its
Public
Rela¬
tions
Council. Mr. Selecman at¬
tended the Universiy of Missouri,
took his A.B. degree at the North¬
west Missouri State Teachers Col¬
Maryville, Mo., and his
Master's degree at Northwestern
University in Chicago. Prior to
joining the Association, Mr. Selec¬
man
spent ten years in news¬
lege
at
paper,
work
dom
protecting the political free¬
of
the
individual citizen
against the encroachment of the
State. Now, as the American mind
has been reclaimed by the spirit
ernment
or
the Midwest.
no
are
ends of gov¬
longer necessary
these
that
day
by
It is being taken for
enough.
granted that the original purposes
of this design have already been
replaced or supplemented by other
and
which
cannot
be
within the framework
of
desires
everybody
which
ends,
attained
and means
limited representative govern¬
ment
advertising, and » publicity policy
teaching journalism in certed
and
being told day
of Europe, we are
under
we
law.
are
action
and promote
In
our
foreign
committed to
to
maintain
con¬
peace
prosperity in the rest
consume
what the government de¬
cides is desirable at a price
it
determines,
or
which
spend or save
which the
applecart. The State must have
complete control of the net dis¬
posable private income, and prior
lien on it.
The withholding tax,
borrowed from Europe, and sold
It is then,
here with the Greek gift of "for¬
too late to realize or argue that
the standard of living is not pro¬ giveness" as a premium, is a de¬
vice perfectly adapted to this pur¬
portional to the amount of em¬
It not only converts the
ployment or payrolls or income pose.
income tax into an excise, and
or pensions
or wages and prices,
collects it under anaestesia in ad¬
but to the production of the things
vance
of spending, but makes it
want to buy,
his
income
in
ways
State decides is proper.
people
consume or
keep, with the least labor neces¬
sary
to get them.
explain
that
the
that
you
people
satisfactory
jobs
It is useless to
meant
merely spending of groups and individ¬
uals as the political
exigencies
get
can't
who
at
completely flexible so that it can
be
applied specifically to the
fair
should be employed or
wages
may
supported to
demand, without any
regard
constitutional considerations of
[Volume 162
'
equity
or
equality.
When it
is
further improved, as its energetic
merchandiser
Beardsley
Ruml
proposes, by abolishing the corpo¬
ration income tax or converting
nominal dog-license; the
individual citizen becomes merely
it into
a
tax-bearing animal, thoroughly
domesticated to growing continu¬
ous crops; of fiscal fleece for the
State to shear. Certainly there is
no other way to control the total
a
private spending necessary to pro¬
vide full employment. Under this
section of the contract, when the
State
borrows
from
citizens
on
Spending
Next in the contract is the
cure and chiropodist services, day
nurseries,
communal
feeding,
food-stamp plans, "homes of rest
and culture," "travel for strength
through joy," better meals for
Melanesians, more vitamins for
Hottentots, rebuilding the ruined
antiquities of Florence, planting
trees in Italy, and whatever (in¬
cluding continuous war for peace)
an ingenious and ambitious gov¬
ernment can imagine might make
employment
if
it
spent
your
money for you on something you
wouldn't buy yourself.
and
spends on a large scale to provide
full employment in war or peace,
it can even make the large bond
buyers pay the principal and in¬
terest on the debt held by the
small income brackets, by gradu¬
ating interest rates and income
taxes accordingly.
•
Supplies Restrictions
con¬
vide workers to produce the
Clause
.
So
we
come
and that
means
compulsory-
consumption clause, which is per¬
haps the key provision in the
whole program, for by it unlimT
ited government can outflank and
by-pass the perpetual peril of the
competitive market-place and the
hazards of the consumer's choice;
sumption. clause. After you have and for the same reason it has a
through your fiscal great appeal to business. It is al¬
machinery what the net dispos¬ ways much easier to do your mar¬
able private income of the com¬ keting
through
a
government
can
make
the
ultimate
munity is to be and who is to which
c o n s u m e r
take
the
product
have it, you cannot let people
whether he wants it or not. War
spend it as they please if you are
is
to
essentially and \ almost com¬
guarantee
full employment.
They might save it to hoard it, pletely a compulsory-consumption
economy,
where
the
unwilling
though you can probably prevent
that; or they might waste it in customer merely happens to be
The fullmany
undesirable ways, as on your foreign enemy.
liquor or on women who Should employment contract simply ap¬
be otherwise employed.
In any plies the same principle and the
same method to peace and to the
case you can't be sure that they
Those who
will spend it so as to purchase domestic consumer.
the
services
of
everybody
to made it said as much in plain
whom you have promised a satis¬ terms
many
times
when they
that it must make
them produce at least
more
something
than they are
permitted to
with the money it gives
consume
them.
The difficulty of
work
done
real
getting enough
and
getting
welfare-investment State either to
and
labor
repudiation or
or both.
If
camp,
historical
evidence
to
we
on
that, it would be easy enough to
the spending-expansion idea
of prosperity and the idea of state
capitalism by having the Treasury
send every individual a monthly
check for $100, which works out
roughly at the desired national
income of $160 billion. It would
be interesting not only to see how
many million jobs and how many
hours we got for it, but also to
hear the arguments that Marriner
Eccles,
Professor
Hansen
and
Henry
Wallace
would
make
against it. Yet if anything they
have been saying about the magic
of consumer purchasing power in
creating employment and produc¬
tion is true, there is no reason
why it wouldn't work, except the
simple
fact
that
most
people
wouldn't, so long as they could
buy anything with the money they
get.
test
or
later
a
community
that makes unlimited consumption
factory job, at the wages and kind
of work he wants, where he hap¬
asked
have
weeks past.
some
As
a
corporate
financing
that
took
place during July,
This develop¬
ment obviously taxed the facilities
of both investment bankers and
of fact, the apathy which
matter
currently envelopes the municipal
field
setba*x suf¬
the
antedates
full employment in war, why not
ing itself—its human capital along
want to do with theirs.
So
to
fulfill
the
the world ad
trick question:
"If
nauseam
you
can
the
of
political principle for unlimited
in
with its material resources.
you
full
peaee?" The answer is that
certainly can, if you are will¬
ing
to
have
the
Government
spend your money to buy goods
and services you don't choose and
can't
use.
But when it does that
it is merely putting a lot of your
spending money into other peo¬
ple's pockets, and it must take
the money back again in taxes,
or
it must make sure that, enough
of
the kinds of
things that citi¬
zens choose to
buy is available,
else
even
your
own
spending
money won't buy much groceries,
full-employ¬
have to stipu¬
late that control of consumption gadgets or government before you
are through.
may be necessary in the national
interest, by establishing a system
Work and Production Not
of priorities in the production or
Considered
purchase of consumer goods, as
well as rationing and price con¬
Thus we arrive, by easy and
trols, and some kind of allocation familiar
stages
at
the
final
ment contract you
a
employment
income
program
Any
guaranteedthat begins with
or
government as consumer or dis¬
penser of spending money or pur¬
fered by the market for govern¬
ments and the extent of the lat¬
portfolio managers, with the lat¬
ter in particular not being in posi¬
tion to give much attention to
ter
development is clearly detail¬
ed in our "Reporter on Govern¬
other
ments" column which appears on
another page in this issue.
of
sources
indications
Present
investment.
are
that Au¬
the tax-exempt field in the re¬
cent past, but the picture as a
gust will prove pretty quiet in¬
sofar as new corporate emissions
are concerned, with the prospect
that the municipal market will
receive much greater attention.
whole has been, and is, rather
dismal.
Some of the rather new
Debt Structures oi
It is true, of course, that there
have been
few bright spots in
a
offerings,
including
those
of
Boston, Mass., Philadelphia
School
District,
Hamilton
County, Ohio, arid Cincinnati
School District, admittedly did
meet with
mand.
cant
We are
the
not
was
of
wave
signifi¬
in
of
edition
1945,
30,
"Bond Structures of the State of
enough,
a
interest
in receipt of a copy of
June
Louisiana, its Parishes and the
City of New Orleans," a publica¬
tion issued by Scharff & Jones,
Whitney Building, New Orleans. ;
good investment de¬
This
however, to touch off
Louisiana,
Its Parishes and New Orleans
the
market generally, and the result
is that not much progress has
booklet is misleading to the ex¬
been made in clearing away the
tent that it does not adequately
sizeable
describe the varied scope of its
inventory that existed
following close cf the Seventh
War Loan.
title
The
contents.
of
this
While
latest information
Because of this situation, deal¬
interesting
its
essential
is to make available the
purpose
,
with respect
ers have
been extremely cau¬
tious in bidding for new issues,
with
the
tendency
being
to
to the outstanding indebtedness
making
other features combine to great¬
levels
which
commitments
do
not
take
account the possibility
of
at
ly
into
existing stalemate
may
State
the
also
of
its Parishes,
Orleans, several
and
New
enhance the value and sig¬
nificance of such data.
that the
continue
While space
voluntary competitive economy—
is a simple and primitive
bargain.
merely that if most men
in any community
expect or com¬
considerations pre^
giving an adequate re¬
study, we understand
that the bond house will be glad
to send a copy gratis, upon re¬
quest from either dealers, institur
pel
tions
elude
our
view of the
It means
a master—man or government
individuals who have
or
interest in
—to
promise to employ, support
or
protect them as a matter of
legal or political right, they must
phases of forced labor, which is
common
to every country with obey that master, do what work
chasing power to the masses must
move
from
the
now
familiar
an
Louisiana municipals.
Requests should be. addressed to
Scharff & Jones, Whitney Build¬
ing, New Orleans 12, La.
he makes them, live and move
government in Europe and
where he tells thefn, eat, wear
Asia, and came cfose to us here
and buy what he tells them; save
in America during the war. ■ At
what he
tells
them, and ulti¬
the hands of the State, security
and serfdom are ultimately and mately believe and say what he
tells them. Even if they do all oi
inevitably identical as economic
that, in the end their master can
facts, and the political forms in
which they are dressed up are guarantee support and security tc
them only if some of them are
unimportant.
able and willing to produce by
I said that forced labor was the
their work somewhat more than
final clause of the full-employ¬
the master permits them to con¬
ment contract, and it is perhaps
sume for themselves.
And since
enough; but it is not quite the those who are able to
produce
last paragraph. Even in the labor
more
than they consume won'i
camps of Russia or Germany men
keep on working forever to sup¬
might
think
and
talk,
and port the
rest, the standard of liv¬
thoughts and words may affect
ing must ultimately descend tc
their own and others' work for
total
investment or control of clauses
of the
full-employment
development of new competi¬ contract, the labor and manage¬
tive products.
Since the jobs to ment
and
investment
clauses,
be filled are not always likely, which cover the
problem of get¬
especially after this war, to be in ting the work done that may be
the same places as the people who needed to
produce the groceries, the State which employs and sup¬
want to work at them or buy the
gadgets or social gains for which ports them. So merely as a mat¬
products, the Government must the private, and public income is ter
of
good
management and
also be able to move industries, to be
spent. These provisions are equipment, Government has to see
labor or markets about (here or
mostly in fine print or invisible that they are provided with the
abroad) if it is to balance spend¬ ink, legible to the naked eye only proper ideas and the right words.
ing with employment. So the dis¬ when the heat is turned on, be¬ Freedom of speech and thought
posal of surplus war plants, and cause the kind of contract we are are the final sacrifices to the Su¬
their voting populations, as Well
talking about is for full employ¬ preme State which are stipulated
as Government control of foreign
ment or full payrolls, and the po¬ in the full-employment program,
trade will probably prove to be litical
preamble makes no men¬ but by the time they are called
important footnotes to the full tion of production or work.
It for, they are rarely missed.
employment contract.
assumes that they are mostly su¬
So I can sum up for you the
Beyond all this, there is a much perfluous synonyms or natural written and unwritten conditions
more
crucial stipulation in the accompaniments
of employment of the new social security con¬
consumption clauses of the con¬ and payrolls. In fact, the sequence tract in these terms: The Govern¬
tract.
Even with complete gov¬ of events by which the spontane¬
ment will give you full employ¬
ernment management of private ous generation of prosperity is ment and
guarantee your income
income, the control of private supposed to take place is that provided you will let it use your
plus ; private
spending and consumption is so public
spending money as it pleases; if you will
hard at best, and individual citi¬ makes payrolls, which make em¬
buy for your own use what it tells
zens
are
so
stubbornly bent on ployment, which terminates auto¬ you, at the price it fixes, or let
saving or wasting their money in matically, after a lapse of time it do the buying for you; if you
their own way, that it will be im¬ and overtime, in the production
will save as much money as it
possible for Government to make of useful goods.
^-■%
,;/y
says and
let it invest it as it
good on its promise of full em¬
Most retail merchants as well pleases; if you will work at what¬
ployment unless it spends more as government officials seem to ever it says, when and where it
of
their
money
for them and believe that prosperity is brought says, and as much as it says for
makes them buy or consume what
by the spending stork; but indus¬ what it says you can be paid; and
is good for them whether they trial
management, like the mid¬ if you will hear, read and think
want it or not.
Besides, the ca¬ wife, has a more realistic view of what it tells you and keep your
pacity for private consumption is the process.
It knows—and this mouth shut. Beneath the elab¬
inevitably limited by time or war drove the lesson home—that orate and complex apparatus of
boredom, but the possibilities of when Government starts issuing fiscal and monetary policy, social
public consumption are boundless. to
anybody unlimited . claims to insurance, price and wage fixing,,
They include not only, the tradi¬ consume the
product of other rationing, conscription, and prop¬
tional
pyramids,
post
offices, people's labor, and undertakes to aganda by Which it is operated in
parks, playgrounds, public works redeem
them, it has to provide the modern State, the compulsory
and domestic or
foreign TVA's, the product, too. To do that Gov¬ collective economy — which this
but also medicinal,
deptal, mani- ernment has not only got to pro¬ contract calls for to replace the
new
the
j
,
contributing factor to
the poor showing in the municipal
field was the veritable flood of
rather dull affair and has been
government must end by consum¬
to prefer to live. A free
competitve market for consumers
or
producers is an insuperable
hazard to ar full employment pol¬
icy, because consumers do not
spend intelligently according to
any national plan, workers don't
change their occupations, skills or
locations easily or freely, and in¬
vestors and enterprisers have their
own peculiar notions as to what
they want to do with their money,
according
to
what
consumers
pens
„
Another
avoid
Security and Serfdom
Sooner
for at least the remainder «f the
summer season.
ernment bond department, which
is another way of saying that it is
such for
enough tools to work with in or¬
der to make good the claims to
consume, which it
issues, is the
ultimate dilemma tfrat drives the
the
News
The municipal market continues
under the influence of the gov¬
a
;■
doubt the
in the full-employ¬
ment contract to the
prod¬
uct, and manage and direct their
work, but also supply their tools;
inflation
Compulsory Consumption
The
determined
-
537
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4408.
the
subsistence
level
community can beg,
steal
enough wealth
from
outside
some
borrow
and
tanooga, Tenn., debt equalization
program, holders of more than
96%- of the total of $6,135,000 debt
involved
had
exchanged
their
bonds in accordance with the plan.
laid
down
So,
that
when
we
we
in
and
fiscal
are
of
been
Statism
as
a
in
told
today
which
ma¬
1956, 1957 and
last chance to get
it.
*
In
a
notice
issued
date
under
creditors
of the Province accept
provisions of the debt reorganiza¬
tion
offer, dated July 16 last, and
implement such approval by de¬
positing their holdings, accom¬
panied by the appropriate Letter
of Acceptance and Transmittal,
at any of the following places:
••
(a) at the principal office of the
Imperial Bank of Canada in any
of the Cities of
Winnipeg,
Canada.
Montreal, Toronto,
Edmonton
the
in
couver,
or
(b) at The Bank of The
York, N. Y.
■
(c) at Lloyd's
Lombard
l England.
Van¬
of
Dominion
0vv/:7-v -v:-7
'
hattan Company, 40
will be
it costs and this!
It
;
of July 20, E. C. Manning, Treas¬
urer
of
Alberta, requests that
freedom here at home,
our
suffi¬
Deposit Holdings
Under Refunding Offer
tc
the
be
original purpose
has been fully
the city had
as
To
has
and
may
Southern
Alberta Creditors Asked
America make a
worth whatever
the
1960.
Beve-
monument
price.
v
full-
the
stand for
pay
the
program
ture in fiscal years
dogma of unlimited govern¬
ment during the past decade is
already collapsing into a rubble
of bankruptcy and a brutal strug¬
gle for power, and we have noth¬
ing to hope from it by way of
peace or prosperity. Whatever the
rest of the-world may decide to
us
for
changed bonds. These latter
the
do, let
con¬
cient sinking fund assets to take
care
of
the $237,000 in unex¬
The colossal structure of in¬
erected
the
completed,
must choose between ful*
ternational
agents
Actually,
labor
employment by this road or dic¬
tatorship and serfdom, I say you
must take both and will get both
for both
are
stipulated in the
bond of this bargain with com¬
pulsory collectivism.
I am not
discussing what we should do in¬
stead, but I say that anything or
even nothing would be better than
that.
was
report made by city
metropolis.
oi
to keep
the
a
officials to Wainwright, Ramsey
& Lancaster of New York City,
the show. This is what has
happening in Europe anc
Russia in the past five years, anc
it will begin to happen in Eng¬
land and America if they follow
road
information
This
tained in
up
employment bill
ridge program.
June 30, 1945, which also
marked termination of the Chat¬
been
the
r
At the close of the city's fiscal
year on
the
unless
source
Chattanooga's $6,135,000
Equalization Program
Completed
Man¬
Wall St., New
;
Bank Limited, 72
Street, E.C. 3, London,
Thursday, August 2,
THE COMMERCIAL & FINANCIAL CHRONICLE
538
Some
The
Sterling Bloc Fool
And Foreign Trade §;
(Continued from page 514)
one
said Britain, in
once
football
match, plays courage¬
ously and fairly, but she always
a
has her eye on the box office re¬
ceipts.
It is high time we too
kept at least one eye on the box
office receipts. ■
■'<//'.■• ;
hard currencies acquired in excess
of the quantities required for im¬
of military and essential
goods be surrendered to central¬
ized
control
in
Britain.
Some
ports
,
countries in the sterling area, be¬
cause of their gold production, our
1945
1926 and 1940. Imports from
States; amounted to
years
United
the
$625,400,000 and
amounted to
approximately $1,327,500,000. The
trade balance in favor of India
up to 1940 was $702,100,000 and
approximately
exports to the U. S.
The time
js drawing near for purchases there or*the expendi¬ constituted the dollar surplus on
increased settling Lend - Lease accounts. tures of our troops there, or for normal trading. I was unable to
Bank loans will cushion the shock. foreign trade. Due to the increase What are we
going to get for the some other reason, have had sup¬ cite the figures for the years fol¬
These figures are hard to com¬ in its capital, the Export-Import billions of goods
shipped to our plies of dollars exceeding their lowing 1940, because after that
Bank will be in a position to pro¬
wartime needs.
Other year, England took the surplus
Allies?
The cost of Lend-Lease essential
prehend. They are astronomical.
'
will
'
shrink,
Export-Import
the
thereby making possible
#
If
these
of
when all
and
pro¬
grams hre
of foreign
consummated, the total
gifts and credits still
available
to
and
lands
foreign
break-down
would
peoples
as
follows:
$21,500,000,000
1,300,000,000
Bretton Woods____
6,000,000,000
Increase Capital Ex¬
port-Import Bank
2,800,000,000
Lend-Lease
—
financing.
vide
enable
to
In this way, we
devastated countries
war
It
$31,600,000,000
is
these
high time
against
sums
evaluated
avail¬
we
our own
Can we
able American resources.
gaff? And the afore¬
said aid to Europe and Asia may
not be sufficient. There will also
the
stand
direct
needed
be
government
post-war credits to our Allies.
The Johnson Act will be repealed
and private loans will be made to
foreign municipalities and com¬
mercial entities.
Is
well
our
relief
of
and
re¬
Can
inexhaustible?
habilitation
really, without danger to our
we
yield to all these re¬
quests and importunities for aid.
economy,
Can
offer
we
World?
the
nurture
and
feed
The
breast to
our
problem is a vexatious one. You
traders must help solve it.
:
We may not be able to square
off actual aid with all these com¬
We want to cooperate
mitments.
in
wholeheartedly
healthier and happier
building
a
world. We
have the will. Have we the power
illimitable
and
and
all
to
permanent
the
become
ever, to
almoner
how¬
resources,
who
sundry
means to
stand the strain and drain?. Re¬
Have
apply?
,
the
we
member, meanwhile, we fight in
the Pacific—with its tremendous
cost of life and
Then
out
limb, goods, prod¬
and services.
ucts
v
if we cannot carry
promise to France^ Eng¬
too,
our
land, Holland, Italy, China, Rus¬
sia, Greece, Czechoslovakia and
others, in the midst of our war
and
post-war necessities,
after
leading them into a mood of re¬
liance
and
expectation then we
disillusion,
disappoint¬
ment and shattering of good will.
created
•
Time
Measure
to
It is time to
stick"
the
their
wounds and walk again—to trade
again—to return to prosperity.
reconstruction
i
own
role
our
own
our
Must
and "yard¬
measure
we
almoner but
as
house?
There is
bit to
a
our
old
saying,
J"Love your neighbor, yet pull not
down your hedge." Of course, our
attitude
should
an
not
heedless selfishness,
be
of
one
That would
be not only bad morals but bad
economics.
would be
est.
a
The
;
happy
medium
conserve
our
ener¬
gies and strength in order to help
our
neighbors in want and dis¬
tress1.
y.;,.
We
for
cannot
all, to
make
can
all
allow
too,
ourselves
<
supply raiment
point where we
naked.
I'm
appeal
ourselves
feel
sure
benevolence
We
too,
sustenance
for
to
starve.
all
certainly taking a
by British is lamentably
She seeks to exculpate by
offered
weak.
saying v that ' the Canal is owned
by a French company but she
fails to state that Britain is the
unless others in the world—
our
potential customers —- grow
strong and prosper.
channels
of
trade between ourselves to be not
only reopened but widened, deep¬
ened, and maintained.
-
of
Much
45 bil¬
over
has
it
Lendshot
been
destroyed or consumed but
portions remain intact and will
have potential peace time value.
away,
value
tools
million.
to
title
reclaim
to
what
recalls, as
when one
inevitable, that England owns
it is
Egypt, body and soul. She could
easily procure the Egyptian
the right
remains, or ask
Lend-Lease Cancellations
How
much
Lend-Lease
ac¬
have to be cancelled?
counts will
That is
of
//
burning question. Eng¬
land desires, naturally, to cancel
as much as possible.
Payment for
a
explosives, planes, tanks and jeeps
that
have
disappeared and for
food that
has
war's
consumed
been
in
will be liqui¬
dated and charged off the books
as
a
war
casualty.
This might
the
process
compete finally with American
industry. It includes for example
locomotives
and
transportation
equipment, and planes that can be
converted
58,000 tools were sent to Britain
under
Lend-Lease.
They were
later sold
at
civilian
to
Some
uses.
outright to that country
and under circum¬
discount
a
stances that caused
quite an out¬
The Kilgore
mark,
when criticized for his
"random" passages:
"I have left Committee has expressed marked
unsaid much that I am sorry I disapproval, because it has been
did not say, but I have said little discovered that for ;a cash pay¬
that I am sorry for having said-L ment of $31,500,000. Great Britain
in Washington.
cry
pretty well on the wholb,
thank you!" I feel the air should
be cleared if we are to reach an
and I
am
I
understanding.
be accused
may
secured these machine tools which
cost
of
will
England
surdity.
ab¬
out
physi¬
come
maimed
holocaust
this
an
cally and greatly weakened eco¬
nomically. She alone realizes how
narrow
was
the survival, v The
$166,000,000.
the dollars for this
England found
purchase with
amazing alacrity.
by some as being an Anglo-phobe
but I shall dismiss that as
In
instances,
many
behavior
bears
semblance
a
England's
remarkable re¬
Dickens'
to
famous
character, Scrooge.
Her tactics
hardly put us in a frame of mind
to be lenient when it comes to
settlement of
Lend-Lease.
world, including the United
States, will be the poorer if Eng¬
land cannot play her full part in
Frankly, England is not following
the admonition of a great East
world's recon¬
she has been
finger into your paper lantern."
But maybe I'm talking through
my hat about
settlement. Some
the
the
of
task
Because
her
foundations,
she needs and must have our help.
But
such
condition should not
to
shaken
blind
and
and
shortcomings
to
us
faults
very
preclude honest criti¬
cism.
Counting
The
recently—July
Transatlantic Edition
Vansittart
Lord
the
18—in
Approach
House
Mail," spoke
of the London "Daily
of
sentimentin
than
the
tween
English tongue'."
to
at
level,
reach
indeed
caution
to
his
lessen
his
"counting
approach.
Lend-Lease
ated
That is
But it would be well for
Vansittart
Lord
sweet
our
has insisted that all
shipments be evalu¬
1941
a
stabilization
price
although the goods may
England in 1945. The actual
cost of Lend-Lease
goods has gone
from 25 to 40% since the 1941
period. In some food instances,
cynics
on
the
goods
18
and
England
the
have
billion
of
services
since
increase
1941,
in
"subsidized
Nevertheless,
Lend-Lease
supplied
we
are
out
Thus,
we
we
cost.
each
dollar
of
these 18 billions with upwards of
say
will
ever
no
be
poke
payment
made
your
whatso¬
Lend-
for
Lease, and that it will just be a
colossal bookkeeping fiasco. Some
say "it is better to give than to
lend, it costs about the same!"
But, sticking in the eye of the
traders like a cinder
American
is the British Sterling
Area Dollar
Pool.
On the surface it seems a
legit¬
But the temp¬
tation to use it as a petard to
hoist
British trade to the dis¬
crimination
of
American legit¬
imate arrangement.
interests
is too
strong to resist. I have protested
some of the abuses
of this Brit¬
trading
imate
Empire Dollar Pool to our
Department,
In part,, the
reply
received
from Assistant
Secretary of State Clayton is as
ish
State
follows:
so-called
"The
dollar
in
June
sterling
area
came
defeat of France in order to con¬
(and
other hard
currencies) as they
became available so that the dol¬
serve
lars
United
would
States
be
dollars
available
for
the
Thus, in addition to the expan¬
purchase of military and essential
another 25 cents or more per dol¬
of the lending facilities of
civilian goods.
All British coun¬
lar presenting Great Britain, on
tries
Export-Import
Bank,
we
except Canada and New¬
a silver platter, as it were over
foundland instituted foreign ex¬
passed the Reciprocal Trade Bill,
change controls requiring that all
providing for wider tariff cuts, $4,500,000,000.
sion
the
cer¬
has
the
reduced
have
in those partic¬
It has, of course, in¬
sales to other places
made
ular places.
creased
in the
has
our
This practice
sterling area.
reduced
not
which
sales
exporters might other¬
the
total
pur¬
of American goods
chases
by all
area countries taken
as a group, but it has made pos¬
sible the allocation of dollars to
sterling area countries on the
the sterling
of
basis
relative
facilitated
dollars
for
need
has
and
of
conservation
the
the
importation of
military
and
essential civilian
needs. The practice has therefore
reduced the burden of lend-lease
aid
on
the American taxpayer."..
"You
what the position
ask
of
Department is with ref¬
erence
to this pool.
The State
Department regards the general
form and purpose of these sterling
areas
exchange controls;; as ap¬
propriate and necessary to the
successful prosecution of the war.
Dollars in the sterling area are
scarce, and they have had to be
the State
allocated to the
other
other
British
by
by
under
her
war uses
like any
deliberately
and placed
were
us
seized
England
England then
control.
credit in pounds and
pounds. In the
reply sent to me by Mr. Clayton,
I was given the additional figures
India
then
froze
on
those
the international trade balance
with India for the years
1941 and
figures
1942 but I was refused the
and 1944, "be¬
regulations pro¬
publication." • One
would imagine that the Japanese
Intelligence
Office
were
fast
asleep.. How in thunder the '41
and '42 figures can be given and
not the '43 and '44 figures is quite
beyond my comprehension^ How¬
ever,
these two years—'41 and
'42—add to India's surplus dol¬
lars $57,021,000, making a grand
surplus of dollars as of the end
of 1942 of $759,121,000.' It is also
impossible to secure any account¬
ing of the dollar balances due
for the years 1943
cause
hibit
> Security
their
>
India
trade
her
on
after
us
with
balance
British
from
1942
thorities.
au¬
,
India has been selling and
4
ship¬
ping us in the last few years jute,
mica, manganese and other stra¬
tegic war materials. These latter
shipments to us may run up an
additional
surplus of over 200
The total credit balance
millions.
due
India
likelihood,
has, in all
mounted up to one billion by this
time. It is difficult for any coun¬
try, such as India, to support an
international
trade
so
slanted.
commodity.
That The result has been to emphasize
and
underscore the inflationary
pre¬
vented waste and has reduced the movement rampant in India today
drain of lend lease on the Treas¬ due to shortages of goods of aU
India
needs
American
ury of theAJnited States. For the kinds.
post-war period it is part of our products and needs them badly
commercial policy to see restored but India has been deprived of
the
right of foreign buyers to the dollar with which to buy
select their sources of supply, so American productivity.
England,
scarce
allocation
has
undoubtedly
.
that private industry can thrive
and American goods and Ameri¬
exporter^ can compete around
the world upon the basis of the
excellence
and
price
of
their
goods. We believe that exchange
controls on current transactions,
however necessary in wartime,
are restrictive of free competition
can
the basis of commercial values
on
of free
restrictive
therefore
and
enterprise, and that they tend to
international
create
want
to
ill-will.
We
them ended as soon
see
given
India
credit
in
pounds for the dollars and then
having frozen those pounds, forces
India to deal well nigh exclu¬
sively—for practical purposes—in
British goods,
if they can get
having
,
Britain has not the where¬
them.
withal
or
to supply either consumer
capital goods needed in India.
She thus plays dog-in-the-manger.
She says to India, "We won't let
you
buy American goods and we
haven't the
supply
goods with which to
therefore do with¬
you—so
as
out."
be
exchange between the dollar due
India and the English pound but
it is likely that England turned
a
neat profit on that part of the
transaction as well.
Incidentally,,
England expects India to accept
for the pounds thus frozen a long
practicable. How soon that can
done no one can say at this
time.
The fundamental problem is
the scarcity of dollars in the hands
of foreign owners.
which
than
a
In some coun¬
have
dollars
more
before, this will not be
problem.
But in others—and
ever
Great
is
Britain
one
of
them—
the probability is that the supply
of dollars will
be considerably
less
needs
total
than
are
short
we
of
uance
for
expect contin¬
foreign govern¬
may*
some
mental control of trade."
I
con¬
a
.
.
credit
great admiration for
Will Clayton. He is doing a good
job but he is a tyro at it as yet.
I hope he realizes, however, that
the
British
Foreign
Office
is
adept
in offering explanations.
They are the Houdinis of the dip¬
our
Department may not prove
a match for their wanglings
and
their talented sophistry.
us
face
conditions
porters
in
facts.
I shall take
confronting
two
our
countries:
ex¬
India
and the Union of South Africa.
In my protest to the State De¬
partment, I gave a list of imports
and exports passing between India
and
our
own
a
the
of
rate
rate
of
in¬
Closed
to
Us
low
j
terest.
The
India
Prior to
Market
the
war,
Japan
was
ja
large reservoir upon which India
could draw for goods, merchan¬
supplies. Now
systematically pound¬
ing/Japan
to
pieces,
America
might well step into the breach
that
we are
and
act.
But,
Pool
a
countrv between the
a
substitute
for
that
supply after the war.
should the
Sterling
Bloc
continue^ as sure as you're
foot
India
as
of
source
high, American trade with
be stymied and
effectively closed to
will
market
Britain
nounced
Conditions Confronting Exporters
Let
at
know
dise and all sorts of
.
have
lomatic world and I fear me
don't
1
term
Whenever dollars
siderable time.
State
into operation
and July 1940 after the
pool
in
businessmen
sterling area countries for
purchase in the United States of
goods deemed non-essential and
tries,
Pool
British Sterling Area Dollar
up
the advance is 50%.
sage—"Never
Indian
be¬
common
of
'users
operation of the sterling
area
dollar pool has, necessarily,
reduced
the
supply of
dollars
to
the
in
gave
"The
wise
!
Pool.
remarks may cause quite
a fluttering in the dove-cotes but
I shall not be ruffled. I am re¬
minded of Samuel Butler's re¬
to deficit areas.
areas
American
for compensation.
pounds through the Sterling Bloc
My
India
available
';
wash
won't
supplies of dollars. The British
Treasury has accordinglyy trans¬
ferred the dollars from surplus
tain
stockholder. A slight reach as ;high as 80%. What of
She begs off also by the remaining 20%. The English
saying that the tolls must be paid are famed as shrewd traders. This
in Egyptian pounds and she lacks 20%
consists of industrial ma¬
such currency, an excuse which chinery and materials that will
oversight.
dollars due India and
Their
We still
them and
to
placed them,
Imperial Pool. Jn.
words, the dollars owed to
countries in the area have had to
make essential purchases in the
United States in excess of their
effect
marked
a
675
been
Kingdom re¬
future exports.
upon our
ma¬
million thereof.
have
will
have
has
date
The United
ceived 200
use
Lend-Leased
of
principal
England
our
per
the
The excuse
hand that feeds one!
house"
to
require
That is
nip out of the
charges on British ships.
We,
desire
lions.
During the same pe¬
the United States LendLeased $9,000,000 in Panama Canal
riod,
country
hunger.
we
redeploying
and equipment to
men
the Pacific?
and
food
continue, that we
want to bring balm to a shaken
and suffering world. Such action
might even be deemed self-inter¬
est, inasmuch as we cannot pros¬
We
fighting
"sweet".
not lavish
who
can
on
Anglo-American relations and
"There is something more
•;' said:
suffer cold.
We dare
on
so
the
Canal tolls
as Suez
American
ships
$11,345,390,
of the war's
Before V-J day,
Lease may mount to
chine
But, in
all this enlightened
generosity, have we not the right
to expect a recognition in return?
For instance, is' it fair dealings
for
Britain to exact, from-, the
start of the war to January 1945,
reasonable self-inter¬
We must
date is about 15%
to
total cost.
The
Tolls
Suez
struction.
needs,
not look
help
we
—
whole
,
productivity, not only
our
against
Ugainst
Cost
the
of
wounded" nations to bind up
UNRRA
Total
task
immense
the
begin
has
not
openly
that
us.
.
an¬
her trade policy for the
or
even
the
post-war
period, except that Prime Min¬
ister" Churchill,
in referring to
British post-war trade has said:
"Everything will be done to pro¬
mote
international
trade,
but
present
Britain will not
give up'its rights
safeguard our balance of pay¬
ments
by whatever means are
to
18181 Siiii
Volume
Number 4408
162
necessary." Apparently,
will
THE COMMERCIAL & FINANCIAL CHRONICLE
holds
No
export
struggle
for
such
no
the
in
barred
be
for
relaxed
will not be
allocations
required
are
Then
there
is
made
are
various
to
erations of the Sterling Bloc Pool.
Lord Keynes, in a memoran¬
involve materials where there
dum to Secretary of the Treasury
Morgenthau, in October last, said
that the Sterling Bloc Pool should
are
be
maintained
shortages
South
Furthermore, there is an oft
neglected section of the Bretton
Woods Pact which would give
England a transition period of
India
countries
other
Conflict
of
Woods
Bretton
may
.
and
the
hoard
cue
Case
of
or as
look
the
at
it
is
us
production
was
Africa
pay¬
descend
because
ships.
That
of
the
dearth
of
difficulty
itself,
ministration
and
direct
as
will
contact
be
will
be 'made
with the shipping companies. The
Shipping Administration will
allocate
are.
we
two
can
categories of goods
send
to
her.
There
are goods under general license,
which includes norncritical, non¬
essential
goods
such
as
crockery,
plastics, glassware, cosmetics, alu-'
minum,- jewelry, -hand bags;- etc.
a
of
Also
dum
is
a
statistics
could
be
ever
gotten up I believe that
down.
.
4
"•?
:
1
-■
,
.
as a
Yet
28V2.
*
*
*
•
;
;
Auto stocks all look lower,'
The bellwether of the decline
will
be
probably
Motors.
General
But the minor auto
stocks, like Willys Overland,
look up.
So if you're inter¬
ested
in
centrate
better
motors
con¬
the
so-callpd sec*
stocks. Incidentally
on
more
lost between the ondary
White Motors, which we're
Spring and Labor Day in 1929
long of, is one of the better '
than made.
actors.
Latter was bought at
#
#
♦
29^2. Stop remains at 28.
;
Conditions are similar
money was
Street, Chicago 4,
available
memoran¬
Howell Electric Motors.
on
to¬
New England Public Service Co.
*
—Analysis—Ira Haupt & Co., Ill
Broadway, New York 6, N. Y.
*
*
Y.;
■.
I,
■■■'
day.
Group after group is
Everybody knows the air-'
beginning to mill around. But
At least
what is just as important, is planes are through.
that stocks within groups are everybody in the customers'
Pittsburgh Railways — Current
study—First Colony Corporation,
70 Pine Street, New York 5, N. Y.
Belief
rooms.
also
that
is
the
^
Scovill
Mfg.;
Inc.;
Alabama
American
Shoe;
Douglas
Mills,
The
the
Co.;
II.
Robertson
Co.—Memo¬
Strauss
trickle
mere
Rubber
dow Glass.
H.
of
to allow those
needs to
available
Also
'No'.
says
He
import
an
refuses
license
Stromberg-Carlson
a
a
Trust
Mich.
why
a
gag
in your mouth.
Island"—study of im¬
reorganization profit po¬
N. Y.
no
been
of articles
they have
running in the Chronicle-
write
Mark
to
Merit, in care of
Schenley
Distillers
350
Avenue, New York
Fifth
Africa, etc.
argued that the Union
of South Africa desires to protect
that
one
is "No."
In many in¬
stances, such as in the field of
plastics and cosmetics, there is no
competition.
The
Conclusion
|
The conclusion seems inescap¬
able—the whole scheme is to pro¬
tect
England's general dollar out¬
go. ^Britain takes South African
gold and gives in, its .place an
and
into
then
dollars
translates
and
interesting
uses
the
the
latter in any .way that is
"neces¬
sary",
including
discrimination
against American traders.
with
They
those
are
of the
presented
those of the author only.]
circular
a
memorandum
—
Sills,
South La
111.
Wm.
—
LAMBORN & CO.
99 WALL STREET
on
NEW YORK 5, N. Y.
J.
Building, Cleveland 14, Ohio.
Exports—Imports—Futures
outlook
Minton & Co., Inc., 209
Salle Street, Chicago 4,
sphere of the sterling block, to¬
gether with so-called imperial
preferences, England controls our
trade with many countries and
thus succeeds in limiting it and
throttling it. We deemed it un¬
sporting to murmur during the
European war because the pool
then appeared to be a legitimate
shield against exploitation and a
device to conserve England's war
energies.
But, thank the Lord,
V-E Day has taken its plaee in
history and V-J Day will follow
it soon, we hope. At this point,
I feel the exporters in the United
States are
entitled to yell like
stuck pigs. I earnestly recommend
that your Association and others
SUGAR
Commerce
York
Corrugating Corp.—Memo
on current situation—First Colony
Corporation, 70 Pine Street, New
York 5, N. Y.
DIgby 4-2727
Personnel Items
(Special to The Financial
CINCINNATI,
Lutmer
with
C.
Trust
was
has
H.
become
Reiter
Building.
&
In
Established
Chronicle)
OHIO—Leo
associated
the
past
he
with W. L. Budde & Co.
H. Hentz & Co.
•
*
New
Cargill
is
with
—
William
New
P.
Merrill
Lynch,
Pierce, Fenner & Beane, Fletcher
j-
Members
New
(Special to The Financial Chronicle)
INDIANAPOLIS
1850
F.
Co., Union
York
York
York
Stock
Exchange
Curb
Exchange
Cotton
Exchange
Inc./.
Trade
New Orleans Cotton Exchange '
Commodity
Chicago
Exchange,
Board
of
And other Exchanges
Trust Building.
(Special to The Financial
:
Chronicle)
PORTLAND, MAINE—Raymond
and
complete investigations into the
operations of the Sterling Bloc
with J. Arthur Warner & Co., 477
in
Pool
NEW YORK 4,
Bldg.
N. Y.
W. Penfold has become connected
Meanwhile, our exports shrink.
I say this despite the conclusion
N, Y. Cotton Exchange
~
the
State
letter
received
Department.
It
from
the
boils- itself
similar
conduct
and
to United
its
immediate
effect
as
States trade.
a
barrier
Congress
Street. He was pre¬
viously with Charles A. Day &
Co., Inc.
-
CHICAGO
DETROIT
GENEVA.
as
V
Wellman Engineering—descrip¬
tive
Serrick Corp.—Current analysis
on
coincide
Chronicle.
Fashion Park, Inc.
1
down to this—within the imperial
South African industry by keeping
out American goods? The answer
to
available is
Mericka & Co., Union
\
plicable to Australia, New Zea¬
land, Rhodesia, Palestine, Egypt,
East
Also
time
Whyta
expressed in this
do not necessarily at any
Corporation.
N. Y.
*
'
views
Engineering Co.—De¬
scriptive circular — Simons, Linburn & Co., 25 Broad Street, New
York 4, N. Y.
Schenley Distillers Corporation
should be put
What I have said with reference
to India and South Africa is ap¬
Can it be
Co., 135
South La Salle Street, Chicago 3,
III.
v
'
Wellman
:
British
memorandum—Kitchen &
-
—Brochure
Company—
Carlson
Thursday. ^
—Walter
[The
•
..
article
tentialities—McLaughlin, Baird &
Reuss, 1 Wall Street, New York 5,
and
But that is
v
v
Stromberg
proved
More next
Noble & Co., Michigan
Building, Grand Rapids 2,
White,
on
leaflet
memo
and
of general market comment.
"Rock
break has eliminated many of
the
weak
accounts.
There
r
Simplex Paper Corp.—report—
to
If I continue
the
reconversion outlook-
on
Bros., 32 Broadway, New
4, N. Y. ,>•
York
about
are
only group which show no
'down signs. You have Big may be more setbacks before
they start to go up again,, but
Steel; continue holding it. I feel
reactions won't go far
Suggest you add Jones & and next
important move will
Laughlin between 24 V2 and be
up.
■'
25M?; stop at 23. Also hold A.
.7;/^ *
*
*
7
Southeastern i
Mohawk
Inc.;
steels
Hardware;
Corp.; Detroit Harvester; Bow¬
purposes,
goods in South
unwillingness of
take it and like it.
reason
gold
that
Salle
111.
randum
gripe, he will turn the screws
me
in> several other ways."
Thus the fear of reprisals causes
the
South
African
importer to
I.O.U.
there
South La
are
on
Union of
Roughly,
can
to
ships but not the space
on those
ships. Now what is hap¬
pening to
our
trade
with the
South Africa?
to
and
me
abandoned
'War
sees
Africa,
practical
that is the end of it.
greater in
those years.
no longer
there is now
enough cargo
space
and after
August first, all shipping appli¬
cations will be unnecessary. Con¬
trol
by the War Shipping Ad¬
presents
give
can
Africa
she
civilian
South
Lack
troller
that
easily pay in
gold for anything she needs but
she is within the sphere of the
Sterling Bloc Pool. Trade, there,
is regulated by the South African
Import Controllers who are, in
turn supervised
and curbed by
the British. Some time ago it was
difficult
to
trade
with ■ South
as
supplied causes inflation.
I
have been speaking to some large
South African importers.
They
complain bitterly, as you com¬
plain. One said to me the other
day, "What can T do? The Con¬
even
during
percentage
South
indicate
the
be
external
sources
to
England
the largest
thoritative
points
TACA Airways; American Win¬
or
It has
the means of
no
averages went up
Corporation
Company.
position to supply her
a
blocked for alL
debt,
producer of
gold. In 1939, the Union of South
Africa
produced 33.2%
of the
world's
gold.
No
figures
are
available for following years. Au¬
and
Garrett
on
ser,
instance
always been a fertile market for
American goods.
We buy little—
yet we sell much—and the Union
has always had
ment.
It has
for
National Terminals Corporation
—circular—Adams
&
Co.,
231
and the Dominions, such as South
Africa, all U. S. exports, in this
situation of
trading
the Union of South Africa.
dealers
and Magna vox
be
goods
for export to her Commonwealths
Africa
let
information
*
- .
fits her needs. Churchill's
manufacture
goods.
To cite another example,
statistical
they stepped in again but de¬
spite the fact that the Dow
brochures
are
and
for
Africa
South
available
readily see, under such operation,
until England is able to process
plement the loan unless and until
appropriate
revisions
to
your
advantage
are
immediately ef¬
fected in the Sterling Bloc Pool.
I
might
You
buy.
already manufactured. As.we
you must make known to the Ad¬
ministration that it dare not im¬
;<•"
and
Co., 208 South
Chicago 4, 111.
per¬
or
land is in
thunderous voice,
a
to
England
and is not permitted to avail her¬
self of
the American
handbags
exporters of the United
I11
Also
;
—
Undoubtedly, England will ap¬
ply for a direct loan to our
Export-Import Bank, and the sum
may run up to one billion dollars.
ACTION!
her
what
us
■..'
*
.
,
acting differently.
For
closer we come to V-J Day
example the rails appear to
Public National Bank & Trust
the closer the airplanes come
statement, quoted previously, "but
have made a top.
Yet stocks
Britain will not give up its rights Company—Second quarter analy¬
to a top. Same belief was cur¬
like Atlantic Coast Line and
sis—for dealers only—C. E. Un.to safeguard our balance of pay¬
rent before V-E Day,'
Yet,
terberg & Co., 61 Broadway, New Chicago
ments
& North Western
by whatever means are
York 6, N. Y.
here we are seeing the 'group
necessary" becomes much clearer.
(ctfs.) appear ready to start up
It is likely that Britain will buy
than
stocks
again. I therefore suggest acting better
Purolator Products, Inc.—Study
raw materials, such as metals and
of
outlook
and
buying the first between 65 V2 which, according to common
possibilities
leather, and make handbags to be
Ward & Co., 120 Broadway, New and
66V2, stop at 64; buy Chi¬ belief, are in for great times,
shipped to South Africa. She will
York 5, N. Y.
come reconversion.
Also available are
thus monopolize the South African
Figure it
cago & N. W. ctfs. at market
out for yourself.
market. South Africa, meanwhile, late memoranda on:
Meanwhile
with a stop at 37.
Great
American
Industries;
is compelled to wait until Eng¬
you
can be
sure
that the
Electrolux; Brockway Motors;
fit
-V
2States, this will be their
England doles out
Union of South Africa
it too.
To the
cannot
amount
shipped to England and
the Union of South Africa is given
sterling credit. Thus Britain man¬
ipulates the buying power of the
with
time.
eats her cake and wants to
the
her for purchases in a foreign
South Africa may only
for
;She would be likened to one who
.
she
yet
for
curious and ask what happens to
the gold. Most of it is earmarked
restraint
same
so
mits
England should not be
permitted to take advantage of
Bretton
Woods
facilities
and
; maintain
the Sterling Area Bloc
one
so,
do
buy from
controls."
at
do
to
to
Sterling Bloc Pool.Its purpose,
1 primarily, is to break up artificial
Pool
near-term liquidation of utili¬
and realization companies—
La Salle Street,
■
The movies
coun¬
market.
'
andv trade
to
afford
In fact, Bretton Woods in gen¬
eral is quite inconsistent with the
currencies
We have
need in this
of dollars that
con¬
hand bag
the
instance.
an
we
which
Sterling Pool
•
as
for such hand bags, and she
have the dollar credit with
pay
gealed within the Sterling Area
pool.
What are you exporters going
to do, meanwhile? Will you sit
there quietly chewing your nails?
As a trade diet, you will find
them most inadequate!
*•
of opinion pointing
consensus
,
group look
Paramount, the
here on; more so than ever.
positive member of the in¬
dustry, acts higher. On the
other end of the scale, 20th
Present signs are reminis¬
Fox looks lower. Any move in
cent of the spring of 1929.
movie stocks should find Par¬
There was a break then, small
amount the beneficiary,
Buy
in retrospect, but it
fright¬
the stock 29 V2 to 30^; stop at
ened enough people. Later
Midland Utilities and Midland
Realization Company—A study of
Values and Distribution, prompted
by
Says—
,
,
i
highly selective market from
.
to
*
.
another 80
between Spring and
Labor Day few people made
try.
But the women in South
National
Radiator
Co.—Anal¬
money.
From personal ex¬
Africa are in need of such articles.
ysis, for dealers only—C. E. UnTherefore, although South Africa terberg & Co., 61
periences I recall a flock of
Broadway, New
has plenty of gold with which to
distress
York 6, N. Y.
correspondence. If
Let's take
v.SV
■
•
(Continued from page 518)
(Continued from page 520)
Inc., 135 South La bane Street,
Chicago 3, 111.'
-:X:./:;'^\/,
Fred W. Fairman &
situation
exchange
and
Why
Why?
Byers, bought at 19, stop
16.^
■
ties
mdre than
agreements
would be permissible Outside and
/ beyond Bretton Woods machinery.
In other words, she can keep her
Sterling Bloc Pool arrangements
up
to five years.
As time is
figured
these
days
of
swiftly
moving events, that is a long pe¬
riod in which to keep us out of
*
under
Controllers,
rigid control.
goods."
three to five years in which new
bi-lateral
supplies
Walter Whyte
be
forced
to
say
to American
traders, at the behest of England,
"You can't export to us, as much
as we need your available civilian
ister's.
w
the
Recommendations
M.
Tomorrow's Haricots
the first cate¬
to
539i
Broker-Dealer
should the Union of South Africa
Min-
Prime
the
with
accord
Africa
ercise
Jlis thoughts seem to be entirely
in
As
the domination of the British, ex¬
with Japan.
war
where
or
critical.
are
gory of goods which are plentiful
in
this
country, the Union of
least three
at
for
after the
years
a
countries under license here. They
the op¬
over
licenses
items.
category of goods involving crit¬
ical or priority materials where
foreign trade. It is safe to assume, then, that should the Prime
Minister be re-elected, vigilance
*
*f v>( *v -'■*■ -
<*»h
t
PITTSBURGH
SWITZERLAND
a
return
.
for
-
"blocked"
reemeni
j|n payment for
countries
iance with England.
holds no
long as the
present rate of exchange
problem, of course, as
carry/ there is always the pos¬
sibility of limiting the risk in¬
volved by denouncing the agree¬
ment.
This can, of course, take
place at any time in view of the
three-months period of denuncia¬
to
/stability of the exchange rate be¬
tween the pound and the dollar
stands.
The pound/dollar rate of
^exchange has been pegged during
the war to $4.03 and may be ex¬
tion.
long as the
so
Problem for our ex-
Ensuing Consequences to Our
'
/change policy arises only if this
shall
stand
we
pound, or
by our dol-
firm
of
pegged our
exchange to the pound, which we
left in August,
1939?
In that
event, the consequence would be
that we,
again, would begin to
build up our exchange reserves
have
again
we
•
.
:
to decline in the fu¬
ture, in its relation to the dollar
while the restrictions were to re¬
main as regards the uses of the
pound, we may take it for granted
that we, in that case, would go
go
along with the dollar.
In
other words, this means that the
payments agreement cannot be
construed as a definite pegging
play judge by English
if
press
In the
March 9 issue of the "Times" it
comments on the subject.
■
is stated that: V.
implication of this agree¬
"The
The
obvious.
is
ment
'sterling area'
—and it may not be forgotten that
the 'sterling area
was
created
simply to facilitate trade over as
the whole
f
pre-war
which
ready
are
to
'
| trade?'
will
a
flow
than in the
United
States.
Up until now,
wholesale
price; increases have
amounted to 70% in England and
injection of immediate probj lems concerning gold supplies and
scarce exchange."
the as¬
sumption of unchanged exchange
rates, that it will be most profit¬
able for us to export to England,
but to
import from the United
England means, of course,
thing as a Swedish
credit-to England, but a credit in
with
same
This
ever.
«•
•
ac¬
to index figures which
not exactly comparable, how¬
are
self
•f the
in the United States,
cording
That Sweden has declared her¬
willing to accept "blocked"
pounds for her - export balance
I
England
in
36%
to
evenly without
the
:
the price level
lie
considerably
war,
obviously
higher
same
can
the
After
similar undertaking
purpose.
The ob¬
ject is not to form an exclusive
economic interest-group,
but/ to
expand that area within which
in
engage
with the
must
dollar
the
matter of course
from the Swedish point of view as
long as the dollar, contrary to the
pound, is a free world exchange
which has its definite purchasing
power in all markets.
steadily expanding group
a
nations
continued at¬
A
to
tachment
"simply the member states'
willingness to hold their reserve
balances in sterling.
Sweden now
of
pound/
appear more as a
an area as possible in times
of : acute
exchange difficulties—
large1
joins
the
to
was
;
were
Such
States.
of
implies,
a
situation
lead to
course,
on
would,
rapid
very
a
j pounds, not in crowns.
Hence, depletion of our dollar reserves.
| the creditor carries the exchange It is obviously of paramount im¬
portance that we do not, to too
I risk. -^England has recently con}; eluded a similar agreement with great an extent, reduce our pres¬
Belgium; the Belgian undertaking was limited, however. In the
i Swedish-English
agreement
no
J limitation has been reported, a
f
ent
of free
reserves
foreign
f fact which has been stressed
it
press—which
\ English
as a
the
in<
step
is,
of
from the English point of
f view.
The re-establishment of
England's international payments
course,
position;
|
war,
is
dismantled during the
long-range under-
a very
chasing mediums.
Our Riksbank
holdings of gold and foreign ex¬
riod,
takerv into account, the
of the reserves has
are
value
actual
instead,
to
approxi¬
j
mately 1,900 million crowns;
crease
,
in
sufficient
supposes
time for
which
exports,
an
essential
breathing-
rationaliza¬
tion and expansion of the
industries.
•'
"
•••
export
:
Tiyen though
beeh. stated,
pre¬
potential from Eng¬
land and the other parts of the
sterling area, will in all certainty
be relatively limited during the
no
there
We had
limitation has
are,
however,
fore
-be
This
approximately with the
probable export balance.
In the
exports
discussions
with
England,
I
sterling
reasons,
the
land
per year,
hence, a yearly Swedish
export,; balance
of
more
the
150,000,000
tion/with the negotiations of the
and exports from Eng¬
value at 300,000,000 crowns
in
combined export balance of close
to
payments agreement, according to
press reports, exports from Swe¬
den ^valued at 500,000,000 crowns
year
to
important
sterling
area
against imports amounting to 73,000,000 crowns. Hence. we had a
livery
per
the
to
countries
which were conducted in connec¬
,
export bal¬
sterling area even be¬
For 1937-39, the
value of our exports to
war;
433,000,000
crowns, while the value of our
imports from England stopped at
288,000,000 crowns.
Our average
during the next fiscal year.
trade
years.
very large
a
England amounted
foreign countries (1945:139), it is
proposed that the Riksbank pur¬
chase export exchange for a sum
amounting to 250,000,000 crowns
tallies
the
'
average
considered for the first
12-month
period.
In the bill,
con&fr&ed
with state credits to
■
post-war
ance to the
-/certain; facts to go by in estimate
Ing'the size of the amount which
may
immediate
most
crowns
to
the
Great Britain's de¬
potential,
for
obvious
area.
will
be reduced during
post-war years.
immediate
Furthermore,
the
demand
for
English goods will be very great
from
other
pounds.
alone in
holders
of
"blocked"
We will, namely, not be
situation of having to
a
200,000,000 i buy from England in order to get
change
The
in
rapidly
as
United
Africa.)
It
is, of course, not at all cer¬
tain that we will have to place
ourselves
other
a par
on
creditors.
•
course,
have
which
which
credits
accumulated
been
and such pound
the war
during
with England's
There
is,
of
fundamental difference
those
pound
credits
a
between
because
arise
of
voluntary commercial obligations
post-war period.
A
of priority does
unreasonable when it is
during
th'e
certain
measure
not seem
a
question of obtaining coverage
these latter credits through
for
Judging by
English press comments pertain¬
ing to the agreement, this opinion
appears to have support, to a cer¬
tain extent, on the English side.
of
deliveries
goods.
March
the
In
of
issue
9
the
"Times," it is stated as follows:
"It is necessary to guarantee
that no country is placed in an
unfavorable position by entering
into
such
agreements
(as the
Swedish-English).
Sweden will
only be one of many countries
amount of
enormous
the
For
its.
hold an
pound cred¬
largest portion of
will
together,
which,
there
credits
these
no
are
ex¬
pressed obligations, whatsoever,
concerning their redemption or
It is important that
otherwise.
which
ensue
through formal payments agree¬
ments,
receive
an,
at / least,
equally favored status in practice.
They must not receive a less, but
instead, preferably a more-favor¬
credits,
pound
been
have
which
such credits
accumulated
than
treatment
able
willingly extend
must
We
England
to
in
her
our
recon¬
struction work iby export
follow that
not
of the
under
reserves
our
strive
also
must
much,
we,
increase
our
too
to
exports to countries with free ex¬
changes; that is, mainly to the
United
States and to countries
which base their exchange on the
be
continued
A
dollar.
pegging
td
hence, appear td
matter of course.
The loss
dollar may,
the
a
which
the
we
case
suffer, thereby, in
possible devaluation
may
of
a
at a time when we
hold large pound credits, may not
be a deciding motive for our ex¬
of the pound
change policies. In a situation of
that kind, we should not, because
should
If
seem
more
lead
to
in
England
the
freezing of
present restriction policies for an
undermined period, it would con¬
stitute another, and much more,
important reason why
a
more
definite attachment to the pound
Is not desirable from our point of
press
Swedish-
the
that
English agreement does not con¬
flict
with
the
Woods
Bretton
It is, however, obvious that
plan.
its
bilateral
a
"blocked" pound cred¬
speculations in the
periodical, "Talouselania"
Certain
its.
Finnish
16,* are illuminating in
of March
Finland
to
Finnish im¬
for
pay
Sweden,
ports of such goods from
which
indispensable to the
Finnish economy and, above all,
to meet reparation payments to
the Soviet Union with pound ex¬
change which derives from Fin¬
nish exports to England.
In this
way
Finland would
be spared
from "blocked" pound credits and
Sweden would be spared from ex¬
tending direct credits to Finland.
If
are
credit
Swedish
continued
rency
in some form
or another, are taken for granted,
it is obviously in itself at least
equally favorable for us to be
holders of pounds as of claims on
flict
Finland.
in
of
character
a
agreement aiming at what in the
Bretton
Woods
branded
as
plan has been
"discriminatory cur¬
arrangements," it does con¬
the system which the
plan ultimately aims at.
How to
deal with the whole problem of
the
"blocked"
sterling
credits
with
constituted
one
the
of
most
im¬
portant subjects of contention
the
at
conference.
Woods
Bretton
However, it was decided that the
question be left out altogether.
The only step that was taken to¬
wards
cession
that
found
it
allowed
trol
solution
its
was
retain
to
the
con¬
which
should
be
country,
a
necessary,
exchange
con¬
certain transition
period of three to five years after
the war.
We now refrain from
during
a
opinion
on
as
to
England,
during
this
transition; period, will be
passing
an
grants
short
successful
such
in
of
tionalization
sweeping- ra¬
international
its
that a free conversion
of pounds into dollars could be
sanctioned.
In this
connection
currency
there may
be
to direct at¬
reason
tention
/ to
clause"
which has
the
"multilateral
;
been
inserted
Swedish-English agree¬
says, namely, that "to
the extent that opportunity offers
itself," it shall, for one thing, be
possible for the respective gov¬
ernments to place Swedish crowns
at the disposal of persons in the
sterling area and pounds at the
disposal of persons in Sweden for
payments to person? in an outside
country, and, secondly, that
it
shall be possible for persons in
an outside
country to use their
pound credits lor payments to
Sweden; that is, their crown cred¬
its for payments in the sterling
the
in
It
ment.
area.
It
..
.
difficult
is
considerations
the
of
which
on
however,
is,
a
clear
concrete
this
agreement are based.
clause in the
There
form
to
reason
every
that, to the extent that it
be
applied* it will mean
to fear
will
to Finland,
•)«
However, such arrange¬
ments must arouse certain appre¬
hensions.
Even
of
basis
the
on
the
expected Swedish export bal¬
ance with England, our "blocked"
pound credits will probably be
very considerable, as we already
have pointed out, and any further
extension
as
a
could
be
considerable
looked
burden.
upon
Fur¬
thermore, the Finnish exports to
England would thereby be placed
in a much more favorable position
than the Swedish and, hence, the
arrangement could not, from our ;
point of view, be accepted with¬
out a closer cooperation in regard
to actual sales
whether
Great
policies.
Britain
the
and
of
rest
the sterling area constitute a very
important market for our exports
well as for our imports during
normal times.
Hence, in itself, it
must be greeted with the greatest
as
satisfaction
meeting
the
that
of
methods
payments
between
Sweden and the
sterling area now
adjusted for the most
immediate post-war years. > By
the
Swedish-English
payments
agreement, we have demonstrated
our
willingness to cooperate in
have been
the re-establishment of, the status
of the
pound and, thereby, to the
of the whole exchange
solution
problem.
This does* not mean,
however, that we may close our
eyes
which the
to the problems
agreement raises for our foreign
trade and for our international
relations
in
general.
within the limits of our
abilities, extend credits to Eng¬
land is, as already stated, alto¬
gether as it should be.-* It is also
to be
hoped that the payments
agreement is afforded this limited
interpretation and is not accepted
economic
That we,
as
the
tion
taking of
for
a
definite posi¬
policies
exchange
our
after the war.
Anglo-Turkish Trades
The
lilSl/; and
(Continued from page 519)
of or with the con¬
of the Central Bank acting as
Article
.
at the request
sent
agent of
Turkish
ling
at
of such
the Government of the
Republic, to rrpke ster¬
disposal of residents
the
Government
public
count"
to
i
in
of
7
by
the
Turkish
Re¬
payable
the
"Commodities Ac¬
the
accordance
with
the
payments to "Turkish
May, 1938,<2> as amended by the
Supplementary Guarantee Agree¬
ment of the 3rd February, 1940,
and v with
any
supplementary
for current
1.
■
Article 5
the Cen¬
sterling area
currencies, other than sterling, for
the purpose of providing for pay
ments in the countries where such
currencies are legal tender, the
To the extent to which
Bank
require
Central Bank shall
through
amounts
Guarantee Agreement of the 27th
Accounts."
tral
The
other countries available
purchase them
'the Bank
of
Agreement
amending
the
said
Agreements of the 27th May, 1938,
and the 3rd February, 1940, shall
continue to be paid to the "Com¬
Account" and governed
by the provisions of those Agree¬
ments..
■■
|
modities
England
?
Article 8
against payment in sterling.
(i) If, during the currency of the
present Agreement, either of the
Contracting Parties becomes
Article 6
favorable.
developments
should
English
in
eagerness
of
short-sighted niggardliness, in¬
veigle ourselves into letting the
crown
follow
the
pound, even
though such expedient, perhaps,
Trade
Multilateral
and
It has been stressed with a cer¬
circumstances.
all
herself
land.
Bilateral
avoid the dwindling
to
order
of
direct pegging
pound is de¬
a
to the
crown
sirable
possible.
as
finds
States
ex¬
position where such return
can
be expected to
take place,
there, much earlier than in Eng¬
understanding
during the war."
help
free
a
a
comments
Union of South
to
return
tain
In
Our import
this respect.
The periodical pre¬
sumes that it will be possible for
to
only amounted to 216,000,000 pounds at the end of 1938,
(This figure, which is taken from
the League of Nations' "Interna¬
tional
Currency
Experiences"
[Princeton 1944]
embraces the
following
countries:
Australia,
Denmark, Egypt,
Eire/ Latvia,
Finland,
Lithuania, India, New
Zealand, Norway, Palestine, Port¬
ugal, Sweden, Thailand and the
in London
future, as well, this lies, not least,
in our own interest.
But it does
wholesale
in
strive
tries' combined exchange reserves
If the increase
of last March.
as
our
It-is, namely, to be feared
we,
British In
on
comparison it may be
15 sterling coun¬
In
prices, effected in
the United States during this pe¬
to 2,036 mil¬
lion crowns in August, 1939, and
has
increased nominally during
the war to 2,568 million crowns,
amounted
changed
decreased,
!
3,000
more
credits.
Due to our traditional trade con¬
nections with England and be¬
cause
of
the
great importance
which
the
English market un¬
doubtedly will hold for us in the
j taking. " In the
long run it can
only be done through a great in-
to
reduc¬
an
tion in
that
mentioned that
pur¬
'
'{ decidedi forward
pounds
than one-half fell
dia.
estimated
were
approximately
of which
to
million
ex¬
England dur¬
,
for
basis
If the
to a free exchange.
that this has been pound
interpretation in England,
the
rone
attaching the
tous interest lies in
crown
appears
Our most momen¬
and the dollar.
;in pounds.'
"// It
definite decisions in re¬
any
gard to our future exchange-rate
policies; instead, the
payments
agreement may be assumed to
rest, for the present, on the as¬
sumption of an unchanged ex¬
change rate between the pound
consummated with England, mean
that
course
late
other
jwords,. does the agreement, now
In
present stage, we have
not been able to formu¬
the
At
the
follow
then,
we,
!lar-rate-of-exchange?
Policies
Exchange
Shall
of exchange changes.
rate
credits
amouht
to
At the end of 1944,
ing the war.
these
pound
credits threaten to become larger
than we consider ourselves able
"blocked"
the
Should
| As regards the rate of exjchange, 'the stabilization of the
iwar lasts.
it is be-
other
and
services
tensive
export bal- crowns, were assumed,
lieved.
our
pected to remain
;
ac
countries
during the war in liquidation for
large deliveries of goods from
these
(Continued from page 519)
the
for
sterling
the
of
have
credits
increase than
rather
too, in that case would
have to agree to retain; our ex¬
change restrictions.
In the inter¬
est of our foreign trade, we must
view.
credits,
our
pound
accumulated
been
counts
;
Thursday, August 2, 1945
THE COMMERCIAL & FINANCIAL CHRONICLE
540
two
Central
Any sterling held by the
Bank
may
shall
be
be
invested
agreed by
only
the Bank of
England, and any Turkish
leld. by
as
pounds
the Bank of England
be invested only as may be
by the Central Bank.
shall
agreed
-
a
party to a general international
monetary
agreement,
they
will
consult together in order to review
the
terms
ment with
of
amendments
quired.
;
the
present Agree¬
view to
a
that
.
-
'
making
may
be '
any
re¬
V*^i!I itH M*; II il§f§l§l§ ilife :Mi#I^P
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4408
162
(ii) During the currency of the
present Agreement; the Contract¬
ing Parties shall, cooperate to ap¬
to the other at least three months
of
before the 30th
541
pound sterling for certain opera¬
April, 1946, it will
the
Turkish
Republic
to
DIVIDEND NOTICES
the
remain in force for successive pe¬
tions
ply it with the necessary flexibil¬
ity
according
to
circumstances.
The
Bank
of England and
the
Central Bank, as agents of their
riods
the present Agreement is in force
but the Government of the Tur¬
p e ct i v e Governments, will
maintain
contact
on
technical
the end of any such period.
In Witness whereof the under¬
questions arising out of the Agree¬
ment and
on
exchange control
signed, being duly authorized tc
that effect, have signed the pres¬
ent Agreement and have affixed
Turkish
within the framework of the Ex¬
of
thereto their seals.
change
August 15, 1945.
DIVIDEND NOTICES
r e s
matters
affecting the sterling area
and Turkey..
twelve
of
months
notice of termination is given by
Contracting Party to the other
one
not later than three months before
|j ,
in London
'
Done
I; Article 9 :I,;
_.■:V?
For the purposes of
the present
Agreement—
(i) The expression "Turkish Ac¬
count"
means
in the
name
sterling account
any
of
resident of Tur¬
a
United
Kingdom which has, in accord¬
ance
with the provisions of this
Agreement, been designated as a
with
key
bank
a
in
the
unless
in
duplicate
this fourth day of May, 1945, in
the English language. A transla¬
tion
be made into the Tur¬
shall
kish language as soon as
possible
and agreed between the Contract¬
ing Parties. Thereafter both texts
shall be considered to be equally
Law.
M. C. Acikalin.
Cahid Zamangil.
(L.S.)
<
,
tions in force in the United King¬
(ii) The expression "the sterling
area"
shall
have
the
meaning
time
from
time assigned
to
to it
by the Exchange Control Regula¬
tions in force in the United King*
No
dom.
change
list
the
in
of
countries comprised in
the sterling
area
shall have effect, for the
purposes of
the present Agree¬
ment, until it has been communi¬
cated to the Central Bank by
Bank
the
of England.
the
In
in
change
of
event
the
list
a
substantial
of
At
the
of
signing of
Agree¬
ment of this day's date, the Gov¬
ernment of the United Kingdom
moment
Trade
and
Great
of
Payments
Britain
Northern
and
Ireland
and; the Government
Turkish
Republic desire
the
>
of
to
place on record that they have
agreed upon the following provi¬
sions, which shall continue in ef¬
fect so long hs the said Agreement
remains in force:—
I.
countries
The
the 3rd
Agreement of
February, 1940,(3) amending the
the changes which might have to
tion
the provisions of the
be made in
Transactions between the
Bank of England and the Central
Bank
are
to
be
considered as
(iii)
transactions
between the sterling
and Turkey.
area
(iv) Transactions entered into
by the Government of the Turkish
Republic or by the Government of
any territory within the sterling
to be considered as tran¬
are
sactions entered into by a resident
in Turkey, or
sterling
by
area, as
«';•::;'
•
resident in the
the case may be.
a
shall be admitted
importation into Turkey or
the United Kingdom respec¬
in
into
signed at Ankara on the 1st
March, 1930,<4> shall continue to
Turkey
tively, in conformity with the leg¬
islation
governing imports into
to
Trade
the
ano
Payments Agreement signed this
day
for references to the Trade
and Payments Agreement signed
in London on the 3rd February.
With reference to Article 2
II.
of
the
today's
of
Agreement
the
Central
The
Republic
Bank
the
of
(hereinafter
of Turkey
called the Central Bank)
will in-
drnrcthe Bank of England of any
aew "Turkish Accounts" which it
^av
nam#*
m
ooen
with
other
banks in the United Kingdom.
(c)
11
the
for
in
far
so
the
the
sterling
sold f.o.b. and carried
owned
dent
the
is
by
in
third
a
sterling
paid
by
behalf
on
area
vessel
a
resi¬
a
country
the
to
resident
Turkey of the freight
in
the currency of the country of
residence of the owners of the
vessel
of the
or
charterers of the
vessel,
as the case may be. j.
;'
Where goods exported from the
sterling
f.o.b.
and
owned
to
area
by
Turkey
carried
in
on
sold
are
third
imports
a
chaser,
the
Republic will raise
Government
the
of
area
.
of the charterers of the
as
the
may
in
Agreement),
shall
"Turkish
of
Turkey
England will do its
that such
secure
the
The
(i)
(a) and (b)
ac¬
.
:
^
from
im¬
or
Turkey,
with
by residents
ren¬
in
one
country to residents in the
or
encashment of coupon«
securities
2/18669
sold
payments
and
sent
with
or
Agreement signed today, or
register them within three
of the coming into force
of that Agreement, may, within
a
maximum period of 12 months
from today's date,
utilize such
shall
so
months
sums
and valonea, or
in
Turkey, except those referred
Article
7
area
of
to
residents
the Trade and
Payments Agreement of this day's
sell such sums to
other persons
with
utilized for
without being
the
of mohaif
a
view to their
the purchase
and export of mohair and valonea,
of
the
obliged to pay 40%
oroceeds to the
sterling
"Turkish Account" of the Central
Bank.
(ii)
Residents
in
United
the
with reference to Article 3
rVntro}
less notice of termination is
given
of the
Agreement, the rate of
2/18669, whether before
of the Contracting Parties
mium
applied by the Government the date referred to in paragraph
(c)
(ii)
above,
para¬
shall
be
made to "Turkish Accounts."
pre¬
Kingdom, who have
sums
Bank
under
Decree
or
No;
after
Jlprwi
Cleveland, Ohio
-
MS)
>
'
The
Board of Directors
of Eaton
Manufacturing
has declared
!)
to
shareholders of record
has declared the
September
the close
>S .u
H. C. STUESSY,
Secretary & Treasurer
July 24,
Cumulative Preferred Stock,
456% Series, and a dividend of fifteen
cents (15c) per share on Common Stock,
per share on
payable
at
of business August 6, 1945.
regular quarterly dividend of One Dol¬
lar and twelve and a half cents ($1.1214)
both
dividend of
a
Seventy-five Cents (75c) per share on
outstanding common stock of the
Company, payable August 25.* 1945,
the
BUTLER BROTHERS
The Board of Directors
1945
1, 1945, to
I
holders of record at the close of business
Edwin O. Wack
July 24,1945
INDUSTRIES, INC. :
Secretary
.
*
utilize such sums
export to the
Kingdom
of
goods
of
may
Agreement signed on
day of February,. 1940,
provided that 40% of the sterling
proceeds of such goods are paid
on'
A dividend of 15c per share;
Common
the
United
I
j:'V
'ihni-
WOODALL
Checks will be mailed.
August 2, 1945.
y
DIVIDEND NO. 82
Treasury-
?
Stock
has
been
declared,
payable September
15,
1945, to stockholders of
record September 1,1945*:
r
:
M. E. GRIFFIN* i
Secretary-Treasurer.
■
Payments
3rd
the
"Turkish
the
to
Account"
ANACONDA
New
Central Bank; the balance of
60%
the resi¬
dent in the United Kingdom on
behalf
whose
made. The
the purchase was
provisions of this para¬
of
the
reference to
Agreement
of
Article
today's
date,
the
Government
of
the*
United Kingdom will do its best
to
facilitate
Board
Directors
of
shares
of
record
at
C.
Farmers
Eureka,
Nevada,
and
of
the
value
1945
/
149
of
;
the
.
.
.
.,
Anaconda
the
close
of
1945.
business
-4*
at
■
EARLE MORAN, Secretary.
Merchants
&
National Bank of
located
at Eureka in
the State of
is closing its affairs. All note holders
creditors
of
the
association
are
other
therefore
hereby
notified to present the
and other claims for payment.
Dated:
June
16,
through
the
26,
LIQUIDATION NOTICE
banking
to
the
"Commodities Account" of "100%
channels
CO.
'.
Y„ July
3 o'clock P.M., on August 31,
graph shall be subject to review
adjustment between the Con¬
tracting Parties.
VIII. With
MINING
Broadway
4, N.
Copper Mining Company has declared. a| divi¬
dend of Fifty Cents (50#) per share upon its
Capital Stock of the par value-of $50. per1 share,
payable September 26, 1945, to holders of such
and
7
York
DIVIDEND NO.
The
shall be at the disposal of
COPPER
25
.
of the
1945.
C.
notes
;■.j- ■
.
\;,Y,
"V:
L. TOBIN, Cashier..
payment
of
the
Kittrell in New Post
commodities
referred to in the first paragraph
of Article 3 of the Supplementary
Guarantee Agreement of the 3rd
stand-" February, 1940.
ing to their credit in Turkey and
have
registered them with the
•
EATON MANUFACTURING COMPANY
August 11, 1945.
E. L. NOETZEI.
for the purchase and export
to the United Kingdom
All ouvments bv reeMontc
in
sterling
coming
the
ments
being
(d)
before
;
July 25, 1945.
the clos
The
Turkey, with mainte¬
nance
ITT.
New York,
,
Decree
under
Bank
premia relating to or claims
paid in resoect of insurance
of goods, &c.
graph
at
July 31, 1945
V
per
Stock; and
per
C. A. San ford, treasurer
142
Turkish origin, enumerated in the
Second Schedule to the Trade and
into force of the Trade and Pay¬
origin
Central
the Preferred
on
Checks will be mailed.
5
•
,
No.
in
in paragraphs
quarterly dividend of $ 1.50
interim dividend of
of business
amounts
date and those referred to in
one
i
naragraph (i)
(c) of Article 4 of the Agreement
to
NO/-',187
20, 1945, to stockholders jif,Rec¬
at the close of business on
stockholders of record
to
Central
;
Dividend
ord
forty cents
(40#) per share has been declared
on the
capital stock of The Border
Company, payable September 1,1945
account will be used for the trans¬
to
Treasurer
share,on the
no par value Common Stock haye
been declared, payable September
f
standing to the credit of this sub¬
fers referred
GREGG,
-
dividend of 25£
a
residents
shall
come into force on the 21st May,
1945, and remain in force until
30th April, 1946. Thereafter, un¬
by
An
vessel,
No.
Turkish
from
to in
Agreement
D
DIVIDEND
Account" at the
England.
A
Secretary
'«TT°r
with
7 of the
placed by
be
of
will'ibe.
I,
W.
August 22, 1945.
accordance
sub-account
Checks
Common Dividend No. }51
T3oKfoH%
the
the
the
a
Article 13
between
other, with the proceeds of
view to
present
1*
ft
the Central Bank to the credit of
Bank
1945.
■■
COMPANY
share
July 30,1945
the provisions of Article
a
29,
Preferred
W. M. O'CONNOR
.
and
in
on
close of business
ELEVATOR
Checks will be mailed.
be.
Bank from
payable
payable
L
thirty-seven and one-half cents (37^c)
per share was declared on the Common
Stock of the Company, payable Septem¬
ber 15,1945, to stockholders of record
at the close of business August 21,1945.
representing the
amount
received
for
goods of
Turkish origin imported into
the United Kingdom (other than
goods
the
proceeds
of which
?re
at the
meeting of the Board of Directors
July 30, 1945, a dividend of
a
held
Agreement of today's date,
of the sterling, bought by
Turkey
share .has
per
the Common ?tock
O T .1 'S
At
With reference to Article 4
Central
$.15
on
160
of the
20%
j
NUMBER
DIVIDEND
country of resi¬
VII.—(i) Residents in the United
Kingdom, who have sums stand¬
ing to their credit in Turkey and
who have registered them with
'
without
the allocation to Turkey
equitable share of the per¬
mitted foreign imports.
COMMON
ob¬
of the same article.
dered
first giving the Government of the
Turkish Republic an opportunity
an
THE ATLANTIC REFINING CO.
the
no
in
freight
the
business
September 12, 1945 to stockholders
resi¬
of
or
VI.
of
corporation,
CLIFTCN
reimbursement to
of the
case
this
mailed."
the resident concerned in the ster¬
ling
dividend
of record
(i) above,
payments for service'?
the
discussing the matter with
Walter A. Peterson, Treasurer
outside
country
Turkish
the
V.V:;
of
sterling area and the freight
is paid by the exporter in the
sterling area on behalf of the pur¬
to
of
Checks wiirbe
Common Stock
A
vessel
a
chartered to
or
a
close
outside
purchaser, the
Government of the United King¬
dom will raise no objection to the
concerned in
the
the
reimbursement
the.
Stockj qf
on Sep¬
1945 to stockholders of
1, 1945.
v,
on
per
on
payable
are
area and the freight
the Turkish exporter
of
declared
t
August
chartered to
or
at
been declared
Where goods exported from
to
15,
$1.00
of
Preferred
corporation,
i
,
mailed.
6ffo Preferred Stock
August 15, 1945,
been
September
Corporation, payable Sep¬
Atlas
has
tember
for the purchase and
ported
.
permitted
the
dividend
Cumulative
reco-d
divi¬
a
July 31,1945.
of
regulate the quantity of the im¬
that
tember 1, 1945, to holders of such
stock of record at the close of busi¬
United
with the proceeds of goods
-
ports into the United Kingdom of
any agricultural products of Tur¬
key, they will not make alloca¬
of
of
on
goods
counts will not be credited
Government of the
Kingdom undertake that,
in the event of their deciding to
countries
declared
ness
imported into the
Kingdom from Turkey.
quarterly
this
share for the quarter
ending August 31, 1945, has been
oaragraph and, if not so used, for
payments and transfers referred
best to
v
A
dend of 75# per
subject to the provisions of that
in
tb
United Kingdom,
between
is hereby given
Tur¬
Bank of
im¬
iff-'
'
>.■
1, .194p
Preferred Stock
business
of
Preferred Stock
6%
on
Notice
as
actions
The
The
the
in
August
Dividend No. 36
the
mercial and financial trans¬
United
of
Bank
may be paid sums not re¬
sulting from current com¬
treatment shall be ac¬
corded to articles grown, produced
or manufactured in Turkey.
of
opening
of residents
names
equitable
total
Central
close
key of accounts, into which
(i) In the event of quantitative
-
United
the
at
Kingdom will accord correspond¬
ing
facilities
for
payment
for
Bank's
the
of
ment
to grant xacnimportation
of
into the United
limitations being imposed on
tions
the
(ii)Nevertheless, the Bank
England will not be re¬
quired to obtain the agree¬
Article 12
(ii)
in
of
Kingdom,
into
banks
with
Kingdom.
ports
Central
Kingdom.
internal
goods
the
of
Rank
and of the Bank of England,
open
"Turkish Accounts''
industrial
and
economic
requirements
of
Turkey, and, having regard to the
general import situation in the
Turkish
sellers,
record
a
share
Common
share
the import of the goods concerned
has been authorized.
redesignated "Turkish Accounts."
Kingdom will do their best, hav¬
ing regard to the general export
situation in the United Kingdom,
the
and
between
upon
Upon the entry into force
Agreement, all existing
Turkish Special Accounts shall be
(a)
New York 20. n. Y.<
per
the
$4
dence of the owners of the vessel
of
30 Rockefeller Plaza'
25#
on
payment
currency
The Government of the United
for
in
date:—
ment
ities
that
secure
agreed
jection
importing country at the time
importation. '
United
to
force
divi¬
that
is hereby given
of
dend
declared
Republic will do its best,
in
fUMK
COMPANY
Common Stock
on
has been
Stock of
Atlas Corporation, payable Septem¬
ber 10,1945, to holders of such stock
Notice
the
of
the
references
of
satisfy the
Dividend
judge to
Government
THE
Atlas Corporation
right
premium
it may
as
Regulations
buyers
of
the
to
terms
dent
(i) Other residents of Tur¬
key may, with the agree¬
Article
of
rate
for
goods
exported
from
the
United Kingdom into Turkey can
be made in accordance with the
have effect, with the substitution
in Article 2 and Article 3 thereof
(b)
ufactured in the United Kingdom
The
Turkey,
Treaty of Commerce and Naviga¬
Article 10. ■':!
Goods grown, produced or man¬
for"
IV.
Turkey
the
the
reserves
the
such extent
to
V.
comprised in the sterling area, the
Contracting Parties will examine
present Agreement.
Republic
increase
while
lowered
be in accordance with its interests.
PROTOCOL
dom.
or
to
be
not
The Government of the United
Richard
(L.S.)
Turkish Account for the purposes
of the Exchange Control Regula¬
area
kish
authentic for all purposes.
(L.S.)
will
The Government
of the Turkish Republic will be
responsible for implementing its
guarantee for the payment to the
"Commodities Account" of 20% of
(Continued on page 543)
'
Colonel
Clark
of Engineers,
named
Kittrell,
•
Corps
U. S. Army, has been
Executive
Officer of
the
Army-Navy Liquidation Commis¬
sioner's Office, Mr. Thomas, Bay¬
ard
McCabe,
Liquidation
missioner, announced.
Com¬
tlli|Ifl$i$iil||$ll§§$$t$§$i^^
THE COMMERCIAL & FINANCIAL CHRONICLE
$42
Business—Corporation
Calendar Of Hen Security Flotations
dustries,
FILINGS
NEW
List
of
registration
filed less than twenty
whose
issues
statements
were
shares
ago,
on
normal
less
ing
(shares
and
B stock,
of Class
shares
250,000
10 cents.
will be
par
shares
Offering—There is to be presently of¬
to the public 250,000 shares of Class
and 50,000 shares Class B to be offered
Sn units of 10 shares of Class A and 2
A
at a price of $60.20
of Class B
heads
MONDAY, AUG. 6
T.
W.
&
underwriting group.
the
GRANT
CO.
July
on
■
filed
18
a
'
■
•
■■■■■'," v"'
r-z'.'O
■
Details—See issue of July 26.
Offering—Holders
of
company's
out¬
standing ; 5%
cumulative preferred stock
will be given an opportunity by the under¬
writers to acquire the new preferred stock
at
public offering price in exchange for
present shares by offering their present
\
'
shares
which
demption
the
at
re¬
$22 per share plus ac¬
Offering price will be
of
dividends.
crued
filed
received
be
Will
price
by amendment.
Proceeds—The
July
statement for $1,500,000 5%
15-year sinking fund deben¬
tures due Aug. 1, 1960; five-year common
stock
purchase
warrants
to : purchase
57,500 shares and a like amount of common
shares issuable upon the exercise of the
warrants.
The company proposes to sell
the debentures plus 20,000 Warrants to an
underwriting group headed by Van Alstyne,
Noel
&
have
Each
Co,
attached
debenture
$1,000
non-detachable
a
warrant
■■■■■■«■'-'■■■
■
of
July 26.
Noel
Alstyne,
heads the underwriting group.
&
SUNDAY, AUG. 12
Co.
"
statement' for
registration
000
public
the
capital stock,
par
$1
220,000
(Canadian).
Address—26 Adelaide Street W.,
Toronto,
Business—Mining company.
Offering—The offering price to the pub¬
60Va
United
Canadian
cents
States
N.
funds.
55
or
cents
of
Burnside
&
the
to
public
stock
common
purchase
poses
shares
registration
of
statement
Address —831
Second
223,-
President
of stock
and
•
will
be
preparation
general
South,
Avenue,
warrants
of
to
working
at
Utilities
Corp.
in
statement
100,000
a
North
reg¬
shares
The
by amendment.
Street, Chi¬
"<'■
a
stock
issued
Shares
the
under
ex¬
$108.50
share,
per
respectively.
Registration Statement No. 2-5843. Form
S-l.
INC., has
filed
issued
and
outstanding and do
financing.
sent new
Address
..Valley,
;
N.
—
40
Lawrence
not
shares
Spring
;
Proceeds—All of
■
the
shares of stock
tric
which
Co.
the
will
receive
the
are
Inc.
of¬
and
proceeds
be
used
Securities
statement
par
~
Corp.
for
247,361
shares
Business—One
turers
in
the
decorations
(no
and
retirement
will
distribution of
of
be
bank
added
loans
to
the
of
world
and
the
of
Beane
heads
names of
the
and
sale
toys and household and marine type heat¬
etc.
underwriting
others to be filed by
Registration Statement No. 2-5844. Form
(7-28-45).
Offering—Company: is offering its
to stockholders of
preferred
rate
Underwriters—None.1
$m>fc stock
SATURDAY, AUG. IS
J. J. NEWBERRY CO. has filed a regis¬
tration statement for 100,600 shares of
1
yh-
stock
be
N.
Y
(per $100).
filed
Address—245
com-
Triumph
will
by
Fifth
The dividend
We
St.
entire
New
York,
filed
27
and
preferred
a
be
GAS
&
registration
mortgage
shares >of
Interest rate
stock.
rate
determined
preferred
on
:;V
of
July
-i.
Aprl?
26.
named.
The.
at
July
on
K.
and
stock,
the
of
account
and
Offering—The
filed
price
the
to
•
public
:
..
group.
•
debenture certificates.
ENAMEL
registration
list
a
for
shares of common stock, _.par $1.;
Details—See issue of July 12. -
Issues
of
June
on
a
statement
offered
to
and
of
to
of
and
the
several
4 filed
of
shares
are
subscribe
of
*
,
the
stock
common
.
Tb»
$25).
(par
owned
by the North American
Co. which is offering them.
V
•
Details—See issue of May 10.
" :
%
Awarded May 22 to Blyth & Co., Inc. at
$36,76 7/10 per share,
*
' ;
'
Rights expired Aug. 1.
Unsubscribed shares will- be sold to under¬
writers for offering to the public.
•
i
at
.
registration statement for 700,000
a
shares
common
1
:
>
PACIFIC GAS & ELECTRIC CO. on May
•
-
common
whose
new
r
v
58,264
deter¬
the
businesses
by the trust.
Underwriting—None named..
30
twenty
to
•
employees, customers and suppliers
the trust
19 the right to
stockholders of record July
■
-
securities are -to be sold
at their par or face value - to the -owners
and operators of O K Tire Servicing Stores,
j
CORP.
»
issue of June 21.
Offering—The
heads
,
%
SYS-
WELDING
registration state¬
par
value $1,000
a
shares,
Details—See
"
.
Brothers
RUBBER
12 filed
500
ferred ,7.%
'
'i
wi|l
July. 19. :%
Underwriters—Lehman
underwriting
for
stockholders.
of
amendment.,
by
sold
June
for
designated
as
"participating
members
shares,"-and 800 units of $500 each of pre¬
issued
are
being
are
certain
.
issue
Details—See
Shares
$1.
par
outstanding
CO-OP
on
O.
ment
a
registration statement for 32,500 shares of
common
jgompetitive bidding
com¬
filed
9
be
will
bonds
and
and names ,of
underwriters will be filed by amendment.
%;
Issue Disapproved—The New York P. 8.
Commission on July 30 disapproved of the
proposed refinancing.
■
*
.
"
Underwriters—Stock
sold
TEM
INC.,
.
5.
Offering—Price to public Will be filed by
,
to market its own securities
EVERSHARP,
i*
competitive
by
.
issue
~
first
150,000
dividend
and
Details—See
.
Underwriters—None
the
A-
below
present
rate
.
days
offering
or
more
been
not
unknown
are
but
ago,
have
dates
mined or
to
us.
A:.
.-
share
one
for
four
each
shares
held
share.
at $20.50 per
The SEC
Underwriters—Maynard
;
H. Murch & Co.
underwriting group,
i
the
refused to approvn..
May 23
on
.
*
the bid, stating that competition had "been
stifled."
ACF-BRILL MOTORS CO. on June 30 filed
registration
rants.
and
being
are
issued
are
sold
and
out¬
by American
Car
& Foundry Investment Corp.
issue of July 12.
■
f .
Offering—The warrants entitle the hold¬
Details—See
subscribe to the common stock of the
er to
company. The selling stockholder, American
Car
&
Foundry Investment Corporation,
to offer the warrants for
proposes
sale to
the public commencing
1,
with
1945,
from
day
approximately Aug.
price to be determined
the
by
day
to
'
warrants.
market sales
■'
'
,
Underwriters—None
,
of
the
'OILi.'VENTURES, LTD., on.'Maj
GASPE
statement for 190,464Vfe war¬
warrants
The
standing
AMERICAN
2*1
filed
000,000
tures
8
filed
■%%%■'
for warrants.
1
issue
Details—See
of
wells.
oil
•,
CO.
1960
and
stock.
200,000
the
Of
shares
stock
$1),
'
.
r
,
development
a
price of 45 cents per share, v
&
o\
registerea
A.
the
for
price
j
Co.
4
com¬
held
shares
were
stock
certificates
of
the
>.
reor-
the
pew
shares
comrpon
to
up
of the oi'igin'al amount of these bonds,.
.5%, payment In reduction, pf- principal
95%
& CO.. on April 23 filed $
statement for 7,000 shares of
-preferred
stock
(pat
having been made
1,
v
Details—See issue of April 26.
1945.
offering
per share.
"'Y:.
price
of
on
stock
the
April
is
v*;
-
Underwriters—In
preferred will be of*
these bonds
on
Rights expire July.
The
1
t
$100),
new
10
P
'
*
to purchase
each
company are
attached may use
their bonds in payment of the; subscription
cumulative
Offering—The
for
ganized
HARRIS
registration
shares
which
a
o,/2%-
shares.
common
Offering—Warrants
18, 1945, to holders of record
?
July 16.
In exercising warrants, holders
of general, mortgage 6%
income bonds tap
in the offer¬
sold
A
mailed July
Offering—Price to the public is 60 cent!
share.
The underwriter will receive
purchase wararnts for the purchase oi
2,000 shafes of common for each 15.00C
of common stock
and
mon
>
.
COAL
Details—See issue of June 28.
FeK
on
registration statement for $3,1
15-year sinking fund deben!
a
5%
due
.
READING
&
June 23 filed a registration,
412,596 cOmmonr shares (pjar
warrants
to
purchase a lik«
on
number of
per
shares
mentioned.
ENGINEERING
and
Business—Exploration
of
17.
CO.
statement for
';<■
May
PHILADELPHIA
IRON
a
shares
ing at
•,
.
.
"
registration statement for 1,500,of common stock ($1 par) and
200,000 common share purchase warrants
and 200,000
shares of common reserved
000
132,000 shares are issued and outstanding
and being sold by stockholders.
$11
±
amendment
an
filed
issue of March
8.
[:
Offering—The debentures, will be offered
Jiily ' 13 Company announced - that offering
.
.
at 100 and the common stock at $7.50 per
share
Underwriters—Vaft
Alstyne, Noel & Co
underwriting group, with tht
heads
the
names
of others to be supplied by amend*
ment.
BROOKLYN BOROUGH GAS CO.
10
filed
registration
mortgage
a
1970.
The
interest
bonds
rate
July
for
statement
first
640,000
on
$3,-
due
will
Aug.
be
issue
Details—See
Offering—The
filed
by
of
Underwriters—The
for
sale
at
of
names
July 19.
the public
price
to
bonds
competitive
will
will be offered
bidding
underwriters
ment.
filed
and
by
Offering—ThO company will offer the >
63,784 shares of preferred stock in ex¬
change for the 29,182 shares of 7% and;
34,602 shares of 6% preferred stock now
registration statement ~fqg-~x&.
.shaxgo" cumulative "^refeTreostock.
The
a
stock
and
will
sold
be
at
competitive
bidding
issue
to
public
filed
be
to
by
amendment.
filed
by
amend¬
ment.
EASTERN GAS & FUEL ASSOCIATES
June
29
filed
trust
bonds
filed
be
a
first
$40,000,000
due
mortgage
1965.
on
statement for
and collateral
registration
Interest
issue
of
5,
;
■
j
Offering—Price to public will be filed bjr
amendment.
/v.
!.
Underwriters—Bonds will be sold at com¬
will
Stuart
received
be
St.,
Boston
EWT
noon
on
16,
Aug.
Room
at
1208,
250
before 12
the successful
rate.
J
Mass.,
16,
bidder to specify the coupon
Dec.
28
filed
registration statement
for 11,972 shares of preferred stock, cumu¬
lative ($ioo par).
The dividend rate will
be filed by amendment.
a
Details—See issue of Jah. 4,
Offering—Company
proposals
for
to
be
to
inVRe
rendered
to
obtaining acceptances of the exchange
offer. of
ferred
new
and
preferred
for
the
stock
purchase
fof
eld
from
June
to
on
29
cumulative
issue
preferred
stockholders
subscribe
to
new
basis
on
of
of
of
July
stock.
with
will
of
and sold to
the public.
Underwriters—Underwriters
Stanley
gan
&
Co.,
Clark,
Dominick & Dominick,
&
pre-
it
of
COUNTY
Mor¬
are:
Dodge
&
Co..
First Boston Corp.,
LIGHTING
in
,
under
the
for
N.
-
Y.
up
William St., New York 15,
to 11 a.m. EWT Aug. 6, the
bidder to
specify the interest
'■
;
Issue
& POWER CO;
registration statement
MARICOPA RESERVOIR
June
29
filed
a
Steel
June
a
shares
7.
:V'
the registrant
acquisition of 54%
Products
100,000
Bennett & Co.,
ROBERTS
Corp.
shares
in
exchange
Bennett & Co.,
of
to
as
11
filed
000
a
Inc., Dallas, Texas.
TOWING
COMPANY
•
issue
of July
July
registration statement for $500,-. '
serial
4%%
equipment
trust
certifi¬
'
-
Offering—Company is offering, to. hold¬
: of'.. $3,343,500
3 % ' incoittfe bondsdue
r
Details—See
issue of July 19.
»'
Offering—The price to the public of the *'
different
ment."
given
series
The
as
will
average
be
Pittsburgh,
Louis, Mo.
and
filed
price to
by
the
:
100.47.
K.
•
•
amend¬
public is
f •
Nordmah
•
.
<•
-
Cunningham,
John
6T. JOSEPH LIGHT
feb- 28 fiied
,
5.
,
i i
on
•
Inc.i
Co.,- St.
.
$3,343,500 4%
stock, no par.
Details—See
>
ad-'
an
common
cates.
income debentures due
May 1, 1970,"and $4,458 shares of common
ers
of
the sole underwriter
is
Underwriters—S.
on
990,793
issued to Bennett & Co.,
Inc., in exchange
for various obligations of the
registrant.
Underwriters
—
Principal underwriter
22
rate.
May 31 filed
for
regis¬
tered.
The balance of 530,823 shares
of
stock being registered have heretofore been,
,
ing tenders for the purchase of the bonds.
Bids will be received at City Bank Farmers
successful
/
acceptances Of
*"
all of Federal's stock.
Inc.,
Commission's
.
Co.,
.
^
(par $1).
connection with the
Federal
competitive bidding rule.
■
Bids for Bonds Asked—Company is invitt
Trust
pre-
outstanding stock of Seatex Oil Co.,:"
Inc.
In
addition, 150,000 of the shares
registered will be issued to stockholders of
,
sale
s
cas»
7%
of the
ori
CO.
Offering—The price to the public will be
filed by amendment.'
''V1:
;
Underwriting—The bonds are to be of¬
for
basis
each
shares loaned to
number of
Co.,
July 6 filed a registration statement for
$4,200,000 first mortgage bonds due 1975t
Details—See issue of July 12.
: I
fered
share
and gas business.
;
^ I Offering—Of the shares registered Ben¬
nett & Co., Inc., parent of Red
Bank, will %
receive 209,970 shares in return for a like
ditional
KINGS
-
Business—Oil
;
Inc., Hornblower
& Weeks, Kidder, Peabody & Co., Merrill
Lynch,
Pierce,
Fenner & Beane,
F. S.
Moseley & Co., Paine. Webber, Jackson &
Curtis, Smith, Barney & Co., Union Se¬
curities Corp., White. Weld & Co., Dillon!
Read & Co., Inc., and Kuhn, Loeb & Co.
Ripley
statement
stock
common
Details—See
expire at noon on Aug. 4, 1945.
stock will be purchased by
Unsubscribed
underwriters
for
adjustment in
REQ-JS^^-^rcoTon
registration
shar;
War¬
rants
share
a
;.
%
■.
July
for
the
on
dividend
a
ager to aid it in obtaining
the exchange offer.
com¬
21 rights
preferred at $100 per
one
;
Underwriters— The
company
has
re~>
tained Alex. Brown ,& Sons aa dealer-man¬
>
to
underwriters.
i
and $5 in cash for each share of
ferred stock exchanged. ' i-V'';;"-:';:;.
%
5.
is offering
record
without
POTOMAC EDISON CO. Oh April 19 filed
registration statement for 63,784 share*
outstanding
of
conversion
upon
Offering—Company
for
1945.
propose®
services
issuance
Details—See
.
CENTRAL OHIO LIGHT ft POWER CO.
on
for
3%%
mon
7
July
CORP.
statement for 170,000
cumulative preferred stock
will
rate
amendment.
by
Details—See
of
and 170,000 shares of common',
(par $100)
Harriman
be
Underwriters—To
Son
registration
a
reserved
the
the dividend rate
filed by amendment.
of July 19.
Rupe
made
preferred stock (par $100),
Details—See issue of April 26.
$102..
JOHNS-MANVILLE
filed
the
July 11
a
be
of 4V2%
Dallas, Texas.
share
BROOKLYN BOROUGH GAS CO.
at
Underwriters—Dallas
amend¬
'V- • v,%';}
y'• •'
Originally Harriman Ripley & Co., Inc. and
Drexel & Co., were named underwriters.
;: T
shares of 3'/2%
amendment.
by
would
of one share
of common.
Any shares not subscribed will be offered
pro rata to the former holders of the 7#
preferred shares which shares have bee$
called for redemption on May 1, ,1945. Any
balance will be offered to the public bj
1,
filed
amendment.
be
fered initially to the common stockholder*
at $100 per share on the basis
of preferred for each share
the underwriter
Details—See
it in
amendment.
Avenue,
sale of the
bonds
on
stock:
,
pany proposes
V
.
ELECTRIC
$10,000,000
1973,
stock, will
bidding.
Offering—Price to the public is 30 cent*
share.
.
. |
be
amendment.
of
Ullrich,
Details—See issue of April
&
Bids
the company and its sub¬
to finance
accounts
receivable
applied to other corporate purposes.
Underwriters — Merrill
Lynch,
Pierce,
largest manufac¬
Christmas lighting
manufacture
Jackson
or
of
for
due
*
cumulative
as
registration statement for 333,333
a
per
group
sidiaries,
&
bonds,
whose registration statements were filed
by
;'
S-l.
Street, New fork,
ers,
'
filed
Y.
N.
>
the
remainder
group, with
of
the
Co.
...
underwrit¬
of
names
amendment.
STATE
June
on
statement
21.
'
YORK
CORP.
■.
L.
the
manage
shares of common
the
to
petitive bidding and names of underwriters
will be filed by amendment.
Bids for Bonds Asked—Company is in¬
viting bids for the purchase of the bonds;
$1.
Address—55 West 13th
I
for
the
business
NOMA ELECTRIC CORP. has filed a reg¬
stock,
stock
be
principal underwrit¬
working capital of the company and will
Sherrerd, Putnam & Co.,s be used
to finance the increased volume
& Co., Battles & Co.,
of
Scranton
Southern
istration
will
//v-
Proceeds—Part of the cash proceeds will
(7-26-45).
common
preferred
rate
•.
Offering—The offering price to the pub¬
be filed by amendment.
Fennel*
*
dividend
lic will
Registration Statement No. 2-5839. Form
6-2.
The
' '
•,.
Offering—Company
100,000
chemicals and production and
distribution of alcoholic beverages, etc.
and
Butcher &
cumulative
has
INC.
for
industrial
sale.
W.
statement
Address—1429 Walnut Street, Phila,, Pa.
Underwriters—The
ers
Chas.
INDUSTRIES
Business—Production
fered are issued and outstanding and are
being sold by General Water Gas & Elec¬
from
of
amendment.
Business—Operating public utility.
Offering—The price to the public will be
filed by amendment.
7
Webber,
&
v
-
Details—See
registration
a
par).
Street,
to-
underwriting
Paine,
Loewi
Offering—Price
filed
of June
issue
,
21 filed,
basis.
sold
them
UNDETERMINED
(7-28-45).
PUBLICKER
repre¬
share
be
offer
The
a
'v..:-'.,
Y. ■■■■.
by
and
(7-30-45).
filed
Underwriters—Goldman, Sachs & Co. is
pr-ineipai-UuUerwriief,r""""
CO.,
for
will
will
•—
June
on
COVENTRY GOLD MINES, LTD. on
the
exchange for its
6% cumulative pre¬
share
a
offer
in
shares
who
will be filed by
amendment.
will
DATES OF OFFERING
redemption
and
will
Louis,
filed
preferred not exchanged will be called
on
Nov. 1, 1945, at $103
for
registration statement for 30,500 shares of
common stock,
(no par),
The shares are
Building, Sioux
^
vv%fv.''
Underwriters—The
ers
(par $10).
Underwriters—William
■
FERRO
stock may exchange their stock
for share basis for the new
not
TUESDAY, AUG. 14
on
amendment..
being acquired
share
named
GAS
S-l.
of
LaSalle
i
cash adjustment.
(7-25-45).
$50.
Stock
Underwriter—Tellier
preferred stock ($10 par.)
the new
7%
Underwriters—To be filed by amendment.
Registration Statement No. 2-5838. Form
ROCKLAND
headed
Noel & Co.
Alstyne,
for
ENGINEERING CO.
share.
per
,
i'ering prices to the public will be filed by
registration statement for 25,000
a
common
:
Offering—The securities will be offered
sale at competitive bidding.
The of-
for
: v:
Offering—Price to the public is given
$35
purposes.
The
public offering
price will be
by amendment.
Purpose—The purpose of the issue is to
retire all of the presently outstanding 20,000 shares of 6% and 65,505 shares of 7%
cumulative preferred stock and to provide
working capital.
Any shares of 6% and
when
15 filed
June
on
registration statement for $22,-
a
NEW
Registration Statement No. 2-5846. Form
ers.
%
consummated.
stock
filed
:;t Details—See issue of July 12.
utility.
outstanding
unissued
Curtis
filed
temporarily incurred
A, par
company
preferred
Underwriters
is
underwriters
any
standing preferred.
Company will call any
of
the old
preferred at $105 per share
plus accrued dividends.
■
i
Underwriters —Kidder,
Peabody & Co
and First Boston Corp. are named prin¬
has
cumula¬
at a price to be filed by amend¬
,V'V :yy
Purpose—To retire presently outstanding
6% cumulative preferred stock.
Following
consummation
of
the
exchange proposal
all shares Of the 6% cumulative preferred
not exchanged will be redeemed at $52.50
per share plus accrued dividends.
U
and for
post-war activities
corporate
$454,
capital
change offer together with the remaining
14,495 shares are to be sold to underwrit¬
to finance the purchase of the outstanding
securities
of
Dakota
Public
Service
Co.
Public
to
of
\
"
Proceeds—The net proceeds from the sale
of the stock will be applied to the payment
indebtedness
estimated
warrants
added
preferred, with
■
by amendment.
6-1.
the
principal underwriter.
Registration Statement No. 2-5842. Form
(7-27-45).
a
for the new
have agreed
of the 250,000 shares oi
preferred not issued in exchange for out¬
The
purchase
public
pro¬
S-2.
on
utility.
Offering—Price to the public will be filed
United
of
Underwriters—Van
preferred
(par $5).
CO.
:
com¬
000.000 first mortgage bonds, due 1975,
and 90,000 shares of cumulative preferred
stock, par $100. The interest and dividend •%;
rates will be filed by amendment.
:
stock, share for share,
preferred.
to
CONTAINER
GAS
Series
30
CO.
POWER
MONONGAHELA
14.
CO.
ment;'-'
share
per
company
packing business, etc.
Offering—Holders
of
the
85,505
out¬
standing shares of 6% and 7% cumulative
Business—Public
from
The
share.
Business—Meat
for
stock
common
Minneapolis, Minn.
bank
per
$5.75
at
being
15,000 to Adolphe A. Juvilef,
and
Treasurer,
and
5,000
to
Address—221
shares
&
7
Offering—Company is offering the hold¬
of the 121,938 shares of 414% cumula¬
issue.
underwriters
equip¬
is
entitle holder
warrants
dividend rate will be filed
MONTANA-DAKOTA UTILITIES CO. has
of
stock
$5.75
at
Aug. 1, 1950.
to sell 30,000
cumulative
MONDAY, AUG. 13
a
ferred
The
June
on
-
electronic
and
common
cago, 111.
351 4-6
presently
a
offered
000
Details—See issue of June
heads
Business—Radio
(7-24-45).
&
Y.
istration
Registration Statement No. 2-5837. Form
net proceeds
funds of J. J.
York,
CUDAHY PACKING CO. Las filed
Co.,
of
S. D.
Offering—The
common
E.
ELECTRIC
4.75%
CO.
statement for 250,000
stock ($100 par). Divi¬
dend rate will be filed by amendment.
shares
Business—Public
new
CREDIT
registration
a
cipal underwriters.
preferred stock,
Falls,
50,000
New
Avenue,
THURSDAY, AUG. 16
York,
filed
and
warrants,
Sixth
Offering—The
is
balance
purchase warrants.
..
.
Underwriters—Willis
5-3,
stock
amount suffi¬
outstanding pre¬
(7-30-45).
CENTRAL
shares reserved for
50,000
a
an
its
the general
to
and
Registration Statement No. 2-5845. Form
a
ment.
preliminary
exploration;
engineering and assaying, etc.
drilling,
and
Address—510
Proceeds—For
New
filed
has
CORP.
RADIO
conversion
common
all of
The
added
stock
Underwriters—Kidder,
Peabody
heads the underwriting group.
statement for 150,000 shares
stock, par $1, of which 100,are
to be offered presently to
shares
the
preferred
share of its
one
stock, in exchange for each $750
outstanding income bond, in connection
with the plan of reorganization.
:
Underwriters—The Dunne-Israel Co.
tive convertible preferred stock to exchange
Newberry Realty Co.,
and
bonds
income
the
the out¬
i, 1959, units consisting of $750 of 4%
Oct.
ex¬
of
Newberry Co.
of its common
Ontario.
is
be
COMMERCIAL
filed
amendment.
Percy L. Schoenen, Vice President and Sec¬
retary, at 10 cents each.
Proceeds—The
net
proceeds from sale
VIRGINIA RED LAKE MINES, LTD., has
lic
May
underwriters,
Underwriters—Van
shares of
due
registration
before
lic will be 100.
a
B,
Underwriters—To be filed by
will
Offering—The price per unit to the pub¬
■
bonds,
Western
of
1965,
1,
Light & Telephone Co.
to
common.
V
will
redeem
stock.
ferred
mortgage and collateral 3%%
Series
of
filed
proceeds will be used to
the $5,000,000 Kansas
bonds, Series A, 4%,
1964, and at 105 the $1,189,000
due JUly 1,
The
issue
of
the
Power first mortgage
entitling the holders to purchase 25 shares
Details—See
104%
HAMILTON
registration
a
is the surviving
Offering—Price to the public will be
filed by amendment, after the bonds are
offered for sale, at competitive bidding.
SATURDAY, AUG. 11
SOLAR MANUFACTURING CORP. on
filed
TELEPHONE CO.,
ft
Business—The company
first
to
Registration Statement No. 2-5841. Form
S-l. (7-27-45).
principal underwriter.
23
cient
not
are
ers
of
all
Address—Sioux Falls Gas
company
resulting
from the merger
Western Light & Telephone Co. into
Kansas Power Co. Public utility.
,
at
J.
as
shares of preferred
Details—See
INC., has filed a registration statement for
first mortgage bonds, Series A,
due July 1, 1975.
The interest rate will
be filed by amendment.
;r :
;
Address—Huron Building, Kansas City,
Kan.
::
:'.V
redeem
to J.
shares
mon
their
wholly-owned subsidiary,
WEDNESDAY, AUG. 15
Underwriters—Lehman Brothers is named
V
advance
to
11,672
of¬
portion
to redeem
the
changed pursuant to the exchange offer.
Public
registered 65,000 shares of 4.75%
LIGHT
50,986
of
such
of stock.
,
statement for 150,000 shares
Of
cumulative preferred stock, $100 par.
The dividend rate will be filed by amehd-
the
made.
will be used
tive
WESTERN
of
adjustments.
of the unexchanged
will be
A-2.
$6,200,000
registration
meht.
com¬
outstanding.
with
standing Series A 5%
Triumph has 494,722
stock
(7-26-45).
pet
Saint-Phalle
de
Underwriters—Andre
common
Purpose—For exchange
S-l.
Unit.
Co.,
the books of the
on
$3,626,682.
of
to holders
Proceeds—The net proceeds of the financ¬
Registration Statement No. 2-5840. Form
fered
ishares
recorded
at
pany
of July 26.
issue
Details—See
into a controlled sub¬
Triumph
date, the statement said.
Assuming all of
the shares of Triumph are exchanged pur¬
suant to the order the shares of Triumph
INC. on July 17
statement for 505,000
capital stock, par $1,
A
convert
sidiary of Noma as of July 31, 1945, not¬
withstanding the. fact that the exchange
offer will not be consummated until a later
HOMES,
Class
of
time
offer
to
basis
fering
period designated.
The result of
the exchange offer, when effective, will be
SUNDAY, AUG. 5
registration
a
share
issue
the
subsidi¬
its
shares of Series A 5% preferred stock an
opportunity to exchange such shares for
the new preferred stock on a share for
least .80%
to
ANCHORAGE
expected
acceptance of the offer by the holders of at
of the stock of Triumph within
course
SEC..'';
filed
the
is conditioned upon
The offer of Noma
which
In
subsidiary of Noma, owns 200,000
of the common stock of Triumph.
owned
grouped according to dates
registration statements will
become effective, un¬
accelerated at the discretion of the
days
formerly known as Triumph
Inc.,
Explosives, Inc., on the basis of two shares
of Triumph common, $2 par, for one share
of Noma.
Ansonia Electrical Co., a wholly-
and
aries operate 491 retail stores in 45 stateS,
selling a variety of merchandise.
Offering—The price to the public will be
filed by amendment.
The underwriters are
Thursday, August 2, 1945
13,056
shareB
ft
POWER CO. on
statement for
a registration
of
Class
A
5%
cumulativ*
preferred stock.,par $100.
" i-t
Details—gee issue of March 8,'"
;
"
"■
'
'
\::
Volume 162
Offering;—The
shares
of
Its
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4408
Is offering 13,056
preferred sharef
company
Class
5%
A
y,ln conversion share for share of the out¬
standing 5% cumulative preferred shares
held by others than Cities Service Power
why railroad, light,
lew
Group of Opinions Presented
agents
Snider
and
secure
preferred
Co.
consents of
the conversion.
shareholders
series
due
to
to refund the
bonds,
4!/a%
mortgage
1947
principal
gate
#
first
to
and
(Continued from page 516)
procure
The company also proposes
$4,806,000
exchange
as
the
reduce
amount
of
aggre-
is
supposed
the SEC
If competitive bidding did not exist and
not support this policy then
would be able to buy securities at lower prices.
to
protect.
would
the public
$#750,000 by redeeming the outstanding
to
bonds and issuing $3,750,000 of new bonds.
The bonds
will be
sold
at
SEABOARD
000
FINANCE
registration
a
5%
10-year
CO.
sinking
for
fund
12
July
on
statement
$3,000,-
debentures
due Aug.
1, 1955, and 70,000 shares cumu¬
preferred stock, series A, with com-
lative
stock
mon
purchase
warrants.
July 19.
Details—See issue
Offering—The
of
price
100
for
the
for
the
public
Is
share
the
to
preferred.
debentures
Underwriters—The
and
$30
underwriting
IS' headed
SOLAR
AIRCRAFT
registration
of
statement
stock,
common
CO
!
group
Noel
by Van Alstyne,
Johnson, Lemon & Co.
and
per
During this period of cheap money high grade industrial issues
bring a somewhat higher price under a system of competitive
bidding so if that is what is desired let them go to it.
Perhaps some
time in the future money will not be so easy and when that time
comes any gains that have been made during this easy money period
will be given back under a competitive bidding system.
We are a small shop and at one time did most of our business
in Municipal Bonds.
We handled all the high grade corporates
we could place.
Our stock business contributed a small part of our
may
gross.
for
shares
50,000
Ottering—Price
by
to
will
be
amendment.
Underwriters—Reynolds & Co. is named
principal underwriter,
handle
few
municipals,
It appears to me we
the near future.
in
lative
preferred stock (par $100) and 128,(par $1).
A
stock
common
Service Co.
scribe
Holders
—-.
of
will be
outstanding
the
of
Public
Southwestern
given
the right to sub¬
the
to
128,935 shares of common at
the rate of one share of common of South¬
western
Electric
five
each
for
of
shares
Public
Southwestern
of
common
The
Service.
price will be filed by
amendment.
The public offering price of
any
unsubscribed
common
and
of
the
bonds and preferred stock will be filed by
subscription
amendment.
Underwriters—To be filed
STOVE
TAPPAN
CO.
by amendment
July
on
filed
6
a
registration statement for 25,250 shares
capital stock, par $5 per share.
Details—See issue of July 12.
of
'
Offering—Stockholders of record July 24
right
the
given
share
are
per
in
ratio
to subscribe at $27
of one new for eacn
The unsubscribed shares
four shares held.
will be sold to the underwriters for
to the
i
filed
value
CAMERA
registration
a
shares
500
Class
Cleve¬
Co.,
CORP.
March
on
statement for 663,stock,
par
common
Of the total
are
Issued and outstanding and
being sold by certain stockholders.
530,500
are
Details—See
Of
issue
March
29.
Offering—The initial offering price is $5
offered
to
Of
share.
per
133,000
the
shares
for account of company,
offered
be
to
employees
Shares not
ahare.
20,000 are
$4.25
at
subscribed
being
for
by
per
.
em¬
ployees will be sold to public through un¬
derwriters along with the rest, of the public
offering.
For every ten shares of common
stock bought, purchasers, other than em¬
ployees, will receive warrants to subscribe
to one share of common stock, at $5 per
share, on or before Dec. 31, 1948.
Em¬
ployees will receive such warrants for eacb
five shares of common
'Underwriters
named
♦
Cerf
D.
will be handling only U. S. Govts and stocks
the stop
Co,
the
Comnvis^ion^-saii*^itr*fssatisfied
■ that the
filed by the com-,
substantially correct
cited
in
those
*
*
.
MOINES
DEALER
loans.
We
in
conclusion
do
of
the
proceeding
relating
to
the
would
be
more
believe
that
the
industrial
field
amenable
job of helping to
pay
to regulation and could also do
the national debt.
1(
V7::V-: a'-V:V;
lends
•'*
.
7-.
v
,»
-
>7.'
-v*
c
*;
ALEXANDER
better
a
We
*
!». •*'
'* ; i\ \
7-"
1
<
MACKENZIE
a^^§aifistcompetitive bidding
all corporate issues.
It
may-seem to have been successful but I believe this is only due
to continually rising prices.
It works a hardship on the small dealer.
(Continued from page 541)
paragraph of" the
said Article 3.
v
IX. In accordance with Article 1
of the Agreement of today's date,
the Anglo-Turkish Clearing oper¬
under the Agreement
of the
3rd
February,
1940,
will
be
■wound up by the following mefis-
777 y.;'./:?;:'7l;7 7.'
The
Clearing Office will
cease
operations on the General
Account after the 21st May, 1945,
except for such adjusting entries
as may be agreed with the Central
be
necessary,
and
will
then transfer any balance remain¬
that account to the Central
on
Bank's
Bank
that
may
funds
"Turkish Account"
of
England.
the
aforesaid
require
for
given thought to this last idea,
7
*
7:Ov.;;
■■
■?
/7i-y.;;"77*"77
NEWMAN
small
firm and engaged in" the security business, I
bitterly opposed to competitive bidding for industrial
not large enough to take underwriting positions,
competitive bidding for railroad and public utility issues has prac¬
tically eliminated us from participation in this business.
In other
words, from the client's viewpoint, because he happens to live in
a small
community, he does not get a chance to buy new" issues in
the railroad and utility field.
It goes without saying that the margin
of profit for the selling group in a competitive issue is
ordinarily"
a
naturally
issues.
am
Since
we are
small that "we cannot afford to be interested.
so
•
7
•
In my mind, the trend
of the security business, as
result of
a
SEC regulation is definitely toward eliminating the small/firm Which
does not have the volume to do business on the narrow
margin
that the firms located in the financial centers have.
In other words,
for the investor and supposed regulations
for large business, in the long run is going to result in the elimin¬
ation of small business just as the NARA did in its
heyday. , 7 ;
SEC's
called protection
so
ELI T. WATSON
New York
I
cannot
see
;7-7
City
where
anybody except
being benefited by
some
business.
the
at the
To the extent
adjustments
the
provision of
General Account,
such provision will be made from
the Central Bank's "Turkish Ac-
It is certainly a sorry mess, and in my opinion could have been
easily avoided if the Eastern Group of underwriters had thade
so
room
on
around the table for the Western
Group.
777
J. WERSCIIKUL
LESLIE
L. J. Werschkul
& Sons, Portland, Oregon
You have asked for opinions on the subject of competitive bid¬
ding for new issues.
We believe that in case the company in
question desired competitive bidding, this privilege should not be
denied.
Such circumstances however would, we believe, be greatly
minority.
■
"7
'
In your asking how we feel about compulsory competitive bid¬
ding, we believe it to be disadvantageous all around.
Most of our
great corporations have grown up with the counsel of one or more
the
.
.
underwriting houses and such a relationship has distinct advantages.:
Between them they have the feel of the market and arrive at fair
prices with reasonable (and certainly not unreasonable) allowances
for costs of distribution.
Using this sort of team work produces
good results.
'
>
\
A.
McKINNEY
V. P., McKinney-Ohmart Company, Wichita, Kans.
Some
wisely said "That government is best which
Within limitations we believe this statement is
general way we believe that it should apply to the
field of public financing.
Unless there are good and sound reasons
one
very
least."
governs
In
sound
financial
counsel.
RALPH FORDON
requiring corporations to sell their securities at the highest
price received at a competitive sale it goes without saying that the
government should maintain a "hands off" policy.
Now what are
facts?
Watkins
I
opposed to
vital publication.
a
In the first
place
we concede
count" at the Bank of
Any sums thereafter recov¬
ered by the Clearing Office shall
be transferred by the Clearing
Office
to
the
Central
Bank's
"Turkish Account" at the Bank of
(3)
drawn
the
;
Any
on
.77;7V';.....
orders
of
payment,
the General Account by
Central
Bank
but
that there
England.
t (2)
England.
not
deliv¬
Done
this
from
the
in
duplicate
in
day of May,
the
Turkish
language,
soon
ered
as
texts
equally authentic for •all
Richard Law. 7
M. C. Acikalin. |
Cahid Zamangil.
Procotol
and
thereto their seals.
have
affixed
Incidentally, you have
*
*
Small
in
favor of
competitive bidding.
to
investors
selling
"
•
t
Prevents
a
/
group members.
and institutions do not get
profit
'
wider distribution.
.
V'7'7
opportunity to buy
'
-r777'' 7v77:
■■■
7-7
7777:7777a;: 7;:
,,7 7/
H. P. Pratt
7,^>. 1
II. PRATT
& Co.,
Seattle, Wash.
■
I wish to say that I oppose compulsory
for all securities for the following reasons:
1.
It
is
a
form
of
regimentation.
;
competitive bidding
w
.
2. It prevents the investment bankej* from the advantages 01
obtaining the full and complete detailed information which he wouid
necessarily obtain were he the issuer's advisor.
;
1
1
1.
ent
*
been
attractive issues.
Central
Bank's "Turkish Account."
In witness whereof, the under¬
signed, being duly authorized to
that effect, have signed the pres¬
Detroit, Mich.
tendency of overpricing.
a
^
(L.S.)
(L.S.)
(L.S.)
Inc.,
shall be consid¬
purposes.
V'
has
Reduces
possible and agreed\^between
the Contracting Parties.7 There¬
both
have
Never
It
as
after
Fordon,
competitive bidding.
A. CLEVELAND, O., DEALER
London
1945, in
as
&
■/
A translation shall be made in¬
to
am
good reasons
some
English language. !.\
Clearing Office by the
21st May, 1945, shall be forwarded
to the Bank of England and shall
discharged
are
fourth
the
ered to the
be
now
a
for
the
the abnormal demand
when there is not
times
existing, compulsory competitive bidding could result in prices out
of line with the market.
This would result in dissatisfied purchasers.
It would also leave the industrial organization without steady and
.
ing
B.
*
Pres., Newman and Company Colorado Springs, Colo.
Being
In normal
W.
the Value of the articles referred
to
if the SEC has
ex¬
Payments Agreements
Bank
wonder
*7
in
77
•
Mackeijzjg & Co., Inc., New York City
warrants.
tb in the second
not
competitive bidding.
Moreover, it seems to us
that the spread or profit in some of the recent industrial underwritings must indicate 'extremely intense competition now existing
among some of the large underwriters.
As a decided improvement on the whole subject of competitive
bidding, we would like to suggest that the SEC provide a rule by
which there would be not less than \lU points profit or spread in
any bond underwriting, and not less than a 3% spread or profit
in a preferred stock underwriting.
The investing public gets stuck
anyway, and a more profitable underwriting business undoubtedly
sound.
(1)
We
.
the deficiencies
notice
lingfa'TurErisft Trade,
ures:
■"■
.
generally is subject to too much regimentation now.
We decry any attempt to fix upon private industry (not
monopolistic
in its nature) the competitive
bidding rule.
If it is adopted why
not go the whole way and make it also apply to short time borrow¬
ings—have the commercial banks bid competitively for short, term
itself properly to
\
ated
of
the issuing companies,7in
instances, are
competitive bidding. 7 On;
the other hand the investment banking fraternity, and
by that I
mean the underwriters are having their bones picked bare. 1
;
The commissions In Selling Groups have dropped to such srriaU
fractions that the thousands of dealers throughout the country cannot
afford to participate.
By the time they pay their phone calls and
clearance charges most of the new offerings show them a loss rather
to us that in recent years the underwriters themselves have made
than a profit. v77.'v:
material improvements in some of the standard practices and re¬
quirements and safeguards relative to the securities, and it would ; ^.7 There is just one bright spot in the situation, as I See it, and that
be our belief that further improvement in this respect "may naturally is if we did not have competitive bidding the whole of new underbe expected as the large institutional investors dominate the market writings and refundings might drop into the lap of the big life
insurance companies, and there would be no investment banking
as they now are unquestionably doing.
-
is
order proceedipgrE^tfSv-
pany
cept
DES
.
,?>'•
underwriter.
April 10,
the
same
Business
of
stork purchased.
Floyd
—
principal
menced
consumers.
Our
that there are two
us
line
reasoning does not follow in com¬
petitive lines of industry.
If an industrial corporation submits to
an
overcharge in obtaining capital it merely gives its competitors
an advantage.
Competition - will correct the abuse and punish the
offender, because the overcharge cannot easily be passed on.to the
common
primary factors which made
competitive bidding for utility securities and railroad
for
case
Stop Order Action—The SEC on June 29.
dismissed
corporates.
reasonable, practical application.
In both instances
regulatory bodies of Federal and State, or both, supervised many
aspects of the business including the establishment of rates; secondly,
the type of financing used is in general not complicated and follows
a
fairly set pattern; and, thirdly, and particularly with reference
to the utility business, the comparative stability of the business
lends itself to a simple and fairly cut and dried method or formula
of financing.
It seems to us that in the industrial field, none of the above
factors apply: there are no rates to be passed upon, there" is litlle
stability in the character of many industrial enterprises, and there
certainly is no standardized pattern for the type of security to be
used.
77
It might be that the character of some industrial financing
might be improved from the standpoint of the investor, if there were
an authority
or supervisory body of adequate ability and proper
intent, but we know of no such and certainly would not propose
the establishment of another Federal Agency or Bureau.
It seems
share, with Class A com¬
cent a
one
A
stock purchase warrants.
mon
the
to
seems
the
.
&
heads the underwriting group.
"UNIVERSAL
19
offering
public.
Underwriting—McDonald
land,
It
securities
''•Details—See issue of April 26.
Offering
grade
grade Bonds and
SERVICE
ELECTRIC
935 shares of common
high
or
So let the big institutions compete for the high grade top stuff,
Municipals; Utilities, Hails, Industrials.
CO. April 18 filed a registration statement
for $2,375,000 first mortgage bonds, 3%%
series due 1975; 8,500 shares 4%% cumu¬
•
However
R.
*
SOUTHWESTERN
<
function.
It
may
be that regulation of capital
financing is equally reasonable.
Perhaps the competitive bidding
rule is the best way to gain for consumers the lowest
possible cost
of the necessary capital required by these
monopolistic public seryjee
corporations.
7777>77777';;: .7:-'
,
.
>';<
July 19.
the public
.
business is almost entirely in 2nd and 3rd
stocks.
....
Details^-See issue of
fUod
..
We
12 filed
July
on
$1.
par
Co.,
&
II. HUSTON
Harold H. Huston & Co., Seattle, Washington
V
filed
a
HAROLD
competitive bid-
dlng.
,
its policy and
reverse
indebtedness
its
gas
securities at competitive sales.
are
governmental
Co., G. H. Walker & Co. and
Wright,
to
and telephone companies should be required
These public service -indusmonopolistic by. nature.
In theory at least, any exorbitant
of financing is loaded on to the consumers,
Regulation of
charged the consumers "is now generally accepted as a proper
sell
tries
rates
Underwriters—The company has retained
Prescott,
to
cost
& Light Co.
Estabrook &
543
Series
"Treaty
6269.
,
2. Cmd.
3.
6269.
4.
3695.
7
(1941)," Cmd.
/
5754.
"Treaty
'■
No.
Series No.
\
7
(1941),"
Cmd.
'
"Treaty Series No.
40
(1930)," Cmd.
3. It
prevents the issuer from obtaining the
which in many, and probably
investment banker.
expert advice
from an
close and confidential
most cases, he p.eeds
-1
England Public Service
New
"
Trading Markets in
Bendix Home
Foreign Securities
Bendix Helicopter
Seeger Sunbeam
Wilcox & Gay
Appliances
Jacob Ruppert
Clyde Porcelain Steel
NY
Telecoin Corporation
Majestic Radio & Television
SECURITIES
FOREIGN
Du Mont Laboratories
Lear Inc.
is
jyoL masks & r.o.
Bendix Helicopter
Globe Aircraft
1-971
Amalgamated Sugar
Ironrite Kroner
Teletype
Utah Idaho Sugar
Baltimore Porcelain Steel
MARKETS
Mississippi Central Common
Majestic Radio
Du Mont Laboratories
U. S. Finishing
M. S. WiElf & Co.
Y. Security Dealers
Members N.
SPECIALISTS
Telephone
50 Broad Street
New York 4, N.Y.
•
MARKS & CO. Inc.
AFFILIATE: CARL
INCORPORATED
Members
Governments
downward .drift
. Declines were
market continued its
greater part of last week, on light volume. . .
the
bond
Government
The
about the same as
those for the
downs took
day.
, . .
York of
change in the discount rate came too late in the afternoon to have
any effect, since the Government market had closed. . . .
On Friday prices moved cautiously ahead to end the day on
the plus side.
The recovery has been more vigorous this
no
.
.
in evidence in the Government
bond market is due largely to the fact that the discount rate was not
changed although it is only one factor in the situation. . .
about
of
decline
July 25th.
.
.
LARGEST DECLINE
again showed the largest
eligible 2Vz% due 1967/72 went off more than a
longest maturity
The
greater support to the
The
next March.
.
.
ten-year maturity range
WEAK
partially exempt obligations were marked down, as the last
four maturities showed declines from % to Vz point. . . . The 2%%
due 1960/65 was the largest loser, ... The recession in these bonds
was due in part to the recent decline in the* taxables and to Senator
George's statement that taxes should be revised downward as soor
as possible after the ending of the Japanese war. ,y. .
The 2s at last Thursday lows had given up a considerable part
The
their
of
recent
with
gains,
losses
restricted
due 1956/59,
issues
1952/54
... The
were
led
v
which was off about % of a point at last Thursday
the year, made on the 15th of last month. . . .
The other restricted issues at last
thanVz point from their highs.
since last Friday has erased a large
week's lows
.
.
low
■
.
part of the recent decline.
.
is
believed
that
the
New
commitments have been
into the basket at one time.
market
see
if there will be any change in
are
that the Governmental authorities
the discount rate.
concentrated
recently
in
the
eligibles and the restricted issues.
intent
are
lative purchases of Government bonds.
commitment.
•
result
.
.
in
satisfactory
a
v
;
Ire Offered
issue
.
gage
the
redeemable to
and including
148 State
1946, at 105%, and there¬
after each June 30 at graduated
prices to 1001/2% to June 30,
Publicly
both
terms,
Proceeds
of
Coast Corp., priced at
the
from
approximate $2,455,000,
which about $1,490,000 will
will
used to redeem at
of
be
104% the $1,-
437,000 of first (closed) mortgage
5%
sinking fund bonds due Dec.
The
and 31, 1955.
102Vz% and accrued interest.
bonds are due June 30, 1960,
INDEX
be
authorities to put an end to it.
Broker-Dealer
BANK
-
Pfd.
INDUSTRIAL
—
REAL ESTATE
—
BONDS, PREFERRED AND
Grinding Machine Co.
'
5's
gear
Cash-equity
Book
value
per
per
No
BOUGHT
$7. pius
share.12. plus*
Average 5'yr. earnings
per
3hare..
2.67
Telephone COrtlandt 7-0744
Bell Teletype NY 1-83S
Current dividend.,..,... .Quarterly
208
537
532
Report
532
Reporter on Governments
Utility
Securities..
Securities
................
Securities
Salesman's
54su
521
52c
Comer...,...
Markets—Walter
53^
White
5l£
...........
pages
COMMON STOCKS
524 and 525.
WANTED
SOLD
—
QUOTED
Blocks
HUGHES & TREAT
St., New York 5, N. Y.
Tel. BO 0-4613
So. La
of Securities
REITZEL, INC.
Salle St., Chicago 4
,15
RANdolph 3736
6% PLUS
Inquiries Invited
40 Wall
—
RED, MITCHELL 8
Average 5 yr. dividend per share..72
WESTERN TJNION
New York 5
520
preferred stock
share..,....,..,,
EXCELLENT POST-WAR PROSPECTS
120 Broadway
Notes.,...
518
Reporter's
grinding machines.
No funded debt
MARKET TO YIELD
W. T. BONN & CO.
Literature...
and
526
Recom¬
Pennsylvania Securities Section
on
LUMBER & TIMBER
................
Investment
and
Notes
Tomorrow's
539
513
Funds
Securities
530
Incorporated 1908
of
Central of Georgia
Macon Northern
Broker
Says
Largest American Manufacturer
Pressurelube, Inc.
111. Power Div. Arrears *"
U. S. Radiator,
-
Railroad
:/
INSURANCE
Items
Security Flotations 542
Canadian Securities
Dealer
Real. Estate
...
-
New
Calendar of
Public
Specializing in Unlisted Securities
Stocks........
Personnel
Business Man's Bookshelf.
Our
If this borrowing, buying and
Gear
Pfd.
Eastern States,
Insurance
mendations
stopped by warnings there no doubt will be direct action by the
money
and
Bank
NSTA
PUBLIC UTILITY
Teletype BS 250
:
1956.
financing
to
trading by individuals, financial institutions and corporations cannot
:
'
4V4% sinking fund bonds
bank
the
v-v'-
St., Boston 9, Mass.
Tel. CAP. 0425
and thereafter at par.
public offering of a new
of $2,500,000 of first mort¬
stopping specu¬
on
V
for the entire
June 30,
a
South
price
.
.
2J
vv--
This type of buying has
...
longer
...
.
BOston
direction,
Thursday to
Indications
improve gradually with some hesitation looked for on
10
1922
Tele.
•
Municipal News
continue
will
In
Capital Stock
They are advising
advantage of price movements in either
should
which
■
...
Our
been
England Unlisted Securities
Mutual
Government
New Eng. Markel
Frederick C. Adams & Co.
purchasing be done on a scale basis. . . .
It was pointed out that this procedure makes it possible for
made
.
SECURITIES
a
well as speculators
GRADUAL IMPROVEMENT
It
Securities with
They are looking
banking : group headed by
Paul H. Davis & Co. on Aug. 1
off slightly
were
the
Stocks and Bonds
24 FEDERAL STREET, BOSTON
A
The uptrend in these bonds
.
Industrial Issues
Specialists in
number of speculative
Sooth Coast Bonds
the downside by the 2J/4%
on
The 2Ms of 59/62 and the 2^s due 6/15/67/72, the Seventh
War Loan obligations, made new lows since they were traded in
the open market, with decline from the middle of July to last
week's lows amounting to almost % of a point. . . .
more
others, means that borrowings for
specialize in all
Insurance and Bank Stocks
Public Utility
TEXTILE
.
,
are
from the high of
ft.
.
buyers to take
V
RESTRICTEDS SUFFER
The
.
put all their eggs
that
from its
of the decline in the 2s and
high of the year. . . . A substantial part
IVzs was made up this week. .. .
We
Manufacturing
having been
point
Vz
to
up
registered in the last two weeks. , . . This brought the 2s of
1951/55, 1951/53, 1949/51 back to the levels of early April.
IVks due 1950 went to a new low of 101, off about Vz point
BS 328
beginning to register a real interest in the
Established
for a buying level, which may have
Tel. HANcock 8715
already been reached, since the market has turned up although
volume has not been large. ... A cautious attitude is still advisable,
however, because of the uncertainties that can cause unsettlement J
in the Government bond market, which may result in sharp and fast
movements in both directions. . . . Although money market experts
Pollak
and shrewd traders are of the opinion that the Government bond
market is in a buying range, they are not recommending that buyers
market.
•,
PARTIAL EXEMPTS
...
liquidated, investors are
This is attrib¬
. . .
Teletype
Hanover 2-7913
CAUTION ADVISED
resisted the decline quite well,
high.
market.
decrease in loans to
Now that a large
2¥z% due 1956/58, has
New fork
Hubbard $442
Investment Trust Issues
that dealer positions
will be able to lend
purchase of Government bonds by investors, as
and "free riders" are being paid off. . . .
...
being off less than % of a point from its
uted to the fact that it will be within the
MASS.
9,
Beaton
.
The decline in brokers loans, indicates
have been lowered substantially and they
decline as the
bank
half-point. . . .
This bond at the low of last Thursday had given up 1 V\ points since
July 16th, the day that the reports of peace developments and dis¬
count rate changes became important market factors. ... Despite
the recent price improvement this bond is still well under its high
BOSTON
-
with the decrease aggregating $331,to the week ended July 25th. . . . Loans to
to July 25th, are off $207,000,000 with a
$100,000,000 being reported for the week ended
V-/'
for the year.
RALPH F. CARR & CO.
000,000 from that date
others, from July 3rd
Undoubtedly the better tone now
The
•
June 27th,
since
week
each
:
Waltham Watch Common
.■.
.
.
>-*•>/'.
...
England Co.
Schoellkopf, Hutton & Pomeroy
market improved
of weak hands into strong
ones, as prices receded. . . . Nevertheless there are obligations that
still have to be absorbed before the market will be in a strong
position again. ... The system loans to brokers and dealers for
carrying Governments have declined for the last four weeks, with
the decrease from July 3rd to July 25th, amounting to $356,000,000.
Loans to others are down $340,000,000 for the same period, . . .
New York City member bank loans to dealers have been lower
The
week.
Northern New
1-576
with securities moving out
last week,
the weakness in
ipation of a change in the discount rate, expected that
announcement by the Federal Reserve,' Bank of New
Worcester Trans. Assoc.
Teletype
york
new
position of the Government bond
The technical
elections, and in antic¬
following the British
Bell
telephone
Enterprise 6015
2-3600
Oceanic Trading
5
YORK
NEW
STREET,
TECHNICALLY STRONG
The sharpest mark-
in sympathy with
place last Thursday
other financial markets
.
.
Norma Hoffman Common
Association
Dealers
Security
National Service Co. Pfd.
previous week, although a substantial
of a marking down of
part of last week's recession was the result
bids rather than the pressure of liquidation. .
York
philadelphia
telephone
RECTOR
.
New
NASSAU
45
CHIFPENDALE, JR.
By JOHN T.
1-1397
T.
Kobbe, Gearhart & Company
CHICAGO
n
"Qui Reporter on
N.
Teletype
Ass'n
HA. 2-878D
Exchange PL, N. Y. 5
40
HAnover
2-0050
1945
Thursday, August 2,
& FINANCIAL CHRONICLE
THE COMMERCIAL
544
Tele. NY 1-1448
,
TELEPRINTER
BELL
SYSTEM
TELETYPE
CG-989
Hill, Thompson & Co., Inc.
Markets and Situations for Dealera
"WUX"
120
Broadway, New York 5
Tel. REctor 2-2020
-
Tele. NY 1-26S0
@FedFRASER