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SEP i
1944
Section 1-
A**1
Final
Edition
ESTABLISHED
In 3 Sections
YEARS
OVER 100
-
ommetci&L
Reg. U,
Volume
Price Control
Lewis In AIB
CHESTER BOWLES, OPA
By
of the North
Association, to
the- post
tfte Amer¬
ican" Institute
Banking,
;of
i ed ucational
1
of the
section
American
been
by
The
Harold
war
paying
dends in great
of
ciation. v.;
Asso-
the
'
Lewis,
:■{ who
strides
-
made
toward
J s'tructor
.speech
t
Leroy
Lewis '
ahead
?V*■.j
iolina, for eights years, has been
identified with Institute activities
C
North
j: "y
been an instruc-j
that time, having
tor in
:
public speaking at A.
chapters.
Carolina
its
He
,.r;,'*'•:
Mr.
Lewis
front
Mc-
master's de-
degree. He took his
1
at the University of Michigan
and did graduate study at Norths
western University.
From 1930 to 1935 Mr. Lewis
gree
(Continued on page 904)
v-
'
.
v,.,-
.
.V-. '• T •" '*-■
V-'
Index
>
of
page
-
t
erything
when
need
it.
job and for
a
i
904
done
^
;
-
y
our
the home front
'
the
By JOSEPH A.
MATTER
(Page 911)
Capital Needs And Other
Professor
Aug. 25, 1944.
on. page
894)
of Economics,
Request L,
State.and
Geneva Rep.
.
Established 1927
INVEST^lENT
>?
BOSTON
Teletype NY 1-210
Troy
Cleveland
/
./ :.
York 5
-
;
.
-
.
Trading
Markets,
BROKERS
WALL STREET
48
and COMPANY
634 SO.
SPRING ST.
LOS ANGELES 14
NEW YORK 5
Hardy & Co.
York Stock Exchange
Members New York Curb Exchange
Members New
New York 4
30 Broad St.
Tel.
DIgby 4-7800
CHASE
THE
NATIONAL BANK
OFTHE CITY OF
Tele. NY 1-733
NEW YORK
A.*
I
always
New
Philip Carey
Manufacturing Co.
ELECTRONICS
RAILS
'v
INCOirOIIATI*
Buffalo ^ Syracuse
Williamsport
Dallas
I
DEALERS
from
HUGH W. LONG
Albany
Pittsburgh
Actual
or
PHILADELPHIA
■
FROM
AUTHORIZED
'•
Bond Department
and Dealers
BE
MAY
OBTAINED
'
SECURITIES
64 Wall Street, New
New York 4, N. Y.
Bonds
for Banks, Brokers
R. H. Johnson & Co.
Stock Exchange
Exchanges
g BOND
by Con¬
Boren at the annual
meeting of the National Security
Traders Association in the Palmer
House. Chicago, Aug. 25, 1944.
(Continued on page 893)
Service
PROSPECTUS
Members New York
Chicago
know where it is
you
now—210, and I'm still a dissenter.
Anyway, I want these opening
Bond Brokerage
VICTORY
Hirsch, Lilienthal & Co.
HAnover 2-OGOO
course
side.
Municipal
for -t
25 Broad St.,
Of
dis¬
" the
senting
'
(Page 913)
Brooklyn College
(Continued from page 884)
.
Buy War Bonds
Reconversion
-
80,
Problems Of Small Business j
By IVAN WRIGHT
Taxes and
London
and
it
(Page 909)
Corporation
Cutler, Attorneys, Chicago
Chapman &
Francisco Chamber
San
(Continued
other
,
and I was still
on
Of Post-War Municipal Financing
Some Practical Phases
i
of Commerce,
and
bitious
made
Lyle H. Boren
j
i n. Then
got am¬
*An informal talk made
*An address by Mr. Bowles be¬
on
g a
they
'-
v
"no"
voted
a
cl
and
a n
then-to 60,
reconversion.
and
fore
Copy
again,
I
it
and
"no"
voted
gressman
first
do to
can
went to 50,
I
it
but
Then
was.
in
By P. L. SMITH
President, Middle West
our
'
.
success¬
fully,
In
Public Utilities In Post-War Era '
The Outlook For
to face the problems of peace
pare
:
be
could
it
long time to
will continue to be
on
Supplement:
think
didn't
I
of these papers, we
give the appropriate page number on which they appear jn
the NSTA
billion.
40
to
listing the titles and authors
addition to
and
where
That is
that
not
Then
they raised it
eleventh annual convention
Association held in Chicago
Aug. 25-26. As our readers will undoubtedly be interested
these additional articles we enumerate them herewith.
going
blast,
But, while doing everything
job.
we
they
they need
come
o
ment, issued today, covering the
of the National Security Traders
help win the war, we must pre¬
\
i-'py-',-
regular features on
de¬
war pro¬
full
at
first
d
n
finance today,
lars.
The debt
national debt limit was 25
billion
dolwas
those boys shall have ev¬
that
so
is
here
are
duction
Bowles
Chester
Alester,
'
A
..
us
termined
keep
of
native
a
Oklahoma, and a graduate of Oklahoma City University
from which he obtained his B. A,
war
the Thome
on
:
.
is
the
all of
joined the North
Association as
a
year and a halt'
Eu¬
phase
ended.
I. B;
Bankers
secretary
Vago.
even,the
-of
confusion in the world of
situation a number of special arti¬
cles which would ordinarily appear in this portion of the
"Chronicle" had to be incorporated in the special supple¬
our
before
ropean
of
great deal of
a
Because of the paper
lies
for
boys
■
Tarheel State for most
the
in
a r-
There is
train
strain are now When I went to Congress the
Special Articles
fin NSTA Supplement
hard
fighting
Durham.
sity,
of
lot
Univer¬
Duke
•
a
:
^
>
,
More
e
know, l
o f
course, that a
in
.
,
high.
being
victory.
;in-
was
Against Growth Of Bureauc¬
Congressman Boren Warns
divi-«>
'
Mr.
Stops.
climactic phase.'The long months of
has entered its
Stonier, exec¬
1
Oklahoma
In Washington As A Danger To Free Enterprise
Warns Against
And States That The Removal Of All Restraining Handi¬
preparation, the long months of sweat and
ing and
utive manager
I
BOREN*
racy
And Income.
The Level Of Production
an¬
nounced
'Dr.
Administrator*
Holds Only Government Can Underwrite Regimentation.
Employment.
Bankers
jAssociation,
has
By Hon. LYLE II.
Representative in Congress from
Repetition Of Conditions Following Last War and Lists
capping Regulations Are Musts For Our Economic Sur¬
The Three Objectives Of ; Post-War Control As (1)
vival On The Basis Of A Free Economy.
Holds About
Avoid Price Inflation, (2) Prevent Deflation In Our
Nine-tenths Of All The Bureaus In Washington Ought
Economy and (3) Keep Up Full Production And Full To Be Abolished And Urges Stronger Fight Against
of
;
;
Control Points Out That Impact Of War
Does Not End When Shooting
director
educational
assistant
of
Leroyv Lewis,;
Carolina Head Of Price
of
Appointment
secretary
Copy
60 Cents a
Bureaucracy Vs. Free Enterprise
During^The
Period That Lies Ahead
Educational Post
Bankers
Price
York, N. Y., Thursday, August 31, 1944
New
Number 4312
160
S. Pat. Office
Public Service Co.
International
:
Detrola Corp.
INDUSTRIALS
England
PREFERREDS
V
and 7%
6%
Plain
and Prior
U. S. Truck Lines
Bull, holden
MEMBERS
NEW YORK
& C°
STOCK EXCHANGE
HART SMITH & CO.
Kobbe, Gearhart & Co.
REYNOLDS & CO.
INCORPORATED
Members New York
Members
N.
Y. Security
Dealers Ass'n
NEW YORK
5,N.Y.
TELEPHONE-RECTOR 2-6300
New York 5
45 Nassau Street
Tel.
REctor 2-3600
Telephone:
Teletype N. Y. 1-570
.
Philadelphia Telephone:
Enterprise 6015
""
Members
New' York
52 WILLIAM
120 Broadway,
14 WALL ST..
Stock. Exchange
New York 5, N. Y,
REetor 2-7400
Bell Teletype
NY 1-635
ST.,
Bell
New
York
Dealers
Security
N.' Y.
5
Teletype NY
Assn.
HAnover 2-0980
1-395
Montreal
IRA HAUPT & CO.
Members
of
Principal Exchanges
111 Broadway,
Toronto
REctor 2-3100
N. Y. 6
Teletyoe NY t-1920
FINANCIAL CHRONICLE
THE COMMERCIAL &
882
Thursday, August 31, 1944
v
Trading Markets in:
We Maintain Active Markets in U. S. FUNDS for
Autocar
BULOLO GOLD DREDGING
Bendix Home Appl.
Maguire Industries
8ecurlty
York
Dealers
115 BROADWAY
HA 2-2772
PL, N.Y. 5
40 Exchange
BArclay
Telephone
Delaware
Tool, Units
;
;1:
Elk Horn Coal, Com. & Pfd.
Stock
Baltimore Stock Exchange
120 Broadway, N. Y. 5
y./"'
Peace Time Organization
Policies
Power Securities
interrelations, con¬
ditions
that
31 Nassau Street
NY
•
•
:
•
•
ti
c
at
j
cies
Mfg.
Hotel
St.
George
1950
4-5s,
Athletic
N.. Y.
1st
2-5s,
6s,
The
to
If
increases.
illowed
!■
'
'
■
to finance the
1
-1
.
would
f
Marion Steam Shovel, Pfd.
,<
United Piece Dye Works
;
war
rates would
increase the apparent cost
and still more borrowing
"urther
Common & Preferred
of
war
would
tive
ana
be
interest
necessary.
N,
'Y. Security Dealers Assn.*
37 Wall St., N. Y. 5
Bell
f
oenditure
Hanover 2-4«5Q
Teletypes—NY
1-1126
&
A cumula¬
spiral of inflation would be
thus set in motion.
Members
prices,
Rising
increase.
and
wages
borrowing
for
war
Since the exis determined
by military necessities rather than
1127
by economic considerations, higher
(Continued
on
page
898)
don
floor.
A
on
Utility
Mr.
■
...
..
K
M.
member
a
Bratter
the
Banking and
tee,
its post-war
Woods
program
to
Treasury.
An
t
Bretton
Woods.
As
Congressional
Dewey's position
1-609
1
1-1140
Exchange
NEW YORK 5
HAnover 2-9470
Mri
clarified
was
report on request
St., New York 4, N. Y
HAnover 2-0600
Tele. NY
1-210
know
we
are.
-
Where is
feel,
we may
Indiana Limestone 6s; 1952;
,
*
-
v.
:.t
r
.7
jyexr J
Membtanda
on
.
T
''
,.
request '
F. h. Holler & Co., inc.
Ill
Broadway, New York 6, N. Y.
BArclay 7-0570
NY 1-1026
■i
we
want
not
are
to
vote
open.
for
Coupons Missing
■/'0R
//*
3
Mutilated! ^
that, but I
The gentleman may warn
we will lose it, but even
though
we
lose it, will the gen¬
C.E deWillers&Co.
Members New York
Security Dealers Assn.
it?
Dewey: Yes, sir.
.*.
(Continued on page 888)
Mr.
.
Henry Holt & Co.
v.c,./ -5%
-
due
120 Broadway, N. Y. 5, N. Y.
REctor 2-7634
tleman oppose
'
*
1969
$1.60 Preferred
-
Inquiries Invited
i;
in ail low
Boston & Maine Railroad
.-•'.v.
A, B, C, & D Preferreds
•.
Diamond Alkali Co.
t
Teletype NY 1-2361
I
Buffalo, Niagara & Eastern
Coca-Cola Bottling
WITH
that
us
"v.
ON BONDS
isolationists?
want to vote for it with my eyes
r
WE MAKE Bn)S
know, we
put up, but in spite of that
Panama"'
American Furniture
Christy Clay Products
Great American Industries
what
we
I
.
-
_'
..
*.
priced
•
•
; £
'«
'
•
unlisted stocks
Wm. J. Mericka (x Co.
INCORPORATED
Troster,Currie & Summers
Members New York Stock Exchange
The Cross Company
ap-
going to lose all the money
fact,
in
reported
Record,
have. I cannot
are
/
outlook of¬
Simons, Linbuin & Co.
Teleytpe NY
/ :
idea
before
we may,
r
page
the
not
bargaining sense?
,'
Mr. Gifford: The point is that
equally
682, as had bOen
foreshadowed by his statements at
the
those, aspirations
/
Aug. 17,
<.-!
•
our
v
skeptical
speech
was
delivered
by ConJ
greSsman Charles S. Dewey* (R.,'
111.), printed in the "Chronicle"
of
Conference?
we
as
ations,
-Bretton
designed
as
*
,
selfish and national aspir¬
own
Commit¬
the
[-i
1
ments/all of whom have their
of
make all the world prosperous "at
the expense of the United States
Members
25 Broad
York Curb
of going into
partnership with other govern¬
f
Senate
Currency
characterized
1/
Laclede
Banking and Cur-j
fellow Republican.
Dewey: No; I could
prove •;
Cap¬
(R., Kan.),
per
Herbert
without compli¬
BONDS
G.A.Saxton&Co., Inc.
17. PINE ST., N. V. 5 WHitehall 4-4976 I
New
ST.,;/:/
Teletype NY
into
sUch
-
Arthur
reconversion problems
Detailed
STOCKS &
WALL
House
approval—speaking
for' myself—of a fund which
may increase
the/ public debt;
•
Senator
a
^
<' enter
ativ e
g
on
Woods
:ton
;
;*
statement
fers tremendous possibilities.
Industrial
StilE
Curb Exchange
York
New
Frank C.Masterson & Co.
r /?
.
cated
on
Massachu-?
of
gentle-virian
think that he is going to
approve the action of the Bret-
•yy/y/r'j
from
clothing)
(Men's
An industry
Public
in
Mr. Gifford: Does the
distinctly
n e
FASHION PARK, Inc.
Railroad
j
Broadmoor 4s, '56
*Dealt
Members
of -the
Thus:
e
the
Gifford
member
and
-ency •'
-
Trading Markets in
L.
a
Committee
have
some
speech
to
for money
would raise in¬
terest rates. The cost of
1
likely
are
/
an
corre¬
demand
the
'ourse,
Issues
wages
there
members. / of
the I Congress,'
in¬
Were monetary affairs
to
take
their
normal
"ise, too.
Jardine Mining Co.
All
rise,
orices
^
Common &. Warrants
Publications
no
ever^
already
expressions of
sponding increase in the supply
*)f peactime goods, prices rise.
If
Engineering
American Gas & Power
is
there
Charles
setts,/
opinion / from
available for expenditure
capital
until after the
^
expanded, the amount of apparent
Teletype NY 1-1843
Macfadden
which
process
a
(Va.)
Debentures
Preferreds
&
Reiter-Foster Oil
/
financial conference managed
election. How-,
been
deposits, the principal cir¬
culating medium of the country.
When the circulating medium is
Telephone: WHitehall 3-1223
Aetna Standard
Howe
creases
Street, New York 5
Bell
A.
James
is
banks,
;
& 5 V2 %
Common
Wagrier has indicated the. Administration's desire to postpone
Congressiona ^
consideration
by questions from % Congressman
■>eing financed by taxes, savings and inflation.
The
inflationary portion is in¬
cluded within the sales of bonds
1946
*5%
As everyone knpwis, Congress must still act before
resources.
o n
war
Central Stales Elec.
country ds committed to the course laid out at the conference.
.
H. G. BRUMS & CO.
20 Pine
this
effects.
Club
1955,
I
agreement on plans to create machinery for the extension
influences and
Ice & Cold Storage
Roch.
their
Senator
collateral
of
Teletype NY 1-1919
pi financial aid to countries engaged in rebuilding or in* developing
one
considerati
Bell System
.
,
WHitehall 4-8120
Broadway
•.
The Bretton Woods tnonetary and
to achieve
omits
which
Stock
Capital
Members New York Stock Exchange
64
likely to
than
Edward A. Purcell & Co.
<♦>
i
is
view
broad
Bay way T erminal
Members New York Curb Exchange
analyses, memoran¬
da, studies, surveys and statistical
reports on a number of interesting
situations
in
industrial,
public
utility, rail and -traction issues.
Copies may be had from the firm
upon request.
'
By HERBERT M. BRATTER
A
actions.
j
1-1548
o ns
produce satis¬
factory ../poli¬
Medical
and
Plain
6s
have prepared
Little is pure
priate
appro
more
Fellowes
Co.
&
Contest Brewing In Congress
On Bretton Woods Agreements
make
arrive
and
New York 5
8ystem Teletype
BeU
infinite variety of colors.'
an
discriminating
COrtlandt 7-4070
Telephone
Kneeland
N.E. Public Service
Interesting Situations
>
It is by determination of the proper relativities
and
.
we
distin
j
York Curb Exchange
New
with
Am. Cable & Radio Wts.
Southwest Gas Producing
Straus Securities Company, 135'
South La Salle Street, Chicago,
Will Provide A High Degree
characteristics
Vanderhoef & Robinson
Members
reflects
jet black.
or
of many
Curb Exchange
Y,
The Financial Chronicle)
to
branch offices
our
Southwest Nati Gas
65
Necessary For A Time After The War.
The world
white
6V2S, '55
7s,
'52
7s,
'57
N.
Direct wires to
2-7815
Hickey, Doyle & Co.
Affairs"—He Discusses Interest Rates And Sees Present
International
on
(Special
In Most Economic And Business
Of Decentralization
Traded
REctor
NY 1-1557
7
New Orleans, La.-Birmingham, Ala.
CHICAGO, ILL.—James P. Gal¬
lagher has become associated with
Dempsey-Detmer & Co., 135 South
La Salle Street, members of the
Chicago
Stock
Exchange.
Mr.
Gallagher was previously in the
trading department of Link, Gor¬
man & Co., Inc., and prior thereto
tion," And Concludes That "The Ultimately Desirable
1-1227
Quoted
—
St., New York 4, N. Y.
HAnover 2-0700
Salfaglser Willi if
Bemjisey-Belmer & Oo.
was
Sold
Members New York Stock Exchange
25 Broad
Exchange
termining Interest Rates, Prices, Wages And Produc¬
WOrth 2-4230
Teletype N. Y.
Tel.
Of Inflationary Finance Appears Economically As
Well As Politically Unavoidable" — Doubts Whether
Measures Taken Will "Be A Satisfactory Means Of De¬
Members
Stock
BROADWAY, NEW YORK
1-672
gree
Mitcliclk Company
Bell
120
'
—
Steiner, Rouse & Co.
York Curb Exchange
New
Easy Money
By JAMES A. HOWE
York
New
Taken Against Inflation, Writer Holds That "A De¬
ures
LaFrance Indust.
&
NY
Teletype
request
on
a
Members
■
After Analyzing The Financing Of The War And Meas¬
Mayflower Hotel, Com. /
'56
/
Bought
TVfc Donnell Sz Cc
And Collateral Theories
Rayon, A & B
4's,
i
Some Limitations Of
Carborundum, Com.
Cons. Mach.
i.///'v.:.
7-0100
Bought & Sold
;
NEW YORK 6, N. Y.
1-423
BELL TELETYPE NY
Analysis
\
WARRANTS
' '.[• ■ • ■ ' ■' ;/ •■//:'// /:, O
Members N. Y. Stock Exchange and Other Principal Exchanges
Ass'n
Mallory & Co. Inc.
*
r ::"~V
:
,,
Ill Goodbody <Sl Co. y/f|i
Established 1920
New
/. t
STEEP ROCK IRON MINES Ltd.
king & king
P. R.
/
'
Cable & Radio
N0RANDA MINES
Alabama Mills
Members
American
74
N.
Y.
Teletype NY
Wires
Detroit
-
Union
Security Dealers Ass'n
Trinity Place, N. Y. 6
Private
Members
to
Pittsburgh
-
-
Cleveland
St.
Louis /.
Commerce
Stock
Bldg.,
Exchange
Cleveland
Telephone MAin 8500 /
HA 2-2400
1-376-377 /
Buffalo
Cleveland
14
•
/
MORRIS STEIN & CO.
*
29 Broadway, New York 6
'
,
;*
Established
'
1
WHitehall 4-3640
Direct Private Wire to Cleveland
50 Broad
1924
Street,'New York 4, N. Y.
Telephone HAnover 2-4341
;
Volume
THE COMMERCIAL & FINANCIAL
Number 4312
160
The
Punta
COMMERCIAL
FINANCIAL
Alegre Sugar
Reg.
U.
S.
CHRONICLEj
We
Sugar
William B. Dana Company
J
Publishers
.V
25
Vicana
.
Herbert D. Seibert,
v
Editor and Publisher
Cespedes Sugar
;
;
\
Public
.
^ «
Sugar Est.
Published twice
i
Cuba Railroad
*
-every
.
STRAUSS BROS.
32
New
York
Security
Broadway
Dealers
..
Ass'n
HEW YORK 4 E
CHICAGO 4
Harrison 2075
.
f
Teletype CO 128
Estate
Reentered
ruary
Securities Department
York,
/
B.
Dana- Company
second-class matter Feb-*
'
Members
40 Wall
Hew
York
St., N.Y. 5 I
Bell
Stock
wages,
Exchange
America,
$29.50 per
of
fact, currently high
including overtime, are a
direct operational cost, and in the
instance of most
rate of exchange, remittances
lb/
foreign subscriptions and advertisements
emphasizes the oft repeated opposition of this
paper to the /participation of judges who have a personal
stake in the result in any proceedings.
Again, we say that a just decision is not likely to ema¬
nate from those having adverse interests.
!"v«
Some such thought must have been in the minds of
.
in
ever,
the
overtime
they
would
have
an
final
analysis,
/
'*
time is already on
Work
Hours
i
;■
While
Board of Governors of the National Association of Secur-
at
ities Dealers?
/the
f
the
cost of labor.
high
has
that
philosophy is
or
is not
a
rule capable of enforce¬
Convincing proof of the embarrassment this has caused
the
suggestion of counsel for the Securities Dealers Commit¬
they themselves may have had a hand in establish¬
ing the 5% spread principle. 3
: • ?
Had the law authorized a hearing and determination
before an officer unconnected with the controversy, the SEC
would have been saved embarrassment, and the charge of
tee that
possible participation in the conferences which gave rise to
the 5% yardstick would have had no place in the pro¬
ceedings.
reduced
been
One such
deplorable
case came
Curb
Exchange.
The
practice of reading to the board, at the trial,
(Continued on page 885)
!•'
Teletype NY 1-1203
•
Appliances
.'.
' -"
A
Botany Worsted
Crowell Collier
National Airlines
anything in excess of that. Dur¬
ing the last great boom industry
(Continued on page 888)
As a
Punta Alegre Sugar
to
Bought
—
Sold
J.FvReilly&Co.
mand
for
munitions
more
will
while
there.
Bell
will
in¬
be
creasing / une m p 1 oyment
.
in some areas,
and
se¬
more
rious*" 1 abo
r
factories are not
in • making war
goods, and if the regional WPB
sion
v e r
wiIT
Bartgis Bros.
Gisholt Machine Co.
Haloid Corp.
Laclede-Christy Clay Pr.
War : Produc¬
gin as soon as signs of German
disintegration became apparent.
tion Board is¬
The progress
"Todaythe
be slow,
last
series
a
overcome
of
of reconversion will
and the difficulties to be
will be numerous.
the
on
HtRiaMlo.m
170 Broadway
Bell
use
of aluminum
SECURITIES
DUNNE & CO.
Members New York Security Dealers Asm
Broad
25
get, and the
parts will be hard to
(Continued on page 901)
experimental models of post-war
Public National Bank
panama coca-cola
/
^
.
Dividends paid 1944 to date
.
Dividends 1943
-
$4.59
1942
-
3.65
"
.
C'rcular
■*
■
f
:•
••
.
4
■
on
—
& Trust Co.*
$2.25
*
*
-
74
"
v
on
request
request
v
"
Second quarter analysis
available
,
:
.
C. E. Unterberg &
Hon rfise § Trqster
^
St., New York 4, N. Y.
Tel. WHitehall 3-0272
component may
magnesium. The second or¬
authorized industry to make prevent production of the com-
der
COrttandt 7-6190
System Teletype NY 1-84
SUGAR
lack of only one
and
Mfg. Co.
The
supplies of many essential mate¬
four
orders
Leonard P. Ayres
rials will be small, and that will
designed
t o
enable industry to begin reconver¬ be particularly true in the case of
sion for the production of civilian steel, which nearly all manufac¬
turers of civilian goods will need
goods. The first of these was is¬
Component
sued a month ago, and lifted re¬ as a first requisite.
strictions
Miller
Segal Lock & Hdw. Pfd.
inevitable that it should be¬
was
"
of
1-2489
begun, as it
"Reconversion has
re¬
sourcefulness.
the
Teletype. NY
operations will not interfere with
the production of munitions.
resolu¬
and
tion
System
authorities believe that their new
demand
from; business
much
Assn.
Federal Screw Works
needed for the production of
peace-time goods. Today's order
permits manufacturers to produce
limited amounts of civilian goods,
provided their
I fully / engaged
shortages
in
0The r s.-Re-
Dealers
TRADING MARKETS
Q*
—■—
—:
*—~
products. The third order permit¬
ted industry to buy machine tools
^
Security
Broadway, New York, N» Y.
suddenly and greatly curtailed.
be
York
REctor 2-5288
JJntiL that time the demand will Increase rather than diminish. Mean¬
to our attention re¬
He said:
;
'
Ayres Cites Problems 01 Industiy
same
cently.
It involved a damage suit brought by John W.
Jones, former member of Avery & Co.
Here Judge,
Botein of the New York Supreme Court criticized the -
Broadway
Bendix Home
■
paid for
;•
,
principle applies in trials before the NASD
and the Exchange Committees.
Here competitors constitute
the board of judges, their motives are frequently questioned,
\ and the results are sometimes unfair and even disastrous to
jthe dealers involved.
■/' //■///'; ~:V*"■
The
CO.*
Members
sued
the trial Commissioners is found in their failure to answer
Information
Security Dealers Assn.
HAnover 2-8970
Raised
overtime
with
hours
40
lasts, manufac¬
war
39
New
Nevertheless, the controversy of whether
ment, is to be decided by the SEC.
QUOTED
New York 6, N. Y.
Ill
'
'
Statistical
Members New York
During World War I industry
averaging a 50-hour week.
During World War II the normal
cannot complain too much
turers
c'ftn
!
For example, can one reasonably contend that the ^
V Securities and Exchange Commission has no stake in the
outcome of the "5% spread philosophy" fostered by the |
-
L J. GOLDWATER &
out.
way
Be
Involved In Reconversion
disinterested in the final outcome,
SOLD
-
was
000.
Overtime Out
;
the
May
existing Congressional Committee headed by Representative
Howard W. Smith of Virginia, which is urging court curbs
upon United States agencies.!//'/>••••;
The prospective legislative program of this Committee
;
Brig. Gen. Leonard P. Ayres, Vice President of the Cleveland
would require the President to name hearing officers to
Trust Co.,,i)i the monthly "Business Bulletin" under date of Aug. 15,
settle disputes between individuals and Federal agencies, says:/.:
■:
these officers to be'independent of the agencies involved in
\"On some unpredictable day in the weeks that lie ahead the de¬
;tbe litigation instead of subservient to the agency heads/*; •
In the administration of justice a bad odor exists as the
result of the many faceted functions of administrative bodies,
making them at one and the same time detectives, prosecu¬
tors and judges.
Being human, the interest in each office is
to create a records
Decisions are frequently the product of
this ifnpulse with judicial determinations veering away from
impartiality because the particular bench, or panel, is not
Compute
How¬
it is
really
only
$77,500,000,-
Babson
W.
Roger
■
'
BOUGHT
these
work-week
Our thesis
(
4-6551
CERTIFICATES
ivVV/'^v'
contracts the
the taxpayer who foots
charges.
When
the big war contracts are
sented
pay¬
a thing of the past, manufacturers
ments
for
overtime will not have their present high
work.
If the volume of business, while selling
will be much higher.
above workers expenses
Their first step, however, will be
had not<ben¬
to cut out overtime. In fact, over¬
efited
from
;
By Competitors; |I |
war
Government pays the bill.
earned
Trial
NEW YORK
TITLE COMPANY
wages,
o
proximately
131/2%, repre¬
must be made in New York funds.;
Teletype NY 1-2033
t
$89,500,000,000.
Of this,
some $12,000,000,000, or ap-
NOTE—On account of the fluctuations
in the
WALL STREET,
matter
enterprises,
amounted
$20yr:
Monthly Earnings Record—Mth.. ;$20 yr:
f
lot in the West.
in agricultural »v
V:
.
Other Publications
Whitehall 4-6330
a
and
bid.
Telephone:-WHitehall
PARK, MASS.—For the year 1943 total industrial
and salaries, .without including incomes of those employed
Bank and Quotation Record-—Mth.
lewburger, Loeb & Co.
week
BAJ3SON
;
:
for quotes
99
Says Wage Structure Based On Supply And Demand
Factor, Rather Than Political Considerations, Is In Order
Spain,
Mexico
anc
Cuba,
year;
Great Britain.
Continental Europe (except Spain),"Asia
Australia and Africa, $31.00 per year.
CERTIFICATES
fun last
Obsolete Securities Dept.
-
//*//v;/: Teletype NY 1-1
f lower Wage Income Ahead
25, 1942, at the post office at-New
N. Y., under the Act of March
Central
We're told there's
We're ready to
;
lot of
:
; Subscriptions in United "Statesam'
Possessions, $26.00 per year; in Dominion
of Canada, $27.50 per year; South an.
TITLE COMP/tNY
us
William
a
rv
3, 1879.
Specializes in
Call
by
as
Co.
&
had
sure
gatherin' up the junk stocks
bonds that nobody else wanted.
Members New York Stock Exchange
• Other
Offices:
135 S. La Salle St.;
Chicago 3, 111. {Telephone:-State 0613)|
1 Drapers' Gardens, London, E. C., Eng¬
land,, c/o Edwards & Smith.'
vr'-
Copyright 1944
Real
Our
Monday/!1
Trask
Telephone HAnover 2-4300
.«
(complete statistical issue—market quo-\
tation '/ records,. corporation,
banking,
clearings, state and city news, etc.)
Board of Trade Bldg.
DIgby 4-8640
Teletype NY 1-832. 834
week
Thursday.
and every
.
We
25 Broad Street, New York
,
(general news and advertising issue)
:•
Members
a
WAS GREAT
PREFERRED STOCKS
.
Sp.>encer
Thursday, August 31, 1944
.
GATHERIN'
Utility and Industrial
;
William Dana Seibert, President
v
AMD COMPANY
^
William D. Riggs, Business Manager
Antiila
llCHTflMElP
"
offerings of
High Grade
.
Spruce Street, New York 8./:
BEekman 3-3341
Sugar
interested in
are
^
,v "
t
Warner
883
v
and
Patent Office
CHRONICLE
Established. 1914
-
*
Trinity Place, New York 6, N,. Y.
Telephone: BOwling Green 9-7400
*
Teletype: NY 1-375
Members New York Security
61
Co,
Dealers Assn.
Broadway, New York 6, N. Y
9-3565
Telephone BOwling Green
Teletype NY 1-1666
& FINANCIAL CHRONICLE
THE COMMERCIAL
884
Thursday, August 31, 1944
PHILADELPHIA
BOSTON, MASS.
So.
Salle
La
So.
650
St.
CG 362
Randolph 3002
With
.
Spring
:||}||; (Pa.) V:c||-|p
Power Com.
f
Crowell Collier P. Com.
*
Com. & Pfd.
Pfd.*
Interstate Bak.; Com. & Pfd.
Howard Stores,
H. & B. Amer; Machine,
Liberty Aircraft
Magazine Repeating Razor
Merchants Distilling*
V
Punta
*
/
£
Alegre Sugar
Car
v
~
\
"B"
;
-
<
;
_.
terest
to
of
American business
as
a
whole, not only because of its in¬
Textile
Mortgage Co.
Candy
Lawyers
Marmon
one
•
Corporation
Great American Industries'*
trinsic
but also be¬
cause it may set a pattern for the
nation's entire post-war foreign
trade policy.
v
'
Herrington
McFadden
act
importance
Pub.
A
Poliak Manufacturing
Purolater*
National
Problem
from
principal
Philadelphia Stock Exchange*
Members New York Stock Exchange
1529 Walnut
SQUARE
MASS.
Philadelphia 2, Pa.
Phila. RIT 4488
Teletype BS 69
PH 265
—
N. Y. WH 3-7253
'.%*.v
^
■
••
Southern Advance Bag
i
County Coal A
f&
Bayway Terminal
ff
continuing interest in:
a
;
National Terminals Corp.
?
w
i
Paper Co.
Common 'Stock
;
.
Chicago Aurora & Elgin
BOENNING & CO.
1606 Walnut
COMSTOCK & Co.
CHICAGO
The sixteen
States1 contain
Private
4
~
231 So. La Salle St.
St., Philadelphia 3
Pennypacker 8200
•«,->
COrtlandt
PH 30
}
Phone to N.
Y.
C.
7-1202
Dearborn 1501
than one-third of the coun¬
more
SAN
population.
Most of these
are predominantly agricul¬
tural, and cotton is their main
cash
crop.
Cotton-growing has
largely determined the growth
and development of the Southern
States,
the .opening lof " lands,
movements
of population,^ loca.-
try's
States
tions
of
cities,
and
towns
CURRENT INFORMATION
Bought
'•-,^>7'-
and
Sold
-—
-y>
—
Quoted
Dr. Pepper
Southern Union Gas Common
So'western Pub. Serv. Com. & Pfd,
great strides in diversification and
industrialization
since
the
last
All Texas Utility Preferred Stocks
Dallas
Check
Ry. & Terminal 6% 1951
us
on
the prosperity of large sec¬
depends to
on
tion of this
one
Southwestern Securities
on
coast
securities
If ;:
..Send for our current report on
;
Security-First National Bank
f
-fV'frof Los Angeles
-
H. R. Baker & Co.
consider¬
posi¬
a
RAUSCHER, PIERCE & CO.
the economic
able extent
:l pacihc
fir
transportation. Although
the South, and particularly the
South Atlantic States, has made
MARKETS
and
.always .available
„
^ViBepublie* Insilrabebi'c C'-Xv
^
routes of
tions still
FRANCISCO
DALLAS
>
,
war,
St.,
Bell Teletype
/
Old Ben Coal (Com.)
crops.
cotton
■
v,
BUCKLEY BROTHERS
fifth of the nation's estimated cash
income
recogntiion
of
the principles underlying foreign
trade; and the way in which it is
solved will be of exceptional in¬
Eastern
Loft
conditions
financial
the United States and abroad.
marily
/
Brockway Motor*
Buda Co.: ' .*'V
Consolidated
and
provisions of the stabili¬
exempting cotton and
other
farm
products from full
price control are not such as to
encourage the hope that the coun¬
try is prepared to face the issue
in a realistic way," The Survey
continues.
"The problem is pri¬
industrials
Axton-Fisber
1990
Franklin
present war emergency will confront the
one of the most important and perplexing
economic questions that the nation will have to face—the necessity
of finding a solution to the cotton problem, states the Guaranty Trust
Company of New York in discussing the cotton dilemma and its im¬
portance to American business in the current issue of The Guaranty
Survey, its monthly review of *
"The
Title Guar. & Trust
'
passing of the
nation once more with
zation
^
9,
^
Memo on request
...
-
I
The
m
Riley Stoker
Scovill Mfg.*
Auto
OFFICE
.
Fennsylvanis
CHICACO
Guaranty Trust Co. Sees Solution Of Cotton Problem In
Tariff Revision And Ending Of Price Support Policy.
business
Triumph Explosives
Wickwire Spencer
HUB
The Cotton Dilemma And Its
Importance To American Business
Electrolux*
1
J
r
We have
Douglas Shoe Com. & Pfd.*
Nu-Ename! *
POST
10
BOSTON
Cons. Cement "A"
f
Ctfs,. 19^4-2014
LERNER & CO.
Tel.
Pfds.J
f
Members
Bird & Son
Moxie
Arrears
Appl.
Me., Prior & Stpd
:
in:
•
Circular Available—Send for Copies
SECONDARY MARKET DISTRIBUTION
Conn. Light &
Tax free in
ffff' Stocks 2%-2%;
Glass, Com. & Pfd.
Auto Car;
Boston &
Company
v
Trinity 3908
Div.
Bendix Home
Trading Market
H. H. Robertson
UNDERWRITERS
American Hardware
Maintain
Giant Portland Cement
St.
WHOLESALE DISTRIBUTORS
Amer. Win.
We
Industry
an
Bright Future
a
LOS ANGELES 14
CHICAGO 3
135
Low-Priced Stock in
A
CARTER H. CORBREY & CO.
commodity.
DALLAS, TEXAS
t
Russ
650 So.
Bldg.
San Francisco
^
-
S.
-
Spring St.
Los Angeles ".
..
•'•
196
F.
L.
A.
42
.
"The importance of cotton as an
Remington Arms
element in the
Ta'on
Tank
Oil
Tokheim
United, Cigar
United
is well known. Cotton and cotton¬
Pump
Whelan
seed
account for
more
than
one-
&
on
page
887)
Special Articles
In NSTA Supplement
Airlines
Mid-Continent Airlines
(Continued from first page)'
>
Airlines
How
Airlines
Gas
&
Power
Utilities
Cons.
Elec.
&
Gas Pfd.
Gas
&
Electric
Power
&
By
»
National
Com.
Lt.
$2
C. Dick
By
;
,
,
Co., New York
Natural
Southwest
Pub.
vr-:
f ;
STREET
.
Members
-
-
Securities
&
Research
Corp.
j5t; Louis Stock Exchange
(Page 916)
DR.
J. P. Masterson is
Export Prospects
MELCHOIR
PALYI
(Page 917)
s
:
-
Representative In Congress From Illinois
Serv.
'V: V'
Lab. "A"*
Emerson
Radio
(Page 918)
Instrument*
3;
.
Magnavox Corp.*
Majestic Radio & Tel.*
has
been
Request
Chicago Tractions
son
Corporate Trading Depart¬
Buckley Brothers.
in the
(Page 919)
Coming Boom In The Home Washing Machine
Industry Already Discounted? (The Market Leader <
Is An Over-the-Counter Issue)
By H. M. GARTLEY
J.:/ (Page 920)
^the Post-War Trade Outlook (A Review And Prospect)
By EUGENE VAN CLEEF
State
University
California Bank Adds
Situations of Interest
F.i H.
(SDecial
G.
thur
to
Kane
with
ciated
South
Kane
was
utors.
The Financial
ANGELES,
has
Chronicle)
*
o
CALIF.—Ar¬
become, asso¬
the California' Bank;
Spring Street.
Mr.
formerly Pacific Coast
for
Century
PIIILIPP II. LOHMAN,
Ph.D.
(Page 923)
Security Trading And Security Traders Of Bygone Days
By A.
S. MORTON
of the bond department of
Wm. Cavalier & Co.; in the past
he was with E. H. Rollins & Sons,
(Page 925)
Brown
Harriman
National
York.
City
&
Co.
Company
and
of
the
New
r::
Products
Clay
which
and
the
In¬
firm
Copies of these in¬
levels.,
circulars
request from
teresting
upon
be had
F. II. Koller
may
& Co.
Distrib¬
ager
memoranda on Great
Industries, Laclede
believes appear attractive at cur¬
rent
;
Fashion; Park Attractive
Prior thereto he Was with
Dean Witter & Co. and was. man¬
Monetary Fund
a
Limestone
diana
Manager
i
prepared
American
Christy
625
(Page 921)
Bretton Woods In Review: II—The International
By
Master-
Koller & Co., Inc., .111
Broadway, New, York City, have
LOS
Ohio
Mr.
of
ment
,
The
Street.
was
Bell & Co.; Prior-thereto she was
City College, New York
i
Is The
Sixth
West
formerly manager of the
appointed trader.. Miss. trading department for the Cali¬
fornia Bank."
f
^
was formerly with W. H.
'
P. R. Mallory
Stromberg Carlson
Submarine Signal
on
.
v.i
that.Hilda H, Williams,,
,•
Williams
V;,*5y A. M. SAKOLSKI
••
i
Detrola
Hilda H.Williams:,,:
V
-
announces
Securities As An Aid To Small Business
ANGELES, CALIF.—John
Masterson has become asso¬
ciated with Buckley Brothers, 530
Pi,
-■
Easing Collateral Loan Restrictions On Inactive
Du Mont
(Special to The Financial Chronicle)
<LOS
.
Circular
509 OLIVE
.
By HON. FRED E. BUSBEY
Gas
•
*
;
investment securities •
(i. :
Springbrook Water Pfd.
Southwest
International
•■-V
"
(Page 915)
S
"Wake Up America!"
A
Queensboro Gas & Elec. Pfd.
General
Co.,'1420 Walnut Street,
Pfd.
Service
Peoples Lt. & Pwr.
Puget Sound Pr. & Lt.
Scranton
&
L. SCUDDER MOTT
Post-War
Pfd.*
Ltg. Pfd.
6% &7% Pfd.
New Eng. Pub. Serv.
Water
PHILADELPHIA; tP*A.:-L Lewis
-
Com.
Util.
& Suffolk
Stix & Go.
'
f'T?
Investment Trusts In The Post-War Securities Field
Pfd.
Illinois Power Div. Arr. and
Nassau
-
t v if: i V £0-: f' i
a;,
..
Derby
Iowa Southern
Trade For L C, Dick
t.
Wrnts.
&
Service
Birmingham Gas
v
Conn. Light & Power Com.
.
/-< •
1
By W. W. TOWNSEND
:
American
r
Cheap Is Cheap Money?
Townsend-Skinner
Amer.
ST. LOUIS
f
More
,
Northeast
Y.
(Continued
r;"'.• r\
Export Airlines
Chicago & Southern Airlines
N.
«
Hilda Williams To
American
Mass.
»
Gold
AIR LINES
National
San Antonio
to have repercussions far beyond
Gay
Consolidated
Inland
Houston
the
cotton
cannot fail
"Developments in
situation, moreover,
Stove
Wilcox
Yuba
economy
"A" & "B"
Drill
United
&
national
A
detailed
Park,
Inc.,
r
is
study of Fashion
contained in.' a
circular preoared by Si¬
& Co., 25 Broad
St., New York.
Copies of this
interesting study may be had from
special
mons,
tho
Linburn
firm
linnn
rpniiPst..
Volume
885
CHRONICLE
THE COMMERCIAL & FINANCIAL
Number 4312
160
AMERICAN MADE
MARKETS
Piper Aircraft*
;
;
<
IN
CANADIAN
j
Preferred
and
Common
\
\SECURITiESJ
American Bantam Car
Circular■
It's
Preferred
and
Common
1
request
on
.
-
International Utilities
that closes the trade
Trinity Place, New York 6, N. Y.
74
NY 1-375
Teletype:
Telephone: BOwling Green 9-7400
.v;
^
v:' P- •/
r
W.2-* *:
Y'.v .'jYti
»•',
/
.*
.( J
i
""
.
dealers
stance,
ANNOUNCING THE FORMATION OF *
,()
(
<-*>-< 1
.
'Y. •' * *
v**:
-
„
'
1 fl-•
**
jf.
•:
5COMSTOCld&
•',*
-
'/
v;•''' -•
'4 ■
•-
V..
it's just as important'to
CO.
around in
;
be able to know where you
Bank of Montreal
-
CHICAGO 4,
you
need
as
it is to know where they
Canadian Bank of Commerce
have room to
Dominion Bank
Imperial Bank
V
making that trade. That's what we mean
when we say
ILL.
us
231 SO. LA SALLE ST.
"It's cooperation that closes the
completion of
demonstrate how
a
trade."
Royal Bank of Canada
deal becomes a problem, let
cooperation between dealers can prove
HART SMITH & CO.
'
mutually profitable^
Dearborn 1501
■
WILLIAM
52
St., N. Y. 5
Bell
Members '
New York'Stock Exchange
.
of
,
offices to
our
a.
,;
New
'•
V-
V
'f.v '
Pressprich 8C Co.
>-V
.
'YY ''.1-:'.' ■ Y — .'
201
68 William Street
Exchange
Exchange ;;r
"
m
■*"/
'
UTILITY,
AND
5
RAILROAD,
V2
s,
1951
v
v
,
1Q7J2
INDUSTRIAL BONDS
INVESTMENT
STOCKS
'
-
:
Tyler Building (N. Y.)
^
6s,
1953 \
.
V
,
V
Teletype N. Y. 1-2123
: i
inc.
'.
•
National Public Service
cR
PUBLIC
TEL. HANOVER 2-9612
;
1948
4St
,
YYYYYY'^ YYY^YrYY
George R. Cooley & Co.
MUNICIPAL,
GOVERNMENT,
.
Eastern Minnesota Power
WHitehall 4-3990
Quotations Upon Request
1946
6$,
East Coast Public Service
w,.;w
SUGAR SECURITIES
1975
5s,
BOSTON 10
Members New York Stock
.f Toronto
Montreal
Community Water Service
•'
.
2-0980
1-395
American Water Wks. & Elec.
Devonshire Street
NEW. YORK S
ST., NEW YORK
H"
(unchanged)
Telephone
York Co/fee & Sugar
120 WALL
52 William Street
R. W.
co.
farr &
the removal
announce
HAnover
Teletype NY
New York
We
v
Provincial Bank of Canada
When the
DANIEL F. COMSTOCK
Sun Life Assurance Co.
.
For in¬
produces profitable results for both.
be sold.; And it's equally important to
can
OVER THE COUNTER SECURITIES
EDWARD P. RENIER
Steep Rock Iron Mines. Ltd.
1
we^ Provec^ ^at cooperation between
buy the securities
can
,
turn
ERLING J. HANSEN
V' t. **.-
*V
Co.
Noranda Mines
;
:
Bank of Nova Scotia
/
'•1 ! •'
Y
*
' 1V-
VY
i
^ "DXPJZRIENCE has
-
Minnesota & Ontario Paper
*
,;^
'•/;
Co.
Company
Fanny Farmer Candy
.'!V;
Established 1914
,
Brown
Electrolux
COOPERATION
HonlteSIbgsim
...
Abitibi Power & Paper
Frederic H. Hatch & Co!
Incorporated
63
Bell
Trial By
.V
v
j
testimony heard by the investigating committee,
and thereafter resting the case, so to speak, upon such
Post-War Outlook For
the
J
his
Higher Labor Costs Believed Not Likely To
Favorably Situated Companies From Showing
developed
of
the trial of a
other issues.
on
in baseball.
'
Y YY' I
Y
-
ment
sharply, but some of the wartime
arbiters, such
Judge Landis
,
by an impartial and distinterjudges is fundamental in our institutions
should be preserved at all costs.
;
Y; The right to trial
ested
-
and
judge
Gude, Winmill & Co.
Members New York Stock
increase is attributable to causes
operative after the war.; It seems probable
moreover that the increase in la-<S>
—
"
bor costs will be partly offset by danger that the wartime increase
+L a4
4
/in»\n/>t+tr tinll
4r\ nnnm ivo rfn
reduced corporation taxes, so that in capacity will tend to encourage
price cutting.
many companies whose principal
The study concludes, however,
customers are producers of con¬
sumers' durable goods, for which that the situation in this respect
is
considerably
different
from
there is a huge deferred demand,
should be able to show generally the situation that prevailed after
satisfactory
post-war
earning^ the World War. Steel prices rose
1 Wall
Exchange
St., New York 5, N. Y.
'
iDIgby 4-70(10
Teletype NY 1-f>55
which will not be fully
impartial
recognition of the need for
believe the
We
;
Coupons Missing
outlook of the steel industry
t
judgments was responsible for appointment of
as Mr^Hayes in the motion picture field, and
steel should be excellent
after the war, according to a study of the post-war
just completed by the research depart¬
of E. W. Axe; & Co., Inc.
Labor costs have of course risen
'for several years
be
series of pending actions
which involve this among
TARRYTOWN, N. Y.—The demand for
(
Prevent
Satisfac¬
WITH
Earning Power
tory
destroy
the desire of competitors to
part
Avery & Co. played in the decision of . the Board
Governors of the Curb Exchange, if any, isvyet to
i
:
suspension was predicated."
What
WE BUY
li|IISiI#l|Thei'SteelJndustiy ll^BONDS
in the light of the constitutional provision permitting the accused to cross-examine < *
only those witnesses who were produced, effectually
deprives the plaintiff of the opportunity to cross-examine
the witnesses who furnished the testimony upon which
testimony, when considered
f
Teletype NY 1-891
Competitors
(Continued from page 883)
)■
New York S,
Wall Street
or
n/\
power.
American Maize Products Co.
v\
General Tin Investment
Tokheim Oil Tank &
Pump Co.
Universal Match
This is ofconsiderable sharply during the World War.
whereas during the present war
from an investment
importance
Comstock & Go. Is
Increased
Formed In Chicago
For Merchants DisL
Productionif.
the
ILL.—Organization
Merchants
Distilling Corpora¬
of a new Chicago firm, Comstock
tion
of Terre Haute, Ind., has
& Co., is announced by the part¬
completed arrangements with The
ners, Erling J. Hansen. Edward P.
Renier and Daniel F. Comstock, Southern Comfort Corporation to
and bottletheir iwell•all of whom were formerly execu¬ produce
of
Adams
have been in the
ness
securities
They
in
"Southern Comfort."
than 20 years
in
over-the-counter
and
reorganizations.
specialize
will continue to
servicing
tions
known brand of
investment busi¬
here for more
specializing
dealers and institu¬
throughout the country.
-
Of¬
at 231 So.
fices have been taken
La Salle Street.
100-proof liqueur,
& Co. here. All
•
. ..
J
:
For the past
because
stocks of most steel
today
CHICAGO.
tives
standpoint
eral
the common
companies are
they have remained virtually un¬
changed, f Before the present war
sellipg at lower' levels than tjhere had been little increase in
and sev¬ Capacity for nearly a decade, so
1937 and 1939 highs
are
selling very much lower.
that
the
wartime
increase
Frederic H. Hatch & Co.
may
63 Wall
Incorporated
.'V
'
New York 5, N. Y.
Street
expectation of represent in part merely an ex¬
Bell Teletype NY 1-897
• >
tension
of. the
normal secular
an
excellent
demand for steel
growth
of
the
industry.
The
les«
after the war is mainly the huge
efficient units will bear the brunt has been in districts where there
deferred demand for automobiles,
of whatever reduction is necessary were no steel mills before the war.
farm machinery, domestic house¬
from the present extremely high Some of these units may be aban¬
hold appliances, railroad equip¬
rate of operations, so that the war* doned
because of
their uneco¬
ment, new construction, and other
time increase in capacity should nomic locations.
steel-consuming products the out¬
increase rather than decrease the
The study concludes with an
put of which has been restricted
industry's average operating effi¬
analysis of the post-war invest¬
or completely banned by war reg¬
ciency.
; ,:v;;
:
:" ment prospects of 36 individual
ulations. .It
is true,
the study
The study presents an analysis
points out, that there has been a
steel
companies and selects the
of
the
War
Production
Board's
ex¬
marked increase in steel mill ca¬
The basis for the
,
10
years
this
manufactured
liqueur
only
by
has
been
the
com¬
at its St. Louis plant.
pany
:
r
-
Merchants
Distilling
Corpora¬
its
executive
offices at
has
Midland
under
Building,
the
W. C. Dunn,
Chicago,
III.,
of
Mr.
management
President.
.•
securities
of
those
which appear
program
and concludes
pacity, so that there is some dan¬
that some of the wartime increase to be reasonably priced relative to
ger of high costs owing to the
in capacity may not be a perma¬
possibility that some mills will be
pre-war, war, and probable postforced to operate at much less nent post-war influence because
nhnnt
nnp-third
of the inprpasp war earning nower.
than full capacity.
There is also
pansion
tion
THE COMMERCIAL & FINANCIAL CHRONICLE
886
Thursday, August 31, 1944
Tomorrow's Markets
•* i
L
Walter
Affiliated
Whyte
Says
Fund, Inc.
Prospectus upon request
Bearish
sentiment
eral
Street.
in
now
gen¬
market
But
persists in acting good.
Mar¬
ket
ready to advance again
according to present indica¬
tions.
Lord, Abbett & Co.
INCORPORATED
new york
•
chicago
jersey city
•
;
"
*
-
*
los angei.fs
♦
Prospectus
request from
on
Principal Underwriter
Under
Mutual Funds
*
'
,
'
i
•
»
REPRESENTATIVES, IN THE PRINCIPAL CITIES
Day
THE
OP
STATES
UNITED
piece
good
of sales
Price Recessions
Following Peace
Probably Be Less Severe Than Some Expect
^
literature issued in August will
stand
out
And
like
with
ARE
a
thumb,
sore
dealers
those
who
riod, it will make
will be followed by a
Equipment Shares
pression.
'
Among
the
few
who
sponsors
the current month, National
erable volume of
on
of
Investment
"Post-War
"OPA
Tax
Timing
on
those
subjects,
vital
the memoranda
on
"1.
packed
are
full
of
sales
new
effective in
that
dividends
of
a
Another
they did after previous wars;
"3. Current price declines are,
to some extent, discounting peace.
large volume of accumulated do¬
mestic purchasihg power, suggest
that
the
demand
will
remain
Hence, if
strong."
and
Na¬
tional Stock Series is headed with
the
"football"
These
have
trial Stocks Series carry
kind of sales punch.
*
«
Indus¬
the
same
a
new
folder
ter Metal."
some
on
folder
"selling copy"
contains
no
regarding the
ex¬
selves.
:
/.'.V
!'!
Lord,
Abbett
issue
of
performance
of
Shares.
ness
devotes
the
"Abstracts"
American
the
Busi¬
Commenting
on
the
as
Shares
illustrated
of
over
by
the
American
the
(1)
mar¬
ket; and (2) why steel stocks are
cheap. For an attractive steel in¬
Maintaining,
as
sales potency of a
added:
recent
service
per¬
ents
of
died
are
Lord,
they
years,
in
have
may
bination
funds
from
the
1942
com¬
end
of
through
June, 30, 1944.
Over the longer
period American Business Shares
just about equaled the average
list
compared
vance
of
with
gain
a
with
an
45.7%
for
bination funds.
,
of 58.5%
average -ad¬
all
the
com¬
.
Mutual Fund Literature
paid
number
and
in the past, the
simple presenta¬
indicate how generally men
into
has
en-
Lord, Abbett—Revised port¬
on
American Business
the
and how this insurance
tion
of
dealers,
ONE COURT ST.,
or
BOSTON
Management Associates, Boston, Mass
forces
paying: killed
total
death
:
benefit
pay¬
folder, "How $1,000 Gets the
Investing Potential of $1,700."
.
120
BROADWAY, NEW YORK,
(6)
LOS
ANGELES, 634 S. Spring St., (14)
BOSTON, 10 Post Office Square (9)
CHICAGO, 208 So. La
Salle
St.
(4)
policyholders
the
and
in
others with satisfaction.
fact
is
Statistics
Fundamental
on
Fundamental
portfolio
Stocks.
folder
.
.
.
on
New
a
York
Two
suggested
soliciting
Industrial Stocks Se¬
on
—
use
National
of
service
result¬
men
ing from accidents and other
ternal
ex¬
knows
business
since
causes
Pearl
Harbor
have' resulted in 28,800 claims for
$38,800,000, with 8,800 of these
claims involving $10,700,000 paid
in the six months ended June 30,
last.
"Deaths
the
from
service
diseases
among
accounted
men
for
8,80Q claims and the payment of
$15,500,000
latest
six
in
benefits.
In the
period 2,600
months'
claims for $4,400,000 were
settled."
Series.
new
folder,
New Jersey
J.vB.
Hanauer
Municipals
&
Co's
monthly
publication,
"The
New < Jersey
Municipal Bond Market," contains
on New Jersey Mu¬
Corp.—The August issue of Broad
nicipal's. Copies may be had reg¬
Street Letter.
Selected Invest-:
ularly! upon request from J. B.
Aircraft
"Are
valued?"
.
.
Co.
ments
Street;-Sales
Things
issues
Seemed
of:
Import¬
payable
of
Sept.
20,
record
1944, to
Aug. 31.
Maryland Fund: A dividend of 6c
per
the
if
if.
•
Congress, with its head in
clouds, had two plans be¬
fore it.
The upper chamber
had the Kilgore-Murray bill
the
which
of
it
threw out
in
favor
the
George plan.
The
got the George bill and
so
many knives into it
House
threw
it
longer
no
tneans
thing.
a
'
:
if
■■■■■
■■
The British
*
■■■•
is
•
"Economist," in
discussing the Bretton Woods
talkfest, points out that the
plans set up by the conference
can
work only
in a
.
world
in
which
countries
.
the
major
successful
were
in
avoiding
crises." It fur¬
ther points out that the United
.
.
States is the "least persuaded
of the
necessity of taking posi¬
tive action to control the
eco¬
nomic environment.''
•.•"jji'y-
£
*
!
•
-
❖
'
■
Congress apparently is not
the least concerned about the
future.
In its
own
through
Motions
way
the
it is
motions.
iff fruitful,
certainly lead to a
major depression.
which,
will almost
'. > ;.
"
❖
is
All this has of
1
i]z
course
noth¬
Hanauer, &
Co.,
1180
Raymond
Blvd.,. Newark, N. J.
ing to do with the immediate
market outlook.
the
market
For,
isn't
so
far,
concerned
with
Second
Fund, Inc.: A dividend of 10c per
stockholders
foir
once
essential facts
Dividends
Massachusetts Investors
share
really
store
.
Current
—
Under¬
Stocks
Broad
.
.
in
over.
#
going
~
is
industry
or
shooting is
For the
nobody
what
.
in
Stock
Ltd.—A
Hare's
.
and
Investors
National Securities &
.
Corp.
and
brochure
aggregate
an
Vo¬
plan$
head¬
with
up
that
the
merchant
*Of these
action,
for
;; "Deaths
.
ant."
Corporation
in
claims
•
by the life insurance com¬
panies as the intensity and scale
of
fighting increases, they ac¬
National Securities &
The PARKER CORPORATION
*
That everybody is begin¬
ning to look at the war as
something over the dam is no
great secret.
Financial coif
umns
are
full of grandiose
theories of what plans for the
post-war era will be.
Some
view the prospect with alarm,
that
"A breakdown of the claim pay¬
armed
ments
"These
Research
of all benefits
in that half year.
16,400
of $14,"While war death claims repre-i 900,000 were paid in the first six
sent a steadily increasing propor¬ months of this year.'
'
.
authorized
is
out under war conditions,
inquiries
obtained
men
have continued the marine shows that up to June 30
policies they bought for' last 38,300 claims for $39,900,000
protection of their families, were on the lives of policyholders
ries
Prospectuses upon request
4.1%
poli¬
service
service
letters for dealer
SrcuRiiniS SiRiis
of
the
pay¬
In 1943
paid: under
lives
to
of
civilian
Research
NATIONAL
the
going
Hugh W. Long & Co.—A revised
.
benefits
on
amounted
on
Owns Dividend Shares and Why".
.
4.9%
benefit
death
cies
ments
Fund
.
only
by the companies.
met
counted in the first six months of
Shares and Union Bond Fund "C";
also a revision of the Affiliated
from
claims
*
death
ments
amount
August is¬
sue of Perspective
discussing the
post-war
outlook
of
packaged
foods; a brochure entitled "Who
folio folders
may be
"The
of
under
Insurance,"
Calvin Bullock—The
'l'\-
tion, Keystone : Corporation
just published a new folder
Prospectus
have
benefits
to
received
Life
said.
Institute
depend¬
who
men
additioh
the
the performance of
for
year
$614,000,000
"These payments to the
figures
Steel Industry Series of New York
.V:' '*
the war is $94,200,000 under<t>
75,900 claims, said the report, and the
National Service
on
paid in the first six
was
of
Abbett reproduces the BARRON'S
vestment, the folder suggests the
StOCkS, Inc.
*
racious readers of these
-
Institute of Life
Business
entire
behind
the
Insurance, and made public on Aug. 30.
The
aggregate of payments resulting from deaths in service since the start
"cumulative effect of value selec¬
a
and to explain:
'
of
companies under 27,800
claims involving civilian policies owned by members of the armed
forces and of the merchant marine, according to records compiled by
cur¬
to
for
whoop-la
with a dull
on
*
,
the
our
are
requirements
.
American Business Shares led the
steels
Relief
months of 1944 by American life insurance
t
four-page job: performance of the 10 other funds.
striking charts to illus¬ From the end of 1942, however,
economy
"5.
prices will
peace comes,
successful end.
Thirty million dollars in death benefits
cellence of the Keystone perform¬
The figures speak for them¬
trate the basic position of steel in
why
to
Payment Benefits On Civilian Policies
Owned By Service Personnel In First Half Of '44
ance.
*
"Steel—The Mas¬
It is
far
as
Death
with
indices
stock
1940 and the end of
Hugh W. Long & Co. has issued
have
various
bond, preferred stock
The
Funds.
tion"
on
six
that of the 10 Keystone Custodian
formance
ouU to
Two memoranda
first
the
performance' of
turn
significance with re¬
spect to the list of holdings of this
with
It* covers
figures 20-97-4-44.
figures
statistical
fund.
"Security Market Perform¬
common
rent
on
partial war
go
NEW YORK 5, N. Y.
•
looked
just
makes
usually end
of American
memorandum
on a
economy inasmuch as the conflict
in the Pacific must be pushed to
63 WALL st.
earn¬
corporations.
the
to
liberated areas, together with the
National
from the
list
select
is
the idea
across
from
corne
it
But
adjusted
"4. We will be
com¬
,
not
vocal
aches and confusion.
caption
see a divi¬
this."
putting
Stock Series
ing
never
like
have
clines
do
that
the
market
It looks fantastic and the
check
farm
protected by govern¬
* Y
' 7 ••
are
most
months of; 1944 and compares the
check, signed by all
reads, "You will
partially
a
ance."
the companies represented in Na¬
tional Stock Series, is portrayed.
dend
of major
Prices
ment loans/
crowd
of
room
expect.
many
Ceilings have prevented run¬
away price advances so that de¬
well-known
A dividend
as
GROUP, Incorporated
titled
slants.
i
as severe
event.
as
but
Series and Industrial Stock Series
leading to
the Bureau
"2.
on
National Stock
recessions will probably not be
conclusion,"
a
attach itself to
something that had some ap¬
pearance of stability.
But the
exception of some better than
average buying, which the
public doesn't know about, or
if it does, ignored, the board
lack lustre in its eye.
survey of the "Outlook for Commodities", says
writes, "are:
worthwhile and informative read¬
ing
a
unemployment which will follow, widespread
contracts, the Commodity Research
Government
considerations
modities
Planning"
and
in Reconversion"
Ceilings
recent
such
distributors
the discussions in the last two is¬
sues
Bureau in
"The
Request
interesting and
Not only are
material.
unusual
of
Prospectus
Securities & Research Corp. is one
which has to its credit a consid¬
and
cancellation-
that price
have redoubled their efforts dur¬
ing
confusion
the
on
lasting im¬
a
Although it is believed in many quarters that an early peace
sharp reaction in commodity prices predicated
Railroad
v'
the job during this pe¬
on
tcj
mar¬
seeking to
activity has been .reflected
again this year in the output of mutual fund literature." While the
practice of investment company sponsors to save their good ideas un^
til investment dealers are all back on the job may be sound in
theory, the situation it creates can work ftoth ways.
really
the
hews
war
ket persisted in acting as a
stray maverick. It wandered
around, apparently friendless,
minneapolis; minnesota
'
The usual August lull in investment
A
I
barrage of good
a
excellent
INVESTORS SYNDICATE
Before Labor
Y
By WALTER WHYTE
share payable Sept. 15, 1944,
to stockholders of record
Aug. 31.
M. S. Wien Celebrates
25th Anniversary
long-pull objectives. Its
primary concern is the pros¬
pects for the next few weeks'.
❖
*
is
M. S. Wien & Co., 25 Broad
Street, New York City, is this year
f Looking at the market
celebrating the twenty-fifth an¬
niversary of the formation of the through these short-range,
firm in
1919.
.
'
(Continued
on
page
901)
Volume
160
THE COMMERCIAL & FINANCIAL
Number 4312^
887,
CHRONICLE
The Cotton Dilemma And Its
Offerings Wanted
Importance To American Business
Railroad
Reorganization
Empire & Bay State
Telegraph Co.
(Continued from page 884)
Whole¬
sale distress and unemployment
in the Cotton Belt would severely
restrict markets for products of
the North and West, besides caus¬
cotton is expected to
ing desperate competition by the
displaced Southern workers for
livelihood inthe production of
commodities that have been sup¬
an
elsewhere. Preservation of
cotton-growing in¬
dustry is a matter of vital moment
to business, agriculture and labor
Southern
the absence of wholly
"In
be filled
as
as
Members
Broadway
61
York
New
Stock
Pacific and Atlantic
Telegraph Co.
New York 6
<
Bell Teletype—NY 1-310
Southern and Atlantic
Telegraph Co.
Railroad Securities
!•--av-
n.
-• ■■
Thesold bugaboo of the "monopolistic practices" of the railroads
has been brought out of moth balls a little earlier this year than
i
less production can be increased
cot¬
rapidly, stocks may be reduced to usual.!*: Last
year it was not until October that Vice-President Wal¬
ton situation, it appears inevitable
low levels and producing capaci¬
that the nation will find itselflace, who was then carrying the ball, viewed with alarm this blight
ties taxed to meet the immediate
face-to-face with a serious dilem¬
jto the economic growth of . large sections of the country.
This year
post-war
demand.
A ; possible
ma in the not distant future. No
offsetting factor, the importance jit is the Justice Department which finds the collusive discrimination
single means of escape yet sug¬
deplorable.
Last
year Vice-Presi-^
—-—'
———
of
which
cannot
be accurately
dent
Wallace's sympathies were whole has an operating ratio of
gested seems both adequate and
judged now, is the reduction in
close to 100%, and unless it gets
practicable. If events follow their
largely with the Southern terri¬
the wprld's cotton-processing ca¬
y, usual course, a partial solution is
tory;' This year the spotlight is on higher rates is apt to die of mal¬
pacity due to wartime destruction
the politically more doubtful west¬ nutrition. If the waterway com¬
likely to be sought in a combina¬
and deterioration of plants? arid
tion
of
measures
some y price
petition referred to is intercoastal,
ern section of the country,
machinery.
r.
concessions, some modification of
j -The anti-trust action recently it is notable that that industry
instituted against railroads in that cannot operate profitably consist¬
v
The Long-Term Outlook
acreage restrictions with increased
normal conditions
production, some/ tariff y adjust¬ M"The long-term outlook for cot-: territory, two agencies of the rail¬ ently, under
with the present rate structure.
ments, some reliance on foreign
ton
depends partly on general roads," and two banking houses,
If
inland
waterways
were referred
credits, some use of subsidies, y;* economic conditions and interna¬ according to representatives of the
i \ "For
the rest, the salvation of tional trade policies, partly on the Justice Department, will not be to, that is a subsidized industry
the industry must depend on such development of new uses for cot¬ tried for'six months or a year; with rates acknowledged as well
aid as may be found in industrial ton products, and partly ■ on'the Nevertheless, publicity attending below the level necessary to cover
research, trade
promotion, im¬ competition' of other fibers and. the" action may be expected to costs.; K
Another contention is that the
proved methods of cultivation, substitutes. The net effect of these remain fairly active until after
Western roads, through collusive
more favorable
conditions of in¬ various factors is admittedly im¬
jthe fall elections. It hardly seems
ternational commerce and higher possible to forecast with any as¬ credible, in the light of the
facts action, have been deterred from
standards of living throughout the surance at present. Swift progress known to any one with even a improving passenger facilities and
world.
Both
farmer's organiza¬ in the chemical industries and in rudimentary knowledge of rail¬ service. Any one who has traveled
tions and manufacturers are be¬ industrial techniques in general roads and railroad operations, that west of Chicago knows that the
ginning to give serious attention will probably bring increasing the action is motivated by other Western roads were actually the
to research with a view to devel¬
pioneers in improved passenger
competition to cotton in some of than political considerations.
service both with respect to equip¬
oping new uses for cotton, means its uses and at the same time give
jJThe
action
naturally
finds
fault
ment and low-cost tourist accom¬
of substituting cotton for other rise to new sources of demand for
jwith the rate structure and rate- modations.
In
large
measure,
fibers, and methods of combining it. i Many trade authorities look
making practices.
This has also
trains on regular
runs west oi
cotton with other natural fibers
forward with very serious appre¬
long been a favorite political cry
and
synthetic
materials.
Fur¬ hension to the inroads which they in the Southern territory. It,is Chicago compare favorably with
the de luxe passenger trains run¬
ther improvement in agricultural
believe will be made in cotton
charged that rates imposed in vio¬
ning between Eastern metropoli¬
methods to the point where yields markets by the various synthetic
lation of anti-trust statutes dis¬
tan centers.
The most charitable
averaged % bale per acre would fibers. Some consider the outlook
criminate against the West and
go
far
toward
reestablishing in this direction quite as menac¬ have retarded the growth of that conclusion is that the instigators
of this
action have never been
American cotton on a competitive ing, from the standpoint of the
territory.
Population trends and forced to travel by train. ■
basis in world markets. Textile cotton grower, as the prospective
the consistent rise in the value of
manufacturers also are improving competition
All in all, it is difficult to vis¬
of
foreign
cotton, manufactures from that area in
their methods, thus preparing the Others believe that the new uses
ualize any means by which the
relation to the Eastern territory
will fully offset the competition
Justice Department can hope to
way for lower costs and perma¬
for many years prior to the war
nent enlargement of sales outlets. and that, if a general economic
hardly support any such claim. uphold the arguments put forth in
the anti-trust action.
The action
Prospects
of
this
kind, while background conducive to healthy
Moreover, rates are in the prov¬
necessarily somewhat vague, may international tra$e can be set up,
ince of the ICC, and if there had may well be continued for quite
in the aggregate outweigh the ad¬ the future world market for cot¬
a lengthy period, and will unques¬
been discrimination it would have
verse factors that have been oper¬
ton will at least equal that of the
Never¬
been a very simple matter to com¬ tionably be bothersome.
ative in the past and result in a past.
theless it is not believed likely
foreseen developments in the
Brill
MEMBERS
Broadway, New York 5, N. Y.
120
So.
231
—
favorable outcome than can
.be definitely foreseen at present.
Effects of the War y
enormous
mand for cotton
wartime
de¬
goods has radical¬
ly altered the situation by making
American cotton growers tempor¬
arily independent of foreign mar¬
kets. From an average annual vol¬
ume
of 6 million bales before the
If it is unre¬
plain to that body.
possible exception of stricted
competitive rate wars be¬
abandonment or
tween individual railroads that the
modification of the price-support
Justice Department is trying to
policy would appear to be the
bring about they are woefully ig¬
of
"With the
tariff
revision,
Baltimore & Ohio
most
essential
sound
and lasting solution of the
feature
any
problem.
Unfortunately,
the
political
difficulty of this
course has been only too clearly
cotton
demonstrated
ments.
by recent develop¬
With cotton prices at home
suit will have any real
the railroads involved
railroad operations in gen¬
effect
nor
on
on
If by any chance
eral.
the Justice
transportation Department should be successful
in bringing about a new system
legislative setup and are certainly
of independent rate setting by in¬
inviting chaos.'
dividual roads it would unques¬
The Justice Department further
tionably mark the beginning of
accuses the railroads of hindering
the end of private ownership of
and
preventing development of railroads in this country.
domestic consumption has far above those abroad, with the highway, waterway and pipeline
approximately 11 million average domestic price more than competition by forcing them to
bales; the acreage-restriction pro¬ twice as high as the outbreak of keep rates to the high levels main¬
tained by the railroads. The traf¬
gram has been suspended; and the the war, and with a national pol¬
fic already diverted to these com¬
price of raw cotton has more than icy devoted to the maintenance
doubled. Price support, however, of general price stability,
Con¬ petitive carriers is one answer to
Another is that
remains an official objective, as gress has seen fit to exempt cot¬ this argument.
evidenced by the provision of the ton, along with other farm prod¬ by and large many factors point
to the conclusion that all transpor¬
price-control act requiring the
ucts, from the full control exer¬ tations charges in the area are unOffice of Price Administration to
cised over other commodities. As economically low rather than arti¬
make ceilings for cotton products
reflect parity prices to growers of long as this state of mind persists, ficially high.
raw
material.
there
indefinite period, per¬
haps several yearse. following the
end of hostilities, the demand for
"For
4*/2s, 1960
an
seems
little
A very large percentage of the
;total bankrupt railroad mileage in
prospect ; of j
thorough-going revision
of price
"
policy."
is in the Western sec¬
The trucking industry as a
the country
tion.
'•■'
Discussion of
V
»
,
-Interpretatioa of Narrowing Trend
We
are
now
trading
on
request
*A
*
HANOVER
2-1355
let
Teletype BS 259
:
'
Situations Interesting
In Conn. Companies
Chas; W.
&
Scranton
Co.,
209
Church Street, New Haven, Conn.,
members of
% New York Stock
Exchange, have prepared memo¬
on Acme Wire Co.; Veeder-
randa
Root, Inc.; Scovill Mfg. Co.; Ar¬
& Hegeman
Electric
Co.; Landers, Frary & Clark, and
United Illuminating Co., Connec*!
ticut situations which appear at¬
tractive at current levels.
Copies
row-Hart
of these memoranda may be had;
from
Chas.
upon
request.
&
Scranton
W.
Co.,
tTax Free In Pennsylvania
H. H. Robertson
is
tax
fers
free
in
interesting
cording to
a
Company, which
Pennsylvania,
possibilities
of¬
ac¬
memorandum issued
by Buckley Brothers, 1529 Walnut
of the New York and
ning in the
Exchange!
Philadelphia
Copies of this
memorandum
may
the firm upon
request.
had from
be
they have been run¬
in the series
"Financial Chronicle."
booklet may be had
Copies of this
request by writing to Mark
Merit, in care of Schenley Distill¬
upon
ers
Corporation.
New York 1,
350 Fifth Ave.,
Virginian
N. Y.
Railway
tbe
new
"when
•
SEABOARD RAILWAY COMPANY.
*;
*
'
v
1
.
'
>
Preferred Stock
4V2S
Pfd.
is given and
all transactions.
stock exchange name
required
by
us
1. h. rothchild & co.
NEW YORK 3
TELETYPE NY 1-1310 •
Corporation
prepared an attractive book¬
containing the first articles
on
"
Members National
**
TEL.
:
N. Y. Telephone HAnover 2-7914
SEABOARD common
'
STREET
Schenley Distillers
have
SEABOARD Non-Cumulative
c
WALL
v
Stock
SEABOARD 70 year income
Mclaughlin, baird & reuss
ONE
St., Boston 9, Mass.
Tel. OAF. 0425
SEABOARD 50 year 1st 4s ;
•
Members New York Stock Exchange
148 State
St., Philadelphia 2, Pa., members
Available On Request
brokers and dealers in
as
issued"- securities of the new
of Rail Earnings Decline"
Copy
Pollak Manufacturing
norant of the entire
risen to
the
Conv.
that this
war,
y:
St., Chicago 4, 111.
LaSalle
-
..
"The
other
and
Exchange
Stock
leading Security and Commodity Exchs.
.
y
Corp. 7% Pfd.
York
New
.
more
v
,
.
International Ocean
Exchange
Telephone—DIgby 4-4933
apparently declining,
and their probable size at the end
of the war is problematical. Un¬
un¬
•"
'
•
*
pflugfelder, bampton & rust
need
soon
at least, are
throughout the country, ' r
~
have to
1
i
Telegraph Co.
peacetime trade channels are re¬
opened.
To meet this demand,
large stocks of raw cotton are still
available in producing countries;
but these stocks, in some countries
plied
'
accumulated
enormous
will
.
the
Securities.?
equal, if not
exceed,
world
production. The
people of many countries have
been without adequate supplies Of
cotton goods for several years, and
the borders of the South.
of Securities
Association
Dealers, Inc.
52
Adams & Peck
63 Wall Street,
specialists in rails
wall
HAnover
street
2-9072
n. y. c.
5
tele. NY 1-1293
BOwling Green
Boston
New York 5
9-8120
Philadelphia
Tele. NY 1-724
Hartford
Thursday, August 31, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
888
Contest
Brewing In Congress
On Bretton Woods Agreements
SPECIALISTS
in
/trading markets in
(Continued from page 882)
Real Estate Securities
want
REAL ESTATE
Since
'
1929
' '
normal
SECURITIES
V
this
Seligman, Lu bet kin & Co.
Members New
Members
New
na¬
suffering like ourselves in
war.
concentrated
banks,
compared to the possible loss
under the fund." ::/-;;//// ■ /
as
40 EXCHANGE PL.,N.Y.
Bell Teletype
»
Dlgby 4-4950
HAnover 2-2100
Broad Street, New York 4
41
s
NY 1-953
;
Real Estate Secnrities
We Are Interested In Buying
'/•//
Iff -v
Broadway Trinity Place Corporation
A Study Of Deflated Values
AND
TUDOR CITY UNITS
Y. Security
Dealers Ass'n
BROADWAY
v\.
Y.
with unwillingness to cooperate
and
saying, "The inflation of real estate before the depression attained
a record high
level in New York State. " The succeeding deflation
carried values to lower depths than elsewhere and the recovery in
\
tionist"—which I
nation."
Around
V
this
•
statement
hinges
Real estate bonds have for years
sold
at
discounts from par
large
value.
The
this
for
reason
arriving at a level
sufficiently discount
would
the
predepression
Bought—Sold—Quoted
aid
earnings, real es¬
prices have had a con¬
bond
Members New York Stock Exchange
issues, that average
48% of par value.
y.
The
—
.'// CHICAGO and MIDWEST
bond
estate
ESTATE
tage
\ :y
;
*•
J
a
buyer.
The
advan¬
of
being able to purchase
this type of security below the
safety price level is obvious. In
SECURITIES
,Y.' ;
if/
-/
Accurate Quotations in All Issues
addition to
buyer
good investment, the
would also have the ad¬
a
vantage of leverage of price ap¬
preciation. V-
FIRST LA SALLE CO.
La
So.
11
Salle
How
St., Chicago 3, 111.
Tel. Central 4424
Tele. CG 660
then
taining the
to
of property
bond issue?
about
go
proper
value of
securing
Shall
ascer¬
a
piece
real estate
a
the
take
we
original cost of the property and
deduct
Attractive Situations
much each year
so
preciation?
This
would
for de¬
not
be
Co., 120 Broadway, New
York City, have prepared circu¬
feasible because the cost may have
been
inflated
and
reproduction
lars
value
Ward &
several
on
currently
offer
situations
which
attractive
possi¬
we
may
be
much
property
& Co. upon request.
,
>
Du
Mont
Laboratories
the
cedure
as a
criterion?
would
not
either, because
fact
that
be
we
the
assesses
the
tax
Collier
we
Distilling;
CrowellPublishing; P. R. Mallory;
Instrument:
Long Bell
Lumber Co.; Great American In¬
dustries; Mid-Continent Airlines;
Massachusetts
Power
&
Light $2
preferred; Majestic Radio; Magnavox
Corp.; Electrolux; Purola|tor; Brock way Motors; Mohawk
Rubber,
Moxie,
Scoville
Mfg.;
Douglas Shoe; and American Ex¬
port Airlines.
Boston & Me. Looks Good
Boston & Maine Railroad prior
preferred and first preferred offer
attractive
possibilities according
to an analysis of the situation is¬
Shall
more
This pro¬
satisfactory
must discount
higher the mu¬
the property,
nicipality
Merchants
"A"
less.
take the assessed value of the
bilities, the firm believes. Copies
of these circulars, on the follow¬
ing issues, may be had from Ward
General
addition'
to
&
new
bond
each bond¬
represent¬
ing an equal share in the owner¬
ship of the property; The rvalue
of this equity may be judged by
the fact that during reorganiza¬
mortgage
received
holder
tion the former
turn
stock
offered to
owners
to the
over
bondholders ap¬
proximately $120,000 in order to
ownership while the bondholders
would receive the other 20%. The
owners' plan was refused and the
bonanolaers received all the. equi¬
ty.
The bond issue of $4,595,500
left intact and not reduced,
is being done in so many cur¬
was
important problem, how¬
is to ascertain the proper
level at which
REAL
first
benefit^ to; th6; "bond¬
In
holders.
rent
reorganizations.
The advan¬
of this is apparent from a
given real estate tax
standpoint. Large funded debt
bond should sell in order that it
permits deduction of large inter¬
may be considered a safe invest¬
est distributions before being af¬
ment.
If this figure can be ascer¬
fected by income taxes.
tained, it would become a valu¬
As stated before, this $4,595,500
able asset to the potential real
ever,
IN
hiaximuih;
as
Dlgby 4-0964
SPECIALISTS
stands at
now
of the bond issue resulted in
the,re^n approximately 80% of the
tinual ppswing. According to one
index covering 200 Eastern realty
BENJAMIN, HILL & CO.
—
with
of wartime
tate
1 wall street, n.
In
inflation.
the last couple of years,
'
was
the necessity at
that
Recently completed reorganiza¬
tion
buying, namely, the actual value
of the property securing the bond,
MORTGAGES
they
receive,
and
tage
bond issue represents a first mort¬
gage on a 38-story office
at
39
Broadway
and
building
bond
each
carries with
it stock representing
equal share in the ownership
of. the property. The building is
an
one
of
the
most
modern
the
in
therefore
consider
their
facts
mentioned
consideration
are
taken
into
together
and
not
separately, and then are weighed,
a
pretty fair conclusion may be
Co.
Upon
request.
deflation.
Who,
a
the
money
being termed
am
"isola-
not.
//.- •
'Thus, it would appear, "face" is
exclusively'-the property of
hot
Orientals
and
consideration
a
in
the adoption of the Bretton Woods
plans is what the rest of the world
•would think of/us: iL we : chose
Some other policy. Many Ameri¬
prefer this country to be
called "Uncle Sap," rather than
cans
f'Uncle Shylock." The trouble is,
might be called both,; in:,
we
cession,
suc¬
Z
last time.
as we were
The: Congressional
silver
LowerWage
Income Ahead
(Continued from page 883)
better than 48 hours a*
.
averaged
bloc
has been heard from and will be
with
rentable
area
000 square feet.
of about 330,-
'
.'/:://
At
the
current
price
of the
bonds, 36%, a value of only $1,650,000 is placed for the entire
property.
In
1929
the- former
,
paid approximately $9,500,000 for the property of which
owners
cash
investment
300,000.
was
about
$4,-
Current assessed value is
$4,950,000.
-
v
.
During the month of July, 1944,
announcement
was
made
that
15
work"
property
tive.
at
is-applied,- first,-to
3%
per
annum
bloc
the
it
its
sell
can
price of
tries
do
to
support
the
at
benefit/for silver,
some
Senator .Scru-
so.
gham (D., Nev.) is quoted as'saythat
•ing
ference
the
;
of the
the failure
to
silver
bloc's
con¬
favorably
respond
suggestions
to
will
affect its attitude toward ratifica¬
tion
Mr.
of
the Bretton
Robert S.
Woods
Palmer
plans.
thing
parts,
one
'
busy did
about
40
hear any¬
we
hours
.
week.
a
Hence I beg wage-earners to save:
Build
money now.
savings bank'
up
accounts.
Hourly wage rates may '
hold up; but most of you will get '
much less in your pay envelopes.:
| "Technological
-
has
progress
possible to turn out more
production during a shorter workweek. New and
•
efficient ma-1-
more
machines have not been permitted
to work on a capacity load.
With
overtime out, workers themselves'
may' insist on a'44 or 48-hour
week, and they may get it. But
they do, they will be expected
to work and to keep the machin¬
if
working:.
ery
be
tolerated
More
do, who speaks for various silver
Slowdowns will not
after
the
Less
or
war.
;
.
Leisure?
Competition in all lines will be
outstanding
factor
as
we
emerge from the transition period
ence in New Hampshire, has been
of
war
to
peacetime
operation.
—according to the press—calling
competition
will
not
be
for
Congressional opposition to This
the Bretton Woods plans and for merely a domestic issue but will
be worldwide.
There will be no
higher prices for bullion.
place in our peacetime economy
Thus, notwithstanding the poli¬
for the idle, lazy or inefficient;
cy of postponing debate on Bret¬
and
that
gold mining interests and in
capacity visited
the absence from
Woods and
ton
the confer¬
finan¬
cial cooperation seem to be rely¬
ing largely on currency stabiliza¬
tion by the "key country" method.
approach
international
to
This would
involve first stabiliz¬
ing the exchange rate between the
dollar
and
the
pound sterling.
Along this line,
the
of the leading
by a so-called
plans—advocated
"international
banker"
—-
would
cancel the debts of World War Iy
put
five-year
a
lend-lease
in
the
on
Dec. 31, 1943, and
first four
months of
1944
clared payable as
of July 1, 1944,
and $3,611 was paid into sinking
fund
(this should retire-about
$10,000 of,, bonds at
prevailing
prices). Occupancy is about 96%.
.
The
annual
rent
roll
of
Very large domestic and foreign
markets
States
will
exist
goods.
for
In view
United
of this,
I
believe, given a chance, that the
question
of
employment
may
largely
solve
itself.
Workers
themselves, with
efit
of
their
without ben¬
or
unions,
chose
must
whether they want more leisure or
a
larger share of
which
a
consumer goods
longer work-week—with¬
out /overtime—can
provide..
/Price Versus Wage Rates
C
"
The
*
average
learned
to
war
less
the
on
has
consumer
along during the
get
than
he
had
before
Hence, if the prices of
goods rise too high and get out
war.
of line with salaries and dividends
we
are
apt to see "buyers" strikes
rather; than
White-collar
it
on
wage worker strikes.
workers have taken
the chin in recent years.
group,
forward
in the way of salary
Hence prices of goods
kept within reach of their
to
increase.
must be
As
they have nothing to. look
a
;
pocketbooks.
A return to
a
free movement of
and prices with a recogni-:
tion of supply and demand, rather
wages
than to
and
a
continuance of political
man-made
Unfortunately,
laws, is in order j
most
of
us
.learn
only by experience when evaluat¬
ing hours of work,
wages and pro¬
duction schedules.
These matters
are,
however, definitely
our
reconversion
war
will be brought to a successful
conclusion
ers.
I
some
$540,000 should produce earnings
of at least 3% on the bonds;
-
must work.
everyone
one
to
divided into two equal
"spreading:
indirectly ' raising'
of Colora¬
payment of aci- reported gross income of $203,340.
cumulated unpaid interest. Third, Earnings for the "four months', pe¬
balance up do $75,000
per year riod were $49,566 or 1.08% on the
to
Interest of 1% was de¬
sinking
fund.' /- Fourth, bonds.
Second,
and
wages got
;
of
connection
the Bretton
subject of
in¬ the property
cumula¬
ideas
chinery can produce more in a;
given period; but, actually, even
Woods Conference. Whenever that during our critical war days these
with
the British
terest
their,
iheard from again, in
having
been Washington of many members of
It is well lo¬ the
Congress, the lines are being
cated, just one block south of Wall drawn for a contest. Outside of
Street fronting 89 feet on Broad¬
'Mr. Dewey's H. R. Res. 226 and
way extending back
190 feet to his latest suggestion for expand¬
Trinity Place.
It has a ground ing the Export-Import Bank, al¬
area
of about 17,250 square feet
ternatives to the Bretton Woods
a
Not until the New Dealers
week.
made it
section,
completed in 1928.
and
decade
or more ago, "drove
changers from the'
temple," today advocate exchang¬
ing any currency for any other.
financial
Price, McNeal & Co., 165 reached. V
We have taken a bond
Broadway, New York City, who
issue
point out that there was no post¬ called
Broadway Trinity Place to payment of additional nonwar
slump in railroad business Corp., representing a first mort- cumulative interest up to l*/i%.
after the first World War and that gage on a
38-story office building, I Fifth, all remaining income is to
pessimistic predictions may also as a study today.
We feel that be paid into a sinking fund until
be wrong this time. - Copies of the this issue has
appreciation fea- issue
is reduced to $2,000,000.
study, discussing the situation in tures and emphasizes the lack of Providing their interest is paid at
detail may be had from Price, Mc¬ proper recovery from excessive. 4V2%, then net income is to be
&
I
with
moratorium on
repayments, and lend
$5,000,000,000
of Amer¬
office buildings in New York City
ican gold. To those like Congress¬
on
an
appraisal of the property were sold at an average of 68.3%
man Dewey, who fear that Amer¬
by a reputable real estate broker? of assessed value. Assuming thereican billions lent by the Bretton
This might help, but is not en¬ lore that the reasonable current
Woods formula would be lost, it
tirely satisfactory inasmuch as it sales possibility of this property
imagine that the
would give an opinion as to the is the same percentage of assessed is: 'difficult to
value of the brick, mortar and the valuation,, a price of $3,385,500 is
land.
Earning capacity of the arrived at, which certainly com¬ part for sinking fund and one
most favorably with - the part for dividends on the stock.
property is an important factor pares
and
very
often determines the value of $1,650,000 at current mar¬ Working capital of $40,000 must
be maintained.
/
price at which the property, is ket of the bonds.
«
marketable.
Available
However, if all the
net
income
of
the
\ Present corporation took title to
must
opinion of the value to be preju¬
diced.
Shall we therefore
rely
sued by
Neal
run
|
the most important hypothesis and
intellectiveness of real estate bond
CERTIFICATES & I
willing to
i
WOrth 2-05IO
j
not
we are
the awful risk of being- charged
the
TITLE CO.
that if
the risk of losing money we run
V
I
;
by the fact that the present"international bankers" are
really the New Dealers. Those
the gentle¬
.
recently to John H. Fayey, commissioner
of the FederaloHome Loan Bank administration was of special sig¬
nificance to investors in New York real estate bonds.: He was quoted
later years has been much slower^
in New York than in the rest of
:
NEW YORK 6,.N.
:
as
CORP.
SECURITIES
.
bankers.
day
-
-
Gifford: /
York
New
among
the international
apparent paradox is height¬
man's way of dealing out things
' and
explaining convinces me
!
The statement attributed
C. H. TIPTON
ill
Mr.
safer.
any
ened
it from an enlightened, selfish
point of view just exactly as
every other nation will, to pro-
tect our rights..
f
'
by joiin west
.
j
ALL
FRED F. FRENCH Stocks
Members N.
This
Mr. Dewey: But I want to do
j
seem
According to Washington opin¬
ion,
banker
opposition
to
the
Bretton Woods plan of stabiliza¬
tion is not nation-wide, but is
Gifford: But with $28,000,000,000 lend-lease operations
going on, think of our loss there
/
Dealers Association
York Security
$5,000,000,000 to the Brit¬
ish would
a
Mr.
j
Incorporated
Exchange
York Curb Exchange
Members New York Stock
-of
other
toward
loan of
the
assume
responsibilities
nation
great
tions
SHASKAN & CO.
country to
our
will be
our
by
hope
as
our
our
a
part of
The
program.
military lead¬
post-war
plans
successfully handled by
political leaders.
-
•
<
Volume
889
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4312
160
ADVERTISEMENT
"Our Reporter On Governments"
JOHN T.
bond
Government
The
-
NOTE—From time to time, in this space,
CHIPPENDALE, JR.
market
in
the
there mill appear an article wh ich we hope
will be of interest to our fellow A mericans.
past week was firm
This is number
to
continued good demand being in evidence for the 2%
taxable bond group, with a somewhat firmer tone being displayed
by the partially exempt obligations. . . . Nevertheless, it is indicated
that many investors are becoming quite cautious at this time because,
of the belief that with very important events impending, the Govr
ernment bond market may be subjected to, some fluctuations pending
the clarification of these uncertainties.
\V
1
strong, with
.
American
.
.
'
other
! tates
The recent fluctuations in the partially exempt obligations due
..
.
.
.
.
do
this,
.
INVESTMENT
some
Art example
of
certificates
>; bonds
1967/72.
due
.
EXCHANGE AND
OTHER LEADING EXCHANGES
'
//f
_
V
-•
?
v
in
bonds taken on by these institutions in the "com¬
purchases" are those selling closest to 100, the feeling being
any unsettlement should come into the Government bond
market because of sudden world developments, the worst that would
Home Office Atlanta
*
•
securities.
these
.
.
buds
.
.
had
that
made
been
Series
E
Other
Securities
Savings
$3,036,000,000
.? 3,315,000,000
Bonds..-.
i.
-
Treasury recently announced that the %;%
1, 1944, and outstanding
The
indebtedness maturing Sept.
Other
pronounced in
■■V
certificates - of
Pujrcha$es
IhVdstorsi.
Total
a
.
.
both
9,994,000,000
.
by
.I—.
Corporationsand other "' ■
I-.™;
—••
$14,288,000,000
an
Dec. 15* 1944.
100.0%
"$20,639,000,000
Purchases for .Treasury
—
'
1—
___:
$593,000,000
Amount
Total
?
'* sales
"
of
during
all Sources
i-i'i.
"Includes
—;
It
$300,000,000-of
deferred
payment
and in the control of the processes
subscriptions
to the
Sales
by
-
shows that insurance, companies
glasses of investors
.
companies, yy . Savings banks, on the other hand, favored the medium
term 2% due 1952/54 with more than four-fifths of their purchases
nually.
.
.
Sales of securities by issues were as
Non-Marketable
Savings
Savings
Savings
-
Issues—
Bonds—Series F
Bonds—Series F and G
Notes—Series C—
Total
Non-Marketable
'
/
■;
Issues.
VA,%
2V2%
•'
'
——
$4,770,000,000
1,948,000,000
5,229,000,000
2,263,000,000
—
$14,210,000,000
Indebtedness, due 6-1-1945
due 3-15-1947
clue 6-15-1952-54___
Bonds, due 3-15-19G5-70
Bonds,
Treasury
Total
Marketable Issues.:
Total
Amount
•
.
—' '
of Sales
MARKETABLE ISSUES
Sales
more
issues
$20,639,000,000
-
23.1% r
9.4
less.
•
-Sources^during- the Fifth
.
.
But, the expert blender
rifices the "native,"
never sac¬
underlying
American, flavor. He, too, believes
.—"America makes
everything."
.
the
V /
best
of
*'
P. S. War Bonds—the best Ameri¬
.
.
can
,
.
bought only $760,000,000 of securi¬
during the drive, they were much
important in an indirect way with purchases of the outstanding
amounting to $4,900,000,000. ; . . Holdings of bills by the re¬
Investment—Buy 'em
and
Hold 'em!
FREE—Send
a
postcard
or
letter
Schenley Distillers. Corp., 350
Fifth Ave.,,N. Y. I, N. Y. and you
will receive a booklet containing
to
Wellington To Be
' 68-.9%
■
; r
•
100.0%
► .
obtained by the Treasury from all
$21,997,000,000;.* was* in'line.*
-War Loan- of
The Bureau of Internal
incomes of $5,000
annual
25.3
l'l.O*
"
.
amount of funds
.
being in securities of this type.
T«; Form
29 that it
form for wage-earners with
Revenue announced on Aug.
has devised a, new simplified income tax
;
total
color
.
TreMiny-ARRom^^
$2,300,000,000 and sales of the' VA% notes
to $1,900,000,000. . . .
v'v"//4.'^', */'■'/'? l
«
It is indicated that almost 64% of all the securities sold
during the drive were either demand obligations or had a mature 'The
rare
•
2V2% bonds amounted to
ity of three years or
and
,
aggregated. $2,300,000,000, with notes
PREDOMINATE
'
"
porting banks .increased by $1,300,000,000,
of marketable
.
.
While the- commercial banks
securities predominated, due" to - the fact
that these issues are particularly well' adapted to the needs of insti¬
tutions, governmental units and business organizations with large
blocks of funds to invest.
. Sales of the
8-to-10-year 2% Treas¬
ury bonds amounted to $5,200,000,000 with purchase of the. % % cer¬
tificates almost as large, -totaling) $4,800,000,000
Considerably
smaller amounts of the 21/2% Treasury, bonds, of. 19.65/70 and. the
new li/4% Treasury notes were sold during the drive;
sales of the
/,■
new
MARK MERIT
ties* directly. from the Treasury
31.1%
$6,429,000,000
r—
Treasury Notes,
2%. Treasury
gether to create
nnn
Marketable Issues—
%.%. Certificates of
the painter takes his
characteristics^
•
„
.
as
primary colors and blends them to¬
of SCHENLEY DISTILLERS CORP.
1947, and 2% bonds due 1952/54.
than 72% of their purchases
recently made available, data on the results of the
gives considerable information on the most
successful financing by the Government since the war started. ; . .
The Treasury
fame/' and does things with
while certificates purchased reprints of earlier articles on vari¬
showing an increase of $300,- ous subjects in this series.
000,000 and bonds bought amounting to. about $1,000,000,000. .
Thus, either directly or indirectly, the commercial, banks
Wrt.
follows: •
»;
'
bought securities in the amount of $5,600,000,000 during the Fifth
Amount
Percent of Total
War Loan, which made them an important factor in the drive.
Arrowsmith Partner
^'Sionnnnnft
1f'T/e
n!n
William S. Wellington will be
2,575,000,000
12.5 '
'•
.
Fifth War Loan which
of
them, just
government; purchases, along with those of dealers
.
S
scientist. He takes the
whiskies of various ages
and, types from his whiskey "hall
and
^brokers, were mainly in the %% certificates, 1*4% notes and
the 8-to-10-year bonds.
Individuals concentrated very subf- stantially in demand obligations and short-term issues, with more
and local
.
.
a
fine h clean
State
notes due March 15*
...
expert blender is much more an
artist than
,t
preferred-the 2J/2% bonds- of 1965/70: with almost 50%. of all pur¬
chases by this group; being in this issue.,. . . Likewise almost 60%
of the total sales of. the 2*4% due 1965/70 were made to insurance
before any such exchange
.
the
and 2V2%
2%
!
.
is indicated that the Treasury may
distinctive
'[■of fermentation and distillation,
$21,997,000,000
—
INSURANCE COMPANY BUYINGr
the
a
| tion of grain, yeast, water, barrels,?
:
from Direct
Loan from
Funds. Realized
"the 'Fifth; War
—
during the drive.
bonds offered
will* be made,, if. at. all. . . »
decide to pay off these
bonds on Dec. 15, 1944, probably from the proceeds of the Sixth War
Loan Drive, which has been scheduled to start about that time of
the year.
Retirement of these bonds, whether through , other
Government obligations or by cash payment will mean a saving in
interest to the Treasury.
If these bonds should be paid off on
Dec. 15, next, the interest saving would amount to $41,480,000 an¬
year
Rye and the Bourbon
cision and exactitude into the selec-
765,000,000
Commercial Bank Purchases, for Savings Accounts—
INDICATED*
^
the
tjjling industry, particularly during
the past ten years,, bringing pre¬
(2% %
Investment accounts
—J
due 1965-70)
1% notes
though it will be later in
to
of Securities
It was felt in some quarters
it. seems now as
seems
While science has entered the dis-
Mad* Directly:- During Tho
Fifth War Loan but Excluded From Drive Totals.
.
.
.
However,
some¬
•Rye nor Bourbon flavor dominance.
There had been some talk
of
Skillful;
tasto qualities, that please
Whiskey has neither
'69.2%
being-made in that security. , . . The large business organizations
v
.concentrated their purchases in the 7/s% certificates and in the series
that the Government might also make "C" savings notes, which amounted to $5,600,000,000 out of total
exchange offer at this time to the holders of the $1,037,000,000 purchases of $8,200,000,000.
;
4% Treasury bonds due Dec. 15, 1954/44 but called for payment
Li addition, this group purchased $2,200,000,000 of the 1*4%
EXCHANGE OFFER
fine/Blended Whiskey
possess
$4,294,000,000
Savings
purchases by all Investors--
Purchases
that the Treas¬
ury could extend its maturity schedule by another year if the ex¬
change offer were for the 1947 note instead of the 1946 note. .
On. the other hand, the 1947 note was selling at a premium of 10/32
.compared with a premium of 5/32 for the 1946 note. . . . Evidently
the Treasury decided not to give away too' much hi the. way. of.a
premium to holders of the maturing Sept.? 15 notes, since the 1946
^maturity was* the one offered in exchange. . . ♦
V
.
some areas.
30.8%
$6,351,000,000
Individuals.
and
Companies
Total
■■■yyy
:15, 1944, and $635,000,000 of taxable %% .? notes due
Sept. 15, 1944, would be exchangeable for the 1% taxable notes due
March 15, 1946, at par. . . . There had been some discussion prior
to the exchange offer for the Sept; 15 note maturities as to whether
it would be the l%r note due March 15, 1946, or the 1V4% notes
1947.
among
blending, however, has done
due* Sept.
due March 15,
tell the difference
drinker. And, yet,;a fine Blended
in the amount
$283,000,000 of the totally tax-exempt
by
Banks^,--—L.
Corporations and. other Associations--.
Insurance
$4,122,000,000 would be exchanged par for par for % % certifi¬
cates of indebtedness due Sept. 1, 1945. . . . At the same time it
announced that
Purchases
Total
of
was
can
„
,
Corporations and Other Investors—
r
.
i
thing for American whiskies, and'
By these "combination purchases" a larger income is obtained than
would be available if the funds. were invested entirely in short-term
.
per¬
"steaka," 'or
or
undoubtedly been a sectional pref¬
erence for Rye or Bourbon—quite
Percent of Total
Amount
Individuals—
substantial refunding pro¬
after the war, as well as the • financing of the deficit, it is
reasoned that for a long time to come the Government bond market
will be protected, and prices below par for the-long-term securities
purchased, in the groups indicated, is not in the immediate offing. . . .
.
appears
similar,
ithese three types, and there has
.
gram
.
("steka"
it
menu
or very
increasingly popular American
Blended Whiskies, are strictly
,
Phone LD-159
prior to the ending of the
drive.
Results of the drive and purchases of securities by classes
of investors is summarized in the following table:
estimates
with
PROTECTED. MARKET
obligations.
the
for it. Go to
Italy, and if
or
;U. S. A.—in flavor. To be sure,
those .who, possess sensitive taste-
recession in prices to about 100
With the Government faced with a;
native5
American Rye, or Bourbon, or the
if.
.
for
as
"bifstek").
bination
be witnessed would be a temporary
on
English;,
haps,
INVESTMENT SECURITIES
Private Wires
own name
find it
you
'
v
/ BROKERS OF BONDS, STOCKS, COMMODITIES
*
The long-term
that
It is
as
France,, to Spain,
UNDERWRITERS AND DISTRIBUTORS OF
Another purchase of this type was the/
.
.
1952/54.
Some institutions, it was learned, have been purchasers of the
% notes due Dec. 15, 1945* and the 2% bonds due 1951/53. . . .
:
\
have their
BANKERS
MEMBERS NEW YORK STOCK
of this was the reported purchase of the %%
indebtedness due Aug. 1, 1945, and the 2%%
1% notes due March 15, 1946, and the 2% bonds due
any'
"pork and beans," I
"ham and eggs," and "steak." In-'
cidentally, the latter is so American
that few foreign languages, if any,
.
banks have been making "combination pur-,
chases" with part of the funds going in the short-term obligations
and the balance into long-term securities. ...
• . > -;.v
" 5 .
order to
whiskey is unlike
to America
While considerable
funds are still being put to work in bills, certificates and notes, many
institutions must from necessity obtain a return that is larger, thanthat available in the short maturities.
It was- learned that in
market.
series.
whiskey in the world. It imi- {
no other country's "national" J
alcoholic beverage.
to the. uncertainties of future taxes has caused some to adopt a watch¬
ful and waiting attitude toward the
a
Native
UNCERTAINTY MARKET .FACTOR
TAX
forty-seven of
SCHENLET DISTILLERS CORP., HEW YORK
a
or
less.
Employers must fill out a part of the workers' tax return, stating
the amount of'wages: earned during the year and the amount of
withholding tax paid; The employees must then fill in the names
and
number of dependents and'*
send: the form to the Bureau of total is automatically, deducted for
Internal
Revenue,
where the tax
of this, deductions
ilar nature may not be
cause
covered
for these purposes are more
by ; the
pay-as-you-go
plan; however, ff there has been
overpayment b£ that plan a re¬
fund will be sent.
also
be
by-the husband and wife if
The
Treasury Department
the
10%
new
the
old tax form
be filled out.
'
partnership in Arrow-
smith, Post & Welch, 115 Broad¬
way,
New
New York City, members of
York Stock Exchange, on
Sept. 1.
Mr; Wellington grad¬
uated from Harvard College and
Harvard
Business
School
and
started- his
the cotton
business
career
with,
goods firm of Welling-
,
ton,
Sears & Co., which was
founded by his grandfather, Wil¬
liam H. Wellington.
He has been
Be¬
of a sim¬
associated with the Central Han¬
listed on
over Bank and Trust Co. for the
form, but if deductions
charities and other expenses,.
computed and sent back
to the wage-earner in bill form.
This will include the amount not
will be
admitted to
than past
1040 may
'
Washington
advices also state that:
,
/
Associated
Press
seven years,
trust investments.
specializing in
Admission of Mr; Wellington to
partnership in the firm was pre¬
viously reported in the "Chron¬
icle" of Aug. 24.
may he
whose total in¬
come
in
1944
was
less
than
$5,000 interest. All other taxpayers will
their combined income is within
and
consisted
wholly of wages be required to make their returns
the range below $5,000.
The
Collector will work out shown on withholding receipts or on old-style forms, which also are
simplified in accordance
these returns by the use of a table, of such wages and not more than being
with the tax simplification law.
whereon 10% of the taxpayer's $100 of other wages,, dividends and.
'added that this new form may
used
The
simplified return
used by
any
one
THE COMMERCIAL & FINANCIAL CHRONICLE
890
Mew D. S.-Mexico
tion will have plenary powers to
commit the United States to vast
Treaty
expenditures.".
The
Threatens Private
UTILITY PREFERREDS
Thursday, August 31, 1944
Ownership
would be such
Of Border Utilities
By GEORGE WANDERS
ESTABLISHED 1879
Indisputable Power To A
Commission To Acquire, Construct And Operate Irriga¬
tion, Flood-Control, Hydro-Electric And Other Works
Public
Utility Securities
Electric Bond & Share
The 1943 report
of Electric Bond & Share (recently issued), to¬
gether with the balance sheet of June 30th," permit a re-appraisal of
the position of EBS common, in which there has been some increased
market interest recently.
The company
ferred stock at
a
had
up
to June 30th repurchased $33,895,500 pre¬
of about $74 a
cost of $25,122,794, or an average
share, compared with the presents
authorizes
the latest plan submitted to the
SEC, in which EBS indicated its
willingness to accept cash of $44,000,000 in exchange for its various
holdings in that system. While;the,
SEC has not yet rendered its de¬
difficulties at some later date.,.' * cision, this amount furnishes a
%The company's portfolio has not convenient
appraisal figure,- in
changed. much in the past year, preference, .to market values of
addi¬
fund
is used up—but in view of the
Commission's dislike for retiring
senior securities; at prices
over
par, the program might encounter
earmarking
of
>
and
of the
because
cised
control
the securities.
exer¬
by the SEC, will probably
substantially except
,as the result of SEC decisions. The
largest investment is in American
& Foreign Power, which controls
operating companies in six South
American countries, Cuba, Central
America, .Mexico,. and India, (the
.
amounts involved
smaller. The
Electric,
a new
fight to the bitter end in hearingsf
now
pending before the Senate' status of their companies will be
under the treaty, if ratified. *
Foreign Relations Committee.
For the document, asserts Mr.
No antagonism toward Mexico
is involved in this growing dis¬ Kenny, fully bears out ideas on
nationalization
expressed by Dr.
pute.
Questions raised by those
who
Charles A. Timm, Department
State assistant in the Division
girding to fight the treaty
entirely domestic, for
this remarkable and unique docu¬
are
almost
Foreign
and
American
Power1 &
cost about $280,000,000, principal¬
American & Foreign Power notes
of
Mexican Affairs.
italization
plans.
and offer
$50,000
existing irrigation, drain¬
age, flood control and power pro¬
jects in these river systems should
be nationalized and all such future
projects should be undertaken by
the
respective national govern¬
ments," Dr. Timm argued.
"Pri¬
vately owned utilities and irriga¬
tion
companies
should
be ex¬
The
Our
under.
for
treaty with Canada,
instance, ran for
brief period
a
after ratification in
1909, and then
was subject to termination on one
year's notice from either govern¬
But the treaty with
ment.
Mexico
would be perpetual until and un¬
less Mexico
acquiences in another
-
Specific objections are raised to
placing within the control of the
commission
that
matters
es¬
are
judicial
in
character,
to authorize either country
sentially
power
to
and
divert
not
water
use
be¬
longing entirely to such country,
and
added.
California
Officials of New York and other
Eastern
States
take
interest
beginning to
the proceed¬
ings, and in the Northwest a simi¬
lar awareness is spreading.
For
an
hint
a
in
are
in
thrown
was
Timm
recent
out-
State
Dr.
by
Depart¬
ment bulletin that the treaty may
be
a
taken
treaties
as
a
model
-
for
future
international
This raises the question
governing
streams.
"The
treaty,"
pending
its
say
opponents, "is an at-,
tempt to establish an agency with
perpetual and unprecedented ad¬
ministrative, judicial and regula¬
tory
with
powers
sional controls.
no
Congres¬
By the use of a
treaty as a vehicle, recall by Con¬
gress
of the powers
made
impossible.
delegated is
-
"During the next few years
treaties will be written.
With
the
Mexican
treaty as a
many
whether the New Deal intends to
fashion similar treaties with Can¬
Statement of Recorded Cost of Work Performed
and the
June 26,
S-;
New
Ship Construction
that
Representative
■
\
June 26,
1943
ward
to
end
the
June 28,
1943
$34,258,000
$61,134,000
$66,991,000
1,530,000
1,019,000
2,681,000
1,370,000
2,194,000
1,719,000
4,519,000
2,396,000
$34,857,000
$36,996,000
$68,334,000
$70,757,000
a—■'
'
=
■
=a
.
Gilbert J. Postley
&
Co.
,
I
i
.
,
- ■
By Order of the Board of Directors
R. L FLETCHER
BROADWAY, NEW YORK 6, N. Y.
'
Chicago
August 23, 1944
date of
against Ger¬
made this
meeting at which
a
Comptroller.
■;
Admiral
1945.
of
quoted as saying:
successful
Navy's
war
Irish
was
prosecution
of
in the Pacific is.
being handicapped by the failure
to obtain necessary ships, such as
troop carriers, refrigerating ships,
and other important parts of the
When
at
program."
a
House
White
news
reporter asked Presi¬
dent Roosevelt if he had any ideas'
about
;
be the
war
also
conference
Accessories and Other
c
to
Woodrum
at
shipbuilding
Hydraulic Turbines and
Work
1
the
Mr.
"The
"
*
Oct.
of
end
the
-
1944
of
ing in the Pacific to at least the
Twenty-six Weeks Ended
June 28,
f
■
Woodrum
Virginia, Chairman of the House
Post-War Military Committee, as¬
serted that the Army looks for¬
that the Navy expects to be fight¬
$31,133,000
■
to
Washington advices of the As¬
sociated Press reported on Aug. 25
Rear Admiral James H. Irish said
During the Thirteen Weeks
Thirteen Weeks Ended
Totals
Wire
European War Over By
Oct. I, Woodrum Says
statement
Twenty-six Weeks Ended June 26,1944 and June 28,1943
v
.@85
tendency toward perpetuation
a
many.
Conversions
Direct
from
setting up
perpetual power to construct
revenue-producing works and the
operation thereof and the rates to
be charged for the output.
altogether,
and
present
ownership, wherever- it exists, by
local governments should be re¬
placed by national ownership," he
Newport News
Shipbuilding and Dry Dock Company
remaining
England Gas & Electric 5s 1950
29
departure
treaties
cluded
Ship Repairs and
,
in
in
agreement.
Light
1944
.
another
"AH
(Subject to year-end audit, charges and adjustments)
.
Still
precedent
.
Taking Cuban Electric bonds at each case, and subordination ques¬
an arbitrary valuation of 75
and tions might enter into final recap¬
New
judicial review of any act, de¬
or
finding of the
tempting precedent, other agencies
free from judicial and Congres¬
ada
covering the St.. Lawrence sional control, and operating in
certain
terms. ^ The
Colorado
many other fields, may find their
River Board of California sprang and Columbia River systems.
Dr. Timm, as one of the authors way into our system of govern¬
early to defense of water and
There would be no limit
of the proposed Mexican treaty, ment.
property rights vested in com¬
munities of the Southwest. Execu¬ held it frankly in his study for the to the possibility of the extension
tives of privately-owned utility State Department bulletin to be of the idea.
"the most important of its kind in
"It behooves ail citizens inter¬
systems are wondering what the
the history of the, world,, both in ested in the
preservation of Amer¬
the range and scope of its provi¬ ican
institutions, and the checks,
itemsk' are a ismbll stake of about
sions and in its social and eco¬ balances and controls that have
$1,000,000 " in ? Commonwealth & nomic
significance.''
'
characterized the devolpment of
Southern,
marketable
system
i In effect, according to the oppo¬ our form
of
government,' par¬
bonds of some $9,000,000, and net
sition,
the
treaty
would"
make
ticularly the right of judicial re¬
current assets of $11,000,000. The
feasible vast internal projects "of
view, to scrutinize the pending
total figure of $228,000,000 would,
social and economic significance"
treaty and to do all that may
after .deducting preferred stocks
under the guise of an apparently
properly be done to defeat its
at par, leave an estimated equity
simole international boundary and ratification."
'
of $116,000,000 for the common or
water
arrangement. *
Moreover,
about $22 per share.
once the Senate ratified the docu¬
preferred
and
common
(about
ly representing cash paid into that
$5,000,000) might suffer shrink¬
company's treasury for its junior
age, of course, since the principal
stocks in the period 1923-30.
investment is in common stock in
own
of
.
...
":We
for
international
treaty.
No
provision is made in the document
type of interna¬
$26,000,000, seems rather
This figure is of course subject
ment, all further controls over ex¬
"solid". Also the $18,000,000 mar¬ to
the
reservations
indicated penditures and functions of the
ket value of National Power & above. Also
it is unlikely that the boundary and water commission
Light; common appears substan¬ company will completely liqui¬ would be removed from Congress
tial, unless the SEC should raise date, unless forced to by the SEC; and placed exclusively with the
subordination questions., at some the
management plans to diver¬ State Department, thus providing
later date; • National has retired
sify in industrial fields, retaining a unique quirk. '
*
all senior securities sq that the Ebasco
"The
Senate
of
the
United
Services, the management
common has a clear title to under¬
subsidiary, as a consulting agency. States will have no further con¬
lying equities. Electric Power & It also appears likely that foreign trol of such matters," Mr. Kenny
Light preferred and the common interests will be retained.
states.
"The United States sec(about $11,000,000 market value)
Share, remains under SEC
jurisdiction.
r
According to the latest annual
report, Electric Bond & Share's
-
breach
a
the
some
Bond &
&
are
stake in American Gas &
trol, the parent company, as a
sub-holding company of Electric
American
items
may
Shanghai property is now in Jap¬
anese hands). While these foreign
subsidiaries are beyond SEC con¬
investment
:
in the portfolio
raise some questions of even¬
tual
readjustment,
but
the
Other
not be altered
constitute
of
of the Meixcan agreement and the
commission to be set up there¬
State and local government offi¬
present SEC authoriza¬ ; huge arrears. The question of the
tion (as of July 30th) the com¬ eventual value of the EBS stake cials in the Southwest are de¬
in
American
&
Foreign
presents
pany can spend about $6,000,000
nouncing the treaty emphatically.
cash for additional purchases. So many angles, which must doubt¬ Robert W. Kenny, Attorney Gen¬
eral of California, has written a
long as the market price of the less await SEC clarification.
*
The investment in securities of brochure describing it in no un¬
two preferred stocks does not ad¬
tional cash when the present
contrary
signed with Mexico last Feb. 3 and submitted to the Senate a few
days thereafter, is described by some of its opponents as a fresh high
in New Deal dodges and subterfuges.
The opposition is prepared to
Under the
above''par, the company the United Gas system also present
proceed with its a number of problems, but these
program—assuming that the SEC have been somewhat clarified by
would
ap¬
necessary
because
international commissions is found
'*
vance
action
the
vote
commission.
ratification of
for the $6 at 100, with the preferred and
preferred and 92 for the $5. Due common stocks and warrants at ment proposes, quite incidentally,
to the substantial amount of cash the market, the total current value to set up vast regional authorities
held, (about $15,000,000 on June of the investment is estimated in within the United States covering
30th compared with over $25,000,- round
figures
at
$112,000,000. the streams of the Colorado River
The United
000 in the previous year), as well However, it appears likely that and the Rio Grande.
American & Foreign will be re¬ States section of an International
as the reduction in interest income
from American & Foreign Power capitalized
under SEC orders, Boundary and Water Commission
notes, the company's net income possibly in the coming year or so, would have indisputable power, to
has remained inadequate to cover and due to the large arrears on acquire, construct and operate ir¬
preferred dividends (the deficit the first and second preferred rigation, flood control, hydro-elec¬
for th©-12 months ended June 30th stocks,
the common stock and tric and other works at any point
being about $1,683,000). However, warrants (with market valuation within the United States on the
with an earned surplus of nearly of some $9,000,000) have dubious streams.
Boulder
Dam,
it
is
argued,
$60,000,000 and plenty of cash standing, and' it seems safer to
there seems no reason to antici¬ reduce the estimated total by that would pass from the control of
the
Department of the Interior
pate a cut in dividend payments, amount, leaving $103,000,000. Of
which have always been regularly this amount some $46,000,000 rep- to the new United States section
of
the
resents the investment in the sec¬
commission, for which rea¬
declared.,'
The outstanding preferred stock ond preferred stock, - of which son Secretary Harold L. Ickes is
numbered
among the opponents of
has now been reduced by repur¬ only about 15% is held by the
chases about 23%, to $111,670,000. public, and on Which" there are the treaty.
should be able to
to
propriations
tional treaty is springing up in our Southwestern States and is des'
tined to become an issue in the Presidential campaign.
The treaty,
are
price of 95 %
market
to make it sole
as
termination
On International Streams.
Determined opposition to
.
judge, jury and executioner of any
program
it elects Ao undertake
under the broad provisions of the
treaty.
The Congress would be
forced
Writer Views It As Giving
Paine, Webber, Jackson & Curtis
.
of the commission
powers
the
a
collapse
of
Germany,
the President refused to give any
of his ideas on the termination
the
war
most
of
against Germany, and said
other
predictions about the
end of the war
against Japan after
Germany falls is pure
speculation.;.
Volume
New
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4312
160
Commodity Trade
Group Organized
:
of
Association
National
The
i
891
Commodity Exchanges and Allied
Trades Inc. announced on Aug. 23
that it had been
organized "to de¬
extend com¬
the in¬
velop, improve and
"It has been
modity futures trading in
and consum¬
ers,
and for the welfare of the
American people."
of
terest
producers
We learn from
t
Associated Press
Maurice Mandeville was
President and J. A. Hig-
elected
Jr.,
dent.
Mr. Mandeville is President
of
the
Ex¬
Mercantile
Chicago
i; boy or your
Vice-Presi¬
Executive
gins,
the Board
"ll!l
of Managers in the
Is %
il
Coffee and Sugar Ex¬
New York
1
m ®
boy
a
friend of moderate business
to own
-A A
Cs
•»1
his
own
possible for
business
my
. .
single tax increase so long as I am
gin the Governor's office."
II
'
'
changes, and other persons or or¬
ganizations
representing
allied
trades, are eligible for member¬
ship in this association.
' i
Other officers named included
a
r
mi
change. Organizations connected
with commodity futures such as
Chambers
of
Commerce,
ex¬
.
GOOD GOVERNMENT IS GOOD
yX'. From public
statements made by
Governor Ellis Arnall
of Georgia
BUSINESS
the
Scott, Secretary of
Walter R.
also
"There will not be
change and Mr. Higgins a member
of
am
and little business. I want to make it
Chicago advices that at the same
meeting
charged that I am a friend of big business.
I admit it. I
City Board of Trade, First
Vice-President; Ody H. Lamborn,
President of the New York Coffee
Kansas
and
Sugar
Exchange,
Second
Vice-President, and S. J. Meyers,
Vice-President of Arcady Farms
Secretary-
Chicago,
Co.,
Milling
.
Treasurer.:: &i
*-j
..,..
•;. i ;i
Iceland's First Pres.
Visits
Washington
Presi¬
Iceland,
and his Foreign Minister, Vilhjalmur Thor, arrived in Washington
on
Aug. 24. He was honored at
a dinner in the White House and
spent the night as guest of the
President.
Although the Associ¬
ated Press report at that time gave
no hint of any diplomatic talks, at
Sveinn
first
Bjornsson,
the Republic of
dent of
press conference on Aug. 27,
Foreign Minister Thor was quoted
as saying:
,l '
a
of Iceland in¬
itself without
foreign interference, and that
Republic
"The
tended
any
he
to
was
govern
that American troops
sure
withdrawn
be
would
the
after
war."
"In
newly-
the
of
President
The
republic added:
formed;
agreement the United
pledged that immediately
the termination of the pres¬
the
States
upon
ent
such
-
all
forces
at once withdrawn,
leav¬
international
military
will be
emergency
arid
naval
Iceland and their
ing the people of
Government ' in
full
sovereign
control of their own territory. ;:
"I have never had any
doubt on
Ideal industrial sites are available in man/
know that the
agreement will be carried out to
this
point.
We
the letter. J
"We
•
NDER the
regret any such
therefore
implications claiming the neces¬
sity for the United States to ac¬
quire peacetime military bases in
Iceland. */ ;;
" H
- \
'
"I am glad that I can state that
no
such request has been pre¬
sented to the Icelandic Govern¬
ment, and I am
small, friendly
of the firm belief
Government has no
military
designs
upon
foreign
countries and no wish for terri¬
torial expansion."
These
ideas
are
contrary to
those of some diplomats in the
United States who believe that
this country should have
bases
throughout the world to halt any
further aggression by ambitious
able and broad-
visioned
Ellis
one
leadership of Governor
Arnall, Georgia has become
of the best
the nation.
governed states in
Good business princi¬
are being
ment. Finances
ples
applied to govern¬
are
in
a
sound
con¬
that the U. S.
military powers.
Bright Possibilities
Giant
Portland
Cement
is
possibilities, according
to a circular prepared by Lerner
&
Co., 10 Post Office Square,
Boston, Mass.
Copies of this cir¬
cular may be had from Lerner &
Co. upon request and also a cir¬
cular on Riverside Cement class A
which the firm believes is an out¬
teresting
standing cement stock with a
,
...
in
div¬
taxes.
Enlightened educational re¬
Far-sighted
forms have been effected.
programs
the state's
cultural
for the development of
huge industrial and agri¬
resources are
underway.
The
people of Georgia and their
government believe in and cooper¬
ate with business enterprise.
a
low-priced stock in an industry
with a bright future and offers in¬
idend arrearage.
dition. There has been no increase
Like her people, Georgia's
is
climate
pleasant the year 'round —con¬
tributing to lower production costs
and to better standards of living at
lower
costs
for
housing, fuel and
Plant the future
in Georgia where
plentiful supply of raw
materials, abundant soft water, na¬
tive-born, friendly, intelligent work¬
ers, splendid rail, highway and port
facilities, ample and dependable
there is
large industries are located. Here you will ..!
find
clothing.
a
electric power at rates
among
intel'igentfWilling, American-born,
English-speaking workers. These friend¬
ly people, together with the great post¬
war
pool of highly trained, skilled war
workers,
are
among
industrial assets,
Georgia's greatest
y
the
lowest in the nation.
Our staff of competent
engineers
has been at work for the past two
years surveying and
rate industrial data
cations in
compiling accu¬
on
the best lo¬
Georgia for specific in¬
facts
PLANT the Future in
dustries. We either have the
will get them for you—in con¬
fidence—without obligation.
or
Write Industrial
Development Division,
GEORGIA POWER COMPANY, Atlanta,Georgia
J
Georgia towns where no
GEORGIA
CENTER OF THE SOUTH
'THE COMMERCIAL & FINANCIAL CHRONICLE
892
Thursday, August 31,' 1944
Guaranty Trust Co. Predicts
Monetary Fund Program Failure;
PRIMARY MARKETS IN
BANK and INSURANCE STOCKS
Royal Bank of Scotland
Incorporated by Royal Charter 1727
HEAD
It Criticizes Absence Of Control
Ry Management Over Internal Monetary Policies
In Its Monthly Survey
Huff, Geyer & Hecht
New York
5
Boston
V
Wall Street
67
NY 1-2875
-
ST,
■■■'V'
LOUIS,
LOS
'7
-'>7'
"
FRANCISCO
SEATTLE
AND
TELEPHONES TO
chaos
from^
which the entire world might suf¬
fer for years to come."
Enterprise
7008
Enterprise 7008
Public
comment
the
on
arti¬
the Inters
national Monetary Fund and the
cles of agreement for
Bank and Insurance Stocks
Bank
International
Week—Insurance Slocks
struction
drawn
By E. A. VAN DEUSEN
Development,
and
up
Recon¬
for
as
Bretton Woods
at the
conference last month," comments
Most investors in fire insurance stocks are aware
of the fact that
to fire insurance
is, of far greater importance
Investment income
into
relationships
PORTLAND,
PROVIDENCE,
-
,
CG-105
NEW YORK, BOSTON. CHICAGO,
SAN
ANGELES,
Enterprise? 6011
HARTFORD,
-FRaUklln 7535
•
CONNECTING:
WIRE 'SYSTEM
29 issue of "The Guaranty Survey," published by the
Guaranty Trust Company of New York, the International Monetary
Fund proposed by the Bretton Woods Conference is assailed as "an
attempt to enforce exchange stability without striking at the causes
of instability," and the prediction is made that if the project is estab¬
lished and then fails, it "could easily throw international currency;
La Salle Street
135 S.
Squaw
companies than are underwriting profits. In the first place, invest¬
income is relatively steady, while underwriting profits are
ment
a
marked
lack of confidence in the
prospect
the
of
"Survey",
30 representative fire
companies during the
of
insurance
Insurance
Stocks
In other words, net investment
in¬
come represented
72.5% of total
net operating profits, while net
underwriting profits represented
only 27.5%.
Occasionaly, how¬
ever, net underwriting profits will
■Inquiries invited in all
loans
Unlisted Issues
for
struction
member
Laird, Bisseil & Meeds
exceed net investment income, as
in 1935 when total net underwrit¬
New York
-Members
Stock
120 BROADWAY, NEW
*
•'
:.
>
-"V
'
'•••:
—.12 -31-43
*■-. ■7'
£
Company— " *
*
^
i v -;■
-—Market 8-24-44
f
Liq. Value
Invested
V
.-:v
their
could
be
per¬
1.13
1.50
1.35
1.65
2.39
as
per $
Price-
of Market
Assets per $
of Market
$1.10
$1.44
$58.53
$76.58
89.45
118.35
26.71
32.01
31.89
Equitable Assur.-—
Bankers & Shippers Ins- 119.22
46.33
531/4
7
79
•:
v
23-n
,
7
■
>;
'
Am,
Boston
Insurance
Continental
Fid.-Phen.
Fire
47.81
Fire Ins.—
50.80
Association
Fireman's
Franklin Fire
Glens Falls
Great
V
55.76
V:
114.78
————^
24.47
0.93
41.53
48.13
45
34.12
30.44
29%
46.01
102.86
34.70
Co. of North Amer.
83.70
National Fire Insurance
83.17
1.17
100.82
601/2
1.37
1.67
1.40
2.01
Insurance-
27.21
24.17
Pacific Fire Insurance- 148.03
99.39
104.87
Prov.
Washington Ins,—
40.91
49.77
St. Paul F'. &.M.——in¬
57.71
64.78
45.18
security Insurance
Springfield F. & M.— 137.94
174.87
united States Fire Ins.— ,58.81
64.46
1.67
1.05
1.27
1.24
1.50
0.97
^;
7
86%
361/H
74%
59.49
.
*
,,/y'
:■
51
v:"!-V
1.89
1.15
1.21
1.13
1.38
1.23
.7
0.87
V
1.62
1.11
1.41
71.15
1.26
$1.13
$1.42
rv
7
1.09
1.43
0.77
•
36%
124
W—
—
:
.17
1.16
1.20
1031%
'
%■>
;
.
0,
It will be noted that in all cases, on asset values on December 31,
that of Great American, 1943, which were some 7% or 8%
invested
assets
per
^hare are below probable current values.
So far as individual stocks are
greater
than
liquidating
value
per. share. Great American's in¬ concerned,
it will be observed
v
except
assets
are
10%
than
less
that
there
are
wide
differences.
those
of For
example,
with
American
Phoenix Insurance are 6% greater Equitable $2.39 of invested assets
than
liquidating
value,
while can be bought for one dollar,
American
Equitable shows the while only $0.87 of invested as¬
widest spread with invested as¬ sets can be bought with St. Paul
sets 45% greater than liquidating Fire & Marine.
Does this signify
value. The average percent spread that
American
Equitable
is
for the 30 companies is 24%.
a more desirable investment than
liquidating
B&sed
value,
the
on
prices of
these
asked
market
30
Stocks
as
of
August 24th, one dollar will pur¬
chase $1.13 of liquidating value
and $1.42 of invested assets. Since
the
investment
insurance;
of
expense
companies,
fire
averages
approximately 9% of investment
income, it would appear, there¬
fore,* that the average dollar in¬
vested to-day in fire insurance
stocks will provide the investor
with
the
mately
equivalent of approxi¬
$1.30
of
invested
assets
after management expense, based
St. Paul? Not
an
to
come.
unbroken record of
only 11
years
able.
Currently,
yield
of
St.
un¬
for American Equit¬
the
dividend
Paul is under 3%,
while that of American Equitable
is slightly above 5%.
St. Paul is
conservative
necessarily, in fact
be true, depend¬
ental, Fidelity-Phenix, Fireman's
ing on what degree of conserva¬
Fund, Franklin, Glens Falls, Great
tism or speculation the investor
American, Hartford,: Home, In¬
requires.1
American
Equitable, surance of N.
America, etc., but a
although
showing a fair rec¬
relatively low appraisal to others,
ord
of
net
investment
income
such
as:
American
Equitable,
over
the
years,
has
a
very
Bankers & Shippers, Fire Associ¬
spotty underwriting record, regis¬
ation, Hanover, National, National
tering underwriting losses in five
Union, New Brunswick, Pacific
years out of the past six, with the
Fire, etc. The, first group is ap¬
result that
total net operating
praised at an average of $0.87 per
profits failed to cover dividends $1.00 of in vested *
assets, and- the
in 1943, 1941 and 1939. St. Paul
second group at $0.54 per $1.00 of
Fire & Marine, on the other
hand, invested assets.
the rfeverse may
that
or
such
the .Fund
borrow
elsewhere; or the
Fund could require the member
to sell its currency for gold. These
provisions are of special interest
to the United States, since it is
generally believed that the dollar
is the currency that is most likely
currency
to become
scarce.
The right of a member to buy
another member's currency would
be subject to the condition that
the purchase would not cause the
Fund's holdings of the purchaser's
currency
to exceed twice its quota
or
to increase by, more
of
its
than 25%
12 months. This
in
quota
at
is
settlements
bers
could
discretion
made
be
of
the
for
an¬
whereby
Colony and
Office:
:7;'7/-v/:\
la
Uganda
26, Bishopsgate,
—
London, E. C.
Branches
In
India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar
.
Subscribed Capital
Paid-Up Capital
£4,000,000
Reserve
£2,200,000
The
£2,000,000
Fund
Bank
conducts
every description
banking and exchange business
Trusteeships
and
of
Executorships
also undertaken
would
much
10%
as
without
the
balance their
their financial houses in order can
the exchange values of their cur¬
rencies
the member could impose a time
limit
the
Of
Plan
'
:
been
the
criticism
permanently
main¬
such policies are
followed, no international fund is
required to keep exchange rates
at parity. When they are not fol¬
lowed, any attempt to enforce an
arbitrary and unreal stability is
represents
■■■■■■■
not only futile
The
but dangerous.
quickest and
j
effec¬
most
tive way to bring about exchange
stability
would
in
the
for
be
post-war
period
the
principal com¬
mercial nations to replace, their
currencies on the gold standard at
the
earliest
possible ; moment.
Some of the smaller nations could
immediately take similar -action.
"tie"
could
their
curren¬
cies to the gold-standard curren¬
cies until they had had time to
build up their gold reserves. The
would
process
of financial
countries,
States.
-
require
reform
including
But
the
measures
in almost
the
need
all
United
"
for
such
reform cannot be escaped by the
creation of elaborate international
mechanisms.
.,
Profit Possibilities
Debentures of Associated Gas &
Electric
in
'Corporation
Gas
ciated
hold
&
and
Asso¬
Electric Company
.
interesting prof it possibilities
of various developments
by
the
Reorganization
view
offered
Plan
submitted
and
approved
and
Exchange
by the Trustees
by the Securities
Commission, ' ac¬
cording to a study of the .situation
prepared by Newburger & Hano,
1419 Walnut St., Philadelphia,
Pav,
members
of
Philadelphia
the
New
Stock
York
and
Exchanges.
Copies of this study may be had
Newburger & Hano on re¬
quest.
;.,-77./ :777-.
from
New York Stock Exchange
t
that has
.
Weekly Firm Changes
on
The New York Stock Exchange
the view that it" has announced the
following firift
attempt to enforce
exchange stability without strik¬
ing at the causes of instability.
an
specifically,
ment of
the
the
manage¬
Fund would be ex¬
pected to hold the exchange val¬
ues
When
brought against the agree¬
ment is based
More
be
tained.
proval of the Fund. A second pro¬
of
levels, follow
ap¬
posed 10% change would be sub¬
ject to the Fund's approval; but
Most
budgets, hold their
tariffs at moderate
sound monetary and credit prac¬
tices at home, and otherwise keep
Others
mem¬
of 72 hours on the Fund for
investment, while*
a declaration of its attitude. Still
American
Equitable
must
be
further proposed changes in pari¬
classed as speculative.
•
ties would not be subject to this
It would be possible and inter¬
time limit. The Fund would be
esting to present other compar¬
obliged to concur in any proposed
ison's in addition to this one made
change if satisfied that the change
between the two extremes on the
was necessary to correct a "fun¬
list, but space does not perfnit. damental
disequilibrium;" and it
Generally speaking, the market could not
object to a proposed
recognizes the relative degrees of
change because of the member's
risk between different stocks and
domestic social or political poli¬
appraises them accordingly.
It cies, even
though such policies
will be observed fpr example, that
were responsible for the disequilthe market gives a relatively high
ibrium.
appraisal to some of the choice
The Outstanding Weakness
old-line stocks, such as; Contin¬
a
vested
a
Fund
to the
currency
repurchase from the
Fund specified portions of any in¬
derwriting profits for many years,
creases
in
the
Fund's holdings of
in addition to an excellent record
currencies, and
of net investment income, with their respective
the result that net operating prof¬ for charges to be paid by members
its have covered dividends by a on the Fund's holdings of their
in
excess
of
their
handsome margin for a long per¬ currencies
iod of time; furthermore, it has quotas.,
Any member could change the
paid dividends without interrup¬
tion for 72 years, compared with par value of its currency by. as
shows
1.03
92
.
into
lend its
member
nual
1.57
47%
247/a
>196.08
'
Phoenix Insurance
Ayerage
30%
;7
years
Head
Government
the
to
Kenya
of
however,
0.96
60.49
relationships
Bankers
pose
the
871/4
138.14
contemplated,
international
of INDIA. LIMITED
or
Fund. Provision
101-.79
50.42
now
throw
NATIONAL BANK
exchange
the
waived
1.14
174
keep
condition,
-
1.03
/;
used 7 to
might suffer for
0.95
v
as
easily
currency
the
1.07
1.15
.
could
it must under
Bank, Ltd.
contribute
close to their respective par¬
ities. This would • be done by al¬
at
Deacon's
Glyn Mills * Co.
rates between member currencies
chaos from which the entire world
0.90
"
program
1.29
•
be
1.22
30 Vu
36.37
50.01
0.92
i
believe
we
Associated Banks:
Williams
smaller amounts. The fund would
1.78
291/4
349.38
114.47 V
\
:V
7v
IOOI/4
243.76
Hampshire Fire Ins.
Northern Insurance —
North River
>
;
1.22
1.04
,
26%
28.73
New
1.17
34.00
90.16
Ins.
1.90
1.39
1.01
1.32
33.35
New Brunswick Fire
1.41
1.12
0.90
Home Insurance
Nat'l Union Fire Ins.—
49
,
94
Hartford Fire Insurance
Ins.
v
-
K
66
Insurance
----- —
47%
60:02
117.68
84.76
Ins.;
Fire
-
—
610
848.73
87.06
-
American. Ins.-—
Hanover
;
Ins.—J
Fund
84
160.68
682.98
Insurance—
19%
The
1.12
Asked/
Per Share
Ins.
effects.
plan for the
monetary fund, oh the other hand,
aims at nothing less than world¬
wide
exchange
stabilization, /< a
project which, if it should fail,
Invested Assets
Aetna Insurance
Alliance
*
A
Liq. Value
Agricultural Ins.
Am.
v
would
limitations on the freedom
exchange operations in the
scarce currency. The Fund could
also propose to the member whose
currency
was
scarce
that the
such
bank
Per Share
V
•
.
••
States
of
Whether
formed better by an international
YORK 6, N. Y.
Telephone: BArclay 7-8500
■
"Joint
latter would be authorized to im¬
,
■V'
the
recon¬
development
functions
credit
Exchange
and
countries.
£115,681,681
considerably
are
than
billion and other countries much
industrial
64 New Bond Street, W. I
They provide for a
billion, of which the
respect.
fund of $8.8
United
Charing Cross, S. W. / Z
Burlington Gardens, W, /
TOTAL ASSETS
of
the
49
Statement b.y Experts" made pub¬
lic in April, but do not differ from
the earlier outline in any essen¬
tial
Bishopsgale, E. C. 2
at
on
'
;
Woods
detailed
more
upon
administration
organized and financed by
governments
than
by
private
Bell Teletype—NY 1-1248-49
agencies operating in accordance
(L.A. Glbbs, Manager Trading Department)
with established credit practices
income.
is very doubtful. The principal
In view of the importance of
reason
the .accompanying danger, however, would be that of
investment income it is of inter¬ this
unwise loans resulting in losses,
It is also of
est; therefore, when buying fire table is presented.
which, though possibly serious,
insurance stocks, to take a look at interest to compare invested as¬
would be spread
over
a
wide
the invested assets of a company sets per share with liquidating
financial area and hence would
per share of capital stock, and for value per share.
presumably pot be disastrous in
jv
ing prof its for the 30 companies
aggregated $35,563,000 compared
with $32,288,000 of net investment
Bretton
agreed
dangerous in its possibilities than
the proposal for the establishment lowing members to buy the cur¬
of the bank. The latter purports rencies of other members by giv¬
to be nothing more than it is—a
ing their own currencies in ex¬
plan to supplement private credit change. '" If a certain currency
agencies in the international lend¬ should become scarce, the Fund
ing field by making, participating would apportion the supply of that
in,
or
guaranteeing
long-term currency among members, and the
Bank and
past 17 years amounted to $676,490,000 compared with $256,209,000 for net underwriting profits.
articles
financial affairs
^characteristically erratic; in the second place, investment income ex¬ any such basis. This is more no¬
ceeds underwriting profits by a substantial margin over a period of ticeably true of the plan for the
fund, which is more ambitious in
years.
For example, the aggre-®
—
'
its aims and accordingly more
gate net investment income of a
group
The
3
8 West Smithfield, E. C. I
„■
,
$2.75 billion, the United Kingdom
$1.3 billion, the Soviet Union $1.2
successful
international
shows
;
Main Features of the Program
throughout Scotland
LONDON OFFICES:
In the Aug.
Chicago 3
9
Office
HUBbard 0650
>8-0713
WHitehall
PRIVATE
Post
10
V
OFFICE—Edinburgh
Br arte he t
of members' currencies at
or
close to parity but would have no
control over the internal policies
affecting the true values of those
currencies.
Only
when
nations
changes:
Alexander M. Main retires from
partnership in Frazier Jelke &
Co., New York City, effective to¬
day.
'
John
R.
Meaney retires from
in Miller & Dodge,
New York City, as of today.
partnership
C.
N.
Edge & Co. dissolves
of today.
as
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4312
160
than to all of Europe by
Bnieanaacy Vs. Free Enterprise
(Continued from first page)
•remarks to attest to my
very
great and know that
sincere admiration of people
who create finances that I couldn't
as
in
tion
the
are
interested at the
na¬
of
the
American dollars have
been the
working material out of
fully advised
to the status Of the various bills
in which you are
this
course
last war.
beeri
has
which
you
entire
sands
of
ships
and
the
made
Canadian Securities
thou¬
and tanks
millions of guns
planes
and
and
Industrial
Government
Municipal
bombs and shells.
Even after being present time, especially H. R. 1502.
To produce those dollars in the
seeing some of the I think, we will get it up in Sep¬ form of
working capital has been
gold diggings up there I still won- tember, and will have no great dif¬ the
magnificent accomplishment
<der whether there is that much ficulty. I think that we will pass
believe existed.
,
893
Public Utility
•
Railroad
•in Alaska and
-to
be
know
dug
it
of
I
it.
Whether
fellows that will
who will dig up
in
September
anywhere,
up
is you
and
or
not
or
we
'get it up
in October or just when,
-the support of the economic struc¬ of /course depends upon the gen¬
eral
situation
in Congress.
Even
ture in the future.
/
•be
the
fellows
last,
securities business
the
is
or
this
Of
done adequately and in
being
grand Style.
nitude and
even
more
-v.
Street, New York 5
Direct Private Wires to Toronto & Montreal
your
-
.
•
a
detailed
;ing right- down midstream and
.eventually the young lad, looking things.
I
much of
a
discussion
of
those
simply pass off that
remark about the legis¬
!closely,vsaid he saw some-:
lation pending.
thing on'top of that log.
Today the burden on the finan¬
The father examined it and said,
tt
.
<
14 Wall
Y
difficult of
though it takes us a little longer
achievement. Tomorrow's job, the
problems. - Perhaps some of the to get it up and out, I do feel job of post-war finance, is to pro¬
bills that I have offered in Con- truly confident that that bill will
vide the means of conversion, to
become a law before the end of
-gress, and which are now under
give birth to new business, big
•active consideration, are indicative this term of Congress.
business and little business.
I want to express my very sin¬
-of some of my thinking on se¬
Our problem will be visualized
curities and investments. I do have cere and heartfelt appreciation to in a
ready look at what handi¬
some
inkling of your problem. you as an industry for the splen¬ caps and impediments there are in
'Perhaps if I don't say anything did work that you have done in the way of such a course; sound
else this evening, I can illustrate bringing about this situation.
public finance has no stronger leg
The Congress likes all the in¬
that to you in a brief story of
to stand on than local municipali¬
formation you men informed in
what I think is your problem.
;
ties.
Free enterprise in my judg¬
.1 want to say to you, though, the investment business can give ment is the
inseparable Siamese
Most
of you have been
that your problem is no different -them.
twin
of
free
and
unrestrained
from
my
problem, speaking "in •thorough, I know, because men and
independent,
unregimented
have
come to me looking into the
•terms of individual Americans in
finance.
' •1■
separate and different occupations subject. I know that you have
The removal of all restraining
been
effective
at
home, with ac¬
in the many walks of life; that
handicapping r e g u 1 a t i o n s are
your problem is no different from quainting your Congressmen as to musts for our economic survival
what
the
facts
really
are
and
what
.the problem of the men that you
on the basis of a free economy.
meet on
the streets throughout the need is to work the thing out.
You can't legislate money. You
I want to compliment you as an
•America; that your problem is the
can't legislate or regulate a finan¬
organization
for
your
very
effec¬
problem of all America today if
cial- prosperity.
If you could
tive work in that direction, and
; you
are an American that be¬
make money by simply printing a
I
think
that
in
doing
this
thing
lieves in the American way of life,
piece of paper that says that this
and if you think that the old Con¬ you will not only be doing some¬
paper is money; if you could cre¬
stitution written a hundred and thing that will help you municipal ate a sound finance on that basis—
dealers,
but
it
is
highly
important
fifty years ago was written with
well, let's see if you couldY
.wisdom and chartered the correct as a testing ground for legislation
Suppose you saw a piece of pa¬
that affects the corporate invest¬
path for a course of government.
per that said, "I, Julius Caesar,"
:t
There was said to be a little boy ment business and all phases of in
Congress
assembled, if you
national
economic life of
with his father fishing in a stream the
please, declare this paper to be
America.
near Washington called the Potomoney.
What
value would
it
I;am not- interested in it "myself
mac River.
They saw a log comhave?
Suppose you saw a piece
in any personal way, in the sense
,ing down the Stream, and with a
of gold from the Caesarian era.
of affecting me as an individual.
pair of field glasses they detected
One thing that American govern¬
•that it was a log, that it was com- As I say, I don't want to go into
recognition of
Incorporated
The financial job of
tomorrow will be similar in mag¬
.
I have some
Wood, Gundy & Co.
The financial job of today
nation.
the "first or the
cial institutions of the world, and
ment must learn is. that you can¬
create
not
legislate
money
sound
a
by
order
economy.
nor
If the
American dollar is not to turn to
ashes in the pocket of
and ' the
.
orphan;
if
Canadian ^Securities
By BRUCE WILLIAMS
have been
Doubts
recently expressed
'
.
to Canada's ability to
as
hold her wartime economic gains,
This pessimistic
especially in the industrial field.
outlook, however, does not seem to be supported by
the facts of the
case.
•
'
place
The tremendous industrial development which has taken
/
during the
war,
has actually served to fill a gap in the Dominion
Canada's post-war in-^
problem, therefore, can¬
compared with that of the
economy.
dustrial
not be
older
industrial
The Canadian
new
and have
modern
countries.
war
drawing
are
of
sources
CANADIAN BONDS
on
material
raw
Canada
supplies,
are
Also, whereas
the older countries
depleted
factories
adopted the best of
methods.
GOVERNMENT
barely
has
scratched the surface of her vast
natural
Not
PROVINCIAL
sources.
only
factories
the Dominion's
are
new,
tries- in
but
which
the
Canada
MUNICIPAL
indus¬
is
best
CORPORATION
fitted to specialize are also com¬
paratively-new,
enterprises
ments
tion
in
and
metals
And
in
the
modern
develop¬
covering
electronics
and avia¬
of
use
light
and plastics will play
CANADIAN STOCKS
a
large part in the post-war era.
Another
popular misconception
owing to the severity of
climate, only a nar¬
belt along our northern bor¬
is. that
the Canadian
row
A. E. AMES & CO.
der is suitable for human habita¬
INCORPORATED
the widow tion. Nothing is further from the
the United truth. Y Since wartime exigencies
"Why, yes; it's a dead limb stickStates Government" bond is not and mineral discoveries have led
especially this nation is of magni¬ to become a worthless
ing up -on top of'it.'" '
promise in to greater penetration of the Ca¬
tude beyond the probable compre¬
' "A little later the boy said, "I
the hands of old age, then the nadian
Northland, it has been
hension of any of us.
The
prob¬
-see
some
activity on that log.
shackles
of
useless
regulations found that normal activity can be
lems of financial readjustment and
-Evidently
there's
life,
there's
must be removed. The impediment carried on all the year round in
economic advancement that must
of worthless
red tape must be the furthermost reaches of the
..movement there."
come
in the world of tomorrow
Russian
cleared from our path,, anjd the Arctic.
experience in
;
The father took the glasses and
are such as to tax all the world's
looked very closely and said, "Yes,
twisting cords of strangulation in Siberia also confirms that cli¬
.those are ants, thousands of ants, wisdom, and try the courage of the form of arbitrary, willful and matic rigors are not an insuper¬
all of us in America and especially
whimsical bureaucrats must be set able barrier to the northward push
; hundreds
of thousands of ants.
the financial world.;
of civilization.
That log is alive with ants."
aside.
Today
the
United
States
is
The boy looked the thing oVer
Our task today has bteen a chal¬
Thus
in
the post-war period
and said,
"Well, they all seem spending solely on our war effort lenge and it has been well met. Canada's great Northern empire
92 billion dollars a year, or near
Our
task
tomorrow
is
evident, especially in the Northwest will
;very busy," they act like they have
300 million
dollars a day.
The
a specific job to do."
and
is
soluble to the hand of offer an irresistible challenge to
•«'
The dad said, "Yes, every ant on ticker tape of this war cost hits American ingenuity unhampered her demobilized
youth and help
off
200
thousand dollars every
that log thinks he is guiding and
and unrestrained.
to solve the Dominion's unemploy¬
single
moment
through
every
Now \ye look down the financial ment problem.
.directing it."
Furthermore, just
ceaseless, sleepless hour of every road of tomorrow and know what
as
the success of the Canadian
Now, the problem of all of us
night and day.
we
have to do. You men in the wartime
.amounts to this: In all the bugovernmental
controls
It has been men like you in
investment business can take any has been unmatched
elsewhere,
.reaus of government we have gotthe securities industry who have
locality in the nation and can de¬ the present intensive official pre¬
■ten to the point that there are
achieved this almost unbelievable
iover 5 million ants on that log result of organizing the structure cide within reasonable estimate parations for the post-war period
the amount of money that must appear to head towards the pre¬
that we're -all tied to, and every
and
accumulating the financial
be raised to
reconvert industry servation of this enviable record.
one of them thinks that he is guid¬
backing necessary to answer with
there, to stimulate new business.
ing the log and steering its course.
Among current development the
payments each call on the ticker
All of that path is clear; but can
New Brunswick election results
Everyone of them is trying to do
tape of cost.
it according to his own viewpoint
you today go to any man who has were the principal item of inter¬
:y I salute you for the job that 100 thousand dollars and get him
'.of where it is supposed to go.
est."^'Once more, as previously
you have done today in this grave interested to use it as capital in
;
I am not going to discuss with
mentioned, the pattern that has
hour and in this nation's war ef¬ a new
enterprise that might be as been followed in other recent pro¬
.you H. R. 1502.
The purpose of fort.
productive as the origin of the vincial elections again was ' in
;that measure, I am sure, you all
I have just returned from Alas¬ airplane, or before that the origin evidence.
The
best
organized
;not only are fully aware of, but
ka. Looking up from the Diamede of the railroads, or any other en¬
.are
in accord with. "J may say
party
provincialiy has consist
TWO WALL STREET
•
•
NEW YORK 5,
N. Y.
.
.
NY-1-1045
RECTOR 2-7231
party that according to casual ob¬
servers
in this country and the
financial
community in Canada
was on
the eve of sweeping the
most
this
In
Liberals
C.
C.
Dominion—the
case
the
seats,
the
Conservatives
12,
36
gained
Progressive
F.
recent
and although the C. C. F. placed
candidates
41
one
was
the
in
field,
not
elected.
,
.
...
Another
notable
event
of
the.
past week was the news that thes
Steep Rock Iron Mines in North¬
western Ontario have commenced
production.
It is estimated that
300,000 to 500,000 tons will be pro¬
duced during the balance of this
year,
1,000,000 tons next year, and
thereafter 2,000,000 tons annually.
Thus to her already vast treasure
house
of
exportable
metals
and
minerals, Canada aids the invalu¬
able basic
metal iron.
With regard to
the market for
the past week, there is again little
to record.
As previously stated,
attempt tq change Island, out in the Bering Sea, you terprise that has been the back¬ tently gained the day and the
technical
structure
has
know you're standing in the same bone of an economic development clear fact emergess that, where the
view. It.
all over the world?
Will he ven¬ the Canadian electorate has an al¬ strengthened considerably. Heavy
.is an attempt -to clarify the law spot and in a single moment can
look at two hours, two days and ture his capital?
(Continued on page 895)
ternative choice, it
ignores the
so
that even a Harvard lawyer
You know, there was a preacher
two continents.
And as you look
will understand.
in Oklahoma.
He was a
into the sky each half-hour one down
I think you know the status of
can see a wave of planes, like a
Baptist preacher.
He got along
the bill, and that though it has
flock of geese, going over from fine for a little while and then
«taken, time, I am confident of its
Nome, Al aska, to Russian Siberia. strife broke out in the congrega¬
&
-passage.- Changes that of necessity
Behind each plane is a great in¬ tion and pretty soon the church
must come, not only in the securi¬
64
WALL
was all split up and they moved
STREET,
NEW
YORK 5
dustrial organization, buttressed,
ties and exchange legislation that
and dependent on sound financ¬ him to another congregation. Then
is on the statute books, but the
WHitehall
3
-1874
the
same
thing
would happen
ing. It takes one ton of gasoline
changes that must come in the ad¬
again, and they'd move him again,
ministration of that legislation so per hour to keep a Flying Fort¬
and it happened again.
Finally
ress in the air, and if you translate
-that there can be no question as
that gasoline 4nto the dollars it they wouldn't assign him a pas¬
to whether or not the letter of the
.that it is not an
the law according to my
-
Taylor, Deale
Company
YYYYY?:' Y
law and intent
.limiting
'jurisdiction.
-
I
is
of
of Congress is the
factor on
know
administrative
'
,'
that
you
work to be done
these
those
bills
general
realize there
ahead on all
represents you can visualize thq
work of the financial organization
torate.
maintain a financial
structure that, won't break down.
skirts
and
own.
He
of America to
More
North
supplies were shipped to
alone, in that one
Africa
that
accomplish
objectives, and I particular phase of
our war
effort,
-
was
and
.
moved
he
But
no
built
out to
the out¬
a /church
of his
got along fine.
There
strife in the congregation,
the
congregation
grew
(Continued on page 896)
and
canadian securities
Government
♦
Provincial
•
Municipal
♦
Corporate
THE COMMERCIAL &
894
Let
The
Price Control During
Period That Lies Ahead
face upj under authority of the Price Conproblems, that we see trol and Stabilization Acts. I think
them clearly and think straight I it fair to give the stabilization
in preparing to solve them. What agencies, including my own, credit
we are planning for
is our eco- for controls that have stuck pretty
nomic future, no less. This goes close to plain common sense sofor the whole broad task we facej lutions of some extremely cornin reconverting from an economy plex and vital problems.
The job that we in OPA have
of war to one of peace and it cer¬
these
tainly goes for the problems that
arise: ta the particular field of
r
the period
price control during
that lies ahead.
at the outset that I
confident of the outcome. The
Let
am
me
say
problems of reconversion will be
tough, but the problems of war¬
time have been tough, too, and we
have
licked those.. The record
evidence
that has been rung up is
people we have what it
that as a
takes to manage our
economic af¬
of stress.
fairs in time
extraor¬
That record stands up
dinarily well. Consider that since
spring 1942, when price control
authorized by the Price Control
general effect, in¬
risen by less
than 3% and the cost of living by
Act went into
dustrial prices have
about 9%.
These are index num¬
bers, general averages, but they
summarize the movements of lit¬
millions of prices. Many,
prices have been held to
lesser rises than these.
erally
many
even
Prices of steel
plates, for exam¬
ple, which at their peak in the
last
to 7 times their pre¬
war rose
war
level, have been firmly held
this time right where they were
in 1941. And in the cost of living,
here that I
do a war¬
to Washington to
time
job.
is
and has
no
170%
was
from 1939 and
running 3^2
billion
more
up
than in the peak year
mistake
again
of
supposing
economic impact of war
ends when the
will
Industrial
show the
average rents have been stabilized
same thing—all time highs in in¬
now for 25 months with scarcely
dustry after industry. All things
a flicker in the index.
That record, of price stability considered, I'm willing to rest on
has been rung up by the Ameri¬ the record as it stands. It think it's
a
pretty good one.
And it pro¬
can people during a period of un¬
vides a. favorable omen of suc¬
believably intense economic pres¬
sure.
In my opinion it fully de¬ cess in the period ahead.
I don't think we should forget
serves to rank with the remark
1919.-
wages
devoted only a quarter
we
total production to war.
of
war
we
have reached
one-half
nearly
of
In
level
a
vastly
a
output.
In the last war
a
single
industry was
converted to war produc¬
In this war all our heavy
greater
hardly
fully
tion.
industries have been converted.
'
the
There
which
and
the
at
time
same
can
be
no
question—the
are
fair to both buyer and seller.
shooting stops. The too is going to stand us
when the OPA stead in the months ahead.
of
this
of
This
in good
1
come
effort
our
requirement
control, in my pansion of essential production.
wartime measure As the record amply demon¬
a
regulations can be torn up. But
we mustn't tear them up for con¬
fetti the minute the whistles and
sirens start to blow and we all get
into the streets to celebrate the
German collapse.
Now in saying this I'm not say¬
done could have been a better
ing anything new. Most people
job.
No one will quarrel with remember what happened after
that. But bear in mind two things.
the last war. Most people recog¬
It has been a perfectly tremen¬
nize that we can't pull out of a
dous job and it had to be done
war economy
overnight. We all
from scratch. We have had to set
know what happens when a small
literally millions of prices. We
boy pulls a tightly wound main¬
have had to establish rents for
spring out of a clock. But we need
14 tz million dwelling units. And
to keep reminding ourselves of
for a period of a year, we were
these hard facts. A page of his¬
having to ration one commodity
tory, someone once said, is worth
after another, and each one before
a 5-foot shelf of logic.
we licked the problem of ration¬
We are determined to avoid a
ing the last. And except for the
repetition of what happened last
experience gained in England and
time. But in tackling the problem
Canada, no one in America knew
let us recognize that the job this
the first thing about any of these
time is far bigger and more diffi¬
jobs. It was a question of taking
cult than the one we faced at the
on
a
job, doing what seemed to
close of the last war, the one that
make
sense,
and then making
licked
us.
Just
consider — last
changes where experience showed
time, with all our straining, we
they were needed.
increased industrial production by
What is more, this record has
only 25% and farm production by
been achieved without damage to
only 5%.
any economic group. Corporation
In this war we have more than
profits in 1943, even after pay¬
doubled
industrial
production,
ment of high wartime taxes, ex¬
bringing it up 120%, and farm
ceeded net profits
in the peak
production has expanded 21%, or
year
1929 and were more than
4 times as much as in the last war.
double net profits of 1939. Farm
Last time at the peak of the war
operators'
income
net
the
to
statute that we facilitate the ex¬
place in an economy strates, we know how to establish
But we dare not make prices which stimulate production
of peace.
time
fect
Thursday, August 31, 1944
Price
opinion,
that the
It is important that we
to
right
say
came
the
(Continued from first page)
me
FINANCIAL CHRONICLE
While
which
the
operated
are
pretty well known, let me sum¬
them
marize
for
you here very
briefly. We have taken the posi¬
a price is generally fair
and equitable if it enables an in¬
dustry to earn profits equal to or
tion that
greater than those it earned in
peacetime. For this purpose we
have taken the years 1936-39 as
our principal benchmark.
Now
this
does
earnings
any
level
Quite
the
earnings
level if
feel
that
above
that
reverse—we
need
they
undertake
to
be
to be fair, and we
are
raise
to
1936-39
excessive.
be
to
that
mean
the
above
taken
are
not
while
at the
uniform
industry
time applying
of fairness to
same
standards
all industries.
-
I
think, then, that we can ap¬
proach the problems of reconver¬
sion with confidence.
While it is
true that the
problems are larger
difficult than they were
and more
i; last time,
under
standards
have
we
.,
individual
of the
ments
prices when¬
earnings fall below it.
we have great advan¬
tages which then were lacking. ■.?
Now, of course, there are no
magic formulas, there are no sim¬
ple answers we can pull out of a
hat. Our pricing will have to de¬
velop industry by industry, chang¬
change and im¬
ing as conditions
proving
this
are
as we
new
gain experience in
field.
But
clear and the
which
our objectives
principles upon
shall operate are com¬
we
principles that any¬
should be able to under¬
stand and, I think, approve. Let
mon-sense
body
sketch them for you.
me
must continue to hold
against inflation. We can't
let our fighting men come home
this time to face rising rents and
climbing food prices as they try
First,
we
the line
Most
industries, as you know, are earn¬ to get a; new start in civilian life.
ing well above that. All corpora¬ We cannot afford to let the price
tions taken together had earnings level
go, and with it the wage
in "1943
totaling
before
taxes level, in a speculative spree that
nearly six times peacetime levels must inevitably be followed by a
and,
after taxes, nearly three collapse. This isn't going to be
ever
times those levels.
Now
.
easy,
price which is fair for
industry may still entail hard¬
an
a
but do it we must and do it
shall.
we
Second, we must take no action
individual firm. As which would deflate the economy.
there has always There
are
hundreds
of
items
been in every industry a group of which have been out of produc¬
ship for
an
know
all
we
who have operated
producers
This
red.
the
in
true
has
always
in
been
when prices
have been established by the free
play of market forces, though I
it
think
that
peacetime,
have
worth
is
as
been
fewer
vidual hardship
fact
of
cases
were
most prosperous
to
In
dealing with the question of
hardship,
we
have
made a number of simple and I
decisions.
that
time
If
not stood still.
costs
we
were
require the producers of each
bring them back
the market bearing the same
of these items to
on
went
peacetime years.
common-sense
have
indi¬
individual
think
Since
price
in our
even
immediately after Pearl
Harbor.
there
under price con¬
than there
trol
remembering
of
matter
a
tion since
they
tags
when /they
had
out, this would force many
producers to cut the wages they
are currently paying labor, to cut
the prices they are currently pay¬
ing. their suppliers. Such a policy
could easily touch off a spree of
price and wage' cutting which
could
put our economy into a
:
all, we decided that we tailspin. This too we are determined to
couldn't set the price for an en¬
that we faced this reconversion
able production
achievement of
tire
industry at a level high avoid. If it's a question of cut¬
the home front.
Indeed I think problem once before and that that
far
better record
of price and enough to cover the costs of the ting costs to match a pre-war
the two are closely related. As I time we bungled it, bungled it
wage
control during the actual least efficient producer. This is price or of raising prices to match
see it,
there are four basic rea¬ badly. In November 1918, when
current costs, there's no doubt ih
the Armistice was signed, such fighting, with a price and wage essentially what was done in the
sons for this record, four reasons
job this time is bigger and more
difficult. But we come to the job
of reconversion this time with a
First
of.
structure that is sound and bal¬ last war and it didn't work, y It my mind we shall choose the lat¬
controls as existed were
we have been so .successful price
The
dangers of deflation,
anced. ; What is more, in making pushed up prices and costs all ter.
pulled off almost
immediately.
restraining prices.
that record we have acquired a along the line and in due course when war expenditures are pulled
The
economy
was
left
to
find
its
In the first place, there is the
out
of
the
economy, are suffi¬
know-how we
didn't have last put the marginal high-cost pro¬
own
way back to normal.
For a
miracle of production.
However
ciently grave that we must dp
few months prices and wages did time. And most important of all, ducer right back where he started
great the demands which were
We decided, rather, nothing that would increase those
we come to the problem with our —in the red.
remain
stable, ?even
declined
placed upon our productive ma-r
;
eyes open. We know the dangers to take care of individual hard-; dangers.
chine, those demands1 were met slightly. But by spring of 1919
Accordingly, the prices we are
that
lie
ahead.
Last time we ship
cases
through
individual
;and exceeded. We have filled the they were surging upward once
didn't.
price
adjustments.
This
has going to establish for new goods
vast needs of war. We have met more., As a result, almost half of
been fair to the individual pro¬ brought back into production will
Let me stop a moment here and
the needs of the civilian economy the total inflation of the last war
ducer, while it has saved the Gov¬ definitely take account of the in¬
too. Abundant supplies have had occurred after the Armistice. For spell out what I mean by this
ernment and consumers billions creases in wage rates and in ra\fr
a year and a half we had a mad
know-how that we have acquired.
a
good deal to do with keeping
material prices that have taken
of dollars.
prices down. On the other hand, speculative spree. In the middle; We have issued I don't know how
place since they were last in pro¬
Secondly, in dealing with the
let me add, stability of prices and of 1920 we began to pay the piper. many
regulations and, amend¬
duction.
of individual hardship
costs has had a good deal to do The bubble burst and a savage ments to regulations by now—the problem
It 4s only common sense that we
in which
carried regulations
with the production records. Dur¬ deflation ,set
themselves run to we have made two simple distinc¬
why
in
.
prices and wages downward even
more rapidly than they had risen.
Wholesale prices fell 40%.
Ungoing to come
tween prices and costs. That is, emoloyment shot up by nearly 6
I think, a major reason why in million, payrolls shrank 44% and
the last war production increased the average weekly earnings of
ing
the
could
last
war
tell
businessmen
how
they were
out in the race be¬
never
only 25%, while in this war it has
than doubled/
more
Second,
the
crease
has
country
sponded to the
paving.
.
re¬
call for wartime
In spite-of the vast in¬
in
production, there have
been billions upon billions of dol¬
lars
of
excess
purchasing power.
billions, which could have
put prices through the roof, have
gone instead into war bonds, re¬
'These
Pearl Harbor.
This too has had
good deal to do with
j
55
billion
a
success
our
in stabilizing prices.
}:" Third, people have recognized
j as necessary and fair the wartime
controls that have been
Because
they
(these controls
sary
have
as
imposed.
recognized
fair and
neces¬
they have stayed out of black
j markets, they have put up with
shortages. They have played the
game according to the wartime
in
million
losses
000,
40%
five
rules.
That
in
Fourth,
our
we
(Stabilization.,
has
been
no
small
success.
loss
a
national
have had
a
developed.
,
of
Inventory
billions 7 and
11
totaled 106,the five
years
than in
1910-14./
in
ed
Where
the
a
war
product was need¬
effort, or where
should
these
take
account.
increases
into
However, there has been
those
industries
in
which
fused
to
make
individual
price
pricing" is appropriate. adjustments. However, and this is
By that I mean setting prices on the second distinction, even in
"formula
pay.-,
.
•
,
hourly
Average
wages
in
the
automobile industry, for instance,
we have pro¬
have increased only 9%% since
price
adjust¬ the last automobiles were manu¬
into account inventory losses, net erate best with a flat dollar-and- ments where the producers affect¬ factured in early 1942.
StraightFor time hourly wage rates are up
farm income tumbled from nearly cents type of price ceiling. I think ed were relatively efficient.
have
recognized
that this only 4%% during this same pe¬
9 billion to less than 3 billion. it is going to make a great differ¬ we
would save the consumer money. riod.
In the next
Straight-time hourly wage
five
years
453,000 ence, in the reconversion period,
If these efficient producers were rates in other so-called consumer
farms
were
lost
through fore¬ that we have this hard-earned
knowledge of the many industries forced out of business, consumers durable industries have risen to a
closures.
' \
The farmers too took
prices fell 61%
a
beating.
and taking
That's the story of reconversion
after the last
war.
Everybody had
moved up together and everybody
down together.
We went up
down hard. It's a
came
fast; we came
story that provides
son
011
how
not
a
to
story
which
we
are
shall not ,be repeated
the
basis
of costs plus a
margin.
individual
that go to make up our economy
would
have
and of the
cient producers and pay a
that
price.
we
know what industries op¬
can
types of price control
most effectively be used
in each one.
perfect leshandle
to establish
the
It's
a
determined
thi^ tiijae.
non-essential fields
vided
And
issuing these regulations we
have been under legal obligation
problems of reconversion.
prograrp
to
1921.
more
1
factor
1919
in
totaled
next
Farm
since
tions.
kno^v
6V2
nearly
dollars
run
working
the
their
jobs
quarter.
Corporate profits tumbled from
kept
cut by one
years
billion
In
wiped out practically all the re¬
serves
accumulated out of war-,
time profits. Business failures in
who
workers
payment of debts, insurance. The
people of this country have saved
100
amendments
thousands.
the
out
these
regulations
and in it was essential to civilians— a lot of loose talk about Increases
of 25 to even 35% in the prices at
amending them, each one geared where, in other words, we needed
which new automobiles will sell
increasingly to the individual re¬ every ounce of- output we could
overu the levels
at
which they
quirements of the industries af¬ get—we provided individual adwere last sold early In 1942.
This
fected, we have learned a lot justments even in cases of ex¬
is
both
irresponsible and
about our price system and the treme inefficiency. On the other talk
way
it works.
And we have hand, where the item was not es¬ dangerous. Let me say with em¬
learned too the kind of pricing sential, either to the war program phasis that I know of no increases
in straight-time wage rates or in
technique that is best suited to or to civilian life, and where the
and
manpower
em¬ the prices of basic materials since
each
J industry and trade. We resources
that would warrant
know now those in which it is ployed by the firm would there¬ early1942
any such increases in the prices
best to stay with a "freeze" of fore be more usefully employed
which the public will be asked to
prices as of some base date.
We elsewhere, we have in general re¬
were
<
into
the
500,
over
In
erally
we
I
of
turn
to
less
effi¬
higher
'
have
our
to
somewhat
even
degree.
greater
But
in industries where the rise
has been double or triple the in¬
sketched
these
outlines
price control policy simply
to make clear what I mean when I
crease
we
in the automobile industry,
have
remarkable
many
in
provements
im¬
efficiency.
plant
Thanks
to
American
industrial
prices which are gen¬ say we have know-how in this
and engineering genius, the auto¬
and equitable.
This field that was lacking after the
mobile
industry and other heavy
done and at the samej last war. We know how to adapt
our
techniques to the require- industries will, for instancej enter
fair
have
i(t\me we^have also ^given full ef¬
rrTl
rt
■nni'rr-'ifiiH?
v
i
1
'
"
'*
'
f. *
L
,>
«•
Volume
THE COMMERCIAL &
Number 4312
160
post-war period with many
unbelievably more efficient ma¬
chine tools. One such machine is
the
on
hours
to
Another
it
open
ladder
means
to
in
terms
of
those with
the
com¬
petence and initiative and enter¬
to have cut production prise. They are not going to take
a
given unit from 90 a shrinking market lying down.
And
let's
not
forget that 11
two hours and a half.
reported
time
what
machine replaces 17
new
million
men
returning from
the
have
we
CHR6NICLE
FINANCIAL
priced
the
on
basis
of
the
895
they
prices
charge
and
the
stable in spite
the require¬
ments
of
our
full - production
economy;
I, for one, think Amer¬
still
ican businessmen will
mass
we
production and that is why
have been able to hold prices
of rising wages and
business the highest
yield
profits
This
they
have
ever;
enjoyed.
has, I think, persuaded lots
of what
they
wages
to that
Canadian Securities
to
pay
(Continued from page 893)
which overhung the
inventories
measure up
responsibility.
market have been liquidated
I, for one,
lessons
of
cent
corners
of
the
earth—those of
pieces of equipment formerly re¬
them who do return—aren't go¬ automotive industry from its earl¬
quired for one operation- in drill¬
iest days has always known. Dur¬
ing, machining and finishing a ing to take apple selling and like
it.
In fact, they aren't going to ing the reconversion period we
casting. As a result, costs of these
take it—period.
propose to price on a full-produc¬ tor of business opinion will still
*
particular castings were reduced
Some of them are going to want tion
basis.
That means stable hold to the old views and old
from $3.88 to 22 cents each.
While these particular savings jobs, good jobs paying a living prices. That means narrow mar¬ habits.'•;• V.;■'y
It is upon this confidence of
are
undoubtedly extreme, there wage. Others are going to want gins. I think our experience dur¬
business
working
reconversion will persuade American
is no questioning the fact that un¬ farms on which they can raise a ing
shoulder to shoulder with farm¬
der the pressure of war produc¬ family. Still others will want to those who still have some doubts
tion we have developed many in¬ go into business. But all of them that what we can do in time of ers, with workers, and Govern¬
war
we
can
also do in time of ment that I look forward beyond
dustrial
savings which will be are going to want opportunity.
the reconversion period
to the
available during the post-war pe¬ And I have a hunch they are go¬ peace.
If we proceed on this basis, as greatest era that American enter¬
riod.
Under full production, the ing to figure that it's up to us,
results in many industries will ac¬ who have been running the home I propose we shall, then when the prise and the American people
have ever known, an era in which
front while they have been doing
day comes to strip off the last of
tually be lower labor costs per
the tremendous potential which
the fighting, to see that they get the
wartime controls, we shall
unit.
What is more, turn back to American industry we have only now come to real¬
When we examine the costs of that opportunity.
ize is ours will be fully harnessed
I think they're right.
a price
basic materials used in the pro¬
structure fully geared to
of
particular prod¬
duction of these
ucts
again find little reason to
we
increased
sharply
justify
prices
Now, what does all this mean
for prices?
It means prices that
are set to tap mass markets, prices
majority of consumer
for the vast
Today the price
of cold rolled steel and the prices
of steel plates are still at the lev¬
els of January, 1942.
Copper has
•not moved in price.
The prices
for some products, such as hides,
cement and aluminum, are actu¬
that
ally
trifle lower now than in
a
yield profits on the basis of
Too often in the past, our in¬
dustrial leaders have lacked the
up.
imagination to tap mass markets.
They have tried to play it safe by
pricing their products to yield a
profit at 50% of capacity. But the
result has been that their opera¬
businessmen
the
production.
From that
time on, how prices are set will
be the responsibility of American
all-out
At this
I
have
I
am
ment
point let
said
on
me
interesting
rial
and
America
earlier occasions.
ufree market"
the
In
was
easier and was
period
ahead
of
us,
pattern should con¬
tinue—firmness with little ac¬
the
same
The current high level
should preclude
tivity.
market
of the
heavy
any
speculation
the
on
upside, but there remains still
few lagging situations among
a
the provincial
sues,
well-being of all
heights never before
notably
and municipal is¬
Albertas,
Mani-
tobas and Montreals.
dreamed of.
Interesting Situation
FIG Banks Place Bebs.
A successful
offering of
an
of debentures for the Federal In¬
economy
Ver¬
mont Public Service offers attrac¬
tive
possibilities, according to a
being
distributed
memorandum
issue
Gov¬ termediate Credit Banks was con¬
ernment
must
underwrite
the cluded Aug. 18 by Charles R.
level of production and income
Dunn, New York fiscal agent for
and be ready to take whatever
the banks. The financing consisted
steps prove necessary to sustain
those levels.
But I am also con¬ of $20,315,000 0.85% consolidated
modern industrial
is¬
quoted at 10% % discount.
Common stock of Central
underwrite the level of
production and income. I am con¬
vinced, furthermore, that in a
any
Internal
dicted, the Canadian dollar in the
moral
to
supply in
volume.;
still offered, and, as pre¬
sues were
repeat what
convinced that only Govern¬
can
ebb due to lack of
to the advancement of the mate¬
even
business.
volume, not on the basis of mark¬
durable products.
our
and
current offerings are scarce.
Re¬
refunding operations have
the war period, re-enforced by caused
difficulty in portfolio re¬
those we shall draw from pricing
placement
operations.
Conse¬
during reconversion, will be so quently prices again were slightly
persuasive that no important sec¬ higher but activity was at a low
confident that the
am
by Buckley Brothers, 1529 Walnut
St., Philadelphia 2, Pa., members
of the New York and
Philadelphia
Stock Exchanges.
Copies of this
much above 50%
interesting memorandum may be
of capacity, while men went with¬
obtained from Buckley Brothers
out jobs, and consumers without
changed.
'It is quite true that in many in¬ goods. The national income as a
whole has run at half what it
dustries there may be cost in¬
vinced that this very guarantee, debentures dated Sept. 1,1944, due
Appreciation Possibilities
creases of which we are not yet might have been, so that all of us,
Standard Stoker Co., Inc. offers
fully implemented by adequate June
business leaders as well as every¬
1, 1945. The issue was placed
aware.
Moreover, I can assure
a
liberal return and good possi¬
programs ready for instance use,
at par.
body
else,
have
earned
far
less
The proceeds, together bilities for
every businessman that we will
will make it possible for private
price appreciation ac¬
than we might have done.
study each new reconverted in¬
enterprise to outdo itself, so that with cash funds, will be used to cording to an interesting study of
We aren't going to go forward
dustry carefully in order to take
actual Government operations un¬ retire
$22,875,000 of debentures the situation prepared by G. A.
by playing it safe.
A mass pro¬ der that
all factors into consideration.
guarantee will be at a due Sept. 1, 1944. As of Sept. 1, Saxton & Co., Inc., 70 Pine St.,
duction
economy
doesn't
work
It is
essential, however, that
minimum.
New York City- Copies of this
1944, the total amount of deben¬
these
stories
of vastly
higher that way, and ours, we have
study discussing the present and
If the Government's guarantee
found, is far and away the most
tures outstanding will be $285,prices for consumer durable goods
post-war outlook may be obtained
is to have this effect, however, it
powerful
mass
production
econ¬
be stopped and stopped hard.
from the firm upon request. .
If
715,000.;
-'V
omy on earth.
During wartime will be up to businessmen to gear
they represent economic defeat¬
ism on the part of some industrial
leaders in their thinking about
the future, I believe they are par¬
ticularly dangerous.
This announcement is not, and is under no circumstances to be construed as, an offering of these Bonds for sale
So when I say that OPA is go¬
or as a solicitation of an offer to buy any of such Bonds. The offering is made only by the Offering Circular.
January, 1942. Coke and indus¬
trial chemicals are virtually un¬
tions never got
•
ing to take costs into account in
fixing
prices, "remember
that
costs,
going to be looking at all
not just those that have
risen.
And so, while we may
we're
to
mark
have
prices, that
of them all, not by
$47,000,000
some
up
won't be true
long shot.
a
Kansas
Third, we shall price'for a
full-production, full-employment
economy.
Before the war the
United
States
was
known the
for our achievements
production. But those
have been utterly dwarfed by our
achievements during the war it¬
self.
Today the index of indus¬
trial production stands more than
,125% above its peacetime level.
,Right there in that figure is the
story of what is happening in Po¬
land and in France, what is hap¬
world
in
First
over
pening in the islands of the Pa¬
Right in the figure is the
reason why, while swamping the
Axis on every front, we have at
jthe same time sustained a stand¬
ard of living at home higher than
we have ever had before.
Having
demonstrated what we are capaIble of producing when we put our
not going back
to half-production and half-em¬
ployment and half - consumption
•minds to it, we are
nftpr the war.
in a
the first time
tasted, for
generation, the
have
farmers
Our
income such as
prices and
took after the
.
October 1
$550,000
1948
566,000
1949
582,000
1950
Maturity
Maturity
Maturity
Amount
Coupon
4
%
3%
3%
Yield
1.50%
1.65
1.80
Amount
October 1
Amount
October 1
Coupon
Yield
$822,000
1965
3%
2.75%
838,000
1966
3
2.75
3
2.75
2.75
Yield
Coupon
$694,000
1957
2V2%
2.30%
710,000
1958
25/g
2.40
23/4
2.50
854,000
1967
870,000
1968
3
726,000
1959
598,000
1951
3V2
1.90
742,000
1960
2%
2.55
1952
3%
2.00
758,000
1961
23/4
2.60
886,000
1969
3
2.75
614,000
278
2.65
902,000
1970
3
2.75
27s
2.70
918,000
1971
2*/2
2.75
934,000
1972
1%
2.75
950,000
1973
m
2.75
630,000
1953
3%
2.10
774,000
1962
646,000
1954
3%
2.15
790,000
1963
662,000
678,000
1955
1956
2%
2.20
2%
2.25
806,000
1964
,
2.70
27s
"'•3
$27,500,000 2%% Bonds due Oct.
they
for
the first time in a generation, the
fruits
of full
employment and
wages a man can raise a family
on, decently and in comfort. They
commencing October 1,1948 as shown below:
MATURITIES AND YIELDS
and accrued interest.
1,1974. Price
describing these Bonds and giving
from any of the undersigned•
Copies of the Offering Circular dated August 31, 1944,
information regarding the Company may be obtained
last war.
workers
Our
To mature serially
To be dated October 1,1944.
; fruits of all-out production. They
are not going to take a slash of
;
Mortgage Serial Bonds
mass
cific.
'
City Terminal Railway Company
have* tasted,
,
*
*
are
going to
not
unemployment,
handout to keep
body and soul together.
And our businessmen, they too
know what it means to have a
Dick & Merle-Smith
Salomon Bros. & Hutzler
insecurity, and a
Drexel&Co.
:
market
for
know what a
full-employment
in terms of the
dollars they can
bank. They know
they
full-production,
economy
Stroud & Company
Incorporated
everything they can
means
produce,
White, Weld & Co.
August 31,1944•
THE COMMERCIAL &
/
896
Thursday, August 31, 1944
FINANCIAL CHRONICLE
cate
Sinking fund assets of the City
of Wilmington, N. C., applicable
to redemption of outstanding wa¬
Inc., New York. Contrary
previous expectations,.based in
part on the impressive improve& Co.,
to
bonds total¬
ing about '$1,000,000 have quad¬
rupled within the past three years,
it was reported recently by City
ter, sewer and street
-
Manager A. C. Nichols.
*
said, at present
$615,009 and will
to
Wire Bids
on
NORTH and SOUTH
$700,000 by the close of
the current fiscal year.
In 1941
-reach
•
amount
the
Aside
regular annual
the
from
past three
the
received
•F. W.-
the fund
years,
additional $200,000
an
at the close of the
RICHMOND, VIRGINIA
Bell
depressed, the old preacher got up
one night and after a sermon he
closed with this prayer: He said,
System Teletype: RH 83 & 84
what I have in mind.
lived
have
eight
Telephone 3-9137
I
can
am
been
hasn't
There
with.
of
people who are in the national
capital making up what we know
the United States Congress, so
the
power
of bureaucracy
as
has
in
grown
your
have
we
Government until
fast
carry a
immediate
any
as
approached, if we
amongst us instead of acqui¬ have not reached, a stage not
where
we
have
a dictator (and we
escence.
Now I hope in my concluding will never have a dictatorship in
remarks for a few minutes that America, I am confident, in the
I
seriously
and
earnestly
familiar
are
in
years
of amazement known
maze
clear message. What form that it has been in other
saying tonight is extempo¬ countries), but we have a hydraheaded control, a dictatorship of
raneous or impromptu, but I think
ment in earnings recorded by the that we have reached the point in bureaucracy.
Port Of New York
Port Authority since the first of all of
In
America where
my
own
humble opinion,
anybody
Authority Bonds Again
the year, only two instead of the who
believes
in
the American born out of experience I have had
Held Tax-Exempt
anticipated three and possibly four way of life; any man that is a in eight years, we are going to
have to destroy bureaucracy as we
The Port of New York Author¬ syndicates competed for the issue. farmer, that wants to see agricul¬
Failure of broader competition to tural America produce, any man recognize it. We are going to have
ity on Aug. 24 won the second,
to destroy bureaucracy or it is
and possibly final decision, in its develop obviously was occasioned that is in the investment business
by the imminence of the recent that has a regard for the future going to destroy the American
fight against the attempt of the
decision and possibly some uncer¬ solvency of his business—all of us system of government.
When
Federal Administration, through
use
must awaken to the fact that these
"bureaucracy" I am talking
the medium of the Internal Rev¬ tainty as to its nature.
This
was
things cannot be accomplished by about anybody from a typist, up
apparent in the
enue
Bureau, to have its bonds
^
clusive.
is
tee,
studying the whole scope of secur¬
ity legislation. - There have been
to make
long hearings that some of you
employees
compared to the small handfu
as
Maybe there should be some strife
CRAIGIE&CO.
fiscal year on
1943. The bonds cov¬
ered by sinking fund assets ma¬
ture between 1948 and 1955, in¬
June 30,
Securities Exchange. Sub-Commit¬
result from
our
nation's capital, and I want it, but that is not for you to feel
despondent
about,
because
some
to tell you that just as there are
of these problems are such that it
acres and acres of buildings, thou¬
takes a great deal of time to work'
sands and thousands of
the
along.
Finally, after a period of feeling
ready lor the strife that he had
been
missing for a long time.
I
But
was
MUNICIPAL BONDS
permitting me
clear to you
fine, not only for a few
days and a few weeks and a few
months, but for several years it
thing
"Dear God, if there be any strife
amongst us, stir it up."
He was
appropriation of $80,000 during
words is not
grew.
The collections were good,
and they grew and grew.
Every¬
CAROLINA
only $153,399..
was
(Continued from page 893)
went
VIRGINIA—WEST VIRGINIA
The fund, he
amounts
Bureaucracy Vs. Free Enterprise
by Harriman Ripley
headed
the
Congress,
committee in
your
Municipal News & Notes
them out in
that you are
a manner
of
doing the right thing botlr
for
the
industry
and for
the
public.
Let
me
assure
you
that the
sure
Committee
Interstate and For¬
on
eign Commerce, which handles all
legislation of this kind, has become
familiar with your problems and
has
a
you
are
great respect for the job
doing and a real confi¬
dence in you as American citizens
(and
feeling at all like we hear
expressed in reference,
no
sometimes
to administrative
government), no
that there is any
qualities that
are in the public interests in theconduct of your business.
feeling
all
at
lack whatever of the
.
■
declared subject to
We are going to or down, who exercises any single
acquiescence.
authority of regulation of busi¬
fight for them.
Today the American soldier and ness that is private, or affairs
that are personal, who usurps any
his gun make up a chain that cir¬
contrast with the bid of 94.12
cles all the world. In several and authority that is not a definite
made
by
the
other
account,
which was headed by Ilalsey,
sundry climes in every continent and specific mandate given to him
and place, the American soldier through the hands of the people
Stuart & Co., Inc.
and their chosen representatives.
That investors, too, were chary is on the march, and he is fight¬
It may be that you are more
of participating in the issue, until ing a war that is testing whether
interested in a particular bill, and
or not nations whose government
the decision favorable to the Port
controls
the
people or nations just what a certain bill like H. R.
Authority was announced, is seen
where the people control the gov¬ 1502 might do to your particular
in the fact that up to that time
ernment
shall
survive.
industry. At the moment, when
the underwriters had succeeded in
You and I have that, fight on you are hearing me talk, it might
placing only one-third of the is¬
our doorsteps.
I am here to tell not be clear—but these bills that
sue.
The speed with which they
we
are
talking about can only
absorbed the remaining bonds, de¬ you what one Oklahoma farmer
thinks about the future of free have an immediate effect on the
spite the one-point increase in
enterprise and all it means to the financial integrity and security of
price, seemingly was a demonstra¬
the industry in which you are en¬
American way of life.
tion of their confidence in the un¬
You have heard a lot about four gaged.
assailable position of the tax-ex¬
If you think beyond the place
freedoms. They all four of them
empt, status of Port Authority
are
without " any foundation to of what a man in America tries
bonds, also those of similarlystand on unless you put the fifth to build up, security for himself
created agencies, from successful
freedom, free enterprise, under and his family which he accumu¬
attack in the courts,
- V
them to strengthen the structure. lates in property and money, can
Commenting on the recent Cir¬
The
American
philosophy of you today feel that you have any
cuit Court ruling in favor of the
Port Authority, Chairman Frank government that was set forth in security even in a large accumu¬
lation in a bank account, even in
our Constitution is being tested on
C. Ferguson noted as follows:
a strong institution that you build
"The Tax Court," said Mr. Fer¬ the battlefront and is being tested
Bureaucracy has up to a point of what in our ordi¬
guson, "upheld our long-standing here at home.
contention that our bonds are on come to be a new philosophy of nary conception would be perma¬
nent substantiality?
What is it
the same plane as the direct obli¬ government, just as different—not
gations of the States and cities— to be compared with, of course, you are afraid of, if you have any
fear?
Are
you worried about the
the philosophy of the Nazis, or the
a position which has, been main¬
spread which separated the win¬
Federal taxa¬
ning and runner offers, the suc¬
cessful tender of 95.85 being in
tion via the courts.
This
•
stemmed
victory
latest
Federal
Circuit Court of Appeals in af¬
the action of the
from
firming the decision of the Tax
Court of the United States, is-,
last, holding that
sued Jan. 29,
both the Port Authority
and the
Authority
political subdivisions as de¬
Bridge
Triborough
are
in
fined
Internal
the
Revenue?
their
bonds is consequently immune
from Federal taxes in accord¬
Acts and that
on
of
provisions
with
ance
interest
such
Acts.
As
was
true of the Tax Court,
elect
the Federal tribunal did not
judgment on the infinitely
broader question bearing on the
constitutional tax-exempt status of
to pass
State and
each
In
fined
municipal bonds per se.
instance
their
the courts
rulings
con¬
<
solely to ad¬
judication of the statutory ques¬
tion
to whether the two agen¬
as
cies enjoyed
subdivisions.
the status of political
„
Such limitation, however, by
Authority
Port
the
of
victories,
lessens the import
means
no
particularly when considered in
connection with the several de¬
feats
suffered
by
the
tained by the Port Authority from
the time of its first bond issue
Federal
Administration in its efforts to
'
certain
counsel
tsince, has been
accepted as one of the attributes
ment will not appeal the latest
of Port bonds in the market and,
court ruling to the U. S.! Supreme
despite the Treasury's attack, was
Court, it is definitely true that its
upheld by the Tax Court of the
chances of favorable verdict from
United States.
While copies of
that source are extremely remote.
the opinion of the Circuit Court
This view is shared not only by
are
not yet' available, I assume
legal counsel, particularly those
that it has based its decision upon
who have been actively identified
the same ground."
;j / ;
with the litigation, but also by
Mr.
Ferguson noted that the
and munici¬
our
that the Internal Revenue Depart¬
ever
.
•
Port
pal bond firms, not to mention in¬
years
vestors.
The position taken in the mat¬
ter by market circles was dram¬
atically expressed immediately a£of
decision
the
Circuit
the
Court of Appeals was
made,known
and was marked by the action of
the underwriting
group
of the
recent offering of $17,671,000 Port
Authority 2% general and refundings of 1974, in raising the offer¬
ing price on its holdings of the
issue from the original figure of
97.50 to 98.50.
The
ders
resulted
tion
flood of
investment
in the
to
sion
or¬
quick distribu¬
had
of
the
deci¬
been in the hands
of
the underwriters.
The
was
issue
of the approximately two-
announcement
issue, it will be recalled,
awarded Aug. 15 to a syndi¬
Authority
has
for
many
past taken the leadership
in
the
Congress
United States.
sources
thirds of the total issue that up
fight ceaselessly and end¬
fight for a correction of
in the laws, what
us
lessly,
what is wrong
eternally vigilant to
the
Then be
have been made.
errors
administration
carried forward
to it that
see
of
the
law is.
exactly according
to the intent of the law and with¬
out
arbitrary
any
whimsical
judgment
decisions
tliat
in
or
con¬
nection, and that that problem is
the same one that faces the farmer
when
regimented by. the'
Credit, Corporation,
is
he
Commodity
the utilties dominated
by the Fed-'
Commission, and so
era!,'Power
on
down, the line.
view
My
of
problems
'
v
generalbusiness
American
the American
and
.
the
about
citizen in try¬
ing to keep a system of free en¬
terprise is kind of like the. negro
preacher that had just about con¬
cluded the sermon, and somebody
threw
tomato at him and hit him
a
full in the face.
>.
I.
•
-
After he wiped his face he said,
"Now there are going to be about
two
minutes of
more
there
Then
is
preaching.,
going to be about
two minutes of prayer.
there
is
going
damndest
And then
the God-
fight, you
negro
in^our life!"
saw
-I
to 'be
:
ever
•
c
-
just want to say that I hope:
will continue the preach¬
you men
ing that you are doing on your
problem, the
educational work
that is leading up to a better un¬
derstanding on the part of Con¬
in the American
words
soundness of
Constitu¬
is
We do ordain and establish
tion.,
this
government.
residual
in
is
that- there
with
Every power
government is
Every
us.
k
power
exercised by the Govern¬
any official of the Gov¬
ernment is his to wield only as
what
a
us
to direct him to do so.
the
and
Ex¬
You are not thinking of what
the Government might do for you,
afraid of what the Se¬
and Exchange Commis¬
are
you
curities
sion
'
do to
might
I have
special and definite man¬
date from
Securities
the
or
he has
business,
it, the success of it,
change Commission is going to do.
that, is
ment
investment
the
of
people," the first three
"We the
I
own.
a
you.
personal problem of my
am
going to use personal
personal ex¬
Be
more
even
active
than
course
you
than
sooner
entitled to a little;
action will come
you could normally;
are
that
praying
you
And of
have have on that score.
out of the slow-grinding
government. -V If it don't:
come, if bureaucracy is continu¬
ally
arbitrary, let's have some
real fighting.
V
'
expect
of
mill
there
But
America
a
has
illustrations because
Now
do
I
grown \up
members
not here talk of the
as
new
.
/
consequent
from
ity out?
of
individuals. I don't
in
even
know them very well, ex¬
perience
is
the
only
one
that
I
system called bu¬
The CIO Political Action cept through correspondence. And
in the efforts of States and cities reaucracy. It is not just an over¬ have.
am not talking about SEC as an
throughout the country to defend grown departmentalism.
It is a Committee decided that from their institution.
I want to get that
themselves against Federal efforts new philosophy. It is a philosophy viewpoint I was undesirable in
quite clear.
I am not here to¬
to tax their fiscal operations.
that holds that the Government the United States Congress, and
"The Port Authority," said Mr. official has power within himself, so they brought what forces they night, to leave'the impression that
these institutions ought to. be torn
Ferguson, "participated in the or-> that holds that a bureau can leg* had to bear on the election.
down. However, about nine-tenths
ganization of the Conference on islate and even adjudicate the ef¬
It has been customary for mem¬
of all the bureaus in Washington
State Defense which over the past fect of their legislation. .
bers of Congress running for re¬
ought to be abolished, and I think
five years has successfully main¬
That- is getting on a general election not to antagonize organ¬
about. 50% of all the bureaucrats
tained the position of the States scale that we have got to stop. I ized groups any more than is pos¬
in Washington ought to be scalped
and
cities
on
this fundamental could point out to you thousands sible.
In my own case I had to
—and I've got a scalping knife
underwriting houses
ter
wiping your secur¬
I close, I want to say
to you again, I think that your
problem will be solved only if all
The thing that concerns your
time ernment as written under those
of all is, what is
our position was supported, in an first three words in the American security most
gress and opening up an oppor-;
opinion
written
by
the
Hon. system of government, -"We- the your Government going to do? tunity for an understandable ap¬
The thing that determines more
Charles
Evans
Hughes.
It has people," as these other forms to
proach to the problem. Keep it up.
than
anything else the security
been
consistently supported by which I have referred.
ing the tax-exempt feature from
State and municipal debt in¬
While it is by no means
loss of money
Fascists, but just as different from
the American philosophy- of gov¬
almost 20 years ago. At that
have Congress pass bills remov¬
struments.
have to
And so, as
•
of
the
The Congress con¬
of instances of what I am
talking
sistently supported the State and
municipal position culminating in
about, but it would probably bore
you
and .take me longer. I am
afraid
that
my
inadequacy
of
September, 1942, with the defeat
in the Senate of Treasury efforts
interfere with the fiscal affairs
to tax local bonds.
of
ernments have
-
The local gov¬
always pointed out
that Federal taxation of their fi¬
nancing simply
in local
"We
real
trust
will mark
means an
estate
an
that
end
increase
burdens.
this
to
decision
efforts to
the
States
cities.
and
municipalities should
able
to
plans
ment
eral
go
for
now
The
be
fprward with their
post-war
without
the
fear
develop¬
of Fed¬
interference with local fi¬
nancing."
•
- • •
stand
and fight about things and a couple of tomahawks.
i\
believe in, and I closed
I have enjoyed this little visit
my own campaign for re-election
with you.
If you can forgive me
with the frank plea to the people
for a rambling and not very effec¬
of my district to go out and vote
tive talk—I do want to assure you
their
own
conviction, decide if
that as far as I am concerned, I
they wanted to vote in the inter¬
up
that you
think
est of the CIO or the U. S. A.
are
■
I
think
it
is
time
in
our
in¬
dustry that we stand up and fight
on
that same sort of a basis.
I
have
talked
ramblingly here to-
I night. ~ I want to assure you that
the preaching
over
there is
fight
going to be
you
ever raw
policies and bills
1502
and praying
with, and from here on
through.
•
the damndest
to get these
such as H. JR.
'.
-
Volume 460
CHRONICLE'
THE COMMERCIAL & FINANCIAL
•,Number 4312
897
The Securities Salesman's Corner War Program Provides Housing
'\yFor 5,600,000 Persons
The Retail Dealer Is Not
By JOHN DUTTON
.l
-r
,
'v."/ h
% \
.v*'.
.
v •'
\
■
*
'
•
o
<*
*
■
•
>'
•■■
.
■
Overpaid For His Efforts
/
There
is
for
need
determination
a
light and less heat when it"
more
of what
constitutes
in the over-the-counter securities business.
marked
a
comes
to
and fair mark-up
reasonable
a
During the past 10 years
change has taken place in that segment of the industry
which deals primarily with the
retailing of securities. Unfortunately,
well intentioned individuals even within the securities business
itself, who are today the leaders in advocating a generalized over¬
all ruling, which they are trying to apply indiscriminately to the
many
entire
industry, do not appear to understand the difference between
the retailing of over-the-counter securities and the other phases of
the
business, such
This
wholesaling, underwriting, trading, etc.
as
-
War
housing, completed or under construction since the summer
totals over 1% million units, which will house approxi¬
mately 5,600,000 persons, including war workers and their families,
John
B.
Blandford, Jr., Administrator of the National Housing
of 1940, now
Total
change of which
speak
we
deals
Of the
experience, ability and financial wisdom to really do a job
guidance which is based primarily upon the sale of
and the CONTINUED SUPER¬
VISION
WHICH IS
NECESSARY AFTER THESE
SECURITIES
tion and
516
intelligently in securities.under today's
economic conditions
BECOME' NECESSARY
HAS
IT
AXIOMS
OF THE PAST WHICH MOST OF US LEARNED BACK IN THE
/TWENTIES REGARDING THE THREE Rs OF SUCCESSFUL IN¬
COMPLETELY' DISREGARD
ALMOST
TO
VESTMENT:
THE " OLD
longer is it: possible to take such generalities as
No
safety of principal, income and marketability and build a case for
conservative investment.
In fact, no set of rules, no glib generalities,
and no amount .'of statistical study for its own sake: CAN TAKE
THE PLACE OF YEARS AND YEARS OF PRACTICAL EXPE¬
RIENCE IN THE JUDGMENT OF VALUES AND THE APPRAISAL
OF
FUTURE
TAIL
PROBABILITIES.
HE'S
CHANT,
MENT
short, THE SUCCESSFUL RE¬
IS NOT ONLY A MER¬
SECURITIES TODAY
IN
DEALER
In
ALSO
SPECIALISTS
ONE
BEST EQUIPPED INVEST¬
YOU CAN FIND ANYWHERE.
OF
THAT
THE
c
n
o
si
r
War
-
a n c
n
is constantly
than average
the; tax
laws
their
effects
upon
specific
securities;
he
even
securities which indicate public preference at
a particular time.
He discards 10 times as many situations as he
selects for his clients.
He does these things as a regular part of
watches
his
for styles in
HE KNOWS THAT THERE IS NO
BUSINESS GOING AND GROW¬
THAN TO MAKE PROFITS FOR HIS CUSTOMERS.
business,
BETTER
ING
BECAUSE
AND
WAY
TO
KEEP
HIS
these small firms employ no regular statisticians,
this does not say that they do not select and offer the proper
met
in
most
.
In addition to the
vided
John B. Blandford Jr.
housing
pro¬
through ' new construction
conversion,
approximately
and
-
g
war workers, hundreds
thousands with families, have
2,000,000
of
taken
been
care
in
of
existing
family
housing through community coop¬
eration and War Housing
Cen¬
ters.
These Centers have been
type while the publicly financed
accommodations comprise 522,490
operating in practically every war
production city throughout the
"families;
160,430 dormitory
units, and 54,745 stop-gap units,
which includes both trailers and
country.
/
conversion.
but
All
.
the privately
few of
a
units
financed
...
of the
are
for
industries; he portable shelter uhits. >on the lookout for special situations which have more
Units under construction with
opportunity for price appreciation; he is familiar with private financing amount to 72,and
been
Pacific Coast.
show
702,280 units of new construction
and
35,385
accommodations
by
n
have
although there are still crit¬
ical situations—particularly on the
areas,
737,665 units
of
public
i
housing needs of migrating
The
on.
f; i
*
workers
by
e
v
6,478 will be by con¬
figures show 12,422 pri¬
vately financed and 11,839 pub¬
licly financed
units, completed
during the month, as compared
with a total production of 53,023
units, of both private and public,
during June of last year.
been
plished
will be new units,
shelter accommo¬
June
He knows and understands the trends in various
.
v:"
have
6,356
stop-gap
version.
188,-
accom¬
of
under construction and
were to be started, of
dations and
accom¬
small volume
In order to invest money
which
3,161
construc¬
new
were
more
t i o n s
e
modations
complicated
and types
com-
HAVE BEEN SOLD, just
business today.
At best,
effect upon
financing
701,109 are of
investment
SELECTED ISSUES to their clients,
don't last very long in the retail securities
if they do manage to hang on and do a
business, their influence in the industry and their
the public at large is small indeed.
aone*®*—
been
by private
financing
ficient
of
1
p
•
amount to 1,627,290 units, of which 889,625
now
have
through
private
737,665
comp leted
by
public financ¬
ing.
primarily with an atti¬
dealer now assumes toward
his client. ";Today the successful retail dealer does more 'than sell
a
security—he sells his brains. Those dealers who don't have suf¬
*
completions
accommodations
tude which the modern, progressive retail
:
announced.
Agency,
71,306 were
scheduled to get underway as of
additional
An
840.
Kansas
housing now being built is of
war
construction and
temporary
be torn down after the war
the housing
of investment bankers
Dick & Merle-Smith
today (Thursday) offering $47,000,000
Kansas
City
Terminal
Railway
firsts; mortgage
serial
A group
will
headed
while
will be absorbed for
and
.
normal hous¬
bonds, dated Oct. 1, 1944, and due
serially from 1948 to 1974, inclu¬
sive.
Of this
issue, $19,500,000
mature in amounts from $550,000
30, of which 57,334 are new ing needs when the war use has
13,972 are by conversion of passed. 90% of the private war
existing structures.
On the same aousing is being financed through
FHA-insured mortgages.
date 54,028 public units of varied
June
and
$950,000 annually between 1948
1973, bear coupons from 4%
to iy8% and are priced to yield
from 1.50% to 2.75%; and $27,-
to
and
In many cases
but
securities
act
as
their
to
their
own
In most
clients.
the heads of these firms
cases
statisticians—they carefully supervise
Real Estate Prices
investment procedure are
working
for someone else.
They have seen the mistakes that have been made
in the past and now they profitably apply the wisdom gained from
their own experience in the conduct of their own business.
When it is realized that these smaller firms deal in units of
investment, rarely aggregating sums of over,, $5,000, and in most
cases the sale involves a much smaller sum, it can be readily appre¬
ciated that the percentage of markup involved in handling such small
sums must be more than in the case of the large investor.
The
work involved in selling 100 shares of a $10 stock is often times
greater than in taking an order from an institution for a block of
a $100,000 worth of bonds, or a 1,000-share order for a well-known,
highly marketable security. If the gross profit in such transactions
does not cover the cost of doing this type of business then the
smaller investor will suffer.
The elimination of the small, retail,
over-the-counter organizations from the investment scene would
bring about a condition where the average investor who now de¬
pends upon his security dealer for advice, counsel and guidance
would in the most part have jno place to go and no one to turn to
successful career behind them
'
procuring the assistance which he now receives from these
of smaller firms that operate in every State in the
from coast to coast.
v v -/ '
' ' in
sands
thou¬
Union
,
business are not excessive.
The law of competition sees to that.
In fact, they are just about
as low as they can
be, and still allow enough to take care of over¬
head and leave a small profit for reinvestment in the .business.
The financial results and the records of the majority of these firms
will also prove that most retail security firms make only a modest
return upon their invested capital and the effort which they put
The
markups
into their work/
:. •
in the retail security
..
gives as much for so little.
Most of the heads
excellent job
or other types
than they are
making by staying in the securities business.
They need encourage¬
ment and recognition by both the Governmental bureaus and by mem¬
bers of the exchanges and the large underwriting firms—rather than
constant interference and carping criticism.
Small business is the
backbone of this country—it is also the backbone of the entire finan¬
cial and securities business.
The large firms would suffer more
than gain by the elimination of these firms through their inability
to make ends meet—the investor would surely be worse off than
he is today—and the country at large is also going to need retail
progressive firms which are' doing such an
today could find employment in industry, advertising
of merchandising and sales work, at higher salaries
of
the
The
small retail firm can handle its own problems, but it cannot stand
much more outside interference and restrictions on its methods of
operation or its markups—there is a limit beyond which even the
most efficient and capable operators of these firms cannot be pushed
—the game has to be worth the price of admission or even these
distribution
fellows will
of new
in real estate prices will
considerable period after the
of home financing executives in 14 industrial
greatest increase in the civilian population has
The 1939-1940 level
such prices
the
equity financing in the years
quit playing.
/
>
to come.
a
In
an
Loan
and
be the floor beneath
war, in the opinion
League
of
Proceeds
be
used
for
the
1,
1945,
at
Jan.
financing,
the
to¬
funds, are to
with other
gether
centers where the
come as a result ol
several of these managers
issue at competitive
awarded the
conducted by the United States
opinion survey
League,
priced at 99%. The group was-
sale on Wednesday.
redemption
105
on
and inter¬
first
bonds Of the
Terminal Company now outstand¬
ing, The additional $4,577,050 re¬
quired will be furnished by the
Terminal Company and its pro¬
$49,121,000;
gold
4%
mortgage
level in real estate
the
all
of
est
of member
loan associations oi^
felt that the price tically all their present facilities,
would remain they conclude, shipbuilding cen¬
and
savings
the
for
boom.
war
Savings
the
post-war period, ters will have a much more dif¬
majority suggested that ficult time in keeping present- prietary railroads. Capitalization
labor and facilities employed.
outstanding upon completion of
a
gradual tapering off of prices
The survey of post-war pros¬ the present financing, in addition
by from 10 to 25% would even¬
tuate in the readjustment period. pects among savings and loan ex¬ to the new $47,000,000 issue, will
into
firm
while the
homes
which there has been a
concentration
of
effect.
went into
building atten¬
restrictions
•
<
-
foresee
generally
after
made
surpassing
war
levels.
flected
to
as
in
the
a
peactime industry
considerably the pre¬
This outlook was re¬
answers
what the
peacetime
the managers
transition has
to
prospects are for
production
facilities and labor now
in
■
war
question
a
industries.
to
absorb
employed
.
/Half of those surveyed
-
fifty-one.
of adjustment would be
relatively brief and that the care¬
post-war planning already un¬
way in many industries will
stand them in good stead.
der
■
for over 36 years. He
firm in 1914. Re¬
gage
for
own
trustee one-eleventh of the
required from time to time
payment of principal of and
premium, if any, and interest on
the bonds and, in case/of default
Cartmell,
He
the
was
of
Dealers'
by any. other proprietary railroad
or
railroads, to pay its ratable
share of the amount of such de¬
organizing his
in 1934.
one
Unlisted
of the organizers
Securities
Association of New York and was
a
former governor
of the associa¬
tion.:''':'
opinions generally take into
the. certainty that
the extent and ease with which
war
pends on
volved.
construction can take
facilities de¬
the type of industry in¬
industry
While many manufactur¬
ing plants now producing muni¬
tions will be able to absorb prac-
Attractive Situations
Laclede-Christy Clay Products
common, which is listed on
the
St.
Louis Stock
Exchange,
Co.
offers
an
sums
fault',^-/
interesting situation, ac¬
a
'/
;
>/; //, V/,/''.'/
are
,
/
New
'
.
& Merle-
Salomon Bros. & Hutz-
ler; White, Weld & Co.: Drexel
Co. and Stroud & Co., Inc.
York
City.
&
Copies of this
memorandum and also circular on
Bartgis Bros, and Federal
may
be
obtained
memorandum issued Works
Rprzoff
by fierzog & Co., 170 Broadway,
cording to
:
Associated with Dick
Smith
The
over
operating agreement which will
provide that each of the proprie¬
tary
railroads
(other than the
Alton) or their trustees, agrees
unconditionally to. pay
to the
Terminal Company or the mort¬
partner in Taylor & White; in
1931 he became a partner in White
a
consideration
peacetime
the property,
turning from service in the Navy
in the first World War he became
firm again
mortgage
the bonds will be
further secured by pledge of an
formed his own
the period
ful
In addition to being a
on
engaged in
business in New
securities
the
York City
and
Kan., which
are
proprietary roads.
used by 12
■
station
City,
Kansas
& Co.,
•//;;/■ //• '■/ /
passenger
freight and passenger terminals in
and about Kansas City, Mo., and
Mr. White had been
&
felt that
union1
partner in John
120 Wall Street,
York City, died at the age of
White
$2,200,000 common stock, par
$100.
Company owns and operates a
John P. White,
P.
New
Quite
and
John P. White Dies
wartime
since
tion
ble debt to
questionnaire
on
$2,201,681 non-negotia¬
proprietary companies
consist of
to the ecutives was made in the follow¬
said that ing cities: Dayton, Ohio; Charles¬
at the close of the war there is ton,^. C.; Wichita, Kans.; Gal¬
likely to be a good demand for veston and San Antonio, Texas;
new
homes in the medium and Berkeley, Oakland, Alameda and
higher-cost brackets, from $6,000 San Diego, Calif.; Seattle, Wash.;
upward. This would be true, they Portland, Ore.; Newport News and
said, even where there was some Norfolk, Va.; and Savannah, Ga.
overbuilding
in the
lower-cost
replying
those
of
Half
League's
been
' •
.'No other business
and
In The Post-War Period
that the highest standards of
strictly observed. Many of these men are
bonds due 1974
500,000 are 2%%
the activities
of'their sales force and make certain
ex-bond salesmen who had a
by
is
produced with private
funds is built for permanency
City Terminal
Bonds On Market
Practically all publicly financed
&■ Co. unon
reauest.
Screw
from
endure,
Some Limitations Of Easy Money
ZS
And Collateral Theories
of any international or
organization, or social
oraer.
who
Persons
them¬
interest
international
in
selves
organiza¬
likely to think in terms
ideals which appear to them
tion
of
(Continued from page 882)
are
personally to be logical and de¬
Such sirable, and to give too little at¬
ineffective price and wage increases.
war-time
measures appear to have
means of restraining wartime intention
to the great variety of
attained a considerable degree of
flation.
/'./■'
ideas of persons in other coun¬
success.
The distortion of usual
tries.
Politicians
are
likely to
/We have consequently adopted
economic
interrelationships has think in terms of the
the following policies:
opinion of
been
definitely
mitigated
by
them.
1. To raise a large part of the
the majority as expressed at in¬
It will undoubtedly be desirable
cost of war by taxation.
tervals by the ballot on a limited
to continue similar measures tem¬ number of issues in combination;
2. To borrow as much as pos¬
porarily after the war with re¬ or in terms of not giving offense
sible from current savings.
spect to those commodities, the to
special groups which bring ag¬
3. To eliminate rising interest
demand for and supply of which
gressive pressure to bear on them.
rates and mitigate the cumulative
are momentarily badly out of nor¬
Economists are likely to think in
effect of rising prices and wages
mal relation; and to relax such
terms of aggregates and averages.
by
v./■///./•../;•
restrictions when a reasonable de¬ The merchant or manufacturer is
a. Keeping
money rates low
gree of balance is restored.
To likely to think in terms of the
through increases in bank re¬ some extent these measures have
particular
products
which
he
serves as necessary by means of
merely slowed down or postponed makes or sells, the desires of his
operations of the Federal Re¬ inflation, but to the extent that
customers, the prices he can ob¬
serve Banks.
they have restrained increases in tain, and the costs he will have
b. Restraining
the
rise
in the
apparent cost of war, the gain to pay. Usually he is engaged di¬
prices, wages and other costs by has been very important.
rectly or indirectly in satisfying
price ceilings,
rationing and
Although such measures have in very intimate personal tastes and
other regulations.
:
the past, and may in the future, desires of the people or a part
Interest
rates on government
be
helpful
by
mitigating the thereof, and in bringing about a
securities have been
very
low
of
the
desires
of
grosser maladjustments produced coordination
and
stable' throughout
the
by war, it may well be doubted if some with the abilities of others.
war
and the increases in prices
they will prove to be a satisfac¬ In the area of consumers' goods
and wages seem moderate in the
tory means of determining inter¬ his contact with the intimate per¬
light of the magnitude of the war est rates, prices, wages, and pro¬ sonal desires of individuals is not
effort.
Bulges in the prices of duction when the grosser malad¬ more remote than that of the
interest
■
national
rates
are
an
..
goods especially Scarce, or in de¬
by reason
Thursday, August 31, 1944
CHRONICLE
THE COMMERCIAL & FINANCIAL
898
being in a majority in lim¬
ited respects, and in one or more
and, 'therefore,-;
/,
v
( '/ ■
Actually there has neve* been?
a
large country which was for
long without any form of central,
government' whatever, or one: in which the central government, try ,
as it would, has succeeded in stif¬
minorities in many more respects.
It is hardly to be expected that
and abilities
human
opportunity for the expression of
a great variety of personal abili¬
ties, partly those of a majority,
but for the most part, those of
an
aggregation of
great'variety
a
of minorities—the
same
individual
often
centralized
any
ling
of
management
the details of industry could provide for the expression of so
In
be
theory, the cost of war mght
equitably raised by bor¬
current savings and by
more
rowing
If the breadth of their ap¬
subjected to controls on
plication, and the time of their which it has
actually never had
application are extensive enough,
any opportunity to express itself,
it is more than likely that they
but on which it is merely pre¬
would ultimately reach a point at
sumed to have expressed, itself,
which they would not only cease
because it has voted for a par¬
to
mitigate economic distortion, ticular candidate.
But how little
but would begin to produce
it knew of the ideas which any
taxation, the incidence of which
can
be foreseen to some degree,
Such a system of centralized
than by inflation, the ramifica¬
management of so many details of
tions of which cannot be easily
life also involves a concept of
forecast and planned, and which,
social life foreign to American
therefore, is likely to be the most tradition.
This, in itself, should
inequitable means. If the war ex¬ not
preclude adoption of the cen¬
penditures were only 10%, or per¬ tralized
concept, if it could be
haps even 20%, of the national shown that such a concept were
income it might be possible to
per se desirable.
But the law of
avoid
inflationary war finance
diminishing returns applies to en¬
altogether (if the necessary po¬
terprises which become too large.
litical action could be obtained
The
supervisory difficulties be¬
with sufficient promptness).
But come so
great as to more than off¬
when
the
war
effort
is
much
set any other gains. The reasons
greater, limiting facors appear. It for the existence and success of
is likely to be politically impos¬
the private capitalistic free com¬
sible to impose taxes on such a
petitive system seem to be basic
broad base
raise
to
to be
the
in
sums
required; and
actually impossible to raise
from the higher in¬
because it isn't there
money
come
would be necessary
as
the
groups,
sufficient
corporations
quantity,
,
from
impairing
A degree
or
without
their
working capital.
inflationary finance then ap¬
pears to be economically as well
as
politically unavoidable. The
of
evolution
ences
the
Its
It
realistic.
and
of
plans
of
represents an
human influ¬
many
rather than
any
success seems
the fruition
limited group.
to be due chiefly
+o its ability to express more
than
of
fully
other system the per¬
sonal desires, tastes, and abilities
of the greatest number of per¬
sons; and to determine the prac¬
tical
any
relativities
of
such
desires,
restraints of war-time
price ceil¬
then become
tastes, and abilities most sucings and rationing
cessfuly.
This ability to express
desirable, not only to mitigate tastes, desires and abilities, and to
bulges in the prices of particular determine their proper relativi¬
commodities which war-time
ditions
of
supply
and
con¬
demand
would otherwise produce, but also
to
restrain
the
speed
of general
itself
their
proper/ relativities,
usual circumstances.
A
cataclysm
breaks
>
great
as
under
as
war
normal.; business
down
time and interest
Most of their
spent in their
are
jobs, in work about the home, and
in the use of their earnings, to
satisfy personal tastes and desires
of
a
varied
very
nature.
Some
idea of the complexity of modern
tastes
and
desires
be
may
ob¬
tained merely
observing the great
products and services
offered and sold.
To regulate the
minutiae of these complex activi¬
variety
ties
can
of
would
be
mined
be
made
to
a
impossible.
and
sold
is
large
very
What
deter¬
extent
trial and error, by
expert experience and intimate
training in the minutiae of in¬
dustry, by day to day contact with
simply
by
individual
desires
and
abilities,
interrelationships, and produces
gross and obvious maladjustments
of supply and demand of such
magnitude and with such speed
ties, or to harmonize
practically operable relationships,
seems likely to determine the de¬
gree
of
success,
and
power
to
by
num-»
cannot be'
performed otherwise than by some a
central
of
sort
the
organization. But;
philosophy con-a
type of
one
ceives these functions to be those /..
be prac- /•
which cannot otherwise
other' -
The
administered.
tically
ary
economic forces cannot bring
a satisfactory adjustment in
any
reasonable length.. of time.
Even in normal times, laws have
which
conceivably be brought <r
about
under
can
represents
constant
a
growth .j or
of business
resents
control
not capable
are
of
any
central/ control.
Such matters include tariffs, fed¬
except
eral taxes, and the general over¬
all management of the volume of
the circulating medium to the ex¬
that
tent
is
it
capable
being
of
within- the
viduals
of
indi¬
range
which
abilities
and
tastes
supermanagement,
however se¬
lected or coming by its power, be¬
lieves to be desirable.
of social
sets
theories
These two
funda¬
are
different
mentally
proach to
inventions, discoveries and liew
thoughts which the future may
bring forth, or to substitute its
judgment as to the future for the
judgment of individuals.
But it
does assume that in a land of free
opportunity, these things will de¬
velop and grow as in the past. It
assumes a large measure of laissez
faire,
not. complete
but
-
laissez
fairer The other theories assume
that little faith is to be put in
human
ness
nature,
of the
or
in the correct¬
ultimate
individuals in the
decisions of
aggregate. They
all aspects of
believe that nearly
life must be directed for the peo¬
ple according to the limited ideas
of
small
Some
ment
overall
or
manage¬
according to
other, or simply
selected
some
which
will
tastes and
found
to
be
in
the
most
run
be
expressive
of
long
of
The
one'./
process
of -:
the " ;
upon
things in the past/
those
have
which
anythingy
evolution
ble. Like the
basis
be
to
control.
central
always been recognized as neces¬
sary: do govern many aspects . of
business conduct.
Certain aspects
great variety of intimate personal
an
limited
a
them
processes,
desires, and provides
are
conceives
formula
gradual
products,
There
that the unaided action of ordin¬
com¬
development of
There
and
mer¬ ing into power by force.
can be no question which type of
chandising methods.
Thus the
them into free economic system satisfies a philosophy is really liberal, or
and
order.
ber of functions which
;
in their ap¬
the problem of social
candidate might express; except organization, and in their atti¬
upon a very few matters!
These tudes towards human beings. The
realities can be very easily per¬ first assumes a high degree of
It recog¬
ceived by observing the personal faith in human nature:
the
infinite /- variety
of
activities of the usual family.
Its nizes
members spend a very small por¬ human desires, tastes and abilities.
tion of their time considering po¬ It does not believe that* it is pos¬
litical issues, in economic think¬ sible for any small group to fore¬
ing, or in union or other organ¬ tell and plan all the remarkable
izational activities.
ofr>
The relativities
been reached.
time, degree, place and detail re- "■
variety of tastes, desires, and; ceive some, but a varying degree//
abilities, or so well determine of, attention in all types of social/
justments
come.
confiscation, by dilut¬
ing the real value of existing
claims through inflation.
personal tastes, desires,V
completely. The ulti¬
all
wide^
•
From
•
.
a
,
3.
■
mate of either extreme has never.-;
j
arising from the war economist or politician, but pos¬ managed. There are, therefore, dif¬
have been righted, and a reason¬ sibly even closer. It is a day-to- ferent degrees of central manage¬
of the war, have been restrained. able
degree of economic balance day contact. Individuals vote him ment which are suitable to differ¬
The
volume
of private credits
times
and
conditions,
and
or
normalcy has been restored. in or out of business by their daily ent
created to carry such goods at
The regulation of interest rates, expenditures.
A political body or- there are also different aspects of
grossly distorted values has been prices, wages, and supplies in rea¬ committee of economists, or other business life, some of which can¬
small.
The wartime distortion of
be
regulated
or
managed
sonably normal peace times, or for planners, seeking to substitute its not
economic
interrelationships
has an indefinite
than
centrally,
and
period, is an im¬ or their judgment as to the multi¬ otherwise
thus been mitigated and the ap¬
some
of
which
are
not
at
all suiR
mense task, the detailed ramifica¬
tude of personal desires and abili¬
able
for
parent cost of the war itself has tions of which would be stagger¬ ties
/
central
management.
of
individuals,
and
their
been kept within narrower limits
ing; It would connote control of proper relativities, for the natural There is perhaps no brief satis¬
than would otherwise be possible.
almost every economic or business operation
of
economic
forces, factory general language by which
Although the cost of war to the aspect of life. Although some at¬ would be likely to find itself or the niceties of the proper position
Federal Government may be de¬ tempts to regulate the supply and themselves engaged in an under¬ of central governmental regula¬
ferred by borrowing, the cost to prices
of
certain
commodities, taking, the infinite detail and tion or management can be suc¬
the citizens of the country as a which for one reason or another complexity of which had not been cinctly stated for all times and
whole cannot be deferred to fu¬ were in a very bad situation dur¬ fully appreciated
at the begin¬ places, except to say that it is
limited.
ture generations by any financial ing the depression, enjoyed a lim¬
ning.
device whatever.
It is inevitably ited measure of success, others,
The fundamental objective of
No two persons are alike in all
paid about when it is incurred. such as the Stevenson rubber plan
tastes, desires and abilities.
In¬ the free competitive private cap¬
That this cannot be otherwise than and
the,, Brazilian
attempts to dividuals unite into groups for italistic system, of the social or¬
true will be readily seen when one
right the coffee situation by cen¬ limited special objectives, and
ip der, and of the republican politi¬
realizes that substantially all gov¬ tralized controls, have; not been
cal system which it generally con¬
a few limited matters act as ma¬
ernment
borrowings
are
made notably successful. All these meas¬
jorities. But in by far the greater notes, is the freest expression of
from its own citizens and that the
ures, moreover, were applied to number of their
activities, they the personal tastes, desires and
situations grossly out of adjust¬
money is merely taken from some
of
individuals
without
act as individuals or families, and abilities
pockets in the community by one ment; and there existed costs, as
purely personal tastes dictate. overall restraints not required to
device or another and put into prices, and other precedents of the
preserve order, peace, a reason¬
In such cases they act
as very
others.< The question is not when nearby past to serve as a guide,
small minorities, or even minori¬ able degree of honesty, and other
shall the cost of war be paid (that exactly as such precedents have
ties
of one.
When/ therefore, elementary principles of civilized
in inevitably concurrent with the existed as a guide for war-time
The fundamental con¬
minority rights are neglected or conduct.
expenditure), but how shall it be regulations. The broader the ap¬
repressed, there is actually little, cept/of Socialism, Communism,
paid. There are only three ways: plication of such regulations and if
Fascism
and
other
centrally
any, personal freedom left.
If
the longer they are enforced, the
1. From current taxation,
too
many affairs
are
centrally controlled societies is the re¬
less applicable the precedents be¬
2. From current savings, and
managed, even the majority finds striction of the personal desires,
mand for the moment,
nature,
most successful.'
proved to be desira-* *
common law, it rep-'
of
accumulation
an
real :/
life experiences over the ages.
is flexible, loose,
resourceful,
It/'
and,/:
nevertheless, powerfully cohesive./
The other represents the limited/
conceptions of a small group. The/.
one, is
reasonable and sensible,',
though not perfect/ as nothing'
human is perfect. The other repre-sents
to
simple logic carried v
extreme—a com-/
over
an
irrational
an
of the Accidental'/
particularlyr of
the' ;
German mind, as revealed both in*
the philosophy of Marx, and in that/
mon/failing
mind,
and
Hitler
of
Prussian
the
and
The
tary clique.
human
mili-.
accords with
the natural**
one
and
nature
laws. The other seeks to establish .v
its
laws.
own
this
In
connection,.-
it is interesting to note
that Rus-..
evolv-/
sia appears to be gradually
ing
towards
private
the
into
or
capitalistic system.
The
for
of
degree
which
is
the
necessary
clear
and
centralization
and bearable
simple purpose
for mit-;4
of winning the war, and
igating some of the grosser malad-.'
justments which arise therefrom,'
are
not suitable for the
ous
purposes
the
how
multifari-'
Now that it
peace.
be reasonably certain/
to
appears
of
will
war
end,
V
some
thought needs to be given to the/;
type of social order under which
we
will
desire
Shall
to
live
in
fu¬
the
objective, be the
fullest expression of personal de-z
sires, tastes and abilities of indi->1
viduals, or their restriction to the: r
ture.
limited
its
concepts
of
small'
some
overlordship of undue strength.
/ In
with
conclusion
respect
•
,
»;/
to '
centralized regulation of
economic-1
interrelationships
on
a
broad*v
scale, it may be said that they,
have proved to be useful during /
the war for mitigating the grosser' /
forms of maladjustment which re- A
suit from war, and that they will
prove useful on a gradually dK t
minishing scale in the immediate /
post-war years. But they are es¬
sentially
stop-gap or emergency/
not likely to be a sue-. * /
substitute for
the free,
measures,
cessful
operation
in
forces
economic
ordinary
of
time, or to be a.
particularly sensitive or satisfac¬
tory
instrument for
expressing./
the 'wide range of personal de-/v
peace
sires, tastes, and abilities,
or
for
determining their proper relativities, under more usual conditions:
The
desirable
ultimately
>
..
peace
time organization will undoubted¬
provide for a high degree of /
decentralization in most economic:
arid for free; :
ly
and business affairs,
flexible, and adaptable*prices and-
production f under
the Z- private, >
property system.
./'Most of
to
our
economic
ideas with respect
have
controls
borrowed from the British.
ful
as
certain
of these
*
been /
Use-,
measures
mitigating the grosser /
forms
of
maladjustment which *
arise from war, they cannot take '
are
for
the
place
of
modern
machines
made to such close tolerances
that
interchangeable, or
other advances which the
the parts are
many
British
must
make
to
maintain
Volume 160
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4312
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.
.
•'
•
,
<•••' '
..
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V
..
...
...
/v
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.....
r
•
,.
.
•,
..
position of industrial lead¬
in their own sphere, and
their position in the world. Cen¬
tralized schemes for limiting rub¬
ary
ership
such
correlation.
costs
were
ber production or liquidating the
terest costs, not only by reason
greater
or
textile industry may ease the pain
cyclical
of
reason
in
tion
help.
the
without
future
The
our
grandiose: economic
schemes in which she has shown
much interest in recent years,
so
and which have received so much
publicity, have not been, and will
not be, a successful substitute for
which all business
growth is really brought about.
by
processes
]
The
security
social
so-called
necessarily in¬
consistent with freedom for un¬
measures
limited
not
are
success
and
growth under
,
interest
from
time
a
influences,
of
the
currency
to
time
also
but
lack of
of
by
correlation
above. :
at
;■ £■/=: ■- !.y
apparent interest
no
con¬
ceived to be a rate which reflects
less than apparent in¬
mentioned
be
must
rate
cost, experience has'abundantly
proved that it would then be im¬
combination of influences, some
of
temporary nature and others
a
of longer term; and it is
that actual money rates
probable
tend
to
possible
in¬
give
undue
weight
possibilities of
divisive
clined
and
success,
are
to
the
to
the
of
schemes.
Since the degree of im¬
provement in the general stand¬
ard of living which is possible by
of industrial
means
difference
the
growth,
between
or
a
by
very
aggregate volume of bank depos¬
long time be very
different from true rates.
its
The level of actual interest rates
has
on the existing valu¬
capital assets.
If such
low enough for a long
bearing
a
ation
of
rates
are
also have
Interest rates
,
bear¬
a
though the government would ap¬
pear to pay no interest cost, there
that
of
all
paying the cost of
the
of
means
the issu¬
is by
far the most costly, not onl§- in
respect of direct expenses, but also
by reason of the terrific distortion
of the complex net work pf eco¬
nomic
interrelationships, and the
them to
that
shown
same
difficult^of
re¬
of financing
a
present condi¬
factors are
basic
at work, as they
fluences
be
can
precisely
redeemable paper.
unrealistic, either because it gives
too little weight to the variable
nature of the influence of money
dynasties
velopment of inherited
be prevented
tance taxes.
through inheri¬
-
be found
Nor will it ultimately
•
that the rental price of money can
forever be successfully
advan¬
artificial levels in accord¬
ceived
ance
or
maintained at precon¬
tageously
with any theory which fails
to give
consideration to all aspects
of mone¬
of the interrelationships
tary conditions and all other eco¬
nomic
of
forces.
determination
The
bank
in circula¬
the aggregate volume of
deposits and
currency
tion. is, in certain of its aspects,
one
of.that very.limited group
of
economic forces, which in so far
as
High
it may.be controlled or influ¬
enced at all, can: be controlled
in;
the nature of things only by cen¬
money
fective
means
war
by ir¬
rates are not an ef¬
of controlling over
of bank deposits and
circulation during a
expansion
currency
war,
financing
were
we
in
because the rate of govern¬
resulting
borrowings
which
cause
such over expansion are
determined by military necessi¬
ties, and not by the cost of bor¬
rowing. No one can tell with ab¬
solute certainly whether or not
ment
expenditures and
government
enough that a centralized effort to
course of money rates
chiefly
by
for
desirable,
approximation to give better re¬
sults, in combination with price
ceilings and rationing, than have
forces
attained
been
ever
financing
a
war
before,
in
of this relative
not exceed,
directly
or
indirectly,
certain specified ratios to the vol¬
it
But
should
remembered
be
that such
policies are designed for
a
specific purpose — a purpose
which
is
unusual, - and
of an
another to
or
reason
one
which
pression
desires
Although
viduals.
such
a
ment
or
distortion
interrelationships,
certain
that
it
will
it
of
economic
is
virtually
of gold held, and in
limited.
not
posits of most of the industrially
nations
was
somewhat
similarly
controlled,
and
was,
therefore, limited by laws or cus¬
tions must be taken into account,
which
in
waived.
wartimes
Without
have
doubt
to
there
be
is
ratios altered by any
coordinated
that the supply of
money
of all kinds,
including
bank deposits and currency, grew
in any such correlation.
Within
the
monetary
system,
even
in
system
peace
such
times, there were from time
to time inflationary and
4.
succeed
measured or
forecast, and because the tool is
not a good one for the job.
natural appropriate level of in¬
Even when applied to the gross
the maladjustments of the 1930s, such
toms relating the maximum vol¬ correct
relativity between the-de¬ measures did not work very well.
ume of bank deposits to the gold
mand for savings and the supply So far as one not a member of
reserve.
The
gold
reserve
or thereof.
Although it is possible the inner circle on monetary af¬
monetary base grew by small an¬ at times to say with some assur¬ fairs can ascertain,
no
specific
nual increments which were not, ance that a
higher or lower inter¬ limit in principle or theory then
however, correlated exactly with est rate would be more appro¬ existed to the extent to which the
'the long term rate of growth of priate
to
any
given conditions aggregate volume of bank deposits
the world's trade and production. than some other interest
rate, he and currency in circulation were
Nor were the required reserve would indeed be bold who be-, to be increased
by governmental
deflation¬
a
rates
terest
which
expresses
lieved that he could determine the
deficit
true interest rate by any
statistical
process either at any
the
proper
narticular
for
a
time
or
as
an
particular period.
unless perhaps
of a rise in the
general price level, so strong as
financing,
appearance
be definitely
average
to
Because
conceived
of cyclical variations in trade and
set
the
bv
limit,
inflationary, was
the
and
inner
circle
call for
a
to
re¬
production, and for other reasons,
versal
it. is
preconceived increase in the de¬
probable that the natural
or
of the
incidence
both on
They do not compete with
private business and discour¬
2.
They
of
policy;
or
unless
some
its expansion.
age
supply
which
toll
a
charge
service
a
other
or
be
can
for
direct
made
which
enable
them, not only to
all costs which private
enterprises commonly
bear
carry
other than
make
taxes, but also to
payments
ernment
which
in
the
to
lieu of the
gov¬
taxes
private
a
enterprise
and something by
profit to the gov¬
would pay,
of
way
a
ernment, as a contribution to
the
general
governmental
and other overhead, thus
reducing rather than increas¬
ing the penalties on private
war
industrial
3.
They
success.
so
designed with
respect to many other details
are
to
as
contribute to normalcy
than to create condi¬
rather
tions which
untenable in
are
'
the
future, unnatural,
or un¬
economic.
Projects
which
do
not
fulfill
these
requirements add to the
general overhead of government,
contribute
ment
of
to
the
unnatural
establish¬
economic
in¬
paid for by way of the
general
overhead,
but
which
might conceivably be timed in
part in such manner as to be of
assistance
in
from
recovery
de¬
pression, but experience seems to
indicate that the timing will not
be notably satisfactory.
Expendi¬
tures which may be necessary to
keep body and soul together un¬
der especially adverse conditions
will add to the general overhead,
and cannot be honestly alleged to
be
effective
business
stimulants.
They must rather be justified on
humanitarian
grounds,
and
re¬
activities.
which
expenditures were very
generally made for enter¬
prises which were in whole
or
in part free of taxation,
and which were seldom de¬
public and
production activities.
When we
get into the realm of indirect
gains, we are too far from the di¬
rect and tangible
results which
signed to operate on a fully
self-sustaining basis when all
the
The
a
cannot be accurately
a
expenditures garded as a necessary burden. It
were less likely to represent
is always customary to cite the in¬
the resumption of activity at direct benefits attributable to gov¬
economically strategic points ernmental enterprises as a justi¬
than corresponding expendi¬ fication for them.
There are also
tures
arising
from private indirect benefits from enterprises
the case
The volume of bank de¬
advanced
over
in
be
Such
covery.
cen¬
of maladjust¬
actual
original and subsequent
turnovers thereof, were dif¬
ferent than they would have
been
had
the expenditures
arisen from normal trade re¬
be
forms
expan¬
restric-
more
the
or
obvious
further
still
received the money,
rates
useful for financing the
in special emergencies for
purpose of mitigating gross
still
was
expenditures made by gov¬
ernment, and the persons who
be
period in normal or usual
emergency character.
It does not times, but will serve rather to dis¬
tort
normal
economic or business
.of. notes, also by requiring that follow that they can be taken as
'they be secured by specified types an expression of ideals for more interrelationships, because it nec¬
of
government bonds, the out¬ usual peacetime conditions.
For essarily connotes the exertion of
standing amount of which was such purposes, many considera¬ influences the effects of which
ume
3. The
of complicated personal
of people acting as indi¬
tralized effort to run money
them¬
in
were
tive.
,,
in turn the ex¬
are
costs
their
sion
rather than to permit
rates to express natural
money
times
1.
and
relief
of
effect
pro¬
terrelationships.
The projects
make-work pro¬ which can fulfill
these require¬
jects, labor policies, and in¬ ments are limited in
number, but
creasing governmental debts,
they do exist. Toll express high¬
invoked with the right hand,
ways and toll bridges are notable
was
the imposition with the
examples of projects which could
left hand of increased penal¬
be set up to meet these require¬
ties on business success in
ments.
Housing projects could be
the
form'
of
greatly
in¬
redesigned to meet them.
>
creased
graduated taxation.
There are unavoidable construc¬
Although the absolute levels tion
activities
of
government
of
such new penalties and
which are
to
partakes
attempts
and present rates appear to
reflect the ideal in a close enough
requiring
could
to manage the
commodity prices or the
of the nature of other
to run the price level,
the present rate of 2.50% is the the wage level, or other economic
best rate, or 3.50%, or something factors
according to the ideas
between, would be ideal. But it is which some limited group feels
range,
collateral
restraining factors, the
absence of any visible limits
thereby
rather certain that it is within this
de¬
selves
according to any theory which at¬
degree of business activity in specifxc terms and at specific times,
A
added
direct the
level of
whole
governmental
measures,
or because it fails to give
weight to other factors in the
business
situation.
It is clear
,
that the volume of deposits
2.
rates,
tempts
the
in
time
pression of the 1930s.
due
tralized power. In this country magnitude. It is also probable that' may
.in the more distant, past, such con¬ something approximating present war,
trol of the volume of deposits and j policies will be necessary for a the
currency
in circulation was ac¬ time after the war.
and
>
complished
first
consideration
as
tne future, but
really effective
stimulant only if they meet the
following conditions:
period dur¬
ing which many strong com¬
panies lost money for the
Much
situation.
business
a
of
will
sudden recession of late 1937
early 1938,
careful
a
use
at
cess
they
This uncer¬
tainty found expression in
the speed and degree of the
affecting the
think¬
fluence among many
,such measures be spread widely,
and that the steep gradation of
income taxes be avoided. The de¬
-can
The
properly for it.
and
local
\
jects to stimulate business in de¬
pressions may enjoy limited suc¬
expansion of the ag¬
tainty in the minds of busi¬
ness
men.
They felt that
they could not tell what the
future held forth and plan
line.* with
well as of
general theory, are not likely to
produce very effective results.
volume of deposits
and currency created uncer¬
rates are only one in¬
ing concerning monetary matters
tends to
be over-simplified and
if
and the
other condi¬
or
of
practical detail,
gregate
evalu¬
slower rate than would be found,
success
sult from
of
tinuation of deficit financing
in¬
these
of
none
out
It is reasonably clear that meas¬
of this sort which do not re¬
reasonable
very
results for all.
This requires that the burden of
and
greater than a similar
of the long-term rate
of growth of trade and production.
incomplete and imperfect
manner.
Experience has amply
a
always have been
in war-time, but at a very much
growth
also
therefore, exert a
Money rates,
under
^industrial
long-term rate of growth
aggregate in the past years
subsequent to the first world war,
powerful influence on many eco¬
nomic interrelationships, of which
we have mentioned only a few in
the
•would give the best
pro¬
of such
lower.
go
Even
unlimited opportunity for
circulation
greater than the
jected
on
cause
a war,
of irredeemable paper
ance
ing
tions
an
the
of pay
tions
ures
conception
of
their
Conse¬
ing on profits, because the ability proper long-term growth.
to borrow cheaply may lead to quently, bank deposits turned over
at the earliest possible moment. It such over-expansion of plant by at an abnormally low rate.
would be impossible to make price borrowing as to reduce the whole
Trade and production did not
ceilings and rationing effective. profit level, or difficulty in bor¬ respond to these monetary acts
rowing,
because
of
high
rates,
may
Prices would rise very strongly,
fully. All of the reasons may not
restrain
expansion be fully ascertainable, but some of
and the cost of war, on the same inordinately
and
tend
to
make
necessary
a
them were the following:
physical scale as now, would rise
wider margin of profit.
'
'•
rapidly
in
an
ever
ascending
1. The absence of any well un¬
Interest rates may have a bear¬
spiral in terms ^f dollars. Al¬
derstood limits to the con¬
possible to attract permanent sav¬
ings into such paper. Those who
received it would rush to spend it
war.
With
in
capital
assets,
which is much
greater than the value of any This aggregate was, therefore, ex¬
year's production and trade, may panded somewhat out of relation
to what might be
become grossly inflated.
considered a
and money
measures
in
currency
projection
means
security
increase
an
was
and
inequitable
social
and
which
ceivable that the market value of
ated, especially in advance. None
of these influences is a constant,
such
in
enough period of time, it is con¬
storing active business conditions
after the war. It is also the most
of
well formu¬
or
limits. The poli¬
pursued appear to have re¬
rates may for a
greatly increased
possible from any divisive
scheme, \it would appear to be
'rather obvious that a combination
clear
no
rates
conditions.
for
the inner
sulted
Is
ment
circle had
knew
even
der abnormal circumstances actual
dull year and a very
active year,
much greater tharj any" improve¬
outsider
No
and perhaps
cies
shown
limitation
severe
reached.
sure,
lated idea of any
Un¬
industrial
such measures do commonly favor
combination
rates under usual conditions.
degree of personal and corporate
private capi¬
system. But those primar¬
ily interested in the enactment of
talistic
business activity, or a
of both, was to be
the signal that the limit had been
of
gree
fluctuate around the true interest
commodity prices.
Low
rates may stimulate the borrowing
would - be concealed in this far of excessive sums to buy inven¬
more rapidly ascending spiral of
tories on a speculative basis, and
prices and costs of the war, a very thus cause price and wages to ad¬
heavy interest charge. Experience vance.
High rates may at times
in innumerable cases has clearly restrain
price ; rises or tend to
the free competitive
899
/'
.
,
,
True 'interest
petus which arises from new in¬ V The nature of the • differences
ventions and improved methods between true interest costs and
under a system in which such ad¬
apparent interest costs may be il¬
vances
are
allowed freedom of lustrated most
clearly by the fol¬
opportunity for unlimited rewards, lowing extreme considerations. If
if they can succeed in competition. our
government, instead of main¬
It is to this sort of development
taining moi^ey rates at such a
that England owes her industrial level that its bonds may be sold
position of the past, and it is to to return 2.50%, financed itself
this sort pf advance that she must by the issuance of irredeemable
really look-for the spark that will
enable her to maintain her posi¬
;
influences due to the lack of true
their
liquidation, but they do not
provide the positive forward im¬
.
costs, including an allowance
taxation, were considered.
They
frequently
caused the removal of private
in lieu of
'
property from the tax rolls,
and the burden of the loss of
taxes was thrown
back on
directly carry themselves,
private, and from all
alone
effective
are
stimulants
to
upward movement of the busi¬
ness cycle.
.
Just
as
the character of the gov¬
projects which will be
effective business stimu¬
by practical con¬
siderations of their actual applica¬
ernment
really
lants
is limited
tion in real life, so, too. the realis¬
In a tic effectiveness of deficit financ¬
sort of subsidy, ing and low money rates is lim¬
other
property owners.
word, some
direct or indirect,
was
in¬
and
consequently,
they tended to add to the
general overhead burden of
government instead of mak¬
volved,
If such financing results in
ited.
an
undue
mental
tion
of
increase
in
govern¬
in the distor¬
relationship between
borrowing,
the
the aggregate
volume of deposits
contribution to it. and/currency in circulation to
tended towards an other factors, in the distortion of
ever ascending spiral of defi¬
capital values to other conditions',
cits, governmental overhead in a spiral of ever-increasing gov¬
burden, and tax penalties.
ernmental overhead expense and
ing
a
Thus they
5. Some
rectly
projects penalties
government
competed
directly
with
or
private
indi¬
than
constructed imder
regulations which
and, perhaps^
enter¬ factors, then it will do
prise.
6. Some were
on success,
in the distortion of other economic
established
good.
more harm
On the other hand, a
few moderate deficits in years
(Continued on page 900)
of
times
Some Limitations Of Easy Money
As
indi¬
previously
have
cated, the success of the measures
taken to stimulate business in the
1930s was far from outstanding.
entire decade,
showed sufficient
the
Throughout
business never
normal
vitality to produce even a
demand for capital,
only
which
and it was the
vised indices are used.
To
extent at least this was an
some
after¬
of the 1920s.
clear enough that the
math of the policies
But it seems
neither period
were
ideal.
In both, we operated the
money system according to the¬
ories very different from those
behind the gold standard, and very
largely according to the cdurse of
commodity prices and the degree
of business activity. The relations
among the aggregate volume of
bank deposits and currency in cir¬
culation, money rates, commodity
prices, and the degree of business
activity are obviously not clear,
definite, fixed and uniform. They
of
policies
and
1. The existence of a monetary
ital
It
its having
been of
than
nature
the
a
2.
ternational accounts could be
i'
.
settled without the extension
of credit.
'
3. It provided a means by which
the
prices of international
commodities, and
tions
we
the
4.
It
vided for
matic
in
many
other historical
|that if
been
ume
vol¬
of bank deoosits then
already
^created. It is also a safe inference
i from historical precedent that a
idisorderly advance will be folJowed by a; disorderly recession.
These policies would.0 therefore,
have sent
circle
of
us
uos
around the
and
intensified degree.
i
The net
same
old
downs, but in
;
..
conclusion
fmm
thes°
:observations of the lim-'tations o*
.
present
financial
those
the
of
policies
1920s
and
the
and
1930s
is that the ore-1914 gold standard
produced
better
whole
peace
in
managed
money
results
times
was
too
inflexible
to
that
is
do
to
possible to
what
do
by
monetary
any
current
it
is
im¬
of
means
management.
Consequently it had a rather
higher degree of success in
distortion
avoiding
the
within
than our
Reactions were
consequently of shorter dur¬
system
money
later policies.
ation
and
less
severe,
when
the old gold standard system
and currency structure;
as a pool of gold
which, annual increments
could be made consciously to that
the other
from,
It
also
unconsciously gave
recognition to the exist-
some
of
■
ence
true
a
natural
or
level of interest rates.
.
this
too
none
It did
perfectly, but,
nevertheless, far better than
policies
which
distort
the
aggregate volume of bank de¬
posits
and
culation,
of gold
would be added. It is a
relatively simple matter to work
out an arrangement, whereby pa¬
per could, if necessary, be substi¬
tuted in part for gold in that
portion of the gold which would
as the reserve base of the
serve
currency
and
interest ' rates
bank
domestic
deposit
structure,
rency
so
within the money system,
saving
a
and
The' feature would
and
of
volume
the
rates
be
bank reserves by any
natural
a
corollary of
1.
or
tistical
and 2.
of
determination
final
relations.
or
;
money
member
purely sta¬
arithmetical
process.
Lord
and
the
in
cir¬
level
pending
of
the
cur¬
that this re¬
kept growing
known
no
derstood
cioles:
volume of member bank reserves
the
from
able
line
of
growth
of
the
gold base within reason¬
reserve
limits.
also give a
ibility
in
This
set-up would
greater degree of flex¬
the
matter
of gold
exports and imports, which could
take place in the period of read¬
justment after the war without
disturbing the
tary
course
defect
second
policies
sounder,
and
erations
than
of domestic
of
the
the
their
and
influence upon
as
savings
capital values.
based
more
govern the
tivity
prices
or
those
mone¬
broader,
basic consid¬
on
followed
in
degree of business ac¬
course of commodity
the
specifically—which
is
be¬
yond the capacity of any monetary
But it would seek
to
system.
avoid distortion within the
term rate of
mone¬
standard
was
for
ordinary
peace
growth of trade
lems of the future may be solved,
bank
,
other articles in the "Chronicle."
In
the
addition to
thecase.
difficulties
such
But
-
means
flexibility
international
the
in
gold supply during the period of
nnst-war
readjustment,
in exchange
fob our merchandise,
deplete
or
did not
else's gold
we
either take in everyone
gold
aggregate
our
supply beyond all reason.
The monetary set-up
suggested
in
forth
herein
and policy
were
once
put
printed form in a pam¬
2.
;
.
....
abundantly clear in the pamphlet
this
that
tions, and to devise changes which
will facilitate the attainment of
this objective.
It
the
.•'?
record
from
self-evident
almost
is
the
that
Of
course
policy in
the peace
times following
the first world
war was not ideal, and that it con¬
monetary
attention
its
centrated
too
ex¬
clusively upon unattainable tem¬
In
the
credit
quality
and
extended
amounts
for vari-
by better education of bank management,
but not by centralized con¬
ous purposes,
is
to
avoid
quali¬
tative distortion of the money
system.
not
cannot
It
so.
contracted
much
with
only
dis¬
turbing results. It may well be that
who governed money poli¬
be
growth of such reserves with the
long term rate of growth of our
trade and production, rather than
governing reserves so extensively
deny
claimed that giving primary
weight
in - reasonably
normal cies during those periods will deny
sought to govern, the
peace times to the rate of growth that. they
of bank reserves, and endeavoring course of commodity prices or the
of business activity by
to produce over a period a reason¬ degree
means.
But
they cannot
able coordination of the rate of such
by the
current temporary course
of commodity
activity
mere
prices and business
necessarily
involves
a
statistical
or
arithmetic
an-
after
tion
an
one
they
governed
their
these
two
considerations,
amounts
to
practice,
and
the
is
which
thing
same
only
a
upon
a
in
play on
words.
Fundamental policy to be
successful
over
a
longer period
based
be
must
broader,
infla¬
would not expect to be¬
bilities of the influences of mone¬
era
of
war
time
gin with a pre-war base, but with
in
that
monetary actions. chiefly by
own
and more realistic con¬
sideration of the practical possi¬
proach to money policy. Naturally
which
situation.
of
was
those
one
and production.
trol—that
Upon the whole, the pre-1914 gold
forth a single
simple formula by which all prob?
old
the years of peace since the first
World War.
It would not seek to
all influences of money rates
such
policy in
money
phlet under the title "Proposal for porary- objectives, because it
sought. to govern the course of
a Two Fund Gold System", which
gold standard system as operated encompassed many more details business activity and commodity
in this country—the lack of flexi¬ than are covered herein.
Criti¬ prices, which are volatile, through
bility to meet post peak special, cism indicated the conceptions its influence on the volume of
demands for credit would be cared stated
therein and herein were member bank reserves, which is a
for by the present rediscount and
thought by many to connote a slowly moving affair, the course
open market provisions.
merely statistical or arithmetical of which is generally gradually
We would then have the old administration of monetary pol¬ upwards, and which can be moved
gold standard system scientifically icy,; even though it was -made upward with ease, but can be very
The
or
factors
the
of
the past, or to set
deposit and cur¬
but rather to reorient and read¬
rency structure, which might tend
in time to produce some stabili¬ just the relative weights which
have
been
assigned to' various
zation of gold as a reserve base for
considerations in the past, in order
other countries. Helpful as Would
to
attain
better'overall results,
be
the
additional
flexibility,
and to' avoid the danger of pro¬
which the system would provide
with respect to the size of the ducing general economic disturb¬
ance rather than mitigating it.
It
gold exports and imports which
must be self-evident that even the
could be made without disturbing
the domestic monetary situation, policies suggested herein may at
times be impossible to carry out
it cannot be said that this single
The avoidance of ex¬
measure
would by any means perfectly.
treme qualitative distortion might',
solve all the collateral problems
for example, make some slight
of international finance after the
war.
In spite of this increased departure from the objective: of
flexibility, the broader aspects of avoiding quantitative distortion
those problems would
still re¬ necessary in the direction of re¬
main. Some ideas on these inter¬ stricting credit more firmly for the
national problems have been in momeht than would otherwise be
policy.
money
clearly un¬
or
prinwhich disregard
other
base of
reserve
formulation
,
standards
and
the
as
domestic
been used in connection with the
.
tary system itself, particularly in
development of certain pre¬
the following respects:
conceived price changes, or
1. In the aggregate volume of
the attainment of a specific
degree of business activity,' rbank deposits and currency
or
some
combination of the
v
in circulation, or quantitative
distortion in monetary fac¬
two, which are to be ascer¬
tors in relation to the long
tained in quantitative terms
by
used
objective is not to preclude con¬
sideration of any of the economic
evidence or influences which have
should be easily met with a little
previ¬
common sense in the application of
in accordance with the average
ously suggested for maintaining
long term rate of growth in our a degree of order in the solution the principles set forth. Nor was
trade and production for an in¬
of these broader problems, it is it meant to infer that the specific
definite period irrespective of the
believed that the increased ability detailed machinery suggested in
actual rate of gold discoveries; or
to export and import gold without the pamphlet was necessarily the
if such discoveries were too large
domestic
disturbance
could
be best that anyone could devise to
attain the same objectives. ■ If
a portion thereof could be added
positively used to good advantage
to the non-reserve or depositary
in bringing about, more orderly they can be attained in a better
gold fund for an indefinite period. conditions in the world, but* it way, that is all to the good. ? The
By the use of a uniform and low should not be used without regard main point is to avoid distortion
reserve requirement for member
to reasonable limitations, to be of the money machinery by at?
banks, the supply of gold would imposed
by policies with respect tempting to use it for purposes for
be found adequate to inaugurate
which it cannot be successfully
to international credits and other
and
continue
operation of this aspects of our international deal¬ used, or by operating it accord¬
system. Reserve policy would then
ings.
It is presumed that we ing to theories which fail to give
be expected to keep the depart¬
would take care through these due weight to all the direct and
ures of the line of growth of the
other controls that in providing indirect effects of monetary ac¬
base could be
redesigned, and connoting
in operation.
was
5.
than
the
of
prices or the degree
activity in speci¬
fic terms at specific times—
upon
meet
for
and
of business
the
rdate, in spite of the fact that it
periods,
expansion
on
theories of later
rates
money
govern
seen,
of turnover of the abnormal
less auto¬
or
credits, but it did not seek to
precedents
business
activity and prices would ulti¬
mately have advanced in a strong
'and disorderly manner, in part
upon the basis of new borrowings,
and in part upon the basis of a
mere resumption of a normal rate
peace
less automatic firm¬
or
'% over
any
have
accom¬
ing of them in the event of
end to the constant
tadditions to penalties on success
could
more
easing of
inactive
more
peace continued,
safe inference from
a
recognized
times by any money manage¬
ment. That is to say, it pro¬
(have been had
is
unconsciously
plishments possible in
par¬
ticular period, what the ultimate
'result of this development would
it
in
countries
the limitations of the
{subsequent history of this
■but
the condi¬
production
could be
kept in reasonable alignment.
created
war having come along,
cannot say on the basis of
their
of
various
;
less volatile
!
base of the domestic bank
deposit
and
serve
It provided a means by which
minor maladjustments in in¬
'
credit
;and
annual
confidence.
against capital values in the 1920s,
|
that
changes during any short pe¬
riod, or even over the years,
were most unlikely.
Conse¬
quently, it provided a basis
for forecasting and inspired
was
credits
known
was
changes would be small, and
that
altogether
inordinate
again
distorted on the high side, this
time by the abnormal creation of
governmental credits. Such cred¬
circulation
in
of
growth
not correlated
was
sion and contraction of credit.
against them.
Not only security
values, but the values of real es¬
tate and other capital assets were
affected.
Over-optimistic credits
were
also created in the foreign
field.
The readjustment of these
abnormalities was very painful.
In the late
1930s the aggregate
volume of bank deposits and cur¬
rency
above, the
categories,
two
of which would serve as the
production, but was influ¬ portion of the gold which would
the rate of discov¬ serve as the reserve base, and
which gold
ery of gold and the use of from
exports and
gold in the arts.
Neverthe¬ other withdrawals would be made,
less, it provided well under¬ and to which gold imports, new
stood limits to both expan¬
production and other payments
in the
unsound
of
one
base
into
segregated
reserve
grows
enced by
distortion of cap¬
and the creation of
amounts
which
-
exactly with the average long
rate of growth of trade and
a gross
-values,
quantitative distortion
connote
tative
the rate of
other economic
control, so that the exigencies of
the errors of government finance do not upset
policy in the 1920s and 1930s and it.. It. is also necessary to point
neither of these defects of the old out
that
the
system
outlined
gold standard system is insuper¬ would involve undertaking the
able. Our gold reserve could be
stabilization of the gold, supply
by
this
naturally the creation of dis¬
tortion within the money system
itself and in its relation to other
factors.
This distortion in turn
communicated itself to other fac¬
vast
does > the ex¬
Nor
business.
pression of these thoughts as to
money policy in broader language,
as the principle of avoiding quali¬
of capital assets,
less disturbing than
As
base
noted
very
tors, and found expression
and
and
deposits
ing distortion in the valuation
Even the first defect was
of 1930s.
small annual increments.
gold
principal result of these abortive
efforts to do the impossible was
.1920s in
These
I inter¬
policies.
later
pret them, were as follows:
money
rates, or through money rates and
deficit
financing,
is
obviously
doomed to failure at the start.
A
the
were
of bank deposits ana currency
through
deeper
with the
were
accord
fundamental concepts, as
of business activity by in¬
the course of such a
factor as the aggregate vol¬
circulation
in
more
realities of life in peace time than
fluencing
ume
'
ex-
themselves, thus avoid¬
of
volume
the
of
currency in
circulation to the volume of trade
bank r
Keynes has well said that
It is, of course, obvious that
production/ and consequently for a short time after the business neither
economics is an art not a science.
the revised gold standard
appeared at times to exert minor
The
conversion
of the principles
cycle begins to turn down from system nor any other well con¬
restrictive
or
moderately over- a
peak—a defect which produced ceived mbney system or policy set forth into specific terms of
stimulative influences. Subject to
concrete action would require the
money panics of short duration can
operate
effectively
unless
these minor qualifications which
from time to time, less damaging, government
finances are suffi¬ highest skill, experience and judg*
are capable of easy correction, its
however, than the bank troubles ciently
in
balance
and
under ment, if it is to be well done. The
specifically such
sensitive,
volatile, and rapidy moving busi¬
ness factors as prices and the de¬
in
press
relation
usual
the
change
permanently
might
and
variables. "An attempt to gov¬
slow
money
true interest rates could
left to chance, and was,
serve was
therefore, subject to the unpre¬
therefore, at
dictable, though not radical, in¬
produced money panics of fluence of
changes in the rate of
short duration, and in spite of the
gold discoveries, and (2) a lack
fact that the gold reserve did not
of flexibility in the matter
of
grow in exact correlation with the
meeting the peak demands for
average rate of growth of trade credit and currency which arise
ern
gree
the
were
times
decade in our history in
our
aggregate production
no appreciable net gain,
fundamental concepts
if the most optimistic re¬
showed
even
'
/nerely (1) that
growth of the basic gold re¬
use
of
'
policies of later years. The
of the system for peace
time
relation
the
,
'O';"; rates to factors other than the
degree of business activity
and commodity prices.
That
is to say, it would seek to
■!, provide a means by which
mand for credit and,
..
we
deeper and fuller consid¬
eration of realities than the peace
a
time
(Continued from page 899)
will not be post high point of the cycle de¬
adversity
especial
harmful.
.3. In
satisfactory, and based
more
upon
defects
And Collateral Theories
are
Thursday, August 31, 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
900
reflected
Nor
can
current
the
one
say
that
considering whether the growth
bank reserves was reasonably
deeper,
tary
ity
the
factors, than
and immediate
course
temporary
of commod¬
and business activity
The gold standard system
prices
alone.
in the pre-1914 era, in spite of its
long term rate, limited defects, was based upon
of growth of trade and industry, such considerations, and its de¬
no consideration should
be given fects can be easily removed, so
in
in accord with the
changes in habits or customs, or
any
other factors,
if
any,
which
far
'as
peace-time
concerned, in the
operation
manner
is
herein
/Volume
OUR
Slight Destine
duty Federal Reserve Board Reports REPORTER'S
Industrial Activity Continued
In
.
•
.
statistics for July and first half of August, stated
"Industrial production and employment declined
slightly, further in July.. Wholesale commodity ' prices generally
continued to show little change, while the cost of living increased
somewhat," said the Board's an-€>
■
——nouncement:- which
which went
went on
on
to!
nouncement/
to likely to exceed last year by 5%,
States, based on
Aug. 26 that:
on
,
.:,, J
:" ■ ■ - 1 - * . . y, ■ • /: • y
"Output at factories and mines
continued to decline slightly in
sa y:
.,
.if.
July and the Board's seasonally
adjusted index was 233% of the
1935-39 average.as
compared with
The decrease in in¬
235 in June.
production •: largely, f re¬
flected small declines in a number
dustrial
industries
of
s-
due
continued
to;
readjustments in the muni¬
and to manpower
shortages.
% .
/ ' Z
"Output of steel and of nonferrous« metals " declined
further in
minor
tions
;
program
.
•
s
July to levels respectively 8% and
20% below the high levels of. last
autumn.
A small decrease in ac¬
tivity in transportation equipment
industries reflected partly the inr
short¬
direct effects of manpower
in foundries and continued
readjustments in the shipbuilding
and aircraft industries. * In August
a
cutback in aircraft production
was announced which was expect¬
ed to result in the immediate re¬
ages
,
,
a record wheat
35% larger than last year. <
/ "Total
production of ;all feed
grains is estimated at 112 million
tons compared with
115 million
reflecting chiefly
crop
produced in 1943. While hay
production, except in the drought
tons
.
held the bollweevil in
Bank
Credit
five
weeks
of the
Fifth
the
"In
close
the
check.
following
War
Loan
Drive, loans by banks for purchas¬
ing and carrying U. S. Govern¬
ment securities declined sharply;
calls
war
on
loan
and
deposits
de¬
declined in the
by 2.7 billion
depositaries
five-week, period
Government deposits fell
by 2.2 billion during the same pe¬
riod and adjusted demand deposits
increased by 1.4 billions. Time debanks,
iposits
in¬
continued the, steady
.
been
has
that
crease
have
to
approached
in progress
see
continued in Au¬
higher level than a year
gust at a
ago.
•
*
-
' •.
•
"Following a slackened rate of
outflow during the war loan drive,
currency renewed its rapid out¬
flow and in the qext few weeks
increased at a rate of about 500
million dollars a month.
The re¬
what
Exchange
be done
can
under the
Exchange and
the Securities and Exchange Com¬
mission
operate
of the
they relate to capital
employed, and it is likely that
participation in a group market¬
ing one issue might tie up a suffi¬
cient amount of their capital to
as
keep them out of a participation
another
in
undertaking
the
at
time.
same
is
There
expectation in some
that the ' Exchange au¬
thorities may approach the SEC
with a
proposal that it act to
"space out" the marketing of the
quarters
potential new issues so as to avoid
such jam, since it is conceded
generally that "all hands" are
needed pretty much these days to
carry through an undertaking.
any
>
Z "Weekly average excess reserves
of
all
member 1 banks
declined
from
dollars
million
300
about
of grain/forest prod¬ banks."
miscellaneous freight,
partly by a small decrease
in coal
shipments.
•
//•/ 4/ /Z/:Z:Z'Z '
Agriculture
during July in
the East Central area has reduced
somewhat national, prospects for
corn, hay, and potatoes.
Aggre¬
gate crop production, however, is
.
"Dry
weather
things
issue
in
stand, the new
now
calendar
calls
the
for
sale
competition of six issues
in two days early next month,
namely September 11 and 12.
/
open
,
,
Note:
Editor's
Reserve
The
busi¬
July
was
activity
during
given
in Section. 3 of
"Chronicle", on page 972).
Commission,
Exchange
after
a
syndicate has successfully bid in
deal and, since participants in
a
the
winning syndicate must
"firm"
go
their share, capital in¬
on
volved would be
tied up in the
interim.
The
largest of these undertak¬
ings is that involving $100,000,000
of refunders
today's
.
Bright Possibilities
Portland
Giant
Cement
is
a
we
would in the worst
a
system,
eventuality
certain to avoid rad¬
ical monetary distortion, since the
avoidance of such distortion would
be virtually
be
its
first
objective,
and
■changes at any time made in
monetary base would be small
stock in
would be
helpful. It would, there¬
business future and
•v...: /..
Z Z-
forward
,
circular prepared by
Co.,
10
Post
Office
Lerner
Square,
Copies of this cir¬
our
.
a
&
according
had from Lerner &
dence in
step.
possibilities,
teresting
to
industry
an
bright future and offers in¬
cular may be
establish
fore, represent a distinct
a
all Boston, Mass.
the
and
This in. itself would
a high degree of confi¬
gradual.
with
Co.
upon
request and also a cir¬
cular on Riverside
Cement class A
which
on
Northern
Railway
Sept. 12. /
on
On the
the
Great
receive
will
readers '
were
Purchase range was 18-1814;
Low point, despite the reac¬
told that the Dow industrials,
then 149, would react to
147
then turn up
and
about tion,
again.
trans-
Specifically, this was
19 and
was
-V
■
f
same
$10,000,000 of first and refunding
3s, due 1974; Piilsbury Flour will
market an issue of $7,500,000 and
Empire District Electric will sell
$10,600,000 of bonds and 350,000
shares of common stock, the lat¬
held
now
&
Power
Service
Cities
by
Light Co.
:
-
f '••
\
dix, 384
Industry Involved
•>
'
;
• v.
/•
•
'
long of Benabout 43. Stop
2, now
remains
'
still
are
35.
Lockheed
;
was
bought at; 17 (now 1714),
stop 15. U. S. Steel came into
the list at 5814, rallied across
small beginnings of
"These
reconversion
industry
of
neace-time production
*
the
for
into
came
Allied
^
first
being only after a series of bitter
controversies in Washington. The last
Navy ZDepartments
and
War
fought
*
Mills
received
recommendation
week.
bought
It
h
its
e r e
be
wasto
between
2914
and
losing battle 3014.
During-the past few
the be¬
of reconversion at this days it sold down to 30. Stock
and
long
a
.
against permitting
ginnings
even
on the
verge of a good
advance that should carry it
seems
The stubborn tenacity with
time.
the
which
military
services
op¬
posed any relaxation of controls
up
emphasizes once more the neces¬
about five points.
Allied
Mills
*
like the War Production
can
mediate be¬
agency
Stop in
should/be
1 : /
1
sity of having in this country in
time
of
war
a
strong civilian ried at 28/
car¬
//:fc//:/;///;
which
Board
Rails and rail equipments
tween
the long-term peace re¬
quirements of the nation and the plus some of the specialty
short-term
imperatives
of
the steels are beginning to act as
war.
if
they
are
headed for higher
immediately.
In New Quarters
Z' George
R.
52
to
<
& Co., Inc.
Cooley
More next
the removal of their of¬
announce
fices
zZZ.:.'
Street, New
William
The telephone number,
Whitehall 4-3990, will remain un¬
York City.
changed.
Z
,
1
*
"
/■■■'
A
—Walter Whyte
z;Z■■/:/'■■//,;
\The
1
Trend Of Rail Earnings
Baird & Reuss, 1
Street, New York City, have
prepared an interesting discussion
entitled
"Interpretation of Nar¬
rowing Trend of Rail Earnings
Decline."
Copies of this discus¬
sion may be had from the firm
upon request.
McLaughlin,
views
article
time
Thursday, '///
4,*
do
expressed
not
coincide
Chronicle.
in
this
necessarily at
with
They
those
are
any
of
the
presented
as
those of the author only.]
Wall
Meanwhile
STREET
NEW YORK 5, N. Y.
Thursday.
on
Wednesday Bir¬
SUGAR
Co. will open
$10,000,000 new 30-year
first mortgage, bonds to provide
for retirement of a similar amount
of outstanding 4V2s, and Western
Union Telegraph's $24,600,000 re¬
financing will be on schedule on
Electric
mingham
bids
WALL
99
sched¬
Marketing is now
bonds.
LAMBORN & CO.
for
Exports—2 mports—Futures
'
: >i"
z/r-z- •; zZ:
>•'
<
DIgby 4-2727
Tuesday.
Commonwealth Edison Co.
Next Week Busy Period
In
advance
of
turnover
well
work is reported well
the huge refinancing
program
planned by the Com¬
of monwealth Edison Co. and its sub¬
Spade
the
foregoing
period, next week holds promise
a
in
excess
along
on
$100,000,000 in face amount.
sidiary,
The largest undertaking in that
interval, that projected by Ar¬
Northern Illinois.
&
Co., presents one of those
increasingly rare occasions when
acquired
involved through
have
underwriters
the
the- securities
rather than
negotiation,
in
com¬
petitive bidding.
'
This
000.000
series
due
$65.-
offering ^involves
of
Sept.
yield the
first
1,
3,/t%
mortgage
sinking
E,
fund
which
1864,
company
bonds,
will
funds, along
with
which the firm believes is an
out¬
$10,000,000 of bank loans
and general funds, for the re-
standing cement stock with a
div-
tiren^nt
i idend arrearage.
Apes Giles Problems
low frac¬
a
:
tion.
You
uled for next
day the Connecti¬
Light & Power Co. will sell
cut
of
low-priced
Under such
week
clear through the Securities and
mour
indicated.
thing was true
Zellerbach, which
just under 20 last week.
was
ZZ
Six Issues in Two Days
•As
ter
Board's statistical indexes of
ness
■
Same
for Crown
levels almost
bids
ucts^ and
offset
low.
buy
as a
60, failed to get that
60 and is now back to about
articles.
There will be where
you bought it.
Posi¬
many conflicting pressures
in a
tion remains
unchanged. Stop
part war-time and part peace¬
stands at 55.
time business economy.
Since it takes several days to
/-"Freight carloadings continued their ; peak during the war loan
to rise in July and were main¬ drive and amounted close to 1.1
tained at a high-level during the billion dollars in mid-August. The
first two weeks in August. There rate of decline was about the same
were
considerable
increases<, in at' reserve city and at county
shipments
at about
pleted
.
July, and have
if the hem, which I advised
even
plenty of stocks which
nothing or lower prices.
"Last
«■;
firms
These
strict rules
for more than a year.
cline in excess reserves.
stocks
(Continued from page 883)
according to
reported
concerned,
cially
current gossip, and are
weekly V- reporting
At
dollars.
million
usual in
For
higher there are
In Reconversion
Ex¬
change member firms are espe¬
lowest
Considerably less than is
show
Of
the
Stock
to relieve the situation.
demand
adjusted
dollars
a sulting drain on bank reserves and
jlevel
since the increase in required reserves
were met in part by purchases of
early 1935.
*
Distribution V
Government securities by the Re¬
/ "Department store sales declined serve Banks and in part by a de¬
160
month—the
still
"bunched"
are
together.
increased
all
around
near-term issues
closely
of
many
officials to
,
output and
metal mining were maintained in
large volume during July.- Coal
production dropped 5 % from the
Jevel of the preceding- month, .but
for the year through Aug. 12 was
approximately 8% above the cor¬
responding period of last year, re¬
flecting uninterrupted operations,
longer working hours, and a great
expansion of strip mining.
V v "So far this year thewalue of
construction contracts awarded, as
reported by the F. W. Dodge Corp.
for ? 37
States,- has
fluctuated
too
that
is
how¬
trouble,
The
subsequent Treasury expenditures
.
petroleum
market looks
ever,
y '"Production
of manufactured clined.
dairy products and meats, after
"In the five weeks from July 12
allowancefor /.seasonal
change,
through Aug. 16 loans to brokers
was maintained in July while put*
and dealers for purchasing and
put of other food . products de¬
carrying
Government
securities
clined slightly. ' Cotton. consump¬
declined 500 million
dollars to
tion showed little A change from
about the pre-drive level.
Loans
the rate of the last two months.
to others for purchasing and car¬
Activity in the rubber products
rying Government securities de¬
industry % continued
to/ decline
clined about the same amount, but
slightly in July and supplies of
are still considerably larger than
heavy truck and bus tires avail¬
before
the
drive.
Commercial
able for civilians during the third
loans
continued to
show little
quarter, were substantially below
-r
;
,
estimated needs.; Output of chem¬ change,./;".
"Treasury war-loan balances at
icals likewise continued to decline
"Crude
discriminate.
retailing, have not been too busy
through the summer months now
drawing to a close. >
ordinarily.
t
slightly.
individual
v
20,000 aircraft workers
posits and consequently required
gradual release of 100,000
reserves; the rapid outflow of cur¬
during the balance of this
rency
into circulation was re¬
;
' ; *
/
•
■ .
i. newed, and excess reserves de¬
more
to the smaller firms which do the
And they haven't been com¬
areas, has been large, it will pro¬
plaining too much about the rela¬
vide a smaller supply per animal
tive scarcity of new offerings par¬
unit than has been available in
ticularly through the August hot
any of the last six years.
spell. But now things are begin¬
"Crop prospects for most fruits ning to look up and much busi¬
and vegetables; except potatoes,
ness, in the way of new securities,
are better than last year.
Tobacco is coming rapidly to a boil after a
production is indicated as being long sojourn on the back of the
above average and cotton yields Stove,
,;./ y
■
•• • ,:;
/< '■ »• y
may be good as dry weather has
This would be welcome news
and the
year.
into
that looked
/
of
lease
lated
Tomorrow's Markets
higher and on the
Walter Whyte
reaction
could
be
acquired
Savs
without chasing.
Well, dur¬
(Continued from page 886)
ing the past few days, the
REPORT
glasses, the view is bullish. average managed to go down
Tape action
confirms this to the figure previously men¬
One
seldom
hears
any
com¬
practically
all
the
way. . Car-1 tioned. - One day on a low it
plaint when business in a given
line is good, but then it is the rying this observation to its even
reached
146.50.
But,
exception which proves the rule, logical .conclusion,
there, is despite the setback, the stocks
to recall an old adage.
Distribut¬
nothing to do but to buy. Of recommended didn't react in
ers of new securities, from the un¬
derwriters right on down through course, buying cannot be in¬ proportion.
In fact, Bethle¬
The Board of Governors of the Federal Reserve System in its
summary of general business and financial conditions in the United
/
901
CHRONICLE
THE COMMERCIAL & FINANCIAL
Number 4312
160
standing
of
$76,365,000 of out- r
series
B,
C
and
D
This
Public
shapes
Co.
Service
up
Z;
Z
as
of
ZZ
1856
H. Hentz & Co.
Z
Members
of the
one
largest projects under the Truth in
Securities Act, and may run to
more
Established
Z
Stock
Exchange
York
Curb
Exchange
Cotton
Exchange
York
Commodity
The companies are intrastate or¬
ganizations, however, and unless
the State Commission, or the SEC
'
York
New
than $150,000,000.
''
'
New
New
Chicago
Orleans
New
And
Exchange,;
Board
Cotton
other
of
Inc.
•
...
Trade
Exchange
Exchanges
should order the business to open
competition, it could as in the past
negotiated deal.
turn out to be a
Thus far
no
intimation has been
forthcoming to indicate the atti¬
tude of the company in the mat¬
ter, although in the past,
ness
its busi¬
has been negotiated directly
with its
own
bankers.
:
N.
f
Z
Y.
Cotton
Exchange Bldg.
NEW YORK 4, N. Y.
CHICAGO
.
DETROIT
1ENEVA
PITTSBURGH
SWITZERLAND
#
THE COMMERCIAL & FINANCIAL CHRONICLE
902
DIVIDEND NOTICES
NOTICES
DIVIDEND
Allied Chemical &
THE ATLANTIC REFINING CO.
61
Thursday, August 31, 1944 ^
the
US Place In World
Economy Topic
Of Conference Series To Be Opened hy NYU
Dye Corporation
Broadway, New York
NUMBER
DIVIDEND
34
August 29, 1944
Allied Chemical & Dye Corporation
has declared quarterly dividend No. 94
of One Dollar and Fifty Cents
Ata meeting of the Board
held August 28, 1944, a
dollar
one
the
on
($1)
share
per
was
j>er
declared
close of
business
Stock
Preferred
Cumulative
1944.
September 8,
W. C. KING, Secretary
Convertible 4% Series A
pany,
($1.50)
share on the Common Stock of the
Company, payable September 20, 1944,
to common stockholders of record at the
of Directors
dividend of
of the Com¬
payable November 1, 1944, to
stockholders of record at the close of
business October
be mailed.
5,1944. Checks will
CARBIDE
CARBON
CORPORATION
held
meeting of Directors
a
AND
Secretary
August 28,1944
At
UKION
w M_ O'CONNOR
Augu«t 22, 1944 in London, it was
Stock
each One Pound of Ordinary
free of tax.
Coupon No. 194 must
be used for Dividend.
London
at
29th
before
or
on
August
for payment
be in time
will
(75(f)
share
per
Seventy-five
on
cents
the outstanding
capital stock of this Corporation ha6
declared, payable
1944,
to stockholders of
October 2,
record
at
vhe
close of business September 1,1944.
british-american
August 22, 1944
dividend of
No.
45)
cents t$0.20) per share
Will be paid on September 10, 1944, to holders
of the outstanding Capital Stock of the Calumet
and
Hecla
Consolidated
Copper
Company
of
record at the close of business September 2,
1944.
Checks
will be mailed
frdm
the Old
Colony
H.
August
Mass.
ELLIOTT, Assistant Secretary,';
24,
Insurance
1944.
Commercial JnvestmentJSjst
corporaiion
A
quarterly dividend of 60 cents
share in
per
of COMMERCIAL INVESTMENT TRUST
CORPORATION, payable October
to stockholders
1,
1944,
of record at the close of busi¬
September 9,
ness
will not dose.
In Past 12 Months
made
public
Aug.
on
29
"The properties now under con¬
under
contract
erties
Of
sale.
this,
prop¬
and
$290,000,000
urban
properties,
chiefly
homes
and
apartment buildings.
"This
has
reduced
dollars
worth
tate taken
conditions
to
than
sold
depression
holdings
of
$950,000,000.
billion
two
es¬
distress
under
during the
present
mately
approxi¬
The
more
worth
dollars
largely rehabilitated and
was
E. I. du Pont de Nemours
improved to community standards
& Company
before being returned to individ¬
Wilmington, Delaware: August 21, 1044
ual
ownership."
The Board of Directors has declared this day a
share on the outstanding
Preferred Stock, payable October 25, 1944, to
a
stockholders of record at the close of business
10,
1944;
third "interim"
also $1.25
a
share,
as
on
Jac. Ducornau Joins
the
dividend for 1944, on the out-
Standing Common Stock, payable September 14,
NEW
on
W. F. RASKOB, Secretary
COMMON DIVIDEND
LA.—Jac. P.
ORLEANS,
Ducournau
has
joined
part-'
the
cournau
has
been
individual,
an
in
business
specializing
as
in
Louisiana and Mississippi munici¬
A dividend of 25c per
declared
payable
the
on
quarterly
Congress
September
pal bonds, for
many
"The
been
5,
1944.
Newark, N. J.
t
on
September
Albert J. Feldman
August 28, 1944
Stock
of
the
Secretary
&
interesting possibilities for
A dividend of 50(1 per share or two
per
cent
(2%)
on
of The Texas
clared this
par value of the shares
Company has been de¬
day, payable
October 2,
stockholders of record as shown
on
1944, to
by the books of the company, at the close
of business on September 1, 1944. The
stock transfer books will remain open.
I. H. Lindeman
July 28, 1944
Treasurer
Trust Co.
New York
of
investment, according to
randum issued
Co., '31
"exactly, in accord
was
underlying
basis
the
of
lend-lease program is the defense
of this country providing
in
Should End With War
the view expressed
on
Aug. 24 by
Washington
that day,-which
on
J. A. Krug
.
deduction
own
to
the
to
as
his
reason
for this alleged scientific poll's
showing the Republicans always
in the ascendancy — and a lastminute
bring
shift
in
stories
the
dis¬
within shooting
them
to
tance of the ultimate result."
of
both
National
own."
our
;
<
The President asserted that "un¬
Japan
United
States
"on
lend-lease
necessary
Germany,"
and
the
continue
should
whatever
scale
is
the combined
to make
that
:
V
Chairman 01 WPB
Lieut. Commander. J; A. Kriigi
appointed
was
on
Board[
Nelson's
M.
Donald
during
ab¬
in China.
sence
Mr.
of
Aug. 25 by Pres4
Acting Chair¬
as
of the War Production
man
Krug
the
was
appointed head
Power Branch
of OPM
in
1941, and held the same
position with WPB until he be¬
came
Deputy Director General
and head of the Distribution Bu-f
June,
in August,
reau
1942.
He
was apr
pointed director of the Office of
War Utilities in the
early part of
later that
appointed Pro-'
Vice-Chairman, which posir
he held until April, 1944. He
February,
month
gram
tions
The New York World-Telegram
til the unconditional surrender of
is vital to
is¬
was
Acting
ident Roosevelt
.
.
tor," the committee said:
"Everybody is entitled
for aid
countries whose defense
statement
Gallup
by its editorial offices here
absence
of Dr.
George
the
,
Aug. 28 stated that:
Directors of the Gallup poll, de¬
fending the validity of their poll
against attacks by the Democratic
those
to
1943,
was
and
also
left the WPB to accept a
sion
as
commis-i
Lieut. Commander in the
United States Navy, where he was
attached to the Office of the
der Secretary of the
Committee, said today
experience had shown that
Un-j
Navy.
Attractive Situations
criticism of the poll was to be ex¬
pected from either Republicans or 4 Durez Plastics & Chemicals and
Hotels Statler offer attractive pos¬
on which
poll showed in the lead." sibilities according to descriptive
circulars
issued
by % Doolittle,
overwhelming and as effective as
Pointing out that the Demo¬
we can make
it."
cratic Committee had chosen to Schoellkopf & Co., Liberty Bank
Without
commenting on the ignore President Roosevelt's cur¬ Building, Buffalo, N. Y., members
President's
language,
Connally rent ascendancy in the poll, the of the New York Stock Exchange.
told a reporter:
Copies of these interesting circu¬
Gallup directors charged that the
lars may be had from the firm
"Lend-lease was a military and
Democrats had misread the re¬
defense measure. When the war
upon request.
*
\ K
' >
sults of the latest Gallup report
with Germany and Japan comes
last Wednesday, the report which
to an end, lend-lease should be
Taxes And Reconversion *
found the President leading in 28
terminated."
v
:L
States with
286 electoral votes,
Hirsch, Lilienthal & Co., 25
striking power of all the United
Nations against our enemies as
Gallup Poll Allacked
By Dem. Committee
Democrats, "depending
side
our
Broadway, New York
outlining the situation
request from
be had
may
C.
E.
Uuter-
berg & Co.
Interesting Canadians
Charles King & Co., 61 Broad¬
New York City, members of
the Toronto Stock Exchange, have
prepared
Shares.
ers,
and
areas
upon
a
list of interesting post¬
equities
war
in
Canadian
Gold
The list of dividend pay¬
prospects
may
in
promising
be had from the firm
request.
Broad St., N. Y. City, members of
the New York
Stock Exchange
his Republican
and
electoral votes
poll
Aug. 27, made an attack
"validity" of the Gallup
said
dispatch
a
from
as
a
surprise
to Washington observers because
the Aug. 22 poll showed President
Roosevelt
having
leading
286
in
28
electoral
States
votes
Governor Thomas E. Dewey
and
in 20
with 245 electoral votes.
President Roosevelt the over¬
lead, the national committee's
"weekly clip sheet" took the poll
to task because, according to the
sheet, it showed that Mr. Dewey
"is sweeping the Middle West, is
vastly in the lead in the mountain
gave
all
has
New
York
and
Pennsylvania in the bag."
The
it
a
national
committee
called
"curious coincidence" that in
Aug., 1936, the
same poll showed
Governor Alfred M. Landon lead¬
ing with
"271
electoral
votes
against Roosevelt's
measly
259
votes."
won
It
in
whereas
Mr.
Novmber
in
a
-
Roosevelt
landslide.
also
Wall Street
a
Canyon that's narrow and deep,
That's just wide enough for one little jeep. *
Oh this
was
a cow
path, old-timers will tell,
A pasture
and field with farmhouse and well!
Then cattle were grazing, so quiet and still,
No
one
was
about
hill.
brought a change,
rushing now over this range.
on
valley
thousands
are
From Jersey, from
Newark, from Brooklyn, from Queens,
Disgorged by the subway in colorful streams.
While the walls of this canyon are towering high,
It's not scenic
beauty that draws people nigh.
it's hectic trading—
fading! ;
It's stocks and it's bonds,
The bulls
are
still here, but the cows are
New York has its wolves and "The Street" has its
find out when buying your shares!
;
The farmer has left, but there's still that old hick
Will buy Brooklyn
Bridge
while
gold brick!
those fabulous men,
business again and again.
So gone is the farmer from that winding street,
R^-echoing now with thousands of feet.
While telephone bells and while buzzers jingle,
That brought all those famous,
The tycoons to
The
teletype ticks, their noises mingle.
the hum and the glow,
The
Willkie
or any
and the cars and the once private trains
Have gone for duration just like the planes
The yachts
States with 304 votes "leaned" to¬
L.
bears,
As you may
For this is the pulse-beat,
Wendell
or
But all this is diff'rent, the years
castigated the poll for
showing in August,
1940, that
ward
other
pared
that the
claims
New York has
And
Ignoring the fact that the poll
and
Presidential rival.
the
"Herald Tribune" Washington of¬
fice on Aug. 27, which added:
came
in 20
exchanges, have pre¬
an . interesting
study of
poll taxes and reconversion.
Copies
had shown Gov. Dewey "Sweep¬ may be had from the firm upon
ing the Middle West, vastly in request.
Committee's
on
the
on
States
way,
States for Gov. Thomas E. Dewey,
In refutation of the Democratic
The Democratic National Com¬
mittee
a memo¬
by C. E. Unterberg
Copies of this memorandum
upon
168th Consecutive Dividend paid
by The Texas Company and its
predecessor.
National
Bank
City.
COMPANY
Public
offers
&
THE TEXAS
years.
Public National Attractive
15,
Checks will be mailed.
to
report
concept of lend-lease."
The attack
1944, to stockholders of record at
the close of business
•
The
sued
Gallup, who is in Canada.
.
lend-lease
with my
com¬
has
was
war,
George said he thought the im¬
plications of President Roosevelt's
message
yesterday submitting a
ford, Whitney Building. Mr. Du¬
A. HOLLANDER & SON, INC.
stock
*
-
.
against 245
nership of White, Hattier & San¬
mon
popula¬
.
White Haltier Sanford
usiness
J944,
to stockholders
record at the close of
August 28, of1944.
share
world
aid to other countries must be brought to an
and defense measures.
three
the
of real
by the life insur¬
over
companies
ance
August 24, J944,
of
$250,000,000 represents farm
billion
JOHN I. SNYDER, Treasurer.
October
and
ments.
Chairman
and which also said:
1944. The transfer books
Checks will he mailed.
dividend of $1.12)4
Fair-
Pratt
said Associated Press dispatches from
also had the following to say:
Companies
000, making an aggregate of $540,000,000 either sold outright or
the Common Stock
on
Henry
Dr.
at the close of the
end
tract of sale amount to $200,000,-
Common Stock, Dividend
cash has been declared
"White Plan for Currency Stabil¬
Committee declares."
immigration
tion movements, and international
cartels and private trade agree
Connally, Democrat,^
:•
/
.v.■■■:
Texas, and Senator George, Demo- , only 227^ "leaned"
toward Mr.
More than $340,000,000 of real crat,
Georgia, who piloted the Roosevelt, whereas the November
estate has been sold by the U. S. lend-lease program to Senate pas¬ vote gave Mr. Roosevelt 449 elec¬
life insurance companies in the sage during his chairmanship of toral votes and Mr. Willkie 82.
Referring to the poll's manager
past 12 months, according to the the comittee, shared belief that its
Institute of Life Insurance in a use is limited strictly to military as "the crystal ball prognosticarelease
^
the
of
author
top-ranking members of the Senate's Foreign Relations Committee,
twenty
Company, Boston,
J.
Boston,
and
Conference
That Lend-Lease
Realty Sales By Life
HECLA CONSOLIDATED
COPPER COMPANY
Dividend
A
delegation at the Bretton Woods
Senators Say Lend-Leass
AND
CALUMET
States
"America's Place
ization;"
tobacco company, limited
Mountain
the
Pennsylvania and New
York in the bag, the Gallup direc¬
tors,
referring
to
their
last
Wednesday report, declared in a
will open a
ROBERT W. WHITE, Vice-President
transferees.
of dividend to
A cash dividend of
been
received in. order
All transfers
033
September 30th
decided to pay on
Interim Dividend of Ten Pence for
in
with
on Postwar Reconstruction at New York University
statement issued from their local
series of weekly conferences beginning September 27 on editorial offices:
i
in the World Economy," Dr. Arnold J. Zurcher,
"We should like to point out for"
director of the Institute, has announced.
the record that our first pub»Among the economists, social scientists, and public officials who lished
report on the 48 States, re¬
will participate in the conference are Dr. Herbert Feis, formerly con¬
leased
last
Wednesday, showed
sultant on economic problems in<S>President Roosevelt ahead.
Also
the State Department and an au¬ child,
population 4 expert; ; and
Mr. Dewey was not shown Vastly
thority on international finance; H. W. Chamberlin, former Mos¬ in the
lead'
in
the
Mountain
Dr. Corwin D. Edwards, expert on cow correspondent for the "Chris¬
States.
The poll put five of the
cartels, until recently attached to tian Science Monitor" and author
eight
Mountain States in
Mn.
the State Department; Dr. John of many works on the Russian
Roosevelt's column, three in Mr.'
B.
Condliffe, economist on the economic system.
Dewey's. As for New York, the
Individual meetings will con¬
faculties of Yale University and
poll reported Mr. Dewey leading
the University of California and sider such questions as America's
there with 52%. That is hardly
author of "Agenda for the Post¬ international economic policy, the
■in th6 bag' for him.
future
of
the
nation's
war World."
foreign
"Moreover," the statement
Also, Dr. Marcus Nadler, As¬ trade, the investment of American
stressed, "the poll showed Penn*
sistant Director of the Institute of capital abroad, the gold standard,
sylvania leaning Democratic, not
International Finance; Harry D. .the possible use of stabilization
Republican las
the Democratic
White, head of the United States funds and an international bank,
The Institute
PREFERRED
lead
and
glamorous life that makes Wall Street
go!
—E. Roberts
Langenau.
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4312
160
903
i'
tures
Calendar Of New Security Flotations
stock
offerings
be
CORPORATION
ARTLOOM
•
registration
statement
of
stock
common
a
to
t
„
which
.
;
it
to
right
the
will
estimated
is
15,
1944.
derwriters.
working capital.
Stroud & Co. "are un¬
Filed Aug. 1, 1944.
Details in
"Chronicle," Aug. 10, 1944.
holders
statement
stock
'common
78,834
stockholders.
used
to
v
augment working
24,
Aug.
will
16, 1944. Details in "Chronicle,"
TUESDAY, SEPT. 5
THE
Van Alstyne, Noel / & Co.,
Schoellkopf
& Co.,
Hemphill,
and Schoellkopf Hutton &
.
NARRAGANSETT
has filed
a
500,000,
first
Aug.
preferred stock (par $50),
Part of the
proceeds will be. applied to the retirement
of
$1,558,000
10-year
4 V2 %
convertible
sinking fund debentures.
Balance will be
; available for expenditures on plant or for
other corporate purposes.Of the ; 70,000
shares
were
stock
registered, 66,506
holders- of common
18
for
of
16
of
of
stock
common
Dillon
•man.
■arid
E,
W.
,1944%
Merrill Lynch, Pierce,
&
&
Co.
.
for
Fen-
.
;
,
each
m
and
shares
of
class
A
Sub¬
5, shares of
class A stock
class
of
B
v
on
a
supplied by amendment.
Proceeds plus whatever general funds are
necessary will be applied to the redemp¬
tion on Dec. l, 1944 of $25,000,000 25-year
are
..
writers.
S-l.
for
$65,000,000
3%%,' sinking
first
has
a;
for issuance upon conversion of the deben¬
tures at any time" pribr to Bept.
at rate of 12 Yu shares of common
$100
for. each
Underwriters
are
debentures.
in
Cruttenden
&
Bankamerica
$200,000;
Co.,
16,. 1954
-// i
Offered-Aug. 30 at 104.4877 and interest
by White," Weld & Co.; Shields & Co.,
Kidder, Peabody & Co., Hallgarten & Co.,'
•
•
associates.
and
-
,
♦
;
,
A.
Edwards
G.
■
Dempsey-Detiner ] &
First
$100,000;
& Co.,
$100,000;
The
$100,000;
Co., $100,000-; First Securities
Co.,
Company of Lincoln,
Trust
Kneeland
&
public at the same priceNet proceeds, estimated afc$1,159,029, ,ard
to be used for expansion purposes and as
an addition to working capital.
Filed Aug.
offered
18,
issues
of
days
in
normal
course
sec. :-a/
■■
become effective,
un¬
at the discretion of the
less accelerated
viaaa;.aa
.
Details in "Chronicle," Aug. 24,
"
.
-
,
filed
registration statement for 120,000 shares
of $4.60 dividend preferred stock.
Address—362 Liberty Avenue, Beaumont,
•-
Texas;> 340 Florida Street,, Baton Rouge 2,
La.
;i•/■
UTILITIES CO. has
GULF STATES
a
»
Business—^Generates
sells
and
electric
'/>*.•' '
j
Offering-r-rTo be offered in exchange for
old
$6 dividend preferred stock and old
$5,50
dividend preferred stock plus = anamount of Cash
(to be named by amend¬
ment); and -accrued dividends.
Net pro¬
ceeds from sale of any new preferred not
exchanged and from sale of 20,006 addi¬
tional shares to be used (1) to provide cash
energy,
THURSDAY, AUG. 31
THE
EDWARD
G.
BUDD
MANUFAC¬
state-
TURING CO. has filed a registration
Jment for 95,868 shares (no par) $5 cumu¬
lative prior preferred stock of which 60,000
-shares are to be publicly offered and 35,868
are to be continued to be offered to hold¬
er's of 7% cumulative preferred stock for
1
exchange and the basis of 2 shares of $5
cumulative
prior preferred for each one
share of 7%- -cumulative, preferred.
Pro¬
ceeds will be used to redeem that portion
preferred stock not converted to
of the
•
107.71 or
dividends from Nov. 1,
If there is no further exchange of
•7%
preferred the cost of redemption of
17,934 shares of such stock will be $3,725,$5 cumulative prior preferred at
'$110
;
accrued
plus
1930.
>071.
Proceeds in excess of amount rei quired
to redeem 7% stock will be used
for
working 'capital.
No
underwriters
> named.
Filed Aug. 12, 1944.
Details in
OLD
has filed
a
shares of
:
lative
STAR
DISTILLING
I
CORP.
registration statement for 5,000
preferred stock, non-cumunon-participating.
Price
to
$100
and
public will be $110 per share; proceeds to
company $100.
Proceds will be used for
construction of distillery, $250,000; working
No underwriter named,
i Filed Aug. 14, 1944. Details in "Chronicle,"
Aug. 24, 1944.
capital,
for exchange offer; (2) to retire
in bank loans; >(3) -for other
;■///>;;
'.'.'■/■:v:
$1,000,000
t Underwriting—Preferred
Proceeds-—Proceeds
SUNDAY, SEPT. 3
SOLAR
a
shares
not
-
taken
in
MANUFACTURING
registration
of
series
"A"
statement
CORP-
for
has
90,000
convertible preferred
used
be
to
re¬
mortgage, 3l/2% bonds, series F,
1966, and. for purchase. at 125 of an
principal amount of the com¬
pany's, first and refunding 7% bonds series
A, due 1351.
EMPIRE
filed
&
Co.
and
Chas.
Registration Statement No. 2-5460. Form
A-2.
(8-24-44).
'
INC.,
MILLS,
PILLSBURY
has
filed
a
registration statement for 75,000 shares of
(no par).
Avenue
South,
cumulative preferred stock
Address — 608
Second
/
Minn.
.
miller.
V' Offering—Offering
rate
to
be
filed
Proceeds—For
'
-
price,
1;
,,
and
by amendment.
redemption of
^
interest
$4,475,000
bonds,
due Oct. 1, 1953,
for working capital.
Underwriters—Goldmari, Sachs* & Co.,
first mortgage
balance
Jaffray & Hopwood.
•'
Registration Statement No. 2-5458. Form
Piper,
S-l.
(8-23-44).
...
has filed a registra¬
$2,000,000,, 15-year, 5%,
convertible
debentures.
Debentures
will
carry .detachable stock purchase warrants
entitling bearer to purchase 40 shares of
common
stock
for
each $1,000- deben¬
TEXTRON,
INC.,
rates
of
STEVENS
INC. has filed a registration statement for
40,000 shares of capital stock in an invest¬
trust.
ment
•
Address—10
9, Mass.
Post
Office
Boston
Square,
by
trust.
Offering—At market plus
Proceeds—For
premium.
1','c
DISTRICT
and
The shares of stock
of
account
Co.
ceived
Cities
The
net
Service
Power
proceeds
to
by
Empire District from
bonds, together with the
the
ceeds from
be
We
&
pro¬
lias
be
applied
atv 101%
of
the
to
$10,044,900
re¬
first
mortgage and
refunding bonds, 5%
due
1952, and to the redemption
at
March
1,
105 of $851,200 of Ozark
Co.
series,
to
Power & Light
acquire
by
below
present
offering
mined
or
dates
or
list
a
of
cf
par,
for
the
the
Empire
bonds
and
competitive
mission's
District
stock
bidding
competitive
Electric
will
have
ago,
not
unknown
are
be
amendment.
"Chronicle,"
stock
tive
Names
the
purchase
vator,
with
public
Details
to
INSURANCE
house.
8,
a
stockholders
million
million
Details
in
will
be
surplus
and
sold
for
Co.
to
added
May
ele*
bushel
head
bushel
Filed Aug.
"Chronicle," Aug,
"V7,
1944. "
funds.
to
WHEEL CO. has
filed
n
registratioh statement for 71,590 shares of
stock
common
(par
The
$4).
shares
are
issued; arid outstanding and do not represfepfc i new' financing • by
the
company
12,500 shares may be reoffered at private
^ale at $6 per share and 26,323 shares are
to be offered to public at price to be filed
by amendment.
Brailsford & Co., and C.
O.
Kalman,. Paul R. Doels and Edwin
White are considered to be principal un¬
derwriters.
Filed July 27, 1944.
Detail?
in "Chronicle," Aug. 3, 1944.
BIRMINGHAM ELECTRIC CO. has filed
a
registration
statement
for
$10,000,000
mortgage bonds, series due 1974, In¬
rate
will
be
supplied by post-effec¬
tive amendment.
Price to the public will
be
filed
by
post-effective
amendment
Company is a subsidiary of National Pow*i
& Light Co. which is the sole owner of th<
545,610 shares of its outstanding commor
stock.
The
such
net
together
proceeds,
additional
cash
from
its
witl
genera
funds
the
as may be required, will be used foi
redemption, at 101 and accrued inter
est,
all, of the
of
company's first and
re
funding mortgage gold bonds, 4'/a% series
1968,
outstanding in
the principa
due
amount
of
offered
by
sale
$10,000,000.
the
pursuant
The bonds will be
for
company
to
the
competitive
Commission's
com
UNION
GAS
June
CO.
29
$12,000,000 debentures and
the concurrent
issuance
and
of
general
mortgage
private
sale
sinking
"Chronicle,-'
POWER
statement
filed
CORP.
for
bonds,
3%%
series, due Aug. 1, 1969.
Paige, President of the company,
1944 that company hao
entered into a firm agreement with Halsey,
Stuart & Co., Inc., for the sale of the pro¬
posed $30,000,000 of mortgage bonds and
$12,000,000 of debentures.
Halsey, Stuart
& Co., Inc., has agreed to pay not less
C.
E.
announced Aug/3,
than
less
issues
to
the
for
100
than
providing
100
the
bonds
for
3y2S
as
not
and
debentures
the
as
4s,
both
will submit
competitive bidding.
company
bonds
and
to
declared
bentures
to
amendment
company proposes
000
general
the
thrown
be
.
filed
*
of
companies
$30,000,000
insurance
that both
should
petitive bidding/,
In
the
sell
bonds and de¬
open
to
com¬
for
June
SEC
Aug.
10
mortgage
sinking
fund
bonds
registration
in five
WHOLESALE
statement
debenture
for
notes,
per
annum
ten years from
and
Notes are to be sold
stockholders.
increase
at their
Proceeds
working
loans.
will
capital
Filed
June
and
12,
June 22.
be
re¬
1944.
1944.
SUGAR
shares
CUBA.—696,702
of
CO.
common
($6.50 par), U. S. currency.
chase
8
Of shrs.
underwriters have agreed to pur¬
$1,663,500 of first mortgage (col¬
convertible bonds of company,
vert
cumu
the
1,
1951,
by
owned
National City
Underwriters propose to
these bonds at
or
con¬
prior to closing and
252,852 shares of common stock which
are
received
by
the
underwriters
on
such
conversion, together with the 443,850 shrs.
previously mentioned, will make up the
total stock to
&
,
Co.,
Inc.,
be offered,
N.
Filed Mar 29,
April 6,
share $3,163,820
per
Oct.
Bank, N. Y.
regis
a
shares
40,000
Y„
1944.
Harriman Ripley
principal underwriter.
Details in "Chronicle,"
1944.
cumula
redemption
certain
of
of
tit
provided in recap plan of tha
as
]
to Genera
shares 0
56 preferred of Georgia Poiwer & Light Co
$75,600, and expenses $80,000, total $5,
031,270.
Stock is to be offered for sale b);
the
company
pursuant
to
Commission'*
competitive bidding Rule U-50, and name
of underwriters will be filed by post-effec
$1,400,000;
company
Gas
Electric
&
payment
for
Corp.
4,200
President
conference
Roosevelt
at
a
press
Aug. 25 discussed
name
the
dividend
rate
on
the
stock; the
prospects
that
the United
Filed July 21, 1944. Details in "Chronicle,'
States might use its favorable in¬
July 27, 1944.
ternational trade position to ex¬
GERMANTOWN FIRE INSURANCE CO
tend post-war credits to
needy
has filed a registration statement for 50,
nations wanting American goods,
000 shares of common stock, $20 par, an
voting trust certificates for said stock.; according to an Associated Press
amendment.
tive
The
succesful
bidder
wil
Policyholders of Mutual Fire Insurance 0 >
are
to
have'
pre-emptlv ;
Germantown
subscribe for the common stocl:
at
$20 per share in
proportion to th<
respective premiums paid by them upoi;
insurance policies issued by Mutual.
Vot
ing trust certificates representing share
not subscribed will be offered to the gen
rights
public at the same price.
All stock
holders will be asked to deposit shares ii
the
voting
Bioren
trust for a period of 10 year*
Co.
&
May
29,
June
8,
are
Details
1944.
1944.
Filei
underwriters.
"Chronicle,'
in
filed
has
a
registration
shares of
13,506
to
went on
would
depend
statement foi
(no par)
upon
of credits
the economic
status of individual countries and
that such credits could be
ized by
author¬
amending rather than re¬
pealing the Johnson Act forbid¬
ding Government loans to default¬
ers
on
first World War debts to
States.
The matter was
BREWERY
stock
common
shares are issued and
say:
He said the question
the United
WESTERN
GRIESEDIECK
CO.
on
dispatch from Washington which
to
eral
]/'
raised by; a re¬
the recent Lend-
porter who cited
Congress showing
cash exports in the last
Lease report to
outstanding anc
American
new
financing by thr
four years have far exceeded the
to the public is $33 per
share,
Edward D, Jones & Co., St. Louis
annual average of less than $2,is named principal underwriter. Filed Jul?
800,000,000 in the four pre-war
17, 1944. - Details in "Chronicle," July 27
years, 1935-38. He wanted to know
1944.
not
do
represent
Price
company.
>•/;>;. v--;
MANUFACTURING
HAMILTON
filed
a
shares
will be
Proceeds
used
(par
$10).
and retire on or before Jan.
at
103,
first
CO.
to re¬
1, 1945
plus accrued interest, $300,000 5%
fund bonds and at
mortgage sinking
of par value, plus accrued dividends,
105%
7%
cumulative first
consisting of 838 shares.
Underwriters
are
Straus
Securities Co.,
Chicago, 19,498 shares and Loewi & Co.,
Milwaukee, 19,498 shares.
Filed Aug. 9,
1944. Details in "Chronicle," Aug. 17, 1944.
of
all
outstanding
preferred
stock
HANCHETT
filed
MANUFACTURING
CO.
h&i
registration statement for $450,00(
convertible
5V2V0
bonds
series A, maturing serially from 1945
to
1964, and 45,000 shares of common stock
a
first
mortgage
The
par).
issue
upon
shares
conversion
mortgage convertible
is
P.
W.
Brooks
&
are
of
this
whether
has
registration statement for 38,996
of preferential participating stock
deem
($1
.
with
the Issuance of $30,000,-
1944.
preferred at $52.50 per share $311,850
used
securities
previously had denied the company
privately
by
the
sup¬
registered,
443,850
are
outstanding
and
by the National City Bank, N. Y.
The New York State Public Service Com¬
mission
29,
July
COOPERATIVE
a
bank
Several
Muj
stock
preferred
tive preferred at $110
$30,000,000
fund
price to
will be
owned
Mutua1
Filed
redemption of 5,940 shares of 7%
The
BROGKLYN
to
stock
petitive bidding Rule U-50,
The names of
the
underwriters
will
be
filed
by posteffective amendment.
Filed July 22, 1944
Details in "Chronicle," July 27, 1944.
rate
Filed
filed
be
offering
dividend
value, only
OF
(par/$100),
Thi
iividend rate will be supplied by amend¬
ment.
Net proceds from the sale of the
new
preferred stock, together with addl
tional funds from the treasury to the ex
tent required, are to be applied as follows
Redemption of 28,762 shares 7% cumula
be
will
VERTIENTES-CAMAGUEY
Unsubscribed
Lumbcrmens
donation to Georgia Power & Light Co.
ATHEY TRUSS
Commission.
the
lateral) 5%
lative
tive
of
Details in "Chronicle."
31
company*,
investment.
Details in
1944.
record
rata basis at $8 per share
pro
a
of
due
r£al estate and the
one
three
of
preferred
to be offered for subscription tc
are
,1944.::
ELEVATOR
The
and
to members of the issuing
corporation and individual members of its
used
on
will
funds
subject to the competi¬
subordinated
maturing
duce
proceeds
29,
deter
OF
Balance
corporate
purposes.
' The
date of issue.
face
Pro¬
"Chronicle," Aug. 10, 1944.
filed
AMERICA
Casualty
us.
No underwriter named.
1944.
and
per
$3,-
at
applied
loan.
underwriters
the
pub¬
acquire property
rules;
.
the
$110
The cost of
bearing interest at rate of 4%
a
shares will be
filed
whose
CO.
to
sold
be
MIDLAND
has
be
bank
used
of
preferred and
to the
new,
to
plied by amendment.
registration statement for 43,shares
of
capital
stock
(par
$5)
filed
for
can¬
respectively.
the
are
the
and
and
capital
Issue*
were
but
been
TERMINAL
of the
a
to
of
Proceeds
EXCESS
and
placed
is
ina general
amendment.
additional trucks
Filed May 19, 1944. Details in "Chronicle,'
May 25.
1944,
CO. has filed a registration statement for
$250,000, 10-year 6#> subordinated sinking
fund
note.
Proceeds
will
be
used
for
construction of
of
and
bidding,
$250,000
FLORIDA
PUBLIC
is
Com¬
factory
35,473
Indiana
Co.
of
price
dividends.
of
sale
stocks
construction
non-cumulative series 2 preferred, par
$100.
Price to the public $100 per share.
.of
and
of
hands
and $4,287,360,
from
U-50,.
the
transactions
included
for
Co.
EQUIPMENT FINANCE CORP. filed a
registration statement for1 14,000 shares
acquisition
7%
&• Electric
redemption
-two
Indiana
\cif
for
YOrk
$7,880,000
redemption
in
now
these
be
offerer1
July 1, 1944,
July 6, 1944.
foV
plus accrued
the
Filed
old
preferred
Gas
and
the
payment
of the underwriters will be filed by
Names
tration
ALVA
at
rule
under
bidding
New
of
of
common
of
the
constituent
companies
it in exchange for an aggregate
shares of common stock, $10
by
350,000
of
6%
share
ceeds
owned
shares
old
Indiana
lic,
merger
County Utilities Corp.
In con¬
this merger Cities Service
Light Co. is surrendering all the
securities
six
amount
28,731 shares of old 7% pre¬
ferred and 245 shares of old 6% preferred
596,749
of
544
cellation
with
&
than
more
the
in
American
and Benton
Power
not
of
junction
Net
of
statements
more
of
CO.
proceeds for purchase for cancella¬
$3,596,749,
the
properties of Ozark Utilities Co., Lawrence
County Water, Light & Cold Storage Co.
proposes
tion
ELECTRIC
cumulative
preferred stock
Company proposes to make a
from
use
from
Empire District Electric Co. which is con¬
trolled by Cities Service Power
& Light
Co.
in
25.
Mav
of
banks
and
shares
first mortgage sinking fund 5% bonds
March 1,
1952, assumed by Empire.
due
amount
corporation
registration statement for 120,-
a
$100).
(par
loan
City
to
the
MICHIGAN
&
shares
the
are
moneys
estimated
the
reimburse
Filed
•
filed
000
the company expects
to sell con¬
temporaneously with the issue and sale of
bonds
in
will,
INDIANA
which
present
OF OFFERING
days
31.
The
the
corporate
/.UNDETERMINED
twenty
May
Inc.
by Porter Asso¬
account of the purchase of
sale
shares of 5 Q
stock,
par
$100,
preferred
shares
for
has
stock
corporation
$187,500.
part
CO.
common
$200,000 expended by it in
purchasing such shares.
Porter Associates,
Inc., underwriters.
Details in "Chronicle,"
re¬
the
net'
Associates,
the
to
said
01
the sale of 6^500
cumulative
Shares
whose registration
De¬
1944.
Net proceeds will be received
ciates, Inc., on
issued
are
Porter
paid
has
CO.
outstanding and are being offered fo:
the
Light
of
ELECTRIC
and 350.000 shares of common stock
$10).
(par
nas
(8-25-44).
;/v
reduction
1944.
20,
100,000 shares of
$2 par value.
investment.
Registration Statement No. 2-5461. Form
DATES
the
to
July
MANUFACTURING
registered
post
warehouse buildings and
,
Business—Investment
applied
Filed
"Chronicle," July 27,
Details in
FUND
CLARK
&
,
be
loans.
in
HAYES
underwriters
filed
registration statement for $10,600,first mortgage bonds, 3'/2 % series dup
1969,
in
permission
TUESDAY, SEPT. 12
tails
WEDNESDAY, SEPT. 13
SCUDDER,
will
bank
of
a
Both
.
Underwrting—Putnam
W. Scranton & Co. are named underwriters.
(
MONDAY, SEPT. 11
$250,000.
>
filed
will
treasury for redemption on Sept.
at 106 ol' $7,000,000 first and re¬
1944,
1941 ; filed
a
registration statement
for
exchange offer to be sold at competitive
bidding. ■/•
-'i $12,000,000 25-year sinking fund deben¬
Company planned
Registration Statement No. 2-5457. Form tures due Aug. 1, 1969.
to refinance its entire outstanding debt by
S-l. (8-22-44).
5
"
1 ^
' the -issuance and
sale to
the public of
tion statement for
]
Gas
corporate purposes.
Business—Flour
SATURDAY, SEPT. 2
THE
required
Minneapolis,
] "Chronicle,** Aug, 24,. 1944.
]
and
issues
company
amendment.
demption
registration statement for $10,-
a
imburse
first
SEPT. 10
SUNDAY,
registration
twenty
whose
grouped according to dates
registration statements will
ago,
which
on
,
,
ment,
terest
filed less than
were
the
to
1944.
NEW FILINGS
List
.
Mackubin, Legg & Co.,
Company, $200,000;
$100,000;
1944.
statements
also
Company.
Offering—Price to be supplied by amend¬
$200,000; Paine, Webber, Jackson & Curtis,
Co.
of Chicago, $75,000.
Common stock¬
holders of record Aug. 24 are offered right
Details'in ."Chronicle!,"' to subscribe' to/the debentures, in ratio of.
»/AUg. 10, 1944,
' one $100 debenture. for each 25 shares of
Bonds awarded Aug. 28 on bid of 103.52
stock at 103 plus interest from Sept. 15,
as. S Vss to White,
Weld & Co., Shields & 1944.
Unsubscribed
debentures
will
be
,
;
Business—Electric
bonds,
fund
-
'
will
Conn,
mortgage,
10*year, ;Al&%" convertible debentures
and 146,875 shares ($1 par) common stock
and associates.
proceeds
000.000, first and refunding mortgage* 3%
bonds series I, due 1974.
/Address—36
Pearl
Street, Hartford 1,
.
registration, statement for ,$12,000,mortgage, bonds series due 1974.
Net
proceeds from the sale of the bonds
and
$2,000,000 of promissory notes,
to¬
gether with such additional cash from
v
general funds as may be required, will be
i used to redeem at 102% the $15,000,000
/- first
mortgage gold bonds," 5% series due"
>1957. The bonds will be sold under the
/competitive bidding rule of the Securities
.and Exchange Commission-and names of
underwriters will be filed by amendment.
'Co.
exercised
18-24-44).
A-2.
000,
1, -1844.
of
other
event stock purchase
In
will-be
interest
981
first
"Filed Aug;
and
ARMOUR & CO. has filed a registration
has
& LIGHT CO.
expansion
business
>*.'.•
■;
Registration Statement No. 2-5459. Form
at. 105%. plus accrued interest.
Names of underwriters and. interest rate
to be supplied by amendments.
Filed Ang.
.18, 1944.
Details in "Chronicle," Aug. 24,.
statement
Co.
MISSISSIPPI POWER
.filed
r.000
for
funds
placed in company's general funds.
Underwriting—Blair
&
Co.,
Inc.
and
Maxwell, Marshall & Co. named under¬
'
,by Allen
general
be
bonds
5%-
1944.
t
CORP.
warrants
each
or
held
stock
to be
date
series E, due
Sept. 'IVs 1964; / Proceeds will- be used to¬
for an un¬ gether with $10,000,000 bank loans and
determined number of shares of common;
general funds of company to retire out¬
stock, (no pa*).
Proceeds are to be used standing $76,365,000 series B, series C and
'in connection with the acquisition of the
series D bonds at 105 .and interest.
Kuhn,
i securities of the Danbury & • Bethel Gas &
Loeb & Co. are named principal underwrit-:
/Electric
Light Co., from Cities Service ers. ■ Filed Aug.
18,
1944.
Details, in
"Ppwer & Light Co, -Filed July 24, 1944.
"Chronicle," Aug. 24, 1944,
XDetails iir VChronicle,'' Aug. 3, 1944.
-Attofcal of 54,054 shares of common stock
THE UTAH; RADIO PRODUCTS CO, has
S (no. paTT_offeted Aug. 20 at $20 per share
.filed • a - registration statement for $l,175r
DERBVGAS & , ELECTRIC
filed a registration statement
-
needs/
inde¬
an
of
available for conversion.
shares
record
Aug.
Filed
,
products
corporate
of company's class A and class B
entitling
them to purchase
$100
principal amount of the new debentures'
Weeks,
2,
Hornblower &
Co.,
Hutton
available
company
consumer
stock
Clark, Dodge & Co., East-
.
.
making
tax
holders
Sub¬
..
Bros.,
notes
Government
unspecified
scription warrants will be issued to present
rights
Beane,
debentures
number
stock to be
.shares at the same price during, the same
0f tlie ,70,000 shares offered 54,r.
196 shares were purchased by stockholders
and
2,937
by employees.
The balance
> (.12,867 shares) were publicly Offered Aug.
29 at $50 per share by Harriman Ripley &
Co., Inc.;; Hemphill, Noyes & Co., The First]
•Boston Corp., Kebbon, McCormick is Co.,
&
convertible
terminate
\period..
'Lehman
of
S.
U.
names
and
000
;
purchase
Both
the
by
by
due
registration statement for $24,603,-
a
0C0
to
,
'ner
to
Proceeds
25-year., sinking
1969,
sale
ding rule U-50 and
..
Proceeds—$1,500,000 of proceeds will be
1,
WESTERN UNION TELEGRAPH CO, has
record
held/;
17, 1944. Details in "Chronicle,"
1944.
24,
filed
expired Aug.. 25.
Employees were offered, not more than 10,000
scriptions
.
by amendment.
for
synthetic
of
funding
pro rata at the
preferred for each
of
of outstanding series
mortgage bonds, due 1966.
WEDNESDAY, SEPT. 6
subscription
shares
shares
100
offered
first
Filed Aug,
•
the,
CO.
redemption
to
3 Vs'/e
A,
registration
a
70,000 shares of cumulative
for
processing
due
offered
effective
v
,
ELECTRIC
registration statement ior $31,mortgage bonds,, series A,
'
CARRIER CORP. has filed
i
•
.'/■>;/' i1;-;
•') •<„" , :
Offering—Offering price will be supplied
3%, due 1974.
Bonds will be offered at
competitive bidding.
Proceeds will be ap¬
Inc. at $6 per share.
'statement
Business—The
Head ' Building,
<
Island.
be
pursuant to Commission's competitive bid¬
•
Turks
Rhode
yarns.
for working capital.
Proceeds
debenture.
$12,000,000
debentures
will
for
common
and
1969
fund
De¬
common
1944.
be
capital and for
Offered Aug.
purposes.
$1,000
1947.
into
CONNECTICUT LIGHT AND POWER CO.
plied
Aug.
outstanding 500,000
stock at par on basis of
1,
convertible
Address —-8-8
Providence .3,
has filed
Co.
&
(Fomeroy,
frate
to
by stockholders will be sold at pub<
Filed Aug.
by
Doolittle,
Noyes
offered
be
presently
capital
lie auction.
cf
$1).
Of the total
sold for account of the
Company's proceeds
corporate
1944
28,
;.
shares
will
and 62,220 for account of certain
company
other
141,054
taken
(par
to be
are
for
of
of
Stock
share for each five held. Any stock not
one
tration
for
stock.
shares
regis¬
a
filed a registration
100,000 shares
($10 par)
has
HAWAII,
capital
filed
each
due
1945, $15 to Oct.
Oct.
basis of 50 shares of
op
be
anticipation
THE MUTUAL TELEPHONE CO., HONO¬
LULU,
1,
to
stocjc
y
MONDAY, SEPT. 4
require-approx-
has
plant
Alstyne,
to Oct.
$17.50
and
will
used
to
CO.
Van
underwriters,
i/i>"/;'■/vii.;f /ii'' '■/.i"i
statement
BUFFALO BOLT
operations.
are
oper¬
at $12.50
1946
capital;
Filed Aug.
Details in "Chronicle," Aug. 24,
imately $470,233, any balance will be added
;
•:
Co.
&
1944.
working
for mechanization of factory
$80,000 for readaptation of
peacetime
Noel
subscribe to the new
common stock at $5 per share in the ratio
of one share for each
two shares then
held.
Rights will expire Sept. 11.
Almost
the
entire
net.
proceeds will be used to
retire
the
company's
preferred
stock
given
foradditional
used
ations;
of
1944, are
Of the proceeds $575 will
(par $5).
$100,000
shares
Holders
par).
<no
stock of record Aug. 28,
common
filed
has
ICO,000
for
1,
bentures
reserved for
$450,000
first
bonds.
Underwriter
Co., Inc., New York.
*
that
the
again become
creditor nation
it did after the
meant
United States would
international
an
after the
last
>
war
as
conflict.
Mr, Roosevelt
pend
on
'
said it would de¬
_
the status of the indi¬
For example, he
a country with a lot of
vidual country.
mentioned
money
which wapts to buy here
probably could get reasonable
rates from private capital.
But
another country that doesn't have
so
much will be a different case
and
and will have to be
handled dif¬
ferently.
The President said he
plans to extend
to Italy.
no
knew of
Lend-Lease aid
:
/
Thursday, August 31, 1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
9C4
Conv. Pfd.
Carrier Corp.
REMEMBER
Teletype—N. Y. 1-971
IIAnover 2-0050
New
...
but
i/J
issues
all
'
s
To Issue 15-Year Debs.
Convertible Debentures with
stock per $1,000 Deben¬
$12.50 per share until Oct.
1, 1945, and on an ascending scale
thereafter until 1947.
The Com¬
mon
stock is listed on the New
York Curb Exchange and
cur¬
rently is selling at 10
Proceeds of the issue will per¬
the
company
its
enlarge
to
capital position which,
effect to the financing,
would show according to balance
sheet of June 30, 1944, current
assets in excess of $7,200,000 and
current
liabilities of about $3,-
profit made.
Incorporated
TEXTRON
oper¬
integrated
unit, including the processing of
synthetic yarns, such as Nylon,
Viscose, Acetate and others, to the
is
almost a fully
now
and
manufacture
sale
tail trade of finished
to the re¬
textile con¬
goods made from synthetic
sumer
These include ladies' slips,
yarns.
men's pajamas,
shirts, shower cur¬
tains, draperies, piece goods and
lining material.
All of these are
sold under the nationally adver¬
tised trade name of "TEXTRON"
to
outlets
retail
whom
of
most
country,
the
throughout
the
are
"After
University
of
subject at Duke Uni¬
same
For five years he was
speech consultant of the North
Carolina Bankers Association and
of
two
years
Bankers
the
the
faculty
Carolina
of the North
Conference
past
the
at
State
University at Chapel Hill. He also
taught adult classes of the North
Carolina State Department of Ed¬
ucation and has been frequently
heard
ers'
the
on
of bank¬
southern
programs
in
meetings
the
states.
Mr. Lewis is
the
past president of
a
Southern
Teachers
gional
of
Speech and was re¬
of the National
Association of Teachers of Speech
1942.
with the main office in New York
and branch offices in key
During the war period the com¬
has been engaged in produc-i
pany
tion of
products such as para-j
chutes made from Nylon, jungle
hammocks, mountain tents, par-;
kas, ponchos,
and
other sewn
war
items.
The demand for such pro-;
ducts has been decreasing and the
general trend of operation in re¬
cent
has
months
owned, in which the company
does yarn throwing, weaving and
sewing.
are
sales
in
1943
approximately
which
taxes
the
the
profit
about
half
amounted to
a
$24,000,000
was
first
amounted
of
to
on
before income
$1,700,000.
In
1944
$16,000,000
profit of $1,136,000
sales
net
on
charges
on
SAN
to
Geissler
D.
shown.
interest
the funded debt were
Pressurelube, Inc.
Giant Port. Cement Arrears
CALIF.—
opened
has
He
member of the San Francisco
Stock
Exchange.
Geissler
ving
Lundborg
Witter
Formerly
&
Co.
Mr.
with
associated
was
and
Ir¬
Telephone
Bell
New York 5
COrtlandt 7-0744
Teletype NY
1-888
based
nations
the principle of
on
sovereign equality.
"2. A Council
composed
smaller
of
number
of
a
in
members
Effective
the
for
means
disputes,
including an international court
of justice for the adjudication of
justiciable
questions,
and
also
the
applications
of such
other
means
as
may
be necessary for
of
settlements
"Highlights of Wall
comprehensive • infor¬
of
mation
service
issued
by J. F.
Reilly & Co. for banks, brokers,
and retail distributors, may be had
from
the
firm
upon
request.
Write to J. F Reilly & Co., Ill
Broadway, New York City.
If
you
York
City, members of the New
York
Stock
analysis
from
may
be
Francis
had
du
& Co.
Cavanagh,
being
now
new
a
adver¬
C.
Goodall,
The
Mart,
general
of
manager
announced.
proposals
stem%from var¬
approaches to the common ob¬
jective. After our work has ad¬
vanced to a stage at which our
have
tions
sented,
ments
formulated
been
conclusions
our
recommenda¬
considered
fully
have
and
been
pre¬
respective govern¬
will decide the appropriate
our
moment for
publication."
women's apparel fields. The cam¬
paign traces the story of the city's
growth from; a frontier fort in
1812 to its position today as the
No.
2
city in the Western Hem¬
isphere with an industrial area
population of nearly five million
and
of
annual retail sales volume
an
than two billion dollars.
more
One
advertisement
that Chicago's
includes
out
points
natural marketing
45% of the U. S.
population, and 44.5% of the na¬
tion's retail stores accounting for
40.6 of the total retail sales vol¬
The city's strategic
ume.
location
companies distributing by
truck, train or plane
a service
"gives
(Special to The Financial Chronicle)
has
Jr.,
with
become
Josephthal
&
LOS ANGELES,
H.
asso¬
19
Co.,
Nissen is
mary
Eichler
Oglesby
R.
S.
has
in
E.
staff
of
the
&
(Special to The Financial
for
himself
in
Kinston, N. C.
OHIO—C.
Barnes
Walbridge has become
associated
TOLEDO,
with
1
(Special
to The Financial
Francis
Wall
I.
du
Pont
&
on
with
time,"
campaign
by John J. Finlay,
Vice-President, Aubrey, Moore 8c
Wallace, Inc.
'•
.
points
The
declares.
prepared
was
other
transfer, £-3%
one
another
Co., Russ
•
;
60,000
to
(Special to The Financial Chronicle)
In the past Mr. Oglesby
business
Chronicle)
FRANCISCO,
CALIF.—
Meyerson has been added
Building.
Wilder
Co.,
service delivers to 800 cities direct
and
to the staff of Kaiser &
C.—David
joined
Dickson
Building.
was
N.
Spring
over
only
Ilarry
to The Financial Chronicle)
with Bateman,
now
Co., 453 South
&
their
rim
shipping
competitors. In normal times, the
city's famous overnight package
edge
CALIF.—Rose¬
Street.
SAN
Co.,
INDEX
-y'%Bank
Street, New York City.
Insurance
and
Broker-Dealer
of
Calendar
Stocks....
Personnel
New
<>...
892
Items.....
904
Security Flotations 903
Securities
Canadian
Chronicle)
893
Municipal News and Notes....,,;.. 896
CHICAGO,
Phillips
ILL.
has
—
become
H. Davis
He
Irving
B.
connected
&
was
formerly
with Blyth & Co., Inc.
(Special
Horton
No.
and
MICH.—Forrest
Guy
E.
Nemire
with Slay ton & Co.; Inc.,
now
Fourth Street, St.
(Special
H.
Island
Louis,
is
WIS.—Lyman
Co.
Transport
accord¬
now
Davis
&
associated
Co.,
10
with
So.
P. R. Mallory
La
(Special to The Financial Chronicle)
Mutual Funds
Our
Our
an
........
886
.....
Reported on Governments
Reporter's Report.
Public
Utility
Railroad
889
Securities.,..:.......
Securities
Securities
Salesman's
Tomorrow's
.
Corner (The).
Markets—Walter
Says
901
8.90
887
Real Estate Securities.
888
397
Whyte
886
.*
Liberty Baking
Mallory Interesting
W.
to
son.
and
ing to detailed memoranda issued
by Wm. J. Mericka & Co., Inc.,
Union Commerce Building, Cleve¬
B.
are land, and 29 Broadway, New York
114 City. Copies of these interesting
studies may be had from the firm
Mo.
upon request.
Salle Street, Chicago, 111.
LOS
Lime
to The Financial Chronicle)
KENOSHA,
Williams
Diamond Alkali Co. and Kelley
offer attractive situations,
to The Financial Chronicle)
DETROIT,
Lime and Alkali Look Good
Co., 10 So.
ANGELES, CALIF.—S. S.
uation in the various Coca-Cola Woodbury has rejoined the staff
Bottling Companies, and Red Rock of H. R. Baker & Co., BankamerBottlers, Inc. Copies of these in¬ ica Building. Mr. Woodbury was
teresting circulars may be had recently with Russell M. Ander¬
from the firm upon request.
in
campaign being sponsored
by The Merchandise Mart, John'
Mr. Goodall explained that the
Differ¬
of the different advertisements would run in lead¬
countries do not necessarily indi¬ ing horizontal trade publications
in
the
home
furnishings
and
cate
disagreement of conflicting
Tifft Brothers.
Paul
pared circulars discussing the sit¬
midwest business
a
...
upon
Pont
or
submitted to examination.
Chronicle)
MASS.—George
Copies of
I.
are
contemplate making additions to your personnel
to The Financial
BOSTON,
preferred offer attractive
possibilities according to a detail¬
ed analysis prepared by Francis I.
du Pont & Co., 1 Wall Street, New
this
proposals
please send in particulars to the Editor of The Financial
Chronicle for publication in this column.
Company
Excharye.
topics require a great
consideration, and a num¬
ber
of
national
a
is being stressed
tising
Broker-Dealer Personnel Items
with Paul
Christiana Attractive
common
jur¬
organs
area
La Salle Street.
Securities
and
procedure.
ied
"3.
The importance of Chicago as a
marketing center for firms doing
various
points of view but
principal states will be
a
number of other
be elected periodically.
peaceful
continuing
structure
the
of
are
deal of
ent
by
(Special
"Highlights Of Wall St."
Christiana
the
discuss
to
which the
CHARLOTTE,
a
delegations
joined
states to
secur¬
and
"These
of
composed
Dean
Bottling Cos. Attractive
Broadway
Assembly
representatives of all peace-loving
& Co.
Copies
Street,"
"The
'*
■
An
Congress Street.
Mr. Cavanagh
was previously with Williams and
Southgate and in the past with
a
of peace
maintenance
and methods of
for:
'
Teletype BS 69
Importance Of Chicago
Marketing Center
ity.
peace
Hoit, Rose & Troster, 74 Trinity
Place, New York City, have pre¬
120
proposed
the
organization
for
and security should provide
(Special
Amer. Gas & Power Warrants
W. T. BONN & CO.
that there is
among them
gage in the securities business.
reauest
Illinois Power Arrears
that
SQUARE
MASS.
9,
1990
As
discussions,^
isdiction
"1.
plus
powers
statement which was given in Associated
Washington on the same day as follows:
of
BOSTON
Tel. HUB
& CO.
OFFICE
POST
10
requestv-;:-,
announced on Aug. 29 by the
declined to amplify the announce¬
ciated
was
Eastern States Pfd.
week
a
ILERNER
Security Organization
of big
13
-
Circular sent upon
was
offices in the Kohl Building to en¬
is
Stock
the joint
in
recommend
Chronicle)
FRANCISCO,
Kenneth
'
On
international
Opens In San Fran.
to The Financial
which
Based upon these figures,
smaller nations,
happy to announce
general agreement
towards
been
civilian goods. The company oper¬
ates five plants, three of which
Net
(Special
cities.
Class A
$1.25 Cumulative Participating
1-570
of
Association
president
Geissler
Riverside Cement
york
new
composed
council
a
the three heads of delegations are
1943 instructor
1935 to
from
page)
speech at the
Wichita, Kansas,
of
Dividend Arrearage
a
5
the form of an international security
on
Oaks conferees who
made
ment
The company
maintains its own
country-wide selling organization
including
of
number
in
better known department stores.
agreement"
"General
Press accounts from
instructor
With
Bell Teletype
telephone
Form Of International
Educational Post
fContinued from first
Art Outstanding .Cement Stock V
,
YORK
NEW
Dumbarton Oaks Conferees Agree
Dumbarton
member
1-1397 '
Y.
N.
Market 12
organization,
primarily in the synthetic
products field.
Established since taught public speaking at chap¬
ters di the American Institute of
1928 in the synthetic yarn busi¬
Banking at Durham, Raleigh, and
ness,
it recently expanded its
Mount. He has been a
activities
so
that the company Rocky
ates
25 Broad St., N.Y. HAnover 2-8780
Teletype
Dealers Association
Security
Enterprise 6015
2-3000
REctob
a
in the
j:
Company
STREET,
philadelphia
Leroy Lewis In AIB
was
York
New
NASSAU
TELEPHONE
negotiation of 1943 contracts be¬
of the modest percentage of
versity.
500,000.
Members
45
cause
giving
I Members N. Y. Security Dealers Ass'n
INCORPORATED
does not expect any re¬
company
and
COUNTER SECURITIES
issue $2,000,000 Fifteen-Year
Detachable Stock Purchase War¬
working
•
Kobbe, Gcarhart
underwritten by a banking group headed by Blair & Co.,
Inc., New York City, and Maxwell, Marshall & Co, Los Angeles, Cal.
A fixed sinking fund of approximately $103,000 each year will retire
at least 75% of the Debentures before maturity.
Conversion may
be made into fifty shares of Com-<e>
;
in
lyiis
over
mon stock for each $1,000 Debenearned in 1943 over 15xk times:
and
for
the
six
months
ended
ture.
Stock warrants permit the
June 1944, almost 21 times.
The
purchase of twenty shares of
mit
I
(Actual Trading Markets, Always)
rants, to be
ture at
i*
v
CHICAGO ===========
'
Common
\
-v.*
but collaborators
of,
competitors
not
THE
-
New York 4, N. Y.
TEXTRON Incorporated expects to
5%
l,M
v
M. S. WlEN & Co.
OVElt
AFFILIATE: CARL MARKS & CO. Inc.
Texiroit Incorporated
App. n
Electro!, Inc.
SECURITIES;
50 Broad Street
<
Bendix Home
to
markets.
with, all retail distributing dealers, iji
SPECIALISTS
==========
'
\
are
(-.AM. MARKS & (-A INC.
FOREIGN
*
entirely
business
our
trading
Brill "A" "B" & warrants
WE
,
confining
actual
..
Majestic Radio & Tel.
with no retail sales department of our own,
FOREIGN SECURITIES
Pfd. Plain
;
;;
,
Trading Markets
Firm
England Pub. Serv.
Preferred
& Co., Inc., offers
interesting situation, according
analysis prepared by Steiner,
an
Rouse
York
&
Co., 25 Broad St., New
City, members of the New
York Stock Exchange.
this
analysis
Steiner,
quest.
may
Rouse
&
be
Co.
Copies of
had
from
upon
re¬
Kill, Thompson & Co., Inc.
Markets
120
and
Situations
for
Dealers
Broadway, New York 5
Tel. REctor 2-2020
Tele. NY 1-2660
@FedFRASER