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VOL. 131.
SATURDAY,DECEMBER 20 1930.
financial Cl/Ironiclc
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The Financial Situation.
The developments of the week have not been such
as to work any material change in the outlook for
the immediate future, which remains far from being
highly reassuring. Some comfort, even if very little,
is to be derived from the fact that the stock market,
after a further plunge downward in the early part
of the week in continuation of the long and furious
antecedent decline, extending over many months, has
experienced a sharp upward rebound, and that this
has brought recovery also in the bond market, which
recently has been suffering depreciation quite as
serious as that which has marked the course of the
stock market. On the other hand,the price of copper
in the absence of sufficient demand to enable the
quotation of 12c. a pound, agreed upon last month
among the leading producing interests as a fair and
proper price, has reverted back to 10c. a pound, the
price having moved steadily lower during the last
three weeks, at first at the instance of the custom
smelters, but recently also having been followed by
the large producers; the export price has fallen from
12.30c. to 10.30c.
NO. 3417.
At the same time, steel ingot production continues
at only 38% of capacity, and next week, with the
Christmas holiday intervening, will probably drop
still lower. However, all this is in line with recent
expectations; at least, we are approaching the end
of the year, when it is customary to slow down anyway, in most lines of trade, for the purpose of inventory taking, and in the circumstances undue stress
should perhaps not be laid upon these renewed evidences of slackening in business.
What does furnish occasion for deep and unabating concern is the farm situation, particularly the
market fluctuations in wheat and cotton under the
influence of the operations of the Federal Farm
Board, functioning through its subsidiary corporations. The Board has been directing its energies
mainly to the maintenance and stabilization of market prices of wheat and cotton, and how futile these
efforts have been appears from the circumstance
that the price of spot cotton in New York has now
dropped below 10c. a pound, which is lower than at
any time since 1914, when a huge break was precipitated by the outbreak of the European war. The
futility of the Board's efforts is also evident from
the further fact that the July option for wheat at
Chicago on Wednesday of this week dropped to
671/
4c. per bushel, and again yesterday sold down to
6T1/
8c., the lowest figure touched since 1901. The
Farm Board has been carrying on now for a period
of about 17 months, and how utterly unavailing have
been its endeavors is perhaps most strikingly re8c. comparison is
vealed when we note that at 671/
with $1.30 a year ago. That is, the price has been
cut almost in two during the 12 months in spite of,
or perhaps as the direct result of, the well-meant
but ill-advised operations of the Farm Board.
While wheat for July delivery has thus been going
all to pieces, the Board has through persistent buying had a measure of success in maintaining the
price of wheat for December delivery. During the
whole month of December thus far the fluctuations
in December wheat at Chicago have been confined
within the range of 74@78%c., and fluctuations in
the March option have been confined within a like
comparatively narrow range, at a level of about 2c.
a bushel higher, and in the May option have held
within the same narrow limits at a level about 4c. a
bushel higher. The Board engages in dealings in
future options, as well as in cash wheat, and evidently its operations have not yet extended to the
July option, which explains why that option sells so
much lower than do the current or near-by options,
but also shows the artificial character of the prices
which the Farm Board is maintaining. It also
deserves to be pointed out that the difference between the American price, as fixed by the Farm
3916
FINANCIAL CHRONICLE
Board, and the market price uncontrolled by artificial devices (as in the case of quotations at Winnipeg) is steadily widening. When the Farm Board
resumed the purchase of wheat during November
the first effect was to cause a difference in price in
favor of American wheat and against Canadian
wheat of only a few cents a bushel. Yesterday the
difference was over 23c. a bushel, December wheat
at Chicago having closed at 767/8c., while the close
for December wheat at Winnipeg yesterday was
8 the Winni/
only 5334c., which compares with $1.293
peg price at the same date a year ago.
To the ordinary mind-this overvaluing of price, at
the instance of the Farm Board in this country,
furnishes occasion for great anxiety as to what the
ultimate effect is likely to be of the vast accumulations of unsold wheat in the hands of the Farm
Board. By the authorities at Washingon, however,
the higher artificial level is referred to as indicative
of the benefits which the Farm Board is conferring
upon the wheat raisers of the country. Thus we find
President Hoover, in his annual message to Congress, saying with evident pride:
"The price levels of our major agricultural commodities are,in fact, higher than those in other principal producing countries, due to the combined results of the tariff and the operations of the Farm
Board. For instance, wheat prices at Minneapolis
are about 30% higher than at Winnipeg, and at
Chicago they are about 20% higher than at Buenos
Aires. Corn prices at Chicago are over twice as
high as at Buenos Aires."
The whole matter is given renewed prominence by
the news which came from Washington on Thursday
saying that "strict Government regulation of all
exchanges dealing in agricultural commodities, with
control centralized in a single Government official
or bureau, to curb speculative manipulation of food
prices, is recommended to Congress by Alexander
Legge, Chairman of the Federal Farm Board." We
are told in these news dispatches that "although
there are three laws on the statute books designed
to prevent speculative gambling, at the expense of
the agricultural markets, Mr. Legge did not hesitate
to tell the committee (of the House of Representatives to whom he made his statement) that they
either had 'no teeth' or were made impotent because
authority to enforce them was scattered through several Government bureaus instead of being centralized in one."
In this appeal to Congress for further legislation
we have a new illustration going to show how invariably and how irresistibly one false step leads to
another. And yet it is a little curious to find Mr.
Legge thus appealing to Congress when in his annual
report to Congress, just submitted, he furnishes the
strongest of testimony to show that nothing effective
can be accomplished through legislative means or by
other measures of the same kind. This report, by the
way—the first rendered by the Farm Board—is to be
commended for the broad-minded way in which Mr.
Legge presents all the elements relating to the
problem. The frank and open manner in which he
marshals all the facts relating to the case, and the
keen analysis to which he subjects the experience
and action of the Board, are deserving of the highest
praise. There is no concealment, no evasion of pertinent facts and circumstances. The whole argument is summed up in clear and convincing fashion.
rirou 131.
And the conclusions summarized, based on the
Board's experience, carry additional weight because
in part at least they appear to have been come to
very reluctantly. It is this that makes one wonder
why he should have recourse to Congress for a legislative panacea which his own experience so clearly
demonstrates must prove wholly abortive. In the
first of his conclusions we find him saying:
"In a major stabilization operation with a commodity such as wheat, it is inevitable that a large
quantity of the commodity must be taken in order
to exert any material effect on the market. Furthermore, the accumulation of a substantial volume,
the most of which necessarily must be in the visible
supply, has a somewhat depressing effect upon
prices. Announcement that such accumulations will
not be sold is not sufficient to reassure buyers unless
the quantity thus held renders difficult the purchase
of supplies adequate to the demand. Even then the
demand is curtailed or limited to immediate requirements, and forward buying in anticipation of future
needs is lessened."
Expressed in a little different language, this bears
out the contention upon which we have always insisted, namely that piling up accumulated stocks
of unsold supplies, in sight of the whole world,
must always have a crushing effect on price and
therefore must defeat its own purpose. Not less convincing is his second major conclusion, namely, that
"purchases in the cash market alone are inadequate
to sustain prices and do great injury to legitimate
operations in the option market by throwing cash
prices out of line with the future. This being true,
a stabilization activity must be conducted along the
entire line with the inevitable result that large purchases for future delivery must be made." In other
words, having embarked upon the course of stabilization, there is no retracing one's steps.
From this the third major conclusion necessarily
follows. This is, that "transactions in the futures
market, having been entered upon, there is no good
place to stop, even within the limits of a single crop
marketing." This shows that in the course of time
the Farm Board will have no alternative but to
enter into dealings in July futures, which the present week, in the absence of sustaining orders from
the Farm Board, have dropped so badly. To clinch
its argument on this point the Farm Board adds the
following: "Option prices are published covering a
period of from six to nine months in advance, and as
soon as any future option is abandoned or militated
against, that option gets out of line with the cash
market and other options—thereby imposing considerable hardship upon processors whose customary
practice of hedging or insuring their purchases is
conducted through the futures market." A beckoning hand is already being extended to the Farm
Board for action on July option in last night's advices from Chicago saying that pressure of Canadian
offerings abroad were largely responsible for yesterday's break in the July option.
It is not necessary to go into the other conclusions
which the Board draws as a result of its experience.
They all constitute a recital of the difficulties that
increase the deeper the Board gets into its operations and which must be dealt with and overcome.
But there being no stopping place, now that the
Board has entered upon its plans, what is to be
the ultimate outcome and where is the thing to end,
if it ever does end? In the meantime, what is to be
DEC. 20 1930.]
FINANCIAL' CHRONICLE
the effect upon Government finances of this neverending drain upon the Treasury in supplying funds
for the Farm Board,and what is to be the effect upon
the market price of wheat of the Board's steadily
rising accumulations of unsold wheat?
Mr. Legge in his report has only a single remedy,
and everything else is made to lead up to that. The
remedy is stated very tersely as follows: "The
obvious and economic remedy for the overproduction
of wheat, to which our own wheat growers are contributing,is a curtailment of production, with a view
to reducing and, if possible, eventually eliminating
our export surplus so that the tariff might become
effective on American prices." How barren of result
all this is, and yet how full of menace! How little
comfort it offers the hard-driven farmer! He finds
his wheat down to 77c. a bushel as against $1.37 not
so long ago. That is, he has lost 60c. a bushel. And
yet, to make the plan effective, he is now told he
must eliminate exports altogether and reduce his
production in the neighborhood of 150,000,000 to
200,000,000 bushels a year, limiting his output entirely to the demands of the domestic market.
He must accept a loss of 60c. or more a bushel
upon what he is able to market at home and forego
a possible profit upon 150,000,000 bushels, more or
less, which he has been able in the past to market
abroad. Would he not be better off if the whole
Farm Board scheme were abandoned? Could he
possibly be any worse off? And would not the
whole country be a thousand times better off, and
would it not remove a menace which now stands in
the way of a revival of business activity? Nay, more
than that, will we ever have a real revival of business so long as the menace involved in the Farm
Loan experiment is allowed to overhang the business
world?
It is welcome news that comes from Washington
to the effect that Carter Glass and his subcommittee
of the Senate Committee on Banking have engaged
the services of H.Parker Willis, who so ably assisted
Mr. Glass in drafting the Federal Reserve Act, and
who was the first Secretary of the Federal Reserve
Board. We are told in news advices from Washington that Mr. Willis is to be technical adviser to the
committee, and that associated with him will be
B. H. Beckart, Assistant Professor of Banking of
Columbia University, and Jules I. Bogen, Associate
Professor of Finance in New York University. It
is the purpose of the Committee to conduct an investigation into the operations and administration of
the Federal Reserve and National Bank Acts. Mr.
Willis and his associates are well qualified to act
as advisers to Mr. Glass and his committee, and we
may be sure that they will give disinterested advice.
The Banking and Currency Committee of the House
of Representatives, as is known, under the Chairmanship of Louis T. McFadden, has been engaged
in a similar undertaking for some time, but one
never knows where Mr. McFadden stands. He blows
hot one day and cold the next day, and is too prone
to indulge in sensational utterances. The Federal
Reserve authorities, it is understood, are likewise
engaged in some examinations and investigations of
their own, which in due time will no doubt be presented as conclusive of every point at issue, but there
is something farcical about the Reserve authorities
passing judgment upon their own acts and policies.
Much good is likely to result from the work of Carter
3917
Glass and his committee, reinforced by competent
disinterested advisers.
Federal Reserve credit galore is now being dispensed in pursuit of the Reserve's new easy money
policy, the object of which, of course, is to bring
about a revival of trade and business. But the revival fails to come at the bidding of these zealous
credit dispensers. If ever there was convincing
testimony and experience going to show that continuous inflation either of money or of credit can
never serve as a genuine agency for stimulating trade
and business, especially in bad times, we have it in
the events of the last 12 months. The present
week the bill and security holdings of the 12 Federal
Reserve institutions increased in amount of no less
than $164,892,000. To the extent of $109,000,000,
this was due to temporary borrowings by the United
States Treasury at the Federal Reserve institutions
pending the collection of the quarterly installment
of the Federal Income Taxes which fell due on Monday. But this still leaves $55,000,000 increase independent of that due to Treasury operations.
And this increase follows successive increases in
the preceding weeks back to Nov. 19. Since that
date the total of the bill and security holdings,
which constitute a measure of the volume of Reserve credit outstanding, has increased almost $300,000,000, having risen from $985,380,000 Nov. 19 to
$1,282,797,000 Dec. 17. In this interval of four
weeks the direct borrowing at the Reserve Banks has
increased from $205,037,000 to $331,321,000. No
doubt this borrowing, as represented by the discount
holdings of the Reserve Banks, reflects a desire on
the part of the member banks in this city to
strengthen their position in view of the closing of
the Bank of United States and a desire on the part
of banks elsewhere to put themselves in liquid condition in view of the numerous failures in those parts.
But as usually happens on such occasions, the Reserve Banks voluntarily added to the amount of Reserve credit afloat through their open market operations by purchasing additional amounts of Government securities and also by enlarging their holdings
of bank acceptances purchased in the open market.
Since Nov. 19 the acceptance holdings of the 12 Reserve institutions have increased from $178,273,000
to $251,591,000 and the holdings of United States
Government securities from $595,773,000 to $692,434,000. The latter total,it will be seen, is now close
to $700,000,000, this including the $109,000,000 of
temporary certificates purchased from the United
States Treasury.
All of which indicates how liberal the Reserve
Banks have been in adding to the volume of Reserve
credit afloat, without in the slightest measure stimulating trade; in fact, trade requirements for bank
credit have been exceedingly slim. This has occurred, too, while tremendous further liquidation
has been taking place on the Stock Exchange, diminishing the requirements on that account. In this
week's changes the discount holdings of the 12 Reserve Banks, representing member bank borrowing,
have risen from $257,097,000 to $331,321,000; the
holdings of acceptances have increased from $243,697,000 to $251,591,000, and the holdings of United
States Government securities (including the temporary certificates of indebtedness purchased from the
United States Government) from $617,703,000 to
$692,434,000.
3918
FINANCIAL CHRONICLE
There has been concurrently a large expansion in
the amount of Federal Reserve notes outstanding,
the total the past week having risen from $1,475,745,000 to $1,596,168,000. At this latter figure comparison is with only $1,383,604,000 on Nov. 19, showing an increase in the four weeks of $212,564,000.
Gold reserves have diminished coincidently, the
amount this week being $2,958,850,000 against
43,005,020,000 last week and $3,040,982,000 on
Nov. 19.
Brokers' loans have been reduced in the further
amount of $91,000,000 the past week, making the
twelfth successive week in which contraction has
occurred and bringing the aggregate of such contraction for the 12 weeks up to no less than $1,214,000,000, the amount of the loans on securities to
brokers and dealers the present week being down to
$2,008,000,000, as against $3,222,000,000 on Sept. 24.
During all this time there has been, as is known,
tremendous liquidation with enormous declines in
prices on the Stock Exchange. Nevertheless, it is
open to question whether this week's further decrease in brokers' loans represents real reduction in
Stock Exchange borrowing. In part, at least, and
perhaps in more than the full amount, it is due to
the omission of the Bank of United States, which
closed its doors on Dec. 11, from the totals. Just
how much of brokers' loans this closed institution
had outstanding at the time of the previous week's
statement, is not known, but the Federal Reserve
statement tells us that the bank in its last returns
showed loans and investments of about $190,000,000
—obviously a large amount. The further decrease of
$91,000,000 in these brokers' loans for the past week
was made up of $85,000,000 decrease in loans by the
reporting member banks in this city for their own
account and $5,000,000 in loans made for account of
out-of-town banks. Loans for account of others were
not changed during the week, at least where the figures are confined to the even millions.
A further marked decline occurred in the foreign
trade of the United States during November. Merchandise exports have not been so low in value as
for November in any month since February 1922,
excepting only the month of July last and that same
month in 1924, while merchandise imports for the
month just closed were below the value of any preceding month back to October 1921. Exports last
month amounted to $289,000,000 as against $327,169,000 for October and $442,254,000 for November
1929. The decline from a year ago is $453,254,000,
or 34.7%. Imports last month were valued at $204,700,000; this compares with $247,324,000 for the preceding month and with $338,472,000 for November
of last year, the loss this year being $133,772,000,
or 39.5%.
For the 11 months of 1930, exports have been
$3,568,473,000 against $4,814,444,000 for the same
period of 1929, the decline being $1,245,971,000, or
26.0%, while imports have been $2,853,336,000 compared with $4,089,552,000 a year ago, the reduction
being $1,236,216,000, or 30.2%. Relatively the loss
shown for November (as it was for October) was
considerably greater than for the earlier months of
the year. With the exception of 1922, merchandise
exports have not been at as low a figure for any
corresponding 11 months since the early years of
the war, while in the case of the imports, it is necessary to go back to 1922 to find a lower total.
[VoL. 131.
Exports in November this year are in excess of
the value of imports by $84,300,000;*a year ago the
excess of exports was $103,732,000. For the 11
months of 1930 exports have exceeded imports by
$715,137,000; last year exports for the same period
of time were $724,892,000 in excess of imports.
The decline in merchandise exports in November
was undoubtedly in practically the same divisions of
trade as in the earlier months of 1930. Detailed
reports for the 10 months ending with October show
that the shrinkage extended to many lines of trade
and ran as high in many instances as 30 or 40%.
On account of the much lower range of commodity
prices this year, the loss in values has been even
greater. In some sections of the petroleum division,
the decline is not so heavy and a slight increase appears for the 10 months as to quantity. Metals and
machinery lines show a reduction, and for automobiles the value of exports for the 10 months is nearly
down to one-half of the amount reported for that
period in 1929.
Cotton exports, which had improved somewhat in
October as to quantity, were off again in November,
export shipments in the latter month of 920,253
bales showing a decline of 142,500 bales, or 13.4%.
The loss in value was much heavier, November cotton
exports this year representing $59,307,500, the reduction from a year ago being $47,570,100, equivalent to a decline of 44.5%. For the 11 months of
this year, cotton exports were 5,811,650 bales, and
show a decline from a year ago of 847,350 bales,
or 12.7%. The value of cotton exports for the 11.
months of this year was $449,578,000, the reduction
from the same period of 1929 being no less than $230,692,000, or 33.9%.
As in exports, practically every item of merchandise imports for 1930 shows heavy losses. The four
commodities that lead in imports are sugar, coffee,
rubber, and silk. For all of these the value is
considerably lower this year, although for rubber
the decline in value is not nearly so great as the
loss in quantity, and for coffee, there is an increase
in quantity for the 10 months, although the value
this year is very much lower than it was a year ago.
The precious metals do not show for November
any material change from the preceding month in
exports and imports. Exports of gold were $5,008,000, there having been a steady decrease each
month from the $41,529,000 exported in July; for
November CL929 gold exports were $30,289,000. Imports of gold, on the other hand, of $40,159,000, were
slightly higher than in October, and were in excess
of any month back to April; in November of last
year gold imports had dropped (from the preceding'
heavy movement covering a full year) to $7,123,000.
For the eleven months of 1930, gold exports have
been $115,931,000 and imports $363,275,000, the excess of imports being $247,344,000. In the corresponding period of 1929, gold exports were $44,036,000 and imports $283,528,000, the latter exceeding exports by $239,492,000. Silver exports last
month were $4,102,000 and imports $2,643,000, the
latter the smallest amount in any month for a
number of years past.
Fall sowing of winter wheat for next year's harvest shows a slight reduction in area, but so slight
that it is altogether probable the President's Farm
Boa rd will be greatly disappointed. It will not be
the first time, however, since the creation of that
Mx. 20 1930.]
FINANCIAL CHRONICLE
very important body last year that it has found reason to show its displeasure. Winter wheat area for
the crop of 1931 is placed by the Department of
Agriculture at Washington at 42,042,000 acres. This
compares with 42,513,000 acres, sown to winter
wheat in the fall of 1929,for this year's harvest. The
decrease in this year's sowing is only 471,000 acres,
or 1.1%. The fall sowing of last year was in excess
of that of the previous year by 870,000 acres. This
year's harvest of winter wheat was 604,337,000
bushels, the largest of any year since 1926, and only
exceeded in that one year since 1921.
The condition of the winter wheat crop planted
during the past fall was slightly better on Dec. 1
than that for a year ago, being 86.3% of normal,
against 86% on Dec. 1 1929 for the crop harvested
this year. For the winter wheat crop harvested in
1929 the Dec. 1 1928 condition was 84.4% of normal.
The abandonment of area for the winter wheat crop
harvested this year, due to winter killing during last
winter, was 9.2%, a very substantial area. For the
preceding year, the area abandoned due to winter
killing was 6.2%, while the 10-year average was
11.7%. A most disastrous year was that in the case
of the crop planted in the fall of 1927, when the area
abandoned due to winter killing was 23.5%. The
area planted in that fall was very large, and the
harvest was 578,964,000 bushels.
The condition of rye planted during the past fall
was, on Dec. 1, 82.6% of normal against 87.2% a
year ago, and the fall sowing this year 4,158,000
acres, as compared with 3,996,000 acres planted in
the fall of 1929 for the crop harvested this year.
The harvest of rye this year was 50,234,040 bushels,
considerably above that of any year excepting only
1927 back to 1922.
3919
a few illustrations, Atchison, which in the early
morning break touched 168, rose to 1781/
2 in the
afternoon; New York Central, which dropped to
105%, sold in the afternoon at 111%; U. S. Steel,
which had sold in the morning at 134%, advanced
to 140 in the afternoon, and American Can, after
dropping to 1051/s in the morning, advanced to 1117
/
8
in the afternoon. Liquidation in the morning was
very heavy, but buying in the afternoon was still
more striking, and the day's sales aggregated over
five million shares.
The upward movement was continued on Thursday, with further extensive short covering and a
gratifying feature was a sharp rally also in the
bond market, which on the previous day had shown
weakness only second to that experienced by the
stock market. Towards the close of the day, however, the rise was interrupted by heavy selling
and rapidly declining prices for the copper stocks.
These latter dropped to new low levels for the year
owing to the inability of producers to maintain market prices for the metal, either on domestic account or
on foreign account, the domestic price falling to 10c.
a pound and the export price to 10.30c., against 12@
12.30c., respectively, when the agreement was
reached the previous month among the world copper
producers to move prices up to higher levels.
On Friday the course of prices was somewhat
irregular, the copper shares being again weak, and
there being much selling to realize profits. Only 42
stocks made new low records for the year on Thursday and 28 stocks on Friday. For the week as a
whole, no less than 704 stocks declined to the lowest
figures of the year. The local traction stocks were
an exception to the course of the general market,
even before the recovery the latter half of the week.
This was on rumors that an agreement had been
The stock market, after a sharp further collapse
reached
with the city authorities for partial or genduring the first half of the week, in which numeramalgamation. Later it was rumored that the
eral
ous new low records for the year were established
interborough would be left out of the fold because
day after day, suddenly and sharply reversed its
of alleged extravagant expectations. Brooklyn-Mancourse at about noon on Wednesday and staged a
hattan Transit stock sold up to 617
/
8 on Monday of
very sensational recovery during which the greater
this week, but fell back on Thursday to 26%. There
part or the whole of the early losses were recovered.
week, and closed yesterday at 597
/8, while InterThere appeared to be no special reason for this
borough Rapid Transit, from 26% the close on Frisharp reversal of the market's course downward,
day of last week, advanced to 277
/
8 on Monday of
which had been uninterruptedly in progress for
this week, but fell back on Thursday to 261/
8. There
many days, except that the short interest had
were no transactions in the stock yesterday. Call
reached enormous proportions, and in the endeavor
money ruled at 21/
2% on the Stock Exchange early in
of the shorts to cover their outstanding contracts
the week, but dropped to 2% on Wednesday, and rethey literally tumbled over one another to secure
mained at that figure the rest of the week. Outside
the stock they had previously sold. On Saturday
of the Stock Exchange, loans were obtainable the
last the market was weak, in continuation of the
latter part of the week at 11/
2%.
downward movement which had been in progress
Trading on the Stock Exchange kept growing in
for so long. In the half-day session on that day
volume until Wednesday, after which, the bear con
208 stocks made new low records for the year. On
tingent having been routed, it suffered some reduc
Monday the weakness was further accentuated and
tion. At the half-day session on Saturday the sales
304 stocks dropped to new low figures for the year.
were 1,962,480 shares; on Monday they were
On Tuesday the downward movement continued un3,440,170 shares; on Tuesday, 4,156,110 shares; on
abated with 365 stocks dropping to new low figures,
Wednesday,5,005,885 shares; on Thursday,3,290,370
including, of course, some stocks which had distinshares, and on Friday,2,270,350 shares. On the New
guished themselves in that way on previous days.
York Curb Exchange the sales last Saturday were
On Wednesday the market fell during the morn425,100 shares; on Monday,770,200 shares; on Tuesing into a state of almost utter collapse, and 370
day, 1,030,500 shares; on Wednesday, 1,341,900
stocks established new low records for the year. But
shares; on Thursday, 763,300 shares, and on Friday,
at the very time when the market was weakest, the
520,100 shares.
turn came and prices shot up with great rapidity.
As compared with Friday of last week, prices are
The fluctuations were violent in the extreme, and
irregularly changed, the losses earlier in the
week
in the upward surge most of the stocks recovered the
having as a rule been wiped out by the
whole of the early losses, and a great deal more.
upward
As splurge later in the week, leaving the
net change
3920
FINANCIAL CHRONICLE
generally quite moderate. General Electric closed
4 on Friday of last
4 against 451/
/
yesterday at 443
week; Warner Bros. Pictures at 14% against 14½;
14 against 38/
2; United
1
Elec. Power & Light at 39/
8; Brooklyn Union Gas at
Corp. at 16y8 against 161/
4 against 103; American Water Works at 54
/
1041
2 against 64%;
1
against 52; North American at 63/
4; Standard
Pacific Gas & Elec. at 45 against 451/
ed Gas
Consolidat
59
;
2
1
/
2 against
1
Gas & Elec. at 58/
8 against 8234;Columbia Gas & Elec.
/
of N. Y. at 843
2against 33; International Harvester at 50%
1
at 33/
against 53; J. I. Case Threshing Machine at 102
against 92 ex-div.; Sears, Roebuck & Co. at 49%
against 49%; Montgomery Ward & Co. at 18%
against 18%; Woolworth at 56% against 57½;Safeway Stores at 47% against 46; Western Union Telegraph at 126% against 129; American Tel. & Tel. at
177% against 180¼; Int. Tel. & Tel. at 22% against
8 against 111; United
/
23; American Can at 1127
States Industrial Alcohol at 58 against 58; Commercial Solvents at 16% against 15½; Shattuck &
4 ex-div. against 23; Corn Products at 72
3
Co. at 22/
against 74%, and Columbia Graphophone at 8%
4.
/
against 73
2
1
Allied Chemical & Dye closed yesterday at 188/
against 184 on Friday of last week; E. I. du Pont de
8; National Cash RegisNemours at 87% against 851/
2; International Nickel at
1
4 against 29/
1
ter at 32/
8; Timken Roller Bearing at 44%
/
147
8 against 161/
2; Yel1
against 42%; Mack Trucks at 37 against 39/
Johns-Man9%;
10
against
low Truck & Coach at
ville at 55 against 53%; Gillette Safety Razor at 23
4; National Dairy Products at 39%
1
against 26/
against 39½; National Bellas Hess at 3 against 3%;
2 asked against
1
Associated Dry Goods at 24 bid, 24/
24%; Texas Gulf Sulphur at 46% against 49; Amer2; General
1
ican Foreign Power at 30% against 29/
78 ex-div.; Air
American Tank Car at 60 against 63'/
4; United Gas Improve1
Reduction at 101 against 98/
2
/
,
and
Columbian Carbon at
261
against
27
ment at
4.
1
77% against 79/
'The steel shares in their fluctuations accurately
portrayed the course of the general market, both
8
/
tip and down. U. S. Steel closed yesterday at 1407
4 on Friday of last week; Bethlehem
1
against 139/
4
Steel at 53% against 5434; Vanadium at 553
13%
at
&
Steel
against 50%, and Republic Iron
against 15%. In the motor stocks the violent fluctuations in Auburn Auto have been the feature.
8 against 34
/
General Motors closed yesterday at 347
2against 16;
1
on Friday of last week; Chrysler at 16/
/8 against 25%; Auburn Auto at
Nash Motors at 267
2 ex-div. against 86½; Packard Motor Car at
1
106/
8 against 8%; Hudson *rotor Car at 23 against
/
87
2, and Hupp Motors at 8% against 8%. The
1
22/
rubber stocks are very little changed. Goodyear
2
1
8 against 47/
/
Tire & Rubber closed yesterday at 477
at
week;
Rubber
of
States
last
United
Friday
on
2 agailist 13%, and the preferred at 23%
1
413/
2.
1
'against 21/
The railroad list continued under pressure, but
shared in the Sharp recovery. Pennsylvania RR.
closed yesterday at 59 against 56 on Friday of last
2 against 23%; New York
1
week; Erie RR. at 27/
4; Baltimore & Ohio at
1
Central at 119 against 116/
at 78% against 75%;
Haven
New
70% against 63;
2; Southern
1
175/
against
2
1
/
179
at
Union Pacific
s-Texas
Missouri-Kansa
96%;
against
4
1
/
95
Pacific at
4
at 20 against 18%; St. Louis-San Francisco at 493
4 against
/
4; Southern Railway at 573
3
against 47/
[VoL. 131.
2against 57; Chesapeake &
1
581/
2; Rock Island at 53/
4
1
Ohio at 41 against 38%; Northern Pacific at 50/
.
2
1
/
59
against
60
at
2,and Great Northern
1
against 49/
week,
the
in
early
sharply
The oil shares broke
but shared in the later recovery. Standard Oil of
N. J. closed yesterday at 47% against 50 on Friday
of last week; Standard Oil of California at 45%
against 44%; Simms Petroleum at 7 against 6%;
8; Atlantic Refining
/
Skelly Oil at 11% against 107
8 against 18½; Texas Corp. at 31% against
/
at 187
34%; Pan American B at 25 bid 33 asked against
38 bid; Richfield Oil at 5 against 5%; Phillips Petroleum at 13% against 14%; Standard Oil of N. Y.
2,and Pure Oil at 9% against 10.
1
at 22 against 23/
The copper stocks have been weak beyond all
others, and are nearly all lower owing to the failure
of the attempt to bolster the price of the metal.
4 against
1
Anaconda Copper closed yesterday at 26/
Copper at
week;
Kennecott
last
of
2 on Friday
1
31/
8 against
/
4; Calumet & Hecla at 87
/
20%8 against 243
834; Calumet & Arizona at 32% against 35; Granby
Consolidated Copper at 15 against 15; American
Smelting & Refining at 42 against 46, and U. S.
Smelting Refining & Min. at 20 against 23.
Stock exchanges in the important European financial centers moved with much uncertainty this week,
owing partly to the quickly varying reports from
New York. In the initial dealings of the week prices
declined on the London,Paris and Berlin exchanges,
and the downward trend was continued for several
subsequent sessions at London and Paris, with the
Berlin Boerse somewhat better. Prices moved up
sharply on all the European exchanges Thursday,
after receipt of overnight reports of Wednesday's
improvement here. Dispatches from all the centers
mentioned indicated that the chief stimulating influence was the about-turn at New York. Apart
from this sympathetic movement of the international
markets, few developments of any significance occurred. A general uncertainty in the political sphere
acts as a depressant much of the time. This factor
was pronounced in France where Senator Theodore
Steeg, the newly appointed Premier, attempted all
week to form a Cabinet. Year-end dividend declarations by important companies at London are showing heavy reductions, and this is exerting a correspondingly bad effect on investment interest. Additional efforts to reduce retail prices of merchandise
were made in Germany and France this week, but
the success achieved was not notable. Indices of
wholesale prices continue to drop, meanwhile, although the rate of decline is somewhat less than
formerly. Unemployment continues to increase in
Britain, France am' Germany, but at a relatively
slow pace, compared to earlier weeks of the year.
The London Stock Exchange was depressed in the
initial session of the week, owing to unfavorable
week-end advices from New York. Anglo-American
stocks were marked down sharply and British industrials also were soft. British funds dropped in
the early trading, but regained their losses later in
the day. Monday saw the start at London of a new
account of three weeks' duration, as against the
usual fortnightly settlement, the extension being
due to the holidays. As such long accounts are unpopular, some of the weakness in the market was
attributed to this factor. A slightly better tone
appeared at London Tuesday, but some weak spots
remained and unsettled the dealings. International
Dm 20 1930.]
FINANCIAL CHRONICLE
issues and British industrial stocks were hesitant,
while the gilt-edged group lost ground. British
American Tobacco was the outstanding good feature
following publication of an earnings report and
maintenance of dividends. Discouraging advices
from New York unsettled the London market Wednesday, and some unfavorable company announcements also were a factor in this session. Virtually
every section developed renewed weakness, with international trading favorites particularly soft. British funds also declined, although a slight turn for the
better appeared in this department late in the day.
With a better trend finally reported from New York,
stocks moved upward in vigorous fashion at London
Thursday. Anglo-American issues were favored,
with some excitement prevalent in the first half hour
as levels were adjusted to the higher figures reported.
Buying waned late in the day and an easier tendency
set in. The trend was followed on a modified scale
in other sections, with the exception of British funds,
which remained quiet and unchanged. Prices were
firm in most sections of the London market yesterday, but business was of small proportions. British
funds lost a little ground.
Stocks listed on the Paris Bourse plunged downward Monday, as a wave of pessimism developed.
To the difficulties of forming a new Government was
added'news of the illness of former Premier Poincare, who enjoys unusual confidence among all
classes in France. Reports of weakness on the New
York market also contributed to the decline, which
reached substantial proportions notwithstanding a
moderate turnover. All stocks again declined
sharply Tuesday, with Spanish copper shares especially depressed on account of the disturbances in
Spain. French steel issues also suffered heavily.
The atmosphere was the most gloomy in a long time,
reports said. Depression continued in Wednesday's
session at Paris, notwithstanding a small early
movement toward recovery. There were evidences,
one report said, that the discouragement was due
to the psychological effect of conditions in the
United States, and to business and bank failures in
France. Prices moved to new low levels in many
parts of the list, with French bank stocks particularly heavy. Improved overnight reports from New
York finally occasioned a rally on the Bourse Thursday. The market opened firm and a brisk recovery
developed, with short covering pushing prices forward. Some unsettlement again appeared as the
session progressed, but most issues finished higher
for the day. Small and irregular movements occurred at Paris yesterday.
The Berlin Boerse was weak in the opening session, as the German market followed the trend of
other international exchanges. Prices declined precipitately in the first hour and the banks were reported to have intervened. Selling orders dwindled
late in the day and a slight improvement appeared.
Net declines ranged from one to five points. Tuesday's session at Berlin was far more favorable, with
prices moving upward steadily after an uneasy start.
Reichsbank shares and the potash and electrical issues were especially firm. Quotations at the close
were the highest of the day. The Boerse was again
uncertain at the opening Wednesday, but offerings
were small and price changes not important. The
early softness was attributed to the unfavorable reports from New York. Improvement followed, however, and the early losses were regained while many
3921
issues closed at higher levels. An uncertain trend
appeared Thursday at Berlin. Prices advanced in
the early trading, but the gains were not maintained
and most issues showed a net loss for the session.
Potash stocks were particularly weak, reports said.
Quotations were again somewhat easier on the
Boerse yesterday.
Further efforts of a delicate diplomatic nature
are to be made to secure full participation by France
and Italy in the terms of the London naval treaty
of 1930. It is held in more than one quarter that
settlement of the naval differences between these
two countries is advisable as a preliminary to the
world disarmament conference for which a date is
to be set at the January meeting of the League of
Nations Council. United States Ambasador Hugh S.
Gibson, who headed the American delegation to the
recent meeting of the Preparatory Disarmament
Commission, visited both Paris and Rome late in
October with a view to stimulating the naval conversations. He has informed the State Department,
a Washington report to the New York Times states,
that the discussions have not been concluded and
will be resumed after settlement of the French cabinet crisis. Secretary of .State Samson considered
the prospects hopeful, the dispatch said, as Ambassador Gibson had sent optimistic reports. Full discretion is enjoyed by Mr. Gibson in his efforts to
further an accord between the two Continental powers, it is remarked. "Secretary Stimson emphasized,"
the dispatch states,"that the negotiations were being
conducted by France and Italy, and that the United
States was not attempting to direct the conversations but merely was trying to be of any assistance
acceptable to the negotiators." It was disclosed also
that Secretary Stimson has conferred on this matter
in Washington from time to time with Paul Claudel,
the French Ambassador, and Nobile Giacomo de
Martino, the Italian Ambassador.
Complete evacuation of the Saar area by French
troops on Dec. 12 signalized the temporary adjustment of the conversations regarding this territory
carried on in recent months by the French and German Governments. Although the number of troops
involved in the withdrawal was small, the step marks
an important phase in post-war readjustments, since
it leaves German territory entirely free of Allied
forces for the first time in twelve years. Evacuation of the Rhineland, completed on June 30, this
year, was occasioned by German acceptance of the
Young plan. The Saar area was also discussed in
the general European diplomatic and financial readjustment of the past two years, but settlement of the
problem presented by the Saar mines was left to a
special commission of Germans and Frenchmen
which met at Paris early this year. No agreement
was reached by this commission. The Saar mines
were awarded to France for 15 years and the area
was placed under League of Nations control until
1935, when a plebiscite is to be held to determine
its future status. It is generally conceded that the
populace will vote to adhere to Germany and the
recent negotiations aimed at the earlier return of
the territory to the Reich with compensation to
France for the previous relinquishment of the mines.
In view of the failure of the commission to settle
this problem, agreement was reached at Geneva in
September for the withdrawal of the French troops,
3922
FINANCIAL CHRONICLE
and this action has now been consummated. Foreign Minister Briand of France, who agreed to the
evacuation, made the reservation that in the event
of trouble in the Saar, France should have the right
to reoccupy the territory.
Um 131.
tary of State for India, replied to interpellations
in the House of Commons on Tuesday on present•
conditions there. Cause for "grave anxiety" would
be presented by a failure of the Round Table Conference, he said. Although declaring that the general situation in India was showing gradual improveAn uncertain political situation in Great Britain ment, Mr. Benn spoke of the increasing unrest and
continues to reflect the perturbation occasioned in violence in several important sections of that
that country by the current world-wide business de- country.
pression and its necessarily drastic effect on British
A new Cabinet, formed in France by Senator
trade and employment. Parliamentary debate ranged
this week over all the subjects of most intimate con- Theodore Steeg, was upheld in its first test before
cern as possible political aids. The widening dif- the Chamber of Deputies late Thursday, bringing to
ferences on tariffs between the Conservatives on the a tardy end the political crisis that began Dec.4 with
one hand and the Labor Government and the Liberals the overthrow of the Tardieu Ministry. Premier
on the other, brought more than a little embarrass- Steeg is a leader of the important Radical-socialist
ment to Prime Minister MacDonald. In accord- group in the Chamber, which had defeated the atance with the free trade principles of the Labor tempts of Louis Barthou and Pierre Laval to form a
Government, announcement was made several weeks Government earlier this month. In political comago that an act regulating the dye industry would plexion the new Cabinet belongs definitely on the
be allowed to lapse at the end of this year. This Left side of the Chamber, whereas the Tardieu regime
meant the removal of protective duties on dyestuffs. was based mainly on Right parties. The task of orThe House of Lords, which is overwhelmingly Con- ganizing a Cabinet was made unusually difficult for
servative, adopted an amendment Monday intended M. Steeg by the raging political storm that followed
to keep the dyestuffs act in operation for another the Oustric bank scandals. M. Tardieu's defeat was
year, and the question was again argued in the due essentially to disclosures of a connection between
House of Commons Thursday. The Government was the now discredited M. Oustric and one of the Minupheld in the voting that followed, but the margin isters in the Tardieu regime. A parliamentary inof safety was only six votes, which is considered vestigating committee continued this week its inas a rebuff to the Labor regime.
quiry into the bank failures, with politics a domiDebates of much general interest were also held nant factor in the situation. Premier Steeg comthis week on debt payments by Britain to the United pleted the list of his Ministers last Saturday, but
States and on unemployment. Questions regarding he was promptly faced with disconcerting political
debt payments were occasioned by the British pay- maneuvers when several Under-Secretaries withdrew
ment of $94,390,000 last Monday. It was explained from the proposed Government. The difficulty of
by the Financial Secretary of the British Treasury holding the Cabinet together was further illustrated
that England has now paid on the war-debt account Thursday, when Minister of Pensions Robert Thouto the United States $700,000,000 more than she has myre and two more Under-Secretaries resigned a few
received from German reparations and war-debt pay- hours before the Government went before the Chamments from her Continental allies. In the discus- ber. This was described in dispatches as one of the
sion of unemployment, Herbert Morrison, Minister worst embarrassments which a new Ministry in
of Transport, summarized the schemes for public France ever had to face.
works at home L ad in the Colonies, which call for
In the voting that followed the Ministerial Decan aggregate expenditure of about $680,000,000. The laration of Premier Steeg, the new Cabinet was
largest single item, amounting to $245,000,000, is upheld by 291 to 284, or the narrow margin of seven
for road construction. Mr. Morrison estimated that votes. "Nothing that could have been done to underwork will be found for 4,000 men a year for every mine the chances of the Ministry was left undone,"
$5,000,000 expended. If all the projects on the list a Paris dispatch to the New York "Times" said.
were in full swing, there would be work provided Even the withdrawal of one Minister and two Underfor more than 500,000 men, he declared. A British Secretaries at the eleventh hour was considered
Government "White Paper," issued on this matter merely an attempt to defeat the Ministry in advance.
Thursday, gave much the same figures, and explained "During the whole debate, which never rose above
the unemployment difficulties as largely due to in- the level of a party squabble, the repeated cheers
ternational developments.
from the Right seemed to indicate defeat for the Govdifficulties
on
Some
the question of minorities in ernment," the report said. "That the Ministry reIndia have been encountered in recent weeks at the cruited any votes from the Center in such a fierce
Indian Round Table Conference in London, and political fight indicated tellingly the effect which
progress at this meeting has been slow. The com- the Oustric scandal has had," it was added. The
mittee of the whole delegation, which is attempting Ministerial Declaration was not striking, as it dealt
to draft a Federal Constitution for India that will chiefly with the need for the fullest investigation
be acceptable to all factions within that country as into the bank matters. The foreign policy of M.
well as to the British Parliament, found itself fac- Briand would be followed, Premier Steeg said, while
ing an impasse when the minorities question was internal peace would be sought by measures designed
debated by the Hindus and the Moslems. Wide to improve the economics of France. "The favordivergence in the views of these two religious groups able vote means," a report to the New York "Herald
caused some anxiety early this week regarding the Tribune" said, "that the Steeg Cabinet is probably
success of the conference. Arrangements were made safe until after the Christmas vacation, but there
Wednesday for informal talks between the leaders seems little chance for it to survive far into the
of the two groups, and Prime Minister MacDonald next session." The vacancies in the Cabinet are not
will lead the discussions. Wedgwood Benn, Secre- to be filled immediately, it is said. Much disorder
Dnc. 20 1930.]
FINANCIAL CHRONICLE
was occasioned in the Chamber during the final
voting, and the President of the Chamber put on his
hat and suspended the session at one time. More
than 1,000 votes were cast by the Deputies, although
less than 600 should have been placed in the urn,
and an official recount was necessary. The Cabinet
of Left parties, as placed before President Doumergue last Saturday by Premier Steeg, follows:
Premier and Minister a Colonies—Theodore Steeg.
Interior—Georges Leygues.
Justice—Henri Cheron.
Foreign Affairs—Aristide Briand.
Finance—Louis Germain-Martin.
Budget—Maurice Palmade.
War—Louis Barthou.
Marine—Albert Sarraut.
Education—Camille Chautemps.
Public Worlu—Edouard Dladier.
Commerce—Louis Loucheur.
Agriculture—Victor Boret.
Labor—Edouard Grinda.
Pensions—Robert Thoumyre.
Air—Paul Painleve.
Merchant Marine—Charles Danielou.
Posts and Telegraph—Georges Bonnet.
Public Health—Correz Queuille.
An exposition of the Italian Government's policy
of price and wage reductions, made by Premier
Benito Mussolini before the Senate in Rome Thursday, occasioned some interesting comments on the
effects experienced in Italy from developments in
the United States during recent years. The unfavorable turn in the economic situation of Italy is due
to the stock market crash in the United States late
in 1929, Signor Mussolini said. The need for economy was emphasized in the address, but reduction
in Italian military expenditures cannot be made,
Premier Mussolini declared, "while all the rest of
the world talks peace and prepares feverishly for
war." Salary reductions recently decreed for all
Government employees are necessitated, he added,
by the desire to meet the budgetary deficits without
resorting to new taxes. The Premier asserted that
the financial situation in the United States so
affected Italy that a budgetary surplus of 65,000,000
lire ($3,400,000) had turned into a deficit of 900,000,000 lire ($47,100,000). During the summer of
1929, he said, Italy was well on the way to normal
economic conditions, when suddenly the "black
days" of the American stock market crash broke
upon the world. "The American economic formula
of mass production and mass consumption is a mistake," he continued, "because production is by machine and consumption is by man. The formula was
logical merely from a mechanical view, but a small
obstacle was enough to cause its collapse." Stock
market speculation in this country during recent
years and the crash of last year were briefly reviewed by Ii Duce, who said that the "crisis is not
yet over, as prosperity has been followed by lines
of those who await soup and bread in the great cities
of the United States." The Federal Farm Board
was declared a failure in the address, while the
accumulation of gold by the United States and
France was characterized as "congestion and indigestion." Premier Mussolini said that on Aug. 13
he had issued instructions that passports be granted
in the largest numbers possible to all countries of
the world except the United States. The American
exception was occasioned by exhaustion of the
American quota.
Spain was in the throes of revolutionary movements all this week, as the Madrid Government sueces,sfully delft first with a smell military rebellion,
3923
then with a revolt of aerial forces and finally with
general strikes in many important cities. These
various developments were apparently related incidents in a general plan of revolutionary forces to
set up a republic. Agitation for the overthrow of
the monarchy has been prevalent in Spain for almost
10 years, but it has been particularly marked since
the Berenguer Government came into office early
this year. Student riots and political speeches with
a decided republican tinge formed the major part of
the movement for a time, but in recent months general strikes of short duration were called in such
important centers as Madrid, Barcelona, Malaga,
Valencia, Cadiz, and Seville. Martial law was imposed by the Government in November to meet this
situation and strike agitators were imprisoned. The
movement against the monarchy finally flared into
open rebellion Dec. 12, when a body of 500 officers
and men of the Spanish army declared for a republic
at the little town of Jaca, near the French frontier.
Troops were promptly dispatched to this point from
other centers in Spain and stringent measures were
taken to deal with the situation. Strict censorship
was established and newspapers were forbidden to
publish any reports of the revolt. The Berenguer
Cabinet met in an all-night session and issued a note
early Dec. 13 asking public confidence.
Loyal Spanish troops encountered the small rebel
force last Saturday near Ayerbe in the Pyrenees,
50 miles from Jaca. A Government report on the
developments indicated that the rebels were rapidly
driven back and that more than a hundred of the
insurgents were quickly captured. Jaca was entered
by the Government forces later in the day without
resistance and the entire garrison of 500 men were
taken prisoners. The rebel force in the town laid
down its arms and threw itself on the Government's
mercy, it was said. A statement issued in Madrid
by the Government characterized the Jaca rebellion
as "Republican and Communist," and added that it
had collapsed utterly. This internecine strife, a
dispatch to the New York "Times" said, was the
first in Spain since General Campa led the republican revolt of 1886. Officers involved in the Jaca
rebellion were tried before Courts Martial almost
immediately, and two of them, Captains Galan and
Garcia Hernandez, were executed Sunday. Four
others were sentenced to life imprisonment. "There
is a feeling of tension in Madrid to-night, intensified
by the executions, which have produced a painful impression among the populace," a report to the New
York r'Times" said. A Government communication
stated that conditions were calm and peaceful
throughout Spain, but it was admitted that attempts
were being made to institute a "revolutionary general strike" Monday.
A further spectacular phase of the movement appeared Monday, when a force of aviation officers
and enlisted men revolted at Cuatro Vientos airport
near Madrid under the leadership of Ramon Franco,
leading aviator of Spain, who escaped recently from
a prison in which he was confined on a charge of
disloyalty. A number of military planes, with red
paint smeared over the Spanish Air Force markings,
circled over Madrid for a few hours dropping revolutionary handbills and calling on all citizens and
soldiers to aid the movement. Loyal artillery forces
near the airport put a quick end to these demonstrations when they trained field guns on the rebels and
began firing. Ramon Franco and his immediate
3924
FINANCIAL CHRONICLE
followers seized several airplanes and flew over the
border to Lisbon, Portugal, where they were interned. The Madrid regime promptly started an
aerial propaganda of its own over the capital to
counteract the handbills dropped by the rebellious
aviators. All of Spain was declared in a state of
siege, which is the Spanish equivalent of martial law.
Civil guards and armed police invested the capital,
and in a round-up of insurgents and republican leaders more than 1,200 arrests were made. Ramon
Franco and his followers in Lisbon deplored the failure of their plans, but stated that the republican
movement will continue in Spain and that a republic
will be proclaimed in one month. It was denied that
there was anything Communistic in the revolt.
The last phase of the revolt was reached Tuesday,
when general strikes were called in many centers
throughout Spain. An official statement disclosed
that the provinces in the capitals of which general
strikes occurred included Coruna, Huelva, Jaen,
Logruno, Navarro, Santander, Viscaya, and Zaragosela. Strikes which were not general occurred in
the provinces of Cordoba, Granada, Lerida, and
Seville. "The Government's policy," a dispatch to
the "Times" said, "is to segregate every town in
which there is a strike and prevent concerted republican action by keeping firm control of all communications." To other regulations were added, Tuesday,
close restrictions on transportation. No one was
allowed to leave any city in Spain without police
permission. Notwithstanding the extreme precautions, a squadron of six airplanes flew over Barcelona Tuesday, dropping subversive leaflets. Strikes
involving 500,000 workers continued in Spain Wednesday, according to an Associated Press report
from Madrid, but it was admitted that the attempt
to overthrow the monarchy had been decisively
crushed. "The movement to overthrow the monarchy apparently has failed because of poor organization and faulty timing," a New York "Times"
correspondent said. The general strike began to
break down Thursday, and many thousands of workers returned to their jobs, leading observers in Spain
to the conclusion that the grave emergency had
passed. In civil disturbances and riots that were
reported in connection with the revolt, more than 20
persons were killed, while many others were injured.
King Alfonso and Queen Victoria remained at the
palace in Madrid throughout the week of disturbances.
Financial arrangements of considerable importance have been made by the Warsaw Government,
which is to receive a $30,000,000 loan from the Swedish match interests oin return for an extension of
the Polish State match monopoly. The project has
been placed before the newly-elected Sejm, or lower
House of the Polish Parliament, by Finance Minister Matuszewski, according to a Warsaw report of
Monday to the New York "Times." Interest on the
loan will be 7%,the dispatch states, and the Swedish
match group will be the holder of the monopoly for
a further 20 years from 1945 to 1965. Matches are
to be raised 25% in price to a little more than lc. a
box, while a special tax is to be levied on lighters of
all kinds. "The Kreuger loan will certainly be
severely criticized by the Opposition," the report
said, "but nevertheless it will be authorized by the.
Sejm, as the Government has a majority." About
$5,000,000 of the loan is to be applied to redemption
(VOL. 131.
of debts on the monopoly, it is indicated, while
$8,000,000 will be spent for expansion of the harbor
of Gdynia and railroad construction. The remainder will be applied to Government debt and
other purposes.
Marshal Joseph Pilsudski, dictator of Poland,left
Warsaw for southern Europe Monday, after resigning his post as Premier early this month. Colonel
Walery Slawek, trusted aide of the Dictator, again
was named Premier, and a slight reshuffling of the
Pilsudsky Ministry was occasioned by this change.
No political significance attaches to the change.
The newly-elected Sejm, in which the Pilsudski
party has a majority of 238 out of 407, assembled
for its first session last week. The opposition
groups promptly protested against the imprisonment
of seven Deputies who were arrested during the electoral campaign and are still held in confinement,
but such protests have so far proved ineffectual.
The Government announced that the Constitutional
privilege of Parliamentary immunity would no
longer be recognized. Even discussion of the matter
was refused early this week. The budget for 1931-32
was introduced in the Sejm late last week, with
expenditures estimated at $319,211,000, or $18,000,000 under the previous fiscal year. Income was
placed at $321,168,000.
Unsettlement in the affairs of Latin American
countries was emphasized this week by disturbances
in Guatemala, where a provisional government,established late last week, was overthrown Wednesday
and another provisional regime set up. These developments followed the resignation of Lazaro
Chacon as President, when serious illness interfered
with the discharge of his duties. Baudillo Palma
was named as his successor under the Constitution,
but the members of a military junta held different
views and a revolt was quickly organized. General
Manuel Orellana, as head of the junta, took over the
provisional presidency Wednesday after a sharp
encounter between the two factions in Guatemala
City. The fighting resulted in death or injury to
57 persons, among whom were General Mauro de
Leon, Minister of War, and Colonel Filiberto Aguilar Bonilla, a member of the Presidential staff. The
diplomatic corps in the Guatemalan capital was informed that the Presidency would be returned to
Senor Chacon when he is able to resume his duties.
This incident brings before the United States Government a delicate problem of recognition, since
Washington is committed to the Central American
policy of non-recognition of revolutionary regimes.
The question will probably remain unsettled, Washington reports indicate, until the physical condition
of General Chacon, the elected President, becomes
better known.
Quiet conditions were restored in Cuba this week,
although there were again indications of widespread
plots against the Machado regime. There was no
repetition of the student riots of previous weeks, but
the suspension of Constitutional guarantees remained in effect. A Presidential decree was issued
last Saturday discharging 40 professors of the Provincial Institute on charges of encouraging sedition
among students. Debate in the Cuban House of
Representatives on the political situation Thursday
was followed by the adoption of a resolution recognizing President Machado's constitutional right to
continue as President until May 20 1935. Factional
DEC. 20 1930.]
disputes are increasing in Uruguay, according to
Montevideo reports, as the counting of votes in the
Nov. 30 elections slowly progresses. All parties are
agreed that there has never been an election in
Uruguay with so many frauds and irregularities
and demands are being made that the election be
annulled and a new one called. Heated Congressional debate on the financial policy of the Mexican
Government has been in progress in Mexico City
during the past two weeks. President Ortiz Rubio
was given extraordinary financial powers early in
the month for the use of public funds in the alleviation of the economic crisis in that country. Finance
Minister Luis Montes de Oca was severely criticized
by several Senators, but a crisis in the Cabinet was
avoided when he defended his policies and described
conditions in Mexico as a reflection of the worldwide depression. An important amendment to the
Mexican agrarian law was adopted by the Congress
late last week, intended to give foreign capital guarantees of sanctity for property rights.
Failure in Europe this week of two conferences,
of which the first was called to regulate exportation
of sugar by countries that have surplus production,
while the second debated the stabilization of world
prices of artificial silk, illustrates once again the
difficulties faced by those who would attempt to
control production or prices of world commodities.
Rubber in the Malay Peninsula and coffee in Brazil
present the most outstanding instances of recent
years where production and price control had to be
abandoned after disastrous results. An international sugar conference met at Brussels last week
after an agreement on Cuban and Javan exportation
for the next five years had been reached at Amsterdam. The problem at Brussels was to bring under
similar control the exportation of this commodity
from Germany, Czechoslovakia, Poland, Hungary,
and Belgium, which are the important exporting
nations of Europe. A demand by the German representatives for a larger share in the scheme of international allocations than the other delegations were
prepared to grant caused the breakdown of the sugar
parley last Monday. The other delegations termed
the German demands "exorbitant and unjustified,"
but the Germans explained that the Reich is under
the necessity of exporting maximum quantities of
sugar as well as all other products in order to prevent economic collapse. They declared, a New York
"Times" dispatch said, that reparations payments
as well as private obligations abroad could be met
only by an aggressive policy of exportation. A provisional accord on a five-year restriction plan, made
contingent upon German entry by Jan. 15, was
signed by representatives of the producers in the
other countries Tuesday. A world conference of
leading producers of artificial silk came to an unsuccessful end in London last Sunday. This meeting
was designed, a dispatch to the New York "Times"
said, to "stabilize prices and stave off further depression in their trade." It adjourned, however,
with "virtually nothing accomplished," other than
an exchange of views. The possibility of a resumption of informal talks at a later date was suggested.
There have been no changes this week in the discount rates of any of the European central banks.
Rates remain at 6% in Spain; at 51/2% in Austria,
Hungary, and Italy; at 5% in Germany; at 4% in
3925
FINANCIAL CHRONICLE
1
2% in Sweden and DenNorway and Ireland; at 3/
1
2%
mark; at 3% in England and Holland, and at 2/
in France, Belgium, and Switzerland. In the London open market discounts for short bills yesterday
/
8% against 2 7/16% on Friday of last
were 21/2@25
1
2% against
week, while three months bills were 2/
2 5/16% on Friday of last week. Money on call in
/
8%. At Paris the open
London yesterday was 15
1
2%, and in Switzerland
market rate continues at 2/
at 11/
8%.
The Bank of England statement for the week
ended Dec. 17 shows a further reduction in reserves
of £8,800,000, which was brought about by a loss of
£1,132,549 of gold and an expansion of £7,667,000
in circulation. Total reserves now aggregate £39,175,000 compared with £29,034,000 a year ago.
The Bank's gold holdings last Wednesday were
£151,316,227 in comparison with £140,734,339 last
year. Public deposits increased £633,000, while
other deposits decreased £7,821,481. Other deposits
include bankers' accounts and other accounts. The
former fell off £7,817,445 and the latter £4,036. The
reserve ratio dropped from 43.03% a week ago to
37.56% now. A year ago it was 27.02%. Loans
on Government securities decreased £405,000 and
those on other securities rose £2,021,690. The
latter consist of "discounts and advances" and
"securities" which increased £429,699 and £1,591,991
respectively. The rate of discount is unchanged at
3%. Below we show comparatively the different
items for five years:
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
1930
1920
1928
1927
1926
Dec. 17.
Dec. 18.
Dec. 19.
Dec. 21.
Dec. 22.
372,140,000
Circulation
6,523,000
Public deposits
97,774,358
Other deposits
Bankers accounts 64,294,938
Other accounts_ _ _ 33,479,420
Goverrinft securities 53,886,247
29,124,401
Other securities
Diset. & advances 5,341,121
23,783,280
Securities
Reserve notes & coin 39,175,000
Coln and bullion_151,316,227
Proportion of reserve
37.56%
to liabilities
3%
Bank rate
371,698,000
9,860,000
97,582,667
62,065,360
35,517,307
65,143.855
31.195,251
10,629,732
205,565.519
29.034,000
140,734,339
27.02%
5%
384,110,000 138,778,715 141,285,355
11,143,000 18,444,845 12,134,540
96,212,000 102,912,214 107,939,596
57,756,000 42,983,992 31,337,539
36,142,000 64,954,661 76,279,419
31,395,000 31,352,000 30,407,860
155,507,575 150,381,205 151,943,215
29.24%
414%
25.00%
414%
25.19%
5%
a On Nov.291928 the fiduciary currency was amalgamated with Bank of England
note issues, adding at that time £234,199,000 to the amount of Bank of England
notes outstanding.
The Bank of France statement for the week ended
Dec. 13, records a gain in gold holdings of 548,479,547
francs. The total of the item now stands at 52,900,460,037 francs, as compared with 41,248,433,556
francs last year and 31,722,109,484 francs the year
before. A decrease is shown in credit balances
abroad of 536,000,000 francs and an increase in bills
bought abroad of 265,000,000 francs. Notes in
circulation fell off 540,000,000 francs, reducing the
total of the item to 75,298,678,280 francs. Total
circulation a year ago amounted to 66,903,847,940
francs. French commercial bills discounted and
advances against securities reveal declines of 62,000,000 francs and 27,000,000 francs, while creditor
current accounts rose 660,000,000 francs. Below
we give a comparison of the different items for the
past three years:
BANK OF FRANCE'S COMPARATIVE STATEMENT.
Changes
Status as of
Dec. 131930. Dec. 141929. Dec. 151928.
for Wee/c.
Francs.
Francs.
Francs.
Francs.
Gold holding8_ ._ _Inc. 548,479,547 52,900,400,037 41.248,433,558 31,722,109,484
536,000,000
6,376,384,949
abr'd_Dec.
7,190,718,755
bals.
Credit
14,031.438.709
French commercial
bills discounted _Dec. 62,000,000 6,988,399,295 8,833,315,070 3.567,980,268
Mils bought abed_Inc. 265,000,000 19,377,312,983 18,173,899.597 19,139,752,850
Adv.agst.securs__Dec. 27,000,000 2,977,572,321 2.629,491,336 2,252,633.183
Note circulation Dec. 540,000,000 75,298,678,280 66,903.847,940 61,420,539.180
Cred. curt, accts__Inc. 660,000,000 23,081,362,594 19,902,415,232 19,661.474,653
3926
FINANCIAL CHRONICLE
The Bank or Germany in its statement for the
second week of December showed an increase in gold
and'bullion of 25,425,000 marks. Owing to this gain
the total of the item now stands at 2,215,702,000
marks, which compares with 2,247,135,000/marks
last year and 2,690,356,000 marks.two years ago.
Increases appear in reserve in foreign currency of
13,944,000 marks, in silver and other coin of 13,214,000 marks and in notes on other German banks of
5,075,000 marks, while the items of deposits abroad
and investments remain unchanged. Notes in circulation decreased 183,524,000 marks, reducing the
total of the item to 4,256,565,000 marks, as compared
with 4,588,925,000 marks at the corresponding week
a year ago. The items of advances, other assets
and other liabilities record gains of 5,697,000 marks,
4,777,000 marks and 59,344,000 marks, while bills
of exchange and checks and other daily maturing
obligations fell off 235,415,000 marks and 43,103,000
marks respectively. A comparison of the various
items for the past three years is furnished below:
REICHSBANK'S COMPARATIVE STATEMENT.
Changesfor
Week.
Dec. 15 1930. Dec. 14 1929. Dec. 15 1928.
Assets—
Reichsmarks.
Reichsmarks. Reichsmark*. Reichsmark:.
Gold and bullion
Inc. 25.425,000 2,215,702,000 2,247,135,000 2.690,356,000
Of which depos.abr'd_
Unchanged
85,626.000
221,803,000 149,788,000
nerve In teen curt._ Inc. 13,944,000 550.866,000 390,781 000 169.737.000
Bills of exch.dr checks.Dec.235,415.000 1.731.522,000 2,479,002,000 1,890,466.000
Silver and other coin--Inc. 13,214,000
92,165.000
161.473.000 100,609.000
Notes on oth.Ger.bks.Inc. 5,075.000
22,144.000
17.421,000
14.146,000
Advances
Inc. 5,697.000
57,745,000
81,430,000
62,597,000
InvestmeuM
Unchanged
92.357,000
102,474,000
92,558.000
Other assets
Inc. 4,777.000 470,477,000 664.805.000 536,119,000
Lfatdffiles—
Notes In circulation__Dee. 183,524,000 4.256,585,000 4.588,925,000 4,424,857,000
0th. daily mat. oblig_Dec. 43.103,000 301,307,000 402,053,000 425,943,000
Other liabilities
Inc. 59,344,000 379,651,000 188,002,000 283,656,000
[VoL. 131.
the doldrums, but on Tuesday rates, which are
largely nominal, were moved fractionally higher for
some of the shorter maturities. Quotations are now
at 2@21/
4% for 30-day money, 21/
4@2/
1
2% for 60
days, and also for 90-day accommodation, 2/
1
2% for
four months,and 2/
/
4% for five and six months.
1 2@23
The demand for prime commercial paper in the open
market continued good, particularly towards the
end of the week, and the offerings were still insufficient to meet the requirements. Rates are unchanged, choice names of four to six months' maturity being quoted at 2%@3%, while names less
well known are offered at 31/
2%.
4@31/
Prime bank acceptances in the open market have
been in good demand this week, but the supply of
bills coming out has been very light and failed to
meet the requirements of the market. The 12 Reserve Banks this week further increased their holdings of acceptances from $243,697,000 to $251,591,000. Their holdings of acceptances for foreign
correspondents were also increased, rising from
$417,422,000 to $434,000,000. The posted rates of
the American Acceptance Council remain at 2% bid
and 1'/
78% asked for bills running 30 days, and also
for 60 and 90 days; 21/
8% bid and 2% asked for 120
days, and 21/
4% bid and 21/
8% asked for 150 days
and 180 days. The Acceptance Council no longer
gives the rates for call loans secured by acceptances.
Open market rates for acceptances also remain unchanged, as follows:
SPOT DELIVERY.
—180 Days-—150 Days—
—120 Days—
Bid. Asked,
Bid. Asked.
Bid. Asked.
Prime eligible bills
24
2
24
24
24
24
—80 Days—
—90Days—
—60 Days—
Bid. Asked,
Bid. Asked.
Bid. Asked.
Prime eligible bills
2
2
14
2
184
14
FOR DELIVERY WITHIN THIRTY DAYS.
24 bid
Eligible member banks
24 bid
Eligible non-member limits
Rates for money in the New York market showed
only minor variations this week from previous
levels, with conditions essentially unchanged.
Funds were in ample supply at all times, notwithstanding large requirements for the mid-month
turnover. Call loans were 2/
1
2% Monday and TuesThere have been no changes this week in the redisday, and renewals Wednesday also were at this figcount
rates of the Federal Reserve banks. The
ure. In the course of the mid-week session demand
following
is the schedule of rates now in effect for
money dropped to 2% and remained at this level
the
classes of paper at the different Reserve
various
subsequently. There was no overflow into the unofbanks:
ficial "Street" market Monday, but funds were
DISCOUNT RATES OF FEDERAL RESERVE HANKS ON ALL CLASSES
available at a concession of /
1
2%, or a rate of 2%,
AND MATURITIES OF ELIGIBLE PAPER.
in the Street Tuesday. Trades were reported in the
Rate in Effect
Date
Previous
outside market at 13
Federal Reserve Bank.
on Dec. 19.
Rate.
/
4% Wednesday, and 1/
Established.
1
2%
Thursday and yesterday. Time loans were slightly Boston
3
July 3 1930
34
New York
286
3
June 20 1930
firmer. Repayments of brokers' loans against stock Philadelphia
4
886
July 3 1930
Cleveland
34
4
June 7 1930
Richmond
and bond collateral were still in progress on an Atlanta
4
July 18 1930
33.4
4
July 12 1930
34
34
4
June 21 1930
extensive scale this week, the tabulation of the Fed- Chicago
Rt, LOUIS
314
4
Aug. 7 1930
84
4
Sept. 12 1930
eral Reserve Bank of New York. for the week to Minneapolis
Kansas City
3'q
4
Aug. 15 1930
Dallas
34
4
Sept. 9 1930
Wednesday night showing a reduction of $91,- Ran
Francisco
An, A lann
514
4
000,000. This drop was the twelfth consecutive
weekly decline, bringing the total reduction since
Sterling exchange is fairly active, though less so
Sept. 24 to $1,214,000,000. Gold movements at New than last week, and has ruled
on average fractionally
York for the week to Wednesday night, as reported higher. The most active
trading and the higher
by the Reserve Bank, consisted of imports of ranges were reached on
Thursday. The range this
$6,068,000, with no exports and no changes in the week has been from 4.85 11-32 to 4.85 9-16 for
stock of gold held ear-marked for foreign account. bankers' sight, compared with
4.853
4 to 4.853
% last
week. The range for cable transfers has been from
Dealing in detail with the call loan rate on the 4.85 9-16 to 4.859, compared with
4.857
%
% to 4.855
Stock Exchange from day to day, the call loan rate a week ago.
The underlying factors in the foreign
on Monday and Tuesday ruled at the single figure exchange
market are unchanged from last week.
of 21/
2%, this being the rate both for renewals and Most of the activity
in sterling at present is due to
for new loans. On Wednasday, however, after re- preparation
for the year-end settlement and in a
newals had again been effected at 2/
1
2%, there was minor degree to individual gift transfers charactera drop in the rate to 2%, and this latter thereafter istic of
the holiday season. Sterling continues esperemained the rate for call loans on the Stock Ex- cially easy in terms of francs, marks, guilders, Swiss,
change the rest of the week. Time money is still in and some of the other European units. The Bank
http://fraser.stlouisfed.org/
Federal
Ammo.Reserve Bank of St. Louis
4
DEC. 20 1930.]
FINANCIAL CHRONICLE
3927
of England has again lost gold to France and it at 5-32 of 1% discount on Thursday, and on Friday
would appear that the greater part of the open at 5-32 of 1% discount. So far on the present move-.
market gold to the end of the year has been engaged ment $18,000,000 gold has been received in New
for forward delivery on French account. However, York from Canada. Inasmuch as exports to Canada
a further gold movement from London to Berlin this year amounted to $36,500,000, Canada thus
seems less likely, although some London bankers far has an import balance of $18,500,000. Bankers
have pointed out that the gold flow to Germany expect, however, that there will be further gold shipmay reach larger proportions. Money rates in ments from Canada to New York. They expect that
London are showing a slight tendency to firmness Canadian exchange will continue at low levels for
due almost altogether to the gold exports and to some time, probably until the opening of navigation
year-end settlements, but on the whole, English on the St. Lawrence. The grain movement is greatly
banking interests feel in a congratulatory mood as curtailed at this season and the grain situation is
the Bank of England's gold holdings are much otherwise unsatisfactory, thus depriving Canadian
larger than they were at this time last year and it exchange of its most important element of strength.
Referring to. day-to-day rates, sterling exchange
is felt that the most severe strain has passed and
that with the turn of the year exchange should nor- on Saturday last was inclined to ease. Bankers'
mally move in favor of London.
sight was 4.85/@4.853/
2; cable transfers 4.85%
This week the Bank of England shows a loss in @4.85 21-32. On Monday sterling was steady.
gold holdings of £1,132,549, the total standing at Bankers' sight was 4.85/(4)4.853/
2; cable transfers
£151,316,227 as of Dec. 18, which compares with 4.85 19-32@4.85%. On Tuesday sterling continued
£140,734,339 a year ago and with the minimum steady. The range was 4.85 11-32@4.853/ for
recommended by the Cunliffe committee of £150,- bankers' sight and 4.85 9-16@4.85% for cable
000,000. On Saturday the Bank sold £260,509 in transfers. On Wednesday exchange was slightly
gold bars and exported £7,000 in sovereigns. On more active. The range was 4.85%@4.85 9-16 for
Monday the Bank of England received £200,000 bankers' sight and 4.85%@4.85 11-16 for cable
in sovereigns from abroad and sold £319,962 in transfers. On Thursday the market was firmer.
gold bars. On Tuesday the Bank sold £365,465 The range was 4.85 15-32(4)4.85 9-16 for bankers'
in gold bars and exported £7,000 in sovereigns and sight and 4.85 23-32@4.85% for cable transfers.
set aside £20,834 in sovereigns. In the open market On Friday the market was slightly easier; the range
on Tuesday only 15 gold bars were available and was 4.85 7-16@4.85 9-16 for bankers' sight and
were purchased by the trade at 85s. 13/
2d. The re- 4.85 9-16@4.85 11-16 for cable transfers. Closing
mainder of the shipment from South Africa of around quotations on Friday were 4.853/i for demand and
£600,000 was bought for forward delivery for French 4.85 11-16 for cable transfers. Commercial sight
account. On Wednesday the Bank received £920,241 bills finished at 4.85 7-16; sixty-day bills at 4.83 3-16;
in sovereigns from abroad, sold £354,945 in gold ninety-day bills at 4.823i; documents for payment
bars, and exported £9,000 in sovereigns. On Thurs- (60 days) at 4.83 3-16, and seven-day grain bills at
day the Bank bought £76 in foreign gold coin, sold 4.85. Cotton and grain for payment closed at
£347,920 in gold bars, and exported £9,000 in 4.85 7-16.
sovereigns. On Friday the Bank sold £524,461 in
gold bars and exported £14,000 in sovereigns.
Exchange on the Continental countries is dull,
At the Port of New York the gold movement for but on the whole steady, although slightly off from
the week ended Dec. 17, as reported by the Federal last week. Most transactions affecting the ContiReserve Bank of New York, consisted of imports nental currencies are taking place on the other side.
of $6,068,000, of which $5,000,000 came from Can- The slight recessions noted this week with respect
ada, $973,000 from Colombia, and $95,000 chiefly to the dollar are nothing more than reaction from
from other Latin American countries. There were the more active market last week. As noted above,
no gold exports and no change in gold earmarked France continues to take the greater part of the
for foreign account. In tabular form the gold move- open market gold from London as well as large
ment at the Port of New York, as reported by the amounts from the vaults of the Bank of England.
Federal Reserve Bank of New York, was as follows: This week the Bank of France shows an increase in
holdings of 548,479,000 francs, the total standGOLD MOVEMENT AT NEW YORK,DEC.11-DEC.17,INCLUSIVE. gold
the record high level of 52,900,000,000 francs
Imports.
at
ing
Exports.
$5,000,000 from Canada.
13, which compares with 41,248,000,000 on
Dec.
on
None
973,000 from Colombia.
95,000 chiefly from other Latin1929
and with 28,935,000,000 francs 'eported
Dec.
14
American countries.
in the first statement of the Bank of France follow$6,058,000 total.
ing stabilization of the franc in June 1928. The
Net Change in Gold Earmarked for Foreign Account.
Bank's ratio of reserves is also at record high, standNone
ing at 53.77% on Dec. 12, compared with 53.28%
• The Federal Reserve Bank's weekly statement is on Dec. 5, with 47.52% on Dec. 13 1929, and with
as of the close of business at 3 o'clock on Wednesday. legal requirement of 35%. The increasingly rapid
On Thursday the Federal Res2rve Bank reported accumulation of gold in the Bank of France and
that an additional $3,000,000 gold had been received the absence of any check to the gold import movefrom Canada, but that there had been an increase of ment, which has long since reached a magnitude
$2,000,000 in gold earmarked for foreign account, not expected by French bankers, have caused rewhile on Friday the Bank reported $7,000,000 more newed inquiry as to the reason why the French
gold received from Canada. Canadian funds con- market should appear continuously as a creditor to
tinue weak. Montreal funds (at noon) were quoted other markets. The one obvious reason lies in the
at 5-32 of 1% discount on Saturday, at 11-64 of 1% very large foreign balances which have existed on
discount on Monday, at 3-16 of 1% discount on foreign markets in favor of Paris ever since the
Tuesday, at 11-64 of 1% discount on Wednesday, stabilization of the franc.
•
3928
FINANCIAL CHRONICLE
[VoL. 131.
Exchange on the countries neutral during the war
During the past year French banks have certainly
been withdrawing by degrees balances which they is dull and affected largely by European events.
had left invested abroad. Prior to this movement Swiss francs are firmer than most of the Continental
this foreign investment of their funds was due to a currencies, largely, it is believed, owing to transwish to take advantage of the relatively higher in- actions in connection with the Bank for International
The Scandinavian currencies are
terest rates obtainable on foreign markets. Now Settlements.
easier than a week ago, in
howthough
steady,
slightly
York,
that money rates in London and New
ruling rates for sterling.
the
Paris,
lower
sympathy
with
at
than
higher
appreciably
ever, are no longer
are
largely the result, it is
easier,
Holland
attractive.
guilders
be
has
to
ceased
abroad
investment
such
More recently the French banks have apparently believed, of the transfer of Dutch funds to London
desired to increase their own cash holdings with a and New York security markets. For the first ten
view to guarding against possible withdrawals by months of this year the monthly average of Holland
depositors. Such withdrawals have already been imports amounted to 207,247,000 guilders, comconsiderable, first because depositors have had to pared with 230,013,000 guilders in the same period a
meet heavy losses of their own, second because year ago; while exports averaged 147,558,000 guildeveryone's profits have grown smaller, and third ers, against 167,996,000 guilders. Import balance
because of an uneasy feeling current in the public from January through October averaged 59,689,000
mind due to fears concerning domestic and foreign guilders per month, compared with 62,017,000 guildpolicies. French bankers of long experience say, ers last year. Spanish pesetas have fluctuated
moreover, that the point of importance in the matter widely during the week as a result of political disis the fact that before the war France was accustomed turbances which have shaken the confidence of the
to absorb on the average at least 3,000,000,000 gold market in Spain's plans for the stabilization of the
francs' worth of foreign securities, an amount equiv- peseta, although it is reported that Spain has shipped
alent to approximately 15,000,000,000 francs at the an additional £1,000,000 gold to London in support
present valuation of the franc. Since the present of peseta exchange. Peseta cable transfers opened on
feeling of French investors, even apart from the ques- Saturday last at 10.14, went as high as 10.80 on
tion of the securities tax, is averse to the purchase of Wednesday, and closed at 10.66 on Friday. Govforeign securities, it is not difficult to see why the ernor Bas of the Bank of Spain is reported to be firm
surplus on account of foreign payments should be in his determination to carry out the program of
stabilization, but there has been so much opposition,
running so heavily toward Paris.
last
from
especially to the policy of shipping gold to London,
German marks, while off fractionally
coming from certain bankers and the press, that it is
developA
favorable
week, are nevertheless firm.
to tell what attitude a new regime may
impossible
adjournment
the
was
situation
ment in the German
have.
again
it
makes
This
Feb.
3.
until
Reichstag
the
of
Bankers' sight on Amsterdam finished on Friday
possible for Chancellor Bruening to continue his
difficult task of financial reformation unhindered by at 40.253(, against 40.27% on Friday of last week;
4,against 40.2831, and comcostly debates and delays by extremist members of cable transfers at 40.263
the Reichstag. The present firmness of the mark mercial sight bills at 40.22, against 40.24. Swiss
is partly due to investment of short-term funds in francs closed at 19.413 for bankers' sight bills and
4 for cable transfers, against 19.393' and
Berlin by New York banks. Both New York and at 19.421
Copenhagen checks finished 26.733, and
19.403j.
withFrench
London have been filling the gap left by
2 and
4, against 26.743/
at 26.743
cable
transfers
The
movement
drawal from the German market.
2. Checks on Sweden closed at 26.833' and
of funds from London has resulted in gold shipments 26.753/
2, against 26.83 and 26.84,
which are reflected in this week's statement of the cable transfers at 26.843/
Reichsbank, showing gold reserves of 2,215,700,000 while checks on Norway finished at 26.74 and cable
Spanish
Rm., compared with 2,190,000,000 Rm. a week ago. transfers at 26.75, against 26.74 and 26.75.
and
bills
sight
bankers'
for
10.65
Present holdings compare with 2,247,100,000 Rm. pesetas finished at
10.39
with
compared
transfers,
cable
at 10.66 for
a year ago.
The London check rate on Paris closed at 123.60 and 10.40.
on Friday of this week, compared with 123.60 on
Exchange on the South American countries conFriday of last week. In New York sight bills on
the French centre finished at 3.92 13-16, against tinues dull and inactive, with an undertone of weakArgentine
3.92 13-16 on Friday of last week; cable transfers at ness. Since the first of the month the
closing
week's
This
cents.
3.92 15-16, against 3.92 15-16, and commercial sight peso has lost nearly 13
com333.4,
Aires,
Buenos
on
transfers
s. Antwerp belgas rate on cable
/
bills at 3.92 9-16, against 3.925
was
As
expected,
42.45.
of
parity
finished at 13.96M for checks and at 13.973/b for pares with dollar
s
cable transfers, against 13.96M and 13.973/2. Final the Argentine government made arrangement with
the
£5,000,000
repay
to
London
of
Brothers
Baring
quotations for Berlin marks were 23.833 for bank31 by securing
ers' sight bills and 23.84k for cable transfers, in 12-months credit which matures Dec.
now been arhave
credits
Two
advances.
fresh
and
lire
comparison with 23.843j
23.8534,. Italian
which
of
one
runs for six
0,500,000,
for
both
ranged,
A
5.235
at
sight
bills
for
and
bankers'
closed at 5.233/
for
Repaytwelve
months.
other
the
and
months
5.23/.
5.233
4
against
and
transfers,
for cable
the
this
possible
manner
in
makes
loan
the
ment
of
14.07;
at
against
closed
14.08,
schillings
Austrian
of
disposal
in
at
London
the
exchange on Czechsolovakia at 2.96 9-16, against placing of £5,000,000
support
to
Nacion
be
the
used
for
la
de
2.963/2; on Bucharest at 0.593., against 0.593'; on the Banco
by
Poland at 11.20, against 11.20, and on Finland at of peso exdhange. According to a cable received
Buenos
from
Bank
&
Co.
Hanover
Trust
the
Central
2.513
4, against 2.51. Greek exchange closed at
week, a new measure designed to lend
1.293 for bankers' sight bills and at 1.299I for Aires last
Argentine peso pending the reopening
the
to
support
cable transfers, against 1.29M, and 1.29%.
of the Caja de Conversion will soon be made effec-
•
1
DEC. 20 1930.]
FINANCIAL CHRONICLE
tive by government decree. The measure involves
the transfer of gold from the Caja de Conversion to
the vaults of the Banco de la Nacion to replace
metal which the bank holds abroad as its conversion fund. Support for peso exchange will be obtained through the sale of exchange against gold,
which the bank now holds abroad. Argentine paper
peso closed at 33 3-16 for checks, as against 33 15-16
on Friday of last week, and at 333 for cable transfers, against 34. Brazilian milreis are nominally
quoted at 9.80 for bankers' sight bills and 9.85 for
cable transfers, against 9.70 and 9.75. Chilean
exchange closed 12 1-16 for checks and at 123/i for
cable transfers, against 12M and 12 3-16. Peru at
29.50, against 29.50.
3929
As the Sub-Treasury was taken over by the Federal Reserve Bank on Dec.6 1920, it is also no longer
possible to show the effect of Government operations
in the Clearing House institutions. The Federal
Reserve Bank of New York was creditor at the Clearing House each day as follows:
DAILY CREDIT BALANCES OF NEW YORK FEDERAL RESERVE BANE
AT CLEARING HOUSE.
Saturday. Monday.
Dec. 13. Dec. 15.
Tuesday, Wednesday Tr ursdatt.
Dec._16. Dec. 17. Dec. 18.
Friday,
Dec. 19.
Aggregate
for Week.
$
$
S
I
$
$
$
$
128,00,000 115,000.000 190,000.000 149.000.0001 115,0,0.000 00.000.000
Cr. 712.000.00
Note.-The foregoing heavy credits reflect the huge mass of checks which come
to the New York Reserve Bank from all parts of the country in the operation of
the Federal Reserve System's par collection scheme. These large credit balances.
however, reflect only a part of the Reserve Bank's operations with the Clearing
House institutions, as only the items payable in New York City are represented
in the daily balances. The large volume of checks on institutions located outside
of New York are not accounted for in arriving at these balances, as such checks
do not pass through the Clearing House but are deposited with the Federal Reserve
Bank for collection for the account of the local Clearing House banks.
Exchange on the Far Eastern countries is dull and
The following table indicates the amount of bulirregular. Japanese yen are steady, but the Chinese
currencies are again off sharply, owing to another lion in the principal European banks:
Dec. 18 1930.
slump in the price of silver, which has brought the
Dec. 19 1929.
Banks of
Gold.
&leer. I Total.
Gold.
Stloa.
Total.
white metal to record low levels. On Thursday bar
£
£
I
£
silver in New York was quoted 313ic. per ounce. England _.151,316,227
I
4
,151,316,227140,734,39
140,734,399
(d)
a__ 423,203,6801
'423,203,680329,987.468
29,987,468
Shanghai taels declined to 35.00 and Hong Kong to France
Germany' 99,694,950 c994,600 100,689.550104,867,"
105,861,950
994
98,453,000 28,103,000126,556,000102,593,000 28,287
Spain
130.880,000
27.12. Yen held steady at 49.69, although yen Italy
57,243,000
57,243,000 56,108.000
56,108.000
35,517,7
01 2,060,000 37,577,000 37.292,000
37,292,000
futures were quoted at a wide discount. Present Netheri'ds,
37,060,000 31,462,
Nat. Bele. 37,060,
1.286,000 32,748.000
25,820,000 22,449,
Switzerl'cl. 25,620,000
23,557,000
1,108,
prices on Hong Kong dollars compare with 28.38 on Sweden_ __ 13,410,000
13,410,000 13,359,
13,359,000
Denmark. 9,560,000
9,560,000 9,581,
36
9,942,000
Monday, while Shanghai taels compare with 36.25. Norway__
8,135,000
8,135,000 8,151,
8,151,000
Closing quotations for yen checks yesterday were Tot. wk.959,212,857 31,157,600,990,370,457856,494,217 32,036,600888,530.817
Prey. week 958,156.069 3I,304,800989.460,600 851,627,93 32,198,600883.826.5n
49.63@,49%, against 49.60@497
4. Hong Kong closed a These are the gold holdings of the Bank of France as reported
In the new form
statement. b Gold holdings of the Bank of Germany are exclusive of gold held
at 273., against 27%@28X; Shanghai at 351A, of
abroad, the amount of which the present year Is £4,789,000. c As of Oct. 7 1924.
against 35%@35 11-16; Manila at 49 3, against d Silver is now reported at only a trifling sum.
497/s; Singapore at 56.25@)56 7-16, against 56Y
4@,
56 7-16; Bombay at 36W1, against 363I, and Cal- The Validity of the Eighteenth Amendmentcutta at 363, against 363s1.
Judge Clark's Decision.
The decision which Judge William Clark, of the
Pursuant to the requirements of Section 522 of the United States District Court for the District of
Tariff Act of 1922, the Federal Reserve Bank is now New Jersey, handed down on Tuesday in the case
certifying daily to the Secretary of the Treasury the of the United States vs. William H. Sprague and
buying rate for cable transfers in the different coun- William J. Howey will doubtless long be referred
tries of the world. We give below a record for the to as a landmark in the history of Federal prohibiweek just past:
tion. The defendant Sprague was arrested last
FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE
March for attempting to transport a truck load of
BANKS TO TREASURY UNDER TARIFF ACT OF 1922,
DEC. 13 1930 TO DEC. 19 1930. INCLUSIVE.
beer to Howey. The case attracted the attention of a
group of prominent attorneys of New York City who
Noon Buying Bate for Cable Transfers in Nem York;
Value in United States Money.
Country and Monetary
had for some time been studying how best to test in
Unit.
Dec. 13. Dec. 16. Dec. 16. Dec. 17. Dec. 18. Dec. 19.
the courts the validity of the Eighteenth AmendEUROPE$
$
ment, and was taken up because it was free from
.140837 .140846 .140845 .140854 .140857: .140909
Austria,'chilling
.139668 .139640 .139638 .139667 .139686 .139683
Belgium, beige
incidents which would obstruct a clear-cut consid.007183 .007172 .007175 .007172 .007166g .007169
Bulgaria, lev
Czechoslovakia. krone .029664 .029663 .029665 .029669 .029673' .029674
.267460 .267443 .267425 .267438 .26741 .267427
eration of the question of constitutionality. Judgel
. Denmark, krone
England. pound
4.856203 4.855681 4.855866 4.858548 4.856988 4.856576
sterling
Clark's decision, which fills some twelve and oneFinland, markka
025166 .025165 .025163 .025163 .025165' .025164
France. franc
039288 .039286 .039285 .039289 .039293 .039293
columns of the New York "Times," discusses
half
Germany, reichamark .238462 .238345 .238326 .238446 .238519 .238434
Greece, drachma
012941 .012943 .012946 .012946 .012948 .012947
great
length the contentions of counsel and the
at
402779 .402775 .402715 .402641 .402689 .402671
Holland, guilder
Hungary, pengo
174920 .174914 .174910 .174950 .174897 .174967
Government,
and quotes voluminously from court
052379 .052377 .052365 .052362 .052364 .052358
Italy. lira
Norway, krone
267430 .267403 .267408 .267414 .207452 .267436
decisions and the writings of authorities or near
Poland. zloty
.112165 .112134 .112129 .112122 .112172 .112120
Portugal, escudo.
.044858 .044810 .044808 .044808 .044812: .044808
authorities in constitutional law, political science
Rumania,leu
.005949 .005945 .005945 .005945 .005943 .005945
Spain. Peseta
.101888 .100988 .103661 .107396 .107038, .106147
and history.
Sweden, krona
.268325 .268314 .268361 .263383 .268406 .268355
Switzerland, franc... .193994 .193984 .193975 .194041 .194086
.194150
In the argument, counsel for the defense laid
Yugoslav
dinar . .017692 .017694 .017693 .017698 .017699 .017700
ASIAChinamuch stress upon the contention that Article V of
Chefoo tael
368750 .371041 .364166 .362708 .359375
Iftankow tool
.365468 .367187 .360156 .358906 .355781 .361250
the Constitution, prescribing the methods to be
Shanghai Wel
. .336160 .359000 .350089 .349732 .346339 .357500
Tientsin tool
.374791 .376666 .369791 .368125 .365208 .348928
used
in amending the Constitution, should be interHong Kong dollar.. .277142 .280732 .271071 .271607 .269285 .366666
Mexican dollar..
256562 .258437 .252500 .251562 .250312 .270089
preted
in the light of the Tenth Amendment, which
.251875
Tientsin or Peiyang
dollar
259583 .260833 .256250 .253750
00 .254166
that "all powers not delegated to the United
provides
Yuan dollar
.257916 .253333 .250833 .249583
.2560
359112 .359228 .359314 .359371 .359357 .251260
India, rupee
States by the Constitution, nor prohibited by it to
496168 .496143 .496068 .496175 .496243 .359457
AIM), yen
Singapore (8.8.) dollar .559291 .559291 .559225 .559291 .559375 .496296
.559375
the States, are reserved to the States respectively,
NORTH AMER.998588 .998460 .998262 .998180 .998354
Canada. dollar
or to the people." It was urged that the power to
.999162 .999162 .999175 .999218 .9992681 .998318
Cuba, peso
.442833 .445000 .442833 .444466 .449300 .15993250006
Mexico, peso
was one of the reserved powers, and since
amend
Newfoundland, dollar .906043 .995937 .995906 .995750 .9959371
.996003
SOUTH AMER.would be a nullity if the discretion
reservation
the
.764498
.760183
Argentina. Peso (gold)
.744267 .749039 .756368'
mllreis
.095968 .096031 .5906
09
.096375 .096796
unlimited in the exercise of the
120799 .120828 .120822 .121090 .121093; .
Chile. IMO
Congress
were
of
15°
20
7064
78
32
52
Uruguay, peso
.750081 .743504 .727065 .726616 .737686! :097
93
657
43
00
9
Colombia, peso
965700 .965700 .965700 .965700 .965700 ;7
proposing power, the limitation upon its discretion
which should be recognized was to be found by
3930
FINANCIAL CHRONICLE
[VoL, 131.
: The
tracing to its source in the people the power granted might be based on the following reasoning
unnot,
could
and
not
does
nt
Amendme
h
Eighteent
that
argued
by the Amendment. It was accordingly
produe
"change granting governmental powers over the less it expressly so declared, abrogate the
action
Any
t.
Amendmen
Fifth
the
of
clause
cess
people."
the
of
ns
conventio
people must be ratified by
is
what
of
light
the
Judge Clark found himself unable to accept this thereunder must be regarded in
of
school
advanced
reasoning, the joint construction of Article V and reasonable. . . . The more
the Tenth Amendment appearing to him "too constitutional thinkers consider this 'reasonableness' from the point of view of the efficacy of the
strained to be permissible."
remedy
prescribed for any particular evil." The
It was by other reasoning that the Court brought
Court,for example, has found that vaccinaSupreme
into
nt
Amendme
the validity of the Eighteenth
sterilization are "efficacious in preventand
tion
do
to
tried
question. After stating that he had
of smallpox and idiocy," and those
spread
the
ing
Fedthe
of
the
nature
of
justice, in a long discussion
eral union, to "what we have called the stereotyped remedies have been sustained against attack under
h
method of constitutional interpretation," and con- the due process provision of the Fourteent Amend,
suggested
Clark
Judge
think,"
we
"Equally,
fessing that "in spite of our conscientious efforts, ment.
its
nt
and
h
Amendme
Eighteent
the
of
efficacy
"the
unwe cannot help a feeling of impatience at its
of inreality," Judge Clark went on to say that "we pre- enforcing legislation in preventing the spread
upon
deciding
in
criterion
be
the
should
e
temperanc
problem
a
fer to regard our frame of government as
the
Fifth
of
in political science, to be solved as far as may be its validity under the due process clause
States." The
according to scientific principles. The qualification Amendment applicable to the United
"is a
he
test,
admitted,
this
applying
'as far as may be' must be included because a writ- difficulty of
Herof
which
with
the
n
activities
compariso
in
ten document imposes certain limitations upon any task
but
play,"
are
child's
stables
the
Augean
in
cules
approach,scientific or otherwise. Political science,"
the
questhat
hope
the
expressed
ss
he
neverthele
he accordingly declared, "can give only one answer
day."
to the question presented by the alternative methods tion "will be presented in some court some
ramand
somewhat
long
this
of
n
conclusio
The
the
If
V.
of ratification prescribed by Article
h
nt
Eighteent
Amendme
the
that
was
argument
bling
transto
designed
amendment to be considered is one
t
indictmen
the
quash
to
fer to the United States powers heretofore reserved was invalid, and the motion
granted.
according
was
s
to the States, or, if there be any such, to the people, against the defendant
As steps have been taken by the government to
that answer must be in favor of the convention
Court,
method. This follows from the character of such appeal the decision directly to the Supreme
to be
reported
are
s
authoritie
n
as
and
prohibitio
amendments and from the character of the delegates
the
interim,
the
in
decision
to
the
d
defer
to
n,
indispose
conventio
to and deliberations in a constitutional
underemain
must
decision
of
the
standing
final
of
character
ding
the
correspon
as compared with
the personnel of State legislatures and their delib- termined until the Supreme Court has had an operations. . . . A convention, either because of portunity to pass upon it. It seems to us highly
be
directly instructed or abler delegates, is . . . a improbable, however, that Judge Clark will
ion
provides
Constitut
the
of
better vehicle for the expression of public opinion sustained. Article V
than a State legislature. . . . We are quite that amendments, whether proposed by Congress
willing to stand flatfootedly on our thesis that the or by a convention which may be called for the
valid to all
scientific approach to this problem of government purpose of proposing them, "shall be
ion,
Constitut
this
of
part
as
purposes,
and
intents
certain
of
on
and
ratificati
requires an approval
of
three-fourths
amendments by and in a convention, and that the when ratified by the legislatures
in threelanguage of Article V can be taken as modified by of the several States, or by conventions
mode of
other
the
or
one
the
fourths thereof, as
the principles of political science before stated."
"
Congress.
the
by
proposed
be
Another line of approach followed by Judge Clark ratification may
the
that
show
to
clearly
seems
started with the ruling of the Supreme Court that The language
of ratification
Congress,in formulating and proposing amendments choice between the two methods
and the
Congress,
of
discretion
the
to
is
left
wholly
to the Constitution, was not performing a legislafrom
deduce
to
Article, or
tive function. It follows, then, Judge Clark pointed attempt to read into the
various
the
or
ion
Constitut
out, that "the nature of its function is administra- any other part of the
discrimination in favor of a contive. That being so, it falls within the ordinary Amendments, a
kind of amendment is conspecial
principles which govern the judicial review of ad- vention when a
lack sufficient warrant.
to
us
to
ministrative action." As "the purpose of the cerned appears
of political science, also,
principles
the
to
amending clause . . . would be violated by the The appeal
ing the Constitution, is
interpret
for
criterion
a
as
submission of amendments transferring powers from
reserve. Doubtless
much
with
received
be
to
one
the States to the United States, . . . such subwhich execuscience
political
of
principles
are
there
disof
mission would therefore constitute an abuse
in the
useful
find
may
courts
s and
cretion OR the part of Congress in its capacity as an tives, legislator
d
questione
be
may
it
but
work of government,
administrative agent."
clearly
so
principles
such
many
are
Although Judge Clark recognized that the validity whether there
accepted as to make their•defigenerally
or
defined
question
only
the
was
nt
of the Eighteenth Amendme
in
on
constitutional matters anyapplicati
before the court, he nevertheless went at some length nitive
or
even hazardous.
uncertain
but
into a consideration of the possible effect of his de- thing
on the other hand, is far
decision,
Clark's
Judge
cision upon other amendments. None of them exnegligible, and will remain so even if it should
cept the Fifth seemed to him likely to be affected from
be affirmed by the Supreme Court. It has
practically. He had wondered, however, he said, fail to
added new vigor to the growing
"why the Eighteenth Amendment has not been tested unquestionably
n, and has given the agitain relation to the 'due process' clause of the Fifth revolt against prohibitio
Nearly eleven years of
point.
rallying
Amendment. We should think that such a test tion a new
41
1
ilh
DEC. 20 1930.]
0
FINANCIAL CHRONICLE
so-called enforcement, pushed through with lavish
expenditure of public money, have carried widespread the conviction that the adoption of the Eighteenth Amendment was a mistake and that the
Amendment ought to be repealed. To the question
of how repeal can be accomplished Judge Clark's
decision has turned the national attention. It is
possible, also, that the arguments which the decision
adduces may have the effect of inducing the Supreme
Court to reconsider some of its own positions, and
to view prohibition as a matter of national policy as
well as one of Constitution and law. There can be
no question, further, that Congress, by adhering to
the one method of ratification by State legislatures
and refusing to submit any amendment to State
conventions, has made possible the adoption of
amendments which would not have been accepted
if conventions had been allowed to pass judgment
upon them. The enforced acceptance of the Fourteenth and Fifteenth Amendments by reconstructed
legislatures in the South after the Civil War, without whose support the amendments would probably
have failed, is one of the dark spots in our political
history, and it may well be doubted if the Eighteenth Amendment would have been ratified if the
people had been given a chance to express their wish
concerning it. Judge Clark's decision should open
the eyes of Congress to the grave disadvantage of
clinging to an indirect method of ratification when
the Constitution offers the alternative of a mode
more in harmony with popular representative government. The maxim that nothing is to be regarded as settled until it is settled aright has peculiar application to the prohibition situation, and
while we cannot thing that Judge Clark's decision
will set the Eighteenth Amendment aside, it may
well turn out to have helped indirectly in accomplishing that result.
Leave the Markets Alone.
If there is one moral to be drawn from the annual
report submitted recently by the Federal Farm
Board it is this: that it is best to leave the markets
alone, and let them operate strictly according to the
law of supply and demand. All attempts to control prices artificially are foredoomed to failure, and
this fact is plainly admitted in so many words in
the Farm Board Report covering its activities for
the past year. The Farm Board officials practically
admit that the task assigned to them is an impossible one, insofar as stabilizing the markets is concerned. Temporary success may be achieved in
checking declines in commodity prices, but the stabilization operations are attended by a train of evils
that sooner or later render the market situation
worse than it was before.
Not content with creating the Federal Farm
Board, the present Congress, according to advices
coming out of Washington, is now considering the
question of tampering with the markets in another
way. There is talk of legislative steps being taken
to abolish short selling, at least during the present
period of depression. A measure of this sort was
put into effect during the crisis in the cotton trade
that immediately followed the signing of the armistice in 1918. As soon as the armistice was signed,
foreign countries started dumping commodities and
hedging cotton in the American markets. This led
to considerable weakness in the cotton market,
whereupon the Government Committee on Cotton
3931
Distribution, a Wartime committee composed of
prominent cotton men, issued an edict prohibiting
speculative short selling on the New York and the
New Orleans Cotton Exchanges. The effect of this
order, which became operative on Nov. 13 1918, was
to create a narrow, extremely erratic market, which
fluctuated violently at times. The Government restriction on short selling was rescinded on Dec. 9th,
after which much more stabilized conditions prevailed in the cotton market.
As we have previously pointed out in these columns, short selling is a safety valve to the cotton
market, and when prices are showing a downward
trend, the short interest in the market acts as a
cushion to the decline, and prevents panicky conditions. According to Mr. Safford, general sales
manager of the American Cotton Co-operative Association in New Orleans, the recent sharp decline
in cotton prices was due to liquidation of holdings
by spot owners in the interior. Spot cotton, he
says, in a recent statement, has been offering on
a tender basis. This means that holders of spot
cotton in the interior of the Cotton Belt have been
offering round lots at a price level that would enable the larger spot houses in the trade to buy this
cotton and deliver it on the New York or New Orleans futures contract at a profit. Thousands of
bales of cotton throughout the Belt have been absorbed in this way, and the two American contract
markets have afforded an outlet for these holdings
turned loose on a declining market.
It is safe to say that unless there had been a short
interest, which could take care of all this hedge
selling, panicky conditions would have prevailed
recently in the cotton market. As it was, the market
declined in an orderly way and without any assistance in the shape of stabilization buying from the
Federal Farm Board, such as has been resorted to
in the wheat market during the past several weeks.
In other words, it is quite evident that a contract
market which is permitted to function normally
and without any artificial restrictions is always
prepared to meet the emergencies of any situation
that may develop. Every short seller of wheat or
cotton is a potential buyer, and there is an old saying in the markets that there is no bull like a scared
short. Technical rallies such as take place in all
bear markets from time to time afford the opportunities •that spot houses need to put out hedge
sales to good advantage. Even the Co-operative
associations have admitted the economic values of
hedging facilities in the cotton and grain markets.
Such facilities could be impossible if short selling
in the markets was done away with. We trust,
therefore, that the administration in Washington
will frown upon any further meddling with the
markets, already disorganized as a result of the
stabilization operations carried on during the past
year by the Farm Board. The less Congress and
the Farm Board have to do with the markets, the
better it will be for business generally in this
country.
Carriers by Sea and by Land.
Laying the keel on the banks of the Delaware
River last month for a 30,000-ton passenger ship
which will be the nucleus of a modern new fleet
to be owned and operated by the United States Lines,
was an act of great significance for this country.
While World Powers agree upon limitation of na-
FINANCIAL CHRONICLE
3932
val construction, no such check has been put upon
the building of ships for carrying cargoes or passengers.
But merchant ships in time of war are as essential for national defense as are battleships, carriers
and submarines of the navy, since the nation's interests are no longer confined to continental United
States. During the World War vessels were utilized
by the government to transport American troops to
Europe in great numbers. Feed, munitions, hospital and all manner of essential supplies, including
construction materials, had to be transported quickly
and safely to sustain our own combatants and make
their efforts successful.
Shipbuilding in recent years has fallen to a low
stage in the United States, a condition from which
it is slowly recovering. Marine construction lapsed
into such a low state that some of the oldest 'shipyards of the country abandoned the business. Existing shipyards should not be permitted to go into
decay, especially as the government has a double
purpose in keeping them effective.
A marked difference is noted in the attitude of
Congress toward the land carriers as contrasted to
the fostering care bestowed upon the carriers by
sea. When required to serve the purposes of the
nation in time of war, all the railroads were conscripted and operated by the Government,a hardship
accepted without a murmur by owners or railway
officials. Similar necessity may at any time call
for like action in behalf of the nation. It would
seem, therefore, that it should be a matter of serious concern to those who look after the Government's affairs, to encourage railroad developments
which will increase and strengthen usefulness of
the land carriers in time of national need.
For one hundred years private enterprise and
private capital have been engaged in constructing,
equipping, developing and enlarging both the capacity and the length of the railroads of the -United
States until they have reached a scope and state of
efficiency existing nowhere else in the whole world.
While many millions of dollars of public funds
are appropriated for maritime developments, appropriations respecting the railroads are chiefly to
regulate and repress private enterprise. In addition
interior water lines are aided with public funds to
compete with the rail carriers. If it is practical and
possible to arrive at some middle course which will
enable railroad management and Federal authorities to come to some helpful understanding which
will encourage rather than bar progress on the part
of the great land carriers, no time should be wasted
in removing all obstacles to such a beneficial result.
Congress is the source of all costly impediments
and barriers placed upon the right of way and
through which the railroads must tunnel or build
around in order to function and meet the public's
demands.
Has not the time arrived for Congress to clear
the tracks and swing a green light indicating "Go
ahead under full steam?"
Christmas.
When love commands, thought turns to those who
are near and dear, that they may have more abundant life. The abstract motive that energizes toil
and trade becomes concrete. We wish to give joy
to persons, independent of precept and duty.
Family urges to effort in commerce and industry.
(vol.. 131.
Friends spur us on to higher attainments and not
seldom self demands that we succeed. But when
we think only of the good and happiness of others,
love is the promoter of our deeds, and the individual is the recipient of our largess. If there were
no other reason, this would be full justification
for the celebration of Christmas. Social and economic benefits of this day are not often considered. Yet they are vast and far-reaching.
Spontaneous giving as an evidence of goodwill
bids us only follow our well-wishing. We stop not
to analyze. We follow the promptings of the heart.
We give to those we love. In the doing of this arise
the unconscious benefits to ourselves and to those
we would make happy, if but for a day. We turn
away from business with its cares, complexities,
tendencies and toil. Our peculiar ambitions we put
aside. Our search for knowledge we hold in abeyance. The world with all its emprise may wag as
it will. We proffer gifts not for their intrinsic
value, but that they may express the thoughts of
the heart.
On this day of sacred memories and solemn devotions, albeit joy burgeons into sublime significance
in human life, the mere forgetting of the wide and
wild tumult of endeavor is a boon to humanity.
Not self but others engage our aim and purpose.
The bestowal of gifts, however trivial they may be,
swells into a universal anthem of "Peace on earth;
goodwill to men." It was the wise men who brought
gifts to the Child as it lay in the manger. Angels,
who choired hosannahs in the skies, were but bestowing blessings on the lowly. The Star that led
across barren wastes until it rested above the birthplace of the Saviour of men, turned from the magnificent constellations of His handiwork to seek out
the earth, that it might become the home of those
who for love labor for others. And this (Child, born
to bear a cross, came so to love the world, that those
who follow in his footsteps might have the everlasting life that lives in unselfish human kind
through the ages of endeavor and uplift. Not alone
that to give is more blessed than to receive, but that
to give is to unfold the divine that is within, that
man be more like a god, and that mankind be more
worthy of the infinite gift of life and love. In the
presence of this sanctification the material world
shrinks into a mere enfolding of the spiritual.
What, then, are shining temples of worship but
the fanes that the windblown dusk of centuries shall
cover with oblivion, while the prayers, aspirations
and songs of praise shall ascend and endure forever? What are the intricate and ever-multiplying
machines that imprison the laws of nature, but the
paltry toils of men who make and build the civilized equipments of life, that it seek and find the purpose of the Maker of all? What is business but a
means to an end, and that end contentment, happiness and peace? What is the knowledge of research,
investigation and experiment, but that out of it all
may issue the wisdom of kindness and helpfulness,
one to another? What is love itself but that from
its outward flow new love may be created? And
what the celebration of this historic day but that
the holy idea of self abrogation may smooth the
pathway all must tread to the very end? Crowns
and creeds, governments and laws, institutions and
schools, aye, the whole material fabric of what we
call civilization, may bow down to the One in whose
memory Christmas will endure forever.
41
Mac. 20 1930.]
FINANCIAL CHRONICLE
We celebrate other days in the calendar but none
like this one. There is about it no pomp or circumstance, or praise of collective deeds that stir the
annals of mankind. We mark time by commemorations of successful wars, the appearance of bold
and useful leaders, the discovery of continents and
the formation of governments, the emergence of
ideas and ideals that capture the reason and imagination—but in the celebration of Christmas, each in
his own heart, in his own mind, suffers himself to
be led by the matchless Being who from cradle to
cross gave himself to that truth he believed would
make men happier and better and more worthy.
So that it is not the size and splendor of the simple
deed of the simple man, it is not the value of the
gift, but the spirit which actuates the doer and
giver that consecrates Christmas to the good and
glory of our common humanity.
A toy to a child; a card of remembrance to a
faraway friend; a flower into the hand of shut-in
age; a "present" according to the money that may
be spared, to dear ones in homes, be they rich or
poor: an anthem ma church, a carol in the nighttime of snows and stars; a greeting to neighbors and
a sleighride over the hills with a child burdened
with affliction; a dinner for waifs and orphans; a
morning sermon of sweetness and light; a green
"tree" loaded with shining gifts; and a hung-up
stocking bulging with candy;each and all are worthy
reminders of the unselfishness of Christmas-time.
The beauty and holiness of Christmas, remembering its sacred sanction, lies in this turning away
from the ambitions, excitements and entertainments
of a seething world, for a brief time, and following
the promptings of the feeling, individual heart. In
this, there is no teaching of communism. The heart
is individual, not collective. Love is triumphant
over selfish-designing thought. He gains his life
who loses it. Far away, at this time, are the wars
that decimate and destroy! Forgotten are the
schisms and contentions of politics! Prosperity and
progress take their own way and depression chills
not the desire to make happy those who dwell in the
lower reaches of toil and trade!'
We are what we are at Christmas-time! The
chant of childhood and the serenity of age are alike
the expression of the inner urge of goodwill. Not
that we shall forego organization in providing the
customary feasts for the poor, but that we shall give
free rein to our own plans to help others. Out of
this temporary turning away from worldly endeavors and customs we must come into communion
with our real and inner selves. And as we do, our
characters change, come into line with the divine,
and bless our gifts.
Christmas comes—and lo, around the rolling
world, homes brighten, hearts grow tender, and
hands are busy! The sun returns, trailing the glory
of new harvests; a Son is born; that "whosoever
believeth . . . shall not perish, but have everlasting lifer Sing they praises who love Him and
walk in His ways! Yule fires glow, candles flame,
and the holly glistens. By carol, chant and anthem,
in church and hall, ascend the words of adoration
that echo in the night skies that nineteen hundred
years ago were filled with the music of angels singing "Peace on earth, to men of goodwill." What
now are the material advancements of a progressive
age? What are the discoveries of far-distant galaxies
of stars and island universes swimming in the mys-
3933
teries of time and space? What are "prosperity"
and "depression"—while the hearts of young and
old are happy with the love of Love, that makes
life worth the living! "Merry, merry, merry," cry
the schoolboy and the sage. Rich and poor pause
to be kind. Powerful and weak join hands in the
common cause of the Master. And from what
heights we know not, from what realms we scarce
can imagine. God looks down upon his children
with approval. Christmas, in its holy meaning,
crowns the passing year. Now is the time when
hate and malice, envy and greed, may be washed
out in gladness and goodness. When repentance
and restitution may make one the sinner and the
saint; when on the altar of giving the worthy and unworthy may make the sacrifice that returns good
for evil an hundred fold. And when the Day is
done—and mankind returns to the monotonous
labors of a prosaic existence a something remains
to soothe and chasten and elevate. Blessed, twice
blessed, be Christmas!
"Great Expectations."
Not all our hopes are fulfilled; our highest expectations often fail. But as we try to wring some good
from our present adversity we should not dampen
the enthusiasm of the workers for better times, better things. Yet, on the other hand, it is wrong to
encourage a people to believe in a "prosperity" that
cannot come again. For when the "upturn" comes
it will produce a new kind of success—more stable,
more permanent, than that which collapsed a year
ago. Thousands of minds are studying conditions,
evolving plans, uncovering principles, social, commercial, economic, by which and through which poverty may be abolished,in part at least, business may
be stabilized if not equalized, and unemployment,
with all its protest and passion, may be banished
from our ranks.
Much good must come from these contemplations
and analyses. To expect a millennium to be inaugurated is foolish. When the "new day" comes we
will live in the same environment, exploit the same
resources, employ the same energies, and, more or
less, engage in the same enterprises, enjoy the same
liberty of initiative, and work with the same tools
and machines. That is to say, if we do not bind
ourselves down by more stringent laws than ever.
But we will not live in Utopia. We will not accomplish all we hope for. We will not in whole either
stabilize business or eradicate unemployment.
May we call attention to one possible effect of
making these plans for work which we cannot fulfill
—a deeper dissatisfaction among the masses? Take
the milliOns appropriated and to be appropriated
for public roads! Can a good concrete be mixed
and laid in freezing weather? Take public buildings! Have the sites been procured, and can they
be without, often, condemnation proceedings? We
note that a bill is to be introduced in the present
Congress to allow the Government to file a bond and
proceed without the customary court procedure.
But is this the way to protect property rights and
defend the castle-homes of our citizens? Take the
railroad projects promised! Can they gather capital as we gather nuts from trees; can they get the
right of way, willy-nilly, without condemnation suits
and trial by courts? Can any industry defy the
seasons, defy the credit conditions, chop itself up
3934
FINANCIAL CHRONICLE
[Vox.. 181.
The fact is that the whole country is suffering and
efforts should be made at Washington to benefit
the country as a whole. United effort with a common purpose will accomplish more of good than will
futile attempts to build up one portion of the country at the expense of the other.
The old principle that in union there is strength
still holds good. This is not merely a nation of
States; it is the United States of America. The
maxim "United we stand, divided we fall" is as
true to-day as it ever was in the nation's history.
Surely real patriotism now calls for the putting
aside of personal ambitions for one grand, prolonged and united effort to bring prosperity, and
happiness to the whole country and to all the inhabitants thereof.
Samuel Insull, of Chicago, one of this country's
greatest leaders in the utility field, in an address
at Philadelphia last week, before guests of that
city's (Chamber of Commerce, members of firms
which have conducted business in the Quaker City
for from 100 to 246 years, evidently had these
thoughts in mind, when he said:
"If an institution has courage and character, it
will look the conditions that confront it in the face
—and go ahead. Character gives us the courage to
stand steadfast when times are bad, then courage
leads character forward when times change. Courage
is progress. Character is stability, endurance, and
fidelity to principles.
"Courage and character are the heritage of the
people of the United States, coming to them from
forebears who built up institutions like those which
you honor to-day. It is through this heritage that
we have developed our resources and led the march
of progress throughout the world. It is this heritage which has sustained us in the dark days of the
past; which will carry us through the gloomy days
of the present. Bright days will come again, because courage, and character will make them come.
"But there is one thing we must take to heart:
Exploitation Should Cease.
The vast area of the United States, teeming with Qur good times will come to ourselves through ournt,
123,000,000 of intensely active inhabitants, affords selves. They will not come as a gift of governme
the
of
effort
an
as
but
e,
opportunists a chance to create sectional jealousies or a gift of Providenc
and to have one or more portions of the country people.
"Business, trade, commerce, service of the variantagonizing others. This is the situation which
of
s
ous
kinds the public requires, transportation, the
bickering
exists to-day as is manifested by the
invenSenators and Representatives assembled in the development of the resources of the country,
findthe
industry,
tion, progress in the arts and in
nation's capital.
busi.
g
conductin
of
Manufacturing had its beginning in the United ing of new and better methods
lie
things
these
ll
service—a
States along the Atlantic coast which was first ness and providing
people.
the
settled. Industry was gradually extended West- within the province of
"Men and women, animated by the same desires
ward to the Mississippi river and to the South.
railas
their forebears, will go forward to-day, without
Construction of the great transcontinental
and
of
the
interior
misgiving, if left unhampered to pursue their vocaroads opened the fertile lands
lands
from
and
stony
tions, to follow the bent of their genius and to
exhausted
migrated
farmers
in Eastern States to the West, Northwest and receive the just rewards of their intelligence and
Southwest. Grain, fruits, cattle, hogs, gold, silver, their industry. In this lies the romance and adcopper, oil and natural gas are the chief products of venture of life to-day.
"The days when Philadelphia was founded were
this newer and populous interior empire.
Adverse economic conditions, following in the brave days; so are these. Romance is not dead.
wake of the world's greatest war, have weighed Adventure is not of the past alone. As great adventhat
heavily upon all parts of the United States, creat- tures lie immediately ahead of us as those
coloDutch
and
French
the
by
s
n
which
been
have
seized
were
suspicion
undertake
ing jealousies and
explorers.
upon by some politicians in order that they might nists, or by the Spanish and French
once
promote their own private interests or political Romance has changed its livery. Where it
mankind.
ambitions. Unscrupulous political leaders are en- served kings and courts, it now serves
new paths.
deavoring to create discord by arraying one section But it still is. Adventure follows
and unseas
of the country against another, taking advantage of Where it once led across uncharted
resources,
develop
to
seeks
mapped continents, it now
current conditions.
into a menagerie of incongruous products in order
to give work to unemployed? Probably there are
at least four millions of men seeking jobs. Millions
are being voluntarily contributed to various funds
to give them work! Can they sow grass and plant
flowers in the parks when snow and ice are on the
ground? No; the seasons wait for no man, be he
philanthropist or common laborer.
The generous sympathy of the American people
in our present crisis is magnificent. The poor that
are always with us will not starve. But shall we
promise to cure unemployment in a month a year?
Shall we promise what we cannot perform? Shall
we put the Government in harness to relieve the
pressure of mass-production by ever-increasing
machinery? A manufactory is not a mushroom. It
is conceived, it grows, and is evolved, to meet the
times, to fill the needs and wants of the people as
they need and want. The time will not come when
industries can be stabilized until the people are
stable. And that will never be, while genius creates,
and desire demands. Nor can wages defy profits.
It is sad to reflect on the tendencies and trends of
a free people that will not live frugally, comfortably,
contentedly. "Making money" will always contribute to those changes that throw workers out of
employment. But to preen our feathers with impossible plans and promises is to aggravate present
conditions and to proceed to worse ones. We will
no doubt be told that this is pessimistic, that it
retards recovery, that it dampens the enthusiasm of
those who confer on ways and means. But beware
of a day when unfulfilled promises destroy confidence in men, industries and government. Let us
leave no stone unturned to aid and help. But let
us not promise by plan or precept work on any such
inflated basis as that which prevailed during the
recent financial debauch, for we cannot keep the
promise.
DEC. 20 1930.]
FINANCIAL CHRONICLE
3935
raise the standard of living, enrich life and attain a
higher level of civilization than we have known
heretofore.
"If Government will but keep hands off except
in its own proper field, if it will trust the people
to work out their own salvation, we will come out
of the doldrums—where 60 many now hang idle of
hand and brain, mulling over our present distress,
instead of bending their energies to the progress of
to-morrow. Through their heritage of courage and
character, the people will do this for themselves—
if the task is only left to themselves."
We believe that their guiding motive was, that such a museum, in
addition to its educational value, by showing the history and development of our, the oldest and the most cosmopolitan city in the Western
World, will help every citizen personally to realize the thought expressed
by Abraham Lincoln, and now engraved on the Museum's walls:
"I like to see a man proud of the place in which he lives.
I like to see a man live so that his place will be proud of him."
The Museum proposes to record and help to visualize, through various
means, New York as an Indian village; as a Dutch settlement; as a
British city; during the Revolution; the Nineteenth Century; to-day
and to-morrow. It will display for the eye to see, how the people
lived in their homes; the history of lighting and heating; their public
building's and how they traveled; the growth of the city's commerce
by water, land and air; its harbor and ships, coaches, street cars, railways and airplane development; all the factors that have contributed
to its wealth and world influence; its local business, wholesale and retail;
its industries; the history and growth of its banks and of the Stock
Exchange. All will be shown so that the eye may see, and the heart
of the New Yorker may be stirred, and the ambition of future generations may be aroused to continue growth and progress in all matters
that make for civilization, and the well-being and happiness of mankind.
New Museum of City of New York.
In addition to many objects of unique historic value, there will be
The new Museum of the City of New York, erected on the shown here how the means of communication have
developed from
site donated to the trustees by the City Government on Fifth the town-crier to the telegraph,telephone and radio; how the Municipal
Departments—Police, Fire, and Health—have grown from the needs
Avenue between 103d and 104th Streets, was opened for in- of a village to the demands of the
great metropolis, and who were the
spection this week. At the time of the raising of voluntary outstanding men and women who have contributed to its growth. There
special
exhibits
be
will
of
shipping
from
models of the Indian canoe tosubscriptions for erection of the building (an item apthe largest modern steamship; special exhibits showing the history and
peared in our issue of Nov. 16 1929 page 3116) we stated development of all games and
sports. There will be pictures and
that this is the first museum in the United States to
models showing the astonishing development of Fifth Avenue in
visualize century
a
and
half;
city's
the
architecture
from Indian tents to modern
the history and development of an American city,
and it is skyscrapers; the history of the theatre and music and popular
amusethe first museum built anywhere by voluntary
subscriptions. ments in New York from the earliest days to the present.
An announcement just issued by James
All of these accomplishments, which molded together have made our
Speyer, Chairman city what it is, will be represented,
so that those who see may readily
of the Finance Committee of the museum
and Luke Vincent understand.
Lockwood, Chairman of the Exhibition Committe
exhibits
Many of these
will be in the form of historic model groups,
e is given
prepared after many months of research and careful work by the most
below. It will be noticed that it is the desire
to enlist the competent experts. We want
to enlist the interest and co-operation
interest and co-operation of all New Yorkers, and
that gifts of all New Yorkers.
either of money or of historic objects, will be
You can help this work by a gift of one or more of these model groups,
welcome.
which cost from $2,500 to $10,000, dependent upon their size and
This beautiful building,now completed on the site given to
the Trustees I importance. Each group will carry the name of the donor.
by our municipal authorities, has been made possible
through voluntary I
You can also help by gifts of money, however small, and by gifts,
gifts from about fifteen hundred of our fellow-citizens,
in individual or loan, of such historic objects as the Exhibition Committee
amounts varying from one dollar to several hundred thousand
may,
dollars. consider suitable.
First Annual Report of Federal Farm Board----Review of Wheat
and
Cotton Stabilization Measures--Loans for Revolving Funds
.
In its first annual report, sent
to Congress Dec. 4, the
Federal Farm Board discusses the wheat stabilizati
on measures undertaken through the Grain Stabilizati
on Corp.; the
Board states that "there seems no reason to
question that
the various actions taken contributed materially
to support
farm prices of wheat during the crop year 1929-30,
and to
prevent substantial price declines which otherwise
would
have occurred." . . . "Nevertheless," says the
Board,
"the outcome, so far as it can now be appraised,
was not
all that had been hoped for. While some contribution
was
made toward stabilizing wheat prices at no mean
cost in
various forms, decline in prices of wheat and
otiher agricultural products, while retarded, were not
permanently
prevented. It proved undesirable to market during
the year
all of the wheat taken off the market, and it was
carried
forward under self-imposed restrictions against early
sale,
into a year of large carryover and of larger world crops."
Indicating that intensive investigation of the wheat
developments of the last several years, and of the world
wheat
outlook over the next few years had been undertaken,
the
Board said that "while it was evident that conditions of
supply and demand would change from year to year
and
cause advances as well as declines, the investigation led
to the reasoned judgment that the general level of wheat
prices in the next several years would be considerably below
the average level of the past few years and to the opinion
that the broad trend of world wheat prices in the period
1923-1937 would prove to be downward." It is added:
The Board could see no hope for arresting such a movement, or
preventing its serious consequences to American wheat farmers, by
co-operative
marketing as such, by stabilization measures of the type already
employed,
or through adopting any of the proposed measures designed to dispose
of
the surplus abroad at prices below domestic levels. The obvious and
economic remedy for the overproduction of wheat, to which our own
growers are contributing, is curtailment of production, with a view to wheat
reducing, and, if possible, eventually eliminating our export surplus so
that
the tariff might become effective on American prices.
It is noted in the report that the Board had approved
up
to June 30 1930 commitments in the total sum of $270,146,555. "Of this amount," the report continues,
"commitments aggregating $27,487,079 were canceled and/or
rescinded, in whole or in part, thereby reducing to
$242,659,476 the net amount of commitments approved
by the
Board up to June 30 1930." Of the latter total, the
sum of
$191,811,522 was advanced to tthe respective borrowers during the period covered by this report, against which advances, the principal sum of $43,195,328 was repaid during
the period in question. . . . On June 30 1930 the total
amount of advances outstanding aggregated $148,616,194,
while the amount remaining to be advanced against authorized commitments was $50,847,955. The report was submitted by Alexander Legge, Chairman of the Board. We
quote from the report, in part, as follows:
FIRST ANNUAL REPORT OF THE FEDERAL FARM BOARD.
The Federal Farm Board was created and is functioning according to
the provisions of the Agricultural Marketing Act approved by the President
on June 15 1929. The Board was formally constituted on July 16 1929.
The present report, therefore, covers practically its first year of operations,
ending June 30 1930.
The Mandate of Congress.
The intent of Congress in passing this legislation is expressed in the
declaration of policy contained in Section 1 (a) of the Act. The broad
objective, the goal to be achieved, is the placing of the Industry of agri-,
culture on a basis of economic equality with other industries. Two general
lines of action are indicated: (1) To promote the effective merchandising
of agricultural commodities in inter-State and foreign commerce, and (2) to
protect, control, and stabilize the currents of Inter-State and foreign commerce in the marketing of agricultural commodities and their food products.
Four methods to be employed in the execution of this policy are specifically
set forth:
(1) By minimizing speculation.
(2) By preventing inefficient and wasteful methods of distribution.
(3) By encouraging the organization of producers into effective associations or corporations under their own control for greater unity of effort in
marketing and by promoting the establishment and financing of a farm
marketing system of producer-owned and producer-controlled co-operative
associations and other agencies.
(4) By aiding in preventing and controlling surpluses in any agricultural commodity, through orderly production and distribution, so as to
maintain advantageous domestic markets and prevent such surpluses from
causing undue and excessive fluctuations or depression in prices for the
commodity.
Under the various provisions of the Act the Board is given large powers
and a substantial degree of discretion, but it is specifically required to
execute the powers vested in it by this Act only in such manner as will, in
blic judgment of the Board, aid to the fullest practicable extent in carrying
out the policy above declared.
The General Attitude of the Board.
The Board accepted this charge whole-heartedly, without reservations.
It has endeavored to discharge its responsibilities with sound
judgment.
The first year of its existence was an extraordinary one, a year of worldwide business crisis and recession, and of world-wide agricultural
depression.
This development, while it created certain unusual opportunities, greatly
multiplied the difficulties which the Board had to face while it was
developing policies and building up an organization. The experience of
the first
year has brought clearly into view the immensity of the
problems with
3936
FINANCIAL CHRONICLE
which the Board must undertake to deal and the complexity of their
ramifications, but at the same time it has led to the very definite conclusion that farmer organization, of all the remedies suggested, offers the
surest hope for permanent financial betterment of those engaged in
agriculture.
Throughout the Board has had to choose between action and delay. It
has sought to avoid rashness, and has resisted great pressure, refusing
to use measures which it was convinced were unwise or unwarranted. On
the other hand, it has chosen to act in emergencies at the risk of making
mistakes, rather than to make no attempt at assistance until it could be
sure of the wisest course of action at every point. In this policy the
Board has followed what it believes to be the clear intent of Congress OS
expressed in the Agricultural Marketing Act.
The report herewith submitted covers the initial doges of a major effort
to grapple with the outstanding problems which American agriculture has
faced and is facing—to work out in practice the details of a national
agricultural policy to which Congress has given expression in broad terms.
The report is presented as a record of attitude, policy, and preliminary
experience, rather than of final accomplishment. Nevertheless, significant
steps have been taken toward achievement of the ultimate goal of the
policy of Congress, and the Board believes that the experience of this first
year of operation affords a valuable guide to further progress.
The report falls into five main divisions: (1) Development of co-operative marketing associations, an outstanding objective of the Agricultural
Marketing Act, and the Board's policy; (2) surplus control measures,
Including stabilization operations, undertaken during the first year; (3)
loans made from the revolving fund; (4) various other phases of the
Board's work during its first year of operation; (5) the Board's organization and personnel.
Development of Co-operative Marketing Associations—General Policies.
In passing the Agricultural Marketing Act, Congress clearly looked to
the development of a system of co-operative marketing associations, producer-owned and producer-controlled, as a principal means for the accomplishment of the ultimate purpose of the Act. Nearly every section of the
Act reveals this plain intent. This became apparent to the Federal Farm
Board when it first met and undertook a study of the Act which it is its
duty to administer. It seemed evident that Congress held the view that
an outstanding means of bringing about equality of agriculture with other
Industries lay in the development of marketing associations, owned and
controlled by the producers of the several agricultural commodities, that
„would be large enough to obtain the economies of large-scale operation and
to exercise effective control over the marketing of a considerable portion
of each commodity. Congress looked not merely to the promotion of
cooperative marketing associations but to their development as being representative of the producers of their respective commodities and to their
Improvement in efficiency as business organizations. In Section 5 of the
Act the Board is authorized and directed (1) to promote education in the
principles and practices of co-operative marketing of agricultural commodities and food products thereof, and (2) to encourage the organization,
Improvement in methods, and development of effective co-operative associations. Such organizations, well managed and properly financed, will
enable farmers to control their industry both as to production and marketing. Accordingly, the major activities of the Board during its first year
were centered in the upbuilding of co-operative marketing associations.
While the primary purpose of the Act was to better the economic situation of the farmer, this must be accomplished through agencies which should
prove permanent rather than by temporary palliatives. To some people the
actions of the Board probably seem very slow. The policies set forth in
the Agricultural Marketing Act point to building for the future by providing for the development of permanent control by farmers over the marketing
of their products.
Improvement in farm income cannot be obtained from effective cooperative marketing alone, but requires in addition that production be
brought in line with consumer demand. There are two ways of dealing
with agricultural surpluses—prevent them and control them. The Agricultural Marketing Act mentions both, but gives first place to the former
way—pievention.
The problem of adjusting production to potential market requirements
is recognized to be a difficult one. Regulation of production is fundamental to the prevention of surpluses. Current prices tend to be reflected
In subsequent production. The Bureau of Agricultural Economics of the
Department of Agriculture, through its outlook program, is helping farmers to plan production in the light of expected demand, supply, and prices,
rather than on the price of current year's products. So long as farmers
act simply as individuals this seems to be the only practical approach to
the problem of preventing serious surpluses. But if this problem, which
is fundamental to satisfactory net income to the farmer, is to be solved,
it must be done in large measure by organized farmers who have an understanding of the national and international economic situation, and who
through their co-operative organizations are in position to exert influence
upon planting and breeding by their members and others. In other words,
the, objectives of co-operative organization among farmers must be indeed
not only control of the marketing of their own products but also the
exercise of scone influence on the quantity and quality of commodities
produced for the market.
The Agricultural Marketing Act directs the Federal Farm Board to give
assistance in the development of co-operative marketing associations but
does not empower the Board to set up organizations or to control those
now in existence or that may be organized. The Board, however, is provided with certain effective means of establishing cootacts with agricultural
producers through their co-operatives.
An important one of these is in Section 6 of the Act, which authorizes
the appropriation of $500,000.000 as a revolving fund to be administered
by the Board in making loans to co-operative associations and for other
specified purposes. Of the total sum authorized there was immediately
appropriated $150,000,000, to which an appropriation of $100,000,000 was
added on April 11 1930.
Loans may be made to co-operative associations for a variety of Furposes. The Board, believing such was the intention of Congress, has looked
upon the use of the revolving fund as a means to the end of building up an
efficient system of co-operative marketing associations, rather than merely
as a source of liberal advances of cheap money for the benefit of any and
all organizations that might be able to meet the minimum requirements
prescribed in the Act.
Loans made by the Board'are supplemental to such credit facilities as
are already available to the co-operative associations. In the case of
commodity loans to enable the association to make advances to its grower
members on delivery of their products, the association first obtains a
primary loan from a commercial bank or from one of the Federal Intermediate Credit Banks. Should it appear advisable that larger advances be
[voL. 131.
made to the growers than the primary loan will permit, the Board may
grant a supplemental commodity loan to •the association. Such advances
from the Board usually constitute only a relatively small proportion of the
total amount borrowed on the commodity and are determined in each case
by the supply, demand, and price situation pertaining to the commodity.
In this way the revolving fund has made possible operations of a much
greater extent• than might appear from the amounts of money actually
loaned to co-operative associations. It is readily apparent that the total
$500,000,000 revolving fund authorized by the Act would be utterly hisufficient to finance the movement of the entire agricultural production
entering into trade channels, which annually amounts to from $10,000,000,000 to $12,000,000,000.
Another important link between the Board and the co-operatives is
provided for in Section 3 of the Act. This authorizes the establishment, by
the co-operatives on the invitation of the Board, of a commodity advisory
committee for any commodity which the Board has designated. These
committees are authorized to confer with the Board, call for information,
and make recommendations looking toward the improvement of economic
conditions in the industry. The committee may also co-operate with the
Board in advising the producers, through their organization or otherwise,
in the development of suitable programs of planting or breeding in order
to secure the maximum benefits under this Act consistent with the policy
declared in Section 1.
At the time when the Board undertook the administration of the Agricultural Marketing Act, there were on record in the files of the Division
of Co-operative Marketing (then a part of the Bureau of Agricultural Economics of the United States Department of Agriculture but later transferred to the Federal Farm Board t) the names of some 12,000 or more
farmers' co-operative associations. While a few of these associations had
obtained a large volume of business and conducted their activities over a
reasonably large agricultural area, the vast majority were small local
associations doing business only in one or two communities. In the judgment of the Board the mere promotion of additional numbers of such small
associations would not at all satisfy the requirement that it promote an
effective system of co-operative organization. It was the conclusion of
the Board that, for the most effective and economical operation of these
co-operatives, they should be encouraged to get together in regional and
national organizations for a unified program in the marketing of their
products.
Accordingly, the Board has devoted much attention to assisting various
existing co-operative groups—each of which handles a particular commodity
or closely related commodities, such as grain, cotton, wool and mohair,
livestock—to organize national co-operative sales agencies for the collective
marketing of those commodities. Such agencies have been established for
the marketing of grain, wool and mohair, cotton, dry beans, livestock, and
pecans. Certain other commodities such as dairy products and some kinds
of fruits were already being handled on a large scale by one or more
associations, regional in scope. In still other commodities, as tobacco,
for example, national organization much await the result of extensive educational work and the formation of district and regional co-operative marketing units. This is now under way.
These central commodity associations, made up of local, State, and
regional associations, are being formed by co-operatives, not to set aside
the law of supply and demand and artificially raise prices to consumers,
but to engage in merchandising programs that will reflect back to their
farmer members the actual value of their products to processors and ultimate consumers.
These central associations have been set Up by the farmers, starting With
their local associations, and are owned and controlled by the co-operatives
that form them. The Board has not created them or dictated the terms
of their organization; it has merely advised and aided in this process.
They are the marketing agencies of the farmers who are the members of
the co-operatives.$ It is hoped that through them the producers will gain
control of a sufficient volume of the various commodities to influence
favorably the marketing methods and market flow and to have a substantial
degree of bargaining power in marketing these products. These central
associations are not agencies of the Government. The Board exercises no
control over them beyond what is incidental to their indebtedness to the
revolving fund. Care has been taken, so far as possible, to insure that
these farmer-owned and farmer-controlled agencies are set up and operate
on a sound financial basis, in order that they may grow in strength and
in time be in a position to take care of their own financial requirements
without further aid from the revolving fund.
Grain Marketing Organizations.
The first of the national commodity sales agencies organized with the
assistance of the Board was the Farmers' National Grain Corp., which was
incorporated on Oct. 29 1929.
Within two weeks after the organization of the Board, in July 1929,
representatives of all of the various types of grain co-operatives from all
parts of the country were invited to confer with the Board and develop
their own plan for a national grain sales agency. Thus, existing co-operatives organized the Farmers' National Grain Corp.
Membership in this organization is representative of the three types of
co-operatives; namely, farmers' elevator associations, terminal sales agencies, and pools. The United States was districted so as to give representation on the Board of Directors for all of the regions that produce grain.
It was provided that membership in the national organization should be
taken by the larger co-operatives, such as groups of local elevators formed
into regional co-operatives; terminal sales agencies, which also were
composed largely of local elevators; and pools that were State-wide or
regional in character.
In regions where no large-scale co-operatives existed, such as the
Pacific Northwest and the intermountain sections of Idaho and Utah,
regional co-operatives have been formed by the producers of those regions
with the assistance of the Farmers' National Grain Corp. and with the
encouragement of the Federal Farm Board. Also in some other localities
•The Board has made commitments for loans to co-operative associations
marketing a wide variety of crops and agricultural products, including
barley, buckwheat, corn, flax, grain sorghums, oats, rye, and wheat; mohair
and wool; cotton; cattle, goats, hogs, and sheep; butter, cheese, and fluid
milk; chickens, eggs, turkeys; tobacco; grass seed; and apples, apricots,
beans, cabbage, canning fruits (including berries, pears, plums, sour
cherries, &c.), dry beans, figs, general truck crops, grapes, grapefruit, green
peas, honey, lettuce, oranges, peaches, pecans, potatoes, prunes, raisins,
rice, and soybeans.
t The Division of Co-operative Marketing was transferred by Executive
order from the U. S. Department of Agriculture to the Federal Form Board,
Oct. 1 1929.
In granting loans to co-operative marketing associations the Board has
pursued a policy of insisting that membership in any general farm organization should not be a condition of membership in any member unit of the
borrowing association.
DEC. 20 1930.]
FINANCIAL CHRONICLE
3937
existing agencies consolidated and formed new regionals. Each of these which had been fixed by futures sales, amounting
to 25% of the sale price
large-scale co-operatives took stock in the national sales agency and in addition to the 65% thereof already borrowed from
the Federal intercontracted to use its services in the sale of members' products.
mediate credit banks. On Sept. 5 1929 the Board expressed its willingness
Through these co-operatives the grower is given three options of sale; also to make supplemental loans of 10% of the market price
on cotton the
namely, (1) he may sell his grain for cash on the day of delivery at the final sale price of which had not as yet been determined. On the
basis just
local market at the prevailing competitive price; (2) he may store his mentioned three associations applied for and obtained commitments
prior
grain in a licensed, bonded warehouse, receive an advance on it and "call" to Oct. 21 1929, when the Board announced a policy
of making loans on
the day any time during the marketing year when he wants it sold; (3) he seasonal pool cotton in an amount sufficient
to enable the associations to
may enter it in a pool, receive an advance on it, and take the average borrow on an average 16c. per pound from all credit sources.
price with all other growers for grain entered in the pool. The Farmers'
All of the cotton co-operative associations except one obtained funds
National Grain Corp. sells or directs the sale of all of the grain of its on this basis; but as it was designed by the Board primarily
to protect
members. The farmer never is required to take an arbitrary or fixed price. the price of cotton from the effects of the
general drop in prices which was
Settlement for his grain always is made on the basis of the price for at that time beginning to take
effect, more complete discussion of these
which it is sold in the competitive market. The purpose is to give the loans is deferred to a subsequent
part of this report.
grower the widest leeway in determining when his grain shall be sold,
In addition to loans made to assist the associations in advancing a greater
while obtaining the benefits of large volume control in marketing and proportion of the market value
of the crop to their members, the Board
efficient merchandising through a central sales agency.
granted to the Texas association a loan to assist it in expanding its program
The membership of this national sales agency on June 30 1930 included for the acquisition and operation
of cotton gins, a program which was
25 stockholding associations representing farmers' elevators, terminal sales already far advanced at the time
the Board was organized.
agencies, and pools that embraced more than a quarter of a million
Surplus Control Measures, Including Stabilization Operations.
producers.§
The Farmers' National Grain Corp. is farmer-owned and farmer-controlled
Measures for surplus control and prevention, including what may be
within the definition of the Capper-Volstead Act. Its main office is in termed "stabilization operations," appear in the Agricultural Marketing
Chicago, Ill. It has established branches in all of the principal terminal Act second in importance only to measures for building up effective co-operamarkets. The corporation has also an export department, which makes tive marketing associations, and are closely linked with them.
possible control of the farmers' grain until it reaches the ultimate purchaser
One of the stated major objectives of the Act is "to protect, control, and
In any or all foreign countries.
stabilize the currents of inter-State and foreign commerce in the marketing
Storage facilities have been acquired in most of the principal domestic of agricultural commodities and their food products. . . ." The Fedmarkets, largely by lease. Acquisition of adequate terminal storage space eral Farm Board is charged with the task of "aiding in preventing and
is necessary, in order that farmers may have all of the benefits that accrue controlling surpluses in any agricultural commodity, through orderly profrom conditioning and improving grades.
duction and distribution, so as to maintain advantageous domestic markets
While the Federal Farm Board took the first steps looking toward the and prevent such surpluses from causing undue and excessive fluctuations
or
formation of the Farmers' National Grain Corp. within two weeks after depressions in prices for the commodity." Provision is made for resort to
its organization, it was impossible for the national association to be
corporations
stabilization
when
the
Board
and
the
advisory
commodity
established and in a position to handle grain until the season of heavy
movement committee consider that this special machinery is necessary. In Section 5
had passed. In order to be of assistance during the 1929
crop season to the Board is authorized and directed "to investigate conditions of overprothe existing grain-marketing associations that were taking
part in the duction of agricultural commodities and advise as to the prevention of such
formation of the national organization, the Board early in September
1929 overproduction."
announced its willingness to make supplemental commodity loans to
The problem of agricultural surpluses and instability is not new. In
enable
the co-operative associations to make greater advances to
their members recent years it has been the subject of continuous discussion, and many
than could otherwise be done. During the following two
months, loans of schemes for solving it have been proposed.
this nature were granted to associations applying therefor
The end sought by Congress, as the Board interprets it, is to moderate or
of the following
basis: An advance of 10c. per bushel by the Board in addition to
the eliminate "undue and excessive" fluctuations in prices, such as tend to
funds already borrowed from primary lenders on the security of the wheat Injure the farmer-producer; and to moderate or eliminate the
causes of
in storage; or an advance by the Board on wheat, the sale price of
which such "undue and excessive" fluctuations. Not stabilization, in the sense of
had been fixed by hedging, an amount sufficient to bring the
total rigid fixation or leveling of prices, but stabilizing, in the sense of limiting
advances of the Board and the primary lenders to 90% of the
current fluctuations and cushioning the shocks from severe fluctuations, is regarded
sale price. . . .
as the objective. Even this end is to be sought only in so far as it promises
real benefit to farmers, not only for the time being but over a period of
Cotton Marketing Associations.
years.
Third among the national co-operative sales agencies to be
established
Congress avoided imposing upon the Board any particular scheme or
with the counsel and assistance of the Board was the American
Cotton schemes—rather, it gave authority for the employment of certain methods
0o-operative Association, incorporated Jan. 13 1930. This
organization and machinery, to be used at the Board's discretion. The Board has, howIs owned and controlled by nine State-wide associations operating
in
Carolina, South Carolina, Georgia, Alabama, Mississippi, Louisiana, North ever, interpreted the Act to mean that Congress counts upon the Board not
Texas, merely to study the problem but to act with vigor when conditions appear
Oklahoma, and California, and two regional associations, one
covering areas to demand action, even at the risk of loss to the revolving fund; and to
In Tennessee, Arkansas, and Missouri, and another handling
cotton in the develop through experience the methods best calculated to attain the
irrigated sections of far western Texas, New Mexico, and Arizona.
It is objectives of the Act.
estimated than more than 160,000 cotton growers are affiliated
with
The Board recognizes four principal groups of stabilizing measures. In
organizations and that between two and one-half and three million these
bales the first place, it conceives that the normal development of co-operative
of the 1930 cotton crop will be delivered to the member
co-operatives and marketing associations should contribute appreciably toward stabilizing
marketed by the American Cotton Co-operative Association.
and marketing and production of agricultural products, and thereby to the
When the Board undertook its duties in the summer of 1929 there
operating in the cotton belt 14 cotton co-operatives that handled were stabilizing of farm prices and farm incomes. All efforts toward building
short. up the co-operatives, strengthening their financial position, enlarging their
staple cotton and one association that marketed long-staple
cotton.* It scope of operations, and improving their efficiency are calculated to serve
was felt by the Board that these associations, each of which was
acting as
broader purpose than merely an extension of a comparatively new type
its own sales agent, in competition with all of the others, could
be far of organization. If the co-operatives are to justify the public efforts made
more effective in obtaining a satisfactory price to the farmer for his
in their behalf, they will develop, by assisting in the regulation of produccotton
If a joint sales agency or some closely centralized plah were
established to tion and orderly marketing, into stabilizing factors of no mean importance.
handle all the cotton marketed co-operatively. Accordingly, the
Board It is the Board's belief that as farmers become increasingly conscious of
called a meeting of representatives of the cotton associations early
in the marketing problems which excessive production entails upon their own
December to enable co-operative leaders to develop their own plan
for a agencies they will feel the full force of the necessity of adjusting their
central cotton sales organization. The entire membership of the
Board production, so far as possible, to effective market demand. On this subject
of Directors of practically all cotton associations attended this
meeting. little can be said in this report, for it is too early to appraise, in this
It was felt by the long-staple association that the marketing of long
-staple connection, the result of the co-operative marketing development during the
cotton differed so materially from that of the usuual short-staple type
that first year.
nothing would be gained by its joining the national organization. The
other
In the second place, the Board recognizes the possibility of specific emerassociation concurred in this view. Accordingly, the new national
sales gency surplus control or stabilizing measures undertaken by the co-operatives
agency was former only by the short-staple associations.
themselves, with or without aid from the board. Such actions have been
It is contemplated that the national association will undertake all
the attempted in the past, at times with success, but often ending in failure.
processes involved in handling the cotton after its delivery to the
State During the last year the board has assisted in several undertakings of that
associations, by the members, including classing, warehousing, and
financ- character; some of these, so far as they had been carried up to June 30 1930,
ing, as well as sales. The State associations will, of course, continue
to have been discussed in the preceding section; others will be touched upon
maintain direct contact with their grower members.
In this section. There is, in the opinion of the board, a limited field for
While most of the State cotton associations handle sufficient volume
to such operations; but the experience of the last year has reinforced earlier
permit their economical operation, it appeared that the associations
in experience in showing that such measures can not wisely be undertaken
Tennessee, Arkansas, and Missouri were comparatively small for the moat
lightly, for many involve not only excessive risks of loss of public funds,
efficient operation. Consequently the Beard encouraged the abandonment
but grave danger of serious disaster to co-operatives themselves.
of these three associations and the formation of a new organization,
known
In the third place, the Board recognizes the potential importance of
as the Mid-South Cotton Growers' Association, which is was believed
could stabilizing operations of a major character, such as may involve resort to
operate with increased success over all the cotton-producing area of
the stabilization corporations. Under stress of circumstances during the last
three States while incurring the overhead expense of only one office
instead year, two measures, undertaken initially in the hope that they would be
of three.
only of a minor character, developed into stabilization operations of a major
In order to assist in the reorganization of these co-operatives, the
Board scope. These are discussed, as of June 30 1930, in the sections on wheat
granted a small loan to the national organization to aid in financing
the and cotton below. Experience with these measures is too brief for final
Mid-South association until receipts of cotton for the current year
should appraisal; but the Board has regarded the procedures as too little tested to
begin. The Board also assisted with a similar loan in the
establishment warrant their application in a large number of other cases in which the
of a new cotton-marketing co-operative in Mississippi to replace the
previous Board was urged to take similar steps.
Mississippi association which failed at about the time the
Board was
Finally, the Board regards measures for prevention of surpluses, through
organized.
control of excessive production, as absolutely essential to stabilizing farm
Prior to the formation of the American Cotton Co-operative
Association
prices
and farm incomes. Co-operative associations and stabilization corthe Board undertook to render direct assistance to the various State organizaporations, supplemented by other devices, may prove able to deal with temtions.' On Aug. 19 1929 it agreed to make loans on cotton, the
price of porary or occasional surpluses. But none of these, nor all together, nor any
Government agency can protect farmers from the consequences of repeated
§ In the first three and a half months of its operation in the new
crop
Farmers'
National
Grain Corp. handled more than
year the
50,000,000 or continuous production in excess of market requirements. Adjustment'
bushels of grain. Of this quantity, more than 40,000,000 bushels
of production to market requirements are indispensable, in agriculture as in
VMS
wheat, about one-fifth of which was sold for export into eight
foreign industry, to the solution of surplus problems.
countries.
The problems of control and prevention of agricultural surpluses are vast
* The membership of the Staple Cotton Co-operative Association,
quarters at Greenwood, Miss., is composed almost wholly of growers of headlong. and complex. The Board has approached the task with courage, but not In
staple cotton living in the Yazoo-Mississippi Delta. This organization
also a mood of lightly experimenting with large public funds and powerful ecoobtained loans from the Farm Board during the past season.
nomic forces. It recognizes that experience as well as investigation
is
3938
FINANCIAL CHRONICLE
essential in working out effective solutions to these problems. If sound
Progress is to be made, the experience gained in a single year must be
utilized to the full in subsequent actions. With this in mind, the stabilizing
endeavors up to June 20 1930, are reviewed below.
Wheat Stabilization Measures.
A number of different steps was taken during the year to prevent what
prices.
were considered to be "undue and unwarranted depressions" of wheat
An exhaustive discussion of these measures would be too lengthy for this
these
of
report, and it is too early to complete the statement. A resume
given
activities and the reasoning which underlay them, however, may be
here.
The first step was taken early in August 1929. Cash grain had gone to
unusual discounts under futures prices, and in the first few days of August
a sharp fall in both cash and futures prices occurred. It seemed clear that
this was due primarily to unprecedented marketing's of wheat in this country, chiefly of hard winter wheat from the Southwest, and to resulting
and 7,
congestion at terminals. The Board acceringly issued on August 3
two warnings urging farmers not to rush-their wheat to market. Whether
the
or not because of this advice, the movement slowed up greatly, and
decline in prices was checked.
co-operof
desires
with
Later in August the Board expressed its sympathy
atives to hold wheat for better prices, in view ef the then favorable outlook
agency
for world supply and demand. The organization of a central sales
for the co-operatives was pushed as fast as possible. Pending its organizagrain
qualified
tion the .Doard on September 5 1929, announced that duly
Board
co-operatives could obtain supplemental commodity loans from the
90% of
on the basis of 10 cents a bushel on unsold wheat, or on a basis of
A
the value of wheat en which a price had been fixed by sale or hedging.
limited number of co-operatives was in a position to take advantage of these
[Vol.. 131.
run wheat were made only from qualified co-operatives and their members.
The Stabilization corporation meanwhile undertook to support the market
by buying cash wheat at market prices and by buying May futures. In explanation of these actions the Board announced, on March 6:
The Grain Stabilization Corporation will continue buying wheat at the market
necessary to
and remove from the market whatever additional Quantity may be prices.
The
relieve the pressure and prevent any considerable decline in wheat
funds
whatever
organization
farmer's
this
Farm Board is prepared to advance to
are necessary for that purpose.
The stabilization corporation Is being accused of speculating in the grain market.
There is no foundation in fact for such statement. The stabilization corporation
Is prepared, and expects, to take delivery of all grain purchased on futures contracts and merchandise it as the market conditions will permit.
These actions served to prevent a severe threatened break in wheat prices
in this country in February and March, in the course of which Liverpool
prices fell to a low point in mid-March. At the same time, however, they
interfered with the normal use of the futures market for hedging purposes
and disturbed customary relations between wheat prices at different points.
Furthermore, the Grain Stabilization Corporation had to face the possibility
of acute difficulties in connection with deliveries on May futures, particularly
in Chicago.
In order to cope with these problems, the stabilization corporation found
it ad isable to ebtain the co-operation of millers. A form of agreement was
prepared under which contracts might be made between the corporation and
individual millers. The agreement provided that within 45 days of the
signing of the agreement, the corporation might ship to the miller, for
storage, quantities of wheat up to an agreed maximum, of a grade, variety,
and quality specified by the miller, such as the miller might later wish to
purchase in meeting his milling requirements. Or the miller might purchase
on the open market with the approval of the corporation, not to exceed an
agreed maximum quantity of such wheat, and immediately resell it to the
corporation for storage with the miller. Such wheat was to be stored by the
miller free of charge, but was to be insured at the expense of the corporation.
The miller was to have the option of purchasing all or any part of this
wheat at the market price, on or before an agreed settlement date, and was
to give preference to such wheat in filling his requirements. If, on the
other hand, within five days of the agreed settlement date the miller decided
not to purchase this wheat, the corporation assumed the obligation of load!mg it out, on notice from the miller, at the corporation's expense.
The object of this arrngement was to make it possible for a miller to
obtain his wheat requirements without the need of resorting to hedging, and
to permit the Grain Stabilization Corporation to place wheat in positions
where it would presumably be used rather than have it concentrate at terminal markets, such as Chicago. Co-operation under this agreement was
an important factor in reducing the volume of wheat on which deliveries
had to be accepted in Chicago in May, in preventing uneconomical movements of wheat and in averting threatened congestion at Chicago.
Another pargraph in the draft agreement provided that the corporation
might accept bids from millers for wheat from its stocks to be manufactured into flour for export before August 15 1930, when such bids were on
a parity with the market value for export of wheat of similar grade, quality,
and position on the day of the bid. This pargraph was inserted in recognition of the fact that wheat in certain positions was out of line with export
parity, while at other positions it was in line. The objective was equalization of competition between millers at various points. The total volume of
wheat thus sold was not large.
Under the influence of new-crop prospects and other market news,
wheat prices in world markets advanced from the middle of March until
late in April. This recovery brought prices in this country again into line
with world markets. It appeared to justify the general policy of the Board
and the actions of the Grain Stabilization Corporation, and permitted the
corporation to reduce its holdings somewhat. This advance proved temporary, but declines in late April and early May were followed by fresh
advnces.
The extent of the actual operations in the wheat market was substantial.
From the day of its organization until June 30 1930, the Grain Stabilization Corporation and the co-operatives affiliated with it held control of a
quantity of wheat equal to approximately one-half of the visible supply of
wheat. Prior to June 30, the corporation had succeeded in marketing (mostly
through export channels) enough grain to reduce its obligations to the Board
by about one-fourth. On June 30, it owned something over 60,000,000
bushels of wheat and futures.
In spite of these measures wheat prices declined heavily in June as newcrop wheat began to move to market, and subsequently reached still lower
levels. In the early stages of this decline, the general manager of the
Grain Stabilization Corporation made, on June 26, the following important
announcement of policy:
The Grain Stabilization Corporation discontinued the sale of wheat when the
new crop began moving with the exception of a few small lots to millers who were
unable to take care of their immediate needs from any other source.
excess of that
While the visible supply of wheat In this country Is somewhat in of
1929 wheat
amount
of a year ago—a fact grain traders are emphasizing—theCorporation
is approxiwithdrawn from the market by the Grain Stabilization
wheat on
of
amount
the
that
leaving
increase,
of
amount
the
times
three
mately
the market substantially below last year's figure.
wheat held
The grain trade need have no apprehension of competition from the
by the Grain Stabilization Corporation during the coming months when farmers
will be moving the 1930 crop to market unless in the meantime prices rise to the
level at which purchases were made. In no event will this 1929 stabilization wheat
be thrown on the market in a way to depress prices.
loans.
Accompanying
Meanwhile a serious crisis in the stock market developed.
this development, and in apparent sympathy with it, wheat prices reacted
cents a
sharply. From October 15 to October 25 the decline was about 15
This
bushel. On a single day, October 24, wheat dropped 9 or 10 cents.
be due to purely temporary factors unconnected with the
then appeared
to
continued
which
whole,
demand and supply situation for the year as a
point to higher levels of wheat prices than those prevailing.
as
The situation seemed to call for emergency action in regard to wheat
wheat
well as cotton. An extraneous factor appeared to be depressing the
prices.
market and threatening a severe though unwarranted decline in wheat
have
Serious weakness in wheat and cotton prices could be expected to
through
indirectly
but
directly
only
not
seriously adverse effects on farmers,
contributing to weakness in commodity prices in general and the entire business situation. In all the circumstances substantial efforts to prevent such
a course of events seemed clearly worth making.
The Board therefore took, on October 26, the far-reaching step of offering
to loan to co-operatives up to stated values on various grades in the leading
terminal markets. These were approximately the closing prices as of October
25 for these grades. By this means it was hoped to prevent an unwarranted
decline in prices.
For the time this move appeared to be successful. Wheat prices recovered
considerably by the end of October; and the further decline in November
to a low point on November 13, coincident with the low point in prices of
Industrial stocks, was followed by recovery to well above the October low.
After further weakening in prices occurred in the middle of December, the
Farmers National Grain Corporation, on December 19, posted offers to buy
wheat at the loan value, and obtained no wheat. In January, when this
policy was repeated, some wheat was acquired.
The policy of lending up to stated values was adopted, not only in circumstances that appeared to justify extraordinary measures, but in the light
situation.
of analysis of the beat information obtainable on the world wheat
was
The world crop of 1929 was known to be a relatively short crop and
of 1928.
crop
large
reckoned more than 600,000,000 bushels under the
European
While oarry-overs in exporting countries were known to be large,
importing countries were expected to need and to take large quantities of
wheat. Higher prices than those prevailing were anticipated, not only by
Board,
the United States Department of Agriculture and the Federal Farm
but by large sections of the grain trade, here and abroad, including some of
this
the most experienced grain dealers. The action taken was based on
declines
interpretation of world conditions, in the light of which wheat price
appeared unwarranted.
This view was not borne out by actual developments. Facts eventually
proved it wrong. The major error lay in the estimate of European import
purchases. Three important factors were incorrectly forecast: (a) European
of
carry-overs of wheat were unusually large; (b) Europe's excellent crops
of
other cereals, as well as wheat, made possible substantial curtailment
wheat imports; (e) European countries took steps to restrain wheat imports,
cases,
by milling regulations, increased tariffs, and otherwise—and in a few
notably France, to encourage wheat exports. Moreover, civil war and the
depreciation of silver reduced China's imports, and Argentina proved to
have much more wheat for export than her underestimated crop of 1928 had
indicated as probable.
These facts only gradually became clear, but in retrospect they are inescapable. It is a striking fact that whereas the world wheat crop of 1929
was more than 500,000,000 bushels less than that of 1928, the international
wheat trade was reduced by more than 300,000,000 bushels, and the world
There seems no reason to question that the various actions taken conwheat carry-over, as far as can be ascertained was reduced by only about
farm prices of wheat during the crop year
100,000,000 bushels between July 1 1929, and July 1 1930. An extraordi- tributed materially to support
substantial price declines which otherwise would
nary contraction of import purchases took place, to a degree unforeseen by 1929-1930, and to prevent
have occurred. The final effect on the revolving fund can not be stated
any observers when the steps previously mentioned were taken.
has disposed of its holdings.
Under the influence of record visible supplies and continuing slackness in until the stabilization corporation
At the time these actions were taken the Board believed that they were
export business, wheat prices weakened in January and February. It was
great deal of criticism, it is believed that,
felt proper to offer resistance to this tendency, in the belief that it would justified. While they aroused a
the Board would have been properly
prove temporary. Purchases of country-run wheat by the Farmers National in the circumstances as they developed,
to use its powers in attempting,
Grain Corporation at the loan value served for a time partially to support 'subject to severe condemnation had it failed
that arose.
wheat prices to farmers. As this proved inadequate, The Grain Stabiliza- by every reasonable means, to cope with the emergencies
Nevertheless, the outcome, so far as it can now be appraised, was not
tion Corporation was recognized early in February on the recommendation
all that had been hoped for. While some contribution was made toward
of the Wheat Advisory Committee.
forms, declines in
The purchase of country-run wheat, first by the Farmers National Grain stabilizing wheat prices, at no mean cost in various
retarded, were not
Corporation and subsequently by the Grain Stabilization Corporation, was prices of wheat and other agricultural products, while
during the year
predicated upon certain desired results: First, as a means of stabilizing the permanently prevented. It proved undesirable to market
was carried forward under
market and in the process to secure the better grades of wheat, which could all of the wheat taken off the market, and it
a year of large carry-over
be carried to hest advantage and possibly aeld later at a premium; and, self-imposed restrictions against early sale, into
second, to give the benefit of the loan basis to farmers who were not in a and of larger world crops.
From the foregoing experience the following conclusions may be drawn:
position to borrow through a qualified co-operative. In the course of this
1. In a major stabilization operation with a commodity such as wheat, it
procedure it was found that others than producers were taking advantage
commodity must be taken in order
of this type of buying, and some who earlier had purchased wheat from the is inevitable that a large quantity of the
Furthermore, the accumulation
farmer and hedged it were selling it to the Grain Stabilization Corporation to exert any material effect on the market.
must be in the visible
at an unwarranted profit. Thereupon, such general purchasing was discon- of a substantial volume, the most of which necessarily
upon prices. Announcement that
tinued, and for a brief period, ending March 1, the purchases of country. supply, has a somewhat depressing effect
DEC. 20 1930.]
FINANCIAL CHRONICLE
such accumulations will not be sold is not sufficient to reassure buyers unless
the quantity thus held renders difficult the purchase of supplies adequate to
the demand. Even then the demand is curtailed or limited to immediate
requirements, and forward buying in anticipation of future needs is lessened.
2. Purchases in the cash market alone are inadequate to sustain prices
and do great injury to legitimate operations in the option market by throwing cash prices out of line with the futures. This being true, a stabilization activity must be conducted along the entire line with the inevitable
result that large purchases for future delivery must be made. Wheat thus
secured by delivery on futures contracts is contract grade and may vary in
actual value from 2 to 5 cents below country-run wheat.
3. Transactions in the futures market having been entered upon, there is
no good place to stop, even within the limits of a single crop-marketing
period. Option prices are published covering a period of from six to nine
months in advance, and as won as any future option is abandoned or militated against, that option gets out of line with the cash market and other
options. This imposes considerable hardship upon processors whose customary practice of hedging or insuring their purchases is conducted through
the futures market.
4. The storage problem is a serious one in any stabilization activity. The
grain must be in a position where warehouse receipts can be issued against
it as a means of insuring safe delivery of the commodity. The facilities for
doing this are limited. Mostly they are needed for the ordinary storing and
merchandising of all kinds of grain. Therefore, when a large quantity of
wheat is purchased and held in terminals or public warehouses, it not only
becomes a part of the visible supply, but renders the facilities inadequate for
handling the grain of the growers, merchants, and processors. Some of the
grain of the stabilization corporation inevitably gets out of position for
most economical use or sale.
5. Stabilization corporation activities, as usually considered, mean principally buying, not selling. This is particularly true when the price is low
and markets are weak. Sales by a stabilization corporation tend promptly
to turn the market downward and abundant complaint is received from growers who are still holding their grain. With the price at a level satisfactory
to growers, assuming it can be put there, wheat rolls into the terminals.
When the terminals are full, rarmers who can not sell complain bitterly; the
visible supply is increased; in the first six months of the iaew crop year our
best export period passes and the stabilization corporation finds
itself with
abundant supplies to be marketed in competition with all export countries.
Charges for carrying wheat are cumulative at about 1% cents per bushel per
month, and the operation, to break even, must include these charges when
the grain Is sold.
There is a field for stabilization measures—just how large a field the
Board is not in a position to determine—but the experience described indicates to some extent the difficulties and hazards that are involved in stabilibzation procedures.
The situation faced in the early summer of 1930 did not, in the Board's
best judgment, warrant further action of the same sort at the outset of the
crop year 1930-31. In this country stocks on fume, in country mills and
elevators, and in visible positions were at record levels. So were visible
world supplies after a short-crop year in 1929. World stocks as a whole
were known to be very high, though probably below the record levels
of
1929. European restrictions were maintained or intensified. Business
depression was world-wide. The 1930 world wheat crop promised to
be considerably larger than that of 1929. China, as well as India, had a
large
wheat crop. There was no prospect of difficulty in supplying
import requirements of wheat-importing countries. In the extraordinary circumstances
prevailing, no reliable estimate of the true value of wheat could be
made.
Further substantial purchases by the Grain Stabilization Corporation
would
have caused congestion at terminals and restricted disposition of wheat for
export and feed. Merely taking more wheat off the market and holding it
could not long prevent such declines in price as were justified by conditions
then existing, and would have had numerous undesirable consequences, including the further accumulation of stocks at a probable loss to the
Public
Treasury.
It was clear, in the early stages of the Board's work, that no important
stabilization efforts could succeed, except temporarily, unless farmers themselves adjusted production to prospective demand. Intensive investigation
of the wheat developments of the last several years, and of the world wheat
outlook over the next few years, for the United States in particular and the
world at large, was, therefore, undertaken in compliance with provisions of
the Agricultural Marketing Act, and in co-operation with the United States
Department of Agriculture.
This investigation made clear that for several years world wheat production had been outrunning wheat consumption and that, for five or six
years, carry-overs had been piling up, both in this country and in the
world at large. The year 1929-30, when the world wheat crop was short
(over 500,000,000 bushels less than in 1928), had been expected to witness
a great reduction in excessive carry-overs. In fact, the reduction proved
surprisingly small. Stocks in the United States and Canada, and visible supplies in the world at large, actually increased over the fevo.d levels of
1929. Only by taking into account reduced supplies in Argentina and
smaller unrecorded carry-overs in Europe could it be asserted that stocks
were lower on July 1 1930, than on July 1 1929.
It also appeared that the trends of acreage and production in various
wheat-producing countries, and of wheat consumption as well, were such as
to threaten continued depression of wheat prices. While it was evident that
conditions of supply and demand would change from year to year and cause
advances as well as declines, the investigation led to the reasoned judgment
that the general level of wheat prices in the next several years would be
considerably below the average level of the past few years and to the opinion
that the broad trend of world wheat prices in the period 1923-1927 would
prove to be downward.
The Board could see no hope for arresting such a movement, or preventing its serious consequences to American wheat farmers, by co-operative
marketing as such, by stabilization measures of the type already employed,
or through adopting any of the proposed measures designed to dispose of
the surplus abroad at prices below domestic levels. The obvious and economic remedy for the overproduction of wheat, to which our own wheat
growers are contributing, is curtailment of production, with a view to
reducing and, if possible, eventually eliminating our export surplus so that
the tariff might become effective on American prices.
Even before this investigation had been completed, the Board undertook, in co-operation with the Federal and State extension services, to urge
upon the spring-wheat growers of the Northwest a 10% reduction in spring
wheat, especially durum. There was considerable response to these efforts,
and durum acreage was reduced substantially, with favorable effects on
durum prices; but the net reduction of spring-wheat acreage was only about
4%. In order further to develop this policy and its application in the
bard winter wheat area, where expansion of acreage has been greatest, the
3939
Board participated in a regional conference of agricultural economists and
extension workers from the United States Department of Agriculture and the
States concerned, at Manhattan, Kans., on June 19-21 1980..
The Board recognizes that in order to obtain effective and appropriate
readjustments in the production of wheat, or any other farm product, a very
complex task is involved. The most profitable readjustments are different
in different sections. The broad facts as to the outlook for wheat and
other products, and also more specific knowledge as to local applications of
these facts as well, must be developed and brought Louie to individual
farmers. The utmost co-operation of agricultural colleges, extension workers—Federal and State, vocational teachers, and of bankers and business men
as well—must be effectively enlisted in the effort. Co-operative marketing
associations and other farmers' organizations have a large part to play in this
work. The Board considers the steps taken during the last year as constituting only a beginning in this essential field of it. activities in the prevention and control of agricultural surpluses.
Cotton Stabilisation Measures.
The general position of the Board, as expressed above with respect to
stabilizing measures in wheat, applied also to cotton; but in certain regards
the situations, actions, and developments were significantly different.
Cotton prices in the first week of August 1929 were around 18% cents
a pound, middling %-inch staple, average at the 10 designated spot markets. In the following 10 days prices dropped 1 cent a pound under the
Influence of an official crop forecast (15,543,000 bales) much larger than
had been expected. On August 19 the Board announced its initial loan
policy of lending to qualified cotton co-operatives enough to bring the total
advances to 90% of the market value on cotton on which a definite value
had been fixed by sale or hedging. In the next two weeks prices recovered to about the level of early August. On September 5 the Board announced that supplemental commodity loans would also be made on cotton
on which the value had not been fixed sufficient to bring the total up to
75% of the market value at time of delivery.
By September 11, however, cotton prices had again fallen below 18 cents,
despite the fact that the September estimate of the crop was 718,000 bales
under the August estimate. Further weakness in prices developed in the
first half of October, carrying average prices in the 10 spot markets down
nearly to 17 cents a pound. This was the lowest level since 1921 except
1926-27, when supplies were notably abundant, and on rare occasiona in
other years.
Neither the carry-over on August 1 1929, nor the cotton crop of 1029
appeared excessive in the light of current consumption and prospective
demand for raw cotton. The depression appeared to be due primarily to
two facters—developing weakness in the stock market and unusually rapid
marketing of cotton, which was favored by open weather in the South. At
this time there seemed to be no basis for anticipating such drastic slackening
of business activity and such great curtailment of cotton consumption as
eventually took place.
The Board considered that this situation called for special efforts of a
stabilizing chareter to protect cotton growers, so far as possible, from the
effects of what seemed to be unwarranted depression of the price of their
product, particularly since these were occurring at the time of the
heaviest movement of the crop. •
Accordingly, on October 21 the Board expressed its belief that the then
prevailing prices of cotton were too low, and announced a policy of advancing to qualified cotton co-operative associations such sums as would
enable them to borrow from all sources up to 16 cents a pound, basis middling %-inch staple, average of the 10 designated southern spot markets.
On the date of this announcement 16 cents was about 92%% of the
average price in these 10 spot markets (17.31 cents). While it was recognized that at such a time the policy of a fixed-loan basis at the stated level
involved snore than ordinary business risks, it was considered justified as
a means of preventing a threatened demoralization of the cotton market in
a critical juncture for the cotton growers and the general business situation.
Advances aggregating about $18,500,000, entirely in the form of
secondary loans, were eventually made on this basis to 13 short-staple
cotton co-operative associations.
The early results were gratifying. Prices of cotton, while apparently
influenced severe declines in the stock market, did not fall as low as 16
cents when stocks crashed to their low point on November 13. From the
middle of November until late in January 1930, when the growers had
marketed most of their crop, cotton prices fluctuated within a narrow
range, mostly between 16% and 17 cents. There seems no reason to doubt
that the announcement of the loan bade and the consummation of advances thereunder were major factors in tiding the cotton market over a
threatened crisis, and thereby enabled cotton growers to obtain much
higher prices for cotton sold or delivered during that period than they
would otherwise have received.
Unfortunately, this was not the end of the matter. Cotton prices did not
show suetained advances. Under the influence of the developing business
recession, cotton consumption by domestic mills was greatly curtailed.
Exports, too, declined, as Indian and other foreign cottons fell to unusual
discounts under American cotton and foreign mills reduced their takings of
American cotton. Stocks of American cotton consequently rose above the
usual seasonal proportions • as the year wore on, curtailment of textile
activity, both here and abroad, continued; and the situation grew worse
Instead of better.
In the last week in January cotton prices began a long decline. They
broke through the 16-cent level on January 30. That afternoon the Board
issued the following statement:
Commenting on press dispatches from New Orleans to the effect that cotton
Prices have declined $2 a bale there as a result of a statement by him to the effect
that the Federal Farm Board will not buy cotton at prices higher than the market.
Chairman Legge said:
"Reports of what the board contemplates doing eventiy have been garbled.
The board is not going to buy cotton or any other commodity at any price.
"There has been no change whatever in the board's cotton loan policy. The
board will continue to make supplemental commodity advances to the cotton
cooperative associations on the cotton loan value basis announced Oct. 21 1929,
and has no intention of calling loans already made to these associations."
Beginning with the 16-cent loan advances to the co-operatives and following upon the fall of the commodity thereafter, the price of cotton soon
reached such a level that the co-operatives could not dispose of it at a price
sufficient to pay the necessary carrying and transportation charges and the
loans made thereon by the Board and other financial institutions. It was
necessary, however, for the co-operatives to continue marketing their cotton
in order to fill the demands of their customers and to maintain their bust* This conference was followed by a series of farmers' meetings in the several
bard winter wheat states (at which the Chairman of the Federal Farm Board. the
Secretary of Agriculture, and State representatives spoke) and by subsequent
extension efforts. Somewhat similar steps were taken in August in the soft red
winter wheat belt and in the Pacific Northwest and territory tributary thereto.
3940
FINANCIAL CHRONICLE
nesa. To effect such sales and yet to maintain their position in cotton for
they
the security of the Board, the co-operatives replaced any cotton which
New
sold by the purchase of contracts for the delivery of cotton upon the
previously
York Cotton Exchange. In addition, the co-operatives also had
optional
the
of
handling
acquired a large volume of futures contracts in the
prepayment
pool cotton of their members. These transactions required the
of a portion of the purchase price of such contracts.
inAs the market fell the amount of such prepayment requirements
sufficient
creased to a point where the co-operatives were unable to secure
in
co-operatives
funds to meet them. Late in January the position of the
contracts
the market became so seriously impaired that sales of these futures
to the
were being forced, to an extent that threatened not only serious loss
throughco-operatives and the Board but complete demoralization of prices
out the cotton world. On February 3 1930, an arrangement was perfected
Farm
between the American Cotton Co-operative Association, the Federal
Board, and the co-operatives to which the Board had loaned money, through
handling
which the American Cotton Co-operative Association took over the
cotton.
of the cotton of the members and the protection of their position in
delivBy these means the market situation was protected. Later the cotton
co-operatives
ered on these futures contracts replaced the cotton which the
into
went
later
had sold as spots. This cotton was a portion of that which
the hands of The Cotton Stabilization Corporation.
interruptions
The price decline continued, however, with occasional
10, prices
until early in March. From a low point of 13.67 cents on March
this
recovered to se,arly the 16-cent level early in in April; but part of
from the
cents
advance was soon lost, and prices fluctuated around 15
known
middle of April until late in May. During April and May the
conpolicy of the cotton co-operatives to accept delivery on their futures
tracts was a major factor in the strength of the market. This operation,
to
however, gave rise to disparities among various cotton futures, helped
keep American cotton prices out of line with cotton prices abroad, and
probably restricted exports somewhat.
The Cotton Advisory Committee, created by the co-operatives under
May 16
authority of section 3 of the Agricultural Marketing Act, met on
and 17 and went carefully into the whole situation. It was then apparent
the
that no substantial recovery in cotton prices could be counted upon in
stocks
near future. It was also considered that forced liquidation of the
of the co-operatives, upon which Federal Farm Board funds had been advanced, would have several serious results: To depress the cotton market
to such a further extent that heavy losses on board loans would be inevitable,
as the co-operatives had no large assets beyond the commodity itself; and,
further, to injure seriously outside growers, cotton mills, and the cotton
trade in general. The committee therefore recognized the necessity of withdrawing from the market the distressed cotton held by the co-operatives.
As announced on June 5, the committee reported to the board that there
was an emergency in the American cotton market requiring a stabilization
operation such as is contemplated in section 9, paragraph (d) of the Agricultural Marketing Act, and recommended that such operation should be undertaken. Accordingly, the Cotton Stabilization Corporation was formed by
the cotton co-operatives and incorporated on June 5; and soon after, on
recommendation of the Cotton Advisory Committee, the Board recognized
it as a stabilization corporation under the Agricultural Marketing Act.
On June 30 the Board granted this corporation a loan of $15,000,000 to
enable it, with funds to be borrowed from other sources, to undertake stabilization operations in cotton. Discussions of these operations must be deferred to a subsequent report.
At this point, however, it is pertinent to observe that practically all of
the conclusions outlined in the previous section, with respect to stabilization operations in wheat and like commodities, apply to cotton-stabilization
measures in substantially the same way. Indeed, in some respects, the
hazards and difficulties involved are greater in the case of cotton, because
exports constitute a much larger factor of our crop than is true in the case
of wheat.
In the next nine days after the announcement of June 5 was made, cotton
prices dropped about 2% cents a pound, to the lowest level reached during
the season up to that date. This occurred in spite of the Board's announcement, which leading trade observers regarded as indicating a broadly constructive step. The factors primarily responsible were very favorable
weather for the 1930 crop, acute weakness in the stock market, unfavorable
Indications of sales of cotton cloth, continued contraction in the consumption
of raw cotton, and increased pessimism in the trade concerning the supply
and demand outlook.
In the case of cotton, as with wheat, it was clear in the winter of 1929-30
that the successful outcome of stabilizing endeavors was dependent upon the
co-operation of cotton growers. Though the full extent of the depression
in the world cotton industry was not then foreseen, it was realized that the
carry-over would probably be increased and that subnormal consumption
would probably last for several months. Curtailment of production in the
face of restricted consumption was called for. It also appeared from records
of past crops that cotton growers, as a group, ordinarily receive a greater
total return from the production of 40,000,000 acres or less than they do
from a crop grown on 45,000,000 to 50,000,000 acres. It was further
ascertained that American cottons were meeting increasingly severe competition from foreign cottons by reason of the large proportion of extremely
short-staple cotton here and improvements in the staple of foreign cottons,
[VOL 131.
Loans from the Revolving Fund.
the use
Sections 7, 9, and 11 of the Agricultural Marketing Act govern
of the revolving fund. The loan operations of the Board for the year endof this
B
ing June 30 1930, are summarized in Tables 1 to 7 in Appendix
report.
to
There were received by the Board, from the date of its organization
June 30 1930, 206 formal applications from co-operative associations for
loans as well as two applications from stabilization corporations. Of the
206 applications received from co-operative associations, 132 were approved
by the board either in full or for some portion of the amount requested;
while 35 were denied because the management or the financial condition of
the applicant did not appear to warrant the loan or because the purpose for
which the loan was desired appeared unwise in the judgment of the board.
Twenty-one applications which were presented to the Board were subsequently withdrawn or prosecution thereof was dropped by the applicants.
On June 30 1930, there were 18 applications under investigation for consideration by the Board.
These figures include only those applications which were formally presented. In addition, the Board has received numerous letters of inquiry
concerning the possibility of obtaining loans from the revolving fund. In
a large proportion of such cases, correspondence immediately developed the
fact that the applicant was ineligible or that the purpose for which the
loan was desired was unauthorized under the terms of the Act. While correspondence of this nature has required much attention on the part of the
Board's staff, its volume is not indicated by the figures presented herewith.
The 206 applications presented by co-operative associations requested a
total of $226,528,506, in addition to which stabilization corporations requested $240,000,000—the Cotton Stabilization Corporation $160,000,000
and the Grain Stabilization Corporation $90,000,000. Loan commitments
to co-operative associations amounting to $165,146,555 and to stabilization
corporations amounting to $105,000,000—that is, $90,000,000 to the Grain
Stabilization Corporation and $15,000,000 to the Cotton Stabilization Corporation—were approved during the period under revievi. During this period
the Board denied applications from co-operative associations for loans to the
amount of $37,782,956, which includes applications denied in their
entirety and unapproved balances of applications, portions of which were
approved. Requests for loans which were withdrawn or dropped by the applicants amounted to $5,123,715. There were pending before the Board on
June 30 1930, applications from co-operative associations for loans totaling
$18,475,280. Action on applications representing $15,317,000 of this amount
was deferred pending receipt of supplementary applications for funds for
s.pecific purposes covered by the formal applications already in the Board's
hands. The applications actually in the process of in vestigation on June 30
1930, therefore amounted to only $3,158,280 in addition to the balance
of $135,000,000 of the application of the Cotton Stabilization Corporation.
The foregoing information with regard to applications has been classified
in Tables 1 and 2 according to the commodities to which the applications
relate. In Tables 3 and 4 the same information is classified by sections of
the Act under which the loans were requested. Loans to co-operative associations have been made only under section 7 of the Agricultural Marketing
Act. No loans have been granted under paragraph 3 of this section and
very few have been granted under paragraph 4. Loans under section 9 of
the Act include only those made to stabilization corporations.
The Board had approved up to June 30 1930, commitments in the total
sum of $270,146,555. Of this amount, commitments aggregating $27,487,079 were canceled and/or rescinded in whole or in part, thereby reducing
to $242,659,476 the net amount of commitments approved by the Board up
to June 30 1930. Of the latter total, the sum of $191,811,522 was advanced to the respective borrowers during the period covered by this report,
against which advances the principal sum of $43,195,328 was repaid during
the period in question. In accordance with the nature of the revolving fund,
these repayments are immediately available again for additional loans.
On June 30 1930, the total amount of advances outstanding aggregated
$148,616,194, while the amount remaining to be advanced against authorized commitments was $50,847,955. A detailed classification of these figures appears in Tables 5 and 6.
Section 8 (a) of the Agricultural Marketing Act which governs the rate
of interest to be charged by the Board on loans made by it, reads as follows:
Loans to any cooperative association or stabilization corporation and advances
for insurance purposes shall bear interest at a rate of interest per annum equal to
the lowest rate of yield (to the nearest Si of 1%) of any Government obligation
bearing a date of Issue subsequent to April 6 1917 (except postal-savings bonds),
and outstanding at the time the loan agreement N entered into or the advance is
made by the bsard, as certified by the Secretary of the Treasury to the board upon
Its request: Provided. That in no case shall the rate exceed 4% per annum on the
unpaid principal.
In accordance with the above provisions of the Act, the Secretary of the
Treasury advises the Board in writing of the rates of interest applicable to
the dates on which the Board approves commitments.
The rates charged by the Federal Farm Board on actual advances made
during the period covered by this report ranged from lgi% to 3%%, or
an approximate average of 2.9% per annum on the basis of the amounts
advanced during the period referred to.
As provided in the Act, all interest paid by borrowers on their indebtedness to the Federal Farm Board is deposited in the revolving fund. Up to
June 30 1930, the amount of interest collected on outstanding advances
aggregated $444,517.10. (Table 7.) In addition to the amount of interest
especially Indian.
educaactually collected the books of the Board reflected as of June 30 1930, the
The co-operation of the Department of Agriculture and the State
tional and extension agencies was obtained in presenting these facts strongly sum of $682,169.72, representing accrued interest.
to the attention of the cotton belt. By means of radio addresses, letters, and
Details are also given in the report of other phases of
other forms of publicity the Board itself sought to bring these facts home
to cotton planters, in the hope of obtaining a reduction from recent high the Board's work as well as several statistical tables relaacreages planted to cotton. It specifically recommended that southern tive to the loan operations of the Board.
farmers first provide enough acres for a reasonable supply of home-grown
food and feed before planting cotton, and further recommended that no land
should be planted to cotton which had not produced at least one-third of a Asks U. S. to Regulate Grain and Cotton Marts—Chairman
bale per acre on the average for the last five years. It believed that if
Legge of Federal Farm Board Would Have Exchange
these recommendations were generally carried out the possibility of mainRules Subject to Approval of Government—Comment
taining satisfactory prices for cotton in the future would be greatly enoperations
hanced. It would manifestly be impossible, through stabilization
on Wheat Price.
or in any other way, to maintain cotton prices at the level of the loan basis
An amendment to the regulations of Congress governused during the last year in the face of continued excessive production.
The Board has made every effort to correct the impression which has ing the exchanges dealing in agricultural commodities,
obtained in some quarters that it might attempt such an impossibility.
including cotton and wheat, to the end that exchanges
Only limited success attended these endeavors toward acreage reduction
would not be permitted to make their own rules and reguIn the 1930 planting season, and the failure of cotton producers to bring
about substantial curtailment in the cotton production of 1930 has con- lations was advocated before the House Appropriations
tributed heavily to defeat the purpose of the stabilization measures that Committee by Alexander Legge, chairman of the Federal
were undertaken in cotton. Much more extended and intensive efforts to
Farm Boar61, during the consideration of the board's resecure readjustments in cotton production, in the face of a carefully considquest for an appropriation of $150,000,000 from the
ered world outlook, are planned for the planting season of 1931.
DEC. 20 1930.]
FINANCIAL CHRONICLE
$500,000,000 revolving fund, hearings on the bill disclosed
on Dec. 18. This is made by the Washington correspondent of the New York "Journal of Commerce" who goes
on to say:
The only rules made by the exchanges would have to be approved by
the Secretary of Agriculture, or by some officer designated by the Government, under the proposal laid down by Mr. Legge, and the Secretary
of Agriculture would be given definite authority to enforce the rules after
they had been approved.
"Those exchange rules and regulations are all built up by the traders
themselves," Chairman Legge declared. "They are not in the interest
of either the producers or the consumers. They cannot be, and they can
change them every day at their will.
Wants Regulation Centralized
"Under the present legislation," he said, "there is not anybody I can
find that has any authority to effectively deal with such exchanges. For
instance, we have been talking about those people who are selling short
on wheat today and they are relying largely on going before a tribunal
in the grain exchange for an adjudication in the event it turns out to
be a bad move on their part. That extends down to private operators,
and there is no reason why it cannot be regulated.
"That is the present situation as we see it. You have within recent
times passed three laws dealing with this problem; one is the Warehouse
Act, one is the Grain Inspection Act and the third is the Grain Futures
Act; but the legislation that is operating today is under different bureaus,
not giving it the strength that it would have if it were consolidated in
one regulatory or governing body, or if all the powers for its enforcement
were in the hands of one administrative officer. There is one man who
deals with the futures trading problem, but that law has no teeth in it,
as I understand it. Publicity is about the only weapon it affords."
Representative Dickinson (Rep.), Iowa, who has a measure pending
before the Agriculture Committee of the House which he intends to reintroduce with some changes, he said, covering the suggestions of Mr.
Legge, pointed out to the chairman that there is a provision in the law
that the license of a trader may be canceled for violation of the rules.
Chairman Legge said that the law provides that it can only be done
upon the point recommendation of the Attorney-General, the Secretary of
Agriculture and the Secretary of Commerce, and "if my memory serves
me right that is something that is hard to obtain sometimes."
Sees Stabilization Effective
According to Mr. Legge, the Grain Stabilization Corporation has about
65,000,000 bushels of actual cash wheat in elevators and storage, and
about 60,000,000 bushels under futures contracts. He said, however, that
the board has come to no conclusion as to what will be done with it, although a portion of the wheat is going to be required in the domestic
trade before the new crop comes in.
The Grain Stabilization Corporation has proven effective in stabilizing
the price of wheat, Mr. Legge asserted, and said that he had received
letters from some of the most conservative millers and some of the largest
buyers of grain in the country saying that except for these purchases
wheat would be 25c per bushel throughout the country today.
Loans outstanding, which have been advancd by the Farm Board
for
the stabilization of the cotton and wheat markets aggregate
$86,000,000
and $77,000,000, respectively, the chairman told the committee.
Under present world conditions, according to Mr. Legge, the
Federal
Farm Board cannot bring back the price of wheat again to what is a
fair price, "but we can prevent it going lower and make some
substantial
improvement."
At a conference with newspaper men today Chairman Legge said that
the Government could do nothing to aid the millers of the Southwest
and other interior points who may be crowded out of the export markets
because the price of wheat in this country is out of line with the rest
of the world.
With wheat selling at Chicago, as a result of the grain stabilization
operation, at a higher price than at Liverpool and Winnipeg, the interior
miller has been placed at a great disadvantage in the export markets.
Legge said the millers at Buffalo and other border points who have the
advantage of "milling in bond" provision of the tariff law were not complaining.
"If we do anything for the interior miller," Legge explained, "it
probably would be considered a subsidy by the other flour exporting
countries."
Cotton Market Hit by Bank Failures, Slump, Says Chairman Legge of Federal Farm Board—Co-operatives
"Squeezed" on Drafts, Confidence Impaired, He Finds
—Sees Wheat Production on Domestic Basis Soon—
Believes Bottom Has Been Reached on Cotton Prices.
The cotton market has suffered the worst effects of the
depression, with prices about having touched bottom,
Alexander Legge, Chairman of the Federal Farm Board,
declared on Dec. 15, it was indicated in a Washington dispatch on that date to the New York "Journal of Commerce." This we quote further as follows:
Prices may go a little lower, although the big shock is over, according
to Legge. Bank failures, he pointed out, have had an unfavorable influence on the cotton market, adding that as a consequence of the failures
confidence has been impaired.
"Prices on cotton are ridiculously low at the present time," Mr. Legge
said.
Co-operatives were said to be feeling the effect of bank failures by
"getting squeezed" by having their drafts protested, following bank
failures.
Sees Reduced Crops
At the same time Mr. Legge predicted that wheat production would
be on a domestic basis within two to five years. This was based in part
on his belief that the feeding of wheat to live stock, undertaken during
the present period of low wheat prices and reduced feed crop resulting
from the drouth, would be continued by American farmers, and his expectation of another decrease of 5% for both spring and winter wheat
acreage next year, making a 10% reduction within two years. He said
that it would only require a 20% reduction to put wheat production on
a domestic basis.
3941
Concerning the Cotton Stabilization Corporation, the Chairman said
that he was unable to state when it expected to begin operations on the
1930 crop. He said that not much money is being loaned on the past
season's crop. There is little buying and only little movement here and
there to acquire storage facilities, he added.
The Chairman pointed out that the peak of this year's cotton movement
has passed, and deliveries have slowed up considerably. Out of the
14,200,000-bale crop between 12,000,000 and 13,000,000 have been ginned
and baled. Purchases, according to Legge, are very slight at present, not
only in this country but throughout the world. Textile mill activity, while
somewhat improved at present, is still very low, the chairman observed.
Ample storage for cotton now exists. There are reports of drastic curtailment in production of cotton in Egypt.
Supply of Wheat Reduced
"Quite a substantial reduction in the visible supply of wheat was
secured last month," Mr. Legge said. "That was the first month in which
a reduction has been obtained since August, 1926. Until last month
there was not a single month for the past five years when the visible
supply of wheat did not show more than for the same month the preceding year. If anything comparable to existing conditions continue, we
will have American wheat producers upon a domestic basis in less than
five years. We have not so much further to go now.
"One good thing that has resulted from the agricultural depression
caused by the drouth and low prices has been the feeding of wheat to
live stock."
He predicted that the increased consumption due to this may result
in bringing the surplus down within less than five years. Feeding of
260,000,000 bushels of wheat a year would take care of the annual surplus
reduction without the necessity of acreage reduction, he added. He
emphasized that it was the ultimate objective of the Farm Board to get
production on a domestic basis.
Speaking of the Wheat Stabilization Corporation, Mr. Legge said that
recent buying has been more in futures than in spot. This he attributed
to the spread in spot and futures delivery prices being less than the cost
to carry the wheat in storage. The spread between cash and spot prices
usually reflects the storage charges, he said. Asked if this would not
hurt those sellers that had to make these futures deliveries, he said that
there was a likelihood that it would.
The Stabilization Corporation, according to the Chairman, had enough
wheat in futures scheduled for delivery this month to "embarrass" the
market if it had called for all of its deliveries. He said that the resultant rise hi price would have been only temporary and that it was not
what the Farm Board wanted.
Chairman Legge of Federal Farm Board Sees OverPrediction Worse Than Over-Production.
Chairman Legge of the Federal Farm Board in citing
recent bank failures as probable explanation for the decline in the price of cotton, was quoted as follows in the
"Wall Street Journal" of Dec. 16 as follows:
"We are not suffering so much from over-production as over-prediction,
and I am not making any predictions today," said Legge. He said that
cotton has done its worst. People are not buying cotton the world over,
he said.
Intermediate credit banks will get in no difficulty, in his opinion.
Their loans are rediscounts for local banks and the latter are responsible.
Legge said he did not think that very much new money had been loaned
on cotton lately. Local banks have just gotten someone to help them
carry the burden.
He would make no statement as to possibility of resuming cotton stabilization. The peak of the movement of cotton has been passed. Somewhere between 12 and 13 million bales have been ginned out of a crop
of about 14,200,000 bales.
In case the Cotton Stabilization Corp. should purchase cotton there
would be ample storage facilities, so that would not be a factor militating
against it. Legge also said that Egyptian producers have set about to
reduce drastically their production.
Why Farm Board Pegged Wheat—Saw Prospect of 50-Cent
or Lower Prices, According to C. C. Teague.
The Federal Farm Board saw a prospect of wheat
falling to 50 cents or lower in Chicago when it decided to
undertake the current stabilization operation in that cereal, according to C. C. Teague, member of the Board.
Thus quoting him, a Washington account to the "Wall
Street Journal" of Dec. 16, continued:
"A drop to 50 cents a bushel or lower in Chicago was apparently
within the bounds of possibility. Even if this decline had occurred, there
was no prospect that it would lead to substantial increases in export.
Moreover, so great a decline on the heels of earlier declines would have
intensified the disasters of the season, not only for wheat farmers, but
for growers of feed grains as well, and not only for farmers directly,
but for banks and merchants throughout the agricultural states," said
Teague.
Teaglie's statement is a hitherto little published portion of an oral
insert he made to a prepared speech before the American Farm Bureau
Federation. The oral addition to the speech was just made public by,
the board and may be taken as an official explanation of the board's
policy with reference to the 1930 stabilization.
"The emergency seemed much greater than at any other time since
the board began operations," Teague declared. "Chances for success
for stabilization measures designed to check price declines appeared much
greater than they did much earlier in the season."
World Situation Clear
Teague cited a number of points taken into consideration by the board,
as follows:
"1. The picture of the world wheat situation for the current year as
a whole was far more clear in mid-November than it had been during
the earlier months of the season, and than it was in October, 1929, when
the steps that led up to last year's stabilization measures were taken.
"2. Broadly speaking, this picture in mid-November showed an unusually wide margin between exportable surpluses in exporting countries
3942
FINANCIAL CHRONICLE
FoL. 131.
Wheat Receipts at Law Level
conservatively estimated, and import requirements of importing countries
"4. Wheat receipts had already declined to low levels, and mills were
liberally estimated. Because of favorable developments in Australia,
Canada,
obtaining satisfactory supplies owing to heavy
in
difficulty
in
in
reporting
prospects
Argentina,
good
a
of
fairly
good crop
assurance
the financial weakness of the Canadian pool, heavy exports from Russia feeding of wheat. The visible supply had declined since late in Septemand tightening restrictions in European countries, the price position and ber. The possibilities of acute congestion which presumably would have
outlook in world markets were weaker than in earlier months, and a been greatly accentuated if stabilization purchases had been initiated in
June to September were materially lessened.
fresh plunge of world prices was under way.
"5. Wheat prices in this country were already on a level at which
"3. The picture of the situation in the United States was also far
clearer than it was in July, and also very different. The outstanding imports over the tariff duty could not be expected to be substantial,
change was due to the drought which so heavily cut down the corn crop whereas if stabilization had been attempted at prices prevailing in June
and total feed supply. Evidence was accumulating that wheat was being to September, or operations had been undertaken to raise prices as was
used for feed on a hitherto unprecedented scale and that this movement vigorously urged, considerable importations of wheat and other cereals
could be expected to continue with wheat at prices around 70 to 75 cents over the tariff would probably have occurred before this time, and it
a bushel at Chicago. At these levels, our prices were already out of might have proved impossible to hold up wheat prices.
"6. The financial burden involved promised to be less now than if
line with world markets. Contrary to evidence in June and July and
more clearly than in August and October, it appeared that wheat used operations had been undertaken earlier. Moreover, with a new session
carryCongress about to begin, additions to the revolving fund might be
of
our
even
that
much
so
with
for feed might use up
reduced exports
over on July 1, 1931, would be reduced to moderate if not manageable expected if necessary; whereas such additions might have been impossible
to obtain earlier and the attempt might have failed for lack of resources."
proportions.
Indications of Business Activity
THE STATE OF TRADE—COMMERCIAL EPITOME.
Friday Night, December 19 1930.
Retail trade was better, especially early in the week, when
temperatures were unusually low. Since then the weather
has been milder in the East and this has not been without
some unfavorable effect. Still there has been a pretty good
retail trade under the stimulus of the usual buying on the eve
of the holidays. But if we consider the wholesale and jobbing trade and the big industries of the country the fact is
undeniable that trade is slow. The inventory period, of
course, is usually slow. It is noticeable too, that the
cheaper kinds of goods meet with the readiest safe at this
time when the buying power of the people has been reduced
by dullness of trade and unemployment. Expensive goods
have been for the most part quiet. Luxuries, indeed, and
novelties are difficult to sell. Colder weather recently
caused a larger demand for wearing apparel, mostly confined to the more serviceable goods. Iron and steel output is
below the usual total at this time of the year, but at the
same time it was said that orders for the first quarter have
• increased, and it is noticed that the production of rails and
tin plate is above the average at this time. Automobiles
were in better demand in November and early in December,
but the sale has fallen off somewhat of late and the Ford
works are understood to have reduced production very
noticeably for the time being for the purpose of taking inventory. The col trade was helped for a time by colder
weather, especially in the domestic sizes, and prices at the
West were steadier. But of late the milder weather in this
section has hurt the trade to some extent. New, and historically low prices for silver have occurred in London and
they continue to injure the trade in Lancashire's cotton
goods in the Far East. It is believed that the great fall in
silver since 1926 has had world-wide repercussions, lowering
the buying power of the vast population of the Orient and
so hurt the trade of the Western nations of the globe. Chicago
has reported eggs selling at the lowest prices in fifty years.
The manufacturing furniture trade is slow. The business in
auto bodies and tires has also been quiet.
Wheat has shown little net change in Chicago because
prices have been largely stabilized by buying by the Farm
Board. Still they have declined to some extent, reaching
indeed the lowest prices in a generation. At Winnipeg wheat
has reached new low levels. The crops of South America are
now moving to market and export trade in this country and
Canada is very dull. The crop of spring and winter wheat
in the United States is officially estimated at 850,000,000
bushels or about 40,000,000 larger than the last crop. Corn
has declined with a larger movement of the crop to market,
and there is some criticism of present prices for corn on the
ground that they seem too high by comparison with those for
rye, barley and other substitutes for feeding. The crop is
estimated by the Government at 2,031,000,000 bushels or
63,000,000 less than in November and nearly 600,000,000 less
than the crop of last year. On the other hand Argentine
corn is relatively cheap, and the Eastern States can import
it, despite the duty. Yet the consumption of corn is very
large in this country averaging for several years past nearly
3,000,000,000 bushels. Rye has declined slightly. It has
paid comparatively little attention to the decline in wheat as
the feeding consumption is large and the liquidation moderate, which has been readily taken. Oats declined 1 Y to
2 cents under further liquidation. The crop is officially
estimated at 1,402,000,000 bushels or 175,000,000 bushels
larger than the previous one. But on the whole the excellent
consumption of oats has protected it from any material decline in prices. Lard has advanced sharply on December,
and later deliveries have also advanced though on a much
smaller scale. A rise is rather surprising considering the large
movement of hogs to terminal markets. But stocks of lard
are not considered excessive and any revival of export
business would no doubt have a very noticeable effect.
Sugar declined 8 to 11 points owing to the withdrawal of
the German delegates from the conference at Brussels looking
to measures designed to bring about stabilization of prices.
What is needed is smaller crops of sugar the world over and
not artificially attempts to regulate prices Coffee has been
irregular, Rio advancing 8 to 13 points on December and
March, while Santos has declined a dozen points on the December delivery, later month's being comparatively steady.
The vagaries of Brazilian exchange keep the coffee market
in an unsettled condition here. Actual coffee has been dull
and lower. Brazil seems to be more or less anxious to sell,
but both trade and speculation here have been slow. A
further moratorium of 60 days has been decreed in Brazil and
some restrictions are being placed on foreign exchange operations. Unless the production of coffee can be more closely
adapted to consumption attempts to regulate prices by
governmental or other measures seem about as promising as
attempts to square the circle. Rubber has declined about
a cent under the weight of further selling and continued
dullness of trade. Supplies are large and consumption lags
well behind them.
Cotton declined about Mc. under the effects of liquidation,
a decline in'Egyptian cotton, dullness of cotton goods at
home and abroad, a lower stock market at times, and the
lowest prices for silver on record which tends to reduce the
trade at Lancashire. Hides have declined 10 to 15 points.
Silk advanced 2 to 4 points and cocoa 6 to 11. Lumber and
textile plants have been reducing operations.
As regards the general condition of trade, opinions are
persistent that it has seen its worst, that the situation is much
better than it was a year ago, that prices are lower than then
and in a word that the foundations are being laid for a gradual
but reasonably certain revival of business, in 1931, although
nothing spectacular is expected or desired.
The stock market at one time was down in numerous
cases to new lows for the year, but latterly the tone has been
better. Trading has been larger with sales on the 17th inst.
above 5,000,000 shares with some stocks rallying 5 to 10
points. United States Steel gained 4 points on a day when
cotton advanced 40 points. On the 18th inst. came a moderate reaction after a further advance. Fair sized advances
took place in Eastman Kodak, Consolidated Gas, Worthington Pump, United States, Industrial Alcohol, Air Reduction, New York Central and Allied Chemical. This
ended the day with fair-sized gains in spite of pressure
in the later trading. Call money was back to 2%. London
and Paris were higher if Berlin became irregular after opening
firm. All three markets were encouraged by a better tone
in New York. The most conspicuous advances here were
J. I. Case 6%, Auburn Auto 13, Air Reduction 33% to 13;
Lackawanna 334; U.S. Industrial Alcohol,4%;Worthington
Pump 3% and Eastman Kodak 23. All this was in welcome
contrast with a decline on the 16th inst. with numerous
losses of 4 to 6 points and even more, with silver down to
a new low in history dropping as much as Vid. in London.
The great decline in silver may account in some degree for
Dnc. 20 19501
FINANCIAL CHRONICLE
3943
the world stagnation in trade it is suggested, as':it has in 35 years. Heavy rains and cyclones swept over Northern
disastrously affected the buying power of nearly a billion Algeria after seven months of drouth.
people in the Far East. In the last four years the decline in
silver has been very great. It is attributed partly to the Col. Ayres of Cleveland Trust Company Says Some
imposition of the gold standard upon India. Certainly
Signs of Improvement in Present Depression Are
that cut off an immemorial demand for silver there. To-day
Appearing.
stocks advanced 2 to 10 points in many cases and bonds as
According to Col. Leonard P. Ayres, Vice-President of the
a rule were higher, German bonds being weak for an ex- Cleveland Trust Company of Cleveland, Ohio, "the most imception. The trading in stocks was in about 2,270,000 shares. pressive fact about this business depression
is that it is very
The leaders in the rise included New York Central, Santa
much more severe than Anyone expected it to be."
Fe, Baltimore & Ohio, Norfolk & Western, Union Pacific
Mr. Ayres in the company's business bulletin Dec. 15 goes
and Southern Railway.
on to my:
The Department of Agriculture in its final crop report for
It will take rank as one of the important major depressions of our entire
the season placed the value of the nation's 1930 crop at economic history. To the typical American business man it is not only
$6,274,824,000, a decline of $2,400,000,000, or more than unexpectedly severe; it is also profoundly disconcerting and disillusioning.
25% from last year. This decline in value was said to have It is hard for him to understand why we should have a serious business
depression. Our manufacturing plants have an unparalleled productive
been caused chiefly by the widespread decline in prices, but capacity. Our industrial workers are skilled and eager for employment.
was accentuated by the decrease in production that resulted Our stocks of raw materials are more than adequate. Our banks have imfrom drouth. Employment in manufacturing industries in mense resources. Our people are great consumers, as well as active proNovember decreased 2.7%, as compared with October, and ducers. But business depression is here.
He likewise observes:
payroll totals decreased 6.1% according to the monthly reAn International Depression.
port of the Bureau of Labor Statistics. Per capita earnings
To find an adequate explanation for the severity of this depression we
in manufacturing industries in November, 1930, were 3.5%
must look beyond our national boundaries, as well as within them. If we
lower than in October. The combined totals of the 15 in- do
so we shall be impressed by the fact that this depression is world-wide.
dustrial groups reporting showed a deeresae of 2.5% in In almost all countries there is stagnation of trade and industry. Everywhere commodity prices are falling, and in a number of countries the
employment and a decrease of 5.1% in payroll totals.
were well under way before ours began. Bear markets for stocks
Fall River, Mass., reported that the local cloth market declines
are in progress wherever there are security exchanges. They are comparhas been quiet throughout the week with only small sales able in severity with our bear market, and almost all of them began before
through regular channels. At Lawrence, Mass., trade has 0111% did. In all countries there is political unrest. Clearly the economic
been slowing up in the finishing end of the Arlington Mills forces behind all this are both powerful and widely effective.
In his concluding comments Col. Ayres states:
within a week after several busy weeks. Employees of the
The Case for Recovery.
finishing department have been finishing work one hour early
An analysis of prospects by individual lines of productive industry does
daily and some have been out one day this week. In Salem,
not lead to optimistic conclusions concerning 1931. Nevertheless the hisMass., the Pequot Mills will operate a small temporary night tory of a long series of previous major business depressions in this country
shift in the weaving department in order to provide employ- does justify us in believing that the general trend of business and indusment for all of their workers. At Charlotte, N. C., trade trial activity next year will be an advancing one. At no previous time
covered by our records has business activity in this country declined for so
was quiet all the week. Greensboro, N. C., wired that the long
a period, and reached such low levels as in this instance, and then
Proximity, White Oak and Revolution Mills will close for postponed a definite recovery for another year.
the old signs and symptoms of the bottom of business depression are
All
Christmas holidays next Friday, Dec. 19th, and will resume
here, and some evidences of approaching improvement in the situation are
operations on Monday, Dec. 29th.
beginning to appear. There is real basis for hope that stabilization of
The course of wholesale prices was downward in November wholesale prices is in the making both here and abroad, for while price
according to the index number computed by the Bureau of declines still appear in the monthly reports, they are becoming irregular
and small, rather than continuous and drastic. Moreover, the quotations
Labor Statistics. The index number which includes 550 on
the security exchanges have shown of late scene ability to stage rallies,
price quotation. weighed according to the importance of and to resist the pressure of continuous liquidation.
each article and based on prices in 1926 as 100, declined
Prospects for 1931.
from 82.6 in October to 80.4 in November, a decrease of
It now seems likely that business recovery will begin as a combination
over *4%. Tha purchasing power of the 1926 dollar was of many minor improvements, and that it will be accompanied by the
$1.244. Retail food prices in the United States as reported developments that normally occur in such a period. These should include
rising trends for short-term Interest rates, bond prices, and stock prices,
by the Bureau of Statistics showed a decrease of about 2% and
advances before the end of the year in wholesale prices, and industrial
on Nov. 15 as compared with Oct. 15 and a decrease of employment. Some increases over 1930 seem probable in building construction, iron and steel output, and the production of automobiles.
about 104% since Nov. 15 1929.
average levels for industrial wages, the cost of living, and the cost
The weather here is milder and rainy now, but it was very of The
building will probably be lower for 1931 than for 1930. Increases are
cold early in the week. On the 16th inst. it was down to probable in our export and import trade, the net profits of railroads and
9 degrees above zero at 7 a. m. and only 4 degrees above utilities, and, unfortunately, in the total numbers of business insolvencies.
Ths year 1931 will probably be a year of slow business recovery, with
the record for Dec. 16 made 54 years ago. It was very cold activity
not getting back to normal by the end of the year. There seems
in New England. The cold wave extended down to Texas. to be fair prospect, however, that it will be characterized by progressive
The ganadian Maritime Provinces and Newfoundland were improvements, instead of by recurrent declines.
It should not astonish us to find that when we are in a major business
covered with snow from a blizzard of the 15th inst., but the depression
the other countries are also, for a study of economic history will
Newfoundland fishing fleet was safe.. Boston had 4 to 22 show us that all of our major business depressions as far back as the records
degrees, Buffalo 8 to 26, Chicago 14 to 24, Cincinnati 12 to run were phases of international depressions, and that all of them were
accompanied by declines in commodity prices, and especially in the prices
26, Cleveland 18 to 28, Denver 12 to 42, Detroit 8 to 22, of
goods entering into international trade. It is easy to explain the
Kansas City 16 to 30, Los Angeles 52 to 72, Milwaukee depressions of 1914 and 1921 as being attributable to the war and its
14 to 24, St. Paul 10 to 30, Montreal 6 below to 20 above, multiple aftermaths, but it is important to note that our major depressions
Norfolk 22 to 30, Oklahoma City 28 to 30, Omaha 20 to 30, of the 90's, the 80's, the 70's, and so on back, roughly coincided in their
timing with major depressions abroad.
Philadelphia 16 to 28, Portland, Me., 4 to 22, Portland,
It is true that despite an immense amount of study and research devoted
Ore., 38 to 48, San Francisco 50 to 64, Seattle 40 to 46, to the problem over a long period of years we do not clearly know what
these great and irregularly spaced periods of bad business that we
causes
St. Louis 18 to 32, Winnipeg 2 to 26.
term depressions. We do know, however, that they follow periods of rapid
Here it was 16 degrees on the.15th inst. Boston had 20 to increase in production, accompanied
by waves of speculation, and by ex30 degrees, Montreal6 to 14,Philadelphia 28 to 38,Portland, pansions in the volume of credit. The innumerable component elements in
Me., 16 to 22, Chicago 26 to 36, Cincinnati 28 to 38, Cleve- these great waves of intensified business activity are inevitably highly
and they finally generate within the business structure a series
land 24 to 32, Detroit 18 to 32, Indianapolis 26 to 38, Louis- competitive,
of stresses and strains, of tensions and slacknesses, that bring the period
ville 34 to 40, Milwaukee 18 to 36, Kansas City 30 to 32, of prosperity to an end. Then there follows a slowing down of activity
St. Paul 14 to 30, St. Louis 32 to 36, Winnipeg 10 below to while readjustments are painfully effected, and debts that were hopefully
are slowly paid down.
2 above, Denver 18 to 30 above, Los Angeles 52 to 80, incurred
The world has been experiencing in the past few years a remarkable pePortland, Ore., 32 to 46, San Francisco 50 to 58, Seattle riod of productive expansion. The Economic Section of the
League of
42 to 52. To-day it was 33 to 45 degrees here. It is raining Nations reports that in the 17 years since 1913, just before the war, the
world
of
population
has
the
increased
10
per
cent,
while
production
of
a little to-night. Yesterday it was 33 to 48 here. Boston
foodstuffs and raw materials has expanded 25 per cent. In the
period
had 34 to 44 degrees, Montreal 20 to 26, Philadelphia 34 to our own industrial output has advanced over 60 per cent, whilesame
our popu50, Portland, Me.,26 to 44, Chicago 32, Cincinnati 32 to 36, lation has grown 25 per cent. Both here and abroad production has been
half
times
and
a
as
fast
two
increasing
815
population,
and
a
large part of
Detroit 32 to 34, Milwaukee 26 to 34, Kansas City 28 to 38,
this disparity has developed in the past few years. Through improvements
St. Paul 24 to 28, St. Louis 30 to 34, Winnipeg 12 to 26, In machinery and in management, in technique and transportation,
in meDenver 10 to 28, Los Angeles 48 to 70, Portland, Ore., 38 chanical power, and mass production, the output per man per day has been
augmented,
the
and
costs
per unit reduced.
to 42, San Francisco 46 to 58, Seattle 38 to 48. To-day greatlyrapidity increase
in production during the past few years has proof
The
there was a violent storm on the Mediterranean, the worst foundly altered long-established trade relationships
within rations, and bi-
tween nations. It has been accompanied by new nationalistic rivalries growing out of the war. It has taken place at a time when the monetary systems of many countries were being brought back to the gold basis with
consequent changes in price levels, and when immense international debt
payments were being put into effect. It has been going on at a time when
tariff barriers were being everywhere erected to foster home industry, and
to hamper imports.
We do not need to seek for one clearly defined cause of this depression. It
was spontaneously generated. It was inevitable that national industry and
International trade should ultimately be faced by the necessity of slowing
down until readjustments could take place in production, prices, payments,
and credits.
Price Controls.
There is a second, and almost independent reason, why there should be an
international business depression at this time, and it is to be found in the
nearly simultaneous collapse of a series of schemes for maintaining the
prices of commodities without rigidly restricting their production. When
the period of expansion was nearing the peak of the prosperity cycle there
were in existence immense surplus stocks of commodities that are important in international trade. They included rubber, sugar, coffee, copper,
silk, wool, wheat, and cotton.
In the cases of a majority of these commodities production had been
stimulated by the artificially supported prices until the supply greatly
exceeded the demand. This was an utterly abnormal condition, for during
periods of increasing prosperity there normally exists an apparent shortage
of goods. During depressions men always argue that overproduction was
the cause of the business collapse, but in reality production normally operates under forced draft to keep up with demand while prosperity is increasing, and then piles up surplusses when the declining phase of the business
cycle has developed. The breakdown comes in the ability to pay for the
goods rather than in the willingness to take and consume them.
This time the situation was different. While prosperity was still increasing there were accumulating huge stocks of artificially high priced
goods which were overhanging the international markets. Finally the price
controls all broke down almost simultaneously. Suddenly there developed
a situation in which the producers of raw materials could not sell their
goods to the manufacturers, and conversely the manufacturers could not sell
their finished products to the outlying markets. A serious decline in the
prices of international goods in 1929 was inevitable, and one does not have
to seek its explanation in subtle causes such as a deficiency in the production of new gold.
Credit Stringency.
There is a third reason for the present international depression. It is to
be found in the credit stringency which prevailed throughout the world In
1928 and 1929. In those years we were staging in our security markets
one of the really great speculative eras of all history. There were bull
markets in progress on the stock exchanges of almost all countries, but our
bun market increased in vigor and expanded in volume until it lifted security prices to absurdly inflated figures, and misled the business judgment of
the nation into wholly erroneous notions about the relationships between
efforts and rewards.
As the wave of speculative enthusiasm mounted higher and higher it
developed an insatiable demand for credit. We stopped lending to foreign
countries, and began to borrow from them. Finally there developed an
almost universal credit stringency so serious that nearly all the central
banks of the world were compelled to lift their rediscount rates to crisis
levels in order to check the expansion of credit. This seriously hindered
international trade and international lending, but it could not with equal
promptness restrain production, especially in agriculture.
It is probably true that the credit stringency of 1928 and 1929 caused a
series of maladjustments in international trade sufficiently grave to account for the depression of 1930. All great waves of speculation have been
followed by depressions, and the speculative era that is just behind us was
of unprecedented magnitude.
Three Causes.
The reasons that have been suggested to account for the international
depression of 1930 are not alternative explanations. They are descriptions
of three different sets of economic maladjustments, any one of which would
have been adequate to bring about a depression in 1930, but which were
in reality all simultaneously co-operative in bringing the period of prosperity to an end. One was the international race to increase production
and capture markets. The second was the breaking down of the price control schemes, which seriously contributed to the collapse of commodity
values. The third was the period of acute credit stringency.
All three of them were inter-related, and each one of them had effects
of varying importance in different countries. Industry and agriculture depend upon trade, and the multiple currents of trade are inter-related and
mutually dependent. They obey no central directing force, except the blind
law of price, and this year the old relationships between the prices of raw
materials, and finished products, and services, and credit, have been seriously disrupted and now new relationships are being slowly worked out.
A Slow Recovery.
It is already clear that we are not warranted in expecting a rapid recovery from this depression. During the closing months of last year and the
early months of this one we went through most of the phases of a normal
minor reaction, even including the early symptoms of recovery. Beginning
with last summer we have been experiencing a major depression, and business has not yet developed trustworthy evidences of improvement. It
seems probable that the duration of the depression will be extended to indude what might be termed the normal span of a minor depression plus the
normal span of a major one.
One reason for the exceptional length of the depression in this country
seems to be that the normal purchasing power of an important part of our
population is still seriously restricted by the paying down of debts incurred
In unsuccessful stock speculation. During this year we have staged a new
bull market of greater magnitude than most of the bull markets that preceded the great one which terminated a little over a year ago, and another
bear market more severe than most earlier ones.
Brokers' loans have shrunk from the high point of 1929 by something
transmore than six billions of dollars. Some of that great debt has been
ferred to banks, but a large part of it has been paid off by unsuccessful
by
speculators, and another large part is in process of being paid off week
week, and month by month. It is always true that a stock market loser
true
especially
Is a reluctant and economical purchaser of goods, and this is
this time when the staggering losses of last .year have been increased by
the serious ones of this, and when the few who got out successfully in 1929
have largely been recruited into the army of the speculatively defeated
in 1930.
[Vou 181.
FINANCIAL CHRONICLE
3944
The Department of Commerce's Weekly Statement of
Business Conditions in the United States.
According to the Department of Commerce for the week
ended Dec. 13 1930 bank debits showed declines from both
the preceding week and the corresponding period in 1929.
Total loans and discounts of Federal Reserve member banks
remained at fractionally the same level as for the three
preceding weeks. In comparison with the same period in
1929, however, a decline occurred. Interest rates for time
money were lower than a week ago while call rates showed
no change. Both rates were lower tha.a year ago. Prices
for representative stocks and bonds declined from both
comparative periods. The ratio of total Federal reserves
to deposit and Federal Reserve note liabilities combined,
while declining slightly from a week ago, was considerably
higher than in 1929. Business failures as reported by
R. G. Dun & Co. were less numerous than during the
preceding week.
Wholesale prices as measured by the composite index
showed but a fractional decline from the preceding week.
The price of wheat at Kansas City increased over the preceding period, while middling cotton at New York declined.
Both prices were under their 1929 levels.
The receipts of wheat at important centres were greater
than the preceding week while cotton receipts declined.
Both movements were lower than a year ago.
For the week ended Dec.6 1930 increases over the previous
period occurred in freight car loadings, lumber and bituminous coal production, in the value of building contracts
awarded in 37 States and in the receipts of cattle and hogs
at important centres. Declines from the preceding week
were evident in the production of steel ingots and petroleum.
WEEKLY BUSINESS INDICATORS.
(Weeks Ended Saturday. Average 1923-2100.)
1930.
1929.
1923.
Dec. Dec. Nov. Nov. Dec. Dec.
7.
14.
13. 6. 29. 22.
Dec. bee.
15. 8.
84.2 84.2
119.0 *122.5
125.9 126.3
96.3.97.3
-- -- 99.8
105.3 107.9
113.2 115.0
122.3 121.0
100.6 102.7
-- -- -- --
69.6 135.3
88.2 60.3
177.3 163.5
88.8 93.7
111.4 118.6
101.8 106.0
112.2 103.0
188.6 211.2
94.0 93.4
117.9 123.6
92.6 92.7
98.0 98.6
91.5 91.3
93.0 96.9
63.6 64.3
88.9 86.9
129.0 129.0
125.9 127.0
139.0 140.3
109.1 109.1
114.3 108.6
126.3 111.8
217.7 216.3
105.3 105.4
92.4 92.3
101.0 100.8
96.8 97.1
96.6 97.4
97.6 97.1
86.0 87.6
75.4 75.0
87.5 87.3
114.5 114.5
140.9 135.9
130.3 131.0
190.9 218.2
177.1 168.6
123.3 110.1
219.7 225.0
107.3 107.6
82.8 83.6
102.3 101.9
48.7 51.3 52.6
Steel Ingot production
Bituminous coal production
-- -- 98.8 *89.3 91.2
Petroleum produen (daily ana)- -- -- 107.0 108.8 109.8
82.1 73.2 81.3
Freight car loadings
a Lumber production
61.9 54.9 61.2
Building contracts. 37 States
72.7 50.9 78.4
(daily average)
59.5 39.9 40.4 80.3
Wheat receipts
139.2 158.5 195.8 198.5
Cotton receipts
98.4 69.0 83.9
Cattle receipts
Hog receipts
103.5 67.8 88.9
Wholesale prices:
Fisher's index (1926=100)
79.8 80.7 80.6 80.8
Total (120)
Agricultural products(30)-- 75.5 76.9 77.5 78.7
Non-agricul. products (90)-- 80.2 80.5 80.3 80.3
Wheat No.2 red, Kansas City_ 55.8 55.0 54.3 52.7
36.4 38.6 39.0 40.1
Cotton, middling
76.9 76.9 77.0 77.0
Iron and steel composite
- -- - 78.3 73.9
Copper, electrolytic price _ - 99.1 120.7
97.9 107.1
Bank debits outside N.Y. City-- --131.4 132.1 132.2 133.5
Bank loans and discounts
48.5 48.5
48.5
48.5
rates-Call
money
Interest
Time money
62.9 64.7 82.9 82.9
133.1 148.9 113.3 139.8
Busines. failures
152.5 162.2 164.0 166.0
Stock prices
104.6 106.0 106.5 108.7
Bond prices
102.2 103.0 105.0 105.7
Federal Reserve ratio
97.4 95.5 94.3 92.9
Money in circulation
b Composite Index79.3 79.8 78.2
New York -Times"
__ 77.1 80.3 80.8
_
Mains:. svp.k
92.7 93.1 __ __ .- -99.9 99.7 _______• Revised. a Relative to weekly average 1927-1929 Per week shown. • b Bela
tive to a computed normal taken as 100.
Depression Laid to Rise of Money-Prof. Warren of
Cornell University Absolves Overproduction of
Recession from Blame-Views on Wheat Situation.
The gradual return of money to its pre-war value rather
than overproduction was given as the primary cause of
present depressed conditions by Professor G. F. Warren of
Cornell University in a speech before the Farm Bureau Federation at Boston on Dec. 10. This is learned from Associated
Press accounts in which Prof. Warren is quoted as follows:
"The physical quantity of all kinds of products in the United States increased 61% in the fifteen years before the World War," Professor Warren
said, "and approximately this rate of increase has been going on for many
years.
The acres of cotton in the United States increased very rapidly since the
war owing to the fact that cotton has been relatively high In price, but the
acreage of food and feed crops decreased 1% from 1919 to 1929.
Yields Are Listed.
In the last ten years wheat has averaged 14.2 bushels an acre in the
United States. In the previous ten years, the average yield was 14.6 bushels
an acre. Corn yields have increased slightly and oat yields have declined
slightly.
For 1930, the Department of Agriculture estimates that the yield per
acre of the seventeen principal crops is 5% less than the ten year average.
Prices of food crops have declined from an index of 159 in August 1929.
to an index of 120 in October of this year."
Discussing the wheat situation Professor Warren said the purchasing
power of wheat Is lower than it has ever been since 1797, with the exception
of the year 1820, when the purchasing power of wheat in New York City.
that is. its price compared with other conunoditiee, was 49.
DEC. 20 1930.]
FINANCIAL CHRONICLE
Wheat Recovery Seen.
In all previous cases," he said,"the low wheat price was preceded by and
followed by the normal price. In the next ten years wheat will probably
have its normal relationship to commodity prices. Wheat is stable in
comparison with the prices of other commodities and promises to remain so.
"The relatively small amount of wheat that is coming out of Russia at
present has generally been taken to indicate that there was a flood of
wheat for sale or that the Russians were trying to make war on the other
countries. The real indication is that after many years
.of war and turmoil,
Russia is extremely short of machinery and that it rained in Russia this
year."
Professor Warren said that if wholesale prices of all commodities remained
stable, wages would rise at about the same rate that the output per worker
Increased.
"In the thirty-five years before the war," he said, "the production per
worker increased about 62% and the purchasing power of wages increased
57%."
Professor Warren expressed the opinion that the low production of
gold and the high demand for it would result in further declines in the general price level.
8%.
Continued Decline in Wholesale Prices in November.
The course of wholesale prices was downward in November,
according to the index number computed by the Bureau of
Labor Statistics of the United States Department of Labor.
This index number, which includes 550 price quotations
weighted according to the importance of each article and
based on prices in 1926 as 100.0, declined from 82.6 in
October to 80.4 in November, a decrease of over 23/270.
The purchasing power of the 1926 dollar was $1.244. The
Bureau's survey, issued Dec. 18, continues:
Farm products as a group decreased 4% from the October level, due
to lower prices for all grains, beef cows, calves, hogs, poultry, beans,
flaxseed, oranges, and potatoes. Beef steers, sheep and lambs, cotton,
eggs, alfalfa hay, and onions, on the other hand, averaged higher.
Foods were 3 Y,% lower than in October, with declines in butter, fresh
pork, dressed poultry, veal, coffee, flour, cornmeal, and most canned
vegetables. Raw and granulated sugar were somewhat higher than in
the month before. Practically no change in price was reported for fresh
beef,cured pork,cured fish,canned and dried fruits, and bakery products.
Hides and skins showed a further pronounced price drop, while leather
also declined. No change was reported for boots and shoes and other
leather products.
In the group of textile products there was a slight increase among cotton
goods. Silk and rayon, woolen and worsted goods, and other textile
products, on the contrary, were downward.
Anthracite and bituminous coal and coke showed no change in the
general price level, while petroleum products moved sharply downward,
resulting in a decrease for fuel and lighting materials as a whole.
Among metals and metal products there was a slight decrease in iron
and steel, also automobiles, while non-ferrous metals advanced.
Building materials showed little change, as lumber, brick, cement, and
certain paint materials declined slightly and other materials advanced.
Chemicals and drugs, including fertilizer materials and mixed fertilizers,
were somewhat cheaper than in October.
November
1929.
All commodities
94.4
Farm products
101.1
Grains
94.9
Livestock and poultry
93.7
Other tarn: products
108.1
Foods
98.8
milk
__ -Butter, cheese, and
103.7
Meats
102.5
Other foods
94.5
Hides and leather products_ --108.4
109.3
Hides and skins
113.3
Leather
106.1
Boots and shoes
106.1
Other leather products
91.5
Textile products
Cotton goods
98.1
77.0
Silk and rayon
Woolen and worsted goods-95.7
76.1
Other textile products
81.7
Fuel and lighting materials
91.2
Anthracite coal
Bituminous coal
92.0
84.4
Coke
92.4
Gas
Petroleum products
70.9
102.3
Metals and metal products
96.5
Iron and steel
102.4
Non-ferrous metals
Agricultural implements
' 96.1
Automobiles
108.0
Other metal products
98.6
Building materials
96.0
92.4
Lumber
Brick
90.5
86.6
Cement
Structural steel
97.0
Paint materials
97.8
105.4
Other building materials
Chemicals and drugs
94.0
Chemicals
100.0
Drugs and pharmaceuticals
70.6
Fertilizer materials
89.9
Mixed fertilizers
97.4
House-furnishing goods
97.1
Furniture
.96.7
Furnishings
97.4
Miscellaneous
80.1
Cattle feed
124.1
Paper and pulp
87.9
Rubber
34.5
Automobile tires
55.0
Other mbicellaneous
108.6
Raw materials
94.8
Semi-manufactured artioies._
95.6
94.2
Finished products
Non-agricultural commodities
92.6
All commodities less farm pro91.7
ducts and foods
October
1930.
November
1930.
82.6
82.6
72.1
82.4
86.3
88.6
98.7
96.7
79.8
96.5
83.6
96.7
100.3
104.2
73.8
81.6
52.1
83.6
59.0
75.1
89.6
89.2
83.9
99.7
59.4
90.4
88.6
67.8
94.9
100.2
98.4
85.8
80.2
32.5
91.7
81.7
75.9
97.3
86.0
89.6
66.8
83.6
92.9
95.3
96.5
94.2
68.8
89.6
83.5
16.9
52.0
91.5
80.0
75.5
85.6
82.8
81.5
W
Changes in Retail Prices of Foods by Cities.
During the month from October 15, 1930, to November 15, 1930, all
of the 51 cities from which prices are received showed a decrease in the
average cost of food as follows: Detroit and Washington, 4%; Atlanta,
Birmingham, Chicago, Houston. Little Rock, Los Angeles, Memphis,
Pittsburgh, Portland (Oreg.), Rochester, St. Louis, St. Paul, Salt Lake
City, and Savannah, 3%; Baltimore, Bridgeport, Buffalo, Butte, Charleston (S. C.), Cincinnati, Cleveland, Columbus, Denver, Indianapolis, Jacksonville, Kansas City, Louisville, Manchester, Milwaukee, Minneapolis,
Mobile, Newark, New Orleans, Peoria, Richmond, Scranton and Seattle,
2%; Boston, Fall River, New Haven, New York, Norfolk, Omaha, Philadelphia, Portland (Me.), Providence, San Francisco, and Springfield
(Ill.), 1%; and Dallas less than five-tenths of 1%.
For the year period November 15, 1929, to November 15, 1930, all
of the 51 cities, showed decreases: Portland (Oreg.), 16%; Butte and
Detroit, 15%; Los Angeles, 14%; Kansas City, Louisville, St. Louis,
Salt Lake City, and Seattle, 13%; Atlanta, Birmingham, Houston, Indianapolis, Little Rock, Memphis, Milwaukee, New Orleans, Peoria, Pittsburgh, Rochester, Savannah, and Scranton, 12%; Baltimore, Buffalo,
Chicago, Cleveland, Denver, Fall River, Manchester, Minneapolis, Norfolk, Omaha, Philadelphia, Providence, Richmond, and St. Paul, 11%;
Bridgeport, Charleston (S. C.), Cincinnati, Columbus, Dallas, Newark,
New Haven, New York, Portland (Me.), San Francisco, and Springfield
(Ill.), 10%; Boston, Jacksonville, and Washington, 9%; and Mobile,
Groups and Sub-Groups.
•vmo.r•vt-.000..eloielmocInoom.= ma l.t.comoto.optconoulo.cocriztoct..0
.."6.3.01..imq.‘voi.ppmcc.i*oicSmm4o;06146.
-MN..icvri•re4m.egad
.
4.—.4.7
d*47t,
N=WWW=MWWWWWWWWWWWwWWWW..Wwt-t-WW
During the month from October 15, 1930, to November 15, 1930, 35
articles on which monthly prices were secured decreased as follows:
Oranges, 24%; pork chops, 13%; navy beans, 10%; onions, 7%; potatoes,
cabbage, and prunes, 6%; butter, 5%; leg of lamb, hens, and canned
tomatoes, 4%; sirloin steak, round steak, and chuck roast, 3%; rib roast,
plate beef, sliced ham, oleomargarine, flour, cornmeal, rice and raisins,
2%; sliced bacon, cheese, lard, bread, macaroni, pork and beans, canned
corn, canned peas, tea and coffee, 1%; and vegetable lard substitute,
wheat cereal and bananas less than five-tenths of 1%. Three articles
increased: Strictly fresh eggs, 8%; sugar, 2%; and canned red salmon,
1%. The following 4 articles showed no change in the month: Fresh
milk, evaporated milk, rolled oats and corn flakes.
•
Rousefurnishing goods were practically unchanged in price, but with
a downward tendency.
In the group of miscellaneuos commodities cattle feed moved sharply
downward and crude rubber reacted upward from its recent low prices.
Automobile tires were lower than in the preceding month, while paper
and pulp were unchanged in price.
i• •
Raw materials as a whole averaged lower in November than in October,
as did also finished products. Semi-manufactured commodities, on the
other hand,showed advancing tendency.
In the large group of non-agricultural commodities, including all articles
other than farm products, and among all commodities other than farm
products and foods. November prices averaged lower than those of the
month before.
INDEX NUMBERS OF WHOLESALE PRICES BY GROUPS AND SUB
GROUPS OF COMMODITIES (1928=100.0).
We-wr-WWWWW00t.W...WWWWW
Decrease of 2 Per Cent in Retail Food Prices Oct. 15November 15
Retail food prices in the United States, as reported
to the Bureau of Labor Statistics of the United States
Department of Labor, showed a decrease of about 2%
on November 15, when compared with October 15, 1930,
and a decrease of about 11%% since November 15, 1929.
The bureau's weighted index numbers, with average
prices in 1913 as 100.0, were 159.7 for November 15, 1929,
144.4 for October 15, 1930, and 141.4 for November 15,
1930. The Bureau further reports:
3945
Purchasing
Power of
the Dollar
Nov. 1930.
51.244
1.261
1.563
1.287
1.171
1.167
1.041
1.09-I
1.276
1.064
1.332
1.072
0.997
0.960
1.364
1.221
1.972
1.202
1.727
1.393
1.116
1.122
1.192
1.876
1.109
1.133
1.462
1.054
1.002
1.020
1.168
1.248
1.222
1.098
1.224
1.344
1.022
1.174
1.121
1.008
1.218
1.098
1.050
1.036
1.064
1.475
1.205
1.198
5.376
1.949
1.125
1.302
1.323
1.195
1.236
1.248
•Data not yet available.
Trend of Employment in United States During November-Decrease of 2.5% in Employment and 5.1%
in Wages as Compared With October-Compilation
by U. S. Department of Labor.
The Bureau of Labor Statistics of the United States Department of Labor reports changes in employment and pay.
roll totals in November as compared with October, based on
returns from 41,525 establishments, in 15 major industrial
groups having in November 4,712,082 employees whose combined earnings in one week were $115,905,230.
The combined totals of these 15 industrial groups show a
decrease of 2.5% in employment and a decrease of 5.1% in
pay-roll totals. These changes, says the Bureau, represent
only the establishments reporting as the figures of the several groups are not weighted according to the relative importance of each group. According to the Bureau, increased
employment was shown in November in 2 of the 15 industrial groups: Bituminous coal mining gained 0.8% and retail
trade gained 3.0%.
Decreased employment was shown in November in 13 of
the 15 industrial groups: Manufacturing, 2.7%; anthracite
mining, 1.8%; metalliferous mining, 5.7%; quarrying, 7.5%;
crude petroleum producing,1.9%; telephone-telegraph, 1.6%;
power-light-water, 1.3%; electric railroads, 1.9%; wholesale
trade, 1.7%; hotels, 2.4%; canning, 41.3%; laundries, 1.8%;
dyeing and cleaning, 4.5%.
The Bureau's Survey, made available Dec. 15, continues:
Manufacturing Industries.
Employment in manufacturing industries in November decreased 2.7%,
as compared with October, and pay-roll totals decreased 6.1%. These
changes are bated upon returns made by 13,280 etsablishments in 54 of the
principal manufacturing industries of the United States. These establishments in November had 2,827,854 employees, whose combined earnings In
•
one week were $67,242,656. With one exception there has been a decrease
in employment in November in each of the last 8 years and while the
decrease in employment in November 1930, (2.7%) is greater than in years
previous to 1929 it is nevertheless smaller by nearly 1% than the decrease
a year ago (3.6%).
There were fewer employees in each of the 12 groups of industries in
Zgovember than in October, the notable decreases being 7.3% in the leather
.group, 4.2% in the lumber group, and 3.8% in the stone-clay-glass group;
'the smallest decrease was 0.3% in the paper group.
Twelve of the 54 separate manufacturing industries upon which the employment index is based reported more employees in November than in
October. Silk goods increased 4.5%, slaughtering and meat packing and
dyeing and finishing textiles increased 1.5%, and cotton goods increased
1.3%; the increases in the remaining 8 industries showing increased employment were less than 1% each.
Outstanding employment decreases in November, most of which were
largely seasonal, appeared in wagons, millinery, fertilizers, boots and shoes,
men's and women's clothing, cement, ice cream, and cast-iron pipe. The
iron and steel industry fell off 1.9%, automobiles 2.4%, rubber tires, 5.1%,
shipbuilding, 5.8%, petroleum refining, 4%, electrical goods, 2.8%, and
foundries and machine-shop products, 3.3%.
Among the 9 addiflonal industries surveyed, but not included in the
bureau's indexes, no data for the base year, 1926, being available, there
were increases in aircraft and beet sugar, and decreases in rayon, radio,
jewelry, paint and varnish, rubber goods, beverages, and cash registers.
Employment decreased in each of the 9 gm.s..iphic divisions in November, except in the Mountain division, where the beet sugar industry refining
season caused a gain in employment over October. The decreases ranged
from 4% in the West South Central division to 1.3% in the South Atlantic
division.
Per capita earnings in manufacturing industries in November 1930, were
3.5% lower than in October.
In November, 1930, 10,538 establishments reported an average of 76%
of a full normal force of employees who were working an average of 90%
of full time.
INDEX NUMBERS OF EMPLOYMENT AND PAYROLL TOTALS IN
MANUFACTURING INDUSTRIES.
(Monthly Average 1926=100.)
Employment.
Manufacturing Industries.
General index
Food and kindred products
Slaughtering and meat packing_
Confectionery
Ice cream
Flour
Baking
Sugar refining, cane
Textiles and their products
Cotton goods
Hosiery and knit goods
Silk goods
Woolen and worsted goods
Carpets and rugs
Dyeing and finishing textiles
Clothing,men's
Shirts and collsrs
Clothing, women's
Millinery and lace goods
Iron and steel and their product&
Iron and steel
Cast-Iron pipe
Structural ironwork
Foundry & machine-shop Prods
Hardware
Machine tools
Steam fittings
Stoves
Lumber and Its products
Lumber,sawmllls
Lumber, millwork
Furniture
Leather and its products
Leather
Boots and shoes
Paper and printing
Paper and pulp
Paper boxes
Printing, book and Job
Printing, newspapers
Chemicals and allied products_
Chemicals
Fertilizers
Petroleum refining
Stone. clay, and glass products
Cement
Brick, tile, and terra cone
Pottery
Glass
Metal products, other than iron
and steel
Stamped and enameled ware_ _ _
Brass, bronze, and copper prods
Tobacco products
Chewing and smoking tobacco
and snuff
Cigars and cigarettes
Vehicles for land transportation
Automobiles
Carriages and wagons
Car building and repairing
electric railroad
Car building and repairing,
steam railroad
Miscellaneous industries
Agricultural implements
Electrical machinery,apparatus
and supplies
Pianos and organs
Rubber boots and shoes
Automobile tires & inner tubes_
Shipbuilding
[VOL. 131.
FINANCIAL CHRONICLE
3946
Nov.
1929.
Oct.
1930.
.Nov.
1930.
Payroll Totals.
Nov.
1929.
Oct.
1930.
Nov.
1930.
94.8
78.6
76.5
95.1
72.7
68.3
101.4
101.8
106.1
82.3
103.5
102.5
90.8
95.8
93.8
102.6
96.7
93.6
108.3
100.8
90.1
94.3
101.1
85.2
96.6
92.3
74.1
103.8
101.2
88.8
132.0
78.5
92.6
86.3
83.8
74.5
99.9
93.5
94.2
93.3
103.7
96.0
104.1
104.0
111.2
100.9
103.0
88.6
102.4
86.0
77.9
78.5
95.3
96.6
94.5
94.1
95.3
84.1
97.1
96.1
87.3
80.1
74.5
87.0
79.8
74.1
742
91.4
77.0
78.1
96.9
83.1
77.6
78.3
65.1
87.7
78.2
73.7
86.0
62.9
73.9
64.0
61.8
58.9
72.8
82.2
83.2
82.0
96.0
87.0
91.5
95.6
108.2
89.3
94.5
80.6
86.2
70.8
74.1
61.9
81.8
76.4
93.3
95.5
92.5
77.9
93.8
94.6
88.0
78.7
75.4
87.4
83.4
71.7
71.6
92.8
70.9
77.1
88.8
74.8
65.4
76.8
60.3
84.7
75.6
72.2
81.2
63.0
71.2
61.3
68.8
57.7
70.0
76.2
80.1
75.2
95.7
84.9
90.9
95.9
109.2
86.4
93.5
73.6
82.7
68.1
68.4
58.6
82.1
74.7
102.7
104.4
105.4
83.7
105.4
104.3
90.5
92.6
89.6
111.2
95.5
89.8
106.7
96.5
78.3
94.3
98.1
78.3
97.2
92.3
72.7
105.4
102.5
88.8
137.4
76.5
87.4
87.4
85.6
72.3
101.1
81.1
94.9
77.2
108.5
98.8
112.2
106.8
116.4
104.4
107.8
87.4
104.1
84.8
77.6
74.6
93.8
99.4
95.9
97.6
93.3
83.8
99.4
97.0
89.0
73.7
66.8
86.3
75.9
67.7
60.9
86.9
60.0
68.2
94.0
74.4
68.5
70.3
62.5
83.5
67.3
61.2
71.9
56.2
65.0
59.3
57.5
54.7
66.0
67.4
79.3
64.0
97.7
82.9
95.2
96.3
110.5
90.3
92.8
77.5
90.1
65.1
72.2
54.4
72.1
72.7
94.0
98.9
87.6
78.6
93.6
95.1
87.1
69.0
66.8
85.5
78.4
63.6
57.9
88.1
50.7
65.4
76.1
61.2
62.1
63.5
55.3
75.9
60.9
58.9
63.7
53.7
57.0
53.8
52.2
51.5
58.6
53.3
74.6
47.2
97.3
80.0
92.9
97.0
111.6
86.5
91.0
69.6
85.1
59.8
60.4
48.2
72.7
69.5
-winter
Unweighted average declines from prices quoted in previous mid
"flyer" for principal merchandise groups are as follows: Silk goods 27.5%.
copper products 21.4%, cotton domestics 18.6%, wool goods 16%, automobile tires 14.5%, felt base rugs 12.5%, harness 12%, fabricated cotton
goods 11.5%, plumbing enamelware 9.3%, electrical appliances 9.2%.
furniture 5.9%, and iron and steel products 5.6%.
Reductions from year ago on a number of individual items in addition to
flat crepe silk follow: All-wool blankets 16.4%, copper boilers 21.4%.
barbed wire 6.1%, colored pongee 35.4%, wool flannel 12.6%,frock prints
20%,cretonne 19.3% satellite sateen 21%,sinks 10.1%.flashlights 13.3%.
men's underwear 17.7%. and oil stoves 12.2%.
Some prices in the catalogue are lowest in 10 to 20 years. Sheets, which
sold for 84 cents in 1917 and reached 31.98 in 1920, are again offered at 84
cents, while sheeting which was 32 cents a yard in 1917 and 79 cents in 1930
is now 30 cents a yard.
As compared with corresponding items in previous general catalogue,
prices quoted in mid-winter "flyer" show reductions which, on the whole.
are larger than the usual average sale reduction of approximately 10%.
Allstate tires (29x4.40), which were quoted at $5.65 in fall end winter
catalogue for 1930-31 are $4.98 in "flyer." a decrease of almost 12%. For
the first time Sears is offering tires in pairs at a reduction from individual
price. If size above mentioned is bought in pairs tires will cost $9.60 for
the two, or $4.80.
Another innovation in the "flyer," through which Sears Is making a drive
for 1,000,000 new customers, is the offering "for the first time in history"
of pre-shrunk work shirts.
Sale prices quoted in the book, which has 204 pages against 196 a year
ago, will be good during January and February only.
Of the 14 groups comprising the index. 10 declined and four remained
unchanged. The largest declines were noted in the groups of fats and oils,
metals, and grains, feeds and livestock.
Lard, butter, corn, oats, cattle, hogs, lambs, finished steel, copper.
cotton, wool, bituminous coal, gasoline, hides, coffee and cottonseed
Only nine
meal were included among the 42 commodities that declined.
apples, barley,
commodities advanced, including silk, raw sugar, dried
zinc and rubber.
"Annalist" Index of Business Activity.
The "Annalist" index of business activity for November
(preliminary) is 76.5, as compared with 79.4 (revised) for
October. In reporting this the "Annalist" says:
The November index is the lowest recorded since the depression of 1908.
All of the eight components of the index for which November data are
available except the adjusted index of automobile production declined from
October to November, and the rise in the automobile index was negligible.
The most important factor in the decline was a further decrease of much
the only
greater than the usual seasonal proportions in freight car loadings,
and in
mitigating circumstance being that in the last week of the month
the first week of December there was an upturn, allowing for seasonal
Further
variation, from the depths reached in the week ended Nov. 22.
production, pig iron
sharp decreases in the adjusted indexes of steel ingot
contributed
production
power
electric
production, zinc production and
minor decreases
heavily to the decrease shown by the combined index; and
and bituminous
occurred in the adjusted indexes of cotton consumption
coal production.
index and its comTable I gives for the last three months the combined
variation and long-time
ponents, each of which is adjusted for seasonal
has been revised
trend. The adjusted index of electric power production
seems to
back to March 1929 in order to give effect to a trend line which growth
be more closely in line with the reasonable probabilities of future
combined
of the electric light and power industry. Table II gives the
combined index
index by months back to the beginning of 1919. The
electric
the
of
revision
has not been affected prior to October 1930 by the
power index.
BY
ANNALIST INDEX OF BUSINESS ACTIVITY
TABLE
COMPONENT GROUPS.
Nov. 1930,
Oct. 1930.
Sept. 1930.
indicated
Roebuck & Co., now being mailed to customers,are
*Subject to revision.
"Wall
the
from
take
we
which
in the following from Chicago,
"Annalist" Index of Wholesale Commodity Prices.
Street Journal" of yesterday (Dec. 19):
largest selling
Fresh breaks in the stock market this week have been
Average decline from last year In cotton domestics, the
40.8% for
division, is 18.6%. Declines on individual items range up to
accompanied by lower prices of large numbers of com-
ci
National Fertilizer Association Finds Commodity Price
Index Declined Sharply During Last Week.
The wholesale price index of the National Fertilizer Association, consisting of 476 quotations, declined more than
one full point during the week ended Dec. 13. The index
number now stands at 79.7 compared with 80.8 for the preceding week and 95.0 for the corresponding week a year ago.
(The index number 100 represents the average for the three
years 1926 through 1928.) The Association adds:
78.2
68.1
60.6
69.8
64.4 , Fig iron production
66.9
91.1
61.1
73.3
73.9
93.4
56.8
85.8
69.2 • 66.4 , Steel ingot production
84.2
83.9
73.8
74.2
90.6
80.1
Freight car loadings
90.9
63.6
66.0
93.8
88.5
73.1
73.8
94.7
*87.1
Electric power production
84.4
81.3
82.5
99.6
85.0
89.1
90.0
98.2
84.9
Bituminous coal production
61.6
47.3
*48.1
Automobile production
72.2
81.0
79.7
84.3
72.8
87.5
88.4
88.2
72.0
Cotton consumption
83.3
81.3
82.8
89.3 101.4
80.5
90.2
99.5
____
Wool
consumption
59.0
61.1
89.4
98.8
66.4
68.4
85.9
Root and shoe production...80.9
86.1
55.9
56.8
82.0
83.2
69.5
71.2
85.7
i
Zinc production
46.5
55.1
83.0
44.0
52.9
76.4
82.4
79.4
*76.5
ins.:
Combines
82.2
82.3
94.5
84.0
84.8
92.7
BINED INDEX SINCE JANUARY 1919.
TABLE 60.5
63.9
95.5
62.5
64.7
..
85.7
76.9
81.3
107.9
84.1
86.9
1921. 1920. 1919.
108.9
1930. 1929, 1928. 1927. 1926. 1925. 1924. 1923. 1922.
57.2
57.5
71.2 111.1
70.7
111.2
111.3 103.4
January.. 96.0 105.5 98.0 102.2 102.3 102.4 104.0 108.1 87.1 82.4
87.0
91.7
91.8 123.8
94.4
122.3
82.2 111.3 97.9
42.5
February _ 94.4 106.1 99.7 104.7 103.2 102.9 105.0 108.1 91.1
43.8
66.5
48.8
50.1
66.8
114.9 96.9
81.6
94.5
111.0
62.3
March__ 91.3 104.3 99.4 106.9 104.7 102.6 102.8
64.2
75.9 103.0
75.7
99.1
82.5 108.8 98.9
April
51.5
95.1 108.8 99.9 104.4 103.7 103.4 99.8 114.2 89.2
59.2
72.5
66.4
69.9
82.2
110.0 100.2
85.3
93.4
115.0
92.4
101.4
101.6
May
90.1 110.1 101.3 104.8
110.9 110.6 104.2 114.1 106.1 104.7
85.1 113.6 103.0
June
89.1 108.9 98.7 103.4 103.2 98.5 86.9 111.8 98.7
111.6 110.9
July
86.3 109.9 100.5 101.5 102.8 101.1 86.8 110.8 97.4 83.6
110.5 108.3
August _ _ _ 83.1 108.1 102.1 101.8 105.0 100.7 89.8 107.5 96.1 85.2 106.2
108.6
86.5
September 82.4 107.3 102.4 100.9 107.1 100.8 95.7 105.8 98.1 88.8
100.0 104.2
101.4
103.7
Cut in Winter Prices by Sears, Roebuck & Co.
97.7
102.1
October
79.4 105.7 105.0 98.2 105.7
106.3
94.2
86.7
106.5
Sears, November *76.5 96.9 103.7 95.5 105.7 104.0 97.4 103.0
90.0 108.4
Prices quoted in the mid-winter "flyer" catalogue of
December_ --_- 92.1 102.0 93.7 105.0 105.8 101.5 100.8 108.8 86.3
flat crepe silk, a large selling Item.
•
4
DEC. 20 1930.]
FINANCIAL CHRONICLE
modities, many of them making new annual lows. In
consequence, the "Annalist" index of wholesale commodity
prices dropped to a new low for the year at 115.4, the lowest
since December 1915 and comparing with 117.7 of last week.
The "Annalist" adds:
3947
With the continued decline in commodity prices during
November, it is clear that those retail stores which do not
sell at a fixed price had to move more tonnage or units for
the same amount of money than they did last year. Merrill,
Lynch & Co. in their statement goes on to say:
The report of the Great Atlantic & Pacific Tea Co. showed that sales
for this year up to Dec. 6 had passed the billion-dollar mark, while it was
expected that the holiday trade would bring the total volume above 5%
over results for 1929. The most significant thing regarding this was that
the company moved 4.755,395 tons of merchandise, compared with 4,302,817 tons last year, an increase of 10.5%. There is no doubt that this
same performance was repeated in a great many of the standard grocery
chains.
Another feature which should be stressed is the fact that many chains
are not only selling more tonnage, but are selling to more customers. In
the case of McMarr Stores, which operates 1.385 stores in the Northwest,
12.444,881 customers were served in October of this year, as compared
with 11,995,260 customers in September. The average sale per customer
In October was 53 cents, while in September it was 57 cents. Nevertheless,
the increase of 449,621 customer sales is very important in analyzing the
trend of business. It simply means that chain store companies are increasing their customers.
Chain store executives are in a strategic position to judge trends in the
whole country, because of the widespread distribution of their stores.
Hence, the fact that they have increased their employees and have paid
larger wages in 1930 than in 1929, is also a sign of encouragement. For
Dec. 16 1930. Dec.9 1930. Dec. 17 1929. example,a check-up of 18 chain-store companies shows that In three quarters
of 1930 those companies had an average of 77,497 employees, against 71,456
136.6
Farm products
109.5
107.3
Food products
125.2
143.0
121.8
employees in the same period of 1929, an increase of 8.4%. Similarly
Textile products
*106.6
140.7
105.8
these 18 companies paid wages in the first three-quarters of 1930 amounting
Fuels
142.5
159.9
142.7
to $67,685,743, compared with $60,100,814 in the corresponding period
Metals
125.4
105.3
106.7
Building materials
151.7
of 1929. an increase of 12.6%.
128.8
127.8
Chemicals
134.0
12.5.8
*126.0
The month of December, which is, of course, normally the best month
Miscellaneous
124.2
89.6
95.4
in practically all of the chains, will undoubtedly show a large increase in
All nAmmnr111.1rol
lick
.11/7
Mil 1
sales over November results.
*Revised.
Month of November
-11 Months Ended Nov. 301929.
Deer.
1930.
1930.
1929.
Deer.
3
Slight Increase in Loading of Railroad Revenue Freight Grt Atl & Pee-- 79,820,446 83,713,860 4.6 980,949,625 940.654.424 x4.3
Sears, Roebuck_a32,243,424 a40,717,004 20.8 e351,308,974 e390.331,450 10.0
But Very Small, Nevertheless.
P.W.Woolworth 24,076,836 26,159,775 7.9 246,967,737 258.880,398 4.6
Loading of revenue freight for the week ended Dec. 6 Montgom Ward 22,401,426 29,851,303 24.9 243,647,441 255.731,305 4.7
With the exception of fuels, the declines were distributed throughout
all groups comprising the composite index. All grains except wheat
dropped sharply, corn falling 4 cents for the week. Wheat prices in the
United States are maintained artificially by activities of the Stabilization
Corporation, but on world markets wheat dropped to a new low for the
year. At Winnipeg wheat prices are now 22 cents below Chicago prices.
There was a sharp drop in all livestock prices, hogs at $8.04 going to a
new low for the year. Cotton, at 9.60 spot New York, is 55 points below
the previous low of the year and is the lowest since July 1920. Hides have
gone to a new low. Food products have dropped sharply; meats, butter,
sugar and fruits are lower.
Price cutting in the cotton industry continues. Print cloth has dropped
another M cent after a similar decline last week. Cotton sheetings
are firm, but all yarns are lower. In spite of excellent consumption for
silk for November and a record consumption looming up for December,
silk prices dropped back about 10 cents after advances during the preceding
week.
THE ANNALIST WEEKLY INDEX OF WHOLESALE COMMODITY PRICES
(1913=100)
totaled 787,173 cars, the Car Service Division of the American Railway Association announced Dec. 16. This was
an increase of 85,088 ears above the preceding week this
year, when loadings were reduced somewhat owing to the
observance of Thanksgiving Day, but a decrease of 146,136
cars below the same week last year. It also was a reduction
of 197,600 cars below the corresponding week in 1928.
Particulars are outlined as follows:
Miscellaneous freight loading for the week of Dec. 6 totaled 269,805
cars, 50,805 cars under the same week in 1929 and 84,019 cars under the
corresponding week in 1928.
Loading of merchandise less-than-carload-lot freight amounted to
223,072 cars, a decrease of 24,393 cars below the corresponding week
last year and 33,372 cars below the same week two years ago.
Coal loading amounted to 175,996 cars, a decrease of 35.787 cars below
the same week in 1929 and 23,095 cars under the same week two years ago.
Forest products loading amounted to 34,976 cars, 17,951 cars under
the corresponding week in 1929 and 28,153 cars under the same wok
two years ago.
Ore loading amounted to 6,064 cars, a reduction of 2.744 cars below the
same week in 1929 and 5,129 cars below the same week in 1928.
Coke loading amounted to 9,524 cars, a decrease of 2,923 cars below
the corresponding week last year and 1,182 cars under the same week
in 1928.
Grain and grain products loading for the week totaled 40,105 cars,
7,895 cars below the corresponding week in 1929 and 16,594 cars below
the same week in 1928. In the Western districts alone, grain and grain
products loaidng amounted to 27,891 cars, a decrease of 7,053 cars below
the same week in 1929.
Livestock loading totaled 27,631 cars. 3,638 cars under the same week
in 1929 and 6,056 cars under the corresponding week in 1928. In the
Western districts alone, livestock loading amounted to 21,449 cars, a
decrease of 2.763 cars compared with the same week last year.
All districts reported reductions in the total loading of all commdoities,
compared not only with the same week in 1929, but also with the same
week in 1928.
Loading of revenue freight in 1930 compared with the two previous
years follows;
1929.
1930.
1928.
3.349,424
3,571,455
Four weeks in January
3,448,895
3,505,962
3,766,136
Four weeks in February
3.590,742
4,414,05
4,815.937
Five weeks in March
4,752,559
3,619,293
3,989,142
Four weeks in April
3,740,307
4,598.555
5,182,402
Five weeks in May
4,939,828
3,719.447
4,291.881
Four weeks in June
3.989,442
3,555,731
4,160,078
Four weeks in July
3,944,041
4,670,368
5,600,706
Five weeks in August
5,348.407
3,725,243
4,542,289
Four weeks in September
4,470,541
4,679,411
3,817,786
Four weeks in October
4,703,882
4.127,134
4,890,154
Five weeks in November
5,144.208
787,173
933,309
Week ended Dec. 6
984,773
Total
43,890.741
50,422,900
49.057.625
November Sales of Fifty Chain Store Companies
10.58% Lower Than in Same Month in 1929.
The sales reported by 50 chain store companies for November 1930 amounted to $331,351,722, as compared with
$370,532,692 for November 1929, a decrease of 10.58%;
while for the 11 months sales reported were $3,662,576,857,
as compared with $3,683,381,559 in the corresponding
period of 1929, a decrease of only 0.56%, according to
statistics compiled by Merrill, Lynch & Co. of this city.
The improvement shown in October over September of
this year indicates that October results were purely seasonal.
320,037,434 622,179,106 9.6 241,681,283 259,741,281 6.9
KmgerGmcen
Baking Co
J C Penney-- 18,937,377 24,419,680 22.4 169,233,546 180.101,169 6.0
Safeway Stores_ 17,738,309 19,867,344 10.7 201,657,970 198,956,317 x1.3
85 Kresge Co__ 12,505.020 14,021,354 10.8 126,371,648 132.085.718 4.3
Amer Stores Co _ 611,132,261 b11,522,139 3.3 c129,482,650 c130,208,426 1.97
First Nat Stores d8,220,055 d8,608,595 4.5 g98,930,184 g88.860,499 x11.3
79,066,760
79,183,361 0.15
MacMarr Stores 7,047,763 8,063,30812.6
77.828.227
82,117,135 5.2
Nat Tea Co-- - 7,082,372 7,940.362 10.8
59,253,586
53,912,458 x9.9
W T Grant...-. 6,677,389 6,510,666 x2.5
57,222,519
56,214.949 1.8
S H Kress.--- 5,528,389 5,843,610 5.4
46,920.048
41,656,236 x12.6
Walgreen Co-- 4,080.096 4,250,968 4.0
36,440.578
37,413,031 2.6
McCrory Stores. 3,617,075 3,854,417 6.1
32,725,745
47,854,373 31.6
Nat BellasHess. 3,333,304 5.232,010 36.3
F & W Grand31,666,894
25,288,975 x25.2
Silver Storm_ 3,176,266 2,894,851 x9.7
25,667,141 x13.8
29,221,068
_ 2.806,223 2,352,115 x19.3
H C Bohack
33,495,475
30,587,759 13.5
Grand-Union__ 2,772,961 2,731,392 11.5
30,873,813 x1.42
31,313,202
Dan'l Reeves Inc 2,698.557 2,822,097 4.3
24,697,830
22,638,769 x9.1
J J Newberry- _ 2,606,653 2,608,650 -__
23,648,658
16,042,986 x47.2
Ochulte-Linited. 2,820,081 2,751,535 4.7
25,835,687
23,090,435 x11.8
Melville Shoe_ _ _ 2,507,537 2,204,666 113.7
22,046,755
22,631.349 2.5
Dominion Stores 2,343,978 2,410,864 2.7
21,473,613
15,719,003 x36.6
Lerner Stores... 2,096,836 1,805,142 116.1
20,110,923
19,393,487 x3.7
McLellan Storm 2,081,068 2,334,340 10.8
24,274,107
25,697,044 5.5
2,075,268 2,362,100 12.1
Childs Co
14,327,676
13,080,288 19.5
G C Murphy... 1,579,476 1,463,872 x7.9
12,402,796 x8.7
13,480,993
1,480,548 1,556,434 4.8
Nelsner Bros
15,623,754
17,979.411 13.1
G R Kinney __ _ _ 1,473,994 1,932.853 23.7
16,415,371
14,896,069 110.2
Diamond Shoe_ 1,406,616 1,393,050 x1.0
15,071,219
13,814.530 x8.1
1,402,920 1,403,356 _--Peoples Drug
15,776,397
14,210,890 111.0
Lane Bryant Inc 1,373,628 1,245,391 x10.3
14,492,118
14,626,638 0.9
Waldorf System 1,329,539 1,394,017 4.6
West Auto Supp
12,828,000
14,782,000 13.2
C) est.... 1,271,000 1,577,000 19.4
61,217,652 61,386.469 12.1 h14,255,072 h15,384,805 7.3
Jewel Tea
910,699 x15.4
1,051,329
8,588,930
6,958,446 123.4
N Strauss Inc
998,349 13.9
8,144,660
8,547,071 4.7
859,988
Am Dept Stores_
8,757,290
7,900,128 x10.8
821,046
852,712 3.7
Co
Schiff
968,237 25.2
7,459,691
724,192
8,277.248 9.8
Metro Chain Sts
4,042,071
528,417 4.8
4,214,159 4.1
503,049
Kline Bros
554,071 17.6
3,460.640
3.755.984 7.8
456,438
Exchange Buffet
4,250,517
3,335,376 x27.4
444,850
325,180 x36.8
Edison Bros.Winn & Lovett
4,942,026
5,620,836 12.0
411,579
509,682 19.2
Grocery
3,477,653 121.2
351,044
461,239 23.8
4,215,561
Sally Frocks
3,645,644 11.7
333,964 14.0
3,707,607
286,566
Nat Shirt Shops
1,654,157
1,367,111 x21.0
207,939 111.3
231,372
Kaybee Storm._
220,902 6.4
1,852,669
1,641,868 x12.8
206,690
14.4 H Fishman._
275,606 25.3
1,759,705
1,929.317 8.7
205,822
Morison El supp
Totals
331,351,722 370,532,692 10.5 3,662,576,857 3,683,381,559 0.58
a Nov. 6 to Dec. 3. b 4 weeks ended Nov. 29. c 44 weeks ended Nov. 29.
d4 weeks ended Nov. 22. e Jan. 2 to Dec. 3. f47 weeks and 4 days ended
Nov. 29. g 32 weeks ended Nov. 22. h 48 weeks ended Nov. 29. x Increase.
Country's Foreign Trade in November-Imports and
Exports.
The Bureau of Statistics of the Department of Commerce
at Washington on Dec. 16 issued its statementon the foreign
trade of the United States for November and the 11 months
ended with November. The value of merchandise exported
in November 1930 was $289,000,000,as compared with $442,254,000 in November 1929. The imports of merchandise
are provisionally computed at $204,700,000 in November
the present year, as against $338,472,000 in November the
previous year, leaving a favorable balance in the merchandise movement for the month of November 1930 of $84,300,000. Last year in November there was a favorable trade
balance on the merchandise movement of $103,732,000.
Imports for the 11 months of 1930 have been $2,853,336,000,
as against $4,089,552,000 for the corresponding 11 months
of 1929. The merchandise exports for the 11 months of
1930 have been $3,568,473,000, against $4,814,444,000,
giving a favorable trade balance of $715,137,000 in 1930,
against a favorable trade balance of $724,892,000 in 1929.
3948
FINANCIAL CHRONICLE
Gold imports totaled $40,159,000 in November, against
$7,123,000 in the corresponding month of the previous year
and for the 11 months were $363,275,000, as against $283,528,000. Gold exports in November were $5,008,000,
against $30,289,000 in November 1929. For the 11 months
in 1930 the exports of the metal foot up $115,931,000,
against but $44,036,000 in the 11 months of 1929. Silver
imports for the 11 months of 1930 have been $40,091,000,
as against $59,461,000 in 1929, and silver exports $50,684,000, as against $77,038,000. Following is the complete
official report:
[VoL. 131.
lower than a year ago, according to indexes of the Philadelphia Federal Reserve Bank prepared from reports of about
840 manufacturers employing over 290 thousand workers
with a weekly payroll of almost $6,750,000. The drop in
employment between October and November amounted
to 2% and in payrolls 7%. This decline was partly seasonal, but also was due in part to unsatisfactory business
conditions, says the Bank in its survey under date of Dec. 15,
which continues:
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Since the fall peak of last year the decline in the number of factory workers, wage earners, and working time has been almost continuous, so that in
November manufacturing plants employed 14% fewer workers than in the
TOTAL VALUES OF EXPORTS AND IMPORTS OF THE UNITED STATES
like month last year, and the total of persons on the pay roll was the lowest
(Preliminary figures for 1030 corrected to Dec. 15 1930.
Merchandise.
since the depresssion of 1921. Wage earnings and employe-hours worked
were about 28% less, reflecting largely part-time work.
November.
11 Months Ending Nov.
The employment index at 85.6 was about 14% below the 1923-25 average,
Increase(+)
and
the wage payments index at 75.4 was 25% lower.
Decrease(-)
1930.
1929.
1929.
1930.
The textile group was the only one that reported a larger number of work1.000
1,000
1.000
1.000
1,000
ers and volume of wage earnings in November than in October. This inDollars. Dollars.
Dollars.
Dollars.
Dollars.
crease has continued since late summer and has been due chiefly to seasonal
289,000 442,254 3,568,473 4,814,444 -1,245,971
Exports
Influences.
All the remaining groups showed decreases, although a few
204,700 338.472 2,853,336 4,089,552 -1,236,216
Imports
of the individual industries reported gains in employment and payrolls.
Excess of exports_ _
84,300 103,732
715,137
724,802
Compared with a year ago, all industrial groups and virtually all individExcess of Imports_ _ _ _
ual industries have curtailed their working forces and working time, so
that
wage disbursements were materially smaller than in November 1929.
EXPORTS AND IMPORTS OF MERCHANDISE, BY MONTHS.
A striking exception to this is found in the shipbuilding industry which in1925.
creased its employment by 13% and payrolls by 7% over November 1929.
1930.
1929.
1926.
1928.
1927.
A slight gain in employment over a year ago is also shown by the leather
1.000
1.000
1,000
1,000
1,000
1,000
industry.
tanning
ExportsDollars. Dollars. Dollars. Dollars. Dollars. Dollars.
Delaware factories showed a decline of nearly 7% in employment and 10%
January
410,838 488,023 410,778 419,402 396,836 446,443
February
348,835 441,751 371,448 372,438 352,90' 370.676 In wage payments from October to November. The number of hours worked
March
369,550 489,851 420,817 408,973 374,406 453,653 was also reduced by 10%. All industrial groups reported recessions except
April
331.732 425,264 363,928 415.374 387,974 398.255
concerns which had larger payrolls in November than in October.
May
320,048 385,013 422.557 393,140 356,699 370.945 lumber
June
294,659 393,186 388,661 356,966 338,033 323.348
EMPLOYMENT AND WAGES IN PENNSYLVANIA.
339.660
July
286,650 402,861 378.984 341,809 368,317
Compiled by the Federal Reserve Bank of Philadelphia and the Department of
August
297,768 380,564 379.008 374,751 384,449 379.823
Labor and Industry. Commonwealth of Pennsylvania.]
September
312,220 437,163 421,607 425,267 448,071 420,368
Index Numbers-1923-1925 avg.=-10 .
October
327,169 528,514 550,014 488,875 455,301 490,567
November
289,000 442,254 544,912 460,940 480,300 447,804
468,306
December
465,369
426,551 475,845 407,641
Employment
Payrolls
November 1930.
November 1930.
11 months end. Nov_- 3,588,473 4,814,444 4,652,512 4,457,735 3,343,291 4,441,542
No. of
12 months end. Dec_
5,240,995 5,128,356 4.885,375 4.808,860 4,909,848
Per cent
Plants
Per Cent
Change Since
ReportChange Sines
Group and Industry.
ImportsNov.
M. Nov.
January
310,968 368,897 337.916 356,841 418,752 346.185
Index. Oct.1 Nov. Index. Oct.
Nov.
February
281,707 369,442 351,035 310,877 387.306 333,387
1930. 1929.
1930. 1929.
March
300,460 383.818 380,437 378,331 442,899 385,379
April
307.824 410,666 345,314 375,733 397,912 348,091
-2.1
-27.6
838
May
284.683 400,149 353.981 346,501 320.919 327,519 All manor.Indust.(51)
-2.6
244
-32.8
Metal products
June
250.343 353.403 317,249 354.892 336,251 325.216
+2.2
-34.0
9
Blast
furnaces
July
220,558 352,980 317,848 319,298 338,959 325,848
-1.7
-33.8
Steel works & rolling mills 48
August
218,417 369.358 346.715 368,875 336,477 340,086
+3.4
forgings
10
-22.2
Iron
and
steel
September
226,352 351,304 319,618 342.154 343,202 349,954
-7.4
10
-33.3
Structural iron work
October
247,324 391,063 355,358 355.738 376,868 374.073
Steam and hot water heatNovember
204,700 338,472 326,565 344,269 373,881 376,431
-1.5
-18.9
16
ing
appliances
December
300,800 339,408 331,234 359,462 306,640
-5.5
-29.2
8
Stoves and furnaces
-4.4
37
-44.6
Foundries
11 months end. Nov__ 2,853,338 4,089,552 3,752,036 3,853,509 4,071,426 3,829,950
+0.4
-37.9
43
Machinery and parts
12 months end. Dec__
4,399,361 4,091,444 4,184,742 4,430,888,4,226,589
-5.8
21
-26.4
Electrical apparatus
-3.6
-45.2
10
Engines and pumps
GOLD AND SILVER
-0.7
-33.2
20
Hardware and tools
-5.5
-44.6
Brass and bronze products 12
November.
11 Months Ending Nov.
-6.3
-38.3
Transportation equipment.._
38
Increate(+)
-3.3
-47.8
5
Automobiles
1930.
1920.
1929.
1930.
Decrease(-)
+4.3
Automobile bodies & part, 11
-11.3
-42.5
12
Locornoth es and cars__._
1.000
1.000
1,000
1,000
1.000
+0.2
-22.8
shops_
.....
6
Railroad
repair
Dollars. Dollars.
Dollars.
Dollars.
Dollars
-0.4
+7.2
4
Shipbuilding
Gold+2.0
-24.5
165
Textile products
Exports
+71,895
5,008
30,289
44,036
115.931
-1.3
-42.5
12
Cotton
goods
Imports
40,159
7,123
+79,747
283,528
363,275
-8.7
-32.1
13
Woolens & worsteds
+6.7
-15.1
48
Silk goods
Excess of exports_.-23,166
+2.7
-11.4
finishing
12
Textile
&
dyeing
Excess of imports___ _
35.151
247,344
239,492
+1.1
-30.4
10
Carpets and rugs
Silver-2.2
-30.0
4
Slats
Exports
4,102
8,678
-26,354
50,684
77.038
-1.2
-28.9
27
Hosiery
Imports
2,643
5,144
-19,369
40,091
59.461
+5.3
-19.3
13
Knit goods, other
-6.2
-31.2
9
Men's
clothing
Excess of exports_ _ _ 1,459
3,534
10,593
17,577
+29.9
-3.1
9
Women's clothing
Excess of imports_
-1.5
-20.8
8
Shirts and furnishings_ __.
-0.3
-9.8
96
Foods
and
tobacco
EXPORTS AND IMPORTS OF GOLD AND SILVER. BY MONTHS.
+1.7
-4.1
Bread & bakery products. 26
-4.3
14
-28.9
Confectionery
Gold.
-5.9
Silver.
11
-5.5
Ice Cream
+0.9
-8.3
14
Meat parking
1930. 1929. 1928. 1927
+1.3
1930. 1929. 1928. 1927.
-3.4
31
Cigars and tobacco
-3.2
-35.0
69
Bone. clay & glass products
1.000 1,000 1,000 1.000 1,000 1,000 1,000 1,000
-3.4
-33.3
Brick, tile and pottery._.32
ExportsDollars. Dollars Dollars. Dollars. Dollars. Dollars. Dollars Dollars.
-5.2
-29.7
15
:ement
8,948 1,378 52,086 14,890 5.892 8,264 6,692 7.388
January
0.0
-41.2
22
Class
.
207 1,425 25.806 2,414 5.331 6,595 7,479 6.233
February
-5.6
-41.2
52
.umber products
March
-8.6
290 1.835 97,536 5.625 5.818 7,814 7.405 6.077
-49.0
Lumber & planing mills.. 16
_
110 1,594 96,469 2,592 4,646 5,752 5,587 6,824
4.4
April
-38.4
30
Furniture
82
-4.9
467 83,689 2,510 4.978 7,485 8.712 6,028
May
-35.7
Wooden boxes
6
26
550 99,932 1,840 3,336 5.445 7,456 5.444
-2.7
June
-17.3
60
,hemical products
41.529
-3.2
807 74.190 1,803 3,709 8.795 6.160 6.650
July
-29.6
36
ChernicaLs and drugs
_ 39.332
881
--4.7
1,698 1.524 4.544 8,522 9.246 5.590
August
-29.9
3
Coke
September _ _ _ -. 11,133 1,205 3,810 24.444 3,903 4,374 6,229 6,827
+1.8
-22.7
3
ExplosIves
992 10,698 4,424 7,314 7,252 5,925
-5.3
9,267 3.805
October
-20.3
12
Paints and varnishes
-1.8
5,008 30,289 22,918 55,266 4,102 8,878 7,674 5,634
November
-8.7
Petroleum refining
e
-2.8
.
72,547 1,636 77.849
____
8,369 8,489 7.186
-14.6
December
48
eather .9c rubber products
-0.5
17
-4.1
Leather tanning
11 mos.end.Nov. 115,931 44,036 559,123 123,808 50,684 77,038 78,892 88.438
-7.7
-31.6
20
Shoes
+1.0 12 mos.end.Dec
116,583 560,760 201,455
-24.1
____ 83,407 87,382 75,625
7
Leather products, other_ _
4
-26.1
Rubber tires and goods_
-1.1
Imports66
-12.7
aver and printing
-0.1
January
12.908 48,577 38.320 59.355
8,200
-22.9
Paper and wood pulp_ .._. 12
February
60.198 26,913 14,886 22.309
4,458
9
-24.7
Paper boxes and bags_._ _
-1.6
March
55,768 26,470 2.683 16,382
6,435
45 1
-8.7
Printing & publi,hIng
April
85.835 24.687 5,319 14,503
3,957
figures.
*
Preliminary
May
23,552 24,098 1,988 34.212
4.802
EMPLOYMENT AND WAGES IN DELAWARE
June
13,938 30.762 20.001 14,611
5,022
July
4,723
21,889 35.525 10.330 10.738
[Complied by Federal Reserve Bank of Philadelphia.]
August
2.445 7,877
7.345
19 714 19,271
September
4,111
13.680 18,781 4.273 12.979
No.
Increase 1+) or Decrease (October
5,403
35,635 21,321 14,331 2,056
of
Nov. 1930 Over Oa. 1930.
November
5.144
40,159 7.123 29,591 2,082
Plants
December
8,121 24.950 10.431
4.479
Report- EmployTotal
Indwitry.
Average
ing.
ment.
Wages.
11 mos.end.Nov. 363,275 283.528 143,947 197,104 40,091 59,461 82,9981 51,303
Wages.
12 mos.end.Dec.
63,940 68,117 55.074
291.649 168,897207,535
59
-6.5
II manufacturing industries
--10.4
13
-15.0
Metal products
-22.0
6
Transportation equipment
-12.6
5
Further Decline in Factory Employment in Penn-2.0
Textile Products
--8.1
7
Foods and tobacco
+5.7
--3.0
sylvania and Delaware-Wages also Lower, Accordproducts
4
-3.2
Stone. clay and glass
--11.4
ing to Federal Reserve Bank of Philadelphia.
5
Lumber products
+9.1
+6.9
4
Chemical products
-3.2
Factory employment and wage payments in Pennsylvania
Leather and rubber products
--7.7
-2.7
7
.aper and printing
--5.6
+1.2
-6.7
decline further in November and continued substantially
DEC. 20 1930.]
' FINANCIAL CHRONICLE
--10.1
--4.8
--I1.9
--4.2
--0.2
--I4.2
--4.8
--4.2
7.7
--18.7
4-13.3
--16.1
--I2.7
--9.7
4-7.9
--4.5
--6.7
4-8.0
--5.6
+4.0
4-9.2
4-17.7
--17.4
4-37.0
4-7.1
-4.8
+1.5
--15.1
--8.0
4-0.3
--3.3
--I2.2
--8.6
--I9.7
4-0.4
--I2.8
--4.8
--11.8
--24.5
--0.5
--3.9
--12.7
+2.6
--13.6
--6.6
--27.4
--0.4
--14.2
-4.9
--14.3
4-2.6
4-0.0
.584
.650
.621
.595
.633
.630
.558
.566
.641
.691
.607
.591
.702
.660
.420
.420
.456
.384
.489
.513
.484
.416
.348
.297
.338
.451
.478
.428
.573
.551
.364
.552
.482
.552
.640
.548
.577
.559
.468
.570
.503
.554
.582
.490
.541
.339
.551
.551
.653
.540
.352
.745
.578
.667
.610
.596
.607
.622
.573
.566
.557
.706
.614
.643
.703
.641
.428
.423
.479
.384
.511
.489
.512
.417
.345
.310
.332
.443
.482
.411
.580
.553
.355
.553
.481
.560
.631
.559
.571
.584
.451
.585
.503
.543
.604
.485
.540
.347
.559
.665
.645
.541
.358
.739
33
7
6
11
10
3
8
3
56
20
7
8
9
12
43
21
10
12
44
13
27
4
30
16
5
Si
9
12
6
4
48
a
34
25.94
24.77
22.89
24.77
26.46
21.90
19.09
23.83
24.30
20.34
23.60
24.27
23.44
27.89
19.51
19.89
19.86
18.21
23.27
21.80
22.41
18.69
13.44
13.87
13.80
19.71
27.08
16.28
31.91
28.84
15.08
22.21
18.73
24.32
23.50
20.05
18.23
22.56
16.05
28.46
27.57
24.54
30.98
21.10
24.37
13.69
25.68
22.81
30.93
24.20
16.39
35.13
27.81
26.85
24.22
26.01
25.66
24.29
20.66
23.27
25.34
24.69
22.39
25.58
25.86
27.23
19.34
20.87
21.31
17.71
23.58
21.02
21.61
17.22
14.98
14.11
13.72
19.96
27.57
18.77
32.38
29.17
14.38
24.29
19.77
28.19
24.47
22.28
18.18
25.45
19.97
29.47
27.68
25.94
30.72
22.63
25.00
15.35
26.35
26.80
31.95
27.00
16.86
35.47
•These figures are for the 838 firms reporting employment.
EMPLOYEE-HOURS IN DELAWARE.
[Complied by Federal Reserve Bank of Philadelphia.'
Industry.
All manufacturing Industries
Metal products
Transportation equipment
Textile products
Foods and tobacco
Stone, clay and glass products
Lumber products
Chemical products
Leather and rubber products
Paper and Printing
No.
Increase(+) or Decrease
(-)
of
Nov. 1930 Orer Oct. 1930.
Plants
Report- EmployTotal
Total
ing
nunt.
Wages.
Hours.
51
11
5
4
6
4
5
4
6
--6.1
--4.9
--16.1
--1.9
--8.5
--3.2
--2.0
--0.6
--5.6
4-1.3
--9.8
--I6.4
--18.5
--6.2
--3.1
--I1.4
4-6.9
--3.2
--8.1
--6.6
--10.0
--18.5
--19.6
-3.4
--5.9
--I0.7
4-5.7
--5.0
--8.8
--I1.4
EMPLOYMENT AND WAGES IN CITY AREAS.
[Compiled by Department of Stalls les and Research, Federal
Reserve Bank
of Philadelphia.)
Allentown-Bethlehem-Easton
Altoona
Erie
Harrisburg
Hazleton-Pottsville
Johnstown
Lancaster
New Castle
Philadelphia
Pittsburgh
Reading-Lebanon
Scranton
Sunbury
Wilkes-Barre
Williamsport
Wilmington
York
Employment
Payrolls
No. of Percentage Change Percentage Change
Plants Nov. 1930 Since
Nov. 1930 Since
Report
Oct.
fno.
Nov.
Oct.
Not.
1930
1929.
1930.
1929,
79
+1.0 --15.9
--9.7 --29.5
14
+1.6
--6.8
--3.0 --23.3
23
-5.0 --21.4 --11.9 --35.9
36
-3.7 --16.1
--6.6 --27.7
20
+7.7
--9.9 4-14.1 --22.6
15
-1.2 --25.8
--1.7 --33.9
+2.4
29
--8.9
4-3.8 --I5.0
-2.2 --17.3 --I3.4 --28
11
0
-4.1 --14.2
252
--5.9 --23.1
--1.8 --15.1 --11.9 89
-33.4
63
--0.9 --16.1
--4.0 --33.4
29
+5.4
--9.7
--4.9 --18.8
23
--3.2 --13.7
--4.1 --21.9
25
+0.6
--4.1
4.4.9
--9.3
25
-5.2 --28.8
--9.8 --33.7
28
-5.9 --20.3
--8.8 --24.7
49
-4.7
--8.8
--0.1 --15.3
Decline in Employment and Wages in
Pennsylvania
Anthracite Collieries During November
Reported
by Federal Reserve Bank of Philadelphia.
After rising seasonally to the average level of 1923-25
in
October, anthracite employment and wage payments
turned
down in November, according to Indexes compiled by
the
Philadelphia Federal Reserve Bank from reports
to the
Anthracite Bureau of Information by 147 collieries
employing about 100,000 workers with wage earnings amounting
to
January
February
March
April
May
June
July
August
September
October
November
December
Wage Payments.
1929.
1930,
115.8
110.6
114.9
116.3
114.0
102.3
100.7
110.9
112.7
135.9
117.7
109.4
109.8
109.4
101.3
104.1
107.2
05.4
85.6
93.8
105.5
109.8
107.6
110.8
105.6
107.8
83.3
84.8
94.5
91.5
92.3
80.8
94.5
99,7
97.8
1928.
C CO
Co CO
13
3
31
36
19
10
14
9
28
5
8
7
4
4
98
Employment.
1928.
Co
$.577 $23.16 $24.45
.620 24.11 26.01
.641 27.39 30.55
.638 23.44 26.81
.547 25.00 21.38
.581 23.27 25.08
0CO -Co
Co
5.574
.625
.603
.637
.551
.572
Co Co
Oct.
-6.1
-9.0
-3.5
-14.4
+25.6
-6.6
a
Nov.
569
191
7
33
9
7
The number of workers declined 2% and the volume of wage earnings
dropped 16% between October and November.
The employment index stood in November at 97.8% of the 1923-25
average, showing a decline of 9% from November 1929. The payroll index
at 83.5 was nearly 5% lower than a year ago.
Comparisons follow:
EMPLOYMENT AND WAGES PAYMENTS IN PENNSYLVANIA.
Index numbers-1923-25 monthly average=100.
1929.
1930.
00CO
000 C C CO
CO NO N CO.-0Co CO C NO
-01-NCON CO CO CC -Co -
All manufacturing Industries (48)
Metal products
Blast furnaces
Steel works and rolling
Iron and steel forgIngs
Structural iron work
Steam and hot water heating
apparatus
Stoves and furnaces
Foundries.
Machinery and parts
Electrical apparatus
Engines and pumps
Hardware and tools
Braes and bronze products
Transportation equipment
Automobiles
Automobile bodies and Parts
Locomotives and cars
Railroad repair shops
Shipbuilding
Textile products
Cotton goods
Woolens and worsteds
Silk goods
Textile dyeing and finishing
Carpets and rugs
Hosiery
Knit goods, other
Men's clothing
Women's clothing
Shirts and furnishings
Foods and tobacco
Bread and bakery product&
Confectionery
Ice cream
Meat packing
Cigars and tobacco
Stone, clay and glass products....
Brick, tile and pottery
Cement
Glass
Lumber products
Lumber and planing mills
Furniture
Wooden boxes
Chemical products
Chemicals and drugs
Paints and varnishes
Petroleum refining
Leather and rubber product&
Leather tanning
Shoes
Leather products, other
Rubber tires and goods
Paper and printing
Paper and wood pulp
Paper Dome and bags
Printing and publishing
Weekly Wager,
over $3,100p00. The Bank under date of Dec. 17 reports
further as follows:
Coo,
Group and Industry.
Employehours Hourly Wages.
No.
Change
of
Plants Nov. '30
Report- from
Mg. Oct. '30. Nov.
Oct.
3949
10
EMPLOYEE-HOURS AND AVERAGE HOURLY AND WEEKLY WAGES IN
PENNSYLVANIA.
[Compiled by the Federal Reserve Bank of Philadelphia and the Department of
Labor and Industry, Commonwealth of Pennsylvania.]
92.1
103.7
67.1
63.9
84.2
74.1
71.6
67.2
78.1
119.9
Industrial Employment Conditions in Ohio and Ohio
Cities-Continued Decline Reported.
The Bureau of Business Research of the Ohio State University states that "the employment decline In Ohio, wtich
has been in progress for the past seventeen months, continued in November at a slightly increased rate, as compared
with the preceding month. In its further report of industrial employment conditions in Ohio and Ohio cities during
November, tihe Bureau says:
The month-to-month decline since July has been counter to the usual
seasonal trend and the 4% decline in November from October was greater
than the five-year average October-to-November decline of 2%. The November decline carried the total volume of employment to a point 21%
below November 1929. Average employment for the first eleven months of
1930 was 17% less than for the corresponding period of 1929. Five hundred and nineteen of the 891 concerns reporting to the Bureau of Business
Research reported further employment decreases in November from October,
276 reporting increases, and 96 reported no change from October.
Total manufacturing employment also declined 4% in November from
October, while the average October-to-November change for the past fiveyear period has been a decline of 3%. Manufacturing employment in November was 21% less than in the corresponding month of last year, and
for the first eleven months of 1930 averaged 18% less than for the same
period in 1929. The decrease in manufacturing employment in Ohio in
November from October was experienced in all the major groups of the
manufacturing industries, except the stone, clay and glass products group
which reported no further decline from October. The October-to-November
decline ranged from 1% in the machinery group to 14% in the textile
group; the decline amounting to 2% in the paper and printing, and the
vehicles groups, 3% in the miscellaneous manufacturing group, 4% in the
rubber and rubber products group, 5% in the chemicals, metal products, and
lumber products groups, 8% in the food products group, and 14% in the
textiles group.
The non-manufacturing industries of the State showed a decline of 1% in
employment in November from October although there is usually no change
in November from October as indicated by the average change during the
past five-year period.
Employment in non-manufacturing industries of the State in November
was 14% less than in November of last year and for the first eleven months
of 1930 was 8% behind the corresponding period of 1929.
The October-to-November decrease of 11% in the construction industry
of Ohio was greater than the fivel-ear average October-to-November decline
of 9%. The volume of construction employment in November was 31%
less than in November 1929, and for the first eleven months of this year
was 16% behind the first eleven months of last year.
The 2% decrease in employment in November from October in the vehicles
group, of which automobiles and automobile parts is the principal industry
was less than the usual seasonal decline of 5%, as shown by the average
October-to-November change during the past five-year period. The volume
of employment in the vehicles industry in manufacturing was 14% less
than in November 1929, while the volume for the first eleven months of
1930 was 28% behind the volume for the first eleven months of 1929.
The 5% decline in employment in November from October in the metal
products industries was greater than the five-year average October-toNovember decline of 4%. The volume of employment in the metal prod.
nets industries in November was 22% less than in November of last year.
Ninety-five of the 162 concerns reporting in this group reported employment declines in November from October, 14 reported no change, and 53
reported increases. The 1% decline in employment in the 105 reporting
machinery industries was slightly more than seasonal. The total volume
of employment in the machinery industry in November was 29% less
than in November 1929.
The 4% decline in November from October in the rubber products
group of industries of which tire and tube manufacturing is the principal
industry was greater than the five-year average October-to-November
decline of 3%. The total volume of employment in the rubber products
industry in November was 28% less than in November 1929, and the
average for the first eleven months of 1930 was 24% less than the
average for the corresponding period of 1929.
The relative stability in employment in the stone, clay and glass
products industry shows something more than seasonal stability when
compared with the average October-to-November decline of 1% during
Employment in the stone, clay and glass
the past five-year period.
products industry in November was 20% less than in November
of last
year.
The 5% decrease in employment in the lumber products industries in
November was considerably greater than the five-year average Octoberto.
November decline of 1%. Employment in the lumber products
industry
In November was 21% less than in November 1929, and, for the
first
eleven months of this year, was 12% behind the first eleven
months of
kit yam
FINANCIAL CHRONICLE
3950
In all of the chief cities of the State, except Dayton, there was a
decline in total industrial employment in November from October, the
decline amounting to 1% in Cincinnati and Toledo, 3% in Columbus, 4%
in Akron and Youngstown, and 6% in Cleveland. In Akron, Cleveland,
and Columbus, the October-to-November decline was greater than the
five-year average October-to-November decline, but in Cincinnati and
Youngstown, the decline was no greater than the usual seasonal decline,
and in Toledo the decline was somewhat less than the usual seasonal decline.
The 3% increase in employment in Dayton in November from October was
in contrast to the five-year average October-to-November decline of 1%.
As compared with November 1929, all of the chief cities of the State
reported employment declines in November ranging from 18% in Youngstown to 27% in Akron; with Toledo showing a decline from November of
last year of 18%, Cincinnati of 19%, and Cleveland, Columbus and Dayton
of 20%.
Construction employment in November declined in all the chief cities of
the State except Akron and Cincinnati, the October-to-November decline
in all the cities except Youngstown being substantially greater than the
usual seasonal decline as indicated by the five-year average October-to-November change. In Akron and Cincinnati, the increase compares favorably with the usual substantial seasonal decline as shown by the average
October-to-November change during the past five-year period. As compared with November 1929, construction employment showed a marked
decline in all the chief cities of the State, but an increase of 13% in Stark
County. Likewise, for the first eleven months of 1930, construction employment declined from the corresponding period of 1929 in all the chief
cities of the State, except Columbus which showed an increase of 1%.
INDUSTRIAL EMPLOYMENT IN OHIO.
(In Each Series Average Month 1926 Equals 100.1
(Based on the number of persons on the payroll on the 15th of the month or nearest
representative day as reported by co-operating firms.)
Industry.
No. of
Report- Index
Nov.
Inc
Firms. 1930.
Change
from
Oct.
1930.
Chemicals
Food products
Lumber products
Machinery
Metal products
Paper and printing
Rubber products
Stone. clay & glass prod.__
Textiles
Vehicles
MIscell. manufacturing_ _ _
or,
51
28
105
162
40
22
59
44
61
32
78
119
85
80
71
100
71
77
80
77
89
-14
-2
-3
Total manufacturing_ _ _
Service
Trade
Transp'n and public utility
626
11
35
17
76
109
-4
-5
103
Totalnon-manufacturing
Construction
All Indligtrlos
63
202
891
99
73
80
Average
Jan.Nor.
Change
from
1929.
Average
Change Change
from
Nor.
Nov.
from
Oct.
1929.
1925-29.
-13%
-8
-21
-29
-22
-10
-28
-20
-25
-14
-16
-13%
-3
-12
-18
-18
-1
-21
--I6
-12
-28
-9
-3
-3
-1
+2
-1
-21
-2
-10
-14
-18
+1
-6
-5
-1
-11
-4
____
-9
-2
-14
-31
-21
-8
-16
-17
-5%
-8
-5
-1
-5
-2
-4
-1%
-4
-1
____
-4
____
-3
--I
-2
-5
-3
Business and Agricultural Conditions in Minneapolis
Federal Reserve District-Business in Smaller
Volume Than Year Ago.
In,its preliminary summary of agricultural and business
conditions in its District, issued Dec. 15, the Federal
Reserve Bank of Minneapolis says:
Business in the District during November continued to be in smaller
volume than a year ago, but the reduction was not as great as in the earlier
months of the fall. This was partly due to a lower level of business in
November last year than in the early fall months of that year. and partly
due to a small rise in the level of business in November this year. Bank
debits were 18% smaller in November this year than a year ago. Of
the 93 cities reporting bank debits, 17 reported increases over the volume
In November a year ago. In October only six cities reported increases,
and in August and September only 12 cities reported increases in bank
debits over last year's figures. The increases in bank debits were almost
entirely in the mixed farming region of central South Dakota, Minnesota
bank
and western Wisconsin. Some cities also reported a larger volume of
debits than in 1928.
The majority of other business indexes showed declines in November
as compared with the same month last year. For the country check
the
clearings Index the decrease was 18%, and for freight carloadings in
were
first two weeks of November the decrease was 24%. Decreases
also shown in building permits and contracts, mining activity, livestock
power
receipts and department store sales. Increases occurred in electric
consumption in the eastern part of the District, in flour and linseed product
shipments and grain marketings.
was
The estimated cash value of farm products marketed in November
year. De17% smaller than the value of marketings in November last
occurring
creases occurred in all estimated items, the smallest decreases
products
in durum wheat and hogs. Prices of all important agricultural
in the District were lower in November than a year ago.
MARKETED
ESTIMATED VALUE OF IMPORTANT FARM PRODUCTS
IN THE NINTH FEDERAL RESERVE DISTRCT.
Bread wheat
Durum wheat
Rye
Flax
Potatoes
Dairy Products
Hogs
Total of seven items
_November
1930.
November
1929.
Per Cent
Nov. 1930
of
Nov. 1929.
$6,985.000
3,170,000
246,000
2,817,000
2.310,000
13,322,000
14,409,000
$10,206,000
3,510,000
855,000
3 639.000
2,762,000
15,388,000
15,887,000
68
90
29
77
84
87
91
843,259,000
$52,247,000
83
Los
Southwest Business Conditions as Viewed by
Angeles Chamber of Commerce- Employment
Conditions.
According to the "Southwest Business Review," published
by the Los Angeles Chamber of 'Commerce, local business
[VOL. 131.
activity for the month of November appears least favorable
by comparison of any month of the calendar year, however
seasonal declines and the depression bottom easily account
for this condition. It is added that there Is every evidence
itat December will represent a strong month in many lines
and will bring 1930 close to 1929. Then, too, the constructive
efforts of business leaders are encouraging and bound to
produce greater stability, says the Chamber, which also
says:
Building permits for November were below November 1929 in valuation
by some two million dollars; also lower than October of this year, which
is in line with usual annual fluctuations. Bank debits decreased 20% from
the October figure; employment fell several points to 75.3 for November,
due to moderate declines in seven of the 10 industrial groups, also largely
seasonal. Wearing apparel showed an increased activity in seasonal lines;
millinery was quiet, due to seasonal dullness.
Motion pictures are very active; furniture manufacturers are busy with
volume of business very satisfactory. Mining, while curtailing production,
2c. rise in copper. Petroleum is
1
Is feeling a steadying effect from a 2/
continuing on the restricted production program with need of further control
in view of the bringing in of new fields. Postal receipts dropped some 14%
frown October; stock exchange transactions were below both October and
last November. Agricultural returns to the State promise to be greater
than last year.
As to employment conditions, the Chamber says:
With seven of the 10 industrial groups showing moderate declines during
November, the Chamber of Commerce index of industrial employment
dropped seven points from the mark of last month. At the present level
the index is at the second lowest point of the year, the record low having
been reached during June.
The seven groups which showed declines from October were: Food
products; millwork; furniture and fixtures; printing and lithographing;
clay products ; rubber, and petroleum. Moderate gains were registered in
the following three lines: Motion pictures; iron and steel, and wearing
apparel.
In general, it might be said that practically all of these increases or
declines are seasonal in nature, although all groups without exception are
operating at lower than normal levels.
Compared to last year, each of the 10 groups is considerably lower in
employment. The outstanding drops have taken place in iron and steel.
millwork, and furniture and fixtures.
Comparative figures are as follows: November 1930, 75.3 ; October 1930,
82.9; November 1929, 110.2.
Business Conditions in California as Viewed by State
Chamber of Commerce-Industrial Production
Relatively Small in Volume.
Business indexes for California continued to reflect depressed conditions during October, according to an analysis
of statistical data prepared by the Research Department
of the California State Chamber of Commerce. After
allowing for seasonal changes, October bank debits and
freight car loadings showed slight gains over the previous
month, while industrial employment, building permits, and
new car registration moved to lower levels. The Chamber
also says, in part:
Bank debits for 14 California cities, adjusted for seasonal changes,
showed a small gain of 2.5% over September, and were about 27% below
a year ago. The 12 cities, excluding San Francisco and Los Angeles,
less than
increased 3.6% over the previous month and were only 19%
October 1929.
Weather conditions during October, for the State as a whole, were
favorable for the normal progress of agricultural operations. Rains, which
were considerably below normal in all sections of the State, somewhat
delayed the harvesting of grapes, prunes, rice, and beans, but caused little
damage to the quality or quantity of these crops. The yields of practically
all California crops were favorable, but the markets were generally weak.
Livestock, pastures, and ranges were in somewhat better condition than a
year ago. Prices of livestock and products continued low.
Industrial production continued relatively small in volume. Many manufacturing plants operated on part-time schedules.
A general surplus of labor continued throughout the State. An influx of
workers from the East for the winter months is increasing the number unemployed in the State. Industrial employment during October was less than
in August in practically all lines. Curtailed operations continued in
many industries during October. Large numbers of people were released
when many fruit canneries closed for the season. Some increase in employment is anticipated with the approaching holiday season.
Building activity in 51 California cities during October, as measured by
the value of building permits, was less than the previous month and about
27% below a year ago. Normally, there is a gain of 10.8% from September
to October, whereas this year a decrease of.10.5% occurred. Practically
all regions of the State showed a substantial decline over the previous
month.
The dollar volume of trade at retail and wholesale was lower in October
than in September this year. Department store sales in California during
October were 7.7% below last year. The corresponding percentage decreases
for August and September were 8.9% and 4.4%, respectively. October
wholesale sales for the Twelfth Federal Reserve District were 18% below
October 1929, whereas the decline in September wase 10.2% below
September 1929.
Sales of new autobomilcs decreased 13.8% from September to October,
wheteas the last eight-year averages show an increase of 4%. For the year
to date, sales in Northern and Southern California were 20.9% and 28.8%,
respectively, less than a year ago.
Total freight car loadings for October exceeded the previous month's total
by 13.4%, which corresponds closely to the usual seasonal increase. Miscellaneous and merchandise L. C. L., the two groups which reflect retail trade,
were 2.1% below September 1930. Normally, October shows an increase
of 17.4% over September.
Dix. 20 1930.]
FINANCIAL CHRONICLE
Loans and discounts of California Reserve member banks on Oct. 29 were
2.4% less than a year ago, and total deposits increased 3.3%. The ratios
of loans and discounts to total deposits was 79.4 as compared with 84
last year.
Softwood Lumber Orders Increase Reported.
Softwood lumber orders for the week ended Dec. 13 bore
an unusually favorable relation to production both for
this season of the year and by comparison with recent weekly
figures, it is indicated in reports from a large group of important mills to the National Lumber Manufacturers'
Association. Although production, shipments and order
figures are running considerably below those of other years,
new business at reporting softwood mills was 13% above
the cut. Combined softwood and hardwood orders at 848
leading mills were reported as 11% in excess of a production
of 227,722,000 feet. For the equivalent week a year ago
848 mills reported production 351,009,000 feet, shipments
294,167,000 feet and orders 310,605,000 feet. Identical
mills reporting for the two years showed softwoods, 489
mills, production 35% less, shipments 26% less and orders
21% less than for the week in 1929;for hardwoods, 192 mills,
production 44% less, shipments 28% less and orders 31%
under the volume for the week a year ago.. Shipments for
the week ended Dec. 13 of this year were 5% under production. A week earlier 853 mills reported orders equaling
and shipments 1% under a production of 220,850,000 feet.
Lumber orders reported for the week ended Dec. 13 1930
by 628 softwood mills totaled 232,257,000 feet, or 13% above
the production of the same mills. Shipments as reported
for the same week were 194,178,000 feet, or 5% below production. Production was 204,854,000 feet.
Reports from 238 hardwood mills give new business as
20,368,000 feet, or 11% below production. Shipments as
reported for the same week were 20,760,000 feet, or 9%
below production. Production was 22,868,000 feet. The
Association's statement further reports:
Unfilled Orders.
Reports from 504 softwood mills give unfilled orders of 765,817,000
feet on Dec. 13 1930. or the equivalent of 15 days' production. This is
based upon production of latest calendar year-300-day year-and may
be compared with unfilled orders of 502 softwood mills on Dec. 6 1930,
of 723,549.000 feet, the equivalent of 14 days' production.
The 382 identical softwood mills report unfilled orders as 713.646.000
feet on Dec. 13 1930. as compared with 942,241,000 feet for the same week
a year ago. Last week's production of 489 identical softwood mills was
188,266,000 feet. and a year ago it was 288,649,000 feet; shipments were
respectively 181.032,000 feet and 246.068,000; and orders received
210,049,000 feet and 265.664,000. In the case of hardwoods. 192 identical
mills reported production last week and a year ago 19,253,000 feet and
34,465,000; shipments. 17,809,000 feet and 24,846,000; and orders 16.667,000 feet and 24,083,000.
West Coast Movement.
The West Coast Lumbermen's Association wired from Seattle the following new business, shipments and unfilled orders for 228 mills reporting for the week ended Dec. 13:
NEW BUSINESS.
Feet.
Domestic cargo
delivery ___
Export
By rail
Other
Total
UNSIIIPPED ORDERS.
SHIPMENTS,
Feet.
Feet.
Domestic cargo
Coastwise and
74,294,000
delivery _ .234,245,000
Intercoastal _ 52,605,000
17,535.000 Foreign
106,468,000 Export
16,482,000
38,752.000 RaiWade
100,097.000 Rail
29,391,000
8,004,0011
Local
8,004,000
138,587,0001
Total
440,810,0001
Total
The North Carolina Pine Association of Norfolk, Va., reported production from 100 mills as 7,248,000 feet, shipments 8.064,000 and new business
6,436.000. Forty-seven identical mills reported a decrease in production
of 36% and new business the same in comparison with 1929.
The California Redwood Association of San Francisco reported production from 12 mills as 5,720.000 feet, shipments 5,294,000 and orders 4,908.000. The same number of mills reported a decrease in production of 25%
and a decrease in orders of 23% when compared with a year ago.
Hardwood Reports.
The Hardwood Manufacturers' Institute of Memphis, Tenn., reported
production from 220 mills as 21,040,000 feet, shipments 19,202,000 and
now business 19.342.000. Reports from 174 identical mills showed a
decrease of 40% in production and a decrease of 28% in new business when
compared with 1929.
The Northern Hemlock & Hardwood Manufacturers' Association of
Oshkosh, Wis., reported production from 18 mills as 1.828,000 feet, shipments 1,558,000 and orders 1,026.000. The same number of mills reported
a decrease of 67% in production and a decrease of 56% In orders in comparison with last year.
CURRENT RELATIONSHIP OF SHIPMENTS AND ORDERS TO PRODUCTION FOR WEEK END. DEC 13 1930 & FOR 50 WEEKS TO DATE.
Associcaion.
Ship-
.PI7'.t.
''
1 nr%t.
'
s
7
,
P. C.
P. C.
fOrders,
Prod.
o
lll Ft.
Pcirf4.
Week-147 mill reports
41.956
36,582 87
50 weeks-7,087 m111 reports
2,654,349 2,509,437 95
West Coast Lumbermen's
Week-228 mill reports
115,595
106,481 92
50 weeks-11,048 mill reports,..,_ 6,961,216 6,786.623 97
Weetern Pine Mfrs..
Week-92 mill reports
24.615
21,032 86
50 weeks-4,600 mill reports
1,938,849 1.805.132 93
California White & Sugar Pine.
Week-24 mill reports
8,271
13,310 161
50 weeks-1,215 mIll reports
905,849
958,142 106
Northern Pine Mfrs..
Week-7 mill reports
191
2,442 1279
198,704
50 weeks-375 mill reports
184,643 93
Northern Hemlock & Hardwood.
Week-18 mill reports
1,460
923 63
137,493
105,122 76
50 weeks-1,516 mill reports
North Carolina Pine.
7,248
Week-100 mill reports
8,064 111
410.817
427,200 104
50 weeks-5,334 mill reports
California Redwood.
5,720
Week-12 mIllrePorts
5,294 93
329,335
298,001 91
50 weeks-719 mill reports
Softwood total.
Week-628 mill reports
50 weeks-31.894 mill reports
204,854
194,178
_ 13.536,612 13,075,200
38,031
2,468,625
91
93
138,587 120
6,826,498 98
29,428 120
1,752,534 90
12,476 151
935,829 103
1,631 854
177,608 89
95
760
93,029
52
68
6,436
342.938
89
83
4.908
300,269
86
91
232,257 113
97 12,897,330
95
91
93
19,342
1,365,202
92
89
1,558
200,141
85
70
1,026
159,693
56
Hardwood total.
Week-238 mIll reports
50 weeks-14,230 mill reports
22,868
20,760
1,818,050 1,619,465
91
89
20,368
1,524,895
89
84
Grand total
Week-848 mill reports
it An ‘eeek-44 608 mill rrnfirts
227,722
214,938
15.354.882 14.694.665
Hardwood Mfrs.' Institute.
Week-220 mill reports
50 weeks-12,714 mill reports
Northern Hemlock & Hardwood.
Week-18 mill reports
50 weeks-1,516 mill reports
21,040
19.202
1,531,882 1,419,324
1,828
286,168
56
94
252,625 111
96 14.422.225 94
West Coast Lumbermen's Association Weekly Report.
According to the West Coast Lumbermen's Association,
228 mills report that for the week ended Dec. 6 1930 there
were produced 114,442,427 feet of lumber, 116,212,539 feet
ordered and 106,758,268 feet shipped. This compares with
102,018,087 feet produced, 106,190,999 feet ordered and
104,573,004 feat shipped in the preceding week. The
Association's statement follows:
DOMESTIC CARGO DISTRIBUTION WEEK END. NOV. 29 '30 (122 Mills).
Orders on
Hand BeOrders
gin'y Week Received.
Nor. 29'30.
Washingion& Ofeg073
(95 .t11/13)California
Atlantic Coast
Miscellaneous
Southern Pine Reports.
The Southern Pine Association reported from Now Orleans that for
147 mills reporting, shipments were 13% below production and orders 9%
below production and 4% below shipments. New business taken during
the week amounted to 38.031.000 feet (previous week 33,831,000 at 135
mills); shipments, 36,582,000 feet (previous week 34,440,000); and production, 41,956.000 feet (previous week 39,593.000). The three-year
average production of these 147 mills is 69,804.000 feet. Orders on hand
at the end of the week at 127 mills were 97,671,000 feet. The 133 identical
mills reported a decrease in production of 33%, and in new business a decrease of 38%, as compared with the same week a year ago.
The Western Pine Manufacturers' Association of Portland. Ore., reported production from 92 mills as 24,615,000 feet. shipments 21,082,000
and new business 29,428.000 feet. Sixty-five identical mills reported
production 34% less and new,business the same when compared with reports
for the same period of last year.
The California White & Sugar Pine Manufacturers' Association of San
Francisco reported production from 24 mills as 8.271,000 feet, shipments
13,310,000 and orders 12,476,000 feet. The same number of mills reported
a decrease of 62% in production and a decrease of 19% in orders when
compared with 1929.
The Northern Pine Manufacturers' Association of Minneapolis, Minn.,
reported production from seven mills as 191,000 feet, shipments 2.442,000
and new business 1,631,000. The same number of mills reported production 88% less and new business 34% less, than that reported for the corresponding week a year ago.
The Northern Hemlock & Hardwood Manufacturers' Association of
Oshkosh, Wis., reported production from 18 mills as 1,460.000 feet, shipments 923,000 and orders 760.000. The same number of mills reported a
decrease of 45% in production and a decrease of61% in orders in comparison
with last year
Produc-
Southern Pine.
106,481,000
Weekly capacity of these 228 mills is 251.587,000 feet. Their actual
production for the week was 115,393,000.
For the 49 weeks ended Dec. 6, 139 identical mills reported orders 4%
below production and shipments were 1.4% below production. The same
mills showed an increase in inventories of 6% on Dec. 6 as compared with
Jan. 1.
3951
Feet.
Feet.
Brit. Col. (16 Mills)
California
Atlantic Coast
Miscellaneous
Total Brit. Columbia
Report'g domestic carg
only (3 milts)
Shipmods.
Untitled
Orders
Week Ended
Nov. 29 30.
Feet.
Feet.
Feet,
53,896,331 12,623,558
709,103 10,687.576 49,123,210
118,948,239 26,929,518 +138,800 23,552.489 122,464,068
2,910,020
445,000
155,000
75.000 3,125,920
Total Wash.& Oregon _ _ 175,755,490 39,098,076
Report's domestic cargo
only (8 mills)
6,846,926 1,192,122
Totals
Canceltattoos.
182,602,416 41,190,198
725,303 40,315,065 174,713,198
255,230 1,261,008
6,522,810
980,533 41,576,073 181,236,008
898,893
235,000
60,976
325,000
747.917
10,619,000 4,008,822
None 2,579,470 12,048.3.52
8,688.861 4,923,906 +271,000 2,968,853 10,914,914
20,206,754 9,167,728 +210,024 5,873,323 23,711,183
1,335,426
None
None
None
1,335.426
Totals
21,542,180 9,167,728 +210.024 5,873.323 25,046.609
Total domestic cargo
04.144 508 DI 367 926
770.809 47.449.396 206.282 617
WEEKLY COMPARISON (IN FEET) FOR 228 IDENTICAL MILLS-1930.
(All mills whose reports of production, orders and shipments are complete
for the last four weeks.)
Week EndedDec. 6.
Nov. 29.
Nov. 22.
Nov. 15.
Production
114,442,427 102,018,087 115,530.411 108,120.503
116,212,539 106,190,099 107,609,616 106.461,792
Orders (100%)
Rail (29%)
34,040,476
30,578.212
33,955,955
33,004.551
57,737,668
Domestic cargo (50%)._
50,357,926
40,839,062 49,142,477
Export (13%)
14,846,920
15,584,257
22,548,633
15,791,501
9,587,575
Local (8%)
9,670,604
10,265,966
8,523.263
Shipments(100%)
106,758,268 104,573,004 105,333,841 102,408,313
29,729,427 30.779,742 33,814,767
Rail (28%)
34,448,654
Domestic cargo (44%)
47,469,245 46,980,766 45,811,743 45.6)6.503
10,972,021
Export (19%)
17,141,892
15,441,365
13,739,893
9.587,575
Local (9%)
9,670,604
10,265,966
8,523,263
Unfilled orders (100%)
410,770,795 404,275,698 402,024,021 403,198,460
89,289,329 86,679,645 84,413,101
Rail (22%)
84,141,865
Domestic cargo (53%)..-215,806,769 206,282,617 203,918,804 2
11,132,073
Export(25%)
105,674,697 111,313,436 113,692,116
107,924,522
FINANCIAL CHRONICLE
3952
COMPARISON OF CURRENT AND PAST PRODUCTION AND WEEKLY
OPERATING CAPACITY (352 IDENTICAL MILLS).
(All mills reporting production for 1929 and 1930 to date.)
132,475,285 feet
Actual production week ended Dec.6 1930
161,676,062 feet
Average weekly production 49 weeks ended Dec. 6 1930
209,555,683 feet
Average weekly production during 1929
216,502,776 feet
Average weekly production last three years
304,643,119 feet
I Weekly operating capacity
12
6 a Weekly operating capacity Is based on average hourly production for the
last months preceding mill check and the normal number of operating hours per week.
183 IDENTICAL MILLS.
(All mine whose reports of production, orders and shipments are complete for
1929 and 1930 to date.)
Average 49
Average 49
Weeks Ended
Weeks Ended
Week Ended
Dec. 7 1929.
Dec.6 1930.
Dec. 6 1930.
168,341,879
128,839,373
104,465,378
Production (feet)
163,565,426
123,582,709
105,289,568
Orders (feet)
165,383,530
127,932.084
98.531.725
Shipments (feet)
[Poi,. 131.
United States last month were 3,730 tons, as compared
with 4,759 tons in the previous month, while 1,297 tons
went to the United Kingdom during November, as compared with 1,513 tons in the preceding month.
Shipments of Malayan Crude Rubber Decline.
Shipments of Malayan crude rubber during November
totaled 41,281 tons, a decline of 6,489 tons from the shipments of the previous month, according to cables to the
Rubber Exchange of New York. Shipments to the
United States from Malaya last month were 22,276 tons,
against 24,999 tons in October. The stronger statistical
position disclosed by the November figures had been anthe trade here, and was an important factor
Paper and Wood Pulp Industry in 1930—Paper Produc- ticipated in
the upward movement in crude rubber
about
bringing
in
ComTons
tion This Year Estimated at 9,962,488
developed on the Rubber Exchange.
has
which
futures
pares with 10,984,000 Tons in 1929.•
the
of
t
According to reports to the Statistical Departmen
Production and Shipments of Pneumatic Casings in
American Paper and Pulp Association from member mills
October Continued Below Those for Same Month
and co-operating organizations, it is estimated that the proin 1929—Inventories Show Little Change.
duction of paper for the year 1930 will total 9,962,488 tons
s of pneumatic casings on hand Oct. 31 show
Inventorie
as compared win 10,984,000 tons for 1929, a decrease of ap- practically no change as compared with Sept. 30 according
proximately 9%. It is estimated that the consumption of to statistics issued by The Rubber Manufacturers Associapaper made in the United States will probably be approxi- tion. This organization reports 9,802,687 casings on hand
mately 10% below the level of 1929. The Association's ad- Oct. 31 as against 9,811,764 casings on hand Sapt. 30.
vices continue:
Production of pneumatic casings for the month of October
The paper industry is more fortunate than many other major industries is placed at 3,582,416 an increase of 6.4% over the September
In that it is not so sharply affected by the sharp upward and downward figure of 3,365,444. Production for October a year ago
Fluctuations in
movements in the cyclical movements of general business.
is amounted to 4,611,480 casings.
the operations in the paper industry are of a more moderate nature than
downShipments of pneumatic casings for the first 10 months
the case in most other industries. While general industry started its
below
ward trend late in 1929, the paper industry did not begin to run
this year exceeded production by 4.3% wheraas during the
of
the
the level of 1929 until about March 1930. Individual sections of
and
period of 1929 there was no excess. Shipments of pneuconditions
same
paper industry, however, respond differently to the same
others. matic casings for tha month of October amounted to 3,499,300
therefore, some sections felt the effect of the depression earlier than
have
In most instances throughout the year, production and demand
as compared with 4,405,176 casings in September 1930
been fairly well balanced and in general, stocks of paper have not shown
and 4,649,696 a year ago.
sharp increases, as did many other industries.
than
The employment situation in the paper industry also held up better
a great many other industries. Employment did not fall below the level
of 1929 until after the first quarter of the year and then the decrease
below that level was moderate.
An estimate of 1930 production as compared with 1929 production of
is
the various grades of paper follows. This estimate for the year of 1930
based on identical mill reports to the American Paper and Pulp Association
for the first 10 months of 1930.
UNITED STATES ESTIMATED PAPER PRODUCTION.
(Tons of 2,000 Pounds.)
Grade.
Board
Book, uncoated
Newsprint
Wrapping and bag
Writing
Cover
Tissue
1930.
1929.
Per Cent Change
4,122,000
1,303,200
1,308,480
1,456.067
520,650
25,365
367,500
4,500,000
1,440.000
1,392,000
1,649,000
585,000
28.500
375.000
—8.4
—9.5
—6.0
—11.7
—11.0
—11.0
—2.0
—9.3
•10.984,000
9,962,489
Total
•Includes "All other paper."
The total production of wood pulp in the United States was estimated to
be 5% below that of 1929 and the total imports for the calendar year of
The
1930 were estimated to be 4% below the level of the previous year.
of
imports of groundwood and bleached kraft increased. In the matter
bleached kraft, the tonnage was small. The 16% increase in the imports
the
of groundwood was due primarily to the drought which existed in
United States curtailing domestic production. Imports of sulphite pulp
will probably be 6% below the level of 1929 while kraft pulp imports will
probably be 12% below the level of 1929.
The general business outlook for 1931, according to leading economists
in
Is for an improvement in business conditions. If the improvement
general business conditions materializes as is anticipated, the paper industry will of course, reflect this improvement in its operations.
Estimated Consumption of Crude Rubber by Manufacturers in the United States Lower in November—
Inventories Again Increase.
According to statistics released by the Rubber Manufacturers Association, crude rubber consumption in the United
States in November 1930 amounted to 23,479 long tons as
compared with 27,271 long tons in October last of crude
rubber imports in November totaled 31,765 long tons, as
against 43,719 long tons in the preceding month.
Crude rubber on hand in transit overland on Nov. 30
1930 amounted to 189,925 long tons, compared with 184,701
long tons at the end of October. Crude rubber afloat for
United States ports on Nov.30 1930 totaled 52,538 long tons,
against 51,122 long tons on Oct. 31 last.
To Cut Rubber Output 20% in 1931.
The Now York "Sun" of last night (Dec. 19) reported
the following from Batavia, Java (Associated Press):
A telegram from Medem,Sumatra, to-day said that the Societe Financiere
had decided to reduce its production of rubber next year by 20% and to
surplus
discontinue tapping rubber trees in low producing areas. The
labor will be employed in the palm oil estates.
Typographical Union No. 6 Rejects Appeal of Employing Printers' Association to Forego Pay Rise.
Typographical Union No. 6 has voted overwhelmingly
against the proposal of the Employing Printers' Association
to forego a wage increase of Si a week which the union and
several other printing crafts in the job printing industry
were scheduled to receive on Jan. 1, it was reported on
Dec. 15. The New York "Times" of Dec. 16, from which
we quote, added:
The Employers' Association recently suggested to the seven unions that
a moratorium be declared on the $1 wage increase and the unions decided
to vote separately on the matter. Some have voted in favor of the proposal, it was said, and some, including "Big Six," have turned it down.
One or two have not yet voted.
The unions will meet in a few days and formulate their report to the
on the situation.
employers, after which the latter may Issue a statement
to the wage
Had the unions voted unanimously to withhold their right
the employers,
to
according
would,
it
Increase, affecting 20,000 men,
year.
have resulted in a saving to them of approximately $700,000 next
that deThe request was served on the unions because the employers felt
.
giving
in
employment
them
g
pressed business conditions were handicappin
Pressal
The unions included in the proposal were Typographic Union 6,
19, Paper
men's Union 51, Press Assistants' Union 23, Paper Cutters
6.
Handlers and Sheet Straighteners 1 and Mailers' Union
Agricultural Yield of 1930 —The Season's Grain
and Other Farm Productions—Farm Prices—Total
Value of Agricultural Products.
The Crop Reporting Board of the United States Department of Agriculture made public on Dec. 17 its estimates of
the acreage, production and value (according to current farm
prices of Dec. 1) of the important farm crops of the United
States in 1930 and 1929, based on the reports and data furnished by crop correspondents, field statisticians and cooperating State Boards (or Departments) of Agriculture and
Extension Departments. This report shows that the total
value of all agricultural products in 1930 is placed at $6,274,824,000, as compared with $8,675,420,000 in 1929 and
Shipments of Crude Rubber from Ceylon in November $8,495,788,000 in 1928. This year's farm crops, therefore,
Below October Figures.
are valued at 82,400,596,000 less than last year and $2,220,Shipments of crude rubber from Ceylon during No- 964,000 less than two years ago. The comments and figures
vember totaled 6,275 tons, as compared with 7,605 tons in follow:
The value of crops produced in the United States this year shows a total
October, according to cables to the Rubber Exchange of
to the that is $2,400,000 below the value of the crops produced last year, accordCeylon
from
Shipments
16.
Dec.
on
York
New
DEC. 20 1930.1
FINANCIAL CHRONICLE
tug to the December crop report of the United States Department of Agriculture, which gives revised estimates of the acreage and production of the
various crops and valuations based on the prices which farmers were receiving on the first of December of each year. This report places the value
of the 1930 crops at $6,274,824,000 compared with the $8,675,420.000
valuation of the 1929 crops. This decline in the value of the crops produced
was caused chiefly by the widespread decline in prices but was accentuated
by the decrease in production that resulted from the drouth.
In round figures crop production in 1930 was only 95% as large as it was
last year and on Dec. 1 the portion being sold was moving at prices averaging
only 76% of those being secured a year ago. The valuation of this year's
crops is thus only about 72.3% of the crop valuation a year ago. After
allowing for losses from crop failure, the area of field crops harvested this
season is estimated at 366,507,000 acres, an increase of a half of 1% from
the acreage harvested last season. Yields on the harvested acreage averaged
5.4% below the rather low yields secured last year, 8.9% below average
yields during the past 10 years and below those of any recent year except
1921. Yields were particularly low in an area extending from Maryland
southwest into Texas, where the drouth began early. In six States of this
region yields secured from the reduced acreages harvested were only 57 to
71% of the 10-year average. Yields were also low in Montana and in nearly
the whole area north of the Ohio and Missouri Rivers except in Wisconsin,
Minnesota and eastern North Dakota. Yields were best in New England,
In a few southeastern States, in mostof Nebraska and Colorado and in most
of the area west of the Rocky Mountains.
The decline in prices has affected nearly all crops and all parts of the
country, but has most severely affected crops produced for export and sold
on a world-wide market. On Dec. 1 prices of the 21 principal crops averaged
100.2% of the 5-year pre-war average compared with 131.1% a year ago, a
decline of nearly 24%. Crop prices now average lower than in any December since 1915 and wheat,rye, and barley are all bringing lower prices than
in any December since 1899.
Wheat production was 5.2% heavier than it was last year and the value
of the crop decreased from $843,000.000 to $517,000,000,a decrease of39%•
With cotton production only 4% less than last year the value of the crop,
including both lint and seed, shows a decline from $1,418,000,000 last
year to $811.000.000 this year, a decrease of $607,000.000 or 43%. Potato
production was about 1% greater than last year, but the value of the crop
declined from nearly $470,000,000 last year to $326,500,000 this year, a
change of $143,000,000, or 30%. Tobacco production was 1% less than it
was last year and the value of the crop shows a decline from $283,000,000
to $217.000,000, a reduction of $66,000.000 or 23%.
Rye shows a reduction of 42% in value, buckwheat, rice and flaxseed
all show declines of 20 to 32%. The principal fruit crops show a decrease
In value of $107,614,000 or 21% and vegetables other than potatoes are
lower•in value by $25,484,000 or 7.6%. The combined value of the bean.
peanut,cowpea,soybean and velvet bean crops is estimated at$155.145,000,
a decrease of 21% from last year. The only important increases in value
are shown by some of the sugar crops increased in production sufficiently
to offset the decline in price. The combined value of the various sugar
and sirup crops is $116,476.000, an increase of5% over the value last year.
Prices of livestock and livestock products are 18% lower than they were
a year ago and present returns from feeding livestock are correspondingly
reduced. As a result corn, oats, and barley are selling at lower prices
than a year ago, notwithstanding the 11.6% reduction in production of
feed grains and the acute shortage that exists in parts of the drouth area.
The value of the corn crop is $1,378,874,000 compared with $2,042,893,000
a year ago, a decrease of 8664,019,000 or 32.5%. The value of oat, barley
and grain sorghum crops combined is $638,596,000 compared with $772,037,000 last year. There was a 16.6% decrease In hay production and a
sharp increase in market prices in many areas but so large a proportion of
the crop is in low priced areas this year that the average value per ton shows
an increase of only a few cents and the total value of the crop is lower by
$202,000,000 or 15%.
All Wheat.
Although wheatfarmers harvested 3.8% less acreage in 1930 than in 1929,
they secured a relatively high yield per acre and produced a total wheat
crop of 850,965.000 bushels, which is 5.2% larger than the 1929 crop of
809,176.000 bushels. Adding to the 1930 crop the carryover of old wheat
from last season, the total supply for the current season was about 1,126.000,000 bushels which was 70.000,000 bushels or 6.5% larger than the total
supply of the preceding season.
On the basis of the Dec. 1 farm price the total value of this year's crop
was $517.407,000. The value of the 1929 crop was $843.030,000. The
Dec. 1 farm price of 60.8 cents per bushel for the 1930 crop is the lowest
price reported on this date since 1899 when it was 58.6 cents. The current
price represents a decline of 43.4 cents from the price of a year ago which
was 104.2 cents per bushel.
Reports from farmers have indicated intentions of feeding to livestock
some 236 million bushels of wheatfrom their 1930 crop. If carried out, this
quantity would represent an increase of about 146 million bushels compared
with what was fed from the 1929 crop and is an amount slightly higher than
the total U. S. exports of wheat and flour last season.
Although wheat exports in recent months have declined sharply on account
of the relatively higher wheat prices in this country compared with world
wheat prices, the indicated wheat feeding program of farmers would, if
carried out, be likely to result in some reduction of the carryover of wheat
at the end of the present season as compared with the carryover from last
843311011.
Winter Wheat.
The harvested acreage of the winter wheat crop was about 4% smaller
than that of last year, as the result of a heavier abandonment in 1930.
However, yields per acre in 1930 averaged 15.7 bushels compared with
14.4 bushels in 1929 resulting in a 1930 crop of 604,337.000 bushels or about
5% larger than last year's production.
In the West North Central States. including Kansas, about the same
area as last year was harvested, and an average yield per acre of 16.0 bushels
was secured, which was 14% higher than in 1929. Production in these
States aggregated 377,182,000 bushels compared with 331,231.000 bushels
last year.
The South Central States, including Oklahoma and Texas, harvested an
acreage about 10% smaller than that of last year and secured yields that
were about 14% below those of 1929. Production in these States was
only 69.251.000 bushels compared with 89.175,000 bushels last year.
Production also decreased in the Western States where the harvested
acreage was 6.6% smaller, but average yields were about 1% larger than
in 1929. In these States the 1930 crop was 95,427.000 bushels compared
with 101,274,000 bushels in 1929.
Prices to farmers on Dec. 1 had dropped to the lowest levels in many
years. the lowest prices occurring in the larger surplus producing states.
The North Central States averaged 61.4 cents per bushel compared with
81.05 a year ago; the South Central States averaged 67.4 cents and the
Western States 59.2 cents per bushel compared with $1.04 and $1.04
respectively a year ago.
3953
The total farm value of the 1930 winter wheat crop, using Dec. 1 farm
estimated at $388,627,000 compared with $613.621,000 for the
1929 crop and $599,207,000 for the crop of 1928.
prices, was
Durum Wheat.
The industrial production of 55,655,000 bushels of durum wheat this year
compares with 54,190,000 bushels harvested in 1929. Acreage harvested
in 1930, while about 16% smaller than that of last year,returned an average
yeild of 12.0 bushels per acre or about 22% larger than the relatively low
acre yield of 9.8 bushels in 1929.
The Dakotas produce the large bulk of the durum wheat crop and account
for 52,040.000 bushels of the present total compared with their 1929 production of 50,766.000 bushels.
The farm price of durum wheat on Dec. 1 was much lower than either
that of other spring wheat or winter wheat, averaging only 45.1 cents per
bushel. A year ago it was reported at 88.1 cents. The total value of the
durum crop declined from $47,762,000 in 1929 to $25,113,000 in 1930.
Spring Wheat.
The production of spring wheat other than durum is estimated at 190,963,000 bushels an increase of about 7% over the 178.773.000 bushels
produced last year. After allowing for abandonment the acreage harvested
Is estimated at 15.902.000 acres or almost exactly the same as the acreage
harvested last year. The production of spring bread wheat in Minnesota,
North Dakota, South Dakota and Montana is approximately 6% larger
than the 1929 production.
The United States average yield is 12.0 bushels per acre as compared
with 11.3 bushels in 1929, both crops being much below the 10-year average.
Drouth in the heavier producing sections was a factor in both seasons but
was less general and less severe in 1930 than in 1929. Dec. 1 farm prices
averaged 54.3 cents compared with 101.6 cents a year ago.
The total farm value of the crop in 1930, based on the Dec. 1 price of
54.3 cents per bushel was $103,667,000 as compared with $181,647,000 for
the smaller 1929 crop.
Feed Grain Crops.
Nearly one-half of the total crop acreage of the United States is devoted
to corn, oats, barley and grain sorghums, which are grown chiefly for feeding livestock. The combined tonnage of these grains produced in 1930
was 11.6% less than in 1929. and 15.0% less than the average of the five
years, 1924-1928. Production of corn is 22.9% below the 5-year average;
grain sorghum, 32.4% below; oats, 2.3% above; and barley 35.6% above.
Corn and grain sorghum suffered from the extensive drouth of mid-summer,
while oats and barley were largely harvested before the drouth became
severe.
Corn.
The 1930 corn crop is the smallest since 1901. As in that year,low yields
are due largely to drouth, which was exceptionally severe in the southern
third of the Corn Belt and of moderate extent over the remainder.
Production is estimated at 2,081,048,000 bushels, which is 20.3% below
the production of 2,614,132,000 bushels in 1929, 26.1% below 1928, and
22.9% below the 1924-1928 average production. This estimate relates
to the equivalent production on an ear corn basis of the entire acreage,
whether husked or snapped, cut for silage or forage, or hogged down or
grazed. The estimated production of husked and snapped corn is 1.743,795,000 bushels, 20.6% less than in 1929 and 22.6% below the 5-year
average. The revised estimate of acreage for all purposes in 1930 is 100.829.000 acres, an increase of 3.0% above the 1929 acreage of 97,856.000
acres, and 0.7% above the average corn acreage during the previous5 years
Equivalent yield per acre is estimated at 20.6 bushels, compared with 26.7
in 1929,und the 10-year average of 28.2 bushels. The Dec. 1 farm price of
corn for grain was 66.3 cents per bushel compared with 78.1 cents on that
date in 1929. Applying these prices to the total production for all purposes,
the farm value of the 1930 crop is $1,378,874,000, compared with $2,042.893,000 for the 1929 crop.
Acreage of corn cut for silage increased from 4,306,000 acres in 1929 to
4.766,000 acres in 1930. Lower yields per acre of silage corn were general,
however, and production in 1930 was 28,956,000 tons compared with 29,987,000 tons in 1929 and 31,579.000 tons in 1928.
The acreage of corn hogged down, grazed and cut for forage is estimated
at 11,362,000 acres compared with 10.882.000 in 1929. In the States more
severely affected by the drouth. actual total abandonment of corn acreage
was small, since farmers in this area conserved every possible acre as feed
for livestock in one form or another. A very large acreage of corn stover
was utilized as a substitute for hay, but reports to the Department indicate
that on such fields the ear corn was first picked. Acreage of such stover
corn is included in the estimate of corn for grain and not in the estimate
of corn hogged down, grazed, and used for forage.
Oats.
The early spring was generally favorable for seeding oats so that an
ncreased acreage was planted and the crop secured a good start. In most
States the crop was too far along to be seriously injured by the drouth and the
Yield per acre averaged 33.7 bushels compared with 30.7 bushels in 1929
and an average of 31 bushels during the preceding 10 years. In the South
and from North Dakota westward to the Rocky Mountains, however,
yields averaged rather poorer than usual. Although a larger acreage was
cut for hay in the drouth area than in any recent year, the acreage harvest
for grain totaled 41,598,000 acres, an increase of 4% over the acreage for
grain in 1929. The total crop is estimated at 1,402,000,000 bushels compared with 1,288,000,000 bushels in 1929 and an average of 1,372.000.000
bushels during the past five years.
In the main producing areas, the quality was excellent, the grain being
of good color and heavy in weight.
Barley.
The acreage of barley in 1930, while slightly below that of 1929 and 1928,
was greater than in any previous year. Yields were generally below the 10year acreage in the South Atlantic and South Central States, but were not
seriously affected by drouth in the Northern and Western States where
the major portion of the acreage is located. As a result, the yield for the
entire country was 26.2 bushels, 3.0 bushels per acre higher than last year
and 1.2 bushels higher than the average for the preceding 10 years. The
estimated total production of 325.893,000 bushels was the largest on record
xcept that of 1928. The December average price to growers was 39.6
cents per bushel. On the same date last year, It was 55 cents a bushel,
hence the 1930 crop, larger by nearly 8% had approximately 22% less
value.
Grain Sorghums.
The production of kafir, mile, feterita and other grain sorghums for all
eureeses is estimated as equivalent to 86,622,000 bushels in 1930. which is
14.1% less than the 100.845.000 bushels produced in 1929. and 32.4%
below the 5-year average. The acreage in 1930 is estimated at 6,180.000
acres, an increase of 4.5% over the 5,921,000 acres grown in 1929. Low
yields per acre because of drouth in Oklahoma, Texas and New Mexico
account for the decreased production in 1930. The farm price of grain
FINANCIAL CHRONICLE
3954
sorghums on Dec. 1 applied to the total equivalent production gives an
indicated value of $55,486,000 for the 1930 crop and $71,617,000 for the
1929 crop. Of the total production ofgrain sorghums in 1930 about 54,845.000 bushels were in the form of threshed grain or theequivalent in heads.
compared with 63.484.000 bushels in 1929. On the acreage harvested for
forage, production is estimated at 4,274,000 tons in 1930 compared with 4,560,000 tons In 1929.
Rye.
Rye production for 1930 is estimated at 50,234,000 bushels which is an
increase of 8,323.000 bushels, or nearly 20%, over the very low production
of 1929 but 1.2% below average production during the last 10 Years.
The rye acreage cut for grain was 3,722,000, exceeding that of the previou*
year by 391.000 acres, or nearly 12%. The yield per acre was also better
than in the previous year, being 13.5 as compared with 12.6 bushels in 1929.
This yield is approximately the same as the average of the 10-year period,
1919-1928. Yields were above average in nearly all of the Atlantic and
North Central States, and below average in most of the South Central and
far Western States. Owing to relatively low prices, the 1930 crop value.
of $20,895,000 is the lowest of any year since 1906, and more than $15,000,000 less than the value of the 1929 crop. The value is based upon the
prevailing price paid to growers on Dec. 1, which was 41.6 cents per bushel.
This price is only 48% of that paid on Dec. 1 1929 and is the lowest
for the corresponding date in any year since 1896. The quality of the rye
crop was below average, especially in the important rye States of the West
North Central group where extremely hot weather in July resulted in a
considerable amount of shrunken grain.
Buckwheat.
The summer drouth was disastrous to buckwheat. Only a small acreage
could be planted and part of it was lost. The 658.000 acres harvested was
10% less than the small acreage of last year. It was the smallest acreage
of buckwheat harvested in 30 years, the yield of 13.6 bushels per acre was
the smallest in 42 years and the total production of 8,975,000 bushels
makes it the smallest buckwheat crop since 1883. Notwithstanding this
extreme shortage, buckwheat was selling for only 84 cents per bushel OD
Dec. 1, which is below the average price of recent years and considerably
less than the price of 95 cents of a year ago.
Rice.
Rice acreage was increased this year about 11% with a total harvested
area of 960,000 acres. Although the drouth caused a shortage of water
for irrigation in some areas the season was generally favorable. The yield
of 43.1 bushels, though below the 46.6 bushel yield of last year, was above
average. The total crop of 41,367,000 bushels is about 900.000 bushels
greater than last year, but approximately 1,100.000 bushels loss than the
average of the past 4 years during which the production has averaged between 40 and 45 million bushels. The increase over last year is fully accounted for by the million bushel increase in production of Japanese varieties
of rice in California. The Increase of about a million bushels in Texas
was offset by a corresponding decrease in Louisiana. Arkansas production
was about the same as last year.
Flaxseed.
Substitution of flax acreage for wheat by farmers in spring wheat States
was largely responsible for an increase of about 29% in the 1930 harvested
acreage compared with that of last year. 3,946,000 acres were harvested
in 1930. The seeded acreage was still larger, drouth having resulted in considerable abandonment of flax acreage in parts of the Dakotas and Montana.
However, drouth was not quite as damaging to yields as in 1929 as indicated by the average of6.0 bushels in 1930 compared with 5.6 bushels last
year.
The large 1930 crop of 23,682,000 bushels will not return flax growers
as much money as the 17,049.000 bushels they harvested in 1929. The
Dec. 1 farm price in 1930 averaged $1.40 per bushel compared with $2.84
per bushel in 1929. Total value of the flax crop in 1930 was but $33,097,000
eompared with $48.459,000, the value of the 1929 crop.
Cotton Lint and Seed.
In the Department's cotton report released Dec.8 cotton production in
the United States was estimated at 14.243,000 bales of 500 pounds gross
weight. This is 585,000 bales, or 3.9%,less than the 1929 crop, and about
5% less than the average production of the five years, 1924-1928. The
1930 yield of 150.8 pounds per acre is 2.7% below the 1929 yield of 155.0
pounds, and 2.8% below the 10-year average yield of 155.1 pounds.
The 1930 season was markedlby unusually hot dry weather In most of the
Belt from Alabama west, amounting to severe drouth in many sections.
Curtailment of the cropfrom this cause was particularly severe in Arkansas,
Oklahoma and Texas, with the full extent of the reduction not apparent
until December. Mississippi, Louisiana, Tennessee, and Missouri are
other States affected by drouth, with estimated production considerably
below last year. The South Atlantic States, having had ample rainfall in
most sections, are in sharp contrast to the remainder of the Cotton Belt
proper and for this group of States, from North Carolina to Alabama,
production and per acre yields are considerably above last year and above
average.
Bool weevil damage was negligible, due to low temperatures during the
winter months,and dry, hot weather during June, July and August. While
there were a few weevils in nearly all sections of the Belt, only in the Carolinas were they present in considerable numbers,
The average price being paid producers for cotton lint on Dec. 1 1930
was 9.46 cents per pound, compared with 16.4 cents per pound on Dec. 1
1929. Applying these prices to the estimated 1930 production of 14,243.000
bales, and the final 1929 production of 14.828.000 bales, places the indicated farm value of lint of the 1930 crop at $674.044.000 and of the 1929
crop at $1,217,829,000. The greater part of this 45% loss in total value is
due to the much lower prices being paid for the 1930 crop. The Southeastern States present the most favorable comparisons with last year.
although all States show material losses in total value.
Cotton seed prices to producers on Dec. 11930, averaged $21.62 per ton
as compared with $30.33 on Dec. 1 1929. Applying these prices to the estimated production of seed of 6,327.700 tons in 1930 and 6,590,000 tons
in 1929, the farm value of the 1930 seed Is $136.789,000 and of the 1929
seed, 5199,881,000.
Hay.
A short hay crop was produced in 1930 because ofreduced acreage and low
yields per acre. The reduction in acreage was brought about by loss of
new seedings due to dry weather in the late summer of 1929 and to winter
injury during the winter 1929-30 and by plowing up of meadows because
of the large carry-over of hay. The low yields per acre resulted from thin
stands and drouth during the summer of 1930.
The total 1930 hay crop is estimated at 94,767,000 tons, grown on 72,609,000 acres, with an average yield of 1.31 tons. In 1929, 113,658.000
tons were produced on 74,203,000 acres, with an average yield of 1.53 toss.
The average farm price on Dec. 1 was $11.98 per ton, 20 cents above the
price on Dec. 1 1929, in face of the general decline in foam prices and the
Fa". 131.
general commodity price level. The total value of the hay crop, computed
at these prices, was $1,135,294,000 for the 1930 crop and $1,336,946,000
for the 1929 crop.
Production of tame hays of all kinds in 1930 is estimated at 82,656,000
tons compared with 100.893.000 tons in 1929. Production of hay from
prairie, marsh, and other native or wild grasses in 1930 was 12,111,000
tons, compared with 12,765,000 tons in 1929.
The alfalfa acreage is located largely in the prairie and mountain States
outside the 1930 drouth area and production of alfalfa hay in 1930 was
28,587.000 tons only 4% below the production of 29.745,000 tons in 1929.
Clover hay on the other hand, being produced in the Central States,suffered
severly from the drouth, and production in 1930 was 8,005,000 tons, compared with 13,784,000 tons in 1929. Mixed clover and timothy production
was also short, with 19.335.000 tons in 1930, compared with 26.581,000
tons in 1929. The timothy hay crop in 1930 was 7,669.000 tons; in 1929.
10,028,000 tons. Sweet clover hay production in 1930 is estimated at
1,895,000 tons compared with 2,368,000 tons in 1929.
In every year of low production of the ordinary kinds of hay, increased
acreages of small grains are cut green, and cured for hay. In 1930 this procedure was again followed and 4,023,000 acres were cut to produce 5,315.000
tons. Last year, 3,420,000 acres produced 4.410.000 tons. Soy beans,
cowpeas and peanuts were also used to a greater degree in 1930 and acreage
was increased to 4,365,000 acresfrom 4,056.000 acres in 1929. Yields were
low, however, and production was 3,864,000 tons compared with 4,290.000
tons in 1929. Production of millet, sudan, red top, and miscellaneous
hays including old meadows, was 7,712.000 tons in 1930 compared with
9,265.000 tons in 1929.
Sweet sorghum is utilized for forage and hay largely in the southern
States. Production in 1930 is estimated at 3.876.000 tons compared with
4,395,000 tons in 1929. This crop is not included in the estimates for all
hay The value of the crop in 1930 was $32.837.000 compared with $36,842,000 in 1929.
Alfalfa Seed.
An alfalfa seed crop of about 920,000 bushels has been harvested this
year, an Increase of 16% over production last year and an increase of 3%
over the five-year average. In the West, yields were variable, ranging from
exceptionally high to one of the lowest yields on record. In the central
States the dry weather favored the development of seed and a substantially
increased acreage was harvested. Growers are now receiving an average of
$9.85 per bushel compared with 310.78 at this time last year.
Hay Seeds.
Production of red and alsike clover seed is only slightly over one-half as
large as in 1929. The acreage cut for seed was much less in nearly every
important producing State and yields also are lower than in 1929. Production is given at 1.459,600 bushels, compared with 2,523,000 bushels in
1929. The present estimate represents a considerable increase over the
preliminary report as of Nov.1. Reports receievd during November indicate
a large number of new growers who produced no seed in 1929, but did
produce seed In 1930. Farm price on Dec. 1 is estimated at 511.89 compared with $10.19 on Dec. 1 1929.
Sweet clover seed production in 1930 is only about three-fourths as large
as in 1929. The crop in 1930 is estimated at 656,400 bushels compared
with 867,700 bushels last year. Average farm price on Dec. 1 1930 was
$3.54 per bushel; on Dec. 1 1929,$33.65 per bushel.
Late season reports for timothy seed also Indicate a large number of
new growers, and the preliminary estimate on Nov. 1, of 1,228,500 bushels
has been increased to 1.479.100 bushels, which is slightly larger than last
year's crop of 1,448,400 bushels. The Dec. 1 farm price was $2.87 Per
bushel compared with $2.23 on Dec. 11929.
The crop of leapedeza or Japanese clover seed was reduced by drouth
In 1930 to 96,500 bushels, about half as large as last year's crop of 185,000
bushels. Farm price on Dec. 1 1930 was $2.77 compared with $3.17 on
Dec. 11930.
The farm prices of all hay seeds have suffered smaller declines from
a Year ago, in the light of the general decline in commodity prices, than
might be expected from relative production, because of the greatly increased
seed requirements brought about by the heavy loss of seedings this year.
Sweet Potatoes.
Sweet potato production this year is small, 71,154.000 bushels compared
with 84,521,000 bushels in 1929. It is about three million below the fiveyear average. The New Jersey crop is slightly larger than last year, but the
Chesapeake Bay area produced little more than half as much as last year.
The main crop of the South is about 15% below production last year. For
the country as a whole the Dec. 1 prices averaged 90.6 cents per bushel this
year compared with 94.4 cents on that date last year.
Sugar Beets.
The increased production of sugar beets in 1930 over 1929 was duo not
only to a considerable Increase in acreage but to a season which was very
favorable in the Western areas and fair even in the drouth-affected areas
farther east. The beets withstood the drouth fairly well, and early in
the fall they were favored by rains, followed by an unusually long growing
season. The first killing frost of the fall came later than usual.
The beet crop of 1930 is now estimated at 9,175,000 tons, compared with
7.318,000 In 1929 and the average of 7.389.000 for the five years 1924-28.
The average yield per acre in 1930 was 11.5 tons, as against 10.6 in 1929.
and the five-year average of 10.5.
In nearly every Important beet-growing State, the acreage of 1930
was greater than in 1929, and the total for the United States showed an
increase of 111,000 acres. Part of this increase was due to a larger percentage of the planted beets being harvested in 1930 than in 1929. but
most of the increase was due to larger plantings.
The sugar made from the beet crop of 1930 is estimated at 1,185.000
tons, compared with 1,018,000 in 1929 and the five-year average of
1,011.000.
Sugar Cane and Sugar.
The replacement of older varieties of cane by disease-resistant varieties
in the Sugar Belt of Louisiana has revived the production of cane sugar
In the United States. The output in 1930 amounted to 208,000 tons,
compared with 200,000 in 1929. 132,000 in 1928, and 71.000 in 1927.
The 1930 production was the largest since 1922.
In spite of the drouth, yields of cane in 1930 averaged 17 tons per acre,
compared with 18.8 in 1929. 16.2 in 1928 and 13.4 in 1927. The dry
season of 1930 was alleviated by rains in the fall and by temperature@ in
October which were favorable to the ripening of the cane and the formation
of a high sugar content.
The acreage of cane used for sugar has increased materially in the past
two years, amounting to 171,000 in 1930 and 155,000 in 1929. 115.000 in
1928 and 73.000 in 1927. The cane of 1930 was of good quality, producing an average of 143 pounds of sugar per ton of cane compared with
an average of 137 in 1929.
Sugar Cane for Sirup.
Rains late in the season offset to some degree the injury done by the
drouth of 1930 to the sugar cane which was grown for making sirup. The
Dinc. 20 1930.]
FINANCIAL CHRONICLE
production of cane sirup in 1930 amounted to 19.427,000 gallons. compared
with 22.114.000 in 1929, and the average of 20.792,000 for the five years
1924-28. The yield of sirup in 1930 averaging 167.5 gallons per acre of
cane, was slightly below the five-year average, and below all but two
previous years of the decade.
Sorgo Sirup.
In spite of a considerable increase in the acreage of sorghum for sirup,
production in 1930 amounted to only 24,132,000 gallons, which was 2.000,000 leas than production in 1929 and 4,000,000 below the five-year average.
The acreage in 1930 was 384,000. or 38,000 more than in 1929 and 16.000
above the five-year average, but the season was very unfavorable, drouth
ininring the crop seriously and was alleviated only slightly by some rains
late in the season. The yield per acre of sirup averaged 62.8 gallons in
1930, compared with 75.7 in 1929. and the average of 76.9 in 1924-28.
Mapte Sugar and Sirup
There has been a general decline during the past decade in the number
making maple sugar and sirup. The season
for
tapped
of maple trees
of 1930 was, however, exceptionally favorable. The number of trees
tapped was 14,421,000. compared with 14,130,000 in 1929, and an average
of 14,885,000 during the previous five years. As a result of the long
season and favorable temperatures, the total production of maple sugar
and sirup this year was equal to 34.404.000 Pounds of sugar, compared
with 22,466,000 in 1929 and an average of 31.140.000 during the previous
five years. Productioin in 1930 was 53% greater than in 1929 and was
larger than in any year since 1924.
Potatoes.
The 1930 potato crop is now estimated at 361,090,000 bushels which is
only slightly alrger than the 359.048,000 bushels harvested in 1929.
Larger differences however are shown by the geographic divisions composed of various States. The North Atlantic States with a crop of 116,867,000 bushels show an increase of 2.6% over the 1929 production; the
South Central States with a crop of 22,654,000 bushels show 2.7% increase
compared with last year while the Western States with a production this
year of 71,556,000 bushels show an increase of 29.4% compared with 1929
Decreased production compared with last year occurred in the North
Central and the South Atlantic States which show respective ldecreases
of 11.9% and 12.2% respectively. The largest decrease in bushels occurred
in the West North Central States where a 1930 crop of 112,554,000 bushels
compares with a 1929 production of 125,098.000 bushels.
The total harvested acreage of 3.394,000 acres in 1930 was about 1.7%
larger than the acreage harvested last year but was largely offset by an
average yield per acre that was 1.2 bushels lower than the yield per acre
In 1929.
The 1930 Dec. 1 farm price of potatoes averaged only 90 cents per bushel
compared with the average of $1.31 per bushel a year ago. This accounts
for the total balue of the 1930 potato crop being placed at $326,457,000
compared with the $469.837,000 value placed upon the 1929 crop.
Tobacco.
Notwithstanding an increase of 334% in the acreage of tobacco harvested
this year compared with last, the production is estimated to be 1% less.
1,510,308.000 pounds in 1930 compared with 1,524,677,000 pounds in 1929.
Flue cured tobacco production is estimated at 790,950,000 pounds this
year. an increase of 40,051,000 pounds compared with 1929.
Fire cured types of Virginia. Kentucky and Tennessee were severely
affected by drouth, and are estimated to produce a total of 158.559,000
pounds compared with 183,087,000 pounds a year ago. Damage to quality
was general, but greatest in Virginia.
Burley tobacco production is estimated at 305,566,000 pounds compared
with 334,566,000 pounds a year ago. This reduction of 9% in production
Is from a harvested acreage 6% greater than that of 1929.
Maryland, with an increase of 3% in acreage, is estimated to produce
13,190,000 pounds this year, compared with 24,750,000 pounds in 1929.
Among the dark air-cured types, Green River and Virginia sun cured
show decreases, and one-sucker a slight increase.
Cigar tobacco of all types combined is estimated at 176,814,000 pounds
In 1930 compared with 168,171,000 pounds a year ago. A decrease of nearly
113.6 million pounds in the Pennsylvania seeclleaf district is slightly more
than offset by increases in the Miami Valley.
Increases in the Connecticut Valley and Wisconsin northern district
account for a net Increase of 12,015,000 pounds in the production of binder
types, total production this year being estimated at 92,919,000 pounds.
A decrease Is indicated in the production of shade-grown wrapper types
in New England, Georgia and Florida, thet,otal this year being estimated at
11.530,000 pounds compaed with 15,159.000 pounds in 1929
3955
suffering from the drouth this year are responsible for a large part of the
increase, cowpeas having been planted extensively as a catch crop to furnish
needed grain and forage, owing to the partial failure of the corn crop. The
unf..vorable conditions cut the yields, so that the estimated production of
4.563,000 Inishels is only 8% greater than last year. The price or cowpeason
Dec. 1 is reported at $2 as against $2.29 per bushel last year.
Hops.
A reduction of 22% in the harvested acreage of hops in the three Pacific
average yield per acre resulted in a delower
a
with
together
Coast States,
crease of 9.773,000, pounds or 29%. in the production of 1930 under that of
last year. The crop of 1930 amounted to 23,447,000 pounds compared with
33,220.000 last year. The price to growers about Dec. 1 averaged 14.8
cents per pound in 1930 and 11.4 cents in 1929.
Milk Production.
Production of milk per milk cow in herds ofabout 20.000 crop correspondents on Dec. 1 1930 was reported at 12.1 pounds. as compared with 11.9
pounds on Dec. 1 1929. In the area most affected by the drouth, extending
from Pennsylvania to Oklahoma,production per cow remained below that of
a year ago, but this was more than offset by rather sharp increases in the
Corn Belt. In the Corn Belt States the increases were largely due to a
larger percentage of the milk cows being milked on Dec. 1 this year than
on the corresponding date a year ago. The tendency to milk a larger
proportion of the cows was also noticeable,to a lesser extent. in the Southern
States, but here the average production per cow milked was considerably
less than last year. In the Northeastern States, fall production, although
less than last year, has been well above any other recent year. In the
Western group of States, however, the decline during November was
considerably greater than usual.
Chickens and Eggs.
The number of hens and pullets of laying age in the farm flocks of crop
reporters on Dec. 1 averaged 84.5 per farm, or almost the same as the 84.4
average a year ago. As a result of the unusually early hatchings this
year the number of layers had been averaging higher since the early pullets
began entering the laying flock in August. The number of layers in
farm flocks shows a slight increase in the North Central States and slight
decreases in the East, South and West. The layings per farm flock on
Dec. I averaged 12.6 eggs compared with 11.1 eggs last December. This
increase is due in part, no doubt, to the relatively greater maturity of the
pullets in the laying flocks this year.
Grapes.
The 1930 grape crop was larger than the short crop of 1929 but was still
below average. Including 124,000 tons of grapes not harvested because
of market conditions, production in 1930 was 2.368,557 tons, compared
with 2,098,547 tons in 1929, and an average production of 2,338.907 for
the five years 1924-28. Production in California is estimated at 2,091,000
tons, of which 1,967,000 tons were harvested. Last year the entire production of 1,827,000 tons was harvested. Production outside of California
was 278.000 tons in 1930 and 272,000 tons in 1929. The average price
received for the 1930 crop was $18.59 per ton, compared with $26.85 per
ton In 1929. The farm value of the California crop was $31,316,000 in
1930 and $43,390,000 in 1929. The value of the United States crop was
$41,721,000 in 1930 and $56,337,000 in 1929.
Pears.
The pear crop of this year was 3,640,000 bushels larger than a year
ago; it amounted to 25,703,000 bushels, compared with 22,063,000 in
1929. The increases in the crops of New York and the Far Western
States more than offset the marked decline in the Central States. Farm
prices of pears were much lower this year than last, the average for the,
season of 1930 being only 76 cents per bushel, compared with $1.43 a
year ago.
Apples.
The apple crop is apparently only a trifle larger than the November,
harvest reports indicated, the total production being estimated at 163,543,000 bushels. The commercial apple crop or the portion sold or to be
sold for consumption as fresh fruit is estimated at 101,169,000 bushels.
or 33.723,000 barrels. The total crop is nearly 15% larger than in 1929,
but about 10% below the average crop of the preceding five years. The
commercial crop, which is this year only a slightly larger portion of the
total crop than last year is, however, about 4% above the average commercial crop from 1924 to 1928. Production is especially good in the
Western box-apple States, where the crop is about one-fourth larger than
last year, and nearly two-fifths above average. Production in practically
Beans.
all other divisions of the country except the North Atlantic States was
and was especially low in the drouth
The bean crop is a little larger than was thought earlier, being now even lower than last year's small crop,
whole the quality of the crop was better than
estimated at 22,137.000 bushels compared with the 20,707,000 bushels last areas. For the country as a
Based on Dec. 1 farm prices. the
year, which was itself a record crop. The consumption of beans has in- in 1929 but slightly below average.
worth a total of $152,548,000, or nearly
creased in recent years at the rate of a half million or more bushels annually. 1930 apple crop is estimated to be
owing to prices being nearly 30% lower.
The increase during the past year seems to have been at a much faster rate. one-fifth less than last year,
Cherries.
The Dec. 1 price of $2.40 per bushel compares with $3.78 per bushel last
year.
The production of cherries in 10 commercial important States is estiPeanuts.
timated to be 108.100 tons, compared with 84.930 tons last year. Although
The peanut crop,excluding that harvested by livestock, yielded 740.710.- certain areas in Wisconsin and Michigan lost heavily by reason of spring
year's
last
than
smaller
rather
large crop, freezes, other areas in these States supplied large production so that the
000 pounds of nuts and is 20%
but only slightly below average production during the previous five years. crop turned out to be two-fifths larger than in 1929 in Michigan. and nearly
Bemuse of low prices last year the acreage planted this year was reduced one-sixth larger in Wisconsin. New York production was more than double
about 10%. The unfavorable weather also reduced the yield per acre. that of 1929, with an especially good sour cherry crop. Production in seven
The reduction is general in all varieties. Even with this great cut in pro- Western States is only about 5% larger than last year. Colorado having
duction, the Dec. 1 price is only $3.24 per hundred pounds or about a a crop less than half as large as in 1929, while the three Pacific Coast States
tenth less than last year and a fourth lower than the five-year average. It have a combined production 10% larger.
is the lowest price for peanuts at this date in 20 years or more.
Prices received by growers were lower in all sections of the country
and as a result, the value of 1930 production is estimated to be lees than
Sou Beans.
1% higher than last year.
Excluding those not harvested for grain,show a production of 12,955.000
Cranberries.
bushels compared with 11,434,000 bushels in 1929. The area harvested.
The production of cranberries, at 570,500 barrels, is about 5% larger
1,105,000 acres, is 24% larger than that of last year, but the yield was not
to Dec. 1 have averaged lower than last
so good. The acreage of soy beans for all purposes amounted to 3,766,000 than last year's crop. Prices
estimated to be nearly one-fifth less than
acres. This included more than two million acres for hay and more than year and the value of the crop is
Massachusetts and Wisconsin crops
half a million for silage, grazing and other purposes. Increases in soy bean was received for the 1929 crop. The
New Jersey's is more than half again
ago.
year
a
as
size
same
production are most noticeable in Illinois, Indiana and Iowa. This year's are about the
more than 50% less than last
big crop was selling on Dec. 1 at $1.44 per bushel compared with $1.73 as large, while the Pacific Northwest crop was
year's production.
last year.
Peaches.
Velvet Beans.
The total peach crop of 1930 is now estimated at 53,286,000 bushels of
Grown mainly for forage and grazing in the Coastal regions of the South
were actually harvested,
Atlantic and Gulf States, were planted on an acreage slightly less this year which it is estimated that 46,910,000 bushels
California. The harvested portion
than last, and owing to unfavorable weather conditions the yield is less, the remainder being left on the trees in
of 90 cents per bushel and was valued at
so that the total production of velvet beans in the pod is only 692,000 tens, had a seasonal average price
$43,340,000. The shorter 1929 crop of 45,789,000 bushels was worth
compared with 804,000 tons last year.
$1.36 per bushel and had a total value of $62,140,000 including the portion
Cowpeas.
not harvested in California on account of market conditions.
Excluding that part of the crop not harvested for grain, were gathered
The California production of 32,836,000 bushels In 1930 shows a big
this year from 887,000 acres, an area a fifth broader than last year. States increase over the short 1929 crop of 13,334,000 bushels. Considerable in-
3956
creases also occurred in Goergia. New York, and Alabama. These increases
were in marked contrast to striking decreases In practically all of the other
important peach growing States. A large part of the decreases came in the
North Central States, where production decreased from 7.405,000 bushels
In 1929 to 1,138,000 bushels in 1930. as a result of winter infury, spring
frost, and drouth. In this group of States, Illinois with a crop of 3.600.000
bushels in 1929 suffered almost a complete failure in 1930. Near failures
occurred in the adjoining States of Indiana, Iowa and Missouri. and in
Arkansas. Oklahoma and Kentucky.
PillMs and Prunes.
The production of plums and prunessold fresh in California and the Pacific
Northwest was 143,750 tons or nearly one-fourth larger than last year.
The California crop was nearly double the short crop of 1929 while production in Washington, Oregon and Idaho was about 15% smaller. The value
of the production of the four States, is estimated to be 22% below that of
1929. Dried prune production in the same four States is estimated at
254,215 tons, which is more than half again as large as in 1929. Prices
have averaged about three-fifths lower than last year. The equivalent
of about 13,000 tons of dried fruit, included in the estimate, was left unharvested in Oregon. Further losses, not included in the production estimate, were sustained as a result of rains at harvest time cutting short the
usual harvesting period and splitting the fruit.
Fruits in General.
Spring frosts and drouth greatly reduced fruit production in the Central
States this season and for the country as a whole production per tree averaged about 6% less than usual. Total production, including some citrus
fruit that is now on the trees but that will not be picked until next summer
Is. however, about a fourth larger than last year's very light fruit crop, the
Increase being particularly marked In California, where production was
reduced last year by frost.
Production.
Crop and Year.
[Vor.. 131.
FINANCIAL CHRONICLE
Acreage.
Per
Acre.
Total.
Farm
Price
Per
Unit. Unit.
Total
Farm
Value.
Production.
Crop and Year.
Acreage.
Per
Acre.
Total.
Farm
Price
Per
Unit. Unit.
Sorgo syrup1929
346,000 75.7
26,181.000 "
1930
384,000 62.8
24,132.000 "
Maple sugar1929
814,130,000 6.12
1,706,000 Lbs.
1930
414,421,000 e.18
2,588.000 "
Maple syrup1929
814,130,000 6.18
2,595,000 Gals.
1930
414,421.000 e.28
3,977.000 "
Broomcorn1929
303,000 1312
47,200 'Tons
1930
895,000 /251
49,600 "
HODS1929
24,900 1,334
33,220,000 Lbs.
1930
19,500 1,202
23,447,000 "
Apples, total1929
142,788,000 Bush.
1930
163,543,000 "
Apples, commercial1929
29,004,000 Bbls.
1930
33,723,000 "
Peaches, total1929
45,789,000 Bush.
19300
53,286,000 "
Pears, total1929
22,063,000 "
1930
25,703.000 "
Grapes, total lt- 1
1929
2,098,547 TOM
19300
2,368,557 "
Cherries (10 States)
1929
84.930 "
1930
108,100 "
Plums and prunes, fresh (4 Sin tea)
1929
116,300 "
---1930
143,750 "
Prunes, dried (4 Sin tea)
1929160,380
"
--19300
254,215 "
Oranges (7 States)1929
____
33,839,000 Boxes
1930
47,691,000 "
Grapefruit(4 States)
1929
10,718,000 "
1930
14,153,000 "
Lemons(California)
1929
5,900,000 "
1930
7,020.000 "
Cranberries1929
28,670 19.1
546,500 Bbls.
1930
28,750 19.8
570,500 "
Pecans1929
38,005,000 Lbs.
1930
____
37.250.000 "
8
Total
Farm
Value.
$
.922
.825
24.126.000
19,920,000
.300
.302
512,000
781,000
2.07
2.06
122.65
73.81
5,376,000
8,199,000
,..
5,789,000
3.661,000
.114
.148
3,788,000
3,462,000
1.317
.933
187,984,000
152,548,000
3.74
2.68
108,327,000
90,466,000
1.357
.903
62,140,000
42,340,000
1.432
.763
31,588,000
19,611,000
26.85
18.59
56,337,000
41,721,000
164.17
130.00
13,943,000
14,053,000
46.10
29.09
5,361,000
4,181,000
149.58
56.00
23,989,000
13,509,000
3.66 123,833,000
Corn$
$
2.11 100,447,000
1929
.781 2,042,893,000
97,856,000 26.7 2,614,132,000 Bush.
1930
28,577,000
100,829,000 20.6 2.081,048,000 "
.663 1,378,874,000
2.67
Winter wheat26,142,000
1.85
1929
40,059,000 14.4 576,213,000 "
1.065 613,621,000
21,830,000
1930
.643 388,627,000
38,608,000 15.7 604,337,000 "
3.70
Durum wheat (4 St ates)21,060,000
3.00
47,762,000
1929
.881
5,525,000
9.8
54,190,000 "
25,113,000
7,154,000
1930
4,643,000 12.0
.451
13.09
55,665,000 "
Other spring wheat, U. S.5,789,000
10.15
1929
1.016 181,647,000
15,880,000 11.3 178,773,000 "
5,890,000
1930
.155
15,902,000 12.0 190,963,000 "
.543 103,667,000
5,950,000
All wheat-.
.160
1929
1.042 843,030,000
61,464,000 13.2 809,176,000 "
Farm
Production.
1930
59,153,000 14.4 850,965,000 "
.608 517,407,000
Total
Price
OatS--Farm
Crop and Year.
Acreage.
Per
Per
1929
40,043,000 30.7 1,228,369,000 "
.435 533,807.000
Value.
Unit.
Unit.
Acre.
Total.
453,973,000
1930
41,598,000 33.7 1,402,026,000 "
.324
BarleyCommercial Truck Crops1929
13,068,000 23.2 302,892.000 '
.550 166,613,000
$
$
1930
12,437,000 26.2 325,893,000 "
.396 129,137,000 Asparagus 615,893,000
1929
97,620
100
1.63
9,766,000 Crates
R901930
15,756,000
100,610
1.51
1929
41,911,000 "
36,225,000
103
3,331,000 12.6
10,403,000 "
.864
1930
20,895,000 Beans, snap 63,722,000 13.5
50,234,000 "
.416
1929
18,723,000
Buckwheat149,810 1.26
188,600 Tons 99.27
1930
17,583,000
1929
11,474,000 "
11,210,000
173,380 1.09
93.28
729,000 15.7
188,500 "
.977
1930
7,588,000 Cabbage I658,000 13.6
8,975,000 "
.845
1929
20,941,000
Flaxseed158,710 7.03
18.76
1,116,300 "
1930
19,600.000
18.93
1929
3,050,000
5.6
17,049,000 "
2.842
48,459,000
156.310 6.62
1,035,500 "
1930
33,097,000 Cantaloupes3,946,000
6.0
23,682,000 "
1.398
22,290,000
1929
107,140
16,982,000 Crates
1.31
159
Rico (5 States)18,612,000
1930
39,536,000
1.21
1929
868.000 48.6
40,482,000 "
.977
127,380
121
15,391,000 "
31,623,000 Carrots960,000 43.1
.764
1930
41.367,000 "
6,553,000
1929
.61
31,720
345
10,957,000 Bush.
Grain sorghums6,612,000
1930
.60
71,617,000
5,921,000 17.0 100,845,000 "
.710
30,530
360
10,994,000 "
1929
55,486,000 Cauliflower1930
6,180.000 14.0
86.622,000 "
.641
5,206,000
1929
.80
25,580
254
6,500,000 Crates
Cotton4,630,000
1930
.83
27,520
203
5,595,000 "
1929
45,793,000 al55.0
14,828,000 Bales 5.164 1,217,829,000
1930
45,218,000 a150.8
14,243,000 "
5.095 674,044,000 Celery14,617,000
1929
1.66
29,630
296
8,872,000 "
Cottonseed14,825,000
1930
1.48
31,840
315
10,043.000 "
1929
6,590,000 Tons 30.33 199,881,000
1930
6,328,000 "
21.62 136.789,000 Corn,sweet(cannin g)
9,254,000
1929
357,310 1.97
704,400 Tons 13.14
Hay tame8,769,000
13.25
1930
661,700 "
375,760 1.76
1929
60.265,000 1.67 100,893,000 "
12.22 ,233,385.000
Cucumbers
6.1930
58,473,000 1.41
,048,205,000
82,656,000 "
12.68
11,537.000
1929
1.34
8,639,000 Bush.
120,710
72
Hay, wild10,723,000
1930
11,740,000 "
.90
166,160
71
13,938.000
.92
1929
12,765,000 "
8.11 103,561,000
Eggplant
14,136,000
.86
87,089,000
12,111,000 "
1930
7.19
887,000
1929
3,630
166
713,000 "
1.24
All hay1930
4,220
727,000
203
857.000 "
.85
74,203,000 1.53 113,658,000 "
1929
11.76 ,336,946.000
72,609.000 1.31
1930
94,767,000 "
11.98 ,135.294,000 Lettuce1929
36,826,000
141,010
143
1.92
20,180,000 Crates
Clover seed (red and alsike)1930
33,670.000
167,610
118
19,849,000 "
1.70
25,718,000
1,643.000 1.54
2,523,000 Bush. 10.19
1929
17,354.000 Dnions1,017,500 1.43
1,459,600 "
1930
11.89
1929
18,710,000
86,850
293
25,470.000 Bush.
.74
Sweet clover seed13,148,000
1930
82,940
315
26,124,000 "
.50
3,166.000
207,000 4.19
867,700 "
3.65
1929
2,323,000 1Peas, green t165,000 3.98
656,400 "
1930
3.54
22,139,000
1929
303.840
.99
300,000 Tons 73.80
Gespedeza seed23.432.000
1930
349.580
.99
347,400 "
67.45
587,000
185,000 "
42,000 4.40
3.17
1929
96,500 "
267,000 Peppers27.000 3.57
2.77
1930
4,682,000
1929
232
4,160.000 Bush.
1.13
17,930
&Salta seed4,341.000
4,381.000 "
1930
18,760
234
.99
8,704,000
792,700 "
305,400 2.60
10.98
1929
early
Potatoes,
2.91
9,066,000
920,200
316,200
"
9.85
1930
44,387,000
34,695,000 "
1.28
1929
273,130
127
Timothy seed47,732,000
1.12
42,659,000 "
1930
331,540
129
1,448,400 "
3,234,000
391,000 3.70
2.23
1929
Ipinach
t"
1,479,100
4,243.000
2.87
355,900 4.16
1930
8,609,000
226,400 Tons 38.03
1929
70,250 3.22
by beans c6.924,000
50.17
138,000 "
1930
57,650 2.39
18,608,000 "
35,400,000
1,428,000 13.0
1.90
1929
Itrawberries
120,539,000 "
1.62
33,300,000
1,635.000 12.6
1930
43,690.000
.133
1929
200,420 1,636 327.975,000 Qts.
Dowpeaa C38,648,000
.168
1930
175,720 1,305 229,336,000 "
10,055,000 "
2.31
23,193,000
9.6
1,050,000
1929
10,488,000 "
2.00
20,966,000 Tomatos t9.1
1,151,000
1930
52,910,000
1,896.600 Tons 27.90
1929
444,870 4.26
Velvet beans52,978,000
24.84
2,132,400 "
1930
528,250 4.04
11,178,000
804.000 Tons 13.90
1,794,000 a896
1929
13.74
9,505,000 1Watermelons692,000 "
1,742,000 a794
1930
12.195,000
No./175.00
69,579,000
1929
327
212,810
Peanuts8,741,000
74,751,000 " /117.00
49,161,000
1930
322
.036
231.980
672 1,358,552,000 Lbs.
2,021,000
1929
if
iscellaneous
k"
.032
38,276,000
1,183,025.000
648
1,827,000
1930
9,023,000
1929
102,000
Beans, dry edible9,484,000
78,371.000
1930
3.78
20,707.000 Bush.
112,790
1,960,000 10.6
1929
Total
truck
crops
"
2.40
53.098,000
22,137,000
10.1
2,181.000
1930
For market (excep t potatoes)
Potatoes-273,878,000
1929
1.309 469,837.000
1,539,350
3,338.000 107.6 359,048,000 "
1929
242,826,000
326,457,000
1930
____
"
.904
361,090,000
1,638,960 ---3,394,000 106.4
1930
For manufacturelweet potatoes60,807,000
1929
"
.944
79,819,000
84,521,000
1,122,540
102.9
821,000
1929
66,375,000
64,480,000
1930
.906
71.151,000 "
1,280,030
838,000 84.9
1930
'otal all crops, with
Tobacco.185
282,764,000
Lbs.
duplications
dim.:
,524,677,000
747
2,040.300
1929
8,675,420,000
.144 216,895,000
1929
364,522,000
716 ,510,308,000 "
2,110,300
1930
1070
WM KW, Ann
R974594000
lugar beets7.08
51,824,000
7,318,000 Tons
a Pounds. b Per pound. e Total except hay. it Trees tapped. e Per tree.
1929
688,000 10.6
7.15
63,561,000 f Pounds. g Incl. some quantities not harvested: va lies and prl e+ are for portion
9,175,000 "
799,000 D.'
1930
lugar Cane (except for syrup La.)harvested. h Production Is the total for fresh fruit nice and raisins. t Includes
12,038,000 production used
3.81
3,159,000 "
1929
169,000 18.7
canning or manufacture. / Per 1,000 melons. k Includes
10,625,000 following crops infor
3.42
3,108,000 "
1930
184,000 16.9
certain States: Artichokes, iima beans, beets, sweet corn and
kale for market, pimientos for manufacture and peppermint for oil.
Iane syrup16,952,000
.767
22,114,000 Gals.
117,000 189.0
1929
State
published In the Decem11.390.00) ber 1930figures will be released at 5 p. m. Dec. 17 1930 and
.5FR
1070
1 1 ft arm 1 R7 A
10 427 000 "
Issue of "Crops and Markets."
DEC. 20 1930.1
FINANCIAL CHRONICLE
ALL WHEAT.
State.
Acreage
Harvested.
1929.
U. 8
Stale.
DURUM WHEAT.
Production.
1930. 1929. 1930.
1930.
1929.
.....m,..0..-0.,........,,...p....0.,m.2...0
§V-41v2ggsh-g2g8ggm;wasggmg..F., gm.;50g2.7.7.7.74
,
,,..6.4.6.
4.:6a,:c7,sa..-5,6na..6.-r.4
a,,i.
...
. .,tie.
...
.
..m..
m
1
Maine
Vermont
New York
New'JerseyPennsylvania
Ohio
Indiana
Illinois
Michigan__
Wisconsin _ _ _
MhmesotaIowa
Missouri ... _ _
North Dakota
South Dakota
Nebraska
Kansas
Delaware....
Maryland_.
Virginia
West Virginia
Nor. Carolina
So. CarolinaGeorgia
Kentucky
Tennessee _ _
Alabama_
Mississippl
Arkansas _ .... _
Oklahoma...
Texas
Montana....
Idaho
Wyoming
Colorado....
New Mexico_
Arizona
Utah
Nevada
Washington_
Oregon
California _
Yield
per Acre.
1,000 1,000 Bush. Bush.
Acres. Acres.
4
3 23.0 22.0
1
1 18._ 20.0
263 18.0 18.3
281
55
52 19.00 23.5
1,119 1,122 18.0 22.5
1.646 1,613 19.5 17.8
1,631 1,615 17.0 18.0
2,451 2,298 14.9 18.3
904
824 18.8 23.5
105
109 20.9 21.4
1,372 1,301 14.4 16.5
416
405 19.4 22.1
1,730 1,420 10.0 14.0
10,197 9,336 9.5 10.7
3,211 3.420 9.7 11.9
3.548 3,810 15.9 19.2
11,516 11,775 12.0 13.5
107
106 19.0 19.5
536
509 17.5 23.0
700
644 12.8 15.5
134
134 13.3 17.5
343 11.7 12.5
457
42 12.0 12.8
64
85
49 10.0 12.0
240
238 11.8 13.8
405
308 9.0 11.5
4
4 10.0 10.0
4
4 17.0 17.0
26
27 12.0 13.0
4,238 3,547 10.5 9.5
2,520 2,570 15.0 11.0
4.226 3.913 9.6 8.6
1.083 1,027 23.6 27.5
256
247 13.3 14.4
1,397 1,459 12.9 14.9
305
206 18.8 9.3
42
46 27.0 28.0
266
268 24.1 26.1
16
15 25.2 25.7
2.430 2,445 18.5 16.4
1,058 1,017 21.8 23.0
680
620 18.0 21.0
3957
Total Value,
Basis Dec. 1
Farm Price.
1929.
State.
1930.
1,000
1,000
1,000
Bushels. Dollars. Dollars.
66
138
69
20
22
20
4.800
5.565
3,809
1.222
1,285
1.063
25,236
24,371
20,201
28,716
37,227
21.818
29,058
31,048
20,630
41,952
40.493
28.772
19,336
18,994
14,118
2,331
2,409
1,692
21,525
20,804
12,367
8.937
8,554
5,797
19,880
19,546
14.699
99,807
94,920
51,038
40,840
29,001
18,929
73,275
55,902
38.658
158,862 138,053
88,945
2,067
2,358
1,612
11,707
11,068
9,014
9.982
11,200
9,683
2.345
2,370
2,392
4,288
7,539
4,674
1,152
538
705
1,318
588
794
3,568
3,284
2,988
4,811
3,542
3,542
61
40
54
92
92
68
402
351
344
44,033
33,696
19,881
39.690
28,270
19,789
38,741
33.698
16,332
24,353
28.223
14,676
3,565
1,782
3,034
16,691
21,780
11,595
5,495
1,921
1,181
1,531
1,288
1.352
6,999
6,527
4.610
386
520
403
40,085
22,627
47,902
23,391
13,615
25,554
13,020
14.688
11,067
Acreage
Harvested.
1929.
Yield
per Acre.
1930. 1929. 1930.
Production.
1929.
1930.
Total Value,
Basis Dec. 1
Farm Pries.
1929.
1930.
1,000 1,000 Bush. Bush. 1.000
1.000
1,000
1,000
Acres. Acres.
Bushels. Bushels. Dollars, Dollars.
Minn
221
200 14.3 17.0
3,160
3,400
2,876 so 1.734
3,914 3,053 9.6 11.7
N. Dak
37,574
35.720
33,441
16.431
1,360 1,860 9.7 12.0
13.192
S. Oak
16.320
11.213
6,854
Montana.._.
30 8.8 7.5
284
30
225
232 N
94
II
4 States_
5.525
4.643
9.8 12.0
54.190
55.665
47.762 w125 112
CORN.a
State.
AMMO
Harvested.
1929.
Yield
per Acre.
1930. 1929. 1930.
Production.
1929.
1930.
Total Value,
Basis Dec.1
Farm Price.
1929.
1930.
1,000 1,1,000 Bush. Bush. 1,000
1,000
1,000
1,000
Bushels. Bushels. Dollars. Dollars.
Acres. Acres.
13
13 40.0 42.0
520
546
624
546
13
13 41.0 45.0
585
533
586
614
64 41.0 43.0
2,747
2,752
67
2,884
2.752
39 39.0 46.0
1,560
40
1,794
2,106
1,794
9 42.0 42.0
9
378
378
529
416
53
54 43.0 42.0
2.279
2.268
2,507
2.381
670
657 31.1 30.0
20.837
19,710
21,462
17,739
179
175 36.0 36.0
6,444
6,300
6.508
5.985
1,309 1.322 35.5 22.0
46.470
29.084
46,470 [27.630
3,518 3,483 36.5 25.5 128,407
88.816 100,157 i 59.507
4,124 4,208 32.0 26.2 131,968 110,197
97,656 167.220
8,900 9,345 35.0 25.5 311,500 238,298 224.280 .47,745
32,928
1,344 1,384 24.5 20.5
28,372
29,306 16i 21.846
1,995 2,035 40.0 39.0
79.800
79,385
68.234
57,143
4,253 4,380 35.0 31.0 148,855 135,780
96,756
71.963
10,883 11,100 39.5 32.5 429,878 360,750 300,915 P.09.235
5,384 5,922 23.5 12.3 126,524
72,841 108,811
54.631
16,384
1,057 1,089 15.5 17.5
19,058
11,141 A 10,101
4,916 4.965 22.8 15.5 112,085
76,958
69,493 PO 36,170
9,144 9,171 26.0 25.7 237.744 235,695 164,043 '120,204
78,164
6,103 6,347 17.5 12.0 106,802
79,033
44,937
4,288
138 32.0 20.4
134
2,815
3,773 12.562
530 36.5 14.7
18,980
520
7,791
16,702
7.246
44,138
18,032
1,522 1,568 29.0 11.5
44,138
18.934
441 36.0 13.3
441
15.876
5,885
16.829 6 6.393
50,828
51,865
2,259 2,530 22.5 20.5
50,828
48,234
23,321
28,978
1,422 1,635 16.4 16.5
23,088
24.280
50,453
45,494
44,399
3,656 3,729 13.8 12.2
39,125
8,438
7,500
62' 13.5 12.0
625
7,172 6 6,750
80,207
31.417
2,938 2,909 27.3 10.8
72,988
28,904
73,600
2.944 2,915 25.0 14.1
41,102
87,712
38,225
37,464
2,676 2,810 14.0 10.5
29,505
36,715
28,325
11.5
1,730
20.0
35,300
1,765
19.895
32,829
19,497
26,348
1.882 1,788 14.0 4.7
8,404
25,821
8.088
21,476
1,180 1,109 18.2 11.0
12,199
19,328
11,345
48,320
3,020 3,141 16.0 11.6
36,436
38,173
23,683
86,127
4,533 4,941 19.0 18.5
91,408
73,208
66.728
271 12.0 12.0
3,612
301
3,252
3,034
2,146
1.944
54
59 36.0 39.0
2,301
1,827
1,611
170 14.0 21.0
2,198
157
3,570
1,888 9 2.392
23,222
1,366 1,516 17.0 24.5
37,142
17,416 123,028
215 20.0 14.0
4,180
209
3,010
3,720
12,318
41 28.0 33.0
1,148
41
1,353
1,492
1.556
589
620
20 31.0 31.0
589
19
620
44
2 28.0 22.0
2
58
87
1 51
1,824
48
1,900
50 38.0 38.0
1,879
;1.672
2,739
3,010
2,950
83 35.0 33.0
88
1 2.273
2,700
90 31.0 30.0
2,542
2,847
82
'2,349
Maine
N. Hemp
Vermont....
M3.98
Rhode.1111.......
Conn
New York
New jersey_
Pennsylvanla.
Ohio
Indiana
Illinois
Michigan
Wisconsin.__
MinnesotaIowa
Missouri
N.Dakota_._
So. Dakota
Nebraska....
Kansas
Delaware....
61,464 59,153 13.2 14.4 809,176 850.965 843,030 517,407 Maryland -Virginia
W. Virginia_
WINTER WHEAT.
No. Carolina_
So. Carolina.
Georgia
Total Value,
Florida
Acreage
Production.
Yield
Basis Dec. 1
Kentucky _ _
Harvested.
per Acre.
Farm Price.
Tennessee.- _
Alabama
1929.
1930. 1929. 1930. 1929.
1930.
1929.
1930.
Mississippi - _
Arkansas
1,000 1,000 Bush. Bush. 1,000
1,000
1,000
1,000
Louisiana
Acres. Acres.
Bushels. Bushels. Dollars, Dollars.
272
253 16.0 18.3
4,352
4.630
5.398
3.658 Oklahoma
Texas
52 19.0 23.5
55
1.045
1.222
1,285
1,063
1,112 1.116 18.0 22.5
20,016
25,110
24,219
20,088 Montana....
1.642 1,609 19.5 17.8
32,019
28,640
37,142
21,766 Idaho
1,627 1,611 17.0 18.0
27,659
28,998
30.978
20,589 Wyoming
2,270 2,088 14.7 18.0
33,369
37.584
37,040
25,933 Colorado_ _._
900
819 18.6 23.5
16,740
19,246
18.916
14,050 N. Mexico
42 24.0 22.0
39
936
924
1,030
665 Arizona
150
151 21.0 20.0
3.150
3,020
3,308
1.721 Utah
370 19.7 22.5
379
7,468
8,325
7.914
5,411 Nevada
1,720 1,410 10.0 14.0
17,200
19,740
19.436
14,608 Wash
120 14.0 18.8
94
1,316
2,016
1.283
1,048 Oregon
3,354 3,622 16.0 19.4
53,664
70.267
53,127
37.242 California_
11,476 11,735 12.0 13.5 137.712 158,422 137.712
88.716
T7 0
01.858 100.829 26.7 20.6 2.614.132 2.081.048 2.042.893 1.378.874
2,033
106 19.0 19.5
107
2,067
2,368
1.612
9,380
536
509 17.5 23.0
11.707
11.068
9,014
644 12.8 15.5
8.960
700
9,982
11.200
9.683
1,782
134
134 13.3 17.5
2,345
2,370
2.392
343 11.7 12.5
5.347
457
OATS.
4,288
7,539
4,674
42 12.0 12.8
768
64
538
1,152
705
10.0
12.0
49
850
85
588
1.318
794
2,832
3,284
238 11.8 13.8
240
3,568
Total Value,
2.988
3.845
3,542
308 9.0 11.5
405
4,811
Yield
Acreage
Production.
Basis Dec.1
3,542
4 10.0 10.0
40
4
40
per Acre.
Harvested.
61
State.
Farm Pries.
,54
4 17.0 17.0
68
4
68
92
92
312
351
27 12.0 13.0
26
402
1929. 1930. 1929. 1930. 1929.
1930.
344
1929.
1930.
44.478
4,236 3,547 10.5 9.5
33.690
44,033
19,881
37,800
2,520 2,570 15.0 11.0
28,270
39,690
1.000 1,000 Bush. Bush. 1,000
1,000
19,789
1,000
1,000
532
585 14.0 9.3
7.4486,440
6.852
Acres. Acres.
Bushels. Bushels. ;Dollars. Dollars.
2,502
520 22.0 26.0
11,440
520
13.520
10,982
4,880
122 40.0 41.0
122
6,002
7,030 Maine
3,416
2,601
95
107 13.0 15.0
1,235
1,605
1,099
44.0
8 40.0
9
360
352
252
802 N.Hampshire
190
1,043 1,147 11.5 14.5
11,994
16,632
11,154
88 37.0 39.0
2,479
67
2,852
8,815 Vermont
1,611
1,406
263
168 18.0 8.2
4,734
1,381
4.497
8 38.0 38.0
7
817 1.1azaacbusseta
266
180
304
158
42
48 27.0 28.0
1,134
1,288
1,531
2
2 30.0 35.0
1,352 Rhode Island
70
60
45
38
166
3,403
168 20.5 22.5
3,735
3,437
12
13 30.0 32.0
410
380
2,390 Connecticut__
252
229
2 26.0 24.1
4
104
48
130
979 1,077 24.9 42.0
45,234
48 New York24,377
14.139
19.903
1,210
920 23.0 22.0
27,830
20,240
28.943
40
10,930 New Jersey-42 30.0 37.0
1,200
1.554
684
746
896
806 22.0 23.0
19,712
18,538
21,880
10,752 Pennsylvania. 1,014 1.075 29.5 37.5
29,913
40,312
17.050
19,350
620 18.0 21.0
680
12,240
13,020
14,688
1,689 1.790 29.5 38.0
11,067 Ohio
49,828
22.422
64.440
22.554
1,895 1,914 28.5 30.0
Indiana
54,008
57,420
21.603
17,226
40,059 38.608 14.4 15.7 578.213 604,337 613,621
4,231 4,569 33.5 33.5 141,738 153.062
388.627 Illinois
56,695
44,388
Michigan
1,372 1.482 29.8 38.0
40.888
56.318
19,825
19.147
SPRING WHEAT OTHER THAN DURUM.
Wisconsin _- 2,470 2,470 34.5 44.0
85,215 108,680
37,495
35,864
Minnesota.- 4,212 4.338 38.5 39.5 153,738 171,351
56,883
42,838
5,997 6.145 38.0 39.0 215,892 239,655
Iowa
84,198
67,103
Total Value,
Missouri
1,535 1,781 22.0 27.5
33,770
48,978
15,872
19,101
Acreage
Yield
Production.
Basis Dec. 1
North Dakota 1,876 1,838 18.0 21.0
33,768
38,598
10.806
7,720
Harvested.
per Acre.
Farm Price,
South Dakota 2.259 2,230 28.5 29.0
64,844
64,382
21,890
13.617
Nebraska
2,480 2.485 34.8 32.2
86,304
80,017
32,796
22,405
1929. 1930. 1929. 1930. 1929.
1930.
1929.
1,197 1,385 23.6 30.4
MUMS
1930.
28,249
42,104
12,995
14,738
1,000 1.000 Bush. Bush
1,000
1,000
1,000
Delaware
4 28.0 30.0
3
84
1,000
120
48
60
Acres. Acres.
Bushels. Bushels. DoUars. Dollars.
49 31.0 32.5
47
Maryland -- 1,457
1,592
748
860
4
3 23.0 22.0
92
66
138
187
200 23.0 19.0
69 Virginia
3,841
3,800
2,573
2,280
1
1 18.0 20.0
18
20
22
West
Virginia
216
26.0 20.5
216
20
5,618
4,428
3,594
2,613
10 15.1 17.0
9
136
170
169
258
288 24.0 22.8
151 No. Carolina6,192
6,521
4,644
4,434
7
6 17.5 21.0
122
126
152
408
408 27.0 24.5
113 So. Carolina.
11.018
9,996
8.813
7,397
4
4 18.5 19.0
74
76
85
424
360 22.5 23.0
52 Georgia
9,540
7,632
8,280
6,127
4
4 16.0 15.0
64
60
70
12
12
14.0
41
188
15.0
Florida
150
84
180
142
181
208 17.5 21.0
3,168
4,388
3.453
290
218 21.5 16.0
2,839 Kentucky...
6,235
3,488
3.679 11,849
4
5 17.5 18.0
70
90
78
197
217 18.0 20.0
68 Tennessee...
4.340
3.54
2,199
2.300
66
67 19.0 21.0
1,254
1,407
1,379
119
109 19.5 17.5
2,320
1,027 Alabama....
1.763
1.908
1,221
950 13.4 15.9
1,001
13,413
15,105
14,620
33 22.0 18.0
55
1,210
920
594
8,912 Misaissippl.
404
37
35 16.5 19.5
610
612
640
186
195
26.0
25.0
4,838
Arkansas_
4.875
_
386
2,998
2,535
14.0
10 10.0
10
100
140
110
41 25.0 20.0
48
Louisiana-.
820
1,200
840
1 451
6,283 6,283 9.6 10.
59.68
64,08
61,479
lg,778
919 26.0 28.0
792
20,592
25,732
9.884
34,6n Oklahoma...
1,757 1,940 9.5 11.6
16,692
22.504
16,525
48,640
43.176
1,542 1.696 28.0 27.5
22.020
11,027 Texas
19.589
194
188 14.9 16.0
2,891
3,008
2,775
526 17.0 17.5
554
9,418
4.803
9.205
1,414 Montana....
2.864
40
40 8.7 11.0
348
440
341
143 40.0 43.0
6,040
6,149
151
2.899
229 Idaho
1,968
3,664 3,298 9.0 8.5
32,976
28,03
31,657
128 26.0 27.0
139
3,402
3,814
1,842
13,736 Wyoming....
1,225
507 25.0 29.0
563
14,075
14.703
13.371
212 31.0 33.5
6,572
212
7,102
3,155
7,646 Colorado. _ _ _
2,557
140 13.5 14.0
161
2,174
1,960
1,935
43
47
27.0
21.0
1,161
987
697
Mexico_
t, 543
960
New
312 17.0 16.5
354
6,018
5,148
5,537
15
20 32.0 35.0
480
700
384
2,780 Arizona
Ir 455
42
40 24.0 14.0
1,008
560
998
55 42.0 42.0
2,436
58
2,310
1,482
1
947
364
Utah
100
102 30.0 32.0
3,000
3,264
2 35.0 36.0
3.090
2
72
70
49
2,220 Nevada
37
13 25.0 26.0
12
300
338
390
8,977
10,080
210 47.0 48.0
191
5.296
355 ' Washington
3,629
1,220 1,525 14.0 13.0
17,080
19,825
18.959
12,464
41.0
304
41.0
11,849
289
6,980
11,697
Oregon
4,147
162
211 21.0 23.0
3,402
4,853
3,674
157 30.6 35.0
4,437
5,495
145
2,707
'
2,863 California _ _
2,363
15.880 15,902 11.3 12.0 178.773 190,963 181,647
TT 9
40.043 41.598 30.7 33.7 1.228.369 1.402.026 533.807 413.073
103.667
I
New York.-New Jersey__
Pennsylvania
Ohio
Indiana
Illinois
Michigan
Wisconsin__.
Minnesota.Iowa
Missouri
South Dakota
Nebraska
Kansas
Delaware- _
Maryland.-.
Virginia
West Virginia
No.Carolina_
So. Carolina_
Georgia
KentuckyTennessee___
Alabama --._
Misstssippl
Arkansas
Oklahoma-. _
Texas
Montana
Idaho
Wyoming
Colorado
New Mexico_
Arizona
Utah
Nevada
Washington
Oregon
California
U. El
Slate.
Maine
Vermont. -New York_ - _
Pennsylvania
Ohio
Indiana
Illinois
Michigan....
Wisconsin. _ _
Minnesota
Iowa
Missouri
N.Dakota
S. 1)akota
Nebraska
Kansas
Montana..
Idaho
Wyoming
Colorado.N. Mexico___
Utah
Nevada
Wash
Oregon
U.
a
3958
FINANCIAL CHRONICLE
Egypt Will Control Sugar Sale and Price—Government Acts
to Break Three-Man 'Trust'—Action Regarding Stock
and Bond Dealings.
The following Cairo (Egypt) cablegram, Dec. 17, is
from the New York "Times":
The Egyptian Government will soon institute a sugar regie, Henry
Naus Bey, Director General of the Egyptian sugar refineries, held a
conference of several hours yesterday with Abdul Wahab Pasha, Under.
Secretary for Finance, to fix the details of the plan of organization of
this sugar tigie.
Such a regie consists of absolute control by the government of the sale
and price of sugar refined here, with a prohibitive duty on all imported
sugar, whether raw or refined.
In the whole of Egypt there are only three men who buy up all the
sugar from the local refineries and, by forming a sort of trust, against
which there is no law in Egypt, they have been able to keep up high
prices. By instituting the regie the government will be enabled to break
the trust and lower the prices and, by levying a high tariff, importation
will be almost prohibitive, thus protecting local cultivators. The government also expects, by means of this regie, to derive an additional revenue
of from $1,250,000 to $2,500,000 annually.
To prevent a further slump in the Egyptian stock market, the Stock
Exchange Commission met yesterday in Alexandria with a Government
representative to decide upon measures to be taken. Investigations have
shown that stock and bond transactions without payment in cash have been
one of the main causes of the slump here.
It was decided, therefore, to suspend all jobbers for fifteen days, just
as was done on the Cotton Exchange last week. The commission ruled
further that all stocks and bonds must be delivered within forty-eight
hours after their sale. Every broker will be required to furnish daily
a list of the stocks and bonds in which he has dealt, specifying those he
has to deliver and those he is to receive.
British Cotton Trade in Renewed Depression--Fall in
Silver and Uncertainty of Raw Material Prices
Cause Confusion.
A cablegram as follows from London, Dec. 13, is taken
from the New York "Times":
The break in silver and the weakness in Shanghai exchange have reacted
very unfavorably on business in the British cotton market; transactions
with China have been brought almost to a standstill. There is much confusion in cotton trade circles owing to the wide fluctuations and present
great weakness of the raw material. Any idea of improvement before the
end of the year has been abandoned.
Business houses which have been carrying large stocks are faced with
serious depreciation, as a result of whieh financial difficulties in the trade
are likely soon to increase rather than diminish. Advices from the Indian
cotton trade are less satisfactory, owing to the fact that the political situation there appears to be growing worse. The position in Egypt also is
very difficult.
More than Seasonal Increase in
Activity of Cotton
Manufacturing Industry in U. S. Reported
New York Cotton Exchange Service.
by
, Maki 1.81.
which the Egyptian Ministers of Foreign Affairs and Agriculture and the Under-Secretary of Finance also were present,
Premier Sidky requested Mr. Jardine to endeavor to have
the United States reduce the present high tariff, especially
on commodities exported by Egypt. The principal items
are cotton, onions and manganese ores. The cablegram
continued:
A memorandum submitted by the Premier to Mr. Jardine quotes statistics on Egypt's exports to the United States for the past five years showing that more than 80% of the total exports to the United States consist
of these three commodities. It also gives the figures for Egyptian imports
from the United States for the same period, indicating a marked increase,
especially in agricultural machinery, during 1928-1929, when more than
$.5.000,000 worth of machinery was imported here.
The memorandum emphasizes that the new tariff is most unfavorable
to the growth of trade between the two countries in the future.
After asserting that, while the export of cotton, onions and manganese
to the United States is a most important factor to Egypt, these exports
have an almost insignificant effect on the American producer. In conclusion the memorandum says the result of the present high tariff must be
to reduce the volume of Egypt's exports to the United States and make
the Egyptian consumer disinclined to purchase American goods.
Hint of Trouble for Tourists.
"From the wider viewpoint it would be a matter of deep regret if the
very friendly relations which always have existed between the Egyptian
people at large and individual Americans visiting this country should be
to any degree clouded by disturbance in the commercial bonds which link
the two countries," says the memorandum. "yet the duties to which
reference has been made would appear intended deliberately to exclude
from the American market Egyptian products which cannot be said to
compete with those of the American producer. The government of Egypt
therefore, ventures to express the hope that the United States will see
its way to reduce the duties on raw cotton, manganese ores and onions to
levels where they stood before the changes in the new tariff were approved."
Premier Sidky recalled that Mr. Jardine, formerly Secretary of Agriculture, was known to be an agricultural expert and now that he is here
and acquainted with the problem on both sides trusted Mr. Jardine would
study the question with a view to relieving the situation.
Mr. Jardine in replying told Premier Sidky he realize the difficulties of
cotton producers the world over because of that commodity's very low
price as a result of reduction in tire consumption and to the fact that more
than 20% fewer spindles are now operating than a year ago and that there
are many factors to be reckoned with besides the American tariff. He
suggested that experts representing both countries study the problem of
cotton, onions and manganese problems as affected by the American
tariff and draw up a report of their findings and recommendations upon
which Mr. Jardine would base recommendation.s to Washington.
The Premier agreed and it finally was decided that a committee of
experts be appointed by both sides jointly in the next few days.
Higher Tariff on Sugar Planned.
As an emergency measure in an attempt to relieve the economic crisis
here the Egyptian Cabinet decided today to impose a surtax on all Russian
products, which have been dumped here in the past few months. A royal
decree to that effect will be issued immediately.
The decree will also levy a high tariff on sugar imports in order to protect the local sugar industry. The Cabinet hopes thus to encourage the
increase of sugar-cane acreage in the country, thereby diminishing the
cotton acreage and relieving the somewhat serious cotton crisis.
A high tariff Is to be levied also on all Imported wheat and flour for the
same reason.
Activity of the cotton manufacturing industry of the
United States has increased more than seasonally during
the past four months, according to the New York Cotton Cotton Jobbers Suspended in Egypt—Exchange Coin.
mission's Action Intended to Halt Continuous
Exchange Service. From August to November, spinning
Decline in Prices—Period is for Two Weeks.
activity, as measured by average daily consumption of cotFrom the New York "Times" we take the following
ton, increased 26% this year against an average increase
in the same period in the past five years of only 15%. The Cairo advices Dec. 11:
The dire situation in Egypt's cotton market, especially during the past
Exchange Service under date of Dec. 16, says:
week, when cotton fell almost to the lowest price in its history here,forced
"The reduction in domestic consumption of ()often from 444,000 bales In
October to 415,000 in November should not be interpreted as indicating a
decrease in the rate of consumption. It NUB due mainly to the fact that
there were only 22 working days in November against 243i in October, a
minus difference of about 10%. Another contributing factor WBB that,
according to our advices, numerous mills which reported for five weeks in
October reported for only four weeks in November. The Government makes
every effort to have all mills report by calendar months, but some mills
report for four or five week periods because they keep their consumption
records on a weekly basis.
"Without allowing for the irregularity in the periods covered by the
mill reports, and taking the Government consumption total as issued, the
average consumption per working day in November was 18,900 bales, compared with 18,100 in October, 16,800 in September, and 15,000 in August.
These figures confirm our advices that the consumption rate has been increasing steadily in recent months."
97% Extra Dividend Voted by Knox Woolen Co.
of Maine.
The following United Press advices from Camden, Maine,
Dec. 16, are from the New York "Herald Tribune":
Stockholders of the Knox Woolen Company, most of whom live in this
vicinity, will receive about $588,000, to be distributed among them in the
form of an extra dividend of 97% declared by the board of directors.
C. W. Babb, treasurer, in a letter to the stockholders informing them
of the dividend, said the company "has shown substantial profits yearly
in excess of dividends paid. These profits have increased the working
capital to such an extent that it has now reached an amount in excess of
the needs of the business."
Egypt Requests Us to Reduce Tariffs—Lower Duties
on Manganese Ore, Cotton and Onions Sought.
According to a Cairo (Egypt) cablegram to the New York
"Times" at a conference Dec. 14, between Premier Sidky
and William M.Jardine, the American Minister to Egypt, at
the Government to take drastic measures in an attempt to avert a catastrophe:for this constant fall in the price of cotton. which is the main source
of Egypt's livelihood, tends to aggravate the already serious financial crisis.
Leading cotton dealers felt greatly relieved when the Government announced that Abdel Wasab Pasha, Under-Secretary of Finance, had been
delegated to meet the members of the Alexandria Cotton Exchange Coinmission and consider the most effective measures to be taken. No time
was lost and as a result of the conference the following announcement
was made:
"In view of the circumstances prevailing and by virtue of the special
powers vested in It the Exchange Commission has decided, among other
measures it proposes taking with the view of safeguarding local interests
and the general interests of the country, to suspend temporarily and collectively all jobbers (meaning small brokers who buy and sell small quantities without paying any deposit) for a period of 15 days, beginning Thursday, Dec. 11, and they are not authorized to undertake any transactions
in cotton or cottonseed contracts within the premises of the Exchange.
"Contracts entered prior to this date may be consummated through
the broker with whose firm the jobber is connected."
Other Measures Projected.
It is understood also that a proposal will be submitted to the General
Assembly of the Exchange to the effect that the deposit on speculation
transactions should be $4 per kantar for Sakel cotton and 2311 per kantar
Upper Egypt cotton, the money to be deposited in any bank in Alexandria
to the credit of the Alexandria Exchange Commission.
The Commission further decided to call a general meeting of all members
of the Exchange with the view of discussing the adoption of any other
measures deemed advisable in the present conditions. This meeting will
be attended by the Under-Secretary of Finance for the purpose of explaining the situation.
These drastic decisions of the Exchange Commission have been the
cause of much argument and comment pro and con. Arguments in favor
of the decisions are that jobbers create in the market an artificial fall in
price because of their uncovered transactions, and that the downward
trend of prices is greatly accelerated by the jobbers' activities since they
have no interest other than in the fluctuation of prices. A downward
trend being to their interest it is feared they will increase their activities
in that direction.
Those opposing the decisions are the more numerous. They contend
that the jobbers are restricted by Exchange regulation to transactions of
Mile. 20
FINANCIAL CHRONICLE
1930.]
a purely ephemeral character-every buying or selling position taken up
by the jobbers must be liquidated or covered within 48 hours. Since the
seller of to-day is the buyer of to-morrow it is obvious, they say, that In
the strict exercise of his functions the jobber can have little or no permanent
influence on prices.
Though it is admitted that these functions frequently are flagrantly
abused, nevertheless It is felt that if properly controlled the activities of
the jobbers-here as In all other markets throughout the world-should
have the highly desirable effect of checking the impetus of any heavy
buying or selling movement, and of preserving more stability in the market
than could possibly be maintained in their absence.
3959
As in the copper, steel and oil industries of the United States, the price
problem was uppermost in the minds of American rayon leaders when they
came to London. Prices have been unremunerative most of this year.
while the world consumption of artificial silk fell far below production.
During the last quarter of this year there has been a seasonal improvement
in the demand, but few producers expect it to be permanent.
The British rayon industry includes big producers like Courtaulds. Ltd.
British Celanese, Ltd., has been in an especially delicate condition with a
steadily declining percentage of the world production. During the past
week the Ministry of Labor issued its first separate unemployment figures
for the rayon industry, revealing unemployment of almost 28% at the end
of October. The capacity of the British factories at present is estimated at
twice the present production rate.
Despite their failure to agree,leaders of the Industry are firmly convinced
that stabilization is needed if the industry is to be restored to health. The
Americans who came to London for the meeting included L.A. Yerkes ef the
du Pont Rayon Co., S. A. Salvage, chairman of the Viscose Co., which Is
an American subsidiary of Courtaulds, Ltd., and S. H. Fuller Jr.,chairman
of the American Glanzstoff Corp.
Census Report on Cotton Consumed in November.
Under date of Dec. 13 1930 the Census Bureau issued its
report showing cotton consumed in the United States, cotton
on hand, active cotton spindles, and imports and exports of
cotton for the month of November 1930 and 1929. Cotton
consumed amounted to 414,887 bales of lint and 54,777 bales
Cottonseed Oil Produced During November.
of linters, compared with 444,494 bales of lint and 66,176
On Dec. 12 the Bureau of the Census issued the following
bales of linters in October 1930 and 541,153 bales of lint and
63,214 bales of linters in November 1929. It will be seen statement showing cottonseed received, crushed and on hand
that there is a decrease under November 1929 in the total and cottonseed products manufactured,shipped out, on hand
lint and linters combined of 134,703 bales, or 22.28%. The and exports during the month of November 1930 and 1929:
COTTONSEED RECEIVED. CRUSHED AND ON HAND (TONS).
following is the official statement:
NOVEMBER REPORT OF COTTON CONSUMED. ON HAND, IMPORTED
AND EXPORTED, AND ACTIVE COTTON SPINDLES.
Cotton In running bale., counting round as halt bales, except foreign, which la in
500-potuid bales.]
Cotton Consumed
During-
Cotton on Band
Nos.30-
Cotton
Spindles
Four
In Con- In Public Active
Year
Months sinning
Storage
During
Nor.
Ended Establish- & at ConsNov.
(bales) Nor.30. mans. presses. (Number)
(bales)
(bales)
(bales)
United States
1 1930414,887 1,606,037 1,566,854 8,397,800 25,951,016
1 1929 541,153 2,285,500 1,655,071 5,812,658 29,739,920
Cotton-growing States_
New England States
All other States
Included AboveEgyptian cotton
Other foreign cotton
Amer.-Egyptian cotton_
1930 333.041 1,284,328 1,193,342 8,039.872 16,970,794
1929 424,437 1,765,057 1,297.822 5,626.906 18,022,248
1930 66,906 262,923 316.557 110.583 8.048,612
1929 97,314 434,623 300,234
74,674 10.446.048
19311 14,940
58,786
56,955 247.345
931,610
1929 19,402
85,820
57,515 111,078 12,716,241
1930 9,078
1929 18,263
1930 6,013
1929 7,029
1930
779
1929 1.235
34.538
76,139
26,084
34.234
2,471
5,287
74,871
72,207
30,216
26,210
5,541
3,417
33,051
25,541
26.385
16,513
10,432
8,397
Received at Mills*
Crushed
On Hand at MiUs
Aug. 1 to Nov. 30. Aug. 110 Nov. 30.
Nov. 30.
Stales.
1930.
Alabama.
Arizona
Arkansas
California
Georgia
Louisiana
MltPPi
North Carolina
Oklahoma
South Carolina
Tenneesee
Texas
All other States
1929.
1930.
1929.
1930.
1929.
296,603 205,253 206,897 160.998
89.972
45,448
27.181
27,748
36.671
37,665
9.189
10.647
59,013 146,345
199,361 317.973 143,398 172,726
42,291
84,113
70,15
37,529
71,680
36.155
450.481 267,838 344,223 234.580 106.987
33.853
49.512
173,298 184,251 124,456 128,419
60,900
290.004 313,875 167,948
447,977 577,70
27.484
185,518 131,259 139,444 100.491
46.438
31,219
120,379 154,873 82.683 102.927
200,780 253
93,305
33.376
166,947 105,988 133.965
13,276
127,192
206,975 231.678
126,994
82,378 105,780
731,394 710,504 298,137 287,325
1,012,828 977,71
34.547
53,921
32,612
49.818
19,376
17,331
3.503,040 3.411,238 .465.938 2,290,171 1,082,518 1,162,673
United States
*Includes seed destroyed at mills but not 45,434 tons and 41,606 tone on hand
Aug.1. nor 28,6.56 tons and 3.5,674 tons reshipped for 1930 and 929.respectively.
COTTONSEED PRODUCTS MANUFACTURED. SHIPPED OUT AND
ON HAND.
Item.
Season.
On Hand
Aug. 1,
Produced
Shipped Out
Aug.1-Nov.30 Aug.1-Nov.30
On Hand
Nov. 30.
1930-31
*7,893,957 742,620,940 682,081,138 •114.594,978
Crude oil
1929-30
Pounds
19,181.886 705,913,130 643,955,979 123.485,159
Refined oil
1930-31 a301,609.092 8576.568,869
0350.260.359
l 1930 54,777 240,761 222,104
79,271
Pounds
1929-30 338.619,933 532.099,951
326,867.857
1 1929 63.214 311.663 185.542
55 55?
1,109,794
55,352
1930-31
912.823
Cake and meal
252.323
Tons
1,020,408
76.667
1929-30
897,199
199,876
Imports of Foreign Cotton (5004b. Braes).
882,805
28,495
534.960
Hulls
176.340
1930-31
522,033
Teas
626,932
63,917
1929-30
168,816
265,485
427,979
Country of Production.
135,220
297,714
November.
1939-31
4 Mos. End, Nov. 30. Linters
335,446
473,731
209,139
70,854
Running bales 1929-30
14,381
2,659
1930-31
17,200
5.478
Hull fiber
1930.
1929.
1930.
1929.
23,574
24,827
1,848
2,901
500-lb. bales 1929-30
9,071
12.776
15.406
19,111
174
19,441
199
Egypt
56,923 Grable,motes,&e. 1930-31
000-lb balm 1929-30
11.524
18.013
8.453
Peru
5
2,087
14.942
19
9.723
China
376
1,633
3.393
2,056
* Includes 1,932,090 and 12.368.824 lbs. held by refining and manufacturing
8,431
Mexico
845
845
16,986 establishments and 3,558.420 and 39,282,905 lbs. in transit to refiners and conBritish India
555
5,117
9.701
17,721 sumers Aug. 1 1930 and Nov. 30 1930, respectively. a Includes 6.088,528 and
All other
197
50
294
675 2,403,649 lbs. held by refiners. brokers, agents and warehousemen at places other
than refineries and manufacturing establishments, and 5.919.817 and 12.853.476
3,409
35.502
Total
14,451
104.084 lbs. in transit to manufacturers of lard substitute, oleomargarine, soap, &c., Aug. 1
1930 and Nov.30 1930, respectively. b Produced from 623,968,525 lbs.of crude oll.
Exports of Domestic Cotton Exclud no 14nters
EXPORTS OF COTTONSEED PRODUCTS FOR THREE MONTHS ENDING
(Running Bales-See Note for Linters).
OCT. 31.
1930.
1929.
ItemNovember.
amenity to Which Exported.
4 Mos. End. Nov. 30, 011-Crude. Pounds
721,745
4,746.560
Renned, pounds
4,430,463
1,541,629
1929.
1930.
1930.
1929.
8,828
Cake and meal, tons of 2,000 pounds
87,881
25,370
Linters, running bales
27.535
213,197
United Kingdom
232,208
591,823
838,074
161,472
France
182,055
511,413
417,192
52,202
99,147
Italy
198,561
301.142 Petroleum and Its Products-Industry in Improved
199.060
231,875
Germany
920.865
870.743
Other Europe
81.912
116,173
313,893
405,556
Statistical Position-Price List Firm-California
102,540
Japan_
181,723
365.438
459,235
97,266
All other
55,779
278,768
Sets New Allowable Output.
160,012
Not Included AboveLinters
907,649 1,048,760 3,180,761 3.251,954
Total
Note.-Unters exported, not included above, were 12,604 bales during November
in 1930 and 13.955 bales In 1929; 37,974 bales for the four months ending Nov. 30
In 1930 and 41.490 bales in 1929. The distribution for November 1930 follows.
United Kingdom, 1,065; Spain. 257; Belgium, 1,656; France, 2,626; Germany,
5,474; Canada, 1,522; New Zealand, 4.
WORLD STATISTICS.
The estimated world's Production of commercial cotton, exclusive of linters,
compiled
from various sources Is 26,673,000 bales, counting
1929,
as
grown in
American In running bales and foreign In bales of 478 pounds lint, while the consumption of cotton (excludIve of linters In the United States) for the year ending
July 31 1930 was approximately 24,946.000 bales. The total number of spinning
cotton spindles, both active and idle Is about 184,000,000.
Rayon Parley Fails to Stabilize Prices-London Conference of World Leaders of the Industry Ends
Without Results-Capacity of British Rayon Factories Twice Present Output-28% of Workers Idle.
In a wireless message from London, Dec. 14 the New
York "Times" said:
Leaders of the world's artificial silk industry have met failure in
their
attempt to stabilize prices and stave off further depression in their trade.
A conference of leading rayon producers from the United States, England
and four continental European nations met in London last week in a
struggle to end price fluctuations but adjourned with virtually nothing
achieved. The only result of the conference, in fact, was a valuable exchange of views and a loophole through which Informal talks may be resumed some time later. The prospect of checking the downward trend of
rayon prices is no better, therefore, than before the conference. Those in
touch with the British rayon industry fear that prices will remain unstable
for many discouraging weeks before a turn for the better occurs.
The improved statistical position of the crude oil market
combined with further steps being taken to insure output
being kept down to levels equal to the present market
demand has resulted in a more optimistic viewpoint towards
the future of the industry. While it is true that there are
no immediate prospects of any advance in crude oil prices,
if stocks are maintained at their present low levels, this
would leave the market in a good position to take advantage
of any improvement in the early part of 1931.
California operators have decided to set the allowable
output for that State at 500,000 barrels a day, contrasted
with 540,000 barrels daily at present. This new allowable
will go into effect January 1 and will continue until conditions warrant a change. While this is a step in the right
direction, as California has long been a weak spot in the
market, it will not be effective unless it is enforced. With
present allowable set at 540,000 barrels a day, operators
have been exceeding their allotted output by approximately
60,000 barrels a day for some time. However, the recent
decision of the Supreme Court of California upholding the
constitutionality of the State conservation law will help
the proration adherents in enforcing the allowable output.
No price changes have been posted in this field and the
rest of the country remains unchanged.
3960
[voL. 131.
FINANCIAL CHRONICLE
all of the major companies met the cut immediately.
Stand-
Interest of the Mid-Continent fields is centered on the
meeting being held to-day in Tulsa, Oklahoma, of the MidContinent Oil & Gas Association. At this meeting, operators
ard Oil of Ohio has reduced the price of gasoline throughout
its territory 20. a gallon with the new service station price
will decide what action will be taken on curtailment measures
It is thought that the asso-
being 17e. a gallon as compared with 19c. formerly. This
cut was also caused by local competitive conditions. Price
ciation will recommend that the Corporation Commission
continue the present maximum allowable of 535,000 barrels
daily with such modifications of this figure as are rendered
necessary by changed conditions. Considerable confusion
changes follow:
for the first quarter of 1931.
In the Mid-Continent area has been caused by the action of
Prairie Oil & Gas which, several weeks ago, announced
tha‘ it would cease to purchase any more crude on Jan. 1.
Several plans to take care of the surplus which will be thrown
on the market at that time are being considered with the
possibility of producers leasing the Prairie Oil & Gas pipe
The cost of this move would be
crude.
distributed between the producers who gathered the
a
Congressman McKeown, of Oklahoma, introduced
power
resolution in the House this week seeking to confer the
upon President Hoover to declare an embargo on any further
Imports of petroleum products into this country. It is not
line to move this crude.
likely that any action will be taken in the
present session either on this resolution or the question of
December 17.-Continental 011. Philips Petroleum, Standard of Indiana and other major companies announced to-day a 2c. a gallon cut In
tho service station price of gasoline In Denver, Colorado.
December 17.-Standard Oil of Ohio announced a cut of 2c. a gallon
In the price of gasoline to-day throughout Its territory.
Gasoline, U. S. Motor. Tank Car Lots. F.O.B. Refinery.
N.Y.(Bayonne)Stand. Oil, N..7,,.$.06
Stand. 011. N. Y___ __
Tide Water 011 Co. .013)i
Richfield 011 Co__ .07)4
Warner-QuinFnCo .0634
Pan-Am. Pet. Co. .07
Shell Eastern Pet_ .075i
A sharp drop in demand for crude from the Wayne district
fields resulted in the Joseph Seep Purchasing Agency of the
of
South Penn Oil Company discontinuing the purchase
Co.
Somerset crude oil in lines of the Cumberland Pipe Line
In the same area, Bessemer Pipe Line and Crew-Levick
Pennhave stopped paying a 25-cent premium on runs of
sylvania-grade crude oil due to the decline of demand.
There were no price changes posted this week.
Prices of Typical Crudes per Barrel at Wells.
(All gravities where A. P. I. degrees are not shown.)
$2.15 Spindletop. Texas, below 25
Bradford, Pa
1.25 Winkler, Texas, below 25
Corning, Ohio
1.05 Smackover, Ark.. 24 and over
Va
Cabe11. W.
1.30 Smackover, Ark., below 2
Illinois
1.15 Eldorado, Ark., 44
Western Kentucky
.98 Urania, La
Midcontinent, Okla.. 37
.75 Salt Creek. Wyo.. 37
Corsicana. Texas, heavy
.89 Sunburst. Mont
Hutchinson. Texas, 34
1.65 Artesia, N. Mex
Kettleman Hills. 55
1.10 Santa Fe Springs, Calif., 33
Kettleman Hills, 35-39.9
1.35 Midway-Sunset, Calif., 22
Kettleman Hills, 40-49.9
1.50 Huntington, Calif., 28
Kettleman Hills. 50-54.9
Ventura, Calif., 26
Luling, Texas
Petrolia. Canada
1.00
A
grade
Texas.
Spindletop,
5.183
22
162
165
198
17
3.76
.so
.70
.70
1.14
.75
.98
1.55
.76
1.48
.94
1.22
1,15
1.60
WEAK.
The refined products market in the Eastern field continued quiet with little strength being shown in any division.
Business has continued dull with hand to mouth buying
policies on the part of the buyers noted. Gasoline firmed up
slightly and dealers do not expect to see any further price
drops in this field. Kerosene, aided by the cold weather,
showed a little more strength than it has for the past week
or so and the tank-wagon market has been fairly active.
Fuel oil continues soft with price cutting undermining the
stability of the market.
has
With the drop in trading usual at this time of the year
Recome evidence of a slight firming up of the market.
considerably
finers are maintaining their posted levels and
6Y2 to
less price shading is reported. Prices continue from
lots, at the
7c. a gallon for U. S. Motor gasoline, in tank car
some
refineries. The tank-wagon market has dropped
that
gallonage due to cold weather, but marketers report
Premium
demand has held up much better than expected.
noted
fuel sales are holding up well with increasing demand
for this product.
wave,
With the stimulation afforded by the recent cold
unkerosene has strengthened slightly. Prices continue
to grant
changed, but dealers are reported as not as willing
41-43 water
concessions as they have been recently. On
refiners are in
white the posted price is 6Mc. a gallon and
It is possible to obtain
most cases holding to that level.
but there
this grade at 63ic. a gallon, according to reports,
The
is not much kerosene moving below the quoted prices.
unchanged in this
tank-wagon market is firm with prices
field.
price shading
Fuel oil continues to be easy with continued
market remains unweakening the market. The bunker
terminals, with
changed at $1.05 per barrel, in bulk. f.o.b.,
harbor limits.
the usual charge for lighterage alongside within
bulk at the reDiesel oil remains posted at $2 per barrel in
product
While the undertone of the market,for this
is easy, no price changes are expected in the near future.
gallon
Local competition in Denver has resulted in a 2c. a
fineries.
Cincinnati
Cleveland
Denver
Detroit
Houston
Jacksonville
Kansss City
$.17
.17
17
125
19
19
.149
Minneapolis
New Orleans
Philadelphia
San Francisco
Spokane
St. Louis
Practically
$ 17
165
19
.21
22
13
Kerosene, 41-43 Water White Tank Car Lots, F.O.B. Refinery.
$.03-.035i I New Orleans-$.035i-o4
N.Y.(Bayonne)L0614-.0612 I Chicago
03l1-.0334
North Texas_ _ _ _ .03-.03Si I Los Angeles, ex.04s-.08 'Tulsa
Fuel Oil, F.O.B. Refinery or Terminal.
I Gulf Coast "C" $.8734,75
New York(Bayonne)- Los Angeles 271) plus
S.85-1.051Chicago 18-22D_.60 -.65
$1.05
Bunker "C"
1.85 New Orl'ns 18-20 D .75-.801
Memel 28-30D_
Gas Oil, F.O.B. Refinery or Terminal.
I Tulsa'ChicagoN. Y.(Bayonne)32-36D Ind 5.02 %-.0234 I 32-380 Ind __5.02-.02(
28D plus $.O4-.05.1
Weekly Refinery Statistics for the United
REFINED PRODUCTS-MARKET CONTINUES QUIET-GASOLINE AND KEROSENE FIRM UP SLIGHTLY-FUEL OILS
reduction in the service station price of gasoline.
Callfornla$.07 S4-.11
Los Angeles.ex.._ _06-.07 Si
Gulf Coast, ex..054-.0534
North Louislana.05 SI-.0564
North Texas-----04-.0434
.05-.05)
Oklahoma
Pennsylvania
Gasoline, Service Station, Tax Included.
New York
Atlanta
Baltimore
Boston
Buffalo
Chicago
thought
an oil tariff.
N. Y.-Carson Pet_5.077
Colonial-13eacon_ .077
Sinclair Ref _____ __
044-.044
Chicago
New Orleans__ 054-.053.4
05-.05%
Arkansas
States.
According to the American Petroleum Institute, figures
for the week ended Dec. 13 1930, for companies aggregating
-barrel esti3,571,200 barrels, or 95.7%, of the 3,730,100
opermated daily potential refining capacity of the plants
ating in the United States during the week ended Dec. 13
1930 report that the crude runs to still for the week show
that these companies operated to 64% of their total capacity.
Figures published last week show that companies aggregating 3,571,200 barrels, or 95.7%, of the 3,730,100-barrel
daily potential refining capacity of all plants
which
operating in the United States during that week, but
to
operated to only 61.2% of their capacity, contributed
follows:
that report. The report for the week ended Dee. 13
estimated
STOCKS,
CRUDE RUNS TO STILLS, GASOLINE AND GAS AND FUEL
WEEK ENDED DEC. 13 1930.
(Figures In Barrels of 42 Gallons.)
District.
Per Cent
Potential
Capacity
Reportlog.
Crude
Runs
to
Stills.
Per Cent
0per.
of Total
Capacity
Report.
Gasoline
Stocks.
Gas
and
Fuel
Oil
Stocks.
100.0
East Coast
93.8
Appalachian
Ind., Illinois. Kentucky 97,5
89.4
Okla., Kan., Missouri
91.9
Texas
Loulsiana-Arkansas__.. 98.3
93.1
Rocky Mountain
98.8
California
3,092,000
497,000
1,920,000
1,780.000
3,558.000
1,046,000
286.000
3,817,000
72.1
53.8
72.0
61.7
68.4
57.0
29.2
61.4
5,263,000
851,000
4,232,000
2,523,000
6,763,000
1,289,000
1,581,000
15,198,000
10.618.000
951,000
3,747,000
4,494,000
10,832,000
2.197,000
1,001,000
104,041.000
Total week Dec. 13_ 95,7
Daily average
Total week Dec. S.._ 95.7
Daily average
YTotal Dec. 14 1929_ 95.2
Daily average
100.0
xTexas Gulf Coast
gLouislana Gulf Coast_ 100.0
13.996,000
2,285,100
15,311,000
2,187,300
18,049,000
2,578,400
2,678,000
769 000
64.0
37.680.000
137,881.000
61.2
37,742,000
138,864,000
73.6
39,058,000 .141,947.000
8.190.000
5,424,000
1,274,000
1.014.000
of their
1930
13
• Final revised. a Included above in table for week ended Dec.
above
respective districts. y The United States total figures for last year shown
the
percentage
In
difference
are nor comparable with this year's totals because of the
capacity reporting.
present Bureau
Note -All crude runs to stills and stocks figures follow exactly the
of fuel
of Mines definitions. In California, stocks of heavy crude and all gradesruns to
oil are Included under the heading "Gas and Fuel Olt Stocks." Crude oil
stills Include both foreign and domestic crude.
Crude
72.3
74.5
Oil Production Continues Below That of
Last Year.
that the
The American Petroleum Institute estimates
daily average gross crude oil production in the United
States for the week ended Dec. 13 1930 was 2,232,850
barrels, as compared with 2,229,250 barrels for the precedthe
ing week, an increase of 3,600 barrels. Compared with
barrels
2,622,250
of
1929,
14
Dec.
ended
output for the week
389,400
per day, the current figure represents a decrease of
of Calibarrels daily. The daily average production east
Dec. 13
fornia was 1,621,150 barrels for the week ended
preceding
1930, as compared with 1,628,850 barrels for the
are estiweek, a decrease of 7,700 barrels. The following
mates of daily average gross production, by districts:
DEC. 20 1930.]
FINANCIAL CHRONICLE
DAILY AVERAGE PRODUCTION (FIGURES IN BARRELS.)
Weeks EndedDec. 13'30. Dec.6'30. Nor.29'30. Dec. 14'29.
Oklahoma
469,650
451.900
486,900
850.500
Kansas
103.450
105.100
107,650
109.850
Panhandle Texas
72,750
76,650
73,650
102,750
North Texas
60,550
60.550
64,350
90.100
West Central Texas
39.750
40,450
44,150
55,100
West Texas
246,000
268,150
270,200
350,150
East Central Texas
39.900
40,900
40,100
20.650
Southwest Texas
84,600
87,250
78.850
70.550
North LouisLula
43.700
44,150
44.200
39.600
Arkansas
51.450
51,400
51.900
62.550
Coastal Texas
165,900
162,050
161.600
137.300
Coastal Louisiana
26,800
28,000
29.350
22.100
Eastern (not incl. Michigan). _
106,550
104,000
101,000
124.600
Michigan
8.750
8,700
9.000
14,000
Wyoming
48.800
49,650
46,300
55,450
Montana
6,900
6,900
6,450
10,600
Colorado
4,300
4,000
4,200
5.200
New Mexico
41,350
41,050
46,100
8,100
California
611,700
600.400
599,900
693,100
Total
3961
Production and Shipments of Portland Cement Decline.
According to the United States Bureau of Mines, Department of Commerce, the Portland cement industry in November 1930 produced 11,098,000 barrels, shipped 8,784,000
barrels from the mills, and had in stock at the end of the
month 23,011,000 barrels. Production of Portland cement
in November 1930, showed a decrease of 21% and shipments
a decrease of 21.7% as compared with November 1929.
Portland cement stocks at the mills were 26.3% higher than
a year ago.
In the following statement of relation of production to
capacity the total output of finished cement is compared
with the estimated capacity of 165 plants both at the close
of November 1930 and of November 1929. The estimates
include increased capacity due to extensions and improvements during the period.
11cocwoobaoo-4.4co,c,
N
—
0.00
a-47-ce.mboW
2,232,850 2,229,250 2,265,900 2,622,250
The estimated daily average gross production for the Mid-Continent
Field, including Oklahoma, Kansas, Panhandle, North, West Central,
West, East Central and Southwest Texas, North Louisiana and Arkansas,
for the week ended Dec. 13, was 1.211,800 barrels, al. compared with
1,224,500 barrels for the preceding week, a decrease of 12,700 barrels.
RELATION OF PRODUCTION TO CAPACITY.
The Mid-Continent production, excluding Smackover (Arkansas)
heavy
oil, was 1,176,500 barrels, as compared with 1,189,150 barrels, a decrease
Nov. 1929. Nov. 1930. Oct. 1930. Sept. 1930. Aug. 1930.
of 12,650 barrels.
The production figures of certain pools in the various districts for the The month
66.6%
51.7%
65.4%
75.7%
81.0%
66.8%
64.2%
62.6%
current week, compared with the previous week, in barrels of 42 gallons, The 12 months ended
65.2%
65.6%
follow:
PRODUCTION, SHIPMENTS AND STOCKS OF FINISHED PORTLAND
-Week Ended-Week EndedCEMENT,BY DISTRICTS. IN NOVEMBER 1929 AND 1930 (IN
OklahomaDec. 13. Dec. 6.
Southwest TexasDec.13. Dec.6.
THOUBowlegs
13,450 13,000 Chapmann-Abbot
SANDS OF BARRELS).
5,500 8.100
Bristow-slick
10.550 10,600 Darst Creek
36.900 38,600
Burbank
12,900 13,000 Luling
9,900 9,650
Carr City
Production.
Shipments.
14,550 12,050 Salt Flat
Stocks ai End
15,000 15,300
District.
November
Earlsboro
November
of Month.
17,900 13,950
North LouisianaEast Earlsboro
18,650 17,050 Sarepta-Carterville
2,100
2,150
South Millsboro
1929.
1930.
1929
8.750
1930.
1929.
7,950 Zwolle
1930.
9,500 9,650
Konawa
15,750 11.000
ArkansasLittle River
Eastern Pa.. N..7. and hid
2,973
23,250 23,500 Smackover, light
2.124 4.020 4,521
4,750
4.800
East Little River
New York and Maine
848
617 1,107 1,395
10.350 11.250 Smackover, heavy
35,300 35,350 Ohlo, Western Pa. and W. Va._
Maud
1,537
830 2,580 3.285
2.500 2,500
Coastal TexasMission
Michigan
1,228
538 1,636 2,722
6,200
4.350 Barbers Hill
23,850
24,300
Oklahoma City
Wis., IL., Ind. and Ky
1,760
857 1,869 2.922
85,050 87.300 Raccoon Bend
8.550
8,700 Va., Tenn.. Ala., Ga., Fla. & La_
St. Louis
1,085
807 1,557 1,767
22,100 20.050 Refugio County
29,600
27.500
Searight
Mo., la.. Minn. at S. Dak_
1,344
739 1,876 1,934
5,900 5.500 Sugarland
12,200 12,000 East
Seminole
W Mo, Neb.. Kans.. Okla. dt Ark 1.176
632 1,009 1,763
14.100 12.900
Coastal LouisianaEast Seminole
661
453
670
2,000
770
1,900 East Hackberry
3,500 3,900 Texas Mont.. Utah, Wyo.&
Gblo..
Ida_
120
118
453
336
01 Hack berry
900
900 California
Kansas1,091
728
991 1,052
WyomingWashington
Sedgwick County
230
341
21,800 22.950 Salt Creek
445
544
28,800 29,400 Oregon &
Yoshell
13,150 13,300
MontanaTneld
14.053 11.098 11.222 8.784 18.213 21 011
Kevin-Sunburst
4,050
4,100
Panhandle Texas-New MexicoGray County
53,750 54,200 Hobbs High
31,700 31,050 PRODUCTION. SHIPMENTS AND STOCKS
OF FINISHED PORTLAND
Hutchinson County_ --- 13,200 15.200 Balance Lea County
7,350 7,400
CEMENT BY MONTHS. IN 1929 AND 1930 (IN THOUS. OF BARRELS).
CaliforniaNorth Texas-Elwood-Goleta
43,000 35.000
Archer County
12.300 12.400 Huntington Beach
27.800 27.200
Wilbarger County
Production.
Shipments.
17,000 16,850 Inglewood
Stocks as End of
15.600 15.300
Month.
Kettleman Hills
Month.
23,200 26,500
West Central Texas-Long Beach
99,600
94.700
Young County
1929.
14,05
1930.
1929.
14,400 Midway-Sunset
1930.
1929.
1930.
59,500 59.000
Playa-Del Rey
46.300 44.000
West Texas9,881
8.498
5,707
Santa Fe Springs
4.955
26,797
27.081
94.000 93,600 January
Crane & Upton Counties 33,500 37,500 Seal Beach
February
8.522
8,162
5.448
7.012
29.870
28.249
17300
Ector County
March
9.969
11.225
7.500
7,450 Ventura Avenue
10.113
8.826
29.724
30.648
45,400
Howard County
April
18.350 24,450
13.750
13.521
13.325
Pennsylvania Grade13,340
30.151
30.867
Reagan County
May
16,151
22.450 21.800 A limany
17.249
16.706
17 224
29,824
30.891
6,500 6.750
Winkler County
16.803
17,239
18,949
Bradford
18 701
27.505
29.364
21.950 22.550 June
Yates
17.315
17.078
92,500 100.200 Kane to Butler
20.319
20 153
24.525
28.289
6.900 6.300 luiy
Balance Pecos County.- 4,200 9,000 Southwestern Penna
18.585
17.821
August
23.052
20 299
20 056
23.824
East Central Texas17,223
16 124
scptember
19 950
Wtvit Virginia
18 083
17.325 a21.889
13:1%) Iffr>f
0
)
Van Zandt County
16,731
14.410
1081(5
26.900 27,700 Southeastern Ohio
15.599
15.381
20.699
7,300 6,000 October
November
14,053
11.098
11.222
8,784
18.213
23,011
11.215
December
5,951
23,538
17
8:302g
Lago
Gulf
Caribbean Petroleum
Creole Petroleum
Colon 011
B. C.0.. Ltd
General Asphalt
Total
By YieldsLagunIllas
La Rosa-Ambrosio
Benitez
Concepcion
La Pas
Mene Grande
Terra
El Niene
Quiriquire
Guanoco
rm.!
VOM00,00g
000OWMVa.
NC.000.0
000
.
CON O'0-
Crude Oil Production in Venezuela Declined in
170,198
Total
169.437
November.
a Revised.
According to O'Shaughnessy's Weekly Oil Bulletin, the
Note.-The statistics above presented are compiled from reports for November
from all manufacturing plants except two, for which estimates have been Included
estimated production of crude oil in Venezuela amounted to in
lieu of actual returns.
10,910,501 barrels in the month of November (a daily average
of 363,683 barrels) and compares with 11,784,591 barrels
(a daily average of 380,148 barrels) in the preceding month Major Metal Prices Drop in Quiet Trade-Copper at
10 Cents and Zinc Show Signs of Stability-Lead
and 11,251,973 barrels in November (a daily average of 375,Weathers Decline.
066 barrels). Estimated shipments in November 1930 totaled
Copper, zinc, tin and silver prices declined in a quiet
11,133,811 barrels as compared with 12,207,500 barrels
in trading week, only lead remaining unchanged
in the domestic
October last. The bulletin also shows:
market, although London quotations have declined almost
PRODUCTION IN VENEZUELA (PARTLY ESTIMATED) IN
BARRELS
OF 42 GALLONS.
daily, "Metal and Mineral Markets" reports. Copper at
10 cents even, and zinc at 4 cents show more signs of stability
CompanyNov. 1930.
Per Day.
Nov. 1929,
Per Day,
than for some time. Continuing the report goes on to say:
V.0. C
105.541
105.468
62.501
46.742
24.360
13,830
4,995
247
3,438,939
2,895,194
2,395.700
1.674.030
646.300
114.631
96.507
79.857
55.801
321,543
175,110
26,700
5.837
890
10,910,501
363,683
11.251,973
375.066
,6.148,134
2.070.940
51.220
367.282
44,327
1,402.289
414.885
149,845
254.199
7,400
204.938
69.031
1,707
12,243
1,478
46.742
13,830
4.995
8.973
a247
6.271.252
3,096,481
8,400
209.042
103.216
280
1,674,030
55.801
175.110
5,837
10.910 101
363.681
11.25! 97/
26,700
890
.
1,ft 1106
a Temporarily shut down.
VENEZUELA SHIPMENTS (BARRELS OF 42
GALLONS.)
(From Lake to Ocean Terminals-by Companies.)
Nov. 1930. Oct. 1930.
Nov. 1930, Oct. 1930,
3,290,200
3,533.676 Colon Oil
V. 0. C
388,319
397.400
3.364 011
3.540,076113. C. 0., Ltd__.._ 155.700
Lego
144,248
1,710,000
2,114.000 General Asphalt_ Gulf
None
41.300
Carribbean 1'et _ .1,490,381
1,741,600
Petroleum
735,200
694.3001 Total
Creole
x11,133,811 y12,207.500
a Equivalent to about 371,127 barrels per day. 9 Equivalent to about
393,790
barrels per day.
The copper market continues to be in the hands of the group known as
custom smelters; the large producers are out of the market at current levels.
Though there is not a great deal of copper pressing for sale from day to
day. It is more than ample to take care of consuming demand,so quotations
have had to be cut to book even a few small orders. Early in the period
prices varied from 104 to 10'4 cents, delivered Connecticut. but on Dec.15
those who were willing to sell at all found it necessary to drop to 10 cents.
Copper sellers have so far refused to go below the 10 cent level, and if the
export price is reduced to 10.30 cents to-day, as seems likely, they may
hold out for a while at this level and see if a foreign demand develops.
Some Intimations have been made that present sellers at 10 cents might
accumulate a reasonable tonnage rather than cut under that figure, for
they consider that copper is now in a better position than when it sold for
93. cents early last month. Sentiment is therefore somewhat improved
despite the lower price.
Lead again passed through an exceedingly quiet week. but prices held
steady at 5.10 cents, New York. and 4.95 cents St. Louis. Concessions in
zinc proved so attractive in several directions that more of the metal was
booked in the last week than of copper and lead combined. Tin sold down
to 23.50 cents Tuesday, a new low for the year and the lowest price since
1902. A fair tonnage was sold.
Domestic Production of Lead Lower in November.
Total refinery production of lead in the United States
amounted to 48,988 short tons in November against 55,369
tons in October and 53,237 tons in September, according
3962
FINANCIAL CHRONICLE
to figures released by the American Bureau of Metal Statistics and published in the "Wall Street Journal."
Stocks of refined lead at the end of November amounted
to 90,402 tons against 84,375 tons at the end of October.
The "Journal" also states:
[vol. 131.
months and lean to the view that business activity will
show gradual, rather than sharp, recovery, there is increasing evidence of their belief that the market is scraping
bottom and that the next major change in the price trend
will be upward, continues the "Age," which also adds:
Pig iron contracting has continued active at Chicago and New York,
Stocks of domestic lead in the hands of United States producers on where meiters have covered 60% Of their first quarter needs, and has
of
stocks
over
tons
an
tons,
increase of 6,027
Dec. 1 were 90,402 short
shown improvement at Cleveland, where bookings of the week total 22,000
84,875 tons on Nov. 1 and compared with 73,669 tons on Oct. 1.
tons. Considerable tonnage also has been placed for the entire first half of
Production of lead in November from foreign and domestic ore amounted 1931, and in few cases protection throughout 1931 has been asked. The
a
September.
to 48,988 tons against 55,369 tons in October and 53,237 tons in
American Radiator & Standard Sanitary Corp. which last month bought
Domestic lead shipments in November were reported at 43,062 tons 50,000 tons of pig iron, has made additional purchases which raise its total
against 45,129 tons in October and 52,451 tons in September.
contract commitments to 75,000 tons. A large automobile maker is trying
The following table gives, in short tons, lead statistics as compiled by to contract for its castings at present prices until the end of the third quarter.
the American Bureau of Metal Statistics, covering production, stocks and while an automotive foundry unsuccessfully attempted to buy its entire
domestic shipments of lead:
1931 coke requirements at the current market.
Sheet contracting is in impressive volume and at Chicago is described
NO;,
October.
Sept.
July.
August.
as the heaviest in 15 months. It develops that the recent advance of $1
in
43,423 a ton on bars, plates and shapes had the customary effect of driving
50,402
48,491
52,980
51,538
•From domestic ore
5,585 considerable tonnage at the previous prices, with the result that many of
4,987
4.746
5,056
4,866
Second and foreign
the larger buyer§ are covered through most of the first quarter at 1.60c.
48,988 a lb.,
55,389
53.237
58.036
58.204
Total production
Pittsburgh. Efforts to contract for these products through the first
84,378
73,689
72,832
62,880
Stock at beginning of month-- 55,501
half of 1931 have been unsuccessful.
133,363
While steel contracts, in contrast with those for pig iron,are of an optional
111,705 120.916 126,089 129,038
Total supply
90.402 character and permit buyers to cancel tonnage that remains unspecified.
84,375
73,689
72,832
62,880
Stock at end of month
42,961
44.663
52,400
48,084
48,825
the desire of the trade to obtain protection is an earnest of that confidence
Shipments by difference
43,062 in prices that is prerequisite to a change in the business trend.
45,129
52.451
47,979
48,816
Shipments reported
Most of the larger users of tin plate are now under contract for 1931 and,
•
•Includes a small portion of secondary that it is impracticable to separate while specifications are still light, a number of producers are beginning to
statIstically.
roll anticipated tonnage. The mill output has gained for the second conclassiThe following table gives, in short tons, domestic lead shipments
secutive week, now averaging 50%•
Rails placed during the week total 35,500 tons, including 20,000 tons for
fied industrially by the Bureau for the last five months:
the Louisville & Nashville,10,500 tons for the Wabash and 5,000 tons for the
1st
Chicago Great Western. Railroad equipment buying is featured by the
11 Mos.
Nov.
Oct.
Sept.
Aug.
July.
12,147 184.029 purchase by the Santa Fe of 1.522 freight cars, requiring 20.000 tons of
13,569
17,973
16,076
16,842
Cable
35,878
1,055
355
940
2,006
2,068
Ammunition
18,737 steel for toe superstructures alone.
846
703
966
2,138
1,973
TiIoil
Rail mill operations at Chicago have risen to 50% of capacity, compared
52,739
3,627
4,198
5,253
4,408
2.919
Batteries
1,903 with 40% a week ago. Rails and tin plate are the only finished steel
152
51
218
172
213
Brass-making
33,272
2,360
2,397
2,357
products that are showing an expansion in output this month. Generally
2,196
3,438
Sundries
8.783
939
393
464
843
1,328
Jobbers
265.448 speaking, steel specifications for December shipment are shrinking steadily
21,936
23,463
24,280
20,140
20,035
x Unclassified
with the approach of the year-end holiday and inventory suspensions of
43,062 598,789 steel-consuming industries.
45.129
52.451
47,979
48,816
Total
Steel ingot output for the country at large Is unchanged from last week
white lead
x Of the shipments reported as unclassified about one-third goes into to make
at 38%, but further curtailment Is in prospect during the holiday weeks.
and about 30% into red and litharge, as averages, but it is impossibleimportant
While business for December shipment is declining, specifications are
monthly segregation of shipments according to these destinations. Other
and
manufactures are sheet and pipe, which amount to about 6,000 tons a month;
beginning to be received for steel to be delivered in January and the volume
solder and babbitt metal.
of these releases is expected to increase in the next fortnight.
The scrap market, which is always closely watched as a barometer,
remains quiet and without a well defined trend. However, the protracted
World Production of Iron and Steel Declined Sharply decline in prices seems to be arrested. While heavy melting steel, the
most important grade, remains unchanged in price, there have been scatThis Year, Reports "Steel".
tered advances in minor items, notably at Pittsburgh and St. Louis.
precipso
declined
has
steel
and
iron
of
production
World
Dealers in the latter centre have been laying down scrap in their yards for
itately this year-17% in the case of iron and 19% in steel- several weeks, one of them having accumulated the largest stocks in five
that all of the progressive gains recorded in 1927, 1928 and years.
Demand for cast iron pipe has been stimulated by efforts of municipalities
1929 have been completely wiped out, according to "Steel," to rush construction work as a means of relieving unemployment. Detroit
entire
the
For
has taken bids on 11,000 tons and Milwaukee la in the market for 6.000 tons.
formerly "Iron Trade Review," of Cleveland.
Some prospective contracts in the South have been tied up by bank susat
79,605,000
estimated
is
1930
in
iron
pig
of
output
world,
pensions.
gross tons, the lowest since 1926 and comparing with 96,442,Fabricated structural steel contracts total 29,500 tons, compared with a
weekly average of 34,000 tons since September. The large amount of
000 tons in 1929, which was an alltime record,and 87,070,000 pending
work has been augmented by inquiries for 23,500 tons.
tons in 1928. Of steel ingots and castings the production of
Electrolytic copper has again declined. Following a reduction in the
tons,
gross
94,705,000
quotations of custom smelters to 10 cents a pound, Connecticut Valley.
the entire world was approximately
reduced their price to 1014 cents. Spot Straits tin sold Monday
also the lowest since 1926 and comparing with the record Producers
at 2314 cents a pound, Now York, the lowest price in more than 25 years.
1928,
in
tons
and
107,477,000
1929
117,753,000 tons of
Prime Western zinc has also receded, now ranging from 4 to 4.05 cents,
East St. Louis, or very close to the low point of 3.95 cents reached several
eontinues "Steel", which also goes on to say:
weeks ago.
For the United States, 1930 Production of pig iron is estimated at 31.635.The "Iron Age" composite prices for finished steel and heavy melting
of steel ingots and castings,
000 tons, 15% below 1929, while 1930 output
scrap
remain unchanged at 2.121 cents a pound. and $11.25 a gross ton
the
1929.
record
of
at 41,320,000 tons, Is running 27% behind
made respectively. Pig iron has undergone further slight reduction, declining
Excluding the United States, the rest of the world this year has
This year's output from $16.02 to $15.90 a gross ten, the lowest level in 15 years.
37,970.000 tons of pig iron, or 30% less than in 1929.
for the world except the United States, at
Finished Steel.
of steel ingots and castings,
Based on steel bars, beams, tank plates.
Dec. 16 1930, 2.121c. a Lb.
53,385.000 tons is 14% below 1929.
of
share
One
2 121e, wire, rang, black pipe and sheets.
States'
week
ago
the
concerning
United
shown
thus
A mixed trend is
One
These products make 87% of the
135e.
2
month
ago
of pig iron was shrinking
world production. While the United States output
One year ago
2 362e.J United States output.
retreating at 30%, or exactly twice as fast.
was
worl
the
Low.
of
rest
High.
the
15%
slipped back 27%,and the rest of the world 1930
2.121o. Dec. 9
2.3132e. Jan, 7
But in steel the United States
2.3620. Oct. 29
2.4120. Apr. 2
1929
only 14%.
2.3140. Jan. 3
2.391e. Dec. 11
produced 47% of the world's steel; in 1930 1928
2.2930. Oct. 25
In 1929 the United States
2.453e. Jan, 4
1927
2.4030. May 18
5
24830.
Jan.
1926
44%.
barely
2.396c. Aug. 18
every steel-producing country of 1925
2.560e. Jan. 6
Except Russia and Japan. practically
European
of
steel
of
year's
output
This
1930.
Iron.
P19
the world showed a loss in
with 57,500.000
Dec. 16 1930, 515.90 a Gross Ton. iBased on average of baste Iron at Valley
countries, including Russia, was 49,000,000 tons, compared
$16.02 furnace and foundry irons at Chicago,
14%. If Russia be excluded, the reduction One week ago
Sons in 1929, a reduction of
16.131Philadelphia Buffalo, Valley and BBOne month ago
Is 17%.
18.21J mhigbam.
One year ago
Germany surrendered the most ground this year
Low.
High.
Of all European nations,
27%. The decline in Great Britain was 1930
515.90 Dec. 16
$18.21 Jan. 7
In steel production, being off
18.21 Dec. 17
18.71 May 14
Luxemburg 15%,Italy 14%, Czccho-Slovalda 12%. 1929
17%,
Belgium
21.2%.
17.04 July 24
18.59 Nov.27
1928
and France only 3.4%.
17.54 Nov. 1
Poland 11%, the Saar 11.7%
19.71 Jan. 6
of steel ingots and castings in leading 1927
19.46 July 13
21.54 Jan. 5
1926
A comparison of the production
staff
European
the
by
compiled
as
18.96 July 7
years,
Jan.
three
13
22.50
past
1925
world countries the
tons:
gross
in
follows
Scrap.
Steel
of "Steel,"
1928.
1929.
1930.
Dec. 16 1930, 511.25 a Gross Ton. Iiiased on heavy melting steel quo41,320,000 55,650,000 50,887,000 One week ago
$11,251 tattoos at Pittsburgh, Philadelphia
United States
1,240.000 One month ago
1.380,000
995.000
11.671 and Chicago.
Canada
8,520,000 One year ago
9,655.000
7,600.000
14.0S
Great Britain
9,348,000
9,544,000
Low.
9,225,000
High.
France
3,872,000 1930
4,066,000
3,375,000
$11.42 Dec. 9
$15.00 Feb. 18
Belgium
2,526,000 1929
2,659,000
2,250,000
14.08 Dec. 3
17.58 Jan. 29
Luxemburg
1.932,000
2,109,000
1,800,000
13.08 July 2
1928
16.50 Dee. 81
Italy
11.600,000 15,986,000 14,285,000 1927
13.08 Nov.22
15.25 Jan. 11
Germany
4,206,000 1926
4,824,000
5,450,000
14.00 June 1
.17.25 Jan. 5
Russia
15.08 May 5
1925
20.83 Jan, 13
Buying
Steel Ingot Output Unchanged-Forward
Expansion.
Further
Shows
Movement
significant
Further expansion of forward contracting is the
steel, reports
feature of the current situation in iron and
extremely
the "Iron Age" of Dec. 18. While buyers are still
coming
in
requirements
their
estimating
conservative in
Producers of steel bars, plates and shapes, who recently
announced an advance of $1 per ton for the first quarter, to
1.65c, Pittsburgh, are encountering the difficulties usually
attending an effort to establish an advance in a buyers'
market, announced "Steel" in its Issue of Dec. 18. "Steel"
further goes on to say:
DEC. 20 1930.]
FINANCIAL CHRONICLE
Lacking demand for their own products, consumers generally are indifferent to first quarter commitments, thereby denying the market a highly
positive force. Willingness of mills to accept 1.60c specifications to Dec.
31 for shipment at their convenience and hesitancy to cancel contract carryovers also are a drag.
A majority of consumers in territory tributary to Pittsburgh in price have
taken no stand on first quarter contracts. Some have been offered coverage
for the first quarter at 1.60c, a level originally intended only for preferred
buyers. In the East, acceptance of bases equivalent to 1.65c, Pittsburgh,
has been rather general, with heavier specifying against lower-priced contracts.
A spotty, untested price situation thus prevailys in steel, especially in the
Middle West. But should the movement to stabilize accomplish only a firming of the market to 1.60c, Pittsburgh, it will have been constructive and
probably have proved a turning point. With shipments certain to be at a
low ebb the next three weeks at least, the urgency of prices is not marked.
Sensitive to the usual seasonal trend, production and demand are variable
and tending downward. Steelmaking operations this week are about 38%,
a drop of several points. Chicago, Birmingham and Youngstown mills
average 40%, Pittsburgh and eastern Pennsylvania 38, Cleveland 48 and
Buffalo 24. For Birmingham, Chicago and Youngstown this is a loss of
three to five points.
Tin plate production, however, has increased slightly to 50% as mills
start, as usual, to anticipate January requirements. Rail mills at Chicago
dowly accelerating, are at 40 to 50% this week. In the Mahoning valley,
due in large measure to Chevrolet specifications, some sheet mills are
booked thtrough December and may operate Christman day. The trend
however, is for a. marked diminution of production over the holidays.
Plates, shapes and bars are lees active in all markets, with few contracts
closed. Structural awards this week at 30,877 tons, compare with 18,816
tons last week and 98,030 tons a year ago. Principal award this week
was 5300 bons for a subway section in New York. Fresh inquiry totaled
20,000 tons.
Chevrolet releases for steel, including 15,000 tons of sheet, contrast with
a reduction of Ford operations. An important Ford announcement probably
including a reduction in price, seems imminent. In wire and strip, current
demand is lighter, and contract interest mild.
Western mills will benefit largely from the 30,000 tons of steel required
for 1450 freight cars ordered by the Santa Fe. Great Northern has bought
steel for repairing 1,000 to 2,000 cars. Rail orders include 20,000 tons by
the Louisville & Nashville, 11,000 tons by the Wabash and 8,000 to 9,000 tons
by the Kansas City Southern. Many carriers are inquiring for substantial
requirements of steel and car accessories for the first half.
Municipal interest in cast iron pipe is greater, Milwaukee being in the
market for 6,000 tons and Detroit 11,000 tons. A large steel gas line in
Canada is rumored.
Pig iron consumers supplied by Cleveland furnaces placed 28,000 tons
this week, indicating confidence in current prices. Furnace coke is easier.
Producers of scrap prefer to hold their accumulations rather than sell at
current low prices.
Increase of 157,873 tons or 4.5% in the unfilled tonnage of the Steel
corporation Nov. 30 is ascribed to formal entry of rail orders for 1931
rolling The backlog of the corporation Nov. 30 was 3,639,636 tons; a
year go 4,125,345 tons.
Continental steel producers have decided to continue their steel entente
through the first half of 1931, with a further reduction of 5% in production quotas.
Semifinished steel prices, while not formally announced for the first
quarter, appear to be off $1 per ton, making sheet bars,'billets and dabs
$30 and wire rods $35. Manufacturers' wire is offered in instances at
2.20c, a reduction of $2.
Reflecting this adjustment, "Steel's" market cempoeite is down 16 cents,
to $31.68, a new alitime low.
3963
Production of Bituminous Coal and Pennsylvania Anthracite Continues Below That of a Year Ago.
According to the United States Bureau of Mines, Department of Commerce, output of bituminous coal and Pennsylvania anthracite during the week ended Dec. 6 1930, continued below tne rate for the corresponding period last year.
During the week under review, there were produced 9,627,000
net tons of bituminous coal, 1,695,000 tons of Pennsylvania
anthracite and 44,100 tons of beehive coke, as against
11,942,000 tons of bituminous coal, 1,852,000 tons of Pennsylvania anthracite and 86,300 tons of beehive coke in the
corresponding period in 1929, and 8,705,000 tons of bituminous coal, 1,087,000 tons of Pennsylvania anthracite and
40,400 tons of beehive coke in the week ended Nov. 29 1930.
For the calendar year to Dec.61930, the output of bituminous coal totaled 431,540,000 tons as compared with 497,980,000 tons in the calendar year to Dec. 7 1929. The
Bureau's statement follows:
BITUMINOUS COAL.
The total production of soft coal during the week ended Dec. 6 1930,
including lignite and coal coked at the mines, is estimated at 9,927,000 net
tons. Compared with the output in the most recent full-time week, Nov.
17-22, this shows an increase of 737,000 tons, or 8.3%. Production during
the week in 1929 corresponding with that of Dec.6 amounted to 11,942,000
tons.
Estimated United States Production of Bituminous Coal (Net Tons).
1930-1929
Cal. Year.
Cal. Year.
Week.
Week Ended.
to Date.
Week.
to Date.a
8,890,000 413,208,000
Nov. 22
11,173,000 475,862,000
Daily average
1,482,000
1,498,000
1,862,000
1,722,000
8,705,000 421,913,000
Nov. 29_11
10.176,000 486,038,000
1,674,000
Daily average
1,501,000
1,957,000
1,727,000
9,627,000 431,540,000
Dec.6_ c
11,942,000 497,980,000
1,604,000
Daily average
1,503,000
1,990.000
1,732,000
a Minus one day's production first week in January to equalize number
of days in the two years. b Revised since last report. Thanksgiving Day
weighted as 0.2 of a working day. c Subject to revision.
The total production of soft coal during the present calendar year to Dec.
6 (approximately 287 working days) amounts to 431.540,000 net tons.
Figures for corresponding periods in other recent years are given below:
497,980.000 net tons11927
1929
483,539,000 net tons
465,836,000 net tons 11926
1928
531.656,000 net tons
As already indicated by the revised figures above, the total production
coal
for
the
soft
country
as
a
whole
during
the
week
ended Nov. 29 is
of
estimated at 8,705,000 net tons. Compared with the output in the preceding week, this shows a decrease-due to the holiday observance of
Thanksgiving Day-of 185,000 tons, or 2.1%. The following table apportions the tonnage by States and gives comparable figures for other recent
years:
Estimated Weekly Production of Coal by States (Net Tons).
Week Ended
Nov. 23
StateNov.29'30. Nov.22'30. Nov.30'29. Dec.1'28 Average.a
Alabama
275,000
283,000
294,000
341,000
349,000
Arkansasa
35000
37,000
36,000
31,000
25.000
Colorado
209,000
207,000
274,000
230,000
253,000
Illinois
1,255,600 1,060,000 1,389,000 1,308,000 1,535,000
Indiana
332,000
335,000
364,000
340.000
514,000
86,000
91,000
86,000
Iowa
68,000
121.000
64,000
Kansas
58,000
63,000
65,000
90,000
Kentucky653,000
852,000
851.000
Eastern
674,000
584.000
175,000
313,000
312,000
Western
192.000
204,000
44.000
45,000
43,000
55.000
37,000
A small fractional decline occurred in the production of Maryland
15,000
16,000
17,000
12,000
Michigan
21,000
64,000
67,000
97,000
78,000 . 69,000
steel ingots during the week ended last Monday (Dec. 15), Missouri
78,000
61.000
65,000
66,000
Montana
64,000
due primarily to moderate curtailment by the smaller steel New Mexico45,000
52,000
51,000
51,000
56,000
57,000
61,000
56,000
Dakota
48,000
27,000
companies, states the "Wall Street Journal" of Dee. 17. North
403,000
420.000
497,000
389,000
Ohio
599.000
95,000
Oklahoma
56,000
56,000
84.000
58,000
Larger units, particularly those starting to work on steel Pennsylvania
2,105,000 2,360,000 2,443,000 2,492,000 2,818,000
105,000
95,000
104,000
124.000
103,000
rails for delivery early next year recorded a slight gain, adds Tennessee
12,000
11,000
15,000
20,000
Texas
21,000
the "Journal," continuing:
149,000
141,000
140,000
106,000
Utah
100,000
218,000
216,000
248,000
286.000
193,000
The U. S. Steel Corp. was at about 44%,compared with a fraction over Virginia
45,000
47,000
Washington -54,000
50,000
57,000
43% in the preceding week and around 45% two weeks ago. Independents West Virginia:
estimated at 33%, against slightly under 34% in the week before and 35%
Southern_b- 1,512,000 1,550,000 1,864,000 1,797,000 1,132.000
632,000
Northern_c
546,000
602.000
702,000
692.000
two weeks ago.
128,000
132,000
155,000
Wyoming
138.000
173,000
For the industry the average is at approximately 37% of theoretical Other
States_d
1,000
1,000
5,000
5,000
5.000
figure
In the previous week
capacity, contrasted with a shade above that
Total bitum.coaj 8,705,000 8,890,000 10,176,000 10,067,000 9,900,000
and 39% two weeks ago.
It is probable that there will be curtailment in the coming weeks, because Penna.anthracite 1,087,000 1,088,000 1,385,000 1,599,000 1,806,000
of holiday shut-downs and the tendency among many companies to take
Total all coal- 9.792,000 9.978,000 11,561,000 11,666,000 11,706,000
inventories. This is always a period of lessened activities. However,
a Average weekly rate for the entire month. b Includes operations on the
Improvement should come after the turn of the year, although it may not N.& W.• O. & 0.; Virginian;and K.& M. c Rest of State, including Panhandle.'
d Figures not strictly comparable for the several years.
be pronounced until the middle of February or later..
At this time last year the Steel Corp. was at slightly under 64%, with
PENNSYLVANIA ANTHRACITE.
the
average
was
633%. In the
Independents a fraction over 63%, and
The total production of anthracite in the State of Pennsylvania during
corresponding period of 1928 the Steel Corp. was under 82%. Independents the week ended Dec. 5 is estimated at 1,695,000 net tons. This is an in.
crease of 608,000 tons over the output in the holiday week preceding, and
below 79%, and the average was in excess of 80%.
Is the highest production in any week since Oct. 25. Production during
the week in 1929 corresponding with that of Dec. 6 amounted to 1,852,000
net tons.
Estimated Production ofPennsylvania Anthracite (Net Tons).
Ohio Steel Mills Slacken-Curtailment in Youngstown
1929
-930
Daily
Daily
Laid to Year-End Conditions.
Average.
Week.
Week.
Week EndedAverage,
181,300 1,323,000
22
1,088,000
221.000
A Youngstown, Ohio, dispatch Dec. 13 to the Now York November
217,400 1,385,000
November 29
1,087,000
277,000
282,500 1,852,000
December 6
1,695,000
309,000
"Times" is quoted as follows:
BEEHIVE
COKE.
district
will
be
reduced next week,
Production of iron and steel in this
The total production of beehive coke during the week ended Dec. 6 ifi
reflecting year-end conditions. The output ofsteel ingots is not above 40%
estimated at 44,100 net tons. This is in comparison with 40,100 tons
average
from
mills
35
40%.
to
finishing
while
capacity,
of
the preceding week, and 86,300 tons in the week of 1929 correspondduring
Both the Youngstown Sheet & Tube Co. and the Republic Steel Corp. ing with that of Dec.6.
reported another 5% decline to a 35% average for the week. The Sharon
Estimated Production of Beehive Coke (Net Tons).
Week Ended
1930
1929
Steel Hoop Co. maintains production at 55%, operating eight sheet mills
Dec. 6
Nov. 29
Dec. 7 to Date. to Date a.
ROOMhere and strip mills at Sharon to capacity. The Mahoning Valley Steel
1929.
1930.6
1930.c
Co. at Niles, benefiting from automobile tonnages, operates six mills, Pa., Ohio and W. Va.
37,700
34,100
75.500 2.339.400 5,142,000
working all crews on four six-hour shifts.
5,200
4,200
7,100 226,900 360,000
Ga., Tenn. and Va.-.
1,200
2,100
1,700 100,300 240.900
At the Falcon Works in Niles of the Empire steel CO.. 15 sheet mills, Colo.,Utah and Wash.
which operated last week, are inactive. Youngstown Sheet & Tube has
44,104
40,400
86,300 2,666,600 5-.743,900
United States total-suspended two blast furnaces, both at the Campbell plant in Niles.
7,733
6.733
The Newton Steel Co. is maintaining 50% schedules at its Newton Daily average
14,383
9,164
19.738
Falls plant. The 'Fruscon Steel Co. is active at 65%, and the General
a Minns one day's production first week in January to equalize-=mbar
Fireproofing Co. at 70%•
of days in the two years. b Subject to revision. c Revised.
Anthracite Shipments Declined in November 1930.
Shipments of anthracite for the month of November 1930,
as reported to the Anthracite Bureau of Information, Philadelphia, amounted to 4,200,047 gross tons. This is a decrease
as compared with shipments during the preceding month
of 1,977,804 tons, and when compared with the month of
November, 1929, shows a decrease of 415,417 tons. Shipments by originating carriers (in gross tons) are as follows:
Month of—
Reading Company
Lehigh Valley RR
Central RR. of New Jersey
Del. Lack. & Western RR
Delaware & Hudson 11.10. Corp
PennsylvaniaRR
Erie RR
N.Y. Ontario & Western Ry
Lehigh dc New England RR
Total
[Vori. 131.
I
FINANCIAL CHRONICLE
3964
O.1930. Nor. 1929.
1,006,240
1,274,043
661,348
972.074
421,422
577,024
746,290
865,283
590,948
864.406
459.284
601.753
415,529
656,172
120,635
82.791
193.768
284.305
Noe. 1930.
929,638
675,470
339,943
532,061
629,830
451,540
397,841
72.994
170,724
6,177,851
4.200,047
4,615,464
Oct. 1929.
1,184,487
1,108,769
615,505
899,533
913,307
569,500
724,952
167,354
294,322
6,477.72
Current Events and Discussions
The Week with the Federal Reserve Banks.
The daily average volume of Federal Reserve Bank credit
outstanding during the week ending Dec. 17, as reported by
the Federal Reserve Banks was $1,305,000,000, an increase
of $196,000,000 compared with the preceding week and
a decrease of $326,000,000 compared with the corresponding
week in 1929. After noting these facts, the Federal Reserve
Board proceeds as follows:
On Dec. 17 total Reserve Bank credit amounted to $1,297,000,000 an
Increase of $163.000,000 for the week. This increase corresponds with
Increases of $181,000,000 in money in circulation and $7,000,000 in member
bank reserve balances, offset in part by Increases of $18,000,000 in Treasury
currency and $8,000,000 in monetary gold stock.
Holdings of discounted bills increased $74.000,000 during the week, the
principal changes being increases of $42,000,000 at the Federal Reserve
Bank of San Francisco, $17,000,000 at New York, $10,000,000 at Cleveland and $4,000,000 at Richmond and a decrease of $3.000,000 at Atlanta.
The System's holdings of bills bought in open market increased 38,000.000.
of U. S. bonds $50.000,000 and of Treasury certificates and bills $64,000,000
while holdings of Treasury notes declined $39,000.000. Holdings of Treasury certificates and bills included a temporary certifcate amounting to
5109,000,000, as compared to $99,500,000 a year ago,issued by the Treasury
pending collection of the quarterly tax payments.
Beginning with the statement of May 28 1930, the text
accompanying the weekly condition statement of the Federal
Reserve banks was changed to show the amount of Reserve
bank credit outstanding and certain other items not included
in the condition statement, such as monetary gold stock and
money in circulation. The Federal Reserve Board's explanation of the changes, together with the definition, of the different items, was published in the May 31 1930 issue of the
"Chronicle" on page 3797.
The statement in full for the week ended Dec. 17, in comparison with the preceding week and with the corresponding
date last year, will be found on subsequent pages—namely,
pages 4014 and 4015.
Changes in the amount of Reserve bank credit outstanding
and in related items during the week and the year ended
Dec. 17 1930 were as follows:
Increase (+1 or Decrease (--)
Since
Dec. 17 1930. Dec. 10 1930. Dec. 18 1929.
+74.000,000
+8,000.000
+75.000 000
+6,000.000
--406.000.000
--57.000,000
+159,000,000
—40,000.000
TOTAL RES'VE BANK CREDIT__1,297,000.000 +163.000,000
4,584.000.000
+8.000.000
Monetary gold stock
1.822.000,000 +18,000,000
Treasury currency adjusted
—345,000.000
+263.000.000
+11,000,000
4,837,000.000 +181,000.000
Money in circulation
2 455.000,000
+7.000,000
Member bank reserve balances
Unexpended capital funds. non-mem411,000,000
ber deposits, &c
--99.000,000
+47.000.000
Bills discounted
Bills bought
United States securities
Other Reserve bank credit
331,000.000
252.000.000
692.000.000
22.000.000
—18,000.000
000,000. The present week's decrease of $91,000,000
follows a contraction in each of the 11 preceding weeks, making the falling off for the 12 weeks combined $1,214,000,000.
Loans "for own account" fell during the week from $1,269,000,000 to $1,184,000,000 and loans "for account of out-oftown banks" from $400,000,000 to $395,000,000 while loans
"for account of others" remained unchanged at $430,000,000.
The present week's total of $2,008,000,000 is the lowest
point these figures have reached since Jan. 3 1925, when the
amount stood at $1,980,598,000.
CONDITION OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL
RESERVE CITIES.
New York.
*Dec. 17 1930. Dec. 10 1930. Da. 18 1929.
Loans and investments—total
Loans—total
On securities
All other
Investments—total
8,003,000.000 8,280,000,000 7.929,000,000
5,706,000.000 5,896,000,000 5,927.000,000
3 248,000,000 3,310,000,00) 3,022,000,000
2,457,000,000 2.586,000,000 2,905,000,000
2,297,000.000 2,384,000,000 2,002,000,000
1,236,000,000 1,271,000,000 1,112.000,000
1,061.000,000 1.114,000,000 890,000,000
U.S. Government securities
Other securities
841,000.000
90,000,000
Reserve with Federal Reserve Bank
Cash in vault
797,000,000
80,000,000
Net demand deposits
Time deposits
Government deposits
5,855.000.000 5,947,000,000 5,715,000,000
1 216.000,000 1,360,000,000 1,210,000,000
25,000,000
43,000,000
Due from banks
Due to banks
78,000,000
99,000,000
1,211,000,000 1,104,000,000
Borrowings from Federal Reserve 13ank_
25,000,000
19,000,000
93,000,000
911.000,000
88.000,000
Loans on sect's. to brokers & dealers;
For own account
1 184,000,000 1,269,000,000 832,000,000
For account of out-of-town banks
395,000.000 400.000,000 750,000,000
For account of others
430.000,000 430,000,000 1,804,000,000
Total
On demand
On time
Loans and investments—total
Loans—total
2.008.000,000 2,099,000.000 3,386,000,000
1 475.000.000 1.551.000,000 2,943,000,000
534,0011,000 547,000,000 443,000,000
Chicago.
2,061,000,000 2,018,000,000 1,907.000,000
1.487,000.000 1,475,000,000 1.538,000,000
On securities
All other
Investments—total
U.S. Government securities
Other securities
Reserve with Federal Reserve Bank
Cash In vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowings from Federal Reserve Bank_
Returns of Member Banks for New York and Chicago
Federal Reserve Districts—Brokers' Loans.
Beginning with the returns for June 29 1927, the Federal
Reserve Board also commenced to give out the figures of the
member banks in the New York Federal Reserve District,
as well as those in the Chicago Reserve District, on Thursdays, simultaneously with the figures for the Reserve banks
themselves, and for the same week, instead of waiting until
the following Monday, before which time the statistics covering the entire body of reporting member banks in the different
cities included cannot be got ready.
Below is the statement for the New York member banks
and that for the Chicago member banks for the current
week as thus issued in advance of the full statement of the
member banks, which latter will not be available until the
coming Monday. The New York statement, of course, also
includes the brokers' loans of reporting member banks.
The present week's totals are exclusive of figures for the
Bank of United States in this city, which closed its doors on
Dec. 11 1930. The last report of this bank showed loans
and investments of about $190,000,000. The grand aggregate of broker's loans the present week records a decrease of
$91,000,000, the total on Dec. 17 1930 standing at $2,008,-
841.000.000
79,000,000
874,000.000
613.000,000
861.000,000
614,000,000
885,000,000
653,000,000
574.000.000
543,000.000
369,000,000
273,000,000
301,000,000
239.000.000
304,000,000
161,000,000
208,000,000
194,000.000
15,000.000
192,000,000
14,000,000
179,000.000
18.000.000
1 306.000.000 1.328.000,000 1.239,000,000
617.000.000 616.000.000 534,000,000
31.000.000
9,000,000
.41
142.000.000 155,000.000 126,000,000
358,000,000 335.000.000 313,000,000
1.000.000
24.000,000
'Exclusive of gigures for one bank in New York City, closed Dec. 11. Last
report of bank showed loans and investments of about 5190,000,000.
Complete Returns of the Member Banks of the Federal
Reserve System for the Preceding Week.
As explained above, the statements for the Now York and
Chicago member banks are now given out on Thursday,
simultaneously with the figures for the Reserve banks themselves, and covering the same week, instead of being held
until the following Monday, before which time the statistics
covering the entire body of reporting member banks in 101
cities cannot be got ready.
In the following will be found the comments of the Federal
Reserve Board respecting the returns of the entire body of
reporting member banks of the Federal Reserve System for
the week ended with the close of business on Dec. 10:
The Federal Reserve Board's condition statement of weekly reporting
member banks In leading cities on Dec. 10 shows decreases for the week of
574,000.000 in loans and investments and $17.000.000 in time deposits,
and increases of $6,000,000 In net demand deposits and 57.000,000 in borrowings from Federal Reserve Banks.
Loans on securities declined $26,000.000 at reporting banks in the NOW
York district and Increased $22,000.000 in the Chicago district and $7,000.000 in the San Francisco district, while all reporting banks show no net
change for the week. "All other" loans declined 349,000,000 In the Now
DEC. 20 1930.1
FINANCIAL CHRONICLE
York district, $19,000,000 in the Chicago district, 87,000.000 in the Boston
district, $6,000,000 in the Philadelphia district, $5,000,000 in the Minneapolis district and $91,000,000 at all reporting banks.
Holdings of U. S. Government securities increased $52,000,000 in the
New York district and $49.000,000 at all reporting banks. Holdings of
other securities declined $44.000,000 in the New York district and increased $6,000,000 in the Philadelphia district, all reporting banks showing
a net decrease of $34,000,000.
Borrowings of weekly reporting member banks from Federal Reserve
banks aggregated $106,000.000 on Dec. 10, the principal changes for the
week being an increase of $16,000,000 at the Federal Reserve Bank of
New York and a decline of $7,000,000 at San Francisco.
A summary of the principal assets and liabilities of weekly reporting
member banks, together with changes during the week and the year ended
Dec. 10 1930, follows:
Increase (+) or Decrease (—)
Since
Dec. 10 1930. Dec. 3 1930,
Dec. 11 1929.
Loans and investments—total__ _23,242,000.000
—74,000.000
+320,000,000
Loans—total
18,426,000,000
—90,000,000
—949.000,000
7,769,000,000
8,656,000,000
—91,000,000
—49,000,000
—901,000.000
8,816,000,000
+16,000,000 +1,269,000,000
3,144,000,000
3,672,000,000
+49,000,000
—34,000,000
+425,000.000
+844,000,000
Reserve with Federal Res've banks 1,849,000,000
Cash In vault
269,000,000
+33,000,000
+39,000,000
+82,000,000
—11,000,000
Net demand deposits
Time deposits
Government deposits
13,914,000,000
7,355,000,000
+6,000,000
—17,000,000
+138,000.000
+657,000.000
—27,000,000
1,492,000,000
3,339,000,000
—34,000,000
—118,000,000
+372,000,000
+577,000,000
106,000.000
+7,000.000
—387,000,000
On securities
All other
Investments—total
U.S. Government securities_ _
Other securities
Thie from banks
Due to banks
Borrowings from Fed. Res. banks-
Summary of Conditions in World Markets, According
to Cablegrams and Other Reports to the Department of Commerce.
The Department of Commerce at Washington releases for
publication Dec. 20 the following summary of market eon
ditions abroad, based on adyices by cable and radio:
ARGENTINA.
Business for the week ended Dec. 12 continued dull, with thefurther weakl
ness of the peso exchange as a disturbing factor. However, world cereaprices improved somewhat and the ocean freight cargo engaged for December and January is considerably above that for the corresponding months
of the previous year and these constitute factors ofencouragement. Weather
conditions continued to be favorable and with splendid pasture conditions
and sustained meat prices the outlook for the livestock industry is
satisfactory. The Provisional Government issued instructions encouraging
the administrative departments to give preference in tender calls to
nationally produced articles whenever passible. The National and
officials continue to give their attention to financial matters provincial
and to lay
further plans for the reduction of expenditures in the 1931
budgets. The
arrears of the National Mortgage Bank were reported as
amounting to
90,000.000 paper pesos on Sept. 13, but in view of the fact that its capital
and reserves total about 200,000,000 paper pesos no difficulties are
expected.
The Municipality of Buenos Aires announced a 6% reduction in its expendi_
tures in its 1931 budget. It is reported that negotiations are in progress
for
the purpose of refunding the recent Baring loan of £5,000,000 due on Dec
31. (Paper peso about $0.40.)
•
AUSTRALIA.
Holiday sales in Australia are small In volume despite reductions in prices.
Subscriptions to the .C28,000,000 conversion loan closed on Dec. 15. A
total of £14,600,000 have been subscribed to date and the success of the
loan is being watched keenly in business and banking circles. Exchange
difficulties continue to increase. Budget deficits of the Commonwealth
and State Governments for the five months ended with Dec. 1 aggregate
£19,000,000. The butter bounty has been reduced to 331 pence per pound.
BELGIUM.
Belgian industry shows a slight improvement and it is hoped that
1931
will witness an upward trend. A better metallurgical demand and higher
glass exports were the outstanding features of the past month, while
most
other industries marked time. Automobile sales have been
stimulated
by the automobile show and the holiday season also reacts favorably upon
the retail trade, but merchants aro restocking with caution, awaiting
developments after the new year. Money continues plentiful with
the call
rate between banks quoted at 1%, and offers exceeding demand.
Tax
collections in October totaled 653,000,000 francs, showing a
decline of
261,000,000 when compared to October 1929. The recent 1931
budget
proposals have created no unfavorable comment and the situation of
public
finances is viewed with optimism. A new law authorizes the Belgian Government to reimburse on Feb. 1 1931 the $30,000,000 8% loan secured
from
the United States in 1921, and originally scheduled for reimbursement
in 1941. This will be replaced by a 41.% loan with European interests.
(Belgian franc about $0.28.)
BRAZIL.
Business in Brazil for the week ended Dec. 12 continued to be
dull.
Imports were light. Coffee shipments were heavy but prices were slightly
lower. Exports of coffee from Santos for the week ended Dec. 11
amounted
to 310.557 bags. Several compositions of important firms and particularly
of textile companies have taken place. The milreis exchange has steadily
firmed from 10 milreais 550 reis to 10 mllreis 300 reis to the dollar.
The
new exchange regulations are interpreted as allowing nearly
remittances for commercial transactions, but not exportationunrestricted
of capital.
An order has been issued prohibiting the sale of exchange to banks or
firms
abroad, the purpose of the prohibition being to prevent exchange
speculation. The moratorium has been extended for a further 60 days on
obligations
maturing in December, but during this period of extension
semi-monthly
payments of 25% must be made to liquidate the indebtedness.
The percentage of withdrawals from interest bearing bank accounts
allowed has
been reduced from 33% 00 25%. The Government is considering
initiating
a highway construction program in order to relieve unemployment.
CANADA.
A slight improvement is reported in wholesale and retail trade
but
Christmas buying so far is below expectations. Except in textiles,
manufac-
3965
turing continues slow and little improvement is looked for in the immediate
future. The collection situation is practically unchanged from last week,
The Great Lakes navigation season closed Dec. 12. Eastern steel mills
are operating far below capacity but a recent advance in price of $1.00 per
ton is expected to improve conditions.
The Canadian National Railways has placed large orders for rails for 1931
delivery. Demand for passenger cars in both the Maritimes and Quebec
Province continues below the seasonal normal but parts,especially for trucks
are moving well. The annual Montreal automobile show will .be held
from Jan. 17 to 24. A normal turnover is reported in winter hardware
lines. Sales of agricultural implements are light and buying in specialty
lines is proceeding cautiously. Winter sporting goods are in good demand.
In Ontario sales of chain food stores are holding up fairly well: November
sales of one firm are reported to have been only 3% less than last year.
Wholesale fruit demand is improving. The shoe trade is dull but there is a
fair demand for leather gift goods. Fine chemicals for laboratory and professional work are maintaining a good sales volume but prices are tending
lower. Book paper is in demand but sales of wrapping paper are small.
Electrical specialities are enjoying a fair demand in the Prairie Provinces
but other electrical goods are moving slowly. Hardware lines are quiet,
wholesalers reporting sales 25% 00 30% below last year's. Rubber products
are selling fairly well and a brisker demand is noted for specialties. Textile
demand is quiet. The contract has been let for the steel required for a
8600,000 bridge at Winnipeg, an unemployment relief project financed in
part of Dominion funds.
British Columbia imports of toys and novelties have been rather heavy
and seasonal and gift hardware items are moving in some volume In that
province. Heavy hardware lines are quiet and sales of paint and accessories
have declined slightly. Groceries are moving fairly well. Demand for
shoes is slow but improvement is looked for soon.
Reversing its policy of direct selling overseas, the Candian Wheat Pool
has announced its intention to close immediately its agencies in London
and other European centers. All ordinary established facilties for marketing wheat will be used by the Pool in the future. Net losses of nearly 4 cents
were recorded by the Winnipeg wheat market in the week ended Dec. 12,
No. 1 Northern cash wheat closing on that date at a new low of 56 4 cents.
Export clearances during the four weeks ended Nov. 28 totaled 21,250.000
bushels, a slight improvement over the weekly average of the two preceding
weeks and ocean shipments during the week ended Dec. 5 amounted to
5,560.000 bushels. Stocks of Canadian wheat in store on that date were
nearly 212,668.000 bushels.
British Columbia mineral production for the year 1930 is expected to
show a decrease of approximately 20% in value from 1929 figures although
increased volume is anticipated for silver, lead and zinc. Gold, copper and
coal output is expected to be under last year.
CHINA.
Outlook for business in China appears to be promising,and a greater measure of confidence in the present Government is being generally expressed in
trade circles. Railway traffic is showing some improvement, but the program for their rehabilitation under which much new equipment is required
will necessitate considerable financial arrangements. It has been officially
declared that Cninese New Year settlements will adhere to the Western
calendar in place of the Chinese lunar calendar heretofore applicable.
Under the latter calendar Chinese New Year begins on Jan. 19 1931, which
would thus provide 19 additional days for the settlement of business accounts. The volume of new business passing in Hong Kong is considered
the lowest level of the year. Trade attention continues to center on the
pOsition of the Hong Kong dollar, which declined during the week to new
low levels. • Current quotations are now approximately in line with silver
parity. All South China markets are reported weak, and bankers and traders express the opinion that no immediate improvement can be expected.
Further depreciation in silver currency during the latter part of the week has
now practically stopped with the result that import business in North China
showed some slight improvement in the early part of the month. Export
shipments are possible under the present low silver levels, but transactions
to date are limited. New York and other foreign markets are apparently
still disinterested. Railway business has recently been of considerable
importance, with transactions reported closed with the Peking-Mukden
line for the purchase of various railway materials, including locomotive
parts and car fittings, worth 500,000 Tientsin taels, or approximately
8170,000. The purchasefrom a British firm of 100.000 Oregon pine sleepers
at 80.60 each is also reported. The Tienstin American Consulate General
reports that November shipments to the United States aggregated $1,766,000,compared with $3,827,000 in that month last year.
Manchuria's trade has experienced no improvement, according to a radiogram dispatched from Mukden. Presentdullnessoftradeis theresult chiefly
of continued weak foreign demand for Manchurian products. Farmers
refuse to sell at the present low price levels with the result that heavy
stocks of produce remain in their hands. This situation is causing a shortage
in money, high interest rates, and in merchants experiencing difficulty
with collections.
GERMANY.
German business in mid-December is preparing to face what is expected
to be the most difficult winter since 1923. It is admitted That the actual
decline of production and consumption is not seriously greater than in
former periods of business depression, but the present situation is complicated by the psychological attitude of the public which to a greater
extent than formerly participates in discussions of economic problems and
finds it difficult to maintain business morale under the stress of successive
disappointments. It is already clear that the Christmas buying pick-up
will fall below last year and probably will not be sufficient to prevent a
steady though small increase in unemployment during December. The
peak of unemployment is expected in February, doubtless exceeding 4,000.000. The number of unemployed receiving ordinary relief on November 15, totaled 1,661,159. an increase of 170,000 within a month. Recipients of emergency relief on the same date numbered 537,613, a gain of
49,000. Favorable factors include a satisfactory harvest, a measurable
gain in exports during October and a conviction that toe process of liquidating merchandise stocks cannot go much further witnout stimulating
a new demand at the present low prices. The Reichstag's ratification of the
Government's financial measures, accomplished with a majority of 38,
gives the Government a new lease oflife over the turn of the year,and allows
a postponement of major political controversies until the close of the fiscal
year, April 1 1931. The Federal Economic Council recommends legal
proceedings against price maintaining rings In the coal, brick, tile and carpet
Industries, and it also urges the necessity of a reduction in iron prices following the acceptance of the arbitration award in the metal workers'
strike. The Government has decided to form a committee, headed by
Chancellor Bruening, for the co-ordination of price reduction activities,
The official wholesale price index stood at 120.1 at the end of November,
a decline of 15.2% during the past year. The November drop in the cost
of living index by 1.9% to 143.5%,reflects the Government campaign for a
reduction in retail prices.
3966
FINANCIAL CHRONICLE
JAPAN.
Some improvement is noted in the raw silk industry by the advance in
price of 10 yen per bale. Prices are firm at the advanced level. The stock
market is more active. Operating returns of leading companies for the second half of 1930 show a sharp contraction in profits and many leading
companies announce dividend reductions from 1 to 5%. The Kanaguruchi
Spinning Co.alas reduced its current dividend from 28 to 25%, the lowest
In many years. Cotton spinning stocks are now 43% above the June low.
[VOL. 131.
and three oil mills operating. The local abaca market is quiet but steady.
Trade with London is more quiet because of the attempt of manufacturers
to force prices to lower levels and the United States market is stagnant,
with local dealers sold out until January or later.
PORTO RICO.
All crops in Porto Rico, excepting tobacco, have been favored by recent
weather conditions. Present prospects for the coming sugar crop, the
harvest of which is just beginning, are for a crop of about 10% less than
the record yield of last season. The drouth, which rather seriously interMEXICO.
the recent heavy rains, will probably
Exchange on Dec. 10 reached 2.26 gold pesos per dollar or 2.60 silver ferred with the tobacco seedlings, and
in the tobacco crop being somewhat below normal in quantity and
result
pesos per dollar but strengthened on Dec. 11 owing to reports that the Mexigrapefruit crop maturing in the
can government would take more effective steps to bolster exchange. Col- quality. Continued prospects for a fine
spring and early summer afford encouragement to the growers,although
lections continue difficult due to the exchange situation and the general late
current fruit shipments are restricted by low prices. Some of the fruit
depression. A vigorous "Buy in Mexico" campaign has been launched by
canneries, now operating on a small scale, will increase their activities
Monterrey manufacturers and is receiving the support of the FederaIauthornext week, but large-scale operations will not commence until the second
Wes.
week in January.
NETHERLANDS.
The general business feeling in the Netherlands was probably lower In
November than at any time since the depression started, and no improvement is expected before next spring. The retail holiday season trade is far
below expectations and is confined largely to essential goods notwithstanding active advertising campaigns; retailers are now announcing further
price reductions. Unemployment has again increased, and commercial
failures are more numerous than in the corresponding period of 1929.
Industrial activities in November were at a lower level and shoe, textile,
machine shop, electrical, shipyard, furniture production was curtailed.
The radio industry is operating at a moderate level but profit margins have
been greatly reduced due to keen competition. The margarine industry
is making satisfactory profits owing to the low prices of raw materials:
the dairy industry is well occupied, but butter prices prices are considered
low for the season. The activities of the lumber consuming industries are
generally below normal, with the possible favorable exception of harbors and
waterways. Building and construction activities are seasonally low. The
number of laid up inland and ocean going craft is increasing, and freight
rates-particularly for inland traffic-are unusually low.
NETHERLAND EAST INDIES.
The anticipated revival of business in connection with native holidays
has not yet appeared, and as a result bazaar trade continues quiet. Merchants, however, are hopeful that buying will commence early in January.
The raw commodity situation is unchanged, with trading confined to
small lots, and prices are holding firm.
Australian Loan Success-$140,000,000 Conversion
Issue Lacks Less Than $10,000,000.
From Canberra, Australia, Dec. 16, a message to the
New York "Times" said:
Acting Prime Minister Fenton announced to-day that the Australian
conversion loan had been a complete success. The list, he said, would
remain open until the full $140,000.000 had been subscribed directly by the
public, but Monday night 8130,000,000 was banked and there was more in
transit, while of the $135,000,000 obligation which the loan was floated to
meet $25,000,000 is not yet due.
Politically the success of the loan is bound to strengthen the moderate
section of the Labor party under the leadership of Prime Minister Scullin,
which has a majority in the Cabinet, against the extreme element, which
has a majority In the caucus.
Closing of Vladivostok Branch of Bank of Korea By
Soviet Authorities-Impose $1,300,000 "Duties"
Charge on Branch-Japan's Protest.
Under date of Dec.18 Associated Press advices from Tokio
(published in the New York "Evening Post") said:
NICARAGUA.
The Soviet authorities to-day closed the Vladivostok branch of the
Wholesale business in Nicaragua has fallen off over 60% while retail Bank of Korea, sealing all books, documents and valuables and ordering
hand
on
stocks
that
reported
is
It
65%.
of
decrease
business has shown a
the bank to pay 2.600,000rubles(about $1,300.000 nominal value)"duties."
are low and badli, deteriorated. Collections continue poor and extreme
The action follows the compulsory examination of the branch's books last
caution Is necessary in the granting of credit. The 1930-31 Nicaraguan Summer when the Soviet Government accused it of carrying illegal exnearly
which
of
coffee crop is estimated at 300.000 sacks of 150 pounds each,
change transactions.
25% is from the Matagalpa region. The latest quotation on washed coffee
After a consultation between the Ministers of Foreign Relations and
is 10% cents with Matagalapan coffee being quoted at 13 cents. Customs Finance and the President of the Bank of Korea authorization was given
revenues show a monthly decline from January to August, the total for the to close the branch at Vladivostok altogether.
eight months aggregating $1,500,000, as compared with over $1,900,000
A Japanese Foreign Office statement to-day regarding the closing of the
for the corresponding period of 1929. It is reported that the net receipts Vladivostok bank makes clear that the Government takes strong exception
of the railroad average about $16.000 monthly, which respresents a decrease to the Soviet action, the note stating that the bank authorities have been
of over 50% compared with the previous year. Only one gold mine is ordered to gather the material necessary to counter the Soviet allegations.
reported to be active at the present time.
The Foreign Office declares that the Government "will not hesitate to
PANAMA.
adopt determined steps" if it is proved that the Soviet action will affect
Panama business continues sluggish with collections poor and credit tight. the Japanese fishery rights secured by treaty, if they are satisfied that the
It is reported that the Government is running into a deficit. The Arraijan bank has not acted illegally and if it is found that members of the bank's
road construction, the Albrook air field .projects, and the hope of work staff were kept in detention or punished.
starting on Madden Dam in the near future give promise of a relatively high
Further Associated Press advices, from Tokio Dec. 19
tide of employment, while the visit of the combined American fleets during stated:
the latter part of February willstimulate retail sales and leave a large amount
An international agreement, which may have repercussions of a serious
ofcash in the country. A Bill has been introduced in the National Assembly
Russia as a conseproviding for the establishment ofcustoms and immigration offices in Balboa character, developed between Japan and Communistic
Vladivostok branch of the Bank of
and Colon, under the provisions of Article 9 of the Panama Canal Treaty. quence of a Moscow order closing the
Korea
yesterday.
Two other Bills were also Introduced, one calling for a tax of $10 for each
The Japanese Foreign Office cabled the Japanese Ambassador at Moscow
showing of sound pictures not in the Spanish language and the other proto
inform
the Soviet Government that Tokio considers the closing an unimof
each
on
grains
bottle
cents
over
400
four
of
viding for an excise tax
justifiable and unfriendly act, and to request withdrawal of the closing
ported soft drinks.
order. The message also asked that the Moscow Government enter into
UNITED KINGDOM.
conversations with a view to reaching an amicable settlement.
in
industrial
production
British
of
index
Trade
of
Board
The Government
The Soviet Embassy here meanwhile issued a statement explaining
the third quarter of 1930 shows a decline of3.5% as compared with that for that existence of the Bank there was contrary to the Soviet economic
the second quarter, and a decline of 10.1% as compared with the index for policy. The statement emphasizes that the branch was the sole bourgeois
such production in the third quarter of 1929. Based on the quarterly bank in Russia. Permission for its operation, It was said, never was given
average for 1924 as 100, the indexes for the three separate quarters were by the Soviet Government, but only by local authorities.
110.7 for July-September, 1929; 103.1 for April-June, 1930: and 99.5 for
The branch was closed yesterday, after examination of its books last
July-September. 1930. For manufacturing activity alone (I. e., industrial Summer to determine if it had been guilty of exchange operations, which
indexes
the
production as comprehended above, less mining and quarrying)
were illegal under the Soviet laws. A fine of 2,600,000 rubles "duties"
were 114.8, 107.1, and 103.4, respectively.
(about $1,300,000 nominal value) was assessed against the institution in
The indexes for the Industrial group which were calculated in the general connection with the closing.
index, were as follows (for those which could be stated): Mines and quarries,
Shortly after notification of the Soviet action the Japanese Foreign
94.4 for the third quarter of 1929, 87.4 for the second quarter of 1930. Office stated that the Government would "not hesitate to adopt deterand
iron
steel,
and
95.5.
1930;
80.3;
of
113.7,
quarter
and 84.2 for the third
mined steps if it is proved that the Japanese fishery rights secured by
non-ferrous metals, 114.6, 123.7, 123.6: engineering and shipbuilding, treaty are affected, if it is proved satisfactorily that the bank has not
119.3, 126.6, and 111.6; textiles, 91.4, 78.2, and 71.3; chemical and allied acted illegally, and if it is found that members of the bank's staff were
trades, 120.3, 101.3, and 106.7; leather boots and shoes, 95.2, 103.8 and kept in detention or punished."
99.7; and food, drink and tobacco, 111.8, 104.9 and 108.3.
From Vancouver (B. C.) Dec. 19, we quote the following
According to declared values, British overseas commerce in November,
as compared with that of November 1929, showed declines of 26.6% in Associated Press accounts:
inports, 30.2% in exports, and 17% in re-exports. The totals were as folBritish Columbia salmon packers were watching for developments to-day
lows: imports, £79,410,000; exports, £44,050,000; and re-exports, £6.840,- in connection with the Soviet Government's closing of the Vladivostok
£46,922,000
were,
£90,860,000,
October
respectively,
for
totals
000. The
branch of the Bank of Korea.
and £7,209,000.
The Bank of Korea was the medium of payment by the Japanese GovernThe Board of Trade index number of wholesale prices, based on 1924 ment for salmon-fishing concessions in Siberia, which they have held since
September
for
for
81.9
69.5
October 1929.
monthly averages as 100. was
1904. If the action means nullification of the treaty, as indicated, control
Of somewhat less than 20% of the world's canned salmon market will pass
1930 and 68 for Octo' er 1930.
The Department's summary also includes the following Into Soviet hands. packers are considering the possibility ofa serious dumpBritish Columbia
with regard to the Island possessions of the United States:
ing of canned salmon by the Russians on the world markets.
PHILIPPINE ISLANDS.
Although retail trade shows Improvement due to Christmas buying, France Puts 35 Bankers in Jail-Charges Pending in Courts
it is expected that the volume of holiday business will be about 70% of
Against 146 Others-Action Follows Investigation of
last year's total. No improvement is noted in credits or collections and
local firms continue exercising strict supervision over new business. ImAffairs of Oustric Bank and Other Financial Instituporters are selling orders only to dealers with financial capacity. Textile
tions.
goods which have recently arrived have moved fairly well, but the total
textile business is far below normal and no Improvement in future orders
The following Paris Associated Press advices, Dec. 16,
is noted. Reports indicate that several large Chinese operators contemplate are from the New York "World":
liquidation of textile business until conditions Improve. The copra market
Minister of Justice Henri Cheron's announcement today that "181
continues steady although a slightly weaker undertone, due to outside
bankers or financiers, thirty•five of whom are in jail," were charged before
influence, is noted. Demand continues satisfactory with light arrivals
DEC. 20 1930.]
FINANCIAL CHRONICLE
the Paris courts alone has resulted in considerable stir in French financial
and economic circles.
The minister's announcement followed an investigation begun about six
weeks ago by the department after the failure of several banks, among
them the Oustric bank. The latter's closing created a scandal that resulted in the resignation of three members of the Tardieu cabinet, and
was held indirectly responsible for the downfall of the cabinet itself.
It was already known that several arrests, including that of Albert
Oustric, -head of the closed bank, had been made, but the number was
not known to be so large.
A communique which was issued from the Ministry of Justice, headed
"For the Protection of Savings" and bearing on the situation, caused
widespread comment in the afternoon newspapers, most of which said the
announcement would have just the opposite effect on prospective depositors.
In Bourse circles brokers and bankers made no secret of their conviction
that the 181 men referred to by Minister Cheron was mostly Curb and
Stock Exchange speculators who had no connection with the Oustric affair.
A communication was issued this afternoon by Roger Lelideux, president of the Union of provincial and Paris bankers, which helped to clear
up the atmosphere of uncertainty and cheered small depositors. It read:
"Our union, comprising 207 banking houses of Paris and the provinces,
has not one of its members among the 'bankers' referred to by Minister
Cheron as being in jail or under charges."
The Oustric Bank suspension was referred to in these
columns Nov. 8 page 2972 and Nov. 15, page 3130.
French Troops Quit Sarre, Held Since Armistice—Evacuation Follows Stormy Negotiations Begun by Germany
to Obtain Mines.
United Press advices from Paris, Dec. 10, are quoted
as follows from the New York "Herald-Tribune":
Another historic move in post-war readjustments began today when
French troops that have occupied the rich Sarre coal region began evacuation of the area held since the close of the World War. The
military
evacuation will continue until the entire district has been divested
of
French soldiery, long a guaranty to France's rights in the "No
Man's
Land of Europe."
The Sarre mines were awarded to France for fifteen years, with
the
exception of the western strip privately owned by the Frenckholz
Society, under the Treaty of Versailles. They will revert to Germany
in 1935. Hence, the evacuation today does not change the status of the
ownership of the mines in any way. However, it was regarded as another
gesture in the policy of friendship toward Germany, which has been advocated and pushed by Aristide Briand, Foreign Minister, in recent years.
The evacuation follows stormy negotiations begun several months ago
by Germany, in an effort to persuade France to give up the Sarre mines
prior to 1935. France, however, refused to agree to the premature
relinquishment of ownership, and even the evacuation was widely opposed.
The French received the Sarre mines in compensation for French coal
mines destroyed during the German occupation of northeastern
France
during the war. The output of the French-controlled mines has
been
13,000,000 tons a year, and the output of the Frenckholz mines,
500,000
tons annually.
In 1935 the Sarre basin's people will have an opportunity to
whether they want to become part of Germany or part of France. vote
area has been under the aegis of the League of Nations for the The
last
eleven years, but the treaty arranged that in fifteen years a
plebiscite
should be held to determine the Sarre's future status. It is generally
admitted that the populace, being predominantly German, will vote to
adhere to Germany.
110
All Outstanding Belgian Bonds of External Loan Due
Feb. 1 1941 Called for Redemption.
All the outstanding The Kingdom of Belgium external
loan 20-year 8% sinking fund gold bonds, due Feb. 1 1941,
have been called for redemption at 1071h% as of Feb. 1 1931,
according to announcement made Dec. 16 by J. P. Morgan &
Co. and Guaranty Trust Co. of New York as the bankers
under the contract. These bonds were originally issued in
February 1921, in the amount of $30,000,000, the amount of
bonds outstanding having since been reduced through operation of the sinking fund to $16,875,000.
In calling these bonds for redemption at this time, the
Kingdom of Belgium, it is stated, is taking advantage of
their option to retire all outstanding bonds at the earliest
date provided for in the contract. Under the terms of the
contract, the bonds were non-callable except for the sinking
fund during the first 10 years after their issuance. The
action of the Belgian Government in providing for the retirement of these bonds follows the redemption last June 1 of
$32,000,000 The Kingdom of Belgium 25-year 7% gold
bonds, representing the balance outstanding at that date
of the $50,000,000 loan issued here in 1920. The redemption
of the 8% loan next February will mean that the highest
interest rate on any Kingdom of Belgium dollar issue
remining outstanding will be 7%.
The formal notice being issued by the bankers to holders
of the 8% bonds states that the redemption price
will be
paid upon surrender on or after Feb. 2 1931 of each
of the
bonds, together with all coupons for interest thereon
not
matured on such date, either at the office of J. P.
Morgan &
Co., 23 Wall Street, or at the principal office of the
Guaranty Trust Co. of New York, 140 Broadway. The
notice
further calls attention to the fact that interest on the
bonds
will cease to accrue on and after Feb. 1 1931.
3967
George E. Roberts Back from Session of Gold Body—
Report of League of Nations Group Not to be Ready
Until Late in Next Year.
George E. Roberts, Vice-President of the National
City
Bank, who has just returned from Geneva, where he attented a meeting of the gold delegation of the financial committee of the League of Nations, declared on Dec. 11 that
the delegation was expected to reconvene in Geneva on Jan.
12 to draft the final form of a report which it will deliver to
the financial committee when the latter body meets on Jan.
15. We quote from the New York "Herald Tribune" of
Dec. 11 which added:
Mr. Roberts said that he did not expect to return to Europe to
January 12 meeting. Another meeting of the delegation will be attend the
held probably in April, at which time the delegation hopes to be able to
begin
consideration of the scope and final details of its complete report.
The delegation has not yet decided whether the report it renders on
Jan.
15 will be made public, and until definite decision on that point has
reached Mr. Roberts declined to discuss the phase of the gold problem been
with
which it will deal. The delegation made public a few months
ago its
interim report, dealing with gold protection and suggesting measures first
which
central banks might employ when the time arrievs, some few
years hence,
when gold production will begin declining rapidly.
The delegation is charged to study the fluctuations in the
purchasing
power of gold and the effects on the economic system which
they entail.
Mr. Roberts declined to state what he expected the final report to
contain,
butsaid that he expected it to stick closely to the scope laid down
for the gold
delegation by the financial committee without any incursions
into such controversial fields as the maldistribution of gold.
Albert Janssen, of Belgium is Chairman of the delegation. In
addition to
Mr. Roberts, who was appointed to fill the vacancy created by the
resignation of Professor 0. M. W.Sprague, of Harvard,other members Include
Sir
Reginald Mont and Sir Henry Strackosch, of Great Britain: Professor
Gustav Cassel, of Sweden; Professor M.J. Bonn, Germany; Professor A. Beneduce,of Italy;Counte de Chalendar,of France; Dr.F.Mylnarski,of
Poland:
Dr. V. Pospisll, of Czechoslovakia, and Dr. L. J. A. Trip, of Holland.
Payment of $122,989,450 on Dec. 15 by Great Britain and
Other Foreign Nations on Account of War Debts.
Total payments of $122,989,450 were received on Dec. 15
by the Treasury Department at Washington on account of
foreign war debts. Payments were made by 11 nations; the
largest amount was paid by Great Britain, namely $94,390,000, of which $28,000,000 represented principal and $66,-
390,000 interest. The following statement regarding the
Dec.15 payments was issued by the Treasury Department:
The Treasury has received payments amounting to $122,989.450
.22,
due to-day (Dec. 15), from the following foreign governments
on account
of their funded indebtedness to the United States, of which
$30,854,052.37
was for account of principal, and $92,135,397.85 for account of
interest.
All payments were received in cash.
Principal.
Interest.
Belgium
Czechoslovakia
Estonia
Finland
France
Great Britain
Hungary
Italy
Latvia
Lithuania
Poland
$1,500,000.00
$1,625,000.00
150.000.00
129.885.00
19,325,000.00
28,000,000.00 66.390,000.00
11,755.00
28,804.73
1,260.625.00
50,000.00
93,528.11
1,287,297.37 3,082,555.01
55,000.00
630,854,052.37 $92,135,397.85
Of the principal payments received, the sum of $28,995.117.64
was for
account of the obligations originally acquired for cash advanced
under the
authority of the Liberty Bond Acts. Under the terms of these acts
all such
cash payments of principal must be applied to debt retirement. The
abovementioned amount has been applied to the Treasury certificates
maturing
to-day. The balance of the payments amounting to $93,994,332.58
is
available to meet current expenditures of the Government and
was so
treated in the estimates submitted in the President's last budget
message.
Financial Secretary of British Treasury in House of
Commons Asserts Great Britain Has Paid Us
$700,000,000 More Than She Has Received from
Germany, &c.
England has now paid on the war debt account to the
United States $700,000,000 more than she has received from
German reparations and war debt payments from her Continental allies, according to a London cablegram to the
New York "Times." This statement was made Dec. 15 in
the House of Commons by F. W.Pethick-Lawrence, Financial Secretary of the Treasury, in reply to questions of a
Labor member concerning to-day's payment to the United
States of $94,390,000. The cablegram likewise said:
To-day's payment figured in the above estimate of the excess of
England's remittances to America over what she has received all
told from
European countries on account of the war.
That excess is almost $1,000,000,000, added Mr. Pethick-Law
rence. if
the interest on past payments and receipts be taken into account.
Germany Can Pay Allies to End, Says Finance Minister
Dietrich—Private Memorandum Contradicts Official Berlin Declaration Moratorium Is Imperative.
From its Berlin correspondent Dec. 15 the New York
"Evening Post" reported the following (copyright):
German plans for obtaining a moratorium on Young Plan payments
were
upset to-day by a most unusual and dramatic Incident that
may have
reverberations of great political consequence.
3968
FINANCIAL CHRONICLE
By the allegedly accidental publication of a private memorandum of
Finance Minister Hermann Dietrich, the German thesis that a moratorium
must eventually be granted this country received striking refutation from
the least expected quarter. The memorandum revealed that in Herr Dietrich's personal opinion the formal operation of economic laws will continue
of her
to permit Germany to transfer to the allied account every pfennig
reparations' debt without difficulty.
financial
German
The importance of this view, coming from the highest
utterances of
authority, becomes apparent when it is compared with the
and other
Chancellor Heinrich Bruening, Foreign Minister Julius Curtius
expressed
members of the German Cabinet who have several times recently
demanded
be
cautiously but clearly the possibility that a moratorium might
run.
long
soon and must be demanded in the
Hinges on Financial Reforms.
Dietrich
Its importance becomes even more evident inasmuch as Herr
m
declares that there is only one circumstance that could hinder Germanyfro
out the
carry
to
failure
a prompt transfer of the reparations' debt, namely,
Government's program for finance reform and loss of confidence by American and other foreign investors in Germany's credit.
Herr Dietrich, however,emphasizes that if the finance program is carried
to pay
out, as it seems it will be. Germany should then be able to continue
the
since the normal interplay of economic laws will automatically provide
mechanism for the transfer.
Parker
S.
This view was that of Charles G. Dawes, Owen D. Young,
most
Gilbert and numerous expert observers, but it is the view that was
secret
bitterly opposed by German critics of the Young Plan. And it is no
German
that the German Government was expected by the masses of the
Plan was
people to make every effort to attempt to prove that the Young
[vol.. 131.
kept within a maximum limit of 3,000,000. This limit has already been
reached and will undoubtedly be considerably exceeded during the coming
winter. If this expert's opinion is sound and the anticipated increase
in unemployment during the coming winter is not promptly absorbed,
the problem of reparations will assume a much more serious aspect."
Despite the presence of a growing number of perplexing problems
Mr. MacT ean expressed confidence in the ability of Germany to weather
the existing political and economic crisis without permanent injury.
In view of an estimated deficit amounting to about $240,000,000 in
the current fiscal year, the report pointed out that the major efforts of
the Bruening Cabinet have been directed toward restoring the Government finances to a healthy condition and that to this end a courageous
program of reform had been initiated by the Chancellor. In furtherance
of this program it was recalled that the Ministry had proposed a reduction of 6% in all official salaries, including civil servants of the States
and communes.
Silver Prices Drop to All-time Low.
Reporting that bar silver established a new all-time low
5 of a
on Dec. 18 for the second time this week, declining 4
cent to 313 cents an ounce the New York "World" of
yesterday, Dec. 19, said:
unworkable.
their
Succinctly put, the German tactics were believed to be,first, to put
Young
household in order with finance reform so as to prove that the
continue
can't
Plan failure was not their fault and then to show that they
Minister has
payment. Now, however, the Government's own Finance
accomplished
been shown to hold privately the view that iffinance reform is
perhaps
there can be no hindrance to a smooth working of the Young Plan,
indefinitely.
Mistake Laid to Secretary.
"Berlhie
Herr Dietrich's extraordinary article appeared yesterday in the
explanation from
Tageblatt" and to-day appeared an equally extraordinary
prepared
had
Dietrich
an "official source." According to this source, Herr
and his
for the "'Fageblatt" an article on an entirely different subject
memorandum on
secretary, by mistake, took from his desk a private
"ratinor
reparations, which, it was averred, had not been written by him
fied" by him.
reparations
Herr Dietrich, it is announced, will publish his "real" views on
sceplater. The Berlin press receives this explanation with unconcealed the
sent in
ticism, asserting that it is much more likely that Herr Dietrich
forcibly
was
attention
his
article without realizing its significance until
called to its disastrous consequences by his Cabinet colleagues.
Plan payHerr Dietrich's figures over the actual course of the Young Germany
ments in 1930 were interesting. During the first six months alone
visible and
received 840.000.000 marks on long term foreign credits, while her
marks,
invisible export surplus for the year amounted to 1,500,000,000
making a total of2,340,000,000 marks against a totalreparations obligations,
plus interest, of 2,800,000,000 marks.
The previous low,established Tuesday Dec. 16 was 31 cents an ounce.
Yesterday's drop to a new low was the fourth in a little more than a
week. On Tuesday of last week bar silver declined to 33 cents, and on
Friday there was a further break to 3214 cents an ounce.
Silver in London was quoted at 14%cl, off 3-16d.
The drop occurred despite the announcement the Department of Commerce had been advised that the Mexican Congress had conferred special
powers on the President of that country to take necessary steps to improve
the position of exchange and silver currency in Mexico.
A New York silver broker said that the Mexican Government might call
in much of the paper currency and substitute silver pesos. A special law
prohibits the export of Mexican silver currency without Government consent. The substitution of silver for paper currency would greatly increase
the use and demand for the metal it was said.
The chief reason for the acute weakness of the metal at the present
time, according to brokers, is the activities of Chinese speculators. According to advices received in New York, speculators are short 50,000,000
Shanghai taels, the equivalent of 54.000,000 ounces of silver.
This condition is partly due to the belief that the new Chinese tariff on
imported goods will be come effective at the first of the year. Because of
this, Chinese merchants have been importing goods and commodities as
fast as possible in order to beat the tariff. To pay for their imports,
largely from European and Western countries, they had to buy gold exchange, and to pay for the gold they had to put their silver on the market.
This created a superfluity of silver in the markets of other countries where
It is not so easily absorbed as in China, which imports about 500,000 ounces
a year.
Reference to the fall in silver prices appeared in these
columns a week ago, page 3804.
Mexico Will Pay in Silver to Encourage Use of Coin.
Strengthens Hand of Allies.
The following is from the "United States Daily" of Dec. 19:
This would leave but 460,000,000 marks to be covered by long and short
says,
Dietrich
Herr
as
The
that,
Mexican Congress has conferred special powers on the chiefexecutive
operation
an
1930,
of
half
second
the
in
credits
to take necessary steps to improve the position of exchange and silver curwould normally follow automatically.
Germany rency in Mexico, according to advices received in the Department of ComWhen the finance reform program is executed, he declares, that
credits, to merce from Commerical Attache George Wythe, Mexico City. An effort
will be able to continue, through her export surplus plus foreign
obviously is to be made to increase the use ofsilver coins;for example,all high officials
transfer reparations payments without friction. His argument
its in- of the Mexican government,from the President down, will be paid in silver.
was intended to strengthen the hand of the Government against
ternal opponents who are hostile to finance reform.
arguIt is equally obvious, however, that it was overlooked that the same
who are Mexican Silver Rebounds—Loan Negotiations With
ment strengthens oven more the hand of Germany's creditors
work.
confident that with good-will Germany could make the Young Plan
National City Show Progress.
the
The tardy realization of this aspect of Herr Dietrich's statement and
one
with
debate
the
reparations
have
enriched
it
repair
to
The
following from Mexico City Dec. 18 (copyright) is
frantic attempt
of its most significant and sensational incidents.
from the New York "Herald Tribune" of Dec. 19:
lowest mark
Lively buying of Mexican silver currency, which reached its
in
21% discount against the gold peso on Tuesday. began this afternoon
Dr. Solmssen Warns Germany Against Debt Repudia- of
the wake of a report that an improved exchange situation is to be expected,
of
Head
New
Not
Save,
Borrow,
Must
ch
Governtion—Rei
with loan negotiations between the National City Bank and the
That the
ment reliably stated to have reached "the satisfactory stage."
German Bankers' Association Says.
than
less
not
of
credit
a
Mexico
has offered to extend to
Germany was warned on Dec. 16 by the new President National City
the Bank
in order to bolster the exchange, which is controlled by
$5,000,000
Solmssen,
Georg
Dr.
n,
of the German Bankers Associatio
of Mexico, was confirmed yesterday.
after
A favorable reaction in financial and banking circles was noted this
against any thought of economic recovery through denial
of 15% against the gold peso, showing a
discount
noon
Berlin
a
as
at
closed
silver
advices
from
Press
Associated
of national debts.
Tribune" further report; marked recovery.
published in the New York "Herald
people
Dr. Solmssen, speaking at his inauguration, declared the German
the last decade was
were beginning to understand that their policy during
all wrong.
borrowing and now we
"Instead of saving," he said, "we have been
cure our financial ills simply
find plenty of quacks who imagine they can
Let no one believe
pen.
a
of
by canceling our indebtedness by a stroke
liabilities."
we can rehabilitate outselves by repudiating our
Germany was largely the
Dr. Solmssen argued that unemployment in
said an attempt to make
result of State interference with business, and
in every respect.
the State the carrier of public economy had failed
their support to the
He said the bankers of Germany had pledged
banking interests would
Government, and indicated that henceforth the
take a more active part in politics.
Plea for Debt Moratorium—But American Representative at International Chamber
Finds Reich Facing Difficult Problems.
A dispatch as follows from Washington Dec. 13 is taken
from the New York "Times":
Doubts German
to request a
Although there is no intention on the part of Germany are that the
indications
postponement of reparation annuities, present
This
winter.
the
reparation problem will become increasingly acute during representative at
Opinion was expressed by H. C. MacLean, American
Commerce, in
the Paris headquarters of the International Chamber of
following
an extensive report on German conditions made public here to-day
a trip through that country.
that repa.‘One leading German financial expert," he said. "estimates
Germany 18
rittion payments can be continued only if unemployment in
we
From the New York "Sun" of last night (Dec. 19)
take the following:
Mexican Government and the
Negotiations are in progress between the
of a credit by the
National City Bank of this city looking to the extension
here no definite
hank to Mexico, it was learned to-day. So far as known
that an arrangement
agreement has been reached as yet, but it is expected
Mexico City is
from
will be effected. The amount named in advices
be to bolster Mexican
"$5,000,000 up." The purpose of the credit will
silver currency.
cents, has been
The Mexican peso, or silver dollar, par of which is 50
Mexican capital.
under fire of sharpshooters in foreign exchange in the
have been selling
Taking advantage of the weakness of silver metal, they
result that the peso
Mexican exchange persistently for some time, with the
in
in terms of silver has depreciated seriously. . . . The recovery
of Mexican
Mexican silver currency followed a statement of the situation
Mexican
silver currency before the Mexican Senate by Montes de Oca,
being exMinister of Finance, with an announcement that a credit was
tended by American bankers.
money
Short covering ofsales ofsilver currency ensued in the Mexico City
market.
Colombian Budget Passes—House Approves the
Measure as Adopted by Senate.
According to a Bogota (Colombia) cablegram, Dec. 13,
the Rouse of Representatives has approved the Senate
budget totaling $51,158,000, which is about $11,000,000 less
than the estimated revenues under the 1931 executive budget
DEC. 20 1930.]
'FINANCIAL
CHRONICLE
and nearly $3,000,000 under the estimated expenditures in
the executive budget. The cablegram further stated:
To the Finance Ministry is allotted $4,500,000 more than in
1930, an
increase of 40%, and the Education Department gets nearly $1,000,000.
The Departments of War and Posts and Telegraphs each are cut more
than
$500,000, and the Department of Public Works is reduced $250,000.
Excepting Finance, the Education Department receives the largest
increase, in conformity with President Olaya's promise to reduce illiteracy
by additional provisions for primary education.
Argentine Conference Agrees on Debt Payments—Sets
up Installment Plan for Provinces.
From the New York "Times" we quote the following from
Buenos Aires, Dec. 12:
A conference of Federal commissioners representing the Provisional
Government in 12 provinces has reached an agreement under which all
provinces
will pay their debts in monthly installments, and they will
pay interest
on unpaid balances at the rate of 7% annually. This agreement
applies
to sums due to foreign as well as national creditors.
The plan has worked successfully in Mendoza and San Juan provinces,
where its establishment has caused the withdrawal of many lawsuits which
had been instituted.
3969
"By the beginning of the present decade the incessant interchange of
population between farms and cities had begun to Indicate a continuous
trend of large proportions away from the farms, as is well known, although
at that time no one could foresee its ultimate volume or duration.
"According to the estimates by the Bureau of Agricultural Economics of
the United States Department of Agriculture, the net movement toward the
cities in 1922 amounted to no less than 1,120.000 persons. For 1923 there
was no estimate. In 1924 the number was 679,000; in 1925, 834,0004 in
1926, 1,020,000; in 1927. 604,000; in 1928, 576,000, and in 1929. 619.000.
So for the seven-year survey during the eight-year period there is shown
a net total of 5,452,000 persons who forsook agriculture in favor of other
pursuits in the towns and cities.
Question on Crop Financing.
"Allowing for unavoidable errors and for the usual recurring annual drift
in seedtime and harvest, these figures must still remain impressive as they
are natural under the circumstances.
"How many of these were persons 111.-suited in the beginning to a life of
agriculture will not be known, but there were many such. How many
were real farmers out of luck is equally obscure, but there occasionally
appear signs that some of these latter may be going back to their former
occupation.
Reason and faith together say that the condition will be overcome and a
stable level of prosperity again reached. Farm investments as a whole,
and always subject to sporadic exceptions, are as stable as agriculture itself.
Both may have their slow periods, epochs of reconstruction as the world
changes; but underneath is the unceasing demand for the means of life."
Peru Cuts Budget—Reduction Affects Salaries of
Marconi Concession.
Associated Press advices from Lima, Peru, Dec. 11, printed Chairman Legge of Federal Farm Board Before American Acceptance Council Denies that Board's
In the New York "Evening Post," said:
Efforts in Behalf of Agriculture Constitutes "GovCancellation of budget items totaling approximately $70,000 a
year, paid
to the Marconi Wireless Telegraph Co. for salaries to
ernment in Business"—Discusses Financing by
foreign employees,
was decreed to-day by Sanchez Cerro, Provisional
President of Peru.
Board.
Under terms of this decree payments on this account from the
GovernAlluding to the charge that the measures in behalf of
ments to the company, which holds a concession for
internal communications, must pay these expenses.
the farmer instituted by the Federal Farm Board are "being
aided and abetted by the loaning of taxpayers' money,"
Funds Available to Meet Feb. 1 1931 Interest and Sink- Alexander Legge, Chairman of the Federal Farm Board,
answered this by saying: "Well, what of it? Is there
ing Fund on Province of Buenos Aires Bonds.
anything
new in the fact that taxpayers' money is being
First of Boston Corporation, paying agent for the Province
of Buenos Aires, Argentine,6%% external sinking fund gold used in many other ways, in many cases even more disasbonds due August 1, 1961, announces the receipt of funds trously to the taxpayer? Probably every railroad operating
from the Province of Buenos Aires for the semi-annual pay- out of New York City to-day," he continued, "is being taxed,
and taxed heavily, to help pay for the building of concrete
ment of interest and sinking fund due February 1, 1931.
highways, which, when built, immediately become a competitor of these railroad* for both freight and passengers."
Revenues of Department of Cundinamarca
for Fiscal Mr. Legge spoke thus before the annual dinner of the AmerYear Ended June 30 1930.
ican Acceptance Council, in New York, on Nov. 17, and he
Ordinary revenues of the Department of Cundinmarca for
made the further remark that "some of you go on to say
the fiscal year ended June 30, 1930, amounted to 10,184,835
what the Farm Board is doing to help agriculture is 'GovPesos, or $9,912,890 at par of exelhange, compared with
8,483,- ernment in business.' No statement," he said, "could be
844 Pesos ($8,257,325) for the preceding fiscal year, accord- farther
from the truth. In the operation of the Agricultural
ing to figures received from the Department by J. & W. Selig- Marketing
Act the Government doesn't buy or sell anything.
man & Co., fiscal agents for the Department's 6%% sinking Each and every co-operative
organization to which assistfund gold bonds due 1959. The revenues pledged as security ance is being given is owned
and controlled wholly by the
for the bonds amounted to 4,737,829 Pesos, or $4,611,329
at producers themselves—in the language of the law itself,
par of exchange, after deducting municipal participations, 'producer-owned and producer-controlled.'"
Turning to
partly estimated. Service charges of $900,200 on the Bonds the financing of these national
marketing agencies, Mr.
were thus covered more than five times in the fiscal year Legge said: "It is true that this treatment
of the subject
1930.
which some people criticize as being too ambitious has
Involved a degree of financing that perhaps some of you
W. L. Crocker of John Hancock Mutual Life Insurance
people wouldn't approve; although we are expressly directed
Company Finds Farm Loans Afford Stable Field
Congress to provide funds for handling the commodity
for Life Companies—Says Renewals Are Freely by
more liberal basis than can be obtained from private
a
on
Being Made by Insurance Concerns—$2,473,000,000
financial sources, such operations are clearly within the
Total of Aggregate Account.
spirit and meaning of the Act itself. However, this situaFarm investments as a whole are as stable as the field of
not as serious as it might at first appear. In the
agriculture itself, and for life insurance companies present tion is
an important field for the placing of assets, according to first instance even a revolving fund of half a billion dollars
cannot at best go very far in financing the marketing of
Walton L. Crocker, President of the John Hancock Mutual
Life Insurance Co. of Boston, in an address before the con- the volume of agricultural produce which will average in
vention on Dec. 12 of the Association of Life Insurance excess of $12,000,000,000 annually, so the co-operatives must
Presidents. At present, he said, renewals on farm loans ars depend upon private financing for by far the larger part
being made freely. These advices are taken from the Dec. 13 of their operations." Referring to the question of corporaissue of the New York "Journal of Commerce" which con- tion farming, "which some people are putting forward as
the ultimate solution of the [agricultural] problem," Mr.
tinued:
The aggregate policy loan account, he said, should total
Legge said, "I sincerely hope that this will not prove neces$2,473,000,000
on Dec. 31, equaling 14.3% of the total admitted assets. In 1929, he
said, sary or essential in establishing agriculture on a sound
the account grew over $348,000.000, while the increase for the
current year
will not be far above $334,000.000.
basis." He described it as tending "to destroy one of the
bulwarks of American national life, that is, the home life
Part for Agricultural Expansion.
"The impressive aggregate of the funds loaned to the farmers shows
how on the farm, where 'Isms' have never found a foothold."
much the life insurance companies have had to do with the great
of agriculture in this country. If in the process the companiesexpansion We give herewith Mr. Legge's address in full:
have unconsciously entered a partnership in overstimulation of the farm
movement
It has been because it is not always easy to foresee the trend ofsuch
movements and because of the natural reluctance to stop the gigantic
supply of
money unless for very urgent reasons. The principle that a safe
investment
Is predicated only on a normal return of profit based upon a general
price level tor comntodities is easier to put into words than to normal
judge in
practice at the moment of action, before the reality becomes clear, for
that
principle, as well as the real meaning of the word 'normal,' is more
readily
seen in retrospect. Moreover, by the end of 1920, or shortly
thereafter,
much of the lending which now figures in the farms owned had
already
been done.
I am not going to say much to you acceptance bankers about your own
business-1 am willing to admit at the outset that you all know
moil
about it than I do—beyond the mere statement that we believe in it as a
very valuable addition to the financial system of the country, a form of
clearing house as between the borrower who needs short-time funds and
those who have funds to invest, particularly the constantly increasing
number of corporations and firms who at some period of the year have a
surplus that can be profitably employed through this method. Perhaps
you might justly claim that you act as a stabilizing influence In the
money market. Certainly there is no excuse for the corporation or
private
merchant seeking to keep surplus capital busy through some form
of
3970
FINANCIAL CHRONICLE
speculation while the acceptance market furnishes a safe outlet through
which the money can be profitably employed.
Many of the co-operative organizations with which the Farm Board is
working use this acceptance market as part of their financing system,
and we hope that as time goes on they will use it to a much greater extent.
There is one feature, however, in this connection on which I would ask
your careful consideration. The turnover in agriculture is always slow.
The extent of the use of the acceptance market by the co-operatives would
in my judgment be considerably expanded by the development of a broader
market for acceptances running for a longer period.
In discussions of the agricultural problem among you people in the
financial world one gets the impression that many of you regard it as a
new kind of disease, and it has been rather baffling to those who have
tried to diagnose the ailment. One doesn't have to dig very deep into
the records of the past to find that the problem has been with us for a
long time. In the early days of the last century we find this subject
referred to rather frequently in the discussions in Congress which led up
to the passage in 1816 of the first tariff bill that is referred to as a
protective tariff, which taiff was on a basis of approximately 20% ad
valorem. At this time the representatives of the agricultural districts
joined with others from the manufacturing towns in an effort to make
the nation independent of foreign sources of supply of manufactured
products, but when a few years later the agitation became strong for increasing those protective tariffs considerable objection was developed on the
part of the districts that were purely agricultural. However, the manufacturing interests prevailed and in 1828 the protective duty was increased
to an average of eround 50%.
In this connection reference is made by one of the prominent writers on
the subject to a letter written by Lawrence Abbot, a protninent industrialist
this
of the time, to Daniel Webster, in which the prediction was made that
increase of protective tariff would leave the agricultural South and West
in debt to New England for the next hundred years. The problem seems
to have been up for discussion in sessions of Congress following until 1846,
at which time a substantial reduction in duties was made. These continued until about the outbreak of the Civil War, at which time they
were reinstated, and, with variations up and down with which you are all
familiar, have continued in force to date.
In the original discussions of this protective tariff they apparently
believed that this special privilege, paternalism or whatever you may
choose to call it, offered the manufacturing interests would be of a temporary nature to enable those infant industries to gain a foothold, and it
was hoped they would soon become strong enough to hold their own
rates
without it. Such did not prove to be the case, and as a rule the
have averaged higher rather than lower. As someone has put it, the
infants
consumers of the country were taxed to provide milk for these
until they grew up, but there is no instance on record in which any of
them have reached the stage where they would be considered weaned.
Nor is the problem of disparity between agriculture and other industries
limited to this country. Chinese history indicates that it was a subject
of governmental discussion in that empire many centuries ago. It has a
prominent place to-day in the political and legislative activities of
pretty nearly every nation of the world. One is forced to the conclusion
that there must be some fundamental cause since the problem is so persistent and is found to exist nearly everywhere regardless of geographical
location, race, or creed. The reason why this disparity should exist and
persist must be determined before a satisfactory plan could be made looking
toward its permanent adjustment.
As we see it, the basic difference as between agricultural producers and
those engaged in industry is lack of organization. From the time that
the first partnerships were formed in business a certain measure of collective thinking and action was applied to the problems of those partnerships and as those combinations of mind and capital grew into corporations and the corporations continued to grow in size this difference in
the approach to the problems of the several classes constantly increased.
The vast corporations of to-day represent collective thinking and collective acting to a greater extent than ever before. One man's judgment
is not depended upon to develop the policy or program to be followed,
nor is one man's pocketbook depended on to furnish the capital required.
The policies of corporations are determined upon the best judgment of a
group of men, trained to study the particular problems with which they
have to deal. Because of the larger size of their operations they are in
better position to obtain the fullest possible information as to the problems
they have to meet. Accounting systems have been developed to a point
where they know pretty much from day to day the extent of progress
they are making.
When we compare all of this with the actions of the farmer who through
all these centuries has been and is our greatest individualist—here in this
country there are six and one-half million farm factories each producing
practically independent of each and every other one—it is not difficult
world
to see why they have lagged behind in meeting the rapidly changing
[VOL. 131.
product, and his whoie effort is directed to getting his stock back to a
normal position.
This is an essential requisite which in the past has been practically
ignored by the agricultural producer, who in many instances has for a
period of years gone on increasing this inventory or carryover. All records
available on this subject indicate the farmer has never obtained his best
return, not only on a unit basis, but the aggregate return in periods of
serious overproduction.
Agricultural production naturally divides itself into two classifications
which might be termed the perishable and non-perishable products, and,
strange to say, the most serious difficulty has occurred on those products
which might be classed as non-perishable—cotton, which can be stored and
carried indefinitely without any serious deterioration, and wheat and
other cereals, which can be treated the same way for at least a considerable
period of time. The perishable products, while subject to perhaps even
greater fluctuations, have at least the advantage of every season liquidating
their own problem, and because of the acute distress to the producer in
periods of serious price collapse, some adjustment has usually followed.
As an illustration of what happens to the perishable products let tut
refer briefly to the figures on potatoes. Statistical records on this rather
basic commodity indicate the country normally consumes around four
hundred million bushels of potatoes in a 12-month period. A very slight
reduction in the crop below that level always results in their being sold at
a satisfactory price, and it doesn't take very much of a reduction below that
level to result in a relatively high level of prices throughout the season.
On the other hand, a comparatively small percentage over and above the
normal consuming line results in a low price for the entire crop, and
even if they do not have a very large surplus the resulting prices are so
low that much of the yield is left unharvested.
While not so rigid in its application, a similar variation in return applies
on staple commodities, as for illustration cotton, which is perhaps the
one agricultural product that can be carried indefinitely without depreciation in quality. We find that in 1923 the cotton South produced 10,200,000
bales of cotton. The return to the grower was around $1,600,000,000, a
result so profitable it probably had a marked influence in increasing production until three years later we find a crop of 18,000,000 bales, which
sold for slightly less than $1,000,000,000 to the producer. In other
words, the unfortunate cotton grower had all the extra labor and expense
of producing 75% more cotton than in 1923 and he paid over $600,000,000
for the privilege of doing it.
Similar illustrations could be given on many commodities. One illustration is the present situation in livestock. For the last four or five years
meat production generally has been on a domestic consuming basis at price
levels substantially higher than prices prevailing in the rest of the world.
You have probably noticed that of all the agricultural commodities the
one that has stood the shock of the past year's depression the best has
been hogs, the prices for which have averaged through 1930 very close
to the price level of the preceding year. As compared to that, the price
of feeder lambs has suffered severely, and the answer can be easily found
in the production records of each. Hog production has been at or slightly
under the average consumption of pork products in the country, while
the growing of sheep has increased far beyond any previous records in
the history of the nation. I recall that last spring we were visited by a
delegation of sheep feeders from the Western States who presented a
situation of real distress because of the sharp decline in price levels at
which time many of the oldest feeders in the business were literally wiped
out. In many cases savings of years disappeared in the operations of a
single feeding season.
There wasn't anything we could do to assist them. On a staple commodity that can be stored or carried it may be possible to ease the shock
and spread out the decline over a longer period or carry such surplus until
necessary adjustments can be made in their production, but when lambs
are fat and ready for market you cannot bale them like cotton or bin
them like wheat. They simply have to be marketed for whatever they
will bring. In going into this problem, however, we found that as far
back as 1927 the Department of Agriculture had issued a warning to sheep
growers calling attention to the fact that the rate of production was
increasing far more rapidly than the increasing consumption on that
commodity. This warning was repeated again in 1928 and again in
1929, but apparently was entirely ignored by the producers, who did
not realize what they were doing themselves until they were called upon
to face the results of their own action.
Individual farmers cannot themselves obtain complete or accurate information as to the market outlook for what they are producing. This their
Government can do for them, and it is being done on a constantly improving basis from year to year. The application of this information, however,
is largely an educational process, a difficult one to handle—the bringing
home of this information to the widely scattered producers who should
plan their production based on the supply and demand outlook.
All of which brings us to the fundamental principle involved in the
Agricultural Marketing Act. Congress directed the Farm Board to devote
conditions.
is its energies to the better organization of farmers for co-operative and
While I have tried to point out to you that the problem is old, it
recent collective action in dealing with their economic problems. The stated
true that in this country at least it has become far more acute in
still purpose of the law is to put agriculture "on a basis" of economic equality
years, particularly since the World War, the results of which are
principal with other industries. Rather wide discretion is given the Board as to
being felt in pretty much every line of industry. One of the
tremendous how this may be brought about, but among the few specific instructions
results of the conflict was the tremendous load of debt, the
in wage laid down in the Act is one to study market conditions affecting agriincrease in the rate of taxation, and a sharp adjustment upward
generally and so far as possible to keep the agricultural
rates and prices generally, changing conditions which the organized indus- cultural products
to the market outlook on the various products he is
tries were able to meet far more successfully than the individual farmer. producer advised as
changing con- producing—to quote the exact language of the bill, "to investigate conthe
meet
to
rates
wage
increased
manufacturers
When the
cost, as ditions of overproduction of agricultural commodities and advise to the
ditions this increase was taken up as part of their manufacturing
prevention of such overproduction."
were the increase in taxes and increased costs generally.
industrial
It is our judgment that only through co-operative organizations can the
With highly developed cost accounting systems the producer in
produce the essential facts be brought to the attention of farmers, and through their
lines knows from day to day just what it is costing him to
manu- own organizations can such adjustments in production as are necessary be
goods and price lists are adjusted accordingly. The producer of
the made effective. On this subject we have a sufficient record of accomfactured products has at least a measurable voice in determining
whether plishment on certain commodities to lend encouragement to the belief that
price for which it shall be sold—at least, he knows from day to day
obtained.
he is selling it at a profit or a loss, and to survive he must take prompt when properly organized satisfactory results can be
out
One of the oldest of our organizations is that of the citrus fruit growers
action to adjust his operation to a basis where he can at least keep
of California. After many years of stress and records of facing various
of red ink.
do, means to relieve it, these growers finally got organized on a sound basis,
All of which the farmer, totally unorganized, has been unable to
profitable level.
and this brings us to perhaps what is the fundamental difficulty in the since which time their industry has been on a reasonably
carried on Instead of glutting any particular market with an over-supply of their
agricultural situation. The farmer's production has been
themselves to product, as will nearly always happen when the commodity is handled
blindly, hoping that in some way conditions would adjust
by individual shippers who of necessity must take the product that is
where he would be able to obtain a better return for the effort expended.
a offered to them and dispose of it as best they can—ship more or less
When the manufacturer, jobber or retailer closes the season with
on which indiscriminately because no shipper knows where the other shippers are
heavy carryover or inventory this is one of the basic factors
stock sending their product on that particular day, a program has been worked
future production or purchase is made. Obviously, if he has enough
not only by
on hand to supply his trade for a considerable period of time it is foolish out whereby the consuming demand of the country is known
people know just how
for him to produce or purchase an additional quantity of the same years, but by months, weeks, and days. These
a
1
DEC. 20 1930.]
FINANCIAL CHRONICLE
many oranges or lemons the City of New York is in the habit of consuming
on any day and any month of the year, and the flow of the commodity to
market is regulated to see that that demand is properly, cared for. When
surpluses occur they are disposed of through by-product processes which
have been developed by the growers themselves on a basis where it makes
no difference to the grower whether his product is sold on your market
as fresh fruit or consumed in the by-products plant at one-fourth
the
price. The return to the individual grower is the average received
for
the product for the season.
An amusing incident in this connection occured soon after the
Farm
Board was established. I think our first applicant for help was the
Florida
citrus people. They approached the subject with a good deal of
misgiving
because the member of the Board with whom they had to deal
was a
Californian, and perhaps some of you may know that there
has been
and is a certain amount of rivalry between these two
producing areas.
Naturally, the Florida people were a little apprehensive to
have their
affairs in the hands of the member of the Board who for years
had been
at the head of the California citrus organization. What they
didn't know
was that the position of the California growers was that
of not asking
for any help for themselves. The latter were strongly
organized, had
ample capital for their operation, didn't want to borrow
money, but had
one request to make of us, and that was to try to help the
Florida producers organize to the end that they wouldn't constantly be
disturbing
the markets by gluts, as they are termed; that is, a heavy
oversupply of a
perishable product delivered to any consuming center.
The need of such action WU perfectly apparent, when it was
shown
that in Florida, with a much smaller quantity to ship
there were 132
shippers moving the crop to market, each of them acting
entirely independent of the other 131, while on the Pacific Coast
two co-operative
organizations were marketing 93% of the total crop.
Incidentally, substantial progress has been made on the Florida situation,
and it is estimated that at least 60% of this season's citrus
crop will be handled
co-operatively.
In speaking of the accomplishment of
the citrus growers, I do not
refer to the excessively high prices that
have prevailed on some of these
products in recent months. This was purely
These people have had experience enough to incidental to a short crop.
realize that excessively high
prices would in the end prove detrimental to
their interest, both serving
to reduce consumption and increase production.
My reference is made to
the general marketing conditions that have
prevailed for quite a number
of years past.
This illustration naturally brings me to the problem
of improving
marketing organizations, although it is our judgment that
improved marketing and better regulation of quality and quantity of the
product go hand
In hand. Nor does it follow that success in building
up co-operative
marketing organizations will result in an increased cost to
the consumer.
In the dairy industry one could cite numerous examples
all around the
country where through better organization the producer of
the product is
getting substantially higher prices and yet the consumer is
receiving it at
lower cost than prevails In other sections where
dairymen are not so
organized. Very substantial progress has been made
in
the milk supply of the City of New York through the connection with
operations of the
Dairymen's League, and quite substantial economies
have been effected
In distribution, yet some of you might be surprised to
learn that even
to-day conditions are such that local distributing
outlets are practically
bought and sold in competition by those striving for a
larger outlet for
the commodity. Half a dozen or more milk wagons still
track over the
same streets and alleys furnishing small quantities of
their product to
individual consumers at a frightful increase in cost over
what would be
Involved if one of these wagons would furnish the
consumers' needa even
In a single block.
The excessive cost of retail distribution is one of the
biggest problems
confronting the nation to-day, which incidentally applies
to a lot of
products other than agricultural products, but the cry goes up
farmer organizes to merchandise his own produce that he is when the
with somebody else's business. Possibly true. However, have interfering
any of you
bankers ever asked the farmer for permission if you want
to buy or
operate a farm either for pleasure or profit?
What reasonable objection, then, can be offered to the agricultural
producer carrying through the marketing of the product of his own
toil?
But you say this is being aided and abetted by the loaning of
taxpayena'
money. Well, what of it? Is there anything new in the fact
that taxpayers' money is being used in many other ways, in many
cases even
more disastrously to the taxpayer?
Probably every railroad operating out of New York City to
-day is being
taxed, and taxed heavily, to help pay for the building of
concrete highways which, when built, immediately become a competitor of these
railroads
for both freight and passengers.
A peculiar feature of this hue and cry is that those who
holler the
loudest are far from being heavy taxpayers, and in justice to the
heavy
taxpayers of the nation it must be said that they have offered
little
objection to the efforts being made to improve the agricultural
situation.
One might go further and accuse many of these fellows who are
making
the loudest noise of being tax-dodgers, at least so far as State
and
taxes are concerned, since carrying on a business of trading in a lecal
commodity on a percentage basis or speculating in it doesn't require
fixed
assets or tangible property. It can hardly be said that those who
make
livelihood without use of tangible property are carrying a fair load a
of
taxation under the tax laws and regulations of to-day.
Some of you go on to say what the Farm Board is doing to help agri.
culture is "Government in business." No statement could be farther
from
the truth. In the operation of the Agricultural Marketing Act
the Government doesn't buy or sell anything. Each and every co-operative
organization to which assistance is being given is owned and controlled
wholly
by the producers themselves—in the language of the law itself,
"producerowned and producer-controlled." It ia true that we do have to
some measure of restraint in cases where the amount of the exercise
loan is
excessive as compared to the actual capital invested by the
who own it. This is not always true. There is a constantly producers
increasing
number of these co-operatives that are just as good credit risks to
-day as
any of the industrialists.
As we found the situation with reference to co-operative
organization
In many commodities there had for years been quite a number of
so-called
co-operative set-ups. As an illustration, in grain there were
something over
4,000 country elevators listed as co-operatively owned. In most
cases, however, these were purely local institutions not in position to exercise
any
Influence either in the regulation of the flow of the commodity to
market
or in the price obtained for it. Necessarily, the only thing such a
local
set-up could do was that it might save for the producer that margin
of
profit which the local dealer had obtained through handling it.
3971_
After a careful study of the situation we recommended that co-operatives
handling the different commodities, such as grain, cotton, and livestock,
band together in a central marketing agency to the end that they might
carry their products to the processor or consumer. In most of the agricultural commodities there is some form of processing, such as the packing
house for the slaughtering and preparing of meat for market, the mill
for grinding the grain, and so on.
Seven of these national marketing organizations, including grain, cotton,
wool and mohair, livestock, beans, pecans, and sugar beets, have now
been established by the co-operatives and in several other commodities,
particularly where the distribution is not a nation-wide proposition, regional
groups have been organized to the end that they take care of the commodity for that particular region or district.
To return for a moment to the financing of these national marketing
agencies, it is true that this treatment of the subject which some people
criticize as being too ambitious hae involved a degree of financing that
perhaps some ef you bankers wouldn't approve, although as we are
expressly directed by Congress to provide funds for handling the commodity on a more liberal basis than can be obtained from private financial
sources, such operations are clearly within the spirit and meaning of the
Act itself. However, this situation is not as serious as it might at first
appear. In the first instance, even a revolving fund of half a billion
dollars cannot at best go very far in financing the marketing of the
volume of agricultural produce which will average in excess of $12,000,000,000 annually, so the co-operatives must depend upon private financing
for by far the larger part of their operations.
Again this financing on the part of the Farm Board should not be a
permanent proposition. Each and every one of these organizations is set
up on a basis where a small percentage of the turnover provides a reserve
for future working capital which should in time make them independent
of any Government aid. Further, I need not remind you bankers that
when you have to loan your customer in amounts that become close to
the danger line as to his financial solvency you must of necessity exercise
a considerable degree of supervision as to what the borrower is doing with
the funds, a supervision which, however necessary it may be, the borrower
nearly always resents.
Fdr many years the corporation which I formerly represented WRS a Very
heavy borrower, and I have spent some very unpleasant moments on the
prayer rug of you distributors of finance and recall distinctly what a
satisfaction it was when the corporation reached the point where you
wanted our business worse than we wanted your money, and where we
could look any of you in the eye and tell you just where to go. The
farmer is quite as pronounced in that feeling as any commercial borrower
of your acquaintance. He wants the aid and assistance we are giving him,
but chafes under the restrictions it is necessary to impose upon him, and
is going to work away from that position just as rapidly as he can.
Another angle of the agricultural problem on which you have heard a
lot of discussion of late is the subject of corporation farming, which some
people are putting forward as the ultimate solution of the problem. I
sincerely hope that this will not prove necessary or essential in establishing
agriculture on a sound basis. It tends to destroy one of the bulwarks of
American national life, that is the home life on the farm, where "isms"
have never found a foothold. So far as our study of the subject goes we
believe that this mass production as typified in the corporation farm is
not essential.
Some months ago I attended a conference of the State college people
of all the States in the winter wheat growing belt, in which the subject
of cost of production was given careful consideration. Each of the
colleges had for years been carrying on a series of tests, keeping books
on farms of various size in various parts of the State, and presented the
astounding figures of costs of raising a bushel of wheat, compiled by the
same people within the same State ranging all the way from 40c. to $1.67.
However, it is quite true that the farmer has not been able to meet the
rapidly changing conditions brought about by what we commonly call this
mechanical age as effectively as most manufacturers. Nearly every factory
in this country has been pretty thoroughly re-equipped since the World War.
Factory equipment which 15 years ago represented the latest development in its line, the manufacturer cannot afford to use to-day. Much the
same transition has taken place in equipment necessary for the most
economical farming, and it does tend to require a somewhat larger unit
of operation. Even when the farmers band together and collectively buy
machinery which individually they cannot afford to own, the 'smallest
fields do not lend themselves to the use of it. These unit account figures
were such as I have frequently looked at in factory operation. Constant
improvement with the increased volume and the use of better mechanical
appliances up until you reach a point of efficient production, after which
the improvement is slow, and hard to obtain, for the simple reason that
you are then duplicating units of production that are already efficient,
and this seemed to be true of the wheat grower. The fellow using a small
patch was rather hopelessly out of the picture. The grower who farms
a section of land and had say four hundred acres in small grain was able
to provide the best equipment available, and his costs were so close to
that of the mass production fellow with the corporation farm that it doesn't
seem probable that the operator will ever put him out of business.
However, the problem of adjusting quarter section farmers to section
farms, taking that as the unit in the wheat raising territory, is one that
will require a long time to work out, and, incidentally, one on which
your bankers can be of real assistance. In territories where that kind of a
crop is produced the individual operator of the email farm may be hopelessly up against it while by putting three or four of them together the
operator would become a good afinncial risk.
Again, you have heard a great deal about solution of the crop surplus
problem along the line of some mysterious process where excess production
could be done up in a package and disposed of somewhere else, always a
little vague as to where that somewhere else might be. We cannot see
any hope of solution along this line. Practically all the importing countries, like ourselves, have farm populations of their own to protect, and
they are doing the best they can to protect them. The recent action of
the Russian Government in heavy dumping of wheat abroad has brought
about reprisal of some kind in at least three-fourths of the countries that
could consume their products. Perhaps this is best illustrated in the
case of Germany, which first raised the tariff on wheat from 97e, a
bushel to $1.20, and a few weeks later again raised it to $1.62 a bushel.
Probably Germany wouldn't admit that this was a direct answer to the
Russian dumping, but one doesn't have to have any of the skyscrapers
around here fall on him to reach a reasonable conclusion as to the cause
and effect of some of these moves.
In conclusion, perhaps the most difficult part of the agricultural problem
is the general belief on the part of the fanner, in which he has
been
encouraged by so many soap box orators and some of these in the
legislative
3972
FINANCIAL CHRONICLE
[VoL. 181.
on position to take advantage of any opportunity that may arise for conbodies that represent the country, that without any action whatever
position in the markets of the United Kingdom and Ireland,
his part the Government could find some way to make him prosperous and solidating its
his as well as in Europe and elsewhere.
happy. Anything that you people can do to assist in disabusing
"To that end it has been considered advisable to withdraw our direct
mind of this illusion will be most helpful.
s from overseas. This should demonstrate beyond the possiThe farmer's position is not vastly different from that of any other representative
what he bility of doubt the truth, or otherwise, of the statement frequently made
industry. Attention must be paid to quality and quantity of
if his that the maintenance of direct representation overseas has militated against
produces and the manner in which it is placed on the market
in the sale of Canadian wheat.
business is going to work to a sound basis. That you are all interested
"It is ray firm conviction that this change in policy will have immediate
this being accomplished is a fact too evident to require much discussion.
is and favorable effects in strengthening the demand for Canadian wheat
In these days of closely interrelated business every man's business
was overseas, and that it will create a friendly feeling where there have been
directly influenced by what is happening to the other fellow than
doubts and ill-feeling concerning our selling policies in the past, and that
true in the days when some of us were younger. As an illustration,
I we shall be able to demonstrate beyond the possibility of doubt that our
during the discussion of the tariff bill at the last session of Congress
latest producers desire only fair and equitable treatment in the sale of their
happened to listen in on a discussion of duties on lumber. The
in products.
figures available showed the startling fact that consumption of lumber
"This should make it easier for the pools to take advantage of the
the United States had dropped from the figure of 55 billion board feet
in Great Britain and on the Continent that agricultural
to 34 billion, all of which most of you would attribute to the replacement growing opinion
was living standards must be protected against the products of forced labor
of lumber by steel and concrete, and so on. The startling fact
approxi- and ruthless and reckless competition. The management have complete
developed that of that decrease of 21 billion board feet annually,
buying. confidence that the pools, by making adjustments to meet the existing
mately 11 billion of it was represented by reduced agricultural
will be able to render to their members a greater service than
A little later in discussing the general business situation with an official conditions,
the in the past, and that whatever changes will occur it is certain that the
of one of the trunk line railroads, the statement was made that
no farmers in the West will co-operate for their common good, and will meet
heaviest reduction in freight car loading was in lumber. As I am
won't the common difficulties with the same loyalty that they have always shown
doubt talking to a lot of stockholders in that particular railroad you
power in the past.
have any trouble figuring out the relation of the reduced buying
"I do not hesitate in taking this action, as I am confident it is the
of the farmer to your own pocketbook.
great organization of farmers to take such action as will
Many such instances could be cited, but I do not believe it necessary duty of this
from the minds of the grain and milling trades abroad,
to present arguments to you people to show that you are vitally interested assist in removing
as well, from the public mind, a prejudice which has
in our efforts to improve the purchasing power of farmers. We solicit and in Canada
unwittingly become prevalent that the pool's policy was designed to combat
your earnest co-operation to that end.
the world and plough a lone furrow to the detriment of the consumer
abroad and to the grain and milling trade in general. There is no doubt
that this Sentiment prevails overseas.
"I have spent my life in dealing with the farmer in the West, and no
J. I. McFarland on New Policy of Canadian Pool in
person knows better than I do his sterling qualities and that all he wants
Withdrawing Its Representatives from Overseas.
is fair and equitable treatment; and I want the world to know that we
In a statement issued Dec. 9, John I. McFarland, newly are open to sell our wheat at a fair price as compared to that of other
ready and willing to use every estabappointed manager of the Canadian 0o-operative Wheat producing countries, and that we are
lished facility to that end and to transact business with whomsoever and
wheat
the
of
withdrawal
the
to
referred
Ltd.,
Producers',
wherever we can secure the best price and thus remove all prejudice, as I
pool's overseas representatives. As to this action it was am firmly convinced that such a policy is the only policy by which those
to the best advantage the best
stated in Winnipeg advices, Dec. 10, to the "Wall Street organizations can be successful and serve
our Western farmers.
of
interests
circles
milling
Journal," that grain exchange and Western
"Trying times are with us and ahead of us, but by unselfish co-operation
In Winnipeg greeted the closing of the pool's foreign agen- we shall pull through."
cies with enthusiasm. The paper quoted went on to say:
The new policy is not expected to cause any dumping of pool holdings;
in fact, the new management thinks it will have precisely the reserve effect
in world markets.
offering
Under the old policy with Pool agents at all world centers
was
wheat to millers a shade under the level of quotations, the trade
York,
always in a state of uncertainty. The largest Pool office, at New
is closed at once. London, second largest, and Paris as well as those at
other European centers will not be closed until January 1, although only
routine business will be transacted.
In the manifest of the new management no mention is made of disposing of the 2,000,000-bushel terminal elevator at Buffalo. It was as
much the Pool policy of acquiring great storage facilities in foreign
with
countries as of having their own depots and agents to deal directly
from
the foreign millers at world centres, which caused much criticism
the trade.
The
It is believed all foreign storage facilities will be abandoned.
Co.
Buffalo property belonged to the Saskatchewan Cooperative Elevator
and was taken over when that company was absorbed by the Pool.
On this exchange, as well as others throughout the world, the Pool
owns memberships and has kept its men on the floors for some years.
This feature of sales policy is also being abandoned.
Several lawyers have asserted the leases are not now binding in view
farmers'
of the changing process, which has made the original cooperative
pool merely another trading company.
In business and banking circles here the change is greeted as enthusiastically as in grain circles, as the first definite move toward getting
in tune with the buying world.
E. W. Beatty of Canadian Pacific Ry. Urges Formation
of Agricultural Credit Corporation Under Private
Ownership—Also Says Dominion Should Assist
Farmers—Aid on Part of Provinces in Behalf of
Wheat Pools.
"I feel that the present difficulties of the wheat farmers
of Western Canada must be given consideration as a problem of concern to the whole economiC life of Canada," said
E. W. Beatty, K.C., President of the Canadian Pacific Railway, in the course of an address at London, Ont., on Dec. O.
Mr. Beatty continued:
"The Dominion Government should not hesitate to intervene with an
offer of assistance, as a national duty.
"In recent years, assistance, as I have indicated, has been given in one
way or another for the removal of disabilities of manufacturing interests,
of the dairy and fruit farmers, of the East and British Columbia and of
has been
the maritime provinces. More recently, direct financial aid '
of
provided for unemployed workers. Special provisions for the farmers
the West, suffering from difficulties which they could not foresee or
avoid, should be regarded by other groups in the country as a simple act
of justice.
Position of Province.
"The Governments of the three prairie provinces, owing to their intimate
but
Mr. McFarland's statement follows:
knowledge of local conditions, are best adapted to provide relief,
loans to the
"At a time when Western agriculture, in common with that of the entire owing to their pledging of the credit as security for bank
the
If
other
wheat pool, they may need Federal assistance in the matter.
world, is confronted with formidable problems in marketing wheat and
that Dominion Government were to agree to assume a portion of the obligations
grains at prices that will permit producers to live, It has become clear
possible regarding the 1929 crop, and the provinces were to use this release of their
growing responsibility of selling Canadian grain to the best
experi- credit to permit them to assume the full burden of relief to their citizens,
advantage must be examined, as well as policies in the light of past
responsi- the aid of the Dominion Government would be given in a useful direction,
ence and of the market situation as it now actually exists. This
pecularily and the operation of relief measures by those best equipped for the task
bility rests upon all dealers in wheat and other grains, but is
pools. would be assured.
the duty of those in charge of the marketing policies of the Western
only
sacrifice, as
"These obligations should be assumed by the Dominion Government
These great institutions have been built up on the labor and
throughout the to an amount equivalent to actual relief expenditures by the provinces in
well as on the unswerving loyalty of the many farmers
West has aid of farmers. Since it is inevitable that some critics will assert that
prairie provinces. Their contribution to the economic life of the
part, in deep- this is special did to members of the wheat pool, it may be well to point
been substantial. The pools have played a part, and a great
fundamental out that the reverse is the case. The guarantee of the pool loans by
ening the faith of our people in agriculture, which is the most
that the pools the provinces might be so regarded, although even in that case the
of all our industries. Even their keenest critics will admit
that agriculture provinces were unquestionably moved by a desire to save a collapse of the
have done much to sustain the farmers in their belief
structure of wheat market that would hurt pool and non-pool farmers alike. The suggesshould be elevated and kept in the first place in the economic
is made
tion that the Dominion Government now assume these guarantees
Western Canada.
efforts to the relief of
be ready to adapt
to enable the provinces to direct their best
"The pools are living, growing institutions, and should
solely
world. That must surely all farmers, pool members or not."
themselves to changing conditions in a changing
men and women who built
have always been the belief of the thousands of
Mr. Beatty pointed out that his proposal for Government
their devoted
management
them and who have never faltered in giving the
present
the
with
successfully
was not part of any plan for inducing the Govdeal
assistance
support. If the pools, therefore, are to
themselves and to take
interfere with the normal course of wheat marto
ernment
agricultural crisis, Ithey must be ready to adapt
marketing problems that have
advantage of their past experience in the
keting. The assumption by the Government of a portion
arisen.
conference of the liability of the provinces should be a practical means
Recently there was held at London, England, an imperial
Commonwealth. One of
of enabling the prairie provinces to meet emergent conrepresentative of all the nations of the British
the market
the major matters discussed was the possibility of widening
the
to
ditions
among their citizens.
given
was
attention
Much
within the empire for empire products.
throughout the
The formation of an agriculture credit corporation, under
marketing of wheat in the United Kingdom and elsewhere
at
resumed
Empire, either as grain or flour. These discussions are to be
suggested by Mr. Beatty. The
definite and private ownership, was also
Ottawa during the coming year. It is hoped that something
to farmers who wished
livestock
provide
producers
would
of
corporation
benefit
concrete will be accomplished at that time for the
do
to
important
have the support of
is
it
should
meantime
to diversify their stocks. It
throughout the British dominions. In the
British
insurance cornall within our power to win the confidence and good-will of
companies,
loan
and
trust,
mortgage
banks.
possible
importers and millers, so that Canada may be in the strongest
DEC. 20 1930.)
FINANCIAL CHRONICLE
panies, and the railways, and, if thought advisable, the Dominion Government itself. The moneys would be repayable
on easy terms, risk would be small, and the administration
costs small through the voluntary nature of the undertaking. Mr. Beatty added:
"I would suggest that five million dollars be raised in this manner, and
that the project should at all times be treated as one of sound investment.
This method of aid would be specially valuable, since many Western farmers would find their domestic economic problems greatly simplified by the
addition of livestock to their farms, and since every head of livestock placed
on a Western farm aids in the market of surplus grains.
"The whole project should be directed, not only by warm sympathy for
a community of courageous pioneers threatened with distress, and by a
desire to provide just assistance to a section of the Dominion which does
not benefit as much and as directly as do some others from various policies
of the State, but by intelligent selfishness and full appreciation of the
fact that prosperity of East and West, of farmer and city, is wholly
and inextricably linked together. I believe that the country as a whole
Is prepared to come to the assistance of a great section suffering from
a
temporary but severe depression, from causes beyond control, not only
because it is just to do so, but as a Wise measure of national policy."
3973
The government hopes by these measures to increase the profits of
wheat farmers and to prevent combinations of buyers.
Grape Racket Toll—Fresno Newspaper Says Coast Growers
Paid $4,500,000 in Year.
The New York "Times" reported the following (Associated Press) from Fresno, Cal. Nov. 20:
The Morning Republican says the fresh grape industry in California
had paid about $4,500,000 tribute to gangsters and racketeers in Eastern
markets this year.
In Chicago receivers were compelled to pay $30 a car to the representatives of the racket before the door of any car of juice grapes could
be opened. Refusal to pay resulted in disappearance of truckmen or their
mistreatment, the paper said.
In New York, the article stated, the system was different. The racket
was controlled by truckmen who charged for loading and hauling about
$100 a car.
Grapemen estimated the reasonable value of the service at $40 a car,
leaving $60 paid as tribute.
Wrigley to Buy Canadian Wheat With Money Received in
the Prairie Provinces to May 1
Attorney General Mitchell to Inquire Into Disparity of
From the New York "Times" of Dec. 8 we take the
Wheat and Bread Prices.
following Canadian Press advices from Toronto Dec. 10:
An investigation has been started by the Department of
The William Wrigley, Jr. Company, Ltd., has decided that it will buy
Justice to determine the reason for the difference in prices Canadian wheat for May delivery with all money which shall become
between wheat and bread, Attorney General Mitchell due to the company in Manitoba, Saskatchewan and Alberta from Dec.
12 to May 1, it was announced today by F. U. Ross, president of the
stated on Dec. 9 according to an Associated Press despatch company.
from Washington given in the New York "Times." The
In other words, he said, the company proposes to take wheat in ex.
change for the firm's products. The purpose, he said, is threefold:
account also said :
the company
Heretofore, Chairman Legge and members of the Farm Board have
pointed to the apparent disparity of prices. The chairman,
in making
public a survey, said that only 39 cents of the consumer's
dollar for
bread went to the farmer, the miller and other handlers of wheat
before
it reached the baker.
Sam R. McKelvie, grain member of the Board, contended that
whether
the farmer received $1 or $1.50 per bushel made no difference in the
retail price of bread. He said that if a bread• price could be obtained
corresponding to the low price of wheat, consumption would be increased,
benefiting not only the consumer but also the producer.
First,
will not take cash out of Western Canada, but on
the contrary will leave it there in Western Canada's own coin—wheat.
Second, the company believes that wheat at 65 cents a bushel is cheap
and that it will make money by putting some of the company's resources
in wheat and holding it indefinitely if necessary.
Third, the company believes that the plan will relieve, to some extent,
a carrying strain on farmers, pools, Western business and banks.
Announcing the formation of the "Wrigley wheat investment fund
to buy and hold 1,000,000 bushels of Canadian wheat," Mr. Ross said
the offer was "in no sense a gamble, nor is it an advertising stunt."
In a letter addressed to wholesalers of the firm in the Prairie Provinces,
Mr. Ross says:
"If wheat goes up, as we feel is probable, we will profit But if it
goes down, we become partners with the West, and as such, take our
loss with them."
Grain Deal Held Gambling—Illinois Supreme Court Rules
Broker Cannot Collect.
The Illinois Supreme Court refused on Dec. 11 to rehear
the appeal of a Chicago broker from a judgment relieving
Ontario Farmers Ask Closing of Liquor Shops
a client of paying his loss in a grain futures transaction
During Slump.
on the ground that it was a "gambling debt." We quote
Canadian Press advices as follows from Toronto Dec.
from Associated Press advices Dec. 11 to the New York 11 were published in the New York "Times" Dec.
of
12.
"Times," which continued:
A resolution asking the government to close all liquor stores "during
The court held that purchases made without expectation of
taking
delivery were gambling.
James K. Riordon, the broker, operating on the Chicago Board
Trade, sought to compel William McCabe, a farmer, to fulfill the of
tract to purchase grain futures by which McCabe would take a loss. conlower courts accepted McCabe's contention that his transactions The
were
"gambling" and absolved him of obligations.
Mr. Riordon declared Mr. McCabe's dealings were not "gambling"
but "speculation" and charged that McCabe was still buying and selling
on the Board of Trade.
His final argument for a rehearing declared that "any one of the
1,800 members of the Board is likely to be branded as a gambler
if
one of his clients makes a trade through him that terminates in a loss
and then 'welsh& on his contract."
Sends Farm Expert Here—Argentina Designates
M. P. Catan as Agricultural Attache.
the present economic crisis" and until such time as the crisis had passed,
was unanimously adopted by the annual convention of the United Farmers of Ontario today.
The resolution, which passed without discussion, was sponsored by the
women's branch of the organization, which had passed it late yeiterday.
Appropriation for Construction Work in Behalf of Unemployed Fixed at $116,000,000 by Conferees—
President Hoover in Response to Senate Resolution
Says Emergency Committee Has No Report on
Unemployment—Senate Drops Robinson Amendment—House Returns Bill to Conferences.
Reporting that President Hoover won a victory on Dec. 13
in his conflict with the Senate over relief legislation when the
Senate and House conferees on the emergency public works
bill eliminated the Robinson amendment which took from
the President and his Cabinet authority to allocate the money
to proposed projects and agreed on an appropriation of
$116,000,000, a dispatch from Washington on that day to
the New York "Times" stated in part:
Under the date of Dec. 12, a cablegram from Buenos
Aires to the New York "Times" stated that the provisional
government has appointed Maurice° Perez Catan as agricultural attache at its Washington Embassy. He is a professor of the agrarian and veterinarian faculty at La Plata
The Senate had proposed the allocation of $118,000,000 and the House
University and has specialized in rural economy. It is likeof $110,000,000.
wise said:
The compromise was reached by reducing to $3,000,000 the $5.000,000
The United States Government hae an agricultural attache at its Buenos proposed in Senator Oddie's amendment for the continuation of roads on
Aires Embassy and has watched farm production and prospects. Argen• unreserved public domain and retaining Senator Hayden's amendment
providing $5,000.000, for highway building in national forests.
tina's attache in Washington will watch marketing prospects.
The amendment of Senator Couzens requiring that local labor should be
employed on all Government work and should receive the highest wage
Uruguay Buys Grains—Government Takes Over
scale of the community was rejected.
Exportable Surpluses of Wheat and Corn.
Conference Virtually Unaninious.
The discussion in the conference dealt chiefly with Senator Robinson's
The following Montevideo cablegram, Dec. 13, is from the
amendment and the need of keeping down appropriations to a point where
New York "Times":
additional taxes would not be required next year. There was virtually
The Uruguayan Government has definitely gone into the grain business unanimous agreement as to the desirability of granting to the President
and his Cabinet power to allocate the 8116,000,000 fund.
this year and will have the exclusive selling of wheat and corn exports.
Representative Wood of the House Appropriation Committee said that
Following a Congressional authorization for governmental purchase of the
could not be adequately relieved if Congress insisted on
unemployment,
exportable surplus of the wheat crop, the Chamber of Deputies has
passed
a bill authorizing the national administrative council to purchase directly deciding when old where the money should be expended. The administration would push projects first in sections where the unemployment was
from the farmers the entire exportable surplus of the corn.
greatest and thereby relieve the worst situations by employment on GovernUnder date of Dec. 11, Montevideo advices to the "Times," ment buildings as conditions justified.
SenAtor Robinson. on learning of the conferee's action, stated he would
said:
raise no objection to the adoption of a conference report which eliminated
The Uruguayan Government has decided to purchase the entire ex- his amendment.
portable surplus of this year's wheat crop and to pay the millers
a
As was indicated in these columns last week (page 3805)
premium on flour exported. The National Seed Commission has been
instructed to complete its purchases of wheat for seed purposes before the bill providing from appropriation of $110,000,000 for
April 30.
construction work was passed by the
House on Dec. 9, while
3974
FINANCIAL CHRONICLE
the bill adopted by the Senate on Dec. 11 carried an appropriation of 8118,000,000; the Senate bill, as was likewise
noted, curtailed the President's control over the fund.
Regarding the Senate attitude toward the action of the
conferees on the bill we quote the following from the Washington account to the New York "Herald Tribune," Dec. 15:
Protests are Expressed.
At the outset of the Senate's session to-day (Monday, Dec. 15) strong
protest arose over the action of the Senate conferees on the $116,000,000
emergency construction appropriation bill. Meeting Informally with the
House conferees Saturday, the Senate group agreed to recede on the
amendments which Senator James E. Couzens, Republican, and Senator
Joseph T. Robinson, Democratic leader, made to the original House bill.
Senator Couzens's amendment provided that labor employed on the
the
emergency construction works should be local labor and should be paid
the
highest prevailing wage scale. The Robinson amendment took from
money
President the right to exercise his own judgment in transferring
specifically appropriated for various projects from one category to another
to meet some unusual crisis.
The Senate conferees had not been appointed officially when they met
of
with the House group Saturday. but Senator Wesley L. Jones, chairman
the Appropriations Committee, called on those who were to be appointed
and they decided to submit a conference receding from the Senate amendments. Senator Couzens made a vigorous protest against such procedure.
He demanded to know how the Senate conferees could in good faith support.
the Senate amendments when they had already yielded. Senator C. C.
Dill moved to instruct the Senate conferees to stand by the Robinson
amendment and to this was added the Couzens amendment a little later.
and
Senator Jones, after a discussion of an hour and a half, gave way
amendannounced that unless the House conferees yielded on these two
gave
ments he would report them back to the Senate for action. After he
this assurance, Senator Dill consented to drop the plan of instructing the
conferees.
For,. 131.
favorable consideration as a means of obtaining all available information
about the unemployment situation and the steps which the Government
should take.
The resolution requested the Appropriations Committee to call Colonel
Arthur Woods, chairman of the President's Emergency Committee on
Unemployment; John Barton Payne, chairman of the American National
Red Cross; Major General Lytle Brown, chief of Army Engineers; Thomas
MacDonald, chief of the Bureau of Public Roads; James A. Wetmore, the
Acting Supervising Architect, and J. Clawson Roop. Director of the Bureau
of the Budget.
On Dec. 17 the Senate refused to recede on two of the
amendments in controversy with the House. Advices to the
New York "Times" added:
They would permit Alabama and Georgia to use their proportionate share
of the $80.000,090 road-building appropriation as Federal loans to match
previous appropriations which the States have been unable to use because of
their inability to appropriate State funds. The two amendments were
voted on to-day as a single item, and were upheld 42 to 39.
In a way the ballot was considered as a test vote on the administration
relief plans, but many Senators obviously voted for the amendments in
the belief that they have no effect whatever on the general plan.
Robinson Amendment Up Next.
A real test of the Senate's attitude was averted this afternoon when
announcement of the death of Senator Greene of Vermont caused a sudden
adjournment until to-morrow.
Senator Robinson's amendment, over which the conferees disagreed, was
under consideration. It would remove from the bill the authority of the
President to reallocate the appropriations among the projects specified.
One other amendment to be acted upon is that of Senator Couzensspecifying that contractors employ local labor and pay the highest prevailing local
wages on the projects.
Regarding the Senate action on the bill on Dec. 18 we
quote the following from the "Times":
Bill Sent to Conference.
Senate Kills Robinson Amendment.
The bill was then sent to conference, and Senators Jones, Reed Smoot and
Discussion of the $116,000,000 public works bill in the Senate was
Frederick Hale, Republicans, and Carter Glass and E. S. Broussard,
marked by a speech by Senator McKellar which Senator Glenn of Illinois
Democrats, were named as conferees.
to alleged reflected upon the President's character.
The fact that Senator Jones was driven to make his promise to-day
The Senate deleted the principal point of contention with the House
bring the two amendments back to the Senate may mean a deadlock
wide when it voted, 42 to 39, to recede from the Robinson amendment, which
between the two houses over the question of giving the President
would have taken away the President's authority to reallocate the money
discretion in applying the emergency funds.
respect appropriated for specific works. This bill, carrying three remaining Minor
Senator La Follette's resolution to put the Senate on record with
the Senate amendments, which are not expected to hold it up any length of
to President Hoover's relief policy, to the effect that it was the sense of
the time in conference, will be considered by the conferees early to-morrow.
Senate that relief of human suffering should be considered ahead of
The fact that the Senate receded on the Robinson amendment was conThe
welfare of wealthy income taxpayers, went over until to-morrow.
President's sidered as removing the one great obstacle to agreement of the two houses
the
of
text
the
substitute
to
planned
he
said
insurgent
Wisconsin
on the President's program for unemployment relief.
statement for the preamble he had prepared, to meet some criticism.
The Senate vote on Senator Jones's motion to recede on the Robinson
from
recede
to
refused
On Dec. 16, the Senate conferees
amendment was largely on party lines, although many independents voted
their position on the Robinson, Couzens and Black amend- with the Democrats.
The 42 votes were those of 35 Republicans and seven
ments to the bill, said the New York "Times" in its WashDemocrats, while the 39 who voted against the motion were
ington advices that day; in part it also stated:
The conferees carried out their pledge, given to the Senate yesterday 11 Republicans and 27 Democrats. From the "Wall Street
and upheld these amendments, the most important of which is the Robin- Journal" of last night (Dec. 19) we take the following regardson proposal which would take from the President and his Cabinet authoring disagreement on the part of the House.
ity to allocate the money in the building and road program.
on
The House sent the $116,000,000 emergency construction bill back to
Senator Couzens's amendment provided that the labor employed
government projects shall be local and the pay shall be the highest wage conference with instructions to insist upon disagreement on three amendscale of the community, while that of Senator Black stipulates that the ments. Other parts of the conference report upon which both sides are in
pur- agreement were adopted.
government loan to Alabama and Georgia, made years ago for flood
House conferees have refused to make any compromise on the Black and
poses, thr.11 be canceled. . . .
the Couzens amendments to the 8116,000,000 construction bill, notwithstandto
objectionable
most
Se:alter Robinson, author of the amendment
which
administration, said that he would not fight for his views, since the Demo- ing the action of the Senate in receding on the Robinson amendment
cratic members of the House conference committee held that the allocation would have taken from the President authority to reallocate the funds.
said
conferees
situation.
Senate
Senator Jones (Republican, Wash.) leader of the
of the money by the President was most desirable in the present
were "adamant" and refused to either accept or comconferees
the
House
the
to
sent
Hoovei
President
that it is up
On the same day (Dec. 16)
promise on the Couzens or Black amendments. He believes
Senate a message, in response to the resolution of that to the Senate to recede on these matters if action is to be secured without
body, informing it that the President's Emergency Committee had made no report on unemployment. This message follows:
To the Senate:
lam in receipt of the resolution of the Senate reading as follows:
transmit to
Resolved, That the President be, and is hereby, requested to
the following:
the Senate, if not incompatible with the public interest,
Unemployment.
on
The report of the President's Emergency Commission
Colonel Arthur D. Woods, chairman.
unemployThe President's Emergency Committee has made no report on
Arthur
ment. I have received notes and verbal suggestions from Colonel
on
Government
in
the
departments
Woods from time to time and from the
the
this subject. These were confined to guidance in formulation of
notes
recommendations which I have already laid before Congress. Such
and discussions are necessarily passing and tentative, and they represent
which
officers
that confidential relation of the President with Government
should be preserved.
HERBERT HOOVER.
The White House, Dec. 16 1930.
In prompt retaliation (said the Washington dispatch
Dec. 16 to the New York "Herald Tribune"),Senator Robert
M. La Follette, Wisconsin insurgent Republican, introduced
a resolution by which the Senate would virtually direct its
and
Appropriations Committee to require Colonel Woods
several others to furnish specific and detailed information on
unemployment conditions throughout the country. Senator
La Follette announced he would press the resolution tomorrow.
The resolution of Senator La Follette requesting the
Senate Committee on Appropriations to call certain officials
of the Government for statements on unemployment, was
agreed to by the Senate, Dec. 17, without dissent being
voiced. The "United States Daily" of Dec. 18 in which
this was stated, went on to say:
Action on the resolution was hastened by Senator Watson, of Indiana,
the Majority Leader, who told the Senate that he hoped it would receive
further delay.
is not
The House will act first upon the report of disagreement and it
that
anticipated that this body will recede from its position. It is upon this
Senator Jones bases his conclusions that the Senate will have to recede.
Conferees Agree to Appropriation of $45,000,000 for
Loans to Farmers in Drouth Areas for Food, Feed
and Seed—Bill Passed by House and Senate.
Agreement was reached on Dec. 18 on the part of the conferees of the House and Senate to fix at $45,000,000 the
appropriation for advances or loans to farmers in the drouth
or storm-stricken areas of the United States for the purchase
of food, feed, &c. It will be recalled (as reported in these
columns a week ago, page '3806) that on Dec. 9 the Senate
passed the joint resolution authorizing an appropriation of
$60,000,000. On Dec. 6 the House Committee on Agriculture decided upon an appropriation of $30,000,000—$25,000,000 for drouth relief and $5,000,000 for farmers in the
storm area. On Dec. 18 the House rejected the Senate
amendments by a vote of 225 to 147 over Democratic protests, rejected a proposal to suspend the rules and pass the
Senate measure, and then passed legislation appropriating
$30,000,000 proposed by the House Committee. The bill
was sent to conference on Dee. 18 and the conferees on the
same day agreed to compromise on an appropriation of
$45,000,000. Without a roll call yesterday (Dec. 19) the
House agreed to the compromise, and the Senate also yesterday accepted the appropriation proposed by the conferees.
The Senate action is indicated in the following from Washington, which we take from the "Sun" of last night(Dec. 19):
The Senate after weathering a ninety-minute filibuster by Senator Howell.
Republican, of Nebraska, took up consideration this afternoon of the
•
DEC. 20 1930.]
FINANCIAL CHRONICLE
$45,000,000 compromise conference report on the drouth loan which
an
hour or two before had been adopted by the House.
Senators McNary, Republican, of Oregon, and Robinson
. the Democratic leader who sponsored the $60,000.000 bill passed by the
Senate,
both asked for acceptance of the compromise. Senator McNary,
replying
to Senator Caraway. Democrat, of Arkansas, said that he
thought there
was "ample provision" in the bill to permit the Secretary
of Agriculture
to loan money to the farmers for the purchase of food in
the event of"dire
emergency," although the specific provision allowing loans
for this purpose was stricken from the bill. It does provide, however,
for loans
"Incidental to the production of crops."
Senator Robinson said he thought that more than $45,000,0
00 was
necessary, but that could be determined within the next two
months, and
if more were needed he would ask for it.
On Dec. 15 efforts were defeated to force the $30,000,000
appropriation through the House as a substitute for the
Senate $60,000,000; as to this we quote the following from
the Washington account Dec.15 to the New York "Times
":
In the overwhelmingly Republican House, Hoover
leaders failed by
nearly two-score to muster enough votes to suspend
the rules and pass
the $30,000,000 drought measure as a substitute for the
$60.000.000 Senate
bill, with its clauses for lending money to farmers
for food, which are
opposed by the President.
The vote was 205 to 159 in favor of a motion by Representative
Haugen,
Chairman of the Agricultural Committee, to suspend
the rules and pass
the Senate bill with an amendment which would substitut
e the House
Committee's proposal for allotting $30,000,000 to the drought
-stricken regions for seed, feed and live stock loans only. But
as a two-thirds vote
was required, the first major attempt of the leaders to
show their strength
for the administration was frustrated. Sixteen
members of the party
deserted them and 22 others paired with Democrat
s and thus gave up
their right to vote.
From its Washington correspondent on Dec. 17, the
"Times" reported the following:
President Hoover again to-day took a hand
in the situation confronting
emergency relief legislation and, as a result, administr
ation leaders in both
Howes of Congress reached a decision
to obtain final action on the 3116.000,000 public works bill and the drought
relief measure before adjourning
for the holidays.
The President, in a White House conference
with Senator Watson, the
floor leader, and over the telephone with Represent
ative Tilson, the House
floor leader, urged action before the recess on both
relief measures.
Shortly after Senator Watson conferred with the President
, the drought
relief measure was brought up in the House, although only
an hour previously Representative Tilson had refused to allow the
measure to be called
up under unanimous consent. He stated then that "at
least 50" of his
party were opposed to consideration at this time •••
House Ends General Debate.
General debate on the drought loan resolution was
House this afternoon and the reading of the bill for completed by the
amendments began.
Only one paragraph was read, however, and
adjournment was taken
preparatory to a battle to-morrow, when the
Democrats will try to force
the Western and Northwestern farm bloc on the Republica
n side to go on
record on the differences between the $30,000,0 in
00
the House bill for
drought relief and the Senate's $60,000,000 appropria
tion with its provision for food and clothing loans.
•*•
The drought relief resolution before the House was
amended to substitute for the controversial Senate provisions the language
of the original
House measure, with the added provision that the money
can be used for
seed, feed and fertilizer loans and "for such other purposes
of
tion as may be prescribed by the Secretary of Agriculture." crop producHyde Before the Committee.
Chairman Haugen of the House Agriculture Committee
presented the
bill following the appearance before the Committee this morning
of secretary Hyde, who was asked to clarify the administration's
position on
drought relief. Democrats had contended that the sum of
was originally recommended by the Department of Agricultu $60,000.000
re, but Mr.
Hyde said that 1125,000,000 would be sufficient to take care
of the needs
of drought-stricken farmers in the 24 affected States.
Representative Jones of Texas asked the Secretary whether
the Agricultural Department would use all of the $60,000,000,
as proposed by
the Senate measure if it were enacted.
"There is no need to provide more money than necessary
," Mr. Hyde
replied. "It is unnecessary to throw the budget out of
balance in this
manner."
Secretary Hyde said it had become almost a custom for
farmers,
with misfortunes, to seek loans from the Federal Government. He stricken
that there had been a good measure of success among the farmers admitted
in getting
these loans in the past, but that so far they had been confined to
seed,feed
and fertilizer for making crops.
"I personally regard loans by the Federal Government for food
on such
thin security as a dangerous step toward the'dole'system in this
country,"
Mr. Hyde said. "It is our view that this principle of Federal loans
should
not be expanded."
The Secretary's reference to the "dole" caused comment in the
House
soon after the bill had been presented.
"What if it is a dole?" exclaimed Representative McKeown of
Oklahoma.
"The dole has saved the English Government."
General debate in the House is usually the occasion for
speeches on
any subject, regardless of the matter under consideration, but
to-day
every word of the three and one-half hours' discussion was
confined to
the drought-relief proposals. Democrats warned of impending
"starvation
in urging the adoption of the Senate proposal for food loans,
while Republicans, even from the agricultural mid-West denied that
farmers ever
starve.
As to the action on Dec. 18, when the conferees agreed
to
fix the appropriation at $45,000,000, the New York
"Times"
Washington dispatch of that date said in part:
Conference Committee Acts.
The drought loan measure was agreed on in conference
by Senators
McNary, Smith and Norris and Representatives Haugen,
Aswell. As it passed the House it called for an authoriza Purnell and
tion
000,000 instead of $60,000,000 as proposed by the Senate and the of $30,conference
agreement on $45,000,000 represented a "split of the
difference."
A slight change in phraseology which would permit the use of
money
for food loans in great emergencies, despite the striking of word
food from
the authorization, was accomplished by changing the phrase to
say that
3975
the Secretary of Agriculture may,for"purposes
incident tocrop production,"
allocate this money.
The House voted on the drought measure after
the administration had
weathered an assault by Democrats.
The real test came on a motion of Chairman Haugen
of the
Committee to substitute the wording of the House resolution Agricultural
for the Senate
proposal.
House Democrats made one last attempt to vote down this
motion to-day,
appealing to Republicans from the West and Middle West
to record themselves in favor of the farmer, but administration lines
held and at the rollcall only 17 Republicans joined them. Six Democrats
voted with administration forces. Representative Black of New York was
one of the six who
later voted against the measure itself.
"I am tired of New York holding the bat for the Federal
Government
while it plays Santa Claus to the American farmer,"
he said.
Hail Damage Is Included.
The administration forces permitted an amendment from
Representative
Johnson. Republican of South Dakota, to include damage wrought
by hail,
besides drought and storm,as the basis for a loan. Represent
ative bicDuffie
Democrat,failed in an attempt to add frost damage.
Republican leaders were sure of their majority from the start.
Speaker
Longworth did not occupy the chair, but took a place on the
floor.
Representative Purnell, ranking majority member of
the Agricultural
Committee, notified the House that the $30.000,000 possibly
would be
increased in conference with the Senate. He asked that
the House conferees
receive' something to trade on."
His speech was particularly directed against an amendme
nt offered
by Representative Jones of Texas, to increase the fund
from $330,000,000
to $60,000,000. It was voted down by 189 to 133.
Representatives Jones and Aswell, the latter the ranking
Democrat on
the Agricultural Committee, led the fight for the Democrats.
Mr. Aswell warned members from the West and Northwes
t that they
"must answer back home for what you do here." The
$60,000,000 appropriation proposed was not for a gift, he said, but for a
loan to "those
who prefer to mortgage their labor and their crops to appealing
to the
Red Cross or community charity."
The 205 who voted on Dec. 18 in favor of the Haugen
motion to suspend the rules were 219 Republicans and 6
Democrats; those voting in opposition to the motion (147)
were 129 Democrats, 17 Republicans and 1 Farmer-Laborite.
House Passes Bill Providing $160,000,000 Additional for
Carrying into Effect Agricultural Marketing Act.
The House of Representatives passed on Dec. 18 a bill
providing for an additional appropriation of $150,000,000,
which would become part of the revolving fund of $500,000,000 authorized to be appropriated by the Agricultural Marketing Act. The $150,000,000 additional funds were requested by President Hoover in a letter addressed to the
Speaker of the House on Dec. 8 and given in our issue of
Dec. 13, page 3801. The bill providing for the appropriation
was introduced on Dec. 17 by Representative Wood of Indiana, Chairman of the House Committee on Appropriations.
The bill passed the House on Dec. 18 with but little discussion, said the "United States] Daily" of Dec. 19, which
further stated:
The Senate Appropriations Committee later ordered a favorable
report
on the Bill.
The additional appropriation supplements appropriations of
$250,000,000
heretofore made by Congress for the Farm Board's revolving fund
for loans
to organizations for farm relief. The House Committee on Appropriations
agreed upon the Bill Dec.18 at an executive session and ordered it favorably
reported to the House.
The $100,000,000 remaining of the authorized fund of$500,000,000 will
be
considered for inclusion in the regular independent offices appropria
tion
bill, not yet reported by the Committee on Appropriations.
More Time Asked to Repay Loans for Farm Materials.
According to the "United States Daily" of Dec. 19, a
resolution directing the Secretary of Agriculture to extend
for 18 months the time for repayment of loans to farmers for
seed, feed or fertilizer made since Jan. 1 1925 was introduced
in the Senate Dee. 17 by Senator Nye (Rep.), of North
Dakota.
567,540 Unemployed Listed in Capital and 25 States188,870 Additional Reported Laid Off Without
Pay—Figures Supplied by Census Bureau.
Partial results of an unemployment survey made public
on Dec. 13 by the Census Bureau revealed 567,540 completely
unemployed persons in 25 states and District of Columbia,
and 3 large cities from which returns were received. United
Press advices, Dec. 13, from Washington published in the
New York "Herald Tribune," in reporting this added:
In this group of more than a half million persons were included
only
those persons out of work who were able to work and were seeking
positions.
They constitute 1.3% of the population in the area covered.
An additional 188,870 persons were said to have jobs but to be laid
off
without pay. There were 49,453 persons without jobs and unable
to work.
The re-check listed 87,078 persons having jobs, but idle on account
of
sickness or injury. Another 26,103 persons were idle and not
looking for
work. There were 30,558 persons having jobs but voluntarily idle
without
pay. The count listed 32,262 idle persona having jobs and drawing
pay.
For Buffalo the survey listed 19,920 persons completely
unemployed,
which was 3.5% of the city's population. In Philadelphia there
are 71,156
completely unemployed, or 3.6% of the city's inhabitants.
Rochester re.
ported a total of 10,715 in the class of completely unemploye
d, which was
3.2% of its population.
3976
FINANCIAL CHRONICLE
The survey pointed out that its April census had listed total unemployed
for the United States at 2% of the population. It said it may be assumed,
cons.
therefore, that the areas-mostly in the South and West-for which
plete figures are now available are not typical of the country, because they
show only 1.3% unemployed.
In the class of persons able to work and looking for work the survey
listed 8,999 unemployed in the District of Columbia, or 1.8% of the population.
From the Washington dispatch, Dec. 13 to the New York
"Times" we take the following:
a
In the areas covered in the survey, the total number of persona out of
this
job, able to work, and unable to find a job, was 678,640, or 1.8%,
1/10%,
or
group being designated Class "A." In addition 188,870 others,
pay.
were listed under Class "B" as having jobs but on furloughs without
unemployed
Of the areas covered, Texas showed the greatest number of
In
with 95,383. It was followed closely by Philadelphia, with 84,641.
in RochBuffalo the total for both "A" and "B" groups was 22,894, and
ester 14,135.
The figures are based on the status of the individual on the day preceding
those enthe call of the enumerator. They do not give consideration for
will
gaged only in part-time employment. The figures for the other States
be published later.
distinThe list of the twenty-nine areas, with the "A" and "B" groups
guished, follows:
Class B.
Class A.
Class B. AreaClats A.
Area4,292
14,778
8,551 Nebraska
21,441
Alabama
276
2,888
Nevada
1,533
7,990
Arizona
5,347
8,184
5,531 New Hampshire_
12,820
Arkansas
919
5,654
7,502 New Mexico
22,896
Colorado
15,501
21,621
726 North Carolina
Delaware3,185
1,493
5,982
1.676 North Dakota
Dist. of Columbia-- 8,999
19,436
75,827
5,631 Texas
33,120
florida
2,909
5,293
11,950 Vermont
27.672
Georgia
8,898
26.461
1,275 Virginia
8,194
Idaho
13.959
21,375
Virginia
West
9,183
22,340
Iowa
2,974
19,920
6,005 Buffalo, N. Y
22,157
Kansas
3,422
12,818 Rochester, N. Y- _ _ - 10,715
29,452
Kentucky
13,485
71,156
Pa....
,
Philadelphia
7,641
13,419
Maine
7,198
24,438
Maryland
4,895
10,798
Mississippi
188.870
667.540
4,044 Total...
10.963
Montana
[Vol.., 131.
Marked Success Attained.
Admin"Marked success has attended one of the principal efforts of the
said Col.
istration to increase employment -in the field of public works,"
mayors
Woods. "The reports from mayors of these cities clearly reveal that
increase
and city governments have patriotically co-operated in the effort to
beginning
the
at
urged
public building and construction projects. This was
when
of last winter by President Hoover, who pointed out that at a time
that as
industrial employment was declining it seemed extremely important
the
many as possible of the workers should find an opportunity to work in
field of public construction."
emOf the 363 cities which have been asked for statistics on municipal
New
ployees, the largest increases in employment were reported from
men
Britain, Conn., and Mishawaka, Ind. New Britain had a total of 1,250
Mishaat work on Nov. 15 1930, compared to 316 employees a year ago.
inwaka increased its employees from 170 to 689 workers. Other large
creases were Racine, Wis., from 225 to 496; Peoria, Ill., from 622 to 1,054
employees.
municipal
employees; and Cleveland, Ohio, from 9,600 to 12,124
State Workers Increase.
in
Twenty States have reported that the number of workers employed
States
November of 1930 total 182,380. In November of 1929 the same
employed 171,884. The increase is more than 6%.
New
States which have reported are Maine, New Hampshire, Connecticut,
South Dakota,
York, New Jersey, Ohio, Michigan, Wisconsin, Minnesota,
Wyoming,
Maryland, West Virginia, Arkansas, Oklahoma, Texas, Montana,
New Mexico, Utah and Oregon.
road projects
A sharp increase in the number of workers on Federal-aid
men are on
has been noted within the last few months. A total of 288,732
on the same
1929
In
1930.
the pay roll of Federal-aid roads as of Nov. 1
been qualifydate the number of workers was 259,206. States have rapidly
workers
ing for Federal aid on these road projects, and the employment of
has shown an increase of 21% within the last few months.
20,540 Heads of Families Given Employment in New
York City at $15 a Week.
The Emergency Employment Committee announced on Dec.
13 that it had provided 20,540 unemployed men and women
who are heads of families with immediate jobs for which the
committee pays wages of $5 a day for three days a week
New Census of Idle Ordered by U. S. Census Bureau
its $8,000,000 fund now being'ralsed. The New York
from
Returns
on
To Begin on Jan. 15 and to Be Based
t
of Dec. 14, from which we quote, added:
from Twenty Cities-Col. Woods of Presiden "Times"
was as
distribution of the work through Friday night (Dec. 12)
The
Work
tion
Construc
Hoover's Commission Urges
follows:
Sanitation Commission.
by Colleges.
Parks.
lands, clearing Utter
(Painting, carpentering, pruning. refor- (Draining marsh
from vacant lots, dre.)
Plans are being formulated by William M. Steuart, Direcesting and unskilled work.
2,600
Bronx
and
Manhattan
950
on Manhattan
1,550
tor of the Census, for making a more accurate enumerati
2,450 Brooklyn
Bronx
890
Queens
1.025
dispatch
a
Brooklyn
says
600
of the unemployed in the United States,
Richmond
1,100
Queens
625 Other Non-Profit-Making Institutions in
Dec. 11 from Washington to the New York "Times"; the ac- Richmond
count continued:
The tabluation, which will
section of the unemployment
twenty representative cities.
ment returns from the same
figures are based.
pay as well
The count will include all persons who are laid off without
as those able to work and looking for jobs.
Committee for
Colonel Woods, chairman of the President's Emergency
universities
Employment, sent letters today to more than 250 colleges and
to create
asking them to speed up their construction programs in an effort
employment.
"I am informed," Colonel Woods wrote; "that the failing costs of buildaccelerating
ing construction are in themselves an important reason for
endowed
plans and operations, thus securing greater efficiency in the use of
compelling
funds. The human need now faced is, however, an even more
reason at this time."
worth of
Colonel Woods has been informed that more than $25,000,000
next few
building construction is under way or will be started within the
months at the Universities of Harvard, Chicago and Minnesota.
UniverFrederick M. Mann, director of the School of Agriculture of the
that more than
sity of Minnesota, in an estimate sent to Colonel Woods, said
undertaken
$200,000,000 worth of dormitory construction alone could be
making any
advantageously at this time by colleges and universities without
of the institutions.
call upon the invested or endowment funds
of Minnesota would borrow $4,200,Colonel Woods said that the 'Inf. o•ni:,units. The uni000 to start construct:on iisine1.4tely of eleven dormitory
college strucversity already has started work on one dormitory and two
tures to cost $1,100,000, he said.
construcbuilding
that
The University of Chicago informed Colonel Woods
and that within the next two
tion totaling $3,929,000 is under way there
will be undertaken.
months additional construction costing $4,513,000
would be spent by Harvard before
Colonel Woods said that $8,200,000
Oct. 1.
-Greater
Increased Employment on Public Works
MuniciFederal,
in
Engaged
Workers
Number of
Says.
pal and State Projects, Colonel Woods
the public
A great increase in employment is reported in
municipal
and
State
Federal,
the
of
works programs
country,
entire
the
t
throughou
branches of the Government
Dec. 12 by
public
made
and
received
reports
according to
Emergency
Col. Arthur Woods, Chairman of the President's
Daily of
States
United
The
nt.
Employme
for
Committee
Dec. 13, noting this added:
public building
A minimum of 200,000 more employees are engaged on
estimated on the
projects this year than at the same time last year, it is
basis of reports thus far received.
CommitMayors of 210 cities, replying to inquiries from the President's
the same
tee, reported that 11% more workers are employed now than at
were
workers
time a year ago. In November of 1930 a total of 248,784
employees
employed in public work construction. In November of 1929, the
of the same cities numbered 224,698.
All Boroughs.
6.620
450 Men
1,530
Women
Docks.
general
and
Painting, carpentering
20,540
150 Total
repair work on docks
This grouping does not represent an allotment of employment among the
in the
boroughs or among city departments. Applicants are interviewed
order of their appearance at a central bureau and are assigned as rapidly
as jobs are open.
Hospitals.
begin on Jan. 15, will give, he said, a crosssituation and will be based on returns from
Comparisons will be made with unemploycities on April 1, on which date all present
In its Dec. 10 issue the "Times" said:
The Emergency Employment Committee revealed yesterday that approxiin New
mately 1,011,800 days of work for unemployed heads of families
to
York had been provided and financed by the Committee since it began
function.
placement
job
Through the Emergency Work Bureau, the Committee's
three-day-aagency, work has been found for 18,292 men and women on a
40
week basis at $5 a day. It was declared at the office of the Committee,
excess of early
Wall Street, that although the demand for jobs has been in
estimates, actual placements are weeks ahead of schedule. The original schedule was to find jobs for 20,000 by Jan. 1.
The record has been made despite limitations as to the equipment, tools
and supervising foremen that co-operating agencies, such as the Department
of Parks, Sanitation Department and non-profit-making institutions, could
make available.
Postoffices Employ Over 40,000 Unemployed to Help
With Christmas Mail.
advices from Waghington, Dec. 16, said:
Press
Associated
at
More than 40,000 persons out of work last week were buoy today
$6.60 a day.
mail.
The Postoffice Department needed them to help with the Christmas
It has $7,200,000 to pay them.
8,600 are
Forty thousand are temporary clerks, carriers and laborers and
vehicle service
sorting packages and letters on mail trains. The motor
hired 1,000 and 250 were added to the force of rural carriers.
Prof. Dyer of Vanderbilt University Criticizes Continuance of High Wages to Restore Prosperity.
Associated Press advices from St. Louis, Dec. 11, said:
the opinion
The plea for maintaining wage levels to restore prosperity, in
of Dr. Gus W. Dyer, professor of economics at Vanderbilt University,
proclaimed."
Nashville, Tenn., is "the biggest piece of economic bunk ever
rs'
"The depression has hung on," he told members of the Manufacture
and Merchants' Association, "because we have tried to keep up prices in a
level,
depression. When our leaders said wages must stay at the prosperity
what they really said was that prices must stay at that level."
Federal
President Hoover Grants Dec. 24 Holiday to
Capital.
in
Workers
order
President Hoover on Dec. 15 issued an executive
in the
granting to all employees of the Federal Government
to give
District of(Columbia a full day's holiday on Dec. 24
DEC. 20 1930.]
FINANCIAL CHRONICLE
them more time to do their shopping and attend to other
matters incident to Christmas. We quote from a dispatch
Dec. 15 to the New York "Times" which further said:
3977
be needed in the cities but that in the hearings of the
Committee on Agriculture it was brought out that farm families also have
need for such aid.
Mr. McAdoo's letter, dated Dec.8, which was placed
in the record of the
Senate Committee on Agriculture, Dec. 11, follows in full
The President said, however, that the order "is not
text:
to be deemed as
establishing a precedent," indicating that he would
Distribution of Surplus Wheat Recommended.
not revive the halfholiday on the day before New Year's which was put
Dear
Senator
Capper: Thank you warmly for your letter of the 2d
aside by President
instant
Coolidge.
and for copy of your S. J. Res. 210,"To authorize the
distribution of 40.000,000 bushels of surplus wheat for relief purposes."
It is gratifying that you are taking such an active interest
in this essential
President Swope Announces Plans for
Stabilization of humanitarian measure and I am very glad to comply with your request for a
statement of my views.
Employment in Incandescent Lamp
Department
Let me first address myself to the form of legislation
which I think should
of General Electric Co.
be enacted to most effectively and quickly organize
the relief work and to
successfully distribute essential food to the millions of
A stabilization of employment plan whereby employee
unemployed and
s of destitute people throughout the country.
the Incandescent Lamp Department of the General
My own view is that your resolution does not go far enough,
Electric
Company of not less than two years continuous service,
that it does not appropriate a sufficient amount of wheatand especially
to meet the
will exigency.
I would suggest a measure along the following lines:
be guaranteed fifty weeks work for the year 1931,
was an"Section 1. Provide for the creation of the Emergency Relief
Commission,
nounced this week by President Gerard Swope and
will be- composed of three members, one experienced in milling, another in baking,
to be appointed by the President and confirmed by the Senate:
come effective January 1 1931 upon acceptance by
Commissio
n60% of ers serve without compensation.
the eligible employees. In June of this year Presiden
"Section 2. Federal Farm Board to be directed to deliver,
t Swope
without cost
from time to time,to the Commission,upon its requisition,
announced a comprethensive plan to minimize the cause
up to a maximum
and
75,000,000 bushels of wheat.
effect of unemployment in the company. The plan provided, of"Section
3. The commission to be given broad powers to convert
the
first, for the stabilization of employment and, secondly,
wheat into flour and (or) other forms of food, and to make free
distribution
for thereof
to destitute, suffering and jobless people through the
the relief of the unemployed. Because of unemployment
Red Cross
con- and (or) existing philanthropic and charitable organizations or
agencies
ditions in apparatus works of the company all employee
s, be- throughout the country. "Section 4. The commission to have power to
select its own chairman and to employ necessary clerks and
ginning Dec. 1, are paying 1% of wage or salary
assistants
into the and to use any available Governmen
t office space and facilities that may
unemployment pension fund. Such collections will
be made be needed for its work.
through the month of December and longer
"Section 5. A small appropriation for expenses, say $50,000,
if necessary. authorized.
should be
Employees of the various incandescent lamp works,
"Section G. The commission to be required to make a detailed report
about
ofits
8,000 in number, did not come under the
provisions of the operations to the Senate and Rouse at the December 1931 session and this
act to expire by limitation Jan. 1 1932."
plan as announced in June.
My purpose in suggesting that one member of the commission Fe experi"Stabilization of employment," explains Mr. Swope,
"is enced in milling and another in baking, is that from my corre pondence
much simpler in those departments where
I have learned that some of the millers have already expressed a willingness
the product has to
grind this wheat into flour at cost, and some large bakers have said
been standardized and where there is less
that
risk of obsoles- they would be willing to bake it into bread without profit. The advice
cence and deterioration. The product of the
assistance of two men of this character as members of the commission and
Incandescent I think, be invaluable.
would
Lamp Department is notably one of these. The
plan for a
The creation of such a commission would at once focus upon it all the
deguarantee of work under certain conditions is
offered as a mands for the conversion and distribution of the wheat and would relieve
result of the stabilization of production and
other already overworked departments of the Government of this new
and
employment in specific responsibility. Again, it is better
to impose the responsibility upon
the Incandescent Lamp Department. It is hoped
that the a temporary board, created for the purpose, which can devote its entite
plan may be continued from year to year, possibly
and attention to the emergency. The commission can make its distriwith modi- time
bution through the Red Cross and (or) other existing philanthropic
fications resulting from experience." With
and charregard to the itable organizations, and thereby reach, quickly
and effectively, those who
plan it is stated:
are in extreme need.
Under the conditions of the employment stabilizatio
Advantages of Temporary Board Explained.
n plan, a week's work
shall comprise the normal working hours per week
So much for the suggested legislation.
for each division, department, factory or activity as defined by its manager
Let us take up, first, the humanitarian aspects of the problem. There
and subject to change
by him, but in no case shall it be less than thirty
hours work in any calendar seems to be some difference of opinion about the number of unemployed
week, except as affected by deductions for holidays,
illness of the employee, In the country. The latest figures I have seen are those given out a few
or through fire, flood, strike or other extreme emergency.
Subject to such days ago by William Green, President of the American Federation of Labor,
terms, full payment will be made to employees for 30
hours' work in case who estimated that there are now 4,860.000 people out of work and who says
of employment for less than 30 hours in any calendar
that if the rate of increase shown during November continues more than
week.
Participation under the plan is optional and will become
7,000,000 people will be out of work by February 1932. Personally I think
effective
upon
acceptance of 60% of the eligible employees of each works
these figures are not far from the mark. My own correspondence shows
and by the
individual application of the employee who requests the
that the number of unemployed is constantly increasing. Mr. Green's
company to deduct
statement makes no reference to the number of dependents of the
1% of his or her weekly earnings and credit the amount
unemso deducted to
ployed, but if these are taken into consideration, and we assume the exsuch employee.
tremely low ratio of one dependent for each jobless person, we have now
The company reserves the right to transfer employees to
other work, approximately 10,000.000 people, a large
proposition, if not all, of whom
where the employee shall receive the prevailing wage for the
work, but not may be in imperative need before the Winter is over.
for less than the minimum hours guaranteed. This guarantee
expires Decem10,000,000
our
of
own
If
people
had
been
reduced to want or suffering beber 31 1931.
cause of some terrible cataclysm, like the Great War, or widespread pestiIncandescent lamp factories of the General Electric
Com- lence, or earthquakes, or floods, or fires, their tragic condition would stir
pany are located at Bridgeville, Pa., Buffalo, N. Y.,
consicence of the country to such an extent that the National
the heart
Cleve- and Stateand
Governments and private charity would respond overwhelmingly
land, 0., East Boston, Mass., Harrison, N. J., Newark,
N. j., and immediately to the situation. But because these 10.000,000 people
Niles, 0., Oakland, Calif., Providence, R. I., St.
Louis, Mo., are in sore distress from an undramatic, but equally tragic cause, in its
effects, their plight is not impressed upon the human mind and heart so
Warren, 0., and Youngstown, 0.
strikingly and vividly and,therefore, neither the dimensions not the exigency
of the problem is fully appreciated. After the Great War,the Congress appropriated many millions of dollars to succor the destitute and stricken
Distribution of Surplus Wheat by Relief Agencie
s Ad- people of various European nations. This was highly commendable, but
vocated—W. G. McAdoo, Former Secretary
should we be less considerate of those of our people whose sufferings may be
of the equally great before the Winter is
over Every consideration of humanity
Treasury, Recommends Plan in Letter to
Senator and justice demands that what belongs to the people should not be withheld
Capper—Believes 10,000,000 Persons Will Need
Aid. from them in their hour of extremity. I am frank to say that if the Government should hoard this wheat, in the face of such a situation, and if men,
An emergency relief commission for distribution of
surplus women and children should die in America this winter from want, it would
wheat now in the hands of the National Grain
Stabilization be an exhibition of heartlessness and callousness that could not possibly
Corp.,up to a maximum of 75,000,000 bushels, as a means
be defended. The problem is too big for private charity. Moreover, the
of contributions from that source are uncertain
and irregular. We must have
extending aid to "destitute, suffering and jobless
people," a definite quantity of food to deal with so that we may organize the relief
is recommended by W. G. McAdoo,former Secretary
of the and distribute it upon the basis of actual quantities.
Treasury, in a letter addressed to Senator Capper (Rep.),
Need of Immediate Action Is Stressed.
of Kansas. This is noted in the "United States Daily"
Of course,there is no suggestion that the wheat itself be distributed to the
of consumers.
The suggestion is that the emergency relief commission shall
Dec. 13, which in giving Mr. McAdoo's letter goes on
to say: convert it into flour and other forms of food, which can
be done with great
Pointing out that the Grain Stabilization Corp. has more than
bushels of surplus wheat on hand which, he said, is serving 100.000,000 dispatch and at the minimum of cost. Let me say, here, that the need for
no Purpose, Immediate action is imperative and that every day of delay increases
Senator Thomas (Dem.), of Oklahoma, a member of the
the
to consider the Capper resolution (S. J. Res 211), declared subcommittee suffering and distress and makes it less probable that the necessary effort
that this wheat can be organized in time to meet the problem successfully. The
should be made available for relief purposes. The capper
appropriaresolution would tion of 75,000.000 bushels of wheat will do more than anything else
authorize the distribution of wheat for relief purposes.
that
can possibly be done, except the appropriation of an equivalent amount of
Senator Thomas said he saw no objection to making
available the whole money, to save the situation.
amount held by the corporation if it should be necessary.
Let us consider, for a moment, the economic aspects. This wheat store
expressed the belief that 40,000.000 bushels would be more HOW8Ver, he
has been accumulated with public money for the purpose of removing
Distribution of the wheat should be under the charge than ample.
of
a
National from the market the surplus of production, with the expectation that the
relief agency, such as the Red Cross, the Oklahoma
Senator continued. price of wheat would be stabilized by equalizing as nearly as
possible, proThe wheat could be turned over to mills in exchange for flour
and this flour duction and consumption. So long as this wheat surplus
distributed by the relief agencies to those in need, he said.
overhangs the
inevitable
that
market,
price
the
is
of
it
wheat
will
be
depressed
to a greater
Senator Capper (Rep.),of Kansas,said he did not contend for
a
amount of wheat to be made available but rather that such as wasparticular extent than would otherwise be possible. It is obvious that a larger consumption
necessary
wheat
benefit
of
will
the economic situation, so far as wheat
should be obtainable. Re explained that he had thought most
of its would is concerned, and, to that extent, the producer or the
owner of wheat
3978
FINANCIAL CHRONICLE
their
will be benefited. Assuming that the 10,000,000 jobless people and
this
dependents are unable to buy and, therefore, cannot consume wheat,
vitalized
be
great and potential consuming power is destroyed. But if it can
conunder
now
wheat
the
surplus
of
by feeding it with 75,000,000 bushels
trol of the Farm Board, we increase consumption, not only without injuring
the wheat market, but by actually benefiting it. We remove one of the most
depressing influences upon the price of wheat by getting rid of the surplus
which overhangs the market.
Economic Benefits of Plan Given.
Suppose,for instance, that this 75.000,000 bushels of wheat were sent to
argue
China and given to the famine-stricken Chinese people. No one can
this
with reason, that the economic effect upon the wheat situation in
are
country would be otherwise than beneficial. If our own people who
the
unable to buy the wheat are made consumers of it, notwithstanding,
beneficial effect will be the same.
I, of course, feel that it is our imperative duty to relieve the suffering
s, whether
and distress of our own jobless fellow citizens and their dependent
humanthe economic effect is good or not, but, fortunately, in this case the
have a
itarian and economic reactions harmonize fully and we, therefore,
double reason for rendering this humane service.
the
While I am not, of course, in sympathy with every effort to increase
is obvious
demand for labor and to open new avenues for the unemployed, it
that appropriations for public works, however large, cannot, in the very
unemployed
nature of the case, meet the problem. There are thousands of
works
who cannot be relieved by this method, even though these public
a large
could be organized on a sufficient scale and require the labor of even
from
come
part of those who are in distress. Whatever mitigation can
public works or industrial demand is, of course, desirable.
action
Please allow me In conclusion, to emphasize the need of prompt
in Greater New York were members of the union. The union rate was raised
from $12 to $13.20 in August, 1929. Mr. Prial's decision established $12
as the union rate during the period in which complaints were filed.
which ended before the increased rate was set.
decision
"After a careful investigation and lengthy hearings," Mr. Priers
read, "the Comptroller finds that men who build wooden forms in subcarpenter
a
ways are doing carpentry work and are doing the work that
should do; he finds that the men who take down these wooden forms are
He
doing work other than carpentry work, laboring work, for instance.
also finds in a majority of cases the men who reset the wooden forms are
be
to
have
not doing carpentry work except in isolated cases which would
determined on the particular facts. The Comptroller further finds that
carbetween Oct. 1 1928 and Aug. 11929, the prevailing rate of wages for
penters in the city of New York was $12 a day.
affected
ng
firms
John F. Collins, attorney for a majority of the contracti
by the decision, said Mr. Friars order would be taken before the Appellate
Division on a writ of certiorari, adding that in his opinion the decision
for
was not in accord with the facts or the law. Frank Nevins, attorney
some other contractors, is also expected to appeal. The concerns against
which complaints were made on the ground that they did not pay carpenters' wages for carpenters' work are Patrick McGovern, Inc.; the Oakdale
Inc.;
Construction Co., Carleton Co., Inc.; W. G. T. Construction Co.,
Rosoff Subway Construction Co., Lyons & Slattery, Inc.; Clemente ConCo.
ion
Construct
Rocca
tracting Co., Inc., and the La
a day during
Under Mr. Prial's decision carpenters who worked for $6.40
rs for back
the period in controversy would be entitled to sue the contracto
The
intention.
the
union's
not
was
wages, but Mr. Hackenburg said this
reinimiving
establishment of the principle was its chief object, he asserted,
the possibility that any suits would be brought.
Gov. Kohler of Wisconsin Urges Work for Unemployed
Rather Than Gifts of Money.
Jobs for the unemployed, rather than gifts of money, is
the
the speediest solution of the nation's business problem in
a
In
in.
Wiscons
of
Kohler
J.
Walter
r
Governo
opinion of
himself
is
who
Kohler,
r
statement issued at Chicago, Governo
es
an employer, said that it is the responsibility of all industri e
part-tim
le
reasonab
or
e
full-tim
provide
and employers to
important
employment for their forces, as "this is even more
of deprestime
this
in
ly
profitab
business
a
g
than operatin
sion." Gov. Kohler stated:
jobs for
is to find
The best and most lasting service to the unemployed
on of public and
them. Regul arization of employment and the stimulati homes and busiof
private construction, maintenance, and modernization
results.
ness structures offer the most immediate hope for practical
more people at the
Many industries, not all, can undoubtedly take on
maintenance work or in
present time—if not in regular production, then in
preparations for resuming normal operations later on.
Wis., of which I am active
In the business of the Kohler Co. at Kohler,
nt and wages for our
head, we have for many years maintained employme through our policy
hed
full force of 4,000 men. This has been accomplis
es—for which purpose we
In slack times of accumulating heavy inventori
present depression so far
maintain large warehouses. We have during the
lly full-time.
avoided laying off men and have worked substantia becomes Imperatively
it
Not all businesses are alike, but in cases where
instead of laying off
possible
often
is
necessary to reduce production it
ce or improvement ofthe
maintenan
repair,
of
work
arbitrarily to shift men to
plant.
le it is far better to
In the event that a reduction of work is unavoidab
off part of the force and
effect a horizontal shortening of hours than to lay
completely deprive a number offamilies of their income.
conditions and
Overtime work is particularly undesirable under present spread out so
be
y
any excess hours of work, even if only temporar should
as to give a larger number of people employment.
society are so interThe interests of the worker, of management, and of
jobs affects everybody
related that the separation of men from their regular
no formula enabling all inand has most serious consequences. There is
full time basis. But a conscientious
dustries to operate on a continuous
of its applicability, as
study of what is being done in other industries and
often yield surprising
well as a sincere willingness to try new plans, will
results.
n
the tendency in some
is
Among the tragic results of serious depressio
of continuous effort and
people, if long out of work, to become incapable
practically unemployable.
then, is based on the good old axiom
My viewpoint on unemployment,
s.
of helping others to help themselve
than givers, though, of course, for the
My appeal is to employers rather
well.
immediate present those are necessary as
for the unemployed, but the many
Not only must industry provide Jobs
must resume their normal standards
people who are able to make purchases
was restored to normal and the chanof living and expenditures. If buying
n would be quite promptly stimunels of trade thus opened up, productio
ent in industrial employment.
lated, bringing about a vast improvem
ment problem, we must not overlook
In solving a solution ofour unemploy
people out of work. Therefore, in
the rural sections. They also have
that the needs of people
organizing for unemployment relief, it is important
due consideration, particularly because it
in the country districts, be given
ly in rural neighborIs likely to be more difficult to provide work immediate
hoods than in the cities.
ilders of
Subway Carpenters Win Fight on Pay—Bu
New York
Craft,
for
Rate
Full
Receive
Forms Must
City Comptroller's Office Rules.
ation
After 15 months of public hearings and investig
decision
formal
a
Prial
made
J.
Frank
ller
Comptro
Deputy
wooden
Dec. 10 that men employed on city contracts to build
paid the
forms for concrete were carpenters and should be
ing
prevailing rate of wages for carpenters, thus eliminatat a
men
the contention that they should be paid as handy " which
"Times
lower scale. This is noted in the New York
also said:
hailed the
ed the carpenters
Frederick L. Hackenburg, who represent
important victories labor has won in recent
decision as one of the most
be to establish $13.20 a day as the prevailing
years. He said its effect would
s
that about 30,000 of the 38,000 carpenter
adding
s,
carpenter
rate for union
[VOL. 131.
Report of Committee of New York Stock Exchange
Dealing With Secondary Distribution of Listed
Securities—Action Endorsed by Brokers.
Reference was made in these columns Dec. 6, page 3810,
to the action of the Governing Committee of the New York
Stock Exchange in adopting the report of the special committee of the Exchange dealing with the secondary distribution of listed securities. In indicating the attitude of brokers toward the move, it was stated in the New York "Times"
of Dec. 14 that coming at a time when commission business
is at low ebb, the action of' the Exchange in authorizing
member firms to engage in the secondary distribution of
listed securities was welcomed by brokerage houses generally. It is noted that the Exchange has created a special
committee with power to permit member firms to participate
in such distribution where "It is not against the interest of
the Exchange to offer such securities off the floor of the
Exchange publicly, by advertisement or otherwise." The
full report of the special committee on Secondary Distribution follows:
On Oct. 15 1930 a special committee of the Conference Committee was
listed
appointed to consider the problem of the secondary distribution of
securities by member firms.
This committee has held several meetings and has considered in particular the work done on the same subject by a special committee appointed
Feb. 13 1924, and has come to certain definite conclusions and recommendations which are the subject matter of this report.
In recent years there has been a tremendous growth in the tendency
of American investors to purchase for investment bonds, and in particular
with this develstocks, listed on the New York Stock Exchange. Coincident
disopment, there has been a wide extension of the machinery of security
rules and regulatribution through the medium of security salesmen. The
conin
salesmen
tions under which commissions may be paid to security
nection with the distribution of securities of original issue are well defined
and require no comment by this committee.
However, when the situation that arises in connection with the secondary
of
distribution of securities is considered it is found that a certain degree
confusion exists.
As a result of the recommendations of the committee of Feb. 13 1924,
on
there was incorporated in the rules adopted pursuant to the Constituti
the following clause:
on the sale of listed
"Members'may allow to security salesmen a commission of
original Issue, prostocks which are owned by said members and which are notshall
have found upon
vided that the Committee on Quotations and Commissions
of the Exchange
interest
the
the application of any member that it is not against
advertisement
to offer any such stocks off the Floor of the Exchange publicly by
such
finding."
changed
or otherwise and shall not have
the Committee
Your committee has found that for reasons of expediency
extremely reluctant
on Quotations and Commissions has in the past been
rule, and, in fact,
to act under the power conferred upon them by this
been granted to
the number of instances in which such authority has
statement that the rule has
members is so insignificant to warrant the
virtually been inoperative.
desirability of interpretSince the time when this rule was adopted, the
constantly increasing
ing it liberally from time to time has assumed
Street as a whole.
importance for member houses and for the
not subject to our rules are
In the first place, non-members who are
distribution of listed securities,
able to pay commissions on the secondary
business undertakings which
and are thus able to embark on perfectly sound
members are prohibited from
under the present interpretation of our rules
doing.
accumulated blocks of securities find
Secondly, member firms who have
redistribute these securities
themselves in a position where they cannot
ons, and they may thus be forced
through their own distributing organizati
the medium of options to members
to attempt redistribution either through
manner likely to produce lees satisor non-members, or otherwise, in a
on than the more obvious method
factory results in the matter of distributi
of paying reasonable commissions.
ion of issue business in the hands
Thirdly, with the increasing concentrat
distributor who is a member of the
of a few big groups, the independent
enough of such new business
Exchange finds great difficulty in securing
expenses of his distributing organizaon a satisfactory basis to cover the
be able to embark on operations
tion. Accordingly, he would frequently
on of great advantage to himself, to
In the nature of secondary distributi
DEC. 20 1m0.]
FINANCIAL CHRONICLE
3979
his clientele, and to the Street as a whole, but finds himself unable to enter small banks in the interior, were thought
to have served as the bases for
this field under the existing interpretation of our rules.
the rumors which have circulated in Wall Street.
It is felt that the situation is so important and will involve so much
This action of the Exchange follows recent efforts to check the series of
detail work as to warrant the delegation of final authority in regard to false and malicious reports which had been
spread through the financial
questions of secondary distribution to a special gammittee.
section about stocks believed in some quarters to be under manipulation
It is recommended that this committee be made up of two members of for the decline by bear operators. The
Stock Exchange never officially
the Committee on Quotations and Commissions, two members of the Com- admitted that investigations were under way, but
persons in close touch
mittee on Stock List, and one members of the Committee on Business with the situation indicated that the inquiries
were very reaL Several
Conduct.
members had moderated their operations as a result of the inquiries, it
The reason for recommending that the special committee be made up in was said.
this manner flows from the following considerations: The Committee on
In addition, during the period when there were failures of Stock Exchange
Quotations and Commissions has a vast fund of experience and of knowledge member firms, rumors concerning other firms
were spread. This was
having to do with all sorts of distributing schemes and their possible manifestly not in accord with the principles of fair
and equitable business
conflict with commission laws; the Committee on Stock List has a fund conduct sought by the Exchange, and it is felt
that recurrence of them
of information in regard to listed companies and their securities, and the within the past three days has led to
the request from the committee.
Committee on Business Conduct has at times pertinent information in regard
Previous reference to the efforts of the Stock Exchange
to security positions involving possible danger; and these three elements
it is felt should be represented in a committee charged with such an to check rumors affecting members appeared in
these colimportant and specialized function.
It is further recommended that steps be taken to amend the rules in umns Oct. 11, page 2319, and Nov. 23, page 3302.
order that the authority now vested in the Committee on Quotations and
Commissions in regard to commissions to security salesmen on listed
Dues of Members of New York Stock Exchange Next
stocks not of original issue may be transferred to a special committee conYear $1,000—Reported Increase of $200.
stituted as indicated above; and at the same time that the scope of that
rule be broadened and modified in the following manner:
Under action taken by the Governing Committee of the
Change Section 7 of Chapter XVI of the rules so as to read as follows:
New York Stock Exchange, the quarterly dues of members,
"See.7. Members may allow to security salesmen a commission on sales of unlisted
securities, and on sales of listed bonds owned by the employer.
payable Jan. 1 next, will be $250 each, at the rate of $1,000
"Members may allow to security salesmen a commission on the sale of listed securities which are owned by said members when such Securities have been purchased a year. It was stated in the New York "World" of Dec. 14
directly from the company by said member or his firm, either alone or acting Jointly
that although the Stock Exchange operates as a "club" and
with other members or non-members.
"Members may allow to security salesmen a commission on the Sale of listed
always give out its dues of members, it is reported
securities acquired in any manner other than by purchase directly from the com- does not
pany. provided the members paying such commission shall have fully disclosed all the dues last year were $800 each. The paper from which
the circumstances 10 connection with such transaction to the Special Committee
on Secondary Distribution and such committee shall have determined that it is not we quote added:
against the interest of the Exchange to offer such securities off the Floor of the
At present there are 1,349 members of .the Stock Exchange, and the
Exchange publicly by advertisement or otherwise, and shall not have changed such
determination.
$1,000 assessment will raise $1,349,000 toward the expense of running the
"In all cases where commissions are allowed to security salesmen, members Exchange. The rest of the funds are
obtained through fees for listing of
may allow similar 001311311.981003 to such other employees in their offices as may be
stocks and for transfer of seats.
approved by the Committee on Quotations and Commissions."
Expenses of running the Exchange are unofficially estimated at between
It is further recommended that there be delegated to said special com- $5,000,000 and $7,500,000 a year. Subsidiary
corporations, such as the
mittee authority over the distribution of listed securities by Hated comStock Quotation Co., and the Stock Clearing Corp., supply part of this.
panies or their subsidiaries, and this merely in order that the questions
The lower fees charged during this year were due to an unusually large
of secondary distribution should all be concentrated in one committee, amount of cash received from listings of stock during 1929.
The fee for
there being at present no body of crystallized thought in your committee listing General Motors new stock alone is
understood to have netted the
as to how this particular phase of the problem had best be approached.
Exchange $400,000, while scores of other large issues were listed.
Your committee feels, as already stated, that it is highly desirable
During 1930 the fees for listing new stocks dropped off sharply, as an
to adopt a somewhat more liberal attitude in the matter of the secondary unusually small number made their appearance.
On the other hand, the
distribution of listed securities, and the recommendations incorporated Exchange received a large
amount due to transfer of memberships. Each
above have been designed in order to bring this about.
'new member must pay an initiation fee of $4,000, and this year the amount
However, it is desired to record the view of the committee that the
exceptionally large.
greatest care should be taken by the special committee on Secondary Dis- was
At present the Exchange and its sulialdiary corporations employ more
tribution, the creation of which is recommended, both in regard to plans
than 2,500 persons, the largest number on record. The number of emof secondary distribution and in particular in regard to the specific stocks
which are the subject of such plans, in order that the interests of the ployees is even greater than during the panic period of 1929, and although
the staff is not so greatly rushed now as then, governors have shown no
public and of member firms may be properly safeguarded and protected.
It is felt that, beyond this general statement of principle, it would be indication that they will reduce the number of persons on the payroll.
unwise to hamper the new committee in its operations by an attempt to
The notice of the action of the Governing Committee,
deal in any way with the details of the problems which will confront them.
Your committee has discussed informally the question of the payment contained in the weekly bulletin of the Exchange, dated
of commissions to bond salesmen on stock business originating with them; Dec. 13, was as below:
but it was the sense of your committee that this was a problem that
The following was adopted by the Governing Committee:
concerned primarily the Committee on Quotations and Commissions, and
"That the Governing Committee determines that the dues payable by
should be referred back to them for such consideration as they deemed the members of the Exchange on Jan. 1 1931 be $250 each, and that said
advisable.
amount shall constitute a contribution by members towards the current
All of which is respectfully submitted.
expenses of the Exchange, in accordance with Section 1, Article XIII of
FRANK ALTSCHUL, Chairman,
the Constitution, which reads as follows:
WILLIAM V. C. RUXTON,
"See. L The dues payable by a member of the Exchange in each year,
CHARLES S. SARGENT,
exclusive of fines and of contributions under Article XXII of the ConstituE. H. H. SIMMONS,
tion, shall not exceed one thousand dollars a year, payable in advance in
ERASTUS T. TEFFT.
quarterly installments on Jan. 1, April 1, July 1, and Oct. 1. The amount
Dated, Nov. 14 1030.
of each installment shall be determined by the Governing Committee at
least 15 days before the date on which the same is payable.
"The dues for each quarter may be divided by the Governing Committee
Members of New York Stock Exchange Calls on Members into two parts, one of which shall constitute the member's contribution
For Telegraphic Communications Relating to to the current expenses of the Exchange for the quarter, as estimated by
Committee, and the other of which shall constitute the
Financial Condition of Members or Financial the Governing
member's contribution for the quarter towards the capital investment of
Institutions.
the Exchange, which shall include advances to its subsidiaries to cover
Under date of Dec. 12, the following notice was sent to capital expenditures."
(Bills for dues will be rendered in the usual manner on or after
members of the New York Stock Exchange by the Commit- Jan. 1 1931.)
tee on Business Conduct:
NEW YORK STOCK EXCHANGE.
Committee on Business Conduct,
New York, Dec. 12 1930.
Exchange:
To Members of the
Referring to the circular issued by the Secretary of the Exchange under
date of Dec. 1 1920, reading as follows:
"I am instructed by the Committee on Business Conduct to
notify you to keep on file for at least two weeks all communications emit and received over private wires, as the Committee may
wish to inspect them,"
the Committee on Business Conduct now requests all New York City members to please send to it by noon to-morrow, Dec. 13 1930, all telegraphic
communications relating in any way to the financial condition of
members
of the Exchange or financial institutions sent or received by them yesterday
or to-day. Out-of-town members are to submit the Jame information by
Thursday, Dec. 18 1930.
A reply is desired from every recipient of this communication.
ASHBEL GREEN, Secretary.
With reference to the above, the New York "Journal of
Commerce" of Dec. 13 said:
Financial observers were yesterday of the opinion that
trace the source of many of the bearish reports relating to
financial institutions at this time. The suspension of the
States, together with the recent decline in stock prices
it is desired to
the condition of
Bank of United
and failures of
Robert J. Fischer Again Elected Chairman of Chicago
Association of Stock Exchange Firms—Election of
Other Officers.
For the third consecutive term, Robert J. Fischer was
elected Chairman of the Chicago Association of Stock Exchange Firms, on Dec. 5. Other officers elected were William F. Burrows, Jr., Vice-Chairman; Joseph A. Rushton,
Treasurer, and Sidney L. Parry, Secretary. M. Rushton has
been Treasurer of the organization since it was started in
1920, and this is Mr. Parry's third term as Secretary.
The election of officers followed the annual meeting of
the Association, at which Mr. Fischer, in his report, stressed
the importance of the Association's development of the
Educational Institute. "The Institute has grown from an
enrollment of 250 in 1928 to 750," he said. Mr. Fischer
also announced the membership of the Association as 72,
compared with 59 a year ago. Governors of the Association
elected Dec. 5 are: Charles Swift, Allan S. Noyes, A. C.
Baur, Arthur F. Lindly, and William F. Burrows, Jr. All
are newly elected except Mr. Burrows, who is re-elected.
3980
FINANCIAL CHRONICLE
[voL. 131.
ago to pay $575,000 to the Irv-
R.
financier, made some months
G. Lambrecht Elected President Detroit Mortgage ing
Trust Co. of this city as receiver for the failed brokerage
Bankers' Association.
Woolsey, in approving the
Itidhard G. Lambrecht, Lambrecht Kelly Co., was elected
President of the Detroit Mortgage Bankers' Association at
their meeting held Dec. 11. Other officers elected were:
Vice-President, Louis H. Charbonneau, Assistant Vice-President Union Guardian Trust Co.; Secretary-Treasurer, William C. Oddy, Secretary-Treasurer French Mortgage & Bond
Co.; members of the board of governors, Arthur L. Malott,
Vice-President Union Guardian Trust Co.; E. B. Tyrrell,
Secretary Society for Savings; Joseph A. Brandt, VicePresident Fidelity Trust Co., and Walter C. Brandon, President Bankers' Trust Co.
Auburn Shorts Trapped, But No Corner Is Seen—Auto
Stock Closes at 112, Up 13 Points, After Going to
4—Rumors Abound.
1193
The following is from the New York "Herald Tribune" of
Dec. 19:
house of Woody & Co. Judge
offer, explained that the permission was granted "without
prejudice to any right" of trustees in bankruptcy to bring
suit against the Bankers Trust Co.
The trustees, it was explained, may bring suit against the
Bankers Trust Co. as tthe result of a deposit of $2,000,000 by
Harold Russell Ryder to his own personal account of checks
drawn to the order of Woody & Co. The New York "Times"
of Dec. 11 from which the above information is obtained,
continuing, said:
In addition to paying $575,000, Bailey, who is said to have been a preferred creditor of the company, has agreed to transfer to the receiver his
interest in a co-operative apartment at 720 Park Avenue, which is expected to make his payments total $850,000 in value. This sum, Judge
Woolsey stipulated, should be credited against any amount recoverable.
The claim of the trustees against the bank, it was explained, may be
based on Ryder's deposit of twenty-three checks to his personal account.
The cheeks, it was said, were issued between December 1929, and June
1930, by the brokerage house of Gilchrist, Bliss & Co., through which
Woody & Co. cleared many of their transactions.
A trap was sprung in Auburn Auto common on the New York Stock ExWe last referred to the affairs of Woody & Co., which
change yesterday and reckless shorts suffered heavy losses as the general
last, in our issue of Oct. 18, page 2479.
stock market continued its rise. Although the advance in Auburn Auto was failed June 19
sensational, the stock market as a whole moved upward at a more moderate
tempo than during the excited Wednesday session.
& Mitchell, Inc., Syracuse, N. Y., InvestRumors abounded that Auburn was"cornered," but the New York Stock Howell, Usher
ment Brokers, Enjoined by Supreme Court.
Exchange sent out no questionnaire last night, the usual procedure in the
ease of a corner. It was conceded in informed quarters that the issue was
The investment brokerage firm of Howell, Usher & Mitnot actually "cornered," but there was no doubt that shorts were in a very
chell, Inc., of Syracuse, said to be one of the largest firms
tight situation.
Last Corner in 1924.
of its kind In Central New York, dealing principally in
The last corner to be engineered on the Stock Exchange was in 1924, when
on Dec. 11 was enjoined from furPiggiy Wiggly common was stricken from the list. All the issue had been Investment trust Issues,
bought up by the management, and no stock was available for the shorts. ther business by order of the Supreme Court, according to
In 1927 a technical corner was brought about in Wheeling and Lake Erie
been advices by the Associated Press from Syracuse on the same
common,and in 1928 it was thought for a time that Radio common had
date, appearing in the New York "Herald Tribune" of
cornered.
Auburn Auto closed at 112, up 13 points for the day, but earlier in the Dec. 12.
made
60%
of
low
the
with
compares
session was up to 119X. This price
on Nov. 5, since which time the shorts in the issue have been playing a
& Co., Nashville,
losing game. The closing price last week was 84, so that at yesterday's Liabilities and Assets of Caldwell
Listed by Receivers.
close 28 points had been regained in three days and 51% points since the
low was established.
Receivers for Caldwell & Co., the Nashville, Term.,
The company has about 180,000 shares of capital stock outstanding,
leaving the total recovery in market valuation of the stock since November investment banking house which went into receivership last
5 at $9,292,500. The bull coup in the stock in recent weeks, according to month, filed an inventory before Judge John J. Gore in the
Wall Street's version of the story, was engineered by E. L. Cord, President
Federal Court at Nashville on Monday of this week, Dec.
of the company, and associates.
Shorts Scattered.
15, in which liabilities were listed at $39,589,656.02, with
No particular group of shorts was pinched in the squeeze,it was indicated assets, at book value, totaling the same amount, according
yesterday in sources close to the buying side of the stock, the bears being
to Nashville advices by the Associated Press on that date.
scattered throughout the financial district. It was pointed out that no
experienced market operator would go short heavily in an issue of this The dispatch, as printed in the New York "Times" went
type, in which there is a very small floating supply.
on to say:
While the New York Stock Exchange did not launch a special inquiry into
Caldwell & Co. wont into Federal receivership Nov. 13 and the inventory
comthe Auburn Auto situation, it was presumed that the business conduct
Is a report of the company's condition as of that date.
mittee was pursuing its usual policy of keeping informed on all unusual
"This report," the receivers said, "merely reflects the condition of
situations. Turnover in the issue totaled 50,900 shares, about 33% of all
Caldwell & Co. as shown by its books and does not purport to be and is not
outstanding Auburn stock.
of the corporation. The assets
g. The high for last year was a statement of actual financial condition
The high for the stock this year was 263,
been of the company are listed as shown in the report at their book value as they
514,established on Sept. 181929. For several years Auburn Auto has
listed.
likewise
there appear. The liabilities are
known as an exceedingly volatile issue, and it has only been in recent months
"Your receivers have not attempted to appraise the actual value of any
that shorts have hammered it with impunity. Most of the Auburn stock of the
properties of the company. Such a task would require an expendiIs reputed to be under the control of the Cord Corp., an affiliated organizature of a considerable sum of money and perhaps much time, dependent
tion.
upon the completeness ofsuch an investigation and appraisement.
"Whether or not this is to be done and by whom and under what cirCo.,
8c
Firm
of
Bros.
Philadelphia
Smith
of
Smith
Donald J.
cumstances is deemed to be a matter of consideration of your honor."
Expelled from Philadelphia Stock Exchange.
Assets were listed as follows;
$67,552.43
Announcement was made on Dec. 18 by Frank L. New- Cash in banks
381,942.44
Notes receivable
630,027.88
burger, President of the Philadelphia Stock Exchange, Accounts receivable
81,500.44
that Donald J. Smith of the investment banking firm of Due from officers and employees
137,128.20
subject to repurchase
Smith Bros. & Co. of Philadelphia, now in receivership, Securities
10,754,174.00
Securities owned
609,127.99
has been expelled from the Philadelphia Stock Exchange, Securities loaned to employees and others
which
in and advances to controlled and affiliated
a
Journal",
Investments
according to the "Philadelphi Finance
22,808,962.38
companies
went on to say:
Bank of Tennessee (a subsidiary now in
& Assets pledged with
2,036,752.73
The substance of charges and specifications was that Smith Bros.
receivership)
1,484,548.34
Co. admitted as a limited partner to their firm the corporation known Other assets
the
for
Corp.
without
opportunity
affording
597,939.19
as the Equitable Investing
Fixed assets
effective,
became
before
the
considered
same
be
to
proposed arrangement
$39,589,656.02
Total
and by permitting the Equitable Investing Corp. to continue as a limited
could
The liabilities are:
partner after notification to Smith Bros. & Co. that no corporation
$2,195.00
Bank over-drafts
become a member of a Philadelphia Stock Exchange firm.
8,220,371.00
under
payable
were
Smith
Notes
preferred
Mr.
against
Charges and specifications
3,884,886.00
and others
Section 2 of Article XXV, and Section 4 of Article XVIII, and Section Due to municipalities
1,311,885.00
Ex- Due to brokers (Kidder, Peabody & Co.)
7, of Article XXIII, of the Constitution of the Philadelphia Stock
3,064,356.00
of
Balance due on purchase of securities
change. Action was taken on the charges at the regular meeting
1,605,532.00
Other liabilities
the governing committee held yesterday (Dec. 17).
514,000.00
The firm of Smith Bros. & Co. was suspended from the Philadelphia Bonded indebtedness
43,084.00
receivers Deferred payments on real estate
and New York Curb Exchanges for insolvency on Nov. 13 and
1,230.00
credit
Deferred
14.
court
Federal
Nov.
the
in
appointed
were
300,000.00
Reserve for contingencies
appeared
2,000,000.00
Our last reference to the affairs of this firm
Capital stock
18,642,142.93
Surplus
"Chronicle" of Dec. 6, page 3643.
in the
Woody & Co. Failure—Frank Bailey, Brooklyn Financier, to Pay $575,000 to Receiver—Court Says
Decision Does Not Affect Action Over $2,000,000
Deposits by Harold Russell Ryder.
States
On Dec. 10 Judge John M. Woolsey in the United
Brooklyn
District Court approved the offer of Frank Bailey,
$39,589,656.02
Grand total
Chase
Notes listed as payable to banks on secured demand notes included
National Bank, New York, $325,146; Chase National Bank, $50.000:
Chemical and Trust, $100,000.
inventory
Under advances to controlled and affiliated companies the
Inc., the
listed a note of $500,000 as receivable from Southern Publishers,
Inc., and
Appeal,
Commercial
holding company for stock of the Memphis
inventory set
the Knoxville Journal, Inc. As collateral securing this, the
shares of Knoxout $500,000 of Knoxville Journal 631% bonds and 5.000
DEC. 20 1930.]
FINANCIAL CHRONICLE
vile Journal common stock, endorsed by Colonel Luke Lea and Rogers
Caldwell.
Both the Memphis Commercial Appeal, Inc., and the Knoxville Journal,
Inc.,are in receivership,and receivership action is pending against Southern
Publishers, Inc.
The Tennessee Publishing Co.,publishers of the Navhville"Tennesseean"
and Evening "Tennesseean," in an answer filed in Chancery Court late
to-day (Dec. 15) asked dismissal of suit filed by the Minnesota & Ontario
Paper Co. seeking the appointment of a receiver.
The answer, signed by Colonel Lea, President of the Tennessee Publishing Co., said that a receiver is not necessary and alleges that the paper
company is trying to gain control of the Tennesseean papers as well as the
"Commercial Appeal" and the "Evening Appeal" at Memphis and the
"Journal" at Knoxville.
Our last reference to the affairs of Caldwell & Co. appeared
in our issue of Dec. 6, page 3652.
3981
H. R. Breuer, member of Gorman Kayser & Co., has been suspended by
San Francisco Curb Exchange under provisions of a like section.
A. W. Gorman, of Gorman, Kayser & Co., said;
"After we received notice of suspension of Gorman, Kayser & Co.from
the San Francisco Stock Exchange and Curb Exchange. a petition was
filed in Superior Court of San Francisco for appointment of a receiver and
William E. Hills has been named for that position. Although the petition
includes request for dissolution and accounting, there has been and is
absolutely no dissension within the partnership.
"When liquidated, the firm's assets will, in my judgment. prove considerably in excess of its liabilities, and it appears probable that there
will be a minimum delay for customers and other creditors. Present liquid
assets, however, would not suffice for all demand liabilities should the firm
be asked to meet all those liabilities at about the same time.
"Such a demand might occur under present conditions and for this reason
we felt it best to apply for a receiver, that he may conserve the assets and
convert them as rapidly as possible into liquid form."
Col. Luke Lea Fights Paper Receivership for Southern Ashley 0. Jones Sr., Expelled By Chicago Board of
Newspapers — Charges Paper Manufacturers With
Trade—John J. Carmody Suspended for Year.
Effort to Gain Control of Tennessee Journals.
From the New York "Evening Post" we quote the followDenying allegations of mismanagement, the Southern ing from Chicago Dec. 17:
Publishers, Inc., today sought the dismissal of a receiverDirectors of the Board of Trade to-day expelled Ashley 0. Jones Sr.,
ship application instituted by the Minnesota and Ontario and suspended Jonh J. Carmody for one year.
Both are charged with violation of the rule relating to trading systematicPaper Company, the Nashville Trust Company, and D. D. ally by members against orders or the position of customers.
Robertson, receiver for the Bank of Tennessee. Associated Press advices from Nashville, Tenn., Dec. 15, pub- Government of Saskatchewan Aids Banks on Wheat
lished in the New York "Times" in indicating this added.
Crop Advances.
A detailed answer, filed by Colonel Luke Lea, president, charged that
Estevan,
From
Sask,
the "Wall Street Journal" of Dec.
the paper company is seeking control of The Appeal papers at Memphis,
The Journal at Knoxville and The Tennessean papers at Nashville, all 19 reports the following:
headed by Colonel Lea.
The answer, which seeks to justify all financial transactions involving
The Southern Publishers, Inc.; The Memphis Commercial Appeal, Inc.,
and The Knoxville Journal, Inc., the stock of which it holds, was filed
before Chancellor James B. Newman as hearing on the receivership application opened.
Before the hearing opened Chancellor Newman read a telegram from
S. R. Morgan & Co. of Little Rock, which said that the company had
offered the receiver for the Bank of Tennessee $500,000 in cash for the
500 shares of Southern Publishers, Inc., stock, pledged to the bank by
Caldwell & Co.
W. E. Norvell Jr., attorney for Southern Publishers, Inc., suggested
to the Chancellor that the Little Rock Company had the impression that
The Southern Publishers, Inc., was in receivership.
The chancellor said he would take no official notice of the telegram.
That the Federal Government had come to the aid of the banks in guaranteeing them against loss on the 1930 wheat crop advances to the Wheat
Pools was stated at Midale by Honorable J. T. M. Anderson, Premier of
Saskatchewan. He expressed the opinion that, in all probability an announcement would be made in the near future by Premier Bennett in this
connection.
Federal Judge Woolsey yesterday named the Irving Trust Co. receiver
in equity for J. C. Brownstone & Co. of 84 Fifth Ave., a clothing concern
headed by Joseph C. Brownstone,one of the directors of the Bank of United
States. Although its assets of $2,000,000 exceed liabilities by $700.000,
the firm difficulties were laid to the fact that the bulk of its liquid assets
are on deposit with the Bank of United States.
The equity proceeding was instituted as a "friendly action" by Frederick
Lemberg, employed as a bookkeeper for the company, whose claims against
the firm total $4,000. This sum, he says, is due and unpaid. In his complaint Lomberg, a resident of Nutley, N. J., asserts that the present financial troubles of the defendant are the result of unsettled business conditions
and current unemployment.
J. C. Brownstone & Co. was formerly one of the leading manufacturers
of men's clothing in the city. Lately it had been conducting a retail trade
In clothing for men, women and children, buying and selling on credit.
Most of its transactions have been through the bank with which its President is affiliated. The mercantile establishment, it is understood, was
unable to weather the situation in the credit line after the Bank of United
States closed its doors.
The demand for a receiver was made with the consent of attorneys for
the company, Horwitz, Rosston & fort of 141 Broadway. Counsel for
the petitioner is M.Carl Levine, who occupies offices in the Bank of United
States Building at 535 Fifth Ave.
Curb exchanges Saturday (Dec. 13).
Los Angeles Brokerage Firm of G. F. Wolcott & Co.
Assign—Myron H. Wells Appointed Receiver.
The firm of G. F. Wolcott & Co., Los Angeles, Calif., a
member of Los Angeles Stock and Curb exchanges, closed
on Dec. 15 and filed a voluntary petition in bankruptcy,
according to Associated Press advices from Los Angeles on
Reference to the proceedings appeared in our issue of the same date. The company listed assets at $300,000, but
liabilities were not recorded, it was stated.
Dec. 13, page 3815.
The following additional information was contained in
Brownstone & Co. in Receivership—Head of Clothing advices to the "Wall Street Journal" on Dee. 16:
Judge William P. James sitting in the United State; District Court, has
Firm Bank of United States Director—Action
voluntary application for receivership for G. F. Wolcott & Co.
Called Friendly—Unable to Weather Situation granted
Myron H. Wells has been appointed receiver. Voluntary receivership
Created by Closure.
application was filed by G. F. Wolcott, as President and Harry G.Fairman
as Secretary of the company.
The following is from the New York "World" of Dec. 13:
Wolcott & Co. were suspended as members of the Los Angeles Stock and
San Francisco Brokerage Firm of Gorman, Kayser &
Co. in Receivership—San Francisco Stock and
Curb Exchanges Suspend House.
The brokerage firm of Gorman, Kayser & Co., with head
office in San Francisco and branches in eight other California
cities, went into receivership on Dec. 16, according to San
Francisco advices by the Associated Press on that day,
which continuing said:
The receivership was sought by the firm when it was informed the San
Francisco Stock Exchange had decided to suspend the brokerage house.
The grounds for the Exchange's action was "that Gorman, Kayser & Co.
cannot continue in business with safety to its creditors and to the Exchange."
E.P. Kayser,one of the senior partners of the firm,said;"In our opinion
there is absolutely no question but every client will get every dollar coming
to him."
Subsequently, Dec. 17, San Francisco advices to the
"Wall Street Journal" contained the following additional
information:
The Governing Committee of the San Francisco Stock Exchange has
suspended Harry Ebner, and the firm of Gorman, Kayser & Co., under the
provisions of Section 2, Article 9 of the constitution on the grounds that
Gorman, Kayser & Co. cannot continue in business with safety to its
creditors or to the Exchange.
Hartford, Conn., Brokerage House of F. E. Kingston
& Co. Placed in Temporary Receivership.
The brokerage firm of F. E. Kingston & Co., of Hartford,
Conn., one of the largest houses of its kind in the State, was
placed in temporary receivership on Dec. 15 by Judge Dickinson, who named the Phoenix State Bank & Trust Co. of
Hartford as receiver. A hearing on the appointment of a
permanent receiver will be held Jan. 9. Hartford advices
on Dec. 15 to the New York "Herald Tribune," from which
the above information is obtained, continuing, said:
In seeking the appointment of the Phoenix State Bank & Trust Co. of
Hartford as the receivers to take over the affairs of the firm, John A. King,
Assistant Attorney-General, declared that while the Kingston house appeared
upon examination to be technically solvent, a substantial portion of its
assets were frozen and no liquid working capital was available with which
to meet its current obligations. It was therefore considered unsafe to
permit it to continue business, said Mr. King.
An examination of the books of the company over the week-end by agents
of the State Banking Department under direction of Lester E. Shippee,
State Banking Commissioner, indicated that the firm's assets amounted to
$800,000, of which a considerable part could not be readily turned into
cash. No exact figures could yet be obtained as to the liabilities, but it
was understood they were below this figure.
Officials of the firm declined to make any comment on the action, asserting that they had not been informed of the move of the banking
commmeinfiiromnerh.ad
eight branches in the larger cities of this State, with longestablished branch firms in Boston and Montreal and correspondents in
New York. Its New York representatives were Livingston & Co., a Stock
Exchange house at 111 Broadway. In Boston it was represented by F. E.
Kingston Co., while in Montreal it did business as F. E. Kingston & Co.,
Ltd. There were branches in New Haven, New London, Bridgeport, Waterbury, Meriden, Danbury, Middletown, and Willimantic.
The firm also promoted the Guardian Investment Trust of Hartford, the
portfolio of which the Attorney General's office declared was found intact.
the Connecticut Utilities Co. and the Connecticut Trading Co. also are
subsidiaries of the firm.
Intimations that all was not precisely satisfactory, Mr. Shippee said,
appeared about three weeks ago, when the ticker service to the firm was
withdrawn either upon application of the house or because of unpaid bills.
Whatever the reason, the authorities considered it sufficient cause for
making an investigation.
It was found that the firm was unable to make deliveries to customers
and had not sufficient cash to meet current obligations. The banking coin-
3982
FINANCIAL CHRONICLE
missioner said that under the circumstances he did not consider the house's
status safe from the investor's point of view, and decided to ask for the
receivership to protect the investors' funds.
Assets of Roberts 8,r Hall, Failed Cincinnati Brokerage
House, Totaled 1,305,264 as of Oct. 31—Liabilities
put at $2,538,907—New York Stock Exchange
Grants Walker P. Hall Extension of Time for the
Settlement of Creditors' Claims.
With reference to the affairs of the Cincinnati brokerage
firm of Roberts & Hall, Cincinnati, which failed in December 1929 (as.noted in our issue of Jan. 4 last, page 51),
Cincinnati advices to the "Wall Street Journal" on Dec. 10
reported that assets of the firm aggregated $1,305,264 on
Oct. 31 1930, according to a report by Graham P. Hunt, the
receiver, filed in the Court of Common Pleas at Cincinnati. Liabilities amounted to $2,538,907. The assets item
did not include accounts owed the receivership, totaling
approximately $500,000, on which action to collect has been
filed. A cash disbursement to general creditors of 33 1/3%
was paid some months ago.
According to the New York "Journal of Commerce" of
Dec. 11, extension of the time given Walker P. Hall, the
New York Stock Exchange member of the firm of Roberts &
Hall, for the settlement of creditors' claims, was granted
by the Governing Committee of the Excfhange Dec. 10. The
extension to Dec. 30 1931 was said in informed quarters, the
paper mentioned noted, to have been granted the firm,
which was suspended for insolvency Dec. 31 1929, to give it
a chance to make a fair settlement, which has been delayed
by business conditions.
Our last reference to the firm's affairs appeared in the
"Chronicle" of Sept. 13, page 1654.
Harriman 8c Co. not Included in New Firm Formed
Through Consolidation of Brown Brothers & Co.
and W. A. Harriman & Co. and Harriman Brothers
& Co.
Harriman Si Co., members of the New York Stock Exchange and New York Curb Exchange, have issued a state-
ment to the effect that they are in no way connected with the
firms included in the consolidation of Brown Brothers & Co.,
W. A. Harriman & Co., Inc., and Harriman Brothers &
Co., announced Dec. 11 and noted in our issue of Dec. 13,
page 3811. Harriman & Co. was organized in 1888 and
the present organization is composed of the following partners:
Henry W. Bull, Eliot Buffinton, Oliver Harriman, G. B.
Chipman, George F. Brennan, Christopher W. Karb, Wm.
G. Jones Jr. and Wm. J. Cunningham.
Form 131.
as of the preceding Friday. As of Oct. 17, the bank reported gross deposits
of $212,169.000, the highest total attained between the date of the "call"
of the Superintendent of Banks on Sept. 24 and the suspension a week ago.
On succeeding weeks the total declined steadily until only $182,318,000
was shown as of Dec. 5, the date of the last report prior to the closing.
On the basis of the available figures, the bank appears to have lost
more than $20,000,000 in deposits between Dec. 5 and Dec. 10. This
figure is not entirely accurate, however, as the earlier total represents
gross deposits and the figure announced yesterday is for net deposits.
The closing of the bank by the New York State Banking
Department was noted in these columns last week, page 3812.
As indicated on page 3814, the banks in the New York Clearing House Association announced that they would lend to
depositors of the Bank of the United States at 5% interest
up to 50% of their net balances. As to the arrangements
for these loans, we quote the following from the New York
"Journal of Commerce" of Dec. 17:
Under the plan for the issuance of loans by the Clearing House banks the
members of the Clearing House Committee will act as trustees holding pass
books, cashiers' checks and other evidences of deposit to be pledged as
collateral for the loan for the lending banks. A statement issued by the
Clearing House stated that the loans will be issued at six branches of the
Bank of United States, three of them in Manhattan, two In Brooklyn and
one in the Bronx. The mechanics for the allocation of loans among the
Clearing House banks have been completely worked out, it was stated
yesterday in informed quarters.
The statement issued by the Clearing House outlining the details for the
carrying out of loans on Bank of United States deposits follows:
"A depositor desiring a loan will apply at the branch of the Bank of
United States at which his account was maintained. At the time the
application is made the depositor will execute an assignment of his account
and Indicate the percentage of his net balance which he desires to borrow.
The borrower will also give a specimen of his signature on a form certifying to the amount of his net balance, which will be issued by- the Superintendent of Banks, who will also state that the signature thereon has been
compared with the signature card on file with the Bank of United States
and appears to be the genuine signature of the depositor.
Superintendent's Certificates.
"An original assignment will be delivered by the Superintendent of Banks
to those acting for the lending banks, together with an original of the certificate of the Superintendent of Banks stating the net amount to the depositor's credit. In the case of savings or special interest accounts, certified
and cashiers' checks, Stc., the depositor's pass-book, or other evidence of
the claim, will also be delivered to the representative of the lending banks.
"The Clearing House members will be represented by Mortimer N.
Buckner, Henry J. Cochran, Percy H. Johnston, Charles S. McCain and
Harry E. Ward, who at present constitute the Clearing House Committee,
but who will act in this matter as trustees for such members. All of the
obligations and security for the loans and all records in connection with the
transaction will be held by the trustees.
"The loans will be completed at six or more agencies of the trustees which,
at the outset, will be located at three designated branches of the Bank of
United States In Manhattan, two In Brooklyn and one In the Bronx. When
the papers affecting a particular application are in order the Superintendent
of Banks will deliver to the applicant an instrument on which will be
stamped a legend stating the date and place where he may complete the
loan, which will be one of the above-mentioned agencies: and when the
plan is in full operation the papers completed during each day will, at the
end thereof, be distributed among the agencies in conformity with the statements so made.
"The advances will be made at the agencies by handing each borrower a
draft drawn on the trustees for the amount of his note, which draft may
be cashed immediately at the issuing agency if the borrower so desires."
In stating that individual applications for loans held in
the bank totaled 5,500 on the first day (Dec. 16), the plan
Deposits of Bank of United States on Day of Suspension became operative, the "Journal of Commerce" noted that
Put at $161,000,000—Superintendent Broderick's loans will be advanced by next Monday (Dec. 22) and added:
Figures Indicate $20,000,000 Was Withdrawn in
Four Days Before Closing—Applications for Loans
by Depositors—Clearing House Statement—Suits
Against Bank.
Net deposits of the Bank of United States in New York
amounted to $161,000,000 at the time of its suspension
(Dec. 11), Joseph A. Broderick, State Superintendent of
Banks, announced on Dec. 17, it is noted in the New York
"Times" of Dec. 18,from which we also take the following:
This is the first official indication of the position of the closed bank and
reveals that substantial withdrawals had occurred in the four business days
preceding the suspension. While exactly comparable figures are not available, the bank reported gross deposits of $182,300,000 on Friday, Dec. 5,
four business days before it closed, and listed deposits of $203,000,000 as of
Sept. 24, the date of the last "call" of the Superintendent of Banking.
A total of 8,000 applications by depositors for loans were received at the
fifty-nine banking offices, compared with 5,550 on Tuesday (Dec. 17).the
first day of the plan's operation. The distribution of applications among
the various branches corresponded with the 'volume of deposits carried in
them. The highest number of applicants at any branch was 300, while the
smallest was 8.
Officials of the Banking Department reported that there was no excitement attendant upon the filing of applications, although at one or two
branches a steady stream of depositors flowed up to the cages.
Notices printed in foreign languages were posted at the branches of the
bank yesterday, in addition to the directions in English, instructing applicants how to apply for loans. Tne translation of the Instructions resulted In
an increased number of applications, but the volume continues in smaller
proportions than had been expected.
Business firms with cash held in the suspended bank, it was reported yesterday, in many cases have succeeded in employing other credit lines.
While credit stringency in the garment and textile Industries due to the tying
up of deposits was less than had been anticipated, creation of new contracts
has been reduced, it was reported.
Mostly from Individuals.
There was no report as to the volume of credit applied for, and the
Banking Superintendent declined to estimate the production of requests
from business firms whose quick assets are held in the bank. The largest
number of applications was received in branch offices located outside of the
business centers, reports yesterday indicated.
At the Thirty-ninth St. and Seventh Ave. office, which is in the center
of the garment industry zone, about 200 requests were received, which was
far below the number expected. Applications at the main office at Fifth
Ave.and Forty-sixth St., located in the retailing shopping district, were
heavy. No applications were received in the Wall St. branch, It was stated.
Units of Bank of United States and Bankus Corporation stock were
quoted yesterday at 2 bid, 4 asked. Sales at $2 per share, it was learned,
largely were made on special contracts under which the purchaser assumed
liability, should the stock be assessed in order to pay depositors.
out, would
The direct claim of the Banking Department, it was pointed
11, the date of closing.
continue to rest upon the holder of record as of Dec.
the event
in
would
his
contract,
of
virtue
The seller of the stock, however,in
of assessment hold his claim against the purchaser on the basis of which,
it was believed, a judgment could be secured.
The appointment on Dec. 15 of a receiver in equity for the
Ba,nkus Corporation and the City Financial Corporation are
noted elsewhere in our issue to-day. From the New York
"Times" of Dec. 18 we take the following:
Five employees of the Bank of United States were examined yesterday
afternoon in the offices of the State Bureau of Securities, Centre and Worth
Heavy Thrift Deposits.
promises made to investors in stock of the bank
The $161,000.000 net deposits announced yesterday was arrived at after Streets, regarding alleged
guaranteed against loss. by Richard J. Sherman, Deputy
deducting for exchanges and other items. Of the amount, substantially that they would be
General. He declined to disclose the results of the exmore than half is understood to represent special interest, or thrift accounts. Assistant Attorney
who appeared were J. Reese of the Prospect Avenue
These deposits were not drawn on as heavily, just prior to the closing, as amination. The five
(Brooklyn) branch, Frank Riley and Philip Becker of the Fordham branch.
were commercial accounts.
at Broadway and Sixty-eighth Street and John J.
The declining trend of deposits in the weeks immediately preceding its N. Nelson of the branch
Other employees are under subpoena and will be
suspension was revealed in the weekly figures reported to and printed in Lewis of 70 Wall Street.
the New York "Times" each Sunday. These figures are of gross deposits interrogated this afternoon.
DEC.
20 MO.]
FINANCIAL CHRONICLE
1.000 at Depositor's Meeting.
More than 1.000 Brooklyn depositors and stockholders of the Bank of
United States met last night at the Hopkinson Manor, 428 Hopkinson
Avenue, Brooklyn, and were told by City Court Justice Louis Goldstein,
Chairman of the Executive Committee of the Bank of United States Depositors' and Stockholders' Protective Association, that the closing of the
bank was due to "mismanagement."
Max D. Steuer, general counsel for the protective association, declared
that the despostors would get their money In full, "every dollar of it."
and that unless they received all the money they should, "the persons responsible for the loss will pay the penalty." The meeting adopted a resolution putting to State Superintendent of Banks Joseph A. Broderick a
series of 21 questions concerning individual loans by the b- nk, loans to
subsidiaries, salaries and bonuses, rents and other matters.
Both Justice Goldstein and Mr. Stotler referred to the possibility that
persons might have been misled by the name "Bank of United States"
into believing that it was backed by the Government, and Justice Goldstein said it was "regrettable and deplorable" that the State had allowed
use of this name.
More than 1,000 persons who could not get into the hall gathered in the
street outside and listened to impromptu speeches in Yiddish and English,
some of which opposed the attempt to bring the stockholders and depositors
together in one committee.
The "Times" in its Dec. 13 issue also said in part:
Rumors on Reopening.
Reports were current in financial circles that efforts to reopen the bank
after a speedy reorganization were being pushed by officers of the suspended
Institution. No concrete basis for these reports could be discovered and they
were received with reserve by informed bankers.
The suggestion was advanced, however, that, after the expiration of the
customary 10 days which must elapse before the Superintendent of Banks
can take steps to liquidate a suspended bank, arrangements might possibly
be made for one of the important downtown banks to take over the business
and property of the Bank of United States.
Under such a plan, it was thought, depositors of the suspended bank
would be guaranteed an immediate specific credit, 50 or 60% of their
deposits, for example, with the understanding that upon the gradual
liquidation of the slow assets of the bank further payments would be made.
The idea of such an arrangement was put forward as a possible, but purely
hypothetical solution. No such plan is actually on foot, hankers said, since
it was still too early to make definite arrangements.
No decision has yet been reached, so far as can be learned, as to whether
stockholders of the Bank of United States will be assessed under the law
providing double liability for owners of bank shares. It was said that for
the past 20 years it has not been necessary in this State to assess stockholders of a suspended bank. Under the law as it exists at present, however,
the Superintendent of Banks is empowered to levy such an assessment at
once.
In the case of the Bank of United States an assessment, if it were found
necessary, could be as high as $25 a share, the par value of the stock, or a
total of $25.250,000 for the entire capital stock. The shares of the bank
are held by 23,000 persons.
In the case of an assessment, stockholders of record as of the date of
the bank's closing would be liable for payment. Any sales made subsequent
to the closing of the bank would not affect this liability. Since the announcement of the closing, transactions in shares of Bank of United States have
been numerous in the over-the-counter market. Bankers said yesterday
that these sales were made by holders who wished to assure themselves of
some price for their holdings in order to offset any possible assessment.
Quotations in the market of Bank of United States shares were unchanged
yesterday from the previous day at $3 bid,$7 asked.
Largest Bank to Suspend.
The Bank of United States was the largest bank in the United States ever
to suspend payments, and may possibly be the largest in the world that has
ever closed its doors. The institution at the time of its closing had approximately $160,000,000 in deposits, but a much larger figure than this was
reported in the last official statement of its condition.
Following is a complete statement of condition of the Bank of United
States as of Sept. 24 last, the date of the third quarter "call" of the
Superintendent of Banks:
Assets—
Cash in vaults and in banks
$31,862,515.78
Bonds and other investments
42.089.137.20
Call and collateral loans
48,410,749.69
Discounts
123.237.234.93
Banking houses and equipment
5,230,765.93
receivable
Accrued interest
876,760.30
Customers'liability acceptances
2.356,778.45
$254,043,942.28
Liabilities—
Capital
$25,250,000.00
Surplus
Undivided Profits
10,000.000.007,156.375.16
Reserves for dividends, taxes, interest, &c
5,081,208.12
Unearned discount
. .95
Deposits
203.035,613.41
Liability as acceptor, endorser or maker on acceptances
and foreign bills
2,737,683.64
$254,043,942.28
. ..
stockholders
and
depositors
in
the
Bank
of United States were
While
forming committees in various parts of the city yesterday to protect their
interests, a suit was instituted by a stockholder with the object of compelling the directors of the suspended bank to pay any losses suffered by
depositors and relieving the stockholders of any such possible liability.
The suit was filed in the Westchester County Supreme Court at White
Plains by Max E. Block in his own behalf and, according to the petition,
in behalf of all the other stockholders in the Bank of United States.
Mr. Block asserts in the complaint that he owns 25 shares of stock in
this bank, purchased in 1929 and valued at $25 a share.
He charges that the directors failed. through negligence, to perform
their duty of employing honest, competent officers for the bank and
permitted the assets of the bank to be "stolen, wasted and squandered."
Mr. Block charges further that the directors "did not supervise the
investments of said bank, but, on the contrary, allowed the officers
of
said bank, namely, Bernard F. Marcus, President; 0. Stanley Mitchell,
Chairman of the board; Simon H. Kugel, Vice-Chairman of the board,
and Robert Adamson and Henry W. Pollack, Executive Vice-Presidents,
and other officers of the bank to manage the affairs thereof almost exclusively and in their individual interests, to the loss of the bank, and
to invest the funds of said bank and the money deposited with it without
control and as they pleased and Illegally, for their own individual profit,
and in securities in which they should not have invested, and particularly
securities in which such officers or corporations in which they were interested had a personal interest."
3983
Preparations for another suit affecting the Bank of United States were
announced yesterday by Jay Emanuel, an attorney representing several
stockholders and depositors. This suit, he said, was in behalf of Edna F.
Lane of 1 West 85th St., and would be filed in the City Court against
the hank, the Bankus Corp., and Superintendent of Banks Joseph
A.
Broderick as custodian of the bank's assets. The action, according to
the
complaint, is based on the alleged failure of bank officials to repurchase
ten shares of stock in the bank after their alleged promise to do so within
a year.
Efforts of depositors to protect their accounts culminated last night
in a mass meeting at the Rose Palace Hall, 86 Attorney St.. under
the
auspices of the Broome Street Boys Association. Harry H. Schlacht,
former Welfare Commissioner at Ellis Island and former President
of
the East Side Chamber of Commerce, was the principal speaker.
Mr.
Schlacht had been asked by a delegation of East Side housewives to be
chairman of a committee to protect their savings. According to Joseph
Rosenberg, President of the Broome Street Boys Association, 50 East
Side organizations, representing many thousands of bank depositors, participated in the meeting.
About 250 persons attended the meeting. Hyman J. Goldstein, a
lawyer, who presided, said that the meeting had been called "to clarify
a disgraceful situation," and declared that the Bank of United States and
other banks from which deposits recently had been withdrawn were absolutely solvent.
Mr. Schlacht also declared his confidence that the Bank of United
States would pay 100 cents on the dollar "within 48 or 72 hours." Mr.
Goldstein asked Mr.Schlacht to appoint a committee to restore confidence.
A committee which was said to represent 500 depositors in the bank,
with deposits totaling $4.000,000, asked Max D. Stelzer, attorney of
11 Broadway, late yesterday afternoon to represent them. Mr. Steuer
replied that he would let them know his decision by 4 p. m. Monday and
that if he represented them he would do so without charge. The committee included David Coleman of the Produce Exchange, Harry O.
Posner, Harry R. Samuels, Mrs. Minnie Stern, Ferdinand J. Sieghart
and Benjamin Teitelbaum. The committee read a statement to Mr.
Steuer, asking that"a most rigid and thorough investigation" be made.
A committee of depositors in the Brooklyn branches of the suspended
bank also was formed yesterday and will meet at 3 o'clock this afternoon
at the Brooklyn Chamber of Commerce. Alexander Berenson, temporary
Chairman, said that the committee represented 200 depositors with $1,000,000 in the branches. Israel H. Pershldn and Noah Feldman have
been designated temporarily as counsel for the committee.
Daniel W. Blumenthal, counsel for a group known as the "independent
stockholders and depositors committee of the Bank of United States,"
announced yesterday that Arthur Garfield Hays, representing a group
ofstockholders. would be associated with him in representing the committee.
Corporation Counsel Hilly said he was expediting the filing of the city's
claim for $1,500.000 deposits before the State Banking Department. In
addition to making a legal claim, Mr. Hilly said he was trying to establish the city as a preferred creditor in the institution. New York State
holds this position. If Mr. Hilly succeeds in obtaining that classification
for the city, he expects little delay in the return of the money.
We likewise take from the "Times" of Dec. 14 the following:
The organization ofanother committee,with officers of the Civic Business
Men's Association of Upper Broadway, many of whose members
were
depositors in the closed bank, was begun yesterday. Joab H. Banton,
former District Attorney, will represent it as counsel.
Mr. Banton said that its object would be to conserve the assets of the
bank and work in co-operation with it toward the speediest possible
settlement.
The New York Credit Men's Association has formed a committee,
headed by T. J. Whearty, President of the association, to aid business
men who have deposits tied up in the Bank of United States. Steps
will be taken to extend credit to business men and houses embarrassed
by the closing, it was said.
More than 100 depositors and stockholders in the closed bank, all of
them members of the Industrial Council of Cloak, Suit and Skirt Manufacturers, met yesterday and authorized William Klein, counsel for the
organization, to call a meeting of the various trade associations affected
by the bank's closing to make unified efforts to obtain for depositors
the full amounts they have tied up. A stockholders' protective committe
also was organized.
Mr. Klein said that there was no prospect of a credit stringency in the
industry and that other banks were co-operating with many concerns
affected.
Discourage Withdrawals.
A group of about 35 persons, several of them lawyers who Said they
represented more than 200 depositors with about $2,000,000 in Brooklyn
branches of the Bank of United States, formed a depositors' association
yesterday at the Brooklyn Chamber of Commerce. They selected an
executive committee with City Court Justice Louis Goldstein as Chairman
and appointed Israel H. Perskin chief counsel.
While depositors. in decreasing numbers, still were withdrawing their
funds from branches of the Public National Bank and the Manufacturers'
Trust Co., a committee headed by Harry H. Schlacht and representing
the East Side Depositors' Committee, went to work yesterday to restore
confidence. Twenty-five sub-committees consisting of about ten members
each went from branch to branch on the East Side, carrying their own
bank books with them and advising the depositors in line to leave their
money''where it would be safe."
Mr. Schlacht said that many organizations on the East Side were preparing to hold a large parade of depositors to show their confidence in
the banks.
Banks Accounts Being Shifted.
Bankers reported yesterday that their institutions had experienced a
noticeable shifting of accounts, traceable, it was thought, to some misapprehension on the part of the public as to the significance of the closing
of the Bank of United States. Certain depositors, it was said, had withdrawn some of their funds, while at the same time new accounts were
coming in rapidly, presumably representing transfers from other institutions. The net result of this movement, it was remarked, was a meaningless shifting of funds among the banks.
Several of the downtown banks, it was said, had taken steps to offset
this shifting of accounts. One method was to accept funds withdrawn
from a hank by a confused depositor and then to redeposit them
with
the bank from which they had been taken for the account of the institution
receiving the new account. Another method used by banks which
have
received large deposits drawn from other institutions was to delay presentation of the checks by which the accounts had been transferred.
These measures were taken as significant of the mutual confidence among
the banks. Leading bankers asseit that the closing of the Bank of
United
States represented a purely localized situation. For a time, it
is to be expected, bankers say, that the incident will cause a slight
unsettlement
among the clients of all banks, but the shifting of accounts is
looked upon
3984
FINANCIAL CHRONICLE
[VOL. 131.
The complaint declared that the City Financial Corp. held assets of
$36,326,270, consisting "largely in notes and accounts receivable and
including notes and accounts of subsidiary companies." Its liabilities were
declared to be $5,500,000, more than half of which represented indebtedness
to the complainant.
The Bankus Corp. was formed in Dec. 1928, with authorized capital of
.720,000 shares with a par value of $5 per share. The capital was increased
and, as set forth in the complaint, now totals 55.050,000, consisting of
1,010,000 shares. When the Bankus Corp. was formed the stock of the
Bank of United States had a par value of $25 and consisted of 360,000
shares. The number of shares was doubled and stockholders were asked to
"Times"
the
of
issue
surrender their right to the new shares in consideration for the exchange of
It was also stated in the Dec. 14
s each share held for one unit consisting of a share of Bank of United States
that, pending a settlement of the bank's affairs, depositor stock
and a share of Bankus Corp. stock.
will not be credited with interest on their accounts, since
This left 360,000 shares of Bank of United States stock which the Bankus
interons
suspensi
Corp.subscribed for at $25 per share, the funds being advanced by the City
under the procedure followed in banking,
is
step
Financial Corp. These shares acquired by the Bankus Corp. were again
This
closing.
of
time
the
at
cease
est payments
combined with Bankus Corp.stock and the units were exchanged for 720.000
of
resources
the
conserve
to
taken as a part of the measures
shares of City Financial Corp. stock, on the basis of two shares of City
Financial for each such unit.
the institution.
In turn the City Financial Corp. had acquired the Consolidated IndemFrom the Dec. 18 issue of the New York "Evening Post" nity & Insurance Co. through an exchange of shares. The City Financial
Corp. is said to have held the stocks of subsidiary real estate holding
we quote in part as follows:
intact, Joseph A. companies which had been formed to operate various properties throughThe book assets of the Bank of United States are all
BroderMr.
-day,
to
announced
out the city.
Broderick, State Superintendent of Banks,
value of the book
ick declined to comment, however, on the actual present
during there-materially
shrunk
have
to
reported
are
which
assets,SOME of
$1,000,000 of New York State Funds in Bank of United
cent depression.
attorney
Steuer,
States—Deposit Exceeded by Only Five Other
D.
Max
Mr. Broderick's statement was made after
of the Bank of
Institutions.
for the Depositors an Stockholders Protective Association
thatfunds ofthe bank
United States, had intimated in a speech to his clients
following Albany, N. Y., advices Dec. 15 are from
The
might be missing.
made last night that the the New York "Times":
Mr. Steuer reiterated to-day the statement he
from the September
assets of the bank were seriously imp iired. Readings
According to the New York State bulletin put out to-day by the Secreand liabilities balsworn report of the bank, the figures to show that assets
of State, the Bank of United States had on Nov. 29, $1,000,000 of
tary
surplus
0
$10,000.00
anced, he declared, that the $25,000,000 capital, the
State money on deposit.
and
correct
now
not
were
and the undivided profits of more than $5.000.000
Only five other banks have a larger amount of State money. They are
since then. . . .
of Manhattan Trust Co., $2,200,000; Chase National Bank.
that if the report was true, the money had vanished
were missing, Mr. the Bank
assets
bank's
the
of
any
whether
When asked to-day
$1,370,000; Commerce National Bank Sz Trust Co.. $1.200,000; County
Trust Co., $2,000,000, and Empire Trust Co., $2,500.000.
Broderick made the following statement:
this institution for 15
"We have been in close and constant touch with
for
accounted
been
have
books,
the
by
months. The assets, as called for
T. W. Lamont of J. P. Morgan & Co. in Address Before
since this department has taken possession."
Justice Louis Goldstein,
Members of New York Stock Exchange Declares
Regarding a printed statement attributed to
Trust inquiry,that
who as Assistant District Attorney first opened the City
Banking Institutions of City Are Sound--Urges
to-day
learned
was
it
salaries,
large
unduly
Officers of the bank had received
larger
being
as
t
Departmen
Banking
Co-operation in Behalf of Unemployed.
the
at
regarded
that salaries are not
the Bank of the United
Exdhange, in
than those usually paid officers of banks as large as
to the
as not serious. Oil the contrary, a number of bankers referred
situati'n as having its elements of humor.
selling
for
or
bank
As yet no definite plans for reorganizing the closed
matured. Such
its property and business to another institution have been
the affairs of
steps, it is said, Ca nnot be formulated until a complete audit of
unlikely that
the Bank f United States has been made. In any lose it is
formulated
been
have
anyitannouncemert will be made until the plans
the announcecarefully, since it is felt that some disturbance resulted from
three other
ment of the proposed merger of the Bank of United States with
institutions when the plan failed finally to be carried out.
Addressing members of the New York Stock
the Governors' Room, on Dec. 15, Thomas W. Lamont, of
J. P. Morgan & Co., spoke of the efforts of business men
"trying to help correct the ills of overproduction, overbuying, overborrowing, and overspeculating, which prior
to October 1929 marked the last year or two of the country's
economic and business life." Taking occasion to refer to
of
the
ation
the
for
reorganiz
the suspension of the Bank of United States a week ago,
plan
new
Reports concerning a
themselves
Bank of the United States were referred to in the afternoon Mr. Lamont observed that people are asking
New York
the
Eagle"
of
"Daily
tic
Brooklyn
all
symptoma
at
the
are
19);
its
ills
(Dec.
"whether
y
papers, yesterda
banking community." Mr. Lamont went on to say:
with reference thereto said:
States.
Broderick Fends Questions.
presented to
When Mr. Broderick to-day was shown the list of questions
had no comment
the stockholders' meeting last night, he simply said that he
several pubto make. Mr. Broderick has made the same remark regarding
lished lists of questions when they were shown him.
merged
The Bank of United States and the Municipal Bank, which were
of the City
in the early spring of 1929, both lost money in the collapse
Trust Co. in February of that year.
Banking Superintendent Joseph
"You know as well as I that they are not. You know as well as I that
Under it, it was proposed that the State
d institution andBalnbridge the leading banking institutions of this city are sound, strong and a bulwark
A.Broderick. become President of the reorganize
Chairman
Wilson.
President
under
State
of
to the community. You know that they are prudently managed. You
Colby, attorney and Secretary
know that the Federal Reserve Bank of New York is a tower of strength
of the board of directors:
Chairman
and
States
Harry H. Scblacht, director of the Bank of United
and that the Association of Clearing House Banks is a tower of strength.
he already had made the
of the East Side depositors committee,said to-day
. . . You know that . . . our banking community is founded on
for
the
setup
y
satisfactor
a
provide
would
it
proposal to Colby and hoped
a rock and will not be shaken."
reorganization.
In urging the co-operation of members of the Exchange in
Both Non-Committal.
themselves in favor behalf of the unemployed, Mr. Lamont stated that "by
commit
would
however,
Broderick,
nor
Colby
Neither
;
of the plan, Mr. Colby said to-day
your contribution already of half a million dollars to the
proposal has not gone that far. Mr. Schlacht
"As a matter of fact, the
and asked me to look into the bank's
called on me at my home last nightto see whether I could do anything for work of helping unemployment you have made a great start
affairs on behalf of the depositors,
If I can. That is as far as it has gone. No In giving your answer." But, he added, "the needs are
them. I will be glad to help
was made to me, as, indeed, it could
offer of a chairmanship of the board
greater than ever." "The appeal is still urgent from Mr.
not."
Prosser's committee, whose fine slogan Is "Help the Man
Mr. Broderick said;
proposed
my
to
respect
With
plan.
such
"I have no knowledge of any
leaving any Job half finished."
of
habit
the
in
not
Who Wants to Work." Mr. Lamont's address follows:
am
I
Connection
The American people never do anything by halves. When things are
looking up we are not satisfied with a normal prosperity. We want to
City
and
have it on a constantly ascending scale. We become exalted and declare
Receiver Named for Bankus Corporation
that poverty can never touch us. When the picture changes we are never
Financial Corporation.
We insist that it shall be man-sized,
of the content with a baby depression.
demand that
The Bankus Corporation, the security affiliate
shall be thoroughgoing and complete. If the sun is shining we
hip on Dec. 15. it shall shine so strongly as to scorch us. If the clouds gather we accept
Bank of United States, passed into receivers
York "Journal of Com- nothing less than a gloom that is thicker than a London fog.
of depression
In its account of the action the New
Just now it so happens that we find ourselves in the midst
stated:
than some that
merce" of Dec. 16
and gloom. Our conditions to-day are probably no worse
reCo.,
Trust
Irving
the
appointed
the
But
Atlantic.
across
Federal Judge John W. Woolsey
have prevailed for several years past in countries
of the City Financial Corp., 99% of the
us small comfort to-day. Whether or not our community
affords
ceiver of the Bankus Corp. and
that
fact
Bankus Corp.
I haven't time to
is justified in the extent of its present discouragement
stock of which is held by the
brought by the Municipal Financial Corp.,
the American people,
Suit for receivership had been
argue. The point that I prefer to urge is this: that
a
was
creditor
plaintiff
the
that
asserting
another subsidiary, the petition
characteristic energy, have set to work to do all within their
amount of $643,000. and to the amount of with their
of the Bankus Corp. to the
Because brought by a power to improve the situation.
Corp.
Financial
City
the
of
emergency with
$2.776,015 in the case
Our fellow-citizens all over the land have risen to the
of a technical character to conserve the
business men
subsidiary, the suit was said to be
zeal and unselfishness. On every side you see our
splendid
assets of the Bankus Corp.
help correct the ills of overproduction, overbuying,
to
anticipated
been
trying
work,
at
hard
had
Corp.
Bankus
the
for
The appointment of a receiver
prior to October 1929, marked
been formed in Dec. 1928, to buy, hold overborrowing, and overspeculating, which,
life—the same
last week. The Bankus Corp. had
n law, the company is not the last year or two of the country's economic and business
corporatio
under
Operating
in the
and sell securities.
sort of overstimulation that has invariably marked similar periods
Department.
Banking
the
of
n
jurisdictio
the
under
business cycles of this country.
Millions.
com14
York
Over
Bank
New
Owes
This last week has been one of especial concern for the
of the Bank of United States de- munity, because of a bank suspension of considerable proportions. Even
The petition filed against the affiliates
Corp. total $50,045,521 and the though the institution in question has long been regarded with uneasiness,
dared that the assets of the Bankus
ills are at all
$6.204,998 of security holdings
nevertheless many people have asked themselves whether its
liabilities $21.000,000. It was declared that
States and Bankus Corp. stock.
know as well as
consist largely of units of Bank of United
symptomatic of the New York banking community. You
KohlL.
Francis
0.
$43,593,23
banking
leading
Securities of subsidiary companies totaled
not. You know as well as I that the
of Banks,stated that the I that they are
man,an attorney representing the Superintendent
sound, strong and a bulwark to the community.
are
city
this
of
institutions
an
amount
to
States
the Federal
Bankus Corp. is indebted to the Bank of United
You know that they are prudently managed. You know that
between $14,000,000 and $18,000,000.
DEC. 20 1930.]
FINANCIAL CHRONICLE
Reserve Bank of New York is a tower of strength. You know that the
association of Clearing House Banks is a powerful safeguard against trouble.
You know that, despite surface weaknesses which may still show themselves
here and there, our New York banking community is founded on a rock
and will not be shaken.
These ill times will pass, but meanwhile it will be of avail for us to
recall the sins of omission and of commission by which we have added to
our burdens, personal and collective. Experience is a fine thing, but only
when we profit by it. The trying experiences through which we are passing may ultimately be a fine thing for us—but only if we are wise
enough to take them to heart.
You have seen and will continue to see that the spirit of co-operation
is one of the chiefest factors in our business recovery, be that recovery
speedy or slow. In the last year you members of the New York Stock
Exchange have given a great example of co-operation. Had it not been for
your spirit and for your machinery of co-operation, shown during the stock
market difficulties of a year ago and manifested many times since, the
losses of investors, and the situation itself, would have been far worse
than it is to-day. From personal experience I can state that the authorities of the New York Stock Exchange have shown great helpfulness,
courage and wisdom.
Now comes the question id the co-operation of your members in another
phase—the one of unemployment in this city. I call it a question, but it
is not really such. By your contribution already of half a million dollars
to the work of helping local unemployment you have made a great start
in giving your answer. But the needs are greater than ever. And they
do not diminish, even if most of the firms whose members are now before
me are retaining on their payrolls more employees than they need. I know
they are. All of us are. But the appeal is still urgent from Mr. Prosser's
committee whose fine slogan is "Help the Man Who Wants to Work."
I know that this fresh appeal will not be in vain. There is no group
In this land that has shown itself more open-handed than the New
York
Stock Exchange, no group more ready, more eager to take a lead
in
measures of relief, of help, of community co-operation. Once more
we
appeal to that spirit of vision and generosity which you always show.
I think it must have been after a business depression 2,500 or so
years
ago that the Prophet Isaiah gave vent to his utterance. I quote
it again
to-day, for I think it applies to you: "They helped every one his neighbor;
and every one said to his brother, be of good courage."
3985
time to come, banks and other investors have been constantly demanding
the supply of bills as fast as they have come into the market. On Nov. 29
the accepting banks alone had purchased and were holding a total of
$312,795,432 of other banks' bills, and this against a total of $218,937,000
which the Federal Reserve Banks were holding as open market purchases
for their own account, indicates the important position which the bill.
making banks alone have taken in supporting the bill market.
With such a large percentage of the total volume of bills now so well
divided among the Federal banks, foreign investors and the American
accepting banks and bankers, and with the peak of the bill-making season
only a few weeks away, the discount market dealers may be seen to have
come through an extraordinary year with a record achievement.
Mr. Bean's survey for the month follows:
TOTAL OF BANKERS DOLLAR ACCEPTANCES OUTSTANDING FOR
ENTIRE COUNTRY BY FEDERAL RESERVE DISTRICTS.
Federal Reserve Districts—
Nov. 29 1930. Oct. 311930. Nos. 30 1929.
1
$145,141,142
$137,395,045
3163,340,621
2
1,157,656,545 1,108,445,904 1,234,749,970
3
25,417,728
25,836,334
20,698.896
4
25,649,076
24,098,970
22,464,649
5
9,479,852
8,302,026
12,374,929
6
20,733,967
21,661,842
20,013,619
7
97,715,602
100,167,902
94,273,254
3,730,441
4,324,452
2,377,984
9
6,527,752
6,691.896
5,894,306
10
500,000
500,000
2,040,610
11
7,230,463
6,361,609
13,124,329
12
71,635,106
64,457.746
66,546,757
Grand total
$1,571,417,674 $1,508,243,726 81,657,899,924
Inc.$63,173,948 Dec.$86,482,250
CLASSIFIED ACCORDING TO NATURE OF CREDIT.
Nov. 29 1930. Oct. 31 1930. Noy. 30 1929.
Imports
2242,684,032
$244,106,885 $362,735,152
Exports
421.709,985
407,090,647
522,855.222
Domestic shipments
33,604,210
31,340,578
20,251,228
Domestic warehouse credits
273,613,464
234,989,437
259,786,794
Dollar exchange
56,055,231
57,812,207
75,645,073
Based on goods stored In or shipped
between foreign countries
543,750,748
532,903,972
416,626,455
AVERAGE MARKET QUOTATIONS ON PRIME BANKERS ACCEPTANCES
NOVEMBER 17—DECEMBER 17.
Days—
Dealers Buying Rate. Dealers Selling Rate.
30
2.000
1.875
60
2.000
1.875
00
2.000
1.875
120
2.125
2.000
150
2.250
2.125
180
2.250
2.125
Pool to SupportICanadian Stocks—Strong Financial
Group Said to Have Been Formed to Halt Drop in
Market.
The following Montreal dispatch, Dec. 17, is from the Nomination of Eugene Meyer as Governor of Federal ReNew York "Times":
serve Board Opposed by Representative McFadden—
Semi-official announcement of the formation by leading Canadian
Holds Confirmation by Senate Would Involve U. S. in
banks and financial houses of a supporting pool for the Canadian stock
Bank for International Settlements—President Hoover
market was made here to-day and contributed in an important measure to
an improvement of sentiment.
Reported as Deploring Mr. McFadden's Declarations—
This action by financial interests met wide approval on the local
street
Latter Also Criticized by Representative Luce.
and was greeted as a most important step toward the restoration of confidence. The movement, moreover, has a further implication as a reflection
In the House on Dec. 16, during debate on the Agriof the confidence of the financial leaders that the present situation
will cultural Department Appropriation bill, Representative
work itself out in a satisfactory manner.
McFadden (Republican of Pennsylvania), Chairman of
It was regarded as most constructive that the sacrificing of securities
at
the present low values should be halted as effectively as possible through the House Banking and Currency Committee, referred
underlying support for leading issues.
to the possible "involvement of our Federal Reserve SysWhile to-day's robust rally appeared as a direct reflection of the swift
tem in internationalism." In his remarks he said "there
recovery in Wall Street and merely marked a natural market action,
the
psychological effect of the announcement of support was regarded as a is pending before the Senate at this time, having been recheck to a certain amount of frightened selling and encouragement of ported favorably by the Senate Banking
and Currency
latent buying power.
Committee, the nomination to be a member of the Federal
Bankers Acceptance Volume Gains $63,173,948 in Reserve Board and its Governor, the name of Mr. Eugene Meyer, Jr. This appointment should not be conMonth—Total Nov. 29, $1,571,417,674.
firmed by the United States Senate, and I want to make
The volume of bankers' acceptances continues to increase that just
as positive as it is possible for me to make it.
notwithstanding the adverse conditions in foreign and do- If you want to turn the Federal
Reserve System over
mestic commence. The results of the regular month-end to international financiers place Mr. Meyer
in that parsurvey of the American Acceptance Council were announced ticular post at this time." According to a dispatch from
on Dec. 17, showing that on Nov. 29 the volume of bills was Washington, Dec. 17, to the New York "Times" Presi$63,173,948 higher than on Oct. 31, and that the new grand dent Hoover was deeply concerned over Representative
total of $1,571,417,674 was within $86,482,250 of the abnor- McFadden's speech. The dispatch also said in part:
The President considered the speech an unfortunate occurrence, parmally high figure for November 1929. Robert H. Bean, Exduring consideration of legislation designed for unemployment
ecutive Secretary of the Council, further reports as follows: ticularly
relief and correction of the economic depression. Mr. McFadden not
This reduction from last year's figures of only a little over 5% actually
Indicates a greater use of acceptance credits at this time, as the shrinkage
In wholesale prices for commodities usually financed by acceptances, now
placed at 15% for the year, would on an equal volume leave the current
total of bills at only about $1,410,000,000.
With only one month to go before the year's record is revealed, it is now
certain that acceptance credits have financed over $1,000,000,000 more
business here and abroad than in the year 1929.
The present report on the kinds of business financed, according to the
classifications of the Federal Reserve regulations, show that American
warehouse secured credits lead with an increase of $38,624,027, which
puts the total of such bills at $273,613,464. Export credits now' stand
at $421,709,985, a gain of $14,619,338 for the month, while credits against
goods stored abroad or shipped between foreign countries and domestic
shipment credits gained $10,846,776 and $2,263,632, respectively.
The only decreases ware in import credits, which went off $1,422,849,
and bills to create dollar exchange, which declined $1,756,976, both
Immaterial in amount or significance.
The remarkably high total of bills drawn to finance foreign storage and
shipment continues to attract attention. A year ago this total was $416,626,455, compared with $543,750,748 on Nov. 29, an increase of
$127,124,293.
This is an extremely desirable type of business for our American banks,
and it has, in addition, given our bill market a fine volume of acceptances
to replace the shrinkage in volume that would have been encountered if
we had been confined to strictly American trade financing.
Bill market rates of discount on bankers' bills continued through
November and to the present date at the same level of 2%-1/A% for 30-,
GO-, 90-day maturities, which have prevailed without change since June 24.
As reflecting the expectancy of low rates for the period and for some
only attacked Mr. Meyer, but declared that deflation of international
securities held by banks throughout the country was at the "top of the
list" in reasons for the depression.
In a telephone conversation with Representative Tilson of Connecticut,
administration spokesman in the House, Mr. Hoover asked Mr. Tilson
to sound out leading members of the Banking and Currency Committee
to see if they joined Mr. McFadden in his opinions. Mr. Tilson said
today that, like himself and the President, members of the committee
thought the speech yesterday "unfortunate and untimely."
Luce Defends Meyer.
Representative Luce of Massachusetts, second ranking Republican on
the Committee, rose in the House earlier in the day to denounce "these
utterances" and to say they were "not the beliefs of the Committee."
Mr. Luce defended Mr. Meyer and charged that Mr. McFadden was
engaged in private financial operations, and as Chairman of the House
Banking and Currency Committee was "using its prestige to secure investors, using its prestige to get stocks."
Mr. McFadden sat in the chamber during the whole course of Mr.
Lure's remarks. He merely laughed when they were finished and declined to discuss the speech, other than to name the private business
concern with which he is connected as the Transcontinental Shares Corporation of New York.
The following account of Mr. McFadden's speech is
taken from the United States Daily of Dec. 17:
American international financiers, Chairman McFadden said, have used
American money to help organize the German Reichstag. He referred to
his previous statements relative to the commercial reparations loan, a
part of which was floated in this market, and cited current quotations
on these bonds as justification of his predictions.
3986
FINANCIAL CHRONICLE
"The seriousness of the situation is perfectly apparent," said Mr.
McFadden. "We are now beginning to get the facts pertaining to the
important part which the Bank for International Settlements is to play
with regard to international financial and political operations. I need
only cite in this connection the recent visit to the Capitol and to the
White House, to the Treasury and to the Department of State, of the
head of the Bank for International Settlements, Mr. Gates W. McGarrah.
I also call attention to a speech which that gentleman made in New
York City only 10 days ago, in which he pointed out the important part
which this institution is to play in the future in regard to world finances.
He said it was the purpose and the reports indicate mobilization is beginning of the world's gold. They propose to deal with international operations. He also told us in this speech of the important part which the
Bank for International Settlements played in upholding the plan of the
finance minister in Germany in the last session of the reichstag. Just
prior to that, I want to point out to you an important step that was
taken by the same international banking group, which financed and sold
in this country $300,000,000, or a part of it, of the commercial reparation loan. You gentlemen, I am sure, will remember my criticism of
that, and my attack on the legality and unwisdom of the sale of these
securities in this market as a possible involvement of our people in international affairs to an extent that it did not realize.
"Those bonds have declined from a value of 9134 to a low of
68. The market on Saturday was 70, representing a loss by American investors in these particular securities of over $20,000,000.
The particular reference that I make to this financing was
a private undertaking. The syndicate was headed by Lee Higginson
and Co., which is really the back door of J. P. Morgan and Company
who financed an additional loan of $125,000,000. That loan was made
for the purpose of aiding Mr. Bruening in organizing the Reichstag,
in order to put through his financial plan for the stabilization of Germany. Imagine, if you please, any financial house in Europe coming
into this body and granting loans and bringing pressure to bear on the
organization of the House of Representatives. Yet that is almost exactly
what the Bank for International Settlements has done and our banking
houses here have been placing this tremendous financial power in the
hands of the Bruening financial party of the Reichstag."
Mr. McFadden continued with the statement that there is pending in
the Senate reported favorably by the Senate Committee on Banking and
Currency, the nominations of Eugene Meyer, Jr., as member of the
Federal Reserve Board and as its Governor.
"This appointment should not be confirmed by the United States
Senate," he said, "and I want to make that just as positive as it is
possible for me to make it. If you want to turn the Federal Reserve
System over to international financiers, place Mr. Eugene Meyer in that
particular post at this time."
"A careful analysis discloses that Mr. Meyer has been very closely
connected during his whole financial career with banking houses of international reputation. He had a very close connection with J. P. Morgan
and Company, and as the head of the War Finance Corporation, and
in carrying on its activities, those close relationships were actively disclosed. He is a Wall Street man.
"I want to point out just what has happened in order to make that
nomination and appointment possible. Governor Roy Young from Minnesota was the Governor of the Federal Reserve Board. His resignation
was secured by appointing him as Governor of the Federal Reserve Bank
in Boston and because of that clause in the Federal Reserve Act which
prohibits two members serving from one Federal Reserve District, Mr.
Edmund Platt, the Vice-Governor of the Federal Reserve Board, was
likewise removed by giving him a position with the Marine Midland
Bank in New York. I understand that a new position of Vice-President
was created, and two operations had to be performed in order to create
a vacancy which would permit the appointment of Mr. Meyer.
"The Senate of the United States should not confirm his appointment
without going into details as to why these changes were made necessary
and why the appointment of Mr. Meyer was made necessary. He is
recognized as an international financier; he is a Wall Street banker, and
closely affiliated with these international banking groups."
Mr. McFadden said Mr. Meyer is a brother-in-law of George Blumenthal and, he understands, represents the Rothschild interests and is a
liaison officer between the French Government and the Morgan Company.
He said there is no question that the Federal Reserve System is playing
with international financial operations through the Bank for International
Settlements.
"We are in the midst of a terrific business and financial depression
in the United States," continued Mr. McFadden, "and it is just at such
times that deals of this character are put over."
In referring to recent bank failures, Mr. McFadden said that be hoped
before the present session of Congress is ended, that the Banking and
Currency Committee may look into the causes for such failures. He
declared that the analysis he has already made shows that they are not
due entirely to agricultural depression.
"You are going to find," he said, "that these large financial institutions that in the past few years have been floating and financing these
various consolidated enterprises that we have been in a mad rush to put
together, where practically every business throughout the country that
or
has gained any standing or any basis of earnings has been merged
mobilized and financed in New York and elsewhere, have been emitting
unloading
securities after pulling out the cream of the securities, and
the worthless securities, not only on the banks but on innocent investors
throughout the country."
[voL. 131.
particular phase of the financial troubles that confront the United States.
Later Mr. McFadden stated orally that the House Banking and Currency Committee, which he heads, should include among witnesses to be
called: George F. Rand, New York, President of the Marine Midland
Trust Co., and Edmund Platt, Vice-President of the same company, who
was former Vice-Governor of the Federal Reserve Board; Roy A. Young,
Governor of the Federal Reserve Bank of Boston, formerly Governor of
the Federal Reserve Board; and Alfred A. Cook, of New York.
Representative Luce's criticism on Dec. 17 of Mr. McFadden's speech was reported as follows in the United
States Daily of Dec. 18:
"Yesterday, the Chairman of the Committee on Banking and Currency took the floor," said Mr. Luce "to discuss certain questions of
finance. I wish to say that the considerations that he advanced have
not been considered by the Committee on Banking and Currency. Other
members of the Committee have taken no public position thereon. The
Chairman spoke for himself and not for the Committee. There are
certain features of his remarks that ought not to go without an expression
of opinion by at least one other member of that Committee.
"In the first place, the Chairman undertook ,to advice the Senate of its
course on the nomination of Eugene Meyer to the Federal Reserve
Board. The Speaker of the House last Spring in a ruling upon a point
of order as to the parliamentary situation in such a contingency decided
that this must be left to the conscience and judgment of each Member
of the House. It is, however, still the parliamentary law laid down
in Jefferson's Manual that Members of one body shall not concern themselves as to the proceedings of the other body. But inasmuch as Eugene
Meyer has been attacked on this floor, only on this floor, can there be
some answer.
"Eugene Meyer was Chairman of the War Finance Corporation. I
differed with his judgment as to whether it should be continued. His
view prevailed. He performed his duties well on that occasion and he
did the country an inestimable service. Since the war he has occupied
high positions of trust under this Government, performing his duties
faithfully, honestly and intelligently.
"The President of the United States, in my judgment, could have
found no man better qualified to meet the present exigency. I do not
advise the Senate, but I do say that it was unfortunate that on the
floor of this House there should have been discussion of the question
requiring this answer.
"Secondly, the Chairman of the Committee on Banking and Currency
this
put himself in an unfortunate position in counselling Congress at
ago
particular emergency. It was announced to the press some weeks
The word
that he had become the President of an investment trust.
I
'trust' implies a responsibility to all those engaged in its operation.give
investors to
would ask the House whether it was fair to his own
market
the
crash
worst
that speech yesterday right in the middle of the
has known.
Committee on
"I also question the propriety of the Chairman of the
while
Banking and Currency in engaging in public financial operations
he is chairman of that Committee, using its prestige for the continuance
of private interests, using its prestige to secure investors, using its
of this
prestige to get stocks. Is that the right thing for a member
legislation
body, Chairman of a Committee having the most important
of
in the United States, with the gravest concern as to all matters
counsellor
finance, a man whose word is spread constantly abroad as a
him
on this floor—is it right and proper under such circumstances for
to take the floor, as he did take it on yesterday?
Committee
the
of
"Is it a matter of propriety that he, as Chairman
an investment
trying to conserve private industry, is the President of
trust?
Unfortunate Time for Speech, He Says
the speech.
"I would further emphasize the question of time in making
in a perilious
For some days it has been known that the market has been
have dismillions
and
condition. Yesterday, stocks fell so that millions
market the Chairman
appeared, and right in the midst of this boiling
of the people and other
takes the floor and adds further to the distress
time to pour fuel
financial leaders and institutions. Was it a happy
on the flames?
using a public position
"Next I would suggest the propriety ever of
may be shaken.
with the possibility that confidence in public institutions
officials, against the
That speech was full of insinuations against public
States. It
Federal Reserve system, against the President of the United
great financial
was full of insinuations against the integrity and honesty of
country. It disturbed
leaders in this country, of the great banks of the
they look to
still more the confidence of the people in those to whom
save them in this hour of crisis.
people to doubt
"I ask if it was a wise and prudent thing to ask the
was full of
the integrity of the Federal Reserve system: That speech have acted
Reserve system
insinuation that those who lead the Federal
those who have
for some personal or financial gain. It intimated that
with impropriety, almost with
conducted the system have conducted it
take toward this system in
dishonesty. Was that the right attitude to
taken so much pride;
which both political parties in this country have
desire to support it
where they contest authorship of it; and where they
in every possible manner?
that system under such
"Was it a wise and judicious thing to attack
the banks of the country
circumstances? Is it a wise thing to attack
in the small hamlets,
when they are failing on every hand, when even
is apprehension and
Extension of Banking Interests Is Analyzed.
where the bank is the principal institution, there
depositors? Is it a wise thing to tell the people
the
of
e
O'Connor
fear
part
on
the
Representativ
of
the
opinion
with
Mr. McFadden agreed
as Chairman of
is of the United States, actually speaking in his capacity
(Dem.), of New York, that one reason for the present difficulties
other members of
and have this Committee, giving the public to understand that
that banks have given up doing a strictly banking business
honesty and de"There is no the Committee and Congress itself doubted the integrity,
organized finance and security affiliates and subsidiaries.
banks of the country?
the
run
to
men
reis
to
cency
of
the
financial
referred
O'Connor
heard from
doubt," he continued, "that the matter Mr.
"I would ask further whether these arguments we have international
for a large
sponsible for a lot of thinks that have been going on and
which were repeated yesterday, about
and
time,
time
responsible
to
are
they
fact,
In
sustained.
been
have
that
that
part of the losses
in such a crisis as this? Everybody knowsknows
for a lot of the speculation which occurred last year, where affiliates finance were justified
of the world. Everybody
finances
the
in
involved
been
the
that
already
we
have
are
They
Everybody
of some of the large houses were the violators.
these fancy that these huge payments of debts have to be met somehow.
land,
sources from which hundreds of millions of dollars worth of resulted in
our own Treasury, the welfare of the
of
welfare
that
knows
the
This
public.
innocent
the
on
of the
securities have been unloaded
that caused as a whole, depends on the integrity, the good faith, the wisdom
thing
very
the
fact,
In
year.
last
of
the wide speculation
Summer these people who are engaged in handling these international relations.
uprightness,
the crash, of last October was the fact that early in the
operations in
"Is it a wise thing to impugn their honesty, impugn their insinuation
houses that had all of these reorganizations and financial
to understand by
public
the
give
and
consciences,
Federal
Reserve
their
impugn
the
from
their own
process became aware that pressure was on
was imminent, after insinuation that they are doing the wrong thing for
to reduce credit lines and that an economic depression
same time.
selfish gain or for the gain of private interests?
the
and
one
at
securities
their
of
rid
to
get
tried
all
and they
prudent at this
"I cannot believe that such statements as these are
House Banking
Mr. McFadden concluded with the statement that the
Reserve system is playing
Federal
the
that
question
no
study
of
is
a
'There
this
time:
actively
.ad Currency Committee is going to take up very
DEC. 20 1930.]
FINANCIAL CHRONICLE
3987
with international financial operations through the Bank of International next, but in any
event the investigation comes at a most opportune time
Settlements.'
in view of the prevailing banking situation, and it is expected that a great
"Playing! In a time of crisis like this, to charge the most responsible deal of valuable information can be
drawn from this situation with a view
agency in the United States with playing with the savings, the fruits to undertaking by legislation to
prevent a recurrence of conditions such
of the labor of the people, playing with the fruits of their labors laid as now exist.
aside against old age and needs and sickness, accusing our greatest
Those immediately concerned with the investigation are very diffident
agency with playing with the situation!
about discussing the matter, this caution possibly being influenced by the
"Sir, I denounce those utterances, I renounce those utterances. I say prevailing banking situation. Aside from the brief statement of Senator
they are not the beliefs of the Committee. I say they are not the be- Glass, following the morning session, no information as to the plans of the
liefs of the House. They were uncalled for. They were untimely and subcommittee was available. However, the resolution under which the
they were wrong."
investigation is to be conducted of itself gives ample idea of its probable
scope.
Mr. Tilson Describes Remarks as Inopportune.
Under the terms of the resolution the subcommittee virtually is directed
The Majority Leader of the House, Representktive Tilson (Rep.), of to make
a complete survey of the systems in question and a full compilation
New Haven, Conn., conferred with President Hoover over the telephone of the
essential facts, the result of its findings together with the recomDec. 17 regarding the speech of Mr. McFadden. Later Mr. Tilson stated mendations for essential
legislation to be reported to the Senate as soon as
orally: "I feel that it was an inopportune time to make such a speech practicable. Unlike
ordinary unfinished legislative business, this matter
and the reaction of those Members of the House with whom I have will not come to an end
with the close of the present session of Congress,
talked is unfavorable."
but, under the Glass resolution, is a continuing proposition in the next and
even succeeding congresses if such a length of time be required to complete
work.
Senate Banking and Currency Committee Approves Nomi- theThe
subcommittee does not have to confine itself to the City of Washnation of Eugene Meyer, Jr., as Member of Federal ington, for it can hold hearings when and where they may be desired.
it may "require by subpoena or otherwise the attendance of such
Further,
Reserve Board.
witnesses and the production of such books, papers and documents, to
The Senate Banking and Currency Committee ap- administer such oaths and to take such testimony" as it is deemed advisable
proved on Dec. 10, the nomination of Eugene Meyer to by the subcommittee.
There is a firm belief in certain circles that had such an investigation
be a member of the Federal Reserve Board. The ap- been undertaken on the occasion of the
first demands for a thorough study
pointment of Mr. Meyer as Governor of the Board suc- of the operation and the administration of the law, the present banking
situation,
if
occurring at all, would have appeared in less severity than now.
ceeding Roy A. Young, resigned, was referred to in these
It is anticipated that the study will now be prosecuted
to the
columns Sept. 6, page 1507; Sept. 13, page 1654 and Sept. end that remedial legislation in some appropriate formenergetically
will be enacted.
20, page 1812.
• Nature of Glass Bill.
Senator Glass has some very definite ideas as to how come aggravated
Glass Senate Committee Launches Inquiry on Bank conditions can be cured in whole or in part. Be embodied some of these
Situation—Dr. H. Parker Willis Appointed Tech- views in a bill introduced in the Senate last summer, and this may form
basis for the consideration of new legislation along remedial and prenical Adviser in Probe—To Proceed with Question- the
ventive lines.
Entitled the "Banking Act of 1930," the Glass bill is designed to bring
naires and Hearings.
up to date laws affecting the country's national and Federal Reserve bankLegislative machinery for carrying out in a thorough ing
systems and to serve the vehicle for the present investigation. It
manner the investigation of the operation and administra- proposes to give national banks the same general powers as State banks;
restricts
chain or group banking and authorizes Statewide branch banking.
tion of the Federal Reserve and National Bank Acts was
provides for the restriction of the amount of brokers' loans with a view
put in motion on Dec. 12 with the appointment of the It
to curbing stock market speculation. It requires affiliates of na tional banks
scientific staff that is to aid the Glass subcommittee of the to furnish condition statements to the Comptroller of the Currency, and
Senate Committee on Banking and Currency, which is to would impose similar requirements upon affiliates of State banks admitted
membership in the Federal
system.
make this study. Meeting in executive session (said the to Another important feature Reserve
of the bill is that designed to eliminate
Washington correspondent of the New York "Journal of the Secretary of the Treasury as a member ex-officio of the Federal
Commerce"), the subcommittee designated as its technical Reserve Board. Other provisions call for a more liberal distribution of
earnings of the Reserve system to member banks;the prevention of member
adviser Dr. H. Parker Willis, editor of the "Journal of Com- banks borrowing on their
direct notes at Reserve banks or their lending
merce," first Secretary of the Federal Reserve Board and funds to brokers for speculative purposes, and the priority of savings
depositors on a part of assets of national banks.
associated with Mr. Glass when he was Chairman
of the
House Committee on Banking and Currency in the preparaHouse Unlikely to Act on Banking Legislation.
tion of the Federal Reserve Act. Associated with him will
With a view of "filing" with the House the mass of inforbe B. H. Beckhart, Assistant Professor of Banking of
Columbia University, and Jules I. Bogen, Associate Pro- mation gathered by the Committee on Banking and Curfessor of Finance in New York University. The paper from rency during its study of branch, chain, group and unit
banking, Chairman McFadden on Dec. 15 called a meeting
which we quote went on to say:
Dr. Willis appeared before the subcommittee and there followed a dis- of his committee for Wednesday to consider the form which
cussion of plans for the holding of hearings soon after the conclusion of the report will take. We quote from the New York "Journal
the Christmas holidays. It was later announced by Senator Glass (Dem.),
of Commerce." Continuing, it said:
Virginia, that work will be commenced at once.
Questionnaires Prepared.
Dr. Willis was authorized by the subcommittee to do such preliminary
work as may be necessary in the preparatien of questionnaires to be sent
out to various groups of bankers and others,over the signatures ofthe Chairman (Glass) and with the full sanction of the committee," Senator Glass explained to newspaper men following the meeting.
"It is thought that prompt and frank response to these questionnaires will
facilitate the inquiry and preclude the necessity ofsummoning a great many
witnesses, whose testimony might otherwise be required in person. It is
also thought that the answers to these questionnaires will be received in time
to enable the subcommittee to begin its formal inquiry
not later than
Jan. 15."
The first work to be undertaken by the subcommittee, through its staffof
experts, will be the assembling of detailed data with reference to present
banking conditions and recent developments, it is assumed. This data
would be obtainable direct from the banking institutions, on the one hand,
and Government agencies on the other. There will be a program in all
probability setting forth the topics to be considered, and the first part of
these will be handled so that in all probability the results will be available
early next month. By that time, it appears, the committee will be ready to
commence hearings, and so there will be ready for them information to be
developed by oral testimony.
Although the present inquiry was projected more than three years ago,
when the mounting volume of brokers'loans and other security loans began
to attract the attention of those interested in or responsible for the economic welfare of the country, a hearing occasioned by the presentation in
the Senate of a resolution by Senator William S. King (Dem.), Utah,
brought forth a great deal of information of a technical character, largely
growing out of the testimony presented to the Senate Banking and Currency
Committee by Dr. Willis and by Prof. Sprague of Harvard University,
whose views on the question of brokers' loans differed. Dr. Willis on that
occasion spoke in warning tones of the then apparent pending disaster in
the speculative markets, but, in the face of Administration and banking
statements of prosperity and reassurance, his views, and those who thought
as he did, were for the time discounted.
"The committee is of the opinion that a comprehensive study and survey
for a more effective operation of the National and Federal Reserve banking
systems of the country should be made preliminary to essential legislation,
the committee report on the King resolution asserted.
Doubt Bill This Session.
Since that time there has been more or less consideration given the matter,
the recent political campaign, however, diverting immediate interest from
it. It is not expected now that the "essential legislation" referred to can
possibly be prepared at the present session of Congress,terminating March 4
In describing the proposed step as the filing of the report McFadden indicated that no action on banking legislation will be undertaken by the
House at this session. Earlier indications were to the effect that the
committee would draft measures covering the various fields of banking
which its investigation explored for presentation to the House.
H. Parker Willis Heads Trust Advisory Body.
Dr. H. Parker Willis has accepted the Chairmanship of
the Advisory Committee of ABC Trust Shares, the distributor of which is Allied Business Corporation Shares, Inc.
The Chase National Bank is trustee. This is noted in the
New York "Journal of Commerce" of Dec. 18. The item
further says:
Dr. Willis, editor of the "Journal of Commerce," has had a long career
in finance and banking. He served as technical expert for the House
Committee on Currency and Finance which drafted the Federal Reserve
Act under the Chairmanship of Senator Glass. Later he became the first
Secretary of the Federal Reserve Board.
He had just returned from Rumania where, at the invitation of the
Rumanian Government, he spent several months making a complete survey
of the country's economic resources coupled with a study of banking and
currency conditions.
The acceptance by Dr. Willis of the appointment of Chairman of the
Advisory Committee of ABC Trust Shares marks an important advance in
the principles of fixed trust management," an announcement from the
organization stated. "One important function of Dr. Willis and his committee is to exercise advisory control over the provision in the trust agreement between Allied Business Corporation Shares, Inc., and the Chase
National Bank. which permits the depositor corporation to eliminate and
distribute the proceeds of any stock in the portfolio if, in its opinion, conditions have arisen which in any way adversely affect the investment value
of the security in question."
The Advisory Committee will also formulate plans for additional trust
series which will be issued by the depositor corporations.
Halsey, Stuart 8c Co. on Factors in Bond Market—I930
Noteworthy for Ready Reception Given to "GiltEdge" Bonds.
A good many positive factors can be noted in the bond market as the year draws to a close, Halsey, Stuart & Co. point
3988
FINANCIAL CHRONICLE
out in their quarterly review, issued Dec. 15. In the first
place, it says, there is no heavy supply of unsold bonds in
the market. Now corporate financing in prospect does not
run into large totals. Even the market situation surrounding the so-called investment type of issue is one that could
readily be corrected by even a moderately well sustained demand for bonds of these types.
'Commenting on the happenings of the year, the review
states that the bond market of 1930 has been noteworthy
for two principal reasons: first, for the ready reception that
has been given to the so-called "gilt-edge" variety; and, second, for the very limited interest shown in bonds of all other
types—including scores of well-secured issues whose only
lack has been wide public recognition. The reasons for this
are summed up in the following manner:
"This situation, of course, has reflected the prevailing state of the public
mind. The uncertainty and excessive caution shown by investors during
1930 has been a natural reaction from the over-confidence and excessive
enthusiasm of 1929. Most investors have not been satisfied to seek refuge
in conservative bond Investments, but have been insisting upon ultraconservatism and extreme liquidity."
In addition to discussing business and market conditions,
the review,appreciating the present puzzled attitude of many
investors as to just wthat course to take, outlines the importance of a sound investment viewpoint, saying:
"The events of 1930 have emphasized very strongly the importance to the
investor of adopting and adhering to a sound investment viewpoint and
policy. By this we mean a viewpoint which can be maintained in times
of stress as well as in times of financial fair weather. In adopting such
a position, the investor can afford to abandon the painful effort of endeavoring to foresee accurately the trends and events of next month or next year.
Hie concern is less with the probabilities and possibilities of the future
than with the facts of the present. His aim is primarily for regular income
with safety, rather than profit. He invests regularly when he has the money,
not overlooking the present unusual opportunities.
"The man who adheres to a sound investment viewpoint can have confidence to-day that American business will eventually resume its march
toward a greater future. Just how soon the forward movement will get
under way Is of minor importance from the standpoint of his investments,
if well chosen; for he is not at the mercy of the events of to-day or next
week, but enjoys the senior security and regular income paid by bonds
chosen for their soundness and their suitability."
[Vorm 131
Secretary Mellon Dec. 12 announced that the total amount of subscriptions received for the two issues of Treasury Certificates of Indebtedness, Series TJ 2-1931, 15
4%, dated Dec. 15 1930, maturing June 15
1931. and Series TD-1931, 174%. dated Dec. 15 1930. maturing Dec. 15
1931, was $1,457,197,000. The total amount of subscriptions allotted
was $428,322,000, of which $79,817,500 represents allotments on subscriptions for which Treasury certificates of indebtedness of Series TD-1030,
maturing Dec. 15 1930, were tendered in payment. Such exchange subscriptions tendered for Series TJ2-1931 were allotted 40%, and the exchange subscriptions tendered for Series TD-1931 were allotted 72%.
Allotments on other subscriptions were made on a graduated scale.
SERIES TJ2-1931.
Total
Total
Total Exchange Total Cash
Subscriptions Subscriptions Subscriptions SubscriPenc
Allotted.
Allotted.
Allotted.
Federal Reserve Districts— Received.
Boston
$26,000 516,607,000 816.693,000
$108,211,000
New York
341,819,500 22,192,500 33,756,500 55,949,000
1,418,000 11.800,000 13,218,000
88,454,500
Philadelphia
19,000 10,328,000 10,347,000
53,470,500
Cleveland
9,667,000
223,500
9,443,500
32.529,000
Richmond
60.000 12.049,500 12,109,500
47.274.000
4,599,000 14,483,500 19,082,500
113,247,000
AtlantaChicago
1,685,000 ' 1,803,500
118,500
9,612,000
St. Louis
1,613.000
1.195,500
417,500
6,462,000
Minneapolis
1.849,500
1,352,600
497.000
10.724,000
Kansas City
7,088,500
6.956,500
132,000
37,387,500
Dallas
137.500 10.383,000 10.520,500
92,181,000
San Francisco
$939,372,000 $29,840,500 5130,100,500 $159,941,000
Total
SERIES TD-1931.
$126,000 511,667.500 511,793,500
526.840.000
Boston
32,525.500 54.756,000 87,281,500
178,166.500
York
New
8,000 22,600.000 22,608,000
44,559,000
Philadelphia
1,826,500 19,852,500 21,679,000
35,458,500
Cleveland
705,000 12.707.500 13,412,500
19,372,500
Richmond
121,500 18.757,500 18,879.000
28,073,000
Atlanta
96,642,500 13,767,000 36,890,500 50,657,500
Chicago
3,591,000
3,228,000
5,384,000
363,000
St. Louis
1.850,000
8,500
1,841.500
3,555,500
Minneapolis
2,594,000
90,500
2.503,500
4,143,500
Kansas City
9,811,000
108,500
9,702,500
15,283,500
Dallas
310.500 23,897,000 24,207,500
62,325,000
San Francisco
16,500
16,500
21,500
Treasury
$517,825,000 $49,977,000 $218,404,000 $268,381,000
Total
$1,457,197,000
Total subscriptions received, both series
79,817,500
Total exchange.subscriptions allotted, both series
348,504,500
Total cash subscriptions allotted, both series
428,322,000
Total subscriptions allotted, both series
U. S. Senate Committee Votes to Postpone Consideration
of World Court Protocols Until December Next Year
—President's Message to Senate.
By a vote of 10 to 9 the Senate Committee on Foreign
Relations voted on Dec. 17 to postpone until December,
United
The opinions with regard to the various divisions of the 1931, action on the protocols for adherence by the
With rebond field, as expressed In the review, are summarized as States to the Court of International Justice.
gard to the Committee's action we quote the following
follows:
"HeraldPublic Utility Bonds—Public utility bond offerings during 1930 were Washington account Dec. 17 to the New York
larger than any year since 1927. The sustained demand for high grade Tribune":
types of bonds of this class is a reflection of the remarkably good record
The Senate Foreign Relations Committee voted today to postpone the
which the public utility industry has been able to make this year In the World Court question until the third Wednesday of next December.
face of depressed conditions.
The committee stood 10 to 9, with Senator Thomas J. Walsh, Democrat,
Municipal Bonds—Offerings running considerably ahead of any year of Montana, absent. Since he was on record for prompt action on the
issues.
grade
since 1927. The demand has consistently favored the highest
court, leaders of peace societies immediately started pressure for reconOfferings of the year have consisted primarily of large issues brought out by sideration through his vote. Senate leaders regarded the prospect for a
$400,approximately
Of
districts.
tax
and
municipalities,
leading States,
committee reversal dubious, especially when Senator Arthur Capper, Re000,000 of new public bond issues authorized at the November elections, publican, of Kansas, declared tonight against reconsideration. Friends of
the court had hoped for his support in such a move.
many probably will be offered shortly.
Industrial Bonds—The volume has been on the decline each year since
Special Session Consideration Possible
indusmany
that
1927. Existing slow business is one reason, another is
Senator
A. Reed, Republican, of Pennsylvania, on whose initiaDavid
The
year.
last
through
stocks
financing
necessary
tries anticipated all
tive
the
acted, said the decision to delay would not hold in the
committee
while
obligations,
highest
grade
the
favored
overwhelmingly
has
demand
event of a special session, but he and others in the committee majority
bonds of less well-known companies or of companies engaged in industries
declared against a special session on the ground that it would retard busiadversely affected by current conditions, are neglected.
ness recovery.
Real Estate Bonds—Offerings in 1930 only a fraction of those made
There was nothing to indicate that President Hoover was disposed to
during 1929. Interest in these securities has for some time been at low call
a special session of the Senate on the World Court. Indications were
make
of
signs
improvement
definite
until
so
remain
ebb, and is likely to
to the contrary, in view of economic conditions. Leaders of peace
elements,
Despite
unfavorable
situation.
estate
real
the
in
appearance
their
societies protested that the imminence of the Presidential campaign when
there are many sound real estate bonds in the market to-day which can the
next Congress meets would tend to delay action on the Court for
be bought with confidence and which show unusually liberal rates of return. three
years, rather than one year.
Investment Company Bonds—Many securities of this type are to-day sellThe group of Senate "irreconcilables" was split by the test in the coming at levels obviously inconsistent with their merit as sound investments. mittee,
the
with Senator William E. Borah, the chairman, lining up with
minority and his anti-court compatriots, George II. Moses, of New HampTotal Subscriptions of $1,457,197,000 to Two Series of shire, and Hiram W. Johnson, of California, voting for delay. Democrats
issue.
Treasury Certificates of Indebtedness Offered to voted solidly against sidetracking the
The vote:
-10
Amount of $400,000,000—Allotments $428,322,000.
POSTPONEMENT
FOR
Republicans-9
The total subscriptions to the two issues of Treasury CerJOHNSON, California
tificates of Indebtedness, offered on Dec. 8 by Secretary of
MOSES, New Hamp.
the Treasury Mellon totaled $1,457,197,000, according to
CAPPER, Kansas
an announcement on Dec. 12 by Mr. Mellon. As indicated
REED, Pennsylvania
FESS, Ohio
in our issue of a week ago (page 3816) the certificates wero
GOFF, W. Virginia
offered to the amount of $400,000,000 or thereabouts. The
LA FOLLETTE, Wis,
total amount allotted is $428,322,000, of which $79,817,500
VANDENBERG, Mich.
ROBINSON, Indiana
represents allotments on subscriptions for which treasury
Farmer-Labor-1
certificates maturing Dec. 15 were tendered in payment.
SHIPSTEAD—Minnesota
total amount of $400,000,000 certificates offered,
Of the
$250,000,000 represented Series TD-1931, running for one
year from Dec. 15 1930, and bearing interest at 1%%,and
$150,000,000 represented Series TJ 2-1931, dated Dec. 15
4%.
1930, running for 6 months and carrying interest at 13
The total subscriptions to this latter issue were $939,372,000
and the total subscriptions allotted were $159,941,000. The
total subscriptions to Certificates TD-1931 were $517,825,000
and the total subscriptions allotted were $268,381,000.
Secretary Mellon's announcement of the subscriptions, as
given in the "United States Daily" follow:
AGAINST POSTPONEMENT-9
Republicans-2
GILLETT, Mass.
BORAH, Idaho
Democrats-7
SWANSON, Virginia
BLACK, Alabama
ROBINSON, Arkansas
WAGNER, New York
HARRISON, Miss.
PITMAN, Nevada
GEORGE, Georgia
DEC. 20 19301
FTNANCITAL CITRONICLE
There were broad hints that leaders of the committee were confident of
the division before the vote was attempted. Senator Walsh was in New
York acting as adjudicator in a legal proceeding that is expected to require several days. Several of those voting against postponement were
on record as opposed to permitting the World Court question to come to
a vote in the present short session. Among them was Senate minority
leader Robinson, who voted, however, for the procedure which would bring
the protocols out on the floor.
3989
Nebraska Treasurer Favors Low Interest on Deposits
by State—Explains that Banks Under Present Law
Do Not Care to Accept Public Funds Because of
Small Profit.
State Treasurer W. M. Stebbins of Nebraska, does not
agree with the financial agent of an Eastern State who advocates charging the same rate of interest on State funds deposited in banks as that paid to private depositors. The
"United States Daily" of Nov. 25, in reporting this in
Lincoln advices Nov. 24, continued:
Democratic Claims Anticipated
World Court advocates were quick to point out that the line-up enables
the Democratic party to claim that it did everything in its power
to
pedite ratification of the three protocols, which would mean United exState
adherence to the Court of International Justice.
President Hoover, while submitting the question over the protest
The Nebraska statute provides that not less than 2% interest shall
party leaders in the Senate, went no further than to ask that it of his
be con- be paid on public funds deposited in banks. This rate the State Treasurer
sidered "as soon as possible after the emergency relief and
appropriation requires on State checking accounts in banks. State certificates of deposit
legislation has been disposed of."
on banks draw 3%, although these, like all State deposits, are subject to
President Hoover's message to the Senate asking for withdrawal at any moment. The statute prohibits State banks in Nebraska
from paying more than 4% interest on deposits.
consideration of the three protocols "as soon as possible
"The banks of Nebraska generally under the present law do
care for
after the emergency relief and appropriations legislation State funds?'said Treasurer Stebbins,orally. "They take the not
funds often
has been disposed of," was sent to that body on December at the State Treasurer's request as an accommodation to the State. If the
banks did not do a banking business for the State it might be necessary to
10. The message follows:
establish a State bank, and this no one appears to desire. State funds in
banks reached the high mark of $8.000,000 last July The State deposits
To the Senate:
I have the honor to transmit to the Senate for its consideration and are now below $5,000,000. The amount increase when State receipts are
and falls when dull periods for tax paying come. The State must withlarge
action three documents concernings adherence of the United States to the
Court of International Justice. I inclose also a report of November 18, draw funds in the lean months to tide it over. Banks rarely get the use of
1929, by the Secretary of State. I trust the protocols may have con- State funds for more than 60 days.
"To obtain a State deposit now, banks desiring $5,000 must do two things
sideration as soon as possible after the emergency relief and appropriarequired by law—they must either pay for a surety bond for $5,000 to secure
tions legislation has been disposed cf.
deposit to the State, and this costs 1%. or furnish bonds or collateral
the
It will be recalled that on January 27, 1926, following extended consideration, the Senate advised and gave consent to adherence to the court security in the amount of $6,000, or 20% more than the deposit, and frewith five reservations; and it gave authorization to effect their acceptance quently these bonds so furnished by the banks have to be bought for that
purpose, and often they are bonds which bear 4% interest. Some estimate
by an exchange of notes. Consent to four of these
reservations was that a deposit of$5.000 for a whole year,secured by bonds, would mean only
promptly expressed at a meeting of the nation's members of the
and after negotiations, undertaken with the approval of President court, a gross earning of $50 a year for the bank. When overhead charges are
Cool- paid, what profit would be left?
idge, two protocols were drawn to revise the statutes of the
court in order
"I have had banks apply for a $5,000 State deposit, but when I set forth
to embody this consent and also to meet the fifth reservation. The proconditions required by law I received no reply from the applicant.
tocol of accession of the United States and the protocol of revision have the
"It was different under the bank guaranty law which no longer is in force.
now been signed by practically all the nations which are members of the
State banks under the law furnished no other security than the guarancourt and have also already been ratified by a large majority of these Then
ty fund law afforded. The State took its chances as any other depositor of
nations.
getting its money in the event of a bank failure.
The provisions of the protocols free us from any entanglement in the
"During the period when receipts of the treasury were at the peak I had
diplomacy of other nations. We cannot be summoned before this court. to go personally to banks and ask them to furnish
bond for an additional
We can from time to time seek its services by agreement with other na- $50,000 State deposit, in order to keep all State
money placed on deposit.
tions. These protocols permit our withdrawal from the court at
any These bankers consented to do this, but stated that there was nothing in it
time without reproach or ill will.
for the banks and that they accepted the State funds as an accommodation
The movement for the establishment of such a court originated
with t3 the State."
our country. It has been supported by Presidents Wilson, Harding
and
Coolidge; by Secretaries of State Hughes, Kellogg and Stimson; it
springs Nebraska Governor Proclaims
from the earnest seeking of our people for justice in international
Passage of Bank Amendrelations and to strengthen the foundation of peace.
ment—Receivers of Insolvent Banks May Bring
Through the Kellogg-Briand pact we have pledged ourselves to
the use
Action to Collect Double Liability of Stockholders.
of pacific means in settlement of all controversies. Our great
devoted to peace and justice, should lend its co-operation in thisnation, so
The constitutional amendment which was voted upon at
effort of
the nations to establish a great agency for such pacific settlement.
the Nov.4 election in Nebraska giving receivers of insolvent
HERBERT HOOVER.
banks authority to bring action for the immediate collection
The White House, December 10, 1930.
of the double liability of shareholders received 182,536
votes in its favor and 92,593 against, according to a proclamation just issued by the Governor, Arthur J. Weaver,
Cuba Formally Ratifies Protocols of World Court.
according to Lincoln, Neb., advices, Dec. 8, to the "United
From the United States Daily of Nov. 29, we take the
States Daily." We give the proclamation as follows:
following:
Cuba has deposited her instrument of ratification to the protocols of
the World Court, according to an oral announcement by the Acting
Secretary of State, Joseph P. Cotton, Nov. 28.
Cuba was the one nation abstaining from agreeing to the Root formula
providing for American participation in the World Court, according
to
announcements made previously at the League of Nations.
Mr. Cotton also stated orally that he had received a telegram from
American Ambassador in Havana, Harry F. Guggenheim, stating thatthe
a
bill had been passed by the Cuban Congress authorizing the President
to
suspend constitutional guarantees.
Italy Ratifies Protocol—Council of Ministers Approves U. S.
Adherence to World Court.
Under date of November 22, the New York "Times"
reported the following (Associated Press) from Rome,
Italy:
The Council of Ministers, upon the recommendation of Foreign Minister
Dino Grandi, today ratified a draft of the royal decree approving the
Geneva protocol of 1929 relative to adhesion by the United States to the
Permanent Court of International Justice at The Hague.
It was expected to approve also the Geneva protocols of 1920 and 1929
relative to the statute court itself.
Contrary to the general expectation, the Council produced no spectacular
price-cutting measures, but confined its deliberations to routine matters.
Whereas, there was submitted at the general election held in the State Of
Nebraska on Nov. 4 1930. a proposal to amend section 7 of Article XIIof the Constitution of Nebraska to read as follows:
Every stockholder in a banking corporation or institution shall be individually responsible and liable to its creditors over and above the amount
of stock by him held to an amount equal to his respective stock or shares so
held, for all its liabilities accruing or existing while he remains such stockholder, and all banking corporations shall publish quarterly statements
under oath of their assets and liabilities.
The stockholders shall become individually responsible for the liability
hereby imposed, immediately after any such banking corporation, or
banking institution, shall be adjudged insolvent, and the receiver of said
corporation or institution shall have full right and lawful authority, as such
receiver, forthwith to proceed by action in court to collect such liabilities:
and the provisions of section 4, Article XII, of the Constitution of the
State of Nebraska shall not be construed as applying to banking corporations or banking institutions.
And, whereas, at said election, 182,536 votes were cast in the State in
favor of said amendment and only 92,593 votes were cast against it:
And, whereas, more than 35% of all the votes cast in the State and a
majority of the votes cast upon that proposition were cast in favor of said
amendment:
Now,therefore, I, Arthur J. Weaver, Governor of the State of Nebraska,
by virtue of the power vested in me by the Constitution and laws of said
State, do hereby proclaim and declare that said amendment carried and is
now in full force and effect as a part of the Constitution of the State of
Nebraska.
North Dakota Land
Tax Becomes Lien on Dec. 31.
The "United States Daily" in its Dee. 15 issue prints the
following from Bismark, S. D., Dec. 13:
Real estate taxes become a lien on Dec.31 of the year for Which they are
levied, the Attorney General of North Dakota, James Morris, ha.s ruled.
The State Land Department had become possessed of a number of tracts
of land through mortgage foreclosure and desired to know when the State
became liable for taxes thereon.
"Under section 176 of the Constitution. property of the State is absolutely
exempt from taxation," the Attorney General pointed out. "It is my
opinion,"
he said,"that this exemption extends to property which the State
Acting Bank Commissioner Arthur Guy recommended to the
Legislature
Dec. 3 a study of the laws relating to the liquidation of trust companies. acquires through foreclosure of mortgages given to your department even
though the year of redemption expires after Apr. 1 (the date of assessment)
Mr. Guy favors a change whereby the Bank Commissioner would be
to pay a final dividend on proved claims in cases where all the assets able and prior to Dec. 31 (the date when taxes become a lien)."
have
been converted into cash before the expiration, of one year after the
publication notice. Under the existing law a year must elapse first Holding
Groups Formed for Banks in South Dakota.
before
payment is made even though the Commissioner is in a position to
earlier. Mr. Guy states that the existing law enforces an unnecessary act
Pierre
(South Dakota) Dec. 12 the "United States
From
delay
and prevents a speedy liquidation of cases.
Daily" reports the following:
Changes in Massachusetts Banking Law Affecting
Liquidation of Trust Companies is Favored.
From Boston, Dec. 6, the "United States Daily" reports
the following:
3990
FINANCIAL CHRONICLE
Articles of incorporation have been filed with the Secretary of State for
two holding companies to handle the liquidation of failed State banks.
The companies will have full control of the affairs of the banks involved,
outside of the jurisdiction of the State Banking Department, it was stated
at the office of the Secretary.
The Community Holding Co. will handle the affairs of the Guaranty
State Bank, Cresbard, and the Cresbard Holding Co. will liquidate the
Bank of Cresbard.
Indiana Securities Act Declared Unconstitutional.
According to Indianapolis advices, Dec. 6, to the "United
States Daily" the Securities Act of Indiana, known as the
blue sky law, has been declared unconstitutional by the
Indiana Supreme Court. Several points upon which the
holding of unconstitutionality could rest were indicated by
Judge Orbo R.Deahl,in his opinion. Chief among them is the
contention that the statute cannot be accurately interpreted
because of its vagueness.
ProL. 131.
another town or city in this State. There is no limitation, however, upon
a trust company organized with its principal office located in a city from
having a branch in the same city, since that company is still located in the
city the population of which controls its deposit.
In answer to your second question I wish to suggest that the right ofa trust
company to do business in another State would be regulated entirely by the
laws concerning such companies of that other State. There is nothing in the
statutes of Illinois which would prohibit a trust company of this Statefrom
doing business in another State.
In view of the provisions ofsection 12,which I have mentioned,I believe it
is within the power of the Auditor to command that all books, records, papers, etc., which are necessary for examination be produced at one place,so
that his examination may be complete and efficient, and if the company has a
branch office in the same city where it is located that company may be
compelled to have all of its records present at the principal location for the
purpose of examination.
In view of my conclusion above, I deem it unnecessary to answer your
question number 3; I have answered your question number 4 in the last
paigraph above.
anches Denied to Illinois Banks—Opinion Held to
Apply Only to Trust Companies.
supplementing the above, to the United
advices
Further
Branches—AtMay
Install
Illinois
rust Companies in
Springfield Dee. 15 state:
from
"Daily"
es
S
torney General of State Holds Law Does Not PreBanks in Illinois may not have branches, it was stated orally to-day
vent Branches in Same City.
by the Attorney General, Oscar Caristrom. The recent opinion of the AtAn Illinois trust company may have a branch office in the torney General to the effect that trust companies can establish branches
the city of location of the parent company has no reference to banks
same city in which it is located, but not in another town or within
which qualify to do a trust business, he explained.
Attorney
eity in the State, according to a recent ruling of the
Trust companies in Illinois cannot do a banking business, Mr. Carlstrom
eneral, Oscar Carlstrom. It may have branches outside of stated, but banks can qualify to do a trust business.
Illinois if the outside jurisdiction permits, he adds. (U. S.
"Daily," V:3111.).
Double Liability Ruled by Indiana Supreme Court on
Mr Carlstrom's opinion, in the form of a letter to the
Stock of Indiana Banks.
Auditor of Public Accounts, Oscar Nelson, who had made inShareholsers in State banks in Indiana are subject to a
quiry on the point,follows in full in the United States"Daily" double liability on their stock, the Indiana Supreme Court
in Springfield (Ill.) advices Dec. 12:
•
ruled Dec. 11 in reversing an appeal from the Wells Circuit
Dear Sir: I have your letter of Nov. 12, in which you ask my opinion on Court. This is noted in the "United States Daily" of Dec.
and
operation
the
arisen
relative
to
have
the following questions which
examination of trust companies qualified under an act entitled, "An Act 15, which further reports:
to provide for and regulate the administration of trusts by trust companies,'
approved June 15 1887. as subsequently amended:
1. May a trust company organized with its place of business in a certain
town or city, have a 'branch office in another town or city or a branch
office in the same city?
2. May it have a branch office in another State?
Section 1 of the Trust Act above mentioned provides in part as follows:
That any corporation which has or shall be incorporated under the general corporation laws of this State. being an Act entitled"An Act concerning
corporations." and all amendments thereof, for the purpose of accepting
and executing trusts, ...may be appointed ..,trustee by deed, etc....
Section 6 of the same Act provides in part as follows:
Each company in all cities and towns of 100,000 inhabitants or more, before accepting any such appointment of deposit, shall deposit with the
Auditor the sum of$200,000, and each company in all cities and towns of less
than 100,000 inhabitants shall deposit with the Auditor of Public Accounts
the sum of $50.000. said deposits to be for the benefit of the creditors of said
company. . .
Provided.'however, that when it shall appear to the Auditor of Public
Accounts from the annual report of any such company that the value of the
personal property and cash held and possessed by such company by virtue
of the provisions of this Act, and any amendment thereof. exceeds 10 times
the amount of the deposit aforesaid, he shall require said companies, if in
cities or towns of 100,000 inhabitants or more, to forthwith increase said
deposits to the sum of $500,000 in such securities, and in all cities and towns
of less than 100,000 inhabitants to forthwith increase its said deposit to the
sum of $125,000 in such securities.
Deposit Provisions Cited.
Section 12 provides in substance for the examination ofsuch companies by
the Auditor of Public Accounts and that for the purpose of examination the
Auditor may by summons,subpoena or attachment compel the appearance
and attendance of any person. It provides further that the Auditor may
compel the production, for the purpose of this examination, of any and all
books and papers which may be deemed necessary.
A corporation which is organized for the purpose of accepting and executing trusts in this State is organized under the General Corporation Act.
The General Corporation Act provides, in the organization of such a company, that the declaration of incorporation must set forth the location of its
principal office in this State, giving the town or city, street and number, if
any. (Section 4,subsection 5,General Corporation Act.)
Branch Banks Allowed.
There seems to be nothing in the General Corporation Act nor in the
Trust Company Act which would specifically prohibit a branch office being
established by a trust company. It is true that an ordinary corporation,
formed under the General Corporation Act, may have a branch in this
State, but the right of a trust company with relation to branch offices must
be determined not only from the provisions of the General Corporation Act,
but also from the provisions of the regulatory Act under which it must
qualify before it can actually do business in this State.
You will note from the above quotations from the Trust Company Act
that the size of the deposit to be made by a trust company,organized in this
State, is independent upon the population of the city or town in which it is
located. As is indicated by the declaration ofincorporation ofsuch a corporation, it must be definitely stated that its principal office lain a certain place.
The population of that place will regulate the size of deposit required under
the Trust Company Act, and there is nothing else in the Trust Company Act
which regulates the size of such deposit unless the personal property and
cash held by such company exceeds 10 times the amount of that deposit.
Thus, it apparently is the intent of the legislature in this Act that the population of the city where the principal office of the company is located would
indicate the amount of business which should be protected by this deposit.
It seems to be entirely without the intent of the legislature to say that a
company could be located in a town of less than 100,000 inhabitants, make
a deposit of $50,000, and then have a branch office in a city of more than
100,000 inhabitants. This procedure obviously would be contrary to the
Intent of this statute. It is apparent. too, that the legislature intended that
a trust company should not have a branch office in that it says "each company in all cities and towns shall deposit with the Auditor of Public Accounts, . . ." Thus, it would seem that the legislature had in mind the
proposition that a trust company would be definitely located in only one
city and its deposit would be regulated by the population of that city.
I am of the opinion, therefore, that a trust company, organized with its
place of business in a certain town or city, may not have a branch office in
1
The case of Dona Gaiser, appellant, v. Caroline Buck, appellee" No.
25701, grew out of the failure of the Studebaker State Bank at Bluffton
Dona Geiser,on behalfof herself and all other creditors of the bank,brought
the action against Caroline Buck, a stockholder, and the other stockholders.
to recover the double liability provided by Indiana law.
A suit to enforce the double liability can be brought by either a creditor of
the bank or the receiver, the opinion holds.
Banks Said to Lose on Deposits of West Virginia—
State Treasurer Asserts Required Rate Should Be
Lowered.
Unless the State Board of Public Works is empowered to
lower its rate of interest required on all State deposits,
William S. Johnson, State Treasurer, said recently, he may
have some difficulty depositing between $12,000,000
and $15,000,000 which will be turned into the State Treasury.
A Charleston W. Va. dispatch Dec. 15 to the "United States
Daily" adds:
Legislature now is
He points out that the rate of interest required by the
delegation
2,3,5%. Last spring it was 3% but was lowered at the request of a
of bankers to the present rate, the minimum as specified by the Legislature.
bankers
Virginia
With Call money hovering between 1 M and 2%, West
as required
may go to New York and borrow at that rate instead of 2 %,
on State funds. Thus, in accepting the State deposits, the bankers lose 1
or 1%% on their money, Mr. Johnson said.
made
It was stated by Mr. Johnson that there will be a determined effort
in the Legislature to amend the present banking law so as to delegate to the
Board of Public Works power to establish both the maximum and minimum
rates of interest required on State funds in order that they may meet variable conditions.
Branch Banking Urged for Small Oklahoma Towns—
Banking Commissioner Suggests Changes in Law to
Improve Service in Rural Communities.
The possibility of a change in the laws of Oklahoma permitting county-wide branch banking was placed before the
Oklahoma Bankers Association for "thought and consideration" by the Bank Commisbioner, C. G.Shull, at their recent
convention at Oklahoma City says accounts from that city
Dec. 13 to the United States "Daily" from which we likewise
take the following:
Mr. Shull referred to the fact that there are cities of more than 1.000
population in the State which have no banking facilities, and other towns
where the existing banks are not profitable.
Law Revision Suggested.
These communities, be said, can receive banking service only by permitting the banks in larger cities in the county to operate banch offices. "I
am wondering," he added. "if it is not time to consider changes in our laws
which will provide these smaller communities with banking accommodations,
perhaps permitting county-wide branch banking."
The Bank Commissioner referred to the resolution passed by the American
Bankers Association favoring community branch banking in metropolitan
districts and county branches in rural districts where economically justified,
as evidence of a changing sentiment on this subject.
it is
Profitable banks are safe banks, Mr. Shull declared, adding that
better for a community to pay for a bank's service than to pay for a bank
failure. More attention should be paid to earnings, and unprofitable accounts should be eliminated or put upon a paying basis, he stated.
Mr.
There has been a growing tendency on the part of Oklahoma banks,
bonds
Shull declared, to increase their secondary reserve by investments in
and securities. "The bank that has done this," he continued, "sees the
Dm 20 1930.]
FINANCIAL CHRONICLE
wisdom of not loaning all its lonable funds locally. Rather, it invests a
proper ratio in high-grade securities."
The concluding summary of Mr. Shull's address follows in full text:
3991
"Before the war, railroads in the West were able to pay dividends,
although modest, in a greater ratio to their capital stock than in the
remainder of the United States. This situation has been completely reversed.
"The curtailment of expenditures for maintenance of way and structures
Trade Decline Inevitable.
and
equipment, which has been necessary in the face of reduced income,
In closing I want to say that, in my judgment, in spite of the fact that
present prices on raw commodities are not satisfactory and that economic has proceeded to a point where the necessity for further action along this
conditions are not altogether stable, still there is nothing to be alarmed line cannot be viewed as in the public interest.
"Even with a restoration of general business conditions and traffic
about. The present situation had to come. We had to halt and take stock.
We have been trying, since the war, to reach equitable and stable price volume to a more nearly normal level, it will take the Western railroads a
levels. Our enormous foreign trade has been paralleled by large loans to considerable period to solve the problems which the present situation has
foreign business organizations and foreign governments. We have had a forced upon them, even if more disastrous consequences of the present
stimulated foreign business. Our home trade has been stimulated by in- situation are to be avoided.
tensive advertising and encouragement of installment buying. We have
"We believe the present conditions surrounding the railroad industry in
simply reached the saturation point. People who have bought on the install- the West demonstrate the urgent need of co-operative effort between those
ment plan will simply have to pay up before they can buy more. Surpluses who regulate the railroads, those who operate them and those who use
ofgoods will have to be liquidated before confident buying will again appear. them, in order that an adequate system of transportation for the present
It is generally thought basic commodity prices are fairly well established but and future shall be assured. We most earnestly ask you to give to such
trade recovery will not occur until retail prices have declined adequately to facts as we have presented the weight to which they are entitled in adminiscorrespond with commodity prices and in my judgment retail prices will tering the grave responsibility which Congress has placed upon you
(the
decline. The merchant in your community, who is holding up the prices Inter-State Commerce Commission) in the Inter-State
Commerce Act,"
his goods with the expectation that when recovery does come, that he will
get the old prices for his goods, will be disappointed. A new economic
basis is being established and the merchant who now prices his goods so they
will move and then restocks on the new price level will suffer a smaller loss. E. E. Loomis, President of Lehigh Valley RR. on InThe purging in business and banking which is taking place will leave the
creasing Concern Over Losses in Railroad Revenue
country better,stronger and sounder. The banking situation, as a whole,in
—Asks Relief from Increasing Tax Assessments.
Oklahoma,is sound. Probably more so than at any time during the last 10
years. I can not say we will have no bank failures. On the other hand I do
E. E. Loomis, President of the Lehigh Valley RR. Co., in
not know that we will have any, but, in the Nation at large, we are reaching
interview Dec. 8, outlining his views in connection with
the final washout on bank failures. The percentage of bank failures will be an
the present railroad situation, declared it "unfair for the
much smaller after 1931 than has been the case during the last 10
Years. In
fact in my judgment, they will practically cease.
railroads to be called upon to participate in the expense of
Safety Standard Urged.
constructing new highways over or under railroad lines,"
During my short term of office as Bank Commissioner, my greatest ambition and earnest endeavor has been to raise the banking standards of our and stated that "another relief to which the railroads seem
State system and encourage better managerial policies and put into force entitled is from the constantly growing tax assessments on
sounder loan and investment policies. I believe there is a higher standard of Improvements made
for the benefit of the public, including
bank management, a more intelligent understanding of good
banking
policies existing in this State to-day than ever before, and this being true, improvements as a result of grade crossing eliminations."
the success of our State system is fixed and assured. I
am glad to see a Mr. Loomis also observed that "there should be some fair
growing spirit of State banking pride in this State among the State bankers.
The ambition and endeavor of the Banking Department and of each State regulation imposed upon railroad competitors, such as carbanker should be to see that our State system, as a whole, and each unit riers over inland waterways and highways, comparable with
thereofis operated on such a high standard ofefficiency that our State banks
are profitable institutiqns to their stockholders and safe depositories of the those imposed on the railroads uqder the Inter-State Compeople. I wish to leave the idea of profit and safety with you; the two merce Act." We give herewith Mr. Loomis's statement:
Ideas are essential and indispensable to successful banking.
Increasing concern over the plight of the railroads is encouraging for
the future of the industry. The severe losses in revenue-producing traffic
as a result of the operation of barge lines on toll-free and
Presidents of Western Railroads in Statement to subsidized waterways, the increasing use of unregulated trucksGovernment
and buses
Inter-State Commerce Commission Cites Diffi- on public highways, the building of new pipe lines for carrying oil and
the
gasoline,
and
high
tension
power
lines
reducing
the
nation's
culties of Roads Incident to Inadequate Revenue.
coal
requirements, have brought home to many business men the grave diffiDeclaring conditions surrounding the railroad industry in culties in the situation.
American commerce is dependent upon prompt and efficient railway
the West have reached such a critical stage as to menace
service for its successful operation and the fact that the rail carriers are
the maintenance of adequate transportation, Presidents of and must
continue to be the backbone of the nations transportation service
the principal Western railroads have just addressed a state- Is universally recognized.
At the same time, it is realized that there are several current development to the Inter-State Commerce Commission pointing out
ments which tend to
even more serious the steadily decreasing railway
the existence of an "urgent need for co-operative effort revenues, and whichmake
will eventually result in a lowering of operating
between those who regulate the railroads, those who operate standards and a corresponding decrease in the quality of service. Among
them, and those who use them." The statement declares the more important of these is the constantly increasing rate of taxation,
either through the assessment of direct impost, or in a form
which
forms of competitive, and to a large extent unregulated, rail carriers must raise new capital to pay a heavy proportionunder
of the mot
transportation, which have been or are being developed, of highway grade separations and other public improvements. None of
expenditures produces revenues for the railroads.
"some by Government aid," have prevented the normal these
Various "solutions" present themselves in the emergency, yet objections
growth of freight traffic on railroads and that net operating Immediately are apparent:
1. Advance in Rates.—While rate adjustments in certain directions are
income in the West has been so depleted that for the first
necessary to remove obvious inequalities, neither business nor the ultimate
half of this year it was less than the interest accrued upon consumer is in a position to absorb a substantial
advance in the general
the funded debt of the Western roads, with no margin for rate structure, even if such advance did not have the effect of diverting
more
traffic
those
non-regulated
to
forms
of
transport
which are already
either dividends or surplus.
in keen competition with the railroads.
It is said the statement was not presented to the Inter2. Consolidation of Railroads.—This promises such reduction in operatState Commerce Commission with a view of influencing ing costs as may be obtained through elimination of service and personnel,
the
probable amount of which some students of transportation claim has
decisions in pending cases "but simply to bring these conbeen greatly overestimated. Furthermore, railroad employees assert this
crete facts to your attention that they may be given con- Is no time to talk of increasing unemployment, and that consolidations
sideration." The statement was prepared by the Western cannot be justified by the limited economies which might result. Shippers
also raise the question as to the probable effect upon business through the
Association of Railway Executives, composed of the follow- reduction
in the number of available routes and the elimination of competiing: L. W. Baldwin of the Missouri Pacific; Charles tive service. Under the circumstances consolidation would seem to have
difficulties
ahead.
Donnelly of the Northern Pacific; L. A. Downs of the Illinois
3. Government Ownership.—But
means, first, the taxpayers would
Central; J. E. Gorman of the Rock Island; Carl R. Gray have to bear all the present railroadthis
tax burdens of over a million dollars
of the Union Pacific; A. D. McDonald of the Southern a day, as Government operations are exempt from taxes, and second, the
Pacific; Fred W. Sargent of the Chicago & North Western; States and local communities must assume the entire cost of all separation
of grades of existing railroad crossings of highways, running into hundreds
H. A. Scandrett of the Milwaukee; W. B. Storey of the of millions of dollars. Furthermore, this would leave
us, under our form
of government, with political management, which usually stifles private
Santa Fe, and F. E. Williamson of the Burlington.
initiative, with a constant loss of efficiency and impaired quality of
"We are submitting for your consideration," ?says the service.
The fact that private enterprises must bear the cost of mistakes
statement, "some of the outstanding facts of the present whereas Government agencies have only to excuse them is axiomatic.
Since
political operation of business has never been a success as a national
situation. Among these are:
producer, can American commerce afford this questionable luxury?
dividend
"The present income of the Western railroads has become insufficient
As a suggestion as to what might reasonably be done to eliminate the
to insure the maintenance of adequate transportation for the future.
"Railways in the West as a whole cannot expect to continue constructive severe strain on the credit of the rail carriers without disturbing the
of operation, which is eminently satisfactory to the shipping
programs of capital expenditures in the face of further diminution of their present system
and traveling public, the following is offered:
inadequate revenues.
for the railroads to be called upon to participate in
unfair
First,
it
is
"In no year since 1920 have railways in the West as a whole received
the expense of constructing new highways over or under railroad lines.
earnings equal to a fair return upon the value of their property.
If it were hnother railroad desiring to cross, the new line would have to
"The decline in passenger travel by rail continues to reduce the income
pay the entire expense. Why should not the same rule apply to a new
of the Western lines to a disturbing degree.
highway? The railroads should also receive some relief from the enormous
"The great decline in car loadings of freight in the West continues and
expense
which they are called upon to bear in the elimination of existing
there Is no immediate promise of its restoration to a normal level.
grade crossings made necessary because of the extensive use of highways
by
"Freight rate levels in the West, measured by any standard, fail to
motor vehicles, many of which are in direct competition with the
railroads.
reflect the increase in operating costs compared to the pre-war level to the
Another relief to which the railroads seem entitled is from the
constantly
same extent as in the remainder of the United States.
gnawing tax assessments on improvements made for the
benefit of the
3992
FINANCIAL CHRONICLE
Fou 181.
sidiaries apart from any allowance for good-will or goingconcern value, and that at current levels the stock offers an
exceptional opportunity for investment and profit.
The terms of the syndicate were revealed in a letter
signed by A. P. Giannini, Elisha Walker, L. M. Giannini,
P. C. Hale and James A. Bacigalupi, syndicate managers,
to Transamerica's shareholders inviting their participation
in the Syndicate. The size of the syndicate will be $20,000,000
or such other amount as the managers approve. It will
extend for six months and will be renewable for another six
months at the option of the managers who are authorized
to direct the syndicate and to begin or terminate operations
In part the letter says:
Sixteen Leading New York City Bank and Trust Com- at any time.
While the market value of any stock, as distinguished from its true
Yield
4.664%
of
Basis
on
Selling
pany Stocks
value, may be temporarily affected by the activity of professional short
sellers (for the reason that whenever there are more sellers than buyers the
According to Hoit, Rose & Troster.
price must decline if the sellers insist upon selling at reduced prices), this
The dollar index figures compiled by Horns A. Schapiro, condition
cannot continue where there is no real reason for decline.
SaturThe companies owned by Transamerica are in splendid condition and
of Holt, Rose & Troster, using the opening prices of
are all making good progress. Consequently there is no fundamental
day, Dec. 13, of 16 leading New York Bank and Trust com- justification
for the present market action of the stock. It is understood
The
a
panies, reveal a sharp decline in prices for the week.
that there is at present a large and active short interest in Transameric
in advancing the price of the stock as soon as the
16 institutions used in this compilation are: Chase Na- stock, which will assist
short sellers cover their commitments.
only
tional, National City, Guaranty Trust, Bankers' Trust, ManBelieving that investment in Transamerica at this time will not
the
National,
First
Hanover,
result in profit to the purchasers, but also have a stabilizing effect upon
Central
hattan Co., Irving Trust,
their
in
market, an opportunity is hereby extended to all stockholders
Manufacturers' Trust, Bank of America, Chemical National, own interest, to participate In the syndicate.
New York Trust, Corn Exchange, Chatham Phenix, Public
The stated object of the syndicate is, "to buy and sell
Bank, and Brooklyn Trust. It is further stated:
Transamerica stock with the dual purpose of stabilization
The present yield of 4.664% compares with 4.191% a week ago, 4.087% and profits to syndicate members." The letter of invitation
on
two weeks ago, 8.949% three weeks ago, and with 4.467% obtained
states that "each stockholder is free to come in for such
Nov. 12. The same compilation indicates that the shares of 16 leading
known
times
amount as he may be able and willing to subscribe." Offices
New York Bank and Trust companies are now selling 14.9
ago, and
earnings, which compared with 16.6 a week ago, 17.0 two weeks
the syndicate will be located at 44 Wall Street, New York
on of
15.8 on Nov. 12, the previous low. The ratio of 80.8 was obtained
and 454 Montgomery Street, San Francisco, where
City
April 12, the high for the year to date, and 46.6 on Oct. 14 1929.
checks or money orders for the full amount of stockholders
subscriptions will be received.
Slight Falling in N. Y. City Bank Deposits Shown in
The following is the letter sent to the stockholders:
Dec. 15 1930.
Analysis by Hardman & Aronson—Loans,Discounts
and Investments of 20 Principal Institutions To the Transamerica stockholders;
out of line
Transamerica stock is, in our opinion, selling altogether
Approach Record Figures—Year's Dividends Largand its various subsidiary comcorporation
the
of
with
true
worth
the
est in History.
-concern
panies quite apart from any allowance for good-will or going
Total deposits in 20 of the largest banks and trust com- value. Believing that at current prices the stock offers an excellent oppora group of important stockholders have
panies of N. Y. City, as shown in their published statements tunity for investment and profit,
in Transamerica stock. These stocktrade
and
buy
to
a
formed
syndicate
as of Sept. 24, amounted to $8,985,931,602, a decrease of holders have taken a substantial interest in this syndicate, of which the
$365,021,925 or 3.9%from last year's total of $9,350,944,527, undersigned are members and managers.
value
While the market value of any stock as distinguished from its true
according to a New York bank stock compendium prepared may
activity of professional short sellers
the
by
affected
temporarily
be
by Hardiman & Aronson, members of the Association of (for the reason that whenever there are more sellers than buyers the price
at reduced prides), this conBank Stock Dealers. The shrinkage is ascribed to a decrease must decline if the sellers insist upon sellingreason
for decline.
cannot continue where there is no real
condition and are
in overnight "float" deposits, since the bank statements dition
The companies owned by Transamerica are in splendid
justification
when
month
the
of
week
the
end
fundamental
before
a
fully
no
issued
is
were
all making good progress; consequently there
Is understood that there is at
float deposits are large. Details of the unalysis are furnished for the present market action of the stock. It
a stock which will
present a large and active short interest in Transameric
as soon as the
as follows:
automatically assist in advancing the price of the stock
•
eliminapublic, including improvements as a result of grade crossing
tions, dm. If accorded fair relief in these particulars, the money now used
insure
for such purposes could be devoted to improvements necessary to
adequate service.
Second, to offset traffic losses to other forms of transportation, the
regulatory
railroads should be relieved from the hard and fast rules of
without
bodies and be permitted to initiate rates to protect their business,
jeopardizing other rates.
imposed
Third, it would seem that there should be some fair regulation
highupon railroad competitors, such as carriers over inland waterways,
the
ways, he, oamparable with those imposed upon the railroads under
transportation
Inter-State Commerce Act. At present, those other forms of
public
the
all,
enjoy great advantages over the railroads, upon which, after
must continue to depend for the great bulk of their transportation.
Combined rediscount borrowings of the group totaled $59,623,346. or a
reduction of 39.3% from total borrowings of $98,263,812 last year. This
decrease in Federal Reserve credit is described as a result of increased gold
holdings, which have been used by the banks to reduce their rediscounts.
Notwithstanding the extensive liquidation in the stock and bond markets
during the past year, loans, discounts and investments to-day are well
above the totals of a year ago and close to record figures, the report reveals.
The 20 principal N. Y. City banks show total loans, discounts and investments of $9,382,124,389 compared with $8.467.568,873 in the corresponding
statements of 1929. Investments incre tsed 8553,567.039, while loans and
discounts increased $360.988.477, or a combined increase of $914,556,516.
The tendency on the part of the banks to employ their surplus funds for
direct investments in municipal and other high-grade bond issues was said
to be due Co the inability on the part of business to absorb additional credit.
ands of the 20 banks, which amounted to $1,958.480.388
Total capit
on Sept. 24 1930 were the largest ever recorded, representing an increase
the amount held a year ago.
over
of $139.513,993
Dividends of $137,826,554 paid to shareholders during the year likewise
were the largest In the history of the group. The present record-breaking
increase
total of cash dividend payments, according to the analysis, was an
the
of $27,680.108 or 25.1% over the total of $110,146,446 disbursed in
preceding year. The total number of shares outstanding against the
however,
the
year,
20 banks increased from 28,348,512 to 33.283.012 during
and thereby resulted in lowering the average rate earned per share.
studied,
banks
20
the
of
stocks
of
the
situation
market
In presenting the
closing
the compendium reported the average current yield, based upon the
a
prices of Nov. 13 1930 to be 4.61%, as compared with yield of
market
3.69% on Nov. 13 1929.
short sellers cover their commitments.
this time will not only
Believing that investments in Transamerica at
stabilizing effect upon the
result in profit to the purchasers but also have a
stockholders in their own
market, an opportunity is hereby extended to all
which are substantially
interest to participate in the syndicate, the terms of
as follows;
Giannini, P. C. Hale
Managers; A. P. Glannini, Elisha Walker. L. M.
and James A. Bacigalupi.
syndicate operations as it
Management to have full authority to direct
at any time.
may deem advisable and proper and to commence operations
other amount as the
such
or
820.000,000
be
to
syndicate
of
Amount
managers may approve.
of renewal for additional
Syndicate to run for six months with privilege
six months.
with the dual purpose of
Object to buy and sell Transamerica stock
stabilisation and profit to syndicate members.
to such of their friends as
Participation open to all stockholders and
may be acceptable to the syndicate managers.
amount as he may be able
Each stockholder is free to come in for such
and willing to subscribe.
in and signing the enclosed subSubscriptions are to be made by filling
together with check or money
scription blank and mailing it without delay Transamerica syndicate, 454
order for the full amount of subscription to
California or 44 Wall St.. New York.
Montgomery Street, San Francisco,
N.Y.
and ask
We shall be glad to have you participate with us in this syndicate
matter.
the
in
decision
your prompt
Respectfully yours.
A. P. Giannini,
Elisha Walker,
L. M. Giannini,
P.0. Hale,
James A. Bacigalupi.
Syndicate Formed to Buy and Trade in Stock of Transamerica Corp.—Elisha Walker and A. P. Giannini
and Associates Form $20,000,000 Pool.
It was made known this week that a syndicate had been
formed on Saturday last by a group of important stock- Car Works and Shopmen of Illinois Terminal Co. Seek
Eight-Hour Day.
holders of Transamerica Corp. for the purchase of Transamerica shares in the market and that an invitation has been
The "Wall Street Journal" of Dec. 9 reports the following
sent to all shareholders offering an opportunity to participate from St. Louis:
Co.
on terms identical with those applying to the original
A plea by street car operators and shopmen of the Illinois Terminal
wage
sponsors of the syndicate. It is stated that the formation of for a reduction in number of working hours with retention of present
an
request
a board of arbitration. The workers
the syndicate is not an action of the corporation but of a scale is being heard byof
pay of present 9%-hour day, which is equivalent
basis
on
eight-hour
day
market
The present
group of individuals who believe that the present
to an increase in pay of approximately 10 cents an hour.
price of Transamerica shares is substantially out of line working contract expired last April and wage scale has been been in dispute
with the true worth of the corporation and its various sub- since,
•
DEC. 20 1930.]
•
FINANCIAL CHRONICLE
3993
Still another Arkansas bank, the Clark County Bank at
Canadian Pacific Recalls Shopmen.
In its Dec. 8 issue, the "Wall Street Journal" carried the Gurdon, with deposits of $184,322, closed its doors yesterday, Dec. 19,as reported in Little Rock advices by the United
following Montreal item:
Press
on that day.
The Angus shops of Canadian Pacific Ry. have recalled 550 former
In the State of Kentucky the Farmers' Bank of Fulton,
employees for repair work. Addition of 550 men to force at Angus shops is
explained as a further effort of company to relieve unemployment this Ky., which closed Nov.
26 because of heavy withdrawals, rewinter, in accordance with wishes of the Federal Government. Despite
general unemployment in Canada, number of men now working at Angus opened on Dec. 16 with the approval of the State Banking
shops is greater by 650 than year ago
Department, according to Associated Press advices from
Fulton on that date, which went on to say:
Depositors have agreed to a deferred payment plan to conserve assets,
Status of Employment at Shops of Rock Island Lines.
but Christmas savings will be distributed immediately. The bank has
The following from Chicago appeared in the "Wall Street deposits of $395.000.
Journal" of Dec. 1:
Offsetting the opening of the Fulton bank, however,
Shops of Rock Island lines which were re-opened on Nov. 17 will remain advices by the Associated Press from Sturgis, Ky.,on
Dec. 17
open during the first two weeks of December, thereby giving continued
reported that the Bank of Sturgis had failed to open on that
employment to about 2,100 shopmen during that period. The management
hopes to operate shops at least four weeks out of every six during the winter. day. The last statement of the bank, the dispatch said,
showed capital of $15,000, deposits of $386,514 and resources
State Sales Tax Disapproved by Ohio Committee— of $468,838.94.
In North Carolina two small banks closed their doors on
Proposal Is Described as Entirely Unsuited to
Monday, Dec. 15, namely, the Bank of Mars Hill at that
American Conditions and Unfair to Merchants.
place and the Farmers' & Traders' Bank at Weaverville.
Declaring that if a State sales tax were enacted in Ohio, Associated Press dispatches
from Mars Hill and Weaverthe merchant would be compelled to devise means "of vine, respectively, reporting
the closures, stated that the
quickly transferring this tax to his customers or face bank- action had been taken by
the directors to protect the deruptcy," the Sub-Committee on retailing of Governor positors. The bank
at Mars Hill had combined capital and
Cooper's Taxation Committee has urged that the Committee surplus
of $34,000 and deposits of approximately $163,000.
"drop sales taxing as a possible source of revenue in this
Deposits of the Weaverville institution were given as
State." Columbus (Ohio) advices Dec. 6 to the "United $361,000 and its resources
as $408,000.
States Daily" indicating this added:
On Tuesday, Dec. 16, in the same State, eleven banks
"Ohio cannot afford to experiment with a system which our Investigation indicates is entirely unsuited to American conditions," the subcommittee closed their doors. According to an Associated Press disdeclared.
patch from Charlotte, N. C., on that day the closed instiIn Kentucky the rate of the retail sales tax Is 1% the report says. This tutions included four banks in Gaston
County, four in the
Is the only State thus far to attempt to raise any considerable portion of its
revenue through retail sales taxing, it continued and "Pennsylvania, Asheville area of western North Carolina, one in Cleveland
with an unscientific system which is called a sales tax,raises less than 1% of County, one in Johnston County and one in Bertie County.
Its total revenue through Its mercantile license tax, and West Virginia,
The institutions were the First National Bank of Gastonia,
which has a general sales tax, raises less than 1% of its gross tax needs
the Gaston Loan & Trust Co., Gastonia; Bank of Dallas at
through its impost on retail sales."
"This reasoning indicates then," the subcommittee declared, "that if Dallas; People's Bank of West Gastonia (all in
Gastonia
Ohio expects to obtain any real tax relief through a sales tax, 1% would
be the lowest rate worthy of consideration." Authentic figures show that County); the Clayton Banking Co. of Clayton; the Bank
our best retail stores produce an average net profit of less than 1% of of Aulander; People's Bank of Waco; the Bank of Franklin
their gross retail sales, the report says.
at Franklin; the Bank of Swannanoa at Swannanoa; the
A Federal sales tax would be less objectionable than a State tax, It was
contended. "A Federal sales tax would place all retailers en the same basis Bank of Fletcher at Fletcher, and the Bank of Clyde at
and eliminate all of the hardships of extra-State competition. That of mail Clyde. We quote from the dispatch, which appeared in
order and consignment houses, which would not be subjected to an
Ohio the New York "Herald Tribune" of Dec. 17, as follows:
State tax, is not the least of these.
The First National Bank of Gastonia was the largest of the eleven, with
"Under a Federal sales tax the competitive positions of merchants
in
cities near the border, such as Cleveland, Toledo, Youngstown, Cincinnati, deposits of $3,066,072 on Sept. 24. The People's Bank of Waco,in Cleveland County, with capital of $5,000 and resources of $111,338, shut its
Steubenville, &c., would not be jeopardized."
doors. The Clayton Banking Co. of Clayton, capitalized at $75,000 and
with resources of $393,731, did not open. The Bank of Au!ander, in Bente
County, with capital of$80.125 and resources of$385.896. also did not open.
Banking Situation in South and Middle West.
The other three Gaston banks, the Gaston Loan & Trust Co. of Gastonia,
Dallas and the People's Bank of West Gastonia, were comthe Bank
On Wednesday of this week, Dec. 17, the Arkansas State paratively of
small institutions. The combined deposits totaled $270,052.
Banking Department announced the closing of twelve
The closing of the Bank of Franklin. in Macon County. left that town
without a financial institution. The bank's deposits were listed at $416.000.
banks in northwest Arkansas on that day, according to a The
Citizens' Bank, which merged with the Franklin last month, had dedispatch by the Associated Press from Little Rock on that posits of $125,000. The Bank of Swannanoa, with deposits
of $182.000,
Bank of Clyde, with deposits of $105.000, failed to open after withand
the
date. Ten State banks in the group were placed in charge
standing "runs" yesterday. The Bank of Fletcher, in Henderson County,
of Walter E. Taylor, State Bank Commissioner, and two closed in the face of heavy withdrawals after remaining
open an hour and
National banks were turned over to the United States Comp- a half. Its deposits were listed at $103,500.
troller. Mr. Taylor was reported as saying that A. T.
Hudspeth of Harrison, Ark., a director of the closed American Exchange Bank & Trust Co. of Little Rock, had an
interest in eleven of the banks closing on the 17th. Mr.
Hudspeth's connection with the Little Rock bank, Mr.
Taylor declared, caused heavy withdrawals from the others.
Two of the closed banks, the dispatch said, are at Harrison,
Ark. These are the Citizens' Bank & Trust Co., the largest
in the group, and the First National Bank. Mr. Hudspeth
is Vice-President of the former and President of the First
National Bank. As of Sept. 24 the institutions had deposits
of over $3,000,000 and their total capital and surplus then
were given as over $380,000. The dispatch named the
other banks closing as follows: American Exchange Bank,
Leslie; First National Bank, Eureka Springs; Bank of Leadhill, Leadhill; Bank of North Arkansas, Everton; Citizens'
Bank, Yellville; Bank of Alpena Pass, Alpena Pass; Citizens'
Bank of St. Joe; Marion County Bank, Flippen; the Bank
of Pyatt at Pyatt, and the First State Bank at Marshall.
Again, on Thursday, Dec. 18, three more Arkansas banks
were closed, according to Little Rock advices by the Associated Press on that day. The institutions were
the
People's Bank at Berryville, and the Farmers'& Merchants'
National
First
and
Bank,
Bank
both of Green Forest.
The re-opening of a small Arkansas bank, the Bank of
Centerton at Centerton, was announced by the State Bankng Department, according to Associated Press advices from
Little Rock, Sunday, Dec. 14. The institution was one of
those suspended last month, it was stated.
Again, the next day (Dec. 17) Associated Press advices
from Raleigh, N. C., reported the closing of four more
North Carolina banks, namely, the Citizens' Bank of
Burnsville; the Scotland County Savings Bank, Laurinburg;
the Bank of Weldon at Weldon, and the Weldon Bank &
Trust Co. The Burnsville institution, the dispatch stated,
had combined capital and surplus of $112,000 and deposits
and resources, according to its last statement, of $391,872
and $507,608, respectively. The Scotland County Savings
Bank, of which Representative unto James is President,
had deposits of $217,000, while the combined deposits of
the two Weldon banks totaled slightly more than $500,000,
it was noted.
On Thursday, Dec. 18, another Laurinburg, N. C., bank,
the First National Bank, was reported closed in United
Press advices on that day from Laurinburg. This dispatch stated that the Scotland County Savings Bank of
Laurinburg had closed at the same time, and that Representative Hinto James of the 7th District, was President of
both institutions.
Still another North Carolina bank, the First National
Bank of Lenoir, failed to open for business yesterday, Dec.
19, according to an Associated Press dispatch from that
place, which stated that W. J. Lenoir is President and
Edward F. Allen, Cashier, of the institution, which is
capitalized at $50,000 and has deposits, its officers said, of
approximately $450,000.
Yet another North Carolina bank, the Savings Bank &
Trust Co. of Elizabeth City, closed its doors yesterday,
3994
FINANCIAL CHRONICLE
FoL. 131.
C. Rose, and
Dec. 19. An Associated Press dispatch from that place on K. Boday, William R. McAlpin, Cornelius
Jr.
m
Benschote
H.
Van
William
said:
re
furthermo
closing,
the
Dec. 19 reporting
Future action will be governed by the State Board of Bank Examiners,
New quarters for three Manhattan offices of the Central
it was said. P. S. Williams is President. Officials said that the bank
was solvent.
Bank & Trust Co. of New York, will be opened on
Hanover
liabilities
The bank, which is an institution capitalized at $100,000, has
The Herald Square Office, now at 20 West 36th
22.
Dec.
amounts
money
borrowed
of $1,094,225. Loans amount to $925,630 and
be located in the new 16-story building on the
will
Street,
said.
officials
to $193,750, the State
week,
Avenue and 35th Street. The 260 West
of
Sixth
corner
A small South Carolina bank also suspended this
will move to the new 17 story building at
York,
office
Broadway
from
Press
Associated
the
by
as reported in advices
Street. The 97 Warren Street office
Franklin
and
Clover,
Church
of
Bank
S. C., on Dec. 16. The institution was the
supply department
in York County, with resources of approximately $650,000. and the Central Hanover purchase and
Jay and Greenat
building
13-story
of
the
new
will
Bank
occupy
National
First
the
J. Lee Robinson, President of
unit offering
banking
a
is
complete
office
Each
16
wich
Street.
Dec.
day,
Gastonia, N. C., which failed to open the same
trust services, and
facilities,
banking
foreign
bank,
and
domestic
Clover
the
of
also
President
is
(as noted above),
safe deposit vaults safeguarded by the newest protective
the dispatch stated.
, Assistant Vice-President, is in
In the State of West Virginia the Union National Bank devices. W. R. Hanrahan
office, George K. Boday, is
Square
Herald
of
the
Faircharge
to
according
16,
Dec.
on
of;Fairmont closed its doors
Street office, and Paul
and
Franklin
Church
the
of
which
Manager
date,
mont advices by the Associated Press on that
Treasurer, manages the Jay and GreenAssistant
to
Newton,
enough
rapidly
assets
liquidate
to
inability
that
stated
H. A. Trautmann, Assistant Vicemeet demands for withdrawals was given as the cause of wich Street office.
purchase and supply department,
the
heads
CharlesPresident,
the closing. An Associated Press dispatch from
122 Greenwich Street for the past
at
the
located
been
that
has
which
reported
16)
(Dec.
date
same
the
ton, W. Va., on
announced
years.
five
had
West Virginia State Banking Department
on that day the closing on Dec. 12 of the Bank of Hillsboro
The board of directors of Empire Trust Co. have declared
in Pocahontas County, "'to conserve assets,' and added a regular quarterly dividend of 3%, or 60 cents per share,
being
were
that negotiations for taking over the institution
and an extra dividend of 3%, or 60 cents per share, on the
made by the Bank of Marlinton."
stock of the company, payable Jan. 2 1931 to stockcapital
the
e,
Straitsvill
In Ohio the Martin State Bank of New
of record at the close of business Dec. 19 1930. The
holders
on
open
only banking institution in the place, failed to
transfer books will not be closed.
New
from
advices
Press
Associated
Dec. 17, according to
Straitsville on the same day. The closed institution was
At the regular meeting of the board of trustees of the Title
capitalized at $25,000 and had resources of $205,000, the Guarantee & Trust Co. of New York on Dec. 16 1930,
dispatch noted.
Thomas J. Kappock and Arthur C. Damsgaard were elected
The closing on Dec. 16 of an Indiana bank, The Trust & Assistant Secretaries of the company, and Franklin C.
Savings Bank at Rensselaer, Ind., was announced on Healy an Assistant Treasurer. Mr. Kappock is located at
Dec. 17, according to a dispatch by the Associated Press the Mid-town Office at 6 East 45th Street, Mr. Damsgaard
from Indianapolis, which stated that the institution was at the main office, 176 Broadway, New York, and Mr.
capitalized at $100,000 and had deposits of $830,000.
Healy at 175 Remsen Street, Brooklyn, N. Y.
Again in Indiana three banks closed on Dec. 19. These
banks, according to United Press advices from Indianapolis
Stanley P. Jadwin, well-known in the wholesale drug
on that date, were the American Trust & Savings Co. of trade, has been elected a director of the New York Title
of
Bank
State
Richmond, deposits $500,000; the Central
& Mortgage Co. Mr. Jadwin's connections will be of
Whiting, deposits $730,000, and the State Bank of Brook, great benefit to this company in its further development of
deposits $435,000.
the National Title Insurance Department. Mr. Jadwin is
In Illinois the Ina State Bank at Ina, Ill., a small insti- President of the 0. H. Jadwin Sons, Inc., Vice-President of
tution capitalized at $25,000, was closed on Dec. 15, accord- the American Home Products, director of Drug Inc., direcing to an Associated Press dispatch from Chicago on that tor of the Bayer Co., Inc., and President of the Sterling
date.
Remedy Co. He is also a director of the Dime Savings
Another Illinois bank, the First National Bank of Sesser, Bank of Brooklyn and the Brooklyn Union Gas Co.
since
capitalized at $25,000 and the only bank in the place
the closing of the Sesser State Bank two years ago, failed
Following his resignation on Dec. 10 as President of the
to open the previous Saturday, Dee. 13, according to As- Lyons Falls National Bank, Lyons, N. Y., George C. Cannon
sociated Press advices from Sesser on Dec. 14.
was arraigned at Lowville, N. Y., on Dec. 11 for alleged
Still another bank in Illinois, the Jefferson State Bank at grand larceny, first degree, and forgery, third degree, in
yesterMount Vernon, with deposits of $741,000, was closed
connection with defalcations at the bank. An Associated
day, Dec. 19, to protect its depositors, as reported in Press dispatch from Lowville, on Dec. 11, and published
day.
that
United Press advices from Little Rock on
In the New York "Herald Tribune" on Dec. 12, reporting
A small Missouri bank, the Farmers' Bank of Bellflower
the matter, continuing, said:
reported
was
State,
that
at Liege, Montgomery County,
Cannon, President of the banking institution since its organization five
Jefferson
closed in a dispatch by the United Press from
years ago, pleaded "not guilty" to the charges at the arraignment before
City, Mo., on Dec. 13.
Milton Carter, County Judge. The charges were covered in a sealed indictLewis County Grand Jury last week.
Subsequently, Dec. 18, Jefferson City advices by the ment returned by the
Everett Hughes, former Cashier of the bank, after admitting that he
banks
Missouri
more
three
that
reported
Press
Associated
staged an imaginary hold-up at the same bank Sept. 12 last, was sentenced
had closed on that day and had been placed in the hands of Dec. 4 by Judge Carter to serve from five to eight years in Auburn prison.
the
were
He pleaded "guilty" to a charge of grand larceny covering the theft of
the State Finance Department. The institutions
of
$37,882 from bank funds.
resources
with
City
Monroe
at
Union Savings Bank
Arthur Davis, Vice-President, has been acting President of the Lyons
of
$445,095; the State Bank of Collins, with resources
Falls Bank since the resignation of Mr. Cannon as President. For the
represent, it was said by District Attorney Maloy, the institution will remain
881,046, and the Bank of Osage County at Linn, with
under the supervision of Mr. Davis and the directors, no plans having been
sources of $244,155.
made for reorganization.
ITEMS ABOUT BANKS, TRUST COMPANIES, &c.
At the meeting of trustees of the Central Hanover Bank
& Trust Co. of New York, an extra dividend of $1 per share
and the regular quarterly dividend of $1.50 per share on the
$20 par value capital stock were declared, payable Jan. 2 to
stock of record Dec. 20. Basil Hwoschinsky, William A.
Eldridge and Alfred M.Ellinger were elected Vice-Presidents.
The following were appointed Assistant Vice-Presidents:
John B. Henneman, Louis F. Timmerman, John C. Higbee,
Peter Van Brunt, Porter L. Willett, Orlando M. McCullouch, and Williston J. Farrington. Joseph C. Harris and
William B. M. Carr were appointed Assistant Secretaries.
The following were appointed Assistant Treasurers: Irving
B. Ahrens, William Benzinger, William A. Higgins, George
The National City Bank of New York on Dec. 15 opened
its forty-eighth branch in Greater New York. The new
unit, located at Seventh Avenue near 23d Street, will be
known as the Chelsea Branch and will offer the full banking,
investment, trust and safe deposit facilities of the worldwide National City organization.
Former Governor Alfred E. Smith, Chairman of the Board
of the County Trust Co. of New York, announces that the
directors to-day declared an initial quarterly dividend on its
new and enlarged capital stock, of thirty cents per share
payable Jan. 2 1931, to stockholders of record at the close of
business, Dec. 23 1930. This rate represents a reduction in
the dividend rate as compared with the rate paid heretofore,
U
DEC. 20 1930.]
FINANCIAL CHRONICLE
3995
on the old stock. The bank recently moved into its own in this fund are from all parts of the city, and though all had received their
banking quarters in the new County Trust Building at Four- checks inquiry developed that but comparatively few had been cashed up
to Saturday
teenth Street and Eighth Avenue, and elected One R. Kelly,
Horvatt has also conducted for many years the State Steamship and
formerly Vice-President of the American Trust Co., as Tourist Agency, with principal office in the central city business section.
has been treasurer of the Greek Catholic Union for six years and officials
He
President. It is stated that the directors believe its dividend of the
order with central office in Homestead, Pa.,stated to-day that funds
should be reduced to correspond with the reduction in earn- of the order to his credit total around $1,000,000. All of these funds were
ings which banks must expect during the ensuing year, by not deposited in his own bank.
A subsequent dispatch from Binghamton by the Assoreason of the lower interest rates now prevailing. Since
moving into its new banking quarters, the institute has ciated Press, Dec. 17, contained the following:
A state Bantam, Department official announced to-day (Dec. 17) that
opened 486 new checking accounts representing over $5,000,closing of the State Bank of Binghamton Monday was due to systematic
000 of new deposits. The directors also voted a Christmas looting
of the institution over a period of nearly seven years,and not because
bonus of 5% to officers and employees, following its policy of business conditions.
Practices which brought about the closing of the bank have been going on
of previous years. Kenneth O'Brien of the law firm of
1922 or 1923. The officials said the looting was carried on with the
O'Brien, Boardman, Conboy,Memhard and Early was elect- since
knowledge, or part knowledge, of three or more employees.
ed a director.
Church and charitable institutions and orphans are among the heaviest
losers in the crash.
I .
Julian S. Myrick, Manager of the Mutual Life Insurance
The stockholders of the Boston National Bank, Boston,
Co. of New York since 1909, has been elected a director of
the Empire Trust Co. of New York. He was formerly Mass., have approved the plan of consolidation with the
President of the National Association of Life Underwriters Continental National Bank of that city, which will become
upon final approval by the Comptroller of the Curand of the New York State Life Underwriters Association. effective
rency, according to Boston advices Dee. 18 to the New York
C. W. Koren, President of the Underwriters Trust Co., "Journal of Commerce." An item with reference to the
and R.L.Bigelow, President of the Eastern Exchange Bank, proposed merger of these institutions, under the title of the
on Dec. 17 made the following joint statement, according to Boston-Continental National Bank, appeared in our Nov. 1
issue, page 204.
the New York "Times" of Dec. 18:
"The business of the Eastern Exchange Bank has been consolidated with
The Fiduciary Trust Co. of Boston announces the removal
that of the Underwriters Trust Co.. which will continue to operate the office
of the Eastern Exchange Bank in the premises now occupied by it as an of its office on Dec. 15 1930 to the Atlantic National Bank
office of the Underwriters Trust Co.. as of Dec. 18 1930.
Building, 10 Post Office Square, that city.
The
present officers of the bank will continue to act as representatives
of the trust company, and the larger resources and facilities of the trust
company will be at the service of depositors and customers of the bank."
The directors of the Central Trust Co., Cambridge, Mass.,
have declared the regular quarterly'dividend of 7/
1
2%, payAnnouncement was made yesterday (Dec. 19), by Joseph able Jan. 2 to stock of record Dec. 24, according to the BosA. Broderick, New York State Superintendent of Banks, ton "Herald" of Dec. 5, which furthermore said:
that he had on that day taken possession of the State Bank
Last year the quarterly dividend was 5% regular and 254% extra. This
of Canastota, Canastota, N. Y., according to advices from dividend declaration establishes the stock on a 30%, or $3, basis, Par
that place by the Associated Press yesterday, which quoted value of the stock is $10.
Mr. Broderick, as saying:
Approval of a proposed consolidation of the West Haven
"Material losses on loans and investments have impaired tho condition of
the bank and rendered it advisable that this action be taken now in order Bank & Trust Co. of New Haven, Conn., and the Home
to conserve the assets thereof in the interests of all the depositors.
Bank & Trust Co. of the same place, was announced by
"Milton L. Masson. an examiner of the banking department has been
their respective directorates on Dec. 12, according to advices
appointed special Deputy Superintendent in charge.
"The Superintendent of Banks Is informed that neighboring banks ex- by the Associated Press from New Haven on Dec. 12, which
pected to render assistance in this situation by making substantial loans
went on to say:
against the net claims of depositors when such claims are properly
authenticated.
"On the date of the last quarterly statement submitted by the bank to the
Banking Department on Sept. 24 1930. the figures were reported as follows;
Capital, $60,000; surplus and undivided profits, $89,676; gross deposits,
$1,117,914."
The State Bank of Binghamton, Binghamton, N. Y., an
institution with deposits of $1,261,449 located in the foreign
section of the city, was taken over by the State Banking
Department on Monday of this week, Dec. 15, following
the mysterious disappearance of its President and Cashier,
Andrew J. Horvatt. Associated Press advices from Binghamton on Dec. 15, reporting the closing, contained the following
statement issued by Joseph A. Broderick, State Superintendent of Banks:
The approval of the stockholders of both concerns is now needed to effect
the merger State Banking Commissioner Lester E. Shippee is reported to
have approved the move. The combined institutions will have resources
of $4,145,000.
Probability that the West Springfield Trust Co., West
Springfield, Mass., which was closed Dec. 12, and is now
in the hands of the State Bank Commissioner, would resume
business before Christmas with the bank still in control of
West Springfield interests, was expressed on Thursday of
this week, Dec. 18, by Horace A. Moses, President of the
institution, according to Associated Press advices from
Springfield on that day.
The following letter, under date of Dec. 13, with reference
to the liquidation of the Bank of Philadelphia & Trust Co.,
now in process by the Bankers' Trust Co. of Philadelphia,
was sent to the stockholders of the former institution. (The
Bank of Philadelphia & Trust Co. was consolidated with the
same
date,
a dispatch to the New York "Herald- Bankers' Trust Co. of Philadelphia in July last, as noted in
On the
the "Chronicle" of July 26, page 580.)
Tribune"from Binghamton, said in part:
Serious irregularities have come to our attention and the bank has been
closed this morning (Dec. 15) in order to permit a complete investigation
and to conserve the assets in the interests of all depositors.
The last quarterly statement submitted by the bank to the department,
as of Sept. 24 1930, indicated the following condition; capital $100,000;
surplus and undivided profits $266,554, and gross deposits $1,261,449.
Four investigations are under way to-night into the collapse of the State
Bank of Binghamton and the mysterious disappearance of the president,
cashier and organizer of the institution. Andrew J. Horvatt. They are
being conducted by the State Banking Department, local police, District
Attorney's office and officials of the Greek Catholic Union of the Russian
Brotherhood of America, of which organization Horvatt was Treasurer.
Joseph A. Broderick. State Superintendent of Banks, was called into the
case by officers of the Binghamton Clearing House Association following a
conference with Horvatt, which continued all day Sunday and until
1 o'clock Monday morning, when the association officers came to the conclusion that the Horvatt bank's affairs would not be taken over by the
other banks of the community.
Horvatt was seen entering his bank again at 2 a.m. and investigation has
revealed that at that time probably he retrieved personal securities from
the bank's vaults. He left a note addressed to Thomas J. Mangan,Attorney
and First Vice-President fo the bank, In which he set forth that no employee
of the bank was guilty of any misappropriation of its funds
No official statement is forthcoming as yet, but it is understood that the
shortages may reach close to 81.000,000. The assets of the bank, as shown
by the State examination as of Sept. 24, were listed at $1,880,797.48. Local
bankers stated to-night that the collapse is complete.
The Horvatt bank is located at 81 Clinton St., In the heart of the city's
foreign section. Men and women, mostly of Slovak extraction, who had
their entire savings in the bank of one of their own race, milled about the
street in front of the bank throughout the day, but disorder was prevented.
This bank conducted one of the few Christmas clubs in the community,
with 3,050 members who had deposited a total of $125.500. The depositors
To Stockholders of Bank of Philadelphia & Trust Co.:
Liquidation of Bank of Philadelphia & Trust Co., as undertaken and
being conducted by Bankers' Trust Co. of Philadelphia for your benefit,
has proceeded to a point where it is possible to give you information to
which you are entitled.
At close of business July 21 1930, acting under the agreement, Bankers'
Trust Co. paid indebtedness of Bank of Philadelphia & Trust Co. then owing
to banks and assumed its entire deposit liability. For this aU assets of
Bank of Philadelphia & Trust Co. then standing on its books at $23,655,727.20, were delivered to Bankers' Trust Co. as collateral security for
a loan of $17,962,247.82—the amount being exactly equal to the deposits
and bank indebtedness of your company at that time.
Since then assets of Bank of Philadelphia de Trust Co., as SO pledged
with Bankers' Trust Co., have been sold or otherwise converted into cash,
in accordance with the agreement between the two companies, so that the
Indebtedness to Bankers' Trust Co. has been paid down to $10,118,895.17.
Book value of the remaining assets of Bank of Philadelphia & Trust Co.
total $15,186,995.55. They consist of securities, loans upon collateral,
mortgages, real estate, and commercial paper. While the greater part of
these assets are good, many, however, are of doubtful value. Time will be
required to liquidate to advantage these assets.
All that shall be realized out of the yet remaining assets, after first
meeting the amount still due Bankers' Trust 0o., and thereafter satisfying
such other liabilities as Bank of Philadelphia & Trust Co. may have, will
come to you as stockholders. What this will be cannot be known until the
liquidation ia completed. However, because of what has been accomplished
3996
FINANCIAL CHRONICLE
already, and with information we have in the way of real estate appraisals
and as to loans, we feel that Bank of Philadelphia stockholders will come
out in the end better than for a time appeared at all possible.
BANKERS' TRUST CO. OF PHILADELPHIA,
SAMUEL H. BARKER, President.
Approved:
BOARD OF DIRECTORS, BANK OF PHILA. & TRUST CO.
(Now acting as North Philadelphia Advisory Committee of Bankers'
Trust Co.)
CHARLES E. BEURY, Chairman.
[VoL. 131.
Mr. Boyce said the American Trust would continue its separate existence.
The consolidation is the eleventh for the Union Trust in six years and
the fourth this year.
Purchase of the Asheville Industrial Bank and the Biltmore
Industrial Bank by the Morris Plan Bank of Asheville, N. C.,
is announced by the Industrial Finance Corporation. The
purchase unites the three largest industrial banks of Asheville into a single unit with resources of $500,000 to operate
as a subsidiary of the Richmond Morris Plan Bank. Resources of the Richmond Bank now exceed $17,000,000.
Harmon A. Miller, Asheville business man, will be President
of the new institution. James T. Maddrey was named
Executive Vice-President.
Net profits of the Girard Trust Co. of Philadelphia for
the fiscal year ending Nov. 29 1930, were $2,304,245.59. In
the face of general depression prevailing this year, they
were exceeded only by the unusual record of 1929, according to the report of Albert A. Jackson, President of the
company, made at the annual meeting of the shareholders
The Guardian Detroit Union Group, Inc., Detroit, Mich.,
on Dec. 15. As of Nov. 29 1930 the company's statement declared an extra dividend of 30 cents a share on Dec. 15,
showed:
in addition to the regular quarterly dividend of 50 cents a
Total assets
$94,274,823.29 share. Both extra and regular dividends will be paid on
Capital
4.000 0000.00
Surplus
16.006.000.00
Undivided profits
2,298,471.35
Deposits
71.238,401.42
Individual trust funds
806,618,429.35
Face value of trusts under deeds of trust or mortgages
executed by corporations to the company as trustee,
to secure issues of corporate bonds, including equipment trusts, itc
$1,521,115,390.45
In his report, Mr. Jackson said, in part:
"It will be remembered that the fiscal year ended Nov. 30 1929 produced earnings greater than those of any prior period, and that in the
report submitted to you it was intimated that the factors of high rates
for money that had so largely contributed to this result might not obtain
in the succeeding 12 months. The justification for this suggestion has
been apparent in your fiscal year now ended.
"It is with gratification, therefore, that your management is able to
report the earnings stated above, which, although substantially less than
those of the prior year, are larger than those of any other annual period.
"The recovery in the stock market that followed the acute depression of
the autumn of 1929 has mit been sustained, but notwithstanding this your
investment securities stand upon your books in a total materially below
that commanded for them upon the exchanges.
"When in 1901 your company assembled the properties at the Northwest
corner of Broad and Chestnut Streets it acquired sufficient area to permit
the erection of the Morris Building on Chestnut Street to the West of its
banking house. In 1925 the South Penn Square holding was utilized by
the erection of an addition to your banking house, eight stories in height
but with foundations and structural steel that would support additional
floors should they be needed in the future. Thus your company becomes
possessed of the commanding corner at Broad and Chestnut Streets with a
wing on South Penn Square, but lacked for the rounding out of its holdings
the Broad Street corner at South Penn Square, which was in other ownership. In the spring of 1930 it became possible for your company to purchase this corner at a price that seemed to your Board of Managers to be
proper, and its acquisition then accomplished has enabled the carrying
forward of the intention that had been existent for some years, and for
which the addition on South Penn Square was architecturally designed, to
erect a building that should provide space to house the growing activities
of your company and to produce revenue from additional rentable area.
"This plan is now in consummation. At midnight of Oct. 31 last, the
razing of that structure which occupied the corner was commenced and
it has now progressed to a stage that should permit the beginning of the
erection of the new building in a few weeks. This structure will heighten
the existing addition to your present banking house and will cover the
ground at the corner. It will be 30 stories high, the last four of which
will be set back from the face of the lower walls. It will rise 400 feet
from the level of the street, and will have light and air upon all four
sides of the floors available for renting to tenants. The necessities of
your expanding business demand that the lower floors, connecting directly
with your present offices, shall be occupied by your staff, thus affording
better facilities for working and for the accommodation of clients. The
structure will be of the marble of which is built your present banking
house, to which the lowest courses will conform architecturally.
At a meeting of the directors of Integrity Trust Co. of
Philadelphia, held Dec. 8, a special Christmas dividend of
5% (50c. per share) was declared, payable Dec. 15 1930,
out of the net earnings for the year 1930, to stockholders
of record Dec. 8 1930. The directors also declared the regular quarterly dividend of 10% (one dollar per share), payable Jan 2 1931, to stockholders of record Dec. 20 1930.
by the United Press from Tyrone,
According to a dispatchPa., printed in the "Wall Street Journal" of Dec. 13, the
doors of the Farmers' Merchants' National Bank of that
place were ordered closed by its directors, pending an audit
of the institution's funds by the United States Comptroller
of the Currency. The dispatch added:
The board of directors and stockholders said depositors will be paid 100
cents on the dollar.
Jan. 2 1931 to stockholders of record Dec. 22 1930. The
Guardian Detroit Union Group, Inc. is an association of
23 banks and trust companies serving, it is stated, over
500,000 customers throughout the lower Michigan peninsula.
Members of the group are: Guardian Detroit Bank, National Bank of Commerce, Highland Park State Bank,
Michigan Industrial Bank, Jefferson Savings Bank, Grosse
Pointe, Bank of Hamtramck, Bank of Dearborn, Union
State Bank, Dearborn, Bank of Commerce, Dearborn;
Trenton State Bank, Union Guardian Trust Co. and Highland Park Trust Co., all in the Detroit metropolitan area;
City National Bank & Trust Co., Battle Creek; Union
Industrial Trust & Savings Bank, Flint; Grand Rapids
National Bank; Grand Rapids Trust Co.; National Bank of
Ionia; Union & Peoples National Bank, Jackson; First
National Bank & Trust Co., Kalamazoo; Capital National
Bank, Lansing; City National Bank & Trust Co., Niles;
First National Trust & Savings Bank, Port Huron, and
Second National Bank & Trust Co., Saginaw.
the
The new 16-story building of
Union Industrial Trust &
Savings Bank of Flint, Mich., was formally opened Monday,
Dec. 15. A description of the structure, sent us by the bank,
says:
The limestone exterior of the building is typically modern in its freedom
from meaningless architectural ornament.
Simplicity of decoration and a friendly spaciousness characterize the
banking room, which is three stories high and is located at the second
floor level.
In contrast with the usual dark and formal metals used in banking rooms
the Union Industrial banking room achieves an effect of light and informality through the use of Nirosta metal, a form of stainless steel. The
counterscreen, containing 32 tellers' wickets, is made of this metal on a
base of walnut panelling in which the grain of the wood has been used to
form a modernistic design. An elaborate grille closing off the banking
room from the first floor corridor, light, fixtures, and cheek desks are also
made of Nirosta metal. Officers' space at each end of the banking room
is panelled in walnut. The ceiling, executed in hexagonal design, uses
color effectively but unobtrusively.
Two levels of semi-enclosed balconies are visible from the banking floor
and are partially closed off by walnut and glass panelling.
The first floor of the building is occupied by shops, and the elaborate
and massive safe deposit vaults of the bank are located in the first basement.
The bank also occupies the fifth floor, where the trust department and the
directors' room are located. All floors above the fifth will be leased for
office space.
C. S. Mott is President of the Union Industrial Trust &
Savings Bank, which has total resources of over $27,000,000,
and is a member of the Guardian Detroit Union Group,
Inc., while Herbert R. Wilkin is Executive Vice-President
and Cashier.
A small Michigan bank, the Commercial Bank & Trust
Co. of Aberdeen, failed to open for business on Dec. 17 and
later its affairs were turned over the the State State Banking
Department for liquidation, according to United Press advices from Aberdeen on the following day, which furthermore stated that the bank's statement on Oct. 1 1930 showed
deposits of $118,000.
Associated Press advices from Bridgman, Mich., on
Dec. 14 reported that the Bridgman State Bank of that
place, one of the largest rural banking institutions in Berrien
County, failed to open its doors on Dec. 13. The institution was capitalized at $20,000 and has deposits of
approximately $500,000. "Frozen assets" were given as the
cause of the bank's difficulties, the dispatch noted.
On Dec. 13 the Union Tru-st Co. of Baltimore, Md., one
of the largest banks in that city, with resources of more
than $77,000,000, took over the American Trust Co., of the
same city. The latter was organized in 1926 and had resources as of Jan. 1 last of $2,544,185. Baltimore advices
The proposed consolidation of two Kentucky banks—the
by the Associated Press, on Dec. 13, reporting the matter, Citizens' Bank & Trust Co. and the Central Set rings Bank—
furthermore said:
both of Newport, has been approved by the respective direcThe Union Trust will guarantee the deposits of the absorbed concern, it tors of the institutions, and the merger plan will be subwas announced by W. Graham Boyce, Vice-President of the Union Trust,
mitted to the stockholders at an early date, according to
and no restrictions will be placed on withdrawals or deposits.
DEC. 20 1930.]
FINANCIAL CHRONICLE
3997
Cincinnati advices, Dec. 11, to the "Wall Street Journal.
" Kingdom. The Earl of Mar and Kellie, K.T., is Governo
r,
The new organization will be one of the largest banks
in and Alexander Robb, General Manager.
Northern Kentucky, with combined capital and surplus
of
8400,000, and resources in 'excess of $2,500,000.
THE WEEK ON THE NEW YORK STOCK EXCHANGE.
Announcement was made on Dec. 15 by Oscar Wells,
The stock market had another setback during the early
Chairman of the Board of the First National Bank of
Bir- part of the week, as heavy selling forced prices downward all
mingham, Ala., of the merger of the Bank of Alabam
a of along the line. On Tuesday the break was particularly
Ensley, Ala., with the Ensley National Bank, making
com- severe and more than 300 active stocks dipped to new low
bined resources of more than $1,000,000, accordi
ng to an levels. But after a further sharp downward plunge WednesAssociated Press dispatch from Birmingham on
Dec. 15, day morning, the market in the afternoon completely reversed its course and made sensational and spectacular rewhich went on to say:
coveries. The feature of the trading has been the strength
"With the co-operation and support of the Birmingh
am Trust la Savings
Co. and the First National Bank of Birmingham,"
Mr. Wells's statement of local traction stocks which have advanced on reports of
said, "the assets will be taken over by the Ensley
National Bank and the progress in the plans for the amalgamation of
the different
latter assume the liabilities of the Bank of
Alabama!'
lines. United States Steel was off during the forepart of the
R. A. Terrell, for many years President of the
Bank of Alabama, died
yesterday (Dec. 14) of wounds which Coroner
J. D. Russum said were week, but regained all of its early losses. The weekly stateself-inflicted.
ment of the Federal Reserve Bank, made public after the
State Superintendent of Banks Dent F. Green said
that a recent report close of business on Thursday,
showed a further drop of
of the Bank of Alabama showed its affairs to be
in excellent shape.
$91,000,000 in brokers' loans in this district. Call money
A charter was issued on Dec. 8 for the First Nationa renewed at 23/2% on Monday, continued unchang
ed until
l
Bank of Frost, Tex., capitalized at $40,000. John
W. Mat- Wednesday afternoon when the rate dropped to 2%.
lock is President of the institution and J. C. Beck,
The stock market tumbled downward all along the line
Cashier.
in the brief session on Saturday, losses among the active
The Columbia Trust Co. of Salt Lake City,
Utah, was speculative issues ranging from 1 to 3 or more points.
placed in the hands of the State Banking
Department on Amusement shares and oil issues were under heavy pressure
Dec. 16, according to a dispatch by the Associat
ed Press and United States Steel broke through its previous low,
from Salt Lake on the above date, which,
continuing, said: closing at 1363' with a loss of over 2 points. The trading
Frank B. Cook, President of the institution
, said the directors requested at the half-day session closely approached 2,000,000 shares.
the closing "in order to protect all
depositors without preference."
The principal losses were American Can 4 points to 104,
"The bank is not insolvent, having
20% reserve at the close of business America Machine
n
& Foundry 3 points to 323, Worthington
Monday (Dec. 15), and it is the opinion
of the Board that every depositor
will be paid in full," Mr. Cook said.
"Total deposits are $718,544. Total Pump 7 points to 60, United Aircraft 53,4 points to 243,
assets are $1,175,590."
Peoples Gas 8 points to 200, Columbian Carbon, 53
% points
Application was received by the Comptroller of the Cur- to 733, Western Union Telegraph 4 points to 125 and
Texas & Pacific 4 points to 93. Anaconda was down about
rency on Dec. 11 to organize the First National
Bank of 50 points from its high for the year as it closed at
293/3.
Las Vegas, Nevada, with capital of $100,000.
Amer. Tel. & Tel. also slipped to a new low level for the
year as it broke to 1783.
The failure of a small Utah bank—the Dixie Stock
GrowHeavy selling characterized the trading on the New
ers' Bank of St. George, Utah, was reported in the
following York Stock Market
on Monday, and while some of the active
dispatch by the Associated Press from Salt Lake
City on speculative
favorites registered gains, most of the transDec. 11:
actions were at lower levels, railroad stocks, copper shares
Announcement that the Dixie Stock Growers' Bank
of St. George, Utah,
would not open its doors to-day was made here
by W. H. Hadlock, State and oil issues carrying the bulk of the recessions. Local
Bank Commissioner.
tractions, on the other hand, were unusually active. InterHe said the bank was one of the smallest in the State,
with approximately borough
$75,000 deposits, $25,000 capital, and $25,000 in
Rapid Transit forging ahead to 277
4, while Manbills payable. Frozen
loans were blamed for its condition.
hattan modified shares rose 7 points. Brooklyn Manhattan
Transit also surged forward 25
% points to 60%. NoteWill C. Wood, State Super- intendent of Banks
for Cali- worthy changes on the side of the decline were Worthington
fornia, has closed the Belvedere State Bank of
Belvedere Pump 6 points to 54, Standard Gas & Electrie 5 points to 35,
Gardens, in the suburbs of Los Angeles, at the
request of Central RR. of N. J. 53 points to 190, Del., Lack. &
directors of the bank, according to San Francisco
advices West. 63 points to 693/2, Cuban American Sugar pref. 4
on Dec. 18, printed in the New York "Evening Post" of
points to 28, and Pan American Petroleum B stock 4 points
same date. The bank had total resources of less the
than to 37. The Stock Market broke badly on Tuesday, heavy
$600,000.
selling in the oil, railroad, and copper stocks forcing United
States Steel and about 300 other stocks to.new low levels,
The annual statement of t-he Commercial Bank of
Scot- the
losses in the active list ranging from 1 to 7 or more points.
land, Ltd. (head office Edinburgh), for the fiscal
year The early trading
gave promise of a strong market, United
ended Oct. 31 1930, as presented to the shareholders at
their States Steel forging ahead
about 2 points to 1395', followed
annual general meeting on Dec. 18, has just been
received. by American Can, Westinghouse and
Auburn Auto, the
After providing for rebate of discount and interest
and for latter pushing to its highest
peak since last September,
all bad and doubtful debts, net profits for the 12
months with a gain of 5 points to 90. Before mid-sess
ion, however,
were £389,857, which, when added to £62,552, the
balance liquidation on a large scale appeared in the oil
stocks and
to credit of profit and loss brought forward from the
pre- this unsettled the rest of the market, dancelling practica
lly
ceding fiscal year, made the sum of £452,409 availabl
e for all of the early advances. As the selling gained
headway,
distribution. Out of this sum, the report shows, there
was new lows were recorded by such recognized market leaders
applied in July in payment of the semi-annual dividend
on as American Can, Westinghouse, General Electric., Amer.
the "A" and "B" shares at the rate of 16% and 10%
per Tel & Tel., Consolidated Gas and Du Pont. Railroad stocks
annum, respectively, 1127,875 (under deduction of
income were down all along the line and large losses were registered
tax £37,125), leaving a balance of 1324,534, which the
direc- by such issues as Worthington Pump, International Comtors recommended be appropriated as follows: £127,875
to bustion Engineering, Air Reduction, Peoples Gas dr Electric,
pay the second half-yearly dividend on the "A" and "B" New York Central, Missouri-Pacific
, Columbian Carbon,
shares at the rate of 16% and 10% per annum, respecti
vely Coca Cola, and Timken Roller Bearing. Standard Oil of
(under deduction of income tax £37,125) ; £50,000
to be New Jersey was offered in large blocks below 47, the lowest
added to reserve fund; £25,000 to be credited to
officers' price since 1928. Other stocks in the oil group establishing
retiring fund, and £50,000 to be applied in reduction
of the new lows, were Standard Oil of California, Phillips Petrocost of the bank's properties, leaving a balance of
£71,659 leum and Texas Corporation.
to be carried forward to next year's profit and
Following early selling, the market turned upward on
loss
count. Total resources of the bank on Oct. 31 1930 ac- Wednesday and sharp advances were recorded by many
were
£43,093,347, while total deposits were £33,182,352.
prominent stocks. United States Steel, for instance, led
The subupward spurt with a gain of 27
scribed capital of the institution is £7,500,000,
the
/
s points, followed by
of which
Worthington Pump with an advance of 8% points,
£2,250,000 is paid up, and its reserve fund is
£2,850,000.
People's Gas & Electric with a jump of 14 points, Air
Besides the head office in Edinburgh, the institut
ion has Reduction which improve
d 73 points. Allied Chemical
two London offices, 340 branches and sub-offices in
Scot- & Dye which gained 73
/
1 points, and American Can
land, and numerous correspondents elsewhere in the
United which closed with a gain of 5 points at 111.
The advance
For- 131.
FINANCIAL CHRONICLE
3998
recovered to 24 and closed to-day at
was the widest since Oct. 1, and the day's turnover aggre- A fell from 23 to 19%
transactions sold up to-day from
few
on
B
The
22%.
corn.
higher,
were
issues
d
Railroa
gated about 5,000,000 shares.
stocks almost without exception
Oil
rd
Standa
the
to
58
693..
of
some
and
and so were oil shares, utilities, motor stocks
Oil & Ref. broke from 653/i
Humble
un- registered new lows.
copper issues. The market moved around somewhat
63. Standard Oil (Indiana)
to
finally
ed
but
to
58%
recover
were,
ons
quotati
certainly on Thursday, though the closing
back to 334. Vacuum
sold
and
30
to
points
lost
four
upover
moved
on the whole, somewhat higher. Pivotal stocks
finally at 54. Gulf
sold
and
more Oil dropped from 61 to 453/i
ward from 1 to 3 or more points, while some of the
ends the week at
and
rallied
but
to
fell
from
Oil
to
5
583/i
from
643/i
d
volatile shares like Auburn Motors surged forwar
issues, Glen
aneous
miscell
and
ial
industr
Among
while 63%.
20 points. Trading was lighter than on Wednesday,and
Insull Utility Invest.
58.
to
50
from
up
t
sold
Coal
Alden
suppor
strong
was
t,
there
considerable realizing was apparen
nts com, weakened from 34 to 293.1 and closed to-day at 31.
for the leaders. The feature of the day was the moveme
as Deere & Co. lost over 10 points to 303', recovered to 373/i
of Auburn Motors which advanced more than 20 points
sharp
and finished to-day at 35.
made
stocks
it crossed 119. Numerous other pivotal
A complete record of Curb Exchange transactions will
141, while
across
got
which
Steel
States
United
notably
gains,
found on page 4035.
be
Radio
and
c,
Electri
l
Genera
Can,
Westinghouse, American
GE.
stocks
DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHAN
Corp. closed with substantial gains. Other active
es
advanc
Bonds (Par Value).
closing on the side of the advance with 2 to 3 point
Stocks
n Union
Foreign
(Number of
included Johns-Manville, Consolidated Gas, Wester
Week Ended
Total.
Domestic. Government.
Industrial
Rights.
Shares).
Dec. 19
Telegraph, Standard Gas & Electric, United States
7
to
up
0 8205,000 $2,970,000
ranging
$2,765,00
900
Gains
425.100
te.
c
Auto-Li
Saturday
Alcohol, and Electri
4,344,000
292,000
4,052,000
900
770,200
Kodak, Monday
4,537,000
348.000
4,189,000
6,400
1,030,500
points were registered by Air Reduction, Eastman
Tuesday
8,087,000
3,500,000
4,587,000
4,200
&
al
1,341.800
Chemic
Wednesday
Allied
Gas,
Union
yn
4,563,000
Brookl
595,000
s,
3,968,000
2,300
Corn Product
763,300
Thursday
3.657,000
241,000
3,416,000
3,100
520,100
Friday
Dye, and Columbian Carbon.
while the
17,800 522,977,000 $5,181.000 $28,158,000
4,851,000
Total
Stocks were generally higher on Friday and
most of the
volume of transactions was somewhat smaller,
Railprices.
higher
at
CURRENT NOTICES,
active shares were in good demand
RR.of N.J.
Central
h,
strengt
l
unusua
ed
develop
issued by the Los Angeles Chamber of Commerce
been
stocks
road
-A pamphlet has
& Maine, giving in some detail the preliminary figures of the 1930 census for the
forging ahead about 10 points, followed by Boston
about 6 points Los Angeles section, the State of California and its municipalities and also
and Union Pacific, which registered gains of
scored sub- for the 11 Far Western States.
each. Numerous other members of the group
manager of the Foreign Department, Foreman-State
and Texas -W.ofE.52Dunn,
as
n,
Wester
&
k
Wall St., is back at his desk after an extended absence
Corp.,
stantial advances, including Norfol
improved 4 general secretary of the Kemmerer Financial Commission to Colombia.
n
Atchiso
each.
points
5
about
with
Pacific
in the Union Trust
about 15
-Ernst & Company have opened a branch office
points and New York & Harlem jumped ahead
ent of Edward Schultz
Building, Cleveland, under the joint managem
Steel
1
States
United
.
points. Other noteworthy gains were
Schultz with Leo J. Schultz, assistant manager
& Dye 3M and S. M. Crane & Webb, members of New York Stock Exchange, 37
points, Vanadium Steel 3 points, Allied Chemical
-Greer,
Edison 23. Wall St., N. Y. City,announce the opening of an unlisted securities departpoints, Air Reduction 23 points, and Detroit
York.
ment, under the management of William A.
points. The final tone was good.
sponsors of 20th Century
-Roberts, Roach & Co., Inc., of N. Y. City,
entitled, "What Rich Men
Fixed Trust Shares, have issued a booklet
Know," explaining the structure of a fixed trust.
Co., Philadelphia, has boon ad-Alexander C. Yarnall of Yarnall &
e.
mitted as a member of the Now York Stock Exchang
EXCHANGE
TRANSACTIONS AT THE NEW YORK STOCK
DAILY. WEEKLY AND YEARLY.
Week Ended
Dec. 19 1930.
Stocks,
Number of
Shares.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
1,962,480
3,440,170
4,156,110
5,005,885
3,290,370
2,270,350
$4,788,000
7,831,000
7,983,300
8,747.000
8,170,000
8,377,000
$2,332,000
3,921,000
4,445,000
3,770,000
3,895,500
2,384,000
on lox one
eem Q,I1 qnn
eon TAT mnn
Week Ended Dec. 19.
Sales at
New York Stock
Exchange.
1930.
Stocks-No,of shares _
BondsGovernment bonds_ _
State & foreign bonds_
Railroad & misc. bonds
1929.
Total
Bond
Sales.
United
Stales
Bonds.
State,
Municipal &
Peen Bonds.
Railroad,
&c.,
Bonds.
$481,000
865,000
666,000
407,000
451,000
314.000
$7,581,000
12,617,000
13,094,300
12,924,000
12,516,500
11,075,000
52 1121 nnn too an, Olin
Jan. 1 to Dec. 19.
1929.
1930.
20,125,365
17,926,930
720,357,376
$3,184,000
20,747.500
45,876,300
$3,174,000
14.253,000
43,408,000
$110,465,400
696,908,900
1,864,443,200
1,103,367,180
$137,656,000
640,689,650
2,143,112,800
82,921.458,450
$69,807,800 $60,835,000 $2,671,817,500
PHILADELPHIA AND
.
BOSTON
THE
AT
CTIONS
DAILY TRANSA
BALTIMORE EXCHANGES.
COURSE OF BANK CLEARINGS.
as comBank clearings this week will again show a decrease
ed by us
pared with a year ago. Preliminary figures compil
of the
based upon telegraphic advices from the chief cities
ay (Saturday,
country indicate that for the week ended to-d
the United States
Dec. 20) bank exchanges for all the cities of
returns will fall
weekly
obtain
to
e
from which it is possibl
week last year.
10.0% below those for the corresponding
1,against $11,,351,71
$10,690
at
stands
total
Our preliminary
centre there
this
At
1929.
in
867,524,881 for the same week
7.2%. Our comof
Friday
ended
days
five
the
a
for
is loss
:
parative summary for the week follows
Total bonds
Philadelphia.
Week Ended
Dec. 19 1930.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
Baltimore.
Boston.
Shares. Bond Sales,
Shares. Bond Sales, Shares. Bond Sales.
88.000
3,354
$48,100
32,090
$9,000
27.650
46,000
6,540
45,100
13,000 a49,903
53,869
27.800
5.050
65.000
4,000 083,705
57,521
27,600
9,059
55,000
61,000 a85.439
73,186
23,700
3,899
131,300
37,000 a54,749
58,534
50,000
2,531
16,617
2,000
15,461
286,221
1126,000
322,503
$344,500
30,433
8183.100
3136.600
Prey, week revised 194,956 $116,500 202,014
400; Wednesday.
a In addition, sales of warrants were: Monday, 1,400; Tuesday,
500; Thursday, 100.
$272,300
35.783
THE CURB EXCHANGE.
of liquidation struck the Curb Exchange
wave
r
Anothe
utilities
this week forcing stocks to further low levels with the
market
and oil stocks the chief losers. On Wednesday the
trading
though
made
were
ies
tial
recover
substan
rallied and
450
dwindled and price changes were small. More than
securities sold to new low levels. Electric Bond & Share
moved up
corn. after selling off some three points to 37%
& Foreign
to 44, the close to-day being at 423/2. Amer.
d to 17
Power warrants declined from 163' to 113' recover
off from
and closed to-day at 163'. Amer. Gas & Elec. was at 823.
week
the
ends
and
to
ed
advanc
839'
743i,
83 to
Commonwealth Edison dropped from 2273/2 to 2173 with
seven points
sales to-day at 221. Northern States Power lost
51 to 45
from
down
sold
com.
Co.
Elec.
Tampa
to 123.
corn.
Power,
&
Light
and finished to-day at 493'I. United
Clearings-Returns by Telegraph.
Week Ended Dec. 20.
New York
Chicago
Philadelphia
Boston
Kansas City
St. Louts
San Francisco
Los Angeles
Pittsburgh
Detroit
Cleveland
Baltimore
New Orleans
Twelve cities, 5 days
Other cities, 5 days
Total all cities, 5 days
All cities, 1 day
...... .. . . .
1930.
1929.
Per
Cent.
$5,926,000,000 $6,382,000,000
539,329,045
410,781.245
600,000.000
405,000,000
401,000,000
379,000,000
125,585,986
100,373,510
129.300.000
111.000.000
181,977,000
165,043,000
Will no longer report clearings
157,816,185
182,437,231
170,646,285
144,534,170
132,516,281
119,492,073
90,207,124
79,761,567
56,099,107
47,186,760
-7.2
-23.9
-32.5
-5.5
-20.1
-14.2
-9.3
$8.070,609.556
838.016,870
$6,565,477,013
1,052,164,935
-5.8
-20.4
$8,908.626.426
1,781,725,286
89,617,641,948
2,249,882,933
-7.4
-20.8
eln Ann 251 711
Sll 807 A24 RAI
--Inn
+15.6
-25.3
-9.9
-11.6
-15.9
week covered by the
Complete and exact details for the
week. We cannot
next
of
'ssue
our
in
foregoing will appear
ends to-day
week
the
as
ch
furnish them to-day, inasmu
not be available
will
figures
ay
Saturd
the
and
(Saturday)
above the last day
until noon to-day. Accordingly, in the
of the week had to be in all cases estimated.
r, which we
In the elaborate detailed statement, howeve
complete
and
final
give
to
present further below we are able
13. For
Dec.
ended
week
-the
s
previou
week
results for the
te of
aggrega
the
28.4%,
of
e
that week there is a decreas
against
,
601,573
$8,842,
clearings for the whole country being
Outside of this
812,344,199,515 in the same week of 1929.
clearings at
bank
the
while
City there is a decrease of 27.5%,
the cities now
this centre record a loss of 28.8%. We group
which they are
according to the Federal Reserve Districts in
•
DEC. 20 1930.]
FINANCIAL CHRONICLE
located, and from this it appears that in the New York Reserve District, including this city, the totals show a shrinkage
of 28.6%, in the Boston Reserve District of 30.4% and in
the Philadelphia Reserve District of 39.7%. In the Cleveland Reserve District the totals are smaller by 9.4%, in
the Richmond Reserve District by 5.8% and in the Atlanta
Reserve District by 20.9%. The Chicago Reserve District
suffers a loss of 36.3%, the St. Louis Reserve District of
30.4% and the Minneapolis Reserve District of 22.2%. In
the Kansas City Reserve District the decrease is 18.6%, in
the Dallas Reserve District 34.4% and in the San Francisco
Reserve District 18.9%.
In the following we furnish a summary of Federal Reserve
districts:
SUMMARY OF BANK CLEARINGS.
Weak Ended Dec. 13.
1930.
1929.
Federal Reserve Diets.
$
1st Boston_ _ -12 cities
427.845,240
2nd New York_11 "
5,842,816,442
3rd Philaderia_10 "
425,142.411
4th Clevelead__ 8 "
378,833,405
5112 Richmond _ 6 "
175,484.239
6th Atlanta....13 "
141,336,206
7th Chicago ___20 "
652,175,995
8th St. Louis.... 8 "
153.594,256
9th Minneapolis 7 "
108,013,511
10th KansasCity 12 "
167,561,328
11th Dallas
5 "
55,743,208
12th San Fran...17 "
314,055,334
$
615.127,251
8,178,682,636
704,789,273
418,194,868
188,324,033
178,770,767
1,024,559,555
220,711,073
138.857,471
205,765,137
84,990,138
387,427,113
Inc.or
Dee.
1928.
1927.
$
$
%
-30.4
568.040,953
600.498,419
-28.6 9,997,601.489 7,484,132.672
-39.7
720,769,312
656,283,535
-9.4
463,454,999
451,998,895
-5.8
197,103.376
205,627.239
-20.9
215,506,750
218,697.907
-36.3 1,215,659,041 1,042,878,292
-30.4
256,793,152
255,057.479
-22.2
155,72/,450
140.577.278
-18.6
211.014,298
216,376,672
-34.4
90,2E2,968
89,548,524
-18.9
462.209.587
461.238.501
Total
129 cities 8,842,601.573 12,344,199,515 -28.4 14,553.663,373 11,812,918,413
Outside N.Y. City
3,145,676.373 4,339,452,534 -27.5 4,758,728,515 4,520,831,328
Canada
31 cities
336.168.846
443.285.459 -24.2
499.616.562
499,095.618
We now add our detailed statement, showing last week's
figures for each city separately, for the four years:
Week Ended December 14.
Clearings at
1930.
1929.
$
First Federal Reserve Dist net-Boston
Maine-Bangor__
1.043.475
659,730
Portland
3.467.918
4,070,775
Mass.-Boston_ _ 379,930,228 557.000.000
Fall River_
1.192.831
1,684,378
Lowell
657,807
1,919,288
New Bedford
1,034,000
1,223,909
Springfield.
4,495.752
4,785,541
Worcester
3.114444
3,919.404
Conn.-Hartford.
12.474,552
14.813.207
New Haven__ _
6,818.984
7,351,692
It.I.-Providence
12.928.500
17,296,300
N.58.-Manches't
694,149
903,027
Total(12 cities)
427,845,240
Inc. or
Dec.
+58.2
-14.8
-31.8
-29.2
-53.6
-15.5
-6.1
-20.5
-15.8
-7.3
-25.3
-23.1
1928.
631,628
4,019.381
502,000.000
1,766,662
1,640,400
1,450.231
6,161,426
4,520,328
18,028.787
9,157.564
17,788,500
876.046
1927.
775,662
3,945.270
536,000.000
2,738.975
1,552.988
1,404.030
5.882,208
4,265.355
17,331.222
8,579,067
16,997.700
1,025,944
615,127.251 -30.4
Second Feder al Reserve D strict-New
5.632.317
N. Y. -Albany_
6465,743
BInghamton
1,255.428
1,483313
41.785.707
Buffalo
53,074,208
Elmira
1.143.240
977.772
Jamestown__
1,024,562
1.326.632
5,696,925.2008,004.746.981
New York
10,089,196
Rochester
13,369.777
Syracuse
4,552.761
5,275,350
Conn.-Stamford
3,249,344
4.672.033
N. J.-Montclair
727.351
870.819
35,978,825
38.291,652
Newark
40,452,511
48,029,256
Northern N J..-
568,040,953 600,498,419
York
-14.2
7.153,041
6,176,248
-15.4
1,571.461
1,399,700
-21.3
64,439.496
56.950.965
-16.9
1,126,174
1,107,207
-22.8
1,596,469
1,578,684
-28.8 9.794,935.158 7.292,087.085
-24.5
17,353,957
14.649.792
-13.7
6,678,564
6,427.390
-30.5
4,235,683
3.638,254
-16.5
1.034,320
1,029,657
-6.0
39.199,884
36.868,815
-15.8
58,277,282
62,223,875
Total(12 cities) 5.842,816,442 8,178,682,836 -28.6 9.997,601.489 7,484,137,672
Third Federal Reserve Dist rIct-Philad elphia
Pa.-Altoona....
1,225,353
1,270,231 -3.5
1,576.212
Bethlehem....
3.731.173
5,610,309 -33.5
5,437,076
Chester
1.041,183
1,172,838 -11.2
1.475,213
Lancaster
1723.298
2.108.244 -18.3
2.066,543
Philadelphia... 401.000,000 673.000,000 -40.4 683,000,000
Reading
3491,824
5.046,144 -38.7
5,644,541
Scranton
4.765,535
5,237.637 -9.0
2,810,276
Wilkes-Barre
2.892,864
4.214.734 -31.4
4,771,505
York
2,181.181
2,138,091
+2.0
2,233,667
3.490.000
N.1.-Trenton..
4,991.245 -30.1
6.754,279
Total(10 cities)
425,142,411
1,673,088
4,622,135
1,499.950
2,130,414
621.000,000
4,810.357
6,556.360
4,642.408
2,290,786
7,058,037
704,789,273 -39.7
720,769,312
Fourth Feder al Reserve D (strict-Cie,eland
4,268,000
Ohio-Akron....
5,186,000 -17.7
3,720.205
Canton
4,989,074 -25.4
62,810.973
Cincinnati ...66,648356 -5.8
109.969,191 141,625486 -22.4
Cleveland
14.295.000
Columbus
18,086,800 -21.0
1315.228
1,625,345 -19.1
Mansfield
3.712,078
5,879,867 -36.9
Youngstown...
Pa.-Pittsburgh. 178,742,730 174,154,040 +2.6
7,684,000
5.498,908
81,107.724
152,074.643
19.859.000
1,943,646
6,736,193
188,550,885
7.204,000
4,494.342
83.812,849
143,722,808
20,867400
1,908,897
5,423,544
184,564,855
-9.4
463,454,999
451.998,895
Fifth Federal Reserve Dist act-Richm ond1131,894
1,196,705 -5.4
W.Va.-II unt'n.
5,548,249
Va.-Norfolk
5,917,958 -6.2
45,938.000
50.208,000 -8.5
Richmond _
2,011.012
2.103.803 -4.4
S.C.-Charleston
Md.-Baltimore _
94,205.459
98,756.856 -4.6
26,649,625
28,110,711 -5.5
D. 0.-Washlon
1,254,210
5,798.235
50,602,000
2,314.815
102,959,110
32,175,006
1.516.255
5441,832
54.413.000
2,000,000
112,357,791
29,798,361
-5.8
197,103,376
205,627,239
Sixth Federal Reserve Dist act-Atlant a.2,500.000
3,495,296 -28.5
Tenn.-Knoxville
17.537,047
Nashville
23,534.477 -25.5
38.635,798
50,019.792 -22.8
Georgia-Atlanta
1.778.678
2,444.972 -27.4
Augusta
1,212.437
1,759,751 -31.1
Macon
13,535.389
15,189,964 -10.9
Fla.-Jacks'nville
1826.000
3,037.000 -39.9
Miami
17,143,378
23,805,585 -27.4
Ala.-Birming'm.
1,846.072
2,250,583 -18.0
Mobile
2,143,000
2,083,000 +2.9
Miss.-Jackson_
207.780
284,240 -26.9
• V cksburg
42,970.627
141.-NewOrInns
51,066,107 -15.9
3,679.000
28.178,423
65,072.505
2.367.189
1,855,182
16.908,923
2,773.000
27,756,752
2,040,832
2.057,170
507.785
62.309,989
3,150,000
28,064,115
58,981,723
2.304.188
2,314,138
19,849,986
3,697,000
27,899,045
1769,458
2,320,000
416,823
67.931,431
Total 8(cities)_
Total(6 cities)_
Total(12 cities)
378,833,405
175384.239
141,336,206
418.194.868
186,324,033
178,770,767 -20.9
656,283,535
Week Ended December 13.
Clearings at1930.
.,„,...„
Dec.
'
1929.
$
$
Seventh Feder al Reserve D 'strict-Chi
lich.-Adrian _ ..
216,140
246,026
Ann Arbor-1,051,138
862,088
Detroit
136,656,932 181.945,779
Grand Rapids_
5,140,981
5,671,509
Lansing
2,803,804
3.220,460
nd.-Ft. Wayne
2,939,892
4,037,740
Indianapolis
19,297400
24.814.000
South Bend_ _ _
2,581,233
2,666,665
Terre Haute4.491,249
5,264,578
Vis.-Milwaukee
25.073,338
35,305,125
owa-Ced.Rap2,875,666
3,049,473
Des Moines...
7.624.032
10,660,773
Sioux City_ _
3,588,650
6,732,810
Waterloo
1,347,566
1,666,849
11.-Blooming'n
1,505.086
1.856478
Chicago
425,383,255 723,141,776
Decatur
1.094,193
1,277,195
Peoria
3,612,083
5,731,080
Rockford
2,617,667
3,503,733
Springfield
2,465,140
2.715,968
1928.
1927.
%
$
$
ago-12.1
263,925
295,007
-18.0
1,131,319
1177.033
-25.0 265,000,000 192,303,562
-9.4
9,345,596
8,320,304
-12.9
3.000,000
3,100,333
-27.2
4.353,399
3,497.239
-22.2
25,410,000
25.830.000
-3.2
3.051,300
4,524.100
-14.7
5,592,646
5483,498
-29.0
48,795,378
47,373,844
-5.7
3,197,563
2.678,155
-28.5
9,513.577
9,871.282
-46.7
7,196,341
6,125.329
-19.2
1,717,364
1,352,736
-18.9
1,199,611
2,103,083
-41.2 811,309,030 715.456,828
-14.3
1,908.339
1,435,498
-37.0
6,526,247
5,046.111
-25.3
3,901.876
3,884,995
-9.2
3,425,503
2,819,355
Total(20 cities) 652,175,995 1,024,559,555 -36.3 1,215.659,041 1
.042,878,292
Eighth Federa s Reserve Dis trict-St.Lo ulsnd.-Evansville
4,050,000
8,000,000 -49.4
40.-St. Louis_
99.700,000 131,900,000 -24.4
(5,.-Lotaiville._
23,738420
34,598,408 -31.4
__
443.636
733,683 -39.5
enn.-Memph
15,645.743
Owensboro_-is
26,934,291 -41.9
irk.-LittleRock
9,218,026
16,763,140 -45.0
179,012
11,-Jacksonville
365,380 -51.0
618,919
QuftieY
1,416371 -56.3
7,276,343
155,100,000
42,962,340
595.740
30.122,678
18,744,720
411,047
1,580,274
6,377.942
157,500,000
43.246.205
431,062
28,121,908
17,508,092
401,953
1,470,317
256,793,152
255,057.479
Ninth Federa Reserve Dim tact-Minn eapolls4,487.673
1Vlinn.-Duluth8,172,343 -45.1
9,567.370
73,277,233
Minneapolis
93,313,361 -21.5
98,300,221
22,915,672
St. Paul
29,308,329 -21.8
38,398,243
2,268,760
N. D.-Fargo_
2,321,461 -2.3
2,370.089
1,119,290
5.D.-Aberdeen
1,334,497 -16.1
1,721,816
739.103
Mont.-Billings.
800,075 -7.6
827.711
3,205.780
Helena
3.607,405 -11.1
4.044.000
8,432.663
87,257.057
36,970.843
2,089.387
1,486.893
744.435
3,596.000
Total(8 cities)_
Total(7cities)_
153,594,256
108.013,511
220,711,073 -30.4
138.857.471 -22.2
155,227,450
140,577,278
Tenth Federa Reserve DM tact-Kane as CMNeb.-I,remont_
314,439
364,914 -13.8
452,041
Hastings
657,372
533,039 -23.3
744.001
Lincoln
3.235,310
3,511,345 -7.9
4,163.168
39.177,214
Omaha
44,591,396 -12.1
42,437,707
3,249,354
Kan.-Topeka
3.594,557 -9.6
3431.494
Wichita
6,610.826
8,186,355 -19.2
10,064305
106,339,647 134.918,550 -21.2 139.548,906
580.-Kan. City
St. Joseph_ _ _ _
5,236.422
7,007,848 -25.3
7,190,309
Colo.-Col.Spgs
1,285,914
1,209,598 +6.3
1387,633
Denver
a
a
a
a
Pueblo
1,454,830
1,847.535 -21.3
1,494440
478.802
493,733
5,276,006
41,774.705
3.459.269
8,584,444
146.412,786
7,052.692
1,295,148
a
1.569,089
Total(10 cities)
167,561,328
205,785,137 -18.6
211,014.296
216,376,672
Eleventh Fede sal Reserve District-Da Rail-Texas-Austin___
1,603,896
1,981,976 -19.1
Dallas
38.324,484
56,393,200 -32.0
Fort W orth _
9.599,532
15,051,163 -36.2
Galveston
2,676,000
6,446.000 -58.5
La.-Shreveport_
3.539,294
6,117,799 -42.1
1,786,856
58,790,073
17.483,036
6,535,000
5,708,003
1,750,326
57,169.887
15,742,110
8.253.000
6,633,201
90,282,988
89,548.524
Total(5 cities).
55.743,206
84,990,138 -34.4
Twelfth Feder al Reserve D Istrict-San Francl scoWash.-Seattle_ _
35,149,635
44,130,427 -20.4
51,577,657
Spokane
10,859,000
12,764.000 -14.9
14,513.000
Yakima
1,259,154
1,813,136 -30.6
1,749,585
29.760,537
40,634,442 -26.8
Ore.-Portland41,630.808
Utah-S. L. City
16,641.415
22.947,410 -27.5
19,646,029
3,055.668
Cal.-Fresno _ ___
4,705,969 -35.1
4,003,372
7,823,167
Long Beach _ _
8,889409 -12.0
9,227.121
Los Angeles
No Longer W 111 Report Cle wings.
Oakland
15,446.558
20.668.224 -25.3
28.504.402
Pasadena
5,902,595
6,383.346 -7.5
7,821,965
Sacramento...
7,346,844
10.076,952 -27.1
10.878.244
5,672.786
San Diego._ _ _
7.563.677 -25.0
7.357.369
San Francisco_ 165.158459 195,385,011 -15.5 253,179,438
3,426,456
San Jose
3,851,733 -11.0
4,103,501
2,276,892
2,595,286 -12.3
Santa Barbara_
2,462.625
2,310,868
Santa Monica_
2,321,991 -0.5
2,499.371
Stockton
1,965,700
2,696,000 -27.1
3.055.100
50.846.759
12,447.000
1,681,078
40.685,851
21.615.319
5.021.526
8.361,984
23,207,333
8,052,927
8.557.377
6,155,165
253.944,000
3,353,437
1,961.770
2,191265
3353,700
Total(16 cities) 314,055,334 387,427,113 -18.9 462,209,587 4.51236,501
Grand total (126
8,842.601,573 12344199,515 -28.4 14553663,373 11812918.413
Cities)
Outside New York 3,145,676,372,4,339,452,534 -27.54.753.728.2154.520.831.328
Week Ended December 11.
Clearings at
1930.
215,506,750
3999
CanadaMontreal
Toronto
Winnipeg
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Fort William
New Westminster
Medicine Hat__ _
Peterborough
Sherbrooke
Kitchener
Windsor
Prince Albert
Moncton_
Kingston
Chatham
Sarnia
Total(31 cities)
$
112.940,975
101.425,294
39,684,634
16.581354
6,691,146
6,600.067
3.431,640
5,164.046
8,940,391
2,186.158
2,193.569
2,932.045
5,838,390
4,618,131
478,480
677,650
2,217,505
928,432
1,155.518
982.040
771,296
298,054
931,429
805.884
1,283.722
3,066,301
409,662
863,751
721,351
737,243
612,588
336,168,846
1929.
$
144,281,979
127467.648
68,959,715
21,463,247
9,067,283
7,069.145
3,515.754
7,572.122
13.045,275
2,386,209
2,796,172
3,371.733
3,974,127
5,985,892
595.126
841,187
2,867,220
1,276.188
1,622.128
915,744
803,771
464,328
873,351
1,030,547
1,447.700
5,473.040
521.135
1,273,782
867.309
910,772
847,832
inc. or
Dec.
1928.
1927.
ad
si
%
-21.7
-20.4
-42.5
-22.7
-26.2
-6.6
-2.4
-31.8
-31.5
-8.4
-21.6
-13.0
+46.9
-22.8
-19.6
-19.4
-16.9
-27.2
-28.8
+7.2
-4.0
-35.8
+6.6
-21.8
-11.3
--44.0
-21.4
-32.2
-16.8
-19.1
-27.7
$
162.389,495
149.819,787
71,816.237
23,763.663
8,586.438
6.945.659
4,291,509
6,370,598
16,644.693
3,372,581
2.733.720
3,784.092
5,185.638
6,807.600
772.007
797,859
2.854.453
1.674,926
1,441.227
1,483.501
878,185
630,803
1,025,491
924.586
1,375,620
8,051 229
482.116
1338,495
811,752
1,099,285
683.332
$
169.012.155
150,395,445
78,823.739
19,669,011
8,434.598
8.061497
3,358.022
6.286.657
11,924.437
3,062.399
2,365.143
3,101,104
5.598.455
7,562.758
693,315
750,811
2.696.292
1,542.071
1.361.070
1,048.369
755.502
629,858
1068,333
894,842
1,235.679
5,034.749
461.322
1082,802
773.063
8,065.523
805,597
443,285,459 -24.2
499.616.552
99.095,618
218,697,907
a No longer reports weekly clearings.
[VoL. 131.
FINANCIAL CHRONICLE
4000
PRICES ON PARIS BOURSE.
THE ENGLISH GOLD AND SILVER MARKETS.
of
Quotations of representative stocks on the Paris Bourse
We reprint the following from the weekly circular
been
as
received by cable each day of the past week have
of
date
Samuel Montagu & Co. of London, written under
as follows:
19
Dec. 13 Dec. 15 Dec. 16 Dec. 17 Dec. 18 Dee.
Dec. 3 1930:
1930. 1930. 1930.
GOLD.
amounted to £156.The Bank of England gold reserve against notes
with £157.913,216 on the previous
compared
(as
568,569 on the 26th ultimo
85 since Jan. 1 last.
Wednesday), and represents an increase of £10,608,4
arrived this week
The shipment of bar gold from South Africa which
been sold forward to
amounted to £1,037,000. but as this had mostly
and this was
Prance, only £15,000 remained to be dealt with yesterday price fixed.
The
taken for India and the Home and Continental trade.
es quotation recorded since the re85s. 2d. per fine ounce, was the highest
sUmption of the gold standard in April 1925.
is withdrawn
The French demand for gold continues and about £300,000
to Paris after refining.
from the Bank a England daily for despatch
show a net
week
the
Movements of gold at the Bank of England during
of which £600.000 was
efflux of £1,922,065. Receipts totalled £600.306.
withdrawals consisted of £400.000
in sovereigns from South Africa, and
taken for export, and
In sovereigns "set aside," E51,000 in sovereigns
for France.
was
which
of
bulk
the
gold,
bar
in
1
£2,071,37
imports and exports of gold
The following were the United Kingdom
mid-clay on the 1st inst.:
registered from mid-day on the 24th ultimo to
ExportsImportsE2,978.537
£20.000 Fr
Argentina
,
British West Africa44,301 Germany
59.100
Spain
712,217
Africa
British South
25.960
Austria
4,691
Other countries
22.430
Switzerland
13,648
Other countries
£3,169.663
£781.209
the month of October last
The Southern Rhodesian gold output for
ounces for September
amounted to 45,006 ounces, as compared with 46,151
1930 and 46,923 ounces for October 1929.
SILVER.
exchange, the silver market
Following a sharp decline in the Shanghai
9-16d.
under review, and from 16ultimo,
was decidedly weaker during the weekdelivery
quoted on the 27th
months'
two
for cash and 16 7-I6d. for
e derespectiv
the
for
yesterday
prices fell to 16 1-16d. and 16d. quoted
9 last.
quotations fixed since Aug.
liveries; the latter were the lowest
absence of
an
from
suffered
market
the
and
commitChina was a consistent seller
demand save to cover bearwas
more
adequate support, there being small
sold during the week, but
from
ments. America has both bought and level.
advices
steadier
With
to
inclined to give support at the low to-day.
slightly
reacting
prices
China there was less pressure to sellmonths. delivery.
two
for
16Hd.
16 3-16d. for cash and
narrowed
s
quotation
The difference between the cash and two months'
yesterday from %cl. to 1-16d.
and exports of silver
imports
Kingdom
United
the
were
The following
ultimo to mid-day on the 1st inst.:
registered from mid-day on the 24th
ExportsImports-_ ssomo
£60.404 British India
15,041
Mexico
countries
Other
70.800
British India
5.450
Australia
15.876
Canada
432
Other countries
£95,041
£152,962
INDIAN CURRENCY RETURNS.
Nov. 22. Nov.15. Nov. 7.
(In Lacs of Rupees)17032
17064
16484
Notes In circulation
12298
12272
12251
Silver coin and bullion in India
India
of
out
bullion
Silver coin and
3228
3228
3228
Gold coin and bullion in India
1296
Gold coin and bullion out of India
1342
867
nt)
210
Securities (Indian Governme nt)
222
138
Securities (British Governme
00
95,700.0
about
of
consisted
ultimo
29th
the
The stocks in Shanghai on dollars and 3,500 silver bars, as compared
00
ounces in sycee, 150,000,0
and 4,180
dollars
00
150.000,0
sycee,
in
ounces
with about 95,700,000
silver bars on the 22nd ultimo.
are appended:
Statistics for the month of November last
Bar Gold
-Bar Silver per Oz. Std.Per Oz. Fine.
2Mos,
Cash.
13id.
85s.
163(d.
16 1346d.
Highest price
858.
16 3-16d.
16 5-16d.
Lowest price
0.99d.
85s.
16.525d.
16.625d.
Average price
Quotations during the week:
85s. 1%cl.
167-16d.
169-16d.
Nov. 27
85s. 13k d.
165-16d.
16716d.
Nov. 28
85s. 1%cl.
16 3-16d.
5-I6d.
16
Nov. 29
85s. 1%d.
16)4d.
16% .
Dec. 1
85s. 2d.
16d.
16 1-161.
Dec. 2
85s. lga•
1654d.
3-16d.
16
Dec. 3
858. 1.54d.
16.198d.
16.302d.
Average
y for cash and two months' delivery are
The silver quotations to-da
ago.
a
fixed
week
those
respectively 5-16d. and Yid. below
PRICES ON BERLIN STOCK EXCHANGE.
on the Berlin
Closing quotations of representative stocks
of the past
day
each
cable
by
d
receive
as
ge
Exchan
Stock
week have been as follows:
Dec. Dec. Dec. Dec.
Dec. Dec.
13. 15.
98
121
110
146
108
108
225
55
98
72
169%
84
100
65
100
Aug. Deutsche Credit(Adca)(8)
Berlin HendeLs Got 02)
Commerz-und-PrIvat Bank (11)
Darnistadter U. Natlonalbank (12)
Deutsche Bank u. Disconto Geo.(10)
Dresdner Bank (10)
Reichsbank (12)
A igertneine Kunstzlide Unle (Aki)(18)
Able. Elektr. Gee.(A.E.G.)(9)
Deowbe To'- und Steiozeugwerke (11)
Ford Motor Co., Berlin (10)
Gelsenkirchen Bergwerk (8)
Gesfuerel (10)
Hamburg-American Lines (Hapag)(7)
Hamburg Electric Co.(10)
Auden Chendcal (5)
76
Baniener Bergbau (6)
100
Botelbetrleb (12)
128
(14)
Trust)
3.0. Farben Indus.(Dye
Kali Chernie (7)
75
Karstadt (12)
65
Mannesmann Tubes (7)
66
(8)
Lloyd
German
North
60
Phoenix Bergbau (654)
144
Poly phonwerke (20) (R.W.E.) (10)
130
Elektr.
Rheln-Westt.
78
Elachsenwerk Licht u. Kraft (7)4)
149
Siemens & Halske (14) n SpInnerel (5)
__
Stoehr & Co. Kammgar
ies
Leonhard Tlets (10)
(6) 61
Works)
Steel
(United
Vet. Stalhwerke
97
119
109
145
107
108
222
51
96
70
169%
83
98
64
98
73
100
126
114
73
83
65
58
142
128
78
147
M. 17. 18.
Per Cent of Par
98
97
97
120 120
121
110 110 110
146 146 146
108 108 108
109 1119 109
___
227 227
49
53
53
96
97
99
68
70
70
160)4 169% 157%
83
83
83
98
99
100
63
64
64
99 100 100
42
43
41
75
74
73
97
94
127 127 126
114 112 110
73
74
74
62
63
63
65
66
66
57
57
57
145 146 146
131 132 128
75
75
76
152 150 147
ioi
165
60
53
-_-_-_
58
ioi
53
19.
97
119
109
145
107
108
228
50
94
68
165
82
95
62
100
42
75
96
125
109
72
62
65
56
144
129
76
145
toi
58
1930.
Francs.
20,600
1,295
2,350
1,410
1 050
17,100
Cana! de Suez
2,280
Cie Distr. d'ElectrIcitie
2,750
Cie Generale d'Electricitle
568
Cle Ole Trans-Atiantlque
621
Otroen B
Comptotr Nationale d'Escompte 1,890
790
e
Ines
rier
Cou
co
tyr,
1,315
Credit Commerciale de France- 1,200
2,700
Credit Lyonnais
2,630
Eau: Lyonnais
963
Energie Electrique du Nord
Energle Electrique du Littoral_ 1,262
Ford of France
562
French Line
143
Gales Lafayette
728
Kuhlmann
1,260
L'Air Liquids
1,572
Lyon (P. L. M.)
2,230
Nord Ry
1.415
Orleans Ry
161
Paths Capital
2,230
Pechlney
87.10
Rentes 3%
135.20
Rentes 5% 1920
102.50
Rentee 4% 1917
101.10
Rentss 5% 1915
101.40
Rentes 8% 1920
3.060
Royal Dutch
3,975
Saint Cobln, C.& C
1,811
Schneider & Cie
2,200
Societe Lyonnais
1,038
Societe NIarselllabse
191
Tubize Artificial Silk, pret
1,100
Union d'Electricitle
355
Wagons-Lits
Bank of France
Banque Nationale de Credit
Banque de Paris et Pays Das
acnilfoien Parlsienne
qduradnepU
ana
jsa
C
1930.
Francs.
20,100
1,285
2,300
1,360
1.030
16,950
2.275
2,680
550
607
1,690
780
1,285
1 180
2,.650
2,580
950
1,260
211
550
144
710
1,220
1,580
2,210
1,400
139
2,150
86.70
135.10
102.60
101.10
101.40
3,030
3.920
1,742
2,150
1,030
182
1,070
351
1930.
Francs.
20,200
1,200
2,270
1,345
980
16,750
2.220
2,670
545
606
1,680
770
1,261
1,175
2,620
2,560
932
1,250
205
545
140
702
1,200
1,570
2,200
1.395
155
2,150
85.80
135.10
102.40
101.00
101.20
3,020
3,895
1,710
2.120
Francs.
20,200
1,240
2,300
1,350
1,010
16,825
2,270
2,700
545
611
1.680
780
1,260
1,175
2.630
2.550
915
1,205
209
541
140
685
1.210
1,570
2,180
1,390
160
2.160
86.00
135.00
102.40
101.00
101.10
3,010
3,830
1,710
2,150
990
172
-16
1.070 1,070
347
340
Francs.
20.100
1,230
2,250
1,332
995
16,650
2,200
2,680
548
606
1,670
770
1,260
1,175
2,600
2,530
910
1,200
201
542
142
688
1.180
1,579
2,200
1,390
155
2,140
85.70
134.80
102.30
101.10
101.00
2,930
3,856
1,706
2,100
-iii
1,060
338
Francs.
19,900
50
2:2.
1-,615
---1..-.:67.50:
2.
6
740
--)
2.;b9(
2,510
----Zia
533
130
888
1,180
2-,176
_ --2:100
85.50
134.70
102.20
101.00
100.90
2,990
-----------1-,likl
----
ENGLISH FINANCIAL MARKET-PER CABLE.
The daily closing quotations for securities, &c., at London,
as reported by cable, have been as follows the past week:
Sat.,
Dec. 13.
Silver, p. oz.d_ 13%
Gold, p. tine oz. 85.9.1Sid.
Consols,2%% _ 5734
British
British 4 34%.._ ___
French Rentes
(in Parls)_tr_ .......
French War L'n
(In Paris).tr. ___
4
Fri.,
Thurs.,
Wed.,
Tues.,
Mon.,
Dec. 15. Dec. 18. Dec. 17. Dec. 18. Dec. 19.
14%
14%
11-16
14
14%
13%
85s.1 Sid. 85s.1 Sid. 855.1 Sid. 858.1 Sid. 855.1%d.
%
67%
57 %
57>4
57>4
102%
102%
102%
10014
102%
101
100%
10134
100%
100%
85.50
86.00
85.70
85.80
86.85
101.15
101.00
101.10
101.00
101.00
The price of silver in New York on the same days as been:
Silver In N. Y., per on.(eta.):
30%
30%
Foreign
31%
31%
31%
31%
Tommycialand 701,iscella:monsDews
-All
Breadstuffs figures brought from page 4077. the statements below regarding the movement of grain
d by us
receipts, exports, visible supply, &a., are prepare
Exchange.
from figures collected by the New York Produce river
ports
First we give the receipts at Western lake and
for the week ending last Saturday and since Aug. 1 for
each of the last three years:
Oats. I Barley. I Rye
Corn.
'
Wheat.
,
32 lbs. 5558.48195. bush. Eelbs
bush.
lbs.
.1
lbs
58
bush.
bbls.1961bs bush,60
3.000
93.000
344.000
48,000 1.890.000
199,000
Chicago
310.000 516.000 241,000
1,335.000 1.202.000,
Minneapol19..
40.000
92.000
79,000
276.000
Duluth
28.000 170.000
423,000
14,000
Moiledo
T
12,000
lwaukee. __
2,000
40.000
24,000
238.000
12.000
18.000
7.000
15,0
Detroit
154.000
730.000;
13,000
Indianapolis.
26 000
333.000
568 000,
360,000
St. Louis_
128,000
70,000 159,000
80,000
357.000,
38,000
Peoria
67,000
26.000
1,003.000,
845.000
Kansas City
403,000 1.235.00V
Omaha
11
8.010
194
391.0001
62,000
St. Joseph
emoo
I
30.000'
316,000,
Wichita
7,000
30.000
132.000;
62,000,
Sioux City__
,
I 8,071.000 1.577.000 942.000 403.000
Total wk. '30 406.000 4.725,000,
2.384,000 943.000 891.000
Same wk. '29 424,000 7,010.000 9.149.000 3.549,000 1,779,000 464,000
SaineAwukg.. L28 528.000 8,916,000 13.625.000
1 ---I
1
Since
74,594.000 62,123,000 31.415,000 14.501.000
8,804,000 230,451.000 92.892.00
1930
14,652.600
45,626.000
77.021.000
0
9,012.000 236,909.000
0 74.772,000 67.027,000 18.522,000
10,037,000 312.890,000 107.748.00
11992289
Receipts al-
Flour.
the seaboard ports for
Total receipts of flour and grain at
ollows
1930,
13
Dec.
y,
Saturda
the week ending
Receipts at-
Flour.
Wheat.
Corn.
Oats.
I Barley. I
Rye.
56155. bush. 32155. bush.48115.'bush.56lbs.
bls.196ths. bush.80 lbs. bush.33,000
38.000
35.000
171,000
New York,. 300.000
47.000
380.0(10
8,00(111
Portland, Me.
22.000
14,000
8.000
34.000
48.000
Philadelphia__
8,000
18,000
33.000
15,000
Baltlinore__-_
1,000
Newport News
15,000
30,000
45.000
54,000
New Orleans•
14,000
Galveston....68.000
145,000
2,000.000
Montreal. _ 47.000
380.000
8.000
St. John, N.B
1,000
10.000
17.000
37.000
Boston
129.000
145,000
176,000
89.000
Total wk. '30 471,000 3.074,000
889,000
Since Jan.1'30 24,609.000 163.101.000 4.684.000 5.928,000 1,217.000
56.000
124.000
105.000
717.000
453,000
Week l929,,_
24.505.000 3.418.000
Since Jan.1'29 23.738.000150.161.000 17372.000 15.600,000
for foreign ports
Orleans
New
passing
through
grain
include
not
do
* Receipts
on through bills of lading.
1
4001
FINANCIAL CHRONICLE
DEC. 20 1930.]
The exports fr,ma tin several seaboard ports for the week Bank Notes-Changes in Totals of, and in Deposited
Bonds, &c.
ending Saturday, Dec. 13 1930, are shown in the annexed
statement:
We give below tables which show all the monthly changes
national bank notes and in bonds and legal tenders on
In
Rye.
Barley.
Oats.
Flour.
Wheat.
Corn.
Exports fromdeposit therefor:
New York
Boston
Philadelphia
Baltimore
Newport News
Mobile
New Orleans
Galveston
Montreal
St. John, N. B
Houston
Bushels. Bushels.
1,649,000
67.000
26.000
16,000
68.000
80.000
2,000.000
380,000
89,000
3,000
4,375,000
Ili Total week 1930
Same week 1929.... 1.612.000
3,000
10.000
Barrels. Bushels. Bushels. Bushels
25,600
218,196
1,000
1,000
1.000
22,000
29,000
8.000
10,000
47,000
290,196
146.760
47,000
49.000
68.000
145,000
93,600
145,000
The destination of these exports for the week and since
July 1 1930 is as below:
Corn.
Wheat.
Flour.
Exports for Week
Week
Since
and Since
Dec. 13 July 1
July 1 to1930.
1930.
Week
Dec. 13
1930.
Since
July 1
1930.
Since
July 1
1930.
Week
Dec. 31
1930.
Bushels. Bushels. Bushels.
Bushels.
Barrels. Barrels.
86.000
587,000 31,488,000
United Kingdom_ 15.990 2,271,646
Continent
80,806 2,754.303 3,710.000 78,228,000
So. dr Cent. Amer_ 100.800
686.440
7,000 1,360,000
32,000
West Indies
19,000
3,000
79.600
572,850
4,000
Brit. No. Am.Col
1,200
11.400
2,000
Other countries... 11.800
275.474
67,000 1,781,000
Total 1930
Total 1929
290.196 6,572.113 4,375.000 112.878,000
146.760 4.334.354 1.612.000 79.356.000
3,000
10.000
118,000
227.000
The visible supply of grain, comprising the stocks in
granary at principal points of accumulation at lake and
seaboard ports Saturday, Dec. 13, were as follows:
GRAIN STOCKS.
Wheat,
Corn,
Oats,
United States-bush,
bush.
bush.
32,000
New York
1,383,000
83,000
4,000
Boston
554.000
82,000
103.000
Philadelphia
28.000
41,000
Baltimore
7,527.000
377,000
Newport News
4,432,000
72,000
61,000
New Orleans
5,210.000
Galveston
6,368,000
231.000
361,000
Fort Worth
13,295,000 1,079,000 1,011,000
Buffalo
" afloat
12,717.000
1.206.000
4.393.000
10.000
Toledo
208.000
" afloat
1,023.000
1,693.000
Detroit
315,000
30,000
56.000
17,425.000 2.338.000 5,640.000
Chicago
2,006.000
" afloat
1.620.000
2,116,000
887,000 3,948.000
Milwaukee
22,199.000
339.000 2,598,000
Duluth
362,000
" afloat
960,000 5,273,000
31,764.000
Minneapolis
1.140,000
286.000
603,000
Sioux City
614,000
6,342.000
374.000
8t. Louis
322,000
157,000
21,886.000
Kansas City
6,000
1.870.000
Wichita
3,824,000
Hutchinson
369,000
7.010.000
290,000
St. Joseph, Mo
1,471,000
79.000
Peoria
866,000 1,181,000
964,000
Indianapolis
13,363,000 1.346,000
420,000
Omaha
Rye,
bush.
Barley,
bush.
37,000
5,000
7.000
6,000
16,000
90,000
129,000
5,000
742,000
224,000
499.000
1,334.000
2,000
5,000
22,000
45,000
3,220,000 1,477,000
2,419,000
792.000
236,000
675,000
4,174,000
589,000
4.755.000 4,961,000
24,000
20.000
97,000
124,000
461,000
18.000
12.000
23,000
19,000
139,000
Total Dec. 13 1930...189,944,000 9.863,000 28,436,000 15,811.000 11,592,000
Total Dec. 6 1930_191,242.000 6.975.000 29,158,000 15,940.000 12,331,000
Total Dec. 14 1929_181,977,000 5,060,000 28,015.000 11,220,000 9.596.000
Note.-Bonded grain not included above: Oats, New York, 3,000 bushels:
Duluth, 4,000; on Lakes, 248,000: total. 255.000 bushels, against 678.000 bushels
in 1929. Barley. New York, 9.000 bushels; Buffalo, 195,000; Buffalo afloat, 1,129.000; Duluth, 51.000; total, 1.384.000 bushels, against 3,413,000 bushels in
1929. Wheat, New York,1,867.000 bushels; Boston,619,000;Philadelphia, 198,000;
Baltimore, 524.000: Buffalo. 8,393,000; Buffalo afloat. 17,310.000; Duluth 78 000*
total, 26,989,000 bushels, against 36,923,000 bushels in 1929.
CanadianMontreal
4,634.000
1,070,000 1,406.000 1,941,000
Ft. William & Pt. Arthur_31.536.000
2,985,000 7.280.000 13,767,000
Canadian
23,248.000
2,750.000 1.496,000 6.557,000
Other
Total Dec. 13 1930-.59.418,000
6,805,000 10,434.000
Total Dec. 6 1930-55.717,000
6,582,000 10.446,000
Total Dec. 14 1929-74,158,000
9.978,000 5,897,000
Summary189,944,000 9,863,000 28,436,000 15,811,000
American
59,418,000
Canadian
6,805,000 10,434,000
22.907,000
22.886,000
16,282,000
11,592.000
22,907,000
Total Dec. 13 1930_249,362.000 9.863,000 35.241.000 26,245,000 34,499,000
Total Dec. 6 1930...246,508,000 6,975,000 34,515,000 26,386,000 35,217,000
Total Dec. 14 1929...256,135,000 5,060,000 37.993.000 17,117.000 25.878,000
The world's shipment of wheat and corn, as furnished by
Broomhall to the New York Produce Exchange, for the week
ending Friday, Dec. 12, and since July 1 1929 and 1928,
are shown in the following:
$
669,222,350
Nov. 30 1930
669,128.450
Oct. 31 1930
667,819,250
Sept.. 30 1930
667.320,9/0
Aug. 30 1930
666.406,250
July 31 1930
v666.824,750
June 30 1930
667,156,250
May 31 1930
667,650.750
April 30 1930
667,251,240
Mar. 31 1930
667,108,740
Feb. 28 1930
667.464.790
Jan. 81 1930
687.774.650
Dec. 31 1929
667,635,650
Nov. 30 1929
666.736.100
Oct. 31 1929
667,093,770
Sept. 30 1929
' 666,864.280
Aug. 31 1929
666.407,040
July 31 1929
666,199.140
June 30 1929
666.233.140
May 31 1929
666,221,390
Apr. 30 1929
Mar. 31 1929.....66.6,630,890
666,432,090
Feb. 28 1929
667,013,340
Dec. 31 1928
Nev. 30 1928...._ 667,506,440
667.168.440
Oct. 311028
667,318.040
Sept.29 1928
666,732.700
Aug. 31 1928
666.641,200
July 31 1928
665,658.650
June 30 1928
667.491,900
May 811928
666,196,480
Apr. 30 1928
868.866,710
Mar. 31 1928
667,011,210
Feb. 29 i 28
666,230.710
Jan. 31 1028
667,127,710
Dee. 31 1927
666.830.210
Nem 50 1927
Exports-
Week
Dec. 12
1930.
I
Since
July 1
1929.
I
Week
Dec. 12
1930.
Since
July 1
1929.
I
Bushels.
Bushels.
Bushels.
Bushels. I Bushels.
Bushels.
North Amer_ 5,281.000198,272,000158,320,000
25,0011
904,000 2,018,000
Black Sea- 2,984.000 74.934,000 14,299,000 510,000 20,948.000 8,155,000
531,000 20,834,000 94,497,000 4,960.000112.147,000101,945,000
Argentina...
Australia ___ 1,848,000 30.634,000 21,525.000
40.000 8,912,000,
320,000
India
720,000 24,720,000, 19.492.000
153,000i 32,641,000 20,522,000
0th. countr's
!
11.404,000358,296.000 308,453,0
Total
5,648.000'166.640.000 130,640,000
$
668.033.075
668,017,935
665,853.557
664.838.133
663,528.038
665,607,070
665,719.485
665.974,780
665,107.343
664,928,197
664,468.092
663,823,167
664.115.977
661,822.047
652.823,980
649,297.990
657,764,443
662.773,570
663.328,203
663.364.517
661.924.472
659,651,580
662.904.627
663,931.957
662.705.675
660,463.912
660.518.182
658.463,423
658.732.988
661.522.450
661.127,600
662.412,992
661.481.322
659,332.017
662.380,082
663.340.675
$
31,911,805
32.137,965
33.414,773
32.984,335
33,025,390
32,710,398
31,933,193
31.225,248
31.066.745
31,669.548
32.115.298
34,118.073
37.465.128
38.506,768
38.564,685
38,652.573
39.707.550
41.520.872
39,651,731
36,720.772
38.750.627
35.231.759
35.877.502
36,248,802
37,446.779
37,688.747
38,299.802
38,926.224
40.887.664
39,757.992
38.814,509
36.802.227
38.250,372
38,407.517
38,623.507
39.060.424
Total.
$
669,944,880
700.155.900
699,268,330
697,123.168
696,553,428
698,317,488
697.652.678
697.200,028
696,174.088
696,597,745
696.583,390
697.941.240
701,581.105
700.328.815
691,388.665
687.950,563
697.471.993
704,294,442
702.979.934
702,085.289
698.675.099
694,883.339
698.782,1211
700.180,759
700,152,459
698.152.659
698.817.984
697.389.647
699.620.652
701.280,442
699,942.1617
899,215.219
699,731.691
697.739.534
701,003,589
702.401.099
U. S. Bonds Held Nov. 30 1930 to SecureOn Deposit to On Deposit to
Secure
Secure Federal
Reserve Bank National Bank
Notes.
Nola.
Bonds on Deposit
Dec. 1 1930.
2s, U. S. Consols of 1930
28. U. S. Panama of 1936
28. U. S. Panama 01 1938
Totals
Total
Held.
594.882.250
48.545.360
25,794,740
594,882.250
48,545.360
25.794.740
669,222.350
669,222,350
The following shows the amount of National bank notes
afloat and the amount of legal tender deposits Nov. 1 1930
and Dec. 1 1930 and their increase or decrease during the
month of November:
National Bank Notes-Total AfloatAmount afloat Nov. 1 1930
Net decrease during November
S700,155.900
211,020
S699.944,880
Amount of bank notes afloat Dec. 1
Legal Tender NotesAmount on deposit to redeem National bank notes Nov. 1
Net amount of bank notes redeemed in November
32,137,965
226,160
Amount on deposit to redeem National bank notes Dec. 1 1930-- $31,911.805
Foreign Trade of New York-Monthly Statement.
Merchandise Movement at New York.
Month.
Imports.
1930.
1
1929.
Exports.
1930.
1929.
Customs Receipts
as
New York.
1930.
1929.
January__ 152,812,381171,501,300 158,679.252 176,480.924 24.678,913 27.286.733
136,999.034 188,138.049 143,659,298 187.045.251 20,705,240 28.274,931
60 209.690,365 23,765,513 29,352,388
139,891,390 187,708.168 143.299.6
March
148,366,031 200,158,425132,003,459159.917,637 23.010.593 27.528.213
April
o
135.023,042
135,023,042 188,510.687 130.626,818 132.845,534 26,659,611 28,727.341
Stay
119,554,902,167.839,901 105.065,146 151.986.551 34.933,670 28.755,719
June
99.900.2341166.191.360 98.069,398 168.829.725 15.617,549 29,410,142
July
August_ _ _ 99.085,287 168.711,634 97.722.024 143.450.080 18.700.854 30.684.237
92,325,970 149.465.106 20,672,440 31,741,943
100.496.855176.246,040
September
October__ 124,376,643208,743,389 95,822.991155.150,632 22.811,155 35,436,544
,1
Total.-- 1256595 800 182374893311972739621634861785229.555,538297,207,191
Movement of gold and silver for the ten months:
Siker-New York.
Gold Movement at New York.
Imports.
1930.
Since
July 1
1930.
Legal
Tenders.
The following shows the amount of each class of United
States bonds and certificates on deposit to secure Federal
Reserve bank notes and National bank notes Nov.30 1930:
Corn.
Since
July 1
1930.
Bonds.
63,184,042 Federal Reserve bank notes outstand ng Dec. 1 1930. secured by
lawful money, against $3,502,881 on Dec. 2 1929.
*The total bonds reported held for circulation by the U. S. Treasury were
$605,000 less, due to not having received this amount until July 1, 1930.
Month.
Wheat.
National Bank Circulation.
Afloat on-
Amount Bonds
on Deposit to
Secure Circuta
lion for National
Bank Notes.
January
February.
March__
April
May
June
July
August- - September
October....
7.201,382
14,593,919
7,108,051
40.686,115
2.943,605
1.584,804
13.106.577
4,592.811
5,284,013
17,825,288
1929.
Exports.
1930:
8.772,302 8.874.560
158.467
22,368,701
265.000
21,610.369
90,500
21,458,367
50.000
20,268,841
24.377.699
30.949 776 30.001.077
14,178.797 35.314.272
14,920.507 8,974.842
10,613,977
30,000
Total...114,956,565 189,519,096 78,759,618
1929.
721,008
1.038.867
1.001.252
250.000
305.708
268,347
773.9.69
706.269
780.940
3,730,667
Imports.
1930.
1,530,94
1,213,537
1,515.527
1,180.561
1.373,64
739,82
1.60.07
1,203.35
907.631
1,247,269
B'spolo.
1930.
3.537,178
2,789,904
2.896.063
1.881,919
3,042,587
2,173,834
2.882,830
2.885.153
2,303,494
2,635,268
9,577,015 12.517,363. 27,004.228
4002
FINANCIAL CHRONICLE
FoL. 131.
$ per share.
$ per share. Shares. Stocks.
Shares. Stocks.
1
50 Seneca Plan Corp. corn., no par.$1 lot 300 Mission 011 Co.. Par $1
1,000 Kolo Products Co.,Inc.,com3,625 Allerton Corp. prof.; B 3,316
corn., no par: 1.658 corn., B no
mon, no par
58 lot
13 Tory Hill Sand Sc Gravel Co.8%
Par: 250 Allerton Co. of Chicago,
APPLICATION TO ORGANIZE RECEIVED WITH TITLE
pref.: 125 Allerton Co.of Chicago
preferred
$1101
REQUESTED.
3200 lot
13 Tory Hill Sand Sc Gravel Co.
common, no par
Capital.
common, no par
51 lot 4,090 Bayou Teche 011 Corp., no
Dec. 11-The First National Bank of Las Vegas, Nev
.$100.000 101.875 Federal Telep. Mfg. Corp.
$5 lot
par
Correspondent: Harry E. Miller. Box 702, Las Vegas. Nev.
pref
$10 lot 4,500 Bayou Teche 011 Corp. war35101
273.025 Federal Telep. Mfg. Corp.
rants, no par
CHARTER ISSUED.
1
Dec. 8-The Frost National Bank of Frost, Tex
$40.000
common, no par
52 lot 15 Colombian Petroleum Co
20 Amer. Woman's Realty Corp.,
1,150 Gardner Petroleum Co. stock
President: Job. W. Matlock. Cashier: J. C. Beck.
250.
preferred
$110 lot
trust ctfs
80 Magazine Repeating Razor Co.,
25,000 Scratch Gravel Gold mining
Auction Sales.-Among other securities, the following, class
$6101
B, no par
1
Co., par $1
1,000 C. Kenyon,Inc., pref
$150 lot 48.000 Clark's Fork Gold Mining
not actually dealt in at the Stock Exchange, were sold at auction 85
$6101
Amazon Co., Inc., no par
Co., par $1
55101
in New York, Boston, Philadelphia and Buffalo, on Wednes- $3,400
note of Robert Krug dated
1,000 Butte & Orogrande Mining
$1 let
Mar. 15 1928, roast due, without
Co., Ltd., par $5
day of this week:
recourse
$1 lot 20,000 Blake Horse Mining Co.,
By Adrian H. Muller & Son, New York:
213 Greendale Products Co., comLtd., par S1
$3 lot
mon.par 35
$13101 10,000 Kootenay Belle Mining Co.,
per • Shares. Sfoc s.
200 Woodyard'
Publications, pref _45 lot 2,000 White Caps Extension Mines
$2101
276 Greendale Products Co., pref..
Par 31
200 Woodyard Publications, compar $10
Co.. par 10c.; 1,000 Alabama
$31 lot 3,500 East Caledonia Mines CO..
mon, no par
par 280
$3 lot
360 Allerton Corp. 7% cum. pref.,
Petroleum Co.,Par 51; 1.000 Kay
$5 lot
100 Bonwit Teller & Co. (N. Y.).
$1_311
lot
par
Cooper Co.,ctf. of dep.,
class B
$10 lot 32,000 Lucky Jim Zinc Mines Co.,
$3.25 cony. pref., no par
Ltd., par $1
$6101
36 Pouch Terminal, Inc., 8% cum
934 2,500 Tobey Polish Co., corn.,
750 Belding Hall Elec. Co., eons$5 lot
$120 lot 1,100 Lural-Color Products Corp.,
prof., class B
Par $5
mon, no par
$16 lot
common, no par
$4 lot 100 Allerton Corp., 7% cum. pref„
300 Vulcanite Portland Cement Co
300 Cornstalk Products Co., Inc.,
$80101
$4425 lot 1,500 Chewelah Copper Ring Minclass B;447% cum. pref
common, no par
DO par
ing Co., par $1
82101
25e. 20 Metropolitan Realty,Inc., pref.,
1,600 Dahlberg Corp. of Amer.,
1,000 United Grape Products, Inc..
1,200 Residuum Reclamation Corp.
par $50; 10 common, no par -320 lot
common, no par; 525 corn.
V. I. c., no par
$21 lot
common, no par
50c. 40 Commonwealth Bond Corp. 7%
temp. ctfs,, no par; 100 Pref./
100 Safe-Guard Check Writer
$40 lot
$500 lot 3.000 Bell Mining Co., par 25c---32 lot
no par
pref.; 40 common, no par
Corp., no par
500 Clipper Mining Co., par $1---$1 lot
50 Sally Baker Candy Shone, Inc..
250. 60 Murray Hill Allied Corp., no
500 Yarg Producing dr Refg. Corp..
$15101
Undivided 20% interest in the Oil
par
cony. pref., DOT $50; 25 common,
common, par Si
Placer Mining Claims
$5 lot
$7 lot
no par
$25 lot 10 Twilight Pictures Corp., 7%
22 Kanawha Jr Hock. Coal & Coke
$5101 35 Tidewater Rolling Mills. Inc..
12,640 Bruton, Ltd., Private Co.
pref.; 38 common, no par
Co., common
(Canadian corn.) 0% non-cum.
Prof.; 3734 common, no par----320 lot
5e. $1.50 New Eng. Spring Mfg.Co.lst
6 Kanawha & Hock. Coal & Coke
preference
$50 lot
100 Salvarex Co., Inc., pref., par
mtge. 15-yr.s1.6s; 15 New Eng.
$10 lot 28,180 Bracton, Ltd., Private Co.
$20; 125 common, no Par
Co.. Pre
Spring Mfg. Co., corn., no par;
$1.30
200 Clarence Saunders stores,
(Can.corp.), common,no par_.$50 lot
$5,000 N. J. Lime Products Corp.
30 New Eng. Spring Mfg. Co..
1,100 Burns Bros.(N.J.) A, no par 27
cony. 15-yr. s. f. deb. 7e, April
Pref. A, with warr., par $50--$100 lot
Pref.; 300 Oxford Flour Mills.
75 Nat, Wat. Wks., pref. B,no par 6
200 Burns Bros.(N.J.( B, no par-. 334
1930 & subs, coups. attached;
Ltd., par $10: 16 Fred'k South75 Nat. Wat. Wks„ corn. A,no par 214
9,625 Belmont Copper Mining Co..
$6,000 Three R Mines, Inc. 6%
ack dc Alwyn Ball, Jr..Inc., com$40101
400 Holly Sugar Corp.. common,
par $1
promissory note, dated July 1
mon. no par; 15 Fred'k Southack
no par
100 Safeway Stores warrants
$2 lot
1929, due July 1 1932; $2,500
& Alwyn Ball, Jr., Inc., pref.:
$400 lot
500 N. J. Worsted Co., corn., no
50 Five Points Land Co., Detroit,
Three R. Mines, Inc., 7% 1-yr.
50 Hickory Hills Syndicate;
par; 100 F. M.Lupton Publisher.
Mich
5810$
notes, due Jan. 1 1931; $2,500
2 Davaneck Holding Corp., Cl. A,
Inc., class A, no par
50 112 East 83rd St. Realty Co..
Three R. Mines, Inc., 6% de$35101
no par;20 H.M.Bradford & Co..
10 Carpo Cover Co.,Inc
Inc., pref
mand note. dated April 25 1930 35001ot
$20 lot
$21o$
Ltd.: $10,000 note of Fred'k
2,535 Cornstalk Products Co.. Inc..
50 112 East 83rd St. Realty Co..
$50.000 2d mtge. on prem. 1473South:sok & Alwyn Ball, Jr.,Inc..
Inc., common, no par
$10101
1475 Montgomery Ave., Bronx,
common, no par
dated June 23 1926; $500 note of
$25 lot
30 Greendale Products Co.. com50 Park East Operating Corp.,
N. Y.; this mtge. Is subject to a
Alpha Tau Alpha, dated July 24
common, no par
$10104
$500101
mon, par $5
$200101
1st mtge.of 5210,000
1925
$5 lot
60 Greendale Products, 6% pref.,
10-24 East 22nd Street Corp."___850 lot 20,582 Cornstalk Products Co.Com100 Butte Copper Exploration Co.,
$10 lot
mon
2,500 Seminole Corp., no par- --$25 lot
Par $10
$15 lot
Par $5; 500 Greene-Gold-Silver
$125101 50 Consolidated Mtge. Corp. Com175 La France Republic Corp..
2,200 N.Y.Home Foundation Corp.
Co.. Par $10
$50 lot
Class A common,no par
common
$11 lot
mon, no par
$25 lot 500 East Coast Mtge. Corp.. com$25 lot
9 8-15 The Old Witch Co., Inc.,
mon, no par; 500 East Coast
50 Federal Alloy Steel Corp
1.000 Direct Control Light Corp.
no par
(N.Y.), no par
355 lot
$2 lot
Mtge. Corp., pref., par $10;
Per Cent.
500 Union Cigar Co.,par 310
Bonds25 Wm. R. Compton Co. com20 River Dennis Sand dr Clay
$30101
2,500 Conlagas Mines, Ltd., common B
535 lot $2,000 St.Lawrence Pulp Sc Lumber
Co., Ltd., pref.; 75 River Dennis
mon, par $5
200 Central Teresa Sugar CO.(Md.)
Sand & Clay Co., Ltd.. corn.. no
Corp. tat M. serial s. f. es, ctf.
$1,000 lot
1,000 Internat. Burners Corp., pfd_ 1
$50 lot
of dep. Feb. 1924 Sc subs. °OUP.
Par; 25 H. M. Bradford & Co..
8% Pref., par $10
100 Bergner & Engle Brewing Co..
Ltd.; 10 White Point Beach Co.,
$45101
attached
5 Tyson Co. (N. Y.) 8% pref.;
pref.; 100 common
Ltd.,com.,no par;25 White Point
5 common, no par
$10 lot $400,000 Buffalo Sc Erie Ry. 1st M.
$10 lot
100 Simms Magneto Co., pref.,
Beach Co., Ltd., pref.;714 Whisk
100 Latherizer Corp. corn., no par;
30-yr.s.f. 63's, July1 1954, ctfs.
temporary certificate
100 pref., par $10
Co. of N. Y., Inc., no par; 150
$5 lot
Of dep. Issued by Chat. Phenix
$4 lot
95 The Recreator Corp.. comRhode Island Scale & Service
$750101
100 Brazilian Babassu Corp., prof.;
Nat. Bank Sc Trust Co
mon;190 preferred
$1 lot
Corp.. par $20; sundry notes ag300 common v,t. c., no par__ -$12 lot 42,500 Buffalo Sc Erie Ry. 1st M.
10 Tidewater Rolling Mills, Inc.,
$10,167.90.
gregating approx.
500 Garrison Fire Detecting lye,30-yr. 634s. July 1928 Sc subs.
Pref.;5common
dated from June 3 1921 to Mar.20
$15 lot
$55 lot
tem. Inc., common,no par
coup. attached
$50 lot
10 Venice Water Power Jr Ice Co..
$400 lot 210 Cornstalk Products Co., Inc.,
1930
350,000 Haines City. Fla.,534a,due
pref.; 5 common
$1 101 520 Butterworth-Judson Corp..
3531
common, no par
serially, 1940 to 1945
$3 lot
68 Willys-Overland, Ltd.,onlinary$40 lot
corn., no par;600 Hale & Kilburn
600 Chestnut & Smith Corp.(Del.)
150,000 Miami, Fla., municipal im500 Amer. Cirrus Engines, Inc.,
7034
Corp., pref., par $20: 1.300 Hale
provement 58, 1954
common, no par
$275 lot
class A,500 class B
& Kilburn Corp., COM. Par $13
3.000 Humboldt Mining Co., par
340 lot
550,000 Sarasota County,Fla., high5034
94 117-1000 Okeechobee,Inc.(Del.)
$3101
150 Nat. Gas Register Pump Co.,
way 65. due 1956
$1
no par
10 Enfisco Oil Corp., pref
pref., par $25:716 Nat.Gas Regis$1 lot 125,000 Bradenton, Fla., Inapt. 65,
$5 lot
5034
550 Florida Peninsular Co., com1935 and 1936
100 Enfisco 011 Corp. common,
ter Pump Co.. corn. v. t. c., no
mon, no par
no par
par;400 Nat. Gas Register Pump
$1 lot 115,000 Hudson Towers, N. Y., 25
$5 lot
550 Florida Peninsular Co., pref__320 lot
47 Leeds Devel. Corp., pref
M.7s, June 26 1935. Dec. 1929
Co., cl. B, pref. rights; 10,000
$5 lot
1,000 Lindsay Distilleries, Ltd.
Sc subs. coup. attached: $10,000
70 Slate Veneer Co., pref.;70 cons_ _$6 lot
Volcano Mines Co., par 51; 100
Leverich Towers (Brookhold
(Canada),common,no par_ _ _ _3110 lot
1,050 Fajardo Sugar Co. of Porto
Brock RR. Co.; 750 Iroquois
Const. Co., Inc.) 2d M.is. Aug.
315 Western Mines Consol., Inc.
Rico
36
Coal Co.; 2,600 Saguenay Pulp
2 1931. trustee ctfs. Feb. 1929
(Nev.), par $1
Sc Power Co., corn., par $5_-$100 lot 2,167 Fajardo Sugar Co. of Porto
$1 lot
&subs,coup.attached;200 Amer.
400 Wrought Iron Co. of Amer.
Rico
36
Note of Charles A. Beach for $500.
Bond Sc Mtge. Co.7% cum. pref.
66
(Pa.), common, no par
95 Manhattan Co par $20
dated Phlla , Aug. 13 1921, due
$55 lot
160 Elide° Oil Corp.(Del.), v.1.0.,
Mcctf.
of dep., no par; 1 etf, of dep.
$20
87
W.
Y.,
par
T.
Nat.
City
of
N.
85
Bank
Nov. 13 1921; note of
DO par
for bonds sold by Am. Bond Sc
1,000 Crown Lock Co.(Del.) el. B,
Mullen for $150, dated Dec. 10
$10101
$25 lot
Mtge. Co. In the aggregate prin,
no par
Indebtedness of Hansen Sc Co.,Inc.,
1912, payable 58 days after date;
5100 lot
and H. F. Hansell Jr., on acel
amt. of 35,000-Alden Park
1,300 Leach Corp. V. t. c
note of John Chester Ball for $200,
Manor 634% 1st M. 6'4s. due
$100101
stated in the amt. of 341,091.87,
1,500 Leach Corp. v. L. c
dated Nov. 11 1912, payable on
Feb.25 1936;Feb.25 1930 Sc subs.
int. thereon from Mar. 1 1929,
875101
750 Leach Corp. v t 0
demand, with int.; note of Lucy
coup. attached
$2,100 lot
with vot, tr, ctfs. for 1,000 8118.
30 Lalance & Groslean Mfg. Co.,
Swallow for $300, dated Oct. 3
li55 lot $500 Passaic Collegiate School 2d
cora, stock of Wilbur-Suchard
Prof.: 30 common
1929; pay, on dem., int. 6%. on
M. 30-yr. inc. 4s. Jan. 1 1954,
50 Atlas Advertising Agency. Inc.,
Chocolate Co., Inc.(no par), and
which the sum of $175 has been
no COUP
pref.; 25 common
$25101
$UM kit
$7 lot
$55,000 par val. of 6% bonds due
Paid
1938 of Amer. Associated Invest$2,000 Greendale Products Co. 6s,
$50,000 Allerton Co. of Chicago,
345 South Hudson Holding Co..
$20101
ors held as collateral security for
due 1957, fully registered
$825 lot
5-year 2d mtge. 5-yr. 6%
Inc
bearer note, dated Sept. 8 1928,
$17,500 Seattle Sc Rainier Vail. Ry.
the Payment of such indebtedness
100 The Mirror, pref.. temp. ett_3225 lot
mtge.
58,
July
1
1934.
with
10
subs.
Int.
coup.
atand to be delivered with the asCo.
gen.
Corp.,
Refg.
165 North Amer. Oil &
Jan. 1928 Sc subs. cold). sttached; $20,000 Allerton Co. of
signment of such indebtedness_3110 lot
par 35: 10 Lakeside Chem. Co.;
$200 lot
5,000 Colombian Oil Concessions,
Chicago, Ill., 2d mtge. 5-Yr. 6%
tached
100 Bauer Taxicab Mfg. Co., no
Inc.(Del.), temp. ctfs., no par__E6 lot
bearer notes, dated Sept. 8 1928,
$7,500 Seattle Sc Rainier Val. Ry.
par; 25 Hazelett Stor. Batt. Co.,
55 Wm. R. Compton Co. corn. B
each with 10 subs. int. coupons
Co. Inc. mtge. 18-yr. 6s, July 1
no par;40 R.H.C.Holding Corp.
$55 lot
75 Original common
attached thereto;$90,000 The Al1934; no coup. attached
2nd, par 310;40 R.H.C.Holding
$105 lot
50 Cady Lumber Corp.. cum.cony.
$20101
$22,018.56 Coney Island Hotel
lerton-Cleveland Co. 2d mtge.
Corp., corn,, no par
5-yr.6% bearer notes dated Nov.
Corp.3d mtge.trust class 13-330 lot
7% Pref.;50 common,no par _$20 lot 50 Blind Brook Realty Co.. Ina-s6
All right, title and interest of the
lot
1 1929, each with 10 subs. int.
$5,000 etf, of indebtedness of 112
corn., Dar $5;50 pref
executor, If any,in and to 10 ails.
coupi, attached thereto
East 83rd St. Realty Co., Inc--335 lot
$300 lot
400 Blind Brook Realty Co., Inc..
of the capital stock of the Union
$8101 275 The Allerton Corp.pref.031,334
$25.000 Union Traction Co.of Kancorn., par 55:100 prof
Trust Co.of Cleveland
common, B no par:2,66834 comsas tat mtge. 58. Jan. 1 1937, ctf.
$900101 250 Deepwater Coal & Iron Corp.
$100 lot
200 Matteo Realty Corp., no par_.$3 lot
mon, no par
of den
$100 lot
(Del.), pref.;500 corn., no par--$25 lot
30 Bowman-Blitmore Hotels Corp.,
54101
2,250 Cosden Oil Co., pref
common, no par
$10101 20,000 Forty-Nine Min. Co., Ltd.,
By
Boston:
Wise,
&
Arnold,
Hobbs
25 Bowman-Blltraore Hotels Corp„
$30101
Par Si
S per share.
Shares. Stocks.
1st pref
$ per share. Shares. Stocks.
$235101 240 U. S. Bond & Mtge. Corp..
50 ex-div
65 Western Mass. Cos
95
$40101 1Fed. Nat,Bank
CU. for 10 abs. Bowman-Biltmore
no par
50 Fed. Nat. Bk.,(tr. Ms)part 820 95
200 Magazine Repeating Razor
Hotels Corp
$1 lot 45 N.J.-U.S.Bond as Mtge.Corp.,
1
B
20 Ritz Carlton Hotel Co.of Montclass
22
Co..
Merrimack Mfg,Co.,corn
38
7% cum. pref.;90 corn„ no par_ $45 lot
real, Ltd
55 Boston Mfg. Co., 634% pref
33 lot 25 Anaconda Copper MM. Co.,
$10 lot 251 36-42 Buckeye Lt. & Pow. Co.
25
3 Cleve. Disc't Co., corn., no par-31 lot
par $50
7 Amer.Linen Co
1
corn. V. t. c., no par; 251 36-42
6 Lancaster Mills, prof
100 Flexograph Co.,Inc., pref_ _350 lot
53 120 South. Surety Co., par $2.50.... 3
corn, V. t. e., no par; 205 30-42
185
1,134 Montizona Copper Co., com4 U.S. Envelope Co., corn
1
3200 lot 45 Weetamoe Mills
common v.t. c., no par
mon, no par
$05 lot 290 Lone Star Gas, $16.88 paid, no
12 Associated Textile Co
50 Shell Union Oil Corp., corn.,
35
6%
50 Duval Texas Sulphur Co., comno par
35
$13.68 5 Associated Textile Co
par
mon, no par
6 Fitchburg Duck Mills, corn
200 Mo.State Life Ins. Co., Par$10 1434
201
$110101 300 Magazine Repeating Razor,
500 Vacuum Seal Co., Inc., com5 Associated Textile Cos
25 United Corp. of Del., cons
1434
35
class A, no par
$3
mon, no par
5 Associated Textile Cos
19 Rome Br. Sc Cop. Co., corn.
35
$100 lot 487 8-10 Magazine Repeating Razor
316 Brookside Investment Corp.
$4 lot
75 U. S. Worsted Corp., corn., _310 lot
(stamped)
clam B, no par
It
(Conn.),common
25 Associated Textile Cos
$1001ot 300 Biscayne Securities Corp.,coin_ $5
3634
%
1 Suburban Elec. Sea, lot pref.; 23
1,530 Manganese Holding Corp.
1000 Fiat Co.,stk. purch. warrs_ _ _
5 44-100 Woodmere Realty Corp.
52
2d pref
(Del.). no par
$180101
corn., no par; 100 Datura Holding
$96 lot 10 Amer. Mfg. Co., pref
44 Springfield Ry.Co., pref
50 Com'wealth Bond Corp.(Del.),
Co. corn.; 132 Westwood Devel.
7214 200 Shawmut Bk. Inv. Tr., par $50 7
6
2 Northern RR.of New Hamplhire_110
Common, no par
510 lot
20 Y-D Serv. Garage, Inc., pref
Co., corn.; 714 Reversion Realty
434
45 Century Shs, Tr, Panic, Shs--. 33
50 Com'wealth Bond Corp., pref_ _328 lot
20 New Engl. Industries, com
Co.corn., no par; 11 Florida Guar40
1,200 Eighth & Ninth Aves. Ry.
515 lot 8000 Fort Hope Mining Co.,par $1.84 lot 24 Guam'Sc Knight Co.. pref
anty Corp.,common
1000 U.S.Elec. Light & Pow.Shs.,
Co.. no par
5300 lot 50 Seneca Plan Corp. 734% cum•
60 Old Colony Tr. Assoc_ _30-30% ex-d1v.
series B
88 Federal Sugar Refg. Co.,eom_ _835 lot
$15 lot
634 2534 Dow Steam Valve Sales Corp_ 1
pref
80 Moxie Co. of Amer., class A__$50 lot 100 U-Can Safety Hair Cutter
200 U. & S. Mining & Devel. Co.,
100 Atlantic Funding Corp. 8%
$10101
Corp., Par $10
540 lot 100 Moxie Co.of Amer. CIA.corn_ 370 lot
preferred
cum. pref., par $20
$50 lot
2500 New Engl, Maritime Co_ _.$25 lot 20 Farms Co., class A common__ 10
20 Fred'k Southack Sc Alwyn Ball,
160 Atlantic Funding Corp. corn..
150 Old Colony Trust Assoc...31 ex-div.
Jr., Inc., pref.;20 cora., no par- _31 lot
10
$12 lot 20 Parker Young Co„7% pref
no par
National Banks.-The following information regarding
National banks is from the office of the Comptroller of the
Currency, Treasury Department:
DEC. 20 1930.]
Shares. Stocks.
$ per Sh.
25 Am. Bureau of Internat. Requirements, Inc., pfd.; 1 Amer.
Clydesdale Assn.; 25 Boston
Dwelling House Co.; 200 BostonLos Angeles Oil Co., pfd.. par Si;
800 Boston-Lot Angeles Oil Co..
Corn., par 51; 5 Can. No. Quebec
By. Co., corn.; 4 Ire Pavilion,
Inc., corn.; 10 Ice Pavilion, Inc.,
pref.; 75 Livermore, Rojas &
Co.. Inc., corn.; 50 Livermore,
Rojas & Co., Inc., pref.; 1178
Cost!Ila Trust fifth lien ctfs. of
beneficial int.; $5,167.70 Cost!ila
Trust third lien ctfs. of beneficial
interest
$60 lot
4 Com'wealth Fin. Corp., pref.; 1
common
$1 lot
500 Island Inv. Co., 8% pfd.; 800
common as bonus
11i on pf.
30 Schwarz, Ruggles. Inc., pref.;
100 Servel, Inc.. corn. v. t. c..$25 lot
350 Util. Mfg.& Sales Corp.. cam.,
Par $10; 225 pref., par $10
$8 lot
FINANCIAL CHRONICLE
Shares. Stocks.
$ Per Sh.
100 Winchester Repg. Arms Co. of
Del., 7% pfd.; 100 cl. A, pref_.$6 lot
29 Wayne Coal Co., par $5; 4 New
Engl, South. Mills, 7% cum.
pfd.; 25W. M. Lowney Co.--_ _56 lot
50 Consol. Chain Stores Corp., pf.;
125 common
$15 lot
Bonds.Per Cent.
$25,000 East. Mass. St. By., 414s,
Jan. 1948
203.4 & int.
510,000 Fort Lauderdale 6s, Jan.
1946
10 flat
$4,000 Westchester Service Corp.,
6s, April 1948
50 & int.
$5,000 Waterloo, Cedar Falls & No.
Ry., 55, Jan. 1940 (certificates
of deposit
1034 flat
$1,000 Parker Young Co. 634s.
Feb. 1944
40 & int.
$10,000 Hardy Coal Co. deb. 7s.
Sept. 1936 (carrying 50 shares
Hardy Coal Co.. corn, as bonus)$16 lot
$10,000 Dallas Joint Stk. Ld. Bk.,
5s, Oct. 1963
65 & Int.
By R. L. Day & Co., Boston:
Shares. Stocks.
per 573. Shares. Stocks.
Per Sh.
20 Nat. Shawmut Bank. Par $25-- 583.4 523 Schletter & Zander, common_ 520.
25 5-20 Federal Nat. Bank. par $20 95
500 Consol. Chain Stores Corp..
25 Atl, Nat. Bank, par $25_773.4 ex-div.
common
$15 lot
25 U. S. Trust Co.. par 525
80
30 Lancaster Mills, pref; 5500 ctf.
5 Central Trust Co., Cambridge,
of int. New England Invest. &
Par $10
58
Security Co., pref., shareholder
20 Associated Textile Cos
35-36
protective agreement; 40 New
207 Sharp Mfg. Co., common _25c. lot
England Southern Corp.. Prior
2 Nashua Mfg. Co.,common
1014
pref.; 35 New England Southern
15 Brown Durrell Co.. common .53 lot
Corp., common; 100 Eastern Air
1,165 1-3 Brown Durell Co., com
200.
Union, Inc., corn
$155 lot
310 Cordavllie Woolen Co.. 2nd pf_55 lot 110 Wiggin Terminals, Inc., pref- 851
.
60 Hill Manufacturing Co
9
50 Boston Woven Hose & Rubber
50 Newmarket Mfg. Co
15
Co.. common
so
100 Connecticut Mills, corn. A.
50 Great North. Paper Co., par 525 35
par $10
$2 lot 20 Saco Lowell Shops, 2nd pref.-- 7
70 Berkshire Fine Spinning Asso44 Sonora Products Corp., corn.;
ciates. pref
25
50 Boston Sr Montana Devel.
198 Berkshire Fine Spinning Asso$1 lot
Co., Par $5
ciates, common
4
100 New England Southern Corp.,
50 Boston Elevated St. By. Co., pf.. 85
common
$3lot
400 Boston Elevated St. By. Co.,
175 Boston Whippet Knight Corp.,
common
ss
common
$3 lot
10 East Middlesex St. By. Co.__ 70
1,025 Nacozari Consol, Copper Co..
12 Eastern Michigan Rya., corn.
par $5; 1,831 Bald Butte Mining
vet. tr. ctfs.; $1,600 Eastern
& Milling Co.. par 51
$6 lot
Michigan Rys. adj. 65. July 1958
1,000 Doughty Tire Co., Par $10450 lot
coupon Oct. 1929 and sub. on;
25 Western Mass. Cos
5014 ex-div.
$50 Eastern Michigan Rys. ad).
2,800 Munro Stores, Inc., pref.,
6s scrip.
$200 lot
par $10; 1,350 common
$6 lot
5 Blue Diamond Materials Co., pf_85 lot 116 Laconia Car Co., common
$2 lot
25 Star Tire Sales, Inc.;60 Glendale
85 United Securities Trust Assoc
2234
Laundry System, Inc., pref.,
400 Winchester Repeating Arms,
par $50
50c. lot
preferred A
$50 lot
5 Old South Building Associates,
50 Sun Maid Raisin Co.. pref.-.47 lot
$15 paid in liquidation
50
200 Winchester Repeating Arms,
5 Blue Diamond Materials Co., pf45 lot
preferred A
$25 lot
25 Page & Shaw, Inc., pref
20c. 400 Flintkote Co., common A
10
50 United Elastic Corp
20 ex-d iv. 200 Union Solvents Corp., corn.;
.50 Farms Co., common class A___ 10
200 Union Solvents Corp., Prof.;
221 New England Southern Corp.,
50 Exchange Securities Corp_ 4150 lot
corn.; 25 prior preferred
$5 lot 800 Union Copper Land & Mining
224 West Va. Coal & Coke Co.,
Co., par $25
$30 lot
common
$40 lot 150 units Central By. Sig. Co., Inc. 20
100 Lake Ontario Brewing Co..
130 Western Mass. Cos
5034 ex-div.
Ltd., common
$10 lot 10 units First Peoples Trust
20
4 Saco Lowell Shops, common__ 234
100 Alfred Vetter Sons, Inc., 2nd
BondsPer Cent.
preferred
$25 lot $10,000 Puntenney Line Co., 7s
50 Detachable Bit Corp
serial bonds, coup. May 1927 and
3
25 New England Southern Mills,
sub. on
$1 lot
Prior Prof.; $1,750 New England
$5,000 Alaska Gold Mines 6s,
Southern Mills 5s, Dec. 1933_551 lot
Dec. 1926
5155
lot
200 Latherizer, pref., par $10; 200
$10,000 Seaboard All Florida By.,
common
$1 lot
1st 6s, Aug. 1935, series A
9 flat
10 Noyes Lumber Co., corn.; 10
$2,000 Punta Alegre Sugar Co.,
Noyes Lumber Co., prof
7s, July 1937 Chase National
$5 lot
25 Boston Wharf Co
Bank certificates of deposit...9 flat
95
50 Copley Square Trust, common.- 28
Mortgage bond and first mtge. on
40 Nat. Service Cos., pref
163 Oxford St., Brooklyn, N. Y.,
3434
40 Quincy Market Cold Storage Sr
for $5,000 dated Sept. 28 1916
Warehouse Co., pref
given by George Bancroft to
5734
10 Noyes Lumber Co., corn.; 10
James R.Be Voe with assignment
preferred
by James R. De Voe dated April
$5 lot
2,365 Incorporated Invest. Equities 7
10 1924 of $3,845. Face value
200 Consol. Chain Stereo] Corp.,
with interest due from Sept. 28
634 preferred
$30 lot
1923 at 5%
$10 lot
By Barnes & Lofland, Philadelphia:
Shares. Stocks.
per Sh.
75 National Bank of Olney
1234
50 Phila. Nat'l Bank, par $20
100
150 Union Bank & Trust Co
$50 lot
50 Union Bank & Trust Co
$16 lot
409 Bank of Phila. & Trust Co.,
par $10
134
1 Olney Bank Sr Trust Co., par $50_166
148 Commercial Nat'l Bank & Trust
par $10
20
10 Tradesmen's Nat'l Bank & Trust
290
Co
57
10 Bankers Trust Co., par 350- 10 Bankers Trust Co., par $50- - 58
25 Franklin Trust Co.. Par $10__. 42
50 Continental-Equitable Title &
26
Trust Co., par $5
48
15 Broad St. Trust Co., par $50
25 Guarantee Trust Co., Atlantic
City, N. J
30034
20 M. H. 13resette X-Ray Co.. no
$5 lot
par
20 Rockhill Coal & Iron Co., pref_42 lot
20 Rockhill Coal & Iron Co., pref_31 lot
50 The Land Co.of Fla., no par --$20 lot
20 Panhandle Producing Sr Refining
Co., 8% cum. cony, sink, fund,
$150 lot
preferred
10 Florida Portland Cement Co.,
$100 lot
pref.; 5 common
20 Eastern Mass. Pass. By., ad).
stock
$15 lot
51 Public Utilities Cons. Corp_ _ 4100 lot
25 110115 Royce of Amer.,6% pref _1180 lot
331 D111 dr Collins Co., corn
10 Bateman Brothers, len., pref.;
$1 lot
36 4-5 class B, common
Shares. Stocks.
$ per Sh.
160 Grubnau Chem. Co.. pref--US lot
65 Kellwall Co., corn
$25 lot
100 Alfred Zabel Full-Fashioned
Silk Hosiery Co., Inc., pref.... 2
213 Red Rock Oil Co., common,
par 510
330 lot
59 Valvoline Oil Co., corn
85
5() Plaza Trust Co
4
10 Keystone Tel. Co. of N. J., 6%
pref
$25
tot
Bonds
Per Cent.
$17,000 Boxy Theatre Bldg.(Ridge
Ave.& Levering St., Roxborough,
Pa.), 1st mtge. 531s, class B,due
Nov. 15 1932
$9,000 lot
$5,000 School Dist. of Phila. 5%
loan of June 25 1920. Feb. 1 '31-.100
$5.000 Lower Broadway Properties,
Inc.. 1st mtge. sink. fund 68,
March 1 1946
95
$5.000 N. Y. Central RR. equip.
trust 7s, Aprll 15 1931
1003.4
$1,000 Northern States Power Corp.
1st lien dr gen. mtgs. 6s,series A.
Nov. 1 1948
$3,000 Alaska Anthracite RR. Co.1033.4
lot mtge.20-year 6s, Jan. 1'
41_5151ot
55,000 Illinois Coal Corp. 1st natge.
7s. ter. A, 1943, ctfs, of dep...-54 lot
$25,000 The Shoreland 1st mtge.
6345, 1935, ctfs, of der.
2
$15,000 Bldg. Materials Corp., deb.
8s, Nov. 1 1939 (May 1925, and
subseq. coup. attached
$2 lot
$2,000 Canadian Rail & Harbor
Term. 7s, 1945
5
By A. J. Wright & Co., Buffalo:
Shares. Stocks.
$ Per Sh.
6,000 Kay Copper Corp.. Par $1-51 lot
100 Universal Gypsum Co.. trustee
$1101
certificate, no par
100 Croft & Allen Corp. of Del.,
$1 lot
no par
2,025 Ore Chimney Mining CO..
Ltd.. par 40e., with shareholders'
reimbursement certif. for $50-41 lot
Shares. Stocks.
$ Per Sh•
4,500 Peer Oil Corp., temp. corn.
certificates, no par
$2 lot
25 American Rayon Products Corp.,
flops?
$2.25 lot
100 Metropolitan Chain Stores,
Inc., 7% cum. cony. pref
$25 lot
10 Niagara Falls Hotel corp., pref43 lot
5 Niagara Falls Hotel Corp., no par..$1 lot
Shares. Stocks.
$ Per share.
SON.Y.United Hotels, Inc., pref-$6 lot
20 N.Y. United Hotels, Inc.. corn.,
no par
$• lot
10 Prince Edward Hotel Co. of
Windsor, Ltd., pref., with deb.
or scrip div. ctfs. for 5455
$1 lot
5 Prince Edward Hotel Co. of
Windsor, Ltd.. no per
$1 lot
85 United Hotels Co.of Amer., pf_515 lot
ST United Hotels Co. of Amer.,
no par
$3 lot
10 Chippewa Credit Corp
$5 lot
30 American Dekart Co.. Inc..
class B, no par
$2 lot
4003
Shares. Stocks.
$ per share.
2,000 Parmac Porcupine Mines,
Ltd., par $1
52.25101
10 F. W. Freeborn Eng. Corp
$1 lot
25 Tens Foods, Inc., pref
$1.75 lot
35 Teco Foods, Inc., corn., no par_ 100
150 Curtice Bros., pref
7
Bonds.
Per Cent.
$500 Terminal dr Transportation
Corp. of America, 10-year cony.
deb. 7s. May 1 1927, ctf of dep-$2 lot
$2.000 St. Lawrence Pulp & Lumber
Corp., 1st M. serial s. f. 68 with
Feb. 1 1924 and tubs, coups.
attached, elf. of deposit
$1.50 lot
DIVIDENDS.
Dividends are grouped in two separate tables. In the
first we bring together all the dividends announced the
current week. Then we follow with a second table, in
which we show the dividends previously announced, but
which have not yet been paid.
The dividends announced this week are:
Name of Company.
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
Railroads (Steam).
Jan. 1 *Holders of rec. Dec. 15
Akron Canton & Youngstown (guar.)... *4
Jan. 1 Holders of rec. Dec. 200
3
Allegheny dr Western
Dec. 31 *Holders of rec. Dec. 19
*4
Atlanta & West Point
*$1.68 Jan. 2 *Holders of rec. Dec. 26
Avon Genesco dr Mt. Morris
1% Mar. 2 Holders of rec. Jan. 17a
Baltimore & Ohio, common (guar.)
1
Mar. 2 Holders of rec. Jan. 174
Preferred (guar.)
Jan. 10 "Holders of rec. Dec. 31
Carolina Clinchfield dr Ohio,corn.(qu.)_ "1
"51.20 Jan. 2 *Holders of rec. Dec. 20
Cayuga dr Susquehanna
Jan. 1 *Holders of rec. Dec. 3
*3
Central Argentine By..6% pref
.2 Jan. 15 'Holders of rec. Dec. 31
Central of N.J.(extra)
2% Feb. 2 Holders of rec. Dec. 29a
Great Northern, preferred
1% Jan. 5 Holders of rec. Dec. 24a
Joliet & Chicago
1% Feb. 2 Holders of rec. Dec. 31
Kansas City Southern By.,corn.(qu.)
Jan. 15 Holders of rec. Dee. 31
1
Preferred (guar.)
*334 Feb. 10 *Holders of rec. Jan. 15
Louisville dr Nashville
'9334c Jan. 2'Holders of rec. Dec. 16
Nashville & Decatur
"2% Jan. 1 *Holders of rec. Dec. 15
New London Northern(guar.)
•1
Jan. 1 'Holders of rec. Dec. 15
Extra
Jan. 15 *Holders of rec. Dec. 31
*52
Northern Central
Jan. 1 *Holders of rec. Dec. 9
Norwich & Worcester. Prof. (guar.).- *2
'234 Dec. 31 *Holders of rec. Dec. 10
Providence & Worcester (guar)
Feb. 12 'Holders of rec. Jan. 15
"$1
Reading Co., corn. (guar.)
*500. Jan. 1 *Holders of rec. Dec. 24
Sussex
*3% Jan. I 'Holders of rec. De0. 15
Ware River
Public Utilities.
American Nat. Gas, 2nd pref.(guar.)._ 17344 Jan. 1 Holders of rec. Dec. 22
Arizona Power.7% pref.(guar.)
'134 Jan. 2'Holders of rec. Dec. 24
Jan. 2 *Holders of rec. Deo. 24
*2
8% preferred (guar.)
$1.50 Jan. 1 "Holders of rec. Dec. 21
Battle Creek Gas. pref. (guar.)
*40c. Jan. 15 *Holders of rec. Dec. 31
Bridgeport Hydraulic(guar.)
Brooklyn Borough Gas, corn.(guar.).- •$1.50 Jan. 10 *Holders of rec. Dec. 31
.75c. Jan. 2'Holders of rec. Dec. 15
Participating pref. (guar.)
Jan. 15 Holders of rec. Dec. 31
Bklyn.-Manhattan Tran., corn.(quar.)_ 51
Bklyn. Sr Queens Transit, pref.(guar.).- $1.25 Jan. 2 Holders of rec. Dec. 26
Calif:Oregon Power Co..7% Pi. MIL).- 134 Jan. 15 Holders of rec. Dec. 31
134 Jan. 15 Holders of rec. Dec. 31
6% preferred (Qua?.)
Jan. 1 Holders of rec. Dec. 8
Capital Traction,"Wash., D.C.(guar.). 1
Jan. 15 *Holders of rec. Dec. 31
Central Sr S. W. Utll., corn.(in stock)._ •16
*$1.50 De.c 31 *Holders of rec. Dec. 15
Cent. Vermont Pub.Serv.,corn.(qu.)
*75C. Jan. 1 *Holders of rec. Dec. 24
Cincinnati Street By. (guar.)
•400. Jan. 1 *Holders of rec. Dee. 20
Cleveland Elec.Ill., corn (guar.)
Preferred (guar.)
*134 Mar. 1 'Holders of rec. Feb. 15
Columbus Del.Sr Marlon Elec. pfd.(qu.) "51.75 Jan. 1 'Holders of rec. Dec. 20
Comp Hispano Amer. Elec.("Chad")o
of co
con
ut.. No.
.119
9
A, B Sr C shares, 35 gold pesetas
Hold,
D Sr E shares, 7 gold pesetas
*2
Jan. 1 'Holders of rec. Dec. 31
Dakota Central Telep., corn.(guar.)._
*I% Jan. 1 'Holders of rec. Dec. 31
Preferred (guar.)
'$1.75 Jan. 2'Holders of rec. Doc. 20
Dixie Gulf Gas,$7 pref.(guar.)
$3.40 Feb. 2 Holders of rec. Dec. 10
Edison Elec. Muni.(Boston) (guar.)
50c. Jan. 2 Holders of rec. Dec. 15a
Empire District El. Co., pref.(mthly.)50c. Feb. 1 Holders of rec. Jan. 15a
Preferred (monthly)
(mthly.)
_
2-3c Feb. 1 Holders of rec. Jan. 15
pref.
66
Empire Gas Sr Fuel,8%
581-3c Feb. 1 Holders of rec. Jan. 15
7% preferred (monthly)
Feb. 1 Holders of rec. Jan. 15
541-60
monthly)
preferred
(
634%
50c. Feb. 1 Holders of rec. Jan. 15
6% preferred (monthly)
75c. Jan. 15 Holders of rec. Dec. 31
English Elec., class A (guar.)
Fairmount Park Tramp.(Phila.).Pf.(qu) "1734 Jan. 10'Holders of rec. Dec. 31
"82.50 Jan. 2 *Holders of rec. Dec. 20
Gas Sr Elec. of Bergen Co
500. Feb. 2 Holders of rec. Jan. 154
Gas Sr Elec.Securities Co.corn.(mthly).
% Feb. 2 Holders of rec. Jan. 15a
Common (payable in corn.stock)
58 1-3c Feb. 2 Holders of rec. Jan. 154
Preferred (monthly)
Feb. 2 Holders of rec. Jan. 15a
1500.
common
(In
stock)
Co.,
Gas Securities
50c. Feb. 2 Holders of rec. Jan. 154
Preferred (monthly)
*50c. Dec. 31 'Holders of rec. Dec. 15
Hartford Gas common (guar.)
"25c. Dec. 31 *Holders of rec. Dec. 15
Common (extra)
•50c. Dec. 31 *Holders of rec. Dec. 15
Preferred (guar.)
(guar.)
*57c. Jan. 2 *Holders of rec. Dec. 18
Light
Haverhill Gee
Inter. Hydro-Elec.System, el. A (qu.)... (n) Jan. 15 Holders of rec. Dec. 26a
87%c Jan. 15 Holders of rec. Dec. 26a
rred
preferred
erfeferre
O rp
6
5%
3.5p
Iowa Southern Utilities, 7% pref.(cp.). *134 Dec. 31 'Holders of rec. Dec. 13
.
134 Dec. 31 *Holders of rec. Dec. 13
6 % preferred (guar.)
'134 Dec. 31 *Holders of rec. Dee. 13
*50c. Jan. 15'Holders of rec. Dec. 26
Kentucky Utilities, pref. (guar.)
700. Feb. 1 Holders of rec. Jan. 23
Keystone Telep. of Penna.. Prof.(guar.)
Jan. 10 "Holders of rec. Des. 31
*2
Lincoln Tel. Sr Tel., corn.(guar.)
"134 Jan. 10 *Holders of rec. Dec. 31
Preferred (guar.)
*
,11
,
Jan. 10'Holders of rec. Dec. 31
(guar.)
Telep.
Sec..
pref.
Lincoln
*200. Jan. 2'Holders of rec. Dec. 15
Maritime Tel. Sr Tel., corn.(guar.)
*134 Jan. 2 "Holders of rec. Dec. 15
7% preferred (guar.)
*3% Jan. 1 'Holders of rec. Dec. 20
Middlesex Water. preferred
*/2
Feb. 16 *Holders of rec. Jan. 15
Middle West Utilities, corn. (quar.)
Feb. 15 *Holders of rec. Jan. 15
Prof. 01.50 or 3-80ths sh. corn. stock)
*134 Jan. 1 *Holders of rec. Dec. 22
Miss. Valley Pub.Service, pref. B
38c. Jan. 31 Holders of rec. Dec. 31
Montreal Lt.. Ht.Sr Pow. Cons.(guar.).
Mountain State Power. pref.(guar.).. 134 Jan. 20 Holders of rec. Dec. 31
254. Jan. 15 Holders of rec. Dec. 31
National Fuel Gas (guar.)
National Power & Light, $6 Pref.(quar.) •$1.50 Feb. 2 *Holders of rec. Jan. 17
*114 Jan. 10 *Holders of rec. Dec. 15
Newark Telephone, pref.(guar.)
Jan. 2
43
N.J. & Hudson River Ry.& Ferry
New Orleans Pub. Service, pref. (qu.)__ $1.75 Jan. 2 Holders of rec. Dec. 15
Feb. 2 Holders of rec. Dec. 31
Northern States Pow.(Del.),00m.A(qu) 2
134 Jan. 20 Holders of rec. Dec. 31
7% preferred (guar.)
134 Jan. 20 Holders of rec. Dec. 31
6% preferred (guar.)
Dec. 31 Holders of rec. Dec. 29
Northwestern Bell 'Felon.. corn. (guar.). 2
Ohio Public Service,7% pref.(mthly.).- 58 1-3c Feb. 2 Holders of rec. Jan. 15a
50c. Feb. 2 Holders of rec. Jan. 15a
6% preferred (monthly)
412-31 Feb. 2 Holders of rec. Jan. 15a
5% preferred (monthly)
Oklahoma Natural Gas, pref.(guar.).- '134 Jan. 1 *Holders of rec. Dec. 15
Orange & Rockland Elec.. Pref.(guar.). "134 Jan. 1 *Holders of rec. Dec. 24
*50c. Jan. 2 "Holden of rec. Dec. 15
Pacific Sr Atlantic Telegraph
Panama Power Sr Light, pref.(guar.)... '154 Jan. 2 *Holden of ree. Dec. 17
"$10 Jan. 2 *Holders of rec. Dec. 1
Pembroke Elec. Light (annual)
Jan. 31 Holders of rec. Dec. 31a
1
Phila. Co., corn. old $50 par (guar.)._
134 Jan. 31 Holders of rec. Dec. 31e
Common old $50 par (extra)
Feb.
Co.,
$5
pref.
(qu.)
"51.25
2'Holders of rec. Jan. 10
Electric
Philadelphia
$1
Jan. 31 Holders of rec. Jan. 15
Phila. Rapld Transit, corn.(guar.)
Philadelphia Western By., pref.-divide nd omitted.
4004
Name of Company.
[VoL. 131.
FINANCIAL CHRONICLE
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
Public Utilities (Concluded).
Plainfield Union )% ater(guar.)
•81 Jan. 2 *Holders of rec. Jan. 2
Portland General Elec.,7% pr. pref.(qu) •134 Jan. 2 *Holders of rec. Dec. 15
First preferred (guar.)
'134 Jan. 2'Holders of rec. Dec. 15
Power Gas dr Water Service, pref.(n11.)- *150. Jan. 1 *Holders of rec. Dec. 22
Public Sem of Colo., 7% pref.(mthly.) 531-30 Feb. 1 Holders of rec. Jan. 150
6% preferred (monthly)
500. Feb. 1 Holders of rec. Jan. 154
5% preferred (monthly)
41 2-30 Feb. I Holders of rec. Jan. 15a
Pub.Serv. Corp.of N.J.,8% pt.(mthly.) *500. Jan. 31 *Holders of rec. Jan. 2
Rockville-WIllamantic Ltd., pref. (qIL) .131 Jan. 2 'Holders of rec. Dec. 15
6% preferred (quar.)
•146 Jan. 2 *Holders of rec. Dec. 15
St. Joseph Ry. Lt, 6: Pow.. pref.(qu.)
'114 Jan. 2 *Holders of rec. Dec. 15
Shasta Water. class A (guar.)
"37440 Jan. 1 *Holders of rec. Dec. 15
Southern Union Gas. class A (guar.).- *500. Jan. 2 *Holders of rec. Dec. 24
South Pittsburgh Water,8% pref. (qu.) 146 Jan. 15 Holders of rec. Jan. 2
7% preferred (guar.)
131 Jan. 15 Holders of rec. Jan. 2
Southwest Light & Power, pref.(guar.). "81.50 Jan. 2 *Holders of rec. Dec. 15
Class A
Dec. 31 *Holders of rec. Dec. 15
+13
Jan. 1 *Holders of roe. Dec. 15
Southwestern Gas & El.,8% prof.(q11.)- "2
Dec. 31 Holders of rec. Dec. 20
2
Standard Gas Light of N. Y., COM
Dec. 31 Holders of rec. Dec. 20
3
Preferred
Superior water, Lt. & Pow., pref.(qu.)- •144 Jan. I *Holders of rec. Dec. 15
Toledo Tract. Light & Pow.,6% pf(qu.) 134 Jan. 2 Holders of rec. Dec. 15
Western Massachusetts Cos. (quar.)
8834 c. Dec. 31 Holders of rec. Dec. 17
West Texas Utilities, $6 pref.(guar.)... .31.50 Jan. 1 'Holders of rec. Dec. 15
Winnipeg Elec. Co.. common-Dividend omitted
Wisconsin Electric Power.616% pf.(qu.) "134 Jan. 2 'Holders of rec. Dec. 15
8% preferred (guar.)
•144 Jan. 2 *Holders of rec. Dec. 15
Wisconsin Valley Elec. Co.. Prof
356 Jan. 2 Holders of rec. Dec. 31
Name of Company.
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
Miscellaneous (Continued).
Burns & Co., Ltd., pref.-Dividend dole rred.
Calhoun Mills, corn. (guar.)
•2 Jan. 1 'Holders of rec. Dec. 24
Canada Dry Ginger Ale(guar.)
*750. Jan. 15 *Holders of rec. Jan. 12
Canadian Cottons, Ltd., pref.(guar.)._ '134 Jan. 5'Holders of rec. Deo. 20
Canadian Industries,corn.(guar.)
*62340 Jan. 31 *Holders of reo. Dec.I 31
Common (extra)
*61.25 Jan. 31 *Holders of rec. Dec. 31
*I% Jan. 15 *Holders of rec. Dec. 31
Preferred (guar.)
Canadian WIrebound Boxes. com.A(qu.) *3740 Jan. 2 *Holders of rec. Dec. 15
Capital City Products, corn
•34e. Dec. 31 *Holders of rec. Dec. 15
Cavanagh-Dobbs, Inc., pref.-Dividend omitted.
Central Franklin ProcessFirst preferred (guar.)
"134 Jan. 2 "Holders of rec. Dec. 31
•131 Jan. 2 "Holders of rec. Dec. 31
Second preferred (guar.)
Second preferred (extra)
'134 Jan. 2 *Holders of rec. Dec. 31
Central Invest. Corp.(guar.)
•134 Jan. 1 *Holders of rec. Dec. 20
Central West Casualty (Detroit) (guar.) *60c. Jan. 1 *Holders of rec. Dec. 28
Extra
*1214c Jan. 1 *Holders of rec. Dec. 28
Chatham Phenix Allied Corn
*500. Dec. 31 *Holders of ref. Dec. 16
Chicago Ry. Equip., corn. (guar.)
•25c. Dec. 31 "Holders of rec. Dec. 20
7% preferred (guar.)
*4331c Dee. 31 'Holders of rec. Dec. 20
'750. Jan. 1 *Holders of rec. Dec. 20
Cincinnati Advertising Prod.(quar.)
Extra
*50c. Feb. 1 *Holders of rec. Jan. 20
Cincinnati Realty, corn. dr pref. (guar.). *1 14 Jan. 2 *Holders of rec. Dec. 23
Cities Service, common (monthly)
2340. Feb. 2 Holders of rec. Jan. 15a
114 Feb. 2 Holders of ero. Jan. 150
Common (payable in common stook)._
50. Feb. 2 Holders of rec. Jan. I5a
Preference B (monthly)
50c. Feb. 2 Holders of rec. Jan. 150
Preference and pref. BB (monthly)."40c. Jan. 2 *Holders of rec. Dec. 22
City Machine & Tool, cont. (quar.)
Clayton & Lambert(quar.)__.*10e. Dee. 31 *Holders of rec. Dec. 20
Cleveland Automatic Mach., pref.(qu.)_ $1.75 Dec. 31 Holders of rec. Dec. 18
BanksCleveland Builders Supply.-Dividend o mItted .
22
Dee.
rec.
American Union (guar.)
of
*Holders
Jan.
2
•61
Cleveland Union Stock Yards,com.(qu.) *50c. Dee. 31 *Holders of rec. Dec. 20
Fiatbush National (Brooklyn) (guar.)._ •75c. Dec. 31 *Holders of rec. Dec. 24
Jan. 2 *Holders of rec. Dec. 31
Columbian VLse & Mfg.,common (extra) "2
Jamaica National (quar.)
1+116 Dec. 31 *Holders of rec. Dec. 20
*4331c Jan. 15 "Holders of rec. Jan. 1
Commercial
Bookbinding (guar.)
20
Dec.
rec.
Dec. 31 *Holders of
Extra
•1
•400. Jan. 1 *Holders of rec. Dec. 15
Cohen (Daniel) Co., corn.(quar.)
Ozone Park National (Bkly11.)
•216 Jan. 1 'Holders of rec. Dec. 9
Dec. 31 *Holders of rec. Dec. 21
Conley Tank Car. pref.(guar.)
412
Peninsular
•65 Dec. 31 *Holders of rec. Dec. 31
"700. Jan. 2 *Holders of rec. Dec. 15
Connecticut Gas & Coke Sec..common
Queensboro National
Dec. 31 "Holders of rec. Dec. 15
*3
250. Jan. 2 Holders of rec. Dec. 20
Consolidated Bakeries (guar.)
South Shore(Staten Island)
Jan. 2'Holders of rec. Dec. 20
"2
Consolidated Car Heat, corn. (guar.).- *146 Jan. 15 *Holders of rec. Dec. 31
"1
Extra
Jan. 2 *Holders of rec. Dec. 20
Jan. 3 *Holders of rec. Dec. 22
*2
Consol. Retail Stores, pref.(quar.)
Jan. 2 *Holders of rec. Dec. 20
Tottenville Nat.(Staten Island)
*3
$IM Jan. 2 Holders of rec. Dec. 26
Coronet Phosphate
1+400. Dec. 31
Corporate Trust Shares
Trust Companies.
Creamery Package Mfg., corn.(guar.).- *60c. Jan. it 'Holders of rec. Jan. 1
Bank of Europe es Trust Co.(guar.).75c. Jan. 1 Holders of rec. Dec. 20
*146 Jan. 10 'Holders of rec. Jan. 1
Preferred (guar.)
Extra
25e. Jan. 1 Holders of rec. Dec. 20
"3734c Jan. IC 'Holders of rec. Dec. 28
Credit UM. Banking (guar.)
Dec. 15 *Holders of rec. Dec. 1
Bronxville
*5
Cresson eons. Gold min. & Mill (guar.) •lc. Jan. 10 'Holders of rec. Dec. 31
*2
Extra
Dec. 16 'Holders of rec. Dec. 1
114 Jan. 31 Holders of rec. Jan. 15
Crucible Steel, common (quar.)
Brooklyn (quar.)
Jan. 2 Holders of rec. Dec. 22
6
246 Jan. 15 Holders of roe. Jan. 5
Crum dr Forster, common (guar.)
Central Hanover Bk.& Tr.(guar.)
$1.50 Jan. 2 Holders of rec. Dec. 20
Mar. 31 Holders of rec. Mar.21
2
Preferred (quar.)
Extra
Jan. 2 Holders of rec. Dec. 20
$1
'3734c Jan. 1 'Holders of rec. Dec. 20
300. Jan. 2 Holders of rec. Dec. 23a Crystal Tissue (guar.)
Countymew $25 par stk.)(quar.)(No. 1)
*IM Doe. 31 *Holders of rec. Dec. 20
Empire (guar.)
600. Jan. 2 Holders of rec. Dec. 18a Crystalite Products, 7% pref. (guar.)._
Jan. 15 'Holders of roe. Jan. 5
'81
Extra
600. Jan. 2 Holders of rec. Dec. I80 Cudahy Packing, corn. (guar.)
31.75 Jan. 24 Holders of rec. Doe. 31
Deep Rock Oil Corp.,$7 prof.(qu.)
Fulton (quar.)
3
Jan. 2 Holders of rec. Dec. 22
*25c. Jan. 1 *Holders of rec. Dec. 15
Detroit Gray Iron Foundry
Globe Bank & Trust Co., Bklyn.(quar.) *61.50 Jan. 2 *Holders of rec. Dec. 20
500. Jan. 15 Holders of roe. Jan. 2
Devonshire Investing Corp.,corn.
Lawyers (guar.
"2 Dec. 31 *Holders of rec. Dec. 23
250. Jan. 16 Holders of rec. Jan. I
New York (guar.)
81.25 Jan. 2 Holders of rec. Dec. 200 Dictograph Products (guar.)
Dec. 31 Holders of rec. Dec. 22
2
Dixon(Joseph)Crucible(quar.)
Title Guarantee & Trust(guar.)
$1.20 Jan. 2 Holders of rec. Dec. 23
•250. Jan. 20 *Holders of rec. Dec. 31
Dome Mines, Ltd. (quar.)
Extra
60c. Jan. 2 Holders of rec. Dec. 23
Jan. IC *Holders of me. Dec. 19
Dominion Enineering Works, Ltd.(qu.). +11
Fire Insurance.
+1116 Dec. 31 *Holders of rec. Deo. 20
Downington Paper,corn.((Mara
Amer.Salam andra Corp.(guar.)
50c. Jan. 2 Holders of rec. Dec. 19
Preferred
*334 Dec. 31 *Holders of rec. Doe. 20
Continental
Dufferin Paving & Crushed Stone$1.20 Jan. 10 Holders of rec. Dec. 31
Fidellty-Phenix
First preferred (guar.)
"144 Jan. 2 *Holders of rec. Dec. 24
81.30 Jan. 10 Holders of rec. Dec. 31
Eastern Steel Products, corn.(quar.)...
50c. Jan. 2 Holders of rec. Dec. 20
Miscellaneous.
Jan. 2 Holders of rec. Dec. 20
Common (bonus)
$1
Abraham & Straus, Inc.. pref.(quar.)_. *131 Jan. 31 *Holders of rec. Jan. 15
Eastern Util. Investing,Pante.PL(qu.). $1.75 Feb. 2 Holders of rec. Dec. 30
Abstract Title & Mortgage of Buffalo,
$8 preferred (guar.)
$1.50 Mar. 2 Holders of rec. Jan. 30
Rochester & Lockport, corn.(guar.).- *400. Dec. 31 'Holders of rec. Dee. 18
$7 preferred (guar.)
81.75 Mar. 2 Holders of rec. Jan. 30
Affiliated Investors, Inc.,$6 Pf.(qu.)__ $1.50 Jan. 1 Holders of rec. Dec. 20
$1.25 Apr. 1 Holders of rec. Feb. 27
$5 prior preferred (guar.)
Alles& Fisher,Inc.(guar.)
"3744c Jan. 2 *Holders of rec. Dec. 22
Economy Grocery Stores (guar.)
*250. Jan. 15 *Holders of rec. Jan. 2
Aloe(8. T.) Co.,cont.(guar.)
63e. Jan. 2 Holders of rec. Dec. 20
Edmonton City Dalty 616% pref. (qu.) "131 Jan. 1 *Holders of rec. Dec. 15
144 Jan. 2 Holders of roe. Dec. 20
Preferred (guar.)
Elder Manufacturing,com.(quar.)
*250. Jan. 2 *Holders of rec. Dee. 20
Aluminum Co. of Amer., pref.(guar.).- •146 Jan. 1 *Holders of rec. Dec. 15
Class A (quar.)
•$1.25 Jan. 2 *Holders of rec. Dec. 20
Amer. Aggregates Corp.. pref. (guar.).- *144 Jan. 1 "Holders of rec. Dec. 20
Jan. 2 *Holders of rec. Dee. 20
*2
Preferred (guar.)
Amer. Asphalt Roofing, corn.(guar.)
*114 Jan. 15 *Holders of rec. Dec. 31
Family Loan Society. Partic. pref.(nu.). •87540 Jan. 1 "Holders of ec. Dec. 13
Jan. 15 *Holders of rec. Dec. 31
*2
Preferred (guar.)
*3746c Jan. 1 *Holders of rec. Dee. 13
Participating preferred (extra)
Amer. Bemberg Corp., pref.-Dividend passed
Dec. 31 *Holders of rec. Dec. 19
Farr Alpaca (quar.)
*2
Amer. Brake Shoe & Fdy., eera.(quar.) 80n• Dm 31 Holders of rec. Dec. 23a Federal American Co.,cont.(guar.).--- •30c. Jan. 1 *Holders of rec. Dec. 19
Common (quar.)
•30e. Jan. 1 *Holders of rec. Dec. 19
600 Mar.31 Holders of rec. Mar.20a
Common (extra)
Preferred (guar.)
"81.50 Jan. I *Holders of rec. Dec. 19
144 Dec. 31 Holders of rec. Dec. 23a
Preferred (guar.)
Preferred (guar.)
Jan. 15 *Holders of rec. Jan. 10
•$1
154 Mar. 31 Holders of rec. Mar. 200 Fenton United Cleaners (guar.)
Jan. 15 *Holders of roe. Jan. 10
American Felt Co. (guar.)
*61
116 Jan. 2 Holders of rec. Dec. 18
Extra
Fidelity & Casualty (N. y.)(guar.)._ *51.25 Jan. 3 *Holders of rec. Dee. 23
144 Jan. 2 Holders of roe. Dec. 23
Amer. Fruit Growers, Inc., pref.(qu.)_
Amer. foe Co., corn.(guar.)
Fifth Ave.Investing, corn. A At B & pref.-DIM endsom Med.
750 Jan. 26 Holders of rec. Jan. 9
Preferred (guar.)
81.50 Jan. 26 Holders of rec. Jan. 9
Filing Equipment Bureau, pref.(qu.)
*134 Jan. 2 *Holders of rec. Dec. 20
Finance co. of Aro,,Balt,com.A&B(gu.) 200. Jan. 15 Holders of rec. Jan. 5a
Amer. by. Co., Spgfleid, Ill., pref.(qu.) "4354c Jan. 1 'Holders of rec. Dec. 10
4354c Jan. 15 Holders of rec. Jan. 56
*61
American Optical Co., corn. (quar.)
Dec. 19 "Holders of rec. Dec. 10
Preferred (guar.)
254. Jan. 20 Holders of rec. Jan. 5
Amer. Potash & Chemical (guar.)
*25c Dec. 31 *Holders of rec. Dec. 20
Firestone Tire & Rubber,corn.(gu.).13-4 Mar. 2 Holders of rec. Feb. 13
10314 Dec. 31 *Holders of rec. Dec,. 10
Amer. Republics Corp., pref
Preferred (quar.)
*116 Ian. 2 "Holders of rec. Dec. 20
American Screw tquar.)
Fishman(M.H.)Co., pref. A.& B.(qu.) 81.75 Jan. 15 Holders of rec. Jan. 2
Amer. Shipbuilding, corn,(guar.)
Fitz EliMOTIS & Connell Dredge & Dock•81.2.1 Feb. I *Holders of rec. Jan. 15
*134 Jan. 1 *Holders of rec. Dec. 20
•141 Feb. 1 *Holders of rec. Jan. 15
Preferred (guar.)
Preferred (guar.)
Amer. Zinc, Lead & Smelt., pref.-Divi dend o nitted
Foote Bros. Gear & Mach., pref,-Divi dend o -flitted.
rec.
Dec.
24
of
*250. Dec. 31 *Holders of rec. Dec. 24
344 1)e0. 31 Holders
Anglo-Norwegian Holdings, Ltd., pref.
Fostoria Pressed Steel, corn
•500. Jan. 2 *Holders of rec. Dec. 24
Arrow-Hart-Hegeman Elec.. corn.(qu.) *75c Jan. 1 *Holders of roe. Dec. 24
Franklin Proems. corn. (guar.)
Feb. 1 *Holders of rec. Jan. 15
•81
Freeport Texas Co.(guar.)
Preferred (guar.)
* 81.625 Jan. 1 *Holders of rec. Dec. 24
*60c. Jan. 15 *Holders of rec. Dec. 91
400. Jan. 2 Holders of rec. Dec. 20a Fyr-Fyter Co., class A (guar.)
Art Metal Construction(guar.)
*750 Jan. 2 *Holders of rec. Doe. 24
•75c. Jan. 2 *Holders of rec. Dec. 22
Arundel Corp.(guar.)
Gemmer Mfg., class A (guar.)
General Mach.Corp.,7% pref.(quar.).- 1+134 Jan. 1 *Holders of rec. Dee. 22
Associated Industrial Bankers
Jan. 2 Holders of roe. Dee. 15
61
Cora. A (guar.)(No.1)
General Utilities Corp. 7% lg. (mthie.) •5816c Jan. 1 *Holders of rec. Dec. 25
. •25c. Feb. 16 "Holders of rec. Feb. 5
*$1.50 Dec. 31 *Holders of rec. Dee. 20
Atlantic Steel, corn.(guar.)
Gilbert(A.C.) Co corn.(411W
•87460 Jan. 2 *Holders of rec. Dee. 20
*500. Jan. 15 *Holders of rec. Dec. 31
Atlas Plywood (guar.)
Preferred (guar.)
Gillette safety Razor $8 pref.(qu.)(No.1)•11.25 Feb. 2 *Holders of roe. Jan. 2
Austin. Nichols & Co., prior A (guar.).- *750. Feb. 1 'Holders of rec. Jan. 15
+20c. Dec. 28 *Holders of rec. Dec. 22
*Homers
of
rec.
Dec.
28
1
(mthly.)
Jan.
•50c.
Y.)
(qu.)_
Bankers Commercial Sec.(N.
Gilmore Gasoline Plant No. 1
Bankers Shares, corn.-Dividend omitted
Globe-Wernicke, corn., dividend omitted
500. Jan. 1 Holders of rec. Deo. 18
"750. Jan. 15 *Holders of rec. Dec. 31
Bayuk Cigars, Inc., coca. (guar.)
Godchaux Sugars,Inc.,el. A(guar.).
134 Jan. I Holders of rec. Dec. 18
•134 Jan. 15 *Holders of rec. Dec. 31
Preferred (guar.)
First preferred (guar.)
*6214c Feb. 2 *Holders of rec. Jan. 10
Gold Dust Corp.. corn. (guar.)
Beath (W. D.) & Sons, Ltd., class A__. *20c. Jan. 2 *Holders of rec. Dec. 20
134 Feb. 2 Holders of rec. Jan. 12
Benson & Hedges, Ltd., pref.(guar.)._ '131 Jan. 2 *Holders of roe. Dec. 20
Gotham Silk Hosiery, pref.(qu.)
134 Jan. 1 Holders of rec. Dec. 20
•300. Dec. 31 *Holders of rec. Dec. 20
Berry Motor(guar.)
Gottfried Baking,pref.(qu.)
•144 Dec. 31 *Holders of rec. Dee. 15
10134
Bibb Mfg.,common
Graham-Palge Motors pref.(q11.)
50c. Feb. 2 Holders of rec. Jan. 1130
)
3
Pow.
(qu
Granby Consol. MM.Smelt &
Preferred (call at 103 on Jan. 1)
*214 Jan. 1 "Holders of rec. Dee. 22
144 Jan. 2 Holders of rec. Dec. 19
Gray & Dudley. corn.(guar.)
Bissell & Co., pref.(guar.)
Jan. I "Holders of rec. Dec. 22
"134
Black & Decker Mfg.,corn.-Dividend o mitted .
Preferred (guar.)
*50c. Jan. 1 "Holders of rec. Dec. 17
*500. Jan. 1 "Holders of rm. Dec. 28
Gray.Telep. Pay Station (guar.)
Preferred(guar.)
*75c. Jan. 1 *Holders of rec. Dee. 17
25c. Jan. 2 Holders of rec. Dec. 20
Bliss(E. W.), common (guar.)
Extra
+250. Dec. 22 *Holders of roe. Dec. 15
Jan. 2 Holders of rec. Dec. 20
Great Lakes Engineering (extra)
Common (payable in common stock).- 12
114 Jan, 2 Holders of rec. Dec. 18
Apr. 1 Holders of rec. Mar.20
Green (Daniel) Co.. pref.(mar.)
Common(payable in common stock).- 12
Jan. 1 *Holders of rec. Dec. 20
•8714c
June
July
1
12
stock)._
Holders
of
rec.
20
(guar.)
common
Greif
A
(payable
in
(L.)
class
& Bros.,
Common
Oct. 1 Holders of rec. Sept. 20
•134 Jan. I "Holders of rec. Dec. 20
7% preferred (quar.)
Common(payable in common stock)._ 12
*S1.75 Jan. 1 *Holders of rec. Dec. 21
81 Jan. 2 Holders of rec. Dee. 20
Greyhound Corp., pref. A (quar.)
First preferred (quar.)
*500. Jan. 2 *Holders of rec. Dec. 21
87540. Jan. 2 Holders of rec. Dec. 20
Guardian Detroit Union Group (qu.)
Second preferred, class A (guar.)
1+300. Jan.. 2 *Holders of roe. Dec. 21
150. Jan. 2 Holders of rec. Dec. 20
Extra
Second preferred. class B (quar.)
•30c. Doe. 31 *Holders of rec. Dec. 20
'154 Feb. 1 "Holders of rec. Jan. 20
Guilford Realty Co.. com.(guar.)
Bloomingdale Bros., Inc.(guar.)
•134 Dec. 31 *Holders of rec. Dec. 20
•$1 Dee. 31 *Holders of rec. Dec. 20
7% preferred (guar.)
Bornot. Inc. $2 class A
*116 Doe. 31 *Holders of rec. Dec. 20
Boston Herald-Traveler Corp., com.(qu) 40e. Jan. 2'Holders of rec. Dec. 20
6% Preferred (guar.)
20c. Jan. 2 Holders of rec. Doe. 24
28
Deo.
+250.
Alabastine,
Ltd
rec.
Dee.
31
*Holders
of
(special)
Gypsum,
Lime
&
Bourjouls,Inc..common
*8715c Jan. 1 'Holders of rec. Dec. 22
•11.50 Jan. 2 "Holders of rec. Dec. 24
Hachineister-Lind, pref. (guar.)
Brandtjen & Kluge, pref.(quar.)
fe) Jan. 18 See note(e)•
Hamilton Watch,corn,(no par)(mthly.) 11.150. Jan. 31 *Holders of roe. Jan. 10
British-American Tobacco,ordinary
(9) Jan. 19 See note (e).
•300. Jan. 31 *Holders of rec. Jan. 10
Common $25 par
Ordinary (Interim)
Hayes-Jackson Corp., pref.-Dividend omitted
Ilc. Feb. 2 Holders of rec. Jan. 2
British Type Investors (bi-monthly)
*Holders
of
rec.
Dec.
31
15
Jan.
*50c.
Ltd..
pref.
(qu.)
"131 Jan. 1 "Holders of rec. Dec. 20
Hayes
Forg.,
Wheel &
Brompton Pulp & Paper (guar.)
Henry Furnace & Fdy., prof. (guar.)._ •131 Jan. 2 *Holders of rec. Dee. 20
Brooklyn Mtge. Guar.& Tr.(guar.)._ 91.59 Der. 30 'Holders of rec. Dec. 17
Jan. 7 *Holders of rec. Dec. 24
*3
"134 Jan. 2 "Holders of rec. Doe. 20
Heyden Chemical, pref.(guar.)
Builders Exchange Bldg.(Baltimore)
Jan. 7 *Holders of rec. Dec. 24
*7
Hibbard,Spencer,Bartlett Co.,(mthly.) 25c Jan. 30 Holders of rec. Jan. 23
Extra
50c. ran. 2 Holders of rec. Dec. 23
•75c Jan. 1
Higbee Co. (guar.)
Building Prod.. cl. A & B (guar.)
Holt Renfrew & Co., Ltd., corn -No action taken
•144 Feb. 2 *Holders of rec. Jan. 11
Bulb° ks. Inc.7% pref. (guar.)
10144 Jan. 21 *Holders of rec. Dec. 28
Preferred (guar.)
Burma Corp. 'Amer. dep receipts
Feb. 20 Holders of roe. Jan. 14
Home Title Insurance (guar.)
•75c Dec. 3 *Holders of rec. Dec. 24
Div.of 2 annas plus bonus of 1 anus*250 Dec. 3 *Holders of rec. Dee. 24
Extra
Burnham Tradinsr Corn.. pref. A.-Div!dend o miffed.
DEC. 20 1930.]
Name of Company.
•
FINANCIAL CHRONICLE
Per
When
Cells. Payable.
Books Closed.
Days inclusive.
Miscellaneous ((Jontinued).
Hope Engineering Corp., pref. (guar.)._ "I% Jan. 2 *Holders of rec. Dec. 15
Howe Sound Co.(guar.)
$1
Jan. 15 Holders of rec. Deo. 31a
Howell Elec. Motor (quar.)
*250. Dec. 31 *Holders of rec. Dec. 16
Extra
*e2
Deo. 31 *Holders of reo. Dec. 16
Huston (Torn)Peanut Co., pref
*3t4 Dec. 31 *Holders of rec. Dec. 20
Huylers of Del., Inc., pref.(guar.)
"131 Jan. 2 *Holders of reo. Dec. 20
Ideal Cement, common (guar.)
.750. Jan. 1 *Holders of reo. Dec. 15
Common (extra)
"50e. Dee, 22 *Holders of rec. Dec. 15
Ideal Investments, Ltd
*5 Jan. 2 *Holders of roe. Dec. 31
Income Shares Corp.(monthly)
*33e. Jan. 1 "Holders of rec. Dec. 25
Incorporated Investors (guar.)
•25e. Jan. 15 *Holders of rec. Dec. 22
Extra
•100. Jan. 15 *Holders of rec. Deo. 22
Indemnity Mtge. Sec
•10c. Jan. 1 "Holders of rec. Dec. 15
Independent Pneumatic Tool (guar.)... "31 Jan. 6 *Holders of rec. Dec. 26
Industrial Acceptance, lot pref. (guar.) 131 Jan. 2 Holders of reo. Deo. 19
Industrial Loan A Guaranty (guar.).- *2 Dm. 31 *Holders of rec. Dee. 15
Inland Investors, common (guar.)
*600. Jan. 2 *Holders of reo. Dec. 19
Interlake Steamship (quar.)
Dec. 31 Holders of reo. Dee. 18
$1
Internat. Business Machines (guar.)... $1.50 Jan. 10 Holders of reo. Deo. 200
Stock dividend (5 shares for each 15111) (f) Jan. 10 Holders of reo. Dec. 20a
International Carriers
*250. Jan. 2 "Holders of reo. Dee. 26
Internat. Paper,7% pref.(guar.)
131 Jan. 15 Holders of rec. Dec. 26a
Interstate Dept. Stores, corn. (guar.). 500. Dec. 30 Holders of reo. Dec. 24
Investors Corp. of Rhode IdiandFirst,second and convert.stocks(qu.) $1.50 Jan. 2 Holders of rec. Deo. 20
Invest. Stock & Bond Corp
*10c. Deo. 20 *Holders of rec. Dec. 1
Investors Equity, com.-Dividend omit ted.
Island Creek Coal, corn. (guar.)
$1 Jan. 1 Holders of rec. Deo. 26
Preferred (guar.)
$1.50 Jan. 1 Holders of rec. Dec. 26
Johnson Publishing, corn.(guar.)
*500. Jan. 2 *Holders of rec. Dec. 22
Preferred (guar.)
"2 Jan. 2 *Holders of rec. Dec. 22
Journal of Commerce Corp., Pref.(qu.). 51.75 Jan. 1
Kawneer Co.(guar.)6231c.or 2% stock_
Jan. 15 *Holders of rec. Dec 31
Kelley Island Lime & Transport rqu.)„ 6231c.Jan. 2 Holders of reo. Dec. 19
Kellogg Co
Dec. 27 *Holders of rec. Dec. 13
•52
Kelsey-Hayes Wheel, pref. (asar.)
Feb. 1 'Holders of reo. Jan. 20
Keystone Steel & Wire,com.-No action taken.
Preferred (guar.)
•181 Jan. 15 *Holders of rec. Dec. 31
King Royalty Co., pref. (quar.)
2
Dec. 31 Holders of rec. Dec. 15
Knott(A. J.) Tool dr Mfg., corn
7
Jan. 2 Holders of reo. Dee. lb
Preferred (guar.)
131 Jan. 2 Holders of rec. Deo. 15
Kobacher Stores-Dividend omitted
Laclede Steel (guar.)
"50e Dec. 31 "Holders of rec. Dec. 22
La Salle Extension University, pt. (qu.)
Jan. 2 Holders of reo. Dec. 20
Land dr Royalty
cl. A (monthly). *8 1-30 Jan. 1 "Holders of rec. Dec. 25
Landers Frary & Clark
Corp..
(quar.)
.41 Jan. Ill *Holders of roe. Dec. 17
Lawyers Westchester Mtge.& Title(qu.) 2
Jan. 2 Holders of reo. Dec. 20
Extra
2
Jan. 2 Holders of rec. Deo. 20
Leland Electric co., common
*500. Jan. 1 *Holders of rec. Deo. 20
Lincoln Mortgage Co.of California,
(guar.)._.
pref.-DWI dend o mitted
Link Belt Co.,corn.((luar.)
"60e. Mar. 1 "Holders of reo. Feb. 15
Preferred (guar.)
•184 Jan. 2 "Holders of rec. Dec. 16
Lion 011 Refg.-Dividend omitted.
Lord & Taylor,2nd pref.(guar.)
Feb. 2 Holders of reo. Jan. 170
2
Ludlow Typozraph,corn.(guar.!
50c. Jan
1 Holders of rec. Dec. 21
Preferred (guar.)
13( Jan. 1 Holders of rec. Dec. 21
Ludlow Valve Mfg.. prof
•4 Jan. 2 *Holders of rec. Dec. 17
Lemming Mfg.,8% pref.(guar.)
*2
Jan. 2 *Holders of rec. Dec. 26
Lyons dr Magnus, pref.-Dividend °mitt ed.
MacAndrews & Forbes,corn.(guar.)._ _
650. Jan. 15 Holders of rec. Dec. 31a
Preferred (guar.)
131 Jan. 15 Holders of rec. Dec. 3I0
MacKinnon Steel, pref.(guar.)
Feb. 2 Holders of rec. Jan. 15
Madison Square Garden Co.(guar.)._ •150. Jan. 15 *Holders of rec. Jan. 5
Magma Copper Co.(guar.)
75e. Jan. 15 Holders of rec. Dec. 31
Mansfield Theatre Co.(Toronto) pre
331 Jan. 30 "Holders of rec. Dec. 31
Manufacturers Finance, 1st pf. (guar.). •4381c Dec. 30 *Holders of rec. Dec. 20
Second preferred-Dividend omitted
Marcus Loew's Theatres (Can.). pref.__ 334 Jan. 15 Holders of reo. Dec. 31
Marine Bancorporation (guar.)
*450. Jan. 1 *Holders of reo. Dec. 16
Maryland Casualty $10 par (guar.).- "5681c Dec. 31 *Holders of rec. Dec. 18
$25 par ((luar.)
* 51.125 Dec. 31 *Holders of rec. Dec. 18
MeCrady-Rogers Co.. pref. (guar.).- *871.dc Dec. 31 "Holders of rec. Dec. 20
MeGavin, Lldy, pref. (guar.)
*131 Dec. 31 *Holders of rec. Dec. 20
McLeod Bldg. Ltd.(guar.)
*I% Jan. 1
MeQuay Norris Mfg.(guar.)
"75c. Jan. 2 *Holders of ree. Dec. 22
Merchants Discount(guar.)
"3780 Dec. 31 "Holders of rec. Deo. 23
Extra
"25e. Dec. 31 *Holders of reo. Dec. 23
Merchants Ice & Cold Storage pret.(gu.) *131 Dec. 31 "Holders of rec. Dec. 22
Merchants Refrig. of N. Y.(guar.).- •50c. Dec. 31 *Holders of rec. Dec. 22
Merchants Transfer & Storage. corn-- - _ •2
Jan. 1 *Holders of rec. Dec. 22
Preferred (guar.)
"131 Jan. 1 *Holders of rec. Dec. 22
Metal Package Corp., corn.(guar.).- 51 Jan. 2 Holders of rec. Dec. 17
Metal Textile Corp.. corn
"250. Jan. 15 *Holders of rec. Jan. 1
Participating pref.(guar.)
*81 He Jan. 15 *Holders of rec. Jan. 1
Participating pref.(extra)
•25e. Jan. 16 *Holders of rec. Jan. 1
Metropolitan Ice, pref.(guar.)
Jan. 2 *Holders of rec. Dec. 15
Preferred (extra)
•30e. Jan. 2 "Holders of rec. Dec. 15
Metropolitan Industrial Bankers, COM.250. Jan. 1 Holders of ree. Dee. 24
Preferred (guar.)
Jan, 1 Holders of rec. Dee. 24
Mitten Bank Securities Corp., corn...... 231 Feb. 16 Holders of rec. Deo. 31
Preferred (guar.)
331 Feb. 16 Holders of re. Dee. 31
Mohawk Investment Trust(guar.)._ •50c. Jan. 15 *Holders of rec. Jan. 1
Mortgage-Bond Co.(guar.)
1
Dec. 29 Holders of rec. Dec. 19
Mortgage-Bond dr Title Corp.(qu.)
150. Dec. 31 Holders of rec. Dec. 19
Preferred
234 Dec. 31 Holders of rec. Dec. 19
Mt. Vernon Woodberry Mills, pf.(qu.)- "131 Jan. 15 *Holders of rec. Dec. 31
Preferred (acct, serum. dividends)-. IV ,,i Dec. 31 *Holders of rec. Dec. 15
Mountain & Gulf Oil Corp.(guar.)
'131c. Jan. 15 *Holders of rec. Dec. 31
Nashua Gum.a: Coated Paper, W.(q.I.). *151 Jan. 2 *Holders of rec. Dec. 24
Nashua Mfg., Prof., dividend omitted.
National Carbon, pref.(guar.)
*2
Feb. 2 *Holders of rec. Jan.
National Cash Register, class A (guar.). *75c. Jan. 15 *Holders of reo. Deo. 20
30
Class B
*51.50 Jan. 3 *Holders of rec. Dee. 31
National Grocers. ltd., Prof. (quar.)... "2
Jan. 2 *Holders of rec. Dec. 15
National Oil Products, corn
"500. Jan. 2 *Holders of rec. Dec. 20
Common (extra)
"50e. Jan. 2 *Holders of rec. Deo. 20
Newmont Mining Corp.(guar.)
$1
Jan. 15 Holders of rec. Dec. 31
New Bradford 011(guar.)
•10o. Jan. 15 *Holders of rec. Dec. 31
New England Equity, prof. (guar.)
*2 Jan. 2 *Holders of rec. Dec. 15
N. Y. Air Brake (guar.)
600. Feb. 1 Holders of rec. Jan. 11
N.Y.State Holding Co., corn.(guar.)._
500. Deo. 31 Holders of reo. Dec. 15
Preferred (guar.)
184 Dec. 31 Holders of rec. Deo. 15
N.Y.Title dr Mtge.(guar.)
*50e. Dec. 31 *Holders of rec. Dec. 19
N. Y.Trap Rock, $7 pref.(guar.)
"$1.75 Jan. 2 "Holders of reo. Dee. 20
Niagara Wire Weaving,corn.(guar.). _ _ 37340. Jan. 2 Holders of reo. Dec. 20
Preferred (quar.)
750. Jan. 2 Holders of rec. Dee. 20
Niels-sing Mines ((uar.)
*731c Jan. 20 *Holders of rec. Dec. 31
Noel Sueurities Co., pref. (guar.)
*2 Dec. 31 *Holders of rec. Dec. 20
North Amer. Car Corp.,coin.(quar.).... 6231c. Jan. 1 Holders of ree. Dec. 24
Preferred (guar.)
$1.50 Jan. 1 Holders of rec. Dec. 24
North Star 011 & Ref., pref. (quar.)
*5)1c. Jan. 2 "Holders of rec. Deo.
Northern Paper Mills, coin. (guar.)._ _ *50e. Dec. 31 *Holders of reo. Dec. 15
23
6% preferred (guar.)
•lti Dec. 31 *Holders of rec. Dec. 23
7% preferred (guar.)
•181 Dec. 31 *Holders of reo. Deo. 23
Norwich Pharmacal Co.(guar.)
$1
Jan. 1 Holders of rec. Dec. 20
Extra
31
Jan. I Holders of rec. Dec. 20
Oceanic 011 (extra)
*20. Deo. 22 *Holders of rec. Dec. 15
Ogilvie Flour Mills, corn.(guar.)
"2
Jan. 2 *Holders of rec. Dec. 23
Ohio Brass, corn. A (guar.)
'41.25 Jan. 15 *Holders of rec. Dec. 31
Common B (guar.)
*$1.50 Jan. 15 "Holders of rec. Dec. 31
preferred (guar.)
•134 Jan. 15 *Holders of rec. Dec. 31
Onondaga Silk Co.,corn.((luar.)
•20e. Dec. 31 *Holders of rec. Dec. 20
*112J4e Jan. 15 *Holders of rec. Dec. 31
Otis Elevator, corn. (guar.)
"33c. Jan, 2 *Holders of rec. Dec. 15
Pacific Finance Corp
•35e. Jan. 2 "Holders of rec. Dec. 15
Pacific Indemnity (quar.)
"25e. Jan. 15 *Holders of rec. Dec. 31
Packard Electric. corn. (guar.)
*75e. Jan. 2 *Holders of roe. Dee. 19
Penwell Corp.,83 pref.(guar )
Petroleum Royalties, part. pf.(mthly)._ 'be. Jan. 2 "Holders of rec. Dec. 21
Peasleo-Gaulbert Co., pref. (guar.)._ "131 Jan. 2 *Holders of rec. Dec. 23
•131
131
131
*131
131
Name of Company.
4005
Per
When
Cent. Payable.
Books Closed.
Days Inclustre.
Miscellaneous (Continued).
Pennsylvania Salt Mfg.(guar.)
•$1.25 Jan. 15 *Holders of rec. Dec. 31
Pennsylvania Wire Glass, corn. (guar.). •1% Jan. 2 *Holders of rec. Dec. 22
Preferred (guar.)
'131 Jan. 2 *Holders of rec. Dec. 22
Personal Banking Service, class A (guar.) •150. Dec. 15 *Holders of rec. Dec. 1
Petroleum Landowners Corp.(mthly.).- •250. Jan. 15 *Holders of roe. Dee. 31
Petroleum Royalty. pref.(mthly.)
'lc. Jan. 1 *Holders of roe. Dec. 25
Philadelphia Bourse, common (No. 1)-- *El
Feb. 2 *Holders of rec. Dec. 31
Preferred
*51.50 Feb. 2 *Holders of rec. Dec. 31
Phila. Co. of Guar. Mtgs.(guar.)
600. Dec. 31 Holders of rec. Dec. 15
Phila. Dairy Products, prior pfd.(qu.).' 51.625 Jan. 2 *Holders of rec. Dec. 19
Phila Insulated Wire
"52.50 Feb. 2 *Holders of rec. Jan. 15
Phoenix Financial Corp., pref. (guar.)._ *50e. Jan. 10 *Holders of rec. Dec. 31
Pickedl Walnuts (guar.)
20e. Jan. 2 Holders of rec. Dec. 20
Pickwick Corp., 8% pref. (guar.)
•20o. Jan. 20 *Holders of rec. Dec. 15
7% preferred (guar.)
•1734c Jan. 5 *Holders of rec. Dec. 15
Pittsburgh Forging (guar.)
•25c. Jan. 25 *Holders of rec. Jan. 15
Pittsburgh Screw ds Bolt (guar.)
*35e. Jan. 15 *Holders of rec. Dec. 23
Plimpton Mfg.(extra)
*3
Dec. 20 *Holders of rec. Dee. 13
Potter Co., corn. (guar.)
•250. Jan. 1 'Holders of rec. Dec. 27
Pratt & Lambert, common (guar.)
81
Jan. 2 *Holders of rec. Dec. 16
Premier Shares, Inc. (guar.)
18310. Jan. 15 Holders of rec. Jan. 2
Providence Paper. pref. (guar.)
•$1.75 Jan. 2 *Holders of rec. Dec. 15
Regal Shoe, pref.(guar.)
•181 Jan. 2 *Holders of rec. Dec. 20
Reliable Stores corp.(stock div.)(guar.) *el% Jan. 1 *Holders of rec. Dec. 20
Republic Steel. pref.-Dividend omitted
Reversible Collar (guar.)
•$1.50 Jan. 2 *Holders of rec. Dec.16
Rice Stix Dry Goode 1st & 2nd pf.(qu.)_
181 Jan. 2 Holders of rec. Dec. 15
Rockaway Point Devel.. 55 pref.(guar.) "S1.50 Jan. 2 "Holders of rec. Dec. 15
St. Lawrence Paper Mills. pref.(guar.). '131 Jan. 15 "Holders of rec. Dec. 31
St. Louis Nat. Stock Yards (quar.)
•2 Jan. 1 *Holders of rec. Dec. 20
Sarnia Bridge. Ltd., class A (quar.)
50c. Jan. 2 Holders of rec. Dec. 15
Schoeneman (J.) Inc., pref.(guar.)
181 Jan. 2 Holders of rec. Dec. 15
seaboard Nat. Sec.(guar.)
•3731c Jan. 2 *Holders of rec. Dec. 20
Segal Lock & Hardware, pref.(guar.)._ •8731e Jan. 15 *Holders of roe. Deo. 31
Seagrave Corp., corn.(guar.)
•15c. Jan. 15 *Holders of rec. Deo. 31
Preferred (guar.)
*131 Jan. 5 *Holders of rec. Dec. 20
'
. Inv. Tr., Ltd
Second Canada Gen
"25c. Jan. 2 *Holders of rec. Dec. 15
Seeman Bros., Inc., corn. (guar.)
75e. Feb. 1 Holders of rec. Jan. 15
Segal Lock ds Hardware, pref. (guar.).- •8734c Jan. 15 "Holders of rec. Dec. 31
Shaler Co., class A (guar.)
*50c. Jan. 1 *Holders of rec. Dec. 20
Shawmut Association (guar.)
•20c. Jan. 2 *Holders of rec. Dec. 17
Sheaffer(W.A.) Pen, pref.(guar.)
•2
Jan. 20 *Holders of rec. Dec. 31
Shenandoah Corp..6% pref. (quar.)-- (q) Feb. 1 Holders of rec. Jan. 5
Sieloff Packing (Var.)
30e. Jan. 2 Holders of rec. Dec. 20
Extra
30e. Jan. 2 Holders of rec. Dec. 20
.
Signed° Steel Strapping, corn. (guar.).- •1231c Jan. 15 *Holders of rec. Dec. 31
Preferred (guar.)
*62He Jan. 15 *Holders of rec. Dec. 31
Silver King Coalition Mining (guar.)._ •I5e. Jan. 2 *Holders of rec. Dec. 20
Slattery(E. T.) Co., prof.(guar.)
*In Jan. 00
Sloan dr Zook Prod., corn.(guar.)
•50c. Dec. 22 *Holders of rec. Dec. 19
Preferred (guar.)
•131 Dec. 22 *Holders of rec. Dec. 19
Smith (E. L.) Oil Co
41
Jan. 10 *Holders of rec. Dec. 15
Smythe mu.(guar.)
*51.50 Jan. 2 "Holders of rec. Dec. 16
S. M.A. Corp., corn.(guar.)
"75c. Jan. 2 *Holders of rec. Dec. 20
Common (extra)
•13 Jan. 15 *Holders of rec. Dec. 20
Southern Bankers Security Pref.(guar.) *131 Jan. 2 *Holders of rec Dec. 19
Southern Franklin Process, cont.(guar.) •25c. Dee. 24 *Holders of rec. Dec. 29
Southwestern Port!. Cement, corn.(qu.) •$1.50 Jan. 1
Common (extra)
Dec. 24
'$1
Preferred ((uar.)
Jan. 1
*52
Spicer Mfg., pref. (guar.)
•750. Jan. 15 *Holders of rec. Jan. 2
Standard 011(Ohio) pref.(quite.)
131 Jan. 15 Holders of reo. Dec. 31
Standard Screw. corn. (guar.)
2
Jan. 2 Holders of rec. Dec. 18
Preferred
3
Jan. 2 Holders of rec. Dec. 18
Standard Wholesale Phosp. & Acid (an.) •300. Jan. 15 *Holders of rec. Dec. 31
Stanley Works,corn,(guar.)
•62310 Jan. 2 *Holders of rec. Dec. 12
State Street Invest.'tr. (atiar.)
•750. Jan. 15 *Holders of rec. Jan. 1
Stedman Rubber Flooring, pref. (guar.) .1.131 Jan. 2 *Holders of rec. Dee. 2f1
steneck Title & Mtge. Guaranty (an.).. *10e. Dec. 31 *Holders of rec. Dec. 15
Extra
•5e. Dec. 31 *Holders of roe. Dec. 15
Stetson (John B.) Co.,common
*$1.50 Jan. 15 *Holders of rec. Jan. 1
Preferred
*51
Jan. 15 *Holders of reo. Jan. 1
Stromberg Electrical Co.,el. A &B-Dlv idends omitted
Superior Underwear. pref. (guar.)
'131 Dec. 31 *Holders of roe Dee. 20
Sweets Co. of Amer.(guar.)
25c. Feb. 2 Holders of ree. Jan. 15
Telautograph Corp. corn. Mar.)
"350. Feb. 1 *Holders of reo. Jan. 15
Temple Bar Bldg. 7
.
% pref.(guar.)._ __ '131 Jan. 1 *Holders of rec. Dec. 31
Textile Banking (guar.)
•50e. Jan. 2 *Holders of rec. Dec. 24
Third Canada Gen'l Invest. Tr.. Can.. 'Sc. Jan. 2 *Holders of rec. Dec. 15
Thomas Allee. Corp.. class A-Dividend deferred
Thrift Stores, Ltd.. 2% 1st pref.(guar.) '4014c Jan. 2 *Holders of rec. Dec. 20
•17t4c Jan. 2 *Holders of rec. Dee. 20
7% second preferred (guar.)
'Filo Roofing,corn.(guar.)
•1731c Jan. 2 *Holders of rec. Dec. 20
Common (extra)
*300. Jan. 2 *Holders of rec. Dec. 20
Preferred (guar.)
•50e. Jan. 2 *Holders of rec. Dee. 20
Title insuninee (Minn.)((uar.)
'131 Jan. 1 *Holders of rec. Dec. 20
Title& Mortgage Guar.(New Orleans)._ •2
Jan. 1 *Holders of rec. Dec. 31
Title Securities Co.(guar.)
'131 Jan. 1 "Holders of rec. Dec. 27
Tooke Bros. Ltd., pref. %quer.)
.0181 Jan. 15 *Holders of rec. Dec. 31
Corp.6% pf. (I111.) 134 Jan. 8 Holders of rec. Dec. 20
Tri-National
Trustees Ln.& Guar.(Birmingham)(on.) '131 Dec. 31 *Holders of rec. Dec. 15
Trustees System Co.of Balt. pf.((uar.). •131 Dec. 31 *Holders of roe. Deo. 15
•5.; Dec. 31 *Holders of rec. Dec. 15
preferred (special)
Trustees System Co. of Chic. pf.(qu.)
.1.114 Dec. 31 "Holders of rec. Dec. 15
Preferred (special)
I.% Dec. 31 *Holders of rec. Dec. 15
Trustees Syst. Co. of Indianan. pf.(Cluj •131 Dec. 31 *Holders of rec. Dec. 15
Preferred (special)
•H Dec. 31 *Holders of rec. Dec. 15
Trustees Syst. Co.of Lousy. pt.(Oit.).- •131 Dec. 31 *Holders of rec. Dec. 15
Preferred (special)
•H Dee. 31 "Holders of rec. Dec. 15
Tudor City Fifth Unit Inc., pref
3
Jan. 15 Jan. I to Jan. 15
mum Guar. & Mtge. (guar.)
91.50 Jan. 2 *Holders of rec. Dec. 18
Union Metal Mfg., corn.(guar.)
50e. Jan. 1 Holders of rec. Dec. 19
Common (extra)
25e. Jan. 1 Holders of rec. Dec. 19
Preferred (guar.)
Jan. 1 *Holders of rec. Dec. 19
•2
Union Mortgage Co., corn. (guar.).- •2 Jan. 2 *Holders of rec. Dec. 18
Common (extra)
•2 Jan. 2 *Holders of rec. Dec. 18
Preferred (guar.)
•114 Jan. 2 *Holders of rec. Dee. 18
United Advertising(guar.)
•250. Jan. 1 *Holders of rec. Jan. 9
Extra
•25e. Jan. 1 *Holders of rec. Jan. 9
united Fuel Invest., 6% pref. (guar.).- '134 Jan. 2 *Holders of rec. Dee. 15
United Molasses. Ltd.
Amer. dep. rcts. for wet
•m3 Dec. 2 *Holders of rec. Dec. 10
United Porto Rican Bug., pref.(guar.)._ *87 He Jan. 1 *Holders of rec. Dec. 28
U.S. Casualty (guar.)
Jan. 2 "Holders of rec. Dec. 22
*51
United States Printing, corn -No action taken.
Preferred (guar.)
•75e. Jan. 1 *Holders of rec. Dec. 20
Extension
Verde
United
Mining (quar.).
50e. Jan, 31 Holders of rec. Jan. 2i
U.S. Finishine. corn, & pref.-Dividend sornitt ad
U.S.Printing & Lithogranh, pref.(qu.). •75e. Jan. 1 *Holders of rec. Dec. 20
Universal Pictures, let pref. (guar.)
•2
Jan. 2 *Holders of Teo. Dec. 23
valve Bag Co.. pref.(guar.)
•134 Jan. 1 *Holders of rec. Dec. 15
Viau Biscuit Corp.. 1st pref.(guar.)._
181 Jan, 2 Holders of lee. Dec. 22
Vichek Tool(guar.)
1234c. Dec. 31 Holders of rec. Dec. 19
victor Talking Mach., coin.((uar.)._ •S1
Feb. 2 *Holden of rec. Jan. 17
Waltham Watch, pr. pref. ((luar.)
"131 Jan. 2 *Holders of rec. Dec. 20
Washington Title Ins..com.& pfd.(qu.). •51.50 Jan. 2 *Holders of rec. Dec. 29
Weeden & Co.,corn.(guar.)
*60c Dec. 31 *Holders of rec. Dec. 20
Common (extra)
*60c Dec. 15 *Holders of rec. Dec. 10
Wellman Engineering, Prof.(guar.)
131 Dec. 31 Holders of rec. Dec. 19
Western Grain Co.. pref. (qua?.)
*131 Jan. 2 *Holders of rec. Dec. 15
Western Grocer of Iowa, preferred
334 Jan. 1 110111PCS of roe. Deo. 20
western Tablet & Stationery, corn.(qu.) 50c Feb. 1 Holders of rec. Jan. 20
Westinghouse Air Brake((luar.)
50c Jan. 31 Holders of rec. Dec. 24
weston (Geo.). Ltd., corn. (quar.)., •250 Jan. 1 *Holders of rec. Dee. 20
Whitaker Paper. corn.(guar.)
441 Jan. 1 *Holders of rec. Dec. 20
Preferred (guar.)
•131 Ian. 1 "Holders of rec. Dec. 20
wlehtta Union Stock Yards (gear.)...
•lti Jan. 1 *Holders of rec. Dec. 21
Willys-Overland Co., pref. (guar.)
•181 Jan. 2 *Holders of rec. Dee.
26
It 17ard, Inc., class A (guar.)
'1231e Jan. 1 *Holders of rec. Dec. 25
4006
Name of Company.
Miscellaneous (Concluded).
Woods Mfg., pref. (guar.)
Woodward & Lathrop, pref. (guar.).Worcester Salt Co.(guar.)
Young (J. S.) Co., corn.(guar.)
Preferred (guar.)
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
six Jan. 2 *Holders of rec. Dec. 24
'l 34 Dec. 19 *Holders of rec. Dec. 22
Jan. 2"Holders of rec Dec. 24
'234 Jan. 2 *Holders of rec. Dec. 19
•15„i Jan. 2 *Holders of rec. Dec. 19
Below we give the dividends announced in previous weeks
and not yet paid. This list does not include dividends announced this week, these being given in the preceding table.
Name Of company.
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
Railroads (Steam).
Dec. 30 Holders of refs. Dec. 1
82
Alabama Great Southern,ord
$1.50 Dec. 30 Holders of reo. Dec. I
Ordinary (extra)
Dec. 30 Holders of rec. Dee. 5
$6
Ordinary (special)
Feb. 13 Holders of reo. Jan. 9
$2
Preferred
$1.50 Feb. 13 Holders of roe. Jan. 9
Preferred (extra)
Dec. 30 Holders of rec. Dec. 1
$6
Preferred (special)
4% Jan. 1 Holders of rec. Dec. 15
Albany & Susquehanna
Jan. 3 Holders of rec. Dec. 15
2
Special
234 Feb. 2 Holders of roe. Dec. 31/
Atch Topeka & Santa Fe, pref
*214 Jan. 1 *Holders of reo. Dec. 12
Atlanta Birmingham & Coast. met
314 Jan. 10 Holders of rec. Dec. 120
Atlantic Coast Line RR.,corn
114 Jan. 10 Holders of rec. Dee. 12a
Common (extra)
•214 Jan. 5"Holders of rec. Dec. 15
Augusta & Savannah
Jan. 5 *Holders of rec. Dec. 15
•25c.
Extra
sIc Jan. 1 Holders of rec. Nov.296
Hanlon'& Aroostook, corn. (guar.)
154 Jan. 1 Holders of roe. Nov.no
Preferred (guar.)
50e. Jan. 2 Holders of ree. Dec. 15
Beech Creek (guar.)
of rec. Nov.29
2g Dec. 31 Holders of
Boston & Albany (guar.)
rec. Dec. len
Dec. 31 Holders
1
Boston & Maine. corn.(qua?.)
roe. Dec. 12
of
Holders
31
In Dec.
Prior preference (guar.)
114 Dec. 31 Holders of rec. Dec. 12
6% preferred (guar.)
114 Dec. 31 Holders of reo. Dec. 12
First preferred, class A (guar.)
Dec. 31 Holders of ree. Dec. 12
2
First preferred, class B (guar.)
1)4 Dec. 31 Holders of rec. Dec. 12
First preferred, class C(guar.)
214 Dec. 31 Holders of rec. Doe. 12
First preferred. class D (guar.)
114 Dec. 31 Holders of roe. Doe. 12
First preferred, class E (guar.)
214 Jan. 2 Holders of roe. Dec. 20
Boston & Providence (guar.)
Dec. 30 *Holders of rec. Dec. 15
•2
Buffalo& Susquehanst, pref
114 Feb. 2 Holders of rec. Dec. 266
Canada Southern
Dec. 31 Holders of roe. Dec. la
6234?
(qu.)
1)
new
(No.
corn.
Pacific
Canadian
75c. Jan. 1 Holders of rec. Dec. 84
Chesapeake Corporation (guar.)
6214c Jan. 1 Holders of refs, Dec. Sa
Chesapeake & Ohio, corn.(guar.)
334 Jan. 1 Holders of rec. Dec. 80
Preferred (guar.)
•5
Dec. 26 *Holders of rec. Dee. 15
Chicago Burlington & Quincy
•5
Dec. 26 *Holders of roe. Deo. 15
Extra
Jan. 7 Holders of ree. Dec. Oa
1
Chicago Great Western. pref
314 Jae. 10 Holders of rec. Dec. 26
Chic. Indianap.& Louisville, corn
Jan. 10 Holders of ree. Dec. 206
2
Preferred
25e. Dec. 31 Holders of reo. Dec. la
Chicago North Western common
la
Preferred (guar.)
134 Dec. 31 Holders of rec. Dec. 5a
134 Dec. 31 Holders of rec. Dec.
Chic. R. I. & Pacific, corn.(guar.)
314 Dec. 31 Holders of rec. Dec. 5,1
7% preferred
Dec. 31 Holders of rec. Dec. 54
3
0% Preferred
Dec. 26 *Holders of rec. Dec. 5
*4
Ctn. N.0.& Texas Pacific, corn
Dec. 26 *Holders of reo. Dec. 5
*50
Common (extra)
Dec. 31 Holders of rec. Dec. 151
3
Colorado & Southern. corn. (annual)._ _
Dec. 31 Holders of rec. Dec. 15s
2
First preferred
Dee. 31 Holders of rec. Dec. 151
4
Second preferred
2 Holders of rec. Dec. 10a
Jan.
114
(au.)
pf.
RR.'s
Cuba,
of
Corusolldated
$1.20 Dec. 29 Holders of rec. Dec. 29a
Cuba RR., common
Feb. 2 Holders of rec. Jan. 156
3
Preferred
Jan. 6"Holders of rec. Dec. 15
411
dDayton & Michigan. pref. (guar.)
2)4 Dee. 20 Holders of rec. Nov.260
Delaware & iludson Co. (guar.)
Jan. 1 *Holders of rec. Dec. 15
•81
Delaware RR
Jan. 5 *Holders of rec. Dec. 20
*2
Detroit Hillsdale & Southwestern
Jan. 15 *Holders of ree. Jan. 8
*4
Detroit River Tunnel
1 Holders of roe. Dec. 20
Jan.
$1.61
Elmira & Williamsport. Piet
Dec. 31 Holders of rec. Dec. 136
2
Erie PR., let & 2nd preferred
334 Jan. 2 Hold, of coup. No. 9
German Rys. Co.(interim)
Dec. 20'Holders of rec. Dee. 10
•2
Grand Rapids etc Indiana
1% Jan. 2 Holders of rec. Dec. 200
Gulf Mobile & Nor., pref.(guar.)
Jan. 2 Holders of rec. Dec. lla
2
lines
leased
Central,
Illinois
Dec. 26 *Holders of rec. Dec. 19
*5
Indiana Harbor Belt
Dec. 26 *Holders of rec. Dec. 19
'10
Extra
Jan. 2 *Holders of rec. Dee. 8
*1
Lackawanna RR. of N. J. (qUar.)
87340 Jan. 2 Holders of rec. Dee. 131
Lehigh Valley, coca.(guar.)
2 Holders of roe. Dec. 131
Jan.
$1.25
Preferred (guar.)
$1.13 Jan. 13 Dec 13 to Jan. 15
Little Schuykill Nay. RR.& Coal
$12.50 Feb. 2 Holders of rec. Jan. 15a
Mahoning Coal RR..corn.(guar.)
*$1.25 Jan. 2"Holders of rec. Dec. 23
Preferred
134 Jan. 2 Holders of roe. Dec. 15
Maine Central, common (guar.)
Dee. 31 Holders of rec. Dec. 56
Mo.-Kansas-Texas. common (quar.)--- $1
1% Dec. 31 Holders of rec. Des. 50
Preferred A (guar.)
1)4 Dec. 31 Holders of rec. Dec. 156
Missouri Pacific preferred (guar.)
Jan. 2 Holders of rec. Dec. la
2
Mobile & Birmingham. prof
*314 Dec. 30 *Holders of rec. Dec. 22
Mobile & Ohio
•5 Dec. 30 *Holders of rec. Dec. 22
Extra
$2.125 Jan. 2 Holders of rec. Dec. 60
Morris & Essex
Feb. 2 Dec. 27 to Jan. 28
2
N.Y. Central RR.(qua?.)
34 Jan. 2 Holders of rec. Nov. 165
N.Y. Chic.& St. Louis, corn and prf(qu)
$2.50 Jan. 2 Holders of rec. Dec. 15
New York & Harlem corn.& pre!
134 Jan. 2 Holders of rec. Dee. 156
N.Y. Lackawanna & West.(guar.)._
114 Jan. 2 Holders of reo. Dec. 51
N.Y.N. H.& Hartford. corn,(guar.)._
134 Jan. 2 Holders of rec. Dee. 50
Preferred (guar.)
134 Feb. 2 Holders of roe. Dec. 310
Northern Pacific (qua?.)
(guar.)
H.
N.
of
*114 Jan. 2 "Holders of rec. Dec. 8
Northern RR.
434 Jan. 10 Dec. 20 to Jan. 11
Northern Securities Co.(guar.)
•1% Jan. 2 *Holders of roe. Dec. 13
Old Colony (guar.)
114 Jan. 2 Holders of rec. Dec. 81
Pere Marquette, corn. (guar.)
Preferred and prior preferred (qua?.)
134 Feb. 2 Holders of rec. Jan. 20
Philadelphia Baltimore & Washington.. 0$1.50 Dec. 31 *Holders of reo. Dee. 15
•214 Jan. 10 *Holders of rec. Dec. 30
Philadelphia Trenton (guar.)
Pitts!). Ft. Wayne & Chic., corn.(guar.) 134 Jan. 2 Holders of rec. Dec. 106
1%* Jan. 6 Holders of rec. Dec. 106
Preferred (guar.)
Pittsburgh & Lake Erie
•32.50 Feb. 2 *Holders of rec. Dec. 28
Pittsb. McKeesport & Youghiogheny
$1.50 Jan. 2 Holders of rec. Dec. 154
Pittsburgh & Won Va.. corn.(guar.)._ 1/4 Jan. 31 Holders of rec. Jan. 15"
Reading Co.. 2d pref.(guar.)
500 Jan. 8 Holders of rec. Dec. 184
4
Jan, 2 Holders of rec. Dec. I56
Rensselaer &Saratoga
4.3
Jan. 1 *Holders of rec. Dee. 20
Rome & Clinton (guar.)
Jan. 2 Holders of rec. Dec. la
Bt. Louis-San Francisco common (qu.)... 2
(guar.)
preferred
114
Feb. 2 Holders of reo. Jan. 2a
6%
10
12
8% preferred (guar.)
134 May 1 Apr. 12
reo. July
6% preferred (guar.)
114 Aug. 1 Holders oftoM
Oct.
la
6% preferred (guar.)
114 Nov. 2 Holders of roe.
Southern Pacific Co.(guar.)
114 Jan. 2 Holders of reef. Nov.28a
2 Feb. 2 Holders of rec. Jan. 2a
Southern Ry.common (guar.)
la
Apr.
.65 May 1 Holders of rec.
Common(guar.)
$12
Common (guar.)
Aug. 1 Holders of rec. July la
26a
Dec.
rec.
of
Preferred (guar.)
134 Jan. 15 Holders
Southwestern RR.of Georgia
•214 Jan. 1 *Holders of tea. Dec. 1
sgm Jan. 1 "Holders of rec. Dec. 15
eiTenneesee Central. pre!
common
(guar.)
134 Dec. 81 Holders of rec. Dec. 150
Texas & Pacific
*3
Jan. 2"Holders of tee. Dec. 20
Tunnel RR.of St. Louis
234 Jan. 2 Holders of rec. Dec. la
Union Pacific common (guar.)
Jan. 10 *Holders of rec. Dee. 20
United N.J RR & Canal Co. (gut
Utica Clinton & Binghamton deb.stock. •214 Dec. 26
Y.)
•234 Jan. 1 *Holders of rec. Dec. 20
Valley RR.(N.
8
Dec. 31 Holders of rec. Dee. 134
Virginian Ry., common (annual)
$1.50 Jan. 2 Holders of rec. Deo. 15
WeetJersey &Seashore.common
Public Utilities.
Alabama Power.$7 pref.(guar.)
$8 preferred (guar.)
15 Preferred (guar.)
[Vol. 131.
FINANCIAL CHRONICLE
81.75 Jan. 2 Holders of rec. Dee. 15
$1.50 Jan. 2 Holders of rec. Dec. 15
$1.25 Feb. 2 Holders of reo. Jan. 15
Name of Company.
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
Public Utilities (Continued).
Am.Commonwealths Pow.,el. A&B(qu) (f) Jan. 2 Holders of rec. Dec. 31
Holders of rec. Dec. 15a
Jan.
$1
Amer. Community Power, corn
Holders of rec. Dec. 15a
$1.50 Jan.
86 first preferred (guar.)
Holders of rec. Dec. 15a
81.50 Jan.
$6 preference (guar.)
of rec. Dee, 15
*Holders
1
Jan.
Amer.Dist. Teleg. of N.J., corn.(qu.) - *11
"144 Jan. 1 *Holders of rec. Dec. 15
7% preferred (guar.)
Holders of rec. Dec. 150
Amer.& Foreign Power,$7 met.(qu.).. $1.75 Jan,
Holders of roe. Dec. 15a
$1.50 Jan.
$6 preferred (guar.)
$1.75 Dec. 3 Holders of rec. Dec. 156
Second preferred series A (guar.)
Holders of roe. Dee. 10
Jan.
250.
Amer. Gas & Elec., corn. (guar.)
Holders of rec. Doe. 10
Cora.(1-50th sits. corn. stock)
(.() Jan.
Holders of rec. Dee. 10
Corn. (extra 2-10ths sh. corn, stock).. (f) Jan.
Holders of roe. Jan. 10
$1.50 Feb.
Preferred (guar.)
Holders of rec. Dec. 156
Amer. Power & Light, $5 pref.(guar.)._ 87340 Jan.
Holders of rec. Dee. 156
$1.25 Jan.
85 preferred stamped (guar.)
Holders of rec. Dec. 156
$1.50 Jan.
86 preferred (guar.)
Holders of rec. Dec. 15
American Public Serv. Co., Prof.(qu.).. 1% Jan.
*Holders of rec. Dee. 20
Amer.States Pub.Serv., corn. A (qu.). •040c. Jan.
*Holders of rec. Dec. 20
*$1.50 Jan.
$6 Preferred (guar.)
Amer. Superpower Corp. corn.(annual). 40c. Dee. 3 Holders of rec. Dec. 1
Holders of roe. Dec. 15
$1.50 Jan.
1st preferred (guar.)
Holders of rec. Dec. 15
$1.50 Jan.
$6 preference (guar.)
Amer. Telephone & Telegraph (guar.)._ 214 Jan. 1 Holders of rec. Dec. 200
Holders of rec. Jan. 94
75c. Feb.
Amer. Water Works & El., com.(qu.)-Holders of reo. Doe. 1211
81.50 Jan.
$6 first preferred (quar.)
*Holders of roe. Dec. 5
*$1.75 66.
Appalachian El,Pow.,$7 pref.(qu.)
*Holders of rec. Dec. 5
•$1 50 Jan.
86 preferred (guar.)
Holders of rec. Dec. 15
Arizona Edison Co., $6.50 pref.(qua?.). $1.625 Jan.
Jan.
Holders of rec. Dec. 15
150.
pref.
Gas,
---(guar.)
Arkansas Natural
Holden( of roe. Dec. 15
Arkansas Power & Light,$7 pref.(qu.).. $1.75 Jan.
Holders of roe. Dee. 15
$1.60 Jan.
$6 preferred (guar.)
Holders of rec. Nov. 280
Associated Gas dc Elec., original pf.(Mt) 8710 Jan.
Jan.
Holders of rec. Nov.280
$4
$8 allotment certificates
of rec. Nov. 286
Holders
Jan.
$1.715
(qua?.)
preferred
$7
Holders of rec. Dec. 17
Jan.
Associated Tel. & Tel., class A (qua?.)... $1
Holders of roe. Dec. 17
$1.50 Jan.
$6 first preferred (guar.)
Holders of roe. Doe. 17
1% Jan.
7% first preferred (guar.)
Holders of rec. Dee. 17
81
Jan.
84 preference (guar.)
f2 Jan. 1 Holders of roe. Dec. 31
Assoc. Telep. UtII., corn.(guar.)
Holders of rec. Dec. 15
Jan.
$1.50
$6 cony. pref. ser. A (guar.)
*Holders of rec. Doe. 10
Bangor Hydro Electric, 7% pref.(guar.) '154 Jan.
eq.% Jan.
of roe. Dec. 10
*Holders
(guar.)
Preferred
6%
Jan. 1 Holders of rec. Dee. 23
2
Bell Telep. of Canada (guar.)
Bell Teiep.of Pa.,614% pref.(guar.).- 1)4 Jan. 1 Holders of roe. Doe. 20
Holders of rec. Dee. 13
Birmingham Elec. Co., $6 pref.(qu.)--- $1.50 Jan,
Holders of roe. Doe. 13
$1.75 Jan.
$7 preferred (guar.)
Holders of roe. Dee. 10
13,4 Jan.
Boston Elevated Hy.,corn.(guar.)
Holders of tee. Dos. 10
314 Jan.
Preferred
Jan.
Holders of roe. Dee. 10
$4
First preferred
*Holders of reo. Dee. 15
Brazilian Tr., Lt. & Pow.. pref. (guar.) •114 Jan.
50o. Jan. 1 Holders of roe. Dec. 31
British Columbia Power. class A (guar.)Brooklyn-Manhattan Transit. pref.(qu.) $1.50 Jan. 1 Holders of rec. Doe. 810
$1.50 Apr. 1 Holders of tee. Apr. la
Preferred,series A (guar.)
Holders of rec. Doe. 1
$1.25 Jan.
Brooklyn Union Gas(guar.)
Buff. Niagara & East Pw., corn.(guar.) *40o. Dec. 3 'Holders of rec. Nov.29
of rec. Nov.29
*Holders
3
Dec.
.400.
Class A (guar.)
'Holders of roe. Dee. 15
•40c.
Preferred (guar.)
*Holders of roe. Jan. 15
*11.25 Feb.
$5 first preferred (guar.)
Holders of ree. Dee, 15
134 Jan.
Calgary Power, Ltd. (guar.)
150. Jan, 2 Holders of reo. Dee. 81
Canada Northern Pow. Corp.,com.(gu.)
Holders of roe. Dec. 31
1
Jan.
134
7% preferred (guar.)
Canadian Western Natural Gas, Light,
*25o. Mar. *Holders of rec. Feb. 14
Heat & Power, preferred (extra)
"Holders of rec. May 15
*25e. Juno
Preferred (extra)
Holders of rec. Dec. 13
Carolina Power dr Light,$7 pt.(qu.)....- $1.75 Jan.
Holders of rec. Dec. 13
$1.50 Jan.
$6 preferred (guar.)
Holders of rec. Dec. 15
134 Jan.
Central Ill. Light Co.,6% pref.(qu.)_._
Holders of rec. Dec. 15
134 Jan.
7% Preferred (guar.)
of rec. Dec. 31
*Holders
Jan.
1
*$1.50
(Qua?.).
Central Ills. Pub. Serv . pref.
*Holders of rec. Dee. 10
Central Maine Power,7% pref.(qua?.). "5' Jan.
*Holders of rec. Dec. 10
'114 Jan.
6% preferied (quar.)
*Holders of rec. Dec. 10
•81.50 Jan.
VS preferred (guar.)
Holders of rec. Dec. 12
Jan.
Cent.Pub.Serv. Corp.,$4 pref.(qu.)--- $1
Holders of roe. Dec. 12
$1.50 Jan.
$6 preferred (guar.)
Holders of roe. Dee. 12
$1.75 Jan.
$7 preferred (guar.)
Holders of roe. Doe. 5
10e. Jan.
Cent. States Elec. Corp.,common (qu.)_
Holders of rec. Doe. 5
Jan.
f234
stook)
Common (payable in cam,
Holders of rec. Doe. 5
1% Jan.
7% Preferred (guar.)
of roe. Doe. 5
Holders
Jan.
134
preferred
(guar.)
6%
Holders of rec. Dec. 5
Cony. pref. opt. series 1928 (guar.) _m $1.50 Jan,
Holders of rec. 13eo. 5
Cony. pref. opt.series 1929 (guar.) -m $1.50 Jan,
*Holders of rec. Dec. 5
Central States Power & Light, pf.(au.)- 91.75 Jan.
Holders of rec. Deo. 5
$1.75 Jan,
87 preferred (guar.)
Holders of reo. Dec. 5
$1.75 Jan.
Central States Utilities Corp.,$7 pr.(qu) •1m
of rec. Doe. 15
*Holders
Jan.
Chic. North Shore & Mllw. pr.lien (au.)
*Holders of rec. Dee. 16
Chicago Rapid Transit. pref. A (mthly.) •65c. Jan.
*Holders of rec. Dee. la
.600. Jan.
Prior preferred B (monthly)
*Holders of rec. Dee. 15
Cincinnati Gas & Elec., pref. A (qua?.)- '131 Jan.
•$1.50 Jan. 1 *Holders of rec. Dec. 31
Cm. Newport & Coy. L.8eTrocom.
*Holders of rec. Dec. 31
1
Jan.
81.125
Preferred (guar.)
De^. 20 to Jan. 1
81.12 Jan,
Cincinnati & Sub. Bell Tel.(guar.)
Cities. Serv Pr. & Lt. $l pref(mthly)..... 58 1-3c Jan. 1 Holders of rec. Dee. 81
of rec. Dee. 31
Holders
Jan.
50o.
1
$6 preferred (monthly)
412-Sc Jan. 1 Holders of rec. Dec. 31
$5 Preferred (monthly)
Citizens Water of Washington. Pa.
Holders of rec. Dee. 20
144 Jan.
7% preferred (guar.)
Holders of roe. Doe. 26
134 Jan.
Cleveland Ry.,corn.(guar)
Jan.
Holders of rec. Deo. Ra
50
$1
•OleJ
Corp..
pref
Sou.
&
Commonwealth
Commonwealth Utilities, elan A (qua?.) '37340 Dec. 3 "Holders of rec. Dec. 20
*50e. Doe. 3 *Holders of rec. Dee. 20
Class A (extra)
'8734c Dee. 3 *Holders of rec. Dee. 20
Class B (guar.)
•500. Dec. 30 *Holders of roe. Dec. 20
Class II (extra)
•$1.75 Jan, 2 *Holders of roe. Dec. 20
Preferred A (guar.)
Jan. 2 *Holders of rec. Doe. 20
31.50
'
1
'
Preferred IS (guar.)
Community Telep. Co.. partic. stk.(qu.) *500. Jan. 2 *Holders of rec. Doe. 19
Electricidad
Americana
Hispano
Comp.
Doe. 27 *Holders of roe. Doe. 19
Amer. abs. for E shs.(7 gold pesetas)•750. Jan. 1 *Holders of roe. Dec. 16
Connecticut Electric Servo (guar.)
2 *Holders of roe. Dee. 15
Jan.
•90o.
com.(qu.)
Balt.,
Consol. Gas El. L.& P..
'134 Jan. 2 *Holders of reo. Dee. 15
5% preferred, series A (guar.)
'13,4 Jan. 2 *Holders of rec. Dec. 15
8% preferred, series D (guar.)
'134 Jan. 2 *Holders of reo. Doe. 15
514% preferred, series E (guar.)
Consolidated Gas of N. Y., pref.(qu.).. $1.25 Feb. 2 Holders of rec. Dec. 27a
*234 Jan. 1 *Holders of roe. Dec. 15
Consumers Gas(Toronto)(guar.)
Consumers Power (.o., $5 Pref.(guar.).- $1.25 Jan. 2 Holders of MO. Dee. 16
134 Jan. 2 Holders of tee. Dee. 15
6% preferred (qua?.)
$1.65 Jan. 2 Holders of rec. Dee. 15
8.6% preferred (guar.)
g Jan. 2 Holders of roe. Dee. 15
7% preferred (guar.)
50o. Jan. 2 Holders of roe. Dee. 15
6% preferred (monthly)
Jan. 2 Holders of rec. Bee. 15
55o.
6.6% preferred (monthly)
$1.25 Apr. 1 Holders of reo. Mar. 14
$5 preferred (qua?,)
134 Apr. I Holders of rec. Mgr. 14
6% preferred (guar.).
1.65 Apr. 1 Holden of rec. Mar. 14
6.6% preferred (guar.)
194 Apr. 1 Holders of rec. Mar. 14
7% preferred (guar.)
50e. Feb. 2 Holders of roe. Jan. 15
(monthly)
6% preferred
500. Mar. 2 Holders of rec. Feb. 14
6% preferred (monthly)
50c. Apr 1 Holders of rec. Mar. 14
II% preferred (monthly)
55c. Feb. 2 Holder; of rec. Jan. 15
6.6% preferred (monthly)
550. Mar. 2 Holders of roe. Feb. 14
6.6% preferred (monthly)
850. Apr. I Holders of rec. Mar. 14
preferred
6.6%
(monthly)
Continental Gas & Elea., corn.(guar.)._ $1.10 Jan. 2 Holders of roe. Dee. 120
7% prior preference (guar.)
1,4 Jan. 2 Holders of roe. Deo.;12a
$2.50 Dee. 30 Holders of rec. Nov.29
Continental Pass Ry., PhIla
Continental TeleP., 7% Pref. (qua?.)... *134 Jan. 2 *Holders of rec. Dee. 15
2 *Holders of rec. Dec. 15
(guar.)
Jan
preferred
634%
Dee. 31 Holders of rec. Dec. 156
Cuban Telephone Co.. corn.(guar.)._ 2
13,4 Dec. 31 Holders of rec. Dec. 156
Preferred (guar.)
Dayton Power & Light Prof.(monthly)_ _ *50o. Jan. 1 *Holders of rec. Dec. 20
Denver Tramway Corp., Prof.(qua?,).. 3734o Jan. 1 Holders of rec. Dec. 154
Jan. 15 Holders of roe. Doe. 20a
2
Detroit Edison Co.(guar.)
Diamond State Telep., 614% pf.(qu.)._ •134 Jan. 16 "Holders of tee. Doe. 20
DEC. 20 1930.1
Name of Company.
FINANCIAL CHRONICLE
Per
When
Cent. Payable.
Books Cloaea
Days imitates.
Public Utilities (Cont(nued).
Duke Power, common (guar.)
15( Jan. 2 Holders of rec. Dec. 15
Preferred (guar.)
134 Jan. 2 Holders of rec. Dec. 15
Duquesne Light,6% first pref.(quar.)
133 Jan. 15 Holders of rec. Deo. 31a
East. Gas dr Fuel Associates, pr. pt.(an.) 134 Jan. 1 Holders of rec. Dec. 16
6% preferred (guar.)
134 Jan. 1 Holders of rec. Dec. 15
Eastern Texas Elec. Co., pref. (guar.)-- •13/ Jan. 1
Electric Bond & Share Co., corn.(guar.) .1•134 Jan. 15 Holders of rec. Dec. 5
$6 preferred (guar.)
$1.50 Feb. 2 Holders of rec. Jan. 8
$1.25 Feb. 2 Holders of rec. Jan. 8
$5 Preferred (guar.)
Electric Power & LightAllotment ctfs.(full paid) (quar.)
134 Jan. 2 Holders of rec. Dec. 8a
Allot. Ws.70% paid(guar.)
1.2233 Jan. 2 Holders of rec. Deo. 8a
$1.50 Jan. 2 Holders of rec. Dee. 8a
$6 preferred (guar.)
$7 preferred (guar.)
$1.75 Jan. 2 Holders of rec. Dec. 8a
El Paso Elec. Co., pref. A (guar.)
*$1.75 Jan. 15 *Holders of rec. Jan. 2
Preferred B (guar.)
"$1.50 Jan. 15 *Holders of rec. Jan. 2
Empire Gas & Fuel Co.,8%,pf.(mthly)_ 862-3e Jan. 1 Holders of rec. Dec. 15a
7% preferred (monthly)
581-3c Jan. 1 Holders of rec. Dec. 156
634% preferred (monthly)
541-6c Jan. 1 Holders of reo. Deo. 156
6% preferred (monthly)
50o. Jan. 1 Holders of ree. Dec. 154
Empire Power, partio. stock
560. Jan. 1 Holders of reo. Dee. 16
Engineers Public Service, corn.(quar.)60c. Jan. 2 Holders of rec. Dec. 170
35 convertible pref. (guar.)
$1.25 Jan. 2 Holders of rec. Dec. 170
$5.60 preferred (guar.)
31.375 Jan. 2 Holders of ree. Dec. 17s
$8 preferred (guar.)
$1.50 Jan. 2 Holders of rec. Dec. 17
Fall River Electric Light (guar.)
50e. Jan. 2 Holders of rec. Dee. 15
leral Light & Trac.. corn.(quar.)
373th Jan. 2 Holders of rec. Dec. I3a
Common(pay.in corn.stock)
11
Jan. 2 Holders of reo. Deo. I3a
Federal Public Service, pref.(quar.)
'1% Jan. 15 *Holders of rec. Dec. 31
Federal Water Service $6 Pref. (etiar.)
$1.50 Jan. 1 Holders of rec. Dec. 15
86.50 preferred (guar.)
21.625 Jan. 1 Holders of roe. Dec. 15
$7 preferred (guar.)
$1.75 Jan. 1 Holders of rec. Dec. 15
Florida Power & Light, pref.(quar.)
$1.75 Jan. 2 Holders of rec. Dec. 13
Foreign Light & Power 86 pref. (qUar.) $1.50 Jan. 1 Holders of rec. Dec. 20
Frankford & Southwark Mina.P288.(q1.) 4.50 Jan. 2 Dec. 2 to Jan. 1
Gaa & Elec. Securities, corn.(monthly)._
50c. Jan. 1 Holders of reo. Deo. 15
Common (pay. In corn. stk.) (mthly.) 134 Jan. 1 Holders of rec. Dec. 15
Preferred (monthly)
58 14c Jan. 1 Holders of rec. Dec. 15
Gas Securities Co..corn.(monthly)
f14 Jan. 1 Holders of rec. Dec. 15
Preferred (monthly)
SOc. Jan. 1 Holders of rec. Dee. 15
General Gas & Elec.. corn. A & B (qu.)_ r7330 Jan. 2 Holders of reo. Nov.281
$8 preferred (guar.)
$2
Jan. 2 Holders of rec. Nov.280
$7 preferred (guar.)
$1.75 Jan. 2 Holders of rec. Nov. 280
General Pub Utilities. $7 pref.(guar.)
.
- $1.75 Jan. 2 Holders of rec. Dec. 156
General Wat. Wks.& Elec., corn. A(qu.) t50c. Jan. 2 Holders of rec. Dec. 15
$7 preferred (guar.)
$1.75 Jan. 2 Holders of rec. Dec. 15
$6.50 preferred (guar.)
31.625 Jan. 2 Holders of rec. Dec. 15
Georgia Power Co., $8 pref. (guar.).
- $1.50 Jan. 1 Holders of rec. Deo. 15
$5 preferred (guar.)
$1.25 Jan. 1 Holders of rec. Dec. 15
Germantown Pass. Ry.(Phil.)(<M3-31 1.3134 Jan. 6 *Holders of rec. Dec. 18
Greenwich Water & Gas System, pr.(on) 133 Jan. 2 Holders of rec. Dee. 20
Hackensack Water, pref. A (quar.)
4334 a Deo. 31 Holders of reo. Deo. tha
Havana her.& Utilities, 1st pref.(qu.)_
133 Feb. 16 Holders of rec. Jan. 17
Cumulative preference (guar.)
$1.25 Feb. 16 Holders of rec. Jan. 17
Hawaiian Cons. rig Ltd.. pref. A (tiu.) .15e. Dec. 31
Hawaiian Electric (monthly)
•150. Dee. 20 *Holders of rec. Dec. 15
Illinois Bell Telephone (guar.)
*2
Deo. 31 *Holders of rec. Dec. 30
Illinois Power Co.,6% pref.(guar.)
- 134 Jan, 2 Holders of rec. Deo. 15
7% preferred (guar.)
134 Jan. 2 Holders of rec. Dec. 15
Illinois Power & Light,6% pref.(guar.) 133 Jan, 2 Holders of rec. Deo. 10
Minot; Water Service. Pref. (quar.)
$1.50 Dec. 31 Holders of rec. Nov.20
Indiana dr Mich. Elec. 7% pref.(qu.)
*31.75
@FedFRASER