The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
The 11111ineraat Volume 137 Fi nanrtt New York, Saturday, December 23 1933. Number 3574 The Financial Situation HE current week has been pregnant with a number of important events at Washington, and it is difficult to say to which foremost importance should be assigned. On Tuesday President Roosevelt promulgated an order investing the National Labor Board with supreme and extraordinary powers in dealing with labor disputes. On Wednesday the text of the certificate of incorporation of the Federal Surplus Relief Corporation, as filed in Delaware, was made public, showing that an agency had been called into being with broader powers than those vested in any other emergency arm of the Government, although its main functions are supposed to consist of acquiring surplus agricultural products for distribution to the destitute and to take over the authority and functions now exercised by the Public Works Administration, the Agricultural Adjustment Administration, and the Federal Emergency Relief Administration. On Thursday night there came the President's silver proclamation, providing for the absorption by the Federal Government of virtually the entire annual silver production of the United States and its coinage into silver dollars at the rate of 50% of the silver thus taken over by the Government. This latter action came as a complete surprise, no one having had any previous intimation that anything of the kind was contemplated. This event has attracted attention beyond everything else and marks rt new step in the development of the President's monetary policy. As such it has been attended with spectacular results on both the Stock Exchange and in the commodity markets, where it has been hailed as another inflationary move, though perhaps one less objectionable than the putting out of irredeemable paper money in the shape of greenbacks. This silver program therefore merits close consideration and study, such as it is now receiving, and will probably continue to receive for some time to come, the more so as considerable difference of opinion has already appeared as to how the scheme is likely to work and what its probable effects are going to be from the standpoint not alone of this country but of the eritire world. The Presidential proclamation itself sets out quite at length what it is intended to accomplish. Speaking in a general way, the United States Mints are directed to accept all silver hereafter mined in this 1 2c. an ounce, or country or its possessions at 64/ 211/ 2c. above the market level at the time of the proclamation. The President invokes the provisions of the Thomas inflation amendment to the Agricultural Act, but he goes further than this and puts T into effect the Pittman international silver agreement reached at the World Economic Conference in London. As it happened, shortly before the President's proclamation, or perhaps with design, Jesse H. Jones, Chairman of the Reconstruction Finance Corporation, announced that another $25,000,000 increase had been made in the fund set aside for the gold buying program of the Administration, raising the fund to $100,000,000. The original allocation, made on Oct. 26, was $50,000,000; another $25,000,000 was set aside for the, same purpose two' weeks ago, and this has been followed by the authorization of still another $25,000,000 on Tuesday of the present week. It was also indicated that over $60,000,000 of the fund had been used, $16,976,000 to acquire 507,485 ounces of newly-mined domestic gold and about $45,000,000 for foreign purchases. It is well to bear this in mind, as thereby it is made plain the silver coinage scheme now put into effect is part of a general plan of inflation, and which the President has now made a definite part of the scheme. The proclamation begins with a quotation from the Thomas inflation section and points out that by this the President is authorized "by proclamation to fix the weight of the gold dollar in grains nine-tenths fine and also to fix the weight of the silver dollar in grains nine-tenths fine at a definite fixed ratio in relation to the gold dollar at such amounts as he finds necessary from his investigation to stabilize domestic prices or to protect the foreign commerce against the adverse effect of depreciated foreign currencies, and to provide for the unlimited coinage of such gold and silver at the ratio so fixed." As a matter of fact, however, the proclamation makes no change in the existing ratio. What the President does do is to refer to the agreement reached at the World Economic and Monetary Conference in London, July 20 1933, by the representatives of 66 governments, "which in substance provided that said governments will abandon the policy and practice of melting up or debasing silver coins; that low valued silver currency be replaced with silver coins, and that no legislation should be enacted that will depreciate the value of silver." The purpose of the agreement was that the producing countries would absorb 35,000,000 ounces per annum of silver from their mines during the four years commencing the first day of January 1934, and that of the 35,000,000 ounces the United States would absorb annually at least 24.421,410 ounces of the silver produced in the United States during such period of time. 4396 Financial Chronicle The purpose of the proclamation is that the United States shall fulfill its part of the agreement. Accordingly, the President directs that "each United States coinage mint shall receive for coinage into standard silver dollars any silver which such mint, subject to regulations prescribed hereunder by the Secretary of the Treasury, is satisfied has been mined subsequent to the date of this proclamation from natural deposits in the United States or any place subject to the jurisdiction thereof." Then what happens? The proclamation says: "The director of the Mint, with the voluntary consent of the owner, shall deduct and retain of such silver so received 50% as seigniorage and for services performed by the Government of the United States relative to the coinage and delivery of silver dollars. The balance of such silver so received, that is 50% thereof, shall be coined into standard silver dollars, and the same, or an equal number of other standard silver dollars, shall be delivered to the owner or depositor of such silver." It is furthermore provided that "the 50% of such silver so deducted shall be retained as bullion by the Treasury and shall not be disposed of prior to the 31st day of December 1937, except for coining into United States coins." The foregoing is the sum and substance of what the proclamation sets forth. The producer turns over to the Mint his newly-mined silver, yields up 50% of it to the Government, and gets back silver dollars for the remaining 50%. The President points out that the silver production of the United States for 1932 was just 24,000,000 ounces, on which basis the whole of the annual production of silver of this country would find its way into the Mint. The result works out, as already stated, 641/ 2c. an ounce, or 21Y2c. above the current market level. Just what the ultimate result will be no one seems ready to give an affirmative answer. The proclamation expressly says that the present ratio in weight and fineness of the silver dollar to the gold dollar shall be maintained until changed by further order or proclamation. The outcome of the scheme will be awaited with grave interest not unmixed with anxiety. In the stock market and the commodity markets the action met with immediate response, as already reported, a sharp speculative rise in prices occurring, but in the silver market itself the effect was less pronounced than might have been supposed. This is evident from the fact that the range for the December option of silver on the commodity exchange was from 44.30 to 44.60, with the close for the day at the nominal figure of 44.13c., which compares with the close the previous day of 43.10@43.15. The proclamation is a step in the wrong direction. Twenty-four million ounces of silver is not a formidable amount. The danger is that if the price of the metal should really rise in very substantial fashion, production of silver would enormously increase, and the United States, along with the rest of the world, would be deluged with a flood of silver. Silver is largely a by-product of other metals, and with the price raised in any considerable measure the output is likely to increase in no uncertain way. From a statement given out by that eminent partisan of silver, Senator Key Pittman, it appears that whereas the silver production of the world in 1932 was only 166,454,000 ounces, as recently as 1929 the production was 260,970,029 ounces; in 1928 it was 257,925,154 ounces, and for a long series of years Dec. 23 1933 it was well in the neighborhood of a quarter of a billion ounces a year. RESIDENT -4-- ROOSEVELT on Tuesday of this week, as noted further above, signed an executive order broadening the power of the National Labor Board and conferring upon it most extraordinary powers in the settlement of labor disputes. It behooves every thoughtful citizen to ponder long and earnestly whither the country is drifting in the delegation to Government agencies of control over the industrial activities of the country by such means. By the Executive order of this week, which in its sweep is all-embracing,the President conferred upon the National Labor Board authority to "compose all conflicts threatening the industrial peace of the nation." There would, of course, be no objection to this, and, indeed, the action would have to be considered as commendable if the functions of this Labor Board were confined to ordinary and legitimate functions and if we could have assurance that the determination of questions coming before the Board would be disposed of in strict accordance with the merits of the case, and the authority of the Board did not exceed proper bounds. The Board, by the Executive order of this week, and which the President points out was created to "pass promptly on any case of hardship or dispute that may arise from interpretation or application of the President's re-employment agreement"—"shall continue to adjust all industrial disputes, whether arising out of the interpretation and operation of the President's re-employment agreement or any duly approved industrial code of fair competition and to compose all conflicts threatening the industrial peace of the country." The order is pretty comprehensive, and in order that there may be no question that the President is in full accord with what the Labor Board has thus far done, blanket approval is given to "all action heretofore taken by this Board in the discharge of its functions," and all its acts ratified. The powers and functions of the Board are made virtually all-inclusive, being defined as follows: "To settle by mediation, conciliation or arbitration all controversies between employers and employees which tend to impede the purposes of the National Industrial Recovery Act, provided, however, the Board may decline to take cognizance of controversies between employers and employees in any field of trade or industry where a means of settlement provided for by agreement, industrial code, or Federal law has not been invoked." But that is not all. The Executive order also gives the Board definite authority to create regional Boards, and to delegate to them its own powers. This part of the order reads: "(b) To establish local or regional Boards, upon which employers and employees shall be equally represented, and to delegate thereto such powers and territorial jurisdiction as the National Labor Board may determine." Of course the Board is also authorized "(c) to review the determination of the local or regional Boards where the public interest so requires," and "(d) To make rules and regulations governing its own procedure and the discharge of its functions." In a word, the National Labor Board is made supreme, and final authority in all labor disputes of which it may assume jurisdiction. Newspaper accounts tell us that the immediate reason for the P Volume 137 Financial Chronicle President's move was to lay foundations for disposal of the Weirton and Budd cases, in both of which the power of the National Board to enforce Section 7A of the National Industrial Recovery Act had. been challenged. The Weirton Steel Co. of Pittsburgh questioned the Board's order for a Government supervised election by union officials at its plants and proceeded with a company union election. The Budd Auto Body Manufacturing Co. of Pittsburgh had served notice that it, too, would refuse to permit a supervised election. Labor Board officials, it is stated, see in the two cases an organized movement among manufacturers for preservation of the company union. They regard this as a violation of Section 7A, which guarantees labor the right to deal collectively with employers through representatives of their own choosing. Thus we see what is the main point of controversy, in these particular cases at least, namely, that the manufacturers would have representatives chosen from among the members of their own company unions, while labor bodies are trying to force upon the manufacturers, representatives chosen from among outside labor organizations engaged as professional agitators of labor who do not consider any case upon its merits, but from a general standpoint predicated entirely upon what these unions think labor ought to have from an abstract point of view, and who regard the present as a splendid occasion for formulating special and excessive demands. Their only stock in trade is to act as labor agitators and put forth all the time new and still larger demands. Their object, of course, is to gain favor with labor and perpetuate themselves in their own jobs. In this week's Executive order, as quoted above, in conferring upon the National Labor Board the power to establish local or regional Boards, it is distinctly provided that "employers and employees shall be equally represented," and that is the theory upon which all governing boards are nominally constituted—that is, that the opposing sides shall have individual and equal representation in order that they may have fair and impartial treatment. But let no one be deceived by this suggestion of fair and judicial treatment. The representatives chosen are almost invariably heads of large labor organizations who can be depended upon to present an unyielding front in advocating the demands of socalled labor, while even the representatives of the manufacturers are usually chosen from among those who are known from their expression of views to have a strong leaning towards labor. The origin of the National Labor Board dates back to last August, when President Roosevelt issued a joint appeal for industrial peace pending the complete functioning of the National Recovery program and appealed directly to the public to end all strife and lockouts during the intervening period. At the same time the President appointed a Board of seven men "to pass promptly on any case of hardship or dispute that may arise from interpretation or application" of the blanket re-employment agreements. This Board was headed by Senator Robert F. Wagner of New York, with the other members consisting of William Green, President of the American Federation of Labor; John L. Lewis, President of the United Mine Workers of America; Dr. Leo Wolman, Professor of Economics of Columbia University, along with Walter C. Teagle,President of the Standard Oil Co. of N. J.; Gerard Swope,President of the 4397 General Electric Co., and Louis E. Kirstein, General Manager of William Filene's Sons Co. of Boston. Here we have a body nominally representing employer and employee alike, but where is William Green and John L. Lewis likely to stand in any cases of controversy between employee and employer? On Oct. 6 President Roosevelt enlarged the National Labor Board from seven to eleven members at the request of Senator Wagner, Chairman of the Board, who said the press of work made this action necessary, and furthermore that the larger membership would enable the Board to function continuously. The same fiction of equal representation for labor on the one hand and employer and industry on the other hand was kept up. The new members named by the President were Austin Finch of North Carolina and Edward N. Hurley of Chicago, representing employers and industry, and George L. Berry and Rev. Francis J. Haas, Professor of Economics at Catholic University in Washington, representing labor. How the gradual extension of power of the National Labor Board strikes the ordinary manufacturer and producer is well illustrated in an analysis of the situation made by the National Association of Manufacturers and released for publication the present week. The analysis bears the title, "The National Labor Board's Three-Month Career." The Association, in recording its findings, characterizes the Labor Board under the new powers conferred by the President's Executive order as the new Supreme Court of Labor, which, of course, it is, and becomes as a result of the delegation of the new powers to the Board. The Association in this analysis well observes that three months of rulings by the National Labor Board have furnished sufficient data to indicate its policies and general methods of action in the settlement of labor disputes. On the basis of these rulings the Association of Manufacturers has marshaled the important decisions of the Labor Board under group headings so as to formulate, in some degree, "its lines of thinking and the directions in which it is moving." It is recognized that much of the influence of the Board is exerted informally, and that its published material by no means covers its work. Nevertheless what has been published constitutes a valuable and already quite formidable precedent "for the newly-established Supreme Court of Labor." The Association recites the circumstances under which the Labor Board had its origin and came into being. It was not provided for in the National Industrial Recovery Act, although Senator Wagner, present head of the Board, was one of the leading framers of the Recovery Act. The Board was created by the President upon recommendation of the Industrial Advisory Board and the Labor Advisory Board. At first it was planned that the power of the Board would be restricted to a purely consultative capacity, and that its decision would be binding only if the parties in dispute agreed in advance to be bound by them. It was to act only as an official and always available court of arbitration, but the Board, says this analysis, quickly outgrew its limitation, too. "As a national emergency was declared to exist as pressing as any during war-time, the dicta of the Board were held as final as any of President Wilson's decisions on labor troubles during 1917 and 1918. The wording of the Board's decisions immediately reflected this growth of au- 4398 Financial Chronicle thority, and assumed the tone of Supreme Court decisions. On Sept. 28 Senator Wagner was saying that the Board 'cannot issue summonses, and it will not swing a club. It relies upon voluntary action.' But a month later, on Oct. 31, the Senator declared that 'to make its policies effective, the National Labor Board is backed by all the powers and penalties of the National Recovery Act. They will be used when necessary." The Senator's change of view followed the deed, we are told, and the underlying purpose is well stated in the following words: "It has ordered the reinstatement of strikers in preference to strikebreakers, and has included strikers in the election of worker representatives to deal with employers. It has been active in promoting and supervising the election of worker representatives." Not only that, but "in some instances the Board's procedure has ridden roughshod over private contracts. In the New York boot and shoe dispute the Board held that'those of the alleged union contracts made since the inception of the strike, which have not resulted in the return of a majority of the workers in any of the shops affected by the strike are invalid,' although the contracts were made with an American Federation of Labor Union." The Board has gone further and taken the definite stand that "representatives of the workers need not necessarily be representatives chosen from the ranks of the workers, leaving the opportunity for professional organizers to deal with employers. In all this the producer and manufacturer can easily perceive what he is up against now that the powers of the National Labor Board have been further enlarged and extended, and it has been erected into what is properly termed a Supreme Court of Labor. He will also see that the greatest menace the decisions bear is that they are all one-sided, and that the underlying purpose always is to carry out the demands of labor, and especially of organized labor. As constituted and endowed, the Labor Board cannot be depended upon to act in the capacity of a judicial tribunal, even though now it has been invested with all the attributes of such a tribunal. What it all means is the complete domination of labor to its own advantage and in accordance with its own desires and purposes. This must eventuate in complete subjection of the country's industries to the arbitrary and tyrannical rule of labor without regard to the interests and rights of anyone else. A labor oligarchy will be in complete control. Let the manufacturer and producer closely watch the course of events if they would escape the ultimate consequences of a complete loss of private initiative in the direction of their own business, and leave Government bureaus the supreme master— until the day of final reckoning. IF the National Labor Board, now erected into a Supreme Court of Labor, were not endowed with sufficient capacity for mischief in the economic world, labor in the transportation field is now engaged in formulating a scheme which would permit railway labor to exercise the same sort of advantage for itself in the railroad field. There is this difference, however: railway labor would go a step farther and at the same time eliminate bankers from the future financing of the railroads. The New York "Times" on Thursday morning published a Chicago dispatch saying that labor would ask Congress to Dec. 23 1933 create a Federal Railroad 'Credit Corporation and thereby "remove the banker" from the field of railroad financing, so that $2,000,000,000 of refinancing may be completed "without profit" in the next two years. That certainly looks enticing, but labor by no means is acting entirely from disinterested motives in submitting a proposition of that kind. Its primary purpose is to gain certain definite advantages for itself such as a shorter work day and a shorter week and increased pay for the reduced service. We are told in the Chicago dispatch from which we are quoting that the proposal was made public for the first time on Wednesday night by George M. Harrison, Grand President of the Brotherhood of Railway and Steamship Clerks, and Vice-Chairman of the Association of Railway Labor Executives. The plan, matured as a result of two years of study, was approved by the chiefs, it is stated, of the 21 railway labor unions, representing 1,000,000 employees, at the opening dinner session that night of a three-day meeting. The speakers were the Secretary of Labor, Miss Perkins, who the dispatch states received an ovation; Alexander F. Whitney, Chairman of the Railway Labor Executives' Association, and Mr. Harrison, the author of the plan. David B. Robertson, President of the Brotherhood of Firemen and Enginemen, was toastmaster. The coming sessions, the dispatch informs us, are regarded as among the most momentous in railroad labor history, for the 1,000 delegates contemplate formulating a 'comprehensive legislative program to be submitted to Congress. On the agenda for discussion are railway consolidation, the six-hour day, amendments to the Railway Labor Act, pensions, payroll reserves, the problem of competing carriers, and railroad workmen's compensation. Thus in the last analysis railroad labor, far from being moved alone by considerations of railroad financing, is seeking merely to entrench itself where it could dictate compensation, hours of labor, wages and various other things for its own advancement and regardless of the effect on the railroad transportation world, and regardless also of the public welfare if the latter conflicts with railroad labor demands. The keynote of Mr. Harrison's address, the author of the plan, was the statement, the dispatch says, that unless the present tendency of machines to displace workers is counteracted by shorter hours and higher wage rates, "the day will soon come when the great majority of the American people will be able to exist only by the grace of charity and the doles of the Government." To this the reply might be made that if labor rises to complete domination and is allowed to continue unmolested, and the profits of business are entirely eliminated, as is so vigorously insisted upon in certain quarters, the day will inevitably come when business as a private enterprise will be completely eliminated and we will all be completely the dependents of the United States Government. And who, in that event, is to pay the taxes to run the Government when business is deprived of all profit? That will be a problem such as never taxed the ingenuity of the most capable Government official. Obviously the laborers themselves will have to pay the taxes out of their own swollen and inordinate income (wages) fixed by themselves. Although the addresses of Mr. Whitney and Mr. Harrison dealt with the proposed legislative pro- Volume 137 Financial Chronicle gram, the outstanding feature of the meeting was the announcement of the plan for a Federal Railroad Credit Corporation, formulated by Mr. Harrison,"who is regarded as one of the outstanding statistical authorities among railroad labor leaders." Railroad financing, if Congress should enact the measure, would be a public service, not an enterprise of private profit. Of course it is argued that the capital obligations of the carriers must be scaled down, particularly charges on funded debt. This follows inescapably from the fact that if labor in railroad transportation insists on larger compensation for itself this must be at the expense of some other interests in the transportation field. There is no concealment of the object in view, and in most unqualified form it is declared that "we suggest that the Government take over the job of financing the railroads. Bond issues could be refinanced through this corporation at a substantial reduction in interest rates. This corporation could raise the funds necessary for the financing of the railroads through the sale of its securities to the public. Such a governmental agency could finance the railroads at a saving of perhaps one-half of the present interest rates." This is the familiar argument. In ordinary circumstances the Government could certainly borrow at a lower interest charge than a private corporation. But at the rate at which the Government at Washington is proceeding in incurring debt, how long could such an advantage be counted upon? The Administration at Washington is engaged in creating new obligations week after week, literally by the billions, and if on top of all this railroad financing is to be undertaken by the Government at the rate of one billion to two billion dollars a year, what will become of the market for Government securities and what margin will remain for a reduction in interest rates as compared with financing done by private concerns? The doubt in that respect, which is a valid doubt, must vitiate the entire proposal for doing away with refinancing without profit through lower interest charges in Government borrowing. Yet Mr. Harrison boldly proclaims that "What we propose is merely that the Government provide credit for the operation of the railroads, take the profit out of furnishing credit and relieve the industry of that evil and unnecessary load." No such easy task, however, is possible, and of course with a shorter work day and a shorter week, with at the same time increased pay for the employees, additional items of expense are created. Higher transportation costs will therefore have to be added to the higher costs in other directions made necessary under the operation of the National Recovery Act. Railroad labor, the same as other classes of labor, will have to solve the problem of how this is to be accomplished. Quite unquestionably, labor will have to moderate its expectations of attempting to achieve the impossible by continuing in its present course, otherwise its own doom will await it. HE professorial talent which Mr. Roosevelt has enlisted in creating his celebrated brain trust, and which figures so prominently in the discussions of the day, is not without opposition in its own ranks. There are college professors, and of highest rank, too, who are as vigorous opponents of the Roosevelt gold 'buying policy and the plan for debas- T 4399 ing and demeaning the gold dollar as the weighty opposition to be found in banking and business circles generally. Among the recent declarations on that subject that have found expression none are stronger or more convincing that those which have just come from a group of economists of Yale University. It is the unreserved way in which these teachers of economics in Yale University express their views that attracts chief attention, and makes what they say in reinforcement of their views of greatest interest and value. They begin by expressing "the grave concern with which we view the present consequences and tendencies of the Government's attitude toward the monetary system." They go on to say that "although we (they) believe that a continued increase in the price level, such as normally occurs during the period of recovery is desirable, we oppose any attempt to secure an artificially higher level of prices by means of manipulation of the monetary structure, such appearing now to be the program of the Administration as indicated by its gold purchase policy." There is here no attempt to trifle with the subject. These teachers of economics are opposed to artificial means for raising prices, and they have no hesitation about going on record as to their stand. What is more, they think the effort untimely. "While we recognize the possibility and the desirability of ultimately developing sound methods of securing a more stable price level than has prevailed in the past, we are certain that the present is, of all times, least appropriate to experiment along this line." What the country needs to-day, in their estimation, and as a matter of fact in that of nearly all thoughtful students, is "above all else the restoration of orderly industrial activity, with the renewal of employment and the return of a normal income stream to all the people." In contrast they find that "industrial activity is to-day at a low ebb, the investment of new capital has almost completely ceased, the value of bonds, including those of the United States Government, and the prices of corporation stocks and of commodities are exhibiting the evident reactions to fear and nervous speculation." These, they aver, "are the natural consequences of general uncertainty regarding the future of the monetary unit in which all values are expressed. Such conditions are not favorable to economic recovery." They go further and declare their belief that "The recent monetary policy of the Government has already awakened distrust of the good faith and credit of the United States." They add that "The continuation of such policies, in connection with the heavy borrowing which the extraordinary expenditures of the Government are now necessitating, is likely to have disastrous effect upon the finances of the National Government and to force the nation into crude paper money inflation—of all forms most harmful and least susceptible to control." There is here a warning which should clearly be heeded. Most important of all, they have no hesitation in expressing their belief that the United States should immediately announce that it will return at the earliest possible moment to a free gold standard, and that the gold content of the dollar shall be substantially the same as at present, that is, 25.8 grains standard." There is here no attempt to compromise or to qualify. They are not asking for stabilization on the current debased value of the dollar—debased 4400 Financial Chronicle by artificial means—at 63c. or 65c. so as to end uncertainty, a proposal which certain eminent bodies and eminent men have latterly indicated they might accept as a satisfactory solution, simply so as to remove doubt and uncertainty for the immediate future. No emanations of that kind come from this eminent group of teachers of economics. It is to be hoped that by taking a resolute stand of that kind the result will be to influence public opinion to an important degree along the same lines. To compromise on some half-way measures of debasement would accomplish nothing and lead nowhere. The advocates of depreciation of the dollar if they got a 63c. or a 65c. dollar would not deign to accept such a figure as final. They would demand as the next step, say a 55c. dollar, then a 45c. dollar, then a 35c. dollar, with the ultimate resting place the printing press dollar. These college professors, in order that there may he no misunderstanding as to their opposition to all forms of currency tainted with insecurity and resting on no sound basis, finally express their belief that "Under no circumstances should there be an issue of circulating Treasury notes, such as the greenbacks, or the remonetization of silver, whether by way of bimetallism, symmetallism, or otherwise, or any Government purchase of silver except for the meeting of subsidiary coins." It is refreshing to find such a courageous and sensible expression from men versed in the subject and such stalwart opposition to so many of the errors of the day. REDIT and currency inflation is still actually taking place, and in a very emphatic way, notwithstanding the universal declaration against inflation even on the part of those who are ready to yield on the point of maintaining the old gold content of the dollar. Last week and the week before inflation was caused by the action of the Federal Reserve authorities in the purchase of large volumes of bankers' acceptances in the open market. There was no addition to the holdings of U. S. Government securities. These holdings of acceptances were induced by the low purchasing rate for bankers' acceptances maintained by the Federal Reserve banks— the New York Reserve Bank buying rate for bills running from 1 to 90 days being only M of 1% per annum. These holdings of acceptances increased from $23,866,000 Nov. 29 to $61,284,000 Dec. 6 and to $116,158,000 Dec. 13. The present week the holdings of acceptances are a little lower at $113,375,000 and borrowing by the member banks is also a little lower, having fallen from $118,184,000 to $115,188,000 as indicated by the discount holdings of the 12 Reserve institutions. As a result the bill and security holdings of the Reserve institutions which constitute a measure of the volume of Reserve creditoutstanding aggregate only $2,661,655,000 this week (Dec. 20) against $2,667,535,000 last week (Dec. 13). The holdings of U. S. Government securities which form the greater part of these totals were again substantially unchanged being reported at $2,431,598,000 this week and $2,431,608,000 last week. There has nevertheless been further inflation, but this time instead of the expansion being in Federal Reserve credit, the increase is found in the volume of Federal Reserve notes in circulation. Note circulation last week was a little smaller, having diminished then about $4,500,000, but the present week there has been a jump from $3,038,172,000 to $3,091,871,- C Dec. 23 1933 000 in the amount of Federal Reserve notes in circulation and a further increase in Federal Reserve bank notes from $208,853,000 to $212,839,000. For the two kinds of notes the increase,it will be observed, has been over $57,000,000. The expansion will no doubt be referred to as due to the increase in demand for currency in connection with the Christmas and New Year holidays. Gold holdings further diminished in the same moderate way as in previous weeks, dropping from $3,571,605,000 to $3,570,084,000. With the gold reserves thus diminished and with the reserve requirements against Federal Reserve notes in circulation very heavily increased, reserve ratios were again reduced by a small fraction. For the present week the ratio of total gold reserves and other cash to deposit and Federal Reserve note liabilities combined stands at 63.7% against 63.9% last week. The reserve requirements against deposits were smaller, these deposits the present week standing at $2,811,780,000 as against $2,891,608,000 last week. Member bank reserve deposits, which are the principal item in the total deposits, fell only from $2,637,936,000 to $2,635,638,000. The other large reduction was in the Government deposits, which fellfrom $93,914,000 to $43,831,000. The amount of U. S. Government securities held as part collateral for Federal Reserve note issues increased during the week from $585,000,000 to $644,000,000. • ROP values on the farms for the harvest of 1933, as calculated by the Department of Agriculture at Washington, are considerably higher than they were for the preceding year. The total as indicated by the Department in its final report issued on Tuesday of this week is $4,076,537,000 and compares with $2,879,517,000, the corresponding figures for 1932. For 1931, the value of the same crops was placed at $4,102,354,000 and for 1929 $8,088,494,000. In the figures for this year no amount is included for the distributions under the various adjustment programs arranged by the Administration at Washington. The total for the latter has been indicated at $300,000,000 and covers mainly four crops: cotton, wheat, corn and tobacco, but more than five-sixths of the whole amount goes to cotton and wheat For cotton, the latest estimate of yield was 13,177,000 bales, compared with 13,002,000 bales for 1932. This was after 10,000,000 acres of cotton were taken out of cultivation this year, reducing the area for 1933 to 30,144,000 acres this year compared with 35,939,000 acres in 1932. The value of this year's crop is placed at $617,716,000 against $371,861,000 for the 1932 production. Next comes wheat, the total yield this year being 527,413,000 bushels compared with 744,076,000 bushels for the preceding year. The farm value increased this year to $357,525,000 against $238,305,000, the latter the value for the yield of 1932. All varieties of wheat contributed to the loss in production for this year's crop, while each also shows a higher farm value this year than in 1932. The corn harvest this year is placed at 2,330,237,000 bushels while in 1932 it was 2,906,873,000 bushels, yet the farm value for this year of $917,605,000 compares with $558,902,000 for 1932. Tobacco production was larger this year, the yield being estimated at 1,396,174,000 pounft against 1,022,558,000 pounds produced in 1932. This year's return to planters is estimated at $180,647,000, compared with $107,357,000 the indicated value of the tobacco crop of 1932. A very heavy loss is indicated for this C Volume 137 Financial Chronicle 4401 in fares over the present five cent rate. On Wednesday a slump in a number of specialties led to declines running from four to 10 points in these specialties, and this carried the whole list of stocks lower afresh. Atlas Tack was the chief of the specialties which suffered, this stock, through speculative 2 Feb. 27 manipulation, had been boosted up from 11/ to 343 4 Dec. 15, and then dropped on Saturday to THE winter wheat acreage planted this fall for 211/ 2, to 14 on Tuesday, and to 10 on Wednesday, harvest next year is estimated at 41,002,000 and these performances became the subject of inacres by the authorities at Washington. In the vestigation by both the Stock Exchange and the New statement accompanying this report it appears that York Attorney-General. Union Bag & Paper was the above figures are 4% less than the 42,692,000 another stock that was reported to be under investiacres planted to winter wheat in the fall of 1932 gation by the Stock Exchange. This stock had and 7.2% less than the average for the years 1929- moved up from 5/ 1 2Jan.13 to 60 July 18, but dropped 1931, which was 44,186,000 acres. This makes a very the present week (on Dec. 20) to 361/ 2. Some other poor start for the curtailment in production next stocks in which pool operations had been quite proyear of 15% to meet the expectations of the recovery nounced during the course of the year also suffered program for the 1934 wheat harvest. Furthermore, severe breaks. Among the chief of these were Celasome of the above figures do not agree with previous nese Corporation, Industrial Rayon, Columbian Carrecords. In December of last year the planting to bon, American Commercial Alcohol, Auburn Auto winter wheat in the fall of 1932 was officially an- and a few other volatile issues which suffered with nounced at 39,902,000 acres. Winter killing in the the others. On Thursday persistent selling of the winter of 1932-1933 was exceptionally heavy, at utilities stocks, which carried a number of them to 12,880,000 acres, and the area harvested this year the lowest figures of the year, and some other weak is now announced at 28,420,000 acres. spots, such as United States Industrial Alcohol and The condition of the new crop planted this fall is A.31. Byers, prevented any recovery of consequence now placed at 74.3% of normal as of Dec. 1. This in the general list. compares with 68.9% for the crop planted a year ago On Friday, as a result of the announcement of the and with a 10-year average condition of 83.5% for Government's silver purchase and silver coinage plan the 10 years, 1922-1931, inclusive. Conditions this the course of stocks was completely reversed, and year were very poor. The soil was very dry and has prices shot skyward with great rapidity. The metal shown no improvement during the progress of the stocks in particular spurted up in sensational fall. On the basis of the report now issued the De- fashion. Many stocks opened at 5 to 10 points from partment estimates a production of 435,000,000 the close the previous night. American Smelting & bushels of winter wheat next year. A year ago the Refining, in a delayed opening, finally appeared in estimate of yield for the 1933 harvest was 337,- a block of 12,000 shares at 45, a gain overnight of 000,000 bushels; the actual production was 351,- 5% points. U. S. Smelting & Refining opened at 99, 030,000 bushels. up lfl points; Cerro de Pasco opened at 391/ 2,an overThe area sown to rye the past fall, to be harvested night rise of 7/ 1 2points, and American Metals opened next year, is given as 5,091,000 acres; last year the at 20/ 1 2,an advance of 3 points. Kennecott Copper, area sown was 4,439,000 acres. The condition of Anaconda, International Silver, International rye on Dec. 1 this year is estimated at 69.9% of nor- Nickel and Howe Sound were prominent in the mal, as compared with the previous low record a same way. In the industrial list American Can, year ago of 76.3%. Production of rye this year from U. S. Steel, Allied Chemical and a number of other the crop planted in the fall of 1932 was only 21,- stocks distinguished themselves in the same way. 184,000 bushels. Public utilities were a weak feature and sagged. As far as the market as a whole is concerned, HE) New York stock market this week was there have been no features of general influence. severely depressed, with large and general de- The foreign exchanges weakened, bringing a reclines in prices, continued day after day, and eventu- covery in the price of the dollar, but this of course ating in a wide break in a number of specialties was not considered a stimulating influence in the on Wednesday, which left the whole stock list in a eyes of the speculative fraternity. To add to the demoralized condition, but on Friday a sharp up- general discomfiture, commodity prices, and turn followed as the result of President Roosevelt's especially grain, were also reactionary, and on some silver purchase proclamation. At the half-day ses- days sharply lower, until Friday, when they bounded sion on Saturday prices were lower, and severe fur- upward with the stock market. Bond prices also ther reaction occurred on Monday, notwithstanding were weak, though with some recovery in the higher. that the Reconstruction Finance Corporation ad- priced issues the latter part of the week. As far as vanced its gold price 5c. an ounce, from $34.01 to the state of trade and business is concerned, a favor$34.06, being the first change since Dec. 1, but this able feature on Monday was the report of the "Ameravailed nothing, and the market continued to react ican Iron and Steel Institute," showing that the on that day. Stocks continued depressed on Tues- steel mills of the country were engaged to 34.2% of day, in face of a flurry of buying in Brooklyn-Man- capacity, being an increase of 2.7 points over the hattan Transit, Interborough Rapid Transit and previous week, when the rate was 31.5%, and a gain Third Avenue Railway shares on reports that transit of 5.9 points over the 28.3% rate of two weeks ago. unification negotiations in this city had started be- This was against the usual seasonal trend, but may tween Mayor-elect La Guardia and the heads of the have had less significance than was supposed, since local transportation lines, with a prospect that these there was comparatively heavy specifying against negotiations might eventually lead to some increase contracts which must be completed before the end of year's yield of oats, production having been not more than one-half of a normal output, yet the farm value of this year's crop is very much higher than last year. Barley and rye also contribute to heavy losses this year in production with a higher crop value. Practically all of the other crops make the same showing. T 4402 Financial Chronicle Dec. 23 1933 the closing quarter of the year under the code for North American at 133/ 2 against 144; Standard Gas the steel industry. In any event, the report had no & Electric at 7 against 814; Consolidated Gas of influence in improving the course of the stock mar- N. Y. at 343 4 against 38; Brooklyn Union Gas at ket, which on that day (Monday) suffered a further 60% against 65; Pacific Gas & Electric at 153 4against 2; break, even though the Reconstruction Finance Cor- 173A; Columbia Gas & Electric at 10% against 123/ poration on the same day, as already stated, ad- Electric Power & Light at 43% against 514; Public vanced its price for gold without causing any im- Service of N. J. at 33% against 3532; J. I. Case % against 7034; Internaprovement in the market. Car loadings of revenue Threshing Machine at 685 tional Harvester at 40 against 403/2; Sears, Roebuck freight for the week ending last Saturday, Dec. 16, & Co. at 423 A against 423/ 2 ; Montgomery Ward & Co. were reported at 554,832 cars as against 515,769 cars at 223/2 against 223 4 ; 4134; Woolworth at 39% against in the corresponding week of the previous year, Western Union Telegraph at against 533/2 5634; being an increase of 7.5%, a greater ratio than that % 5 Safeway Tel. Stores at 45 against 4534; American of the weeks immediately preceding. For the same % 5 & Tel. at 1073 4 against American Can at 1133 4 ; 97 week the production of electricity by the electric 2; Commercial Solvents at 31% against light and power industry of the United States was against 963/ 4 against 738, and Corn reported at 1,644,018,000 kilowatt hours as against 32%; Shattuck & Co. at 63 1,563,384,000 kilowatt hours in the same week of Products at 753/2 against 768. Allied Chemical & Dye closed yesterday at 149 1932, being an increase of 5.2% as against 6.6% the against 1473 4 on Friday of last week; Associated Dry prevrous week and 5.9% the two weeks preceding. Goods at 1234 against 133;E. I. du Pont de Nemours As indicating the course of the commodity marat 9334 against 90; National Cash Register "A" at 17 kets, the December option for wheat in Chicago against 17%; International Nickel at 21% against closed yesterday at 81%c. as against 83c. the close 21%; Timken Roller Bearing at 30% against 293/2; on Friday of last week. December corn closed yes4 against 583 4; Coca-Cola at terday at 44y2c. against 44%c. the close the previ- Johns-Manville at 583 ous Friday. December oats closed yesterday at 94 against 95; Gillette Safety Rp,zor at WA against 33/ 1 4c. against 34%c. the close on Friday of last 93/8; National Dairy Products at 1234 against 133/8; 2; Freeportweek. December rye at Chicago closed yesterday at Texas Gulf Sulphur at 4134 against 413/ 5 against 443i; United Gas Improve52c. bid against 53/ 1 4c. bid the close on Friday of last Texas at 44% % against 153 / 8; National Biscuit at 46% week, while December barley at Chicago closed yes- ment at 143 against 47%; Continental Can at 74% against 763/2; terday at 433 / 4c. against 42%c. the close on the pre2; Gold Dust Corp. vious Friday. The spot price for cotton here in Eastman Kodak at 80 against 813/ at 16% Brands at 2134 against Standard 17%; New York yesterday was 10.25c. as compared with 10.20c. on Friday of last week. The spot price for • against 22%; Paramount-Publix Corp. ctfs. at 2 rubber yesterday was 8.88c. against 8.80c. the previ- against 1%; Westinghouse Elec. & Mfg. at 373/2 ous Friday. Domestic copper was quoted yesterday against 3934; Columbian Carbon at 60 against 623/2; at 8/ 1 4c. against 8/ 1 4c. the previous Friday. Silver Reynolds Tobacco, class B at 443/2 against 463 4; 4 against 173 %;Liggett & Myers, class moved within a limited compass until Friday, when Lorillard at 153 a brisk advance occurred. In London the price B at 78 against 8434, and Yellow Truck & Coach at yesterday was 19 1/16 pence per ounce as against 434 against 434. Stocks allied to or connected with the alcohol or 18 11/16 pence on Friday of last week The New brewing group include some of the specialties that York quotation yesterday was 44.13c. bid as against suffered severe breaks. Owens Glass closed yester43.45c. bid the previous Friday. Coming to the matter of the foreign exchanges, which moved lower, day at 80 against 803/2 on Friday of last week; but not in a very pronounced fashion, cable trans- United States Industrial Alcohol at 51% against 60; fers on London yesterday closed at $5.101/ 4 as against Canada Dry at 255 % against 27; National Distillers $5.111/ 4 the close the previous Friday, while cable at 23 against 2534;Crown Cork & Seal at 2834 against 4against 29, and Mengel transfers on Paris closed yesterday at 6.113 / 4c. com- 32%;Liquid Carbonic at 273 pared with 6.11c. the close on Friday of last week. & Co. at 6 bid against 8. The steel shares were well maintained in the general On the New York Stock Exchange 14 stocks advanced during the week to new high figures for 1933 break. United States Steel closed yesterday at 4732 and 36 stocks touched new low figures for the year. against 46% on Friday of last week; United States For the New York Curb Exchange the record for Steel pref. at 89 against 87; Bethlehem Steel at 363 4 the week was 16 new highs and 87 new lows. Call against 35 8, and Vanadium at 22 against 22%. loans on the New York Stock Itxchang'e were quoted In the auto group, Auburn Auto closed yesterday at 543 against 5734 on Firday of last week; General at 1% per annum all week. 3 against 33%; Chrysler at 54% 3 against Trading was light except on Wednesday and Motors at 34% Friday. On the New York Stock Exchange the sales 51%; Nash Motors at 233 4 against 2434; Packard at the half-day session on Saturday last were 896,570 Motors at 33A against 4; Hupp Motors at 33 4 against shares; on Monday they were 1,342,900 shares; on 4, and Hudson Motor Car at 14 against 13%. In Tuesday 1,024,730 shares; on Wednesday 2,163,068 the rubber group, Goodyear Tire & Rubber closed shares; on Thursday 1,021,086 shares, and on Friday yesterday at 343 against 353/2 on Friday of last week; 2,419,651 shares. On the New York Curb Exchange B. F. Goodrich at 133/2 against 133 4, and United the sales last Saturday were 138,218 shares; on States Rubber at 153/ against 16/ 8 8• Monday 282,700 shares; on Tuesday 255,648 shares; The railroad shares declined with the general list, on Wednesday 389,040 shares; on Thursday 251,793 but in less violent fashion. Pennsylvania RR. closed shares, and on Friday 457,074 shares. yesterday at 303/2 against 3034 on Friday of last As compared with Friday of last week, prices are week; Atchison Topeka & Sante Fe at 553/2 against lower in many instances, notwithstanding the spec- 553/2; Atlantic Coast Line at 39 against 40; Chicago tacular rise on Friday. General Electric closed Rock Island & Pacific at 3 against 3 bid; New York 3 against 353/2; Baltimore & Ohio at yesterday at 18% against 193 4on Friday of last week; Central at 33% Volume 137 Financial Chronicle 2334 against 2434; New Haven at 15% against 17; Union Pacific at 1123/ against 114; Missouri Pacific at 2% against 332; Southern Pacific at 19% against 2034; Missouri-Kansas-Texas at 834 against 83/2; Southern Railway at 25 against 2534; Chesapeake & Ohio at 393 4 against 39; Northern Pacific at 22 8 against 243/ s, and Great Northern at 20 against 21. The oil stocks also moved lower. Standard Oil of N. J. closed yesterday at 459/i against 46% on Friday of last week; Standard Oil of Calif. at 403,1 against 413 %, Atlantic Refining at 283 4 against 28/. In the copper group, Anaconda Copper closed yesterday at 14% against 1434 on Friday of last week; Kennecott Copper at 207 % against 2034; American Smelting & Refining at 46 against 4334; Phelps Dodge 4 against 343', at 17 against 15; Cerro de Pasco at 363 and Calumet & Hecla at 45% against 434. RICE trends on the leading European stock exchanges followed no general pattern in the pre-holiday trading of the current week. The London Stock Exchange was cheerful at almost all times, and transactions kept up at a brisk pace. The Paris and Berlin markets, on the other hand, were dull throughout, with the alternate advances and recessions occasioning little net change for the week. The bright tone at London was said to be due very largely to favorable . earnings and trade reports. These outweighed the uncertainties of the American monetary experiment for the time being. Trade improvement in Great Britain is taking place on a wide front, with retail dealings, export trade, heavy industries, shipping and other important lines all included. French foreign trade returns for November, made available in Paris on Tuesday, reflected a further decline, while weekly increases in the French unemployment totals attest declining domestic trade as well. These factors, combined with political uncertainty and continued disquietude regarding the monetary aspects, caused a subdued atmosphere on the Paris Bourse. On the Berlin Boerse some nervousness was occasioned by the Reichsbank decision to curtail further the interest payments on private long-term external debts. German unemployment figures again are improving, after a seasonal increase in the first half of November. For the latter half of that month unemployment in the Reich is officially reported to have declined by 62,000 to 3,714,000, or 1,650,000 below the total for this time last year. Firmness was general on the London Stock Exchange as trading started last Monday. British funds advanced steadily on excellent revenue prospects and the growing belief that tax reductions will be possible next year. Industrial securities were in favor, with special attention paid to aviation and motor stocks. The international list became irregular late in the day, owing largely to apprehensions regarding the German interest payments for next year. The tone on Tuesday was again cheerful, notwithstanding some slight recessions in British funds. Industrial stocks remained in good demand and home railway shares also improved. After early weakness, German bonds improved and the equities in the international list also showed gains. In an active session, Wednesday, advances were recorded in almost all sections of the market. British funds -reflected quiet investment buying, while industrial stocks made larger gains. The international list was relatively quiet, but also better. Although activity P 4403 diminished Thursday, owing to the impending holidays, firmness again was the prevailing note. British funds were marked up and many industrial stocks showed buoyancy. Anglo-American trading favorites were heavy in the international list, owing to the pessimistic reports from New York. The firm tone was continued yesterday, despite pre-holiday dulness, but the advances were small. Trading on the Paris Bourse was slow and desultory in the initial session of the week, with the price trend mixed. Rentes improved slightly, but most industrial stocks lost a little ground. The changes were unimportant, however, in all sections of the market. Reports of the session on Tuesday reflected an equally dull and irregular market, despite a more favorable outlook for a balanced national budget as a result of the Chamber and Senate debates. Rentes and bank shares generally declined, while utility stocks improved. Wednesday's dealings were marked by larger transactions in a few speculative favorites. The so-called commodity stocks tended to improve, but rentes remained soft. The upward Movement was more pronounced on Thursday, with equities in .general demand. Gains were reported in most French shares, but the international list was dull and soft. Rentes were substantially higher. In a quiet session, yesterday, rentes again improved, but other issues were irregular. The Berlin Boerse was dull, with prices generally weaker in the first session of the week. Most losses were small, but among the more speculative issues they ranged up to 7 points. Bonds resisted the trend and showed no changes of any consequence. The opening Tuesday was uncertain, owing to the overnight announcement of the new transfer regulations covering interest due on long-term external bonds. The trend became more confident later, however, and initial losses were regained, while in some instances fair gains were registered. Reichsbank shares were an exception, as this issue fell several points. A downward movement prevailed on the Boerse on Wednesday, with the trend influenced partly by a 4-point drop in Reichsbank stock. Shares of industrial concerns also were weak, but bonds held rather well. Business Thursday was very quiet on the Boerse, but the trend improved. Reichsbank shares regained a'small part of the previous losses, while other securities showed fractional advances. After a good opening, yesterday, prices declined slightly, and net changes at the end were unimportant. ORMAL organization of the Foreign Bondholders' Protective Council, announced in Washington, Monday, represents an admirable and highly necessary first step for safeguarding the interests of many thousands of holders of external dollar obligations, now in partial or complete default. Care and discrimination appears to have been exercised in the undertaking, which reflects the experience of other foreign lenders, notably Great Britain, in dealing with the same problem. A direct Government agency was contemplated for a time, as Title 2 of the Securities Act of 1933 provided for a protective corporation which would have operated initially with Government funds. But formation of the Government agency was made contingent upon a Presidential proclamation which Mr. Roosevelt wisely refrained from issuing. Clearly, a virtual Government department for the collection of the indebtedness represented by defaulted bonds would F 4404 Financial Chronicle have involved the State Department in all manner of delicate and compromising situations, and it is well to avoid them. The Council now formed was sponsored,in a sense, by the Administration in Washington. The project, however, is one that long has been agitated, and it is well known that many preparatory steps were taken toward the same end by financial leaders here, long before the matter engaged the attention of the Government. The present organization is headed by Raymond B. Stevens, of New Hampshire, as permanent President, while the Executive Committee and the Directing Board includes the names of eminent persons from all parts of the country. The list of those who will be active in the Council, together with the formal statement issued on its organization, are reprinted in full in subsequent pages of this issue. The Council, it appears, will act only with respect to public bonds issued by foreign governments, States and municipalities that are now in default, and not with regard to obligations of foreign private corporations. This distinction doubtless is due to the fact that foreign corporations can be haled into court, whereas governmental bodies are covered by the protective mantle of sovereignty which renders them immune to legal action by private parties. Whether the Council is correct in making the distinction between public and private debtors is something for the future to show. It is earnestly to be hoped that the new Council will operate efficiently and at modest cost to the bondholders, as its prototype, the British Corporation of Foreign Bondholders, always has done. It is well to point out also that the ratio of foreign dollar bond issues in default to the total of such issues compares favorably with the default ratio of almost all other types of bonds. ERMAN financial authorities not only will extend into next year the regime of curtailed service payments on the external long-term obligations of German private borrowers, but will reduce the payments further from the levels prevalent during the final six months of 1933. Dr. Hjalmar Schacht, as President of the Reichsbank, issued a statement in Berlin, Monday, in which he indicated that interest payments due during the first half of 1934 will be met to the extent of 30% in foreign currencies, while the remaining 70% will be paid in scrip redeemable at half its face value in foreign currency. This means that holders of German dollar, sterling and other external bonds will be able to obtain only 65% of the sums actually due them on interest account in their own currencies. In the latter half of this year the German authorities have made 50% available in foreign currency, while the remaining 50% was paid in scrip redeemable at half its face value, or a total of 75% in the respective foreign currencies. Amortization payments will remain suspended entirely on the private external long-term debts. Exempt from these arrangements are the German Government loan of 1924 (Dawes plan) on which both interest and amortization transfers are to be continued in full, the Government loan of 1930 (Young plan) on which interest payments are to be transferred in full and amortization payments suspended, and the dividends declared on Reichsbank shares, held externally. Short-term loans made by others to German borrowers come under the separate regime of the standstill agreement. In view of Dr. Schacht's statement on the G Dec. 23 1933 long-term loans, it is expected in many quarters that efforts will be made also to reduce transfers on the so-called standstill credits. "I have a full understanding of the displeasure of creditors over the reduced transfer possibilities," Dr. Schacht declared in his announcement. The representatives of the creditors were wrong last June when they held that Germany could make transfers in full, he remarked, and they are wrong again when they insist that Germany now can continue to pay 50% in cash and 50% in scrip. Holdings of foreign exchange by the Reichsbank have increased 127,000,000 marks in the period of the partial moratorium, Dr. Schacht admitted, but this gain he attributed very largely to the operation of laws for the recall by Germans of all their external capital, under pain of severe penalties. This increase in the exchange supply cannot be counted upon in the future, he said. For this reason, the Reichsbank President declared, the increase in the gold and foreign exchange reserves of the Reichsbank which the foreigners themselves had recognized as imperative, had not been achieved. It was indicated that the Reichsbank was forced to take more drastic action on its own initiative and responsibility. Just before the statement was issued the Central Committee of the Reichsbank held a long meeting, at which it is said to have given unanimous approval to the declaration. • The Reichsbank statement indicated that Germany's foreign debt service obligations amounted to 1,497,000,000 marks annually. German investments abroad and other items could be counted upon to realize 520,000,000 marks, leaving 977,000,000 marks to be raised from the favorable foreign trade balance, or a monthly export surplus of 81,000,000 marks. Depreciation of the dollar and other currencies had reduced the actual foreign trade surplus requirement to 74,000,000 marks monthly,and a 50% direct payment on external long-term debts in foreign currencies therefore would require only 37,000,000 marks monthly, it was calculated. Actually,the apparent export surplus averaged 65,000,000 marks from July to November, inclusive, but Dr. Schacht contended that the figure is illusory, since no less than 200,000,000 marks out of the 327,000,000mark surplus total for the five months was accounted for in the form of blocked mark account releases, repatriated German bonds, and in other ways. The gain to Germany occasioned by the depreciation of currencies in which her foreign debts must be met was more than offset, it was argued, by the adverse effect of exchange uncertainty on German exports. "Nobody will be happier than the Reichsbank if a revival of world trade and of German exports should prove it wrong," Dr. Schacht said in announcing the decision. "It would thereby be put in a position to increase the transfer quota for the second half of 1934. In order to gain this goal, German foreign exchange control must, in future, be directed to promoting increased exports. If increased exports are not possible, then the transfer of foreign obligations will have to be stopped entirely." By far the largest proportion of the German external issues affected by the Reichsbank decision are held in the United States. Acting in behalf of investment banking firms which in the past have underwritten German dollar bond issues, Ray Morris, of Brown Brothers Harriman & Co., announced Volume 137 Financial Chronicle Tuesday that a banking meeting will be held next Tuesday to consider the Reichsbank transfer action. John Foster Dulles, who attended recent conferences in Berlin as the representative of American creditors, will be back in time for the meeting, Mr. Morris said. He pointed out that all the representatives from the various creditor countries who took part in the Berlin discussions held the view that Germany was unjustified in reducing the foreign exchange to be transferred in respect of interest due during the first half of 1934, and that all had vigorously opposed such reduction. In London, Dr. Schacht's statement was not held a sufficient explanation of the reduced transfers. Strong protests are being prepared and the British Government may be asked to make diplomatic representations, a dispatch to the New York "Times" said. The recent improvement in German economic life, of which the Nazis boast, was pointed to in London as a reason for an increase, rather than a decrease, in the transfer quota on German long-term private debts. CTING in its high legal capacity, the British House of Lords on Dec. 15 handed down an opinion upholding the validity of the gold clause in a bond contract and reversing the decisions of two lower British courts which had held that the borrower was released from his obligation when effecting payment in depreciated pounds sterling. The judgment of the law Lords was unanimous and no appeal can be taken to any other British court. The decision concerned an issue of £500,000 35-year 51/ 2% sinking fund bonds of the Belgian Societe Intercommunale d'Electricite, floated in London in 1928 with a proviso for debt service payments "in gold coin of the United Kingdom of or equal to the standard of weight and fineness existing on Sept. 1 1928." Although the pound sterling has depreciated much from the level described, the Belgian debtor continued to make interest payments in ordinary pounds, without reference to the former valuation, and two British courts found this procedure correct. The Lords, however, accepted the contentions of the bondholders that the gold clause could have no meaning unless it was intended to guard against depreciation of the currency in which the debt is payable. It was indicated in London, Tuesday, that the Belgian company had accepted the judgment and would effect payment of all coupons in the equivalent of the gold value of sterling, as described in the indenture. The City recoenized, a London dispatch to the New York "Times" said, that the decision can have only a sentimental effect on the innumerable American bond contracts with similar gold clauses, but the opinion of the law Lords nevertheless was welcomed warmly as fortifying respect for contracts generally. There are only a few issues outstanding in London with similar gold clauses, and conjecture was rife regarding the possible effect of the decision on such bonds. The British tranche of the German Young plan loan contains the clause, but the German Government has paid the last two coupons in depreciated pounds, on the ground that such payment conforms to the practice adopted in similar cases. Some Egyptian Government loans in London also contain the gold clause. A 4405 for enlarged purchases of French wines and spirits by importers here have been carried to a successful conclusion by the Administration in Washington. Encouragement of the quota system for controlling imports is hardly to be commended, but almost all nations have found it necessary to adopt this expedient in order to protect their exporters against the lengths to which the practice has been carried in France. The United States Government intends to negotiate similar quota agreements with some 20 additional countries, in the hope of stimulating exports of agricultural products, and the arrangement with France therefore assumes considerable importance. The French Government indicated a week ago that it was ready to increase the quota covering American fruits, but it became known at the same time that import tariffs would be increased sharply on the products under negotiation. This held up the agreement until Thursday, when it finally appeared that France would increase the quota on American apples and pears fourfold, in return for a doubled French liquor quota by the United States. Entry of about 20,000 long tons of apples and pears from this country will be allowed by France under the agreement, while American imports of French wines and spirits will be increased to 1,568,000 gallons. IRECT negotiations between France and Germany regarding the Reich's part in any future armaments convention, and such other matters as the Saar area and a possible non-aggression pact, apparently have been carried to considerable lengths. Diplomatic activity was continued strenuously this week, with the British Government obviously exercising its powerful influence in favor of adjustments on all outstanding problems of the two leading Continental Powers. Full reports of recent conversations in Berlin between Chancellor Hitler and the French Ambassador, Andre Francois-Poncet, were received in Paris, Tuesday, a dispatch to the New York "Times" states. The contents were not revealed, but it was confidently reported that the German proposals closely follow the outlines recently made available. Renunciation by the German Government of any claim to Alsace-Lorraine and immediate settlement of the Saar question were leading items in the German proposals, as reported. Berlin would agree to permit the heavily-armed States to retain present armaments, provided Germany is granted the right to a short-term army of 300,000 men, equipped with "defensive armaments" equal to one-quarter of the combined similar armaments of France, Poland and Czechoslovakia. No claim would be made, in that event, to offensive armaments for the Reich. The French principle of periodic inspections and controls would be accepted by Germany and made applicable to Storm Troop battalions and special guards, as well as to the regular forces. Berlin also is ready to adhere to a new non-aggression treaty for a suggested period of 10 years, it is said. An Associated Press report from Paris stated that these suggestions by Herr Hitler received the usual cool reception in French circles. It was indicated Thursday that the French Government might even be unable to continue the discussions, owing to the EGOTIATIONS with the French Government opposition of powerful groups in the Chamber to regarding a reciprocal agreement whereunder the outlined terms. Significant, on the other hand, France would buy more American fruit in return is a Paris report to the New York "Times," which N D 4406 Financial Chronicle states that Chancellor Hitler not only put forward definite proposals for adjustment of the FrancoGerman armaments dispute, but also asked some pertinent questions regarding French intentions if the proposals are rejected. Herr Hitler, it is said, wished to know specifically when France will begin the disarmament called for in the Treaty of Versailles, and what the extent of any such disarmament will be. An exchange of French and British views on the problems was started in Paris yesterday by Foreign Ministers Joseph Paul-Boncour of France and Sir John Simon of Great Britain. Before leaving London, Thursday, Sir John Simon made a cautious statement in the House of Commons in which he admitted that formal proposals had been made by Chancellor Hitler. "Declarations which have appeared in certain public prints that he is suggesting non-aggression pacts between Germany and her neighbors are justified," the Foreign Secretary said. "As we understand it, his proposals under that heading do not confine themselves to one particular neighbor but are put forward for consideration by all the neighbors of Germany." The British Government, Sir John Simon said, is determined to stand by and support unswervingly the League of Nations. He also indicated that no concrete proposals for reforming the League had been advanced by Italy or any other country. --4-- EMPORARY adjustment of Spanish political difficulties was achieved last Saturday through the formation of a new Cabinet by Alejandro Lerroux, leader of the Republican Radicals, to succeed the Ministry of Diego Martinez Barrios, which resigned the preceding day. Senor Lerroux, a staunch adherent of the Republic, long since was selected to head the Cabinet, but an interim regime was formed by Senor Martinez Barrios to hold office until after the national elections of last month. Although the elections showed an astonishing trend toward the conservative groups, the original plan to name Senor Lerroux as Premier has been followed out. The Cabinet's existence will be precarious, as it must depend on the good-will of the Rightist parties, which now predominate in the Cortes. Premier Lerroux is assured of the support of only 115 members in the Cortes, which numbers 470 Deputies. In the negotiations leading to the formation of the Lerroux Cabinet, the Rightist leaders are said to have informed President Alcala Zamora that the moment has not come for a Conservative Government. Senor Lerroux therefore formed a Government which consists almost entirely of his own Republican Radical followers, who occupy a political place midway between the Conservative and Anarchist-Communist parties. The new Premier went before the Cortes on Wednesday and presented a very vague program, but he nevertheless was accorded the confidence of the 'Chamber by a vote of 265 to 53. The Cabinet announced last Saturday follows: T Premler—Alejandro Lerroux. Interior—Manuel Rico Avello. Public Instruction—Atanagildo Pareja Vebenes. Finance—Antonio Lara. War—Diego Martinez Barrios. Marine—Juan Jose Roca. Public Works—Rafael GUerra del Rio. Agriculture--Cirilo del Rio. Industry and Commerce—Ricardo Samper. Communications—Jose Maria Cid. State—Leandro Pito Romero. Justice—Ramon Alvarez Valdes. Labor—Jose Estapelia. FFORTS to arrange a truce in the long war between Paraguay and Bolivia over the boundaries in the Gran Chaco area occupied the dele- E Dec. 23 1933 gates to the seventh Pan-American Conference almost to the exclusion of other matters early this week, and the endeavor was successful. The two nations, which have been fighting for 18 months without notable success on either side, agreed early Tuesday to cease hostilities for a period of 11 days, during which feverish negotiations to make the peace permanent are to be carried on. The truce was announced at the Montevideo Conference by Alberto Mane, of Uruguay, who is Chairman of the gathering. Hope was expressed by Senor Mane that a definite peace treaty might be signed before it ends on Dec. 31. It was expected that the Pan-American Conference would end to-morrow, but late reports indicate it may continue for another week if there is a genuine likelihood of the re-establishment of peace between Paraguay and Bolivia. Immediately after the truce was made effective, the belief prevailed in Montevideo that the war would never be resumed. There was less confidence on this point Thursday, however, as the Bolivian representatives were in a belligerent frame of mind. It seems that the Paraguayan forces captured four Bolivian forts in the Gran Chaco just before the armistice became effective, and this angered the Bolivians to such a degree that the peace talks were endangered. They are now continuing, however, and if the truce is lengthened into a permanent peace the present PanAmerican Conference unquestionably will go down in history as the most effective held to date. Most of the nations of the two Americas engaged late last week in an impressive series of declarations of a generally peacable nature. Adherence of the United States to an anti-war declaration offered by Foreign Minister Saavedra Lamas of Argentina was announced by Secretary of State Cordell'Hull. "The people of my country strongly feel," said Mr. Hull, "that the so-called right of conquest must forever be banished from this hemisphere, and most of all they shun and reject this right for themselves." The attempts to arrange an armistice between Bolivia and Paraguay were continued unremittingly over the week-end, and success finally was announced in the small hours of Tuesday morning. Resolutions were offered, Monday, pledging the nations attending the Conference to support the League of Nations in applying sanctions to the combatants. At the insistence of Secretary of State Hull and Senhor Mello Franco of Brazil, a revised motion finally was presented calling upon the American Republics to support, within the limits of their own circumstances and national policies, any plan agreed upon for settling the Chaco war. Under this wording, it was pointed out, the United States and Brazil could refrain from supporting League sanctions, if member States of the League arranged to apply them. The threat of sanctions was effective, and the armistice agreement followed. It is reported in a special cable to the New York "Times" that Mr. Hull played an important part in the arrangements for the truce, as President Gabriel Terra of Uruguay, who undertook the actual negotiations between the belligerents, is said to have engaged in the task on the suggestion of the American Secretary. A number of proposals which were placed before the Conference in its first two weeks were speedily reviewed and approved at a plenary session last Saturday. Secretary Hull's declaration calling upon all American Republics to lower tariffs as soon as feasible and to begin negotiations for bilat. Volume 137 Financial Chronicle eral trade treaties gained the approval of the delegations. An Argentine-Chilean resolution inviting all the governments to adhere to existing anti-war treaties was likewise voted. Arrangements were made to hold the eighth Pan-American Conference in Lima, Peru, and the third Pan-American Financial Conference at Santiago, Chile. The delegates agreed at the same time to submit to the next PanAmerican gathering the question of admitting observers from non-American States or international organizations. Reports on intellectual co-operation, exchange of bibliographic materials and maintenance of historical monuments were adopted without debate. In this session the Conference agreed also to submit to its members a treaty guaranteeing equal nationality rights for women, while a recommendation was adopted for granting equal civil and political rights as well. These actions were sponsored by the Inter-American Comrnission of Women, which met simultaneously at Montevideo. The United States delegation made the startling declaration last Sunday that it wished to dissociate itself from the work of the Women's Commission. Since the United States always has taken the lead in sponsoring equality for women, other delegations at Montevideo were amazed. The confusion on this matter was straightened out on Tuesday, however, when it was announced that the United States would support the equal nationality rights proposal, subject to the approval of the United States Congress. The question of United States intervention in the affairs of Central American and Caribbean republics exercised the Conference spasmodically in the first two weeks. A more pointed discussion was started Monday by the Cuban delegation, which insisted that consideration of its own proposal to outlaw intervention was being avoided. Haitian delegates joined the Cubans in this matter, and a representative of the United States finally agreed to have the whole matter aired. This was done Tuesday, in a meeting of the Committee on International Law. Secretary Hull addressed the gathering and promised categorically that "no government need fear intervention on the part of the United States under the Roosevelt Administration." A report on the rights and duties of States, containing a non-intervention clause, was adopted unanimously. Mr. Hull made the reservation, however, that the policies declared by President Roosevelt in speeches since March 4, and in his own address to the Conference on Dec.15, would be followed pending definition and codification of terms used in the resolution voted upon. In case of doubt, Mr. Hull said, the United States would follow the law of nations as generally recognized and accepted. "Every observing person must thoroughly understand," Mr. Hull declared, "that the United States is opposed to interference with the sovereignty, freedom or internal affairs or processes of the governments of other nations." RECIPROCAL trade treaty between the United States and Colombia, long under negotiation, in Washington on Dec. 15 by Acting signed was Secretary of State William Phillips and Dr. Fabio Lozano, the Colombian Mliiister. This treaty is expected to be only the first in a series of similar agreements to be negotiated by the United States Government with Brazil, Argentina, Sweden, Portugal and other countries. Obviously disappointed A 4407 over the unfortunate end of the World Monetary and Economic Conference in London, Secretary of State Cordell Hull began the discussions on these reciprocal trade treaties immediately after the London Conference ended last July. Details of the first agreement were withheld pending ratification by the legislative bodies of the two countries, but it was indicated in a joint statement that it will be of mutual benefit and will afford a practical example of the policy of "neighborliness" in the Americas. On the part of the United States, the statement said, the agreement provides that certain specified products of Colombia will continue to enjoy exemption from import duties, Federal excise taxes and prohibitions on importations. Colombia, on its part, will reduce its customs duties on speeified products from the United States and will refrain from increasing them on certain other products. It was indicated at the State Department that the draft of a treaty between Brazil and the United States has been prepared and now is receiving study at Rio de Janeiro. Memoranda have been received from Argentina with the same purpose in view, while discussions are progressing with Sweden and Portugal. HE Bank of Finland reduced its discountlrate from 5% to 43/2% effective Dec. 20, the 5% rate having been in effect since Sept. 5, when it was reduced from 51A%. Present rates at the leading centers are shown in the table which follows: T DISCOUNT RATES OF FOREIGN CENTRAL BANKS. Country. Rate in Effect Date Dec.22 Established. PreMous Rate. Austria...-. Belgium_ Bulgaria_ Chile Colombia_ _ Czechoslovaltia___ Danzig.... Denmark.. _ England... Estonia__ Finland__ France. ___ Germany__ Greece 5 334 834 434 4 Mar.23 1933 Jan. 13 1932 May 17 1932 Aug. 23 1932 July 18 1933 8 234 934 534 5 334 4 234 2 534 434 234 4 7 Jan. 25 1933 July 12 1932 Nov 29 1933 June 30 1932 Jan. 29 1932 Dec. 20 1933 Oct. 9 1931 Sept.31 1932 Oct. 13 1933 434 5 3 234 634 5 2 5 734 Vinllantl 9LC Rant 1R 1022 R Country. Rate in Date Effect Dec.22 Established. Previola Rate. Hungary.-- 434 Oct. 17 1932 5 India 334 Feb. 16 1933 4 Ireland.-- 3 June 30 1932 334 3 Dec. 11 1933 334 Italy 3.65 July 3 1933 4.38 Japan Java 434 Aug. 16 1933 5 May 5 1932 734 Lithuania 7 334 May 23 1933 4 Norway 5 Oct. 25 1933 6 Poland _ Portugal— 534 Dec. 8 1933 6 Apr. 7 1933 8 Rumania 6 SouthAtrica 4 Feb. 21 1933 7 6 Oct. 22 1932 534 Spain Sweden... 234 Dec. 1 1933 3 % Switzerland 2 Jan. 22 1931 In London open market discounts for short bills on Friday were 131@1%, as against l% on Friday of last week and 1 3-16@1 Yi% for three months' bills, as against 134©l 3-16% on Friday of last week. Money on call in London yesterday was 4 5 %. At Paris the open market rate remains at 231% and in Switzerland at 13/2%HE Bank of Germany in its statement for the second quarter of December reveals a loss in gold and bullion of 6,685,000 marks. The total of gold is now 391,067,000 and compares with 798,537,000 marks a year ago and 1,002,174,000 marks two years ago. An increase appears in reserve in foreign currency of 3,673,000 marks. in silver and other coin of 19,883,000 marks, in notes on other German banks of 2,876,000 marks, in investments of 19,374,000 marks, in other daily maturing obligations of 10,898,000 marks and in other liabilities of 8,642,000 marks. Notes,in circulation show a contraction of 11,234,000 marks, reducing the total of the item to 3,444,624,000 marks. A year ago circulation stood at 3,400,444,000 marks and two years ago at 4,538,137,000 marks. Bills of exchange and checks, advances and other assets record decreases of 21,895,000 marks, 4,556,000 marks and 4,364,000 marks respectively. The proportion of gold and foreign currency to note circulation stands at 11.6%, T 4408 Financial Chronicle in comparison with 26.9% a year ago. Below we furnish a comparison of the different items for three years: REICEISBANK'S COMPARATIVE STATEMENT. Changes for Wee/c. Dec. 15 1933. Dec. 15 1932. Dec. 15 1931. Assets— Gold and bullion Of which depos. abroad Reserve in foreign curr_ Bills of exch. and checks Silver and other coin_ Notes on other Ger. bks. Advances Investments Other assets Reichsmarks, Reichsmarks. Retchsmarks. Reichsmarks. —6.685,000 391,067,000 798,537,000 1,002.174,000 No change. 50,817,000 40,435.000 126.600.000 +3,673.000 9,517.000 117,587,000 158,355.000 —21,895.0002.981.579.0002.650,060.000 3,792,175,000 +19,883,000 228,735,000 234,334,000 159,855,000 +2,876.000 10,640,000 9,660,000 7,442,000 —4,556,000 71,317,000 110,413,000 222,219,000 +19,374.000 548,374,000 396,506,000 102,892,000 —4,364,000 506,738.000 758,639,000 866,693,000 Liabilities— Notes in circulation_ Other daily matur.oblig. Other liabilities Propor.of gold & foreign curs. to note circurn_ —11,234,000 3,444,624,000 3.400,444,000 4,538,137,000 +10,898,000 425,170,000 354,039,000 434,112,000 +8,642.000 255,016,000 751,827,000 852,225.000 —0.1% 11.6% 26.9% 25.6% HE Bank of England statement for the week ended Dec. 20 shows a gain of £17,849 in gold holdings which brings the total to £191,723,639 as compared with £120,628,031 a year ago. As circulaton expanded £7,972,000, however, reserves fell off £7,955,000. Public deposits rose £5,491,000 while those on other deposits fell off £3,745,686. Of the latter amount, £3,658,883 was from bankers' accounts and £86,803 from other accounts. Proportion of reserve to liabilities dropped sharply to 41.62% from 47.53% the previous week; a year ago it was at only 18.14%. Loans on Government securities rose £8,150,000 and those on other securities £1,577,154. The latter consists of discounts and advances which decreased £31,192 and securities which increased £1,608,346. The rate of discount did not change from 2%. Below we show the figures with comparisons of other years. T BANK OF ENGLAND'S COMPARATIVE STATEMENT. 1933. Dec. 20 1932. Dec. 21 1931. Dec. 23 1930. Dec. 24 1929. Dec. 25 £ £ £ £ £ 389,863,000 370.097,754 370,030,991 379,676,869 379,573,000 Circulation_ a 20,035,000 7,825,512 14,641,211 10,284,679 8,829,000 Public deposits 128,579,188 132.887,023 111,002,963 89,905,608 106.837,470 Other deposits Bankers' accounts_ 91,902.511 98,898,276 72,281,664 56,217,226 71.048.531 Other accounts_ _ _ 36,676,677 33,988.747 38,721,29. 33,688.383 35,788,939 Government secure.... 81.057,692 99,676,824 67,605,906 51,736,247 67,123,855 Other securities.... 23,621.170 33,406,880 49,612,335 37,213,354 40.035,196 8,369,729 11,832,965 13,536,612 14,199,048 22,300,076 Dlsct. & advances_ 15,251,441 21,573,915 36,075,723 23,014,306 17,735,120 Securities Reserve notes & coin 61.860,000 25,530,277 26,322,277 29,144,56326,453.000 Coin and bullion__ _ 191,723,639 120,628,031 121,353,268 148,821,432 146,027,587 Proportion of reserve 20.94% 29.08% 18.14% 41.62% 22.80% to liabilities A .7., Rank rata 2°?.. 2°?.. fi.7., 2.1, Dec. 23 1933 ONDITIONS in the New York money market remained extremely easy this week, notwithstanding the usual fairly heavy demands for funds incident to the holiday season. All requirements were met without a single advance in rates, as there is a huge amount of excess credit available owing to the continued influence of recent open market operations by the Federal Reserve banks. Call loans on the New York Stock Exchange were 1% for all transactions, whether renewals or new loans. In the unofficial counter market, trades were reported every day in call loans at 4 3 and 7 A%. Time loans held to former levels of 1 to 1 for the various maturities, but business in this class of accommodation remained extremely small. An issue of $100,000,000 Treasury discount bills due in 91 days was awarded at competitive sale Monday, with the average rate 0.74%, while an offering yesterday of $100,000,000, the average rate was 0.73%. Brokers' loans against stock and bond collateral declined $7,000,000 in the week to Wednesday night, according to the usual tabulation of the Federal Reserve Bank of New York. C EALING in detail with call loan rates on the Stock Exchange from day to day, 1% remained the ruling quotation all through the week for both new loans and renewals. The market for time money has shown no apparent activity this week. The only business transacted having been occasional renewals. Rates are nominal at 1@134% for 60 and 90 days arid 11 / 1,@13'% for four, five and six months. The market for commercial paper has been extremely quiet this week, though there was some improvement apparent on Friday. Rates are 13.% for extra choice names running from four to six months and 13% for names less known. D HERE have been no changes this week in the rediscount rates of the Federal Reserve banks. The following is tile schedule of rates now in effect for the various classes of paper at the different Reserve banks: T DISCOUNT RATES OF FEDERAL RESERVE BANKS. a On Nov. 29 1928 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. Federal Reserve Bank. Rate In Effect on Dec. 22. Dale Established. Previous Rate. HE Bank of France weekly statement dated Boston 23,6 Nov. 2 1933 3 2 Oct. 20 1933 New York 2;4 Dec. 15 shows a decline in gold holdings of Philadelphia Nov. 16 1933 235 3 Oct. 21 1933 Cleveland 234 3 47,226,733 francs. The Bank's gold which is now Richmond Jan. 25 1932 334 4 Nov. 14 1931 334 3 at 77,031,811,548 francs compares with 83,268,- Atlanta Chicago 234 Oct. 211033 3 June 8 1933 Louis 3)4 864,632 francs last year and 68,063,696,256 francs the St. Sept. 12 1930 Minneapolis 334 4 Oct. 23 1931 previous year. Bills bought abroad, advances Kansas City 334 3 Jan. 28 1932 4 Dallas 334 against securities and creditor current accounts record San Francisco Nov. 3 1933 234 3 increases of 1,000,000 francs, 12,000,000 francs and 278,000,000 francs, while French commercial bills HE market for prime bankers' acceptances has discounted reveal a loss of 412,000,000 francs. Notes quited down this week, due largely to the nearof 700,000,000 contraction francs in circulation show a reducing the total of notes outstanding to 80,205,- ness of the Christmas holidays. The supply of paper 154,060 francs. Circulation a year ago was 82,035,- however, shows a substantial increase, R,ates are 273,185 francs and two years ago 82,527,138,735 unchanged. Quotations of the American Acceptance francs. The proportion of gold on hand to sight 3 % Council for bills up to and including 90 days are 4 liabilities stands now at 79.41%, in comparison with for three asked; and four N% months,% and bid 78.16% a year ago. Below we furnish a comparison bid and Yi% asked; for five and six months, 1% bid of the various items for three years: and 78% asked. The bill buying rate of the New BANK OF FRANCE'S COMPARATIVE STATEMENT. for bills running from 1 York Reserve Bank is Changes Dec. 15 1933. Dec. 16 1932. Dec. 18 1931. for Week. proportionately higher for longer madays, and 90 to Francs. Francs. Francs. Francs. Reserve banks' holdings of Federal The turities. Gold holdings _47,226,733 77,031,811,548 83,268,864,632 68,063,696,256 Credit bals. abroad_ No change. 37,250,319 3,104,798,317 15,335,442,054 during the week from $116,decreased acceptances a French commercial bills discounted —412,000,000 3,418,612,284 2.538.203.715 6.386,407,364 Their holdings of accept$113,375,000. to 9,188,811,871 158,000 1,804.747,773 Bills bought abr'd b +1,000.000 1,156,888.792 +12,000,000 2,911,767,704 2,571,138,123 2,795,080.072 Adv. against secure. ances for foreign correspondents, however, increased Note circulation_ __ _ —700,000,000 80,205,154,060 82,035,273,165 82,527,138,735 Cred. curr. accts--. +278,000.000 16,797,291,565 24,505,792,988 30,532,359,719 from $2,894,000 to $3,659,000. Open market rates Propor'n of gold on 60.20% 79.41% +0.29 78.16% hand to sight llab_ acceptances are as follows: for a Includes bills purchased In France. b Includes bills discounted abroad. T T Volume 137 Financial Chronicle SPOT DELIVERY. -180 Days-- -150 Days- -120 DaysBid. Asked. Bid. Asked. Bid. Asked. Prime eligible bills 1 1 4 14 -90Days- -80Days- -30Days Bid. Asked. Bid. Asked. Bid. Asked. Prime eligible bills 5,f 5•1 54 FOR DELIVERY WITHIN THIRTY DAYS. Eligible member banks 1% bid Eligible non-member banks 1% bid TERLING exchange and the United States dollar S have been steadier this week. Fluctuations have been within narrower limits. The range this week has been between 5.0734 and 5.173/i for bankers' sight bills, compared with a range of between 5.029 and 5.17 last week. The range for cable transfers has been between 5.073/2 and 5.1734, compared with a range of between 5.03 and 5.173/ a week ago. There is nothing essentially new in the foreign exchange situation. The greater steadiness in sterling is largely due to an unusual steadiness in the London gold price and to an improved relation between sterling and the French franc. This condition is reflected in the London check rate on Paris. Sterling has been in considerable demand in many quarters owing to year-end requirements of commercial interests desiring to make final settlements in London. The French franc was also under a similar influence, which offset in large measure the great demand for sterling exchange by European countries operating through Paris. In like measure foreign exchange bankers reported a year-end heavy demand for dollars in Paris and London for the final settlement of accounts due United States merchants. Doubtless the steadiness of the Reconstruction Finance Corporation gold purchasing price has also been a factor contributing, to the present steadiness of the dollar. The price of domestic mined gold continued unaltered for 14 days at $34.01 per fine ounce from Dec. 1 to Dec. 16, inclusive, when it was lifted five cents to $34.06 on Dec. 18, which price has not been changed to date. The entire interest of the foreign exchange market is centered on the probable course of the dollar. The following tables give the London check rate on Paris from day to day, the mean gold quotation for the United States dollar in Paris, the London open market gold price, and the price paid for gold by the United States (Reconstruction Finance Corporation): MEAN LONDON CHECK RATE ON PARIS. Saturday Dec. 16 83.432 Wednesday Dec. 20 83.59 Monday Dec. 18 83.25 Thursday Dec. 21 83.69 Tuesday Dec. 19 83.32 Friday Dec. 22 83.50 MEAN GOLD QUOTATION U. S. DOLLAR IN PARIS. Saturday Dec. 19 83.8 Wednesday Dec. 20 64.6 Monday Dec. 18 63.2 Thursday Dec. 21 64.4 Tuesday Dec. 19 63.5 Friday Dec. 22 84.0 LONDON OPEN MARKET GOLD PRICE. Saturday Dec. 16 128s. 4d. Wednesday Dec. 20 126s. 9d. Monday Dec. 18 1288. 9d. Thursday Dec. 21 1268. 2d. Tuesday Dec. 19 1268. 9d. Friday Dec. 22 1288. 3d. PRICE PAID FOR GOLD BY UNITED STATES(RECONSTRUCTION FINANCE CORPORATION). Saturday Dec. 16 34.01 Wednesday Dec. 20 34.06 Monday Dec. 18 34.08 Thursday Dec. 21 34.08 Tuesday Dec. 19 34.08 Friday Dec. 22 34.08 Detailed accounts of the President's proclamation ordering the purchase of silver will be found in other columns of this issue. It is customary for all foreign exchanges to be somewhat active just before the Christmas holidays owing to year-end settlements. Usually, especially in the European countries, there is a marked lull in business between Christmas and the New Year. In New York the market will be closed only on Monday, 4409 but in London and the European centers the markets will be closed on Monday and Tuesday, and in some of the European cities there will be virtually a complete cessation of business until after the New Year. The foreign exchange market considers that the dollar is essentially stronger than current quotations would indicate. Nevertheless operators fear to take a technical position on the up side, in the belief that the forthcoming debates in Congress in January may alter the entire situation. Were it not for the action of the Washington authorities on gold purchases and the intermittent blasts of inflationist agitation, the entire foreign exchange market would be bidding up the dollar. The market, especially in London and Paris, is inclined to regard the American gold purchases abroad as of little effect. On Thursday the Reconstruction Finance Corporation announced that it had allocated another $25,000000 for gold purchases at home and abroad, bringing the total set aside for this purpose to $100,000,000. Of this amount it was indicated that over $60,000,000 had been used, $16,976,000 for 507,485 ounces of newly mined domestic gold and about $45,000,000 for foreign purchases. It is doubtful if the London purchases were made directly in the open market by official agents. It seems probable that banks in London commissioned to purchase for the RFC account bought the gold from individuals or banks which had already purchased in the open market and had the gold stored in the vaults of London banks. Through such a method the Washington authorities could easily manage to guard their operations with secrecy. It is doubtful if official London will pay any attention to American gold purchases unless the American authorities are successful in forcing the dollar much lower, or to a point where the dumping of American goods might be injurious to British trade. Thus far the depression of the dollar has proved a boon to Great Britain in so much as it has enabled the Lancashire cotton manufacturers to satisfy their inventory requirements of American cotton at a low figure. The cotton-buying operations came to an end several weeks ago and no British manufacturing interests have been injured by the depreciation of the dollar. Should British manufacturing interests be threatened in any way, Great Britain would doubtless resort to some form of tariff and apply anti-dumping measures, which the Board of Trade is already empowered to do, so that no Parliamentary debate would be necessary. The best London opinion is that the American gold purchases will be allowed free scope for the present and London banking interests are eagerly awaiting the forthcoming debates in Congress. There seems to be no prospect of immediate stabilization of the pound at any figure, and in the immediate future there is surely no possibility that the pound will be devalued lower than $4. On the contrary it is almost certain that the pound will contain just as many grains of fine gold upon stabilization as it contained before abandonment of the gold standard in September 1931. London openmarket money rates show a slight tendency to harden, but this is due to year-end shifting of funds and the pre-holiday settlements. Call money against bills is in supply at 34% to 4 3 %. Two-months' bills are 138% to 13/2%, compared with 13i% to 1 3-16% last week. Three-months' bills are at 1 3-16% to 134%; four-months' bills are 134%,and six-months' bills are 1 5-16%, compared with 134% a week ago. 4410 Financial Chronicle Gold continues to flow to the London open market from many quarters of the world, and is generally acquired for Continental account either by private hoarders or by foreign central banks. The League of Nations in a report on the international trade accounts of 52 countries, recently published, shows that gold has been flowing from countries still on the gold standard to those which have abandoned it. "The gold and foreign currency reserves of countries with depreciated currencies increased during the past nine months of this year by more than $500,000,000, while the reserves of the gold group fell by a similar amount." England is one of the countries off the gold standard, but it can be safely assumed that while France has lost considerable gold to countries off the gold standard, most of the above amount quoted by the League of Nations reached the other countries through London open market purchases. On Saturday last approximately £640,000 in bar gold available in the London open market was taken for 2d. On an unknown destination at a premium of 63/ Monday £640,000 was similarly taken at a premium of 8d. On Tuesday £680,000 was taken for an unknown destination at a premium of 6d. On Wednesday £580,000 was taken for an unknown destination at a premium of 8d. On Thursday £580,000 was 2d. On Friday £500,000 taken at a premium of 43/ was taken for an unknown destination at a premium of 7d. On Thursday the Bank of England bought to £2,260 of bar gold. The Bank of England statement for the week ended December 20 shows an increase in gold holdings of £17,849, the total standing at £191,723,639 which compares with £120,628,031 a year ago, and with £150,000,000 recommended by the Cunliffe committee. Owing largely to the fact that the Bank has increased its gold holdings throughout the past year by £65,095,000, its proportion of reserves to liabilities is now 41.62%, compared with 18.14% last year. At the Port of New York, the gold movement for the week ended Dec. 20, as reported by the Federal Reserve Bank of New York, consisted of exports of $8,980,000, of which $8,776,000 was shipped to Switzerland, $199,000 to France, and $5,000 to Guatemala. The Reserve Bank reported a decrease of $8,975,000 in gold earmarked for foreign account. In tabular form the gold movement at the Port of New York for the week ended Dec. 20, as reported by the Federal Reserve Bank of New York, was as follows: GOLD MOVEMENT AT NEW YORK, DEC. 14—DEC. 20 INCL. Exports. Imports. $8,776,000 to Switzerland. None. 199,000 to France. 5,000 to Guatemala. $8,980,000 total Net Change in Gold Earmarked for Foreign Account. Decrease: $8,975,000. Exports of Gold Recovered from Natural Deposits. None. The above figures are for the week ended Wednesday evening. On Thursday and Friday there were no imports or exports of the metal or change in gold earmarked for foreign account. There have been no reports during the week of gold having been received at any of the Pacific ports. Canadian exchange continues at a slight premium. On Saturday last, Montreal funds were at a premium of %,on Monday at a premium of %,on Tuesday at a premium of %, on Wednesday at a premium of %%, on Thursday at from par to a premium of N%, and on Friday at M% premium. Dec. 23 1933 Referring to day to day rates, sterling exchange on Saturday last was steady in dull trading. Bankers' sight was $5.119/ 8@$5.13%; cable transfers $5.113/2® 85.13%. On Monday the pound was firm. The range was $5.13 @$5.173/ for bankers' sight and $5.13@$5.173 for cable transfers. On Tuesday sterling was easier. Bankers' sight was $5.13@ $5.15%; cable transfers $5.133,1(05.15%. On Wednesday London went off sharply. The range was %@$5.123/ $5.08@$5.12 for bankers' sight and $5.083 for cable transfers. On Thursday sterling was easy as the dollar retained its strength. The range was $5.073@$5.09% for bankers' sight and $5.073/2@ $5.093' for cable transfers. On Friday sterling was firmer; the range was $5.09@$5.113/ for bankers' sight and $5.099@$5.12 for cable transfers. Closing quotations on Friday were $5.10 for demand and $5.103' for cable transfers. Commercial sight bills finished at $5.093/ 2; 60-day bills at $5.093/2; 90-day bills at $5.0932; document for payment (60 days) at $5.093, arid seven-day grain bills at $5.10. Cotton and grain for payment closed at $5.093/ 2. XCHANGE on the Continental countries conE tinues excessively firm in terms of dollars. The French franc shows a greatly improved outlook. The Bank of France statement for the week ended Dec. 15 reported a decrease in gold holdings of only fr. 47,226,733 (about $1,881,000 at par). This compares with a decrease of fr. 293,574,567 last week, with a loss of fr. 449,806,576 two weeks ago, and with a loss of fr. 1,460,487,736 a week earlier. The gold drain on Paris seems to have come to an end. This is due in part, it is believed, to a working agreement effected between the British and French authorities a few weeks ago, but it is also due to the fact that the currencies of all the neighboring countries have fallen below the points for gold from Paris on an exchange basis. The Bank of France has weathered a severe storm since Sept. 1, involving a steady loss of gold from week to week, which totaled fr. 5,246,116,853, or about $205,600,000 at par. Nevertheless the position of the Bank of France continues almost as satisfactory on Dec. 15 as it was on Sept. 1, as the present ratio between its gold reserves and total sight liabilities stands at 79.41%, compared with 79.12% a week ago, with 79.61% on Sept. 1, with 78.16% a year ago, and with legal requirement of 35%. In face of the gold drain since Sept. 1 the Bank of France maintained its ratio through a steady reduction in its sight liabilities. Its total sight liabilities on Sept. 1 amounted to fr. 103,350,929,653, which were reduced by fr. 6,348,484,025 to fr. 97,002,445,625 on Dec. 15. There is almost a complete lack of public demand for gold for hoarding in France, and there is no longer so much expectation in Europe of the possibility that France may abandon the gold standard or adopt any form of devaluation or inflation. Italian lire are firm in terms of dollars, but the lira, like the Swiss franc, the belga and the guilder has been showing considerable ease with respect to Paris, so much that lire have been receiving official support in the Paris market. German marks are quoted high with respect to the dollar, but the rate is practically nominal. The strength in the mark is the result of the recent announcement of a reduction of transfers on foreign debts for the coming six months. Finnish exchange is one, of the inactive units in the New York market, but interest attaches Volume 137 Financial Chronicle to the markka at present owing to the fact that on Tuesday the Bank of Finland reduced its discount rate to 432% from 5%, effective Dec. 20. The 5% rate had been in effect since Sept. 5 1933, when it was reduced from 53/2%. The London check rate on Paris closed on Friday at 83.47, against 83.45 on Friday of last week. In New York sight bills on the French center finished on Friday at 6.113j, against 6.101A on Friday of last week; cable transfers at 6.113 4, against 6.11, and commercial sight bills at 6.11, against 6.103. Antwerp belgas finished at 21.74 for bankers' sight bills and at 21.75 for cable transfers, against 21.68 and 21.69. Final quotations for Berlin marks were 37.30 for bankers' sight bills and 37.31 for cable transfers, in comparison with 37.34 and 37.35. Italian lire closed at 8.203/ for bankers' sight bills and at 8.21 for cable transfers, against 8.213/ and 8.22. Austrian schillings closed at 17.60, against / 2, 17.60; exchange on Czechoslovakia at 4.641 against 4.64; on Bucharest at 0.94, against 0.95; on Poland at 17.62, against 17.63, and on Finland at 2.29, against 2.293'. Greek exchange closed at 0.87M for bankers' sight bills and at 0.88 for cable transfers, against 0.883' and 0.89. 4411 quoted 93 4, against 93 4. Peru is nominal at 22% against 223. XCHANGE on the Far Eastern countries is E extremely limited, as these units suffer by reason of the general demoralization of all the foreign exchanges in consequence of the unsatisfactory conditions surrounding sterling and the United States dollar. Quotations are highly nominal. This is especially true of Japanese yen, as Japanese foreign trade and foreign exchange operations are under the strictest control. The Indian rupee fluctuates with the pound sterling, to which it is attached at the fixed ratio of is. 6d. per rupee. President Roosevelt's announcement on silver which makes the United States price 643/ cents an ounce, or 213' cents above Thursday's price, will doubtless have an important effect on the Far Eastern exchanges. In some quarters it is thought that the American action will not have a great effect on the world price of silver for some time to come. Closing quotations for yen checks yesterday were 30.85, against 30% on Friday of last week. Hong Kong closed at 383,@38 5-16, against 37 11-16@ 3 37%; Shanghai at 34%@34%, against 33% @33 11-16; Manila at 503/2, against 503'; Singapore XCHANGE on the countries neutral during the at 60, against 60; Bombay at 383', against 38%, war presents no new features of importance. and Calcutta at 383/ 2, against 38%. Trading in the neutral currencies is exceedingly thin. Holland guilders and Swiss francs are quoted firm to the requirements of Section 522 with respect to the dollar, but both these currencies of the Tariff Act of 1922, the Federal Reserve have receded from the French franc, so that gold is Bank is now certifying daily to the Secretary of the no longer drawn from Paris to the Dutch and Swiss Treasury the buying rate for cable transfers in the centers. The Scandinavian currencies of course different countries of the world. We give below a fluctuate with the pound sterling, to which they are record for the week just passed: allied. FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE Bankers' sight on Amsterdam finished on Friday BANKS TO TREASURY UNDER TARIFF ACT OF 1922. DEC. 16 1933 TO DEC. 22 1933, INCLUSIVE. at 62.74, against 62.80 on Friday of last week; cable transfers at 62.75, against 62.81, and commercial Noon Buying Rate for Cable Transfers in New York. Value in United States Money. Monetary sight bills at 62.65, against 62.71. Swiss francs Country and Unit. Dec. 16. I Dec. 18. Dec. 19. Dec. 20. Dec. 21. Dec. 22. closed at 30.19 for checks and at 30.20 for cable EUROPE.-$ $ $ $ $ $ transfers, against 30.19 and 30.20. Copenhagen Austria,schilling .176850 .178100 .178125 .176750 .175875 .176600 Belgium, belga .217925 .219430 .218592 .215863 .216133 .217000 ley 013600* .013633 .013666 .013600 .013500 .013325 checks finished at 22.82 and cable transfers at 22.83 Bulgaria, Czechoslovakia, kron .046585 .046937 .046685 .046200 .046181 .046431 Denmark, krone 228458 .229633 .229218 .227309 .227345 .228180 against 22.84 and 22.85. Checks on Sweden closed England, pound sterling 5.119583 5.145666 5.135416 5.090083 5.088666 5.109250 at 26.35 and cable transfers at 26.36, against 26.39 Finland. markka .022650 .022850 .022883 .022450 .022566 .022740 franc 061390 .061896 .061611 .060751 .060838 .061228 and 26.40; while checks on Norway finished at 25.66 France, Germany, reichsmark .374253 .377292 .375141 .370940 .370707 .373192 Greece, drachma 008875 .008905 .008885 .008829 .00877.5 .008860 and cable transfers at 25.67, against 25.74 and Holland, guilder .630038 .635100 .631392 .622809 .624058 .627938 Hungary, pengo 278000 .278500 .279333 .277333 .275333 .275000 25.75. Spanish pesetas closed at 12.80 for bankers' Italy, lira .082425 .083133 .082732 .081465 .081503 .082042 Norway, krone 257181 .258530 .258050 .255990 .255809 .256733 sight bills and at 12.81 for cable transfers, against Poland,zloty .177416 .178300 .177100 .176600 .176000 .176720 Portugal, escudo .047007 .047158 .047006 .046839 .046845 .046593 12.79 and 12.80. Rumania,leu .009460 .009550 .009400 .009433 .009400 .009800 E pURSUANT Spain, peseta .128192 .129227 .128715 .127092 .127335 .128014 Sweden,krona .264032 .265166 .264808 .262910 .262409 .263654 Switzerland, franc .303338 .305781 .303961 .300150 .300184 .302053 Yugoslavia, dinar__._ .021741 .021825 .021762 .021600 .021400 .621610 ASIAChinaChefoo (yuan) dol'r .332291 .333750 .334166 .331666 .327916 .339583 Hankow(yuan) dol'r .332291 .333750 .334166 .331666 .327916 .339583 Shanghai(yuan)dorr .332656 .332906 .335468 .332343 .328437 .340000 Tientsln(yuan) dol'r .332291 .333750 .334166 .331666 .327916 .339583 Hongkong dollar .370000 .370937 .372500 .368750 .366250 .376875 India, rupee .383062 .386000 .386420 .383450 .381960 .383200 Japan, yen .307343 .309375 .309550 .306900 .305750 .307625 Singapore (8.5.) dol'r_ .596875 .598750 .598750 .595625 .592500 .595000 AUSTRALASIAAustralia, pound 4.071666 4.093333 4.088750 4.049583 4.053333 4.066666 New Zealand, pound_ 4.084166 4.105000 4.100833 4.062083 4.065833 4.079166 AFRICASouth Africa, pound 5.062500 5.085625 5.077500 5.031875 5.030628 5.053750 NORTH AMER.Canada, dollar 1.004270 1.005750 1.004010 .000989 1.000364 1.001406 Cuba, peso .999550 .999550 .999550 .999800 .999550 .999687 Mexico, peso (silver)_ .277160 .277260 .277360 .277360 .277360 .277360 Newfoundland. dollar 1.001875 1.003281 1.001500 .998750 .997750 .999000 SOUTH AMER.Argentina, peso 334125" .336675* .336000* .334133* .331050* .332300" Brazil, milreLs 086106* .086350* .086912* .086471* .085975" .086037" Chile, peso 095500* .097100* .096125* .095300* .095250* .095500" Uruguay, peso 748333* .754200* .750000* .744300* .741700* .746266' Colombia. peso 625000" .632900" .64.5100* .645100* .645100* .645100" XCHANGE on the South American countries continues under the strict control of Government regulating boards. Private advices to the Bank of London and South America from Buenos Aires on Tuesday stated that the Argentine Government has canceled taxes on private remittances abroad, which heretofore had amounted to 5% and 10%. All private remittances in future will be effected in the free market, it was stated. In addition, exporters of various minor products such as wine and sugar will be permitted to sell their foreign exchange in the free market in order to encourage larger exports of these products. Argentine paper pesos closed on Friday nominally •Nominal rates;firm rates not available. at 33.20 for bankers' sight bills, against 33.60 on Friday of last week; cable transfers at 333, against HE following table indicates the amount of gold 33.65. Brazilian milreis are nominally quoted 83 bullion in the principal European banks as of for bankers' sight bills and 89 for cable transfers, Dec. 21 1933, together with comparisons as of the 4. Chilean exchange is nominally corresponding dates in the previous four years: against 83' and 83 E T 4412 Financial Chronicle Banks of— 1933. 1932. England.-France a __ Germany b Spain Italy Nethlands_ Nat.Delg Switzland. Sweden Denmark Norway £ 191,723,639 618,254,492 17,012,500 90,441.000 76.595,000 76,685.000 77,898,000 61,710,000 14,386,000 7.397,000 6,572,000 £ 120,628,031 666,110,917 37,030,650 90,333,000 62,947.000 86,049,000 73,844,000 89,056,000 11,443,000 7,399,000 8,014,000 1931. £ 121,353,268 544,509,570 43,611,150 89.875,000 60.848,000 75,583,000 73,053,000 60,964,000 11,433,000 8.015,000 6.559,000 1930. £ 151,316,227 426,267.680 99,694,950 97,494.000 57,243.000 35,516,000 37,072,000 25,620,000 13,401.000 9,560,000 8.136,000 1929. £ 140,027.587 331.099,468 105,738,800 102,598,000 58,120.000 37,290,000 32,093.000 22,449,000 13,331,000 9,581,000 8,149,000 Totalweek_ 1,236,674,631 1,252,854,598 1,095,803,988 Prev.week 1 22R R:10 0411 1 272 072 179 1 007 227 720 961,320,857 864,474,855 5150 212 857 858.494.217 a These are the gold holdings of the Sank of France as reported in the new form of statement. b Gold holdings of the Bank of Germany are exclusive of gold held abroad, the amount of which the present year is £2.540,850. The Pan-American Conference and American Intervention. The statement which Secretary Hull made on Tuesday, at the Pan-American Conference at Montevideo, regarding American policy toward Latin America marks the beginning, as far as an official declaration can do so, of a new period in the history of the relations of the United States with its southern neighbors. The immediate occasion was the presentation, for adoption by the Conference, of a report of the committee on international law covering eleven points and dealing in the main with the recognition of States and intervention in their affairs. Article I of the report (we quote from a summary in a Montevideo dispatch of Tuesday to the New York "Times") declared that a State, in order to be recognized, should have, among other things, "a government with capacity to enter into relations with other States." Article 6 added the provision that "recognition shall be unconditional and irrevocable, and shall merely signify acceptance of the State's personality with all rights and duties," while Article 7 provided that "recognition may be express or tacit, resulting from any act implying intention to recognize." The eighth Article, which formed the particular text for Secretary Hull's state. ment, read that "no State shall have the right to intervene in the affairs of another." Article 10 laid down that "the prime interest of States shall be the conservation of peace" and that "differences must always be regulated by recognized pacific means," while Article 11 declared that "States shall obligate themselves not to recognize territorial acquisitions or advantages gained by force, and the territory of States shall be inviolable and not subject to military occupation or other compulsion, even temporary." The vote of the American delegation, according to an announcement given out by the Department of State on Wednesday, approved the first ten articles of the committee report with such reservations as were embodied in the address which Secretary Hull had just delivered and which the Conference had received with enthusiasm. "The policy and attitude of the United States Government toward every important phase of international relationships in this hemisphere," Secretary Hull said, "could scarcely be made more clear and definite than they have been made by both word and action, especially since March 4. . . . Every observing person must by this time thoroughly understand that under the Roosevelt Administration the United States Government is as much opposed as any other Government to interference with the freedom, the sovereignty or other internal affairs or processes of the governments of other nations. . . . I feel safe in undertaking to say that, under our support of the general principle of non-intervention as has been suggested, no Government need fear any intervention on the Dec. 23 1933 part of the United States under the Roosevelt Administration." It was "probably unfortunate," he added, that time was too short for the preparation of "interpretations and definitions of these fundamental terms that are embraced in the report," but "in the meantime,in case of differences of interpretations, and also until they can be worked out and codified for the common use of every Government, I desire to say that the United States Government, in all of its international associations and relationships and conduct, will follow scrupulously the doctrines and policies which it has pursued since March 4" as embodied in various addresses by President Roosevelt, in the address on peace which Secretary Hull himself delivered at the Conference on Dec. 15,"and in the law of nations as generally recognized and accepted." The reservation which was made regarding Article 11 was presumably due to the obligation imposed upon the United States by the treaty of 1923, binding ,the United States and several Central American countries not to recognize any Government that was set up as a result of revolution. Secretary Hull may also have wished to avoid committing the Roosevelt Administration against the so-called Stimson doctrine, which declared, with special reference to the new State of Manchukuo,that political or territorial changes achieved in contravention of treaties would not be recognized by the United States. Secretary Hull had already spoken at some length on another occasion regarding the international policy of the Administration. In a speech on Dec. 15, in support of a resolution calling for the immediate signature of five peace treaties, he referred to the policy of "the good neighbor" as one which, he felt sure, every American nation wholeheartedly' supported. The American Government, he said, "is doing its utmost, with due regard to the commitments made in the past, to end with all possible speed engagements which have been set up by previous circumstances. There are some engagements which can be removed more speedily than others. In some instances disentanglement from obligations of another era can only be brought- about through the exercise of some patience. . . . The people of my country strongly feel that the so-called right of conquest must forever be banished from this hemisphere, and most of all they shun and reject that so-called right for themselves." Such declarations of policy, while couched in general terms and hedged about with reservations, are nevertheless likely to have considerable effect upon opinion in Latin American countries toward the United States. They do not, of course, dispose in advance of every controversy or offer an immediate solution of each particular problem. The difficult situation in Cuba, for example, is not to be dealt with merely by resort to general declarations about intervention and recognition; it is still necessary to determine whether Cuba has a Government sufficiently acceptable to its people to warrant recognition. Presumably, also, Secretary Hull did not intend to pledge the United States not to take measures for the protection of its citizens if adequate protection obviously could not be afforded by the Government in whose territory they were. It seems fair to conclude, however, after what Secretary Hull has said, that not only will there be under President Roosevelt no disastrous episodes such as Nicaragua, but that the right of intervention in Cuba which Volume 137 Financial Chronicle exists under the Platt amendment will be dropped as soon as a way can be found to get rid of it. Such popular interpretations of the Monroe Doctrine as would make the United States a guardian and judge of all kinds of Central and South American interests find no countenance in Secretary Hull's pronouncements. In the view of the Administration, the Latin American countries are evidently regarded as entirely competent to take care of themselves. The cordial expressions which were evoked by Secretary Hull's declarations came near the end of a Conference which has been marked from the first by unusual friendliness for the United States. An estimate of the work of the Conference must be deferred until all its business has been disposed of, but something may here be said of the more important questions it has considered. The efforts of the Cuban delegation to inject the Cuban imbroglio into the prOceedings was fortunately sidetracked, and the issue left to the course of events (which unhappily has not yet brought a settlement) and the declarations of principle to which reference has already been made. A proposal from Argentina of a PanAmerican economic and commercial conference wa favorably reported by a committee, but an elaborate plan for an international bank to be located at Buenos Aires found no important support. American opposition to the admission as observers of representatives of the League of Nations who were endeavoring to adjust the Chaco controversy between Bolivia and Paraguay was withdrawn when the presence of observers was limited to the public sessions. The Chaco situation was prominent from the opening of the Conference, and the arrangement for an armistice on Tuesday, following important victories by Paraguayan forces, was hailed with great satisfaction, but subsequent events have left some doubt whether a truce was actually being maintained. It was reported, however, that the United States would not approve any attempt by the League to impose sanctions upon the belligerents. On Dec. 12 Secretary Hull submitted to the Conference a long resolution calling upon the nations represented in the Conference to lower their tariffs "through the negotiation of comprehensive bilateral reciprocity treaties based upon mutual concessions." The "greatest efforts" of the Governments concerned were to be directed to "the elimination of those duties and restrictions which completely or almost completely exclude international competition, such as those which restrict the importation of particular commodities to less than 3% to 5% of domestic consumption, also protective duties or restrictions which have been in effect for a considerable period of time without having brought about domestic production equal to 15% of the total domestic consumption thereof." The resolution proposed the creation of a "permanent international agency" to observe the progress of the contemplated program, and invited the World Monetary and Economic Conference, "now in recess," to co-operate promptly in bringing the proposal to a successful conclusion. The proposal was accepted by the Conference on Dec. 16 with some reservations by Paraguay and El Salvador. A short but lively controversy over a treaty according equal nationality rights to women, in which the American delegation was found in opposition, was closed by President Roosevelt, who directed that the treaty be accepted with the reservation that Congressional approval must be obtained. 4413 The question of the League has several times intruded itself upon the Conference, and there have been disturbing suggestions of something like formal co-operation between the two bodies. It is to •be hoped, in the interest of the Conference, that the suggestions will not be pushed. The success of the Pan-American Conference thus far has been due primarily to the limitation of its discussions to the joint interests of North and South American States, and to the cultivation of good understanding as a basis for friendly relations. The Conference has no political foundation, and its recommendations, while weighty, require the approval of the Governments represented. Its usefulness as a forum in which to formulate joint opinions is manifest in the declaration of policy made by Secretary Hull and the peace treaties that have been prepared, but its influence would be weakened if it mixed in European concerns. The Conference should remain what it has always ben(a purely international American institution. \ jecting to Guaranteeing Deposits of Other Institutions Girard Trust Co. of Philadelphia May Retire from Federal Reserve System. Strenuous objection to the insurance of deposits as provided in the Federal Banking Act of 1933 is made by the management of the Girard Trust Company of Philadelphia, an institution which is approaching the century mark, it having been organized in 1836. During its career of 97 years the Girard has weathered every trying period in war and in peace, adding to its assets until they amount to $105,268,726, the capital now being $4,000,000, surplus $9,000,000, and undivided profits $1,357,789, the total deposits aggregating over $86,500,000. The conservative policy of the company is indicated by the fact that the banking house which is assessed for taxation at $4,264,000 is carried on the books at $2,415,386. The annual dividend rate is 40%. The above facts are presented to show how well the trust company stands in its own community in order that the value of its expressed opinions may be duly weighed. The report states: "The Federal Banking Act of 1933 directed the formation of a corporation for the insurance of bank deposits with a forerunner of a temporary organization which every member of the Federal Reserve System must join. The life of the temporary Fund so constituted is to be from January 1st to July 1st 1934. Its purpose is to insure to the extent of $2,500 each depositor in every member bank of the Federal Reserve System, and in every non-member bank admitted to the benefits of the Fund. "Your company may be called upon to pay into this temporary Fund amounts aggregating a maximum of 1% of the insurable balances of its depositors, and it must pay one-quarter of this 1% at the inception of the Fund on or before January 1 1934. A further one-quarter will be payable as called for during the six months' period, and the balance if needed to meet the requirements of the Fund. By July 1 1934, the Fund is to be dissolved and any balance remaining is to be repaid pro rata to the members. It will be remembered that in 1917 your company led the way as the first trust company in Philadelphia to join in the extension then thought desirable of the Federal Reserve System, and so long as its membership in that system continues your company is bound by all the provisions of the Banking Act. "On July 1 1934, however, a different situation will exist when there becomes operative the perma- 4414 Financial Chronicle nent corporation to insure all deposits, the first $10,000 balance in full, the next $40,000 to 75% and any balance over $50,000 as to one-half of it. "Each member of the Federal Reserve System must purchase stock in the Insuring Corporation to an amount equal to one-half of 1% of all moneys on deposit with it, of which half (or one-quarter of 1%), must be paid in on July 1 1934, and the Corporation may make further calls. "The obligation to meet unlimited assessments for the insuring of deposits in other institutions, although your company becomes itself one of the insured, is a serious one; and as it will be impossible to gauge the extent of the continuing liability the shareholders should be advised of the situation. Unless there be remedial legislation by the Congress it will be necessary before the coming July for your Board of Managers to determine what course shall be pursued in the above alternatives of risking the funds of its shareholders and depositors for the insuring of institutions throughout the country and entirely beyond its control, or of withdrawing from the Federal Reserve System—a step that your Board of Managers would be loath to contemplate." The report is signed by Albert A. Jackson as President and by Effingham B. Morris as Chairman. Mr. Morris was long President of the trust company which made great strides under his management. He also is Chairman of the Pennsylvania Railroad Company. The exact amount which this company or any similar bank would be required to pay into the insurance fund cannot be definitely determined in advance because individual accounts fluctuate from month to month, but the total of deposits.is so great that even one-half of 1% would amount to $432,500 on the aggregate—which gives an approximate idea of the enforced levy upon the assets of such a large ititution which is typical of many others in the lar,e ities of the country. Dec. 23 1933 matter. The book presents for the first time a complete history of each section of the General Corporation Law of Delaware and sets forth the various forms in which such sections have been in effect thoughout the existence of the Law. All cases pertaining to business corporations, which have been decided in the Courts of Delaware,are cited and,in many cases digested. This should prove of considerable value inasmuch as heretofore, in annotating the General Corporation Law, it has been the practice to include only decisions subsequent to the enactment of the Corporation Law of 1899 and a few of the cases on corporation law decided by the Delaware courts prior thereto. Several important prior cases have never appeared in any work on Delaware corporations. Executives, lawyers, attorneys, and other persons interested, who do not have at hand a complete set of the Delaware Session Laws should find this book to be an unusual aid. The Course of the Bond Market. Bonds lost as much ground this week as they gained last week, according to the general averages. Utilities and rails, particularly the former, accounted for the decline. On Friday,following the President's silver proclamation, the course of corporation bond prices was mixed and U. S. Government bonds, which had been fairly stable up to Thursday, lost about 34 point on the average. The new silver-buying program, announced Thursday night, authorizes the Government in effect to buy all newlymined domestic silver at 64X cents an ounce,for four years. As an inflationary measure, it is relatively mild, but of importance to the gilt edge bond market is the fact that this new development is but one of a whole series of steps which, cumulatively, are designed to cheapen our currency in terms of commodities. The full effect of the silver policy on high grade bonds still remains to be seen. For the moment, it does not seem to have been very strong. Dollar quotations abroad were little changed. Short term interest rates were again slightly firmer. The Federal Reserve banks discontinued this week their seasonal purchases of bills in the open market. Price changes for railroad bonds were mixed but declines outnumbered advances. In the high grade group changes were for the most part limited to fractions. Pennsylvania 4 1960, advanced from 103 to 1033/8, Union Pacific 4s, 1947, declined from 997/i to 993 4 and Northern Pacific 48 1997, 815 from %. Declines registered in were down to 823/s World Gold and Silver Production the medium and low grade issues included Wabash 5s, 1939, The world production of gold and silver and the ratios of from 54 to 50, Southern Pacific 43's, 1968, from 5432 to silver to gold which have been recorded during the last 523/ 8, Chicago Milwaukee St. Paul & Pacific 5s, 1975, from 27 years are set forth in the following table assembled by 373/i to 353/i and Denver & Rio Grande Western 5s, 1955, Senator Key Pittman (Democrat) of Nevada, according to from 193/i to 173i. Chicago Rock Island & Pacific 4s, 1988, Washington advices (Dec. 21) to the New York "Herald advanced from 45% on Tuesday to 50%, on the announceTribune": ment that July 1 interest was to be paid. Prices stiffened on Friday in line with the improvement in securities prices Gold Silver Vo ume Value Average Fine Year generally and possibly in sympathy with a good carloadings Fine Ratio Ratio N. Y. Ounces Ounces Price report. 19.471.080 165,054.497 1906 8.48 30.95 66.79 In a rather dull market utility bonds were enerally soft. 1907 19.977.260 184,206.984 9.22 31.64 65.32 21.422,244 203,131.404 1908 9.48 All classes were affected. Among high grade issues, typical 39.10 52.86 1909 21.956.111 212.149.023 9.66 40.14 51.50 changes for the week include Duquesne Light 43/2s, 1967, up 1910 22.022.180 221.715.673 10.07 38.64 53.49 1911 22.397.136 226.192,923 10.10 38.78 53.30 % to 1023, and American Tel. & Tel. 5s, 1960, up % to 1912 22.605.068 230.904.241 10.21 33.98 60.83 1913 22,254,983 210.013.423 9.44 34.57 59.80 103. Other bonds changed as follows: Louisville Gas & 21,301,836 172,263,596 1914 8.09 37.71 54.81 21,490.766 202.847,974 Aver. 9 Yrs Electric 5s, 1952, down 43/i to 883/2, Pacific Gas & Electric 9.42 36.17 57.63 22,737,520 173,000.507 1915 7.61 41.60 49.69 43's, 1957, down 33 to 8534, Jersey Central Power 432s, 22,031,094 180,801.919 1916 8.21 31.48 65.66 1917 20.345.528 186.125.017 9.15 25.39 81.42 3 and New Orleans Public Service 5s, 1961, down 1% to 74% 18.614.039 203.159,431 1918 10.91 21.36 96.77 1919 17.698,184 179,849.940 10.16 18.60 111.12 1955, 41. down 2 to 1920 16.130.110 173,296,382 10.74 20.49 100.90 15.974,962 171.285,542 1921 Fractional movements with a slightly lower general trend 10.78 32.99 62.65 15,451.945 209,815.448 1922 13.58 30.61 67.52 were seen in industrial issues this week. A few bonds showed 17,790,597 246.009.534 1923 13.83 31.86 64.87 1924 19,031.001 239.484.703 12.58 30.95 66.78 considerable weakness. Steels were little changed. Na1925 19.025,942 245.213,993 12.89 29.93 69.07 1926 19.349,118 253.795,166 13.12 33.28 62.11 tional Steel 5s, 1956, were % point lower at 90, while Bethle1927 19,431,194 253.981.085 13.07 36.67 56.37 hem Steel deb. 5s, 1942, were up 2 points to 98. Tire and 1928 19,700.049 257,925,154 13.09 35.53 58.18 1929 19,500,152 260.970.029 13.38 39.01 52.99 rubber company bonds were unchanged. In the oil group 1930 ' 20,836,318 248.708.426 11.94 54.18 38.15 1931 22.818,701 192.709,971 8.45 72.02 28.70 the Shell issues showed fractional losses as did Texas Corp.5s, 1932 23,884,000 166,454,000 6.97 74.11 27.89 1944. Miscellaneous issues losing previous gains included Aver, for entire 27-yr. period. 20,139,606 209,934.000 10.56 36.50 62.21 Kresge Foundation 6s, 1936, off 1 point to 79, Remington Rand 53's, 1947, down 13% points to 75 and Childs 5s, 1943, off 3 points to 383/2. National Dairy 5 Xs, 1948, were a weak BOOK NOTICE feature down to 77 from 80. DELAWARE LAWS AFFECTING BUSINESS CORForeign bonds as a whole showed little fluctuation this PORATIONS. Paper cover, 488 pages. Price $2.00 includ- week. Issues such as Argentine, Belgian, Finnish, German ing postage. United States Corporation Co., 1,50 Broadway, and Japanese were firm and closed the week at approximately last Friday's levels. The Mexican 5s took a drop from a New York City. price of 7 last week to 5% this week. Rotterdam 6s went This is the title of a new book that should prove very to 117 on Monday, but sold off later in the week, closing at valuable to members of the Bar and other persons interested 109 on Friday. corporations. Delaware It is so set up and indexed that in Moody's computed bond prices and bond yield averages quick access can be had to a needed case or desired subject are given in the tables below: MOODY'S BOND YIELD AVERAGES.t (Based on Indivtduat Closing Prices.) 83.23 82.99 83.11 83.23 83.60 83.85 83.97 84.22 84.10 84.10 83.97 83.60 83.60 83.48 82.99 82.50 82.02 81.66 81.54 104.33 104.33 104.16 104.33 104.33 104.51 104.51 104.51 104.51 104.16 104.16 104.16 104.16 104.33 103.82 103.48 103.15 102.98 102.47 91.96 91.96 91.96 92.10 92.53 92.68 92.82 92.97 92.68 92.68 92.68 92.39 92.39 92.25 91.81 91.25 91.11 90.97 90.69 79.91 79.91 79.91 79.91 80.03 80.14 80.49 80.84 80.84 80.72 80.49 80.03 80.14 80.26 79.91 79.22 78.77 78.55 78.99 84.80 64.06 64.55 64.88 65.37 65.79 85.87 66.04 66.04 66.21 66.13 65.62 65.62 65.12 64.47 64.31 63.35 62.87 62.56 83.48 83.11 83.11 82.99 83.35 83.72 83.85 84.35 83.97 83.85 83.72 83.23 82.99 82.74 82.02 81.18 80.72 80.03 79.68 73.05 72.75 73.15 73.55 73.85 74.15 74.36 74.46 74.67 74.77 74.67 74.15 74.15 73.95 73.35 73.05 72.45 72.06 72.16 95.48 95.33 95.33 95.48 95.78 95.78 95.78 95.78 95.63 95.63 95.63 95.63 95.93 95.93 95.93 95.93 94.18 95.48 95.18 Nov. 24 17 10 80.37 80.26 83.48 85.48 86.77 87.56 88.10 86.64 86.25 86.25 89.59 89.04 89.86 90 69 91.25 91.39 91.67 91.67 90 97 91.67 90.41 88.90 87.96 86.77 86.64 85.87 85.10 84.10 82.74 79.68 77.11 74.67 101.97 102.14 103.99 105.89 106.78 107.49 107.49 106.78 106.25 105.54 107.67 107.31 1.07...4 107.67 107.85 107.85 107.67 107.14 106.96 106.96 100.25 105.72 105.54 105.20 104.16 103.82 103.99 103.32 102.30 99.36 99.68 97.78 89.31 89.17 91.67 94.43 95.63 97.16 97.62 96.39 95.93 95.33 98.25 97.47 98.25 99.04 100.00 100.33 100.00 99.52 99.38 99.04 97.62 96.54 95.33 93.85 94.43 96.99 93.26 ,92.25 90.55 87.30 85.35 83.35 Stoek 85.87 85:10 84.48 87.83 89.17 Stock 85.48 89.31 90.83 92.68 92.53 92.39 91.81 92.25 90.69 100.33 82.99 89.72 71.38 77.88 77.77 81.30 83.48 85.35 88.38 86.64 84.72 84.60 84.97 87.69 86.91 87.83 88.63 88.77 88.77 89.17 89.17 88.21 88.2 86.9 85135 84.60 83.60 83.48 82.87 81.78 80.72 79.34 76.67 74.48 72.16 Excha 73.95 72.65 72.85 75.82 77.33 Excha 72.06 76.25 79.45 81.54 80.49 81.18 81.07 81.90 79.34 89.31 71.87 78.55 54.43 61.34 77.66 61.19 77.22 64.71 80.37 66.04 83.35 67.33 85 45 67.42 87.30 68.31 88.10 66.73 86.64 66.47 86.38 66.73 86.38 71.09 90.27 70.90 89.59 72.26 91.11 73.05 91.81 74.15 91.96 74.36 92.25 75.19_ 92.25 75.71 92.25 74.67 91.96 76.67 92.39 75.40 90.97 73.35 86.90 72.06- 87.17 70.43 85.61 70.15 88.12 68.94 85.61 68.04 84.47 66.98 83.35 65.62 81.66 62.56 78.55 58.32 74.36 55.73 71.38 age Cie sed 54.80 71.09 53.28 70.62 53.88 71.38 57.24 73.65 58.52 74.57 nge Clo lied 54.18 69.59 57.98 73.15 80.60 75.50 62.48 77.77 61.34 76.25 62.95 76.25 83.11 75.09 64.31 75.71 61.56 71.96 77.66 93.26 53.16 69.59 67.86 78.99 37.94 47.58 71.29 71.67 74.98 77.11 78.55 78.66 79.34 77.11 77.00 76.67 80.72 80.37 81.30 82.50 83.97 84.22 85.23 85.48 84.72 85.87 84.72 83.85 83.23 82.50 81.90 81.18 80.84 80.14 79.11 75.92 74.05 72.06 95.03 94.58 97.31 97.78 98.26 98.26 98.41 97.94 97.31 97.31 99.04 98.41 98.57 9873 98.72 98.72 98.4 97.94 97.11 97.3 95.92 94.71 94.14 92.63 92.21 91.11 90.21 89.31 87.61 84.81 83.31 81.33 74.67 73.25 73.35 78.10 80.49 81.93 79.91 80.1, 82.1, 82.7, 76.35 80.60 83.85 85.99 8.5.99 87.56 88.23 89.17 88.23 89.31 70.05 87.89 65.71 78.4, 83.11 84.91 86.21 85.41 86.31 88.6, 87.51 86.31 99.0, 78.4 85.8 62.01 Weekly3 Oct. 27 20 13 6 Sept. 29 22 15 8 1 Aug. 25 18 11 4 July 28 21 14 7 June 80 23 16 9 2 May 26 19 12 5 Apr. 28 21 14 13 7 1 A ar. 24 17 10 3 Feb. 24 17 10 75.61 100.00 74.46 99.84 74.77 99.52 77.88 101.64 79.11 102.30 74.67 99.04 78.77 102.98 81.30 104.51 83.23 105.89 82.38 105.37 3 Jan. 27 83.11 • 105.54 20 82.99 105.03 13 83.85 105.54 e 81.66 104.85 High 1933 92.39 108.03 Low 1933 74.15 97.47 High 1932 82.62 103.99 Low 1932....... 87.87 85.61 Year AgoDec. 22 1932_ _ .._ 78.55 102.98 Two Years Ago'Dar 99 11121 'AR 70 86.91 75.40 59.22 67.77 85.61 844' , •„ , 411 AR , 7000 . RR 17 10 AI 13927 '7277 an 1, Dec. 22._ 21__ 20__ 19__ 18__ 16._ 16__ 14__ 13._ 12__ II__ 9__ 8__ 7-. 6-5-42__ IWeekly Nov.24__ 17__ 10-3-Oct. 27-20-13-6... Sept.29__ 22-_ 15... 8__ I__ Aug.25._ 18-II__ 4-July 28-21._ 14__ 7__ June 30_. , 23_ _ 16._ 9__ 2._ May 26_. 19__ 12._ 5_ _ Apr. 28_ _ 21__ 14._ 13__ 7._ 1__ Mar.24... 17__ 10.. 3._ Feb. 24__ 17.. 10._ 3._ Jan. 27.. 20.. 13_. 6_. Low 1933 High 1933 Low 1932 High 1932 Yr. AgoDec.22.32 2 Yrs.Ago Ti an 90,91 5.28 5.28 5.28 5.27 5.24 5.23 5.22 5.21 5.23 5.23 5.23 5.25 5.25 5.26 5.29 5.33 5.34 5.35 5.37 6.22 6.22 6.22 6.22 6.21 6.20 6.17 6.14 6.14 6.15 6.17 6.21 6.20 6.19 6.22 6.28 6.32 6.34 6.30 7.77 7.86 7.80 7.76 7.70 7.65 7.64 7.62 7.62 7.60 7.61 7.67 7.67 7.73 7.81 7.83 7.95 8.01 8.05 RR. 5.92 5.95 5.95 5.96 5.93 5.90 5.89 5.85 5.88 5.89 5.90 5.94 5.96 5.98 6.04 6.11 6.15 6.21 6.24 5.94 5.96 5.95 5.94 5.91 5.89 5.88 5.86 5.87 5.87 5.88 5.91 5.91 5.92 5.96 6.00 6.04 6.07 6.08 4.49 4.49 4.50 4.49 4.49 4.48 4.48 4.48 4.48 4.50 4.50 4.50 4.50 4.49 4.52 4.54 4.56 4.57 4.60 6.18 6.19 5.92 5.76 5.66 5.60 5.56 5.67 5.70 .5.70 5.45 5.49 5.43 5.37 5.33 5.3 5.30 5.30 5.35 5.30 5.39 5.50 5.57 5.66 5.67 5.73 5.79 5.8; 5.98 6.24 6.47 6.70 4.63 4.62 4.51 4.40 4.35 4.31 4.31 4.35 4.38 4.42 4.30 4.32 4.33 4.30 4.29 4.29 4.30 4.33 4.34 4.34 4.38 4.41 4.42 4.44 4.50 4.52 4.51 4.55 4.61 4.79 4.77 4.89 6.61 6,72 6.69 6.40 6.29 4.75 4.78 4.78 4.65 4.61 6.70 6.32 6.10 5.94 681 5.95 5.96 5.89 6.07 5.25 6.75 5.99 8.74 4.81 4.57 4.48 4.40 443 4.42 4.45 4.42 4.46 4.28 4.91 4.51 5.75 6.34 4.57 5.65 6.63 8.50 7.42 9 01 F 91 a q.2 9 K9 ln al 2 111 8.21 6.42 5.47 6.40 6.46 8.23 5.48 6.41 7.78 6.18 6.10 5.30 7.62 5.93 5.92 5.11 5.76 5.77 7.47 5.03 5.62 5.69 7.46 4.93 5.56 7.36 4.90 5.67 7.54 5.67 5.82 4.98 7.57 5.69 5.83 5.01 5.69 7.54 5.08 .5.80 5.40 7.06 5.59 4.86 7.08 5.45 5.65 4.91 5.34 6.94 5.58 4.86 6.86 5.29 5.52 4.81 5.28 .5.51 11.75 4.75 6.73 5.26 5.51 _ 4.73 6.65 5.26 4.75 5.48 5.26 6.60 5.48 4.78 5.28 6.70 5.55 4.79 5.25 6.51 4.81 5.55 5.35 6.63 5.65 4.90 5.50 6.83 4.97 5.77 5.63 6.96 5.83 5.05 5.75 7.13 5.18 5.91 5.71 7.16 .5.11 5.92 5.75 7.29 5.14 5.97 5.84 7.39 5.19 6.06 5.93 7.51 6.15 5.26 6.07 7.67 5.38 6.27 6.34 8.05 5.62 6.51 6.73 8.63 5.77 6.72 7.03 9.02 6.95 5.93 Stook Excha nge Clo 9.17 . 7.06 5.73 6.77 7.11 9.42 5.79 6.90 7.03 9.32 5.76 6.88 8.79 6.80 6.59 5.58 6.71 8.60 5.48 6.45 Stock Exeha nge Clo 7.22 9.27 5.76 6.96 5.47 6.55 8.68 6.85 6.62 8.31 5.36 6.26 6.41 6.08 8.06 5.23 524 6 17 8 21 6 55 8.00 6.55 5.25 6.11 6.66 7.98 5.29 6.12 5.26 6.05 7.83 6.60 6.97 5.37 6.27 8.18 5.19 6.42 4.73 .5.47 7.22 9.44 6.98 5.96 7.41 6.30 5.44 6.34 7.03 9.23 12.96 10.49 40 ForP. U. Indus. Wm. . Dec. 22 21 20 19 18 16 15 14 13 12 11 9 8 7 6 5 4 2 1 P. U. Indus. cocemoommoct,000,M=Menomm 400 000 RR. 5.04 5.05 5.05 5.04 5.02 5.02 5.02 5.02 5.03 5.03 5.03 5.03 5.01 5.01 5.01 5.01 5.06 5.04 5.06 8.76 8.77 8.78 8.76 8.77 8.81 8.82 8.84 8.92 8.88 8.84 8.83 8.86 8.89 8.89 8.93 8.97 8.94 8.98 5.07 5.10 4.92 4.89 4.86 4.86 4.85 4.88 4.92 4.92 4.81 4.85 4.84 4.83 4.83 4.83 4.85 4.88 4.83 4.92 5.01 5.09 5.13 5.23 5.26 5.34 5.40 5.47 6.59 5.81 5.93 6.10 9.02 9.24 9.13 9.03 9.05 9.40 9.13 9.22 9.39 9.62 9.36 9.34 9.27 9.09 9.10 909 9.03 8.91 8.84 8.89 9.32 9.66 9.51 9.68 9.78 9.62 9.63 1002 10.07 9.89 10.21 10.5E 6.05 6.22 6.20 6.03 5.98 10.82 11.02 10.83 10.73 10.71 6.35 5.95 5.80 570 5.76 5.69 5.67 5.60 5.69 4.81 6.35 5.75 8.11 11.11 11.01 10.41 10.01 10.21 9.81 9.81 9.61 9.91 8.61 11.13 9.8 15.8 5.84 10.4 7.131 1.419 mom44W42 - Baa. moomm A. 120 Domestics by Groups. icnio,o,c,cnoo..0.0.05A100.mpaicacmpoMOoppc.4.0.aaaatmapOocoolc000poorm Aa. AU 120 Domestics by Ratings. 1933 120 Daily DomesBaa. Aaa. Aa. A. Averages tie. ovmcomm Aaa. 120 D0771611148 by Ratings. 14 120 Domestics by Groups. All 120 Domestic. m :4 MOODY'S BOND PRICES.* (Based on Average Yields.) 1933 Daily Averages. 4415 Financial Chronicle Volume 137 Notes.-5 These 'prices are computed from average yield on the basis o one "ideal" bond (4%% coupon, maturing in 31 years) and do not purport to show either the average level or the average movement of actual price quotations. They merely serve to Illustrate in a more comprehensive way the relative levels and the relative movement of yield averages, the latter being the truer picture of the bond market. t The latest complete list of bonds used in computing these indexes was published in the "Chronicle" of Sept. 9 1933, Page 1820. For Moody's index of bond prices by months back to 1928, see the "Chronicle" of Feb. 6, 1932, page 907. Indications of Business Activity THE STATE OF TRADE-COMMERCIAL EPITOME. Friday Night, Dec. 22, 1933. There was further improvement in industrial and commercial activity during the week. Without exception the major industries made further increases over the.level of a week ago and in most cases as compared with the corresponding periods of last year. Merchandise loadings made a materially better showing. So did the production in the coal, petroleum, electric power, steel and automobile industries. The improvement in trade was bolstered in no small degree by Christmas business of nearly record proportions. All the reports on business .were generally favorable. The rate of steel production was reported to have increased to 34.2% during the week, and in some quarters it was estimated that .it had risen to 36%. This is the highest level reached since October 21. The lumber output expanded slightly, through orders and shipments declined. Bituminous coal production declined as is usual in December. General retail sales were 10 to 40% above those of the same period last year. The best reports came from the agricultural and industrial districts. Staple dry goods, groceries, hardware, clothing and house-furnishings shared in this business to a very large extent, whereas a year ago the buying was almost exclusively of gift items. There was also good buying of novelties, semiluxuries and the better grades of merchandise. There was more confidence in the outlook for the future, and consumers' purchasing power was increased by the extension of emergency relief jobs and the release of millions of dollars impounded in closed banks. Factory payrolls are larger. There was a good holiday demand for furniture. Cigarettes and cigars were in big demand. Sales of pianos, radios and other museial instruments as well as electric sewing machines, refrigerators and washers were larger. The demand for men's clothing was the largest in years. Wholesale business was about on a par with a week ago. The Christmas demand was larger than expected and stocks in many lines have become incomplete and in many cases depleted. Mail-order houses and chain store stocks were rapidly reduced. The call for seasonable merchandise was fair and there were a number of inquiries for spring goods. Cotton goods were in better demand and prices of print cloths were a little higher. Orders for glassware were the largest in nearly 14 years, and production in many plants was trailing orders. Sales of hardware were larger. The grocery trade experienced the best week this year with shipments exceeding those around the Thanksgiving season. Commodity prices after experiencing a rather severe setback during the week rose sharply to-day on buying stimulated by the announcement of the Government's silver purchasing plan. Cotton was a little more active, and shows 4416 Financial Chronicle an advance for the week of2 to 13 points. The grain markets recovered nearly all of the early losses and end 1 to 1%c. net lower on wheat, % to ye.lower on corn, % to %c.lower on oats and % to 3%43. off on rye. Silver declined steadily during the week, but to-day rallied sharply and ended 45 to 89 points higher than a week ago. Rubber shows an advance of 7 to 12 points as compared with last Friday. Coffee, sugar, cocoa and silk were all weaker than a week ago. Temperatures this week have been considerably higher and unseasonably mild weather has prevailed in many parts of the country, although the latter part of the week has been somewhat colder. Rain has fallen in many parts of the country and precipitation has ranged from light to heavy. To-day it was 36 to 52 degrees here and cloudy. The forecast was for fair weather, with strong westerly winds. Overnight, at Boston it was 32 to 38 degrees; Baltimore, 34 to 50; Pittsburgh, 32 to 38; Portland, Me., 20 to 28; Chicago, 32 to 38; Cincinnati, 38 to 44; Cleveland, 34 to 38; Detroit, 30 to 34; Charleston, 46 to 66; Milwaukee, 30 to 36; Dallas, 44 to 70; Savannah, 44 to 70; Kansas City, Mo., 46 to 62; Springfield, Mo., 46 to 62; St. Louis, 46 to 56; Oklahoma City, 42 to 66; Denver, 42 to 68; Salt Lake City, 32 to 52; Los Angeles, 58 to 82, San Francisco, 42 to 52, Seattle, 52 to 56, Montreal, 14 to 20, and Winnipeg, 10 below to 6 above zero. Wholesale Commodity Prices Decline During Week Ended Dec. 16, According to Index of National Fertilizer Association. Wholesale commodity prices, as measured by the index of the National Fertilizer Association, declined seven points during the latest week ended Dec. 16. During the preceding week the index advanced three points, while two weeks ago there was no change in the movement in the index. A month ago the index stood at 69.5, or 14 points higher than the latest index number. A year ago the index stood at 59.3, being 88 points lower than the latest index number. (The three-year average 1926-1928 equals 100.) Under date of Dec. 18 the Association added: During the latest week six groups declined, three advanced and five showed no change. The declining groups were foods, grains, feeds and livestock, textiles, miscellaneous commodities, house-furnishing goods and fats and oils. Large declines were noted in fats and oils and foods. The advancing groups were metals, fertilizer materials and mixed fertilizers Thirty-three commodities declined, while 23 advanced during the latest week. A week ago there were 27 advances and 22 declines. Two weeks ago there were 17 advances and 27 declines. The list of declining commodities during the latest week included butter, lard, soya bean oil, peanut oil corn oil, cheese, eggs, wheat at Kansas City and Minneapolis, cattle, hogs, silver, rosin, rubber, cotton yarns and silk. Important commodities that advanced included cottonseed oil, tallow, milk, apples, barley, hay, cottonseed meal, linseed meal, sheep, heavy melting steel, tin, calfskin, burlap and leather. The index numbers and comparative weights for each of the 14 groups listed in the index are shown in the table below: WEEKLY WHOLESALE PRICE INDEX-BASED ON 476 COMMODITY PRICES (1926-1928=100). Per Cent Each Group Bears to the Total Index. Group. Latest Week Dec. 16 1933. Preceding Week. Month Ago, Year Ago. 23.2 16.0 12.8 10.1 8.5 6.7 6.6 6.2 4.0 3.8 1.0 .4 .4 .3 Foods Fuel Grains, feeds and livestock Textiles Miscellaneous commodities... Automobiles Building materials Metals House-furnishing goods Fats and oils Chemicals and drugs Fertilizer materials Mixed fertilizer Agricultural implements ....._ 69.6 68.4 47.6 68.1 67.5 84.9 78.6 79.0 85.2 40.5 88.2 65.7 72.8 90.8 71.2 68.4 48.4 66.3 67.7 84.9 78.6 78.9 85.4 45.1 88.2 65.6 70.9 90.8 72.7 67.8 50.3 67.2 67.4 84.9 78.7 79.2 85.4 48.9 88.2 65.3 70.9 90.8 60.2 62.2 35.7 43.0 61.2 86.6 70.7 67.6 77.4 47.5 87.3 61.7 67.9 91.8 RR 1 86.8 69.5 59.3 ton 11 411 arnitria mm111716.4 Moody's Daily Index of Staple Commodity Prices in Sharp Recovery from Early Losses. The easy trend of staple commodity prices which has persisted for the last month was sharply interrupted on the last day of this week by an upwaid movement which embraced most active commodities. Moody's Daily Index of Staple Commodity Prices wiped out nearly all of the losses accumulated during the first five days of the week under review, closing at 123.5 for a net decline of half a point. On Thursday a value of 121.2 was reached, very close to the post-July low of 118.8 on October 16. Only five of the fifteen commodities comprising the Index closed at lower prices for the week, a one-cent decline in hides being the most important, with wheat and corn also weak, while cocoa and silk were slightly lower. Seven staples, on the other hand, showed improvement, i.e., hogs, Dec. 23 1933 scrap steel, copper, cotton, silver, rubber and coffee. Sugar, wool tops and lead were unchanged. The movement of the Index number during the week, with compaiisors, is as follows: Fri. Sat. Mon. Tues. Wed. Thurs. Fri. Dec. 15 Dec. 16 Dec. 18 Dec. 19 Dec. 20 Dec. 21 Dec.22 124.0 123.6 123.4 122.8 121.3 121.2 123.5 2 weeks ago, Dec. 8 Month ago, Nov.22 Year ago, Dec. 22 1932High,Sept. i 6 Low, Dec. 31 1933 High, July 18 Low, Feb. 4 124.2 126.6 79.6 103.9 79.3 148.9 78.7 Revenue Freight Car Loadings for Latest Week 7.5% in Excess of Same Period Last Year. Loadings of revenue freight for the week ended Dec. 16 1933 totaled 554,832 cars, an increase of 17,329 cars, or 3.2%, over the preceding week and a gain of 39,063 cars, or 7.5%, over the corresponding period last year. It was, however, a decrease of 26,338 ears, or 4.5%, below the same week in 1931. Loadings for the week ended Dec. 9 1933 showed an increase of 3.2% over those of the week ended Dec. 10 1932 and were 12.4% below the total for the same period in 1931. • The first 16 major railroads to report for the week ended Dec. 16 1933 loaded 242,277 cars during that period, compared with 231,865 cait3 in the preceding week and 226,101 cars in the week ended Dec. 17 1932. Comparative statistics follow: REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS. (Number of Cars.) Loaded on Lines. Weeks Ended. Rec'd from Connection*. Dec. 16 Dec. 9 Dec. 17 Dec. 16 Dec. 9 Dec. 17 1933. 1933. 1932. 1933. 1933. 1932. Atch. Tepeka & Santa Fe Ry____ Chesapeake & Ohio fly Chic. Burlington & Quincy RR Chlo. Milw.St. Paul & Pao. Ry Chicago dr North Western Ry Gulf Coast Lines & subsidiaries International Great Northern RR. Missouri-Kansas-Texas Lines Missouri Pacific RR New York Central Lines N. Y. Chicago & St. Louis Ry Norfolk & Western fly Pennsylvania RR. System Pere Marquette fly Southern Pacific Lines Wabash fly Total 18,647 19,447 15.717 16,586 13,056 2,337 2,400 4,675 13,313 38,767 3,721 14.818 50,855 4,138 19,051 4,959 18,252 17,463 14.530 15,711 12,701 2,383 2,183 4,465 12,740 37,091 3,598 12,267 50,037 4,196 19,453 4,795 17,102 4,122 3,693 3,494 20.620 5,565 5,142 5,731 13,335 5,632 5,003 5,345 15,852 5,410 4,865 5.440 11,588 7,693 6,856 7,107 1,960 1,217 1,188 902 1,669 1,602 1,582 1,447 4,212 2,569 2,547 1,963 12,570 6,839 5,829 6,062 35,934 51,653 46,979 48,559 3,289 7,572 6,901 6,657 15,527 3,130 3,033 2,965 48,450 29,667 27.003 27,598 4,543 x x x 14,907 x x x 4,543 6.807 5,807 6,929 242 277 231685 228101 139476 126.426 1311.190 x Not available. TOTAL LOADINGS AND RECEIPTS FROM CONNECTION. (Number of cars.) Weeks Ended. Illinois Central System St. Louis-San Francisco fly Total Dec. 16 1933. Dec. 9 1933. Dec. 17 1932. 25,036 12,495 23,869 12,124 25,222 10,048 37,531 35,993 35,270 Loading of revenue freight for the week ended Dec. 9 totaled 537,503 cars, the American Railway Association announced on Dec. 15. This was an increase of 42,078 cars above the preceding week this year when loadings were reduced owing to the observance of Thanksgiving holiday. It also was an increase of 16,896 cars above the corresponding week in 1932, but a reduction of 76,118 cars under the corresponding week in 1931. Details follow: Miscellaneous freight loading for the week of Dec. 9 totaled 194.424 cars, an increase of 12,984 cars above the preceding week and 26.990 cars above the corresponding week in 1932, but 6.017 cars below the corresponding week in 1931. Loading of merchandise less than carload lot freight totaled 162,107 cars, an increase of 20.911 cars above the preceding week, but 3,653 cars below the corresponding week last year and 35,447 cars below the same week two years ago. Grain and grain products loading for the week totaled 28.539 cars, an increase of 2.178 cars above the preceding week and 784 cars above the corresponding week last year, but 1.642 cars below the same week in 1931. In the Western districts alone grain and grain products loading for the week ended Dec. 9 totaled 18,363 cars, an increase of 1.268 cars above the same week last year. Forest products loading totaled 20,352 cars, a decrease of 400 cars below the preceding week, but 4,998 cars above the same week in 1932 and 1.287 cars above the same week in 1931. Ore loading amounted to 2.564 cars, a decrease of 271 cars below the preceding week. but 724 cars above the corresponding week in 1932. It was, however, a decrease of 1,440 cars below .the same week in 1931. Coal loading amounted to 108,369 cars, an increase of 3,682 cars above the preceding week, but 13,016 cars below the corresponding week in 1932 and 24.699 cars below the same week in 1931. Coke loading amounted to 6,265 cars, an increase of 487 cars above the preceding week and 1,286 cars above the same week last year, but 392 cars below the same week two years ago. Livestock loading amounted to 16.883 cars, an increase of 2,507 cars above the preceding week, but 1,217 cars below the same week last year and 7,768 cars below the same week two years ago. In the Western districts alone loading of livestock for the week ended Dec. 9 totaled 12,510 cars, a decrease of 1,693 cars compared with the same week last year. Four of the seven districts reported increases for the week of Dec. 9 compared with the corresponding week in 1932, those four being the Eastern, Allegheny. Northwestern and Central Western. All districts, however, reported reductions compared with the corresponding week in 1931. Loading of revenue freight in 1933 compared with the two previous years follows: Four weeks in January Four weeks in February Four weeks In March Five weeks in April Four weeks in May Four weeks In June Five weeks in July Four weeks in August Five weeks in September Four weeks in October Four weeks in November Week ended Dec. 2 Week ended Dec. 9 4417 Financial Chronicle Volume 137 1932. 2,266,771 2,243,221 2,280,837 2,774,134 2,088,088 1,966,488 2,420.985 2.064,798 2,867,370 2,534,048 2,189,930 547,095 520,607 2,873,211 2,834,119 2,936.928 3,757,863 2.958,784 2,991,950 3,692,362 2,990,507 3,685,983 3,035.450 2,619,309 636,366 613,621 27 428 Mg 26 764 372 35 626 453 • "Iwo 1931. 1933. 1,910,496 1,957,981 1,841,202 2,504,745 2.127,841 2,265,379 3,108.813 2,502,714 3,204,551 2,605,642 2,366,097 495,425 537.503 In the following table we undertake to show also the loadings for the separate roads and systems for the week ended Dec. 9. During this period a total of 75 roads showed increases over the corresponding week last year, the most important of which were the Pennsylvania System, the Baltimore & Ohio RR., the New York Central RR., the Union Pacific System, the Chicago Milwaukee St. Paul & Pacific Ry., the Chicago Burlington & Quincy RR., the Southern Pacific Co. (Pacific Lines), the Chicago & North Western By. and the Reading Co. REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS (NUMBER OF CARS)-WEEK ENDED DEC 9. 1933. 1,983 3,057 7,176 870 2,872 10,438 597 1.129 2,773 7,321 610 2,509 9,676 607 1,699 3,280 8,513 683 2,867 11,906 633 227 4,316 9,218 2,361 2,347 9,971 840 213 4,382 8,941 2,349 1.915 10,471 908 26,993 24,625 29,591 29,280 29,179 5,467 7,975 10,292 152 873 6,764 1,109 17,699 1,941 431 333 4,804 7,582 10,479 146 1,274 7.458 1,677 16,837 2,228 493 294 6,059 10.006 11,672 155 1.730 8,367 1.733 20.140 2,100 465 377 6,560 4,991 11.551 1,756 853 6,090 35 23,129 1,839 34 262 5,851 4,379 11,494 1,804 871 5,630 20 22.218 1,934 31 214 53,036 53,272 62,804 57.090 54,446 536 1,379 7,091 .12 267 173 1.411 2.172 4,749 3,678 3,598 4,196 4.314 791 4,795 2,872 427 1,428 7,440 17 229 203 984 2,206 4,580 2,937 3,378 4,127 2.646 918 4,832 2,712 563 1,699 8,545 38 237 210 1,153 2.611 5,624 3,806 4,292 4,563 3.008 1.112 5,561 2.471 817 1,368 8,966 36 71 2,116 949 5,316 6,748 159 6.901 3,596 3.666 563 5.807 1,501 715 1,522 9,141 42 72 2.162 858 5,320 7,096 213 6.465 3,804 3,545 510 6,121 1,398 42,034 39,064 45,493 48,580 48,984 Grand total Eastern District__ 122,063 116,961 137,888 134,950 132,609 Allegheny District. Baltimore & Ohio Bessemer & Lake Erie Buffalo Creek & GauleY Central RR. of New Jersey_ __ _ Cornwall Cumberland & Pennsylvania Ligonier Valley Long Island Pennsylvania System Reading Co Union (Pittsburgh) West Virginia Northern Western Maryland c Penn-Read Seashore Lines__ 23,920 1,360 271 4.970 2 375 151 941 50.037 10.889 6.673 63 3.034 1,055 22,646 733 235 4,926 0 312 205 1.000 , 47,843 10,712 3,287 75 2,924 954 27,332 974 132 6,852 45 410 181 1.231 60,773 13,749 5,578 74 3,059 c 10,075 1,082 6 8,771 35 16 12 2.133 27.003 13,004 991 10,428 704 8 9,256 57 27 9 2,613 27,775 12,984 668 4.646 1,548 3,bii 1.489 103.741 95,852 120,390 69.326 69,591 Total Group BDelaware & Hudson Delaware Lackawanna & West_ Erie Lehigh & Hudson River Lehigh & New England Lehigh Valley Montour New York Central New York Ontario & Western_ Pittsburgh & Shawmut Pittsburgh Shawmut& Northern Total Group CAnn Arbor , Chicago Ind. At Louisville Cleve. CM. Chic. & St. Louis_ Central Indiana Detroit & Mackinac Detroit & Toledo Shore Line Detroit Toledo & Ironton Grand Trunk Western Michigan Central Monongahela New York Chicago & St. LOUIS Pere Marquette Pittsburgh & Lake Erie Pittsburgh & West Virginia_ _ _ Wabash Wheeling & Lake Erie Total Total Pocahontas District. Chesapeake & Ohio Norfolk & Western Norfolk & Portsmouth Belt Line Virginian Total Southern District. Group AAtlantic Coast Line Clinchfield Charleston & Western Carolina Durham & Southern Gainesville & Midland Norfolk Southern Piedmont & Northern Richmond Frederick. & Baton'. Seaboard Air Line Southern System Winston-Salem Southbound 1933. 1932. 127 594 570 3,032 204 753 673 352 1,189 17,217 14,528 181 115 1.807 2.586 iiii 130 551 527 3.018 255 748 941 294 1,034 19,381 15,375 117 112 1,663 2,596 -319 44,219 47,061 Grand total Southern District__ 80,317 Northwestern District. Belt Ry. of Chicago Chicago & North Western Chicago Great Western Chic. kiilw. St. Paul & Pacffic_ Chic. St. Paul Minn.& Omaha_ Duluth Missabe & Northern Duluth South Shore 4, Atlantic Elgin Joliet & Eastern Ft. Dodge Des M.& Southern_ Great Northern Green Bay & Western Minneapolis & St. Louis Minn. St. Paul & S. S. Marie Northern Pacific Spokane Portland & Seattle„- 1932. 17,463 12.267 734 2,932 18,690 13,963 662 3,271 18,718 15,014 679 3,208 5,142 3,033 984 473 5,544 3.244 911 483 33,396 36,586 37,691 9,632 10.182 8,013 1,057 332 189 54 1,282 427 287 7,090 17,188 179 7,827 852 331 158 58 1.316 424 331 6,543 17.921 166 8,982 989 361 171 48 1,687 513 406 7,130 19.926 178 3,734 1,150 793 322 102 1.093 699 2,382 2.859 9,885 556 3.705 1,231 716 227 61 895 742 3.203 3,052 9,794 612 Group BAlabama Tenn. & NorthernAtlanta Birmingham & Coast__ Atl.& W.P.-West. RR.of Ala Central of Georgia Columbus & Greenville Florida East Coast Georgia Georgia & Florida Gulf Mobile & Northern Illinois Central System Louisville & Nashville Macon Dublin & Savannah_.Mississippi Central Mobile & Ohio Nashville Chatt.& St. Louis d New Orleans-Great NorthernTennessee Central Total Total Central Western District. Atch. Top.& Santa Fe System_ Alton Bingham & Garfield Chicago Burlington & Quincy Chicago Rock Island & Pacific_ Chicago & Eastern Illinois Colorado & Southern Denver & Rio Grande Western_ Denver & Salt Lake Fort Worth & Denver City Northwestern Pacific Peoria & Pekin Union Southern Pacific (Pacific) St. Joseph & Grand Island Toledo Peoria & Western Union Pacific System Utah Western Pacific Total Southwestern District. Alton & Southern Burlington-Rock Island Fort Smith & Western Gulf Coast Lines b Houston & Brazos Valley International-Great Northern Kansas Oklahoma & GuLf Kansas City Southern Louisiana & Arkansas Litchfield & Madison Midland Valley Missouri & North Arkansas_ _ ... Missouri-Kansas-Texas Lines Missouri Pacific Natchez & Southern Quanah Acme & Pacific St. Louis-San Francisco St. Louis Southwestern b San Antonio Uvalde & Gulf Southern Pacific in Texas & LaTexas & Pacific Terminal RR. Assn. of St. Louis Weatherford Min.Wells & N.W. 1931. 1933. 1932. 218 706 907 1,924 366 510 1,030 313 587 7,128 3,092 455 202 1,314 1,855 -- -595 153 552 888 1.860 154 330 1,035 247 621 7.175 2.955 323 194 921 1,635 51,517 21,202 19,771 82,988 91,908 44,777 44,009 680 12,701 2,161 15,711 3,230 456 487 3,135 .217 8,619 462 1,584 3,735 8.878 931 681 12,096 2.151 15,473 2,950 351 422 2,532 207 7,160 454 1.492 3,742 8,125 859 986 1,199 14,762 6,856 2.647 1.885 19,238 4,865 3,752 1,960 455 155 391 318 3,377 3.734 90 280 8,574 1.434 505 296 1.109 1,807 4,814 1,528 9,303 , 1,852 783 1.251 1,229 6,616 1,942 5,033 1,879 79 332 2,984 127 1,191 300 1,229 1,399 1,549 862 63.007 58,695 71,674 28.532 26,751 18,252 2,464 208 14,530 10,414 2.702 1,494 3,494 246 1.554 565 94 13,410 222 326 15,303 632 1,564 '18,680 2,821 233 13,200 10.799 2,685 1,010 3.127 477 1,347 399 137 11,641 221 240 11,250 789 1.054 21,677 3.348 207 17,161 13,879 2.873 1,675 3,568 555 1,721 427 102 13,746 272 270 15.192 1,117 1,522 3,693 1.282 32 5,003 4,857 1,470 1,052 1.798 4 899 260 35 3,099 193 803 6.141 8 1.416 3.684 1,442 .33 4.949 5.033 1,594 703 1.539 7 952 214 41 2.606 188 659 5,605 9 1,072 87,474 80,110 99,312 32,045 30,330 127 124 213 2,383 103 137 234 2,504 163 130 305 a2,781 2.781 364 125 1,188 2.509 552 149 1,000 2,165 149 1,472 1,058 346 533 129 4,465 12,740 36 197 7,776 1,938 1,81i 104 1,563 1,166 248 634 67 4,711 13,154 38 198 8,067 2,214 -- -6,364 4,676 1,372 43 1-.471 226 1,870 1,310 315 964 75 5,038 15,814 47 105 8,830 2,359 1-,582 600 1.105 624 622 175 214 2,547 5,829 15 168 2.899 1.156 2:62 724 1,202 633 457 185 269 2,098 5.993 13 129 2,534 1.151 6-.455 5,084 1,472 21 : 1 967 2,491 1,660 32 : 1 914 2.947 1.867 47 6-,Eiii 4.262 1.309 22 41 . 1931. Total Loads Received from Connections. A' 1932. Total Revenue Freioht Loaded. Railroads, .1s2 , 10. 1933. Eastern District. Group ABangor & Aroostook Boston & Albany Boston & Maine Central Vermont Maine Central New York N. H. & Hartford Rutland Total Loads Received from Connections. . ba I•3 Total Revenue Freight Loaded. P;P•cul-•en cl, t., 0, .. , AO oo , 0.—.0,—,6—*C4C400oAC400N.CO.IsJ mocac.w.<0.—e-iot.opo-44.tv Railroads. -iii 36,098 35,927 49,415 54.830 28,144 28.405 Total 40,391 24,238 Total 47,505 23,575 a Estimated. b Included in Gulf Coast Lines. c Pennsy vania-Reading Seashore Lines include the new consolidated lines of the Wert Jereey & Seashore RR., Pennsylvania RR., and A of part 'antic Read ng formerly City RR., formerly part of Reading Co.; 1931 figures included in Pennsylvania System and Co. d Included In Gull Mobile & Northern RR. .Previous week's figures. Grocery Sales During November 77% Below November 1932 According to Preliminary Estimate of U. S. Department of Commerce-Dollar Volume Approximately 1% Higher. The dollar value of grocery sales in November, through a selected sample of chain units, was about 1% higher than last year, according to preliminary estimates of the U. S. Department of Commerce. Total sales in the first 11 months of 1933 were 7M% below the corresponding period of 1932. In announcing this on Dec. 16, the Commerce Department further said: November sales this year showed an approximately normal seasonal decrease of 1.7% from the previous month. The percentage changes given above are based on average daily sale. so computed as to eliminate the effect of differences in the number of working days of the several months and to allow for the varying importance of different days in the grocery week. These estimates are based upon figures furnished by a co-operating group of chain organizations and represent storm continuously in operation since 1929. Consequently they show changes in the value of consumer Purchases rather than expansion or decline in the scope of the chains included. The reporting firms operate over 70% of the chain grocery units In the United States and the sample is so constructed as to give all regions of the country their proper relative importance as shown by the census of distribution. Arrangements are being made to supplement these reports. at an early date, by reports from a large sample of Independent grocers. Financial Chronicle 4418 "Annalist" Weekly Index of Wholesale Commodity Prices Dropped Further During Week of Dec. 19 -Due to Seasonal Declines in Livestock and Dairy Products-Domestic and Foreign Indices Down in November. A decline of 1.3 points for the week carried the "Annalist" Weekly. Index of Wholesale Commodity Prices down to 100.8 on Dec. 19, the lowest point reached by the index since July 4. Further losses for steers, hogs, butter and eggs accounted for the greater part of the drop, although lower prices for the grains also contributed, the "Annalist" said, adding: The drop in hogs, while largely seasonal, reflected also the burden of the processing tax. The break in butter prices was due both to the normal seasonal decline and to the cessation of butter purchases by the administration. The butter surplus is abnormally large, thanks chiefly to the stimulus to production provided by the various recent milk agreements, which failed at the same time to limit production, and only government buying for relief purchases had prevented an earlier break in prices. One consequence of the recent changes in the AAA will apparently be the revision of the milk marketing agreements to provide for the control of output. THE "ANNALIST" WEEKLY INDEX OF WHOLESALE COMMODITY PRICES. Unadjusted for seasonal variation (1913=100). Dec. 19 1933. Dec. 12 1933. Dec. 20 1932. 64.9 a85.0 Farm products 82.8 10Y.8 94.0 Food products 98.6 a117.8 68.2 *119.3 Textile products 143.1 143.1 125.5 Fuels 105.2 94.7 105.7 Metals 111.8 106.5 111.8 Building materials 95.5 a98.5 Chemicals 98.5 84.8 72.7 84.8 Miscellaneous a102.1 85.6 100.8 All commodities b66.1 64.0 is All commodities on sold basis Preliminary. a Revised. is Based on exchange quotations for France, Switzerland, Holland and Belgium. The dollar declined during the week to 63.5 cents from 64.7, because of a single advance in the RFC gold price as well as the prospect of a badly unbalanced 1934 Federal budget. The "Annalist" index on a gold basis accordingly fell to 64.0 from 66.1 (revised). That domestic prices failed to respond to the drop in the dollar reflected both the mildness of the inflation stimulus contained in the RFC advance, the growing belief in the necessity of currency stabilization for any inclusive recovery, and the increasing importance of price-fixing measures and agreements for the maintenance of the prices of commodities within this country. The price of tobacco has been partially controlled for some time by marketing agreements; that of cotton is virtually fixed by the 10-cents-a-pound loans of the AAA, and neither is therefore susceptible to the influence of currency changes. There Is a considerable possibility that the prices of other agricultural commodities produced by this country will be fixed by agreements and similat measures under AAA auspices. If this should prove to be the case, one of the chief arguments offered by the administration against early currency Btabillzation would be removed. DAILY SPOT PRICES. Moody's Index. Dec. 12 Dec. 13 Dec. 14 Dec. 15 Dec. 16 Dec. 18 Tap 10 Colton. Wheat, 10.15 10.20 10.15 10.20 10.10 10.05 in 15 1.023 1.015i 1.0034 1.0134 1.01% 1.01% 1 flits Corn. Hogs. U. S. Basis. Gold Basis. .64% 3.16 124.3 .63% 3.27 123.6 3.26 .62% 124.0 .62% 3.14 124.0 .6134123.6 .61% 3-.iL 123.4 0112 21W 102 2 80.4 80.3 79.0 79.2 78.6 78.1 72 n Dec. 23 1933 94 cities declined from 54 in October to 52 in November," the Bank said. "The country check clearings index decreased from 78 in October to 77 in November. The index of miscellaneous freight car loadings was reduced from 62 in October to 61 in November. On the other hand, the index of I. c. 1. car loadings rose from 59 to 60." In its preliminary summary of agricultural and business conditions in the district, issued Dec. 16, the Bank further noted: As compared with the totals for November a year ago, the volume of business .n the month just closed continued to show a general increase, although the increase was not as great as that which has prevailed in earlier months of the year. This was partly due to the decline in the level of business this year and partly due to a sporadic increase in business during November a year ago. Bank debits in November were 1% larger than in November a year ago. Other increases occurred in country check clearings, freight car loadings, butter production and marketings of durum wheat, cattle and calves. Decreases occurred in building permits and contracts, flour shipments, linseed products shipments and marketings of bread wheat, rye, flax, hogs and sheep. Department store sales reported by representative city stores were almost exactly equal in November this year to the total reported for the same month last year. The estimated cash income during November to Northwestern farmers from seven important items was 5% larger than the income from the same items in November a year ago. Increases over last year's income occurred in durum wheat, potatoes, dairy products and hogs. Decreases occurred in income from bread wheat, rye and flax. Prices of all of the grains and of veal calves, hogs, lambs, ewes, butter, milk and potatoes were higher in November than a year ago. Prices of mitcher steers, feeder steers, hens and eggs were lower than last year's November prices. ESTIMATED VALUE OF IMPORTANT FARM PRODUCTS MARKETED IN THE NINTH FEDERAL RESERVE DISTRICT. Bread wheat Durum wheat Rye Flax Potatoes Dairy products Hogs Total or RPVPn Roma November 1933. November 1932. % Nov.1933 of Nov. 1932. 62,757,000 1,3615,000 204,000 524,000 647,000 8,517,000 7,573,000 64,237,000 749,000 390,000 800,000 261,000 6,976,000 7,062,000 65 182 62 66 248 122 1C4 521 557 000 520 475 nnn ins Employment and Payrolls in Manufacturing Industries in United States Declined from October to November-U. S. Department of Labor Reports Increased Employment in 8 of 16 Non-Manufacturing Industries. Index numbers showing the trend of employment and payrolls in manufacturing industries are computed monthly by the Bureau of Labor Statistics of the U. S. Department of Labor from repots supplied by representative establishments in 89 of the principal manufacturing industries of the United States and covering the pay period ending nearest the 15th of the month. These indexes of employment and payrolls are figures showing the percentage represented by the number of employees or weekly payrolls in any month compared with employment and payrolls in a selected base period. The year 1926 is the Bureau's index base year for manufacturing industries, and the average of the 12 monthly indexes of employment and payrolls in that year is represented by 100%. The Bureau, under date of Dec. 19, reported: Employment in manufacturing Industries decreased 3.5% between Cotton-Middling upland, New York. Wheat-No.2 red, new, c.l.t , domestic, October and November 1933, and payrolls decreased 6.2% over the month New York. Corn-No. 2 yellow, New York. Hogs-Day's average, Chicago. Moody's index-Daily index of 15 staple commodities, Dec. 31 1931=100; March 1 interval. The November index of employment was 71.4 as compared with 1933=80. 74.0 in October and the index of payrolls in November was 50.3, compared The index of the purchasing power of farm products dropped to 58 on with 53.6 in the preceding month. Dec. 6. from 59 on Nov. 29, and 61 on Nov. 15. The decline was chiefly A comparison of employment in November 1933 with November 1932 due to lower prices received, the index of prices received for a given unit shows that employment in November of the current year is 20.2% above offarm production falling to 69 from 70 and 71. Prices paid by farmers for the level of the November 1932 employment index (59.4). A similar comcommodities bought rose to 118 from 117.5 and 117. parison of the November 1933 payroll index with the November 1932 index The trend of world prices was generally downward during November,4 (38.6)shows a gain of 30.3% in payrolls over the year interval. These declines in employment and payrolls in November 1933 mark most of the indices showing moderate recessions. German prices advanced the first decreases to occur in either of these items since March. Decreases 0.4% apparently reflecting the further operation of government pricefixing measures for agricultural products. During the last of November and in both employment and payrolls between Oct. 15 and Nov. 15 have been the first weeks of December, however, the decline has apparently been reported each year since 1923, with the single exception of the year 1925 in which a slight gain in employment combined with unchanged payroll checked, with small advances in the United Kingdom, France, Germany weekly totals was reported. The decreases of 3.5% in employment and 6.2% in and Italy, the four foreign countries for which indices are available. payrolls in the current report, however, are greater than the average The change in the price trend abroad seems to have been due to the lifting declines shown in November of preceding years. The changes in employof the pressure of a declining dollar from world markets, as the dollar ment in November over the preceding 10-year period show an average during these weeks has been relatively stable. decrease of 1.3% and the changes in payrolls over the same interval show DOMESTIC AND FOREIGN WHOLESALE PRICE INDICES. an average decrease of 3.3%. (Measured in currency of country,no adjustment for depreciation; 1913=100.0). These changes in employment and payrolls In November 1933 are based on reports supplied by 18,047 establishments in 89 of the principal manu% Changeable. facturing industries of the United States. These establishments reported Nov. 1933 Oct. 1933 Sept. 1933 Nov. 1932 Mo. Year. 3,128,908 employees on their payrolls during the pay period ending nearest Nov. 15 whose combined weekly earnings were $56,393,962. The employUnited States of Am 103.2 104.4 104.8 88.4 -1.1 +16.7 ment reports received from these co-operating establishments cover approxiCanada 106.1 107.6 101.1 -1.1 +6.1 107.3 mately 50% of the total wage earners in all manufacturing industries of the United Kingdom _ _ 102.8 102.6 103.0 101.1 +0.2 +1.7 France b 383 384 386 391 -2.0 -0.3 country. Germany .96.1 95.7 94.9 93.9 +0.4 +2.3 Thirty of the 89 manufacturing industries surveyed reported increased Italy *275.2 277.0 280.7 301.9 -0.6 -8.8 employment in November 1933 compared with October, and 24 industries -Innan 0124 n ..120 2 127 2 121£ -1 A _i_il 4 reported increased payroll totals. The most pronounced increases in em•Preliminary. a Revised. b July 1914=100.0, end of month. Indices used: ployment and payrolls over the month were shown in the dyeing and United States of America, Annalist; Canada, Dominion Bureau of Statist cs: United Kingdom, Board of Trade; France, Statistique Generale; Germany. Statistische finishing textiles industry, in which the termination of the strike which had Reichsamt; Italy, Milan Chamber of Commerce; Japan, Bank of Japan. been in progress for a number of weeks resulted in the return to employIN• ment of large numbers of The beet sugar industry, reflecting Business and Agricultural Conditions in Minneapolis seasonal activity, reported aworkers. gain of 16.2% in employment. The iron and Federal Reserve District-Very Small Decline Noted steel forging's industry reported a gain of 8.4% and the typewriter industry in Business from October to November. reported a gain of8% in number of employees. The agricultural implement reported an increase of 7.2% in employment; the machine too "The volume of business in the Ninth (Minneapolis) industry industry, 6.7%; the engine-tractor industry, 5.5%; and the airDistrict apparently declined by a very small amount in craft industry, 5.4%. The radio -turbine industry and the silverware industry Increases reported in November from the level of October, after allowance for employment of 4.2% and 4.0%, respectively. Other in which large number of wage earners are employed and in purely seasonal changes," stated the Federal Reserve Bank industries which increased employment was reported in November were cigars and of Minneapolis. "The adjusted index of bank debits at cigarettes, newspapers, book and job printing, glass, petroleum refining, and chemicals. The most pronounced decreases in employment between October and November were reported in the following industries: Plumbers' supplies (15.7%). stamped and enameled ware (14.5%), cottonseed oilcake-meal (13.2%), millinery (13.1%). boots and shoes (12.9%), women's clothing (12.2%), automobiles (11.8%). and woolen and worsted goods (11.2%). The declines in a number of these industries were of seasonal character. Substantial declines also were reported in such industries of major importance as: Furniture, men's clothing, knit goods, saw mills, leather, cotton goods, shipbuilding, and iron and steel. INDEX NUMBERS OF EMPLOYMENT AND PAYROLL TOTALS IN MANUFACTURING INDUSTRIES. (12-Month Average 1928=100). Payroll Totals. Employment. Manufaauring Industries. 1932. Nov. General index Food and kindred products Baking Beverages Butter Confectionery Flour Ice cream Slaughtering and meat packing_ Sugar. beet Sugar refining, cane Textiles and their products Fabrics Carpets and rugs Cotton goods Cotton small wares Dyeing and finishing textiles_ Hats, fur-felt Knit goods Silk and rayon goods Woolen and worsted goods_ _ Wearing apparel Clothing. men's Clothing, women's Corsets and allied garments_ Men's furnishings Millinery Shirts and collars Iron and steel and their products _ not including machinery Bolts, nuts, washers, and rivets Cast-Iron pipe Cutlery (not including silver and plated cutlery) and edge tools Forginga, Iron and steel Hardware Iron and steel Plumbers' supplies Steam and hot water heating apparatus and steam fittings. Stoves Structural & ornamental metal work Tin cans and other tinware...... Tools(not including edge tools, machine tools, files & saws)Wirework Machinery, not including transportation equipment Agricultural implements Cash registers, adding machines and calculating machines_ _ _ Electrical machinery,apparatus and supplies Engines, turbines, tractors and water wheels Foundry dr machineshop prodls Machine tools Radios and phonographs Textile machinery and parts Typewriters and supplies Non-ferrous metals & their prod'ts Aluminum manufactures Brass, bronze & copper prodls Clocks and watches and timerecording devices Jewelry Lighting equipment Silverware and plated ware_ _ _ Smelting and refining: copper, lead and zinc Stamped and enameled ware--Transportation equipment Aircraft Automobiles Cars, electric & steam railroad_ Locomotives Shipbuilding Railroad repair shone Electric railroad Steam railroad Lumber and allied products Furniture Lumber, millwork Lumber, sawmills Turpentine and rosin Stone, clay and glass products_ Brick, tile and terra cotta Cement Glass Marble. granite, slate di other products Pottery Leather and its manufactures.... Boots and shoes Leather Paper and printing Boxes, paper Paper and pulp Printing and publishingBook and lob Newspapers and periodicals Chemicals Chemicals Cottonseed, oil, cake and meal_ Druggists' preparations Explosives Fertilizers Paints and varnishes Petroleum refining Rayon and allied products Soap Rubber products Rubber boots and shoes Rubber goods,other than boots, shoes, tires and inner tubes_ _ Rubber tires and Inner tubes.. Tobacco manufactures Chewing and smoking tobacco and snuff Cigars and cigarettes 4419 Financial Chronicle Volume 137 1933. Oct. 1933. Nov. 1932. Nov. 1933. Oct. 1933. Nov. 59.4 74.0 71.4 38.6 53.6 50.3 85.4 79.4 88.0 95.7 92.6 83.0 64.1 86.2 238.5 76.4 73.0 74.9 55.1 75.5 82.3 78.1 69.4 89.1 60.8 71.3 68.3 69.7 64.8 99.7 73.2 64.1 65.3 103.7 89.0 150.9 106.0 102.4 96.2 76.8 110.5 248.8 93.2 87.9 93.6 82.8 102.6 99.8 75.7 76.8 96.6 85.2 99.6 74.3 77.1 71.7 95.5 67.1 69.6 73.4 101.5 88.2 136.6 102.7 98.1 96.0 69.8 107.8 289.1 91.8 83.7 90.3 77.0 98.8 90.2 92.6 71.0 92.4 65.3 88.4 68.1 71.3 83.0 98.2 66.1 60.5 69.7 66.7 66.2 51.4 76.7 64.9 67.7 50.4 66.9 156.3 62.5 47.4 51.3 33.2 51.6 57.5 54.0 42.9 86.1 39.6 49.7 39.8 38.0 38.4 77.0 49.1 37.6 43.7 81.7 72.5 127.7 80.7 80.1 75.3 57.5 87.0 163.0 68.0 67.7 74.4 65.7 86.4 77.4 54.0 57.6 79.5 50.5 78.1 54.5 55.3 54.5 80.6 48.9 43.9 62.8 80.4 72.3 116.6 76.8 73.8 74.5 52.0 85.7 204.1 69.1 61.2 69.9 54.3 81.4 67.0 68.4 48.9 74.9 49.3 66.0 44.1 46.2 40.4 70.5 44.8 35.5 55.9 53.2 61.4 30.1 73.2 88.8 35.1 70.9 85.9 33.4 26.0 34.4 14.3 47.3 58.8 19.0 42.9 57.9 19.4 64.2 53.1 49.9 53.2 55.5 79.0 76.7 55.3 76.4 81.6 78.5 83.1 55.0 73.8 68.8 42.3 26.3 24.5 23.0 31.8 54.3 49.6 20.6 49.5 46.5 54.3 54.0 30.5 43.6 34.3 38.4 55.0 44.6 82.7 45.4 80.3 22.3 31.7 27.8 56.4 27.8 50.4 40.3 73.2 51.2 85.9 50.0 84.9 23.5 41.7 33.0 51.5 32.6 50.9 61.8 90.1 83.1 128.2 83.3 122.5 35.7 81.3 54.0 103.9 53.8 92.1 45.8 22.6 84.0 37.7 64.1 40.4 26.7 15.7 43.6 31.1 43.5 35.2 63.4 85.7 86.7 45.6 67.4 70.4 49.1 62.9 62.6 32.5 46.9 46.6 39.7 44.3 30.5 77.7 52.9 59.2 .54.4 48.3 51.9 55.4 60.4 48.0 162.4 90.0 81.2 73.0 64.2 72.4 58.5 59.4 51.2 169.3 89.5 87.7 70.1 63.0 89.8 23.6 23.0 18.3 58.4 32.2 32.7 36.1 30.5 31.0 36.4 37.8 33.1 125.2 69.3 61.3 5L4 43.6 49.5 38.6 36.5 36.2 131.9 68.1 65.2 50.2 42.1 46.5 43.5 42.7 67.5 64.0 52.6 47.8 84.1 77.5 52.7 44.6 85.5 80.6 32.5 29.2 48.5 43.4 43.7 34.7 59.4 55.2 44.6 33.0 62.1 56.7 57.0 82.9 42.1 183.5 41.5 21.1 14.1 86.7 50.2 65.6 49.0 38.1 47.4 33.9 35.1 44.8 43.7 27.4 41.0 57.9 86.3 83.1 56.9 247.3 58.2 21.4 20.3 79.1 .51.0 63.2 50.1 51.8 84.1 40.3 49.0 64.6 51.7 31.5 38.0 80.6 86.7 71.0 51.3 260.7 51.3 21.9 20.2 76.1 50.8 64.0 49.8 49.1 59.0 38.7 47.0 62.8 50.4 28.9 37.8 81.7 37.5 39.2 27.7 186.3 26.9 11.7 9.7 47.9 39.1 52.5 38.1 20.8 25.8 20.0 18.1 36.8 25.9 11.5 23.2 40.2 55.9 55.9 41.2 222.6 42.2 12.8 13.2 57.8 44.7 50.0 44.3 33.2 41.7 24.6 31.0 55.8 32.8 14.7 22.9 59.6 55.2 53.4 36.4 239.3 36.3 12.7 13.5 57.0 42.1 51.7 41.4 29.8 24.2 23.2 29.0 52.3 31.0 13.4 21.2 59.2 46.6 62.7 71.9 72.0 71.7 80.1 74.1 75.0 454 74.7 84.1 82.5 90.5 90.5 92.6 94.8 41.0 74.2 74.8 71.8 86.8 90.2 88.4 93.1 28.9 37.8 42.4 39.0 54.1 65.3 61.6 50.3 27.3 50.2 62.0 58.5 74.1 70.8 76.0 68.3 22.5 48.1 51.7 46.5 69.8 70.3 72.2 62.0 71.8 97.9 76.0 85.3 54.7 71.9 79.0 46.0 67.1 61.5 142.8 98.3 64.6 55.2 73.5 104.1 98.7 120.9 62.9 80.8 105.9 72.1 80.4 72.7 197.3 116.7 89.1 68.6 74.5 105.8 98.1 121.9 54.6 82.4 106.3 72.0 77.8 73.4 197.7 112.1 87.1 69.9 57.0 85.7 60.8 61.6 47.0 71.8 54.1 30.8 5L7 52.0 120.2 83.0 40.2 4.5.2 57.8 85.3 77.8 87.0 60.3 8c.3 77.4 48.0 61.0 59.8 172.4 92.6 62.8 61.7 59.0 87.2 76.9 86.3 50.9 81.8 74.6 44.2 58.9 80.1 172.9 91.6 58.0 61.7 85.4 58.8 74.8 120.9 82.2 72.3 117.2 79.8 73.9 58.0 32.8 55.7 82.6 56.2 59.0 76.9 50.6 57.8 89.2 72.9 91.7 69.8 89.8 71.9 71.8 53.7 77.0 56.8 72.3 56.0 Non-Manufacturing Industries. Eight of the 16 non-manufacturing industries surveyed monthly by the Bureau of Labor Statistics reported increased employment in November as compared with October, and five industries reported increased payroll totals. The most pronounced gains in employment over the month interval were in the coal mining industries. The anthracite mining industry reported 7.3% more employees in November than October, coupled, however, with sharply decreased earnings due to the All-Saints Day and Armistice Day holidays in the pay period reported. The bituminous coal mining industry, reflecting seasonal demands and the settlement of strikes in certain areas, reported a gain of 10% in employment between October and November. Employment in the crude petroleum producing industry increased 2.3% over the month interval. Reports supplied by 18.666 retail trade establishments showed a gain of 2.2% in employment between October and November. Under this retail classification, the group composed of department-variety-general merchandise stores and mail order houses showed a gain of 3.7% between October and November. The group of grocery stores and meat markets reported a decline of 0.1% and the combined total of the remaining reporting retail establishments showed a small loss in employment. The gains in the three industries comprising the public utilities group (telephone and telegraph, power and light, and electric-railroad and motor bus operation) ranged from 0.3% to 0.5%, and the banks-brokerage-insurance-real estate group showed an increase of 0.2% in employment from October to November. The most pronounced percentage decline over the month interval (45.1%) was a seasonal decrease in employment in the canning and preserving industry, which regularly registers sharp declines at this season of the year. The building construction industry reported a decrease of 7.3% in employment. This decline reflects the change in employment based on reports supplied by 11.076 contractors engaged on public and private projects not aided by Public Works funds. The dyeing and cleaning industry reported 6.8% fewer employees in November than in October. The quarrying and non-metallic mining industry and the laundry Industry reported decreases in employment of 3.9% and 3.5%, respectively. The hotel industry reported a loss in employment of 1.6% over the month interval and the decreases in the two remaining industries (wholesale trade and metalliferous mining) were 0.2 of 1% or less. The 16 non-manufacturing industries surveyed, together with the percentages of change over the month interval and the index numbers of employment and payrolls, where available, are shown in the table below. The monthly average for the year 1929 was used as the index base or 100 in computing the index numbers of these non-manufacturing industries, as information for earlier years is not available from the Bureau's records. INDEXES OF EMPLOYMENT AND PAY-ROLL TOTALS IN OCTOBER AND NOVEMBER 1933,TOGETHER WITH PERCENTAGES OF CHANGE BETWEEN OCTOBER AND NOVEMBER 1933, IN NON-MANUFACTURING INDUSTRIES. Group. Indexes of Indexes of Payroll Totals. Employment. (As.1929=100) Per (Av.192100) Per Cent Cent of Nov. Oct. of Nov. Oct. Change. 1933. 1933. Change. 1933. 1933. 56.9 Anthracite mining 68.0 Bituminous coal mining 40.7 Metalliferous mining Quarrying & non-metallic mining_ 53.2 70.6 Crude petroleum producing 68.7 Telephone and telegraph 82.2 Power and light Electric railroad and motor bus operation and maintenance..... 70.6 83.5 Wholesaletrade 89.6 Retail trade 77.0 Hotels 126.3 Canning and preserving 78.0 Laundries 88.4 Dyeing and cleaning Banks, brokerage, insurance and 99.4 real estate Building construction Indexes not available. +7.3 +10.0 -0.2 -3.9 +2.3 +0.3 +0.5 61.6 44.1 25.9 31.2 50.1 87.0 76.2 47.8 50.7 25.6 28.3 50.3 67.7 74.5 -22.5 +15.1 -1.3 -9.3 +0.5 +1.0 -2.2 +0.5 71.0 -0.1 83.4 +2.2 91.6 --1.8 75.8 69.3 -45.1 -3.5 75.3 -6.8 82.4 59.8 66.0 72.3 56.2 87.1 59.7 60.6 59.4 64.1 72.6 55.2 50.8 57.9 55.4 --0.7 --2.9 +0.4 --1.7 --41.7 --2.9 --8.8 +0.2 -7.3 84.7 86.1 +1.7 -7.5 61.0 74.8 40.6 51.1 72.2 68.9 82.6 99.6 Changes in Employment, Payrolls and Operating Time in Manufacturing Industries of Pennsylvania and Delaware During November-Employment in Both States Below Month Previous. The number of wage earners employed in the manufacturing industry of Pennsylvania showed a decline of 1% and the amount of wages paid almost 5% from October to November, according to indexes compiled by the Philadelphia Federal Reserve Bank from reports of 1,751 establishments which in October employed nearly 392,000 workers whose wage earnings averaged $6,784,000 a week. This drop was largely seasonal and it followed a sharp, steady increase for a period of seven months. Under date of Dec. 15 the Bank further noted: The index of employment in November was 76. relative to the 1923-25 average, or 17% higher than in the like month last year. The payroll Index was over 52. or 34% higher than a year ago. In spite of the decreases in the month, all manufacturing groups, except clothing, employed considerably more workers and had larger payrolls this year than last. The largest gains over a year ago occurred chiefly in those industrial groups which manufacture durable or capital goods, such as heavy metal products, construction materials and products of chemical processes. Decreases between October and November were quite general, as is to be expected,in both employment and payrolls. Increases in a few instances were due mainly to the usual seasonal influences or to some special circumstances such as an adjustment of labor difficulties. Of the industrial areas in Pennsylvania having diversified manufacturing. Allentown-Lehigh Lewistown and Wilkes-Barre showed gains in employment and wage disbursements, while most of the remaining 17 regions reported decreases. Operating time has declined from a relatively high level reached in August, Indicating a reduction in productive activity. The number of employeehours actually worked in November was curtailed by nearly 5%, as measured by reports from about 75% of co-operating manufacturers. Compared with a year ago, however, the total number of employee-hours actually worked in November continued 21% larger. Returns from Delaware factories also show that there was a decrease of 1% in employment, over 3% in payrolls and almost 5% in working time. In comparison with a year ago, the November index of employment at 94 was 30% higher, and that of wage payments at 66 was 33% higher. 4420 Financial Chronicle FACTORY EMPLOYMENT AND PAYROLLS BY INDUSTRIAL AREAS. Prepared by the Department of Research and Statistics. Philadelphia Federal Reserve Bank from reports collected by this Bank in co-operation with the United States Bureau of Labor Statistics and the Pennsylvania Department of Labor and Industry. (Industrial areas are not restricted to corporate city limits but comprise one or more counties.) Payrolls. Employment. P. C. Change P. C. Change Nov. Compared with Nov. Compared with 1933 1933 Nov. Index. Oct. Nov. Index. Oct. 1933. 1932. 1933. 1932. Allentown-Lehigh (3 counties) Altoona (2 counties) Chambereburg (3 counties) Clearfield (4 counties) Erie (2 counties) Harrisburg (3 counties) Johnstown (3 counties) Kane-011 City (5 counties) Lancaster (I county) Lewistown (3 counties) Philadelphia (5 counties) Pittsburgh (8 counties) Pottsville (2 counties) Reading-Lebanon (2 counties) Scranton (5 counties) Sharon-Newcastle (2 counties) Sunbury (4 counties) Wilkes-Barre (3 counties) Williamsport (5 counties) Wilmington (1 county) York-Adams (2 counties) 67.1 +10.7 +9.8 78.6 -3.5 +5.1 66.0 -2.1 +8.1 70.1 -6.0 +19.4 71.1 +30.2 54.1 +8.4 40.6 +23.0 56.6 -1.2 +31.9 98.7 -7.4 +33.4 61.9 +0.5 +50.6 79.3 -2.8 +25.3 74.7 -0.7 +20.5 74.4 -0.4 +15.5 75.8 -3.3 +6.9 77.6 -3.1 +23.6 55.5 -2.8 +27.0 70.2 -8.4 -21.1 104.1 +0.3 +11.8 89.7 -1.5 +96.7 96.8 -0.7 +34.5 81.3 +0.5 +33.5 48.4 +3.4 +;0.5 47.3 ---4.4 +23.5 41.5 --3.3 +34.3 48.9 ---1.8 +25.7 47.9 +0.2 +46.0 +33.5 37.9 25.1 -16.1 +84.6 +36.2 39.9 73.6 -9.6 +47.8 41.0 +2.5 +58.9 59.8 --5.4 +33.8 45.7 +58.0 48.1 +30.0 54.9 --7.7 +26.8 64.4 ---5.2 +21.3 35.7 --6.5 +84.5 46.7 --12.7 -8.3 77.5 +3.3 +24.4 56.0 --1.1 +110.5 74.9 ---2.6 +38.2 71.2 --2.6 +51.8 FACTORY EMPLOYMENT AND PAYROLLS IN DELAWARE-COMPARISON WITH THE PREVIOUS MONTH BY INDUSTRY. (Prepared by the Department of Research and Statistics of the Federal Reserve Bank of Philadelphia.) Dec. 23 1933 November1933 Compared to November 1932. New England Middle Atlantic East North Central West North Central South Atlantic East South Central West South Central Mountain Pacific United States total 11 Months 198:1 Compared to 11 Months 1932. 100 94 97 102 99 106 103 103 98 92 83 86 88 85 95 89 82 83 97 86 These figures, prepared by the Life Insurance Sales Research Bureau, represent the experience of 79 companies having in force 93% of the total ordinary legal reserve life insurance outstanding in the United States. National Industrial Conference Board Reports Notable Growth of Employee-Representation Plans in Recent Months-Denies Having Issued Previous Report on Works Council Method of Collective Bargaining. The following letter, sent to us by H. B. Browne, of the National Industrial Conference Board, Inc., under date of Dec. 13, is self-explanatory: NATIONAL INDUSTRIAL CONFERENCE BOARD, INC., 247 Park Avenue, New York, N. Y. Dec. 13 1933. Per Cent Change November 1933 it Financial Chronicle." The Editor, the "Commercial No. Compared with October 1933. of Dear Sir: My attention has been called to a statement on page 3603 of Plants EmployPayrolls. Employee- ' the Nov. 18 issue of your publication, purporting to come from the National went. hours.a Industrial Conference Board, and dealing with the extent of collective bar53 gaining through employee representation in the United States. -3.3 -1.0 Allnumufacturingindustries 9 Metal products --4.1 -0.9 -3.0 This statement implies that the Board issued a report on Nov. 9 dealing 5 --2.5 -3.3 +1.8 Transportation equipment with this subject. The Board issued no such report. Furthermore, the state• +4.1 a --2.2 -2.7 Textile products ment contained in the first paragraph of the quoted matter is incorrect. It -4.2 -2.7 8 Foods and tobacco --3.4 4 +16.1 -4.5 Stone. clay and glass products +17.3 compares the total number of wage,earners shown to be dealing with em5 -11.0 -10.8 Lumber products --10.6 ployers through plans of employee representation in our report, "Collective 5 Chemical products --9.1 -7.5 Bargaining Through Employee Representation," issued in June 1933, which Leather and rubber products -1.9 -4.0 8 Paper and printing -2.3 6 -10.8 includes all types of manufacturing and mining industries as well as public utilities and railroads. It then proceeds to compare with this figure the a Based on reports from 49 plants. membership of the American Federation in only manufacturing and mining FACTORY EMPLOYMENT AND PAYROLLS IN DELAWARE-COMIndustries. This is palpably inaccurate and unfair, in that a part of one PARISON WITH THE PREVIOUS YEARS FOR ALL MANUFACTURING INDUSTRIES. group is compared with the whole of another group, to arrive at a conclusion (Prepared by the Department of Research and Statistics of the Federal Reserve that both groups are approximately equal. Bank of Philadelphia.) I am bringing this to your attention, not in a spirit of unfriendly criticism, but because the National Industrial Conference Board is jealous of its reputaEmployment. Payrolls. tion for accuracy and it dislikes being placed in a position of making a grossly inaccurate statement. The statement in your magazine undoubtedly 1933 1933 Indexes. Compared Indexes. Compared was based on the release of some press bureau, which improperly attributed with 1932 with 1932 to the Conference Board statements that it has never made. 1931. 1932. 1933. Per Cent. 1931. 1932. 1933. Per Cent. For your information, I will say that the Conference Board has recently 80.0 74.1 -7.4 61.1 January--87.8 81.6 49.6 completed an extensive survey to discover the extent to which the various -18.8 February___ 88.1 79.2 75.2 -5.1 84.4 62.9 51.4 -18.3 methods of conducting employer-employee relations are in effect and an 72.1 March 76.5 86.4 88.7 -5.8 60.5 47.0 -22.3 official release from the Conference Board covering the results of this survey April 75.4 70.3 87.5 -6.8 84.3 55.8 45.0 -19.4 73.2 73.8 will shortly reach you. May 87.0 85.8 +0.8 52.2 51.2 -1.9 72.0 80.0 June 86.2 +11.1 82.5 51.4 56.9 +10.7 Very truly yours, July August September _ October November_ _ December_ 84.9 83.8 81.7 75.0 75.5 76.6 70.5 68.8 72.8 71.6 72.2 74.2 Average 83.6 73.9 87.9 94.2 98.1 95.1 94.2 +24.7 +36.9 +34.8 +32.8 +30.5 72.8 72.9 67.8 64.5 57.8 59.7 48.6 47.3 59.7 50.9 49.4 52.2 75.0 53.6 66.0 64.9 67.7 67.7 65.5 +35.8 +37.2 +33.5 +33.0 +32.6 Volume of Sales of Life Insurance During 1933 Estimated To Be Below 1932-Trend During Past Months Steadily Upward. The Life Insurance Sales Research Bureau at Hartford, Conn., under date of Dec. 19, stated that "in reviewing the year 1933 it is encouraging to note the trend in life insurance. Although the volume for the year will be somewhat below the 1932 figure the trend in sales during the past months has been steadily upward. At the close of the first quarter of 1933 reports showed that sales were 74% of last year's volume; by the end of six months this percentage had increased to 79%. During the summer, conditions continued better and at the close of September sales had reached 84% of the volume of the nine months of 1932. Since then the trend has been steadily upwards and estimating for December it is felt the yearly volume will be 87% of the 1932 new business." Continuing, the Bureau said: The 1933 volume of life insurance, although considerably smaller than that of the prosperous years before 1929, nevertheless represents an increasing proportion of the country's income. Fifty years ago annual sales totalled $200.000,000; more than twice this amount was sold in every month of 1933. The large amount of money being invested in life insurance is more easily understood when we consider that in every working day in 1933 the American people purchased an average of over $23,000.000 of new life insurance protection. This figure represents ordinary life insurance only and does not include the thousands of dollars being invested in annuities. The figures below are interesting in revealing the decided upward trend of insurance during the year. Over half the companies reporting figures for November showed a gain over last November. In every section of the country the experience for the month is considerably better than for the 11 months of the year which is, of course, an indication of improvement. As life insurance is an excellent reflector of general economic conditions, this gain in insurance indicates generally better business conditions. NATIONAL INDUSTRIAL CONFERENCE BOARD, INC., H. F. BROWNE, By Manager, Department of Plant Management. The article referred to in the above came to us from a New York press agency, and was published by us just as received. We had no hand in preparing it. The Conference Board's own survey mentioned in the last paragraph of the above letter is contained in the following release issued by the Board on Dec. 16: Notable growth of employee-representation plans in recent months is indicated by the results of a comprehensive survey of employment relations just completed by the National Industrial Conference Board. The purpose of the survey was to learn how generally and in what manner wage earners are availing themselves of the right to bargain collectively through representatives of their own choosing, as provided in the NIRA. On the basis of reports from 3,314 manufacturing and mining concerns, which employ 2,585,740 wage earners, or about one-fourth of the total number employed In these industries, it was found that 45.7% of the workers deal with their employers individually, 45.0% through plans of employee representation, and 9.3% through organized labor unions. Over two-thirds of the 3,314 companies that replied to the Conference Board's inquiry deal individually with their employees, but many of these concerns are comparatively small. Consequently the proportion of wage earners classed under individual bargaining is considerably smaller than the proportion of companies following this policy. EMployee-representation plans, on the other hand, are found most frequently in large companies, where the need of an agency for collective negotiation with the management is greatest. Labor union agreements are most prevalent in concerns of medium size. The number of employee-representation plans has increased substantially sipce the passage of the NIRA. Of the plans for collective bargaining reported to the Board, 61.3% of the employee-representation plans and 41.8% of the labor union agreements had been adopted since June 16 1933, when the Recovery Act went into effect. The actual figures for the number of plans established since that date are 400 employee-representation plans and 174 labor union agreements. The apparently wide use of employee representation indicated by the survey does not conflict in any way with the claims of greatly increased union membership, the Conference Board points out. A worker may be a union member without necessarily dealing with his employer through the union. Many union members are working in plants that have no agreement with a union, and this was a survey of the relative popularity of methods of dealing with the employer and not a census of membership or non-membership in organized labor unions. Financial Chronicle Volume 137 In summarizing the results of the survey, the Conference Board says: Two definite conclusions may be drawn. In the first place, it is clear that individual bargaining has not in any way been eliminated by Section 7 (a) of the Recovery Act. There are too many companies in which this method has proved satisfactory over a long period of years to permit of its elimination. Many of these companies, moreover, are not of sufficient size to call for a representation plan. It seems likely, therefore, that individual dealing will remain the basis of employer-employee relations in a majority of industrial establishments, especially since a large proportion of such establishments is in the small-size class. The second general conclusion is that employee-representation plans have expanded greatly, both in number of companies affected and, particularly, in number of employees covered. Whether or not 45% of all wage-earners in manufacturing and mining industries deal with employers through such agencies, as is indicated in this study, or whether, if data for all wage-earners were available, the proportion would be found to be somewhat smaller, it is obvious that large numbers of employees have elected to bargain collectively by means of such plans. Weekly Electric Output Continues to Rise. According to the Edison Electric Institute, the production of electricity by the electric light and power industry of the United States for the week ended Dec. 16 1933 was 1,644,018,000 kwh., the highest for any week since Oct. 7 last. This compares with 1,619,157,000 kwh. in the week ended Dec. 9 1933, 1,553,744,000 kwh. in the week ended Dec. 2 1933 and 1,563,384,000 kwh.in the week ended Dec. 17 1932. Of the seven geographical areas reporting, all showed gains for the week ended Dec. 16 1933 as compared with the corresponding period last year, with the exception of the Southern States region. As compared with the percentage changes for the week ended Dec. 9 as compared with the same week in 1932, the New England and West Central regions showed increases. The Institute's statement follows: PER CENT CHANGES. Major Geographic Divisions. 2 Wks. Ended Week Ended Dec. 2 1933. Nov. 18 1933. 1Veek Ended Dec. 16 1933. Week Ended Dec. 11 1933. +7.1 +4.1 +8.2 -0.9 +1.0 +2.4 +14.6 +6.4 +6.2 +8.8 +0.5 +3.2 +0.8 +21.0 +6.8 +3.0 +8.9 -0.4 +4.7 +0.5 +30.3 +8.4 +4.6 +8.7 -3.9 +3.0 +1.9 +26.6 +5.2 +6.6 +5.9 +5.6 New England Middle Atlantic Central Industrial Southern States Pacific Coast West Central Rocky Mountain Total United States. Arranged in tabular form, the output in kilowatt hours of the light and power companies of recent weeks and by months since and including January 1930, is as follows: Week ofMay 6 May 13 May 20 May 27 June 3 June 10 June 17 June 29 July 1 July 8 July 15 July 22 July 29 Aug. 5 Aug. 12 Aug. 19 Aug 26 Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28 Nov. 4 Nov. 11 Nov. 18 Nov. 25 Dec. 2 Dee. 9 Dec. 16 Dec. 23 Dec. 30 1933. Week of- 1.435.707.000 May 7 1,468,035.000 May 14 1.4830)0.001) May 21 1.493.023,000 May 28 1,461,488,000 June 4 1,541,713.000 June 11 1,578,101.000 June 18 1,598,136.000 June 25 1,655.843,000 July 2 1.538,500.000 July 9 1.648.339.000 July 16 1,654.424,000 July 23 1.661.509.000 July 30 1,650,013.000 Aug. 6 1,627.339,000 Aug 13 1.650,205.000 Aug. 20 1.630.304.000 Aug 27 1,637,317.000 Sept. 3 1,582,742,000 Sept. 10 1.663,212,000 Sept 17 1,638,757.000 Sept.24 1,652,811.000 Oct. 1 1,646,136,000 Oct. 8 1.618.948,000 Oct. 15 1,618.795,000 Oct. 22 1,621.702.000 Oct. 29 1.583,412.000 Nov. 5 1,616,875,000 Nov. 12 1.617,249.000 Nov. 19 1,607.546.000 Nov. 26 y1,553,744.000 Dec. 3 1,619.157.001 Dec. 10 1,614,018.000 Dec. 17 Dec. 24 Dec. 31 1932. 1931. Week of- 1,429,032.000 May 9 1,436,928,000 May 16 1,435,731.000 May 23 1,425,151,000 May 30 1,381,452,000 June 6 1,435,471,000 June 13 1,441.532.0011 June 20 1,440.541.000 June 27 1,456,961,000 July 4 1,341,730,000 July 11 1,415,709.000 July 18 1.433,990.000 July 25 1,440,386,000 Aug. 1 1,4211,986,000 Aug. 8 1,415.122.000 Aug. 15 1.431.910.000 Aug. 22 1,436,440,000 Aug. 29 1,464,700,000 Sept. 5 al.423.977.000 Sept. 12 1,476,442.000 Sept. 19 1.490,863.000 Sept. 26 1,499,459,000 Oct. 3 1,506,219.000 Oct. 10 1.507,503.000 Oct. 17 1,528,145,000 Oct. 24 1,533,028.00U Oct. 31 1,525,410.000 Nov. 7 1,520,730,000 Nov. 14 1,531.584.000 Nov. 21 y1,475,268.000 Nov. 28 1.510,337,000 Dee. 5 1.518,922.000 Dee. 12 1,563,384,000 Dec. 19 1,554,473.000 Dec. 26 1,414,710.000 Jan. 2 1933 Over 1932. 1.637,296,000 0.5% 1.654.303,000 2.2% 1.644.783.000 3.3% 1,601.833.000 4.8% 1,593,662.000 5.8% 1,621.451,000 7.4% 1,609,931,000 9.5% 1,634,935,000 10.9% 1.607.238.000 13.7% 1,603,713,000 14.7% 1,644,638,000 16.4% 1.650,545.000 15.4% 1,644.089,000 15.4% 1,642,858,000 15.6% 1,629,011,000 15.0% 1,643,229.000 15.2% 1.637.533.000 13.5% 1,6e5.623.000 11.8% 1.582.267.000 11.1% 1,662.660.000 12.7% 1,660.204,000 9.9% 1,645.587 000 10.2% 1,653.360.000 9.3% 1,656,051,000 7.4% 1,646.531,000 5.9% 1,651.792,000 5.8% 1,628.147.000 3.8% 1,623.151,000 8.3% 1.655.051.000 5 6% 1,599,900.000 } 5.9% 1,671,466.000 1.671,717.000 6.6% 1,675,653.000 5.2% 1.564.652,000 1.523.652.000 y Includes Thanksgiving Day. x Corrected figure. DATA FOR RECENT MONTHS. Ilforals of- 1932. 1933. 1931. 1930. 1933 Under 1932. - 6,480,897.000 7,011,736.000 7.435.782 000 8.021,749.000 7.6% January 5,835.263,000 6,494,091.000 6,678.915,000 7.066.788.000 10 1% February 6.182,281.000 6,771.684.000 7,370,687.000 7.580,335.000 87% March 6,024.855.000 6.294,302.000 7,184.514.000 7.416,191.000 4.3% April 6.532.686.000 6,219.559,000 7,180.210.000 7.494.807.000 25.0% May 6,809.440.000 6,130,077,000 7.070,729.000 7,239.697.000.11.1% June 7.059,600.000 6,112,175.000 7.286.576.000 7,363.730.000 015.5% July 7,218,678,000 6,310,667.000 7,166,086.000 7.391,196.000(414.4% August 6,931,652.000 6,317.733.000 7,099.421.000 7,337,106,000 a9.7% September 7,091,412,000 6,633,86.5,000 7,331.380.000 7,718.787,000 a6.9% October 6,507.804.000 6.971,644.000 7.270.112,000 November 6,638.424,000 7.288.025.000 7,566,601.000 December. Total _ 77,442,112,000 86,063,069.000 89.467.099.000 a Increase over 1932. Note.-The monthly figures shown above are based on reports covering approximately 92% of the electric light and power industry and the weekly figures are based on about 70%. 4421 of Business Conditions by Conference of Statisticians in Industry-Production and Trade Fell Further During November but Showed Some Resistance to Downward Trend in First Half of December. Further declines in production and trade were registered in November, although some indications of resistance to the downward movement became apparent in the first half of December, according to the current monthly report of the Conference of Statisticians in Industry of the National Industrial Conference Board. Department store trade declined in November,although an increase in sales is usual, the report added. Manufacturing employment fell off for the first time since March, because of seasonal curtailment of operations in several major industries. Issued under date of Dec. 18 the report further said: Review Public works construction again was the only Important field of increased activity in the last six weeks. Industrial production as a whole declined more than seasonally in November. Automobile output declined sharply In November, but production of next year's models be an to be felt in the first half of December. Steel and iron production was contracted more than seasonally in November, but has reacted upward this month to date. Bituminous coal output was stepped up moderately. Electric power production continued to decline in the last six weeks, when slight seasonal gains were to be expected. The total distribution of commodities in November was not up to seasonal expeceations. While freightshipments declined under October by an amount slightly less than seasonal, department store sales fell off, contrary to expeztations for this time of the year. Shipments of merchandise and miscellaneous commodities by rail declined 11% In November as compared with October, and shipments of raw materials showed a similar decrease. Department store sales fell off in dollar value almost 2% during the month, but were roughly 2% above the total In November of last year. Department store prices advanced less than one half of 1% In November, after moving up rapidly since April. The November average was 23.8% above the level of April and 19% above that of one year ago Prices of commodities at wholesale showed a slight net decline in November. During the month as a whole prices of hides and leathers and of textile produces fell off measureably. Farm products advanced and declined again In week-to-week movements during the month, although the average level for the month was above that of October. Fuels. chemicals. building materials, and housefurnishing goods continued to advance moderately In November, while metals and metal products, foods, and miscellaneous items were steady. Prices received by farmers showed a slight gain in November. while prices paid by them for commodities bought moved up in about the same measure. As a result, there was practically no change in the purchasing power of farm products between the two months. At the end of November the ratio of prices received by farmers to prices paid was 41% under the pre-war average. The cost of living in November showed the first decline since April. The drop of 0.3% left the average for the month at a level 9% above the April low and 2.5% above a year ago. The advance In October over the preceding month was only 0.1%. A slight decline in food prices at retail In November, coupled with a fall in rents, more than offset slight gains ln other items in the wage-earner's budget of living costs. The number of commercial failures Increased 2.6% in November, to a total of 1.237 reported by Dun & Bradstreet. Liabilities Involved, totaling $25.353.000, fell off 17% during the month after a sharp advance in October. The number of failures In November was 40% under the total one year ago. while liabilities were 53% below. Employment in the retail trade field showed the usual seasonal increase In November, and some gains in employment have resulted from extension of the public and civil works programs. On the other hand, however, employment in manufacturing industry In November showed the first monthly decline since March, according to a preliminary estimate by the National Industrial Conference Board. Decreased employment in several major industries snore than offset gains In employment in others. Hourly earnings moved up slightly, but weekly earnings per employed worker declined measurably with a reduction In the length of work week. World Trade Gain 3% in October-League of Nations Says This Was Partly Seasonal, But Total Was 12% Above April's-Americans Tour Most-Their Net Outlay Last Year Put at $375,000,000. From Geneva a message to the New York "Times" from Clarence K. Streit Dec. 18 said: The League of Nations bulletin of statistics for December, issued to-day, shows a further Increase in the value of world trade. In October. It was 12% higher than in April and 3% higher than in September. The latter rise was partly seasonal. Despite this Improvement the trade was still only 36% of the 1929 monthly average. "Nevertheless," the League communique states, "while In previous years of depression the value of world trade was Invariably lower In autumn than in spring, the contrary Is the case in 1933. That is a very characteristic phenomenon. It may. Indeed, be asked whether a decisive turn in the direction of an Increase has not been taken since spring, 1933. In view of the fact that gold prices have fallen relatively little since the summer of 1932 and that they have remained very stable since the beginning of 1933, the volume of world trade shows, since the month of August last year, particularly since the first quarter of 1933, a slight tendency to increase." The bulletin also contains a series of graphs showing to November the monthly wholesale price variations for 36 countries, taking the September 1931 level as 100. In the United States wholesale prices climbed from 85 in February to 100 in September, where they remain, while In the United Kingdom and Canada, where they reached 100 In July. they have gone down to 96. Most sterling-bloc countries in Europe show a rather stable line between 100 and 120 during 1932. Japan's level declined from 124 in January to 120. Six gold countries stay bunched together, through a year of slower deflation, with prices ranging from 87 for Switzerland to 82 for Poland and 85 for France. Among European nations allied to gold there was more disparity. Austria remaining at 100 and Hungary beginning to climb at 65. while Germany stands at 88 after a steady rise from 83 in March. Financial Chronicle 4422 Another table on touring shows Americans still in the lead in 1932. The United States net outlay, after $71,000,000 tourist income had been deducted, was $375,000,000. Canada gained most from tourists, its $136,000,000 net being mostly from the United States, with France second at $98,000,000 net and Italy third with $43,000,000. Former Premier Edouard Herriot of France has been named a member of the League's Committee for Intellectual Co-operation to succeed the late Paul Painleve. Valuation of Contracts Construction Awarded, as Compiled by F. W. Dodge Corp. The valuation of construction contracts awarded in the 37 States east of the Rocky Mountains in the month of November 1933 was $57,028,300 larger than in November 1932, the figure for November of this year being $162,330,600 against $105,302,300 in the same month of last year. For the first eleven months of the year there is a decline from 1932 of $221,450,500. CONSTRUCTION CONTRACTS AWARDED-37 STATES EAST OF THE ROCKY MOUNTAINS. New Floor No. of Projects. Space (Sq. Ft.) Month of November1933-Residential building Non-residential building Public works and utilities 2,500 2,072 1,660 6,433,000 5,053,100 276,200 Valuation. $23,615,700 27,635,300 111,079,600 6,232 11,762,300 162,330,600 1932-Residential building Non-residential building Public works and utilities 2,602 1,582 11,082 5,489,600 5,035,800 542,700 819,245,300 31,844,800 54,212,200 Total construction 5,266 12,068,100 8105,302,300 First 11 Months1933-Reatdential building Non-residential building Public works and utilities 38,759 26,354 12,427 66,892,900 65,203,200 3,506,300 8225,362,500 353,673,700 469,452,700 77,540 135,602,400 $1,048,488,900 36,154 21,260 14,510 70,170,100 75,890,500 2,566,100 $267,110,400 455,844,700 546,984,300 71.024 148.626.700 $i.269Aim _400 Total construction Total construction 1932-Residential building Non-residential building Public works and utilities Total construction NEW CONTEMPLATED WORK REPORTED-37 STATES EAST OF THE ROCKY MOUNTAINS. 1933. No. of Projects. Month of NovemberResidential building Non-residential building_ _ _ _ Public works and utilities Total construction First 11 MonthsResidential building Non-residential building_ _ _ Public works and utilities_Total construction Valuation. 1932. No. of Projects. Valuation. 3,110 3,745 2,786 $94,260,500 253,358,400 591,512,200 3,046 2,044 989 $23,411,600 45,235,800 45,701,000 9,641 $939,131,100 6,079 $114,349,000 44,914 36,523 21,014 $609,690,300 1,249,050,300 2.958,512,700 42,350 26,608 17,095 $389,781,900 497,915,100 806,401,200 102,451 84,817,253,300 86,053 $1,694,098,200 Industrial Workers Quitting Jobs at Greater RateDischarges Due to Growing Discontent During Quarter July to September Doubled Since First Dec. 23 1933 Seasonal Decline Reported in Ohio Employment During November by Ohio State University. The Bureau of Business Research of the Ohio State University reports that "the fractional decline in Ohio industrial employment during October was followed by a 1.6% decline in November, thus resulting in a total decline of 1.8% from the 1933 high in September. The net gain from the March low to the November level amounts to 36.5%. November employment was 27% above November 1932. As indicated by the experience over the past eight years, an October-November decline in employment is the usual occurrence." Under date of Dec. 15 the Bureau further said: Manufacturing employment in November declined 2.6% from October, while construction and non-manufacturing employment registered increases of 0.5% and 3.5%, respectively. In the 11 manufacturing groups of industry, only two groups-the machinery and the paper and printingreported increases. Seven of the 31 individual industries reported increases in November from October, the largest increases occurring in the special purpose machinery industry, and the paper, including stationery, industry. With but three exceptions, employment in all groups of manufacturing Industries and all individual manufacturing industries were above employment in November 1932. The November increases in non-manufacturing employment was due, primarily, to a 5.1% increase in employment in retail and wholesale trade and a 2.9% increase in transportation and public utilities. It is to be noted that employment in the service, and transportation and public utilities groups were below the November 1932,levels. Two of the eight major cities-Akron and Dayton-reported employment increases in November from October. Declines in the other six cities ranged from 0.6% in Cincinnati to 15.6% in Youngstown. In all the chief cities, employment was substantially above the March low and from 3.3% to 51.1% above the November, 1932, levels. These data do not take into account the employment increase directly brought about by the operation of the Civil Works Administration. Approximately 210,000 men have been placed in jobs in Ohio on CWA projects since Nov. 15. Gas Revenues Declined 6% In Ten Months. During the first 10 months of 1933 revenues of manufactured and natural gas utilities declined 6%, dropping from $597,790,3.00 in the first 10 months of 1932 to $560,302,500 in the corresponding period of 1933,it was announced on Dec. 21 by Paul Ryan, Chief Statistician of the American Gas Association. The announcement further stated: The manufactured gas companies reported revenues of $315,107.400 for the first 10 months, or 8.6%, less than for the same period of the preceding year, while revenues of the natural gas utilities aggregated $245,195,100, a decline of 3.2%. Sales of manufactured gas reported for the 10-month period totalled 291.860,200,000 cubic feet. a loss of 6%, while natural gas sales were 682,129.000,000 cubic feet. an increase of 2% over the corresponding period of the preceding year. This decline in sales and revenue appeared to characterize practically all sections of the country served with manufactured gas. In regions served with natural gas however, the decline in sales and revenues was relatively much less severe, owing to marked expansion in sales of gas for industrial uses. In New York State, sales of natural gas for industrial uses increased 50% during the first 10 months of 1933, while in the States of Pennsylvania and Ohio the gain in this class of business was 16% and 30% respectively. Some States in the mid-continent area also reported pronounced gains, industrial sales of natural gas in Oklahoma gaining 27% during the 10 month period. A significant feature of the data reported by the manufactured gas companies was an increase during the year of nearly 22% in the number of customers using gas for house heating purposes. of Year. Twice as many industrial workers in the United States voluntarily quit their jobs in July, August and September of this year as in the previous quarter, and almost three times more than in the first quarter of the year, reports the American Economic Institute, New York City, in a survey based upon the statistics of the U. S. Department of Labor and other sources. The Institute continues: The average annual voluntary labor turn-over rate in industries is now estimated at 176,000 per million workers, as compared with the average of 83,000 per million workers in 1932. During the first quarter of this year the annual labor quit rate was only 54,000 workers per million. In the second quarter of the year the number of voluntary quits increased to an annual turn-over rate of 89,200 workers per million. During the third quarter the turn-over rate doubled, reaching the annual rate of 176,000 workers per million. (The annual quit rate of the Institute is computed by taking the arithmetic mean for any quarter and multiplying by four, which gives the annual rate for that period.) Not only have "voluntary quits" of industrial workers under the National Recovery Administration soared, but discharges resulting from growing discontent have doubled since the first of the year, the Institute reports, adding: During the first quarter of this year the annual discharge rate in industry was 15,200 workers per million, as compared with 19,500 per million for the year 1932. During the second quarter the annual discharge rate jumped up to 20,800 workers per million, and in the third quarter the rate was 31.200 workers per mnon-double the rate for the first quarter of the year. Labor turn-over is one of the greatest problems of industry, the Institute points out, saying that the cost of training a new employee on a specialized operation may run as high as $100. According to the Institute, "the mounting rate of labor turn-over will add substantially to the manufacturing costs of many factories." Lumber Orders Near Lowest of the Year. Orders booked at the lumber mills during the week ended Dec. 14 1933 were the lowest of any week of the year with the exception of two holiday weeks in January and February; shipments were lower than any week since April except that of Thanksgiving and production, except for Thanksgiving week, was lowest since early September, according to telegraphic reports to the National Lumber Manufacturers Association from regional associations covering the operations of leading hardwood and softwood mills. The decline is partly the usual seasonal trend and partly a continuance of the reaction from the buying spurt of November. The reports were made by 1,240 American mills whose production was 171,411,000 feet; shipments, 145,944,000 feet; orders, 97,768,000 feet. Report of 22 British Columbia mills during the week ended Dec. 16 was production, 14,168,000 feet; shipments, 11,083,000 feet and orders, 6,688,000 feet. The Association's announcement adds: All regions but northern pine and northern hemlock, where production is seasonally down, reported orders less than output, total softwood orders being 41% below production, hardwood orders, 52% below. The Douglas fir was the only softwood region to report orders less than during the corresponding week of 1932 but this pulled down the softwood total to 27% below last year. Softwood mills reported production 56% above that of a year ago. The hardwood report was incomplete. Unfilled orders at softwood mills on Dec. 16 were the equivalent of 15 days' production of reporting mills, compared with 18 days' a month ago and 14 days' a year ago. Forest products carloadings during the week ended Dec. 9 of 20,352 cars were 400 cars less than for the preceding week, 4,998 cars above the same week of 1932 and 1,287 cars above similar week of 1931. Lumber orders reported for the week ended Dec. 16 1933, by 807 softwood mills totaled 81,995.000 feet, or 41% below the production of the 4423 Financial Chronicle Volume 137 same mills. Shipments as reported for the same week were 122,921,000 feet, or 11% below production. Production was 138,467.000 feet. Reports from 456 hardwood mills give new business as 15,773,000 feet. or 52% below production. Shipments as reported for the same week were 23,023,000 feet, or 30% below production. Production was 32,944,000 feet. Unfilled Orders and Stocks. Reports from 1,163 mills on Dec. 16 1933, give unfilled orders of 645, 918.000 feet and 1.147 mills report gross stocks of 4,051,898,000 feet. The 364 identical softwood mills report unfilled orders as 408,932.000 feet on Dec. 16 1933, or the equivalent of 15 days' average production, as compared with 381,276,000 feet, or the equivalent of 14 days' average production on similar date a year ago. Identical Mill Reports. Last week's production of 406 identical softwood mills was 122.964.000 feet, and a year ago it was 79,866,000 feet; shipments were respectively 110,420.000 feet and 75,301,000; and orders received 75,458,000 feet and 102,727,000 feet. (The identical hardwood mill report is incomplete). SOFTWOOD REPORTS. West Coast Movement. The West Coast Lumbermen's Association reported from Seattle that for 475 mills in Washington and Oregon and 22 in British Columbia reporting, shipments were 18% below production, and orders 54% below production and 43% below shipments. New business taken during the week amounted to 42,153,000 feet, (previous week 59,950,000 at 496 mills); shipments 74,594.000 feet, (previous week 73,549,000); and production 91,103.000 feet. (previous week 92,383.000). Orders on hand at the end of the week at 475 mills were 319,995,000 feet. The 172 identical mills reported an increase in production of 62%, and in new business a loss of 48%, as compared with the same week a year ago. Southern Pine. The Southern Pine Association reported from New Orleans that for 126 mills reporting, shipments were 23% below production, and orders 33% below production and 13% below shipments. New business taken during the week amounted to 17,624,000 feet, (previous week 19,377,000 at 125 mills); shipments 20,186,000 feet, (previous week 18,150.000); and production 26,167,000 feet, (previous week 26,129,000). Production was 43% and orders 29% of capacity, compared with 42% and 31% for the previous week. Orders on hand at the end of the week at 91 mills were 50,723.000 feet. The 91 identical mills reported an increase in production of 23%, and in new business an increase of 7% as compared with the same week a year ago. Western Pine. The Western Pine Association reported from Portland, Ore., that for 144 mills reporting, shipments were 10% above production, and orders 20% below production and 28% below shipments. New business taken during the week amounted to 23,217,000 feet, (previous week 20.310,000 at 156 mills); shipments 32,070.000 feet, (previous week 33,651,000); and production 29,084,000 feet, (previous week 34,732,000). Orders on hand at the end of the week at 114 mills were 85.659,000 feet. The 112 identical mills reported an increase in production of 70%, and in new business an increase of 4%, as compared with the same week a year ago. Northern Pine. The Northern Pine Manufacturers of Minneapolis. Minn., reported production from 18 American mills as 249,000 feet, shipments 1,597,000 feet and new business 1.365,000 feet. Seven identical mills reported new business 65% greater than for the same week last year. California Redwood. The California Redwood Association of San Francisco reported production from 21 mills as 5,434,000 feet, shipments 4,380,000 feet and new business 3,573,000 feet. Production of 19 mills was 45% of normal production. Eleven identical mills reported production 44% greater and new business 10% greater than for the same week last year. HARDWOOD REPORTS. The Hardwood Manufacturers Institute, of Memphis, Tenn.. reported production from 433 mills as 30.588.000 feet, shipments 22,059,000 and new business 15.054,000 feet. The Northern Hemlock and Hardwood Manufacturers Association, of Oshkosh, Wis., reported hardwood production from 23 mills as 2,356,000 feet, shipments 964,000 and orders 719,000 feet. Orders were 8% of capacity, compared with 11% the previous week. The 13 identical mills reported a gain of 60% in orders, compared with the same week last year. Lumber Industry Gains 30% Over 1932-Employment Almost Doubled from March to October. According to a statement released by Wilson Compton, General Manager of the National Lumber Manufacturers Association on Dec. 20, the year 1933 turned the corner for the lumber industry which had been steadily receding since the summer of 1929. The low point since 1869 was reached last March, when production sank to 22%, 1922-25 being taken as 100. The year 1932 saw production fall to 10 billion board feet as compared with 37 billion feet in 1926 and also in 1929. The shrinkage of employment was tragic, being at the lowest point in March only 29% of normal, and even this 29% was largely part time at reduced wage rates. Mr. Compton's announcement further adds: Due mainly to over-optimistic belief in early general business recovery, production, more than keeping step with the gratifying growth of orders, increased rapidly until July, when it was about on a par with June 1931. Since then there has been a recession of business on the whole, due to the passing of speculative buying and to the workings of the Lumber Code. which became effective in part in the latter part of August and wholly effective by the middle of November. The Code, of course, provides for orderly production. The year 1933 as a whole will record a total lumber Production of about 13 billion feet. being a gain of 30% over 1932. The Code has greatly pro- Automobile Production in November. November factory sales of automobiles manufactured in the United States (including foreign assemblies from parts made in the United States and reported as complete units or vehicles), based on data reported to the Bureau of the Census, consisted of 63,904 vehicles, of which 42,818 were passenger cars, 19,475 trucks, and 1,611 taxicabs, as compared with 138,485 vehicles in October, 59,557 vehicles in November 1932, and 68,867 vehicles in November 1931. The table below is based on figures received from 120 manufacturers in the United States, 33 making passenger cars and 87 making trucks (nine of the 33 passenger car manufacturers also making trucks). Figures for taxicabs include only those built specifically for that purpose; figures for trucks include ambulances, funeral cars, fire apparatus, street sweepers, and buses. Canadian figures are supplied by the Dominion Bureau of Statistics. NUMBER OF VEHICLES. Canada. United States. Year and Month Total. 1931January February March April May June July August September_ _ _ • October November 171,848 219,940 276,405 336,939 317,163 250,640 218,490 187,197 140,566 80,142 68,867 TaxiPassenoer Trucks. cabs.: Cars. PassesTotal. ger Cars. Trucks. 33,531 39.521 45,161 50,022 45,688 40,244 34,317 31,772 31,338 21,727 19,683 512 529 410 665 340 360 180 104 141 651 999 6,496 9,871 12,993 17,159 12,738 6,835 4,220 4,544 2,646 1,440 1.247 4,552 7,529 10,483 14,043 10,621 5,583 3,151 3,426 2,108 761 812 Tot.(11 mos.) 2,268,197 1,870,302 393,004 4,891 80,189 63,069 17,120 23,644 1,144 2,432 Total (year). 2,389,738 1,967,055 416,648 6,035 82.621 December 1932January February March April May June July August September October November 121,541 137,805 179,890 230,834 286,252 271,135 210,036 183,993 155,321 109,087 57,764 48,185 96,753 2,024 1,944 2,342 2,510 3,116 2,117 1,252 1,069 1,118 538 679 435 408 65,093 17,528 A0V.MMt..0M , 00 ONt...Mr.-MN . CO N CO Northern Hemlock. The Northern Hemlock and Hardwood Manufacturers Association, of Oshkosh, Wis., reported softwood production from 23 mills as 597.000 feet, shipments 1.177,000 and orders 751,000 feet. Orders were 6% of capacity compared with 5% the previous week. The 13 identical mills reported a gain of 23% in production and a gain of 229% in new business, compared with the same week a year ago. moted employment, which even in the relatively active month of June was still only 36.9% of that of 1926 and attained to 49% in October, with not only larger payrolls but with larger rates of individual pay. There was another spurt of abnormal buying in the first half of November, owing to anticipation of the minimum prices imposed by the Code. The gains scored by the industry during 1933 have been without the aid of the hoped for recovery in private building and construction. The choice of lumber for the permanent barracks of the Civilian Conservation Corps gave a welcome volume of business amounting to about 300 million feet and the Public Works program has been of some slight assistance. Public expenditures will be notably effective in 1934: and a degree of recovery in private business is certain. The Lumber Code Authority expects a considerable accretion of business in the spring and production quotas have been adjusted accordingly. The National Industrial Recovery Act has noticeably restored the morale of the industry, which sees in it the statutory embodiment of reforms which it had long desired but was powerless to achieve without the aid of public authority, including not only rational economic control but also the beginning of systematic conservation of commercial forests according to a plan of sustained yield as contrasted with the general full cutting of the past. The industry enters 1934 in a hopeful mood and looks forward to solid, if perhaps moderate, advance during 1934. As this industry-normally employing, with its affiliates, about a million persons-is the Principal one in several States and an important one in 30 States, the improvement of its position will contribute to, as well as reflect, the general business recovery which we now believe is In process. 3,731 5.477 8,318 6,810 8,221 7.112 7,472 4,067 2,342 2,923 2,204 828 58,677 49,167 9,520 21,204 291 2.139 1,561 578 Total (year). 1,370.678 1,134,372 235,187 1,119 60,816 5 152 660 411 54 35 4 68 9 63 1,611 3,358 3,298 6,632 8,255 9,396 7,323 6,540 6,079 5,808 3,682 2,291 20,541 23.308 19,560 27.389 26,539 22,768 14,438 14,418 19,402 13,595 12,025 Tot.(11 mos) 1,263,325 1,048,514 213,983 December 1933January February March April May June July August September October November 119,349 117,418 118,959 148,326 184,295 183,106 109,143 90,325 84,150 48,702 59,557 107,353 130,044 106,825 117,949 180.667 218,303 253,322 233,088 236.487 196,082 *138,4 5 63,904 98,706 94,085 99,325 120,906 157,683 160,103 94,678 75,898 64,735 35,102 47,293 85,858 108,321 21,718 91,340 15,333 99,225 18,064 152,939 27,317 184,644 33,605 211,44: ' 0 41,839 195,019 38,065 195,076 41.343 160,891 35.182 108,010 *30,412 42,818 19,475 3,112 4,494 6.604 5,660 7,269 6,308 6.773 3,166 1,741 2.361 1,669 619 983 1,714 1.150 952 804 699 901 601 562 535 50,718 10,098 2,921 3,02.5 5.927 6,957 8,024 6,005 5,322 4,919 4,358 2,723 1,503 437 273 705 1,298 1,372 1,318 1,218 1.160 1.450 959 788 Tot.(11 mos.) 1,875,156 1,549,731 322,353 3,072 62,662 51,684 10,978 a Includes only factory-built taxicabs, and not private passenger ears converted nto vehicles for hire. • Revised. Gain of 42% in Output of Motor Vehicles During 1933 Over 1932 Predicted by National Automobile Chamber of Commerce-Forecasts Production at 2,040,000 Units. Preliminary reports received at a meeting of the directors of the National Automobile Chamber of Commerce,Dec. 12 indicated that the output of American manufacturers this year would approximate 2,040,000 cars and trucks-a gain of 42% over 1932, according to an announcement by Alfred 4424 Financial Chronicle Reeves, Chamber Vice-President. A statement issued on Dec. 13 by the Chamber further said: Passenger car production for this year will be approximately 1,680.000 units-an increase of 41%% over last year. Likewise, a substantial improvement in the truck industry is reflected by an estimate placing this year's commercial vehicle output at 360,000 units-an increase of 47% over last year. Mr. Reeves related that motor leaders were deriving additional encouragement from the increased volume of business which they are receiving from foreign countries. For the fourth successive month, according to the latest report from the automotive division of the United States Department of Commerce, exports of automotive products continued to rise. Foreign shipments have been a factor in offsetting the seasonal trends in domestic buying. "The benefits of this Improvement in the motor market have not been confined to the automobile industry," Mr. Reeves declared. "Companies engaged in the production of raw materials and the processing of automotive parts and accessories have shared proportionately. "Likewise, car buyers have benefited because the increased volume of automotive sales has enabled manufacturers to resist the pressure for raising their prices as raw material prices and labor costs advanced." In Mr. Reeves's opinion, leaders of the industry are depending largely upon the many startling improvements and innovations scheduled for introductiod on their new models to increase the momentum of their operations during 1934. Compliance with the 24 codes covering industries and trades directly concerned with the automobile business has raised the price of materials and parts to such an extent that moderate advances in automobile prices now appear inevitable. However. Mr. Reeves reports the manufacturers as being confident that any resistance to higher prices by the public will be more than offset by the technical improvements to be found on next year's cars. The inventories of automobile dealers throughout the United States are in a very wholesome condition, he declared. Because of this situation, the purchase of new model cars by the public will produce almost immediate results on factory employment schedules. Agricultural Department's Report on the 1933 Production of Grain and Other Crops. The Crop Reporting Board of the United States Department of Agriculture made public on Dec. 19 its report of crop acreage, production and farm value of crops as of Dec. 1. This report makes the farm value of all crops for 1933 $4,076,537,000, as compared with $2,879,517,000, the farm value of the crops in 1932 and with $4,102,354,000, the farm value of all crops in 1931. The production of wheat (spring and winter combined) is now placed at 527,413,000 bushels, or the smallest wheat crop since 1894, and about 70,000,000 bushels below the quantity required in recent years for domestic consumption as flour and for seeding. The 1933 wheat crop is 29% less than the 1932 crop of 744,076,000 bushels and 43% less than the 1931 crop of 932,221,000 bushels. Corn production is placed at 2,330,237,000 bushels, or 19.8% smaller than last year's crop of 2,507,303,000 bushels; 10.0% smaller than the crop of 2,229,088,000 bushels in 1931, and is the lowest on record since 1901 with the exception of the 1930 crop. Most crops, because of reduced acreage harvested and the low yields per acre, show a production below that of the last two years and in many cases the lowest recorded in 35 or 40 years. The report in full follows: GENERAL CROP REVIEW FOR 1933. A 42% increase over last year In the total value of crops produced Is shown by the check-up of the crops of the United States that has just been completed by the United States Department of Agriculture. The increase in value was due to the higher prices which farmers have been receiving. The production of 10 of the principal crops which cover about 90% of the acreage of all field and truck crops was nearly 18% lower in 1933 than it was in 1932 and also lower than in any of the last 30 Years. Valuing late crops at the prices being received by farmers on Dec. 1 of each year and adding the value of early fruits and vegetables already marketed, the estimates show total crop values of $4.0;6.537.000 this season, compared with $2.879.517.000 last year, $4.102,354,000 In 1931 and the $8.088.494.000 estimate for 1929. These values should not be confused with estimates of farm income, for they include the values of crops grown for feeding on the farms where produced, and exclude important commodities such as the value of livestock and livestock products, from which more than half of the total income of farmers is usually derived, some minor commodities, such as forest. greenhouse, and garden products not separately estimated. The benefit Payments received this year under the production control programs are likewise excluded. As the prices of most kinds of livestock and livestock products are still low, the increase In farm income has not been proportional to the increase in crop values but the higher valuation of the feed grains and hay produced shows that farmers expect a substantial Improvement in return from these products when they are finally fed or sold. The increases in value in comparison with the very low values shown last year are particularly marked In corn, cotton, wheat, and tobacco. These crops are valued this year at $2,153,025.000 compared with $1,330.052,000 last year. an Increase of $822,973,000 or 62%. The acreage of field crops and truck crops actually harvested in 1933 is now estimated at 327.324.230 acres. This is a decrease of more than 32.000,000 acres or nearly 9% compared with the 359.482.900 acres harvested in 1932 and nearly 8% below the acreage harvested in 1931. The decrease In acreage, as compared with last year, was due to various causes, including the failure of some 14.000.000 acres of winter wheat seeded In the fall of 1932. only part of which could be reseeded to spring crops, very unfavorable weather at planting time in many parts of the country, and very heavy loss of spring grains, chiefly as a result of drought, and the plowing under of 10.384.000 acres of cotton. The loss of spring grains was particularly heavy in the Dakotas, Colorado, Wyoming, and Montana, where more than 8.000.000 acres of spring wheat, oats, barley and flax were a complete failure and could not even be salvaged as hay. Dec. 23 1933 Combining all crops, yields per acre on the acreage actually harvested averaged 5.5% below crop yields in 1932. 8.9% below crop yields in 1931 and 5.0% below the average of crop yields during the previous 10 years. Yields were, however. 2.9% above those secured in the drought year, 1930. Crop yields were particularly low in an area extending from northern Texas to central Montana and from there eastward into western Minnesota. As a result of the reduced acreage harvested and the very low yields secured per acre, the total volume of crops produced was unusually low. The composite production of 10 of the principal field crops was 17.7% below production in 1932, and 20.4% below 1931. and below production In any other season since 1903. In proportion to population, the production of these principal crops was markedly lower than in any season for at least 40 years. The crops of wheat, oats and rye were each the smallest recorded in 35 years and corn, flax, buckwheat, and hay were all unusually short crops. Wheat. The production of all wheat in 1933 of 527,413,000 bushels is the smallest wheat crop produced In this country since 1894, and about 70.000,000 bushels below the amount required in recent years for domestic consumption as flour and for seeding the new crop. The production in 1933 was 29% less than the 1932 crop of 744.076.000 bushels and 43% less than the large crop of 932.221.000 bushels produced in 1931. The estimates of production for the period 1928 to 1932 have been revised in line with data on shipments and other utilization of wheat collected by the Department in connection with check-up of farmers' applications for benefits in connection with the wheat reduction campaign. As a result of this check-up the Department has reduced slightly its estimate for 1928 and increased slightly its estimate for each of the other four years. The present estimate of 527,413.000 bushels Is 12,600,000 bushels greater than the preliminary estimate made In October. The total acreage of wheat harvested in 1933 was 47.493,000 acres. about 10.000,000 acres less than the acreage in each of the two preceding years. The very low acreage and production In 1932 results from a combination of unfavorable weather and heavy abandonment in both winter wheat and spring wheat sections. Frequently an average or better winter wheat crop occurs in a year when the spring wheat crop Is short. Even in 1931 a very large crop of winter wheat was produced when the spring wheat clop was very short. This year both crops were short. The production of winter wheat in 1933 is placed at 351,030.000 bushels compared with the 1932 crop of 475,709.000 bushels and the record winter wheat crop of 817.962.000 bushels in 1931. The acreage of winter wheat harvested is estimated at 28.420.000 acres, compared with 35.276.000 acres in 1932 and 43.080.000 acres in 1931. This crop was seeded under very dry conditions and severe abandonment occurred during the late fall and winter as a result of continued drought and high winds. The drought continued during the early spring and yields per acre were sharply reduced on the acreage remaining for harvest. The estimated yield per acre in 1933 was 12.4 bushels compared with 13.5 bushels in 1932 and 19.0 bushels in 1931. The prOduction of durum wheat in 1933 was 16.109.000 bushels compared with 40.600,000 bushels in 1932 and 20.712.000 bushels in 1931. Acreage harvested was 2.310.000 acres in 1933, 3,946.000 acres in 1932 and 2,960.000 acres in 1931. The yield per acre of 7.0 bushels In 1933 is the same as the low yield of 7.0 bushels In 1931 and about one-third less than the 1932 yield of 10.3 bushels. Abandonment of acreage in 1933 resulted from extreme drought and high temperatures during June and July, particularly in the Dakotas and Montana. The production of spring wheat other than durum is estimated at 160,274,000 bushels in 1933 compared with 227.767.000 in 1932 and 93.547.000 bushels In 1931. While the crop was extremely short again In the Dakotas and Montana. It was not as short as in 1931. Moreover, the production in the Pacific Northwest States was greatly increased because of good yields upon a greatly increased acreage seeded upon abandoned winter wheat land. Acreage of other spring wheat Is 16.763.000 acres In 1933 compared with 17.982.000 acres in 1932 and 11,063,000 acres in 1931. while the yields for the same years were respectively 9.6. 12.7 and 8.5 bushels per acre. In the Dakotas and Montana the crop of other spring wheat was cut sharply by abandonment and low yields resulting from the drought and hot weather in June and July. Corn. The 1933 corn crop of 2.330.237,000 bushels is 19.8% smaller than that of 1932 and 10.0% smaller than that of 1931. but 13.2% larger than the small crop of 1930. Except for 1930. production this year is the lowest on record since 1901. These figures include corn hogged off and cut for silage as well as that harvested for grain. The acreage of corn harvested for all purposes In 1933 is 102.239.000 acres, which Is 5.9% less than In 1932 and 3.5% less than in 1931. but 1.5% larger than in 1930. Compared with 1932. the North Central States this year decreased their acreage 7.3%. the South Central States decreased almost 6%. the South Atlantic States decreased 0.4% while the North Atlantic and the Western States increased respectively 0.5 and 1.2%• It is estimated that 86.8% of the total corn acreage, or 88.767,000 acres, was harvested for grain with a grain production of 2,025,015,000 bushels. In the Corn Belt unfavorable weather conditions at planting time, early summer drought, and rather extensive damage from chinch bugs In some areas contributed to a reduction in acreage harvested this year. Each of the Corn Belt States showed a smaller acreage than was harvested In 1932. but the most pronounced changes occurred In Illinois. where the decrease was 11%. and In South Dakota*, where it amounted to 33%. Outside of the Corn Belt. the most marked change in Important corn producing States was In Oklahoma where, largely due to a shift from corn to cotton, a decrease of 21% in the acreage took place. The yield of corn was 22.8 bushels per acre In 1933 compared with 28.8 bushels in 1932 and 26.1 bushels. the 10-year average, 1921-1930 although yields were considerably below average, corn matured well as a result of the unusually favorable autumn and this crop was somewhat better than had been anticipated earlier In the season. The North Central States, in 1933, produced over 72% of the total corn crop compared with over 76% In 1932 and less than 70% in 1031. Buckwheat, The 1933 production of buckwheat is estimated at 7.844,000 bushels compared with 6.727.000 bushels In 1932 and 8,890.000 bushels in 1931. The acreage harvested this year amounted to 462.000 acres which is 2% more than In 1932 but about 8.5% less than In 1931. Conditions were quite satisfactory for the development of the buckwheat crop this year. Yields averaged 17.0 bushels per acre in 1933 compared with 14.8 bushels In 1932 and 15.9 bushels. the 10-year average yield, 1921-1930. New York showed a small decrease in acreage this year; but Pennsylvania, the other leading buckwheat State. registered a slight increase. In both of these States, however, an appreciable increase in yield per acre over 1932 resulted in a larger production for 1933 than was shown in the previous year. Most of the minor buckwheat States in 1933 also showed increases in production over 1932. Volume 137 Financial Chronicle Oats. The production of oats in 1933 is now estimated at 722,485,000 bushels, Which is 42% less than in 1932 and about 36% less than in 1931. The 1933 crop has been the smallest since 1897. Until the current year, oats production had exceeded 1 billion bushels each year since 1911. In the East North Central States, production in 1933 is 44% less than last year; West North Central States, 47% less; in the North Atlantic States, 23% less; in the South Atlantic States, 14% less; in the South Central States, of 1%• 34% less; while in the Western States the decrease is about Due to unfavorable weather conditions, the seeding of oats was later the Central in delayed seriously was and States important the in usual than and Eastern Corn Belt area. Considerable acreage of oats drowned out in low places in the Eastern part of the Corn Belt. In the Plain States, there was an appreciable loss of acreage from drought early in the season. Some of the oats, originally intended for grain, were so poor that they could be utilized only for hay. The acreage of oats harvested in 1933 was 36,541,000 acres which was 11.8% leas than in 1932, 8.8% less than in 1931 and the smallest acreage since 1910. In the Corn Belt. which, usually has about 80% of the total oats acreage of the country, there was a decrease of almost 12% in the acreage harvested as compared with 1932. The yield of oats in 1933 is estimated to be 19.8 bushels per acre compared with 30.1 bushels in 1932 and 28.1 bushels in 1931. Except for the yield in 1890, when it averaged the same as for the present year, the 1933 yield is the smallest on record. Barley. Barley production estimated at 156,104,000 bushels is 48% less than the 1932 crop of 302,042,000 bushels and is the smallest crop harvested since 1922. Heavy abandonment of acreage in the Dakotas and poor yields in the large producing States of Minnesota, Iowa, North and South Dakota, Nebraska and Kansas are the reasons for the short crop. The acreage harvested is 10.052,000 acres compared with 13,346,000 acres in 1932 and 11.424,000 acres in 1931. Thin stands, short straw, and small heads caused by drought and extreme heat during the blooming and filling stages resulted in the smallest yield per acre on record. The average yield is estimated to be 15.5 bushels per acre compared with 22.6 bushels in 1932, 17.4 bushels in 1931 and 22.8 bushels, the 10-year average. 1921-1930. Rice. The 769,000 acres of rice harvested in the United States in 1933 is the comparable data are available. This which for years smallest in the 15 year's harvested acreage (663.000 acres) in the three Southern rice States is likewise the smallest in the same period. Production, however. both in the South and in the whole country, exceeds that of three other years since 1918, being estimated at 35.619.000 bushels (of 45 pounds rough) for the United States and 29,577,000 bushels in the South. Revised figures for the United States for 1932 are 40,408,000 bushels harvested from 868,000 acres and for 1931 are 44.873.000 bushels harvested from 964,000 acres. Corresponding figures for the Southern rice States (Arkansas, Louisiana and Texas) are 33.368.000 bushels from 758,000 acres in 1932 and 36,373.000 bushels from 839,000 acres in 1931. Rye. The 1933 production of rye is estimated at 21.184.000 bushels compared with 40.639,000 bushels in 1932 and 32,290,000 bushels in 1931. this year's small crop being due largely to drought in the Dakotas. The acreage harvested in 1933 amounted to only 2.352,000 acres while in 1932 it was 3,344.000 acres and in 1931 it was 3,104,000 acres. In the North Central group of States, where the bulk of the rye is produced, the total acreage sown in the fall of 1932 in Minnesota, the Dakotas and Nebraska was smaller than for several years and the winter abandonment of seeded acreage was large. The yield of rye in 1933 averaged 9.0 bushels per acre compared with 12.2 bushels in 1932 and 10.4 bushels in 1931. Hay, The fourth successive short crop of hay was harvested in 1933. The production of 65,852,000 tons of tame hay and 8,633,000 tons of wild hay, a total of 74.485,000 tons. is 9.6% below the 82,405.000 tons harvested in 1932. 1.1% above the 73.708.000 tons harvested in 1931 and 11.5% below the 5-year (1926-1930) average of 84,166,000 tons. The small crops in recent years were caused largely by low production of clover and timothy, and drought has also reduced the hay crops in the market hay areas in the Great Plains. The production of important kinds of hay in 1932 and 1933 were respectively: clover and timothy, 26,235,000 tons and 25,159.000 tons; alfalfa, 26,207,000 tons and 24.899,000 tons; annual legume hays, 4,874.000 tons and 3.974.000 tons; grain hays, 5,204.000 tons and 4,531.000 tons, and wild hay, 12.137,000 tons and 8.633,000 tons. The total acreage harvested for hay was 66,144,000 acres in 1933; 67,617,000 acres in 1932; 66,389,000 acres in 1931, and a 5-year (1926-1930 average) of 68,198,000 acres. Larger acreages of clover and timothy, alfalfa, and grain hays were harvested in 1933 than in 1932, but lower yields prevented increases in production. The acreage of wild hay harvested In 1933 was only 86% of that harvested in 1932 and very low yields reduced production to only 71% of the 1932 wild hay crop. Seeds. Alfalfa seed production in 1933 is estimated to be 922,900 bushels which is 72% above the small 1932 crop of 535,800 bushels. and 10% above the 1931 crop of 838,900 bushels. The acreage harvested was 382,300 acres compared with 274,400 acres in 1932 and 361.100 acres in 1931. The season was generally favorable for the production ofseed, especially in the Western States, and the average yield per acre of 2.41 bushels is the largest during the past three years. The production of red and elflike clover seed of 1,399.600 bushels is 17% less than the large 1932 crop of 1,686,400 bushels but is 25% above the 1931 crop of 1,118,000 bushels. The season was fairly favorable and yields were slightly below average throughout the country. The acreage harvested was reduced about 9% to 1.006,000 acres. Sweet clover seed production is estimated to be 689,800 bushels which is 1% less than the 1932 crop of 692,600 bushels and 18% below the 1931 crop of 837,700 bushels. The acreage harvested is the same as in 1932. as the 22% reduction in North Dakota is balanced by increases in other States. Yields were generally slightly smaller than last year. Production of 907.800 bushels of timothy seed in 1933 is the smallest since 1924, when estimates were first made for this crop, and is 35% less than the 1932 crop of 1.406,400 bushels and 56% below the 1931 crop of 2,045.900 bushels. The acreage in 1933 was reduced 21% and yields were generally below average. Beans. A crop of 12,280.000 bags of dry edible beans is estimated for 1933. compared with 10,440,000 bags in 1932 and an average crop ofabout 13.000,000 bags for the previous three years. The crop turned out to be much larger than estimated earlier in the season, the late growing and harvesting season having been unusually favorable. The production of the small white or Pea bean, the familiar "army bean" of the Northern States, is estimated to be about a million bags less than the rather large crop of 1932. but the crop of competing Great Northern beans of the Northern Rocky Mountain 4425 State is about 650.000 bags greater and the California small white "Navy bean" crop is about 190,000 bags greater than last year. The production of pinto, blackeye, cranberry and baby lima beans is in each case about double that of last year. The standard lima bean crop is about average. The red kidney bean production is about a third greater than last year and a third less than in 1931. Small reds and pinks are moderately increased. Soybeans. Soybean production (for beans) this year is estimated at 11.177,000 bushels, the crop having been sharply reduced by drought conditions in Illinois and Indiana. The 1932 crop was estimated at 13,121,000 bushels which was in turn much less than the crop of 15,463,000 bushels harvested in 1931 which was the year of maximum soybean production. While the crop decreased heavily this year in the commercial producing States of Illinois, Indiana and North Carolina, pronounced increases occurred in Missouri and Iowa. Losses in acreage in the main commercial area were almost balanced by gains elsewhere, the total of 817,000 acres harvested for the beans this year being only about 1% less than in 1932. Yields averaged only 13.7 bushels per acre compared with 15.8 bushels last year. The total acreage of soybeans planted alone was 2.705,000 acres, compared with 2.965,000 in 1932 while the plantings in the corn fields of the Southern States were 628,000 acres this year compared with 687.000 acres last year. The acres of soybeans cut for hay fell from 2,160,000 acres in 1932 to 1,908,000 acres in 1933. Co:epees. A production of 5,846,000 bushels of cowpeas for peas is estimated for 1933, or about 5% less than in 1932 and 16% less than the large crop of 1931. The smaller crop results from rather general reduction of acreage. the 644,000 acres harvested for the peas in 1933 being 7% less than in 1932, with yields this year slightly better. The 1.729,000 acres of cowpeas planted alone this year was 16% smaller than last year. The 1,236.000 acres interplanted with corn in the Southern States was 15% smaller and the 1,286,000 acres harvested for hay was 18% smaller. Peanuts. The peanut production (for nuts) of 920,505,000 pounds this year is a decrease of about 11% below that of 1932 and 16% below that of 1931. The entire reduction from last year is accounted for in the territory producing the large podded Virginia types of nuts, which show a decrease from 441.000,000 pounds in 1932 to 317,000,000 pounds in 1933. Receipts by cleaners and shellers required an increase of about 10% in the estimate for the 1932 crop in this area. The production in the Southeast, made up mainly of ordinary runners and Spanish types, is about the same as last year and there is a small increase in the Southwestern crop of Spanish type peanuts. A reduction of 14% in acreage in the Southeastern States and of 8% in the Southwest was offset by increases in yield. Velvet Beans. The velvet bean crop this year is estimated at 609,000 tons of beans in the pod, compared with 586,000 tons in 1932 and 375,000 tons in 1931. The total plantings of 1,442,000 acres are about 3% greater than last year and almost 40% greater than in 1931. Velvet beans are a valuable supplementary feed crop in the Southeastern Coastal Plains area. The greater part of the velvet bean crop is grown in the corn fields of Georgia, Alabama and adjoining States where it is utilized mainly as a winter grazing crop for livestock. Considerable quantities of the pods are gathered and ground. Pods and seed together for seed. Ordinarily, only enough of the velvet beans are shelled out to provide feed for the next year's plantings. Broomcorn. The 296,000 acres of broomcorn finally harvested in 1933 was larger than anticipated. In Illinois some late broomcorn was planted where planting of ordinary field corn was delayed and in some of the western broomcorn areas the unusually warm fall permitted late fields to make salable brush. Yields per acre were the lowest on record so that the 1933 crop is only 32,900 tons, which is the smallest since 1925, when only 31,200 tons were harvested from 226,000 acres. The 1933 production is the second smallest in the 19 years for which comparable data are available although several smaller acreages have been harvested in that time. In 1932 the production was 36,900 tons from 304,000 acres and in 1931 was 45,200 tons from 298,000 acres. Fruit. The combined production of the 10 more important fruit crops in the United States during the year 1933 is about 5% less than the production in 1932, 18% less than produced in 1931, and 12% less than the average Production during the preceding five years. With the exception of the citrus crop, most of the 1933fruit crops have been harvested. For citrus, however. the figure for the 1933 production included in the present report is a forecast based upon the condition reported as of Dec. 1. Apples. The total production of apples for the 1933 season Is placed at 143,827,000 bushels, which is about 2% larger than the crop of 1932 but 15% smaller than the average crop produced during the 5 years 1926 to 1930. The Dec. 1 estimate of the commercial crop, however, has been lowered about 2% from the preliminary estimate of Nov. 1,and is now placed at 77,217,000 bushels which is about 10% less than the commercial crop of 1932 and about 21% less than the 1926 to 1930 average. The commercial crop this year is about 54% of the total production. In 1932 about 61% of the total crop was estimated as commercial and in 1931 about 51%. The apple crop this year Is quite generally reported to be of low quality due to unusual disease and insect injury, with the result that the per cent of culls ran unusually high and the amount offruit packed into commercial grades correspondingly low. In addition, bi-product plants have paid higher prices than last year which attracted more fruit into this channel. The forecast of car-lot shipments of apples for the 1933-1934 season is placed at 62.139 cars, of which it is estimated 35,540 had moved to Dec. 1, leaving about 26.599 cars yet to move from the 1933 crop. Those shipments should not be interpreted as a forecast of total supplies of apples that will be available for fresh consumption. Shipment of apples by truck has been on the increase during recent years, which has affected appreciably the use of rail shipment records as a check on the commercial production. This is particularly true in most of the eastern producing sections where large consuming centers are within easy trucking distance of the commercial orchards. Peaches. Peach production in 1933 is estimated at 45.326,000 bushels, compared with 42,443,000 bushels produced in 1932 and 76,586,000 bushels in 1931. The peach crop was cut severely by a late freeze following a period of warm weather that had advanced the trees in many important sections. Cranberries. The 1933 cranberry crop is estimated at 667,700 barrels, compared with the revised 1932 estimate of 564,836 barrels and 666,000 barrels produced in 1931. Citrus. The combined production of oranges and grapefruit for the 103-1934 season is forecast on Dec. 1 at 60,905,000 boxes as compared with 66,256,000 boxes produced trom the bloom of 1932 and 65,535,000 boxes in 1931. The orange crop is forecast at 48,216,000 boxes for the 1933-1934 season, which Is 5% less than the crop last year. The production was reduced somewhat In Florida and Texas as a result of the tropical storm in September. The effect on the orange crop was much less severe than on grapefruit. The grapefruit crop Is forecast on Dec. 1 at 12,689,000 boxes for the 1933-1934 season, which is about 17% less than the crop produced for the 1932-1933 season. Grapefruit was severely damaged by the hurricanes of September. Pears. from The estimate of the production of pears in 1933 remains unchanged the preliminary estimate made on Nov. 1. The crop is now placed at 8% production, 1932 the 21.192.000 bushels, which is about 4% short of less than the production in 1931, and 17% less than the crop of 1930. Unfavorable weather during the early season, together with subsequent below damage from disease and drought,served to reduce the 1933 pear crop the production of recent years. Grapes. same Grape production in 1933 is placed at 1,809,000 tons, which is the is about as the preliminary estimate of Nov. 1. The production this year crop average the than 18% less than the production in 1932, and 26% less for the five years 1926 to 1930. Tobacco. be 1,396,174,The total production of all types of tobacco is estimated to pounds 000 pounds which is 37% larger than the 1932 crop of 1,022,558.000 The acreage but 13% less than the 1931 crop of 1,607.484,000 pounds. but acreage, 1932 of all types other than cigar was increased 31% over the the acreage of cigar types was reduced about 46%. An increase of 47% resulted in the acreage of flue-cured tobacco over 1932 and heavier yields pounds in a production of 708,488,000 pounds compared with 376.157,000 and acreage The produced in 1932 and 669,154,000 pounds in 1931. pounds 138.455,000 and acres Production of the fire-cured types is 174.000 235,000 compared with 159,700 acres and 126,422.000 pounds in 1932, and airacres and 190.830,000 pounds in 1931. The production of the light Maryland. cured types is greater than last year for Burley but much less for as be to estimated is The acreage and production of these types in 1933 with follows: Burley, 515,400 acres and 416,252,000 pounds compared acres and 425.100 acres and 313,604.000 pounds in 1932 and 518,700 17,710.455,039,000 pounds in 1931; Southern Maryland, 32,200 acres and 1932 and in pounds 000 pounds this year. 33.900 acres and 26,272,000 types air-cured dark The 38,200 acres and 28,077.000 pounds in 1931. acreage consisting of One-Sucker and Virginia sun-cured show an increase in and production, but Green River shows a decrease. The total acreage and acres and Production of all of these types In 1933 is estimated to be 53,100 pounds in 41.801,000 pounds compared with 50.800 acres and 40,405,000 estimated 1932, and 88,400 acres and 75,992,000 pounds in 1931. The acreage and production of the cigar types in 1933 Is as follows: cigar filler. 67,37.100 acres and 35.010,000 pounds compared with 71,700 acres and 789,000 pounds in 1932 and 74,900 acres and 91,694,000 pounds in 1931; cigar binder, 24.300 acres and 31.987,000 pounds compared with 46,900 acres and 64,476,000 pounds in 1932 and 67.800 acres and 87,117,000 pounds in 1931; cigar wrapper, 6,000 acres and 6,153,000 pounds compared with 6.900 acres and 6,911.000 pounds in 1932 and 8,700 acres and 8,396,000 pounds in 1931. The estimates for the cigar types make allowance for the acreage and production removed under contract with the Agricultural Adjustment Administration. Potatoes. Production of potatoes in the 30 late potato States is estimated to have been 258,491,000 bushels this year or about )4% less than was reported on Nov. 1. The estimated production in 1932 was 292,681.000 bushels and the 1926-1930 average crop, 284.634,000 bushels. The crop in the the November 18 surplus or principal late shipping States varies little from for a report, with advances in the eastern and western States making up Production in the million bushel reduction in the central surplus States. bushels, or 8.5% less than the 18 surplus States is estimated at 229,175,000 average annual production of 1932 crop which was a little larger than the bushels, or 4%, from the the 1926-1930 period. A decrease of 1,250,000 where production November estimate, is noted in the 12 other late States estimated Is now estimated at 29,316.000 bushels compared with 42,228,000 average. The decrease produced in 1932 and 36,764,000. the 1926-1930 the where States central the In these other late States occurred chiefly in practically the entire season. Potato crop has met with reverses throughout resulted in some reducThe final harvest reports for the 1933 season have indicating about 2% tions in estimated acreages for the various States, July. The acreage less acreage in the 30 late States than was reported in than the 2,636,000 less 7% or acres, In the 30 States is estimated at 2,449,000 acres estimated to have been harvested in 1932. Vegetables for Manufacture. for commercial canning The total harvested acreage of 11 vegetables harvested acreage in 1932. or processing was 10.8% larger in 1933 than the preceding 1932. Harbut was 21.7% less than the average for the 5 years with 787,200 acres vested acreage in 1933 totaled 872.100 acres compared for the period in 1932, and with a five-year average of 1,114.300 acres corn,spinach, sweet 1927-1931. Substantially larger acreages of asparagus, moderate increases and cucumbers for pickles were harvested in 1933; tomatoes, occurred in snap beans, green peas and beets; smaller acreages of of cabbage green lima beans and pimlentos were harvested; the acreage for kraut was about the same as in 1932. Pecans. being harvested A moderately large pecan crop of 61.210,000 pounds is pounds this year, compared with 53,560,000 pounds in 1932 and 77,800,000 is a little over trees, improved In 1931. The production of nuts from 15,000,000 pounds compared with about 7.460,000 in 1932 and 21.000,000 In 1931. The crop of seedling and wild nuts is a little under 46,000.000 Pounds. being slightly greater than last year and about 10,000,000 pounds less than in 1931. Sugar Beets. next The sugar beet crop of 1933 is more than one-fifth larger than the record, the crop largest crop in the 23 years covered by the Department'sof acres. 984,000 acreage record a from produced of 11,085.000 tons being several times. The yield per acre (11.3 tons), however, has been exceeded but only 7,903,000 In 1932, 9,070,000 tons of sugar beets were harvested, beet crop was tons were harvested in 1931. The sugar content of the 1933 forecast at 1,629,000 above average and the production of beet sugar is previous record of 1,357,000 tons (of 2,000 pounds each) compared with the tons made from the 1932 beet crop. Dec. 23 1933 Financial Chronicle 4426 Louisiana Sugar Cane. The sugar cane crop in Louisiana was handicapped by rather poor stands and adverse weather during much of the season. Cane grown for sugar is yielding about 15 tons per acre. About 213,000 acres are being harvested for all purposes (sugar, sirup and seed) in the entire State and the total production is estimated at 3,125,000 tons, which is 234,000 tons less than the 1932 crop but larger than the crops of 1931 and 1930. Production of sugar from the 1933 Louisiana sugar cane crop is expected to be about 202,000 tons (of 2,000 pounds each) which is 21,000 tons less than the production in 1932 but is also the second largest production since 1922. Cane Sirups. The 1933 production of sirup from sorgo and sugar cane is estimated at 34,067,000 gallons or nearly 1,900,000 gallons more than in 1932 or 1931. During the last three years there has been a shift in the South Central States' from serge to sugar cane which produces more sirup per acre. Sweet Potatoes. Sweet potato production is estimated to be 65,073.000 bushels which is about 7% below the November forecast and 17% below the 1932 crop of 78,431,000 bushels. The acreage harvested is estimated at 761,000 acres which is about 6% less than the July estimate as in many sections weather conditions were unfavorable for planting the full intended acreage. The greatest reduction was in commercial districts where growers received very low prices for the 1932 crop. This year's acreage is 18% less than the 1932 acreage of 926.000 acres and about 3% below the 1931 acreage of 785,000 acres. Yields were better than last year in the commercial districts of the Atlantic Seaboard, although many crops were damaged by the August storms. Grain Sorghum. The total acreage of grain sorghum for all purposes is estimated at 8.143,000 acne which is 4% above the 1932 acreage of 7,864.000. The production of the acreage for grain and forage expressed as grain is estimated to be 87,884,000 bushels or 17% below the 1932 crop of 106,306,000 bushels. The season was generally quite unfavorable so yields in most States were considerably below the 10-year average, especially in the heavy producing States of Kansas, Oklahoma and Texas. The yield per acre on tho 4,877,000 acres harvested for grain was 11.7 bushels and the production of grain 57,282.000 bushels compared with the 1932 yield of 14.4 bushels and production of 65,339,000 bushels. The 1931 grain production was 70,116,000 bushels. Flaxseed. The 1933 production of flaxseed Is estimated at 6,785,000 bushels compared with 11,671.000 bushels in 1932 and 11,798,000 bushels in 1931. This year's crop was the smallest since 1919. The acreage of flaxseed harvested In 1933 is 1,283,000 acres compared with 1.975,000 acres in 1932 and 2,416,000 acres in 1931, and is the smallest acreage harvested since 1922. Drought and high temperatures, as well as considerable damage from grasshoppers, caused a heavy loss in the planted acreage this year in the Dakotas and Montana. The yield of flaxseed in 1933, 5.3 bushels per acre, Is 10% less than that of 1932 and 29% less than the 10-year average yield, 1921-1930. Yields this year in most States have been lower than in 1932; South Dakota and Minnesota, in particular, showing decided reductions. UNITED STATES GENERAL CROP REPORT DECEMBER 1933. The Crop Reporting Board of the United States Department of Agriculture makes the following report of Crop Acreage, Production, Farm Price and Farm Value for 1933, with revisions for 1932 and 1931, from the latest information available, including data furnished by crop correspondents, field statisticians and co-operating State Agencies. Farm prices are as of Dec. 1 for most crops, but are seasonal averages for crops already marketed. Production. Crop and Year. Acreage Harvested. Per Acre. Total. Unit Corn, All24.4 2,588,509,000 Bush 105,948,000 1931 26.8 2,906.873,000 " 108,668,000 1932 22.8 2.330,237,000 " 102.239,000 1933 All wheat16.3 932,221,000 " 57,103,000 1931 13.0 744,076,000 " 57,204,000 1932 11.1 527,413.000 " 47,493,000 1933 Winter wheat19.0 817.962,000 " 43,080.000 1931 13.5 475,709,000 " 35,276,000 1932 12.4 351,030,000 " 28.420,000 1933 All spring wheat8.1 114,259,000 " 14,023,000 1931 12.2 268,367,000 " 21,928,000 1932 9.2 176,383,000 " 19,073,000 1933 Durum wheat7.0 20.712,000 " 2,960,000 1931 10.3 40,600,000 " 3,946,000 1932 7.0 16,109,000 " 2.310,000 1933 Other spring wheat8.5 93,547,000 " 11,063,000 1931 12.7 227,767,000 " 17,982.000 1932 9.6 160,274,000 " 16,763.000 1933 Oats28.1 1.126,013.000 " 40,084,000 1931 30.1 ,246,658,000 " 41,426,000 1932 19.8 722.485,000 " 36,541,000 1933 Barley17.4 108,543,000 " 11,429,000 1931 22.6 302,042,000 " 13,346,000 1932 15.5 156,109,000 " 10,052,000 1933 Rye32,290,000 " 10.4 3,104,000 1931 12.2 40,639,000 " 3,344,000 1932 21,184,000 " 9.0 2,352,000 1933 Buckwheat8,890.000 " 17.6 505.000 1931 6,727,000 " 14.8 454,000 1932 7,844,000 " 17.0 462,000 1933 Flaxseed4.9 11,798,000 " 2,416,000 1931 5.9 11.671.000 " 1,975,000 1932 6,785,000 " 5.3 1,283,000 1933 Rice46.5 44,873,000 " 964,000 1931 40.408,000 " 46.6 868,000 1932 35.619,000 " 46.3 769.000 1933 Grain Sorghums a" 14.7 105,369,000 7,166,000 1931 13.5 106,306,000 " 7.864,000 1932 10.8 87,884,000 " 8,143,000 1933 Cotton, Lint17,095,000 Bales 38.705,000 1211.5 1931 13,002,000 " 35.939,000 1173.3 1932 13,177,000 " 30,144,000 0209.4 1933 Cottonseed7,603,000 Tons 1931 5.782,000 " 1932 5.858.000 " ____ 1933 Farm Price per Unit. Total Farm Value. $ 5 0.359 929,147,000 .192 558,902.000 .394 917,605,000 .443 413,075,000 .320 238,305,000 .678 357,525,000 .433 .338 .714 354,114,000 160,675,000 250,601,000 .516 .289 .606 58,961,000 77,630,000 106,924.000 .456 .243 .629 9,436,000 9,863,000 10,133,000 .529 .298 .604 49,525,000 67,767,000 96,791,000 .230 .134 .304 259,553,000 167,333.000 219,520,000 .353 .201 .407 70,034,000 60,689,000 63,486,000 .388 .223 .554 12,524,000 9.073.000 11,737,000 .424 .400 .531 3,770,000 2,691,000 4,163,000 1.199 .848 1.518 14,145,000 9,897,000 10,301,000 .608 .391 .779 27.268,000 15,792,000 27,765.000 .300 .193 .407 31,601,000 20,473,000 35.802.000 c.057 490,668,000 c.057 371,861,000 c.094 617,716.000 10.44 9.27 13.58 79.340.000 53,627,000 79,532,000 Financial Chronicle Volume 137 Production. Crop and Year. Acreage Harvested. Per Acre. Total. Farm Price per Unit. Unit. $ Hay, All1931 66,389,000 1.11 73,708,000 " 1932 67,617.000 1.22 82,405,000 " 1933 66,144.000 1.13 74,485,000 " Hay, Tame1931 54.136,000 1.21 65,341,000 " 1932 53.342.000 1.32 70,268,000 " 1933 53,829,000 1.22 65,852,000 " Hay. Wild12.253,000 1931 .68 8,367,000 " 14,275.000 1932 .85 12,137,000 " 12,315,000 1933 .70 8,633.000 " Sweet Sorghums d 2,333,000 1931 1.52 3,553,000 " 2,633,000 1932 1.46 3,845,000 " 1933 3,363,000 1.43 4,800,000 " Timothy Seed1931 2.045,900 Bush. 508,800 4.02 1932 372,400 3.78 1.406.400 " 1933 292,400 3.10 907,800 " Clover seed (red & alsike)1931 1.35 825.100 1,118,000 " 1,100.600 1932 1.53 1,686,400 " 1933 1,006.000 1.39 1,399,600 " Sweetclover seed1931 247,600 3.38 837,700 " 208,700 1932 3.32 692,600 " 1933 208,900 3.30 689,800 " Lespedeza seed e168,500 1931 7.32 1,233,800 " 182,600 1932 8.74 1,596,400 " 309,100 10.59 1933 3,277,000 " Alialta seed361.100 1931 2.32 838,900 " 274.400 1932 1.95 535,800 " 382,300 1933 2.41 922,900 " Beans, dry edible1931 1,913,000 8671 12,843,000 Bagsf 1,408,000 1932 8742 10,440,000 1,671,000 1933 6735 12,280.000 " Soybeans 01,301,000 1931 14.9 19.433.000 Bush 1,153.000 1932 14.6 16,821,000 "i 1933 13.0 1,115.000 14,488,00 " Cowpeas 01,026,000 1931 10.3 10,524,00 " 1932 1,227,000 11.084.000 " 9.0 1933 1,072.000 93 9,954,000 " Peanuts g1931 2.145,000 724 1,553,840,000 Lbs 1932 2,425.000 594 1,440,720,000 " 1933 2,093,000 640 1,340,200,000 " Velvet beans a1931 1,044,000 375,000 Tons e718 1932 1,401,000 e836 586,000 " 1933 1,442.000 e845 609,000 " Potatoes1931 3,366,000 110.8 372,994,000 Bush 1932 3,381,000 105.9 358,009,000 " 1933 3,184,000 99.6 317,143,000 " Sweet potatoes1931 80.3 785,000 63.043,000 " 1932 84.7 78,431.000 " 926.000 1933 6.5,073,000 " 85.5 761,000 Tobacco1931 708 1,607,484,000 Lbs 2,014,000 1,413,800 1032 723 1,022,558,000 " 1933 1,753,700 796 1,396,174,000 " Apples, total1931 202,415,000 Bush 1932_h 140,775,000 " 1933 143,827,000 " Apples, commercial1931 34,592,000 13b1s 1932 28,592,000 " 1933 25,739,000 " Peaches, total1931_h 76,586,000 Bush 1932_h 42,443.000 " 1933.h 45,326.000 " Pears, total1931_h 23,346,000 " 1932_h 22,050,000 " 1933.h 21,192,000 " Grapes, total 8-1931_h 1,621,837 Tons 1932_h 2,203,768 " 1933.h 1,808,58 " Cherries (12 States)1931_h 112,10 " 1932_h 127,118 1933.h 112,498 Plums and Prunes, fresh (4 Sta tes)1931_h 116,850 " 1932.h 151,500 " 1933_h 112,140 Prunes, dried (3 St ates)1931 244.757 1932.h 195,000 1933 196,750 Oranges (7 States)1931 50,164,000 Boxes 1932 50,930,000 " 1933 48,216.000 " Grapefruit (4 State 8)1931 15,371,000 " 1932 15,326,000 " 1933 12,689,000 " Lemons (California )1931 7,800,000 " ' 1932 6.715,000 " ____ 1933 6,800,000 " Cranberries24.0 27,750 666.000 Bbls 1931 27,630 20.4 564,836 " 1932 24.2 27,650 667,700 " 1933 Pecans77.800,000 Lbs 1931 _ 53,560,000 " 1932 61,210.000 “ 1933 Sorgo sirup68.8 17,818,000 Gals 259,000 1931 60.8 250,000 15,209.000 " 1932 62.3 14,961,000 " 240,000 1933 Sugar cane, Loutsla na2,717.000 Tons 184,000 14.8 1931 3,359,000 " 223,000 15.1 1932 14.7 3,125,000 " 213.000 1933 Cane sirup14,359,000 Gala. 103,000 139.4 1931 16,985.000 " 110,000 154.4 1932 19,106,000 " 125,000 152.8 1033 Sugar beets7,903,000 Tons 11.1 713.000 1931 9,070.000 " 764,000 11.9 1932 984,000 11.3 111085,000 " 1933 Maple sugar-1,646,000 Lbs. 512,138.000 88.59 1931 1,623.000 " 512,091,000 88.73 1932 1.322.000 " 512.076.000 h1.55 1933 Total Farm Value. $ 8.71 6.26 7.77 641,892,000 515,667,000 578,553.000 9.03 6.65 8.10 590.255,000 467.283,000 533,589,000 6.17 3.99 5.21 51,637,000 48,384,000 44,964,000 .5.71 4.05 5.16 20,283,000 15,574,000 24.764,000 1.63 1.01 1.99 3,345,000 1.420,000 1,802.000 7.12 4.63 5.87 7,960,000 7,808,000 8.212,000 2.67 1.52 1.95 2,237,000 1,055,000 1,343,000 2.50 1.37 1.16 3,086,000 2,195,000 3.790,000 6.92 4.98 5.30 5.806,000 2,670,000 4,890.000 2.45 1.63 2.71 31,489,000 17,039,000 33,226,000 .626 .535 .820 12,164.000 9,005,000 11,882,000 .927 .622 .944 9.760,000 6,895,000 9,393,000 .019 .013 .026 29,137,000 18,747,000 34,175,000 9.87 4.76 8.60 3,700,000 2,789,000 5.235,000 .430 .353 .702 160,492,000 126,264,000 222,667,000 .574 .376 .582 36,185,000 29,518,000 37.851.000 .082 .105 .129 131,498,000 107,357.000 180,647,000 .578 .524 .681 116.949.000 73,645,000 97,949.000 1.81 1.52 1.97 62,480,000 43,558,000 50,691,000 .562 .529 .756 40.726,000 18,897,000 32,618,000 .602 .393 .525 13,667,000 7,627,000 10.252,000 22.40 13.16 17.82 36,100,000 26,983,000 32,114,000 74.74 43.72 50.36 7,964.000 5,157,000 6,312,000 22.29 11.02 20.54 2,449,000 1,559.000 2,160,000 60.14 54.61 79.19 14,719,000 10,430,000 15,580,000 1.33 1.10 1.11 66,798.000 55,791.000 53,623,000 1.06 .83 .97 16,259.000 12,771,000 12.303,000 1.95 2.10 2.10 15.210,000 14,102.000 14,280.000 5.99 7.13 5.62 $ .079 .056 .078 3,992,000 4,029,000 3,752.000 S 6,157,000 2,998,000 4,749,000 .430 .378 .479 7,654,000 5,750,000 7,170,000 3.55 3.10 3.43 9,648,000 10,730,000 10,721,000 .501 .399 .471 7,195,000 6.780,000 8,992,000 5.94 5.26 5.32 46,948,000 47,705,000 58,988.000 .257 .245 .210 423,00( 398,00C 278,00( 4427 Production. Crop and Year. Maple sirup-1931 1932 1933 Broomcorn1931 1932 1933 Hops1931 1932 1933 Acreage Harvested. Per Acre. Total. 512.138,000 512,091,000 512,076,000 h1.59 88.73 h1.55 298,000 304,000 296,000 8303 6244 6221 21,400 22,000 26,500 1,234 1,094 1.375 Farm Price Per Unit Unit. $ 2,213,000 Gals. 2,412,000 " 2,175,000 " Total Farm Value. $ 1.72 1.51 1.18 3.800.000 3,651,000 2,567,000 45,200 Tons 50.82 36,900 " 43.41 32,900 " 108.94 2.297.000 1,602,000 3,584,000 26,410,000 Lbs. 24,058,000 " 36,440,000 " .138 .175 .303 3,642,000 4,199,000 11,059,000 Commercial Truc k CropsAsparagus 1-1931 102,030 13,859,000 1932 110,790 10.275,000 1933 116,500 9,840,000 Beans,lima 11931 2,425,000 40,630 1932 31,000 1,520,000 28,180 1933 1,081,000 Beans, snap 1167,140 . 16,019,000 1931_m 1932 m 153,710 12,129,000 1933 m 157,910 11.624,000 Beets 1-1,109,000 15,720 1931.n 13,710 1932 889,000 1933 1,024,000 14,440 Cabbage 1 1,017,200 Tons 10.38 150,360 9,827,000 6.77 1931.n 987,100 " 140,310 11.60 11,168.000 7.04 1932.n 17.48 723,200 " 124,770 12,531,000 1933 5.80 Cantaloupes1.00 17,817,000 Crates 129 138,310 17,385,000 1931_n 125 135,780 11,485,000 .83 17,021,000 " 1932.n .81 9,589,000 1933 117 • 12,762,000 " 109,050 Carrots12,314,000 Bush. .48 5.102,000 1931_n 395 31,190 .60 10,815,000 " 6.316,000 362 29,850 1932_n .47 4,984,000 10,565.000 " 1933 32,430 326 Cauliflower.77 7,194,000 Crates 1931 5,554,000 29,360 245 .63 4.766.000 7,730,000 " 1932.n 243 31,800 4.321.000 .62 30,150 1933 238 7,162,000 " Celery1.84 1931 16,904,000 9,204,000 " 279 32,950 1.17 11,296,000 1932_n 9,894,000 " 278 35,600 1.27 1933 10,681,000 8,624,000 " 31,250 276 Corn, sweet (canal ng)1931 781,600 Tons 11.05 8.634,000 356,730 2.19 2,901.000 7.50 1932 164,930 386,900 " 2.35 8.00 1933 3.145,000 196,090 393,000 2.00 " Cucumbers I-7,675,000 1931_n 136,740 3,246,000 1932.n 77,610 1933 3,908,000 96,570 Eggplant1931 .74 601,000 811,000 Bush 3,900 208 .64 1932 520,000 809.000 " 3,650 222 1933 488,000 .54 910,000 " 4.000 228 Lettuce-1.48 28,944,000 1931 19,609,000 Crates 175,430 112 1.26 21,729.000 1932_n 17.820,000 " 163,650 109 21.940,000 1.28 1933 17,149,000 " 123 139,110 Onions14,490,000 .79 1931_n 19,163,000 Bush 77,630 247 10,435,000 1932_n .39 27,906,000 " 91,670 304 12,611,000 1933 .61 20,802,000 " 78,250 266 Peas, Green 116.602,000 1931 306,670 13.996,000 1932 299,24013,498.000 1933 323,640 Peppers3,348,000 .77 1931 18,100 242 4.376,000 Bush. 2,761,000 .71 1932 3,894,000 " 17,270 227 .48 2,040,000 1933 4,227.000 " 17,590 240 Potatoes, Early29,088,000 .63 1931 46,072,000 " 346,800 133 19,578.000 .59 1932 33,320,000 " 121 275,400 1.02 31,552.000 30.791,000 " 1933 252,600 122 Spinach 15,765.000 56,84 1931_n 5,743,000 _--1932.n 54,450 ____ 4,678,000 1933 74,07 Strawberries 13.32 36.988.000 11,156,000 Crates 1931 74.1 150,460 1.89 24,549.000 13,369,000 " 1932 70.5 189.570 1.69 20.970,000 12,718.000 " 64.6 196,950 1933 Tomatoes 1____ 29,852,000 454,76 1931_n 30,413.000 -437,41 1932.n __ 29,245.000 1933 412,880 Watermelons7,344.000 75,509,000 No.0101.00 238,820 316 1931_n 4.162.000 60,623,000 " 080.00 260 233,230 1932_n 4.634,000 49.983,000 " 095.00 269 185,950 1933 Miscellaneous P2,989.000 ---39,640 1931 3.015.000 _ 1932 39.540 ____ 2,818,000 38,500 1933 Total truck cropsFor market (exce pt potatoes)__ 208,590.000 1.602,450 1931 166,250,000 1932 1,667,620 155,551,000 1,536,170 1933 For manufacture42,826.000 . 1,120,960 1931 27.064,000 787,150 1932 1933 872,110 TOTAL OF CROPS LISTED ABOVE Production. Crop and Year. 1931 1932 1933 Acreage Harvested. 354,850,660 359,482,900 327,324,230 Per Acre. ____ Total. Farm Price Per Unit. Unit. Total Farm Value. _ 4,102,354,000 _ 2,879.517,000 ____ 4,076,537,000 a All purposes. b Pounds. c Per pound. d For hay and forage, but not included in tame hay. e Bushels of 25 pounds. .1 Bags of 100 pounds. g Includes the acreage, production and value of that part of the crop gathered, grazed or hogged off in the Southern States, but acreage cut green and value of vines cut of saved for hay not included. Quantity and value of the matured crop gathered are shown In the following State tables. h Includes some qaantitles not harProduction is the total vested. Values and prices are for the portion harvested. for fresh fruit. Juice and raisins. 3 Trees tapped. k Total equivalent sugar Per tree. 1 Includes production used :or canning or manufacture. m Includes some quantities not harvested. Values are for portion harvested. n Includes some quantities not harvested. Values and prices are for portion harvested. o Per 1,000 melons. p Includes following crops In certain States: Artichokes, sweet corn and kale for market and pimientos for manufacture. 4428 Financial Chronicle Dec. 23 1933 WIN!ER WHEAT. Acreage Harvested. Slate. 1931. 1932. 1933. 1,000 1,000 Acres. Acres. 201 191 N. Y 49 48 N.J Pa 898 889 Ohio 1,713 1,576 Ind 1,710 1,454 1,917 1,553 III 701 691 Mich 24 37 Wis 152 170 Minn313 229 Iowa 1,589 1,398 Mo so.Dak 185 226 3.294 2.075 Nebr 13,609 10,347 Kans 91 79 Del 404 380 Md 603 579 Va 113 116 W.Va 339 376 No.Car 53 80 So. Car.__ 49 74 Ga 252 270 Hy 252 272 Tenn 4 6 Ala 36 31 Ark 4,407 3,966 Okla 4.386 3.330 Texas 412 618 Mont 652 621 Idaho 164 148 Wyo 487 1,218 Colo N.A4ex 446 245 24 38 Ariz 194 184 Utah 3 1 Nev 1,311 1,114 Wash 825 751 Ore .518 595 Calif Production, DURUM WHEAT. Farm Value.a 1931. 1932. 1,000 1,000 1,000 Acres. Bush. Bush. 225 5,126 3,916 45 1,323 1,008 871 19,756 13,335 1,828 50.534 32,308 1,541 44,289 23,264 1,662 45,050 23,295 808 18,226 16,584 32 456 722 158 3,192 3,570 211 6,573 3,778 1,328 31,780 15,658 174 1,166 4,294 2,023 55,998 25,938 6,759 251,766 120,025 77 2,138 908 395 9,696 4,940 550 13,266 6,253 124 2,373 1,276 391 4,407 3,572 74 689 760 67 637 703 270 5,544 2,835 272 4,410 2,584 4 50 60 27 475 248 3.093 74,919 43,626 1,973 68,097 28,293 649 3,914 12,360 535 10,557 14,996 1,394 1,554 101 268 14,616 4,626 220 9,113 1,593 798 46 672 180 2,716 3,128 19 2 66 .557 30,153 20,736 225 15,262 15,020 655 7,563 11,126 1933. 1931. 1932. 1933. 1,000 Bush. 4,388 990 15,678 34,732 22,344 26,592 13,332 464 2,370 3,587 16,600 870 25,894 57,452 1,078 6.320 7.425 1,798 3,714 592 536 3,240 2,774 34 216 33.095 13,022 6,166 8,025 808 2,412 1,210 1,288 2,340 48 13,090 4,388 12,118 1,000 Dollars 2,922 754 11,063 25,267 19,930 20,272 9,113 260 1,660 2,958 14,301 536 22,399 93,153 1,133 5,042 7,694 1,448 3,173 572 673 2,994 2,866 40 247 28,469 27.920 2,035 4,751 627 6,285 4,101 444 1,439 50 15,076 7,631 4,916 1,000 Dollars 1,919 554 6,934 13,246 8,608 8,153 6,136 332 1,250 1,247 5,637 1,074 7,003 34,807 481 2,470 3,502 727 2,429 502 464 1,304 1.395 36 104 12,215 7,922 3,090 4,049 404 1,388 462 439 1,095 11 8,021 5,257 6,008 1,000 Dollars 3,598 871 12,699 26,396 16,311 19,678 9,599 353 1,612 2,475 12,118 496 16,572 40,216 927 5,246 6,534 1,546 3,788 704 649 2,722 2,580 42 181 22,505 8,985 3,330 4,253 920 1,495 823 1,108 1,451 38 7,330 2,589 8,361 U. S._ _ _ _ 43,080 35,276 28,420 817,962 475,709 351,030 354,114 160,675 250,601 a Based on Dec 1 farm price. These values differ from values and income estimates which are based on season average farm price. ALL WHEAT. Production. Acreage Harvested. State. 1931. 1932. 1933. Me Vt N. Y N. J Pa Ohio Ind III Mich Wis Minn Iowa Mo No. Dak So.Dak Nebr Hans Del Md Va W. Va No.Car So. Car..... Ga Ky Tenn Ala Ark Okla Texas Mont Idaho Wyo Colo N . Mex Ariz Utah.. Nev Wash Ore Calif Farm Value.a 1932. 1933. 1931. 1932. 1931. 1932. 1933. Minn No. Dak__ So. Dak _ Mont 1931. 1932. Farm Value.a 1931. 1933. 1932. 1933. 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Acres. Acres. Acres. Bush. Bush. Bush. Dollars Dollars Dollars 126 110 88 1,764 1,430 429 581 880 882 1,977 2,867 2,093 13,444 27,236 14,651 6,184 6,809 9,230 93 5,440 11,334 837 929 326 2,339 2,493 186 20 40 36 252 31 132 136 64 600 4 States_ 2,960 3,946 2,310 20,712 40.600 16.109 9,436 9,883 10,133 a Based on Dec 1 farm price. These values differ from values and income estimates which are based on season average farm price. OTHER SPRING WHEAT. Acreage Harvested. State. Production. 1931. 1932. 1933. 1,000 Acres. Me. 2 Vt 1 N.Y 10 Pa 11 Ohio 10 Ind 15 Ill 99 Mich 10 Wis 64 Minn 946 Iowa 44 Mo 7 No. Dak_ _ 4,318 So. Dak._ 1,774 Nebr 126 Hans 14 Mont. 1,750 Idaho 360 Wyo 76 Colo. 168 N. Mex_ 27 Utah 63 Nev 11 Wash. 1,037 Ore 120 1,000 1,000 Acres. Acres. 3 5 _ --io 8 9 7 5 14 10 99 59 11 10 73 72 1,182 1,383 44 44 6 3 7,772 7,461 2,803 981 202 414 18 15 3,412 2,968 540 540 129 133 193 280 31 25 76 74 17 15 1,089 1,579 240 672 Farm Value.a 1931. 1932. 1,000 Bush. 44 21 185 231 210 255 1,930 200 1,088 13.055 748 133 26,772 10.112 945 126 10,500 7,020 798 2,016 486 1,575 253 12,444 2,400 1,000 1,000 1,000 Bush. Bush. Dollars 120 66 31 17 -iio "iii 128 130 105 139 148 80 99 238 140 115 1,683 826 868 187 125 110 1,387 1,152 631 15,839 13,415 7,441 572 572 352 75 39 66 83.160 50,735 13,921 37,840 3,924 5.157 2,020 3,312 387 153 44 52 42,650 20,776 5,880 15,660 11,340 3,370 1,548 1.330 375 2,509 3,500 927 434 275 243 2,204 1,739 882 442 330 202 13,612 33,159 6,844 5.040 13,104 1,296 1933. 1931. 1932. 1933. 1,000 1.000 Dollars Dollars 120 44 94 "Ha 72 85 59 59 88 104 606 611 80 90 638 876 5,544 9,390 194 389 28 29 24,116 31,456 10.595 2,394 505 1,987 41 29 11,516 11,842 4,072 6,010 433 771 803 1,960 156 190 838 1,061 243 271 5,036 19,232 1,966 7,731 1933. 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Acres. Acres. Acres. Bush. Bush. Bush. Dollars Dollars Dollars 44 31 5 66 120 44 2 3 120 a Based on Dec. 1 farm price. These values differ from values and income estimates which are based on season average farm price. WHEAT, BY CLASSES. 201 211 49 48 909 898 1,723 1,585 1,725 1.468 2.016 1,652 702 711 88 110 1,224 1,462 357 273 1,696 1,404 6,295 10,639 2,796 3,958 3,420 2,277 13,623 10,365 91 79 380 404 579 603 116 113 376 339 80 53 49 74 270 252 272 252 4 6 31 36 4,407 3,966 4,386 3,330 2,182 4,070 981 1,192 277 240 680 1,386 276 473 38 24 260 257 18 14 2,348 2,203 991 945 595 518 233 5,311 4,086 45 1,323 1,008 878 19,987 13,465 1,833 50,744 32,456 1,551 44,544 23,502 1,721 46,980 24,978 818 18,426 16,771 104 1,544 2,109 1,629 18,011 20.839 255 7,321 4,350 1,331 31,913 15,733 9,554 40,216 110,396 1,248 16,718 53,468 2,437 56,943 27,958 6,774 251,892 120,178 908 77 2,138 395 9,696 4,940 550 13,266 6,253 124 2,373 1,276 391 4,407 3,572 689 760 74 67 637 703 270 5,544 2,835 272 4,410 2,584 4 50 60 248 475 27 3,093 74,919 43,626 1,973 68,097 28,293 3,653 14,478 55,610 1,075 17,577 30,656 234 2,192 3,102 548 16,632 7,135 245 9,599 2,027 46 672 "8 798 254 4,291 "5,332 319 - 461 17 2,136 42,597 "40,348 897 17,662 20,060 655 7,563 11,126 4,512 990 15,783 34,812 22,484 27,418 13,457 1,616 16.665 4,159 16,639 65,386 5,120 29,206 57,504 1,078 6,320 7,425 1,798 3,714 592 536 3,240 2,774 34 216 33,095 13,022 27,194 19,365 2,138 5,912 1,485 1,288 4,079 378 46,249 17,492 12,118 3,050 754 11,202 25,366 20,045 21,140 9,223 891 9,983 3,310 14,367 20,105 8,032 22.786 93,197 1,133 5,042 7,694 1,448 3,173 572 573 2,994 2,866 40 247 28,469 27,920 ,7,946 .8.121 1,002 7,212 4,344 444 2,321 252 21,920 8,927 4,916 2,013 554 7,006 13,305 8,696 8,759 6,216 970 7,223 1,441 5,665 30.925 14,162 7,508 34,848 481 2,470 3,502 727 2,429 502 464 1,304 1,395 36 -.104 12,215 7,922 14,738 8,121 -7 1837 2,191 " .6i8 , 1 439 • 1,933 - 254 13,057 7,223 6,008 3,702 871 12,784 26,455 16,415 20,289 9,689 1,229 11,583 2,864 12,147 40,686 3,076 18,559 40,245 927 5,246 6,534 1,546 3,788 704 649 2,722 2,580 42 181 22,505 8,985 15,308 10,263 1,191 3,455 1,013 1,108 2,512 309 26,562 10,320 18.361 U. R.__ 57,103 57,204 47,493 932,221 744,076 527,413 413,075 238,305 357,525 on Dec 1 farm price. These values differ from values and income estimates which are based on season average farm price. ALL SPRING WHEAT. Acreage Harvested. 1931. 1932. 1933. Production. 1931. 1932. O. t Vu).. clotO.kilvcImMt..,.V.4, Wt-,4 Ovi cON 0000.1.M.MN.00CINNOONOOM.Cts0,0 1,000 1,000 1,000 Acres. Bush. Bush. ACM. 44 66 Me 5 2 ___ 121 vl -170 185 N. Y 10 8 130 231 7 Pa 11 148 210 Ohio 5 10 238 255 10 Ind 15 III 59 1,930 1,683 99 187 200 Mich 10 10 Wis 64 72 1,088 1,387 Minn 1,072 1,471 14,819 17,269 572 44 748 Iowa 44 75 Mo 133 7 3 6,295 No. Dak_ 9,554 40,216 110.396 So.Dak._ 2,611 1,074 15,552 49.174 126 945 2,020 Nebr 414 14 126 153 Hans 15 1.770 3,004 10,564 43,250 Mont 360 540 7,020 15,660 Idaho 76 133 798 1.548 Wyo 168 280 2,016 2,509 Colo 27 25 486 434 N.Mex.__ 63 74 1,575 2,204 Utah 11 15 253 442 Nev 1,579 12,444 13,612 1,037 Wash 120 672 2,400 5,040 Ore 1,000 U.8 Production. 11,063 17,982 16,763 93,547 227,767 160.274 49,525 67,767 06,791 1931. 'Oa Based State. Acreage Harvested. State. Farm Value.a 1933. 1931. 1,000 Bush. 120 ___ -124 105 80 140 826 125 1.152 14,295 572 39 65,386 4,250 3,312 52 21,028 11.340 1,330 3,500 275 1,739 330 33,159 13,104 1,000 Dollars 31 17 128 139 99 115 868 110 631 8,323 352 66 20,105 7,496 387 44 5,911 3,370 375 927 243 882 202 6,844 1.296 1932. 1933. 1,000 1,000 Dollars Dollars 44 120 .._ ii "ioi 72 59 88 606 80 638 5.973 194 28 30,925 13,088 505 41 11.648 4,072 433 803 156 838 243 5.036 1.966 85 59 104 611 90 876 9,971 389 29 40,686 2.580 1,987 29 11,978 6.010 771 1.960 190 1,061 271 19.232 7,731 14,023 21.928 19,073 114.259 268.367 176,383 58,961 77,630 106.924 Spring. Winter. Hard Red. Soft Rrd. Hard Red. Durum, 1,000 Bush. 515,925 277,450 169,720 1,00 Bush. 254,480 149,425 146,879 1,000 Bush. 70,376 191,444 103,928 1,000 Bush. 21,260 41,607 17,443 Year. 1931 1932 1933 White. (Winter & Speg) Total. 1,000 Bush. 70,174 84,150 89,443 1.000 Bush. 932,221 744,076 527,413 CORN.a Acreage Harvested. 1,000 Acres. Production. 1,000 Bushels. I Farm Value.b 1,000 Dollars. State. 1931. 1932. I 1933. 14 16 14 13 64 64 Vt 38 Mass.__ 371 8, 9 Conn 511 54 566 583 N. Y._ N. J.. _ _ 170 165 1,2681 1.255 Pa Ohio...... 3.5761 3,433 Ind....._ 4,734 4,639 9,5411 9,311 Ill 1,407] Mich 1,4071 Wis.__ 2,080, 2.184 Minn.__ 4,8961 4,945 Iowa_ _ _ 11,7321 11,849 6,472i 8,472 Mo _ _ N.oak_ 1,1901 1,404 S. flak.. 4.8371 5,030 Neb....... 10,042 10,644 Kan.._ _ 6,573' 7,362 146' 147 Del.... 595 548 Md.-_ 1,527 1,496 Va 446 446 W.Va._ 2,345 2,322 N.C 1,608 1,656 S.C 3,672 3,856 Ga 674 687 Fla ;0,928 2.811 Ky Tenn.__ .., 2,927 2,9271 3,042 3.224j Ala_ _ Miss_ ..2,299k2,414 1,954 1,993 Ark_ La -- 1,1,287 1,261 11,3,3211 3,288 Okla_ Tex_.. .. 5,238 5.707 Mont .s.123 215 Idaho _. A 42 55 Wyo. .. 190 228 Colo .... 1,836 1,909 N. Mex. 283 297 Ariz.... 36 41 16 Utah...... 20 2 2 Nev Wash..._ 371 38 Ore...... 63 65 Calif......90' 95 Me 17 15 63 38 10 53 566 167 1,280 3,364 4,268 8,324 1,361 2,228 4,846 11,138 6,019 1,334 3,370 10.431 6,994 145 560 1,571 464 2,392 1,573 3,740 673 2,727 2,810 3,031 2,3901 2,053 1,198 2,593 5,422 215 50 219 2,004 238 41 21 2 41 71 100, 1931. 588 5981 2.9441 1.5911 34 2.1421 22.0741 6.9701 62.7861 160,9201 184.6261 353,128 40,9441 58,240 115,056 385,983 177,980 22.015 25,152 170,714 115,028 4,745 20,710 43,061 12,934 48,072 22,994 36,720 5,729 83,448 73,175 42,588 42,532 43,965 20.592 51,808 91,630 1,722 1.5121 1.9001 17.4421 4,5281 5761 3201 401 1,3691 1.9841 2.610 1932. 656 560 2,624 1,520 351 2,268 20,405 6,930 46,435 121,872 173.962 402,179 46,431 80.808 180,492 509,507 197,396 26,676 73,941 269,293 136,197 4,263 16,440 26,928 11,150 34,830 17,885 38,560 5,840 67.464 59,418 37,076 32,589 35,874 17,906 65,760 102,726 2,580 2,255 2,052 14,318 3,267 615 540 48 1,311 2.015 2,660 1933. 1931. 1932. 1933. 697 412 474 308 600 407 396 224 2,520 1,855 1,312 1.638 1,520 955 760 1,034 410 308 206 176 2,067 1,499 1,225 1,488 17,546 13,244 9,182 10,879 6,012 3,624 2,911 3,126 50,560 28.872 19.038 26,291 112,694 54,713 23,156 39.443 125.9061 51,695 26,094 41,549 224,7481105,938 60,327 78,662 42,315 16,378 12,536 18,194 77,980 27,373 21,010 31,972 142,957 42,571 27,074 44,317 439,951,135,094 61,141 136.385 141,446 68,733 37,505 55,164 20.010 8,146 4,001 7,404 40,440 10,312 9,612 14,154 234,698 64,871 37,701 70,409 80,431! 36,659 20,430 28,151 3,6251 1,898 1,194 1.776 14,000 8,284 5,096 6,440 36,9181 19,808 11,040 20,674 13,920, 6,726 5,018 8,352 44,252' 20,671 15,325 29,206 22,8081 10,117 7,691 15,053 39,270 16,891 12,725 23,562 5,384 3.036 2,219 3,392 68,175 30,041 18,215 31,360 66,035 27,806 17,231 32,357 36,978, 17,461 13,718 24,036 35,850 17,013 11.406 20,434 27.7161 16,267 10.403 16,075 15,574, 9,678 6,625 8,877 19,485 15,54211,837 9,158 74,824 29.322 23,627 38,160 774 1,236 982 2,472 609 1,014 801 1,950 874 595 855 2,080 22,044 6,977 3,150 7,495 3,332 1,947 1,143 2,033 554 430 495 738 295 221 254 483 31 29 28 44 498 779 684 1,558 987 1,207 2,414 1,290 2,800 1.749 1,250 1.736 U.S.... 105,948 108,668102,2392588,50 2906.873 2330,237 929.147 558,902917,605 I a This table covers corn for all purposes, Including hogged and shoed corn. and that cut and fed without removing the ears, as well as that husked and snapped for grain. The yield for grain, with an allowance for varying yields of corn for other purposes, Is applied to the total acreage to obtain an equivalent production of all corn. b Based on Dec. 1 farm price. Differs from value and income estimates which are based on season average price. Financial Chronicle Volume 137 CORN, FOR GRAIN. 1%, and in the North African countries a 10% decrease. The Asiatic Countries, on the other hand,show an increase of about 1%,and Argentina a 10% increase. Production. Acreage Harvested. State. 1931. 1932. 1933. 1,000 Acres. 1,000 Acres. 1,000 Acres. Maine New Hampshire Vermont Massachusetts Rhode Island Connecticut New York New Jersey Pennsylvania Ohio Indiana Illinois Michigan Wisconsin Minnesota Iowa Missouri North Dakota South Dakota Nebraska Kansas Delaware Maryland Virginia West Virginia North Carolina South Carolina Georgia Florida Kentucky Tennessee Alabama Mississippi Arkansas Louisiana Oklahoma Texas Montana Idaho Wyoming Colorado New Mexico Arizona Utah Nevada Washington Oregon California United States 1931. 1932. 1.000 1,000 Bushels. Bushels. 82 84 135 120 328 322 387 360 43 39 504 546 3,900 3,710 5,334 5,628 46,827 34,188 145,145 109,908 173,667 162,638 320,087 376,035 26.994 23,591 19,633 33,554 74,784 121,654 332,567 442,212 157,712 179,248 3,478 2,432 22,911 55,786 155,516 253,126 99.270 120,023 4,615 4,147 15,300 19,380 40,411 25,398 12,122 10,200 46.002 33,045 17,464 22,480 37,210 35,400 5,482 5,593 76,412 65,040 71,350 57,611 38.570 42,238 32,224 41,792 33,444 40,680 20,176 17,594 50,448 64,790 89,232 100,026 402 780 1,230 936 792 790 14,016 15,340 2,827 3,888 435 400 216 154 24 24 420 407 992 750 1,600 1,584 1933. 1,000 Bushels. 123 120 320 360 41 546 3,813 4,680 38,196 103,622 116,614 200,205 28,352 33,372 96,170 405,942 131,016 2,128 31,944 221,985 66,576 3,500 13.125 35,274 13,268 42,550 22,286 38,000 5,168 65,600 64,508 36,710 35,340 26,582 15,353 18.255 72,464 408 1,287 934 21,396 2,604 522 230 22 608 1,190 1,696 2 3 7 9 1 12 100 134 946 3,190 4,453 8,651 761 677 3.116 9,987 5,735 188 2,794 9,148 5,515 142 510 1,433 418 2,244 1,572 3,540 645 2,729 2,864 3,017 2,259 1,808 1,261 3,153 5,099 23 26 72 1,461 243 25 7 1 11 25 48 2 3 8 9 1 13 106 127 924 3,096 4,337 8,745 818 883 3,333 10,284 5,877 128 3,576 10,005 8,317 143 510 1,411 408 2,203 1,617 3,721 658 2,710 2,838 3,180 2,387 1,858 1,239 3,176 5,557 60 30 79 1,649 257 29 8 1 12 32 50 3 3 8 9 1 14 123 130 967 3,048 3,953 7,415 886 927 3,260 10,277 5,459 133 2,203 9,866 5,548 140 525 1,501 428 2,300 1,537 3,619 646 2.624 2,745 3,009 2,356 1,969 1,181 2,434 5,251 34 33 89 1,783 186 29 10 1 16 35 53 90,055 94,415 88.767 2,229,088 2,507,303 2,025.015 Foreign Crop Prospects. The latest available information pertaining to cereal crops in foreign countries, as reported by the Foreign Service of the Bureau of Agricultural Economics to the United States Department of Agriculture at Washington, and given out OD Dec. 19, is as follows: Wheat. Present estimates of the 1933-1934 wheat production indicate a world crop, excluding Missla and China,of about 3,586,000,000 bushels compared with 3,771,000,000 bushels last year. This is the smallest world crop since 1929. The most important addition during the past month was the release of the first official forecast of the production in Argentina. This forecast indicates a crop of 256,175,000 bushels compared with 235,378,000 bushels harvested last year. A recent report from Australia confirms the forecast of a crop 160,000,000 bushels compared with 212,398,000 bushels in 19321933. The estimate of the Canadian crop was reduced about 11,000,000 bushels to 271,821,000 bushels. Practically all the other changes received during the past month were upward revisions. The total for 29 European countries has been increased to 1,691,571.000 bushels compared with 1,490,730,000 bushels last year. Rye. The 1933 European rye crop in 23 European countries is reported at 972,225,000 bushels compared with 923,906,000 bushels in 1932. The first forecast of the production in Argentina is 10,078,000 bushels against 12.991,000 bushels last year. WHEAT AND RYE PRODUCTION IN SPECIFIED COUNTRIES, 1930-31 TO 1933-34 (1,000 BUSHELS). Country.s WheatUnited States Canada Mexico Total (3) Europe: Danube countries (4) Other countries (25) Total Europe(29) North 'Africa (6) Asia (5) Total (43) Argentina Australia Union ot South Attica Total (3) Total 46 countries RyeUnited States Canada Europe (23) Turkey Argentina 1930-31. 1931-32. 1932-33. 858,911 420,672 11,446 932,221 321,325 16,226 744,076 428,514 9,658 527,413 271,821 11,753 1,291,029 1.269,772 1,182,248 810,987 352,753 1,009,192 370,470 1,064,324 223,997 1,266,733 361,161 1,330,410 1,361,945 1,434,794 1,490,730 1,691.571 104,587 540,065 115,787 503,292 127,605 456,534 107,287 493,346 3,297,626 3,323,645 3,257,117 3,103,191 232,285 213,594 9,297 219,696 190,612 13,713 235,378 212,398 10,627 256,175 160,000 9,370 1933-34. 455,176 424,021 458,403 425,545 3,752,802 3,747,666 3.715,520 3,528,736 46,275 22,018 912,061 12,188 4,129 32,290 5,322 766,987 13,960 9,744 40,639 8,938 923,906 7,803 12,991 21,184 4.725 972,225 9,842 10,078 996,671 828,303 993,677 1,018,054 Total 27 countries a Figures in parentheses indicate the number of countries included. Barley. The 1933 barley production in 36 foreign countries totals 1,101,181,000 bushels, which is a decrease of 2.5% from the production in the same countries last year. In Canada there is a decrease of about 21% from the 1932 production, in the European countries so far reported a decrease of 4429 Oats. The 1933 oats crop in 30 foreign countries so far reported amounts to 2,150,982,000 bushels, which is 1% below the production in 1932. Canada shows a decrease of 20.5% and Argentina a decrease of 16.5% from the production of last year. The European Countries, on the other hand,show an increase of about 4%, the North African Countries an increase of 7% and Turkey a 25% increase. Corn. The 1933 corn crop in 18 foreign countries totals 825.194,000 bushels, which is a decrease of about 16% from the production in the same countries last year. There is a decrease ofabout 21% in the corn crop of the European Countries reporting and a 17% decrease in the African Countries. In Turkey, Java and Madura and Manchuria, however, there is a net increase of 15%. Feed Grains. Production in specified countries, 1930-1933: FEED GRAINS PRODUCTION IN SPECIFIED COUNTRIES, 1930-1933. (1,000 BUSHELS). Croji and Countries Reported in 1933. BarleyUnited States Canada Europe, 25 countries North Africa, five countries Asia,four countries Argentina Total, 37 countries 1930. 1931. 1932. 303,752 198,543 302,042 135,160 67,383 80,773 701,664 637,126 725,429 92,125 104,987 107,015 204,936 207,568 184,624 22,124 32,150 14,000 1933. 156,104 63,737 718,835 96,208 187,036 35.365 1,451,637 1,237,731 1,432.033 1,257,285 Estimated world total,excl.Russia & China 1,678,000 1,471,000 1,654,000 United States Canada Europe, 24 countries North Africa, three countries Turkey Argentina 1,276,035 1,126.913 1,246,658 722,485 449,595 348.795 416,034 330,769 1,533,573 1,534,230 1,663,774 1,737,293 12,695 12,139 11.903 20,985 9,660 12.079 10,547 8.806 69,583 58,146 60,983 69,280 3,351,718 3,100.163 3,417.612 2,873,467 Total. 31 countries Estimated world total,excl. Russia & Chin 3,590,000 3,310,000 3,655,000 CornUnited States 2,057,693 2,588.509 2,906,873 2,330,237 5,057 4,658 Canada 5,449 5.826 585,149 611,872 741,279 588,884 Europe, 11 countries 58,904 81,789 80.675 Africa, five countries 76,659 75,462 91,255 Asia,two countries 81,106 87,815 74,891 81,493 75,216 Java and Madura 78,850 Total, 19 countries Estimated world total,excluding Russia. 2,885,283 3,450,650 3.884,237 3,155,431 R 007 Ann a nan nnn A win nun Agricultural Department's Report on Acreage of Winter Wheat and Rye Sown for 1934 Crop. The Crop Reporting Board of the United States Department of Agriculture made public on Dec. 20 its report showing the acreage and condition of winter wheat and rye for the crop of 1934 as follows: Winter Wheat. The acreage of winter wheat seeded in the fall of 1933 for harvest in 1934 is estimated at 41.002,000 acres. This is 4.0% less than the revised estimate of acreage seeded In the fall of 1932 of 42,692,000 acres and 7.2% less than the revised estimate of average acreage seeded (1929-1931) for the crops of 1930 to 1932 of 44,186,000 acres. The reduction in seeded acreage is about one-half the reduction required of farmers in making applications for wheat allotments. The reductions from the base acreage were largest in the States where the proportion of farmers signing wheat applications was largest. In many of the States in which only a small proportion of the farmers applied for wheat allotments, a small reduction or an increase is reported. This estimate relates to winter wheat only and on farms where both winter add spring wheat may be grown, applicants may plan to reduce spring wheat acreage rather than winter wheat acreage. It should also be noted that the farmers' contracts were frequently approved for a smaller acreage than they had already seeded. The excess.acreage seeded will probably be utilized for pasture, cut for hay, or turned under in order that the farmers may comply with the terms of their contracts next spring. The estimates of acreage seeded for the period 1928 to 1933 have been revised in line with data on shipments and other utilization of wheat collected for use in the check-up of farmers' applications for benefits In connection with the wheat reduction campaign. As a result of this check-up the estimates for these years have been revised upward an average of 3.2%. The condition of winter wheat was reported at 74.3% of normal on Dec. 1. This compares with a condition on Dec. 1 1932 of69% and a 10-year average condition of 83.5%. The winter wheat in much of the important territory was seeded under dry soil conditions, and the supply of moisture has not improved materially during the fall. The condition of the crop on Dec. 1 indicates that the abandonment during the winter will probably be heavy. Based upon past relationships, it appears that abandonment of the 1933 seedings will be in the neighborhood of 20%. A comparatively low yield per acre is also indicated by the condition. Past relationships of December condition to yield indicate a crop of winter wheat to be harvested in 1934 of about 435,000,000 bushels for the United States. Rye. The area of rye sown for all purposes in the fall of 1933 is estimated at 5,091,000 acres which is an increase of 14.7% over the 4.439,000 acres sown in the fall of 1932. In the past three years, the acreage of rye harvested for grain has averaged 60% of the total acreage sown. The North Central group of States, which is the principal rye producing section, reports an increase of 18% with Minnesota and Iowa showing an Increase of 50% and South Dakota 35%. The condition of rye on Dec. 1 1933 was reported at 69.9% of normal as compared with the previous low record of 76.3% reported on the corresponding date last year and with the ten-year (1922-1931) average Dec. 1 condition of 85.7%. The low condition this December is due to very unfavorable growing conditions in the Plains States. United States Winter Wheat and Rye Report as of Dec. 1 1933. The Crop Reporting Board of the United States Department of Agriculture makes the following report for the United States, from data furnished by crop correspondents, field statisticians, and co-operating State Boards (or Departments) of Agriculture and Agricultural Colleges: Financial Chronicle 4430 Fall Sowings. Crop and Year of Seeding. Acreage Sown the Precious Fall. Acres. Condition Dec. 1. 102.4 100.6 93.6 100.8 96.0 44,971,C00 45,240,000 42,348,000 42,692,000 41,002,000 83.5 86.0 86.3 79.4 68.9 74.3 97.9 87.3 114.7 5,196,000 5,085,000 4,439,000 5,091.000 85.7 82.9 82.0 76.3 69.9 Winter wheat: 10-year average-1922-1931 1929 1930 1931 1932 1933 Rye (for all purposes): 10-year average-1922-1931 1930 1931 1932 1933 Winter Wheal.-The abandonment of 1932 seedings was 33.4% of the acreage sown: of the 1931 seedings was 16.7%, and the average for the ten years 1920-1929 was 12.4%. Rye.-The estimates for rye relate to the total acreage sown for all purposes. WINTER WHEAT. Condition Dec. 1. Acreage Seeded (1,000 Acres). Autumn ofSlate. 1929. New York New Jersey Pennsylvania Ohlo Indiana Illinois Michigan Wisconsin Minnesota Iowa Missouri South Dakota Nebraska Kansas Delaware Maryland Virginia West Virginia North Carolina South Carolina Georgia Kentucky Tennessee Alabama Arkansas Oklahoma Texas Montana Idaho Wyoming Colorado New Mexico Arizona Utah Nevada Washington Oregon California 1.w ....1 r United States 1930. 1931. 1932. 1933. 270 233 202 194 233 46 46 48 54 49 902 893 898 1,001 935 1,884 1,730 1,592 1,865 1,790 1,687 1,727 1,499 1,622 1.671 1,713 1,850 2,065 1,927 1,601 808 833 698 715 712 36 36 25 34 39 179 188 157 180 182 232 290 257 394 524 1,424 1,605 1,553 1,413 1,554 348 296 251 247 101 3,883 3,504 3,120 2,890 3,034 13,640 13,887 13,097 12,853 11,953 80 81 78 106 96 400 401 488 389 430 561 599 561 615 588 117 126 139 116 106 380 399 435 344 277 82 81 54 77 35 71 51 77 28 78 307 290 209 313 260 282 210 310 256 280 4 6 4 4 2 34 31 19 33 37 4,576 4,615 4,407 4,419 4,198 3,971 4,594 4,543 4,491 4,042 824 772 865 900 692 761 647 701 669 636 189 210 228 202 182 1,742 1,433 1,218 893 938 432 466 453 400 340 47 22 42 24 39 192 189 200 174 204 2 3 1 2 3 1,256 1,366 1,185 1,392 1,114 900 877 864 868 782 667 695 669 736 677 44,971 45,243 42,569 42,692 41,002 Aver. 19221931. 1932. 1933. 88% 86 84 83 83 85 85 87 83 83 83 49 75 64 86 80 72 78 75 74 74 80 74 70 81 75 66 80 72 63 67 60 96 64 90 91 82 79 89% 89 85 85 86 85 87 91 89 00 85 82 85 81 88 83 82 83 84 81 83 87 84 85 83 82 84 82 88 87 80 82 94 87 91 78 86 87 87% 85 85 87 83 83 84 84 79 82 76 70 70 57 88 86 83 87 76 68 74 84 80 76 75 49 56 85 73 67 55 80 80 70 95 86 90 76 83.5 68.9 •74.3 RYE •Acreage Seeded (1,000 Acres). Autumn of- Condition Dec. 1. State. New York New Jersey Pennsylvania Ohio Indiana Illinois Michigan Wisconsin Minnesoth Iowa Missouri North Dakota South Dakota Nebraska Kansas Delaware Maryland Virginia West Virginia North Carolina_ South Carolina_ Georgia Kentucky Tennessee Oklahoma Texas Montana Idaho Wyoming, Colorado Utah Washington Oregon 1930. 1931. 1932. 1933. 48 79 147 140 203 128 191 194 459 68 112 1,418 503 506 67 11 42 156 32 160 24 39 120 110 15 5 80 4 31 66 4 13 21 40 63 146 105 198 1 98 I, 243 ,. 318 .,„ 413 III 75 i 60 1,465 j.546 ,,.,, 404 1 :53 9 35 132 19 152 28 42 96 j 95 22 6 2 67 A 7 30 45 e 1 3 18 52 40 69 149 117 189 93 208 337 388 64 55 952 543 357 48 10 '133 110 24 162 22 43 80 80 14 6 81 7 35 40 3 20 60 64 72 150 119 198 112 1239 364 . 582 , I 96 mg 52 1,047 733 375 48 8 'i 33 99 7'19 157 . 22 I 43 S 76 72 3.14 6 97 9 42 52 3 19 69 Ayer. 19221031. 1932. 1933. 89% 90 86 88 89 90 88 91 88 92 A 88 81 84 A 88 85 91 85 85 84 87 82 86 88 85 83 85 82 89 87 80 84 80 88 89% 87% 86 85 85 1 84 89 83 85 85 86 86 83 84 83 87 79 78 83 87 83 81 68 55 69 49 70 67 74 72 89 84 82 86 72 85 86 78 80 76 70 68 79 77 87' 80 80 75 54 70 66 56 83 78 76 80 72 66 59 67 7() 65 85 86 88 86 United States.... 5,196 4,439 5,091 5,085 85.7 76.3 69.9 •Total acreage of rye sown for all purposes, Including an allowance for spr ng rye. Great Britain Alters Rule for Canadian Wheat-Shipments Via Buffalo and New York, Ordered in Advance, Will Escape Duty. Canadian wheat, shipped via Buffalo and New York, is being admitted to England duty free, according to William C. Mott, Secretary of the North American Grain Export Association. We quote from the New York "Times" of Dec. 22, which further stated: The steamship Ausania, he said, recently arrived in England with a cargo of 8,000 bushels of wheat shipped from Fort William, Canada, via Buffalo and New York which was permitted to unload without paying the 6 cents per bushel duty. For some time Canadian wheat shipments to England Dec. 23 1933 without direct clearance from a Canadian port have had to pay the duty despite the preference agreement. "Shipments will be going right along now," Mr. Mott said. "I expect we will be making some soon. The shipment sent on this occasion for the test was sent from Fort William to Buffalo, thence to this port and on to London. "No really radical alteration was made in the documentary evidence sent with it. One change was made to the effect that a buyer in the United Kingdom must show that he required the wheat and his order must be received at the point of shipment before the wheat is started on t Journey." Loans by Canadian Farm Board Shown as $1,276,114 in Yearly Report-Smallest Annual Operation Since Inauguration of Board. Canadian Press advices from Ottawa, Dec. 4, published in the Montreal "Gazette," said: Loans made by the Canadian Farm Loan Board during the year ended March 31 last amounted to $1,276,114, as compared with $1,996,344 the previous year, according to the annual report of Commissioner J. D. MacLean to Hon. E. N. Rhodes, Minister of Finance. It was the smallest year's operation since the Board was inaugurated In 1929. Applications totaled 1,776 as compared with 4,803 the previous year, and applications granted numbered 536 as compared with 1,049 in 1931-32. Since the inception of the scheme 16,778 applications for loans have been received and 4,830 approved as on March 31 1933. The total loans outstanding on that date amounted to $9,420,000, distributed as follows: Nova Scotia, $207,000; New Brunswick, $631,000; Quebec, $2,892,000; Manitoba, $788,000; Alberta, $3,444,000, and British Columbia, $1,366,000. The loan scheme, while national in scope, operates only in the six Provinces. When it was inaugurated the Provinces of Ontario and Saskatchewan were already operating similar schemes through the Provincial Governments. The Board grants loans only to bona fide farmers and limits the amount to 50% of the appraised land value and 20% of the value of buildings. The / 2%; up to the present, the average loan has been $2,186. interest rate is 61 Administration costs amounted to $112,000 during the last fiscal year, a slight reduction from the previous year, although the amount of business in force had increased. Collections during the year reflected the prevailing low prices for farm products and amounted to $141,574,000 in principal and 8353,080 interest. Interest arrears outstanding for a longer period than six months amounted to $87,000. During the fiscal year the Board acquired 27 farm properties by foreclosure and 24 were undisposed of at the end of the year. Seizures are made, the report states, only when it has become apparent that the farmer cannot, even under improved conditions, extricate himself from his financial difficulties. Fourth of Estimated Pacific Wheat Export Sales Completed. More than a fourth of the estimated 30,000,000 bushels of wheat export sales from the Pacific Northwest that were anticipated this season have been made, Frank A. Theis, chief of the wheat section of the Processing and Marketing Division of the Agricultural Adjustment Administration, stated on Dec. 12. The announcement continued: Mr. Theis reported that export sales of 8,007,000 bushels of wheat and wheat in the form of flour have been concluded through the North Pacific Emergency Export Association. This agency was formed under the marketing agreement concluded by the AAA in order to maintain prices to farmprs in Washington, Oregon and Northern Idaho by relieving the acute surplus of wheat there, and to relieve the pressure of the surplus in Southeastern markets. Approximately 8,750,000 bushels have been purchased for export. The export sales have been made to many countries. Wheat and flour has been sold for export to China, Japan, Manchuria, the Philippines, Hawaii, Scotland, England, Belgium, New Zealand, Holland, Norway, Sumatra, IndoChina, Federated Malay States, Dutch East Indies and a number of Central and South American destinations. About a sixth of the exports to date have been in the form of flour, Mr. Theis said. It is expected that the flour exports will increase in volume until they approach approximately a third of the total exports of the Association. Flour exports to China were threatened recently when Chinese dispatches announced that country's intention of placing a heavy tariff on flour imports in order to protect the Chinese milling industry. Representations opposing such barriers to American flour exports were made and no decision on the imposition of the proposed tariff has been announced. Purchases of wheat for export have prevented prices to farmers In the Pacific Northwest from being forced out of line with prices of wheat at interior points, Mr. Theis said. Wheat was bought yesterday at 75%c. a bushel, No. 1 soft white wheat, basis delivered Portland. This is about 10c. under the December future at Chicago, and is considered to hold normal relationship to Chicago prices. At the time the marketing agreement was first considered the spread was 26e. a bushel, and this condition made necessary some sort of relief for the acute surplus in the Northwest. The wheat is sold at the world price, and difference between the domestic price and the lower world price is paid to exporters by the export association. These payments, which now amount to about 22c. a bushel, are financed from a fund made up of 2e. of the 30c. a bushel processing tax being levied on wheat processing. A substantial part of the exports have been carried in American ships. While the marketing agreement provides machinery for relieving the immediate surplus in the Pacific Northwest, steps to avoid a recurrence of the situation have been taken through participation of farmers in the wheat acreage reduction campaign which included, Washington, Oregon and Northern Idaho, the region in which the marketing agreement is operative. An item regarding the Pacific wheat exports appeared In our issue of Nov.4, page 3211. Agrentine Crop-Reported Highest Since 1928-29. Under date of Dec. 14, Associated Press advices from Buenos Aires stated: Wheat The first official forecast to-day of the 1933-34 wheat crop indicated the highest one since 1928-29, and under only two crops in the last decade. Volume 137 Financial Chronicle Chile Drops Restriction on Exportation of Wheat10,000 Tons to Be Shipped to Peru as Crop Shows Surplus. United Press advices from Santiago, Chile, Dec. 16, were published as follows in the New York "Herald Tribune": Congress this week removed restrictions on the exportation of Chilean wheat, and the farmers of this country hope to find a market for their surplus crop in Peru. Despite the world-wide overproduction of wheat, Chile, in recent years, passed through two periods when it was necessary to import the grain from Argentina in order to avoid a famine. The Chilean Government felt the sacrifice in drawing upon the gold reserves of the Central Bank to pay for the wheat. Chilean wheat farmers this year increased their acreage by 21% after the country's supply of wheat last year sank so low that compulsory mixing of other types of flour with white flour for bread was adopted. The Agricultural Export Board already has authorized the exportation of 10,000 tons of wheat to Peru, and the Government hopes to sell that country 60,000 tons annually as a result of favorable concessions granted in the recently signed commercial treaty between the two countries. Germany2Reported Striving for a Self-Sufficient Agriculture. 014.7.1EJE:isssifligise0 The tendency of German agriculture to shift and expand production of certain food and feedstuffs toward a more selfsufficient basis is clearly shown in the 1933 agricultural census in that country, says the Bureau of Agricultural Economics, under date of Dec. 14, its announcement continuing: In the last 20 years there have been marked increases in acreages of wheat, fodder beets and other field vegetables, pasture land and gardens, whereas there have been large decreases in acreages of rye, spelt, oats, sugar beets, rape seed, hops, flax, and fallow land. The total agricultural area in Germany in 1933 is placed at 72,561,000 acres, which is about the same as that of 1913 within the present boundaries of Germany, but is a decrease of nearly 16% from the old 1913 German boundaries. But even when these pre-war boundaries are considered, says the Bureau, the 1933 acreages of wheat, fodder beets, vegetables, both field and garden, pastures, orchards, and gardens were larger than in 1913. The designated agricultural area constitutes nearly two-thirds of the total land area of Germany, with forests and woods making up most of the remaining area. Of the total agricultural area in Germany in 1933, bread grains accounted for 23%, or more than for any other crop; of this, rye made up 15% and wheat about 8%. IncreaselForecast in Output of Beet Sugar in Germany. That German production of sugar during the coming year will be notably in excess of the current year's output is revealed in a report from Vice-Consul Paul J. Reveley, Leipzig. As made public by the United States Commerce Department, on Dec. 9, the report noted: Reports from 209 factories in Germany manufacturing sugar from sugar beets indicate that production in the 1933-34 season will probably aggregate 1,303,000 metric tons of raw sugar. This figure compares with 1,088,000 tons produced in the 1932-33 season. From the estimated production in the approaching season, 12,600 metric tons will be used for the manufacture of denatured sugar, compared with 34,850 tons used for this purpose in the year 1932-33. The remainder, about 1,290,000 metric tons of raw sugar, will be available from the 1933 crop for human consumption, either in the form of refined or raw sugar. This amount of raw sugar, if all refined, would yield 1,161,000 metric tons of consumption sugar. Reports from sugar factories indicate that 7,877,000 tons of beets will be worked in the coming season compared with 6,769,000 tons in the 1932-33 period, an increase of more than 16%. It is expected that the German beet crop will yield this year 16.09% sugar compared with 15.65% last season. Italy's Current Wheat Crop Said to Indicate Goal of Self-Sufficiency Has Been Reached. Italy's organized effort to attain self-sufficiency in wheat production has met with success, according to a report to the Commerce Department from Trade Commissioner Elizabeth Humes, Rome. The Department, on Dec. 12,further said: The current year's yield of 8,100,000 tons represents the largest recorded In the history of Italian agriculture, the report states. It compares with a yeatly average of 4,927,200 tens during the six pre-war years, 1909-1914, with a yearly average of 5,128,000 tons during the six years preceding (19201925), and with a yearly average of 6,580,158 tons for the past six years. The nearest approach to this year's wheat harvest was last year's heavy crop of over 7% million tons. The present development, it is pointed out, is due to improved yields, rather than to increased acreage planted to wheat. Italian farmers are being urged not to increase wheat acreage further, but rather to keep up their efforts to attain increasing per acre yields, and at the same time turn their attention to the improvement of livestock and forage crops. Having attained the goal of raising the complete wheat needs within the national borders, the attention of the Italian Government is now directed towards maintaining the level of wheat prices on the domestic market. A number of measures to accomplish this purpose are already in force, including milling regulations, making the use of 99% domestic wheat obligatory, and special credit facilities to farmers for wheat stored collectively. Import Duties on Wheat and Other Grains Imposed in China—Increased on Wheat Flour. It was announced by the Department of Commerce at Washington, on Dec. 15, that effective Dec. 16 the Chinese Government will collect an import duty on wheat, rise, paddy, barley, buckwheat, maize, millet, oats, rye, and grains not 4431 otherwise specified in the tariff, both cargo in bond and newly arrived, all of which are now duty free, and will increase the present import duty on wheat flour, according to a radiogram received in the Department from Commercial Attache Julean Arnold, Shanghai. It is further announced: The following are the new import duties imposed, in customs gold units per picul: Wheat, 0.30; wheat flour, 0.75 (formerly 0.25); rice, 1.00; paddy, 0.50; barley, buckwheat, maize, millet, oats, rye, and grains not otherwise specified in the tariff, 10% ad valorem. (It is presumed the above import duties will be subject to the customs surtaxes totaling one-tenth of the duty. The customs gold unit at present exchange equals approximately United States $0.62; (the picul equals 133 1/3 pounds.) Free Trade in Food Allowed in Russia—GrainiCollections Completed Before Dec. 31 for thelFirsthTime in Soviet History—Big Export SurplusiSeen.1.1 Under date of Dec. 16, Walter Duranty, Moscow correspondent of the New York "Times," reported to that paper as follows: its State For the first time in its history, the Soviet Union has completed14, which grain "collections" before the end of the year—specifically, by Dec. is two and a half months earlier than ever before. Crimea Actually, 96% of the collections had been made Nov. 1, and the by Sept. 1. performed the unprecedented feat of completing its deliveries periods, ran During August and September, deliveries, reckoned in 10-day from three to five times higher than in the same period of last year. Large Export Surplus Seen. The total of the collections is not stated in to-day's news, but the writer was informed last September in Kharbov by the chief of the Ukrainian political section of the machine-tractor stations that it would be about 24,500,000 metric tons. As the needs of the urban population, construction camps and army are abundantly met by 17,500,000 tons, there will be available 7,000,000 tons for reserve or export. In the latter respect it is noteworthy that the proportion of wheat in this year's collections is half as large again as that of last year. This result fully justifies the optimism expressed to the writer by local authorities during his September trip through the Ukraine and North Caucasus—optimism that contrasted so strikingly with the famine stories then current in Berlin, Riga, Vienna and other places, where elements hostile to the Soviet Union were making an eleventh-hour attempt to avert American recognition by picturing the Soviet Union as a land of ruin and despair. Secondly, it is a triumph for Joseph Stalin's bold solution a year ago of the collective farm management problem—namely, the establishment of political sections in the tractor stations, a step that future historians cannot fail to regard as one of the major political moves in the Soviet Union's second decade. The writer understands that autumn sowing has slightly surpassed the program and the plentiful snow of this early winter augurs well for the future. New Courage Is Seen. This year's special preparation of tested seed for spring sowing, although slightly behind the program, will undoubtedly be completed by the middle of February, and it can be stated confidently that the "socialized sector" of agriculture—the State and collective farms—which this year furnished 90% of the grain deliveries to the State, will approach the spring sowing with a new spirit of courage and energy under the guidance of the political sections of the tractor stations. It is significant that the peasant population that fled from grain-producing areas, which suffered last winter from a labor shortage, has flowed back to the villages. The peasant beggars who were a deplorable feature of life 12 months ago in Moscow, Kharkov and Rostov-on-Don, to name only three great cities, have now wholly disappeared. A further factor of great importance is that "free trade" in foodstuffs henceforth will be permitted for the entire country, which must not be considered a new "New Economic Policy" but is undoubtedly a big advance towards the goal, announced by M. Stalin, of "making every collective Bolshevik and every collectivist prosperous." It is difficult accurately to estimate what percentage of the total crop the grain collections form, as conditions vary in different regions. It probably is between 20 and 25%, which would put the cereal crop at the record figure of 100,000,000 metric tons. $9,216,264 Paid to Farmers Up to Dec. 15 for Participation in Wheat Adjustment Program-125,724 Checks Mailed by AAA. Wheat adjustment payments-made by the Agricultural Adjustment Administration during the week from Dec. 9 to Dec. 15 amounted to more than all the previous wheat payments made by the Administration. Payments during the period totaled $4,827,830 in checks to 48,703 wheat farmer,. ...These payments brought the grand total of Rayments to date up to $9,216,264 and the total number of sent tofarmers checks to 125,724. The checks have 17495 _ _counties-in 22 States. We further quote as follows . — from an announcement issued on Dec. 16 by Fewer than 500 of the 1,450-counties participating in the wheat Program remain to be approved for payment, the wheat section announced to-day. The county acceptance unit has approved 955 counties for payment. The counties approved, but not paid, will be paid as soon as the Contracts are examined in detail. During the last few days payments to farmers in Texas, Oklahoma and Oregon were begun. Most of the contracts yet to be approved will come from North Dakota, Montana, Idaho and Washington, wheat section officials say. The wheat campaign was later in this region than in other sections. Payments made to States to date, including those announced previous to this week, are: Colorado, $7,176; Illinois, $270,065; Indiana, $749,964: Iowa, $135,572; Kansas, 84.935,488; Kentucky, $32.885; Maryland, $442,472; Michigan, $128,821; Minnesota, 6207,000; Missouri, $496,442; Nebraska, $278.813; Nevada, $15,985; New York, $6,557; North Carolina, $8,101; Ohio, $72.3,781; Oklahoma, $86,026; Oregon. $2,751; Pennsylvania 4432 Financial Chronicle $369; South Dakota, $42,100; Texas, $253,613; Utah, $80,330; Virginia, $283,267; West Virginia, $28.889. Peanut Millers Marketing Agreement Tentatively Approved. A marketing agreement proposed by the peanut milling industry was tentatively approved Dee. 16 by Acting Secretary of Agriculture C. W. Marvin. After its signature by the contracting parties, it will be returned for final consideration by the Agricultural Adjustment Administration. The Administration on Dec. 16 further announced: kg The proponents of the agreement represent about 75% of the milling volume in the Virginia-Carolina area and the Southeast and 100% of the volume in the Southwest. The agreement includes a minimum price per ton to growers which is $5 Per ton above the schedule considered in the first draft of the agreement. The prices are set on the basis of U. S. grades, as follows: Southeast and Southwest Spanish and Virginia Spanish, U. S. No. 1 stock, $65 per ton; Southeast Runners, U. S. No. 1, $55 per ton; Virginias shelling stock. U. S. No. 3 basis, $60 per ton. These prices may be changed at any time with the approval of the Secretary. The agreement sets up for the industry a control board with equal representation of growers and millers from the various areas. Their supervising activity and regular reports are under the regulation of the Secretary. One of the special requirements in the agreement is that the control board must investigate the possibility of a plan for production control in 1934 and report to the Secretary before Feb. 1 1934. Dec. 23 1933 destruction by burning,so any deal with Russia will be so much clear gain. Mr. Aranha said negotiations will start soon for an agreementfor Russian recognition in which, as with the United States, the Soviet Union would agree to conduct no propaganda campaign here. Communist activities have never made much headway in Brazii. 131 The first steps toward Russo-Brazilian trade relations were taken at the London Economic Conference when Brazilian delegates conversed with Maxim Litvinoff, who suggested that Russia might take some Brazilian coffee if given 18 months in which to pay. The negotiations got no further, but the Brazilian Government is favorable to the proposal. Never a big coffee market because of its national tea-drinking habit, Russia under the Czars nevertheless used to buy several hundred thousand sacks a year. Now Brazil hopes to start with a 200,000-sack transaction and make way for other products ;11 which the specializes. If a commercial deal is made Brazil will insist that Russia re-export no coffee. , Heavy Rains Damage Colombia's Coffee Crop—Current Crop Estimated 10 to 15% Lower Than Last Year. Colombia's important coffee crop has suffered serious damage as a result of unusually heavy rains, according to reports received in the U. S. Department of Commerce from its office in Bogota. An announcement issued by the Department on Dec. 14 noted that: "It is estimated in local coffee circles that the current crop will be from 10 to 15% under that of last year." Continuing, the announcement said: The excessive and con.inued storms, the report shows, have not only Burley Tobacco Markets Closed in Six States in Drive held up the harvesting of the crop, but they may also result in delaying for Higher Prices—Kentucky, Virginia, Tennessee, export shipments of coffee because o/ the fact that it has been inmost imOhio, West Virginia and Indiana Join "Holiday" possible to dry the coffee beans. Colombia is the world's second largest producer of coffee and ranks first Move—AAA Speeds Production Cut Program. the production of mild types. Coffee accounts for so% of the country's Six States acted this week to close the markets for burley in total exports, and upon it the economic status of Colombia largely depends. tobacco, pending action by the Federal Government for the In 1932 exports of Colombian coffee were valued at $40,800,000. Between control of tobacco production. They were Kentucky, Ten- 85 and 90% of these exports are destined to the United States. nessee, Virginia, Ohio, West Virginia and Indiana. Governor Laffoon of Kentucky issued a "holiday" proclamation Decrease of Over 100,000 Bags Noted in Raw Sugar Stocks in New York Warehouses from Dec. 7 to 15. on Dec. 16, asking that sales be suspended until the Federal Raw sugar stocks in licensed warehouses in New York Government had time to,put into effect its tobacco program. decreased over 100,000 bags from Dec. 7 to Dec. 15, accordwere proclamations issued on Dec. 17 by Governor Similar ing to the New York Coffee & Sugar Exchange, which, McAlister of Tennessee and on Dec. 18 by Governor Pollard under date of Dec. 15, said: of Virginia. Markets in the other States mentioned were This decrease is in line with the recent drop of 11 points in spot sugar generally closed voluntarily without an official proclama- to the current 3.19 duty paid price. Refiners elected to buy sugars here tion. The New York "Times" of Dec. 18 outlined the ob- because of their inability to secure prompt supplies from producing countries. Stocks on Dec. 15 were 515,547 bags against 616,181 bags on Dec. 7: jectives of the "holiday" as follows: 630,174 bags a month ago and 261,320 bags on Dec. 15. last year. Only The "holiday" movement for burley tobacco seeks to halt marketing until growers have signed up for the Government's acreage reduction program. This seeks to limit the 1934 burley crop to about 250,000,000 pounds and to improve prices to producers. Under this plan, growers would agree to reduce their acreage either 33 1/3 or 50%, and in return would receive $15,000,000 from the Government. About $3,000,000 of this would represent rental for acreage taken out of production, while the remainder would be distributed later as adjustment payments based. on the sales value of the growers' 1933 crop. The progress of the 'holiday" in Kentucky was noted in Associated Press advices from Lexington on Dec. 18 as follows: Belief that signed agreements for reduction next year would boost this season's prices was expressed by growers generally, and at a meeting Saturday afternoon in Frankfort growers told Governor Laffoon that unless he took steps to close the markets "night riding" and other disorders of years past might break out. Prices this season at Lexington, the world's largest burley market, averaged $12.46 for the 6,479,210 pounds sold the first week, and at other Kentucky markets upwards of 3,000,000 pounds had been sold at averages ranging from $9.82 to $12.20. Last year 239,938,067 pounds of burley were sold in Kentucky for $28,945,271, an average of $12.06. The selling holiday was requested until Government reduction agreements could be signed, and a call for a mass meeting at Frankfort Wednesday to take steps to raise prices was sent out by a meeting of growers in Lexington. Opening of the dark-fired markets in Kentucky already had been postponed, pending clarification of the price situation, and to-day the Hopkinsville dark-fired tobacco sales committee announced the market there would open Jan. 2. Meanwhile, Washington took no official notice of the holiday, but the Agricultural Adjustment Administration went ahead with the work of applying the Farm Adjustment Act to burley. The campaign for signing up growers to reduce their acreage one-third to one-half was going forward rapidly, and more than 100,000 contracts were being sent to Kentucky burley growers to-day by the College of Agriculture of the University of Kentucky. Brazil 'Considers Recognition of Russia to Aid Coffee Trade-0. Aranha, Government Leader in Assembly, Favors Following Example of United States in Hope of Opening New Market for Disposal of Surplus Crop. Associated Press advices from Rio de Janeiro, Dec. 16, to the New York "Herald Tribune" of Dee. 17 said: rt In the wake of United States recognition of Russia, Brazil, with coffee In mind, is preparing to follow suit. Brazil's political coolness toward Russia was dispelled when the United States re-established reiadons with Moscow. Almost immediately Oswaldo Aranha, Minister of Finance and leader of the Government's majority in the constituent Assembly, declared that Brazil ought also to recognize Russia and try to break ince) the Soviet market. With a coffee surplus of 10,000.000 sacks, Brazil can spare as much as the Russians will drink, on easy terms. Much of the surplus is headed for 2,642 tons of raw sugars arrived at Atlantic ports during the past week. Distribution of United States Beet Sugar During November Reported 5,434 Long Tons Above Last Year. United States beet sugar distribution for the month of November.1933, amounted to 89,278 long tons, raw sugar value, according to a report received by B. W. Dyer & Co., sugar economists and brokers, from the Domestic Sugar Bureau. The firm announced on Dec. 16 that this is an increase of 5,434 tons compared with November 1932. Distribution for the first 11 months of 1933 amounted to 1,141,854 tons, an increase of 2,342 tons compared with the corresponding period of last year, the Dyer firm said. Consumption and Production of Sugar by 11 European Countries During First Two Months of 1933-34 Crop Above Year Ago—Stocks on Nov. 1 Lower. According to a report issued issued Dec. 15 by B. W. Dyer dz Co., sugar economists and brokers, statistics of 11 European countries for the first two months of the 1933-34 crop show the following results: (1) Consumption is higher by 62,322 long tons, or 5.5% compared with the same period for the previous year. (2) Production Is ahead of last year by 268.810 tons, an increase of 18.1%. (3) Stocks on Nov. 1 1933 were 196,574 tons less than stocks on Nov. 1 1932, or a decrease of 7.5%. Increase of 22.1% During November Over November 1932 Noted in Raw Sugar Shipments from Philippines to United States. Shipments of raw sugar to the United States from the Philippines during November were 88,518 long tons, an increase of 22.1% over last year, the New York Coffee & Sugar Exchange announced on Dec. 18. Refined shipments were 7,234 tons, an increase of 70.9%, according to cables to the Exchange. Last year's shipments of raws totaled 72,520 tons, while refined shipments amounted to 4,235 tons. Of the totals 92.4% was shipped to Atlantic ports this year compared with 94.5% last year, the Exchange said. Puerto Rican Sugar Crop of 1932-33 Reported All Sold— Amounted to 826,926 Short Tons-769,044 Tons Sent to United States. The total Puerto Rican crop of 1932-33 amounting to 826,926 short tons has been sold and there will be no carry- Volume 137 4433 Financial Chronicle over on that Island on Jan. 1 1934, according to advices received by the New York Coffee & Sugar Exchange. In announcing this on Dec. 18 the Exchange said: 769,044 tons or 93% of the total came to the United States; 658.062 tons in a raw state and 110,982 tons of refined figured at raw value. Home consumption of 57,882 tons accounted for the balance. The carryover on Jan. 1 1933, was estimated at 30,000 tons which sugar has been sold in addition to the entire 1933 crop. average number of active spindle hours per spindle in place for the month was 220. The total number of cotton spinning spindles in place, the number active, the number of active spindle hours and the average hours per spindle in place, by States, are shown in the following statement: Spinning Spindles. Active Spindle Hours for November. Stale. Speeding-Up of Payment of Corn and Hog Reduction Checks Planned by AAA. A plan to reduce by several weeks the time required for arranging payment of the first corn and hog reduction checks is announced by Dr. A. G. Black,chief of the corn-hog section of the Agricultural Adjustment Administration. A statement issued Dec. 15 by the Administration said that under this plan the method of handling the contract will be simplified by means of a "rider" sheet which may be substituted for two of the regular contract sections. The contracting producer will sign the "rider" under which he agrees in advance to accept any corrections and adjustments in his production figures as may be found necessary by the Community Committee and the County Allotment Committee. We further quote as follows from the announcement: In Place Nov. 30. Active DarMg November Total. Average per Spindle in Place. 30,881,964 25,423,348 6,796,420,109 220 Cotton growing States 19,160,680 New England States.. 10,689,448 All other States 1,031,836 17,418,032 7,296,192 709,124 5,027.502,369 1,609.083,442 159,834,298 262 151 155 1,646,396 744,776 2,993.544 806,946 3,823,438 167,176 804,362 287,370 5,496,872 1,018,686 5,595,070 506,846 228,400 613.002 690,664 489,856,636 158,279,025 838,632,498 172,680,431 831.402.000 49,594,636 188,394,070 63,291,945 1,414,841,433 240.943,596 1,795,005,578 159,078,080 58,705,206 169,663.466 166,051,509 257 166 254 174 144 227 169 115 230 138 313 248 216 260 185 United States Alabama Connecticut Georgia Maine Massachusetts Mississippi New Hampshire New York North Carolina Rhode Island South Carolina Tennessee Texas Virginia All other States 1,908,204 955,032 3,295,996 992,652 5,761,836 218,872 1,117,792 548,624 6,139,234 1,744,872 5,735,440 640.384 272,014 652,316 898,696 In other words, the contracting producer authorizes the Allotment Committee to make adjustments in his figures without submitting the contract to him for a second signature of approval and acceptance, as is necessary in the case of contracts handled in the usual manner. After the County Allotment Committee, in collaboration with the State Statistician, has made the preliminary adjustments and corrections, signed contracts carrying the "rider" can be forwarded at once to the Secretary of Agriculture for acceptance. First corn and hog reduction payments to the producer who signed the "rider" can then be made promptly. Later, the Community Committees and the County Allotment Committee will make a final check of all producers' figures against available statistics of the United States Department of Agriculture. If it is necessary to bring the aggregate report for the county into line with Federal statistics on corn acreage and hog production, a final adjustment will be made, pro rata, among all producers' figures. If payment under contracts carrying "riders," made on the basis of preliminary adjusted figures, are out of line with the final adjusted figures, later payments can be reduced accordingly. Cotton Campaign to Sign 1934-35 Adjustment Contracts Scheduled to Open on Jan. 1—Farmers Will Be Asked to Restrict 1934 Planting to 25,000.000 Acres. The campaign to sign the 1934-35 cotton adjustment contracts will begin Jan. 1 1934 it was announced Dec. 16 by Chester C. Davis, Administrator of the Agricultural Adjustment Act. After a conference on Dec. 16 with Cully A. Cobb, Chief of the cotton production section of the AAA,Mr. Davis stated that he would join with the Secretary of Agriculture in requesting the Governors of the 16 cottonproducing States to issue proclamations designating the first week of the New Year for all agencies in the South to join in an intensive effort to obtain farmers' signatures to proThe announcement quoted Mr. Black as further saying: duction adjustment contracts that will restrict 1934 cotton The main thing about this plan is that it permits payment at an earlier planting to 25,000,000 acres. date than could otherwise be arranged. It is recognized that in spite of every effort to hurry the procedure, a complete and thorough check-up may "We are prepared to begin the campaign in the South," take as much as several months. Therefore, the Administration proposes to Mr. Cobb stated. "Every State in the cotton belt has an make first payments to producers who sign the "rider" on the basis of a ample supply of contracts and each of the Directors of careful preliminary check-up of their individual records and to let the final check-up carry over for awhile. Extension advises me that the State organizations are ready The individual producer can take his choice as to how he wants his conto begin signing contracts on Jan. 1." The AAA announced tract handled. All contracts, regardless of how handled, will be subject to that Mr. Cobb left for Stillwater, Okla., Little Rook, Ark., careful check and adjustment by the County Allotment Committee, but payment on those handled without the "rider" cannot be made until after a and Tucson, Ariz., on Dec. 16, to confer with agricultural complete check-up. leaders of the Southwest and Far West before the campaign. Similar conferences have been held or will be held at other Efforts of Canadian Brewing Interest to Stimulate points throughout the South where Oscar Johnston, Director Malting Barley Production in Quebec Continue. of Finance of the AAA;D. W. Watkins, consulting specialist Farmers in the Province of Quebec are finding in malting of the cotton section, and C. A. Alvord, assistant to Mr. barley an assured source of income, according to a report Cobb, are meeting growers and extension forces. The AAA from Vice-Consul G. B. Lane, Montreal, made public Dec. further announced: 15 by the U. S. Commerce Department. The report states: Instructions to field workers and a manual of administrative rulings In 1931. Canadian brewing interests offered to purchase from Quebec farmers a maximum of 500,000 bushels of malting barley Per year. In that year this grain was grown for the first time in Quebec and 2,000 bushels were sold. The same offer was renewed in 1932, in which year 40,000 bushels were reported as having been sold. During the first 10 months of the current year, it is estimated that approximately 50.000 bushels have been sold to the breweries under terms similar to those offered in the two previous Years. According to reports, the largest brewing concern in Canada, together with other brewing interests, has offered to buy annually a maximum of a million bushels of malting barley7grown by Quebec farmers. fr. In view of the efforteof brewing interests to encourage Quebec farmers to increase their production of malting barley, it is expected that production will continue to increase. The size of the annual crops to date, however, has been so small as compared with the amount the breweries are willing to purchase that it is not thought that the desired total proddction can be even approached for an indefinite period. Activity inIthe-Cotton Spinning Industry for November 1933. The Bureau of the Census announced on Dee. 21 that, according to preliminary figures, 30,881,964 cotton spinning spindles were in place in the United States on Nov. 30 1933, of which 25,423,348 were operated at some time during the month, compared with 25,875,142 for October, 26,002,148 for September, 25,884,704 for August, 26,085,300 for July, 25,549,974 for June and 24,368,478 for November 1932. The cotton code limits the hours of employment and of productive machinery. However, in order that the statistics may be comparable with those for earlier months and years the same method of computing the percentage of activity has been used. Computed on this basis the cotton spindles in the United States were operated during November 1933 at 96.3% capacity. This percentage compares with 101.9 for October, 99.61for September, 106.7 for August, 117.5 for July, 128.9 for June and 96.8 for November 1932. The containing detailed information on the program will be distributed next week Approximately $125,000,000 will be paid to cotton producers of the South next year under the 1934 adjustment program. Producers willl be offered a rental payment based upon the productivity of the land they agree to withhold from production, and a parity payment of not less than one cent per pound on their farm allotment. The rate of rental payment for each acre rented to the Secretary of Agriculture will be 33i cents per pound on the average yield of lint cotton per acre for the farm in the years 1928-32,inclusive, with a maximum rental of $18 per acre provided in the contract. The rental payment will be made in two equal instalments,the first to be paid between Mar. 1 and Apr.30 1934, and the second between Aug. 1 and Sept. 30 1934. The parity payment of not less than one cent per pound upon the "farm allotment" will be made between Dec. 1 1934 and Jan. 1 1935. The "farm allotment" is defined in the contract as "40% of that figure expressed in pounds which results from multiplying the annual average number of acres planted in cotton on this farm during the years 1928-32 inclusive, by the average yield (expressed in pounds) per acre during said years." In announcing the opening of the campaign, Mr. Davis said: Cotton farmers of the South who will be asked to sign these new contracts are, I believe, throughly familiar with the economic facts that make it necessary to continue the adjustment of cotton production. In spite of plowing up more than 10.000,000 acres last summer, there is still a surplus of cotton. This program is directed to the elimination of this surplus. If all cotton farmers participate and actually restrict planting next year to 25,000,000 acres, there is a definite prospect of a more nearly balanced cotton situation at the beginning of the crop year next Aug. 1. I am advised of a vast improvement in conditions in the South as compared with those of last year. We know that the cotton program of this past summer was one of the major contributing factors to this improvement. The South has already experienced to a considerable degree the beneficial results of a production control program and we in Washington recognize that the first major attempt of the AAA was successful because of the Immediate and intelligent co-operation of the cotton farmers of the South. The AAA is confident that the same spirit will characterize this second step in the adjustment of cotton production. Mr. Cobb stated that the organization in the South, under the direction of the extension forces, would be developed around the 22,000 volunteerIworkers who participated in 4434 Financial Chronicle the emergency adjustment campaign of 1933. Local committeemen who served in that campaign and who axe eligible to sign one of the new contracts will be asked to become charter members of the County Production Control Associations to be organized in each of the more than 800 cotton producing counties to administer the program. According to the AAA, Mr. Cobb urged that cotton farmers compile in advance the information necessary in filling out a contract. He listed the following items: (1) Number of bales of cotton produced on farm for each year of the base period, 1928-32, inclusive. (2) Average weight of lint per bale for each year of the base period. (3) Total lint produced in each base-period year. (4) Acreage planted to cotton in each base-period year. (5) Number of pounds of lint per acre produced in each base-period year. In addition to the above information as the basis for determining the acreage planted to cotton during the base period, the farm allotment and the amount of payments under the contract, producers will be asked to give their cotton production for 1933, and crop acreages for 1932 and 1933. The AAA quoted Mr. Cobb as stating: "It will be exceedingly helpful," Mr. Cobb stated, "if every cotton farmer who plans to sign a contract would begin to compile these data. In computing the production of cotton on the farm for the past five years, there are certain obvious difficulties. Yet I believe every farmer knows more or less exactly how much cotton was produced on his farm during the past five years. A farmer who has not kept records may have his gin slips or other data that will be evidence of production. This information will facilitate singing the contract." Mr. Cobb also called attention to a clause in the contract which permits the county committee to correct, if necessary, the producers' acreage and production figures. He added: lk "We have in Washington the recorded averages, by counties, of cotton production for the past five years. These averages include acreage as well as yield. Cotton farmers understand that. as was the case in the last campaign, no farmer can miscalculate his production base without taking away something from his neighbor," Mr. Cobb stated. "And for that reason, the county committee is authorized under the contract to adjust figures on a pro rata basis among all contracting producers in a given county should aggregate figures on acreage and production, as given by the producers, be too far out of line with the recorded averages." "We are not anticipating, of course, that there will be any difficulty along this line. On the whole the estimates made in the past campaign were entirely in line with the recorded averages and were later justified by the Government reports. Yet as we are preparing to begin this campaign, I want to call this phase of the contract to the attention of the producer and urge again that every farmer exercise the utmost care in making out his acreage and production figures." Petroleum and Its Products—Decision on Stabilization Pact by Ickes Waits as Independents' Protests Rise—Administrator Orders Survey of Crude Oil Cost—January Allowable Slashed by Government— Production of "Hot Oil" in Texas Seen Threat to Price Stability—Nation's Oil Output Up Sharply. Up to a late hour last night (Friday) Secretary Ickes had not made public his decision on the proposed stabilization program for the oil industry with opposition of independent factors in the industry gaining considerable momentum during the week. Additional protests from independent distributors and oil men throughout the nation were received by the Oil Adminis.tration and it is believed that part of the delay in announcing Secretary Ickes' decision is due to the serious attention being paid to these protests by Federal oil authorities. Senator Borah, who lifted his voice in protest against the proposed agreement last week, characterizing it as affording "a monopoly in the industry to the major companies," filed six specific protests against the pact in a letter sent to Secretary Ickes early in the week. Expressing fear for the smaller units in the industry, Senator Borah reiterated his belief that the agreement would open the way to eventual control of the petroleum industry by the major units. After a thorough study of the proposed agreement, Senator Borah wrote Mr. Ickes, he is of the belief that: "First, it would enable the major companies to control the petroleum industry. "Second. they would have the power under the proposal to fix the price of crude oil, gasoline, or fuel oils. "Third, they could punish anyone not submitting to these prices by cutting off all supplies. "Fourth, it would be within their power to wipe out independent oil companies. "Fifth, it would be within their power to raise the price to consumers to any extent which they might think the traffic could boar. "Sixth, I do not find nor see any reviewing power upon the part of any public official or impartial and disintered tribunal." Secretary Ickes issued an order Tuesday calling for an immediate survey of the cost of crude oil production to obtain the necessary data for administration of the code. The survey will be conducted by the Petroleum Administrative Board. At the same time, the oil administrator issued production allowable figures for the first quarter of 1934, which set Dec. 23 1933 the daily allowable at 2,183,000 barrels, a cut of 27,000 barrels daily from current allocations. This order also provided that inventories of gasoline at the close of January 1934, should total 51,500,000 barrels, an increase of 500,000 barrels above the level set for Dec. 31 1933. Information on which the Petroleum Administrative Board is to make its survey of the cost of producing crude oil will be based on reports from producers of 5,000 barrels daily east of the Mississippi and in Colorado, Montana and Wyoming, and from producers of 10,000 barrels daily in other states. Answer was made on the same day to criticism of the proposed stabilization agreement by members of Congress in a statement from Harold B. Fell, executive vice-president of the Independent Petroleum Association. "The protection given independents in the petroleum industry against price cutting raids by larger companies which might put them entirely out of business may be jeopardized by attacks made on the proposed pooling and marketing agreements by members of Congress, either misinformed of the true facts of the case or misled by those opposed to any stabilization program for this vital industry," he said. "No substitute plan has been offered by these critics of a carefully considered plan for recovery of this industry which directly affects millions of Americans. "The consumer will be adequately protected by the type of Federal supervision which is guaranteed under the code and the agreement is in haimony with it. There is little danger of an excessive rise in the price of gasoline products. To-day the motorist gets his gasoline at bargain prices although the heavy tax burdens on this product make him believe he is paying a high price for his motor fuel. In some cases in the recent past, those taxes have aggregated 240% of the wholesale price of the gasoline." Final decision of a three-judge Federal court on injunction appeals questioning the authority of the Texas Railroad Commission to regulate the flow of oil in that state is being awaited with considerable anxiety by Texas oil men. It is pointed out that between 90,000 and 100,000 barrels of "hot oil" is being produced daily in East Texas in violation of Texas Railroad Commission allowables set at the request of the Federal Government. State and Federal authorities have had little success in stemming this flow of illegal oil and the whole situation is reported practically marking time until the Federal court decision is announced. Hearing of the injunction cases, brought by a number of companies operating in the East Texas field, was concluded 19,st Saturday. The complainants charged that the order was discriminatory is that it permits a well capable of producing only 20 barrels daily to receive the same allowable as a well with a potential of 4,444 barrels. It was also charged that the Federal Administration had ordered the State officials to set the amount of a field and then sent in Federal agents under the authority of the NRA and tried to prosecute under Federal la.ws. With several representatives of the Federal Government appearing in Court, this contention was held strictly untrue, Government counsel stating that the Federal agents were operating under the authority of the NRA and were not co-operating with the Texas Railroad Commission. It was further stated that violations reported by these agents would be prosecuted under the Recovery Act and not as violations of the State Commission orders. A decision favorable to the State and Federal Governments, it was held, would quickly cut down this illegal production with its threat to the maintenance of stable crude oil prices, removing this danger from the nation's oil markets. Granting of the injunctions restraining State or Federal officers from enforcing a 400,000 barrel-daily production allowable in the East Texas field would precipitate a crisis which would call for prompt action by Federal Oil Administration, it is believed. Daily average crude oil production in the United States last week was up above the preceding week and the Federal daily allowable total, reports to the American Petroleum Institute disclosed. A rise in the daily output of 35,200 barrels from the previous week to 2,352,950 barrels brought the daily total 142,950 barrels above the Federal allotment. All three of the main oil-producing States, Oklahoma, Texas and California, exceeded their Federal allowables. Stocks of domestic and foreign crude oil held in the United States on Dec. 16 dipped 208,000 barrels from the previous week's level to 342,639,000 barrels, the Federal Oil Administrator reported. The decline was equal to a daily average Volume 137 of approximately 30,000 barrels, compared with a 100,000 barrel dip in the preceding week. Domestic crude oil stocks were 339,662,000 barrels, off 476,000 barrels from a week ago, while stocks of foreign crude held in this country mounted 268,000 barrels to 2,977,000 barrels. There were no price changes posted during the week. Prices of Typical Crudes per Barrel at Wells. (All gravities where A.P. I. degrees are not shown.) $1.0 $2.45 Eldorado, Ark., 40 Bradford, Pa 1.03 1.20 Rusk, Tex., 40 and over Corning, Pa .87 1.08 Darst Creek Illinois .90 1.23 Midland District, Mich Western Kentucky 1.35 1.08 Sunburst, Mont Mid-Cont., Okla., 40 and above Hutchinson, Tex., 40 and over.... 1.03 Santa Fe Springs, Calif.,40 and over 1.30 1.04 1.03 Huntington, Calif., 26 Spindletop, Tex., 40 and over 1.82 .75 Petrol's, Canada Winkler, Tex .70 Smackover. Ark.. 24 and over REFINED PRODUCTS-SERVICE STATION PRICES OF GASOLINE IN WASHINGTON AND PHILADELPHIA ADVANCEDBULK GASOLINE MARKET IN NEW YORK DULL-GASOLINE STOCKS INCREASE. Advances in retail prices of gasoline in Washington, D. C., and in Philadelphia featured the week in the refined products field. Bulk gasoline demand in New York was dull, with seasonal influences and the approach of the first of the year cent of the Federal tax on gasoline drop playing when important parts in deciding the trend. The Standard Oil Co. of New Jersey advanced the service station and tank wagon price of gasoline at Washington, D. C., 2M cents a gallon for third-grade and 2 cents a gallon for standard and premium grades Monday. The advance was due to improved conditions as competition price-shading lost importance as a market factor in the nation's capital. Friday brought forth a 1-cent a gallon advance in the service station price of gasoline in Philadelphia to 12 eents a gallon, exoluding all taxes by the Atlantic Refining Co. The advance was effective only in Philadelphia. Tank wagon prices were not affected. The local bulk gasoline market was firm to steady with the seasonal dip in consumption being reflected in a slight easing off in demand, although the price structure was well maintained. Then again, the nearness of Jan. 1, when M cent of the 13,6-cent Federal tax on gasoline drops, held off dealers from anticipating future demands. The tone of the market is healthy and the price structure firm to strong. Kerosene prices here held unchanged despite the strength shown in the market recently. The cold snap last week was followed by a sharp gain in demand and some factors had anticipated higher prices. However, refiners held 41-43 water white at 51,4 to 534 cents a gallon, tank ear lots, refineries, although offerings at the lower figure were reported relatively scarce. Barge quotations held at 5 cents a gallon, same basis. Grade C bunker fuel oil was firmly held here at $1.20 a barrel, refinery, despite weakness in the Philadelphia market which brought quotations as low as $1.10 a barrel early in the week, according to reports from that city. Prices in Philadelphia have been around $1.15-1.20 with an easy tone noted but the $1.10-level, if true, shows more weakness in that market than the trade had anticipated. Movements of Diesel oil during the week Was confined mainly to routine trading, refiners holding firm at $1.95 a barrel, refinery, although demand sharpened somewhat late in the week. Industrial oils continued in good demand. Total stocks of gasoline in the United States rose 892,000 barrels last week from a revised figure of 49,910,000 barrels for the previous week to 50,802,000 barrels, estimates made public by the American Petroleum Institute disclosed. A sharp increase in refinery stocks more than wiped out declines in other stocks. Operations at refineries spurted sharply, reporting refineries operating at 65.5% of capacity and running 2,191,000 barrels of crude oil daily, compared with operations at. the rate of 61.1% in the previous week when crude oil runs to stills average 2,042,000 barrels daily. These figures compared with 62.7% of capacity for the week of Dec. 2 and 66.1% in the closing week of November. Price changes follow: Monday, Dec. 18.-The Standard Oil Co. of New Jersey advanced service station and tank wagon prices of standard and premium grades of gasoline 2 cents a gallon and third-grade 234 cents a gallon in Washington, D. C. Friday, Dec. 22.-The Atlantic Refining Co. advanced the service station price of gasoline in Philadelphia 1 cent a gallon to 12 cents, excluding all taxes. Gasoline Service Station, Tax Included. $.156 Minneapolis $ 185 Detroit $ 159 New York 185 New Orleans 193 1934 Houston Atlanta Jacksonville .20 203 Philadelphia t.12 Baltimore 14 185 Kansas City San Francisco: Boston 19 Third grade 104 193 Louisville Buffalo 165 Los Angeles: Above 65 octane_ 18 Chicago 15 21 Third grade Premium .20 Cincinnati 1734 St. Louis 21 Standard 145 Cleveland 1934 t Less taxes. 195 Premium Denver 4435 Financial Chronicle Kerosene, 41-43 Water White, Tank Cares F.O.B. Refinery. 5.0236-.0336iNew Orleans, ex__ __S.0334 New York: Chicago 0436-.0334 1-.06 Tulsa (Bayonne)-$.05%-.0536'Los Ang.„ ex- .043, North Texas 03 Fuel Oil, F.O.B. Refinery or Terminal. $1.05 Gulf Coast C California 27 plus D N. Y. (Bayonne): 5.75-1.001Chicago 18-22 D_ .4234-50 $1.20 Bunker C 80 Phila. Bunker C. 1.15-1.20 Diesel 28-30 D.- _ 1.95 New Orleans C Gas OR, F.O.B. Refinery or Terminal. !Chicago: $.0134 N. Y. (Bayonne): 5.01% Tulsa 28 plus G 0_6.0331-.041 32-36 GO U. S. Gasoline, Motor (Above 65 Octane), Tank Car Lots, F.O.B. Refinery. N. Y.(Bayonne): Chicago N. Y. (Bayonne): $ 05-.0534 Shell Eastern Pet_$.0650 New Orleans,ex .04-.0436 Standard 011 N. J.: Arkansas 04-.043j Motor,U.5___.i.065 New York: 05-.07 Colonial-Beacon_ .0625 California 62-63 octane_ 065 .0650 Los Angeles, ex_ .0434-.07 :Texas •Stand. 011 N. Y_ ,07 0625 Gulf ports 0634-.07% Gulf Tide Water 011 Co. .07 0625 Tulsa 0416 Republic CM :Richfield 011(Cal.) .07 .05% Sinclair Refining_ .0634 Pennsylvania... Warner-Quin. Co_ 07 x Richfield "Golden." z "Fire Chief." $.07. • Long Island City. - I Soviet Russia Reported as Making Definite Change in Oil Export Policy. A definite change in the oil export policy of Soviet Russia is reported in the December issue of "World Petroleum" which states that the Soyouznefteexport (Russian Oil Export Trust) has modified its former aggressive policy of obtaining a large share of world oil markets by price cutting and during the past year has resorted to more rational and purely business methods of disposing of a diminishing quantity of oil available for export. Destructive price wars with the international oil companies have been replaced by a policy of selling less oil for higher prices in rational competition with other companies operating in world oil markets. The publication points out: This change in policy has been brought about by growing domestic demand for petroleum products within Russia as a result of the progress of the program for industrialization of Russia and mechanization of agriculture coupled with declining production during 1933, which leaves a smaller quantity of petroleum available for export. Declining production within Russia is due entirely to lack of adequate equipment and properly trained personnel as the petroleum reserves in Russia rank with the greatest in the world. This lack of adequate equipment will now be rectified largely by purchases of capital equipment from the United States through the use of credits made available by private corporations presently being formed for that purpose; manufacturers who receive credit from the Reconstruction Finance Corporation on the security of Russian orders will also be in a position to remove one of the principal obstancles to Soviet purchases from United States manufacturers of oil drilling and refining equipment-the difficulty of establishing credit in the United States. Finally, the depreciated dollar enables United States oil equipment manufacturers to bid on better than equal terms with their European competitors Federal Judge Attacks Government Regulation of Petroleum Industry-Jurist in Circuit Court at Houston Defends State Sovereignty as Opposed to NRA. Judge Joseph C. Hutcheson of the Federal Circuit Court in Houston, Tex., defended State sovereignty as opposed to the National Recovery Administration when on Dec. 16 he interrupted arguments by attorneys in an oil suit to express his disapproval of certain phases of Federal regulation of the petroleum industry. Associated Press advices from Houston on Dec. 16 reported his remarks as follows: "Where does Congress have to stop?" he inquired of Louis Titus of Washington, Counsel for the Petroleum Planning and Co-ordinating Committee, opposing the suit. "How far can it go in this matter of deciding what happenings within a State affect inter-State commerce?" In the action East Texas oil operators seek restraint of authorities from prosecuting "so-called violators" of the Texas proration order and the National Petroleum Code. Charles E. Fahy, First Assistant Solicitor of the Interior Department, discussed the government's requirement that operators report on the origin of the oil they handle. "I don't believe the time has come that the American citizen has to constitute himself as a sort of secret police," Judge Hutcheson remarked. Again, during Mr. Fahy's argument attempting to justify Federal regulation, Judge Hutcheson said: "If the sovereignty of Texas is gone and we are no longer a sovereign State of the Union but a branch of the Department of the Interior, you may be right. "It seems to me that you are going pretty far to make every man make reports simply because he may some day ship in inter-State commerce." Daily Average of Crude Oil Production Up 35,200 Barrels During Week Ended Dec. 16 1933-Continues to Exceed Allowable Figure-Inventories of Gas and Fuel Oil Again Lower. The American Petroleum Institute estimates that the daily average crude oil production for the week ended Dec. 16 1933 was 2,352,950 barrels, an increase of 140,950 barrels over the allowable figure effective Dec. 1 1933 which was set by Secretary of the Interior Ickes. The current figure also compares with 2,317,750 barrels per day produced during the week ended Dec.9 1933, a daily average of 2,279,850 barrels during the four weeks ended Dec. 16 and an average daily output of 2,060,100 barrels during the week ended Dec. 17 1932. Inventories of gas and motor fuel stocks again declined during the week under review, or from 121,604,000 barrels 4436 Financial Chronicle at Dec. 9 to 120,054,000 barrels at Dec. 16, a decrease of 550,000 barrels. In the preceding week inventories were reduced by 1,320,000 barrels. Further details, as reported by the American Petroleum Institute, follow: Imports of crude and refined oil at principal United States ports totaled 902,000 barrels for the week ended Dec. 16, a daily average of 128,857 barrels, compared with a daily average of 101,571 barrels for the last four weeks. Receipts of California oil at Atlantic and Gulf ports totaled 723,000 barrels for the week, a daily average of 103,286 barrels compared with a daily average of 92,000 barrels for the last four weeks. Reports received for the week ended Dec. 16 1933 from refining companies controlling 92.4% of the 3,616,900-barrel estimated daily potential refining capacity of the United States, indicate that 2,191,000 barrels of crude oil daily were run to the stills operated by those companies and that they had in storage at refineries at the end of the week, 26.950.000 barrels of gasoline and 120,054.000 barrels of gas and fuel oil. Gasoline at bulk terminals, in transit and in pipe lines amounted to 20,492,000 barrels. Cracked gasoline production by companies owning 95.1% of the potential charging capacity of all cracking units, averaged 414,000 barrels daily during the week. DAILY AVERAGE CRUDE OIL PRODUCTION. (Figures in Barrels.) Average Actual Production. Federal Agency 4 Weeks Allowable Week End. Week End. Ended Effective Dee. 16 Dec. 16 Dec. 9 1933. 1933. Dec. 1 1933. Oklahoma Kansas 457,000 112.000 Panhandle Texas North Texas West Central Texas West Texas East Central Texas East Texas .. Conroe Southwest Texas Coastal Texas (not hicludMg Conroe) Total Texas 888,000 North Louisiana Coastal Louisiana Total Loultdana Arkansas Eastern (not incl. Michigan) Michigan Wyoming Montana Colorado Total Rocky Mt.States._ New Mexico California Week Ended Dec. 17 1932. 549,950 107,000 501,500 109,050 492,750 111,750 371.300 90,650 42,700 57,500 23,900 121,100 43,200 399,800 58,100 42.900 43,750 57,100 24,050 120,850 43,350 399,250 53,900 43,350 41,700 57,300 24,000 121,250 43,350 397,600 54,300 43,300 47,800 47,550 24,500 162.600 51,150 334,450 22,850 51,150 104,000 105,850 102,300 111,150 891,200 891,250 885,100 853,200 25,650 46,500 28,050 47,300 26,050 47,200 28.850 35,150 69,300 72,150 73,350 73,250 63,800 33,000 94,200 29,000 28,000 6,060 2,240 32,450 90,850 31,550 29,350 6,550 2,450 32,600 94,750 30,200 29,200 6,900 2,450 32,650 94,500 30,650 29,300 6,900 2,500 33,050 92,700 17,800 31,750 5,450 2,500 36,300 38,350 38,550 38,700 39.700 41,200 450,000 42.050 497.400 42.100 504,400 42,100 478,500 27,600 470,300 Total 2.210.000 2.352.950 2.317.750 2.270.850 2.050.100 Note.-The figures indira-ed above do not include any estimate of any oil which might have been surreptitiously produced. CRUDE RUNS TO STILLS, MOTOR FUEL STOCKS AND GAS AND FUEL OIL STOCKS, WEEK ENDED DEC. 16 1933. (Figures In Barrels of 42 Gallons Each.) Daily Refining Capacity of Plants. Distria. Reporting. Potential Rate. East Coast__ Appalachian... Ind., Ill. Ky__ Okla.,Kan.,Mo. Inland Texas_ Texas Gulf__ Louisiana Gulf_ No. La.-Ark__ Rocky Mount'n California Total. % Crude Runs to Stills. % Daily OyerAverage. ate& a Motor Fuel Stocks. Gas and Fuel Oil Stocks. 582,000 582,000 100.0 440,000 75.6 14,246,000 7,376,000 150,800 139,700 92.6 89,000 63.7 2,042,000 1,087,000 436,600 425,000 07.3 293,000 68.9 7,107,000 4,430,000 462,100 379.500 82.1 197.000 51.9 5,516,000 3,792,000 274,400 165,100 60.2 93,000 56.3 1.205,000 1.725,000 537,500 527,500 98.1 474.000 89.9 4,862,000 6,315,000 162,000 162,000 100.0 101,000 62.3 1,433,000 1,659,000 82,600 76,500 92.6 50,000 65.4 227,000 540,000 33,000 51.9 63,600 78.8 80,700 883,000 716.000 848.200 821.800 96.9 421,000 51.2 13,281,000 92,414,000 Totals week: Geo.16 1933_ 3,616,900 3,342,700 92.4 2,191,000 65.5 b50,802,000 120,054,000 Dec.9 1933._ 3.616.9003,342,700 92.4 2,042,000 61.1 c49,910,000 121.604,000 a Below are set out est mates of total motor fuel stocks in U. S. on Bureau of Mines basis for week of Dec. 16, compared with certain Dec. 1932 Bureau figures: A. P. I. estimate on B. of M. basis, week Dec. 16 1033 A. P.1. estimate on B. of M. basis, week Dec.9 1933 U. S. B. of M. motor fuel stocks, Dec. 1 1932 51,054,000 barrels U. S. B. of M. motor fuel stocks, Dec. 31 1932 53,805,000 barrels b Includes 26,950,000 barrels at refineries. 20,492,000 barrels at bulk terminals, In transit, and pipe lines, and 3.360,000 barrels of other fuel stocks. c Includes 25,862,000 barrels at refineries, 20,648,000 barrels at bulk terminals, in transit, and pipelines, and 3.400,000 barrels of other motor fuel stocks. Because of the many changes made by companies in their method of reporting stocks to the American Petroleum Institute, It has been decided to discontinue our attempt at estimating figures on a Bureau of Mines basis until further notice. Crude Oil Production in Venezuela Showed a Sharp Increase in November as Compared with the Same Month Last Year-Exceeds Shipments. Crude oil production in Venezuela during November 1933 totaled 10,716,502 barrels of 42 gallons each, as compared with 8,766,670 barrels in the same period last year and 10,728,228 barrels in October 1933, according to "O'Shaughnessy's Oil Bulletin." Shipments amounted to 10,398,000 barrels, as against 10,096,000 barrels in the preceding month and 8,377,280 barrels in November 1932. Venezuelan crude oil output during the 11 months ended Nov. 30 1933 totaled 107,919,294 barrels, as compared with 106,010,491 barrels during the first 11 months of 1932, while shipments amounted to 105,739,100 barrels, as Dec. 23 1933 against 100,936,280 barrels in the 1932 period. Comparative figures follow: PRODUCTION AND SHIPMENTS OF VENEZUELAN OIL. [In Barrels of 42 Gallons Each.( Production. Shipments. Month. 1933. Jan..... Feb._ __ March__ April._ May.- June. _ _ July_ __ _ Aug _ ___ Sept.__ Oct ___ _ Nov__ Dec.. Tot. yr_ 1932. 1931. 1933. 1932. 1931. 9,698,964 9,589,088 10,384,451 9,581,700 9,087,000 10,787,289 8,833.778 8,994.242 9,486,327 8,860,600 8,546,100 9,515,725 9,944,518 9,998,250 10,282,727 10,076.000 9,949.300 10.362,346 9,058,356 10,480,750 9,262,503 9,340,400 11,004,200 8,585.690 9,133,045 10,848,460 9,514,909 9.624,000 11,260,000 9,048,694 9,262,374 10,578,631 9,181,369 8,221,600 10,313,300 8,561,200 10,052,418 9,550,761 9,913,192 9,635,500 8,394,200 9,401.400 10,309,267 9,429,632 9,795,887 10,146,200 8,123.800 9,274,100 10,181,844 8,802,687 9,412,329 9,959,200 8,087,300 9,420,000 10,728,228 9.171.320 9,440,165 10,096,000 7,794,100 9,639.300 10,716,502 8,766,670 9,535,068 10.398,100 8,377,280 8,984,320 9,103,700 9.100,800 .... 9.309,368 9,921,889 115.319,859 116.130,816 110,040.080 112,680.864 Senator Borah Urges Secretary Ickes to Prevent Oil Pooling Agreement-Charges Major Companies Would Control Industry-Senator Reynolds also Opposes Plan. Senator Borah of Idaho, in a letter to Secretary Ickes, Oil Administrator, on Dec. 18 listed his reasons for opposing the pending equalization and pooling agreement of the oil industry. Senator Borah contended that under the proposed agreement the major companies would control the industry and would cause ruin to the independents. Earlier objection to the pool and marketing agreements had been expressed by Senator Reynolds of North Carolina, who based his obj,ections on the same grounds given by Senator Borah. In making public his letter on Dec. 18, Senator Borah said that he would fight for restoration of the antitrust laws, partially suspended by the National Industrial Recovery Act, and added that if the oil agreements were adopted they would furnish ample evidence to support his contention that with the anti-trust laws suspended monopolies are arising to the detriment of independent and weakly financed corporations. His letter to Secretary Ickes read: It is my understanding that the petroleum agreement is now before you and that you have not yet approved of the same. It is also my understanding that the Board of Planning and Co-ordination has concluded its consideration of the matter. Hence, I am writing you direct. I hope, Mr. Secretary, that even your crowded hours will permit you to give personal consideration to this proposal. If I construe the instrument correctly, it ought to have further consideration. I call attention particularly to the following provisions: First, with reference to the stabilization committee. The same shall be composed of "one representative from each of two major integrated companies and one representative from a smaller integrated company." Secondly, we find a provision in paragraph 2, as follows: "Such contracts shall contain provisions controlling prices of products to ultimate consumers at retail in accordance with Article V. Rule 26, of the code of fair competition for the petroleum industry, and extending the provisions of said rule to gasoline and (or) other motor fuels, either branded or unbranded." Again, "in case of the violation of any provisions of this agreement and (or) of the standard form of contract and (or) of the code of fair competition for the petroleum industry as determined by a committee as provided for in Sections 2 and 3 hereof. the State wherein such violation occurs, the supplier shall be notified by the committee to suspend deliveries of gasoline and (or) other motor fuel to the offending distributor, jobber, wholesaler or retail dealer, for such period as the committee shall determine, and no party to this agreement shall furnish supplies to the offender during the period of suspension." Again, a paragraph of the pooling agreement provides in part: "The board of governors shall from time to time prescribe policies, rules and regulations for the government of the association and the conduct of its business. It shall fix the dates and places of meetings, prescribe the notice to be given, define quortuns for the transaction of business and, subject to the provisions of this agreement, its entire method of operation, Including the location of its offices and branch offices." Further, in Section 0 of the market agreement, we find parties "are obligated to allow and maintain such marketing margins for distributors, jobbers and (or) wholesalers as shall be determined from time to time." I do not wish to trespass upon your time by entering upon an extended argument, and I therefore submit what seems to me a fair construction of this proposal. First.-It would enable the major companies to control the petroleum industry. Second.-They would have the power under the propobal to fix the price of crude oil, gasoline or fuel oils. 'Mirth-They could punish any one not submitting to these prices by outting off all supplies. Fourth.-It would be within their power to wipe out independent oil companies. Fifth.-It would be within their power to raise the prices to the consumers to any extent which they might think the traffic would bear. Sixth.-I do not find nor see any reviewing power upon the part of any public official or impartial and disinterested tribunal. In conclusion, I am calling your attention to these points, feeling, if I am correct in my construction of the proposal, you would be glad to have them brought to your consideration. Secretary Ickes Orders Survey of Crude Oil Costs to Obtain Data for Petroleum Code-Daily Allowable Crude Output Cut 27,000 Barrels for First 1934 Quarter-Gasoline Inventory Set at 51,500,000 Barrels for Jan. 31. Secretary Ickes on Dec. 20 ordered an immediate survey of the cost of crude oil production to obtain information necessary for the administration of the code for the petroleum industry. "I am ordering the survey of the cost of producing Financial Chronicle crude oil," Mr.Ickes said,"to be conducted by the Petroleum Administration Board under my direction, to obtain data necessary for the administration of the code of fair competition for the petroleum industry." Oil operators expressed some anxiety over the move, pointing out that it would be a logical first step before the promulgation of pricefixing. On the same day Mr. Ickes stipulated that inventories of gasoline at the end of January should total 51,500,000 barrels, an increase of about 500,000 barrels above levels determined for Dec. 31, and also proclaimed daily production allowables for January, February and March of 2,183,000 barrels of crude oil, a reduction of 27,000 barrels daily from current allocations. Details of the announcement follow, as given in a Washington dispatch of Dec. 20 to the New York "Journal of Commerce": The Petroleum Administrative Board is to make the cost of production survey on reportsfrom producers of5,000 barrels daily east of the Mississippi and in Colorado, Montana and Wyoming, and from producers of 10,000 barrels daily in other States. Of the total gasoline stock to be allowed on hand at the end of January, district No. 1, the Atlantic Coast, including all States bordering on the Atlantic, except western New York and western Pennsylvania. is limited to 14,550,000 barrels. District No. 2, which includes western New York, is limited to 2,360,000 barrels. The total daily allowable production in barrels for the first three months of 1934. effective January 1, was allotted among producing States as follows: Illinois, 12,000; Indiana. 2,000; New York, 9,000; Kentucky, 12,000: Ohio, 12,000; Pennsylvania, 36,200; West Virginia, 11,000; Arkansas, 33.000. California. 437,600; Kansas, 110,000; Louisiana, 69,300; Michigan, 29,000; New Mexico,41,200; Oklahoma,446,600; Texas,884,000; Colorado. 2.300; Montana, 6,800; Wyoming, 29,000. Questions Criticism. Harold B. Fell, Executive Vice-President of the Independent Petroleum Association, questioned criticism of the pool and marketing agreement by members of Congress. "The protection given independents in the petroleum industry against Price cutting raids by larger companies which might put them entirely out of business may be jeopardized by attacks made on the proposed pooling and marketing agreements by members"of Congress, either uninformed concerning the true facts of the case or else misled by those opposed to any stabilization program for this vital industrj." he said. "No substitute plan has been offered by these critics of a carefully considered plan for recovery of this industry which directly affects millions of Americans. "The consumer will be adequately protected by the type of Federal supervision which is guaranteed under the code and the agreement in harmony with it. There is little danger of any excessive rise in the price of gasoline products. To-day the motorist gets his gasoline at bargain prices although the heavy tax burdens on this product make him believe he is paying a high price for his motor fuel. In some cases in the recent Past those taxes have aggregated 240% of the wholesale price of the gasoline." Production of Tin Plate in Germany During First Nine Months of Year, 55% Above Same Period of 1932. German production of tin plate in the first nine months of the current year was 55% above the figure for the corm:sponding period of 1932, according to Consul B. F. Yost, Cologne, in a report made public by the U. S. Commerce Department. The Department announced on Nov. 27 that the report showed total output from Januarr-September 1933,amounted to 153,000 metric tons eomparedIrith 97,800 tons for the nine-month period of 1932. Awust production is reported to have reached the record figure of 21,500 metric tons while September output dropped to 18,700 tons. Continuing, the Department said: The favorable development in Germany's tin-plate industry, the report points out, is not only due to the improvement in the domestic market, but gives evidence of a considerable increase in export trade. Exports of German tin plate during the nine months of 1933 amounted to 92,843 metric tons valued at 21,235,000 Rolchmarks compared with 55,930 metric tons valued at 12,507.000 Reichmarks for the corresponding period of 1932, an increase of approximately 65%. German tin plate manufacturers remark upon the steady advance of their product in world markets despite the British tin plate industry's efforts to maintain their old world markets, the report shows. During the current year, heavy increases of German shipments to all leading consumers have taken place. During the first nine months Japan, the best customer, took 22,211 metric tons compared with 17,767 tons in the corresponding Period of 1932. Exports to the Netherlands, Argentina, Brazil and Belgium also registered notable advances. (Par value of Reichsmark, $0.238; current value, $0.364.) Portland Cement Production Again Fell Off During November-Shipments Also Declined-Inventories Increased Slightly. According to the United States Bureau of Mines, Department of Commerce, the Portland cement industry in November 1933 produced 4,672,000 bbls., shipped 4,463,000 bbls. from the mills, and had in stock at the end of the month 19,711,000 bbls. Production of Portland cement in November 1933 showed a decrease of 27.7% and shipments a decrease of 6.7%, as compared with November 1932. Portland cement stocks at mills were 4.9% higher than a year ago. In the following statement of relation of production to capacity the total output of finished cement is compared with 4437 the estimated capacity of 163 plants at the close of November 1933, and of 165 plants at the close of November 1432. RATIO OF PRODUCTION TO CAPACITY. Not', 1932.INor. 1933. Oct. 1933. Sept. 1933. Aug. 1933. The month The 12 months ended 29.1% 29.0% 21.2% 22.1% 25.5% 35.9% 23.9% 24.5% 25.5% 26.5% PRODUCTION, SHIPMENTS, AND STOCKS OF FINISHED PORTLAND CEMENT, BY DISTRICTS. IN NOVEMBER 1932•AND 1933. (IN THOUSANDS OF BARRELS.) November. Dfalrfats. Stocks at End Production Shipments. of Month. Stocks at End of Oct.a 1932 1933 1932 1933 1932. 1933. 1933. Eastern Pa., N. J.& Md 1.002 613 1,115 815 New York & Maine 328 296 364 278 Ohio, Western Pa.& W.Vs 757 246 417 321 Michigan 312 169 158 144 Wis., Ill., Ind. & Ky 988 679 503 520 Va., Tem., Ala., Ga., Fla. & La 680 44 518 497 Eastern M., Ia., Minn. & S. Dalt_ 894 747 379 462 W.Mo., Neb., Kans., Okla.& Ark_ 546 358 370 387 Texas 351 13 35 218 Colo., Mont., Utah, Wyo.& Idaho_ 107 149 8 95 California 424 62 455 654 Oregon and Washington 73 20 6 72 3,681 1,278 2,692 1,406 1,872 1,440 2,029 1,710 554 568 1,033 525 2,787 1,754 2,818 1,641 1,820 1,481 2,278 1,644 628 400 991 469 3,990 1,735 2,893 1,616 1,662 1,530 1.993 1,674 714 346 1,016 333 Total 6,462 4,67 4.78 4,463 18,788 19.711 19,502 PRODUCTION, SHIPMENTS, AND STOCKS OF FINISHED PORTLAND CEMENT, BY MONTHS, IN 1932 AND 1933. (IN THOUSANDS Or BARRELS.) Month. Production. 1932. January February March April May June July August September October November December 5,026 3,971 4,847 5,478 6,913 7.921 7,659 7,835 8,210 7,939 6,462 4,248 1933. 4.aomm-404, wmw -4w9;woomoscov 1.2-41gowcotow4...4v, m Volume 137 Shipments. 1932. 3,393 3.118 3,973 6,536 8.020 9,264 9,218 10,968 9.729 8,743 4,782 2,835 1933. 2,502 2,278 3,510 4,949 6,709 7,979 8.697 5.994 6,517 6,750 4,463 Stocks at End of Month. 1932. 1933. 25,778 26.657 27.545 26,496 25,394 24,043 22.512 19,398 17,878 17,084 18,788 20,205 20,624 21,125 21,298 20,542 20.117 19.936 19,848 22,078 21.216 *19,502 19,711 Total 76,509 80,579 a Revised. Note.-The statistics above presented are comp' ad from reports for November received by the Bureau of Mines from all manufacturing plants except two, for which estimates have been included in lieu of actual returns. Copper Price Advances Moderately as Code Prospects Improve-Zinc Unsettled. "Metal and Mineral Markets"for Dec. 21 1933, says that the total volume of business reported in major non-ferrous metals last week was smaller than that of the preceding 7-day period. Prices moved irregularly, copper strengthening on what many in the trade regarded as a more favorable outlook for an early settlement of the code difficulties, with zinc unsettled and lead just about holding in the face of unfavorable November statistics. Tin prices moved within narrow limits. Silver also showed little net change for the week, with trading lacking snap on the approach of the holidays. Opinion on business prospects for early next year was almost unanimous for a rise in activity, based largely on the spending program of the Administration. Steel operations again increased. The same publication says: Copper at 8% Cents. Good buying abroad at higher prices-largely the result of discounting early settlement of code difficulties-was apparently the main factor in moving the price of copper last week above the 8-cent level. Some business at 8.25 cents was booked as early as Friday, but these sales, as well as those made at the same figure on Saturday, applied to metal for shipment during tho second quarter of next year. On Monday, however, the market was firmly established on an 8.25-cent basis, with two small lots selling on Tuesday at 83 cents and 8;,6 cents, respectively. The volume of this higher-price business was not sufficient, compared with the total tonnage sold, to warrant any variation from the 8.25 cents quotational basis. Early yesterday the metal was quoted at 8% cents, but before the close of the market it was available in several directions at 8.25 cents. The sales total for the week was somewhat less than that for the preceding 7-day period. Decline in demand was generally attributed to disinclination on the part of consumers to add to stocks at this season, and to the influence of the narrowing margin between prevailing prices and "guess-estimates" of the code minimum price. General expectations in the trade are apparently that current deliberations will result in the submission of a copper code for public hearing early next year. Industrial improvement abroad and the discounting of an early settlement of copper code problems in this country were said to be the principal factors behind the sustained and improved buying of copper in foreign markets. During the 7-day period prices ranged from 7.75 cents to 8.50 cents, c. I. f. Guggenheim Brothers announced that on Jan. 1 1934, the company will withdraw from the business of selling copper as agent for producing companies. This agency has been one of the largest sellers of copPer, with offices in the United States, Great Britain, France. and Germany. Kennecott Copper Corp. will take over the Guggenheim copper sales organization and carry on the business after the first of the year. Fabricators, on Tuesday. announced an advance to-day in the base prices of virtually all their products ranging from a-cent a pound on yellow brass, red brass, and copper seamless tubes, to %-ccent a pound on grade "A" phosphor bronze sheets. Zinc Declines. Demand for zinc fell off markedly last week, with prices falling below the 4.50-cent level. Business booked during the 7-day period was largely .for Financial Chronicle 4438 small lots for prompt or near-by delivery. Weakness in the price structure of the metal developed on Tuesday. when a lot of fair tonnage changed hands on a 4.45-cent basis. Yesterday this price level was firmaly established, with the metal available in several directions on that basis. The International Zinc Cartel met in Brussels during the week and decided to prolong without modification the existing agreement. Discussion centered around production and consumption of zinc, and it was shown that the statistical position of the market in the foreign field remains favorable. Lead Unchanged. The sales volume in lead fell to leas than one-half of that reported for the previous week. The price was maintained at 4.15 cents per pound. New York, the contract basis of the American Smelting & Refining Co., and 4.05 cents, St. Louis. The market presented a fairly steady tone until operators were confronted with the rather large increase of 13.122 tons in stocks of refined lead at the end of November. Whether the price will be affected by the statistics depends on how consumers respond to the news. Consumers, in the opinion of competent observers, are not well covered against forward requirements, and buying of a substantial character might easily develop soon. The American Bureau of Metal Statistics reports that 30,681 tons of refined lead were shipped to domestic consumers during during November, which compares with the high of 45,177 tons last July. A summary of the statistics on production and distribution of refined lead for October and November follows: REFINED LEAD STATISTICS. (In Short Tons.) Production-Domestic ore Secondary and foreign Total Stock at beginning Stock at end Domestic shipments • Odober. November. 35,399 6,404 38,459 5,397 41,803 166,201 174,721 33,314 43,856 174,721 187,843 30,681 Little Change in Tin. Tin deliveries for December will probably be a little larger than last month, perhaps exceeding 3,500 tons, according to preliminary estimates. There was a little buying for account of tin-plate manufacturers in the last week, but the price showed no important variation throughout the period. Exports of tin from countries participating in the control scheme amounted to 6.178 long tons during October, against 4,492 tons in September, and 5.547 tons in August, according to the International Tin Committee. At a recent meeting of the Commitee, held in Paris, it was announced that the quotas for 1934 received final ratification. Tin in the hands of the pool still unsold, it was stated, will be liquidated in proportion to the demand. Chinese 99% tin, prompt shipment, was quoted as follows: Dec. 14. 51.50 cents: 15, 51.50 cents; 16. 51.60 cents; 18. 51.75 cents; 19, 51.62 cents; 20, 51.25 cents. Steel Output Rises Sharply-Mills Pressed for Shipments Against Expiring Contracts-Price of Steel Scrap Again Advances. Steel operations at the beginning of this week were indicated at 34.2% of capacity, an increase of 2.7 points over Monday a week ago, when the rate was 31.5% and a gain of 5.8 points over the 28.3% rate of two weeks ago, according to telegraphic advices received by the American Iron & Steel Institute on Dec. 18. The "Wall Street Journal" in discussing these figures had the following to say: In actual tonnage, the increase amounts to a gain of8% over a week ago and 17% above two weeks ago. Compared with the low rate of 25.2% In the week beginning Nov. 6, the current operations show an expansion of 9 points, or about 36% in tonnage produced. The American Iron & Steel Institute started making public weekly operating figures on Oct. 23 last, when the rate was 31.6%. On Oct. 30. It was 26.1%; on Nov. 6, 25.2%; on Nov. 13, 27.1%; on Nov. 20. 26.9%; on Nov. 27,26.8%;on Dec. 4.28.3%;on Dec. 11.31.5%,and now 34.2%. Plan Price Announcements Earlier. Continued comparatively heavy specifying against contracts which must be completed before the end of the fourth quarter has been responsible for the steady climb in steel operations in the past few weeks. As a result of this tendency, and the insistence by the Steel Institute that orders must be filled by Dec. 31, there is a plan on foot in the industry to make price announcements earlier than in the past. Heretofore, the quotations for the succeeding quarter have usually been decided upon by the beginning of the final month of the previous quarter. In other words, prices for first quarter, 1934, delivery were announced around Dec. 1. However,this has caused a rush among consumers to have orders booked at the old levels, and caused some inconvenience in the mills to fill the requirements of customers. There is a feeling in some circles that further advances in quotations will be decided upon for the second quarter, 1934, but that the new prices will be announced before Feb. 15, and probably shortly after the middle of next month. Such action would give consumers time to figure accurately on their needs, and would eliminate the rush for steel in the last few weeks of any current quarter. Action by NRA It is probable that a change le the time for announcing prices, such as is now being discussed by some interests, will require action by those in charge of the NRA steel code. Thus, a final decision is not likely to be reached until the next meeting of the board of directors of the American Iron & Steel Institute about the middle of next month. The upward trend in steel operations, which is unusual for this season of the year,is quite a surprise to many,although some of the most conservative authorities stated a month ago that a rising trend was likely to develop. However, this view was not shared generally, even in the industry, because so many looked for the normal material set-back in activities as the end of the year approached. Let-down After Jan, 1 Likely. It is sun likely that there will be some let-down in the rate of output after the first of the new year. This would not be exceptional, because it would represent the so-called breathing spell for consumers who are are taking inventory, and who will not be giving consideration to their prospective needs. However, with probabilities that there will be a better demand from the automobile industry before the end of January, and with rail purchases increasing and public works requirements expanding, it is predicted in some Dec. 23 1933 quarters that there will be a resumption of the uptrend in output after any lull which may develop early in January. Further sharp expansion in specifications against expiring fourth quarter contracts has resulted in an upward spurt in steel ingot output, reported the "Iron Age" of Dec. 21. Although production at the beginning of the week was scheduled at 34.2%, actual operations have already reached 36%, with the likelihood that they will rise still higher. The gain since a week ago is five and one-half points, or 18%. The "Age" further went on to say: The increases are widely distributed, Chicago operations being up 14 Points to 40%, Pittsburgh being up four points to 28%. eastern Pennsylvania up three points to 25%.the Valleys up three points to 38%.Cleveland up 5 points to 52%, Buffalo up 14 points to 41%. the Wheeling district up 5 points to 45% and Detroit up 7 points to 45%. Most steel buyers have specified that shipments against contracts be made on Dec. 30 or 31 so as to avoid receiving material during inventory taking, but mills are accepting releases for delivery at their discretion. The pressure on producers has become so great that it is now doubtful whether they will be able to fill all shipping orders by the end of the month. Undoubtedly many buyers were tardy in sending in specifications because of their unfamiliarity with code restrictions. The current rush to specify, therefore, represents a piling up of deferred releases. The Main motive of buyers, of course, is to protect themselves against price advance that become effective upon the fulfilment of their present commitments. The current contra-seasonal improvement in steel business, therefore, is partly artificial. December, in effect, is borrowing production from January and February. Whether there will be an appreciable decline in mill operations after Jan. 1 cannot be predicted with certainty. Steel required for identified structures is exempt from the code regulations covering quarterly contracts, and hence much of the material required for public works projects now being awarded will not be rolled until next year. Steel products on which prices were not advanced for the first quarter, such as sheets and strip steel, are being ordered sparingly because of approaching inventories and should move more freely in January, thereby tending to offset the expected decline In realeases of other materials. Similarly, a large part of the railroad tonnage placed or in prospect will not reach the mills until next year. In this case, however, much of the steel will not affect mill operations until late in the first quarter or some time in the second quarter. It is also becoming apparent that a resumption of automodve purchases of steel op an important scale will not occur until some time next month. Motor-car builders are not only slow in getting production started on their new models, but still have considerable stocks of steel bought at lower prices. Output in January. however, may reach 200,000 cars, according to present estimates, or twice the probable total for the current month. A Western railroad has bought 25,000 tons of rails and the City of Detroit has ordered 2.700 tons. The Lehigh & Hudson River will purchase 1,000 tons with its own funds, while the St. Paul has obtained approval of a Federal loan to buy 50,000 tons. The Wabash and Illinois Central have asked for Federal loans for maintenance expenditures, the former for the purchase of 13,388 tons of rails. In the railroad equipment field the inquiries of the Van Sweringen roads for 12.745 freight cars and 20 locomotives have been supplemented by other car and repair programs. The Central of Georgia will buy 200 coal cars, the Lehigh & New England will order 500 freight cars of various types, and the Lehigh Valley will rebuild 2.000 cars and repair 60 locomotives. Fabricated steel awards, at 17,500 tons, compare with 28,300 tons last week and 22,300 tons two weeks ago. New projects total 14,400 tons as against 12.500 tons a week ago. Pig-iron shipments against contract commitments have increased steadily. December deliveries in some centers will be 75% larger than those of November. Machine tool builders have booked large orders from both domestic and foreign automobile manufacturers. Buick, Citroen and Peugeot have all bought generously, although the Peugeot orders are subject to ratification and may finally be switched to European machinery builders. The "Iron Age" scrap composite, which made its first advance since August three weeks ago, has risen again, now standing at $10.67 a gross ton, compared with $10.25 last week. Export demand for scrap will be adversely affected by a new agreement under which Poland will buy 75% of its requirements from Germany. Poland had been shut out of the German market since 1925. The "Iron Age" composite prices for finished steel and pig iron are unchanged at 2.028c. a lb. and $16.90 a ton respectively. Ferromanganese has been advanced $3 a ton to $85. seaboard, in carload lots, for first quarter delivery. Electric ferrosilicon has been advanced by a similar amount to $77.50, delivered. On spiegoleisen, however, persistent foreign competition has been recognized and the current $27 a ton price is being asked only in non-competitive territory on carload lots. Carloads are quoted at $26 where competition is severe, and quantities of 100 tons or more will be sold at $24. THE "IRON AGE" COMPOSITE PRICES. Finished Steel. Dec. 19 1933, 2.0280. s Lb. Based on steel bars, beams, tank Plates 2.0280. wire, rails, black pipe and sheets. One week ago One month ago 2.0150.1 These products make 85% of the One year ago 1.9480.1, United States output. Low. 1.8070. Apr. 18 1933 2.036o. dot. .. Feb. 2 1.9260. 1932 1.9770. Oct. 4 1.945-e. Dec. 20 1931 2.037e, Jan. 13 2.018e. Dec. 9 1930 2 2730, Jan. 7 2.2730. Oct. 29 1929 2.317o, Apr. 2 2.2170. July 17 1928 22860. Deo, 11 2.212e. Nov. 1 1927 2 402o. Jan. 4 Pig Iron. Dec. 19 1933, 818.90 a Gross Ton. Based on average of baste Iron at Valley One week ago $16.90 furnace foundry irons at Chicago, One month ago 16.61 Philadelphia, Buffalo. Valley, and 13IrOne year ago 13.56 mingham. Low. High. $13.56 Jan. 3 1933 8113.90 Dec. 5 13.56 Dec. 6 1932 14.81. Jan. 5 14.70 Dec. 15 1931 15.90 Jan. 6 15.90 Dec. 16 1930 18.21 Jan, 7 18.21 Dec. 17 1929 18.71 May 14 July 24 17.04 18.59 Nov.27 1928 17.54 Nov. 1 10.71 Jan, 4 1927 Stall Scrap. Dec. 19 1933, $10.67 a Gross Ton. Based on No. 1 heavy melting steel $10.25 quotations at Pittsburgh. Philadelphia. One week ago 9.83 and Chicago. One month ago 6.92 One year ago 1933 1932 1931 1930 1929 1928 1927 4439 Financial Chronicle Volume 137 High. $12.25 Aug. 8 8.50 Jan. 12 11.33 Jan. 6 15.00 Feb. 18 17.58 Jan. 29 16.50 Dec. 31 15.25 Jan. 11 Low. $9.75 Jan. 3 6.42 July 5 8.50 Dec. 29 11.25 Dec. 6 14.08 Dec. 3 13.08 July 2 13.08 Nov. 22 "Steel," of Cleveland, in its summary of the iron and steel markets, on Dec. 18 stated: Steel market activity was quickened last week by a strong combination of the second largest weekly awards in 1933 for structural material, negotiations for upward of 13,000 freight cars with other railroad programs maturing, a further flurry in scrap prices, and the expiration Jan. 1 of all contracts carrying prices lower than those announced for first quarter. The result-wholly contrary to the seasonal trend-was a 4-point rise in steelworks operations to 33%, highest in eight weeks, and a sudden expansion in shipments by some producers to a level exceeding even those of last July. The drive for specifications may well engage iron and steelworks at or near the present rate over the holiday period. Since comparatively few first quarter contracts have been concluded. mills may be confronted with lean order books Jan. 1, and some apprehension is expressed concerning the production situation in the early weeks of January. The probability, however, is that automobile manufacturers will begin specifying vigorously for material for new models, while a new policy with regard to quoting is calculated to relieve stress at the close of the quarter, such as now evident, and to spread business more evenly. This policy provides for the announcement of a quarter's prices at least two months before the beginning of the quarter. For example, it is expected by about Jan. 15 prices for the second quarter will be issued, and present indications point to a rise of $2 to $3 a ton OD bars and strip. and $2 on semi-finished steel, plates and shapes. Nearly 300,000 tons of steel will be required for the 12.775 freight cars and 167 passenger and baggage cars for which Federal financing has been concluded. Of these, the Erie's list of 3,775 freight cars. 125 passenger and eight baggage cars already are up for figures. This program by the Van Sweringen lines is believed to be only the beginning, and possibly the smallest of Impending car business. Included in the loan just announced by the Public Works Administration is 30 locomotives. Other developments in railroad material are purchases of 13,000 tons of tie plates by the Pennsylvania from the Republic Steel Corp. and 12,000 tons from Weirton Steel Co. and the Pennsylvania's distribution of 25,000 additional tons of miscellaneous steel to other interests. Western Pacific Is inquiring for 26,000 tons of rails and fastenings, Missouri Pacific for 25,000 tons, and Lehigh & New England for 500 freight cars. Except the week of May 6, when 126,000 tons of structural material was ordered for the San Francisco-Oakland bridge, awards for the past week. amounting to 35,170 tons, were the largest of the year. This tonnage was built up by 12,000 tons for 26 bridges in the New York Central's grade elimination project at Syracuse. N. Y.; 5.000 tons for the Mathieson Alka!i Co., Port Arthur, Tex., and 4,000 tons for the San Francisco postoffice. Miscellaneous structural steel requirements, mainly for public work, are increasing. Fabricators have an advantage in the protections given them on prices for specific jobs, extending to the time those jobs are closed; with these exceptions, all other fourth quarter contracts expiring automatically,Jan. 1. The movement of pig iron is unusually brisk, some of the lake furnaces shipping nearly twice as much in December as last month. Orders for January delivery have improved, but few melters are contracting for the full first quarter. A Pittsburgh furnace is inquiring for six months'supply of coke, approximately 60,000 tons. Scrap prices are up sharply for the third consecutive week. Steelworks operations last week were increased in all but two districts. Detroit was up 16 points to 52%, Cleveland 5 to 59, Pittsburgh 4 to 28. Chicago 4 to 2934. eastern Pennsylvania 43. to 23, Youngstown 1 to 36, and Buffalo 1M to 2534. The Wheeling district remained unchanged at 41, and Birmingham at 52, while New England was down 10 points to 71%. Any change in the rate this week is expected to be upward. "Steel's" iron and steel composite last week remained $32.42, and the finished steel composite, $51.10; while the scrap index was up 26 cents to $10.17. Steel ingot production for the week ended Dec. 18 is placed at 33% of capacity, reports the "Wall Street Journal" of Dec. 19. This compares with 30% in the previous week and with a shade under 28% two weeks ago. The "Journal" further states: United States Steel is estimated at around 30%, against 2734% in the week before, and a little below 26% two weeks ago. Independent companies are credited with a rate of 35%, compared with 3134% in the preceding week and 2934% two weeks ago. The following table gives the percentage of production in the corresponding week of previous years, together with the approximate change from the week immediately preceding: Industry. 1434-1 24 -1 34 -3 631.6- ii 80 -2 15 25 41 64 82 1097 nn IZ _I_ A 7‘11Z _I_ X On Dec. 20 total Reserve bank credit amounted to $2,686,000,000, an increase of $9,000,000 for the week. This increase corresponds with an increase of $86,000,000 in money in circulation offset in part by an increase of $54,000,000 in Treasury currency, adjusted, and decreases of $21.000,000 in unexpended capital funds, non-member deposits, &c.. and $2,000,000 in member bank reserve balances. The System's holdings of bills discounted and of bills bought in open market decreased $3,000,000 each. Holdings of the various classes of United States Government securities were practically unchanged. Beginning with the statement of May 28 1930, the text accompanying the weekly condition statement of the Federal Independents. - yi -1 -3 -1 1434-1 23 -1 30 -3 63 +1 79 -3 Bituminous Coal Production Continues Below Corresponding Period Last Year-Anthracite Output Also Lower. According to the United States Bureau of Mines, Depart-. meat of Commerce, the total production of bituminous coal during the week ended Dec. 9 1933 was estimated at 6,600,000 net tons, an increase of 375,000 tons, or 6%, over the output in the holiday week preceding. The average daily rate, however, declined 11.6%. Production during the week in 1932 corresponding with that of Dec. 9 amounted to 6,828,000 tons. Anthracite production in Pennsylvania during the week ended Dec. 9 1933 amounted to 880,000 net tons, as against 903,000 tons in the preceding week. The average daily rate of output decreased 18.8%. Production during the corresponding week of 1932 amounted to 936,000 tons. The Bureau's statement follows: ESTIMATED UNITED STATES PRODUCTION OF COAL AND BEEHIVE COKE (NET TONS). Week Ended. Dec. 9 1933.c Dec. 2 1933.d Calendar Year to Date. Dec. 10 1932. 1933. 1932.e 1929.e Bitum. Weekly total _ _ 6,600,000 6,225,000 6,828,000 306,917,000 282,374,000 501,610,000 Daily average_ 1,100,000 1,245,000 1,138,000 1,061,000 978.000 1,733,000 Pa. Ana. b: Weekly total _ _ 880,000 903,000 936,000 46,047,000 45,375,000 68,521,000 Daily average_ 146,700 180,600 156,000 161,300 158,900 240,000 Beehive Coke: Weekly total_ _ 20,000 22,900 767,200 21.000 706,000 6,210,900 6.184 3,333 3.817 Daily average_ 3,500 2.410 21,198 a Includes lignite, coal made into coke, local sales and colliery fuel b Includes Sullivan county, washery and dredge coal, local sales, and colliery fuel. c Subject to revision. d Revised. e Slight adjustments made in production figure for first week in January to make accumulation comparable with year 1933. ESTIMATED WEEKLY PRODUCTION OF COAL BY STATES(NET TONS)a. Week Ended. State. Alabama Arkansasjand Oklahoma Colorado Illinois Indiana Iowa Kansas and Missouri Kentucky-Eastern Western Maryland Michigan Montana New Mexico North Dakota Ohio Pennsylvania (bituminous) Tennessee Texas Utah Virginia Washington West Virginia-Southern 13 Northern c Wyoming Other States as Total bituminous coal Pennsylvania anthracite b. Total coal Dec. 2 1933. 180,000 41,000 1125,000 790,000 280,000 I. 56,000 (101,000 (435,000 1136,000 %,30,000 10 9,000 r 48,000 I 25,000 48.000 T350,000 1,608,000 50,000 16,000 85,000 145.000 19,000 1,120.000 436,000 103,000 9,000 Nov. 25 1933. Dec. 3 1932. Dec. 5 1931. 185,000 175,000 212,000 49,000 73,000 65,000 131.000 112,000 183,000 856,000 860,000 1,005,000 348,000 295,000 _301,000 74,000 85,000 63,000 116,000 142,000 153.000 581,000 548,000 547,000 150,000 190,000 199,000 29,000 33,000 40,000 14,000 10,000 10.000 57,000 45,000 77,000 38,000 25,000 26,000 54,000 47,000 49,000 453,000 385,000 418,000 1.910,000 1,626,000 1,592,000 56,000 70,000 82,000 13,000 15,000 17,000 72,000 63,000 137,000 147.000 184,000 185,000 54.000 33,000 1 21,000 1,340,000 1,322,000 1,270,000 520,000 339,000 447.000 81,000 132,000 114,000 6,000 12.000 4.000 November 1923 Average.d 1409.000 100.000 P236,000 _1,571,000 Ai536,000 m 128,000 A 175,000 724,000 j 218,000 ,k35,000 26,000 83,000 62,000 35,000 764,000 2,993,000 117,000 29,000 112,000 217,000 72.000 1,271.000 776,000 184,000 5,000 a 6,225,000 7,320,000 6,750,000 7,302,000 10,878,000 903,000 1,398,000 1,246,000 1,243,000 1,896,000 7 128.000 8.718,000 7,996,000 8,545,000 12,774,000 a Figures for 1931 and 1923 only are final. b Includes operations on the N.Sc W.; C.& O.; Virginian: K.& M.;and B.C.& G. c Rest of State, including Panhandle. d Average weekly rate for entire month. Current Events and Discussions The Week with the Federal Reserve Banks. The daily average volume of Federal Reserve bank credit outstanding during the week ended Dec. 20, as reported by the Federal Reserve banks, was $2,687,000,000, an increase of $20,000,000 compared with the preceding week and of $495,000,000 compared with the corresponding week in 1932. After noting these facts, the Federal Reserve Board proceeds as follows: (I. S. Steel. 1932 1931 1930 1929 1928 I 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 stocks 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. 20, in comparison with the preceding week and with the corresponding date last year, will be found on subsequent pages, namely, pages 4493 and 4494. Beginning with the statement of March 15 1933, new items were included as follows: 1. "Federal Reserve bank notes in actual circulation," representing the amount of such notes issued under the provisions of paragraph 6 of Sec. 18 of the Federal Reserve Act as amended by the Act of March 9 1933. 2. "Redemption fund-Federal Reserve bank notes." representing the amount deposited with the Treasurer of the United States for the redemption of such notes. 4440 Financial Chronicle 3. "Special deposits—member banks," and "Special deposits—nonmember banks," representing the amount of segregated deposits received from member and non-member banks. A new section has also been added to the statement to show the amount of Federal Reserve bank notes outstanding, held by Federal Reserve banks, and in actual circulation, and tho amount of collateral pledged against outstanding Federal Reserve bank notes. Changes in the amount of Reserve bank credit outstanding and in related items during the week and the year ended Dec. 20 1933 were as follows: Increase (+) or Decrease (—) Since Dec. 20 1933. Dec. 13 1933. Dec. 211932. Bills discounted Bills bought U. S. Government securities Other Reserve bank credit 115,000,000 113,000,000 2,432,000,000 25,000,000 +14.00,000 TOTAL RES'VE BANK CREDIT Monetary gold stock Treasury currency adjusted 2,688,000.000 4,323,000,000 1 970,000,000 +54,000,000 —3,000,000 —3,000,000 +9,000,000 Money in circulation 5,849,00,000 +86,000,000 —2,000,000 Member bank reserve balances 2,636,000,000 Unexpended capital funds, non-mem494,000,000 —21,000,000 ber deposit, &c —155,000,000 +80,000,000 +581,000,000 +506,000,000 —165,000,000 +60,000,000 +119,000,000 +190,000,000 +93,000,000 Returns of Member Banks in New York City and Chicago—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 New York City, as well as those in Chicago, on Thursday, 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 City 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 City statement, of course, also includes the brokers' loans of reporting member banks. The grand aggregate of brokers' loans the present week shows a decrease of $7,000,000, the total of these loans on Dec. 20 1933 standing at $753,000,000, as conpared with $331,000,000 on July 27 1932, the law record for all time since these loans have been first compiled in 1917. Loans "for own account" decreased from $629,000,000 to $621,000,000, loans "for account of out-of-town banks" increased from $124,000,000 to $127,000,000, while loans "for account of others" decreased from $7,000,000 to $5,000,000. The Federal Reserve Board's condition statement of weekly reporting member banks in 90 leading cities on Dec. 13 shows increases for the week of 8122,000,000 in net demand deposits and $83,000,000 in reserve balances with Federal Reserve banks, and decreases of 881,000,000 in loans and investments, $11,000,000 in time deposits and $50,000,000 in Government deposits. Loans on securities increased 836,000,000 at reporting member banks In the New York district and 840 000,000 at all reporting member banks. "All other" loans declined $57,000,000 in the New York district and $66.000,000 at all reporting banks. Holdings of United States Government securities increased 811,000,000 In the Chicago district and 812,000,000 at all reporting member banks. Holdings of other securities declined 362,000,000 In the New York district, $10.000,000 in the Chicago district and 867,000.000 at all reporting banks. Borrowings of weekly reporting member banks from Federal Reserve banks aggregated 825.000,000 on Dec. 13, an increase of $1,000,000 for the week, Licensed member banks formerly included in the condition statement of member banks in 101 leading cities, but not now included In the weekly statement, had total loans and investments of $926,000,000 and net demand, time and Government deposits of $950.000,000 on Dec. 13, compared with 8921,000.000 and $910,000,000. respectively, on Dec. 6. , A summary of the principal assets and liabilities of the reporting member banks, in 90 leading cities, that are now Included in the statement, together with changes for the week and the year ended Dec. 13 1933, follows: ,4 Loans and investments—total Loans—total On securities All other Investments—total CONDITION OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL RESERVE CITIES. New York. Dec. 20 1933, Dec. 13 1933. Dec. 21 1932. U. S. Government securities Other securities Loans and investments—total 6,730,000,000 6,650,000,000 7,015,000,000 3,361,000,000 3,344,000,000 3,486,000,000 Net demand deposits Time deposits Government deposits 1,666,000.000 1,663, 00,000 1,620,000,000 1,695,000,00J 1,681.000,000 1,866,000,000 Due from banks Due to banks 3 369,000,000 3,306,000,000 3,569,0 0,000 Borrowings from Fed. Res. banks Investments—total 797,000,000 53,000,000 Reserve with Federal Reserve Bank Cash in valut 798,000,000 1,066,000,000 43,000,000 12,000,000 Net demand deposits Time deposits Government deposits 5 141.000,000 5,210,000,000 5,674,000,000 707,000,000 721,000,000 885,000,000 414,000,000 327,000.000 176,000,000 Due from banks Due to banks 78,0000,00 78,000,000 87,000,000 1,092,000,000 1,111,000,000 1,450,000,000 Borrowings from Federal Reserve Bank_ Loans on scent. Co brokers & dealers: 621,000,000 For own account 127,000,000 For account of out-of-town banks For account of others 5,000,000 Total On demand On time 629,000,000 124,000,000 7.000,000 379,000,000 12,000,000 4,000,000 753,600,000 760,000,000 395,000,000 494,000,000 259,000,000 493,000,000 267,000,000 234,000,000 161,00,000 Chicago. 1 226,000,000 1,177,000,000 1,092,000,000 Loans—total On securities All other Investments—total U. S. Government securities Other securities Reserve with Federal Reserve Bank Cash in valut Net demand deposits Time deposits Government deposits Due from banks Due to banks Borrowings from Federal Reserve Bank_ 8,471,000,000 —26,000,000 —432,000,000 3,596,000,000 +40,000,000 —201,000,000 4,875,000,000 —66,000,000 —231,000,000 8,048,000,000 —55,000,000 +129,000,000 5,148,000,000 +12,000,000 +222,000,000 2,900,000,000 —67,000,000 —93,000,000 10,775.000,000 +122,000,000 —237,000,000 4,3E6,000,000 —11,000,000 —267,000,000 736,000,000 —50,000,000 +422,000,000 1,190,000,000 +67,000,000 —414.000.000 2.669,000,000 +9,000,000 —483,000,000 25,000,000 +1,000,100 —25,000,000 2,269,000,000 2,251,000,000 2,502,000,000 1 100,000,000 1,05.5,000,000 1,067.000,000 U.S. Government securities Other securities Loans and investments—total Increase 1+) or Decrease(—) Since Dec. 13 1933. Dec. 6 1933. Dec. 14 1932, $ S s 16,519,000,000 —81,000,000 —303,000.000 Reserves with Federal Reserve banks_ 1,907,000,000 +83,000,000 +12,000,000 249,000,000 +13,000,000 +47,000,000 Cash in vault Loans—total On securities All other Dec. 23 1933 Complete Returns of the Member Banks of the Federal Reserve System for the Preceding Week. The Federal Reserve Board resumed on May 15 the publication of its weekly condition statement of reporting member banks in leading cities, which had been discontinued after the report issued on March 6, giving the figures for March 1. The present statement covers banks in 90 leading cities instead of 101 leading cities as formerly, and shows figures as of Wednesday, Dec. 13, with comparisons for Dec. 6 1933 and Dec. 14 1932. As is known, the publication of the returns for the New York and Chicago member banks was never interrupted. These are given out on Thursday, simultaneously with the figures for the Reserve banks themselves, and cover 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 90 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 close of business on Dec. 13: 651,000,000 664,000,000 640,000,000 339,000,000 312,000,000 335,000,000 329,000,000 361,000,000 279,000,000 575,000,000 513,000,000 452,000,000 365,000,000 210,000,000 308,000,000 205,000,060 257,000,000 195,000,000 369,000,000 45,000,000 359,000,000 43,000.000 289,00,000 19,000,000 1,038,000,000 1,039,000,000 346,000,000 344,000,000 26,000,00 46,000,000 910,000,000 313,000,000 21,000,000 188,000,000 269,000,000 260,000,000 300,000,000 192,000,000 272,000,000 London Silver Agreement Ratified By President Roosevelt—United States to Purchase 24,421,410 Ounces of Silver Annually From American Mines of Which 50% Is to Be Converted Into Coins—Price Indicated as 64M Cents Per Ounce As Compared With Market Price of 43 Cents. Under a proclamation issued Dec. 21 President Roosevelt ratified the silver agreement signed at London last July. In another item we give the text of the President's proclamation in which it is pointed out that under tho London agreement the total smount of silver to be absorbed by the producing countries is 35,000,000 ounces per annum during the four years commencing Jan. 1 1934; that such silver is to bo retained in each country, to be used for coinage purposes or as reserves for currency, or to otherwise be retained and kept off the world market, and that of the 35,000,000 ounces the United States is to absorb annually at least 24,421,410 ounces of the silver produced in the United States during the four-year period. In indicating that the United States mints will buy all silver hereafter mined in this country or its possessions at 643/i cents an ounce, or 21M cents above its present market leveLthe New York "Herald Tribune" account from Washington Dec. 21 added in part: At the rate of silver production in the United States for 1932, which amounted to 24.000.000 ounces, the annual cost would be $15,480,000. The President's plan calls for payment of the mine owners through the coinage of half their offered silver into dollars. The remaining half will bo collected as a seigniorage fee and retained as bullion in the Treasury. . . Volume 137 Financial Chronicle Price Explained at White House. Neither the President's statement Igiven below) nor his proclamation ex,6 cents an ounce. plains in so many figures that the price of silver will be 64) But this figure, deducible from the references in the proclamation, was announced orally by the White House secretariat. The present legal price of silver, which is the result of statuary provisions regarding the exchange value of silver to gold, is at present $1.29 an ounce, the White House explained. The United States mints will buy the silver at this price, but as a fee will deduct and retain 50% of the silver for coinage and delivery charges. Thus the real price an ounce works out to 643 cents. • • • The mints will coin half the silver into dollars to pay for the whole amount of ore turned in. The other half of the silver to be retained in the Treasury will be a bonus to the Government. The mints now buy silver for subsidiary coinage but they buy it at the market price. There has been no free coinage since 1873. Senator Pittman said the last fixed Government price for silver was during the World War, when silver was bought at $1 an ounce to replace $250,000,000 worth of silver melted up and sent to India. Lead of India Followed, The Pittman Act of 1918 to which the President referred in his proclamation provided for this war-time purchase of silver. To-day's proclamation directs the Treasury to make regulations setting up the purchase machinery which shall be similar to the regulations. pursuant to the Pittman Act. The mints will receive for coinage any silver which such mint, subject to regulations prescribed hereunder by the Secretary of the Treasury, is satisfied has been mined, subsequently to the date of this proclamation, from natural deposits in the United States or any place subject to the jurisdiction thereof. In carrying out the American share of the London agreements the President follows the lead of India, which recently effected its participation. The other signatory nations are now expected to follow suit without much difficulty. There were two practical, working agreements on silver signed in London by eight nations. The first agreement provided for the limitation of silver sales by the three silver-holding countries in return for the absorption of their own silver production by the treasuries of the five chief silver producing States. Gist of London Agreement. Thus India agreed over a period of four years beginning January 1 to sell no more than 35,000,000 ounces of silver a year; Spain agreed to sell no more than 5,000.000 ounces annually and China agreed not to sell any silver. The five producing countries agreed to absorb 35.000,000 ounces of silver among themselves. A supplementary agreement allocated the absorption of silver among the five producing countries. They agreed to take off the market annually the following amounts:• 7,159.108 ounces United States_ -.24,421.410 ounces. Mexico 1.095,325 ounces Australia Peru 652.355 ounces. Canada 1,671.802 ounces. In addition. all 66 countries represented at the London Conference agreed to a general declaration of policy forswearing the melting up or debasing of silver coins and the legislative depreciation of silver values and indorsing the replacement of lower valued silver currency with silver coins. Program to Last Four Years. The President's proclamation continues the new silver purchase program for the life of the international agreement or four years from January 1. In this country the present ratio of the silver to the gold dollar is theoretically about 16 to 1 under existing statutes. The law says the silver dollar shall contain 371.25 grains of silver while the gold dollar shall contain 23.2 grains of gold. The new domestic price for silver is expected to be a boon to the silver mines and to stimulate not only mining ventures but the production of mining machinery. Senator Pittman, however, insisted silver output here would not be very materially increased since 80% of American silver production is a by-product of copper, zinc and lead mining which continue more or less in the doldrums. Great Britain, France and Belgium, after the war,started debasing their silver coins and throwing the residue of silver on the markets of the world. This caused an oversupply. Then in 1928 the British government for India commenced to melt up its silver rupee coins that were in the Treasury and to dispose of the metal as bullion on the world's market. Over 500,000,000 ounces of silver have been dumped on the markets of the world from such sources since 1924. The Treasury of India was authorized to melt up quantities of silver COWS and sell them at any time and at any price. This sale of ander commenced in 1927. It not only created an oversupply but the maintenance of this policy with the threat that accompanied it and the large supply of silver still available for such purpose undermined confidence as to any stable value in the price of silver. The market price for bar silver on the day of the issuance of the President's proclamation (Dec. 21) was 43 cents per ounce. In the Washington account Dec. 21 to the New York "Times" it was stated that "the new Executive order is expected to satisfy the advocates of silver monetization, looked upon as one of the more powerful groups of inflation proponents." In the same account it was also noted: President Roosevelt cited as his authority the section of the Thomas Amendment, enacted at the last session of Congress, permitting him to fix the weight of the gold dollar, and of the silver dollar in proportion to the gold dollar. Below we give President Roosevelt's statement of Dec. 21: Under the clear authority granted to me by the last session of the Congress, I have to-day, by proclamation, proceeded to ratify the Treasury Department agreement with regard to silver, which has already been put into effect by the Government of India and which I understand other nations concerned are about to act on. This proclamation, in accordance with the Act of Congress, opens our mints to the coinage of standard silver dollars from silver hereafter produced in the United States or its possessions, subject to the depositors of such silver surrendering to the Government one-half of it as seigniorage and to cover all usual charges and expenses. The dollars coined from half of such newly-mined silver will be returned to the depositor. The half surrendered to the Government will be retained in the Treasury. It will be remembered that at the London Conference 66 Governments unanimously adopted the silver resolution proposed by our Government, providing in substance that these governments would refrain from the policy and practice of melting up and debasing silver coins, that they would replace low-valued paper money with silver coins, and that they would not enact legislation that would depreciate the value of silver in the world market. 4441 This resolution, however, was contingent upon an agreement between the governments of those countries producing large quantities of silver and the governments of those countries holding or using large quantities, looking to the elimination of an unnatural oversupply of silver on the markets of the world. This agreement, of course, was for the purpose of allowing demand and supply to govern the prices of silver by the limitation and neutralization of this oversupply derived from the melting up of silver CCADS. India has the power to dispose of, on the markets of the world, at any time, and at any price, hundreds of millions of ounces of silver. In fact, India had the power and capacity to dump silver derived from the melting up of Indian silver coins in an amount equal to the world's production from the mines for the period of two years. This power and the uncertainty attending its execution was destructive of the value and stability of silver throughout the world. China agreed, during the period of four years commencing Jan. 1 1934. and ending Jan. 1 1938,not to permit the sale of any silver derived from the debasing or melting up of silver coins. India greed to limit the sales ofsuch silver to a maximum of 35,000.000 ounces annually during such period. and Spain agreed not to sell in excess of 5,000,000 ounces of such silver annually during such period. After such sales, these governments are to be bound by the general resolution adpoted at the London Conference to which I have heretofore referred. As a condition of the agreement by China, India and Spain. however, it was required that Australia, Canada, Mexico, Peru and the United States should take silver from the production of their respective mines to the gross amount of 35.000,000 ounces annually for such period of four years. The United States, by reason of its large population, and its large silver production, agreed to take from its mines annually at least 24,421,410 ounces of silver during such period. The production of the United States for 1932 was approximately 24,000,000 ounces of silver. London Silver Agreement Ratified by President Roosevelt—Text of Proclamation, Whereby United States Is to Purchase 24,421,410 Ounces of Silver Annually from American Mines. Detailed reference is made elsewhere in these columns today to the issuance of a proclamation by President Roosevelt on Dec. 21 ratifying the London Silver Agreement. We give herewith the text of the President's proclamation: By the President of the United States of America. A PROCLAMATION. Whereas,by Paragraph (2)of Section 43,Title III,ofthe Act of Congress. approved May 12 1933 (Public No. 10). the President is authorized "by proclamation to fix the weight of the gold dollar in grains nine-tenths fine and also to fix the weight of the silver dollar in grains nine-tenths fine at a definite fixed ratio in relation to the gold dollar at such amounts as he finds necessary from his investigation to stabilize domestic prices or to protect the foreign commerce against the adverse effect of depreciated foreign currencies, and to provide for the unlimited coinage of such gold and silver at the ratio so fixed; and Whereas, from investigations made by me, I find it necessary, in aid of the stabilization of domestic prices and in accordance with the policy and program authorized by Congress, which are now being administered, and to protect our foreign commerce against the adverse effect of depreciated foreign currencies, that the price of silver be enhanced and stabilized; and Whereas, a resolution presented by the delegation of the United States of America was unanimously adopted at the World Economic and Monetary Conference in London on July 20 1933, by the representatives of 66 Governments, which in substance provided that said governments will abandon the Policy and practice of melting up or debasing silver coins; that low-valued silver currency be replaced with silver coins and that no legislation should be enacted that will depreciate the value of silver; and Whereas, a separate and supplemental agreement was entered into, at the instance of the representatives of the United States. between China, India and Spain,the holders and users oflarge quantities ofsilver,on the one hand, and Australia, Canada, Mexico, Peru and the United States on the other hand, as the chief producers of silver, wherein China agreed not to dispose of any silver derived from the melting up or debasement of silver coins, and India agreed not to dispose of over 35.000,000 ounces of silver per annum during a period ot four years commencing Jan. 1 1934 and Spain agreed not to dispose of over 5.000,000 ounces of silver annually during said Period, and both of said governments agreed that at the end of said period of four years they would then subject themselves to the general resolution adopted at the London conference, and in consideration of such limitation it was agreed that the governments of the five producing countries would each absorb from the mines in their respective countries a certain amount of silver, the total amount to be absorbed by said producing countries being 35,000,000 ounces per annum during the four years commencing the first day of January, 1934;that such silver so absorbed would be retained in each of said respective countries for said period of four years, to be used for coinage purposes or as reserves for currency, or to otherwise be retained and kept off the world market during such period of time, it being understood that of the 35,000,000 ounces the United States was to absorb annually at least 24,421,410 ounces of the silver produced in the United States during such period of time. Now, therefore, finding it proper to co-operate with other Governments and necessary to assist in increasing and stabilizing domestic prices, to augment the purchasing power of peoples in silver-using countries,to protect our foreign commerce against the adverse effect of depreciated foreign currencies, and to carry out the understanding between the 66 Governments that adopted the resolution heretnbefore referred to; by virtue of the power in me vested by the act of Congress above cited, the other legislation designated for national recovery,and by virtue of all other authority in me vested; I, Franklin D. Roosevelt. President of the United States of America, do proclaim and direct that each United States coinage mint shall receive for coinage into standard silver dollars any silver which such mint, subject to regulations prescribed hereunder by the Secretary of the Treasury, is satisfied has been mined, subsequently to the date of this proclamation, from natural deposits in the United States or any place subject to the jurisdiction thereof. The Director of the Mint, with the voluntary consent of the owner,shall deduct and retain of such silver so received 50% as seigniorage and for services performed by the Government of the United States relative to the coinage and delivery of silver dollars. The balance of such silver so received, that is, 50% thereof, shall be coined into standard silver dollars and the same, or an equal number of other standard silver dollars, shall be delivered to the owner or depositor of such silver. The 50% of such silver so deducted shall be retained as bullion by the Treasury and shall not be disposed of prior to the thirty-first day of December 1937,except for coining Into United States coins. 4442 Financial Chronicle Secretary of Treasury to Prescribe Regulations. The Secretary of the Treasury is authorized to prescribe regulations to carry out the purposes of this proclamation. Such regulations shall contain provisions substantially similar to the provisions contained in the regulations made pursuant to the act of Congress, approved Apr. 23 1918 (40 Statutes at large. page 535),known as the Pittman Act, with such changes as he shall determine prescribing how silver mined, subsequently to the date of this proclamation from natural deposits in the United States or any place subject to the jurisdiction thereof, shall be identified. This proclamation shall remain in force and effect until the thirty-first day of December,1937, unless repealed or modified by act of Congress or by subsequent proclamation. The present ratio in weight and fineness of the silver dollar to the gold dollar shall, for the purposes of this proclamation, be maintained until changed by further order or proclamation. Notice is hereby given that I reserve the right by virtue of the authority vested in me to revoke or modify this proclamation as the interest of the United States may seem to require. In witness whereof I have hereunto set my hand and caused the seal of the United States to be affixed. Done at the city of Washington this 21st day of December, in the year of our Lord nineteen hundred and thirty-three, and of the independence of the United States of America the one hundred and fifty-eighth. FRANKLIN D. ROOSEVELT. By the President: William Phillips, Acting Secretary of State. Dec. 23 1933 "The action of the United States will be followed by Canada, Australia. Mexico and Peru, which constitute the great silver-producing countries of the world," the Nevadan said. "This action undoubtedly will stabilize the price of silver throughout the world at 643i cents an ounce until some further action is taken to raise it to a higher price. words, the silver producer will sell to the Government 1.56 ounces of silver for a dollar. This establishes the price of 64;i cents an ounce. The free coinage of silver on terms that will yield producers about 64,14 cents an ounce is in a ratio of 53 to 1 to the current price of $34.06 an ounce paid by the RFC for newly-mined gold. This is a far cry from the ratio of 16 to 1 made famous by William Jennings Bryan in 1896, and kept alive from time to time by the faithful little group of silver Senators. The 16 to 1 battle cry of the free-silverites meant simply a fixed ratio for silver at 1-16th the value of gold. Under such a ratio, silver producers could carry their metal to the mint and receive for every 16 ounces the value of one ounce of gold. On the basis of the current RFC gold price of $34.06, a 16-to-1 ratio would mean a price of about $2.13 an ounce for silver, or far above the prevailing market price of 43 cents. Since Bryan's day, silver advocates have often proposed a much higher ratio for silver to gold, but as recently as last April, Senator Burton K. Wheeler or Montana introduced a bill to remonetize silver at the classic rate of 16 to 1, which secured such support that it was credited with forcing the Government to suspend the gold standard. Upon the establishment of the mint in 1792, the Government authorized the coining of standard silver dollars. However, between 1805 and 1836, coinage ceased because the price of silver was greater than the value of silver In the standard silver dollar. In 1837, the present standard silver dollar of 41234 grains was established and its coinage authorized. In 1878, the further coinage of the standard silver dollar was authorized. but a change was made in its legal tender character. By an act then it was made legal tender, "except where otherwise expressly stipulated in the contract." Under this act the first issue of silver certificates was made, which provided for the deposit of standard silver dollars in the Treasury and the issue in lieu thereof of silver certificates. At the present time there are outstanding silver certificates of about $490,000,000 secured by almost 500,000,000 standard silver dollars. Under the Pittman Act of April 23 1918, about 260,000,000 standard silver dollars were melted down and the 200,000,000 ounces of silver they contained were sold to the Government of India at $1 an ounce, plus a charge to cover the cost of melting and other incidentals in connection therewith. In May 1920, when the price of silver dropped to $1 an ounce, the Government started reacquiring the silver sold to India. This was completed In June 1923. The recoinage of the silver dollars melted was completed in April 1928. The currency situation is now the same as before the passage of the Pittman Act, so far as operations under this act are concerned. The monetary stock of United States silver dollars was neither decreased nor increased by that act. Increased Buying Power. "This price will increase the exchange value of the money of China, India, Mexico and South American countries 60% in relation to our currency. It will Increase the buying power in the United States 50%. There is no doubt it will enormously increase our export trade to those countries on a silver currency. This, of course, will tend greatly to hasten our recovery and will hasten the return to normal conditions. "Locally it will greatly relieve the mining situation and will bring happiness to millions depending on mining." Senator Pittman described the new move as the most constructive in the monetary situation yet made by the President. Steps Taken by Committee Named by 11 Governors Toward Establishing Silver as Basic Money Metal. Definite steps toward establishing silver as a basic money metal and stabilized at a reasonable price were taken at Carson City, Nev., on Dec. 11 with the announcement of an organized drive toward that end. This was indicated in a Carson City dispatch to the New York "Journal of Commerce," which further said: Senator Pittman Expects Administrations New Silver Policy to Result in Increased Export Trade. President Roosevelt's decision to buy and coin silver will greatly increase our exports to the Orient and other countries with a silver coinage, and prove a powerful stimulus to recovery, according to Senator Pittman, author of the silver resolution adopted at the World Economic Conference in a despatch from Washington Dec. 21, the Senator was further quoted as saying: Views of Representative Smith and Senator King Anent President Roosevelt's New Silver Policy. Prom Associated Press advices from Washington Dec. 21, we quote as follows: Representative Smith of Washington said that as "a member of the delegation which urged the President to do something about silver, I am particularly elated and am confident his action will be approved by th nation." "The restoration of silver," he added, "means that the purchasing powers of the Asiatic, South American countries and Australia for the lumber and products of our Pacific Northwest will be greatly increased." Senator Borah withheld comment pending study of to-day's action. Senator King, while praising,Mr. Roosevelt's move, held that it did not go far enough; he again urged free coinage of silver. "The President's plan undoubtedly will be helpful to silver producers and likewise add to our currency," he said. "It is a step in the right direction, but it does not go as far as I should like. It still treats silver in part at least as a commodity. I believe that the Democratic pledge to rehabilitate silver means its restoration to the position of basic money, the same as gold. "Personally I had hoped the President would exercise the authority conferred In the amendment offered by Senator Wheeler and myself to the socalled Thomas amendment which authorizes the President to fix the ratio of silver to gold and open the mints of the country to the free coinage of silver." Silver Pact Scope Held Exceeded by President Roosevelt's Proclamation—Monetary Expert Sees Confusion in Free Coinage Part of Order. From the New York "Times" of Dec. 22 we take the following: As analyzed last night by a leading monetary expert who has made a study of the silver question, the President's Proclamation goes far beyond the scope of the London agreement. The President'a announcement, this expert said, falls into two parts; first, the ratification of the London agreement itself; second, provision for the free coinage of domesticallymined silver produced from now on. The implications of this second part, it was stated, are confusing. Since the United States produces currently anly obout one-sixth of the world's annual output the effect of the silver purchases upon the world price of silver are likely to be nolgreater than have been the effects of the RFO's purchase of newly-mined gold upon the world gold price. The question at once arises, this authority said, whether the present announcement may not be a forerunner to purchases by the United States Government of silver produced abroad. He suggested that the immediate market response to the Proclamation was likely to strengthen the general price level, but expressed doubt that any advance would hold aft3r the workings of the plan in operation had been seen, unless it were followed by authorization for purchases of silver abroad. Unlike the gold buying plan, the silver program will actually cost the Government nothing. For every 1.56 ounces of silver, which is sufficient to coin two silver dollars, the Government will actually Issue only one silver dollar, which will be issued to the seller of the silver. In other The "silver committee," headed by George W. Malone, which was appointed by the Governors of eleven Western States, will begin a campaign to settle the silver question. The ground work was laid at the recent annual conference of Western Governors at Boise, which at that time went 011 record for definite, immediate and co-ordinate action. Pet schemes of political officeholders will have no place in the picture, Mr. Malone declared. It was said that this is the first time in history of the white metal that so many States have attempted an organized effort in behalf of silver. In announcing the formation of the committee Mr. Malone said that "we are going to bat on two principles. We are going to see that silver must and will be stabilized at a reasonable figure. If this is done, it will be the longest step toward ending the depression in the Western States that has yet been taken. "We don't care how the Government goes about making silver a basic metal or how the price is stabilized. "The committee is not wedded to any particular plan. Its business is to assist the national representatives in co-ordinating their efforts to the end that some feasible plan will be adopted by the President by Executive Order or by Congress during the coming session." Mr. Malone said that the committee members already appointed include A. M.Barton of California, A. L. Moore of Arizona, E. Hayes of Colorado and Osborne 0. Wood of New Mexico, Mr. Malone is the respresentative from Nevada. Ruling by British House of Lords on Gold Clause Final—Belgian Utility Cannot Appeal Decision. A London cablegram to the New York "Times" reports the issuance of a statement on Dec. 18 by a committee of bondholders acting in behalf of holders of the 51/2% sterling bonds of the Societe Intercommunale Beige d'Electricite suggesting that the Belgian company has accepted as final Friday's unanimous judgment of the House of Lords upholding the gold clause and the bondholders' contention that this company's bonds and the coupons attached are payable on a gold basis. The cablegram went on to say: "It is anticipated," says the statement, "that the Belgian company or its London bankers, M. Samuel & Co., Ltd., will issue a notice to bondholders as to how they may obtain payment of the interest due on past and future coupons." In the report, Friday [Dec. 151, of the Lords' judgment it was said that the company had the right of appeal to the Judicial Committee of the Privy Council. Further examination of the position has shown that such a right does not apply in this case, and the Lords is therefore the highest tribunal In Great Britain before which the case can be argued. According to one legal authority, the Belgian company might try to raise the matter before the World Court at The Hague, but this would require the consent of both parties and the bondholders are unlikely to agree. It is argued, therefore, that the sanctity of the gold clause has been established once and for all in English law. The case is held to have special relevance to the German Young Plan loan, the last two coupons of which were paid by the German Government in Volume 137 Financial Chronicle paper money on the ground that such payment conformed with "English practice in similar cases." It also has some relevance to the Egyptian Government loans, the gold clause of which the Egyptian Government is seeking to set aside. Financial opinion regards the judgment as one of the most important legal decisions of recent times. "The judgment," says the "Financial News," "is outstanding as the most important step taken recently in defense of the requirements of a legal contract as against those of financial convenience." An item bearing on the action of the House of Lords in upholding the gold clause appeared in our issue of Dec. 16, page 4287. In addition to that item, we quote the following from London, Dec. 15, to the New .York "Times": The House of Lords, in its high legal capacity, upheld in a test case to-day the disputed "gold clause" in an agreement affecting British holders of certain Belgian bonds. As a result the British holders will receive capital and interest in gold pounds, not in paper pounds which are depreciated in terms of Belgian currency. The decision is likely to have considerable psychological effect in the United States where in certain cases the gold clause was abrogated after abandonment of the gold standard, but it does not affect the United States legally. The decision by the Lords is not a parliamentary act and the defendant in this case, the Societe Intercotnmunale Beige d'Electricite still has the right to appeal to the Judicial Committee of the Privy Council, the Supreme Court of the British Empire. Lower Courts Reversed. What matters chiefly at the moment is that the Lords have in this case upset the ruling of the lower courts, including the one immediately beneath it—the Court of Appeal—and this court is bound to be influenced by the Lords' decision when hearing the large number of similar actions that are certain to follow it. The verdict upholding the gold clause was warmly welcomed in London because of its probable effect in fortifying respect for contract generally. The Societe Intercommunale Beige d'Electricite issued in England in September 1928, £500,000 of 35-year sinking fund 51,4% gold bonds, and the bonds provided for the payment of interest in sterling "in gold coin of the United Kingdom of or equal to the standard of weight and fineness existing on Sept. 1 1928." Following the depreciation of sterling in terms of gold the company continued to pay the half-yearly coupons in depreciated pounds. On each occasion the 536% bondholders received £2 15s. per £100 bond instead of the much larger sum (estimated at about £8) that would have been payable if the gold clause had been in force. One bondholder, supported, it is understood, by a large British insurance company, tailed to get satisfaction in the lower courts and pressed the appeal before the Lords. He argued that the company was "bound to pay such sum in sterling as would be sufficient to purchase in the market on the day of payment gold of not less weight and fineness than that contained in gold coin which would have sufficed to discharge such payment if falling due on Sept. 1 1928." He further argued that "the original intention of the contract was to prevent the loss from falling upon the bondholder should sterling become depreciated." This view the Lords accepted. Clause Held a Safeguard. The company contended that by paying the required sum in legal tender— in paper pounds—it had discharged its obligation, and this view had been upheld by the High Court and the Court of Appeal. The law Lords, however, in reversing this decision to-day, acted mainly on the contention that the so-called gold clause could have no meaning unless it was intended to guard against depreciation of the currency—in this case sterling—in which the debt was payable. Lately the Societe's bonds have stood at about 105, but it is estimated their value under the new situation Is about 150. The London "Times" says editorially: r "At present, when default is stalking naked and unashamed throughout the world. It is of the utmost importance that debtors should at least acknowledge their rightful obligations, for It Is only on this basis that the delicate though adjusting debts to capacity for payment can be undertaken. necessary task of "Once a debt Is duly acknowledged, equitable measures necessary redress accidental hardships brought about by changes in the world's price level to can safely be devised, but unless the sanctity of contracts is first upheld all contractual obligations must Inevitably lose their meaning and that is a state of things no sane person would be willing to contemplate." The "Financial News" declares: "I is a gold clause of the American brand which has been upheld the Lords. And merICa which has been somewhat cock-a-hoop because it widelyby that est British Court had negatived it must now pay at least equalbelieved rth attention to t that lt has been upheld." t Norman Angell, British Economist, Urges Ne Gold Ratio—Suggests Return to Standard with Higher Value for Dollar—Skeptical as to America's Self Sufficiency. Recognizing a need for monetary stabilization, Sir Norman Angell, British economist, in an interview at the Hotel Commodore,in New York City, on Dec. 15, suggested a return to a gold standard of a new ratio. In the New York "Times" he is quoted as saying: The -line of least resistance is to go back to gold but at a different ratio. English authorities are disposed to think that the dollar is undervalued in terms of sterling. Most British authorities would fix the natural ratio somewhere in the region of $4. On this side people seem to be thinking more in terms even of a $6 pound. I heard some authorities talk of a $7 and $8 pound. It seems quite an artificial and unworkable ratio, only justifiable if foreign trade is a matter of life and death to America. The "Times" account continued: Sir Norman said he had been told that America was going to become "a self-sufficient country." If such were the case, he said, there would be no reason for demanding a cheap dollar, since debts would be paid to this country with that sort of currency. Doubts Self-Sufficiency. "I am a little skeptical as to America's self-sufficiency," he said. "While It may be theoretically possible, it could be made feasible only by a very high degree of State control, which means State socialism. Secondly, the chance presented like that of trade with Russia immediately would be seized. 4443 "To say you are going to be self-sufficient and develop considerable trade with Russia is just contradiction. "At some point you will have to stabilize by agreement- I don't say it necessarily should be done immediately. There may be a reason which makes it wise to wait. The load of internal indebtedness must be reduced by either or both vast liquidation or inflation. I think both in a degree will have to be employed. "The obstacle to stabilization of the currency externally now is that it might constitute an obstacle to using the monetary instrument internally for creating a new satisfactory equilibrium internally. We don't know, as a matter of fact, how far the process of either liquidation or price-raising have got to go." Sees Sift718 of Recovery Efere. Sir Norman noted evidence of economic recovery here, although "irregular signs." In England, he said, recovery also was irregularly taking place, "but we've been tackling this for years in the application of all principles, new and old, ever applied to depression." "We have had a period of being off gold which allowed a devalued pound to operate and the banking situation did not get out of hand. I don't think banking was the main trouble here. One of the main differences in the situation is that so much American industry is dependent on an overspending population, or, shall we say, spending up to the hilt. When pessimism comes and people have contracts a whole group of industries find they are in 'Queer Street.' The tendency of Europeans is to keep a shot in the locker." Commenting on the National Recovery Administration Sir Norman said: "America is doing by a great spurt of effort what Great Britain has done in her own way for over 20 years." He said industrial codes had been established in England by "slow bargaining with highly organized labor." Sir Norman said he did not wish to appear critical, and he thought it was "a wonderful way in which America has tackled her problems," and that "an American faces a crisis with greater courage than a European does." He has been lecturing here for the past month, accompanied by his niece, Miss Barbara Hayes. They will sail next week. Charles Rist, Former Vice-Governor of Bank of France Fears "Chaos" if All Nations Drop Gold—Troubles Since War Laid by French Economist to Errors in Re-establishing Standard—"Managed" Currency Hit. The monetary difficulties of the post-war period were not due to any intrinsic imperfection in gold as a standard, but rather to the mistakes that were made in re-establishing the gold standard after the war, according to Charles Rist, a leading French economist associated with the Bank of France, who discusses "Gold and the End of the Depression" in the current issue of "Foreign Affairs." Noting this, the New York "Times" of Dec. 14 further commented: Professor Rist asserts that the trouble came from the mistake of trying to tie to gold a scale of prices that had been artificially raised too far by inflation. He considers that this mistake grew out of the illusion that American prices, which had risen 50% between 1915 and 1925, were, in fact, gold prices. Actually, he contends, they were merely dollar prices, the high scale being determined by the twin circumstances that paper lames had doubled American currency circulation, and that, as a result of the war, the production of commodities and all sorts of transportation had fallen off tremendously the world over. This illusion with respect to American prices was reinforced by the fact that down to 1925 the whole of the mine production of gold was concentrated in the United States because of the refusal of European banks of issue to buy gold at the market price. On this account the United States was able to maintain the gold convertibility of the dollar in spite of the increase in currency circulation and bank deposits. Illusion Fatal to Reconstruction.. The illusion was fatal to world monetary reconstruction because it encouraged countries which wanted to return to the gold standard to tie their own price levels to an artificially high level which could be maintained only if the exceptional circumstances which underlay it continued. "The moment production and exchange began to expand again," M. Rist continues, "the moment competition which had been in abeyance during the war began to function again, a drop was inevitable. It was all the more breath-taking the higher the new prices had been pegged. A first warning of trouble ahead came in the American crisis of 1920, which caused a drop of 63% in prices. Protected by her inflation, Europe received only an attenuated counter-shock from that episode. But beginning with 1925, immediately after the return of Great Britain to pre-war parity with several other countries, gold prices all over the world began to drop. It was the same thing that had happened in 1873 when the large European countries (and the United States) followed Germany's lead in adopting the gold standard and abandoning silver coinage." Alternative Policy Preferable. Professor Rist speculates upon what would have happened if the United States had decided to devaluate its currency as early as 1922 or if the banks of issue in Europe had resolved to buy gold at market prices at that time, forsaking the fantastic idea of going back to old monetary parities and beginning then and there to build up their gold reserves, instead of allowing them to trickle away to no purpose to the United States. He suggests that in such circumstances the inevitable drop in prices which had to follow the world's return to normal production would not have been so violent a shock. As regards price levels, he says we should probably be where we are to-day, hut the disasters we have experienced in getting there would have been avoided. Conceding that the gold standard is far from perfect, Professor fist nevertheless declares it to be the best standard available at the moment, and urges a return to it. He sees little merit in the alternative of a "managed" Currency. The main difficulty with a managed currency that comes immediately to mind, he says, is that the general price level does not depend altogether upon the quantity of currency and the rapidity of its circulation. It depends also upon the amount of goods and services that are offered on the market. History offers plenty of examples, he remarks, of periods in which increases in currency, no matter how large, have proved entirely unable to influence general price levels. A further objection Is that any system of managed currency has necessarily to be strictly national. 4444 Financial Chronicle Australian Gold Output Increases—Production for Nine Months to Sept. 30 Estimated at 715,177 Fine Ounce-710,420 for 12 Months of 1932. From the "Wall Street Journal" of Dec. 13 we take the following from Melbourne (by mail): In the nine months ended Sept. 30 gold production in Australia exceeded that of the previous full year. In the three main producing States, output to the end of September had reached 697,595 fine ounces, compared with a total Australian yield in 1932 of 710,420 fine ounces. The returns of the other three States for the nine months of the current year are not yet available, but adding their production to June 30 the yield incompletely disclosed to Sept. 30 is 715,177 fine ounces, the position being shown as follows: Total * Six months only. 9 Months Fine Ounces. 12 Months. Fine Ounces. 588,578 45,015 64,002 *12.709 *2,045 *2,838 605,555 47,745 20.228 27.941 3,014 5,937 715,177 710.420 In recent months Queensland has become the second highest gold producing State in the Commonwealth, due mainly to regular production by Mount Morgan and Mount Coolon. In West Australia, improved technique and more extended enterprise attracted by the high price of gold have caused a substantial increase of production, and the yield of 588,578 ounces to Sept. 30 has been valued at £3,500,000 sterling. In other States, notably Victoria and South Australia, there is a marked increase of activity encouraged by more efficient mechanical processes, lower working costs in extraction, and the greatly enhanced price of gold. In the three months ended Sept. 30 overseas trade yielded a favorable commodity balance of £3,510,000 sterling, or with bullion and specie added, £5,172,000 sterling. Imports for the period were valued in sterling at £14,398,021, a reduction of about £1,000,000 from last year's figures; and exports, at £19,570,010, were £4,375,461 higher than those of July/ September 1932. Great Britain's Revenue Rises with Increase in Tariff. From the New York "Times" we take the following from London, Dec. 8: Great Britain's new tariffs increased the nation's revenue by £25,000,000 in the year ended March 31, according to the report of the Commissioners of Customs and Excise, issued to-day. The total revenue was £287,756,388, compared with £255,220,157 in 1931-32, when the tariff was in operation only one month. The report reveals that 4,177 persons were convicted of smuggling during the year, and that £15,017 in penalties was paid. Note from France to United States Incident to Failure to Meet Dec. 15 Payment on War Debt—Cites Lausanne Accord and Hoover Moratorium—Reply by United States. In an item published in our issue of Dec. 16, page 4268, we referred to the Dec. 15 payments to the United States on war debts and indicated that France was among the five nations which defaulted. The failure of France to pay the instalment of $22,200,927 due was the subject of a communication forwarded by Ambassador Andre de Laboulaye to Acting Secretary of State Phillips, received at the State Department on Dec. 15. It was observed in a Washington dispatch on that date to the New York "Times" that th3 note alluded to the Lausanne agreemant and the Hoover moratorium as "decisions taken on both sides in 1931 and 1932" toward world economic recovery. From the same account we also quote: In a formal communication, Mr. Phillips acknowledged receipt of the French note, but refrained from comment. Note from French Envoy. The note from the Ambassador follows: Washington, Dec. 15 1933. Mr. Secretary of State: I have the honor to acknowledge the receipt of your letter of Nov. 28 last, and in reply to transmit herewith the following communication from my Government: "Inasmuch as no new factor has developed with respect to war debts since the resolution voted by the Chamber of Deputies on Dec. 13 1932, the French Government regrets that it is not in a position usefully to initiate a new debate on the question, and is obliged to postpone the payments due Dec. 15 next. "Nevertheless, In order to remove any possibility of misunderstanding It desires to recall the tenor of this resolution. "The French Government has never contemplated the unilateral violation of undertakings freely entered into, which would have been contrary to the invariable traditions of Prance. But It judged that the decisions which were taken on both sides in 1931 and 1932 in the hopes of facilitating the economic recovery of the world had modified conditions which formerly existed, and now justify new arrangements which take into account the changes thus brought about. "The French Government cannot, of course, fail to recognize the difficulties which the achievement of such a new arrangement would involve. Nevertheless, it hopes that such difficulties may be overcome and that in the near future a solution of the problem of war debts acceptable to both countries may be anticipated. For its part it will consider it a duty not to neglect any of the possibilities which may arise in order to attain this end." DEPARTMENT OF STATE. Washington. D. C., Dec. 15 1933. Excellency: In acknowledging the receipt of your communication of Dec. 15 1933. I take note of the statement that the Government of France will not be able to effect the payment falling due Dec. 15 1933, on account of the Indebtedness of France to the United States. Accept, Excellency, the renewed assurances of my highest consideration. WILLIAM PHILLIPS, Acting Secretary of State. His Excellency, Andre:de Labonlaye. Ambassador of the French Republic. 1932. West Australia Victoria Queensland New South Wales South Australia Tasmania Dec. 23 1933 Acting Secretary-of State Phillips Acknowledges Note. Mr. Phillips's reply follows: Accept, &c., ANDRE DE LABOULAYE. Hungary Not Pressed for Payment of Debt to United States. From a Washington account Dec. 15 to the New York "Times" we take the following: Nicholas de Vegh, Hungarian Charge d'Affaires, notified the Department that Hungary would deposit to the foreign creditors' account at the Hungarian National Bank a Hungarian Treasury Certificate in the pengo equivalent of $114,260, the certificate to bear 2% interest. Hungary is in a special category and is not being pressed for repayment of her debt, which was granted for her financial rehabilitation a few years ago. Doubts that the Government would accept the Latvian payment of $8,500 on an instalment of $180,706 were dispelled at the State Department, which coincidentally announced its acceptance after a note had been received from Arthur B. Lule, in charge of the Latvian Legation. He expressed regret that the financial situation of his country precluded payment of a larger sum. Germany Again Cuts Transfer Interest on Debts—Payments to Be Reduced from 50 to 30% for Next Six Months—Dr. Schacht Justifies Act—New York Bankers Discuss Step. Disregarding protests of Germany's foreign creditors, Dr. Hjalmar Schacht, President of the Reichsbank, announced on Dec. 18 that during the next six months Germany would further reduce interest payments on her foreign indebtedness as follows: Transfer interest payments on Germany's long- and medium-term debts will be cut to 30% against 50% paid under the transfer moratorium during the last six months. The balance of 70% will be paid in scrip redeemable at half its value. A wireless message from Berlin to the New York "Times," from which the foregoing is taken, continued: This means that German 7% bonds henceforth will pay only 4.55% and German 6% bonds only 3.90%. The rest of the moratorium provisions remain unchanged. That is to say, both interest and amortization charges will be paid in full on the Dawes loan but only interest charges will be paid on the Young loan as heretofore. Exempt from Changes. Short-term credits included in the standstill agreement are exempt from moratorium regulations. Amortization charges on the remaining debts will not be transferred, nor will scrip be issued for them. They will be paid into a fund for the utilization of which regulations will be issued later. Announcement of the new terms of the transfer moratorium was made by Dr. Schacht in a seven-page communique which undertakes to justify the new cuts against the contrary views that creditors' representatives expressed in no uncertain terms at the recent moratorium conference in Berlin. The issuance of the communique was preceded by a two-hour session of the Central Committee of the Reichsbank, which, the communique says, "unanimously approved the declaration of the Reichsbank." The Reichsbank, says the communique, was forced to take this action on its own responsibility, not because it disagreed with the creditors' representatives but bemuse the latter came "without authority to make binding declarations." It tells the creditors that they were wrong last June when they insisted that Germany could pay in full, and it states that they are wrong again when they insist that Germany now can continue to pay 50% In cash. "I have a full understanding of the displeasure of creditors over the reduced transfer possibilities," Dr. Schacht says, "and I am not at all pleased to have to say unwelcome truths. But unless such truths are recognized and acted on by the world, the transfer problem will remain unsolved for a long time." This, in Dr. Schacht's view, confirms the necessity for a change in international debt and trade relations, and he assures the world that the Reichsbank is working for free international exchange payments without artificial restrictions or currency control. Submits Reich Figures. To justify the new reductions, Dr. Schacht submitted the following figures based on the latest returns: Germany's total foreign debt service obligations amounted to 1,497,000,000 marks yearly. Of that sum 520,000,000 marks was to be raised from invisible exports and 977,000,000 from the export trade surplus. This meant that the monthly export trade surplus would have to be 81,000,000 marks, but depreciation of the dollar and other currencies had reduced this to 74,000,000 marks monthly. A 50% transfer would require, therefore, only 37,000,000 marks monthly. The German export trade surplus from July to November, Inclusive, amounted to 65,000,000 marks monthly. That figure should, therefore, theoretically permit a continuance of the 60% cash payment and leave enough for other requirements and the replenishment of Germany's gold supply. But, said Dr. Schacht, this trade balance was. illusory. He revealed that no less than 200,000,000 marks of an export surplus of 327,000,000 marks for the last five months had been paid, not in foreign exchange, but in blocked marks, scrip or depreciated German bonds. The total income in foreign exchange was, therefore, only 127,000,000 marks for the period, or 25,000,000 marks monthly. And even this amount, he explained, would be reduced by exports of German emigres, who in this Volume 137 Financial Chronicle fashion got their capital out of the country and, therefore, returned nothing to Germany. An item that Dr. Schacht did not mention but which undoubtedly also played a big part is the drop in Germany's invisible exports owing, for instance, to the boycott against German shipping. The assumption that the Germans are using foreign exchange to buy back their depreciated bonds Dr. Schacht declared to be in "complete error." The only bond purchases, he asserted, had been made for the promotion of "additional exports," and he expressed determination to push such exports as much as possible. He admitted depreciation of creditor currencies had reduced Germany's foreign indebtedness 4,000,000,000 marks and her annual debt service load between 200,000,000 and 250,000,000 marks, but this gain, he added, was far surpassed by the loss that Germany had suffered through "valuta dumping by England, Scandinavia, Japan and America." From the "Times" of Dec. 19 we also quote: Bankers Discuss Decision. Representatives of American houses of issue which sponsored German dollar bonds met here yesterday at the Federal Reserve Bank to discuss the decision of the Central Committee of the Reichsbank. . . . All German bonds are covered by the moratorium with the exception of the Dawes Plan 7s and the Young Plan 5%s, on which the debt service is being maintained. Other issues—State, municipal and corporation—are in default. . . . American banks which are creditors of Germany under the standstill agreement interpreted the announcement of Dr. Schacht as a gloomy forecast of what they may expect to meet next January when their representatives, together with those of standstill creditors in other countries, meet in Berlin for the renewal of the standstill agreement. The standstill creditors, while not involved in the latest measure of the Reichsbank, expect determined efforts on the part of Dr. Schacht to exact interest reductions and other concessions. According to the latest available official figures the total amount of standstill credits outstanding is 8,617,000,000 marks, equal at par to $861,569,400, of which 3,268,000,000 marks, or $778,437,600, is in use. Of these amounts the stake of the United States is 1,520,000,000 marks, or $362,064,000, of outstanding credits, of which 1,388,000,000 marks, or $330,621,600, is being used. Meeting to Consider German Decision on Next Year's L Transfer Interest Payments to Be Held in New York on Dec. 27 by American Houses Which Have Issued *German Bonds—Opposed to Proposed Reduction in Foreign Exchange Transfers. Ray Morris, of Brown Brothers Harriman & Co., stated on Dec. 19, in behalf of the American houses which have issued German bonds, that a meeting of the American houses had been called for Dec. 27 to consider with John Foster Dulles the decision of the German authorities to transfer in foreign exchange only 30% of the interest payments due during the first six months of next year on German bonds, the remaining 70% to be paid in the form of Reichsmark scrip certificates. Mr. Dulles, as the• representative of the American issue houses, attended the recent long-term debt conference with th Reichsbank, in Berlin. The conference disbanded before the decision of the German authorities was announced, and Mr. Dulles is now on the water on his way back. The transfers being made on account of interest due on German bonds for the period from July 1 to Dec. 31 1933 is 50% in foreign exchange and 50% in Reichsmark scrip. Mr. Morris points out that all the representatives from the various countries who attended the conference in Berlin were unanimous in their view that Germany was unjustified in reducing the foreign exchange to be transferred in respect of interest due during the first six months of 1934 below the percentage being transferred in respect of the last six months of 1933, and that all the representatives had vigorously opposed any such reduction. British'Government Views Unfavorably Dr. Schacht's Statement Regarding Foreign Payments on German Bonds. On Dec. 19, Associated Press advices from London stated: Action Displeases London. Official circles said to-day the British Government was greatly displeased at what was described as "the unilateral action" of Hjalmar Schacht, President of the German Reichsbank, regarding foreign payments on German bonds. Dr. Schacht announced in Berlin yesterday that the continued "dumping" of foreign currencies made it impossible for the Reichsbank to maintain its present transfer quota of 50%, and that therefore the Reichsbank's Central Committee was forced to cut to 30% the debt payment on maturing interest and dividend amounts paid into the conversion fund. The Reichsbank made two exceptions: The interest and amortization on / 0 Young loan are to be the 7% Dawes loan and the interest on the 5%0 transferred in full. Although official circles noted that the Reichshenk action appeared to be primarily a matter of concern to the bondholders, it was intimated that some official Government action might be token later, although no decision on that subject has yet been made. German Debt Conversion Office Files with Federal Trade Commission Under Securities Act Registration Statement Covering Scrip Issue. The Federal Trade Commission announced on Dec. 16 the filing for registration under the Securities Act of a statement by the Conversion Office for Foreign German Debts 4445 (Konversionskasse fur deutsche Auslandsschulden) of Berlin, Germany, covering certificates of indebtedness or "scrip" of the corporation amounting to 45,000,000 reachsmarks. The Commission's announcement says: According to the statement filed by the Corporation, the scrip to be registered will be issued in lieu of approximately $13,500,000 face amount of interest payments on instruments of indebtedness publicly distributed in America and 5,000,000 reichsmarks (estimated) of other payments required by the law of June 9 1933 to be made into the Konversionskasse. This Corporation is authorized to receive from German debtors with foreign creditors payment of the reichsmark equivalent of the interest payments and certain other classes of payments which they are obligated to make. It will transmit to the paying agents (or where no paying agents are involved, directly to the creditors) funds in foreign exchange for the payment of 50% of the interest items due from July 1 1933 to Dec. 31 1933, and will forward its scrip in payment of the balance of such interest items. At present, according to the registration statement, the date at which the scrip will be redeemed at full value in favor of scrip holders is not determined, but the Golddiskontbank has definitely announced it will, until Dec. 31 1933, purchase the scrip through an Americar agency at 50% of par. The Golddiskontbank will then make the scrip available to German exporters under certain conditions. The Konversionskasse may purchase the scrip from such exporters at per, it is announced. On Oct. 31 1933 the aggregate amount of scrip of Konversionskasse issued and outstanding was 41,015,365 reachsmarks. It is estimated in respect to all interest accruing between July 1 1933 and Dec. 31 1933 to foreign creditors involved, that scrip in an aggregate of 80,000,000 reichsmarks (including the amount of scrip now outstanding) will be issued by the Konversionskasse in all countries. The scrip has no maturity and bears no interest, and the total amount outstanding as shown above it in the hands of the public. The Konversionskasse explains in its registration statement that "because of the fact that the operations of the Konversionskasse have only so recently commenced and its experience therefore furnishes no data and of the fact that adequate data from other sources is unavailable, said figures of 5,000,000 reichsmarks (estimated) is only an 'estimate' in the loosest sense of the word." The law of June 9 1933 requires German debtors with foreign creditors to pay into the Konversionskasse the reichsmark equivalent (at a rate of exchange on the day prior to the date of payment to the Konversionskasse) of the interest accruing on the type of indebtedness provided in such law. The law authorizes the Reichsbank to determine when payments out of such reichsmark funds shall be made. Claims of creditors to the reichsmark funds are determined according to principles laid down in the statutes of the Konversionskasse, which were established by the Reichswirtschaftminister in agreement with the Reichsbank-Direktorium. Its statutes authorize the Konversionskasse to issue its Reichsmark certificates of indebtedness, called "scrip." On interest payments due between July 1 1933 and Dec. 31 1933, 60% of the reichsmark amounts paid in shall be converted into foreign exchange at the rate of exchange governing the payment to the' Konversionskasse and paid to foreign creditors involved. The Konversionskasse owns property in Germany and is authorized to do business there. It owns no property in the United States and is not authorized to do business in any State. It was established June 9 1933, and commenced receiving payments from German debtors soon thereafter. It is organized as a public law corporation of Germany, having so stockholders and holding no annual meetings. These corporations, under German law, are legal entities formed to serve public or semi-public purposes and normally carry out their functions under the direct or indirect control of some public body. An item with reference to the filing of the registration statement appeared in our issue of Dec. 16, page 4272. Germany Pays League of Nations Dues to Permit Withdrawal. Geneva advices, Dec. 15, are taken as follows from the New York "Times": Germany has now quietly paid to the League of Nations $134,000 in gold of her back dues and promised to square her account through 1933 by Dec. 30. Hitherto Germany has alleged her inability to transfer her dues to the League and has suggested that Geneva take them out in trade, which was refused. Her ability now to transfer money coincides with the coming into play of the provision whereby she cannot free herself of her covenant obligations until she has paid all her back dues and those for the next two years. Even before withdrawing from the League, however, the Hitler Government promised to transfer its arrears in dues. Japan has not paid her 1933 dues. German Reichsbank Notes Withdrawn from Circulation. From the "Monetary Times" of Toronto, Dec.8, we take the following: By proclamation of Oct. 13, the directorate of the German Reichsbank have called up the Reichsbank notes of a denomination of 10 reichsmarks, bearing the date of issue of Oct. 11 1924, according to a memorandum issued this week by L. Hempff, German Consul-General, Montreal. These notes cease to be legal tender after Jan. 31 1934. Owners of these banknotes can present them in payment or in exchange for legal tender at all branches of the Reichsbank until Feb. 28 1934. After this date the called-up notes become invalid and the obligation of the Reichsbank to redeem them ceases. German Debt Cut 13 Billion Marks—Reichsbank Figures Reveal Reduction of Foreign Obligations Since 1930—Total Now 19,000,000,000. In a Berlin message, Dec. 16, to the New York "Times," it was noted that according to the return compiled by the Reichsbank for the official banking inquiry and allowing for subsequent further depreciation of currencies, Germany's total foreign indebtedness has fallen since the end of 1930 Financial Chronicle 4446 by 13,000,000,000 marks, and is now 19,000,000,000 marks against a maximum of 32,000,000,000 marks. The account added: The decline is due to numerous factors, including the following: Involuntary repayment of the short-term debt in the 1931 crisis, subsequent gradual short-term repayments under the standstill agreements, non-renewal of acceptance credits owing to stagnation of foreign trade, regular amortization of bonds down to July 1933, repurchase of bonds, reduction of the foreign blocked-mark balance via supplementary export, the Reichsbank's voluntary repayments of its foreign rediscount credits last spring, and, finally, reduction of dollar, sterling and Swedish crown liabilities in consequence of depreciation. German on Mortgages Expected to Be Extended —Silk Yarn Import Curbed. In its issue of Dec.17 the New York "Herald Tribune" published the following (copyright) from Berlin, Dec. 17: Decree In order to avoid an acute strain on the capital market, which would prove unbearable under the present economic conditions of the country, the mortgage moratorium, enacted as an emergency decree in December 1931, and the amendment of November 1932, will probably be extended another year, It was announced by the "Deutsche Sparkassenzeitung." Present regulations deferred all mortgage repayments until April 1934, by postponing foreclosure rights to Dec. 31 this year. Prolongation of a year would fix the earliest foreclosure date as Dec. 31 1934, and the due date April 1 1935. Between Dec. 31 1933 and Dec. 31 1935, about 10,000,000,000 marks in mortgages are falling due, of which 3,000,000,000 are coming from private sources. It is believed that the capital market will have been sufficiently reorganized and consolidated by the end of 1935, through organized interest lowering and other measures, to bear such large capital movements. Under the emergency decree mortgage bank debtors are entitled to discharge these liabilities with mortgage bonds. This regulation also is terminating at the end of this month and is expected to be prolonged six months, although the recent sharp rise in the German bond market counteracts these transactions. Pursuing measures to support the German viscose silk industry the Minister of Economics for the Reich yesterday enacted an amendment to the goods import act of December 12 1925, including all kinds of artificial silk yarns in the list of those goods whose import is subject to special permit. Members of the "artificial silk sales bureau" will be granted general import permission for their allotted quota, but all non-members must apply for a permit through a representative residing in Germany, giving lull details of their imports since 1931. Since the beginning of the year average monthly German silk imports rose from 2,870,000 to 4,000,000 marks, while exports fell. The high tariff on silk fabrics impedes imports and the dodging of this measure should greatly increase utilization of German plant capacity. Austrian Decree Reported as Establishing Austria as "Taypayers' Sanctuary" for Wealthy Foreigners. The New York "Times" reported the following from Vienna Dec. 8: By a Ministerial decree issued this morning Chancellor Dollfuss established Austria as a "taxpayers' sanctuary" for wealthy foreigners. The decree has been cleverly thought out to attract the unwilling payer of the income tax. On the principle, "To him that bath shall be given," foreigners who are deemed sufficiently wealthy, and who come to Austria to spend their money, may, at the discretion of the tax officials, be freed from practically all their liability for Austrian taxation. This is not granted as a right, but as a favor when the financial authorities consider the applicant "financially suitable." Nobody who earns a living in Austria will be considered; it is not the wage earner, but the generous spender who is desired. No foreigner already living in Austria will receive any reduction, however lavishly he spends. The decree is designed solely to attract additional wealthy foreigners to Austria. Employers' Groups Dissolve in Germany—The Industrial Associations Act Voluntarily in Drive for "State of Estates." A wireless message from Berlin, Dec. 1, to the New York "Times" stated: Another step toward converting Germany into a supposedly classless "State of estates" was taken to-day when the industrial employers' associations announced their voluntary dissolution. These are wholly distinct from the business associations of industry, trade and commerce, which remain intact and take over the "sociological" functions of the employers' associations. But the special organizations of employers, created as counterparts of the labor unions to deal with wages, working conditions and strikes, now disappear. They are considered organs of "class warfare." And since the end of the labor unions has already been announced, it was good tactics on the part of the Nazi authorities to abolish the employers' organizations first. "I estimate that the dissolution of all the associations, which is according to the will of the Government and my own wish, will have been accomplished in a few months." Robert Ley, leader of the German Labor Front, announced. By the associations he meant particularly the labor unions. The campaign to unite all industrialists, merchants and tradesmen in their own respective special organizations continues, as does that of the Labor Front to enlist every German "Aryan" worker of "fist and brow." In both campaigns the Nazi authorities report great success. New German Military Oath Said to Omit Statement Regarding Allegiance to Constitution. Associated Press accounts Dec. 1 from Berlin to the New York "Times" reported: A new military oath "in harmony with the new State" was authorized to-night by the German Cabinet. It reads: "I swear by God and this holy oath that I will loyally and honorably serve the people and the Fatherland always and that as an obedient and courageous soldier I will be ready at all times to sacrifice my life for this oath." A significant change is the elimination of a statement regarding allegiance to the Constitution in the oath. Dec. 23 1933 German Steel Loan Ordered Paid in Marks—Court Holds Dollar Clause Guarantees Stability of Both Values of Issue. Copyright advices from Berlin, Dec. 9, are taken as follows from the New York "Herald Tribune": Interpretation of the dollar clause of post-inflationary German reichsmark bond issues is causing considerable confusion in this country since the Duesseldorf County Court decided on Dec. 6—contrary to the recent sentence of the Cologne District Court—in favor of bondholders of series 13 obligations of the German steel trust, ordering Vereinigte Stahlwerke to redeem coupons in their full reichsmark value. The dollar clause of these issues, originally introduced in the loan terms to safeguard bondholders against new currency depreciation, is now interpreted by debtors as a firm dollar basis and also applicable to to-day's low quotation. The Duesseldorf court has now maintained that the loan is a reichsmark loan and not a disguised dollar issue, and that the dollar clause meant to guarantee stability not only of the reichsmark but also of the dollar. Although the case will be appealed to the Supreme Court, the decision caused series B steel bonds to rise 5 points and affected the quotations of 6% gold loan City of Berlin 1924. The latter gold mark issue also contains a dollar clause, and it was announced that the municipality would redeem the coupon due Jan. 2 on a dollar basis only. After the Duesseldorf decision, reichsmark redemption was anticipated and the quotation rose under allotments. Addressing an assembly of Berlin house owners this week, State Secretary Rheinhardt, Minister of Finance to the Reich, commented on measures recently enforced to facilitate house repair work on a labor providing basis. Besides, Herr Rheinhardt hinted at the pending reorganization of the entire German tax system. The scheme includes a general lowering of income tax whereby the minimum rate shall be lowered from 8 to 10%, while the maximum is to be below the present 50% rate. Rising reductions will be granted for each child. This measure will also be applied to the property tax. Inheritance tax for husband, wife, children and grandchildren will be abolished. Stress will be laid on the abolition of a multitude of taxes and a highly complicated tax jurisdiction, Rheinhardt declared. German unemployment figures dropped in November. The decrease in the second half of the month totaled 62,000, but an increase for the first half reduces the total decrease to 31.000. Unemployment in outdoor professions Increased 27,000, but other groups dropped 58,000. unemployed registered on Nov. 30 a total of 3,714,000. Two Principal News Agencies in Germany Merged Under Control of Reich—Wolf's and Telegraphen Union Combine for All Domestic Service. The merger of.the two principal news-gathering organizations in Germany was announced on Nov. 28, resulting in the creation of a monopolistic agency for obtaining and distributing news in the Reich. The merger brings together the Wolf Telegraphic Agency and the Telegraphen Union, so far as domestic service is concerned. The new organization will be under control of the Nazi Government, since the Wolf has for a long time been a semi-official association. A copyright dispatch of Nov. 28 to the New York "Herald Tribune" from Berlin added the following details of the merger: With the passing as a separate entity of the "T. U.," as the Telegraphen Union was known, the last independent news-gathering organization disappears from the German scene. The merger also curtails considerably the power of Dr. Alfred Hugenberg, former leader of the Nationalist Party and one-time Cabinet associate of Chancellor Adolf Hitler. For more than a decade Dr. Hugenberg's Telegraphen Union practically molded public opinion in the German provinces. Named "German News Bureau." The combined organization, while it will act as an official press agency for Government announcements, will be, from the financial viewpoint, a private corporation known as the "German News Bureau." Its Chairman will be Otto Meyer, who has been Chairman of the "T. U.," and the Vice-Chairman will be Gustav Albrecht, until now head of the Wolf Bureau. A supervisory committee will be headed by Herr Bruckmann, a well-known Munich art publisher. and the Nazi representative, who will act as ViceChairman of the committee, is Captain Weiss, chief editor of the "Voelkischer Beobachter," the principal Nazi newspaper organ. It is stated that the combine will begin to function before the end of the year, "recent economic developments in the German press" are assigned as the reason for the merger. While it enables the Nazi regime to control the dissemination of news at the source, it removes the fangs of Dr. Hugenberg, now as ever a potential enemy of the Third Reich and believed to be secretly in favor of a Hohenzollern restoration. Electrification of German State Railway Progressing. Steady progress is being made in the electrification of Germany's State Railway, according to a report fromViceConsul C. T. Zawadzki, Berlin, made public by the Commerce Department on Dec. 8. The Department further announced: At the end of 1932 this system operated a total of 1,636 kilometers of electric lines, of which 1,343 were long-distance lines and the rest urban, suburban or branch lines. Work on the electrification of 256 additional kilometers was begun in 1932 and completed in the summer of the present year, the report shows. During 1932 the German State Railway purchased four electric locomotives. 24 slow-train locomotives and 13 locomotives of other types. Two trial locomotives are at present being constructed for heavy freight service. Other equipment purchased as a result of the electrification project included 57 rail motor cars and 73 control cars. Referring to plans for the coming year, the report shows that State loans by Bavaria and Wuerttemberg will permit further electrification ok railway lines in those areas. The Bavaria project calla for an outlay of 32,000,000 reichsmarks, while the cost of the Wuerttemberg project is estimated at about 6,600,000 reichsmarks. The German State Railway,the report reveals, at present owns 53 railway power plants with an output of about 134.000 kilowatts, which provides about one-quarter of the electric current consumed by the railroad system. Financial Chronicle Volume 137 Merger of Four Largest Iron and Steel Concerns in Germany Approved. A shareholders' meeting of four of Germany's largest iron and steel concerns approved on Nov. 29 a $220,000,000 merger into a huge holding company to be called the Vereinigte Stahlwerke. We quote from Associated Press advices from Essen Nov. 29, which further stated: Culminating a joint working agreement among the four companies, the merger was based on the principle of "concentration" of finances and "deconcentration" of production. It was regarded as the biggest deal of Its kind in recent years. Emphasizing its advantages, Dr. Albert Voegler, one of Germany's most active industrialists,said: "A stable Nazi Government is the best guarantor of economic recovery." The concerns involved were the Vereinigte Stahlwerke, Gelsenkirchener Bergwerks Gesellschaft, Phoenix Aktien Gesellschaft Fuer Bergbau und Huettenbetries and Stahlwerke Vanderzypen und Wissener Eisenhuetten Gesellschaft. The capital shares of the holding company were fixed at 536.500,000 marks (currently about $220,000,000), or 700,000,000 marks less than the original total of the capitalization of the four companies. • Boycotted German Toys Will Be Sold at Home. From the New York "Times" we take the following from Berlin, Dec. 2: The new German Advertising Council, acting in conjunction with the Ministry of Propaganda,started to-day a nation-wide campaign to counteract the drop in exports of German toys and Christmas tree trimmings by expanding the home market. The Interior Minister of Thuringia, where a large part of the industry is situated, had already conceived the idea of putting a Christmas tree in every home and every school to help the suffering Thuringian workers. The Propaganda Ministry has barred from stores a large number of novelties on the ground that tiley desecrate the symbols of the Third Reich. These include suspenders, sweaters and baby aprons with the swastika cross and "Heil Hitler" on them. Christmas tree trimmings showing the swastika cross, dolls in storm troop uniforms and transparent pictures of Chancellor Hitler have been approved. Sinking Fund on City of Dresden's 20-year 7% Sinking Fund Gold Bonds External Loan of 1925 to Be Suspended for 1934. The City of Dresden has advised Speyer & Co. as fiscal agents for the city's 20-year 7% sinking fund gold bonds external loan of 1925, that because of the necessity of providing increased amounts to cover the cost of its social services, particularly providing for unemployment relief, the city's financial position is such that it will be compelled to suspend the sinking fund on its external debt for the year 1934,it was announced by Speyer & Co. on Dec. 19. Speyer & Co., as fiscal agents for the dollar loan, and Lazard Brothers & Co. of London, as fiscal agents for the 53'% sterling loan of 1927, are recommending the acceptance of this suspension of sinking fund. Of the $5,000,000 bonds originally issued by Speyer & Co., $1,990,500 par value of bonds have been redeemed through the operation of the sinking fund, so that only $3,009,500 of the original issue now remain outstanding. The Hague Levies New Tax—Imposed on Home and Foreign Dividend Coupons. The following (copyright) cablegram from The Hague (Dec. 17) is from the New York "Herald Tribune": Through a law passed by the States General last Wednesday, a new tax rate of 2% has been imposed on dividend coupons, both home and foreign securities, which will come into force early in the new year. The term of this tax is fixed provisionally for five years. Exceptions to this are securities in the Dutch East and West Indies on which the local governments themselves propose to impose a similar tax, and home stocks of which dividends are the subject of income tax as well as certain foreign securities quoted below par. Reduction in Salaries and Cost of Living Proposed by Premier Mussolini of Italy to Meet Competition with Countries Off Gold Standard. A nation-wide and simultaneous reduction in salaries and the cost of living is being worked out by Premier Mussolini and experts of the corporative State, it was stated in Associated Press accounts from Rome, Dec. 11, which went on to say: Every person in the kingdom, tlirectly or indirectly affected, is expected to participate In a reduction similar to that of October 1930 when the Government forced every salary in Italy and all rent, light, heat, food and transport charges down between 10 and 12%. The Government said a wholesale reduction in wages and the cost of living must be effected if Italy is to continue to export products. Figures cited recently by Under-Secretary of Corporations Asquini showed that Italy in the third quarter of 1933 had exported barely 15% of the amount sent abroad in the same period of 1932, while imports increased 534%, Before the National Foreign Trade Commission Signor Asquini declared frankly that Italy was losing ground in foreign trade competition and would have to act quickly to save the situation. Competition with countries off the gold standard, notably the United States, Great Britain and Japan, requires that Italy either reduce the cost of production appreciably or inflate the currency, he indicated. The latter policy, Premier Mussolini has said, will not be adopted. Hopes for a united front of European gold States against the "economic blocs of sterling, dollars and yen" were said by Signor Asquini to have been "dissipated." 4447 The Chamber of Deputies, which Premier Mussolini recently said "has never pleased" him, met this afternoon for the beginning of the winter term that will end its dissolution in March. Bills of national import will come up toward the end of the week. Most important of them is Premier Mussolini's decree permitting the Government to guarantee principal and interest on the bond issues of private companies. Sir Cecil Hurst Elected President of Court of International Justice. From The Hague Associated Press advices Dec. 2 Stated: Sir Cecil Hurst of Great Britain was elected President of the Permanent Court of International Justice (the World Court) to-day, succeeding Mineichiro Adachi, of Japan, who has been President since 1931. Sir Cecil will hold the office from January 1934 to December 1936. Incident to the above the New York "Herald Tribune" of Dec. 3 commented as follows: Proponent of Root Plan. Cecil James Barrington Hurst, authority on international law and British representative in the World Court since 1929, was one of the foremost proponents of the Root plan to amend the Covenant of the League of Nations to allow the United States to join the World Court. He was born on Oct. 28 1870. Joining the Foreign Office staff in 1902, he became legal secretary of the British delegation to the armament reduction conference, which met at The Hague in 1907. At the Naval Conference in London in 1908 he was a delegate and was the British member of the drafting committee at the Paris Peace Conference in 1919. He was appointed a jurist on the Commission on the Laws of War at the Washington Naval Conference of 1922 and was nominated in March 1929 to be the British representative at the World Court, From 1918 to 1929, when he went to The Hague, he was legal adviser to the British Foreign Office. Deficit of $249,816,000 Reported in Italy's 1934-1935 Budget. Under date of Dec. 9 Associated Press accounts from Rome stated: A deficit of 2,974,000,000 lire (currently, approximately $249,816,000) in the 1934-35 budget was approved to-day by the Italian Council of Ministers. Total expenses were estimated at 20,636,000,000 lire ($1,733,424,000), compared to estimated receipts of 17,662.000,000 lire ($1,483,608,000). Expenses were set at 22,000,000 lire (61,848,000) more than those of the present fiscal year, while receipts will be 555,000,000 lire ($46,620,000) less. The military Ministries of War. Navy and Air show a total reduction of 260,000,000 lire ($21.840,000). The principal increase was for the Ministry of Finance because of increased interest charges. The deficit for the present year approximated 4,000,000,000 lire ($336,000,000). Italy Facing Cut in Wages to Aid Recovery—Undersold in Foreign Markets, She Seeks to Reduce Production Costs. The following Rome advices (Dec. 15) are taken from the New York "Times:" Italy faces the prospect of a general cut in wages and salaries to bring them into adjustment with the situation created by four years of depression. According to reliable reports, a start will be made by reducing the salaries of government employees 8%,followed by similar reductions in all wages and salaries. An attempt will be made to effect a corresponding reduction in the cost of living by forcing down rents and prices of necessities. The need for such a move is reflected clearly in Italy's foreign-trade figures. World trade, after a consistent fall since 1929, showed a slight improvement for the third quarter of this year. Italy's trade balance for the quarter, on the other hand, was one of the worst on record. Trade Balance Grows Worse. From the beginning of the depression to August of this year, Italian foreign trade dropped steadily, with imports declining more sharply than exports. For the third quarter of the year, however, exports decreased 15% and imports only 5%. The period from August to October, inclusive, which last year showed an excess of exports over imports of 65.000,000 lire (nearly $3.000,000 at the current exchange rate), whereas for the corresponding period of this year imports exceeded exports by 272,000,000 lire (nearly 328,000,000). This year's increase in imports is taken to indicate an awakening of industrial activity, virtually all raw materials being imported. On the other hand, the fact that Italy's trade balance has become more unfavorable, due to the sharper decrease in exports, indicates she is losing some of the markets on which it was believed she could count. The situation is garve, as Italy must sell her products abroad to pay for imports of raw materials for the industries which it is hoped may absorb many of the millions of unemployed workers. Italians Undersold Abroad. The unfavorable trend of Italian exports has been attributed to many causes. The government, however, facing the facts unflinchingly, admits that Italian producers are being undersold dn the world's markets. The depreciation of the pound and the dollar resulted in a 30 to 40% drop in gold prices. Italian producers were able to follow the downward trend for a while, but they are now nearing the breaking point. As the government has set its face firmly against currency depreciation, the only alternative is to lower production costs by cutting wages. "We must act quickly," declared a member of the government, "to prevent the paradoxical situation that Italy, after weathering the worst of the depression, should find herself bested in the world markets just when world economy is beginning to show signs of recovery." Foreign Bondholders Committee Ready to Function— Statement Issued by Council. Elsewhere in these columns to-day we refer to the completion of the organization of the Foreign Bondholders' Protective Council. Below we give the stat n.ent issued by th Council on tha' day: The great volume of foreign bonds sold in the United States in the last decade, of which a substantial amount is now in default, constitutes one of the major problems to be dealt with in world recovery. It also creates a 4448 Financial Chronicle situation which, unless handled in a proper and orderly way, can seriously disturb the relations of the United States with many of the foreign nations involved. Already friction has arisen between our nationals and those of other creditor nations in dealing with the obligations of common debtors, due to lack of an authoritative central bondholders' organization in the United States. Moreover, one or more so-called central bondholders' organizations have been formed in the United States: and conflicting bondholders' protective committees have been organized with respect to the bonds of several of the debtor countries. Under these circumstances, not only American bondholders but also foreign debtors are confused as to which organizations they should deal with. Because the foreign bonds sold in the United States have been distributed so widely, over the entire country, that the holdings of most issues are said to average only three bonds per person, it is obviously impracticable for the bondholders themselves to take the initiative and form their own central bondholders' organization. Under these circumstances, the administration in Washington took the Initiative, in the interest of hundreds of thousands of small, widely scattered bondholders; and the members took upon themselves the patriotic duty of bringing into existence an adequate, effective and disinterested organizations to carry on the work of properly protecting American interests in respect of foreign bonds which are wholly or partly in default, now or hereafter; also of unifying, as far as possible, all American groups that seek to act in protection of American interests. Investing in foreign bonds is relatively new n this country, and we have had little experience in dealing with the problems which arise when such bonds are in default. Conditions surrounding the distribution of foreign bonds in the United States differ from those prevailing in the various European countries. In most of these countries, however, the fact that they have found it necessary to have central organizations, under private auspices, to deal with the general problem of defaulted foreign bonds has created a wide-spread opinion in the United States that we should do likewise. Indeed, the complex situation in respect of foreign bonds in this countrY, already referred to, only serves to emphasize the need for a central organization here. While it is impossible for the Committee to determine in advance the exact lines on which the American organization will work, it appears: (a) That it should keep itself thoroughly informed of the conditions surrounding every issue where default has occurred or is threatened. (b) That in each of these situations it should endeavor, in a proper and orderly way, to protect or assist in protecting American interests. (c) That because no one organization could handle effectively the great number and diversity of the issues already in default, the proposed council should follow the European practice of forming, at the proper time, special negotiating committees, or affiliate with itself existing committees, to deal with the defaults of particular countries or issues, furnishing from its own membership one or more members of such committees, if such a course appears desirable. (d) That in all cases where final settlements are negotiated by special committees the council should be asked to pass upon the terms and fairness of the settlement Proposed. The great number of letters already received by the organizing committee from individual bondholders all over the country indicates a general satisfaction that a disinterested organization is being created to act in protection of their interests. The Committee, however,feels that it should emphasize, on the one hand, to holders of bonds in default, that in view of the depression and the disorganization of world trade, there Is little that can be done toward bringing about prompt resumption of interest and sinking fund payments; and, on the other hand, to the debtor countries, that they should not regard the formation of the council as an indication that American bondholders are ready to negotiate settlements on the basis of the present Impaired capacity of debtors to pay. Patience, on both sides, and the recovery of world trade, are necessary prerequisites to satisfactory negotiations for resumption or settlements. Experience has shown that similar bondholders' councils In foreign countries have financed themselves, in the main, by means of sums set aside for them in connection with completed negotiations with debtors. This creates a reasonable presumption, but of course not a certainty, that the same may eventually be true of the American organization. No such method of financing the American council, however, is In prospect at present. The Committee has, therefore, reached the conclusion that the Council should look for its financial support, for the present, at least, to those who should benefit from its assistance and work. They fall into several classes: 1. Holders of foreign bonds, whether individuals, corporations or banks. The benefit of the counsel to this class is obvious. 2. Banks and bankers who issue or distributed foreign bonds. This class will benefit directly from the existence of an authoritative and disinterested body,on which they are in no wise represented, which may adjust conflicting interests either at home or in debtor countries, and pass on the fairness of the settlements or arrangements proposed in respect of defaulted bonds. Moreover, this class has a special responsibility for the financial support of a council dealing with defaults arising in securities which they themselves issued or distributed. 3. Banks which, though not holders of foreign bonds, are engaged in financing exports and imports. Here the benefit may be measured by the assistance the work of the council, in respect of foreign long-term credits in the United States, may render to the recovery of world trade. Advantage to Exporters. 4. Manufacturers or merchants engaged in exporting or importing as Well as producers of staple exports such as cotton, wheat, corn, livestock, copper, &c. This class benefited greatly from the increased purchasing power of foreign countries while their bonds were being floated in the United States. When these ceased and widespread defaults ensued, foreign purchasing power was greatly reduced. Whatever can be done toward settling defaulted obligations and restoring the credit of the countries affected will benefit both exporters and importers. Moreover, many exporters, through the imposition of foreign exchange controls by debtor countries, have now become investors through having been forced to convert their cash balances in such countries into bonds. 5. Foundations and public spirited citizens. To this class the Council affords a medium through which they may contribute toward solving one of the largest financial problems in the recovery program. A broad base of support, from all these interests and all parts of the country is of the utmost importance as an assurance of the permanence and effectiveness of the Council: Accordingly, in addition to the Directors of the corporation, two other classes of membership are provided for. Such members are to be elected. and their dues or contributions fixed, by the Executive Committee. They have the right to attend all meetings of the members and participate in the discussions, but have no right to vote. These two additional classes consist of (a) contributing members who pay annual dues and (b) founders, who Dec. 23 1933 become members for life by contributing a single and more substantial sum. The annual report of the president is to include a statement of the income and expenses of the Council, including the salary paid to officers; also a list of all the members of the Council with their dues or contribution. During the past two months, we have been impressed with the cooperative attitude of all the interests involved, both official and private. We believe this co-operation will continue as the Council undertakes to assemble a small but expert staff, to secure financial support, to gather authoritative information concerning issues in default or threatening to default and to establish such relations with bondholders and other interests, with the State Department, and with debtors, as will enable it to enter upon Its work and effectively discharge the responsibilities that lie ahead. We may also observe that we have been increasingly impressed with the heavy and varied nature of those responsibilities, which this group will assume in bringing the Council into existence. But we have, at all times, had in mind the statement made to us by the administration at our meeting of Oct. 20, that the creation of a working council must be achieved and that "the Government expects it will be achieved." Foreign Bondholders' Protective Committee Ready to Function. Organization of the Foreign Bondholders' Protective Council, Inc., to assist American holders of foreign bonds now in default, was completed at a meeting on Dec. 18, held in the quarters of the Federal Reserve Board in Washington. Raymond B. Stevens of New Hampshire was elected permanent President and articles of incorporation were filed in Maryland. Mr. Stevens recently retired from the Federal Trade Commission. A statement issued by the Council after the Conference stated that "the Council will endeavor to render assistance to American investors in all public bonds issued by foreign Governments, States and municipalities that are now in default, brit will not take action with regard to obligations of private foreign corporations." The following from Washington Dec. 18 is from the New York "Times": It was announced that the Council will be non-profitmaking and that the directors will serve without compensation. Funds necessary for the Council's work will be raised by contributionsfrom bondholders,individuals, banks or business concerns and possibly with financial aid from endowed foundations. E. 1. Hopkins a Vice-President. Ernest M. Hopkins, President of Dartmouth College, and Laird Bell, attorney-at-law of Chicago, were elected Vice-Presidents. Other members of the executive committee included Hendon Chubb of Chubb & Son, marine insurance; Pierre Jay, Chairman of the Fiduciary Trust Co.; T. D. Thacher, former Solicitor General and J. C. Traphagen, President of the Bank of New York & Trust Co., all of New York City. Other directors of the Council are: Charles Francis Adams of Boston, former Secretary of the Navy. Newton D. Baker of Cleveland, former Secretary of War. J. Reuben Clark of Salt Lake City, former Under-Secretary of State and former Ambassador to Mexico. W. L. Clayton of Houston, Texas, cotton broker. John Cowles, associate publisher of the Des Moines "Register and Tribune." Herman Ekern, former Attorney-General of Wisconsin. Phillip La Follette, former Governor of Wisconsin. Frank 0. Lowden, former Governor of Illinois. 0. K. McMurray, Dean of the University of California Law School. Roland S. Morris of Philadelphia, former Ambassador to Japan. Quincy Wright, Professor of International Law at the University of Chicago. The statement issued by the Council is given in this issue of our paper under a separate head. Earlier references to the formation of the Council appeared in our issues of Oct. 21, page 2898 and Oct. 28, page 3065. Max Winkler of American Council of Foreign Bondholders Expects Financial Interests Identified with Foreign Loans to View with Satisfaction Announcement That Foreign Bondholders' Protective Council Is Ready to Function—Comments on Similar Efforts. Announcement that the Foreign Bondholders' Protective Council is ready to function and look after the interests of American holders of foreign defaulted bonds, is likely to be received with distinct satisfaction by the various financial institutions identified with the distribution of foreign loans in the United States, in the opinion of Max Winkler, President of the American Council of Foreign Bondholders, a non-profit membership organization, which for about two years has been furnishing its Members with information concerning the economic and financial conditions in foreign countries, with particular reference to those where American capital is heavily invested and which have been either unwilling or unable to meet contractual commitments. Dr. Winkler added: Whether the long-hoped for salvage will at last be effected on behalf of bondholders, is highly doubtful. A somewhat similar group of non-partisan men was called to Washington about two years ago, immediately after the collapse of the gigantic Kreuger combine which cost the American public about a quarter of a billion dollars. It will be recalled that the group included, among others, Mr.Perkins of Boston,a director of Lee Higginson, bankers for the late Match King, and Pierre Jay, who, when requested to associate himself with a Foreign Bondholders' organization, specifically stated that he would do so only with the sanction and approval of the various financial institutions identified with the organization and distribution of foreign loans. When opposition to this group became quite Volume 137 Financial Chronicle Pronounced, Senator Hiram Johnson, who was chiefly responsible for the uncovering of many irregularities and abuses in connection with the sale of foreign bonds to the American public, proposed an amendment which bore his name, providing for the formation of an agency whose function was intended to be to protect the countless victims of the Foreign Bond Bubble. The measure provided further that no bankers who,for a period of five years, had directly or indirectly been connected with foreign issues, were to be identified with the Agency. Inasmuch as it is reasonable to assume that the latter, had it been permitted to function as set up originally in the Johnson Amendment, might have tended to interfere with the plans formulated or about to be formulated by those responsible for the distribution of foriegn loans to the American public, the latest change involving the virtual abandonment of the Johnson bill will be welcomed by those institutions who were identified with the flotation of foreign loans, and to whom the American holders of foreign defaulted bonds have been looking for protection. It is somewhat difficult to subscribe unqualifiedly to the suggestion made by the new body, that the present time is inopportune for negotiating with defaulting Governments relative to an adjustment of their outstanding commitments. Experience teaches that whenever attempts are made to adjust defaulted obligations immediately after the default occurs, bondholders are accorded immeasurably better treatment than they are if negotiations are protracted. Very often, a government which has remained in default for several years becomes accustomed to such a state of affairs, and, realizing that it can continue to disregard the rights and privileges of creditors with impunity, pays little heed to whatever overtures may be made to it after the default has lasted for some time. Mexico is a classic example which bears adequate testimony to this view. If the new organization will approach the question of default in the light of revelations before the Senate Committee on Banking and Currency, it is possible that progress will be recorded. If. on the other hand, irregularities and abuses which, in many instances, have characterized foreign bond flotations will be overlooked or ignored, the bondholders stand little chance of recouping their losses incident on defaults and the disastrous shrinkage in the market value of their holdings. Pan-AmericanIConference—Secretary Hull, on Behalf of United States Backs Anti-War Pacts—Urges Adherence of All American Nations to Peace Treaties—Parley Offers Good Offices to Paraguay and Bolivia in Settlement of Chaco Dispute— Secretary Hull's Address. Cordell Hull, Secretary of State of the United States, speaking before the Pan-American Conference at Montevideo, on Dec. 15, announced the adherence of the United States to the Argentine anti-war pact, Which had been introduced into the record on Dec. 8 by Saavedra Lamas, Foreign Minister of Argentina, as described in our issue of Dec. 16, pages 4275-76. Mr. Hull, in urging general adherence of the American nations to such of the five world peace pacts as they have not already signed, made what was regarded in some quarters as a pledge that the United States would renounce any part in the affairs of Cuba or Haiti. The five peace treaties, together with the names of the countries that have not yet signified their adherence, follow: Gondra Treaty to Avoid and Prevent Conflict, signed at Sanitago, Chile, 1923—Argentina and Bolivia. Conciliation Convention, signed at Washington in 1929—Argentina, Bolivia, Colombia, Costa Rica, Honduras, Paraguay, Peru, Uruguay and Venezuela. Arbitration Convention, signed at Washington in 1929—Argentina, Bolivia, Colombia, Costa Rica, Ecuador, Honduras, Paraguay, Peru, the United States and Uruguay. Briand-Kellogg Pact—Argentina, Bolivia, Brazil, El Salvador and Uruguay. Argentine Anti-War Pact, signed at Rio de Janeiro October 1933—Bolivia, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Haiti, Nicaragua, Panama, Peru, El Salvador, the United States and Venezuela. Guatemala and Honduras signified their intention to sign at this Conference. Mr. Hull declared that "the people of my country strongly feel that the so-called right of conquest must forever be banished from this hemisphere, and most of all they shun and reject this right for themselves." Outlining the attitude taken by the United States, Mr. Hull said that it was "determined that its new deal of enlightened liberalism slhall have full effect and be recognized to its fullest extent by its neighbors. Let each nation welcome the closest scrutiny by others of the spirit and manner in which it carries out the policy of 'good neighbor.'" Mr. Hull's address, as made public at the State Department in Washington, on Dec. 15, follows: Mr. Chairman and Members of the Committee: I arise to say that the delegation of the United States of America is in the heartiest accord with the very timely and vitally important resolution offered by the able Minister of Foreign Affairs of Argentina, Dr. Saavedra Lamas. The benefits of this proposal on peace will be far-reaching. Their stimulating influence will extend beyond this hemisphere and to the uttermost parts of the earth. They will bring cheer and hope to the struggling and discouraged forces of peace everywhere. May I express what is in the mind of every delegate, that our grateful appreciation of this outstanding service of Dr. Saavedra Lamas will most appropriately climax a series of splendid services to the cause of peace which he has rendered. Let me also thank the heads of each delegation with whom I have conferred during past days for their prompt and most valuable cooperation in support of this proposal. The passage of this resolution and the agreement to attach from 12 to 20 signatures of Governments to the five peace pacts or agencies thus far unsigned by them is not a mere mechanical operation. The real significance Is the deep and solemn spirit of peace which pervades the minds and hearts of every delegate here and moves each to undertake a wise and effective step to promote conditions of peace at this critical stage. 4449 The adoption of this resolution and the agreement to sign these five splendid peace instruments will thoroughly strengthen the peace agencies of the 21 American States and make peace permanently secure in this hemisphere. This wholesale affixing of signatures to five treaties through Conference action within itself thoroughly vindicates the policy of international conference. United States Ready to Affix Signature to Argentine Anti-War Pact. I desire most heartily to second the motion to report this resolution favorably. I desire also to say that the United States is ready to affix its signature to the Argentine anti-war pact, and I venture at the same time to express the earnest hope that representatives of all other Governments present will aid in a great service to peace by signifying at this time their willingness to affix on behalf of their Governments their signatures of any of these five treaties which they have,not yet signed. Universal peace has been the chief aim of civilization. Nations fail or succeed according to their failure or success in this supreme undertaking. I profoundly believe that the American nations during the coming years will write a chapter of achievement in the advancement of peace that will stand out in world history. It is in these inspiring circumstances that I and my associates have come to the Conference here in Montevideo. We come too for the reason that the people and the Government of the United States feel the keenest interest in this Conference and have the strongest desire to contribute to its success. We come because we share in common the things that are vital to the entire material, moral and spiritual welfare of the people of this hemisphere and because the satisfactory development of civilization itself in this Western world depends on co-operative efforts by all the Americas. No other common aspiration could so closely draw peoples together. We can have no other objective than these. Our common hopes and responsibilities, chaperoned by common sense and initiative, beckon to all of us. We sense a yearning here for a spirit of fine co-operative endeavor. We know, too, that in this great region, the future possibilities of which no man dare calculate, the world is being given another chance to right itself. By pooling all our resources in an unselfish spirit we shall undertake to meet the test of service to ourselves and to humanity and make the most of the spacious opportunities that lie ahead. We know when we survey our assets that we have the foundations in this part of the world laid for the greatest civilization of all the past—a civilization built upon the highest moral, intellectual and spiritual ideals. Indeed, while other nations totter under the burden of outworn ideas, cling to the decayed and cruel institution of war and use precious resources to feed cannon rather than hungry mouths, we stand ready to carry on in the spirit of that application of the Golden Rule by which we mean the true good-will of the true good neighbor. It is really a very old and universal, though sometimes neglected, rule of conduct, this revitalized policy. It is, however, the real basis of that political liberty for which your own great hero fought and which is our g-reatet common heritage. It is high time for the world to take new heed of it and to restore its ancient and potent meaning. I am gratified to say that I have already found much of this spirit among the distinguished leaders with whom I have talked here in Montevideo. They all keenly realize the crisis that has been thrust upon the New World. Europe Staggers Under Load of Armaments. The Old World looks hopefully in this direction, and we must not disappoint that hope. To-day Europe staggers under the load of bristling armaments paid for out of treasuries depleted by the clogging of trade channels. Our common ties with them redouble our desire to offer our best in the molding of a New World order. We have the opportunity and the duty to carry on. We have a belt of sanity on this part of the globe. We are as one to the objective we seek. We agree that it is a forward-looking enterprise which brings us here, and we must make it a forward-looking enterprise. Peace and economic rehabilitation must be our objective. The avoidance of war must be our supreme purpose. Most gratifying is the practical appeal which your leaders are making to bring an end to the bloody conflict between two of our sister republics— the one small and remaining exception to our hopes and ideals for enduring peace in this hemisphere. This is a blot on our civilization which we must erase. I grant with all my heart that with the end of that conflict war as an instrument for settling international disputes will have lost its last foothold in this hemisphere. President Roosevelt's Definition of "Good Neighbor." In its own forward-looking policy, the Administration at Washington has pledged itself, as I have said, to the policy of the good neighbor. As President Roosevelt has defined the good neighbor, he resolutely respects himself, and because he does so respects the rights of others. We must think, we must speak, we must act this part. I am safe in the statement that each of the American nations wholeheartedly supports this doctrine; that every nation alike earnestly favors the absolute independence, the unimpaired sovereignty, the perfect equality and the political integrity of each nation, large or small; as they similarly oppose aggression in every sense of the word. May I for a moment direct attention to the significance of this broad policy as my country is steadily carrying it into effect under the Roosevelt Administration, the extent and nature of which should be familiar to each of the nations here represented? My Government is doing its utmost with due regard to the commitments made in the past to end with all possible speed engagements which have been set up by previous circumstances. There are some engagements which can be removed more speedily than others. In some instances disentanglement from obligations of another era can only be brought about through the exercise of some patience. The United States is determined that its new policy of its new deal of enlightened liberalism shall have full effect and shall be recognized in its fullest import by its neighbors. The people of my country strongly feel that the so-called right of conquest must forever be banished from this hemisphere, and most of all they shun and reject that so-called right for themselves. The new deal, indeed, would be an empty boast if it did not mean that. Let us, in the broad spirit of this revitalized policy, make this the beginning of a great new era, of a great renaissance in American co-operative effort to promote our entirely material, moral and spiritual affairs and to erect an edifice of peace that will forever endure. Let each American nation vie with each other in the practice of the policy of the good neighbor. Let suspicion, misunderstanding and prejudice be banished from every mind and genuine friendship for and trust in each other and a singleness of purpose to promote the welfare of all be substituted. 4450 Financial Chronicle Let each nation welcome the closest scrutiny by the others of the spirit and manner in which it carries out the policy o/ the good neighbor. Let actions rather than mere words be the acid test of the conduct and motives of each nation. Let each country demonstrate by its every act and practice the sincerity of its purposes and the unselfishness of its relationship as a neighbor. It is in this spirit that the Government and the people of the United States express their recognition of the common interests and common aspirations of the American nations and join with them in a renewed spirit of broad co-operation for the promotion of liberty under law of peace, of justice and of righeousness. Another important action taken by the Conference, on Dec. 15, was an offer sent to Bolivia and Paraguay to extend the good offices of the Conference itself, and of all the Governments there represented, in settling the 50-year-old Chaco controversy. The plenary session adopted a declaraIon calling for peace in the Chaco. The text of the Chaco declaration, and remarks later made regarding it, are given below, as contained in a Montevideo dispatch of Dec. 15 to the New York "Times": "The seventh International Conference of American States declares first that it reaffirms its faith in peaceful means for the solution of international conflicts, by virtue of which it has made and will continue to make every effort to re-establish peace as soon as possible between Bolivia and Paraguay. "Second, that it is ready to co-operate with the League of Nations in the application of the Covenant. Third, the seventh Conference expresses to the Governments of Bolivia and Paraguay its fervent desire that the conflict in which the two sister nations are compromising their future and wasting their energies may end, and we offer them the services of all Governments represented at this Conference." Th first two paragraphs were introduced by Senor Cruchaga and the third by Alfonso Lopez of Colombia. The declaration was unanimously adopted. Foreign Minister Benitez Alvarez Justo Pastor thanked the Conference in the name of the Paraguayan Government for the interest it had taken to attain peace in the Chaco which, he said, was in keeping with the high traditions of the American continent. There was a tremendous outburst of applause, and before it subsided and before Senor Benitez sat down Foreign Minister Casto Rojas of Bolivia arose and said he had attended the assembly to-day with great emotion and would transmit its action and its sentiment to his Government immediately, and he personally thanked every one for the generous spirit which had inspired the Governments and their representatives at to-day's meetings. Pan-American Conference—Approval Given to Secretary Hull's Plan to Cut Tariffs—Parley Backs Argentine-Chilean Recommendation for Anti-War Pacts—Next Session to Be Held in Lima Lima, Peru— Commercial Congress Scheduled for Chile. Delegates to the Pan-American Conference at Montevideo, on Dec. 16, unanimously approved a United States resolution calling for the reduction of tariffs through the conclusion of bilateral and multi-lateral treaties. This proposal had been submitted to the Conferente on Dec. 12 by Secretary of State Cordell Hull, as described in our issue of Dec. 16, pages 42734274. On the same day (Dec. 16) the plenary session of the Conference approved 10 other projects which had previously been studied by Committees, including the Argentine-Chilean peace program inviting all American nations to adhere to existing anti-war pacts. It was also decided to hold the third Pan-American Commercial Congress in Santiago, Chile, in 1934, and the eighth Pan-American Conference in Lima, Peru. Montevideo advices of Dec. 16 to the New York "Times" summarized the action of the Conference on that date as follows: The Conference extended a vote of thanks to Mexico for presenting her economic program and expressed appreciation of the high motives prompting it and of the profound study put into it by Foreign Minister Jose Manuel Puig Casauranc. On Mr. Hull's motion, the Conference entrusted to the eighth Pan-American Conference the study and definition of a policy regarding the admittance of observers from non-American States or international organizations. It also entrusted to the eighth Conference a study of the activities by which the PanAmerican Union can best co-operate with other international agencies without complicating the regional purposes for which it was organized. Alfonso Lopez, casting Colombia's vote in favor of Lima as the site of the next Conference, said Colombia's action, as well as the Conference's action in selecting Lima at a time when the Leticia incident between Colombia and Peru was still pending, should be taken as an expression of confidence In the happy outcome of the present negotiations in Rio de Janeiro. Senor Lopez was heartily applauded. Jose Camacho Carreno of Colombia, who stated in a committee meeting the other day that Colombia could not go to a conference held in a city which burned a Colombian Legation, did not sit with Senor Lopez and the other Colombian delegates this afternoon, but on the far side of the room. Peruvian Expresses Thanks. Felipe Barreda Laos of Peru thanked Senor Lopez and Colombia in the most complimentary terms, describing Senor Lopez as one of the world's outstanding statesmen. He thanked the Conference in behalf of the Peruvian Government for designating Lima, which he said would welcome the delegates with enthusiastic hospitality. The Conference then approved Mr. Hull's declaration, calling upon all American republics to lower tariffs as soon as feasible and to begin negotiations for bilateral trade treaties. Justo Pastor Benitez, chief Paraguayan delegate, made reservations regarding the most-favored-nation clause, saying Paraguay had found it desirable to suppress that clause from her treaties, but he cast Paraguay's vote in favor of "this new hope." Hector David Castro accepted for El Salvador with reservations. Alfredo Skinner Klee expressed Guatemala's adhesion. Dec. 23 1933 Angel Alberto Giraudy of Cuba said the negotiation of trade treaties or any other treaties meant freedom for the contracting nations and that this required the abandonment of the present foreign restrictions on Cuba. He said Cuba believed, however, that Secretary Hull desired Cuba to have freedom of trade where she wants trade. Therefore he cast Cuba's vote in favor of the Hull proposal. The reports on intellectual co-operation, exchange of bibliographic materials and maintainence of historical monuments were adopted without debate. Alexander W. Weddell, Ambassador at Buenos Aires, said the United States heartily co-operated in the movement to strengthen intellectual bonds between countries but was forced to make reservations to the Committee report because her delegates had not had sufficient time to study it. His reference was to a provision to standardize Pan-American copyright practice in accordance with the Rome and Berne Conventions. Costa Rica cabled to-day to the President of the Conference, advising him she would adhere to the Argentine anti-war pact, thereby confirming President Ricardo Jiminez's recent cabled message that Costa Rica was with the Conference in spirit, although she had no delegates. A message was also read from President Juan B. Sacasa of Nicaragua saying Nicaragua would sign the same treaty. Another dispatch from Montevideo to the "Times," on Dec. 16, noted Secretary Hull's approval of the decisions made at the Conference as follows: At the termination of the plenary session of the Pan-American Conference to-day, Secretary of State Hull expressed gratification with its adoption of the economic and peace sections of its program. He said he was especially happy because they went through with unanimity of expression and votes. Both of these declarations, he continued, were such that they will go on growing and expanding doing good. He asserted the seventh Pan-American Conference will go down in history as "the most completely successful international Conference of our time" because of the unanimous spirit of goodwill and the presence of foreign ministers and finance ministers which made it possible for the delegates to understand home problems of the American nations. Mr. Hull said he hoped the Chaco question would be settled before the Conference adjourns. He asserted the delegations were determined that something must be done to bring about a solution of an "inexcusable situation." He hopes individual and group efforts outside the Conference and League of Nations efforts will succeed in settling the Chaco differences before the Conference ends, or at least lay the foundation for an early settlement. Pan-American Conference—Secretary Hull Declares United States Will Not Intervene in Other Nations During Roosevelt Administration—Policy of NonIntervention Unanimously Adopted at Montivideo. —"No Government need fear intervention on the part of the United States under the Roosevelt Administration," Secretary of State Cordell Hull declared before the PanAmerican Conference meeting at Uruguay on Dee. 19. Secretary Hull's statement was made when the Committee on International Law considered a report of a sub-committee on the rights and duties of States. The report, unanimously adopted by the full Committee, was said to constitute an important contribution to international law. It defines recognition, denies the right of intervention, defines the rights of foreigners and forbids the recognition of territory acquired by force. Foreign Minister Carlos Saavedra Lamas of Argentina, in an effort to avoid possible embarrassment to the United States by the passage of a non-intervention clause, had suggested that the subject be referred to an interAm glean committee of prominent jurists for definition. This suggestion was supported by Secretary Hull, but other mcluding those from Ctiba, Nicaragua and Haiti; strongly opposed it. When the final vote was recorded Mr. Hull voted in the affirmative on behalf of the United States, with the reservation that the policies declared in the speeches of President Roosevelt since March 4 and in his own address to the Conference on Dec. 15 wonld be followed pending codification and definition of the terms used in the resolution. He added that in doubtful cases the United States would adhere to the law of nations as generally recognized and accepted. His further remarks were reported as follows in a Montivideo dispatch of Dee.19 to the New York "Times": agrreates, "Every observing person must thoroughly understand," declared Mr. Hull, "that the United States Government is opposed as much as any other to interference with the freedom, sovereignty or other internal affairs or processes of the governments of other nations." Foreign Minister Jose Manuel Pulg Casauranc of Mexico, after paying eloquent tribute to President Roosevelt and the New Deal, said the United States had an opportunity for "anew, noble declaration and reorientation" showing that "a new, noble, valiant man" had entered the White House. "To-day the United States has the most brilliant opportunity of the century," he said, "to enter the hearts of our hemisphere and to establish a policy ofsuch kindness and such firmness as will dispel all sense of strangeness with other nations of the Americas." Carlos Cuadra Pesos of Nicaragua broke the silence he has maintained since the Havana conference, at which he answered Charles E. Hughes's speech against the same resolution that was passed to-day, to become the oratorical hero of the committee session. He drew loud applause from the galleries and some of the delegates when he urged that "these fair promises from Mr. Hull be recorded in writing." -1 I Another dispatch to the "Times" gave the following summary of the principal points in the resolution: I. A State to be recognized under international law must have a permanent population, a determined territory and a government with capacity to enter into relations with other States. Volume 137 Financial Chronicle 2. A Federal State shall constitute a single person under International law. 3. A State's political existence shall be independent of recognition by other States. A State shall possess rights before recognition. 4. States shall be juridically equal. 5. The fundamental rights of States shall be uninfringeable. 6. Recognition shall be unconditional and irrevocable and shall merely signify acceptance of the State's personality with all rights and duties. 7. Recognitionjmay be express or tacit, resulting from any act implying Intention to recognize. &AN° State shall have the right to intervene in the affairs of another. 94Foreigners can claim only the same protection as the State's laws grant to nationals. 10. The prime interest of States shall be the conservation of peace. Differences must always be regulated by recognized pacific means. 11. States shall obligate themselves not to recognize territorial acquisitions or advantages gained by force and the territory of States shall be inviolable anknot subject to military occupation or other compulsion, even temporary. Pan-American Conference—State Department Receives Cablegram from Secretary Hull Clarifying United States Attitude on Non-Intervention—Message Indicates This Government Is Ready to Rediscuss Platt Amendment with Cuba. The State Department at Washington on Dec. 20 made public a cablegram from Secretary of State Cordell Hull, head of the United States delegation to the Pan American Conference in Montivideo, clarifying the attitude of this Government on the question of intervention, as described more briefly in earlier press advices. Secretary Hull said that among the official acts and utterances mentioned to the Conference as defining the American attitude was President Roosevelt's Warm Springs' statement of willingness to negotiate with the Cuban Government concerning the 1903 treaty containing the Platt Amendment. Mr. Hull asserted that the major problems of the Conference, so far as the United States was concerned, had been concluded. He added that the general belief in Montivideo was that the ten-day "Christmas Truce" between Plaraguay and Bolivia would end in demobilization and arbitration of the conflict that has been waged for 17 months. The announcement issued by the State Department said: The subcommittee on the rights and duties of States at the seventh conference of American States on Dec. 19 presented its report to the full committee. It contained the following article: "Article 8. No State has the right to intervene ln the internal or external affair of another." Secretary Hull. Chairman of the American delegation, reports that the vote of the American delegation was as follows, with the reservation that follows it, to wit: "I vote in favor of the first ten articles, subject to the terms of the statement and declaration I made to this meeting a few minutes ago. "The policy and attitude of the United States Government toward every Important phase of international relationships in this hemisphere could scarcely be made more clear and definite than they have been made by both word and action, especially since March 4. I have no disposition therefore, to indulge in any repetition or rehearsal of these acts and utterances and shall not do so. "Every observing person must by this time thoroughly understand that under the Roosevelt Administration the United States Government is as inuel: opposed as any other Government to interference with the freedom, the sovereignty or other internal affairs or processes of the Governments of other nations. "In addition to numerous acts and utterances in connection with the carrying out of these doctrines and policies, President Roosevelt during recent weeks gave out a public statement expressing his disposition to open negotiations with the Cuban Government for the purpose of dealing with the treaty which has existed since 1903. "I feel safe in undertaking to say that, under our support of the general principle of non-intervention as has been suggested, no Government need fear any intervention on the part of the United States under the Roosevelt Administration. "I think it probably unfortunate that during the brief period of this conference there is apparently not time within which to prepare interpretations and definitions of these fundamental terms that are embraced in the report. Such definitions and interpretations would enable every Government to proceed in a uniform way without any difference of opinion or of Interpretations. I hope that at the earliest possible date such very important work will be done. "In the meantime, in case of differences of interpretations and also until they can be worked out and codified for the common use of every Government, I desire to say that the United States Government in all of its international associations and relationships and conducts will follow scrupulously the doctrines and policies which it has pursued since March 4, which are embcdied in the different addresses of President Roosevelt since that time and in the recent peace address of myself on the 15th day of December before this conference and in the law of nations as generally recognized and accepted." Pan-American Conference—Favor Treaty Guaranteeing Equal Nationality Rights for Women—To Recommend•Civil and Political Parity Also—Many Nations to Sign Citizenship Pact—United States Opposes Continuation of Women's Commission. A victory for the proponents of women's political and social equality was recorded at the Pan-American Conference in Montevideo on Dec. 16, when the delegates voted to submit to their respective Governments a treaty guaranteeing equal nationality rights and to recommend that all countries grant equal civil and political rights as soon as possible. The Conference also approved a resolution to continue the 4451 existence of the Inter-American Commission of Women to aid the American Governments in achieving this goal of equality and to investigate other problems of women. The only opposition to this program came from the United States delegation. Alexander W. Weddell, Ambassador to Argentina and member of the delegation, read an address in Spanish in which he said that the United States regarded the work of the Women's Commission as completed, and would therefore dissociate itself from the activities of the Commission in the future. The United States, he added, is now codifying nationality laws and removing the final vestiges of discrimination. Mr. Weddell's remarks,and the action taken by the Conference on Dec. 16 were contained in a Montevideo dispatch of that date to the New York "Times," from which we quote, in part: Civil and political rights Mr. Weddell pointed out, were within the province of State legislation and the Federal Government could not bind the States by subscribing to a treaty. As a friendly gesture, the United States delegation abstained from voting in the Committee where the report adopted by to-day's plenary session was approved, except in favor of a vote of thanks to the Commission for its efforts and its report. The only other vote against any other part of the program was cast by Argentina against continuing the Commission. In recording the votes of their delegations, 11 nations announced they would sign the nationality treaty. This will be the first international convention ever signed on the subject of equal rights for women, according to feminist leaders here. The countries declaring their intention to stn were Ecuador, Peru, the Dominician Republic, Mexico, El Salvador, Chile, Cuba, Haiti, Bolivia, Uruguay and Paraguay. Nicaragua joined the United States in abstaining from voting on the nationality treaty, expressing regret at her inability to subscribe and referring to a constitutional amendment under consideration at home to solve the problem. Other delegations recorded reservations with their promises to sign the nationality treaty, principally concerning constitutional limitations. For example, Antoine Pierre-Paul referred to the Haitian constitutional provision admitting any one of the African race to Haitian nationality. Cuba, Ecuador, Paraguay and Uruguay voted against the Committee's recommendation on equal civil and political rights as a protest that no treaty was proposed. Their spokesmen intimated that those countries would sign such a treaty immediately, inviting other nations to adhere. Mr. Weddell explained that the United States attitude was the result of Ironclad instructions from Washington. It was the first instance at this Conference in which the United States has departed from the majority program. The United States feminists here attribute the delegation's instructions to pressure from the League of Women Voters, which is said to oppose equal rights as endangering the special privileges wanted, such as mothers' pensions, dm. Mr. Weddell's speech to-day, however, was not aggressive in its opposition. He paid tribute to the work of Secretary of Labor Frances Perkins, Senator Hattie W. Caraway and other women in public life in the United States, saying women's position on equal rights was "an old story" at home. He said the Washington Government intended to carry on codifying researches by its own agencies with a view to assuring the most complete equality possible. Women's Rights Last on Agenda. The report of the Committee on Women's Rights was the last item to come before the plenary session. Miss Doris Stevens, Chairman of the InterAmerican Commission of Women, introduced five members of the Commission, who took the floor with the special permission of the Steering Committee. After Minerva Bernardino of the Dominican Republic, Anna Rosa Tronero of Bolivia, Dania Padilla de Rubio of Cuba, Clara Elisa Salterim of Uruguay and 3fargrita Mendoza of Mexico had thanked the Conference, Miss Stevens took issue with Mr. Weddell's speech in committee this morning. She said Mr. Weddell had conveyed the impression that the women of the United States preferred to work State by State. She read a long cable citing women's organizations which had urged President Roosevelt to support the nationality treaty and favoring international action. These organizations included the National Council of Women, described as the world's oldest feminist organization; the National Association of Women Lawyers and the National Women's Medical Association. Cites Support in Congress. Miss Stevens read another cable, saying that all women members of the United States Congress had asked the President to support an equal nationality rights treaty. "This is an historic moment which those coming after us will appreciate better than we," she said. "The nationality treaty you have voted to-day is the first ever granted to women. I am sorry you could not go the whole way and settle their civil and political rights, but that will have to wait until another time." The women speakers expressed their thanks to an almost exclusively masculine assemblage. The Conference's only three women delegates, Dr. Sophonlabs P. Breckinridge of the United States, Senora Sofia Alvarez Vignoly de Demichelli of Uruguay and Felicidad Gonzalez of Paraguay, were in their seats to hear the women's program approved. Despite the United States's abstention from voting on the women's program this morning, Secretary Hull applauded the women speakers as they took the rostrum. Mrs. Hull, Mrs. Weddell, Mrs. J. Butler Wright and the wives of others in the United States group were in the galleries. Pan-American Conference—United States Will Sign Women'sIEquals Nationality Treaty—Announcement, Made on Instructions from President Roosevelt, Reverses Original Stand. The United States delegation to the seventh Pan-American Conference at Montivideo announced on Dec. 20 that, at the request of President Roosevelt, it would sign the treaty guaranteeing equal nationality rights to women, accompanying the signature with a reservation providing that "agreement of the United States is, of course and of necessity, sub- 4452 Financial Chronicle ject to Congressional action." This step on the part of the United States delegation reversed the original stand of Alexander W. Weddell, Ambassador to Argentina, that this country would not sign the treaty after having abstained from voting on it in committee. The action of the delegation makes probable the signature of the treaty by all 21 American Republics, and marks a distinct advance in women's rights in Latin America. The decision was heartily praised •by Miss Doris Stevens, Chairman of the Inter-American Commission of Women, and by leading members of the National Woman's Party in the United States. United States-Colombia Trade Agreement Signed at Washington—Pact, Based on Reciprocal Concessions, Is Believed Forerunner of Other Similar Commercial Treaties. A new commercial treaty between the United States and Colombia, based on reciprocal trade advantages, was signed at the State Department in Washington on Dec. 15 by Dr. Fabio Lozano, Colombian Minister and Acting Secretary Phillips. This was the first of a number of similar agreements contemplated by the State Department and was concluded after negotiations lasting three months. It was the first commercial pact to be arranged with Colombia since 1856, when a treaty of commerce and friendship was signed by the two countries. Negotiations are now being carried on in Washington with Brazil, Argentina, Sweden and Portugal. The Colombian pact provides for the importation of certain specified products into the United States free of duty, together with sharp reductions in excise taxes. Colombia, in turn, agrees to reduce its duties on certain products from the United States, and will not increase the rates in the future on certain other specified articles. The State Department did not make public a list of the products covered by the agreement. The following joint statement was issued on Dec. 15 by Acting Secretary Phillips and the Colombian Minister: The Acting Secretary of State and the Minister of Colombia to-day signed The agreement will come into force after the necessary legislative action shall have been taken in the United States and Colombia. The minimum term of the agreement is two years from the date of its coming into force. On the part of the United States the agreement provides that certain specified products of Colombia shall continue to be exempt from import duties. Federal excise taxes and prohibitions on importation and also that State excise taxes affecting Inter-State or foreign commerce, in so far as they are subject to statutory control by the Federal Government,shall not exceed the maximum tax at present levied by any State. The agreement provides that Colombia on its part will reduce its customs duties on specified products from the United States and will refrain from Increasing them on certain other specified products. As regards the products listed in the agreement Colombia makes commitments with respect to internal taxes and prohibitions similar to those made by the United States. This agreement, which is of mutual benefit to the two countries,furnishes a practical example of the policy of "neighborliness" in the American continents, and it is hoped may lead to other libateral agreements of a similar nature having as their object the restoration and improvement of trade relations. a reciprocal trade agreement. Pan-American Conference—Head of Cuban Delegation Charges United States Has Intervened in Attempting to Dictate Form of Government—Argentine Committee Chairman Halts Remarks—Policy of Secrecy Assailed. A charge that the United States was actively intervening In Cuban affairs was made before the Pan-American Conference at Montevideo on Dec. 14 by Angel Giraudy, head of the Cuban delegation. The criticism of the United States was made during the session of the Committee on New Economic Matters, which was considering Secretary Cordell Hull's proposals to reduce trade barriers in the Western Hemisphere. Alfonso Lopez of Cuba had demanded that the Hull project receive complete discussion rather than being referred to a subcommittee for secret study. Senor Giraudy's remarks were prompted by a statement by Senor Lopez that the United States had not intervened in Cuba. His denunciation of the United States policy was finally halted by Foreign Minister Carlos Saavedra Lamas of Argentina, Chairman of the Committee, who said that he would not permit such remarks. We quote from a Montevideo dispatch of Dec. 14 to the New York "Times" regarding the speech of Senor Loper and subsequent proceedings: "It is of the greatest importance that it should not be lost in the silence of a subcommittee," he said. "As Dr. Puig Casauranc [the Mexican Foreign Minister] said with great courage yesterday, the London Conference failed because o! the secrecy of its proceedings. "So far, as soon as any topic has shown up that might stir up a debate at this Conference, it has been immediately postponed or relegated to a subcommittee. Now the Secretary-General has taken it upon himself in advance of the Steering Committee meeting to suggest that this Conference terminate on Dec. 24. Dec. 23 1933 Fears Shelving of All Projects. "If the present system continues the only result of the seventh Pon-American Conference will be a resolution to this effect: "Resolved, That the Seventh Pan-American Conference entrust to the next Pan-American Conference all problems submitted to this Conference." "Some have said it was useless to hold this Conference, recalling the London failure a few months before, but the United States now seems about to take a new course and to modify her tariff policy. The statements of the United States delegation have been made in a very intelligent manner and imply a reaction from the course followed at London. "The tendency in Europe is toward higher tariffs. The tendency of the United States seems to be turning away from this. Colombia already haa reached an understanding with the United States. "In the Steering Committee the other day Mr. Hull made a transcendental declaration when he said his Government would not intervene in favor of the international bankers who now stand before the United States Senate, but who not long ago were advance agents of what the world has known as dollar diplomacy. "It may also be seen by her non-intervention in Cuba that the United States is beginning to feel in economic and political problems more in accordance with the wishes of the people of the Americas. "My country was ready to second Mr. Hull's motion for general scaling down of tariffs, if it had been made; and if I asked the opinion of my Government it probably would reply it was ready to collaborate in every way with the United States in removing obstacles to trade. "We must have free and open discussion of these important problems." Cuban Assails United States. Senor Giraudy then arose to say: "The delegate from Colombia has made a beautiful declaration regarding Pan-Americanism. The people of Cuba want the friendship of the people of the United States, but we cannot remain silent when it is here affirmed that the United States has not intervened and does not now intervene in Cuba. "If intervention means only that a nation sends its soldiers into the territory of another, then non-intervention by the United States may be true. But if intervention means that representatives of the United States may be upholding part of the people of Cuba against another part, then the United States has intervened indisputably. If it is not intervention to surround our island with warships and to impose upon us a Government we do not want, then there has never been any intervention in the Americas. "We want to be allowed to choose our own Government. We do not want a Government chosen by the United States. I affirm here and now that the United States has been intervening by not allowing our people to choose freely their own Government and by not giving approbation to the Government we want." Chairman Rebukes Giraudy. Senor Giraudy's remarks brought forth a sharp rebuke from Senor Saavedra Lamas, presiding, who said the Cuban's discourse had nothing to do with the subject under discussion and asked the delegates to refrain from discussing extraneous matters in his Committee. Senor Lopez's motion for open discussion was then seconded and approved, this being the first time an important project has not been shunted into the secrecy of a subcommittee. Republic of El Salvador Deposits 83% of Outstanding Bonds with Bondholders Committee for Payments as of Jan. 1. What is believed to be the largest percentage of deposits of a foreign bond ever obtained by a protective committee in the United States has been received by the Bondholders Committee for the Republic of El Salvador, of which J. Lawrence Gilson, Vice-President of the Manufacturers Trust Co., New York, is Chairman and Douglas Bradford, 120 Wall St., Secretary. The Committee in announcing the payments to bondholders as of Jan. 1 1934 revetiled that more than 83% of all the bonds outstanding have been deposited to date. The report shows that 86.56% of the series "A" bonds, or a total of $3,124,000; 91.31% of the series "B" (sterling), or £816,160, and 78.04% of the sines "C", or $7,032,500, have been deposited. These figures include bonds of series "B" deposited with the Council of Foreign Bondholders, London. Pursuant to the agreement with the Republic of El Salvador, it was announced, depositing bondholders will receive the following amounts on ,Jan. 1 1934: On bonds of series "A". $34 In payment of the maturing coupon for each $1.0n 0 bonds of series "D", £2-11s In payment of the maturing coupon for each £100 bond, and also certificates of preferred interest for a which the Republic has agreed to issue in exchange for the coupon which matured Jan. 11933. On bonds of series "C",$14.80 in payment of60% of the maturing coupon for each $1,000 bond, and also certificates of deferred interest which the Republic has agreed to issue In exchange for certain coupons, for the following amounts: $35.00 representing coupon which matured July 1 1932. $35.00 representing coupon which matured Jan. 1 1933. $17.50 representing 50% of coupon which matured July 1 1933. $17.50 representing 60% of coupon which matures Jan. 1 1934. Several investment houses plan to provide a market for the certificates of deferred interest issued on the series "C" bonds. Bolivia and Paraguay Agree to Armistice in Chaco War Until Dec. 31—Truce to Negotiate Peace Was Offered by Paraguay After Victory Over Bolivian Troops—Uruguay Mediates on Behalf of Pan American Conference. An armistice has been concluded in the Chaco war between Bolivia and Paraguay, with a truce beginning at 2 a. m. on Dec. 19 and ending, unless peace is negotiated in the meantime, at 2 a. m., Dec. 31. Announcement of the Volume 137 Financial Chronicle armistice offer by Paraguay to Bolivia was made on Dec. 18 by Alberto Mane of Uruguay, Chairman of the Seventh Pan American Conference in session at Montevideo, and Foreign Minister Justo Benitez of Paraguay confirmed the announcement. More than 100,000 casualties have been recorded in the fighting during the past year and a half. The armistice was a sequel of a Paraguayan offensive in which the Paraguayans captured several forts held by the Bolivians and more than 10,000 prisoners. A dispatch to the New York "Times" from Montevideo on Dec. 19 described the peace proposals as follows: Senor Mane expressed the hope that a definite peace treaty terminating the Chaco war would be signed at a solemn session of the Pan-American Conference. If there is any probability of this happening it is likely that the Conference will be extended beyond Christmas. It was pointed out that the steering committee has not fixed a closing date. although Dec. 24 has often been mentioned as probable. Peace Resolution Reworded. The Foreign Ministers and other chiefs of delegations met with Senor Mane this morning on Secretary Cordell Hull's suggestion to modify a resolution whereby the Conference would agree to support the League of Nations in applying sanctions to the combatants. The second paragraph was rephrased on motion of Mr. Hull and Senor Mello Franco of Brazil to say that the countries represented at the Pan-American Conference express their willingness to support within the limits of their own circumstances and National policies any plan agreed upon for settling the Chaco war. The revised motion will come before the peace committee to-morrow. Although it does not now specifically mention the League of Nations it is the Conference's plan to apply League sanction if Bolivia and Paraguay refuse to accept a peace proposal. The resolution, as now worded. Permits Brazil and the United States, who are not members of the League,to refrain from supporting the League sanctions if the other member governments agree to apply them. Mr. Hull is enthuaslastic over the prospects of peace. "If we achieve peace in the Chaco, this will be the greatest conference of all time," he declared. Hiroshi Saito to Be New Japanese Ambassador to United States—Successor to Katsuji Debuchi Was Formerly Consul-General in New York—New Envoy Is Only 47. Hiroshi Saito, present Japanese Minister to the Netherlands, was selected by the Japanese Cabinet on Dec. 16 as Ambassador to the United States to succeed Katsuji Debuchi, who resigned upon his return to Tokio last week. Mr. Saito Is well known in the United States, having served as ConsulGeneral both in New York and in California, as well as at the Embassy in Wadhington. He was a member of the Japanese delegation to the Washington Arms Conference. Commenting on the appointment,a copyright dispatch from Tokio to the New York "Herald Tribune," on Dec. 16, said, in part: The selection of Mr. Saito, who is only 47 years old and the youngest man ever picked for the post, over the heads of some 20 seniors, is unprecedented in the Japanese foreign service and is considered as ushering in a new policy of selecting men according to ability instead of seniority, which has largely regulated the choice of envoys in the past. Mr. Saito has strong backing from the military authorities, who put forward his name. Mr. Hirota is understood to have personally favored Shigeru Yoshida, former Ambassador to Rome, while Japanese naval circles were urging the appointment of Admiral Kichisaburo Nomura. The "Rengo" Agency reports that Mr. Saito's name was submitted to the Foreign Office by the War Department last Tuesday with the accompanying recommendation: "In appointing our Ambassador to the United States at this important time, with the 1936 crisis ahead, such considerations as dignity, past career, equity and sentiment must be discarded and a man of ability chosen in the Interests of the country. In the light of these considerations, we find Hiroehi Saito, present Minister to Holland, the right person for the post." Former Ambassador Debuchi has been placed on the waiting list with nine other Ambassadors who have been recalled in the last two years. Mr. Debuchi is understood to have expressed a desire to retire from the service to make way for the promotion of younger men. Mr. Saito is regarded as particularly well qualified for the post at Washington because ot his frequent contact with the United States in the course of his career. He served as Consul in Seattle in 1921, and was Consul-General in New York in the five years from 1923 to 1928. He was appointed Secretary-General of the Japanese delegation to the London Naval Conference in 1930, serving also as interpreter to Repro Wakatsuki, former Premier and head of the delegation, who spoke no English. Later Mr. Saito was appointed counselor to the Embassy at Washington before being named Minister to the Netherlands early this year. New Commercial Treaty Negotiated Between New Zealand and Belgium—Proposes Lower Import Duties or Customs Surtaxes on Selected Products. Negotiations have been concluded for a new commercial treaty between New Zealand and Belgium, with reciprocal tariff concessions, under which the contracting countries propose to lower the import duties or customs surtaxes on selected products, including principally rubber tires, piece goods, and apples, according to a cablegram received in the United States Department of Commerce from Consul General Calvin M. Hitch, Wellington. In noting this, an announcement by the Commerce Department, dated Dec. 12, added: Under the terms of the agreement, New Zealand promises to reduce by 5% ad valorem the present import duties on shoe laces other than leather, carpets and rugs, globes and chimneys for lamps, sensitized surfaces except postal cards, rifles and other firearms, and to remove the customs 4453 surtax of 22;4% of the duty from the above products, as well as from matches, rubber tires, window and plate glass, lead and zinc in bars, rods, plates and sheets,.and textile piece goods. In return for the above porposed concessions on the part of New Zealand. Belgium promises to levy the following reduced import duties, in francs. per 100 kilos, on New Zealand products: Cheddar cheese, 72;flax yarns, 10; apples, 25. and to continue to admit wool, hides, tallow, and flax, duty free. (The United States is on a most-favored-nation basis with Belgium. Belgium is the first foreign (non-British) Government with whom New Zealand has concluded a commercial treaty. A previous commercial treaty. concluded between representatives of the two governments on Dec. 10 1931, was not submitted to the respective Parliaments for ratification.) Investigations Made of Trading in Atlas Tack Common—New York Stock Exchange and New York Attorney-General Probe Wide-Open Break—Other Investigations Rumored on Reports of Recent "Pool" Activities. Three separate investigations into the trading activities in the common stock of the Atlas Tack Corp. were conducted this week. They were under the direction of the Securities Department of the New York• State Attorney-General's office, the Business Conduct Committee of the New York Stock Exchange, and the Better Business Bureau. Announcement of the investigations followed sharp breaks in the common stock on Dec. 16 and Dec. 18. The stock rose 4 last week. On Dec. 18 the from 13' early in 1933 to 343 issue broke 109.g points and on Dec. 18 it sagged 7K3 point', closing at 143. Yesterday (Dec. 22) the stock closed at 13/. It was also reported, unofficially, that the Business Conduct Committee was investigating the trading activities in several other volatile issues, rumored to have been the objects of "pool" manipulation. The New York "Times" of Dec. 19 contained the following account of the Atlas Tack investigation: Several witnesses were examined recently by Ambrose V. McCall, Assistant Attorney-General, including one person reputed to have been the largest individual trader in the stock in the last six months. The investigation thus far has shown that fewer than 98,000 shares of the company's stock are outstanding. It was ascertained that last Friday a tipster publication in Boston broadcast a tip to its customers urging them to purchase the stock "at the market" and that a nation-wide selling campaign by telephone and telegraph was started by the same organization. It was indicated at the Attorney-General's office that the stock had been manipulated by persons who had previously come to the attention of the office in connection with similar operations. Several subpoenas were served yesterday on Stock Exchange brokers by the Attorney-General's office, and it was announced that some of the directors and officers of the corporation will be questioned to-day. Profit After Heavy Losses. For the first nine months of this year, the company reported a net profit of $71,700, equivalent to 77 cents a share on 93,441 shares of stock. In the preceding three years, however, the company lost heavily. Mr. Tichenor said that company's business had improved of late and that it was making money in the manufacture of beer-bottle caps. He said the company's plant at Fairhaven, Mass., was valued at about $2.500.000 and that the company made a profit of 871,000 in the last nine months. Data in Boston Sought. Others who were questioned yesterday were Philip H. Philbin, 52 Wall Street. and H. B. Benedict of the Stock Exchange firm of Hornblower & Weeks. Mr. McCall would not divulge any of the testimony, but said he sent a telegram to John C. Hull of the Securities Division of the Department of Public Utilities of Massachusetts requesting his co-operation in the Boston end of the investigation. He said he also telegraphed to Ralph Hornblower of Hornblower & Weeks in Boston asking that he appear here for examination. Mr. McCall said Francis D. Gallatin, former Park Commissioner, a director of the corporation, would appear voluntarily at the State Bureau offices for questioning. According to Mr. McCall, while the investigation was in progress investigators traced telephone calls recommending purchase of the stock to the office of a financial service company in Boston. The firm's telephone service has since been discontinued and the instruments removed. The "Times" of Dec. 21 gave the following additional details: New interests entered the management of the company last September, when six directors were added to the board. A month later, Kermit Roosevelt,son of the late President Roosevelt and John Sargent of Boston were elected directors. Late in October the company announced that it had installed machinery for making bottling caps for the liquor and brewery trades. Last week a statement was made that the directors had called a special meeting to take action on a proposal to split the stock on a basis of three new shares for each old share. "Company officials have not been operating in the market for the stock," was the statement attributed to Walter Kilvert,President ofthe corporation. From the "Times" of Dec. 20 we quote regarding the result of the preceding day's investigation: Among those questioned yesterday by Mr. McCall was Frank Tichenor, magazine publisher. He appeared at the Bureau offices, 80 Centre Street. Mr. Tichenor, a director of the corporation, told reporters that none of those connected with the company had anything to do with any manipulation of the stock. He declared that the stock activity and the range in price were due to the efforts of one brokerage concern, which at one time controlled heavy holdings in the stock, to get back to that position in competition with another brokerage house. Assistant Attorney-Generals McCall and Gruber, who are investigating the Atlas Tack Co.. announced yesterday that they would question to-day "a Mr. Newton" of the Stock Exchange firm of Boettcher, Newton & Co. and Ralph Hornblower. a former director of the Atlas Tack Co. The latter Kermit Roosevelt, son said he would come here from Boston to testify. of the late President Theodore Roosevelt, will be questioned this morning. 4454 Financial Chronicle Mr. McCall said. Mr. Roosevelt became a director of•the company last September. Officers Fail to Appear. Mr. McCall waited yesterday for the appearance of Walter Kilvert, President of Atlas Tack, and D. G. Robbin, Secretary of the company, but the two officers did not appear. They had been invited on Tuesday to appear at the office for questioning. Control of the Atlas Tack Corporation was bought last July by Philip H. Philbin and his associates from Ralph Hornblower of Hornblower St Weeks and other Boston interests. The firm of Hornblower Sz Weeks was not interested in the stock, it was said, and Mr. Hornblower's stock was held for his own account. .Spokesmen for the firm denied that its partners had been connected in any way with a market operation in the stock. The Phllbin group is said to have bought about 50,000 shares of stock at $10 a share. This represented a majority of the stock, since there are less than 100.000 shares outstanding. In September, six new directors were elected, and in October Mr. Roosevelt and John Sargent of Boston joined the board. Mr. Hornblower and his associates had acquired their interest in the company about six years ago. In recent years Boston interests have dominated in the management. In recent months, brokers say, trading records In the Atlas stock have shown a large volume of small buying orders by the public. The holdings of H. H. Rogers in the company were sold through Hornblower St Weeks in 1919. The New York "Herald Tribune" of Dec. 22 noted the preceding day's examination as follows: Ralph Hornblower, a former director, of Boston; Kermit Roosevelt, a director, and Goodhue Livingston, Jr., a director, voluntarily appeared yesterday morning, and they were followed by George Graham Rice, recently imprisoned for mail fraud, who also appeared at his own request. Mr. Livingston said last night that he had no general statement to make except that he knew "nothing about any manipulation and was heartily in favor of the investigation." Mr. Roosevelt, President of the Roosevelt Steamship Co., said that in appearing before Mr. McCall, he told the Assistant Attorney-General that any comment concerning his testimony would have to come from Mr. McCall. Mr. Rice, who appeared because of alleged reports that his name had been linked with the inquiry, said that he had absolutely nothing to do with the Atlas Tack Corp. The inquiry, according to Mr. McCall, has uncovered widespread tipping of the stock and some alleged manipulation. The tips were made by telephone, according to the present information, but Mr. McCall, in his search for a violation of the Martin Act, hopes to find some use of the mails. Be has asked that any letters received in regard to the stock be forwarded to him. Walter Kilvert, President of the Atlas Tack Corp., was examined by Mr. McCall for more than an hour yesterday (Dec. 22). Newspapers reported that Mr. Kilvert testified that he has been occupied in the manufacturing branch of the corporation and did not know the details of alleged stock "boosting" operations. Senate Inquiry Into Stock Market Trading—Investigation Into Detroit Banking—Operations of Guardian Detroit Union Group and of Ford's Described. Inquiry into the Detroit banking situation was begun at Washington, Dec. 18, by the Senate Banking and Currency Committee investigating stock market trading. The committee, according to the Associated Press, received testimony that the Guardian Detroit Union Group, Inc., the directorate of which included Edsel Ford, dictated dividends to be paid by subsidiaries regardless of earnings. The Associated Press added: Repeated denials from Robert 0. Lord, former President of the group, that such a course was followed were countered by Ferdinand Pecora, Committee counsel, with the introduction of letters sent heads of subsidiaries by Mr. Lord "suggesting" the dividend rate to be declared. From the Washington advices, Dec. 19, to the New York "Times" we take the following: Mr. Pecora presented photostatic copies of letters from Mr. Lord to Presidents of various unit banks suggesting the dividend rates they should declare and showing that in several instances dividends were set, although the Presidents of the units questioned the wisdom of declaring them out of undivided profits when, in their opinions, the subsidiaries were not at the time earning enough money to justify action. Letters Offered to Committee. IF According to the exhibits, on June 4 1930, Mr. Lord wrote to John N. saying in Stalker, President of the Union Guardian Trust Co., Detroit, part: Detroit Union To provide for the dividend requirement of the Guardian divias of an annual disbursement of $3.20 per share, awould group, on the basis I board. your of meeting June the at declared be dend should to board a declare your for order suggest therefore, that it would be in quarterly dividend equal to 20% annually. stockto 1930, 27 June than later not payable This dividend should be holders of record June 16, and a check for $248,024, covering the shares outstanding in the name of Guardian Union Group,Inc., as well as directors' qualifying shares, the dividends of which have been assigned to us, should be in the hands of B. li.„ Patterson. Treasurer, on the 27th inst. It VMS shown that Mr. Stalker replied on June 5 that "a dividend of this amount has not been earned." and in addition, "the trust company is setting up no reserves and we feel that it is not as it should be." "There is no doubt in my mind," Mr. Stalker added,"that the company will suffer some losses." Board Control Challenged. The letters indicated other cases of a similar nature with other banks controlled by the group. Mr. Pecora contended that the group's set-up put it in position to dictate the personnel of boards of directors of all its unit banks. "I don't know who else could," Mr. Lord said, "for they were stockholders." Directors of subsidiary units of the Guardian Detroit Union Group were required to sign waivers giving up their stock when they retired for group as directors, turning it over to the holding company in return stock, Mr. Lord admitted. Dec. 23 1933 "Now, what was the reason for that?" asked Mr. Pecora. "I suppose because there was no desire to have the stock floating around loose," the witness replied. "The purpose was that no former director should either profit or lose by the ownership of those directors' shares." Fords Put Up Millions. Describing the battle of the group against the depression after the market crash of 1929, Mr. Lord testified that its larger stockholders contributed $27.000,000 in an effort to bolster up the system "in the protection of the depositors." Edsel B. Ford, President of the Ford Motor Co.. contributed $8,500,000 and the Ford Motor Co., $3,500,000. "Late in 1930," Mr. Lord said, "Edsel B. Ford loaned to the Guardian Detroit Co. $1,000,000 in cash and also loaned to that same corporation approximately $5,000,000 of his personal securities. In December 1931, he loaned his credit to the group company on a loan of $2,500,000 with the Continental Bank in Chicago. "The Ford Motor Co. in December 1932, loaned to the group company $3.500,000 with which funds the group company lifted out of the Union Guardian Trust Co. $3,000,000 of criticized assets." Senator Couzens developed from Mr. Lord the admission that out of the $27,000,000 which the large stockholders contributed only $12.000,000 went for the protection of depositors, and the rest for the protection of the stockholders. $90,000,000 in Unpaid Deposits. Mr. Lord told the committee that about $90,000,000 of deposits in'the unit banks combined in the Guardian Detroit Union Group,kInc.lremain unpaid. After the consolidation of the Guardian Detroit Group and the Union Commerce Group into the Guardian Detroit Union Group, a holding company for more than 30 units, the resources reached a peak of more than $500,000,000, and the deposits ran upward of $420,000,000. "You mean to say the depositors have lost $90,000,0002" Senator Fletcher asked. "They have not lost it," replied Mr. Lord, "because that is in course of liquidation in the banks." Mistakes had been made, the witness admitted. "Broadly speaking." he said, "the greatest mistake of the group was that it was organized at the peak of the nation's prosperity—that we along with others were unable to foresee the conditions which were to follow that long period of prosperity and expansion of business. During the entire history of the group it was engaged against a depression probably never before equaled in severity in the world, and the consequences of which were felt more acutely in Michigan and Detroit than in any other section of the country." Word "Prosperity" Questioned. "Is 'prosperity' quite the correct term for what was existing at that timer" asked Senator Adams. "I considered that there was prosperity until the summer of 1929," the witness replied. "Everybody thought they were rich. Maybe they were not." "It was the 'national delusion' rather," the Senator suggested. "I think you are right," said Mr. Lord. Other mistakes were made, Mr. Lord admitted, in reply to Mr. Pecora. One was the making of a substantial amount of mortgage loans by the commercial banks, he said. Another was "that we did not liquidate our securities companies immtdiately in 1929." But, in a statement read to the committee, the witness said the group also had accomplished "some helpful and constructive things," among them its purchase from 1930 to 1933 of nearly $8,400,000 of slow or undesirable assets from the unit banks and trust companies. The Guardian National Bank of Commerce, the largest unit, was described as a consolidation of the Guardian National Bank, Bank of Detroit and the National Bank of Commerce. Payments Made to Depositors. "When these three banks were separate institutions," said Mr. Lord, "they reported on Dec. 31 1929. total deposits of $190.609,633.78. When the final consolidation was completed Dec. 31 1931, the deposits were $169,058,328.36. On Dec. 31 1932, deposits were $138,385,923.37. After the bank had been refused a license to reopen after the holiday and was in the hands of a receiver, 40% was paid to the depositors by the middle of 1933. Since then an additional 20% has been paid. Plans are being completed for an additional 5%. "In paying and completing the 40%, the RFC loaned the receivers of the Guardian National Bank of Commerce $4,391,000—odd. The National Bank of Detroit had, when it opened, brought about $13,000,000 of the loans which enabled the 40% payment, and by the end of the summer the RFC loan had been paid back in full and most of the loans taken by the National Bank of Detroit had been liquidated. "In my opinion, with proper handling of remaining assets and any reasonable recovery of business, the depositors will receive 100 cents on the dollar." Bank Examiners Became Officers. Mr. Lord testified that as President of the Guardian Detroit Bank in 1927 he received a salary of $29,176 for seven months' service, and $50.010 in 1928. After that his compensation, paid partly by the group and Partly by some of its units, was $84,759 in 1929. $55.999 in 1930, $48.333 in 1931 and $45.479 in 1932. Four former national bank examiners, the witness told Mr. Pecora under questioning, had been made officers of the Guardian Detroit Union or some of its subsidiaries. They were Bert K. Patterson, former Chief Examiner for the Detroit district, who became Vice-President of the Guardian Detroit Union group; R. L. Hopkins, Vice-President of the Union Industrial and Savings Bank of Flint, Mich.; 0. A. Bryan, Vice-President of the Capital National Bank at Lansing, Mich., and W. J. Penningroth, Vice-President of the First National Bank St Trust Co. of Niles, Mich. The examination of Mr. Lord will be resumed to-morrow. Chairman Fletcher announced that the following have been subpoenaed to testify in the Guardian Detroit Union group investigation: Charles S. Mott, Henry E. Bodman, James L. Walsh, Herbert R. Wilkins. Frank W. Blair, Carlton M.Higble, Clifford B. Longley, Ralph E. Badger, Harry S. Covington, John N.Stalker, William Eubank, Bert K.Patterson, Alfred P. Leyburn, Ernest Kangler, George R. Fink, and R. E. Hofelich. At the hearing on Dec. 20 evidence that banks in the Guardian Detroit Union Group made condition reports showing "no bills payable," although the facts were otherwise, was developed before the committee it was stated in the "Times" account that day, which continues: Robert 0. Lord, former President of the group, admitted this after being reminded by Senator Couzens that he was under oath. Bookkeeping methods were used by which bills payable were taken care of temporarily to make it unnecessary to show those bills payable Volume 137 Financial Chronicle In published reports of condition by the 23 banks in the group's system. This was usually accomplished. Mr. Lord testified, either by the Guardian Detroit Bank's buying some of the assets of the member banks and supplying them with cash or depositing funds in the form of certificates of deposit. "The bankers had very foolishly educated the public on the question of the criticism of the banks when they showed borrowed money," he asserted. "And," interposed Senator Couzens,"so as to overcome that you created a device to hide it?" "I would not call it a device." Mr. Lord rejoined. Hint of Calling Edsel Ford. "Well," exclaimed the Senator, "I think that the record shows clearly it was a device because you yourself testified, without going into specific cases, that you made every effort to avoid showing bills payable." "We did, sir," the witness said. The testimony of Mr. Lord was given with seeming reluctance and his admissions were obtained with considerable difficulty after persistent questioning by Ferdinand Pecora, committee counsel,and Senator Cowen's. The Department of Justice is closely following the testimony being given in the investigation of the financial situation in Detroit. John S. hearing. Pratt, Special Assistant to the Attorney-General,attended to-day's Senate investigators intimated to-day that Edsel B. Ford, President of the Ford Motor Co., who was mentioned prominently in yesterday's testimony, might be asked to testify. Mr. Pecora said he saw no present necessity for summoning Mr. Ford, but that if later developments warranted the action, a subpoena would be issued. Reports were also current that former President Hoover's actions in his connection with the banking situation at Detroit toward the end of administration would be gone into by the' committee, but Mr. Pecora said no such decision had been reached. Sent Report to Other Banks. system Mr. Lord's admission as to the method by which banks in the introduction could show "no bills payable" in their public reports followed diby Mr. Pecora of an "Intra-group memorandum" from Mr. Lord to rectors of the Guardian Detroit Bank. 1931, 2 Jan. newspapers This told of a news item appearing in Detroit to the effect that deposits of the Guardian Detroit Bank had increased $9,500,000 in the preceding three months to a "new peak of $124,096.976." of this Mr. Lord's memorandum informed the directors that clippings news item had been sent to bankers with whom "Guardian maintains banking relationships—with the additional information that all of the Group, 23 banks and trust companies comprising Guardian Detroit Union Inc., showed on Dec. 31 1930. 'bills payable none'." The word "none" was italicized. Attached to Mr. Lord's memorandum were extracts from letters of executive officers of 59 banks or other corporations and one from R. E Mr. Reichert, Michigan State Banking Commissioner, congratulating companies Lord on the statement that "not any of the 23 banks and trust bank other any or Bank comprising your group owe the Federal Reserve a single penny." the NaThere were letters from Gordon Rentschler, then President of National, tional City; Richard R. Hunter, Vice-President of the Chase from a another and America, 0. W. Banta, Vice-President of the Bank of Mr. Vice-President of the Irving Trust Co. The latter congratulated Lord that the banks in the Guardian Detroit Union group "were completely out of debt at the close of 1930." Senator Couzens.—Was that a fact, Mr. Lord, that all your banks were out of debt? A. Certainly—except to the depositors. Senator Couzens.—We will see about that later. Questioned on Bills Payable. After reading Mr. Banta's letter saying that the showing of the 23 banks in the Guardian Group was "little short of miraculous," Mr. Pecora suddenly asked: "Was it true that all the unit banks of the group had no bills payable?" "I assume it was, if those were their published statements," said Mr. Lord. Q. In this intra-group memorandum you say "all the 23 banks and trust companies comprising Guardian Detroit Union Group, Inc., showed on Dec. 31 1930, 'bills payable, none'." A. I assume that is correct. Q. You prepared this memorandum and had it issued? A. I assume it was correct at the time, yes. I have no reason to believe it was not. Senator Couzens.—You had no other information, other than was contained in the published statement; is that correct? A. I had a lot of other information about all the banks. Q. Among that lot of other information you had, did you have any information to sustain your contention that there were no bills payable in any of those 23 constituent units of yours? You remember, now. Mr. Lord, and I want to remind you, that you are under oath. I want to know whether you had any information outside of the published statements as to whether or not any of these 23 units had bills payable on Dec. on 31 1930. A. If that statement was made, it was made in good faith the basis of the information I had. think I A. fact? in true, was Q. Do you now believe that the statement it was, or it would not have been stated. Mr. Pecora introduced at this point the annual report issued by the the Guardian Detroit Union Group as of Dec. 31 1930, which, under caption "Aggregate Resources and Liabilities of Banks and Trust Compaypanies Affiliated With Guardian Detroit Union Group," listed "bills able, none," under the heading of "liabilities." Supplied Units with Cash. part of "Now, will you tell whether there was a settled policy on the any time in their the group to have its unit banks show no bills payable at statements or reports?" no bills payable, or to "It was a settled policy of the banks to show "It was keep them at a minimum at all times," the witness replied. showing a the policy of the group that the units should make satisfactory on the date of the statements." be to satisdesigned showing satisfactory Mr. Pecora.—Well, was that factory despite the facts? A. I would not think so. time unit banks Q. Can you tell this committee whether, about the Banking Department or the were about to be examined by the State to publish they were expected whrn about Comptroller of the Currency, or of some method, device or reports, they owed bills, but by the adoption taken care of so that they MOMS, those bills payable were temporarily the bank or in any published would not be shown upon an examination of an examination is to be when report of condition? A. No bank knows made, so that it would not be possible. A. The Q. How about when banks were about to make statements? statement. effort was made at all times to make a good 4455 Q. From time to time your unit banks were required to publish reports of condition? A. Yes. Q. At any of those times did any of those unit banks have bills payable which were taken care of temporarily in some fashion so as to make it unnecessary to show those bills payable in published reports of condition? A. Yes. Q. How was that done? A. It was done usually by either the Guardian Detroit Bank buying some of their assets and supplying them with cash, or depositing funds in the form of certificates of deposit. Q. What was the reason for doing that? A. That the bank should make an excellent showing. "Was one of the reasons," Mr. Pecora asked. "to enable the unit banks to make reports which would show no bills payable, despite the fact that there were actually bills payable?" "Yes," Mr. Lord admitted, adding that the practice in question was "fairly universal," and that "with the public fear and distrust and the complex of panic, it was necessary for every bank to make the best showing It possibly could at the time of publication of statements." Units' Dividends Taken Up. Much of the day was devoted to the further examination of Mr. Lord relative to the action of Guardian Group officials calling upon subsidiaries to declare dividends to enable the parent company to pay the dividends it wished to pay on its own stock. of subsidiary A number of instances were shown in which the Presidents units protested that it would be unwise for them to adopt the suggestions insufficient were of the holding company because they felt current earnings to justify the dividends. a One unit president objected to paying a suggested dividend because bank examiner had:suggested it would be illegal at the time. bank different the Mr. Pecora introduced a statement showing that units of the groupypaid $9,744,064.09 to the parent group in 1929, 1930. Detroit 1931 and 1932, and that the cash dividends paid by the Guardian Union Group in the same period totaled $9,293,639. 21 Among the exhibits introduced by Mr. Pecora was a letter. Oct. Currency, to the 1931, from John L. Proctor, Deputy Comptroller of the one of the directors of the City National Bank & Trust Co., Niles. Mich., Guardian Detroit Union Group units. It stated that an examination completed the previous month showed that the bank's capital impaired, and that, "as the law contemplates the capital of a national bank shall be kept intact at all times, immediate steps should be taken to restore the bank's capital." to Mr. Pecora also developedlthat the Comptroller sent out a request their banks in 1932 to cut down on dividend declarations and conserve Guardian the of banks unit cash resources as much as possible. That year system had paid $663,000 in dividends to the parent group. Fifth Anniversary of Securities Market on New York Produce Exchange Celebrated Dec. 19. The Securities Market on the New York Produce Exchange celebrated its fifth anniversary Dec. 19. The Exchange announced that since its inauguration as New York's third stock exchange, on Dec. 19 1928, this market has advanced to eighth place among the securities markets of the United States in point of yearly volume, with daily sales at times exceeding half a million shares, and with volume for the year 1933 running at the rate of more than double that of 1932. The announcement by the Exchange added, in part: year of Samuel Knighton, President of the Exchange, started the sixth trading by ringing the gong on the Exchange floor at the opening. rang the At 11:45 H. H. Petry, Secretary of the Securities Market, again gong and suspended trading for a short period, at which time a large birthafter who, day cake was carried on the floor and presented to Mr. Knighton, in a short address, proceeded to cut it and distribute pieces to the members, presidency which ceremony he was assisted by William Beatty, under whose the Securities Market was started, and Herbert L. Bodman, intermediary President between Mr. Beatty and Mr. Knighton. Mr. Knighton said, in part: has been the center of "In the five years of its existence this Securities Market trading of approximately 51,000,000 shares of stock. In 1929, when all businesses in. were fluctuating, there were 18,000,000 of shares tradedand meet all obstacles and "The reason these men have been able to carry on these past five years is because weather the storms and stress of circumstances duringrock—of Justice, integrity and solid rock—a a on built was Market this Securities equity." Meeting in New York of Investment Bankers' Association's Governors on NRA Code—Further Meetings Scheduled. A report on the special two-day meeting of the Board of Governors of the Investment Bankers' Association of America, on the fair practice provisions now being drafted as a part of the basic code of investment banking, was mailed to each member of the Association by the organization's office at Chicago on Dec. 20. The meeting, held in New York, Dec. 9 and 10, is to be followed by a second meeting of the Board in January in Chicago,for the purpose of further concentrated effort on the code. "In addition to these sessions of the Board of Governors," said Robert E. Christie Jr., of New York, President of the Association, "meetings will be called in the near future in each of the Association's 16 geographic groups in the United States—only the Canadian group will be omitted—in order to give every investment banker in the United States a further opportunity to co-operate. Non-members, as well as members of the Association, will be urged to attend these group meetings, at which a preliminary draft of the fair practice provisions will be submitted. The results of these meetings will be laid before the Code Drafting Committee and then another draft will be prepared for consideration by the Board of Governors at its January meeting." Mr. Christie added: Financial Chronicle 4456 The recent meeting of the Board of Governors was a direct result of the Association's effort to include every security dealer in the United States, member and non-member alike, in this work. The Association's office combed the country for names and addresses of dealers, from the most inconspicuous one-man office to the largest organizations. To some 6,500 dealers a copy of the basic code was sent, as soon as it was approved by the President on Nov. 27. With this went a request for suggestions as to the subject matter for the fair practice provisions. The response was a mass of material, flowing into the Drafting Committee from all parts of the country. That Committee, which has for weeks been working practically day and night on the preparation of the preliminary draft of the fair practice provisions, asked the counsel of the Board of Governors in its more difficult problems, and 23 of the 39 members of the Board attended the meeting for that purpose. These men came from all parts of the United States and every section of the country was represented. Many questions as well as suggestions are put to the Drafting Committee by investment bankers. The two questions which perhaps appear most frequently are those asking if organizations should sign more than one code, and inquiries as to the expense of administering the code, which expense is to be charged to those who assent to the code. Each code covers specific types of businesses, not specific business organizations. Therefore, a stock exchange house which also does a securities business off the exchange is subject to both codes. Similarly, a commercial bank which does a securities business is subject to both the commercial and the investment banking codes. Our Board of Governors carefully considered the probable expense of administering the code, and I am assured that it can be kept at a nominal figure. When the final draft of the fair practice provisions is completed, a meeting will be called to pass upon it prior to its presentation to the NRA. Every dealer who has assented to the basic code previous to that meeting will be entitled to vote, either in person, in writing, or by proxy, on the final draft of the fair practice provisions. I would, therefore, urge every investment banker, who has not done so, to send in his signed assent promptly. Whether a dealer does or does not sign, he is bound by the code. Each investment banker should sign, in order that he may vote on the fair practice provisions, and, still more important, in order that he may do his part in the national effort for recovery. RFC Fund to Aid Globe & Rutgers Fire Insurance Co.—Loan of $3,500,000 Will Be Made to Rehabilitate Company. The Reconstruction Finance Corporation moved again on Dec. 16 to bring relief to New York financial institutions when it agreed to provide $3,500,000 of Federal funds to rehabilitate the Globe 86 Rutgers Fire Insurance Co., under conditions which would furnish other capital to the company. A Washington dispatch to the New York "Times" Dec. 16, further stated: pr For nearly a year the company has been in the hands of the New York State Superintendent of Insurance. George S. Van Schaick, who has been negotiating several months for the RFC's assistance in putting the company on a sound operating basis. The announcement of the commitment to Globe & Rutgers made to-day followed a conference yesterday between Mr. Van Schaick and Chairman Jones of the RFC with President Roosevelt. The rehabilitation of the company is the first one of major proportions in which the RFC has participated. The corporation agreed to lend $3,500,000 on the security of first preferred stock in the reorganized company on condition that a like amount of junior preferred stock is purchased by others, including its creditors. In addition, $500,000 of new capital is to be put into the institution by others than its creditors. This amount is to be supplied, it was stated, by owners of the company through subscription to the common stock, of which there is now $2,000,000 outstanding. Jones Announces Commitment. Chairman Jones made known the Corporation's commitment in the following announcement: For the purpose of assisting in the reorganization of the Globe & Rutgers Fire Insurance Co. of New York, the directors of the RFC have agreed to lend $3.500,000 to be used by interested parties in the purchase of $3500000 preferred stock of the Globe & Rutgers Fire Insurance Co., conditioned that not less than 83,500,000 of second preferred stock be bought by th,hers, including creditors of the company, and $500,000 new cash capital to be furnished by others than the creditors. From available information it appears that $7.500,000 new capital will put the company In a sound condition and enable it to re-enter the field of writing fire insurance. At the present time the company is in the hands of the Insurance Commissioner of New York State. The New York "Times" further states: There is no vest significance in the decision of the RFC to lend the $3,500,000 to "interested parties" for the purpose of buying the stock rather than buying the stock directly itself, it was explained. The law authorizes the Corporation to lend to any one on adequate security for purchasing stock In reorganized institutions. Stock Becomes Collateral. In the case of bank reorganizations the Corporation has most frequently purchased the preferred stock itself, with the requirement that stockholders match the amount of its subscriptions as closely as possible. This has not been the policy, however, with the rehabilitation of insurance companies in which the Corporation has participated. In the present instance the Globe & Rutgers Co, will sell its $3,500,000 of first preferred stock to "interested parties" designated as X Y and Z. The latter will pay the company for the stock with funds advanced by the RFC,the cash going to the reorganized company and the stock to the RFC as collateral for the loan. This is being done, it is said, for the reason that other insurance companies who have reinsured themselves through Globe & Rutgers are the largest class of creditors of the company. In the disposal of the additional $33,500,000 to be purchased by "others including creditors," it is planned to meet many of the outstanding claims against the company by creditors' acceptance of the new stock. J. and W. Seligman & Co. will participate in the issue it is understood, on account of their claims against the insurance company. While the loan by the RFC is conditioned upon fulfillment of certain requirements, it was indicated that no difficulty is expected in this regard. It is the practice of the RFC not to make formal announcements of corn- Dec. 23 1933 mitments for reorganizations until it has every assurance that the conditions it prescribes will be fulfilled. Trading in 22 Investment Trust Issues Is Ended in North Carolina by the State. An Associated Press dispatch from Raleigh, N. C., Dec. 17 stated: Stanley Winborne, State Securities Commissioner, revealed to-day that he had issued orders to cancel and revoke the registration of 22 investment trust issues. Mr. Winborne said the action reduced the number of investment trust issues which might be sold in the State to eight and eliminated $6,603,000 worth of issues which had been previously registered. At the same time Mr. Winborne ruled that all investment trusts now operating in North Carolina, as well as future applicants for permits to sell their issues in this State, would be prohibited from the practices of "trading out," "exchange out" and "switching out." The investment trusts affected by the order are: American Composite Tr. Shares of N. Y. National Industries Shares of New York Business Recovery Tr. Shs. of Baltimore Super-Corporations of America, Ser, A, B, C. ID, of New York Cumulative Trust Shares of New York Standard American Tr. She, of Chicago Five Year Trust Shares of New York Investors Trustee Foundation of United Second Internat. Securities of Jersey City United States Shares of New York States of New York Investment Trust Shares of New York United Fixed Shares of New York Nat. Investors Corp. of New York (by American Insurance Stocks of Newark (without prejudice) request of company) North American Trust Shares of N. Y. Investment Trust of New York North American Tr. She. Ser. 1953-1956 Collateral Trust Shares of New York Brookshire Investors of Jersey City National Trust Shares of New York Third National Securities Shares of New Fidelity Trust Shares of New York York (without prejudice) In connection with the foregoing, Distributors Group, Inc., announced that it had requested the cancellation of the registration of North American Trust Shares of 1955 and 1956, as well as of Cumulative Trust Shares, and received the cancellation order from the State on Nov. 15. John M. Fields Deposed as President of Federal Land Bank of Wichita. John M. Fields, President of the Ninth Federal Land bank at Wichita, announced on Dec. 16 that he "had been fired at the direction of President Roosevelt," according to Associated Press advices from Wichita to the Topeka "Capital." The advices as contained in the paper indicated continued: Fields said the notice had been given him by Governor William I. Myers of the Farm Credit Administration, and A. S. Goss, Federal Land Bank Commissioner, just before they left Wichita to-night for Washington. The Land Bank President said his successor would be chosen by the Farm Credit Administration and confirmed by the directors of the Ninth Land Bank at its next meeting Jan. 10. Newly Named to Two Posts. Fields said Governor Myers told him the Bank under his direction "is not lending enough money and is not lending it fast enough." Complaints in this respect have grown to such volume, Fields quoted Myers as saying, that the Administration decided a change should be made. Fields, who only yesterday was named President of the Wichita Bank for Co-operatives and the Production Credit Corporation, two new Government-sponsored credit agencies in this District, said the office of president of then new agencies, as well as that of the Land Bank,thus become vacant at once. Issues Statement. Fields has been President of the bank since April 1 1929, and for three years prior to that WWI a Vice-President. In a formal statement Fields said: "Just before leaving Wichita, Governor Myers of the FCA and A. S. Goss, Land Bank Commissioner, told me it was the desire of President Roosevelt that someone else be President of the Land Bank of Wichita. They stated the complaints that the Bank, under my direction, is not lending enough money, and is not lending it fast enough, have grown to such volume they have concluded a change should be made. "Democratic and Republican Senators and Congress members have joined in the demand that I be removed. So I have been fired at the President's direction. My successor will be designated by the FCA, to be confirmed at the next meeting of the Bank's directors, Jan. 10 1934. Applicants for the job should write to Albert S. Goss, Land Bank Commissioner, Washington." American Bankers Association to Hold Spring Meeting at Hot Springs, Ark., April 16-18. F. M. Law, President of the American Bankers Association, has announced that the spring meeting of the Executive Council of the Association will be held at the New Arlington Hotel, Hot Springs, Ark., April 16-18, 1934. Increase of $21,421,153 in Volume of Outstanding Bankers' Acceptances in Month—Total Nov. 29, $758,212,098. For the third successive month the volume of bankers' acceptances shows a substantial increase according to the survey report of the American Acceptance Council released Dec. 18. The volume of outstanding bankers' acceptances on Nov. 29 was $21,421,153 in excess of that outstanding at the end of October; as a result the Nov. 29 total of $758,212,098 represents a new high figure for 1933. Robert H. Bean, Executive Secretary of the American Acceptance Council in making public these figures added: The gain for November was matched by a previous gain of $21,642,261 in October and $21,137,073 in September, thus making an increase of 864,000,000 in bankers' bills in the last three months. The present total according to the Council's report is now $38,660,795 higher than the total for November 30 1932. Actually, however, the gain in the acceptance volume for transactions within the United States or for its Financial Chronicle Volume 137 imports and exports is very much greater than this figure would indicate. This is due to the fact that bankers' acceptances based on goods stored in or shipped between foreign countries have declined in volume $52.724,866 whereas in the classification of imports, exports and domestic warehouse credits alone there is shown a gain over last year's figures of over $98,500,000. During the month of November last bankers' acceptances created for the purpose of financing exports gained $14,669,444 and acceptances for the purpose of financing goods in domestic warehouses increased $25,259,957. Bankers' acceptances created for the purpose of financing imports declined $1.814,782, acceptances for the purpose of financing domestic shipments declined $261,034, and those created for the purpose offinancing goodsstored in or shipped between foreign countries declined $15,509,536 which is one of the largest monthly reductions in this type of credit during the past two years,leaving the total now at only $179,000,000. lb The gain in the two important divisions of warehouse credits and export credits is significant of the improvement in trade conditions, particularly with respect to export acceptance credits, which means greater foreign trade, while the item of acceptances for financing goods in domestic warehouses at $263,665,515, is larger than for several years. The activity In this type of business may be partly credited to the Government's interest In the welfare of the agricultural producers. It is certain that warehouse credits are having a larger place in the acceptance field than over before. After a long period of comparative inactivity in the bill market, the past month has brought several changes in bill rates and support from the Federal Reserve banks at a time when dealers portfolios were mounting. The participation in the market by the Federal Reserve banks was particularly timely and eased an anxiety which was becoming evident with the approach of firmer money and the possibility of heavy selling by the investing banks. At the end of November, accepting banks, principally located in New York, held a total of just under $600,000,000 out of a total volume of $758000,000. This was divided, $272,682,821 in their own bills and $326,303,711 in the purchased bills of other banks. This is an increase of $2,000,000 and $5,000,000 respectively, over the previous month. Recent purchases by the Federal Reserve System either for their own account or under repurchase agreement brings the total holdings to $116,000,000 as against $7,000,000 held as late as November 8. Bankers' acceptances held by the Federal Reserve System for foreign correspondents have now dropped to $2,890,000. Detailed statistics were furnished as follows by Mr. Bean: TOTAL OF BANKERS' DOLLAR ACCEPTANCES OUTSTANDING FOR ENTIRE COUNTRY BY FEDERAL RESERVE DISTRICTS. Nov. 29 1933. Federal Reserve District. $47,031,464 608,126,676 15,579,783 2,028,664 709,881 8,742,959 40,882,647 2,260,262 4,283,247 1,350,000 4,102,701 23,113,814 1 2 3 4 5 6 7 8 9 10 11 12 Oct. 31 1933. $45,169,939 596,274,226 16,342,582 1,555,577 507,434 5,568,728 38,416,875 1,381,176 4,846,162 1,250,000 4,535,534 20,942,712 Nov. 301932. $43,129,275 574.260,664 13,520,591 10,257,216 1,489,122 9,403,143 38,204,985 1,776,642 2,270,647 1.000,000 2.595,889 21,643,129 5719.551.303 5736.790.945 $758.212.098 ZOrand total Increase for month $21,421,153; increase for year $38,660,795. CLASSIFIED ACCORDING TO NATURE OF CREDIT. Nov. 29 1933. Imports Exports Domestic shipments Domestic warehouse credits Dollar exchange Based on goods stored in or shipped between foreign cotmtrira Oct. 31 1933. Nov. 30 1932. $97,549,326 199,654,210 13,877,588 263,665,515 3,775,298 $99,364,108 184,984,766 14,138,622 238,405,558 4,698,194 $80,877,776 160,863,521 15,963.697 220,652,250 8,779,032 170.695.161 105.199.697 232415_1127 Value of Commercial Paper Outstanding as Reported to Federal Reserve Bank of New York, $133,400,000 on Nov. 30, Compared with $129,700,000 Oct. 31. The Federal Reserve Bank of New York issued the following announcement on Dec. 20 showing the commercial paper outstanding on Nov. 30: Reports received by this Bank from commercial paper dealers show a total of $133,400,000 of open market commercial paper outstanding on Nov. 30 1933. Below we furnish a record of the figures since they were first reported by the Bank on Oct. 31 1931: 1933— Nov.30-3133,400,000 Oct. 31__. 129.700,000 Sept.30--- 122.900,000 Aug. 31— 107.400,000 July 31— 96,900,000 June 30— 72,700,000 May 31--- 60,100,000 Apr. 30— 64,000,000 Mar.31___ 71,900,000 Feb. 28— 84,200,000 1933— Jan. 31--- 84,600,000 May 31___ 111,100,000 Apr. 30.-- 107,800,000 1992— 105,606,000 Mar.31 Dec. 31___ $81,100,000 Feb. 29—$102,818.000 Nov.30_ 109,500.000 Jan. 31--- 107,902,000 Oct. 113,200,000 1931— Sept.30— 110,100,000 Aug. 31.— 108,100,000 Dec. 31_ 117.714,784 July 31-.... 100,400,000 Nov.30_ 173,684,384 June 30...... 103,300,000 Oct. 31— 210,000,000 Government Obligations of $16,600,000 Purchased by Treasury During Week of Dec. 16. It was announced on Dec. 18 by Henry Morgenthau, Jr., Acting Secretary of the Treasury, that the Treasury, during the week of Dec. 16, purchased $6,600,000 of its securities in the open market for investments for Government agencies, and $10,000,000 for the sinking fund, a total of $16,600,000. According to press reports, it was again insisted that these purchases were not made primarily in an effort to sustain the market for Government securities. Since the inception of the Treasury's support to the Government bond market, announced on Nov. 22 and referred to in our issue of Nov. 25, page 3769, the weekly purchases have been as follows: Nov. 25 1933 Dec. 2 1933 $8,748,000 I Dec. 9 1933 2,545,000 I Dec. 16 1933 $7.079,000 16,600.000 4457 United States Buys London Gold—Believed to be One of "Unknown Buyers" From its London bureau the "Wall Street Journal" of Dec. 22 reported the following: For the last week or two, bullion brokers in reporting the destination of daily open market gold purchases have changed their usual formula to "taken for unknown destinations" from "taken for Continental account." It is believed in well-informed quarters that one of the unknown buyers has recently been American banks acting for the RFC. Some quarters estimate the amount purchased at as high as £5,000.000. The policy, however, has proved ineffective in regulating dollar-sterling exchange as it depends upon the fortuitous cricumstance of how much gold there happens to be on offer on any day and what the net commercial demand for dollars happens to be on the same day. Nevertheless, there is good reason to suppose that the policy by no means has been abandoned but that efforts are being made on the technical side to make it more effective. As things are, it would be equally or even more effective if the RFC purchased:commodities or sterling here, but either of these methods appears impracticable as neither sterling nor commodities presumably could be held by the Federal Reserve on behalf of the RFC. Amendment to Deposit Insurance Feature of Banking Act of 1933 Suggested by G. C. Morgan of Leach Brothers—Would Eliminate Possibility of Unlimited Assessments. A plan to amend the Banking Act of 1933 to eliminate the objection raised by many banks to the unlimited assessments that might be imposed under the deposit insurance feature has been proposed and forwarded to Walter J. Cummings, Chairman, Federal Deposit Insurance Corporation. The plan, of which George C. Morgan of Leach Brothers, New York, is the author, is said to have been read and approved by officers of several banks in the financial district. Under the plan, an announcement issued in the matter Dec. 18 said, a Federal Deposit Insurance Co. would be formed by the Federal Deposit Insurance Corporation and the banks of the country afforded an opportunity to invest in its stock, the investment being on a par as to safety with their investment in the stock of the Federal Reserve Bank, but holding possibilities' of greater income. The announcement continued: Any bank applying for deposit insurance following examination, if found unsound, and consequently a poor risk, could apply to the Reconstruction Finance Corporation for financial assistance to properly equip itself for insurance. If such bank is unable to do this, it is assumed that it should be liquidated. The annual premium to be paid by banks for this insurance, it is pointed out, would be far less than the amount saved from the nonpayment of interest on demand deposits. The suggested amendment follows: (A) Empower the Federal Deposit Insurance Corporation, as provided for in the Act, to take immediate steps to incorporate a Federal Deposit Insurance Co., whose stock shall be fully paid and non-assessable. (B) Have the original authorized capital of this company $500,000,000: 5,000.000 shares of par value $100 per share, with the right to increase if necessary. (C) Incorporate this Federal Deposit Insurance Co. under similar charter to those of the old-line fire insurance companies and have its by-laws set up in keeping with the by-laws of the New York Clearing House Association, which has been in existence for a period of 80 years and failures of the member banks of which have been nil. (D) Make it compulsory that the stock of the Federal Deposit Insurance Co. be subscribed for by banks at $125 a share, in an amount equal to onehalf of 1% of the applicant's deposits as of Dec. 1 1933. (E) Make it compulsory that every National bank or member of the Federal Reserve System subscribe for stock of and apply for deposit insurance with the Federal Deposit Insurance Co. (F) The stock subscription to be accompanied with application for deposit insurance to the extent of 100% of that bank's deposits and the application to be executed by the applying bank shall contain the constitution and by-laws of the Federal Deposit Insurance Co., which will also provide that the applying bank will pay the expenses of examination by the Federal Deposit Insurance Co. and will further provide for annual premiums 'to be paid by the applying bank to keep this and quarterly examinations insurance in force. (G) The annual premium rate to be paid by banks is a matter to be determined later, but should be based on the operating expenses of the Federal Deposit Insurance Co. on same basis as old-line fire insurance companies'_premiums. (H) Have the by-laws of the Federal Deposit Insurance Co. provide that the entire capital funds thereof be invested in United States Government bonds and the surplus in such municipal securities as the board of directors shall approve. (I) Have the board consist of at least nine directors, three to be named by the President, three by the Federal Reserve Board and three by the banks. (J) As 100% deposit insurance suggested herein will automatically protect deposits, have the amendment provide that the stock of all banks subscribing for stock in the Federal Deposit Insurance Co. be relieved from the 100z% stockholders' liability or so-called double liability. (R) From the income of the company's investments in Government and municipal bonds, as well as examination fees and annual premiums, credit 25% of the annual net earnings to surplus and disperse 75% of such net earnings as dividends to stockholders. The text of the Banking Act of 1933 was given in our issue of June 24, page 4335. "Bank's Relations to Its Customers" Described in Booklet by S. H. Patterson, Vice-President Guaranty Trust Co. of New York. The Guaranty Trust Co. of New York has published for complimentary distribution among business executives a 100-page booklet entitled "A Banks Relations with Its Customers," written by Stuart H. Patterson, Vice-President and Comptroller of the company. The booklet stresses the need for closer co-operation and better understanding between business men and banks, and indicates the services banks can render to the public. It explains what banks require from borrowers in the way of information, security and reciprocal relations, so that prospective borrowers may prepare themselves in advance and thereby facilitate the 4458 Financial Chronicle prompt and efficient handling of their requirements by their banks. Chapter headings that indicate the scope of the booklet include: Reciprocal Relations Between Bank and Customer; Borrowing Money from a Bank; Functions of the Federal Reserve System; Means of Watching and Testing Financial Condition; Bank's Analysis of Borrowers Credit; Foreign Services Rendered by Banks; Trusts and Other Fiduciary Services. President Extends Holidays of Federal Employees as Evidence of Their 'Splendid Service." President Roosevelt on Dec. 20 issued an Executive Order which varied from the formal terms usually employed in that it expressed his "appreciation of the splendid service of employees of the Government," by extending the holiday season for Federal employees, many of whom have been working overtime in the Departments and Bureaus in Washington. The President directed that these workers be granted holidays to-day (Dec. 23) and on Saturday, Dec. 30. The order read as follows: EXECUTIVE ORDER. Excusing Federal Employees in the District of Columbia from Duty Dec. 23 and 30 1933. As an evidence of appreciation of the splendid service of the employees of the Government, most of whom have been working under exceptional pressure for the last nine and one-half months, it is hereby ordered that the several executive Departments and independent Government establishments in the District of Columbia, including the Government Printing Office and the Navy Yard and stations, be closed on Saturday, Dec. 23 1933, and Saturday, Dec. 30 1933, and all clerks and other employees in the Federal service in the District of Columbia, except those who may for special public reasons be excepted from the provisions of this order, or those Whose absence .from duty would be Inconsistent with the provisions of existing law, are hereby excused from duty on those days. FRANKLIN D. ROOSEVELT. The White House, Dec. 20 1933. $282,143,000 Bid to Offerineor$100,000,000 or Thereabouts off91-Day Treasury BillsvDated Dec. 20— Tenders of $100,263,000 Accepted at Average Rate of 0.74%. Of tenders totaling $282,143,000 received to the offering of $100,000,000 or thereabouts of 91-day Treasury bills dated Dec. 20, Henry Morgenthau, Jr., Acting Secretary of the Treasury, announced on Dec. 18 that $100,263,000 have been accepted. Tenders to the offering were received atrthe Federal Reserve Banks and the branches thereof up to 2 p.m., Eastern Standard time, that day. Mr. Morgenthau's announcement said that "the average price of the Treasury bills to be issued is 99.814 and the average rate is about 0.74% per annum on a bank discount basis." Previous issues of bills brought rates of 0.60% (bills dated Dec.6); 0.43% (bills dated Nov. 29); 0.43% (bills dated Nov. 22), and 0.40% (bills dated Nov. 15). The/Acting Secretary's announcement added: The accepted bids ranged in price from 99.851;equivalent to a rate of about 0.59% per annum, to 99.808, equivalent to% rate of about 0.76% per annum on a bank-discount basis. Only part of the amountibid for at the latter price was accepted. The offering of the bills was noted in our issue of Dec. 16, page 4283. New Offering of 91-Day Treasury Bills in Amount of $100,000,000 or Thereabouts—To Be Dated Dec. 27 1933. Tenders to a new offering of $100,000,000 or thereabouts of 91-day Treasury bills were received up to 2 p.m., Eastern Standard time, yesterday (Dec. 22), at the Federal Reserve Banks and the branches thereof. No tenders were received at the Treasury Department, Washington. The bills, which were sold on a discount basis to the highest bidders, will be dated Dec. 27 1933, and will mature on March 28 1934, and on the maturity date the face amount will be payab1eiihout interest. They are issued in bearer form only, and in amounts or denominations of $1,000, $10,000, $100,000,$500,000 and $1,000,000 (maturity value). Announcement of the offering was made on Dec. 19 by Henry Morgenthau, Jr., Acting Secretary of the Treasury. An issue of bills amounting to $75,082,000 mature on Dec. 27. Mr. Morgenthau's announcement of Dec. 19 said in part: No tender for an amount less than $1,000 will be considered. Each tender must be in multiples of $1,000. The price offered must be expressed on the basis of 100, with not more than three decimal places. e.g.. 99.125. Fractions must not be used. Tenders will be accepted without cash deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by a deposit of 10% of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour for receipt of tenders on Dec. 22 1933. all tenders received at the Federal Reserve banks or branches thereof u Dec. 23 1933 to the closing hour will be opened and public announcement of the acceptable prices will follow as soon as possible thereafter, probably on the following morning. The Secretary of the Treasury expressly reserves the right to reject any or all tenders or parts of tenders, and to allot less than the amount applied for, and his ac.ion in any such respect shall be final. Those submitting tenders will be advised of the acceptance or rejection thereof. Payment at the price offered for Treasury bills allotted must be made at the Federal Reserve banks in cash or other immediately available funds on Dec. 27 1933. The Treasury bills will be exempt, as to principal and interest, and any gain from the sale or other disposition thereof, will also be exempt,from all taxation, except estate and inheritance taxes. No loss from the sale.or other disposition of the Treasury bills shall be allowed as a deduction, or otherwise recognized, for the purposes of any tax now or hereafter imposed by the United States or any of its possessions. Henry Morgenthau Jr., Acting Secretary of the Treasury, announced yesterday that the tenders had totaled $271,832,000, of which $100,890,000 was accepted. Except for one bid of $10,000 at 99.950, the accepted bids ranged in price from 99.874, equivalent to a rate of about 0.50% per annum, to 99.815, equivalent to a rate of about 0.73% on a bank discount basis. Only part of the amount bid for at the latter price was accepted. The average price of Treasury bills to be issued is 99.816, and the average rate is about 0.73%. $992,496,500 Allotted in Offering of $950,000,000 or Thereabouts of 2Yi% Treasury Certificates of Indebtedness Dated Dec. 15—Total Subscriptions $2,806,779,500—Exchange Subscriptions of $607,610,500 Allocated in Full. Final subscription and allotment figures as to the offering of $950,000,000 or thereabouts of 23.-i% Treasury certificates of indebtedness dated Dec. 15 1933, maturing Dec. 15 1934, were announced on Dec. 16 by Henry; Morgenthau, Jr., Acting Secretary of the Treasury. The announcement said that total subscriptions amounted to $2,806,779,500, of which $992,496,500 were allotted. Maturing certificates to the amount of $607,610,500 were tendered in exchange for the certificates dated Dec. 15. These exchange subscriptions were alloted in full. The maturities included $254,364,500 of certificates paying)% of 1% and $473,328,000 Of 43% certificates. Cash subscriptions which were allotted on a percentage basis, amounted to $2,199,169,000. —In the New York Federal Reserve District subscriptions amounted to $1,598,728,500 of which $661,401,500 were allotted. The subscriptions received consisted of $1,131,946,000 in cash and $466,782,500 in exchange subscriptions. Previous references to the offering were given in our issues of Dec. 16, page 4283 and Dec. 9, page 4100. As reported by Mr. Morgenthau, subscriptions and allotments were divided among the 12 Federal Reserve Districts and the Treasury as follows: Federal Reserve District. ... Exchange ' ', Total Cash Total . Subscriptions Subscriptions Subscriptions Subscriptions Received. Received. Received. Allotted. $1.131,946,000 $466,782,500 $1,598,728,500 $661,401,500 New York 88,396,000 8.243.500 Boston 98,639,500 23,718,500 7,259,500 112,797.000 Philadelphia --120,056,500 27,092,500 5,695,500 134,023,500 Cleveland 139,719,000 28,948,500 1,724,000 88,142,500 Richmond 67,886,500 13,215,000 836,000 83,873,000 Atlanta 84,709,000 15,731,500 305,527,000 84,538.000 Chicago 390,065,000 138,755,500 6,303,000 34,208.000 St. Louis 40,511,000 13,056,000 16,257,000 M1nneapolis_...._ 1,877,500 5,037,500 18,134,500 35,007,000 12,741,500 Kansas City __ 47,748,500 19,260.500 82,928,000 6,631,000 Dallas 89,559,000 22,400,500 108,084,000 4,416,500 San Francisco-112,480,500 23,317,000 562,000 Treasury 562,000 1562,000 Total 82.199.169.000 $607.610.500 $2.806.770 non 511(12 4q6.500 Postal Savings Deposits at New High Record—Increased About $10,000,000 During November to Total of $1,199,281,139. Announcement wasImade onTDec. 19 by Clinton B. Ellenberger,' Second Assistant Postmaster General in charge, that postal savings deposits at the end of November totaled C199,281,139, the largest amount ever entrusted to the Fital Savings System, and an increase of $314,110,670 over a year ago. Deposits during November totaled $9,700,527, as compared with $9,007,314 in October, an increase of $693,213. Tax Revision Hearing by House Committee—New York Board of Trade Disputes Rates Recommended —Spokesman of Manufacturers Association Advocates Sales Tax—Flexible Liquor Levy Considered— People's Lobby Favors Income Tax Only. The manufacturers' sales tax as a means of enlarging Federal revenues was recommended to the House Ways and Means Committee on Dec. 18 by James A. Emery, General Counsel for the National Manufacturers' Association, at the Committee's hearing on general tax revision. On the same day the Committee heard a proposal that President Roose- 4459 Financial Chronicle Volume 137 Telt be given authority to apply flexible liquor taxes to be adjusted in the light of experience so as to yield the greatest possible revenue to the Government without encouraging the bootlegger. Late last week, after a conference with the President, Representative Doughton of North Carolina, Chairman of the Committee, had indicated that he favored a Federal liquor tax no higher than $2.40 a gallon and no lower than $2.10. Also testifying at the hearing, on Dec. 18, was M. L. Seidman, representing the New York Board of Trade, who opposed abolition of consolidated income tax returns for corporations. The Committee also beard a plea for use of the taxing power to redistribute the wealth of the nation, made by representatives of the People's Lobby,including Benjamin C. Marsh, Executive Secretary; the Rev. James Meyers, Industrial Secretary of the Federation of Churches of Christ in America; Rabbi Sidney Goldstein of the Free Synagogue of New York, and Professor Colston E. Warne of Amherst College. The testimony on Dec. 18 was summarized as follows in a Washington dispatch of that date to the New York "Times": The Committee gave little response to Mr. Emery's suggestion for a Federal manufacturers' sales tax, but members argued with Mr. Marsh and Professor Warne over their proposals to abolish all consumption excises and place practically the whole weight of taxation en the income tax law. Mr. Emery and Mr. Seidman each put his organization on record against abolition of the consolidated income returns for corporations, recommended by the subcommittee and apparently favored by the full Committee. Mr. Emery argued that business already had accommodated itself to the consolidated return system and that many enterprises engaged in both manufacture and distribution, which may be required by law to operate as separate entities for local regulation, "would be put to incalculable expense if denied the privilege of consolidated return." Representatives Hill, Vinson and Cooper questioned this view, Mr. Hill finally declaring the system "fundamentally sound," and adding: "According to its gain as a business enterprise, each corporation should pay its tax separately." Mr. Emery opposed the subcommittee's proposals to eliminate foreign credit allowances and reduce the depreciation and depletion allowances and presented a plan of his own for liquor taxes, giving the President final authority in determining the rates under a "sliding scale" as deemed best for revenue and law enforcement. Mr. Seidman, advocating an income tax law "so drawn as to encourage the maximum of co-operation on the part of the great mass of honest taxpayers," favored the subcommittee's proposal to simplify the rate structures, but held that its rate base should be broadened in the lower brackets. Income Held True Basis. Rabbi Goldstein proposed that the maximum earned income allowance be set tentatively at around $50,000 and that practically all above that be "conscripted" through the income tax law to pay for the recovery program. He said that if $50,000 proved too high, the maximum might be lowered to $25,000. Professor Warne called for a return to the income tax system as the true basis for taxation. "The Roosevelt program has shifted the bulk of the tax burden from income and corporation levies to specific commodity taxes, tariffs and processing taxes," he said. "The result is that the wealthy of the nation have been able to avoid the payment of income tax rates which would have been established had taxation been on the basis of ability to pay." Mr. Marsh advocated sufficiently increased income taxes to raise $2,000,000,000 in additional taxes this year and repeal of "at least $1,000,000,000 of consumption taxes now in force." His program would also include confiscation of the incomes of wilful tax evaders. Prof. Moley AttacksITariff Views of Secretary Hull— Former Assistant Secretary of State Declares Montevideo Proposals Are Out of Harmony with Roosevelt Recovery Program—Calls for Political Realignment Based on President's Policies. Professor Raymond Moley, former Assistant Secretary of State, speaking at Columbia University, on Dec. 14, declared that the internationalist viewpoint of Secretary Cordell Hull fails to harmonize with the national economy of the "New Deal." Professor Moley, in his address, said that the NRA and the AAA would become permanent. He demanded "a new political alignment" of those who favor and oppose President Roosevelt's policies, and remarked that the success of the measures already taken to restore prosperity to the United States depends "upon a strict national economy," which actually would require a tariff selectively higher than that now in force. "This," he added,"has made it necessary to defer, perhaps to blast, the hopes of old-fashioned Democrats who cherish the belief that social justice could only come through more international trade." We quote from the New York "Times" of Dec. 15 concerning other portions of the speech: Professor Moley defended the Administration's gold purchasing program as one that could do no harm at home, but which by devaluing the dollar abroad stimulated commerce in such exportable commodities as cotton. No attempt was being made, he said, to shape American policies to fit "the pattern of a preconceived theory." On the contrary, be declared, President Roosevelt was merely applying "common sense" to the problems of recovery. Then he added: Criticizes Hull Proposal. "In this connection, it is interesting to note that the Secretary of State, this week, in introducing a trade proposal at Montevideo, said: 'A full, stable and durable business recovery can only be effected by a restoration of international trade and finance to a mutually profitable extent.' With the qualification at the end, this is clearly not incompatible with the Amergoes ican recovery program. But the Secretary is not content with this. He on to say: 'The United States proposes to keep alive the policy offered extraorother herewith, pending the operation of temporary emergency and dinary measures comprising domestic recovery programs.' "This statement ought to be cleared up. If, as I believe, this means that the Secretary believes that the Roosevelt relief and recovery measures, such as th NRA and the AAA, are temporary, it is time for progressive Democrats to put into the record emphatically their dissent. Let us have no misconception about what we are doing. We are building permanently and not for a mere purpose of recovery. And the reactionaries in the party ought to have this made clear at the earliest possible moment. If members of the Administration, presumably speaking for the Administration, are uttering this kind of doctrine, it behooves every progressive to make his protest. articulate, and I propose to do so. "This permanence depends, of course, upon the extent to which its leaders can formulate a political party to carry it on, a party that essentially believes in it and can move with assurance as a majority force." Delnds Gold Policy. Professor Moley said that current fears of uncontrolled inflation were Illfounded, and that the gold purchasing program was "only one factor in the monetary policy," in fact, only a "temporary" and "minor" one. The policy, he said, did not preclude the use of open market operations, public works expenditures or international efforts "for a general revalorization and readjustment of the gold content of currencies." All,these steps, Mr. Moley said, were subject to control. The former Assistant Secretary of State also pointed out that nothing in the policy prevented action to raise the price of silver, which he declared to be "an absolute necessity." Empire Trust Co., New York, to Sell $3,000,000 of Capital Notes to RFC—Capital Reduction from $6,000,000 to $3,000,000 Recommended. At a meeting held Dec. 19, the directors of the Empire Trust Co., New York, authorized the sale of $3,000,000 of capital notes of the institution to the Reconstruction Finance Corporation, and recommended to the stockholders a reruCtion in the par value of their stock from $20 to $10 a share, the numbei of shares remaining unchanged at 300,000, thus reducing the capital from $6,000,000 to $3,000,000. It is proposed to transfer the reduction in capital stock together with $350,000 from surplus to reserves, so that depreciation in the company's assets will be fully covered by reserves. With regard to the capital notes, an announcement in the matter said: The notes will mature serially over a period of 10 years at the rate of $300,000 annually,subject to retirement in whole or in part before maturity at the option of the trust company. They bear 5% interest, subject to a rebate of 1% on those retired before Dec. 15 1936. It Is proposed to use the proceeds of the notes to increase the company's investment in United States Government securities. The announcement said that the capital structure after these changes will be capital stock, $3,000,000; capital notes, $3,000,000; surplus about $2,300,000; total capital fund 88,300,000; reserves, $4,700,000. Upon this basis the book value, exclusive of reserves, will be $17.67 a share. Sale of $43,700,000 Capital Notes to RFC by 11 New York Clearing House Banks and Trust Companies. The completion of the sale of $43,700,000 capital notes to the RFC by 11 New York banks and trust companies, members of the New York Clearing House, occurred on Monday, Dec. 18. Regarding the consummation of the sale the New York "Times" of Dec. 19 said: • The representatives of the New York Clearing House banks involved took to the RFC their capital notes together with Cashier's checks for an equivalent amount of RFC notes, while the RFC presented its notes and checks for the capital notes of the banks. The exchange was completed between 3 and 4 p. m. In the same account it was noted that the transaction was to have been completed on Dec. 15, but was postponed because of an error. We quote further from the account, as follows: The postponement of the transaction last Friday [Dec. 151 was due to the discovery that the RFC notes that had been sent here lacked the seal of the United States Treasury, which should have appeared on that portion of the notes bearing the Government's guarantee. The RFO notes bear interest at 2h'% and the capital notes carry interest at 4% and have until July 1 next to run. The banks will thus be losing 1%% interest in order to comply with the request of the President that the New York Clearing House institutions lead the way in the RFC's campaign to increase bank capital. Because of the error and the delay, the directors of the RFC have voted to refund to the banks the difference between the interest they pay the RFC and the interest they receive for the three days, Saturday. Sunday and Monday. It was estimated that this refund would amount to more than $6.200. The reason for the refund was that both sets of notes had already been dated Dec. 15, the day the transaction was to have been carried out and will bear interest from that day. Leading local banks which have not yet announced their intentions on thelnuestion of issuing preferred stock or capital notes said yesterday that no decisions had yet been reached by their boards. In this group are the Irving Trust Co., whose directors will hold their next meeting on next Tuesday; the First National Bank, the directors of which also will meet on next Tuesday, and the Commercial National Bank, which will have its next board meeting on Thursday. Several of the National banks would like to issue capital notes as the State-chartered banks have done, merely to indicate their co-operation 4460 Financial Chronicle with the Government, but are reluctant to sell preferred stock. In the case of one or two National banks the executives have expressed doubt whether they could obtain the consent of stockholders to the sale of preferred stock. The prevailing legal opinion, however, reinforced by a recent ruling of the Comptroller of the Currency. Is that the law as t stands permits National banks to sell preferred stock only. The provision for the sale of capital notes was put in as an afterthought to take care of banks under State charters which do not permit banks to issue preferred stock. Regarding this week's transaction the New York "Herald Tribune" of Dec. 19 said: The banks, all Clearing House members, which participated at the deal included Bank of New York & Trust Co., $1.000,000: Bank of the Manhattan Co.. $3.000.000: Bankers Trust Co.. $5,000,000: Central Hanover Bank & Trust Co.. $5,000,000: Chemical Bank & Trust Co., $5,000,000: Corn Exchange Bank Trust Co., $3,000.000; Fifth Avenue Bank, $200.000; Fulton Trust Co., $250,000; Guaranty Trust Co., $20,000,000; Lawyers County Trust Co., $250,000. and Marine Midland Trust Co., $1,000,000 City Banks Seeks Approval. In addition, the Manufacturers Trust Co. has sold the RFC $25.000,000 of capital notes. and National City Bank is seeking approval from its stockholders at their annual meeting on Jan. 9 for the right to sell 350,000,000 of preferred stock. Several of the Clearing House members, however, have not yet taken action on their preferred stock or capital note deals. Sale of $5,000,000 of Capital Notes to RFC Authorized by Director of Irving Trust Co., New York. The following announcement stating that the Board of Directors of the Irving Trust Co., New York, have authorized the sale of $5,000,000 of capital notes to the RFC, was issued by the trust company on Dec. 21: To-day (Dec. 21) the Board of Directors of Irving Trust Co. authorized the purchase from the RFC of $5,000,000 of its 21(% notes and the sale to that corporation of a like amount of capital notes retireable on or before July 31 1934, to be issued by the trust company in accordance with the request of the President of the United States for the co-operation of all banks in the progress of the Government. Chase National Bank, New York, Considering Sale of Capital Notes to RFC. At a meeting of the Board of Directors of the Chase National Bank, New York, held Dec. 20, the question of the issuance by the bank of preferred stock and its sale to the RFC was considered. In noting this, an announcement issued in the matter added: It was the sense of the board that the bank should co-operate with the RFC in its program of purchasing preferred stock or capital notes of banks, but the discussion of the officers of the bank with officials of the RFC and the preparation of the necessary papers had not reached the point where it was possible for the board to take definite action. The officers of the bank were authorized to continue their discussions with the RFO and the matter will be taken up again by the board in the near future. RFC Purchases $'3,000,000 of Capital Notes of Title Guarantee & Trust Co., New York—First Step in Government's Effort to Relieve Holders of Mortgage Certificates. The purchase of $3,000,000 in the capital notes of the Title Guarantee Trust Co., of New York, was announced by the RFC, Dec. 20, as the first step in the Government's effort to relieve distressed guarantee mortgage and certificate holders in New York State. Advices from Washington (Dec. 20) to the New York "Herald Tribune" of Dec. 21, further said: The action of the finance corporation Is the result of a conference between Jesse H. Jones, Chairman of the Corporation, and George S. Van Schaick, Superintendent of Insurance of New York, held here Dec. 15. It was agreed that the finance corporation would make provisions for loans on guaranteed mortgages and mortgage certificates by advances to mortgage companies in a manner approved by the State insurance authorities. It was explained at the time it wa,not the purpose of the Government to make loans in anywhere near the amount of these certificates, but merely to assist certificate holders who need some relief and prevent the sale of the certificates at sacrifice prices. Group of Economists of Yale University Opposed to Administration's Efforts to Secure Artificially Higher Level of Prices by Means of Manipulation of Country's Monetary Structure—Stabilization of Currencies on Gold Basis Urged. Opposition to the Administration's attempt to secure "an artificially higher level of prices by means of the monetary structure" is expressed by a group of economists of the faculty of Yale University, who express the belief "that it is highly desirable that an early agreement be reached with the other leading Nations looking to normal stabilization of their respective currencies on the gold basis. The statement issued at New Haven on Dec. 15 follows: The undersigned 'teachers of economics in Yale University, hereby express the grave!concern with which we view the present consequences and tendencies pf the Government's attitude toward the monetary system. Although wepelleve that a continued increase in the price level, such as Dec. 23 1933 normally occurs during the period of recovery, is desirable, we oppose any attempt to secure an artificially higher level of prices by means of manipulation of the monetary structure, such appearing now to be the program of the Administration as indicated by its gold purchase policy. While we recognize the possibility and the desirability of ultimately developing sound methods of securing a more stable price level than has prevailed in the past, we are certain that the present is, of all times, least appropriate to experiment along this line. The country needs to-day above all else the restoration of orderly industrial activity, with the renewal of employment and the return of a normal income stream to all the people. In contrast, industrial activity is to-day at a low ebb, the investment of new capital has almost completely ceased, the values of bonds, including those of the United States Government, and the prices of corporation stocks and of commodities are exhibiting the evident reactions to fear and nervous speculation. These are the natural consequences of general uncertainty regarding the future of the monetary unit in which all values are expressed. These conditions are not favorable to economic recovery. We believe that the recent monetary policies of the Government have already awakened distrust of the good faith and credit of the United States. The continuation of the policies, in connection with the heavy borrowing which the extraordinary expenditures of the Government are now necessitating, is likely to have disastrous effects upon the finances of the National Government and to force the Nation into crude paper money inflation— of all forms most harmful and least susceptible to control. We believe that the United States should immediately announce that It will return at the earliest possible moment to a free gold standard and that the gold content of the dollar shall be substantially the same as at present (25.8 grains standard). We believe that under no circumstances should there be an issue of circulating treasury notes, such as the greenbacks, or the remonetization of silver, whether by way of bimetallism. symmetalism, or otherwise, or any government purchase of silver except for the minting of subsidiary coins. We believe that it is highly desirable that an early agreement be reached with the other leading nations looking to normal stabilization of their respective currencies on the gold basis. The above statement was signed by the following: Andrew Barr Jr., Assistant Professor of Accounting. N. S. Buck, Professor of Political Economy. W. M. Daniels, Thomas DeWitt Cuyler, Professors of Transportation. Clive Day, Professor of Political Economy. R. L. Dixon, Instructor in Accounting. Fred R. Fairchild, Professor of Political Economy. H. B. Hastings, Professor of Industrial Administration. Kent Healy, Assistant Professor of Transportation. R. C. Jones, Associate Professor of Accounting. J. E. McDonough, Associate Professor of Political Economy. 0, G. Saxon, Professor of Business Administration. E. D. Smith, Professor of Industrial Relations. F. P. Smith, Instructor of Accounting and Economics. W. W. Werntz, Instructor in Business Law and Finance. R. B. Westerfield. Professor of Political Economy. Three Professors of Swarthmore College Defend President Roosevelt's Monetary Policies—Issue "Counter-Manifesto" in Reply to 11 Other Members of Faculty. Defense of President Roosevelt's monetary policy representing a reply to his critics came on Dec. 15 from three Professors of the social sciences department of Swarthmore College. They called upon "free-thinking Americans to stand by their President during these crucial months in the face of all financial advisers, experts, bankers, professors and anti-professors." The Philadelphia "Record" from which the foregoing is taken, also stated: They described their statement as a "counter-manifesto," because it was in reply to a manifesto criticizing the Administration recently issued by 11 other members of the College faculty. Their Statement. The counter-manifesto was signed by Robert C. Brooks, Professor of Political Science, and Mary Albertson and Frederick J. Manning, Professors of History. Their statement read: "Our colleagues in the social science department of Swarthmore College have recently published a rather lengthy manifesto on matters of inflation. monetary policy, and other abstruse topics. Since no reasons were indicated for our own failure to sign the manifesto, may we, very humbly, suggest that: "The problems of the present depression have been compared to those of war, notably to those of the late World War. Surely the lasting wounds of economic depression—unemployment, demoralization, malnutrition of children—are fully as excruciating as any wound which bullets can inflict. "In wartime we heard much from Republicans and Democrats, even from Socialists, about 'standing by the President.' It was, in fact, taken rather • seriously. "Now, it seems, our President has affronted a 20th century 'tabu,' the gold standard, the non-bologna dollar—a non-touchable, as Adam Smith might have said in 1776. "For our part, we had thought this President remarkable as perhaps the first National Executive recorded in history for justifying his policies not aa_eternal ex-cathedra wisdom, but as frank experiments, to be modified Insofar as results might demand. "Do results, so far, demand immediate modification? We doubt that we, personally, can say. We doubt, if anyone can, least of all anyone unfamiliar with the peculiar political pressures of these last months. "The argument 'that history teaches' fails to impress us who were told that history taught that there could be no World War, that the bankers would stop it, that the 18th Amendment could not be repealed—that this, that or the_other policy was unthinkable. Hit "Cocksure Attitude." "We-do know that we have as much faith in this President of an economic war as'once we had in our President for a military war; that we are aware of no magic abracadabraa so sacred as to lie beyond the range of experiment; that we deprecate a somewhat cocksure attitude on the part of many of this President's recent critics. "And so we call upon free-thinking Americans to stand by their President during these crucial months in the face of all financial advisers, experts, bankers, professors, anti-professors—especially those upon whose advice • Financial Chronicle Volume 137 recent Presidents relied so implicitly and (to cut it short) with such notable results." President Issues Executive Order Legalizing Authority of National Labor Board—Past Actions Are Approved and Functions as Mediator Officially Ratified. President Roosevelt, in an Executive Order made public Dec. 19, defined and confirmed the powers of the National Labor Board, and "approved and ratified" all past actions taken by the Board. The effect of this order is to bestow official authorify upon the Labor Board, which heretofore had been required to rely upon the weight of public opinion to make its decisions effective, and which possessed no actual power to enforce its rulings. Publication of the order coincided with two important controversies in which the Board was involved,each based on disputes involving the election of representatives by workers to confer on collective bargaining. In one case the Board said the Weirton Steel Co. and in the other the E. G. Budd Manufacturing Co. had "defied" its authority. Reference to the Weirton Steel Co. case is given in greater detail elsewhere in this issue. Officials of the National Recovery Administration, including General Hugh S. Johnson, admitted on Dec. 19 that the President's Executive Order conferred no new powers on the Labor Board, but emphasized that it recognized the legal status of the body as a conciliatory agencY of the Federal Government. The Executive Order read as follows: EXECUTIVE ORDER. Continuance of The National Labor Board and Definition of the Powers Conferred under Section 2 of the National Industrial Recovery Act. By virtue of the authority vested in me under Title I of the National Industrial Recovery Act approved June 1 1933, and in order to effectuate purposes of said Act it is hereby ordered as follows: (1.) The National Labor Board created on Aug.5 1933,to "pass promptly on any case of hardship or dispute that may arise from interpretation or application of the President's re-employment agreement" shall continue to adjust all industrial disputes whether arising out of the interpretation and operation of the President's re-employment agreement or any duly approved industrial code of fair competition, and to compose all conflicts threatening the industrial peace of the country. All action heretofore taken by this Board in the discharge of its functions Is hereby approved and ratified. (2.) The powers and functions of said Board shall be as follows: (A.) To settle by mediation, conciliation or arbitration all controversies between employers and employees which tend to impede the purposes of the National Industrial Recovery Act: provided, however, the Board may decline to take cognizance of controversies between employers and employees in any field of trade or Industry where a means of settlement provided for by agreement, Industrial code or Federal law has not been Invoked. (B.) To establish local or regional Boards upon which employers and employees shall be equally represented, and to delegate thereto such powers and territorial jurisdiction as the National Labor Board may determine. (C.) To review the determination of the local or regional Board where the public interest so requires. (D.) To make rules and regulations governing its procedure and the discharge of its functions.. FRANKLIN D. ROOSEVELT. White:House, Dec. 16 1933. Views of Seven Professors on Government's Monetary Policy and Necessity of Return to Gold—Express Sharp Criticism of Administration's Present Methods, But Differ on Solutions for Return to GoldABasis. The views of professors in colleges in seven different States on the present monetary policy of the Government and the necessity of returning to gold were made public on Dec.18 by James Brown, President of the Chamber of Commerce of the State of New York. The views were expressed in letters commenting on the Chamber's sound money crusade. In his announcement, Mr. Brown said that while the writers are all Sharply critical of the Administration's present methods, and In agreement as to the dangers of inflation, there is some difference of opinion as to the course which should be pursued in getting the nation back on a gold basis. Dr. Raymond Phelan, monpy economist of Tufts College, Boston, disagrees with Dr. E. W. Kemmerer of Princeton that it is politically impossible to return to the 100-cent dollar. He declares that such announcement by our Government with a promise to resume gold payments as soon as possible would send our dollar to par, that flown capital would return to us, and business be given such a stimulus as it has not had for four years. Dr. Phelan further said: We have a normal trade balance, four and a third billion of gold, great resources, and we are not without evidence that natural recovery got some start last spring. A manly about face at Washington upon the question of money is our need of the hour. The Administration's plan of currency depreciation merely reduces the value of the dollar abroad, according to Dean of Commerce John T. Madden of New York University, leaving the internal purchasing power of the currency, as meas- 4461 ured in terms of domestic prices, either stable or only slightly increased. Dean Madden added: Most of the business transactions in the United States arise out of domestic transactions and involve domestic commodities only, which is in decided contrast to the conditions in Europe and particularly in Great Britain. From this analysis it is evident that the depreciation of the dollar can exercise only a slight influence on the movement of typical domestic commodities which are not traded in on the world markets. Excerpts from other letters made public by Mr. Brown follow: Elbert Alvis Kincaid, Professor of Finance, University of Virginia, Charlotteville.—". . . Inflation in any form is nothing but a delusion so far as a means of terminating the depression. . . . But, unfortunately, that appears to be the conviction which actuates the Administration. Hence, if it fails,.we may expect a resort to a more violent form of inflation through the issuance of fiat money. In that event, we face a very serious situation, for flight from the dollar will so increase the velocity of money as to bring about inflation without having corrected price maladjustments, and it will at the same time strike a deadly blow at Government credit. We are thus moving in a direction which offers no hope of better conditions. Indeed, the present policy tends to develop a struggle between divergent economic groups for control of the dollar tor their own ends and thus accentuates instability where stability is the only condition upon which better times must be postulated." Dr. Roy L. Gar* Vanderbilt University, Nashville, Tenn.—"It is not the gold standard but an abuse of many sound principles of money and credit that has brought us into financial chaos. . . . I do not favor devaluation of the present dollar of 23.22 grains of gold, for I believe a restoration of the gold standard will restore confidence to such an extent that the expansion of credit will secure the desired results." Dr. Russell Weisman, Western Reserve University, Cleveland.—"No program of recovery can succeed until the current uncertainty with respect to the Government's currency intentions is removed. . . . I have no faith In managed currencies, in dancing dollars, or in any of the devices of the new school economists. . . . The nation has been losing capital at an alarming rate, and without this capital, restoration of profitable business and industrial operations and a fuller employment of labor will be impossible." Dr. Neil Carothers, College of Business Administration, Lehigh University, Bethlehem, Pa.—"The embargo on gold exports was unnecessary, even temporarily, and was unwise permanently. The abrogation of the gold clause in United States bonds was an inexcusable breach of contract, while the confiscation of privately owned gold was without legal, moral, or economic defense. The inflation act putting the power of inflation into the hands of one official was unnecessary and destructive of public confidence. The gold purchase plan is an undignified sleight-of-hand juggling with international exchange rates, promotive of international discord and interference with commerce, inadequate to alter the domestic price level, and ruinous to business confidence. The one means of restoring confidence, removing the stain of repudiation and insuring economic recovery is a return to the gold dollar standard established by law in 1873, confirmed in 1900, and protected by every Administration through war and depression until the present time." Dr. E. E. Agger, Rutgers University, New Brunswick, N. J.—"The return of the gold standard should, I believe, be a major objective of governmental policy. This does not preclude the possibility, through a well-organized banking system and a wise banking policy, of exerting a stabilizing influence on the movement of general prices. . . . Incantations with gold in London or elsewhere do not supply an effective instrument of price control." National Labor Board Refers Case of Weirton Steel Co. to Departmentrof Justice Following Election of Labor Representatives at Weirton Plants Despite Board's Ban—Executive Order Clothes Body with Greater Authority—Court Test Seen Possible— General Johnson and E. T. Weir Issue Statements Outlining Opposing Viewpoints. The controversy between the National Labor Board and Ernest T. Weir, Chairman of the Weirton Steel Co., over the authority of the Board to supervise balloting for collective bargaining representatives at the Weirton plants, grew more acute this week, following the action of the company in holding an election on Dec. 15 despite the protest of the National Labor Board and of General Hugh S. Johnson, National Recovery Administrator, both of whom contended that the balloting would not be representative under the plan adhered to by the company. The power of the Board to act in the case was believed to have been greatly increased by the Executive Order of Dec. 19, which gave the Board authority to continue its activities as it has conducted them since its formation, and which made all actions of the Board to date effective. Prior to the issuance of this order by President Roosevelt the Labor Board's effectiveness had depended almost entirely upon the weight of public opinion to support its decisions. The background of the controversy between the Board and Mr. Weir was described in our issue of Dec. 16, page 4302. In a telegram sent to Mr. Weir, on Dec. 14, General Johnson declared his belief that the company was "about to commit a deliberate violation of Federal laws" in holding the election, and warned Mr. Weir fhat his defiance of the Labor Board was endangering his right to the Blue Eagle. The balloting was conducted as planned on Dec. 15, however, with 9,317 employees casting votes. This vote was said to represent 81.5% of the total number of employees eligible to vote. Forty-nine representatives were chosen. The case having been referred to the Department of Justice by Senator Wagner, Chairman of the Board, that Department on Dec. 16 received a preliminary report from its agents. The report went 4462 Financial Chronicle to Harold M. Stevens, Assistant Attorney-General in charge of anti-trust law prosecutions, who had been assigned to handle the Labor Board's request that the Department obtain an injunction against company officials to enable the Board to conduct a new election. Labor Board officials said that the election held on Dec. 15 at the company's plants at Weirton and Clarksburg, West Va., and Steubenville, Ohio, was "farcical." General Johnson's telegram to Mr. Weir, on Dec. 14, read as follows: I am informed that, in breach of your agreement with the National Labor Board and in overt defiance of your obligation under the steel code and Section 7a of the NIRA, you will to-morrow hold a company-dominated election for the selection of your representatives. I have endeavored without success to reach you on the telephone, and was met by a refusal by your Secretary to put me in touch with you. I am informed that Gerard Swope of the Industrial Advisory Board has had a similar experience. This is to advise you that in soy opinion you are about to commit a deliberate violation of Federal laws and that if you do so, I shall request the Attcrney-General to proceed against you immediately. In the meantime I shall at once call an open hearing to determine whether your Blue Eagle should be withdrawn and whether you should be henceforth denied the privileges of the steel code. Dec. 23 1933 was advised that neither I nor the Labor Board nor anyone else had any eght to interfere with their organization or their election. Fortunately I had the entire telephone conversation with General Johnson taken down and transcribed and will be prepared to show when the time arrives exactly what the General said. It seems to be part of General Johnson's policy to use vehement and bombastic language in the newspapers when attacking any manufacturer, and I do not intend to continue exchanging fire with him in the public print. We are advised and believe that the express language of the law means exactly what it says, and that no one, not even the National Labor Board, • can dictate terms to our employees which are contrary to their wishes. The company is drawn into the controversy only because it believes it to be its duty to stand behind the great majority of its workers in resisting Illegal interference in their organization by the Labor Board. If, in so doing, either the company or its officers are in any way violating the NIRA, the courts provide the usual and proper place for its determination. Analysis of Rulings of National Labor Board Made by National Association of Manufacturers—Rulings Indicate Board's Policies and General Methods of Action in Settlement of Labor Disputes. Three months of rulings by the National Labor Board have furnished sifficient data to indicate its policies and general methods of action in the settlement of labor disputes. On the basis of these rulings the National Association of Manufacturers has recently issued an analysis, marshalling A telegram to Mr. Weir from the National Labor Board, the important decisions of the Labor Board under group on Dec. 14, read: headings so as to formulate, in some degree, its lines of Your letter of llth inst.. received. Inasmuch as you have refused to permit thinking and the directions in which it is moving. An • our representatives to conduct the elections under the rules of the National issued in the matter said that it is recognized, announcement Labor Board and in accordance with agreement signed by you, and have in of course, that much of the influence of the Board is exerted addition interfered with the choice of representatives of your employees in informally, and that is published material by no means violation of Section 7 of the NIRA, the Board will therefore proceed to take such action as it may be advised to enforce the agreement and the rights covers its work. On the other hand, what has been pubof the employees. lished forms a valuable and already rather formidable body After receiving General Johnson's telegram, on Dec. 14, precedent for the newly established supreme court of labor. Mr. Weir issued the following statement: The announcement further said: General Johnson reached me by telephone some time after sending the telegram referred to and before its receipt we discussed the matter fully. He then stated that he did not understand the facts, that the matter had only been brought to his attention last evening, and we both agreed that it was a matter for the courts to decide. Nothing is to be gained, as I see it, by newspaper reports. I do not consider that the company has any right to interfere with the form of organization which our employees have chosen. If the National Labor Board thinks we have violated any law or broken any contract, let it proceed in the courts. Meanwhile, we shall not interfere with our employees holding the election which they are entitled to hold to-morrow under their by-laws. Another statement on the controversy was issued on Dec. 14 by George M. Humphrey, Chairman of the Executive Committee of the National Steel Co., which owns the Weirton Steel Co. It read as follows: The memorandum of the Labor Board provides "an election will be held during the second week of December under the supervision of the National Labor Board; the procedure and method of election to be prescribed by the Board." The object of this agreement was to assure to all parties the impartiality of the election by obtaining the supervision of the National Labor Board, and for that purpose, delegating to them control of the detail of election procedure, polling and counting of the votes. The agreement in no way delegated to the Board any control of the form of the employee organization, nor did it give them any right to change the constitution or by-laws of that organization either as to the time of holding the election (a matter which was discussed during the hearing at length) the qualification of voters, the number of representatives to be elected, or In any other respect whatsoever. Such changes can only be made by the employees themselves, or their duly elected representatives, who are in exclusive control of their own organization by the express terms of the NRA. That this was clearly understood by all parties is conclusively demonstrated by what took place at the meeting, as quotations from the official records show. When the Rules Committee of the employees was summoned to Washington about a week before the election to appear before the Board and were requested to agree to the changes in their form of organization proposed by the Board, they steadfastly refused to do so, as the records of the Board will show. That this Committee of employees had the support of the overwhelming majority of their fellow workers was demonstrated by the primary vote Monday, when, after efforts had been made to keep men from the polls, there were 8,436 votes cast in the primary election out of a total of 11,463 eligible voters. Mr. Weir amplified his statement of Dec. 14 with another statement on the following day, issued coincident with the balloting at the Weirton plants. It said: In my statement issued to the press late lest night referring to General Hugh Johnson's telegram to me and our telephone conversation, I said: "Nothing is to be gained, as I see it, by newspaper retorts." However, General Johnson has seen fit to question my understanding of our conversation, and I have no choice but to reply. The statement attributed to General Johnson in newspapers that he could not reach me until 6 o'clock last evening is false. My telephone conversation with him occurred from 3:53 p. us. to 4:05 p. en., as the records of the telephone company will show. His wire was received in Pittsburgh at 3:56 p. m., and delivered to my office 15 minutes later. Immediately after the conversation I received the telegram which he sent and which was printed in the newspapers, and I then wrote and mailed him a letter bearing on our telephone conversation which was deposited in the mails at 5 p. m., an hour earlier than the time he claims he was able to reach me by telephone. In our conversation I told him that our employees themselves had adopted this form of organization; that they were holding this election, and that I The creation of the National Labor Board was not provided for in the National Industrial Recovery Act, although Senator Wagner, present head of the Board, was one of the leading framers of the NIRA. The Board was created by the President upon recommendation of the Industrial Advisory Board and the Labor Advisory Board. In a joint statement on Aug. 5 of the two advisory boards tho creation of a labor body was urged to "consider, adjust and settle differences and controversies that may arise through differing interpretations of the President's re-employment agreement." At first, it was planned that the power of the Board would be restricted to a purely consultative capacity, and that its decisions would be binding only if the parties in dispute agreed in advance to be bound by them. It was to act only as an official and always available court or arbitration. But the Board quickly outgrew this limitation too. As a National emergency was declared to exist as pressing as any during war time, toe dicta of the Board were held as final as any of President Wilson's decisions on labor troubles during 1917 and 1918. The wording of the Board's decisions Immediately reflected this growth of authority, and assumed the tone of Supreme Court decisions. On Sept. 28 Senator Wagner was :saying that the Board "cannot issue summonses, and it will not swing a club. It relies upon voluntary action." But a month later, on Oct. 31, he declared that "to make its policies effective, the National Labor Board is backed by all powers and penalties of the NIRA. They will be used when necessary." The Senator's change of view followed the deed. Already,four days after Its formation, the Board announced that it has "assumed jurisdiction over the industrial disputes affecting the hosiery industry in Reading, Pa." Later, in the New York boot and shoe case, finding that mediation was unavailing, it dictated the terms of settlement and packed the strikers back to work. "The differences are too deep-seated to justify further attempts at mediation," reads the Board's statement. "The National Labor Board, therefore, rules that the strike which has continued since August shall be terminated upon the following terms." Throughout its brief career the Labor Board, though its decisions may have been arbitrary and occasionally conflicting, has consistently endeavored to further the President's purpose of getting as many men back to work as possible. In one case the Board used the threat that unless picketing were ended it would not move to end a strike. "The Committee will enter upon its duties (of investigating anthracite conditions) as soon as picketing is discontinued and those who have jobs and wish to work at them are permitted to do so without interference," the Board announced by telegram on Nov.9. It has ordered the reinstatement of strikers in preference to strikebreakers, and has included strikers in the election of worker representatives to deal with employers. Dismissal of an employee because of his activity in organizing has also been over-ruled by the Board. It has been active in promoting and supervising the election of worker representatives. In some instances the Board's procedure has ridden rough-shod over private contracts. In the New York boot and shoe dispute the Board held that "those of the alleged union contracts made since the inception of the strike, which have not resulted in the return of a majority of the workers in any of the shops affected by the strike are invalid," although the contracts were made with an A. F. of L. union. In the Douglas Shoe Co. dispute in Brockton, however, the Board's decision that union workers vote "to ratify or annul the contracts alleged to be in force" met with resistance. J. J. Mara, President of the Boot & Shoe Workers 'Union, indicated that he would take legal steps to enjoin enforcement.:of the Board's decision, charging that it interfered with a contract made annually for 30 years between Brockton employers and his union. In certain important matters of interpretation, the Board has taken a definite stand. Representatives of the workers need not necessarily be representatives chosen from the ranks of the workers, leaving the opportunity for professional organizers to deal with employers. But the Board has recognized "merit" in the choice of an employee in the settlement of two strikes (the Massachusetts plant of Westinghouse and the Art Metal Construction Co. of Jamestown, N. Y.). The "open shop" principle has also been recognized. The Board announced In the settlement of the bakery strike in Philadelphia that the agreement need not "contain any provision for a closed shop or for a contract with the union as such." The analysis of the National Labor Board's decisions by the National Association of Manufacturers thus presents an interesting and important study of the career of one of the many agencies at work in the New Deal, and once which may continue to play a pivotal part in labor-employer relations. Volume 137 Financial Chronicle President Roosevelt Creates Corporation to Finance Sales of Electric Appliances in Tennessee Valley District—Unit Incorporated as Electric Home and Farm Authority Will Lend to Householders to Spur Use of Current from Muscle Shoals—Makers of Appliances Co-operate by Promising Minimum Prices. Incorporation of a Government-sponsored company to lend money to householders in the Tennessee Valley for the purchase of electrical equipment with which to use the current generated at Muscle Shoals was announced by President Roosevelt on Dec. 19. At the White House it was said that the plan was experimental and had been formulated with the hope of encouraging private capital to follow a similar course and thus stimulate the use of electric power. It was added that manufacturers of electrical appliances had co-operated by promising to sell their products in the Tennessee Valley at minimum prices. The program is expected to benefit the residents of seven States. Direct Federal loans will finance purchases of electrical refrigerators, electric irons, waffle irons, toasters, sewing machines and similar devices in this district. The President issued an Executive Order establishing a Delaware corporation to be known as the Electric Home and Farm Authority, Inc., with a capitalization of $1,000,000. The governing body of the corporation will comprise Arthur E. Morgan, Chairman of the Tennessee Valley Authority; H. A. Morgan, Director of the TVA, and David E. Lilienthal, Director and General Counsel of the TVA. The stock issue will be absorbed by the National Recovery Administration. A Washington dispatch of Dec. 19 to the New York "Times" gave the following details of the President's plan: The Executive Order contained no hint concerning the purpose of the corporation, but Stephen T. Early, Assistant Secretary to the President, made known that its purpose is to extend "cheap credit" to all home-owners and residents within the TVA area for the purpose of electrical appliances. The project, Mr. Early said, Is experimental, and if it proves successful "the next step will be to try to persuade private capital to accommodate purchasers so that the thing can be made nation-wide in scope." "Manufacturers of electrical appliances," he added, "have been in Washington in conference with TVA officials, and are most anxious to obtain the market, and have agreed to materially reduce the selling prices of most of their products." The program was further explained by Mr. Lilienthal in the following statement: "The objective of this program is a wider and greatly increased use of electricity in the homes and on the farms in the seven States of the Tennessee Valley. In order to carry out the program there must be a broad. scale distribution of very-low-cost-standard-quality electricity-using appliances, and concurrently a revision downward of electric rates. The new agency is based on a co-operative program in which the Federal Government, the electric utilities, both publicly and privately owned, the electric manufacturing industry and dealers will participate. Program Is Outlined. "Through the Electric Home and Farm Authority, it is proposed that the Federal Government participate in this program in the following way: "1. By assisting in financing the consumer in purchasing standard electric equipment at very low prices. "2. By securing reductions in electric rates; by agreement with the utilities, public and privately owned, so as to make use of this equipment feasible for the average householder and farmer. "2. By engaging in educational work and research to further lower the cost of electric equipment and to make it better adapted to the needs of the average home and farm. "Electric appliances are now sold by regular dealers for the manufacturers, by hardware and department stores and by electric utilities. The program does not contemplate a disruption of these outlets. Each dealer will, of course, continue to exhibit and sell any line of electric appliances he desires, but he will also have an opportunity to sell the low-priced appliances which this program is expected to create. The program will stimulate the dealers' general business." Conference of Mayors Asks More Federal Aid—Urges Rise in Public Works Fund and Extension of Credit to Municipalities—H. L. Hopkins Reports More than 4,000,000 Employed on Civil Works Projects, with Average Salary $50 Monthly. The Executive Committee of the United States Conference of Mayors, meeting in Washington on Dec. 14, urged the continuation of the Civil Works Administration until such time as the 4,000,000 persons now employed by that organization can find private employment, a solution of the municipal default problem by Congressional action, an increase in the PWA fund of$2,000,000,000 and the extension of credit to public bodies upon sound collateral. These recommendations were submitted to Acting Secretary of the Treasury Morgenthau; Earl Bailie, Assistant Secretary of the Treasury; Lewis Douglas, Director of the Budget; Jesse H. Jones, Chairman of the Reconstruction Finance Corporation; Governor Black of the Federal Reserve Board, and Harry L. Hopkins, Director of Federal Emergency Relief. On the following day (Dec. 15) Mr. Hopkins announced that more than 4,000,000 men and women are employed on civil works projects. He estimated that 2,000,000 families have been taken off relief rolls. The average pay for workers under 4463 the CWA is $50 a month, he added. Denying charges that CWA was taking men from private industry by the offer of higher wages, he said that on the contrary many men are returning toTprivate industry from CWA. The program advocated by the Mayors was given as follows in a Washington dispatch of Dec. 14 to the New York "Times": The program of economic recovery and relief advanced by the Mayors was summarized as follows: 1. A Continuation:, of theTCWA program for an indefinite period until the 4,000,000 persons who have obtained temporary work can find employment through other channels. h. 2. An additional $2,000,000,000 allotment to the PWA. L 3. Continuation of the Federal relief machinery. L 4. Extension of credit to public bodies upon sound collateral. 5. Solution of the municipal default problem. 6. Low Federal liquor taxes in order that the cities which will be charged with the regulation and policing of the liquor traffic may impose taxes and fees sufficient to defray the added cost of government due to repeal of the Eighteenth Amendment. It was said later by one of the Mayors who attended the meeting at the Treasury that Major LaGuardia took an active and leading part in presenting the recommendations to Mr. Morgenthau and the other officials. The plan reported outlined the situation facing municipalities who have defaulted who soon will be forced to default in interest payments upon bonds. The report said that part of the present condition was caused by the inability or unwillingness of citizens to pay taxes, but it also pointed out that banking institutions offer as an excuse for not accepting municipal collateral the "uncertainty of the monetary and currency situation." Attention was called to the measure introduced in the last session of Congress known as the "municipal bankruptcy bill" and passage of the bill was urged. Collapse of Credit Pictured. am EMI Regarding municipal credit and public defaults the report said: "Municipal credit, similar to all other types of credit, has been in a state of collapse for the past year. Not only is the market for short-term municipal securities (tax anticipation notes, warrants and bonds) severely limited but the cities are finding it increasingly defficult to dispose of long-term municipal bonds. The results of this are, of course, reflected not only in curtailed governmental services such as schools, health and Pollee and fire, reduced pay for most public employees and payless paydays for others, but in the forced use of scrip, and even in defaults. "Since municipal government is the foundation stone of democratic government, thisicondition, too often lightly dismissed, is most serious and is a definite!drag upon steps taken by the National government leading toward economic recovery. "The causes of this are in part due to inability (and in some cases unwillingness) of the citizen to pay his taxes. Banking institutions also otter as an excuse the existing uncertainty of the monetary and currency situation. Without appraising these elements, the fact remains that public bodies to-day are face to face with the inability to finance the operation of essential governmental services. "To hoisted banks, railroads, building and loan associations, farm owners, home owners and many other institutions and groups, the Government has found it possible to extend credit of legitimate character without impairment to the financial structure of the National government. Call for Remedial Legislation. ' 51 "It would seem that city government itself, in times of stress, should be treated on a parity at least with private enterprises. We, therefore. urge extending credit to public bodies on sound collateral at reasonable interest rates in order that needed services of government may be maintained. "If this step be impossible, we respectfully urge a thorough study by the Federal Government of alternative possibilities in the way of easing present credit channels. It is our belief that rediscount privileges through the Federal Reserve System would be of considerable assistance as well as changes in the regulations now governing the type of collateral eligible for security against Federal and postal savings deposits. "It is our belief that from the standpoint of the taxpayer, now burdened by a huge public debt, It will ultimately be necessary to establish a Federal agency which shall serve as the fiscal agent for the Governmental units of the United States. This agency would have under its supervision a credit pool sufficient to care for the needs of the subordinate Governmental units throughout the nation. "Intensive studies of public defaults indicate clearly the necessity for some Federal legislation which will establish an orderly and equitable procedure for solving this acute problem. We urge intensive consideration to the end that default may be cleared up, the rights of creditors protected and the credit of solvent municipalities safeguarded. "Nothwithstanding the fact that the Governmental units throughout the nation have weathered the storms of economic depression far more successfully than private enterprise, with the result that only a few units have been forced to default on their obligations, it is apparent that the present situation must be remedied. "The States individually are powerless to act in this connection. At the last session of Congress efforts were made to enact legislation of the character needed, and we urge the passage of this legislation." Thoselbesides MajoriLaGuardia attending the sessions to-day were Mayors Curley of Boston, Hoan!of Milwaukee, Walmsley of New Orleans. Ellensteirilot Newark, Sparks of Akron and Holcombe of Houston, City ManageriC. A. Dykstra of Cincinnati and Paul V. Betters of Chicago. Secretary. RFC Continues Purchases of Newly Mined Gold—Price Advanced Five Cents to $34.06 for First Rise Since Dec.1—Gold Buying Fund Raised to $100,000,000. Rumors of possible devaluation of the dollar, involving a return to the gold standard at a ratio not yet decided upon, continued to emanate from Washington this week, but found no official confirmation whatever. Leading figures in the Administration, including Acting Secretary of the Treasury Morgenthau, were represented as satisfied with the action of commodity prices since the inauguration of the present monetary program. The principal feature of the Reconstruction Finance Corporation's gold operations during the week was the posting on Dec. 18 of a price of 884.06 a fine ounce 4464 Financial Chronicle for the purchase of newly mined domestic gold, marking the first change in the official quotation since Dec. 1. The advance was only 5 cents, however, and apparently did not indicate any intention to lift the price rapidly, for the same quotation was maintained on every other day this week. As a result the dollar remained generally steady on foreign exchange markets. Late yesterday (Dec. 22) the pound sterling was quoted at $5.10 in New York, compared with the close of $5.1114 on Dec. 15, while the French franc yesterday touched 6.11 cents, as against 6.12 cents a week ago. It was revealed on Dec. 15 that the RFC had made a second allocation of its notes to finance the gold buying program, bringing the total authorized for that purpose to $75,000,000. On Dec. 21 the RFC announced that a further allocation of $25,000,000 of its notes for gold purchases, bringing the total up to $100,000,000. A dispatch from Washington Dec. 21 to the New York "Times" said: Of this ($100,000,000) it was indicated that over $60,000,000 had been used, $16,976,000 for 507.485 ounces of newly Mined domestic gold and about $45,000,000 for foreign purchases. The original allocation, made on Oct. 26, was $50,000,000; another $25,000,000 was set aside two weeks ago, and the most recent authorization of $25,000,000 was made on Tuesday. Chairman Jones of the RFO said that a "substantial" amount of the first $25,000,000 allocation still remained and that the second $25,000,000, was set aside after a survey of available funds for various purposes of the RFC. It was intimated, however, that no limits had been placed upon future expenditures for gold and that further authorizations might be made from time to Lime as funds became available. Newly mined domestic gold bought by the RFC up to Dec. 15 totaled approximately $15,000,000. The. advance of five cents in the gold price to $34.06 an ounce on Dec. 18, although marking the first change in the official RFC quotation since Dec. 1, had only a minor effect on the action of the dollar in foreign exchange markets. After the new price was posted the pound sterling rose in New York to $5.18, 6 cents above its previous close, and the franc advanced to 6.22 cents, 7% points above the previous close. The dollar recovered much of its strength in later dealings, however, and sterling closed on Dec. 18 at $5.15, while the franc closed at 6.19 cents. Bar gold in London on the basis of a sterling opening of $5.121/2 brought $32.48 an ounce, or $1.58 under the RFC quotation for newly mined gold. Acting Secretary of the Treasury Morgenthau said on Dec. 18 that he was satisfied with the action of commodity prices and that he saw no danger to the Government credit In the operations under the monetary policy. He announced that the Treasury Department last week bought $6,600,000 of its securities in the open market for investments for Government agencies, and $10,000,000 for the sinking fund. It was emphasized that these purchases had not been made primarily in an effort to sustain the market for Government securities. It was also announced on Dec. 18 that the RFC had purchased 469,491 ounces of newly mined domestic gold costing $15,682,000. Mr. Morgenthau's comments on the commodity price trend were quoted as follows in a Washington dispatch of Dec. 18 to the New York "Times": In dealing with the price trend, Mr. Morgenthau referred to a DowJones news ticker report, based on 30 commodities, which, he said, showed on Saturday a commodity level of 105%, as compared with 100 on Oct. 21, while the gold price level was 116 on the same basis of comparison. Asked if he was satisfied with the results, despite the fact that the commodity level represented by the chart had advanced much less rapidly than the price of gold, he replied in the affirmative. The increase in the RFO price came in the face of criticism aimed at the gold program and the request for a reconsideration of the monetary policy in a report published this morning by the Brookings [institution. Mr. Morgenthau's only comment about the report was that he had read the headlines and that they were interesting. Whether increased purchases of gold in the foreign markets will be continued remained one of the mysteries of the program, although Jesse H. Jones, Chairman of the RFO, said that as yet no additional allocation had been made for that purpose. So far $75,000,000 of RFC notes have been authorized, and it has been estimated that about $35,000,000 of this amount has gone for dealings abroad. Senator Thomas of Oklahoma, author of the inflation amendment, was reported in press advices from Washington on Dec. 19 as stating that he wanted the gold policy continued until the dollar value was cut in half, by raising the dollar purchase price for gold to $41.34 an ounce. Senator Connally of Texas, another advocate of devaluation, said that his State was behind the President on the currency policy. RFC Plans Aid for Mortgage Bondholders—Acts on Van Schaick Plea. Relief steps intended to benefit conditions in the State of New York were announced Dec. 15 at Washington. Jessel H. Jones, chairman of the Reconstruction Finance Dec. 23 1933 Corporation, after a conference with George S. Van Schaick, Superintendent of Insurance of the State of New York, made public a plan to relieve distressed guaranteed mortgage and certificate holders. Mr. Jones issued the following statement: 0. After a conference with George S. Van Schaick, Superintendent of' Insurance of the State of New York, and at his urgent request that some provision be made for loans on guaranteed mortgage certificates and guaranteed mortgages, the Reconstruction Finance Corporation has agreed to make loans to such mortgage companies as may be approved by the Superintendent of Insurance and the RFC,for the purpose of relieving to some extent the distressed guaranteed mortgage and certificte holders. It is not the purpose to attempt to lend anything like the full value of these certificates, but merely to assist those certificate holders who may need some relief and to save them from the necessity of selling their certificates at sacrifice prices. — Reconstruction Finance Corporation Proposes to Seek ossiblyas Much as One Additional Funds—Possibly Billion—Broadening of Lending Powers Also Proposed. Following a White House conference, on Dec. 18, Jesse H.Jones, Chairman of the Reconstruction Finance Corporation, indicated a request to Congress for an extension of the corporation's borrowing capacity by perhaps as much as $1,000,000,000. In a Washington dispatch, Dec. 18, to the New York "Herald Tribune," it was also stated: There will also be a recommendation to continue the lending authority of the Corporation, otherwise expiring on Jan. 22, with a view particularly to encouraging industrial loans, liquidating closed banks and providing for the needs of the Warren gold program if it continues to push through the RFO. National Recovery Administration Changes to Be by Codes. Administration leaders arrived at the determination to refrain from subjecting the Recovery Act to Congressional revision on the ground that it is working out satisfactorily and may better be modified in practice as circumstances dictate by changes in the industrial codes. The one exception to this course is likely to be a step to give statutory powers to the National Labor Board as the arbiter oflabor disputes and the nucleus of an industrial court system. The indicated decision to supply the RFC with additional funds was taken to show the Administration's intention to be prepared to carry on railway and industrial financing with Government money if the private capital markets continue to lag. However, Mr. Jones made clear to-day, following his talk with the President, that he was disinclined to favor direct RFC financing of business, although he admitted that such a proposal had been under discussion. He took the view that the banks would be more liberal in their loans when the process of strengthening their capital structure had been completed and the deposit insurance system had become effective. Wants RFC Lending Extended. The disclosure by Mr.Jones that the funds of the RFC had been virtually exhausted in actual loans or commitments suggested that Congress would be asked early next month to extend the lending authority of the Corporation. The Chairman declared that $500,000.000 more would be required to lend closed banks for the immediate relief of depositors and as a means of credit expansion. A total of not more than $1,000,000,000 of new money for the RFC has been discussed, but Mr. Jones would not say definitely that such an amount was necessary. "It is my conviction that the Corporation's lending facilities should be for another year," he said. "Whether this will be recommended by the President or whether I will merely submit the facts to Congress for its consideration has not been determined." Jones Opposes Direct Lendings. The RFC, Mr. Jones stated, has outstanding loans of $2,232,000,000, has given away $500.000,000 more to the Emergency Relief Administration and has made loan commitments for $1,000,000,000 additional. Loans to closed banks aggregate $540,000,000. He pointed out that loans were being repaid daily and that the remittance could be released, but this will not cover all future needs. The Administration discussions, it was disclosed, have referred to the fact that less than $5,000.000 has been lent on industrial pay rolls through the machinery set up by the NRA. This fact, in conjunction with the continued complaints of many small businesses about the scarcity of' financing facilities, has revived the talk of direct loans from the RFO. Heretofore they have been made to banks or to mortgage companies set up to aid industry. The Washington correspondent of the New York "Journal of Commerce" referring to the fact that the Corporation is obligated to the Treasury for $2,232,000,000 and has other commitments of about $1,000,000,000 all above the original $500,000,000 capitalization, added: Not all of this money has, of course, passed from its hands. For instance, while the Corporation has allocated $230,000,000 for cotton loans, only between 845,000,000 and $50,000,000 has been called for and of the $150.000,000 set aside for corn loans only between $10,000,000 and $15,000,000 has gone out. G. W. Alger to Head Mortgage Inquiry—Governor Picks Moreland Commissioner for Investigation Asked by Van Schaick—Broad Powers Granted. George W. Alger of New York City was named on Dec. 18 by Governor Herbert H. Lehman as a Moreland Act commissioner to investigate the "management and affairs of the insurance department with reference to the operations; conduct and management of the title and mortgage guarantee corporations under its supervision." The investigation was asked for on Dec. 14 by George S. Van Schaick, State Superintendent of Insurance, following criticisms of delays in rehabilitating these companies. Max D. Steuer also had asked the courts to eliminate the superintendent from the situation. Volume 137 Financial Chronicle The Governor's letter to Mr. Alger read as follows: I am enclosing your appointment as Moreland commissioner under Section 8 of the executive law to investigate the management and affairs of the insurance department with reference to the operations, conduct and management of the title and mortgage guarantee corporations under its supervision. Your willingness to serve as commissioner gives me much pleasure. I had no hesitation in asking you to serve because I realized.that the task was one of great magnitude and one of serious consequence to thousands of People in the State of New York. And in that task I am certain and fully confident that you will perform splendid work. In acting as Moreland commissioner, I hope that you will seek to accomplish the following: (1) Examine and investigate the management and affairs of the Insurance Department with respect to the title and mortgage guarantee corporations under its supervision; (2) in connection with this, examine and investigate into the operations, conduct and management of the4title and mortgage guarantee corporations themselves; and (3) make recommendation with respect to the legislation providing for the supervision to be exercised by the Insurance Department over title and mortgage guarantee corporations, and with respect to the conduct and practices of such corporations to be permitted under law;in addition, make recommendations as to what can be done to assist the thousands of holders of whole mortgages and certificates guaranteed by the title and mortgage guarantee corporations. If, in the conduct of your work as commissioner, you should find evidence of any violation oflaw. I would like you to advise me promptly. It is my earnest desire that no effort should be spared to aid these thousands of people in recouping their savings and once again instilling public confidence in real estate as an investment. The formal order appointing Mr. Alger and prescribing the scope of his duties read as follows: To All to Whom These Presents Shall Come, Greetings: Know ye, that pursuant to Section 8 of the Executive Law, I have appointed, and by these presents do appoint George W. Alger Of New York City, as a special commissioner, to examine and investigate the management and affairs of the Insurance Department with reference to the operations, conduct and management of the title and mortgage guarantee corporations under its supervision. The said George W. Alger is hereby empowered to subpoena and enforce the attendance of witnesses; to administer oaths and examine witnesses under oath and to require the production of any books or papers deemed relevant or material. And I hereby give and grant unto the said George W. Alger all and singular the powers and authorities which may be given or granted unto a Person appointed by me for such purpose, under authority of the statute aforesaid. /n witness whereof, I have subscribed my name to these presents and caused the Privy Seal of the State to be affixed hereto at the Capitol in the City of Albany this eighteenth day of December in the Year of Our Lord One Thousand Nine Hundred and Thirty-three. (Signed) HERBERT H. LEHMAN. By the Governor: JOSEPH J. CANAVAN,Secretary to the Governor. Steuer Loses Action to Remove Van Schaick as Superin.01114•11tendent of Mortgage Companies._ The application of Joseph Nemerov, a lawyer, through Max D. Steuer, seeking permission to sue Superintendent of Insurance George S. Van1Shaick to oust him from control of properties of the guaranted mortgage companies-n0w'; rehabilitation, was dic— nied—Dec. 18- by Supreme Court Justice Alfred Frankenthaler. In his decision Fran.kenthaler said thatithe statutes defining his position forced the Superintendent of Insurance "to accept the position of acting for conflicting and antagonistic interests in the rehabilitation proceedings." The decision stated that the Superintendent "must perforce seek to conserve the assets of the various companies engaged in the business of guaranteed mortgages." It added that he thus "clearly owes a duty to the creditors and stockholders of these companies." Mr.Nemerov said he made his application as "attorney for a large number of certificate holders who own in the aggregate many millions of dollars of guaranteed mortgage certificates of these companies." Justice Frankenthaler cited methods by which certificate holders could unite to obtain control of various companies securing the certificates they own. 4465 In making an analysis of accomplishments for distressed farmers to date, the FCA reports that since Oct. 1 1933 the number of loans closed each week has increased from 2,000 to over 8,000. The banks and appraisers have now about caught up on the backlog of applications that piled up in the banks during the first few months after the Emergency Farm Mortgage Act was passed. Appraisals each week are now far in excess of new applications Weekly appraisals have increased 50% since Oct. 1,and the number of applications awaiting preliminary review, or action by the banks, has decreased to a relatively unimportant figure. In order further to expedite the work of the banks in closing loans. applicants are being urged to avoid delay in completing final closing papers ate.. loans have been approved. In some instances a considerable time-lag is caused in abstracting titles to land and other property,and still other loans are not completed promptly because the applicants have to secure the agreement of one or more of their creditors to scale down their claims. In many cases upon receiving notification of approval of his loan the applicant has let down his initiative in completing the necessary papers. He is relieved and satisfied to know that his loan has been approved, but does not realize that prompt execution of closing papers on approved loans will speed up the work of providing credit of those still in need of relief. W. G. Donne, Illinois HOLC Manager, Resigns After Washington Hearing Based on Appraisal Complaints—Loans Suspended Pending Investigation of Operations of HOLC in Illinois. The Home Owners Loan Corporation announced on Dec.18 that it had accepted the resignation ofa William G. Donne, State Manager for Illinois, after protracted conferences with Mr. Donne regarding operations of the HOLC in Illinois. The Federal Home Loan Bank Board in Washington had been conducting an investigation of complaints of excessive charges for appraisals in Chicago. According to the Chicago "Tribune" of Dec. 17 the granting of Federal home loans in Illinois was suspended on Dec. 16 under orders from Washington, pending the investigation of charges against Mr. G. Donne. At the same time a separate inquiry was launched in Chicago by United States Attorney Dwight H. Green. Following Mr. DORM'S resignation, it was stated that William H. McNeal of the Washington staff of the HOLC would immediately assume charge in Illinois, pending the appointment of a successor to Mr. Donne. Philip W. Kniskern, adviser on appraisals, was assigned to Illinois to direct a complete survey of appraisal operation there and Daniel McNamara Jr., Associate Counsel of the HOLC, was sent to Illinois to prepare a report on the legal aspects of loan closings. A statement issued by the HOLC on Dec. 18 follows: Mr. Dome's resignation follows the receipt of various complaints by the corporation concerning alleged excessive charges for appraisals in Chicago and Cook County and publicity given to claims that various attorneys, supposed brokers and others were seeking to act for both home-owners and mortgagees on the representation that they could secure prompt granting of loans if paid commissions. Mr. Donne demanded an immediate hearing before the board on these charges and invited a thorough investigation. He submiuted to the board elaborate data justifying loans made and denied responsibility for all claims by individuals alleging special consideration of loan applications presented by them. He stated that not one loan had been approved in Illinois on the basis of any special influence, but each had been treated solely on its merits and in a large proportion of them the staff had secured substantial reductions from original claims. At the conclusion of the hearings Mr. Donne presented his resignation to the board with the statement that, notwithstanding his ability to refute all charges and criticisms, he was satisfied that the impressions created by critical publicity of the corporation's operations in his State constituted such a handicap to his continued management as to seriously interfere with efforts to afford reliefto home-owners and his successful direction ofthe work In Illinois. He therefore expressed his desire to withdraw in the interests of the home-owners in his State and pledged his personal co-operation in the work of the corporation. We quote from a Washington dispatch of Dec. 18 to the Loans of Over $32,000,000 Closed by Federal Land New York "Times" regarding the scope of thelIllinois Banks from Dec. 1 to 13—More Than $145,000,000 inquiry: Advanced by Banks Since Organization of FCA A staff of inspectors and auditors from Washington has been at work in in May. Illinois for some time. On Dec. 13 the Federal Land Banks, making loans on The board stated that it would continue investigation in all parts of the their own account and on account of the Land Bank Com- country of the operations of persons attempting to collect commissions on basis of alleged special opportunities to influence favorable loans and missioner, broke their all-time high record by closing loans the would employ "every power at its command to prosecute all cases of vioamounting to more than $4,500,000 in one day, headquarters lotion of the law covering such attempts." intend," said Chairman John H. Fahey. "to complete our survey of the Farm Credit Administration announced at Washing- of"We conditions in Illinois and elsewhere and to unhesitatingly correct any ton, D. C., Dec. 15. Loans closed from Dec. 1 to Dec. 13, defects in organization or weakness in personnel which we may find. The a period of less than 11 working days, amounted to over difficulties in handling loans promptly in Illinois are very serious because of complicated tax situation, in Cook County particularly. $32,000,000, which exceeds considerably the total advanced the "No influence of any kind is necessary or will be considered in disposing during period November, same the the Administration for of loan applications filed with this corporation. Any employe of the corsaid. The figure for the month of November is $54,057,765. poration who disregards these principles of fair play and the plain intent:of the government in the administration of the Home-Owners Loan Act will be The Administration's announcement further said: discharged so quickly it will make his head swim,and prosecuted if evidence To date the total amount advanced by the Federal Land Banks since the FCA was organized last May has passed the $145.000,000 mark, having about doubled the amount loaned each month since July when the new loan policy swung into action. The amount advanced in October 1933, $28,091.726. exceeded the total of all loans made by these banks during the entire year 1932. Of the $54,057,728 loaned during November, $20,744,755 was made available from the Land Bank Commissioner's fund of $200,000,000 used to refinance farm indebtedness, usually on the security of second mortgages on farms. of fraud is obtainable." Prompt Conversion of Interim Receipts of Home Owners' Loan Corporation Urged. From Washington Dec. 18, the New York "Journal of Commerce" reported the following: Thousands of holders of the interim receipts of the Home Owners' Loan Corporation were reminded to-day that unless these receipts are turned in 4466 Financial Chronicle and exchangedIfor the definite bonds of the Corporation, their interest payments due Jan. 1 will be delayed. John H.Fahey,Chairman of the Corporation,said that a check up to-day Indicated that comparatively a small percentage of mortgagees holding the receipts has as yet availed themselves of the conversion requirements. The situation applies to practically every State in the Union. Charter of FSRC Confers Broad Powers—Could Purchase Submarginal Lands Coal and Copper Mines or Take Over AAA—H,L. Hopkins,President, ' Says Its Primary Function Will Be to Buy Farm Excess Output. The complete text of the articles of incorporation of the Federal Surplus Relief Corporation, which was created early in October, was made public in Washington this week, and revealed for the first time the wide powers granted the Corporation under its charter, which provides that it may perform any and all functions and powers that may be delegated to it under the Agricultural Adjustment Act, the National Industrial Recovery Act and the Federal Emergency Relief Act of 1933. Among the specific functions listed in the charter is the power "to purchase, store, handle and process surplus agricultural and other commodities and products thereof, and to dispose of the same so as to relieve the hardship and suffering caused by unemployment and to adjust the severe disparity between the prices of agricultural commodities and other commodities and products thereof." These broad powers were interpreted in some quarters in Washington as making it possible for the Corporation to assume all of the powers and activities of the AAA should that body so desire. Harry L. Hopkins, President of the FSRC, said on Dec. 21 that it had been organized solely with the purpose of buying and distributing agricultural surpluses, and that there was no intention of invoking the broad powers given in the charter unless an emergency should develop. Mr. Hopkins said that, under the charter, should money be available, it would be possible for the FSRC to act as agent for the Interior Department or the Agriculture Department or any other similar agency in the purchase of submarginal lands and other lands that should be retired from cultivation, as well as to purchase coal mines, copper mines, or any other product if it seemed advisable to retire production. The Corporation, he added, has been acting solely as an agent for the AAA in buying surpluses of butter and other farm products and turning them over to the Relief Administration for distribution. The text of the certificate of incorporation of the FSRC, filed in Delaware, follows: First.—The name of the Corporation is Federal Surplus Relief Corporation. Second.—The principal office or place of business of this Corporation In the State of Delaware is to be located at 100 West Tenth St., in the city of Wilmington, Newcastle County; the name and address of its resident agent is the Corporation Trust Co., No. 100 West Tenth St., Wilmington, Del. Third.—The nature of the business and objects and purposes to be transacted, promoted or carried on by this Corporation are: (a) To relieve the existing National economic emergency by expansion of markets for, removal of and increasing and improving the distribution of agricultural and other commodities and products thereof; (b) To purchase, store, handle and process surplus agricultural and other commodities and products thereof, and to dispose of the same so as to relieve the hardship and suffering caused by unemployment and (or) to adjust the severe disparity between the prices of agricultural commodities and products thereof; (c) To perform any and all functions and exercise any and all powers that may be duly delegated to it under and pursuant to the following Acts of Congress of the United States of America: 1. The Agricultural Adjustment Act, approved May 12 1933; 2. Title II of the National Industrial Recovery Act, approved June 16 1933; 3. The Federal Emergency Relief Act of 1933, approved May 12 1933; (d) To perform any and all functions and exercise any and all powers that may be duly delegated to it under and pursuant to any amendment or amendments heretofore or hereafter made to said Acts of Congress or any of them; (e) To accept grants or deliveries in any of the States, Districts, Territories or colonies of the United States, or in any and all foreign countries (subject to the laws of such State. District, Territory, colony or country) of moneys, commodities, lands, or other property, of any class, nature or description, made to it under and pursuant to said Acts of Congress or any amendment or amendments thereto heretofore or hereafter made; (f) To carry on any or all of its operations and business and without restriction or limit as to amount to purchase or otherwise acquire, hold, own, mortgage, sell, convey or otherwise dispose of real and personal property of every class, nature or description in any of the States, Districts, Territories or colonies of the United States, or in any and all foreign countries, subject to the laws of such State, District, Territory, colony or country. (g) To co-operate with any private, public or governmental agency or agencies. (h) In general, to carry on any and all other business necessary or convenient to the attainment of the foregoing objects or purposes, and to have and exercise all the powers and privileges conferred by the general corporation law of Delaware upon corporations not organized for profit and having no capital stock. (I) The foregoing clauses shall be construed both as to objects and powers, and it is hereby expressly provided that the foregoing enumeration of Dec. 23 1933 specific powers shall not be held to limit or restrict in any manner the powers of this Corporation. Fourth.—This Corporation is not organized for profit and shall not have authority to issue capital stock. The conditions of membershiplof this Corporation are that there shall be three members and that such members shall be the persons who from time to time may occupy the offices of Secretary of Agriculture of the United States, Federal Emergency Administrator of Public Works and Federal Emergency Relief Administrator, respectively. Fifth.—The names, and places of residence of each of the original incorporators of this Corporation are: Henry A. Wallace, Washington, D. C. Harold L. Ickes, Washington, D. C. Harry L. Hopkins, Washington, D. C. Sixth.—This Corporation is to have perpetual existence. Seventh.—The business of this Corporation shall not be subject to the payment of corporate debts to any extent whatever. Eighth.—The business of this Corporation shall be managed by a board of directors which shall not be less than three, consisting of the members of the Corporation. The term of office of each of the directors shall be fixed by the by-laws of the Corporation. In addition to the powers conferred upon the board of directors by the statutes of the State of Delaware and this certificate of incorporation, the board of directors shall have such powers as the by-laws of the Corporation may from time to time confer upon them. The power to make, alter and amend the by-laws of the Corporation shall be in the members of the Corporation. A majority of the directors in office at any time shall constitute a quorum for the transaction of business, unless the by-laws of the Corporation shall provide that a definite number shall constitute a quorum, but in no case shall a quorum be less than one-third of the total number of directors provided for by the by-laws nor less than two. The voting powers of all members of the Corporation shall be equal. Each member shall be entitled to one vote on any and all questions coming before the members. Any member entitled to vote at any meeting of the members may be represented and vote by proxy. All action taken by the members of the Corporation shall be by majority vote. A certificate of membership shall be issued to each member. No membership or certificate of membership shall be transferable save to the successor of such member in the office specified in paragraph 4 hereof, and no assignee or transferee thereof, whether by operation of law or otherwise, shall be entitled to membership in this Corporation or to any property, rights or interest therein, unless such assignee or transferee shall be the successor In office as aforesaid of such member. All the books, records, papers, vouchers and documents of this Corporation shall, at all reasonable times, be open to the inspection of each member of the Corporation or to his duly constituted agent or representative. The members and board of directors of this Corporation may hold their meetings, and have an office or offices, outside the State of Delaware, and keep the books of this Corporation (subject to the provisions of the statutes of Delaware) outside the State of Delaware at such place or places as may be from time to time designated by the members of the Corporation. If, as and when in the judgment of the members of the Corporation the objects and purposes of this Corporation shall be accomplished and attained, or in the event of the dissolution of the Corporation, the members of the Corporation shall cause all the assets of the Corporation, other than money, to be sold in such manner and at such time or times as the members of the Corporation shall deem beet to promote the public welfare, and shall pay the proceeds of such sale or sales, together with all other moneys remaining in the hands of the Corporation after the payments of its debts and expenses, into the Treasury of the United States for such uses and purposes as may be provided by statute. Ninth.—The Corporation reserves the right to amend, alter, change or repeal any provision contained in this certificate of incorporation in the manner now or hereafter provided by statute, and all rights conferred upon the members of the Corporation are granted subject to this reservation, with the exception, however, that no such amendment, alteration, change or repeal shall be made which would so change the objects and purposes as to permit the net income of the Corporation, or any Part thereof, to inure to the benefits of any private individual or member of the Corporation. We, the undersigned, being each of the original incorporators hereinbefore named, for the purpose of forming a corporation to carry on its activities, both within and without the State of Delaware, and in Inwsuance of the General Corporation Law of the State of Delaware and the acts amendatory thereof and supplemental thereto, do make and file this certificate, hereby declaring and certifying that the facts herein stated are true, and accordingly have hereunto set our hands and seals this fourth day of October. A. D.. 1933. In the presence of: H. A. WALLACE. HAROLD L. ICES, HARRY L. HOPKINS. LEE PRESSMAN As to all. Federal Census of Business to Begin in January-Surrey, Employing 16,000, Will Compare Conditions with 1929 and Serve as Planning Guide for NRA—Expected to Demonstrate Value of Recovery Program. A census of business, intended to afford an accurate comparison with 1929 and to furnish a guide for planning by the National Recovery Administration and other Government and private agencies, will be conducted shortly after the opening of the new year, according to an announcement on Dec. 20 by William L. Austin, Director of the Census. Mr. Austin said that organization is rapidly being perfected and that supervisors and enumerators will begin their duties in January. The census is to be taken in every city, town and hamlet in the country, and it is estimated that employment will be given to 16,000 persons on the project. Outlining the details of the plan, a Washington dispatcrh of Dec. 20 to the New York "Herald Tribune" said: The new census will cover all establishments engaged in retailing, wholesaling in its various forms, service businesses of all kinds, amusement businesses and hotels. It excludes agriculture, manufacturers, construction, transportation, financial institutions, educational institutions and professional and personal services. Volume 137 Financial Chronicle The report will cover particularly the volume of business done in 1933, the number of persons employed, amcunt of pay roll and other expenses; stocks on hand, to obtain the total value of salable commodities at the various stages of economic distribution, and other data required to make the results comparable with the reports of the 1929 census of distribution. It is expected to demonstrate clearly, month by month, the extent of the effectiveness of the recovery program as it affects the return to gainful employment of many thousands of workers in the trades and services to be covered. This part of the census will cover full and part time employment for every month of 1933. Service, Amusement Included. Since this is the first time that service trades and amusements are included in a census, it will be possible to ascertain where the consumer's dollar is spent, in what kinds of stores, for what classes of merchandise, and how much of it is spent for service and amusement. A questionnaire, printed on a single sheet and which contains eight questions, has been prepared. The questionnaire call for an accurate description of the business establishment canvassed, the kind of merchandise handled or service offered for sale, the principal functions performed, the employment given during the year 1933 to men and women on a part-time or full-time basis, salaries and wages. paid to such employees, other operating expenses incurred, the net sales and other operating receipts of the business, stocks on hand at last Inventory date and the amount of business done on a credit basis. Individual returns will be held as strictly confidential. General Johnson, Declaring NRA a Success, Says Blue Eagle Has Been Lost by Only 48 of 3,000,000 Employers—Most of Violators Have Asked for Restoration of Insignia—Overtime Permitted under Agreements for Year-End Inventories. General Hugh S. Johnson, National Recovery Administrator, in a statement issued on Dec. 16, declared that out of almost 3,000,000 employers under the Blue Eagle, only 48 had had their insignia taken away for non-compliance with codes or Presidential agreements. "In other words," General Johnson said, "we can state that 9,999 out of every 10,000 employers are operating peacefully under the NRA insignia." On the preceding day the Administrator had announced that the Blue Eagle would be extended after Jan. 1, the date when the original agreement with employers was due to expire. His statement of Dec. 16 read: I wish to take this opportunity to make acknowledgment of the splendid co-operation accorded the NRA program by industry, trade and the consuming public throughout the United States. Out of 3,000,000 employers in the United States only 311 have been cited by local Compliance Boards, and only 48 have had their Blue Eagles taken away. Of these 48, most of them have applied for reinstatement since they found that the public ostracized their stores. Moreover, in 98% of the thousands of cases of violations referred to local Compliance Boards, the employers have acted incorrectly through misunderstanding of the provisions of their code. This ought to be a fairly complete answer to statements made in certain quarters that the BRA is other than a success. The NRA on Dec. 17 modified the Blue Eagle voluntary re-employment agreement to permit all employers under it to establish an overtime schedule at the year-end for inventory purposes. In a general order issued at the recommendation of the National Compliance Board General Johnson gave permission to all persons under the agreement to ignore the limited work hours for two weeks, provided, however, that all such overtime is paid for at least at a rate of time and one-half of what the workers had been receiving. Most industries under permanent codes are already permitted this action. The NRA order said that any increase in hours must be limited to those "necessary to complete a calendar yearend inventory" and may not be extended for any other purpose. Chester C. Davis Succeeds George N. Peek as Agricultural Adjustment Administrator--Formal Announcement of Change Is Followed by Resignation of Many Peek Backers from AAA—New Administrator Was Close Associate of Former Chief, The Departmentrof Agriculture on Dec. 15 formally announced the appointment of Chester C. Davis as Agricultural Adjustment Administrator, succeeding George N. Peek, who resigned to become special assistant to the President on American trade policies, and who is acting as the head of the Trade Policies Committee now investigating the problems of United States foreign trade. An unofficial announcement of the change had been made by Secretary Wallace earlier last week. When the formal statement was given out on Dee. 15 more than a score of Mr. Peek's followers in the Department submitted their voluntary resignations. A press release issued by the Agricultural Adjustment Administration on Dec. 15 summarized Mr. Davis' career as follows: Mr. Davis has been director of the Production Division since the AAA was organized last May. In this capacity he has had supervision of all Its great programs of production adjustment. These included the cotton, wheat and tobacco campaigns and all the preparations for the current corn• and hog campaign. Already these programs have involved benefit payments to farmers totaling more than $150,000,000. 4467 Mr. Davis has worked closely with both Secretary Wallace and Mr. Peek in planning, launching and developing the work of the AAA for the benefit of farmers in every part of the United States. Mr. Davis' home is In Evanston, Ill. He is a native of Iowa. He was born on a farm in Dallas County in that State in 1887. He lived on a farm until he was 20 years old, is a graduate from Grinnell College, Iowa, and later became a farm owner and operator. For seven years he edited newspapers in Redfield, S. D., and Bozeman, Mont., and entered the field of farm journalism as editor and manager of the "Montana Farmer" at Great Falls. Mr. Davis already had been active in behalf of agriculture for many years when his selection by Secretary Wallace and Mr. Peek for the key position as head of the Production Division last May brought him into wide prominence among farmers. His association with Mr. Peek dates from the beginnings of the movement arising in the Middle West in the '208, under the leadership of Mr. Peek, for legislation which would lead to correction of the disparity then harmful to American agriculture. Mr. Davis was associated with the committee of 22, of which Mr. Peek was Chairman, which supported the McNary-Haugen bill when it was successfully pushed through Congress on two occasions but was prevented from enactment by vetoes. He was Vice-President and Secretary of the Smith Independent Organization Committee in the 1928 campaign when that committee was headed by Mr. Peek, and he became one of the farm leaders who joined the general movement of agriculturalists to support President Roosevelt In the campaign of 1932. Prior to May of this year he was associated with Mr. Peek in a company developing the industrial use of cornstalks and other farm wastes through the employment of scientific methods developed at Iowa State College. Mr. Davis worked closely with Henry C. Wallace, father of Secretary Wallace, when he was Secretary of Agriculture prior to 1925, in the period when the first cleavage began to appear between the Hoover and Wallace schools of thought with reference to the development of agriculturaltexports. Mr. Davis had been selected for a position in the Department of Agriculture and was ready to go to Washington in 1924 to take the post when the elder Wallace died. He became well acquainted with Henry A. Wallace, present Secretary, during the early controversies over farm legislation. In 1921 Mr. Davis was appointed to organize the Montana StateTDepartment of Agriculture and was Commissioner of Agriculture until 192$. It was there that he began his association with M. L. Wilson, who, since becoming chief of the Adjustment Administration's wheat section, has been appointed director of the subsistence farming program nowY being developed under Secretary Ickes, After 1925 Mr. Davis was,appointed director of grain marketing for the Illinois Agricultural Association at Chicago. He worked with Walton Peteet, Secretary of the National Council of the Co-operative Marketing Associations, which represented many of the large farm commodity groups. President Roosevelt Expands National Emergency Council to Include Members of Former Special Industrial Recovery Board—Will Co-ordinate Emergency Activities• of Government and Protect Consumers' Interests Under Codes—Holds Initial Meeting at White House—Executive Orders Issued. President Roosevelt made public on Dec. 19 the text of two Executive Orders enlarging the membership of the National Emergency Council from 10 to 13 and merging with it the Special Industrial Recovery Board, created on June 16 and headed by Secretary of Commerce Daniel C. Roper. The Emergency Council, which will act as the supreme authority in the emergency and relief program of the Federal Government, has three principal functions, as follows: 1. To enforce the provisions of codes under the National Recovery Administration and the Agricultural Adjustment Administration, 2. To furnish information requested by those seeking any Federal assistance. 3. To protect the interests of consumers under the Administration's recovery program. The Council held its first meeting at the White House on Dec. 19, and after the meeting Frank C. Walker, Executive Director, announced that the Council would be functioning soon and that State Directors, now being appointed, would meet in Washington in mid-January. The new Council members named on Dec. 19 were Attorney-General Cummings, Director of the Budget Lewis W.Douglas,and Charles March, Chairman of the Federal Trade Commission. A White House statement issued prior to the meeting said that the Council "is proceeding with a preliminary organization," including the drafting of a system for linking together local Councils with Washington "so that all emergency agencies can function effectively." Mr. Walker added to this statement certain details of the work he intends to do. These were outlined as follows in a Washington dispatch of Dec. 19 to the New York "Times": He now has a double position in the Administration, being also Secretary of the Executive Council or so-called "Super-Cabinet" formed by the President, consisting of the regular Cabinet and most of the members of the "Little Cabinet" and heads of the independent recovery and relief groups. The membership of the Executive Council and the Emergency Council nearly coincide, although the former is purely advisory and the latter directive. Hereafter each group will meet with President Roosevelt on alternative Tuesdays. The White House announcement stated that a survey for a tentative budget for the Emergency Council is being conducted, but that it is expected that the elimination of duplication of committees and agencies "will save the Federal Treasury a very large sum of money." Mr. Walker pictured to newspaper correspondents, in an interview following the Council meeting, a comprehensive program, already under way, for linking for the first time many loose ends of the recovery program. State Directors to Meet. As a first step, he is having prepared charts which will show each of the department heads and their field agents what parts they play in the recovery 4468 Financial Chronicle and relief programs and how their work is integrated with that of other departments and organizations. "We are beginning to select State directors," he went on,"who will meet here in January to hear from the heads of the departments who are menibers of the National Council their views on recovery activities. Meanwhile we are preparing a manual setting forth the recovery acts and a digest of necessary information. "We are setting up a central information bureau in Washington to dispense factual information on all recovery activities. Most of the department heads feel that this is a necessity and would be helpful to all coming here to find out where to go to seek assistance. We will do the same thing In a smaller way in various localities, although it is not definite that there will be a separate organization for each county. "Liaison officers have been appointed from the principal administrations to set up concise statements of laws and outstanding relief problems that are arising out of the various acts." Mr. Walker expects little direct expenditure by the Council, as the principal research activities are being carried out by organizations already in existence. State directors, however, will receive salaries, as will clerical forces here and in local offices. The directive committees will be composed of volunteers, just as are the Code Committees now functioning in most areas. The Emergency Council is believed to have solved what threatened to become a knotty problem for the recovery administrations through the inclusion of consumers' representatives on the direct membership of the local committees and by placing Mrs. Mary Harriman Rumsey. Chairman of the Consumers' Advisory Council, on the Emergency Council. Mr. Walker is acting only temporarily as head of the Council, having agreed to organize its activities and hold this position only until the President could find a suitable permanent executive director. This position pays a salary of $10,000 a year. The texts of the statement issued at the White House on Dec. 19 and of the Executive Orders regarding the National Emergency Council read as follows: As the next step in unifying the recovery program for the single purpose of efficiency, the President has by Executive order included all members of the Special Industrial Recovery Board in the National Emergency Council. This action adds as members of the National Emergency Council the following: The Attorney-General, the Director of the Budget, the Chairman of the Federal Trade Commission. Hereafter the National Emergency Council will assume the responsibilities and carry out the duties of the Recovery Board as provided in the Executive order of June 16 1933 and as supplemented by the Executive order of July 15 1933. The National Emergency Council is proceeding with a preliminary organization. It is seeking to select with care an outstanding citizen in each State as State Director. It is studying the extent to which It will be necessary to organize local councils. It is drafting a system of linking these councils together and with Washington so that all emergency agencies can function effectively. Until this survey is completed it will be necessary to continue the existing local committees. For this purpose the President has by Executive order withheld the abolition of these committees for 30 days from Dec. 17 1933. A survey of this projected field activity now is under way for use in the preparation of a tentative budget. From the preliminary estimates of the cost it seems very likely that operation under the Council will save the Federal Treasury a very large sum of money. The use of a single field organization instead of separate ones for each emergency agency will wipe out all needless and costly duplication of personnel and, in addition, will make for a more effective administration. The Council also is going ahead with the preparation of its plan to provide every citizen in the country with easily understood guidance for the use of the recovery and relief agencies. Its factual information is being assembled and a system is being charted for its distribution. The National Emergency Council plans to hold its first meeting Tuesday, Dec. 19. Thereafter it is expected that the National Emergency Council and the Executive Council will meet on alternate Tuesdays. EXECUTIVE ORDER. Amendment of Executive Order No,6433-A. Whereas, Executive Order No. 6433-A, dated Nov. 17 1933, Provides that the National Emergency Council "shall be composed of the following and such other members as the President may designate," and those designated therein include all members of the Special Industrial Recovery Board, appointed by Executive Order No. 6173, dated June 16 1933 (as supplemented by Executive Order No. 6205-A, dated July 15 1933). except the Attorney-General,the Director of the Bureau of the Budget and the Chairman of the Federal Trade Commission; and Whereas, it is desirable, in the public interest, that all members of the Special Industrial Recovery Board be included in the National Emergency Council and that their functions and duties be co-ordinated; Now, therefore, it is hereby ordered that all members of the Special Industrial Recovery Board, including the Attorney-General, the Director of the Bureau of the Budget and the Chairman of the Federal Trade Commission are designated and included as members of the National Emergency Council and that all functions and duties of said Board hereafter be exercised and performed by said Council. FRANKLIN D. ROOSEVELT. The White House, Dec. 18 1933. EXECUTIVE ORDER. Amendment of Executive Order No. 6433-A of Nov. 17 1933. Whereas, the last paragraph of Executive Order No. 6433-A. dated Nov. 17 1933, creating the National Emergency Council,abolishes,effective 30 days from the date of said order, the volunteer field agencies established under and for the purpose of effectuating the legislation under the authority of which said order was issued; And, whereas, it is desirable and necessary to defer to a later date the abolition of such volunteer field agencies; Now, therefore, it is hereby ordered that the effective date for the abolition of the aforesaid volunteer field agencies be and hereby is deferred to Jan. 16 1934. FRANKLIN D. ROOSEVELT. The White House. Dec. 16 1933. President Roosevelt Extends Blanket NRA Agreement to May 1—Cites Necessity of Preventing Let-Down in Jobs After Jan. 1—Estimates that 70% of Workers in Eligible Industries Will Be Under Codes as Year Ends. President Roosevelt on Dec. 20 made public the text of an Executive Order in which he invited industries and busi- Dec. 23 1933 nesses not already under approved codes of fair competition to extend their Presidential re-employment agreements four months beyond Jan. 1, the original expiration date of the agreements. Renewal will make the agreements effective until May 1, and it is expected by the President that by that date virtually all industry will be under permanent codes, thus obviating the necessity of general or blanket codes. The President also issued a statement on Dec. 20 in which he said that permanent codes now apply to 70% of all workers who will eventually be covered by codes. "In the midst of Winter," the President said, "and with many persons out of work, it is essential that the new year should not bring with it any let-down in the recovery program in the trades and industries which at that time have not come under approved codes and to which, therefore, only the President's re-employment agreement applies." Mr. Roosevelt's statement reads as follows: The President's re-employment agreement according to its original terms will end on Dec. 31. At that time permanent codes of fair competition will apply to approximately 70% of all employees who will eventually be covered by codes. In the midst of winter and with many persons out of work, it is essential that the new year should not bring with it any let-down in the recovery program in the trades and industries which at that time have not come under approved codes and to which, therefore, only the President's re-employment agreement applies. I am, therefore, inviting every employer in those trades and industries to join with me in an extension of the President's re-employment agreement for four months. By that time it is expected that the process of code. making will have been virtually completed. I urge all employers in trades and industries not covered by codes to co-operate by continuing to maintain higher wages and shorter hours. The need for their help is still great. Employers joining with me in this extension of the President's re-employment agreement may continue to display the Blue Eagle as a symbol of their co-operation and those few employers who have not heretofore signed the agreement may sign it as extended and upon delivering a signed certificate of compliance to the post office may obtain a Blue Eagle. Display of the Blue Eagle on or after Jan. 1 1934, by an employer whose business is not entirely covered by an approved code will be treated as an acceptance of the extension of the President's re-employment agreement and a representation that he is complying with it for that part of his business not covered by approved codes. The text of the Executive Order providing for extension of the President's re-employment agreement follows: I, Franklin D. Roosevelt, President of the United States, pursuant to the authority vested in me by Title I of the National Industrial Recovery Act, approved June 16 1933, and otherwise, do hereby provide as follows, and do hereby prescribe the rules and regulations hereinafter set forth which I deem necessary for carrying out the purposes of Title I of said Act: I hereby offer to enter Into the President's re-employment agreement with every employer, in so far as he is not covered by an approved code of fair competition, for a further period of four months from Jan. 1 1934 to April 30 1934, or to any earlier date of approval of a code of fair competition to which he is subject. Employers who shall have already signed the President's re-employment agreement before Jan. 1 1934, may accept this offer of extension by display of the Blue Eagle on or after Jan. 1 1934. Employers who shall not have signed the President's re-employment agreement before Jan. 1 1934, may accept this offer of extension by signing the President's re-employment agreement. All substitutions and exemptions approved, and all exceptions granted to particular employers, before Jan. 1 1934, will apply to the President's re-employment agreement as so extended. Display of the Blue Eagle on or after Jan. 1 1934, by an employer who shall have signed the President's re-employment agreement prior to Jan. 1 1934, shall be deemed an acceptance of this offer of extension; and for the purpose of my Executive Order dated October 14 1933, which, among other things, prohibits false representation of compliance with the provisions of the President's re-employment agreement, display of the Blue Eagle by any employer on or after January 1 1934, shall be deemed a representation that he is complying with the President's re-employment agreement, as extended by this Executive Order. I hereby authorize the Administrator or Industrial Recovery to make such rules and regulations as he may deem necessary to supplement, amplify or carry out the purposes and intent of this Executive Order, FRANKLIN D. ROOSEVELT. The White House, Dec. 19 1933. NIRA Endorsed by Automobile Parts Industry—E. P. Chalfant, Vice-President of National Standard Parts Association Says Actilias Done Tremendous and Inestimable Amount of Good. Tremendous benefits for the whole country and for the automotive parts industry particularly are credited to the National Industrial Recovery Act in a bulletin addressed to 500 parts manufacturers and wholesalers by E. P. Chalfant, Executive Vice-President of the National Standard Parts Association, it was announced on Dec. 15 by the National Recovery Administration. In the bulletin—"A Timely Message"—Mr. Chalfant suggests the same "difference of opinion that makes horse races popular" probably accounts for some of the current criticism of the recovery program. Mr. Chalfant continued: "But I say that regardless of the future history of the NIRA as such, the tremendous and inestimable amount of good which it has already brought about has made it worth a great deal more to us as a Nation, and particularly as an industry, than it can possibly cost us. Financial Chronicle Volume 137 'I refer to the new understanding prevailing amongst competitors which has become a by-product of the hundreds of manufacturers' code meetings in recent months, and will likewise result from local jobber group meetings on the same subject. "I don't mean to infer for a moment that competitors are now invariably 'going around together.' "But I do know for a fact that the development of personal acquaintanceships and of code teamwork between the 'little fellows' and the 'big fellows' has been accomplished by readjustments which have been, and will continue to be, favorably reflected in the distribution methods and hence in the financial statements of both jobbers and manufacturers." California Raisin Packers' Code Accepted—Independents Protest Price as Too High for Start. From Fresno, Calif., Dec. 7 advices to the Los Angeles "Times" reported that as commercial packers completed their perusal of the new marketing agreement for 1933 raisins that day and sent the document to the Agricultural Adjustment Administration in Washington for approval, a raisn growers' committee prepared to start work on an agreement covering the crops of 1934 and future years. The account continues: Assembly Meeker of Kerman was choosen Chairman of the Growers' Committee, which was created last night at a meeting of groups of five growers elected in 28 districts of the San Joaquin Valley. Mr. Meeker's election was almost unanimous and W.C.Christiansen was elected Secretary. defeating Thomas F. Lopez, Fresno attorney, who was a representative of the growers at recent conferences in San Francisco and Washington. To Meet Tuesday. The Committee has set its first meeting here for Tuesday to lay preliminary plans for a permanent organization through which the raisin producers can create and operate a control program. The agreement covering the remainder of the 1933 crop as approved by the major packing organizations provides for a minimum price of 3 cents a pound to the growers for standard grade Thompson raisins, and for loans of $52.50 per ton by the Federal Government to growers who want to hold their fruit for a rising market. Independents Protest. pr The smaller independent packers joined to-day in sending a protest to Washington against making the minimum price clause effective immediately. They want the present price set at 3 cents a pound and not increased to the full 3h-cent minimum until next spring. They seek this arrangement because of the advantage they say the higher minimum price will give the large packers who can afford to buy all the raisins they need at this time and hold them against a rising market, while the smaller operators cannot do this because of lack of money. 60 Industries Provide for Exports Under Code—National Export Code Committee Secures Agreement for Foreign Traders. More than 60 industries of the United States largely engaged in exporting have approved the conditions worked out by the National Recovery Administration under which exporting industries shall be exempt from NRA code provisions, declares a statement by the National Export Code Committee headed by E. P. Thomas, President of the National Foreign Trade Council, and rdpresenting foreign trade groups throughout the country. The informatioin issued by the Council also said: The formula agreed upon with the exporters is published in the new Suggested Outline for Codes issued by General Johnson in the form of "Suggestions to Assist Trade and Industry in the Preparation of Codes." The preparation of the export trade article has been under the supervision of W. S. Culbertson, recent Ambassador to Chile and former member of the Federal Trade Commission and of the Tariff Board, who has been acting as Foreign Trade Adviser to the Industrial Advisory Board,and is embodied in Article VIII of the new suggested outline, as follows: Export Trade. "Section 1. No provision of this code relating to prices or terms of selling,shipping or marketing,shall apply to export trade or sales or shipments for export trade. "Section 2. Subject to the approval of the Code Authority,the exceptions established by this section shall apply also to sales or shipments of materials actually used in manufacture for export trade.a Discussions leading up to the settlement of the export status under the codes have been proceeding among the export groups for the past four months and have been concentrated since early in October in the hands of the National Export Code Committee, representing export interests in San Francisco, Chicago, Baltimore, Philadelphia, New York and other cities. More than 4,000 export firms have been notified of the nature and limits of the exemption formula, through the co-operation of the National Federation of Foreign Trade Associations. Exporters generally regard the present position, enabling these industries and agricultural producers to continue in foreign markets, as a satisfactory assurance that they will continue to provide additional employment anti share in the recovery program. Of the 215 codes that have been submitted to date, 62 have adopted an exemption clause in a form approximating the above recommendation. Twenty-five of these industries have adopted the so-called parenthetical exemption which confirms the application of the code to the Continental United States in matters of sales and shipping practice while retatn ng in full force the application of the hours, wages and general trade practice provisions of the code. In addition about 36 industries have directly provided that sales, shipping and marketing provisions in their codes shall not apply to export trade for materials used in manufacturing for export trade. In each case the need for export exemption has been considered directly by the industry concerned and has been decided with the approval of the Code Authority assigned by the NRA. Settlement of this question has caused much relief among export manufacturers and producers since it was a A provision may be introduced into the administrative section of the code, providing that questions relating to production for export and sale for export, not enumerated in the above section, may be submitted by any member of the trade (or) industry to the consideration of the Code Authority; and that its decision thereon shall be submitted to the Administrator and shall not be effective unless and until approved by him." 4469 mistakenly understood at first, as no "blanket exemption" for exports was anticipated under the NRA, that export business would consequently be obliged to conform to conditions designed exclusively for domestic business in the United States, with no regard to the competitive necessities arising from foreign competition. This confusion was clarified by a series of conferences, following the appointment of Mr. Culbertson, in which the exporters made it evident to the NRA that only with the ability to compete abroad could they resume the employment of the pre-depression export quota of approximately 2.500,000 men. Commenting on this situation, E. P. Thomas, President of the National Foreign Trade, says: Every exporter should at once make certain that his industry is properly provided for in the matter of export exemption. General Johnson's present suggested outline for codes states this model form of export exemption in very clear language and any exporter has only himself to blame if he finds in the future that his firm Is bound by trade practices which were written with exclusive regard to the domestic situation and which only through the inadvertence of the Code Authority or through the negligence of the exporter have become applicable to export business. Accordingly, the National Foreign Trade Council, the Federation of Foreign Trade Associations, the American Manufacturers Export Association and other export groups are notifying exporters throughout the country of the definite terms under which this export exemption has been agreed upon and are urgung that they lose no time in making certain that export interests are given the exemptions intended to be accorded to them by the NRA. The present progress in putting the codes into application may be judged from the fact that 110 codes have already been approved by the President, hearings have been concluded on 55 more, there are 50 completed codes on which hearings are still to be scheduled, and upwards of 650 codes are in various early stages directed toward agreement and approval in Washington. The National Export Code Committee which has secured the above settlement for exports comprises the following: E. P. Thomas, Chairman; R. S. Bigelow, Reginald F. Chutter, Francis T. Cole, Carl C. Jensen, Carl W. Linscheid, Wm. H. Mahoney, C. C. Martin, Gilbert H. Montague, W. W. Nichols, E. R. Parker, C. M. Peter, General Palmer E. Pierce, George Quisenberry, George P. Reinberg, L. D.Seymour and Wm.S. Swingle. Edison Co. Employees Association Refused Injunction to Compel Company to Deal With Labor Unit. Justice Joseph M. Callahan of the New York County Supreme Court on Dec. 11 denied an application by the Edison Employees Equity Association to compel the New York Edison Co. and the United Electric Light & Power Co. to permit its members to deal with the company directly in labor contracts under the President's Re-employment Agreement. The decision of the Court was based principally on the fact that the "Federal agencies have denied applications for similar relief" and that the purpose of the State law under which suit had been brought was "solely to secure co-operation and uniformity with the acts of the Federal Government and its agencies." Justice Callahan also ruled that the plaintiffs had failed "to show interference, restraint or coercion on the part of the defendants sufficient to warrant the issuance of a temporary injunction." Commenting on the decision, the New York "Journal of Commerce" on Dec. 12, said in part: The decision of the Court rules on several questions of importance under the NBA, in the opinion of the companies. It was held that the right of an employee or a labor organization to sue in the State courts, under the laws enacted at the special session of the Legislature, where such employee seeks to enforce a code or re-employment agreement under the NRA relates to a code or agreement that has been filed with the Secretary of State of the State of New York. It was held that such right does not exist except as to a filed code or agreement. Attack Overruled. The various acts complained of by the Equity Association as committed by the two companies in connection with collective bargaining were held not to constitute interference, restraint or coercion within the meaning of Section 7a of the Recovery Act. The attack on the validity of the employees' plan for collective bargaining was also overruled. This plan had been approved by approximately 90% of the employees. The Court ruled that "the plaintiffs fail to show that they have exhausted their remedies at law. However, if it be deemed that such remedies have been exhausted, then the relief sought herein should be denied for the reason that the Federal agencies have denied application for similar relief and the purpose of the State statute is solely to secure co-operation and uniformity with the acts of the Federal Government and its agencies." Automobile Code Extended to Sept. 1 1934—General Johnson Approves Request of Industry—Merit Clause to Remain in Code—Manufacturers Report Optimism for 1934. The code of fair competition for the automobile industry will be extended to Sept. 1 1934, according to an announcement on Dec. 17 by General Hugh S. Johnson, Recovery Administrator. General Johnson said that extension of the code, which was due to expire on Dec. 31, had been made at the request of The National Automobile Chamber of Commerce. The request was for the renewal of the entire code, with no changes. The automobile industry is the second large industry to petition for an extension of its code, similar action having recently been taken by the steel industry. Reports from Washington said that the Administration considers the attitude of these two important 4470 Financial Chronicle industries as indicating that business leaders who were originally skeptical regarding the National Recovery Administration are now demonstrating their approval of the code system. General Johnson said that he would not seek to remove the "merit" clause from the automobile code, since he considered that President Roosevelt's statements on this controversial subject disposed of the issue. The clause which reserves to employers the right to hire and discharge employees on a merit basis, regardless of union membership, is included in the automobile code, but has been eliminated from all others. President Roosevelt has since ruled that this right existed but that it must not be used to discriminate against unionists. • Associated Press advices from Detroit on Dec. 17, outlining the current situation in the automobile industry, said: The extension until Sept. 1 1934, of the NRA automotive code, announced at Washington to-night, comes on the eve of one of the industry's most vigorous sales drives and at a time when optimism is apparent in all quarters. In the months in which the code has been in its trial phase encouraging reports of sales, production and employment have been issued by various manufacturers, indicating that 1933 has marked a definite up-swing in the industry. Continuation of the code, with its prescribed limitations on hours of work, coupled with an expected improvement in business In 1934, is seen in some automotive circles as insuring continued employment for the thousands of workers the industry requires. The code, apparently, will continue in force without the inclusion of the Ford Motor Co. among the signatories. The Ford company, however, has asserted that it is observing all the provisions of the agreement,short of actually signing the code and displaying a Blue Eagle, and Administrator Johnson has indicated that he is content to allow the Ford company to continue as a de facto party to the pact. Possible price increases still are the subject of speculation in trade circles. While the industry is understood to be making every effort to avert any Increases that might be large enough to restrict a buyer market generally conceded to be on the upgrade, most retailers who have studied the new model plans and statements from executives in the manufacturing division expect some increases. NRA Leather Code Reported Beneficial to Both Labor and Industry. According to the National Recovery Administration both labor and industry have materially benefited under the code of fair competition for the leather industry, as is shown by a preliminary report of the Tanners' Council of America to the NRA. The Council is the co-ordinating agency for the trade and acts in that capacity for the NRA. An announcement issued on Dec. 11 by the NRA continued: The leather code was approved by the President on Sept. 7, and accordingly has been under operation for three months. The preliminary report shows a compilation of wages, hours of labor and employment in the leather industry for a sample week nearest to Oct. 15. The following substantial results are shown: Employment increased 34%. Total payrolls increased 56.1%. • Average hourly earnings increased 27.6%. Average weekly earnings increased 16.5%. Total man hours worked per week increased 22.3%. Average weekly hours of work per employee fell 8.6% • In the same connection the monthly production of the tanning industry In October, according to the preliminary figures was greater than the March production by 18.8%. LIOn the basis of the same monthly comparison the number of employees In April 1933 was 36.892 and in October 1933. 49,434. The average wage per hour in April was 41.7 cents while in October it was 53.2. The average hours worked per week in April was 40.4. while in October the work week had been reduced to 36.9 hours. The average weekly wage in April was $16.85,jwhlle in October it had increased to 519.63. The figures include the tanning, currying and finishing, the leather belting and mechanical leather, the cut sole and similar branches of the Industry. Ford Co. Strikers Telegraph President Roosevelt Charging Company Has"Flouted" NIRA—American Federation of Labor Sees Failure to Observe Collective Bargaining Provision of Code. Strikers at the Ford Motor Co. plant in Edgewater, N. J., after a meeting in Newark, on Dec. 17, sent a letter to President Roosevelt in which they charged that the Ford Co. "has persistently flouted" the provisions of the NIRA. Similar charges were made earlier to General Hugh S. Johnson, Recovery Administrator, by the American Federation of Labor, which said that the motor manufacturer has failed to observe the collective bargaining provisions of the automobile code. The letter which was sent to the President after a meeting of 350 Edgewater strikers at Newark read, in part, as follows: The Ford Motor Co. has persistently flouted the provisions of the NIRA by refusing to bargain collectively with us through representatives of our own choosing. The Ford Motor Co. has continually defied the National Government by refusing to accede to the proviso of the legislation which you so courageously fostered. Now, Mr. President, we ask you—does the Government of the United States exist to safeguard the property rights of one insurgent, Mr. Henry Ford, or does the Government of the United States exist to promote the general welfare of all? This is the issue, and either the Government is going to act courageously to assert its sovereignty in this situation of it admits the inability of the Government to face the defiance of one man which can eventuate in nothing but chaos and catastrophe. Dec. 23 1933 List of Companies Filing Registration Statements with Federal Trade Commission Under Securities Act. Thirty-six million dollars worth of security issues filed for registration under the Securities Act were made public on Dec. 18 by the Federal Trade Commission. They include a $34,000,000 investment company issue other new capital enterprises amounting to $1,212,880, certificates of deposit in matters of reorganization totaling close to $785,000, and a reorganization plan amounting to $64,800. Effective dates of these statements will later be announced. The list of registration statements follows: Reorganization Committee for Crown Drug Stores, Inc. (2-500), St. Louis, calling for deposits of 7% cumulative convertible preferred stock and common stock of Crown Drug Stores, Inc., Kansas City, Mo., of a market value of $611,144 as of Nov. 29 1933. Filing fee is $61.11. On Nov. 20 1933. there were outstanding 25,912 shares of the preferred stock and 137,014 shares of the common stock. Also outstanding was the offer of Crown Drug Stores, Inc., to exchange one share of its preferred stock for each of 20 shares of preferred stock of Steinberg's Drug Stores, Inc.. then outstanding with the public. Crown Drug Stores, Inc., is a holding company for the outstanding capital stock of Crown Drug Co., a Missouri corporation, which operates directly through its subsidiary, Steinberg's Drug Stores, Inc., a chain of retail drug stores in Kansas City and its vicinity, and Tulsa and Oklahoma City, Okla. All outstanding stock of Steinberg's, except the 20 shares of preferred, is owned by Crown Drug Co. The Committee calling for deposits consists of T. L. Evans, Kansas City, President and Treasurer of Crown Drug Stores, Inc.; I. A. Stevens, and J. Gates Williams, St. Louis. Gilpin Eureka Consolidated Mines, Inc. (2-501), Kansas City, Mo., a Missouri corporation owning property in the State of Colorado and proposing to mine gold, silver, lead, zinc, and copper ores, offers 65,000 shares of common stock at an aggregate price of $65,000. Filing fee is $25. Among officers are: Joseph A. Egle, Kansas City, Mo., President: Conrad W. Willmann, Boulder, Cob., Secretary-Treasurer, and G. A. Burgdorfer, Overland Park, Kan., Assistant Secretary-Treasurer. Bondholders Committee for 10-Year 6% Collateral Dust Sinking Fund Gold Bonds of Woods Bros. Corp. (2-502), Chicago, calling for deposits of the above listed bonds in the principal amount of $2,500,000, of which approximately $1,710,300 is reported to be unpaid and outstanding. Woods Bros. Corp. at the time the bonds were issued, was a holding company for stocks of Woods Bros. Co., Woods, Bros. Realty Co., Woods Bros. Construction Co., and Woods Bros. Industrial Corp. The businesses conducted by these subsidiaries were engineering and construction on inland waterways and investment for resale in industry, farm and residential properties. Market value of the bonds is reported as $17 per 5100 or $205,785 on which Is paid a filing fee of $25. The Committee consists of Edwin M.Stark, Samuel W. White, and Eugene V. R. Thayer. Chicago. D. Dean McCormick, 10 S. LaSalle Street, Chicago, is designated to receive notices. Indus.rial Finance and Mortgage Corp. (2-503), Baltimore, a Maryland corporation engaging in the loan business and proposing to offer 2,500 shares preferred stock aggregating $250,000 in price, Filing fee: $25. Among officers are: Charles M. Cohn. President; William J. Casey, Treasurer, and L. Vernon Miller, Secretary, all of Baltimore. Automatic Fire Escape Stairway Corp. (2-504), Portland, Ore., manufacturing a patent type of automatic-hydraulic stair for fire escapes, proPosing to issue $20.000 in common stock. Filing fee is $25. Among officers are: Jesse A. Tiffany, President; A. F. Gross, Vice President and Treasurer, and Elmer E. Pettingel, Secretary, all of Portland, Ore. Westminster Distilling Co. of Maryland, Inc. (2-505). Baltimore, a Maryland corporation proposing to manufacture and sell liquor, offering $850,000 in common stocks; paying a filing fee of $85. Underwriters are: William Bartholmew & Co., Inc., Cleveland. Among officers are: Louis A. Stabler, Lutherville, Md., President; A. Morris Schuman, Baltimore, Treasurer and chief financial and accounting officer, and Philip E. Wolfe, Baltimore. Secretary. F. & W. Grand Properties Corp. Reorganization Committee (2-506). New York, calling for deposits of F. & W. Grand Properties Corp., a chain store system, the issue to consist of 6% convertible sinking fund gold debentures due Dec. 15 1948, amounting to $1,625,000 principal to be called out of $2,955,000 outstanding. $1,330,000 having already been deposited; also, claims duly filed against the bankrupt estate of the Issuer amounting to $415.590.42. A filing fee of $43.40 was paid the Commission. Members of the Committee are: Darragh A. Park, New York; D. C. W. Birmingham, Pittsburgh; John K. Ellen, William B. Neergaard, and Andrew K. Sharps, New York. Group Securities. Inc. (2-507), Jersey City, a Delaware corporation dealing in investments, proposes to Issue $34,000,000 capital stock, paying a filing fee of $3,400. Principal underwriters are: Distributors Group. Inc., New York. Among officers are: Hugh W. Long, Chairman of the Board; John Sherman Myers, President; T. F. Chalker, Executive Vice President and Treasurer, and Leslie L. Vivian, Vice President and Secretary, all of New York, Tri-State Poster Advertising Co., Inc. (2-508), diddleton, N. Y., a New York corporation engaged in poster advertising and theater operation, proposes to issue under a plan of readjustment or reorganization bonds in the amount of $64,800. Filing fee is $25. The new bonds are to be exchanged for the old bonds deposited on the basis of 45 cent on the dollar. There is to be no sale of bonds, only the exchange of new for old. Person authorized to receive notices is 0. S. Hathaway, Jr., 28 James Street, Middletown, N.Y. Officers are: 0.S. Hathaway,President;0.S. Hathaway, Jr., Vice President, and Mary E. Adelman, Socretary,Treasurer, all of Middletown, N. Y. Bro-Sak, Inc.,(2-509), New York, a New York corporation manufacturing and selling food products and pharmaceuticals, proposes to issue 12,788 shares of common stock at $10 a share; paying a filing fee of $25. Among officers are: A. A. Anderson, President; S. B. Mathews, Vice-President; And W. D. Ward. Secretary, all of New York. - On De722 the-Commission announcing he fillwith-it of security issues approximating 85,000,000, of which about $2,000,000 represent new capital enterprises. These issues include that of a box paper manufacturing company manufacturing its products from rice straw, a refinancing plan for the City of Daytona Beach, Fla., and a reorganization plan of a Philadelphia producer of building materials. Volume 137 Financial Chronicle The list of registration statements follows: 4471 offering of the securities herein exempted, together with the net proceeds to be realized from the issue herein exempted, shall not exceed $100,000. Where securities are subscribed for or purchased from the issuer on a deferred payment plan, the date of the making of the subscription or purchase contract shall be deemed the date of the issue of the securities, for the purposes of this paragraph. The amendment becomes effective as of Dec. 21 1933. Jessie Gold Mines, Ltd. (2-510). Smithers, British Columbia, Canada U. S. Office, 1222 Northern Life Tower, Seattle, Wash., a British Columbia incorporated joint-stock company with non-personal liability, owning and developing gold mining property at Smithers, B. C., and proposing to issue in the United States 100,000 common or ordinary shares of treasury stock at an aggregate price of $25,000. Among officers are: Joseph Gerrald Stephens, President; Leonard Sydney McGill, Secretary-Treasurer and Federal Trade Commission Directs Producers, Inc., Manager; and Hugh Boswell, Auditor, all of Smithers, B. C. to Amend Registration Statement Filed Under Pacific Coast Pulp and Paper Corporation (2-511), Richvale, Calif., a DelaSecurities Act. ware corporation proposing to manufacture box-board, paper and allied products from rice straw, issuing 4,508 shares of preferred stock at $100 The following announcement was issued Dec. 21 by the per share,4,508 shares of common stock at $25 per share, and 5,000 shares of Federal Trade Commission. bonus or promotion stock; aggregate: $563,500. Among officers are: D. M. The Federal Trade Commission has ordered Gold Producers, Inc., of Thomson,President, and A. J. Lofgren, Secretary, both of Richvale. Calif.. Salt Lake City, Utah, a Nevada corporation organized to promote mining and Jessie L. Gladmon, Treasurer, Oakland, Calif. operations in California and Montana, to amend a statement in which it Holman D. Pettibone and Others (2-512), Chicago, a committee calling for filed for registration under the Securities Act 6,000,000 shares of common $462.500 worth of first mortgage real estate bonds in a plan of readjustment stock. or re-organization of Elmer J. Eklund, former architectural estimator assoEffectiveness of the company's registration statement will be suspended ciated with R. Bernard Kurzon, Chicago architect. Entire unpaid principal until the data necessary for compliance with the Act are received. and interest on the bonds was due and payable Aug.4 1933, under the terms The stock listed for registration was described as being issued free but securing the bonds by reason of default in payment of interest of a trust deed as being assessable for the purpose of financing. and principal due June 15 1932. Property conveyed as security for the The Commission, in an opinion filed with the stop order, finds to be bonds is a parcel of Chicago real estate. Members of the protective comuntrue the respondent's statements to the effect that the stock was not mittee are Holman D. Pettibone, L. T. Kelley, Jacob Best, S. T. Kiddoo to be sold but was to be given away. Read. and Edwin L. Warner Co. (2-513), Philadelphia, producer and distributor of building materials, a Delaware corporation, proposing to issue, pursuant to a plan of NRA Names Government Members of 90 Code Authorreadjustment or reorganization, bonds amounting to $5,840,000 at a market ities—Designated to Protect Interest of General value of $15 Per $100 or $876,000; old first preferred stock amounting to Public and of Employees—General Johnson Warns 27,341 shares at a market value of $9 a share or $246.069; old second preferred stock of 53,500 shares at a market value of $1 per share or $53,500; Against Dictation or Coercion. and common stock of 234,242 shares at a market value of $1 a share or The National Recovery Administration on Dec. 13 $234,242. Total aggregate: $1.409,811. The new securities will not be announced the appointment of Government representatives offered to the public but will be issued in exchange only to present holders of securities of the company. Among officers of the new organization are to 90 code authorities, charged with the duty of seeing that. Charles Warner, President, and Alfred D. Warner, Jr., Vice-President and "provisions of the agreements for fair competition are strictly Treasurer, both of Wilmington, Delaware. and George D. Van Sciver, Philadelphia, Chairman of the Board. complied with in the interests of the general public,consumers Croft Brewing Company (2-514). Boston, a Delaware corporation manuand employees." The terms of the Administration appointees facturing beer and other malt beverages, proposed to offer 777,470 shares of will be for one year, and in cases where two or more members common stock at a proposed maximum offering price of $971,837. Underare named the terms will expire at different times, so as to writers are Fenner, Beane and Ungerleider, 67 Broad Street, New York. Among officers are Ti, F. Bischoff, President, Edward A. Burkhardt, Secassure Government representation on the code authority at retary, and John L. Lincoln, Treasurer, all of Boston. all times. General Hugh S. Johnson, Recovery AdminisEaton & Howard Accumulative Fund (2-515), Boston, a Massachusetts trust engaged in management as a single fund of amounts received from benetrator, said that Administration members of the code authorficiaries, proposes to issue certificates of beneficial interest in the trust at an ities have been instructed "to avoid the fact or appearance aggregate price not to exceed $250,000. The following are trustees of the of dictation or coercion, and function as co-workers .in an company: Charles F. Eaton, Jr., and W. Elliott Pratt, Jr., of Wellesley. Massachusetts; John G. Howard of Cambridge; Houghton Carr of Hingham undertaking of public interest, concerned only infaithful and John MacDuffie, II, Brookline. administration of the code." The duties of the AdminisConservative Personal Loan Company,Inc.,(2-516), New York, a New York tration code representatives were summarized as follows by corporation engaged in loaning money, credit, goods and other things in action in the amount of $300 or less, proposes to issue 50,000 shares of parthe NRA on Dec. 13: ticipating preferred stock at an aggregate price of $625.000. Principal 1. Refer with recommendation to the administrator through the diviunderwriters are Conservative Credit System of New York, Inc. Among sion administrator those matters mentioned in the code as being subject officers are J. Gay Seabourne, President, Joseph Getzoff, Secretary, and to review and or the approval of the administrator. Maureen E. O'Kelly, Treasurer, all of New York. 2. Recommend to the division administrator such other matters as in Bondholders' Refunding Association of Daytona Beach, Florida (2-517). his judgment are important to the welfare of the industry, or to the public a'comraittee calling for deposits of the City of Daytona Beach, a municipal interest, or to the consumers or employees affected by the provisions of the corporation, the issue including all unpaid coupons which.have matured code. during the calendar year 1933. At the present time these will include all 3. Through the code authority secure complete assent to and complicoupons maturing subsequent to April, 1933. They are based on an average ance with all provisions of the code by each unit of the industry. 0, the maximum amount of coupons called for deposit Interest rate of 5Ji7 4. Assist the code authority in connection with the preparation of recombeing $191,500. Funded debts of the corporation include general bonds in mendations for necessary interpretations, modifications and additions to amount of $2,863,566; water bonds, $268,691; and assessment bonds. $5347,the code. Consult with the division administrator in reference thereto. 934. The protective committee consists of C. E. Harrington, Port Huron, 5. Warn and guard against threatened deviations from the code of nonMichigan; J. J. Shambaugh, Des Moines, Iowa; Feldie Katz, Cincinnati, observance of its terms or action contrary to the principle of Nira. Ohio; and Richard P. Lyman, Jr.. Lansing, Michigan. 6. Constantly scrutinize the operation of the code and see that it does Nineteen Thirty-Two Trust Fund (2-518), Boston, a Massachusetts trust not permit or promote monopolies nor tend to eliminate or oppress small dealing in investment and re-investment offunds in securities of corporations enterprises. and governments, proposes to issue $1,000,000 in shares without par value. 7. Advise with the code authority in seeing that its affairs are handled Trustees of the company are: S. Howard Martin and Archie A. Way. Melin a co-operative and fair manner with respect to all units under the code, rose, Massachusetts; and Howard N. Flanders, Malden, Massachusetts. making sure that the provisions of the code are strictly adhered to with an Divide Gold Mining Corporation (2-519), Laramie, Wyoming, a Delaware equitable and fair settlement of all matters covered by the code pertaining corporation proposing to mine silver and gold in Wyoming, issuing 200,000 to the interests of the general public, consumers, or employers. shares of common stock at an aggregate price of $200,000. Principal under8. Assure himself and the division administrator that the industrial writer is W. M. Harvey, 25 Broad St., New York. Among officers are: members of the code authority are truly representative of the entire industry Andrew J. Hull, President; Bernard Visschers, Treasurer; and Harmon E. and elected by a method fair and equitable to all concerned. Rosier, Secretary, all of Laramie, Wyoming. In making public the above lists the Commission said: In no case does the act of filing with the Commission give to a security the Commission's approval or indicate that the Commission has passed on the merits of the issue or that the registration statement itself is correct. Lists of securities issued by the Commission were given in our issue of Dec. 16, page 4304. Federal Trade Commission Amends Rule Concerning Notes and Bonds Secured by Real Estate Mortgages. The Federal Trade Commission announced on Dec. 9.0 its amendment of the rule adopted Nov. 1 1933, concerning notes and bonds secured by real estate mortgages and exemption of issues the aggregate amounts of which do not exceed $100,000. The Commission's announcement of Dec. 20 said: Part II of that rule provides exemption from registration requirements of securities comprising an issue no portion of which is to be issued otherwise than for cash, if the Issue complies with certain conditions. Among the conditions are those stated in Paragraph 3, to the effect that net pro.. coeds obtained from all securities, including the net proceeds from the issue exempted, shall not exceed $100,000. To this paragraph is added by the amendment the provision that where the securities are subscribed for on a deferred payment plan, the date of the subscription or the purchase contract shall be deemed the date of issue of the securities. Full text of the amended paragraph 3 is as follows: That the net proceeds, after deduction of all expenses of distribution, realized by the issuer from all other securities, except such as are described in section 3 (a). (3). issued by such issuer, within one year prior to the The list of Administration code authority members follows Air Transport—E. E. Hughes. W. W. Howes, Second Postmaster General and Eugene L. Vidal, Chief, Aeronautics Branch of Department of Commerce. Asphalt Shingle and Roofing—William Lawson. All Metal Insect Screen—Russell M. Searle. Anti-Friction Bearing—Neal W. Foster. Artificial Flower and Feather—Dr. Earl Dean Howard. Asbestos—George S. Brady. American Petroleum Equipment Industry and Trade—George S. Brady. Automatic Sprinkler—Ralph J. Fogg. Automobile Manufacturing—Karl J. Ammerman. Bankers—Frank W. Simmonds. Builders Supplies—Edward A. Selfridge. Buff and Polishing Wheel—Neal W. Foster. Buffing and Polishing Composition—Neal W. Foster. Boiler Manufacturing—Neal W. Foster. Business Furniture, Storage Equipment and Filing Supply—Walter A. Janssen. Cotton Textile Industry—Hugh S. Johnson, Nelson Slater and Leo Wolman. Cement—Barton W. Murray. Chinaware and Porcelain—R. B. Paddock. Cleaning and Dyeing—H. B. Ludlum Jr. Cast Iron Soil Pipe—H. M. Halsted Jr. Copper and Brass Mill Products—H. 0, King. Compressed Air—Neal W. Foster. Cotton Garment and Shirt—B. H. Gitchell. Canning and Packing Machinery—George S. Brady. Cigar Container—E. B. Shultz, Crushed Stone, Sand and Gravel and Slag—B. R. Value. Concrete Masonry—Ralph Fogg. Excelsior and Excelsior Products—R. B. Paddock. 4472 Financial Chronicle Fabricated Metal Products Mfg.and Metal Finishing and Coating Industry —Laurence J. Martin. Farm Equipment—George S. Brady. Funeral Supply—R. B. Paddock. Fire Extinguishing Appliance Manufacturing—J. Reed Lane. Floor and Wall Clay Tile—Ralph Fogg. Gasoline Pump Manufacturing Industry—R. B. Paddock, R. E. Langston and A. E. Davenport. Gas Appliances and Apparatus—H. M. Halsted Jr. Glass Container—George S. Brady. Gas Cock Industry—George S. Brady. Gear Manufacturing—Neal W. Foster. Hotel Industry—James B. Dickey. Heat Exchange—Neal W. Foster. Hosiery—Dr. George W.Taylor, University of Pennsylvania. Hardwood Distillation—Charles H. Herty and F. J. Patchell. Investment Bankers—C. N. Weislger Jr. Industrial Supplies and Machinery Distributing—Neal W.Foster. Knitting Braiding and Wire Covering Machinery—George S. Brady. Lime Industry—W. V. Brumbaugh and Ralph Fogg. Limestone—Barton W. Murray. Leather and Woolen Knit Glove—Ralph Abercrombie. Laundry and Dry Cleaning Machinery—George S. Brady. Malleable Iron—H. M. Halsted Jr. Motor Bus—E. E. Hughes. Millinery and Dress Trimming Braid and Textile—B. H. Gitchell. Machine Tool and Equipment Distributing—Neal W. Foster. Men's Garter, Suspender and Belt—Nelson H.Dodge and A. C. Knothe. Machine Tool and Forging Machinery—Neal W.Foster. Motor Fire Apparatus—J. Reed Lane. Mopstick Industry—E. B. Shultz. Newsprint—W. W.Pickard and Roy C. Holllss. 011 Burner Industry—R. B. Paddock, Lauren E. Seeley, Harold Sweatt and Harry F. Tapp. Paperboard—W. W. Pickard. Pipe Nipple Manufacturing—Wm. Lawson. Precious Jewelry Producing—R. B. Paddock. Pyrotechnic Manufacturing—Capt. J. F. Battley. Printers' Roller—Neal W. Foster. Plumbago Crucible—Neal W. Foster. Pump Manufacturing—Neal W. Foster. Packaging Machinery—George S. Brady. Piano Manuf4cturing—R. B. Paddock. Paper and Pulp—W. W. Pickard and Charles Addoms. Retail Jewelry Trade—James B. Dickey. Retail Lumber and Building Materials Industry—Edward A. Selfridge. Rock Crusher Manufacturing—George S. Brady. Road Machinery Manufacturing—George S. Brady. Reinforcing Materials Fabricating—Prank Upman. Steel Casting—H. 0. King. Special Tool, Die and Machine Shop—Neal W. Foster. Steel Tubular and Firebox Boiler—Neal W. Foster. Shovel, Dragllne and Crane—George S. Brady. Structural Clay Products—Ralph J. Fogg. Textile Machinery Manufacturing—George S. Brady. Terra Cotta—Ralph Fogg. Upholstery and Drapery Textile—H. B. Ludlum Jr. Underwear and Allied Products—H. B. Ludlum Jr. Vitrified Clay Sewer Pipe—Ralph J. Fogg. Wool Felt Manufacturing—A. Henry Thurston. Wholesale and Retail Food and Grocery—C. W. Smith. Washing and Ironing Machinery—J. G. Cowling. Warm Air Furnace—Beverly S. King. Wood Plug Industry—E. B. Shultz. Waterproofing, Dampproollng Caulking Compounds, and Concrete Floor Treating Industry—Russell M. Searle. General Johnson Predicts 85% of All Labor Will Be Under NRA Codes by Jan. 1—President Has Already Approved 168 Codes—Finds Strong Public Support of NRA. General Hugh S. Johnson, Recovery Administrator, asserted at a press conference on Dee. 19 that National opinion had swung into strong support of the NRA within the two previous weeks. He predicted that 85% of all persons employed in the United States would be working under permanent NRA codes of fair competition by the end of 1933. At the present time 90 to 95% of all workers are under. either codes or Presidential re-employment agreements, he said. His further remarks were noted as follows in a Washington dispatch of Dec. 19 to the New York Herald Tribune": He said that 70% of employment was now under permanent codes, which supplant Blue Eagle agreements. If 75 more codes are approved before the end of the year, he calculates 85% of employment will be under permanent codes. 168 Codes Approved by President Roosevelt. General Johnson, in answer to questions as to how he thought the NRA had succeeded, said: "I am very much pleased with the developments of the last two weeks. I think sentiment has changed very much in favor of the NRA." Asked whether he expected much hostile criticism in Congress, he said he had no means of knowing. "My opinion is that there will be hardly any," he added. So far 168 codes have been approved by the President. General Johnson did not indicate what codes he expected to be signed in the next week or so. The rubber tire industry code is one of them, however, an agreement on a code having been reached by the industry to-day. Increases of approximately 30%, or at the rate of $25,000,000 a year, In payroll costs and more than 25% in employment in the motor bus industry under the recently adopted motor bus code, were reported to-day by the industry's code authority. $100,000 Voluntary Pay Rise Shown. Complete statistics on the adjustments of hours and wages will not be available until Jan. 1, and to-day's report was a preliminary statement of progress, filed by J. M. Meighan, Secretary of the code authority. The preliminary report showed that one system had voluntarily increased the compensation of its employees by $100,000 a year, when to comply strictly with the terms of the bus code, its increased costs would not have exceeded $35.000 a year. Dec. 23 1933 Socialists Criticize NRA as Falling Short of Original Aims—Norman Thomas and Louis Waldman Declare Code Hours Are Too High and 30-Hour Week Is Needed—Offer Five-Point Program. • Norman Thomas and Louis Waldman, co-Chairmen of the Public Affairs Committee of the Socialist Party, asserted in a statement issued on Dec. 17 that the National Recovery Administration is falling short of its original aims, and that it must eliminate its "weaknesses" immediately, or "even the temporary advantages to recovery it has assisted will disappear." Stating that the minimum hours set in most codes are too high and that labor must be granted a 30-hour week if employment is to be fully restored, they criticized the NRA attitude toward labor. Their specific recommendations as contained in the statement follow: By permitting, In many codes, the hours of labor per week to run above 40 and, in some instances, as high as 54, the first essential requirement for the re-employment of millions of people has been lost sight of. General Johnson thinks that eventually we shall have to come down to a maximum of 30 hours a week. We think that it must be done immediately, if the unemployment situation is to be materially relieved during the next few months. All codes should contain such a restriction and, if it cannot be gotten through existing machinery, It will be necessary that 'Gibe done by Act of Congress. 2. The minimum wages are being fixed at a shockingly low figure. It not only affects the purchasing power of the people, the enlargement of which is essential to recovery, but its social effects on millions of men, women and children will be disastrous. If permitted to'continue, itlwill drag down the wage structure of skilled workers and deflate the American standard of living. It defeats the very purpose of the NRA—thelonelpurpose upon which all others rest. 3. There was a solemn pledge made at the beginning that there would be a partnership between the government, labor and business. If labor has been a partner seal,it has certainly not been an equal partner. Under a system of private ownership there can be no equality of partnership between those who own and those who must seek the privilege of using the machinery owned by others; nevertheless, the failure to have larger labor representation on the code authorities will materially destroylwhatever value there may be in codes, and, particularly, the collective bargaining provision. 4. The price fixing powers conferred upon employers, under the codes, will raise—in fact, are raising—prices out of proportion to the increased purchasing power, and, in that way, defeat the purpose of the Act. 5. In the making of the codes, outside/of the top, the NRA has been packed against labor. Most of those inicharge are men who are either employers, or whose connection with employers make them more sympathetic with the views of the employing groups. Care ought to be exercised In these appointments, because, if labor loses out there, it will find itself weakened in every subsequent stage of negotiations with the employers. Sixty Cities Selected for Real Property Inventory11,000 Unemployed to Be Assigned to Work Authorized by Civil Works Administration. The Department of Commerce at Washington stated on Dec. 15 that more than 11,000 men and women would be taken from.the unemployment rolls throughout the country within the next few days in carrying out the work involved in the Real Property Inventory recently authorized by the Civil Works Administration. Plans were reported as well under way for this project, which must be completed by Feb. 15, this announcement being made by Willard L. Thorp, Director, Bureau of Foreign and Domestic Commerce, who will supervise the work. The Department also said: The first objective of the plan is to afford work for a large number of unemployed professional and technical men and women embraced in the "white collar" class throughout the country. It is expected that the program now being started will furnish jobs for 11,000 of these workers in more than 60 cities in the country. In addition to putting to work immediately a large number of persons, there are many sound reasons for the immediate initiation of such a Real Property Inventory on a National scale, in Mr. Thorp's opinion. It will determine clearly the present condition and adequacy of our housing facilities. This in turn will aid in the program of stimulation of the construetion industries. A special organization composed of technical men of wide experience has been organized in Washington to handle the project. The Bureau of the Census is.undertaking the organization of the field work, drawing men from the unemployment rolls in the cities in which the inventory is to be conducted. Mr. Thorp is quoted as follows: The maintenance of balance in employment is the most important problem facing the country to-day; it isidlfficult to accomplish this end without detailed information on the manytaspects of our economic system. Business men must be able to act on knowledge as far as possible and not speculate about the steps they are about to take. In the real estate and building fields this is glaringly illustrated in many parts of the country, where there have;been periodic phases of over-building, with no definite planning, no information as to whether or not there was a market for the buildings, whether population trendslfavored, or whether wages and salary totals were sufficient. As)al consequence, we have often proceeded to a point:far out of balance. Thislhappened in enough communities to affect the entire country,a!mostrimportanesontributinkfactor to the depression. =timing, Mr. Thorp stated that the Real Property Inventory will go a long way towards remedying past difficulties, for it will afford actual knowledge of local conditions in detail, before any group of men embark upon a campaign of building or real estate development. He added: This will be of equally great importance to the Government in endeavoring to dispel the depression. The great good to be derived from such a program will be lasting, and it is in line with the policy of the Government to plan carefully for the future. ItRwili enable private initiative, guided by real property inventories, to save itself from disastrous errors. The Government is very much interested in,pooling of vital information as a Volume 137 safeguard and guide to all businesses, for real property is the largest class of capital investment in the Nation. The schedules covering the complete range of information to be collected in this inventory have been practically completed and will be in the hands of the local enumerators within a few days. This information covers a wide range of subjects, dealing primarily with residential property. Included in the information will be data showing the condition of the property with regard to repairs and improvements, the number of vacant properties of both houses and apartments, the number of families that have doubled up because of the depression, the physical character of the structures, die equipment installed, and information of a similar character. It will also show the average current rental, which can then be compared with Census data for 1929. The range of basic facts and figures is wide and is believed essential in establishing for the guidance of the public, the building industry and the Government, the exact status of the housing situation as it exists in this country to-day. Among the cities that so far are included in the Real Property Inventory are the following REAL PROPERTY INVENTORY—CITIES TO BE COVERED. Alabama—Birmingham, Metropoll- New Hampshire—Nashua. New Jersey— r . tan Arizona—Phoenix. Trenton, Metropolitan District. Arkansas—Little Rock, Metropoli- New Mexico—Albuquerque, Santa Fe. tan District. New York— California— San Diego Metropolitan District. Syracuse, Metropolitan District, Sacramento, Metropolitan Dist. Binghamton, Metropolitan Dist. Colorado—Pueblo. North Carollna—Ashville, Connecticut— Greensboro. North Dakota—Fargo. Waterbury, Metropolitan Dist, Ohio—Cleveland,Metropolitan Dist, Delaware— Wilmington, Metropolitan Dist. Zanesville, Florida— Oklahoma—Oklahoma City, Jacksonville, Metropolitan Dist. Metropolitan District. Oregon— Georgia— Atlanta, Metropolitan District. Portland, Metropolitan District. Idaho—Boise. Pennsylvania— • Erie, Metropolitan District. Illinois—Peoria, Metropolitan Dist. Decatur. Williamsport. Indiana— Rhode Island— Indianapolis, Metropolitan Dist. Providence and environs. Iowa— South Carolina—Charleston, Des Moines, Metropolitan District. Columbia. Kansas—Topeka. South Dakota—Sioux Falls. Wichita, Metropolitan District. Tennessee— Kentucky—Paducah. Knoxville, Metropolitan District. Texas—Austin, Louisiana—Baton Rouge Dallas, Metropolitan District. Shreveport. Wichita Falls. Maine—Portland. Utah—Salt Lake City, Metropolitan Maryland—Hagerstown, District. Frederick. Vermont—Burlington, Massachusetts— Worceeter, Metropolitan District. Virginia— Richmond, Metropolitan District. Michigan—Flint, Metropolitan Dist. Washington— Lansing. Minnesota—Minneapolis, Seattle, Metropolltan District. West Virginia— St. Paul, Metropolitan District. Mississippi—Jackson. Wheeling, Metropolitan District. Missouri—Springfield, Wisconsin— St. Joseph. Racine-Kenosha, Metropolitan Montana—Butte. District. Nebraska—Lincoln. Wyoming—Casper. Nevada—Reno. Railway Labor to Ask Elimination of Bankers in Carrier Financing—Unions Will Request Congress to Create Federal Corporation to Handle New Operations—Secretary Perkins Describes Wage Improvement Plan at Meeting of Union Executives—G. M. Harrison Demands More Jobs. Railway labor plans to ask Congress to create a Federal Railroad Credit Corporation to eliminate the private banker from the field of railroad financing and enable the completion of $2,000,000,000 of refinancing within the next two years "without profit," according to an announcement on Dec. 20 by George M.Harrison; Grand President of the Brotherhood of Railway and Steamship Clerks and Vice-Chairman of the Association of Railway Labor Executives. The plan was approved by the heads of the 21 railway labor unions, representing 1,000,000 employees at the opening session on Dec.20 of a three-day meeting in Washington. The principal speakers were Secretary of Labor Perkins, Alexander F. Whitney, Chairman of the Railway Labor Executive Association, and Mr. Harrison. A special Washington dispatch to the New York "Times" described the meeting as follows: Secretary Perkins, who represented a ten-point program for improvement of the prospects of the nation's wage earners, received an ovation from the delegates and their wives when she declared there had been a loss of 81,500,000,000 in purchasing power as the result of the layoff of a million rail workers between 1920 and 1929. Maintaining that shorter hours and a minimum wage under NRA codes had created a wage earners' market of $2,000,000,000 in the last six months,she made public for the first time a sociological study of 980 families of railroads earners, conducted in co-operation with her department. This study indicated the effect of lower earnings on the living conditions and morale of rail employees. It showed that many homes had been lost, savings depleted or wiped out, insurance dropped, health impaired, dietary standards swept away, recreation curtailed and cultural activities dropped. Legislation advocated by the Secretary of Labor for those States lacking in such laws were: Permanent limitation of hours of labor. Prohibition of child labor. Fixing of standard minimum wages for women. Requirements for safe and healthy working conditions. Provision for aged workers. Some form of unemployment reserves. Adequate workmen's compensation laws. Free public employment exchanges. 4473 Financial Chronicle Improvement and stronger administration of labor laws and steps to make permanent improved labor conditions. The keynote of Mr. Whitney's address was the statement that unless the present tendency of machines to displace workers is counteracted by shorter hours and higher wage rates,"the day will soon come when the great majority of the American people will be able to exist only by the grace of charity and the doles of the Government." Mr. Whitney vigorously defended the New Deal and President Roosevelt, praised the NRA for its aims, criticized 0. M. W. Sprague, former adviser to the Treasury, and summarized the increase in railroad efficiency in recent years to prove his contention that railroad labor had suffered for the benefit of the bondholders, stockholders and management. He also criticized newspapers for "competing with the railroads as the outstanding chiselers," the reference being to the use of child labor in newspaper delivery. Although the addresses of Mr. Whitney and Mr. Harrison dealt with the proposed legislative program, the outstanding feature of the meeting was the announcement of the plan for a Federal Railroad Credit Corporation. formulated by Mr. Harrison, who is regarded as one of the outstanding statistical authorities among railroad labor leaders. The plan is now in the hands of the Federal Railroad Co-ordinator, Joseph B. Eastman, for study, and Henry Bruere of New York, adviser to the President and various bondholders' committees on rail problems, is also scrutinizing the projects. Would Mean Reorganization. In the opinion of Mr. Harrison, the plan calls for a complete reorganization in the interest of bondholders,stockholders, employees and the public. of what he terms the unsound financial structure of the railroads. Railroad financing, if Congress should enact the measure, would be a public service, not an enterprise for private profit, although in the industry Itself that would not be eliminated. A return on the legitimate investment would accrue to the holders of rail securities. Only in this way, according to Mr. Harrison. would the industry save itself from bankruptcy. The roads were now more than 82,000.000,000 in default on their bonds, while their debts to the RFC totaled another $2,000,000,000 or more. The railroad problem is a financial problem, he contended. No industry that is mortgaged for 60% of its capitalization can survive an economic depression that reduces traffic 50%, he insisted. It is imperative, he further said, that the capital obligations of the carriers be scaled down, particularly charges on funded debt. The interests of insurance companies and banks in rail bonds would berconserved by a reduction of the interest rates, accompanied by increasedjsecurity. "Institutional holdings of railroad securities would be benefited by a scaling down of interest and even the face value of securities would be enhanced if security values were solidified at levels from which they might be expected to rise but would not be expected to fall. "With this done we would suggest as a further step in the solution of the financial problem the creation of a Federal Railroad Credit Corporation, operated without profit, through which the railroads should be financed. In other words, we suggest that the Government take over the job of financing the railroads. Bond issues could be refinanced through this Corporation at a substantial reduction in interest rates. "This Corporation could raise the funds necessary for the financing of the railroads through the sale of its securities to the public. Such a governmental agency could finance the railroads at a saving of perhaps one-half of the present interest rates. Sees Aid to Bondholders. "Such a method of financing the railroad industry ought to result in an immediate improvement in the position of the bondholders. The present low level of bond prices is in the main caused by the uncertainty of the securities and the inability of the industry, as a whole, to meet its obligations. "If the unsound railroads are reorganized and maturing obligations refinanced through a Federal Railroad Credit Corporation, that uncertainty would no longer exist and a favorable reaction would immediately occur In the bond market. Whatever losses might result from a scaling down of the capital structure would be more than offset by the improvement in the prices of railroad securities. "If the ability of the industry to meet its financial obligations is improved. then there should be an immediate reaction in railroad stocks. The public would benefit through a more dependable and adequate transportation service. "What we propose is merely that the Government provide credit for the operation of the railroads, take te profit out offurnishing credit and relieve the industry of that evil and unnecessary load." Mr. Harrison attacked the Prince plan for consolidation of railroad systems, saying its sponsors admitted its adoption would eliminate approximately 335.000 employees. He continued: "From every standpoint the Prince plan is a dangerous and unwise Proposal. The removal or abandonment of railway facilities on such a scale as is proposed by this plan would have a most damaging effect upon scores of towns and cities built up largely around existing railway facilities and service. Its effect upon employment now and later would cause economic repercussions that would destroy whatever economies might result in railway operations. "Labor is bitterly opposed to any plan that is designed to further increase unemployment. We will strongly oppose the Prince plan or any other plan of consolidation unless adequate safeguards are provided for the rights and interest of the public and the:employes," Discussing the problem of carrier competition, Mr. Harrison said: "The situation confronting the railroads throughout this depression has been made more acute because of the new competitive conditions. The truck, bus, pipe lines and waterways have helped to complicate the railroad problem. The motor carriers and the waterways compete unfairly for railroad traffic because they are largely subsidizedlat public expense. They are unregulated and are not required to operate under the regulations that have been applied to the railroads and considered as necessary in the public interest." Taking up employment on the railroads, he continued: "By the use ofincreased power,the employment oflabor saving rnarhinery and refinements in the technique of management,the railroads had reduced their work forces by 300,000 at the very peak of business, to which has:been added another 500.000 as the toll of the depression. Even with a revival in business it is doubtful if more than half of the 800,000 unemployed rail workers could be reabsorbed by the Industry, "The labor Provisions of the Emergency Act lay down the principle that unemployment, property losses of employes and moving exPenses:are proper costs to be taken into account by the railroads in the development of their plans. They lay down the principle that a portion of the savings resulting from these changes must go to insure employees continuity of employment and indemnify workers against losses. "The experience of the last four years has certainly taught us that this drive for efficiency in production at the cost of employmentland wages Financial Chronicle 4474 Dec. 23 1933 cannot continue without impairing the very foundation of society. The labor provisions of the Emergency Act are in complete harmony with the New Deal, which, if it means anything, means that the right to work must not be destroyed for the sake of increased profits. We will urge that these principles for the protection of labor's rights be preserved in any permanent measure Congress may adopt to take the place of the Emergency Act." The following is the list of banks having approved plans for reorganization: City. Name of Bank. Whitney's Tribute to Roosevelt. In his address Mr. Whitney paid a tribute to President Roosevelt, who, he said, "has accomplished more than any leader in this or any other country has ever accomplished in so short a time." Nevertheless, "grave and serious problems still lie ahead." He added: "I want to emphasize that the greatest danger is the possibility of government action swinging to the 'right' rather than straight ahead or even to the 'left.' The seeds of this and even worse economic depressions are being sown every day through the ever-increasing efficiency attained by new machines and new methods." With figures taken from official records, Mr. Whitney described the extent to which efficiency had increased since the eight-hour day became effective for train, engine and yard service employes in 1917. In 1916 the employes of Class I railroads numbered 1,647,097 and gross revenues were 83,596,865.766. Twelve years later, in the peak year of 1929, the employees of Class I railroads numbered 1,662,463,an increase of 15.366 over 1916, yet the gross revenues had increased to $6,279,520,544, or almost double what they were in 1916. "In other words," Mr. Whitney went on, "substantially the same number of employees were producing practically twice the amount of revenues." The replacement of men with machines was especially intense between 1920 and 1929, with the result that in that period 370,000 workers were removed from payrolls. In spite of the smaller number of employees,however, revenues in 1929 were $100,000,000 larger than in 1920. There was not a single group of railroad workers that had not felt the disastrous effect of mechanization, Mr. Whitney declared, and he cited numerous examples. Maintenance of way workers and workers in all other classifications had been displaced by scores of devices, while heavier locomotives with greater tractive power had increased the length of runs and the size of trains and thus had separated thousands of train crews from their Jobs. In short, the railroads now received in general about three-fourths more revenue for each dollar paid in wages, notwithstanding the falling off in business. "The latent or reserve capacity of railroad workers," Mr. Whitney continued,"may best be appreciated when we consider the statement of railroad managers, made Just prior to this Summer's increase in business to the effect that a 20% increase in business could be handled without any increase in force. "It has been further stated by competent authority that a restoration of 50% of decline in business since 1929 would enable the railroads to show net earnings equal to those of 1929." Battle Creek_ __ Bronson Eaton Rapids__ Flint Hillsdale Ionia Lansing Ludington Marshall Utica Caspian Crystal Falls_ .._ Crystal Falls_ _ _ Gladstone Iron River Ishpeming Norway Ontonagon Old Merchants National Bank__ Peoples National Bank First National Bank First National Bank First National Bank National Bank of Ionia Capital National Bank First National Bank & Trust Co_ First National Bank First National Bank Caspian National Bank Crystal Falls National Bank_ _ _ _ Iron County National Bank First National Bank First National Bank Miners National Bank First National Bank First National Bank Reorganization Plans of All But 12 National Banks in Michigan Approved-54 Banks Had Failed to Receive Licenses Following March Banking Holiday. There are only 12 National banks in Michigan which have failed to have their reorganization plans approved. These banks have deposits of $4,067,000. This was revealed in a. letter sent by J. F. T. O'Connor, Comptroller of the Currency, to the "Michigan Financial Record" as a reply to a request for a list of the National banks in the State remaining closed after the banking holiday of March and which had since re-opened. The letter, dated Dec. 20, follows: COMPTROLLER OF THE CURRENCY Washington. Dec. 20 1933. Michigan Financial Record, 914 Transportation Building, Detroit, Mich. Gentlemen: Receipt is acknowledged of your telegram dated Dec. 12 1933 requesting a list of National banks in the State of Michigan remaining closed after the banking holiday which ended March 15 1933, that have since re-opened and the percentage of deposits released in each case. There were 54 National banks in the State of Michigan that failed to receive licenses following the banking holiday, involving $567,409,000.00 in deposits. Since that time 24 of this number have been rehabilitated, reorganized under new charter, or the acceptable assets sold to another bank or banks involving $526,672,000.00. an additional 18 banks have approved plans of reorganization in various stages of consummation involving 836,670,000.00 in deposits and only 12 banks have failed to have their plans approved up to this time, involving $4,067,000.00 in deposits. For your information the following banks have been reorganized along the lines stated above: City. Evart Detroit Detroit Lawton Birmingham ___ Pontiac Grand Rapids__ Jackson Niles Richmond Ypsilanti Adrian Benton Harbor_ Monroe Rochester Hermansville_ Wakefield Hancock Iron Mountain_ Lake Linden___ Saint Ignace_ _ Hubbell Hastings Wyandotte Name of Bank. % Se- % U7IFrozen Deposits cured secured ReReInvolved. leased. leased. -., $227.000.00 100% First National Bank 373,360,000.00 100% First National Bank 108,103,000.00 100% Guardian National Bank 73,000.00 100% First National Bank 2,301,000.00 100% First National Bank 6,154,000.00 100% First National Bank 11,080,000.00 100% Grand Rapids National Bank 7.450,000.00 100% Union & Peoples National Bank_ 1,221,000.00 100% City National Bank 766,000.00 100% First National Bank 2,320,000.00 100% First National Bank 647,000.00 100% National Bank of Commerce - -2,461,000.00 100% Far.& Mer. Nat. Bank & Tr. Co. 2,116,000.00 100% First National Bank 1,459,000.00 100% First National Bank 468,000.00 100% First National Bank First National Bank 537,000.00 100% Superior National Bank 952,000.00 100% First National Bank 1,856,000.00 100% First National Bank 556,000.00 100% First National Bank 601,000.00 100% First National Bank 583,000.00 100% Hastings National Bank 739,000.00 100% First National Bank 642,0J0.00 100% 100% x40% z40% 100% 25% 40% 50% 35% p50% V 60% 30% '.' 40% V 50% I 50% 25% 100% 60% 75% 60% 60% 55% 70% 60% 30% Total $526.672,000.00 z Additional 10% dividend since paid by receiver. z Additional 20% dividend since paid by receiver. Frozen Deposits Involved. % Becured Released. % Unsecured lobe Released. 57,891,000.00 206,000.00 406,000.00 6,244,000.00 723,000.00 1,079,000.00 11,906,000.00 844,000.00 776,000.00 646,000.00 288,000.00 451,000.00 736,000.00 339,000.00 826,000.00 2,024,000.00 1,013,000.00 272,000.00 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 65% 50% 40% 50% 15% 45% 40% 35% 50% 50% 50% 40% 40% 70% 50% 60% 64% 50% 636,670,000.00 Total The following is the list of banks whose plans of reorganization have been disapproved. There is, however, a possibil ty that with improved conditions and necessary corrections that these banks may yet reorganize: City Cold Water_ _ Howell Manistee Paw Paw Mantistique___ Hart Hartford Almont Avoca Brighton Millington Romeo Name of Bank. Cold Water National Bank First National Bank First National Bank First National Bank First National Bank First National Bank Olney National Bank First National Bank First National Bank First National Bank Millington National Bank Citizens National Bank Frozen Deposits Involved. $539,000.00 392,000.00 489,000.00 510,000.00 303,000.00 337,000.00 368,000.00 165,000.00 227,000.00 138,000.00 81,000.00 518,000.00 % Se- % Uncured secured ReReleased. leased. None None None None None None None None None None None None None None None None None None None None None None None None Total 54,067,000.00 . Considerable adverse comment has been directed at this office for its lack of co-operation and assistance rendered in the closed bank situation in the State of Michigan. As a matter of record, the Reorganization Division, an emergency unit, was organized overnight for the purpose of developing plans of reorganization for not only 1.446 National banks placed in conservatorship following March 16 1933, but also for developing plans of reorganization for banks in the hands of receivers desiring to reorganize. At the time this Division was under its most terrific strain, two special examiners were detailed to the State of Michigan with instructions to personally contact all National banks in the hands of conservators, and to urge them to present and assist them in developing feasible plans of reorganization In order to release and arrange for the future release of a percentage of deposits in suspended banks, in most instances it has been necessary to negotiate loans in large amounts from the Reconstruction Finance Corporation on assets unacceptable to a new bank, and likewise necessary for the Corporation to assist in the recapitalization of old banks and the capitalization of new banks by purchasing preferred stock. Since Jan. 1 1933. receivers in insolvent National banks in the State of Michigan have paid a total of $71,119,929.09 in regular dividends. These figures do not include supplemental dividend payments, the amounts of which were proportionately large, inasmuch as it would be impossible to furnish that data without an exhaustive and protracted compilation. To illustrate, the depositors in the two large closed Detroit banks alone have received, through the assistance of the RFC, over $232,000,000.00 in the satisfaction of their deposit claims. In the case of the Guardian National Bank, depositors have already been paid 60% of their unsecured claims, while depositors in the First National Bank, Detroit, have received 50% of unsecured claims. Depositors in other Michigan banks have likewise received large sums through loans made by the RFC. In view of the foregoing, it is felt the State of Michigan has been accorded the fullest possible co-operation of this office throughout the banking crisis, as well as a generous measure of Government financing of frozen credits by the RFC. Very truly yours, J. F. T. O'CONNOR. Comptroller of the Currency. Reopening of Closed Banks for Business and Lifting of Restrictions. Since the publication in our issue of Dec. 16 (page 4308), with regard to the banking situation in the various States, the following further action is reported: ILLINOIS. According to a dispatch by the Associated Press from Hoopeston, Ill., on Dec. 12, an initial 5% payment totaling $30,000 was made on that date to the 3,500 depositors of the defunct First National Bank of Hoopeston, which failed to reopen after the bank moratorium last March. G. H. Couchman, the receiver, announced the payment, it was said. IOWA. Two banks in Sigourney, Iowa, the Keokuk County State Bank and the First Trust & Union Savings Bank, have been released from restrictions and will continue operations under a depositors' agreement plan, according to the State Superintendent of Banking for Iowa, D. W. Bates. A Des Moines dispatch on Dec. 18 to the "Wall Street Journal," reporting this, went on to say: The Iowa House of Representatives has passed a bill extending the provisions of the emergency bank law for another year. This law provides that the State Superintendent of Banking may take charge of a bank and direct its operations if it is financially involved, rather than throw it into receivership. Financial Chronicle Volume 137 KENTUCKY. A plan looking towards the organization of a new bank in Paris, Ky., to take over the acceptable assets and assume the liabilities of the First National Bank of that place, which has been in the hands of a conservator since March 18 last, has been ratified by the stockholders holding more than the required two-thirds majority of stock in the old institution, according to an official announcement on Dec. 12. Advices from Paris or Dec. 12 to the Louisville "Courier-Journal," from which the above information is obtained continuing said in part: it was stated that the tentative set-up for the new bank showed assets of approximately $559,000, of which $273,000 would be in cash and about $25,000 in United States Government securities. The plan, it was stated, also calls for the issuance of $50,000 of preferred stock to be subscribed by the RFC, $50,000 of common stock to be subscribed locally at a price to establish a surplus of $10,000 and the deposits of the old institution to be assumed by the new organization. It is expected that with the required amount of stock sold and the plan put into effect, the new bank, to be known as National Bank & Trust Co., will be in operation early in 1934. MARYLAND. The Union Trust Co. of Baltimore, Md., which had been operating under restrictions since the banking holiday last February, with approximately $6,000,000 in deposits tied up,reopened on Dec. 18 on an unrestricted basis as a member of the Federal Reserve System. In reporting the above, the Baltimore "Sun" of Dec. 18, continuing said: Certificates of deposit representing 40% of deposits, also certificates of beneficial interest for a like amount, were mailed depositors Saturday night. The remaining 20% of their funds has been placed to their credit and will be available at any time, Benjamin H. Brewster, Jr., acting President, told depositors. Personal appearance will not be necessary to secure these balances, Mr. Brewster said. He also stressed the fact that Federal Reserve and State bank examiners had found the company thoroughly sound. The Farmers' State bank of Emmitsburg, Md., which had been operating on a restricted basis since the bank holiday, has reopened on an unrestricted basis under a reorganization plan approved by the State Bank Commissioner of Maryland, according to Baltimore advices on Dec. 21 to the "Wall Street Journal,' which added: Under the plan 80% of deposits would be made available for depositors upon reopening. Certificates of beneficial interest would be issued for the remaining 20% of deposits. MICHIGAN. The Charlevoix County Bank of Boyne City, Mich., was to begin paying a dividend of 49% to its depositors, according to advices from that place on the date named printed in the Detroit "Free Press," which went on to say: The institution, which closed Oct. 30 1932, to liquidate. 15 days later paid 50% The 99% payoff has been accomplished without borrowing. The RFC, largest creditor of the Union Guardian Trust Co., Detroit, Mich., will permit the reorganization of the trust company along lines presented on Dec. 12 by George H. Kirchner, State conservator, and George B. Schaeffer, his attorney. Under the plan, to which the RFC will not object, the company will be reorganized and continue to do a fiduciary business. The assets of its banking department will be liquidated by a board of trustees. Washington advices on Dec. 12, appearing in the Detroit "Free Press," authority for the above, continuing said: The plan called for: 1. The appointment of a board of five trustees to take over the liquidation of the $43,000,000 in assets of the firm. 2. The incorporation of a liquidating company, with the RFC naming all directors, for the purpose of liquidating assets of the company which are now pledged to the RFC. The directors of the corporation, to be incorporated under the laws of Delaware, will have voting rights on the board of trustees. 3. The fiduciary division will continue as the Union Guardian Trust Co., handling more than 5,000 trusts involving $600,000,000. The five trustees who will handle the $43,000,000 in assets will be named by Rudolph E. Reichert, State Banking Commissioner. These trustees will issue $1,000 in Class A stock of no par value, and $31,000,000 in Class B stock of no par value. The Class B. stock will be turned over to the corporation which will be controlled by the RFC, and this stock will represent the collateral the Government will hold for the $11,000,000 debt now due from the Union Guardian Trust Co. At the present time the RFC holds $31,000,000 in assets of the company, represented in mortgages, bonds, etc. No formal approval of the plan was voted by the board of the RFC, but Kirchner was assured that no objection would be raised by the principal creditors. Under the laws of Michigan a plan can be put through when no objections are raised, and other creditors have already agreed to waive their rights to protest. Depositors in the banking department of the Union Guardian Trust Co. will receive from the trustees certificates of indebtedness. The total deposits amount to $24,000,000 which plus the $11,000,000 debt to the RFC for a loan made in 1932 brings the total liability to $35,000,000. Against this liability is $43,000,000 in assets of a varied nature. The RFC waived its right to-day to throw on the market $31,000,000 In assets, in order to meet the $11,000,000 debt. Had the Government decided to market these assets, rather than accept the plan of Kirchner, the real estate market in Detroit would have been completely demoralized, the latter said. , I He expressed the opinion that under the plan which the RFC accepts, the depositors will derive a great benefit by a slowing up of liquidation. 4475 Kirchner said that the decision of the RFC not to oppose the plan had been reached after months of deliberation, and after Senator Couzens had interceded on several occasions. The RFC will, through the corporation and voting power on the board of trustees, continue to exercise control over the assets pledged. But the freeing of these assets, thus making possible slow liquidation, will result in tremendous benefit to depositors in the defunct company. Under the conservatorship the fiduciary branch of the firm has made money, Kirchner stated, and entirely divorced from the banking business can function profitably. The Board of Directors of the new National Bank of Flint, Mich., held their first meeting on Dec. 13 and appointed Robert Longway, former Vice President of the Buick Motor Co., President; A. B. C. Hardy, Vice Presilent and Harold B. Ward, former Highland Park banker, Cashier, according to Flint advices on Dec. 13, printed in the Detroit "Free Press," which continuing, said in part: .. Opening the new bank, which will replace the Union Industrial Trust & Savings Bank and the First National Bank & Trust Co., will release $7,000,000 impounded deposits to creditors of the two banks that were closed last February and which have paid depositors only 5%, with the exception of the school savings fund and accounts under $10, which the Union Industrial paid in full with Court approval. Depositors of the Union Industrial will get 35% of their money and the First National depositors will get 50% of their savings on the first payoff. the bank has indicated That the reorganized City Bank of Kent, Mich., had issued a license to resume full operations, was announced on Dec. 15 by S. C. White, Chairman of the stockholders' reorganization committee. The institution had been operating on a restricted basis since Feb. 28 last. A Kent dispatch to the Cleveland "Plain Dealer" on Dec. 15, from which this is learnt, continuing said: Stockholders will meet at the bank to-morrow afternoon to select a new Board of Directors and set a date for resuming unrestricted business. Plans call for release of $70,000 to depositors. This will include all deposits of $25 or less, all Christmas savings accounts, thrift accounts and 10% of the 60% to be granted the larger depositors. The new National Bank of Wyandotte, Wyandotte, Mich., opened for business on Dec. 15. In noting the opening the Detroit "Free Press' of Dec. 16 had the following to say: The new National Bank of Wyandotte, Friday (Dec. 15) paid out $5,000 of $125,000, which was available, according to an announcement made by Hays Metcalf, Cashier, at the close of business for the day. The $125,000 is money contained in accounts of depositors of the closed People's Wayne County Bank and the First National Bank of Wyandotte, which are making payoffs of 40% and 30%. respectively. Approximately 96% of the A and B depositors in the old banks transferred their money to the new institution. Total deposits of approximately $250,000 were received during the first day's business. Metcalf said. . . . The payoff will be completed before Christmas, and will total about $600,000, according to conservators for the old banks. Further payoffs will take place through the new bank, as assets of the old institutions are liquidated. Officers of the new bank besides Mr. Metcalf, the Cashier, are as follows, according to the "Free Press" of Dec. 15: Charles A. Brethen, President; C. Lee Edwards, Chairman of the Board of Directors, and Dr. C. W. McColl, Vice President. MISSISSIPPI. The following regarding the affairs of the closed Merchants Bank & Trust Co. of Jackson, Miss., was contained in a dispatch from that city to the "Wall Street Journal" under date of Dec. 19: Chancellor Striker has approved an application of the Merchants Bank & Trust Co. to the RFC for a $3.030,000 loan to pay preferred claims and an estimated 75% of unsecured claims. Superintendent of Banks stated that the completion of details, including approval of collateral, will release funds to depositors. The bank closed last April. MISSOURI. The new Manufacturers Bank & Trust Co. of St. Louis, St. Louis, Mo.,opened for business on Dec.20 in the banking quarters formerly occupied by the Lafayette-South Side Bank & Trust Co. at Broadway and Lafayette Avenue, making available approximately ,500,000 to the depositors of the latter. The new bank, which is a member of the Federal Reserve System, has purchased the liquid assets and banking quarters of the Lafayette-South Side Bank & Trust Co. and assumed unrestricted liability for 50% of the deposits of the institution. The personnel of the new institution includes the following: August A. Busch (President of Anheuser-Busch, Inc.), Chairman of the Board of Directors; Hord Hardin (Vice-President of the Mississippi Valley Trust Co. of St. Louis) Acting President; William J. Jones and Earl M. Johnstone, Vice-Presidents; Hugh B. Rose, Secretary; Oscar L. Kupferer, Treasurer; E. A. Bircher, Assistant Secretary and Assistant Treasurer; A. J. Lierman, Assistant Treasurer, and Frank K. Harris, Assistant VicePresident. In regard to Mr. Hardin, Acting President of the bank, the St. Louis "Globe-Democrat" of Dec. 20 (from which the above information is obtained), had the following to say: Financial Chronicle 4476 In announcing Hardin's selection to head the bank, the following statement was issued: "We are very fortunate in having Mr. Hardin serve as acting president of the bank. The arrangement was effected through the courtesy of the directors of the Mississippi Valley in 'loaning' him to us. Mr. Hardin is especially well informed concerning our new bank's assets, having passed judgment on them in the formation of the bank. "His selection gives us an able chief executive for the opening of the bank while permitting time and opportunity for our Board of Directors to select the right man for the permanent presidency. "We are particularly concerned, in behalf of the depositors, that the new bank should open before Christmas and yet we are unwilling that we should be hurried into the choice of a permanent president. Our ability to obtain Mr. Hardin as acting President is a sound solution of the problem." The same paper also said in part: The bank, which has been closed for nearly ten months, will release about $8.500,000 to depositors at once. It was reorganized so depositors will have access to 50% of their balances with the rtst taken in preferred stock of the new institution and participation in the liquidation of the old bank assets. The reorganization was assured when the Busch interests subscribed or made loans in order that associates might subscribe to $636,000 of the total $716,000 common stock of the new bank. Joseph L. Rehme, who served as President of the Lafayette-South Side Bank & Trust Co., was not mentioned in the reorganization announcement. Rehme told a reporter he will remain as President of the old bank while it is being liquidated, but will not be among the officials of the new bank. The Lafayette-South Side was the fifth largest bank in St. Louis. NEW JERSEY. That depositors of the closed Mount Ephraim National Bank, Mount Ephraim, N. J., were to receive a 45% dividend before Christmas, was announced by Joseph Varbalow, the receiver of the institution on Dec. 15, according to a Camden dispatch by the United Press on that date, which added: The amount involved, affecting more than 1.000 depositors, is approximately $65,000. A $50,000 Reconstruction Finance Corporation loan was negotiated to make it possible. NEW YORK STATE. Two former officials of the Sunrise National Bank of Baldwin, L. I. (which has been closed since the bankin holiday last March and is now in the hands of a receiver) on Dec. 11 pleaded "guilty" to misapplying the funds of the institution and to making false entries in a report to the Comptroller of the Currency in the Brooklyn Federal Court. They were William A. Culver,former Vice-President of the bank, who was alleged to have misapplied about $21,000 and Oscar Jacobs, also a former Vice-President, and a director, who was charged with the misapplication of approximately $70,000. The Brooklyn "Eagle" of Dec. 11, from which the foregoing is learnt, continuing said: . . . The former bankers previously had pleaded not guilty to the charges, but changed their pleas as their case was about to go to trial to-day (Dec. 11). Culver, who formerly lived in Baldwin, was arrested on Oct. 4 last in . Peoria, Ill., where he was serving as conservator of a bank. . Subsequently (Dec. 15) both were sentenced by Judge Mortimer W. Byers in the United States District Court, Brooklyn, to serve terms in the Federal Penitentiary— Jacobs three and a half years and Culver two years, accordng to the New York "Herald Tribune" of Dec. 18. Concerning the affairs of the Kings Park National Bank of Kings Park, L. I., a dispatch from that place to the New York "Herald Tribune" on Dec. 15 contained the following: The Kings Park, L. I., National Bank, closed since March 4. received to-day a 15-day extension to Dec. 30, when they must either have raised an additional $10,000 to open a new bank with capital of $50,000 and surplus of $10,000 or go into receivership to be liquidated. Approximately $387,000 is tied up in the closed bank. Sixty per cent of this will be available for withdrawal by depositors the day the new bank opens. the remaining 40% to be waived in benefit of depositors. Dec. 23 1933 13,000 have not yet forwarded to the new bank the proofs of claim which, would entitle them to draw at once against their deposits. It is believed that the opening of the bank may relieve the city's financial situation, as a good many taxpayers had funds tied up in the old bank. For some months the city has been behind in its payrolls. One bank in the city, the Westchester Trust Co.. remains on a restricted basis, imposed. May 13. The probable reopening shortly of the Westchester Trust Co. of Yonkers, N. Y., would appear from the following Yonkers dispatch on Dec. 21, printed in the New York "Herald-Tribune": A persistent report was abroad here to-day (Dec. 21), that the restricted Westchester Trust Co. of Yonkers, had obtained a large loan from the RFO in Washington and hopad to resume normal banking business at an early date. The report could not be confirmed, however. George Edie,an official of the trust company,referred all inquiries to the State Banking Department. At the office of the Banking Department in New York City, it was explained that the RFC had not officially notified the State Banking Department that any loan had been granted. OHIO. Concerning the affairs of the First-Central Trust Co. or Akron, Ohio, Associated Press advices from that place on Dec. 12 contained the following: Identity of the seven directors who will guide the destinies of the reorganized First-Central Trust Co. was revealed to-day by the bank's reopening committee as it announced approval of the Directorate by the State Banking Superintendent and the Federal Reserve Bank of Cleveland. William S. A. Smith, retired, who was senior Republican member of the first Federal Farm Loan Board, is one of the directors. The others, all local business and industrial leaders, are E. Weber Robinson, Charles C. Dilley, Hugh A. Galt, H. B. Hobart, Fred J. Palmer and Edward J. Small. Stockholders of the Citizens' Banking & Savings Co. of Conneaut, Ohio, on Dec. 12 elected nine directors who will serve when the institution is licensed to reopen, according to advices from that place on Dec. 12, appearing in the Cleveland "Plain Dealer," which furthermore said: It was announced that every requirement of the State had been met although there are a few of the additional 10% waivers still to come in. Date of reopening cannot be determined but officials said they hope it will be before Christmas. H. J. Ledogar, conservator, said that everythingthe State had requested had been complied with. Under the reorganization plan, capital structure is reduced from $125,000 to $100,000. Stockholders exchangelone share of the old $100 par value stock for two shares of new $25 par shares. To increase capitalfrom $62.500 to $100,000. When bank resumes, 55% of deposits will be unrestricted. Forty-five per cent will be set aside, to be paid for out of slow assets under trusteeship. James V. Ford, an attorney, was appointed receiver on Dec. 16 for the Union National Bank of Fostoria, Ohio, which had been operated on a restricted basis since last March when a conservator was appointed, according to a dispatch from Fostoria on the date named, which went on to say: Request by stockholders for a voluntary liquidation by a liquidating committee was rejected by the Comptroller of Currency. OKLAHOMA. The First National Bank of Ponca City, Okla., will reopen shortly as a new institution, according to Ponca City advices on Dec. 11 to the "Oklahoman." The bank, with $1,300,000. deposits, did not open following the moratorium last March, chiefly because surplus was in a Kansas City bank that did not reopen. The dispatch, continuing, said: Details of the reorganization have been completed with $50,000 common stock and $10.000 surplus subscribed and paid in. Final approval of the Reconstruction Finance Corporation to subscribe $50,000 in preferred stock was announced Dec. 11. Under the new arrangement, depositors will receive 65% of their old deposits, of which 5% has already been paid. The remaining 35% is left in the new bank until "frozen" assets of the old institutionrare liquidated sufficiently to reimburse depositors in full—there are 4,0001 depositors in the old bank. L. D. Edgington of Hominy, will be President of the new bank here, with F. M. Overstreet. formerly of Cherokee, as Cashier. PENNSYLVANIA. Plans for the establishment of a new national bank in The First National Bank in Yonkers, Yonkers, N. Y., Philadelphia, Pa., to be known as the South Philadelphia which took over the deposits and assets of the First National National Bank, have been approved by the Comptroller of Bank & Trust Co., which had been operated on a restricted the Currency. The new bank will take over certain accepbasis since March last, opened at 9:00 p. m. Saturday; Dec. table assets of the Southwestern National Bank and the 16, and in the first 15 minutes of business took in deposits Sixth National Bank, both of which have been operating aggregating $270,000. The new bank was to have been under conservators since the banking holiday. It is hoped opened at 9 o'clock this morning. It was discovered in that the new bank will be ready for business early in January, Washington at the last minute, however, that there was and it will occupy the offices of the present banks at Broad an apparent under-subscription of 49 shares in its 30,000- and South Streets and Second and Pine Streets, which it share issue of stock. Although there actually were sub- will rent. The Philadelphia "Financial Journal," authority scriptions for 600 shares which could not be filled because for the foregoing, continued: of the limit of 30,000, it took all day to straighten out The transfer of assets and other details will be effected overnight so that the apparent discrepancy. Yonkers advices to the New there will be no inconvenience to depositors and no interference with checks, merely an automatic transfer. York "Herald Tribune," from which the foregoing is learnt, butDetails of the new bank will be submitted to depositors and stockholders continuing said: of the two banks in a few days, according to Eugene Walter, conservator for A line began to form in front of the bank building at 20 South Broadway about 8 o'clock this evening and by 9 o'clock, when the doors were opened, there were about 300 in line, many of them women. In the afternoon when three armored trucks arrived bearing currency from the Federal Reserve Bank of New York.there was another crowd in front of the building. The police had posted guards at the bank to prevent confusion when the doors were opened, but they had little to do as the rush for the windows was an orderly one. Of the 28,000 depositors of the superseded bank the Southwestern National. The new bank will have a capital structure og $600,000, Mr. Walter said, of which $300,000 will be in preferred stock representing the Government's investment in the enterprise. The balance of the capital is represented by 10,000 shares of common stock, with a parvalue of $20, to be sold at $30 a share to provide a surplus of $100,000. We learn from the Philadelphia "Ledger" of Dec. 19 that Eugene Walter, conservator of the Southwestern National Volume 137 Financial Chronicle Bank of Philadelphia, announced the previous day that the Comptroller of the Currency had approved plans for the formation of a new bank, to be known as the "South Philadelphia National Bank," by a merger of the Southwestern National and the Sixth National Bank of Philadelphia, also under a conservator. We quote further from the paper mentioned: Details of the reorganization plan will be submitted to the depositors and stockholders of the two old institutions within a few days. "The new bank will have a capital structure of $600,000," he said "of which $300,000 in preferred stock will represent the Government's investment in the enterprise. The balance of the capital is represented by 10,000 shares of common stock with a par value of $20, to be sold at $30 a share to provide a surplus of $100,000. Offices will be at Broad and South Streets and Second and Pine Streets." WISCONSIN. The 'Union National Bank of Ashland, Wis., opened for business on Dec. 14, giving that city and its environs banking service for the first time since the banking holiday in March. In noting the opening, Associated Press advicesfrom Ashland said: More than $500.000 was to be paid out to depositors in the form of dividends covering a portion of the deposits in the former Northern National and Ashland National Banks. The bank opened its doors to-day (Dec. 14) with deposits of $609,889.58 and listed among its assets a half million in cash, bonds of $92,454 value on the present market and $3,300 in Federal Reserve System stock. The statement of the new bank showed how 100 cents on the dollar could be paid without eliminating the reserve. That the new National Exchange Bank of Fond du Lac, Wis., was to open on Dec.20 as successor to the Commercial National Bank is indicated in the following dispatch from that place on Dec. 15 last to the Milwaukee "Sentinel": Issuance of a charter and crediting of $250,000 in preferred stock to be held by the Reconstruction Finance Corporation at the Federal Reserve Bank in Chicago permitted announcement to-day (Dec. 15) that the new National Exchange Bank here will open Dec. 20 in quarters formerly occupied by the Commercial National Bank. The opening will release approximately $1,000,000 to depositors of the Commercial National. ITEMS ABOUT BANKS, TRUST COMPANIES, &c. New York Cotton Exchange membership standing in the name of the late Edward M. Weld was sold, Dec. 18, at auction to W.L. Farnell,for another,for $16,000, a decrease of $2,000 from the last previous sale. The sale of two memberships on the New York Coffee and Sugar Exchange at 35,000—down $1,000—from the last sale on Oct. 17, was announced Dec. 21. The membership of Mr. E. A. Crawford was sold to Mr. E. W. Dyer, and the membership of Mr. Roger De Vore was sold to Mr. Alexander L. Owen. A membership on the Chicago Board of Trade was sold, Dec. 18, for $6,750, a decline of $500 from the last previous transfer. Practically all the commodity markets in the United States will be closed to-day (Dec. 23) thus affording a three-day holiday over Christmas, but the New York Stock Exchange and almost all other markets for securities in the country, including the New York Curb Exchange, Over-the Counter Market, and the Securities Market on the New York Produce Exchange, will be open. Included in the exchange that will remain closed from to-day until Dec.26 are the New York Cotton, New York Mining, New York Cocoa, New York Coffee & Sugar, all markets on Commodity Exchange, Inc., Wool Top Exchange, cottonseed oil futures division of the New York Produce Exchange, New Orleans Cotton and Chicago Board of Trade. The Winnipeg Grain Exchange will be open to-day but will be closed Dec. 25 and 26. At the meeting of the Board of Trustees of The New York Trust Company held Dec. 20, Adrian M.Massie was elected a Vice-President of the company to take effect Jan. 1. Mr. Massie is at present Assistant Vice-President of the City Bank Farmers Trust Company. The Comptroller of the Currency on Dec. 15 chartered the National Spraker Bank in Canajoharie, Canajoharie, N. Y., which replaces the National Spraker Bank of that place. The new institution is capitalized at $125,000, consisting a $75,000 preferred and $50,000 common stock. John R. Beach is President and H. J. Marshall, Cashier, of the new organization. Ellwood M. Rabenold, Chairman of the Clinton Trust Co., of New York City, announced Dec. 20 that Lee S. Buckingham had been elected President of the institution. The election took place at a meeting of the Board of Directors held Dec. 19. Mr. Buckingham formerly was Vice-President of 4477 the bank and has been connected with the institution for about three years. Prior to that he was Assistant VicePresident of the Manufacturers' Trust Co. and district credit manager of the B. F. Goodrich Rubber Go. It was also announced that Thomas Byrne, who has been with the bank since it opened four years ago, had been appointed Assistant Trust Officer. Officers and directors of the Clinton Trust Co. held a reception in the bank's quarters on Tuesday evening (Dec. 19), to observe the fourth anniversary of the opening of the bank on Dec. 19 1929. The occasion was marked by the unveiling of an oil portrait of George Clinton which hangs on the wall of the main bank floor. The picture, painted by Jassa Salganik, takes its place with the portrait of De Witt Clinton which was unveiled at the third anniversary, a year ago. Ellwood M. Rabenold, Chairman of the Board, addressed the guests at the unveiling, which was-followed by the reception. The latest published statement of the Clinton Trust Co. as of Sept. 30, shows total resources of $3,950,944, including $540,470 cash, $1,289,650 bonds and $1,818,830 loans and discounts. Deposits aggregate $2,811,710 and combined capital, surplus and undivided profits total $878,727. The Comptroller of the Currency on Dec. 6 granted a charter to the New Public National Bank of Rochester, Rochester, N. H. William M. Lord is President and Percival H. Safford Cathier of the new bank, which succeeds the Public National Bank of the same place. Beginning Dec. 18, savings department depositors in the defunct Exchange Trust Co. of Boston, Mass. (which closed in April 1932), were to share a dividend of $4,118,812, according to an announcement made Dec. 14 by Thomas W. Murray, President of the Union Savings Bank of Boston, and Henry H. Pierce, Supervisor of Liquidations in the Massachusetts State Banking Department. The Boston "Herald" of Dec. 15, from which the above information is obtained, furthermore said in part: This distribution will be shared in by 30,936 depositors, many of whom will be paid in full. Under the plan for this release of deposits, accounts of $50 and less will be paid in full, accounts between $50 and $100 will be entitled to a payment of $50, while accounts in excess of $100 will be entitled to payments of 50% of the total deposits. Pass books on the Union Savings Bank of Boston will be mailed to those depositors whose balances exceed $3 while checks will be forwarded to members of the Christmas and other club accounts and to depositors whose balances were less than $3. As the remaining assets of the closed bank are liquidated additional distributions will be made. . . . Deposits, represented by new pass books on the Union Savings Bank of Boston, or additional funds deposited, will go on interest Jan. 10 1934. Any and all amounts released to depositors under the reorganization plan, including those exceeding $4,000, may be continued on deposit with the Union Savings Bank. That branch banking was begun in Hartford, Conn., on Dec. 11,is indicated in the following taken from the Hartford "Courant" of Dec.9: Formal votes to bring about the establishment of the Bankers' Trust Co. as a branch bank of the Hartford National Bank & 'Print Co. were adopted at special meetings of stockholders of the respective banks on Friday (Dec. 8). In the meantime other incidental details are being completed and on Monday morning, Dec. 11, the Hartford National Berl & Trust Co.'s Farmington Avenue branch will be functioning. . . . The stockholders of the Hartford National Bank & Trust Co. met Friday forenoon and ratified the agreement relating to the consolidation. The necessary votes received the unanimous approval of stockholders. The proposed consolidation of the Bankers' Trust Co. with the Hartford National Bank & Trust Co. was referred to in our Nov. 11 issue, page 3448. The Rockville National Bank, Rockville, Conn., was placed in voluntary liquidation at the close of business Dec. 12 1933. The institution, which was capitalized at $100,000, was absorbed by The Hartford-Connecticut Trust Co. of Hartford, Conn. --•-A charter was issued on Dec. 2 by the Comptroller of the Currency for the Branchville National Bank, Branchville, N. J., with capital of $50,000. The new institution succeeds the First National Bank of Branchville. Charles J. McCloskey is President and John K. Showers, Cashier, of the new bank. Archibald M. Henry, former President of four New Jersey banks which closed in August 1931, died suddenly of heart disease at his home in Jersey City on Dec. 14. The four banks of which Mr. Henry had been head were the Union City National Bank, the Bergenline Trust Co., the National Bank of North Hudson and the Jackson Trust Co. of Jersey City. The first three banks, all in Union City, remained closed, but 4478 Financial Chronicle the Jackson Trust Co. was taken over by the Commercial Trust Co. as a branch. A Democrat, Mr. Henry was a member of the New Jersey Assembly in 1915. In 1901 he was a candidate for Mayor of Jersey City, but was defeated by Mark Fagin. The deceased banker was 70 years of age. Edward E. Gnichtel, a Vice-President and a Director of the Federal Trust Co. of Newark, N. J., died on Dec. 21. Mr. Gnichtel, who was 65 years of age, was born in Newark. As a young man, he entered the employ of a Newark brush manufacturing company; later was a traveling salesman and in 1894 organized the Newark Brush Co., from which he subsequently retired. In 1912 Mr. Gnichtel organized and became President of the Springfield Avenue Trust Co. of Newark. In 1927 the institution was merged with the Federal Trust Co., and Mr. Gnichtsl became a Vice-President of the enlarged institution and a Director, serving until his death. The deceased banker in 1901, 1902 and 1903 was elected a State Assemblyman, serving on the Banking and Insurance Committee. President Calvin Coolidge appointed him as Collector of Internal Revenue in 1925; He resigned the office in 1927 to devote his time to his personal affairs. On Dec. 7 the Comptroller of the Currency granted a charter to the Strausstown National Bank, Strausstown, Pa., with capital of $50,000. It replaces the Strausstown National Bank. H. W. Anthony and H. M. Oberholtzer are President and Cashier of the new bank. • Thomas A. Bracken Jr., formerly Assistant Trust Officer of the Real Estate Trust Co., of Philadelphia, Pa., has been promoted to Trust Officer by the Board of Directors, according to the Philadelphia "Ledger" of Dec. 15. John A. McCarthy, Executive Vice-President and former Trust Officer, continues as Executive Vice-President. The Crafton National Bank, Crafton, Pa., capitalized at $100,000, was chartered by the Comptroller of the Currency on Dec. 6. It succeeds the First National Bank of Crafton and is headed by L. P. Myers, with J. W. Griffin as Cashier. A cbarter was granted on Dec.8 by the Comptroller of the Currency to the First National Bank of Braddock, Braddock, Pa., capitalized at $150,000. It succeeds the First National Bank of Braddock. H. J. Wagner and Thomas M. Watt are President and Cashier, respectively, of the new institution. We learn from Philadelphia "Financial Journal" of Dec. 16 that the deposit liability of the closed Northwestern Trust Co. of Philadelphia, Pa.,as of July 31 1933,totals $5,996,698 while unpledged assets were appraised at $1,468,891, according to the first and partial account of William D. Gordon, Secretary of Banking for Pennsylvania filed on that date with the Prothonotary. The account covers the period from date of closing, July 17 1931 to July 31 1933. The paper mentioned went on to say: Total book value of assets is placed at $13,860,768. These assets were appraised at $4,457.713, of which $2,988,822 were pledged, being 67% or the total assets, while $1,468,891 were unpledged, being 33% of the total assets. "An application is being made to the new Deposit Liquidation Board recently created by President Roosevelt, which has signified its intention of liberally lending on the assets of closed banks on values based upon three to five-year recovery," the account says. "The Department of Banking Is exerting every effort to obtain the maximum amount as a loan on assets which, unfortunately have little or no market at the present time. "The liquidation of this bank due to irregularities and mismanagement has been surrounded by many complications, and considerable litigation has been involved in establishing equities for the depositors. The nonliquidity of the assets also has rendered liquidation difficult. All possible efforts have been directed to the recovery of assets by legal suits and to the conservation of the other assets, to the end that all possible equities would be preserved, for to dump the large volume of real estate and other nonliquid assets, for which there is practically no market at this time, would result in a ruthless sacrifice of depositors' remaining equities." The total book value of the time and demand unsecured loans, which were made chiefly to builders in connection with building operations that had been financed by the bank, was $5,377,107, which were appraised at $1,270,679. The bank pledged unsecured loans with a book value of $1,181.607. which were appraised at $584,255. The unpledged unsecured loans had a book value of $4.195.500, which were appraised at $686,424. Real estate department accounts receivable which were carried on the books at $1,360,564 were appraised at $5,189. Dec. 23 1933 The new institution is capitalized at $100,000, consisting of half preferred and half common stock, and succeeds The Blairsville National Bank. H. P. Rhoads is President and H. B. Baker, Cashier, of the new bank. The Union National Bank of Waynesburg, Waynesburg, Pa., with capital of $200,000, was chartered by the Comptroller of the Currency on Dec. 12. The new institution succeeds The Union Trust Co. of Waynesburg. H. D. Freeland and Chas. T. Strosnider are President and Cashier, respectively, of the new bank. On Dec. 11 the Comptroller of the Currency granted a charter to the First National Bank of Albion, Albion, Pa. The new bank, which succeeds The First National Bank, is capitalized at $50,000, half of which is preferred and half common stock. H. S. Dershimer is President and Charles C. Ringler, Cashier, of the institution. Net profits of $1,765,867 for the year ending Nov. 30 1933 are reported by the Girard Trust Co. of Philadelphia, Pa. The sum of $1,600,000 was paid to the shareholders during the year represented by four quarterly dividends of $400,000 each. Undivided profits total $1,357,789, an increase of more than $122,919 over the previous year. The Philadelphia "Financial Journal" of Dec. 18, from which we have taken the foregoing, continued: In his report to the shareholders, A. A. Jackson. President of the company, says: "Notwithstanding the financial and industrial conditions through which the country has been passing it is gratifying to record that after charging and crediting the reserve fund with certain items, it now stands in the amount of $3,911,990. This figure exceeds the market quotation depreciation of your securities and leaves a margin against any present deficiency In the value of your mortgage and real estate accounts." Commenting on the Federal Banking Act, he said: "The Federal Banking Act of 1933 directed the formation of a corporation for the insurance of bank deposits with a forerunner of a temporary organization which every member of the Federal Reserve System must join. The life of the temporary fund so constituted is to be from Jan. 1st to July 1st 1934. Its purpose is to insure to the extent of $2,500 each depositor in every member bank of the Federal Reserve System, and in every non-member bank admitted to the benefits of the fund. . . . On July 1 1934, there becomes operative the permanent corporation to insure all deposits, the first $10,000 balance in full, the next $40,000 to 75% and any balance over $50,000 as to one-half of it." The staff of the company now numbers 714, which is an increase of 43 over the same period of last year. At the annual meeting of stockholders of the Girard Trust Co. to-day (Dec. 18), retiring directors were re-elected. A charter was issued by the Comptroller of the Currency on Dec. 8 for the First National Bank in Parkton, Parkton, Md., with capital of $50,000. The new bank succeeds the First National Bank of Parkton and is headed by John Mays Little, with H. Ernest Krout as Cashier. Effective Nov. 28 last, the First National Bank of Ronceveste, West Va., went into voluntary liquidation. The institution, which was capitalized at $75,000, was succeeded by the First National Bank in Ronceverte. According to Toledo, Ohio, advices, on Dec. 9, appearing in the "Wall Street Journal," the American Bank of Toledo will pay.a dividend of 10% shortly to its depositors, following the payment of part of the double liability assessment made against the stock held by the American Flint Glassworkers' Union, which held control of the bank. Associated Press advices from Portsmouth, Ohio, on Dec. 11 stated that payment of a 5% dividend to depositors of the closed Ohio Valley Bank of Portsmouth was authorized in Common Pleas Court on that day. The dispatch added: Albert E. !darting, President of the bank, consented to the payment, which will release $25,000 to depositors. The bank several months ago paid a 20% dividend, releasing about $96,000. On Dec. 9 the Comptroller of the Currency chartered the First National Bank of Finleyville, Finleyville, Pa., with capital of $50,000. The new institution succeeds The First National Bank of Finleyville. It is headed by Frank H. Finley with R. F. Sprowles as Cashier. John E. Hodge, Vice-President for many years of the Provident Savings Bank & Trust Co. of Cincinnati, Ohio, died suddenly of a heart attack on Dec. 12. Mr. Hodge, who was 62 years of age, was born in Danvers, Ill., but went to Cincinnati as a young man. After being associated with the old Second National Bank of Cincinnati, he entered the Provident Savings Bank & Trust Co. upon its establishment in 1900 as Assistant Cashier. In 1907 he was promoted to Secretary and in 1910 advanced .to Vice-President, the office he held at his death. The Blairsville National Bank, Blairsville, Pa., was chartered by the Comptroller of the Currency on Dec. 9. The First National Bank at Swayzee, Swayzee, Ind., was granted a charter by the Comptroller of the Currency on Volume 137 Financial Chronicle Dec. 6. The new ,institution, which succeeds the First National Bank of the same place, is capitalized at $50,000, half of which is preferred stock and half common stock. William J. Milnes is President of the new bank and Charles W.Hamer Its Cashier. The National Bank of Monticello, Monticello, Ill., capitalized at $50,000, was chartered by the Comptroller of the Currency on Dec. 7. The institution succeeds the First National Bank of Monticello. W. B. Porterfield is President and Herbert Mohler, Cashier. On Dec. 2 the Comptroller of the Currency granted a charter to the City National Bank in Dixon, Dixon, Ill., capitalized at $100,000. The new institution succeeds the City National Bank of Dixon. Z. W. Moss and Clyde H. Lenox are President and Cashier, respectively. The Comptroller of the Currency on Dec.7 issued a charter for the First National Bank of Mount Vernon, Mount Vernon, Ill., with capital of $100,000. The new bank replaces the Third National Bank of Mount Vernon and is headed by R. 0. Kaufman, with Marlin Rich as Cashier. That the Auburn State Bank of Auburn, Ill., had received approval of a loan of $75,000 from the Federal Liquidation Corporation in Washington for the purpose of paying dividends, was announced this week by Edward J. Barrett, State Auditor of Illinois, according to Chicago advices to the "Wall Street Journal" on Dec. 14, which added: William L. O'Connell, receiver for the bank, stated that this is the third Illinois bank to receive such a loan, and that it will enable him to pay a dividend of 25% to the depositors of the institution. The Comptroller of the Currency on Dec. 11 issued a charter to The National Bank & Trust Co. of Sycamore, Sycamore,Ill. The new bank, which represents a conversion to the National system of the First Trust & Savings Bank of Sycamore, is capitalized at 3100,000. Jane W. Dutton is:President of the institution and Arthur L. Stark, Cashier. The Executive Committee's recommendation that the First National Bank of Chicago, Ill., issue and sell $25,000,000 of 5% retireable preferred stock to the Reconstruction Finance Corporation was approved by the bank's directors on Dec. 19. They also directed that the proposition be placed before the stockholders at the annual meeting on Jan. 9. A letter addressed to the shareholders under date of Dec. 19 by M.A. Traylor, President of the First National Bank, stated that the committee had reported that although there had been no official requirement that the bank sell preferred stock, it was its judgment that the interests of the holders of the present capital stock of the bank would be best served by the issuance and sale at this time of $25,000,000 of retireable preferred stock to the RFC. The Committee further reported to the Board that, subject to its approval, arrangements had been made with the Comptroller of the Currency and the RFC for such sale. • •State Auditor Barrett of Illinois on Dec. 15 announced that he had authorized payment of a dividend of 10%, amounting to $64,000, to depositors of the Bank of Harvey at Harvey, Ill., according to the Chicago "News" of Dec. 15, which added: This is the second 10% dividend to be declared at this bank since it closed in January 1932. Checks are to be mailed before Jan. 1. We learn from a Chicago, Ill., dispatch to the New York "Times" on Dec. 19 that the directors of the Northern Trust Co. of Chicago on that date authorized the regular quarterly dividend of $4.50 a share, thus continuing the $18 annual payment. The institution is the only large Chicago bank that has maintained its 1929 rate throughout the depression years. No action was taken on increasing the capitalization of the institution, it was said. The United States Government on Dec. 21 became the largest stockholder of the Continental Illinois Bank & Trust Co. of Chicago, fli., when the stockholders of the institution approved a sale of virtually $50,000,000 in preferred stock to the Corporation. More than 605,000 shares were voted in favor of the proposal of the directors to issue the preferred stock in line with the Government's request for increased capital of banks to aid the business recovery program. In reporting the matter, a Chicago dispatch by the Associated Press on the date mentioned, continuing said: 4479 One shareholder held out against the proposition and as a consequence the Government will be able to purchase all but $333.33 worth of the preferred issue. The one shareholder insisted on exercising his right to acquire that amount in preferred stock. The Continental Illinois by virtue of the stockholders' decision becomes the first of the country banks to complete negotiations for Governmental participation in its business as part owner. The stockholders also ratified other points of the directors' program which included write-down of the outstanding 575,000,000 in common stock to 525,000,000 and the setting up of an additional 550,000,000 reserve against assets depreciated during the depression. Common stock par value was reduced from $100 to 33 1-3 a share. James R. Leaven, President of the bank,in a talk at the meeting specially called to take action on the RFC offer explained the chargeoffs and said a return to normal business conditions would result in substantial recoveries from the reserves. "I do not fear control by the Government as a result of this sale of preferred stock to the RFC," Mr. Leaven said. "Their goal is the same as ours to create a sound banking system." An amendment to the bank's articles of association approved at the meeting gives the RFC power to regulate salaries of officers and employees as long as it holds 25% of the total preferred shares outstanding. Asked whether a figure of $28,000,000 which the bank was said to have loaned to Samuel Insull enterprises was correct, Mr. Leaven replied: "I am Privileged to say that it was that much and probably more." The National Bank of Hastings, Hastings, Mich., was chartered by the Comptroller of the Currency on Dec. 2. The new institution, which is capitalized at $50,000, replaces the Hastings National Bank. John C. Ketcham is President and Warren E. Carter, Cashier, of the new bank. The Central National Bank at Battle Creek, Battle Creek, Mich., was chartered by the Comptroller of the Currency on Dec.4 1933. The new institution, which replaces the Central National Bank & Trust Co., is capitalized at $910,000, consisting of $550,000 preferred stock and $360,000 common stock. Frank G. Evans is President of the new bank and P. J. Ross, Cashier. On Dec. 14 the Comptroller of the Currency granted a charter to the National Bank of Wyandotte, Wyandotte, Mich. The new bank succeeds The First National Bank of the same place and is capitalized at $150,000, made up of $100,000 preferred and $50,000 common stock. Charles A. Brethen and Hays Metcalf are President and Cashier, respectively, of the new institution. The Union National Bank of Ashland, Wis., was granted a charter by the Comptroller of the Currency on Dec. 9. The institution succeeds the Ashland National Bank and the Northern National Bank, both of Ashland, and is capitalized at $100,000, consisting of $50,000 preferred and $50,000 common stock. Felix Penn is President and G. A. Carlson Cashier, of the new bank. As of Dec.5,the First National Bank & Trust Co. in Minot, N. D., changed its name to the First National Bank in Minot. That depositors in three closed Iowa banks, viz.: The Northwest Davenport Savings Bank, Davenport; the Home Savings Bank of Davenport, and the Bettendorf Savings Bank of Bettendorf, were to receive payments of approximately $179,491, probably by Christmas, was reported in a dispatch by the Associated Press from Davenport on Dec. 12, which, continuing, said: These first payments from the three institutions, which closed simultaneously last December, amount to 5% in the case of the Northwest Davenport Savings and the Home Savings banks, and 10% for the Bettendorf Savings Bank. The Stockgrowers' National Bank of Ashland, Kan., capitalized at $50,000, was placed in voluntary liquidation on Nov. 27 1933. It was succeeded by the Stockgrawers' State Bank. The National Commercial Bank of Liberty, Liberty, Mo., a conversion to the National system of the Commercial Bank of that place, was chartered by the Comptroller of the Currency on Dec. 15. Frank Hughes is President and Lewis B. Dougherty Jr Cashier of the new bank, which is capitalized at $100,000. The Paintsville National Bank, Paintsville, Ky., capitalized at $200,000, was placed in voluntary liquidation on Dec. 4 1933. It was succeeded by the First National Bank of the same place. Advices from Versailles, Ky., on Dec. 13 to the Louisville "Courier-Journal" stated that Ernest McWilliams, special Deputy State Banking Commissioner in charge of liquidation of the Amsden Bank & Trust Co., Versailles, on that day 4480 Financial Chronicle announced an immediate distribution (the first) to be made to depositors of 10% of the amount of their deposits in the bank at the time of its closing, Sept. 10 1931. The Union National Bank of Oxford, Oxford, N. C., with capital of $50,000, was chartered by the Comptroller of the Currency on Dec. 5. The new institution represents a conversion to the National System of the Union Bank & Trust Co. of Oxford. J. S. King and J. P. Harris are President and Cashier, respectively, of the new bank. Dec. 23 1933 accounts, and other creditor balances, at £34,423,315. The paid-up capital of the institution is £1,100;000 and its reserve fund £1,550,000, exclusive of £132,000 set aside to meet the dividend requirement, and £81,755 carried forward. The Most Hon. the Marquis of Zetland is Governor; Sir Hector Munro of Foulis, Bt., Deputy-Governor, and John Taylor Leggat, General Manager of the institution, which was established March 211825. The annual report of Barclays Bank (Dominion, Colonial and Overseas), head office London, covering the fiscal year The Citizens' National Bank of Morgan City, La., a new ended Sept. 30 1933, has just come to hand. It shows net institution, opened for business recently with capital of profits for the period (after making provision for bad and $100,000, and surplus of $10,000, giving Morgan City and doubtful debts and contingencies) of £371,549, which, when Berwick, La., new banking facilities. Associated Press added to £215,885, the balance to credit of profit and loss advices from Morgan City on Dec. 11, reporting the above, brought forward from the preceding 12 months, made a went on to say: • total of £587,434 available for distribution. Out of this The officers of the new bank are N. H. Breaux, President; J. H. Loeb, amount allocations were made as follows: £50,000 to take Chairman of the Board; Dr. C. C. De Gravelles and P. R. Norman, Vicecare of income tax, &c.; £100,000 added to contingency Presidents; C. P. Lynch, Active Vice-President, and Joseph L. Fisher, fund; £107,495 to pay interim dividends at the rate of 8% Cashier. The sum of $60,000 was subscribed locally and $50,000 preferred stock was taken by the Reconstruction Finance Corporation. per annum on the cumulative preference shares, and at the rate of 4 per annum on the "A" and "B" shares (less Effective Dec. 1 1933, the Hico National Bank, Hico, Tex., income tax); £53,790 to take care of final dividend at the was placed in voluntary liquidation. The institution, which rate of 8% per annum on the cumulative preference shares had a capital of $60,000, was absorbed by the First National of £1 each fully paid (less income tax), and £59,672 to Bank of Hico. pay final dividend at the rate of 5% per annum on the "A" Effective Dec. 4 1933, the Lewiston National Bank, shares of £1 each, fully paid, and the "B" shares of £5 Lewiston, Ida., capitalized at $100,000, went into voluntary each, £1 paid (less income tax), leaving a balance of £216,477 liquidation. The institution was succeeded by the Lewiston to be carried forward to the current fiscal year's profit and loss account. National Bank. Total resources of the bank are shown in the statement Distribution of the second liquidating dividend of the de- as £85,225,869, of which £30,336,225 represent cash in funct California National Bank of Sacramento, Calif., aggre- hand and other cash items, while current deposit and other gating $2,250,000 was begun on Dec. 12 by H. W. Douglas, accounts, including reserve for income tax and contingenFederal Receiver of the institution, according to advices from cies and balance of profit and loss, are given at £74,521,924. that city printed in the San Francisco "Chronicle," which The institution's paid-up capital is £4,975,500 and its reserve added: fund £1,650,000. Frederick Craufurd Goodenough is ChairA $3,600,000 dividend recently was paid to depositors of the sister inman of the Board of Directors, Raoul Hector Foa, Deputystitution, the California Trust and Savings Bank. Chairman, and Sir John Caulcutt, General Manager. The dividend amounts to approximately 30% of the total deposits of the The ordinary general meeting of the shareholders of the National bank, the smaller of the two banks. The first dividend was paid Aug. 28, amounting to $1,500,000. bank will be held on Jan. 18 1934. The Portland "Oregonian" of Dec. 13 stated that 3,000 depositors of the closed Commercial Bank & Trust Co. of Wenatchee, Wash., would receive $101,565 in dividends immediately. This is a 15% dividend, making 35% paid thus far. A dispatch by the Associated Press from Walla Walla, Wash., on Dec. 11 stated that a pre-Christmas dividend amounting to $63,200 and representing 7% of the liability of the Peoples State Bank of Walla Walla, which closed Sept. 14 1932, was ordered paid Dec. 15, in a Court order signed on that date. A previous dividend of 10% was paid at this time a year ago. The Board of Directors of Barclays Bank (Dominion, Colonial and Overseas) head office, London, recommend final dividends for the year ended Sept. 30 1933 at the rate of 8% per annum on the cum. preference shares, and at the rate of 5% per annum on the A and B shares, making, with the interim dividend paid in July last, 43 4% for the year upon the A and B shares. Income tax at the rate of 4s. 2d. in the pound will be deducted in all cases. We are in receipt of the annual report of the National Bank of Scotland Ltd.(head office Edinburgh), covering the fiscal year ended Nov. 1 1933. The statement, which was presented to the shareholders at their annual general meeting on Dec. 21, shows net profits, after deducting expenses of management at head office, London office, and 184 branches and sub-offices, allowing for rebate, interest, &c., and after making provision for all bad and doubtful debts not otherwise provided for, of £267,661. To this amount was added £76,094, representing balance brought forward from the preceding fiscal year, making together £343,755 available for distribution. From this sum the following appropriations were made: £132,000 to pay dividend at the rate of 16% per annum (this being exclusive of income tax of £44,000) payable to the proprietors in equal parts on Jan.9 and July 10 1934; £75,000 credited to contingent fund; £25,000 applied in reduction of cost of heritable property, and £5,000 to staff widows' fund, leaving a balance of £81,755 to be carried forward to the current year's profit and loss account. The bank's total resources are shown in the report as £41,644,682, and deposit receipts, savings accounts, current COURSE OF BANK CLEARINGS. Bank clearings this week will show an increase as compared with a year ago. Preliminary figures compiled by us, based upon telegraphic advices from the chief cities of the country, indicate that for the week ended to-day (Saturday, Dec. 23) bank exchanges for all the cities of the United States from which it is possible to obtain weekly returns will be 5.6% above those for the corresponding week last year. Our preliminary total stands at $4,755,385,410, against ,504,226,856 for the same week in 1932. At this center there is a gain for the five days ended Friday of 7.5%. Our comparative summary for the week follows: Clearings—Returns Si' Telegraph. Week Ending Dec. 23. New York • Chicago Philadelphia Boston Kansas City St. Louis San Francisco Los Angeles Pittsburgh Detroit Cleveland Baltimore New Orleans Twelve cities, b days Other cities, 5 days Total all cities, 5 days All cities, 1 day Total all cities for week 1933. 1932, 32,518,118,903 $2,342,646,920 167,179,348 147,080,082 214,000,000 246,000,000 152,000,000 142,000,000 52,911,920 50,257,459 52,800,000 48,200.000 79,500,000 69,931,000 No longer will re port Clearings. 65,814,064 62,223,150 49,887,441 47,627,034 44,063,632 49,760,760 39,969,682 40,768,062 23,889,000 25,630,156 $3,460,133,990 502.687,185 Per Cent. +7.5 +13.7 —13.0 +7.0 +5.3 +9.8 +13.7 +5.8 +4.7 —11.4 —2.0 —6.8 +5.7 $3,272,124,623 454,138,670 +10.7 $3,962,821,175 792,564,235 $3,726,263,293 777,963,563 +6.3 +1.9 54.755.385.410 54.504.226.856 +5.6 --- Complete and exact details for the week covered by the foregoing will appear in our issue of next week. We cannot furnish them to-day, inasmuch as the week ends to-day (Saturday) and the Saturday figures will not be available until noon to-day. Accordingly, in the above the last day of the week has to be in all cases estimated. In the elaborate detailed statement, however, which we present further below, we are able to give final and complete results for the week previous, the week ended Dec. 16. For that week there is a decrease of 0.2%, the aggregate of clearings for the whole country being $4,813,768,934, against $4,824,422,239 in the same week in 1932. Outside of this city there is a decrease of 0.3%, the bank clearings at this center having recorded a loss of 0.2%. We group the cities according to the Federal Reserve dis- tricts in which they are located and from this it appears that in the New York Reserve District, including this city, the totals record a loss of 0.8%, in the Boston Reserve District of 3.1% and in the Philadelphia Reserve District of 12.5%. In the Cleveland Reserve District the totals show a decline of 1.7% and in the Richmond Reserve District of 16.7%, but in the Atlanta Reserve District the totals are larger by 26.5%. In the hicago Reserve District there is an increase of 7.4%, in the St. Louis Reserve District of 8.1% and in the Minneapolis Reserve District of 9.8%. In the Kansas City Reserve District the gain is 10.0%, in the Dallas Reserve District 25.1% and in the San Francisco Reserve District 5.5%. In the following we furnish a summary of Federal Reserve districts: SUMMARY OF BANK CLEARINGS. Week Ended Dec. 161933, 1933. Ine.or Dec. 1932, 1931. Federal Reserve Dists. let Boston_.__12 cities 2nd New York_.12 " 3rd Philadelpla 9 " 4th Cleveland__ 5 " 5th Richmond _ 6 " 6th Atlanta_ __ _10 " 7th Chicago _ _ _19 " 8th St.Louis... 4 " 9th Minneapolis 7 " 10th Kansas CHF 9 " 5 " 11th Dallas 12th San Fran 13 " $ 218,114,416 3,177,733,713 277,240,834 180,292,177 90,611,641 101,562,613 288,076,853 96,342,872 72,298,623 87,688,473 44,567,018 179,251,701 $ 224,993,427 3,202,601,894 316,678,776 183,449,985 107,986,775 80,313,492 268,136,797 89,135,012 65,821,826 79,694,502 35,631,798 169,977,955 % -3.1 -0.8 -12.5 -1.7 -16.1 +26.5 +7.4 +8.1 +9.8 +10.0 +25.1 +5.5 111 cities Total Outside N. Y. City 4,813,768,934 1,726,672,739 4,824,422,239 1,731,413,776 -0.2 -0.3 flf.nro1a 32 cities 231.367.764 213.514.605 -1-8.4 $ 359,239,131 5,285,356,241 349,626,606 275,142,157 139,479,015 114,242,347 485.401,126 127,537,479 91,645,625 123,769,511 52,448,059 235,304,933 1930. $ 508,077.787 7.268,555,439 513,719,236 438,607,592 176,631,946 151,634,676 752,516,489 172,172,396 115,058,718 179,623,340 61,285,798 324,320,242 7,639,192,230 10,662,203,659 2,501,172,956 3,583,901,247 293.963.498 373.057.272 We now add our detailed statement, showing last week's figures for each city separately for the four years: Week Ended Dec. 16. Clearings at 1933. First Federal Maine-Bangor _ Portland Mass.-Boston_ _ Fall River _ Lowell New Bedford_ _ Springfield _ _ _ Worcester Conn.- Hartford New Haven _ _ RI -Providence N.H.-Manch'te 1932. Inc. Or Dec. $ $ % Reserve Dist rict.-Bosto n.449,534 353,825 +27.0 1,512,219 1,904,590 -20.6 193,000,000 194,505,779 -0.8 569,975 655,783 -13.1 245,632 256,936 -4.4 637,717 611,747 +4.2 2,622,210 2,710,586 -3.3 1,226,559 2,099.772 -41.6 7,719,757 9,941,785 -22.4 3,002,970 3,027,003 -0.8 6,750,500 8,489,400 -20.5 377,343 436,22 -13.5 Total(12 cities) 218,114,416 224,993,427 -3.1 1931. $ 1930. $ 573,503 3,371,655 315,000,000 943,811 489,092 922,420 4,368,475 2,832.572 13,104,066 6,245,926 10,660,300 727,311 589,973 3,545,196 454.743,350 1,202,010 554,637 1,139.892 5,102,677 3,759,324 15,728.614 6,381,439 14,642,200 688.475 359,239,131 508.077,787 Second Fede al Reserve D istrict.-Ne w York 7,015,899 4,139,485 +69.5 N.Y.-Albany _. 5,471,670 6,557,539 Binghamton_ _ 733,277 859,645 1,123,198 742,807 -1.3 Buffalo 25,102,395 22,029,501 +13.9 34.055,799 50,882,348 495,116 Elmira 471,710 +5.0 849,524 1,004,977 Jamestown_ _ _ 418,997 510,776 -18.0 794,173 1,065,014 New York_ _ 3,087,096,195 3,093,008,463 -0.2 5,138,019,274 7,078,302,412 Rochester 5,361,249 6,195,504 -13.5 9,547,963 11,615.787 Syracuse 3,218,459 .4,248,743 3,181,613 +1.2 5,723.501 Conn.-Stanford 2,456,977 2,039,572 +20.5 3,419,993 3,938,241 426,644 N. J.-Montclad 450,500 -5.3 614,826 857,184 Newark 16.883,153 28,068,685 -39.9 29,688,036 42,495.966 Northern N. J. 28,525.352 41,763,278 -31.7 57,786,795 64.989,272 Total(12 cities 1 3,177,733,713 3,202,601,894 Third Federal Reserve Dist riet.-Phila Pa.-Altoona _ 261,736 262,927 Bethlehem _ _ _ C c Chester 215,225 311,973 Lancaster _ _ 687,624 959,498 Philadelphia _ . 267,000,000 304,000,000 Reading 1,078,249 1,737,985 Scranton . 1,963,637 2,383,561 Wilkes-Barre_ . 1,265,030 2,179,492 York 1,124.333 1,108,340 N.J.-Trenton_ . 3.645,000 3,735,000 Total(9 cities). 277,240.834 180,292,177 -0.8 5,285,356,241 7,268,555,439 delphi a.639,419 -0.5 c c 31.0 782,398 -28.3 2,045,355 -12.2 330,000,000 -38.0 3.118,919 -17.6 3,614.227 -42.0 2,296,433 +1.4 1.957,855 -2.4 5,172,000 316,678.776 -12.5 Fourth Fede r al Reserve D strict.- Cie C c Ohio-Akron _ _ _. c Canton . c Cincinnati _ . 37,488,734 41,992,052 Cleveland_ _ _. 51,334,830 62,248,726 Columbus_ __ _ _ 7.883,600 7,369,300 924,134 Mansfield_ _ . 794,040 c c Youngstown _ _ 71,045,86 Pa.-Pittsburgh. 82,660,879 Total(5 cities) _ 183,449,985 349,626,606 veland .c c c c -10.7 57,035,438 -17.5 91,679,085 +7.0 9,565,000 +16.4 1,000,000 c c +16.3 115,862,634 -1.7 1,197,747 c 993,681 1,908,004 488,000,000 3,165,044 4,813,051 3,354.805 2,295,904 7,991,000 c c 65,672,427 137,276,138 16,054,000 1.296,870 21818,157 438,607,592 Fifth Federal Reserve Dist rIct.- Rich mond.-115,907 364,856 -68.2 690,988 W. Va.-IIunt'n _ 2,906,000 -21.2 2,290,000 3.787,883 Va.-Norfolk _ _ _ 31,706,119 31,766,606 -0.2 37,151.604 Richmond 772,310 +19.1 920,150 1.500.000 S.C.-Chariesto n 42,946,088 54,870,189 -21.7 72,509,080 Md.-Baltimore _ 12,633,377 17,306,814 -27.0 23,844,460 D. C.-Wash'g'n 1,106,808 4,613,960 47,626,000 2,080,936 93,009,303 28,194,939 107,986,775 -16.1 139,479,015 176.631,946 Sixth FederalI Reserve Dia trict.-Atlan ta.2,024,364 +69.3 3,427,008 Tenn.-Knoxvil e 9,022,161 +26.0 Nashville_ _. 11,372.233 25.100,000 +40.6 35,300,000 _ Ga.-Atlanta 764.549 +28.0 978,902 Augusta 464,652 +36.9 636,040 Macon 9,334,067 +21.3 11,322,000 Fla.-Jacksonvil e 14,441,935 7,545,833 +91.4 Ala.-Birm'ham _ 879,192 +6.6 _ 937,020 Mobile c C c Miss -Jackson._ 98,378 +47.8 145,357 Vicksburg_ - _ 25,080,296 -8.3 23,002,118 is La.-NewOrlea 3,295,286 11,161.853 36,700.000 1,237,873 698,283 12,534,310 12.098,153 1,278,034 c 106.991 35,131,564 2,000,000 17,757,696 46,916.086 1,795,940 1,630,605 14,667,056 18,531.650 1.647,463 c 159,833 46.528,347 80.313,492 +26.5 114,242,347 151,634,676 Total(10 OM 9 90,611,641 101,562,613 Week Ended Dec. 16. Clearings al- I 1933. 1932. line. or Dec. Seventh Feder at Reserve Ei 'strict-Chi cago87.908 -30.0 61,518 Mich.-Adrian_ _ 497,995 -19.2 402,338 Ann Arbor._ _ _ 53,232,737 +0.3 53,372,819 Detroit 2,034,953 -36.3 1,296.082 Grand Rapids. 494,400 -11.1 439,648 Lansing 917,902 -40.2 548,543 Ind.-Ft. Wayne 10,879,000 -7.6 10,053,000 Indianapolis_ 892,107 -40.7 528,743 South Bend_ _ _ 2,651,725 +40.0 3,712,636 Terre Haute_ _ 12,202,979 -2.0 11,961,209 Wis.-Milwaukee 501.120 -53.5 232,959 Iowa.-Ced.Rap. 4,730,957 +5.2 4,976,203 Des Moines__ +9.2 1,784,636 1,948,903 Sioux City_ _ Waterloo 913,055 -48.3 472,234 Ill.-Bloom.'gton. 192,597,987 171,841,339 +12.1 Chicago 504,393 -1.5 496,846 Decatur 2,075,886 +72.0 3,570,699 Peoria 538,954 -9.4 488.423 Rockford 1,354,751 -32.4 916.063 Springfield_ 1931. 1930. 182,823 924,181 109,442,790 3,619,484 2,593,280 1,588,900 14,440,000 1,511,968 4,620,001 19,889,206 845,394 5.766,590 3,184,122 221,247 706,817 167,886,363 5,195,401 2,709,381 3,493,374 18,464.000 2,015,813 5,224,356 25.737,093 2,684,394 7,658.382 4,225,059 1,245,940 308,354,226 647,943 3,076,913 1,199,069 2,268,296 1,608.226 494,237,196 1,147,278 3,991,297 2,807,978 2,502.834 +7.4 485,401,126 752,516,489 Eighth Federal Reserve Dis trict-St.Lo U1SInd.-Evansville, 59,400,000 -3.5 57,300,000 Mo.-St. Louis.. 19,110,935 +18.4 22,627,696 Ky.-Louisville 10,204,480 +57.8 16,099,176 Tenn.-Memphis Ill.-Jacksonville 419,597 -24.7 316,000 Quincy 89,200,000 23.214.772 14,425,563 128,200,000 26,844,556 16.531,307 697,144 596,533 +8.1 127,537,479 172,172,396 Ninth Federal Reserve Dis trict-Minn eapolis 1,667,172 +12.6 1,877,438 Minn.-Duluth._ 44,852,362 +8.7 48,767,905 Minneapolis._ 14,759,599 +19.0 17,559,110 St. Paul 1,731,025 -9.9 1,559,181 No. Dak.-Fargo 489,828 +7.1 524,564 S. D.-Aberdeen 302,927 -1.1 299,543 Mont.-Billings _ 2,018,913 -15.8 1,700,882 Helena 2,689,672 63,420,010 20,036,686 1,913,006 652,697 405.286 2,528,268 4,616,793 77,265,563 26.075,201 2.040,764 1,076,031 668,866 3,315,500 +9.8 91.645,625 115,058,718 Tenth Federal Reserve Dis trict-Kens as City 80,303 -35.6 51,692 Neb.-Fremont.. Hastings 1,414,684 +28.0 1,810,325 Lincoln 17,480.100 +28.0 22,373,403 Omaha 1,343.355 +17.2 1,575,073 Kan.-Topeka 3,570,981 -41.7 2,082,903 Wichita 52,437,082 +7.6 56,411,537 Mo.-Kans. City 2,229,412 +15.0 2,564,551 St. Joseph_ _ _ _ 589.100 -23.7 449,321 Colo.-Col.Spgs_ 549,485 -33.1 367,668 Pueblo 221,840 279,077 2,464,692 28,915,445 2,020,052 4,350,005 80,188.425 3,599,184 951,094 1,058.774 3,149,141 41,991,336 3,079,263 6,647,829 116,641.820 5,128,876 1,169,327 1,536,671 79,694,502 +10.0 123,769,511 179,623,340 Eleventh Fede ral Reserve District-Da Has628,695 +29.0 810.724 Texas-Austin 25,881,897 +29.4 33.502,812 Dallas +9.1 4,965,979 5,417,836 Forth Worth_ _ 2,278,000 +20.9 2,753,000 Galveston 1,877,227 +10.9 2,082,646 La.-Shreveport. 1,198,864 36,548,547 8,344,324 3,488,000 2,868,324 1,422,913 42,357.406 9,880,308 3,884,000 3,741,171 35,631,798 +25.1 52,448,059 61,285,798 288.076,853 Total(19 cities) 96,342,872 Total(4 cities). 72,288,623 Total (7 eities)- 87.686,473 Total(9 cities). 44,567.018 Total(5 cities). 268,136,797 89,135,012 65,821,826 Twelfth Feder al Reserve D istrict-San 20,534,875 21,458.757 Wash.-Seattle._ 4,926,000 6,308,000 Spokane 387.720 488,013 Yakima 15,607,130 18,957,059 Ore.-Portland._ 15.513,578 12,179,705 Utah-S. L. City 3,092,89 3,077.266 Calif.-L's Beach No longer will report clearin Los Angeles_ 3,197,72 2,725,665 Pasadena 6,700,53 4,827,674 Sacramento - - San Diego_ _ No longer will report clearin 95,185,188 San Francisco. 103,821,850 1,633,75 1,788,430 San Jose 1,126,66 1,426,867 Santa Barbara_ 825,49 805,624 Santa Monica_ 1,246,40 1,386,791 Stockton Franci sco29,347,944 +4.5 8,211,000 +28.1 636,036 +25.9 24,059,726 +21.5 13,995.029 -21.5 4,852,845 -0.5 gs. 4,935,879 -14.8 7,581,980 -28.0 gs. +9.1 134,729,263 2,211,554 +9.5 1,493,638 +26.6 1,467,731 -2.4 1,782,308 +11.3 191,743,618 3,087,877 2,146,131 2,222,240 2,361.100 235.304,933 324,320,242 +6.5 36,823.586 10,656,000 1,285,761 32,172,257 19,836.418 7,756.533 6,605,779 7,622,942 Total 13( cities) 179,251,701 169,977,955 Grand total (111 4,813,768,934 4.824,422,239 cities) -0.2 7,639,192,230 10662 203,659 1,726,672,739 1,731,413,776 -0.3 2,501,172,956 3,583,901,247 Outside N.Y Week Ended Dec. 14. 513,719,236 275.142,157 Total(6 cities) _ 4481 Financial Chronicle Volume 137 1933. CanadaMontreal Toronto Winnipeg Vancouver Ottawa Quebec Halifax Hamilton Calgary St. John Victoria London Edmonton Regina Brandon Lethbridge Saskatoon Moose Jaw Brantford Fort William... New Westminsterer Medicine Hat_ _ _ Peterborough.... Sherbrooke Kitchener Windsor Prince Albert_ _ -Moncton Kingston Chatham Sarnia Sudbury $ 67,458.027 80,054,420 34,611,949 11,611,573 3,607,666 3,199,477 1,905,496 3,175,056 4,222,841 1,398,882 1,338,396 2,074.547 3,378,747 2,770,820 258,325 397,585 1,086,881 445,445 600.742 505,601 398,198 186.982 542,978 460,152 805,096 2,017,367 227,538 754,181 459,751 448,339 352,443 612,263 Total(32 cities) 231.367.764 1932. Inc. or Dec. $ % 62,815,008 +7.4 71.623.041 +11.8 31,655,977 +9.3 10,999,040 +5.6 3,177,641 +13.5 3,646,86 -12.3 +10.0 1,732,61 2,877,20 +10.4 4,870,49 -13.3 1,418,985 -1.4 1,101,94 +21.5 1,980,62 +4.7 3,368,77 +0.3 2,497,60 +10.9 244,14 +5.8 123,71 +221.4 -0.8 1,095,23 432,43 +3.0 660,49 -9.0 471,76 +7.2 379,23 +5.0 155,33 +20.4 612,72 -11.4 582,032 -20.9 832,467 -3.3 1,721,036 +17.2 221,189 +2.9 657,258 +14.7 463,945 -0.9 389,072 +15.2 292,906 +20.3 413.804 +48.0 213.514.605 +8.4 1931. 1930. $ $ 96,150.052 126.721,786 87,448,137 113,334.627 47,937,311 42,718,126 19,659,010. 13,441,935 7,490,955 6,178.916 6,142,366 4,802,912 3,115,932 2,672,985 5,444,405 4,207,716 8,431.366 5,664,130 2,035,392 1,803,457 2,110,798 1,540,073 3,167,759 2,628,087 5,267,091 6.087,175 4,237,784 4,327,870 512,705 429.860 413,301 510,623 2,160,174 1,725.258 686,770 942,688 912.780 1,406,884 853,983 643,00 733.798 496,302 407,396 204,329 580.220 805,796 782.329 685,671 1.308.381 1,149,917 3,307.133 2,692.525 449,864 338,456 869.077 743,173 817,259 686,778 730,912 688,267 619,250 488,496 968.014 601,244 293.963.498 373,057,272 b No clearings available. c Clearing House not functioning at present. 4482 Financial Chronicle THE WEEK ON THE NEW YORK STOCK EXCHANGE. Dull trading and irregular price movements with a strong tendency toward lower levels characterized the trading during most of the week until Friday when the President's silver purchase proclamation caused the market to bound upward in sensational fashion. Prior to that the market was depressed all along the line, particularly on Wednesday when the market slumped badly. There were occasional rallies but these, as a rule, were short lived and made practically no impression on the downward trend. Specialties were the target for most of the selling, though there were also some substantial offerings in other prominent groups. Call money renewed at 1% on Monday and continued unchanged at that rate throughout the week. Sharp losses due to heavy selling toward the end of the first hour sent the market spinning downward on Saturday. The opening was spotty with a goodly part of the trading directed toward the motor shares. As the day progressed the selling gradually extended to other groups, particularly the railroad issues which lost, in some instances, up.to 2 or more points, the recessions in this group being due, in part, to the disappointing earnings statements for October. Pivotal stocks like Amer. Tel. & Tel., United States Steel and American Can tumbled to new lows for the week, and while some support in the way of short covering was apparent toward the close of the session, the final prices were not greatly changed. The outstanding losses recorded at the close included among others, Allied Chemical & Dye, 334 points to 1443.; American Can, 234 points to 94; American Hide & Leather pref., 35% points to 32; American Sugar (2), 25% points to 47; Amer. Tel. & Tel., 25% points to 11134; Chesapeake Corp., 25% points to 335%; Cuban American Sugar pref., 5 points to 20; Industrial Rayon, 2 points to 5834; J. C. Penny, 25% points to 52; Vulcan Detinning, 2 points to 53; Western Union, 25% points to.54, and Union Pacific, 14 points to 1124. Despite the marking up of the price of gold by the RFC, the stock market continued to move downward on Monday. Extreme dullness characterized the trading and several stocks, particularly in the specialties group, were sharply off on the day, especially Atlas Tack which slipped back 7 points in addition to the 1134 point loss recorded on Saturday. Toward the end of the session a mild rally got under way and United States Steel moved back to its best level of the day at 464 where it was fractionally higher than the preceding close. Amer. Tel. & Tel. was one of the weak spots as it showed a loss of 2 points before meeting support. Union Bag & Paper had a bad sinking spell and tumbled down to 44, though it recovered to some extent toward the end of the session and closed at 4634 with a net loss of 134 points. Other noteworthy recessions were American Beet Sugar pref., 234 points to 5334; American. Car & Foundry pref., 234 points to 3934; J. I. Case pref. (4), 13 % points to 68; Gillett Safety Razor, 634 points to 4534; Homestake Mining, 5 points to 310; International Business Machine (6), 2 points to 142; Liggett & Myers (5b), 45% points to 815%; Pacific Tel. & Tel., 3 points to 73; National Biscuit pref. (7), 534 points to 12934; Pure Oil pref., 2 points to 60, and Reading Company,234 points to 45. Local traction stocks showed considerable strength in an otherwise dull market on Tuesday. Increasing irregularity was apparent throughout the session and the turnover was down to approximately 1,000,000 shares. United States Steel, American Can, du Pont and a few other popular issues were fractionally higher. The market continued to drift along until around the third hour when selling gradually increased and many of the active stocks that had registered small gains during the morning trading turned downward and cancelled most of the early improvement. The recessions for the day included among others, American Beet Sugar pref., 35% points to 50; American Sugar pref., 3 points to 1045%; Atlantic Coast Line, 23, 4. points to 375%; Remington Rand 1 pref., 25% points to 3234; Pittsburgh & West Virginia, 4 points to 17; McKeesport Tin Plate, 34 points to 85; Gotham Silk Hosiery pref., 6 points to 59; Eastman Kodak, 1% 3 points to 80%; American Home (2.40), 25% points to 26; American Woolen pref. 5 134 points to 654, and Auburn Auto, 1% points to 53%. The avalanche of selling that flowed into the stock market on Wednesday carried many popular issues downward from 1 to 10 or more points. Late in the afternoon there was a moderate rally among some of the more active issues, but this did not hold and the market was heavy at the close. Union Bag & Paper showed pronounced weakness and tumbled downward 9 points when it was reported that the Exchange authorities were making inquiry into the recent activity in these issues. In the general list the losses were heaviest in Celanese, Hazel Atlas Glass, United States Industrial Alcohol, Johns-Manville, Industrial Rayon and Auburn Auto. Some recoveries were made during the afternoon but most of the stocks showing early declines failed to erase all of their morning losses. Prominent among the shares closing on the downside were such stocks as Allied Chemical & Dye 23 % points to 142, American Woolen pref. 3 points to 625%, Auburn Auto 35% points to 494,J. I. Cast. 35% Company points to 65, Celanese 6 points to 354,Homestake Mining 94 points to 300, Johns-Manville 3 points to 554,Reading Co. 3 points to 42, West Penn Electric"A" 434 points to 4034 and.Western Union 24 pointsto 5134. Stocks were somewhat irregular during most of the trading Dec. 23 1933 on Thursday, and while intermittent rallies helped to steady the list during the late trading, the recoveries generally were limited to small fractions. Short covering was apparent in the industrial group during the final hour and was a strong factor in firming up the market. Shares of tin Union Bag & Paper which led the downward slide on Wednesday worked up a small gain. Consolidated Gas dipped to a new low and the wet issues were off from 1 to 2 points. Railroad stocks, as a group, showed a net decline and public utilities were generally lower on the day. The major changes were, as a rule, among the preferred shares and, for the most part on the side of the decline. Prominent among the issues showing losses were American Chicle (3), 234 points to.47; American Hide & Leather pref.,2% points to 255%; American Tobacco pref. (6), 234 points to 10534; Bucyrus-Erie pref. (2), 33% points to 545%; Cushman Sons pref. (7), 5 points to 75;Endicott-Johnson pref.(7),3% points to 1164;FreeportTexas pref. (6), 1354 points to 1355%; Homestake Mining, 5 points to 295; Pubhc Service of N. J. pref. (7), 2 points to 85, and United States Industrial Alcohol,4 points to 4934. The stock market advanced on a broad front on Friday following the overnight announcement of the Government's plan to purchase domestic silver production at 6434 cents an ounce which is 20 cents above the current market rate. Mining shares led the upward swing and were carried rapidly forward in the late trading to new high levels. United States Steel, du Pont and numerous other pivotal issues joined the upward rush and sold at new peaks for the current movement. United States Smelting & Refining had one of its spectacular advances and opened on a block of 5,000 shares at 99, or 10 points above the previous close. Copper stooks were also up and substantial gains were recorded by American Can, Eastman Kodak, Amer. Tel. & Tel. and numerous other popular speculative issues. The gains for the day included among others, Allied Chemical & Dye, 634 points to 149; American Car & Foundry pref., 334 points to 405%; American Can, 45% points to 9734; Auburn Auto, 5 points to 5434; Atlas Powder, 35% points to 3434; Cerro de Pasco, 43% points to 465%;J.I. Case Co.,4 points to 68%;Colorado & Southern, 434 points to 3234; Columbian Carbon, 4 points to 62; du Pont, 434 points to 935%; Federal Mining & Smelting pref., 10 points to 90; Homestake Mining,5 points to 300; Republic Steel pref., 434 points to 4134; Union Pacific, 234 points to 11234 and United States Steel pref., 3 points to 89. TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE, DAILY. WEEKLY AND YEARLY. Week Ended Dec. 22 1933. Stocks, Railroad Slate. Number of and Miscell. Municipal & Shares. Bonds. Porn Bonds. Saturday Monday Tuesday Wednesday Thursday Friday Total _ 896,570 1,342,900 1,024,730 2,163,068 1,021,086 2,419,651 83,753,000 6,502,000 6,503,000 6,704,000 6,270,000 7,101,000 31,472,000 2,889,000 2,859,000 2,181,000 2,350,000 2,610,000 R RFIR MIS 220 $122 OM 214 221 non Sales at New York Stock Exchange. Week Ended Dec. 22. Stocks-No, of ahares_ Bonds. Government bonds___ State & foreign bonds_ Railroad & misc. bonds Total Bond Sales. United States Bonds. 85,679,000 10,592,500 13,013,500 10,225,500 9,129,400 12,009,500 8454,000 1,201,500 3,651,500 1,340,500 509,400 2,298,500 so AM 400 can MP 400 Jan. 1 to Dec. 22. 1933. 1932. 8,868,005 5,284,107 646,337,136 419,225,261 89,455.400 14,361,000 36,833,000 $9,045,000 17,244,000 36,314,500 5493,032.450 753,431,500 2,054,249,400 5562,187,050 739,411,100 1,602,576,000 1933. 1932. Total 360,649.400 562,603.500 33,300,713,350 32,904.174.150 DAILY TRANSACTIONS AT THE BOSTON. PHILADELPHIA AND BALTIMORE EXCHANGES. Boston. Week Ended Dec. 22 1933. Saturday Monday Tuesday Wednesday Thursday Friday Total Prey. wk. revised_ Philadelphia. Baltimore. Shares. Bond Sales. Shares. Bond Sales. Shores. Bond Sales. 14,595 28,421 21,256 38,706 7,814 9,985 $7,500 5,000 2,000 7,060 2,000 120,777 169.454 5,052 11,737 7,602 20,441 13.546 16,055 86,000 3,000 200 823,500 74,443 337.300 SR.11i 939 1,430 1,711 1,516 2,528 3,520 811,000 25,100 67,000 18,100 17,700 59.000 $11,200 11,644 8197,900 315000 15 750 2121.200 2,000 THE CURB EXCHANGE The curb market movements were somewhat indecisive during most of the present week. Though some improvement was apparent on Friday, prices shifted backward and forward in a moderately active market without definite trend. There were occasional rallies that gave promise.of better prices, but these generally petered out with nothing very definite in regard to trend. Specialties have shown some activity at higher prices. Industrials also have been slightly stronger and there has been a good demand for the liquor issues. Oil shares on the other hand, have been mixed and metal and mining stocks have had little support. Some selling has been in evidence but the dealings, on the whole, have been extremely light due,in part, to the nearness of the holiday season. On Saturday trading was dull and prices sagged all along the line. Declines were small, however, and there was a partial recovery before the market closed. Gold mining shares were dull, though some activity was apparent in Hudson Bay, Pioneer Gold and Took Hughes. Lake Shore Mines and Wright-Hargreaves, on the other hand, were inclined to move lower. Oil stocks led by Standard Oil of Indiana were slightly higher and industrial issues followed Financial Chronicle Volume 137 -the general trend. Public utilities were lower, and while the changes were generally small, the turnover was also in light volume. The specialties group showed moderate gains on Monday though the list, as a whole, was slightly, lower. Metal shares displayed mixed changes, most of the active stocks being in demand though the sales were not especially, noteworthy. The strong spot of the liquor issues was Hiram Walker which climbed about 2 points above the preceding close. Public utilities were under pressure and stocks like Electric Bond & Share and Commonwealth Edison were off on the day. Mining shares were irregular though Newmont, Wright Hargreaves and Pioneer Gold were fairly steady. In the industrial group, American Cyanamid, Garlock Packing, Sherwin Williams and Swift & Co. showed slight improvement toward the close of the session. Liquor shares moved forward as the market firmed up on Tuesday. The gains were not large but the upward swing was fairly steady. Trading continued extremely light in volume, and while there were some offerings, these were generally absorbed as the buying continued. Public utilities sagged, Electric Bond & Share moving fractionally downward and Bell Telephone of Canada slumped more than 2 points. Tampa Electric yielded more than a point and Cleveland Electric Illuminating ex-div. suffered profit taking. The industrial shares were moderately steady and Great Atlantic & Pacific Tea Co. reversed its recent downward course during the early trading but again fell off. Oil stocks made little progress either way. Alcohol issues were again in the foreground on Wednesday, and while the volume of trading was comparatively light most of the day,Hiram Walker and Distillers Seagram moved up about a point and Canadian Industrial Alcohol was at a standstill. Mining shares made small changes and industrial issues were without noteworthy feature. The trend was somewhat uncertain in the public utility group, some of the active issues showing fractional gains, while others equally prominent displayed moderate recessions. The latter group included such active stocks as Sherwin Williams, Swift & Co., Aluminum Co. of America and Cord Corp. Persistent offerings in the public utility group'forced most of the trading favorites to lower levels, though the changes, on the whole, were small. Oil issues were off on the day with Gulf Oil of Pennsylvania showing an opening decline of about 2 points. Practically every group on the Curb Exchange showed a mixed trend on Thursday, and while the undertone was firm, the volume of trading was small. Some of the outstanding leaders lost ground but there were also a fairly large number of prominent issues that registered modest gains at the close. In the utilities group, Consolidated Gas of Baltimore showed a gain of more than 2 points at one period of the trading but lost part of it before the close. Electric Bond & Share moved fractionally higher, while Niagara Hudson eased off about 1A point. The wet stocks were fractionally higher, Hiram Walker and Distillers Co., Ltd., showing slight gains, though Canadian Indus. Alcohol A and B stocks eased off toward the close of the market. Oil shares were mixed and mining issues were irregular. Following the forward surge of the big board, the Curb Exchange turned briskly upward on Friday and many active stocks showed gains of 2 or more points at the close. Profit • taking was apparent as the day advanced, though this was quickly absorbed and did not make very much change in the final prices. The strong stocks were Newmont Mining, New Jersey Zinc, Electric Bond & Share, Hiram Walker and Aluminum Co. of America. The range of prices for the week was generally toward lower levels, the recessions including among others Aluminum Co. of America 75 to 73, American Gas & Electric 21% to 193%, American Laundry Machine 11% to 113i, American Light & Traction 117 % to 103%, American Superpower 234 to 13/8, Atlas Corporation 113 to 103%, Central States Electric 17% to 1, Cities Service 1% to 1%, Creole Petroleum 103 4 to 103/8, Duke Power 42 to 407%, Electric Bond & Share 13 to 11, Gulf Oil of Pennsylvania 563/i to 543/3, Humble Oil 102 to 997%, International Petroleum 19% to 197%,New York Tel. pref. 116 to 1147%, Niagara 4,Parker Rust Proof 55% to 547%, Hudson Power 53% to 43 4 to 25, Standard Oil of Indiana 32% to A. 0. Smith 263 4to 5 United 32%,Swift& Co. 14 to 13%, Teck Hughes 53 3 to %, United Gas Corp. 234 to 13/8, United Founders 4 Light & Power A 23/2 to 1% and Utility Power % to 3A• DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE. Bonds (Par Value). Stocks (Number Week Ended of Foreign Foreign Dec. 22 1933. Shares). Domestic. Government. Corporate. Total. 138,218 $1.392,000 $89,000 279,000 $1,560,000 Saturday 124,000 2,838,000 282,700 2,568,000 146,000 Monday 255,648 2,736.000 98,000 158,000 2,992,000 Tuesday 389,040 2,833.000 89.000 107,000 3,029,000 Wednesday 251,793 2,972,000 238,000 111,000 3,321,000 Thursday 2,767,000 457,074 74.000 64,000 2,905,000 Friday 1,774,473 $15,268,000 $734,000 $643.000 $16,645,000 Total Jan. 1 to Dec. 22. Week Ended Dec. 22. Sales at New York Curb 1932. 1933. 1933. 1932. Exchange. 98.848,322 55,541,322 Stocks-No,of shares_ 1,774,473 1,015,447 Bonds. $15,268,000 $18,798,000 $848.804,000 $840,903,100 Domestic 756,000 41,747,000 32,069,000 734,000 Foreign government.. 39,972,000 58,335,000 643,000 1,089,000 Foreign corporate.... $16,645,000 $20,643,000 $930,523,000 $931,307,100 Total 4483 PRICES ON PARIS BOURSE. Quotations of representative stocks on the Paris Bourse as received by cable each day of the past week have been as follows: Dec. 16 Dec. 18 Dec. 19 Dec. 20 Dec. 21 Dec. 22 1933. 1933. 1933. 1933. 1933. 1933. Francs. Francs. Francs. Francs. Francs. Francs. 11,400 11,500 11,300 11,400 11,500 11,400 Bank of France 1,449 1,450 1,440 1,460 1,480 1,480 Banque de Paris et Pays Ban 211 251 254 251 226 Banque d'Union Parisienne 220 220 220 223 221 220 Canadian Pacific 19,680 19,740 19,725 19,875 19,910 __Canal de Suez 2,500 2,490 2,525 2,535 2,580 Cie Distr d'Electricitie 2,040 2,050 2,090 2.100 2,070 2:03K) Cie Generale d'Electricitle 38 38 as Cie Generale Transatlantlque 491 -45E -Eno ---490 490 Citroen B Comptalr Nationale d'Escompte 1,035 1,020 1,020 1,020 1,020 1:13i5 190 190 198 190 190 200 Coty Inc 314 311 312 ...316 314 Courrieree 730 740 739 737 Credit Commercial de France... 738 4,660 4,670 4,660 4,660 4,730 4-,766 Credit Foncier de France 2,100 2,100 2,090 2,100 2,110 2,110 Credit Lyonnais 2,580 Distribution d'Electricitie Is Par 2,480 2,490 2,510 2,530 2,730 2,600 2,730 2,740 2,730 2,730 2,790 Eaux Lyonnais 705 710 710 706 710 Energie Electrtque du Nord 1340 935 930 937 Energie Electrique du Littoral- 945 33 36 --ii 38 36 38 French Line 87 87 88 87 89 88 Galeries Lafayette 1,010 1,010 1,010 1,010 1,010 1.010 Gas le Bon 640 640 640 633 630 670 Kuhlmann 760 760 760 750 750 753 L'Air Liquid° 887 875 880 878 878 Lyon (P L M) 310 -aili 310 310 310 310 Mines de Courrieres 410 410 410 410 410 410 Mines des Lens 1,284 1,260 1,260 1,260 1,200 1.270 Nord Ry 830 812 816 820 826 Orleans Ry 860 850 l'isti 870 870 850 Paris, France 66 66 66 65 66 Pathe Capital 1,105 1.110 1.110 1,120 1,130 1:130 Pechiney 67.05 67.10 66.90 86.70 66.80 67.10 Reales 3% 106.15 106.20 106.10 106.00 106.30 106.20 Renton 5% 1920 76.70 76.60 76.30 76.20 76.40 76.40 Renton 4% 1917 83.55 83.60 83.40 83.30 83.70 83.90 Rental 44% 1932 A 1,780 1.780 1,780 1,800 1,800 1,810 Royal Dutch 1,285 1,260 1,245 1,280 1,300 .... Saint Gobain C & C 1,605 1,605 1.600 1,577 1,561 Schneider & Cie 460 490 500 -560 480 490 Societe Andre Citroen 60 61 61 61 59 57 Societe Francais° Ford 105 103 102 105 103 106 Societe Generale Fonciere Societe Lyonnais° 2,760 2,740 2,760 2.780 2,790 ...529 530 531 525 Societe MarseMaise 526 Suez 19,700 19,700 19,700 19,800 19,900 19:5156 155 158 150 152 Tubize Artificial Silk pre! 151 800 800 810 -iiii Union d'Electricitie 800 806 170 --160 170 170 Union des Mines 170 es 96 96 96 wagon-Lila 96 THE BERLIN STOCK EXCHANGE. Closing prices of representative stocks as received by cable each day of the past week have been as follows: Dec. Dec. Dec. Dec. Dec. Dec. 16. 18. 19. 20. 21. 22. Per Celli ofPar162 161 159 156 159 160 Reichnbank (12%) 84 84 84 84 84 84 Berliner Handels-Geselischaft (5%) 42 42 41 40 40 40 Commerz-und Privat Bank A Ci Deutsche Bank nod Disconto-Gesellschatt 49 49 48 47 48 48 Dresdner Bank 55 54 54 54 54 55 Deutsche Reichsbahn(Ger Rys)prof(7%)_107 107 106 106 107 107 Aligemeine Elektrizitaets-Gesell(A HG)..... 24 23 23 23 23 23 116 115 115 114 115 116 Berliner Kraft u Licht(10%) 109 109 109 108 109 111 Des.sauer Gas (7%) 82 83 82 81 82 84 Gesfuerel(5%) 103 103 103 102 102 104 Hamburg Elektr-Werke (8%) 142 140 141 139 140 140 Siemens & Halske(7%) 123 120 121 121 123 123 13 Farbenindustrie(7%) 149 147150 150 148 Salzdetturth(74%) 195 193 iii 193 194 193 Rheinische Braunkohle (12%) 101 100 100 101 102 103 Deutsches Erdoel(4%) 60 58 59 59 61 60 Mannesmann Roehren 26 25 24 24 24 24 HaPaiT 28 27 26 26 28 27 Norddeutscher Lloydx New shares. In the following we also give New York quotations for German and other foreign unlisted dollar bonds as of Dec. 22 1933: Bid As* /34d Ask -84 Hungarian defaulted conDe 08 ,(81 Anhalt 78t0 1948 Hungarian Ital Bk 732s.'32 f73 Argentine 5%. 1945, 8100 18 WJugoslavia 5s, 1956 74 pieces. /44 47 Antioquia 8%, 1946 f24 27 Kobolyt 64s, 1943 AustrianDefaultedCouponn f100 _ __ _ Land M Bk, Warsaw 88,'41 60 65 Bank of Colombia,7%,'47 j14 18 Leipzig Oland Pr.64s.'46 159 63 Bank of Colombia,7%,'48 /14 18 Leipzig Trade Fair 75, 1953 13212 3412 141 45 Luneberg Power, Light & Bavaria 6325 to 1945 161 84 Water 7%, 1948 Bavarian Palatinate Cons. & Paiat 7s. 1941 150 54 Cit. 7% to 1945 /28 31 Mannheim to /43 45 Bogota(Colombia)64,'47 122 24 Munich 75 1945 8 Munic Lik, Hessen,7s to'45 f31 35 /5 Bolivia 6%,1940 Buenos Aires scrip 110 20 Municipal Gas dr Elec Corp Recklinghausen, 78. 1947 /41 43 Brandenburg Elec. 88, 1953 148 50 Brazil funding 5%.'31-51 3412 36 Nassau Landbank 6345.'38 /47 51 Natl. Bank Panama 612% British Hungarian Bank 13912 411 / 4 1946-9 732e. 1962 /52 55 Nat Central Savings Bk of Brown Coal Ind. Corp. Hungary 732s, 1982._ fa 58 632s, 1953 162 65 Call (Colombia) 7%, 1947 /1312 15% National Hungarian & Ind. /47 50 6 Mtge.7%,1948 Callao (Peru) 7.34%, 1944 f 3 Ceara (Brazil) 8%. 1947._ f 3 7 Oberpfalz Elec.7%,1946_ /35 40 Columbia scrip 10 Oldenburg-Free State 7% 1 5 /31 35 Costa Rica funding 5%.'51 138 to 1945 20 --__ Porto Alegre 7%. 1968._ -- 118 Costa Ricascrip 138 Protestant Church (GerCity Savings Bank. Budaf40 43 pest, 78, 1953 /4012 4212 many). 78. 1946 Deutsche Bk 6% '32 unst'd /73 ____ Prov Bk Westphalia Se,'33 155 59 Dortmund Mun UM 6s.'48 141 43 Prov 13k Westphalia 6s,'36 155 59 Duisberg 7% to 1945 127 30 Rhine Westph Eiec 7%.'36 156 59 Duesseldorf 7s to 1945 119 21 32 Rio de Janeiro 6%, 1933 128 East Prussian Pr. 88, 1953_ /43 45 Rom Cath Church 64s.'46 /60 63 European Mortgage & InR C Church Welfare 7s,'46 137 39 vestment 74s, 1966 f46 48 Saarbruecken M Bk fle.'47 /70 75 French Govt. 54s, 1937_ 145 155 Salvador 7%, 1957 /1712 19 French Nat. Mail SS.68.'52 125 130 Santa Cathttrina (Brazil). Frankfurt 7s to 1945 8%. 1947 32 f28 /20 21 German Afi Cable 75, 1945 /47 50 Santander(Colom)7s. 1948 f 8 10 German Building & LandSao Paulo (Brazil) 6s, 1947 /18 20 bank 64%,1948 /36 40 Saxon Pub. Works 5%.'32 f35 -German defaulted coupons_ /70 73 Saxon State Mtge. 68, 1947 /57 80 Haiti 6% 1953 65 75 stem ac Bala° deb 6s,2930 /250 270 Hamb-Am Line 648 to '40 J70 75 Stettin Pub Util 7s, 1946_ /42 45 Hanover Harz Water Wks. Tucuman City 7s, 1951_ /20 22 8%. 1957 /34 37 Tucuman Prov. 7s, 1950_ 36 39 Housing & Real Imp 78,'46 /37 41 Vesten Elec Ry 78, 1947_ /40 43 /41 44 Hungarian Cent Mut 78.'37 /34 37 Wurtemberg 7s to 1945 Hungarian Discount & Exchange Bank 7s„ 1963... /30 32 I Flat price. 4484 Financial Chronicle THE ENGLISH GOLD AND SILVER MARKETS. We reprint the following from the weekly circular of Samuel Montagu & Co. of London, written under date of Dec. 6 1933: GOLD. The Bank of England gold reserve against notes amounted to £190,638,373 on the 29th ultimo, an increase of £99,939 as compared with the previous Wednesday. Large amounts of gold were offered in the open market and were eagerly taken for the usual quarters. Quotations during the week: In London In New York Per Fine Equivalent Value per Ounce. of E Sterling. Fine Ounce. Nov.30 125s. 1%d. Holiday. 13s. 6.954. Dec. 1 125s. 24. 13s. 6.89d. $34.01 Dec. 2 124s. 11%d. 34.01 13s. 7.17d. Dec. 4 124s. 84. 34.01 13s. 7.554. Dec. 5 125s. 6d. 135. 6.46d. 34.01 Dec. 6 126s. 11d. 13s. 4.65d. 34.01 Average 1255. 4.67d. 34.01 135. 6.61d. The following were the United Kingdom imports and exports of gold registered from mid-day on the 27th ultimo to mid-day on the 4th instant: Imports. Exports. Netherlands £714.347 Netherlands £1,385 Belgium 57.617 Belgium 2,000 France 3,476.714 France 18.259 United State;of America- 466.346 Switzerland 9,542 Cuba 18,322 Other countries 1,995 Venezuela 25.660 Canada 305.750 Peru 80.749 British South Africa 121,261 British West Africa 78.988 British India 1,129.621 British Malaya 21.996 Australia 21,306 New Zealand 21,465 Jamaica & Dependencies_ 22.788 Other countries 23.742 £6,586,672 £33,181 Only a small shipment of gold was made from Bombay last week; the SS. Comorin which sailed on the 2d instant carries £82,000 consigned to London. SILVER. The market has shown a firmer tendency during the past week, in sympathy with an improvement in the China exchanges which was followed by some buying from that quarter. The Indian Bazaars have not been active, but there has been some reselling by speculators at the higher level and the Continent has also sold although offerings on the whole were moderate. Fluctuations in the dollar exchange again restricted business with America. nevertheless New York has been a buyer without, however, being digosp3.d to press the market unduly. he were the United Kingdom imports and exports.of silver registered from mid-day on the 27th ultimo, to mid-day on the 4th instant: Imports. Exports.111bsit Soviet Union (Russia) £19.900 Denmark £ 1,950 Germany 23,900 Norway 1.380 Netherlands 22,564 Belgium 92.275 Belgium 12.786 United States of America 123,785 Japan 11,752 Palestine 22,971 British West Africa 2,982 British India 7,310 Canada 15.356 Straits Settlement 2.050 Australia 15.354 New Zealand 86,543 New Zealand 1.737 French Possessions in India 8,100 Other countries 2,640 Other countries 4,747 E128,951 £351,111 Quotations during the week: IN LONDON. IN NEW YORK. -Bar Silver per Oz.Std.Cash 2 Mos. (Per Ounce .999 Fine.) Delivery. Delivery. ffss4'"' Psi Nov.30 18%cl. 187-164.Nov.29 43 9-I8c. Dec. 1 18 7-16d. 187-164. Nov.30 Holiday Dec. 2 189-16d. 18%cl. 437 c. Dec 1 Dec. 4 l89-16d. 18%cl. Dec 2 43 c. Dec. 5 189-16d. 18%d. Dec 4 43 c. Dec. 6 18d. 1811-16d. Dec 5 44%c. Average 18.521d. 18.573d. :The highest rate of exchange on:New York recorded during the period frO/Tinc7 , 730 CO-Dec. 6' was $5:26 and the-lowest $5.0235: INDIAN CURRENCY RETURNS. (In Lacs of Rupees.) Nov.30. Nov. 22. Nov. 15. Notes in circulation 17,964 17,946 17.949 Silver coin and bullion in India 10.327 10.309 10.311 Gold coin and bullion in India 3,024 3,005 2.995 Securities (Indian Government) 4,613 4,832 4,643 Thestocks in Shanghai on the 2d instant consisted of about 158.200,090 ounces in sYcee7-315.000.000 clonal's and-7.340 silver bars.' compared with about 158,900.000 ounces in sycee, 310,000.000 dollars and 8,740 silver bars on the 25th ultimo. Statistics for the month of November last are appended: Bar Silver Bar Gold Cash 2 Mos. Per Delivery. Delivery. Fine Ounce. . Highest price 1854d. 18%d. 133s. 3d. Lowest price 18%d. 18%d. 125s. 1%d. Average 18.4279d. 18.5216d. 1288. 8.87d. We have also received this week the circular written under date of Dec. 17 1933: GOLD. .._The Bank of England gold reserve against notes amounted to £190.: 638.373 on the 6th-init., showing no change as compared with theprevious Wednesday. In the open market the amounts of gold on offer were readily taken for the usual quarters. As supplies were on rather a largo scale, a tendency to ease was shown in the premium, which, however, averaged 7d. during the week. Quotations during the week: IN LONDON. IN NEW YORK. Per Fine Equivalent Value Per Fine Ounce. of E Sterling. Ounce. Dec. 7 126s. (Id. 138 5.82d. 234.01 Dec. 8 126s. 9d. 13s. 4.888. $34.01 Dec. 9 126s. 6d. 135. 5.186. 234.01 Dec. 11 1278. Od. 13s. 4.544. $34.01 Dec. 12 126s. 4lid. 13s. 5.344. $34.01 Dec. 13 126s. id. 135. 5.71d. $34.01 Average 1265. 5.42d. 13s. 5.24d. $34.01 The following were the United Kingdom imports and exports of gold registered from mid-day on the 4th inst. to mid-day on the llth inst.: Dec. 23 1933 Imports. Exports. Netherlands £523,541 France France 759.823 Austria Switzerland 13,616 Switzerland United States of America 249,134 Morocco Canada 303,528 Mexico British South Africa 1,500,608 British India British India 219,855 Other countries 'British Malaya 12,092 Hongkong 241.605 China 252,945 Australia 59,786 New 7ealand 22,936 Jamaica & Dependencies33.852 Other countries 40,527 £33,230 10,085 3,225 3,080 37,841 10,175. 2,420 £100.056 £4,233,848 Gold shipments from Bombay last week amounted to about £243,000 shipped per SS. Mooltan; of this amount £176,000 is destined for London and £67,000 for Paris. The Transvaal gold output for November 1933 amounted to 898,468 fine ounces. as compared with 908,888 fine ounces for October 1933 and 978,716 fine ounces for November 1932. SILVER. Prices have been fairly well maintained and have shown only small variations-during the past week. A--faif ifaciairof support has-been given by China, whilst the Indian bazaars have been rather more active. making resales as well as some fresh forward purchases. Continental sales were again only moderate. There was some support from New York on some afternoons, although the demand was not particularly pressing, and, towards the end of the week, there was occasionally a tendency to offer from the same quarter. The following were the United Kingdom imports and exports of silver registered from mid-day on the 4th inst. to mid-day on the 11th inst.: Imports. Exports. Germany £193,969 £19,965 Belgium Soviet Union (Russia) 2,144 43,500 Germany Netherlands 10.985 25.335 Syria Belgium 7,702 Persia 16,553 France 6.279 United States of America 4,100 Kenya 33,355 7,657 British India Australia 5,359 15,438 Other countries Mexico 12,012 British India 13,550 Other countries 199 E266,465 £151,637 Quotations during the week: IN LONDON. IN NEW YORK. -BarSilver per Oz.Std.(Per Ounce .999 Fine.) Cash Delia.2Mos.'Delie, Dec. 7---18 11-164. 1811-188. Dec. 6 44 1-16c. Dec. 8---18 9-164. 1834d. Dec 7 44c. Dec. 9..--18%d. 189-164. Dec 8 43 Mc. Dec. 11..-18%d. 18 11-164. Dec 9 443c. Dec. 12-- _1856d. 189-164. Dec. 11 434c. Dec. 13---I8 9-16d. 427 c. 18%cl. Dec. 12 Average---18.573d. 18.6250. The highest rate of exchange on New York recorded during the period from the 7th inst7fe -Fhe 13ih inst. was $5.17 and the lowest $5.02. I INDIAN CURRENCY RETURNS. (In Lacs of Rupees) Nov. 22. Dec. 7. Nov. 30. Notes in circulation 17.946 17,912 17,964 Silver coin and bullion in India 10,309 10.276 10,327 Gold coin and bullion in India 3,039 3,024 3,005 Securities (Indian Government) 4,632 4,597 4,613 L .Thrst,(7)cks in Shanghai on thr9th inst. consisted of abour157,200.4 000 ounces liksycee,315 000,000 dollars and.9,200 conipared Nvi.tli .siiver bars;as . about 158.200,000 otinCeslx -i-sycee, 315.000,000 dollars and 9:340 silver bars on the 2d inst. • 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.. Mon.. Tues.. Wed., Thurs., Fri.. Dee, 16, Dec. 18. Dec. 19. Dec. 20. Dec. 21. Dec. 22. Silver, per oz.... 185,6d. 18t4d. 181td. 18 9-16d. 18 9-164, 19 1-16E Gold,p.tine oz. 1266.44. 1268.94. 126s.9d1265.94.-126s.2d. 1265.3d. Consols, 214% 74 7434 74 74 74 74 British 334%W.L. ' 10034 101 101 101 10134 10134 nrittsh 4%111 1960-90 11134 11114 11134 11131 11111 French Rentea (In Parts)3% fr. 66.80 67.10 66.90 67.10 66.70 66.80 French War L'n (In Paris)5% 1920 mon_ _ 106.00 106.20 106.10 106.20 106.00 106.30 The price of silver in New York on the same days has been: Silver In N. Y., per oz. (eta.) 4334 4334 4334 43 43 44% Colutmercialiand Wsceitantottsnews National Banks.-The following information regarding National banks is from the office of the Comptroller of,the Currency, Treasury Department: - CHARTERS ISSUED. Ca al. Dec. 9-Blairsville National Bank. Blairsville. Pa $100,000 Capital stock consists of $50,000 common stock and $50,000 preferred stock. President. H. P. Rhoads; Cashier, H. B. Baker. Will succeed No. 4919, The Blairsville National Bank. Dec. 9-First National Bank in Finleyville, Flnleyville. Pa 50.000. President, Frank H. Finley; Cashier, R. F. Sprowles. Will succeed No. 6420. The First National Bank of Finleyville. Dec. •9-The Union National Bank of Ashland, Ashland, Wis.... 100,000 Capital stock consists of $50,000 common stock and $50,000 preferred stock. President, Felix Penn: Cashier, G. A. Carlson. Will succeed No. 3196, The Ashland National Bank, and No. 3607, The Northern National Bank of Ashland. Dec. 11-First National Bank at Albion, Albion, Pa 50,000 Capital stock consists of $25,000 common stock and $25,000 preferred stock. President, H. S. Dershimer; Cashier, Charles C. Ringler. Will succeed No.9534,The First National Bank of Albion. Financial Chronicle Volume 137 Capital Dec. 11-The•National Bank & Trust Co. of Sycamore, Sycamore, Ill $100,000 President, Jane W. Dutton; Cashier, Arthur L. Stark. Conversion of The First Trust & Savings Bank of Sycamore. Dec. 12-The Union _National Bank of Waynesburg. Waynesburg, Pa 200.000 President, H. D. Freeland; Cashier, Chas. T. Strosnider. Will succeed The Union Trust Co. of Waynesburg. Dec. 14-The National Bank of Wyandotte, Wyandotte, Mich 150,000 Capital stock consists of $100,000 common stock and $50,000 preferred stook. President, Charles A. Brethen; Cashier, Hays Metcalf. Will succeed No. 12616, The First National Bank of Wyandotte, and The peoples Wayne County Bank of Wyandotte. Dec. 15-The National Commercial Bank of Liberty, Liberty, Mo. 100,000 President, Frank Hughes; Cashier, Lewis B. Dougherty Jr. Conversion of The Commercial Bank of Liberty, Mo. Dec. 15-National Spraker Bank in Canajoharie, Canajoharie, N.Y 125,000 Capital stock consists of $75,000 common stock and $50,000 preferred stock. President, John R. Beach; Cashier, H. J. Marshall. Will succeed No. 1257, The National Spraker Bank of Canajoharie, N. Y. Dec. 15-Oilfields National Bank in Brea, Brea, Calif 50,000 Capital stock consists of $25,000 common stock and $25,000 preferred stock. President, J. B. Reilly; Cashier, M. G. McMahon. Will succeed No. 13001, The Oilfields National Bank of Brea. VOLUNTARY LIQUIDATIONS. -The Rockville National Bank, Rockville, Conn 13 Dec. $100,000 Effective close of business Dec. 12 1933. Liq. agent, Charles M. Squires, Rockville, Conn. Absorbed by The Hartford-Connecticut Trust Co., Hartford, Conn. Dec. 13-The Lewiston National Bank, Lewiston, Idaho 100.000 Effective Dec. 4 1933. Lig. agent, Arnold P. Hendell, care of the liq. bank. Succeeded by "Lewiston National Bank," Lewiston. Idaho, Charter No. 13819. CONSOLIDATION. Dec. 9-Hartford National Bank & Trust Co., Hartford, Conn_$4,000.000 The Bankers Trust Co., Hartford, Conn 250,000 Consolidated to-day under the provisions of the Act of Nov. 7 1948, as amended Feb. 25 1927 and June 16 1933. under the charter and title of "Ilartford National Bank & Trust Co.," No. 1338, with capital stock of $4,000,000; no surplus. CHANGE IN TITLE. . N.Dakota. Dec. 5-First National Bank & Trust Co.in Minot, to "First National Bank in Minot.' BRANCHES AUTHORIZED. Dec. 1-The National Bank of Commerce of Seattle, Wash. Location of branches: Montesano, Grays Harbor County; Elma. Grays Harbor County. Certificates Nos. 930A. and 931A. The above branches are located in the State of Washington. Dec. 1-The First National Bank of Lewiston. Me. Location of branch: 69 Court St.. Auburn, Androscoggin County. Me. Certificate No. 932A. Dec. 9-Hartford National Bank & Trust Co., Hartford, Conn. Location of branch: Northwest corner of Farmington Ave. and Asylum Pl., Hartford, Conn. Certificate No. 933A. Dec. 11-The Citizens National Trust & Savings Bank of Riverside, Calif. Location of branch: City of Hemet, Riverside County. Calif. Certificate No. 934A. Dec. 14-The Peoples National Bank of Charlottesville, Va. Location of branch: University Corner Building, University of Virginia, Charlottesville, Va. Certificate No, 935A, Montreal Stock Exchange.-Record of transactions at the Montreal Stock Exchange, Dec. 16 to Dec. 22, both inclusive, compiled from official sales lists: Stocks- Friday Sales Last Week's Range for Sale of Prices. Week. Par Price. Low. High. Shares. Agnew Surpass Shoe pret.• * Alberta Pan Grain A Bathurst Pow & Paper A_• Bell Telephone 100 11034 Brazilian T L & P • 11 B C Packers • 231 Brit Col Pow Corp A.__ 0 2234 B • 434 Bruck Silk Mills • 16 • Building Products A • Canada Cement Preferred 100 32 Can North Power Corp.... 17 Canada Steamship • 600 Preferred 100 Can Wire & Cable class A_• • Canadian Bronze s 6 Can Car & Foundry 25 12 Preferred • 1631 Canadian Celanese 100 Preferred 7% Canadian Converters. _100 Canadian Cottons 100 100 I'referred Can Ilydro-Eiec pref_ _ _100 54H Can Industrial Alcohol_ _* 183.4 • 1734 Class B 25 1234 Call Pacific Ry • 7% Cockshutt Plow Con Mining & Smeiting_25 133 • 26 Dominion Bridge Dominion Coal pref. --100 100 Dominion Glass 134 25 Can Steel & Coal B • Canadian Textile • 4 Dryden Paper Famous Players C Cori) • • Voting trust Foundation Co of Canada• 10 • 23, 4 General Steel Wares Goodyr T pref Inc 1927-100 105 635 • Gurd (Charles) 4 Gypsum Lime dr Alabas * * Hamilton Bridge Hollinger Gold Idines____5 10.80 lot Nickel of Canada_._ _• 21.60 Internatl l'ower pref_ _100 Jamaica PS Co Ltd pre(100 •11% Lake of the Woods • Lindsay(C W) 100 Preferred * 434 -Harris Massey McColl-Frontenac Oil.._ _• 1031 Montreal Cottons pref_100 Mont L H & Pow Cons...* 3334 Mont Loan dr Mortgage-25 Montreal Tramways--100 • 2331 National Breweries 25 31 Preferred Nr..1 fat.al Oar rnrtl . z 614 33 60 50 3 3 3 25 3 465 111)3111434 11 1131 4,225 820 231 234 22 22% 180 4% 431 1,810 1531 17 1,056 65 163.4 163.4 395 634 731 32 33 180 16 17 465 60e 600 110 23.4 231 50 21% 2134 10 15 17 60 43.4 634 2,980 1,646 1034 12 135 163.4 18 103 105 27 5 293.4 2934 41 43 30 70 70 5 54 199 553.4 173.4 2034 37,504 1634 1834 11.181 2,055 1234 13 734 435 73i 126 134 1,794 2334 263,4 2,875 8 8 26 83 83 15 134 134 744 62H 63 50 4 4H 90 9 9 5 9 10 30 10 170 10 234 3 115 105 105 20 220 634 7 334 434 360 112 54 534 10.60 11.30 1,470 20.9022.00 12,665 145 15 15 25 98 98 1134 1131 480 5 2% 2H 35 35 8 431 434 595 824 1034 11 182 62 62 2.899 33 34 25 45 45 59 110 110 1,522 2334 2431 90 3031 31 135 1211 13 Range Since Jan. 1. Low. 60 24 1 80 731 1 14 3 3 1034 23g 13 12 500 2 20 8 3 9 6H 7134 15 193.4 47 36 134 1 9 3 543g 1334 5 37 500 40 750 4 8 5 70o 98 4 134 234 6.10 834 10 78 5 2 25 234 734 50 2634 40 70 1431 2734 534 High. Dec 56 Sept Oct 10 June Jan 8 June Feb 12034 July Feb 1831 July Jan 8 July Feb 2731 July Jan 831 July Mar 24 Sept Mar 19)4 July Jan 103.4 July Apr 35 July Feb 18 Nov Dec 334 July Feb 94 May Dec 30 July Jan 25 July Apr 1131 July Nov 1934 July Mar 2834 Sept Mar 112 Sept Apr 35 July May 49 Aug Jan 75 Aug Feb634 July Jan 40 July Jan 39 July Apr21% July Jan 1454 June Feb 14334 Sept Feb 34 July June 10 July Apr 90 May Feb 6 July Apr 69% July Feb 734 Aug Mar 1034 June May 10 July May 1034 Oct Jan 6 July May 108 July Mar 163-1 July Mar 73.4 July Jan 1134 July Jan 12.40 Dec Feb 22.75 July May 23 July May 98 Dec Feb 18H July May 7 July Mar 36 Dec Feb 12 June Feb 15 July May 85 Aug Apr 4231 July Sept 45 Dee Apr 110 Noi Feb 2934 Jul3 Jan 32 00 Feb 1834 Jul3 4485 Friday Sales Last Week's Range for of Prices Sale Week. Stocks (Continued) Par Price. Low. High. Shares. Ogilvie Flour Mills Preferred 100 Penmans • Power Corp of Canada_ __• Quebec Power • St Lawrence Corp • A preferred 50 St Lawrence Paper prof 100 Shawinigan Wat & Pow... Sherwin Williams of Can.* Preferred 100 Simon (H)& Sons Southern Can Power • Steel Co of Canada • Preferred 25 Tuckett Tobacco pref._100 Vise Biscuit • Windsor Hotel pref_ _100 Winnipeg Electric • Preferred 100 Ban ksCanadienne 100 Commerce 100 Montreal 100 Nova Scotia 100 Royal 100 176 125 754 15 1634 55 3034 2,3.5 176 125 47 7% 1334 154 4% 9 16% 1134 50 6 1034 2734 30."5 116 2H 6 13g 4 176 125 47 8 15 2 5 11 17 1114 55 6 1134 28 3055 116 2% 5 134 4 140 140 140 128 135 128 185% 16334 171 267 270 12734 127H 133 Range Since Jan. 1. Low. 15 100 40 112 56 24 525 6 480 11 725 15c 210 1 471 234 2,203 9% 220 4 60 39 4 50 458 10 125 1434 36 25 1 1083.4 810 2 5 5 10 13g 20 31.4 23 97 274 42 313 127% 119 150 230 124 High. Feb 210 Apr 125 Mar 47 Jan 15% July 24 Mar 5 Feb 1234 Jan 25 Feb 22% Mar 18 Apr 70 May 834 Dec 1934 Feb 32 Feb 3334 Apr 120 Mar 7 Oct 5 Nov 5 Apr 10 July Dec July July July July July July July July May June Aug July July Nov June Oct July July Apr Apr Apr May Apr Aug July July Nov July 155 176 221 285 183 • No par value. Montreal Curb Market.-Record of transactions at the Montreal Curb Exchange, Dec. 16 to Dec.22, both inclusive, compiled from official sales lists: Stocks- Friday Sales Last Week's Range for of Prices. Sale Week. Par Price. Low. High. Shares. Asso Breweries of Can_ * Asso Oil & Gas Co Ltd.._* 21c Bathurst P & Paper B _ • Brit Amer Oil Co 1334 Can Foreign Invest Corp_* Canadian Vickers Ltd Canadian Wineries Ltd__ * Cateill Macaroni Prods B.* Commercial Alcohols Ltd • 334 CosgraveExpBrewCoLtd10 534 Distil Corp Seagrams Ltd • 22 Dominion Stores Ltd • Dom Tar & Chem Co Ltd * Home Oil Co Ltd • 1.53 Imperial Oil Ltd • 12.75 Imp'l Tob Co of Can Ltd _5 10% Inter City Bak Co Ltd.I00 Intl Petroleum Co Ltd._..* 19"4 MelchersDIstIllers Ltd A_• 1034 Page-Hersey Tubes Ltd. • Regent Knitting Mills Ltd* Reliance Grain Co Ltd_ __• Thrift Stores Ltd • Cum pref 6H%. 25 Walkerville Brewery Ltd_• Walker Goodhm & Worts_• Preferred • 6 3.80 47H 1634 10 21c 1.50 1331 9 3 7% 1.75 3 5 21 21% 2 1.53 12% 1034 17 19% 10 6.H 6034 2 6 11 243.4 3.80 43% 1534 10 21c 2 1331 9 3 834 1.75 334 534 2335 22 2 1.62 13 10% 17 20 10% 7 6034 2 6 11% 25 4.0 47% 16.14 125 1,200 5 1,185 50 55 510 10 115 225 7,122 10 35 78( 2,634 801 50 1,904 1,728 280 55 165 5 195 25 2,807 4,237 1,816 Range Since Jan. 1. Low. 3% 50 1 7)4 2 1.00 1% 1.50 50c 1H 4 14 1 350 7% 734 17 10H 5% 6 Mar Jan Nov Jan May Jan Jan June Ma Jan Ma Feb M Mar Apr Feb Sept Feb Oct Oct 4154 Apr 500 Mar 5 Sept 7% May 21 May 3.25 Nov 4 Mar 9% Jan High. 15 1.10 2 16 9% 3 8% 2 July July July July July May Dec June July 71g July 5234 July 2634 July 531 July 4.15 July 16 July 11% Nov 18 Dec 22% Nov 27 July 14 July 70% July 5% July 6 June 14 July 30 July 4.10 Dec 68 July 18 July Public Utility. Beauharnois Pow Corp_ _ • 3% 33.4 3% 2,641 33i Oct 834 July C North P Corp Ltd pf 100 90 32 71% Feb 9334 Nov 90 9034 City Gas & Elea Corp Ltd * 8;g Dec 1234 Nov 100 835 9% Hydro-Elec Sec Corp..' 6 6 6 Dec 10 50 July Inter Utilities Corp Cl B..1 55c 556 750 935 550 Dec 43.4 July PowerCorpofCancumpf 100 52 50 60 27 May 62 5234 July Sou Can P Co Ltd pref _100 7354 73.14 75 104 70 Feb 83 J11.19 Mining. Base Metals Min Corp Ltd* 1.45 1.55 1.55 1.45 Dec 400 2.20 Oct Big MissouriMinesCorp_l 35c 330 3534 3,250 330 Oct 48c Nov Bulolo Gold Dredg Ltd _ __5 22 473 15.50 July 24.60 Nov 21.75 22.05 Cartier-Malartic G M Ltd 1 10 lo 1H 6,000 10 Mar 3% Jan Castle-TretheweyM Ltd.1 610 61e 6634 2,200 200 Mar 6634 Dec DomeiMines Ltd * 32 260 14.LO Jan 39.75 Sept 3131 32 FalconbridgeNickelM Ltd* 3.15 3.25 200 4.55 July 1.95 Feb Lake Shore Mines Ltd_ __1 42% 44 552 30.75 Mar 52.00 Oct Lebel Oro Mines Ltd 1 2,000 934 Dec 9%0 110 156 Oct Lee Gold Mines Ltd 1 500 1134 Dec 28% June 1134 1134 Mamma Mines Ltd 1 81c 83o 2,100 240 Jan 1.29 Oct McIntyre-Porcupine Ltd_5 2634 3634 20 21.75 Mar 48.00 Nov Noranda Mines Ltd • 33.50 32.90 34.10 1,089 19.75 Jan 39.25 Sept Slscoe Gold Mines Ltd _ 1.45 j 1.43 1.50 5.255 1.25 Jan 1.75 Feb Sullivan Gold Mines Ltd_ 1 25c ' 250 270 23,300 14e Sept 38)40 Feb WaysIdeConGoldMLtd 500 420 36340 44e 12,500 3530 Nov 700 July Wright Hargreaves M Ltd* 6.40 6.50 17 3.75 Jan 8.50 Sept Unlisted Mines. Central Patricia G Mines 1 1,00 47Sia 490 183gc Apr 71c Sept Eldorado Gold Mines Ltd 1 3.25 4.00 2.80 90 1.20 Mar 8.10 July Granada Gold Mines Ltd_l 550 55e 100 550 Dec 1.90 Feb McVittie Graham NI Ltd 1 1.19 1.06 1.19 5,35 190 Jan 1.19 Dec Parkhill Gold Mines Ltd__1 356 42%0 13,150 110 Jell 48c Oct San Antonio G Mines Ltd 1 1.70 1.50 1.70 5,834 860 Jan 1.70 Be, Sherrit-Gordon Mines Ltd 1 91e 910 300 393gc Jan 1.90 July Stadacona Rouyn Mines--• 8Sg c SSic 90 1,800 83,40 Dec 1530 Oct Thomson Cadillac M.Ltd_l 170 180 3,000 4Ha Jan 20340 Nov Unlisted. Abitibi Pow & Paper Co..• 50a 1.2 50o 4,622 15c Ma 334 July Cum pref 6% 100 530 53.4 5% 1 Mar July 9 Brewers &.Distil of Van-• 2.85 2.60 2.8 2,555 1.25 May 3.75 July Brew Corp of Can Ltd__ -• 534 5 5% 979 1 May 12 July Preferred 143,4 1534 17% July 126 8% Jul Canada Malting Co Ltd-• 27 25% 27 505 13% Mar 40 May Canada Bud Breweries. • 215 655 7)4 July 534 Apr 16 Claude Neon Gen Ad Ltd * 350 35c 500 800 20, Ma 1.60 May Conso I Paper Corp Ltd_ • 1.75 2.0 1.70 Jun 682 6% July Dominion Motors Ltd_ __1C 13"g 14Y 192 1 Dec 1434 14 Dec Loblaw Grocet Co Ltd A_• 143g 14% 40 11 Feb 1934 July Price Bros Co Ltd 100 1.00 50c 1.2 2.155 400 Oct 334 July Preferred 100 4% 8 155 2% Nov 8 July •No par value. Auction Sales.-Among other securities, the following, not actually dealt in at the Stock Exchange, were sold at auction in New York,Jersey City, Boston, Philadelphia and Buffalo on Wednesday of this week: By Adrian H. Muller & Son, New York: 5P.4‘. Shares. per Share. 4 The Bucyrus Telephone Co. (Ohio). par $100 $51 lot 200 The Jennings Telephone Co. (Ohio). Par $50; 65 The Johnston Citizens Telephone Co. (Ohio). par $25; 350 The Mesopotamia Telephone Co. (Ohio), par $10 $35 lot 30 Westchester-Oakley Corp. (N. Y.), preferred, par $100; 30 WestchesterOakley Corp.(N. Y.). common, no par $5 lot 1 Rockwood Hall, Inc.(N. Y.), no par $10 lot 351 American Certificates representing deposited participating debentures of Kreuger & Toll Co $2 lot 500 Rhoades Kennedy Stevens Corp.(N.Y.), preferred, par $100;250 Rhoades Kennedy Stevens Corp.(N. Y.). common,no par $50 lot 4486 Financial Chronicle $ per Share. Stocks. Shares. 20 Corporation Securities Co. of Chicago (III.), common, no par; 360-200ths Corporation Securities Co. of Chicago (Ill.), common, scrip no par; 20 Corporation Securities Co. of Chicago (Ill.), $3 preferred, optional series of $2 lot 1929, no par 377 E. H. Rollins & Sons (United Associates Incorporated) (Me.), common, no par; 1,000 Cordoba Copper Co., Ltd. (Eng.). Par 2 shillings; 10 Wing$5 lot wood Realty Corp. (N. Y.), par 5100 $5 lot 50 Kings Highway Development Co.. Inc. (N. Y.). par $100 55 lot 85 Kings Highway Development Co., Inc. (N. Y.). par $100 $5 lot 50 Kings Highway Development Co., Inc. (N. Y.), par $100 22 Sprague Specialties Co. (Mass.), class B preferred, par $50: $1,113.04 Sprague Specialties Co.. income Certificate of indebtedness, dated Dec. 1 $17 lot 1933 $15 lot 150 Newkroy Corp.(N.Y.), par $5 1,000 American Certificates representing deposited participating debentures of $2 lot Kreuger & Toll Co $21 lot 200 Exchange National Bank of Tulsa. Okla.. par $20 $21 lot 500 Silica Gel Corp.(Md.)common, no par $2 lot 100 National Belles Hess Co.(N. Y.) (old stock), no par 300 Sealed Containers Corp. (Del.), common, no par; 150 Sealed Containers $500 lot Corp. (Del.), preferred, no par All the right, title and interest of seller in and to 78 shares of the capital $78 lot stock of Newson dc Co.(N. V.), par $100 50 World Exchange Bank (N. Y.). par 5100; 5500 Web Holding Corp.(N. Y.), 7% debenture bonds; $2,000 Web Holding Corp. (N. Y.) 7% debenture 550 lot bonds 25 National Radiator (Del.) convertible pref. certificates of deposit, no par_ __$7 lot 100 American Certificates representing deposited participating debentures of $1101 Kreuger & Toll Co 52 lot 1 Ocean Front Realty Corp 1 certificate of proprietary interest in the Seminole Golf Club of Palm Beach, $31 lot Florida $50 lot 572 DeForest Radio Co 100 The Moores-Coney Corp. (Ohio), class A common no par; 50 The MooresConey Corp. (Ohio), class B common, no par; 10 National Pumps Corp. 555 lot (Ohio), common,no par $32 lot 8,248 F. MacGovem Corp.(N. Y.), common, par $10 lot 1,348 Hudson Electric Heating Corp. (N. Y.), common, no par 75 United States Bond &Mortgage Corp.(N. Y.), 7% cumulative preferred, Par 6100; 330 United States Bond Sc Mortgage Corp. (N. Y.), common $100 lot no par $25 lot 42 Island Mortgaging Corp.(N. Y.), class A common, no par 127 Island Mortgaging Corp. (N. Y.), 6% cum. pref., par $100; 334 Island 5200 lot Mortgaging Corp. (N. Y.), class A common, no par 61 Universal Security Corp. (Del.), 7% cum. pref., par $50; 61 Universal $25 lot Security Corp. (Del.), common, par $50 $50 lot 10 716-727 Broadway Corp. (N. Y.), DO Par 20 American Certificates representing deposited participating debentures of $1 lot Kreuger & Toll Co $100 lot 50 Williamsport Wire Rope Co. (Pa.). par $100 60 Public Indemnity Co., Newark, N. J., temporary certificates, par $254-54 lot $1 lot 50 Newport Planing Mill Co. (Pa.). common, no par $2 lot 100 Newport Planing Mill Co.(Pa.), preferred, par $10 $1 lot 25 Venus-Victrix, Inc. (N. Y.), class A. par $100 53 lot 200 E. W. Marland Co., Inc. (Del.), class A. no par 52 lot 2.000 Colombian Oil Concessions, Inc. (Del.), no par Three demand notes dated May 1 1919, Dec. 2 1919 and May 1 1920, for 35 lot 51,500, 5500 and $1,000 respectively 85.000 lot 100 25 Oak Street Corp. (N. Y.), no par 25 Commonwealth Bond Corp. of Del., pref., par $100; 25 common, par $100-$12 lot $2 lot 50 Metropolitan Chain Stores (Del.), 7% cum. pref., par $100 $11 lot 25 U. S. & British International Co., Ltd. (Md.), common, no par 53 lot 50 Independent Bonding Sc Casualty Ins. Co.(N. J.), par $5 $14 lot 25 F. Sc W. Grand (N. Y.). 654% preferred, par $100 $10 lot no par class A, (Del.), 50 Direct Control Sc Valve Co. $2 lot 10 Caracas Sugar Co.(Cuba), par $50 $1 lot 35 Mexican Northern Mining Sc Ry. Co. (Del.), no par 89 lot 200 Studebaker Chemical Corp. (Del.), common. no Par Si lot 200 Kinney Oil Sc Refining Co.(Wyo.), no Par $3 lot 289 Pacific Coast 011 Co.(Del.), common. no Par $12,300 face value of participation certificates in bonds and mortgages of the Asbestos Spinning Sc Weaving Corp.. represented by certificates No. A-1 for $5,000, dated July 24 1929: No. A-11 for $300, dated Dec. 3 1930, and 550 lot No.6 for $7,000, dated July 24 1929 $2 lot 180 The Belot' Paint Co., Inc., common $10 lot 120 The Beloil Paint Co., Inc., preferred $1,075 promissory note made by the Beloil Paint Co.. Inc., dated Feb. 18 $15 lot 1932, payable Nov. 7 1932. Endorsed without recourse $2,000 primissory note made by Belot' Paint Co., Inc.. to the order of the National City Bank of New York, dated May 31 1932. payable June 30 $1 lot 1932, and stamped "received payment" 5125 lot 300 Bertha-Consumers Co. (Pa.). preferred, par $100 52,800,000, aggregating Timken Realty Corp. Three promissory notes of $200 lot payable Dec. 15 1934, without interest A participation certificate, City Real Estate Co., dated July 24 1933, In a certain conditional bill of sale, in the amount of $5,977.48, prin. and int..545 lot A claim against the Coney Island Hotel Corp. and (or) trustees, assignors. committee or committees of stockholders, thereof in the amount of $2 lot $2,241.25 $5 lot 100 Coney Island Hotel Corp., 7% non-cum. pref., par $100 $2 lot 50 Coney Island Hotel Corp.. common, no par $50 lot 250 Union Guarantee Sc Mortgage Co., common, par 525 $5 lot 27 No. 160-04 Jamaica Ave Corp.(N. Y.). no par $15 lot 120 The Liquidometer Corp. (Del.) Class A, no Par $25 lot 52 The First National Bank of Youngstown, Ohio, Par $100 $12 lot 100 The Youngstown Steel Co (Ohio) common. no Par $6 lot 40 Marquette-Easton Finance Corp. (Del.), preferred, par $25 $51 lot 250 Watson Stabilator Co. of New York City, Inc., common, par $1 517 The Industrial Dryer Corp. (Conn.), 1st pref., par $100; 614 2d pref.. $105 I ot Par $100 200 Graham Sc Zenger (N.Y.), class A, no par; 75 Moon Motor Car Co.(Del.). common, no par; 50 National Ice Sc Coal Co. (N. Y.), corn., par $100; 700 National Conduit Sc Cable Co.(N. Y.), no par; 200 Benjamin Winter. Inc. (Del.), pref., no par; 100 Wyoming Petroleum Co., Inc. (Del.), par $1; $150 lot 25 American Writing Paper CO.(N• J.). 7% Pref.. Par MO 500 Insurance Securities Co., Inc. (La.), par $10; 1,000 International Com$15 lot bustion Sc Engineering Corp. (Del.). no Par $2 lot 100 Hartman Corp.(N. Y.), class B common, no Par 64 lot 65 New York State Itmii. pref. par $100 $20,000 certificates representing participating shares in ownership agreement representing $500,000 interest in mortgage on premises 461 Eighth Ave., New York, N. Y., made by Printers Crafts Realty Corp. to New York $40 lot Investors, Inc., warrants 6 to 8 incl., attached $18.000 certificates representing participating shares In ownership agreement representing $500,000 interest in mortgage on premises 461 Eighth Ave., New York, N. Y., made by Printers Crafts Realty Corp. to New York 539 lot Investors, Inc., warrants 6 to 8 incl., attached $4 lot 100 Latherizer Sales Co., Inc. (Del.). no Par 58 lot 22 St. Bernard's Summer Camp $220 lot $3,575 Westchester Country Club 2d mtge. participation certificate lot $201 1 Harrison-Rye Realty Corp 5 42 Henry Malllard. Inc., 7% cum. pref., par $100 1 415 Henry Maillard, Inc., common. no Par 100 Greater New York-Suffolk Title Sc Guarantee Co. (N. Y.) (old stock). 5 par $100 35 Greater New York-Suffolk Title Sc Guarantee Co. (N. Y.), (new stock), 20 Par $100 $21 lot 30 Beabrock Corp.(Ill.), par $100 500 Investors of Washbagton,6% cum. pref. class A, par $100; 500 common, $7,500 lot no par 50 Midland Industrials Corp. (N. Y.), class A common, no par; 50 class B $2 lot common, no par $11 lot 20 Newburg Bleachery (N. Y.), common, par $100 Shot 430 Consolidation Coal Co.. common, par $100 $2 lot 5 Camp Rangers Association (N. J.), par $100 61 lot no Common, Par Insull (Ill.), 41-200 Utility Investments, Inc. 211 28 United Hotels Co. of America (Del.), pref.. par $100; 33 common, no Par $24 lot and 1-3 share scrip 10 New York United Hotels, Inc. (Del.), pref., par $100; 2 com. B (stamped). $7 lot no par $1.752.92 tax lien No. 37162 of the Borough of Brooklyn, issued by the City $100 lot of New York and dated April 27 1930 $6,730.46 tax lien No. 37166 of the Borough of Brooklyn, issued by the City $100 lot of New York and dated April 27 1930 El lot 60 The Remote Control Corp.(N.Y.). common, no par Dec. 23 1933 $ per Share. Shares. Stocks. $3,000 The Remote Control Corp.(N. Y.), 5-year 7% founder's debentures, $3 lot due May 1 1933, par $100 $3101 125 Margery Sweets(N.J.), no par $450 lot 150 Madison Mortgage Corp.(N. Y.), 7% 1st pref., par $100 _ 540 lot 100 Madison Mortgage Corp. (N. Y.), Common. no par $127 lot 60 Booth Fisheries Corp.(Del.), 2d preferred. DO Par $21 lot 68 11-100 Booth Fisheries Corp. (Del.), class A common, no Par $26 lot • 64 6-100 Booth Fisheries Corp (Del.) class B common, no par lot $37 $100 Par 60 New York Realty Sc Improvement Co.. Inc. (N. Y.), Pref., $4 lot 40 Peacock Motion Picture Co., Inc. (Del.). no Par $1 lot 200 International Match Co., partic. preferred Per Cent. Bonds$20,000 Beard's Erie Basin, Inc., 6% purchase money mortgage registered 21% Flat gold bonds. Due March 15 1978 534,000 Charleston-Dunbar Traction Co., 20-year 6% first mortgage gold lot $1,000 bonds. Due Dec. 1 1933 certificates of deposit $7,500 Perfection Mattress Sc Spring Co.(Ala.),7% deb.reg., due Jan. 1 '43_ _531 lot $85101 $250 Lawyers Mortgage 555% certificates due April 15 1934 550,000 Barclay Park Corp. 7% gold notes, due June 1 1940. June 1931 and 513 lot subsequent coupons attached $10,000 Aldecress Corp. 6% income mtge. 25-year gold bonds, registered, due July 1 1953, bearing interest from June 15 1930, stamped; $750 6% income mtge. 25-year gold bonds, registered, due July 1 1953, bearing interest $60 lot from May 29 1931, stamped $900 Montclair Athletic Club 654% bonds, due Dec. 5 1939; November 1933 $105 lot and subsequent coupons attached $35.000 Corporation Securities Co. of Chicago certif, of deposit dated Sept. 1 $45 lot 1930 ($10,000 5% due Sept. 1 1932, 525,000 5% due Sept. 1 1934) 530,000 Grand Rapids Ry. 1st sinking fund 75 due May 1 1939, with November $910 lot 1931 and subsequent coupons attached $5,000 Prudence bonds, 534%, due June 1 1934 (Printers Craft Bldg.)___51.160 lot 5120 lot $525 Madison Mortgage Corp.(N. Y.), 5% dividend scrip $4.000 Chapple Publishing Co., Ltd., 6% 1st mtge, gold bonds, due Dec. 1 $3 lot 1929. December 1928 and subsequent coupons attached By Adrian H. Muller & Son, J3rsey City, N.J. The usual list of auction sales was not available at time of going to press By R. L. Day Sr. Co., Boston: $ per Shares. Shares. Stocks. 25 15 First National Bank, Boston, par 320 125 1 Beverly National Bank, Beverly, par $100 41c 412 Industrial Trust Co. of Ireland, par 1 pd 5 2 Bates Manufacturing Co., par $100 500 100 International Match Corp., pref., par $35 Option A; Corp. Public Utility 77-80 1 Central Public Service Corp. A; 44 warrant for II shares American Sc Dominion Corp. common__ _ ___ ..... 50c $15 lot 115 Galveston Sc Houston Elec. Co., pref. par $100 13101 1,000 International Match Corp., pref., par 35 50c. lot 400 Alaska Mexican Gold Mining Co., par $5 5151ot Mining Co., par $25 7,000 Alaska Treadwell Gold 500 lot 100 Alaska United Gold Mining Co., par $5 515101 766 Treadweli Yukon Co., Ltd., common. par $1 56 lot 10,000 Alaska United Gold Mining Co., par 55 $3101 4,605 Alaska Mexican Gold Mining Co.. par 35 $3 lot 6,875 Alaska United Gold Mining Co., par $5 561 lot 3,062 Treadwell Yukon Co., Ltd., common, par $1 $2 lot 2,999 Tainton Industries Corporation, par 51 $55 lot 2,380 Treadwell Yukon Co., Ltd., common, par $1 52 lot 7,000 Y. M. C. A. Hotel Co., pref. of San Francisco, par 31 $5 lot 500 Insurance Securities Co. Inc., Temp., ctf, par $10 $1 lot 340 Kreuger Sc Toll, par 100 kr 750 lot 50 International Match Corp., pref, par $35 '4 lot 400 Insurance Securities Co., Inc., par sto $1.25 lot 100 Kreuger Sc Toll, par 100 kr $1 lot 216 American Commonwealths Power Corp., A 65e lot 60 United States Stores Corp., common $5 lot 2,200 Intercontinent Petroleum Corp.. par $5 $16 lot 25 Farms Co. A 54101 1,000 Intercontinent Petroleum Corp., par 55 $1101 67 Appalachian Gas Corp., common, stamped 550101 3311.B.Sc R. Knight Corp. A 52 lot 182 Empire Public Service Corp. A 50c lot 57 Kreuger Sc Toll, par 100 kr $25 lot 500 Building Products, Inc 10934 5 American Telephone Sc Telegraph Co., par $IN $1 lot 50 Electric Shovel Coal Corp., prof 60c lot 60 International Match Corp., pref. par $35 52 lot 15 Empire Corp., common, par $1 $25 lot 1,650 Dartreal Corp., par $5 $2 lot 15 Empire Corp., common, par SI 52101 200 S. W.Straus Investing Corp., pref., par $50; 200 common 25 Bowles Aagawam Airport. Inc., par $100; 40 Huntington Mills, Inc., par 820 lot $25; 1 Mt. Tom Realty Trust 85 lot 49 The Reglets Co., par $100 31101 25 Magee Furnace Co.,8% 2d preferred, par $100 425 Kreuger Sc 'loll, par 100 kr; 50 International Match Corp., pref., par $35; $6 lot 10 Washington Central Trust 78, preferred, par $100 $1 lot 100 Kreuger Sc Toll, par 100 kr lot $5 $100 preferred, par 68, 5 National Electric Power Co., 2 20 United Light Sc Power Co., class A 25 New England Industrial Corp., par $100;6 Plum Island Beach Co.,common, $1.50 lot par $5; 20 Plum Island Beach Co., preferred, par $100 8 139 West-Side Co. of Manchester, N. If., par $100 $7 lot 14754 Raymond-Whitcomb Inc., common 5454 lot 300 International Match Corp., preferred, par $35 100 Rolls-Royce of America, common; 125 Poole Engineering Sc Machine Co., $3 lot class A 40 67 Haverhill Electric Co., par $25 62 15 Plymouth Cordage Co., par $100 654 150 Great American Indemnity, par $1 $40 lot 50 Lawyers Mortgage Investment Corp., par $20 $5 lot Ltd. par 11 5,000 Bellellen Lorrain Mines, $4 lot 750 Ridge Dome Mines, Ltd., par $1 $10 lot 100 Detroit Harbor Terminals, Inc., preferred; 10 common 750101 45 International Match Corp., preferred, par $35 500 Kreuger Sc Toll, American certificates, stamped; proof of claim has been $7 lot par 100 kr bankruptcy, filed with Referee in $1 lot 120 International Match Corp.. preferred, par $35 $3 lot 500 Insurance Securities Co., Inc., par $1 85101 1011. M.Sawyer Sc Co., preferred, par $100 $2 lot 100 Insurance Securities Co., Inc.. par $1 25 Southern Surety Co., par IX; 25 Southern Holding Sc Securities Co.___51.50 lot 51 Associated Telephone Utilities, common; 90 $6 cony. preferred A; $2,000 $45 lot Lynn Commercial Realty Co. Os, certificate of deposit 760. lot 100 Lawyers Mortgage Investment Corp., par 520 76e. lot 250 Lawyers Mortgage Investment Corp.. par $20 100 Rolls-Royce of America, preferred, par El ; 1,560 American Protein $5 lot Corp., common 154 100 Commonwealth Sc Southern Corp., common *4 40 Commonwealth Sc Southern Corp., warrants $5 lot 10 Boston Sc Gloucester Steamboat Co., par $50 20 1 American Gas Sc Electric Co.. common 14 4 North American Co., common 6 35 1,000 Commonwealth Shares, Inc $275101 341 Willys Overland Co., pref., par $100; 225 common, par $5 1 50 Municipal Service Co., preferred, par $100 $3 lot 300 Cuba Cane Products, Inc 500. 50 Farms Co. common A 50o lot 11 Central Public Utility Co., class A 31 lot 100 Kreuger Sc Toll American certificates, par 100 kr 800 lot 2354-80 Central Public Utility Co., class A 150 lot 10 Kolster Radio Corp $3 lot 100 International Match Corp., Pref, Par $35 16 2-3 General Theatre Equipment,Inc.,$3 pref., v.t.c; 33 1-3 common, v.t.c.$10 lot $254 lot 100 International Match Corp., pre, par 635 52.25101 162 Kreuger Sc Toll, par 100 kr $160 lot 50 International Match Corp., prof, par 835 $4 lot 425 Kreuger Sc Toll. par 100 kr $4 lot 200 International Match Corp.. prelerred, par an $1 lot 25 Indian Company, par $100 25o 101) Compton Building Trust. par $100 $234 lot Trust, par $100 363 Factory Buildings Financial Chronicle Volume 137 Shares. Stock. $ per Sh. 40 Technology Chambers Trust, par $100 35c 100 Compton Building Trust, par $100 62 Factory Buildings Trust, par $100 $214 40 Technology Chambers Trust, par $100 350 100 International Match Corp., pref, par $35 $2 lot 73 Keene Mica Co $15 lot 150 Kreuger & Toll, par 100 hr 533.4 lot 7 Springfield Gas Light Co., tree, par $25 22 11 Springfield Gas Light Co., v.t.c., par 525 22 151 Kreuger & Toll, par 100 kr $4 lot 166 4-6 United Retail Chemists B 55 lot 333 1-3 United Retail Chemists, pref $26 lot 100 International Match Corp.. preferred, par $35 5234 lot 20 Cuba Cane Products Co., Inc $1 lot 300 Gadsden Copper Co $13 lot Bonds. Per Cent. $5,000 Mt. Tom Realty Trust 6s, Jan. 1938; $3,500 Eastern States Exposition deb. 45, Sept. 1963 $70 lot $7,000 Danzig Port & Waterways 6.148, July 1952 44 & int. $500 Mahoney Anthracite Corp. 1st mtge. 8s, May 15 1932; $1,000 MaricoPa County, Municipal Water Conservation District. 1952 W. of dep.: $100 Hart Coal Co., 1st mtge. 8s, ctf. of dep; $1,000 Fiske & Co. 63.45, etf. of dep.; $1,300 Babcock Printing Press & Mfg. Co. is. ctf. of dep.; $1,000 Meriden Foster & Merriam Co. ref. is. ctf. of dep; $1,000 Alaska Anthracite RR. Co. lot mtge. 65, ctf. of dep $40 lot $6,000 Woburn, Mass, 4.34s, July 1941, reg, tax exp 954 & int. $4,000 Boston, Muss. 45, Oct. 1971, reg, tax exp 85 & int. 7,500 shares Wilson-Jones Co.; mortgage note for $71,000, dated Nov. 18 1930, due three years from date; secured by trust deed of even date covering property in the Village of River Forest, County of Cook and State of Illinois; mortgage note for $25,000 signed, dated Nov. 18 1930, due three years from date, scoured by trust deed of even date covering property in the County of Garland and State of Arkansas; assignment of interest in certain sums, due or to become due from Madison-Kedzie Trust & Savings Bank, dated March 31 1932 $200.000 lot $142,500 Cla Azucarera Ceballos 7s, 1940 25% flat $3,000 Northern Texas Electric Co. 55, Jan. 1940 035 lot $4,000 Carson Hill Gold Mining Co. 75, March 1927, coupon Sept. 1925 and subsequent on $6 lot $5,000 San Francisco Bay Toll Bridge 7s, Nov. 1942 1% flat $2,000 Electric Public Service Co. deb. 6s, April 1937 $12 lot $2,000 Insult Utility Investments deb. 6s, Jan. 1940, see. B 151 coupon and IM certificate of deposit $5 lot $10,000 National Gas & Electric Corp. 5145, Feb. 1931 extended to 1933coupon Feb. 1933 on $200 paid on principal $20 lot $2.000 Mobile & Ohio ltd. 414s, 1977 certificate of deposit $30 lot $5,000 Arizona Edison Co. 2-year 6145, Dec. 1933. interim receipts $20 lot Demand note for $6,250, dated Boston. Oct. 17 1927, with interest at 5% payable semi-annually $10 lot One per cent interest in earnings and royalties in Patent No. 1,750,795 $5 lot Promissory note for $500 with interest at 6%, dated April 24 1929 and due In 60 days 330 lot By Barnes & Lofland, Philadelphia: Stocks. Shares. $ per Sh. 50 Wayne Title & Trust Co., Wayne, Pa 5 100 Real Estate-Land Title & Trust Co., par $10 634 10 Peoples Light & l'ower Corp., pref., no par $4 lot 40 Peoples Light & Power Corp., common, no par $2 lot 50 Associated Gas & Electric Co.,6% pref., no par $80 lot 35 Philadelphia Co. for Guaranteeing Mortgages, par $20 $17 lot 200 Jonas Estate Corp., par $1 $10 lot 10 Martinsburg Community Hotel Co., pref $1 lot 5 Martinsburg Community Hotel Co., common SI lot 41 600-1000 Independence Indemnity Co 51 lot 5734.97 balance due on deposit Franklin Trust Co $85 lot 50 Penn Metal Co., $7 cumulative preferred, par $100 $1 lot 50 Delaware-Montgomery Counties Co. for Guaranteeing mortgages, Preferred (with 50 shares common) 5110 lot 40 Delaware-Montgomery Counties Co. for Guaranteeing Mortgages, com_555 lot 20 Specialized Travel Service, Inc., preferred $11 lot 20 Specialized Travel Service, Inc., common 511 lot Certificate of interest In stockholders' special reserve, face amount $1,902.50, In Sarajean Building & Loan Association, dated Dec. 1 1931 560 lot 25 Sixth National Bank, 1 hiladelphla $1 lot 10 American Cities Co., 6% preferred $2 lot 48 Independence Indemnity Co 51 lot BondsPer Cent $3,000 Fifty-second & Madison Ave. Office Bldg., 6% 1st leasehold mtge., due 1947 (Nov. 1932 and subsequent coupons attached) 7 $2,000 Hotel Lexington 6% 1st mtge. "A," certificate of deposit 19 $9,000 Majestic Apartments,6% 1st mtge., certificate of deposit 143.4 $25.000 Central Zone Bldg., 6% 1st mtge., certificate of deposit 3634 $15,000 Alden Apartment Bldg., N. Y.. 6% 1st mtge., certificate of deposit 213.4 $2,000 Jones Estate Corp..6% 20-year junior mtge., due Feb. 11953; regis 334 $5,000 Chicago Aurora & Elgin RR.,6% debenture Income, due 1972 58 lot $3,000 United Public Service Co., 614% debenture. due October 1933 (April 1932 and subsequent coupons attached) $170 lot $2,000 Pittsburgh Hotels Corp., 6% serial mtge., due March 1 1939 (September 1930 and subsequent coupons attached) $150 lot $1,000 Pittsburgh Hotels Corp..6% serial mtge., certificate of deposit 590 lot 55,000 Pittsburgh Hotels Corp., 514% 1st mtge., due 1948, ctf. of deposit_51,000 lot $40,000 The Pine Manor (S.E. corner 49th and Pine), 6% 1st mtge. "B," due May 1 1932; registered $210 lot $3,000 Rittenhouse Square Corp., 6% 2d mtge., due Sept. 1 1937 (September 1932 and subsequent coupons attached) $10 lot $1,000 Rittenhouse Square Corp.,6% income, due Jan. 1 1946 $1 lot $1,000 Vanderbilt Ave. Bldg. Corp., 644% 1st mtge., certificate of deposit_.$40 lot $4,000 Joplin & Pittsburgh By. 1st 55, 1930. certificate of deposit $5 lot By A. J. Wright & Co., Buffalo: 100 Kreuger & Toll Co., class B overseas receipt 51 Kreuger & Toll Co.. class B overseas receipt 100 Hypochlorito Products Corp.. pref 150 Hy pochlorite Products Corp., common 100 Sheridan Terrace, Inc 50.01 0.01 10c. lot be,lot 250. lot DIVIDENDS. Dividends are grouped in two soparate 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: IVhen Per Share. Payable. Name of Company Railroads (Steam). Cleve. CM.& St. Louis,5% pref.(qu.)._ Semi-annual Books Closed Days Inclusive. $134 Jan. 31 Holders of rec. Jan. 20 55 Jan. 31 Holders of rec. Jan. 20 Public Utilities. 53 Jan. 2 Holders of rec. Dec. 15 Attleboro Gas Light (guar.) Binghamton Gas Works, 7% pref. (gu.) $114 Jan. 2 Holders of rec. Dec. 21 British Columbia Elec. Pow. & GasPreferred (guar.) 513.4 Jan. 2 Holders of rec. Dec. 20 Brooklyn-Manhattan Transit Corp.5134 Jan, 15 Holders of rec. Dec. 30 Preferred (guar.) 50c Jan. 15 Holders of rec. Dec. 31 Canadian Light & Pow. Co. (s.-a.) Central Illinois Pub. Serv.-56 and 6% c um, pre f. dive. omitted. 51 Jan. 15 Holders of rec. Jan. 2 Detroit Edison Co.(guar.) $134 Jan. 15 Holders of rec. Dec. 30 Duquesne Light Co.,5% 1st pref. (qu.)_ Foreign Light & l'ow., 56, 1st pf.(guar.) 5134 Jan. 2 Holders of rec. Dec. 20 $214 Jan. 2 Holders of rec. Dec. 19 Gas & Elec. Co. of Bergen Co.(s.-a.) g 34 of 1% Jan. 2 Holders of rec. Dec. 15 Gas Securities Co., cons.(monthly) 50c Jan. 2 Holders of rec. Dec. 15 Preferred (inouthlY) 750 Jan. 2 Holders of rec. Dec. 18 General Water, Gas & Elec., $3 pt. (gu.) Greenfield Gas Light (guar.) 31 Dec. 26 Holders of rec. Dee. 15 -- Name of Company. 4487 When Per Share. Payable. Books Closed. Days Inclusive. Public Utilities (Concluded). Hartford Gas (guar.) 75c Dec. 30 Holders of rec. Dec. 15 8% preferred (guar.) 50c Dec. 30 Holders of rec. Dec. 15 Houston Natural Gas. 7% pref. (quer.). 8714c Dec. 30 Holders of rec. Dec. 20 Illuminating Shares, class A (quar.).-50c Dec. 30 Holders of rec. Dec. 20 Iowa Public Serv., 571st & 2d pt. (gu.)- $134 Jan. 2 Holders of rec. Dec. 20 5634 1st preferred (guar.) $IN Jan. 2 Holders oi rec. Dec. 20 3134 Jan. 2 Holders of rec. Dec. 20 $6 2d preferred (guar.) Kansas Power (Chic.),$7 pref.(quar.) $114 Jan. 2 Holders of rec. Dec. 20 S134 Jan. 2 Holders of rec. Dee. 20 $6 preferred (quar.) Kentucky Utilities Co.,6% pref. (mi.)._ 5134 Jan. 15 Holders of rec. Dec. 26 Minn. Gas & Lt.,5% (part. units),(Qu.) 3134 Jan. 1 Holders of rec. Dec. 20 Montreal Light, Heat & Power Consol.Common (guar.) 38c Jan. 31 Holders of rec. Dec. 30 Montreal Tramways Co.,corn.(guar.) 5234 Jan. 15 Holders of rec. Jan. 6 New Brunswick Lt., Heat & Pow.)8.-a)_ 5234 Jan. 2 Holders of rec. Dec. 21 New Jersey Hudson R.Ky.& F'y (s.-a.) $3 Jan. 2 Holders of rec. Dec. 30 New York Pow.& Lt., 7% pref.(guar.)_ 51% Jan. 2 Holders of rec. Dec. 15 $6 preferred (guar.) 5134 Jan. 2 Holders of rec. Dec. 15 Northern States Pow. Co. (Del.)-Corn MOD Class A div Wend omitted. 134% Jan. 20 Holders of rec. Dec. 30 7% Preferred (quer.) 6% preferred (guar.) 114% Jan. 20 Holders of rec. Dec. 30 Ohio Electric Power, 7% preferred 551% Jan, 2 Holders oi rec. Dec. 15 6% preferred 55134 Jan, 2 Holders of rec. Dec. 15 Otter Tall Power, $6 pref.(guar.) 5134 Jan. 2 Holders of rec. Dec. 15 $5% preferred (guar.) 5114 Jan. 2 Holders of rec. Dec. 15 Panama Power & Light, pref. (guar.)._ 5134 Jan. 2 Holders of rec. Dec. 26 Penna. Gas & Elec.. 7% pref. (guar.)._ 5134 Jan. 2 Holders of rec. Dec. 20 Philadelphia Co., common (guar.) 17%c Jan. 25 Holders of rec. Dec. 30 Philadelphia & Darby Ry 500 Jan. 2 Holders of rec. Dec. 20 Philadelphia Passenger Ry 5134 Jan. 10 Holders of rec. Dec. 28 Pub. Serb'. Corp. of N. J., 6% pf.(mo.) 50c Jan. 31 Holders of rec. Jan. 2 St. Joseph Ky., Light, Heat & Power5134 Jan. 2 Holders of rec. Dec. 15 5% Preferred (guar.) Southern Calif. Gas,6% pref. (quar.)_. 3734c Jan. 15 Holders of rec. Dec. 31 6% preferred, series A (guar.) 3734e Jan. 15 Holders of rec. Dec. 31 Sou. Counties Gas of Calif.,6% pf.(tin.) 5134 Jan. 15 Holders of rec. Dec. 30 Southern New England Telep. (guar.).. 5134 Jan. 15 Holders of rec. Dec. 30 Springfield Gas& Elec. Co., pref.A (gu.) 51% Jan. 2 Holders of rec. Dec. 15 Superior Water, Lt.& Pow.,7% pf.(g11.) 51% Jan. 2 Holders of rec. Dec. 15 Taunton Gas Light $1.40 Jan. 2 Holders of rec. Dec. 15 Texas Electric Service Co.,$6 pref.(an.) 513.4 Jan. 2 Holders of rec. Dec. 15 Toledo Light & Power Co., pref. (guar.) 5134 Jan. 2 Holders of rec. Dec. 15 United Gas & El.Co.(N.J.).5% pf.(8-a.) 234% Jan. 15 Holders of rec. Dec. 30 U.S. Elec. Lt.& Pow.Shares (Md.).--- 1.200 Jan. 2 Holders of rec. Dec. 15 West Kootenay Pow.& Lt., pref. (gu.)_ 5134 Jan. 2 Holders of rec. Dec. 22 Western Massachusetts Co. (guar.).-50c Dec. 30 Holders of rec. Dec. 18 Western N.Y. Water, $5 pref. (guar.) 313 , 4 Jan. 2 Holders of rec. Dec. 22 West Texas Utilities Co., $6 pref. (gu.)_ 75c Jan, 1 Holders of rec. Dee. 15 Western United Gas & Electric634% preferred (guar.) 5134 Jan. 2 Holders of rec. Dec. 16 6% preferred (guar.) $114 Jan. 2 Holders of rec. Dec. 16 Wisconsin Elec. Pow., 634% pf. (gu.) $13.5 Jan. 2 Holders of rec. Dec. 15 6% preferred (guar.) 5154 Jan. 2 Holders of rec. Dec. 15 Banks and Trust Companies. Brooklyn Trust Co 11% Commercial Bank & Trust (N. Y.) (gu.) 52 Empire Trust Co.(guar.) 250 Fulton Trust Co.(N. Y.) (guar.) 53 Lawyers County Trust Co.(guar.) 600 New York Trust Co. (guar.) 5134 Title Guarantee & Trust Co.-Div. omi tted. United States Banking Corp. (monthly) 7c West New Brighton Bank (Staten Isi'd) $2 Fire Insurance Companies, Aetna Casualty & Surety Co.(guar.) 400 Extra 400 Birmingham Fire Ins. of Pa. (guar.) - 5134 California Insurance Co.(guar.) 50c Continental Insurance Co. (s.-a.) 600 Excess Ins. Co. of America, coin 250 Fidelity-Phenix Fire Ins. Co. (s.-a.) 60c National Fire Ins. Co. of Hartford (gu.) 50c New Mimi shire Fire Ins. Co. (guar.) 40c Springfield Fire & Marine Ins. Co. (au.) 51.12 Jan. Jan. Jan. Jan. Jan. Jan. 2 Holders of rec. Dec. 27 2 Holders of rec. Dec. 27 2 Holders of rec. Dec. 22 2 Holders of roe. Dec. 26 2 Holders of rec. Dec. 225 2 Holders of rec. Dec. 23 Jan. 2 Holders of rec. Dec. 18 Jan. 10 Holders of rec. Dec. 31 Jan. 2 Holders of rec. Dec. 18 Jan. 2 Holders of rec. Dee. 18 Dec. 23 Holders of rec. Dec. 13 Jan. 2 Holders of rec. Dec. 23 Jan. 10 Holders of rec. Dec. 30 Jan. 15 Holders of rec. Dec. 30 Jan. 10 Holders of rec. Dec. 30 Jan. 2 Holders of rec. Dec. 18 Jan. 2 Holders of rec. Dec. 16 Jan. 2 Holders of rec. Dec. 20 Miscellaneous. Abraham & Straus, Inc., pref. (quar.)- $134 Feb. 1 Holders of rec. Jan. 15 Aetna Casualty & Surety (guar.) ttec Jan. 2 Holders oh rec. Dec. 18 Extra 40c Jan. 2 Holders of rec. Dec. 18 American Composite Trust Shares 7.2675c Dec. 30 Am.Discount Co.(Ga.), 634% pt.(s.-a.) $1.63 Jan. 2 Holders of rec. Dec. 20 American Home Products(ma.) 20c. Feb. 1 Holders of rec. Jan. 15 American Maize Products, pref. (guar.) 51% Dec. 30 Holders of rec. Dec. 26 Common (guar.) 50c Dec. 30 Holders of rec. Dec. 26 Amer. Thermos Bottle Co.. pref. (guar.) 87340 Jan. 2 Holders of rec. Dec. 21 Amoskeag Co.. prof. 01.-10 324 Jan. 3 Holders of rec. Dec. 26 Common 50o. Jan. 3 Holders of rec. Dec. 26 Apex Elec. Mfg. Co., pref. (guar.) 51% Jan. 2 Holders of rec. Dec. 20 Arrow-Hart & Hegeman El., corn. (gu.)_ 100. Jan. 2 Holders of rec. Dee. 23 Preferred (guar.) 5134 Jan. 2 Holders of rec. Dec. 23 Arundel Corp.. corn. (guar.) 25C. Jan, 2 Holders of rec. Dec. 26 Atlas Thrift Plan Corp., pref. (guar.) 17340 Jan. 1 Holders of rec. Dec. 26 Automobile Insurance Co. (guar.) 250 Jan. 2 Holders of rec. Dec. 18 Bayuk Cigar, 1st pref.(guar.) 5134 Jan. 15 Holders of rec. Dec. 31 Boss Mfg. Co.. common 5134 Dec. 22 Holders of rec. Dec. 14 13randtjen & Kluge. 7% pref. (quar.) 87140, Jan. 2 Holders of rec. Dec. 22 Bremmer Norris Realty Invest. (s.-a.)- 51 Jan. 1 Holders of rec. Dec. 15 Brewer & Co.(monthly) 75c Dee. 23 Holders of rec. Dec. 20 Extra $4 Dec. 23 Holders of rec. Dec. 20 Bridgeport Hydraulic (guar.) 40c, Jan. 15 Holders of rec. Dec. 30 British-American Tobacco Co. Common (Una] and interim) 10d Jan. 17 Builders Exchange Bldg. of Balt. (s.-a.) 3% Jan. 9 Holders of rec. Dec. 23 Burco, inc., 53 cony. pref. (guar.) 75c Jan. 2 Holders of rec. Dec. 22 Byers (A. M.) Co., pref.-div. omitted. California Ink Co.(guar.) 500 Jan, 2 Holders of rec. Dec. 23 Canadian Cotton, Ltd., pref 5134 Jan. 4 Holders of rec. Dec. 22 Common 51 Jan. 4 Holders of rec. Dec. 22 Canadian Fairbanks Morse, pf. (guar.). $134 Jan. 15 Holders of rec. Dec. 30 Canadian Industries, pref.(guar.) 5134 Jan, 15 Holders of rec. Dec. 30 Canadian Packers, Ltd., 7% pref. (gu.)_ 51% Jan. 2 Holders of rec. Dec. 16 7% preferred 55114 Jan. 2 Holders of rec. Dec. 16 Canadian Wirebound Boxes. Ltd, el. A h3714c Jan. 2 Carey (Philip) Mfg.,6% pref 55134 Dec. 28 Holders of rec. Dec. 20 Champion International (guar.) 5134 Jan. 2 Holders of rec. Dec. 15 7% preferred (guar.) 5134 Jan. 2 Holders of rec. Dec. 15 Chatham Mfg.,7% pref.(guar.) 5134 Jan. 2 Holders of rec. Dec. 20 6% preferred (guar.) 5134 Jan, 2 Holders of rec. Dec. 20 Cherry-Burrell Corp.-cliv. action postp oned. Chipman Knitting Mills, 7% pr. (s.-a.) 5334 Dec. 23 Holders of rec. Dec. 1 Cincinnati Advertising Products guar.)_ 25c Jan. 2 Holders of rec. Dec. 20 City Investing Co., capital stock 1% Jan, 4 Holders of rec. Jan. 2 Preferred capital stock (guar.) 154% Jan, 4 Holders of rec. Jan. 2 Claude Neon Elec. Prod.-cliv. action de [erred. Cleveland Union Stock Yards (quar.).__ 25c Jan. 2 Holders of rec. Dec. 19 Columbia Mills (guar.) 50c Jan. 2 Holders of rec. Dec. 22 Extra $1 Dec. 22 Holders of rec. Dec. 22 Conigas Mines 1234c Jan. 10 Holders of rec. Dec. 30 Conn. General Life Ins. Co.(guar.)_ _ 20c Jan, 2 Holders of rec. Dec. It, Corn Products Refining, corn. (quar.) 755. Jan, 20 Holders of rec. Jan. 2 Preferred (guar.) UM Jan. 15 Holders of rec. Jan. 2 Creamery Package Mfg. Co_6% pf.(gu.) 3134 Jan, 10 Holders of rec. Jan. 2 Crown, Willamette Paper, 7% pref 551 Jan. 1 Holders of rec. Dec. 27 Cudahy Packing Co., Common (guar.)._ 62140 Jan. 15 Holders oh rec. Jan. 5 Davenport Hosiery Mills,7% pf.(au.) 5114 Jan. 2 Holders of rec. Dec. 21 Delaware Rayon Co., class A 96c Dec. 15 Holders of rec. Dec. 15 Dominion Bridge Co., Ltd., corn. (gu.). 50c. Feb. 15 Holders of rec. Jan. 31 Common (guar.) 50c. May 15 Holders of rec. Apr. 30 Dominion Rubber Co., pref.(quar.) 5134 Dec. 30 Holders of rec. Dec. 23 Name of company. When Per Share. Payable. Books Closed Days Industos. Miscellaneous (Concluded). Eastern Theatres, Ltd., pre/.(0.-10— - $334 Jan. 31 Holders of rec. Dec. 30 Edmonton City Dairy,634% pref.(qu.)_ 3134 Jan. 2 Holders of rec. Dec. 15 3134 Dec. 29 Holders of rec. Dec. 15 Electrical Securities, pref.(guar.) Falstaff Brewing Corp.—No dividend act ion take n. 10c Jan. 20 Holders of rec. Jan. 5 Firestone Tire & Rubber Co., cont.(qu.) First Nat. Securities Corp.of Bait.(MO 8134 Dec. 21 Holders of rec. Dec. 18 71.47Ic Dec. 31 Fixed Trust Oil Shares 15e. Dee. 30 Holders of reo. Dec. 26 Fostoria Pressed Steel (quar.) 50. Dec. 30 Holders of reo. Dee. 26 Extra 45e Jan. 1 Holders of rec. Dec. 22a Fourth National Investors Corp., com_ _ 250 Dec. 15 Holders of rec. Dec. 14 Galveston Wharf (monthly) 10e Jan. 2 Holders of rec. Dee. 23 Garlock Packing Co.. common (quar.). General Stockyards Corp., pref.(quer.). $134 Feb. 1 Holders of rms. Jan. 15 Common dividend omitted. 15e Jan. 2 Holders of rec. Dec. 20 Gibson Art Co. (quar.) 300 Feb. 1 Holders of rec. Jan. 10 Gold Dust Corp.,common (quar.) 20 Goodyear rextlle Mills, pref. (quar.)_.... 134% Jan. 2 Holders of rec. Dee. 22 500. Dee, 28 Holders of rec. Dec. Gorham Mfg. Co.,com.(special) $134 Feb. 1 Holders of rec. Jan. 12 Gotham Silk Hosiery Co.,7% pt.(qu.) $5 Jan 2 Holders of rec. Dec. 20 Great West Life Assurance (quar.) $134 Jan 2 folders of rec. Jan. 1 Griggs Cooper, 7% pref. (quar.)_. $3 Dec. 27 Holders of reo. Dec. 20 Hamilton Woolen Co., common (quar.). 40e. Jan. 2 Holders of reo. Dee. 20 Hartford Steam Boiler (guar.) Hibbard, Spencer, Bartlett & Co.—Divl deed ac tion def erred. 75e. Jan. 15 Holders of rec. Dec. 30 (qu.) A&B corn. Household Finance Cp., $1.05 Jan. 15 Holders of rec. Dec. 30 Participating preference ((Plan) 750 Dec. 30 Holders of rec. Dec. 29 Howe Sound Co.(quar.) 1234c Jan. 2 Holders of reo. Dec. 19 Hunts, Ltd., class A and B (quar.) 25e Jan. 2 Holders of rec. Dec. 22 Indep. Pneumatic Tool CO., COM.(qu.). 250 Jan. 2 Holders of rec. Dec. 22 Extra 32e Jan. 2 Holders of reo. Dec. 15 Industrial Credit Corp.of N.Es(quar.)87340 Jan. 2 Holders of rec. Dee. 15 7% preferred (quar.) Jan. 2 Holders of rec. Dec. 15 6340 Extra 12340 Jan. 1 Holders of roe. Dec. 20 Inland Investors Co.(quar.) 70e Jan. 15 Holders of rec. Jan. 9 Interallied Investors Corp., A (s.-a.) 20e Dee. 27 Holders of rec. Dec. 20 Internat. Button Hole Sew. Mach.(qu.) 10e Doe. 27 Holders of rec. Dee. 20 Extra 15o Dec. 30 Holders of rec. Dec. 22 Laclede Steel Co. (quar.) $134 Jan. 2 Holders of rec. Dec. 23 Lane (The) Co.. 7% pref.(guar.) 250 Jan. 15 Holders of rec. Dee. 31 Langendorf United Bakeries, class A. _ $2 Jan. 2 Holders of rec. Dec. 28 Lycoming Mfg.Co.,8% prof.(guar-)50e Jan. 15 Holders of rec. Dec. 31 MacAndrews& Forbes Co.,corn.(qu.) Jan. 15 Holders of reo. Dee. 31 35e Extra 3134 Jan. 15 Holders of rec. Doe. 31 Preferred (quar.) Mackay Cos.4% pref.—Div. action not taken. Dee. 15 McLeod Bldg., 7% preferred (quar.)._. $134 Jan. 2 Holders of roe. Jan. 19 500 Feb. 15 Holders of rec. Macy (R. H.)& Co.common ((Mar.).— Midland & Pacific, Grain, 7% pref.(qu.) 5134 Jan. 2 Holders of rec. Dec. 20 2 Jan. roe. of Fielders 20 Jan. 3c Model Oils, Ltd 3134 Jan. 2 Holders of rec. Dee. 21 Moore Corp., A & B preferred 30 Dec. rec. of Holders 15 Jan. 250 National Fuel Gas Co 2.10 Jan. 2 Holders of reo. Dec. 15 Nation-Wide Security Co.(Md.) $1 Dec. 20 Holders of roe. Dee. 12 New Orleans Cold Stor.& W'house 0110 Jan. 2 Holders of reo. Dec. 20 500 NoblItt-Sparks Industries h$154 Dec. 1 Holders of rec. Nov. 15 North American Elevator 7% pref Jan. 2 Holders of roe. Dec. 20 (qu.) pref. 3134 Lines. Northland Greyhound 3e Dee. 30 Holders of roe. Doe. 20 Occidental Petroleum (quar.) $2 Jan. 2 Holders of rec. Dec. 22 Ogilvie Flour Mills Co., Ltd., com.(qu.) 15e Jan. 15 Holders of reo. Dee. 29 Otis Elevator Co., common (titian) 3134 Jan. 15 Holders of reo. Dec. 29 Preferred (quar.) 100 Dee. 30 Holders of roe Dee. 21. Packer Corp 250 Jan. 2 Holders of reo. Dee. 23 Parke, Davis& Co.(quar.) 100 Jan. 2 Holders of roe. Dee. 23 Extra $1 Jan. 2 Holders of rec. Dec. 15 Penn Investment preferred Pennsylvania Salt Mtg.Co.—Div.action deferr ed. 100 Dee. 15 Holders of roe. Dec. 10 Pepeekeo Sugar CO.(monthly) 250 Feb. 1 Holders of rec. Jan. 15 Phelps Dodge Corp.(special) 250 Jan. 6 Holders of reo. Dec. 31 Polygraphic Co.of Amer.. Pref•(quar.). $2 Dec. 27 Holders of Teo. Dec. 15 (semi-ann.) Building Providence Provincial Paper 7% pref.(guar.).— - $134 Jan. 2 Holders Of roe. Dec. 15 20e Dec. 27 Holders of roe. Dec. 20 Reece Button-Hole Sew. Mach.Co.(qu.) 100 Doe. 27 Holders ot roe. Dee. 20 Extra Sc Doe. 27 Holders of reo. Doe. 20 Reece Folding Mach. Co. (quar.) ken. ta not action Co.—Div. Tool Gear Ross 25c Dec. 28 Holders of roe .Dee. 21 Ryerson & Sons(quar.) $1 Dec. 23 Holders of reo. Dec. 15 Safety Car Heat. & Lighting (guar.).— Schoeneman (J.), Inc., 1st pref.(guar.). 8134 Jan. 2 Holders of reo. Dee. 14 Second National Invest. Corp. pref.... $1.05 Jan. 1 Holders of rec. Dec. 220 Seeman Bros.,Inc.,common (quar.)._._ 62340 Feb. 1 Holders of rec. Jan. 16 4.0704c Dee. 31 Holders of reo. Dec. 31 Selected American Shares 2.0687e Jan. 2 Selected Cumulative Shares Jan. 2 8.9960e Selected Income Shares 10c Jan. 2 Holders of reo. Doe. 22 Shawmut Association (quar.) Doe. 24 Holders of reo. Dec. 19 15e (guar.).— Mines Coalition King Silver h$1 Jan. 2 Holders of reo. Dec. 20 Silverwoods Dairies, 7% pref 400 Dee. 29 Holders of rec. Dee. 21 Standard Cap & Seal Corp. corn. extra.. $134 Jan. 1 Holders of roe. Dec. 15 StandardFuel Co. ex% prof. 300 Feb. 1 Holders of reo. Jan. 8 Steel Co. of Canada, common (guar.)._ Feb. 1 Holders of reo. Jan. 8 4334c Preferred (guar.) Dec. 30 Holders of reo. Doe. 15 4334c Rix Baer & Fuller, 7% Pref.(quar.) $134 Jan. 2 Holders of roe. Dee. 23 Tamblyn (G.). Ltd, Pref.(qom.) 450 Jan. 1 Holders of rec. Dec. 22a Third National Investors Corp. corn-- r 100 Jan. 2 Holders of reo. Doe. 22a Thrift Stores, Ltd., common (quar.). r134% Jan. 2 Holders of reo. Dee. 22a 7% preferred (quar.) r134% Jan. 2 Holders of reo. Deo. 220 634% preferred (quar.) of reo. Dec. 15 Tip-Top Tailors, Ltd., prof. (quar.)........ UM Jan. 2 Holders Trust— Tobacco Securities of reo. Nov.27 Holders 21 Dee. 18.8e Amer. dep. rec, deterred rug 53.60 Dee. 21 Holders of reo. Nov.27 Amer. dep. rec. ord. reg of roe. Dec. 18 Holders 30 Dee. $4 Travelers Insurance Co.(quar.) $134 Jan. 15 Holders of rec. Dec. 30 Tucketts Tobacco Co., pref. (qllar.) of roe. Dee. 21 Holders 31 Dec. $134 (quar.)_._.. Omaha of Union'Stockyards rec. Doe. 20 Union Twist Drill Co.. pref.(guar.).— $134 Doe. 30 Holders of $IM Jan. 2 Holders of reo. Dec. 20 United Loan Corp.(quar.) of rms. Dee. 20 Holders 2 Jan. 50o Extra 500 Jan. 15 Holders of rec. Dee. 27 United Securities, Ltd. (quar.) United States Smelt., Helloing & Mining 25e Jan. 15 Holders of reo. Jan. 2 Common (quar.) $334 Jan. 15 Holders of reo. Jan. 2 Extra Jan. 15 Holders of reo. Jan. 2 8734e Preferred (quar.) $134 Jan. 2 Holders of rec. Dee. 20 Valve Bag Co., pref.(quar.) Jan. 5 Holders of rec. Dee. 26 $1 preferred Oil West Coast 100 Jan. 2 Holders of ree. Dec. 19 Wort Virginia Pulp & Paper com.(q u.) Holders of reo. Dee. 30 Western Assurance(Toronto) pref.(11.-a.) $1.20 Jan. 2'Holders of reo. Deo. 15 4134 Jan. 2 Whlttal Can Co., Ltd..64% pref 300 Doe. 28 Holders of reo. Dee. 20 Woodward & Lathrop (quar.) of reo. Dee. 20 Holders 28 Dec. $134 7% preferred (quar.) $134 Jan. 2 Holders of rec. Dee. 22 Young (J. S.) (quar.) Jan. 2 Holders of no. Dee. 22 3134 preferred (quar.) 7% 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 Share. Payable Books Closed Days Imitates. Railroads (Steam). $2 Dee. 30 Holders of re0. Doe. 18 Alabama Great Southern. common—134 Dee. 30 Holders of rec. Dee. 18 Preferred Jan. 2 Holders of reo. Doe. 15 $434 Albany & Susquehanna(a-a) $3 Jan. 1 Holders of reo. Dee. 20 Allegheny & Western $3.30 Feb. 1 Holders of NO. Dec. 29 Atch.Top.& Santa Fe,5% pref of no. Dee. 12 Atlanta. Birmingham & Coast. pi. (11.-a.) $234 Jan. 2 Holders of reo. Dee. 26 Holders Avon, Geneseo & Mount Morris (8.-a.) $1.45 Jan. 1 Holden of reo. Dec. 2 1 Jan. 500 common Bangor de Aroostook, 134% Jan. 1 Holders of roe. Dee. P preferred 500 Jan. 2 Holders of reo. Dee. 15 Beech Creek (quar.) $234 Dee. 80 Holders of rec. Nov.29 Boston & Albany Dec. 23 1933 Financial Chronicle 4488 Name of Company. Railroads (Steam) (Concluded). Boston & Providence(quar.) Canada Southern (8.-a.) Carolina Clinchtleld de Ohio (quar.) Guaranteed ctts. (guar.) Cayuga & Susquehanna (s.-a.) Chesapeake & Ohio, com.(quer.) Preferred (s.-a.) Chicago Burlington & Quincy Cln New Orleans & Texas Pacific, corn Chin. Union Terminal Co..5% Pt.(OIL)Clearfield ie Mahoning (8.-a.) Dayton & Michigan .8% Prof. (quar.).. Delaware (8.-a) Det. Hillsdale & Southwestern (s.-a.) Elmira & Williamsport. pref. (8.-a.)Georgia RR.& Banking (quar.) Joliet de Chicago, guaranteed Illinois Central. leased lines (8.-a.) Lackawanna RR.of N.J.. 4% gtd.(qr.) Mahonlng Coal,corn.(quar.) Preferred (5.-a.) Mobile & Birmingham,4% pref. (8.-a.). Morris & Essex Nashville & Decatur,734% gtd.(s.-a.) New London Northern (guar.) New York & Harlem (8.-a.) Preferred (8.-a.) N.Y Lackawanna & West..5% gtd.(q.) North Central (s-a) Norwich & Worcester,8% pref.(quar.). Old Colony (quar.) Philadelphia Baltimore& Washington_ Phila & Trenton (quar.) Pittsburgh Fort Wayne & Chicago (au.) 7% preferred (quar.) Pittsburgh & Lake Erie (3.-a.) Pittsburgh McKeesport& Yough Reading Co., 2d preferred (quar.) Rensselaer & Saratoga(s-a) Rochester & Genesee Valley (5.-a.) St. Joseph & Grand Island, lit pref....... 2d preferred Sussex (semi-annual) Tunnell RR. of St. Louts (5.-a.) Union Pacific, common (quar.) United New Jersey RR.& Canal(quar.). Valley RR.of N. Y.(semi-annual) Wane River, guar. (5.-a.) West Jersey fic Seashore. cons. West N. Y & Perna (s-a) Preferred (8-a) Public Utilities. Alabama Power Co.,$7 prof.(Einar.) $6 preferred (quar.) American District Telegraph of N. J.— Common (guar.) Preferred (quar.) Amer. Gas & Elect. Co.(quar.) Common (8.-a.) American Power & Lt. Co.$6 pf.((U.)... $5 preferred (quar.) Amer. Superpower Corp., let pref.(qu.). American Tel. & Tel.(quar.) Amer. Water Works & Elec. Co. of Del $6 series 1st preferred (qua?.) Appalachian Elea.Pow.. prof.(quer.).-Arkansas Pow.& Lt. Co.,$7 pref.(qu.) $8 preferred (qua?.) Atlantic & Ocean Tel. (quar.) Atlantic & Ohio Tel.(quar.) Bangor Hydro-Elec.. 7% pref.(qN).6% preferred (quar.) Battle Creek Gas.6% pref.(guar.) Bell Telephone of Canada (guar.) BellTelep. of Pa..834% pref.(qua?,)... Boston Elevated RY.,COM.(quar.) Brazilian Tract. Lt. & Pow.6% pt.(qu.) British Columbia Pow.,Class A (guar) Brooklyn & Queens Transit Corp.— Preferred (quar.) Brooklyn Union Gas Co.(guar.) Buffalo Niagara & Eastern Pow.Corp.85 1st preferred (quar.) Preferred (quar.) Calgary Power Co.,com.(quar.) Calif. Elec. Generating,6% pref.(qua?.) Canada Northern Pow.,com.(quar.). Extra Preferred (quar.) Carolina Pow.& Light Co.,$7 pref.(qu.) $6 preferred (quar.) Carolina Tel. tt Tel (quar.) Central Illinois Light Co., 7% pref.(qu.) 8% preferred (quar.) Central Kan Pow..7% pref.(quar.) 8% Preferred (qua?.) Cincinnati Gas de Elec.. 5% pref.(quar.) Ctn. Gas & Transport,5% pref.(atm.).Series A (annual) Series B (annual) Cincinnati & Sub. Bell Telep.(qu.) Citizens Wat.(Pa.) 7% pref. (qua:.)... Cleveland Eleo. Ilium. Co.(quar.) Columbus Ry., Pr.& Lt., 181 pt. A (qu.) Preferred B (guar.) Com'w'th & Soutlfn Corp., $6 pt.(qu.). Commonwealth Utiles.. 7% pref. A (au.). 6% preferred B (quar.) Commonwealth Water & Lt.,$7 pt.(qu.) $6 preferred (quar.) Connecticut Elec. Service, cons. (qua?.) Consolidated Gas. Elec. Lt.& Pow.Co.Common (guar.) Series A,5% preferred (quar.) Series D.6% preferred (quar.) Series E,534% preferred (qua?.) Consolidated Gas of N. Y 5% pf.(qu.). Consumers Gas of Toronto (guar.)- Consumers Power Co., $5 prof. (quar.). 8% preferred (quar.) 6.6% preferred (qua:.) 7% preferred (qua?.) 6% preferred (monthly) 6.6% preferred (monthly) Cont. Gas dr Elec., pref.(quar.) Continental Passenger RY.(8-a) Dayton Pow.& Lt. Co..6% prof.(ma.). Diamond State Tel..844% pf.(quar.) Duke Power Co., com.(quar.) Preferred (quar.) East Tenn.Tel.(8-a) Eastern N.J. Pow.,6% prat.(qua:,)_. Eastern Township Telephone Elizabethtown Consol. Gas quarterly_ Empire Power Corp., $6 pref. (guar.)._ Emporia Telep., 7% pref. (quar.) Escanaba Pow.& Tree.8% pref.(qu.).General Water, Gas & Elec.. $3 pf.(qu.) Georgia Power Co.,$6 pref.(quar.) $5 preferred (guar.) When Per Share. Payable 52.125 $134 $1 $134 $1.20 700 $314 $3 $8 $134 $134 $1 $1 02 $1.61 $234 $134 $2 $1 2634 $134 $2 2.125 9334e $214 $234 $234 $134 $2 $2 3134 $114 $234 134% 134% $134 $134 500. $4 $3 $5 $4 SCIo. $3 $154 $234 $234 3334 $134 311 3134 Books Closed Days Inclusive. Jan, 2 Holders of reo. Dec. 20 Feb. 1 Holders of roe. Dec. 29 Jan. 1 Holders of roe. Dee. 11 Jan. 10 Holders of reo. Dec. 31 Jan. 2 Holders of roe. Doe. 20 Jan. 1 Holders of reo. Doe. 8 Jan. 1 Holders of roe. Dee. 8 Dee. 26 Holders of reo. Dee. 15a Dee. 28 Holders of reo. Dee. 5 Jan. 2 Holders of roe. Dec. 21 Jan. 2 Holders of reo. Dee. 20 Jan. 2 Holders of rte. Dec. 15 Jan. 1 Holders of rec. Dee. 15 Jan. 5 Holders of rec. Deo. 20 Jan. 2 Holders of rec. Dec. 20 Jan. 15 Holders of rec. Dec. 30 Jan. 2 Holders of reo. Dec. 20 Jan. 2 Holders of rec. Dee. 11 Jan. 2 Holders of roe. Dec. 5 Feb. 1 Holders of reo. Jan. 19 Jan. 2 Holders of reo. Dee. 22 Jan. 2 Holders of reo. Dec. 1 Jan. 2 Holders of rec. Dec. 5 Jan. 1 Holders of reo. Doe. 20 Jan. 2 Holders of reo. Doe. 15 Jan, 2 Holders of reo. Dee. 16 Jan. 2 Holders of rem Doe. 15 Jan. 2 Holders of roe. Doe. 5 Jan. 15 Holders of reo. Dee. SO Jan. 2 Holders of reo. Dec. 15 Jan. 2 Holders of reo. Dee. 9 Deo. 31 Holders of reo. Doe. 16 Jan, 10 Holders of rec. Dee. 30 Jan. 2 Holders of Teo. Dec. 11 Jan. 2 Holders ot rec. Dec. 11 Feb. 1 Holders of rec. Dee. 29 Jan. 2 Holders of rec. Dee. 15 Jan. 11 Holders of rec. Dec. 21 Jan. 2 Holders of reo. Doe. 15 Jan. 1 Holders of reo. Jan. 1 Dec. 28 Holders of reo. Dee. 21 Dec. 28 Holders of reo. Dec. 21 Jan, 2 Holders of rec. Dec. 16 Jan. 2 Holders of reo. Dee. 18 Jan. 2 Holders of reo. Doe. 1 Jan. 10 Holders of reo. Doe. 20 Jan. 2 Holders of reo. Dee. 16 Jan. 2 Holders of rec. Dec. 31 Jan. 2 'folders of reo. Dee. 15 Jan. 2 (folders of reo. Doe. 30 Jan. 2 Holders of rte. Dec. 30 $134 Jan. 2 Holders of reo. Dee. 15 $134 Jan. 2 Holders of reo. Dee. 15 15 Holders of reo. Dec. 15 15 Holders of reo. Doe. 15 2 Holders of reo. Dec. 8 2 Holders ol reo. Dee. 8 2 Holders of reo. Dee. 15 2 Holders of reo. Dee. 15 2 Holders of reo. Doe. 15 15 Holders of reo. Dec. 15 $1 $134 250 ./2% 3734o 31340 $134 3234 Jan. Jan. Jan. Jan. Jan, Jan. Jan. Jan. $154 $134 590 500 $134 $134 $134 3134 $134 r$134 $134 $134 $134 r37c Jan. 2 Holders of roe. Dee. 8 Jan. 2 Holders of roe. Dee. 11 Jan. 2 Holders of reo. Dec. 15 Jan, 2 Holders of rec. Dec. 15 Jan. 2 Holders of reo. Deo. 17 Jan. 2 Holders of rec. Dec. 17 Jan. 1 Holders of reo. Dee. 11 Jan. 1 Holders of reo. Doe. 11 Jan. 1 Holders of reo. Dec. 20 Jan. 15 Holders of reo. Doe. 22 Jan. 15 Holders of reo. Doe. 20 Ian. 2 Holders of reo. Dec. 9 Jan. 2 Holders of roe. Dec. 15 Jan. 15 Holders of reo. Doe. 30 $134 Jan. 2 Holders of reo. Doe. 15 $134 Jan. 2 Holders LI reo. Dec. 1 $134 40o $134 $134 200 100 $134 870 750 $234 134% % VA $114 $114 $5 $10 $5 $1.12 $134 50e $i34 $1.62 $134 $134 $134 $I 4I 3134 25e 90o $134 3134 $1 8134 $234 $134 $14 $1.85 $134 50e 55c $134 5234 50o 8134 1% 134% $1.44 $OS 180 $1 $114 $144 134% 75c 8134 $134 Feb. 1 Holders ot rec. Jan. 15 Jan. 2 Holders of reo. Dee. 15 Jan. 2 Holders of reo. Doe. 15 Jan. 2 Holders of reo. Doe. 5 Jan. 25 Holders of reo. Dee. 30 Jan. 25 Holders of reo. Doe. 30 Jan. 15 Holders of reo. Doe. 30 Jan. 2 Holders of rem Dee. 15 Jan. 2 Holders of reo. Dee. 15 Dee. 30 Holders of reo. Dee. 22 Jan. 2 Holders of reo. Dee. 15 Jan. 2 Holders of reo. Dee, 15 Jan. 15 Holders of tee Dee. 31 Jan. 15 Holders of roe Doe. 31 Jan. 2 holders of rec. Doe. 15 Dec. 30 Holders of rec. Doe. 16 Dee. 30 Holders of roe. Dee. 16 Dec. 30 Holders of reo. Dec. 16 Jan, 2 Holders of reo. Dec. 20 Jan, 25 Holders of rem Dee. 30 Jan. 1 Holders of rec. Dee. 20 Jan, 2 Holders of reo. Dec. 15 Feb. 1 Holders of rec. Jan. 15 Jan. 2 Holders of reo. Deo. 8 Jan. 2 Holders of rem. Dec. 15 Jan. 2 Holders of rec. Dec. 15 Jan. 2 Holders of Tee. Dee. 20 Jan. 2 Holders of reo. Dee. 20 Jan. 1 Holders of reo. Dec. 15 2 Holders of reo. Dee. 15 2 Holders of rec. Dec. 15 2 Holders of rec. Doe. 15 2 Holders of reo. Dec. 16 1 Holders of ree. Dec. 29 2 Holders of rec. Dee. 15 Jan. 2 Holders of reo. Deo. 15 Jan. 2 Holders of rec. Dee. 15 Jan. 2 Holders of rec. Deo. 15 Jan. 2 Holders of reo. Dec. 15 Jan. 2 Holders of rec. Doe. 15 Jan. 2 Holders of rec. Doe. 15 Jan. 2 Holders of Teo. Doe. 12 Dec. 30 Holders of rec. Dec. 1 Jan, 2 Holders of reo. Dec. 20 Jan, 15 Holders of reo. Dec. 20 Jan. 2 Holders of reo. Doe. 15 Jan. 2 Holders of roe. Dee. 15 Jan. 2 Holders of tee. Dee. 17 Jan. 2 Holders of reo. Doe. 16 Apr. 15 Holders of reo. Dec. 31 Jan. 2 Holders of reo. Doe. 26 Ian. 1 Holders of roe. Dee. 15 Dec. 30 Holders of roe. Doe. 23 Feb. 1 Holders of reo. Jan. 27 Jan. 2 Holders of rem Doe. 18 Jan. 2 Holders of reo. Dec. 15 Jan. 2 Holders of reo. Doe. 15 Jan. Jan, Jan. Jan. Feb. Jan, Financial Chronicle Volume 137 Name of Company. Per When Share. Payable. Books Closed Days Inclusive. Public Utilities (Continued). Gold de Stock Teleg. (quar.) $14 Jan. 2 Holders of rec. Dee. 30 Greenwich Wat.& Gas Sys.6% Id.(qu.) $14 Jan. 2 Holders of rec. Dec. 20 Hackensack Water. Prof.. Cl. A.(qua?.) - 43110. Deo. 31 Holders of MC. Dee. 16 15e Deo. 31 Holders of ree. Dec. 16 Honolulu Gas (monthly) Houston Natural Gas,7% pref. (quar.)- 874e Dee. 30 Holders of rec. Dee. 20 Minors Bell Telep. Co.(quar.) Dec. 30 Holders of me. Dec. 20 52 Indiana Mich. Mee.. 7% pref. (quar.)-- 5111 Jan. 2 Holders or rec. Dee. 11 Si 4 Jan. 2 Holders of rec. Dec. 11 6% preferred (guar.) Indianap. Pow.& Lt.64% Pf.(qu,) 514 Jan. 1 Holders of rec. Dee. 5 6% preferred (qua?.) 5134 Jan. 1 Holders of roe. Dec. 5 Indianapolis Water 00.5% Pref. $134 Jan. 1 Holders of rec. Dee. 12 International Hydro-Elec. System— 873.40 Jan. 15 Holders of rec. Dec. 26 $334 cony. pref. (guar.) International Ocean Teleg.(guar.) $114 Jan. 2 Holders or rec. Dee. 31 Jamaica Public Service, corn.(guar.) 25e Jan. 2 Holders of rec. Dec. 15 Preferred (guar.) $111 Jan. 2 Holders of rec. Doe. 15 Jersey Cent. Pow.& Lt.00.7% Pt.(qu.) $111 Jan. 1 Holders of roe. Doe. 11 8% preferred (guar.) 514 Jan. 1 Holders of rec. Dec. 11 514 Jan. 1 Holders of roe. Doe. 11 534% preferred (quar.) Kings County Lighting Co.. corn. (qu.) $14 Jan. 2 Holders of ree Dec. 18 y% preferred (qua?.) $111 Jan. 2 Holders of ree. Dec. 18 $131 Jan. 2 Holders of ree. Dec. 18 5% preferred (qua?.) 6% preferred (quar.) $134 Jan. 2 Holders of rec. Dec. 18 Kansas City Power & Series in preferred (guar.) 513.4 Jan. 1 Holders of rec. Dec. 14 Kansas Elect. Pow.,7% pref.(quer.). $134 Jan. 2 Holders of roe. Doe. 15 6% prior pref.(quar.) $134 Jan. 2 Holders of rem Dec. 15 Kansas Gas & Elect.. 7% pref.(quar.)-- $111 Jan. 2 Holders of rec. Dec. 18 86 preferred (guar.) 5134 Jan. 2 Holders of rec. Dec. 18 Keystone Public Service,52.80 prof (an.) 70c Jan. 2 Holders of rec. Dec. 15 116e Doe. 30 Holders of rec. Dec. 12 Lone Star Gas Corp.. corn. (qua?.) 6% preferred (qua?.) SI Si Dec. 30 Holders of rec. Dec. 12 6% preferred (quar.) $14 Jan. 1 Holders of rec. Nov. 23 Long Island Lighting Co.—, Series A 7% preferred (guar.) I K % Jan. 1 Holders of rec. Doe. 15 Series IS 6% preferred (guar.) 134% Jan. 1 Holders of rec. Dec. 15 Louisville Gas& Elec., A & B.(guar.).— 4314c Dec. 24 Holders of ree. Nov. 29 Lynchburg & Abingdon Tel.(s-a) 53 Jan. 2 Holders of rec. Dec. 15 Memphis Natural Gas. $7 pref. (quar.)- 8144 Jan. 1 Holders of rec. Dec. 20 Memphis Pow.& Lt..16 Pref.(Quar.)$14 Jan. 2 Holders ot rec. Doe. 16 5111 Jan. 2 Holders of rec. Dee. 16 $7 preferred (qua?.) Metropolitan Edison,57 pref.(quer.)_ _ _ 5134 Jan. 1 Holders of rec. Nov.29 314 Jan. 1 Holders of rec. Nov. 29 $6 preferred (quar.) $1 34 Jan. 1 Holders of ree. Nov. 29 $5 preferred (guar.) Middiesen Water. 7% prefrred (s-a) 534 Jan. 2 Holders of ree. Dec. 22 Minn. Power & Lt. Co.$6 pref.(qu.)--- h75o Jan. 2 Holders of rec. Doe. 11 7% preferred (guar.) 588c Jan. 2 Holders of rec. Doe. 11 River Mississippi Power, pref. (guar.).- 314 Jan. 2 Holders of rec. Doe. 15 Mississippi Valley Public Service Co— 1 Holders of roe. Dec. 22 $134 Jan n% Preferred service B (quar.) Monongahela West Penn Public Service 7% preferred (guar.) 43340. Jan. 2 Holders of me. Dee. 15 Mountain :states Tel. & Tel.(guar.) $2 Jan. 15 Holders of roe. Dee. 30 Nassau & Suffolk Lighting Co. 7% preferred (quar.) III% Jan. 1 Holders of rec. Dec. 15 New England Gee & Elec. Assoc. 55 Si preferred ((oar $115 Jeri. 2 Holders of rec. Nov.29 New England Power, 6% pref. (guar.). $154 Jan. 2 Holders of rec. Dee. 11 New England Power Assoc., corn.(qu.)50c Jan. 15 Holders of rec. Dec. 30 $6 preferred (guar.) $14 Jan. 2 Holders of roe. Doe. 11 $2 preferred (quar.) 50o Jan. 2 Holders of ree. Dec. 11 Nes nglandTel & Tel $1 4 Dec. 30 Holders of roe Dec. 9 New Haven Water(semi-ruin.) $2 Jan. 2 Holders of rec. Doe. 21 New Jeyey P.& L., $6 pref.(quar.)---- $14 Jan. 1 Holders of rec. Nov. 29 5134 Jan. 1 Holders of rec. Nov. 29 55 preferred (quar.) 5114 Jan. 2 Holders of rec. Dee. 20 New Jersey Water 7% pref.(quar.) The Jan. 2 Holders of reo. Dee. 31 New York Mutual Tel.(s a) New York Steam Corp., $6 pref.(qu.).- 51 )4 Jan. 2 Holders of ree. Dec. 15 5151 Jan. 2 Holders of rec. Dec. 15 $7 preferred (qua?.) New York Telep Co., 634% pref. (qtr.) $14 Jan. 15 Holders of rec. Dec. 20 50e. Dec. 28 Holders of ree. Dee. 15 New York 'eranspeirtatIon Co (quar.). _ Newport Elect. Corp.,6% pref.(guar.). 5134 Jan. 2 Holders of roe. Doe. 15 North shore Gas Co.. pref.(guar.) 58e Jan. 2 Holders of rec. Doe. 9 Northern Ontario Power Co.,corn.(or.). 500. Jan. 25 Holders of roe. Doe. 30 Preferred ((Mar.) 814 Jan. 25 Holders of rec. Dee. 30 • leg.(8 a).. Nortliw. $1 4 Jan. 2 Hoidene of tee Dee 16 Nova Scotia light & Pow.(guar.) The Jan. 2 Holders of roe. Doe. 16 Ohio Edison Co.. $5 pref. (guar.) 5134 Jan. 2 Holders of rec. Doe. 15 $6 preferred (guar.) $14 Jan. 2 Holders of rec. Doe. 15 $8.60 preferred (guar.) $1.65 Jan. 2 Holders of rec. Doe. 15 $7 preferred (quar.) 5111 Jan. 2 Holders of roe. Dec. 15 $7.20 preferred (guar.) $1.80 Jan. 2 Holders of roe. Doe. 15 Ohio Pub ervice Co., 7% pref.(mo.)-- 581 3c Jan. 2 Holders of roe. Dec. 15 preferred 8% (monthly) 500 Jan. 2 Holders of ree. Dee. 15 5% preferred (monthly) 41 2-3o. Jan. 2 Holders of roe. Doe. 15 Ottawa Light, Heat& Power (quar.) 5134 Jan. 1 Holders of rec. Dec. 15 Preferred (guar.) 5134 Jan. 1 Holders 01 rec. Dec. 15 Pacified AtIlliitte Tel.(s-a) $IA fen. 2 Holders ni rec. Dee 15 Pacific Gas & Elec., common (quar.)__-- 374c Jan. 15 Holders of rec. Dec. 30a $7 preferred (quar.) 5111 Jan. 2 Holders of rec. Doe. 20 2% preferred (quar.) $134 Jan. 2 Holders of rec. Dec. 20 Pacific Lizhting Corp. pref. (quar.)-- $134 Jan. 15 Holders of rec. Dec. 30 Pacific Tel. & Tel., common (guar.).— 5134 Dee. 30 Holders of roe. Dee. 20 Preferred (quar.) 514 Jan. 15 Holders of rec. Dec. 30 Panama Cower & Light, pref. (guar.)._ 3111 Jan. 2 Holders of rec. Dec. 26 Peninsular Telep. Co., common (guar.). 25e Jan. 1 holders on rec. Dee. 15 7% preferred (guar.) 111% Feb. 15 Holders of rec. Feb. 5 Penn Central I.t. & Pow.5% pref. (gr.). $14 Jan. 1 Holders of ree. Dec. 11 $2.80 preferred (guar.) 70e. Jan. 1 Holders of rec. Dec. 11 Pa. G.& E. Corp. (Del.). 7% pref.(qu.) $134 Jan. 2 Holders of rec. Dec. 20 $7 preferred (qua?.) $131 Jan. 2 Holders of rec. Dec. 20 Pennsyl v oda Power & Light 57 pret.(qu) $1 34 Jan. 2 Holders of rec. Dee. 12 $6 preferred (guar.) $14 Jan. 2 Holders of rec. Dec. 12 88 preferred (quill.) $134Jan. 2 Holders of roe. Doe. 12 pennsylvania Telep. 00.6% pref. (qu.)- 5134 Jan. 2 Holders of rec. Doe. 15 Pennsylvania Witter & Pow..rem (qu.. 75e Jan. 2 Holders ni rec. Dec. 15 Preferred (quar.) 5111 Jan. 2 Holders of ree. Dee. 15 peoples Natural Gas, 5% pref. (quar.). 6234c Jan. 2 Holders of rec. Dec. 15 Peoria Water Works,7% pref. (guar.).- 5I34 Jan. 2 Holders of rec. Dee. 20 Philadelphia Co., $6 pref. ((luar.) $114 Jan. 2 Holders 01 roe. Dec. 1 85 preferred (qua?.) 5134 Jan. 2 Holders of rec Dec. 1 Philadelphia Moe. Pow.Co.8% Pt.(gr.) 50o. Jan. 1 Holders of reo. Doe, 5 31 34 Jan. Plainfield Union Water (quar.) Holders of rec. Jan. 2 Ponee Eh el.. 7% pref. (guar.) 5131 Jan. Holders of ree. Dec. 15 Providence Gas Co. (quar.) 2543 Jan. 2 Holders of ree. Doe. 11 Public Servi.s. Elec. & Gas Co. 2% preferred (guar.) 8134 Dee. 80 Holders of tee. Dee. I $134 Dee. 30 Holders of ree. Dec. 1 55 preferred (quar.) Public Service Co.of Colo.7% Pf.(mo.)- 58 1-3e Jan. 2 Holders of rec. Dec. 15 500 Jan. Holders of roe. Dee. 15 6% preferred (monthly) 41 2 3o Jan. 2 Holders of rec. Dec. 15 5% preferred (monthly) 70c Deo. 30 Holders of roe. Dec. 1 Public serviee of N J., corn. (qu.) Dee. 30 Holders of rem Dee. 1 $2 85' pref. rred (guar.) 5111 Dec. 30 Holders of roe. Dec. 1 7% preferred (guar.) $134 Dec. 30 Holders of rec. Dec. 1 $5 preferred (guar.) 50c Dec. 30 Holders of rec. Dee. 1 6% preferred (monthly) Public Service of Oklahoma,6% Pt.(gel.) $134 Jan. 2 Holders of rec. Doe. 20 5134 Jan. 2 Holders of rec. Doe. 20 7% preferred ((luar.) $1/1 Jan. 2 Holders of rec. Dec. 15 Puerto Rico Power pref.(guar.) Queensborough Gas & Elec.. $6 pt. (au.) $134 Jan. 1 Holders of roe. Dec. 15 Jan. 1 Holders of rec. Dec. 20 Richmond W der Wks. Corp.6% Pf.(qu) 51 Rochester Telep. Corp.. corn.(guar.)._ _ $134 Jan. 2 Holders of ree. Dec. 20 yi% let preferred (guar.) $134 Jan. 2 Holders of rec. Dec. 20 6134 Jan. 2 Holders of rte. Dec. 20 5% preferred (guar.) Rockville Willimliantic Lighting$134 Jan. 2 Holders of rec. Doe. 15 7% preferred (quar.) $14 Jan. 2 Holders of rec. Dec. 15 6% preferred (quar.) $2 Jan. 2 Holders of rec. Dee. 8 Savannah Lice & Pow , pref. A (guar.) 51% Jan. 2 Holders of rec. Dec. 8 Preferred -cries B (quar.) Preferred series C (guar.) $111 Jan. 2 Holders of ree. Dec. 8 Preferred series D (guar.) 5134 Jan. 2 Holders of rec. Dec. 8 Noma of Company 4489 Per When Share. Payable. Books Closed Days Inclusive. Public Utilities—(Coneluded). St. Louis Bridge, 1st prer.(s-a) $3 Jan. 2 Holders of rec. Dec. 15 In preferred (s-a) $14 Jan. 2 Holders of rec. Dec. 15 Scranton Electric 38 pref. (qua?.) $14 Jan. 2 Holders of rec. Dec. 11 South Carolina Pow. Co., $6 pref.(qu.) $14 Jan. 1 Holders of rec. Dec. 15 Southern California Edison Co., orig. pt. 2% Jan. 15 Holders of roe. Doe. 20 54% preferred. series C 134% Jan. 15 Holders of rec. Dec. 20 Southern Canada Power,6% pref. (qr.)- 14% Jan. 15 Holders of rec. Doe. 20 Southern Indiana Gas & El.7% pt.(qu.) 111% Jan. 1 Holders of rec. Dec. 20 6% preferred (quar.) 134% Jan. 1 Holders of rec. Dec. 20 6.6% preferred (quar.) 1.65% Jan. 1 Holders of rec. Dec. 20 3% Jan. 1 Holders of rec. Dec. 20 6% Preferred (semi-ann.) Southwestern Bell Toren.. pref. (quar.) 5111 Jan. 2 Holders of rec. Dee. 20 Southwestern Gas de Klee..8% Pt.(au.). 52 Jan. 2 Holders of ree. Doe. 15 7% preferred (quar.) $IM Jan. 2 Holders of rec. Doe. 15 Southwestern Light & Power Co.6% inf. 500 Jan. 2 Holders of rec. Dec. 15 Springfield Rye. Cos., prof 75c Jan. 2 45c Jan. 25 Holders of rec. Dec. 30 Standard Gas & Elec.$6 pref.(guar.) 523.4e Jan. 25 Holders of rec. Dec. 30 $7 preference (qua?.) Standard Pow. dr Lt. Corp. pref.(qua?.) 524e Feb. 1 Holders of rec. Jan. 15 Tampa Gas Co.(quar.) 50o Jan. 2 Holders of roe. Dec. 20 Telephone Investors Corp.(monthly)___ 20c Jan. 1 Holders of rec. Doe. 20 Tennessee Elec.Pow.Co.,5% pref.(qI.) 5111 Jan. 2 Holders of roe. Doe. 15 $14 Jan. 2 Holders of rec. Dec. 15 6% Preferred (guar.) 7% preferred (quar.) 5154 Jan. 2 Holders of rec. Dec. 15 $1.80 Jan. 2 Holders of rec. Doe. 15 7.2% preferred (quar.) 6% preferred (monthly) 50o Jan. 2 Holders of rec. Dee. 15 7.2% preferred (monthly) 60c Jan. 2 Holders of rec. Dec. 16 Toledo Edison Co.7% pref.(monthly).. 58 1-3c Jan. 2 Holders of rec. Dec. 15 50o Jan. 2 Holders of rec. Dec. 15 6% preferred (monthly) 412-30 Jan. 2 Holders of rem Dec. 15 5% preferred(monthly) Tel-Continental Corp.$6 pref.(qua?.).. $14 Jan. 1 Holders of rec. Dec. 16 Twin State Gas & Elec.. pref. (guar.).$134 Jan. 2 Holders of rec. Dee. 15 Union Elec. Lt.& Pow.of 111.6% rit.(qe.) $1 34 Jan. 2 Holders of rec. Dec. 15 Union Elec. Lt. de Pow.(Mo.) pref.(qu.) $114 Jan. 2 Holders of rec. Dec. 15 Union Passenger Ry. Co.(semi-ann.)... $4 Jan. 1 Holders of ree. Dee. 15 Union reaction of Philadelphia 37.3 Jan. 2 Holders of rec. Dec. 15 United Corp., $3 pref. (qua?.) 75e Jan. 2 Holders of rec. Dec. 1 United Gas & Elec. Corp., prof.(qua?.). 154% Jan. 1 Holders of rec. Dee. 15 30e Dec. 30 Holders of rec. Nov. 29 United Gas Improvement, corn. (guar.) $1.11 Dec. 30 Holders of rem Nov.29 Preferred (quar.) United Lt.& Rys (Del.),7% pf.(roo.)-- 58 1-50 Jan. 2 Holders of roe. Doe. 15 6.36% preferred (monthly) 53c Jan. 2 Holders of roe. Dee. 15 6% preferred (montlhy) 50o Jan. 2 Holders of rem Dee. 15 Virginia Pub. Serv. Co., 7% pref.(qu.). $111 Jan. 1 Holders of rec. Doe. 11 6% preferred (quar.) $134 Jan. 1 Holders of rec. Dec. 1 West Penn Elec. Co.. class A (quer.) $134 Dec. 30 Holders of rec. Dec. 18 West Phila. Passenger Ry.(semi-ann.).. 8434 Jan. 2 Holders of rec. Dec. 15 Western Power, 7% pref. (quar.) $ui Jan. 2 Holders of rec. Dec. 26 Westmoreland Water. $6 prof. (qua:.).. $114 Jan. 2 Holders of roe. Dee. 20 Wisconsin Telephone,common (qua?.).. $134 Preferred (guar-) $1,4 Bank and Trust Companies. Bank of the Manhattan Co.(guar.).— 50c Jan. 2 Holders of rec. Dee. 115o Bank of New York & Trust (guar.) $355 Jan. 2 Holders of rec. Dec. 22 Bankers Trust Co. (quar.) 734% Jan. 2 Holders of roe. Dec. 15 Central Hanover Bank & Trust(quer.)-- $14 Jan. 2 Holders of ree. Dec. 20 Extra $1 Jan. 2 Holders of roe. Dec. 20 Chase National Bank, N. Y. (quar.). 35e Jan. 2 Holders of ree. Doe. 9 Chemical Bank & Trust Co.(quar.)__ 450 Jan. 2 Holders of rine. Dee. 19 Citizens Nat. Trust & Say.Bank (guar.) 501 Jan. 2 Holders of rec. Dec. 20 Clinton Trust (guar.) 50o Jan. 2 Holders of ree. Doe. 15 writes 250 Jan. 2 Holders of roe. Dec. 15 Continental Bank & Trust(qua:.) 20c Jan. 1 Holders of rec. Dec. 15 Fifth Avenue Bank (quar.) 56 Jan. 2 Holders of rec. Dec. 31 First National Bank of N. Y. (qua?.).. $25 Jan. 2 llolders of rec. Dec. 20 Guaranty Trust Co.(quar.) 85 Dec. 30 Holders of rec. Doe. 15 Irving Trust Co.(quar.) 250 Jan. 2 Holders of rec. Doe. 5 Manufacturers Trust Co.(guar.) 25c Jan. 2 Holders of roe. Dec. 15 Manufacturers & Traders Trust (guar.) 30e Dec. 30 Holders of roe. Doe. 20 Merchants Bank of New York 50c Jan. 3 Holders of rec. Doe. 20 New Rochelle Trust (N. Y.) (quar.). 500 Jan. 2 Holders ol rec. Doe. 15 Public National Bank & Trust Co.(qu.) 374c Jan, 2 Holders of rec. Dec. 20 United States Trust Co.(guar.) $15 Jan. 2 Holders of roe. Dee. 21 Fire Insurance Companies. Aetna Fire Insurance Co. (guar.) 400 Jan. 1 Holders of roe. Dee. 11 Boston Insurance Co $4.21 Jan. 2 Holden of rec. Doe. 20 ditto 54.21 Arm. 2 Holders of rec. Mar. 20 Federal Insurance (Jersey City) (s -a.)Si Jan. 2 Holders of rec. Dec. 21 Halifax Flee Insurance 450 Jan. 2 Holders of rec. Dec. 9 Hanover Fire Insurance Co.(quar.)._ 40c Jan. 2 Holders of rec. Dee. 18 Hartford Fire Insurance Co.(qua?.)... 50c Jan. 2 Holders of ree. Dec. 15 Insurance 00.01 North America (s.-a.). $1 Jan. 1 Holders of rec. Dec. 30 Northwestern National Ins. Co. (guar.) $111 Doe. 30 Holders of rec. Dec. 18 Phoenix Ins. Co.(Ilartford, Conn.)(qu.) Holders of rec. Doe. 14 50c Jan. Providence Washington Ins. Co.(quar.) 20c Dec. 2 Holders of rec. Doe. 14 Extra 20c Doe. 2 Holders of sec. Dec. 14 Miscellaneous. Abbott Laboratories (guar.) 50c Jan. 3 Holders of rec. Dec. 16 Abraham & Straus, Inc., corn. (quar.) 30e Dec. 30 Holders of rec. Dec. 21 Extra 150 Dec. 30 Holders of rec. Dec. 21 Acme Steel Co
@FedFRASER